Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 01, 2018 | Apr. 30, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Pinnacle Foods Inc. | |
Entity Central Index Key | 1,564,822 | |
Current Fiscal Year End Date | --12-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Apr. 1, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 119,171,745 |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
Income Statement [Abstract] | ||
Net sales | $ 778,832 | $ 766,074 |
Cost of products sold | 572,402 | 555,501 |
Gross profit | 206,430 | 210,573 |
Operating expenses | ||
Marketing and selling expenses | 49,227 | 55,594 |
Administrative expenses | 34,674 | 36,011 |
Research and development expenses | 4,764 | 4,021 |
Other expense, net | 2,865 | 4,230 |
Total operating (income) expenses | 91,530 | 99,856 |
Operating income | 114,900 | 110,717 |
Non-operating income | 801 | 491 |
Earnings before interest and taxes | 115,701 | 111,208 |
Interest expense | 41,894 | 80,731 |
Interest income | 212 | 15 |
Earnings before income taxes | 74,019 | 30,492 |
Provision for income taxes | 17,105 | 7,343 |
Net earnings | 56,914 | 23,149 |
Less: Net earnings attributable to non-controlling interest | 0 | 223 |
Net earnings attributable to Pinnacle Foods, Inc. and subsidiaries common shareholders | $ 56,914 | $ 22,926 |
Net earnings per share attributable to Pinnacle Foods, Inc. and subsidiaries common shareholders: | ||
Basic (in dollars per share) | $ 0.48 | $ 0.20 |
Weighted average shares outstanding- basic (in shares) | 118,496,215 | 117,623,753 |
Diluted (in dollars per share) | $ 0.48 | $ 0.19 |
Weighted average shares outstanding- diluted (in shares) | 119,812,732 | 119,331,548 |
Dividends declared (in dollars per share) | $ 0.325000 | $ 0.285000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 56,914 | $ 23,149 |
Foreign currency translation: | ||
Foreign currency translation adjustments, Pre-tax amount | (2,178) | 1,113 |
Foreign currency translation adjustments, Tax (expense) benefit | 0 | 0 |
Foreign currency translation adjustments, After-tax amount | (2,178) | 1,113 |
Cash-flow hedges: | ||
Unrealized gains (losses) arising during the period, Pre-tax amount | 13,605 | 495 |
Unrealized gains (losses) arising during the period, Tax (expense) benefit | (3,464) | (192) |
Unrealized gains (losses) arising during the period, After-tax amount | 10,141 | 303 |
Reclassification adjustment for (gains) losses included in net earnings, Pre-tax amount | (71) | 21,875 |
Reclassification adjustment for (gains) losses included in net earnings, Tax (expense) benefit | 17 | (8,351) |
Reclassification adjustment for (gains) losses included in net earnings, After-tax amount | (54) | 13,524 |
Pension: | ||
Reclassification of net actuarial loss included in net earnings, Pre-tax amount | 259 | 269 |
Reclassification of net actuarial loss included in net earnings, Tax (expense) benefit | (64) | (102) |
Reclassification of net actuarial loss included in net earnings, After-tax amount | 195 | 167 |
Other comprehensive earnings (loss), Pre-tax amount | 11,615 | 23,752 |
Other comprehensive earnings (loss), Tax (expense) benefit | (3,511) | (8,645) |
Net current period other comprehensive (loss)/income | 8,104 | 15,107 |
Total comprehensive earnings | 65,018 | 38,256 |
Less: Comprehensive earnings attributable to non-controlling interest | 0 | 223 |
Comprehensive earnings attributable to Pinnacle Foods Inc. and Subsidiaries | $ 65,018 | $ 38,033 |
Consolidated Balance Sheets (un
Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 77,684 | $ 249,828 |
Accounts receivable, net of allowances of $10,359 and $10,036, respectively | 301,218 | 281,622 |
Inventories | 477,342 | 489,806 |
Other current assets | 17,489 | 11,061 |
Total current assets | 873,733 | 1,032,317 |
Plant assets, net of accumulated depreciation of $545,125 and $566,202, respectively | 740,265 | 739,713 |
Tradenames | 2,463,255 | 2,463,374 |
Other assets, net | 169,398 | 164,899 |
Goodwill | 2,176,391 | 2,177,961 |
Total assets | 6,423,042 | 6,578,264 |
Current liabilities: | ||
Short-term borrowings | 1,566 | 2,739 |
Current portion of long-term obligations | 53,331 | 33,934 |
Accounts payable | 327,668 | 323,062 |
Accrued trade marketing expense | 41,060 | 38,975 |
Accrued liabilities | 129,466 | 122,131 |
Dividends payable | 40,884 | 40,470 |
Total current liabilities | 593,975 | 561,311 |
Long-term debt | 2,703,733 | 2,925,594 |
Pension and other postretirement benefits | 52,142 | 53,251 |
Other long-term liabilities | 33,885 | 34,037 |
Deferred tax liabilities | 632,941 | 623,833 |
Total liabilities | 4,016,676 | 4,198,026 |
Commitments and contingencies (Note 15) | ||
Shareholders' equity: | ||
Pinnacle preferred stock: $.01 per share, 50,000,000 shares authorized, none issued | 0 | 0 |
Pinnacle common stock: par value $.01 per share, 500,000,000 shares authorized; issued 120,186,810 and 120,018,215, respectively | 1,202 | 1,200 |
Additional paid-in-capital | 1,453,171 | 1,453,054 |
Retained earnings | 1,010,472 | 987,238 |
Accumulated other comprehensive loss | (27,475) | (30,250) |
Capital stock in treasury, at cost, 1,000,000 common shares | (32,110) | (32,110) |
Total Pinnacle Foods Inc. and subsidiaries shareholders' equity | 2,405,260 | 2,379,132 |
Non-controlling interest | 1,106 | 1,106 |
Total Equity | 2,406,366 | 2,380,238 |
Total liabilities and equity | $ 6,423,042 | $ 6,578,264 |
Consolidated Balance Sheets (u5
Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 10,359 | $ 10,036 |
Plant assets, accumulated depreciation | $ 545,125 | $ 566,202 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
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) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 120,186,810 | 120,018,215 |
Treasury shares (in shares) | 1,000,000 | 1,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
Cash flows from operating activities | ||
Net earnings | $ 56,914 | $ 23,149 |
Non-cash charges (credits) to net earnings | ||
Depreciation and amortization | 26,888 | 27,088 |
Amortization of debt acquisition costs and discount on term loan | 871 | 1,580 |
Recognition of deferred costs related to refinancing | 10,913 | 28,494 |
Change in value of financial instruments, including amounts reclassified from Accumulated Other Comprehensive Loss from settlement of hedges | 608 | 22,724 |
Equity-based compensation charges | 4,279 | 4,109 |
Pension expense, net of contributions | (914) | (634) |
Other long-term liabilities | (704) | (1,473) |
Foreign exchange losses/(gains) | 525 | (233) |
Deferred income taxes | 5,697 | 5,058 |
Changes in working capital | ||
Other liabilities - cash settlement of hedges related to refinancing | 0 | (20,722) |
Accounts receivable | (19,835) | (11,583) |
Inventories | 11,913 | (8,747) |
Accrued trade marketing expense | 2,020 | (5,220) |
Accounts payable | 20,915 | 28,680 |
Accrued liabilities | 3,601 | (27,328) |
Other current assets | (2,113) | (1,949) |
Net cash provided by operating activities | 121,578 | 62,993 |
Cash flows from investing activities | ||
Capital expenditures | (35,876) | (29,243) |
Proceeds from sale of plant assets | 0 | 679 |
Other investing | 608 | 0 |
Net cash used in investing activities | (35,268) | (28,564) |
Cash flows from financing activities | ||
Proceeds from bank term loans | 2,039,380 | 2,262,000 |
Repayments of long-term obligations | (2,250,359) | (2,465,700) |
Proceeds from short-term borrowings | 0 | 1,634 |
Repayments of short-term borrowings | (1,173) | (1,068) |
Repayment of capital lease obligations | (4,036) | (2,224) |
Dividends paid | (38,595) | (33,602) |
Net proceeds from issuance of common stock | 762 | 5,894 |
Taxes paid related to net share settlement of equity awards | (99) | (303) |
Debt acquisition costs | (4,145) | (12,810) |
Net cash used in financing activities | (258,265) | (246,179) |
Effect of exchange rate changes on cash | (189) | 128 |
Net change in cash and cash equivalents | (172,144) | (211,622) |
Cash and cash equivalents - beginning of period | 249,828 | 353,076 |
Cash and cash equivalents - end of period | 77,684 | 141,454 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 32,987 | 35,479 |
Interest received | 591 | 15 |
Income taxes paid | 1,747 | 2,512 |
Non-cash investing and financing activities: | ||
New capital leases | 4,909 | 4,822 |
Dividends payable | 40,884 | 35,600 |
Accrued additions to plant assets | $ 14,504 | $ 13,681 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (unaudited) - USD ($) $ in Thousands | Total | Total Shareholders' Equity | Common Stock | Treasury Stock | Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Non-Controlling Interest | |
Balance, beginning (in shares) at Dec. 25, 2016 | 119,127,269 | (1,000,000) | |||||||
Balance, beginning at Dec. 25, 2016 | $ 1,948,942 | $ 1,948,008 | $ 1,191 | $ (32,110) | $ 1,429,447 | $ 601,049 | $ (51,569) | $ 934 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Equity-based compensation plans (in shares) | 295,485 | ||||||||
Equity-based compensation plans | 9,701 | 9,701 | $ 3 | 9,698 | |||||
Dividends | [1] | (33,972) | (33,972) | (33,972) | |||||
Non-controlling interest in acquisition | 223 | 223 | |||||||
Comprehensive earnings | 38,256 | 38,256 | 23,149 | 15,107 | |||||
Balance, ending (in shares) at Mar. 26, 2017 | 119,422,754 | (1,000,000) | |||||||
Balance, ending at Mar. 26, 2017 | 1,963,150 | 1,961,993 | $ 1,194 | $ (32,110) | 1,439,145 | 590,226 | (36,462) | 1,157 | |
Balance, beginning (in shares) at Dec. 31, 2017 | 120,018,215 | (1,000,000) | |||||||
Balance, beginning at Dec. 31, 2017 | 2,380,238 | 2,379,132 | $ 1,200 | $ (32,110) | 1,453,054 | 987,238 | (30,250) | 1,106 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Equity-based compensation plans (in shares) | 168,595 | ||||||||
Equity-based compensation plans | 119 | 119 | $ 2 | 117 | |||||
Dividends | [2] | (39,009) | (39,009) | (39,009) | |||||
Comprehensive earnings | 65,018 | 65,018 | 56,914 | 8,104 | |||||
Balance, ending (in shares) at Apr. 01, 2018 | 120,186,810 | (1,000,000) | |||||||
Balance, ending at Apr. 01, 2018 | $ 2,406,366 | $ 2,405,260 | $ 1,202 | $ (32,110) | $ 1,453,171 | 1,010,472 | (27,475) | $ 1,106 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Reclassification of tax effects relating to U.S. tax reform | $ 5,329 | $ (5,329) | |||||||
[1] | $0.285 per share declared February 2017 | ||||||||
[2] | $0.325 per share declared February 2018 |
Consolidated Statements of Sha8
Consolidated Statements of Shareholders' Equity (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid (in dollars per share) | $ 0.325 | $ 0.285 |
Dividends declared per share (in dollars per share) | $ 0.325000 | $ 0.285000 |
Summary of Business Activities
Summary of Business Activities | 3 Months Ended |
Apr. 01, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Business Activities | Summary of Business Activities Business Overview Pinnacle Foods Inc. ("Pinnacle" or the "Company") is a leading manufacturer, marketer and distributor of high quality, branded convenience food products, the products and operations of which are managed and reported in four operating segments: (i) Frozen, (ii) Grocery, (iii) Boulder and (iv) Specialty. The Frozen segment is comprised of the retail businesses of the Company's frozen brands, including vegetables ( Birds Eye ), complete bagged meals ( Birds Eye Voila! and Birds Eye Signature Skillets ), full-calorie single-serve frozen dinners and entrées ( Hungry-Man ), prepared seafood ( Van de Kamp's and Mrs. Paul's ), frozen and refrigerated bagels ( Lender's ) and pizza for one ( Celeste ). The Frozen segment also includes all of the Company’s business in Canada, including those of the Garden Protein International and Boulder Brands acquisitions. The Grocery segment is comprised of the retail businesses of the Company's grocery brands, including cake/ brownie mixes and frostings ( Duncan Hines ), shelf-stable pickles ( Vlasic ), salad dressings ( Wish-Bone , Western and Bernstein’s ), table syrups ( Log Cabin and Mrs. Butterworth's ), refrigerated and shelf-stable spreads ( Smart Balance), canned meat ( Armour, Nalley and Brooks ), pie and pastry fillings ( Duncan Hines Comstock and Wilderness ), and barbecue sauces ( Open Pit ). The Boulder segment is comprised of the retail businesses of the Company's health and wellness lifestyle brands including gluten-free products ( Udi's and Glutino) , natural frozen meal offerings ( EVOL) , plant-based refrigerated and shelf-stable spreads ( Earth Balance ) and plant-based protein frozen products ( gardein ). The Specialty Foods segment includes the Company’s snack products ( Tim's Cascade and Snyder of Berlin ) and all of its U.S. foodservice and private label businesses, including those of the Garden Protein International and Boulder Brands acquisitions. History and Current Ownership On April 2, 2007, the Company was acquired by, and became a wholly owned subsidiary of, Peak Holdings LLC (“Peak Holdings”), an entity controlled by investment funds affiliated with The Blackstone Group L.P. (“Blackstone”). Blackstone owned, through Peak Holdings, approximately 98% of the common stock of the Company. As of the launch of our initial public offering on April 3, 2013 (the “IPO”), we were controlled by Blackstone. Effective September 12, 2014, as a result of Blackstone’s reduced ownership in the Company, we no longer qualified as a “controlled company” under applicable New York Stock Exchange listing standards. On May 8, 2015, Blackstone sold their final 5,000,000 shares in an underwritten public offering. Upon completion of the offering, Blackstone no longer beneficially owned any of the Company's outstanding common stock and subsequently resigned from the Company's Board of Directors. |
Interim Financial Statements
Interim Financial Statements | 3 Months Ended |
Apr. 01, 2018 | |
Interim Financial Statements [Abstract] | |
Interim Financial Statements | Interim Financial Statements Basis of Presentation In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting primarily of normal recurring adjustments) necessary for a fair statement of the Company’s financial position as of April 1, 2018 , the results of operations for the three months ended April 1, 2018 and March 26, 2017 , and the cash flows for the three months ended April 1, 2018 and March 26, 2017 . The results of operations are not necessarily indicative of the results to be expected for the full fiscal year. The accompanying unaudited consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto for the fiscal year ended December 31, 2017 . |
Acquisitions
Acquisitions | 3 Months Ended |
Apr. 01, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Acquisition of a frozen warehouse and vegetable packaging business (the "Beaver Dam acquisition") On December 15, 2017, the Company acquired a frozen warehouse and vegetable packaging business located in Beaver Dam, Wisconsin from Ryder Integrated Logistics, Inc. The cost of the acquisition was $37.5 million , which was paid in cash. Goodwill, which is not subject to amortization, has a book value of $10.7 million , all of which is deductible for tax purposes. The entire acquisition was allocated to the Frozen segment. Transaction costs of approximately $0.1 million incurred in connection with the acquisition were expensed as incurred and recorded in Other expense (income) in the Consolidated Statements of Operations. These costs primarily relate to legal and other professional fees. The following table summarizes the allocation of the total cost of the acquisition to the assets acquired: Assets acquired Land $ 700 Buildings 22,043 Plant assets 4,091 Goodwill 10,653 Total cost of acquisition $ 37,487 Unaudited pro forma revenue and net earnings related to the acquisition are not presented because the pro forma impact is not material. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Apr. 01, 2018 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue Recognition | Revenue recognition Effective January 1, 2018, the Company adopted Accounting Standards Update (ASU) No. 2014-09, "Revenue from Contracts with Customers," and all the related amendments (Accounting Standards Codification (ASC) 606) using the modified retrospective method of adoption. ASC 606 consists of a comprehensive revenue recognition standard, which requires the recognition of revenue when promised goods are transferred to customers in an amount that reflects the consideration to which the entity expects to be entitled. The Company recognizes revenue when obligations under the terms of a contract with its customer are satisfied; generally, this occurs with the transfer of control of its products. Revenue is measured as the amount of net consideration expected to be received in exchange for transferring products. Revenue from product sales is governed primarily by customer pricing and trade marketing agreements (see further discussion below) and related purchase orders (“contracts”) which specify shipping terms and certain aspects of the transaction price including rebates, discounts and other sales incentives, such as trade marketing programs and product introductory fees. Contracts are at standalone pricing. The performance obligation in these contracts is determined by each of the individual purchase orders and the respective stated quantities, with revenue being recognized at a point in time when obligations under the terms of the agreement are satisfied. This generally occurs with the transfer of control of our products to the customer and the product is shipped. Sales, value add, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. The Company's customers have an implicit and explicit right to return non-conforming products. A provision for payment discounts and product return allowances, which is estimated based upon the expected value method, is recorded as a reduction of sales in the same period that the revenue is recognized. Trade marketing expense, consisting primarily of customer pricing allowances and merchandising funds are offered through various programs to customers and are designed to promote our products. They include the cost of in-store product displays, feature pricing in retailers' advertisements and other temporary price reductions. These programs are offered to our customers both in fixed and variable (rate per case) amounts. The ultimate cost of these programs depends on retailer performance and is the subject of management estimates. Certain retailers require the payment of product introductory fees in order to obtain space for the Company's products on the retailer's store shelves. This cost is typically a lump sum and is determined using the expected value based on the contract between the two parties. Both trade marketing expense and product introductory fees are recognized as reductions of revenue at the time the transfer of control of the associated products occurs. Accruals for expected payouts under these programs are included as accrued trade marketing expense in the Consolidated Balance Sheet. Consumer coupon redemption expenses are costs from the redemption of coupons we circulate as part of our marketing efforts. They are also recognized as reductions of net sales when the coupons are issued. Estimates of coupon redemption costs are based upon programs offered, timing of those offers, estimated redemption/usage rates from historical performance and current economic trends. These obligations are included in accrued liabilities in the Consolidated Balance Sheet. The Company discloses revenue by reportable segment, geographical region and product type. A reconciliation of these disaggregated revenues is provided in Note 16 , Segments . The adoption of ASC 606 did not have a material impact on Pinnacle's consolidated results of operations for the three months ended April 1, 2018. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 01, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The authoritative guidance for financial assets and liabilities discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The guidance utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3: Unobservable inputs that reflect the Company’s assumptions. The Company’s financial assets and liabilities subject to recurring fair value measurements and the required disclosures are as follows: April 1, 2018 Fair Value Measurements Using Fair Value Hierarchy December 31, 2017 Fair Value Measurements Using Fair Value Hierarchy Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Interest rate derivatives $ 20,965 $ — $ 20,965 $ — $ 8,194 $ — $ 8,194 $ — Foreign currency derivatives 15 — 15 — — — — — Commodity derivatives 1,849 — 1,849 — 2,615 — 2,615 — Total assets at fair value $ 22,829 $ — $ 22,829 $ — $ 10,809 $ — $ 10,809 $ — Liabilities Interest rate derivatives $ — $ — $ — $ — $ — $ — $ — $ — Foreign currency derivatives 1 — 1 — 750 — 750 — Commodity derivatives 178 — 178 — 336 — 336 — Total liabilities at fair value $ 179 $ — $ 179 $ — $ 1,086 $ — $ 1,086 $ — The Company manages economic risks, including interest rate, liquidity and credit risk, primarily by managing the amount, sources and duration of its debt funding and the use of derivative financial instruments. The primary risks managed by using derivative instruments are interest rate risk, foreign currency exchange risk and commodity price risk. The valuations of these instruments are determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate, commodity, and foreign exchange forward curves. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash payments (or receipts) and the discounted expected variable cash receipts (or payments). The variable cash receipts (or payments) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. To comply with the provisions of the authoritative guidance for fair value disclosure, the Company incorporates credit valuation adjustments to appropriately reflect both its own non-performance risk and the respective counterparty’s non-performance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of non-performance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees. Other than the Tradename discussed below, the Company had no fair value measurements based upon significant unobservable inputs (Level 3) as of April 1, 2018 or December 31, 2017 . In addition to the instruments named above, the Company also makes fair value measurements in connection with any goodwill and tradename impairment testing. These measurements fall into Level 3 of the fair value hierarchy. |
Other Expense, net
Other Expense, net | 3 Months Ended |
Apr. 01, 2018 | |
Other Income and Expenses [Abstract] | |
Other Expense, net | Other Expense, net Other Expense (Income), net Three months ended April 1, March 26, Other expense, net consists of: Amortization of intangibles/other assets $ 2,328 $ 4,542 Foreign exchange losses/(gains) 525 (233 ) Royalty income and other 12 (79 ) Total other expense, net $ 2,865 $ 4,230 Foreign exchange gains. These represent foreign exchange gains from intra-entity loans resulting from the Company's November 2014 Garden Protein acquisition that are anticipated to be settled in the foreseeable future. |
Equity-Based Compensation Expen
Equity-Based Compensation Expense and Earnings Per Share | 3 Months Ended |
Apr. 01, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity-Based Compensation Expense and Earnings Per Share | Equity-Based Compensation Expense and Earnings Per Share Equity-based Compensation The Company currently grants equity awards under the Amended and Restated 2013 Omnibus Incentive Plan (the “Incentive Plan”). Equity-based compensation expense recognized during the period is based on the fair value of the portion of equity-based payment awards that is ultimately expected to vest during the period. As equity-based compensation expense recognized in the Consolidated Statements of Operations is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. The authoritative guidance for equity-based compensation requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Expense Information The following table summarizes equity-based compensation expense which was allocated as follows: Three months ended April 1, 2018 March 26, 2017 Cost of products sold $ 606 $ 515 Marketing and selling expenses 509 1,167 Administrative expenses 2,987 2,307 Research and development expenses 177 120 Pre-tax equity-based compensation expense 4,279 4,109 Income tax benefit (851 ) (1,561 ) Net equity-based compensation expense $ 3,428 $ 2,548 Amended and Restated 2013 Omnibus Incentive Plan In connection with the IPO, the Company adopted an equity incentive plan (the “2013 Omnibus Incentive Plan”) providing for the issuance of up to 11,300,000 shares of common stock. On May 25, 2016, the Company’ shareholders approved the Company’s Amended and Restated 2013 Omnibus Incentive Plan (the “Amended and Restated Omnibus Incentive Plan”). Awards granted under this plan include equity options, non-vested shares and restricted stock units ("RSU's"), the majority of which vest in full three years from the date of grant. The Company also grants nonvested performance shares ("PS's") and performance share units ("PSU's") both of which vest based on achievement of total shareholder return performance goals. Under the program, awards of PS's and PSU's will be earned by comparing the company's total shareholder return during a three-year period to the respective total shareholder returns of companies in a performance peer group. Based upon the company's ranking in the performance peer group, a recipient of PS's or PSU's may earn a total award ranging from 0% to 200% of the initial grant. During the first quarter of 2018, as part of our ongoing equity compensation program: • We granted 439,110 nonqualified stock options with grant date fair values of $10.06 and exercise prices of $54.10 using the BlackScholes pricing method to value the awards. • We granted 141,628 PSU's with grant date fair values of $60.30 using the Monte Carlo simulation model to value the awards. • We granted 185,241 RSU's with grant date fair values of $55.29 , which was the average closing price of our stock on the dates of grant. Earnings Per Share Basic earnings per common share is computed by dividing net earnings or loss for common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share are calculated by dividing net earnings by weighted-average common shares outstanding during the period plus dilutive potential common shares, which are determined as follows: Three months ended April 1, 2018 March 26, 2017 Weighted-average common shares 118,496,215 117,623,753 Effect of dilutive securities: 1,316,517 1,707,795 Dilutive potential common shares 119,812,732 119,331,548 Dilutive potential common shares are calculated in accordance with the treasury stock method, which assumes that proceeds from the exercise of all options are used to repurchase common stock at market value. The amount of shares remaining after the proceeds are exhausted represents the potentially dilutive effect of the securities. For the three months ended April 1, 2018 , and March 26, 2017 conversion of securities totaling 318,583 , and 20,904 , respectively, into common share equivalents were excluded from this calculation as their effect would have been anti-dilutive. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Apr. 01, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of Accumulated other comprehensive loss consist of the following: Currency translation adjustments Gains (Losses) on cash flow hedges Change in pensions Total Balance, December 31, 2017 $ 2,095 $ 6,571 $ (38,916 ) $ (30,250 ) Other comprehensive (loss)/income before reclassification (2,178 ) 10,141 — 7,963 Amounts reclassified from accumulated other comprehensive loss — (54 ) 195 141 Net current period other comprehensive (loss)/income (2,178 ) 10,087 195 8,104 Adoption of ASU 2018-02 — 1,088 (6,417 ) (5,329 ) Balance, April 1, 2018 $ (83 ) $ 17,746 $ (45,138 ) $ (27,475 ) Currency translation adjustments Gains (Losses) on cash flow hedges Change in pensions Total Balance, December 25, 2016 $ (3,989 ) $ (8,234 ) $ (39,346 ) $ (51,569 ) Other comprehensive loss before reclassification 1,113 303 — 1,416 Amounts reclassified from accumulated other comprehensive loss — 13,524 167 13,691 Net current period other comprehensive (loss)/income 1,113 13,827 167 15,107 Balance, March 26, 2017 $ (2,876 ) $ 5,593 $ (39,179 ) $ (36,462 ) The following table presents amounts reclassified out of Accumulated Other Comprehensive Loss ("AOCL") and into Net earnings for the three months ended April 1, 2018 and March 26, 2017 , respectively. Amounts Reclassified from AOCL Three months ended Details about Accumulated Other Comprehensive Loss Components April 1, 2018 March 26, 2017 Reclassified from AOCL to: Gains and (losses) on financial instrument contracts Interest rate contracts $ 145 $ (21,774 ) Interest expense Foreign exchange contracts (74 ) (101 ) Cost of products sold Total pre-tax 71 (21,875 ) Tax (expense) benefit (17 ) 8,351 Provision for income taxes Net of tax 54 (13,524 ) Pension actuarial assumption adjustments Amortization of actuarial loss (259 ) (269 ) (a) Cost of products sold Tax benefit 64 102 Provision for income taxes Net of tax (195 ) (167 ) Net reclassifications into net earnings $ (141 ) $ (13,691 ) (a) This is included in the computation of net periodic pension cost (see Note 13 for additional details). |
