Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 26, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | THS | |
Entity Registrant Name | TREEHOUSE FOODS, INC. | |
Entity Central Index Key | 0001320695 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 56,138,851 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 79 | $ 164.3 |
Receivables, net | 367.3 | 351.3 |
Inventories | 854.2 | 839.7 |
Prepaid expenses and other current assets | 78.8 | 61.8 |
Total current assets | 1,379.3 | 1,417.1 |
Property, plant and equipment, net | 1,260 | 1,274.4 |
Operating lease right-of-use assets | 228.8 | 0 |
Goodwill | 2,163.9 | 2,161.4 |
Intangible assets, net | 690.5 | 700.2 |
Other assets, net | 42.5 | 46.2 |
Total assets | 5,765 | 5,599.3 |
Current liabilities: | ||
Accounts payable | 591.1 | 577.9 |
Accrued expenses | 245.6 | 256.1 |
Current portion of long-term debt | 4.6 | 1.2 |
Total current liabilities | 841.3 | 835.2 |
Long-term debt | 2,285.2 | 2,297.4 |
Operating lease liabilities | 204.6 | 0 |
Deferred income taxes | 155.2 | 154.2 |
Other long-term liabilities | 155.5 | 170.6 |
Total liabilities | 3,641.8 | 3,457.4 |
Commitments and contingencies (Note 14) | ||
Stockholders’ equity: | ||
Preferred stock, par value $0.01 per share, 10.0 shares authorized, none issued | 0 | 0 |
Common stock, par value $0.01 per share, 90.0 shares authorized, 56.2 and 56.0 shares issued and outstanding, respectively | 0.6 | 0.6 |
Treasury stock | (83.3) | (83.3) |
Additional paid-in capital | 2,137.5 | 2,135.8 |
Retained earnings | 158.6 | 185.9 |
Accumulated other comprehensive loss | (90.2) | (97.1) |
Total stockholders’ equity | 2,123.2 | 2,141.9 |
Total liabilities and stockholders’ equity | $ 5,765 | $ 5,599.3 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 90,000,000 | 90,000,000 |
Common stock, shares issued (in shares) | 56,200,000 | 56,000,000 |
Common stock, shares outstanding (in shares) | 56,200,000 | 56,000,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 1,301.1 | $ 1,481.2 |
Cost of sales | 1,106.5 | 1,249.3 |
Gross profit | 194.6 | 231.9 |
Operating expenses: | ||
Selling and distribution | 79.2 | 108.4 |
General and administrative | 65.9 | 81.1 |
Amortization expense | 21.6 | 22.2 |
Other operating expense, net | 28.8 | 28.9 |
Total operating expenses | 195.5 | 240.6 |
Operating loss | (0.9) | (8.7) |
Other expense: | ||
Interest expense | 26.9 | 28.5 |
(Gain) loss on foreign currency exchange | (0.4) | 2.5 |
Other expense, net | 12.2 | 4.2 |
Total other expense | 38.7 | 35.2 |
Loss before income taxes | (39.6) | (43.9) |
Income tax benefit | (12.3) | (9.8) |
Net loss | $ (27.3) | $ (34.1) |
Net loss per common share: | ||
Basic (in usd per share) | $ (0.49) | $ (0.60) |
Diluted (in usd per share) | $ (0.49) | $ (0.60) |
Weighted average common shares: | ||
Basic (shares) | 56.1 | 56.5 |
Diluted (shares) | 56.1 | 56.5 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (27.3) | $ (34.1) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 6.8 | (10.1) |
Pension and postretirement reclassification adjustment | 0.1 | 0.2 |
Adoption of ASU 2018-02 reclassification to retained earnings | 0 | (1.1) |
Other comprehensive income (loss) | 6.9 | (11) |
Comprehensive loss | $ (20.4) | $ (45.1) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss |
Beginning balance, shares at Dec. 31, 2017 | 57.2 | (0.6) | ||||
Beginning balance at Dec. 31, 2017 | $ 2,263.3 | $ 0.6 | $ 2,107 | $ 245.9 | $ (28.7) | $ (61.5) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (34.1) | (34.1) | ||||
Other comprehensive (loss) income | (9.9) | (9.9) | ||||
Treasury stock repurchases, shares | (0.4) | |||||
Treasury stock repurchases, value | $ (17.1) | $ (17.1) | ||||
Equity awards exercised, shares | 0.2 | |||||
Equity awards exercised, value | 0.9 | 0.9 | ||||
Stock-based compensation | 16.3 | 16.3 | ||||
Ending balance, shares at Mar. 31, 2018 | 57.4 | (1) | ||||
Ending balance at Mar. 31, 2018 | 2,219.8 | $ 0.6 | 2,124.2 | 213.3 | $ (45.8) | (72.5) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of accounting change | 0.4 | 1.5 | (1.1) | |||
Beginning balance, shares at Dec. 31, 2018 | 57.8 | (1.8) | ||||
Beginning balance at Dec. 31, 2018 | 2,141.9 | $ 0.6 | 2,135.8 | 185.9 | $ (83.3) | (97.1) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (27.3) | (27.3) | ||||
Other comprehensive (loss) income | 6.9 | 6.9 | ||||
Equity awards exercised, shares | 0.2 | |||||
Equity awards exercised, value | (4.4) | (4.4) | ||||
Stock-based compensation | 6.1 | 6.1 | ||||
Ending balance, shares at Mar. 31, 2019 | 58 | (1.8) | ||||
Ending balance at Mar. 31, 2019 | $ 2,123.2 | $ 0.6 | $ 2,137.5 | $ 158.6 | $ (83.3) | $ (90.2) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (27.3) | $ (34.1) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 61.9 | 67 |
Stock-based compensation | 6.1 | 16.3 |
Unrealized loss on derivative contracts | 15.9 | 5.7 |
Other | 0.7 | 7.7 |
Changes in operating assets and liabilities, net of effect of divestitures: | ||
Receivables | (16.4) | (16.5) |
Inventories | (13.2) | (24.9) |
Prepaid expenses and other assets | (14.3) | (10.5) |
Accounts payable, accrued expenses, and other liabilities | (51.3) | 47.1 |
Net cash (used in) provided by operating activities | (37.9) | 57.8 |
Cash flows from investing activities: | ||
Additions to property, plant, and equipment | (29.9) | (38.5) |
Additions to intangible assets | (6.5) | (2.9) |
Other | (0.1) | (0.3) |
Net cash used in investing activities | (36.5) | (41.7) |
Cash flows from financing activities: | ||
Borrowings under Revolving Credit Facility | 14 | 5.9 |
Payments under Revolving Credit Facility | (14) | (5.9) |
Payments on financing lease obligations | (0.4) | (0.3) |
Payments on Term Loans | (10) | (3.5) |
Repurchases of common stock | 0 | (17.1) |
Receipts related to stock-based award activities | 0.2 | 1.9 |
Payments related to stock-based award activities | (4.6) | (1.1) |
Net cash used in financing activities | (14.8) | (20.1) |
Effect of exchange rate changes on cash and cash equivalents | 3.9 | (0.3) |
Net decrease in cash and cash equivalents | (85.3) | (4.3) |
Cash and cash equivalents, beginning of period | 164.3 | 132.8 |
Cash and cash equivalents, end of period | 79 | 128.5 |
Supplemental cash flow disclosures | ||
Interest paid | 41.8 | 44.3 |
Net income taxes paid | 4.7 | 2.4 |
Non-cash investing activities: | ||
Accrued purchase of property and equipment | 18.9 | 21 |
Accrued other intangible assets | 7.3 | $ 4.8 |
Right-of-use assets and operating lease obligations recognized at / after ASU 2016-02 transition | $ 6.1 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. BASIS OF PRESENTATION The unaudited Condensed Consolidated Financial Statements included herein have been prepared by TreeHouse Foods, Inc. and its consolidated subsidiaries (the “Company,” “TreeHouse,” “we,” “us,” or “our”), pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) applicable to quarterly reporting on Form 10-Q. In our opinion, these statements include all adjustments necessary for a fair presentation of the results of all interim periods reported herein. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted as permitted by such rules and regulations. The Condensed Consolidated Financial Statements and related notes should be read in conjunction with the Consolidated Financial Statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 . Results of operations for interim periods are not necessarily indicative of annual results. In the first quarter of 2019, the Company changed how it manages its business, allocates resources, and goes to market, which resulted in modifications to its organizational and segment structure. All prior period information has been recast to reflect this change in reportable segments. Refer to Note 16 for additional information. The preparation of our Condensed Consolidated Financial Statements in conformity with GAAP requires us to use our judgment to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements, and the reported amounts of net sales and expenses during the reporting period. Actual results could differ from these estimates. A detailed description of the Company’s significant accounting policies can be found in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 . |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 2. RECENT ACCOUNTING PRONOUNCEMENTS Adopted In February 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-02, Leases , to increase transparency and comparability by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The main difference between existing GAAP and this ASU is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under existing GAAP. The standard requires that entities apply the effects of these changes using a modified retrospective approach, which includes a number of optional practical expedients. In July 2018, the FASB issued ASU No. 2018-11, Leases (842), Targeted Improvements, which provides an additional transition election to not restate comparative periods for the effects of applying the new standard. This transition election permits entities to apply ASU No. 2016-02 on the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings. These ASU's are effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company adopted these ASUs as of January 1, 2019 under the modified retrospective transition method prescribed by ASU 2018-11. Under this transition method, financial results reported in periods prior to the first quarter of 2019 are unchanged. The adoption of these ASUs resulted in the recognition of approximately $252.5 million of right-of-use assets and lease liabilities as of January 1, 2019. Also as a result of adoption, the Company reclassified $17.2 million of liabilities and $0.6 million of assets on its Condensed Consolidated Balance Sheet as of January 1, 2019 against the operating lease right-of-use asset. The adoption of these ASUs did not result in a cumulative-effect adjustment to the opening balance of retained earnings. In addition, the Company elected the package of practical expedients permitted by the transition guidance. The adoption of these ASU’s did not have an impact on the Company’s Condensed Consolidated Statements of Operations or Cash Flows. Refer to Note 4 for additional information regarding the Company's leases. Not yet adopted The Company does not anticipate a material impact upon adoption from any accounting standards issued but not yet adopted. |
Restructuring Programs
Restructuring Programs | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Programs | 3. RESTRUCTURING PROGRAMS The Company’s restructuring and margin improvement activities are part of an enterprise-wide transformation to improve long-term profitability of the Company. These activities are aggregated into three categories: (1) TreeHouse 2020 – a long-term growth and margin improvement strategy; (2) Structure to Win – an operating expenses improvement program; and (3) other restructuring and plant closing costs (collectively the “Restructuring Programs”). The costs by activity for the Restructuring Programs are outlined below: Three Months Ended 2019 2018 (In millions) TreeHouse 2020 $ 28.0 $ 27.7 Structure to Win 5.7 8.4 Other restructuring and plant closing costs — 2.5 Total Restructuring Programs $ 33.7 $ 38.6 Expenses associated with these programs are recorded in Cost of sales, General and administrative, and Other operating expense, net in the Condensed Consolidated Statements of Operations. The Company does not allocate costs associated with Restructuring Programs to reportable segments when evaluating the performance of its segments. As a result, costs associated with Restructuring Programs are not presented by reportable segment. See Note 16 for more information. Below is a summary of costs by line item for the Restructuring Programs: Three Months Ended 2019 2018 (In millions) Cost of sales $ 4.1 $ 9.7 General and administrative 0.8 — Other operating expense, net 28.8 28.9 Total $ 33.7 $ 38.6 The table below presents the activity of the liabilities associated with the Restructuring Programs as of March 31, 2019 : Severance Other Costs Total Liabilities (In millions) Balance as of December 31, 2018 $ 19.3 $ 2.6 $ 21.9 Expenses recognized 3.1 — 3.1 Cash payments (7.7 ) — (7.7 ) Reclassification due to adoption of ASU 2016-02 — (2.6 ) (2.6 ) Balance as of March 31, 2019 $ 14.7 $ — $ 14.7 Liabilities recorded as of March 31, 2019 associated with total exit cost reserves primarily relate to severance. The severance liability was included in Accrued expenses in the Condensed Consolidated Balance Sheets. Other costs represent early lease termination liabilities. As part of the Company's adoption of ASU 2016-02, these lease termination liabilities were offset with the initial right-of-use asset at transition. Refer to Note 4 for additional information. (1) TreeHouse 2020 In the third quarter of 2017, the Company announced TreeHouse 2020, a program intended to accelerate long-term growth through optimization of our manufacturing network, transformation of our mixing centers and warehouse footprint, and leveraging of systems and processes to drive performance. The Company’s workstreams related to these activities and selling, general, and administrative cost reductions will increase our capacity utilization, expand operating margins, and streamline our plant structure to optimize our supply chain. This program began in 2017 and will be executed through 2020. In 2017, the Company announced the closure of the Brooklyn Park, Minnesota and Plymouth, Indiana facilities, as well as the downsizing of the Dothan, Alabama facility. In the first quarter of 2018, the Company announced the closure of the Company’s Visalia, California and Battle Creek, Michigan facilities. All facilities have either closed or are successfully tracking toward their closure dates noted in the table below. The table below shows key information regarding the Company's announced plant closures, a component of the broader TreeHouse 2020 program: Facility Location Date of Closure Announcement Full Facility Closure Primary Products Produced Primary Segment(s) Affected Total Costs to Close Total Cash Costs to Close (In millions) Dothan, Alabama August 3, 2017 Partial closure completed in Q3 2018 Trail mix and snack nuts Snacks $ 11.8 $ 6.1 Brooklyn Park, Minnesota August 3, 2017 Completed in Q4 2017 Dry dinners Meal Solutions 16.1 9.6 Plymouth, Indiana August 3, 2017 Completed in Q4 2017 Pickles Meal Solutions 9.3 3.8 Battle Creek, Michigan January 31, 2018 Q3 2019 Ready-to-eat cereal Baked Goods 18.2 11.8 Visalia, California February 15, 2018 Completed in Q1 2019 Pretzels Baked Goods 22.1 8.8 $ 77.5 $ 40.1 During the third quarter of 2018, the Company announced the closure of its Omaha, Nebraska office by January 31, 2019. This closure was completed during the first quarter of 2019. Below is a summary of the overall TreeHouse 2020 program costs by type: Three Months Ended March 31, Cumulative Costs To Date Total Expected Costs 2019 2018 (In millions) Asset-related $ 2.9 $ 5.3 $ 58.7 $ 71.0 Employee-related 4.7 8.4 54.6 77.0 Other costs 20.4 14.0 109.1 202.0 Total $ 28.0 $ 27.7 $ 222.4 $ 350.0 For the three months ended March 31, 2019 and 2018, asset-related costs primarily consisted of accelerated depreciation; employee-related costs primarily consisted of dedicated project employee cost and severance; and other costs primarily consisted of consulting costs. Asset-related costs were recorded in Cost of sales while employee-related and other costs were primarily recorded in Other operating expense, net of the Condensed Consolidated Statement of Operations. (2) Structure to Win In the first quarter of 2018, the Company announced an operating expenses improvement program (“Structure to Win”) designed to align our organization structure with strategic priorities. The program is intended to drive operational effectiveness, cost reduction, and position the Company for growth with a focus on a lean customer focused go-to-market team, centralized supply chain, and streamlined administrative functions. Below is a summary of costs by type associated with the Structure to Win program: Three Months Ended March 31, Cumulative Costs To Date Total Expected Costs 2019 2018 (In millions) Asset-related $ 0.8 $ — $ 3.0 $ 3.8 Employee-related 1.4 5.5 23.7 31.8 Other costs 3.5 2.9 24.1 27.4 Total $ 5.7 $ 8.4 $ 50.8 $ 63.0 The Company increased total expected costs for the Structure to Win program from $49.5 million to $63.0 million during the three months ended March 31, 2019 due to additional actions taken to consolidate our administrative footprint and better align divisional support structures. For the three months ended March 31, 2019 and 2018, employee-related costs primarily consisted of severance and other costs primarily consisted of consulting services. Asset-related costs are included in General and administrative expense and the employee-related and other costs are included in Other operating expense, net of the Condensed Consolidated Statements of Operations. During the first quarter of 2019, the Company announced the closure of its St. Louis, Missouri office by June 28, 2019. Estimated costs to close are approximately $7.8 million , most of which are anticipated to be in cash. (3) Other Restructuring and Plant Closing Costs The Company continually analyzes its plant network to align operations with the current and future needs of its customers. Facility closure decisions are made when the Company identifies opportunities to lower production costs or eliminate excess manufacturing capacity while maintaining a competitive cost structure, service levels, and product quality. Expenses associated with facility closures are primarily aggregated in Other operating expense, net of the Condensed Consolidated Statements of Operations, with the exception of asset-related costs, which are recorded in Cost of sales. Other restructuring and plant closing costs were $2.5 million for the three months ended March 31, 2018. There were no costs associated with other restructuring and plant closing costs during the three months ended March 31, 2019. