Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 28, 2013 | Oct. 25, 2013 | |
Document and Entity Information | ||
Entity Registrant Name | B&G Foods, Inc. | |
Entity Central Index Key | 1278027 | |
Document Type | 10-Q | |
Document Period End Date | 28-Sep-13 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -16 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 53,445,910 | |
Document Fiscal Year Focus | 2013 | |
Document Fiscal Period Focus | Q3 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $12,299 | $19,219 |
Trade accounts receivable, net | 56,946 | 43,357 |
Inventories | 109,965 | 89,757 |
Prepaid expenses and other current assets | 6,495 | 5,326 |
Income tax receivable | 5,020 | 4,262 |
Deferred income taxes | 2,111 | 2,175 |
Total current assets | 192,836 | 164,096 |
Property, plant and equipment, net of accumulated depreciation of $110,948 and $100,625 | 108,078 | 104,746 |
Goodwill | 296,910 | 267,940 |
Other intangibles, net | 803,488 | 637,196 |
Other assets | 19,529 | 17,990 |
Total assets | 1,420,841 | 1,191,968 |
Current liabilities: | ||
Trade accounts payable | 25,369 | 25,050 |
Accrued expenses | 27,600 | 23,610 |
Current portion of long-term debt | 48,750 | 40,375 |
Dividends payable | 16,919 | 15,243 |
Total current liabilities | 118,638 | 104,278 |
Long-term debt | 815,841 | 597,314 |
Other liabilities | 4,781 | 8,038 |
Deferred income taxes | 133,416 | 121,163 |
Total liabilities | 1,072,676 | 830,793 |
Commitments and contingencies (Note 9) | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value per share. Authorized 1,000,000 shares; no shares issued or outstanding | ||
Common stock, $0.01 par value per share. Authorized 125,000,000 shares; 52,873,364 and 52,560,765 shares issued and outstanding as of September 28, 2013 and December 29, 2012 | 529 | 526 |
Additional paid-in capital | 179,965 | 226,900 |
Accumulated other comprehensive loss | -10,724 | -11,095 |
Retained earnings | 178,395 | 144,844 |
Total stockholders' equity | 348,165 | 361,175 |
Total liabilities and stockholders' equity | $1,420,841 | $1,191,968 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets | ||
Property, plant and equipment, accumulated depreciation (in dollars) | $110,948 | $100,625 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, Authorized shares | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, Authorized shares | 125,000,000 | 125,000,000 |
Common stock, shares issued | 52,873,364 | 52,560,765 |
Common stock, shares outstanding | 52,873,364 | 52,560,765 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Consolidated Statements of Operations | ||||
Net sales | $181,350 | $154,155 | $513,426 | $460,106 |
Cost of goods sold | 120,084 | 98,876 | 337,651 | 296,246 |
Gross profit | 61,266 | 55,279 | 175,775 | 163,860 |
Operating expenses: | ||||
Selling, general and administrative expenses | 21,271 | 14,937 | 55,097 | 46,206 |
Amortization expense | 2,385 | 2,022 | 6,608 | 6,067 |
Operating income | 37,610 | 38,320 | 114,070 | 111,587 |
Other expenses: | ||||
Interest expense, net | 11,097 | 11,994 | 30,900 | 35,845 |
Loss on extinguishment of debt | 2,813 | 31,291 | ||
Income before income tax expense | 23,700 | 26,326 | 51,879 | 75,742 |
Income tax expense | 8,350 | 9,429 | 18,328 | 26,041 |
Net income | $15,350 | $16,897 | $33,551 | $49,701 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 52,873,364 | 48,387,225 | 52,817,048 | 48,267,133 |
Diluted (in shares) | 53,120,392 | 48,743,162 | 52,975,079 | 48,597,165 |
Earnings per share: | ||||
Basic (in dollars per share) | $0.29 | $0.35 | $0.64 | $1.03 |
Diluted (in dollars per share) | $0.29 | $0.35 | $0.63 | $1.02 |
Cash dividends declared per share (in dollars per share) | $0.32 | $0.27 | $0.90 | $0.81 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Consolidated Statements of Comprehensive Income | ||||
Net income | $15,350 | $16,897 | $33,551 | $49,701 |
Other comprehensive income: | ||||
Foreign currency translation adjustments | 34 | 36 | -28 | 26 |
Amortization of unrecognized prior service cost and pension deferrals, net of tax | 116 | 162 | 399 | 401 |
Other comprehensive income | 150 | 198 | 371 | 427 |
Comprehensive income | $15,500 | $17,095 | $33,922 | $50,128 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
Cash flows from operating activities: | ||
Net income | $33,551 | $49,701 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 17,002 | 13,443 |
Amortization of deferred debt financing costs and bond discount | 3,318 | 3,771 |
Deferred income taxes | 12,063 | 10,967 |
Share-based compensation expense | 3,269 | 2,900 |
Loss on extinguishment of debt | 31,291 | |
Excess tax benefits from share-based compensation | -4,192 | -8,031 |
Changes in assets and liabilities, net of effects of businesses acquired: | ||
Trade accounts receivable | -9,451 | -1,648 |
Inventories | -15,969 | -22,002 |
Prepaid expenses and other current assets | -1,159 | 1,828 |
Income tax receivable | 3,434 | 7,177 |
Other assets | -223 | -63 |
Trade accounts payable | -3,463 | 4,881 |
Accrued expenses | 2,096 | -7,545 |
Other liabilities | -2,674 | -1,883 |
Net cash provided by operating activities | 68,893 | 53,496 |
Cash flows from investing activities: | ||
Capital expenditures | -8,418 | -7,660 |
Payments for acquisition of businesses | -209,905 | -150 |
Net cash used in investing activities | -218,323 | -7,810 |
Cash flows from financing activities: | ||
Repayments of long-term debt | -501,404 | -7,312 |
Proceeds from issuance of long-term debt | 700,000 | |
Repayments of borrowings under revolving credit facility | -60,000 | |
Borrowings under revolving credit facility | 65,000 | |
Dividends paid | -45,905 | -37,096 |
Excess tax benefits from share-based compensation | 4,192 | 8,031 |
Debt financing costs | -12,549 | |
Payments of tax withholding on behalf of employees for net share settlement of share-based compensation | -6,812 | -10,696 |
Net cash provided by (used in) financing activities | 142,522 | -47,073 |
Effect of exchange rate fluctuations on cash and cash equivalents | -12 | -1 |
Net decrease in cash and cash equivalents | -6,920 | -1,388 |
Cash and cash equivalents at beginning of period | 19,219 | 16,738 |
Cash and cash equivalents at end of period | 12,299 | 15,350 |
Supplemental disclosures of cash flow information: | ||
Cash interest payments | 26,110 | 38,742 |
Cash income tax payments | 2,834 | 7,896 |
Non-cash transactions: | ||
Dividends declared and not yet paid | $16,919 | $13,065 |
Nature_of_Operations
Nature of Operations | 9 Months Ended | |||||||||||||
Sep. 28, 2013 | ||||||||||||||
Nature of Operations | ||||||||||||||
Nature of Operations | (1) Nature of Operations | |||||||||||||
B&G Foods, Inc. is a holding company whose principal assets are the shares of capital stock of its subsidiaries. Unless the context requires otherwise, references in this report to “B&G Foods,” “our company,” “we,” “us” and “our” refer to B&G Foods, Inc. and its subsidiaries. Our financial statements are presented on a consolidated basis. | ||||||||||||||
We operate in a single industry segment and manufacture, sell and distribute a diverse portfolio of high-quality, shelf-stable foods across the United States, Canada and Puerto Rico. Our products include hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, wine vinegar, maple syrup, molasses, salad dressings, Mexican-style sauces, taco shells and kits, salsas, pickles, peppers, tomato-based products, puffed corn and rice snacks, nut clusters and other specialty products. Our products are marketed under many recognized brands, including Ac’cent, B&G, B&M, Baker’s Joy, Brer Rabbit, Cream of Rice, Cream of Wheat, Devonsheer, Don Pepino, Emeril’s, Grandma’s Molasses, JJ Flats, Joan of Arc, Las Palmas, Maple Grove Farms of Vermont, Molly McButter, Mrs. Dash, Old London, Original Tings, New York Style, Ortega, Pirate’s Booty, Polaner, Red Devil, Regina, Sa-són, Sclafani, Smart Puffs, Sugar Twin, Trappey’s, TrueNorth, Underwood, Vermont Maid and Wright’s. We also sell and distribute two branded household products, Static Guard and Kleen Guard. We compete in the retail grocery, food service, specialty, private label, club and mass merchandiser channels of distribution. We sell and distribute our products directly and via a network of independent brokers and distributors to supermarket chains, food service outlets, mass merchants, warehouse clubs, non-food outlets and specialty distributors. | ||||||||||||||
Acquisitions | ||||||||||||||
On October 31, 2012, we completed the acquisition of the New York Style, Old London, Devonsheer and JJ Flats brands from Chipita America, Inc. for $62.5 million in cash. We refer to this acquisition as the “New York Style and Old London acquisition.” | ||||||||||||||
On May 6, 2013, we acquired the TrueNorth brand from DeMet’s Candy Company. We refer to this acquisition as the “TrueNorth acquisition.” | ||||||||||||||
On July 8, 2013, we completed the acquisition of Pirate Brands, LLC, the maker of the Pirate’s Booty, Smarts Puffs and Original Tings brands, from affiliates of VMG Partners and Driven Capital Management, and certain other entities and individuals for a purchase price of $195.4 million in cash. We refer to this acquisition as the “Pirate Brands acquisition.” | ||||||||||||||
We have accounted for these acquisitions using the acquisition method of accounting and, accordingly, have included the assets acquired, liabilities assumed and results of operations in our consolidated financial statements from the date of acquisition. The excess of the purchase price over the fair value of identifiable net assets acquired represents goodwill. Unamortizable trademarks are deemed to have an indefinite useful life and are not amortized. Customer relationship intangibles and amortizable trademarks are amortized over 10 to 20 years. Goodwill and other intangible assets are deductible for income tax purposes. Inventory has been recorded at estimated selling price less costs of disposal and a reasonable profit, and the property, plant and equipment and other intangible assets (including trademarks and customer relationships) acquired have been recorded at fair value as determined by our management with the assistance of a third-party valuation specialist. See Note 4, “Goodwill and Other Intangible Assets.” | ||||||||||||||
The following table sets forth the allocation of the New York Style and Old London acquisition purchase price to the estimated fair value of the net assets acquired at the date of acquisition. | ||||||||||||||
New York Style and Old London Acquisition (dollars in thousands): | ||||||||||||||
Property, Plant and Equipment | $ | 42,889 | ||||||||||||
Trademarks — indefinite life intangible assets | 5,700 | |||||||||||||
Customer relationship intangibles — amortizable intangible assets | 5,100 | |||||||||||||
Goodwill | 4,963 | |||||||||||||
Inventory | 4,026 | |||||||||||||
Deferred taxes | 38 | |||||||||||||
Other working capital | (199 | ) | ||||||||||||
Total | $ | 62,517 | ||||||||||||
The following table sets forth the preliminary allocation of the Pirate Brands acquisition purchase price to the estimated fair value of the net assets acquired at the date of acquisition. The preliminary purchase price allocation may be adjusted as a result of the finalization of our purchase price allocation procedures related to accounts receivable acquired and liabilities assumed. We anticipate completing the purchase price allocation during the fourth quarter of fiscal 2013. | ||||||||||||||
Pirate Brands Acquisition (dollars in thousands): | ||||||||||||||
Trademarks — indefinite life intangible assets | $ | 152,900 | ||||||||||||
Goodwill | 28,687 | |||||||||||||
Customer relationship intangibles — amortizable intangible assets | 11,400 | |||||||||||||
Inventory | 3,298 | |||||||||||||
Other working capital | (868 | ) | ||||||||||||
Total | $ | 195,417 | ||||||||||||
Unaudited Pro Forma Summary of Operations | ||||||||||||||
The following pro forma summary of operations for the third quarter and first three quarters of 2013 and 2012 presents our operations as if the Pirate Brands acquisition had occurred as of the beginning of the first quarter of 2012. In addition to including the results of operations of the Pirate Brands acquisition, the pro forma information gives effect to the interest on additional borrowings and amortization of customer relationship intangibles. On an actual basis, Pirate Brands contributed $16.5 million of net sales for the third quarter and for the first three quarters of 2013. | ||||||||||||||
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(dollars in thousands) | ||||||||||||||
Net sales | $ | 182,353 | $ | 171,730 | $ | 555,948 | $ | 510,746 | ||||||
Net income | 15,247 | 16,227 | 32,065 | 46,079 | ||||||||||
Basic earnings per share | $ | 0.29 | $ | 0.34 | $ | 0.61 | $ | 0.95 | ||||||
Diluted earnings per share | $ | 0.29 | $ | 0.33 | $ | 0.61 | $ | 0.95 | ||||||