Balance Sheet Information
Balance Sheet Information | 3 Months Ended |
Apr. 01, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Information | Balance Sheet Information Accounts Receivable. Customer accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for cash discounts, returns and bad debts is the Company's best estimate of these amounts. The Company determines the allowance based on historical discounts taken and write-off experience. The Company reviews its allowance for doubtful accounts quarterly. Account balances are charged off against the allowance when the Company concludes it is probable the receivable will not be recovered. The Company does not have any off-balance sheet credit exposure related to its customers. Accounts receivable are as follows: April 1, December 31, 2017 Customers $ 300,735 $ 280,086 Allowances for cash discounts, bad debts and returns (10,359 ) (10,036 ) Subtotal 290,376 270,050 Other receivables 10,842 11,572 Total $ 301,218 $ 281,622 Inventories. Inventories are as follows: April 1, December 31, Raw materials $ 86,078 $ 78,567 Work in progress (1) 47,878 65,800 Finished product 343,386 345,439 Total $ 477,342 $ 489,806 (1) Work in progress is primarily agricultural inventory. The Company has various purchase commitments for raw materials and certain finished products within the ordinary course of business. Such commitments are not at prices in excess of current market prices. Plant Assets. Plant assets are as follows: April 1, 2018 December 31, 2017 Land $ 15,648 $ 15,648 Buildings 327,384 327,501 Machinery and equipment 879,320 898,728 Projects in progress 63,038 64,038 Subtotal 1,285,390 1,305,915 Accumulated depreciation (545,125 ) (566,202 ) Total $ 740,265 $ 739,713 Depreciation was $24.6 million and $22.5 million during the three months ended April 1, 2018 and March 26, 2017 , respectively. As of April 1, 2018 and December 31, 2017 , Plant Assets included assets under capital lease with a book value of $47.6 million and $44.6 million (net of accumulated depreciation of $19.5 million and $18.6 million ), respectively. Accrued Liabilities. Accrued liabilities are as follows: April 1, December 31, Employee compensation and benefits $ 43,105 $ 39,699 Interest payable 16,317 19,254 Consumer coupons 3,924 2,400 Accrued restructuring charges (Note 11) 370 1,414 Accrued financial instrument contracts (Note 14) 90 988 Accrued broker commissions 6,958 6,994 Accrued income taxes 36,266 26,805 Other 22,436 24,577 Total $ 129,466 $ 122,131 Other Long-Term Liabilities. Other long-term liabilities are as follows: April 1, December 31, Employee compensation and benefits $ 14,354 $ 14,197 Long-term rent liability and deferred rent allowances 5,915 6,217 Liability for uncertain tax positions 11,003 11,140 Accrued financial instrument contracts (Note 14) 89 98 Other 2,524 2,385 Total $ 33,885 $ 34,037 |
Goodwill, Tradenames and Other
Goodwill, Tradenames and Other Assets | 3 Months Ended |
Apr. 01, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Tradenames and Other Assets | Goodwill, Tradenames and Other Assets Goodwill Goodwill by segment is as follows: Frozen Grocery Boulder Specialty Total Balance, December 31, 2017 $ 764,824 $ 860,972 $ 364,883 $ 187,282 $ 2,177,961 Foreign currency adjustment (1,570 ) — — (1,570 ) Balance, April 1, 2018 $ 763,254 $ 860,972 $ 364,883 $ 187,282 $ 2,176,391 The authoritative guidance for business combinations requires that all business combinations be accounted for at fair value under the acquisition method of accounting. The authoritative guidance for goodwill provides that goodwill will not be amortized, but will be tested for impairment on an annual basis or more often when events indicate. The Company completed its annual testing in the third quarter of 2017, which indicated no impairment. Tradenames Tradenames by segment are as follows: Frozen Grocery Boulder Specialty Total Balance, December 31, 2017 $ 738,344 $ 1,253,622 $ 442,808 $ 28,600 $ 2,463,374 Foreign currency adjustment (119 ) — — — (119 ) Balance, April 1, 2018 $ 738,225 $ 1,253,622 $ 442,808 $ 28,600 $ 2,463,255 The authoritative guidance for indefinite-lived assets provides that indefinite-lived assets will not be amortized, but will be tested for impairment on an annual basis or more often when events indicate. Upon completion of the annual testing in the third quarter of 2017, the Company recorded tradename impairments of $24.8 million on Celeste, $6.5 million on Snyder of Berlin, $4.2 million on Nalley, $3.1 million on Bernstein and $0.5 million on Swanson. Celeste and Swanson are reported in the Frozen segment, Nalley and Bernstein are reported in the Grocery segment, and Snyder of Berlin is reported in the Specialty segment. These charges were the result of the Company's reassessment of the long-term sales projections for the brands during our annual planning cycle which occurs during the third quarter each year as well as a 50 basis point increase in the weighted average cost of capital assumed in the calculation. The total carrying value of these five tradenames as of April 1, 2018 is $25.4 million . As a result of the Exit (as defined in Note 11) in the second quarter of 2017, the Company recorded a tradename impairment charge of $27.4 million on the related tradename, which resulted in a carrying value of $0 . The charge is reported in the Frozen segment. See Note 11 for further details. To estimate the fair value of our Tradenames we use the relief from royalty method, which utilizes forecasted discounted cash flows to estimate the fair value. The utilization of this method requires us to make significant assumptions including sales growth rates, implied royalty rates and discount rates. As of April 1, 2018 , we identified an additional three tradenames which do not have a fair value that exceeded their carrying value by at least 15% . The total carrying value of these tradenames as of April 1, 2018 is $359.3 million . Other Assets April 1, 2018 Weighted Avg Life Gross Carrying Amount Accumulated Amortization Net Amortizable intangibles Recipes 10 $ 51,498 $ (46,636 ) $ 4,862 Customer relationships - Distributors 34 176,372 (61,455 ) 114,917 Customer relationships - Food Service 10 11,400 (4,374 ) 7,026 Total amortizable intangibles $ 239,270 $ (112,465 ) $ 126,805 Financial instruments (see Note 14) 15,859 — 15,859 Other (1) 31,786 (5,052 ) 26,734 Total other assets, net $ 169,398 Amortizable intangibles by segment Frozen $ 38,630 Grocery 46,199 Boulder 32,416 Specialty 9,560 $ 126,805 December 31, 2017 Weighted Avg Life Gross Carrying Amount Accumulated Amortization Net Amortizable intangibles Recipes 10 $ 51,514 $ (46,458 ) $ 5,056 Customer relationships - Distributors 34 176,376 (59,681 ) 116,695 Customer relationships - Food Service 10 11,400 (4,004 ) 7,396 Customer relationships - Private Label 7 1,290 (1,290 ) — Total amortizable intangibles $ 240,580 $ (111,433 ) $ 129,147 Financial instruments (see Note 14) 8,160 — 8,160 Other (1) 32,607 (5,015 ) 27,592 Total other assets, net $ 164,899 Amortizable intangibles by segment Frozen $ 39,229 Grocery 46,888 Boulder 33,057 Specialty 9,973 $ 129,147 (1) As of April 1, 2018 and December 31, 2017 , Other primarily consists of cost basis investments in companies in the natural and organic food and beverage industries acquired through the Boulder Brands acquisition as well as security deposits, supplemental savings plan investments and debt acquisition costs associated with the Company's revolving credit facility. Amortization of intangible assets was $2.3 million for the three months ended April 1, 2018 . Amortization of intangible assets was $4.5 million for the three months ended March 26, 2017 . Estimated amortization expense for each of the next five years and thereafter is as follows: remainder of 2018 - $7.0 million ; 2019 - $8.6 million ; 2020 - $7.9 million ; 2021 - $6.6 million ; 2022 - $6.4 million and thereafter - $90.2 million . |
Restructuring Charges
Restructuring Charges | 3 Months Ended |
Apr. 01, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges Aunt Jemima retail and foodservice frozen breakfast products exit (the "Exit") On May 8, 2017, in connection with the Company's ongoing portfolio strategic assessment and margin roadmap, it exited certain low-margin and non-strategic Aunt Jemima retail and foodservice frozen breakfast products following the Company's voluntary recall discussed in Note 15. This decision resulted in restructuring charges primarily related to accelerated depreciation, asset impairment, charges to adjust inventory to net realizable value, workforce reductions and other charges. These actions and the associated charges detailed below are substantially complete. In the second quarter of 2017, the Company recorded $63.2 million of charges related to the Exit which consisted of intangible asset impairment charges of $31.2 million , accelerated depreciation charges of $22.6 million , charges to adjust inventory to net realizable value of $4.6 million and employee termination costs of $1.5 million . In addition, the Company also recorded $3.3 million of contract termination and other fees during the same time period. The net impact on 2017 pre-tax earnings of $63.2 million is included in the various lines of the Consolidated Statement of Operations as follows: $32.0 million in Cost of products sold, $27.4 million of Tradename impairment charges and accelerated amortization charges of $3.8 million in Other expense related to frozen breakfast products customer relationships. Of the total charges, $48.8 million is recorded in the Frozen segment and $14.4 million in the Specialty segment. The following table summarizes charges accrued as of April 1, 2018 related to the Exit. These amounts are recorded in our Consolidated Balance Sheet in Accrued Liabilities. Balance Balance Description December 31, 2017 Expense Payments April 1, 2018 Accrued restructuring charges $ 1,126 $ — $ (756 ) $ 370 |
Debt and Interest Expense
Debt and Interest Expense | 3 Months Ended |
Apr. 01, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Interest Expense | Debt and Interest Expense April 1, December 31, Short-term borrowings - Notes payable $ 1,566 $ 2,739 Total short-term borrowings $ 1,566 $ 2,739 Long-term debt - Tranche A Term Loans due 2023 $ 790,000 $ — - New Tranche B Term Loans due 2024 1,239,380 — - Tranche B Term Loans due 2024 — 2,239,380 - 4.875% Senior Notes due 2021 350,000 350,000 - 5.875% Senior Notes due 2024 350,000 350,000 - 3.0% Note payable to Gilster Mary Lee Corporation — 982 - Unamortized discount on long term debt and deferred financing costs (14,209 ) (21,846 ) - Capital lease obligations 41,893 41,012 2,757,064 2,959,528 Less: current portion of long-term obligations 53,331 33,934 Total long-term debt $ 2,703,733 $ 2,925,594 Interest expense Three months ended April 1, March 26, Interest expense $ 30,255 $ 28,883 Amortization of debt acquisition costs 871 1,580 Non-cash recognition of deferred costs related to refinancing 10,913 28,494 Settlement of hedges related to refinancing — 20,722 Interest rate swap (gains)/losses (145 ) 1,052 Total interest expense $ 41,894 $ 80,731 Fourth Amended and Restated Credit Agreement On March 15, 2018, Pinnacle Foods Finance LLC, (1) entered into the First Amendment to the Third Amended and Restated Credit Agreement, which provided for both a six year term loan facility in the amount of $1,239.4 million (the "New Tranche B Term Loans") and a five year term loan facility in the amount of $800.0 million (the "Tranche A Term Loans") (together, the "Term Loans") (2) replaced the existing revolving credit facility with a new five year $300.0 million revolving credit facility, and (3) amended and restated the existing credit agreement (the "Fourth Amended and Restated Credit Agreement") in its entirety to make certain other amendments and modifications (the "2018 Refinancing"). As a result of the 2018 Refinancing, Pinnacle Foods Finance LLC used the proceeds from the New Tranche B Term Loans and Tranche A Term Loans and $202.5 million of cash on hand to repay all existing indebtedness, including all outstanding accrued interest and fees, under the then existing Third Amended and Restated Credit Agreement, consisting of $2,239.4 million of Tranche B Term Loans. In connection with the 2018 Refinancing, Pinnacle Foods Finance LLC incurred $4.1 million of debt acquisition costs, which were recorded as a reduction of the carrying value of debt. Pinnacle Foods Finance LLC also incurred a non-cash charge of $10.9 million related to existing debt acquisition costs. Third Amended and Restated Credit Agreement On February 3, 2017, Pinnacle Foods Finance LLC, (1) entered into the Fifth Amendment to the Second Amended and Restated Credit Agreement, which provided for a seven year term loan facility in the amount of $2,262.0 million (the "Tranche B Term Loans"), (2) replaced the existing revolving credit facility with a new five year $225.0 million revolving credit facility, and (3) amended and restated the existing credit agreement (the "Third Amended and Restated Credit Agreement") in its entirety to make certain other amendments and modifications (the "2017 Refinancing"). As a result of the 2017 Refinancing, Pinnacle Foods Finance LLC used the proceeds from the Tranche B Term Loans and $213.1 million of cash on hand to repay all existing indebtedness outstanding under the then existing Third Amended and Restated Credit Agreement, consisting of (a) $1,409.6 million of Tranche G Term Loans, (b) $507.9 million of Tranche H Term Loans and (c) $544.5 million of Tranche I Term Loans. In connection with the 2017 Refinancing, Pinnacle Foods Finance LLC incurred $12.9 million of debt acquisition costs, which were recorded as a reduction of the carrying value of debt. Pinnacle Foods Finance LLC also incurred a non-cash charge of $28.5 million related to existing debt acquisition costs. The Company's borrowings under the March 15, 2018 Fourth Amended and Restated Credit Agreement bear interest at a floating rate and are maintained as base rate loans or as eurocurrency rate loans. Base rate loans bear interest at the base rate plus the applicable base rate margin. The base rate is defined as the highest of (i) the administrative agent's prime rate, (ii) the federal funds effective rate plus 1/2 of 1.00%, (iii) the eurocurrency rate that would be payable on such day for a eurocurrency rate loan with a one-month interest period plus 1.00% , and (iv) 1.00% per annum. Eurocurrency rate loans bear interest at the adjusted eurocurrency rate plus the applicable eurocurrency rate margin. The eurocurrency rate is determined by the administrative agent to be the offered rate which appears on the page of the Reuters Screen which displays the London interbank offered rate administered by ICE Benchmark Administration Limited (the "LIBO Rate") for deposits. With respect to the New Tranche B Term Loans, the base rate shall be no less than 1.0% and the base rate margin is 0.75% . Further, the eurocurrency rate shall be no less than 0.0% and the eurocurrency rate margin is 1.75% . With respect to the Tranche A Term Loans, the base rate shall be no less than 1.0% . The base rate margin is 0.50% when the Company's Total Leverage Ratio is less than or equal to 3.75 :1.00, 0.625% when the Total Leverage Ratio is less than or equal to 5.00 :1.00 but greater than 3.75 :1.00, and 0.75% when the Total Leverage Ratio is greater than 5.00 :1.00. The Total Leverage Ratio is calculated by dividing consolidated total debt less the aggregate amount of all unrestricted cash and cash equivalents by Covenant Compliance EBITDA.The eurocurrency rate shall be no less than 0.0% . The eurocurrency rate margin is 1.50% when the Company's Total Leverage Ratio is less than or equal to 3.75 :1.00, 1.625% when the Total Leverage Ratio is less than or equal to 5.00 :1.00 but greater than 3.75 :1.00 and 1.75% when the Total Leverage Ratio is greater than 5.00 :1.00. The obligations under the Fourth Amended and Restated Credit Agreement are unconditionally and irrevocably guaranteed by Peak Finance Holdings LLC, any subsidiary of Peak Finance Holdings LLC that directly or indirectly owns 100% of the issued and outstanding equity interests of Pinnacle Foods Finance LLC, subject to certain exceptions, each of Pinnacle Foods Finance LLC's direct or indirect material wholly-owned domestic subsidiaries (collectively, the "Guarantors"). A commitment fee of 0.30% per annum is applied to the unused portion of the revolving credit facility. Pinnacle Foods Finance LLC pays a fee for all outstanding letters of credit drawn against the revolving credit facility at an annual rate equivalent to the applicable eurocurrency rate margin then in effect under the revolving credit facility, plus the fronting fee payable in respect of the applicable letter of credit. The fronting fee is equal to 0.125% per annum of the daily maximum amount then available to be drawn under such letter of credit. The fronting fees are computed on a quarterly basis in arrears. Total letters of credit issued under the revolving credit facility cannot exceed $50.0 million. Under the terms of the Fourth Amended and Restated Credit Agreement, Pinnacle Foods Finance LLC is required to use 50% of its "Excess Cash Flow" to prepay the Term Loans under the Senior Secured Credit Facility (which percentage will be reduced to 25% at a total net leverage ratio of between 4.50 and 5.49 and to 0% at a total net leverage ratio below 4.50 ). Excess Cash Flow is defined as consolidated net income (as defined), as adjusted for certain items, including (1) all non-cash charges and credits included in arriving at consolidated net income, (2) changes in working capital, (3) capital expenditures (to the extent they were not financed with debt), (4) the aggregate amount of principal payments on indebtedness and (5) certain other items defined in the Senior Secured Credit Facility. No scheduled repayments of the New Tranche B Term Loans shall be required prior to the maturity date. The Tranche A Term Loans amortize in quarterly installments of 1.25% of their aggregate funded total principal amount. The scheduled principal payments of the Tranche A Term Loans outstanding as of April 1, 2018 are $20.0 million in 2018, $40.0 million in 2019, $40.0 million in 2020, $40.0 million in 2021, $40.0 million in 2022, and $610.0 million in 2023. Pursuant to the terms of the Senior Secured Credit Facility, Pinnacle Foods Finance LLC is required to maintain a ratio of Net First Lien Secured Debt to Adjusted EBITDA of no greater than 5.75 to 1.00. Net First Lien Secured Debt is defined as aggregate consolidated secured indebtedness, less the aggregate amount of all unrestricted cash and cash equivalents. In addition, under the Senior Secured Credit Facility and the indenture governing the Senior Notes, Pinnacle Foods Finance LLC's ability to engage in activities such as incurring additional indebtedness, making investments and paying dividends is tied to the Senior Secured Leverage Ratio (which is currently the same as the ratio of Net First Lien Secured Debt to Adjusted EBITDA described above), in the case of the Senior Secured Credit Facility, or to the ratio of Adjusted EBITDA to fixed charges for the most recently concluded four consecutive fiscal quarters, in the case of the Senior Notes. The Senior Secured Credit Facility also permits restricted payments up to an aggregate amount of (together with certain other amounts) the greater of $75 million and 2% of Pinnacle Foods Finance LLC's consolidated total assets, so long as no default has occurred and is continuing and its pro forma Senior Secured Leverage Ratio would be no greater than 4.25 to 1.00. As of April 1, 2018 , the Company is in compliance with all covenants and other obligations under the Senior Secured Credit Facility and the indenture governing the Senior Notes. Senior Notes The Company's 4.875% Senior Notes due 2021 (the " 4.875% Senior Notes") and 5.875% Senior Notes (together the "Senior Notes") are general senior unsecured obligations of Pinnacle Foods Finance LLC, effectively subordinated to all existing and future senior secured indebtedness of Pinnacle Foods Finance LLC to the extent of the value of the assets securing that indebtedness and guaranteed on a full, unconditional, joint and several basis by Pinnacle Foods Finance LLC’s wholly-owned domestic subsidiaries that guarantee other indebtedness of Pinnacle Foods Finance LLC and by the Company. See Note 19 for Guarantor and Nonguarantor Financial Statements. Pinnacle Foods Finance LLC may redeem some or all of the 5.875% Senior Notes at any time prior to January 15, 2019 at a price equal to 100% of the principal amount of the 5.875% Notes redeemed plus the Applicable Premium as of, and accrued and unpaid interest to, the redemption date, subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date. The “Applicable Premium” is defined as the greater of (1) 1.0% of the principal amount of such 5.875% Senior Notes and (2) the excess, if any, of (a) the present value at such redemption date of (i) the redemption price of such 5.875% Senior Notes at January 15, 2019, plus (ii) all required interest payments due on such 5.875% Senior Notes through January 15, 2019 (excluding accrued but unpaid interest to the redemption date), computed using a discount rate equal to the treasury rate plus 50 basis points over (b) the principal amount of such 5.875% Senior Notes. Pinnacle Foods Finance LLC may redeem the 4.875% Senior Notes at the redemption prices listed below, if redeemed during the twelve-month period beginning on May 1st of each of the years indicated below: Year Percentage 2018 101.219% 2019 and thereafter 100.000% Pinnacle Foods Finance LLC may redeem the 5.875% Senior Notes at the redemption prices listed below, if redeemed during the twelve-month period beginning on January 15th of each of the years indicated below: Year Percentage 2019 104.406% 2020 102.938% 2021 101.469% 2022 and thereafter 100.000% In addition, until January 15, 2019 for the 5.875% Senior Notes, Pinnacle Foods Finance LLC may redeem up to 35% of the aggregate principal amount of the 5.875% Senior Notes at a redemption price equal to 100% of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to the redemption date, subject to the right of holders of the 5.875% Senior Notes of record on the relevant record date to receive interest due on the relevant interest payment date, with the net cash proceeds received by Pinnacle Foods Finance LLC from one or more equity offerings; provided that (i) at least 50% of the aggregate principal amount of the 5.875% Senior Notes originally issued under the indenture remains outstanding immediately after the occurrence of each such redemption and (ii) each such redemption occurs within 120 days of the date of closing of each such equity offering. Debt acquisition costs As part of the 2018 Refinancing, debt acquisition costs of $4.1 million were incurred and recorded as a reduction of the carrying value of debt during the three months ended April 1, 2018 while non-cash charges of $10.9 million related to existing debt acquisition costs were recognized in the period. All debt acquisition costs are amortized into interest expense over the life of the related debt using the effective interest method. Amortization of these costs were $ 0.9 million during the three months ended April 1, 2018 . Amortization of these costs were $ 1.5 million during the three months ended March 26, 2017 . The following summarizes debt acquisition cost activity during the three months ended April 1, 2018 : Gross Carrying Amount Accumulated Amortization Net Balance, December 31, 2017 $ 29,689 $ (7,843 ) $ 21,846 Additions 4,145 — 4,145 Amortization — (869 ) (869 ) Recognition of deferred costs resulting from the 2018 Refinancing (12,936 ) 2,023 (10,913 ) Balance, April 1, 2018 $ 20,898 $ (6,689 ) $ 14,209 Estimated fair value The estimated fair value of the Company’s long-term debt, including the current portion, as of April 1, 2018 , is as follows: April 1, 2018 Issue Face Value Fair Value Tranche A Term Loans 790,000 790,000 New Tranche B Term Loans 1,239,380 1,245,577 4.875% Senior Notes 350,000 350,875 5.875% Senior Notes 350,000 360,938 $ 2,729,380 $ 2,747,390 The estimated fair value of the Company’s long-term debt, including the current portion, as of December 31, 2017 , is as follows: December 31, 2017 Issue Face Value Fair Value Tranche B Term Loans $ 2,239,380 $ 2,259,534 3.0% Note payable to Gilster Mary Lee Corporation 982 982 4.875% Senior Notes 350,000 353,938 5.875% Senior Notes 350,000 370,125 $ 2,940,362 $ 2,984,579 The estimated fair values of the Company's long-term debt are classified as Level 2 in the fair value hierarchy. The fair value is based on the quoted market price for such notes and loans and borrowing rates currently available to the Company for notes and loans with similar terms and maturities. |
