Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 28, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | COKE | |
Entity Registrant Name | COCA COLA BOTTLING CO CONSOLIDATED /DE/ | |
Entity Central Index Key | 317,540 | |
Current Fiscal Year End Date | --12-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 7,141,447 | |
Class B Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,213,018 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | |
Net sales | $ 1,211,661 | $ 1,162,526 | $ 3,510,997 | $ 3,197,519 |
Cost of sales | 791,317 | 752,202 | 2,313,728 | 2,039,996 |
Gross profit | 420,344 | 410,324 | 1,197,269 | 1,157,523 |
Selling, delivery and administrative expenses | 375,940 | 372,852 | 1,152,183 | 1,056,446 |
Income from operations | 44,404 | 37,472 | 45,086 | 101,077 |
Interest expense, net | 12,827 | 10,697 | 37,617 | 30,607 |
Other income (expense), net | 1,696 | 3,884 | (3,612) | (36,595) |
Gain on exchange transactions | 10,170 | 10,170 | ||
Income before income taxes | 43,443 | 30,659 | 14,027 | 33,875 |
Income tax expense | 16,493 | 11,748 | 3,387 | 11,800 |
Net income | 26,950 | 18,911 | 10,640 | 22,075 |
Less: Net income attributable to noncontrolling interest | 1,786 | 1,595 | 3,594 | 3,462 |
Net income attributable to Coca-Cola Bottling Co. Consolidated | $ 25,164 | $ 17,316 | $ 7,046 | $ 18,613 |
Basic net income per share based on net income attributable to Coca-Cola Bottling Co. Consolidated: | ||||
Common Stock | $ 2.69 | $ 1.86 | $ 0.75 | $ 2 |
Weighted average number of Common Stock shares outstanding | 7,141 | 7,141 | 7,141 | 7,141 |
Diluted net income per share based on net income attributable to Coca-Cola Bottling Co. Consolidated: | ||||
Common Stock | $ 2.69 | $ 1.85 | $ 0.75 | $ 1.99 |
Weighted average number of Common Stock shares outstanding – assuming dilution | 9,405 | 9,374 | 9,400 | 9,369 |
Cash dividends per share: | ||||
Cash dividend per share | $ 0.25 | $ 0.25 | $ 0.75 | $ 0.75 |
Class B Common Stock [Member] | ||||
Basic net income per share based on net income attributable to Coca-Cola Bottling Co. Consolidated: | ||||
Common Stock | $ 2.69 | $ 1.86 | $ 0.75 | $ 2 |
Weighted average number of Common Stock shares outstanding | 2,213 | 2,193 | 2,208 | 2,188 |
Diluted net income per share based on net income attributable to Coca-Cola Bottling Co. Consolidated: | ||||
Common Stock | $ 2.68 | $ 1.84 | $ 0.74 | $ 1.97 |
Weighted average number of Common Stock shares outstanding – assuming dilution | 2,264 | 2,233 | 2,259 | 2,228 |
Cash dividends per share: | ||||
Cash dividend per share | $ 0.25 | $ 0.25 | $ 0.75 | $ 0.75 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 26,950 | $ 18,911 | $ 10,640 | $ 22,075 |
Defined benefit plans reclassification including pension costs: | ||||
Actuarial gains | 703 | 496 | 2,109 | 1,487 |
Prior service benefits | 4 | 4 | 13 | 13 |
Postretirement benefits reclassification included in benefits costs: | ||||
Actuarial gains | 376 | 398 | 1,128 | 1,194 |
Prior service costs | (348) | (458) | (1,044) | (1,374) |
Foreign currency translation adjustment | (1) | 7 | (7) | 23 |
Other comprehensive income, net of tax | 734 | 447 | 2,199 | 1,343 |
Comprehensive income | 27,684 | 19,358 | 12,839 | 23,418 |
Less: Comprehensive income attributable to noncontrolling interest | 1,786 | 1,595 | 3,594 | 3,462 |
Comprehensive income attributable to Coca-Cola Bottling Co. Consolidated | $ 25,898 | $ 17,763 | $ 9,245 | $ 19,956 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 9,337 | $ 16,902 |
Accounts receivable, trade | 432,384 | 396,022 |
Allowance for doubtful accounts | (9,069) | (7,606) |
Accounts receivable from The Coca-Cola Company | 62,541 | 65,996 |
Accounts receivable, other | 28,632 | 38,960 |
Inventories | 229,892 | 183,618 |
Prepaid expenses and other current assets | 91,514 | 100,646 |
Total current assets | 845,231 | 794,538 |
Property, plant and equipment, net | 998,117 | 1,031,388 |
Leased property under capital leases, net | 25,208 | 29,837 |
Other assets | 119,193 | 116,209 |
Goodwill | 165,903 | 169,316 |
Total assets | 3,072,424 | 3,072,960 |
Current Liabilities: | ||
Current portion of obligations under capital leases | 8,438 | 8,221 |
Accounts payable, trade | 186,706 | 197,049 |
Accounts payable to The Coca-Cola Company | 142,849 | 171,042 |
Other accrued liabilities | 153,609 | 185,530 |
Accrued compensation | 57,651 | 72,484 |
Accrued interest payable | 9,363 | 5,126 |
Total current liabilities | 558,616 | 639,452 |
Deferred income taxes | 123,248 | 112,364 |
Pension and postretirement benefit obligations | 98,738 | 118,392 |
Other liabilities | 600,310 | 620,579 |
Obligations under capital leases | 28,840 | 35,248 |
Long-term debt | 1,194,109 | 1,088,018 |
Total liabilities | 2,603,861 | 2,614,053 |
Commitments and Contingencies | ||
Equity: | ||
Capital in excess of par value | 124,228 | 120,417 |
Retained earnings | 388,750 | 388,718 |
Accumulated other comprehensive loss | (92,003) | (94,202) |
Treasury stock, at cost: | ||
Total equity of Coca-Cola Bottling Co. Consolidated | 372,764 | 366,702 |
Noncontrolling interest | 95,799 | 92,205 |
Total equity | 468,563 | 458,907 |
Total liabilities and equity | 3,072,424 | 3,072,960 |
Common Stock [Member] | ||
Equity: | ||
Common Stock | 10,204 | 10,204 |
Treasury stock, at cost: | ||
Treasury stock | (60,845) | (60,845) |
Class B Common Stock [Member] | ||
Equity: | ||
Common Stock | 2,839 | 2,819 |
Treasury stock, at cost: | ||
Treasury stock | (409) | (409) |
Distribution Agreements [Member] | ||
Current Assets: | ||
Other identifiable intangible assets, net | 901,831 | 913,352 |
Customer Lists and Other Identifiable Intangible Assets [Member] | ||
Current Assets: | ||
Other identifiable intangible assets, net | $ 16,941 | $ 18,320 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Common Stock [Member] | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 10,203,821 | 10,203,821 |
Treasury stock, shares | 3,062,374 | 3,062,374 |
Class B Common Stock [Member] | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 2,841,132 | 2,820,836 |
Treasury stock, shares | 628,114 | 628,114 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands | Total | Class B Common Stock [Member] | Common Stock [Member] | Common Stock [Member]Class B Common Stock [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Retained Earnings [Member]Class B Common Stock [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock - Common Stock [Member] | Treasury Stock - Common Stock [Member]Class B Common Stock [Member] | Total Equity of Coca-Cola Bottling Co. Consolidated [Member] | Total Equity of Coca-Cola Bottling Co. Consolidated [Member]Class B Common Stock [Member] | Non-controlling Interest [Member] |
Beginning Balance at Jan. 01, 2017 | $ 363,024 | $ 10,204 | $ 2,798 | $ 116,769 | $ 301,511 | $ (92,897) | $ (60,845) | $ (409) | $ 277,131 | $ 85,893 | |||
Net income | 22,075 | 18,613 | 18,613 | 3,462 | |||||||||
Other comprehensive income, net of tax | 1,343 | 1,343 | 1,343 | ||||||||||
Cash dividends paid Common ($0.75 per share) | (5,356) | $ (1,639) | (5,356) | $ (1,639) | (5,356) | $ (1,639) | |||||||
Issuance of shares of Class B Common Stock | 3,669 | 21 | 3,648 | 3,669 | |||||||||
Ending Balance at Oct. 01, 2017 | 383,116 | 10,204 | 2,819 | 120,417 | 313,129 | (91,554) | (60,845) | (409) | 293,761 | 89,355 | |||
Beginning Balance at Jul. 02, 2017 | (92,001) | ||||||||||||
Net income | 18,911 | ||||||||||||
Other comprehensive income, net of tax | 447 | ||||||||||||
Cash dividends paid Common ($0.75 per share) | (1,785) | (548) | |||||||||||
Ending Balance at Oct. 01, 2017 | 383,116 | 10,204 | 2,819 | 120,417 | 313,129 | (91,554) | (60,845) | (409) | 293,761 | 89,355 | |||
Beginning Balance at Dec. 31, 2017 | 458,907 | 10,204 | 2,819 | 120,417 | 388,718 | (94,202) | (60,845) | (409) | 366,702 | 92,205 | |||
Net income | 10,640 | 7,046 | 7,046 | 3,594 | |||||||||
Other comprehensive income, net of tax | 2,199 | 2,199 | 2,199 | ||||||||||
Cash dividends paid Common ($0.75 per share) | (5,357) | (1,657) | (5,357) | $ (1,657) | (5,357) | $ (1,657) | |||||||
Issuance of shares of Class B Common Stock | 3,831 | 20 | 3,811 | 3,831 | |||||||||
Ending Balance at Sep. 30, 2018 | 468,563 | 10,204 | 2,839 | 124,228 | 388,750 | (92,003) | (60,845) | (409) | 372,764 | 95,799 | |||
Beginning Balance at Jul. 01, 2018 | (92,737) | ||||||||||||
Net income | 26,950 | ||||||||||||
Other comprehensive income, net of tax | 734 | ||||||||||||
Cash dividends paid Common ($0.75 per share) | (1,787) | $ (556) | |||||||||||
Ending Balance at Sep. 30, 2018 | $ 468,563 | $ 10,204 | $ 2,839 | $ 124,228 | $ 388,750 | $ (92,003) | $ (60,845) | $ (409) | $ 372,764 | $ 95,799 |
Consolidated Condensed Statem_4
Consolidated Condensed Statements of Changes in Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | |
Cash dividend per share | $ 0.25 | $ 0.25 | $ 0.75 | $ 0.75 |
Class B Common Stock [Member] | ||||
Cash dividend per share | $ 0.25 | $ 0.25 | $ 0.75 | $ 0.75 |
Class B common stock shares issued | 20,296 | 21,020 |
Consolidated Condensed Statem_5
Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Oct. 01, 2017 | |
Cash Flows from Operating Activities: | ||
Net income | $ 10,640 | $ 22,075 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation expense | 123,542 | 108,697 |
Amortization of intangible assets and deferred proceeds, net | 16,954 | 11,596 |
Deferred income taxes | 9,903 | (24,741) |
Gain on exchange transactions | (10,170) | |
Loss on sale of property, plant and equipment | 6,123 | 3,420 |
Impairment of property, plant and equipment | 299 | |
Fair value adjustment of acquisition related contingent consideration | 1,584 | 23,140 |
Stock compensation expense | 4,494 | 6,473 |
Amortization of debt costs | 1,103 | 806 |
Proceeds from Territory Conversion Fee | 87,066 | |
Change in current assets less current liabilities (exclusive of acquisitions) | (120,421) | (19,036) |
Change in other noncurrent assets (exclusive of acquisitions) | 724 | (13,391) |
Change in other noncurrent liabilities (exclusive of acquisitions) | (18,762) | (3,746) |
Other | 17 | 66 |
Total adjustments | 15,390 | 180,350 |
Net cash provided by operating activities | 26,030 | 202,425 |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment (exclusive of acquisitions) | (113,104) | (114,953) |
Investment in CONA Services LLC | (2,098) | (1,976) |
Acquisition of distribution territories and regional manufacturing facilities, net of cash acquired and purchase price settlements | 1,811 | (227,769) |
Proceeds from cold drink equipment | 3,789 | 8,400 |
Proceeds from the sale of property, plant and equipment | 3,555 | 493 |
Glacéau distribution agreement consideration | (15,598) | |
Prepayment of funds for October 2017 Expansion Transactions | (56,498) | |
Net cash used in investing activities | (106,047) | (407,901) |
Cash Flows from Financing Activities: | ||
Payments on Revolving Credit Facility | (322,000) | (238,000) |
Borrowings under Revolving Credit Facility | 285,000 | 333,000 |
Proceeds from issuance of Senior Notes | 150,000 | 125,000 |
Payment of acquisition related contingent consideration | (18,312) | (11,650) |
Payment on Term Loan Facility | (7,500) | |
Cash dividends paid | (7,014) | (6,995) |
Principal payments on capital lease obligations | (6,191) | (5,594) |
Debt issuance fees | (1,531) | (213) |
Net cash provided by financing activities | 72,452 | 195,548 |
Net decrease in cash | (7,565) | (9,928) |
Cash at beginning of period | 16,902 | 21,850 |
Cash at end of period | 9,337 | 11,922 |
Significant noncash investing and financing activities: | ||
Additions to property, plant and equipment accrued and recorded in accounts payable, trade | 4,081 | 13,724 |
Class B Common Stock [Member] | ||
Significant noncash investing and financing activities: | ||
Issuance of Class B Common Stock in connection with stock award | $ 3,831 | $ 3,669 |
Significant Accounting Policies
