Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 12, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Core-Mark Holding Company, Inc. | ||
Trading Symbol | CORE | ||
Entity Central Index Key | 1,318,084 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Common Stock, Shares Outstanding | 23,142,308 | ||
Entity Public Float | $ 1,331,526,257 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 12.5 | $ 14.4 |
Restricted cash | 8.5 | 13 |
Accounts receivable, net of allowance for doubtful accounts of $10.9 and $10.8 at December 31, 2015 and December 31, 2014, respectively | 272.7 | 245.3 |
Other receivables, net | 69.4 | 61.5 |
Inventories, net | 407.4 | 417.8 |
Deposits and prepayments | 65 | 43.7 |
Deferred income taxes | 1.8 | 8.4 |
Total current assets | 837.3 | 804.1 |
Property and equipment, net | 159.5 | 148.9 |
Goodwill | 22.9 | 22.9 |
Other intangible assets, net | 29.5 | 22.6 |
Other non-current assets, net | 28.1 | 31.1 |
Total assets | 1,077.3 | 1,029.6 |
Accounts payable | ||
Accounts payable | 129.6 | 128.4 |
Book overdrafts | 29.2 | 29.1 |
Cigarette and tobacco taxes payable | 193.6 | 187.3 |
Accrued liabilities | 106.9 | 93.4 |
Deferred income taxes | 0.3 | 0.3 |
Total current liabilities | 459.6 | 438.5 |
Long-term debt | 60.4 | 68.2 |
Deferred income taxes | 18.6 | 16.2 |
Other long-term liabilities | 10.6 | 11.9 |
Claims liabilities, net | 26.6 | 27.5 |
Pension liabilities | 7.5 | 6 |
Total liabilities | $ 583.3 | $ 568.3 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value (100,000,000 shares authorized, 25,976,677 and 25,847,269 shares issued; 23,058,335 and 23,080,110 shares outstanding at December 31, 2015 and December 31, 2014, respectively) | $ 0.3 | $ 0.3 |
Additional paid-in capital | 271.8 | 263.8 |
Treasury stock at cost (2,918,342 and 2,767,159 shares of common stock at December 31, 2015 and December 31, 2014, respectively) | (61.8) | (52.6) |
Retained earnings | 300 | 261.4 |
Accumulated other comprehensive loss | (16.3) | (11.6) |
Total stockholders’ equity | 494 | 461.3 |
Total liabilities and stockholders’ equity | $ 1,077.3 | $ 1,029.6 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Allowance for doubtful accounts | $ 10.9 | $ 10.8 |
Stockholders’ equity: | ||
Common stock, par value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | |
Common stock, shares issued | 25,976,677 | 25,847,269 |
Common stock, shares outstanding | 23,058,335 | 23,080,110 |
Treasury stock, shares | 2,918,342 | 2,767,159 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||||||||||
Net sales | $ 2,815.1 | $ 2,991.6 | $ 2,810.4 | $ 2,452.3 | $ 2,608.6 | $ 2,747.4 | $ 2,623.2 | $ 2,300.9 | $ 11,069.4 | $ 10,280.1 | $ 9,767.6 |
Cost of goods sold | 2,645 | 2,820 | 2,651.5 | 2,315 | 2,454 | 2,596 | 2,479.9 | 2,176.5 | 10,431.5 | 9,706.4 | 9,230.5 |
Gross profit | 170.1 | 171.6 | 158.9 | 137.3 | 154.6 | 151.4 | 143.3 | 124.4 | 637.9 | 573.7 | 537.1 |
Warehousing and distribution expenses | 91.7 | 92.8 | 88.6 | 79.5 | 81.5 | 83.5 | 78.1 | 75.3 | 352.6 | 318.4 | 297.1 |
Selling, general and administrative expenses | 48.4 | 52.8 | 47.5 | 47.3 | 49.5 | 47 | 44 | 43.9 | 196 | 184.4 | 168.3 |
Amortization of intangible assets | 0.8 | 0.6 | 0.6 | 0.6 | 0.6 | 0.7 | 0.7 | 0.6 | 2.6 | 2.6 | 2.7 |
Total operating expenses | 140.9 | 146.2 | 136.7 | 127.4 | 131.6 | 131.2 | 122.8 | 119.8 | 551.2 | 505.4 | 468.1 |
Income from operations | 29.2 | 25.4 | 22.2 | 9.9 | 23 | 20.2 | 20.5 | 4.6 | 86.7 | 68.3 | 69 |
Interest expense | (0.6) | (0.6) | (0.7) | (0.6) | (0.6) | (0.5) | (0.6) | (0.7) | (2.5) | (2.4) | (2.7) |
Interest income | 0.1 | 0.1 | 0.1 | 0.2 | 0.2 | 0.1 | 0.2 | 0.1 | 0.5 | 0.6 | 0.5 |
Foreign currency transaction losses, net | (0.5) | (0.7) | (0.2) | (0.4) | (0.1) | 0.2 | (0.2) | 0 | (1.8) | (0.1) | (0.8) |
Income before income taxes | 28.2 | 24.2 | 21.4 | 9.1 | 22.5 | 20 | 19.9 | 4 | 82.9 | 66.4 | 66 |
Provision for income taxes | (10.5) | (9.1) | (8.2) | (3.6) | (7.9) | (6.3) | (7.9) | (1.6) | (31.4) | (23.7) | (24.4) |
Net income | $ 17.7 | $ 15.1 | $ 13.2 | $ 5.5 | $ 14.6 | $ 13.7 | $ 12 | $ 2.4 | $ 51.5 | $ 42.7 | $ 41.6 |
Basic net income per common share (in dollars per share) | $ 0.77 | $ 0.65 | $ 0.57 | $ 0.24 | $ 0.63 | $ 0.59 | $ 0.52 | $ 0.11 | $ 2.23 | $ 1.85 | $ 1.81 |
Diluted net income per common share (in dollars per share) | $ 0.75 | $ 0.65 | $ 0.57 | $ 0.24 | $ 0.62 | $ 0.59 | $ 0.52 | $ 0.10 | $ 2.21 | $ 1.83 | $ 1.79 |
Basic weighted-average shares (in shares) | 23.2 | 23.1 | 23.1 | 23.2 | 23.1 | 23.1 | 23.1 | 23 | 23.1 | 23.1 | 23 |
Diluted weighted-average shares (in shares) | 23.4 | 23.3 | 23.3 | 23.3 | 23.4 | 23.3 | 23.2 | 23.2 | 23.3 | 23.3 | 23.2 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 51.5 | $ 42.7 | $ 41.6 |
Other comprehensive (loss) income, net of tax: | |||
Defined benefit plan adjustments | 0.2 | (2.9) | 2.4 |
Foreign currency translation loss | (4.9) | (3) | (1.5) |
Other comprehensive (loss) income, net of tax | (4.7) | (5.9) | 0.9 |
Comprehensive income | $ 46.8 | $ 36.8 | $ 42.5 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock Issued | Additional Paid-in | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning Balance, Shares, Issued at Dec. 31, 2012 | 25.2 | 2.2 | ||||
Beginning Balance, Stockholders' Equity at Dec. 31, 2012 | $ 400.2 | $ 0.3 | $ 249 | $ (37.4) | $ 194.9 | $ (6.6) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 41.6 | 41.6 | ||||
Other comprehensive (loss) income, net of tax | 0.9 | 0.9 | ||||
Dividends declared | (7) | (7) | ||||
Stock-based compensation expense | 4.6 | 4.6 | ||||
Cash proceeds from exercise of common stock options and warrants, shares | 0.2 | |||||
Cash proceeds from exercise of common stock options and warrants, value | 2.4 | 2.4 | ||||
Excess tax deductions associated with stock-based compensation | 2.1 | 2.1 | ||||
Issuance of stock based instruments, net of shares withheld for employee taxes, shares | 0.2 | |||||
Issuance of stock based instruments, net of shares withheld for employee taxes, value | (3.6) | (3.6) | ||||
Repurchase of common stock, shares | (0.4) | |||||
Repurchase of common stock, value | (7.2) | $ (7.2) | ||||
Ending Balance, Shares, Issued at Dec. 31, 2013 | 25.6 | 2.6 | ||||
Ending Balance, Stockholders' Equity at Dec. 31, 2013 | 434 | $ 0.3 | 254.5 | $ (44.6) | 229.5 | (5.7) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 42.7 | 42.7 | ||||
Other comprehensive (loss) income, net of tax | (5.9) | (5.9) | ||||
Dividends declared | (10.8) | (10.8) | ||||
Stock-based compensation expense | 6.1 | 6.1 | ||||
Cash proceeds from exercise of common stock options and warrants, shares | 0.1 | |||||
Cash proceeds from exercise of common stock options and warrants, value | 2.1 | 2.1 | ||||
Excess tax deductions associated with stock-based compensation | 2.8 | 2.8 | ||||
Issuance of stock based instruments, net of shares withheld for employee taxes, shares | 0.1 | |||||
Issuance of stock based instruments, net of shares withheld for employee taxes, value | (1.7) | (1.7) | ||||
Repurchase of common stock, shares | (0.2) | |||||
Repurchase of common stock, value | (8) | $ (8) | ||||
Ending Balance, Shares, Issued at Dec. 31, 2014 | 25.8 | 2.8 | ||||
Ending Balance, Stockholders' Equity at Dec. 31, 2014 | 461.3 | $ 0.3 | 263.8 | $ (52.6) | 261.4 | (11.6) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 51.5 | 51.5 | ||||
Other comprehensive (loss) income, net of tax | (4.7) | (4.7) | ||||
Dividends declared | (12.9) | (12.9) | ||||
Stock-based compensation expense | 8.7 | 8.7 | ||||
Cash proceeds from exercise of common stock options and warrants, shares | 0.1 | |||||
Cash proceeds from exercise of common stock options and warrants, value | 0.4 | 0.4 | ||||
Excess tax deductions associated with stock-based compensation | 2.2 | 2.2 | ||||
Issuance of stock based instruments, net of shares withheld for employee taxes, shares | 0.1 | |||||
Issuance of stock based instruments, net of shares withheld for employee taxes, value | (3.3) | (3.3) | ||||
Repurchase of common stock, shares | (0.1) | |||||
Repurchase of common stock, value | (9.2) | $ (9.2) | ||||
Ending Balance, Shares, Issued at Dec. 31, 2015 | 26 | 2.9 | ||||
Ending Balance, Stockholders' Equity at Dec. 31, 2015 | $ 494 | $ 0.3 | $ 271.8 | $ (61.8) | $ 300 | $ (16.3) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 51.5 | $ 42.7 | $ 41.6 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
LIFO and inventory provisions | 2 | 16 | 8.7 |
Amortization of debt issuance costs | 0.3 | 0.3 | 0.4 |
Stock-based compensation expense | 8.7 | 6.1 | 4.6 |
Bad debt expense, net | 1.3 | 2.2 | 1.1 |
Depreciation and amortization | 37.9 | 32 | 27.2 |
Foreign currency transaction losses, net | 1.8 | 0.1 | 0.8 |
Deferred income taxes | 8.9 | (3) | 5 |
Settlement charge and curtailment (gain) | 1.6 | 0 | (0.9) |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (28.1) | (13.8) | (9.6) |
Other receivables, net | (8.9) | (3) | (5.6) |
Inventories, net | 1.5 | (50.6) | (35.4) |
Deposits, prepayments and other non-current assets | (25.9) | 5.7 | (16.5) |
Excess tax deductions associated with stock-based compensation | (2.2) | (2.8) | (2.1) |
Accounts payable | 4 | 20.6 | 16 |
Cigarette and tobacco taxes payable | 13.8 | 9.1 | 19.9 |
Pension, claims, accrued and other long-term liabilities | 9 | 4.9 | 3.9 |
Net cash provided by operating activities | 77.2 | 66.5 | 59.1 |
Cash flows from investing activities: | |||
Acquisition of business, net of cash acquired | (9) | (1) | (3.6) |
Change in restricted cash | 4.5 | (0.9) | (2) |
Additions to property and equipment, net | (30.3) | (53.9) | (18) |
Capitalization of software and related development costs | (8.7) | (5.3) | (0.4) |
Proceeds from sale of fixed assets | 0.3 | 0 | 0 |
Net cash used in investing activities | (43.2) | (61.1) | (24) |
Cash flows from financing activities: | |||
Borrowings (repayments) under revolving credit facility, net | (9.3) | 9.6 | (27.3) |
Dividends paid | (12.8) | (10.7) | (7.1) |
Payments on capital leases | (2.3) | (1.7) | (1) |
Repurchases of common stock | (9.2) | (8) | (7.2) |
Proceeds from exercise of common stock options | 0.4 | 2.1 | 2.4 |
Tax withholdings related to net share settlements of restricted stock units | (3.3) | (1.7) | (3.6) |
Excess tax deductions associated with stock-based compensation | 2.2 | 2.8 | 2.1 |
Increase (decrease) in book overdrafts | 0.1 | 6.2 | (1.8) |
Net cash used in financing activities | (34.2) | (1.4) | (43.5) |
Effects of changes in foreign exchange rates | (1.7) | (0.6) | 0.3 |
Change in cash and cash equivalents | (1.9) | 3.4 | (8.1) |
Cash and cash equivalents, beginning of period | 14.4 | 11 | 19.1 |
Cash and cash equivalents, end of period | 12.5 | 14.4 | 11 |
Cash paid during the period for: | |||
Income taxes paid, net | 26.8 | 22 | 19.5 |
Interest paid | 1.3 | 1.1 | 1.5 |
Unpaid property and equipment purchases included in accrued liabilities | 5.1 | 1.4 | 1.9 |
Non-cash capital lease obligations incurred | $ 5.4 | $ 4.7 | $ 1.2 |
Summary of Company Information
Summary of Company Information | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Company Information | Summary of Company Information Busines s Core-Mark Holding Company, Inc. and subsidiaries (referred to herein as “the Company” or “Core-Mark”) is one of the largest marketers of fresh and broad-line supply solutions to the convenience retail industry in North America. The Company offers a full range of products, marketing programs and technology solutions to approximately 36,500 customer locations in the United States (“U.S.”) and Canada. The Company’s customers include traditional convenience stores, drug stores, grocery stores, liquor stores and other specialty and small format stores that carry convenience products. The Company’s product offering includes cigarettes, other tobacco products, candy, snacks, fast food, groceries, fresh products, dairy, bread, beverages, general merchandise and health and beauty care products. The Company operates a network of 28 distribution centers in the U.S. and Canada (excluding two distribution facilities it operates as a third party logistics provider). Twenty-four of the Company’s distribution centers are located in the U.S. and four are located in Canada. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The consolidated financial statements include Core-Mark and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in the consolidated financial statements. Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company considers the allowance for doubtful accounts, valuation of goodwill and long-lived assets, realizability of deferred income taxes, uncertain tax positions, vendor rebates and promotional allowances, valuation of pension assets and obligations and self-insurance reserves to be those estimates which involve a higher degree of judgment and complexity. Actual results could differ from those estimates. Revenue Recognition The Company recognizes revenue at the point at which the product is delivered and title passes to the customer. The Company includes fees charged to customers for shipping and handling activities in net sales and the related costs in cost of goods sold. Revenues are reported net of customer incentives, discounts and returns, including an allowance for estimated returns. The allowance for sales returns is calculated based on the Company’s returns experience, which has historically not been significant. The Company also earns management service fee revenue from operating third party distribution centers belonging to certain customers. These revenues represented less than 1% of the Company’s total net sales for 2015 , 2014 and 2013 . Service fee revenue is recognized as earned on a monthly basis in accordance with the terms of the management service fee contracts and is included in net sales on the accompanying consolidated statements of operations. Customers ’ Sales Incentives The Company also provides sales allowances or discounts to its customers on a regular basis. These customers’ sales incentives are recorded as a reduction to net sales as the sales incentive is earned by the customer. Additionally, the Company may provide allowances for the customers' commitment to continue using Core-Mark as the supplier, these incentives are known as racking allowances. These allowances may be paid at the inception of the contract or on a periodic basis. Allowances paid at the inception of the contract are capitalized and amortized over the period of the distribution agreement as a reduction to sales. Vendor Rebates and Promotional Allowances Periodic payments from vendors in various forms including rebates, promotional allowances and volume discounts are reflected in the carrying value of the related inventory when earned and in cost of goods sold when the related merchandise is sold. Up-front consideration received from vendors for purchase or other commitments is initially deferred and amortized ratably to cost of goods sold as the performance of the activities specified by the vendor is completed. Cooperative marketing incentives received from vendors to fund specific programs first offset the costs of the program and to the extent the consideration exceeds the costs relating to the program, the excess funds are recorded as reductions to cost of goods sold. These amounts are recorded in the period the related promotional or merchandising programs are provided. Certain vendor incentive promotions require the Company to make assumptions and judgments regarding, for example, the likelihood of achieving market share levels or attaining specified levels of purchases. Vendor incentives are at the discretion of the Company’s vendors and can fluctuate due to changes in vendor strategies and market requirements. Vendor rebates and promotional allowances earned totaled $191.4 million , $162.8 million and $149.8 million in 2015 , 2014 and 2013 , respectively. Excise Taxes The Company is responsible for collecting and remitting state, local and provincial excise taxes on cigarette and other tobacco products. These excise taxes are a significant component of the Company’s net sales and cost of goods sold. In 2015 , 2014 and 2013 , approximately $2.2 billion , $2.1 billion and $2.1 billion , or 20% , 21% and 21% of the Company’s net sales, and approximately 21% , 22% and 22% of its cost of goods sold, respectively, represented excise taxes. Federal excise taxes are levied on the manufacturers who, in turn, pass the tax on to the Company as part of the product cost. As a result, federal excise taxes are not a component of the Company’s excise taxes. Stock-based Compensation The Company accounts for stock-based compensation expense related to restricted stock unit ("RSU") awards, performance shares and stock options based on the grant-date fair value of the awards. For service based awards the Company recognizes the expense using a straight-line method and for performance based awards the Company recognizes the expense ratably based on the achievement of performance conditions. For stock option awards, the Company uses the Black-Scholes option valuation model to determine the fair value ( see Note 13 - Stock Incentive Plans ). Determining the appropriate fair value model and calculating the fair value of stock option awards at the grant date requires considerable judgment, including estimating stock price volatility, expected life of share awards and forfeiture rates. The Company develops its estimates based on historical data and market information, which can change significantly over time. Pension Costs and Other Post-retirement Benefit Costs Pension costs and other post-retirement benefit costs charged to operations are estimated on the basis of annual valuations by an independent actuary. Adjustments arising from plan amendments, changes in assumptions and experience gains and losses are amortized over the expected average remaining service life of the employee group. Plan changes that materially reduce the expected years of future services of current employees or eliminates for a significant number of employees the accrual of defined benefits for some or all of their future services, result in curtailment gains. A curtailment gain first reduces any net loss previously included in accumulated other comprehensive income (loss) (“AOCI”), and to the extent that such a gain exceeds any net loss included in AOCI, it is recorded as a curtailment gain in the Company’s consolidated statement of operations. The Company offers certain plan participants the option to receive a lump sum payment in lieu of future annuity pension benefits. Acceptance of the lump sum payment by plan participants may result in the Company recognizing a settlement charge and an adjustment in the projected benefit plan obligation. The Company recognizes an asset for a plan’s overfunded status or a liability for a plan’s underfunded status on its consolidated balance sheet as of the end of each fiscal year. The Company determines the plan’s funded status by measuring its assets and its obligations and recognizes changes in the funded status of its defined benefit post-retirement plan in the year in which the change occurred ( see Note 11 - Employee Benefit Plans ) . Income Taxes Income taxes are accounted for using the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when the Company does not consider it more likely than not that some portion or all of the deferred tax assets will be realized. A tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. The Company has established an estimated liability for income tax exposures that arise and meet the criteria for accrual. The Company prepares and files tax returns based on its interpretation of tax laws and regulations and records estimates based on these judgments and interpretations. In the normal course of business, the Company’s tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax and interest assessments by these taxing authorities. Inherent uncertainties exist in estimates of tax contingencies due to changes in tax law resulting from legislation, regulation and/or as concluded through the various jurisdictions’ tax court systems. The Company classifies interest and penalties related to income taxes as income tax expense ( see Note 10 - Income Taxes ). Earnings Per Share Basic earnings per share is calculated by dividing net income by the weighted-average number of common shares outstanding during each period, excluding unvested RSUs and performance shares. Diluted earnings per share is calculated by dividing net income by weighted-average shares outstanding including common stock equivalents. Common stock equivalents include stock options, RSUs and performance based awards if the impact is dilutive, using the treasury stock method ( see Note 12 - Earnings Per Share ) . Cash, Cash Equivalents, Restricted Cash and Book Overdrafts Cash and cash equivalents include cash, money market funds and highly liquid investments with original maturities of three months or less. Restricted cash represents funds collected and set aside in trust as required by one of the Canadian provincial taxing authorities to secure amounts payable for cigarette and tobacco excise taxes. The Company had cash book overdrafts of $29.2 million and $29.1 million at December 31, 2015 and 2014 , respectively. Book overdrafts consist primarily of outstanding checks in excess of cash on hand in the corresponding bank accounts at the end of the period. The Company’s policy has been to fund these outstanding checks as they clear with cash held on deposit with other financial institutions or with borrowings under the Company’s revolving credit facility. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable consists of trade receivables from customers. The Company evaluates the collectability of accounts receivable and determines the appropriate allowance for doubtful accounts based on historical experience and a review of specific customer accounts. Account balances are charged against the allowance when collection efforts have been exhausted and the receivable is deemed uncollectible ( see Note 4 - Other Consolidated Balance Sheet Accounts Detail ). Other Receivables Other receivables consist primarily of amounts due from vendors for promotional and other incentives, which are accrued as earned. The Company evaluates the collectability of amounts due from vendors and determines the appropriate allowance for doubtful accounts based on historical experience and a review of specific amounts outstanding ( see Note 4 - Other Consolidated Balance Sheet Accounts Detail ). Inventories Inventories consist of finished goods, including cigarettes and other tobacco products, food and other consumable products held for re-sale and are valued at the lower of cost or market. In the Company’s U.S. divisions, cost is determined primarily on a last-in, first-out (“LIFO”) basis. The Company uses the link-chain dollar value LIFO method. The inventory price index computation ("IPIC") is used to calculate LIFO inflation indices for which the LIFO inflation source is the producer price indices ("PPI") published by the US Bureau of Labor Statistics ("BLS"). The Company uses the IPIC pooling method for which LIFO pools are established for each PPI in accordance with current regulations. When the Company is aware of material price increases or decreases from manufacturers, the Company estimates the PPI for the respective period, if it determines the price increase is not fully reflected in the PPI, in order to more accurately reflect inflation rates. Under the LIFO method, current costs of goods sold are matched against current sales. Inventories in the Company’s Canadian divisions are valued on a first-in, first-out ("FIFO") basis, as LIFO is not a permitted inventory valuation method in Canada. Approximately 88.0% and 85.0% of the Company’s inventory was valued on a LIFO basis at December 31, 2015 and 2014 , respectively. The Company reduces inventory value for spoiled, aged and unrecoverable inventory based on amounts on-hand and historical experience ( see Note 5 - Inventories ). Property and Equipment Property and equipment are recorded at cost, net of accumulated depreciation and amortization. Depreciation and amortization on new purchases are computed using the straight-line method over the assets’ estimated useful lives. