| Segment Reporting Disclosure [Text Block] |
NOTE 20. INDUSTRY SEGMENT AND GEOGRAPHIC INFORMATION
Segment Information
The Company reports in two segments, animal nutrition and human nutrition. These segments are managed separately and information on each segment is provided to the chief operating decision makers as they make decisions about the Company’s overall resource allocation and assess performance.
The animal nutrition segment is primarily comprised of the Company’s fishing related assets. These assets produce fish meal, oil and solubles that are sold primarily to animal nutrition customers. A portion of the Company’s fish oil is also partially refined and transferred at cost to the human nutrition segment where it is further refined and concentrated for sale to the human nutrition market. The human nutrition segment is comprised of assets used to produce, procure, market and sell product to human nutrition markets.
The tables below present information about reported segments for 2013, 2012 and 2011 (in thousands).
|
2013
|
|
Animal Nutrition
|
|
|
Human Nutrition(1)
|
|
|
Unallocated
|
|
|
Total
|
|
|
Revenue (2)
|
|
$
|
213,236
|
|
|
$
|
31,057
|
|
|
$
|
—
|
|
|
$
|
244,293
|
|
|
Cost of sales
|
|
|
136,146
|
|
|
|
25,397
|
|
|
|
—
|
|
|
|
161,543
|
|
|
Gross profit
|
|
|
77,090
|
|
|
|
5,660
|
|
|
|
—
|
|
|
|
82,750
|
|
|
Selling, general and administrative expenses including research and development)
|
|
|
2,744
|
|
|
|
6,959
|
|
|
|
17,997
|
|
|
|
27,700
|
|
|
Loss related to plant closure
|
|
|
6,597
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6,597
|
|
|
Other (gains) and losses
|
|
|
140
|
|
|
|
305
|
|
|
|
(5
|
)
|
|
|
440
|
|
|
Operating income
|
|
$
|
67,609
|
|
|
$
|
(1,604
|
)
|
|
$
|
(17,992
|
)
|
|
$
|
48,013
|
|
|
Depreciation and amortization
|
|
$
|
17,946
|
|
|
$
|
2,369
|
|
|
$
|
741
|
|
|
$
|
21,056
|
|
|
Identifiable assets
|
|
$
|
277,063
|
|
|
$
|
53,093
|
|
|
$
|
1,238
|
|
|
$
|
331,394
|
|
|
Capital expenditures
|
|
$
|
19,080
|
|
|
$
|
5,350
|
|
|
$
|
366
|
|
|
$
|
24,796
|
|
|
|
(1)
|
Includes revenues and related expenses for WSP from February 27, 2013 through December 31, 2013.
|
|
|
|
|
|
|
(2)
|
Excludes revenue from internal customers of $1.3 million for fish oil that was transferred from the animal nutrition segment to the human nutrition segment at cost.
|
|
2012
|
|
Animal Nutrition
|
|
|
Human Nutrition
|
|
|
Unallocated
|
|
|
Total
|
|
|
Revenue (3)
|
|
$
|
213,624
|
|
|
$
|
22,015
|
|
|
$
|
—
|
|
|
$
|
235,639
|
|
|
Cost of sales
|
|
|
176,588
|
|
|
|
16,995
|
|
|
|
—
|
|
|
|
193,583
|
|
|
Gross profit
|
|
|
37,036
|
|
|
|
5,020
|
|
|
|
—
|
|
|
|
42,056
|
|
|
Selling, general and administrative expenses (including research and development)
|
|
|
2,564
|
|
|
|
3,795
|
|
|
|
17,587
|
|
|
|
23,946
|
|
|
Charges related to U.S. Attorney investigation
|
|
|
7,990
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7,990
|
|
|
Other (gains) and losses
|
|
|
(2,635
|
)
|
|
|
129
|
|
|
|
—
|
|
|
|
(2,506
|
)
|
|
Operating income
|
|
$
|
29,117
|
|
|
$
|
1,096
|
|
|
$
|
(17,587
|
)
|
|
$
|
12,626
|
|
|
Depreciation and amortization
|
|
$
|
15,859
|
|
|
$
|
1,315
|
|
|
$
|
825
|
|
|
$
|
17,999
|
|
|
Identifiable assets
|
|
$
|
266,307
|
|
|
$
|
27,109
|
|
|
$
|
1,880
|
|
|
$
|
295,296
|
|
|
Capital expenditures
|
|
$
|
22,810
|
|
|
$
|
1,759
|
|
|
$
|
495
|
|
|
$
|
25,064
|
|
|
|
(3)
|
Excludes revenue from internal customers of $1.6 million for fish oil that was transferred from the animal nutrition segment to the human nutrition segment at cost.
