Year Ended December 31, | |||||||||||
ICP’s Operating results: | 2017 | 2016 | 2015 | ||||||||
Net sales(a) | $ | 78,062 | $ | 177,401 | $ | 166,905 | |||||
Cost of sales and expenses(b) | (79,224 | ) | (163,837 | ) | (146,098 | ) | |||||
Net income | $ | (1,162 | ) | $ | 13,564 | (c) | $ | 20,807 |
(a) | Includes related party sales to MGPI of $17,672, $27,675, and $38,941 for 2017, 2016, and 2015, respectively. |
(b) | Includes depreciation and amortization of $1,720, $3,030, and $2,634 for 2017, 2016, and 2015, respectively. |
(c) | Includes business interruption insurance proceeds of $4,112 for 2015. |
NOTE 13: | DERIVATIVE INSTRUMENTS |
Year Ended December 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Interest costs charged to expense | $ | 1,184 | $ | 1,294 | $ | 534 | ||||||
Plus: Interest cost capitalized | 293 | 198 | 297 | |||||||||
Total | $ | 1,477 | $ | 1,492 | $ | 831 |
December 31, | |||||||
2017 | 2016 | ||||||
Identifiable Assets | |||||||
Distillery products | $ | 191,321 | $ | 161,059 | |||
Ingredient solutions | 28,950 | 27,109 | |||||
Corporate | 20,057 | (a) | 37,168 | ||||
Total(b) | $ | 240,328 | $ | 225,336 |
(a) | Reflects the 2017 sale of ICP, the Company's equity method investment (Note 3). |
(b) | The Company has no assets located in foreign countries. |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
ICP (30% interest) | $ | (348 | ) | $ | 4,069 | $ | 6,242 | ||||
DMI (50% interest) | — | (33 | ) | (140 | ) | ||||||
Total | $ | (348 | ) | $ | 4,036 | $ | 6,102 |
NOTE 16: | ACQUISITION |
Consideration: | |||
Cash | $ | 1,551 | |
Contingent consideration arrangement (included in Other non-current liabilities on the Consolidated Balance Sheets) | 350 | ||
Fair value of total consideration transferred | $ | 1,901 | |
Recognized amounts of identifiable assets acquired: | |||
Inventory | $ | 51 | |
Total identifiable net assets assumed | $ | 51 | |
Goodwill and Brand name (indefinite lived) (included in Other assets on the Consolidated Balance Sheets) (Note 4) | 1,850 | ||
Total | $ | 1,901 |
NOTE 12: | SUPPLEMENTAL CASH FLOW INFORMATION |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Non-cash investing and financing activities: | |||||||||||
Purchase of property, plant, and equipment in accounts payable | $ | 4,522 | $ | 4,364 | $ | 1,784 | |||||
Additional cash payment information: | |||||||||||
Interest paid | 1,489 | 1,467 | 818 | ||||||||
Income taxes paid | 13,526 | 16,409 | 9,393 |
NOTE 8: | COMMITMENTS AND CONTINGENCIES |
NOTE 10: | CONCENTRATIONS |
Year Ending December 31, | |||||
2018 | $ | 372 | |||
2019 | 386 | ||||
2020 | 400 | ||||
2021 | 2,016 | ||||
2022 | 6,890 | ||||
Thereafter | 15,200 | ||||
Total | $ | 25,264 |
NOTE 5: | CORPORATE BORROWINGS |
December 31, | |||||||||
Description(a) | 2017 | 2016 | |||||||
Credit Agreement - Revolver, 2.935% (variable rate) due 2022 | $ | 3,298 | $ | 16,000 | (c) | ||||
Credit Agreement - Fixed Asset Sub-Line term loan (closed August 23, 2017 - see below) | — | 5,253 | (c) | ||||||
Credit Agreement - Term Loan (closed August 23, 2017 - see below) | — | 13,000 | (c) | ||||||
Secured Promissory Note, 3.71% (fixed rate) due 2022 | 1,966 | 2,324 | |||||||
Prudential Note Purchase Agreement, 3.53% (fixed rate) due 2027 | 20,000 | — | |||||||
Total indebtedness outstanding | 25,264 | 36,577 | |||||||
Less unamortized loan fees(b) | (710 | ) | (576 | ) | |||||
Total indebtedness outstanding, net | 24,554 | 36,001 | |||||||
Less current maturities of long-term debt | (372 | ) | (4,359 | ) | |||||
Long-term debt | $ | 24,182 | $ | 31,642 |
Year Ending December 31, | |||||
2018 | $ | 372 | |||
2019 | 386 | ||||
2020 | 400 | ||||
2021 | 2,016 | ||||
2022 | 6,890 | ||||
Thereafter | 15,200 | ||||
Total | $ | 25,264 |
NOTE 3: | EQUITY METHOD INVESTMENTS |
Year Ended December 31, | |||||||||||
ICP’s Operating results: | 2017 | 2016 | 2015 | ||||||||
Net sales(a) | $ | 78,062 | $ | 177,401 | $ | 166,905 | |||||
Cost of sales and expenses(b) | (79,224 | ) | (163,837 | ) | (146,098 | ) | |||||
Net income | $ | (1,162 | ) | $ | 13,564 | (c) | $ | 20,807 |
(a) | Includes related party sales to MGPI of $17,672, $27,675, and $38,941 for 2017, 2016, and 2015, respectively. |
(b) | Includes depreciation and amortization of $1,720, $3,030, and $2,634 for 2017, 2016, and 2015, respectively. |
(c) | Includes business interruption insurance proceeds of $4,112 for 2015. |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
ICP (30% interest) | $ | (348 | ) | $ | 4,069 | $ | 6,242 | ||||
DMI (50% interest) | — | (33 | ) | (140 | ) | ||||||
Total | $ | (348 | ) | $ | 4,036 | $ | 6,102 |
December 31, | |||||||
2017 | 2016 | ||||||
ICP (30% interest) | $ | — | $ | 18,934 |
December 31, | |||||||
2017 | 2016 | ||||||
ICP (30% interest) | $ | — | $ | 18,934 |
NOTE 4: | GOODWILL AND OTHER INTANGIBLE ASSETS |
December 31, | |||||||||
2017 | 2016 | ||||||||
Goodwill | $ | 1,500 | $ | 1,500 | |||||
Brand name (indefinite lived) | 350 | 350 | |||||||
Other intangible asset, net | 28 | — | |||||||
Balance as of December 31, 2017 | $ | 1,878 | $ | 1,850 |
NOTE 6: | INCOME TAXES |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Current: | |||||||||||
Federal | $ | 14,020 | $ | 12,637 | $ | 8,954 | |||||
State | 379 | 342 | 1,003 | ||||||||
14,399 | 12,979 | 9,957 | |||||||||
Deferred: | |||||||||||
Federal | (3,764 | ) | (254 | ) | 3,174 | ||||||