Significant Accounting Policies and New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and New Accounting Pronouncements | 1. Significant Accounting Policies and New Accounting Pronouncements The consolidated condensed financial statements include the accounts of Coca‑Cola Bottling Co. Consolidated and its majority-owned subsidiaries (the “Company”). All significant intercompany accounts and transactions have been eliminated. The consolidated condensed financial statements reflect all adjustments, including normal, recurring accruals, which, in the opinion of management, are necessary for a fair statement of the results for the interim periods presented: • The financial position as of September 30, 2018 and December 31, 2017. • The results of operations and comprehensive income for the 13 week periods ended September 30, 2018 (“third quarter” of fiscal 2018 (“2018”)) and October 1, 2017 (“third quarter” of fiscal 2017 (“2017”)), and the 39 week periods ended September 30, 2018 (“first three quarters” of 2018) and October 1, 2017 (“first three quarters” of 2017). • The changes in equity and cash flows for the first three quarters of 2018 and the first three quarters of 2017. The consolidated condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial reporting and the instructions to Form 10-Q and Article 10 of Regulation S-X. The accounting policies followed in the presentation of interim financial results are consistent with those followed on an annual basis. These policies are presented in Note 1 to the consolidated financial statements included in the Company’s Annual Report on Form 10‑K for 2017 filed with the Securities and Exchange Commission (the “SEC”). The preparation of consolidated condensed financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant Accounting Policies In the ordinary course of business, the Company has made a number of estimates and assumptions relating to the reporting of results of operations and financial position in the preparation of its consolidated condensed financial statements in conformity with GAAP. Actual results could differ significantly from those estimates under different assumptions and conditions. The Company included in its Annual Report on Form 10‑K for 2017 under the caption “Discussion of Critical Accounting Policies, Estimates and New Accounting Pronouncements” in Part II, “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations,” a discussion of the Company’s most critical accounting policies, which are those the Company believes to be the most important to the portrayal of its financial condition and results of operations and require management’s most difficult, subjective and complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Any changes in critical accounting policies and estimates are discussed with the Audit Committee of the Board of Directors of the Company during the quarter in which a change is contemplated and prior to making such change. Recently Adopted Pronouncements In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2014-09 “Revenue from Contracts with Customers,” (the “revenue recognition standard”). Subsequent to the issuance of ASU 2014‑09, the FASB issued several additional accounting standards for revenue recognition to update the effective date of the revenue recognition guidance and to provide additional clarification on the updated standard. The new guidance is effective for annual and interim periods beginning after December 15, 2017. The Company adopted the revenue recognition standard in the first quarter of 2018, as discussed in Note 2. In January 2016, the FASB issued ASU 2016-01 “Recognition and Measurement of Financial Assets and Financial Liabilities,” which revises the classification and measurement of investments in equity securities and the presentation of certain fair value changes in financial liabilities measured at fair value. The new guidance is effective for annual and interim periods beginning after December 31, 2017. The Company adopted this guidance in the first quarter of 2018 and there was no material impact to the Company’s consolidated condensed financial statements. In January 2017, the FASB issued ASU 2017-01 “Clarifying the Definition of a Business,” which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The new guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. . In January 2017, the FASB issued ASU 2017-04 “Simplifying the Test for Goodwill Impairment,” which The new guidance is effective for the annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. In March 2017, the FASB issued ASU 2017‑07 “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which requires that the service cost component of the Company’s net periodic pension cost and net periodic postretirement benefit cost be included in the same line item as other compensation costs arising from services rendered by employees, with the non-service cost components of net periodic benefit cost being classified outside of a subtotal of income from operations. Of the components of net periodic benefit cost, only the service cost component is eligible for asset capitalization. The new guidance is effective for annual periods beginning after December 31, 2017, including interim periods within those annual periods. The Company using the practical expedient which allows entities to use information previously disclosed in their pension and other postretirement benefit plans note as the estimation basis to apply the retrospective presentation requirements in ASU 2017-07. With the adoption of this guidance in the first quarter of 2018, the Company recorded the non-service cost component of net periodic benefit cost, which totaled $0.6 million in the third quarter of 2018 and $2.0 million in the first three quarters of 2018, to other income (expense), net in the consolidated condensed statements of operations. The Company reclassified $1.3 million from the third quarter of 2017 and $4.0 million from the first three quarters of 2017 of non-service cost components of net periodic benefit cost and other benefit plan charges from selling, delivery and administrative (“S,D&A”) expenses to other income (expense), net in the consolidated condensed statements of operations. The non-service cost component of net periodic benefit cost is included in the Nonalcoholic Beverages segment. Recently Issued Pronouncements In February 2018, the FASB issued ASU 2018‑02 “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which provides the option to reclassify stranded tax effects resulting from the Tax Cuts and Jobs Act (the “Tax Act”) from accumulated other comprehensive income to retained earnings. The new guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and can be early adopted. The Company is currently evaluating whether it will adopt this guidance. In February 2016, the FASB issued ASU 2016-02 “Leases,” which requires lessees to recognize a right-to-use asset and a lease liability for virtually all leases (other than leases meeting the definition of a short-term lease). The new guidance is effective for fiscal years beginning after December 15, 2018 and interim periods beginning the following fiscal year. The Company anticipates adopting the new accounting standard on December 31, 2018, the first day of fiscal 2019, using the optional transition method, which was approved by the FASB in March 2018 and allows companies the option to use the effective date as the date of initial application on transition and to not adjust comparative period financial information or make the new required disclosures for periods prior to the effective date. The Company has formed a project team, which is in the process of reviewing its existing lease portfolio, including certain service contracts for embedded leases, to determine the size of the Company’s lease portfolio in order to evaluate the impact of this new guidance on the Company’s consolidated condensed financial statements. The Company anticipates the impact of adopting this new guidance will be material to its consolidated condensed balance sheets. The impact on the Company’s consolidated condensed statements of operations is still being evaluated. As the impact of the new guidance is non-cash in nature, the Company does not anticipate the impact of adopting this new guidance will be material to its consolidated condensed statements of cash flows. Additionally, the Company is evaluating the impacts of ASU 2016‑02 beyond accounting, including system, data and process changes required to comply with this standard. The Company anticipates implementing new controls and utilizing a lease accounting software application with the adoption of this new guidance and on a go-forward basis in order to properly approve, track and account for its entire lease portfolio. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 2. The Company adopted the revenue recognition standard, including all relevant amendments and practical expedients, in the first quarter of 2018 using the modified retrospective approach for all contracts not completed at the date of initial adoption, considering materiality and applicability. Upon adoption of this guidance, there was no material impact to the Company’s consolidated condensed financial statements. T he Company’s contracts are derived from customer orders, including customer sales incentives, generated through an order processing and replenishment model. erformance obligations for its contracts as either at a point in time or over time. The Company offers a range of nonalcoholic beverage products and flavors designed to meet the demands of its consumers, including both sparkling and still beverages. Sparkling beverages are carbonated beverages and the Company’s principal sparkling beverage is Coca‑Cola. Still beverages include energy products and noncarbonated beverages such as bottled water, tea, ready to drink coffee, enhanced water, juices and sports drinks. The Company’s products are sold and distributed through various channels, which include selling directly to retail stores and other outlets such as food markets, institutional accounts and vending machine outlets. During the first three quarters of 2018, approximately 66% of the Company’s bottle/can sales volume to retail customers was sold for future consumption, while the remaining bottle/can sales volume to retail customers was sold for immediate consumption. All the Company’s beverage sales were to customers in the United States. The Company typically collects payment from customers within 30 days from the date of sale. The Company’s sales are divided into two main categories: (i) bottle/can sales and (ii) other sales. Bottle/can sales include products packaged primarily in plastic bottles and aluminum cans. Other sales include sales to other Coca‑Cola bottlers, “post-mix” products, transportation and equipment maintenance revenue. Post-mix products are dispensed through equipment that mixes fountain syrups with carbonated or still water, enabling fountain retailers to sell finished products to consumers in cups or glasses. Net sales by category were as follows: Third Quarter First Three Quarters (in thousands) 2018 2017 2018 2017 Bottle/can sales: Sparkling beverages (carbonated) $ 605,614 $ 582,710 $ 1,787,451 $ 1,670,093 Still beverages (noncarbonated, including energy products) 413,282 384,495 1,142,764 1,009,508 Total bottle/can sales 1,018,896 967,205 2,930,215 2,679,601 Other sales: Sales to other Coca-Cola bottlers 92,139 104,619 300,819 274,317 Post-mix and other 100,626 90,702 279,963 243,601 Total other sales 192,765 195,321 580,782 517,918 Total net sales $ 1,211,661 $ 1,162,526 $ 3,510,997 $ 3,197,519 Bottle/can sales represented approximately 83% and 84% in the first three quarters of 2018 and the first three quarters of 2017, respectively. The sparkling beverage category represented approximately 61% and 62% of total bottle/can sales during the first three quarters of 2018 and the first three quarters of 2017, respectively. Bottle/can sales, sales to other Coca‑Cola bottlers and post-mix sales are recognized when control transfers to a customer, which is generally upon delivery and is considered a single point in time (“point in time”). Point in time sales accounted for approximately 97% of the Company’s net sales in both the first three quarters of 2018 and the first three quarters of 2017. Substantially all of the Company’s revenue is recognized at a point in time and is included in the Nonalcoholic Beverages segment. Other sales, which include revenue for service fees related to the repair of cold drink equipment and delivery fees for freight hauling and brokerage services, are recognized over time (“over time”). Revenues related to cold drink equipment repair are recognized as the respective services are completed using a cost-to-cost input method. Repair services are generally completed in less than one day but can extend up to one month. Revenues related to freight hauling and brokerage services are recognized as the delivery occurs using a miles driven output method. Generally, delivery occurs and freight charges are recognized in the same day. Over time sales orders open at the end of a financial period are not considered material to the Company’s consolidated condensed financial statements. The Company participates in various sales programs with The Coca‑Cola Company, other beverage companies and customers to increase the sale of its products. Programs negotiated with customers include arrangements under which allowances can be earned for attaining agreed-upon sales levels. The cost of these various sales incentives are not considered a separate performance obligation and are included as deductions to net sales. Revenues do not include sales or other taxes collected from customers. The majority of the Company’s contracts include multiple performance obligations related to the delivery of specifically identifiable products, which generally have a duration of less than one year. For sales contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation using stated contractual price, which