The pro forma information presented above does not purport to be indicative of the results that actually would have been attained if the Pirate Brands acquisition had occurred as of the beginning of the first quarter of fiscal 2012 and is not intended to be a projection of future results. | ||||||||||||||
The New York Style and Old London acquisition and the TrueNorth acquisition were not individually or in the aggregate material to our consolidated results of operations or financial position and, therefore, pro forma financial information is not presented. | ||||||||||||||
See Note 14, “Subsequent Events.” | ||||||||||||||
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 28, 2013 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies |
Fiscal Year | |
Typically, our fiscal quarters and fiscal year consist of 13 and 52 weeks, respectively, with our fiscal year ending on the Saturday closest to December 31. As a result, a 53rd week is added to our fiscal year every five or six years. In a 53-week fiscal year our fourth fiscal quarter contains 14 weeks. Our fiscal years ending December 28, 2013 (fiscal 2013) and December 29, 2012 (fiscal 2012) each contain 52 weeks. Each quarter of fiscal 2013 and 2012 contains 13 weeks. | |
Basis of Presentation | |
The accompanying unaudited consolidated interim financial statements for the thirteen and thirty-nine week periods ended September 28, 2013 (third quarter and first three quarters of 2013) and September 29, 2012 (third quarter and first three quarters of 2012) have been prepared by our company in accordance with accounting principles generally accepted in the United States of America pursuant to the rules and regulations of the Securities and Exchange Commission (SEC), and include the accounts of B&G Foods, Inc. and its subsidiaries. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations. However, our management believes, to the best of their knowledge, that the disclosures herein are adequate to make the information presented not misleading. All intercompany balances and transactions have been eliminated. The accompanying unaudited consolidated interim financial statements contain all adjustments (consisting only of normal and recurring adjustments) that are, in the opinion of management, necessary to present fairly our consolidated financial position as of September 28, 2013, the results of our operations and comprehensive income for the third quarter and first three quarters of 2013 and 2012, and cash flows for the first three quarters of 2013 and 2012. Our results of operations for the third quarter and first three quarters of 2013 are not necessarily indicative of the results to be expected for the full year. We have evaluated subsequent events for disclosure through the date of issuance of the accompanying unaudited consolidated interim financial statements. The accompanying unaudited consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements and notes for fiscal 2012 included in our Annual Report on Form 10-K for fiscal 2012 filed with the SEC on February 26, 2013. | |
Use of Estimates | |
The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires our management to make a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Some of the more significant estimates and assumptions made by management involve trade and consumer promotion expenses; allowances for excess, obsolete and unsaleable inventories; pension benefits; acquisition accounting allocations; the recoverability of goodwill, other intangible assets, property, plant and equipment and deferred tax assets; the determination of the useful life of customer relationship and amortizable trademark intangibles; and the accounting for share-based compensation expense. Actual results could differ significantly from these estimates and assumptions. | |
Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors that management believes to be reasonable under the circumstances, including the current economic environment. We adjust such estimates and assumptions when facts and circumstances dictate. Volatility in the credit and equity markets can increase the uncertainty inherent in such estimates and assumptions. | |
Recently Issued Accounting Standards | |
In February 2013, the Financial Accounting Standards Board (FASB) issued an accounting standards update relating to the disclosure of items reclassified out of accumulated other comprehensive income (AOCI). The update requires that for those items that are reclassified out of AOCI and into net income in their entirety, the effect of the reclassification on each affected net income line item be disclosed. For AOCI reclassification items that are not reclassified in their entirety into net income, a cross reference must be made to other required disclosures. The update is effective for fiscal 2013 and interim periods within fiscal 2013, and accordingly, we adopted it prospectively beginning with the first quarter of 2013. The update impacts presentation and disclosure only, and therefore adoption did not have an impact on our consolidated financial position, results of operations or liquidity. See Note 7, “Accumulated Other Comprehensive Loss.” | |
Inventories
Inventories | 9 Months Ended | |||||||
Sep. 28, 2013 | ||||||||
Inventories | ||||||||
Inventories | (3) Inventories | |||||||
Inventories are stated at the lower of cost or market and include direct material, direct labor, overhead, warehousing and product transfer costs. Cost is determined using the first-in, first-out and average cost methods. Inventories have been reduced by an allowance for excess, obsolete and unsaleable inventories. The allowance is an estimate based on our management’s review of inventories on hand compared to estimated future usage and sales. | ||||||||
Inventories consist of the following, as of the dates indicated (in thousands): | ||||||||
September 28, 2013 | December 29, 2012 | |||||||
Raw materials and packaging | $ | 36,034 | $ | 19,828 | ||||
Work in process | — | 435 | ||||||
Finished goods | 73,931 | 69,494 | ||||||
Total | $ | 109,965 | $ | 89,757 | ||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 9 Months Ended | |||||||||||||||||||
Sep. 28, 2013 | ||||||||||||||||||||
Goodwill and Other Intangible Assets | ||||||||||||||||||||
Goodwill and Other Intangible Assets | (4) Goodwill and Other Intangible Assets | |||||||||||||||||||
The carrying amounts of goodwill and other intangible assets, as of the dates indicated, consist of the following (in thousands): | ||||||||||||||||||||
As of September 28, 2013 | As of December 29, 2012 | |||||||||||||||||||
Gross Carrying | Accumulated | Net Carrying | Gross Carrying | Accumulated | Net Carrying | |||||||||||||||
Amount | Amortization | Amount | Amount | Amortization | Amount | |||||||||||||||
Amortizable Intangible Assets | ||||||||||||||||||||
Trademarks | $ | 6,800 | $ | 189 | $ | 6,611 | $ | — | $ | — | $ | — | ||||||||
Customer relationships | 178,540 | 46,663 | 131,877 | 165,340 | 40,244 | 125,096 | ||||||||||||||
$ | 185,340 | $ | 46,852 | $ | 138,488 | $ | 165,340 | $ | 40,244 | $ | 125,096 | |||||||||
Unamortizable Intangible Assets | ||||||||||||||||||||
Goodwill | $ | 296,910 | $ | 267,940 | ||||||||||||||||
Trademarks | $ | 665,000 | $ | 512,100 | ||||||||||||||||
Note: The increases in carrying amounts are attributable to both the TrueNorth acquisition and Pirate Brands acquisition. | ||||||||||||||||||||
Amortization associated with trademarks for the third quarter and first three quarters of 2013 was $0.1 and $0.2 million, respectively, and is recorded in operating expenses. We did not have amortization expense associated with trademarks for the third quarter or first three quarters of 2012. We expect to recognize an additional $0.1 million of amortization expense associated with our amortizable trademarks during the remainder of fiscal 2013, and thereafter $0.5 million per year for each of the next four fiscal years. | ||||||||||||||||||||
Amortization expense associated with customer relationship intangibles for the third quarter and first three quarters of 2013 was $2.3 million and $6.4 million, respectively, and is recorded in operating expenses. Amortization expense associated with customer relationship and other intangible assets for the third quarter and first three quarters of 2012 was $2.0 million and $6.1 million, respectively, and is recorded in operating expenses. We expect to recognize an additional $2.2 million of amortization expense associated with our customer relationship intangibles during the remainder of fiscal 2013, and thereafter $9.0 million per year for each of the next four fiscal years. | ||||||||||||||||||||
Longterm_Debt
Long-term Debt | 9 Months Ended | |||||||
Sep. 28, 2013 | ||||||||
Long-term Debt | ||||||||
Long-term Debt | (5) Long-term Debt | |||||||
Long-term debt consists of the following, as of the dates indicated (in thousands): | ||||||||
September 28, 2013 | December 29, 2012 | |||||||
Senior secured credit agreement: | ||||||||
Revolving credit facility | $ | 30,000 | $ | 25,000 | ||||
Tranche A term loans due 2016 | 135,000 | 144,375 | ||||||
Tranche B term loans due 2018 | — | 223,313 | ||||||
7.625% senior notes due 2018 | — | 248,500 | ||||||
4.625% senior notes due 2021 | 700,000 | — | ||||||
Unamortized discount | (409 | ) | (3,499 | ) | ||||
Total long-term debt, net of unamortized discount | 864,591 | 637,689 | ||||||
Current portion of long-term debt | (48,750 | ) | (40,375 | ) | ||||
Long-term debt, net of unamortized discount and excluding current portion | $ | 815,841 | $ | 597,314 | ||||
As of September 28, 2013, the aggregate contractual maturities of long-term debt are as follows (in thousands): | ||||||||
Years ending December: | ||||||||
2013 | $ | 3,750 | ||||||
2014 | 26,250 | |||||||
2015 | 22,500 | |||||||
2016* | 112,500 | |||||||
2017 | — | |||||||
Thereafter | 700,000 | |||||||
Total | $ | 865,000 | ||||||
* As of the date of issuance of the accompanying unaudited consolidated interim financial statements we have $70.0 million of revolving loans outstanding. Included in fiscal 2016 is $30.0 million of revolving loans that were outstanding as of September 28, 2013. The revolving loans mature in 2016. However, because we expect to reduce our revolving loan borrowings by at least $30.0 million during the remainder of 2013, $30.0 million is reflected in the accompanying unaudited interim consolidated balance sheet within current portion of long-term debt. | ||||||||
Senior Secured Credit Agreement. At September 28, 2013, $135.0 million of tranche A term loans were outstanding and $30.0 million of revolving loans were outstanding under our senior secured credit agreement. We used a portion of the proceeds of the issuance of the 4.625% senior notes described below to repay all $222.2 million of tranche B term loans then outstanding on June 4, 2013. | ||||||||
On July 3, 2013, we amended our credit agreement. The amendment, among other things: (i) increased the revolving credit facility commitment of our lenders from $200 million to $300 million; and (ii) increased the maximum permissible consolidated leverage ratio from 6.00 to 1.00 to 7.00 to 1.00 for the second quarter of 2013 through the fourth quarter of 2014; 6.75 to 1.00 for the first quarter of 2015 through the fourth quarter of 2015; and 6.50 to 1.00 for the first quarter of 2016 and thereafter. At September 28, 2013, the available borrowing capacity under our revolving credit facility, net of outstanding letters of credit of $0.5 million, was $269.5 million. Proceeds of the revolving credit facility are restricted for use solely for general corporate purposes and acquisitions of targets in the same or a similar line of business as our company, subject to specified criteria. We are required to pay a commitment fee of 0.50% per annum on the unused portion of the revolving credit facility. The maximum letter of credit capacity under the revolving credit facility is $50.0 million, with a fronting fee of 0.25% per annum for all outstanding letters of credit and a letter of credit fee equal to the applicable margin for revolving loans that are Eurodollar (LIBOR) loans. | ||||||||
The tranche A term loans are subject to principal amortization. $5.6 million was due and paid in fiscal 2012. $13.1 million is due and payable in fiscal 2013, of which $9.4 million has been paid to date, $26.3 million is due and payable in fiscal 2014 and $22.5 million is due and payable in fiscal 2015. The balance of all borrowings under the tranche A term loan facility, or $82.5 million, is due and payable at maturity on November 30, 2016. The revolving credit facility matures on November 30, 2016. | ||||||||