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | 4. LEASES The Company has operating and finance leases for manufacturing facilities, warehouses and distribution centers, office space, and certain equipment. Remaining lease terms for these leases range from 1 year to 21 years. Some of the Company’s leases include options to extend the leases for up to 29 years, and some of which include options to terminate the leases within 1 year. The Company does not record leases with an initial term of 12 months or less on the balance sheet. Expense for these short-term leases is recorded on a straight-line basis over the lease term. Supplemental balance sheet information related to leases was as follows: Balance Sheet Classification March 31, 2019 Assets Operating Operating lease right-of-use assets $ 228.8 Finance Property, plant, and equipment, net 1.8 Total assets $ 230.6 Liabilities Current liabilities Operating Accrued expenses $ 41.1 Finance Current portion of long-term debt 1.1 Total current liabilities 42.2 Noncurrent liabilities Operating Operating lease liabilities 204.6 Finance Long-term debt 1.3 Total noncurrent liabilities 205.9 Total lease liabilities $ 248.1 Right-of-use assets and lease liabilities are measured and recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The Company has elected the practical expedient to combine lease and nonlease components into a single component for all of its leases. The majority of the Company's leases do not provide an implicit rate; therefore, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments for those leases. The Company has elected the practical expedient to apply discount rates to its lease portfolio based on the portfolio approach. The portfolios grouped the leases by remaining lease term. The Company includes options to extend or terminate the lease in the measurement of the right-of-use asset and lease liability when it is reasonably certain that it will exercise such options. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The components of lease expense were as follows: Three Months Ended Income Statement Classification March 31, 2019 Operating lease cost Cost of sales and General and administrative $ 11.6 Finance lease cost: Amortization of right-of-use assets Cost of sales and General and administrative 0.4 Interest on lease liabilities Interest expense 0.1 Total finance lease cost 0.5 Variable lease cost (1) Cost of sales and General and administrative 1.2 Net lease cost $ 13.3 (1) Includes short-term leases, which are immaterial. Fixed lease costs represent the explicitly quantified lease payments prescribed by the lease agreement. Variable lease payments that depend on an index or a rate are included in the calculation of the right-of-use asset and lease liability based on the index or rate at lease commencement. Other variable lease payments such as those that depend on the usage or performance of an underlying asset are not included in the measurement of the right-of-use asset or lease liability. Future maturities of lease liabilities were as follows: Operating Leases (1) Finance Leases Nine months ended December 31, 2019 $ 39.3 $ 1.1 2020 47.0 0.5 2021 42.2 0.4 2022 33.8 0.1 2023 27.1 0.1 Thereafter 115.6 0.3 Total lease payments 305.0 2.5 Less: Interest (59.3 ) (0.1 ) Present value of lease liabilities $ 245.7 $ 2.4 (1) Operating lease payments include $3.0 million related to options to extend lease terms that are reasonably certain of being exercised. Other information related to leases were as follows: Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 12.6 Operating cash flows from finance leases 0.1 Financing cash flows from finance leases 0.4 The weighted average remaining lease term was as follows: March 31, 2019 Operating leases (in years) 7.9 Finance leases (in years) 2.6 The weighted average discount rate was as follows: March 31, 2019 Operating leases 4.8 % Finance leases 4.1 |
Leases | 4. LEASES The Company has operating and finance leases for manufacturing facilities, warehouses and distribution centers, office space, and certain equipment. Remaining lease terms for these leases range from 1 year to 21 years. Some of the Company’s leases include options to extend the leases for up to 29 years, and some of which include options to terminate the leases within 1 year. The Company does not record leases with an initial term of 12 months or less on the balance sheet. Expense for these short-term leases is recorded on a straight-line basis over the lease term. Supplemental balance sheet information related to leases was as follows: Balance Sheet Classification March 31, 2019 Assets Operating Operating lease right-of-use assets $ 228.8 Finance Property, plant, and equipment, net 1.8 Total assets $ 230.6 Liabilities Current liabilities Operating Accrued expenses $ 41.1 Finance Current portion of long-term debt 1.1 Total current liabilities 42.2 Noncurrent liabilities Operating Operating lease liabilities 204.6 Finance Long-term debt 1.3 Total noncurrent liabilities 205.9 Total lease liabilities $ 248.1 Right-of-use assets and lease liabilities are measured and recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The Company has elected the practical expedient to combine lease and nonlease components into a single component for all of its leases. The majority of the Company's leases do not provide an implicit rate; therefore, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments for those leases. The Company has elected the practical expedient to apply discount rates to its lease portfolio based on the portfolio approach. The portfolios grouped the leases by remaining lease term. The Company includes options to extend or terminate the lease in the measurement of the right-of-use asset and lease liability when it is reasonably certain that it will exercise such options. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The components of lease expense were as follows: Three Months Ended Income Statement Classification March 31, 2019 Operating lease cost Cost of sales and General and administrative $ 11.6 Finance lease cost: Amortization of right-of-use assets Cost of sales and General and administrative 0.4 Interest on lease liabilities Interest expense 0.1 Total finance lease cost 0.5 Variable lease cost (1) Cost of sales and General and administrative 1.2 Net lease cost $ 13.3 (1) Includes short-term leases, which are immaterial. Fixed lease costs represent the explicitly quantified lease payments prescribed by the lease agreement. Variable lease payments that depend on an index or a rate are included in the calculation of the right-of-use asset and lease liability based on the index or rate at lease commencement. Other variable lease payments such as those that depend on the usage or performance of an underlying asset are not included in the measurement of the right-of-use asset or lease liability. Future maturities of lease liabilities were as follows: Operating Leases (1) Finance Leases Nine months ended December 31, 2019 $ 39.3 $ 1.1 2020 47.0 0.5 2021 42.2 0.4 2022 33.8 0.1 2023 27.1 0.1 Thereafter 115.6 0.3 Total lease payments 305.0 2.5 Less: Interest (59.3 ) (0.1 ) Present value of lease liabilities $ 245.7 $ 2.4 (1) Operating lease payments include $3.0 million related to options to extend lease terms that are reasonably certain of being exercised. Other information related to leases were as follows: Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 12.6 Operating cash flows from finance leases 0.1 Financing cash flows from finance leases 0.4 The weighted average remaining lease term was as follows: March 31, 2019 Operating leases (in years) 7.9 Finance leases (in years) 2.6 The weighted average discount rate was as follows: March 31, 2019 Operating leases 4.8 % Finance leases 4.1 |
Receivables Sales Agreement
Receivables Sales Agreement | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Receivables Sales Agreement | 5. RECEIVABLES SALES AGREEMENT In December 2017, the Company entered into an agreement (the “Receivables Sales Agreement”), to sell, on a revolving basis, certain trade accounts receivable balances to an unrelated third-party financial institution. Transfers under this agreement are accounted for as sales of receivables resulting in the receivables being de-recognized from the Condensed Consolidated Balance Sheet. The Receivables Sales Agreement provides for the sale of certain receivables on a revolving basis until terminated by either party. On September 28, 2018, the Company entered into an Amendment to the Receivables Sales Agreement, increasing the maximum receivables that may be sold at any time from $200.0 million to $300.0 million . The outstanding amount of accounts receivable sold under the Receivables Sales Agreement were $148.7 million and $177.0 million as of March 31, 2019 and December 31, 2018 , respectively. The proceeds from these sales of receivables are included within the change in receivables in the operating activities section of the Condensed Consolidated Statements of Cash Flows. The recorded loss on sale of receivables is $0.9 million and $0.6 million for the three months ended March 31, 2019 and 2018 , respectively, and is included in Other expense, net in the Condensed Consolidated Statements of Operations. The Company has no retained interest in the receivables sold under the program above; however, the Company does have collection and administrative responsibilities for the sold receivables. As of March 31, 2019 and December 31, 2018 , the Company had collected $97.5 million and $119.3 million , respectively, of cash from customers which was not yet remitted to the third-party financial institution. These amounts were included in Accounts payable in the Condensed Consolidated Balance Sheets. The Company has not recorded any servicing assets or liabilities as of March 31, 2019 or December 31, 2018, as the fair value of the servicing arrangement as well as the fees earned were not material to the financial statements. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 6. INVENTORIES March 31, 2019 December 31, 2018 (In millions) Raw materials and supplies $ 361.8 $ 390.8 Finished goods 517.0 473.0 LIFO reserve (24.6 ) (24.1 ) Total inventories $ 854.2 $ 839.7 Inventory is generally accounted for under the first-in, first-out (“FIFO”) method and a portion was accounted for under the last-in, first-out (“LIFO”) method. Approximately $53.5 million and $67.8 million of our inventory was accounted for under the LIFO method of accounting at March 31, 2019 and December 31, 2018 , respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 7. GOODWILL AND INTANGIBLE ASSETS As a result of the changes in organizational structure completed in the first quarter of 2019, the Company now has the following four operating segments, which are also its reporting units: Baked Goods, Beverages, Meal Solutions, and Snacks. See Note 16 for more information. The Company allocated goodwill and accumulated impairment loss balances as of January 1, 2019 between reporting units using a relative fair value allocation approach. The change was considered a triggering event indicating a test for goodwill impairment was required as of January 1, 2019. The Company performed the impairment test, which did not result in the identification of any impairment losses. Changes in the carrying amount of goodwill for the three months ended March 31, 2019 are as follows: Baked Goods Beverages Meal Solutions Snacks Total (In millions) Goodwill $ 642.2 $ 712.5 $ 851.2 $ 576.8 $ 2,782.7 Accumulated impairment losses (33.0 ) — (11.5 ) (576.8 ) (621.3 ) Balance at January 1, 2019 609.2 712.5 839.7 — 2,161.4 Foreign currency exchange adjustments — 1.0 1.5 — 2.5 Balance at March 31, 2019 $ 609.2 $ 713.5 $ 841.2 $ — $ 2,163.9 Indefinite Lived Intangible Assets The Company has $21.7 million and $21.4 million of trademarks with indefinite lives as of March 31, 2019 and December 31, 2018 , respectively. Finite Lived Intangible Assets The gross carrying amounts and accumulated amortization of intangible assets with finite lives as of March 31, 2019 and December 31, 2018 are as follows: March 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In millions) Intangible assets with finite lives: Customer-related $ 957.0 $ (403.9 ) $ 553.1 $ 954.3 $ (387.9 ) $ 566.4 Contractual agreements 3.0 (3.0 ) — 3.0 (3.0 ) — Trademarks 59.2 (28.8 ) 30.4 59.1 (27.6 ) 31.5 Formulas/recipes 33.7 (24.8 ) 8.9 33.7 (23.5 ) 10.2 Computer software 165.4 (89.0 ) 76.4 155.3 (84.6 ) 70.7 Total finite lived intangibles $ 1,218.3 $ (549.5 ) $ 668.8 $ 1,205.4 $ (526.6 ) $ 678.8 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. INCOME TAXES Income tax benefit was recorded at an effective rate of 31.1% for the three months ended March 31, 2019 compared to 22.3% for the three months ended March 31, 2018 . The change in the Company's effective tax rate for the three months ended March 31, 2019 compared to 2018 is primarily the result of an adjustment to the one-time transition tax liability due to the January 15, 2019 release of final regulations, the impact of a decrease in executive compensation that is non-deductible for tax purposes, and a change in the valuation allowance. In addition, the Company’s effective tax rate for the three months ended March 31, 2019 reflects a discrete benefit with a rate impact of approximately 1.3% attributable to the vesting and exercise of share-based awards. Our effective tax rate may change from period to period based on recurring and non-recurring factors including the jurisdictional mix of earnings, enacted tax legislation, state income taxes, settlement of tax audits, and the expiration of the statute of limitations in relation to unrecognized tax benefits. Management estimates that it is reasonably possible that the total amount of unrecognized tax benefits could decrease by as much as $4.0 million within the next 12 months, primarily as a result of the resolution of audits currently in progress and the lapsing of statutes of limitations. As much as $1.0 million of the $4.0 million could affect net income when settled. On January 15, 2019, the U.S. Treasury Department and Internal Revenue Service released final regulations regarding the one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings. During the three months ended March 31, 2019, the Company recorded a $1.4 million benefit to reflect the final regulations. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 9. LONG-TERM DEBT March 31, 2019 December 31, 2018 (In millions) Term Loan A $ 488.8 $ 488.8 Term Loan A-1 841.3 851.2 2022 Notes 375.9 375.9 2024 Notes 602.9 602.9 Finance leases 2.4 2.5 Total outstanding debt 2,311.3 2,321.3 Deferred financing costs (21.5 ) (22.7 ) Less current portion (4.6 ) (1.2 ) Total long-term debt $ 2,285.2 $ 2,297.4 The Company’s average interest rate on debt outstanding under its Credit Agreement for the three months ended March 31, 2019 was 4.34% . Including the impact of interest rate swap agreements in effect as of March 31, 2019 , the average rate decreased to 3.62% . Revolving Credit Facility — As of March 31, 2019 , $719.6 million of the aggregate commitment of $750.0 million of the Revolving Credit Facility was available. Under the Credit Agreement, the Revolving Credit Facility matures on February 1, 2023. In addition, as of March 31, 2019, there were $30.4 million in letters of credit under the Revolving Credit Facility that were issued but undrawn, which have been included as a reduction to the calculation of available credit. Fair Value - At March 31, 2019 , the aggregate fair value of the Company's total debt was $2,337.5 million and its carrying value was $2,308.9 million . At December 31, 2018 , the aggregate fair value of the Company's total debt was $2,311.3 million and its carrying value was $2,318.8 million . The fair values of Term Loan A and Term Loan A-1 were estimated using present value techniques and market-based interest rates and credit spreads. The fair values of the Company's 2022 Notes and 2024 Notes were estimated based on quoted market prices for similar instruments due to their infrequent trading volume. Accordingly, the fair value of the Company's debt is classified as Level 2 within the valuation hierarchy. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 10. EARNINGS PER SHARE The following table summarizes the effect of the share-based compensation awards on the weighted average number of shares outstanding used in calculating diluted loss per share: Three Months Ended 2019 2018 (In millions, except per share data) Net loss $ (27.3 ) $ (34.1 ) Weighted average common shares outstanding 56.1 56.5 Assumed exercise/vesting of equity awards (1) — — Weighted average diluted common shares outstanding 56.1 56.5 Net loss per basic share $ (0.49 ) $ (0.60 ) Net loss per diluted share $ (0.49 ) $ (0.60 ) (1) Incremental shares from equity awards are computed using the treasury stock method. For the three months ended March 31, 2019 and 2018 , the weighted average common shares outstanding is the same for both the computations of basic and diluted shares because the Company had a net loss for the period. Equity awards excluded from the Company's computation of diluted earnings per share because they were anti-dilutive, were 1.7 million and 2.1 million for the three months ended March 31, 2019 and 2018 , respectively. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 11. STOCK-BASED COMPENSATION The Board of Directors adopted, and the Company’s stockholders approved, the “TreeHouse Foods, Inc. Equity and Incentive Plan” (the “Plan”). Under the Plan, the Compensation Committee may grant awards of various types of compensation, including stock options, restricted stock, restricted stock units, performance shares, performance units, other types of stock-based awards, and other cash-based compensation. On April 25, 2019, the Plan was amended and restated to increase the number of shares available for issuance under the Plan by 1.5 million shares, effective February 27, 2019. The maximum number of shares available to be awarded under the Plan is approximately 17.5 million , of which approximately 4.6 million remained available at March 31, 2019 . Loss before income taxes for the three months ended March 31, 2019 and 2018 includes stock-based compensation expense of $6.1 million and $16.3 million , respectively. The tax benefit recognized related to the compensation cost of these share-based awards was approximately $1.5 million and $4.0 million for the three months ended March 31, 2019 and 2018, respectively. In the first quarter of 2018, the Company entered into an amended employment agreement with our former Chief Executive Officer. The amended plan resulted in the modification of his outstanding equity awards by accelerating the vesting dates, changing outstanding performance units to vest at target, and extending the exercisability of options outstanding. Modification of the existing awards resulted in a charge of $10.0 million in the three months ended March 31, 2018. The impact of this modification on expense recognized for stock options, restricted stock units, and performance units was $1.2 million , $3.8 million , and $5.0 million , respectively. Stock Options — The following table summarizes stock option activity during the three months ended March 31, 2019 . Stock options generally vest in approximately three equal installments on each of the first three anniversaries of the grant date and expire ten years from the grant date. Employee Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (yrs) Aggregate Intrinsic Value (In thousands) (In millions) Outstanding, at December 31, 2018 1,720 $ 75.24 4.8 $ 1.1 Forfeited (8 ) 89.54 Exercised (4 ) 58.27 Expired (74 ) 77.45 Outstanding, at March 31, 2019 1,634 75.07 4.7 4.5 Vested/expected to vest, at March 31, 2019 1,619 74.99 4.6 4.4 Exercisable, at March 31, 2019 1,506 73.95 4.4 4.4 Three Months Ended 2019 2018 (In millions) Compensation expense $ 0.9 $ 2.7 Intrinsic value of stock options exercised — 1.5 Future compensation costs related to unvested options totaled $1.8 million at March 31, 2019 and will be recognized over the remaining vesting period of the grants, which averages 0.9 years . Restricted Stock Units — Employee restricted stock unit awards generally vest based on the passage of time. These awards generally vest in approximately three equal installments on each of the first three anniversaries of the grant date. Director restricted stock units generally vest on the first anniversary of the grant date. Certain directors have deferred receipt of their awards until either their departure from the Board of Directors or a specified date. As of March 31, 2019 , director restricted stock units that have been earned and deferred totaled approximately 118,000 . The following table summarizes the restricted stock unit activity during the three months ended March 31, 2019 : Employee Restricted Stock Units Weighted Average Grant Date Fair Value Director Restricted Stock Units Weighted Average Grant Date Fair Value (In thousands) (In thousands) Outstanding, at December 31, 2018 685 $ 52.20 129 $ 53.75 Granted 327 64.39 — — Vested (231 ) 55.58 (9 ) 38.27 Forfeited (23 ) 47.49 — — Outstanding, at March 31, 2019 758 56.59 120 54.99 Three Months Ended 2019 2018 (In millions) Compensation expense $ 4.6 $ 8.3 Fair value of vested restricted stock units 15.2 4.3 Tax benefit recognized from vested restricted stock units 2.6 1.0 Future compensation costs related to restricted stock units are approximately $32.1 million as of March 31, 2019 and will be recognized on a weighted average basis over the next 2.4 years . The grant date fair value of the awards is equal to the Company’s closing stock price on the grant date. Performance Units — Performance unit awards are granted to certain members of management. These awards contain service and performance conditions. For each of the three performance periods, one-third of the units will accrue, multiplied by a predefined percentage generally between 0% and 200% , depending on the achievement of certain operating performance measures. Additionally, for the cumulative performance period, a number of units will accrue, equal to the number of units granted multiplied by a predefined percentage generally between 0% and 200% , depending on the achievement of certain operating performance measures, less any units previously accrued. Accrued units will be converted to stock or cash, at the discretion of the Compensation Committee, generally, on the third anniversary of the grant date. The Company intends to settle these awards in stock and has the shares available to do so. The following table summarizes the performance unit activity during the three months ended March 31, 2019 : Performance Units Weighted Average Grant Date Fair Value (In thousands) Unvested, at December 31, 2018 176 $ 71.49 Granted 353 62.07 Forfeited (4 ) 89.37 Unvested, at March 31, 2019 525 65.04 Three Months Ended 2019 2018 (In millions) Compensation expense $ 0.6 $ 5.3 Future compensation costs related to the performance units are estimated to be approximately $23.3 million as of March 31, 2019 and are expected to be recognized over the next 2.8 years . The grant date fair value of the awards is equal to the Company’s closing stock price on the date of grant. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 12. ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss consists of the following components, all of which are net of tax: Foreign Currency Translation (1) Unrecognized Pension and Postretirement Benefits (1) Accumulated Other Comprehensive Loss (In millions) Balance at December 31, 2017 $ (57.2 ) $ (4.3 ) $ (61.5 ) Other comprehensive loss (10.1 ) — (10.1 ) Reclassifications from accumulated other comprehensive loss (2) — 0.2 0.2 Reclassifications from accumulated other comprehensive loss - Adoption of ASU 2018-02 — (1.1 ) (1.1 ) Other comprehensive loss (10.1 ) (0.9 ) (11.0 ) Balance at March 31, 2018 $ (67.3 ) $ (5.2 ) $ (72.5 ) Balance at December 31, 2018 $ (91.7 ) $ (5.4 ) $ (97.1 ) Other comprehensive income 6.8 — 6.8 Reclassifications from accumulated other comprehensive income (2) — 0.1 0.1 Other comprehensive income 6.8 0.1 6.9 Balance at March 31, 2019 $ (84.9 ) $ (5.3 ) $ (90.2 ) (1) The tax impact of the foreign currency translation adjustment and the unrecognized pension and postretirement benefits reclassification was insignificant for the three months ended March 31, 2019 and 2018. (2) Refer to Note 13 for additional information regarding these reclassifications. |
Employee Retirement and Postret
Employee Retirement and Postretirement Benefits | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Retirement and Postretirement Benefits | 13. EMPLOYEE RETIREMENT AND POSTRETIREMENT BENEFITS Pension, Profit Sharing, and Postretirement Benefits — Certain employees and retirees participate in pension and other postretirement benefit plans. Employee benefit plan obligations and expenses included in the Condensed Consolidated Financial Statements are determined based on plan assumptions, employee demographic data, including years of service and compensation, benefits and claims paid, and employer contributions. Components of net periodic pension benefit are as follows: Three Months Ended 2019 2018 (In millions) Service cost $ 0.5 $ 0.6 Interest cost 3.2 2.9 Expected return on plan assets (3.8 ) (4.0 ) Amortization of unrecognized prior service cost — — Amortization of unrecognized net loss 0.1 0.2 Net periodic pension benefit $ — $ (0.3 ) Components of net periodic postretirement expense are as follows: Three Months Ended 2019 2018 (In millions) Interest cost $ 0.3 $ 0.3 Net periodic postretirement cost $ 0.3 $ 0.3 The service cost components of net periodic pension and postretirement costs were recorded in Cost of sales and the other components were recorded in Other expense, net of the Condensed Consolidated Statements of Operations. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. COMMITMENTS AND CONTINGENCIES Litigation, Investigations, and Audits - On November 16, 2016, a purported TreeHouse shareholder filed a class action captioned Tarara v. TreeHouse Foods, Inc., et al. , Case No. 1:16-cv-10632, in the United States District Court for the Northern District of Illinois against TreeHouse and certain of its officers. The complaint, amended on March 24, 2017, is purportedly brought on behalf of all purchasers of TreeHouse common stock from January 20, 2016 through and including November 2, 2016. It asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder and seeks, among other things, damages and costs and expenses. On December 22, 2016, another purported TreeHouse shareholder filed an action captioned Wells v. Reed, et al. , Case No. 2016-CH-16359, in the Circuit Court of Cook County, Illinois, against TreeHouse and certain of its officers. This complaint, purportedly brought derivatively on behalf of TreeHouse, asserts state law claims against certain officers for breach of fiduciary duty, unjust enrichment, and corporate waste. On February 7, 2017, another purported TreeHouse shareholder filed an action captioned Lavin v. Reed , Case No. 17-cv-01014, in the Northern District of Illinois, against TreeHouse and certain of its officers. This complaint is also purportedly brought derivatively on behalf of TreeHouse, and it asserts state law claims against certain officers for breach of fiduciary duty, unjust enrichment, abuse of control, gross mismanagement, and corporate waste. Finally, on February 8, 2019, another purported TreeHouse shareholder filed an action captioned Bartelt v. Reed, et al. , Case No. 1:19-cv-00835, in the United States District Court for the Northern District of Illinois. Like Wells and Lavin , this complaint is purportedly brought derivatively on behalf of TreeHouse and asserts state law claims against certain officers for breach of fiduciary duty, unjust enrichment, abuse of control, gross mismanagement, and corporate waste, in addition to asserting violations of Section 14 of the Securities Exchange Act of 1934. All four complaints make substantially similar allegations (though the amended complaint in Tarara now contains additional detail). Essentially, the complaints allege that TreeHouse, under the authority and control of the individual defendants: (i) made certain false and misleading statements regarding the Company’s business, operations, and future prospects; and (ii) failed to disclose that (a) the Company’s private label business was underperforming; (b) the Company’s Flagstone business was underperforming; (c) the Company’s acquisition strategy was underperforming; (d) the Company had overstated its full-year 2016 guidance; and (e) TreeHouse’s statements lacked reasonable basis. The Bartelt action also includes substantially similar allegations concerning events in 2017. The complaints allege that these actions artificially inflated the market price of TreeHouse common stock during the class period, thus purportedly harming investors. We believe that these claims are without merit and intend to defend against them vigorously. Since its initial docketing, the Tarara matter has been re-captioned as Public Employees’ Retirement Systems of Mississippi v. TreeHouse Foods, Inc., et al. , in accordance with the Court’s order appointing Public Employees’ Retirement Systems of Mississippi as the lead plaintiff. On May 26, 2017, the Public Employees’ defendants filed a motion to dismiss, which the court denied on February 12, 2018. On April 12, 2018, the Public Employees’ defendants filed their answer to the amended complaint. On April 23, 2018, the parties filed a joint status report with the Court, which set forth a proposed discovery and briefing schedule for the Court’s consideration. On July 13, 2018, lead plaintiff filed a motion to certify the class, and defendants filed their response in opposition to the motion to certify the class on October 8, 2018. On November 12, 2018, the parties filed an agreed motion to stay proceedings to allow them to explore mediation. The motion was granted on November 19. The parties thereafter engaged in mediation but failed to resolve the dispute. On March 29, 2019, the parties resumed litigation by filing an agreed motion for extension of time, which was granted on April 9. Pursuant to that schedule, lead plaintiff must file its reply class certification brief by May 17, 2019, and document production must be substantially completed by August 2. Due to the similarity of the complaints, the parties in Wells and Lavin entered stipulations deferring the litigation until the earlier of (i) the court in Public Employees’ entering an order resolving defendants’ anticipated motion to dismiss therein or (ii) plaintiffs’ counsel receiving notification of a settlement of Public Employees’ or until otherwise agreed to by the parties. On September 27, 2018, the parties in Wells and Lavin filed joint motions for entry of agreed orders further deferring the matters in light of the Public Employees’ Court’s denial of the motion to dismiss in February 2018. The Wells and Lavin Courts entered the agreed orders further deferring the matters on September 27, 2018 and October 10, 2018, respectively. In Wells , the next status conference is set for July 8, 2019. In Bartelt , the parties have agreed to move to consolidate the matter with Lavin such that the Bartelt complaint will be subject to the same deferral order already in place. There is no set status date in Lavin at this time. The Company is also party to matters challenging its wage and hour practices. These matters include a number of class actions consolidated under the caption Negrete v. Ralcorp Holdings, Inc., et al, pending in the U.S. District Court for the Central District of California, in which the plaintiffs allege a pattern of violations of California and/or federal law at several current and former Company manufacturing facilities across the State of California. While the Company cannot predict with certainty the results of this or any other legal proceeding, it does not expect this matter to have a material adverse effect on its financial condition, results of operations, or business. In addition, the Company is party in the ordinary course of business to certain claims, litigation, audits, and investigations. The Company will record an accrual for a loss contingency when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company believes it has established adequate accruals for liabilities that are probable and reasonably estimable that may be incurred in connection with any such currently pending or threatened matter, none of which are significant. In the Company’s opinion, the settlement of any such currently pending or threatened matter is not expected to have a material impact on the Company’s financial position, results of operations, or cash flows. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 15. DERIVATIVE INSTRUMENTS The Company is exposed to certain risks relating to its ongoing business operations. The primary risks managed by derivative instruments include interest rate risk, foreign currency risk, and commodity price risk. Derivative contracts are entered into for periods consistent with the related underlying exposure and do not constitute positions independent of those exposures. The Company does not enter into derivative instruments for trading or speculative purposes. Interest Rate Risk - The Company manages its exposure to changes in interest rates by optimizing the use of variable-rate and fixed-rate debt and by utilizing interest rate swaps to hedge our exposure to changes in interest rates, to reduce the volatility of our financing costs, and to achieve a desired proportion of fixed versus floating-rate debt, based on current and projected market conditions. As of March 31, 2019 , the Company had entered into $1.8 billion of long-term interest rate swap agreements to lock into a fixed LIBOR interest rate base. Under the terms of the agreements, $1.8 billion in variable-rate debt was swapped for a weighted average fixed interest rate base of approximately 1.54% through 2019; 2.68% from 2019 through 2020 ; and 2.91% from 2021 through 2025 . These instruments are not accounted for under hedge accounting and the changes in their fair value are recorded in the Condensed Consolidated Statements of Operations. Foreign Currency Risk - Due to the Company’s foreign operations, it is exposed to foreign currency risk. The Company enters into foreign currency contracts to manage the risk associated with foreign currency cash flows. The Company’s objective in using foreign currency contracts is to establish a fixed foreign currency exchange rate for the net cash flow requirements for purchases that are denominated in U.S. dollars. These contracts do not qualify for hedge accounting and changes in their fair value are recorded in the Condensed Consolidated Statements of Operations. As of March 31, 2019 , the Company had $6.3 million of U.S. dollar foreign currency contracts outstanding, expiring throughout 2019. Commodity Risk - Certain commodities the Company uses in the production and distribution of our products are exposed to market price risk. The Company utilizes derivative contracts to manage this risk. The majority of commodity forward contracts are not derivatives, and those that are generally qualify for the normal purchases and normal sales scope exception under the guidance for derivative instruments and hedging activities and, therefore, are not subject to its provisions. For derivative commodity contracts that do not qualify for the normal purchases and normal sales scope exception, the Company records their fair value on the Condensed Consolidated Balance Sheets, with changes in value being recorded in the Condensed Consolidated Statements of Operations. The Company’s derivative commodity contracts may include contracts for diesel, oil, plastics, natural gas, electricity, resin, and other commodity contracts that do not meet the requirements for the normal purchases and normal sales scope exception. Diesel contracts are used to manage the Company’s risk associated with the underlying cost of diesel fuel used to deliver products. Contracts for oil, plastics, and resin are used to manage the Company’s risk associated with the underlying commodity cost of a significant component used in packaging materials. Contracts for natural gas and electricity are used to manage the Company’s risk associated with the utility costs of its manufacturing facilities, and commodity contracts are used to manage the price risk associated with raw material costs. As of March 31, 2019 , the Company had outstanding contracts for the purchase of 0.1 million megawatts of electricity, expiring throughout 2019, and 2020 ; 12.7 million gallons of diesel, expiring throughout 2019 ; 2.1 million dekatherms of natural gas, expiring throughout 2019 ; and 15.5 million pounds of resin, expiring throughout 2019 . The following table identifies the fair value of each derivative instrument: Fair Value March 31, 2019 December 31, 2018 Asset Derivatives (In millions) Commodity contracts $ 1.2 $ 0.6 Foreign currency contracts 0.3 1.5 Interest rate swap agreements 7.1 10.1 $ 8.6 $ 12.2 Liability Derivatives Commodity contracts $ 0.7 $ 1.8 Foreign currency contracts 0.1 — Interest rate swap agreements 32.3 19.0 $ 33.1 $ 20.8 As of March 31, 2019 and December 31, 2018, asset derivatives are included within