Core-Mark Hldg (CORE) 10-Q 7 Nov 19 2019 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2019	Nov. 01, 2019
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2019
Document Transition Report	false
Entity File Number	000-51515
Entity Registrant Name	Core-Mark Holding Company, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-1489747
Entity Address, Address Line One	1500 Solana Boulevard, Suite 3400
Entity Address, Postal Zip Code	76262
Entity Address, City or Town	Westlake,
Entity Address, State or Province	TX
City Area Code	940
Local Phone Number	293-8600
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	CORE
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		45,567,274
Entity Central Index Key	0001318084
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 26	$ 27.3
Accounts receivable, net of allowance for doubtful accounts of $13.0 and $8.3 as of September 30, 2019 and December 31, 2018, respectively	428.7	403.5
Other receivables, net	111.2	89.4
Inventories, net (Note 3)	870	689
Deposits and prepayments	95.7	78.8
Total current assets	1,531.6	1,288
Property and equipment, net	239.6	229
Operating lease right-of-use assets (Note 4)	208.5
Goodwill	72.8	72.8
Other intangible assets, net	46.7	51.1
Other non-current assets, net	30.1	25.2
Total assets	2,129.3	1,666.1
Current liabilities:
Accounts payable	274.4	199.8
Book overdrafts	41.7	49.4
Cigarette and tobacco taxes payable	238	297.8
Operating lease liabilities (Note 4)	40.3
Accrued liabilities	157.8	134
Total current liabilities	752.2	681
Long-term debt (Note 5)	535.9	346.2
Deferred income taxes	27.8	27.1
Long-term operating lease liabilities (Note 4)	181.2
Other long-term liabilities	5.8	14.6
Claims liabilities	34.8	30.2
Total liabilities	1,537.7	1,099.1
Contingencies (Note 6)
Stockholders’ equity:
Common stock, $0.01 par value (150,000,000 shares authorized; 52,700,663 and 52,524,853 shares issued; 45,645,090 and 45,703,705 shares outstanding at September 30, 2019 and December 31, 2018, respectively)	0.5	0.5
Additional paid-in capital	288.3	283.3
Treasury stock at cost (7,055,573 and 6,821,148 shares of common stock at September 30, 2019 and December 31, 2018, respectively)	(98.7)	(90.6)
Retained earnings	407.8	381.6
Accumulated other comprehensive loss	(6.3)	(7.8)
Total stockholders’ equity	591.6	567
Total liabilities and stockholders’ equity	$ 2,129.3	$ 1,666.1

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Allowance for doubtful accounts	$ 13	$ 8.3
Stockholders' equity:
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, shares issued (in shares)	52,700,663	52,524,853
Common stock, shares outstanding (in shares)	45,645,090	45,703,705
Treasury stock, shares (in shares)	7,055,573	6,821,148

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Statement [Abstract]
Net sales	$ 4,422.6	$ 4,273.2	$ 12,515.7	$ 12,305.6
Cost of goods sold	4,176	4,039.4	11,822	11,655.1
Gross profit	246.6	233.8	693.7	650.5
Warehousing and distribution expenses	148.6	137.6	426	404.2
Selling, general and administrative expenses	61.8	58.8	192.3	183.9
Amortization of intangible assets	2.3	2.5	7.7	7.6
Total operating expenses	212.7	198.9	626	595.7
Income from operations	33.9	34.9	67.7	54.8
Interest expense, net	(4.2)	(3.4)	(10.8)	(10.6)
Foreign currency transaction gains (losses), net	0.9	(0.4)	(0.3)	0.5
Income before income taxes	30.6	31.1	56.6	44.7
Provision for income taxes	(8.1)	(7.4)	(15.1)	(11.3)
Net income	$ 22.5	$ 23.7	$ 41.5	$ 33.4
Basic earnings per share (in dollars per share) (Note 7)	$ 0.49	$ 0.52	$ 0.91	$ 0.72
Diluted earnings per share (in dollars per share) (Note 7)	$ 0.49	$ 0.51	$ 0.90	$ 0.72
Basic weighted-average shares (in shares) (Note 7)	45.8	45.9	45.8	46.1
Diluted weighted-average shares (in shares) (Note 7)	46.1	46.2	46.1	46.2

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 22.5	$ 23.7	$ 41.5	$ 33.4
Foreign currency translation (losses) gains, net	(1.5)	1.2	1.5	(1.9)
Other comprehensive (loss) income, net of tax	(1.5)	1.2	1.5	(1.9)
Comprehensive income	$ 21	$ 24.9	$ 43	$ 31.5

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net income	$ 41.5	$ 33.4
Adjustments to reconcile net income to net cash provided by operating activities:
LIFO and inventory provisions	21.4	20.5
Amortization of debt issuance costs	0.6	0.6
Stock-based compensation expense	7.2	6.4
Bad debt expense, net	5.4	1.8
Loss on disposals	0.1	0.6
Depreciation and amortization	45.8	44.5
Foreign currency losses (gains), net	0.3	(0.5)
Deferred income taxes	0.5	2
Changes in operating assets and liabilities:
Accounts receivable, net	(29.9)	9.9
Other receivables, net	(21.6)	(2.1)
Inventories, net	(199.5)	14.1
Deposits, prepayments and other non-current assets	(22.9)	53.9
Accounts payable	74.2	49.2
Cigarette and tobacco taxes payable	(61.3)	(71.9)
Claims, accrued and other long-term liabilities	27.1	29.7
Net cash (used in) provided by operating activities	(111.1)	192.1
Cash flows from investing activities:
Acquisition of business	(2.5)	(2.5)
Additions to property and equipment, net	(15.3)	(14.9)
Capitalization of software and related development costs	(3.3)	(1.6)
Proceeds from sale of property and equipment, net	0.2	0.1
Net cash used in investing activities	(20.9)	(18.9)
Cash flows from financing activities:
Borrowings under revolving credit facility	1,334.6	1,276.1
Repayments under revolving credit facility	(1,166.6)	(1,414.3)
Payments on finance leases	(3.6)	(2)
Dividends paid	(15.2)	(13.9)
Repurchases of common stock	(8.1)	(12.5)
Tax withholdings related to net share settlements of restricted stock units	(2.2)	(1.6)
Decrease in book overdrafts	(7.7)	(9.5)
Net cash provided by (used in) financing activities	131.2	(177.7)
Effects of changes in foreign exchange rates	(0.5)	0.7
Change in cash and cash equivalents	(1.3)	(3.8)
Cash and cash equivalents, beginning of period	27.3	41.6
Cash and cash equivalents, end of period	26	37.8
Cash (paid) received during the period for:
Income taxes, net	(13.6)	9.7
Interest	(9.1)	(9.2)
Unpaid property and equipment purchases included in accrued liabilities	0	0.6
Non-cash transactions between other non-current assets and other long-term liabilities	$ 4.7	$ 0