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life of the property or the term of the lease including available renewal option terms if it is reasonably assured that those options will be exercised. Upon retirement or sale, the cost and related accumulated depreciation of the assets are removed and any related gain or loss is reflected in the consolidated statements of operations. Maintenance and repairs are charged to expense as incurred (s ee Note 6 - Property and Equipment ). The Company uses the following depreciable lives for its property and equipment: Useful Life in Years Office furniture and equipment 3-10 Delivery equipment 4-10 Warehouse equipment 5-15 Leasehold improvements 3-25 Buildings 15-25 Other Long-lived Assets Intangible assets with definite lives are generally amortized on a straight-line basis over the following lives: Useful Life in Years Customer relationships 10-15 Non-competition agreements 1-5 Software 3-7 The Company reviews its long-lived assets for indicators of impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. An impairment of long-lived assets exists when the carrying amount of a long-lived asset, or asset group, exceeds its fair value, and impairment losses are recorded when the carrying amount of the impaired asset is not recoverable. Recoverability is determined by comparing the carrying amount of the asset (or asset group) to the undiscounted cash flows which are expected to be generated from its use. In 2015, the Company assessed its asset groups and determined it has six asset groups. This change resulted from a reassessment of independently identifiable cash flows within the Company given the organic growth in the business as well as the addition of national chain customers. During 2015 , 2014 and 2013 , the Company did not record impairment charges related to long-lived assets ( see Note 6 - Property and Equipment and Note 7 - Goodwill and Other Intangible Assets ). Goodwill Goodwill represents the excess of cost over the fair value of net assets acquired in a business combination. Goodwill is not amortized. The Company tests goodwill for impairment annually as of October 1 or whenever events or circumstances indicate that it is more likely than not that the fair value of a reporting unit is below its carrying amount. The Company’s reporting units are its U.S. operations and Canadian operations. Whenever events or circumstances change, the Company assesses the related qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. The tests to evaluate goodwill for impairment are performed at the reporting unit level. In the first step of the quantitative impairment test, the Company compares the fair value of the reporting unit to its carrying value. If the fair value of the reporting unit is less than its carrying value, the Company performs a second step to determine the implied fair value of goodwill associated with the reporting unit. If the carrying value of goodwill exceeds the implied fair value of goodwill, such excess represents the amount of goodwill impairment for which an impairment loss would be recorded. Determining the fair value of a reporting unit involves the use of significant estimates and assumptions. The estimated fair value of each reporting unit is based on the discounted cash flow method, which is based on historical and forecasted amounts specific to each reporting unit and considers net sales, gross profit, income from operations and cash flows and general economic and market conditions, as well as the impact of planned business and operational strategies and other estimates and assumptions for future growth rates, working capital and capital expenditures. The Company bases its fair value estimates on assumptions it believes to be reasonable at the time, but such assumptions are subject to inherent uncertainty. Measuring the fair value of reporting units constitutes a Level 3 measurement under the fair value hierarchy. There has been no impairment of goodwill for any periods presented ( see Note 7 - Goodwill and Other Intangible Assets ) . Computer Software Developed or Obtained for Internal Use The Company accounts for computer software systems, namely its proprietary Distribution Center Management System (“DCMS”), and software purchased from third-party vendors, using certain criteria under which costs associated with this software are either expensed or capitalized and amortized over periods from three to seven years. During 2015 , 2014 and 2013 the Company capitalized approximately $9.5 million , $4.4 million and $2.0 million , respectively, of costs related to software developed or obtained for internal use ( see Note 7 - Goodwill and Other Intangible Assets ). Debt Issuance Costs Debt issuance costs are deferred and amortized as interest expense over the term of the related debt agreement on a straight-line basis, which approximates the effective interest method. Debt issuance costs are included in deposits and prepayments and other non-current assets on the accompanying consolidated balance sheets. Total unamortized debt issuance costs were $1.2 million and $1.1 million at December 31, 2015 and 2014 , respectively ( see Note 8 - Long-term Debt ). Claims Liabilities and Insurance Recoverables The Company maintains reserves related to health and welfare, workers’ compensation, auto and general liability programs that are principally self-insured. The Company currently has a per-claim deductible of $500,000 for its workers’ compensation, general and auto liability self-insurance programs and a per person annual claim deductible of $250,000 for its health and welfare program. The Company purchases insurance to cover the claims that exceed the deductible up to policy limits. Self-insured reserves are for pending or future claims that fall outside the policy and reserves include an estimate of expected settlements on pending claims and a provision for claims incurred but not reported. Estimates for workers’ compensation, auto and general liability insurance are based on the Company’s assessment of potential liability using an annual actuarial analysis of available information with respect to pending claims, historical experience and current cost trends. Reserves for claims under these programs are included in accrued liabilities (current portion) and claims liabilities, net of current portion on the accompanying consolidated balance sheets. Claims liabilities and the related recoverables from insurance carriers for estimated claims in excess of the deductible and other insured events are presented in their gross amounts on the accompanying consolidated balance sheets because there is no right of offset. The carrying values of claims liabilities and insurance recoverables are not discounted. Insurance recoverables are included in other receivables, net and other non-current assets, net. The Company had gross liabilities for health and welfare, workers’ compensation, auto and general liability self-insurance obligations in the amounts of $26.6 million long-term and $11.9 million short-term at December 31, 2015 , and $27.5 million long-term and $10.4 million short-term at December 31, 2014 . The Company’s liabilities net of insurance recoverables were $12.2 million long-term and $10.4 million short-term at December 31, 2015 , and $10.9 million long-term and $9.0 million short-term at December 31, 2014 . Foreign Currency Translation The operating assets and liabilities of the Company’s Canadian operations, whose functional currency is the Canadian dollar, are translated to U.S. dollars at exchange rates in effect at period-end. Translation gains and losses are recorded in AOCI as a component of stockholders’ equity. Revenue and expenses from Canadian operations are translated using the monthly average exchange rates in effect during the period in which the transactions occur. The Company also recognizes gains or losses on foreign currency exchange transactions between its Canadian and U.S. operations, net of applicable income taxes, in the consolidated statements of operations. We currently do not hedge our Canadian foreign currency cash flow. Total Comprehensive Income Comprehensive income consists of net income and other transactions recorded directly to stockholders’ equity that are excluded from net income. Other comprehensive income is comprised of defined benefit plan adjustments and foreign currency translation adjustments related to the Company’s foreign operations in Canada, whose functional currency is not the U.S. dollar ( see Note 15 - Other Comprehensive Income (Loss) ) . Fair Value Measurements The Company’s financial assets and liabilities are recognized or disclosed at fair value in the financial statements on a recurring basis. The carrying amount of cash equivalents, restricted cash, trade accounts receivable, other receivables, trade accounts payable, cigarette and tobacco taxes payable and other accrued liabilities approximates fair value because of the short maturity of these financial instruments. The carrying amount of the Company’s variable rate debt approximates fair value. The Company calculates the fair value of its pension plan assets based on assumptions that market participants would use in pricing the assets ( see Note 11 - Employee Benefit Plans ). The Company uses a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value and gives precedence to observable inputs in determining fair value. An instrument’s level within the hierarchy is based on the lowest level of any significant input to the fair value measurement. The following levels were established for each input: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 - Unobservable inputs for the asset or liability, which reflect the Company’s own assumptions about what market participants would assume when pricing the asset or liability. Business Combinations The Company accounts for all business combinations using the acquisition method of accounting, which allocates the fair value of the purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions. Management may further adjust the acquisition date fair values for a period of up to one year from the date of acquisition. Acquisition related expenses and transaction costs associated with business combinations are expensed as incurred ( see Note 3 - Acquisition ). Risks and Concentrations Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash investments, accounts receivable and other receivables. The Company places its cash and cash equivalents in short-term instruments with high quality financial institutions and limits the amount of credit exposure in any one financial instrument. The Company pursues amounts and incentives due from vendors in the normal course of business and is often allowed to deduct these amounts and incentives from payments made to vendors. A credit review is completed for new customers and ongoing credit evaluations of each customer’s financial condition are performed periodically, with reserves maintained for potential credit losses. Credit limits given to customers are based on a risk assessment of their ability to pay and other factors. Accounts receivable are typically not collateralized, but the Company may require prepayments or other guarantees whenever deemed necessary. Alimentation Couche-Tard, Inc. (“Couche-Tard”), the Company’s largest customer, accounted for 14.2% , 14.5% and 14.7% of total net sales in 2015 , 2014 and 2013 , respectively. In addition, no single customer accounted for 10% or more of accounts receivables at December 31, 2015 and 2014 . The Company has two significant suppliers: Philip Morris USA, Inc. and R.J. Reynolds Tobacco Company. Product purchases from Philip Morris USA, Inc. accounted for approximately 29% , 28% and 28% of total product purchases in 2015 , 2014 and 2013 , respectively. Product purchases from R.J. Reynolds Tobacco Company were approximately 17% , 14% and 14% of total product purchases in 2015 , 2014 and 2013 , respectively. Cigarette sales represented 68.0% , 67.5% and 68.0% of net sales in 2015 , 2014 and 2013 , respectively, and contributed 28.3% , 27.1% and 30.0% of gross profit in 2015 , 2014 and 2013 , respectively. Although cigarettes represent a significant portion of the Company’s total net sales, the majority of its gross profit is generated from food/non-food products. Recent Accounting Standards or Updates Not Yet Effective On May 28, 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09 (ASU 2014-09), Revenue from Contracts with Customers: Topic 606 (“ASU 2014-09”), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. This standard is effective for the Company beginning in 2017 and allows for either full retrospective adoption or modified retrospective adoption with cumulative effect recognized at the date of initial adoption. Early adoption of this standard is not allowed. The Company is currently evaluating the impact of the adoption of ASU 2014-09 on its consolidated financial statements. On May 7, 2015, the FASB issued ASU No. 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent): Topic 820 (“ASU 2015-07”). The standard removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The Company does not hold any such investments on its consolidated balance sheet, however, the assets held in a group trust for the Company’s defined benefit pension plan includes equities and corporate bonds. ASU 2015-07 requires retrospective adoption and is effective for the Company beginning in 2016. The Company has determined that the adoption of ASU 2015-07 will not have a material impact on its consolidated financial statements. On August 18, 2015, the FASB issued ASU No. 2015-15, Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of -Credit Arrangements: Subtopic 835-30 (“ASU 2015-15”). The guidance states that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. ASU 2015-15 requires retrospective application and is effective for annual periods beginning after December 15, 2015. The Company has determined the adoption of ASU 2015-15 will not have a material impact on its consolidated financial statements. On November 20, 2015, the FASB issued ASU No.2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes: Topic 740 (“ASU 2015-17”). The new guidance requires entities with a classified balance sheet to present all deferred tax assets and liabilities as non-current. ASU 2015-17 requires either prospective or retrospective application and is effective for annual periods beginning after December 15, 2016. The adoption of ASU 2015-17 will not have a material impact on the presentation of its consolidated financial statements. On January 5, 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities: Subtopic 825-10 (“ASU 2016-01”). The new guidance enhances the reporting model for financial instruments, which includes amendments to address aspects of recognition, measurement, presentation and disclosure. ASU 2016-01 is effective for annual periods beginning after December 15, 2017. The Company is currently evaluating the impact ASU 2016-01 will have on its consolidated financial statements. |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition Acquisition of Karrys Bros., Limited. On February 23, 2015 , the Company acquired substantially all of the assets of Karrys Bros., Limited (“Karrys Bros.”), a regional convenience wholesaler servicing customers in Ontario, Canada, and the surrounding provinces, for cash consideration of approximately $8.0 million , or $10.0 million (Canadian dollars). The Karrys Bros. operations have been integrated into the Company’s existing distribution center in Toronto and have provided the Company with the opportunity to increase its market share in eastern Canada. The purchase price allocation of the acquired assets and liabilities assumed was as follows (in millions): February 23, 2015 Accounts receivable $ 3.9 Inventory 3.9 Property and equipment 2.3 Liabilities (2.1 ) Total consideration $ 8.0 Transaction and integration costs in connection with the acquisition of Karrys Bros. were approximately $1.7 million for the year ended December 31, 2015 . The results of operations of Karrys Bros. have been included in the Company’s consolidated statements of operations and comprehensive income since the acquisition date. The Company does not consider the Karrys Bros. acquisition to be a material business combination and therefore has not disclosed pro-forma results of operations for the acquired business. Acquisition of J.T. Davenport & Sons, Inc. On December 17, 2012, the Company acquired J.T. Davenport & Sons, Inc. ("Davenport"), a convenience wholesaler based in North Carolina, which is now a subsidiary of Core-Mark. This acquisition increased the Company's market presence primarily in the Southeastern U.S. and further enhanced the Company's ability to cost effectively service national and regional retailers. Total purchase consideration to acquire Davenport was approximately $41.2 million . The total purchase consideration included a $4.0 million indemnity holdback for any post-closing liabilities to be released, less any indemnity claims, to the former owners of Davenport in equal installments over four years on the anniversary date of the closing of the acquisition. The Company paid $1.0 million of the holdback in December 2015 and there was $1.0 million of the holdback remaining as of December 31, 2015 . |
Other Consolidated Balance Shee
Other Consolidated Balance Sheet Accounts Detail | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Other Consolidated Balance Sheet Accounts Detail | Other Consolidated Balance Sheet Accounts Detail Allowance for Doubtful Accounts, Accounts Receivable The changes in the allowance for doubtful accounts due from customers consist of the following (in millions): Year Ended December 31, 2015 2014 2013 Balance, beginning of year $ 10.8 $ 9.4 $ 10.9 Net additions charged to operations (1) 1.3 2.2 1.1 Less: Write-offs and adjustments (1.2 ) (0.8 ) (2.6 ) Balance, end of year $ 10.9 $ 10.8 $ 9.4 ______________________________________________ (1) The net additions to the allowance for doubtful accounts were recognized in the consolidated statements of operations as a component of the Company’s selling, general and administrative expenses. Other Receivables, Net Other receivables, net consist of the following (in millions): December 31, 2015 December 31, 2014 Vendor receivables, net $ 59.0 $ 46.0 Insurance recoverables, current 1.5 1.4 Other miscellaneous receivables (1) 8.9 14.1 Total other receivables, net $ 69.4 $ 61.5 ______________________________________________ (1) Other miscellaneous receivables include amounts related primarily to notes receivables, miscellaneous tax receivables, receivables from the Company’s third party logistics customers, and other miscellaneous receivables. Deposits and Prepayments Deposits and prepayments consist of the following (in millions): December 31, 2015 December 31, 2014 Deposits (1) $ 4.7 $ 4.3 Prepaid taxes 10.6 4.1 Vendor prepayments 34.1 20.7 Racking allowances, current 6.4 6.4 Other prepayments (2) 9.2 8.2 Total deposits and prepayments $ 65.0 $ 43.7 ______________________________________________ (1) Deposits include amounts related primarily to cigarette stamps and workers’ compensation claims. (2) Other prepayments include prepayments relating to insurance policies, software licenses, rent and other miscellaneous prepayments. Other Non-current Assets, Net Other non-current assets, net of current portion, consist of the following (in millions): December 31, 2015 December 31, 2014 Insurance recoverables $ 14.4 $ 16.6 Debt issuance costs 0.9 0.8 Insurance deposits 2.9 4.0 Racking allowances, net 6.5 5.5 Other assets 3.4 4.2 Total other non-current assets, net $ 28.1 $ 31.1 Accrued Liabilities Accrued liabilities consist of the following (in millions): December 31, 2015 December 31, 2014 Accrued payroll, retirement and other benefits (1) $ 29.9 $ 32.5 Claims liabilities, current 11.9 10.4 Accrued customer incentives payable 20.3 18.2 Indirect taxes 7.3 7.2 Customer advances 11.0 5.1 Other accrued expenses (2) 26.5 20.0 Total accrued liabilities $ 106.9 $ 93.4 ______________________________________________ (1) The Company’s accrued payroll, retirement and other benefits include accruals for vacation, bonuses, wages, 401(k) benefit matching and the current portion of pension and post-retirement benefit obligations. (2) The Company’s other accrued expenses include accruals for goods and services, lease liabilities, construction in process, legal expenses, and other miscellaneous accruals. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following (in millions): December 31, 2015 December 31, 2014 Inventories at FIFO, net of reserves $ 524.6 $ 533.1 Less: LIFO reserve (117.2 ) (115.3 ) Total inventories at LIFO, net of reserves $ 407.4 $ 417.8 During periods of rising prices, the LIFO method of costing inventories generally results in higher current costs being charged against income while lower costs are retained in inventories. Conversely, during periods of decreasing prices, the LIFO method of costing inventories generally results in lower current costs being charged against income and higher stated inventories. If the FIFO method had been used for valuing inventories in the U.S., inventories would have been approximately $117.2 million and $115.3 million higher at December 31, 2015 and 2014 , respectively. The Company recorded LIFO expense of $1.9 million , $16.3 million and $8.7 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. The Company had a decrement in certain of its LIFO inventory layers of $12.2 million and $4.6 million in 2015 and 2014 , respectively, which had the effect of reducing its LIFO expense by $0.7 million in 2015 and $0.3 million in 2014 . |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consist of the following (in millions): December 31, 2015 December 31, 2014 Delivery, warehouse and office equipment (1) $ 235.3 $ 208.4 Leasehold improvements 54.4 44.3 Land and buildings (2) 28.9 27.9 Construction in progress 0.8 5.2 319.4 285.8 Less: Accumulated depreciation and amortization (159.9 ) (136.9 ) Total property and equipment, net $ 159.5 $ 148.9 ______________________________________________ (1) Includes equipment capital leases of $13.4 million for 2015 and $8.0 million for 2014 . (2) Includes $4.8 million for a capital lease related to a warehouse facility in both 2015 and 2014 . Depreciation and amortization expenses related to property and equipment were $26.0 million , $21.5 million and $20.0 million for 2015 , 2014 and 2013 , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill Goodwill represents the excess of the purchase consideration of an acquired business over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed in certain business combinations in earlier years. The carrying amounts for goodwill during 2015 and 2014 were $22.9 million . The Company did not record any impairment charges related to goodwill during the years ended December 31, 2015 and 2014 . Other Intangible Assets The carrying amount and accumulated amortization of other intangible assets as of December 31, 2015 and 2014 are as follows (in millions): December 31, 2015 December 31, 2014 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Customer relationships $ 21.1 $ (7.3 ) $ 13.8 $ 21.1 $ (5.6 ) $ 15.5 Non-competition agreements 3.2 (2.9 ) 0.3 3.2 (2.4 ) 0.8 Internally developed and other purchased software 25.8 (10.4 ) 15.4 16.3 (10.0 ) 6.3 Total other intangible assets $ 50.1 $ (20.6 ) $ 29.5 $ 40.6 $ (18.0 ) $ 22.6 The amortization of intangible assets recorded in the consolidated statements of operations was $2.6 million , $2.6 million and $2.7 million in 2015 , 2014 and 2013 , respectively. Estimated future amortization expense for intangible assets is as follows (in millions): Year ending December 31, 2016 $ 4.1 2017 4.0 2018 3.7 2019 3.6 2020 3.6 |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt Total long-term debt consists of the following (in millions): December 31, December 31, 2015 2014 Amounts borrowed (Credit Facility) $ 47.0 $ 55.9 Obligations under capital leases (Note 9) 13.4 12.3 Total long-term debt $ 60.4 $ 68.2 The Company has a revolving credit facility (“Credit Facility”) with a capacity of $200 million as of December 31, 2015 . The Credit Facility has an expansion feature which can be increased up to an additional $100 million , limited by a borrowing base primarily consisting of eligible accounts receivable and inventories. All obligations under the Credit Facility are secured by first priority liens on substantially all of the Company’s present and future assets. The terms of the Credit Facility permit prepayment without penalty at any time (subject to customary breakage costs with respect to London Interbank Offer Rate ("LIBOR") or Canadian Dollar Offer Rate ("CDOR") based loans prepaid prior to the end of an interest period). On May 21, 2015 , the Company entered into a sixth amendment to the Credit Facility (the "Sixth Amendment"), which extended the term of the Credit Facility from May 2018 to May 2020 . The Sixth Amendment fixed the unused facility fee at 25 basis points and provided for quarterly borrowing base reporting. The margin added to the LIBOR or CDOR rate remains at a range of 125 to 175 basis points. In addition, the Sixth Amendment raised and reset the baskets for stock repurchases in aggregate of $75.0 million , not to exceed $20.0 million in any year, an aggregate of $100.0 million for dividends and up to $150.0 million for permitted acquisitions. As of December 31, 2015 , the remaining balances under the Credit Facility for stock repurchases, dividends, and permitted acquisitions were $71.8 million , $90.3 million and $150.0 million , respectively. On January 11, 2016 , the Company entered into a seventh amendment to the Credit Facility (the "Seventh Amendment"), which increased its Credit Facility from $200 million to $300 million . The Seventh Amendment also includes an expansion feature that gives the Company the option to increase the size of the Credit Facility to a total of $400 million , if exercised. The Company incurred fees of approximately $0.4 million in connection with the amendments. The Credit Facility contains restrictive covenants, including among others, limitations on dividends and other restricted payments, other indebtedness, liens, investments and acquisitions and certain asset sales. The Company identified that the total amount of its capital lease obligations exceeded the maximum specified in the agreement’s restrictive covenant for capital leases as of December 31, 2015 . The Seventh Amendment resolved this by waiving the prior technical default and increasing the limit on the restrictive covenant for capital leases. The Company was in compliance with all other covenants under the Credit Facility as of December 31, 2015 . Amounts borrowed, outstanding letters of credit and amounts available to borrow, net of certain reserves required under the Credit Facility, were as follows (in millions): December 31, December 31, 2015 2014 Amounts borrowed $ 47.0 $ 55.9 Outstanding letters of credit 18.5 17.4 Amounts available to borrow (1) 123.9 114.8 ______________________________________________ (1) Excluding $100 million expansion feature. Average borrowings during the years ended December 31, 2015 and 2014 were $39.6 million and $14.8 million , respectively, with amounts borrowed at any one time during the years then ended ranging from zero to $120.9 million and zero to $80.3 million , respectively. The weighted-average interest rate on the Credit Facility for both the years ended December 31, 2015 and 2014 was 1.6% . The weighted-average interest rate is calculated based on the daily cost of borrowing, reflecting a blend of prime and LIBOR rates. The Company paid fees for unused credit facility and letter of credit participation, which are included in interest expense, of $0.6 million , $0.7 million , and $0.8 million for 2015 , 2014 and 2013 , respectively. The Company recorded charges related to amortization of debt issuance costs, which are included in interest expense, of $0.3 million , $0.3 million , and $0.4 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Unamortized debt issuance costs were $1.2 million and $1.1 million as of December 31, 2015 and 2014 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Commitments The Company enters into purchase commitments in the ordinary course of business. The Company had purchase obligations of $43.1 million and $40.1 million as of December 31, 2015 and 2014 , respectively, related primarily to purchases of compressed natural gas for our trucking fleet, delivery and warehouse equipment and computer software and services. Purchase orders for the purchase of inventory and other services are not included in the purchase obligations as of December 31, 2015 and 2014 , respectively, because purchase orders represent authorizations to purchase rather than binding agreements. For purposes of this commitment, contractual obligations for purchase of goods or services are defined as agreements that are enforceable and legally binding and that specify all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. The Company’s purchase orders are based on its current inventory needs and are fulfilled by its suppliers within short time periods. The Company also enters into contracts for outsourced services; however, the obligations under these contracts are not significant and the contracts generally contain clauses allowing for cancellation without significant penalty. Operating Leases The Company leases most of its sales and warehouse facilities and a significant number of trucks, vans and certain equipment under operating lease agreements expiring at various dates through 2029 , excluding renewal options. Rent expense is recorded on a straight-line basis over the term of the lease, including available renewal option terms, if it is reasonably assured that the renewal options will be exercised. The operating leases generally require the Company to pay taxes, maintenance and insurance. In most instances, the Company expects the operating leases that expire will be renewed or replaced in the normal course of business. Future minimum rental payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year and excluding contracted vehicle maintenance costs) were as follows as of December 31, 2015 (in millions): Year ending December 31, 2016 $ 44.7 2017 43.0 2018 39.9 2019 35.7 2020 30.1 2021 and thereafter 91.7 Total $ 285.1 For 2015 , 2014 and 2013 , rental expenses for operating and month-to-month leases, including contracted vehicle maintenance costs, were $57.9 million , $50.4 million and $45.7 million , respectively. Capital Leases As of December 31, 2015 and 2014 , the Company had approximately $15.6 million and $14.0 million , respectively, in capital lease obligations, related to a warehouse facility, refrigeration and other office and warehouse equipment with lease agreements expiring at various dates through 2027 , excluding renewal options. Future minimum lease payments under non-cancelable capital leases were as follows as of December 31, 2015 (in millions): Year ending December 31, 2016 $ 3.1 2017 2.5 2018 2.3 2019 2.2 2020 1.9 2021 and thereafter 7.6 Total 19.6 Less: Interest (4.0 ) Present value of future minimum lease payments 15.6 Less: current portion (2.2 ) Non-current portion $ 13.4 Contingencies Off-Balance Sheet Arrangements Letter of Credit Commitments. As of December 31, 2015 , the Company’s standby letters of credit issued under the Company’s Credit Facility were $ 18.5 million related primarily to casualty insurance. The majority of the standby letters of credit mature in one year. However, in the ordinary course of business, the Company will continue to renew or modify the terms of the letters of credit to support business requirements. The letters of credit are contingent liabilities, supported by the Company’s line of credit, and are not reflected on the consolidated balance sheets. Litigation The Company and its insurers are plaintiffs in a lawsuit against Sonitrol Corporation. The case arose from the December 21, 2002 arson fire at the Denver warehouse, in which Sonitrol failed to detect and respond to a four-hour burglary and subsequent arson. In 2010 , a jury found in favor of the Company and its insurers. Sonitrol appealed the judgment to the Colorado Appellate Court and on July 19, 2012 , the Appellate Court upheld the trial court’s ruling on two of the three issues being appealed but set aside the judgment and remanded the case back to the District Court for trial on the sole issue of damages. On April 29, 2013 , the Colorado Supreme Court denied Sonitrol’s appeal and the case was returned to the District Court to resolve the sole issue of damages. On April 11, 2014 , the damages trial concluded with a jury award of $2.75 million in favor of the Company and its insurers, finding that Sonitrol was liable for damages related only to the burglary and not the subsequent arson. The District Court denied the Company’s motion for post-judgment relief on June 26, 2014 . The Company and its insurers appealed the District Court’s decision and on February 11, 2016 , the Appellate Court denied the Company's and its insurers' appeal and dismissed Sonitrol’s cross-appeal, upholding the jury award of $2.75 million in favor of the Company and its insurers. The Company is unable to predict when this litigation will be finally resolved and its ultimate outcome. Any monetary recovery from this lawsuit will be recognized only if and when it is finally paid to the Company. The Company is subject to certain legal proceedings, claims, investigations and administrative proceedings in the ordinary course of its business. The Company records a provision for a liability when it is both probable that the liability has been incurred and the amount of the liability can be reasonably estimated. These provisions, if any, are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. In the opinion of management, the outcome of pending litigation is not expected to have a material effect on the Company’s results of operations or financial condition. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s income tax provision consists of the following (in millions): Year Ended December 31, 2015 2014 2013 Current: Federal $ 19.4 $ 22.0 $ 18.7 State 3.2 3.1 2.4 Total current tax provision 22.6 25.1 21.1 Deferred: Federal 7.8 (0.6 ) 2.8 State 1.1 (0.5 ) 0.8 Foreign (0.1 ) (0.3 ) (0.3 ) Total deferred tax provision (benefit) 8.8 (1.4 ) 3.3 Total income tax provision $ 31.4 $ 23.7 $ 24.4 A reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate and income tax provision is as follows (in millions): Year Ended December 31, 2015 2014 2013 Federal income tax provision at the statutory rate $ 29.0 35.0 % $ 23.2 35.0 % $ 23.1 35.0 % Increase (decrease) resulting from: State income taxes, net of federal benefit 2.9 3.5 2.3 3.5 2.5 3.9 Decrease in unrecognized tax benefits (inclusive of related interest and penalty) — — (0.9 ) (1.4 ) (0.4 ) (0.6 ) Effect of foreign operations (0.1 ) (0.1 ) (0.3 ) (0.5 ) (0.3 ) (0.5 ) Change in valuation allowance (0.1 ) (0.1 ) — — — — Tax credits and other, net (0.3 ) (0.4 ) (0.6 ) (0.9 ) (0.5 ) (0.8 ) Income tax provision $ 31.4 37.9 % $ 23.7 35.7 % $ 24.4 37.0 % The Company’s effective tax rate was 37.9% for 2015 compared to 35.7% for 2014 . The increase in effective tax rate for 2015 is due primarily to a decrease in the recovery of unrecognized tax benefits and lower favorable adjustments to prior years' estimates. The provision for income taxes included a net benefit of $0.3 million and $1.8 million for 2015 and 2014 , respectively, related primarily to the expiration of the statute of limitations for uncertain tax positions and adjustments of prior years’ estimates. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The tax effects of significant temporary differences which comprise deferred tax assets and liabilities are as follows (in millions): December 31, 2015 December 31, 2014 Deferred tax assets: Employee benefits, including post-retirement benefits $ 15.2 $ 12.4 Trade and other receivables 4.1 4.1 Goodwill and intangibles 2.0 2.6 Self-insurance reserves 1.5 1.2 Other 4.0 3.7 Subtotal 26.8 24.0 Less: valuation allowance — (0.1 ) Net deferred tax assets $ 26.8 $ 23.9 Deferred tax liabilities: Inventories $ 9.0 $ 1.3 Property and equipment 27.2 22.6 Goodwill and intangibles 6.0 6.5 Other 1.6 1.6 Total deferred tax liabilities $ 43.8 $ 32.0 Total net deferred tax liabilities $ (17.0 ) $ (8.1 ) Net current deferred tax assets 1.6 8.1 Net non-current deferred tax liabilities $ (18.6 ) $ (16.2 ) At each balance sheet date, a valuation allowance was established against the deferred tax assets based on management’s assessment whether it is more likely than not that these deferred tax assets would not be realized. The Company had a valuation allowance of $0.1 million at December 31, 2014 which was written off in 2015 together with the related foreign tax credits that expired in 2015 . The total gross amount of unrecognized tax benefits related to federal, state and foreign taxes was approximately $0.4 million at December 31, 2015 and 2014 , all of which would impact the Company’s effective tax rate, if recognized. The expiration of the statute of limitation in future years could impact the total gross amount of unrecognized tax benefits by $0.2 million through the year ended December 31, 2016 as a result of the statute limitations for certain tax positions in future years and expected settlement of certain tax audit issues. A reconciliation of the beginning and ending amounts of unrecognized tax benefits for 2015 , 2014 and 2013 is as follows (in millions): Year Ended December 31, 2015 2014 2013 Balance at beginning of year $ 0.4 $ 0.6 $ 1.6 Increase in unrecognized tax benefits — — 0.2 Lapse of statute of limitations — (0.2 ) (0.2 ) Settlement (1) — — (1.0 ) Balance at end of year $ 0.4 $ 0.4 $ 0.6 ____________________________________________ (1) Relates to the settlement in 2013 of certain pre-acquisition tax liabilities which were reimbursed by the former owners of Forrest City Grocery Company. The Company files U.S. federal, state and foreign income tax returns in jurisdictions with varying statutes of limitations. The 2012 to 2015 tax years remain subject to examination by federal and state tax authorities. The 2011 tax year is still open for certain state tax authorities. The 2008 to 2015 tax years remain subject to examination by the tax authorities in Canada. For the year ended December 31, 2015 , the Company did not recognize any net benefit in its provision for income taxes related to the interest associated with certain unrecognized tax positions. For the years ended December 31, 2014 and 2013 , the Company recognized net benefits of $0.2 million and $0.1 million respectively. As of December 31, 2015 and December 31, 2014 , the Company had a liability of $0.3 million for estimated interest and penalties related to unrecognized tax benefits, consisting of $0.2 million for interest and $0.1 million for penalties. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Pension Plans The Company sponsored a qualified defined-benefit pension plan and a post-retirement benefit plan (collectively, “the Pension Plans”). The Pension Plans were frozen on September 30, 1986 and since then there have been no new entrants to the Pension Plans. The Company’s defined-benefit pension plan is subject to the Employee Retirement Income Security Act of 1974 (“ERISA”). Under ERISA, the Pension Benefit Guaranty Corporation (“PBGC”) has the authority to terminate an underfunded pension plan under limited circumstances. In the event the Company’s pension plan is terminated for any reason while it is underfunded, the Company would incur a liability to the PBGC that may be equal to the entire amount of the underfunding. The Company’s post-retirement benefit plan is not subject to ERISA. As a result, the post-retirement benefit plan is not required to be pre-funded, and, accordingly, has no plan assets. Pension costs and other post-retirement benefit costs charged to operations are estimated on the basis of annual valuations with the assistance of an independent actuary. Adjustments arising from plan amendments, changes in assumptions and experience gains and losses, are amortized over the average future life expectancy of inactive participants for the defined-benefit plan, and the average remaining future service of active employees expected to receive benefits for the post-retirement benefit plan. The following tables provide a reconciliation of the changes in the Pension Plans’ benefit obligation and fair value of assets, the funded status of the plans and the amounts recognized in the balance sheets and AOCI as of December 31, 2015 and 2014 (in millions): Pension Benefits Other Post-retirement Benefits December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Change in Benefit Obligation: Obligation at beginning of year $ 43.6 $ 40.1 $ 3.0 $ 3.4 Interest cost 1.7 1.8 0.1 0.1 Actuarial (gain) loss (2.0 ) 5.4 0.1 (0.4 ) Benefit payments (2.8 ) (3.7 ) (0.2 ) (0.1 ) Group annuity contract discontinuance (1.3 ) — — — Settlement of accumulated benefits (2.2 ) — — — Benefit obligation at end of year $ 37.0 $ 43.6 $ 3.0 $ 3.0 Change in Plan Assets: Fair value of plan assets at beginning of year $ 40.4 $ 38.0 $ — $ — Actual return on plan assets (1.8 ) 2.8 — — Employer contributions — 3.3 0.2 0.1 Benefit payments (2.8 ) (3.7 ) (0.2 ) (0.1 ) Group annuity contract discontinuance (1.3 ) — — — Settlement of accumulated benefits (2.2 ) — — — Fair value of plan assets at end of year $ 32.3 $ 40.4 $ — $ — Funded status at end of year $ (4.7 ) $ (3.2 ) $ (3.0 ) $ (3.0 ) Amounts recognized in the balance sheet consist of: Current liabilities $ — $ — $ (0.2 ) $ (0.2 ) Non-current liabilities (4.7 ) (3.2 ) (2.8 ) (2.8 ) Total liabilities $ (4.7 ) $ (3.2 ) $ (3.0 ) $ (3.0 ) Amounts recognized in AOCI consist of: Net actuarial loss (gain) $ 17.5 $ 17.9 $ (0.2 ) $ (0.4 ) Total $ 17.5 $ 17.9 $ (0.2 ) $ (0.4 ) Additional Information: Accumulated benefit obligation $ 37.0 $ 43.6 During 2015 , the underfunded status of the defined-benefit pension plan increased $1.5 million to $4.7 million , due primarily to a negative return on plan assets of $1.8 million caused by a general decline in equity markets, and interest costs of $1.7 million offset against an actuarial gain of $2.0 million . The actuarial gain is attributable to a $0.8 million gain from the adoption of the Society of Actuaries RP-2014 mortality table with MP-2015 projection, a $1.3 million gain from an increase in discount rates and $0.1 million loss due to other items. In December 2015, the Company discontinued its group annuity contract, settled the $1.3 million contract liability, and the excess assets were transferred to the Group Trust. The Company offers certain plan participants the option to receive a lump sum payment in lieu of future annuity pension benefits. During 2015 , the Company settled accumulated benefits of $2.2 million (pre-tax) for participants who received lump sum payments. The Company incurred settlement charges of $1.6 million during 2015 due to lump sum payments and the discontinuance of the group annuity contract. The following table provides components of net periodic benefit cost and other changes in plan assets and benefit obligations recognized in other comprehensive income (in millions): Pension Benefits Other Post-retirement Benefits December 31, December 31, 2015 2014 2013 2015 2014 2013 Net Periodic Benefit Cost: Interest cost $ 1.7 $ 1.8 $ 1.6 $ 0.1 $ 0.1 $ 0.2 Expected return on plan assets (2.1 ) (2.5 ) (2.3 ) — — — Amortization of prior service credit — — — — — (0.1 ) Amortization of net actuarial (gain) loss 0.6 0.4 0.6 — (0.1 ) — Curtailment gain — — — — — (0.9 ) Settlement charge 1.6 — — — — — Net periodic benefit (income) cost $ 1.8 $ (0.3 ) $ (0.1 ) $ 0.1 $ — $ (0.8 ) Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: Net actuarial (gain) loss $ 1.9 $ 5.2 $ (2.8 ) $ 0.2 $ (0.4 ) $ (0.8 ) Settlement charge (1.6 ) — — — — — Amortization of prior service cost — — — — — 0.1 Amortization of actuarial gain (loss) (0.6 ) (0.4 ) (0.6 ) — 0.1 — Total net loss (gain) recognized in other comprehensive income $ (0.3 ) $ 4.8 $ (3.4 ) $ 0.2 $ (0.3 ) $ (0.7 ) For both the pension and other post-retirement benefit plans, prior service costs are amortized on a straight-line basis over the average remaining future service of active employees expected to receive benefits under the plan. For the pension benefit plan, gains and losses in excess of 10% of the greater of the benefit obligation and market-related value of assets are amortized over the average future life expectancy of inactive participants. For the post-retirement benefit plan, gains and losses in excess of 10% of the greater of the benefit obligation and market-related value of assets are amortized over the average remaining future service of active employees expected to receive benefits under the plan. The Company uses its fiscal year-end date as the measurement date for the plans. The Company estimated that average future life expectancy is 21.3 years for the pension benefits plan and remaining service life of active participants is 5.3 years for the post-retirement benefits plan. Assumptions Used: The following table shows the weighted-average assumptions used in the measurement of: Pension Benefits Other Post-retirement Benefits December 31, December 31, 2015 2014 2013 2015 2014 2013 Benefit Obligations: Discount rate 4.32 % 4.00 % 4.60 % 4.32 % 3.99 % 4.60 % Expected return on assets 6.00 % 5.50 % 6.55 % N/A N/A N/A Net Periodic Benefit Costs: Discount rate 4.05 % 4.60 % 3.80 % 3.99 % 4.60 % 3.85 % Expected return on assets 5.95 % 6.55 % 7.00 % N/A N/A N/A The weighted-average discount rates used to determine the Pension Plans’ obligations and expenses are based on a yield curve methodology, which matches the expected benefits at each duration to the available high quality yields at that duration and calculating an equivalent yield. The net periodic benefit cost was re-measured at September 30, 2015 and December 31, 2015 to reflect settlement accounting due to lump sum payments and the discontinuance of the group annuity contract. During 2015, a discount rate of 4.00% was used from January 1 to September 30, a discount rate of 4.20% was used from October 1 to December 30, and a discount rate of 4.32% was used at December 31. The increase in discount rate in 2015 compared to 2014 was due to an increase in bond yields during 2015. The increase in the expected long-term return on assets assumption in 2015 compared to 2014 was due primarily to an increase in the return seeking asset allocation per the Plan’s dynamic investment policy. The Company uses a building block approach in determining the overall expected long term return on assets. Under this approach, a weighted-average expected rate of return is developed based on historical and expected future returns for each major asset class and the proportion of assets of the class held by the Pension Plans. The Company then reviews the results and may make adjustments to reflect the expected additional return gained through active investment management. Assumed health care cost trend rates have an effect on the amounts reported for the post-retirement health care plans. The health care cost trend rates assumed for the end of year benefit obligation for the post-retirement benefit plans are as follows: December 31, 2015 December 31, 2014 Assumed current trend rate for next year for participants under 65 6.80% 7.25% Assumed current trend rate for next year for participants 65 and over 7.85% 6.75% Ultimate year trend rate 5.00% 5.00% Year that ultimate trend rate is reached for participants under 65 2024 2024 Year that ultimate trend rate is reached for participants 65 and over 2023 2022 A one percent point change in assumed health care cost trend rates would have the following effects (in millions): 1% Increase 1% Decrease Effect on total of service and interest cost components of net periodic post-retirement health care benefit cost $ — $ — Effect on the health care component of the accumulated post-retirement benefit obligation $ 0.3 $ (0.3 ) Plan Assets: The Company has adopted a dynamic investment strategy to reduce the pension plan’s investment risk as the funded status improves. The strategy will reduce the allocation to return seeking assets (primarily equities) and increase the allocation to liability hedging assets (primarily fixed income) over time with the intention of reducing the volatility of the funded status and pension costs. Based on the plan’s funded status, the Company’s current target allocations are: 0-5% cash, 29-37% equity and 63-71% fixed income. The Company’s investment target also sets forth the requirement for diversification within asset class, types and classes for investments prohibited and permitted, specific indices to be used for benchmark in investment decisions and criteria for individual securities. The fair value measurements of the Pension Plans’ assets by asset category at December 31, 2015 are as follows (in millions): Asset Category Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 1.0 $ 1.0 $ — $ — Group trust 31.3 — 31.3 — Total $ 32.3 $ 1.0 $ 31.3 $ — During 2015 , the Company discontinued its group annuity contract which consisted primarily of investment grade fixed income securities. The Company settled the contract liability for $1.3 million and the excess assets were transferred to the Group Trust. The fair value measurements of the Pension Plans’ assets by asset category at December 31, 2014 are as follows (in millions): Asset Category Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 0.8 $ 0.8 $ — $ — Group trust 35.9 — 35.9 — Group annuity contract 3.7 — 3.7 — Total $ 40.4 $ 0.8 $ 39.6 $ — During 2014 , the Company reinvested the majority of the plan assets in an investment instrument (“Group Trust”), comprised of a diversified portfolio of investments across various asset classes, including U.S. and foreign equities and U.S. high yield and investment grade corporate bonds. The Group Trust is valued at the net asset value provided by the administrator of the fund. The net asset fair value is based on the value of the underlying assets owned by the fund, minus its liabilities, divided by the number of units outstanding. Estimated Future Contributions and Benefit Payments The Company currently does not expect to make contributions to its pension plan in 2016 and expects to contribute a minimum of $0.2 million to its other post-retirements benefits plan. Estimated future benefit payments reflecting future service are as follows (in millions): Year ending December 31, Pension Benefits Other Post-retirement Benefits 2016 $ 2.8 $ 0.2 2017 2.8 0.2 2018 3.1 0.2 2019 2.9 0.2 2020 2.9 0.2 2021 through 2025 12.6 1.0 Expected amortization from AOCI into net periodic benefit cost for the year ending December 31, 2016 (in millions): Pension Benefits Other Post-retirement Benefits Expected amortization of net actuarial loss $ 0.7 $ — Total expected amortizations for the year ended $ 0.7 $ — Multi-employer Defined Benefit Plan The Company contributed $0.4 million in each of the years ended December 31, 2015 and 2014 , and $0.3 million in the year ended December 31, 2013 , respectively, to multi-employer defined benefit plans under the terms of a collective-bargaining agreement that covers its union represented employees. Savings Plans The Company maintains defined-contribution plans in the U.S., subject to Section 401(k) of the Internal Revenue Code, and in Canada, subject to the Income Tax Act. For the year ended December 31, 2015 , eligible U.S. employees could elect to contribute, on a tax-deferred basis, from 1% to 75% of their compensation to a maximum of $ 18,000 . Eligible U.S. employees over 50 years of age could also contribute an additional $6,000 on a tax-deferred basis. In Canada, employees can elect to contribute up to a maximum of $24,930 Canadian dollars. As of December 31, 2015 , the Company matches 50% of U.S. and Canada employee contributions up to 6% of base salary for a total maximum company contribution of 3% . Effective January 1, 2016, the maximum contribution available to employees in Canada increased to $25,370 . For the years ended December 31, 2015 , 2014 and 2013 , the Company made matching payments of $3.1 million , $3.0 million and $2.8 million , respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic and diluted net earnings per share (dollars and shares in millions, except per share amounts): Years Ended December 31, 2015 2014 2013 Net Income Weighted-Average Shares Outstanding Net Income Per Common Share Net Income Weighted-Average Shares Outstanding Net Income Per Common Share Net Income Weighted-Average Shares Outstanding Net Income Per Common Share Basic EPS $ 51.5 23.1 $ 2.23 $ 42.7 23.1 $ 1.85 $ 41.6 23.0 $ 1.81 Effect of dilutive common share equivalents: Restricted stock units — 0.1 (0.01 ) — 0.1 (0.01 ) — — (0.01 ) Stock options — — — — 0.1 (0.01 ) — 0.2 (0.01 ) Performance shares — 0.1 (0.01 ) — — — — — — Diluted EPS $ 51.5 23.3 $ 2.21 $ 42.7 23.3 $ 1.83 $ 41.6 23.2 $ 1.79 ______________________________________________ Note: Basic and diluted earnings per share are calculated based on unrounded actual amounts. Stock options to purchase common stock are not included in the computation of diluted earnings per share if their effect would be anti-dilutive. There were no anti-dilutive stock options excluded in the computation of diluted earnings per share for 2015 , 2014 and 2013 . |
Stock Incentive Plans
Stock Incentive Plans | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Incentive Plans | Stock Incentive Plans 2010 Long-Term Incentive Plan On May 25, 2010, the Company’s stockholders approved the 2010 Long-Term Incentive Plan (“2010 LTIP”) which provided for the granting of awards of the Company’s common stock to officers, employees and non-employee directors. On May 20, 2014, the Company’s stockholders approved an amendment to the 2010 LTIP increasing the shares reserved for issuance to 3,131,904 shares of the Company’s common stock and reapproved the performance measures that may apply to awards granted thereunder. The 2010 LTIP became effective on April 1, 2010 and awards may be made under the plan through March 31, 2020. The available awards under the 2010 LTIP include: stock options, stock appreciation rights, RSUs, other stock-based awards and performance shares. The 2010 LTIP limits awards to 200,000 shares to any one participant in any one year. The majority of awards issued under the 2010 LTIP through December 31, 2015 , have been RSUs and performance shares, which generally vest over three years. The Company issues new shares upon stock option exercises and vesting of RSUs and performance shares. Prior Long-Term Incentive Plans The 2004 Long-Term Incentive Plan (“2004 LTIP”) provided for issuance of shares of non-qualified stock options and RSUs to officers and key employees. The 2005 Long-Term Incentive Plan (“2005 LTIP”) provided for the granting of RSUs to officers and key employees. The 2007 Long-Term Incentive Plan (“2007 LTIP”) provided for the granting of stock options, RSUs and performance share awards of the Company’s common stock to officers, employees and non-employee directors. The majority of awards granted by the Company vested over a three -year period: one-third of the awards cliff-vested on the first anniversary of the vesting commencement date and the remaining awards vested in equal monthly installments for the 2004 LTIP and equal quarterly installments for the 2005 LTIP and the 2007 LTIP, over the two -year period following the first anniversary of the vesting commencement date. For option grants, the exercise price equaled the fair value of the Company’s common stock on the date of grant. Stock options expire seven years after the date of grant. RSUs do not have an expiration date. The Company consolidated any previously granted shares that may become available again under the 2004 LTIP and 2005 LTIP with the 2010 LTIP. Any shares subject to awards granted under 2004 LTIP and 2005 LTIP that (i) expire or otherwise terminate without having been exercised or (ii) are forfeited to or repurchased by the Company, will become available for grant under the 2010 LTIP, up to a maximum of 912,000 shares. No further grants will be made under the 2004 LTIP, the 2005 LTIP, or the 2007 LTIP. The following table summarizes the number of securities to be issued and remaining available for future issuance under all of the Company’s stock incentive plans as of December 31, 2015 : Number of securities to be issued upon exercise of outstanding options and vesting of RSUs Weighted-average exercise price of outstanding options and vesting of RSUs Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column 1) 2005 Long-Term Incentive Plan -RSUs 6,104 $ 0.01 — 2007 Long-Term Incentive Plan (1) 11,415 $ 8.92 — 2010 Long-Term Incentive Plan (2) 347,423 $ 0.72 1,333,236 ______________________________________________ (1) Includes non-qualified stock options and RSUs. (2) Includes non-qualified stock options, RSUs and performance shares. The following table summarizes the activity for all stock options, RSUs and performance shares under all of the Long-Term Incentive Plans (“LTIPs”) for the year ended December 31, 2015 : December 31, 2014 Activity during 2015 December 31, 2015 Outstanding Granted Vested / Exercised Canceled Outstanding Exercisable Plans Securities Number Price Number Price Number Price Number Price Number Price Number Price 2004 LTIP Options 2,252 $ 9.60 — $ — (2,252 ) $ 9.60 — $ — — $ — — $ — 2005 LTIP RSUs 6,106 0.01 — — — — (2 ) — 6,104 0.01 6,104 0.01 2007 LTIP RSUs 812 0.01 — — — — — — 812 0.01 812 0.01 Options 41,500 10.48 — — (30,897 ) 10.79 — — 10,603 9.60 10,603 9.60 2010 LTIP RSUs 192,618 0.01 63,735 (1) 0.01 (91,064 ) 0.01 (1,000 ) 0.01 164,289 0.01 — — Options 15,000 16.39 — — — — — — 15,000 16.39 15,000 16.39 Performance shares 139,796 0.01 90,263 (2) 0.01 (39,930 ) 0.01 (21,995 ) 0.01 168,134 0.01 — — Total 398,084 153,998 (164,143 ) (22,997 ) 364,942 32,519 ______________________________________________ Note: Price is weighted-average price per share. (1) Consists of non-performance RSUs. (2) In January 2015 , the Company awarded a maximum of 90,263 performance shares that would have been received if the highest level of performance was achieved. Based on the actual achievement of the performance criteria, 71,128 performance shares were determined to be earned as of December 31, 2015 . The aggregate intrinsic value of stock options exercised in 2015 , 2014 and 2013 was $1.8 million , $5.2 million and $2.3 million , respectively. The aggregate intrinsic value of RSUs exercised in 2015 , 2014 and 2013 was $5.8 million , $5.3 million and $7.6 million , respectively. The aggregate intrinsic value of performance shares exercised in 2015 , 2014 and 2013 was $2.7 million , $1.1 million and $2.6 million , respectively. The following table summarizes stock options, RSUs and performance shares that have vested and are expected to vest as of December 31, 2015 : December 31, 2015 Outstanding Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value (1) (dollars in thousands) Plans Securities Vested Expected to vest (2) Vested Expected to vest (2) Vested Expected to vest (2) 2005 LTIP RSUs 6,104 — — — $ 500 $ — 2007 LTIP RSUs 812 — — — 67 — Options 10,603 — 1.0 — 767 — 2010 LTIP RSUs — 158,670 — — — 5,222 Performance shares — 166,453 — — — 5,828 Options 15,000 — 2.8 — 983 — Total 32,519 325,123 $ 2,317 $ 11,050 ______________________________________________ ( 1) Aggregate intrinsic value is calculated based upon the difference between the exercise price of options or RSUs and the Company’s closing common stock price on December 31, 2015 of $81.94 , multiplied by the number of instruments that are vested or expected to vest. Options and RSUs having exercise prices greater than the closing stock price noted above are excluded from this calculation. (2) Options, RSUs and performance shares that are expected to vest are net of estimated future forfeitures. The aggregate fair value of options vested in 2015 , 2014 and 2013 was zero , $0.3 million and $0.2 million , respectively. The aggregate fair value of RSUs vested in 2015 , 2014 and 2013 was $5.8 million , $5.4 million and $8.5 million , respectively. The aggregate fair value of performance shares vested in 2015 , 2014 and 2013 was $2.7 million , $1.1 million and $0.9 million , respectively. Assumptions Used for Fair Value The fair values for RSUs and performance shares, which are based on the fair market value of the Company’s stock at date of grant, are included below for shares granted during 2015 , 2014 and 2013 . For stock options, the Company uses the Black-Scholes option-pricing model to determine the grant date fair value. Option-pricing models require the input of assumptions that are estimated at the date of grant. The Company did not grant stock options in 2015 , 2014 , or 2013 . Year Ended December 31, 2015 2014 2013 Weighted-average fair value per share of grants: RSUs $ 64.94 $ 37.14 $ 49.39 Performance shares (1) $ 65.19 $ 36.80 N/A ______________________________________________ ( 1) Performance shares awarded in 2013 were ultimately canceled as the Company did not achieve the related performance targets for 2013 . Stock-based Compensation Expense The Company recognized stock-based compensation expense of $8.7 million , $6.1 million and $4.6 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Stock-based compensation expense is included in selling, general and administrative expenses on the consolidated statements of operations. Stock-based compensation expense recognized for 2015 was calculated based on awards ultimately expected to vest and has been reduced for estimated forfeitures. The Company’s forfeiture experience since inception of its plans has been approximately 4% of the total grants. The historical rate of forfeiture is a component of the basis for predicting the future rate of forfeitures, which are also dependent on the remaining service period related to grants and on the limited number of approximately 90 plan participants that have been awarded grants since the inception of the Company’s plans. As of December 31, 2015 , total unrecognized compensation cost related to non-vested share-based compensation arrangements was $4.8 million , which is expected to be recognized over a weighted-average period of 1.3 years. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Amendment to the Certificate of Incorporation On May 19, 2015, the Company’s stockholders approved an amendment to the Certificate of Incorporation increasing the total number of authorized shares of common stock from 50,000,000 to 100,000,000 . Dividends On October 19, 2011 , the Company announced the commencement of a quarterly dividend program. The Company's intentions are to continue increasing its dividends per share over time; however, the payment of any future dividends will be determined by the Company’s Board of Directors in light of then existing conditions, including the Company’s earnings, financial condition and capital requirements, strategic alternatives, restrictions in financing agreements, business conditions and other factors. The Credit Facility places certain limits on the Company’s ability to pay cash dividends on its common stock. ( See Note 8 - Long-term Debt . ) The Board of Directors approved the following cash dividends in 2015 (in millions, except per share data): Declaration Date Dividends Per Share Record Date Cash Payment Amount (1) Payment Date February 27, 2015 $0.13 March 12, 2015 $3.1 March 26, 2015 May 7, 2015 $0.13 May 22, 2015 $3.0 June 15, 2015 August 6, 2015 $0.13 August 21, 2015 $3.0 September 14, 2015 November 5, 2015 $0.16 November 20, 2015 $3.7 December 15, 2015 ______________________________________________ (1) Includes cash payments on declared dividends and payments made on RSUs vested subsequent to the payment date. The Company paid total dividends of $12.8 million , $10.7 million and $7.1 million in 2015 , 2014 and 2013 , respectively. Dividends declared and paid per common share were $0.55 , $0.46 and $0.30 in 2015 , 2014 and 2013 , respectively. On February 24, 2016 the Board of Directors declared a quarterly cash dividend of $0.16 per common share, which is payable on March 28, 2016 to shareholders of record as of close of business on March 11, 2016 . Repurchase of Common Stock In May 2013 , the Company’s Board of Directors authorized a $30 million increase to its stock repurchase plan. At the time of increase, the Company had $2.3 million remaining under its stock repurchase plan. The share repurchase program may be discontinued or amended at any time. The program has no expiration date and expires when the amount authorized has been expended or the Board of Directors withdraws its authorization. As of December 31, 2015 and 2014 , the Company had $11.5 million and $20.7 million , respectively, available for future share repurchases under the program. The following table summarizes the Company’s stock repurchase activities for the years ended December 31, 2015 and 2014 : Year Ended December 31, 2015 2014 Number of shares repurchased 151,183 175,917 Average price per share $ 60.70 $ 45.49 Total repurchase costs (in millions) $ 9.2 $ 8.0 |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) The components of other comprehensive income (“OCI”) and the related tax effects were as follows (in millions): Year Ended December 31, 2015 2014 2013 Net Net Net Before Tax of Before Tax of Before Tax of Tax Effect Tax Tax Effect Tax Tax Effect Tax Defined benefit plan adjustments: Net actuarial gain (loss) during the year $ (2.1 ) $ 0.9 $ (1.2 ) $ (4.8 ) $ 1.7 $ (3.1 ) $ 3.6 $ (1.5 ) $ 2.1 Settlement charge 1.6 (0.6 ) 1.0 — — — — — — Amortization of prior service cost included in net income — — — — — — (0.1 ) — (0.1 ) Amortization of net actuarial loss included in net income 0.6 (0.2 ) 0.4 0.3 (0.1 ) 0.2 0.6 (0.2 ) 0.4 Net (loss) gain during the year 0.1 0.1 0.2 (4.5 ) 1.6 (2.9 ) 4.1 (1.7 ) 2.4 Foreign currency translation loss (4.9 ) — (4.9 ) (3.0 ) — (3.0 ) (1.5 ) — (1.5 ) Other comprehensive (loss) income $ (4.8 ) $ 0.1 $ (4.7 ) $ (7.5 ) $ 1.6 $ (5.9 ) $ 2.6 $ (1.7 ) $ 0.9 The following table provides a summary of the changes in AOCI for the years presented (in millions): Foreign Defined Currency Benefit Plan Translation Total Balance as of December 31, 2012 $ (10.3 ) $ 3.7 $ (6.6 ) Other comprehensive income (loss) 2.4 (1.5 ) 0.9 Balance as of December 31, 2013 (7.9 ) 2.2 (5.7 ) Other comprehensive loss (2.9 ) (3.0 ) (5.9 ) Balance as of December 31, 2014 (10.8 ) (0.8 ) (11.6 ) Other comprehensive income (loss) 0.2 (4.9 ) (4.7 ) Balance as of December 31, 2015 $ (10.6 ) $ (5.7 ) $ (16.3 ) |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information The Company identifies its operating segments according to how management reviews, assesses and makes decisions about operational performance. In 2014, the Company assessed the identification of its operating segments given the organic growth in the business as well as the addition of national chain customers, and the way the Chief Operating Decision Maker (“CODM”) evaluates performance and makes decisions. From the perspective of the CODM, the Company is engaged primarily in the business of distributing packaged consumer products to convenience retail stores in the U.S. and Canada (collectively “North America”), which consists of customers that have similar characteristics. Therefore, the Company has determined that it has two operating segments -- U.S. and Canada that aggregates to one reportable segment. The Company presents its segment reporting information based on business operations for each of the two geographic areas in which it operates and also by major product category. Information about the Company’s business operations based on the two geographic areas is as follows (in millions): Year Ended December 31, 2015 2014 2013 Net sales: United States $ 9,829.7 $ 8,989.0 $ 8,618.3 Canada 1,203.5 1,250.9 1,114.3 Corporate (1) 36.2 40.2 35.0 Total $ 11,069.4 $ 10,280.1 $ 9,767.6 Income (loss) before income taxes: United States $ 79.4 $ 70.8 $ 57.3 Canada 1.7 3.2 0.9 Corporate (2) 1.8 (7.6 ) 7.8 Total $ 82.9 $ 66.4 $ 66.0 Interest expense: United States $ 35.0 $ 32.0 $ 30.2 Canada 0.7 0.7 0.6 Corporate (3) (33.2 ) (30.3 ) (28.1 ) Total $ 2.5 $ 2.4 $ 2.7 Depreciation and amortization: United States $ 29.3 $ 24.9 $ 20.2 Canada 2.4 2.8 2.7 Corporate (4) 6.2 4.3 4.3 Total $ 37.9 $ 32.0 $ 27.2 Capital expenditures: United States $ 28.6 $ 53.3 $ 15.7 Canada 1.7 0.6 2.3 Total $ 30.3 $ 53.9 $ 18.0 _____________________________________________ (1) Consists primarily of external sales made by the Company’s consolidating warehouses, management service fee revenue, allowance for sales returns and certain other sales adjustments. (2) Consists primarily of expenses and other income, such as corporate incentives and salaries, LIFO expense, health care costs, insurance and workers’ compensation adjustments, elimination of overhead allocations and foreign exchange gains or losses. The change from 2015 to 2014 is primarily attributable to a decrease in LIFO expense. (3) Consists primarily of intercompany eliminations for interest. (4) Consists primarily of depreciation for the consolidation centers and amortization of intangible assets. The change from 2015 to 2014 is primarily attributable to upgrades of ordering technology and the acquisition of Karrys Bros. Identifiable assets by geographic area are as follows (in millions): December 31, December 31, December 31, 2015 2014 2013 Identifiable assets: United States $ 981.4 $ 913.8 $ 844.8 Canada 95.9 115.8 112.0 Total $ 1,077.3 $ 1,029.6 $ 956.8 The net sales for the Company’s product categories are as follows (in millions): Year Ended December 31, 2015 2014 2013 Product Category Net Sales Net Sales Net Sales Cigarettes $ 7,528.5 $ 6,942.0 $ 6,642.0 Food 1,586.1 1,462.0 1,342.3 Candy (1) 557.0 534.3 513.2 Other tobacco products 870.3 827.5 787.8 Health, beauty & general (1) 368.8 361.0 341.3 Beverages 156.6 151.8 139.1 Equipment/other 2.1 1.5 1.9 Total food/non-food products $ 3,540.9 $ 3,338.1 $ 3,125.6 Total net sales $ 11,069.4 $ 10,280.1 $ 9,767.6 _____________________________________________ (1) In 2014 , certain products were moved from the Candy category to the Health, beauty & general category to align them with the industry classifications used by the National Association of Convenience Stores. The 2013 presentation has been realigned to reflect these changes. Without the changes, net sales for Candy would have been $527.2 million for the year ended December 31, 2013 . Net sales for Health, beauty & general products would have been $327.3 million for the year ended December 31, 2013 . |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The tables below provide the Company’s unaudited consolidated results of operations for each of the four quarters in 2015 and 2014 : Three Months Ended (in millions, except per share data) December 31, September 30, June 30, March 31, 2015 2015 2015 2015 Net sales — Cigarettes (1) $ 1,934.5 $ 2,049.6 $ 1,899.1 $ 1,645.3 Net sales — Food/non-food (1) 880.6 942.0 911.3 807.0 Net sales (1) 2,815.1 2,991.6 2,810.4 2,452.3 Cost of goods sold (1) 2,645.0 2,820.0 2,651.5 2,315.0 Gross profit (2) 170.1 171.6 158.9 137.3 Warehousing and distribution expenses (3) 91.7 92.8 88.6 79.5 Selling, general and administrative expenses (4) 48.4 52.8 47.5 47.3 Amortization of intangible assets 0.8 0.6 0.6 0.6 Total operating expenses 140.9 146.2 136.7 127.4 Income from operations 29.2 25.4 22.2 9.9 Interest expense (0.6 ) (0.6 ) (0.7 ) (0.6 ) Interest income 0.1 0.1 0.1 0.2 Foreign currency losses, net (0.5 ) (0.7 ) (0.2 ) (0.4 ) Income before income taxes 28.2 24.2 21.4 9.1 Income tax provision (10.5 ) (9.1 ) (8.2 ) (3.6 ) Net income 17.7 15.1 13.2 5.5 Basic net income per common share (5) $ 0.77 $ 0.65 $ 0.57 $ 0.24 Diluted net income per common share (5) $ 0.75 $ 0.65 $ 0.57 $ 0.24 Shares used to compute basic net income per common share 23.2 23.1 23.1 23.2 Shares used to compute diluted net income per common share 23.4 23.3 23.3 23.3 Excise taxes (1) $ 566.7 $ 607.1 $ 554.2 $ 483.7 Cigarette inventory holding gains (6) 4.7 0.6 3.8 1.0 Cigarette tax stamp inventory holding gains (7) 0.7 8.3 — — LIFO (income) expense (8) (7.3 ) 3.3 3.5 2.4 Depreciation and amortization 9.6 9.9 9.7 8.7 Stock-based compensation 2.0 2.7 2.1 1.9 Capital expenditures 5.6 10.3 11.7 2.7 ____________________________________________ (1) Excise taxes are included as a component of net sales and cost of goods sold. (2) Includes OTP tax refunds, net of tax assessments, of $0.8 million in Q2 and $0.9 million in Q1 2015 . (3) Warehousing and distribution expenses are not included as a component of the Company’s cost of goods sold, this presentation may differ from that of other registrants. (4) Selling, general and administrative (“SG&A”) expenses include acquisition and integration of $1.8 million , related primarily to the addition of Karrys Bros. consisting of $0.3 million in Q4, $0.4 million in Q3, $0.8 million in Q2, and $0.3 million in Q1. SG&A expenses also include $1.6 million related to pension settlements, consisting of $0.7 million in Q4 and $0.9 million in Q3. (5) Totals may not agree with full year amounts due to rounding. (6) Cigarette inventory holding gains represent income related to cigarette inventories on hand at the time cigarette manufacturers increase their prices. Such increases are reflected in customer pricing for all subsequent sales, including sales of inventory on hand at the time of the increase. (7) Cigarette tax stamp inventory holding gains relate to income earned on cigarette tax stamp inventory quantities on hand at the time taxing jurisdictions increase their excise taxes. (8) LIFO expense decreased in 2015 was due primarily to a decrease in the PPI for certain product categories we use to measure food/non-food LIFO expense as published by the Bureau of Labor Statistics. Three Months Ended (in millions, except per share data) December 31, September 30, June 30, March 31, 2014 2014 2014 2014 Net sales — Cigarettes (1) $ 1,764.6 $ 1,858.3 $ 1,770.8 $ 1,548.3 Net sales — Food/non-food (1) 844.0 889.1 852.4 752.6 Net sales (1) 2,608.6 2,747.4 2,623.2 2,300.9 Cost of goods sold (1) 2,454.0 2,596.0 2,479.9 2,176.5 Gross profit (2) 154.6 151.4 143.3 124.4 Warehousing and distribution expenses (3) 81.5 83.5 78.1 75.3 Selling, general and administrative expenses (4) 49.5 47.0 44.0 43.9 Amortization of intangible assets 0.6 0.7 0.7 0.6 Total operating expenses 131.6 131.2 122.8 119.8 Income from operations 23.0 20.2 20.5 4.6 Interest expense (0.6 ) (0.5 ) (0.6 ) (0.7 ) Interest income 0.2 0.1 0.2 0.1 Foreign currency gains (losses), net (0.1 ) 0.2 (0.2 ) — Income before income taxes 22.5 20.0 19.9 4.0 Income tax provision (7.9 ) (6.3 ) (7.9 ) (1.6 ) Net income 14.6 13.7 12.0 2.4 Basic net income per common share (5) $ 0.63 $ 0.59 $ 0.52 $ 0.11 Diluted net income per common share (5) $ 0.62 $ 0.59 $ 0.52 $ 0.10 Shares used to compute basic net income per common share 23.1 23.1 23.1 23.0 Shares used to compute diluted net income per common share 23.4 23.3 23.2 23.2 Excise taxes (1) $ 530.3 $ 567.6 $ 539.9 $ 472.5 Cigarette inventory holding gains (6) 4.2 0.2 3.3 0.5 Candy inventory holding gains (7) 0.8 5.2 — — LIFO expense 2.7 6.5 4.3 2.8 Depreciation and amortization 8.6 8.3 7.9 7.2 Stock-based compensation 1.8 1.5 1.5 1.3 Capital expenditures (8) 29.8 9.3 9.8 5.0 ______________________________________________ (1) Excise taxes are included as a component of net sales and cost of goods sold. (2) Includes OTP tax refunds, net of tax assessments, of $6.2 million in Q4 and $2.3 million in Q3 2014 . (3) Warehousing and distribution expenses are not included as a component of the Company’s cost of goods sold, this presentation may differ from that of other registrants. (4) SG&A expenses include acquisition and integration expenses of $1.4 million related primarily to Ohio and the addition of new customers, consisting of $0.7 million in Q4, $0.6 million in Q3, $0.1 million in Q2, and none in Q1. (5) Totals may not agree with full year amounts due to rounding. (6) Cigarette inventory holding gains represent income related to cigarette inventories on hand at the time cigarette manufacturers increase their prices. Such increases are reflected in customer pricing for all subsequent sales, including sales of inventory on hand at the time of the increase. (7) Candy inventory holding gains represent income related to candy inventories on hand at the time candy manufacturers increase their prices. Such increases are reflected in customer pricing for all subsequent sales, including sales of inventory on hand at the time of the increase. (8) Capital expenditures increased in Q4 2014 due primarily to facility projects in Ohio and Sacramento along with expenditures to support our new customers. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts | SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (in millions) Balance at Beginning of Period Charged to Costs and Expenses Deductions Charged to Other Accounts Balance at End of Period Year Ended December 31, 2015 Allowances for: Trade receivables $ 10.8 $ 1.3 $ (1.3 ) $ 0.1 $ 10.9 Inventory reserves 0.6 18.6 (18.5 ) — 0.7 $ 11.4 $ 19.9 $ (19.8 ) $ 0.1 $ 11.6 Year Ended December 31, 2014 Allowances for: Trade receivables $ 9.4 $ 2.2 $ (0.7 ) $ (0.1 ) $ 10.8 Inventory reserves 0.8 16.4 (16.6 ) — 0.6 $ 10.2 $ 18.6 $ (17.3 ) $ (0.1 ) $ 11.4 Year Ended December 31, 2013 Allowances for: Trade receivables $ 10.9 $ 1.1 $ (2.6 ) $ — $ 9.4 Inventory reserves 0.8 12.7 (12.7 ) — 0.8 $ 11.7 $ 13.8 $ (15.3 ) $ — $ 10.2 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The consolidated financial statements include Core-Mark and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in the consolidated financial statements. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company considers the allowance for doubtful accounts, valuation of goodwill and long-lived assets, realizability of deferred income taxes, uncertain tax positions, vendor rebates and promotional allowances, valuation of pension assets and obligations and self-insurance reserves to be those estimates which involve a higher degree of judgment and complexity. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue at the point at which the product is delivered and title passes to the customer. The Company includes fees charged to customers for shipping and handling activities in net sales and the related costs in cost of goods sold. Revenues are reported net of customer incentives, discounts and returns, including an allowance for estimated returns. The allowance for sales returns is calculated based on the Company’s returns experience, which has historically not been significant. The Company also earns management service fee revenue from operating third party distribution centers belonging to certain customers. These revenues represented less than 1% of the Company’s total net sales for 2015 , 2014 and 2013 . Service fee revenue is recognized as earned on a monthly basis in accordance with the terms of the management service fee contracts and is included in net sales on the accompanying consolidated statements of operations. |
Customers' Sales Incentives and Vendor and Sales Incentives | Customers ’ Sales Incentives The Company also provides sales allowances or discounts to its customers on a regular basis. These customers’ sales incentives are recorded as a reduction to net sales as the sales incentive is earned by the customer. Additionally, the Company may provide allowances for the customers' commitment to continue using Core-Mark as the supplier, these incentives are known as racking allowances. These allowances may be paid at the inception of the contract or on a periodic basis. Allowances paid at the inception of the contract are capitalized and amortized over the period of the distribution agreement as a reduction to sales. Vendor Rebates and Promotional Allowances Periodic payments from vendors in various forms including rebates, promotional allowances and volume discounts are reflected in the carrying value of the related inventory when earned and in cost of goods sold when the related merchandise is sold. Up-front consideration received from vendors for purchase or other commitments is initially deferred and amortized ratably to cost of goods sold as the performance of the activities specified by the vendor is completed. Cooperative marketing incentives received from vendors to fund specific programs first offset the costs of the program and to the extent the consideration exceeds the costs relating to the program, the excess funds are recorded as reductions to cost of goods sold. These amounts are recorded in the period the related promotional or merchandising programs are provided. Certain vendor incentive promotions require the Company to make assumptions and judgments regarding, for example, the likelihood of achieving market share levels or attaining specified levels of purchases. Vendor incentives are at the discretion of the Company’s vendors and can fluctuate due to changes in vendor strategies and market requirements. |
Excise Taxes | Excise Taxes The Company is responsible for collecting and remitting state, local and provincial excise taxes on cigarette and other tobacco products. These excise taxes are a significant component of the Company’s net sales and cost of goods sold. In 2015 , 2014 and 2013 , approximately $2.2 billion , $2.1 billion and $2.1 billion , or 20% , 21% and 21% of the Company’s net sales, and approximately 21% , 22% and 22% of its cost of goods sold, respectively, represented excise taxes. Federal excise taxes are levied on the manufacturers who, in turn, pass the tax on to the Company as part of the product cost. As a result, federal excise taxes are not a component of the Company’s excise taxes. |
Stock-based Compensation | Stock-based Compensation The Company accounts for stock-based compensation expense related to restricted stock unit ("RSU") awards, performance shares and stock options based on the grant-date fair value of the awards. For service based awards the Company recognizes the expense using a straight-line method and for performance based awards the Company recognizes the expense ratably based on the achievement of performance conditions. For stock option awards, the Company uses the Black-Scholes option valuation model to determine the fair value ( see Note 13 - Stock Incentive Plans ). Determining the appropriate fair value model and calculating the fair value of stock option awards at the grant date requires considerable judgment, including estimating stock price volatility, expected life of share awards and forfeiture rates. The Company develops its estimates based on historical data and market information, which can change significantly over time. |
Pension Costs and Other Post-retirement Benefit Costs | Pension Costs and Other Post-retirement Benefit Costs Pension costs and other post-retirement benefit costs charged to operations are estimated on the basis of annual valuations by an independent actuary. Adjustments arising from plan amendments, changes in assumptions and experience gains and losses are amortized over the expected average remaining service life of the employee group. Plan changes that materially reduce the expected years of future services of current employees or eliminates for a significant number of employees the accrual of defined benefits for some or all of their future services, result in curtailment gains. A curtailment gain first reduces any net loss previously included in accumulated other comprehensive income (loss) (“AOCI”), and to the extent that such a gain exceeds any net loss included in AOCI, it is recorded as a curtailment gain in the Company’s consolidated statement of operations. The Company offers certain plan participants the option to receive a lump sum payment in lieu of future annuity pension benefits. Acceptance of the lump sum payment by plan participants may result in the Company recognizing a settlement charge and an adjustment in the projected benefit plan obligation. The Company recognizes an asset for a plan’s overfunded status or a liability for a plan’s underfunded status on its consolidated balance sheet as of the end of each fiscal year. The Company determines the plan’s funded status by measuring its assets and its obligations and recognizes changes in the funded status of its defined benefit post-retirement plan in the year in which the change occurred ( see Note 11 - Employee Benefit Plans ) . |
Income Taxes | Income Taxes Income taxes are accounted for using the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when the Company does not consider it more likely than not that some portion or all of the deferred tax assets will be realized. A tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. The Company has established an estimated liability for income tax exposures that arise and meet the criteria for accrual. The Company prepares and files tax returns based on its interpretation of tax laws and regulations and records estimates based on these judgments and interpretations. In the normal course of business, the Company’s tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax and interest assessments by these taxing authorities. Inherent uncertainties exist in estimates of tax contingencies due to changes in tax law resulting from legislation, regulation and/or as concluded through the various jurisdictions’ tax court systems. The Company classifies interest and penalties related to income taxes as income tax expense ( see Note 10 - Income Taxes ). |
Earnings Per Share | Earnings Per Share Basic earnings per share is calculated by dividing net income by the weighted-average number of common shares outstanding during each period, excluding unvested RSUs and performance shares. Diluted earnings per share is calculated by dividing net income by weighted-average shares outstanding including common stock equivalents. Common stock equivalents include stock options, RSUs and performance based awards if the impact is dilutive, using the treasury stock method ( see Note 12 - Earnings Per Share ) . |
