Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 20, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | BALCHEM CORP | ||
Entity Central Index Key | 9326 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $1,610,000,000 | ||
Entity Common Stock, Shares Outstanding | 30,945,086 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $50,287 | $208,747 |
Accounts receivable, net of allowance for doubtful accounts of $288 and $115 at December 31, 2014 and 2013, respectively | 71,982 | 39,386 |
Inventories | 49,623 | 24,824 |
Prepaid expenses | 4,545 | 2,580 |
Prepaid income taxes | 0 | 899 |
Deferred income taxes | 1,390 | 893 |
Other current assets | 3,475 | 445 |
Total current assets | 181,302 | 277,774 |
Property, plant and equipment, net | 131,588 | 54,916 |
Goodwill | 383,646 | 28,515 |
Intangible assets with finite lives, net | 160,394 | 15,126 |
Other assets | 4,341 | 541 |
Total assets | 861,271 | 376,872 |
Current liabilities: | ||
Trade accounts payable | 24,352 | 12,395 |
Accrued expenses | 15,614 | 10,732 |
Accrued compensation and other benefits | 9,137 | 4,770 |
Dividends payable | 9,251 | 7,856 |
Income taxes payable | 2,168 | 0 |
Current portion of long-term debt | 35,000 | 0 |
Total current liabilities | 95,522 | 35,753 |
Long-term debt | 297,500 | 0 |
Deferred income taxes | 70,401 | 5,884 |
Other long-term obligations | 5,950 | 3,877 |
Total liabilities | 469,373 | 45,514 |
Commitments and contingencies (note 11) | ||
Stockholders' equity: | ||
Preferred stock, $25 par value. Authorized 2,000,000 shares; none issued and outstanding | 0 | 0 |
Common stock, $.0667 par value. Authorized 60,000,000 shares; 30,845,586 shares issued and outstanding at December 31, 2014 and 30,225,763 shares issued and outstanding at December 31, 2013 | 2,058 | 2,016 |
Additional paid-in capital | 97,289 | 77,517 |
Retained earnings | 295,202 | 251,627 |
Accumulated other comprehensive income (loss) | -2,651 | 198 |
Treasury stock, at cost: 0 and 0 shares at December 31, 2014 and 2013, respectively | 0 | 0 |
Total stockholders' equity | 391,898 | 331,358 |
Total liabilities and stockholders' equity | $861,271 | $376,872 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Current assets: | ||
Allowance for doubtful accounts | $288 | $115 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $25 | $25 |
Preferred stock, authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.07 | $0.07 |
Common stock, authorized (in shares) | 60,000,000 | 60,000,000 |
Common stock, issued (in shares) | 30,845,586 | 30,225,763 |
Common stock, outstanding (in shares) | 30,845,586 | 30,225,763 |
Treasury stock (in shares) | 0 | 0 |
Consolidated_Statements_of_Ear
Consolidated Statements of Earnings (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements of Earnings [Abstract] | |||
Net sales | $541,383 | $337,173 | $310,393 |
Cost of sales | 397,211 | 239,752 | 220,854 |
Gross margin | 144,172 | 97,421 | 89,539 |
Operating expenses: | |||
Selling expenses | 35,758 | 15,920 | 15,934 |
Research and development expenses | 4,810 | 3,622 | 3,422 |
General and administrative expenses | 21,461 | 12,277 | 10,406 |
Total operating expenses | 62,029 | 31,819 | 29,762 |
Earnings from operations | 82,143 | 65,602 | 59,777 |
Other expenses (income): | |||
Interest income | -64 | -277 | -10 |
Interest expense | 5,145 | 24 | 10 |
Other, net | 10 | 37 | -67 |
Earnings before income tax expense | 77,052 | 65,818 | 59,844 |
Income tax expense | 24,226 | 20,944 | 19,839 |
Net earnings | $52,826 | $44,874 | $40,005 |
Basic net earnings per common share (in dollars per share) | $1.74 | $1.51 | $1.38 |
Diluted net earnings per common share (in dollars per share) | $1.69 | $1.45 | $1.32 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements of Comprehensive Income [Abstract] | |||
Net earnings | $52,826 | $44,874 | $40,005 |
Other comprehensive income (loss), net of tax: | |||
Net foreign currency translation adjustment | -2,972 | 856 | 342 |
Net change in postretirement benefit plan, net of taxes of $56, $60, and $86 at December 31, 2014, 2013, and 2012, respectively | 123 | 101 | -163 |
Other comprehensive income (loss) | -2,849 | 957 | 179 |
Comprehensive income | $49,977 | $45,831 | $40,184 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other comprehensive income (loss), net of tax: | |||
Net change in postretirement benefit plan, taxes | $56 | $60 | ($86) |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] |
In Thousands, except Share data | ||||||
Balance - beginning of year at Dec. 31, 2011 | $232,009 | $181,070 | ($938) | $1,944 | $0 | $49,933 |
Balance - beginning of year (in shares) at Dec. 31, 2011 | 29,165,721 | 0 | ||||
Net earnings | 40,005 | 40,005 | 0 | 0 | 0 | 0 |
Other comprehensive income | 179 | 0 | 179 | 0 | 0 | 0 |
Dividends | -6,466 | -6,466 | 0 | 0 | 0 | 0 |
Treasury shares purchased | -1,699 | 0 | 0 | 0 | -1,699 | 0 |
Treasury shares purchased (in shares) | 0 | -43,680 | ||||
Shares issued under employee benefit plans and other | 311 | 0 | 0 | 1 | 0 | 310 |
Shares issued under employee benefit plans and other (in shares) | 10,145 | 0 | ||||
Shares and options issued under stock plans and an income tax benefit | 8,673 | 0 | 0 | 19 | 1,699 | 6,955 |
Shares and options issued under stock plans and an income tax benefit (in shares) | 278,305 | 43,680 | ||||
Balance - end of year at Dec. 31, 2012 | 273,012 | 214,609 | -759 | 1,964 | 0 | 57,198 |
Balance - end of year (in shares) at Dec. 31, 2012 | 29,454,171 | 0 | ||||
Net earnings | 44,874 | 44,874 | 0 | 0 | 0 | 0 |
Other comprehensive income | 957 | 0 | 957 | 0 | 0 | 0 |
Dividends | -7,856 | -7,856 | 0 | 0 | 0 | 0 |
Treasury shares purchased | -1,925 | 0 | 0 | 0 | -1,925 | 0 |
Treasury shares purchased (in shares) | 0 | -33,566 | ||||
Shares and options issued under stock plans and an income tax benefit | 22,296 | 0 | 0 | 52 | 1,925 | 20,319 |
Shares and options issued under stock plans and an income tax benefit (in shares) | 771,592 | 33,566 | ||||
Balance - end of year at Dec. 31, 2013 | 331,358 | 251,627 | 198 | 2,016 | 0 | 77,517 |
Balance - end of year (in shares) at Dec. 31, 2013 | 30,225,763 | 0 | ||||
Net earnings | 52,826 | 52,826 | 0 | 0 | 0 | 0 |
Other comprehensive income | -2,849 | 0 | -2,849 | 0 | 0 | 0 |
Dividends | -9,251 | -9,251 | 0 | 0 | 0 | 0 |
Treasury shares purchased | -1,068 | 0 | 0 | 0 | -1,068 | 0 |
Treasury shares purchased (in shares) | 0 | -17,497 | ||||
Shares and options issued under stock plans and an income tax benefit | 20,882 | 0 | 0 | 42 | 1,068 | 19,772 |
Shares and options issued under stock plans and an income tax benefit (in shares) | 619,823 | 17,497 | ||||
Balance - end of year at Dec. 31, 2014 | $391,898 | $295,202 | ($2,651) | $2,058 | $0 | $97,289 |
Balance - end of year (in shares) at Dec. 31, 2014 | 30,845,586 | 0 |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements of Stockholders' Equity [Abstract] | |||
Dividends (in dollars per share) | $0.30 | $0.26 | $0.22 |
Income tax benefit of shares and options issued under stock plans | $7,220 | $9,397 | $2,862 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net earnings | $52,826 | $44,874 | $40,005 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 30,524 | 10,474 | 9,641 |
Stock compensation expense | 4,557 | 3,817 | 3,906 |
Shares issued under employee benefit plans | 0 | 0 | 311 |
Deferred income taxes | -11,259 | -315 | -92 |
Provision for doubtful accounts | 238 | 0 | 57 |
Foreign currency transaction loss | 105 | 92 | 88 |
Loss on disposal of assets | 150 | 0 | 0 |
Changes in assets and liabilities, net of acquired balances | |||
Accounts receivable | -8,395 | 2,958 | -7,642 |
Inventories | 6,698 | -3,942 | -1,979 |
Prepaid expenses and other current assets | -848 | 495 | -387 |
Accounts payable and accrued expenses | 7,747 | -2,770 | 5,775 |
Income taxes | 3,370 | -620 | 3,890 |
Other | -363 | 629 | 208 |
Net cash provided by operating activities | 85,350 | 55,692 | 53,781 |
Cash flows from investing activities: | |||
Capital expenditures | -13,199 | -8,187 | -13,883 |
Cash paid for acquisition, net of cash acquired | -491,057 | 0 | 0 |
Proceeds from sale of property, plant and equipment | 1 | 40 | 0 |
Intangible assets acquired | -169 | -230 | -121 |
Net cash used in investing activities | -504,424 | -8,377 | -14,004 |
Cash flows from financing activities: | |||
Proceeds from long-term debt | 350,000 | 0 | 178 |
Principal payments on long-term debt | -17,500 | 0 | -1,386 |
Proceeds from revolving loan | 50,000 | 0 | 0 |
Principal payments on revolving loan | -50,000 | 0 | 0 |
Principal payment on acquired debt | -75,550 | 0 | 0 |
Cash paid for financing costs | -2,593 | 0 | 0 |
Repayments of short-term obligations | -89 | -89 | 0 |
Proceeds from stock options exercised | 9,106 | 9,082 | 1,905 |
Excess tax benefits from stock compensation | 7,220 | 9,397 | 2,862 |
Dividends paid | -7,856 | 0 | -11,703 |
Purchase of treasury stock | -1,068 | -1,925 | -1,699 |
Net cash provided by (used in) financing activities | 261,670 | 16,465 | -9,843 |
Effect of exchange rate changes on cash | -1,056 | 230 | 22 |
Increase/(Decrease) in cash and cash equivalents | -158,460 | 64,010 | 29,956 |
Cash and cash equivalents beginning of period | 208,747 | 144,737 | 114,781 |
Cash and cash equivalents end of period | $50,287 | $208,747 | $144,737 |
BUSINESS_DESCRIPTION_AND_SUMMA
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 - BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||
Business Description | |||||||||
Balchem Corporation (including, unless the context otherwise requires, its wholly-owned subsidiaries, Performance Chemicals & Ingredients Company (d/b/a SensoryEffects), BCP Ingredients, Inc., Aberco, Inc., Balchem BV, Balchem Trading BV, and Balchem Italia Srl (“Balchem” or the “Company”)), incorporated in the State of Maryland in 1967, is engaged in the development, manufacture and marketing of specialty performance ingredients and products for the food, nutritional, feed, pharmaceutical and medical sterilization industries. As of December 31, 2013, Balchem Trading BV was merged into Balchem Italia Srl. | |||||||||
Principles of Consolidation | |||||||||
The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. | |||||||||
Revenue Recognition | |||||||||
Revenue for each of our business segments is recognized upon product shipment, passage of title and risk of loss, and when collection is reasonably assured. The Company reports amounts billed to customers related to shipping and handling as revenue and includes costs incurred for shipping and handling in cost of sales. Amounts received for unshipped merchandise are not recognized as revenue but rather they are recorded as customer deposits and are included in current liabilities. In instances of shipments made on consignment, revenue is deferred until a customer indicates to the Company that it has used the Company’s products. The Company does not charge its customers rental fees on cylinders or drums used to ship its products. | |||||||||
Cash and Cash Equivalents | |||||||||
The Company considers all highly liquid investments with a maturity of three months or less to be cash equivalents. The Company has funds in its cash accounts that are with third party financial institutions, primarily in certificates of deposit and money market funds. The Company’s U.S. cash balances at these financial institutions exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance limits. | |||||||||
Accounts Receivable | |||||||||
Credit terms are granted in the normal course of business to our customers. On-going credit evaluations are performed on our customers and credit limits are adjusted based upon payment history and the customer's current credit worthiness, as determined through review of their current credit information. Collections and payments from customers are continuously monitored and allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments are maintained. Estimated losses are based on historical experience and any specific customer collection issues identified. | |||||||||
Inventories | |||||||||
Inventories are valued at the lower of cost (first in, first out or average) or market value and have been reduced by an allowance for excess or obsolete inventories. Cost elements include material, labor and manufacturing overhead. | |||||||||
Property, Plant and Equipment and Depreciation | |||||||||
Property, plant and equipment are stated at cost. Depreciation of plant and equipment is calculated using the straight-line method over the estimated useful lives of the assets as follows: | |||||||||
Buildings | 15-25 years | ||||||||
Equipment | 2-28 years | ||||||||
Expenditures for repairs and maintenance are charged to expense. Alterations and major overhauls that extend the lives or increase the capacity of plant assets are capitalized. When assets are retired or otherwise disposed of, the cost of the assets and the related accumulated depreciation are removed from the accounts and any resultant gain or loss is included in earnings. | |||||||||
Business Concentrations | |||||||||
Financial instruments that subject the Company to credit risk consist primarily of certificates of deposit, money market investments and accounts receivable. Investments are managed within established guidelines to mitigate risks. Accounts receivable subject the Company to credit risk partially due to the concentration of amounts due from customers. The Company extends credit to its customers based upon an evaluation of the customers’ financial condition and credit histories. The majority of the Company’s customers are major national or international corporations. In 2014, 2013 and 2012, no customer accounted for more than 10% of total net sales. | |||||||||
Goodwill and Acquired Intangible Assets | |||||||||
Goodwill represents the excess of costs over fair value of assets of businesses acquired. ASC 350, “Intangibles-Goodwill and Other,” requires the use of the acquisition method of accounting for a business combination and defines an intangible asset. Goodwill and intangible assets acquired in a business combination and determined to have an indefinite useful life are not amortized, but are instead assessed for impairment annually and more frequently if events and circumstances indicate that the asset might be impaired, in accordance with the provisions of ASC 350. The Company performs its annual test as of October 1. ASC 350 also requires that intangible assets with estimable useful lives be amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment if events and circumstances indicate that the asset might be impaired. | |||||||||
As of December 31, 2012, the Company adopted ASU No. 2011-08, “Intangibles—Goodwill and Other (Topic 350): Testing Goodwill for Impairment” (“ASU 2011-08”). The Company first assesses qualitative factors to determine whether it is “more likely than not” (i.e. a likelihood of more than 50%) that the fair values of our reporting units are less than their respective carrying amounts, including goodwill, as a basis for determining whether it is necessary to perform the two step goodwill impairment test. If determined to be necessary, the two step impairment test shall be used to identify potential goodwill impairment and measure the amount of a goodwill impairment loss to be recognized (if any). The Company has an unconditional option to bypass the qualitative assessment and proceed directly to performing the first step of the goodwill impairment test. | |||||||||
As of October 1, 2014 and 2013, the Company opted to bypass the qualitative assessment and proceeded directly to performing the first step of the goodwill impairment test. We assessed the fair values of our reporting units by utilizing the income approach, based on a discounted cash flow valuation model as the basis for our conclusions. Our estimates of future cash flows included significant management assumptions such as revenue growth rates, operating margins, discount rates, estimated terminal values and future economic and market conditions. Our assessment concluded that the fair values of the three reporting units exceeded their carrying amounts, including goodwill. Accordingly, the goodwill of the three reporting units is not considered impaired. The Company may resume performing the qualitative assessment in subsequent periods. | |||||||||
The Company had unamortized goodwill in the amount of $383,646 and $28,515 at December 31, 2014 and December 31, 2013, respectively, subject to the provisions of ASC 350. Unamortized goodwill is allocated to the Company’s reportable segments as follows: | |||||||||
2014 | 2013 | ||||||||
Specialty Products | $ | 7,160 | $ | 7,160 | |||||
SensoryEffects | 363,524 | 8,393 | |||||||
Animal Nutrition and Health | 12,962 | 12,962 | |||||||
Total | $ | 383,646 | $ | 28,515 | |||||
The following intangible assets with finite lives are stated at cost and are amortized either on an accelerated basis or on a straight-line basis over the following estimated useful lives: | |||||||||
Amortization Period | |||||||||
(in years) | |||||||||
Customer relationships and lists | 10 | ||||||||
Trademarks & trade names | 17 | ||||||||
Developed technology | 5 | ||||||||
Regulatory registration costs | 5 - 10 | ||||||||
Patents & trade secrets | 15 - 17 | ||||||||
Other | 5 - 10 | ||||||||
For the year ended December 31, 2014, there were no triggering events which required asset impairment reviews. | |||||||||
Income Taxes | |||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | |||||||||
Use of Estimates | |||||||||
Management of the Company is required to make certain estimates and assumptions during the preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States of America. These estimates and assumptions impact the reported amount of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and revenues and expenses during the reporting period. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the consolidated financial statements in the period they are determined to be necessary. Actual results could differ from those estimates. | |||||||||
Fair Value of Financial Instruments | |||||||||
The Company has a number of financial instruments, none of which are held for trading purposes. The Company estimates that the fair value of all financial instruments at December 31, 2014 and 2013 does not differ materially from the aggregate carrying values of its financial instruments recorded in the accompanying consolidated balance sheets. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. Considerable judgment is necessarily required in interpreting market data to develop the estimates of fair value, and, accordingly, the estimates are not necessarily indicative of the amounts that the Company could realize in a current market exchange. The carrying value of debt approximates fair value as the interest rate is based on market and the Company’s consolidated leverage ratio. The Company’s financial instruments also includes cash equivalents, accounts receivable, accounts payable and accrued liabilities, and are carried at cost which approximates fair value due to the short-term maturity of these instruments. | |||||||||