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions	Total	Common Stock Issued	Additional Paid-in Capital	Treasury Stock	Retained Earnings	Accumulated Other Comprehensive (Loss) Income
Beginning balance at Dec. 31, 2017	$ 555.2	$ 0.5	$ 276.8	$ (75.1)	$ 355.1	$ (2.1)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued, net of shares withheld for employee taxes			(1.8)
Stock-based compensation expense			6.4
Repurchase of common stock				(12.5)
Net income	33.4				33.4
Dividends declared					(14)
Other comprehensive (loss) gain	(1.9)					(1.9)
Ending balance at Sep. 30, 2018	$ 564.8	$ 0.5	281.4	$ (87.6)	374.5	(4)
Beginning balance (in shares) at Dec. 31, 2017		52.4		6.2
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of stock based instruments, net of shares withheld for employee taxes (in shares)		0.1
Repurchase of common stock (in shares)				(0.5)
Ending balance (in shares) at Sep. 30, 2018	45.8	52.5		6.7
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared (in dollars per share)	$ 0.30
Beginning balance at Jun. 30, 2018	$ 547.9	$ 0.5	279.6	$ (82.6)	355.6	(5.2)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued, net of shares withheld for employee taxes			(0.2)
Stock-based compensation expense			2
Repurchase of common stock				(5)
Net income	23.7				23.7
Dividends declared					(4.8)
Other comprehensive (loss) gain	1.2					1.2
Ending balance at Sep. 30, 2018	$ 564.8	$ 0.5	281.4	$ (87.6)	374.5	(4)
Beginning balance (in shares) at Jun. 30, 2018		52.5		6.5
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of stock based instruments, net of shares withheld for employee taxes (in shares)		0
Repurchase of common stock (in shares)				(0.2)
Ending balance (in shares) at Sep. 30, 2018	45.8	52.5		6.7
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared (in dollars per share)	$ 0.10
Beginning balance at Dec. 31, 2018	$ 567	$ 0.5	283.3	$ (90.6)	381.6	(7.8)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued, net of shares withheld for employee taxes			(2.2)
Stock-based compensation expense			7.2
Repurchase of common stock				(8.1)
Net income	41.5				41.5
Dividends declared					(15.3)
Other comprehensive (loss) gain	1.5					1.5
Ending balance at Sep. 30, 2019	$ 591.6		288.3	$ (98.7)	407.8	(6.3)
Beginning balance (in shares) at Dec. 31, 2018		52.5		6.8
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of stock based instruments, net of shares withheld for employee taxes (in shares)		0.2
Repurchase of common stock (in shares)				(0.3)
Ending balance (in shares) at Sep. 30, 2019	45.6	52.7		7.1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared (in dollars per share)	$ 0.33
Beginning balance at Jun. 30, 2019	$ 580.8	$ 0.5	285.3	$ (90.6)	390.4	(4.8)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued, net of shares withheld for employee taxes			(0.1)
Stock-based compensation expense			3.1
Repurchase of common stock				(8.1)
Net income	22.5				22.5
Dividends declared					(5.1)
Other comprehensive (loss) gain	(1.5)					(1.5)
Ending balance at Sep. 30, 2019	$ 591.6		$ 288.3	$ (98.7)	$ 407.8	$ (6.3)
Beginning balance (in shares) at Jun. 30, 2019		52.7		6.8
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of stock based instruments, net of shares withheld for employee taxes (in shares)		0
Repurchase of common stock (in shares)				(0.3)
Ending balance (in shares) at Sep. 30, 2019	45.6	52.7		7.1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared (in dollars per share)	$ 0.11

Summary of Company Information

Summary of Company Information and Basis of Presentation	9 Months Ended
	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Company Information and Basis of Presentation	Summary of Company Information and Basis of Presentation Business Core-Mark Holding Company, Inc., and its subsidiaries (collectively referred to herein as “the Company” or “Core-Mark”), are one of the largest marketers of fresh, food 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 43,000 customer locations in the United States (“U.S.”) and Canada. The Company’s customers include traditional convenience stores, drug stores, mass merchants, 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, alternative nicotine 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 thirty-two distribution centers in the U.S. and Canada (excluding two distribution facilities it operates as a third-party logistics provider). Twenty-seven distribution centers are located in the U.S. and five are located in Canada. Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated balance sheet as of September 30, 2019 , the unaudited condensed consolidated statements of operations and comprehensive income, the unaudited condensed consolidated statements of stockholders’ equity for the three and nine months ended September 30, 2019 and 2018 , and the unaudited condensed consolidated statements of cash flows for the nine months ended September 30, 2019 and 2018 , have been prepared in accordance with the requirements of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting. Accordingly, certain footnotes and other financial information that are normally required by generally accepted accounting principles in the U.S. (“GAAP”) have been condensed or omitted. The condensed consolidated balance sheet as of December 31, 2018 has been derived from the Company’s audited financial statements, which are included in its 2018 Annual Report on Form 10-K, filed with the SEC on March 1, 2019 . 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. The unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements in its Annual Report on Form 10-K, for the year ended December 31, 2018 . The unaudited condensed consolidated interim financial statements include all adjustments necessary for the fair presentation of the Company’s consolidated results of operations, financial position, comprehensive income, changes in stockholders’ equity and cash flows. Results for the interim periods are not necessarily indicative of results to be expected for the full year or any other future periods. Subsequent to the issuance of the Company’s interim condensed consolidated financial statements as of and for the three and nine months ended September 30, 2018 , management determined that the amount of foreign currency translation loss disclosed for the nine months ended September 30, 2018 was overstated by $0.9 million in the condensed consolidated statement of comprehensive income, which also impacted retained earnings and accumulated other comprehensive loss by the same amount as of September 30, 2018 , as currently presented in the condensed consolidated statement of stockholders’ equity. The impacted financial statement line items have been adjusted in the prior periods presented to correct for this overstatement.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Adoption of Other Accounting Pronouncements On February 25, 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which supersedes the lease accounting requirements in ASC 840. The most significant among the changes in ASU 2016-02 is the recognition of right-of-use (“ROU”) assets and corresponding lease liabilities for leases classified as operating leases. The accounting for finance leases, which were classified as capital leases under historical GAAP, remains substantially unchanged. The lease liabilities are equal to the present value of the remaining lease payments while the ROU asset is determined based on the amount of the lease liability, plus initial direct costs incurred less lease incentives. The Company elected the optional transition method to apply ASU 2016-02 prospectively at adoption effective January 1, 2019, which resulted in recognition of additional lease assets of approximately $232.1 million , lease liabilities of $244.9 million , and a decrease of deferred rent recorded under ASC 840 of $12.8 million . Comparative periods presented in the Consolidated Financial Statements prior to January 1, 2019 continue to be presented under ASC 840. The Company has implemented internal controls and new lease software to assist with future reporting. ASU 2016-02 does not have an impact on the Company’s debt-covenant compliance under its current revolving credit facility. In accordance with an accounting policy election under ASU 2016-02, the Company does not recognize assets or liabilities for leases with an initial term of twelve months or less; these short-term lease payments are recognized in the consolidated statements of operations on a straight-line basis over the lease term. The Company elected the package of practical expedients within ASU 2016-02 that allows an entity to not reassess, prior to the effective date, (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases, or (iii) initial direct costs for any existing leases. The Company also elected the practical expedient to combine lease and non-lease components for all asset classes. Recent Accounting Standards or Updates Not Yet Effective On January 26, 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). The new guidance simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. ASU 2017-04 requires goodwill impairment to be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of its goodwill. ASU 2017-04 requires prospective application and is effective for annual periods beginning after December 15, 2019. ASU 2017-04 will require the Company to amend its methodology for determining any goodwill impairment calculations beginning in 2020. Concentration of Credit Risks 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. 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 receivables are typically not collateralized, but the Company may require prepayments or other guarantees whenever deemed necessary. Murphy U.S.A., the Company’s largest customer, accounted for approximately 13% of the Company’s net sales for the three and nine months ended September 30, 2019 and approximately 12% of the Company’s net sales for the three and nine months ended September 30, 2018 . No other customers individually accounted for more than 10% of sales for these periods. No single customer accounted for 10% or more of the Company’s accounts receivables as of September 30, 2019 or December 31, 2018 .