State | 300 | 808 | (904 | ) | |||||||
(3,464 | ) | 554 | 2,270 | ||||||||
Total | $ | 10,935 | $ | 13,533 | $ | 12,227 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
\"Expected\" provision at federal statutory rate | $ | 18,465 | $ | 15,651 | $ | 13,446 | |||||
State income taxes, net | 1,612 | 1,672 | 1,714 | ||||||||
Change in valuation allowance | (578 | ) | (718 | ) | (2,385 | ) | |||||
Domestic production activity deduction | (957 | ) | (1,247 | ) | (1,002 | ) | |||||
Share-based compensation(a) | (4,254 | ) | (1,408 | ) | N/A | ||||||
Compensation limits | 931 | — | — | ||||||||
Federal and state tax credits | (1,058 | ) | (1,065 | ) | — | ||||||
Tax benefit from the Tax Act | (3,343 | ) | — | — | |||||||
Other | 117 | 648 | 454 | ||||||||
Income tax expense | $ | 10,935 | $ | 13,533 | $ | 12,227 | |||||
Effective tax rate | 20.7 | % | 30.3 | % | 31.8 | % |
(a) | The Company elected to early adopt ASU No. 2016-09, Compensation—Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting, in the quarter ended September 30, 2016 and, due to a required change in accounting principle, beginning that quarter, all excess tax benefits and deficiencies related to employee stock compensation are recognized within income tax expense in the Consolidated Statements of Income. The Company received federal tax benefits in 2017 and 2016 of $4,254 and $1,408, respectively, and state benefits of $371 and $163, respectively, for excess tax benefits. |
December 31, | |||||||
2017 | 2016 | ||||||
Deferred income tax assets: | |||||||
Post-retirement liability | $ | 910 | $ | 1,621 | |||
Deferred income | 543 | 1,176 | |||||
Share-based compensation | 1,158 | 1,313 | |||||
Capital loss carryforwards | — | 716 | |||||
State tax credit carryforwards | 3,488 | 3,204 | |||||
State operating loss carryforwards | 1,434 | 1,151 | |||||
Inventories | 1,346 | 2,560 | |||||
Other | 766 | 1,381 | |||||
Gross deferred income tax assets | $ | 9,645 | $ | 13,122 | |||
Less: valuation allowance | (148 | ) | (726 | ) | |||
Net deferred income tax assets | 9,497 | 12,396 | |||||
Deferred income tax liabilities: | |||||||
Fixed assets | (9,255 | ) | (14,313 | ) | |||
Equity method investments | — | (969 | ) | ||||
Other | (254 | ) | (546 | ) | |||
Gross deferred income tax liabilities | (9,509 | ) | (15,828 | ) | |||
Net deferred income tax liability | $ | (12 | ) | $ | (3,432 | ) |
Valuation allowance | ||||
Balance at December 31, 2015 | $ | 1,444 | ||
Reductions | 718 | |||
Balance at December 31, 2016 | $ | 726 | ||
Reductions | 578 | |||
Balance at December 31, 2017 | $ | 148 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Beginning of year balance | $ | 43 | $ | 613 | $ | 613 | |||||
Additions for tax positions of prior years | 130 | 2 | — | ||||||||
Additions for tax positions of the current year | 12 | 21 | — | ||||||||
Reduction for prior year tax positions | — | (48 | ) | — | |||||||
Reductions for settlements | — | (545 | ) | — | |||||||
End of year balance | $ | 185 | $ | 43 | $ | 613 |
NOTE 1: | NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Buildings and improvements | 20 – 40 years |
Transportation equipment | 5 – 6 years |
Machinery and equipment | 10 – 12 years |
Year Ended December 31, | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Interest costs charged to expense | $ | 1,184 | $ | 1,294 | $ | 534 | ||||||
Plus: Interest cost capitalized | 293 | 198 | 297 | |||||||||
Total | $ | 1,477 | $ | 1,492 | $ | 831 |
NOTE 9: | EMPLOYEE BENEFIT PLANS |
Pension Benefit Plans(a) | Post-Employment Benefit Plan | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2015 | 2017 | 2016 | 2015 | |||||||||||||
Change in benefit obligation: | ||||||||||||||||
Beginning of year | $ | 2,016 | $ | 4,106 | $ | 4,681 | $ | 4,926 | ||||||||
Service cost | — | 25 | 36 | 51 | ||||||||||||
Interest cost | 36 | 122 | 142 | 141 | ||||||||||||
Actuarial loss (gain) | (9 | ) | (261 | ) | (297 | ) | 45 | |||||||||
Benefits paid | (2,043 | ) | (388 | ) | (456 | ) | (482 | ) | ||||||||
Benefit obligation at end of year | $ | — | $ | 3,604 | $ | 4,106 | $ | 4,681 |
Post-Employment Benefit Plan | ||||
Year Ended December 31, | ||||
2017 | 2016 | |||
Discount rate | 2.96% | 3.15% | ||
Measurement date | December 31, 2017 | December 31, 2016 |
Post-Employment Benefit Plan | ||||||||||
Year Ended December 31, | ||||||||||
2017 | 2016 | 2015 | ||||||||
Expected return on Assets | — | — | — | |||||||
Discount rate | 3.15 | % | 3.20 | % | 2.99 | % | ||||
Average compensation increase | N/A | N/A | N/A |
Pension Benefit Plans(a) | Post-Employment Benefit Plan | |||||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||
2015 | 2017 | 2016 | 2015 | |||||||||||||
Service cost | $ | — | $ | 25 | $ | 36 | $ | 51 | ||||||||
Interest cost | 36 | 122 | 142 | 141 | ||||||||||||
Expected return on assets | (45 | ) | — | — | — | |||||||||||
Amortization of prior service cost | — | (339 | ) | (338 | ) | (338 | ) | |||||||||
Recognized net actuarial loss | 25 | 184 | 269 | 278 | ||||||||||||
Settlement losses | 414 | — | — | — | ||||||||||||
Net benefit cost (benefit) | $ | 430 | $ | (8 | ) | $ | 109 | $ | 132 |
Pension Benefit Plans(a) | Post-Employment Benefit Plan | ||||||||||||||
Year Ended December 31, | Year Ended December 31, | ||||||||||||||
2015 | 2017 | 2016 | 2015 | ||||||||||||
Net actuarial (loss) gain | $ | (35 | ) | $ | 261 | $ | 293 | $ | (35 | ) | |||||