Cost of Sales | |||||||||
Cost of sales are primarily comprised of raw materials and supplies consumed in the manufacture of product, as well as manufacturing labor, maintenance labor, depreciation expense, and direct overhead expense necessary to convert purchased materials and supplies into finished product. Cost of sales also includes inbound freight costs, outbound freight costs for shipping products to customers, warehousing costs, quality control and obsolescence expense. | |||||||||
Selling, General and Administrative Expenses | |||||||||
Selling expenses consist primarily of compensation and benefit costs, amortization of customer relationships and lists, trade promotions, advertising, commissions and other marketing costs. General and administrative expenses consist primarily of payroll and benefit costs, occupancy and operating costs of corporate offices, depreciation and amortization expense on non-manufacturing assets, information systems costs and other miscellaneous administrative costs. In 2014, general and administrative expenses were reduced by a $2.9 million net legal settlement. | |||||||||
Research and Development | |||||||||
Research and development costs are expensed as incurred. | |||||||||
Net Earnings Per Common Share | |||||||||
Basic net earnings per common share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net earnings per common share is calculated in a manner consistent with basic net earnings per common share except that the weighted average number of common shares outstanding also includes the dilutive effect of stock options outstanding and unvested restricted stock (using the treasury stock method). | |||||||||
Stock-based Compensation | |||||||||
The Company has stock-based employee compensation plans, which are described more fully in Note 3. The Company accounts for stock-based compensation in accordance with ASC 718, “Compensation-Stock Compensation,” which requires all share-based payments, including grants of stock options, to be recognized in the income statement as an operating expense, based on their fair values. The Company estimates the fair value of each option award on the date of grant using a Black-Scholes based option-pricing model. Estimates of and assumptions about forfeiture rates, terms, volatility, interest rates and dividend yields are used to calculate stock-based compensation. A significant change to these estimates could materially affect the Company’s operating results. | |||||||||
Impairment of Long-lived Assets | |||||||||
Long-lived assets, such as property, plant, and equipment, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset, which is generally based on discounted cash flows. | |||||||||
Reclassifications | |||||||||
Certain reclassifications have been made to the prior years’ financial statements to conform to the current year’s presentation with no impact on net earnings or stockholders’ equity. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
ACQUISITIONS [Abstract] | |||||||||||||||||
ACQUISITIONS | NOTE 2 – ACQUISITIONS | ||||||||||||||||
On May 7, 2014, the Company acquired 100 percent (the “Acquisition”) of the outstanding common shares of Performance Chemicals & Ingredients Company (d/b/a SensoryEffects), a privately held supplier of customized food and ingredient systems, headquartered in St. Louis, Missouri. The Company made payments of approximately $569 million on the acquisition date, amounting to approximately $494 million to the former shareholders, including adjustments for working capital acquired, and approximately $75 million to SensoryEffects’ lenders to pay off all SensoryEffects bank debt. SensoryEffects is a leader in powder, solid and liquid flavor systems, creamer and specialty emulsified powders, cereal-based products and other functional ingredient food and beverage delivery systems. The Acquisition of SensoryEffects accelerates the Company’s growth into the health and wellness markets. SensoryEffects was merged with the Company’s Food, Pharma & Nutrition segment, strengthening its market leadership position, and the segment was renamed SensoryEffects. | |||||||||||||||||
The estimated goodwill of $355,131 arising from the Acquisition consists largely of expected synergies, including the combined entities experience and technical problem solving capabilities, and acquired workforce. The goodwill is assigned to the SensoryEffects segment and approximately $20,466 is expected to be tax deductible for income tax purposes. | |||||||||||||||||
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed. | |||||||||||||||||
Cash and cash equivalents | $ | 2,635 | |||||||||||||||
Accounts receivable | 25,674 | ||||||||||||||||
Inventories | 32,000 | ||||||||||||||||
Property, plant and equipment | 75,850 | ||||||||||||||||
Customer relationships | 130,300 | ||||||||||||||||
Trade names | 31,100 | ||||||||||||||||
Developed technology | 3,200 | ||||||||||||||||
Other assets | 3,955 | ||||||||||||||||
Indemnification asset | 1,650 | ||||||||||||||||
Trade accounts payable | (10,427 | ) | |||||||||||||||
Accrued expenses | (6,326 | ) | |||||||||||||||
Bank debt | (75,550 | ) | |||||||||||||||
Deferred income taxes | (75,500 | ) | |||||||||||||||
Goodwill | 355,131 | ||||||||||||||||
Amount paid to shareholders | 493,692 | ||||||||||||||||
SensoryEffects bank debt paid on purchase date | 75,550 | ||||||||||||||||
Total amount paid on acquisition date | $ | 569,242 | |||||||||||||||
The estimated fair value of tangible and intangible assets acquired and liabilities assumed is based on management’s estimates and assumptions that are subject to change. In preparing our preliminary fair value estimates of the intangible assets and certain tangible assets acquired, management, among other things, consulted an independent advisor. The gross contractual amounts of accounts receivable approximated their recorded fair value. Certain intangible assets are not tax deductible and the related deferred tax liabilities are preliminary pending management’s final review of the acquisition date tax returns. As a result of our ongoing reviews of the tax balances, a $2.0 million reduction of the deferred income taxes and goodwill, from our original purchase price allocation, was recorded during the fourth quarter. | |||||||||||||||||
Customer relationships are amortized over a 10-year period utilizing an accelerated method based on the estimated average customer attrition rate. Trade names and developed technology are amortized over 10 years and 5 years, respectively, utilizing the straight-line method as the consumption pattern of the related economic benefits cannot be reliably determined. | |||||||||||||||||
The Company is indemnified for tax liabilities prior to the Acquisition date. The indemnification asset balance increased by $272 from May 7, 2014 to December 31, 2014 to $1,922. | |||||||||||||||||
Transaction and integration related costs included in selling, general, and administrative expenses for the year ended December 31, 2014 are $3,652. | |||||||||||||||||
The following unaudited pro forma information has been prepared as if the Acquisition had occurred on January 1, 2013. | |||||||||||||||||
Year Ended | Year Ended | ||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
Net Sales | Net Earnings | Net Sales | Net Earnings | ||||||||||||||
SensoryEffects actual results included in the Company’s consolidated income statement from May 7, 2014 through December 31, 2014 | $ | 156,192 | $ | 6,632 | $ | -0- | $ | -0- | |||||||||
Supplemental pro forma combined financial information | $ | 625,400 | $ | 61,730 | $ | 545,592 | $ | 41,603 | |||||||||
Basic earnings per share | $ | 2.03 | $ | 1.4 | |||||||||||||
Diluted earnings per share | $ | 1.98 | $ | 1.35 | |||||||||||||
2014 supplemental pro forma earnings for the year ended December 31, 2014 exclude $17,248 of acquisition-related costs incurred and $4,735 of nonrecurring expenses related to the fair value adjustment to acquisition-date inventory. The 2013 supplemental pro forma earnings were adjusted to include the $4,735 of nonrecurring expense related to the fair value adjustment to acquisition date inventory. The pro forma information presented does not purport to be indicative of the results that actually would have been attained if the SensoryEffects acquisition had occurred at the beginning of the periods presented and is not intended to be a projection of future results. |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
STOCKHOLDERS' EQUITY [Abstract] | ||||||||||||||||||
STOCKHOLDERS' EQUITY | NOTE 3 - STOCKHOLDERS’ EQUITY | |||||||||||||||||
STOCK-BASED COMPENSATION | ||||||||||||||||||
In accordance with ASC 718, all share-based payments, including grants of stock options, are recognized in the income statement as an operating expense, based on their fair values. | ||||||||||||||||||
As required by ASC 718, the Company has made an estimate of expected forfeitures, based on its historical experience, and is recognizing compensation cost only for those stock-based compensation awards expected to vest. | ||||||||||||||||||
Additionally, since adoption of ASC 718, excess tax benefits related to stock compensation are presented as a cash inflow from financing activities. This change had the effect of decreasing cash flows from operating activities and increasing cash flows from financing activities by $7,220, $9,397 and $2,862 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||
The Company’s results for the years ended December 31, 2014, 2013 and 2012 reflected the following compensation cost as a result of adopting ASC 718 and such compensation cost had the following effects on net earnings: | ||||||||||||||||||
Increase/(Decrease) for the | ||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Cost of sales | $ | 593 | $ | 607 | $ | 523 | ||||||||||||
Operating expenses | 3,963 | 3,210 | 3,383 | |||||||||||||||
Net earnings | (2,926 | ) | (2,370 | ) | (2,469 | ) | ||||||||||||
On December 31, 2014, the Company had one share-based compensation plan, which is described below (the “1999 Stock Plan”). | ||||||||||||||||||
In June 1999, the Company adopted the Balchem Corporation 1999 Stock Plan for officers, directors, directors emeritus and employees of and consultants to the Company and its subsidiaries. The 1999 Stock Plan is administered by the Compensation Committee of the Board of Directors of the Company. Under the plan, options and rights to purchase shares of the Company’s Common Stock are granted at prices established at the time of grant. Option grants generally become exercisable 20% after 1 year, 60% after 2 years and 100% after 3 years from the date of grant for employees and are fully exercisable on the date of grant for directors. Other option grants are either fully exercisable on the date of grant or become exercisable thereafter in such installments as the Committee may specify. Options granted under the 1999 Stock Plan expire ten years from the date of grant. The 1999 Stock Plan initially reserved an aggregate of 600,000 shares (unadjusted for the stock splits) of Common Stock for issuance under the Plan. In April 2003, the Board of Directors of the Company adopted and stockholders subsequently approved, the Amended and Restated 1999 Stock Plan (the “Amended Plan”) which amended the 1999 Stock Plan by: (i) increasing the number of shares of Common Stock reserved for issuance under the 1999 Stock Plan by 600,000 shares (unadjusted for the stock splits), to a total of 1,200,000 shares (unadjusted for the stock splits) of Common Stock; and (ii) confirming the right of the Company to grant awards of Common Stock (“Awards”) in addition to the other Stock Rights available under the 1999 Stock Plan, and providing certain language changes relating thereto. The Amended Plan was scheduled to expire in April, 2009. In April, 2008, the Board of Directors of the Company adopted and stockholders subsequently approved, the adoption of an amendment and restatement of the Amended Plan (collectively to be referred to as the “Second Amended Plan”), which provides as follows: (i) for a termination date of April 9, 2018; (ii) to authorize 6,000,000 shares reserved for future grants under the Second Amended Plan; (iii) for the making of grants of stock appreciation rights, restricted stock and performance awards; (iv) for immediate acceleration of vesting of awards issued under the plan in the event of a change in control of the Company; and (v) for compliance with the requirements of Sections 409A and 162(m) of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code” or the “Code”). The 1999 Stock Plan replaced the Company's incentive stock option plan (the “ISO Plan”) and its non-qualified stock option plan (the “Non-Qualified Plan”), both of which expired on June 24, 1999. Unexercised options granted under the ISO Plan and the Non-Qualified Plan prior to such termination remained exercisable in accordance with their terms and expired ten years from the date of grant. | ||||||||||||||||||
The shares to be issued upon exercise of the outstanding options have been approved, reserved and are adequate to cover all exercises. As of December 31, 2014, the plans had 4,064,576 shares available for future awards. | ||||||||||||||||||
The Company has Restricted Stock Purchase Agreements (the “RSP Agreements”) with its non-employee directors and certain employees of the Company to purchase the Company’s Common Stock pursuant to the Company’s 1999 Stock Plan. Under the RSP Agreements, certain shares have been purchased, ranging from 1,000 shares to 20,250 shares, of the Company’s Common Stock at purchase prices ranging from approximately $.02 per share to $.07 per share. The purchased stock is subject to a repurchase option in favor of the Company and to restrictions on transfer until it vests in accordance with the provisions of the RSP Agreements. In 2011, the Company discontinued the use of RSP Agreements and replaced them with Restricted Stock Grant Agreements for the Company’s non-employee directors and certain employees. Under the Restricted Stock Grant Agreements, certain shares of the Company’s Common Stock have been granted, ranging from 500 shares to 20,000 shares, to its non-employee directors and certain employees, subject to time-based vesting requirements. | ||||||||||||||||||
The fair value of each option award issued under the 1999 Stock Plan is estimated on the date of grant using a Black-Scholes based option-pricing model that uses the assumptions noted in the following table. Expected volatilities are based on historical volatility of the Company’s stock. The expected term of the options is based on the Company’s historical experience of employees’ exercise behavior. Dividend yields are based on the Company’s historical dividend yields. Risk-free interest rates are based on the implied yields currently available on U.S. Treasury zero coupon issues with a remaining term equal to the expected life. | ||||||||||||||||||
Years Ended | ||||||||||||||||||
2014 | 31-Dec-13 | 2012 | ||||||||||||||||
Weighted Average Assumptions: | ||||||||||||||||||
Expected Volatility | 33.7 | % | 39.2 | % | 40.6 | % | ||||||||||||
Expected Term (in years) | 5.6 | 5 | 4.6 | |||||||||||||||
Risk-Free Interest Rate | 1.8 | % | 1 | % | 0.7 | % | ||||||||||||
Dividend Yield | 0.5 | % | 0.5 | % | 0.5 | % | ||||||||||||
The value of the restricted shares is based on the fair value of the award at the date of grant. | ||||||||||||||||||
Compensation expense for stock options and restricted stock awards is recognized on a straight-line basis over the vesting period, generally three years for stock options, ninety days to four years for employee restricted stock awards, and four to seven years for non-employee director restricted stock awards. | ||||||||||||||||||
A summary of stock option plan activity for 2014, 2013, and 2012 for all plans is as follows: | ||||||||||||||||||
# of | Weighted Average | |||||||||||||||||
2014 | Shares | Exercise Price | ||||||||||||||||
(000s) | ||||||||||||||||||
Outstanding at beginning of year | 1,893 | $ | 20.94 | |||||||||||||||
Granted | 313 | 53.38 | ||||||||||||||||
Exercised | (610 | ) | 14.92 | |||||||||||||||
Forfeited | (126 | ) | 56.03 | |||||||||||||||
Outstanding at end of year | 1,470 | $ | 27.35 | |||||||||||||||
Exercisable at end of year | 1,066 | $ | 21.52 | |||||||||||||||
# of | Weighted Average | |||||||||||||||||
2013 | Shares (000s) | Exercise Price | ||||||||||||||||
Outstanding at beginning of year | 2,543 | $ | 16.87 | |||||||||||||||
Granted | 177 | 38.73 | ||||||||||||||||
Exercised | (796 | ) | 11.4 | |||||||||||||||
Forfeited | (31 | ) | 33.9 | |||||||||||||||
Outstanding at end of year | 1,893 | $ | 20.94 | |||||||||||||||
Exercisable at end of year | 1,516 | $ | 17.64 | |||||||||||||||
# of | Weighted Average | |||||||||||||||||
2012 | Shares (000s) | Exercise Price | ||||||||||||||||
Outstanding at beginning of year | 2,514 | $ | 14.68 | |||||||||||||||
Granted | 276 | 30.35 | ||||||||||||||||
Exercised | (231 | ) | 8.24 | |||||||||||||||
Forfeited | (16 | ) | 28.53 | |||||||||||||||
Outstanding at end of year | 2,543 | $ | 16.87 | |||||||||||||||
Exercisable at end of year | 2,155 | $ | 14.3 | |||||||||||||||
The aggregate intrinsic value for outstanding stock options was $57,742, $71,465 and $49,845 at December 31, 2014, 2013 and 2012, respectively, with a weighted average remaining contractual term of 5.6 years at December 31, 2014. Exercisable stock options at December 31, 2014 had an aggregate intrinsic value of $48,085 with a weighted average remaining contractual term of 4.4 years. | ||||||||||||||||||
Other information pertaining to option activity during the years ended December 31, 2014, 2013 and 2012 was as follows: | ||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Weighted-average fair value of options granted | $ | 17.36 | $ | 13.07 | $ | 10.09 | ||||||||||||
Total intrinsic value of stock options exercised ($000s) | $ | 25,224 | $ | 28,776 | $ | 6,524 | ||||||||||||
Additional information related to stock options outstanding under all plans at December 31, 2014 is as follows: | ||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||
