Document And Entity Information
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Document And Entity Information (USD $)
 12 Months Ended
Dec. 31, 2012
Mar. 01, 2013
Jul. 01, 2012
Document And Entity Information [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Dec. 31, 2012    
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2012    
Entity Registrant Name NATIONAL PRESTO INDUSTRIES INC    
Entity Central Index Key 0000080172    
Current Fiscal Year End Date --12-31    
Entity Filer Category Accelerated Filer    
Entity Common Stock, Shares Outstanding   6,894,158  
Entity Current Reporting Status Yes    
Entity Public Float     $ 335,654,958
Entity Voluntary Filers No    
Entity Well-known Seasoned Issuer No    

Condensed Consolidated Balance Sheets
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Condensed Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
CURRENT ASSETS:    
Cash and cash equivalents $ 37,437 $ 73,995
Marketable securities 55,586 59,360
Accounts receivable 82,554 74,995
Less allowance for doubtful accounts 6,111 1,361
Accounts receivable, net 76,443 73,634
Inventories:    
Finished goods 33,851 32,759
Work in process 40,340 50,462
Raw materials 9,173 11,285
Total inventory 83,364 94,506
Deferred tax assets 8,906 6,140
Other current assets 9,018 21,270
Total current assets 270,754 328,905
PROPERTY, PLANT AND EQUIPMENT:    
Land and land improvements 2,010 1,955
Buildings 30,708 29,348
Machinery and equipment 90,700 90,305
PROPERTY, PLANT AND EQUIPMENT 123,418 121,608
Less allowance for depreciation and amortization 61,553 57,340
PROPERTY, PLANT AND EQUIPMENT, NET 61,865 64,268
GOODWILL & OTHER INTANGIBLES 17,722 18,468
NOTE RECEIVABLE 3,571  
Total assets 353,912 411,641
CURRENT LIABILITIES:    
Accounts payable 39,077 48,344
Federal and state income taxes 1,642 1,567
Accrued liabilities 15,254 16,035
Total current liabilities 55,973 65,946
DEFERRED INCOME TAXES 7,368 9,405
COMMITMENTS AND CONTINGENCIES      
STOCKHOLDERS' EQUITY    
Common stock, $1 par value: Authorized: 12,000,000 shares at December 31, 2012 and 2011; Issued: 7,440,518 shares at December 31, 2012 and 2011; Outstanding: 6,894,158 and 6,875,001 shares at December 31, 2012 and 2011, respectively 7,441 7,441
Paid-in capital 4,472 3,539
Retained earnings 295,643 342,873
Accumulated other comprehensive income 53 72
Stockholders' Equity before Treasury Stock 307,609 353,925
Less treasury stock, at cost, 546,360 and 565,517 shares at December 31, 2012 and 2011, respectively 17,038 17,635
Total stockholders' equity 290,571 336,290
Total liabilities and stockholders' equity $ 353,912 $ 411,641

Condensed Consolidated Balance Sheets (Parenthetical)
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Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
Dec. 31, 2012
Dec. 31, 2011
Consolidated Balance Sheets [Abstract]    
Common stock, par value $ 1 $ 1
Common stock, shares authorized 12,000,000 12,000,000
Common stock, shares issued 7,440,518 7,440,518
Common stock, shares outstanding 6,894,158 6,875,001
Treasury stock, at cost 546,360 565,517

Consolidated Statements Of Comprehensive Income
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Consolidated Statements Of Comprehensive Income (USD $)
In Thousands, except Per Share data, unless otherwise specified
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Consolidated Statements Of Comprehensive Income [Abstract]      
Net sales $ 472,490 $ 431,021 $ 479,000
Cost of sales 377,627 337,262 365,426
Gross profit 94,863 93,759 113,574
Selling and general expenses 35,144 20,022 16,323
Operating profit 59,719 73,737 97,251
Other income, principally interest 705 1,288 2,104
Earnings before provision for income taxes 60,424 75,025 99,355
Provision for income taxes 21,549 27,057 35,824
Net earnings 38,875 47,968 63,531
Weighted average common shares outstanding:      
Basic 6,889 6,875 6,864
Diluted 6,891 6,876 6,864
Net earnings per share:      
Basic $ 5.64 $ 6.98 $ 9.26
Diluted $ 5.64 $ 6.98 $ 9.26
Other comprehensive income (loss), net of tax:      
Unrealized loss on available-for-sale securities, net of tax (19) (57) (514)
Comprehensive income $ 38,856 $ 47,911 $ 63,017

Consolidated Statements Of Cash Flows
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Consolidated Statements Of Cash Flows (USD $)
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Cash flows from operating activities:      
Net earnings $ 38,875,000 $ 47,968,000 $ 63,531,000
Adjustments to reconcile net earnings to net cash provided by operating activities:      
Provision for depreciation 10,136,000 9,037,000 8,637,000
Loss (gain) on disposal and impairment of property, plant and equipment 5,843,000 10,000 (1,290,000)
Provision for doubtful accounts 5,629,000 1,037,000 50,000
Deferred income taxes (4,792,000) 5,096,000 (399,000)
Intangibles amortization 1,049,000 0 0
Other 568,000 618,000 500,000
Changes in operating accounts:      
Accounts receivable, net (6,546,000) 16,936,000 1,194,000
Inventories 11,091,000 (10,284,000) (14,557,000)
Other current assets 10,360,000 (6,729,000) (5,604,000)
Accounts payable and accrued liabilities (9,999,000) (711,000) 6,138,000
Federal and state income taxes payable 128,000 (4,292,000) (432,000)
Net cash provided by operating activities 62,342,000 58,686,000 57,768,000
Cash flows from investing activities:      
Marketable securities purchased (26,023,000) (40,962,000) (45,464,000)
Marketable securities - maturities and sales 29,767,000 82,521,000 62,109,000
Acquisition of property, plant and equipment (13,584,000) (15,003,000) (17,972,000)
Notes issued (3,500,000) (220,000) (1,580,000)
Sale of property, plant and equipment 8,000 6,000 1,365,000
Acquisition of businesses, net of cash acquired (246,000) (4,526,000)  
Net cash provided by (used in) investing activities (13,578,000) 21,816,000 (1,542,000)
Cash flows from financing activities:      
Dividends paid (86,106,000) (56,665,000) (55,889,000)
Other 784,000 439,000 408,000
Net cash used in financing activities (85,322,000) (56,226,000) (55,481,000)
Net increase (decrease) in cash and cash equivalents (36,558,000) 24,276,000 745,000
Cash and cash equivalents at beginning of period 73,995,000 49,719,000 48,974,000
Cash and cash equivalents at end of period 37,437,000 73,995,000 49,719,000
Supplemental disclosures of cash flow information:      
Income taxes $ 26,532,000 $ 26,686,000 $ 36,479,000

Consolidated Statements Of Stockholders' Equity
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Consolidated Statements Of Stockholders' Equity (USD $)
In Thousands, except Share data
Common Stock [Member]
Paid-in Capital [Member]
Retained Earnings [Member]
Quarter 1 Dividend Payment [Member]
Retained Earnings [Member]
Quarter 4 Dividend Payment [Member]
Retained Earnings [Member]
Accumulated Comprehensive Income (Loss) [Member]
Treasury Stock [Member]
Quarter 1 Dividend Payment [Member]
Quarter 4 Dividend Payment [Member]
Total
Balance at Dec. 31, 2009 $ 7,441 $ 2,037     $ 343,930 $ 643 $ (18,179)     $ 335,872
Balance, shares at Dec. 31, 2009 6,858                  
Net earnings         63,531         63,531
Unrealized loss on available-for-sale securities, net of tax           (514)       (514)
Dividends paid         (55,889)         (55,889)
Other   701     (1)   237     937
Other, shares 7                  
Balance at Dec. 31, 2010 7,441 2,738     351,571 129 (17,942)     343,937
Balance, shares at Dec. 31, 2010 6,865                  
Net earnings         47,968         47,968
Unrealized loss on available-for-sale securities, net of tax           (57)       (57)
Dividends paid         (56,665)         (56,665)
Other   801     (1)   307     1,107
Other, shares 10                  
Balance at Dec. 31, 2011 7,441 3,539     342,873 72 (17,635)     336,290
Balance, shares at Dec. 31, 2011 6,875                  
Net earnings         38,875         38,875
Unrealized loss on available-for-sale securities, net of tax           (19)       (19)
Dividends paid     (41,292) (44,814)       (41,292) (44,814)  
Other   933     1   597     1,531
Other, shares 19                  
Balance at Dec. 31, 2012 $ 7,441 $ 4,472     $ 295,643 $ 53 $ (17,038)     $ 290,571
Balance, shares at Dec. 31, 2012 6,894                  

Consolidated Statements Of Stockholders' Equity (Parenthetical)
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Consolidated Statements Of Stockholders' Equity (Parenthetical) (USD $)
 12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2012
Quarter 1 Dividend Payment [Member]
Dec. 31, 2012
Quarter 4 Dividend Payment [Member]
Regular dividends per share paid $ 1.00 $ 1.00 $ 1.00 $ 1.00
Extra dividends per share paid $ 7.25 $ 7.15 $ 5.00 $ 5.50

Summary Of Significant Accounting Policies
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Summary Of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2012
Summary Of Significant Accounting Policies [Abstract]  
Summary Of Significant Accounting Policies

A.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

 

(1)  USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS:  In preparation of the Company's Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and related revenues and expenses.   Actual results could differ from the estimates used by management.

 

(2)  BASIS OF PRESENTATION:  The Consolidated Financial Statements include the accounts of National Presto Industries, Inc. and its subsidiaries, all of which are wholly-owned.  All material intercompany accounts and transactions are eliminated.  For a further discussion of the Company's business and the segments in which it operates, please refer to Note L.

 

(3)  RECLASSIFICATIONS:  Certain reclassifications have been made to the prior periods’ financial statements to conform to the current period’s financial statement presentation.  These reclassifications did not affect net earnings or stockholders’ equity as previously reported.

 

(4)  FAIR VALUE OF FINANCIAL INSTRUMENTS:  The Company utilizes the methods of determining fair value as described in Financial Accounting Standard Board (“FASB”) Accounting Standard Codification (“ASC”) 820, Fair Value Measurements and Disclosures to value its financial assets and liabilities. ASC 820 utilizes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

 

The carrying amount for cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximates fair value due to the immediate or short-term maturity of these financial instruments. 

 

(5)  CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES: 

 

Cash and Cash Equivalents:  The Company considers all highly liquid marketable securities with an original maturity of three months or less to be cash equivalents.  Cash equivalents include money market funds.  The Company deposits its cash in high quality financial institutions. The balances, at times, may exceed federally insured limits.  Money market funds are reported at fair value determined using quoted prices in active markets for identical securities (Level 1, as defined by FASB ASC 820).

 

The Company's cash management policy provides for its bank disbursement accounts to be reimbursed on a daily basis.  Checks issued but not presented to the bank for payment of $4,091,000 and $5,313,000 at December 31, 2012 and 2011, respectively, are included as reductions of cash and cash equivalents or bank overdrafts in accounts payable, as appropriate.

 

Marketable Securities:  The Company has classified all marketable securities as available-for-sale which requires the securities to be reported at fair value, with unrealized gains and losses, net of tax, reported as a separate component of stockholders' equity.  Highly liquid, tax exempt variable rate demand notes with put options exercisable in three months or less are classified as marketable securities.