Settlement losses | 414 | — | — | — | |||||||||||
Recognized net actuarial loss | 25 | 184 | 269 | 278 | |||||||||||
Amortization of prior service cost | — | (339 | ) | (338 | ) | (338 | ) | ||||||||
Total other comprehensive income (loss), pre-tax | 404 | 106 | 224 | (95 | ) | ||||||||||
Income tax expense (benefit) | 160 | 40 | 90 | (41 | ) | ||||||||||
Total other comprehensive income (loss), net of tax | $ | 244 | $ | 66 | $ | 134 | $ | (54 | ) |
Post-Employment Benefit Plan | ||||||||
As of December 31, | ||||||||
Benefit obligation | 2017 | 2016 | ||||||
Current | $ | (471 | ) | $ | (502 | ) | ||
Non-Current | (3,133 | ) | (3,604 | ) | ||||
Net amount recognized | $ | (3,604 | ) | $ | (4,106 | ) |
Post-Employment Benefit Plan | ||||
Actuarial net loss | $ | (92 | ) | |
Net prior service credits | 37 | |||
Net amount recognized | $ | (55 | ) |
Post-Employment Benefit Plan | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2017 | 2016 | ||||||||||||||||
Group Plan | Lifetime Prescription Cost | Medicare Supplement | Group Plan | Lifetime Prescription Cost | Medicare Supplement | ||||||||||||
Health care cost trend rate | 7.00 | % | 9.00 | % | 4.50 | % | 7.50 | % | 9.00 | % | 5.00 | % | |||||
Ultimate trend rate | 5.00 | % | 5.00 | % | 4.50 | % | 5.00 | % | 5.00 | % | 5.00 | % | |||||
Year rate reaches ultimate trend rate | 2025 | 2027 | 2018 | 2023 | 2024 | 2017 |
Post-Employment Benefit Plan | ||||||||
Expected Benefit Payments | Expected Subsidy Receipts | |||||||
2018 | $ | 486 | $ | 15 | ||||
2019 | 491 | 13 | ||||||
2020 | 469 | 11 | ||||||
2021 | 443 | 11 | ||||||
2022 | 418 | 9 | ||||||
2023-2027 | 1,221 | 30 | ||||||
Total | $ | 3,528 | $ | 89 |
Year Ended December 31, | |||||||||||||
2016 | 2015 | ||||||||||||
Shares | Weighted Average Grant-Date Fair Value | Shares | Weighted Average Grant-Date Fair Value | ||||||||||
Unvested balance at beginning of year | 128,500 | $ | 5.85 | 278,900 | $ | 6.28 | |||||||
Granted | — | — | 13,585 | 17.02 | |||||||||
Forfeited | — | — | (30,800 | ) | 6.27 | ||||||||
Vested | (128,500 | ) | 5.85 | (133,185 | ) | 7.80 | |||||||
Unvested balance at end of year | — | $ | — | 128,500 | $ | 5.85 |
Year Ended December 31, | |||||||||||||||||||||
2017 | 2016 | 2015 | |||||||||||||||||||
Units | Weighted Average Grant-Date Fair Value | Units | Weighted Average Grant-Date Fair Value | Units | Weighted Average Grant-Date Fair Value | ||||||||||||||||
Unvested balance at beginning of year | 527,486 | $ | 10.17 | 437,946 | $ | 7.09 | 413,288 | $ | 5.09 | ||||||||||||
Granted | 47,514 | 42.93 | 100,892 | 23.15 | 89,702 | 16.63 | |||||||||||||||
Forfeited | (3,508 | ) | 25.74 | (11,352 | ) | 11.55 | (54,506 | ) | 6.15 | ||||||||||||
Vested | (203,000 | ) | 4.82 | — | — | (10,538 | ) | 14.88 | |||||||||||||
Unvested balance at end of year | 368,492 | $ | 17.20 | 527,486 | $ | 10.17 | 437,946 | $ | 7.09 |
Buildings and improvements | 20 – 40 years |
Transportation equipment | 5 – 6 years |
Machinery and equipment | 10 – 12 years |
Buildings and improvements | 20 – 40 years |
Transportation equipment | 5 – 6 years |
Machinery and equipment | 10 – 12 years |
December 31, | |||||||
2017 | 2016 | ||||||
Land, buildings, and improvements | $ | 72,223 | $ | 67,487 | |||
Transportation equipment | 3,286 | 3,253 | |||||
Machinery and equipment | 175,371 | 164,871 | |||||
Construction in progress | 16,408 | 10,608 | |||||
Property, plant, and equipment, at cost | 267,288 | 246,219 | |||||
Less accumulated depreciation and amortization | (164,237 | ) | (153,428 | ) | |||
Property, plant, and equipment, net | $ | 103,051 | $ | 92,791 |
NOTE 15: | QUARTERLY FINANCIAL DATA (UNAUDITED) |
Year Ended December 31, 2017 | |||||||||||||||
Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||||
Sales | $ | 91,043 | $ | 87,852 | $ | 87,892 | $ | 91,345 | |||||||
Less: excise tax | 2,850 | 1,519 | 2,139 | 4,176 | |||||||||||
Net sales | 88,193 | 86,333 | 85,753 | 87,169 | |||||||||||
Cost of sales | 68,668 | 67,708 | 66,928 | 68,128 | |||||||||||
Gross profit | 19,525 | 18,625 | 18,825 | 19,041 | |||||||||||
SG&A expenses | 8,993 | 8,154 | 8,311 | 7,649 | |||||||||||
Operating income | 10,532 | 10,471 | 10,514 | 11,392 | |||||||||||
Gain on sale of equity method investment (Note 3)(a) | — | 11,381 | — | — | |||||||||||
Equity method investment earnings (loss) (Note 3) | — | — | (819 | ) | 471 | ||||||||||
Interest expense, net | (250 | ) | (224 | ) | (379 | ) | (331 | ) | |||||||
Income before income taxes | 10,282 | 21,628 | 9,316 | 11,532 | |||||||||||
Income tax expense (benefit) (Note 6)(b) | (2,357 | ) | 7,491 | 2,947 | 2,854 | ||||||||||
Net income | $ | 12,639 | $ | 14,137 | $ | 6,369 | $ | 8,678 | |||||||
Basic and diluted EPS data | $ | 0.74 | $ | 0.82 | $ | 0.37 | $ | 0.50 | |||||||
Dividends and dividend equivalents per common share and per unit | $ | 0.04 | $ | 0.89 | $ | 0.04 | $ | 0.04 |
(a) | Net income was positively impacted during the third quarter of 2017 by a gain on sale of equity method investment of $11,381 related to the sale of the Company's 30 percent interest in ICP to Pacific Ethanol on July 3, 2017 (Note 3). |
(b) | Net income was positively impacted during the fourth quarter of 2017 by a provisional income tax benefit of $3,343 related to the Tax Act enacted on December 22, 2017 (Note 6). |