Shares Outstanding (000s) | Weighted | Weighted Average Exercise | Number Exercisable (000s) | Weighted Average Exercise | ||||||||||||||
Range of Exercise Prices | Average | Price | Price | |||||||||||||||
Remaining | ||||||||||||||||||
Contractual | ||||||||||||||||||
Term | ||||||||||||||||||
$ 9.21 - $22.34 | 702 | 3.4 years | $ | 16.09 | 702 | $ | 16.09 | |||||||||||
24.95 - 32.21 | 401 | 6.5 years | 30.68 | 322 | 31.08 | |||||||||||||
33.81 - 58.42 | 367 | 8.7 years | 45.28 | 42 | 39.19 | |||||||||||||
1,470 | 5.6 years | $ | 27.35 | 1,066 | $ | 21.52 | ||||||||||||
Non-vested restricted stock activity for the years ended December 31, 2014, 2013 and 2012 is summarized below: | ||||||||||||||||||
Shares (000s) | Weighted Average Grant Date Fair | |||||||||||||||||
Value | ||||||||||||||||||
Non-vested balance as of December 31, 2013 | 172 | $ | 33.69 | |||||||||||||||
Granted | 33 | 54.86 | ||||||||||||||||
Vested | (65 | ) | 34.19 | |||||||||||||||
Forfeited | (6 | ) | 45.32 | |||||||||||||||
Non-vested balance as of December 31, 2014 | 134 | $ | 38.13 | |||||||||||||||
Shares (000s) | Weighted Average Grant Date Fair | |||||||||||||||||
Value | ||||||||||||||||||
Non-vested balance as of December 31, 2012 | 258 | $ | 26.88 | |||||||||||||||
Granted | 32 | 44.69 | ||||||||||||||||
Vested | (94 | ) | 19.31 | |||||||||||||||
Forfeited | (24 | ) | 31.97 | |||||||||||||||
Non-vested balance as of December 31, 2013 | 172 | $ | 33.69 | |||||||||||||||
Shares (000s) | Weighted Average Grant Date Fair | |||||||||||||||||
Value | ||||||||||||||||||
Non-vested balance as of December 31, 2011 | 354 | $ | 18.77 | |||||||||||||||
Granted | 91 | 32.72 | ||||||||||||||||
Vested | (187 | ) | 14.38 | |||||||||||||||
Forfeited | - | - | ||||||||||||||||
Non-vested balance as of December 31, 2012 | 258 | $ | 26.88 | |||||||||||||||
As of December 31, 2014, 2013 and 2012, there was $5,981, $5,947 and $7,012, respectively, of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the plans. As of December 31, 2014, the unrecognized compensation cost is expected to be recognized over a weighted-average period of 2 years. We estimate that share-based compensation expense for the year ended December 31, 2015 will be approximately $4,900. | ||||||||||||||||||
REPURCHASE OF COMMON STOCK | ||||||||||||||||||
The Company has an approved stock repurchase program. The total authorization under this program is 3,763,038 shares. Since the inception of the program in June 1999, a total of 2,105,231 shares have been purchased, none of which remained in treasury at December 31, 2014 or 2013. During 2014, a total of 17,497 shares have been purchased at an average cost of $61.06 per share. The Company intends to acquire shares from time to time at prevailing market prices if and to the extent it deems it advisable to do so based on its assessment of corporate cash flow, market conditions and other factors. |
INVENTORIES
INVENTORIES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
INVENTORIES [Abstract] | |||||||||
INVENTORIES | NOTE 4 - INVENTORIES | ||||||||
Inventories at December 31, 2014 and 2013 consisted of the following: | |||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 19,822 | $ | 8,454 | |||||
Work in progress | 1,989 | 1,330 | |||||||
Finished goods | 27,812 | 15,040 | |||||||
Total inventories | $ | 49,623 | $ | 24,824 | |||||
On a regular basis, the Company evaluates its inventory balances for excess quantities and obsolescence by analyzing demand, inventory on hand, sales levels and other information. Based on these evaluations, inventory balances are reduced, if necessary. The reserve for inventory was $1,682 and $181 at December 31, 2014 and 2013, respectively. |
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
PROPERTY, PLANT AND EQUIPMENT [Abstract] | |||||||||
PROPERTY, PLANT AND EQUIPMENT | NOTE 5 - PROPERTY, PLANT AND EQUIPMENT | ||||||||
Property, plant and equipment at December 31, 2014 and 2013 are summarized as follows: | |||||||||
2014 | 2013 | ||||||||
Land | $ | 3,130 | $ | 2,054 | |||||
Building | 31,030 | 19,732 | |||||||
Equipment | 150,170 | 86,147 | |||||||
Construction in progress | 10,969 | 1,754 | |||||||
195,299 | 109,687 | ||||||||
Less: Accumulated depreciation | 63,711 | 54,771 | |||||||
Property, plant and equipment, net | $ | 131,588 | $ | 54,916 | |||||
Depreciation expense was $10,599, $6,498 and $5,672 for the years ended December 31, 2014, 2013 and 2012, respectively. |
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
INTANGIBLE ASSETS [Abstract] | |||||||||||||||||||||
INTANGIBLE ASSETS | NOTE 6 - INTANGIBLE ASSETS | ||||||||||||||||||||
The Company had goodwill in the amount of $383,646 as of December 31, 2014 and $28,515 as of December 31, 2013 subject to the provisions of ASC 350, “Intangibles-Goodwill and Other.” | |||||||||||||||||||||
The changes in the carrying amount of goodwill for the year ended December 31, 2014, are as follows: | |||||||||||||||||||||
Goodwill at January 1, 2014 | $ | 28,515 | |||||||||||||||||||
Goodwill as a result of the Acquisition of Performance Chemicals & Ingredients Company – see Note 2 | 355,131 | ||||||||||||||||||||
Goodwill at December 31, 2014 | $ | 383,646 | |||||||||||||||||||
As of December 31, 2014 and 2013, the Company had identifiable intangible assets as follows: | |||||||||||||||||||||
Amortization | 2014 | 2014 | 2013 | 2013 | |||||||||||||||||
Period | Gross | Accumulated Amortization | Gross | Accumulated Amortization | |||||||||||||||||
(In years) | Carrying | Carrying | |||||||||||||||||||
Amount | Amount | ||||||||||||||||||||
Customer relationships & lists | 10 | $ | 167,442 | $ | 41,238 | $ | 37,142 | $ | 24,552 | ||||||||||||
Trademarks & trade names | 17 | 32,014 | 2,540 | 910 | 461 | ||||||||||||||||
Developed technology | 5 | 3,200 | 420 | -0- | -0- | ||||||||||||||||
Regulatory registration costs | 10-May | 1,704 | 667 | 1,644 | 514 | ||||||||||||||||
Patents & trade secrets | 15-17 | 1,665 | 933 | 1,593 | 849 | ||||||||||||||||
Other | 10-May | 754 | 587 | 754 | 541 | ||||||||||||||||
$ | 206,779 | $ | 46,385 | $ | 42,043 | $ | 26,917 | ||||||||||||||
Amortization of identifiable intangible assets was $19,468, $3,976 and $3,969 for 2014, 2013 and 2012, respectively. Assuming no change in the gross carrying value of identifiable intangible assets, the estimated amortization expense is approximately $26,490 in 2015, $24,300 in 2016, $20,345 in 2017, $18,085 in 2018 and $16,285 in 2019. At December 31, 2014 and 2013, there were no identifiable intangible assets with indefinite useful lives as defined by ASC 350, “Intangibles-Goodwill and Other.” Identifiable intangible assets are reflected in the Company’s consolidated balance sheets under Intangible assets with finite lives, net. There were no changes to the useful lives of intangible assets subject to amortization in 2014 and 2013. | |||||||||||||||||||||
At December 31, 2014, the gross carrying amount included customer relationships, trademarks & trade names and developed technology acquired as part of the Performance Chemicals & Ingredients acquisition in 2014. | |||||||||||||||||||||
The Federal Insecticide, Fungicide and Rodenticide Act, (“FIFRA”), a health and safety statute, requires that certain products within our specialty products segment must be registered with the U.S. Environmental Protection Agency (“EPA”) because they are considered pesticides. Costs of such registration are included as regulatory registration costs in the table above. |
LONG_TERM_DEBT
LONG TERM DEBT | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
LONG TERM DEBT [Abstract] | |||||||||||||||||||||
LONG TERM DEBT | NOTE 7 – LONG TERM DEBT | ||||||||||||||||||||
On May 7, 2014, the Company and a bank syndicate entered into a loan agreement providing for a senior secured term loan of $350,000 and revolving loan of $100,000 (collectively referred to as the “loans”). The term loan and $50,000 of the revolving loan were used to fund the Performance Chemicals & Ingredients Company acquisition (see Note 2) and for general corporate purposes. At December 31, 2014, the Company had a total of $332,500 of debt outstanding. The term loan is payable in quarterly installments of $8,750 commencing on September 30, 2014, with the outstanding principal due on the maturity date. The Company may draw on the revolving loan at its discretion and the revolving loan does not have installments and all outstanding amounts are due on the maturity date. The loans may be voluntarily prepaid in whole or in part without premium or penalty and have a maturity date of May 7, 2019. The loans are subject to an interest rate equal to LIBOR or a fluctuating rate as defined by the loan agreement, at the Company’s discretion; plus an applicable rate. The applicable rate is based upon the Company’s consolidated leverage ratio, as defined in the loan agreement, and the interest rate was 1.92% at December 31, 2014. The Company has $100,000 of undrawn revolving loan at December 31, 2014 that is subject to a commitment fee; which is based on the Company’s consolidated leverage ratio as defined in the loan agreement. The loan agreement contains quarterly covenants requiring the consolidated leverage ratio to be less than a certain maximum ratio and the consolidated fixed charge coverage ratio to exceed a certain minimum ratio. At December 31, 2014, the Company was in compliance with these covenants. Indebtedness under the Company’s loan agreements are secured by assets of the company. | |||||||||||||||||||||
The following table summarizes the future minimum debt payments: | |||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | |||||||||||||||||
Current portion of long-term debt | $ | 35,000 | - | - | - | - | |||||||||||||||
Long-term debt | - | $ | 35,000 | $ | 35,000 | $ | 35,000 | $ | 192,500 | ||||||||||||
Total | $ | 35,000 | $ | 35,000 | $ | 35,000 | $ | 35,000 | $ | 192,500 | |||||||||||
Costs associated with the issuance of debt instruments are capitalized and amortized over the terms of the respective financing arrangements using the effective interest method. If debt is retired early, the related unamortized costs are expensed in the period the debt is retired. Capitalized costs net of accumulated amortization total $2,139 at December 31, 2014, of which $603 is included in other current assets and $1,536 is included in other assets. Amortization expense pertaining to these costs totaled $457 for the year ended December 31, 2014 and is included in interest expense in the accompanying condensed consolidated statements of earnings. | |||||||||||||||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
INCOME TAXES [Abstract] | |||||||||||||
INCOME TAXES | NOTE 8 - INCOME TAXES | ||||||||||||
Income tax expense consists of the following: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | 25,937 | $ | 18,366 | $ | 17,748 | |||||||
Foreign | 2,141 | 1,418 | 1,080 | ||||||||||
State | 2,412 | 1,475 | 1,104 | ||||||||||
Deferred: | |||||||||||||
Federal | (5,772 | ) | (75 | ) | (332 | ) | |||||||
Foreign | 85 | 74 | 148 | ||||||||||
State | (577 | ) | (314 | ) | 91 | ||||||||
Total income tax provision | $ | 24,226 | $ | 20,944 | $ | 19,839 | |||||||
The provision for income taxes differs from the amount computed by applying the Federal statutory rate of 35% to earnings before income tax expense due to the following: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income tax at Federal statutory rate | $ | 26,968 | $ | 23,036 | $ | 20,945 | |||||||
State income taxes, net of Federal income taxes | 1,182 | 908 | 659 | ||||||||||
Domestic production activities deduction | (2,567 | ) | (1,804 | ) | (1,775 | ) | |||||||
Other | (1,357 | ) | (1,196 | ) | 10 | ||||||||
Total income tax provision | $ | 24,226 | $ | 20,944 | $ | 19,839 | |||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2014 and 2013 were as follows: | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Inventories | $ | 1,774 | $ | 608 | |||||||||
Restricted stock and stock options | 4,716 | 4,590 | |||||||||||
Other | 4,019 | 758 | |||||||||||
Total deferred tax assets | 10,509 | 5,956 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Amortization | $ | 60,056 | $ | 3,031 | |||||||||
Depreciation | 17,969 | 6,978 | |||||||||||
Prepaid expense | 932 | 542 | |||||||||||
Other | 563 | 396 | |||||||||||
Total deferred tax liabilities | 79,520 | 10,947 | |||||||||||
Net deferred tax liability | $ | 69,011 | $ | 4,991 | |||||||||
There is no valuation allowance for deferred tax assets at December 31, 2014 and 2013. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not the Company will realize the benefits of these deductible differences. The amount of deferred tax asset realizable, however, could change if management’s estimate of future taxable income should change. | |||||||||||||
Provisions of ASC 740-10 clarify whether or not to recognize assets or liabilities for tax positions taken that may be challenged by a tax authority. A reconciliation of the beginning and ending amount of unrecognized tax benefits, which is included in other long-term obligations on the Company’s consolidated balance sheets, is as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at beginning of period | $ | 3,076 | $ | 2,292 | $ | 2,021 | |||||||
Increases for tax positions of prior years | 1,922 | 445 | 116 | ||||||||||
Decreases for tax positions of prior years | (417 | ) | (166 | ) | (224 | ) | |||||||
Increases for tax positions related to current year | 624 | 505 | 379 | ||||||||||
Balance at end of period | $ | 5,205 | $ | 3,076 | $ | 2,292 | |||||||
All of the Company’s unrecognized tax benefits, if recognized in future periods, would impact the Company’s effective tax rate in such future periods. | |||||||||||||
The Company recognizes both interest and penalties as part of the income tax provision. During the years ended December 31, 2014, 2013 and 2012, the Company recognized approximately $37, $130 and $40 in interest and penalties, respectively. As of December 31, 2014 and 2013, accrued interest and penalties were $1,643 and $1,052, respectively. | |||||||||||||
The Company files income tax returns in the U.S. and in various states and foreign countries. In the major jurisdictions where the Company operates, it is generally no longer subject to income tax examinations by tax authorities for years before 2010. The Company does not anticipate any material change in the total amount of unrecognized tax benefits to occur within the next twelve months. |
NET_EARNINGS_PER_COMMON_SHARE
NET EARNINGS PER COMMON SHARE | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
NET EARNINGS PER COMMON SHARE [Abstract] | |||||||||||||
NET EARNINGS PER COMMON SHARE | NOTE 9 - NET EARNINGS PER COMMON SHARE | ||||||||||||
The following presents a reconciliation of the net earnings and shares used in calculating basic and diluted net earnings per common share: | |||||||||||||
2014 | Earnings | Number of Shares | Per Share Amount | ||||||||||
(Numerator) | (Denominator) | ||||||||||||
Basic EPS – Net earnings and weighted average common shares outstanding | $ | 52,826 | 30,381,310 | $ | 1.74 | ||||||||
Effect of dilutive securities – stock options and restricted stock | 790,412 | ||||||||||||
Diluted EPS – Net earnings and weighted average common shares outstanding and effect of stock options and restricted stock | $ | 52,826 | 31,171,722 | $ | 1.69 | ||||||||
Earnings | Number of Shares | Per Share Amount | |||||||||||
2013 | (Numerator) | (Denominator) | |||||||||||
Basic EPS – Net earnings and weighted average common shares outstanding | $ | 44,874 | 29,623,952 | $ | 1.51 | ||||||||
Effect of dilutive securities – stock options and restricted stock | 1,223,183 | ||||||||||||
Diluted EPS – Net earnings and weighted average common shares outstanding and effect of stock options and restricted stock | $ | 44,874 | 30,847,135 | $ | 1.45 | ||||||||
Earnings | Number of Shares | Per Share Amount | |||||||||||
2012 | (Numerator) | (Denominator) | |||||||||||
Basic EPS – Net earnings and weighted average common shares outstanding | $ | 40,005 | 28,994,212 | $ | 1.38 | ||||||||
Effect of dilutive securities – stock options and restricted stock | 1,358,364 | ||||||||||||
Diluted EPS – Net earnings and weighted average common shares outstanding and effect of stock options and restricted stock | $ | 40,005 | 30,352,576 | $ | 1.32 | ||||||||
The Company had 56,500, 10,000 and 282,027 stock options outstanding at December 31, 2014, 2013 and 2012, respectively that could potentially dilute basic earnings per share in future periods that were not included in diluted earnings per share because their effect on the period presented was anti-dilutive. | |||||||||||||
The Company has some share-based payment awards that have non-forfeitable dividend rights. These awards are restricted shares and they participate on a one-for-one basis with holders of Common Stock. These awards have an immaterial impact as participating securities with regard to the calculation using the two-class method for determining earnings per share. |
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS [Abstract] | ||||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | NOTE 10 - EMPLOYEE BENEFIT PLANS | |||||||||||||||||||||||
The Company sponsors two 401(k) savings plans for eligible employees. The plans allows participants to make pretax contributions and the Company matches certain percentages of those pretax contributions. One of the plans has a discretionary profit sharing portion and the Company match is made with shares of the Company’s Common Stock. All amounts contributed to the plan are deposited into a trust fund administered by independent trustees. The plans were merged in January 2015. The Company provided for profit sharing contributions and matching 401(k) savings plan contributions of $938 and $804 in 2014, $918 and $525 in 2013 and $837 and $508 in 2012, respectively. | ||||||||||||||||||||||||
The Company also provides postretirement benefits in the form of an unfunded retirement medical plan under a collective bargaining agreement covering eligible retired employees of the Verona facility. The Company uses a December 31 measurement date for its postretirement medical plan. In accordance with ASC 715, “Compensation—Retirement Benefits,” the Company is required to recognize the over funded or under funded status of a defined benefit post retirement plan (other than a multiemployer plan) as an asset or liability in its statement of financial position, and to recognize changes in that funded status in the year in which the changes occur through comprehensive income. | ||||||||||||||||||||||||