represents the standalone selling price of each distinct good sold under the contract. Generally, the Company’s service contracts have a single performance obligation. The following table represents a disaggregation of revenue from contracts with customers: Third Quarter First Three Quarters (in thousands) 2018 2017 2018 2017 Point in time net sales: Nonalcoholic - point in time $ 1,168,276 $ 1,132,181 $ 3,394,253 $ 3,112,777 Total point in time net sales $ 1,168,276 $ 1,132,181 $ 3,394,253 $ 3,112,777 Over time net sales: Nonalcoholic - over time $ 11,936 $ 10,057 $ 33,239 $ 27,197 Other - over time 31,449 20,288 83,505 57,545 Total over time net sales $ 43,385 $ 30,345 $ 116,744 $ 84,742 Total net sales $ 1,211,661 $ 1,162,526 $ 3,510,997 $ 3,197,519 The Company sells its products and extends credit, generally without requiring collateral, based on an ongoing evaluation of the customer’s business prospects and financial condition. The Company evaluates the collectability of its trade accounts receivable based on a number of factors, including the Company’s historic collections pattern and changes to a specific customer’s ability to meet its financial obligations. The Company has established an allowance for doubtful accounts to adjust the recorded receivable to the estimated amount the Company believes will ultimately be collected. The nature of the Company’s contracts gives rise to several types of variable consideration, including prospective and retrospective rebates. The Company accounts for its prospective and retrospective rebates using the expected value method, which estimates the net price to the customer based on the customer’s expected annual sales volume projections. The Company experiences customer returns primarily as a result of damaged or out-of-date product. At any given time, the Company estimates less than 1% of bottle/can sales and post-mix sales could be at risk for return by customers. The Company’s reserve for customer returns was $2.3 million as of September 30, 2018 and was included in the allowance for doubtful accounts in the consolidated condensed balance sheet |
Acquisitions and Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | 3. Acquisitions and Divestitures As part of The Coca‑Cola Company’s plans to refranchise its North American bottling territories, the Company and Piedmont Coca‑Cola Bottling Partnership, a partnership formed by the Company and The Coca‑Cola Company (“Piedmont”), completed a series of transactions from April 2013 to October 2017 with The Coca‑Cola Company, Coca‑Cola Refreshments USA, Inc. (“CCR”), a wholly-owned subsidiary of The Coca‑Cola Company and Coca‑Cola Bottling Company United, Inc. (“United”), an independent bottler that is unrelated to the Company, to significantly expand the Company’s distribution and manufacturing operations (the “System Transformation”). The System Transformation included the acquisition and exchange of rights to serve distribution territories and related distribution assets, as well as the acquisition and exchange of regional manufacturing facilities and related manufacturing assets. A summary of the System Transformation transactions (the “System Transformation Transactions”) completed by the Company is included in the Company’s Annual Report on Form 10‑K for 2017. Following is a summary of the System Transformation Transactions for which final post-closing adjustments were completed during the third quarter of 2018 in accordance with the terms and conditions of the applicable asset purchase agreement or asset exchange agreement for such transactions. As of September 30, 2018, the cash purchase prices or settlement amounts for all System Transformation Transactions have been resolved according to the terms of the transaction agreements. The post-closing adjustments made during the third quarter of 2018 resulted in a $10.2 million net adjustment to the gain on exchange transactions in the consolidated condensed statements of operations. Acquisition of Arkansas Distribution Territories and Memphis, Tennessee and West Memphis, Arkansas Regional Manufacturing Facilities in exchange for the Company’s Deep South and Somerset Distribution Territories and Mobile, Alabama Manufacturing Facility (the “CCR Exchange Transaction”) On October 2, 2017, the Company (i) acquired from CCR distribution rights and related assets in territories previously served by CCR through CCR’s facilities and equipment located in central and southern Arkansas and two regional manufacturing facilities located in Memphis, Tennessee and West Memphis, Arkansas and related manufacturing assets (collectively, the “CCR Exchange Business”) in exchange for which the Company (ii) transferred to CCR distribution rights and related assets in territories previously served by the Company through its facilities and equipment located in portions of southern Alabama, southeastern Mississippi, southwestern Georgia and northwestern Florida and in and around Somerset, Kentucky and a regional manufacturing facility located in Mobile, Alabama and related manufacturing assets (collectively, the “Deep South and Somerset Exchange Business”), pursuant to an asset exchange agreement entered into by the Company, certain of its wholly-owned subsidiaries and CCR on September 29, 2017. At closing, the Company paid CCR $15.9 million toward the settlement amount for the CCR Exchange Transaction, representing an estimate of the difference between the value of the CCR Exchange Business acquired by the Company and the value of the Deep South and Somerset Exchange Business acquired by CCR. During the fourth quarter of 2017, the Company recorded certain adjustments to this settlement amount as a result of changes in estimated net working capital and other fair value adjustments. The settlement amount was included in accounts payable to The Coca‑Cola Company in the consolidated condensed balance sheet During the third quarter of 2018, all post-closing adjustments were finalized for the CCR Exchange Transaction, resulting in a final settlement amount for the CCR Exchange Transaction of $26.2 million. A net balance of $10.3 million related to the settlement amount for the CCR Exchange Transaction remained payable to CCR by the Company as of September 30, 2018. This balance was paid to CCR during the fourth quarter of 2018. Acquisition of Memphis, Tennessee Distribution Territories (the “Memphis Transaction”) On October 2, 2017, the Company acquired distribution rights and related assets in territories previously served by CCR through CCR’s facilities and equipment located in and around Memphis, Tennessee, including portions of northwestern Mississippi and eastern Arkansas (the “Memphis Territory”), pursuant to an asset purchase agreement entered by the Company and CCR on September 29, 2017 (the “September 2017 APA”). At closing, the Company paid CCR $39.6 million toward the purchase price for the Memphis Transaction. During the second and third quarters of 2018, all post-closing adjustments were finalized for the Memphis Transaction, resulting in a net increase of $2.6 million in the cash purchase price, which was paid to CCR during the third quarter of 2018. Acquisition of Spartanburg and Bluffton, South Carolina Distribution Territories in exchange for the Company’s Florence and Laurel Territories and Piedmont’s Northeastern Georgia Territories (the “United Exchange Transaction”) On October 2, 2017, the Company and Piedmont completed exchange transactions in which (i) the Company acquired from United distribution rights and related assets in territories previously served by United through United’s facilities and equipment located in and around Spartanburg, South Carolina and a portion of United’s territory located in and around Bluffton, South Carolina (collectively, the “United Distribution Business”) and Piedmont acquired from United similar rights, assets and liabilities, and working capital in the remainder of United’s Bluffton, South Carolina territory, in exchange for which (ii) the Company transferred to United distribution rights and related assets in territories previously served by the Company through its facilities and equipment located in parts of northwestern Alabama, south-central Tennessee and southeastern Mississippi previously served by the Company’s distribution centers located in Florence, Alabama and Laurel, Mississippi (collectively, the “Florence and Laurel Distribution Business”) and Piedmont transferred to United similar rights, assets and liabilities, and working capital of Piedmont’s in territory located in parts of northeastern Georgia (the “Northeastern Georgia Distribution Business”), pursuant to an asset exchange agreement between the Company, certain of its wholly-owned subsidiaries and United dated September 29, 2017 and an asset exchange agreement between Piedmont and United dated September 29, 2017. At closing, the Company and Piedmont paid United $3.4 million toward the settlement amount for the United Exchange Transaction, representing an estimate of (i) the difference between the value of the United Distribution Business acquired by the Company and the value of the Florence and Laurel Distribution Business acquired by United, plus (ii) the difference between the value of the portion of the Bluffton, South Carolina territory acquired by Piedmont and the value of the Northeastern Georgia Distribution Business acquired by United. During the third quarter of 2018, all post-closing adjustments were finalized for the United Exchange Transaction, resulting in an increase of $2.8 million in the settlement amount, which was included in accounts payable, trade in the consolidated condensed balance sheet Collectively, the CCR Exchange Transaction, the Memphis Transaction and the United Exchange Transaction are the “October 2017 Transactions,” the CCR Exchange Business, the Memphis Territory and the United Distribution Business are the “October 2017 Acquisitions” and the Deep South and Somerset Exchange Business and the Florence and Laurel Distribution Business are the “October 2017 Divestitures.” In addition to the October 2017 Transactions summarized above, the Company completed three additional System Transformation Transactions with CCR in 2017 for which all post-closing adjustments have been completed: (i) the acquisition from CCR of distribution rights and related assets for territories in Anderson, Fort Wayne, Lafayette, South Bend and Terre Haute, Indiana on January 27, 2017 (the “January 2017 Transaction”), (ii) the acquisition from CCR of distribution rights and related assets for territories in Indianapolis and Bloomington, Indiana and Columbus and Mansfield, Ohio and regional manufacturing facilities and related assets located in Indianapolis and Portland, Indiana on March 31, 2017 (the “March 2017 Transactions”), and (iii) the acquisition from CCR of distribution rights and related assets for territories in Akron, Elyria, Toledo, Willoughby and Youngstown, Ohio and a regional manufacturing facility and related assets located in Twinsburg, Ohio on April 28, 2017 (the “April 2017 Transactions”). Post-closing adjustments for the January 2017 Transaction and the March 2017 Transactions were completed during 2017 and post-closing adjustments for the April 2017 Transactions were completed during the second quarter of 2018. During the fourth quarter of 2017, the cash purchase price for the April 2017 Transactions decreased by $4.7 million as a result of net working capital and other fair value adjustments, which was paid to the Company by The Coca‑Cola Company during the second quarter of 2018. The fair value of acquired assets and assumed liabilities of the System Transformation Transactions that closed during 2017 (the “2017 System Transformation Transactions”), as of the acquisition dates, is summarized as follows: (in thousands) January 2017 Transaction March 2017 Transactions April 2017 Transactions October 2017 Acquisitions Total 2017 System Transformation Transactions Acquisitions Cash $ 107 $ 211 $ 103 $ 191 $ 612 Inventories 5,953 20,952 14,554 14,850 56,309 Prepaid expenses and other current assets 1,155 5,117 4,068 4,573 14,913 Accounts receivable from The Coca-Cola Company 1,042 1,807 2,552 1,447 6,848 Property, plant and equipment 25,708 81,638 52,263 71,589 231,198 Other assets (including deferred taxes) 1,158 3,227 3,960 1,300 9,645 Goodwill 1,544 2,527 16,941 11,442 32,454 Distribution agreements 22,000 46,750 19,500 129,450 217,700 Customer lists 1,500 1,750 1,000 4,950 9,200 Total acquired assets $ 60,167 $ 163,979 $ 114,941 $ 239,792 $ 578,879 Current liabilities (acquisition related contingent consideration) $ 1,350 $ 2,958 $ 1,475 $ 1,501 $ 7,284 Other current liabilities 324 3,760 2,860 8,311 15,255 Other liabilities (acquisition related contingent consideration) 26,377 49,739 25,616 20,676 122,408 Other liabilities 43 2,953 1,792 102 4,890 Total assumed liabilities $ 28,094 $ 59,410 $ 31,743 $ 30,590 $ 149,837 The fair value of acquired assets and assumed liabilities in the