Pension and Retirement Plans
Pension and Retirement Plans | 3 Months Ended |
Apr. 01, 2018 | |
Retirement Benefits, Description [Abstract] | |
Pension and Retirement Plans | Pension and Retirement Plans The Company accounts for pension and retirement plans in accordance with the authoritative guidance for retirement benefit compensation . This guidance requires recognition of the funded status of a benefit plan in the statement of financial position. The guidance also requires recognition in accumulated other comprehensive earnings of certain gains and losses that arise during the period but are deferred under pension accounting rules. The Company maintains a defined benefit plan, the Pinnacle Foods Group LLC Pension Plan (the "Plan"), which is frozen for future benefit accruals. The Company also has two 401(k) plans, three non-qualified supplemental savings plans and the Company participates in a multi-employer defined benefit plan. Pinnacle Foods Group LLC Pension Plan The Plan covers eligible employees and provides benefits generally based on years of service and employees’ compensation. The Plan is frozen for future benefits and is funded in conformity with the funding requirements of applicable government regulations. The Plan assets consist principally of cash equivalents, equity and fixed income common collective trusts. The Plan assets do not include any of the Company’s equity or debt securities. The following represents the components of net periodic (benefit): Three months ended Pension Benefits April 1, March 26, Interest cost 1,871 1,993 Expected return on assets (2,930 ) (2,753 ) Amortization of actuarial loss 259 269 Net periodic (benefit) $ (801 ) $ (491 ) As noted in Note 18 , Recently Issued Accounting Pronouncements, we adopted guidance on the presentation of net periodic pension and postretirement benefit cost during the first quarter of fiscal year 2018. The amendments require that non-service related costs are presented outside of operating income in "Non-operating income." Cash Flows Contributions. The Company made no contributions during the first quarter of 2018, but plans to make contributions of $7.0 million in fiscal 2018 . The Company made contributions to the Plan totaling $0.3 million in fiscal 2017 . Multi-employer Plans The Company contributes to the United Food and Commercial Workers International Union Industry Pension Fund (EIN 51-6055922) (the "UFCW Plan") under the terms of the collective-bargaining agreement with its Fort Madison employees. For the three months ended April 1, 2018 and March 26, 2017 contributions to the UFCW Plan were $0.2 million and $0.2 million , respectively. The contributions to this UFCW Plan are paid monthly based upon the number of employees. They represent less than 5% of the total contributions received by this UFCW Plan using available information during the most recent plan year. The risks of participating in multi-employer plans are different from single-employer plans in the following aspects: (a) assets contributed to a multi-employer plan by one employer may be used to provide benefits to employees of other participating employers, (b) if a participating employer stops contributing to the multi-employer plan, the unfunded obligations of the plan may be borne by the remaining participating employers and (c) if the Company chooses to stop participating in the plan, the Company may be required to pay a withdrawal liability based on the underfunded status of the plan. The UFCW Plan received a Pension Protection Act “green” zone status for the plan year ending June 30, 2017. The zone status is based on information the Company received from the UFCW Plan and is certified by the UFCW Plan's actuary. Among other factors, plans in the "green" zone are at least 80 percent funded. The UFCW Plan did not utilize any extended amortization provisions that affect its placement in the " green " zone. The UFCW Plan has never been required to implement a funding improvement plan nor is one pending at this time. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Apr. 01, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. The primary risks managed by using derivative instruments are interest rate risk, foreign currency exchange risk and commodity price risk. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates, foreign exchange rates or commodity prices. The Company manages interest rate risk based on the varying circumstances of anticipated borrowings and existing variable and fixed rate debt, including the Company’s revolving credit facility. Examples of interest rate management strategies include capping interest rates using targeted interest cost benchmarks, hedging portions of the total amount of debt, or hedging a period of months and not always hedging to maturity, and at other times locking in rates to fix interests costs. Certain parts of the Company’s foreign operations in Canada expose the Company to fluctuations in foreign exchange rates. The Company’s goal is to reduce its exposure to such foreign exchange risks on its foreign currency cash flows and fair value fluctuations on recognized foreign currency denominated assets, liabilities and unrecognized firm commitments to acceptable levels primarily through the use of foreign exchange-related derivative financial instruments. The Company enters into derivative financial instruments to protect the value or fix the amount of certain obligations in terms of its functional currency. The Company does not enter into these transactions for non-hedging purposes. The Company purchases raw materials in quantities expected to be used in a reasonable period of time in the normal course of business. The Company generally enters into agreements for either spot market delivery or forward delivery. The prices paid in the forward delivery contracts are generally fixed, but may also be variable within a capped or collared price range. Forward derivative contracts on certain commodities are entered into to manage the price risk associated with forecasted purchases of materials used in the Company’s manufacturing processes. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. During the three months ended April 1, 2018 and March 26, 2017 , such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. The 2017 Refinancing ( Note 12 ) resulted in significant changes to the Company's debt obligations. For the interest rate swaps in place at the time that were scheduled to mature between April 2017 and April 2020, it became probable that the associated original forecasted transactions would not occur. As such, the Company discontinued hedge accounting, accelerated the reclassification of amounts in Accumulated other comprehensive loss ("AOCL") and settled the interest rate swaps with the various counter parties. In the first quarter of 2017, these accelerated amounts resulted in a $20.7 million charge to interest expense ( $13.2 million , net of tax benefits). As of April 1, 2018 , the Company had the following interest rate swaps that were designated as cash flow hedges of interest rate risk: Product Number of Instruments Current Notional Amount Trade Dates Maturity Dates Interest Rate Swaps 14 $ 1,499,000 Feb 2017 - Jan 2018 Jan 2019 - Feb 2023 The changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in AOCL in the Consolidated Balance Sheets and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Amounts reported in AOCL related to derivatives will be reclassified to Interest expense as interest payments are made on the Company’s variable-rate debt. During the next twelve months, the Company estimates that an additional $6.4 million will be reclassified as a decrease to Interest expense. Cash Flow Hedges of Foreign Exchange Risk The Company’s operations in Canada expose the Company to changes in the U.S. Dollar – Canadian Dollar ("USD-CAD") foreign exchange rate. From time to time, the Company’s Canadian subsidiary purchases inventory denominated in U.S. Dollars ("USD"), a currency other than its functional currency. The subsidiary sells that inventory in Canadian dollars ("CAD"). The subsidiary uses currency forward and collar agreements to manage its exposure to fluctuations in the USD-CAD exchange rate. Currency forward agreements involve fixing the USD-CAD exchange rate for delivery of a specified amount of foreign currency on a specified date. Currency collar agreements involve the sale of CAD currency in exchange for receiving USD if exchange rates rise above an agreed upon rate and purchase of USD currency in exchange for paying CAD currency if exchange rates fall below an agreed upon rate at specified dates. As of April 1, 2018 , the Company had the following foreign currency exchange contracts (in aggregate) that were designated as cash flow hedges of foreign exchange risk: Product Number of Instruments Notional Purchased in Aggregate in USD Trade Date Maturity Dates CAD $ Contracts 9 $21,018 Jul 2017 May 2018 - Dec 2018 The changes in the fair value of derivatives designated that qualify as cash flow hedges of foreign exchange risk is recorded in AOCL in the Consolidated Balance Sheets and subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Amounts excluded from the assessment of hedge effectiveness, are recognized directly in Cost of products sold in the Consolidated Statements of Operations. During the next twelve months, the Company estimates that an additional $0.0 million will be reclassified as a decrease to Cost of Products Sold expense. Non-designated Hedges of Commodity Risk Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to commodity price risk but do not meet the authoritative guidance for hedge accounting. From time to time, the Company enters into commodity forward contracts to fix the price of diesel fuel, heating oil, natural gas and soybean oil purchases and other commodities at a future delivery date. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in Cost of products sold in the Consolidated Statements of Operations. As of April 1, 2018 , the Company had the following derivative instruments that were not designated in qualifying hedging relationships: Commodity Contracts Number of Instruments Notional Purchased in Aggregate in USD Trade Dates Maturity Dates Commodity Contracts 46 $7,383 Feb 2017 - Feb 2018 Apr 2018 - Dec 2019 The table below presents the fair value of the Company’s derivative financial instruments as well as their classification in the Consolidated Balance Sheets as of April 1, 2018 and December 31, 2017 . Tabular Disclosure of Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest Rate Contracts Other current assets $ 5,106 Accrued liabilities $ — Other assets, net 15,859 Other long-term liabilities — Foreign Exchange Contracts Other current assets 15 Accrued liabilities 1 Other assets, net — Other long-term liabilities — Total derivatives designated as hedging instruments $ 20,980 $ 1 Derivatives not designated as hedging instruments Commodity Contracts Other current assets $ 1,849 Accrued liabilities $ 89 Other assets, net — Other long-term liabilities 89 Total derivatives not designated as hedging instruments $ 1,849 $ 178 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest Rate Contracts Other current assets $ 34 Accrued liabilities $ — Other assets, net 8,160 Other long-term liabilities — Foreign Exchange Contracts Other current assets — Accrued liabilities 750 Total derivatives designated as hedging instruments $ 8,194 $ 750 Derivatives not designated as hedging instruments Commodity Contracts Other current assets $ 2,615 Accrued liabilities $ 238 Other assets, net — Other long-term liabilities 98 Total derivatives not designated as hedging instruments $ 2,615 $ 336 The Company has elected not to offset the fair values of derivative assets and liabilities executed with the same counterparty that are generally subject to enforceable netting agreements. However, if the Company were to offset and record the asset and liability balances of derivatives on a net basis, the amounts presented in the Consolidated Balance Sheets as of April 1, 2018 and December 31, 2017 would be adjusted as detailed in the following table: April 1, 2018 December 31, 2017 Derivative Instrument Gross Amounts Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Subject to Netting Agreements Net Amount Gross Amounts Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Subject to Netting Agreements Net Amount Total asset derivatives $ 22,829 (179 ) $ 22,650 $ 10,809 (1,086 ) $ 9,723 Total liability derivatives $ 179 (179 ) $ — $ 1,086 (1,086 ) $ — The table below presents the effect of the Company’s derivative financial instruments in the Consolidated Statements of Operations and AOCL for the three months ended April 1, 2018 and March 26, 2017 . Tabular Disclosure of the Effect of Derivative Instruments Gain/(Loss) Derivatives in Cash Flow Hedging Relationships Recognized in AOCL on Derivative Portion Reclassified from AOCL into Earnings Consolidated Statements of Operations Hedged Items impact Income/(Expense) related to Hedged Items Interest Rate Contracts $ 12,916 Interest expense $ 145 Interest expense $ (11,598 ) Foreign Exchange Contracts 689 Cost of products sold (74 ) Cost of products sold (6,997 ) Three months ended April 1, 2018 $ 13,605 $ 71 Interest Rate Contracts $ 239 Interest expense $ (21,774 ) (a) Interest expense $ (10,852 ) Foreign Exchange Contracts 256 Cost of products sold (101 ) Cost of products sold (6,718 ) Three months ended March 26, 2017 $ 495 $ (21,875 ) Derivatives Not Designated as Hedging Instruments Recognized in Earnings in: Recognized in Earnings Commodity Contracts Cost of products sold $ 381 Three months ended April 1, 2018 $ 381 Commodity Contracts Cost of products sold $ (1,969 ) Three months ended March 26, 2017 $ (1,969 ) (a) Includes $20.7 million of accelerated reclassifications out of AOCL, related to the January 2017 Refinancing. Credit risk-related contingent features The Company has agreements with certain counterparties that contain a provision whereby the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on the indebtedness. As of April 1, 2018 , the fair value of derivatives, which includes accrued interest but excludes any adjustment for nonperformance risk, was in a net asset position by counterparty. As of April 1, 2018 , the Company has not posted any collateral related to these agreements. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 01, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies General From time to time, the Company and its subsidiaries are parties to, or targets of, lawsuits, claims, investigations, and proceedings, which are being handled and defended in the ordinary course of business. Although the outcome of such items cannot be determined with certainty, the Company’s general counsel and management are of the opinion that the final outcome of these matters will not have a material effect on the Company’s financial condition, results of operations or cash flows. Aunt Jemima retail and foodservice frozen breakfast products recall (the "Recall") On May 5, 2017, the Company issued a voluntary recall for certain Aunt Jemima retail and foodservice frozen breakfast products due to potential bacterial contamination. The cost impact of the Recall for the fiscal year ended December 31, 2017 is a charge to gross margin of $13.0 million , of which $10.8 million is recorded as a reduction of Net Sales related to customer returns with the remaining $2.2 million relating to freight and disposal costs, charged directly to Cost of products sold. Of these costs, $6.5 million is reported in the Frozen segment, with an additional $6.5 million recorded in the Specialty segment. The Company has insurance coverage that it expects will cover a portion of the cost of the Recall. Any insurance proceeds will be recorded in the period they are received. |
Segments
Segments | 3 Months Ended |
Apr. 01, 2018 | |
Segment Reporting [Abstract] | |
Segments | Segments The Company is a leading manufacturer, marketer and distributor of high quality, branded food products in North America. The businesses is comprised of four reportable segments: Frozen, Grocery, Boulder and Specialty. The Frozen segment is comprised of the retail businesses of the Company’s frozen brands, including vegetables ( Birds Eye ), complete bagged meals ( Birds Eye Voila! and Birds Eye Signature Skillets ), full-calorie single-serve frozen dinners and entrées ( Hungry-Man ), prepared seafood ( Van de Kamp's and Mrs. Paul's ), frozen and refrigerated bagels ( Lender's ) and pizza for one ( Celeste ). The Frozen segment also includes all of the Company’s business in Canada, including those of the Garden Protein International and Boulder Brands acquisitions. The Grocery segment is comprised of the retail businesses of the Company’s grocery brands, including cake/brownie mixes and frostings ( Duncan Hines ), shelf-stable pickles ( Vlasic ), salad dressings ( Wish-Bone , Western and Bernstein’s ), table syrups ( Log Cabin and Mrs. Butterworth's ), refrigerated and shelf-stable spreads ( Smart Balance), canned meat ( Armour, Nalley and Brooks ), pie and pastry fillings ( Duncan Hines Comstock and Wilderness ) and barbecue sauces ( Open Pit ). The Boulder segment is comprised of the retail businesses of the Company’s health and wellness lifestyle brands, including gluten- free products ( Udi's and Glutino) , natural frozen meal offerings ( EVOL) , plant-based refrigerated and shelf-stable spreads ( Earth Balance ) and plant-based protein frozen products ( gardein ). The Specialty segment includes the Company’s snack products ( Tim's Cascade and Snyder of Berlin ) and all of its U.S. foodservice and private label businesses, including those of the Garden Protein International and Boulder Brands acquisitions. Segment performance is evaluated by the Company’s Chief Operating Decision Maker and is based on earnings before interest and taxes. Transfers between segments and geographic areas are recorded at cost plus markup or at market. Identifiable assets are those assets, including goodwill, which are identified with the operations in each segment or geographic region. Corporate assets consist of prepaid and deferred tax assets. Unallocated corporate expenses consist of corporate overhead such as executive management, finance and legal functions. Three months ended SEGMENT INFORMATION April 1, March 26, Net sales Frozen $ 344,871 $ 320,942 Grocery 261,007 259,350 Boulder 97,756 97,292 Specialty 75,198 88,490 Total $ 778,832 $ 766,074 Earnings before interest and taxes Frozen $ 53,711 $ 50,922 Grocery 49,748 51,807 Boulder 11,851 6,672 Specialty 8,216 8,888 Unallocated corporate expenses (7,825 ) (7,081 ) Total $ 115,701 $ 111,208 Depreciation and amortization Frozen $ 11,634 $ 10,569 Grocery 7,749 8,076 Boulder 4,352 3,761 Specialty 3,153 4,682 Total $ 26,888 $ 27,088 Capital expenditures (1) Frozen $ 24,274 $ 13,318 Grocery 9,180 7,530 Boulder 3,892 7,745 Specialty 3,439 5,472 Total $ 40,785 $ 34,065 NET SALES BY PRODUCT TYPE Net sales Frozen $ 429,739 $ 407,860 Shelf stable and meal enhancers 237,675 247,406 Desserts 77,748 77,246 Snacks 33,670 33,562 Total $ 778,832 $ 766,074 GEOGRAPHIC INFORMATION Net sales United States $ 764,193 $ 754,587 Canada 41,374 36,694 Intercompany (26,735 ) (25,207 ) Total $ 778,832 $ 766,074 (1) Includes new capital leases. SEGMENT INFORMATION April 1, December 31, Total assets Frozen $ 2,342,616 $ 2,417,543 Grocery 2,724,171 2,787,209 Boulder 999,166 1,005,209 Specialty 346,602 357,040 Corporate 10,487 11,263 Total $ 6,423,042 $ 6,578,264 GEOGRAPHIC INFORMATION Plant assets United States $ 710,255 $ 707,670 Canada 30,010 32,043 Total $ 740,265 $ 739,713 |
Provision for Income Taxes
Provision for Income Taxes | 3 Months Ended |
Apr. 01, 2018 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | Provision for Income Taxes The provision for income taxes and related effective tax rates for the three months ended April 1, 2018 and March 26, 2017 , respectively, were as follows: Three months ended Provision for income taxes April 1, March 26, Current $ 11,408 $ 2,285 Deferred 5,697 5,058 Total $ 17,105 $ 7,343 Effective tax rate 23.1 % 24.1 % Income taxes are accounted for in accordance with the authoritative guidance for accounting for income taxes under which deferred tax assets and liabilities are determined based on the difference between their financial statement basis and tax basis, using enacted tax rates in effect for the year in which the differences are expected to reverse. In the first quarter of 2017, we retrospectively adopted the guidance of ASU 2015-17, “Balance Sheet Classification of Deferred Taxes” and in connection, are presenting all deferred tax asset and liability balances as non-current on our consolidated balance sheet for the three months ended April 1, 2018 and the year ended December 31, 2017 in this filing. On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was signed into law. Among other provisions, the Act reduced the federal statutory corporate income tax rate from 35.0% to 21.0% . The Company continues to evaluate the impact of certain foreign and domestic income provisions of the Act and for the three months ended April 1, 2018 has determined those provisions will not have a material effect on its fiscal year 2018 financial statements. Once the Company finalizes its analysis of the Act it will be able to conclude on any further adjustments to be recorded in these provisional amounts. Any such adjustment is reported as a component of income taxes in the reporting period in which such adjustments are determined, which will be no later than the fourth quarter of 2018, or as a component of our 2018 annualized effective income tax rate, depending on the nature of the adjustment. Our effective income tax rate for the three months ended April 1, 2018 reflects a decrease in the federal rate to 21.0% as a result of the Act. The rate also includes a benefit of 1.9% from share based payment transactions being recorded as an item of continuing operations in accordance with ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting” effective for our 2017 fiscal year Note 18 and a charge of 1.4% related to changes in state tax law. Our effective income tax rate for the three months ended March 26, 2017 reflects the former 35.0% federal rate offset by a benefit of 12.4% from share based payment transactions and a benefit of 1.6% from the domestic production activities deduction. The Company regularly evaluates its deferred tax assets for future realization. A valuation allowance is established when the Company believes that it is more likely than not that some portion of its deferred tax assets will not be realized. Changes in valuation allowances from period to period are included in the Company's tax provision in the period of change. There was no significant movement in our valuation allowances during the three months ended April 1, 2018. The Company is a loss corporation as defined by Internal Revenue Code (“the Code”) Section 382. Section 382 places an annual limitation on our ability to use our federal net operating loss (“NOL”) carryovers and other attributes to reduce future taxable income. As of April 1, 2018, we have federal NOL carryovers of $408.3 million subject to an annual limitation of $17.1 million . As a result, $237.2 million of the carryovers exceed the estimated available Section 382 limitation. The Company has reduced its deferred tax assets for this limitation. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 3 Months Ended |
Apr. 01, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Accounting Pronouncement Adopted in 2018 In May 2014, the FASB issued ASU No. 2014-09, guidance based on the principle that revenue is recognized in an amount expected to be collected and to which the entity expects to be entitled in exchange for the transfer of goods or services. In August 2015, the FASB deferred the effective date by one year while providing the option to early adopt the standard on the original effective date. Accordingly, the Company adopted the standard in the first quarter of fiscal 2018. We analyzed the impact that the new guidance has on our policies, processes, controls, and disclosures. This assessment required, among other things, a review of the contracts we have with our customers. Substantially all of our revenue is earned pursuant to agreements under which we have one performance obligation, which is satisfied at a point-in-time. Based on our analysis, this ASU did not have a material effect on the timing or amount of revenue recognition, our results of operations, our financial position or our control environment. Our disclosures changed as appropriate to comply with the new guidance. See Note 3 for further details. In March 2017, the FASB issued ASU 2017-07, "Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost". ASU 2017-07 requires the service cost component of net periodic benefit cost be presented in the same income statement line item as other employee compensation costs arising from services rendered during the period and other components of the net periodic benefit cost be presented separately from the line item that includes the service cost and outside of any subtotal of operating income. The Company adopted this guidance during the first quarter of 2018. The amendments have been applied retrospectively for the income statement presentation requirements. Prior to adoption of the guidance, we classified all net periodic benefit costs within operating costs, specifically Cost of products sold on the consolidated statements of operations. The line item classification changes required by the new guidance did not impact the Company's pre-tax earnings or net income; however, Gross Profit and Non-operating income changed by immaterial offsetting amounts. In May 2017, the FASB issued ASU 2017-09, "Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting". ASU 2017-09 provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The amendments in the update are effective for all annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued. The Company adopted this guidance in the first quarter of fiscal 2018. This guidance did not have an impact on our consolidated financial statements upon adoption. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities". ASU 2017-12 provides guidance that amends hedge accounting. Under the new guidance, more hedging strategies will be eligible for hedge accounting and the application of hedge accounting is simplified. The new guidance amends presentation and disclosure requirements, and how effectiveness is assessed. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those years. Early adoption is permitted. The Company early adopted this guidance in the first quarter of 2018. This guidance did not have a material impact on our consolidated financial statements upon adoption. Currently all of the Company's commodity risk derivatives are not designated as hedges and thus do not qualify for hedge accounting. As new derivative contracts are executed, the Company expects a portion of these commodity risk derivatives to qualify for hedge accounting and its disclosures to be updated accordingly. In February 2018, the FASB issued ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income". The update allows for a reclassification from accumulated other comprehensive earnings for stranded tax effects resulting from the 2017 Tax Cuts and Jobs Act. The update is effective for fiscal years beginning after December 15, 2018, and interim periods within those years. Early adoption is permitted. The Company early adopted this guidance in the first quarter of 2018. As a result, in the first quarter of 2018, the Company reclassified $5.3 million out of Accumulated Other Comprehensive Loss as an increase to Retained Earnings. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases”. The FASB is amending the FASB Accounting Standards Codification ("ASC") and creating Topic 842, Leases, which will supersede Topic 840, Leases. The main difference between previous GAAP and Topic 842 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. Under the new guidance, lessees will be required to recognize the assets and liabilities arising from leases on the balance sheet. The updated guidance will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. In transition to the new guidance, entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is in the process of evaluating this guidance. In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which eliminates the requirement to determine the fair value of individual assets and liabilities of a reporting unit to measure goodwill impairment. Under the amendments in the new ASU, goodwill impairment testing will be performed by comparing the fair value of the reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The new standard is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and should be applied on a prospective basis. Early adoption is permitted for annual or interim goodwill impairment testing performed after January 1, 2017. The Company is currently evaluating the impact of adopting this guidance. |