The actuarial recorded liabilities for such unfunded postretirement benefit is as follows: | ||||||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 1,152 | $ | 1,301 | ||||||||||||||||||||
Service cost with interest to end of year | 57 | 67 | ||||||||||||||||||||||
Interest cost | 48 | 42 | ||||||||||||||||||||||
Participant contributions | 3 | 1 | ||||||||||||||||||||||
Benefits paid* | 42 | (97 | ) | |||||||||||||||||||||
Actuarial gain | (191 | ) | (162 | ) | ||||||||||||||||||||
Benefit obligation at end of year | $ | 1,111 | $ | 1,152 | ||||||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | - | $ | - | ||||||||||||||||||||
Employer (reimbursement)/contributions* | (45 | ) | 96 | |||||||||||||||||||||
Participant contributions | 3 | 1 | ||||||||||||||||||||||
Benefits paid* | 42 | (97 | ) | |||||||||||||||||||||
Fair value of plan assets at end of year | $ | - | $ | - | ||||||||||||||||||||
*Stop loss reimbursement credit received in 2014. | ||||||||||||||||||||||||
Amounts recognized in consolidated balance sheet: | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Accumulated postretirement benefit obligation | $ | (1,111 | ) | $ | (1,152 | ) | ||||||||||||||||||
Fair value of plan assets | - | - | ||||||||||||||||||||||
Funded status | (1,111 | ) | (1,152 | ) | ||||||||||||||||||||
Unrecognized prior service cost | N/ | A | N/ | A | ||||||||||||||||||||
Unrecognized net (gain)/loss | N/ | A | N/ | A | ||||||||||||||||||||
Net amount recognized in consolidated balance sheet (after ASC 715) (included in other long-term obligations) | $ | 1,111 | $ | 1,152 | ||||||||||||||||||||
Accrued postretirement benefit cost (included in other long-term obligations) | $ | N/ | A | $ | N/ | A | ||||||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Service cost with interest to end of year | $ | 57 | $ | 67 | $ | 53 | ||||||||||||||||||
Interest cost | 48 | 42 | 41 | |||||||||||||||||||||
Amortization of prior service credit | (18 | ) | (18 | ) | (18 | ) | ||||||||||||||||||
Amortization of gain | 6 | 17 | 4 | |||||||||||||||||||||
Total net periodic benefit cost | $ | 93 | $ | 108 | $ | 80 | ||||||||||||||||||
Estimated future employer contributions and benefit payments are as follows: | ||||||||||||||||||||||||
Year | ||||||||||||||||||||||||
2015 | $ | 21 | ||||||||||||||||||||||
2016 | 34 | |||||||||||||||||||||||
2017 | 45 | |||||||||||||||||||||||
2018 | 75 | |||||||||||||||||||||||
2019 | 101 | |||||||||||||||||||||||
Years 2020-2024 | 407 | |||||||||||||||||||||||
Assumed health care cost trend rates have been used in the valuation of postretirement health insurance benefits. The trend rate is 7.55% in 2014 declining to 4.50% in 2027 and thereafter. A one percentage point increase in health care cost trend rates in each year would increase the accumulated postretirement benefit obligation as of December 31, 2014 by $122 and the net periodic postretirement benefit cost for 2014 by $15. A one percentage point decrease in health care cost trend rates in each year would decrease the accumulated postretirement benefit obligation as of December 31, 2014 by $106 and the net periodic postretirement benefit cost for 2014 by $13. The weighted average discount rate used in determining the accumulated postretirement benefit obligation was 3.30% in 2014 and 4.20% in 2013. | ||||||||||||||||||||||||
The Company contributes to one multiemployer defined benefit plan under the terms of a collective-bargaining agreement covering its union-represented employees of the Verona facility. The risks of participation in this multiemployer plan are different from single-employer plans in the following aspects: (a) assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers, (b) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers, and (c) if the Company chooses to stop participating in its multiemployer plan, the Company will be required to pay that plan an amount based on the underfunded status of the plan, referred to as the withdrawal liability. | ||||||||||||||||||||||||
The Company’s participation in this plan for the annual period ended December 31, 2014 is outlined in the table below. The “EIN/Pension Plan Number” column provides the Employee Identification Number (EIN). The zone status is based on information that the Company received from the plan and is certified by the plan’s actuary. Among other factors, plans in the red zone are generally less than 65 percent funded, plans in the yellow zone are less than 80 percent funded, and plans in the green zone are at least 80 percent funded. The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented. The last column lists the expiration date of the collective-bargaining agreement to which the plan is subject. Finally, the period-to-period comparability of the contributions for 2014 and 2013 was affected by a 4.5% increase in the number of employees covered by the Company’s multiemployer plan as well as a 4.0% increase in the 2014 contribution rate. There have been no other significant changes that affect the comparability of 2014 and 2013 contributions. The Company does not represent more than 5% of the contributions to this pension fund. | ||||||||||||||||||||||||
EIN/Pension Plan | Pension Plan Protection Act Zone Status | Contributions of Balchem Corporation | Surcharge Imposed | Expiration Date of Collective-Bargaining Agreement | ||||||||||||||||||||
Pension Fund | Number | FIP/RP Status Pending/ | ||||||||||||||||||||||
2014 | 2013 | Implemented | 2014 | 2013 | 2012 | |||||||||||||||||||
Central States, Southeast and Southwest Areas | 36-6044243 | Red as of 1/1/2014 | Red as of 1/1/2013 | Implemented | $ | 498 | $ | 451 | $ | 415 | - | 5/31/17 |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
COMMITMENTS AND CONTINGENCIES [Abstract] | |||||
COMMITMENTS AND CONTINGENCIES | NOTE 11 - COMMITMENTS AND CONTINGENCIES | ||||
In 2012, the Company entered into a six (6) year lease extension for approximately 20,000 square feet of office space. The office space serves as the Company’s general offices and as a laboratory facility. The Company leases most of its vehicles and office equipment under non-cancelable operating leases, which expire at various times through 2029. Rent expense charged to operations under such lease agreements for 2014, 2013 and 2012 aggregated approximately $1,595, $1,040 and $965, respectively. Aggregate future minimum rental payments required under non-cancelable operating leases at December 31, 2014 are as follows: | |||||
Year | |||||
2015 | $ | 1,811 | |||
2016 | 1,430 | ||||
2017 | 1,170 | ||||
2018 | 923 | ||||
2019 | 448 | ||||
Thereafter | 2,103 | ||||
Total minimum lease payments | $ | 7,885 | |||
In 1982, the Company discovered and thereafter removed a number of buried drums containing unidentified waste material from the Company’s site in Slate Hill, New York. The Company thereafter entered into a Consent Decree to evaluate the drum site with the New York Department of Environmental Conservation (“NYDEC”) and performed a Remedial Investigation/Feasibility Study that was approved by NYDEC in February 1994. Based on NYDEC requirements, the Company cleaned the area and removed soil from the drum burial site, which was completed in 1996. The Company continues to be involved in discussions with NYDEC to evaluate test results and determine what, if any, additional actions will be required on the part of the Company to close out the remediation of this site. Additional actions, if any, would likely require the Company to continue monitoring the site. The cost of such monitoring has been less than $5 per year for the period 2004 to date. | |||||
The Company’s Verona, Missouri facility, while held by a prior owner, was designated by the EPA as a Superfund site and placed on the National Priorities List in 1983, because of dioxin contamination on portions of the site. Remediation conducted by the prior owner under the oversight of the EPA and the Missouri Department of Natural Resources (“MDNR”) included removal of dioxin contaminated soil and equipment, capping of areas of residual contamination in four relatively small areas of the site separate from the manufacturing facilities, and the installation of wells to monitor groundwater and surface water contamination by organic chemicals. No ground water or surface water treatment was required. The Company believes that remediation of the site is complete. In 1998, the EPA certified the work on the contaminated soils to be complete. In February 2000, after the conclusion of two years of monitoring groundwater and surface water, the former owner submitted a draft third party risk assessment report to the EPA and MDNR recommending no further action. The prior owner is awaiting the response of the EPA and MDNR to the draft risk assessment. | |||||
While the Company must maintain the integrity of the capped areas in the remediation areas on the site, the prior owner is responsible for completion of any further Superfund remedy. The Company is indemnified by the sellers under its May 2001 asset purchase agreement covering its acquisition of the Verona, Missouri facility for potential liabilities associated with the Superfund site and one of the sellers, in turn, has the benefit of certain contractual indemnification by the prior owner that is implementing the above-described Superfund remedy. | |||||
From time to time, the Company is a party to various litigation, claims and assessments. Management believes that the ultimate outcome of such matters will not have a material effect on the Company’s consolidated financial position, results of operations, or liquidity. |
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2014 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 12 – FAIR VALUE OF FINANCIAL INSTRUMENTS |
The Company has a number of financial instruments, none of which are held for trading purposes. The Company estimates that the fair value of all financial instruments at December 31, 2014 and December 31, 2013 does not differ materially from the aggregate carrying values of its financial instruments recorded in the accompanying consolidated balance sheets. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. Considerable judgment is necessarily required in interpreting market data to develop the estimates of fair value, and, accordingly, the estimates are not necessarily indicative of the amounts that the Company could realize in a current market exchange. The carrying value of debt approximates fair value as the interest rate is based on market and the Company’s consolidated leverage ratio. The Company’s financial instruments, also include cash equivalents, accounts receivable, accounts payable and accrued liabilities, and carried at cost which approximates fair value due to the short-term maturity of these instruments. Cash and cash equivalents at December 31, 2014 and 2013, includes $772 and $50,764 in money market funds, respectively and $-0- and $109,000 in certificates of deposits, respectively. The money market funds and certificates of deposit are valued using level one and level two inputs, respectively, as defined by ASC 820, “Fair Value Measurement.” | |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME [Abstract] | |||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME | NOTE 13 – ACCUMULATED OTHER COMPREHENSIVE INCOME | ||||||||||||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” (“ASU 2013-02”). This guidance is the culmination of the FASB’s deliberation on reporting reclassification adjustments from accumulated other comprehensive income (“AOCI”). The amendments in ASU 2013-02 do not change the current requirements for reporting net income or other comprehensive income. However, the amendments require disclosure of amounts reclassified out of AOCI in its entirety, by component, on the face of the statement of operations or in the notes thereto. Amounts that are not required to be reclassified in their entirety to net income must be cross-referenced to other disclosures that provide additional detail. This standard is effective prospectively for annual and interim reporting periods beginning after December 15, 2012. Other than the additional disclosure requirements (see below), the adoption of these changes had no impact on the Company’s consolidated financial statements. | |||||||||||||
The changes in accumulated other comprehensive income (loss) were as follows: | |||||||||||||
Years Ended | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net foreign currency translation adjustment | $ | (2,972 | ) | $ | 856 | $ | 342 | ||||||
Net change in postretirement benefit plan (see Note 10 for further information) | |||||||||||||
Net (loss)/gain arising during the period | 191 | 162 | (235 | ) | |||||||||
Amortization of prior service credit | (18 | ) | (18 | ) | (18 | ) | |||||||
Amortization of (loss)/gain | 6 | 17 | 4 | ||||||||||
Total before tax | 179 | 161 | (249 | ) | |||||||||
Tax | (56 | ) | (60 | ) | 86 | ||||||||
Net of tax | 123 | 101 | (163 | ) | |||||||||
Total other comprehensive income (loss) | $ | (2,849 | ) | $ | 957 | $ | 179 |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
SEGMENT INFORMATION [Abstract] | |||||||||||||
SEGMENT INFORMATION | NOTE 14 - SEGMENT INFORMATION | ||||||||||||
The Company’s reportable segments are strategic businesses that offer products and services to different markets. The Company presently has three segments: SensoryEffects; Animal Nutrition & Health; and Specialty Products. Our SensoryEffects segment supplies ingredients in the food and beverage industry; providing customized solutions in powder and liquid flavor delivery systems, spray dried emulsified powder systems, and cereal systems. This segment provides microencapsulation solutions to a variety of applications in food, pharmaceutical and nutritional ingredients to enhance performance of nutritional fortification, processing and packaging applications and shelf-life. Human grade choline, pharmaceutical products and encapsulated products are also reported in the SensoryEffects segment. The Animal Nutrition & Health segment manufactures and supplies choline chloride, an essential nutrient for animal health, to the poultry, pet and swine industries. In addition, certain derivatives of choline chloride are manufactured and sold into industrial applications and are included in this segment. Chelated minerals and specialty nutritional products for the animal health industry are also reported in this segment. The Specialty Products segment provides specialty-packaged chemicals for use in healthcare and other industries. The Company sells products for all segments through its own sales force, independent distributors, and sales agents. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. | |||||||||||||
Business Segment Net Sales: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Specialty Products | 54,053 | $ | 51,086 | $ | 49,990 | ||||||||
SensoryEffects | 206,101 | 47,569 | 44,070 | ||||||||||
Animal Nutrition & Health | 281,229 | 238,518 | 216,333 | ||||||||||
Total | 541,383 | $ | 337,173 | $ | 310,393 | ||||||||
Business Segment Earnings Before Income Taxes: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Specialty Products | $ | 21,316 | $ | 20,224 | $ | 20,332 | |||||||
SensoryEffects | 21,260 | 11,233 | 11,335 | ||||||||||
Animal Nutrition & Health | 40,219 | 34,145 | 28,110 | ||||||||||
Transaction costs, integration costs and legal settlement | (652 | ) | - | - | |||||||||
Interest and other income, net | (5,091 | ) | 216 | 67 | |||||||||
Total | $ | 77,052 | $ | 65,818 | $ | 59,844 | |||||||
Depreciation/Amortization: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Specialty Products | $ | 1,330 | $ | 1,386 | $ | 1,369 | |||||||
SensoryEffects | 21,031 | 1,356 | 1,444 | ||||||||||
Animal Nutrition & Health | 7,706 | 7,732 | 6,828 | ||||||||||
Total | $ | 30,067 | $ | 10,474 | $ | 9,641 | |||||||
Business Segment Assets: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Specialty Products | $ | 24,913 | $ | 24,850 | $ | 26,964 | |||||||
SensoryEffects | 655,870 | 22,343 | 21,393 | ||||||||||
Animal Nutrition & Health | 122,980 | 116,710 | 116,035 | ||||||||||
Other Unallocated | 57,508 | 212,969 | 148,153 | ||||||||||
Total | $ | 861,271 | $ | 376,872 | $ | 312,545 | |||||||
Other unallocated assets consist of certain cash, receivables, prepaid expenses, equipment and leasehold improvements, net of accumulated depreciation, and deferred income taxes, which the Company does not allocate to its individual business segments. | |||||||||||||
Capital Expenditures: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Specialty Products | $ | 896 | $ | 725 | $ | 836 | |||||||
SensoryEffects | 3,342 | 1,318 | 924 | ||||||||||
Animal Nutrition & Health | 8,961 | 6,144 | 12,123 | ||||||||||
Total | $ | 13,199 | $ | 8,187 | $ | 13,883 | |||||||
Geographic Revenue Information: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | 420,324 | $ | 227,651 | $ | 207,490 | |||||||
Foreign Countries | 121,059 | 109,522 | 102,903 | ||||||||||
Total | $ | 541,383 | $ | 337,173 | $ | 310,393 | |||||||
Geographic Area Data – Long-Lived Assets (excluding intangible assets): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | 121,090 | $ | 43,078 | $ | 41,183 | |||||||
Italy | 10,498 | 11,838 | 11,542 | ||||||||||
Total | $ | 131,588 | $ | 54,916 | $ | 52,725 |
SUPPLEMENTAL_CASH_FLOW_INFORMA
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION [Abstract] | |||||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | NOTE 15 - SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||||||
Cash paid during the year for: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income taxes | $ | 25,304 | $ | 12,096 | $ | 14,836 | |||||||
Interest | $ | 4,685 | $ | 40 | $ | 6 | |||||||
Non-cash financing activities: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Dividends payable | $ | 9,251 | $ | 7,856 | $ | - |
QUARTERLY_FINANCIAL_INFORMATIO
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) [Abstract] | |||||||||||||||||||||||||||||||||
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | NOTE 16 - QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | ||||||||||||||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||||||||||||||
Net sales | $ | 85,995 | $ | 132,230 | $ | 160,490 | $ | 162,668 | $ | 84,651 | $ | 83,296 | $ | 87,593 | $ | 81,633 | |||||||||||||||||
Gross profit | 23,215 | 32,335 | 44,487 | 44,135 | 24,232 | 24,885 | 24,522 | 23,782 | |||||||||||||||||||||||||
Earnings before income taxes | 13,372 | 15,291 | 23,209 | 25,180 | 15,863 | 16,682 | 17,060 | 16,213 | |||||||||||||||||||||||||
Net earnings | 8,894 | 9,732 | 15,178 | 19,022 | 10,888 | 11,582 | 11,657 | 10,747 | |||||||||||||||||||||||||