October 2017 Acquisitions as of the acquisition date is summarized as follows: (in thousands) CCR Exchange Business Memphis Territory United Exchange Business Total October 2017 Acquisitions Cash $ 91 $ 100 $ - $ 191 Inventories 10,667 3,354 829 14,850 Prepaid expenses and other current assets 3,172 1,087 314 4,573 Accounts receivable from The Coca-Cola Company 674 563 210 1,447 Property, plant and equipment 47,484 21,321 2,784 71,589 Other assets (including deferred taxes) 753 547 - 1,300 Goodwill 3,546 5,199 2,697 11,442 Distribution agreements 80,100 35,400 13,950 129,450 Customer lists 3,200 1,200 550 4,950 Total acquired assets $ 149,687 $ 68,771 $ 21,334 $ 239,792 Current liabilities (acquisition related contingent consideration) $ - $ 1,501 $ - $ 1,501 Other current liabilities 3,497 4,323 491 8,311 Other liabilities (acquisition related contingent consideration) - 20,676 - 20,676 Other liabilities 15 87 - 102 Total assumed liabilities $ 3,512 $ 26,587 $ 491 $ 30,590 The goodwill for the 2017 System Transformation Transactions is included in the Nonalcoholic Beverages segment and is primarily attributed to operational synergies and the workforce acquired. Goodwill of $11.4 million, $3.5 million, $8.6 million and $2.7 million is expected to be deductible for tax purposes for the April 2017 Transactions, the CCR Exchange Business, the Memphis Territory and the United Exchange Business, respectively. No goodwill is expected to be deductible for tax purposes for the January 2017 Transaction or the March 2017 Transactions. The carrying value of assets and liabilities divested in the October 2017 Divestitures is summarized as follows: (in thousands) October 2017 Divestitures Cash $ 303 Inventories 13,717 Prepaid expenses and other current assets 1,199 Property, plant and equipment 44,380 Other assets (including deferred taxes) 604 Goodwill 13,073 Distribution agreements 65,043 Total divested assets $ 138,319 Other current liabilities $ 5,683 Pension and postretirement benefit obligation 16,855 Total divested liabilities $ 22,538 The October 2017 Divestitures were recorded in the Company’s Nonalcoholic Beverages segment prior to divestiture. System Transformation Transactions Financial Results The financial results of the System Transformation Transactions have been included in the Company’s consolidated condensed financial statements from their respective acquisition or exchange dates. Net sales and income from operations for certain territories and regional manufacturing facilities acquired and divested by the Company during 2017 are impracticable to separately calculate, as the operations were absorbed into territories and facilities owned by the Company prior to the System Transformation, and therefore have been omitted from the results below. Omission of net sales and income from operations for such territories and facilities is not considered material to the results presented below. The remaining 2017 System Transformation Transactions contributed the following amounts to the Company’s consolidated condensed statements of operations: Third Quarter First Three Quarters (in thousands) 2018 2017 2018 2017 Impact to net sales - total 2017 System Transformation Transactions acquisitions $ 308,825 $ 221,034 $ 896,179 $ 454,174 Impact to net sales - October 2017 Divestitures - 79,032 - 231,301 Total impact to net sales $ 308,825 $ 300,066 $ 896,179 $ 685,475 Impact to income from operations - total 2017 System Transformation Transactions acquisitions $ 11,874 $ 3,176 $ 14,635 $ 13,595 Impact to income from operations - October 2017 Divestitures - 7,689 - 22,973 Total impact to income from operations $ 11,874 $ 10,865 $ 14,635 $ 36,568 The Company incurred transaction related expenses for the System Transformation Transactions of $5.6 million in the first three quarters of 2017, which were included within S,D&A expenses on the consolidated condensed statements of operations. System Transformation Transactions Pro Forma Financial Information The purpose of the pro forma disclosure is to present the net sales and the income from operations of the combined entity as though the 2017 System Transformation Transactions had occurred as of the beginning of 2017. The pro forma combined net sales and income from operations do not necessarily reflect what the combined Company’s net sales and income from operations would have been had the acquisitions occurred at the beginning of 2017. The pro forma financial information also may not be useful in predicting the future financial results of the combined company. The actual results may differ significantly from the pro forma amounts reflected herein due to a variety of factors. The following table represents the Company’s unaudited pro forma net sales and unaudited pro forma income from operations for the 2017 System Transformation Transactions. Third Quarter 2017 First Three Quarters 2017 (in thousands) Net Sales Income from Operations Net Sales Income from Operations Balance as reported $ 1,162,526 $ 37,472 $ 3,197,519 $ 101,077 Pro forma adjustments (unaudited) 1,754 55 231,183 4,262 Balance including pro forma adjustments (unaudited) $ 1,164,280 $ 37,527 $ 3,428,702 $ 105,339 The net sales pro forma and the income from operations pro forma reflect adjustments for (i) the inclusion of historic results of operations for the distribution territories and the regional manufacturing facilities acquired in the System Transformation Transactions for the period prior to the Company’s acquisition of the applicable territories or facility, for each period presented and (ii) the elimination of historic results of operations for the October 2017 Divestitures. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories Inventories consisted of the following: (in thousands) September 30, 2018 December 31, 2017 Finished products $ 156,669 $ 116,354 Manufacturing materials 35,703 33,073 Plastic shells, plastic pallets and other inventories 37,520 34,191 Total inventories $ 229,892 $ 183,618 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 9 Months Ended |
Sep. 30, 2018 | |
Prepaid Expense And Other Assets [Abstract] | |
Prepaid Expenses and Other Current Assets | 5. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: (in thousands) September 30, 2018 December 31, 2017 Repair parts $ 29,535 $ 30,530 Current portion of income taxes 22,896 35,930 Prepaid software 5,786 5,855 Prepayments for sponsorship contracts 5,644 6,358 Commodity hedges at fair market value 1,047 4,420 Other prepaid expenses and other current assets 26,606 17,553 Total prepaid expenses and other current assets $ 91,514 $ 100,646 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 9 Months Ended |
Sep. 30, 2018 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment, Net | 6. Property, Plant and Equipment, Net The principal categories and estimated useful lives of property, plant and equipment, net were as follows: (in thousands) September 30, 2018 December 31, 2017 Estimated Useful Lives Land $ 78,478 $ 78,825 Buildings 216,821 211,308 8-50 years Machinery and equipment 320,447 315,117 5-20 years Transportation equipment 373,426 351,479 4-20 years Furniture and fixtures 92,000 89,559 3-10 years Cold drink dispensing equipment 497,008 488,208 5-17 years Leasehold and land improvements 130,257 125,348 5-20 years Software for internal use 120,767 113,490 3-10 years Construction in progress 13,524 25,490 Total property, plant and equipment, at cost 1,842,728 1,798,824 Less: Accumulated depreciation and amortization 844,611 767,436 Property, plant and equipment, net $ 998,117 $ 1,031,388 Depreciation expense, which includes amortization expense for leased property under capital leases, was $123.5 million in the first three quarters of 2018 and $108.7 million in the first three quarters of 2017. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 7. Goodwill A reconciliation of the activity for goodwill for the first three quarters of 2018 and the first three quarters of 2017 is as follows: First Three Quarters (in thousands) 2018 2017 Beginning balance - goodwill $ 169,316 $ 144,586 System Transformation Transactions acquisitions - 19,035 Measurement period adjustments (1) (3,413 ) 1,807 Balance held for sale (2) - (12,727 ) Ending balance - goodwill $ 165,903 $ 152,701 (1) (2) Goodwill of $12.7 million related to the October 2017 Divestitures was classified as held for sale as of October 1, 2017. The Company’s goodwill resides entirely within the Nonalcoholic Beverages segment. The Company performs its annual impairment test of goodwill as of the first day of the fourth quarter of each fiscal year. During the first three quarters of 2018, the Company did not experience any triggering events or changes in circumstances indicating the carrying amounts of the Company’s goodwill exceeded fair values. |
Distribution Agreements, Net
Distribution Agreements, Net | 9 Months Ended |
Sep. 30, 2018 | |
Distribution Agreements [Member] | |
Other Identifiable Intangible Assets Net | 8. Distribution Agreements, Net Distribution agreements, net, which are amortized on a straight line basis and have an estimated useful life of 20 to 40 years, consisted of the following: (in thousands) September 30, 2018 December 31, 2017 Distribution agreements at cost $ 945,895 $ 939,527 Less: Accumulated amortization (44,064 ) (26,175 ) Distribution agreements, net $ 901,831 $ 913,352 A reconciliation of the activity for distribution agreements, net for the first three quarters of 2018 and the first three quarters of 2017 is as follows: First Three Quarters (in thousands) 2018 2017 Beginning balance - distribution agreements, net $ 913,352 $ 234,988 Conversion to distribution rights from franchise rights (1) - 533,040 System Transformation Transactions acquisitions - 36,800 Measurement period adjustment (2) 4,700 - Other distribution agreements 1,668 44 Additional accumulated amortization (17,889 ) (11,774 ) Balance held for sale (3) - (63,321 ) Ending balance - distribution agreements, net $ 901,831 $ 729,777 (1) In connection with the closing of the March 2017 Transactions, the Company, The Coca-Cola Company and CCR entered into a comprehensive beverage agreement (as amended, the “CBA”) on March 31, 2017, and concurrently converted the Company’s franchise rights within the territories in which the Company distributed Coca‑Cola products prior to beginning the System Transformation to distribution agreements, net on the consolidated condensed financial statements. Prior to this conversion, the Company’s franchise rights resided entirely within the Nonalcoholic Beverages segment. (2) Measurement period adjustment relates to post-closing adjustments made in relation to the Memphis Transaction in accordance with the terms and conditions of the September 2017 APA. The adjustment to amortization expense associated with this measurement period adjustment was not material to the consolidated condensed financial statements. See Note 3 to the consolidated condensed financial statements for additional information on the System Transformation Transactions. (3) Distribution agreements, net of $63.3 million related to the was classified as held for sale as of October 1, 2017. |
Customer Lists and Other Identi
Customer Lists and Other Identifiable Intangible Assets, Net | 9 Months Ended |
Sep. 30, 2018 | |
Customer Lists and Other Identifiable Intangible Assets [Member] | |
Other Identifiable Intangible Assets Net | 9. Customer Lists and Other Identifiable Intangible Assets, Net Customer lists and other identifiable intangible assets, net, which are amortized on a straight line basis and have an estimated useful life of 12 to 20 years, consisted of the following: (in thousands) September 30, 2018 December 31, 2017 Customer lists and other identifiable intangible assets at cost $ 25,288 $ 25,288 Less: Accumulated amortization (8,347 ) (6,968 ) Customer lists and other identifiable intangible assets, net $ 16,941 $ 18,320 A reconciliation of the activity for customer lists and other identifiable intangible assets, net for the first three quarters of 2018 and the first three quarters of 2017 is as follows: First Three Quarters (in thousands) 2018 2017 Beginning balance - customer lists and other identifiable intangible assets, net $ 18,320 $ 10,427 System Transformation Transactions acquisitions - 3,800 Additional accumulated amortization (1,379 ) (965 ) Ending balance - customer lists and other identifiable intangible assets, net $ 16,941 $ 13,262 |
Other Accrued Liabilities
Other Accrued Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Payables And Accruals [Abstract] | |