Guarantor and Nonguarantor Stat
Guarantor and Nonguarantor Statements | 3 Months Ended |
Apr. 01, 2018 | |
Guarantor And Nonguarantor Statements [Abstract] | |
Guarantor and Nonguarantor Statements | Guarantor and Nonguarantor Statements The Senior Notes are general senior unsecured obligations of Pinnacle Foods Finance LLC, effectively subordinated in right of payment to all existing and future senior secured indebtedness of Pinnacle Foods Finance LLC and guaranteed on a full, unconditional, joint and several basis by the Company and Pinnacle Foods Finance LLC's 100% owned domestic subsidiaries that guarantee other indebtedness of the Pinnacle Foods Finance LLC. The indenture governing the Senior Notes contains customary exceptions under which a guarantee of a guarantor subsidiary will terminate, including (1) the sale, exchange or transfer (by merger or otherwise) of the capital stock or all or substantially all of the assets of such guarantor subsidiary, (2) the release or discharge of the guarantee by such guarantor subsidiary of the Fourth Amended and Restated Credit Agreement or other guarantee that resulted in the creation of the guarantee, (3) the designation of such guarantor subsidiary as an “unrestricted subsidiary” in accordance with the indentures governing the Senior Notes and (4) upon the legal defeasance or covenant defeasance or discharge of the indentures governing the Senior Notes. The following condensed consolidating financial information presents: (1) (a) Condensed consolidating balance sheets as of April 1, 2018 and December 31, 2017 . (b) The related condensed consolidating statements of operations and comprehensive earnings for the Company, Pinnacle Foods Finance LLC, all guarantor subsidiaries and the non-guarantor subsidiaries for the following: i. Three months ended April 1, 2018 ; and ii. Three months ended March 26, 2017 . (c) The related condensed consolidating statements of cash flows for the Company, Pinnacle Foods Finance LLC, all guarantor subsidiaries and the non-guarantor subsidiaries for the following: i. Three months ended ended April 1, 2018 ; and ii. Three months ended ended March 26, 2017 . (2) Elimination entries necessary to consolidate the Company, Pinnacle Foods Finance LLC with its guarantor subsidiaries and non-guarantor subsidiaries. Investments in subsidiaries are accounted for by the parent using the equity method of accounting. The guarantor subsidiaries are presented on a combined basis. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions and include a reclassification entry of net non-current deferred tax assets to non-current deferred tax liabilities. Pinnacle Foods Inc. Condensed Consolidating Balance Sheet April 1, 2018 Pinnacle Foods Inc. Pinnacle Foods Finance LLC Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations and Reclassifications Consolidated Total Current assets: Cash and cash equivalents $ — $ — $ 76,226 $ 1,458 $ — $ 77,684 Accounts receivable, net — — 289,752 11,466 — 301,218 Intercompany accounts receivable 107,602 — 1,235,500 1,442 (1,344,544 ) — Inventories, net — — 458,300 19,042 — 477,342 Other current assets — 6,970 9,855 664 — 17,489 Total current assets 107,602 6,970 2,069,633 34,072 (1,344,544 ) 873,733 Plant assets, net — — 710,255 30,010 — 740,265 Investment in subsidiaries 2,343,571 3,214,585 42,684 — (5,600,840 ) — Intercompany note receivable — 2,918,747 45,308 9,800 (2,973,855 ) — Tradenames — — 2,458,681 4,574 — 2,463,255 Other assets, net — 16,464 142,971 9,963 — 169,398 Deferred tax assets — 241,135 — 599 (241,734 ) — Goodwill — — 2,115,731 60,660 — 2,176,391 Total assets $ 2,451,173 $ 6,397,901 $ 7,585,263 $ 149,678 $ (10,160,973 ) $ 6,423,042 Current liabilities: Short-term borrowings $ — $ — $ 1,566 $ — $ — $ 1,566 Current portion of long-term obligations — 40,000 13,329 2 — 53,331 Accounts payable 4,825 — 317,015 5,828 — 327,668 Intercompany accounts payable — 1,323,136 — 21,408 (1,344,544 ) — Accrued trade marketing expense — — 37,433 3,627 — 41,060 Accrued liabilities 204 15,934 108,118 5,210 — 129,466 Dividends payable 40,884 — — — — 40,884 Total current liabilities 45,913 1,379,070 477,461 36,075 (1,344,544 ) 593,975 Long-term debt — 2,675,171 28,517 45 — 2,703,733 Intercompany note payable — — 2,908,285 65,570 (2,973,855 ) — Pension and other postretirement benefits — — 52,142 — — 52,142 Other long-term liabilities — 89 32,915 881 — 33,885 Deferred tax liabilities — — 871,358 3,317 (241,734 ) 632,941 Total liabilities 45,913 4,054,330 4,370,678 105,888 (4,560,133 ) 4,016,676 Commitments and contingencies (Note 15) Shareholders' equity: Pinnacle common stock 1,202 — — — — 1,202 Additional paid-in-capital 1,453,171 1,454,373 1,376,295 32,772 (2,863,440 ) 1,453,171 Retained earnings 1,010,472 916,673 1,869,511 12,001 (2,798,185 ) 1,010,472 Accumulated other comprehensive (loss)/gain (27,475 ) (27,475 ) (31,221 ) (2,089 ) 60,785 (27,475 ) Capital stock in treasury, at cost (32,110 ) — — — — (32,110 ) Total Pinnacle Foods Inc. and Subsidiaries stockholders' equity 2,405,260 2,343,571 3,214,585 42,684 (5,600,840 ) 2,405,260 Non-controlling interest — — — 1,106 — 1,106 Total Equity 2,405,260 2,343,571 3,214,585 43,790 (5,600,840 ) 2,406,366 Total liabilities and equity $ 2,451,173 $ 6,397,901 $ 7,585,263 $ 149,678 $ (10,160,973 ) $ 6,423,042 Pinnacle Foods Inc. Condensed Consolidating Balance Sheet December 31, 2017 Pinnacle Foods Inc. Pinnacle Foods Finance LLC Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations and Reclassifications Consolidated Total Current assets: Cash and cash equivalents $ — $ — $ 241,772 $ 8,056 $ — $ 249,828 Accounts receivable, net — — 272,401 9,221 — 281,622 Intercompany accounts receivable 102,335 — 1,001,329 — (1,103,664 ) — Inventories, net — — 469,813 19,993 — 489,806 Other current assets — 2,649 8,124 288 — 11,061 Total current assets 102,335 2,649 1,993,439 37,558 (1,103,664 ) 1,032,317 Plant assets, net — — 707,670 32,043 — 739,713 Investment in subsidiaries 2,317,445 3,180,932 43,056 — (5,541,433 ) — Intercompany note receivable — 2,907,799 45,226 9,800 (2,962,825 ) — Tradenames — — 2,458,681 4,693 — 2,463,374 Other assets, net — 8,802 145,489 10,608 — 164,899 Deferred tax assets — 233,391 — — (233,391 ) — Goodwill — — 2,115,731 62,230 — 2,177,961 Total assets $ 2,419,780 $ 6,333,573 $ 7,509,292 $ 156,932 $ (9,841,313 ) $ 6,578,264 Current liabilities: Short-term borrowings $ — $ — $ 2,739 $ — $ — $ 2,739 Current portion of long-term obligations — 22,620 11,311 3 — 33,934 Accounts payable — — 315,142 7,920 — 323,062 Intercompany accounts payable — 1,078,535 — 25,129 (1,103,664 ) — Accrued trade marketing expense — — 36,484 2,491 — 38,975 Accrued liabilities 178 19,913 95,010 7,030 — 122,131 Dividends payable 40,470 — — — — 40,470 Total current liabilities 40,648 1,121,068 460,686 42,573 (1,103,664 ) 561,311 Long-term debt — 2,894,962 30,594 38 — 2,925,594 Intercompany note payable — — 2,896,811 66,014 (2,962,825 ) — Pension and other postretirement benefits — — 53,251 — — 53,251 Other long-term liabilities — 98 32,971 968 — 34,037 Deferred tax liabilities — — 854,047 3,177 (233,391 ) 623,833 Total liabilities 40,648 4,016,128 4,328,360 112,770 (4,299,880 ) 4,198,026 Commitments and contingencies (Note 15) Shareholders' equity: Pinnacle common stock 1,200 — — — — 1,200 Additional paid-in-capital 1,453,054 1,454,253 1,376,175 32,771 (2,863,199 ) 1,453,054 Retained earnings 987,238 893,441 1,834,555 10,756 (2,738,752 ) 987,238 Accumulated other comprehensive loss (30,250 ) (30,249 ) (29,798 ) (471 ) 60,518 (30,250 ) Capital stock in treasury, at cost (32,110 ) — — — — (32,110 ) Total Pinnacle Foods Inc. and Subs stockholders equity 2,379,132 2,317,445 3,180,932 43,056 (5,541,433 ) 2,379,132 Non-controlling interest — — — 1,106 — 1,106 Total Equity 2,379,132 2,317,445 3,180,932 44,162 (5,541,433 ) 2,380,238 Total liabilities and shareholders' equity $ 2,419,780 $ 6,333,573 $ 7,509,292 $ 156,932 $ (9,841,313 ) $ 6,578,264 Pinnacle Foods Inc. Condensed Consolidating Statement of Operations and Comprehensive Earnings For the three months ended April 1, 2018 Pinnacle Foods Inc. Pinnacle Foods Finance LLC Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total Net sales $ — $ — $ 764,192 $ 41,374 $ (26,734 ) $ 778,832 Cost of products sold — — 562,753 36,265 (26,616 ) 572,402 Gross profit — — 201,439 5,109 (118 ) 206,430 Marketing and selling expenses — — 48,567 660 — 49,227 Administrative expenses — — 33,039 1,635 — 34,674 Research and development expenses — — 4,581 183 — 4,764 Intercompany royalties — — (167 ) 167 — — Intercompany management fees — — — 118 (118 ) — Intercompany technical service fees — — — — — — Other (income) expense, net — 525 2,156 184 — 2,865 Equity in (earnings) loss of investees (56,914 ) (73,967 ) (1,483 ) — 132,364 — (56,914 ) (73,442 ) 86,693 2,947 132,246 91,530 Operating income 56,914 73,442 114,746 2,162 (132,364 ) 114,900 Non-operating income — — 801 — — 801 Earnings before interest and taxes 56,914 73,442 115,547 2,162 (132,364 ) 115,701 Intercompany interest (income) expense — (18,752 ) 18,533 219 — — Interest expense — 41,135 742 17 — 41,894 Interest income — — 200 12 — 212 Earnings before income taxes 56,914 51,059 96,472 1,938 (132,364 ) 74,019 (Benefit) provision for income taxes — (5,855 ) 22,505 455 — 17,105 Net earnings 56,914 56,914 73,967 1,483 (132,364 ) 56,914 Less: Net loss attributable to non-controlling interest — — — — — — Net earnings attributable to Pinnacle Foods, Inc. and Subsidiaries common stockholders $ 56,914 $ 56,914 $ 73,967 $ 1,483 $ (132,364 ) $ 56,914 Total comprehensive earnings 65,018 65,018 72,543 (136 ) (137,425 ) 65,018 Less: Comprehensive loss attributable to non-controlling interest — — — — — — Comprehensive earnings attributable to Pinnacle Foods, Inc. and Subsidiaries $ 65,018 $ 65,018 $ 72,543 $ (136 ) $ (137,425 ) $ 65,018 Pinnacle Foods Inc. Condensed Consolidating Statement of Operations and Comprehensive Earnings For the three months ended March 26, 2017 Pinnacle Foods Inc. Pinnacle Foods Finance LLC Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total Net sales $ — $ — $ 754,587 $ 36,694 $ (25,207 ) $ 766,074 Cost of products sold — 546,212 33,856 (24,567 ) 555,501 Gross profit — — 208,375 2,838 (640 ) 210,573 Marketing and selling expenses — — 54,703 891 — 55,594 Administrative expenses — — 34,385 1,626 — 36,011 Research and development expenses — — 3,837 184 — 4,021 Intercompany royalties — — (188 ) 188 — Intercompany management fees 391 (391 ) — Intercompany technical service fees — — — 249 (249 ) — Other expense, net (233 ) 4,020 443 — 4,230 Equity in (earnings) loss of investees (22,926 ) (58,177 ) 1,352 — 79,751 — (22,926 ) (58,410 ) 98,109 3,972 79,111 99,856 Operating income 22,926 58,410 110,266 (1,134 ) (79,751 ) 110,717 Non-operating income — — 491 — — 491 Earnings before interest and taxes 22,926 58,410 110,757 (1,134 ) (79,751 ) 111,208 Intercompany interest (income) expense — (22,305 ) 22,087 218 — — Interest expense — 80,170 551 10 — 80,731 Interest income — — 10 5 — 15 Earnings before income taxes 22,926 545 88,129 (1,357 ) (79,751 ) 30,492 (Benefit) provision for income taxes — (22,381 ) 29,952 (228 ) — 7,343 Net earnings 22,926 22,926 58,177 (1,129 ) (79,751 ) 23,149 Less: Net (loss) earnings attributable to non-controlling interest — — — 223 — 223 Net earnings (loss) attributable to Pinnacle Foods, Inc. and Subsidiaries common stockholders $ 22,926 $ 22,926 $ 58,177 $ (1,352 ) $ (79,751 ) $ 22,926 Total comprehensive earnings (loss) 38,033 38,033 59,681 246 (97,737 ) 38,256 Less: Comprehensive (loss) attributable to non-controlling interest — — — 223 — 223 Comprehensive earnings (loss) attributable to Pinnacle Foods, Inc. and Subsidiaries $ 38,033 $ 38,033 $ 59,681 $ 23 $ (97,737 ) $ 38,033 Pinnacle Foods Inc. Condensed Consolidating Statement of Cash Flows For the three months ended April 1, 2018 Pinnacle Foods Inc. Pinnacle Foods Finance LLC Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations and Reclassifications Consolidated Total Cash flows from operating activities Net cash (used in) provided by operating activities $ — $ (4,890 ) $ 124,927 $ 1,541 $ — $ 121,578 Cash flows from investing activities Intercompany accounts receivable/payable — 218,077 8,451 — (226,528 ) — Investment in Subsidiary 37,932 38,890 — — (76,822 ) — Capital expenditures — — (35,800 ) (76 ) — (35,876 ) Other investing — — — 608 — 608 Net cash provided by (used in) investing activities 37,932 256,967 (27,349 ) 532 (303,350 ) (35,268 ) Cash flows from financing activities Net proceeds from issuance of common stock 762 — — — — 762 Taxes paid related to net share settlement of equity awards (99 ) — — — — (99 ) Dividends paid (38,595 ) — — — — (38,595 ) Proceeds from bank term loans — 2,039,380 — — — 2,039,380 Repayments of long-term obligations — (2,249,380 ) (979 ) — — (2,250,359 ) Repayments of short-term borrowing — — (1,173 ) — — (1,173 ) Intercompany accounts receivable/payable — — (218,077 ) (8,451 ) 226,528 — Return of capital — (37,932 ) (38,890 ) — 76,822 — Repayment of capital lease obligations — — (4,005 ) (31 ) — (4,036 ) Debt acquisition costs — (4,145 ) — — — (4,145 ) Net cash (used in) provided by financing activities (37,932 ) (252,077 ) (263,124 ) (8,482 ) 303,350 (258,265 ) Effect of exchange rate changes on cash (189 ) (189 ) Net change in cash and cash equivalents — — (165,546 ) (6,598 ) — (172,144 ) Cash and cash equivalents - beginning of period — — 241,772 8,056 — 249,828 Cash and cash equivalents - end of period $ — $ — $ 76,226 $ 1,458 $ — $ 77,684 Pinnacle Foods Inc. Condensed Consolidating Statement of Cash Flows For the three months ended March 26, 2017 Pinnacle Foods Inc. Pinnacle Foods Finance LLC Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations and Reclassifications Consolidated Total Cash flows from operating activities Net cash provided by (used in) operating activities $ (16,463 ) $ 76,870 $ 2,586 $ — $ 62,993 Cash flows from investing activities Intercompany accounts receivable/payable — 235,763 7,580 — (243,343 ) — Investment in subsidiaries 28,011 24,271 — — (52,282 ) — Capital expenditures — — (28,744 ) (499 ) — (29,243 ) Sale of plant assets — — — 679 — 679 Net cash (used in) provided by investing activities 28,011 260,034 (21,164 ) 180 (295,625 ) (28,564 ) Cash flows from financing activities Net proceeds from the issuance of common stock 5,894 — — — — 5,894 Taxes paid related to net share settlement of equity awards (303 ) — — — — (303 ) Dividends paid (33,602 ) — — — — (33,602 ) Proceeds from bank term loan — 2,262,000 — — — 2,262,000 Repayments of long-term obligations — (2,464,750 ) (950 ) — — (2,465,700 ) Proceeds from short-term borrowing — — 1,634 — — 1,634 Repayments of short-term borrowing — — (1,068 ) — — (1,068 ) Intercompany accounts receivable/payable — — (235,763 ) (7,580 ) 243,343 — Return of capital — (28,011 ) (24,271 ) — 52,282 — Repayment of capital lease obligations — — (2,206 ) (18 ) — (2,224 ) Debt acquisition costs — (12,810 ) — — — (12,810 ) Net cash (used in) provided by financing activities (28,011 ) (243,571 ) (262,624 ) (7,598 ) 295,625 (246,179 ) Effect of exchange rate changes on cash — — — 128 — 128 Net change in cash and cash equivalents — — (206,918 ) (4,704 ) — (211,622 ) Cash and cash equivalents - beginning of period — — 341,238 11,838 — 353,076 Cash and cash equivalents - end of period $ — $ — $ 134,320 $ 7,134 $ — $ 141,454 |
Recently Issued Accounting Pr28
Recently Issued Accounting Pronouncements (Policies) | 3 Months Ended |
Apr. 01, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting primarily of normal recurring adjustments) necessary for a fair statement of the Company’s financial position as of April 1, 2018 , the results of operations for the three months ended April 1, 2018 and March 26, 2017 , and the cash flows for the three months ended April 1, 2018 and March 26, 2017 . The results of operations are not necessarily indicative of the results to be expected for the full fiscal year. The accompanying unaudited consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto for the fiscal year ended December 31, 2017 . |
Fair Value of Financial Instruments | The Company manages economic risks, including interest rate, liquidity and credit risk, primarily by managing the amount, sources and duration of its debt funding and the use of derivative financial instruments. The primary risks managed by using derivative instruments are interest rate risk, foreign currency exchange risk and commodity price risk. The valuations of these instruments are determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate, commodity, and foreign exchange forward curves. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash payments (or receipts) and the discounted expected variable cash receipts (or payments). The variable cash receipts (or payments) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. To comply with the provisions of the authoritative guidance for fair value disclosure, the Company incorporates credit valuation adjustments to appropriately reflect both its own non-performance risk and the respective counterparty’s non-performance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of non-performance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees. Other than the Tradename discussed below, the Company had no fair value measurements based upon significant unobservable inputs (Level 3) as of April 1, 2018 or December 31, 2017 . In addition to the instruments named above, the Company also makes fair value measurements in connection with any goodwill and tradename impairment testing. These measurements fall into Level 3 of the fair value hierarchy. |
Recently Issued Accounting Pronouncements | Accounting Pronouncement Adopted in 2018 In May 2014, the FASB issued ASU No. 2014-09, guidance based on the principle that revenue is recognized in an amount expected to be collected and to which the entity expects to be entitled in exchange for the transfer of goods or services. In August 2015, the FASB deferred the effective date by one year while providing the option to early adopt the standard on the original effective date. Accordingly, the Company adopted the standard in the first quarter of fiscal 2018. We analyzed the impact that the new guidance has on our policies, processes, controls, and disclosures. This assessment required, among other things, a review of the contracts we have with our customers. Substantially all of our revenue is earned pursuant to agreements under which we have one performance obligation, which is satisfied at a point-in-time. Based on our analysis, this ASU did not have a material effect on the timing or amount of revenue recognition, our results of operations, our financial position or our control environment. Our disclosures changed as appropriate to comply with the new guidance. See Note 3 for further details. In March 2017, the FASB issued ASU 2017-07, "Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost". ASU 2017-07 requires the service cost component of net periodic benefit cost be presented in the same income statement line item as other employee compensation costs arising from services rendered during the period and other components of the net periodic benefit cost be presented separately from the line item that includes the service cost and outside of any subtotal of operating income. The Company adopted this guidance during the first quarter of 2018. The amendments have been applied retrospectively for the income statement presentation requirements. Prior to adoption of the guidance, we classified all net periodic benefit costs within operating costs, specifically Cost of products sold on the consolidated statements of operations. The line item classification changes required by the new guidance did not impact the Company's pre-tax earnings or net income; however, Gross Profit and Non-operating income changed by immaterial offsetting amounts. In May 2017, the FASB issued ASU 2017-09, "Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting". ASU 2017-09 provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The amendments in the update are effective for all annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued. The Company adopted this guidance in the first quarter of fiscal 2018. This guidance did not have an impact on our consolidated financial statements upon adoption. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities". ASU 2017-12 provides guidance that amends hedge accounting. Under the new guidance, more hedging strategies will be eligible for hedge accounting and the application of hedge accounting is simplified. The new guidance amends presentation and disclosure requirements, and how effectiveness is assessed. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those years. Early adoption is permitted. The Company early adopted this guidance in the first quarter of 2018. This guidance did not have a material impact on our consolidated financial statements upon adoption. Currently all of the Company's commodity risk derivatives are not designated as hedges and thus do not qualify for hedge accounting. As new derivative contracts are executed, the Company expects a portion of these commodity risk derivatives to qualify for hedge accounting and its disclosures to be updated accordingly. In February 2018, the FASB issued ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income". The update allows for a reclassification from accumulated other comprehensive earnings for stranded tax effects resulting from the 2017 Tax Cuts and Jobs Act. The update is effective for fiscal years beginning after December 15, 2018, and interim periods within those years. Early adoption is permitted. The Company early adopted this guidance in the first quarter of 2018. As a result, in the first quarter of 2018, the Company reclassified $5.3 million out of Accumulated Other Comprehensive Loss as an increase to Retained Earnings. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases”. The FASB is amending the FASB Accounting Standards Codification ("ASC") and creating Topic 842, Leases, which will supersede Topic 840, Leases. The main difference between previous GAAP and Topic 842 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. Under the new guidance, lessees will be required to recognize the assets and liabilities arising from leases on the balance sheet. The updated guidance will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. In transition to the new guidance, entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is in the process of evaluating this guidance. In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which eliminates the requirement to determine the fair value of individual assets and liabilities of a reporting unit to measure goodwill impairment. Under the amendments in the new ASU, goodwill impairment testing will be performed by comparing the fair value of the reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The new standard is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and should be applied on a prospective basis. Early adoption is permitted for annual or interim goodwill impairment testing performed after January 1, 2017. The Company is currently evaluating the impact of adopting this guidance. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Business Combinations [Abstract] | |
Schedule of Assets Acquired and Liabilities Assumed | The following table summarizes the allocation of the total cost of the acquisition to the assets acquired: Assets acquired Land $ 700 Buildings 22,043 Plant assets 4,091 Goodwill 10,653 Total cost of acquisition $ 37,487 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Subject to Recurring Fair Value | The Company’s financial assets and liabilities subject to recurring fair value measurements and the required disclosures are as follows: April 1, 2018 Fair Value Measurements Using Fair Value Hierarchy December 31, 2017 Fair Value Measurements Using Fair Value Hierarchy Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Interest rate derivatives $ 20,965 $ — $ 20,965 $ — $ 8,194 $ — $ 8,194 $ — Foreign currency derivatives 15 — 15 — — — — — Commodity derivatives 1,849 — 1,849 — 2,615 — 2,615 — Total assets at fair value $ 22,829 $ — $ 22,829 $ — $ 10,809 $ — $ 10,809 $ — Liabilities Interest rate derivatives $ — $ — $ — $ — $ — $ — $ — $ — Foreign currency derivatives 1 — 1 — 750 — 750 — Commodity derivatives 178 — 178 — 336 — 336 — Total liabilities at fair value $ 179 $ — $ 179 $ — $ 1,086 $ — $ 1,086 $ — |
Other Expense, net (Tables)
