Significant Accounting Policies [Text Block] | NOTE 1 a) Business description Superior’s Uniforms and Related Products segment, through its signature marketing brands Fashion Seal Healthcare ® , HPI Direct ® ® ®, manufactures and sells a wide range of uniforms, corporate identity apparel, career apparel and accessories for the hospital and healthcare fields; hotels; fast food and other restaurants; transportation; and the private security, industrial and commercial markets. In excess of 95% Superior services its Remote Staffing Solutions segment through multiple The Office Gurus entities, including its direct and indirect subsidiaries in El Salvador, Belize, and the United States, (collectively, “TOG”). TOG is a near-shore premium provider of cost effective multilingual telemarketing and total office support solutions. The Promotional Products segment, through the BAMKO brand, services customers that purchase primarily promotional and related products. The segment currently has sales offices in the United States, England and Brazil with support services in China, Hong Kong and India. b) Basis of presentation The consolidated financial statements include the accounts of Superior Uniform Group, Inc. and its wholly-owned subsidiaries, The Office Gurus, LLC, SUG Holding, Fashion Seal Corporation, and BAMKO, LLC; The Office Gurus, Ltda, de C.V., The Office Masters, Ltda., de C.V. and The Office Gurus, Ltd., each a subsidiary of Fashion Seal Corporation and SUG Holding; and Power Three Web, Ltda. and Superior Sourcing, each a wholly-owned subsidiary of SUG Holding; BAMKO Importação, Exportação e Comércio de Brindes Ltda., a subsidiary of BAMKO, LLC and SUG Holding; Guangzhou Ben Gao Trading Limited, Worldwide Sourcing Solutions Limited, and BAMKO UK, Limited, each a direct or indirect subsidiary of BAMKO, LLC, and BAMKO India Private Limited, a 99% c) Cash and cash equivalents The Company considers all highly liquid investments with an original maturity of three d) Revenue recognition and allowance for doubtful accounts The Company recognizes revenue as products are shipped and title passes and as services are provided. The Company collects sales tax for various taxing authorities. It is the Company’s policy to record these amounts on a net basis. Therefore, these amounts are not included in net sales for the Company. A provision for estimated returns and allowances is recorded based upon historical experience and current allowance programs. Judgments and estimates are used in determining the collectability of accounts receivable. The Company analyzes specific accounts receivable and historical bad debt experience, customer credit worthiness, current economic trends and the age of outstanding balances when evaluating the adequacy of the allowance for doubtful accounts. Management judgments and estimates are used in connection with establishing the allowance in any accounting period. Changes in estimates are reflected in the period they become known. Charge-offs of accounts receivable are made once all collection efforts have been exhausted. If the financial condition of the Company's customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may e) Accounts receivable-other The Company purchases raw materials and has them delivered to certain suppliers of the Company. The Company pays for the raw materials and then deducts the cost of these materials from payments to the suppliers at the time the related finished goods are invoiced to the Company by those suppliers. f) Advertising expenses The Company expenses advertising costs as incurred. Advertising costs for the years ended December 31, 2016, 2015 2014, $61,000, $135,000 $114,000. g) Cost of goods sold and shipping and handling fees and costs Cost of goods sold consists primarily of direct costs of acquiring inventory, including cost of merchandise, inbound freight charges, purchasing, receiving and inspection costs, for our Uniforms and Related Products segment and our Promotional Products segment. Cost of goods sold for our Remote Staffing Solutions segment includes salaries and payroll related benefits for agents. The Company includes shipping and handling fees billed to customers in net sales. Shipping and handling costs associated with out-bound freight are generally recorded in cost of goods sold. Other shipping and handling costs are included in selling and administrative expenses and totaled $10,577,000, $9,327,000 $9,170,000 December 31, 2016, 2015 2014, h) Inventories Inventories are stated at the lower of cost (first first may i) Property, plant and equipment Property, plant and equipment are stated at cost, less accumulated depreciation and amortization. Major renewals and improvements are capitalized, while replacements, maintenance and repairs which do not improve or extend the life of the respective assets are expensed on a current basis. Costs of assets sold or retired and the related accumulated depreciation and amortization are eliminated from accounts and the net gain or loss is reflected in the consolidated statements of comprehensive income within selling and administrative expenses. j) Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. The Company tests goodwill for impairment annually as of December 31st may • macroeconomic conditions such as deterioration in general economic conditions, limitations on accessing capital, or other developments in equity and credit markets; • industry and market considerations such as a deterioration in the environment in which the Company operates, an increased competitive environment, a decline in market-dependent multiples or metrics (considered in both absolute terms and relative to peers), a change in the market for the Company's products or services, or a regulatory or political development; • cost factors such as increases in raw materials, labor, or other costs that have a negative effect on earnings and cash flows; • overall financial performance such as negative or declining cash flows or a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods; • other relevant entity-specific events such as changes in management, key personnel, strategy, or customers. Goodwill is tested at a level of reporting referred to as "the reporting unit." The Company's reporting units are defined as each of its three $4,135,000 $7,134,000 An entity has the option to first 50%) December 31, 2016 k) Other intangible assets Other intangible assets consist of customer relationships, a non-compete agreement and trade names acquired in previous business acquisitions. The