Cash, Cash Equivalents, Restricted Cash and Book Overdrafts | Cash, Cash Equivalents, Restricted Cash and Book Overdrafts Cash and cash equivalents include cash, money market funds and highly liquid investments with original maturities of three months or less. Restricted cash represents funds collected and set aside in trust as required by one of the Canadian provincial taxing authorities to secure amounts payable for cigarette and tobacco excise taxes. The Company had cash book overdrafts of $29.2 million and $29.1 million at December 31, 2015 and 2014 , respectively. Book overdrafts consist primarily of outstanding checks in excess of cash on hand in the corresponding bank accounts at the end of the period. The Company’s policy has been to fund these outstanding checks as they clear with cash held on deposit with other financial institutions or with borrowings under the Company’s revolving credit facility. |
Accounts Receivable and Allowance for Doubtful Accounts and Other Receivables | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable consists of trade receivables from customers. The Company evaluates the collectability of accounts receivable and determines the appropriate allowance for doubtful accounts based on historical experience and a review of specific customer accounts. Account balances are charged against the allowance when collection efforts have been exhausted and the receivable is deemed uncollectible ( see Note 4 - Other Consolidated Balance Sheet Accounts Detail ). Other Receivables Other receivables consist primarily of amounts due from vendors for promotional and other incentives, which are accrued as earned. The Company evaluates the collectability of amounts due from vendors and determines the appropriate allowance for doubtful accounts based on historical experience and a review of specific amounts outstanding ( see Note 4 - Other Consolidated Balance Sheet Accounts Detail ). |
Inventories | Inventories Inventories consist of finished goods, including cigarettes and other tobacco products, food and other consumable products held for re-sale and are valued at the lower of cost or market. In the Company’s U.S. divisions, cost is determined primarily on a last-in, first-out (“LIFO”) basis. The Company uses the link-chain dollar value LIFO method. The inventory price index computation ("IPIC") is used to calculate LIFO inflation indices for which the LIFO inflation source is the producer price indices ("PPI") published by the US Bureau of Labor Statistics ("BLS"). The Company uses the IPIC pooling method for which LIFO pools are established for each PPI in accordance with current regulations. When the Company is aware of material price increases or decreases from manufacturers, the Company estimates the PPI for the respective period, if it determines the price increase is not fully reflected in the PPI, in order to more accurately reflect inflation rates. Under the LIFO method, current costs of goods sold are matched against current sales. Inventories in the Company’s Canadian divisions are valued on a first-in, first-out ("FIFO") basis, as LIFO is not a permitted inventory valuation method in Canada. Approximately 88.0% and 85.0% of the Company’s inventory was valued on a LIFO basis at December 31, 2015 and 2014 , respectively. The Company reduces inventory value for spoiled, aged and unrecoverable inventory based on amounts on-hand and historical experience ( see Note 5 - Inventories ). |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost, net of accumulated depreciation and amortization. Depreciation and amortization on new purchases are computed using the straight-line method over the assets’ estimated useful lives. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life of the property or the term of the lease including available renewal option terms if it is reasonably assured that those options will be exercised. Upon retirement or sale, the cost and related accumulated depreciation of the assets are removed and any related gain or loss is reflected in the consolidated statements of operations. Maintenance and repairs are charged to expense as incurred (s ee Note 6 - Property and Equipment ). The Company uses the following depreciable lives for its property and equipment: Useful Life in Years Office furniture and equipment 3-10 Delivery equipment 4-10 Warehouse equipment 5-15 Leasehold improvements 3-25 Buildings 15-25 |
Definite-lived Intangible Assets | Intangible assets with definite lives are generally amortized on a straight-line basis over the following lives: Useful Life in Years Customer relationships 10-15 Non-competition agreements 1-5 Software 3-7 |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy | The Company reviews its long-lived assets for indicators of impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. An impairment of long-lived assets exists when the carrying amount of a long-lived asset, or asset group, exceeds its fair value, and impairment losses are recorded when the carrying amount of the impaired asset is not recoverable. Recoverability is determined by comparing the carrying amount of the asset (or asset group) to the undiscounted cash flows which are expected to be generated from its use. |
Goodwill | Goodwill Goodwill represents the excess of cost over the fair value of net assets acquired in a business combination. Goodwill is not amortized. The Company tests goodwill for impairment annually as of October 1 or whenever events or circumstances indicate that it is more likely than not that the fair value of a reporting unit is below its carrying amount. The Company’s reporting units are its U.S. operations and Canadian operations. Whenever events or circumstances change, the Company assesses the related qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. The tests to evaluate goodwill for impairment are performed at the reporting unit level. In the first step of the quantitative impairment test, the Company compares the fair value of the reporting unit to its carrying value. If the fair value of the reporting unit is less than its carrying value, the Company performs a second step to determine the implied fair value of goodwill associated with the reporting unit. If the carrying value of goodwill exceeds the implied fair value of goodwill, such excess represents the amount of goodwill impairment for which an impairment loss would be recorded. Determining the fair value of a reporting unit involves the use of significant estimates and assumptions. The estimated fair value of each reporting unit is based on the discounted cash flow method, which is based on historical and forecasted amounts specific to each reporting unit and considers net sales, gross profit, income from operations and cash flows and general economic and market conditions, as well as the impact of planned business and operational strategies and other estimates and assumptions for future growth rates, working capital and capital expenditures. The Company bases its fair value estimates on assumptions it believes to be reasonable at the time, but such assumptions are subject to inherent uncertainty. Measuring the fair value of reporting units constitutes a Level 3 measurement under the fair value hierarchy. |
Computer Software Developed or Obtained for Internal Use | Computer Software Developed or Obtained for Internal Use The Company accounts for computer software systems, namely its proprietary Distribution Center Management System (“DCMS”), and software purchased from third-party vendors, using certain criteria under which costs associated with this software are either expensed or capitalized and amortized over periods from three to seven years. |
Debt Issuance Costs | Debt Issuance Costs Debt issuance costs are deferred and amortized as interest expense over the term of the related debt agreement on a straight-line basis, which approximates the effective interest method. Debt issuance costs are included in deposits and prepayments and other non-current assets on the accompanying consolidated balance sheets. |
Claims Liabilities and Insurance Recoverables | Claims Liabilities and Insurance Recoverables The Company maintains reserves related to health and welfare, workers’ compensation, auto and general liability programs that are principally self-insured. The Company currently has a per-claim deductible of $500,000 for its workers’ compensation, general and auto liability self-insurance programs and a per person annual claim deductible of $250,000 for its health and welfare program. The Company purchases insurance to cover the claims that exceed the deductible up to policy limits. Self-insured reserves are for pending or future claims that fall outside the policy and reserves include an estimate of expected settlements on pending claims and a provision for claims incurred but not reported. Estimates for workers’ compensation, auto and general liability insurance are based on the Company’s assessment of potential liability using an annual actuarial analysis of available information with respect to pending claims, historical experience and current cost trends. Reserves for claims under these programs are included in accrued liabilities (current portion) and claims liabilities, net of current portion on the accompanying consolidated balance sheets. Claims liabilities and the related recoverables from insurance carriers for estimated claims in excess of the deductible and other insured events are presented in their gross amounts on the accompanying consolidated balance sheets because there is no right of offset. The carrying values of claims liabilities and insurance recoverables are not discounted. Insurance recoverables are included in other receivables, net and other non-current assets, net. |
Foreign Currency Translation | Foreign Currency Translation The operating assets and liabilities of the Company’s Canadian operations, whose functional currency is the Canadian dollar, are translated to U.S. dollars at exchange rates in effect at period-end. Translation gains and losses are recorded in AOCI as a component of stockholders’ equity. Revenue and expenses from Canadian operations are translated using the monthly average exchange rates in effect during the period in which the transactions occur. The Company also recognizes gains or losses on foreign currency exchange transactions between its Canadian and U.S. operations, net of applicable income taxes, in the consolidated statements of operations. |
Total Comprehensive Income | Total Comprehensive Income Comprehensive income consists of net income and other transactions recorded directly to stockholders’ equity that are excluded from net income. Other comprehensive income is comprised of defined benefit plan adjustments and foreign currency translation adjustments related to the Company’s foreign operations in Canada, whose functional currency is not the U.S. dollar ( see Note 15 - Other Comprehensive Income (Loss) ) . |
Fair Value Measurements | Fair Value Measurements The Company’s financial assets and liabilities are recognized or disclosed at fair value in the financial statements on a recurring basis. The carrying amount of cash equivalents, restricted cash, trade accounts receivable, other receivables, trade accounts payable, cigarette and tobacco taxes payable and other accrued liabilities approximates fair value because of the short maturity of these financial instruments. The carrying amount of the Company’s variable rate debt approximates fair value. The Company calculates the fair value of its pension plan assets based on assumptions that market participants would use in pricing the assets ( see Note 11 - Employee Benefit Plans ). The Company uses a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value and gives precedence to observable inputs in determining fair value. An instrument’s level within the hierarchy is based on the lowest level of any significant input to the fair value measurement. The following levels were established for each input: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 - Unobservable inputs for the asset or liability, which reflect the Company’s own assumptions about what market participants would assume when pricing the asset or liability. |
Business Combinations | Business Combinations The Company accounts for all business combinations using the acquisition method of accounting, which allocates the fair value of the purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions. Management may further adjust the acquisition date fair values for a period of up to one year from the date of acquisition. Acquisition related expenses and transaction costs associated with business combinations are expensed as incurred ( see Note 3 - Acquisition ). |
Risks and Concentrations | Risks and Concentrations Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash investments, accounts receivable and other receivables. The Company places its cash and cash equivalents in short-term instruments with high quality financial institutions and limits the amount of credit exposure in any one financial instrument. The Company pursues amounts and incentives due from vendors in the normal course of business and is often allowed to deduct these amounts and incentives from payments made to vendors. A credit review is completed for new customers and ongoing credit evaluations of each customer’s financial condition are performed periodically, with reserves maintained for potential credit losses. Credit limits given to customers are based on a risk assessment of their ability to pay and other factors. Accounts receivable are typically not collateralized, but the Company may require prepayments or other guarantees whenever deemed necessary. |
Recent Accounting Standards or Updates Not Yet Effective | Recent Accounting Standards or Updates Not Yet Effective On May 28, 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09 (ASU 2014-09), Revenue from Contracts with Customers: Topic 606 (“ASU 2014-09”), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. This standard is effective for the Company beginning in 2017 and allows for either full retrospective adoption or modified retrospective adoption with cumulative effect recognized at the date of initial adoption. Early adoption of this standard is not allowed. The Company is currently evaluating the impact of the adoption of ASU 2014-09 on its consolidated financial statements. On May 7, 2015, the FASB issued ASU No. 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent): Topic 820 (“ASU 2015-07”). The standard removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The Company does not hold any such investments on its consolidated balance sheet, however, the assets held in a group trust for the Company’s defined benefit pension plan includes equities and corporate bonds. ASU 2015-07 requires retrospective adoption and is effective for the Company beginning in 2016. The Company has determined that the adoption of ASU 2015-07 will not have a material impact on its consolidated financial statements. On August 18, 2015, the FASB issued ASU No. 2015-15, Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of -Credit Arrangements: Subtopic 835-30 (“ASU 2015-15”). The guidance states that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. ASU 2015-15 requires retrospective application and is effective for annual periods beginning after December 15, 2015. The Company has determined the adoption of ASU 2015-15 will not have a material impact on its consolidated financial statements. On November 20, 2015, the FASB issued ASU No.2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes: Topic 740 (“ASU 2015-17”). The new guidance requires entities with a classified balance sheet to present all deferred tax assets and liabilities as non-current. ASU 2015-17 requires either prospective or retrospective application and is effective for annual periods beginning after December 15, 2016. The adoption of ASU 2015-17 will not have a material impact on the presentation of its consolidated financial statements. On January 5, 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities: Subtopic 825-10 (“ASU 2016-01”). The new guidance enhances the reporting model for financial instruments, which includes amendments to address aspects of recognition, measurement, presentation and disclosure. ASU 2016-01 is effective for annual periods beginning after December 15, 2017. The Company is currently evaluating the impact ASU 2016-01 will have on its consolidated financial statements. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Property and Equipment, Useful Life | The Company uses the following depreciable lives for its property and equipment: Useful Life in Years Office furniture and equipment 3-10 Delivery equipment 4-10 Warehouse equipment 5-15 Leasehold improvements 3-25 Buildings 15-25 Property and equipment consist of the following (in millions): December 31, 2015 December 31, 2014 Delivery, warehouse and office equipment (1) $ 235.3 $ 208.4 Leasehold improvements 54.4 44.3 Land and buildings (2) 28.9 27.9 Construction in progress 0.8 5.2 319.4 285.8 Less: Accumulated depreciation and amortization (159.9 ) (136.9 ) Total property and equipment, net $ 159.5 $ 148.9 ______________________________________________ (1) Includes equipment capital leases of $13.4 million for 2015 and $8.0 million for 2014 . (2) Includes $4.8 million for a capital lease related to a warehouse facility in both 2015 and 2014 . |
Intangible Assets with Definite Lives, Useful Life | Intangible assets with definite lives are generally amortized on a straight-line basis over the following lives: Useful Life in Years Customer relationships 10-15 Non-competition agreements 1-5 Software 3-7 The carrying amount and accumulated amortization of other intangible assets as of December 31, 2015 and 2014 are as follows (in millions): December 31, 2015 December 31, 2014 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Customer relationships $ 21.1 $ (7.3 ) $ 13.8 $ 21.1 $ (5.6 ) $ 15.5 Non-competition agreements 3.2 (2.9 ) 0.3 3.2 (2.4 ) 0.8 Internally developed and other purchased software 25.8 (10.4 ) 15.4 16.3 (10.0 ) 6.3 Total other intangible assets $ 50.1 $ (20.6 ) $ 29.5 $ 40.6 $ (18.0 ) $ 22.6 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Schedule of assets acquired and liabilities assumed | February 23, 2015 Accounts receivable $ 3.9 Inventory 3.9 Property and equipment 2.3 Liabilities (2.1 ) Total consideration $ 8.0 |
Other Consolidated Balance Sh29
Other Consolidated Balance Sheet Accounts Detail (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Changes in Allowance for Doubtful Accounts | The changes in the allowance for doubtful accounts due from customers consist of the following (in millions): Year Ended December 31, 2015 2014 2013 Balance, beginning of year $ 10.8 $ 9.4 $ 10.9 Net additions charged to operations (1) 1.3 2.2 1.1 Less: Write-offs and adjustments (1.2 ) (0.8 ) (2.6 ) Balance, end of year $ 10.9 $ 10.8 $ 9.4 ______________________________________________ (1) The net additions to the allowance for doubtful accounts were recognized in the consolidated statements of operations as a component of the Company’s selling, general and administrative expenses. |
Schedule of Other Receivables, Net | Other receivables, net consist of the following (in millions): December 31, 2015 December 31, 2014 Vendor receivables, net $ 59.0 $ 46.0 Insurance recoverables, current 1.5 1.4 Other miscellaneous receivables (1) 8.9 14.1 Total other receivables, net $ 69.4 $ 61.5 ______________________________________________ (1) Other miscellaneous receivables include amounts related primarily to notes receivables, miscellaneous tax receivables, receivables from the Company’s third party logistics customers, and other miscellaneous receivables. |
Schedule of Deposits and Prepayments | Deposits and prepayments consist of the following (in millions): December 31, 2015 December 31, 2014 Deposits (1) $ 4.7 $ 4.3 Prepaid taxes 10.6 4.1 Vendor prepayments 34.1 20.7 Racking allowances, current 6.4 6.4 Other prepayments (2) 9.2 8.2 Total deposits and prepayments $ 65.0 $ 43.7 ______________________________________________ (1) Deposits include amounts related primarily to cigarette stamps and workers’ compensation claims. (2) Other prepayments include prepayments relating to insurance policies, software licenses, rent and other miscellaneous prepayments. |
Schedule of Other Non-Current Assets, Net | Other non-current assets, net of current portion, consist of the following (in millions): December 31, 2015 December 31, 2014 Insurance recoverables $ 14.4 $ 16.6 Debt issuance costs 0.9 0.8 Insurance deposits 2.9 4.0 Racking allowances, net 6.5 5.5 Other assets 3.4 4.2 Total other non-current assets, net $ 28.1 $ 31.1 |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following (in millions): December 31, 2015 December 31, 2014 Accrued payroll, retirement and other benefits (1) $ 29.9 $ 32.5 Claims liabilities, current 11.9 10.4 Accrued customer incentives payable 20.3 18.2 Indirect taxes 7.3 7.2 Customer advances 11.0 5.1 Other accrued expenses (2) 26.5 20.0 Total accrued liabilities $ 106.9 $ 93.4 ______________________________________________ (1) The Company’s accrued payroll, retirement and other benefits include accruals for vacation, bonuses, wages, 401(k) benefit matching and the current portion of pension and post-retirement benefit obligations. (2) The Company’s other accrued expenses include accruals for goods and services, lease liabilities, construction in process, legal expenses, and other miscellaneous accruals. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following (in millions): December 31, 2015 December 31, 2014 Inventories at FIFO, net of reserves $ 524.6 $ 533.1 Less: LIFO reserve (117.2 ) (115.3 ) Total inventories at LIFO, net of reserves $ 407.4 $ 417.8 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | The Company uses the following depreciable lives for its property and equipment: Useful Life in Years Office furniture and equipment 3-10 Delivery equipment 4-10 Warehouse equipment 5-15 Leasehold improvements 3-25 Buildings 15-25 Property and equipment consist of the following (in millions): December 31, 2015 December 31, 2014 Delivery, warehouse and office equipment (1) $ 235.3 $ 208.4 Leasehold improvements 54.4 44.3 Land and buildings (2) 28.9 27.9 Construction in progress 0.8 5.2 319.4 285.8 Less: Accumulated depreciation and amortization (159.9 ) (136.9 ) Total property and equipment, net $ 159.5 $ 148.9 ______________________________________________ (1) Includes equipment capital leases of $13.4 million for 2015 and $8.0 million for 2014 . (2) Includes $4.8 million for a capital lease related to a warehouse facility in both 2015 and 2014 . |
Goodwill and Other Intangible32
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets with definite lives are generally amortized on a straight-line basis over the following lives: Useful Life in Years Customer relationships 10-15 Non-competition agreements 1-5 Software 3-7 The carrying amount and accumulated amortization of other intangible assets as of December 31, 2015 and 2014 are as follows (in millions): December 31, 2015 December 31, 2014 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Customer relationships $ 21.1 $ (7.3 ) $ 13.8 $ 21.1 $ (5.6 ) $ 15.5 Non-competition agreements 3.2 (2.9 ) 0.3 3.2 (2.4 ) 0.8 Internally developed and other purchased software 25.8 (10.4 ) 15.4 16.3 (10.0 ) 6.3 Total other intangible assets $ 50.1 $ (20.6 ) $ 29.5 $ 40.6 $ (18.0 ) $ 22.6 |
Schedule of Expected Amortization Expense | Estimated future amortization expense for intangible assets is as follows (in millions): Year ending December 31, 2016 $ 4.1 2017 4.0 2018 3.7 2019 3.6 2020 3.6 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Total long-term debt consists of the following (in millions): December 31, December 31, 2015 2014 Amounts borrowed (Credit Facility) $ 47.0 $ 55.9 Obligations under capital leases (Note 9) 13.4 12.3 Total long-term debt $ 60.4 $ 68.2 Amounts borrowed, outstanding letters of credit and amounts available to borrow, net of certain reserves required under the Credit Facility, were as follows (in millions): December 31, December 31, 2015 2014 Amounts borrowed $ 47.0 $ 55.9 Outstanding letters of credit 18.5 17.4 Amounts available to borrow (1) 123.9 114.8 ______________________________________________ (1) Excluding $100 million expansion feature. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum rental payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year and excluding contracted vehicle maintenance costs) were as follows as of December 31, 2015 (in millions): Year ending December 31, 2016 $ 44.7 2017 43.0 2018 39.9 2019 35.7 2020 30.1 2021 and thereafter 91.7 Total $ 285.1 |
Schedule of Future Minimum Lease Payments for Capital Leases | Future minimum lease payments under non-cancelable capital leases were as follows as of December 31, 2015 (in millions): Year ending December 31, 2016 $ 3.1 2017 2.5 2018 2.3 2019 2.2 2020 1.9 2021 and thereafter 7.6 Total 19.6 Less: Interest (4.0 ) Present value of future minimum lease payments 15.6 Less: current portion (2.2 ) Non-current portion $ 13.4 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The Company’s income tax provision consists of the following (in millions): Year Ended December 31, 2015 2014 2013 Current: Federal $ 19.4 $ 22.0 $ 18.7 State 3.2 3.1 2.4 Total current tax provision 22.6 25.1 21.1 Deferred: Federal 7.8 (0.6 ) 2.8 State 1.1 (0.5 ) 0.8 Foreign (0.1 ) (0.3 ) (0.3 ) Total deferred tax provision (benefit) 8.8 (1.4 ) 3.3 Total income tax provision $ 31.4 $ 23.7 $ 24.4 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate and income tax provision is as follows (in millions): Year Ended December 31, 2015 2014 2013 Federal income tax provision at the statutory rate $ 29.0 35.0 % $ 23.2 35.0 % $ 23.1 35.0 % Increase (decrease) resulting from: State income taxes, net of federal benefit 2.9 3.5 2.3 3.5 2.5 3.9 Decrease in unrecognized tax benefits (inclusive of related interest and penalty) — — (0.9 ) (1.4 ) (0.4 ) (0.6 ) Effect of foreign operations (0.1 ) (0.1 ) (0.3 ) (0.5 ) (0.3 ) (0.5 ) Change in valuation allowance (0.1 ) (0.1 ) — — — — Tax credits and other, net (0.3 ) (0.4 ) (0.6 ) (0.9 ) (0.5 ) (0.8 ) Income tax provision $ 31.4 37.9 % $ 23.7 35.7 % $ 24.4 37.0 % |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of significant temporary differences which comprise deferred tax assets and liabilities are as follows (in millions): December 31, 2015 December 31, 2014 Deferred tax assets: Employee benefits, including post-retirement benefits $ 15.2 $ 12.4 Trade and other receivables 4.1 4.1 Goodwill and intangibles 2.0 2.6 Self-insurance reserves 1.5 1.2 Other 4.0 3.7 Subtotal 26.8 24.0 Less: valuation allowance — (0.1 ) Net deferred tax assets $ 26.8 $ 23.9 Deferred tax liabilities: Inventories $ 9.0 $ 1.3 Property and equipment 27.2 22.6 Goodwill and intangibles 6.0 6.5 Other 1.6 1.6 Total deferred tax liabilities $ 43.8 $ 32.0 Total net deferred tax liabilities $ (17.0 ) $ (8.1 ) Net current deferred tax assets 1.6 8.1 Net non-current deferred tax liabilities $ (18.6 ) $ (16.2 ) |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amounts of unrecognized tax benefits for 2015 , 2014 and 2013 is as follows (in millions): Year Ended December 31, 2015 2014 2013 Balance at beginning of year $ 0.4 $ 0.6 $ 1.6 Increase in unrecognized tax benefits — — 0.2 Lapse of statute of limitations — (0.2 ) (0.2 ) Settlement (1) — — (1.0 ) Balance at end of year $ 0.4 $ 0.4 $ 0.6 ____________________________________________ (1) Relates to the settlement in 2013 of certain pre-acquisition tax liabilities which were reimbursed by the former owners of Forrest City Grocery Company. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Reconciliation of Changes in Pension Plans Benefit Obligation and Fair Value of Assets, Statement of Funded Status and Amount Recognized in Balance Sheet and Accumulated Other Comprehensive Income | The following tables provide a reconciliation of the changes in the Pension Plans’ benefit obligation and fair value of assets, the funded status of the plans and the amounts recognized in the balance sheets and AOCI as of December 31, 2015 and 2014 (in millions): Pension Benefits Other Post-retirement Benefits December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Change in Benefit Obligation: Obligation at beginning of year $ 43.6 $ 40.1 $ 3.0 $ 3.4 Interest cost 1.7 1.8 0.1 0.1 Actuarial (gain) loss (2.0 ) 5.4 0.1 (0.4 ) Benefit payments (2.8 ) (3.7 ) (0.2 ) (0.1 ) Group annuity contract discontinuance (1.3 ) — — — Settlement of accumulated benefits (2.2 ) — — — Benefit obligation at end of year $ 37.0 $ 43.6 $ 3.0 $ 3.0 Change in Plan Assets: Fair value of plan assets at beginning of year $ 40.4 $ 38.0 $ — $ — Actual return on plan assets (1.8 ) 2.8 — — Employer contributions — 3.3 0.2 0.1 Benefit payments (2.8 ) (3.7 ) (0.2 ) (0.1 ) Group annuity contract discontinuance (1.3 ) — — — Settlement of accumulated benefits (2.2 ) — — — Fair value of plan assets at end of year $ 32.3 $ 40.4 $ — $ — Funded status at end of year $ (4.7 ) $ (3.2 ) $ (3.0 ) $ (3.0 ) Amounts recognized in the balance sheet consist of: Current liabilities $ — $ — $ (0.2 ) $ (0.2 ) Non-current liabilities (4.7 ) (3.2 ) (2.8 ) (2.8 ) Total liabilities $ (4.7 ) $ (3.2 ) $ (3.0 ) $ (3.0 ) Amounts recognized in AOCI consist of: Net actuarial loss (gain) $ 17.5 $ 17.9 $ (0.2 ) $ (0.4 ) Total $ 17.5 $ 17.9 $ (0.2 ) $ (0.4 ) Additional Information: Accumulated benefit obligation $ 37.0 $ 43.6 |