Other Expense, net (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Expense (Income), net | Other Expense (Income), net Three months ended April 1, March 26, Other expense, net consists of: Amortization of intangibles/other assets $ 2,328 $ 4,542 Foreign exchange losses/(gains) 525 (233 ) Royalty income and other 12 (79 ) Total other expense, net $ 2,865 $ 4,230 |
Equity-Based Compensation Exp32
Equity-Based Compensation Expense and Earnings Per Share (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Employee Service Share-based Compensation | The following table summarizes equity-based compensation expense which was allocated as follows: Three months ended April 1, 2018 March 26, 2017 Cost of products sold $ 606 $ 515 Marketing and selling expenses 509 1,167 Administrative expenses 2,987 2,307 Research and development expenses 177 120 Pre-tax equity-based compensation expense 4,279 4,109 Income tax benefit (851 ) (1,561 ) Net equity-based compensation expense $ 3,428 $ 2,548 |
Schedule of Weighted Average Number of Shares | Basic earnings per common share is computed by dividing net earnings or loss for common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share are calculated by dividing net earnings by weighted-average common shares outstanding during the period plus dilutive potential common shares, which are determined as follows: Three months ended April 1, 2018 March 26, 2017 Weighted-average common shares 118,496,215 117,623,753 Effect of dilutive securities: 1,316,517 1,707,795 Dilutive potential common shares 119,812,732 119,331,548 |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Equity [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Income (Loss) | The components of Accumulated other comprehensive loss consist of the following: Currency translation adjustments Gains (Losses) on cash flow hedges Change in pensions Total Balance, December 31, 2017 $ 2,095 $ 6,571 $ (38,916 ) $ (30,250 ) Other comprehensive (loss)/income before reclassification (2,178 ) 10,141 — 7,963 Amounts reclassified from accumulated other comprehensive loss — (54 ) 195 141 Net current period other comprehensive (loss)/income (2,178 ) 10,087 195 8,104 Adoption of ASU 2018-02 — 1,088 (6,417 ) (5,329 ) Balance, April 1, 2018 $ (83 ) $ 17,746 $ (45,138 ) $ (27,475 ) Currency translation adjustments Gains (Losses) on cash flow hedges Change in pensions Total Balance, December 25, 2016 $ (3,989 ) $ (8,234 ) $ (39,346 ) $ (51,569 ) Other comprehensive loss before reclassification 1,113 303 — 1,416 Amounts reclassified from accumulated other comprehensive loss — 13,524 167 13,691 Net current period other comprehensive (loss)/income 1,113 13,827 167 15,107 Balance, March 26, 2017 $ (2,876 ) $ 5,593 $ (39,179 ) $ (36,462 ) |
Summary of Reclassification out of Accumulated Other Comprehensive Income (Loss) | The following table presents amounts reclassified out of Accumulated Other Comprehensive Loss ("AOCL") and into Net earnings for the three months ended April 1, 2018 and March 26, 2017 , respectively. Amounts Reclassified from AOCL Three months ended Details about Accumulated Other Comprehensive Loss Components April 1, 2018 March 26, 2017 Reclassified from AOCL to: Gains and (losses) on financial instrument contracts Interest rate contracts $ 145 $ (21,774 ) Interest expense Foreign exchange contracts (74 ) (101 ) Cost of products sold Total pre-tax 71 (21,875 ) Tax (expense) benefit (17 ) 8,351 Provision for income taxes Net of tax 54 (13,524 ) Pension actuarial assumption adjustments Amortization of actuarial loss (259 ) (269 ) (a) Cost of products sold Tax benefit 64 102 Provision for income taxes Net of tax (195 ) (167 ) Net reclassifications into net earnings $ (141 ) $ (13,691 ) (a) This is included in the computation of net periodic pension cost (see Note 13 for additional details). |
Balance Sheet Information (Tabl
Balance Sheet Information (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable are as follows: April 1, December 31, 2017 Customers $ 300,735 $ 280,086 Allowances for cash discounts, bad debts and returns (10,359 ) (10,036 ) Subtotal 290,376 270,050 Other receivables 10,842 11,572 Total $ 301,218 $ 281,622 |
Schedule of Inventories | Inventories are as follows: April 1, December 31, Raw materials $ 86,078 $ 78,567 Work in progress (1) 47,878 65,800 Finished product 343,386 345,439 Total $ 477,342 $ 489,806 (1) Work in progress is primarily agricultural inventory. |
Schedule of Plant Assets | Plant assets are as follows: April 1, 2018 December 31, 2017 Land $ 15,648 $ 15,648 Buildings 327,384 327,501 Machinery and equipment 879,320 898,728 Projects in progress 63,038 64,038 Subtotal 1,285,390 1,305,915 Accumulated depreciation (545,125 ) (566,202 ) Total $ 740,265 $ 739,713 |
Schedule of Accrued Liabilities | Accrued liabilities are as follows: April 1, December 31, Employee compensation and benefits $ 43,105 $ 39,699 Interest payable 16,317 19,254 Consumer coupons 3,924 2,400 Accrued restructuring charges (Note 11) 370 1,414 Accrued financial instrument contracts (Note 14) 90 988 Accrued broker commissions 6,958 6,994 Accrued income taxes 36,266 26,805 Other 22,436 24,577 Total $ 129,466 $ 122,131 |
Schedule of Other Long-Term Liabilities | Other long-term liabilities are as follows: April 1, December 31, Employee compensation and benefits $ 14,354 $ 14,197 Long-term rent liability and deferred rent allowances 5,915 6,217 Liability for uncertain tax positions 11,003 11,140 Accrued financial instrument contracts (Note 14) 89 98 Other 2,524 2,385 Total $ 33,885 $ 34,037 |
Goodwill, Tradenames and Othe35
Goodwill, Tradenames and Other Assets (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill by segment | Goodwill by segment is as follows: Frozen Grocery Boulder Specialty Total Balance, December 31, 2017 $ 764,824 $ 860,972 $ 364,883 $ 187,282 $ 2,177,961 Foreign currency adjustment (1,570 ) — — (1,570 ) Balance, April 1, 2018 $ 763,254 $ 860,972 $ 364,883 $ 187,282 $ 2,176,391 |
Schedule of Tradenames by segment | Tradenames by segment are as follows: Frozen Grocery Boulder Specialty Total Balance, December 31, 2017 $ 738,344 $ 1,253,622 $ 442,808 $ 28,600 $ 2,463,374 Foreign currency adjustment (119 ) — — — (119 ) Balance, April 1, 2018 $ 738,225 $ 1,253,622 $ 442,808 $ 28,600 $ 2,463,255 |
Schedule of Other Assets | April 1, 2018 Weighted Avg Life Gross Carrying Amount Accumulated Amortization Net Amortizable intangibles Recipes 10 $ 51,498 $ (46,636 ) $ 4,862 Customer relationships - Distributors 34 176,372 (61,455 ) 114,917 Customer relationships - Food Service 10 11,400 (4,374 ) 7,026 Total amortizable intangibles $ 239,270 $ (112,465 ) $ 126,805 Financial instruments (see Note 14) 15,859 — 15,859 Other (1) 31,786 (5,052 ) 26,734 Total other assets, net $ 169,398 Amortizable intangibles by segment Frozen $ 38,630 Grocery 46,199 Boulder 32,416 Specialty 9,560 $ 126,805 December 31, 2017 Weighted Avg Life Gross Carrying Amount Accumulated Amortization Net Amortizable intangibles Recipes 10 $ 51,514 $ (46,458 ) $ 5,056 Customer relationships - Distributors 34 176,376 (59,681 ) 116,695 Customer relationships - Food Service 10 11,400 (4,004 ) 7,396 Customer relationships - Private Label 7 1,290 (1,290 ) — Total amortizable intangibles $ 240,580 $ (111,433 ) $ 129,147 Financial instruments (see Note 14) 8,160 — 8,160 Other (1) 32,607 (5,015 ) 27,592 Total other assets, net $ 164,899 Amortizable intangibles by segment Frozen $ 39,229 Grocery 46,888 Boulder 33,057 Specialty 9,973 $ 129,147 (1) As of April 1, 2018 and December 31, 2017 , Other primarily consists of cost basis investments in companies in the natural and organic food and beverage industries acquired through the Boulder Brands acquisition as well as security deposits, supplemental savings plan investments and debt acquisition costs associated with the Company's revolving credit facility. |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges Accrued | The following table summarizes charges accrued as of April 1, 2018 related to the Exit. These amounts are recorded in our Consolidated Balance Sheet in Accrued Liabilities. Balance Balance Description December 31, 2017 Expense Payments April 1, 2018 Accrued restructuring charges $ 1,126 $ — $ (756 ) $ 370 |
Debt and Interest Expense (Tabl
Debt and Interest Expense (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term and Short-term Debt Instruments | April 1, December 31, Short-term borrowings - Notes payable $ 1,566 $ 2,739 Total short-term borrowings $ 1,566 $ 2,739 Long-term debt - Tranche A Term Loans due 2023 $ 790,000 $ — - New Tranche B Term Loans due 2024 1,239,380 — - Tranche B Term Loans due 2024 — 2,239,380 - 4.875% Senior Notes due 2021 350,000 350,000 - 5.875% Senior Notes due 2024 350,000 350,000 - 3.0% Note payable to Gilster Mary Lee Corporation — 982 - Unamortized discount on long term debt and deferred financing costs (14,209 ) (21,846 ) - Capital lease obligations 41,893 41,012 2,757,064 2,959,528 Less: current portion of long-term obligations 53,331 33,934 Total long-term debt $ 2,703,733 $ 2,925,594 |
Schedule of Interest Expense | Interest expense Three months ended April 1, March 26, Interest expense $ 30,255 $ 28,883 Amortization of debt acquisition costs 871 1,580 Non-cash recognition of deferred costs related to refinancing 10,913 28,494 Settlement of hedges related to refinancing — 20,722 Interest rate swap (gains)/losses (145 ) 1,052 Total interest expense $ 41,894 $ 80,731 |
Schedule of Early Redemption Prices of Long-term Debt Instruments | Pinnacle Foods Finance LLC may redeem the 4.875% Senior Notes at the redemption prices listed below, if redeemed during the twelve-month period beginning on May 1st of each of the years indicated below: Year Percentage 2018 101.219% 2019 and thereafter 100.000% Pinnacle Foods Finance LLC may redeem the 5.875% Senior Notes at the redemption prices listed below, if redeemed during the twelve-month period beginning on January 15th of each of the years indicated below: Year Percentage 2019 104.406% 2020 102.938% 2021 101.469% 2022 and thereafter 100.000% |
Schedule of Deferred Financing Cost Activity | The following summarizes debt acquisition cost activity during the three months ended April 1, 2018 : Gross Carrying Amount Accumulated Amortization Net Balance, December 31, 2017 $ 29,689 $ (7,843 ) $ 21,846 Additions 4,145 — 4,145 Amortization — (869 ) (869 ) Recognition of deferred costs resulting from the 2018 Refinancing (12,936 ) 2,023 (10,913 ) Balance, April 1, 2018 $ 20,898 $ (6,689 ) $ 14,209 |
Schedule of the Estimated Fair Value of the Company's Long-term Debt, including the Current Portion | The estimated fair value of the Company’s long-term debt, including the current portion, as of April 1, 2018 , is as follows: April 1, 2018 Issue Face Value Fair Value Tranche A Term Loans 790,000 790,000 New Tranche B Term Loans 1,239,380 1,245,577 4.875% Senior Notes 350,000 350,875 5.875% Senior Notes 350,000 360,938 $ 2,729,380 $ 2,747,390 The estimated fair value of the Company’s long-term debt, including the current portion, as of December 31, 2017 , is as follows: December 31, 2017 Issue Face Value Fair Value Tranche B Term Loans $ 2,239,380 $ 2,259,534 3.0% Note payable to Gilster Mary Lee Corporation 982 982 4.875% Senior Notes 350,000 353,938 5.875% Senior Notes 350,000 370,125 $ 2,940,362 $ 2,984,579 |
Pension and Retirement Plans (T
Pension and Retirement Plans (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Retirement Benefits, Description [Abstract] | |
Schedule of Net Periodic (Benefit) Cost | The following represents the components of net periodic (benefit): Three months ended Pension Benefits April 1, March 26, Interest cost 1,871 1,993 Expected return on assets (2,930 ) (2,753 ) Amortization of actuarial loss 259 269 Net periodic (benefit) $ (801 ) $ (491 ) |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Swaps | As of April 1, 2018 , the Company had the following interest rate swaps that were designated as cash flow hedges of interest rate risk: Product Number of Instruments Current Notional Amount Trade Dates Maturity Dates Interest Rate Swaps 14 $ 1,499,000 Feb 2017 - Jan 2018 Jan 2019 - Feb 2023 |
Schedule of Foreign Currency Exchange Contracts | As of April 1, 2018 , the Company had the following foreign currency exchange contracts (in aggregate) that were designated as cash flow hedges of foreign exchange risk: Product Number of Instruments Notional Purchased in Aggregate in USD Trade Date Maturity Dates CAD $ Contracts 9 $21,018 Jul 2017 May 2018 - Dec 2018 |
Schedule of Derivative Instruments Not Designated in Qualifying Hedging Relationships | As of April 1, 2018 , the Company had the following derivative instruments that were not designated in qualifying hedging relationships: Commodity Contracts Number of Instruments Notional Purchased in Aggregate in USD Trade Dates Maturity Dates Commodity Contracts 46 $7,383 Feb 2017 - Feb 2018 Apr 2018 - Dec 2019 |
Schedule of the Fair Value of Derivatives, Financial Instruments as their Consolidated Balance Sheet Classification | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification in the Consolidated Balance Sheets as of April 1, 2018 and December 31, 2017 . Tabular Disclosure of Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest Rate Contracts Other current assets $ 5,106 Accrued liabilities $ — Other assets, net 15,859 Other long-term liabilities — Foreign Exchange Contracts Other current assets 15 Accrued liabilities 1 Other assets, net — Other long-term liabilities — Total derivatives designated as hedging instruments $ 20,980 $ 1 Derivatives not designated as hedging instruments Commodity Contracts Other current assets $ 1,849 Accrued liabilities $ 89 Other assets, net — Other long-term liabilities 89 Total derivatives not designated as hedging instruments $ 1,849 $ 178 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest Rate Contracts Other current assets $ 34 Accrued liabilities $ — Other assets, net 8,160 Other long-term liabilities — Foreign Exchange Contracts Other current assets — Accrued liabilities 750 Total derivatives designated as hedging instruments $ 8,194 $ 750 Derivatives not designated as hedging instruments Commodity Contracts Other current assets $ 2,615 Accrued liabilities $ 238 Other assets, net — Other long-term liabilities 98 Total derivatives not designated as hedging instruments $ 2,615 $ 336 |
Schedule of Derivative Assets | The Company has elected not to offset the fair values of derivative assets and liabilities executed with the same counterparty that are generally subject to enforceable netting agreements. However, if the Company were to offset and record the asset and liability balances of derivatives on a net basis, the amounts presented in the Consolidated Balance Sheets as of April 1, 2018 and December 31, 2017 would be adjusted as detailed in the following table: April 1, 2018 December 31, 2017 Derivative Instrument Gross Amounts Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Subject to Netting Agreements Net Amount Gross Amounts Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Subject to Netting Agreements Net Amount Total asset derivatives $ 22,829 (179 ) $ 22,650 $ 10,809 (1,086 ) $ 9,723 Total liability derivatives $ 179 (179 ) $ — $ 1,086 (1,086 ) $ — |
Schedule of Derivative Liabilities | The Company has elected not to offset the fair values of derivative assets and liabilities executed with the same counterparty that are generally subject to enforceable netting agreements. However, if the Company were to offset and record the asset and liability balances of derivatives on a net basis, the amounts presented in the Consolidated Balance Sheets as of April 1, 2018 and December 31, 2017 would be adjusted as detailed in the following table: April 1, 2018 December 31, 2017 Derivative Instrument Gross Amounts Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Subject to Netting Agreements Net Amount Gross Amounts Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Subject to Netting Agreements Net Amount Total asset derivatives $ 22,829 (179 ) $ 22,650 $ 10,809 (1,086 ) $ 9,723 Total liability derivatives $ 179 (179 ) $ — $ 1,086 (1,086 ) $ — |
Schedule of Derivative Financial Instruments on the Consolidated Statements of Operations and Accumulated Other Comprehensive (Loss) Earnings | The table below presents the effect of the Company’s derivative financial instruments in the Consolidated Statements of Operations and AOCL for the three months ended April 1, 2018 and March 26, 2017 . Tabular Disclosure of the Effect of Derivative Instruments Gain/(Loss) Derivatives in Cash Flow Hedging Relationships Recognized in AOCL on Derivative Portion Reclassified from AOCL into Earnings Consolidated Statements of Operations Hedged Items impact Income/(Expense) related to Hedged Items Interest Rate Contracts $ 12,916 Interest expense $ 145 Interest expense $ (11,598 ) Foreign Exchange Contracts 689 Cost of products sold (74 ) Cost of products sold (6,997 ) Three months ended April 1, 2018 $ 13,605 $ 71 Interest Rate Contracts $ 239 Interest expense $ (21,774 ) (a) Interest expense $ (10,852 ) Foreign Exchange Contracts 256 Cost of products sold (101 ) Cost of products sold (6,718 ) Three months ended March 26, 2017 $ 495 $ (21,875 ) Derivatives Not Designated as Hedging Instruments Recognized in Earnings in: Recognized in Earnings Commodity Contracts Cost of products sold $ 381 Three months ended April 1, 2018 $ 381 Commodity Contracts Cost of products sold $ (1,969 ) Three months ended March 26, 2017 $ (1,969 ) (a) Includes $20.7 million of accelerated reclassifications out of AOCL, related to the January 2017 Refinancing. |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment | Three months ended SEGMENT INFORMATION April 1, March 26, Net sales Frozen $ 344,871 $ 320,942 Grocery 261,007 259,350 Boulder 97,756 97,292 Specialty 75,198 88,490 Total $ 778,832 $ 766,074 Earnings before interest and taxes Frozen $ 53,711 $ 50,922 Grocery 49,748 51,807 Boulder 11,851 6,672 Specialty 8,216 8,888 Unallocated corporate expenses (7,825 ) (7,081 ) Total $ 115,701 $ 111,208 Depreciation and amortization Frozen $ 11,634 $ 10,569 Grocery 7,749 8,076 Boulder 4,352 3,761 Specialty 3,153 4,682 Total $ 26,888 $ 27,088 Capital expenditures (1) Frozen $ 24,274 $ 13,318 Grocery 9,180 7,530 Boulder 3,892 7,745 Specialty 3,439 5,472 Total $ 40,785 $ 34,065 NET SALES BY PRODUCT TYPE Net sales Frozen $ 429,739 $ 407,860 Shelf stable and meal enhancers 237,675 247,406 Desserts 77,748 77,246 Snacks 33,670 33,562 Total $ 778,832 $ 766,074 GEOGRAPHIC INFORMATION Net sales United States $ 764,193 $ 754,587 Canada 41,374 36,694 Intercompany (26,735 ) (25,207 ) Total $ 778,832 $ 766,074 (1) Includes new capital leases. |
Reconciliation of Assets from Segment to Consolidated | SEGMENT INFORMATION April 1, December 31, Total assets Frozen $ 2,342,616 $ 2,417,543 Grocery 2,724,171 2,787,209 Boulder 999,166 1,005,209 Specialty 346,602 357,040 Corporate 10,487 11,263 Total $ 6,423,042 $ 6,578,264 GEOGRAPHIC INFORMATION Plant assets United States $ 710,255 $ 707,670 Canada 30,010 32,043 Total $ 740,265 $ 739,713 |
Schedule of Long-lived Assets by Geographic Areas | SEGMENT INFORMATION April 1, December 31, Total assets Frozen $ 2,342,616 $ 2,417,543 Grocery 2,724,171 2,787,209 Boulder 999,166 1,005,209 Specialty 346,602 357,040 Corporate 10,487 11,263 Total $ 6,423,042 $ 6,578,264 GEOGRAPHIC INFORMATION Plant assets United States $ 710,255 $ 707,670 Canada 30,010 32,043 Total $ 740,265 $ 739,713 |
Provision for Income Taxes (Tab
Provision for Income Taxes (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of the Provision for Income Taxes | The provision for income taxes and related effective tax rates for the three months ended April 1, 2018 and March 26, 2017 , respectively, were as follows: Three months ended Provision for income taxes April 1, March 26, Current $ 11,408 $ 2,285 Deferred 5,697 5,058 Total $ 17,105 $ 7,343 Effective tax rate 23.1 % 24.1 % |
Guarantor and Nonguarantor St42
Guarantor and Nonguarantor Statements (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Guarantor And Nonguarantor Statements [Abstract] | |
Condensed Consolidating Balance Sheets | Pinnacle Foods Inc. Condensed Consolidating Balance Sheet April 1, 2018 Pinnacle Foods Inc. Pinnacle Foods Finance LLC Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations and Reclassifications Consolidated Total Current assets: Cash and cash equivalents $ — $ — $ 76,226 $ 1,458 $ — $ 77,684 Accounts receivable, net — — 289,752 11,466 — 301,218 Intercompany accounts receivable 107,602 — 1,235,500 1,442 (1,344,544 ) — Inventories, net — — 458,300 19,042 — 477,342 Other current assets — 6,970 9,855 664 — 17,489 Total current assets 107,602 6,970 2,069,633 34,072 (1,344,544 ) 873,733 Plant assets, net — — 710,255 30,010 — 740,265 Investment in subsidiaries 2,343,571 3,214,585 42,684 — (5,600,840 ) — Intercompany note receivable — 2,918,747 45,308 9,800 (2,973,855 ) — Tradenames — — 2,458,681 4,574 — 2,463,255 Other assets, net — 16,464 142,971 9,963 — 169,398 Deferred tax assets — 241,135 — 599 (241,734 ) — Goodwill — — 2,115,731 60,660 — 2,176,391 Total assets $ 2,451,173 $ 6,397,901 $ 7,585,263 $ 149,678 $ (10,160,973 ) $ 6,423,042 Current liabilities: Short-term borrowings $ — $ — $ 1,566 $ — $ — $ 1,566 Current portion of long-term obligations — 40,000 13,329 2 — 53,331 Accounts payable 4,825 — 317,015 5,828 — 327,668 Intercompany accounts payable — 1,323,136 — 21,408 (1,344,544 ) — Accrued trade marketing expense — — 37,433 3,627 — 41,060 Accrued liabilities 204 15,934 108,118 5,210 — 129,466 Dividends payable 40,884 — — — — 40,884 Total current liabilities 45,913 1,379,070 477,461 36,075 (1,344,544 ) 593,975 Long-term debt — 2,675,171 28,517 45 — 2,703,733 Intercompany note payable — — 2,908,285 65,570 (2,973,855 ) — Pension and other postretirement benefits — — 52,142 — — 52,142 Other long-term liabilities — 89 32,915 881 — 33,885 Deferred tax liabilities — — 871,358 3,317 (241,734 ) 632,941 Total liabilities 45,913 4,054,330 4,370,678 105,888 (4,560,133 ) 4,016,676 Commitments and contingencies (Note 15) Shareholders' equity: Pinnacle common stock 1,202 — — — — 1,202 Additional paid-in-capital 1,453,171 1,454,373 1,376,295 32,772 (2,863,440 ) 1,453,171 Retained earnings 1,010,472 916,673 1,869,511 12,001 (2,798,185 ) 1,010,472 Accumulated other comprehensive (loss)/gain (27,475 ) (27,475 ) (31,221 ) (2,089 ) 60,785 (27,475 ) Capital stock in treasury, at cost (32,110 ) — — — — (32,110 ) Total Pinnacle Foods Inc. and Subsidiaries stockholders' equity 2,405,260 2,343,571 3,214,585 42,684 (5,600,840 ) 2,405,260 Non-controlling interest — — — 1,106 — 1,106 Total Equity 2,405,260 2,343,571 3,214,585 43,790 (5,600,840 ) 2,406,366 Total liabilities and equity $ 2,451,173 $ 6,397,901 $ 7,585,263 $ 149,678 $ (10,160,973 ) $ 6,423,042 Pinnacle Foods Inc. Condensed Consolidating Balance Sheet December 31, 2017 Pinnacle Foods Inc. Pinnacle Foods Finance LLC Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations and Reclassifications Consolidated Total Current assets: Cash and cash equivalents $ — $ — $ 241,772 $ 8,056 $ — $ 249,828 Accounts receivable, net — — 272,401 9,221 — 281,622 Intercompany accounts receivable 102,335 — 1,001,329 — (1,103,664 ) — Inventories, net — — 469,813 19,993 — 489,806 Other current assets — 2,649 8,124 288 — 11,061 Total current assets 102,335 2,649 1,993,439 37,558 (1,103,664 ) 1,032,317 Plant assets, net — — 707,670 32,043 — 739,713 Investment in subsidiaries 2,317,445 3,180,932 43,056 — (5,541,433 ) — Intercompany note receivable — 2,907,799 45,226 9,800 (2,962,825 ) — Tradenames — — 2,458,681 4,693 — 2,463,374 Other assets, net — 8,802 145,489 10,608 — 164,899 Deferred tax assets — 233,391 — — (233,391 ) — Goodwill — — 2,115,731 62,230 — 2,177,961 Total assets $ 2,419,780 $ 6,333,573 $ 7,509,292 $ 156,932 $ (9,841,313 ) $ 6,578,264 Current liabilities: Short-term borrowings $ — $ — $ 2,739 $ — $ — $ 2,739 Current portion of long-term obligations — 22,620 11,311 3 — 33,934 Accounts payable — — 315,142 7,920 — 323,062 Intercompany accounts payable — 1,078,535 — 25,129 (1,103,664 ) — Accrued trade marketing expense — — 36,484 2,491 — 38,975 Accrued liabilities 178 19,913 95,010 7,030 — 122,131 Dividends payable 40,470 — — — — 40,470 Total current liabilities 40,648 1,121,068 460,686 42,573 (1,103,664 ) 561,311 Long-term debt — 2,894,962 30,594 38 — 2,925,594 Intercompany note payable — — 2,896,811 66,014 (2,962,825 ) — Pension and other postretirement benefits — — 53,251 — — 53,251 Other long-term liabilities — 98 32,971 968 — 34,037 Deferred tax liabilities — — 854,047 3,177 (233,391 ) 623,833 Total liabilities 40,648 4,016,128 4,328,360 112,770 (4,299,880 ) 4,198,026 Commitments and contingencies (Note 15) Shareholders' equity: Pinnacle common stock 1,200 — — — — 1,200 Additional paid-in-capital 1,453,054 1,454,253 1,376,175 32,771 (2,863,199 ) 1,453,054 Retained earnings 987,238 893,441 1,834,555 10,756 (2,738,752 ) 987,238 Accumulated other comprehensive loss (30,250 ) (30,249 ) (29,798 ) (471 ) 60,518 (30,250 ) Capital stock in treasury, at cost (32,110 ) — — — — (32,110 ) Total Pinnacle Foods Inc. and Subs stockholders equity 2,379,132 2,317,445 3,180,932 43,056 (5,541,433 ) 2,379,132 Non-controlling interest — — — 1,106 — 1,106 Total Equity 2,379,132 2,317,445 3,180,932 44,162 (5,541,433 ) 2,380,238 Total liabilities and shareholders' equity $ 2,419,780 $ 6,333,573 $ 7,509,292 $ 156,932 $ (9,841,313 ) $ 6,578,264 |