 

 

At December 31, 2012 and 2011, cost for marketable securities was determined using the specific identification method.  A summary of the amortized costs and fair values of the Company's marketable securities at December 31 is shown in the following table.  All of the Company’s marketable securities are classified as Level 2, as defined by FASB ASC 820, with fair values determined using significant other observable inputs, which include quoted prices in markets that are not active, quoted prices of similar securities, recently executed transactions, broker quotations, and other inputs that are observable.  There were no transfers into or out of Level 2 during 2012.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

MARKETABLE SECURITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost

 

Fair Value

 

Gross Unrealized Gains

 

Gross Unrealized Losses

December 31, 2012

 

 

 

 

 

 

 

 

 

 

 

Tax-exempt Municipal Bonds

$
24,412 

 

$
24,494 

 

$
94 

 

$
12 

Variable Rate Demand Notes

 
31,092 

 

 
31,092 

 

 

-

 

 

-

Total Marketable Securities

$
55,504 

 

$
55,586 

 

$
94 

 

$
12 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2011

 

 

 

 

 

 

 

 

 

 

 

Tax-exempt Municipal Bonds

$
26,214 

 

$
26,326 

 

$
128 

 

$
16 

Variable Rate Demand Notes

 
33,034 

 

 
33,034 

 

 

-

 

 

-

Total Marketable Securities

$
59,248 

 

$
59,360 

 

$
128 

 

$
16 

 

Proceeds from sales of marketable securities totaled $29,767,000 in 2012, $82,521,000 in 2011, and $62,109,000 in 2010.  There were no gross gains or losses related to sales of marketable securities during the years ended December 31, 2012, 2011 and 2010.  Net unrealized losses included in other comprehensive income were $30,000, $87,000 and $792,000 before taxes for the years ended December 31, 2012, 2011, and 2010, respectively. No unrealized gains were reclassified out of accumulated other comprehensive income during the same periods.

 

The contractual maturities of the marketable securities held at December 31, 2012 are as follows: $5,697,000 within one year; $25,566,000 beyond one year to five years; $8,520,000 beyond five years to ten years, and $15,803,000 beyond ten years. All of the instruments in the beyond five year ranges are variable rate demand notes which as noted above can be tendered for cash at par plus interest within seven days.  Despite the stated contractual maturity date, to the extent a tender is not honored, the notes become immediately due and payable. 

 

(6)  ACCOUNTS RECEIVABLE:  The Company's accounts receivable are related to sales of products.  Credit is extended based on prior experience with the customer and evaluation of customers' financial condition.  Accounts receivable are primarily due within 30 to 60 days.  The Company does not accrue interest on past due accounts receivable.  Receivables are written off only after all collection attempts have failed and are based on individual credit evaluation and the specific circumstances of the customer.  The allowance for doubtful accounts represents an estimate of amounts considered uncollectible and is determined based on the Company's historical collection experience, adverse situations that may affect the customer's ability to pay, and prevailing economic conditions.

 

(7)  INVENTORIES:  Housewares/Small Appliance segment inventories are stated at the lower of cost or market with cost being determined principally on the last-in, first-out (LIFO) method.  Inventories for the Defense and Absorbent Products segments are stated at the lower of cost or market with cost being determined on the first-in, first-out (FIFO) method.

 

(8)  PROPERTY, PLANT AND EQUIPMENT:  Property, plant and equipment are stated at cost.  For machinery and equipment, all amounts which are fully depreciated have been eliminated from both the asset and allowance accounts.  Straight-line depreciation is provided in amounts sufficient to charge the costs of depreciable assets to operations over their service lives which are estimated at 15 to 40 years for buildings, 3 to 10 years for machinery and equipment, and 15 to 20 years for land improvements.  The Company reviews long lived assets consisting principally of property, plant, and equipment, for impairment when material events and changes in circumstances indicate the carrying value may not be recoverable.  See Note Q for a discussion of impairment charges recorded in the fourth quarter of 2012.

 

(9)  GOODWILL AND  INTANGIBLE ASSETS:  The Company recognizes the excess cost of acquired entities over the net amount assigned to the fair value of assets acquired and liabilities assumed as goodwill. Goodwill is tested for impairment on an annual basis at the start of the fourth quarter and between annual tests whenever an impairment is indicated, such as the occurrence of an event that would more likely than not reduce the fair value of the reporting unit below its carrying amount.  Impairment losses are recognized whenever the implied fair value of goodwill is less than its carrying value.  No goodwill impairments were recognized during 2012, 2011, or 2010.  The Company's goodwill as of December 31, 2012 and 2011 was $14,325,000 and $14,023,000, respectively, relating entirely to its Defense Products segment, which had no cumulative impairment charges at December 31, 2012.  During 2012 and 2011, $302,000 and $2,538,000, respectively, was added to goodwill as a result of the acquisition of the assets of ALS Technologies, Inc., more fully described in Note P. 

Intangible assets primarily consist of the value of customer relationships, trademarks, product backlogs, and non-compete agreements recognized as a result of the acquisition of the assets of ALS Technologies, Inc. mentioned above.  Intangible assets are amortized on a straight-line basis that approximates economic use, over periods ranging from one to nine years.  The gross carrying amount of the intangible assets subject to amortization was $4,445,000 at both December 31, 2012 and 2011, and accumulated amortization was $1,049,000 and $0 at December 31, 2012 and 2011, respectively.  Amortization expense was $1,049,000, $0, and $0 during the years ended December 31, 2012, 2011, and 2010, respectively. The amortization expense for 2012 was recorded entirely in the fourth quarter, as the value of the intangible assets became known at that time.  Estimated amortization expense for the five succeeding years are shown in the following table:

 

 

 

 

 

 

 

 

 

 

Years ending December 31:

 

(In thousands)

2013

 

$
667 

2014

 

 
667 

2015

 

 
667 

2016

 

 
663 

2017

 

 
550 

 

The amounts shown above related to goodwill and intangible assets subject to amortization differ from amounts previously reported as a result of provisional accounting related to the 2011 ALS Technologies, Inc. acquisition that was completed during the fourth quarter of 2012. 

 

(10) REVENUE RECOGNITION: For all of its segments, the Company recognizes revenue when product is shipped or title passes pursuant to customers' orders, the price is fixed and collection is reasonably assured.  For the Housewares/Small appliance segment, the Company provides for its 60-day over-the-counter return privilege and warranties at the time of shipment. Net sales for this segment are calculated by deducting early payment discounts and cooperative advertising allowances from gross sales.  The Company records cooperative advertising allowances when revenue is recognized.  See Note A(11) for a description of the Company’s policy for sales returns.

 

(11) SALES & RETURNS: Sales are recorded net of estimated discounts and returns.  The latter pertain primarily to warranty returns, returns of seasonal items, and returns of those newly introduced products sold with a return privilege.  The calculation of warranty returns is based in large part on historical data, while seasonal and new product returns are primarily developed using customer provided information.

 

(12) SHIPPING AND HANDLING COSTS:  In accordance with FASB ASC 605-45, Revenue Recognition, the Company includes shipping and handling revenues in net sales and shipping costs in cost of sales.

 

(13) ADVERTISING:  The Company's policy is to expense advertising as incurred and include it in selling and general expenses.  Advertising expense was $210,000, $70,000, and $9,000 in 2012, 2011, and 2010, respectively.

 

(14) PRODUCT WARRANTY:  The Company’s Housewares/Small Appliance segment’s products are generally warranted to the original owner to be free from defects in material and workmanship for a period of 1 to 12 years from date of purchase.  The Company allows a 60-day over-the-counter initial return privilege through cooperating dealers.  The Company services its products through a corporate service repair operation.  The Company estimates its product warranty liability based on historical percentages which have remained relatively consistent over the years.

 

The product warranty liability is included in accounts payable on the balance sheet.  The following table shows the changes in product warranty liability for the period:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

Year Ended December 31

 

2012

 

2011

Beginning balance January 1

$

341

 

$

326

Accruals during the period

 

528

 

 

523

Charges / payments made under the warranties

 

(481)

 

 

(508)

Balance December 31

$

388

 

$

341

 

(15) STOCK-BASED COMPENSATION:  The Company accounts for stock-based compensation in accordance with ASC 718, Compensation — Stock Compensation.  Under the fair value recognition provisions of ASC 718, stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense ratably over the requisite service period, net of estimated forfeitures. As more fully described in Note F, the Company awards non-vested restricted stock to employees and executive officers.

 

(16) INCOME TAXES:  Deferred income tax assets and liabilities are recognized for the differences between the financial and income tax reporting bases of assets and liabilities based on enacted tax rates and laws.  The deferred income tax provision or benefit generally reflects the net change in deferred income tax assets and liabilities during the year.  The current income tax provision reflects the tax consequences of revenues and expenses currently taxable or deductible on various income tax returns for the year reported.  Income tax contingencies are accounted for in accordance with FASB ASC 740, Income Taxes.  See Note H for summaries of the provision, the effective tax rates, and the tax effects of the cumulative temporary differences resulting in deferred tax assets and liabilities.

 

(17) RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS:

 

In December 2011, the FASB issued ASU No. 2011-11, Balance Sheet (Topic 210), Disclosures about Offsetting Assets and Liabilities. ASU 2011-11 requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. Entities are required to disclose both gross and net information about these instruments.  In January 2013, the FASB issued ASU No. 2013-01, Balance Sheet (Topic 210), Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.  ASU 2013-01 clarifies that ordinary trade receivables and receivables are not in the scope of ASU No. 2011-11.  Specifically, ASU 2011-11 applies only to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria contained in the FASB ASC or subject to a master netting arrangement or similar agreement.  ASU 2011-11 and 2013-01 are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The Company does not expect the adoption of either ASU will have a material impact on the Company's financial statements.

 

In June 2011, the FASB issued ASU No. 2011-05, Amendments to Topic 220, Comprehensive Income. Under the amendments in this ASU, an entity has the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both choices, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. This ASU eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders’ equity. The amendments in this ASU do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. The amendments in this ASU were to be applied retrospectively. For public entities, the amendments were effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. Early adoption was permitted, because compliance with the amendments was already permitted. The amendments did not require any transition disclosures. In December 2011, the FASB deferred the requirement to present reclassification adjustments for each component of accumulated other comprehensive income in both net income and other comprehensive income with the issuance of ASU 2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. Companies are required to either present amounts reclassified out of other comprehensive income on the face of the financial statements or disclose those amounts in the notes to the financial statements. During the deferral period, there is no requirement to separately present or disclose the reclassification adjustments into net income. The effective date of the deferral is consistent with the effective date of the ASU No. 2011-05. Except for the deferral of the presentation of reclassifications of items out of accumulated other comprehensive income, the Company adopted ASU 2011-5 retrospectively in the first quarter of 2012.  In February 2013, the FASB issued ASU 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which adds additional disclosure requirements for items reclassified out of accumulated other comprehensive income and will be effective for the first interim reporting period in 2013. The Company does not expect the adoption of the remaining deferred provisions of ASU 2011-05 to have a material impact on its Consolidated Financial Statements.


Summary Of Significant Accounting Policies (Policy)
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Summary Of Significant Accounting Policies (Policy)
 12 Months Ended
Dec. 31, 2012
Summary Of Significant Accounting Policies [Abstract]  
Use Of Estimates In The Preparation Of Financial Statements

(1)  USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS:  In preparation of the Company's Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and related revenues and expenses.   Actual results could differ from the estimates used by management.

Basis Of Presentation

(2)  BASIS OF PRESENTATION:  The Consolidated Financial Statements include the accounts of National Presto Industries, Inc. and its subsidiaries, all of which are wholly-owned.  All material intercompany accounts and transactions are eliminated.  For a further discussion of the Company's business and the segments in which it operates, please refer to Note L.

Reclassifications

(3)  RECLASSIFICATIONS:  Certain reclassifications have been made to the prior periods’ financial statements to conform to the current period’s financial statement presentation.  These reclassifications did not affect net earnings or stockholders’ equity as previously reported.