(c) | Quarterly EPS amounts may not add to amounts for the year because quarterly and annual EPS calculations are performed separately. |
Year Ended December 31, 2016(a) (b) | |||||||||||||||
Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||||
Sales | $ | 85,005 | $ | 83,711 | $ | 82,174 | $ | 77,191 | |||||||
Less: excise tax | 3,860 | 3,820 | 1,782 | 356 | |||||||||||
Net sales | 81,145 | 79,891 | 80,392 | 76,835 | |||||||||||
Cost of sales | 63,560 | 64,770 | 64,861 | 59,789 | |||||||||||
Gross profit | 17,585 | 15,121 | 15,531 | 17,046 | |||||||||||
SG&A | 6,987 | 6,981 | 6,404 | 6,321 | |||||||||||
Other operating income, net | — | (3,385 | ) | — | — | ||||||||||
Operating income | 10,598 | 11,525 | 9,127 | 10,725 | |||||||||||
Equity method investment earnings (Note 3) | 1,776 | 664 | 1,079 | 517 | |||||||||||
Interest expense | (314 | ) | (341 | ) | (328 | ) | (311 | ) | |||||||
Income before income taxes | 12,060 | 11,848 | 9,878 | 10,931 | |||||||||||
Income tax expense (Note 6) | 3,775 | 2,316 | 3,570 | 3,872 | |||||||||||
Net income | $ | 8,285 | $ | 9,532 | $ | 6,308 | $ | 7,059 | |||||||
Basic and diluted EPS data | $ | 0.48 | $ | 0.55 | $ | 0.37 | $ | 0.41 | |||||||
Dividends and dividend equivalents per common share and per unit | $ | 0.02 | $ | 0.02 | $ | — | $ | 0.08 |
(a) | Net income was positively impacted during the third quarter of 2016 by other operating income, net, of $3,385 related to a legal settlement agreement and a gain on sale of long-lived assets and by a lower effective income tax rate related to the implementation of ASU No. 2016-09, Compensation—Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting. |
(b) | Quarterly EPS amounts may not add to amounts for the year because quarterly and annual EPS calculations are performed separately. |
Details about Accumulated Other Comprehensive Income Components | Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Post Employment Benefit Items: | ||||||
Amortization of prior service cost | $ | (339 | ) | (a) | ||
Recognized net actuarial loss | 184 | (a) | ||||
(155 | ) | |||||
40 | Tax expense | |||||
$ | (115 | ) | Net of tax | |||
Equity Method Investment Adjustment: | ||||||
Accumulated postretirement benefit obligation | $ | 7 | ||||
(3 | ) | Tax benefit | ||||
$ | 4 | Net of tax | ||||
Reclassifications for 2017 | $ | (111 | ) | Total net of tax |
(a) | These accumulated other comprehensive income components are included in the computation of net period post-employment benefit cost (Note 9). |
NOTE 14: | RELATED PARTY TRANSACTIONS |
December 31, | |||||||
2017 | 2016 | ||||||
Employee benefit plans | $ | 962 | $ | 820 | |||
Salaries and wages | 7,452 | 5,641 | |||||
Property taxes | 1,185 | 824 | |||||
Other | 1,572 | 1,660 | |||||
Total | $ | 11,171 | $ | 8,945 |
Pension Plan Items | (a) | Post-Employment Benefit Plan Items | Other | Total | ||||||||||||
Balance, December 31, 2014 | $ | (244 | ) | $ | (456 | ) | $ | (32 | ) | $ | (732 | ) | ||||
Other comprehensive income (loss) before reclassifications | (355 | ) | 47 | (10 | ) | (318 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income | 599 | (101 | ) | 52 | 550 | |||||||||||
Net 2015 other comprehensive income (loss) | 244 | (54 | ) | 42 | 232 | |||||||||||
Balance, December 31, 2015 | $ | — | $ | (510 | ) | $ | 10 | $ | (500 | ) | ||||||
Other comprehensive income (loss) before reclassifications | — | 113 | (14 | ) | 99 | |||||||||||
Amounts reclassified from accumulated other comprehensive income | — | 21 | 7 | 28 | ||||||||||||
Net 2016 other comprehensive income (loss) | — | 134 | (7 | ) | 127 | |||||||||||
Balance, December 31, 2016 | $ | — | $ | (376 | ) | $ | 3 | $ | (373 | ) | ||||||
Other comprehensive income (loss) before reclassifications | — | 181 | (8 | ) | 173 | |||||||||||
Amounts reclassified from accumulated other comprehensive income | — | (115 | ) | 4 | (111 | ) | ||||||||||
Net 2017 other comprehensive income (loss) | — | 66 | (4 | ) | 62 | |||||||||||
Balance, December 31, 2017 | $ | — | $ | (310 | ) | $ | (1 | ) | $ | (311 | ) |
(a) | The Company's pension benefit plans were terminated in June 2015. |
Post-Employment Benefit Plan | ||||||||
As of December 31, | ||||||||
Benefit obligation | 2017 | 2016 | ||||||
Current | $ | (471 | ) | $ | (502 | ) | ||
Non-Current | (3,133 | ) | (3,604 | ) | ||||
Net amount recognized | $ | (3,604 | ) | $ | (4,106 | ) |
Post-Employment Benefit Plan | ||||
Year Ended December 31, | ||||
2017 | 2016 | |||
Discount rate | 2.96% | 3.15% | ||
Measurement date | December 31, 2017 | December 31, 2016 |
Post-Employment Benefit Plan | ||||||||||
Year Ended December 31, | ||||||||||
2017 | 2016 | 2015 | ||||||||
Expected return on Assets | — | — | — | |||||||
Discount rate | 3.15 | % | 3.20 | % | 2.99 | % | ||||
Average compensation increase | N/A | N/A | N/A |
Consideration: | |||
Cash | $ | 1,551 | |
Contingent consideration arrangement (included in Other non-current liabilities on the Consolidated Balance Sheets) | 350 | ||
Fair value of total consideration transferred | $ | 1,901 | |
Recognized amounts of identifiable assets acquired: | |||
Inventory | $ | 51 | |
Total identifiable net assets assumed | $ | 51 | |
Goodwill and Brand name (indefinite lived) (included in Other assets on the Consolidated Balance Sheets) (Note 4) | 1,850 | ||
Total | $ | 1,901 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Non-cash investing and financing activities: | |||||||||||