Other Accrued Liabilities | 10. Other Accrued Liabilities Other accrued liabilities consisted of the following: (in thousands) September 30, 2018 December 31, 2017 Accrued insurance costs $ 39,299 $ 35,433 Employee and retiree benefit plan accruals 25,950 27,024 Accrued marketing costs 25,875 33,376 Current portion of acquisition related contingent consideration 25,306 23,339 Checks and transfers yet to be presented for payment from zero balance cash accounts 11,900 37,262 Accrued taxes (other than income taxes) 5,811 6,391 Current deferred proceeds from Territory Conversion Fee (1) 2,286 2,286 All other accrued expenses 17,182 20,419 Total other accrued liabilities $ 153,609 $ 185,530 (1) Pursuant to a territory conversion agreement entered into by the Company, The Coca‑Cola Company and CCR in September 2015 (as amended), upon the conversion of the Company’s then-existing bottling agreements to the CBA on March 31, 2017, the Company received a one-time fee from CCR, which, after final adjustments made during the second quarter of 2017, totaled $91.5 million (the “Territory Conversion Fee”). The Territory Conversion Fee was recorded as a deferred liability and will be amortized as a reduction to cost of sales over a period of 40 years. The portion of the deferred liability that is expected to be amortized in the next twelve months was classified as current. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | 11. Debt Following is a summary of the Company’s debt: (in thousands) Maturity Date Interest Rate Interest Paid Public / Non-public September 30, 2018 December 31, 2017 Senior Notes (1) 4/15/2019 7.00% Semi-annually Public $ 110,000 $ 110,000 Term Loan Facility (1) 6/7/2021 Variable Varies Non-public 292,500 300,000 Senior Notes 2/27/2023 3.28% Semi-annually Non-public 125,000 125,000 Revolving Credit Facility 6/8/2023 Variable Varies Non-public 170,000 207,000 Senior Notes 11/25/2025 3.80% Semi-annually Public 350,000 350,000 Senior Notes 3/21/2030 3.96% Quarterly Non-public 150,000 - Unamortized discount on Senior Notes 4/15/2019 (143 ) (332 ) Unamortized discount on Senior Notes 11/25/2025 (63 ) (70 ) Debt issuance costs (3,185 ) (3,580 ) Total debt 1,194,109 1,088,018 Less: Current portion of debt - - Long-term debt $ 1,194,109 $ 1,088,018 (1) Pursuant to the Company’s Term Loan Facility (as defined below) and the indenture under which the senior notes due in 2019 were issued, principal payments will be due in the next twelve months. The Company intends to refinance these amounts and has the capacity to do so under its Revolving Credit Facility (as defined below), which is classified as long-term debt. As such, any amounts due in the next twelve months were classified as non-current. The Company had capital lease obligations of $37.3 million on September 30, 2018 and $43.5 million on December 31, 2017. The Company mitigates its financing risk by using multiple financial institutions and only entering into credit arrangements with institutions with investment grade credit ratings. The Company monitors counterparty credit ratings on an ongoing basis. On June 8, 2018, the Company entered into a second amended and restated credit agreement for a five-year unsecured revolving credit facility (as amended, the “Revolving Credit Facility”), which amended and restated its prior credit agreement dated October 16, 2014. The Revolving Credit Facility has an aggregate maximum borrowing capacity of $500 million, which may be increased at the Company’s option to $750 million, subject to obtaining commitments from the lenders and satisfying other conditions specified in the credit agreement. Borrowings under the Revolving Credit Facility bear interest at a floating base rate or a floating Eurodollar rate plus an applicable margin, at the Company’s option, dependent on the Company’s credit ratings at the time of borrowing. At the Company’s current credit ratings, the Company must pay an annual facility fee of 0.15% of the lenders’ aggregate commitments under the Revolving Credit Facility. The Revolving Credit Facility has a scheduled maturity date of June 8, 2023. On March 21, 2018, the Company sold $150 million aggregate principal amount of senior unsecured notes due 2030 to NYL Investors LLC (“NYL”) and certain of its affiliates pursuant to the Note Purchase and Private Shelf Agreement dated March 6, 2018 between the Company, NYL and the other parties thereto (as amended, the “NYL Shelf Facility”). These notes bear interest at 3.96%, payable quarterly in arrears on March 21, June 21, September 21 and December 21 of each year, and will mature on March 21, 2030, unless earlier redeemed by the Company. In February 2017, the Company sold $125 million aggregate principal amount of senior unsecured notes due 2023 to PGIM, Inc. (“Prudential”) and certain of its affiliates pursuant to the Note Purchase and Private Shelf Agreement dated June 10, 2016 between the Company, Prudential and the other parties thereto (as amended, the “Prudential Shelf Facility”). These notes bear interest at 3.28%, payable semi-annually in arrears on February 27 and August 27 of each year, and will mature on February 27, 2023 unless earlier redeemed by the Company. The Company may request that Prudential consider the purchase of additional senior unsecured notes of the Company under the Prudential Shelf Facility in an aggregate principal amount of up to $175 million. In June 2016, the Company entered into a five-year term loan agreement for a senior unsecured term loan facility (as amended, the “Term Loan Facility”) in the aggregate principal amount of $300 million, maturing June 7, 2021. The Company may request additional term loans under the agreement, provided the Company’s aggregate borrowings under the Term Loan Facility do not exceed $500 million. Borrowings under the Term Loan Facility bear interest at a floating base rate or a floating Eurodollar rate plus an applicable margin, at the Company’s option, dependent on the Company’s credit ratings. During the third quarter of 2018, the Company amended each of the Revolving Credit Facility, the NYL Shelf Facility, the Prudential Shelf Facility and the Term Loan Facility to (i) align the calculation of the two financial covenants and certain events of default under each agreement and (ii) with regard to the Term Loan Facility, to revise the calculation of the rates at which borrowings bear interest to conform with the calculation of such rates under the Revolving Credit Facility. The Revolving Credit Facility, the NYL Shelf Facility, the Prudential Shelf Facility and the Term Loan Facility include two financial covenants: a consolidated cash flow/fixed charges ratio and a consolidated funded indebtedness/cash flow ratio, each as defined in the respective agreements. The Company was in compliance with these covenants as of September 30, 2018. These covenants do not currently, and the Company does not anticipate they will, restrict its liquidity or capital resources. The indentures under which the Company’s public debt was issued do not include financial covenants but do limit the incurrence of certain liens and encumbrances as well as indebtedness by the Company’s subsidiaries in excess of certain amounts. All outstanding long-term debt has been issued by the Company and none has been issued by any of its subsidiaries. There are no guarantees of the Company’s debt. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 12. Derivative Financial Instruments The Company is subject to the risk of increased costs arising from adverse changes in certain commodity prices. In the normal course of business, the Company manages these risks through a variety of strategies, including the use of derivative instruments. The Company does not use derivative instruments for trading or speculative purposes. All derivative instruments are recorded at fair value as either assets or liabilities in the Company’s consolidated condensed balance sheets. These derivative instruments are not designated as hedging instruments under GAAP and are used as “economic hedges” to manage certain commodity price risk. Derivative instruments held are marked to market on a monthly basis and recognized in earnings consistent with the expense classification of the underlying hedged item. Settlements of derivative agreements are included in cash flows from operating activities on the Company’s consolidated condensed statements of cash flows. The Company uses several different financial institutions for commodity derivative instruments to minimize the concentration of credit risk. While the Company would be exposed to credit loss in the event of nonperformance by these counterparties, the Company does not anticipate nonperformance by these parties. The following table summarizes pre-tax changes in the fair value of the Company’s commodity derivative financial instruments and the classification of such changes in the consolidated condensed statements of operations. Third Quarter First Three Quarters (in thousands) Classification of Gain (Loss) 2018 2017 2018 2017 Commodity hedges Cost of sales $ (260 ) $ 2,042 $ (2,776 ) $ 2,066 Commodity hedges Selling, delivery and administrative expenses (209 ) 1,359 (363 ) 475 Total gain (loss) $ (469 ) $ 3,401 $ (3,139 ) $ 2,541 The following table summarizes the fair values and classification in the consolidated condensed balance sheets of derivative instruments held by the Company: (in thousands) Balance Sheet Classification September 30, 2018 December 31, 2017 Assets: Commodity hedges at fair market value Prepaid expenses and other current assets $ 1,047 $ 4,420 Commodity hedges at fair market value Other assets 234 - Total assets $ 1,281 $ 4,420 The Company has master agreements with the counterparties to its derivative financial agreements that provide for net settlement of derivative transactions. Accordingly, the net amounts of derivative assets are recognized in either prepaid expenses and other current assets or other assets in the Company’s consolidated condensed balance sheets and the net amounts of derivative liabilities are recognized in other accrued liabilities or other liabilities in the consolidated condensed balance sheets. The following table summarizes the Company’s gross derivative assets and gross derivative liabilities in the consolidated condensed balance sheets: (in thousands) September 30, 2018 December 31, 2017 Gross derivative assets $ 15,633 $ 4,481 Gross derivative liabilities 14,352 61 The following table summarizes the Company’s outstanding commodity derivative agreements: (in thousands) September 30, 2018 December 31, 2017 Notional amount of outstanding commodity derivative agreements $ 143,282 $ 59,564 Latest maturity date of outstanding commodity derivative agreements December 2019 December 2018 |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Financial Instruments | 13. Fair Values of Financial Instruments GAAP requires assets and liabilities carried at fair value to be classified and disclosed in one of the following categories: • Level 1: Quoted market prices in active markets for identical assets or liabilities. • Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. • Level 3: Unobservable inputs that are not corroborated by market data. The following methods and assumptions were used by the Company in estimating the fair values of its financial instruments. There were no transfers of assets or liabilities between levels in any period presented. Financial Instrument Fair Value Level Method and Assumptions Deferred compensation plan assets and liabilities Level 1 The fair value of the Company’s non-qualified deferred compensation plan for certain executives and other highly compensated employees is based on the fair values of associated assets and liabilities, which are held in mutual funds and are based on the quoted market value of the securities held within the mutual funds. Commodity hedging agreements Level 2 The fair values of the Company’s commodity hedging agreements are based on current settlement values at each balance sheet date. The fair values of the commodity hedging agreements at each balance sheet date represent the estimated amounts the Company would have received or paid upon termination of these agreements. The Company’s credit risk related to the derivative financial instruments is managed by requiring high standards for its counterparties and periodic settlements. The Company considers nonperformance risk in determining the fair value of derivative financial instruments. Non-public variable rate debt Level 2 The carrying amounts of the Company’s non-public variable rate debt approximate their fair values due to variable interest rates with short reset periods. Non-public fixed rate debt Level 2 The fair values of the Company’s non-public fixed rate debt are based on estimated current market prices. Public debt securities Level 2 The fair values of the Company’s public debt securities are based on estimated current market prices. Acquisition related contingent consideration Level 3 The fair values of acquisition related contingent consideration are based on internal forecasts and the weighted average cost of capital (“WACC”) derived from market data. The following tables summarize, by assets and liabilities, the carrying amounts and fair values by level of the Company’s deferred compensation plan, commodity hedging agreements, debt and acquisition related contingent consideration: September 30, 2018 