Other assets, net and liability derivatives are included within Accrued expenses in the Condensed Consolidated Balance Sheets. The fair values of the commodity contracts, foreign currency contracts, and interest rate swap agreements are determined using Level 2 inputs. Level 2 inputs are inputs other than quoted market prices that are observable for an asset or liability, either directly or indirectly. The fair values of the commodity contracts, foreign currency contracts, and interest rate swap agreements are based on an analysis comparing the contract rates to the market rates at the balance sheet date. We recorded the following gains and losses on our derivative contracts in the Condensed Consolidated Statements of Operations: Location of Gain (Loss) Three Months Ended Recognized in Net Loss 2019 2018 (In millions) Mark-to-market unrealized gain (loss) Commodity contracts Other expense, net $ 1.7 $ (1.0 ) Foreign currency contracts Other expense, net (1.3 ) 1.8 Interest rate swap agreements Other expense, net (16.3 ) (6.4 ) Total unrealized loss (15.9 ) (5.6 ) Realized gain Commodity contracts Manufacturing related to Cost of sales and transportation related to Selling and distribution 0.5 2.4 Foreign currency contracts Cost of sales 0.3 0.6 Interest rate swap agreements Interest expense 2.4 0.8 Total realized gain 3.2 3.8 Total loss $ (12.7 ) $ (1.8 ) |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 16. SEGMENT INFORMATION On January 1, 2019, the Company changed how it manages its business, allocates resources, and goes to market, which resulted in modifications to its organizational and segment structure. As a result, the Company consolidated its Condiments and Meals segments into one segment called Meal Solutions. Additionally, the Bars and Ready-to-eat cereal categories moved from the Company's Snacks and Meals segments, respectively, into the Baked Goods segment. All prior period information has been recast to reflect this change in reportable segments. The Company manages operations on a company-wide basis, thereby making determinations as to the allocation of resources in total rather than on a segment-level basis. The Company has designated reportable segments based on how management views its business. The Company does not segregate assets between segments for internal reporting. Therefore, asset-related information has not been presented. The reportable segments, as presented below, are consistent with the manner in which the Company reports its results to the Chief Operating Decision Maker. As of the first quarter of 2019, our segments are as follows: Baked Goods – Our Baked Goods segment sells candy; cookies; crackers; in-store bakery products; pita chips; pretzels; refrigerated dough; retail griddle waffles, pancakes, and French toast; bars; and ready-to-eat cereal. Beverages – Our Beverages segment sells broths; liquid non-dairy creamer; non-dairy powdered creamers; powdered drinks; single serve hot beverages; specialty teas, and sweeteners. Meal Solutions – Our Meal Solutions segment sells aseptic cheese and pudding products; jams, preserves, and jellies; mayonnaise; Mexican, barbeque, and other sauces; pickles and related products; refrigerated and shelf stable dressings and sauces; table and flavored syrups; baking and mix powders; powdered soups and gravies; macaroni and cheese; pasta; hot cereals; and skillet dinners. Snacks – Our Snacks segment sells snack nuts; trail mixes; dried fruit; and other wholesome snacks. The Company evaluates the performance of its segments based on net sales dollars and direct operating income. Direct operating income is defined as gross profit less freight out, sales commissions, and direct selling, general, and administrative expenses. The amounts in the following tables are obtained from reports used by senior management and do not include income taxes. Other expenses not allocated include unallocated selling, general, and administrative expenses, unallocated costs of sales, and unallocated corporate expenses (amortization expense and other operating expense). The accounting policies of the Company’s segments are the same as those described in the summary of significant accounting policies set forth in Note 1 to the Consolidated Financial Statements contained in our Annual Report on Form 10-K for the year ended December 31, 2018 . Financial information relating to the Company’s reportable segments, revised to reflect the new segment structure, is as follows: Three Months Ended 2019 2018 (In millions) Net sales to external customers: Baked Goods $ 422.7 $ 455.4 Beverages 237.2 249.1 Meal Solutions 464.9 523.3 Snacks 176.3 253.4 Total $ 1,301.1 $ 1,481.2 Direct operating income: Baked Goods $ 44.7 $ 28.0 Beverages 43.9 39.4 Meal Solutions 46.9 56.2 Snacks (13.8 ) 7.6 Total 121.7 131.2 Unallocated selling, general, and administrative expenses (58.5 ) (81.3 ) Unallocated cost of sales (1) (8.1 ) (7.5 ) Unallocated corporate expense and other (1) (56.0 ) (51.1 ) Operating loss $ (0.9 ) $ (8.7 ) (1) Includes charges related to restructuring programs and other costs managed at corporate. Disaggregation of Revenue Segment revenue disaggregated by product category groups, revised to reflect the new segment structure, is as follows: Three Months Ended 2019 2018 (In millions) Retail bakery $ 159.9 $ 177.1 Baked products 262.8 278.3 Total Baked Goods 422.7 455.4 Beverages 165.8 171.4 Beverage enhancers 71.4 77.7 Total Beverages 237.2 249.1 Dressings and sauces 225.9 246.2 Pickles 60.2 69.0 Pasta and dry dinners 113.4 142.0 Cereals and other meals 65.4 66.1 Total Meal Solutions 464.9 523.3 Snack nuts 149.9 202.4 Trail mix 26.4 51.0 Total Snacks 176.3 253.4 Total net sales $ 1,301.1 $ 1,481.2 |
Guarantor and Non-Guarantor Fin
Guarantor and Non-Guarantor Financial Information | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Guarantor and Non-Guarantor Financial Information | 17. GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION The 2022 Notes and 2024 Notes are fully and unconditionally, as well as jointly and severally, guaranteed by our directly and indirectly owned domestic subsidiaries, which are collectively known as the “Guarantor Subsidiaries”. Bay Valley Foods, LLC, which is a 100% owned direct subsidiary, maintains 100% direct and indirect ownership of the following Guarantor Subsidiaries: Sturm Foods, Inc.; S.T. Specialty Foods, Inc.; Associated Brands, Inc.; Cains Foods, Inc.; Cains Foods L.P.; Cains GP, LLC; Flagstone Foods, Inc., Protenergy Holdings, Inc.; Protenergy Natural Foods, Inc.; TreeHouse Private Brands, Inc. (formerly Ralcorp Holdings, Inc.); American Italian Pasta Company.; Nutcracker Brands, Inc.; Linette Quality Chocolates, Inc.; Ralcorp Frozen Bakery Products, Inc.; Cottage Bakery, Inc.; The Carriage House Companies, Inc. and certain other domestic subsidiaries that may become guarantors in the future. The guarantees of the Guarantor Subsidiaries are subject to release in limited circumstances, only upon the occurrence of certain customary conditions. There are no significant restrictions on the ability of the parent company or any guarantor to obtain funds from its subsidiaries by dividend or loan. The following condensed supplemental consolidating financial information presents the results of operations, financial position, and cash flows of the parent company, its Guarantor Subsidiaries, its non-guarantor subsidiaries, and the eliminations necessary to arrive at the information for the Company on a consolidated basis as of March 31, 2019 and December 31, 2018 , and for the three months ended March 31, 2019 and 2018 . The equity method has been used with respect to investments in subsidiaries. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions. Condensed Supplemental Consolidating Balance Sheet March 31, 2019 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 40.8 $ — $ 38.2 $ — $ 79.0 Accounts receivable, net 0.7 320.7 45.9 — 367.3 Inventories — 748.8 105.4 — 854.2 Prepaid expenses and other current assets 99.3 60.9 24.7 (106.1 ) 78.8 Total current assets 140.8 1,130.4 214.2 (106.1 ) 1,379.3 Property, plant, and equipment, net 41.8 1,074.1 144.1 — 1,260.0 Operating lease right-of-use assets 38.1 160.8 29.9 — 228.8 Goodwill — 2,046.7 117.2 — 2,163.9 Investment in subsidiaries 5,206.9 484.1 — (5,691.0 ) — Deferred income taxes 34.0 — — (34.0 ) — Intangible and other assets, net 90.0 560.6 82.4 — 733.0 Total assets $ 5,551.6 $ 5,456.7 $ 587.8 $ (5,831.1 ) $ 5,765.0 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 37.5 $ 495.3 $ 58.3 $ — $ 591.1 Accrued expenses 65.4 260.5 25.8 (106.1 ) 245.6 Current portion of long-term debt 4.1 0.4 0.1 — 4.6 Total current liabilities 107.0 756.2 84.2 (106.1 ) 841.3 Long-term debt 2,284.2 0.4 0.6 — 2,285.2 Operating lease liabilities 43.6 135.5 25.5 — 204.6 Deferred income taxes — 172.1 17.1 (34.0 ) 155.2 Other long-term liabilities 9.0 142.0 4.5 — 155.5 Intercompany accounts (receivable) payable, net 984.6 (956.4 ) (28.2 ) — — Stockholders’ equity 2,123.2 5,206.9 484.1 (5,691.0 ) 2,123.2 Total liabilities and stockholders’ equity $ 5,551.6 $ 5,456.7 $ 587.8 $ (5,831.1 ) $ 5,765.0 Condensed Supplemental Consolidating Balance Sheet December 31, 2018 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 77.9 $ — $ 86.4 $ — $ 164.3 Accounts receivable, net 1.0 314.1 36.2 — 351.3 Inventories — 746.7 93.0 — 839.7 Prepaid expenses and other current assets 80.9 60.4 16.8 (96.3 ) 61.8 Total current assets 159.8 1,121.2 232.4 (96.3 ) 1,417.1 Property, plant, and equipment, net 42.8 1,087.8 143.8 — 1,274.4 Goodwill — 2,046.7 114.7 — 2,161.4 Investment in subsidiaries 5,152.4 559.3 — (5,711.7 ) — Deferred income taxes 34.2 — — (34.2 ) — Intangible and other assets, net 86.6 577.0 82.8 — 746.4 Total assets $ 5,475.8 $ 5,392.0 $ 573.7 $ (5,842.2 ) $ 5,599.3 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 23.9 $ 508.3 $ 45.7 $ — $ 577.9 Accrued expenses 71.8 261.6 19.0 (96.3 ) 256.1 Current portion of long-term debt 0.6 0.5 0.1 — 1.2 Total current liabilities 96.3 770.4 64.8 (96.3 ) 835.2 Long-term debt 2,296.2 0.6 0.6 — 2,297.4 Deferred income taxes — 171.9 16.5 (34.2 ) 154.2 Other long-term liabilities 17.7 147.8 5.1 — 170.6 Intercompany accounts (receivable) payable, net 923.7 (851.1 ) (72.6 ) — — Stockholders’ equity 2,141.9 5,152.4 559.3 (5,711.7 ) 2,141.9 Total liabilities and stockholders’ equity $ 5,475.8 $ 5,392.0 $ 573.7 $ (5,842.2 ) $ 5,599.3 Condensed Supplemental Consolidating Statement of Operations Three Months Ended March 31, 2019 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 1,245.7 $ 152.7 $ (97.3 ) $ 1,301.1 Cost of sales — 1,058.3 145.5 (97.3 ) 1,106.5 Gross profit — 187.4 7.2 — 194.6 Selling, general, and administrative expense 34.7 102.0 8.4 — — 145.1 Amortization expense 3.4 16.0 2.2 — 21.6 Other operating expense, net 19.4 9.1 0.3 — 28.8 Operating income (loss) (57.5 ) 60.3 (3.7 ) — (0.9 ) Interest expense 26.1 — 0.8 — 26.9 (Gain) loss on foreign currency exchange — (0.4 ) — — (0.4 ) Other expense, net 13.6 0.2 (1.6 ) — 12.2 Loss before income taxes (97.2 ) 60.5 (2.9 ) — (39.6 ) Income tax benefit (22.3 ) 9.7 0.3 — (12.3 ) Equity in net income (loss) of subsidiaries 47.6 (3.2 ) — (44.4 ) — Net loss $ (27.3 ) $ 47.6 $ (3.2 ) $ (44.4 ) $ (27.3 ) Condensed Supplemental Consolidating Statement of Operations Three Months Ended March 31, 2018 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 1,408.8 $ 177.2 $ (104.8 ) $ 1,481.2 Cost of sales — 1,194.3 159.8 (104.8 ) 1,249.3 Gross profit — 214.5 17.4 — 231.9 Selling, general, and administrative expense 44.6 136.0 8.9 — 189.5 Amortization expense 3.0 16.9 2.3 — 22.2 Other operating expense, net 18.8 10.0 0.1 — 28.9 Operating income (loss) (66.4 ) 51.6 6.1 — (8.7 ) Interest expense 29.0 — 1.4 (1.9 ) 28.5 (Gain) loss on foreign currency exchange (0.4 ) 2.1 0.8 — 2.5 Other expense, net 5.3 (0.2 ) (2.8 ) 1.9 4.2 Loss before income taxes (100.3 ) 49.7 6.7 — (43.9 ) Income tax benefit (20.2 ) 9.2 1.2 — (9.8 ) Equity in net income (loss) of subsidiaries 46.0 5.5 — (51.5 ) — Net loss $ (34.1 ) $ 46.0 $ 5.5 $ (51.5 ) $ (34.1 ) Condensed Supplemental Consolidating Statement of Comprehensive Income (Loss) Three Months Ended March 31, 2019 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net loss $ (27.3 ) $ 47.6 $ (3.2 ) $ (44.4 ) $ (27.3 ) Other comprehensive income (loss): Foreign currency translation adjustments — — 6.8 — 6.8 Pension and postretirement reclassification adjustment, net of tax — 0.1 — — 0.1 Other comprehensive income (loss) — 0.1 6.8 — 6.9 Equity in other comprehensive (loss) income of subsidiaries 6.9 6.8 — (13.7 ) — Comprehensive loss $ (20.4 ) $ 54.5 $ 3.6 $ (58.1 ) $ (20.4 ) Condensed Supplemental Consolidating Statement of Comprehensive Income (Loss) Three Months Ended March 31, 2018 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net loss $ (34.1 ) $ 46.0 $ 5.5 $ (51.5 ) $ (34.1 ) Other comprehensive income (loss): Foreign currency translation adjustments — — (10.1 ) — (10.1 ) Pension and postretirement reclassification adjustment, net of tax — 0.2 — — 0.2 Adoption of ASU 2018-02 reclassification to retained earnings — (1.1 ) — — (1.1 ) Other comprehensive income (loss) — (0.9 ) (10.1 ) — (11.0 ) Equity in other comprehensive income (loss) of subsidiaries (9.9 ) (10.1 ) — 20.0 — Comprehensive loss $ (44.0 ) $ 35.0 $ (4.6 ) $ (31.5 ) $ (45.1 ) Condensed Supplemental Consolidating Statement of Cash Flows Three Months Ended March 31, 2019 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ (50.0 ) $ 61.9 $ (5.3 ) $ (44.5 ) $ (37.9 ) Cash flows from investing activities: Additions to property, plant, and equipment — (27.7 ) (2.2 ) — (29.9 ) Additions to intangible assets (6.4 ) (0.1 ) — — (6.5 ) Intercompany transfer (21.5 ) (11.8 ) — 33.3 — Other — — (0.1 ) — (0.1 ) Net cash (used in) provided by investing activities (27.9 ) (39.6 ) (2.3 ) 33.3 (36.5 ) Cash flows from financing activities: Net (repayment) borrowing of debt (10.0 ) (0.4 ) — — (10.4 ) Intercompany transfer 55.2 (21.9 ) (44.5 ) 11.2 — Receipts related to stock-based award activities 0.2 — — — 0.2 Payments related to stock-based award activities (4.6 ) — — — (4.6 ) Net cash (used in) provided by financing activities 40.8 (22.3 ) (44.5 ) 11.2 (14.8 ) Effect of exchange rate changes on cash and cash equivalents — — 3.9 — 3.9 Decrease (increase) in cash and cash equivalents (37.1 ) — (48.2 ) — (85.3 ) Cash and cash equivalents, beginning of period 77.9 — 86.4 — 164.3 Cash and cash equivalents, end of period $ 40.8 $ — $ 38.2 $ — $ 79.0 Condensed Supplemental Consolidating Statement of Cash Flows Three Months Ended March 31, 2018 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ 41.3 $ 41.2 $ 26.5 $ (51.2 ) $ 57.8 Cash flows from investing activities: Additions to property, plant, and equipment (0.9 ) (32.3 ) (5.3 ) — (38.5 ) Additions to intangible assets (2.5 ) (0.4 ) — — (2.9 ) Intercompany transfer (42.8 ) (43.3 ) 0.5 85.6 — Other — — (0.3 ) — (0.3 ) Net cash (used in) provided by investing activities (46.2 ) (76.0 ) (5.1 ) 85.6 (41.7 ) Cash flows from financing activities: Net borrowing (repayment) of debt (2.4 ) (1.4 ) — — (3.8 ) Intercompany transfer 10.8 36.2 (12.6 ) (34.4 ) — Repurchases of common stock (17.1 ) — — — (17.1 ) Receipts related to stock-based award activities 1.9 — — — 1.9 Payments related to stock-based award activities (1.1 ) — — — (1.1 ) Net cash (used in) provided by financing activities (7.9 ) 34.8 (12.6 ) (34.4 ) (20.1 ) Effect of exchange rate changes on cash and cash equivalents — — (0.3 ) — (0.3 ) Increase (decrease) in cash and cash equivalents (12.8 ) — 8.5 — (4.3 ) Cash and cash equivalents, beginning of period 83.2 0.2 49.4 — 132.8 Cash and cash equivalents, end of period $ 70.4 $ 0.2 $ 57.9 $ — $ 128.5 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 18. SUBSEQUENT EVENTS Ready-to-eat Cereal Divestiture On May 2, 2019, the Company announced that it had entered into a definitive agreement to sell its Ready-to-eat cereal business. The business produces private label ready-to-eat cereal at plants located in Battle Creek, Michigan; Lancaster, Ohio, and Sparks, Nevada for the Baked Goods segment. The transaction is subject to customary closing conditions and is expected to close in the third quarter of 2019. Minneapolis Plant Closure On May 2, 2019, the Company announced the closure of its Minneapolis, Minnesota Snack nuts and Trail mix plant by the end of the third quarter of 2019. Costs associated with the facility closure are expected to be approximately $13 million , of which approximately $4 million is expected to be in cash. Components of the charges include non-cash asset write-offs of approximately $9 million , employee-related costs of approximately $1 million , and other closure costs of approximately $3 million . |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Adopted In February 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-02, Leases , to increase transparency and comparability by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The main difference between existing GAAP and this ASU is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under existing GAAP. The standard requires that entities apply the effects of these changes using a modified retrospective approach, which includes a number of optional practical expedients. In July 2018, the FASB issued ASU No. 2018-11, Leases (842), Targeted Improvements, which provides an additional transition election to not restate comparative periods for the effects of applying the new standard. This transition election permits entities to apply ASU No. 2016-02 on the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings. These ASU's are effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company adopted these ASUs as of January 1, 2019 under the modified retrospective transition method prescribed by ASU 2018-11. Under this transition method, financial results reported in periods prior to the first quarter of 2019 are unchanged. The adoption of these ASUs resulted in the recognition of approximately $252.5 million of right-of-use assets and lease liabilities as of January 1, 2019. Also as a result of adoption, the Company reclassified $17.2 million of liabilities and $0.6 million of assets on its Condensed Consolidated Balance Sheet as of January 1, 2019 against the operating lease right-of-use asset. The adoption of these ASUs did not result in a cumulative-effect adjustment to the opening balance of retained earnings. In addition, the Company elected the package of practical expedients permitted by the transition guidance. The adoption of these ASU’s did not have an impact on the Company’s Condensed Consolidated Statements of Operations or Cash Flows. Refer to Note 4 for additional information regarding the Company's leases. Not yet adopted The Company does not anticipate a material impact upon adoption from any accounting standards issued but not yet adopted. |