Fair Value Of Financial Instruments

(4)  FAIR VALUE OF FINANCIAL INSTRUMENTS:  The Company utilizes the methods of determining fair value as described in Financial Accounting Standard Board (“FASB”) Accounting Standard Codification (“ASC”) 820, Fair Value Measurements and Disclosures to value its financial assets and liabilities. ASC 820 utilizes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

 

The carrying amount for cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximates fair value due to the immediate or short-term maturity of these financial instruments. 

Cash Cash Equivalents And Marketable Securities

(5)  CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES: 

 

Cash and Cash Equivalents:  The Company considers all highly liquid marketable securities with an original maturity of three months or less to be cash equivalents.  Cash equivalents include money market funds.  The Company deposits its cash in high quality financial institutions. The balances, at times, may exceed federally insured limits.  Money market funds are reported at fair value determined using quoted prices in active markets for identical securities (Level 1, as defined by FASB ASC 820).

 

The Company's cash management policy provides for its bank disbursement accounts to be reimbursed on a daily basis.  Checks issued but not presented to the bank for payment of $4,091,000 and $5,313,000 at December 31, 2012 and 2011, respectively, are included as reductions of cash and cash equivalents or bank overdrafts in accounts payable, as appropriate.

 

Marketable Securities:  The Company has classified all marketable securities as available-for-sale which requires the securities to be reported at fair value, with unrealized gains and losses, net of tax, reported as a separate component of stockholders' equity.  Highly liquid, tax exempt variable rate demand notes with put options exercisable in three months or less are classified as marketable securities.

 

 

At December 31, 2012 and 2011, cost for marketable securities was determined using the specific identification method.  A summary of the amortized costs and fair values of the Company's marketable securities at December 31 is shown in the following table.  All of the Company’s marketable securities are classified as Level 2, as defined by FASB ASC 820, with fair values determined using significant other observable inputs, which include quoted prices in markets that are not active, quoted prices of similar securities, recently executed transactions, broker quotations, and other inputs that are observable.  There were no transfers into or out of Level 2 during 2012.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

MARKETABLE SECURITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost

 

Fair Value

 

Gross Unrealized Gains

 

Gross Unrealized Losses

December 31, 2012

 

 

 

 

 

 

 

 

 

 

 

Tax-exempt Municipal Bonds

$
24,412 

 

$
24,494 

 

$
94 

 

$
12 

Variable Rate Demand Notes

 
31,092 

 

 
31,092 

 

 

-

 

 

-

Total Marketable Securities

$
55,504 

 

$
55,586 

 

$
94 

 

$
12 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2011

 

 

 

 

 

 

 

 

 

 

 

Tax-exempt Municipal Bonds

$
26,214 

 

$
26,326 

 

$
128 

 

$
16 

Variable Rate Demand Notes

 
33,034 

 

 
33,034 

 

 

-

 

 

-

Total Marketable Securities

$
59,248 

 

$
59,360 

 

$
128 

 

$
16 

 

Proceeds from sales of marketable securities totaled $29,767,000 in 2012, $82,521,000 in 2011, and $62,109,000 in 2010.  There were no gross gains or losses related to sales of marketable securities during the years ended December 31, 2012, 2011 and 2010.  Net unrealized losses included in other comprehensive income were $30,000, $87,000 and $792,000 before taxes for the years ended December 31, 2012, 2011, and 2010, respectively. No unrealized gains were reclassified out of accumulated other comprehensive income during the same periods.

 

The contractual maturities of the marketable securities held at December 31, 2012 are as follows: $5,697,000 within one year; $25,566,000 beyond one year to five years; $8,520,000 beyond five years to ten years, and $15,803,000 beyond ten years. All of the instruments in the beyond five year ranges are variable rate demand notes which as noted above can be tendered for cash at par plus interest within seven days.  Despite the stated contractual maturity date, to the extent a tender is not honored, the notes become immediately due and payable. 

Accounts Receivable

(6)  ACCOUNTS RECEIVABLE:  The Company's accounts receivable are related to sales of products.  Credit is extended based on prior experience with the customer and evaluation of customers' financial condition.  Accounts receivable are primarily due within 30 to 60 days.  The Company does not accrue interest on past due accounts receivable.  Receivables are written off only after all collection attempts have failed and are based on individual credit evaluation and the specific circumstances of the customer.  The allowance for doubtful accounts represents an estimate of amounts considered uncollectible and is determined based on the Company's historical collection experience, adverse situations that may affect the customer's ability to pay, and prevailing economic conditions.

Inventories

(7)  INVENTORIES:  Housewares/Small Appliance segment inventories are stated at the lower of cost or market with cost being determined principally on the last-in, first-out (LIFO) method.  Inventories for the Defense and Absorbent Products segments are stated at the lower of cost or market with cost being determined on the first-in, first-out (FIFO) method.

Property, Plant And Equipment

(8)  PROPERTY, PLANT AND EQUIPMENT:  Property, plant and equipment are stated at cost.  For machinery and equipment, all amounts which are fully depreciated have been eliminated from both the asset and allowance accounts.  Straight-line depreciation is provided in amounts sufficient to charge the costs of depreciable assets to operations over their service lives which are estimated at 15 to 40 years for buildings, 3 to 10 years for machinery and equipment, and 15 to 20 years for land improvements.  The Company reviews long lived assets consisting principally of property, plant, and equipment, for impairment when material events and changes in circumstances indicate the carrying value may not be recoverable.  See Note Q for a discussion of impairment charges recorded in the fourth quarter of 2012.

Goodwill And Other Intangible Assets

(9)  GOODWILL AND  INTANGIBLE ASSETS:  The Company recognizes the excess cost of acquired entities over the net amount assigned to the fair value of assets acquired and liabilities assumed as goodwill. Goodwill is tested for impairment on an annual basis at the start of the fourth quarter and between annual tests whenever an impairment is indicated, such as the occurrence of an event that would more likely than not reduce the fair value of the reporting unit below its carrying amount.  Impairment losses are recognized whenever the implied fair value of goodwill is less than its carrying value.  No goodwill impairments were recognized during 2012, 2011, or 2010.  The Company's goodwill as of December 31, 2012 and 2011 was $14,325,000 and $14,023,000, respectively, relating entirely to its Defense Products segment, which had no cumulative impairment charges at December 31, 2012.  During 2012 and 2011, $302,000 and $2,538,000, respectively, was added to goodwill as a result of the acquisition of the assets of ALS Technologies, Inc., more fully described in Note P. 

Intangible assets primarily consist of the value of customer relationships, trademarks, product backlogs, and non-compete agreements recognized as a result of the acquisition of the assets of ALS Technologies, Inc. mentioned above.  Intangible assets are amortized on a straight-line basis that approximates economic use, over periods ranging from one to nine years.  The gross carrying amount of the intangible assets subject to amortization was $4,445,000 at both December 31, 2012 and 2011, and accumulated amortization was $1,049,000 and $0 at December 31, 2012 and 2011, respectively.  Amortization expense was $1,049,000, $0, and $0 during the years ended December 31, 2012, 2011, and 2010, respectively. The amortization expense for 2012 was recorded entirely in the fourth quarter, as the value of the intangible assets became known at that time.  Estimated amortization expense for the five succeeding years are shown in the following table:

 

 

 

 

 

 

 

 

 

 

Years ending December 31:

 

(In thousands)

2013

 

$
667 

2014

 

 
667 

2015

 

 
667 

2016

 

 
663 

2017

 

 
550 

 

The amounts shown above related to goodwill and intangible assets subject to amortization differ from amounts previously reported as a result of provisional accounting related to the 2011 ALS Technologies, Inc. acquisition that was completed during the fourth quarter of 2012. 

Revenue Recognition

(10) REVENUE RECOGNITION: For all of its segments, the Company recognizes revenue when product is shipped or title passes pursuant to customers' orders, the price is fixed and collection is reasonably assured.  For the Housewares/Small appliance segment, the Company provides for its 60-day over-the-counter return privilege and warranties at the time of shipment. Net sales for this segment are calculated by deducting early payment discounts and cooperative advertising allowances from gross sales.  The Company records cooperative advertising allowances when revenue is recognized.  See Note A(11) for a description of the Company’s policy for sales returns.

Sales & Returns

(11) SALES & RETURNS: Sales are recorded net of estimated discounts and returns.  The latter pertain primarily to warranty returns, returns of seasonal items, and returns of those newly introduced products sold with a return privilege.  The calculation of warranty returns is based in large part on historical data, while seasonal and new product returns are primarily developed using customer provided information.

Shipping And Handling Costs

(12) SHIPPING AND HANDLING COSTS:  In accordance with FASB ASC 605-45, Revenue Recognition, the Company includes shipping and handling revenues in net sales and shipping costs in cost of sales.

Advertising

(13) ADVERTISING:  The Company's policy is to expense advertising as incurred and include it in selling and general expenses.  Advertising expense was $210,000, $70,000, and $9,000 in 2012, 2011, and 2010, respectively.

Product Warranty

(14) PRODUCT WARRANTY:  The Company’s Housewares/Small Appliance segment’s products are generally warranted to the original owner to be free from defects in material and workmanship for a period of 1 to 12 years from date of purchase.  The Company allows a 60-day over-the-counter initial return privilege through cooperating dealers.  The Company services its products through a corporate service repair operation.  The Company estimates its product warranty liability based on historical percentages which have remained relatively consistent over the years.

 

The product warranty liability is included in accounts payable on the balance sheet.  The following table shows the changes in product warranty liability for the period:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

Year Ended December 31

 

2012

 

2011

Beginning balance January 1

$

341

 

$

326

Accruals during the period

 

528

 

 

523

Charges / payments made under the warranties

 

(481)

 

 

(508)

Balance December 31

$

388

 

$

341

 

Stock-Based Compensation

(15) STOCK-BASED COMPENSATION:  The Company accounts for stock-based compensation in accordance with ASC 718, Compensation — Stock Compensation.  Under the fair value recognition provisions of ASC 718, stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense ratably over the requisite service period, net of estimated forfeitures. As more fully described in Note F, the Company awards non-vested restricted stock to employees and executive officers.

Income Taxes

(16) INCOME TAXES:  Deferred income tax assets and liabilities are recognized for the differences between the financial and income tax reporting bases of assets and liabilities based on enacted tax rates and laws.  The deferred income tax provision or benefit generally reflects the net change in deferred income tax assets and liabilities during the year.  The current income tax provision reflects the tax consequences of revenues and expenses currently taxable or deductible on various income tax returns for the year reported.  Income tax contingencies are accounted for in accordance with FASB ASC 740, Income Taxes.  See Note H for summaries of the provision, the effective tax rates, and the tax effects of the cumulative temporary differences resulting in deferred tax assets and liabilities.