Purchase of property, plant, and equipment in accounts payable | $ | 4,522 | $ | 4,364 | $ | 1,784 | |||||
Additional cash payment information: | |||||||||||
Interest paid | 1,489 | 1,467 | 818 | ||||||||
Income taxes paid | 13,526 | 16,409 | 9,393 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Current: | |||||||||||
Federal | $ | 14,020 | $ | 12,637 | $ | 8,954 | |||||
State | 379 | 342 | 1,003 | ||||||||
14,399 | 12,979 | 9,957 | |||||||||
Deferred: | |||||||||||
Federal | (3,764 | ) | (254 | ) | 3,174 | ||||||
State | 300 | 808 | (904 | ) | |||||||
(3,464 | ) | 554 | 2,270 | ||||||||
Total | $ | 10,935 | $ | 13,533 | $ | 12,227 |
December 31, | |||||||||
Description(a) | 2017 | 2016 | |||||||
Credit Agreement - Revolver, 2.935% (variable rate) due 2022 | $ | 3,298 | $ | 16,000 | (c) | ||||
Credit Agreement - Fixed Asset Sub-Line term loan (closed August 23, 2017 - see below) | — | 5,253 | (c) | ||||||
Credit Agreement - Term Loan (closed August 23, 2017 - see below) | — | 13,000 | (c) | ||||||
Secured Promissory Note, 3.71% (fixed rate) due 2022 | 1,966 | 2,324 | |||||||
Prudential Note Purchase Agreement, 3.53% (fixed rate) due 2027 | 20,000 | — | |||||||
Total indebtedness outstanding | 25,264 | 36,577 | |||||||
Less unamortized loan fees(b) | (710 | ) | (576 | ) | |||||
Total indebtedness outstanding, net | 24,554 | 36,001 | |||||||
Less current maturities of long-term debt | (372 | ) | (4,359 | ) | |||||
Long-term debt | $ | 24,182 | $ | 31,642 |
December 31, | |||||||
2017 | 2016 | ||||||
Deferred income tax assets: | |||||||
Post-retirement liability | $ | 910 | $ | 1,621 | |||
Deferred income | 543 | 1,176 | |||||
Share-based compensation | 1,158 | 1,313 | |||||
Capital loss carryforwards | — | 716 | |||||
State tax credit carryforwards | 3,488 | 3,204 | |||||
State operating loss carryforwards | 1,434 | 1,151 | |||||
Inventories | 1,346 | 2,560 | |||||
Other | 766 | 1,381 | |||||
Gross deferred income tax assets | $ | 9,645 | $ | 13,122 | |||
Less: valuation allowance | (148 | ) | (726 | ) | |||
Net deferred income tax assets | 9,497 | 12,396 | |||||
Deferred income tax liabilities: | |||||||
Fixed assets | (9,255 | ) | (14,313 | ) | |||
Equity method investments | — | (969 | ) | ||||
Other | (254 | ) | (546 | ) | |||
Gross deferred income tax liabilities | (9,509 | ) | (15,828 | ) | |||
Net deferred income tax liability | $ | (12 | ) | $ | (3,432 | ) |
Pension Benefit Plans(a) | Post-Employment Benefit Plan | ||||||||||||||
Year Ended December 31, | Year Ended December 31, | ||||||||||||||
2015 | 2017 | 2016 | 2015 | ||||||||||||
Net actuarial (loss) gain | $ | (35 | ) | $ | 261 | $ | 293 | $ | (35 | ) | |||||
Settlement losses | 414 | — | — | — | |||||||||||
Recognized net actuarial loss | 25 | 184 | 269 | 278 | |||||||||||
Amortization of prior service cost | — | (339 | ) | (338 | ) | (338 | ) | ||||||||
Total other comprehensive income (loss), pre-tax | 404 | 106 | 224 | (95 | ) | ||||||||||
Income tax expense (benefit) | 160 | 40 | 90 | (41 | ) | ||||||||||
Total other comprehensive income (loss), net of tax | $ | 244 | $ | 66 | $ | 134 | $ | (54 | ) |
Pension Benefit Plans(a) | Post-Employment Benefit Plan | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2015 | 2017 | 2016 | 2015 | |||||||||||||
Change in benefit obligation: | ||||||||||||||||
Beginning of year | $ | 2,016 | $ | 4,106 | $ | 4,681 | $ | 4,926 | ||||||||
Service cost | — | 25 | 36 | 51 | ||||||||||||
Interest cost | 36 | 122 | 142 | 141 | ||||||||||||
Actuarial loss (gain) | (9 | ) | (261 | ) | (297 | ) | 45 | |||||||||
Benefits paid | (2,043 | ) | (388 | ) | (456 | ) | (482 | ) | ||||||||
Benefit obligation at end of year | $ | — | $ | 3,604 | $ | 4,106 | $ | 4,681 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Operations: | |||||||||||
Net income(a) | $ | 41,823 | $ | 31,184 | $ | 26,191 | |||||
Less: Income attributable to participating securities (unvested shares and units) (b) | 996 | 954 | 873 | ||||||||
Net income attributable to common shareholders | $ | 40,827 | $ | 30,230 | $ | 25,318 | |||||
Share information: | |||||||||||
Basic and diluted weighted average common shares(c)(d) | 16,746,731 | 16,643,811 | 17,123,556 | ||||||||
Basic and diluted EPS(d) | $ | 2.44 | $ | 1.82 | $ | 1.48 |
(a) | Net income attributable to all shareholders. |
(b) | Participating securities included unvested restricted stock of 0, 0, and 128,500 for the years ended December 31, 2017, 2016, and 2015, as well as RSUs of 368,492, 527,486, and 437,946 for the years ended December 31, 2017, 2016, and 2015, respectively. |
(c) | Under the two class method, basic weighted average common shares exclude outstanding unvested participating securities. |
(d) | Basic and diluted weighted average common shares were affected by the September 1, 2015, purchase of 950,000 shares of common stock in a privately negotiated transaction with F2 SEA, Inc., an affiliate of SEACOR Holdings, Inc., pursuant to a Stock Repurchase Agreement. SEACOR Holdings, Inc. was the 70 percent owner of ICP, the Company's 30 percent equity method investment until it was sold on July 3, 2017 (Note 3). |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
\"Expected\" provision at federal statutory rate | $ | 18,465 | $ | 15,651 | $ | 13,446 | |||||
State income taxes, net | 1,612 | 1,672 | 1,714 | ||||||||