Condensed Consolidating Statements of Operations and Comprehensive Earnings | Pinnacle Foods Inc. Condensed Consolidating Statement of Operations and Comprehensive Earnings For the three months ended April 1, 2018 Pinnacle Foods Inc. Pinnacle Foods Finance LLC Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total Net sales $ — $ — $ 764,192 $ 41,374 $ (26,734 ) $ 778,832 Cost of products sold — — 562,753 36,265 (26,616 ) 572,402 Gross profit — — 201,439 5,109 (118 ) 206,430 Marketing and selling expenses — — 48,567 660 — 49,227 Administrative expenses — — 33,039 1,635 — 34,674 Research and development expenses — — 4,581 183 — 4,764 Intercompany royalties — — (167 ) 167 — — Intercompany management fees — — — 118 (118 ) — Intercompany technical service fees — — — — — — Other (income) expense, net — 525 2,156 184 — 2,865 Equity in (earnings) loss of investees (56,914 ) (73,967 ) (1,483 ) — 132,364 — (56,914 ) (73,442 ) 86,693 2,947 132,246 91,530 Operating income 56,914 73,442 114,746 2,162 (132,364 ) 114,900 Non-operating income — — 801 — — 801 Earnings before interest and taxes 56,914 73,442 115,547 2,162 (132,364 ) 115,701 Intercompany interest (income) expense — (18,752 ) 18,533 219 — — Interest expense — 41,135 742 17 — 41,894 Interest income — — 200 12 — 212 Earnings before income taxes 56,914 51,059 96,472 1,938 (132,364 ) 74,019 (Benefit) provision for income taxes — (5,855 ) 22,505 455 — 17,105 Net earnings 56,914 56,914 73,967 1,483 (132,364 ) 56,914 Less: Net loss attributable to non-controlling interest — — — — — — Net earnings attributable to Pinnacle Foods, Inc. and Subsidiaries common stockholders $ 56,914 $ 56,914 $ 73,967 $ 1,483 $ (132,364 ) $ 56,914 Total comprehensive earnings 65,018 65,018 72,543 (136 ) (137,425 ) 65,018 Less: Comprehensive loss attributable to non-controlling interest — — — — — — Comprehensive earnings attributable to Pinnacle Foods, Inc. and Subsidiaries $ 65,018 $ 65,018 $ 72,543 $ (136 ) $ (137,425 ) $ 65,018 Pinnacle Foods Inc. Condensed Consolidating Statement of Operations and Comprehensive Earnings For the three months ended March 26, 2017 Pinnacle Foods Inc. Pinnacle Foods Finance LLC Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations Consolidated Total Net sales $ — $ — $ 754,587 $ 36,694 $ (25,207 ) $ 766,074 Cost of products sold — 546,212 33,856 (24,567 ) 555,501 Gross profit — — 208,375 2,838 (640 ) 210,573 Marketing and selling expenses — — 54,703 891 — 55,594 Administrative expenses — — 34,385 1,626 — 36,011 Research and development expenses — — 3,837 184 — 4,021 Intercompany royalties — — (188 ) 188 — Intercompany management fees 391 (391 ) — Intercompany technical service fees — — — 249 (249 ) — Other expense, net (233 ) 4,020 443 — 4,230 Equity in (earnings) loss of investees (22,926 ) (58,177 ) 1,352 — 79,751 — (22,926 ) (58,410 ) 98,109 3,972 79,111 99,856 Operating income 22,926 58,410 110,266 (1,134 ) (79,751 ) 110,717 Non-operating income — — 491 — — 491 Earnings before interest and taxes 22,926 58,410 110,757 (1,134 ) (79,751 ) 111,208 Intercompany interest (income) expense — (22,305 ) 22,087 218 — — Interest expense — 80,170 551 10 — 80,731 Interest income — — 10 5 — 15 Earnings before income taxes 22,926 545 88,129 (1,357 ) (79,751 ) 30,492 (Benefit) provision for income taxes — (22,381 ) 29,952 (228 ) — 7,343 Net earnings 22,926 22,926 58,177 (1,129 ) (79,751 ) 23,149 Less: Net (loss) earnings attributable to non-controlling interest — — — 223 — 223 Net earnings (loss) attributable to Pinnacle Foods, Inc. and Subsidiaries common stockholders $ 22,926 $ 22,926 $ 58,177 $ (1,352 ) $ (79,751 ) $ 22,926 Total comprehensive earnings (loss) 38,033 38,033 59,681 246 (97,737 ) 38,256 Less: Comprehensive (loss) attributable to non-controlling interest — — — 223 — 223 Comprehensive earnings (loss) attributable to Pinnacle Foods, Inc. and Subsidiaries $ 38,033 $ 38,033 $ 59,681 $ 23 $ (97,737 ) $ 38,033 |
Condensed Consolidating Statements of Cash Flows | Pinnacle Foods Inc. Condensed Consolidating Statement of Cash Flows For the three months ended April 1, 2018 Pinnacle Foods Inc. Pinnacle Foods Finance LLC Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations and Reclassifications Consolidated Total Cash flows from operating activities Net cash (used in) provided by operating activities $ — $ (4,890 ) $ 124,927 $ 1,541 $ — $ 121,578 Cash flows from investing activities Intercompany accounts receivable/payable — 218,077 8,451 — (226,528 ) — Investment in Subsidiary 37,932 38,890 — — (76,822 ) — Capital expenditures — — (35,800 ) (76 ) — (35,876 ) Other investing — — — 608 — 608 Net cash provided by (used in) investing activities 37,932 256,967 (27,349 ) 532 (303,350 ) (35,268 ) Cash flows from financing activities Net proceeds from issuance of common stock 762 — — — — 762 Taxes paid related to net share settlement of equity awards (99 ) — — — — (99 ) Dividends paid (38,595 ) — — — — (38,595 ) Proceeds from bank term loans — 2,039,380 — — — 2,039,380 Repayments of long-term obligations — (2,249,380 ) (979 ) — — (2,250,359 ) Repayments of short-term borrowing — — (1,173 ) — — (1,173 ) Intercompany accounts receivable/payable — — (218,077 ) (8,451 ) 226,528 — Return of capital — (37,932 ) (38,890 ) — 76,822 — Repayment of capital lease obligations — — (4,005 ) (31 ) — (4,036 ) Debt acquisition costs — (4,145 ) — — — (4,145 ) Net cash (used in) provided by financing activities (37,932 ) (252,077 ) (263,124 ) (8,482 ) 303,350 (258,265 ) Effect of exchange rate changes on cash (189 ) (189 ) Net change in cash and cash equivalents — — (165,546 ) (6,598 ) — (172,144 ) Cash and cash equivalents - beginning of period — — 241,772 8,056 — 249,828 Cash and cash equivalents - end of period $ — $ — $ 76,226 $ 1,458 $ — $ 77,684 Pinnacle Foods Inc. Condensed Consolidating Statement of Cash Flows For the three months ended March 26, 2017 Pinnacle Foods Inc. Pinnacle Foods Finance LLC Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminations and Reclassifications Consolidated Total Cash flows from operating activities Net cash provided by (used in) operating activities $ (16,463 ) $ 76,870 $ 2,586 $ — $ 62,993 Cash flows from investing activities Intercompany accounts receivable/payable — 235,763 7,580 — (243,343 ) — Investment in subsidiaries 28,011 24,271 — — (52,282 ) — Capital expenditures — — (28,744 ) (499 ) — (29,243 ) Sale of plant assets — — — 679 — 679 Net cash (used in) provided by investing activities 28,011 260,034 (21,164 ) 180 (295,625 ) (28,564 ) Cash flows from financing activities Net proceeds from the issuance of common stock 5,894 — — — — 5,894 Taxes paid related to net share settlement of equity awards (303 ) — — — — (303 ) Dividends paid (33,602 ) — — — — (33,602 ) Proceeds from bank term loan — 2,262,000 — — — 2,262,000 Repayments of long-term obligations — (2,464,750 ) (950 ) — — (2,465,700 ) Proceeds from short-term borrowing — — 1,634 — — 1,634 Repayments of short-term borrowing — — (1,068 ) — — (1,068 ) Intercompany accounts receivable/payable — — (235,763 ) (7,580 ) 243,343 — Return of capital — (28,011 ) (24,271 ) — 52,282 — Repayment of capital lease obligations — — (2,206 ) (18 ) — (2,224 ) Debt acquisition costs — (12,810 ) — — — (12,810 ) Net cash (used in) provided by financing activities (28,011 ) (243,571 ) (262,624 ) (7,598 ) 295,625 (246,179 ) Effect of exchange rate changes on cash — — — 128 — 128 Net change in cash and cash equivalents — — (206,918 ) (4,704 ) — (211,622 ) Cash and cash equivalents - beginning of period — — 341,238 11,838 — 353,076 Cash and cash equivalents - end of period $ — $ — $ 134,320 $ 7,134 $ — $ 141,454 |
Summary of Business Activities
Summary of Business Activities (Details) | May 08, 2015shares | Apr. 01, 2018segment | Apr. 02, 2007 |
Subsidiary, Sale of Stock [Line Items] | |||
Number of operating segments | segment | 4 | ||
Blackstone | |||
Subsidiary, Sale of Stock [Line Items] | |||
Ownership percentage | 98.00% | ||
Number of shares sold by company (in shares) | shares | 5,000,000 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Thousands | Dec. 15, 2017 | Apr. 01, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 2,176,391 | $ 2,177,961 | |
Beaver Dam acquisition | |||
Business Acquisition [Line Items] | |||
Payments to acquire business | $ 37,500 | ||
Goodwill | 10,653 | ||
Transaction costs | $ 100 |
Acquisitions - Summary of the A
Acquisitions - Summary of the Allocation of the Total Cost of the Acquisition to Assets Acquired (Details) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 | Dec. 15, 2017 |
Assets acquired: | |||
Goodwill | $ 2,176,391 | $ 2,177,961 | |
Beaver Dam acquisition | |||
Assets acquired: | |||
Land | $ 700 | ||
Buildings | 22,043 | ||
Plant assets | 4,091 | ||
Goodwill | 10,653 | ||
Fair value of assets acquired | $ 37,487 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Subject to Recurring Fair Value (Details) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 |
Assets | ||
Derivatives assets | $ 22,829 | $ 10,809 |
Liabilities | ||
Derivative liabilities | 179 | 1,086 |
Recurring | Level 1 | ||
Assets | ||
Total assets at fair value | 0 | 0 |
Liabilities | ||
Total liabilities at fair value | 0 | 0 |
Recurring | Level 2 | ||
Assets | ||
Total assets at fair value | 22,829 | 10,809 |
Liabilities | ||
Total liabilities at fair value | 179 | 1,086 |
Recurring | Level 3 | ||
Assets | ||
Total assets at fair value | 0 | 0 |
Liabilities | ||
Total liabilities at fair value | 0 | 0 |
Recurring | Interest rate derivatives | Level 1 | ||
Assets | ||
Derivatives assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Recurring | Interest rate derivatives | Level 2 | ||
Assets | ||
Derivatives assets | 20,965 | 8,194 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Recurring | Interest rate derivatives | Level 3 | ||
Assets | ||
Derivatives assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Recurring | Foreign currency derivatives | Level 1 | ||
Assets | ||
Derivatives assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Recurring | Foreign currency derivatives | Level 2 | ||
Assets | ||
Derivatives assets | 15 | 0 |
Liabilities | ||
Derivative liabilities | 1 | 750 |
Recurring | Foreign currency derivatives | Level 3 | ||
Assets | ||
Derivatives assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Recurring | Commodity derivatives | Level 1 | ||
Assets | ||
Derivatives assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Recurring | Commodity derivatives | Level 2 | ||
Assets | ||
Derivatives assets | 1,849 | 2,615 |
Liabilities | ||
Derivative liabilities | 178 | 336 |
Recurring | Commodity derivatives | Level 3 | ||
Assets | ||
Derivatives assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value | Recurring | ||
Assets | ||
Total assets at fair value | 22,829 | 10,809 |
Liabilities | ||
Total liabilities at fair value | 179 | 1,086 |
Fair Value | Recurring | Interest rate derivatives | ||
Assets | ||
Derivatives assets | 20,965 | 8,194 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value | Recurring | Foreign currency derivatives | ||
Assets | ||
Derivatives assets | 15 | 0 |
Liabilities | ||
Derivative liabilities | 1 | 750 |
Fair Value | Recurring | Commodity derivatives | ||
Assets | ||
Derivatives assets | 1,849 | 2,615 |
Liabilities | ||
Derivative liabilities | $ 178 | $ 336 |
Other Expense, net - Schedule o
Other Expense, net - Schedule of Other Expense (Income), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
Other Income and Expenses [Abstract] | ||
Amortization of intangibles/other assets | $ 2,328 | $ 4,542 |
Foreign exchange losses/(gains) | 525 | (233) |
Royalty income and other | 12 | (79) |
Total other expense, net | $ 2,865 | $ 4,230 |
Equity-Based Compensation Exp48
Equity-Based Compensation Expense and Earnings Per Share - Schedule of Equity-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Pre-tax equity-based compensation expense | $ 4,279 | $ 4,109 |
Income tax benefit | (851) | (1,561) |
Net equity-based compensation expense | 3,428 | 2,548 |
Cost of products sold | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Pre-tax equity-based compensation expense | 606 | 515 |
Marketing and selling expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Pre-tax equity-based compensation expense | 509 | 1,167 |
Administrative expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Pre-tax equity-based compensation expense | 2,987 | 2,307 |
Research and development expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Pre-tax equity-based compensation expense | $ 177 | $ 120 |
Equity-Based Compensation Exp49
Equity-Based Compensation Expense and Earnings Per Share - Plan Narrative (Details) - $ / shares | 3 Months Ended | ||
Apr. 01, 2018 | Mar. 26, 2017 | Mar. 27, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 318,583 | 20,904 | |
2013 Omnibus Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 11,300,000 | ||
Performance shares | 2013 Omnibus Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Stock options | 2013 Omnibus Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, grants in period (in shares) | 439,110 | ||
Options, grants in period, grant date fair value (in dollars per share) | $ 10.06 | ||
Option exercise price (in dollars per share) | $ 54.10 | ||
PSU's and PS's | 2013 Omnibus Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock grants in period (in shares) | 141,628 | ||
Stock grants in period, grant date fair value (in dollars per share) | $ 60.30 | ||
Restricted Stock Units (RSUs) | 2013 Omnibus Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock grants in period (in shares) | 185,241 | ||
Stock grants in period, grant date fair value (in dollars per share) | $ 55.29 | ||
Minimum | Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of total award | 0.00% | ||
Maximum | Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of total award | 200.00% |
Equity-Based Compensation Exp50
Equity-Based Compensation Expense and Earnings Per Share - Schedule of Weighted Average Number of Shares (Details) - shares | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Weighted-average common shares (in shares) | 118,496,215 | 117,623,753 |
Effect of dilutive securities: (in shares) | 1,316,517 | 1,707,795 |
Dilutive potential common shares (in shares) | 119,812,732 | 119,331,548 |
Accumulated Other Comprehensi51
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning | $ 2,380,238 | $ 1,948,942 |
Net current period other comprehensive (loss)/income | 8,104 | 15,107 |
Balance, ending | 2,406,366 | 1,963,150 |
Accumulated Other Comprehensive Loss | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning | (30,250) | (51,569) |
Other comprehensive (loss)/income before reclassification | 7,963 | 1,416 |
Amounts reclassified from accumulated other comprehensive loss | 141 | 13,691 |
Net current period other comprehensive (loss)/income | 8,104 | 15,107 |
Adoption of ASU 2018-02 | (5,329) | |
Balance, ending | (27,475) | (36,462) |
Currency translation adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning | 2,095 | (3,989) |
Other comprehensive (loss)/income before reclassification | (2,178) | 1,113 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Net current period other comprehensive (loss)/income | (2,178) | 1,113 |
Adoption of ASU 2018-02 | 0 | |
Balance, ending | (83) | (2,876) |
Gains (Losses) on cash flow hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning | 6,571 | (8,234) |
Other comprehensive (loss)/income before reclassification | 10,141 | 303 |
Amounts reclassified from accumulated other comprehensive loss | (54) | 13,524 |
Net current period other comprehensive (loss)/income | 10,087 | 13,827 |
Adoption of ASU 2018-02 | 1,088 | |
Balance, ending | 17,746 | 5,593 |
Change in pensions | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning | (38,916) | (39,346) |
Other comprehensive (loss)/income before reclassification | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 195 | 167 |
Net current period other comprehensive (loss)/income | 195 | 167 |
Adoption of ASU 2018-02 | (6,417) | |
Balance, ending | $ (45,138) | $ (39,179) |
Accumulated Other Comprehensi52
Accumulated Other Comprehensive Loss - Reclassifications out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense | $ (41,894) | $ (80,731) |
Cost of products sold | (572,402) | (555,501) |
Earnings before income taxes | 74,019 | 30,492 |
Provision for income taxes | (17,105) | (7,343) |
Net earnings | 56,914 | 23,149 |
Amounts Reclassified from AOCL | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net earnings | (141) | (13,691) |
Gains and (losses) on financial instrument contracts | Amounts Reclassified from AOCL | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Earnings before income taxes | 71 | (21,875) |
Provision for income taxes | (17) | 8,351 |
Net earnings | 54 | (13,524) |
Pension actuarial assumption adjustments | Amounts Reclassified from AOCL | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of products sold | (259) | (269) |
Provision for income taxes | 64 | 102 |
Net earnings | (195) | (167) |
Interest rate contracts | Gains and (losses) on financial instrument contracts | Amounts Reclassified from AOCL | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense | 145 | (21,774) |
Foreign exchange contracts | Gains and (losses) on financial instrument contracts | Amounts Reclassified from AOCL | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of products sold | $ (74) | $ (101) |
Balance Sheet Information - Sch
Balance Sheet Information - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 |
Accounts Receivable, Net, Current [Abstract] | ||
Customers | $ 300,735 | $ 280,086 |
Allowances for cash discounts, bad debts and returns | (10,359) | (10,036) |
Subtotal | 290,376 | 270,050 |
Other receivables | 10,842 | 11,572 |
Total | $ 301,218 | $ 281,622 |
Balance Sheet Information - S54
Balance Sheet Information - Schedule of Inventories (Details) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 |
Inventory, Net [Abstract] | ||
Raw materials | $ 86,078 | $ 78,567 |
Work in progress | 47,878 | 65,800 |
Finished product | 343,386 | 345,439 |
Total | $ 477,342 | $ 489,806 |
Balance Sheet Information - S55
Balance Sheet Information - Schedule of Plant Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 01, 2018 | Mar. 26, 2017 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Plant assets, gross | $ 1,285,390 | $ 1,305,915 | |
Accumulated depreciation | (545,125) | (566,202) | |
Total | 740,265 | 739,713 | |
Depreciation | 24,600 | $ 22,500 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Plant assets, gross | 15,648 | 15,648 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Plant assets, gross | 327,384 | 327,501 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Plant assets, gross | 879,320 | 898,728 | |
Projects in progress | |||
Property, Plant and Equipment [Line Items] | |||
Plant assets, gross | 63,038 | 64,038 | |
Assets under capital lease | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation | (19,500) | (18,600) | |
Total | $ 47,600 | $ 44,600 |
Balance Sheet Information - S56
Balance Sheet Information - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 |
Accrued Liabilities, Current [Abstract] | ||
Employee compensation and benefits | $ 43,105 | $ 39,699 |
Interest payable | 16,317 | 19,254 |
Consumer coupons | 3,924 | 2,400 |
Accrued restructuring charges (Note 11) | 370 | 1,414 |
Accrued financial instrument contracts (Note 14) | 90 | 988 |
Accrued broker commissions | 6,958 | 6,994 |
Accrued income taxes | 36,266 | 26,805 |
Other | 22,436 | 24,577 |
Total | $ 129,466 | $ 122,131 |
Balance Sheet Information - S57
Balance Sheet Information - Schedule of Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 |
Liabilities, Noncurrent [Abstract] | ||
Employee compensation and benefits | $ 14,354 | $ 14,197 |
Long-term rent liability and deferred rent allowances | 5,915 | 6,217 |
Liability for uncertain tax positions | 11,003 | 11,140 |
Accrued financial instrument contracts (Note 14) | 89 | 98 |
Other | 2,524 | 2,385 |
Total | $ 33,885 | $ 34,037 |
Goodwill, Tradenames and Othe58
Goodwill, Tradenames and Other Assets - Schedule of Goodwill by Segment (Details) $ in Thousands | 3 Months Ended |
Apr. 01, 2018USD ($) | |
Goodwill [Roll Forward] | |
Balance, December 31, 2017 | $ 2,177,961 |
Foreign currency adjustment | (1,570) |
Balance, April 1, 2018 | 2,176,391 |
Frozen | |
Goodwill [Roll Forward] | |
Balance, December 31, 2017 | 764,824 |
Foreign currency adjustment | (1,570) |
Balance, April 1, 2018 | 763,254 |
Grocery | |
Goodwill [Roll Forward] | |
Balance, December 31, 2017 | 860,972 |
Foreign currency adjustment | 0 |
Balance, April 1, 2018 | 860,972 |
Boulder | |
Goodwill [Roll Forward] | |
Balance, December 31, 2017 | 364,883 |
Foreign currency adjustment | |
Balance, April 1, 2018 | 364,883 |
Specialty | |
Goodwill [Roll Forward] | |
Balance, December 31, 2017 | 187,282 |
Foreign currency adjustment | 0 |
Balance, April 1, 2018 | $ 187,282 |
Goodwill, Tradenames and Othe59
Goodwill, Tradenames and Other Assets - Schedule of Tradenames by Segment (Details) | 3 Months Ended | ||
Apr. 01, 2018USD ($)tradename | Sep. 24, 2017USD ($)tradename | Jun. 25, 2017USD ($) | |
Tradenames | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Balance, December 31, 2017 | $ 2,463,374,000 | ||
Foreign currency adjustment | (119,000) | ||
Balance, April 1, 2018 | 2,463,255,000 | ||
Tradenames | Frozen | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Balance, December 31, 2017 | 738,344,000 | ||
Foreign currency adjustment | (119,000) | ||
Balance, April 1, 2018 | 738,225,000 | ||
Tradename impairment charges | $ 27,400,000 | ||
Tradenames | Grocery | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Balance, December 31, 2017 | 1,253,622,000 | ||
Foreign currency adjustment | 0 | ||
Balance, April 1, 2018 | 1,253,622,000 | ||
Tradenames | Boulder | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Balance, December 31, 2017 | 442,808,000 | ||
Foreign currency adjustment | 0 | ||
Balance, April 1, 2018 | 442,808,000 | ||
Tradenames | Specialty | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Balance, December 31, 2017 | 28,600,000 | ||
Foreign currency adjustment | 0 | ||
Balance, April 1, 2018 | 28,600,000 | ||
Celeste, Synder of Berlin, Nalley, Bernstein, and Swanson tradenames | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Balance, April 1, 2018 | $ 25,400,000 | ||
Increase in weighted average cost of capital assumed | 0.0050 | ||
Celeste tradename | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Balance, April 1, 2018 | $ 24,800,000 | ||
Snyder of Berlin tradename | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Balance, April 1, 2018 | 6,500,000 | ||
Nalley tradename | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Balance, April 1, 2018 | 4,200,000 | ||
Bernstein tradename | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Balance, April 1, 2018 | 3,100,000 | ||
Swanson tradename | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Balance, April 1, 2018 | 500,000 | ||
Aunt Jemima tradename | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Balance, December 31, 2017 | $ 0 | ||
Balance, April 1, 2018 | $ 0 | ||
Five additional impaired tradenames | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Balance, April 1, 2018 | $ 359,300,000 | ||
Number of impaired tradenames | tradename | 5 | 3 | |
Indefinite-lived tradenames, percentage of fair value in excess of carrying value | 15.00% |
Goodwill, Tradenames and Othe60
Goodwill, Tradenames and Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, Gross Carrying Amount | $ 239,270 | $ 240,580 | |
Finite-lived intangible assets, Accumulated Amortization | (112,465) | (111,433) | |
Finite-lived intangible assets, Net | 126,805 | 129,147 | |
Financial instruments | 15,859 | 8,160 | |
Other, Gross Carrying Amount | 31,786 | 32,607 | |
Other, Accumulated Amortization | (5,052) | (5,015) | |
Other, Net | 26,734 | 27,592 | |
Total other assets, net | 169,398 | $ 164,899 | |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |||
Amortization of intangible assets | 2,328 | $ 4,542 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Estimated amortization expense, remainder of 2018 | 7,000 | ||
Estimated amortization expense, 2019 | 8,600 | ||
Estimated amortization expense, 2020 | 7,900 | ||
Estimated amortization expense, 2021 | 6,600 | ||
Estimated amortization expense, 2022 | 6,400 | ||
Estimated amortization expense, thereafter | $ 90,200 | ||
Recipes | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Life | 10 years | 10 years | |
Finite-lived intangible assets, Gross Carrying Amount | $ 51,498 | $ 51,514 | |
Finite-lived intangible assets, Accumulated Amortization | (46,636) | (46,458) | |
Finite-lived intangible assets, Net | $ 4,862 | $ 5,056 | |
Customer relationships - Distributors | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Life | 34 years | 34 years | |
Finite-lived intangible assets, Gross Carrying Amount | $ 176,372 | $ 176,376 | |
Finite-lived intangible assets, Accumulated Amortization | (61,455) | (59,681) | |
Finite-lived intangible assets, Net | $ 114,917 | $ 116,695 | |
Customer relationships - Food Service | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Life | 10 years | 10 years | |
Finite-lived intangible assets, Gross Carrying Amount | $ 11,400 | $ 11,400 | |
Finite-lived intangible assets, Accumulated Amortization | (4,374) | (4,004) | |
Finite-lived intangible assets, Net | 7,026 | $ 7,396 | |
Customer relationships - Private Label | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Life | 7 years | ||
Finite-lived intangible assets, Gross Carrying Amount | $ 1,290 | ||
Finite-lived intangible assets, Accumulated Amortization | (1,290) | ||
Finite-lived intangible assets, Net | 0 | ||
Operating segments | Frozen | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, Net | 38,630 | 39,229 | |
Operating segments | Grocery | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, Net | 46,199 | 46,888 | |
Operating segments | Boulder | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, Net | 32,416 | 33,057 | |
Operating segments | Specialty | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, Net | $ 9,560 | $ 9,973 |
Restructuring Charges - Narrati
Restructuring Charges - Narrative (Details) - Aunt Jemima retail and foodservice frozen breakfast products exit - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Jun. 25, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and impairment charges | $ 63,200 | $ 63,200 |
Accelerated depreciation charges | 22,600 | |
Inventory obsolescence | 4,600 | |
Employee termination costs | 1,500 | |
Contract termination and other costs | 3,300 | |
Restructuring charges | 0 | |
Frozen | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and impairment charges | 48,800 | |
Specialty | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and impairment charges | 14,400 | |
Tradenames | ||
Restructuring Cost and Reserve [Line Items] | ||
Intangible asset impairment charge | $ 31,200 | |
Cost of products sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and impairment charges | 32,000 | |
Impairment of tradenames | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and impairment charges | 27,400 | |
Other expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and impairment charges | $ 3,800 |
Restructuring Charges - Accrued
Restructuring Charges - Accrued Restructuring Charges (Details) - Aunt Jemima retail and foodservice frozen breakfast products exit $ in Thousands | 3 Months Ended |
Apr. 01, 2018USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 1,126 |
Expense | 0 |
Payments | (756) |
Ending balance | $ 370 |
Debt and Interest Expense - Sch
Debt and Interest Expense - Schedule of Long-term and Short-term Debt Instruments (Details) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 |
Short-term Debt [Abstract] | ||
Short-term borrowings | $ 1,566 | $ 2,739 |
Long-term Debt, Current and Noncurrent [Abstract] | ||
Unamortized discount on long term debt and deferred financing costs | (14,209) | (21,846) |
Capital lease obligations | 41,893 | 41,012 |
Long-term debt, including capital lease obligations less unamortized discount on long term debt and deferred financing costs | 2,757,064 | 2,959,528 |
Less: current portion of long-term obligations | 53,331 | 33,934 |
Total long-term debt | 2,703,733 | 2,925,594 |
Secured debt | Tranche A Term Loans | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Long-term debt | 790,000 | 0 |