We may prepay the tranche A term loans or permanently reduce the revolving credit facility commitment under the credit agreement at any time without premium or penalty (other than customary breakage costs with respect to the early termination of LIBOR loans). Subject to certain exceptions, the credit agreement provides for mandatory prepayment upon certain asset dispositions and issuances of subsidiary securities. The credit agreement is also subject to mandatory annual prepayments if our senior secured leverage (defined as the ratio of our consolidated senior secured debt, as of the last day of any period of four consecutive fiscal quarters to our adjusted EBITDA for such period) exceeds certain ratios as follows: 50% of our adjusted excess cash flow (as defined in the credit agreement and which takes into account certain dividend payments and other adjustments) if our senior secured leverage ratio is greater than or equal to 3.00 to 1.00 (with step-downs to 25% and 0% if our senior secured leverage ratio is less than 3.00 to 1.00 and 2.50 to 1.00, respectively). | ||||||||
Interest under the revolving credit facility, including any outstanding letters of credit, and under the tranche A term loan facility, is determined based on alternative rates that we may choose in accordance with the credit agreement, including a base rate per annum plus an applicable margin ranging from 1.50% to 2.00%, and LIBOR plus an applicable margin ranging from 2.50% to 3.00%, in each case depending on our consolidated leverage ratio. At the end of the third quarter of 2013, the tranche A term loan interest rate was approximately 3.18%. | ||||||||
Our obligations under the credit agreement are jointly and severally and fully and unconditionally guaranteed on a senior basis by all of our existing and certain future domestic subsidiaries. The credit agreement is secured by substantially all of our and our domestic subsidiaries’ assets except our and our domestic subsidiaries’ real property. The credit agreement contains customary restrictive covenants, subject to certain permitted amounts and exceptions, including covenants limiting our ability to incur additional indebtedness, pay dividends and make other restricted payments, repurchase shares of our outstanding stock and create certain liens. | ||||||||
The credit agreement also contains certain financial maintenance covenants, which, among other things, specify maximum capital expenditure limits, a maximum consolidated leverage ratio and a minimum interest coverage ratio, each ratio as defined in the credit agreement. Our consolidated leverage ratio (defined as the ratio of our consolidated total debt, as of the last day of any period of four consecutive fiscal quarters to our adjusted EBITDA for such period) may not exceed 7.00 to 1.00 for the second quarter of 2013 through the fourth quarter of 2014; 6.75 to 1.00 for the first quarter of 2015 through the fourth quarter of 2015; and 6.50 to 1.00 for the first quarter of 2016 and thereafter. We are also required to maintain a consolidated interest coverage ratio of at least 1.75 to 1.00 as of the last day of any period of four consecutive fiscal quarters. As of September 28, 2013, we were in compliance with all of the covenants in the credit agreement. | ||||||||
The credit agreement also provides for an incremental term loan facility, pursuant to which we may request that the lenders under the credit agreement, and potentially other lenders, provide incremental term loans on terms substantially consistent with those provided under the credit agreement. Among other things, the utilization of the incremental facility is conditioned on our ability to meet a maximum senior secured leverage ratio of 4.00 to 1.00, and a sufficient number of lenders or new lenders agreeing to participate in the facility. | ||||||||
4.625% Senior Notes due 2021. On June 4, 2013, we issued $700.00 million aggregate principal amount of 4.625% senior notes due 2021 at a price to the public of 100% of their face value. Interest on the 4.625% senior notes is payable on June 1 and December 1 of each year, commencing December 1, 2013. The 4.625% senior notes will mature on June 1, 2021, unless earlier retired or redeemed as described below. | ||||||||
We used the net proceeds from the issuance of the 4.625% senior notes to purchase or redeem all $248.5 million principal amount of our then existing 7.625% senior notes due 2018, to repay $222.2 million principal amount of tranche B term loans and approximately $40.0 million principal amount of revolving loans under our credit agreement, and to pay related premiums, fees and expenses. We used the remaining net proceeds for the Pirate Brands acquisition. | ||||||||
On or after June 1, 2016, we may redeem some or all of the 4.625% senior notes at a redemption price of 103.469% beginning June 1, 2016 and thereafter at prices declining annually to 100% on or after June 1, 2019, in each case plus accrued and unpaid interest to the date of redemption. We may redeem up to 35% of the aggregate principal amount of the 4.625% senior notes prior to June 1, 2016 with the net proceeds from certain equity offerings at a redemption price of 104.625% plus accrued and unpaid interest to the date of redemption. We may also redeem some or all of the 4.625% senior notes at any time prior to June 1, 2016 at a redemption price equal to the make-whole amount set forth in the indenture governing the 4.625% senior notes. In addition, if we undergo a change of control or upon certain asset sales, we may be required to offer to repurchase the 4.625% senior notes at the repurchase price set forth in the indenture plus accrued and unpaid interest to the date of repurchase. | ||||||||
We may also, from time to time, seek to retire the 4.625% senior notes through cash repurchases of the 4.625% senior notes and/or exchanges of the 4.625% senior notes for equity securities, in open market purchases, privately negotiated transactions or otherwise. Such repurchases or exchanges, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved may be material. | ||||||||
Our obligations under the 4.625% senior notes are jointly and severally and fully and unconditionally guaranteed on a senior basis by all of our existing and certain future domestic subsidiaries. The 4.625% senior notes and the subsidiary guarantees are our and the guarantors’ general unsecured obligations and are effectively junior in right of payment to all of our and the guarantors’ secured indebtedness and to all existing and future indebtedness and other liabilities of our non-guarantor subsidiaries; are pari passu in right of payment to all of our and the guarantors’ existing and future unsecured senior debt; and are senior in right of payment to all of our and the guarantors’ future subordinated debt. Our foreign subsidiaries are not guarantors, and any future foreign or partially owned domestic subsidiaries will not be guarantors, of the 4.625% senior notes. | ||||||||
The indenture contains covenants with respect to us and the guarantors and restricts the incurrence of additional indebtedness and the issuance of capital stock; the payment of dividends or distributions on, and redemption of, capital stock; a number of other restricted payments, including certain investments; creation of specified liens, certain sale-leaseback transactions and sales of certain specified assets; fundamental changes, including consolidation, mergers and transfers of all or substantially all of our assets; and specified transactions with affiliates. Each of the covenants is subject to a number of important exceptions and qualifications. As of September 28, 2013, we were in compliance with all of the covenants in the indenture governing the 4.625% senior notes. | ||||||||
7.625% Senior Notes due 2018. In June 2013, we repurchased $218.3 million aggregate principal amount of our outstanding 7.625% senior notes due 2018 with a portion of the proceeds of our public offering of 4.625% senior notes at a weighted average repurchase price of 108.09% of such principal amount plus accrued and unpaid interest to the date of repurchase, and set aside sufficient proceeds of the offering to redeem the remaining 7.625% senior notes. In July 2013, we redeemed all $30.2 million aggregate principal amount of 7.625% senior notes that remained outstanding as of such date at a redemption price of 107.499% of such principal amount, plus accrued and unpaid interest to the date of redemption. | ||||||||
Subsidiary Guarantees. We have no assets or operations independent of our direct and indirect subsidiaries. All of our present domestic subsidiaries jointly and severally and fully and unconditionally guarantee our long-term debt, and management has determined that our Canadian subsidiaries, which are our only subsidiaries that are not guarantors of our long-term debt, are “minor subsidiaries” as that term is used in Rule 3-10 of Regulation S-X promulgated by the SEC. There are no significant restrictions on our ability and the ability of our subsidiaries to obtain funds from our respective subsidiaries by dividend or loan. Consequently, separate financial statements have not been presented for our subsidiaries because management has determined that they would not be material to investors. | ||||||||
Deferred Debt Financing Costs. During the third quarter of 2013, we wrote-off and expensed $0.4 million of deferred debt financing costs relating to the repayment of $30.2 million aggregate principal amount of our 7.625% senior notes. During the third quarter of 2013, we also capitalized $0.3 million of debt financing costs in connection with an amendment to our credit facility, which will be amortized over the remainder of the five year scheduled term of our revolving credit facility. During the second quarter of 2013, we wrote-off and expensed $4.9 million and $3.0 million of deferred debt financing costs relating to the repayment of $222.2 million aggregate principal amount of our tranche B term loans and the repurchase of $218.3 million aggregate principal amount of our 7.625% senior notes. During the second quarter of 2013, we also capitalized $12.2 million of debt financing costs, which will be amortized over the eight year scheduled term of the 4.625% senior notes. As of September 28, 2013 and December 29, 2012 we had net deferred debt financing costs of $18.4 million and $17.5 million, respectively, included in other assets in the accompanying consolidated balance sheets. | ||||||||
Loss on Extinguishment of Debt. During the third quarter of 2013, we incurred a loss on extinguishment of debt of $2.8 million in connection with the repayment of $30.2 million aggregate principal amount of our 7.625% notes. The loss on extinguishment includes the repurchase premium and other expenses of $2.3 million, the write-off of deferred debt financing costs of $0.4 million and the write-off of unamortized discount of $0.1 million. During the second quarter of 2013, we incurred a loss on extinguishment of debt of $28.4 million in connection with the repayment of $222.2 million aggregate principal amount of tranche B term loans and the repurchase of $218.3 million aggregate principal amount of our 7.625% senior notes. The loss on extinguishment includes the repurchase premium and other expenses of $17.9 million, the write-off of deferred debt financing costs of $7.9 million and the write-off of unamortized discount of $2.6 million. | ||||||||
Accrued Interest. At September 28, 2013 and December 29, 2012 accrued interest of $11.3 million and $9.9 million, respectively, is included in accrued expenses in the accompanying consolidated balance sheets. | ||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||
Sep. 28, 2013 | ||||||||||
Fair Value Measurements | ||||||||||
Fair Value Measurements | (6) Fair Value Measurements | |||||||||
The authoritative accounting literature relating to fair value measurements defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The accounting literature outlines a valuation framework and creates a fair value hierarchy in order to increase the consistency and comparability of fair value measurements and the related disclosures. Under generally accepted accounting principles, certain assets and liabilities must be measured at fair value, and the accounting literature details the disclosures that are required for items measured at fair value. | ||||||||||
Financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy under the accounting literature. The three levels are as follows: | ||||||||||
Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. | ||||||||||
Level 2—Observable inputs other than Level 1 quoted prices, such as quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value driver is observable for the asset or liability, either directly or indirectly. | ||||||||||
Level 3—Unobservable inputs that reflect our assumptions about the assumptions that market participants would use in pricing the asset or liability. | ||||||||||
Cash and cash equivalents, trade accounts receivable, income tax receivable, trade accounts payable, accrued expenses and dividends payable are reflected in the consolidated balance sheets at carrying value, which approximates fair value due to the short-term nature of these instruments. | ||||||||||