Schedule of Net Periodic Benefit Cost and Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | The following table provides components of net periodic benefit cost and other changes in plan assets and benefit obligations recognized in other comprehensive income (in millions): Pension Benefits Other Post-retirement Benefits December 31, December 31, 2015 2014 2013 2015 2014 2013 Net Periodic Benefit Cost: Interest cost $ 1.7 $ 1.8 $ 1.6 $ 0.1 $ 0.1 $ 0.2 Expected return on plan assets (2.1 ) (2.5 ) (2.3 ) — — — Amortization of prior service credit — — — — — (0.1 ) Amortization of net actuarial (gain) loss 0.6 0.4 0.6 — (0.1 ) — Curtailment gain — — — — — (0.9 ) Settlement charge 1.6 — — — — — Net periodic benefit (income) cost $ 1.8 $ (0.3 ) $ (0.1 ) $ 0.1 $ — $ (0.8 ) Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: Net actuarial (gain) loss $ 1.9 $ 5.2 $ (2.8 ) $ 0.2 $ (0.4 ) $ (0.8 ) Settlement charge (1.6 ) — — — — — Amortization of prior service cost — — — — — 0.1 Amortization of actuarial gain (loss) (0.6 ) (0.4 ) (0.6 ) — 0.1 — Total net loss (gain) recognized in other comprehensive income $ (0.3 ) $ 4.8 $ (3.4 ) $ 0.2 $ (0.3 ) $ (0.7 ) |
Schedule of Assumptions Used | The following table shows the weighted-average assumptions used in the measurement of: Pension Benefits Other Post-retirement Benefits December 31, December 31, 2015 2014 2013 2015 2014 2013 Benefit Obligations: Discount rate 4.32 % 4.00 % 4.60 % 4.32 % 3.99 % 4.60 % Expected return on assets 6.00 % 5.50 % 6.55 % N/A N/A N/A Net Periodic Benefit Costs: Discount rate 4.05 % 4.60 % 3.80 % 3.99 % 4.60 % 3.85 % Expected return on assets 5.95 % 6.55 % 7.00 % N/A N/A N/A |
Schedule of Health Care Cost Trend Rates | The health care cost trend rates assumed for the end of year benefit obligation for the post-retirement benefit plans are as follows: December 31, 2015 December 31, 2014 Assumed current trend rate for next year for participants under 65 6.80% 7.25% Assumed current trend rate for next year for participants 65 and over 7.85% 6.75% Ultimate year trend rate 5.00% 5.00% Year that ultimate trend rate is reached for participants under 65 2024 2024 Year that ultimate trend rate is reached for participants 65 and over 2023 2022 |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one percent point change in assumed health care cost trend rates would have the following effects (in millions): 1% Increase 1% Decrease Effect on total of service and interest cost components of net periodic post-retirement health care benefit cost $ — $ — Effect on the health care component of the accumulated post-retirement benefit obligation $ 0.3 $ (0.3 ) |
Schedule of Fair Value of Plan Assets | The fair value measurements of the Pension Plans’ assets by asset category at December 31, 2015 are as follows (in millions): Asset Category Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 1.0 $ 1.0 $ — $ — Group trust 31.3 — 31.3 — Total $ 32.3 $ 1.0 $ 31.3 $ — The fair value measurements of the Pension Plans’ assets by asset category at December 31, 2014 are as follows (in millions): Asset Category Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 0.8 $ 0.8 $ — $ — Group trust 35.9 — 35.9 — Group annuity contract 3.7 — 3.7 — Total $ 40.4 $ 0.8 $ 39.6 $ — |
Schedule of Expected Benefit Payments | Estimated future benefit payments reflecting future service are as follows (in millions): Year ending December 31, Pension Benefits Other Post-retirement Benefits 2016 $ 2.8 $ 0.2 2017 2.8 0.2 2018 3.1 0.2 2019 2.9 0.2 2020 2.9 0.2 2021 through 2025 12.6 1.0 |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | Expected amortization from AOCI into net periodic benefit cost for the year ending December 31, 2016 (in millions): Pension Benefits Other Post-retirement Benefits Expected amortization of net actuarial loss $ 0.7 $ — Total expected amortizations for the year ended $ 0.7 $ — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted net earnings per share (dollars and shares in millions, except per share amounts): Years Ended December 31, 2015 2014 2013 Net Income Weighted-Average Shares Outstanding Net Income Per Common Share Net Income Weighted-Average Shares Outstanding Net Income Per Common Share Net Income Weighted-Average Shares Outstanding Net Income Per Common Share Basic EPS $ 51.5 23.1 $ 2.23 $ 42.7 23.1 $ 1.85 $ 41.6 23.0 $ 1.81 Effect of dilutive common share equivalents: Restricted stock units — 0.1 (0.01 ) — 0.1 (0.01 ) — — (0.01 ) Stock options — — — — 0.1 (0.01 ) — 0.2 (0.01 ) Performance shares — 0.1 (0.01 ) — — — — — — Diluted EPS $ 51.5 23.3 $ 2.21 $ 42.7 23.3 $ 1.83 $ 41.6 23.2 $ 1.79 ______________________________________________ Note: Basic and diluted earnings per share are calculated based on unrounded actual amounts. |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Securities To Be Issued and Remaining Available For Future Issuance | The following table summarizes the number of securities to be issued and remaining available for future issuance under all of the Company’s stock incentive plans as of December 31, 2015 : Number of securities to be issued upon exercise of outstanding options and vesting of RSUs Weighted-average exercise price of outstanding options and vesting of RSUs Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column 1) 2005 Long-Term Incentive Plan -RSUs 6,104 $ 0.01 — 2007 Long-Term Incentive Plan (1) 11,415 $ 8.92 — 2010 Long-Term Incentive Plan (2) 347,423 $ 0.72 1,333,236 ______________________________________________ (1) Includes non-qualified stock options and RSUs. (2) Includes non-qualified stock options, RSUs and performance shares. |
Schedule of Share-based Compensation, Activity | The following table summarizes the activity for all stock options, RSUs and performance shares under all of the Long-Term Incentive Plans (“LTIPs”) for the year ended December 31, 2015 : December 31, 2014 Activity during 2015 December 31, 2015 Outstanding Granted Vested / Exercised Canceled Outstanding Exercisable Plans Securities Number Price Number Price Number Price Number Price Number Price Number Price 2004 LTIP Options 2,252 $ 9.60 — $ — (2,252 ) $ 9.60 — $ — — $ — — $ — 2005 LTIP RSUs 6,106 0.01 — — — — (2 ) — 6,104 0.01 6,104 0.01 2007 LTIP RSUs 812 0.01 — — — — — — 812 0.01 812 0.01 Options 41,500 10.48 — — (30,897 ) 10.79 — — 10,603 9.60 10,603 9.60 2010 LTIP RSUs 192,618 0.01 63,735 (1) 0.01 (91,064 ) 0.01 (1,000 ) 0.01 164,289 0.01 — — Options 15,000 16.39 — — — — — — 15,000 16.39 15,000 16.39 Performance shares 139,796 0.01 90,263 (2) 0.01 (39,930 ) 0.01 (21,995 ) 0.01 168,134 0.01 — — Total 398,084 153,998 (164,143 ) (22,997 ) 364,942 32,519 ______________________________________________ Note: Price is weighted-average price per share. (1) Consists of non-performance RSUs. (2) In January 2015 , the Company awarded a maximum of 90,263 performance shares that would have been received if the highest level of performance was achieved. Based on the actual achievement of the performance criteria, 71,128 performance shares were determined to be earned as of December 31, 2015 . Year Ended December 31, 2015 2014 2013 Weighted-average fair value per share of grants: RSUs $ 64.94 $ 37.14 $ 49.39 Performance shares (1) $ 65.19 $ 36.80 N/A ______________________________________________ ( 1) Performance shares awarded in 2013 were ultimately canceled as the Company did not achieve the related performance targets for 2013 . |
Schedule of Stock Options, Restricted Stock Units and Performance Shares Vested and Expected to Vest | The following table summarizes stock options, RSUs and performance shares that have vested and are expected to vest as of December 31, 2015 : December 31, 2015 Outstanding Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value (1) (dollars in thousands) Plans Securities Vested Expected to vest (2) Vested Expected to vest (2) Vested Expected to vest (2) 2005 LTIP RSUs 6,104 — — — $ 500 $ — 2007 LTIP RSUs 812 — — — 67 — Options 10,603 — 1.0 — 767 — 2010 LTIP RSUs — 158,670 — — — 5,222 Performance shares — 166,453 — — — 5,828 Options 15,000 — 2.8 — 983 — Total 32,519 325,123 $ 2,317 $ 11,050 ______________________________________________ ( 1) Aggregate intrinsic value is calculated based upon the difference between the exercise price of options or RSUs and the Company’s closing common stock price on December 31, 2015 of $81.94 , multiplied by the number of instruments that are vested or expected to vest. Options and RSUs having exercise prices greater than the closing stock price noted above are excluded from this calculation. (2) Options, RSUs and performance shares that are expected to vest are net of estimated future forfeitures. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Schedule of Dividends | The Board of Directors approved the following cash dividends in 2015 (in millions, except per share data): Declaration Date Dividends Per Share Record Date Cash Payment Amount (1) Payment Date February 27, 2015 $0.13 March 12, 2015 $3.1 March 26, 2015 May 7, 2015 $0.13 May 22, 2015 $3.0 June 15, 2015 August 6, 2015 $0.13 August 21, 2015 $3.0 September 14, 2015 November 5, 2015 $0.16 November 20, 2015 $3.7 December 15, 2015 ______________________________________________ (1) Includes cash payments on declared dividends and payments made on RSUs vested subsequent to the payment date. |
Schedule of Stock Repurchase Activities | The following table summarizes the Company’s stock repurchase activities for the years ended December 31, 2015 and 2014 : Year Ended December 31, 2015 2014 Number of shares repurchased 151,183 175,917 Average price per share $ 60.70 $ 45.49 Total repurchase costs (in millions) $ 9.2 $ 8.0 |
Other Comprehensive Income (L40
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Schedule of Other Comprehensive Income and Related Tax Effects | The components of other comprehensive income (“OCI”) and the related tax effects were as follows (in millions): Year Ended December 31, 2015 2014 2013 Net Net Net Before Tax of Before Tax of Before Tax of Tax Effect Tax Tax Effect Tax Tax Effect Tax Defined benefit plan adjustments: Net actuarial gain (loss) during the year $ (2.1 ) $ 0.9 $ (1.2 ) $ (4.8 ) $ 1.7 $ (3.1 ) $ 3.6 $ (1.5 ) $ 2.1 Settlement charge 1.6 (0.6 ) 1.0 — — — — — — Amortization of prior service cost included in net income — — — — — — (0.1 ) — (0.1 ) Amortization of net actuarial loss included in net income 0.6 (0.2 ) 0.4 0.3 (0.1 ) 0.2 0.6 (0.2 ) 0.4 Net (loss) gain during the year 0.1 0.1 0.2 (4.5 ) 1.6 (2.9 ) 4.1 (1.7 ) 2.4 Foreign currency translation loss (4.9 ) — (4.9 ) (3.0 ) — (3.0 ) (1.5 ) — (1.5 ) Other comprehensive (loss) income $ (4.8 ) $ 0.1 $ (4.7 ) $ (7.5 ) $ 1.6 $ (5.9 ) $ 2.6 $ (1.7 ) $ 0.9 |
Schedule of Changes in Accumulated Other Comprehensive Income | The following table provides a summary of the changes in AOCI for the years presented (in millions): Foreign Defined Currency Benefit Plan Translation Total Balance as of December 31, 2012 $ (10.3 ) $ 3.7 $ (6.6 ) Other comprehensive income (loss) 2.4 (1.5 ) 0.9 Balance as of December 31, 2013 (7.9 ) 2.2 (5.7 ) Other comprehensive loss (2.9 ) (3.0 ) (5.9 ) Balance as of December 31, 2014 (10.8 ) (0.8 ) (11.6 ) Other comprehensive income (loss) 0.2 (4.9 ) (4.7 ) Balance as of December 31, 2015 $ (10.6 ) $ (5.7 ) $ (16.3 ) |
Segment and Geographic Inform41
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Information by Geographical Area | Information about the Company’s business operations based on the two geographic areas is as follows (in millions): Year Ended December 31, 2015 2014 2013 Net sales: United States $ 9,829.7 $ 8,989.0 $ 8,618.3 Canada 1,203.5 1,250.9 1,114.3 Corporate (1) 36.2 40.2 35.0 Total $ 11,069.4 $ 10,280.1 $ 9,767.6 Income (loss) before income taxes: United States $ 79.4 $ 70.8 $ 57.3 Canada 1.7 3.2 0.9 Corporate (2) 1.8 (7.6 ) 7.8 Total $ 82.9 $ 66.4 $ 66.0 Interest expense: United States $ 35.0 $ 32.0 $ 30.2 Canada 0.7 0.7 0.6 Corporate (3) (33.2 ) (30.3 ) (28.1 ) Total $ 2.5 $ 2.4 $ 2.7 Depreciation and amortization: United States $ 29.3 $ 24.9 $ 20.2 Canada 2.4 2.8 2.7 Corporate (4) 6.2 4.3 4.3 Total $ 37.9 $ 32.0 $ 27.2 Capital expenditures: United States $ 28.6 $ 53.3 $ 15.7 Canada 1.7 0.6 2.3 Total $ 30.3 $ 53.9 $ 18.0 _____________________________________________ (1) Consists primarily of external sales made by the Company’s consolidating warehouses, management service fee revenue, allowance for sales returns and certain other sales adjustments. (2) Consists primarily of expenses and other income, such as corporate incentives and salaries, LIFO expense, health care costs, insurance and workers’ compensation adjustments, elimination of overhead allocations and foreign exchange gains or losses. The change from 2015 to 2014 is primarily attributable to a decrease in LIFO expense. (3) Consists primarily of intercompany eliminations for interest. (4) Consists primarily of depreciation for the consolidation centers and amortization of intangible assets. The change from 2015 to 2014 is primarily attributable to upgrades of ordering technology and the acquisition of Karrys Bros. Identifiable assets by geographic area are as follows (in millions): December 31, December 31, December 31, 2015 2014 2013 Identifiable assets: United States $ 981.4 $ 913.8 $ 844.8 Canada 95.9 115.8 112.0 Total $ 1,077.3 $ 1,029.6 $ 956.8 |
Net Sales by Product Categories | The net sales for the Company’s product categories are as follows (in millions): Year Ended December 31, 2015 2014 2013 Product Category Net Sales Net Sales Net Sales Cigarettes $ 7,528.5 $ 6,942.0 $ 6,642.0 Food 1,586.1 1,462.0 1,342.3 Candy (1) 557.0 534.3 513.2 Other tobacco products 870.3 827.5 787.8 Health, beauty & general (1) 368.8 361.0 341.3 Beverages 156.6 151.8 139.1 Equipment/other 2.1 1.5 1.9 Total food/non-food products $ 3,540.9 $ 3,338.1 $ 3,125.6 Total net sales $ 11,069.4 $ 10,280.1 $ 9,767.6 _____________________________________________ (1) In 2014 , certain products were moved from the Candy category to the Health, beauty & general category to align them with the industry classifications used by the National Association of Convenience Stores. The 2013 presentation has been realigned to reflect these changes. Without the changes, net sales for Candy would have been $527.2 million for the year ended December 31, 2013 . Net sales for Health, beauty & general products would have been $327.3 million for the year ended December 31, 2013 . |
Quarterly Financial Data (Una42
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | The tables below provide the Company’s unaudited consolidated results of operations for each of the four quarters in 2015 and 2014 : Three Months Ended (in millions, except per share data) December 31, September 30, June 30, March 31, 2015 2015 2015 2015 Net sales — Cigarettes (1) $ 1,934.5 $ 2,049.6 $ 1,899.1 $ 1,645.3 Net sales — Food/non-food (1) 880.6 942.0 911.3 807.0 Net sales (1) 2,815.1 2,991.6 2,810.4 2,452.3 Cost of goods sold (1) 2,645.0 2,820.0 2,651.5 2,315.0 Gross profit (2) 170.1 171.6 158.9 137.3 Warehousing and distribution expenses (3) 91.7 92.8 88.6 79.5 Selling, general and administrative expenses (4) 48.4 52.8 47.5 47.3 Amortization of intangible assets 0.8 0.6 0.6 0.6 Total operating expenses 140.9 146.2 136.7 127.4 Income from operations 29.2 25.4 22.2 9.9 Interest expense (0.6 ) (0.6 ) (0.7 ) (0.6 ) Interest income 0.1 0.1 0.1 0.2 Foreign currency losses, net (0.5 ) (0.7 ) (0.2 ) (0.4 ) Income before income taxes 28.2 24.2 21.4 9.1 Income tax provision (10.5 ) (9.1 ) (8.2 ) (3.6 ) Net income 17.7 15.1 13.2 5.5 Basic net income per common share (5) $ 0.77 $ 0.65 $ 0.57 $ 0.24 Diluted net income per common share (5) $ 0.75 $ 0.65 $ 0.57 $ 0.24 Shares used to compute basic net income per common share 23.2 23.1 23.1 23.2 Shares used to compute diluted net income per common share 23.4 23.3 23.3 23.3 Excise taxes (1) $ 566.7 $ 607.1 $ 554.2 $ 483.7 Cigarette inventory holding gains (6) 4.7 0.6 3.8 1.0 Cigarette tax stamp inventory holding gains (7) 0.7 8.3 — — LIFO (income) expense (8) (7.3 ) 3.3 3.5 2.4 Depreciation and amortization 9.6 9.9 9.7 8.7 Stock-based compensation 2.0 2.7 2.1 1.9 Capital expenditures 5.6 10.3 11.7 2.7 ____________________________________________ (1) Excise taxes are included as a component of net sales and cost of goods sold. (2) Includes OTP tax refunds, net of tax assessments, of $0.8 million in Q2 and $0.9 million in Q1 2015 . (3) Warehousing and distribution expenses are not included as a component of the Company’s cost of goods sold, this presentation may differ from that of other registrants. (4) Selling, general and administrative (“SG&A”) expenses include acquisition and integration of $1.8 million , related primarily to the addition of Karrys Bros. consisting of $0.3 million in Q4, $0.4 million in Q3, $0.8 million in Q2, and $0.3 million in Q1. SG&A expenses also include $1.6 million related to pension settlements, consisting of $0.7 million in Q4 and $0.9 million in Q3. (5) Totals may not agree with full year amounts due to rounding. (6) Cigarette inventory holding gains represent income related to cigarette inventories on hand at the time cigarette manufacturers increase their prices. Such increases are reflected in customer pricing for all subsequent sales, including sales of inventory on hand at the time of the increase. (7) Cigarette tax stamp inventory holding gains relate to income earned on cigarette tax stamp inventory quantities on hand at the time taxing jurisdictions increase their excise taxes. (8) LIFO expense decreased in 2015 was due primarily to a decrease in the PPI for certain product categories we use to measure food/non-food LIFO expense as published by the Bureau of Labor Statistics. Three Months Ended (in millions, except per share data) December 31, September 30, June 30, March 31, 2014 2014 2014 2014 Net sales — Cigarettes (1) $ 1,764.6 $ 1,858.3 $ 1,770.8 $ 1,548.3 Net sales — Food/non-food (1) 844.0 889.1 852.4 752.6 Net sales (1) 2,608.6 2,747.4 2,623.2 2,300.9 Cost of goods sold (1) 2,454.0 2,596.0 2,479.9 2,176.5 Gross profit (2) 154.6 151.4 143.3 124.4 Warehousing and distribution expenses (3) 81.5 83.5 78.1 75.3 Selling, general and administrative expenses (4) 49.5 47.0 44.0 43.9 Amortization of intangible assets 0.6 0.7 0.7 0.6 Total operating expenses 131.6 131.2 122.8 119.8 Income from operations 23.0 20.2 20.5 4.6 Interest expense (0.6 ) (0.5 ) (0.6 ) (0.7 ) Interest income 0.2 0.1 0.2 0.1 Foreign currency gains (losses), net (0.1 ) 0.2 (0.2 ) — Income before income taxes 22.5 20.0 19.9 4.0 Income tax provision (7.9 ) (6.3 ) (7.9 ) (1.6 ) Net income 14.6 13.7 12.0 2.4 Basic net income per common share (5) $ 0.63 $ 0.59 $ 0.52 $ 0.11 Diluted net income per common share (5) $ 0.62 $ 0.59 $ 0.52 $ 0.10 Shares used to compute basic net income per common share 23.1 23.1 23.1 23.0 Shares used to compute diluted net income per common share 23.4 23.3 23.2 23.2 Excise taxes (1) $ 530.3 $ 567.6 $ 539.9 $ 472.5 Cigarette inventory holding gains (6) 4.2 0.2 3.3 0.5 Candy inventory holding gains (7) 0.8 5.2 — — LIFO expense 2.7 6.5 4.3 2.8 Depreciation and amortization 8.6 8.3 7.9 7.2 Stock-based compensation 1.8 1.5 1.5 1.3 Capital expenditures (8) 29.8 9.3 9.8 5.0 ______________________________________________ (1) Excise taxes are included as a component of net sales and cost of goods sold. (2) Includes OTP tax refunds, net of tax assessments, of $6.2 million in Q4 and $2.3 million in Q3 2014 . (3) Warehousing and distribution expenses are not included as a component of the Company’s cost of goods sold, this presentation may differ from that of other registrants. (4) SG&A expenses include acquisition and integration expenses of $1.4 million related primarily to Ohio and the addition of new customers, consisting of $0.7 million in Q4, $0.6 million in Q3, $0.1 million in Q2, and none in Q1. (5) Totals may not agree with full year amounts due to rounding. (6) Cigarette inventory holding gains represent income related to cigarette inventories on hand at the time cigarette manufacturers increase their prices. Such increases are reflected in customer pricing for all subsequent sales, including sales of inventory on hand at the time of the increase. (7) Candy inventory holding gains represent income related to candy inventories on hand at the time candy manufacturers increase their prices. Such increases are reflected in customer pricing for all subsequent sales, including sales of inventory on hand at the time of the increase. (8) Capital expenditures increased in Q4 2014 due primarily to facility projects in Ohio and Sacramento along with expenditures to support our new customers. |
Summary of Company Information
Summary of Company Information (Details) | Dec. 31, 2015customer_locationsdistribution_centers |
Summary of Company Information [Line Items] | |
Number of customer locations | customer_locations | 36,500 |
Number of distribution centers | 28 |
Number of distribution facilities operated as a third party logistics provider | 2 |
United States | |
Summary of Company Information [Line Items] | |
Number of distribution centers | 24 |
Canada | |
Summary of Company Information [Line Items] | |
Number of distribution centers | 4 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($)customers | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($)customers | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)customerssupplier | Dec. 31, 2014USD ($)customers | Dec. 31, 2013USD ($) | |
Summary of Significant Accounting Policies [Line Items] | |||||||||||
Management service fee revenue as a percentage of total net sales, less than 1% | 1.00% | 1.00% | 1.00% | ||||||||
Vendor rebates and promotional allowances | $ 191,400,000 | $ 162,800,000 | $ 149,800,000 | ||||||||
Excise taxes | $ 566,700,000 | $ 607,100,000 | $ 554,200,000 | $ 483,700,000 | $ 530,300,000 | $ 567,600,000 | $ 539,900,000 | $ 472,500,000 | $ 2,200,000,000 | $ 2,100,000,000 | $ 2,100,000,000 |
Excise taxes as a percentage of net sales | 20.00% | 21.00% | 21.00% | ||||||||
Excise taxes as a percentage of cost of goods sold | 21.00% | 22.00% | 22.00% | ||||||||
Book overdrafts | $ 29,200,000 | $ 29,100,000 | $ 29,200,000 | $ 29,100,000 | |||||||
Percentage of LIFO inventory | 88.00% | 85.00% | 88.00% | 85.00% | |||||||
Impairment of long-lived assets, property and equipment | $ 0 | $ 0 | $ 0 | ||||||||
Impairment of long-lived assets, definite-lived intangible assets | 0 | 0 | 0 | ||||||||
Goodwill impairment | (22,900,000) | (22,900,000) | (22,900,000) | ||||||||
Capitalized computer software, amount | 9,500,000 | 4,400,000 | $ 2,000,000 | ||||||||
Unamortized debt issuance costs | $ 1,200,000 | $ 1,100,000 | 1,200,000 | 1,100,000 | |||||||
Self insurance gross obligation, long-term | 26,600,000 | 27,500,000 | 26,600,000 | 27,500,000 | |||||||
Self insurance gross obligation, short-term | 11,900,000 | 10,400,000 | 11,900,000 | 10,400,000 | |||||||
Self insurance liabilities net of insurance recoverables, long-term | 12,200,000 | 10,900,000 | 12,200,000 | 10,900,000 | |||||||
Self insurance liabilities net of insurance recoverables, short-term | 10,400,000 | $ 9,000,000 | 10,400,000 | $ 9,000,000 | |||||||
Workers' Compensation, General and Auto Liabilities Program | |||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||
Self-insurance pre-claim limit, amount | 500,000 | 500,000 | |||||||||
Health and Welfare Program | |||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||
Self-insurance pre-claim limit, amount | $ 250,000 | $ 250,000 | |||||||||
Minimum | |||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||
Capitalized computer software, amortization period | 3 years | ||||||||||
Maximum | |||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||
Capitalized computer software, amortization period | 7 years | ||||||||||
Office furniture and equipment | Minimum | |||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||
Fixed assets useful lives | 3 years | ||||||||||
Office furniture and equipment | Maximum | |||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||
Fixed assets useful lives | 10 years | ||||||||||
Delivery equipment | Minimum | |||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||
Fixed assets useful lives | 4 years | ||||||||||
Delivery equipment | Maximum | |||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||
Fixed assets useful lives | 10 years | ||||||||||
Warehouse equipment | Minimum | |||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||
Fixed assets useful lives | 5 years | ||||||||||
Warehouse equipment | Maximum | |||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||
Fixed assets useful lives | 15 years | ||||||||||
Leasehold improvements | Minimum | |||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||
Fixed assets useful lives | 3 years | ||||||||||
Leasehold improvements | Maximum | |||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||
Fixed assets useful lives | 25 years | ||||||||||
Buildings | Minimum | |||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||
Fixed assets useful lives | 15 years | ||||||||||
Buildings | Maximum | |||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||
Fixed assets useful lives | 25 years | ||||||||||
Customer Concentration Risk | |||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||
Customers accounted for 10% or more of accounts receivable, number | customers | 0 | 0 | 0 | 0 | |||||||
Customer Concentration Risk | Couche-Tard | Net sales | |||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||
Concentration risk, percentage | 14.20% | 14.50% | 14.70% | ||||||||
Supplier Concentration Risk | |||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||
Number of significant suppliers | supplier | 2 | ||||||||||
Supplier Concentration Risk | Philip Morris USA, Inc. | Product purchase | |||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||