|
|
2011
|
|
Animal Nutrition
|
|
|
Human Nutrition
|
|
|
Unallocated
|
|
|
Total
|
|
|
Revenue (4)
|
|
$
|
236,489
|
|
|
$
|
15,254
|
|
|
$
|
—
|
|
|
$
|
251,743
|
|
|
Cost of sales
|
|
|
187,092
|
|
|
|
9,977
|
|
|
|
—
|
|
|
|
197,069
|
|
|
Gross profit
|
|
|
49,397
|
|
|
|
5,277
|
|
|
|
—
|
|
|
|
54,674
|
|
|
Selling, general and administrative expenses (including research and development)
|
|
|
2,804
|
|
|
|
3,286
|
|
|
|
18,548
|
|
|
|
24,638
|
|
|
Charges related to U.S. Attorney investigation
|
|
|
545
|
|
|
|
—
|
|
|
|
—
|
|
|
|
545
|
|
|
Other (gains) and losses
|
|
|
(24,869
|
)
|
|
|
1
|
|
|
|
—
|
|
|
|
(24,868
|
)
|
|
Operating income
|
|
$
|
70,917
|
|
|
$
|
1,990
|
|
|
$
|
(18,548
|
)
|
|
$
|
54,359
|
|
|
Depreciation and amortization
|
|
$
|
15,098
|
|
|
$
|
648
|
|
|
$
|
684
|
|
|
$
|
16,430
|
|
|
Identifiable assets
|
|
$
|
248,672
|
|
|
$
|
27,048
|
|
|
$
|
2,110
|
|
|
$
|
277,830
|
|
|
Capital expenditures
|
|
$
|
22,542
|
|
|
$
|
566
|
|
|
$
|
244
|
|
|
$
|
23,352
|
|
|
|
(4)
|
Excludes revenue from internal customers of $0.4 million for fish oil that was transferred from the animal nutrition segment to the human nutrition segment at cost.
|
A reconciliation of total segment operating income to total earnings from operations before income taxes for the years ended December 31, 2013, 2012, and 2011 is as follows (in thousands):
|
|
|
Year ended December 31,
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|
Operating income for reportable segments
|
|
$
|
48,013
|
|
|
$
|
12,626
|
|
|
$
|
54,359
|
|
|
Interest income
|
|
|
18
|
|
|
|
32
|
|
|
|
43
|
|
|
Interest expense
|
|
|
(1,658
|
)
|
|
|
(1,335
|
)
|
|
|
(2,109
|
)
|
|
Other expense, net
|
|
|
(394
|
)
|
|
|
(365
|
)
|
|
|
(408
|
)
|
|
Income before income taxes
|
|
$
|
45,979
|
|
|
$
|
10,958
|
|
|
$
|
51,885
|
|
Geographical and Other Information
The Company’s export sales were approximately $120 million, $142 million, and $165 million in 2013, 2012, and 2011, respectively. Such sales were made primarily to Asian, European and Canadian markets. In 2013, 2012 and 2011, sales to the Company’s top customer were approximately $22.7 million, $43.5 million and $38.6 million, respectively. The top customer was Nestle Purina Pet Care for 2013, Hong Kong Ruiboer for 2012 and Pacific Tide Limited for 2011. In addition, in 2011 a second customer, Hong Kong Ruiboer, also accounted for approximately $36.8 million of revenue.