Summary Of Significant Accounting Policies (Tables)
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Summary Of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2012
Summary Of Significant Accounting Policies [Abstract]  
Summary Of The Amortized Costs And Fair Values Of Marketable Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

MARKETABLE SECURITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost

 

Fair Value

 

Gross Unrealized Gains

 

Gross Unrealized Losses

December 31, 2012

 

 

 

 

 

 

 

 

 

 

 

Tax-exempt Municipal Bonds

$
24,412 

 

$
24,494 

 

$
94 

 

$
12 

Variable Rate Demand Notes

 
31,092 

 

 
31,092 

 

 

-

 

 

-

Total Marketable Securities

$
55,504 

 

$
55,586 

 

$
94 

 

$
12 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2011

 

 

 

 

 

 

 

 

 

 

 

Tax-exempt Municipal Bonds

$
26,214 

 

$
26,326 

 

$
128 

 

$
16 

Variable Rate Demand Notes

 
33,034 

 

 
33,034 

 

 

-

 

 

-

Total Marketable Securities

$
59,248 

 

$
59,360 

 

$
128 

 

$
16 

 

Schedule Of Estimated Future Amortization Expense

 

 

 

 

 

 

 

 

Years ending December 31:

 

(In thousands)

2013

 

$
667 

2014

 

 
667 

2015

 

 
667 

2016

 

 
663 

2017

 

 
550 

 

Schedule Of Changes In Product Liability

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

Year Ended December 31

 

2012

 

2011

Beginning balance January 1

$

341

 

$

326

Accruals during the period

 

528

 

 

523

Charges / payments made under the warranties

 

(481)

 

 

(508)

Balance December 31

$

388

 

$

341

 


Summary Of Significant Accounting Policies (Narrative) (Details)
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Summary Of Significant Accounting Policies (Narrative) (Details) (USD $)
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Significant Accounting Policies [Line Items]      
Checks outstanding $ 4,091,000 $ 5,313,000  
Proceeds from sale of marketable securities 29,767,000 82,521,000 62,109,000
Net unrealized losses included OCI 30,000 87,000 792,000
Contractual maturities of marketable securities, within one year 5,697,000    
Contractual maturities of marketable securities, beyond one year to five years 25,566,000    
Contractual maturities of marketable securities, beyond five years to ten years 8,520,000    
Contractual maturities of marketable securities, beyond ten years 15,803,000    
Goodwill from acquisition 302,000 2,538,000  
Gross carrying amount of intangibles 4,445,000 4,445,000  
Accumulated amortization of intangibles 1,049,000 0  
Amortization expense 1,049,000 0 0
Advertising expense 210,000 70,000 9,000
Defense Products [Member]
      
Significant Accounting Policies [Line Items]      
Goodwill $ 14,325,000 $ 14,023,000  
Housewares/ Small Appliances [Member]
      
Significant Accounting Policies [Line Items]      
Sales returns coverage period 60 days    
Minimum [Member]
      
Significant Accounting Policies [Line Items]      
Accounts receivable, collection period 30 days    
Economic use period for intangibles 1 year    
Minimum [Member] | Housewares/ Small Appliances [Member]
      
Significant Accounting Policies [Line Items]      
Standard product warranty coverage period 1 year    
Minimum [Member] | Buildings [Member]
      
Significant Accounting Policies [Line Items]      
Useful life 15 years    
Minimum [Member] | Machinery and Equipment [Member]
      
Significant Accounting Policies [Line Items]      
Useful life 3 years    
Minimum [Member] | Land Improvements [Member]
      
Significant Accounting Policies [Line Items]      
Useful life 15 years    
Maximum [Member]
      
Significant Accounting Policies [Line Items]      
Accounts receivable, collection period 60 days    
Economic use period for intangibles 9 years    
Maximum [Member] | Housewares/ Small Appliances [Member]
      
Significant Accounting Policies [Line Items]      
Standard product warranty coverage period 12 years    
Maximum [Member] | Buildings [Member]
      
Significant Accounting Policies [Line Items]      
Useful life 40 years    
Maximum [Member] | Machinery and Equipment [Member]
      
Significant Accounting Policies [Line Items]      
Useful life 10 years    
Maximum [Member] | Land Improvements [Member]
      
Significant Accounting Policies [Line Items]      
Useful life 20 years    
Maximum [Member] | Variable Rate Demand Notes [Member]
      
Significant Accounting Policies [Line Items]      
Number of days to tender securites 7 days    

Summary Of Significant Accounting Policies (Summary Of The Amortized Costs And Fair Values Of Marketable Securities) (Details)
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Summary Of Significant Accounting Policies (Summary Of The Amortized Costs And Fair Values Of Marketable Securities) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]    
MARKETABLE SECURITIES, Amortized Cost $ 55,504 $ 59,248
MARKETABLE SECURITIES, Fair Value 55,586 59,360
MARKETABLE SECURITIES, Gross Unrealized Gains 94 128
MARKETABLE SECURITIES, Gross Unrealized Losses 12 16
Tax-Exempt Municipal Bonds [Member]
    
Schedule of Available-for-sale Securities [Line Items]    
MARKETABLE SECURITIES, Amortized Cost 24,412 26,214
MARKETABLE SECURITIES, Fair Value 24,494 26,326
MARKETABLE SECURITIES, Gross Unrealized Gains 94 128
MARKETABLE SECURITIES, Gross Unrealized Losses 12 16
Variable Rate Demand Notes [Member]
    
Schedule of Available-for-sale Securities [Line Items]    
MARKETABLE SECURITIES, Amortized Cost 31,092 33,034
MARKETABLE SECURITIES, Fair Value $ 31,092 $ 33,034

Summary Of Significant Accounting Policies (Schedule Of Estimated Future Amortization Expense) (Details)
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Summary Of Significant Accounting Policies (Schedule Of Estimated Future Amortization Expense) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Summary Of Significant Accounting Policies [Abstract]  
2013 $ 667
2014 667
2015 667
2016 663
2017 $ 550

Summary Of Significant Accounting Policies (Schedule Of Changes In Product Liability) (Details)
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Summary Of Significant Accounting Policies (Schedule Of Changes In Product Liability) (Details) (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Summary Of Significant Accounting Policies [Abstract]    
Beginning balance January 1 $ 341 $ 326
Accruals during the period 528 523
Changes/payments made under the warranties (481) (508)
Balance December 31 $ 388 $ 341

Inventories
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Inventories
 12 Months Ended
Dec. 31, 2012
Inventories [Abstract]  
Inventories

B.   INVENTORIES:

The amount of inventories valued on the LIFO basis was $29,463,000 and $30,159,000 as of December 31, 2012 and 2011, respectively, and consists of housewares/small appliance finished goods.  Under LIFO, inventories are valued at approximately $6,375,000 and $5,518,000 below current cost determined on a first-in, first-out (FIFO) basis at December 31, 2012 and 2011, respectively.  During the years ended December 31, 2012, 2011, and 2010, $858,000, $5,474,000, and $601,000, respectively, of a LIFO layer was liquidated.  The Company uses the LIFO method of inventory accounting to improve the matching of costs and revenues for the Housewares/Small Appliance segment. 

 

The following table describes that which would have occurred if LIFO inventories had been valued at current cost determined on a FIFO basis:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease) – (In thousands, except per share data)

Year

 

Cost of Sales

 

Net Earnings

 

Earnings Per Share

2012

 

$
(857)

 

$
546 

 

$
0.08 

2011

 

$
(1,313)

 

$
832 

 

$
0.12 

2010

 

$
(1,850)

 

$
1,169 

 

$
0.17 

 

This information is provided for comparison with companies using the FIFO basis.

 

Inventory for Defense, Absorbent Products, and raw materials of the Housewares/Small Appliance segments are valued under the FIFO method and total $53,901,000 and $64,347,000 at December 31, 2012 and 2011, respectively.  The December 31, 2012 FIFO total is comprised of $4,388,000 of finished goods, $40,340,000 of work in process, and $9,173,000 of raw material and supplies.  At December 31, 2011 the FIFO total was comprised of $2,600,000 of finished goods, $50,462,000 of work in process, and $11,285,000 of raw material and supplies.


Inventories (Tables)
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Inventories (Tables)
 12 Months Ended
Dec. 31, 2012
Inventories [Abstract]  
Schedule Of Potential Impact Of LIFO Valuation to FIFO Valuation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease) – (In thousands, except per share data)

Year

 

Cost of Sales

 

Net Earnings

 

Earnings Per Share

2012

 

$
(857)

 

$
546 

 

$
0.08 

2011

 

$
(1,313)

 

$
832 

 

$
0.12 

2010

 

$
(1,850)

 

$
1,169 

 

$
0.17 

 


Inventories (Narrative) (Details)
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Inventories (Narrative) (Details) (USD $)
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Liquidation of LIFO layer $ 858,000 $ 5,474,000 $ 601,000
FIFO inventory amount 53,901,000 64,347,000  
Finished goods 4,388,000 2,600,000  
Work in process 40,340,000 50,462,000  
Raw materials 9,173,000 11,285,000  
Housewares/ Small Appliances [Member]
      
LIFO inventory amount 29,463,000 30,159,000  
Inventory valuation, difference below FIFO $ 6,375,000 $ 5,518,000  

Inventories (Schedule Of Potential Impact Of LIFO Valuation to FIFO Valuation) (Details)
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Inventories (Schedule Of Potential Impact Of LIFO Valuation to FIFO Valuation) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Inventories [Abstract]      
Cost of Sales $ (857) $ (1,313) $ (1,850)
Net Earnings $ 546 $ 832 $ 1,169
Earnings Per Share $ 0.08 $ 0.12 $ 0.17

Accrued Liabilities
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Accrued Liabilities
 12 Months Ended
Dec. 31, 2012
Accrued Liabilities [Abstract]  
Accrued Liabilities

C.   ACCRUED LIABILITIES:

At December 31, 2012, accrued liabilities consisted of product liability $6,395,000, payroll $5,721,000, environmental $1,875,000, and other $1,263,000.  At December 31, 2011, accrued liabilities consisted of payroll $6,472,000, product liability $6,052,000, environmental $2,250,000, and other $1,261,000.     

 

The Company is self-insured for health care costs, although it does carry stop loss and other insurance to cover health care claims once they reach a specified threshold. The Company is also subject to product liability claims in the normal course of business.  It is partly self-insured for product liability claims, and therefore records an accrual for known claims and estimated incurred but unreported claims in the Company’s Consolidated Financial Statements.  The Company utilizes historical trends and other analysis to assist in determining the appropriate accrual.  An increase in the number or magnitude of claims could have a material impact on the Company’s financial condition and results of operations. The Company's policy is to accrue for legal fees expected to be incurred in connection with loss contingencies. See Note K for a discussion of environmental remediation liabilities.


Accrued Liabilities (Narrative) (Details)
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Accrued Liabilities (Narrative) (Details) (USD $)
Dec. 31, 2012
Dec. 31, 2011
Accrued Liabilities [Abstract]    
Accrued product liability $ 6,395,000 $ 6,052,000
Accrued payroll liability 5,721,000 6,472,000
Environmental accrued liability 1,875,000 2,250,000
Other accrued liabilities $ 1,263,000 $ 1,261,000

Treasury Stock
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Treasury Stock
 12 Months Ended
Dec. 31, 2012
Treasury Stock [Abstract]  
Treasury Stock

D.   TREASURY STOCK:

As of December 31, 2012, the Company has authority from the Board of Directors to reacquire an additional 504,600 shares.  No shares were reacquired in 2012, 2011, or 2010.   Treasury shares have been used for stock based compensation and to fund a portion of the Company's 401(k) contributions.


Treasury Stock (Narrative) (Details)
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Treasury Stock (Narrative) (Details)
Dec. 31, 2012
Treasury Stock [Abstract]  
Shares approved for repurchase 504,600

Net Earnings Per Share
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Net Earnings Per Share
 12 Months Ended
Dec. 31, 2012
Net Earnings Per Share [Abstract]  
Net Earnings Per Share

E.   NET EARNINGS PER SHARE:

Basic earnings per share is based on the weighted average number of common shares and participating securities outstanding during the period.  Diluted earnings per share also includes the dilutive effect of additional potential common shares issuable under the Company’s stock-based Incentive Compensation Plan, which are determined using the treasury stock method.  Unvested stock awards, which contain non-forfeitable rights to dividends, whether paid or unpaid (“participating securities”), are included in the number of shares outstanding for both basic and diluted earnings per share calculations.


Stock-Based Compensation
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Stock-Based Compensation
 12 Months Ended
Dec. 31, 2012
Stock-Based Compensation [Abstract]  
Stock-Based Compensation

F.   STOCK-BASED COMPENSATION: 

The Company, from time to time, enters into separate non-vested share-based payment arrangements with employees and executive officers under the Incentive Compensation Plan approved by stockholders on May 18, 2010, which authorized 50,000 shares to be available for grants.  The Compensation Committee of the Company’s Board of Directors approves all stock-based compensation awards for employees and executive officers of the Company.  The Company grants restricted stock that is subject to continued employment and vesting conditions, but has dividend and voting rights, and uses the fair-market value of the Company’s common stock on the grant date to measure the fair value of the awards.  The fair value of restricted stock is recognized as expense ratably over the requisite serviced period, net of estimated forfeitures.  The Company does not capitalize stock-based compensation costs.