Concentration risk, percentage | 29.00% | 28.00% | 28.00% | ||||||||
Supplier Concentration Risk | R.J. Reynolds Tobacco Company | Product purchase | |||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||
Concentration risk, percentage | 17.00% | 14.00% | 14.00% | ||||||||
Product Concentration Risk | Net sales | Cigarettes | |||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||
Concentration risk, percentage | 68.00% | 67.50% | 68.00% | ||||||||
Product Concentration Risk | Gross profit | Cigarettes | |||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||
Concentration risk, percentage | 28.30% | 27.10% | 30.00% | ||||||||
Customer relationships | Minimum | |||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||
Intangible assets, useful life | 10 years | ||||||||||
Customer relationships | Maximum | |||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||
Intangible assets, useful life | 15 years | ||||||||||
Non-competition agreements | Minimum | |||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||
Intangible assets, useful life | 1 year | ||||||||||
Non-competition agreements | Maximum | |||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||
Intangible assets, useful life | 5 years | ||||||||||
Software | Minimum | |||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||
Intangible assets, useful life | 3 years | ||||||||||
Software | Maximum | |||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||
Intangible assets, useful life | 7 years |
Acquisition (Details)
Acquisition (Details) CAD in Millions, $ in Millions | Feb. 23, 2015CAD | Feb. 23, 2015USD ($) | Dec. 17, 2012USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Business Acquisition [Line Items] | ||||||
Acquisition related costs | $ 1.8 | $ 1.4 | ||||
Payment for previous acquisition | $ 1 | |||||
Karrys Bros | ||||||
Business Acquisition [Line Items] | ||||||
Total consideration | CAD 10 | $ 8 | ||||
Acquisition related costs | 1.7 | |||||
Davenport | ||||||
Business Acquisition [Line Items] | ||||||
Consideration transferred | $ 41.2 | |||||
Indemnity holdback | $ 4 | |||||
Indemnity holdback liability | $ 1 | $ 1 |
Acquisition - Assets Acquired a
Acquisition - Assets Acquired and Liabilities Assumed (Details) - Feb. 23, 2015 - Karrys Bros CAD in Millions, $ in Millions | CAD | USD ($) |
Business Acquisition [Line Items] | ||
Accounts receivable | $ 3.9 | |
Inventory | 3.9 | |
Property and equipment | 2.3 | |
Liabilities | (2.1) | |
Total consideration | CAD 10 | $ 8 |
Other Consolidated Balance Sh47
Other Consolidated Balance Sheet Accounts Detail (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance, beginning of year | $ 10.8 | $ 9.4 | $ 10.9 |
Net additions charged to operations | 1.3 | 2.2 | 1.1 |
Less: Write-offs and adjustments | (1.2) | (0.8) | (2.6) |
Balance, end of year | 10.9 | 10.8 | $ 9.4 |
Other Receivables, Net, Current [Abstract] | |||
Vendor receivables, net | 59 | 46 | |
Insurance recoverables, current | 1.5 | 1.4 | |
Other | 8.9 | 14.1 | |
Total other receivables, net | 69.4 | 61.5 | |
Deposits and Prepayments [Abstract] | |||
Deposits | 4.7 | 4.3 | |
Prepaid taxes | 10.6 | 4.1 | |
Vendor prepayments | 34.1 | 20.7 | |
Racking allowances, current | 6.4 | 6.4 | |
Other prepayments | 9.2 | 8.2 | |
Total deposits and prepayments | 65 | 43.7 | |
Other Assets, Noncurrent [Abstract] | |||
Insurance recoverables | 14.4 | 16.6 | |
Debt issuance costs | 0.9 | 0.8 | |
Insurance deposits | 2.9 | 4 | |
Racking allowances, net | 6.5 | 5.5 | |
Other assets | 3.4 | 4.2 | |
Total other non-current assets, net | 28.1 | 31.1 | |
Accrued Liabilities, Current [Abstract] | |||
Accrued payroll, retirement and other benefits | 29.9 | 32.5 | |
Claims liabilities, current | 11.9 | 10.4 | |
Accrued customer incentives payable | 20.3 | 18.2 | |
Indirect taxes | 7.3 | 7.2 | |
Customer advances | 11 | 5.1 | |
Other accrued expenses | 26.5 | 20 | |
Total accrued liabilities | $ 106.9 | $ 93.4 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Inventory [Line Items] | |||||||||||
Inventories at FIFO, net of reserves | $ 524.6 | $ 533.1 | $ 524.6 | $ 533.1 | |||||||
Less: LIFO reserve | (117.2) | (115.3) | (117.2) | (115.3) | |||||||
Total inventories at LIFO, net of reserves | 407.4 | 417.8 | 407.4 | 417.8 | |||||||
LIFO expense | (7.3) | $ 3.3 | $ 3.5 | $ 2.4 | 2.7 | $ 6.5 | $ 4.3 | $ 2.8 | 1.9 | 16.3 | $ 8.7 |
LIFO decrement | 12.2 | 4.6 | |||||||||
Reduction in LIFO expense | 0.7 | 0.3 | |||||||||
United States | |||||||||||
Inventory [Line Items] | |||||||||||
Less: LIFO reserve | $ (117.2) | $ (115.3) | $ (117.2) | $ (115.3) |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 319.4 | $ 285.8 | |
Less: Accumulated depreciation and amortization | (159.9) | (136.9) | |
Total property and equipment, net | 159.5 | 148.9 | |
Depreciation and amortization expenses | 26 | 21.5 | $ 20 |
Delivery, warehouse and office equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 235.3 | 208.4 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 54.4 | 44.3 | |
Land and buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 28.9 | 27.9 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 0.8 | 5.2 | |
Equipment capital leases | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 13.4 | 8 | |
Warehouse equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 4.8 | $ 4.8 |
Goodwill and Other Intangible50
Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill [Roll Forward] | ||
Goodwill | $ 22.9 | $ 22.9 |
Goodwill and Other Intangible51
Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||
Gross Carrying Amount | $ 50.1 | $ 40.6 | $ 50.1 | $ 40.6 | |||||||
Accumulated Amortization | (20.6) | (18) | (20.6) | (18) | |||||||
Net Carrying Amount | 29.5 | 22.6 | 29.5 | 22.6 | |||||||
Amortization of intangible assets | 0.8 | $ 0.6 | $ 0.6 | $ 0.6 | 0.6 | $ 0.7 | $ 0.7 | $ 0.6 | 2.6 | 2.6 | $ 2.7 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||||||||||
2,016 | 4.1 | 4.1 | |||||||||
2,017 | 4 | 4 | |||||||||
2,018 | 3.7 | 3.7 | |||||||||
2,019 | 3.6 | 3.6 | |||||||||
2,020 | 3.6 | 3.6 | |||||||||
Customer relationships | |||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||
Gross Carrying Amount | 21.1 | 21.1 | 21.1 | 21.1 | |||||||
Accumulated Amortization | (7.3) | (5.6) | (7.3) | (5.6) | |||||||
Net Carrying Amount | 13.8 | 15.5 | 13.8 | 15.5 | |||||||
Non-competition agreements | |||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||
Gross Carrying Amount | 3.2 | 3.2 | 3.2 | 3.2 | |||||||
Accumulated Amortization | (2.9) | (2.4) | (2.9) | (2.4) | |||||||
Net Carrying Amount | 0.3 | 0.8 | 0.3 | 0.8 | |||||||
Internally developed and other purchased software | |||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||
Gross Carrying Amount | 25.8 | 16.3 | 25.8 | 16.3 | |||||||
Accumulated Amortization | (10.4) | (10) | (10.4) | (10) | |||||||
Net Carrying Amount | $ 15.4 | $ 6.3 | $ 15.4 | $ 6.3 |
Long-term Debt (Details)
Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Amounts borrowed | $ 60.4 | $ 68.2 |
Outstanding letters of credit | 18.5 | 17.4 |
Amounts available to borrow | 123.9 | 114.8 |
Amounts borrowed (Credit Facility) | ||
Debt Instrument [Line Items] | ||
Amounts borrowed | 47 | 55.9 |
Obligations under capital leases | ||
Debt Instrument [Line Items] | ||
Amounts borrowed | $ 13.4 | $ 12.3 |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 11, 2016 | |
Debt Instrument [Line Items] | ||||
Amortization of debt issuance costs | $ 300,000 | $ 300,000 | $ 400,000 | |
Unamortized debt issuance costs | $ 1,200,000 | 1,100,000 | ||
Minimum | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility, margin added to variable interest rate | 1.25% | |||
Maximum | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility, margin added to variable interest rate | 1.75% | |||
Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility, potentially additional borrowing capacity | $ 100,000,000 | |||
Revolving credit facility, permitted aggregate stock repurchases | 75,000,000 | |||
Revolving credit facility, maximum permitted stock repurchases in any year | 20,000,000 | |||
Revolving credit facility, ceiling for dividends | 100,000,000 | |||
Revolving credit facility, maximum capacity for permitted acquisitions | 150,000,000 | |||
Revolving credit facility, remaining balance for stock repurchases | 71,800,000 | |||
Revolving credit facility, remaining balance for dividends | 90,300,000 | |||
Revolving credit facility, remaining balance for permitted acquisitions | 150,000,000 | |||
Revolving credit facility, average borrowings | 39,600,000 | 14,800,000 | ||
Revolving credit facility, minimum amount borrowed | 0 | 0 | ||
Revolving credit facility, maximum amount borrowed | $ 120,900,000 | $ 80,300,000 | ||
Revolving credit facility, weighted-average interest rate | 1.60% | 1.60% | ||
Total unused facility fees and letter of credit participation fees | $ 600,000 | $ 700,000 | $ 800,000 | |
Subsequent Event | Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility maximum borrowing capacity | $ 300,000,000 | |||
Revolving credit facility, potentially additional borrowing capacity | 400,000,000 | |||
Debt instrument, fee amount | 400,000 | |||
Seventh Amendment | Subsequent Event | Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility maximum borrowing capacity | $ 200,000,000 |
Commitments and Contingencies54
Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Purchase commitment, amount | $ 43.1 | $ 40.1 | |
Rental expenses for operating and month-to-month leases | 57.9 | 50.4 | $ 45.7 |
Capital lease obligations | 15.6 | 14 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,016 | 44.7 | ||
2,017 | 43 | ||
2,018 | 39.9 | ||
2,019 | 35.7 | ||
2,020 | 30.1 | ||
2021 and thereafter | 91.7 | ||
Total | 285.1 | ||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,016 | 3.1 | ||
2,017 | 2.5 | ||
2,018 | 2.3 | ||
2,019 | 2.2 | ||
2,020 | 1.9 | ||
2021 and thereafter | 7.6 | ||
Total | 19.6 | ||
Less: Interest | (4) | ||
Present value of future minimum lease payments | 15.6 | ||
Less: current portion | (2.2) | ||
Non-current portion | 13.4 | ||
Outstanding letters of credit | $ 18.5 | $ 17.4 | |
Majority of standby letters of credit maturity period | 1 year |
Commitments and Contingencies -
Commitments and Contingencies - Litigation (Details) - Lawsuit Against Sonitrol Corporation [Member] $ in Thousands | Apr. 11, 2014USD ($) | Jul. 19, 2012issue |
Gain Contingencies [Line Items] | ||
Number of issues appealed and upheld by trial court's ruling | 2 | |
Number of issues being appealed | 3 | |
Amount of settlement awarded | $ | $ 2,750 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provisions (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||||||||||
Federal | $ 19.4 | $ 22 | $ 18.7 | ||||||||
State | 3.2 | 3.1 | 2.4 | ||||||||
Total current tax provision | 22.6 | 25.1 | 21.1 | ||||||||
Deferred: | |||||||||||
Federal | 7.8 | (0.6) | 2.8 | ||||||||
State | 1.1 | (0.5) | 0.8 | ||||||||
Foreign | (0.1) | (0.3) | (0.3) | ||||||||
Total deferred tax provision (benefit) | 8.8 | (1.4) | 3.3 | ||||||||
Income tax provision | $ 10.5 | $ 9.1 | $ 8.2 | $ 3.6 | $ 7.9 | $ 6.3 | $ 7.9 | $ 1.6 | $ 31.4 | $ 23.7 | $ 24.4 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||||||||||
Federal income tax provision at the statutory rate | $ 29 | $ 23.2 | $ 23.1 | ||||||||
State income taxes, net of federal benefit | 2.9 | 2.3 | 2.5 | ||||||||
Decrease in unrecognized tax benefits (inclusive of related interest and penalty) | 0 | (0.9) | (0.4) | ||||||||
Effect of foreign operations | (0.1) | (0.3) | (0.3) | ||||||||
Change in valuation allowance | (0.1) | 0 | 0 | ||||||||
Tax credits and other, net | (0.3) | (0.6) | (0.5) | ||||||||
Income tax provision | $ 10.5 | $ 9.1 | $ 8.2 | $ 3.6 | $ 7.9 | $ 6.3 | $ 7.9 | $ 1.6 | $ 31.4 | $ 23.7 | $ 24.4 |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||||||||||
Federal income tax provision at the statutory rate | 35.00% | 35.00% | 35.00% | ||||||||
State income taxes, net of federal benefit | 3.50% | 3.50% | 3.90% | ||||||||
Decrease in unrecognized tax benefits (inclusive of related interest and penalty) | 0.00% | (1.40%) | (0.60%) | ||||||||
Effect of foreign operations | (0.10%) | (0.50%) | (0.50%) | ||||||||
Non-deductible acquisition costs | (0.10%) | 0.00% | 0.00% | ||||||||
Tax credits and other, net | (0.40%) | (0.90%) | (0.80%) | ||||||||
Effective tax rate | 37.90% | 35.70% | 37.00% | ||||||||
Income tax benefit related to expiration of statute of limitations for uncertain tax positions and adjustment to prior year's estimates | $ 0.3 | $ 1.8 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Employee benefits, including post-retirement benefits | $ 15.2 | $ 12.4 |
Trade and other receivables | 4.1 | 4.1 |
Goodwill and intangibles | 2 | 2.6 |
Self-insurance reserves | 1.5 | 1.2 |
Other | 4 | 3.7 |
Subtotal | 26.8 | 24 |
Less: valuation allowance | 0 | (0.1) |
Net deferred tax assets | 26.8 | 23.9 |
Deferred tax liabilities: | ||
Inventories | 9 | 1.3 |
Property and equipment | 27.2 | 22.6 |
Goodwill and intangibles | 6 | 6.5 |
Other | 1.6 | 1.6 |
Total deferred tax liabilities | 43.8 | 32 |
Total net deferred tax liabilities | (17) | (8.1) |
Net current deferred tax assets | 1.6 | 8.1 |
Net non-current deferred tax liabilities | $ (18.6) | $ (16.2) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 400,000 | $ 600,000 | $ 1,600,000 |
Increase in unrecognized tax benefits | 0 | 0 | 200,000 |
Lapse of statute of limitations | 0 | (200,000) | (200,000) |
Settlement | 0 | 0 | (1,000,000) |
Balance at end of year | 400,000 | 400,000 | 600,000 |
Total gross amount of unrecognized tax benefits that would impact effective tax rate | 400,000 | ||
The expiration of the statute of limitations for certain tax positions in future years and expected settlement of certain tax audit that could impact unrecognized tax benefits | 200,000 | ||
Income taxes benefit related to recovery of interest associated with expiration of statute of limitations for certain unrecognized tax position | $ 200,000 | $ 100,000 | |
Estimated interest and penalties related to unrecognized tax benefits | 300,000 | ||
Estimated interest related to unrecognized tax benefits | 200,000 | ||
Estimated penalties related to unrecognized tax benefits | $ 100,000 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) | 12 Months Ended | ||||
Dec. 31, 2015USD ($)entrant | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 30, 2015 | Sep. 30, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of new entrants since plans were frozen | entrant | 0 | ||||
Multi-employer defined benefit plan, contributions | $ 400,000 | $ 300,000 | |||
Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Increase in funded status | (1,500,000) | ||||
Funded status at end of year | (4,700,000) | (3,200,000) | |||
Actual return on plan assets | (1,800,000) | 2,800,000 | |||
Interest cost | 1,700,000 | 1,800,000 | $ 1,600,000 | ||
Actuarial loss | (2,000,000) | $ 5,400,000 | |||
Change in actuarial assumptions | 800,000 | ||||
Gain from increase in discount rates | 1,300,000 | ||||
Loss due to other items | $ 100,000 | ||||
Average future life expectancy | 21 years 3 months 18 days | ||||
Pension plan discount rate | 4.32% | 4.00% | 4.60% | 4.20% | 4.00% |
Estimated future employer contributions in next fiscal year | $ 0 | ||||
Other Post-retirement Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Funded status at end of year | (3,000,000) | $ (3,000,000) | |||
Actual return on plan assets | 0 | 0 | |||
Interest cost | 100,000 | 100,000 | $ 200,000 | ||
Actuarial loss | $ 100,000 | $ (400,000) | |||
Remaining service life | 5 years 3 months 18 days | ||||
Pension plan discount rate | 4.32% | 3.99% | 4.60% | ||
Estimated future employer contributions in next fiscal year | $ 200,000 | ||||
Cash and cash equivalents | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Current target allocations, minimum | 0.00% | ||||
Current target allocations, maximum | 5.00% | ||||
Equity | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Current target allocations, minimum | 29.00% | ||||
Current target allocations, maximum | 37.00% | ||||
Fixed Income | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Current target allocations, minimum | 63.00% | ||||
Current target allocations, maximum | 71.00% |
Employee Benefit Plans - Change
Employee Benefit Plans - Change in Benefit Obligation and Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Amounts recognized in the balance sheet consist of: | |||
Non-current liabilities | $ (7.5) | $ (6) | |
Pension Benefits | |||
Change in Benefit Obligation: | |||
Obligation at beginning of year | 43.6 | 40.1 | |
Interest cost | 1.7 | 1.8 | $ 1.6 |
Actuarial (gain) loss | (2) | 5.4 | |
Benefit payments | (2.8) | (3.7) | |
Group annuity contract discontinuance | (1.3) | 0 | |
Settlement of accumulated benefits | (2.2) | 0 | |
Benefit obligation at end of year | 37 | 43.6 | 40.1 |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 40.4 | 38 | |
Actual return on plan assets | (1.8) | 2.8 | |
Employer contributions | 0 | 3.3 | |
Benefit payments | (2.8) | (3.7) | |
Group annuity contract discontinuance | (1.3) | 0 | |
Settlement of accumulated benefits | (2.2) | 0 | |
Fair value of plan assets at end of year | 32.3 | 40.4 | 38 |
Defined Benefit Plan, Funded Status of Plan [Abstract] | |||
Funded status at end of year | (4.7) | (3.2) | |
Amounts recognized in the balance sheet consist of: | |||
Current liabilities | 0 | 0 | |
Non-current liabilities | (4.7) | (3.2) | |
Total liabilities | (4.7) | (3.2) | |
Amounts recognized in AOCI consist of: | |||
Net actuarial loss (gain) | 17.5 | 17.9 | |
Total | 17.5 | 17.9 | |
Accumulated benefit obligation | 37 | 43.6 | |
Settlement charge | 1.6 | 0 | 0 |
Other Post-retirement Benefits | |||
Change in Benefit Obligation: | |||
Obligation at beginning of year | 3 | 3.4 | |
Interest cost | 0.1 | 0.1 | 0.2 |
Actuarial (gain) loss | 0.1 | (0.4) | |
Benefit payments | (0.2) | (0.1) | |
Group annuity contract discontinuance | 0 | 0 | |
Settlement of accumulated benefits | 0 | 0 | |
Benefit obligation at end of year | 3 | 3 | 3.4 |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 0.2 | 0.1 | |
Benefit payments | (0.2) | (0.1) | |
Group annuity contract discontinuance | 0 | 0 | |
Settlement of accumulated benefits | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | 0 |
Defined Benefit Plan, Funded Status of Plan [Abstract] | |||
Funded status at end of year | (3) | (3) | |
Amounts recognized in the balance sheet consist of: | |||
Current liabilities | (0.2) | (0.2) | |
Non-current liabilities | (2.8) | (2.8) | |
Total liabilities | (3) | (3) | |
Amounts recognized in AOCI consist of: | |||
Net actuarial loss (gain) | (0.2) | (0.4) | |
Total | (0.2) | (0.4) | |
Settlement charge | $ 0 | $ 0 | $ 0 |
Employee Benefit Plans - Net Pe
Employee Benefit Plans - Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net Periodic Benefit Cost: | |||
Settlement charge and curtailment (gain) | $ 1.6 | $ 0 | $ (0.9) |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: | |||
Net actuarial (gain) loss | 2.1 | 4.8 | (3.6) |
Settlement charge | 1.6 | ||
Amortization of prior service cost | 0 | 0 | 0.1 |
Amortization of actuarial gain (loss) | (0.6) | (0.3) | (0.6) |
Total net loss (gain) recognized in other comprehensive income | (0.1) | 4.5 | (4.1) |
Pension Benefits | |||
Net Periodic Benefit Cost: | |||
Interest cost | 1.7 | 1.8 | 1.6 |
Expected return on plan assets | (2.1) | (2.5) | (2.3) |
Amortization of prior service credit | 0 | 0 | 0 |
Amortization of net actuarial (gain) loss | 0.6 | 0.4 | 0.6 |
Settlement charge and curtailment (gain) | 0 | 0 | 0 |
Settlement charge | 1.6 | 0 | 0 |
Net periodic benefit (income) cost | 1.8 | (0.3) | (0.1) |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: | |||
Net actuarial (gain) loss | 1.9 | 5.2 | (2.8) |
Settlement charge | (1.6) | 0 | 0 |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of actuarial gain (loss) | (0.6) | (0.4) | (0.6) |
Total net loss (gain) recognized in other comprehensive income | $ (0.3) | 4.8 | (3.4) |
Defined Benefit Plan, Average Future Life Expectancy | 21 years 3 months 18 days | ||
Settlement of accumulated benefits | $ (2.2) | 0 | |
Other Post-retirement Benefits | |||
Net Periodic Benefit Cost: | |||
Interest cost | 0.1 | 0.1 | 0.2 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service credit | 0 | 0 | (0.1) |
Amortization of net actuarial (gain) loss | 0 | (0.1) | 0 |
Settlement charge and curtailment (gain) | 0 | 0 | (0.9) |
Settlement charge | 0 | 0 | 0 |
Net periodic benefit (income) cost | 0.1 | 0 | (0.8) |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: | |||
Net actuarial (gain) loss | 0.2 | (0.4) | (0.8) |
Settlement charge | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | 0.1 |
Amortization of actuarial gain (loss) | 0 | 0.1 | 0 |
Total net loss (gain) recognized in other comprehensive income | $ 0.2 | (0.3) | $ (0.7) |
Defined Benefit Plan, Remaining Service Life of Active Participants | 5 years 3 months 18 days | ||
Settlement of accumulated benefits | $ 0 | $ 0 |
Employee Benefit Plans - Assump
Employee Benefit Plans - Assumptions Used (Details) | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 30, 2015 | Sep. 30, 2015 | |
Pension Benefits | |||||
Benefit Obligations: | |||||
Discount rate | 4.32% | 4.00% | 4.60% | 4.20% | 4.00% |
Expected return on assets | 6.00% | 5.50% | 6.55% | ||
Net Periodic Benefit Costs: | |||||
Discount rate | 4.05% | 4.60% | 3.80% | ||
Expected return on assets | 5.95% | 6.55% | 7.00% | ||
Other Post-retirement Benefits | |||||
Benefit Obligations: | |||||
Discount rate | 4.32% | 3.99% | 4.60% | ||
Net Periodic Benefit Costs: | |||||
Discount rate | 3.99% | 4.60% | 3.85% |
Employee Benefit Plans - Health
Employee Benefit Plans - Health Care Cost Trend Rates (Details) - Other Post-retirement Benefits | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Ultimate year trend rate | 5.00% | 5.00% |
Age under 65 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assumed current trend rate for next year for participants under 65 | 6.80% | 7.25% |
Age 65 and over | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assumed current trend rate for next year for participants 65 and over | 7.85% | 6.75% |
Employee Benefit Plans - Effect
Employee Benefit Plans - Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates (Details) - Other Post-retirement Benefits $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract] | |
Effect of one percentage point increase on total of service and interest cost components of net periodic post-retirement health care benefit cost | $ 0 |
Effect of one percentage point decrease on total of service and interest cost components of net periodic post-retirement health care benefit cost | 0 |
Effect of one percentage point increase on the health care component of the accumulated post-retirement benefit obligation | 0.3 |
Effect of one percentage point decrease on the health care component of the accumulated post-retirement benefit obligation | $ (0.3) |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value of Plan Assets (Details) - Pension Benefits - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Annuity Discontinuance, Plan Assets | $ 1.3 | $ 0 | |
Defined Benefit Plan, Annuity Discontinuance, Benefit Obligation | 1.3 | 0 | |
Fair value of plan assets | 32.3 | 40.4 | $ 38 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 0.8 | |
Significant Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 31.3 | 39.6 | |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 0.8 | |
Cash and cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 0.8 | |
Cash and cash equivalents | Significant Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash and cash equivalents | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Group trust | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 31.3 | 35.9 | |
Group trust | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Group trust | Significant Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 31.3 | 35.9 | |
Group trust | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | 0 | |
Group annuity contract | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.7 | ||
Group annuity contract | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Group annuity contract | Significant Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.7 | ||
Group annuity contract | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 |
Employee Benefit Plans - Estima
Employee Benefit Plans - Estimated Future Contributions and Benefit Payments (Details) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Pension Benefits | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2,016 | $ 2,800,000 |
2,017 | 2,800,000 |
2,018 | 3,100,000 |
2,019 | 2,900,000 |
2,020 | 2,900,000 |
2021 through 2025 | 12,600,000 |
Estimated future employer contributions in next fiscal year | 0 |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | |
Expected amortization of net actuarial loss | 700,000 |
Total expected amortizations for the year ended | 700,000 |
Other Post-retirement Benefits | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2,016 | 200,000 |
2,017 | 200,000 |
2,018 | 200,000 |
2,019 | 200,000 |
2,020 | 200,000 |
2021 through 2025 | 1,000,000 |
Estimated future employer contributions in next fiscal year | 200,000 |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | |
Expected amortization of net actuarial loss | 0 |
Total expected amortizations for the year ended | $ 0 |
Employee Benefit Plans - Saving
Employee Benefit Plans - Savings Plans (Details) | Jan. 01, 2016CAD | Dec. 31, 2015CAD | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Defined Contribution Plan Disclosure [Line Items] | |||||
Maximum annual contribution | CAD 25,370 | CAD 24,930 | $ 18,000 | ||
Additional annual contribution | 6,000 | ||||
Employer discretionary contribution amount | $ 3,100,000 | $ 3,000,000 | $ 2,800,000 | ||
Minimum | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Maximum annual contribution employees could elect to contribute, percent | 1.00% | 1.00% | |||
Maximum | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Maximum annual contribution employees could elect to contribute, percent | 75.00% | 75.00% | |||
United States | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Employer matching contribution, percent of match | 50.00% | 50.00% | |||
Maximum annual contribution employees could elect to contribute, percent | 3.00% | 3.00% | |||
Percentage of employees' base salary for which Company contributes a matching contribution | 6.00% | 6.00% | |||
Canada | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Employer matching contribution, percent of match | 50.00% | 50.00% | |||
Percentage of employees' base salary for which Company contributes a matching contribution | 6.00% | 6.00% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net income | $ 17.7 | $ 15.1 | $ 13.2 | $ 5.5 | $ 14.6 | $ 13.7 | $ 12 | $ 2.4 | $ 51.5 | $ 42.7 | $ 41.6 |
Weighted-average shares outstanding, basic EPS | 23.2 | 23.1 | 23.1 | 23.2 | 23.1 | 23.1 | 23.1 | 23 | 23.1 | 23.1 | 23 |
Net income per common share, basic EPS (in dollars per share) | $ 0.77 | $ 0.65 | $ 0.57 | $ 0.24 | $ 0.63 | $ 0.59 | $ 0.52 | $ 0.11 | $ 2.23 | $ 1.85 | $ 1.81 |
Effect of dilutive common share equivalents: [Abstract] | |||||||||||
Net income, diluted | $ 51.5 | $ 42.7 | $ 41.6 | ||||||||
Weighted-average shares outstanding, diluted EPS | 23.4 | 23.3 | 23.3 | 23.3 | 23.4 | 23.3 | 23.2 | 23.2 | 23.3 | 23.3 | 23.2 |
Net income per common share, diluted EPS (in dollars per share) | $ 0.75 | $ 0.65 | $ 0.57 | $ 0.24 | $ 0.62 | $ 0.59 | $ 0.52 | $ 0.10 | $ 2.21 | $ 1.83 | $ 1.79 |