Basic net earnings per common share | $ | 0.3 | $ | 0.32 | $ | 0.5 | $ | 0.62 | $ | 0.37 | $ | 0.39 | $ | 0.39 | $ | 0.36 | |||||||||||||||||
Diluted net earnings per common share | $ | 0.29 | $ | 0.31 | $ | 0.49 | $ | 0.61 | $ | 0.36 | $ | 0.38 | $ | 0.38 | $ | 0.35 |
Schedule_II_Valuation_and_Qual
Schedule II Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Schedule II - Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | BALCHEM CORPORATION | ||||||||||||||||
Valuation and Qualifying Accounts | |||||||||||||||||
Years Ended December 31, 2014, 2013 and 2012 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Description | Balance at Beginning of Year | Additions Charged (Credited) to Costs and Expenses | Deductions | Balance at End of Year | |||||||||||||
Year ended December 31, 2014 | |||||||||||||||||
Allowance for doubtful accounts | $ | 115 | $ | 238 | $ | (65 | )(a) | $ | 288 | ||||||||
Inventory reserve | 181 | - | - | 181 | |||||||||||||
Year ended December 31, 2013 | |||||||||||||||||
Allowance for doubtful accounts | $ | 115 | $ | - | $ | - | $ | 115 | |||||||||
Inventory reserve | 236 | 97 | (152 | )(a) | 181 | ||||||||||||
Year ended December 31, 2012 | |||||||||||||||||
Allowance for doubtful accounts | $ | 58 | $ | 57 | $ | - | $ | 115 | |||||||||
Inventory reserve | 132 | 142 | (38 | )(a) | 236 | ||||||||||||
(a) represents write-offs. |
BUSINESS_DESCRIPTION_AND_SUMMA1
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||
Principles of Consolidation | Principles of Consolidation | ||||||||
The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. | |||||||||
Revenue Recognition | Revenue Recognition | ||||||||
Revenue for each of our business segments is recognized upon product shipment, passage of title and risk of loss, and when collection is reasonably assured. The Company reports amounts billed to customers related to shipping and handling as revenue and includes costs incurred for shipping and handling in cost of sales. Amounts received for unshipped merchandise are not recognized as revenue but rather they are recorded as customer deposits and are included in current liabilities. In instances of shipments made on consignment, revenue is deferred until a customer indicates to the Company that it has used the Company’s products. The Company does not charge its customers rental fees on cylinders or drums used to ship its products. | |||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||||||||
The Company considers all highly liquid investments with a maturity of three months or less to be cash equivalents. The Company has funds in its cash accounts that are with third party financial institutions, primarily in certificates of deposit and money market funds. The Company’s U.S. cash balances at these financial institutions exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance limits. | |||||||||
Accounts Receivable | Accounts Receivable | ||||||||
Credit terms are granted in the normal course of business to our customers. On-going credit evaluations are performed on our customers and credit limits are adjusted based upon payment history and the customer's current credit worthiness, as determined through review of their current credit information. Collections and payments from customers are continuously monitored and allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments are maintained. Estimated losses are based on historical experience and any specific customer collection issues identified. | |||||||||
Inventories | Inventories | ||||||||
Inventories are valued at the lower of cost (first in, first out or average) or market value and have been reduced by an allowance for excess or obsolete inventories. Cost elements include material, labor and manufacturing overhead. | |||||||||
Property, Plant and Equipment and Depreciation | Property, Plant and Equipment and Depreciation | ||||||||
Property, plant and equipment are stated at cost. Depreciation of plant and equipment is calculated using the straight-line method over the estimated useful lives of the assets as follows: | |||||||||
Buildings | 15-25 years | ||||||||
Equipment | 2-28 years | ||||||||
Expenditures for repairs and maintenance are charged to expense. Alterations and major overhauls that extend the lives or increase the capacity of plant assets are capitalized. When assets are retired or otherwise disposed of, the cost of the assets and the related accumulated depreciation are removed from the accounts and any resultant gain or loss is included in earnings. | |||||||||
Business Concentrations | Business Concentrations | ||||||||
Financial instruments that subject the Company to credit risk consist primarily of certificates of deposit, money market investments and accounts receivable. Investments are managed within established guidelines to mitigate risks. Accounts receivable subject the Company to credit risk partially due to the concentration of amounts due from customers. The Company extends credit to its customers based upon an evaluation of the customers’ financial condition and credit histories. The majority of the Company’s customers are major national or international corporations. In 2014, 2013 and 2012, no customer accounted for more than 10% of total net sales. | |||||||||
Goodwill and Acquired Intangible Assets | Goodwill and Acquired Intangible Assets | ||||||||
Goodwill represents the excess of costs over fair value of assets of businesses acquired. ASC 350, “Intangibles-Goodwill and Other,” requires the use of the acquisition method of accounting for a business combination and defines an intangible asset. Goodwill and intangible assets acquired in a business combination and determined to have an indefinite useful life are not amortized, but are instead assessed for impairment annually and more frequently if events and circumstances indicate that the asset might be impaired, in accordance with the provisions of ASC 350. The Company performs its annual test as of October 1. ASC 350 also requires that intangible assets with estimable useful lives be amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment if events and circumstances indicate that the asset might be impaired. | |||||||||
As of December 31, 2012, the Company adopted ASU No. 2011-08, “Intangibles—Goodwill and Other (Topic 350): Testing Goodwill for Impairment” (“ASU 2011-08”). The Company first assesses qualitative factors to determine whether it is “more likely than not” (i.e. a likelihood of more than 50%) that the fair values of our reporting units are less than their respective carrying amounts, including goodwill, as a basis for determining whether it is necessary to perform the two step goodwill impairment test. If determined to be necessary, the two step impairment test shall be used to identify potential goodwill impairment and measure the amount of a goodwill impairment loss to be recognized (if any). The Company has an unconditional option to bypass the qualitative assessment and proceed directly to performing the first step of the goodwill impairment test. | |||||||||
As of October 1, 2014 and 2013, the Company opted to bypass the qualitative assessment and proceeded directly to performing the first step of the goodwill impairment test. We assessed the fair values of our reporting units by utilizing the income approach, based on a discounted cash flow valuation model as the basis for our conclusions. Our estimates of future cash flows included significant management assumptions such as revenue growth rates, operating margins, discount rates, estimated terminal values and future economic and market conditions. Our assessment concluded that the fair values of the three reporting units exceeded their carrying amounts, including goodwill. Accordingly, the goodwill of the three reporting units is not considered impaired. The Company may resume performing the qualitative assessment in subsequent periods. | |||||||||
The Company had unamortized goodwill in the amount of $383,646 and $28,515 at December 31, 2014 and December 31, 2013, respectively, subject to the provisions of ASC 350. Unamortized goodwill is allocated to the Company’s reportable segments as follows: | |||||||||
2014 | 2013 | ||||||||
Specialty Products | $ | 7,160 | $ | 7,160 | |||||
SensoryEffects | 363,524 | 8,393 | |||||||
Animal Nutrition and Health | 12,962 | 12,962 | |||||||
Total | $ | 383,646 | $ | 28,515 | |||||
The following intangible assets with finite lives are stated at cost and are amortized either on an accelerated basis or on a straight-line basis over the following estimated useful lives: | |||||||||
Amortization Period | |||||||||
(in years) | |||||||||
Customer relationships and lists | 10 | ||||||||
Trademarks & trade names | 17 | ||||||||
Developed technology | 5 | ||||||||
Regulatory registration costs | 5 - 10 | ||||||||
Patents & trade secrets | 15 - 17 | ||||||||
Other | 5 - 10 | ||||||||
For the year ended December 31, 2014, there were no triggering events which required asset impairment reviews. | |||||||||
Income Taxes | Income Taxes | ||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | |||||||||
Use of Estimates | Use of Estimates | ||||||||
Management of the Company is required to make certain estimates and assumptions during the preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States of America. These estimates and assumptions impact the reported amount of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and revenues and expenses during the reporting period. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the consolidated financial statements in the period they are determined to be necessary. Actual results could differ from those estimates. | |||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | ||||||||
The Company has a number of financial instruments, none of which are held for trading purposes. The Company estimates that the fair value of all financial instruments at December 31, 2014 and 2013 does not differ materially from the aggregate carrying values of its financial instruments recorded in the accompanying consolidated balance sheets. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. Considerable judgment is necessarily required in interpreting market data to develop the estimates of fair value, and, accordingly, the estimates are not necessarily indicative of the amounts that the Company could realize in a current market exchange. The carrying value of debt approximates fair value as the interest rate is based on market and the Company’s consolidated leverage ratio. The Company’s financial instruments also includes cash equivalents, accounts receivable, accounts payable and accrued liabilities, and are carried at cost which approximates fair value due to the short-term maturity of these instruments. | |||||||||
Cost of Sales | Cost of Sales | ||||||||
Cost of sales are primarily comprised of raw materials and supplies consumed in the manufacture of product, as well as manufacturing labor, maintenance labor, depreciation expense, and direct overhead expense necessary to convert purchased materials and supplies into finished product. Cost of sales also includes inbound freight costs, outbound freight costs for shipping products to customers, warehousing costs, quality control and obsolescence expense. | |||||||||
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses | ||||||||
Selling expenses consist primarily of compensation and benefit costs, amortization of customer relationships and lists, trade promotions, advertising, commissions and other marketing costs. General and administrative expenses consist primarily of payroll and benefit costs, occupancy and operating costs of corporate offices, depreciation and amortization expense on non-manufacturing assets, information systems costs and other miscellaneous administrative costs. In 2014, general and administrative expenses were reduced by a $2.9 million net legal settlement. | |||||||||
Research and Development | Research and Development | ||||||||
Research and development costs are expensed as incurred. | |||||||||
Net Earnings Per Common Share | Net Earnings Per Common Share | ||||||||
Basic net earnings per common share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net earnings per common share is calculated in a manner consistent with basic net earnings per common share except that the weighted average number of common shares outstanding also includes the dilutive effect of stock options outstanding and unvested restricted stock (using the treasury stock method). | |||||||||
Stock-based Compensation | Stock-based Compensation | ||||||||
The Company has stock-based employee compensation plans, which are described more fully in Note 3. The Company accounts for stock-based compensation in accordance with ASC 718, “Compensation-Stock Compensation,” which requires all share-based payments, including grants of stock options, to be recognized in the income statement as an operating expense, based on their fair values. The Company estimates the fair value of each option award on the date of grant using a Black-Scholes based option-pricing model. Estimates of and assumptions about forfeiture rates, terms, volatility, interest rates and dividend yields are used to calculate stock-based compensation. A significant change to these estimates could materially affect the Company’s operating results. | |||||||||
Impairment of Long-lived Assets | Impairment of Long-lived Assets | ||||||||
Long-lived assets, such as property, plant, and equipment, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset, which is generally based on discounted cash flows. | |||||||||
Reclassifications | Reclassifications | ||||||||
Certain reclassifications have been made to the prior years’ financial statements to conform to the current year’s presentation with no impact on net earnings or stockholders’ equity. |
BUSINESS_DESCRIPTION_AND_SUMMA2
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||
Property, plant and equipment, estimated useful lives | Property, plant and equipment are stated at cost. Depreciation of plant and equipment is calculated using the straight-line method over the estimated useful lives of the assets as follows: | ||||||||
Buildings | 15-25 years | ||||||||
Equipment | 2-28 years | ||||||||
Unamortized goodwill allocated to reportable segments | Unamortized goodwill is allocated to the Company’s reportable segments as follows: | ||||||||
2014 | 2013 | ||||||||
Specialty Products | $ | 7,160 | $ | 7,160 | |||||
SensoryEffects | 363,524 | 8,393 | |||||||
Animal Nutrition and Health | 12,962 | 12,962 | |||||||
Total | $ | 383,646 | $ | 28,515 | |||||
Intangible assets, estimated useful lives | The following intangible assets with finite lives are stated at cost and are amortized either on an accelerated basis or on a straight-line basis over the following estimated useful lives: | ||||||||
Amortization Period | |||||||||
(in years) | |||||||||
Customer relationships and lists | 10 | ||||||||
Trademarks & trade names | 17 | ||||||||
Developed technology | 5 | ||||||||
Regulatory registration costs | 5 - 10 | ||||||||
Patents & trade secrets | 15 - 17 | ||||||||
Other | 5 - 10 |
ACQUISITION_Tables
ACQUISITION (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
ACQUISITIONS [Abstract] | |||||||||||||||||
Estimated fair values of the assets acquired and liabilities assumed | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed. | ||||||||||||||||
Cash and cash equivalents | $ | 2,635 | |||||||||||||||
Accounts receivable | 25,674 | ||||||||||||||||
Inventories | 32,000 | ||||||||||||||||
Property, plant and equipment | 75,850 | ||||||||||||||||
Customer relationships | 130,300 | ||||||||||||||||
Trade names | 31,100 | ||||||||||||||||
Developed technology | 3,200 | ||||||||||||||||
Other assets | 3,955 | ||||||||||||||||
Indemnification asset | 1,650 | ||||||||||||||||
Trade accounts payable | (10,427 | ) | |||||||||||||||
Accrued expenses | (6,326 | ) | |||||||||||||||
Bank debt | (75,550 | ) | |||||||||||||||
Deferred income taxes | (75,500 | ) | |||||||||||||||
Goodwill | 355,131 | ||||||||||||||||
Amount paid to shareholders | 493,692 | ||||||||||||||||
SensoryEffects bank debt paid on purchase date | 75,550 | ||||||||||||||||
Total amount paid on acquisition date | $ | 569,242 | |||||||||||||||
Acquisition of unaudited pro forma information | The following unaudited pro forma information has been prepared as if the Acquisition had occurred on January 1, 2013. | ||||||||||||||||
Year Ended | Year Ended | ||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
Net Sales | Net Earnings | Net Sales | Net Earnings | ||||||||||||||
SensoryEffects actual results included in the Company’s consolidated income statement from May 7, 2014 through December 31, 2014 | $ | 156,192 | $ | 6,632 | $ | -0- | $ | -0- | |||||||||
Supplemental pro forma combined financial information | $ | 625,400 | $ | 61,730 | $ | 545,592 | $ | 41,603 | |||||||||
Basic earnings per share | $ | 2.03 | $ | 1.4 | |||||||||||||
Diluted earnings per share | $ | 1.98 | $ | 1.35 | |||||||||||||
STOCKHOLDERS_EQUITY_Tables
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
STOCKHOLDERS' EQUITY [Abstract] | ||||||||||||||||||
Effect of compensation cost on earnings | The Company’s results for the years ended December 31, 2014, 2013 and 2012 reflected the following compensation cost as a result of adopting ASC 718 and such compensation cost had the following effects on net earnings: | |||||||||||||||||
Increase/(Decrease) for the | ||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Cost of sales | $ | 593 | $ | 607 | $ | 523 | ||||||||||||
Operating expenses | 3,963 | 3,210 | 3,383 | |||||||||||||||
Net earnings | (2,926 | ) | (2,370 | ) | (2,469 | ) | ||||||||||||
Assumptions used in the valuation of option awards | The fair value of each option award issued under the 1999 Stock Plan is estimated on the date of grant using a Black-Scholes based option-pricing model that uses the assumptions noted in the following table. Expected volatilities are based on historical volatility of the Company’s stock. The expected term of the options is based on the Company’s historical experience of employees’ exercise behavior. Dividend yields are based on the Company’s historical dividend yields. Risk-free interest rates are based on the implied yields currently available on U.S. Treasury zero coupon issues with a remaining term equal to the expected life. | |||||||||||||||||
Years Ended | ||||||||||||||||||
2014 | 31-Dec-13 | 2012 | ||||||||||||||||
Weighted Average Assumptions: | ||||||||||||||||||
Expected Volatility | 33.7 | % | 39.2 | % | 40.6 | % | ||||||||||||