cost, amortization and net value of customer relationships and non-compete agreement as of December 31, 2016 2015 were as follows: Customer Relationships Weighted Average Life (years) Non-Compete Agreement Weighted Average Life (years) December 31, 2016 Cost $ 12,311,000 9.4 $ 5,370,000 5.1 Accumulated amortization (4,490,000 ) (3,553,000 ) Net $ 7,821,000 $ 1,817,000 December 31, 2015 Cost $ 10,221,000 9.6 $ 5,000,000 5 Accumulated amortization (3,199,000 ) (2,500,000 ) Net $ 7,022,000 $ 2,500,000 Amortization expense for other intangible assets was $2,343,000, $2,066,000 $2,065,000 December 31, 2016, 2015 2014, $2,282,000 December 31, 2017; $1,782,000 2018; $1,282,000 December 31, 2019 2021; $1,218,000 2022; $510,000 2023. As part of the acquisition of HPI in 2013, $4,700,000 As part of the acquisition of BAMKO in 2016, $8,900,000 l) Depreciation and amortization Plant and equipment are depreciated on the straight-line basis at 2.5% 5% 2.5% 20% 10% 33.33% 20% 33.33% m) Employee benefits Pension plan costs are funded currently based on actuarial estimates, with prior service costs amortized over 20 n) Insurance The Company self-insures for certain obligations related to employee health programs. The Company also purchases stop-loss insurance policies to protect it from catastrophic losses. Judgments and estimates are used in determining the potential value associated with reported claims and for losses that have occurred, but have not been reported. The Company's estimates consider historical claim experience and other factors. The Company's liabilities are based on estimates, and, while the Company believes that the accrual for loss is adequate, the ultimate liability may o) Taxes on income Income taxes are provided for under the liability method, whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The calculation of the Company’s tax liabilities also involves dealing with uncertainties in the application of complex tax regulations. The Company recognizes liabilities for uncertain income tax positions based on estimates of whether, and the extent to which, additional taxes will be required. The Company also reports interest and penalties related to uncertain income tax positions as income taxes. Refer to Note 7. p) Impairment of long-lived assets Long-lived assets, such as property 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 no December 31, 2016, 2015, 2014. q) Share-based compensation The Company awards share-based compensation as an incentive for employees to contribute to the Company’s long-term success. Historically, the Company has granted options, stock-settled stock appreciation rights, and restricted stock. In 2016, December 31, 2016, 3,945,981 2013 The Company recognizes share-based compensation expense for all awards granted to employees, which is based on the fair value of the award on the date of grant. Determining the appropriate fair value model and calculating the fair value of stock compensation awards requires the input of certain highly complex and subjective assumptions, including the expected life of the stock compensation awards and the Company’s common stock price volatility, risk free interest rate and dividend rate. The assumptions used in calculating the fair value of stock compensation awards represent management’s best estimates, but these estimates involve inherent uncertainties and the application of judgment. As a result, if factors change and the Company deems it necessary to use different assumptions, stock compensation expense could be materially different from what has been recorded in the current period. r) Earnings per share Historical basic per share data is based on the weighted average number of shares outstanding. Historical diluted per share data is reconciled by adding to weighted average shares outstanding the dilutive impact of the exercise of outstanding stock options, stock-settled stock appreciation rights, and restricted stock. s) Comprehensive income Other comprehensive income (loss) is defined as the change in equity during a period, from transactions and other events, excluding changes resulting from investments by owners (e.g., supplemental stock offering) and distributions to owners (e.g., dividends). t) Operating segments The Financial Accounting Standards Board (“FASB”) establishes standards for the way that public companies report information about operating segments in annual financial statements and establishes standards for related disclosures about product and services, geographic areas and major customers. The Company has reviewed the standard and determined that it has three u) Risks and concentrations Financial instruments that potentially subject the Company to concentrations of credit risk include cash in banks in excess of federally insured amounts. The Company manages this risk by maintaining all deposits in high quality financial institutions and periodically performing evaluations of the relative credit standing of the financial institutions. When assessing credit risk the Company considers whether the credit risk exists at both the individual and group level. Consideration is given to the activity, region and economic characteristics when assessing if there exists a group concentration risk. At December 31, 2016 2015, 7.8% December 31, 2016 2015, five $12,870,000 $7,702,000, 30.8% 25.7% December 31, 2016, 2015, 2014 $19,312,000, $12,537,000 $11,215,000, 7.6%, 6.0% 5.7% five December 31, 2016, 2015 2014 $57,632,000, $48,900,000 $43,153,000, 22.8%, 23.3% 22.0% Included in accounts receivable-other on the Company’s consolidated balance sheets at December 31, 2016 2015 $2,253,000 $2,569,000, In 2016 2015 31% 26%, 2016 2015, 32% 42%, 2016 59% v) Fair value of financial instruments The carrying amounts of cash and cash equivalents, receivables and accounts payable approximated fair value as of December 31, 2016 2015, w) Stock Split On December 29, 2014, 2 1 January 12, 2015, February 4, 2015. 2 1 x) Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. y) Recent Accounting Pronouncements In May 2014, 2014 09, 606) five January 1, 2018. may third 2017 January 1, 2018. In April 2015, 2015 03 December 15, 2015. January 1, 2016, 6.) In February 2016, 2016 02 December 15, 2018. In March 2016, 2016 09, 718): December 15, 2016. fourth 2016 January 1, 2016. $407,000 three December 31, 2016. fourth $182,000 three March 31, 2016, $233,000 three June 30, 2016, $61,000 three September 30, 2016, first, second, third 2016. December 31, 2016 $882,000 $0.06 $1,575,000 $263,000 2015 2014 2016. |