Inventories, net

Inventories, net	9 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
Inventories, net	Inventories, net Inventories consist of the following (in millions): September 30, December 31, Inventories at FIFO, net of reserves $ 1,068.8 $ 866.1 Less: LIFO reserve (198.8 ) (177.1 ) Total inventories, net of reserves $ 870.0 $ 689.0 Cost of goods sold reflects the application of the last-in, first-out (“LIFO”) method of valuing inventories in the U.S. based upon estimated annual producer price indexes. Inventories in Canada are valued on a first-in, first-out (“FIFO”) basis, as LIFO is not a permitted inventory valuation method in Canada. 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 $198.8 million and $177.1 million higher as of September 30, 2019 and December 31, 2018 , respectively. The Company recorded LIFO expense of $7.3 million and $7.2 million for the three months ended September 30, 2019 and 2018 , respectively, and $21.7 million and $20.0 million for the nine months ended September 30, 2019 and 2018, respectively.

Leases

Leases	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Leases	Leases The Company leases warehouse facilities, trucks, office equipment and certain sales offices. Certain of the Company’s real estate leases include one or more options to renew the applicable lease agreement, with the exercise of renewal options at the Company’s sole discretion; the Company generally includes only one real estate lease extension option in the recognition of ROU assets and lease liabilities. Certain of the Company’s vehicle leases have residual value guarantees. Leases with an initial term of twelve months or less are not recorded on the balance sheet; the Company recognizes lease expenses for such leases on a straight-line basis over the lease term. The majority of the Company’s lease payments are fixed and are incorporated into the ROU lease assets and liabilities. However, certain vehicle leases have variable payments, such as per-mile charges, which are expensed as incurred. The Company combines lease components and non-lease components for all asset classes for purposes of recognizing lease assets and liabilities. Leases consist of the following (in millions): Assets Classification September 30, Operating Operating lease ROU assets $ 208.5 Finance Property and equipment, net 49.1 Total leases $ 257.6 Liabilities Current: Operating Operating lease liabilities $ 40.3 Finance Accrued liabilities 6.9 Non-current: Operating Long-term operating lease liabilities 181.2 Finance Long-term debt 47.9 Total lease liabilities $ 276.3 The components of lease costs were as follows (in millions): Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Operating lease cost $ 13.0 $ 38.9 Finance lease cost: Amortization of leased assets 1.6 3.9 Interest on lease liabilities 0.6 1.5 Short-term lease cost 0.4 1.2 Variable lease cost 4.9 16.3 Net lease cost $ 20.5 $ 61.8 Maturity of lease liabilities as of September 30, 2019 , were as follows (in millions): Operating leases Finance leases Total 2019 $ 12.8 $ 2.4 $ 15.2 2020 48.7 9.2 57.9 2021 41.8 8.6 50.4 2022 33.5 8.5 42.0 2023 26.2 8.2 34.4 2024 and thereafter 103.4 29.5 132.9 Total lease payments 266.4 66.4 332.8 Less: interest (44.9 ) (11.6 ) (56.5 ) Present value of lease liabilities $ 221.5 $ 54.8 $ 276.3 Weighted-average remaining lease term and weighted-average discount rate regarding the Company’s leases were as follows: Lease term September 30, Weighted-average remaining lease term (years): Operating 7.3 Finance 8.0 Discount rate Weighted-average discount rate: Operating 4.8 % Finance 4.8 % Other information regarding the Company’s leases were as follows (in millions): Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ 38.5 Operating cash flows used by finance leases $ 1.5 Financing cash flows used by finance leases $ 3.6 Lease liabilities arising from obtaining new ROU assets: Operating leases $ 7.0 Finance leases $ 29.3 As of September 30, 2019 , the Company had approximately $22 million of leases, primarily for trailers, that had not yet commenced. Future minimum operating lease payments as of December 31, 2018, as reported in the 2018 Form 10-K under ASC 840, were as follows (in millions): Operating Leases Year ending December 31, 2019 $ 61.6 2020 56.8 2021 48.4 2022 38.3 2023 29.8 2024 and thereafter 108.6 Total $ 343.5 Future minimum capital lease payments as of December 31, 2018, as reported in the 2018 Form 10-K under ASC 840, were as follows (in millions): Capital Leases Year ending December 31, 2019 $ 4.7 2020 4.3 2021 3.5 2022 3.4 2023 3.2 2024 and thereafter 18.9 Total 38.0 Less: interest (8.6 ) Present value of future minimum lease payments 29.4 Less: current portion (3.2 ) Non-current portion $ 26.2
Leases	Leases The Company leases warehouse facilities, trucks, office equipment and certain sales offices. Certain of the Company’s real estate leases include one or more options to renew the applicable lease agreement, with the exercise of renewal options at the Company’s sole discretion; the Company generally includes only one real estate lease extension option in the recognition of ROU assets and lease liabilities. Certain of the Company’s vehicle leases have residual value guarantees. Leases with an initial term of twelve months or less are not recorded on the balance sheet; the Company recognizes lease expenses for such leases on a straight-line basis over the lease term. The majority of the Company’s lease payments are fixed and are incorporated into the ROU lease assets and liabilities. However, certain vehicle leases have variable payments, such as per-mile charges, which are expensed as incurred. The Company combines lease components and non-lease components for all asset classes for purposes of recognizing lease assets and liabilities. Leases consist of the following (in millions): Assets Classification September 30, Operating Operating lease ROU assets $ 208.5 Finance Property and equipment, net 49.1 Total leases $ 257.6 Liabilities Current: Operating Operating lease liabilities $ 40.3 Finance Accrued liabilities 6.9 Non-current: Operating Long-term operating lease liabilities 181.2 Finance Long-term debt 47.9 Total lease liabilities $ 276.3 The components of lease costs were as follows (in millions): Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Operating lease cost $ 13.0 $ 38.9 Finance lease cost: Amortization of leased assets 1.6 3.9 Interest on lease liabilities 0.6 1.5 Short-term lease cost 0.4 1.2 Variable lease cost 4.9 16.3 Net lease cost $ 20.5 $ 61.8 Maturity of lease liabilities as of September 30, 2019 , were as follows (in millions): Operating leases Finance leases Total 2019 $ 12.8 $ 2.4 $ 15.2 2020 48.7 9.2 57.9 2021 41.8 8.6 50.4 2022 33.5 8.5 42.0 2023 26.2 8.2 34.4 2024 and thereafter 103.4 29.5 132.9 Total lease payments 266.4 66.4 332.8 Less: interest (44.9 ) (11.6 ) (56.5 ) Present value of lease liabilities $ 221.5 $ 54.8 $ 276.3 Weighted-average remaining lease term and weighted-average discount rate regarding the Company’s leases were as follows: Lease term September 30, Weighted-average remaining lease term (years): Operating 7.3 Finance 8.0 Discount rate Weighted-average discount rate: Operating 4.8 % Finance 4.8 % Other information regarding the Company’s leases were as follows (in millions): Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ 38.5 Operating cash flows used by finance leases $ 1.5 Financing cash flows used by finance leases $ 3.6 Lease liabilities arising from obtaining new ROU assets: Operating leases $ 7.0 Finance leases $ 29.3 As of September 30, 2019 , the Company had approximately $22 million of leases, primarily for trailers, that had not yet commenced. Future minimum operating lease payments as of December 31, 2018, as reported in the 2018 Form 10-K under ASC 840, were as follows (in millions): Operating Leases Year ending December 31, 2019 $ 61.6 2020 56.8 2021 48.4 2022 38.3 2023 29.8 2024 and thereafter 108.6 Total $ 343.5 Future minimum capital lease payments as of December 31, 2018, as reported in the 2018 Form 10-K under ASC 840, were as follows (in millions): Capital Leases Year ending December 31, 2019 $ 4.7 2020 4.3 2021 3.5 2022 3.4 2023 3.2 2024 and thereafter 18.9 Total 38.0 Less: interest (8.6 ) Present value of future minimum lease payments 29.4 Less: current portion (3.2 ) Non-current portion $ 26.2