Change in valuation allowance | (578 | ) | (718 | ) | (2,385 | ) | |||||
Domestic production activity deduction | (957 | ) | (1,247 | ) | (1,002 | ) | |||||
Share-based compensation(a) | (4,254 | ) | (1,408 | ) | N/A | ||||||
Compensation limits | 931 | — | — | ||||||||
Federal and state tax credits | (1,058 | ) | (1,065 | ) | — | ||||||
Tax benefit from the Tax Act | (3,343 | ) | — | — | |||||||
Other | 117 | 648 | 454 | ||||||||
Income tax expense | $ | 10,935 | $ | 13,533 | $ | 12,227 | |||||
Effective tax rate | 20.7 | % | 30.3 | % | 31.8 | % |
(a) | The Company elected to early adopt ASU No. 2016-09, Compensation—Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting, in the quarter ended September 30, 2016 and, due to a required change in accounting principle, beginning that quarter, all excess tax benefits and deficiencies related to employee stock compensation are recognized within income tax expense in the Consolidated Statements of Income. The Company received federal tax benefits in 2017 and 2016 of $4,254 and $1,408, respectively, and state benefits of $371 and $163, respectively, for excess tax benefits |
Post-Employment Benefit Plan | ||||||||
Expected Benefit Payments | Expected Subsidy Receipts | |||||||
2018 | $ | 486 | $ | 15 | ||||
2019 | 491 | 13 | ||||||
2020 | 469 | 11 | ||||||
2021 | 443 | 11 | ||||||
2022 | 418 | 9 | ||||||
2023-2027 | 1,221 | 30 | ||||||
Total | $ | 3,528 | $ | 89 |
Post-Employment Benefit Plan | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2017 | 2016 | ||||||||||||||||
Group Plan | Lifetime Prescription Cost | Medicare Supplement | Group Plan | Lifetime Prescription Cost | Medicare Supplement | ||||||||||||
Health care cost trend rate | 7.00 | % | 9.00 | % | 4.50 | % | 7.50 | % | 9.00 | % | 5.00 | % | |||||
Ultimate trend rate | 5.00 | % | 5.00 | % | 4.50 | % | 5.00 | % | 5.00 | % | 5.00 | % | |||||
Year rate reaches ultimate trend rate | 2025 | 2027 | 2018 | 2023 | 2024 | 2017 |
December 31, | |||||||||
2017 | 2016 | ||||||||
Goodwill | $ | 1,500 | $ | 1,500 | |||||
Brand name (indefinite lived) | 350 | 350 | |||||||
Other intangible asset, net | 28 | — | |||||||
Balance as of December 31, 2017 | $ | 1,878 | $ | 1,850 |
December 31, | |||||||
2017 | 2016 | ||||||
Finished goods | $ | 13,284 | $ | 14,002 | |||
Barreled distillate (bourbons and whiskeys) | 65,726 | 50,941 | |||||
Raw materials | 3,954 | 4,274 | |||||
Work in process | 1,935 | 1,933 | |||||
Maintenance materials | 7,256 | 6,231 | |||||
Other | 994 | 1,477 | |||||
Total | $ | 93,149 | $ | 78,858 |
Post-Employment Benefit Plan | ||||
Actuarial net loss | $ | (92 | ) | |
Net prior service credits | 37 | |||
Net amount recognized | $ | (55 | ) |
Pension Benefit Plans(a) | Post-Employment Benefit Plan | |||||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||
2015 | 2017 | 2016 | 2015 | |||||||||||||
Service cost | $ | — | $ | 25 | $ | 36 | $ | 51 | ||||||||
Interest cost | 36 | 122 | 142 | 141 | ||||||||||||
Expected return on assets | (45 | ) | — | — | — | |||||||||||
Amortization of prior service cost | — | (339 | ) | (338 | ) | (338 | ) | |||||||||
Recognized net actuarial loss | 25 | 184 | 269 | 278 | ||||||||||||
Settlement losses | 414 | — | — | — | ||||||||||||
Net benefit cost (benefit) | $ | 430 | $ | (8 | ) | $ | 109 | $ | 132 |
Year Ended December 31, | |||||||||||||
2016 | 2015 | ||||||||||||
Shares | Weighted Average Grant-Date Fair Value | Shares | Weighted Average Grant-Date Fair Value | ||||||||||
Unvested balance at beginning of year | 128,500 | $ | 5.85 | 278,900 | $ | 6.28 | |||||||
Granted | — | — | 13,585 | 17.02 | |||||||||
Forfeited | — | — | (30,800 | ) | 6.27 | ||||||||
Vested | (128,500 | ) | 5.85 | (133,185 | ) | 7.80 | |||||||
Unvested balance at end of year | — | $ | — | 128,500 | $ | 5.85 |
Year Ended December 31, 2017 | |||||||||||||||
Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||||
Sales | $ | 91,043 | $ | 87,852 | $ | 87,892 | $ | 91,345 | |||||||
Less: excise tax | 2,850 | 1,519 | 2,139 | 4,176 | |||||||||||
Net sales | 88,193 | 86,333 | 85,753 | 87,169 | |||||||||||
Cost of sales | 68,668 | 67,708 | 66,928 | 68,128 | |||||||||||
Gross profit | 19,525 | 18,625 | 18,825 | 19,041 | |||||||||||
SG&A expenses | 8,993 | 8,154 | 8,311 | 7,649 | |||||||||||
Operating income | 10,532 | 10,471 | 10,514 | 11,392 | |||||||||||
Gain on sale of equity method investment (Note 3)(a) | — | 11,381 | — | — | |||||||||||
Equity method investment earnings (loss) (Note 3) | — | — | (819 | ) | 471 | ||||||||||
Interest expense, net | (250 | ) | (224 | ) | (379 | ) | (331 | ) | |||||||
Income before income taxes | 10,282 | 21,628 | 9,316 | 11,532 | |||||||||||
Income tax expense (benefit) (Note 6)(b) | (2,357 | ) | 7,491 | 2,947 | 2,854 | ||||||||||
Net income | $ | 12,639 | $ | 14,137 | $ | 6,369 | $ | 8,678 | |||||||
Basic and diluted EPS data | $ | 0.74 | $ | 0.82 | $ | 0.37 | $ | 0.50 | |||||||
Dividends and dividend equivalents per common share and per unit | $ | 0.04 | $ | 0.89 | $ | 0.04 | $ | 0.04 |
(a) | Net income was positively impacted during the third quarter of 2017 by a gain on sale of equity method investment of $11,381 related to the sale of the Company's 30 percent interest in ICP to Pacific Ethanol on July 3, 2017 (Note 3). |
(b) | Net income was positively impacted during the fourth quarter of 2017 by a provisional income tax benefit of $3,343 related to the Tax Act enacted on December 22, 2017 (Note 6). |