 

During 2012, 2011, and 2010, the Company granted 1,695,  3,402 and 3,328 shares of restricted stock, respectively, to 16 employees and executive officers of the Company.  The restricted stock vests on specified dates in 2015 through 2018, subject to the recipients’ continued employment or service through each applicable vesting date. 

 

The Company recognized pre-tax compensation expense in the Consolidated Statements of Comprehensive Income related to stock-based compensation of $91,000, $29,000, and $3,000 in 2012, 2011, and 2010, respectively.  Certain accrued bonuses as of December 31, 2009 were converted to restricted stock awards during 2010.  The fair value of the awards on the 2010 grant date was $238,000, which approximates the amount that was included in selling and general expense in the Consolidated Statement of Comprehensive Income for 2009 when the bonuses were accrued. 

 

As of December 31, 2012, there was approximately $449,000 of unrecognized compensation cost related to the restricted stock awards that is expected to be recognized over a weighted-average period of 4.3 years.  There were no shares of restricted stock that vested during 2012, 2011, or 2010.

 

The following table summarizes the activity for non-vested restricted stock:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2012

 

2011

 

2010

 

Shares

 

Weighted Average Fair Value at Grant Date

 

Shares

 

Weighted Average Fair Value at Grant Date

 

Shares

 

Weighted Average Fair Value at Grant Date

Non-vested at beginning of period
6,730 

 

$
101.26 

 
3,328 

 

$
109.38 

 
0 

 

$

 -

Granted
1,695 

 

 
76.43 

 
3,402 

 

 
93.32 

 
3,328 

 

 
109.38 

Forfeited
(32)

 

 
93.60 

 
0 

 

 

 -

 
0 

 

 

 -

Non-vested at end of period
8,393 

 

$
96.28 

 
6,730 

 

$
101.26 

 
3,328 

 

$
109.38 

 


Stock-Based Compensation (Tables)
v0.0.0.0
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2012
Stock-Based Compensation [Abstract]  
Schedule Of Activity For Non-Vested Restricted Sock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2012

 

2011

 

2010

 

Shares

 

Weighted Average Fair Value at Grant Date

 

Shares

 

Weighted Average Fair Value at Grant Date

 

Shares

 

Weighted Average Fair Value at Grant Date

Non-vested at beginning of period
6,730 

 

$
101.26 

 
3,328 

 

$
109.38 

 
0 

 

$

 -

Granted
1,695 

 

 
76.43 

 
3,402 

 

 
93.32 

 
3,328 

 

 
109.38 

Forfeited
(32)

 

 
93.60 

 
0 

 

 

 -

 
0 

 

 

 -

Non-vested at end of period
8,393 

 

$
96.28 

 
6,730 

 

$
101.26 

 
3,328 

 

$
109.38 

 


Stock-Based Compensation (Narrative) (Details)
v0.0.0.0
Stock-Based Compensation (Narrative) (Details) (USD $)
 12 Months Ended
Dec. 31, 2012
employee
Dec. 31, 2011
Dec. 31, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares authorized 50,000    
Shares granted 1,695 3,402 3,328
Number of plan participants 16    
Pre-tax compensation expense $ 91,000 $ 29,000 $ 3,000
Grant date fair value of converted bonuses     238,000
Unrecognized compensation cost $ 449,000    
Unrecognized compensation cost, recognition period 4 years 3 months 18 days    
Minimum [Member]
      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting year 2015    
Maximum [Member]
      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting year 2018    
Restricted Stock [Member]
      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares granted 1,695 3,402 3,328

Stock-Based Compensation (Schedule Of Activity For Non-Vested Restricted Sock) (Details)
v0.0.0.0
Stock-Based Compensation (Schedule Of Activity For Non-Vested Restricted Sock) (Details) (USD $)
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Stock-Based Compensation [Abstract]      
Non-vested at beginning of period, Shares 6,730 3,328 0
Granted, Shares 1,695 3,402 3,328
Forfeited, Shares (32) 0 0
Non-vested at end of period, Shares 8,393 6,730 3,328
Non-vested at beginning of period, Weighted Average Fair Value at Grant Date $ 101.26 $ 109.38  
Granted, Weighted Average Fair Value at Grant Date $ 76.43 $ 93.32 $ 109.38
Forfeited, Weighted Average Fair Value at Grant Date $ 93.60    
Non-vested at end of period, Weighted Average Fair Value at Grant Date $ 96.28 $ 101.26 $ 109.38

Retirement Plans
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Retirement Plans
 12 Months Ended
Dec. 31, 2012
Retirement Plans [Abstract]  
Retirement Plans

G.   401(K) PLAN:

The Company sponsors a 401(k) retirement plan that covers substantially all non-union employees. Historically, the Company matched up to 50% of the first 4% of salary contributed by employees to the plan. This matching contribution was made with common stock. Starting in 2004, the Company began to match, in cash, an additional 50% of the first 4% of salary contributed by employees plus 3% of total compensation for certain employees. Contributions made from treasury stock, including the Company's related cash dividends, totaled $1,391,000 in 2012, $1,030,000 in 2011, and $904,000 in 2010. In addition, the Company made cash contributions of $781,000 in 2012, $697,000 in 2011, and $667,000 in 2010 to the 401(k) Plan.  The Company also contributed $396,000, $369,000, and $370,000 to the 401(k) retirement plan covering its union employees at the Amron Division of the AMTEC subsidiary during the years ended December 31, 2012, 2011, and 2010, respectively.


Retirement Plans (Narrative) (Details)
v0.0.0.0
Retirement Plans (Narrative) (Details) (USD $)
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Employer Contribution Common Stock [Member]
      
Defined Benefit Plan Disclosure [Line Items]      
Percentage of specified salary amount matched by employer 50.00%    
Percentage of employee salary eligible for matching 4.00%    
Employer contributions $ 1,391,000 $ 1,030,000 $ 904,000
Employer Contribution Cash [Member]
      
Defined Benefit Plan Disclosure [Line Items]      
Percentage of specified salary amount matched by employer 50.00%    
Percentage of employee salary eligible for matching 4.00%    
Employer contributions 781,000 697,000 667,000
Certain Employees [Member]
      
Defined Benefit Plan Disclosure [Line Items]      
Percentage of employee salary eligible for matching 3.00%    
Defined Benefit Plan, Union Employees [Member]
      
Defined Benefit Plan Disclosure [Line Items]      
Employer contributions $ 396,000 $ 369,000 $ 370,000

Income Taxes
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Income Taxes
 12 Months Ended
Dec. 31, 2012
Income Taxes [Abstract]  
Income Taxes

H.   INCOME TAXES:

 

The following table summarizes the provision for income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For Years Ended December 31 (in thousands)

 

2012

 

2011

 

2010

Current:

 

 

 

 

 

 

 

 

Federal

$
22,165 

 

$
17,596 

 

$
30,318 

State

 
4,187 

 

 
4,365 

 

 
5,905 

 

 
26,352 

 

 
21,961 

 

 
36,223 

Deferred:

 

 

 

 

 

 

 

 

Federal

 
(3,938)

 

 
4,972 

 

 
(997)

State

 
(865)

 

 
124 

 

 
598 

 

 
(4,803)

 

 
5,096 

 

 
(399)

Total tax provision

$
21,549 

 

$
27,057 

 

$
35,824 

 

The effective rate of the provision for income taxes as shown in the Consolidated Statements of Comprehensive Income differs from the applicable statutory federal income tax rate for the following reasons:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent of Pre-tax Income

 

2012

 

2011

 

2010

Statutory rate
35.0% 

 
35.0% 

 
35.0% 

State tax, net of federal benefit
3.6% 

 
3.9% 

 
4.6% 

Tax exempt interest and dividends
(0.3%)

 
(0.5%)

 
(0.7%)

Other
(2.6%)

 
(2.3%)

 
(2.8%)

Effective rate
35.7% 

 
36.1% 

 
36.1% 

 

Deferred tax assets and liabilities are recorded based on the differences between the tax basis of assets and liabilities and their carrying amounts for financial reporting purposes.  The tax effects of the cumulative temporary differences resulting in deferred tax assets and liabilities are as follows at December 31:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

2012

 

2011

Deferred tax assets

 

 

 

 

 

Doubtful accounts

$
3,245 

 

$
541 

Insurance (primarily product liability)

 
2,412 

 

 
2,306 

Vacation

 
961 

 

 
951 

Environmental

 
745 

 

 
894 

Goodwill and other intangibles

 
697 

 

 
859 

Other

 
846 

 

 
589 

Total deferred tax assets

 
8,906 

 

 
6,140 

 

 

 

 

 

 

Deferred tax liabilities

 

 

 

 

 

Depreciation

 
7,339 

 

 
9,366 

Other

 
29 

 

 
39 

Total deferred tax liabilities

 
7,368 

 

 
9,405 

 

 

 

 

 

 

Net deferred tax assets (liabilities)

$
1,538 

 

$
(3,265)

 

 

The Company establishes tax reserves in accordance with FASB ASC 740, Income Taxes.  As of December 31, 2012, the carrying amount of the Company’s gross unrecognized tax benefits was $209,000 which, if recognized, would affect the Company’s effective income tax rate.

 

The following is a reconciliation of the Company’s unrecognized tax benefits for the years ended December 31, 2012 and 2011:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

 

2012

 

2011

Balance at January 1

 

$
248 

 

$
418 

Additions for tax positions taken related to the current year

 

 
56 

 

 
87 

Additions for tax positions taken related to prior years

 

 
115 

 

 
12 

Settlements

 

 
(210)

 

 
(269)

Balance at December 31

 

$
209 

 

$
248 

 

It is the Company’s practice to include interest and penalties in tax expense.  During the years ended December 31, 2012 and 2011, the Company accrued approximately $13,000 and $11,000 in interest, respectively.

 

The Company is subject to U.S. federal income tax as well as income taxes of multiple states.  During the year ended December 31, 2012, the Company finalized its most recent audit by the Internal Revenue Service for the tax years 2009 and 2010.  For all states in which it does business, the Company is subject to state audit statutes.