Long-term Debt

Long-term Debt	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Long-term Debt	Long-term Debt Long-term debt consists of the following (in millions): September 30, December 31, Amounts borrowed (Credit Facility) $ 488.0 $ 320.0 Obligations under finance leases 47.9 26.2 Total long-term debt $ 535.9 $ 346.2 The Company has a revolving credit facility (the “Credit Facility”) with a capacity of $750.0 million as of September 30, 2019 , limited by a borrowing base consisting of eligible accounts receivables and inventories. The Credit Facility expires in March 2022 and has an expansion feature which permits an increase of $200.0 million , subject to borrowing base requirements. 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 Offered Rate (“LIBOR”) or Canadian Dollar Offered Rate (“CDOR”) based loans prepaid prior to the end of an interest period). Amounts related to the Credit Facility are as follows (in millions, except interest rate data): September 30, December 31, Amounts borrowed, net $ 488.0 $ 320.0 Outstanding letters of credit 16.7 16.7 Amounts available to borrow (1) 231.9 328.9 Unamortized debt issuance costs 1.9 2.5 ___________________________________________ (1) Subject to borrowing base limitations, and excluding expansion feature of $200.0 million . Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Average borrowings $ 371.1 $ 326.9 $ 295.0 $ 367.9 Range of borrowings 252.8 - 489.0 255.7 - 445.0 141.7 - 489.0 232.0 - 575.0 Unused Credit Facility and letter of credit participation fees (1) 0.3 0.3 0.9 0.8 Amortization of debt issuance costs (1) 0.2 0.2 0.6 0.6 Weighted-average interest rate (2) 3.5 % 3.3 % 3.6 % 3.0 % ___________________________________________ (1) Included in interest expense, net. (2) Calculated based on the daily cost of borrowing, reflecting a blend of prime and LIBOR rates.

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies Litigation 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 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, financial condition or liquidity.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2019
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): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Earnings Net income $ 22.5 $ 23.7 $ 41.5 $ 33.4 Shares Weighted-average common shares outstanding (basic shares) 45.8 45.9 45.8 46.1 Adjustment for assumed dilution: Restricted stock units 0.2 0.2 0.2 0.1 Performance shares 0.1 0.1 0.1 — Weighted-average shares assuming dilution (diluted shares) 46.1 46.2 46.1 46.2 Earnings per share Basic (1) $ 0.49 $ 0.52 $ 0.91 $ 0.72 Diluted (1) $ 0.49 $ 0.51 $ 0.90 $ 0.72 ___________________________________________ (1) Basic and diluted earnings per share are calculated based on unrounded actual amounts. The number of common shares that were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive were 10,279 and 205,748 , for the three and nine months ended September 30, 2019 , respectively, and zero and 243,426 , for the same periods in 2018 , respectively.

Stock-based Compensation Plans

Stock-based Compensation Plans	9 Months Ended
	Sep. 30, 2019
Share-based Payment Arrangement [Abstract]
Stock-based Compensation Plans	Stock-based Compensation Plans 2019 Long-Term Incentive Plan On May 21, 2019, the Company’s stockholders approved the 2019 Long-Term Incentive Plan (“2019 LTIP”) which, among other things, replaces the Company’s 2010 Long-Term Incentive Plan (as amended, the “2010 LTIP”) and reserves for awards an aggregate of up to 4,236,959 shares, consisting of 3,523,862 shares of the Company’s common stock currently available for future issuance under the 2019 LTIP, and 713,097 shares that may become available for future issuance under the 2019 LTIP in the event of forfeitures of currently outstanding awards. The 2019 LTIP allows the Company to grant, among other things, time-vesting and performance-vesting restricted stock unit awards. Awards may be made under the 2019 LTIP through May 21, 2029. Grant Activities During the nine months ended September 30, 2019 and 2018 , the Company granted 230,235 and 350,757 , respectively, of time-vesting restricted stock units to certain of its employees and non-employee directors at a weighted-average grant date fair value of $29.67 and $23.66 , respectively. During the nine months ended September 30, 2019 , the Company granted 154,511 performance-based restricted stock units to certain of its employees at a weighted-average grant date fair value of $29.90 . The 154,511 performance shares represent the maximum number that can be earned. The number of performance shares that employees ultimately earn will be based on the Company’s achievement of certain specified performance targets for the full year of 2019 . During the nine months ended September 30, 2018 , the Company granted 175,581 performance-based shares to certain of its employees at a weighted-average grant date fair value of $23.78 , of which 141,406 were ultimately earned, based upon 2018 performance criteria achieved. Stock-based Compensation Cost Total stock-based compensation cost included in selling, general and administrative expenses was $3.1 million and $2.0 million for the three months ended September 30, 2019 and 2018 , respectively. During the nine months ended September 30, 2019 and 2018 , the Company recognized stock-based compensation cost of $7.2 million and $6.4 million , respectively. Total unrecognized stock-based compensation cost related to unvested share-based compensation arrangements was $12.8 million at September 30, 2019 , which is expected to be recognized over a weighted-average period of 1.7 years . Total unrecognized stock-based compensation cost is adjusted for any unearned performance shares or forfeited shares.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2019
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Dividends The Board of Directors approved the following cash dividends in 2019 (in millions, except per share data): Declaration Date Dividend Per Share Record Date Cash Payment Amount Payment Date February 28, 2019 $0.11 March 12, 2019 $5.1 March 22, 2019 May 7, 2019 $0.11 May 23, 2019 $5.1 June 14, 2019 August 6, 2019 $0.11 August 22, 2019 $5.1 September 13, 2019 November 6, 2019 $0.12 November 19, 2019 N/A (1) December 13, 2019 ___________________________________________ (1) Amount will be determined based on common stock outstanding as of the record date. Repurchase of Common Stock On August 28, 2017 , the Company’s Board of Directors authorized a $40.0 million stock repurchase program (the “Program”), replacing the Company’s prior stock repurchase program. The timing, price and volume of purchases under the Program are based on market conditions, cash and liquidity requirements, relevant securities laws and other factors. The Program may be discontinued or amended at any time. The Program has no stated expiration date and terminates when the amount authorized has been expended or the Board of Directors withdraws its authorization. During the three and nine months ended September 30, 2019 , the Company spent $8.1 million to repurchase 250,925 shares of common stock under the Program. During the three months ended September 30, 2018 , the Company spent $5.0 million to repurchase 145,572 shares of common stock under the Program. During the nine months ended September 30, 2018 , the Company spent $12.5 million to repurchase 501,680 shares of common stock under the Program. As of September 30, 2019 , there was $14.3 million available for future share repurchases under the Program.