Carrying Total Fair Value Fair Value Fair Value (in thousands) Amount Fair Value Level 1 Level 2 Level 3 Assets: Deferred compensation plan assets $ 36,291 $ 36,291 $ 36,291 $ - $ - Commodity hedging agreements 1,281 1,281 - 1,281 - Liabilities: Deferred compensation plan liabilities 36,291 36,291 36,291 - - Non-public variable rate debt 462,031 462,500 - 462,500 - Non-public fixed rate debt 274,697 256,200 - 256,200 - Public debt securities 457,381 457,800 - 457,800 - Acquisition related contingent consideration 363,836 363,836 - - 363,836 December 31, 2017 Carrying Total Fair Value Fair Value Fair Value (in thousands) Amount Fair Value Level 1 Level 2 Level 3 Assets: Deferred compensation plan assets $ 33,166 $ 33,166 $ 33,166 $ - $ - Commodity hedging agreements 4,420 4,420 - 4,420 - Liabilities: Deferred compensation plan liabilities 33,166 33,166 33,166 - - Non-public variable rate debt 506,398 507,000 - 507,000 - Non-public fixed rate debt 124,829 126,400 - 126,400 - Public debt securities 456,791 475,100 - 475,100 - Acquisition related contingent consideration 381,291 381,291 - - 381,291 Under the CBA, the Company is required to make quarterly sub-bottling payments to CCR on a continuing basis for the grant of exclusive rights to distribute, promote, market and sell specified covered beverages and beverage products in the distribution territories acquired in the System Transformation, excluding territories the Company acquired in an exchange transaction. This acquisition related contingent consideration is valued using a probability weighted discounted cash flow model based on internal forecasts and the WACC derived from market data, which are considered Level 3 inputs. Each reporting period, the Company adjusts its acquisition related contingent consideration liability related to the distribution territories to fair value by discounting future expected sub-bottling payments required under the CBA using the Company’s estimated WACC. These future expected sub-bottling payments extend through the life of the related distribution assets acquired in each distribution territory, which is generally 40 The acquisition related contingent consideration is the Company’s only Level 3 asset or liability. A reconciliation of the Level 3 activity is as follows: Third Quarter First Three Quarters (in thousands) 2018 2017 2018 2017 Beginning balance - Level 3 liability $ 374,537 $ 319,102 $ 381,291 $ 253,437 Increase due to System Transformation Transactions acquisitions - - - 46,086 Measurement period adjustments (1) (1,279 ) - 813 - Payment of acquisition related contingent consideration (7,049 ) (5,094 ) (18,312 ) (11,650 ) Reclassification to current payables - 150 (1,540 ) (2,080 ) (Favorable)/unfavorable fair value adjustment (2,373 ) (5,225 ) 1,584 23,140 Ending balance - Level 3 liability $ 363,836 $ 308,933 $ 363,836 $ 308,933 (1) Measurement period adjustments relate to post-closing adjustments made in relation to the April 2017 Transactions and the October 2017 Transactions in accordance with the terms and conditions of the applicable asset purchase agreement or asset exchange agreement. See Note 3 to the consolidated condensed financial statements for additional information on the System Transformation Transactions. The fair value adjustments to the acquisition related contingent consideration liability during the first three quarters of 2018 were primarily driven by changes to the risk-free interest rate and the projected future operating results of the distribution territories acquired as part of the System Transformation subject to sub-bottling fees, partially offset by The anticipated amount the Company could pay annually under the acquisition related contingent consideration arrangements for the System Transformation Transactions is expected to be in the range of |
Other Liabilities
Other Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Payables And Accruals [Abstract] | |
Other Liabilities | 14. Other Liabilities Other liabilities consisted of the following: (in thousands) September 30, 2018 December 31, 2017 Non-current portion of acquisition related contingent consideration $ 338,530 $ 357,952 Accruals for executive benefit plans 128,079 125,791 Non-current deferred proceeds from Territory Conversion Fee 85,734 87,449 Non-current deferred proceeds from Legacy Facilities Credit (1) 30,568 29,881 Other 17,399 19,506 Total other liabilities $ 600,310 $ 620,579 (1) In December 2017, The Coca‑Cola Company agreed to provide the Company a one-time fee, which, after final adjustments made during the third quarter of 2018, totaled $44.3 million (the “Legacy Facilities Credit”). The Legacy Facilities Credit compensated the Company for the net economic impact of changes made by The Coca‑Cola Company to the authorized pricing on sales of covered beverages produced at the manufacturing facilities owned by Company prior to the System Transformation and sold to The Coca‑Cola Company and certain U.S. Coca‑Cola bottlers pursuant to new pricing mechanisms included in the regional manufacturing agreement entered into by the Company and The Coca‑Cola Company on March 31, 2017, as amended. The Company immediately recognized the portion of the Legacy Facilities Credit applicable to a regional manufacturing facility in Mobile, Alabama which the Company transferred to CCR as part of the CCR Exchange Transaction. The remaining balance of the Legacy Facilities Credit will be amortized as a reduction to cost of sales over a period of 40 years. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. Commitments and Contingencies Manufacturing Cooperatives The Company is a shareholder of South Atlantic Canners, Inc. (“SAC”), a manufacturing cooperative in Bishopville, South Carolina. All of SAC’s shareholders are Coca‑Cola bottlers and each has equal voting rights. The Company is obligated to purchase 17.5 million cases of finished product from SAC on an annual basis through June 2024. The Company purchased 22.2 million cases and 22.6 million cases of finished product from SAC in the first three quarters of 2018 and the first three quarters of 2017, respectively. The Company is also a shareholder of Southeastern Container (“Southeastern”), a plastic bottle manufacturing cooperative from which the Company is obligated to purchase at least 80% of its requirements of plastic bottles for certain designated territories. The Company accounts for Southeastern as an equity method investment. The following table summarizes the Company’s purchases from these manufacturing cooperatives: Third Quarter First Three Quarters (in thousands) 2018 2017 2018 2017 Purchases from SAC $ 38,569 $ 37,267 $ 117,729 $ 111,408 Purchases from Southeastern 32,379 29,344 92,613 80,301 Total purchases from manufacturing cooperatives $ 70,948 $ 66,611 $ 210,342 $ 191,709 The Company guarantees a portion of SAC’s debt, which expires at various dates through 2021. The amounts guaranteed were $23.9 million as of both September 30, 2018 and December 31, 2017. The Company does not anticipate SAC will fail to fulfill its commitment related to the debt. The Company further believes SAC has sufficient assets, including production equipment, facilities and working capital, and the ability to adjust selling prices of its products to adequately mitigate the risk of material loss from the Company’s guarantee. In the event SAC fails to fulfill its commitments under the related debt, the Company would be responsible for payments to the lenders up to the level of the guarantee. The following table summarizes the Company’s maximum exposure under this guarantee if SAC had borrowed up to its aggregate borrowing capacity: (in thousands) September 30, 2018 Maximum guaranteed debt $ 23,938 Equity investments (1) 8,175 Maximum total exposure, including equity investments $ 32,113 (1) Recorded in other assets on the Company’s consolidated condensed balance sheets. The Company holds no assets as collateral against the SAC guarantee, the fair value of which is immaterial to the Company’s consolidated condensed financial statements. The Company monitors its investments in SAC and would be required to write down its investment if an impairment was identified and the Company determined it to be other than temporary. No impairment of the Company’s investments in SAC was identified as of September 30, 2018, and there was no impairment identified in 2017. Other Commitments and Contingencies The Company has standby letters of credit, primarily related to its property and casualty insurance programs. These letters of credit totaled $35.6 million as of both September 30, 2018 and December 31, 2017. The Company participates in long-term marketing contractual arrangements with certain prestige properties, athletic venues and other locations. As of September 30, 2018, the future payments related to these contractual arrangements, which expire at various dates through 2033, amounted to $160.0 million. The Company is involved in various claims and legal proceedings which have arisen in the ordinary course of its business. Although it is difficult to predict the ultimate outcome of these claims and legal proceedings, management believes that the ultimate disposition of these matters will not have a material adverse effect on the financial condition, cash flows or results of operations of the Company. No material amount of loss in excess of recorded amounts is believed to be reasonably possible as a result of these claims and legal proceedings. The Company is subject to audits by tax authorities in jurisdictions where it conducts business. These audits may result in assessments that are subsequently resolved with the authorities or potentially through the courts. Management believes the Company has adequately provided for any assessments likely to result from these audits; however, final assessments, if any, could be different than the amounts recorded in the consolidated condensed financial statements. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 16. Income Taxes The Company’s effective income tax rate, as calculated by dividing income tax expense by income before income taxes, was 24.1% for the first three quarters of 2018 and 34.8% for the first three quarters of 2017. The decrease in the effective tax rate was primarily driven by the corporate rate reduction due to the Tax Act and its impact on prior estimates and lower income before income taxes, which was offset by an increase in certain non-deductible expenses. The Company’s effective income tax rate, as calculated by dividing income tax expense by income before income taxes minus net income attributable to noncontrolling interest, was 32.5% for the first three quarters of 2018 and 38.8% for the first three quarters of 2017. Shortly after the Tax Act was enacted, the SEC issued guidance under Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”) to address the application of GAAP and direct taxpayers to consider the impact of the Tax Act as “provisional” when a registrant does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete the accounting for the change in tax law. In accordance with SAB 118, the Company recognized a provisional tax benefit related to the re-measurement of its net deferred tax liability of $69.0 million as of December 31, 2017. During the third quarter of 2018, the Company recorded an additional provisional tax benefit of $1.9 million attributable to the re-measurement of its net deferred tax liability in connection with the filing of its 2017 federal income tax return. The ultimate impact may differ from the provisional amounts, possibly materially, due to, among other things, the significant complexity of the Tax Act, anticipated additional regulatory guidance or related interpretations that may be issued by the Internal Revenue Service (the “IRS”), changes in accounting standards, legislative actions, future actions by states within the U.S. and changes in estimates, analysis, interpretations and assumptions made by the Company. The Company had uncertain tax positions, including accrued interest, of $3.0 million on September 30, 2018 and $2.4 million on December 31, 2017, all of which would affect the Company’s effective tax rate if recognized. While it is expected the amount of uncertain tax positions may change in the next 12 months, the Company does not expect such change would have a significant impact on the consolidated condensed financial statements. Prior tax years beginning in year 2002 remain open to examination by the IRS, and various tax years beginning in year 1998 remain open to examination by certain state tax jurisdictions. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 17. Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) (“AOCI(L)”) is comprised of adjustments relative to the Company’s pension and postretirement medical benefit plans and foreign currency translation adjustments required for a subsidiary of the Company that performs data analysis and provides consulting services outside the United States. A summary of AOCI(L) for the third quarter of 2018 and the third quarter of 2017 is as follows: (in thousands) July 1, 2018 Pre-tax Activity Tax Effect September 30, 2018 Net pension activity: Actuarial loss $ (77,212 ) $ 934 $ (231 ) $ (76,509 ) Prior service costs (34 ) 6 (2 ) (30 ) Net postretirement benefits activity: Actuarial loss (22,767 ) 499 (123 ) (22,391 ) Prior service costs 1,048 (462 ) 114 700 Recognized loss due to October 2017 Divestitures (1) 6,220 - - 6,220 Foreign currency translation adjustment 8 (2 ) 1 7 Total $ (92,737 ) $ 975 $ (241 ) $ (92,003 ) (1) Recognized loss due to the divestiture of the Deep South and Somerset Exchange Business and the Florence and Laurel Distribution Business during the fourth quarter of 2017. (in thousands) July 2, 2017 Pre-tax Activity Tax Effect October 1, 2017 Net pension activity: Actuarial loss $ (71,402 ) $ 807 $ (311 ) $ (70,906 ) Prior service costs (52 ) 7 (3 ) (48 ) Net postretirement benefits activity: Actuarial loss (23,315 ) 648 (250 ) (22,917 ) Prior service costs 2,763 (745 ) 287 2,305 Foreign currency translation adjustment 5 11 (4 ) 12 Total $ (92,001 ) $ 728 $ (281 ) $ (91,554 ) A summary of AOCI(L) for the first three quarters of 2018 and the first three quarters of 2017 is as follows: (in thousands) December 31, 2017 Pre-tax Activity Tax Effect September 30, 2018 Net pension activity: Actuarial loss $ (78,618 ) $ 2,800 $ (691 ) $ (76,509 ) Prior service costs (43 ) 18 (5 ) (30 ) Net postretirement benefits activity: Actuarial loss (23,519 ) 1,497 (369 ) (22,391 ) Prior service costs 1,744 (1,386 ) 342 700 Recognized loss due to October 2017 Divestitures (1) 6,220 - - 6,220 Foreign currency translation adjustment 14 (10 ) 3 7 Total $ (94,202 ) $ 2,919 $ (720 ) $ (92,003 ) (1) Recognized loss due to the divestiture of the Deep South and Somerset Exchange Business and the Florence and Laurel Distribution Business during the fourth quarter of 2017. (in thousands) January 1, 2017 Pre-tax Activity Tax Effect October 1, 2017 Net pension activity: Actuarial loss $ (72,393 ) $ 2,421 $ (934 ) $ (70,906 ) Prior service costs (61 ) 21 (8 ) (48 ) Net postretirement benefits activity: Actuarial loss (24,111 ) 1,944 (750 ) (22,917 ) Prior service costs 3,679 (2,237 ) 863 2,305 Foreign currency translation adjustment (11 ) 37 (14 ) 12 Total $ (92,897 ) $ 2,186 $ (843 ) $ (91,554 ) A summary of the impact of AOCI(L) on certain statements of operations line items is as follows: Third Quarter 2018 (in thousands) Net Pension Activity Net Benefits Activity Foreign Currency Translation Adjustment Total Cost of sales $ 217 $ 6 $ - $ 223 Selling, delivery and administrative expenses 723 31 (2 ) 752 Subtotal pre-tax 940 37 (2 ) 975 Income tax expense 233 9 (1 ) 241 Total after tax effect $ 707 $ 28 $ (1 ) $ 734 Third Quarter 2017 (in thousands) Net Pension Activity Net Benefits Activity Foreign Currency Translation Adjustment Total Cost of sales $ 171 $ (21 ) $ - $ 150 Selling, delivery and administrative expenses 643 (76 ) 11 578 Subtotal pre-tax 814 (97 ) 11 728 Income tax expense 314 (37 ) 4 281 Total after tax effect $ 500 $ (60 ) $ 7 $ 447 First Three Quarters 2018 (in thousands) Net Pension Activity Net Benefits Activity Foreign Currency Translation Adjustment Total Cost of sales $ 648 $ 19 $ - $ 667 Selling, delivery and administrative expenses 2,170 92 (10 ) 2,252 Subtotal pre-tax 2,818 111 (10 ) 2,919 Income tax expense 696 27 (3 ) 720 Total after tax effect $ 2,122 $ 84 $ (7 ) $ 2,199 First Three Quarters 2017 (in thousands) Net Pension Activity Net Benefits Activity Foreign Currency Translation Adjustment Total Cost of sales $ 497 $ (64 ) $ - $ 433 Selling, delivery and administrative expenses 1,945 (230 ) 37 1,752 Subtotal pre-tax 2,442 (294 ) 37 2,185 Income tax expense 942 (114 ) 14 842 Total after tax effect $ 1,500 $ (180 ) $ 23 $ 1,343 |
Capital Transactions
Capital Transactions | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Capital Transactions | 18. Capital Transactions During the first quarter of each year, the Compensation Committee of the Company’s Board of Directors (the “Committee”) determines whether any shares of the Company’s Class B Common Stock should be issued to J. Frank Harrison, III, in connection with his services for the prior year as Chairman of the Board of Directors and Chief Executive Officer of the Company, pursuant to a performance unit award agreement approved in 2008 (the “Performance Unit Award Agreement”). The Performance Unit Award Agreement expires at the end of 2018, with the final potential award to be issued in the first quarter of 2019 in connection with Mr. Harrison’s services during 2018. As permitted under the terms of the Performance Unit Award Agreement, a number of shares were settled in cash in 2018 and 2017 to satisfy tax withholding obligations in connection with the vesting of the performance units. The remaining number of shares increased the total shares of Class B Common Stock outstanding. A summary of the awards issued in 2018 and 2017 is as follows: Fiscal Year 2018 2017 Date of approval for award March 6, 2018 March 7, 2017 Fiscal year of service covered by award 2017 2016 Shares settled in cash to satisfy tax withholding obligations 16,504 18,980 Increase in Class B Common Stock shares outstanding 20,296 21,020 Total Class B Common Stock awarded 36,800 40,000 Compensation expense for the awards issued pursuant to the Performance Unit Award Agreement, recognized on the closing share price of the last trading day prior to the end of the fiscal period, was as follows: First Three Quarters (in thousands, except share price) 2018 2017 Total compensation expense $ 4,494 $ 6,473 Share price for compensation expense $ 182.28 $ 215.75 Share price date for compensation expense September 28, 2018 September 29, 2017 During the second quarter of 2018, the Committee and the Company’s stockholders approved a long-term performance equity plan (the “Long-Term Performance Equity Plan”), which will compensate J. Frank Harrison, III based on the Company’s performance and will succeed the Performance Unit Award Agreement upon its expiration. Awards granted under the Long-Term Performance Equity Plan will be earned based on the Company’s attainment during a performance period of certain performance measures, each as specified by the Committee. These awards may be settled in cash and/or shares of Class B Common Stock, based on the average of the closing prices of shares of Common Stock during the last twenty trading days of the performance period. Compensation expense for the Long-Term Performance Equity Plan, which is included in S,D&A expenses on the consolidated condensed statements of operations, was $1.5 million for the first three quarters of 2018. |
Pension and Postretirement Bene
Pension and Postretirement Benefit Obligations | 9 Months Ended |
Sep. 30, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension and Postretirement Benefit Obligations | 19. Pension and Postretirement Benefit Obligations Pension Plans There are two Company-sponsored pension plans. The primary Company-sponsored pension plan was frozen as of June 30, 2006 and no benefits accrued to participants after this date. The second Company-sponsored pension plan (the “Bargaining Plan”) is for certain employees under collective bargaining agreements. Benefits under the Bargaining Plan are determined in accordance with negotiated formulas for the respective participants. Contributions to the plans are based on actuarially determined amounts and are limited to the amounts currently deductible for income tax purposes. The components of net periodic pension cost were as follows: Third Quarter First Three Quarters (in thousands) 2018 2017 2018 2017 Service cost $ 1,412 $ 150 $ 4,237 $ 450 Interest cost 2,856 2,978 8,568 8,936 Expected return on plan assets (3,853 ) (3,399 ) (11,557 ) (10,197 ) Recognized net actuarial loss 934 807 2,800 2,421 Amortization of prior service cost 6 7 18 21 Net periodic pension cost $ 1,355 $ 543 $ 4,066 $ 1,631 The Company contributed $20.0 million to the two Company sponsored pension plans during the third quarter of 2018 and does not anticipate making additional contributions during the fourth quarter of 2018. Postretirement Benefits The Company provides postretirement benefits for a portion of its current employees. The Company recognizes the cost of postretirement benefits, which consist principally of medical benefits, during covered employees’ periods of active service. The Company does not pre-fund these benefits and has the right to modify or terminate certain of these benefits in the future. The components of net periodic postretirement benefit cost were as follows: Third Quarter First Three Quarters (in thousands) 2018 2017 2018 2017 Service cost $ 502 $ 572 $ 1,507 $ 1,716 Interest cost 696 910 2,088 2,732 Recognized net actuarial loss 499 648 1,497 1,944 Amortization of prior service cost (462 ) (745 ) (1,386 ) (2,237 ) Net periodic postretirement benefit cost $ 1,235 $ 1,385 $ 3,706 $ 4,155 Multi-Employer Benefits Certain employees of the Company whose employment is covered under collective bargaining agreements participate in a multi-employer pension plan, the Employers-Teamsters Local Union Nos. 175 and 505 Pension Fund (the “Teamsters Plan”). The Company makes monthly contributions to the Teamsters Plan on behalf of such employees. The collective bargaining agreements covering the Teamsters Plan expire at various times by April 2020. The Company expects these agreements will be re-negotiated. The risks of participating in the Teamsters Plan are different from single-employer plans as contributed assets are pooled and may be used to provide benefits to employees of other participating employers. If a participating employer stops contributing to the Teamsters Plan, the unfunded obligations of the Teamsters Plan may be borne by the remaining participating employers. If the Company chooses to stop participating in the Teamsters Plan, the Company could be required to pay the Teamsters Plan a withdrawal liability based on the underfunded status of the Teamsters Plan. The Company does not anticipate withdrawing from the Teamsters Plan. In 2015, the Company increased its contribution rates to the Teamsters Plan, with additional increases occurring annually, as part of a rehabilitation plan, which was incorporated into the renewal of collective bargaining agreements with the unions effective April 28, 2014 and adopted by the Company as a rehabilitation plan effective January 1, 2015. This was a result of the Teamsters Plan being certified by its actuary as being in “critical” status for the plan year beginning January 1, 2013. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 20. Related Party Transactions The Coca‑Cola Company The Company’s business consists primarily of the production, marketing and distribution of nonalcoholic beverages of The Coca‑Cola Company, which is the sole owner of the formulas under which the primary components of its soft drink products, either concentrate or syrup, are manufactured. As of September 30, 2018, The Coca‑Cola Company owned approximately 27% of the Company’s total outstanding Common Stock and Class B Common Stock on a consolidated basis, representing approximately 5% of the total voting power of the Company’s Common Stock and Class B Common Stock voting together. As long as The Coca‑Cola Company holds the number of shares of Common Stock it currently owns, it has the right to have a designee proposed by the Company for nomination to the Company’s Board of Directors, and J. Frank Harrison, III, the Chairman of the Board and Chief Executive Officer of the Company, and trustees of certain trusts established for the benefit of certain relatives of J. Frank Harrison, Jr. have agreed to vote the shares of the Company’s Class B Common Stock which they control, representing approximately 86% of the total voting power of the Company’s combined Common Stock and Class B Common Stock, in favor of such designee. The Coca‑Cola Company does not own any shares of the Company’s Class B Common Stock. The following table and the subsequent descriptions summarize the significant transactions between the Company and The Coca‑Cola Company: Third Quarter First Three Quarters (in thousands) 2018 2017 2018 2017 Payments made by the Company to The Coca-Cola Company for: Concentrate, syrup, sweetener and other purchases $ 341,949 $ 317,040 $ 904,244 $ 806,256 Customer marketing programs 34,005 27,855 110,062 102,095 Cold drink equipment parts 7,958 6,881 22,188 18,968 Glacéau distribution agreement consideration - - - 15,598 Payments made by The Coca-Cola Company to the Company for: Proceeds from Territory Conversion Fee $ - $ - $ - $ 87,066 Marketing funding support payments 22,632 22,074 65,325 62,235 Fountain delivery and equipment repair fees 10,199 9,286 29,899 26,138 Facilitating the distribution of certain brands and packages to other Coca-Cola bottlers 1,937 1,773 7,663 6,881 Presence marketing funding support on the Company’s