The carrying values and fair values of our revolving credit loan borrowings, term loan borrowings and senior notes as of September 28, 2013 and December 29, 2012 are as follows (in thousands): | ||||||||||
September 28, 2013 | December 29, 2012 | |||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||
Revolving Credit Loans | 30,000 | 30,000 | -1 | 25,000 | 25,000 | -1 | ||||
Tranche A Term Loans due 2016 | 134,591 | -2 | 135,000 | -1 | 143,830 | -2 | 144,375 | -1 | ||
Tranche B Term Loans due 2018 | — | — | 221,504 | -2 | 226,662 | -1 | ||||
7.625% Senior Notes due 2018 | — | — | 247,355 | -2 | 269,001 | -3 | ||||
4.625% Senior Notes due 2021 | 700,000 | 668,500 | -3 | — | — | |||||
(1) Fair values are estimated based on Level 2 inputs, which were quoted prices for identical or similar instruments in markets that are not active. | ||||||||||
(2) The carrying values of the tranche A term loans, tranche B term loans and 7.625% senior notes are net of discount. At September 28, 2013, the face amount of the tranche A term loans was $135.0 million. At December 29, 2012, the face amounts of the tranche A term loans, tranche B term loans and 7.625% senior notes were $144.4 million, $223.3 million and $248.5 million, respectively. | ||||||||||
(3) Fair values are estimated based on quoted market prices. | ||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 9 Months Ended | ||||||||||
Sep. 28, 2013 | |||||||||||
Accumulated Other Comprehensive Loss | |||||||||||
Accumulated Other Comprehensive Loss | (7) Accumulated Other Comprehensive Loss | ||||||||||
The reclassification from accumulated other comprehensive loss for the third quarter and first three quarters of 2013 are as follows (in thousands): | |||||||||||
Amount Reclassified From AOCL | |||||||||||
Details about AOCL Components | Thirteen Weeks | Thirty-Nine | Affected Line Item in | ||||||||
Ended | Weeks Ended | the Statement Where | |||||||||
September 28, | September 28, | Net Income (loss) is | |||||||||
2013 | 2013 | Presented | |||||||||
Defined benefit pension plan items | |||||||||||
Amortization of prior service cost | $ | 11 | $ | 33 | See (1) below | ||||||
Amortization of unrecognized loss | 195 | 619 | See (1) below | ||||||||
206 | 652 | Total before tax | |||||||||
(90 | ) | (253 | ) | Income tax expense | |||||||
Total reclassification | $ | 116 | $ | 399 | Net of tax | ||||||
(1) These items are included in the computation of net periodic pension cost. See Note 8, “Pension Benefits” for additional information. | |||||||||||
Changes in accumulated other comprehensive loss as of September 28, 2013 is as follows (in thousands): | |||||||||||
Defined Benefit | Foreign | Total | |||||||||
Pension Plan | Currency | ||||||||||
Items | Translation | ||||||||||
Adjustments | |||||||||||
Beginning balance | $ | (11,036 | ) | $ | (59 | ) | $ | (11,095 | ) | ||
Other comprehensive loss before reclassifications | — | (28 | ) | (28 | ) | ||||||
Amounts reclassified from AOCL | 399 | — | 399 | ||||||||
Net current period other comprehensive income (loss) | 399 | (28 | ) | 371 | |||||||
Ending balance | $ | (10,637 | ) | $ | (87 | ) | $ | (10,724 | ) | ||
Pension_Benefits
Pension Benefits | 9 Months Ended | |||||||||||||
Sep. 28, 2013 | ||||||||||||||
Pension Benefits | ||||||||||||||
Pension Benefits | (8) Pension Benefits | |||||||||||||
Company Sponsored Defined Benefit Pension Plans. Net periodic pension costs for company sponsored defined benefit pension plans for the third quarter and first three quarters of 2013 and 2012 include the following components (in thousands): | ||||||||||||||
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Service cost—benefits earned during the period | $ | 792 | $ | 602 | $ | 2,493 | $ | 1,790 | ||||||
Interest cost on projected benefit obligation | 528 | 512 | 1,583 | 1,524 | ||||||||||
Expected return on plan assets | (913 | ) | (734 | ) | (2,722 | ) | (2,184 | ) | ||||||
Amortization of unrecognized prior service cost | 11 | 11 | 33 | 33 | ||||||||||
Amortization of unrecognized loss | 195 | 244 | 619 | 678 | ||||||||||
Net periodic pension cost | $ | 613 | $ | 635 | $ | 2,006 | $ | 1,841 | ||||||
During the first three quarters of 2013, we made $4.8 million of defined benefit pension plan contributions. We do not plan to make additional contributions during the remainder of fiscal 2013. | ||||||||||||||
Multi-Employer Defined Benefit Pension Plan. We also contribute to the Bakery and Confectionary Union and Industry International Pension Fund (EIN 52-6118572, Plan No. 001), a multi-employer defined benefit pension plan, sponsored by the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union (BCTGM). The plan provides multiple plan benefits with corresponding contribution rates that are collectively bargained between participating employers and their affiliated BCTGM local unions. The collective bargaining agreement for our Portland, Maine employees participating in the plan expires on April 25, 2015. | ||||||||||||||
In April 2012, we were notified that for the plan year ended December 31, 2011, the plan was not in endangered or critical status as of the most recent annual period, no surcharge was imposed at that time, and the plan was classified in the Green Zone. We were also notified that for the plan year beginning January 1, 2012, the plan was in critical status and classified in the Red Zone. As of the date of issuance of the accompanying unaudited consolidated interim financial statements, the plan remains in critical status. The law requires that all contributing employers pay to the plan a surcharge to help correct the plan’s financial situation. The amount of the surcharge is equal to a percentage of the amount an employer is otherwise required to contribute to the plan under the applicable collective bargaining agreement. A 5% surcharge payable on hours worked on and after June 1, 2012 until December 31, 2012 was charged for plan year 2012, the initial critical year. A 10% surcharge payable on hours worked on and after January 1, 2013 will be applicable for each succeeding plan year that the plan is in critical status until we agree to a collective bargaining agreement that implements a rehabilitation plan. We made contributions to the plan of $1.0 million for fiscal 2012. These contributions represented less than five percent of total contributions made to the plan. In fiscal 2012, we paid less than $0.1 million in surcharges and expect to pay surcharges of less than $0.1 million in fiscal 2013 assuming consistent hours are worked. | ||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||
Sep. 28, 2013 | |||||
Commitments and Contingencies | |||||
Commitments and Contingencies | (9) Commitments and Contingencies | ||||
Operating Leases. As of September 28, 2013, future minimum lease payments under non-cancelable operating leases in effect at quarter-end (with initial lease terms in excess of one year) were as follows (in thousands): | |||||
Fiscal year ending: | Third Parties | ||||
2013 | $ | 1,366 | |||
2014 | 3,500 | ||||
2015 | 3,025 | ||||
2016 | 3,066 | ||||
2017 | 720 | ||||
Thereafter | 1,606 | ||||
Total | $ | 13,283 | |||
Legal Proceedings. We are from time to time involved in various claims and legal actions arising in the ordinary course of business, including proceedings involving product liability claims, worker’s compensation and other employee claims, and tort and other general liability claims, as well as trademark, copyright, patent infringement and related claims and legal actions. In the opinion of our management, the ultimate disposition of any currently pending claims or actions will not have a material adverse effect on our consolidated financial position, results of operations or liquidity. | |||||
Pirate Brands has been named as a defendant in six duplicative putative class actions, two of which were filed prior to our ownership of Pirate Brands. The cases allege that Pirate Brands’ products are improperly labeled as “natural” because they contain “genetically modified” and processed ingredients. The first case was filed in December 2012 in New York. A duplicative case was then filed in February 2013 in California, which has been transferred to New York. Identical actions were then filed in July 2013 in Florida, Washington, California and New Jersey. Pirate Brands was successful in its efforts to have all six cases transferred to New York to be consolidated into a single proceeding. No discovery has commenced in any of the cases, and a motion to dismiss the claims is pending. Based upon information currently available, we do not believe the ultimate resolution of these actions will have a material adverse effect on B&G Foods’ consolidated financial position, results of operations or liquidity. | |||||
Environmental. We are subject to environmental laws and regulations in the normal course of business. We did not make any material expenditures during the first three quarters of 2013 or 2012 in order to comply with environmental laws and regulations. Based on our experience to date, management believes that the future cost of compliance with existing environmental laws and regulations (and liability for any known environmental conditions) will not have a material adverse effect on our consolidated financial position, results of operations or liquidity. However, we cannot predict what environmental or health and safety legislation or regulations will be enacted in the future or how existing or future laws or regulations will be enforced, administered or interpreted, nor can we predict the amount of future expenditures that may be required in order to comply with such environmental or health and safety laws or regulations or to respond to such environmental claims. | |||||
Collective Bargaining Agreements. As of September 28, 2013, approximately 334 of our 1,012 employees, or 33.0%, were covered by collective bargaining agreements, of which 48 were covered by a collective bargaining agreement expiring within the next 12 months. Our collective bargaining agreement with the Local 863 International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America that covers certain employees at our Roseland, New Jersey manufacturing facility is scheduled to expire on March 31, 2014. We expect to begin negotiations for a new collective bargaining agreement during the fourth quarter of 2013 or the first quarter of 2014. While we believe that our relations with our union employees are good, we cannot be certain that we will be able to negotiate the Roseland, New Jersey collective bargaining agreement on terms satisfactory to us, or at all, and without production interruptions, including labor stoppages. At this time, however, management does not expect the outcome of these negotiations to have a material adverse effect on our business, financial condition or results of operations. None of our other collective bargaining agreements is scheduled to expire within one year. | |||||
Severance and Change of Control Agreements. We have employment agreements with each of our seven executive officers. The agreements generally continue until terminated by the executive or by us, and provide for severance payments under certain circumstances, including termination by us without cause (as defined in the agreements) or as a result of the employee’s death or disability, or termination by us or a deemed termination upon a change of control (as defined in the agreements). Severance benefits include payments for salary continuation, continuation of health care and insurance benefits, present value of additional pension credits and, in the case of a change of control, accelerated vesting under compensation plans and potential excise tax liability and gross up payments. | |||||
Earnings_per_Share
Earnings per Share | 9 Months Ended | |||||||||
Sep. 28, 2013 | ||||||||||
Earnings per Share | ||||||||||
Earnings per Share | (10) Earnings per Share | |||||||||
Basic earnings per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding. Diluted earnings per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding plus all additional shares of common stock that would have been outstanding if potentially dilutive shares of common stock related to performance shares that may be earned under long-term incentive awards had been issued as of the beginning of the period using the treasury stock method. | ||||||||||
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||
September 28, | September 29, | September 28, | September 29, | |||||||
2013 | 2012 | 2013 | 2012 | |||||||
Weighted average shares outstanding: | ||||||||||
Basic | 52,873,364 | 48,387,225 | 52,817,048 | 48,267,133 | ||||||
Net effect of potentially dilutive share-based compensation awards | 247,028 | 355,937 | 158,031 | 330,032 | ||||||
Diluted | 53,120,392 | 48,743,162 | 52,975,079 | 48,597,165 | ||||||