Segment and Geographic Informat

Segment and Geographic Information	9 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Segment and Geographic Information	Segment and Geographic Information The Company identifies its operating segments based primarily on the way the Chief Operating Decision Maker (“CODM”) evaluates performance and makes decisions. The Chief Executive Officer of the Company has been identified as the CODM. 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”), each of which consists of customers that have similar characteristics. Therefore, the Company has determined that it has two operating segments, U.S. and Canada, which aggregate to one reportable segment. Additionally, 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 geographic areas is as follows (in millions): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Net sales: United States $ 3,999.3 $ 3,852.7 $ 11,348.2 $ 11,136.0 Canada 415.7 404.4 1,132.4 1,127.2 Corporate (1) 7.6 16.1 35.1 42.4 Total $ 4,422.6 $ 4,273.2 $ 12,515.7 $ 12,305.6 Income before income taxes: United States $ 33.5 $ 39.5 $ 74.1 $ 68.3 Canada 3.8 2.1 7.7 5.3 Corporate (2) (6.7 ) (10.5 ) (25.2 ) (28.9 ) Total $ 30.6 $ 31.1 $ 56.6 $ 44.7 Interest expense, net: (3) United States $ 15.6 $ 14.3 $ 41.4 $ 41.5 Canada 0.2 0.1 1.0 0.7 Corporate (4) (11.6 ) (11.0 ) (31.6 ) (31.6 ) Total $ 4.2 $ 3.4 $ 10.8 $ 10.6 Depreciation and amortization: United States $ 10.6 $ 10.7 $ 32.0 $ 31.4 Canada 0.7 0.5 1.9 1.7 Corporate (5) 3.6 3.7 11.9 11.4 Total $ 14.9 $ 14.9 $ 45.8 $ 44.5 Capital expenditures: United States $ 5.4 $ 5.6 $ 13.9 $ 14.1 Canada 0.7 0.1 1.4 0.8 Total $ 6.1 $ 5.7 $ 15.3 $ 14.9 ___________________________________________ (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. (3) Includes $0.1 million and $0.3 million of interest income for the three and nine months ended September 30, 2019 , respectively. (4) Consists primarily of intercompany eliminations for interest. (5) Consists primarily of depreciation for the consolidation centers and amortization of intangible assets. Identifiable assets by geographic area are as follows (in millions): September 30, December 31, Identifiable assets: United States $ 2,003.8 $ 1,528.6 Canada 125.5 137.5 Total $ 2,129.3 $ 1,666.1 The net sales mix for the Company’s primary product categories is as follows (in millions): Three Months Ended Nine Months Ended September 30, September 30, Product Category 2019 2018 2019 2018 Cigarettes $ 2,880.0 $ 2,874.6 $ 8,181.5 $ 8,254.8 Food 476.8 436.4 1,314.6 1,254.8 Fresh 135.8 125.8 376.1 358.1 Candy 269.7 248.1 782.8 749.3 Other tobacco products 370.4 352.8 1,068.9 1,044.2 Health, beauty & general 226.0 177.1 630.3 489.1 Beverages 63.9 57.6 160.2 150.0 Equipment/other — 0.8 1.3 5.3 Total food/non-food products 1,542.6 1,398.6 4,334.2 4,050.8 Total net sales $ 4,422.6 $ 4,273.2 $ 12,515.7 $ 12,305.6

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Accounting	Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated balance sheet as of September 30, 2019 , the unaudited condensed consolidated statements of operations and comprehensive income, the unaudited condensed consolidated statements of stockholders’ equity for the three and nine months ended September 30, 2019 and 2018 , and the unaudited condensed consolidated statements of cash flows for the nine months ended September 30, 2019 and 2018 , have been prepared in accordance with the requirements of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting. Accordingly, certain footnotes and other financial information that are normally required by generally accepted accounting principles in the U.S. (“GAAP”) have been condensed or omitted. The condensed consolidated balance sheet as of December 31, 2018 has been derived from the Company’s audited financial statements, which are included in its 2018 Annual Report on Form 10-K, filed with the SEC on March 1, 2019 . 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. The unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements in its Annual Report on Form 10-K, for the year ended December 31, 2018 . The unaudited condensed consolidated interim financial statements include all adjustments necessary for the fair presentation of the Company’s consolidated results of operations, financial position, comprehensive income, changes in stockholders’ equity and cash flows. Results for the interim periods are not necessarily indicative of results to be expected for the full year or any other future periods. Subsequent to the issuance of the Company’s interim condensed consolidated financial statements as of and for the three and nine months ended September 30, 2018 , management determined that the amount of foreign currency translation loss disclosed for the nine months ended September 30, 2018 was overstated by $0.9 million in the condensed consolidated statement of comprehensive income, which also impacted retained earnings and accumulated other comprehensive loss by the same amount as of September 30, 2018 , as currently presented in the condensed consolidated statement of stockholders’ equity. The impacted financial statement line items have been adjusted in the prior periods presented to correct for this overstatement.
Principles of Consolidation	Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated balance sheet as of September 30, 2019 , the unaudited condensed consolidated statements of operations and comprehensive income, the unaudited condensed consolidated statements of stockholders’ equity for the three and nine months ended September 30, 2019 and 2018 , and the unaudited condensed consolidated statements of cash flows for the nine months ended September 30, 2019 and 2018 , have been prepared in accordance with the requirements of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting. Accordingly, certain footnotes and other financial information that are normally required by generally accepted accounting principles in the U.S. (“GAAP”) have been condensed or omitted. The condensed consolidated balance sheet as of December 31, 2018 has been derived from the Company’s audited financial statements, which are included in its 2018 Annual Report on Form 10-K, filed with the SEC on March 1, 2019 . 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. The unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements in its Annual Report on Form 10-K, for the year ended December 31, 2018 . The unaudited condensed consolidated interim financial statements include all adjustments necessary for the fair presentation of the Company’s consolidated results of operations, financial position, comprehensive income, changes in stockholders’ equity and cash flows. Results for the interim periods are not necessarily indicative of results to be expected for the full year or any other future periods. Subsequent to the issuance of the Company’s interim condensed consolidated financial statements as of and for the three and nine months ended September 30, 2018 , management determined that the amount of foreign currency translation loss disclosed for the nine months ended September 30, 2018 was overstated by $0.9 million in the condensed consolidated statement of comprehensive income, which also impacted retained earnings and accumulated other comprehensive loss by the same amount as of September 30, 2018 , as currently presented in the condensed consolidated statement of stockholders’ equity. The impacted financial statement line items have been adjusted in the prior periods presented to correct for this overstatement.
Adoption of Other Accounting Pronouncements and Recent Accounting Standards or Updates Not Yet Effective	Adoption of Other Accounting Pronouncements On February 25, 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which supersedes the lease accounting requirements in ASC 840. The most significant among the changes in ASU 2016-02 is the recognition of right-of-use (“ROU”) assets and corresponding lease liabilities for leases classified as operating leases. The accounting for finance leases, which were classified as capital leases under historical GAAP, remains substantially unchanged. The lease liabilities are equal to the present value of the remaining lease payments while the ROU asset is determined based on the amount of the lease liability, plus initial direct costs incurred less lease incentives. The Company elected the optional transition method to apply ASU 2016-02 prospectively at adoption effective January 1, 2019, which resulted in recognition of additional lease assets of approximately $232.1 million , lease liabilities of $244.9 million , and a decrease of deferred rent recorded under ASC 840 of $12.8 million . Comparative periods presented in the Consolidated Financial Statements prior to January 1, 2019 continue to be presented under ASC 840. The Company has implemented internal controls and new lease software to assist with future reporting. ASU 2016-02 does not have an impact on the Company’s debt-covenant compliance under its current revolving credit facility. In accordance with an accounting policy election under ASU 2016-02, the Company does not recognize assets or liabilities for leases with an initial term of twelve months or less; these short-term lease payments are recognized in the consolidated statements of operations on a straight-line basis over the lease term. The Company elected the package of practical expedients within ASU 2016-02 that allows an entity to not reassess, prior to the effective date, (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases, or (iii) initial direct costs for any existing leases. The Company also elected the practical expedient to combine lease and non-lease components for all asset classes. Recent Accounting Standards or Updates Not Yet Effective On January 26, 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). The new guidance simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. ASU 2017-04 requires goodwill impairment to be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of its goodwill. ASU 2017-04 requires prospective application and is effective for annual periods beginning after December 15, 2019. ASU 2017-04 will require the Company to amend its methodology for determining any goodwill impairment calculations beginning in 2020.
Concentration of Credit Risks	Concentration of Credit Risks 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. 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 receivables are typically not collateralized, but the Company may require prepayments or other guarantees whenever deemed necessary.