The following table shows the geographical distribution of revenues (in millions) based on location of customers:
|
|
|
Years Ended December 31,
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|
|
|
Revenues
|
|
|
Percent
|
|
|
Revenues
|
|
|
Percent
|
|
|
Revenues
|
|
|
Percent
|
|
|
U.S.
|
|
$
|
123.9
|
|
|
|
50.7
|
%
|
|
$
|
93.8
|
|
|
|
39.8
|
%
|
|
$
|
86.6
|
|
|
|
34.4
|
%
|
|
Mexico
|
|
|
1.3
|
|
|
|
0.5
|
|
|
|
0.9
|
|
|
|
0.4
|
|
|
|
0.9
|
|
|
|
0.3
|
|
|
Europe
|
|
|
31.5
|
|
|
|
12.9
|
|
|
|
18.6
|
|
|
|
7.9
|
|
|
|
30.3
|
|
|
|
12.1
|
|
|
Canada
|
|
|
11.6
|
|
|
|
4.8
|
|
|
|
13.2
|
|
|
|
5.6
|
|
|
|
15.4
|
|
|
|
6.1
|
|
|
Asia (1)
|
|
|
70.9
|
|
|
|
29.0
|
|
|
|
104.2
|
|
|
|
44.2
|
|
|
|
114.3
|
|
|
|
45.4
|
|
|
South & Central America
|
|
|
4.8
|
|
|
|
2.0
|
|
|
|
4.7
|
|
|
|
2.0
|
|
|
|
4.0
|
|
|
|
1.6
|
|
|
Other
|
|
|
0.3
|
|
|
|
0.1
|
|
|
|
0.2
|
|
|
|
0.1
|
|
|
|
0.2
|
|
|
|
0.1
|
|
|
Total
|
|
$
|
244.3
|
|
|
|
100.0
|
%
|
|
$
|
235.6
|
|
|
|
100.0
|
%
|
|
$
|
251.7
|
|
|
|
100.0
|
%
|
(1) Of this balance, China comprised approximately $47.4 million, $89.5 million and $102.6 million for the years ended December 31, 2013, 2012 and 2011, respectively.
The following table sets forth the Company’s revenues by product (in millions) and the approximate percentage of total revenues represented thereby, for the indicated periods:
|
|
|
Years Ended December 31,
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|
|
|
Revenues
|
|
|
Percent
|
|
|
Revenues
|
|
|
Percent
|
|
|
Revenues
|
|
|
Percent
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fish Meal
|
|
$
|
142.5
|
|
|
|
58.3
|
%
|
|
$
|
160.7
|
|
|
|
68.2
|
%
|
|
$
|
175.5
|
|
|
|
69.8
|
%
|
|
Fish Oil
|
|
|
43.8
|
|
|
|
18.0
|
|
|
|
27.6
|
|
|
|
11.7
|
|
|
|
39.6
|
|
|
|
15.7
|
|
|
Refined Fish Oil
|
|
|
22.7
|
|
|
|
9.3
|
|
|
|
17.8
|
|
|
|
7.6
|
|
|
|
15.6
|
|
|
|
6.2
|
|
|
Fish Solubles and Other
|
|
|
4.2
|
|
|
|
1.7
|
|
|
|
7.5
|
|
|
|
3.2
|
|
|
|
5.8
|
|
|
|
2.3
|
|
|
Dietary Supplement and Food Ingredients and Products
|
|
|
31.1
|
|
|
|
12.7
|
|
|
|
22.0
|
|
|
|
9.3
|
|
|
|
15.2
|
|
|
|
6.0
|
|
|
Total
|
|
$
|
244.3
|
|
|
|
100.0
|
%
|
|
$
|
235.6
|
|
|
|
100.0
|
%
|
|
$
|
251.7
|
|
|
|
100.0
|
%
|
|