Business_and_Credit_Concentrat
Business and Credit Concentrations and Geographic Information | 9 Months Ended |
Sep. 28, 2013 | |
Business and Credit Concentrations and Geographic Information | |
Business and Credit Concentrations and Geographic Information | (11) Business and Credit Concentrations and Geographic Information |
Our exposure to credit loss in the event of non-payment of accounts receivable by customers is estimated in the amount of the allowance for doubtful accounts. We perform ongoing credit evaluations of the financial condition of our customers. Our top ten customers accounted for approximately 48.9% and 51.3% of consolidated net sales for the first three quarters of 2013 and 2012, respectively. Our top ten customers accounted for approximately 48.2% and 50.2% of our receivables as of September 28, 2013 and December 29, 2012, respectively. Other than Wal-Mart, which accounted for 18.6% and 19.8% of our consolidated net sales for the first three quarters of 2013 and 2012, respectively, no single customer accounted for more than 10.0% of our consolidated net sales for the first three quarters of 2013 or 2012. Other than Wal-Mart, which accounted for 13.3% and 14.9% of our consolidated receivables as of September 28, 2013 and December 29, 2012, respectively, no single customer accounted for more than 10.0% of our consolidated receivables. As of September 28, 2013, we do not believe we have any significant concentration of credit risk with respect to our trade accounts receivable with any single customer whose failure or nonperformance would materially affect our results other than as described above with respect to Wal-Mart. | |
During the first three quarters of 2013 and 2012, our sales to foreign countries represented approximately 3.2% and 2.4%, of net sales. Our foreign sales are primarily to customers in Canada. | |
ShareBased_Payments
Share-Based Payments | 9 Months Ended | |||||||||||||
Sep. 28, 2013 | ||||||||||||||
Share-Based Payments | ||||||||||||||
Share-Based Payments | (12) Share-Based Payments | |||||||||||||
Our company makes annual grants of performance share long-term incentive awards to our executive officers and certain other members of senior management. The performance share long-term incentive awards entitle the participants to earn shares of common stock upon the attainment of certain performance goals. In addition, our non-employee directors receive annual equity grants as part of their non-employee director compensation. | ||||||||||||||
The following table sets forth the compensation expense recognized for share-based payments (performance share long-term incentive awards, non-employee director stock grants and other share based compensation) during the third quarter and first three quarters of 2013 and 2012 and where that expense is reflected in our consolidated statements of operations (in thousands): | ||||||||||||||
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||
Consolidated Statements of Operations Location | September 28, | September 29, | September 28, | September 29, | ||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Compensation expense included in cost of goods sold | $ | 282 | $ | 199 | $ | 716 | $ | 567 | ||||||
Compensation expense included in selling, general and administrative expenses | 827 | 672 | 2,553 | 2,333 | ||||||||||
Total compensation expense for share-based payments | $ | 1,109 | $ | 871 | $ | 3,269 | $ | 2,900 | ||||||
As of September 28, 2013, there was $4.3 million of unrecognized compensation expense related to performance share long-term incentive awards, which is expected to be recognized over the next 2.25 years. | ||||||||||||||
The following table details the activity in our non-vested performance share long-term incentive awards for the first three quarters of 2013: | ||||||||||||||
Number of | Weighted Average | |||||||||||||
Performance Shares | Grant Date Fair | |||||||||||||
Value (per share)(2) | ||||||||||||||
Beginning of fiscal 2013 | 1,012,729 | -1 | $ | 10.83 | ||||||||||
Granted | 116,048 | -1 | $ | 28.24 | ||||||||||
Vested | (512,885 | ) | $ | 7.29 | ||||||||||
Forfeited | (2,004 | ) | $ | 20.34 | ||||||||||
End of first three quarters of 2013 | 613,888 | -1 | $ | 17.04 | ||||||||||
(1) Solely for purposes of this table, the number of performance shares is based on the participants earning the maximum number of performance shares (i.e., 200% or 300% of the target number of performance shares). | ||||||||||||||
(2) The fair value of the awards was determined based upon the closing price of our common stock on the applicable measurement dates (i.e., the deemed grant dates for accounting purposes) reduced by the present value of expected dividends using the risk-free interest-rate as the award holders are not entitled to dividends or dividend equivalents during the vesting period. | ||||||||||||||
The following table details the number of shares of common stock issued by our company during the third quarter and first three quarters of 2013 and 2012 upon the vesting of performance share long-term incentive awards and for non-employee director annual equity grants and other share based compensation: | ||||||||||||||
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Number of performance shares vested | — | — | 512,885 | 1,124,205 | ||||||||||
Shares withheld to fund statutory minimum tax withholding | — | — | 214,878 | 463,942 | ||||||||||
Shares of common stock issued for performance share long-term incentive awards | — | — | 298,007 | 660,263 | ||||||||||
Shares of common stock issued to non-employee directors for annual equity grants | — | — | 14,592 | 17,436 | ||||||||||
Shares of common stock issued for other share based compensation, net of shares withheld to fund statutory minimum tax withholding | — | — | — | 9,394 | ||||||||||
Total shares of common stock issued | — | — | 312,599 | 687,093 | ||||||||||
Excess tax benefit recorded to additional paid in capital | $ | (6 | ) | $ | 43 | $ | 4,192 | $ | 8,031 | |||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 28, 2013 | |
Income Taxes | |
Income Taxes | (13) Income Taxes |
During the second quarter of 2012, a change in the group of states in which we are subject to state income taxes caused a decrease in our blended state tax rate, resulting in a deferred tax benefit of $0.9 million. | |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 28, 2013 | |
Subsequent Events | |
Subsequent Events | (14) Subsequent Events |
Rickland Orchards Acquisition. On October 7, 2013, we acquired Rickland Orchards LLC, including the Rickland Orchards brand, from Natural Instincts LLC for a purchase price of approximately $57.5 million (subject to a post-closing working capital adjustment), of which approximately $37.4 million was paid in cash and approximately $20.1 million was paid in shares of our common stock. Natural Instincts will also be entitled to earn-out payments if certain performance goals are achieved. We paid the cash portion of the purchase price for the acquisition and will pay related fees and expenses from borrowings under our revolving credit facility. Following the closing of the acquisition and as of the date of issuance of the accompanying unaudited interim consolidated financial statements, the available borrowing capacity under our revolving credit facility is $229.5 million. The primary assets of the acquired business include intellectual property, business and customer information and inventory. Due to the relatively short time from the date of acquisition to the completion of the accompanying unaudited interim consolidated financial statements, the initial accounting for the acquisition, including our preliminary evaluation of the fair value for certain significant assets and liabilities, including goodwill and intangibles, is not complete. The goodwill and other intangible assets recognized are expected to be deductible for tax purposes. We will provide the preliminary purchase price allocation with our Annual Report on Form 10-K for fiscal 2013. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 28, 2013 | |
Summary of Significant Accounting Policies | |
Fiscal Year | Fiscal Year |
Typically, our fiscal quarters and fiscal year consist of 13 and 52 weeks, respectively, with our fiscal year ending on the Saturday closest to December 31. As a result, a 53rd week is added to our fiscal year every five or six years. In a 53-week fiscal year our fourth fiscal quarter contains 14 weeks. Our fiscal years ending December 28, 2013 (fiscal 2013) and December 29, 2012 (fiscal 2012) each contain 52 weeks. Each quarter of fiscal 2013 and 2012 contains 13 weeks. | |
Basis of Presentation | Basis of Presentation |
The accompanying unaudited consolidated interim financial statements for the thirteen and thirty-nine week periods ended September 28, 2013 (third quarter and first three quarters of 2013) and September 29, 2012 (third quarter and first three quarters of 2012) have been prepared by our company in accordance with accounting principles generally accepted in the United States of America pursuant to the rules and regulations of the Securities and Exchange Commission (SEC), and include the accounts of B&G Foods, Inc. and its subsidiaries. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations. However, our management believes, to the best of their knowledge, that the disclosures herein are adequate to make the information presented not misleading. All intercompany balances and transactions have been eliminated. The accompanying unaudited consolidated interim financial statements contain all adjustments (consisting only of normal and recurring adjustments) that are, in the opinion of management, necessary to present fairly our consolidated financial position as of September 28, 2013, the results of our operations and comprehensive income for the third quarter and first three quarters of 2013 and 2012, and cash flows for the first three quarters of 2013 and 2012. Our results of operations for the third quarter and first three quarters of 2013 are not necessarily indicative of the results to be expected for the full year. We have evaluated subsequent events for disclosure through the date of issuance of the accompanying unaudited consolidated interim financial statements. The accompanying unaudited consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements and notes for fiscal 2012 included in our Annual Report on Form 10-K for fiscal 2012 filed with the SEC on February 26, 2013. | |
Use of Estimates | Use of Estimates |
The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires our management to make a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Some of the more significant estimates and assumptions made by management involve trade and consumer promotion expenses; allowances for excess, obsolete and unsaleable inventories; pension benefits; acquisition accounting allocations; the recoverability of goodwill, other intangible assets, property, plant and equipment and deferred tax assets; the determination of the useful life of customer relationship and amortizable trademark intangibles; and the accounting for share-based compensation expense. Actual results could differ significantly from these estimates and assumptions. | |
Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors that management believes to be reasonable under the circumstances, including the current economic environment. We adjust such estimates and assumptions when facts and circumstances dictate. Volatility in the credit and equity markets can increase the uncertainty inherent in such estimates and assumptions. | |
Nature_of_Operations_Tables
Nature of Operations (Tables) | 9 Months Ended | |||||||||||||
Sep. 28, 2013 | ||||||||||||||
Business Acquisition | ||||||||||||||
Schedule of unaudited pro forma summary of operations | ||||||||||||||
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(dollars in thousands) | ||||||||||||||
Net sales | $ | 182,353 | $ | 171,730 | $ | 555,948 | $ | 510,746 | ||||||
Net income | 15,247 | 16,227 | 32,065 | 46,079 | ||||||||||
Basic earnings per share | $ | 0.29 | $ | 0.34 | $ | 0.61 | $ | 0.95 | ||||||
Diluted earnings per share | $ | 0.29 | $ | 0.33 | $ | 0.61 | $ | 0.95 | ||||||
New York Style and Old London acquisition | ||||||||||||||
Business Acquisition | ||||||||||||||
Schedule of preliminary allocation of purchase price to the estimated fair value of the net assets acquired | New York Style and Old London Acquisition (dollars in thousands): | |||||||||||||
Property, Plant and Equipment | $ | 42,889 | ||||||||||||
Trademarks — indefinite life intangible assets | 5,700 | |||||||||||||
Customer relationship intangibles — amortizable intangible assets | 5,100 | |||||||||||||
Goodwill | 4,963 | |||||||||||||
Inventory | 4,026 | |||||||||||||
Deferred taxes | 38 | |||||||||||||
Other working capital | (199 | ) | ||||||||||||
Total | $ | 62,517 | ||||||||||||
Pirate Brands Acquisition | ||||||||||||||