Inventories, net (Tables)

Inventories, net (Tables)	9 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories consist of the following (in millions): September 30, December 31, Inventories at FIFO, net of reserves $ 1,068.8 $ 866.1 Less: LIFO reserve (198.8 ) (177.1 ) Total inventories, net of reserves $ 870.0 $ 689.0

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Schedule of Assets and Liabilities, Lessee	Leases consist of the following (in millions): Assets Classification September 30, Operating Operating lease ROU assets $ 208.5 Finance Property and equipment, net 49.1 Total leases $ 257.6 Liabilities Current: Operating Operating lease liabilities $ 40.3 Finance Accrued liabilities 6.9 Non-current: Operating Long-term operating lease liabilities 181.2 Finance Long-term debt 47.9 Total lease liabilities $ 276.3
Schedule of Lease Cost	Weighted-average remaining lease term and weighted-average discount rate regarding the Company’s leases were as follows: Lease term September 30, Weighted-average remaining lease term (years): Operating 7.3 Finance 8.0 Discount rate Weighted-average discount rate: Operating 4.8 % Finance 4.8 % Other information regarding the Company’s leases were as follows (in millions): Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ 38.5 Operating cash flows used by finance leases $ 1.5 Financing cash flows used by finance leases $ 3.6 Lease liabilities arising from obtaining new ROU assets: Operating leases $ 7.0 Finance leases $ 29.3 The components of lease costs were as follows (in millions): Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Operating lease cost $ 13.0 $ 38.9 Finance lease cost: Amortization of leased assets 1.6 3.9 Interest on lease liabilities 0.6 1.5 Short-term lease cost 0.4 1.2 Variable lease cost 4.9 16.3 Net lease cost $ 20.5 $ 61.8
Schedule of Maturity of Lease Liabilities	Maturity of lease liabilities as of September 30, 2019 , were as follows (in millions): Operating leases Finance leases Total 2019 $ 12.8 $ 2.4 $ 15.2 2020 48.7 9.2 57.9 2021 41.8 8.6 50.4 2022 33.5 8.5 42.0 2023 26.2 8.2 34.4 2024 and thereafter 103.4 29.5 132.9 Total lease payments 266.4 66.4 332.8 Less: interest (44.9 ) (11.6 ) (56.5 ) Present value of lease liabilities $ 221.5 $ 54.8 $ 276.3
Schedule of Future Minimum Operating Lease Payments	Operating Leases Year ending December 31, 2019 $ 61.6 2020 56.8 2021 48.4 2022 38.3 2023 29.8 2024 and thereafter 108.6 Total $ 343.5
Schedule of Future Minimum Capital Lease Payments	Future minimum capital lease payments as of December 31, 2018, as reported in the 2018 Form 10-K under ASC 840, were as follows (in millions): Capital Leases Year ending December 31, 2019 $ 4.7 2020 4.3 2021 3.5 2022 3.4 2023 3.2 2024 and thereafter 18.9 Total 38.0 Less: interest (8.6 ) Present value of future minimum lease payments 29.4 Less: current portion (3.2 ) Non-current portion $ 26.2

Long-term Debt (Tables)

Long-term Debt (Tables)	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Schedule of Long-term Debt	Long-term debt consists of the following (in millions): September 30, December 31, Amounts borrowed (Credit Facility) $ 488.0 $ 320.0 Obligations under finance leases 47.9 26.2 Total long-term debt $ 535.9 $ 346.2 Amounts related to the Credit Facility are as follows (in millions, except interest rate data): September 30, December 31, Amounts borrowed, net $ 488.0 $ 320.0 Outstanding letters of credit 16.7 16.7 Amounts available to borrow (1) 231.9 328.9 Unamortized debt issuance costs 1.9 2.5 ___________________________________________ (1) Subject to borrowing base limitations, and excluding expansion feature of $200.0 million . Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Average borrowings $ 371.1 $ 326.9 $ 295.0 $ 367.9 Range of borrowings 252.8 - 489.0 255.7 - 445.0 141.7 - 489.0 232.0 - 575.0 Unused Credit Facility and letter of credit participation fees (1) 0.3 0.3 0.9 0.8 Amortization of debt issuance costs (1) 0.2 0.2 0.6 0.6 Weighted-average interest rate (2) 3.5 % 3.3 % 3.6 % 3.0 % ___________________________________________ (1) Included in interest expense, net. (2) Calculated based on the daily cost of borrowing, reflecting a blend of prime and LIBOR rates.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Net Income Per Common 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): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Earnings Net income $ 22.5 $ 23.7 $ 41.5 $ 33.4 Shares Weighted-average common shares outstanding (basic shares) 45.8 45.9 45.8 46.1 Adjustment for assumed dilution: Restricted stock units 0.2 0.2 0.2 0.1 Performance shares 0.1 0.1 0.1 — Weighted-average shares assuming dilution (diluted shares) 46.1 46.2 46.1 46.2 Earnings per share Basic (1) $ 0.49 $ 0.52 $ 0.91 $ 0.72 Diluted (1) $ 0.49 $ 0.51 $ 0.90 $ 0.72 ___________________________________________ (1) Basic and diluted earnings per share are calculated based on unrounded actual amounts.

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2019
Equity [Abstract]
Schedule of Dividends	The Board of Directors approved the following cash dividends in 2019 (in millions, except per share data): Declaration Date Dividend Per Share Record Date Cash Payment Amount Payment Date February 28, 2019 $0.11 March 12, 2019 $5.1 March 22, 2019 May 7, 2019 $0.11 May 23, 2019 $5.1 June 14, 2019 August 6, 2019 $0.11 August 22, 2019 $5.1 September 13, 2019 November 6, 2019 $0.12 November 19, 2019 N/A (1) December 13, 2019 ___________________________________________ (1) Amount will be determined based on common stock outstanding as of the record date.