(c) | Quarterly EPS amounts may not add to amounts for the year because quarterly and annual EPS calculations are performed separately. |
Year Ended December 31, 2016(a) (b) | |||||||||||||||
Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||||
Sales | $ | 85,005 | $ | 83,711 | $ | 82,174 | $ | 77,191 | |||||||
Less: excise tax | 3,860 | 3,820 | 1,782 | 356 | |||||||||||
Net sales | 81,145 | 79,891 | 80,392 | 76,835 | |||||||||||
Cost of sales | 63,560 | 64,770 | 64,861 | 59,789 | |||||||||||
Gross profit | 17,585 | 15,121 | 15,531 | 17,046 | |||||||||||
SG&A | 6,987 | 6,981 | 6,404 | 6,321 | |||||||||||
Other operating income, net | — | (3,385 | ) | — | — | ||||||||||
Operating income | 10,598 | 11,525 | 9,127 | 10,725 | |||||||||||
Equity method investment earnings (Note 3) | 1,776 | 664 | 1,079 | 517 | |||||||||||
Interest expense | (314 | ) | (341 | ) | (328 | ) | (311 | ) | |||||||
Income before income taxes | 12,060 | 11,848 | 9,878 | 10,931 | |||||||||||
Income tax expense (Note 6) | 3,775 | 2,316 | 3,570 | 3,872 | |||||||||||
Net income | $ | 8,285 | $ | 9,532 | $ | 6,308 | $ | 7,059 | |||||||
Basic and diluted EPS data | $ | 0.48 | $ | 0.55 | $ | 0.37 | $ | 0.41 | |||||||
Dividends and dividend equivalents per common share and per unit | $ | 0.02 | $ | 0.02 | $ | — | $ | 0.08 |
(a) | Net income was positively impacted during the third quarter of 2016 by other operating income, net, of $3,385 related to a legal settlement agreement and a gain on sale of long-lived assets and by a lower effective income tax rate related to the implementation of ASU No. 2016-09, Compensation—Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting. |
(b) | Quarterly EPS amounts may not add to amounts for the year because quarterly and annual EPS calculations are performed separately. |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Net sales to customers: | |||||||||||
Distillery products | $ | 291,008 | $ | 265,243 | $ | 270,225 | |||||
Ingredient solutions | 56,440 | 53,020 | 57,379 | ||||||||
Total(a) | $ | 347,448 | $ | 318,263 | $ | 327,604 | |||||
Gross profit: | |||||||||||
Distillery products | $ | 66,817 | $ | 56,836 | $ | 50,662 | |||||
Ingredient solutions | 9,199 | 8,447 | 7,871 | ||||||||
Total | $ | 76,016 | $ | 65,283 | $ | 58,533 | |||||
Depreciation and amortization: | |||||||||||
Distillery products | $ | 8,490 | $ | 8,371 | $ | 8,900 | |||||
Ingredient solutions | 1,660 | 1,655 | 2,111 | ||||||||
Corporate | 1,158 | 1,227 | 1,371 | ||||||||
Total | $ | 11,308 | $ | 11,253 | $ | 12,382 | |||||
Income (loss) before income taxes: | |||||||||||
Distillery products | $ | 60,424 | $ | 53,583 | $ | 49,097 | |||||
Ingredient solutions | 6,613 | 5,836 | 5,636 | ||||||||
Corporate | (14,279 | ) | (14,702 | ) | (16,315 | ) | |||||
Total | $ | 52,758 | $ | 44,717 | $ | 38,418 |
(a) | Net sales revenue from foreign sources totaled $22,870, $22,422, and $18,772 for 2017, 2016, and 2015, respectively, and is largely derived from Japan, Thailand, and Canada. The balance of total net sales revenue is from domestic sources. |
Year Ended December 31, | |||||||||||||||||||||
2017 | 2016 | 2015 | |||||||||||||||||||
Units | Weighted Average Grant-Date Fair Value | Units | Weighted Average Grant-Date Fair Value | Units | Weighted Average Grant-Date Fair Value | ||||||||||||||||
Unvested balance at beginning of year | 527,486 | $ | 10.17 | 437,946 | $ | 7.09 | 413,288 | $ | 5.09 | ||||||||||||
Granted | 47,514 | 42.93 | 100,892 | 23.15 | 89,702 | 16.63 | |||||||||||||||
Forfeited | (3,508 | ) | 25.74 | (11,352 | ) | 11.55 | (54,506 | ) | 6.15 | ||||||||||||
Vested | (203,000 | ) | 4.82 | — | — | (10,538 | ) | 14.88 | |||||||||||||
Unvested balance at end of year | 368,492 | $ | 17.20 | 527,486 | $ | 10.17 | 437,946 | $ | 7.09 |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Beginning of year balance | $ | 43 | $ | 613 | $ | 613 | |||||
Additions for tax positions of prior years | 130 | 2 | — | ||||||||
Additions for tax positions of the current year | 12 | 21 | — | ||||||||
Reduction for prior year tax positions | — | (48 | ) | — | |||||||
Reductions for settlements | — | (545 | ) | — | |||||||
End of year balance | $ | 185 | $ | 43 | $ | 613 |
NOTE 11: | OPERATING SEGMENTS |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Net sales to customers: | |||||||||||
Distillery products | $ | 291,008 | $ | 265,243 | $ | 270,225 | |||||
Ingredient solutions | 56,440 | 53,020 | 57,379 | ||||||||
Total(a) | $ | 347,448 | $ | 318,263 | $ | 327,604 | |||||
Gross profit: | |||||||||||
Distillery products | $ | 66,817 | $ | 56,836 | $ | 50,662 | |||||
Ingredient solutions | 9,199 | 8,447 | 7,871 | ||||||||
Total | $ | 76,016 | $ | 65,283 | $ | 58,533 | |||||
Depreciation and amortization: | |||||||||||
Distillery products | $ | 8,490 | $ | 8,371 | $ | 8,900 | |||||
Ingredient solutions | 1,660 | 1,655 | 2,111 | ||||||||
Corporate | 1,158 | 1,227 | 1,371 | ||||||||
Total | $ | 11,308 | $ | 11,253 | $ | 12,382 | |||||
Income (loss) before income taxes: | |||||||||||
Distillery products | $ | 60,424 | $ | 53,583 | $ | 49,097 | |||||
Ingredient solutions | 6,613 | 5,836 | 5,636 | ||||||||
Corporate | (14,279 | ) | (14,702 | ) | (16,315 | ) | |||||
Total | $ | 52,758 | $ | 44,717 | $ | 38,418 |