Business Acquisition | ||||||||||||||
Schedule of preliminary allocation of purchase price to the estimated fair value of the net assets acquired | Pirate Brands Acquisition (dollars in thousands): | |||||||||||||
Trademarks — indefinite life intangible assets | $ | 152,900 | ||||||||||||
Goodwill | 28,687 | |||||||||||||
Customer relationship intangibles — amortizable intangible assets | 11,400 | |||||||||||||
Inventory | 3,298 | |||||||||||||
Other working capital | (868 | ) | ||||||||||||
Total | $ | 195,417 |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Sep. 28, 2013 | ||||||||
Inventories | ||||||||
Summary of Inventories | Inventories consist of the following, as of the dates indicated (in thousands): | |||||||
September 28, 2013 | December 29, 2012 | |||||||
Raw materials and packaging | $ | 36,034 | $ | 19,828 | ||||
Work in process | — | 435 | ||||||
Finished goods | 73,931 | 69,494 | ||||||
Total | $ | 109,965 | $ | 89,757 |
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 28, 2013 | ||||||||||||||||||||
Goodwill and Other Intangible Assets | ||||||||||||||||||||
Schedule of goodwill and other intangible assets | The carrying amounts of goodwill and other intangible assets, as of the dates indicated, consist of the following (in thousands): | |||||||||||||||||||
As of September 28, 2013 | As of December 29, 2012 | |||||||||||||||||||
Gross Carrying | Accumulated | Net Carrying | Gross Carrying | Accumulated | Net Carrying | |||||||||||||||
Amount | Amortization | Amount | Amount | Amortization | Amount | |||||||||||||||
Amortizable Intangible Assets | ||||||||||||||||||||
Trademarks | $ | 6,800 | $ | 189 | $ | 6,611 | $ | — | $ | — | $ | — | ||||||||
Customer relationships | 178,540 | 46,663 | 131,877 | 165,340 | 40,244 | 125,096 | ||||||||||||||
$ | 185,340 | $ | 46,852 | $ | 138,488 | $ | 165,340 | $ | 40,244 | $ | 125,096 | |||||||||
Unamortizable Intangible Assets | ||||||||||||||||||||
Goodwill | $ | 296,910 | $ | 267,940 | ||||||||||||||||
Trademarks | $ | 665,000 | $ | 512,100 | ||||||||||||||||
Note: The increases in carrying amounts are attributable to both the TrueNorth acquisition and Pirate Brands acquisition. |
Longterm_Debt_Tables
Long-term Debt (Tables) | 9 Months Ended | |||||||
Sep. 28, 2013 | ||||||||
Long-term Debt | ||||||||
Schedule of Long-Term Debt | Long-term debt consists of the following, as of the dates indicated (in thousands): | |||||||
September 28, 2013 | December 29, 2012 | |||||||
Senior secured credit agreement: | ||||||||
Revolving credit facility | $ | 30,000 | $ | 25,000 | ||||
Tranche A term loans due 2016 | 135,000 | 144,375 | ||||||
Tranche B term loans due 2018 | — | 223,313 | ||||||
7.625% senior notes due 2018 | — | 248,500 | ||||||
4.625% senior notes due 2021 | 700,000 | — | ||||||
Unamortized discount | (409 | ) | (3,499 | ) | ||||
Total long-term debt, net of unamortized discount | 864,591 | 637,689 | ||||||
Current portion of long-term debt | (48,750 | ) | (40,375 | ) | ||||
Long-term debt, net of unamortized discount and excluding current portion | $ | 815,841 | $ | 597,314 | ||||
Schedule of aggregate contractual maturities of long-term debt | As of September 28, 2013, the aggregate contractual maturities of long-term debt are as follows (in thousands): | |||||||
Years ending December: | ||||||||
2013 | $ | 3,750 | ||||||
2014 | 26,250 | |||||||
2015 | 22,500 | |||||||
2016* | 112,500 | |||||||
2017 | — | |||||||
Thereafter | 700,000 | |||||||
Total | $ | 865,000 | ||||||
* As of the date of issuance of the accompanying unaudited consolidated interim financial statements we have $70.0 million of revolving loans outstanding. Included in fiscal 2016 is $30.0 million of revolving loans that were outstanding as of September 28, 2013. The revolving loans mature in 2016. However, because we expect to reduce our revolving loan borrowings by at least $30.0 million during the remainder of 2013, $30.0 million is reflected in the accompanying unaudited interim consolidated balance sheet within current portion of long-term debt. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||
Sep. 28, 2013 | ||||||||||
Fair Value Measurements | ||||||||||
Summary of carrying values and fair values of revolving credit loan borrowings, term loan borrowings and senior notes | The carrying values and fair values of our revolving credit loan borrowings, term loan borrowings and senior notes as of September 28, 2013 and December 29, 2012 are as follows (in thousands): | |||||||||
September 28, 2013 | December 29, 2012 | |||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||
Revolving Credit Loans | 30,000 | 30,000 | -1 | 25,000 | 25,000 | -1 | ||||
Tranche A Term Loans due 2016 | 134,591 | -2 | 135,000 | -1 | 143,830 | -2 | 144,375 | -1 | ||
Tranche B Term Loans due 2018 | — | — | 221,504 | -2 | 226,662 | -1 | ||||
7.625% Senior Notes due 2018 | — | — | 247,355 | -2 | 269,001 | -3 | ||||
4.625% Senior Notes due 2021 | 700,000 | 668,500 | -3 | — | — | |||||
(1) Fair values are estimated based on Level 2 inputs, which were quoted prices for identical or similar instruments in markets that are not active. | ||||||||||
(2) The carrying values of the tranche A term loans, tranche B term loans and 7.625% senior notes are net of discount. At September 28, 2013, the face amount of the tranche A term loans was $135.0 million. At December 29, 2012, the face amounts of the tranche A term loans, tranche B term loans and 7.625% senior notes were $144.4 million, $223.3 million and $248.5 million, respectively. | ||||||||||
(3) Fair values are estimated based on quoted market prices. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended | ||||||||||
Sep. 28, 2013 | |||||||||||
Accumulated Other Comprehensive Loss | |||||||||||
Schedule of reclassification from accumulated other comprehensive loss | The reclassification from accumulated other comprehensive loss for the third quarter and first three quarters of 2013 are as follows (in thousands): | ||||||||||
Amount Reclassified From AOCL | |||||||||||
Details about AOCL Components | Thirteen Weeks | Thirty-Nine | Affected Line Item in | ||||||||
Ended | Weeks Ended | the Statement Where | |||||||||
September 28, | September 28, | Net Income (loss) is | |||||||||
2013 | 2013 | Presented | |||||||||
Defined benefit pension plan items | |||||||||||
Amortization of prior service cost | $ | 11 | $ | 33 | See (1) below | ||||||
Amortization of unrecognized loss | 195 | 619 | See (1) below | ||||||||
206 | 652 | Total before tax | |||||||||
(90 | ) | (253 | ) | Income tax expense | |||||||
Total reclassification | $ | 116 | $ | 399 | Net of tax | ||||||
(1) These items are included in the computation of net periodic pension cost. See Note 8, “Pension Benefits” for additional information. | |||||||||||
Schedule of changes in accumulated other comprehensive loss | Changes in accumulated other comprehensive loss as of September 28, 2013 is as follows (in thousands): | ||||||||||
Defined Benefit | Foreign | Total | |||||||||
Pension Plan | Currency | ||||||||||
Items | Translation | ||||||||||
Adjustments | |||||||||||
Beginning balance | $ | (11,036 | ) | $ | (59 | ) | $ | (11,095 | ) | ||
Other comprehensive loss before reclassifications | — | (28 | ) | (28 | ) | ||||||
Amounts reclassified from AOCL | 399 | — | 399 | ||||||||
Net current period other comprehensive income (loss) | 399 | (28 | ) | 371 | |||||||
Ending balance | $ | (10,637 | ) | $ | (87 | ) | $ | (10,724 | ) |
Pension_Benefits_Tables
Pension Benefits (Tables) | 9 Months Ended | |||||||||||||
Sep. 28, 2013 | ||||||||||||||
Pension Benefits | ||||||||||||||
Components of Net periodic pension costs | Net periodic pension costs for company sponsored defined benefit pension plans for the third quarter and first three quarters of 2013 and 2012 include the following components (in thousands): | |||||||||||||
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Service cost—benefits earned during the period | $ | 792 | $ | 602 | $ | 2,493 | $ | 1,790 | ||||||
Interest cost on projected benefit obligation | 528 | 512 | 1,583 | 1,524 | ||||||||||
Expected return on plan assets | (913 | ) | (734 | ) | (2,722 | ) | (2,184 | ) | ||||||
Amortization of unrecognized prior service cost | 11 | 11 | 33 | 33 | ||||||||||
Amortization of unrecognized loss | 195 | 244 | 619 | 678 | ||||||||||
Net periodic pension cost | $ | 613 | $ | 635 | $ | 2,006 | $ | 1,841 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||
Sep. 28, 2013 | |||||
Commitments and Contingencies | |||||
Summary of future minimum lease payments under non-cancelable operating leases | As of September 28, 2013, future minimum lease payments under non-cancelable operating leases in effect at quarter-end (with initial lease terms in excess of one year) were as follows (in thousands): | ||||
Fiscal year ending: | Third Parties | ||||
2013 | $ | 1,366 | |||
2014 | 3,500 | ||||
2015 | 3,025 | ||||
2016 | 3,066 | ||||
2017 | 720 | ||||
Thereafter | 1,606 | ||||
Total | $ | 13,283 |
Earnings_per_Share_Tables
Earnings per Share (Tables) | 9 Months Ended | |||||||||
Sep. 28, 2013 | ||||||||||
Earnings per Share | ||||||||||
Schedule of calculations related to basic and diluted earning per share | ||||||||||
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||
September 28, | September 29, | September 28, | September 29, | |||||||
2013 | 2012 | 2013 | 2012 | |||||||
Weighted average shares outstanding: | ||||||||||
Basic | 52,873,364 | 48,387,225 | 52,817,048 | 48,267,133 | ||||||
Net effect of potentially dilutive share-based compensation awards | 247,028 | 355,937 | 158,031 | 330,032 | ||||||
Diluted | 53,120,392 | 48,743,162 | 52,975,079 | 48,597,165 |
ShareBased_Payments_Tables
Share-Based Payments (Tables) | 9 Months Ended | |||||||||||||
Sep. 28, 2013 | ||||||||||||||
Share-Based Payments | ||||||||||||||
Schedule of compensation expense recognized for share-based payments | The following table sets forth the compensation expense recognized for share-based payments (performance share long-term incentive awards, non-employee director stock grants and other share based compensation) during the third quarter and first three quarters of 2013 and 2012 and where that expense is reflected in our consolidated statements of operations (in thousands): | |||||||||||||
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||
Consolidated Statements of Operations Location | September 28, | September 29, | September 28, | September 29, | ||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Compensation expense included in cost of goods sold | $ | 282 | $ | 199 | $ | 716 | $ | 567 | ||||||
Compensation expense included in selling, general and administrative expenses | 827 | 672 | 2,553 | 2,333 | ||||||||||
Total compensation expense for share-based payments | $ | 1,109 | $ | 871 | $ | 3,269 | $ | 2,900 | ||||||
Schedule of non-vested performance share long-term incentive award activity | The following table details the activity in our non-vested performance share long-term incentive awards for the first three quarters of 2013: | |||||||||||||
Number of | Weighted Average | |||||||||||||
Performance Shares | Grant Date Fair | |||||||||||||
Value (per share)(2) | ||||||||||||||
Beginning of fiscal 2013 | 1,012,729 | -1 | $ | 10.83 | ||||||||||
Granted | 116,048 | -1 | $ | 28.24 | ||||||||||
Vested | (512,885 | ) | $ | 7.29 | ||||||||||
Forfeited | (2,004 | ) | $ | 20.34 | ||||||||||
End of first three quarters of 2013 | 613,888 | -1 | $ | 17.04 | ||||||||||
(1) Solely for purposes of this table, the number of performance shares is based on the participants earning the maximum number of performance shares (i.e., 200% or 300% of the target number of performance shares). | ||||||||||||||
(2) The fair value of the awards was determined based upon the closing price of our common stock on the applicable measurement dates (i.e., the deemed grant dates for accounting purposes) reduced by the present value of expected dividends using the risk-free interest-rate as the award holders are not entitled to dividends or dividend equivalents during the vesting period. | ||||||||||||||
Schedule of number of shares of common stock issued by our entity upon the vesting of performance share long-term incentive awards and for non-employee director annual equity grants and other share based compensation | ||||||||||||||
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Number of performance shares vested | — | — | 512,885 | 1,124,205 | ||||||||||
Shares withheld to fund statutory minimum tax withholding | — | — | 214,878 | 463,942 | ||||||||||
Shares of common stock issued for performance share long-term incentive awards | — | — | 298,007 | 660,263 | ||||||||||
Shares of common stock issued to non-employee directors for annual equity grants | — | — | 14,592 | 17,436 | ||||||||||
Shares of common stock issued for other share based compensation, net of shares withheld to fund statutory minimum tax withholding | — | — | — | 9,394 | ||||||||||