Restricted stock units (RSUs) | |||||||||||
Effect of dilutive common share equivalents: [Abstract] | |||||||||||
Incremental common shares attributable to share-based payment arrangements | 0.1 | 0.1 | 0 | ||||||||
Net income per common share, share-based payment arrangements (in dollars per share) | $ (0.01) | $ (0.01) | $ (0.01) | ||||||||
Stock options | |||||||||||
Effect of dilutive common share equivalents: [Abstract] | |||||||||||
Incremental common shares attributable to share-based payment arrangements | 0 | 0.1 | 0.2 | ||||||||
Net income per common share, share-based payment arrangements (in dollars per share) | $ 0 | $ (0.01) | $ (0.01) | ||||||||
Performance shares | |||||||||||
Effect of dilutive common share equivalents: [Abstract] | |||||||||||
Incremental common shares attributable to share-based payment arrangements | 0.1 | ||||||||||
Net income per common share, share-based payment arrangements (in dollars per share) | $ (0.01) |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities | 0 | 0 | 0 |
Stock Incentive Plans - Narrati
Stock Incentive Plans - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015USD ($)shares | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)Participantshares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($)shares | May. 20, 2014shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period | 3 years | |||||||||||
Total intrinsic value of stock options exercised in period | $ 1.8 | $ 5.2 | $ 2.3 | |||||||||
Total aggregate fair value of options vested in period | $ 0 | $ 0.3 | $ 0.2 | |||||||||
Stock options granted | shares | 0 | 0 | 0 | |||||||||
Stock-based compensation cost | $ 2 | $ 2.7 | $ 2.1 | $ 1.9 | $ 1.8 | $ 1.5 | $ 1.5 | $ 1.3 | $ 8.7 | $ 6.1 | $ 4.6 | |
Forfeiture rate since inception of plans | 4.00% | |||||||||||
Number of plan participants since inception of plans | Participant | 90 | |||||||||||
Total unrecognized compensation cost related to non-vested share-based compensation arrangements | $ 4.8 | $ 4.8 | ||||||||||
Expected period to recognize total unrecognized compensation cost related to non-vested share-based compensation arrangements | 1 year 3 months 18 days | |||||||||||
Options | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award expiration period | 7 years | |||||||||||
Restricted stock units (RSUs) | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Total intrinsic value of equity instruments other than options exercised in period | $ 5.8 | 5.3 | 7.6 | |||||||||
Total aggregate fair value of equity instruments other than options vested in period | 5.8 | 5.4 | 8.5 | |||||||||
Performance shares | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Total intrinsic value of equity instruments other than options exercised in period | 2.7 | 1.1 | 2.6 | |||||||||
Total aggregate fair value of equity instruments other than options vested in period | $ 2.7 | $ 1.1 | $ 0.9 | |||||||||
2004 LTIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares cliff vest percentage | 33.00% | |||||||||||
2004 LTIP | Options | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock options granted | shares | 0 | |||||||||||
2005 LTIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares cliff vest percentage | 33.00% | |||||||||||
2007 LTIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares cliff vest percentage | 33.00% | |||||||||||
Remaining period following first vesting commencement date | 2 years | |||||||||||
2007 LTIP | Options | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock options granted | shares | 0 | |||||||||||
2010 LTIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares authorized | shares | 3,131,904 | |||||||||||
Annual award limits to any one participant | shares | 200,000 | |||||||||||
Maximum shares available for grant from previous plans | shares | 912,000 | 912,000 | ||||||||||
2010 LTIP | Options | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock options granted | shares | 0 | |||||||||||
2010 LTIP | Restricted Stock Units and Performance Shares [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period | 3 years |
Stock Incentive Plans - Securit
Stock Incentive Plans - Securities To Be Issued and Remaining Available For Future Issuance (Details) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
2004 LTIP | Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average exercise price of outstanding options and vesting of RSUs (in dollars per share) | $ 0 | $ 9.60 |
2005 LTIP | Restricted stock units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of securities to be issued upon exercise of outstanding options and vesting of RSUs | 6,104 | |
Weighted-average exercise price of outstanding options and vesting of RSUs (in dollars per share) | $ 0.01 | |
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column 1) | 0 | |
2007 LTIP | Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average exercise price of outstanding options and vesting of RSUs (in dollars per share) | $ 9.60 | 10.48 |
2007 LTIP | Stock Options, Restricted Stock Units and Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of securities to be issued upon exercise of outstanding options and vesting of RSUs | 11,415 | |
Weighted-average exercise price of outstanding options and vesting of RSUs (in dollars per share) | $ 8.92 | |
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column 1) | 0 | |
2010 LTIP | Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average exercise price of outstanding options and vesting of RSUs (in dollars per share) | $ 16.39 | $ 16.39 |
2010 LTIP | Stock Options, Restricted Stock Units and Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of securities to be issued upon exercise of outstanding options and vesting of RSUs | 347,423 | |
Weighted-average exercise price of outstanding options and vesting of RSUs (in dollars per share) | $ 0.72 | |
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column 1) | 1,333,236 |
Stock Incentive Plans - Share-B
Stock Incentive Plans - Share-Based Compensation Activity (Details) - $ / shares | 2 Months Ended | 12 Months Ended | ||
Mar. 02, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Granted, number | 0 | 0 | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Total Options and Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Total outstanding, number | 398,084 | 398,084 | ||
Total granted, number | 153,998 | |||
Total vested/exercised, number | (164,143) | |||
Total canceled, number | (22,997) | |||
Total outstanding, number | 364,942 | 398,084 | ||
Total exercisable, number | 32,519 | |||
Restricted stock units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Granted, price | $ 64.94 | $ 37.14 | $ 49.39 | |
Performance shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Granted, price | $ 65.19 | $ 36.80 | ||
2004 LTIP | Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding, number | 2,252 | 2,252 | ||
Granted, number | 0 | |||
Exercised, number | (2,252) | |||
Canceled, number | 0 | |||
Outstanding, number | 0 | 2,252 | ||
Exercisable, number | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Outstanding, price | $ 9.60 | $ 9.60 | ||
Granted, price | 0 | |||
Exercised, price | 9.60 | |||
Canceled, price | 0 | |||
Outstanding, price | 0 | $ 9.60 | ||
Exercisable, price | $ 0 | |||
2005 LTIP | Restricted stock units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Outstanding, number | 6,106 | 6,106 | ||
Granted, number | 0 | |||
Vested, number | 0 | |||
Canceled, number | (2) | |||
Outstanding, number | 6,104 | 6,106 | ||
Exercisable, number | 6,104 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Outstanding, price | $ 0.01 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Outstanding, price | $ 0.01 | 0.01 | ||
Granted, price | 0 | |||
Vested, price | 0 | |||
Canceled, price | 0 | |||
Outstanding, price | 0.01 | $ 0.01 | ||
Exercisable, price | $ 0.01 | |||
2007 LTIP | Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding, number | 41,500 | 41,500 | ||
Granted, number | 0 | |||
Exercised, number | (30,897) | |||
Canceled, number | 0 | |||
Outstanding, number | 10,603 | 41,500 | ||
Exercisable, number | 10,603 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Outstanding, price | $ 10.48 | $ 10.48 | ||
Granted, price | 0 | |||
Exercised, price | 10.79 | |||
Canceled, price | 0 | |||
Outstanding, price | 9.60 | $ 10.48 | ||
Exercisable, price | $ 9.60 | |||
2007 LTIP | Restricted stock units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Outstanding, number | 812 | 812 | ||
Granted, number | 0 | |||
Vested, number | 0 | |||
Canceled, number | 0 | |||
Outstanding, number | 812 | 812 | ||
Exercisable, number | 812 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Outstanding, price | $ 0.01 | $ 0.01 | ||
Granted, price | 0 | |||
Vested, price | 0 | |||
Canceled, price | 0 | |||
Outstanding, price | 0.01 | $ 0.01 | ||
Exercisable, price | $ 0.01 | |||
2010 LTIP | Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding, number | 15,000 | 15,000 | ||
Granted, number | 0 | |||
Exercised, number | 0 | |||
Canceled, number | 0 | |||
Outstanding, number | 15,000 | 15,000 | ||
Exercisable, number | 15,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Outstanding, price | $ 16.39 | $ 16.39 | ||
Granted, price | 0 | |||
Exercised, price | 0 | |||
Canceled, price | 0 | |||
Outstanding, price | 16.39 | $ 16.39 | ||
Exercisable, price | $ 16.39 | |||
2010 LTIP | Restricted stock units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Outstanding, number | 192,618 | 192,618 | ||
Granted, number | 63,735 | |||
Vested, number | (91,064) | |||
Canceled, number | (1,000) | |||
Outstanding, number | 164,289 | 192,618 | ||
Exercisable, number | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Outstanding, price | $ 0.01 | $ 0.01 | ||
Granted, price | 0.01 | |||
Vested, price | 0.01 | |||
Canceled, price | 0.01 | |||
Outstanding, price | 0.01 | $ 0.01 | ||
Exercisable, price | $ 0 | |||
2010 LTIP | Performance shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Outstanding, number | 139,796 | 139,796 | ||
Granted, number | 90,263 | |||
Vested, number | (39,930) | |||
Canceled, number | (21,995) | |||
Outstanding, number | 168,134 | 139,796 | ||
Exercisable, number | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Outstanding, price | $ 0.01 | $ 0.01 | ||
Granted, price | 0.01 | |||
Vested, price | 0.01 | |||
Canceled, price | 0.01 | |||
Outstanding, price | 0.01 | $ 0.01 | ||
Exercisable, price | $ 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Total Options and Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Shares determined to be earned based upon achievement of performance criteria | 71,128 |
Stock Incentive Plans - Secur74
Stock Incentive Plans - Securities Vested and Expected to Vest (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total Options and Non-Options Equity Instruments, Vested, Outstanding, Number | shares | 32,519 |
Total Options and Non-Options Equity Instruments, Expected to Vest, Outstanding, Number | shares | 325,123 |
Total Options and Non-Options Equity Instruments, Vested, Outstanding, Aggregate Intrinsic Value | $ | $ 2,317 |
Total Options and Non-Options Equity Instruments, Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ | $ 11,050 |
Common stock, price per share (in dollars per share) | $ / shares | $ 81.94 |
2005 LTIP | Restricted stock units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Equity Instruments Other than Options, Vested, Outstanding, Number | shares | 6,104 |
Equity Instruments Other than Options, Expected to Vest, Outstanding, Number | shares | 0 |
Equity Instruments Other than Options, Vested, Outstanding, Aggregate Intrinsic Value | $ | $ 500 |
Equity Instruments Other than Options, Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ | $ 0 |
2007 LTIP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options, Vested, Outstanding, Number | shares | 10,603 |
Options, Vested, Outstanding, Weighted-Average Remaining Contractual Term (years) | 1 year |
Options, Vested, Outstanding, Aggregate Intrinsic Value | $ | $ 767 |
2007 LTIP | Restricted stock units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Equity Instruments Other than Options, Vested, Outstanding, Number | shares | 812 |
Equity Instruments Other than Options, Expected to Vest, Outstanding, Number | shares | 0 |
Equity Instruments Other than Options, Vested, Outstanding, Aggregate Intrinsic Value | $ | $ 67 |
Equity Instruments Other than Options, Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ | $ 0 |
2010 LTIP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options, Vested, Outstanding, Number | shares | 15,000 |
Options, Vested, Outstanding, Weighted-Average Remaining Contractual Term (years) | 2 years 9 months 18 days |
Options, Vested, Outstanding, Aggregate Intrinsic Value | $ | $ 983 |
2010 LTIP | Restricted stock units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Equity Instruments Other than Options, Vested, Outstanding, Number | shares | 0 |
Equity Instruments Other than Options, Expected to Vest, Outstanding, Number | shares | 158,670.3162 |
Equity Instruments Other than Options, Vested, Outstanding, Aggregate Intrinsic Value | $ | $ 0 |
Equity Instruments Other than Options, Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ | $ 5,222 |
2010 LTIP | Performance shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Equity Instruments Other than Options, Vested, Outstanding, Number | shares | 0 |
Equity Instruments Other than Options, Expected to Vest, Outstanding, Number | shares | 166,452.66 |
Equity Instruments Other than Options, Vested, Outstanding, Aggregate Intrinsic Value | $ | $ 0 |
Equity Instruments Other than Options, Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ | $ 5,828 |
Stock Incentive Plans - Fair Va
Stock Incentive Plans - Fair Value Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted stock units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average fair value per share of grants - Non-options | $ 64.94 | $ 37.14 | $ 49.39 |
Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average fair value per share of grants - Non-options | $ 65.19 | $ 36.80 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 24, 2016 | Dec. 22, 2014 | Nov. 06, 2014 | Sep. 15, 2014 | Aug. 05, 2014 | Jun. 16, 2014 | May. 02, 2014 | Mar. 24, 2014 | Feb. 07, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Class of Stock [Line Items] | ||||||||||||
Dividends declared (in dollars per share) | $ 0.16 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.55 | $ 0.46 | $ 0.30 | |||||
Dividends paid (in dollars per share) | $ 0.46 | $ 0.30 | $ 0.45 | |||||||||
Cash payment amount | $ 3.7 | $ 3 | $ 3 | $ 3.1 | $ 12.8 | $ 10.7 | $ 7.1 | |||||
Subsequent Event | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Dividends declared (in dollars per share) | $ 0.16 |
Stockholders' Equity - Repurcha
Stockholders' Equity - Repurchase Activities (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
May. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | May. 19, 2015 | May. 18, 2015 | |
Equity [Abstract] | |||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | 50,000,000 | ||
Authorized increase to stock repurchase plan | $ 30,000,000 | ||||
Common stock available for future share repurchases, amount | $ 2,300,000 | $ 11,500,000 | $ 20,700,000 | ||
Number of shares repurchased | 151,183 | 175,917 | |||
Average price per share (in dollars per share) | $ 60.70 | $ 45.49 | |||
Total repurchase costs | $ 9,200,000 | $ 8,000,000 |
Other Comprehensive Income (L78
Other Comprehensive Income (Loss) - Components of OCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity [Abstract] | |||
Net actuarial gain (loss) during year, before tax | $ (2.1) | $ (4.8) | $ 3.6 |
Net actuarial gain (loss) during year, tax effect | 0.9 | 1.7 | (1.5) |
Net actuarial gain (loss) during year, net of tax | (1.2) | (3.1) | 2.1 |
Settlement charge | 1.6 | ||
Settlement charge, tax effect | (0.6) | ||
Settlement charge, net of tax | 1 | ||
Amortization of prior service cost, before tax | 0 | 0 | (0.1) |
Amortization of prior service cost, tax effect | 0 | 0 | 0 |
Amortization of prior service cost, net of tax | 0 | 0 | (0.1) |
Amortization of net actuarial loss, before tax | 0.6 | 0.3 | 0.6 |
Amortization of net actuarial loss, tax effect | (0.2) | (0.1) | (0.2) |
Amortization of net actuarial loss, net of tax | 0.4 | 0.2 | 0.4 |
Net (loss) gain during the year, before tax | 0.1 | (4.5) | 4.1 |
Net (loss) gain during the year, tax effect | 0.1 | 1.6 | (1.7) |
Net (loss) gain during the year, net of tax | 0.2 | (2.9) | 2.4 |
Foreign currency translation adjustment gain (loss), before tax | (4.9) | (3) | (1.5) |
Foreign currency translation adjustment gain (loss), tax effect | 0 | 0 | 0 |
Foreign currency translation adjustment gain (loss), net of tax | (4.9) | (3) | (1.5) |
Other comprehensive (loss) income, before tax | (4.8) | (7.5) | 2.6 |
Other comprehensive (loss) income, tax effect | 0.1 | 1.6 | (1.7) |
Other comprehensive (loss) income, net of tax | $ (4.7) | $ (5.9) | $ 0.9 |
Other Comprehensive Income (L79
Other Comprehensive Income (Loss) - Changes in AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ (11.6) | $ (5.7) | $ (6.6) |
Other comprehensive loss | (4.7) | (5.9) | 0.9 |
Ending balance | (16.3) | (11.6) | (5.7) |
Defined Benefit Plan [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (10.8) | (7.9) | (10.3) |
Other comprehensive loss | 0.2 | (2.9) | 2.4 |
Ending balance | (10.6) | (10.8) | (7.9) |
Foreign Currency Translation [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (0.8) | 2.2 | 3.7 |
Other comprehensive loss | (4.9) | (3) | (1.5) |
Ending balance | $ (5.7) | $ (0.8) | $ 2.2 |
Segment and Geographic Inform80
Segment and Geographic Information - Additional Disclosures (Details) | 12 Months Ended | ||
Dec. 31, 2015AreaSegment | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | 1 | ||
Number of geographic areas | Area | 2 | ||
Number of operating segments | 2 | ||
Net sales | Couche-Tard | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 14.20% | 14.50% | 14.70% |
Segment and Geographic Inform81
Segment and Geographic Information - Geographic Reporting Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 2,815.1 | $ 2,991.6 | $ 2,810.4 | $ 2,452.3 | $ 2,608.6 | $ 2,747.4 | $ 2,623.2 | $ 2,300.9 | $ 11,069.4 | $ 10,280.1 | $ 9,767.6 |
Income (loss) before income taxes | 28.2 | 24.2 | 21.4 | 9.1 | 22.5 | 20 | 19.9 | 4 | 82.9 | 66.4 | 66 |
Interest expense | 0.6 | 0.6 | 0.7 | 0.6 | 0.6 | 0.5 | 0.6 | 0.7 | 2.5 | 2.4 | 2.7 |
Depreciation and amortization | 9.6 | 9.9 | 9.7 | 8.7 | 8.6 | 8.3 | 7.9 | 7.2 | 37.9 | 32 | 27.2 |
Capital expenditures | $ 5.6 | $ 10.3 | $ 11.7 | $ 2.7 | $ 29.8 | $ 9.3 | $ 9.8 | $ 5 | 30.3 | 53.9 | 18 |
Reportable Geographical Components | United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 9,829.7 | 8,989 | 8,618.3 | ||||||||
Income (loss) before income taxes | 79.4 | 70.8 | 57.3 | ||||||||
Interest expense | 35 | 32 | 30.2 | ||||||||
Depreciation and amortization | 29.3 | 24.9 | 20.2 | ||||||||
Capital expenditures | 28.6 | 53.3 | 15.7 | ||||||||
Reportable Geographical Components | Canada | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,203.5 | 1,250.9 | 1,114.3 | ||||||||
Income (loss) before income taxes | 1.7 | 3.2 | 0.9 | ||||||||
Interest expense | 0.7 | 0.7 | 0.6 | ||||||||
Depreciation and amortization | 2.4 | 2.8 | 2.7 | ||||||||
Capital expenditures | 1.7 | 0.6 | 2.3 | ||||||||
Corporate Eliminations and Adjustments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 36.2 | 40.2 | 35 | ||||||||
Income (loss) before income taxes | 1.8 | (7.6) | 7.8 | ||||||||
Interest expense | (33.2) | (30.3) | (28.1) | ||||||||
Depreciation and amortization | $ 6.2 | $ 4.3 | $ 4.3 |
Segment and Geographic Inform82
Segment and Geographic Information - Identifiable Assets (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Segment Reporting Information [Line Items] | |||
Identifiable assets | $ 1,077.3 | $ 1,029.6 | $ 956.8 |
United States | |||
Segment Reporting Information [Line Items] | |||
Identifiable assets | 981.4 | 913.8 | 844.8 |
Canada | |||
Segment Reporting Information [Line Items] | |||
Identifiable assets | $ 95.9 | $ 115.8 | $ 112 |
Segment and Geographic Inform83
Segment and Geographic Information - Net Sales By Product Categories (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 2,815.1 | $ 2,991.6 | $ 2,810.4 | $ 2,452.3 | $ 2,608.6 | $ 2,747.4 | $ 2,623.2 | $ 2,300.9 | $ 11,069.4 | $ 10,280.1 | $ 9,767.6 |
Total food/non-food products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 880.6 | 942 | 911.3 | 807 | 844 | 889.1 | 852.4 | 752.6 | 3,540.9 | 3,338.1 | 3,125.6 |
Cigarettes | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 1,934.5 | $ 2,049.6 | $ 1,899.1 | $ 1,645.3 | $ 1,764.6 | $ 1,858.3 | $ 1,770.8 | $ 1,548.3 | 7,528.5 | 6,942 | 6,642 |
Food | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,586.1 | 1,462 | 1,342.3 | ||||||||
Candy | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 557 | 534.3 | 513.2 | ||||||||
Other tobacco products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 870.3 | 827.5 | 787.8 | ||||||||
Health, beauty & general | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 368.8 | 361 | 341.3 | ||||||||
Beverages | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 156.6 | 151.8 | 139.1 | ||||||||
Beverages | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 2.1 | 1.5 | $ 1.9 | ||||||||
Previously Reported | Candy | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 527.2 | ||||||||||
Previously Reported | Health, beauty & general | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 327.3 |
Quarterly Financial Data (Una84
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information [Line Items] | |||||||||||
Net sales | $ 2,815,100,000 | $ 2,991,600,000 | $ 2,810,400,000 | $ 2,452,300,000 | $ 2,608,600,000 | $ 2,747,400,000 | $ 2,623,200,000 | $ 2,300,900,000 | $ 11,069,400,000 | $ 10,280,100,000 | $ 9,767,600,000 |
Cost of goods sold | 2,645,000,000 | 2,820,000,000 | 2,651,500,000 | 2,315,000,000 | 2,454,000,000 | 2,596,000,000 | 2,479,900,000 | 2,176,500,000 | 10,431,500,000 | 9,706,400,000 | 9,230,500,000 |
Gross profit | 170,100,000 | 171,600,000 | 158,900,000 | 137,300,000 | 154,600,000 | 151,400,000 | 143,300,000 | 124,400,000 | 637,900,000 | 573,700,000 | 537,100,000 |
Warehousing and distribution expenses | 91,700,000 | 92,800,000 | 88,600,000 | 79,500,000 | 81,500,000 | 83,500,000 | 78,100,000 | 75,300,000 | 352,600,000 | 318,400,000 | 297,100,000 |
Selling, general and administrative expenses | 48,400,000 | 52,800,000 | 47,500,000 | 47,300,000 | 49,500,000 | 47,000,000 | 44,000,000 | 43,900,000 | 196,000,000 | 184,400,000 | 168,300,000 |
Amortization of intangible assets | 800,000 | 600,000 | 600,000 | 600,000 | 600,000 | 700,000 | 700,000 | 600,000 | 2,600,000 | 2,600,000 | 2,700,000 |
Total operating expenses | 140,900,000 | 146,200,000 | 136,700,000 | 127,400,000 | 131,600,000 | 131,200,000 | 122,800,000 | 119,800,000 | 551,200,000 | 505,400,000 | 468,100,000 |
Income from operations | 29,200,000 | 25,400,000 | 22,200,000 | 9,900,000 | 23,000,000 | 20,200,000 | 20,500,000 | 4,600,000 | 86,700,000 | 68,300,000 | 69,000,000 |
Interest expense | (600,000) | (600,000) | (700,000) | (600,000) | (600,000) | (500,000) | (600,000) | (700,000) | (2,500,000) | (2,400,000) | (2,700,000) |
Interest income | 100,000 | 100,000 | 100,000 | 200,000 | 200,000 | 100,000 | 200,000 | 100,000 | 500,000 | 600,000 | 500,000 |
Foreign currency transaction losses, net | (500,000) | (700,000) | (200,000) | (400,000) | (100,000) | 200,000 | (200,000) | 0 | (1,800,000) | (100,000) | (800,000) |
Income before income taxes | 28,200,000 | 24,200,000 | 21,400,000 | 9,100,000 | 22,500,000 | 20,000,000 | 19,900,000 | 4,000,000 | 82,900,000 | 66,400,000 | 66,000,000 |
Income tax provision | (10,500,000) | (9,100,000) | (8,200,000) | (3,600,000) | (7,900,000) | (6,300,000) | (7,900,000) | (1,600,000) | (31,400,000) | (23,700,000) | (24,400,000) |
Net income | $ 17,700,000 | $ 15,100,000 | $ 13,200,000 | $ 5,500,000 | $ 14,600,000 | $ 13,700,000 | $ 12,000,000 | $ 2,400,000 | $ 51,500,000 | $ 42,700,000 | $ 41,600,000 |
Basic net income per common share (in dollars per share) | $ 0.77 | $ 0.65 | $ 0.57 | $ 0.24 | $ 0.63 | $ 0.59 | $ 0.52 | $ 0.11 | $ 2.23 | $ 1.85 | $ 1.81 |
Diluted net income per common share (in dollars per share) | $ 0.75 | $ 0.65 | $ 0.57 | $ 0.24 | $ 0.62 | $ 0.59 | $ 0.52 | $ 0.10 | $ 2.21 | $ 1.83 | $ 1.79 |
Basic weighted-average shares (in shares) | 23.2 | 23.1 | 23.1 | 23.2 | 23.1 | 23.1 | 23.1 | 23 | 23.1 | 23.1 | 23 |
Diluted weighted-average shares (in shares) | 23.4 | 23.3 | 23.3 | 23.3 | 23.4 | 23.3 | 23.2 | 23.2 | 23.3 | 23.3 | 23.2 |
Excise taxes | $ 566,700,000 | $ 607,100,000 | $ 554,200,000 | $ 483,700,000 | $ 530,300,000 | $ 567,600,000 | $ 539,900,000 | $ 472,500,000 | $ 2,200,000,000 | $ 2,100,000,000 | $ 2,100,000,000 |
LIFO expense | (7,300,000) | 3,300,000 | 3,500,000 | 2,400,000 | 2,700,000 | 6,500,000 | 4,300,000 | 2,800,000 | 1,900,000 | 16,300,000 | 8,700,000 |
Depreciation and amortization | 9,600,000 | 9,900,000 | 9,700,000 | 8,700,000 | 8,600,000 | 8,300,000 | 7,900,000 | 7,200,000 | 37,900,000 | 32,000,000 | 27,200,000 |
Stock-based compensation | 2,000,000 | 2,700,000 | 2,100,000 | 1,900,000 | 1,800,000 | 1,500,000 | 1,500,000 | 1,300,000 | 8,700,000 | 6,100,000 | 4,600,000 |
Capital expenditures | 5,600,000 | 10,300,000 | 11,700,000 | 2,700,000 | 29,800,000 | 9,300,000 | 9,800,000 | 5,000,000 | 30,300,000 | 53,900,000 | 18,000,000 |
OTP tax refunds, net of tax assessments | 6,200,000 | 2,300,000 | 800,000 | 900,000 | |||||||
Acquisition and transition costs | 1,800,000 | 1,400,000 | |||||||||
Acquisition and integration expenses | 300,000 | 400,000 | 800,000 | 300,000 | 700,000 | 600,000 | 100,000 | 0 | |||
Pension settlement | 700,000 | 900,000 | 1,600,000 | ||||||||
Cigarettes | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Net sales | 1,934,500,000 | 2,049,600,000 | 1,899,100,000 | 1,645,300,000 | 1,764,600,000 | 1,858,300,000 | 1,770,800,000 | 1,548,300,000 | 7,528,500,000 | 6,942,000,000 | 6,642,000,000 |
Inventory holding gains | 4,700,000 | 600,000 | 3,800,000 | 1,000,000 | 4,200,000 | 200,000 | 3,300,000 | 500,000 | |||
Inventory tax stamp holding gain | 700,000 | 8,300,000 | 0 | 0 | |||||||
Food/non-food | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Net sales | $ 880,600,000 | $ 942,000,000 | $ 911,300,000 | $ 807,000,000 | 844,000,000 | 889,100,000 | 852,400,000 | 752,600,000 | 3,540,900,000 | 3,338,100,000 | 3,125,600,000 |
Candy | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Net sales | $ 557,000,000 | $ 534,300,000 | $ 513,200,000 | ||||||||
Inventory holding gains | $ 800,000 | $ 5,200,000 | $ 0 | $ 0 |
Valuation and Qualifying Acco85
Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 11.4 | $ 10.2 | $ 11.7 |
Charged to Costs and Expenses | 19.9 | 18.6 | 13.8 |
Deductions | (19.8) | (17.3) | (15.3) |
Charged to Other Accounts | 0.1 | (0.1) | 0 |
Balance at End of Period | 11.6 | 11.4 | 10.2 |
Allowances for Trade Receivables | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 10.8 | 9.4 | 10.9 |
Charged to Costs and Expenses | 1.3 | 2.2 | 1.1 |
Deductions | (1.3) | (0.7) | (2.6) |
Charged to Other Accounts | 0.1 | (0.1) | 0 |
Balance at End of Period | 10.9 | 10.8 | 9.4 |
Allowances for Inventory Reserves | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 0.6 | 0.8 | 0.8 |
Charged to Costs and Expenses | 18.6 | 16.4 | 12.7 |
Deductions | (18.5) | (16.6) | (12.7) |
Charged to Other Accounts | 0 | 0 | 0 |
Balance at End of Period | $ 0.7 | $ 0.6 | $ 0.8 |