Segment and Geographic Inform_2

Segment and Geographic Information (Tables)	9 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Schedule of Business Operations Based on Geographic Area	Information about the Company’s business operations based on geographic areas is as follows (in millions): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Net sales: United States $ 3,999.3 $ 3,852.7 $ 11,348.2 $ 11,136.0 Canada 415.7 404.4 1,132.4 1,127.2 Corporate (1) 7.6 16.1 35.1 42.4 Total $ 4,422.6 $ 4,273.2 $ 12,515.7 $ 12,305.6 Income before income taxes: United States $ 33.5 $ 39.5 $ 74.1 $ 68.3 Canada 3.8 2.1 7.7 5.3 Corporate (2) (6.7 ) (10.5 ) (25.2 ) (28.9 ) Total $ 30.6 $ 31.1 $ 56.6 $ 44.7 Interest expense, net: (3) United States $ 15.6 $ 14.3 $ 41.4 $ 41.5 Canada 0.2 0.1 1.0 0.7 Corporate (4) (11.6 ) (11.0 ) (31.6 ) (31.6 ) Total $ 4.2 $ 3.4 $ 10.8 $ 10.6 Depreciation and amortization: United States $ 10.6 $ 10.7 $ 32.0 $ 31.4 Canada 0.7 0.5 1.9 1.7 Corporate (5) 3.6 3.7 11.9 11.4 Total $ 14.9 $ 14.9 $ 45.8 $ 44.5 Capital expenditures: United States $ 5.4 $ 5.6 $ 13.9 $ 14.1 Canada 0.7 0.1 1.4 0.8 Total $ 6.1 $ 5.7 $ 15.3 $ 14.9 ___________________________________________ (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. (3) Includes $0.1 million and $0.3 million of interest income for the three and nine months ended September 30, 2019 , respectively. (4) Consists primarily of intercompany eliminations for interest. (5) Consists primarily of depreciation for the consolidation centers and amortization of intangible assets. Identifiable assets by geographic area are as follows (in millions): September 30, December 31, Identifiable assets: United States $ 2,003.8 $ 1,528.6 Canada 125.5 137.5 Total $ 2,129.3 $ 1,666.1
Schedule of Net Sales Mix for Primary Product Categories	The net sales mix for the Company’s primary product categories is as follows (in millions): Three Months Ended Nine Months Ended September 30, September 30, Product Category 2019 2018 2019 2018 Cigarettes $ 2,880.0 $ 2,874.6 $ 8,181.5 $ 8,254.8 Food 476.8 436.4 1,314.6 1,254.8 Fresh 135.8 125.8 376.1 358.1 Candy 269.7 248.1 782.8 749.3 Other tobacco products 370.4 352.8 1,068.9 1,044.2 Health, beauty & general 226.0 177.1 630.3 489.1 Beverages 63.9 57.6 160.2 150.0 Equipment/other — 0.8 1.3 5.3 Total food/non-food products 1,542.6 1,398.6 4,334.2 4,050.8 Total net sales $ 4,422.6 $ 4,273.2 $ 12,515.7 $ 12,305.6

Summary of Company Informatio_2

Summary of Company Information and Basis of Presentation (Details) location in Thousands, $ in Millions	Sep. 30, 2019USD ($)centerlocationfacility	Dec. 31, 2018USD ($)	Sep. 30, 2018USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reclassification from retained earnings to accumulated other comprehensive loss	$ (407.8)	$ (381.6)
Reclassification from retained earnings to accumulated other comprehensive loss	$ (6.3)	$ (7.8)
Revenue from External Customer [Line Items]
Number of customer locations | location	43
Number of distribution centers | center	32
Number of distribution facilities operating as a third party logistics provider | facility	2
Restatement Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reclassification from retained earnings to accumulated other comprehensive loss			$ 0.9
Reclassification from retained earnings to accumulated other comprehensive loss			$ 0.9
United States
Revenue from External Customer [Line Items]
Number of distribution centers | center	27
Canada
Revenue from External Customer [Line Items]
Number of distribution centers | center	5

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Jan. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease ROU assets	$ 208.5		$ 208.5
Present value of lease liabilities	$ 221.5		$ 221.5
Net sales | Customer Concentration Risk | Murphy USA
Concentration Risk [Line Items]
Major customer percentage of net sales	13.00%	12.00%	13.00%	12.00%
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease ROU assets					$ 232.1
Present value of lease liabilities					244.9
Decrease of deferred rent recorded under ASC 840					$ 12.8

Inventories, net (Details)

Inventories, net (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Inventory [Line Items]
Inventories at FIFO, net of reserves	$ 1,068.8		$ 1,068.8		$ 866.1
Less: LIFO reserve	(198.8)		(198.8)		(177.1)
Total inventories, net of reserves	870		870		689
LIFO expense	7.3	$ 7.2	21.7	$ 20
United States
Inventory [Line Items]
Less: LIFO reserve	$ (198.8)		$ (198.8)		$ (177.1)

Leases - Narrative (Details)

Leases - Narrative (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019USD ($)extension_option
Lessee, Lease, Description [Line Items]
Number of lease extension options	1
Leases not yet commenced | $	$ 22
Minimum
Lessee, Lease, Description [Line Items]
Number of lease extension options	1

Leases - Schedule of Assets and

Leases - Schedule of Assets and Liabilities (Details) $ in Millions	Sep. 30, 2019USD ($)
Assets
Operating lease ROU assets	$ 208.5
Property and equipment, net	49.1
Total leases	257.6
Current:
Operating lease liabilities	40.3
Accrued liabilities	6.9
Non-current:
Long-term operating lease liabilities	181.2
Long-term debt	47.9
Present value of lease liabilities	$ 276.3

Leases - Schedule of Lease Cost

Leases - Schedule of Lease Cost (Details) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019USD ($)	Sep. 30, 2019USD ($)
Leases [Abstract]
Operating lease cost	$ 13	$ 38.9
Finance lease cost:
Amortization of leased assets	1.6	3.9
Interest on lease liabilities	0.6	1.5
Short-term lease cost	0.4	1.2
Variable lease cost	4.9	16.3
Lease term	$ 20.5	$ 61.8
Weighted-average remaining lease term (years):
Weighted-average remaining lease term (years), operating	7 years 3 months 18 days	7 years 3 months 18 days
Weighted-average remaining lease term (years), finance	8 years	8 years
Weighted-average discount rate:
Weighted-average discount rate, operating	4.80%	4.80%
Weighted-average discount rate, finance	4.80%	4.80%
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used by operating leases		$ 38.5
Operating cash flows used by finance leases		1.5
Financing cash flows used by finance leases		3.6
Lease liabilities arising from obtaining new ROU assets:
Lease liabilities arising from obtaining new ROU assets, operating leases		7
Lease liabilities arising from obtaining new ROU assets, finance leases		$ 29.3

Leases - Schedule of Maturity o

Leases - Schedule of Maturity of Lease Liabilities (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Operating leases
2019	$ 12.8
2020	48.7
2021	41.8
2022	33.5
2023	26.2
2024 and thereafter	103.4
Total lease payments	266.4
Less: interest	(44.9)
Present value of lease liabilities	221.5
Finance leases
2019	2.4
2020	9.2
2021	8.6
2022	8.5
2023	8.2
2024 and thereafter	29.5
Total lease payments	66.4
Less: interest	(11.6)
Present value of lease liabilities	54.8
2019	15.2
2020	57.9
2021	50.4
2022	42
2023	34.4
2024 and thereafter	132.9
Total lease payments	332.8
Less: interest	(56.5)
Present value of lease liabilities	$ 276.3
Operating leases
2019		$ 61.6
2020		56.8
2021		48.4
2022		38.3
2023		29.8
2024 and thereafter		108.6
Total		343.5
Capital Leases
2019		4.7
2020		4.3
2021		3.5
2022		3.4
2023		3.2
2024 and thereafter		18.9
Total		38
Less: interest		(8.6)
Present value of future minimum lease payments		29.4
Less: current portion		(3.2)
Non-current portion		$ 26.2

Long-term Debt - Schedule of Lo

Long-term Debt - Schedule of Long-term Debt (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Debt Instrument [Line Items]
Total long-term debt	$ 535,900,000		$ 535,900,000		$ 346,200,000
Amortization of debt issuance costs			600,000	$ 600,000
Revolving credit facility
Debt Instrument [Line Items]
Unamortized debt issuance costs	1,900,000		1,900,000		2,500,000
Revolving credit facility, expansion feature	200,000,000		200,000,000
Average borrowings	371,100,000	$ 326,900,000	295,000,000	367,900,000
Unused Credit Facility and letter of credit participation fees	300,000	300,000	900,000	800,000
Amortization of debt issuance costs	$ 200,000	$ 200,000	$ 600,000	$ 600,000
Weighted-average interest rate	3.50%	3.30%	3.60%	3.00%
Revolving credit facility
Debt Instrument [Line Items]
Total long-term debt	$ 488,000,000		$ 488,000,000		320,000,000
Outstanding letters of credit	16,700,000		16,700,000		16,700,000
Amounts available to borrow	231,900,000		231,900,000		328,900,000
Obligations under capital leases
Debt Instrument [Line Items]
Total long-term debt	47,900,000		47,900,000		$ 26,200,000
Minimum | Revolving credit facility
Debt Instrument [Line Items]
Average borrowings	252,800,000	$ 255,700,000	141,700,000	$ 232,000,000
Maximum | Revolving credit facility
Debt Instrument [Line Items]
Average borrowings	$ 489,000,000	$ 445,000,000	$ 489,000,000	$ 575,000,000