Income Taxes (Tables)
v0.0.0.0
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2012
Income Taxes [Abstract]  
Schedule Of Provision For Income Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For Years Ended December 31 (in thousands)

 

2012

 

2011

 

2010

Current:

 

 

 

 

 

 

 

 

Federal

$
22,165 

 

$
17,596 

 

$
30,318 

State

 
4,187 

 

 
4,365 

 

 
5,905 

 

 
26,352 

 

 
21,961 

 

 
36,223 

Deferred:

 

 

 

 

 

 

 

 

Federal

 
(3,938)

 

 
4,972 

 

 
(997)

State

 
(865)

 

 
124 

 

 
598 

 

 
(4,803)

 

 
5,096 

 

 
(399)

Total tax provision

$
21,549 

 

$
27,057 

 

$
35,824 

 

Reconciliation Of Statutory Rate to Effective Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent of Pre-tax Income

 

2012

 

2011

 

2010

Statutory rate
35.0% 

 
35.0% 

 
35.0% 

State tax, net of federal benefit
3.6% 

 
3.9% 

 
4.6% 

Tax exempt interest and dividends
(0.3%)

 
(0.5%)

 
(0.7%)

Other
(2.6%)

 
(2.3%)

 
(2.8%)

Effective rate
35.7% 

 
36.1% 

 
36.1% 

 

Schedule Of Deferred Tax Assets And Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

2012

 

2011

Deferred tax assets

 

 

 

 

 

Doubtful accounts

$
3,245 

 

$
541 

Insurance (primarily product liability)

 
2,412 

 

 
2,306 

Vacation

 
961 

 

 
951 

Environmental

 
745 

 

 
894 

Goodwill and other intangibles

 
697 

 

 
859 

Other

 
846 

 

 
589 

Total deferred tax assets

 
8,906 

 

 
6,140 

 

 

 

 

 

 

Deferred tax liabilities

 

 

 

 

 

Depreciation

 
7,339 

 

 
9,366 

Other

 
29 

 

 
39 

Total deferred tax liabilities

 
7,368 

 

 
9,405 

 

 

 

 

 

 

Net deferred tax assets (liabilities)

$
1,538 

 

$
(3,265)

 

Reconciliation Of Unrecognized Tax Benefits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

 

2012

 

2011

Balance at January 1

 

$
248 

 

$
418 

Additions for tax positions taken related to the current year

 

 
56 

 

 
87 

Additions for tax positions taken related to prior years

 

 
115 

 

 
12 

Settlements

 

 
(210)

 

 
(269)

Balance at December 31

 

$
209 

 

$
248 

 


Income Taxes (Narrative) (Details)
v0.0.0.0
Income Taxes (Narrative) (Details) (USD $)
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Income Taxes [Abstract]      
Gross unrecognized tax benefits $ 209,000 $ 248,000 $ 418,000
Accrued interest included in tax expense $ 13,000 $ 11,000  

Income Taxes (Schedule Of Provision For Income Taxes) (Details)
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Income Taxes (Schedule Of Provision For Income Taxes) (Details) (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Income Taxes [Abstract]      
Current, Federal $ 22,165 $ 17,596 $ 30,318
Current, State 4,187 4,365 5,905
Current provision for income taxes 26,352 21,961 36,223
Deferred, Federal (3,938) 4,972 (997)
Deferred, State (865) 124 598
Deferred provision for income taxes (4,803) 5,096 (399)
Total tax provision $ 21,549 $ 27,057 $ 35,824

Income Taxes (Reconciliation Of Statutory Rate to Effective Rate) (Details)
v0.0.0.0
Income Taxes (Reconciliation Of Statutory Rate to Effective Rate) (Details)
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Income Taxes [Abstract]      
Statutory rate 35.00% 35.00% 35.00%
State tax, net of federal benefit 3.60% 3.90% 4.60%
Tax exempt interest and dividends (0.30%) (0.50%) (0.70%)
Other (2.60%) (2.30%) (2.80%)
Effective Rate 35.70% 36.10% 36.10%

Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details)
v0.0.0.0
Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Income Taxes [Abstract]    
Doubtful accounts $ 3,245 $ 541
Insurance (primarily product liability) 2,412 2,306
Vacation 961 951
Environmental 745 894
Goodwill and other intangibles 697 859
Other 846 589
Total deferred tax assets 8,906 6,140
Depreciation 7,339 9,366
Other 29 39
Total deferred tax liabilities 7,368 9,405
Net deferred tax assets (liabilities) $ 1,538 $ (3,265)

Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Details)
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Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Details) (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Income Taxes [Abstract]    
Balance at January 1 $ 248 $ 418
Additions for tax positions taken related to the current year 56 87
Additions for tax positions taken related to prior years 115 12
Settlements (210) (269)
Balance at December 31 $ 209 $ 248

Commitments And Contingencies
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Commitments And Contingencies
 12 Months Ended
Dec. 31, 2012
Commitments And Contingencies [Abstract]  
Commitments And Contingencies

I.   COMMITMENTS AND CONTINGENCIES

The Company is involved in largely routine litigation incidental to its business.  Management believes the ultimate outcome of this litigation will not have a material effect on the Company's consolidated financial position, liquidity, or results of operations.

 

As of December 31, 2012, the Company had commitments to purchase approximately $13,900,000 of equipment for the Absorbent Products segment, most of which is expected to be received by the Company in 2013.  The Company also had commitments of approximately $2,500,000 for the Defense segment, which is part of its facility construction project in Florida scheduled for completion in 2013.  The construction project is more fully described in Note P.


Commitments And Contingencies (Details)
v0.0.0.0
Commitments And Contingencies (Details) (USD $)
Dec. 31, 2012
Defense Products [Member]
  
Purchase Commitment, Excluding Long-term Commitment [Line Items]  
Purchase commitments $ 2,500,000
Absorbent Products [Member]
  
Purchase Commitment, Excluding Long-term Commitment [Line Items]  
Purchase commitments $ 13,900,000

Concentrations
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Concentrations
 12 Months Ended
Dec. 31, 2012
Concentrations [Abstract]  
Concentrations

J.   CONCENTRATIONS:

In the Housewares/Small Appliance segment, one customer accounted for 10% and 11% of consolidated net sales for the years ended December 31, 2012 and 2010, respectively.  In the Absorbent Products segment, one customer accounted for 12% and 11% of consolidated net sales for the years ended December 31, 2011 and 2010, respectively. 

 

The Company sources most of its housewares/small appliances from vendors in the Orient and, as a result, risks deliveries from the Orient being disrupted by labor or supply problems at the vendors, or transportation delays.  Should such problems or delays materialize, products might not be available in sufficient quantities during the prime selling period.  The Company has made and will continue to make every reasonable effort to prevent these problems; however, there is no assurance that its efforts will be totally effective.  As the majority of the Housewares/Small Appliance segment’s suppliers are located in China, periodic changes in the U.S. dollar and Chinese Renminbi (RMB) exchange rates do have an impact on the segment’s product costs.  To date, any material impact from fluctuations in the exchange rate has been to the cost of products secured via purchase orders issued subsequent to the currency value change. Foreign transaction gains/losses are immaterial to the financial statements for all years presented.

 

The Company's Defense segment manufactures products primarily for the U.S. Department of Defense (DOD) and DOD prime contractors.  As a consequence, this segment's future business essentially depends on the product needs and governmental funding of the DOD.  During 2012, 2011, and 2010, almost all of the work performed by this segment directly or indirectly for the DOD was performed on a fixed-price basis.  Under fixed-price contracts, the price paid to the contractor is awarded based on competition at the outset of the contract and therefore, with the exception of limited escalation provisions on specific materials, is generally not subject to any adjustments reflecting the actual costs incurred by the contractor. In addition, with the award of the 40mm systems contract, key components and services are provided by third party subcontractors, several of which the segment is required to work with by government edict.   Under the contract, the segment is responsible for the performance of those subcontractors, many of which it does not control.  The Defense segment's contracts and subcontracts contain the customary provision permitting termination at any time for the convenience of the government, with payment for any work completed, associated profit, and inventory/work in process at the time of termination.  Materials used in the Defense segment are available from multiple sources.  As of December 31, 2012, 242 employees of Amron, or 24% of the Company’s total workforce, are members of the United Steel Workers union.  The contract between Amron and the union is effective through February 28, 2015. 

 

Raw materials for the Absorbent Products segment are commodities that are typically available from multiple sources.


Concentrations (Narrative) (Details)
v0.0.0.0
Concentrations (Narrative) (Details)
 12 Months Ended
Dec. 31, 2012
employee
Dec. 31, 2011
Absorbent Products [Member]
customer
Dec. 31, 2010
Absorbent Products [Member]
customer
Dec. 31, 2012
Housewares/ Small Appliances [Member]
customer
Dec. 31, 2010
Housewares/ Small Appliances [Member]
customer
Major customers contributing to net sales   1 1 1 1
Net sales, major customer, percentage   12.00% 11.00% 10.00% 11.00%
Number of entity empolyees, union members 242        
Percentage of entity employees, union members 24.00%        

Environmental
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Environmental
 12 Months Ended
Dec. 31, 2012
Environmental [Abstract]  
Environmental

K.   ENVIRONMENTAL

In May 1986, the Company’s Eau Claire, Wisconsin site was placed on the United States Environmental Protection Agency’s National Priorities List under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 because of hazardous waste deposited on the property.  As of December 31, 1998, all remediation projects required at the Company's Eau Claire, Wisconsin, site had been installed, were fully operational, and restoration activities had been completed.  In addition, the Company is a member of a group of companies that may have disposed of waste into an Eau Claire area landfill in the 1960s and 1970s.  After the landfill was closed, elevated volatile organic compounds were discovered in the groundwater.  Remediation plans were established, and the costs associated with remediation and monitoring at the landfill are split evenly between the group and the City of Eau Claire.  As of December 31, 2012, there does not appear to be exposure related to this site that would have a material impact on the operations or financial condition of the Company.

 

Based on factors known as of December 31, 2012, it is believed that the Company's existing environmental accrued liability reserve will be adequate to satisfy on-going remediation operations and monitoring activities both on- and off-site; however, should environmental agencies require additional studies, extended monitoring, or remediation projects, it is possible that the existing accrual could be inadequate.  Management believes that in the absence of any unforeseen future developments, known environmental matters will not have any material effect on the results of operations or financial condition of the Company.  The Company’s environmental accrued liability on an undiscounted basis was $1,875,000 and $2,250,000 as of December 31, 2012 and 2011, respectively, and is included in accrued liabilities on the balance sheet. 

 

Expected future payments for environmental matters are as follows:

 

 

 

 

 

 

 

 

 

(In thousands)

Years Ending December 31:

 

 

2013

$
310 

2014

 
245 

2015

 
230 

2016

 
215 

2017

 
200 

Thereafter

 
675 

 

$
1,875 

 


Environmental (Tables)
v0.0.0.0
Environmental (Tables)
 12 Months Ended
Dec. 31, 2012
Environmental [Abstract]  
Schedule Of Expected Future Payments Of Environmental Matters [Table Text Block]

 

 

 

 

 

 

 

(In thousands)

Years Ending December 31:

 

 

2013

$
310 

2014

 
245 

2015

 
230 

2016

 
215 

2017

 
200 

Thereafter

 
675 

 

$
1,875 

 


Environmental (Narrative) (Details)
v0.0.0.0
Environmental (Narrative) (Details) (USD $)
Dec. 31, 2012
Dec. 31, 2011
Environmental [Abstract]    
Environmental accrued liability $ 1,875,000 $ 2,250,000

Environmental (Schedule Of Expected Future Payments Of Environmental Matters) (Details)
v0.0.0.0
Environmental (Schedule Of Expected Future Payments Of Environmental Matters) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Environmental [Abstract]  
2013 $ 310
2014 245
2015 230
2016 215
2017 200
Thereafter 675
Future payments for environmental matters $ 1,875

Business Segments
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Business Segments
 12 Months Ended
Dec. 31, 2012
Business Segments [Abstract]  
Business Segments

L.   BUSINESS SEGMENTS:

The Company operates in three business segments.  The Company identifies its segments based on the Company's organization structure, which is primarily by principal products.  The principal product groups are Housewares/Small Appliances, Defense Products, and Absorbent Products.  Sales for all three segments are primarily to customers in North America.

 

The Housewares/Small Appliance segment designs, markets, and distributes housewares and small appliances.  These products are sold primarily in the United States and Canada directly to retail outlets and also through independent distributors.  As more fully described in Note J, the Company primarily sources its Housewares/Small Appliance products from non-affiliated suppliers located in the Orient.  Sales are seasonal, with the normal peak sales period occurring in the fourth quarter of the year prior to the holiday season.