Restructuring Programs (Tables)
Restructuring Programs (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |
Aggregate Expenses Incurred Associated with Facility Closure | Below is a summary of costs by line item for the Restructuring Programs: Three Months Ended 2019 2018 (In millions) Cost of sales $ 4.1 $ 9.7 General and administrative 0.8 — Other operating expense, net 28.8 28.9 Total $ 33.7 $ 38.6 |
Activity of Restructuring Program Liabilities | The table below presents the activity of the liabilities associated with the Restructuring Programs as of March 31, 2019 : Severance Other Costs Total Liabilities (In millions) Balance as of December 31, 2018 $ 19.3 $ 2.6 $ 21.9 Expenses recognized 3.1 — 3.1 Cash payments (7.7 ) — (7.7 ) Reclassification due to adoption of ASU 2016-02 — (2.6 ) (2.6 ) Balance as of March 31, 2019 $ 14.7 $ — $ 14.7 |
TreeHouse 2020 Restructuring Plan | |
Restructuring Cost and Reserve [Line Items] | |
Aggregate Expenses Incurred Associated with Facility Closure | Below is a summary of the overall TreeHouse 2020 program costs by type: Three Months Ended March 31, Cumulative Costs To Date Total Expected Costs 2019 2018 (In millions) Asset-related $ 2.9 $ 5.3 $ 58.7 $ 71.0 Employee-related 4.7 8.4 54.6 77.0 Other costs 20.4 14.0 109.1 202.0 Total $ 28.0 $ 27.7 $ 222.4 $ 350.0 |
Schedule of Facility Closures | The table below shows key information regarding the Company's announced plant closures, a component of the broader TreeHouse 2020 program: Facility Location Date of Closure Announcement Full Facility Closure Primary Products Produced Primary Segment(s) Affected Total Costs to Close Total Cash Costs to Close (In millions) Dothan, Alabama August 3, 2017 Partial closure completed in Q3 2018 Trail mix and snack nuts Snacks $ 11.8 $ 6.1 Brooklyn Park, Minnesota August 3, 2017 Completed in Q4 2017 Dry dinners Meal Solutions 16.1 9.6 Plymouth, Indiana August 3, 2017 Completed in Q4 2017 Pickles Meal Solutions 9.3 3.8 Battle Creek, Michigan January 31, 2018 Q3 2019 Ready-to-eat cereal Baked Goods 18.2 11.8 Visalia, California February 15, 2018 Completed in Q1 2019 Pretzels Baked Goods 22.1 8.8 $ 77.5 $ 40.1 |
Structure to Win Improvement Program | |
Restructuring Cost and Reserve [Line Items] | |
Aggregate Expenses Incurred Associated with Facility Closure | Below is a summary of costs by type associated with the Structure to Win program: Three Months Ended March 31, Cumulative Costs To Date Total Expected Costs 2019 2018 (In millions) Asset-related $ 0.8 $ — $ 3.0 $ 3.8 Employee-related 1.4 5.5 23.7 31.8 Other costs 3.5 2.9 24.1 27.4 Total $ 5.7 $ 8.4 $ 50.8 $ 63.0 |
Restructuring and Margin Improvement Activities Categories | |
Restructuring Cost and Reserve [Line Items] | |
Aggregate Expenses Incurred Associated with Facility Closure | The costs by activity for the Restructuring Programs are outlined below: Three Months Ended 2019 2018 (In millions) TreeHouse 2020 $ 28.0 $ 27.7 Structure to Win 5.7 8.4 Other restructuring and plant closing costs — 2.5 Total Restructuring Programs $ 33.7 $ 38.6 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: Balance Sheet Classification March 31, 2019 Assets Operating Operating lease right-of-use assets $ 228.8 Finance Property, plant, and equipment, net 1.8 Total assets $ 230.6 Liabilities Current liabilities Operating Accrued expenses $ 41.1 Finance Current portion of long-term debt 1.1 Total current liabilities 42.2 Noncurrent liabilities Operating Operating lease liabilities 204.6 Finance Long-term debt 1.3 Total noncurrent liabilities 205.9 Total lease liabilities $ 248.1 |
Components of Lease Expense | The components of lease expense were as follows: Three Months Ended Income Statement Classification March 31, 2019 Operating lease cost Cost of sales and General and administrative $ 11.6 Finance lease cost: Amortization of right-of-use assets Cost of sales and General and administrative 0.4 Interest on lease liabilities Interest expense 0.1 Total finance lease cost 0.5 Variable lease cost (1) Cost of sales and General and administrative 1.2 Net lease cost $ 13.3 (1) Includes short-term leases, which are immaterial. |
Future Maturities of Operating Lease Liabilities | Future maturities of lease liabilities were as follows: Operating Leases (1) Finance Leases Nine months ended December 31, 2019 $ 39.3 $ 1.1 2020 47.0 0.5 2021 42.2 0.4 2022 33.8 0.1 2023 27.1 0.1 Thereafter 115.6 0.3 Total lease payments 305.0 2.5 Less: Interest (59.3 ) (0.1 ) Present value of lease liabilities $ 245.7 $ 2.4 (1) Operating lease payments include $3.0 million related to options to extend lease terms that are reasonably certain of being exercised. |
Future Maturities of Finance Lease Liabilities | Future maturities of lease liabilities were as follows: Operating Leases (1) Finance Leases Nine months ended December 31, 2019 $ 39.3 $ 1.1 2020 47.0 0.5 2021 42.2 0.4 2022 33.8 0.1 2023 27.1 0.1 Thereafter 115.6 0.3 Total lease payments 305.0 2.5 Less: Interest (59.3 ) (0.1 ) Present value of lease liabilities $ 245.7 $ 2.4 (1) Operating lease payments include $3.0 million related to options to extend lease terms that are reasonably certain of being exercised. |
Other Information Related to Leases | Other information related to leases were as follows: Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 12.6 Operating cash flows from finance leases 0.1 Financing cash flows from finance leases 0.4 |
Schedule of Weighted Average Remaining Lease Term | The weighted average remaining lease term was as follows: March 31, 2019 Operating leases (in years) 7.9 Finance leases (in years) 2.6 |
Schedule of Weighted Average Discount Rate | The weighted average discount rate was as follows: March 31, 2019 Operating leases 4.8 % Finance leases 4.1 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | March 31, 2019 December 31, 2018 (In millions) Raw materials and supplies $ 361.8 $ 390.8 Finished goods 517.0 473.0 LIFO reserve (24.6 ) (24.1 ) Total inventories $ 854.2 $ 839.7 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill for the three months ended March 31, 2019 are as follows: Baked Goods Beverages Meal Solutions Snacks Total (In millions) Goodwill $ 642.2 $ 712.5 $ 851.2 $ 576.8 $ 2,782.7 Accumulated impairment losses (33.0 ) — (11.5 ) (576.8 ) (621.3 ) Balance at January 1, 2019 609.2 712.5 839.7 — 2,161.4 Foreign currency exchange adjustments — 1.0 1.5 — 2.5 Balance at March 31, 2019 $ 609.2 $ 713.5 $ 841.2 $ — $ 2,163.9 |
Gross Carrying Amounts and Accumulated Amortization of Intangible Assets, with Finite Lives | The gross carrying amounts and accumulated amortization of intangible assets with finite lives as of March 31, 2019 and December 31, 2018 are as follows: March 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In millions) Intangible assets with finite lives: Customer-related $ 957.0 $ (403.9 ) $ 553.1 $ 954.3 $ (387.9 ) $ 566.4 Contractual agreements 3.0 (3.0 ) — 3.0 (3.0 ) — Trademarks 59.2 (28.8 ) 30.4 59.1 (27.6 ) 31.5 Formulas/recipes 33.7 (24.8 ) 8.9 33.7 (23.5 ) 10.2 Computer software 165.4 (89.0 ) 76.4 155.3 (84.6 ) 70.7 Total finite lived intangibles $ 1,218.3 $ (549.5 ) $ 668.8 $ 1,205.4 $ (526.6 ) $ 678.8 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | March 31, 2019 December 31, 2018 (In millions) Term Loan A $ 488.8 $ 488.8 Term Loan A-1 841.3 851.2 2022 Notes 375.9 375.9 2024 Notes 602.9 602.9 Finance leases 2.4 2.5 Total outstanding debt 2,311.3 2,321.3 Deferred financing costs (21.5 ) (22.7 ) Less current portion (4.6 ) (1.2 ) Total long-term debt $ 2,285.2 $ 2,297.4 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Summary of Effect of Share-Based Compensation Awards on Weighted Average Number of Shares Outstanding Used in Calculating Diluted Earnings Per Share | The following table summarizes the effect of the share-based compensation awards on the weighted average number of shares outstanding used in calculating diluted loss per share: Three Months Ended 2019 2018 (In millions, except per share data) Net loss $ (27.3 ) $ (34.1 ) Weighted average common shares outstanding 56.1 56.5 Assumed exercise/vesting of equity awards (1) — — Weighted average diluted common shares outstanding 56.1 56.5 Net loss per basic share $ (0.49 ) $ (0.60 ) Net loss per diluted share $ (0.49 ) $ (0.60 ) (1) Incremental shares from equity awards are computed using the treasury stock method. For the three months ended March 31, 2019 and 2018 , the weighted average common shares outstanding is the same for both the computations of basic and diluted shares because the Company had a net loss for the period. Equity awards excluded from the Company's computation of diluted earnings per share because they were anti-dilutive, were 1.7 million and 2.1 million for the three months ended March 31, 2019 and 2018 , respectively. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity | The following table summarizes stock option activity during the three months ended March 31, 2019 . Employee Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (yrs) Aggregate Intrinsic Value (In thousands) (In millions) Outstanding, at December 31, 2018 1,720 $ 75.24 4.8 $ 1.1 Forfeited (8 ) 89.54 Exercised (4 ) 58.27 Expired (74 ) 77.45 Outstanding, at March 31, 2019 1,634 75.07 4.7 4.5 Vested/expected to vest, at March 31, 2019 1,619 74.99 4.6 4.4 Exercisable, at March 31, 2019 1,506 73.95 4.4 4.4 |
Highlight of Stock Options Activity | Three Months Ended 2019 2018 (In millions) Compensation expense $ 0.9 $ 2.7 Intrinsic value of stock options exercised — 1.5 |
Summary of Restricted Stock Unit Activity | The following table summarizes the restricted stock unit activity during the three months ended March 31, 2019 : Employee Restricted Stock Units Weighted Average Grant Date Fair Value Director Restricted Stock Units Weighted Average Grant Date Fair Value (In thousands) (In thousands) Outstanding, at December 31, 2018 685 $ 52.20 129 $ 53.75 Granted 327 64.39 — — Vested (231 ) 55.58 (9 ) 38.27 Forfeited (23 ) 47.49 — — Outstanding, at March 31, 2019 758 56.59 120 54.99 |
Highlights of Restricted Stock Unit Activity | Three Months Ended 2019 2018 (In millions) Compensation expense $ 4.6 $ 8.3 Fair value of vested restricted stock units 15.2 4.3 Tax benefit recognized from vested restricted stock units 2.6 1.0 |
Summary of Performance Unit Activity | The following table summarizes the performance unit activity during the three months ended March 31, 2019 : Performance Units Weighted Average Grant Date Fair Value (In thousands) Unvested, at December 31, 2018 176 $ 71.49 Granted 353 62.07 Forfeited (4 ) 89.37 Unvested, at March 31, 2019 525 65.04 |
Highlight of Performance Unit Activity | Three Months Ended 2019 2018 (In millions) Compensation expense $ 0.6 $ 5.3 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss Net of Tax | Accumulated other comprehensive loss consists of the following components, all of which are net of tax: Foreign Currency Translation (1) Unrecognized Pension and Postretirement Benefits (1) Accumulated Other Comprehensive Loss (In millions) Balance at December 31, 2017 $ (57.2 ) $ (4.3 ) $ (61.5 ) Other comprehensive loss (10.1 ) — (10.1 ) Reclassifications from accumulated other comprehensive loss (2) — 0.2 0.2 Reclassifications from accumulated other comprehensive loss - Adoption of ASU 2018-02 — (1.1 ) (1.1 ) Other comprehensive loss (10.1 ) (0.9 ) (11.0 ) Balance at March 31, 2018 $ (67.3 ) $ (5.2 ) $ (72.5 ) Balance at December 31, 2018 $ (91.7 ) $ (5.4 ) $ (97.1 ) Other comprehensive income 6.8 — 6.8 Reclassifications from accumulated other comprehensive income (2) — 0.1 0.1 Other comprehensive income 6.8 0.1 6.9 Balance at March 31, 2019 $ (84.9 ) $ (5.3 ) $ (90.2 ) (1) The tax impact of the foreign currency translation adjustment and the unrecognized pension and postretirement benefits reclassification was insignificant for the three months ended March 31, 2019 and 2018. (2) Refer to Note 13 for additional information regarding these reclassifications. |
Employee Retirement and Postr_2
Employee Retirement and Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Summary of Net Periodic Cost of Pension and Postretirement Benefit Plans | Components of net periodic pension benefit are as follows: Three Months Ended 2019 2018 (In millions) Service cost $ 0.5 $ 0.6 Interest cost 3.2 2.9 Expected return on plan assets (3.8 ) (4.0 ) Amortization of unrecognized prior service cost — — Amortization of unrecognized net loss 0.1 0.2 Net periodic pension benefit $ — $ (0.3 ) Components of net periodic postretirement expense are as follows: Three Months Ended 2019 2018 (In millions) Interest cost $ 0.3 $ 0.3 Net periodic postretirement cost $ 0.3 $ 0.3 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative, Fair Value, and Location on Condensed Consolidated Balance Sheet | The following table identifies the fair value of each derivative instrument: Fair Value March 31, 2019 December 31, 2018 Asset Derivatives (In millions) Commodity contracts $ 1.2 $ 0.6 Foreign currency contracts 0.3 1.5 Interest rate swap agreements 7.1 10.1 $ 8.6 $ 12.2 Liability Derivatives Commodity contracts $ 0.7 $ 1.8 Foreign currency contracts 0.1 — Interest rate swap agreements 32.3 19.0 $ 33.1 $ 20.8 |
Gains and Losses on Derivative Contracts | We recorded the following gains and losses on our derivative contracts in the Condensed Consolidated Statements of Operations: Location of Gain (Loss) Three Months Ended Recognized in Net Loss 2019 2018 (In millions) Mark-to-market unrealized gain (loss) Commodity contracts Other expense, net $ 1.7 $ (1.0 ) Foreign currency contracts Other expense, net (1.3 ) 1.8 Interest rate swap agreements Other expense, net (16.3 ) (6.4 ) Total unrealized loss (15.9 ) (5.6 ) Realized gain Commodity contracts Manufacturing related to Cost of sales and transportation related to Selling and distribution 0.5 2.4 Foreign currency contracts Cost of sales 0.3 0.6 Interest rate swap agreements Interest expense 2.4 0.8 Total realized gain 3.2 3.8 Total loss $ (12.7 ) $ (1.8 ) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Financial Information Relating to Reportable Segments | Financial information relating to the Company’s reportable segments, revised to reflect the new segment structure, is as follows: Three Months Ended 2019 2018 (In millions) Net sales to external customers: Baked Goods $ 422.7 $ 455.4 Beverages 237.2 249.1 Meal Solutions 464.9 523.3 Snacks 176.3 253.4 Total $ 1,301.1 $ 1,481.2 Direct operating income: Baked Goods $ 44.7 $ 28.0 Beverages 43.9 39.4 Meal Solutions 46.9 56.2 Snacks (13.8 ) 7.6 Total 121.7 131.2 Unallocated selling, general, and administrative expenses (58.5 ) (81.3 ) Unallocated cost of sales (1) (8.1 ) (7.5 ) Unallocated corporate expense and other (1) (56.0 ) (51.1 ) Operating loss $ (0.9 ) $ (8.7 ) (1) Includes charges related to restructuring programs and other costs managed at corporate. |
Schedule of Segment Revenue Disaggregated by Product Category | Segment revenue disaggregated by product category groups, revised to reflect the new segment structure, is as follows: Three Months Ended 2019 2018 (In millions) Retail bakery $ 159.9 $ 177.1 Baked products 262.8 278.3 Total Baked Goods 422.7 455.4 Beverages 165.8 171.4 Beverage enhancers 71.4 77.7 Total Beverages 237.2 249.1 Dressings and sauces 225.9 246.2 Pickles 60.2 69.0 Pasta and dry dinners 113.4 142.0 Cereals and other meals 65.4 66.1 Total Meal Solutions 464.9 523.3 Snack nuts 149.9 202.4 Trail mix 26.4 51.0 Total Snacks 176.3 253.4 Total net sales $ 1,301.1 $ 1,481.2 |
Guarantor and Non-Guarantor F_2
Guarantor and Non-Guarantor Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Supplemental Consolidating Balance Sheet | densed Supplemental Consolidating Balance Sheet March 31, 2019 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 40.8 $ — $ 38.2 $ — $ 79.0 Accounts receivable, net 0.7 320.7 45.9 — 367.3 Inventories — 748.8 105.4 — 854.2 Prepaid expenses and other current assets 99.3 60.9 24.7 (106.1 ) 78.8 Total current assets 140.8 1,130.4 214.2 (106.1 ) 1,379.3 Property, plant, and equipment, net 41.8 1,074.1 144.1 — 1,260.0 Operating lease right-of-use assets 38.1 160.8 29.9 — 228.8 Goodwill — 2,046.7 117.2 — 2,163.9 Investment in subsidiaries 5,206.9 484.1 — (5,691.0 ) — Deferred income taxes 34.0 — — (34.0 ) — Intangible and other assets, net 90.0 560.6 82.4 — 733.0 Total assets $ 5,551.6 $ 5,456.7 $ 587.8 $ (5,831.1 ) $ 5,765.0 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 37.5 $ 495.3 $ 58.3 $ — $ 591.1 Accrued expenses 65.4 260.5 25.8 (106.1 ) 245.6 Current portion of long-term debt 4.1 0.4 0.1 — 4.6 Total current liabilities 107.0 756.2 84.2 (106.1 ) 841.3 Long-term debt 2,284.2 0.4 0.6 — 2,285.2 Operating lease liabilities 43.6 135.5 25.5 — 204.6 Deferred income taxes — 172.1 17.1 (34.0 ) 155.2 Other long-term liabilities 9.0 142.0 4.5 — 155.5 Intercompany accounts (receivable) payable, net 984.6 (956.4 ) (28.2 ) — — Stockholders’ equity 2,123.2 5,206.9 484.1 (5,691.0 ) 2,123.2 Total liabilities and stockholders’ equity $ 5,551.6 $ 5,456.7 $ 587.8 $ (5,831.1 ) $ 5,765.0 Condensed Supplemental Consolidating Balance Sheet December 31, 2018 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 77.9 $ — $ 86.4 $ — $ 164.3 Accounts receivable, net 1.0 314.1 36.2 — 351.3 Inventories — 746.7 93.0 — 839.7 Prepaid expenses and other current assets 80.9 60.4 16.8 (96.3 ) 61.8 Total current assets 159.8 1,121.2 232.4 (96.3 ) 1,417.1 Property, plant, and equipment, net 42.8 1,087.8 143.8 — 1,274.4 Goodwill — 2,046.7 114.7 — 2,161.4 Investment in subsidiaries 5,152.4 559.3 — (5,711.7 ) — Deferred income taxes 34.2 — — (34.2 ) — Intangible and other assets, net 86.6 577.0 82.8 — 746.4 Total assets $ 5,475.8 $ 5,392.0 $ 573.7 $ (5,842.2 ) $ 5,599.3 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 23.9 $ 508.3 $ 45.7 $ — $ 577.9 Accrued expenses 71.8 261.6 19.0 (96.3 ) 256.1 Current portion of long-term debt 0.6 0.5 0.1 — 1.2 Total current liabilities 96.3 770.4 64.8 (96.3 ) 835.2 Long-term debt 2,296.2 0.6 0.6 — 2,297.4 Deferred income taxes — 171.9 16.5 (34.2 ) 154.2 Other long-term liabilities 17.7 147.8 5.1 — 170.6 Intercompany accounts (receivable) payable, net 923.7 (851.1 ) (72.6 ) — — Stockholders’ equity 2,141.9 5,152.4 559.3 (5,711.7 ) 2,141.9 Total liabilities and stockholders’ equity $ 5,475.8 $ 5,392.0 $ 573.7 $ (5,842.2 ) $ 5,599.3 |