Expected Term (in years) | 5.6 | 5 | 4.6 | |||||||||||||||
Risk-Free Interest Rate | 1.8 | % | 1 | % | 0.7 | % | ||||||||||||
Dividend Yield | 0.5 | % | 0.5 | % | 0.5 | % | ||||||||||||
Summary of stock option activity | A summary of stock option plan activity for 2014, 2013, and 2012 for all plans is as follows: | |||||||||||||||||
# of | Weighted Average | |||||||||||||||||
2014 | Shares | Exercise Price | ||||||||||||||||
(000s) | ||||||||||||||||||
Outstanding at beginning of year | 1,893 | $ | 20.94 | |||||||||||||||
Granted | 313 | 53.38 | ||||||||||||||||
Exercised | (610 | ) | 14.92 | |||||||||||||||
Forfeited | (126 | ) | 56.03 | |||||||||||||||
Outstanding at end of year | 1,470 | $ | 27.35 | |||||||||||||||
Exercisable at end of year | 1,066 | $ | 21.52 | |||||||||||||||
# of | Weighted Average | |||||||||||||||||
2013 | Shares (000s) | Exercise Price | ||||||||||||||||
Outstanding at beginning of year | 2,543 | $ | 16.87 | |||||||||||||||
Granted | 177 | 38.73 | ||||||||||||||||
Exercised | (796 | ) | 11.4 | |||||||||||||||
Forfeited | (31 | ) | 33.9 | |||||||||||||||
Outstanding at end of year | 1,893 | $ | 20.94 | |||||||||||||||
Exercisable at end of year | 1,516 | $ | 17.64 | |||||||||||||||
# of | Weighted Average | |||||||||||||||||
2012 | Shares (000s) | Exercise Price | ||||||||||||||||
Outstanding at beginning of year | 2,514 | $ | 14.68 | |||||||||||||||
Granted | 276 | 30.35 | ||||||||||||||||
Exercised | (231 | ) | 8.24 | |||||||||||||||
Forfeited | (16 | ) | 28.53 | |||||||||||||||
Outstanding at end of year | 2,543 | $ | 16.87 | |||||||||||||||
Exercisable at end of year | 2,155 | $ | 14.3 | |||||||||||||||
Other information pertaining to stock option activity | Other information pertaining to option activity during the years ended December 31, 2014, 2013 and 2012 was as follows: | |||||||||||||||||
Years Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Weighted-average fair value of options granted | $ | 17.36 | $ | 13.07 | $ | 10.09 | ||||||||||||
Total intrinsic value of stock options exercised ($000s) | $ | 25,224 | $ | 28,776 | $ | 6,524 | ||||||||||||
Additional information relating to stock options outstanding | Additional information related to stock options outstanding under all plans at December 31, 2014 is as follows: | |||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||
Shares Outstanding (000s) | Weighted | Weighted Average Exercise | Number Exercisable (000s) | Weighted Average Exercise | ||||||||||||||
Range of Exercise Prices | Average | Price | Price | |||||||||||||||
Remaining | ||||||||||||||||||
Contractual | ||||||||||||||||||
Term | ||||||||||||||||||
$ 9.21 - $22.34 | 702 | 3.4 years | $ | 16.09 | 702 | $ | 16.09 | |||||||||||
24.95 - 32.21 | 401 | 6.5 years | 30.68 | 322 | 31.08 | |||||||||||||
33.81 - 58.42 | 367 | 8.7 years | 45.28 | 42 | 39.19 | |||||||||||||
1,470 | 5.6 years | $ | 27.35 | 1,066 | $ | 21.52 | ||||||||||||
Non-vested restricted stock activity | Non-vested restricted stock activity for the years ended December 31, 2014, 2013 and 2012 is summarized below: | |||||||||||||||||
Shares (000s) | Weighted Average Grant Date Fair | |||||||||||||||||
Value | ||||||||||||||||||
Non-vested balance as of December 31, 2013 | 172 | $ | 33.69 | |||||||||||||||
Granted | 33 | 54.86 | ||||||||||||||||
Vested | (65 | ) | 34.19 | |||||||||||||||
Forfeited | (6 | ) | 45.32 | |||||||||||||||
Non-vested balance as of December 31, 2014 | 134 | $ | 38.13 | |||||||||||||||
Shares (000s) | Weighted Average Grant Date Fair | |||||||||||||||||
Value | ||||||||||||||||||
Non-vested balance as of December 31, 2012 | 258 | $ | 26.88 | |||||||||||||||
Granted | 32 | 44.69 | ||||||||||||||||
Vested | (94 | ) | 19.31 | |||||||||||||||
Forfeited | (24 | ) | 31.97 | |||||||||||||||
Non-vested balance as of December 31, 2013 | 172 | $ | 33.69 | |||||||||||||||
Shares (000s) | Weighted Average Grant Date Fair | |||||||||||||||||
Value | ||||||||||||||||||
Non-vested balance as of December 31, 2011 | 354 | $ | 18.77 | |||||||||||||||
Granted | 91 | 32.72 | ||||||||||||||||
Vested | (187 | ) | 14.38 | |||||||||||||||
Forfeited | - | - | ||||||||||||||||
Non-vested balance as of December 31, 2012 | 258 | $ | 26.88 |
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
INVENTORIES [Abstract] | |||||||||
Inventories | Inventories at December 31, 2014 and 2013 consisted of the following: | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 19,822 | $ | 8,454 | |||||
Work in progress | 1,989 | 1,330 | |||||||
Finished goods | 27,812 | 15,040 | |||||||
Total inventories | $ | 49,623 | $ | 24,824 |
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
PROPERTY, PLANT AND EQUIPMENT [Abstract] | |||||||||
Property, plant and equipment | Property, plant and equipment at December 31, 2014 and 2013 are summarized as follows: | ||||||||
2014 | 2013 | ||||||||
Land | $ | 3,130 | $ | 2,054 | |||||
Building | 31,030 | 19,732 | |||||||
Equipment | 150,170 | 86,147 | |||||||
Construction in progress | 10,969 | 1,754 | |||||||
195,299 | 109,687 | ||||||||
Less: Accumulated depreciation | 63,711 | 54,771 | |||||||
Property, plant and equipment, net | $ | 131,588 | $ | 54,916 |
INTANGIBLE_ASSETS_Tables
INTANGIBLE ASSETS (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
INTANGIBLE ASSETS [Abstract] | |||||||||||||||||||||
Schedule of intangible assets reconciliation of goodwill | Unamortized goodwill is allocated to the Company’s reportable segments as follows: | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Specialty Products | $ | 7,160 | $ | 7,160 | |||||||||||||||||
SensoryEffects | 363,524 | 8,393 | |||||||||||||||||||
Animal Nutrition and Health | 12,962 | 12,962 | |||||||||||||||||||
Total | $ | 383,646 | $ | 28,515 | |||||||||||||||||
Intangible assets with finite lives | As of December 31, 2014 and 2013, the Company had identifiable intangible assets as follows: | ||||||||||||||||||||
Amortization | 2014 | 2014 | 2013 | 2013 | |||||||||||||||||
Period | Gross | Accumulated Amortization | Gross | Accumulated Amortization | |||||||||||||||||
(In years) | Carrying | Carrying | |||||||||||||||||||
Amount | Amount | ||||||||||||||||||||
Customer relationships & lists | 10 | $ | 167,442 | $ | 41,238 | $ | 37,142 | $ | 24,552 | ||||||||||||
Trademarks & trade names | 17 | 32,014 | 2,540 | 910 | 461 | ||||||||||||||||
Developed technology | 5 | 3,200 | 420 | -0- | -0- | ||||||||||||||||
Regulatory registration costs | 10-May | 1,704 | 667 | 1,644 | 514 | ||||||||||||||||
Patents & trade secrets | 15-17 | 1,665 | 933 | 1,593 | 849 | ||||||||||||||||
Other | 10-May | 754 | 587 | 754 | 541 | ||||||||||||||||
$ | 206,779 | $ | 46,385 | $ | 42,043 | $ | 26,917 |
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
LONG TERM DEBT [Abstract] | |||||||||||||||||||||
Future minimum debt payments | The following table summarizes the future minimum debt payments: | ||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | |||||||||||||||||
Current portion of long-term debt | $ | 35,000 | - | - | - | - | |||||||||||||||
Long-term debt | - | $ | 35,000 | $ | 35,000 | $ | 35,000 | $ | 192,500 | ||||||||||||
Total | $ | 35,000 | $ | 35,000 | $ | 35,000 | $ | 35,000 | $ | 192,500 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
INCOME TAXES [Abstract] | |||||||||||||
Income tax expense | Income tax expense consists of the following: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | 25,937 | $ | 18,366 | $ | 17,748 | |||||||
Foreign | 2,141 | 1,418 | 1,080 | ||||||||||
State | 2,412 | 1,475 | 1,104 | ||||||||||
Deferred: | |||||||||||||
Federal | (5,772 | ) | (75 | ) | (332 | ) | |||||||
Foreign | 85 | 74 | 148 | ||||||||||
State | (577 | ) | (314 | ) | 91 | ||||||||
Total income tax provision | $ | 24,226 | $ | 20,944 | $ | 19,839 | |||||||
Income tax reconciliation | The provision for income taxes differs from the amount computed by applying the Federal statutory rate of 35% to earnings before income tax expense due to the following: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income tax at Federal statutory rate | $ | 26,968 | $ | 23,036 | $ | 20,945 | |||||||
State income taxes, net of Federal income taxes | 1,182 | 908 | 659 | ||||||||||
Domestic production activities deduction | (2,567 | ) | (1,804 | ) | (1,775 | ) | |||||||
Other | (1,357 | ) | (1,196 | ) | 10 | ||||||||
Total income tax provision | $ | 24,226 | $ | 20,944 | $ | 19,839 | |||||||
Deferred tax assets and liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2014 and 2013 were as follows: | ||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Inventories | $ | 1,774 | $ | 608 | |||||||||
Restricted stock and stock options | 4,716 | 4,590 | |||||||||||
Other | 4,019 | 758 | |||||||||||
Total deferred tax assets | 10,509 | 5,956 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Amortization | $ | 60,056 | $ | 3,031 | |||||||||
Depreciation | 17,969 | 6,978 | |||||||||||
Prepaid expense | 932 | 542 | |||||||||||
Other | 563 | 396 | |||||||||||
Total deferred tax liabilities | 79,520 | 10,947 | |||||||||||
Net deferred tax liability | $ | 69,011 | $ | 4,991 | |||||||||
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits, which is included in other long-term obligations on the Company’s consolidated balance sheets, is as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at beginning of period | $ | 3,076 | $ | 2,292 | $ | 2,021 | |||||||
Increases for tax positions of prior years | 1,922 | 445 | 116 | ||||||||||
Decreases for tax positions of prior years | (417 | ) | (166 | ) | (224 | ) | |||||||
Increases for tax positions related to current year | 624 | 505 | 379 | ||||||||||
Balance at end of period | $ | 5,205 | $ | 3,076 | $ | 2,292 |
NET_EARNINGS_PER_COMMON_SHARE_
NET EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
NET EARNINGS PER COMMON SHARE [Abstract] | |||||||||||||
Reconciliation of the net earnings and shares used in calculating basic and diluted net earnings per share | The following presents a reconciliation of the net earnings and shares used in calculating basic and diluted net earnings per common share: | ||||||||||||
2014 | Earnings | Number of Shares | Per Share Amount | ||||||||||
(Numerator) | (Denominator) | ||||||||||||
Basic EPS – Net earnings and weighted average common shares outstanding | $ | 52,826 | 30,381,310 | $ | 1.74 | ||||||||
Effect of dilutive securities – stock options and restricted stock | 790,412 | ||||||||||||
Diluted EPS – Net earnings and weighted average common shares outstanding and effect of stock options and restricted stock | $ | 52,826 | 31,171,722 | $ | 1.69 | ||||||||
Earnings | Number of Shares | Per Share Amount | |||||||||||
2013 | (Numerator) | (Denominator) | |||||||||||
Basic EPS – Net earnings and weighted average common shares outstanding | $ | 44,874 | 29,623,952 | $ | 1.51 | ||||||||
Effect of dilutive securities – stock options and restricted stock | 1,223,183 | ||||||||||||
Diluted EPS – Net earnings and weighted average common shares outstanding and effect of stock options and restricted stock | $ | 44,874 | 30,847,135 | $ | 1.45 | ||||||||
Earnings | Number of Shares | Per Share Amount | |||||||||||
2012 | (Numerator) | (Denominator) | |||||||||||
Basic EPS – Net earnings and weighted average common shares outstanding | $ | 40,005 | 28,994,212 | $ | 1.38 | ||||||||
Effect of dilutive securities – stock options and restricted stock | 1,358,364 | ||||||||||||
Diluted EPS – Net earnings and weighted average common shares outstanding and effect of stock options and restricted stock | $ | 40,005 | 30,352,576 | $ | 1.32 |
EMPLOYEE_BENEFIT_PLANS_Tables
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS [Abstract] | ||||||||||||||||||||||||
Change in benefit obligation | Change in benefit obligation: | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 1,152 | $ | 1,301 | ||||||||||||||||||||
Service cost with interest to end of year | 57 | 67 | ||||||||||||||||||||||
Interest cost | 48 | 42 | ||||||||||||||||||||||
Participant contributions | 3 | 1 | ||||||||||||||||||||||
Benefits paid* | 42 | (97 | ) | |||||||||||||||||||||
Actuarial gain | (191 | ) | (162 | ) | ||||||||||||||||||||
Benefit obligation at end of year | $ | 1,111 | $ | 1,152 | ||||||||||||||||||||
Change in plan assets | Change in plan assets: | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | - | $ | - | ||||||||||||||||||||
Employer (reimbursement)/contributions* | (45 | ) | 96 | |||||||||||||||||||||
Participant contributions | 3 | 1 | ||||||||||||||||||||||
Benefits paid* | 42 | (97 | ) | |||||||||||||||||||||
Fair value of plan assets at end of year | $ | - | $ | - | ||||||||||||||||||||
*Stop loss reimbursement credit received in 2014. | ||||||||||||||||||||||||
Amounts recognized in consolidated balance sheet | Amounts recognized in consolidated balance sheet: | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Accumulated postretirement benefit obligation | $ | (1,111 | ) | $ | (1,152 | ) | ||||||||||||||||||
Fair value of plan assets | - | - | ||||||||||||||||||||||
Funded status | (1,111 | ) | (1,152 | ) | ||||||||||||||||||||
Unrecognized prior service cost | N/ | A | N/ | A | ||||||||||||||||||||
Unrecognized net (gain)/loss | N/ | A | N/ | A | ||||||||||||||||||||
Net amount recognized in consolidated balance sheet (after ASC 715) (included in other long-term obligations) | $ | 1,111 | $ | 1,152 | ||||||||||||||||||||
Accrued postretirement benefit cost (included in other long-term obligations) | $ | N/ | A | $ | N/ | A | ||||||||||||||||||
Components of net periodic benefit cost | Components of net periodic benefit cost: | |||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Service cost with interest to end of year | $ | 57 | $ | 67 | $ | 53 | ||||||||||||||||||
Interest cost | 48 | 42 | 41 | |||||||||||||||||||||
Amortization of prior service credit | (18 | ) | (18 | ) | (18 | ) | ||||||||||||||||||
Amortization of gain | 6 | 17 | 4 | |||||||||||||||||||||
Total net periodic benefit cost | $ | 93 | $ | 108 | $ | 80 | ||||||||||||||||||
Estimated future employer contributions and benefit payments | Estimated future employer contributions and benefit payments are as follows: | |||||||||||||||||||||||
Year | ||||||||||||||||||||||||
2015 | $ | 21 | ||||||||||||||||||||||
2016 | 34 | |||||||||||||||||||||||
2017 | 45 | |||||||||||||||||||||||
2018 | 75 | |||||||||||||||||||||||
2019 | 101 | |||||||||||||||||||||||
Years 2020-2024 | 407 | |||||||||||||||||||||||
Pension fund disclosure | EIN/Pension Plan | Pension Plan Protection Act Zone Status | Contributions of Balchem Corporation | Surcharge Imposed | Expiration Date of Collective-Bargaining Agreement | |||||||||||||||||||
Pension Fund | Number | FIP/RP Status Pending/ | ||||||||||||||||||||||
2014 | 2013 | Implemented | 2014 | 2013 | 2012 | |||||||||||||||||||
Central States, Southeast and Southwest Areas | 36-6044243 | Red as of 1/1/2014 | Red as of 1/1/2013 | Implemented | $ | 498 | $ | 451 | $ | 415 | - | 5/31/17 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
COMMITMENTS AND CONTINGENCIES [Abstract] | |||||
Aggregate future minimum rental payments required under non-cancelable operating leases | Aggregate future minimum rental payments required under non-cancelable operating leases at December 31, 2014 are as follows: | ||||
Year | |||||
2015 | $ | 1,811 | |||
2016 | 1,430 | ||||
2017 | 1,170 | ||||
2018 | 923 | ||||
2019 | 448 | ||||
Thereafter | 2,103 | ||||
Total minimum lease payments | $ | 7,885 |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME [Abstract] | |||||||||||||
Changes in accumulated other comprehensive income (loss) | The changes in accumulated other comprehensive income (loss) were as follows: | ||||||||||||
Years Ended | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net foreign currency translation adjustment | $ | (2,972 | ) | $ | 856 | $ | 342 | ||||||
Net change in postretirement benefit plan (see Note 10 for further information) | |||||||||||||
Net (loss)/gain arising during the period | 191 | 162 | (235 | ) | |||||||||
Amortization of prior service credit | (18 | ) | (18 | ) | (18 | ) | |||||||
Amortization of (loss)/gain | 6 | 17 | 4 | ||||||||||
Total before tax | 179 | 161 | (249 | ) | |||||||||
Tax | (56 | ) | (60 | ) | 86 | ||||||||
Net of tax | 123 | 101 | (163 | ) | |||||||||
Total other comprehensive income (loss) | $ | (2,849 | ) | $ | 957 | $ | 179 |
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
SEGMENT INFORMATION [Abstract] | |||||||||||||
Segment Reporting Information, by Segment | The Company’s reportable segments are strategic businesses that offer products and services to different markets. The Company presently has three segments: SensoryEffects; Animal Nutrition & Health; and Specialty Products. Our SensoryEffects segment supplies ingredients in the food and beverage industry; providing customized solutions in powder and liquid flavor delivery systems, spray dried emulsified powder systems, and cereal systems. This segment provides microencapsulation solutions to a variety of applications in food, pharmaceutical and nutritional ingredients to enhance performance of nutritional fortification, processing and packaging applications and shelf-life. Human grade choline, pharmaceutical products and encapsulated products are also reported in the SensoryEffects segment. The Animal Nutrition & Health segment manufactures and supplies choline chloride, an essential nutrient for animal health, to the poultry, pet and swine industries. In addition, certain derivatives of choline chloride are manufactured and sold into industrial applications and are included in this segment. Chelated minerals and specialty nutritional products for the animal health industry are also reported in this segment. The Specialty Products segment provides specialty-packaged chemicals for use in healthcare and other industries. The Company sells products for all segments through its own sales force, independent distributors, and sales agents. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. | ||||||||||||
Business Segment Net Sales: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Specialty Products | 54,053 | $ | 51,086 | $ | 49,990 | ||||||||
SensoryEffects | 206,101 | 47,569 | 44,070 | ||||||||||
Animal Nutrition & Health | 281,229 | 238,518 | 216,333 | ||||||||||
Total | 541,383 | $ | 337,173 | $ | 310,393 | ||||||||
Business Segment Earnings Before Income Taxes: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Specialty Products | $ | 21,316 | $ | 20,224 | $ | 20,332 | |||||||
SensoryEffects | 21,260 | 11,233 | 11,335 | ||||||||||
Animal Nutrition & Health | 40,219 | 34,145 | 28,110 | ||||||||||
Transaction costs, integration costs and legal settlement | (652 | ) | - | - | |||||||||