Secured debt | New Tranche B Term Loans | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Long-term debt | 1,239,380 | 0 |
Secured debt | Tranche B Term Loans | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Long-term debt | 0 | 2,239,380 |
Senior notes | 4.875% Senior Notes | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Senior notes | $ 350,000 | 350,000 |
Stated interest rate | 4.875% | |
Senior notes | 5.875% Senior Notes | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Senior notes | $ 350,000 | 350,000 |
Stated interest rate | 5.875% | |
Notes payable | 3.0% Note payable to Gilster Mary Lee Corporation | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Note payable | $ 0 | $ 982 |
Stated interest rate | 3.00% |
Debt and Interest Expense - S64
Debt and Interest Expense - Schedule of Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
Debt Disclosure [Abstract] | ||
Interest expense | $ 30,255 | $ 28,883 |
Amortization of debt acquisition costs | 871 | 1,580 |
Non-cash recognition of deferred costs related to refinancing | 10,913 | 28,494 |
Settlement of hedges related to refinancing | 0 | 20,722 |
Interest rate swap (gains)/losses | (145) | 1,052 |
Total interest expense | $ 41,894 | $ 80,731 |
Debt and Interest Expense - Fou
Debt and Interest Expense - Fourth Amendment (Details) - USD ($) | Mar. 15, 2018 | Feb. 03, 2017 | Apr. 01, 2018 | Mar. 26, 2017 |
Debt Instrument [Line Items] | ||||
Debt acquisition costs | $ 4,145,000 | $ 12,810,000 | ||
Recognition of deferred costs related to refinancing | $ 10,913,000 | $ 28,494,000 | ||
Secured debt | ||||
Debt Instrument [Line Items] | ||||
Repayment of existing indebtedness | $ 213,100,000 | |||
Secured debt | New Tranche B Term Loans | ||||
Debt Instrument [Line Items] | ||||
Term of debt instrument | 7 years | |||
Face amount | $ 2,262,000,000 | |||
Secured debt | Tranche B Term Loans | ||||
Debt Instrument [Line Items] | ||||
Amount of indebtedness repaid | $ 2,239,400,000 | |||
Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Term of debt instrument | 5 years | |||
Face amount | $ 225,000,000 | |||
Fourth Amended and Restated Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Debt acquisition costs | 4,100,000 | |||
Recognition of deferred costs related to refinancing | 10,900,000 | |||
Fourth Amended and Restated Credit Agreement | Secured debt | ||||
Debt Instrument [Line Items] | ||||
Repayment of existing indebtedness | $ 202,500,000 | |||
Fourth Amended and Restated Credit Agreement | Secured debt | New Tranche B Term Loans | ||||
Debt Instrument [Line Items] | ||||
Term of debt instrument | 6 years | |||
Face amount | $ 1,239,400,000 | |||
Fourth Amended and Restated Credit Agreement | Secured debt | Tranche A Term Loans | ||||
Debt Instrument [Line Items] | ||||
Term of debt instrument | 5 years | |||
Face amount | $ 800,000,000 | |||
Fourth Amended and Restated Credit Agreement | Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Term of debt instrument | 5 years | |||
Face amount | $ 300,000,000 |
Debt and Interest Expense - Ame
Debt and Interest Expense - Amended Credit Agreement (Details) | Mar. 15, 2018 | Feb. 03, 2017USD ($) | Apr. 01, 2018USD ($) | Mar. 26, 2017USD ($) |
Debt Instrument [Line Items] | ||||
Unamortized debt issuance costs | $ 4,145,000 | $ 12,810,000 | ||
Recognition of deferred costs resulting from the Refinancing | $ 10,913,000 | $ 28,494,000 | ||
Ownership interest | 100.00% | |||
Tranche G, H and I term loans | ||||
Debt Instrument [Line Items] | ||||
Unamortized debt issuance costs | $ 12,900,000 | |||
Recognition of deferred costs resulting from the Refinancing | 28,500,000 | |||
Secured debt | ||||
Debt Instrument [Line Items] | ||||
Repayment of existing indebtedness | $ 213,100,000 | |||
Secured debt | New Tranche B Term Loans | ||||
Debt Instrument [Line Items] | ||||
Term of debt instrument | 7 years | |||
Face amount | $ 2,262,000,000 | |||
Secured debt | Tranche G term loans due 2020 | ||||
Debt Instrument [Line Items] | ||||
Amount of indebtedness repaid | 1,409,600,000 | |||
Secured debt | Tranche H term loans due 2020 | ||||
Debt Instrument [Line Items] | ||||
Amount of indebtedness repaid | 507,900,000 | |||
Secured debt | Tranche I term loans due 2023 | ||||
Debt Instrument [Line Items] | ||||
Amount of indebtedness repaid | $ 544,500,000 | |||
Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Term of debt instrument | 5 years | |||
Face amount | $ 225,000,000 | |||
Revolving credit facility | Fifth Amendment to the Second Amended and Restated Credit Agreement, Feb 2017 | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage | 0.30% | |||
Federal funds effective rate | Secured debt | New Tranche B Term Loans | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
Eurocurrency rate | Secured debt | New Tranche B Term Loans | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.75% | |||
Base rate | Secured debt | New Tranche B Term Loans | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.75% | |||
Minimum | Eurocurrency rate | Secured debt | New Tranche B Term Loans | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.00% | |||
Minimum | Base rate | Secured debt | New Tranche B Term Loans | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
Secured debt | ||||
Debt Instrument [Line Items] | ||||
Required percentage of excess cash flow | 50.00% | |||
Percentage of quarterly installment amortized aggregate principal amount | 1.25% | |||
Secured debt | New Tranche B Term Loans | ||||
Long-term Debt, Fiscal Year Maturity | ||||
2,018 | $ 20,000,000 | |||
2,019 | 40,000,000 | |||
2,020 | 40,000,000 | |||
2,021 | 40,000,000 | |||
2,022 | 40,000,000 | |||
2,023 | $ 610,000,000 | |||
Secured debt | One-month eurodollar rate | New Tranche B Term Loans | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
Secured debt | Minimum | Eurocurrency rate | Tranche A Term Loans | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.00% | |||
Secured debt | Minimum | Base rate | Tranche A Term Loans | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
Letter of credit | ||||
Debt Instrument [Line Items] | ||||
Fronting fee, per annum | 0.125% | |||
Maximum borrowing capacity under the revolving credit facility | $ 50,000,000 | |||
Total net leverage ratio between 4.50 and 5.49 | Minimum | ||||
Debt Instrument [Line Items] | ||||
Leverage ratio | 4.50 | |||
Total net leverage ratio between 4.50 and 5.49 | Maximum | ||||
Debt Instrument [Line Items] | ||||
Leverage ratio | 5.49 | |||
Total net leverage ratio between 4.50 and 5.49 | Secured debt | ||||
Debt Instrument [Line Items] | ||||
Required percentage of excess cash flow | 25.00% | |||
Total net leverage ratio below 4.50 | Minimum | ||||
Debt Instrument [Line Items] | ||||
Leverage ratio | 4.50 | |||
Total net leverage ratio below 4.50 | Secured debt | ||||
Debt Instrument [Line Items] | ||||
Required percentage of excess cash flow | 0.00% | |||
Net first lien | Secured debt | ||||
Long-term Debt, Fiscal Year Maturity | ||||
Debt to EBITDA for the most recently concluded four consecutive fiscal quarters | 5.75 | |||
Restricted payments | Secured debt | ||||
Long-term Debt, Fiscal Year Maturity | ||||
Debt to EBITDA for the most recently concluded four consecutive fiscal quarters | 4.25 | |||
Amount of restricted payments for specified activities | $ 75,000,000 | |||
Percent of restricted payments for specified activities greater of the amount or percent of consolidated total assets | 2.00% | |||
Scenario 1 | Secured debt | Eurocurrency rate | Tranche A Term Loans | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.50% | |||
Scenario 1 | Secured debt | Base rate | Tranche A Term Loans | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
Scenario 1 | Secured debt | Maximum | Eurocurrency rate | Tranche A Term Loans | ||||
Debt Instrument [Line Items] | ||||
Leverage ratio | 3.75 | |||
Scenario 1 | Secured debt | Maximum | Base rate | Tranche A Term Loans | ||||
Debt Instrument [Line Items] | ||||
Leverage ratio | 3.75 | |||
Scenario 2 | Secured debt | Eurocurrency rate | Tranche A Term Loans | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.625% | |||
Scenario 2 | Secured debt | Base rate | Tranche A Term Loans | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.625% | |||
Scenario 2 | Secured debt | Minimum | Eurocurrency rate | Tranche A Term Loans | ||||
Debt Instrument [Line Items] | ||||
Leverage ratio | 3.75 | |||
Scenario 2 | Secured debt | Minimum | Base rate | Tranche A Term Loans | ||||
Debt Instrument [Line Items] | ||||
Leverage ratio | 3.75 | |||
Scenario 2 | Secured debt | Maximum | Eurocurrency rate | Tranche A Term Loans | ||||
Debt Instrument [Line Items] | ||||
Leverage ratio | 5 | |||
Scenario 2 | Secured debt | Maximum | Base rate | Tranche A Term Loans | ||||
Debt Instrument [Line Items] | ||||
Leverage ratio | 5 | |||
Scenario 3 | Secured debt | Eurocurrency rate | Tranche A Term Loans | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.75% | |||
Scenario 3 | Secured debt | Base rate | Tranche A Term Loans | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.75% | |||
Scenario 3 | Secured debt | Minimum | Eurocurrency rate | Tranche A Term Loans | ||||
Debt Instrument [Line Items] | ||||
Leverage ratio | 5 | |||
Scenario 3 | Secured debt | Minimum | Base rate | Tranche A Term Loans | ||||
Debt Instrument [Line Items] | ||||
Leverage ratio | 5 |
Debt and Interest Expense - Sen
Debt and Interest Expense - Senior Notes (Details) - Senior notes | 3 Months Ended |
Apr. 01, 2018 | |
4.875% Senior Notes | |
Debt Instrument [Line Items] | |
Stated interest rate | 4.875% |
5.875% Senior Notes | |
Debt Instrument [Line Items] | |
Stated interest rate | 5.875% |
Redemption prices, percent of outstanding principal | 100.00% |
Applicable premium, percentage of principal amount | 1.00% |
Percent that may be redeemed (up to) | 35.00% |
Early redemption, percent of principal amount required to be outstanding (at least) | 50.00% |
Early redemption, redemption period following closing date of offering | 120 days |
5.875% Senior Notes | Treasury Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 0.50% |
Debt and Interest Expense - S68
Debt and Interest Expense - Schedule of Redemption Price Percentages (Details) - Senior notes | 3 Months Ended |
Apr. 01, 2018 | |
4.875% Senior Notes | 2018 | |
Debt Instrument [Line Items] | |
Redemption prices, percent of outstanding principal | 101.219% |
4.875% Senior Notes | 2019 and thereafter | |
Debt Instrument [Line Items] | |
Redemption prices, percent of outstanding principal | 100.00% |
5.875% Senior Notes | |
Debt Instrument [Line Items] | |
Redemption prices, percent of outstanding principal | 100.00% |
5.875% Senior Notes | 2019 | |
Debt Instrument [Line Items] | |
Redemption prices, percent of outstanding principal | 104.406% |
5.875% Senior Notes | 2020 | |
Debt Instrument [Line Items] | |
Redemption prices, percent of outstanding principal | 102.938% |
5.875% Senior Notes | 2021 | |
Debt Instrument [Line Items] | |
Redemption prices, percent of outstanding principal | 101.469% |
5.875% Senior Notes | 2022 and thereafter | |
Debt Instrument [Line Items] | |
Redemption prices, percent of outstanding principal | 100.00% |
Debt and Interest Expense - Sum
Debt and Interest Expense - Summary of Debt Acquisition Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
Deferred Financing Cost Activity [Roll Forward] | ||
Gross Carrying Amount, beginning balance | $ 29,689 | |
Accumulated Amortization, beginning balance | (7,843) | |
Net, beginning balance | 21,846 | |
Additions | 4,145 | $ 12,810 |
Amortization | (869) | |
Recognition of deferred costs resulting from the Refinancing, gross | (12,936) | |
Recognition of deferred costs resulting from the Refinancing, accumulated amortization | 2,023 | |
Recognition of deferred costs resulting from the 2018 Refinancing | (10,913) | (28,494) |
Gross Carrying Amount, ending balance | 20,898 | |
Accumulated Amortization, ending balance | (6,689) | |
Net, ending balance | 14,209 | |
Secured debt | ||
Deferred Financing Cost Activity [Roll Forward] | ||
Amortization | $ (900) | $ (1,500) |
Debt and Interest Expense - S70
Debt and Interest Expense - Schedule of the Estimated Fair Value of the Company's Long-term Debt, Including the Current Portion (Details) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 |
Notes payable | 3.0% Note payable to Gilster Mary Lee Corporation | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.00% | |
Senior Notes | 4.875% Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.875% | |
Senior Notes | 5.875% Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.875% | |
Face Value | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | $ 2,729,380 | $ 2,940,362 |
Face Value | Secured debt | Tranche A Term Loans | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 790,000 | |
Face Value | Secured debt | New Tranche B Term Loans | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 1,239,380 | |
Face Value | Secured debt | Tranche B Term Loans | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 2,239,380 | |
Face Value | Notes payable | 3.0% Note payable to Gilster Mary Lee Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 982 | |
Face Value | Senior Notes | 4.875% Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 350,000 | 350,000 |
Face Value | Senior Notes | 5.875% Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 350,000 | 350,000 |
Fair Value | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 2,747,390 | 2,984,579 |
Fair Value | Secured debt | Tranche A Term Loans | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 790,000 | |
Fair Value | Secured debt | New Tranche B Term Loans | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 1,245,577 | |
Fair Value | Secured debt | Tranche B Term Loans | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 2,259,534 | |
Fair Value | Notes payable | 3.0% Note payable to Gilster Mary Lee Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 982 | |
Fair Value | Senior Notes | 4.875% Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 350,875 | 353,938 |
Fair Value | Senior Notes | 5.875% Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | $ 360,938 | $ 370,125 |
Pension and Retirement Plans -
Pension and Retirement Plans - Narrative (Details) | 3 Months Ended | 12 Months Ended |
Apr. 01, 2018USD ($)qualified_plannonqualified_plan | Dec. 31, 2017USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Number of qualified 401(k) plans | qualified_plan | 2 | |
Number of non-qualified plans | nonqualified_plan | 3 | |
Expected future contributions | $ 7,000,000 | |
Pension Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Company contributions | $ 0 | $ 300,000 |
Pension and Retirement Plans 72
Pension and Retirement Plans - Schedule of Net Periodic (Benefit) Cost, Pinnacle Foods (Details) - Pension Plan - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 1,871 | $ 1,993 |
Expected return on assets | (2,930) | (2,753) |
Amortization of actuarial loss | 259 | 269 |
Net periodic (benefit) | $ (801) | $ (491) |
Pension and Retirement Plans 73
Pension and Retirement Plans - Multi-employer Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
Retirement Benefits, Description [Abstract] | ||
Employer contributions | $ 0.2 | $ 0.2 |
Total contributions received by defined benefit plan (less than) | 5.00% |
Financial Instruments - Schedul
Financial Instruments - Schedule of Interest Rate Swaps (Details) | 3 Months Ended | |
Apr. 01, 2018USD ($)instrument | Mar. 26, 2017USD ($) | |
Cash flow hedging | Designated as hedging instrument | Interest rate swaps | ||
Derivative [Line Items] | ||
Number of Instruments | instrument | 14 | |
Current Notional Amount | $ 1,499,000,000 | |
Ineffective portion of the change in fair value recognized directly in earning, estimated for next twelve months | 6,400,000 | |
Amounts Reclassified from AOCL | ||
Derivative [Line Items] | ||
Accelerated interest expense, net | $ 13,200,000 | |
Accelerated interest expense | $ 20,700,000 | $ 20,700,000 |
Financial Instruments - Sched75
Financial Instruments - Schedule of Foreign Currency Exchange Contracts (Details) - Cash flow hedging - Designated as hedging instrument - CAD forward $ in Thousands | 3 Months Ended |
Apr. 01, 2018USD ($)instrument | |
Derivative [Line Items] | |
Number of Instruments | instrument | 9 |
Notional amount of hedged instruments | $ 21,018 |
Ineffective portion of the change in fair value recognized directly in earning, estimated for next twelve months | $ 0 |
Financial Instruments - Sched76
Financial Instruments - Schedule of Derivative Instruments Not Designated in Qualifying Hedging Relationships (Details) - Not designated as hedging instrument - Commodity derivatives | Apr. 01, 2018instrument |
Derivative [Line Items] | |
Number of Instruments | 46 |
Notional Purchased in Aggregate (gal, MMBTU, lb) | 7,382.598000 |
Financial Instruments - Sched77
Financial Instruments - Schedule of the Fair Value of Derivative Financial Instruments as well as Their Consolidated Balance Sheets Classification (Details) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 |
Not designated as hedging instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 1,849 | $ 2,615 |
Liability Derivatives | 178 | 336 |
Other current assets | Commodity contracts | Not designated as hedging instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 1,849 | 2,615 |
Other assets, net | Commodity contracts | Not designated as hedging instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 0 | 0 |
Accrued liabilities | Commodity contracts | Not designated as hedging instrument | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 89 | 238 |
Other long-term liabilities | Commodity contracts | Not designated as hedging instrument | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 89 | 98 |
Cash flow hedging | Designated as hedging instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 20,980 | 8,194 |
Liability Derivatives | 1 | 750 |
Cash flow hedging | Other current assets | Interest rate contracts | Designated as hedging instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 5,106 | 34 |
Cash flow hedging | Other current assets | Foreign exchange contracts | Designated as hedging instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 15 | 0 |
Cash flow hedging | Other assets, net | Interest rate contracts | Designated as hedging instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 15,859 | 8,160 |
Cash flow hedging | Other assets, net | Foreign exchange contracts | Designated as hedging instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 0 | |
Cash flow hedging | Accrued liabilities | Interest rate contracts | Designated as hedging instrument | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 0 | 0 |
Cash flow hedging | Accrued liabilities | Foreign exchange contracts | Designated as hedging instrument | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 1 | 750 |
Cash flow hedging | Other long-term liabilities | Interest rate contracts | Designated as hedging instrument | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 0 | $ 0 |
Cash flow hedging | Other long-term liabilities | Foreign exchange contracts | Designated as hedging instrument | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 0 |
Financial Instruments - Summary
Financial Instruments - Summary of Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 |
Total asset derivatives | ||
Gross Amounts Presented in the Consolidated Balance Sheet, Assets | $ 22,829 | $ 10,809 |
Gross Amounts Not Offset in the Consolidated Balance Sheet Subject to Netting Agreements, Assets | (179) | (1,086) |
Net Amount, Assets | 22,650 | 9,723 |
Total liability derivatives | ||
Gross Amounts Presented in the Consolidated Balance Sheet, Liabilities | 179 | 1,086 |
Gross Amounts Not Offset in the Consolidated Balance Sheet Subject to Netting Agreements, Liabilities | (179) | (1,086) |
Net Amount, Liabilities | $ 0 | $ 0 |
Financial Instruments - Sched79
Financial Instruments - Schedule of Derivative Financial Instruments on the Consolidated Statements of Operations and Accumulated Other Comprehensive (Loss) Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
Not designated as hedging instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized in Earnings | $ 381 | $ (1,969) |
Not designated as hedging instrument | Commodity contracts | Cost of products sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized in Earnings | 381 | (1,969) |
Cash flow hedging | Designated as hedging instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized in AOCL on Derivative | 13,605 | 495 |
Reclassified from AOCL into Earnings | 71 | (21,875) |
Cash flow hedging | Designated as hedging instrument | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized in AOCL on Derivative | 12,916 | 239 |
Cash flow hedging | Designated as hedging instrument | Interest rate contracts | Interest expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Reclassified from AOCL into Earnings | 145 | (21,774) |
Income/(Expense) related to Hedged Items | (11,598) | (10,852) |
Cash flow hedging | Designated as hedging instrument | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized in AOCL on Derivative | 689 | 256 |
Cash flow hedging | Designated as hedging instrument | Foreign exchange contracts | Cost of products sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Reclassified from AOCL into Earnings | (74) | (101) |
Income/(Expense) related to Hedged Items | (6,997) | (6,718) |
Amounts Reclassified from AOCL | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Accelerated interest expense | $ 20,700 | $ 20,700 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - Aunt Jemima frozen breakfast - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Apr. 01, 2018 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | ||
Inventory recall expense | $ 13 | |
Frozen | ||
Loss Contingencies [Line Items] | ||
Inventory recall expense | $ 6.5 | |
Specialty | ||
Loss Contingencies [Line Items] | ||
Inventory recall expense | $ 6.5 | |
Reduction to net sales | ||
Loss Contingencies [Line Items] | ||
Inventory recall expense | 10.8 | |
Freight and disposal costs | ||
Loss Contingencies [Line Items] | ||
Inventory recall expense | $ 2.2 |
Segments - Schedule of Segment
Segments - Schedule of Segment Reporting Information, by Segment (Details) $ in Thousands | 3 Months Ended | ||
Apr. 01, 2018USD ($)segment | Mar. 26, 2017USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | segment | 4 | ||
Net sales | $ 778,832 | $ 766,074 | |
Earnings before interest and taxes | 115,701 | 111,208 | |
Depreciation and amortization | 26,888 | 27,088 | |
Capital expenditures | 40,785 | 34,065 | |
Total assets | 6,423,042 | $ 6,578,264 | |
Plant assets | 740,265 | 739,713 | |
United States | |||
Segment Reporting Information [Line Items] | |||
Plant assets | 710,255 | 707,670 | |
Canada | |||
Segment Reporting Information [Line Items] | |||
Plant assets | 30,010 | 32,043 | |
Frozen | |||
Segment Reporting Information [Line Items] | |||
Net sales | 429,739 | 407,860 | |
Shelf stable and meal enhancers | |||
Segment Reporting Information [Line Items] | |||
Net sales | 237,675 | 247,406 | |
Desserts | |||
Segment Reporting Information [Line Items] | |||
Net sales | 77,748 | 77,246 | |
Snacks | |||
Segment Reporting Information [Line Items] | |||
Net sales | 33,670 | 33,562 | |
Operating segments | Frozen | |||
Segment Reporting Information [Line Items] | |||
Net sales | 344,871 | 320,942 | |
Earnings before interest and taxes | 53,711 | 50,922 | |
Depreciation and amortization | 11,634 | 10,569 | |
Capital expenditures | 24,274 | 13,318 | |
Total assets | 2,342,616 | 2,417,543 | |
Operating segments | Grocery | |||
Segment Reporting Information [Line Items] | |||
Net sales | 261,007 | 259,350 | |
Earnings before interest and taxes | 49,748 | 51,807 | |
Depreciation and amortization | 7,749 | 8,076 | |
Capital expenditures | 9,180 | 7,530 | |
Total assets | 2,724,171 | 2,787,209 | |
Operating segments | Boulder | |||
Segment Reporting Information [Line Items] | |||
Net sales | 97,756 | 97,292 | |
Earnings before interest and taxes | 11,851 | 6,672 | |
Depreciation and amortization | 4,352 | 3,761 | |
Capital expenditures | 3,892 | 7,745 | |
Total assets | 999,166 | 1,005,209 | |
Operating segments | Specialty | |||
Segment Reporting Information [Line Items] | |||
Net sales | 75,198 | 88,490 | |
Earnings before interest and taxes | 8,216 | 8,888 | |
Depreciation and amortization | 3,153 | 4,682 | |
Capital expenditures | 3,439 | 5,472 | |
Total assets | 346,602 | 357,040 | |
Unallocated corporate expenses | |||
Segment Reporting Information [Line Items] | |||
Earnings before interest and taxes | (7,825) | (7,081) | |
Total assets | 10,487 | $ 11,263 | |
Reportable geographical components | United States | |||
Segment Reporting Information [Line Items] | |||
Net sales | 764,193 | 754,587 | |
Reportable geographical components | Canada | |||
Segment Reporting Information [Line Items] | |||
Net sales | 41,374 | 36,694 | |
Intercompany | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ (26,735) | $ (25,207) |
Provision for Income Taxes - Sc
Provision for Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
Provision for income taxes | ||
Current | $ 11,408 | $ 2,285 |
Deferred | 5,697 | 5,058 |
Total | $ 17,105 | $ 7,343 |
Effective tax rate (percent) | 23.10% | 24.10% |
Provision for Income Taxes - Na
Provision for Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||
Statutory rate | 21.00% | 35.00% | |
Benefit for share based payments | (1.90%) | (12.40%) | |
Benefit for domestic production activities | 1.60% | ||
Benefit from change in valuation allowance | $ 0 | ||
State and local jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Change in enacted tax rate | 1.40% | ||
Domestic tax authority | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryovers | $ 408.3 | ||
Operating loss carryovers, annual limitation | 17.1 | ||
Exceeds Limitation | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryovers | $ 237.2 |
Recently Issued Accounting Pr84
Recently Issued Accounting Pronouncements - Additional Information (Details) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 |
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Decrease in AOCI | $ 27,475 | $ 30,250 |
Increase in retained earnings | 1,010,472 | $ 987,238 |
Adjustments for New Accounting Principle, Early Adoption | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Decrease in AOCI | 5,300 | |
Increase in retained earnings | $ 5,300 |
Guarantor and Nonguarantor St85
Guarantor and Nonguarantor Statements - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2017 | Mar. 26, 2017 | Dec. 25, 2016 |
Current assets: | ||||
Cash and cash equivalents | $ 77,684 | $ 249,828 | $ 141,454 | $ 353,076 |
Accounts receivable, net | 301,218 | 281,622 | ||
Intercompany accounts receivable | 0 | 0 | ||
Inventories, net | 477,342 | 489,806 | ||