Condensed Supplemental Consolidating Statement of Operations | Condensed Supplemental Consolidating Statement of Operations Three Months Ended March 31, 2019 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 1,245.7 $ 152.7 $ (97.3 ) $ 1,301.1 Cost of sales — 1,058.3 145.5 (97.3 ) 1,106.5 Gross profit — 187.4 7.2 — 194.6 Selling, general, and administrative expense 34.7 102.0 8.4 — — 145.1 Amortization expense 3.4 16.0 2.2 — 21.6 Other operating expense, net 19.4 9.1 0.3 — 28.8 Operating income (loss) (57.5 ) 60.3 (3.7 ) — (0.9 ) Interest expense 26.1 — 0.8 — 26.9 (Gain) loss on foreign currency exchange — (0.4 ) — — (0.4 ) Other expense, net 13.6 0.2 (1.6 ) — 12.2 Loss before income taxes (97.2 ) 60.5 (2.9 ) — (39.6 ) Income tax benefit (22.3 ) 9.7 0.3 — (12.3 ) Equity in net income (loss) of subsidiaries 47.6 (3.2 ) — (44.4 ) — Net loss $ (27.3 ) $ 47.6 $ (3.2 ) $ (44.4 ) $ (27.3 ) Condensed Supplemental Consolidating Statement of Operations Three Months Ended March 31, 2018 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ 1,408.8 $ 177.2 $ (104.8 ) $ 1,481.2 Cost of sales — 1,194.3 159.8 (104.8 ) 1,249.3 Gross profit — 214.5 17.4 — 231.9 Selling, general, and administrative expense 44.6 136.0 8.9 — 189.5 Amortization expense 3.0 16.9 2.3 — 22.2 Other operating expense, net 18.8 10.0 0.1 — 28.9 Operating income (loss) (66.4 ) 51.6 6.1 — (8.7 ) Interest expense 29.0 — 1.4 (1.9 ) 28.5 (Gain) loss on foreign currency exchange (0.4 ) 2.1 0.8 — 2.5 Other expense, net 5.3 (0.2 ) (2.8 ) 1.9 4.2 Loss before income taxes (100.3 ) 49.7 6.7 — (43.9 ) Income tax benefit (20.2 ) 9.2 1.2 — (9.8 ) Equity in net income (loss) of subsidiaries 46.0 5.5 — (51.5 ) — Net loss $ (34.1 ) $ 46.0 $ 5.5 $ (51.5 ) $ (34.1 ) |
Condensed Supplemental Consolidating Statement of Comprehensive Income (Loss) | Condensed Supplemental Consolidating Statement of Comprehensive Income (Loss) Three Months Ended March 31, 2019 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net loss $ (27.3 ) $ 47.6 $ (3.2 ) $ (44.4 ) $ (27.3 ) Other comprehensive income (loss): Foreign currency translation adjustments — — 6.8 — 6.8 Pension and postretirement reclassification adjustment, net of tax — 0.1 — — 0.1 Other comprehensive income (loss) — 0.1 6.8 — 6.9 Equity in other comprehensive (loss) income of subsidiaries 6.9 6.8 — (13.7 ) — Comprehensive loss $ (20.4 ) $ 54.5 $ 3.6 $ (58.1 ) $ (20.4 ) Condensed Supplemental Consolidating Statement of Comprehensive Income (Loss) Three Months Ended March 31, 2018 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net loss $ (34.1 ) $ 46.0 $ 5.5 $ (51.5 ) $ (34.1 ) Other comprehensive income (loss): Foreign currency translation adjustments — — (10.1 ) — (10.1 ) Pension and postretirement reclassification adjustment, net of tax — 0.2 — — 0.2 Adoption of ASU 2018-02 reclassification to retained earnings — (1.1 ) — — (1.1 ) Other comprehensive income (loss) — (0.9 ) (10.1 ) — (11.0 ) Equity in other comprehensive income (loss) of subsidiaries (9.9 ) (10.1 ) — 20.0 — Comprehensive loss $ (44.0 ) $ 35.0 $ (4.6 ) $ (31.5 ) $ (45.1 ) |
Condensed Supplemental Consolidating Statement of Cash Flows | Condensed Supplemental Consolidating Statement of Cash Flows Three Months Ended March 31, 2019 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ (50.0 ) $ 61.9 $ (5.3 ) $ (44.5 ) $ (37.9 ) Cash flows from investing activities: Additions to property, plant, and equipment — (27.7 ) (2.2 ) — (29.9 ) Additions to intangible assets (6.4 ) (0.1 ) — — (6.5 ) Intercompany transfer (21.5 ) (11.8 ) — 33.3 — Other — — (0.1 ) — (0.1 ) Net cash (used in) provided by investing activities (27.9 ) (39.6 ) (2.3 ) 33.3 (36.5 ) Cash flows from financing activities: Net (repayment) borrowing of debt (10.0 ) (0.4 ) — — (10.4 ) Intercompany transfer 55.2 (21.9 ) (44.5 ) 11.2 — Receipts related to stock-based award activities 0.2 — — — 0.2 Payments related to stock-based award activities (4.6 ) — — — (4.6 ) Net cash (used in) provided by financing activities 40.8 (22.3 ) (44.5 ) 11.2 (14.8 ) Effect of exchange rate changes on cash and cash equivalents — — 3.9 — 3.9 Decrease (increase) in cash and cash equivalents (37.1 ) — (48.2 ) — (85.3 ) Cash and cash equivalents, beginning of period 77.9 — 86.4 — 164.3 Cash and cash equivalents, end of period $ 40.8 $ — $ 38.2 $ — $ 79.0 Condensed Supplemental Consolidating Statement of Cash Flows Three Months Ended March 31, 2018 (In millions) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ 41.3 $ 41.2 $ 26.5 $ (51.2 ) $ 57.8 Cash flows from investing activities: Additions to property, plant, and equipment (0.9 ) (32.3 ) (5.3 ) — (38.5 ) Additions to intangible assets (2.5 ) (0.4 ) — — (2.9 ) Intercompany transfer (42.8 ) (43.3 ) 0.5 85.6 — Other — — (0.3 ) — (0.3 ) Net cash (used in) provided by investing activities (46.2 ) (76.0 ) (5.1 ) 85.6 (41.7 ) Cash flows from financing activities: Net borrowing (repayment) of debt (2.4 ) (1.4 ) — — (3.8 ) Intercompany transfer 10.8 36.2 (12.6 ) (34.4 ) — Repurchases of common stock (17.1 ) — — — (17.1 ) Receipts related to stock-based award activities 1.9 — — — 1.9 Payments related to stock-based award activities (1.1 ) — — — (1.1 ) Net cash (used in) provided by financing activities (7.9 ) 34.8 (12.6 ) (34.4 ) (20.1 ) Effect of exchange rate changes on cash and cash equivalents — — (0.3 ) — (0.3 ) Increase (decrease) in cash and cash equivalents (12.8 ) — 8.5 — (4.3 ) Cash and cash equivalents, beginning of period 83.2 0.2 49.4 — 132.8 Cash and cash equivalents, end of period $ 70.4 $ 0.2 $ 57.9 $ — $ 128.5 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 228.8 | $ 0 | |
Operating lease, liability | 245.7 | ||
Liabilities | 3,641.8 | 3,457.4 | |
Assets | $ 5,765 | 5,599.3 | |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 252.5 | ||
Operating lease, liability | $ 252.5 | ||
Liabilities | 17.2 | ||
Assets | $ 0.6 |
Restructuring Programs - Aggreg
Restructuring Programs - Aggregate Expenses Incurred Associated with Facility Closure (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 33.7 | $ 38.6 | |
Cost of sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 4.1 | 9.7 | |
General and administrative | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0.8 | 0 | |
Other operating expense, net | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 28.8 | 28.9 | |
TreeHouse 2020 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 28 | 27.7 | |
Cumulative costs to date | 222.4 | ||
Total Costs to Close | 350 | ||
Structure to Win Improvement Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 5.7 | 8.4 | |
Cumulative costs to date | 50.8 | ||
Total Costs to Close | 63 | $ 49.5 | |
Restructuring and Margin Improvement Activities Categories | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 33.7 | 38.6 | |
Restructuring and Margin Improvement Activities Categories | TreeHouse 2020 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 28 | 27.7 | |
Restructuring and Margin Improvement Activities Categories | Structure to Win Improvement Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 5.7 | 8.4 | |
Restructuring and Margin Improvement Activities Categories | Restructuring Plans Other Than TreeHouse 2020 | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | 2.5 | |
Asset Related Costs | TreeHouse 2020 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 2.9 | 5.3 | |
Cumulative costs to date | 58.7 | ||
Total Costs to Close | 71 | ||
Asset Related Costs | Structure to Win Improvement Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0.8 | 0 | |
Cumulative costs to date | 3 | ||
Total Costs to Close | 3.8 | ||
Employee Related Costs | TreeHouse 2020 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 4.7 | 8.4 | |
Cumulative costs to date | 54.6 | ||
Total Costs to Close | 77 | ||
Employee Related Costs | Structure to Win Improvement Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 1.4 | 5.5 | |
Cumulative costs to date | 23.7 | ||
Total Costs to Close | 31.8 | ||
Other Restructuring Costs | TreeHouse 2020 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 20.4 | 14 | |
Cumulative costs to date | 109.1 | ||
Total Costs to Close | 202 | ||
Other Restructuring Costs | Structure to Win Improvement Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 3.5 | $ 2.9 | |
Cumulative costs to date | 24.1 | ||
Total Costs to Close | $ 27.4 |
Restructuring Programs - Activi
Restructuring Programs - Activity of Restructuring Program Liabilities (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Reserve [Roll Forward] | ||
Expenses recognized | $ 33.7 | $ 38.6 |
Restructuring Plans Other Than TreeHouse 2020 | Severance | ||
Restructuring Reserve [Roll Forward] | ||
Balance as of December 31, 2018 | 19.3 | |
Cash payments | (7.7) | |
Reclassification due to adoption of ASU 2016-02 | 0 | |
Balance as of March 31, 2019 | 14.7 | |
Restructuring Plans Other Than TreeHouse 2020 | Other Costs | ||
Restructuring Reserve [Roll Forward] | ||
Balance as of December 31, 2018 | 2.6 | |
Cash payments | 0 | |
Reclassification due to adoption of ASU 2016-02 | (2.6) | |
Restructuring Plans Other Than TreeHouse 2020 | Employee Related Costs | ||
Restructuring Reserve [Roll Forward] | ||
Balance as of December 31, 2018 | 21.9 | |
Cash payments | (7.7) | |
Reclassification due to adoption of ASU 2016-02 | (2.6) | |
Balance as of March 31, 2019 | 14.7 | |
Operating Expense | Restructuring Plans Other Than TreeHouse 2020 | Severance | ||
Restructuring Reserve [Roll Forward] | ||
Expenses recognized | 3.1 | |
Operating Expense | Restructuring Plans Other Than TreeHouse 2020 | Other Costs | ||
Restructuring Reserve [Roll Forward] | ||
Expenses recognized | 0 | |
Operating Expense | Restructuring Plans Other Than TreeHouse 2020 | Employee Related Costs | ||
Restructuring Reserve [Roll Forward] | ||
Expenses recognized | $ 3.1 |
Restructuring Programs - Schedu
Restructuring Programs - Schedule of Facility Closures (Detail) - TreeHouse 2020 Restructuring Plan $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Total Costs to Close | $ 350 |
Dothan, Alabama | |
Restructuring Cost and Reserve [Line Items] | |
Facility Location | Dothan, Alabama |
Date of Closure Announcement | Aug. 3, 2017 |
Full Facility Closure | Partial closure completed in Q3 2018 |
Primary Products Produced | Trail mix and snack nuts |
Primary Segment(s) Affected | Snacks |
Total Costs to Close | $ 11.8 |
Total Cash Costs (Proceeds) to Close | $ 6.1 |
Brooklyn Park, Minnesota | |
Restructuring Cost and Reserve [Line Items] | |
Facility Location | Brooklyn Park, Minnesota |
Date of Closure Announcement | Aug. 3, 2017 |
Full Facility Closure | Completed in Q4 2017 |
Primary Products Produced | Dry dinners |
Primary Segment(s) Affected | Meal Solutions |
Total Costs to Close | $ 16.1 |
Total Cash Costs (Proceeds) to Close | $ 9.6 |
Plymouth, Indiana | |
Restructuring Cost and Reserve [Line Items] | |
Facility Location | Plymouth, Indiana |
Date of Closure Announcement | Aug. 3, 2017 |
Full Facility Closure | Completed in Q4 2017 |
Primary Products Produced | Pickles |
Primary Segment(s) Affected | Meal Solutions |
Total Costs to Close | $ 9.3 |
Total Cash Costs (Proceeds) to Close | $ 3.8 |
Battle Creek, Michigan | |
Restructuring Cost and Reserve [Line Items] | |
Facility Location | Battle Creek, Michigan |
Date of Closure Announcement | Jan. 31, 2018 |
Full Facility Closure | Q3 2019 |
Primary Products Produced | Ready-to-eat cereal |
Primary Segment(s) Affected | Baked Goods |
Total Costs to Close | $ 18.2 |
Total Cash Costs (Proceeds) to Close | $ 11.8 |
Visalia, California | |
Restructuring Cost and Reserve [Line Items] | |
Facility Location | Visalia, California |
Date of Closure Announcement | Feb. 15, 2018 |
Full Facility Closure | Completed in Q1 2019 |
Primary Products Produced | Pretzels |
Primary Segment(s) Affected | Baked Goods |
Total Costs to Close | $ 22.1 |
Total Cash Costs (Proceeds) to Close | 8.8 |
Dothan, Brooklyn Park, Plymouth, Battle Creek and Visalia | |
Restructuring Cost and Reserve [Line Items] | |
Total Costs to Close | 77.5 |
Total Cash Costs (Proceeds) to Close | $ 40.1 |
Restructuring Programs - Additi
Restructuring Programs - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs other than facility closing | $ 0 | $ 2.5 | |
St. Louis Missouri Facility Closure | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected Cost | $ 7.8 | ||
TreeHouse 2020 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Description of restructuring plan | In the third quarter of 2017, the Company announced TreeHouse 2020, a program intended to accelerate long-term growth through optimization of our manufacturing network, transformation of our mixing centers and warehouse footprint, and leveraging of systems and processes to drive performance. The Company’s workstreams related to these activities and selling, general, and administrative cost reductions will increase our capacity utilization, expand operating margins, and streamline our plant structure to optimize our supply chain. | ||
Expected Cost | $ 350 | ||
TreeHouse 2020 Restructuring Plan | Facility Closing | |||
Restructuring Cost and Reserve [Line Items] | |||
Description of restructuring plan | In 2017, the Company announced the closure of the Brooklyn Park, Minnesota and Plymouth, Indiana facilities, as well as the downsizing of the Dothan, Alabama facility. In the first quarter of 2018, the Company announced the closure of the Company’s Visalia, California and Battle Creek, Michigan facilities. | ||
Structure to Win Improvement Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Description of restructuring plan | In the first quarter of 2018, the Company announced an operating expenses improvement program (“Structure to Win”) designed to align our organization structure with strategic priorities. The program is intended to drive operational effectiveness, cost reduction, and position the Company for growth with a focus on a lean customer focused go-to-market team, centralized supply chain, and streamlined administrative functions. | ||
Expected Cost | $ 63 | $ 49.5 |
Leases - Narrative (Detail)
Leases - Narrative (Detail) | 3 Months Ended |
Mar. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating and financing leases, option to extend, term (in years) | 29 years |
Lessee, operating and financing leases, option to terminate, term (in years) | 1 year |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating and financing leases, term of contract (in years) | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating and financing leases, term of contract (in years) | 21 years |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Operating | $ 228.8 | $ 0 |
Finance | 1.8 | |
Total assets | 230.6 | |
Current liabilities: | ||
Operating | 41.1 | |
Finance | 1.1 | |
Total current liabilities | 42.2 | |
Noncurrent liabilities | ||
Operating | 204.6 | $ 0 |
Finance | 1.3 | |
Total noncurrent liabilities | 205.9 | |
Total lease liabilities | $ 248.1 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Operating lease cost: [Abstract] | |
Operating lease cost | $ 11.6 |
Finance lease cost: | |
Amortization of right-of-use assets | 0.4 |
Interest on lease liabilities | 0.1 |
Total finance lease cost | 0.5 |
Variable lease cost | 1.2 |
Net lease cost | $ 13.3 |
Leases - Operating and Finance
Leases - Operating and Finance Lease Liability (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Operating Leases | ||
2019 | $ 39.3 | |
2020 | 47 | |
2021 | 42.2 | |
2022 | 33.8 | |
2023 | 27.1 | |
Thereafter | 115.6 | |
Total lease payments | 305 | |
Less: Interest | (59.3) | |
Present value of lease liabilities | 245.7 | |
Finance Leases | ||
2019 | 1.1 | |
2020 | 0.5 | |
2021 | 0.4 | |
2022 | 0.1 | |
2023 | 0.1 | |
Thereafter | 0.3 | |
Total lease payments | 2.5 | |
Less: Interest | (0.1) | |
Present value of lease liabilities | 2.4 | $ 2.5 |
Lessee, operating lease, option to extend, amount | $ 3 |
Leases - Other Information Rela
Leases - Other Information Relating to Leases (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 12.6 | |
Operating cash flows from finance leases | 0.1 | |
Financing cash flows from finance leases | $ 0.4 | $ 0.3 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Remaining Lease Term (Detail) | Mar. 31, 2019 |
Leases [Abstract] | |
Finance lease, weighted average remaining lease term | 7 years 10 months 24 days |
Operating lease, weighted average remaining lease term | 2 years 7 months 6 days |
Leases - Schedule of Weighted_2
Leases - Schedule of Weighted Average Discount Rate (Detail) | Mar. 31, 2019 |
Leases [Abstract] | |
Operating lease, weighted average discount rate, percent | 4.80% |
Finance lease, weighted average discount rate, percent | 4.10% |
Receivables Sales Agreement - A
Receivables Sales Agreement - Additional Information (Detail) - USD ($) | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Sep. 28, 2018 | |
Receivables Sales Agreement [Line Items] | ||||
Outstanding amount of principal balances under the receivables sales agreement | $ 148,700,000 | $ 177,000,000 | ||
Loss on sale of receivables | 900,000 | $ 600,000 | ||
Retained interest | 0 | |||
Cash from customers not yet remitted | $ 97,500,000 | $ 119,300,000 | ||
Minimum | ||||
Receivables Sales Agreement [Line Items] | ||||
Proceeds from receivables sales | $ 200,000,000 | |||
Maximum | ||||
Receivables Sales Agreement [Line Items] | ||||
Proceeds from receivables sales | $ 300,000,000 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 361.8 | $ 390.8 |
Finished goods | 517 | 473 |
LIFO reserve | (24.6) | (24.1) |
Total inventories | $ 854.2 | $ 839.7 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
LIFO inventory | $ 53.5 | $ 67.8 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | |
Indefinite-lived Intangible Assets [Line Items] | ||
Number of operating segments (segment) | segment | 4 | |
Trademarks | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite lived intangibles | $ | $ 21.7 | $ 21.4 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Goodwill | $ 2,782.7 | |
Accumulated impairment losses | (621.3) | |
Beginning Balance | $ 2,161.4 | |
Foreign currency exchange adjustments | 2.5 | |
Ending Balance | 2,163.9 | |
Baked Goods | ||
Goodwill [Roll Forward] | ||
Goodwill | 642.2 | |
Accumulated impairment losses | (33) | |
Beginning Balance | 609.2 | |
Foreign currency exchange adjustments | 0 | |
Ending Balance | 609.2 | |
Beverages | ||
Goodwill [Roll Forward] | ||