Total shares of common stock issued | — | — | 312,599 | 687,093 | ||||||||||
Excess tax benefit recorded to additional paid in capital | $ | (6 | ) | $ | 43 | $ | 4,192 | $ | 8,031 | |||||
Nature_of_Operations_Details
Nature of Operations (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Oct. 31, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Jul. 08, 2013 | Dec. 28, 2013 | |
item | Customer Relationship Intangibles | Customer Relationship Intangibles | Amortizable trademarks | Amortizable trademarks | New York Style and Old London acquisition | Pirate Brands Acquisition | Pirate Brands Acquisition | Pirate Brands Acquisition | Pirate Brands Acquisition | Pirate Brands Acquisition | Pirate Brands Acquisition | ||||
Maximum | Minimum | Maximum | Minimum | Forecast | |||||||||||
Nature of Operations | |||||||||||||||
Number of branded household products | 2 | ||||||||||||||
Business Acquisition | |||||||||||||||
Purchase price of business acquisition | $62,500,000 | ||||||||||||||
Estimated useful life | 20 years | 10 years | 20 years | 10 years | |||||||||||
Estimated fair value of the net assets acquired | |||||||||||||||
Property, Plant and Equipment | 42,889,000 | ||||||||||||||
Trademarks - indefinite life intangible assets | 5,700,000 | 152,900,000 | |||||||||||||
Customer relationship intangibles - amortizable intangible assets | 5,100,000 | 11,400,000 | |||||||||||||
Goodwill | 4,963,000 | 28,687,000 | |||||||||||||
Inventory | 4,026,000 | 3,298,000 | |||||||||||||
Deferred taxes | 38,000 | ||||||||||||||
Other working capital | -199,000 | -868,000 | |||||||||||||
Total | 62,517,000 | 195,417,000 | |||||||||||||
Purchase price in cash | 195,400,000 | ||||||||||||||
Unaudited Pro Forma Summary of Operations | |||||||||||||||
Net sales | 181,350,000 | 154,155,000 | 513,426,000 | 460,106,000 | 16,500,000 | 16,500,000 | |||||||||
Net sales | 182,353,000 | 171,730,000 | 555,948,000 | 510,746,000 | |||||||||||
Net income | $15,247,000 | $16,227,000 | $32,065,000 | $46,079,000 | |||||||||||
Basic earnings per share (in dollars per share) | $0.29 | $0.34 | $0.61 | $0.95 | |||||||||||
Diluted earnings per share (in dollars per share) | $0.29 | $0.33 | $0.61 | $0.95 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) | 9 Months Ended | 12 Months Ended | ||
Sep. 28, 2013 | Sep. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | |
Summary of Significant Accounting Policies | ||||
Number of weeks in fiscal year | 364 days | 364 days | ||
Number of weeks in each fiscal quarter | 91 days | 91 days | ||
Number of weeks in fourth fiscal quarter | 98 days | |||
Maximum | ||||
Summary of Significant Accounting Policies | ||||
Number of weeks in fiscal year | 371 days | |||
Number of fiscal years | 6 years | |||
Minimum | ||||
Summary of Significant Accounting Policies | ||||
Number of weeks in fiscal year | 364 days | |||
Number of fiscal years | 5 years |
Inventories_Details
Inventories (Details) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Inventories | ||
Raw materials and packaging | $36,034 | $19,828 |
Work in process | 435 | |
Finished goods | 73,931 | 69,494 |
Total | $109,965 | $89,757 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Dec. 29, 2012 | |
Amortizable Intangible Assets | |||||
Gross Carrying Amount | $185,340,000 | $185,340,000 | $165,340,000 | ||
Accumulated Amortization | 46,852,000 | 46,852,000 | 40,244,000 | ||
Net Carrying Amount | 138,488,000 | 138,488,000 | 125,096,000 | ||
Amortization expense | 2,385,000 | 2,022,000 | 6,608,000 | 6,067,000 | |
Unamortizable Intangible Assets | |||||
Goodwill | 296,910,000 | 296,910,000 | 267,940,000 | ||
Trademarks | |||||
Unamortizable Intangible Assets | |||||
Unamortizable intangible assets excluding goodwill | 665,000,000 | 665,000,000 | 512,100,000 | ||
Trademarks | |||||
Amortizable Intangible Assets | |||||
Gross Carrying Amount | 6,800,000 | 6,800,000 | |||
Accumulated Amortization | 189,000 | 189,000 | |||
Net Carrying Amount | 6,611,000 | 6,611,000 | |||
Amortization expense | 100,000 | 200,000 | |||
Future amortization expense | |||||
Remainder of fiscal 2013 | 100,000 | 100,000 | |||
2014 | 500,000 | ||||
2015 | 500,000 | ||||
2016 | 500,000 | ||||
2017 | 500,000 | ||||
Customer Relationship Intangibles | |||||
Amortizable Intangible Assets | |||||
Gross Carrying Amount | 178,540,000 | 178,540,000 | 165,340,000 | ||
Accumulated Amortization | 46,663,000 | 46,663,000 | 40,244,000 | ||
Net Carrying Amount | 131,877,000 | 131,877,000 | 125,096,000 | ||
Amortization expense | 2,300,000 | 2,000,000 | 6,400,000 | 6,100,000 | |
Future amortization expense | |||||
Remainder of fiscal 2013 | 2,200,000 | 2,200,000 | |||
2014 | 9,000,000 | ||||
2015 | 9,000,000 | ||||
2016 | 9,000,000 | ||||
2017 | $9,000,000 |
Longterm_Debt_Details
Long-term Debt (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 0 Months Ended | 9 Months Ended | 3 Months Ended | 0 Months Ended | |||||||||||||||||||||||||||||||
Sep. 28, 2013 | Jun. 29, 2013 | Sep. 28, 2013 | Sep. 29, 2012 | Dec. 29, 2012 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Oct. 23, 2013 | Jul. 03, 2013 | Dec. 29, 2012 | Jul. 03, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Jun. 04, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Dec. 29, 2012 | Jul. 31, 2013 | Jun. 29, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Dec. 29, 2012 | Jun. 04, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Sep. 28, 2013 | Jul. 03, 2013 | Jul. 03, 2013 | Jul. 03, 2013 | Jul. 03, 2013 | |
Greater than or equal to 3.00 to 1.00 | Less than 3.00 to 1.00 | Less than 2.50 to 1.00 | Maximum | Maximum | Minimum | Revolving credit loans | Revolving credit loans | Revolving credit loans | Revolving credit loans | Revolving credit loans | Revolving credit loans | Revolving credit loans | Revolving credit loans | Revolving credit loans | Revolving credit loans | Letters of credit facility | Term loan due 2013 | Tranche A Term loans due 2016 | Tranche A Term loans due 2016 | Tranche A Term loans due 2016 | Tranche A Term loans due 2016 | Tranche A Term loans due 2016 | Tranche A Term loans due 2016 | Tranche B Term loans due 2018 | Tranche B Term loans due 2018 | Tranche B Term loans due 2018 | Tranche B Term loans due 2018 | 7.625% Senior Notes due 2018 | 7.625% Senior Notes due 2018 | 7.625% Senior Notes due 2018 | 7.625% Senior Notes due 2018 | 7.625% Senior Notes due 2018 | 4.625% Senior Notes due 2021 | 4.625% Senior Notes due 2021 | 4.625% Senior Notes due 2021 | Amended and restated credit agreement | Amended and restated credit agreement | Amended and restated credit agreement | Amended and restated credit agreement | Amended and restated credit agreement | ||||||
Less than 3.00 to 1.00 | Less than 2.50 to 1.00 | Second quarter of 2013 through the fourth quarter of 2014 | Second quarter of 2013 through the fourth quarter of 2014 | First quarter of 2015 through the fourth quarter of 2015 | First quarter of 2016 and thereafter | Base rate | LIBOR | Maximum | Base rate | Base rate | LIBOR | LIBOR | Second quarter of 2013 through the fourth quarter of 2014 | First quarter of 2015 through the fourth quarter of 2015 | First quarter of 2016 and thereafter | |||||||||||||||||||||||||||||||
Maximum | Minimum | Maximum | Minimum | |||||||||||||||||||||||||||||||||||||||||||
Information related to long-term debt | ||||||||||||||||||||||||||||||||||||||||||||||
Total long-term debt, net of unamortized discount | $864,591,000 | $864,591,000 | $637,689,000 | |||||||||||||||||||||||||||||||||||||||||||
Current portion of long-term debt | -48,750,000 | -48,750,000 | -40,375,000 | -30,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Long-term debt, net of unamortized discount and excluding current portion | 815,841,000 | 815,841,000 | 597,314,000 | 30,000,000 | 25,000,000 | 135,000,000 | 144,375,000 | 223,313,000 | 248,500,000 | 700,000,000 | ||||||||||||||||||||||||||||||||||||
Interest rate (as a percent) | 7.63% | 4.63% | 4.63% | |||||||||||||||||||||||||||||||||||||||||||
Unamortized discount | -409,000 | -409,000 | -3,499,000 | |||||||||||||||||||||||||||||||||||||||||||
Maximum permissible consolidated leverage ratio | 6 | 7 | 6.75 | 6.5 | 7 | 6.75 | 6.5 | |||||||||||||||||||||||||||||||||||||||
Outstanding amount of debt | 30,000,000 | 70,000,000 | 135,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Commitment fees (as a percent) | 0.50% | |||||||||||||||||||||||||||||||||||||||||||||
Fronting fee (as a percent) | 0.25% | |||||||||||||||||||||||||||||||||||||||||||||
Aggregate contractual maturities of long-term debt | ||||||||||||||||||||||||||||||||||||||||||||||
Fiscal 2013 | 3,750,000 | 3,750,000 | 13,100,000 | |||||||||||||||||||||||||||||||||||||||||||
Fiscal 2014 | 26,250,000 | 26,250,000 | 26,300,000 | |||||||||||||||||||||||||||||||||||||||||||
Fiscal 2015 | 22,500,000 | 22,500,000 | 22,500,000 | |||||||||||||||||||||||||||||||||||||||||||
Fiscal 2016 | 112,500,000 | 112,500,000 | 30,000,000 | 82,500,000 | ||||||||||||||||||||||||||||||||||||||||||
Senior secured credit facility | ||||||||||||||||||||||||||||||||||||||||||||||
Maximum capacity available | 200,000,000 | 50,000,000 | 300,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Senior secured leverage ratio | 3 | 2.5 | ||||||||||||||||||||||||||||||||||||||||||||
Mandatory prepayment as percentage of adjusted excess cash flow | 50.00% | 25.00% | 0.00% | |||||||||||||||||||||||||||||||||||||||||||
Outstanding letters of credit | 500,000 | |||||||||||||||||||||||||||||||||||||||||||||
Available borrowing capacity | 269,500,000 | |||||||||||||||||||||||||||||||||||||||||||||
Interest rate on term loan (as a percent) | 3.18% | 2.00% | 1.50% | 3.00% | 2.50% | |||||||||||||||||||||||||||||||||||||||||
Consolidated interest leverage ratio | 1.75 | |||||||||||||||||||||||||||||||||||||||||||||
Senior secured leverage ratio after utilization of incremental facility | 4 | |||||||||||||||||||||||||||||||||||||||||||||
Number of quarter senior secured leverage ratio to be maintained | 4 years | |||||||||||||||||||||||||||||||||||||||||||||
Number of quarter consolidated leverage ratio to be maintained | 4 years | |||||||||||||||||||||||||||||||||||||||||||||
Number of quarter consolidated interest coverage ratio to be maintained | 4 years | |||||||||||||||||||||||||||||||||||||||||||||
Information related to senior notes | ||||||||||||||||||||||||||||||||||||||||||||||
Principal amount of notes | 700,000,000 | |||||||||||||||||||||||||||||||||||||||||||||
Debt issuance price (as a percent) | 100.00% | |||||||||||||||||||||||||||||||||||||||||||||
Accrued interest | 11,300,000 | 11,300,000 | 9,900,000 | |||||||||||||||||||||||||||||||||||||||||||
Maximum redemption price as a percentage of original principal amount in the period beginning June 1, 2016 | 103.47% | |||||||||||||||||||||||||||||||||||||||||||||
Redemption price as a percentage of principal amount, if the notes are redeemed on or after June 1, 2019 | 100.00% | |||||||||||||||||||||||||||||||||||||||||||||
Maximum percentage of aggregate principal amount of notes redeemable prior to June 1, 2016 with net proceeds of certain equity offerings | 35.00% | |||||||||||||||||||||||||||||||||||||||||||||
Maximum redemption price as a percentage of original principal amount before June 1, 2016 | 104.63% | |||||||||||||||||||||||||||||||||||||||||||||
Interest rate, description of reference rate | BASE | LIBOR | BASE | BASE | LIBOR | LIBOR | ||||||||||||||||||||||||||||||||||||||||
Principal amount of senior subordinated notes repurchased | 40,000,000 | 222,200,000 | 222,200,000 | 30,200,000 | 218,300,000 | 30,200,000 | 218,300,000 | |||||||||||||||||||||||||||||||||||||||
Redemption price of senior notes as a percentage of principal amount | 107.50% | |||||||||||||||||||||||||||||||||||||||||||||
Percentage of senior subordinated notes principal redeemed for cash | 108.09% | |||||||||||||||||||||||||||||||||||||||||||||
Deferred financing costs capitalized | 300,000 | 12,200,000 | 200,000 | |||||||||||||||||||||||||||||||||||||||||||
Net deferred debt financing costs | 18,400,000 | 18,400,000 | 17,500,000 | |||||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | 2,813,000 | 31,291,000 | 28,400,000 | 2,800,000 | ||||||||||||||||||||||||||||||||||||||||||
Write-off of deferred debt financing costs | 7,900,000 | 4,900,000 | 400,000 | 3,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Debt financing costs, amortization period | 5 years | 8 years | 5 years | |||||||||||||||||||||||||||||||||||||||||||
Prepayments and repurchases of long-term debt | 501,404,000 | 7,312,000 | 9,400,000 | 5,600,000 | ||||||||||||||||||||||||||||||||||||||||||
Repurchase premium and other expenses on extinguishment of debt | 17,900,000 | 2,300,000 | ||||||||||||||||||||||||||||||||||||||||||||
Write-off of unamortized discount | $2,600,000 | $100,000 |
Longterm_Debt_Details_2