 

The Defense segment was started in 2001 with the acquisition of AMTEC Corporation, which manufactures precision mechanical and electromechanical assemblies for the U.S. Government and prime contractors.  During 2005, and again during 2010, AMTEC Corporation was one of two prime contractors selected by the Army to supply all requirements for the 40mm family of practice and tactical ammunition cartridges for a period of five years.  AMTEC's manufacturing plant is located in Janesville, Wisconsin.  During 2003, this segment was expanded with the acquisition of Spectra Technologies, LLC of East Camden, Arkansas.  This facility performs Load, Assemble, and Pack (LAP) operations on ordnance-related products for the U.S. Government and prime contractors.  During 2006, the segment was expanded with the acquisition of certain assets of Amron, LLC of Antigo, Wisconsin, which primarily manufactures cartridge cases used in medium caliber (20-40mm) ammunition.  In 2011 the segment was further augmented with the purchase of certain assets of ALS Technologies, Inc. of Bull Shoals, Arkansas, which manufactures less than lethal ammunitions.  The Company has begun the process of relocating this operation to Perry, Florida.  See Note P for further discussion of the relocation. 

 

The Absorbent Products segment was started in 2001 with the acquisition of certain assets from RMED International, Inc, forming Presto Absorbent Products, Inc.  This company manufactured diapers. During 2003, this segment was expanded with the purchase of the assets of NCN Hygienic Products, Inc., a Marietta, Georgia manufacturer of adult incontinence products and training pads for dogs.  Starting in 2004, the company began making adult incontinence products at the Company's facilities in Eau Claire, Wisconsin.  The segment’s products are sold to distributors and other absorbent product manufacturers.  In 2007, the Company completed the closure of the Georgia facility and consolidated its absorbent products manufacturing in the Eau Claire, Wisconsin facility.  It no longer manufactures dog pads or baby diapers.

 

In the following summary, operating profit represents earnings before other income (loss), principally interest income, and income taxes.  The Company's segments operate discretely from each other with no shared manufacturing facilities.  Costs associated with corporate activities (such as cash and marketable securities management) and the assets associated with such activities are included within the Housewares/Small Appliance segment for all periods presented.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

Housewares / Small Appliances

 

Defense Products

 

Absorbent Products

 

Total

Year ended December 31, 2012

 

 

 

 

 

 

 

 

 

 

 

External net sales

$
145,023 

 

$
244,998 

 

$
82,469 

 

$
472,490 

Gross profit

 
27,858 

 

 
64,095 

 

 
2,910 

 

 
94,863 

Operating profit

 
15,714 

 

 
55,071 

 

 
(11,066)

 

 
59,719 

Total assets

 
194,214 

 

 
102,406 

 

 
57,292 

 

 
353,912 

Depreciation and amortization

 
1,088 

 

 
4,203 

 

 
5,894 

 

 
11,185 

Capital expenditures

 
1,138 

 

 
2,681 

 

 
9,765 

 

 
13,584 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2011

 

 

 

 

 

 

 

 

 

 

 

External net sales

$
130,852 

 

$
202,372 

 

$
97,797 

 

$
431,021 

Gross profit

 
27,016 

 

 
62,006 

 

 
4,737 

 

 
93,759 

Operating profit

 
16,716 

 

 
55,049 

 

 
1,972 

 

 
73,737 

Total assets

 
238,534 

 

 
109,137 

 

 
63,970 

 

 
411,641 

Depreciation

 
993 

 

 
3,469 

 

 
4,575 

 

 
9,037 

Capital expenditures

 
3,249 

 

 
1,558 

 

 
10,196 

 

 
15,003 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2010

 

 

 

 

 

 

 

 

 

 

 

External net sales

$
157,474 

 

$
240,762 

 

$
80,764 

 

$
479,000 

Gross profit

 
37,032 

 

 
68,071 

 

 
8,471 

 

 
113,574 

Operating profit

 
27,558 

 

 
61,443 

 

 
8,250 

 

 
97,251 

Total assets

 
256,945 

 

 
106,487 

 

 
51,701 

 

 
415,133 

Depreciation

 
926 

 

 
3,650 

 

 
4,061 

 

 
8,637 

Capital expenditures

 
1,117 

 

 
3,473 

 

 
13,382 

 

 
17,972 

 


Business Segments (Tables)
v0.0.0.0
Business Segments (Tables)
 12 Months Ended
Dec. 31, 2012
Business Segments [Abstract]  
Summary Of Business Segments Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

Housewares / Small Appliances

 

Defense Products

 

Absorbent Products

 

Total

Year ended December 31, 2012

 

 

 

 

 

 

 

 

 

 

 

External net sales

$
145,023 

 

$
244,998 

 

$
82,469 

 

$
472,490 

Gross profit

 
27,858 

 

 
64,095 

 

 
2,910 

 

 
94,863 

Operating profit

 
15,714 

 

 
55,071 

 

 
(11,066)

 

 
59,719 

Total assets

 
194,214 

 

 
102,406 

 

 
57,292 

 

 
353,912 

Depreciation and amortization

 
1,088 

 

 
4,203 

 

 
5,894 

 

 
11,185 

Capital expenditures

 
1,138 

 

 
2,681 

 

 
9,765 

 

 
13,584 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2011

 

 

 

 

 

 

 

 

 

 

 

External net sales

$
130,852 

 

$
202,372 

 

$
97,797 

 

$
431,021 

Gross profit

 
27,016 

 

 
62,006 

 

 
4,737 

 

 
93,759 

Operating profit

 
16,716 

 

 
55,049 

 

 
1,972 

 

 
73,737 

Total assets

 
238,534 

 

 
109,137 

 

 
63,970 

 

 
411,641 

Depreciation

 
993 

 

 
3,469 

 

 
4,575 

 

 
9,037 

Capital expenditures

 
3,249 

 

 
1,558 

 

 
10,196 

 

 
15,003 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2010

 

 

 

 

 

 

 

 

 

 

 

External net sales

$
157,474 

 

$
240,762 

 

$
80,764 

 

$
479,000 

Gross profit

 
37,032 

 

 
68,071 

 

 
8,471 

 

 
113,574 

Operating profit

 
27,558 

 

 
61,443 

 

 
8,250 

 

 
97,251 

Total assets

 
256,945 

 

 
106,487 

 

 
51,701 

 

 
415,133 

Depreciation

 
926 

 

 
3,650 

 

 
4,061 

 

 
8,637 

Capital expenditures

 
1,117 

 

 
3,473 

 

 
13,382 

 

 
17,972 

 


Business Segments (Narrative) (Details)
v0.0.0.0
Business Segments (Narrative) (Details)
 12 Months Ended
Dec. 31, 2012
segment
Dec. 31, 2010
contract
Business Segments [Abstract]    
Operating segments 3  
Government contract, number of contractors   2
Supply commitment, commitment term   5 years

Business Segments (Schedule Of Segment Activity) (Details)
v0.0.0.0
Business Segments (Schedule Of Segment Activity) (Details) (USD $)
 3 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jul. 01, 2012
Apr. 01, 2012
Dec. 31, 2011
Oct. 02, 2011
Jul. 03, 2011
Apr. 03, 2011
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Segment Reporting Information [Line Items]                      
External net sales $ 141,790,000 $ 116,813,000 $ 117,114,000 $ 96,773,000 $ 119,006,000 $ 104,861,000 $ 98,268,000 $ 108,886,000 $ 472,490,000 $ 431,021,000 $ 479,000,000
Gross profit 32,010,000 22,907,000 19,594,000 20,352,000 27,483,000 23,657,000 20,665,000 21,954,000 94,863,000 93,759,000 113,574,000
Operating profit                 59,719,000 73,737,000 97,251,000
Total assets 353,912,000       411,641,000       353,912,000 411,641,000 415,133,000
Depreciation and amortization                 11,185,000 9,037,000 8,637,000
Capital expenditures                 13,584,000 15,003,000 17,972,000
Housewares/ Small Appliances [Member]
                      
Segment Reporting Information [Line Items]                      
External net sales                 145,023,000 130,852,000 157,474,000
Gross profit                 27,858,000 27,016,000 37,032,000
Operating profit                 15,714,000 16,716,000 27,558,000
Total assets 194,214,000       238,534,000       194,214,000 238,534,000 256,945,000
Depreciation and amortization                 1,088,000 993,000 926,000
Capital expenditures                 1,138,000 3,249,000 1,117,000
Defense Products [Member]
                      
Segment Reporting Information [Line Items]                      
External net sales                 244,998,000 202,372,000 240,762,000
Gross profit                 64,095,000 62,006,000 68,071,000
Operating profit                 55,071,000 55,049,000 61,443,000
Total assets 102,406,000       109,137,000       102,406,000 109,137,000 106,487,000
Depreciation and amortization                 4,203,000 3,469,000 3,650,000
Capital expenditures                 2,681,000 1,558,000 3,473,000
Absorbent Products [Member]
                      
Segment Reporting Information [Line Items]                      
External net sales                 82,469,000 97,797,000 80,764,000
Gross profit                 2,910,000 4,737,000 8,471,000
Operating profit                 (11,066,000) 1,972,000 8,250,000
Total assets 57,292,000       63,970,000       57,292,000 63,970,000 51,701,000
Depreciation and amortization                 5,894,000 4,575,000 4,061,000
Capital expenditures                 $ 9,765,000 $ 10,196,000 $ 13,382,000

Operating Leases
v0.0.0.0
Operating Leases
 12 Months Ended
Dec. 31, 2012
Operating Leases [Abstract]  
Operating Leases

 

M.   OPERATING LEASES

The Company leases office, manufacturing, and warehouse facilities and equipment under noncancelable operating leases, many of which contain renewal options ranging from one to five years.  Rent expense was approximately $826,000, $806,000, and $771,000 for the years ended December 31, 2012, 2011, and 2010, respectively.  Future minimum annual rental payments required under operating leases are as follows:

 

 

 

 

 

 

 

 

 

 

Years ending December 31:

 

(In thousands)

2013

 

$
300 

2014

 

 
22 

2015

 

 
22 

2016

 

 
22 

2017

 

 
22 

Thereafter

 

 
13 

 

 

$
401 

 


Operating Leases (Tables)
v0.0.0.0
Operating Leases (Tables)
 12 Months Ended
Dec. 31, 2012
Operating Leases [Abstract]  
Schedule Of Future Annual Rental Payments

 

 

 

 

 

 

 

 

Years ending December 31:

 

(In thousands)

2013

 

$
300 

2014

 

 
22 

2015

 

 
22 

2016

 

 
22 

2017

 

 
22 

Thereafter

 

 
13 

 

 

$
401 

 


Operating Leases (Narrative) (Details)
v0.0.0.0
Operating Leases (Narrative) (Details) (USD $)
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Rent Expense $ 826,000 $ 806,000 $ 771,000
Minimum [Member]
      
Operating leases, renewal option term 1 year    
Maximum [Member]
      
Operating leases, renewal option term 5 years    

Operating Leases (Schedule Of Future Annual Rental Payments) (Details)
v0.0.0.0
Operating Leases (Schedule Of Future Annual Rental Payments) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Operating Leases [Abstract]  
2013 $ 300
2014 22
2015 22
2016 22
2017 22
Thereafter 13
Future minimum operating lease payments $ 401

Interim Financial Information
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Interim Financial Information
 12 Months Ended
Dec. 31, 2012
Interim Financial Information [Abstract]  
Interim Financial Information

N.   INTERIM FINANCIAL INFORMATION (UNAUDITED):

 

The following represents quarterly unaudited financial information for 2012 and 2011:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 (In thousands, except per share data)

Quarter

 

Net Sales

 

Gross Profit

 

Net Earnings

 

Earnings per Share (Basic)

 

Earnings per Share (Diluted)

2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First

 

$
96,773 

 

$
20,352 

 

$
9,344 

 

$
1.36 

 

$
1.36 

Second

 

 
117,114 

 

 
19,594 

 

 
8,703 

 

 
1.26 

 

 
1.26 

Third

 

 
116,813 

 

 
22,907 

 

 
9,401 

 

 
1.36 

 

 
1.36 

Fourth

 

 
141,790 

 

 
32,010 

 

 
11,427 

 

 
1.66 

 

 
1.66 

Total

 

$
472,490 

 

$
94,863 

 

$
38,875 

 

$
5.64 

 