Goodwill | 712.5 | |
Accumulated impairment losses | 0 | |
Beginning Balance | 712.5 | |
Foreign currency exchange adjustments | 1 | |
Ending Balance | 713.5 | |
Condiments | ||
Goodwill [Roll Forward] | ||
Goodwill | 851.2 | |
Accumulated impairment losses | (11.5) | |
Beginning Balance | 839.7 | |
Foreign currency exchange adjustments | 1.5 | |
Ending Balance | 841.2 | |
Snacks | ||
Goodwill [Roll Forward] | ||
Goodwill | 576.8 | |
Accumulated impairment losses | $ (576.8) | |
Beginning Balance | 0 | |
Foreign currency exchange adjustments | 0 | |
Ending Balance | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Gross Carrying Amounts and Accumulated Amortization of Intangible Assets, with Finite Lives (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,218.3 | $ 1,205.4 |
Accumulated Amortization | (549.5) | (526.6) |
Net Carrying Amount | 668.8 | 678.8 |
Customer-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 957 | 954.3 |
Accumulated Amortization | (403.9) | (387.9) |
Net Carrying Amount | 553.1 | 566.4 |
Contractual agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3 | 3 |
Accumulated Amortization | (3) | (3) |
Net Carrying Amount | 0 | 0 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 59.2 | 59.1 |
Accumulated Amortization | (28.8) | (27.6) |
Net Carrying Amount | 30.4 | 31.5 |
Formulas/recipes | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 33.7 | 33.7 |
Accumulated Amortization | (24.8) | (23.5) |
Net Carrying Amount | 8.9 | 10.2 |
Computer software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 165.4 | 155.3 |
Accumulated Amortization | (89) | (84.6) |
Net Carrying Amount | $ 76.4 | $ 70.7 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 31.10% | 22.30% |
Effective income tax rate impact of discrete expense rate attributable to vesting and exercise of share based awards | 1.30% | |
Decrease in total amount of unrecognized tax benefits within the next 12 months | $ 4 | |
Decrease in unrecognized tax benefits is reasonably possible | 1 | |
Tax cuts and jobs act of 2017 incomplete accounting provisional income tax expense (benefit). | $ (1.4) |
Long-Term Debt (Detail)
Long-Term Debt (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Finance leases | $ 2.4 | $ 2.5 |
Total outstanding debt | 2,311.3 | 2,321.3 |
Deferred financing costs | (21.5) | (22.7) |
Less current portion | (4.6) | (1.2) |
Total long-term debt | 2,285.2 | 2,297.4 |
Term Loan A | ||
Debt Instrument [Line Items] | ||
Term Loan | 488.8 | 488.8 |
Term Loan A-1 | ||
Debt Instrument [Line Items] | ||
Term Loan | 841.3 | 851.2 |
2022 Notes | ||
Debt Instrument [Line Items] | ||
Senior notes | 375.9 | 375.9 |
2024 Notes | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 602.9 | $ 602.9 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Average interest rate on debt outstanding | 4.34% | |
Credit agreement interest rate including effect of interest rate swaps | 3.62% | |
Long-term debt, fair value | $ 2,337,500,000 | $ 2,311,300,000 |
Long-term debt, carrying value | 2,308,900,000 | $ 2,318,800,000 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Letters of credit facility issued but undrawn | 30,400,000 | |
Revolving credit facility available | 719,600,000 | |
Revolving credit facility - maximum borrowing capacity | $ 750,000,000 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Effect of Share-Based Compensation Awards on Weighted Average Number of Shares Outstanding Used in Calculating Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (27.3) | $ (34.1) |
Weighted average common shares outstanding (shares) | 56.1 | 56.5 |
Assumed exercise/vesting of equity awards (shares) | 0 | 0 |
Weighted average diluted common shares outstanding (shares) | 56.1 | 56.5 |
Net loss per basic share (in usd per share) | $ (0.49) | $ (0.60) |
Net loss per diluted share (in usd per share) | $ (0.49) | $ (0.60) |
Earnings Per Share - Summary _2
Earnings Per Share - Summary of Effect of Share-Based Compensation Awards on Weighted Average Number of Shares Outstanding Used in Calculating Diluted Earnings Per Share (Footnote) (Detail) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Equity awards, excluded from computation of diluted earnings (in shares) | 1.7 | 2.1 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Apr. 25, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 6.1 | $ 16.3 | |
Tax benefit recognized related to the compensation cost of share-based awards | 1.5 | 4 | |
Expense on modification of stock award | 10 | ||
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 0.9 | 2.7 | |
Expense on modification of stock award | 1.2 | ||
Share based compensation arrangement, award expiration period (in years) | 10 years | ||
Compensation costs, unrecognized | $ 1.8 | ||
Compensation costs, recognition weighted average remaining period (in years) | 10 months 24 days | ||
Restricted Stock Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense on modification of stock award | 3.8 | ||
Performance Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 0.6 | 5.3 | |
Expense on modification of stock award | 5 | ||
Compensation costs, unrecognized | $ 23.3 | ||
Compensation costs, recognition weighted average remaining period (in years) | 2 years 9 months 18 days | ||
Performance Units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Predefined percentage for calculation of performance unit awards | 0.00% | ||
Performance Units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Predefined percentage for calculation of performance unit awards | 200.00% | ||
Director Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted stock units, earned and deferred (shares) | 118 | ||
Employee Restricted Stock Units and Director Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 4.6 | $ 8.3 | |
Compensation costs, unrecognized | $ 32.1 | ||
Compensation costs, recognition weighted average remaining period (in years) | 2 years 4 months 24 days | ||
TreeHouse Foods, Inc. Equity and Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares available to be awarded (shares) | 17,500 | ||
Shares available (shares) | 4,600 | ||
Subsequent Event | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock, number of additional shares reserved for issuance (shares) | 1,500 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Detail) - Employee Stock Option - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Employee Options | ||
Options Outstanding, Beginning Balance | 1,720 | |
Options, Forfeited | (8) | |
Options, Exercised | (4) | |
Options, Expired | (74) | |
Options Outstanding, Ending Balance | 1,634 | 1,720 |
Weighted Average Exercise Price | ||
Weighted Average Exercise Price, Outstanding, Beginning Balance | $ 75.24 | |
Weighted Average Exercise Price, Forfeited | 89.54 | |
Weighted Average Exercise Price, Exercised | 58.27 | |
Weighted Average Exercise Price, Expired | 77.45 | |
Weighted Average Exercise Price, Outstanding, Ending Balance | $ 75.07 | $ 75.24 |
Weighted Average Remaining Contractual Term (yrs) | ||
Options, Vested/expected to vest, at March 31, 2019 | 1,619 | |
Weighted Average Exercise Price, Vested/expected to vest, at March 31, 2019 | $ 74.99 | |
Weighted Average Remaining Contractual Term, Vested/expected to vest | 4 years 7 months 21 days | |
Aggregate Intrinsic Value, Vested/expected to vest, at March 31, 2019 | $ 4.4 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Options, Exercisable, at March 31, 2019 | 1,506 | |
Weighted Average Exercise Price, Exercisable, at March 31, 2019 | $ 73.95 | |
Weighted Average Remaining Contractual Term, Exercisable | 4 years 4 months 28 days | |
Aggregate Intrinsic Value, Exercisable, at March 31, 2019 | $ 4.4 | |
Weighted Average Remaining Contractual Term, Outstanding | 4 years 8 months 1 day | 4 years 9 months 18 days |
Aggregate Intrinsic Value, Outstanding | $ 4.5 | $ 1.1 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Employee Stock Option Highlights (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 6.1 | $ 16.3 |
Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | 0.9 | 2.7 |
Intrinsic value of stock options exercised | $ 0 | $ 1.5 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Restricted Stock and Restricted Stock Unit Activity (Detail) shares in Thousands | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Employee Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Stock Units, Outstanding, Beginning Balance (shares) | shares | 685 |
Stock Units, Granted (shares) | shares | 327 |
Stock Units, Vested (shares) | shares | (231) |
Stock Units, Forfeited (shares) | shares | (23) |
Stock Units, Outstanding, Ending Balance (shares) | shares | 758 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted Average Grant Date Fair Value, Outstanding, Beginning Balance (in dollars per share) | $ / shares | $ 52.20 |
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | $ / shares | 64.39 |
Weighted Average Grant Date Fair Value, Vested (in dollars per share) | $ / shares | 55.58 |
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) | $ / shares | 47.49 |
Weighted Average Grant Date Fair Value, Outstanding, Ending Balance (in dollars per share) | $ / shares | $ 56.59 |
Director Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Stock Units, Outstanding, Beginning Balance (shares) | shares | 129 |
Stock Units, Granted (shares) | shares | 0 |
Stock Units, Vested (shares) | shares | (9) |
Stock Units, Forfeited (shares) | shares | 0 |
Stock Units, Outstanding, Ending Balance (shares) | shares | 120 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted Average Grant Date Fair Value, Outstanding, Beginning Balance (in dollars per share) | $ / shares | $ 53.75 |
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | $ / shares | 0 |
Weighted Average Grant Date Fair Value, Vested (in dollars per share) | $ / shares | 38.27 |
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) | $ / shares | 0 |
Weighted Average Grant Date Fair Value, Outstanding, Ending Balance (in dollars per share) | $ / shares | $ 54.99 |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Employee and Director Restricted Stock and Restricted Stock Highlights (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 6.1 | $ 16.3 |
Employee Restricted Stock Units and Director Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | 4.6 | 8.3 |
Fair value of vested restricted stock units | 15.2 | 4.3 |
Tax benefit recognized from vested restricted stock units | $ 2.6 | $ 1 |
Stock-Based Compensation - Su_5
Stock-Based Compensation - Summary of Performance Unit Activity (Detail) - Performance Units shares in Thousands | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Stock Units, Outstanding, Beginning Balance (shares) | shares | 176 |
Stock Units, Granted (shares) | shares | 353 |
Stock Units, Forfeited (shares) | shares | (4) |
Stock Units, Outstanding, Ending Balance (shares) | shares | 525 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted Average Grant Date Fair Value, Outstanding, Beginning Balance (in dollars per share) | $ / shares | $ 71.49 |
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | $ / shares | 62.07 |
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) | $ / shares | 89.37 |
Weighted Average Grant Date Fair Value, Outstanding, Ending Balance (in dollars per share) | $ / shares | $ 65.04 |
Stock-Based Compensation - Su_6
Stock-Based Compensation - Summary of Performance Unit Highlights (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 6.1 | $ 16.3 |
Performance Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 0.6 | $ 5.3 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss Net of Tax (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | $ 2,141.9 | $ 2,263.3 |
Other comprehensive (loss) income | 6.8 | (10.1) |
Reclassifications from accumulated other comprehensive (loss) income | 0.1 | 0.2 |
Reclassifications from accumulated other comprehensive loss - Adoption of ASU 2018-02 | 0 | (1.1) |
Other comprehensive income (loss) | 6.9 | (11) |
Ending balance | 2,123.2 | 2,219.8 |
Foreign Currency Translation | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (91.7) | (57.2) |
Other comprehensive (loss) income | 6.8 | (10.1) |
Reclassifications from accumulated other comprehensive (loss) income | 0 | 0 |
Reclassifications from accumulated other comprehensive loss - Adoption of ASU 2018-02 | 0 | |
Other comprehensive income (loss) | 6.8 | (10.1) |
Ending balance | (84.9) | (67.3) |
Unrecognized Pension and Postretirement Benefits | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (5.4) | (4.3) |
Other comprehensive (loss) income | 0 | 0 |
Reclassifications from accumulated other comprehensive (loss) income | 0.1 | 0.2 |
Reclassifications from accumulated other comprehensive loss - Adoption of ASU 2018-02 | (1.1) | |
Other comprehensive income (loss) | 0.1 | (0.9) |
Ending balance | (5.3) | (5.2) |
Accumulated Other Comprehensive Loss | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (97.1) | (61.5) |
Ending balance | $ (90.2) | $ (72.5) |
Employee Retirement and Postr_3
Employee Retirement and Postretirement Benefits - Summary of Net Periodic Cost of Pension and Postretirement Benefit Plans (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Pension Benefits | ||
Components of net periodic costs: | ||
Service cost | $ 0.5 | $ 0.6 |
Interest cost | 3.2 | 2.9 |
Expected return on plan assets | (3.8) | (4) |
Amortization of unrecognized prior service cost | 0 | 0 |
Amortization of unrecognized net loss | 0.1 | 0.2 |
Net periodic pension and postretirement (benefit) cost | 0 | (0.3) |
Postretirement Benefits | ||
Components of net periodic costs: | ||
Interest cost | 0.3 | 0.3 |
Net periodic pension and postretirement (benefit) cost | $ 0.3 | $ 0.3 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) lb in Millions, gal in Millions | 3 Months Ended | ||
Mar. 31, 2019USD ($)MWDTHlbgal | Dec. 31, 2025 | Dec. 31, 2020 | |
Interest rate swap agreements | |||
Derivative [Line Items] | |||
Weighted average fixed interest rate | 1.54% | ||
Interest rate swap agreements | LIBOR Interest Rate | |||
Derivative [Line Items] | |||
Derivative notional amount | $ 1,800,000,000 | ||
Foreign currency contracts | |||
Derivative [Line Items] | |||
Derivative notional amount | $ 6,300,000 | ||
Derivative, expiration period | throughout 2019. | ||
Electricity Contract | |||
Derivative [Line Items] | |||
Derivative, expiration period | throughout 2019, and 2020 | ||
Notional amount outstanding | MW | 100,000 | ||
Diesel Contract | |||
Derivative [Line Items] | |||
Derivative, expiration period | throughout 2019 | ||
Derivative, notional amount, volume (in gal) | gal | 12.7 | ||
Natural Gas Contract | |||
Derivative [Line Items] | |||
Derivative, expiration period | throughout 2019 | ||
Notional amount outstanding | DTH | 2,100,000 | ||
Resin Contract | |||
Derivative [Line Items] | |||
Derivative, expiration period | throughout 2019 | ||
Derivative, notional amount, mass (in lbs) | lb | 15.5 | ||
Scenario, Forecast | Interest rate swap agreements | |||
Derivative [Line Items] | |||
Weighted average fixed interest rate | 2.91% | 2.68% |
Derivative Instruments - Deriva
Derivative Instruments - Derivative, Fair Value, and Location on Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Asset derivative, fair value | $ 8.6 | $ 12.2 |
Liability derivative, fair value | 33.1 | 20.8 |
Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivative, fair value | 1.2 | 0.6 |
Liability derivative, fair value | 0.7 | 1.8 |
Foreign currency contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivative, fair value | 0.3 | 1.5 |
Liability derivative, fair value | 0.1 | 0 |
Interest rate swap agreements | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivative, fair value | 7.1 | 10.1 |
Liability derivative, fair value | $ 32.3 | $ 19 |
Derivative Instruments - Gains
Derivative Instruments - Gains and Losses on Derivative Contracts (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Mark to market unrealized gain (loss), derivative | $ (15.9) | $ (5.7) |
Mark to market unrealized gain (loss), commodity and derivative | (15.9) | (5.6) |
Realized gain | 3.2 | 3.8 |
Total loss | (12.7) | (1.8) |
Commodity contracts | Other expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Mark to market unrealized gain (loss), commodity | 1.7 | (1) |
Commodity contracts | Manufacturing related to Cost of sales and transportation related to Selling and distribution | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Realized gain | 0.5 | 2.4 |
Foreign currency contracts | Other expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Mark to market unrealized gain (loss), derivative | (1.3) | 1.8 |
Foreign currency contracts | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Realized gain | 0.3 | 0.6 |
Interest rate swap agreements | Other expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Mark to market unrealized gain (loss), derivative | (16.3) | (6.4) |
Interest rate swap agreements | Interest expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Realized gain | $ 2.4 | $ 0.8 |
Segment Information - Financial
Segment Information - Financial Information Relating to Reportable Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 1,301.1 | $ 1,481.2 |
Direct operating income | 121.7 | 131.2 |
Unallocated selling, general, and administrative expenses | (145.1) | (189.5) |
Unallocated cost of sales | (1,106.5) | (1,249.3) |
Operating loss | (0.9) | (8.7) |
Baked Goods | ||
Segment Reporting Information [Line Items] | ||
Net sales | 422.7 | 455.4 |
Beverages | ||
Segment Reporting Information [Line Items] | ||
Net sales | 237.2 | 249.1 |
Meal Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 464.9 | 523.3 |
Snacks | ||
Segment Reporting Information [Line Items] | ||
Net sales | 176.3 | 253.4 |
Operating Segments | Baked Goods | ||
Segment Reporting Information [Line Items] | ||
Net sales | 422.7 | 455.4 |
Direct operating income | 44.7 | 28 |
Operating Segments | Beverages | ||
Segment Reporting Information [Line Items] | ||
Net sales | 237.2 | 249.1 |
Direct operating income | 43.9 | 39.4 |
Operating Segments | Meal Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 464.9 | 523.3 |
Direct operating income | 46.9 | 56.2 |
Operating Segments | Snacks | ||
Segment Reporting Information [Line Items] | ||
Net sales | 176.3 | 253.4 |
Direct operating income | (13.8) | 7.6 |
Unallocated Amount to Segment | ||
Segment Reporting Information [Line Items] | ||
Unallocated selling, general, and administrative expenses | (58.5) | (81.3) |