Interest and other income, net | (5,091 | ) | 216 | 67 | |||||||||
Total | $ | 77,052 | $ | 65,818 | $ | 59,844 | |||||||
Depreciation/Amortization: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Specialty Products | $ | 1,330 | $ | 1,386 | $ | 1,369 | |||||||
SensoryEffects | 21,031 | 1,356 | 1,444 | ||||||||||
Animal Nutrition & Health | 7,706 | 7,732 | 6,828 | ||||||||||
Total | $ | 30,067 | $ | 10,474 | $ | 9,641 | |||||||
Business Segment Assets: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Specialty Products | $ | 24,913 | $ | 24,850 | $ | 26,964 | |||||||
SensoryEffects | 655,870 | 22,343 | 21,393 | ||||||||||
Animal Nutrition & Health | 122,980 | 116,710 | 116,035 | ||||||||||
Other Unallocated | 57,508 | 212,969 | 148,153 | ||||||||||
Total | $ | 861,271 | $ | 376,872 | $ | 312,545 | |||||||
Other unallocated assets consist of certain cash, receivables, prepaid expenses, equipment and leasehold improvements, net of accumulated depreciation, and deferred income taxes, which the Company does not allocate to its individual business segments. | |||||||||||||
Capital Expenditures: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Specialty Products | $ | 896 | $ | 725 | $ | 836 | |||||||
SensoryEffects | 3,342 | 1,318 | 924 | ||||||||||
Animal Nutrition & Health | 8,961 | 6,144 | 12,123 | ||||||||||
Total | $ | 13,199 | $ | 8,187 | $ | 13,883 | |||||||
Geographic Revenue Information | Geographic Revenue Information: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | 420,324 | $ | 227,651 | $ | 207,490 | |||||||
Foreign Countries | 121,059 | 109,522 | 102,903 | ||||||||||
Total | $ | 541,383 | $ | 337,173 | $ | 310,393 | |||||||
Geographic area data - long-lived assets (excluding intangible assets) | Geographic Area Data – Long-Lived Assets (excluding intangible assets): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | 121,090 | $ | 43,078 | $ | 41,183 | |||||||
Italy | 10,498 | 11,838 | 11,542 | ||||||||||
Total | $ | 131,588 | $ | 54,916 | $ | 52,725 |
SUPPLEMENTAL_CASH_FLOW_INFORMA1
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION [Abstract] | |||||||||||||
Supplemental Cash Flow Information | Cash paid during the year for: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income taxes | $ | 25,304 | $ | 12,096 | $ | 14,836 | |||||||
Interest | $ | 4,685 | $ | 40 | $ | 6 | |||||||
Non-cash financing activities: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Dividends payable | $ | 9,251 | $ | 7,856 | $ | - |
QUARTERLY_FINANCIAL_INFORMATIO1
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) [Abstract] | |||||||||||||||||||||||||||||||||
Quarterly Financial Information | (In thousands, except per share data) | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||||||||||||||
Net sales | $ | 85,995 | $ | 132,230 | $ | 160,490 | $ | 162,668 | $ | 84,651 | $ | 83,296 | $ | 87,593 | $ | 81,633 | |||||||||||||||||
Gross profit | 23,215 | 32,335 | 44,487 | 44,135 | 24,232 | 24,885 | 24,522 | 23,782 | |||||||||||||||||||||||||
Earnings before income taxes | 13,372 | 15,291 | 23,209 | 25,180 | 15,863 | 16,682 | 17,060 | 16,213 | |||||||||||||||||||||||||
Net earnings | 8,894 | 9,732 | 15,178 | 19,022 | 10,888 | 11,582 | 11,657 | 10,747 | |||||||||||||||||||||||||
Basic net earnings per common share | $ | 0.3 | $ | 0.32 | $ | 0.5 | $ | 0.62 | $ | 0.37 | $ | 0.39 | $ | 0.39 | $ | 0.36 | |||||||||||||||||
Diluted net earnings per common share | $ | 0.29 | $ | 0.31 | $ | 0.49 | $ | 0.61 | $ | 0.36 | $ | 0.38 | $ | 0.38 | $ | 0.35 |
BUSINESS_DESCRIPTION_AND_SUMMA3
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Segment | ||
Reporting Units [Abstract] | ||
Number of reporting units | 3 | |
Selling, General and Administrative Expense [Abstract] | ||
General and adminstrattive, net of legal settlement | $2,900,000 | |
Goodwill [Line Items] | ||
Goodwill | 383,646,000 | 28,515,000 |
Customer Relationships and Lists [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 10 years | |
Developed Technology [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 5 years | |
Trademarks & Trade Names [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 17 years | |
Specialty Products [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 7,160,000 | 7,160,000 |
SensoryEffects [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 363,524,000 | 8,393,000 |
Animal Nutrition and Health [Member] | ||
Goodwill [Line Items] | ||
Goodwill | $12,962,000 | $12,962,000 |
Minimum [Member] | Regulatory Registration Costs [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 5 years | |
Minimum [Member] | Patents & Trade Secrets [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 15 years | |
Minimum [Member] | Other [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 5 years | |
Maximum [Member] | Regulatory Registration Costs [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 10 years | |
Maximum [Member] | Patents & Trade Secrets [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 17 years | |
Maximum [Member] | Other [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 10 years | |
Buildings [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 15 years | |
Buildings [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 25 years | |
Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 2 years | |
Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 28 years |
ACQUISITION_Details
ACQUISITION (Details) (USD $) | 12 Months Ended | 0 Months Ended | 8 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | 7-May-14 | Dec. 31, 2014 | |
Estimated fair values of the assets acquired and liabilities assumed [Abstract] | ||||
Goodwill | $383,646,000 | $28,515,000 | $383,646,000 | |
Unaudited pro forma information [Abstract] | ||||
SensoryEffects actual results included in the Company's consolidated income statement from May 7, 2014 through December 31, 2014, Net Sales | 156,192,000 | 0 | ||
SensoryEffects actual results included in the Company's consolidated income statement from May 7, 2014 through December 31, 2014, Net earnings | 6,632,000 | 0 | ||
Supplemental pro forma combined financial information, Net Sales | 625,400,000 | 545,592,000 | ||
Supplemental pro forma combined financial information, Net Earnings | 61,730,000 | 41,603,000 | ||
Basic earnings per share (in dollars per share) | $2.03 | $1.40 | ||
Diluted earnings per share (in dollars per share) | $1.98 | $1.35 | ||
Performance Chemicals and Ingredients Company [Member] | ||||
Business Acquisition [Line Items] | ||||
Percentage owned of the "Acquisition" (in hundredth) | 100.00% | |||
Purchase price | 569,000,000 | |||
Tax deductible for income tax purposes | 20,466,000 | |||
Estimated fair values of the assets acquired and liabilities assumed [Abstract] | ||||
Cash and cash equivalents | 2,635,000 | |||
Accounts receivable | 25,674,000 | |||
Inventories | 32,000,000 | |||
Property, plant and equipment | 75,850,000 | |||
Customer relationships | 130,300,000 | |||
Trade names | 31,100,000 | |||
Developed technology | 3,200,000 | |||
Other assets | 3,955,000 | |||
Indemnification asset | 1,650,000 | |||
Trade accounts payable | -10,427,000 | |||
Accrued expenses | -6,326,000 | |||
Bank debt | -75,550,000 | |||
Deferred income taxes | -75,500,000 | |||
Goodwill | 355,131,000 | |||
Amount paid to shareholders | 493,692,000 | |||
SensoryEffects bank debt paid on purchase date | 75,550,000 | |||
Total amount paid on acquisition date | 569,242,000 | |||
Deferred income taxes and goodwill | 2,000,000 | |||
Transaction and integration related costs | 3,652,000 | |||
Unaudited pro forma information [Abstract] | ||||
Acquisition-related costs | 17,248,000 | |||
Non-recurring expenses related to the fair value adjustments to acquisition-date inventory | 4,735,000 | |||
Performance Chemicals and Ingredients Company [Member] | Minimum [Member] | ||||
Estimated fair values of the assets acquired and liabilities assumed [Abstract] | ||||
Increase in indemnification asset balance | 272,000 | |||
Performance Chemicals and Ingredients Company [Member] | Maximum [Member] | ||||
Estimated fair values of the assets acquired and liabilities assumed [Abstract] | ||||
Increase in indemnification asset balance | $1,922,000 | |||
Performance Chemicals and Ingredients Company [Member] | Customer Relationships [Member] | ||||
Estimated fair values of the assets acquired and liabilities assumed [Abstract] | ||||
Useful life of intangible assets acquired | 10 years | |||
Performance Chemicals and Ingredients Company [Member] | Trade Names [Member] | ||||
Estimated fair values of the assets acquired and liabilities assumed [Abstract] | ||||
Useful life of intangible assets acquired | 10 years | |||
Performance Chemicals and Ingredients Company [Member] | Developed Technology [Member] | ||||
Estimated fair values of the assets acquired and liabilities assumed [Abstract] | ||||
Useful life of intangible assets acquired | 5 years |
STOCKHOLDERS_EQUITY_Details
STOCKHOLDERS' EQUITY (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Increase in cash flows from financing activities , excess tax benefits related to stock compensation | $7,220 | $9,397 | $2,862 |
Number of share-based compensation plans | 1 | ||
Non-vested Restricted Stock, Weighted Average Grant Date Fair Value [Abstract] | |||
Share-based compensation expense expected to be recognized over the next fiscal year | 4,900 | ||
Repurchase of common stock [Abstract] | |||
Number of shares authorized to be repurchased (in shares) | 3,763,038 | ||
Number of shares acquired under stock repurchase plan (in shares) | 2,105,231 | ||
Number of shares acquired under the stock repurchase plan and subsequently reissued (in shares) | 17,497 | ||
Treasury stock acquired, average cost (in dollars per share) | $61.06 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Impact of compensation cost on net earnings | -2,926 | -2,370 | -2,469 |
Stock options outstanding by price range [Abstract] | |||
Shares Outstanding (in shares) | 1,470,000 | ||
Weighted Average Remaining Contractual Term of Options Outstanding | 5 years 7 months 6 days | ||
Weighted Average Exercise Price of Options Outstanding (in dollars per share) | $27.35 | ||
Number of Options Exercisable (in shares) | 1,066,000 | ||
Weighted Average Exercise Price of Options Exercisable (in dollars per share) | $21.52 | ||
$9.21 - $22.34 [Member] | |||
Stock options outstanding by price range [Abstract] | |||
Range of Exercise Prices, Minimum (in dollars per share) | $9.21 | ||
Range of Exercise Prices, Maximum (in dollars per share) | $22.34 | ||
Shares Outstanding (in shares) | 702,000 | ||
Weighted Average Remaining Contractual Term of Options Outstanding | 3 years 4 months 24 days | ||
Weighted Average Exercise Price of Options Outstanding (in dollars per share) | $16.09 | ||
Number of Options Exercisable (in shares) | 702,000 | ||
Weighted Average Exercise Price of Options Exercisable (in dollars per share) | $16.09 | ||
$24.95 - $32.21 [Member] | |||
Stock options outstanding by price range [Abstract] | |||
Range of Exercise Prices, Minimum (in dollars per share) | $24.95 | ||
Range of Exercise Prices, Maximum (in dollars per share) | $32.21 | ||
Shares Outstanding (in shares) | 401,000 | ||
Weighted Average Remaining Contractual Term of Options Outstanding | 6 years 6 months | ||
Weighted Average Exercise Price of Options Outstanding (in dollars per share) | $30.68 | ||
Number of Options Exercisable (in shares) | 322,000 | ||
Weighted Average Exercise Price of Options Exercisable (in dollars per share) | $31.08 | ||
$33.81 - $58.42 [Member] | |||
Stock options outstanding by price range [Abstract] | |||
Range of Exercise Prices, Minimum (in dollars per share) | $33.81 | ||
Range of Exercise Prices, Maximum (in dollars per share) | $58.42 | ||
Shares Outstanding (in shares) | 367,000 | ||
Weighted Average Remaining Contractual Term of Options Outstanding | 8 years 8 months 12 days | ||
Weighted Average Exercise Price of Options Outstanding (in dollars per share) | $45.28 | ||
Number of Options Exercisable (in shares) | 42,000 | ||
Weighted Average Exercise Price of Options Exercisable (in dollars per share) | $39.19 | ||
Cost of Sales [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Impact of compensation cost on earnings component | 593 | 607 | 523 |
Operating Expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Impact of compensation cost on earnings component | 3,963 | 3,210 | 3,383 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future awards (in shares) | 4,064,576 | ||
Weighted Average Assumptions [Abstract] | |||
Expected Volatility (in hundredths) | 33.70% | 39.20% | 40.60% |
Expected Term (in years) | 5 years 7 months 6 days | 5 years | 4 years 7 months 6 days |
Risk-Free Interest Rate (in hundredths) | 1.80% | 1.00% | 0.70% |
Dividend Yield (in hundredths) | 0.50% | 0.50% | 0.50% |
Vesting period | 3 years | ||
Stock Option Activity, Shares [Abstract] | |||
Outstanding at beginning of year (in shares) | 1,893,000 | 2,543,000 | 2,514,000 |
Granted (in shares) | 313,000 | 177,000 | 276,000 |
Exercised (in shares) | -610,000 | -796,000 | -231,000 |
Forfeited (in shares) | -126,000 | -31,000 | -16,000 |
Outstanding at end of year (in shares) | 1,470,000 | 1,893,000 | 2,543,000 |
Exercisable at end of year (in shares) | 1,066,000 | 1,516,000 | 2,155,000 |
Stock Option Activity, Weighted Average Exercise Price [Abstract] | |||
Outstanding at beginning of year (in dollars per share) | $20.94 | $16.87 | $14.68 |
Granted (in dollars per share) | $53.38 | $38.73 | $30.35 |
Exercised (in dollars per share) | $14.92 | $11.40 | $8.24 |
Forfeited (in dollars per share) | $56.03 | $33.90 | $28.53 |
Outstanding at end of year (in dollars per share) | $27.35 | $20.94 | $16.87 |
Exercisable at end of period (in dollars per share) | $21.52 | $17.64 | $14.30 |
Aggregate intrinsic value for outstanding stock options | 57,742 | 71,465 | 49,845 |
Weighted average remaining contractual term for outstanding stock options | 5 years 7 months 6 days | ||
Aggregate intrinsic value for exercisable stock options outstanding | 48,085 | ||
Weighted average remaining contractual term for exercisable stock options outstanding | 4 years 4 months 24 days | ||
Weighted-average fair value of options granted (in dollars per share) | $17.36 | $13.07 | $10.09 |
Total intrinsic value of stock options exercised | 25,224 | 28,776 | 6,524 |
Restricted Stock [Member] | |||
Non-vested Restricted Stock, Shares [Roll Forward] | |||
Non-vested balance as of beginning of year (in shares) | 172,000 | 258,000 | 354,000 |
Granted (in shares) | 33,000 | 32,000 | 91,000 |
Vested (in shares) | -65,000 | -94,000 | -187,000 |
Forfeited (in shares) | -6,000 | -24,000 | 0 |
Non-vested balance as of end of year (in shares) | 134,000 | 172,000 | 258,000 |
Non-vested Restricted Stock, Weighted Average Grant Date Fair Value [Abstract] | |||
Non-vested balance as of beginning of year (in dollars per share) | $33.69 | $26.88 | $18.77 |
Granted (in dollars per share) | $54.86 | $44.69 | $32.72 |
Vested (in dollars per share) | $34.19 | $19.31 | $14.38 |
Forfeited (in dollars per share) | $45.32 | $31.97 | $0 |
Non-vested balance as of end of year (in dollars per share) | $38.13 | $33.69 | $26.88 |
Unrecognized compensation cost related to non-vested shares | $5,981 | $5,947 | $7,012 |
Weighted-average period of recognition for unrecognized compensation cost | 2 years | ||
Minimum [Member] | Restricted Stock [Member] | Employee [Member] | |||
Weighted Average Assumptions [Abstract] | |||
Vesting period | 90 days | ||
Minimum [Member] | Restricted Stock [Member] | Non-employee Director [Member] | |||
Weighted Average Assumptions [Abstract] | |||
Vesting period | 4 years | ||
Maximum [Member] | Restricted Stock [Member] | Employee [Member] | |||
Weighted Average Assumptions [Abstract] | |||
Vesting period | 4 years | ||
Maximum [Member] | Restricted Stock [Member] | Non-employee Director [Member] | |||
Weighted Average Assumptions [Abstract] | |||
Vesting period | 7 years | ||
1999 Stock Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Initial number of common stock shares reserved for issuance (in shares) | 600,000 | ||
Increase in the number of shares of common stock reserved for issuance (in shares) | 600,000 | ||
1999 Stock Plan [Member] | Non-employee Director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares purchased under restricted stock purchase agreements, minimum (in shares) | 500 | ||
Shares purchased under restricted stock purchase agreements, maximum (in shares) | 20,000 | ||
1999 Stock Plan [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of option grants exercisable after one year (in hundredths) | 20.00% | ||
Percentage of option grants exercisable after two years (in hundredths) | 60.00% | ||
Percentage of option grants exercisable after three years (in hundredths) | 100.00% | ||
Expiration period of options granted | 10 years | ||
1999 Stock Plan [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares purchased under restricted stock purchase agreements, minimum (in shares) | 1,000 | ||
Shares purchased under restricted stock purchase agreements, maximum (in shares) | 20,250 | ||
Shares purchased under restricted stock purchase agreements, purchase price, minimum (in dollars per share) | $0.02 | ||
Shares purchased under restricted stock purchase agreements, purchase price, maximum (in dollars per share) | $0.07 | ||
Amended 1999 Stock Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Initial number of common stock shares reserved for issuance (in shares) | 1,200,000 | ||
Second Amended 1999 Stock Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Initial number of common stock shares reserved for issuance (in shares) | 6,000,000 | ||
ISO Plan [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period of options granted | 10 years | ||
Non-Qualified Plan [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period of options granted | 10 years |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
INVENTORIES [Abstract] | ||
Raw materials | $19,822 | $8,454 |
Work in progress | 1,989 | 1,330 |
Finished goods | 27,812 | 15,040 |
Total inventories | 49,623 | 24,824 |
Reserve for inventory | $1,682 | $181 |
PROPERTY_PLANT_AND_EQUIPMENT_D
PROPERTY, PLANT AND EQUIPMENT (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $195,299 | $109,687 | |
Less: Accumulated depreciation | 63,711 | 54,771 | |
Property, plant and equipment, net | 131,588 | 54,916 | |
Depreciation expense | 10,599 | 6,498 | 5,672 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 3,130 | 2,054 | |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 31,030 | 19,732 | |
Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 150,170 | 86,147 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $10,969 | $1,754 |
INTANGIBLE_ASSETS_Details
INTANGIBLE ASSETS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
INTANGIBLE ASSETS [Abstract] | |||
Goodwill | $383,646 | $28,515 | |
Goodwill [Roll Forward] | |||
Goodwill, Beginning Balance | 28,515 | ||
Goodwill as a result of the Acquisition of Performance Chemicals & Ingredients Company | 355,131 | ||
Goodwill, Ending Balance | 383,646 | 28,515 | |
Identifiable intangible assets [Abstract] | |||
Gross Carrying Amount | 206,779 | 42,043 | |
Accumulated Amortization | 46,385 | 26,917 | |
Amortization of identifiable finite-lived intangible assets [Abstract] | |||
Amortization of identifiable intangible assets | 19,468 | 3,976 | 3,969 |
Finite-lived intangible assets, future amortization expense [Abstract] | |||
2015 | 26,490 | ||
2016 | 24,300 | ||
2017 | 20,345 | ||
2018 | 18,085 | ||
2019 | 16,285 | ||
Indefinite-lived intangible assets | 0 | 0 | |
Customer Relationships and Lists [Member] | |||
Identifiable intangible assets [Abstract] | |||
Amortization Period | 10 years | 10 years | |
Gross Carrying Amount | 167,442 | 37,142 | |
Accumulated Amortization | 41,238 | 24,552 | |
Trademarks & Trade Names [Member] | |||
Identifiable intangible assets [Abstract] | |||
Amortization Period | 17 years | 17 years | |
Gross Carrying Amount | 32,014 | 910 | |
Accumulated Amortization | 2,540 | 461 | |
Developed Technology [Member] | |||
Identifiable intangible assets [Abstract] | |||
Amortization Period | 5 years | 5 years | |
Gross Carrying Amount | 3,200 | 0 | |
Accumulated Amortization | 420 | 0 | |
Regulatory Registration Costs [Member] | |||
Identifiable intangible assets [Abstract] | |||
Gross Carrying Amount | 1,704 | 1,644 | |
Accumulated Amortization | 667 | 514 | |
Regulatory Registration Costs [Member] | Minimum [Member] | |||
Identifiable intangible assets [Abstract] | |||
Amortization Period | 5 years | 5 years | |
Regulatory Registration Costs [Member] | Maximum [Member] | |||
Identifiable intangible assets [Abstract] | |||
Amortization Period | 10 years | 10 years | |
Patents & Trade Secrets [Member] | |||
Identifiable intangible assets [Abstract] | |||
Gross Carrying Amount | 1,665 | 1,593 | |
Accumulated Amortization | 933 | 849 | |
Patents & Trade Secrets [Member] | Minimum [Member] | |||
Identifiable intangible assets [Abstract] | |||
Amortization Period | 15 years | 15 years | |
Patents & Trade Secrets [Member] | Maximum [Member] | |||
Identifiable intangible assets [Abstract] | |||
Amortization Period | 17 years | 17 years | |
Other [Member] | |||
Identifiable intangible assets [Abstract] | |||
Gross Carrying Amount | 754 | 754 | |
Accumulated Amortization | $587 | $541 | |
Other [Member] | Minimum [Member] | |||
Identifiable intangible assets [Abstract] | |||
Amortization Period | 5 years | 5 years | |
Other [Member] | Maximum [Member] | |||
Identifiable intangible assets [Abstract] | |||
Amortization Period | 10 years | 10 years |
LONGTERM_DEBT_Details
LONG-TERM DEBT (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Debt outstanding | $332,500 | |
Term loan quarterly payment | 8,750 | |
Maturity date | 7-May-19 | |
Term loan interest rate (in hundredth) | 1.92% | |
Undrawn revolving loan | 100,000 | |
Maturities of Long-term Debt [Abstract] | ||
2015 | 35,000 | 35,000 |
2016 | 35,000 | 35,000 |
2017 | 35,000 | 35,000 |
2018 | 35,000 | 35,000 |
2019 | 192,500 | 192,500 |
Capitalized costs net of accumulated amortization | 2,139 | 2,139 |
Capitalized costs, other current assets | 603 | 603 |
Capitalized costs, other assets | 1,536 | 1,536 |
Amortization expense pertaining to Capitalized costs | 457 | |
Senior Secured Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Amount of loan | 350,000 | 350,000 |
Revolving Loan [Member] | ||
Debt Instrument [Line Items] | ||
Amount of loan | 100,000 | 100,000 |
Revolving loan used for funding of acquisition and general corporate purposes | 50,000 | |
Current Portion of Long-term Debt [Member] | ||
Maturities of Long-term Debt [Abstract] | ||
2015 | 35,000 | 35,000 |
Long-term Debt [Member] | ||
Maturities of Long-term Debt [Abstract] | ||
2016 | 35,000 | 35,000 |
2017 | 35,000 | 35,000 |
2018 | 35,000 | 35,000 |
2019 | $192,500 | $192,500 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current [Abstract] | |||
Federal | $25,937 | $18,366 | $17,748 |
Foreign | 2,141 | 1,418 | 1,080 |
State | 2,412 | 1,475 | 1,104 |
Deferred [Abstract] | |||
Federal | -5,772 | -75 | -332 |
Foreign | 85 | 74 | 148 |
State | -577 | -314 | 91 |
Total income tax provision | 24,226 | 20,944 | 19,839 |
Federal statutory rate (in hundredths) | 35.00% | ||
Income tax reconciliation [Abstract] | |||
Income tax at Federal statutory rate | 26,968 | 23,036 | 20,945 |
State income taxes, net of Federal income taxes | 1,182 | 908 | 659 |
Domestic production activities deduction | -2,567 | -1,804 | -1,775 |
Other | -1,357 | -1,196 | 10 |
Total income tax provision | 24,226 | 20,944 | 19,839 |
Deferred tax assets [Abstract] | |||
Inventories | 1,774 | 608 | |
Restricted stock and stock options | 4,716 | 4,590 | |
Other | 4,019 | 758 | |
Total deferred tax assets | 10,509 | 5,956 | |
Deferred tax liabilities [Abstract] | |||
Amortization | 60,056 | 3,031 | |
Depreciation | 17,969 | 6,978 | |
Prepaid expense | 932 | 542 | |
Other | 563 | 396 | |
Total deferred tax liabilities | 79,520 | 10,947 | |
Net deferred tax liability | 69,011 | 4,991 | |
Valuation allowance for deferred tax assets | 0 | 0 | |
Reconciliation of unrecognized tax benefits [Roll Forward] | |||
Balance, beginning of period | 3,076 | 2,292 | 2,021 |
Increases for tax positions of prior years | 1,922 | 445 | 116 |
Decreases for tax positions of prior years | -417 | -166 | -224 |
Increases for tax positions related to current year | 624 | 505 | 379 |
Balance, end of period | 5,205 | 3,076 | 2,292 |
Interest and penalties | 37 | 130 | 40 |
Accrued interest and penalties | $1,643 | $1,052 |
NET_EARNINGS_PER_COMMON_SHARE_1
NET EARNINGS PER COMMON SHARE (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings (Numerator) [Abstract] | |||||||||||
Basic EPS - Net earnings | $52,826 | $44,874 | $40,005 | ||||||||
Diluted EPS - Net earnings | $52,826 | $44,874 | $40,005 | ||||||||
Number of Shares (Denominator) [Abstract] | |||||||||||
Basic EPS - Weighted average common shares outstanding (in shares) | 30,381,310 | 29,623,952 | 28,994,212 | ||||||||
Effect of dilutive securities - stock options and restricted stock (in shares) | 790,412 | 1,223,183 | 1,358,364 | ||||||||
Diluted EPS - Weighted average common shares outstanding (in shares) | 31,171,722 | 30,847,135 | 30,352,576 | ||||||||
Per Share Amount [Abstract] | |||||||||||
Basic EPS - Net earnings (in dollars per share) | $0.62 | $0.50 | $0.32 | $0.30 | $0.36 | $0.39 | $0.39 | $0.37 | $1.74 | $1.51 | $1.38 |
Diluted EPS - Net earnings (in dollars per share) | $0.61 | $0.49 | $0.31 | $0.29 | $0.35 | $0.38 | $0.38 | $0.36 | $1.69 | $1.45 | $1.32 |
Stock Options [Member] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Anti-dilutive stock options outstanding, excluded from diluted earnings per share calculation (in shares) | 56,500 | 10,000 | 282,027 |
EMPLOYEE_BENEFIT_PLANS_Details
EMPLOYEE BENEFIT PLANS (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Plan | |||||
EMPLOYEE BENEFIT PLANS [Abstract] | |||||
Number of savings plan | 2 | ||||
Provision for profit sharing contributions | $938 | $918 | $837 | ||
Provision for matching 401(k) savings plan contributions | 804 | 525 | 508 | ||
Change in benefit obligation [Roll Forward] | |||||
Benefit obligation at beginning of year | 1,152 | 1,301 | |||
Service cost with interest to end of year | 57 | 67 | 53 | ||
Interest cost | 48 | 42 | 41 | ||
Participant contributions | 3 | 1 | |||
Benefits paid | 42 | [1] | -97 | [1] | |
Actuarial gain | -191 | -162 | |||
Benefit obligation at end of year | 1,111 | 1,152 | 1,301 | ||
Change in plan assets [Roll Forward] | |||||
Fair value of plan assets at beginning of year | 0 | 0 | |||
Employer (reimbursement)/contributions | -45 | [1] | 96 | [1] | |
Participant contributions | 3 | 1 | |||
Benefits paid | 42 | [1] | -97 | [1] | |
Fair value of plan assets at end of year | 0 | 0 | 0 | ||
Amounts recognized in consolidated balance sheet [Abstract] | |||||
Accumulated postretirement benefit obligation | -1,111 | -1,152 | |||
Fair value of plan assets | 0 | 0 | 0 | ||
Funded status | -1,111 | -1,152 | |||
Unrecognized prior service cost | |||||
Unrecognized net (gain)/loss | |||||
Net amount recognized in consolidated balance sheet (after ASC 715) (included in other long-term obligations) | 1,111 | 1,152 | |||
Accrued postretirement benefit cost (included in other long-term obligations) | |||||
Components of net periodic benefit cost [Abstract] | |||||
Service cost with interest to end of year | 57 | 67 | 53 | ||
Interest cost | 48 | 42 | 41 | ||
Amortization of prior service credit | -18 | -18 | -18 | ||
Amortization of gain | 6 | 17 | 4 | ||
Total net periodic benefit cost | 93 | 108 | 80 | ||
Estimated future employer contributions and benefit payments [Abstract] | |||||
2015 | 21 | ||||
2016 | 34 | ||||
2017 | 45 | ||||
2018 | 75 | ||||
2019 | 101 | ||||
Years 2020-2024 | 407 | ||||
Assumed health care cost trend rates [Abstract] | |||||
Trend rate assumed for next fiscal year (in hundredths) | 7.55% | ||||
Ultimate health care cost trend rate (in hundredths) | 4.50% | ||||
Year that rate reaches ultimate trend rate | 2027 | ||||
Effect of one percentage point increase in health care cost trend rates on accumulated postretirement benefit obligation | 122 | ||||
Effect of one percentage point increase in health care cost trend rates on net periodic postretirement benefit cost | 15 | ||||
Effect of one percentage point decrease in health care cost trend rates on accumulated postretirement benefit obligation | 106 | ||||
Effect of one percentage point decrease in health care cost trend rates on net periodic postretirement benefit cost | 13 | ||||
Weighted average discount rate used in determining the accumulated postretirement benefit obligation (in hundredths) | 3.30% | 4.20% | |||
Pension fund [Abstract] | |||||
Percentage that plans in the red zone are generally funded, maximum (in hundredths) | 65.00% | ||||
Percentage that plans in the yellow zone are generally funded, maximum (in hundredths) | 80.00% | ||||
Percentage that plans in the green zone are generally funded, minimum (in hundredths) | 80.00% | ||||
Increase in number of covered employees (in hundredths) | 4.50% | ||||
Increase in the 2014 contribution rate (in hundredths) | 4.00% | ||||
Contributions to multiemployer pension fund as a percentage of total contributions to fund, maximum (in hundredths) | 5.00% | ||||
Contributions of Balchem Corporation | 498 | 451 | 415 | ||
Surcharge Imposed | $0 | ||||
Expiration Date of collective-Bargaining Agreement | 31-May-17 | ||||
[1] | Stop loss reimbursement credit received in 2014. |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | Dec. 31, 2007 | Dec. 31, 2006 | Dec. 31, 2005 | Dec. 31, 2004 |
Area | |||||||||||
sqft | |||||||||||
Seller | |||||||||||
Operating Leased Assets [Line Items] | |||||||||||
Operating lease term | 6 years | ||||||||||
Office space subject to operating lease | 20,000 | ||||||||||
Rent expense charged to operations | $1,595 | $1,040 | $965 | ||||||||
Aggregate future minimum rental payments required under non-cancelable operating leases [Abstract] | |||||||||||
2015 | 1,811 | ||||||||||
2016 | 1,430 | ||||||||||
2017 | 1,170 | ||||||||||
2018 | 923 | ||||||||||
2019 | 448 | ||||||||||
Thereafter | 2,103 | ||||||||||
Total minimum lease payments | 7,885 | ||||||||||
Slate Hill, New York site [Abstract] | |||||||||||
Annual monitoring costs, maximum | $5 | $5 | $5 | $5 | $5 | $5 | $5 | $5 | $5 | $5 | $5 |
Verona, Missouri facility [Abstract] | |||||||||||
Number of areas of the site in which capping of areas of residual contamination was performed | 4 | ||||||||||
Monitoring period for groundwater and surface water prior to submission of risk assessment report | 2 years | ||||||||||
Number of sellers who have the benefit of certain contractual indemnification by the prior owner | 1 |
FAIR_VALUE_OF_FINANCIAL_INSTRU1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Certificates of Deposit [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $0 | $109,000 |
Money Market Funds [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $772 | $50,764 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in accumulated other comprehensive income (loss) [Abstract] | |||
Net foreign currency translation adjustment | ($2,972) | $856 | $342 |
Net change in postretirement benefit plan (see Note 10 for further information) [Abstract] | |||
Net (loss)/gain arising during the period | 191 | 162 | -235 |
Amortization of prior service credit | -18 | -18 | -18 |
Amortization of (loss)/gain | 6 | 17 | 4 |
Total before tax | 179 | 161 | -249 |
Tax | -56 | -60 | 86 |
Net of tax | 123 | 101 | -163 |
Other comprehensive income (loss) | ($2,849) | $957 | $179 |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment | |||||||||||
SEGMENT INFORMATION [Abstract] | |||||||||||
Number of operating segments | 3 | ||||||||||
Segment reporting information, by segment [Abstract] | |||||||||||
Net sales | $162,668 | $160,490 | $132,230 | $85,995 | $81,633 | $87,593 | $83,296 | $84,651 | $541,383 | $337,173 | $310,393 |
Earnings before income taxes | 25,180 | 23,209 | 15,291 | 13,372 | 16,213 | 17,060 | 16,682 | 15,863 | 77,052 | 65,818 | 59,844 |
Transaction costs, integration costs and legal settlement | -652 | 0 | 0 | ||||||||
Interest and other income, net | -5,091 | 216 | 67 | ||||||||
Depreciation and amortization | 30,067 | 10,474 | 9,641 | ||||||||
Total assets | 861,271 | 376,872 | 861,271 | 376,872 | 312,545 | ||||||
Capital expenditures | 13,199 | 8,187 | 13,883 | ||||||||
Specialty Products [Member] | Reportable Segments [Member] | |||||||||||
Segment reporting information, by segment [Abstract] | |||||||||||
Net sales | 54,053 | 51,086 | 49,990 | ||||||||
Earnings before income taxes | 21,316 | 20,224 | 20,332 | ||||||||
Depreciation and amortization | 1,330 | 1,386 | 1,369 | ||||||||
Total assets | 24,913 | 24,850 | 24,913 | 24,850 | 26,964 | ||||||
Capital expenditures | 896 | 725 | 836 | ||||||||
Sensory Effects [Member] | Reportable Segments [Member] | |||||||||||
Segment reporting information, by segment [Abstract] | |||||||||||
Net sales | 206,101 | 47,569 | 44,070 | ||||||||
Earnings before income taxes | 21,260 | 11,233 | 11,335 | ||||||||
Depreciation and amortization | 21,031 | 1,356 | 1,444 | ||||||||
Total assets | 655,870 | 22,343 | 655,870 | 22,343 | 21,393 | ||||||
Capital expenditures | 3,342 | 1,318 | 924 | ||||||||
Animal Nutrition and Health [Member] | Reportable Segments [Member] | |||||||||||
Segment reporting information, by segment [Abstract] | |||||||||||
Net sales | 281,229 | 238,518 | 216,333 | ||||||||
Earnings before income taxes | 40,219 | 34,145 | 28,110 | ||||||||
Depreciation and amortization | 7,706 | 7,732 | 6,828 | ||||||||
Total assets | 122,980 | 116,710 | 122,980 | 116,710 | 116,035 | ||||||
Capital expenditures | 8,961 | 6,144 | 12,123 | ||||||||
Other Unallocated [Member] | |||||||||||
Segment reporting information, by segment [Abstract] | |||||||||||
Total assets | $57,508 | $212,969 | $57,508 | $212,969 | $148,153 |
SEGMENT_INFORMATION_Geographic
SEGMENT INFORMATION, Geographic Revenue Information and Geographic Area Data - Long-Lived Assets (Excluding Intangible Assets) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $162,668 | $160,490 | $132,230 | $85,995 | $81,633 | $87,593 | $83,296 | $84,651 | $541,383 | $337,173 | $310,393 |
Long-lived assets, excluding intangible assets [Abstract] | |||||||||||
Long-lived assets, excluding intangible assets | 131,588 | 54,916 | 131,588 | 54,916 | 52,725 | ||||||
United States [Member] | Reportable Geographical Components [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 420,324 | 227,651 | 207,490 | ||||||||
Long-lived assets, excluding intangible assets [Abstract] | |||||||||||
Long-lived assets, excluding intangible assets | 121,090 | 43,078 | 121,090 | 43,078 | 41,183 | ||||||
Foreign Countries [Member] | Reportable Geographical Components [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 121,059 | 109,522 | 102,903 | ||||||||
Italy [Member] | Reportable Geographical Components [Member] | |||||||||||
Long-lived assets, excluding intangible assets [Abstract] | |||||||||||
Long-lived assets, excluding intangible assets | $10,498 | $11,838 | $10,498 | $11,838 | $11,542 |
SUPPLEMENTAL_CASH_FLOW_INFORMA2
SUPPLEMENTAL CASH FLOW INFORMATION (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash paid during the year for [Abstract] | |||
Income taxes | $25,304 | $12,096 | $14,836 |
Interest | 4,685 | 40 | 6 |
Non-cash financing activities [Abstract] | |||
Dividends payable | $9,251 | $7,856 | $0 |
QUARTERLY_FINANCIAL_INFORMATIO2
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) [Abstract] | |||||||||||
Net sales | $162,668 | $160,490 | $132,230 | $85,995 | $81,633 | $87,593 | $83,296 | $84,651 | $541,383 | $337,173 | $310,393 |
Gross profit | 44,135 | 44,487 | 32,335 | 23,215 | 23,782 | 24,522 | 24,885 | 24,232 | 144,172 | 97,421 | 89,539 |
Earnings before income taxes | 25,180 | 23,209 | 15,291 | 13,372 | 16,213 | 17,060 | 16,682 | 15,863 | 77,052 | 65,818 | 59,844 |
Net earnings | $19,022 | $15,178 | $9,732 | $8,894 | $10,747 | $11,657 | $11,582 | $10,888 | $52,826 | $44,874 | $40,005 |
Basic net earnings per common share (in dollars per share) | $0.62 | $0.50 | $0.32 | $0.30 | $0.36 | $0.39 | $0.39 | $0.37 | $1.74 | $1.51 | $1.38 |
Diluted net earnings per common share (in dollars per share) | $0.61 | $0.49 | $0.31 | $0.29 | $0.35 | $0.38 | $0.38 | $0.36 | $1.69 | $1.45 | $1.32 |
Schedule_II_Valuation_and_Qual1
Schedule II Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Allowance for Doubtful Accounts [Member] | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at Beginning of Year | $115 | $115 | $58 | |||
Additions Charged (Credited) to Costs and Expenses | 238 | 0 | 57 | |||
Deductions | -65 | [1] | 0 | 0 | ||
Balance at End of Year | 288 | 115 | 115 | |||
Inventory Reserve [Member] | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at Beginning of Year | 181 | 236 | 132 | |||
Additions Charged (Credited) to Costs and Expenses | 2,073 | 97 | 142 | |||
Deductions | -572 | [1] | -152 | [1] | -38 | [1] |
Balance at End of Year | $1,682 | $181 | $236 | |||
[1] | represents write-offs |