Other current assets | 17,489 | 11,061 | ||
Total current assets | 873,733 | 1,032,317 | ||
Plant assets, net | 740,265 | 739,713 | ||
Investment in subsidiaries | 0 | 0 | ||
Intercompany note receivable | 0 | 0 | ||
Tradenames | 2,463,255 | 2,463,374 | ||
Other assets, net | 169,398 | 164,899 | ||
Deferred tax assets | 0 | 0 | ||
Goodwill | 2,176,391 | 2,177,961 | ||
Total assets | 6,423,042 | 6,578,264 | ||
Current liabilities: | ||||
Short-term borrowings | 1,566 | 2,739 | ||
Current portion of long-term obligations | 53,331 | 33,934 | ||
Accounts payable | 327,668 | 323,062 | ||
Intercompany accounts payable | 0 | 0 | ||
Accrued trade marketing expense | 41,060 | 38,975 | ||
Accrued liabilities | 129,466 | 122,131 | ||
Dividends payable | 40,884 | 40,470 | ||
Total current liabilities | 593,975 | 561,311 | ||
Long-term debt | 2,703,733 | 2,925,594 | ||
Intercompany note payable | 0 | 0 | ||
Pension and other postretirement benefits | 52,142 | 53,251 | ||
Other long-term liabilities | 33,885 | 34,037 | ||
Deferred tax liabilities | 632,941 | 623,833 | ||
Total liabilities | 4,016,676 | 4,198,026 | ||
Commitments and contingencies | ||||
Shareholders' equity: | ||||
Pinnacle common stock | 1,202 | 1,200 | ||
Additional paid-in-capital | 1,453,171 | 1,453,054 | ||
Retained earnings | 1,010,472 | 987,238 | ||
Accumulated other comprehensive (loss)/gain | (27,475) | (30,250) | ||
Capital stock in treasury, at cost | (32,110) | (32,110) | ||
Total Pinnacle Foods Inc. and subsidiaries shareholders' equity | 2,405,260 | 2,379,132 | ||
Non-controlling interest | 1,106 | 1,106 | ||
Total Equity | 2,406,366 | 2,380,238 | 1,963,150 | 1,948,942 |
Total liabilities and equity | 6,423,042 | 6,578,264 | ||
Reportable Legal Entities | Pinnacle Foods Inc. | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Intercompany accounts receivable | 107,602 | 102,335 | ||
Inventories, net | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | 107,602 | 102,335 | ||
Plant assets, net | 0 | 0 | ||
Investment in subsidiaries | 2,343,571 | 2,317,445 | ||
Intercompany note receivable | 0 | 0 | ||
Tradenames | 0 | 0 | ||
Other assets, net | 0 | 0 | ||
Deferred tax assets | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Total assets | 2,451,173 | 2,419,780 | ||
Current liabilities: | ||||
Short-term borrowings | 0 | 0 | ||
Current portion of long-term obligations | 0 | 0 | ||
Accounts payable | 4,825 | 0 | ||
Intercompany accounts payable | 0 | 0 | ||
Accrued trade marketing expense | 0 | 0 | ||
Accrued liabilities | 204 | 178 | ||
Dividends payable | 40,884 | 40,470 | ||
Total current liabilities | 45,913 | 40,648 | ||
Long-term debt | 0 | 0 | ||
Intercompany note payable | 0 | 0 | ||
Pension and other postretirement benefits | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Deferred tax liabilities | 0 | 0 | ||
Total liabilities | 45,913 | 40,648 | ||
Commitments and contingencies | ||||
Shareholders' equity: | ||||
Pinnacle common stock | 1,202 | 1,200 | ||
Additional paid-in-capital | 1,453,171 | 1,453,054 | ||
Retained earnings | 1,010,472 | 987,238 | ||
Accumulated other comprehensive (loss)/gain | (27,475) | (30,250) | ||
Capital stock in treasury, at cost | (32,110) | (32,110) | ||
Total Pinnacle Foods Inc. and subsidiaries shareholders' equity | 2,405,260 | 2,379,132 | ||
Non-controlling interest | 0 | 0 | ||
Total Equity | 2,405,260 | 2,379,132 | ||
Total liabilities and equity | 2,451,173 | 2,419,780 | ||
Reportable Legal Entities | Pinnacle Foods Finance LLC | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Intercompany accounts receivable | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Other current assets | 6,970 | 2,649 | ||
Total current assets | 6,970 | 2,649 | ||
Plant assets, net | 0 | 0 | ||
Investment in subsidiaries | 3,214,585 | 3,180,932 | ||
Intercompany note receivable | 2,918,747 | 2,907,799 | ||
Tradenames | 0 | 0 | ||
Other assets, net | 16,464 | 8,802 | ||
Deferred tax assets | 241,135 | 233,391 | ||
Goodwill | 0 | 0 | ||
Total assets | 6,397,901 | 6,333,573 | ||
Current liabilities: | ||||
Short-term borrowings | 0 | 0 | ||
Current portion of long-term obligations | 40,000 | 22,620 | ||
Accounts payable | 0 | 0 | ||
Intercompany accounts payable | 1,323,136 | 1,078,535 | ||
Accrued trade marketing expense | 0 | 0 | ||
Accrued liabilities | 15,934 | 19,913 | ||
Dividends payable | 0 | 0 | ||
Total current liabilities | 1,379,070 | 1,121,068 | ||
Long-term debt | 2,675,171 | 2,894,962 | ||
Intercompany note payable | 0 | 0 | ||
Pension and other postretirement benefits | 0 | 0 | ||
Other long-term liabilities | 89 | 98 | ||
Deferred tax liabilities | 0 | 0 | ||
Total liabilities | 4,054,330 | 4,016,128 | ||
Commitments and contingencies | ||||
Shareholders' equity: | ||||
Pinnacle common stock | 0 | 0 | ||
Additional paid-in-capital | 1,454,373 | 1,454,253 | ||
Retained earnings | 916,673 | 893,441 | ||
Accumulated other comprehensive (loss)/gain | (27,475) | (30,249) | ||
Capital stock in treasury, at cost | 0 | 0 | ||
Total Pinnacle Foods Inc. and subsidiaries shareholders' equity | 2,343,571 | 2,317,445 | ||
Non-controlling interest | 0 | 0 | ||
Total Equity | 2,343,571 | 2,317,445 | ||
Total liabilities and equity | 6,397,901 | 6,333,573 | ||
Reportable Legal Entities | Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 76,226 | 241,772 | 134,320 | 341,238 |
Accounts receivable, net | 289,752 | 272,401 | ||
Intercompany accounts receivable | 1,235,500 | 1,001,329 | ||
Inventories, net | 458,300 | 469,813 | ||
Other current assets | 9,855 | 8,124 | ||
Total current assets | 2,069,633 | 1,993,439 | ||
Plant assets, net | 710,255 | 707,670 | ||
Investment in subsidiaries | 42,684 | 43,056 | ||
Intercompany note receivable | 45,308 | 45,226 | ||
Tradenames | 2,458,681 | 2,458,681 | ||
Other assets, net | 142,971 | 145,489 | ||
Deferred tax assets | 0 | 0 | ||
Goodwill | 2,115,731 | 2,115,731 | ||
Total assets | 7,585,263 | 7,509,292 | ||
Current liabilities: | ||||
Short-term borrowings | 1,566 | 2,739 | ||
Current portion of long-term obligations | 13,329 | 11,311 | ||
Accounts payable | 317,015 | 315,142 | ||
Intercompany accounts payable | 0 | 0 | ||
Accrued trade marketing expense | 37,433 | 36,484 | ||
Accrued liabilities | 108,118 | 95,010 | ||
Dividends payable | 0 | 0 | ||
Total current liabilities | 477,461 | 460,686 | ||
Long-term debt | 28,517 | 30,594 | ||
Intercompany note payable | 2,908,285 | 2,896,811 | ||
Pension and other postretirement benefits | 52,142 | 53,251 | ||
Other long-term liabilities | 32,915 | 32,971 | ||
Deferred tax liabilities | 871,358 | 854,047 | ||
Total liabilities | 4,370,678 | 4,328,360 | ||
Commitments and contingencies | ||||
Shareholders' equity: | ||||
Pinnacle common stock | 0 | 0 | ||
Additional paid-in-capital | 1,376,295 | 1,376,175 | ||
Retained earnings | 1,869,511 | 1,834,555 | ||
Accumulated other comprehensive (loss)/gain | (31,221) | (29,798) | ||
Capital stock in treasury, at cost | 0 | 0 | ||
Total Pinnacle Foods Inc. and subsidiaries shareholders' equity | 3,214,585 | 3,180,932 | ||
Non-controlling interest | 0 | 0 | ||
Total Equity | 3,214,585 | 3,180,932 | ||
Total liabilities and equity | 7,585,263 | 7,509,292 | ||
Reportable Legal Entities | Nonguarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 1,458 | 8,056 | 7,134 | 11,838 |
Accounts receivable, net | 11,466 | 9,221 | ||
Intercompany accounts receivable | 1,442 | 0 | ||
Inventories, net | 19,042 | 19,993 | ||
Other current assets | 664 | 288 | ||
Total current assets | 34,072 | 37,558 | ||
Plant assets, net | 30,010 | 32,043 | ||
Investment in subsidiaries | 0 | 0 | ||
Intercompany note receivable | 9,800 | 9,800 | ||
Tradenames | 4,574 | 4,693 | ||
Other assets, net | 9,963 | 10,608 | ||
Deferred tax assets | 599 | 0 | ||
Goodwill | 60,660 | 62,230 | ||
Total assets | 149,678 | 156,932 | ||
Current liabilities: | ||||
Short-term borrowings | 0 | 0 | ||
Current portion of long-term obligations | 2 | 3 | ||
Accounts payable | 5,828 | 7,920 | ||
Intercompany accounts payable | 21,408 | 25,129 | ||
Accrued trade marketing expense | 3,627 | 2,491 | ||
Accrued liabilities | 5,210 | 7,030 | ||
Dividends payable | 0 | 0 | ||
Total current liabilities | 36,075 | 42,573 | ||
Long-term debt | 45 | 38 | ||
Intercompany note payable | 65,570 | 66,014 | ||
Pension and other postretirement benefits | 0 | 0 | ||
Other long-term liabilities | 881 | 968 | ||
Deferred tax liabilities | 3,317 | 3,177 | ||
Total liabilities | 105,888 | 112,770 | ||
Commitments and contingencies | ||||
Shareholders' equity: | ||||
Pinnacle common stock | 0 | 0 | ||
Additional paid-in-capital | 32,772 | 32,771 | ||
Retained earnings | 12,001 | 10,756 | ||
Accumulated other comprehensive (loss)/gain | (2,089) | (471) | ||
Capital stock in treasury, at cost | 0 | 0 | ||
Total Pinnacle Foods Inc. and subsidiaries shareholders' equity | 42,684 | 43,056 | ||
Non-controlling interest | 1,106 | 1,106 | ||
Total Equity | 43,790 | 44,162 | ||
Total liabilities and equity | 149,678 | 156,932 | ||
Eliminations and Reclassifications | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts receivable, net | 0 | 0 | ||
Intercompany accounts receivable | (1,344,544) | (1,103,664) | ||
Inventories, net | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | (1,344,544) | (1,103,664) | ||
Plant assets, net | 0 | 0 | ||
Investment in subsidiaries | (5,600,840) | (5,541,433) | ||
Intercompany note receivable | (2,973,855) | (2,962,825) | ||
Tradenames | 0 | 0 | ||
Other assets, net | 0 | 0 | ||
Deferred tax assets | (241,734) | (233,391) | ||
Goodwill | 0 | 0 | ||
Total assets | (10,160,973) | (9,841,313) | ||
Current liabilities: | ||||
Short-term borrowings | 0 | 0 | ||
Current portion of long-term obligations | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Intercompany accounts payable | (1,344,544) | (1,103,664) | ||
Accrued trade marketing expense | 0 | 0 | ||
Accrued liabilities | 0 | 0 | ||
Dividends payable | 0 | 0 | ||
Total current liabilities | (1,344,544) | (1,103,664) | ||
Long-term debt | 0 | 0 | ||
Intercompany note payable | (2,973,855) | (2,962,825) | ||
Pension and other postretirement benefits | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Deferred tax liabilities | (241,734) | (233,391) | ||
Total liabilities | (4,560,133) | (4,299,880) | ||
Commitments and contingencies | ||||
Shareholders' equity: | ||||
Pinnacle common stock | 0 | 0 | ||
Additional paid-in-capital | (2,863,440) | (2,863,199) | ||
Retained earnings | (2,798,185) | (2,738,752) | ||
Accumulated other comprehensive (loss)/gain | 60,785 | 60,518 | ||
Capital stock in treasury, at cost | 0 | 0 | ||
Total Pinnacle Foods Inc. and subsidiaries shareholders' equity | (5,600,840) | (5,541,433) | ||
Non-controlling interest | 0 | 0 | ||
Total Equity | (5,600,840) | (5,541,433) | ||
Total liabilities and equity | $ (10,160,973) | $ (9,841,313) |
Guarantor and Nonguarantor St86
Guarantor and Nonguarantor Statements - Condensed Consolidating Statements of Operations and Comprehensive Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net sales | $ 778,832 | $ 766,074 |
Cost of products sold | 572,402 | 555,501 |
Gross profit | 206,430 | 210,573 |
Operating expenses | ||
Marketing and selling expenses | 49,227 | 55,594 |
Administrative expenses | 34,674 | 36,011 |
Research and development expenses | 4,764 | 4,021 |
Intercompany royalties | 0 | 0 |
Intercompany management fees | 0 | 0 |
Intercompany technical service fees | 0 | 0 |
Other (income) expense, net | 2,865 | 4,230 |
Equity in (earnings) loss of investees | 0 | 0 |
Total operating (income) expenses | 91,530 | 99,856 |
Operating income | 114,900 | 110,717 |
Non-operating income | 801 | 491 |
Earnings before interest and taxes | 115,701 | 111,208 |
Intercompany interest (income) expense | 0 | 0 |
Interest expense | 41,894 | 80,731 |
Interest income | 212 | 15 |
Earnings before income taxes | 74,019 | 30,492 |
(Benefit) provision for income taxes | 17,105 | 7,343 |
Net earnings | 56,914 | 23,149 |
Less: Net earnings attributable to non-controlling interest | 0 | 223 |
Net earnings attributable to Pinnacle Foods, Inc. and subsidiaries common shareholders | 56,914 | 22,926 |
Total comprehensive earnings (loss) | 65,018 | 38,256 |
Less: Comprehensive (loss) attributable to non-controlling interest | 0 | 223 |
Comprehensive earnings attributable to Pinnacle Foods Inc. and Subsidiaries | 65,018 | 38,033 |
Reportable Legal Entities | Pinnacle Foods Inc. | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net sales | 0 | 0 |
Cost of products sold | 0 | 0 |
Gross profit | 0 | 0 |
Operating expenses | ||
Marketing and selling expenses | 0 | 0 |
Administrative expenses | 0 | 0 |
Research and development expenses | 0 | 0 |
Intercompany royalties | 0 | 0 |
Intercompany management fees | 0 | |
Intercompany technical service fees | 0 | 0 |
Other (income) expense, net | 0 | |
Equity in (earnings) loss of investees | (56,914) | (22,926) |
Total operating (income) expenses | (56,914) | (22,926) |
Operating income | 56,914 | 22,926 |
Non-operating income | 0 | 0 |
Earnings before interest and taxes | 56,914 | 22,926 |
Intercompany interest (income) expense | 0 | 0 |
Interest expense | 0 | 0 |
Interest income | 0 | 0 |
Earnings before income taxes | 56,914 | 22,926 |
(Benefit) provision for income taxes | 0 | 0 |
Net earnings | 56,914 | 22,926 |
Less: Net earnings attributable to non-controlling interest | 0 | 0 |
Net earnings attributable to Pinnacle Foods, Inc. and subsidiaries common shareholders | 56,914 | 22,926 |
Total comprehensive earnings (loss) | 65,018 | 38,033 |
Less: Comprehensive (loss) attributable to non-controlling interest | 0 | 0 |
Comprehensive earnings attributable to Pinnacle Foods Inc. and Subsidiaries | 65,018 | 38,033 |
Reportable Legal Entities | Pinnacle Foods Finance LLC | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net sales | 0 | 0 |
Cost of products sold | 0 | |
Gross profit | 0 | 0 |
Operating expenses | ||
Marketing and selling expenses | 0 | 0 |
Administrative expenses | 0 | 0 |
Research and development expenses | 0 | 0 |
Intercompany royalties | 0 | 0 |
Intercompany management fees | 0 | |
Intercompany technical service fees | 0 | 0 |
Other (income) expense, net | 525 | (233) |
Equity in (earnings) loss of investees | (73,967) | (58,177) |
Total operating (income) expenses | (73,442) | (58,410) |
Operating income | 73,442 | 58,410 |
Non-operating income | 0 | 0 |
Earnings before interest and taxes | 73,442 | 58,410 |
Intercompany interest (income) expense | (18,752) | (22,305) |
Interest expense | 41,135 | 80,170 |
Interest income | 0 | 0 |
Earnings before income taxes | 51,059 | 545 |
(Benefit) provision for income taxes | (5,855) | (22,381) |
Net earnings | 56,914 | 22,926 |
Less: Net earnings attributable to non-controlling interest | 0 | 0 |
Net earnings attributable to Pinnacle Foods, Inc. and subsidiaries common shareholders | 56,914 | 22,926 |
Total comprehensive earnings (loss) | 65,018 | 38,033 |
Less: Comprehensive (loss) attributable to non-controlling interest | 0 | 0 |
Comprehensive earnings attributable to Pinnacle Foods Inc. and Subsidiaries | 65,018 | 38,033 |
Reportable Legal Entities | Guarantor Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net sales | 764,192 | 754,587 |
Cost of products sold | 562,753 | 546,212 |
Gross profit | 201,439 | 208,375 |
Operating expenses | ||
Marketing and selling expenses | 48,567 | 54,703 |
Administrative expenses | 33,039 | 34,385 |
Research and development expenses | 4,581 | 3,837 |
Intercompany royalties | (167) | (188) |
Intercompany management fees | 0 | |
Intercompany technical service fees | 0 | 0 |
Other (income) expense, net | 2,156 | 4,020 |
Equity in (earnings) loss of investees | (1,483) | 1,352 |
Total operating (income) expenses | 86,693 | 98,109 |
Operating income | 114,746 | 110,266 |
Non-operating income | 801 | 491 |
Earnings before interest and taxes | 115,547 | 110,757 |
Intercompany interest (income) expense | 18,533 | 22,087 |
Interest expense | 742 | 551 |
Interest income | 200 | 10 |
Earnings before income taxes | 96,472 | 88,129 |
(Benefit) provision for income taxes | 22,505 | 29,952 |
Net earnings | 73,967 | 58,177 |
Less: Net earnings attributable to non-controlling interest | 0 | 0 |
Net earnings attributable to Pinnacle Foods, Inc. and subsidiaries common shareholders | 73,967 | 58,177 |
Total comprehensive earnings (loss) | 72,543 | 59,681 |
Less: Comprehensive (loss) attributable to non-controlling interest | 0 | 0 |
Comprehensive earnings attributable to Pinnacle Foods Inc. and Subsidiaries | 72,543 | 59,681 |
Reportable Legal Entities | Nonguarantor Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net sales | 41,374 | 36,694 |
Cost of products sold | 36,265 | 33,856 |
Gross profit | 5,109 | 2,838 |
Operating expenses | ||
Marketing and selling expenses | 660 | 891 |
Administrative expenses | 1,635 | 1,626 |
Research and development expenses | 183 | 184 |
Intercompany royalties | 167 | 188 |
Intercompany management fees | 118 | 391 |
Intercompany technical service fees | 0 | 249 |
Other (income) expense, net | 184 | 443 |
Equity in (earnings) loss of investees | 0 | 0 |
Total operating (income) expenses | 2,947 | 3,972 |
Operating income | 2,162 | (1,134) |
Non-operating income | 0 | 0 |
Earnings before interest and taxes | 2,162 | (1,134) |
Intercompany interest (income) expense | 219 | 218 |
Interest expense | 17 | 10 |
Interest income | 12 | 5 |
Earnings before income taxes | 1,938 | (1,357) |
(Benefit) provision for income taxes | 455 | (228) |
Net earnings | 1,483 | (1,129) |
Less: Net earnings attributable to non-controlling interest | 0 | 223 |
Net earnings attributable to Pinnacle Foods, Inc. and subsidiaries common shareholders | 1,483 | (1,352) |
Total comprehensive earnings (loss) | (136) | 246 |
Less: Comprehensive (loss) attributable to non-controlling interest | 0 | 223 |
Comprehensive earnings attributable to Pinnacle Foods Inc. and Subsidiaries | (136) | 23 |
Eliminations and Reclassifications | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net sales | (26,734) | (25,207) |
Cost of products sold | (26,616) | (24,567) |
Gross profit | (118) | (640) |
Operating expenses | ||
Marketing and selling expenses | 0 | 0 |
Administrative expenses | 0 | 0 |
Research and development expenses | 0 | 0 |
Intercompany royalties | 0 | |
Intercompany management fees | (118) | (391) |
Intercompany technical service fees | 0 | (249) |
Other (income) expense, net | 0 | 0 |
Equity in (earnings) loss of investees | 132,364 | 79,751 |
Total operating (income) expenses | 132,246 | 79,111 |
Operating income | (132,364) | (79,751) |
Non-operating income | 0 | 0 |
Earnings before interest and taxes | (132,364) | (79,751) |
Intercompany interest (income) expense | 0 | 0 |
Interest expense | 0 | 0 |
Interest income | 0 | 0 |
Earnings before income taxes | (132,364) | (79,751) |
(Benefit) provision for income taxes | 0 | 0 |
Net earnings | (132,364) | (79,751) |
Less: Net earnings attributable to non-controlling interest | 0 | 0 |
Net earnings attributable to Pinnacle Foods, Inc. and subsidiaries common shareholders | (132,364) | (79,751) |
Total comprehensive earnings (loss) | (137,425) | (97,737) |
Less: Comprehensive (loss) attributable to non-controlling interest | 0 | 0 |
Comprehensive earnings attributable to Pinnacle Foods Inc. and Subsidiaries | $ (137,425) | $ (97,737) |
Guarantor and Nonguarantor St87
Guarantor and Nonguarantor Statements - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2018 | Mar. 26, 2017 | |
Cash flows from operating activities | ||
Net cash (used in) provided by operating activities | $ 121,578 | $ 62,993 |
Cash flows from investing activities | ||
Intercompany accounts receivable/payable | 0 | 0 |
Investment in subsidiaries | 0 | |
Capital expenditures | (35,876) | (29,243) |
Other investing | 608 | 0 |
Sale of plant assets | 0 | 679 |
Net cash used in investing activities | (35,268) | (28,564) |
Cash flows from financing activities | ||
Net proceeds from issuance of common stock | 762 | 5,894 |
Taxes paid related to net share settlement of equity awards | (99) | (303) |
Dividends paid | (38,595) | (33,602) |
Proceeds from bank term loans | 2,039,380 | 2,262,000 |
Repayments of long-term obligations | (2,250,359) | (2,465,700) |
Proceeds from short-term borrowing | 0 | 1,634 |
Repayments of short-term borrowing | (1,173) | (1,068) |
Intercompany accounts receivable/payable | 0 | 0 |
Return of capital | 0 | 0 |
Repayment of capital lease obligations | (4,036) | (2,224) |
Debt acquisition costs | (4,145) | (12,810) |
Net cash used in financing activities | (258,265) | (246,179) |
Effect of exchange rate changes on cash | (189) | 128 |
Net change in cash and cash equivalents | (172,144) | (211,622) |
Cash and cash equivalents - beginning of period | 249,828 | 353,076 |
Cash and cash equivalents - end of period | 77,684 | 141,454 |
Reportable Legal Entities | Pinnacle Foods Inc. | ||
Cash flows from operating activities | ||
Net cash (used in) provided by operating activities | 0 | |
Cash flows from investing activities | ||
Intercompany accounts receivable/payable | 0 | 0 |
Investment in subsidiaries | 37,932 | 28,011 |
Capital expenditures | 0 | 0 |
Other investing | 0 | |
Sale of plant assets | 0 | |
Net cash used in investing activities | 37,932 | 28,011 |
Cash flows from financing activities | ||
Net proceeds from issuance of common stock | 762 | 5,894 |
Taxes paid related to net share settlement of equity awards | (99) | (303) |
Dividends paid | (38,595) | (33,602) |
Proceeds from bank term loans | 0 | 0 |
Repayments of long-term obligations | 0 | 0 |
Proceeds from short-term borrowing | 0 | |
Repayments of short-term borrowing | 0 | 0 |
Intercompany accounts receivable/payable | 0 | 0 |
Return of capital | 0 | 0 |
Repayment of capital lease obligations | 0 | 0 |
Debt acquisition costs | 0 | 0 |
Net cash used in financing activities | (37,932) | (28,011) |
Effect of exchange rate changes on cash | 0 | |
Net change 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 |
Reportable Legal Entities | Pinnacle Foods Finance LLC | ||
Cash flows from operating activities | ||
Net cash (used in) provided by operating activities | (4,890) | (16,463) |
Cash flows from investing activities | ||
Intercompany accounts receivable/payable | 218,077 | 235,763 |
Investment in subsidiaries | 38,890 | 24,271 |
Capital expenditures | 0 | 0 |
Other investing | 0 | |
Sale of plant assets | 0 | |
Net cash used in investing activities | 256,967 | 260,034 |
Cash flows from financing activities | ||
Net proceeds from issuance of common stock | 0 | 0 |
Taxes paid related to net share settlement of equity awards | 0 | 0 |
Dividends paid | 0 | 0 |
Proceeds from bank term loans | 2,039,380 | 2,262,000 |
Repayments of long-term obligations | (2,249,380) | (2,464,750) |
Proceeds from short-term borrowing | 0 | |
Repayments of short-term borrowing | 0 | 0 |
Intercompany accounts receivable/payable | 0 | 0 |
Return of capital | (37,932) | (28,011) |
Repayment of capital lease obligations | 0 | 0 |
Debt acquisition costs | (4,145) | (12,810) |
Net cash used in financing activities | (252,077) | (243,571) |
Effect of exchange rate changes on cash | 0 | |
Net change 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 |
Reportable Legal Entities | Guarantor Subsidiaries | ||
Cash flows from operating activities | ||
Net cash (used in) provided by operating activities | 124,927 | 76,870 |
Cash flows from investing activities | ||
Intercompany accounts receivable/payable | 8,451 | 7,580 |
Investment in subsidiaries | 0 | |
Capital expenditures | (35,800) | (28,744) |
Other investing | 0 | |
Sale of plant assets | 0 | |
Net cash used in investing activities | (27,349) | (21,164) |
Cash flows from financing activities | ||
Net proceeds from issuance of common stock | 0 | 0 |
Taxes paid related to net share settlement of equity awards | 0 | 0 |
Dividends paid | 0 | 0 |
Proceeds from bank term loans | 0 | 0 |
Repayments of long-term obligations | (979) | (950) |
Proceeds from short-term borrowing | 1,634 | |
Repayments of short-term borrowing | (1,173) | (1,068) |
Intercompany accounts receivable/payable | (218,077) | (235,763) |
Return of capital | (38,890) | (24,271) |
Repayment of capital lease obligations | (4,005) | (2,206) |
Debt acquisition costs | 0 | 0 |
Net cash used in financing activities | (263,124) | (262,624) |
Effect of exchange rate changes on cash | 0 | |
Net change in cash and cash equivalents | (165,546) | (206,918) |
Cash and cash equivalents - beginning of period | 241,772 | 341,238 |
Cash and cash equivalents - end of period | 76,226 | 134,320 |
Reportable Legal Entities | Nonguarantor Subsidiaries | ||
Cash flows from operating activities | ||
Net cash (used in) provided by operating activities | 1,541 | 2,586 |
Cash flows from investing activities | ||
Intercompany accounts receivable/payable | 0 | 0 |
Investment in subsidiaries | 0 | |
Capital expenditures | (76) | (499) |
Other investing | 608 | |
Sale of plant assets | 679 | |
Net cash used in investing activities | 532 | 180 |
Cash flows from financing activities | ||
Net proceeds from issuance of common stock | 0 | 0 |
Taxes paid related to net share settlement of equity awards | 0 | 0 |
Dividends paid | 0 | 0 |
Proceeds from bank term loans | 0 | 0 |
Repayments of long-term obligations | 0 | 0 |
Proceeds from short-term borrowing | 0 | |
Repayments of short-term borrowing | 0 | 0 |
Intercompany accounts receivable/payable | (8,451) | (7,580) |
Return of capital | 0 | 0 |
Repayment of capital lease obligations | (31) | (18) |
Debt acquisition costs | 0 | 0 |
Net cash used in financing activities | (8,482) | (7,598) |
Effect of exchange rate changes on cash | (189) | 128 |
Net change in cash and cash equivalents | (6,598) | (4,704) |
Cash and cash equivalents - beginning of period | 8,056 | 11,838 |
Cash and cash equivalents - end of period | 1,458 | 7,134 |
Eliminations and Reclassifications | ||
Cash flows from operating activities | ||
Net cash (used in) provided by operating activities | 0 | 0 |
Cash flows from investing activities | ||
Intercompany accounts receivable/payable | (226,528) | (243,343) |
Investment in subsidiaries | (76,822) | (52,282) |
Capital expenditures | 0 | 0 |
Other investing | 0 | |
Sale of plant assets | 0 | |
Net cash used in investing activities | (303,350) | (295,625) |
Cash flows from financing activities | ||
Net proceeds from issuance of common stock | 0 | 0 |
Taxes paid related to net share settlement of equity awards | 0 | 0 |
Dividends paid | 0 | 0 |
Proceeds from bank term loans | 0 | 0 |
Repayments of long-term obligations | 0 | 0 |
Proceeds from short-term borrowing | 0 | |
Repayments of short-term borrowing | 0 | 0 |
Intercompany accounts receivable/payable | 226,528 | 243,343 |
Return of capital | 76,822 | 52,282 |
Repayment of capital lease obligations | 0 | 0 |
Debt acquisition costs | 0 | 0 |
Net cash used in financing activities | 303,350 | 295,625 |
Effect of exchange rate changes on cash | 0 | |
Net change 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 |