Long-term Debt - Narrative (Det

Long-term Debt - Narrative (Details) - Revolving credit facility	Sep. 30, 2019USD ($)
Debt Instrument [Line Items]
Revolving credit facility, maximum borrowing capacity	$ 750,000,000
Revolving credit facility, expansion feature	$ 200,000,000

Earnings Per Share - Computatio

Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Earnings
Net income	$ 22.5	$ 23.7	$ 41.5	$ 33.4
Shares
Weighted-average common shares outstanding (basic shares)	45.8	45.9	45.8	46.1
Adjustment for assumed dilution:
Weighted-average shares assuming dilution (diluted shares)	46.1	46.2	46.1	46.2
Earnings per share
Basic (in dollars per share)	$ 0.49	$ 0.52	$ 0.91	$ 0.72
Diluted (in dollars per share)	$ 0.49	$ 0.51	$ 0.90	$ 0.72
Restricted stock units
Adjustment for assumed dilution:
Incremental common shares attributable to share-based payment arrangements (in shares)	0.2	0.2	0.2	0.1
Performance shares
Adjustment for assumed dilution:
Incremental common shares attributable to share-based payment arrangements (in shares)	0.1	0.1	0.1	0

Earnings Per Share - Narrative

Earnings Per Share - Narrative (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Earnings Per Share [Abstract]
Anti-dilutive securities not included in the computation of diluted earnings per share (in shares)	10,279	0	205,748	243,426

Stock-based Compensation Plans

Stock-based Compensation Plans (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	May 21, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)					4,236,959
Shares available for issuance (in shares)					3,523,862
Shares available for issuance upon forfeiture of currently outstanding awards (in shares)					713,097
Stock-based compensation cost	$ 3.1	$ 2	$ 7.2	$ 6.4
Total unrecognized compensation cost related to non-vested share-based compensation arrangements	$ 12.8		$ 12.8
Compensation cost not yet recognized, period for recognition			1 year 8 months 12 days
Performance-Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, number of shares (in shares)			154,511	175,581
Grants in period, weighted average grant date fair value (in dollars per share)			$ 29.90	$ 23.78
Shares earned (in shares)				141,406
2010 LTIP | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, number of shares (in shares)			230,235	350,757
Grants in period, weighted average grant date fair value (in dollars per share)			$ 29.67	$ 23.66

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Dividends (Details) - USD ($) $ / shares in Units, $ in Millions	Nov. 06, 2019	Sep. 13, 2019	Aug. 06, 2019	Jun. 14, 2019	May 07, 2019	Mar. 22, 2019	Feb. 28, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Class of Stock [Line Items]
Dividends per share (in dollars per share)			$ 0.11		$ 0.11		$ 0.11	$ 0.11	$ 0.10	$ 0.33	$ 0.30
Cash Payment Amount		$ 5.1		$ 5.1		$ 5.1				$ 15.2	$ 13.9
Subsequent Event
Class of Stock [Line Items]
Dividends per share (in dollars per share)	$ 0.12

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Aug. 28, 2017
Equity [Abstract]
Authorized increase to stock repurchase plan					$ 40,000,000
Total repurchase costs	$ 8,100,000	$ 5,000,000	$ 8,100,000	$ 12,500,000
Number of shares repurchased (in shares)	250,925	145,572	250,925	501,680
Common stock available for future share repurchases, amount	$ 14,300,000		$ 14,300,000

Segment and Geographic Inform_3

Segment and Geographic Information - Narrative (Details)	9 Months Ended
	Sep. 30, 2019SegmentArea
Segment Reporting [Abstract]
Number of operating segments	2
Number of reportable segments	1
Number of geographic operating areas | Area	2

Segment and Geographic Inform_4

Segment and Geographic Information - Information by Geographic Areas (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Segment Reporting Information [Line Items]
Net sales	$ 4,422.6	$ 4,273.2	$ 12,515.7	$ 12,305.6
Income before income taxes:	30.6	31.1	56.6	44.7
Interest expense, net	4.2	3.4	10.8	10.6
Depreciation and amortization	14.9	14.9	45.8	44.5
Capital expenditures:	6.1	5.7	15.3	14.9
Interest income	0.1		0.3
Operating Segment | United States
Segment Reporting Information [Line Items]
Net sales	3,999.3	3,852.7	11,348.2	11,136
Income before income taxes:	33.5	39.5	74.1	68.3
Interest expense, net	15.6	14.3	41.4	41.5
Depreciation and amortization	10.6	10.7	32	31.4
Capital expenditures:	5.4	5.6	13.9	14.1
Operating Segment | Canada
Segment Reporting Information [Line Items]
Net sales	415.7	404.4	1,132.4	1,127.2
Income before income taxes:	3.8	2.1	7.7	5.3
Interest expense, net	0.2	0.1	1	0.7
Depreciation and amortization	0.7	0.5	1.9	1.7
Capital expenditures:	0.7	0.1	1.4	0.8
Corporate
Segment Reporting Information [Line Items]
Net sales	7.6	16.1	35.1	42.4
Income before income taxes:	(6.7)	(10.5)	(25.2)	(28.9)
Interest expense, net	(11.6)	(11)	(31.6)	(31.6)
Depreciation and amortization	$ 3.6	$ 3.7	$ 11.9	$ 11.4

Segment and Geographic Inform_5

Segment and Geographic Information - Identifiable Assets (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Identifiable assets:
Identifiable assets	$ 2,129.3	$ 1,666.1
United States
Identifiable assets:
Identifiable assets	2,003.8	1,528.6
Canada
Identifiable assets:
Identifiable assets	$ 125.5	$ 137.5

Segment and Geographic Inform_6

Segment and Geographic Information - Net Sales Mix By Primary Product Categories (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue from External Customer [Line Items]
Net sales	$ 4,422.6	$ 4,273.2	$ 12,515.7	$ 12,305.6
Cigarettes
Revenue from External Customer [Line Items]
Net sales	2,880	2,874.6	8,181.5	8,254.8
Food
Revenue from External Customer [Line Items]
Net sales	476.8	436.4	1,314.6	1,254.8
Fresh
Revenue from External Customer [Line Items]
Net sales	135.8	125.8	376.1	358.1
Candy
Revenue from External Customer [Line Items]
Net sales	269.7	248.1	782.8	749.3
Other tobacco products
Revenue from External Customer [Line Items]
Net sales	370.4	352.8	1,068.9	1,044.2
Health, beauty & general
Revenue from External Customer [Line Items]
Net sales	226	177.1	630.3	489.1
Beverages
Revenue from External Customer [Line Items]
Net sales	63.9	57.6	160.2	150
Equipment/other
Revenue from External Customer [Line Items]
Net sales	0	0.8	1.3	5.3
Total food/non-food products
Revenue from External Customer [Line Items]
Net sales	$ 1,542.6	$ 1,398.6	$ 4,334.2	$ 4,050.8