Corporate And Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Unallocated cost of sales | (8.1) | (7.5) |
Unallocated corporate expense and other | $ (56) | $ (51.1) |
Segment Information - Disaggreg
Segment Information - Disaggregation of Revenue (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 1,301.1 | $ 1,481.2 |
Baked Goods | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 422.7 | 455.4 |
Beverages | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 237.2 | 249.1 |
Meal Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 464.9 | 523.3 |
Snacks | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 176.3 | 253.4 |
Retail bakery | Baked Goods | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 159.9 | 177.1 |
Baked products | Baked Goods | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 262.8 | 278.3 |
Beverages | Beverages | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 165.8 | 171.4 |
Beverage enhancers | Beverages | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 71.4 | 77.7 |
Dressings and sauces | Meal Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 225.9 | 246.2 |
Pickles | Meal Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 60.2 | 69 |
Pasta and dry dinners | Meal Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 113.4 | 142 |
Cereals and other meals | Meal Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 65.4 | 66.1 |
Snack nuts | Snacks | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 149.9 | 202.4 |
Trail mix | Snacks | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 26.4 | $ 51 |
Guarantor and Non-Guarantor F_3
Guarantor and Non-Guarantor Financial Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019 | |
Direct And Indirect Guarantor Subsidiaries | |
Guarantor And Non Guarantor Financial Information [Line Items] | |
Ownership percentage of direct and indirect Guarantor subsidiaries | 100.00% |
Guarantor and Non-Guarantor F_4
Guarantor and Non-Guarantor Financial Information - Condensed Supplemental Consolidating Balance Sheet (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||||
Cash and cash equivalents | $ 79 | $ 164.3 | ||
Accounts receivable, net | 367.3 | 351.3 | ||
Inventories | 854.2 | 839.7 | ||
Prepaid expenses and other current assets | 78.8 | 61.8 | ||
Total current assets | 1,379.3 | 1,417.1 | ||
Property, plant and equipment, net | 1,260 | 1,274.4 | ||
Operating lease right-of-use assets | 228.8 | 0 | ||
Goodwill | 2,163.9 | 2,161.4 | ||
Investment in subsidiaries | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Intangible and other assets, net | 733 | 746.4 | ||
Total assets | 5,765 | 5,599.3 | ||
Current liabilities: | ||||
Accounts payable | 591.1 | 577.9 | ||
Accrued expenses | 245.6 | 256.1 | ||
Current portion of long-term debt | 4.6 | 1.2 | ||
Total current liabilities | 841.3 | 835.2 | ||
Long-term debt | 2,285.2 | 2,297.4 | ||
Operating lease liabilities | 204.6 | 0 | ||
Deferred income taxes | 155.2 | 154.2 | ||
Other long-term liabilities | 155.5 | 170.6 | ||
Intercompany accounts (receivable) payable, net | 0 | 0 | ||
Stockholders’ equity | 2,123.2 | 2,141.9 | $ 2,219.8 | $ 2,263.3 |
Total liabilities and stockholders’ equity | 5,765 | 5,599.3 | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other current assets | (106.1) | (96.3) | ||
Total current assets | (106.1) | (96.3) | ||
Property, plant and equipment, net | 0 | 0 | ||
Operating lease right-of-use assets | 0 | |||
Goodwill | 0 | 0 | ||
Investment in subsidiaries | (5,691) | (5,711.7) | ||
Deferred income taxes | (34) | (34.2) | ||
Intangible and other assets, net | 0 | 0 | ||
Total assets | (5,831.1) | (5,842.2) | ||
Current liabilities: | ||||
Accounts payable | 0 | 0 | ||
Accrued expenses | (106.1) | (96.3) | ||
Current portion of long-term debt | 0 | 0 | ||
Total current liabilities | (106.1) | (96.3) | ||
Long-term debt | 0 | 0 | ||
Operating lease liabilities | 0 | |||
Deferred income taxes | (34) | (34.2) | ||
Other long-term liabilities | 0 | 0 | ||
Intercompany accounts (receivable) payable, net | 0 | 0 | ||
Stockholders’ equity | (5,691) | (5,711.7) | ||
Total liabilities and stockholders’ equity | (5,831.1) | (5,842.2) | ||
Parent Company | ||||
Current assets: | ||||
Cash and cash equivalents | 40.8 | 77.9 | ||
Accounts receivable, net | 0.7 | 1 | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other current assets | 99.3 | 80.9 | ||
Total current assets | 140.8 | 159.8 | ||
Property, plant and equipment, net | 41.8 | 42.8 | ||
Operating lease right-of-use assets | 38.1 | |||
Goodwill | 0 | 0 | ||
Investment in subsidiaries | 5,206.9 | 5,152.4 | ||
Deferred income taxes | 34 | 34.2 | ||
Intangible and other assets, net | 90 | 86.6 | ||
Total assets | 5,551.6 | 5,475.8 | ||
Current liabilities: | ||||
Accounts payable | 37.5 | 23.9 | ||
Accrued expenses | 65.4 | 71.8 | ||
Current portion of long-term debt | 4.1 | 0.6 | ||
Total current liabilities | 107 | 96.3 | ||
Long-term debt | 2,284.2 | 2,296.2 | ||
Operating lease liabilities | 43.6 | |||
Deferred income taxes | 0 | 0 | ||
Other long-term liabilities | 9 | 17.7 | ||
Intercompany accounts (receivable) payable, net | 984.6 | 923.7 | ||
Stockholders’ equity | 2,123.2 | 2,141.9 | ||
Total liabilities and stockholders’ equity | 5,551.6 | 5,475.8 | ||
Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Accounts receivable, net | 320.7 | 314.1 | ||
Inventories | 748.8 | 746.7 | ||
Prepaid expenses and other current assets | 60.9 | 60.4 | ||
Total current assets | 1,130.4 | 1,121.2 | ||
Property, plant and equipment, net | 1,074.1 | 1,087.8 | ||
Operating lease right-of-use assets | 160.8 | |||
Goodwill | 2,046.7 | 2,046.7 | ||
Investment in subsidiaries | 484.1 | 559.3 | ||
Deferred income taxes | 0 | 0 | ||
Intangible and other assets, net | 560.6 | 577 | ||
Total assets | 5,456.7 | 5,392 | ||
Current liabilities: | ||||
Accounts payable | 495.3 | 508.3 | ||
Accrued expenses | 260.5 | 261.6 | ||
Current portion of long-term debt | 0.4 | 0.5 | ||
Total current liabilities | 756.2 | 770.4 | ||
Long-term debt | 0.4 | 0.6 | ||
Operating lease liabilities | 135.5 | |||
Deferred income taxes | 172.1 | 171.9 | ||
Other long-term liabilities | 142 | 147.8 | ||
Intercompany accounts (receivable) payable, net | (956.4) | (851.1) | ||
Stockholders’ equity | 5,206.9 | 5,152.4 | ||
Total liabilities and stockholders’ equity | 5,456.7 | 5,392 | ||
Non-Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 38.2 | 86.4 | ||
Accounts receivable, net | 45.9 | 36.2 | ||
Inventories | 105.4 | 93 | ||
Prepaid expenses and other current assets | 24.7 | 16.8 | ||
Total current assets | 214.2 | 232.4 | ||
Property, plant and equipment, net | 144.1 | 143.8 | ||
Operating lease right-of-use assets | 29.9 | |||
Goodwill | 117.2 | 114.7 | ||
Investment in subsidiaries | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Intangible and other assets, net | 82.4 | 82.8 | ||
Total assets | 587.8 | 573.7 | ||
Current liabilities: | ||||
Accounts payable | 58.3 | 45.7 | ||
Accrued expenses | 25.8 | 19 | ||
Current portion of long-term debt | 0.1 | 0.1 | ||
Total current liabilities | 84.2 | 64.8 | ||
Long-term debt | 0.6 | 0.6 | ||
Operating lease liabilities | 25.5 | |||
Deferred income taxes | 17.1 | 16.5 | ||
Other long-term liabilities | 4.5 | 5.1 | ||
Intercompany accounts (receivable) payable, net | (28.2) | (72.6) | ||
Stockholders’ equity | 484.1 | 559.3 | ||
Total liabilities and stockholders’ equity | $ 587.8 | $ 573.7 |
Guarantor and Non-Guarantor F_5
Guarantor and Non-Guarantor Financial Information - Condensed Supplemental Consolidating Statement of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net sales | $ 1,301.1 | $ 1,481.2 |
Cost of sales | 1,106.5 | 1,249.3 |
Gross profit | 194.6 | 231.9 |
Selling, general, and administrative expense | 145.1 | 189.5 |
Amortization expense | 21.6 | 22.2 |
Other operating expense, net | 28.8 | 28.9 |
Operating loss | (0.9) | (8.7) |
Interest expense | 26.9 | 28.5 |
(Gain) loss on foreign currency exchange | (0.4) | 2.5 |
Other expense, net | 12.2 | 4.2 |
Loss before income taxes | (39.6) | (43.9) |
Income tax benefit | (12.3) | (9.8) |
Equity in net income (loss) of subsidiaries | 0 | 0 |
Net loss | (27.3) | (34.1) |
Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net sales | (97.3) | (104.8) |
Cost of sales | (97.3) | (104.8) |
Gross profit | 0 | 0 |
Selling, general, and administrative expense | 0 | 0 |
Amortization expense | 0 | 0 |
Other operating expense, net | 0 | 0 |
Operating loss | 0 | 0 |
Interest expense | 0 | (1.9) |
(Gain) loss on foreign currency exchange | 0 | 0 |
Other expense, net | 0 | 1.9 |
Loss before income taxes | 0 | 0 |
Income tax benefit | 0 | 0 |
Equity in net income (loss) of subsidiaries | (44.4) | (51.5) |
Net loss | (44.4) | (51.5) |
Parent Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net sales | 0 | 0 |
Cost of sales | 0 | 0 |
Gross profit | 0 | 0 |
Selling, general, and administrative expense | 34.7 | 44.6 |
Amortization expense | 3.4 | 3 |
Other operating expense, net | 19.4 | 18.8 |
Operating loss | (57.5) | (66.4) |
Interest expense | 26.1 | 29 |
(Gain) loss on foreign currency exchange | 0 | (0.4) |
Other expense, net | 13.6 | 5.3 |
Loss before income taxes | (97.2) | (100.3) |
Income tax benefit | (22.3) | (20.2) |
Equity in net income (loss) of subsidiaries | 47.6 | 46 |
Net loss | (27.3) | (34.1) |
Guarantor Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net sales | 1,245.7 | 1,408.8 |
Cost of sales | 1,058.3 | 1,194.3 |
Gross profit | 187.4 | 214.5 |
Selling, general, and administrative expense | 102 | 136 |
Amortization expense | 16 | 16.9 |
Other operating expense, net | 9.1 | 10 |
Operating loss | 60.3 | 51.6 |
Interest expense | 0 | 0 |
(Gain) loss on foreign currency exchange | (0.4) | 2.1 |
Other expense, net | 0.2 | (0.2) |
Loss before income taxes | 60.5 | 49.7 |
Income tax benefit | 9.7 | 9.2 |
Equity in net income (loss) of subsidiaries | (3.2) | 5.5 |
Net loss | 47.6 | 46 |
Non-Guarantor Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net sales | 152.7 | 177.2 |
Cost of sales | 145.5 | 159.8 |
Gross profit | 7.2 | 17.4 |
Selling, general, and administrative expense | 8.4 | 8.9 |
Amortization expense | 2.2 | 2.3 |
Other operating expense, net | 0.3 | 0.1 |
Operating loss | (3.7) | 6.1 |
Interest expense | 0.8 | 1.4 |
(Gain) loss on foreign currency exchange | 0 | 0.8 |
Other expense, net | (1.6) | (2.8) |
Loss before income taxes | (2.9) | 6.7 |
Income tax benefit | 0.3 | 1.2 |
Equity in net income (loss) of subsidiaries | 0 | 0 |
Net loss | $ (3.2) | $ 5.5 |
Guarantor and Non-Guarantor F_6
Guarantor and Non-Guarantor Financial Information - Condensed Supplemental Consolidating Statement of Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net loss | $ (27.3) | $ (34.1) |
Other comprehensive income: | ||
Foreign currency translation adjustments | 6.8 | (10.1) |
Pension and postretirement reclassification adjustment, net of tax | 0.1 | 0.2 |
Adoption of ASU 2018-02 reclassification to retained earnings | 0 | (1.1) |
Other comprehensive income (loss) | 6.9 | (11) |
Equity in other comprehensive (loss) income of subsidiaries | 0 | 0 |
Comprehensive loss | (20.4) | (45.1) |
Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net loss | (44.4) | (51.5) |
Other comprehensive income: | ||
Foreign currency translation adjustments | 0 | 0 |
Pension and postretirement reclassification adjustment, net of tax | 0 | 0 |
Adoption of ASU 2018-02 reclassification to retained earnings | 0 | |
Other comprehensive income (loss) | 0 | 0 |
Equity in other comprehensive (loss) income of subsidiaries | (13.7) | 20 |
Comprehensive loss | (58.1) | (31.5) |
Parent Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net loss | (27.3) | (34.1) |
Other comprehensive income: | ||
Foreign currency translation adjustments | 0 | 0 |
Pension and postretirement reclassification adjustment, net of tax | 0 | 0 |
Adoption of ASU 2018-02 reclassification to retained earnings | 0 | |
Other comprehensive income (loss) | 0 | 0 |
Equity in other comprehensive (loss) income of subsidiaries | 6.9 | (9.9) |
Comprehensive loss | (20.4) | (44) |
Guarantor Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net loss | 47.6 | 46 |
Other comprehensive income: | ||
Foreign currency translation adjustments | 0 | 0 |
Pension and postretirement reclassification adjustment, net of tax | 0.1 | 0.2 |
Adoption of ASU 2018-02 reclassification to retained earnings | (1.1) | |
Other comprehensive income (loss) | 0.1 | (0.9) |
Equity in other comprehensive (loss) income of subsidiaries | 6.8 | (10.1) |
Comprehensive loss | 54.5 | 35 |
Non-Guarantor Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net loss | (3.2) | 5.5 |
Other comprehensive income: | ||
Foreign currency translation adjustments | 6.8 | (10.1) |
Pension and postretirement reclassification adjustment, net of tax | 0 | 0 |
Adoption of ASU 2018-02 reclassification to retained earnings | 0 | |
Other comprehensive income (loss) | 6.8 | (10.1) |
Equity in other comprehensive (loss) income of subsidiaries | 0 | 0 |
Comprehensive loss | $ 3.6 | $ (4.6) |
Guarantor and Non-Guarantor F_7
Guarantor and Non-Guarantor Financial Information - Condensed Supplemental Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net cash provided by (used in) operating activities | $ (37.9) | $ 57.8 |
Cash flows from investing activities: | ||
Additions to property, plant, and equipment | (29.9) | (38.5) |
Additions to intangible assets | (6.5) | (2.9) |
Intercompany transfer | 0 | 0 |
Other | (0.1) | (0.3) |
Net cash used in investing activities | (36.5) | (41.7) |
Cash flows from financing activities: | ||
Net (repayment) borrowing of debt | (10.4) | (3.8) |
Intercompany transfer | 0 | 0 |
Repurchases of common stock | 0 | (17.1) |
Receipts related to stock-based award activities | 0.2 | 1.9 |
Payments related to stock-based award activities | (4.6) | (1.1) |
Net cash used in financing activities | (14.8) | (20.1) |
Effect of exchange rate changes on cash and cash equivalents | 3.9 | (0.3) |
Net decrease in cash and cash equivalents | (85.3) | (4.3) |
Cash and cash equivalents, beginning of period | 164.3 | 132.8 |
Cash and cash equivalents, end of period | 79 | 128.5 |
Eliminations | ||
Cash flows from operating activities: | ||
Net cash provided by (used in) operating activities | (44.5) | (51.2) |
Cash flows from investing activities: | ||
Additions to property, plant, and equipment | 0 | 0 |
Additions to intangible assets | 0 | 0 |
Intercompany transfer | 33.3 | 85.6 |
Other | 0 | 0 |
Net cash used in investing activities | 33.3 | 85.6 |
Cash flows from financing activities: | ||
Net (repayment) borrowing of debt | 0 | 0 |
Intercompany transfer | 11.2 | (34.4) |
Repurchases of common stock | 0 | |
Receipts related to stock-based award activities | 0 | 0 |
Payments related to stock-based award activities | 0 | 0 |
Net cash used in financing activities | 11.2 | (34.4) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net decrease in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 |
Parent Company | ||
Cash flows from operating activities: | ||
Net cash provided by (used in) operating activities | (50) | 41.3 |
Cash flows from investing activities: | ||
Additions to property, plant, and equipment | 0 | (0.9) |
Additions to intangible assets | (6.4) | (2.5) |
Intercompany transfer | (21.5) | (42.8) |
Other | 0 | 0 |
Net cash used in investing activities | (27.9) | (46.2) |
Cash flows from financing activities: | ||
Net (repayment) borrowing of debt | (10) | (2.4) |
Intercompany transfer | 55.2 | 10.8 |
Repurchases of common stock | (17.1) | |
Receipts related to stock-based award activities | 0.2 | 1.9 |
Payments related to stock-based award activities | (4.6) | (1.1) |
Net cash used in financing activities | 40.8 | (7.9) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net decrease in cash and cash equivalents | (37.1) | (12.8) |
Cash and cash equivalents, beginning of period | 77.9 | 83.2 |
Cash and cash equivalents, end of period | 40.8 | 70.4 |
Guarantor Subsidiaries | ||
Cash flows from operating activities: | ||
Net cash provided by (used in) operating activities | 61.9 | 41.2 |
Cash flows from investing activities: | ||
Additions to property, plant, and equipment | (27.7) | (32.3) |
Additions to intangible assets | (0.1) | (0.4) |
Intercompany transfer | (11.8) | (43.3) |
Other | 0 | 0 |
Net cash used in investing activities | (39.6) | (76) |
Cash flows from financing activities: | ||
Net (repayment) borrowing of debt | (0.4) | (1.4) |
Intercompany transfer | (21.9) | 36.2 |
Repurchases of common stock | 0 | |
Receipts related to stock-based award activities | 0 | 0 |
Payments related to stock-based award activities | 0 | 0 |
Net cash used in financing activities | (22.3) | 34.8 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net decrease in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0.2 |
Cash and cash equivalents, end of period | 0 | 0.2 |
Non-Guarantor Subsidiaries | ||
Cash flows from operating activities: | ||
Net cash provided by (used in) operating activities | (5.3) | 26.5 |
Cash flows from investing activities: | ||
Additions to property, plant, and equipment | (2.2) | (5.3) |
Additions to intangible assets | 0 | 0 |
Intercompany transfer | 0 | 0.5 |
Other | (0.1) | (0.3) |
Net cash used in investing activities | (2.3) | (5.1) |
Cash flows from financing activities: | ||
Net (repayment) borrowing of debt | 0 | 0 |
Intercompany transfer | (44.5) | (12.6) |
Repurchases of common stock | 0 | |
Receipts related to stock-based award activities | 0 | 0 |
Payments related to stock-based award activities | 0 | 0 |
Net cash used in financing activities | (44.5) | (12.6) |
Effect of exchange rate changes on cash and cash equivalents | 3.9 | (0.3) |
Net decrease in cash and cash equivalents | (48.2) | 8.5 |
Cash and cash equivalents, beginning of period | 86.4 | 49.4 |
Cash and cash equivalents, end of period | $ 38.2 | $ 57.9 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event $ in Millions | May 02, 2019USD ($) |
Subsequent Event [Line Items] | |
Expected payments for restructuring | $ 4 |
Facility Closing | |
Subsequent Event [Line Items] | |
Expected Cost | 13 |
Non-Cash Write-Off | |
Subsequent Event [Line Items] | |
Expected Cost | 9 |
Severance | |
Subsequent Event [Line Items] | |
Expected Cost | 1 |
Other Costs | |
Subsequent Event [Line Items] | |
Expected Cost | $ 3 |
Uncategorized Items - ths-20190
Label | Element | Value |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | us-gaap_RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability | $ 252,500,000 |