Long-term Debt (Details 2) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 | Oct. 23, 2013 | Sep. 28, 2013 | Sep. 28, 2013 |
Revolving Loans | Revolving Loans | Revolving Loans | |||
Minimum | |||||
Aggregate contractual maturities of long-term debt | |||||
2013 | $3,750,000 | ||||
2014 | 26,250,000 | ||||
2015 | 22,500,000 | ||||
2016 | 112,500,000 | 30,000,000 | |||
Thereafter | 700,000,000 | ||||
Total | 865,000,000 | ||||
Current portion of long-term debt | 48,750,000 | 40,375,000 | 30,000,000 | ||
Outstanding amount of debt | 70,000,000 | 30,000,000 | |||
Amount of expected reduction in borrowings | $30,000,000 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Sep. 28, 2013 | Sep. 28, 2013 | Jun. 04, 2013 | Sep. 28, 2013 | Dec. 29, 2012 | Dec. 29, 2012 | Dec. 29, 2012 | Sep. 28, 2013 | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Dec. 29, 2012 | Dec. 29, 2012 | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Dec. 29, 2012 | Dec. 29, 2012 | Dec. 29, 2012 | Sep. 28, 2013 |
7.625% Senior Notes due 2018 | 4.625% Senior Notes due 2021 | 4.625% Senior Notes due 2021 | Fair value measured on recurring basis | Fair value measured on recurring basis | Fair value measured on recurring basis | Fair value measured on recurring basis | Fair value measured on recurring basis | Fair value measured on recurring basis | Fair value measured on recurring basis | Fair value measured on recurring basis | Fair value measured on recurring basis | Fair value measured on recurring basis | Fair value measured on recurring basis | Fair value measured on recurring basis | Fair value measured on recurring basis | Fair value measured on recurring basis | Fair value measured on recurring basis | Fair value measured on recurring basis | Fair value measured on recurring basis | Fair value measured on recurring basis | Fair value measured on recurring basis | Fair value measured on recurring basis | |
Tranche A Term loans due 2016 | Tranche A Term loans due 2016 | Tranche B Term loans due 2018 | 7.625% Senior Notes due 2018 | 4.625% Senior Notes due 2021 | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Carrying Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | Fair Value | ||||
Revolving credit loans | Revolving credit loans | Tranche A Term loans due 2016 | Tranche A Term loans due 2016 | Tranche B Term loans due 2018 | 7.625% Senior Notes due 2018 | 7.625% Senior Notes due 2018 | 4.625% Senior Notes due 2021 | Revolving credit loans | Revolving credit loans | Tranche A Term loans due 2016 | Tranche A Term loans due 2016 | Tranche B Term loans due 2018 | 7.625% Senior Notes due 2018 | 4.625% Senior Notes due 2021 | |||||||||
Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | |||||||||||||||||||
Financial assets and liabilities at fair value | |||||||||||||||||||||||
Fair values and carrying amount of revolving credit loans, term loan and senior notes | $30,000,000 | $25,000,000 | $134,591,000 | $143,830,000 | $221,504,000 | $247,355,000 | $700,000,000 | $30,000,000 | $25,000,000 | $135,000,000 | $144,375,000 | $226,662,000 | $269,001,000 | $668,500,000 | |||||||||
Face amount of senior notes | $135,000,000 | $144,400,000 | $223,300,000 | $248,500,000 | |||||||||||||||||||
Interest rate (as a percent) | 7.63% | 4.63% | 4.63% | 4.63% | 7.63% |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Reclassification out of accumulated other comprehensive loss | ||||
Amortization of unrecognized prior service cost | $11 | $11 | $33 | $33 |
Amortization of unrecognized loss | 195 | 244 | 619 | 678 |
Income tax expense | 8,350 | 9,429 | 18,328 | 26,041 |
Net of tax | -399 | |||
Amount Reclassified from AOCL | ||||
Reclassification out of accumulated other comprehensive loss | ||||
Amortization of unrecognized prior service cost | 11 | 33 | ||
Amortization of unrecognized loss | 195 | 619 | ||
Total before tax | 206 | 652 | ||
Income tax expense | -90 | -253 | ||
Net of tax | $116 | $399 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Loss (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Changes in accumulated other comprehensive loss | ||||
Beginning balance | ($11,095) | |||
Other comprehensive loss before reclassifications | -28 | |||
Amounts reclassified from AOCL | 399 | |||
Other comprehensive income | 150 | 198 | 371 | 427 |
Ending balance | -10,724 | -10,724 | ||
Defined benefit pension plan | ||||
Changes in accumulated other comprehensive loss | ||||
Beginning balance | -11,036 | |||
Amounts reclassified from AOCL | 399 | |||
Other comprehensive income | 399 | |||
Ending balance | -10,637 | -10,637 | ||
Foreign Currency Translation Adjustments | ||||
Changes in accumulated other comprehensive loss | ||||
Beginning balance | -59 | |||
Other comprehensive loss before reclassifications | -28 | |||
Other comprehensive income | -28 | |||
Ending balance | ($87) | ($87) |
Pension_Benefits_Details
Pension Benefits (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Components of Net periodic cost | ||||
Service cost-benefits earned during the period | $792 | $602 | $2,493 | $1,790 |
Interest cost on projected benefit obligation | 528 | 512 | 1,583 | 1,524 |
Expected return on plan assets | -913 | -734 | -2,722 | -2,184 |
Amortization of unrecognized prior service cost | 11 | 11 | 33 | 33 |
Amortization of unrecognized loss | 195 | 244 | 619 | 678 |
Net periodic pension cost | $613 | $635 | $2,006 | $1,841 |
Pension_Benefits_Details_2
Pension Benefits (Details 2) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Dec. 29, 2012 | Dec. 29, 2012 | Dec. 28, 2013 |
Maximum | Fiscal 2013 | |||
Maximum | ||||
Pension Benefits | ||||
Matching component of contribution by employer to defined contribution plan | $4.80 | |||
Expected cash flows for pension plan | ||||
Surcharge payable on hours worked applicable for initial critical year of plan (as a percent) | 5.00% | |||
Surcharge payable on hours worked applicable for succeeding plan years (as a percent) | 10.00% | |||
Pension expense relating to multi-employer plan | 1 | |||
Maximum contribution to multi-employer plan (as a percent) | 5.00% | |||
Defined Benefit Plan Disclosure | ||||
Surcharges paid | $0.10 | $0.10 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 28, 2013 |
item | |
Future minimum lease payments under non-cancelable operating leases | |
2013 | 1,366 |
2014 | 3,500 |
2015 | 3,025 |
2016 | 3,066 |
2017 | 720 |
Thereafter | 1,606 |
Total | 13,283 |
Pirate Brands Acquisition | |
Legal Proceedings | |
Number of duplicative putative class actions | 6 |
Number of duplicative putative class actions filed prior to ownership of acquisition | 2 |
Number of duplicative putative class actions entity seeks to consolidate into a single proceeding | 6 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details 2) | 9 Months Ended |
Sep. 28, 2013 | |
item | |
Information related to Collective Bargaining Agreements | |
Number of executive officers with employment agreements | 7 |
Number of employees covered under collective bargaining agreements | |
Information related to Collective Bargaining Agreements | |
Number of employees | 334 |
Percentage of total employees covered under collective bargaining agreements | 33.00% |
Total number of employees | |
Information related to Collective Bargaining Agreements | |
Number of employees | 1,012 |
Number of collective bargaining agreements expiring within next 12 months | |
Information related to Collective Bargaining Agreements | |
Number of collective bargaining agreements expiring within next 12 months | 0 |
Number of employees covered under collective bargaining agreements expiring with next 12 months | |
Information related to Collective Bargaining Agreements | |
Number of employees | 48 |
Earnings_per_Share_Details
Earnings per Share (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | |
Weighted average shares outstanding: | ||||
Basic (in shares) | 52,873,364 | 48,387,225 | 52,817,048 | 48,267,133 |
Net effect of potentially dilutive share-based compensation awards (in shares) | 247,028 | 355,937 | 158,031 | 330,032 |
Diluted (in shares) | 53,120,392 | 48,743,162 | 52,975,079 | 48,597,165 |
Business_and_Credit_Concentrat1
Business and Credit Concentrations and Geographic Information (Details) | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 28, 2013 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Dec. 29, 2012 | |
item | Net sales | Net sales | Net sales | Net sales | Net sales | Net sales | Accounts receivable | Accounts receivable | Accounts receivable | Accounts receivable | Accounts receivable | Accounts receivable | Accounts receivable | Accounts receivable | |
Consolidated net sales | Consolidated net sales | Consolidated net sales | Consolidated net sales | Consolidated net sales | Consolidated net sales | Consolidated net sales | Consolidated net sales | Consolidated net sales | Consolidated net sales | Trade accounts receivable | Trade accounts receivable | Trade accounts receivable | Trade accounts receivable | ||
Wal-Mart | Wal-Mart | Top ten customers | Top ten customers | Top ten customers | Top ten customers | Wal-Mart | Wal-Mart | ||||||||
Business and Credit Concentrations | |||||||||||||||
Percentage of concentration risk | 0.00% | 0.00% | 18.60% | 19.80% | 48.90% | 51.30% | 0.00% | 0.00% | 48.20% | 50.20% | 13.30% | 14.90% | |||
Maximum percentage of net sales to foreign countries | 3.20% | 2.40% | |||||||||||||
Threshold for further disclosure regarding major customers (as a percent) | 10.00% | 10.00% | 10.00% | 10.00% | |||||||||||
Number of top customers | 10 |
ShareBased_Payments_Details
Share-Based Payments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Compensation expense recognized for share-based payments | $1,109,000 | $871,000 | $3,269,000 | $2,900,000 |
Cost of Sales | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Compensation expense recognized for share-based payments | 282,000 | 199,000 | 716,000 | 567,000 |
Selling, General and Administrative Expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Compensation expense recognized for share-based payments | 827,000 | 672,000 | 2,553,000 | 2,333,000 |
Performance share long Term incentive awards | ||||
Share based compensation expense related to long-term incentive plans | ||||
Unrecognized compensation expense | $4,300,000 | $4,300,000 | ||
Period over which unrecognized compensation expense is expected to be recognized | 2 years 3 months |
ShareBased_Payments_Details_2
Share-Based Payments (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Dec. 29, 2012 |
Weighted Average Grant Date Fair Value | |||||
Total shares of common stock issued | 312,599 | 687,093 | |||
Other disclosure | |||||
Excess tax benefit recorded to additional paid in capital | $4,192 | $8,031 | |||
Non-Employee Directors | |||||
Weighted Average Grant Date Fair Value | |||||
Total shares of common stock issued | 14,592 | 17,436 | |||
Performance share long Term incentive awards | |||||
Number of Shares | |||||
Balance at the beginning of the period (in shares) | 1,012,729 | ||||
Granted (in shares) | 116,048 | ||||
Vested (in shares) | -512,885 | -1,124,205 | |||
Forfeited (in shares) | -2,004 | ||||
Balance at the end of the period (in shares) | 613,888 | 613,888 | |||
Weighted Average Grant Date Fair Value | |||||
Balance at the beginning of the period (in dollars per share) | $10.83 | ||||
Granted (in dollars per share) | $28.24 | ||||
Vested (in dollars per share) | $7.29 | ||||
Forfeited (in dollars per share) | $20.34 | ||||
Balance at the end of the period (in dollars per share) | $17.04 | $17.04 | |||
Percentage of target number of shares that may be earned scenario 1, maximum | 200.00% | ||||
Percentage of target number of shares that may be earned scenario 2, maximum | 300.00% | ||||
Number of performance shares vested | 512,885 | 1,124,205 | |||
Shares withheld to fund statutory minimum tax withholding | 214,878 | 463,942 | |||
Shares of common stock issued for other share based compensation, net of shares withheld to fund statutory minimum tax withholding | 9,394 | ||||
Total shares of common stock issued | 298,007 | 660,263 | |||
Other disclosure | |||||
Excess tax benefit recorded to additional paid in capital | ($6) | $43 | $4,192 | $8,031 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2012 |
Income tax expense difference arising due to provision for income taxes at company's income tax rate to the provision for income taxes at the U.S. federal income tax rate | |
Tax benefit resulting from changes in state tax laws | $0.90 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | Jul. 08, 2013 | Sep. 28, 2013 | Oct. 07, 2013 | Oct. 07, 2013 |
In Millions, unless otherwise specified | Pirate Brands Acquisition | Revolving credit loans | Subsequent event | Subsequent event |
Rickland Orchards LLC | ||||
Natural Instincts LLC | ||||
Subsequent events | ||||
Purchase price of business acquisition | $57.50 | |||
Purchase price in cash | 195.4 | 37.4 | ||
Purchase price in stock | 20.1 | |||
Available borrowing capacity | $269.50 | $229.50 |