$
5.64 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First

 

$
108,886 

 

$
21,954 

 

$
11,363 

 

$
1.65 

 

$
1.65 

Second

 

 
98,268 

 

 
20,665 

 

 
10,817 

 

 
1.57 

 

 
1.57 

Third

 

 
104,861 

 

 
23,657 

 

 
12,386 

 

 
1.80 

 

 
1.80 

Fourth

 

 
119,006 

 

 
27,483 

 

 
13,402 

 

 
1.96 

 

 
1.96 

Total

 

$
431,021 

 

$
93,759 

 

$
47,968 

 

$
6.98 

 

$
6.98 

 

As shown above, fourth quarter sales are significantly impacted by the holiday driven seasonality of the Housewares/Small Appliance segment.  This segment purchases inventory during the first three quarters to meet the sales demand of the fourth quarter.  The other segments are typically non-seasonal.  During the fourth quarter of 2012, the Company's provision for doubtful accounts, impairment charges, and intangible asset amortization expenses were significantly higher than historical quarterly results, and further discussion is included in Note A


Interim Financial Information (Tables)
v0.0.0.0
Interim Financial Information (Tables)
 12 Months Ended
Dec. 31, 2012
Interim Financial Information [Abstract]  
Schedule Of Quarterly Financial Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 (In thousands, except per share data)

Quarter

 

Net Sales

 

Gross Profit

 

Net Earnings

 

Earnings per Share (Basic)

 

Earnings per Share (Diluted)

2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First

 

$
96,773 

 

$
20,352 

 

$
9,344 

 

$
1.36 

 

$
1.36 

Second

 

 
117,114 

 

 
19,594 

 

 
8,703 

 

 
1.26 

 

 
1.26 

Third

 

 
116,813 

 

 
22,907 

 

 
9,401 

 

 
1.36 

 

 
1.36 

Fourth

 

 
141,790 

 

 
32,010 

 

 
11,427 

 

 
1.66 

 

 
1.66 

Total

 

$
472,490 

 

$
94,863 

 

$
38,875 

 

$
5.64 

 

$
5.64 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First

 

$
108,886 

 

$
21,954 

 

$
11,363 

 

$
1.65 

 

$
1.65 

Second

 

 
98,268 

 

 
20,665 

 

 
10,817 

 

 
1.57 

 

 
1.57 

Third

 

 
104,861 

 

 
23,657 

 

 
12,386 

 

 
1.80 

 

 
1.80 

Fourth

 

 
119,006 

 

 
27,483 

 

 
13,402 

 

 
1.96 

 

 
1.96 

Total

 

$
431,021 

 

$
93,759 

 

$
47,968 

 

$
6.98 

 

$
6.98 

 


Interim Financial Information (Schedule Of Quarterly Financial Information) (Details)
v0.0.0.0
Interim Financial Information (Schedule Of Quarterly Financial Information) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
 3 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jul. 01, 2012
Apr. 01, 2012
Dec. 31, 2011
Oct. 02, 2011
Jul. 03, 2011
Apr. 03, 2011
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Interim Financial Information [Abstract]                      
Net Sales $ 141,790 $ 116,813 $ 117,114 $ 96,773 $ 119,006 $ 104,861 $ 98,268 $ 108,886 $ 472,490 $ 431,021 $ 479,000
Gross Profit 32,010 22,907 19,594 20,352 27,483 23,657 20,665 21,954 94,863 93,759 113,574
Net Earnings $ 11,427 $ 9,401 $ 8,703 $ 9,344 $ 13,402 $ 12,386 $ 10,817 $ 11,363 $ 38,875 $ 47,968 $ 63,531
Earnings Per Share (Basic) $ 1.66 $ 1.36 $ 1.26 $ 1.36 $ 1.96 $ 1.80 $ 1.57 $ 1.65 $ 5.64 $ 6.98 $ 9.26
Earnings Per Share (Diluted) $ 1.66 $ 1.36 $ 1.26 $ 1.36 $ 1.96 $ 1.80 $ 1.57 $ 1.65 $ 5.64 $ 6.98 $ 9.26

Line Of Credit And Commercial Letters Of Credit
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Line Of Credit And Commercial Letters Of Credit
 12 Months Ended
Dec. 31, 2012
Line of Credit And Commercial Letters Of Credit [Abstract]  
Line Of Credit And Commercial Letters Of Credit

O.   LINE OF CREDIT AND COMMERCIAL LETTERS OF CREDIT

The Company maintains an unsecured line of credit for short term operating cash needs. The line of credit is renewed each year at the end of the third quarter. As of December 31, 2012 and 2011, the line of credit limit was set at $5,000,000, with $0 outstanding on both dates. The interest rate on the line of credit is reset monthly to the London Inter-Bank Offered Rate (LIBOR) plus one half of one percent.  In addition, the Company had issued commercial letters of credit totaling $3,380,000 and $1,940,000 as of December 31, 2012 and 2011, respectively, related to performance on certain customer contracts.  As of December 31, 2012, the entire balance of the letters of credit was unused. 


Line Of Credit And Commercial Letters Of Credit (Narrative) (Details)
v0.0.0.0
Line Of Credit And Commercial Letters Of Credit (Narrative) (Details) (USD $)
Dec. 31, 2012
Dec. 31, 2011
Line of Credit And Commercial Letters Of Credit [Abstract]    
Line of credit limit $ 5,000,000 $ 5,000,000
Line of credit, amount outstanding 0 0
Percentage over LIBOR 0.50%  
Letters of credit $ 3,380,000 $ 1,940,000

Business Acquisition
v0.0.0.0
Business Acquisition
 12 Months Ended
Dec. 31, 2012
Business Acquisition [Abstract]  
Business Acquisition

P.   BUSINESS ACQUISITION

On November 1, 2011, the Company purchased the assets of ALS Technologies, Inc., a small Arkansas manufacturer of less than lethal ammunition. Products include smoke and tear gas grenades, specialty impact munitions, diversionary devices and stun munitions, support accessories like launchers and gas masks, as well as training for the use of its products.  Sales for 2011, including the portion of the year prior to the purchase, were $8,046,000.  The products are sold primarily to law enforcement, corrections, and military.  The acquisition was immaterial to the Company's Consolidated Financial Statements.  The purchase price allocation included in the Company’s financial statements was finalized during 2012 upon the completion of a business valuation. During the second half of 2012, the Company began the process of relocating this operation to Perry, Florida, which is expected to be completed during the second quarter of 2013.  The cost of the relocation is expected to be immaterial to the Company’s Consolidated Financial Statements.


Business Acquisition (Narrative) (Details)
v0.0.0.0
Business Acquisition (Narrative) (Details) (USD $)
 3 Months Ended 12 Months Ended
Dec. 31, 2012
Sep. 30, 2012
Jul. 01, 2012
Apr. 01, 2012
Dec. 31, 2011
Oct. 02, 2011
Jul. 03, 2011
Apr. 03, 2011
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Business Acquisition [Line Items]                      
Net sales $ 141,790,000 $ 116,813,000 $ 117,114,000 $ 96,773,000 $ 119,006,000 $ 104,861,000 $ 98,268,000 $ 108,886,000 $ 472,490,000 $ 431,021,000 $ 479,000,000
ALS Technologies, Inc. [Member]
                      
Business Acquisition [Line Items]                      
Net sales                   $ 8,046,000  

Other
v0.0.0.0
Other
 12 Months Ended
Dec. 31, 2012
Other [Abstract]  
Other

Q.   OTHER

During 2011, the Company entered into a royalty agreement with another absorbent products company. Under the agreement, it received royalties for its trademarks, technology, know-how, and the use of equipment that embodies that technology and know-how. It also purchased and sold to the other company the requisite materials for the use of the technology.  However, because of ongoing financial issues at the other absorbent products company, sales of the requisite materials to the facility were discontinued during 2012.  During 2012 and 2011, incident to the royalty agreement, the Company recognized material sales of $598,000 and $4,874,000 (classified as Net Sales) and royalty income (included in Selling and General Expense) of $247,000 and $479,000, respectively. Further, because of the other facility’s financial difficulties, the Company reserved for all receivables from the other facility by increasing the provision for doubtful accounts by $3,887,000 during 2012.  In addition, the Company fully reserved for a note receivable of $1,592,000 and recorded impairment on equipment of $5,725,000 during the fourth quarter of 2012 (each classified as Selling and General Expense).

 

The Company has also entered into a licensing agreement with another firm that is developing certain products that would complement the assortment of products currently sold by the Housewares/Small Appliances segment.  Under the agreement, the Company has advanced the entity funds, and has agreed to advance the entity additional funds as certain goals are achieved.  In addition, the Company has also agreed to pay royalties to the entity on the commercial sales of the developed products.  As of December 31, 2012, a note receivable plus accrued interest of $3,571,000 related to the license agreement was classified as Note Receivable on the Company’s Consolidated Balance Sheet.


Other (Narrative) (Details)
v0.0.0.0
Other (Narrative) (Details) (USD $)
 3 Months Ended 12 Months Ended
Dec. 31, 2012
Dec. 31, 2012
Dec. 31, 2011
Other [Abstract]      
Material sales, related party   $ 598,000 $ 4,874,000
Royalty income, related party   247,000 479,000
Period increase of provision for doubtful accounts   3,887,000  
Reserved note receivable 1,592,000    
Equipment impairment 5,725,000    
Note receivable, related to license agreement $ 3,571,000 $ 3,571,000  

Schedule II - Valuation And Qualifying Accounts
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Schedule II - Valuation And Qualifying Accounts
 12 Months Ended
Dec. 31, 2012
Valuation and Qualifying Accounts [Abstract]  
Schedule II - Valuation And Qualifying Accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NATIONAL PRESTO INDUSTRIES, INC. AND SUBSIDIARIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended December 31, 2012, 2011 and 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Column A

 

 

Column B

 

 

Column C

 

 

Column C

 

 

Column D

 

 

Column E

Description

 

 

Balance at Beginning of Period

 

 

Additions - Charged to Costs and Expenses (A)

 

 

Additions - Charged to Other Accounts (B)

 

 

Deductions (C)

 

 

Balance at End of Period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deducted from assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for doubtful accounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2012

 

$
1,361 

 

$
4,037 

 

$
1,122 

 

$
409 

 

$
6,111 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2011

 

$
527 

 

$
1,037 

 

$

 -

 

$
203 

 

$
1,361 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2010

 

$
467 

 

$
50 

 

$

 -

 

$
(10)

 

$
527 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for doubtful note receivable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2012

 

$

 -

 

$
1,592 

 

$

 -

 

$

 -

 

$
1,592 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2011

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2010

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(A)  Amounts charged to selling and general expenses.  See Note Q to the Company's Consolidated Financial Statements for additional information.

(B)  Amounts charged to other accounts - Deferred revenue related to sales to an independent foreign manufacturing facility, which was deemed uncollectible during 2012, was reclassified to the allowance for doubtful accounts.  The Company's relationship with the foreign facility is described in Note Q to the Company's Consolidated Financial Statements.

(C)  Principally bad debts written off, net of recoveries.

 


Schedule II - Valuation And Qualifying Accounts (Details)
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Schedule II - Valuation And Qualifying Accounts (Details) (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Allowance for Doubtful Accounts [Member]
      
Valuation and Qualifying Accounts Disclosure [Line Items]      
Balance at Beginning of Period $ 1,361 $ 527 $ 467
Additions, Charged to Costs and Expenses 4,037 1,037 50
Additions, Charged to Other Accounts 1,122    
Deductions 409 203 (10)
Balance at End of Period 6,111 1,361 527
Allowance for Notes Receivable [Member]
      
Valuation and Qualifying Accounts Disclosure [Line Items]      
Additions, Charged to Costs and Expenses 1,592    
Balance at End of Period $ 1,592