(a) | Net sales revenue from foreign sources totaled $22,870, $22,422, and $18,772 for 2017, 2016, and 2015, respectively, and is largely derived from Japan, Thailand, and Canada. The balance of total net sales revenue is from domestic sources. |
December 31, | |||||||
2017 | 2016 | ||||||
Identifiable Assets | |||||||
Distillery products | $ | 191,321 | $ | 161,059 | |||
Ingredient solutions | 28,950 | 27,109 | |||||
Corporate | 20,057 | (a) | 37,168 | ||||
Total(b) | $ | 240,328 | $ | 225,336 |
(a) | Reflects the 2017 sale of ICP, the Company's equity method investment (Note 3). |
(b) | The Company has no assets located in foreign countries. |
NOTE 7: | EQUITY AND EPS |
Year Ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Operations: | |||||||||||
Net income(a) | $ | 41,823 | $ | 31,184 | $ | 26,191 | |||||
Less: Income attributable to participating securities (unvested shares and units) (b) | 996 | 954 | 873 | ||||||||
Net income attributable to common shareholders | $ | 40,827 | $ | 30,230 | $ | 25,318 | |||||
Share information: | |||||||||||
Basic and diluted weighted average common shares(c)(d) | 16,746,731 | 16,643,811 | 17,123,556 | ||||||||
Basic and diluted EPS(d) | $ | 2.44 | $ | 1.82 | $ | 1.48 |
(a) | Net income attributable to all shareholders. |
(b) | Participating securities included unvested restricted stock of 0, 0, and 128,500 for the years ended December 31, 2017, 2016, and 2015, as well as RSUs of 368,492, 527,486, and 437,946 for the years ended December 31, 2017, 2016, and 2015, respectively. |
(c) | Under the two class method, basic weighted average common shares exclude outstanding unvested participating securities. |
(d) | Basic and diluted weighted average common shares were affected by the September 1, 2015, purchase of 950,000 shares of common stock in a privately negotiated transaction with F2 SEA, Inc., an affiliate of SEACOR Holdings, Inc., pursuant to a Stock Repurchase Agreement. SEACOR Holdings, Inc. was the 70 percent owner of ICP, the Company's 30 percent equity method investment until it was sold on July 3, 2017 (Note 3). |
Pension Plan Items | (a) | Post-Employment Benefit Plan Items | Other | Total | ||||||||||||
Balance, December 31, 2014 | $ | (244 | ) | $ | (456 | ) | $ | (32 | ) | $ | (732 | ) | ||||
Other comprehensive income (loss) before reclassifications | (355 | ) | 47 | (10 | ) | (318 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income | 599 | (101 | ) | 52 | 550 | |||||||||||
Net 2015 other comprehensive income (loss) | 244 | (54 | ) | 42 | 232 | |||||||||||
Balance, December 31, 2015 | $ | — | $ | (510 | ) | $ | 10 | $ | (500 | ) | ||||||
Other comprehensive income (loss) before reclassifications | — | 113 | (14 | ) | 99 | |||||||||||
Amounts reclassified from accumulated other comprehensive income | — | 21 | 7 | 28 | ||||||||||||
Net 2016 other comprehensive income (loss) | — | 134 | (7 | ) | 127 | |||||||||||
Balance, December 31, 2016 | $ | — | $ | (376 | ) | $ | 3 | $ | (373 | ) | ||||||
Other comprehensive income (loss) before reclassifications | — | 181 | (8 | ) | 173 | |||||||||||
Amounts reclassified from accumulated other comprehensive income | — | (115 | ) | 4 | (111 | ) | ||||||||||
Net 2017 other comprehensive income (loss) | — | 66 | (4 | ) | 62 | |||||||||||
Balance, December 31, 2017 | $ | — | $ | (310 | ) | $ | (1 | ) | $ | (311 | ) |
(a) | The Company's pension benefit plans were terminated in June 2015. |
Details about Accumulated Other Comprehensive Income Components | Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Post Employment Benefit Items: | ||||||
Amortization of prior service cost | $ | (339 | ) | (a) | ||
Recognized net actuarial loss | 184 | (a) | ||||
(155 | ) | |||||
40 | Tax expense | |||||
$ | (115 | ) | Net of tax | |||
Equity Method Investment Adjustment: | ||||||
Accumulated postretirement benefit obligation | $ | 7 | ||||
(3 | ) | Tax benefit | ||||
$ | 4 | Net of tax | ||||
Reclassifications for 2017 | $ | (111 | ) | Total net of tax |
(a) | These accumulated other comprehensive income components are included in the computation of net period post-employment benefit cost (Note 9). |
NOTE 17: | SUBSEQUENT EVENTS |
Valuation allowance | ||||
Balance at December 31, 2015 | $ | 1,444 | ||
Reductions | 718 | |||
Balance at December 31, 2016 | $ | 726 | ||
Reductions | 578 | |||
Balance at December 31, 2017 | $ | 148 |
NOTE 2: | OTHER BALANCE SHEET CAPTIONS |
December 31, | |||||||
2017 | 2016 | ||||||
Finished goods | $ | 13,284 | $ | 14,002 | |||
Barreled distillate (bourbons and whiskeys) | 65,726 | 50,941 | |||||
Raw materials | 3,954 | 4,274 | |||||
Work in process | 1,935 | 1,933 | |||||
Maintenance materials | 7,256 | 6,231 | |||||
Other | 994 | 1,477 | |||||
Total | $ | 93,149 | $ | 78,858 |
December 31, | |||||||
2017 | 2016 | ||||||
Land, buildings, and improvements | $ | 72,223 | $ | 67,487 | |||
Transportation equipment | 3,286 | 3,253 | |||||
Machinery and equipment | 175,371 | 164,871 | |||||
Construction in progress | 16,408 | 10,608 | |||||
Property, plant, and equipment, at cost | 267,288 | 246,219 | |||||
Less accumulated depreciation and amortization | (164,237 | ) | (153,428 | ) | |||
Property, plant, and equipment, net | $ | 103,051 | $ | 92,791 |
December 31, | |||||||
2017 | 2016 | ||||||
Employee benefit plans | $ | 962 | $ | 820 | |||
Salaries and wages | 7,452 | 5,641 | |||||
Property taxes | 1,185 | 824 | |||||
Other | 1,572 | 1,660 | |||||
Total | $ | 11,171 | $ | 8,945 |