Description of Business, Basis of Consolidation and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2013

Summary of Business Sales and Gross Profit Information

Based on similar economic and operational characteristics, the Company’s business is aggregated into one reportable segment. Selective enterprise information is as follows:


	2013		2012		2011
Net sales:
Insecticides	$	193,623	$	194,060	$	137,460
Herbicides/soil fumigants/fungicides		121,042		89,899		90,782
Other, including plant growth regulators		31,849		45,581		43,826

Total crop		346,514		329,540		272,068
Non-crop		34,507		36,650		29,012

	$	381,021	$	366,190	$	301,080

Gross profit:
Crop	$	155,275	$	142,019	$	110,348
Non-crop		16,072		19,106		12,720

	$	171,347	$	161,125	$	123,068

Summary of Operating Expense

Operating expenses include cost centers for Selling, General and Administrative, Research and Product Development, Regulatory/Registration, Freight, Delivery and Warehousing.


	2013		2012		2011
Selling	$	32,929	$	25,869	$	23,318
General and administrative		33,536		29,715		21,429
Research, product development and regulatory		21,644		20,750		18,041
Freight, delivery and warehousing		27,503		25,468		21,054

	$	115,612	$	101,802	$	83,842

Components of Inventories

The components of inventories consist of the following:


	2013		2012
Finished products	$	126,872	$	74,900
Raw materials	$	12,958		13,051

	$	139,830	$	87,951

Impact of Derivatives on Statement of Operations

The following tables illustrate the impact of derivatives on the Company’s statement of operations for the year ended December 31, 2013.


The Effect of Derivative Instruments on the Statement of Financial Performance For the Period Ended December 31
Derivatives in ASC 815 Cash Flow	Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)						Location of Gain or (Loss) Reclassified from Accumulated OCI into Income		Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)						Location of Gain or (Loss) Recognized in Income on Derivative		Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion)
Hedging Relationships	2013			2012			(Effective Portion)		2013			2012			(Ineffective Portion)		2013			2012
Interest rate contracts	$	(75	)	$	(472	)		Interest expense	$	(712	)	$	(721	)		Interest expense	$	(1	)	$	(1	)

Total	$	(75	)	$	(472	)			$	(712	)	$	(721	)			$	(1	)	$	(1	)


Derivatives Not Designated as Hedging Instruments	Location of Gain or (Loss) Recognized in Income on	Amount of Gain or (Loss) Recognized in Income on Derivative
under ASC 815	Derivative	2013		2012
Foreign exchange contracts	Other income/(expense)	$	—	$	(160	)

Total		$	—	$	(160	)

Derivative Liabilities Recognized In Current Installments of Other Liabilities in Consolidated Balance Sheets

The gross amount of derivative liabilities is equal to the net amount recognized in current installments of other liabilities in the consolidated balance sheets, as shown in the below table:


									Gross Amounts Not Offset in the Statement of Financial Position
Description	Gross Amounts of Recognized Liabilities			Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Liabilities Presented in the Statement of Financial Position			Financial Instruments		Cash Collateral Pledged		Net Amount
Derivatives by counterparty:
Bank of the West	$	(564	)	$	—	$	(564	)	$	—	$	—	$	(564	)

Total	$	(564	)	$	—	$	(564	)	$	—	$	—	$	(564	)

Foreign Currency Derivatives to Hedge Foreign Currency Balances Measured at Fair Value


	Fair Value Measurements Using Input Type
	Level 1		Level 2		Level 3
As of December 31, 2013:
Liability:
Interest rate derivative financial instruments (1)	$	—	$	564	$	—

Foreign currency derivative financial instrument	$	—	$	—	$	—

As of December 31, 2012:
Liability:
Interest rate derivative financial instruments (1)	$	—	$	1,201	$	—

Foreign currency derivative financial instrument	$	—	$	160	$	—

(1)	Includes accrued interest expense.

Components of Basic and Diluted Earnings per Share

The components of basic and diluted earnings per share were as follows:


	2013		2012		2011
Numerator:
Net income attributable to American Vanguard	$	34,449	$	36,867	$	22,068

Denominator:
Weighted average shares outstanding—basic		28,301		27,914		27,559
Dilutive effect of stock options and grants		598		842		316

		28,899		28,756		27,875

Summary of Value Option Grants Using Weighted Average Assumptions

The Company uses the Black-Scholes option-pricing model (“Black-Scholes model”) to value option grants using the following weighted average assumptions:


	2011
Risk free interest rate		2.26	%
Dividend yield		0.05	%
Volatility factor		55.31	%
Weighted average life (years)		6.0 years

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References+ Details