behalf 1,108 2,707 6,203 3,844 Cold drink equipment - - 3,789 8,400 Coca‑Cola Refreshments USA, Inc. The Company previously had a production arrangement with CCR to buy and sell finished products at cost and transported products for CCR to the Company’s and other Coca‑Cola bottlers’ locations. Following the completion of the October 2017 Transactions discussed in Note 3, the Company no longer transacts with CCR other than making quarterly sub-bottling payments, as discussed below. The following table summarizes purchases and sales under these arrangements between the Company and CCR prior to the closing of the October 2017 Transactions: 2017 (in thousands) Third Quarter First Three Quarters Purchases from CCR $ 20,157 $ 110,451 Gross sales to CCR 11,873 72,930 Pursuant to the CBA, the Company is required to make quarterly sub-bottling payments to CCR on a continuing basis for the grant of exclusive rights to distribute, promote, market and sell the authorized brands of The Coca‑Cola Company and related products in the territories acquired in the System Transformation, excluding territories the Company acquired in an exchange transaction. These sub-bottling payments are based on gross profit derived from sales of certain beverages and beverage products that are sold under the same trademarks that identify a covered beverage, beverage product or certain cross-licensed brands. Sub-bottling payments to CCR were $18.3 million during the first three quarters of 2018 and $11.7 million during the first three quarters of 2017. The following table summarizes the liability recorded by the Company to reflect the estimated fair value of contingent consideration related to future sub‑bottling payments to CCR: (in thousands) September 30, 2018 December 31, 2017 Current portion of acquisition related contingent consideration $ 25,306 $ 23,339 Non-current portion of acquisition related contingent consideration 338,530 357,952 Total acquisition related contingent consideration $ 363,836 $ 381,291 Glacéau Distribution Termination Agreement On January 1, 2017, the Company obtained the rights to market, promote, distribute and sell glacéau vitaminwater, glacéau smartwater and glacéau vitaminwater zero drops in certain geographic territories including the District of Columbia and portions of Delaware, Maryland and Virginia, pursuant to an agreement entered into by the Company, The Coca‑Cola Company and CCR in June 2016. Pursuant to the agreement, the Company made a payment of $15.6 million to The Coca‑Cola Company during the first quarter of 2017, which represented a portion of the total payment made by The Coca‑Cola Company to terminate a distribution arrangement with a prior distributor in this territory. Coca‑Cola Bottlers’ Sales and Services Company, LLC (“CCBSS”) Along with all other Coca‑Cola bottlers in the United States, the Company is a member of CCBSS, a company formed in 2003 for the purpose of facilitating various procurement functions and distributing certain specified beverage products of The Coca‑Cola Company with the intention of enhancing the efficiency and competitiveness of the Coca‑Cola bottling system in the United States. CCBSS negotiates the procurement for the majority of the Company’s raw materials, excluding concentrate, and the Company receives a rebate from CCBSS for the purchase of these raw materials. The Company had rebates due from CCBSS of $13.9 million on September 30, 2018 and $11.2 million on December 31, 2017, which were classified as accounts receivable, other in the consolidated condensed balance sheets In addition, the Company pays an administrative fee to CCBSS for its services. The Company incurred administrative fees to CCBSS of $2.2 million in the first three quarters of 2018 and $2.0 million in the first three quarters of 2017, which were classified as S,D&A expenses in the consolidated condensed statements of operations National Product Supply Group (“NPSG”) The Company is a member of the NPSG, an organization comprised of The Coca‑Cola Company and other Coca‑Cola bottlers who are regional producing bottlers (“RPBs”) in The Coca‑Cola Company’s national product supply system, pursuant to a national product supply governance agreement executed in October 2015 with The Coca‑Cola Company and other RPBs (the “NPSG Governance Agreement”). The stated objectives of the NPSG include, among others, (i) Coca‑Cola system strategic infrastructure investment and divestment planning; (ii) network optimization of all plant to distribution center sourcing; and (iii) new product/packaging infrastructure planning. Under the NPSG Governance Agreement, the NPSG members established certain governance mechanisms, including a governing board (the “NPSG Board”) comprised of a representative of (i) the Company, (ii) The Coca‑Cola Company and (iii) each other RPB. As of September 30, 2018, the NPSG Board consisted of The Coca‑Cola Company, the Company and seven other RPBs. The NPSG Board makes and/or oversees and directs certain key decisions regarding the NPSG, including decisions regarding the management and staffing of the NPSG and the funding for its ongoing operations. Pursuant to the decisions of the NPSG Board made from time to time and subject to the terms and conditions of the NPSG Governance Agreement, each RPB is required to make investments in its respective manufacturing assets and implement Coca‑Cola system strategic investment opportunities consistent with the NPSG Governance Agreement. The Company is also obligated to pay a certain portion of the costs of operating the NPSG. The Company incurred NPSG operating costs of $0.9 million in the first three quarters of 2018 and $0.8 million in the first three quarters of 2017, which were classified as S,D&A expense in the consolidated condensed statements of operations CONA Services LLC (“CONA”) The Company is a member of CONA, an entity formed with The Coca‑Cola Company and certain other Coca‑Cola bottlers pursuant to a limited liability company agreement executed in January 2016 (as amended, the “CONA LLC Agreement”) to provide business process and information technology services to its members. Under the CONA LLC Agreement, the business and affairs of CONA are managed by a board of directors comprised of representatives of its members (the “CONA Board”). All directors are entitled to one vote, regardless of the percentage interest in CONA held by each member. The Company currently has the right to designate one of the members of the CONA Board and has a percentage interest in CONA of approximately 20%. Most matters to be decided by the CONA Board require approval by a majority of a quorum of the directors, provided that the approval of 80% of the directors is required to, among other things, require members to make additional capital contributions, approve CONA’s annual operating and capital budgets, and approve capital expenditures in excess of certain agreed upon amounts. Each CONA member is required to make capital contributions to CONA if and when approved by the CONA Board. The Company made capital contributions to CONA of $2.1 million in the first three quarters of 2018 and $2.0 million in the first three quarters of 2017, which were classified as other assets in the consolidated condensed balance sheets. No CONA member may transfer its membership interest (or any portion thereof) except to a purchaser of the member’s bottling business (or any portion thereof) and as permitted under the member’s comprehensive beverage agreement with The Coca‑Cola Company. The CONA LLC Agreement further provides that, if CCR grants any major North American Coca‑Cola bottler other than a CONA member rights to (i) manufacture, produce and package or (ii) market, promote, distribute and sell Coca‑Cola products, CCR will require the bottler to become a CONA member, to implement the CONA System in the bottler’s operations and to enter into a master services agreement with CONA. The Company is also party to an amended and restated master services agreement with CONA (the “CONA MSA”), pursuant to which CONA agreed to make available, and the Company became authorized to use, the Coke One North America system (the “CONA System”), a uniform information technology system developed to promote operational efficiency and uniformity among North American Coca‑Cola bottlers. As part of making the CONA System available, CONA provides the Company with certain business process and information technology services, including the planning, development, management and operation of the CONA System in connection with the Company’s direct store delivery and manufacture of products (collectively, the “CONA Services”). The Company is also authorized under the CONA MSA to use the CONA System in connection with its distribution, promotion, marketing, sale and manufacture of beverages it is authorized to distribute or manufacture under the CBA, the Company’s regional manufacturing agreement or any other agreement with The Coca‑Cola Company, subject to the provisions of the CONA LLC Agreement and any licenses or other agreements relating to products or services provided by third parties and used in connection with the CONA System. In exchange for the Company’s rights to use the CONA System and receive the CONA Services under the CONA MSA, it is charged service fees by CONA. Currently, the service fees are based on the number of physical cases of beverages the Company distributed or manufactured during the applicable period in the portion of its territories where the CONA Services have then been implemented. Upon the earlier of (i) all members of CONA beginning to use the CONA System in all territories in which they distribute and manufacture Coca‑Cola products (excluding certain territories of CCR that are expected to be sold to bottlers that are neither members of CONA nor users of the CONA System), or (ii) December 31, 2018, the service fees will be changed to be an amount per physical case of beverages distributed or manufactured in any portion of the Company’s territories equal to the aggregate costs incurred by CONA to maintain and operate the CONA System and provide the CONA Services divided by the total number of cases distributed or manufactured by all of the members of CONA, subject to certain exceptions and provided that the aggregate costs related to CONA’s manufacturing functionality will be borne solely amongst the CONA members who have rights to manufacture beverages of The Coca‑Cola Company. The Company is obligated to pay the service fees under the CONA MSA even if it is not using the CONA System for all or any portion of its distribution and manufacturing operations. The Company incurred CONA services fees of $15.5 million in the first three quarters of 2018 and $9.2 million in the first three quarters of 2017. Related Party Leases The Company leases its headquarters office facility and an adjacent office facility in Charlotte, North Carolina from Beacon Investment Corporation, of which J. Frank Harrison, III is the majority stockholder and Morgan H. Everett is a minority stockholder. The annual base rent the Company is obligated to pay under this lease agreement is subject to adjustment for increases in the Consumer Price Index and the lease expires on December 31, 2021. The Company leases the Snyder Production Center and an adjacent sales facility in Charlotte, North Carolina from Harrison Limited Partnership One, which is directly and indirectly owned by trusts of which J. Frank Harrison, III, Chairman of the Board of Directors and Chief Executive Officer of the Company, and Sue Anne H. Wells, a director of the Company, are trustees and beneficiaries and of which Morgan H. Everett, Vice President and a director of the Company, is a permissible, discretionary beneficiary. The annual base rent the Company is obligated to pay under this lease agreement is subject to an adjustment for an inflation factor and the lease expires on December 31, 2020. A summary of the principal balance outstanding under these related party capital leases is as follows: (in thousands) September 30, 2018 December 31, 2017 Company headquarters $ 10,597 $ 12,771 Snyder Production Center 9,033 11,612 A summary of rental payments related to these capital leases is as follows: Third Quarter First Three Quarters (in thousands) 2018 2017 2018 2017 Company headquarters $ 1,110 $ 1,091 $ 3,346 $ 3,294 Snyder Production Center 1,049 1,018 3,147 3,055 |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 21. Net Income Per Share The following table sets forth the computation of basic net income per share and diluted net income per share under the two-class method: Third Quarter First Three Quarters (in thousands, except per share data) 2018 2017 2018 2017 Numerator for basic and diluted net income per Common Stock and Class B Common Stock share: Net income attributable to Coca-Cola Bottling Co. Consolidated $ 25,164 $ 17,316 $ 7,046 $ 18,613 Less dividends: Common Stock 1,787 1,785 5,357 5,356 Class B Common Stock 556 548 1,657 1,639 Total undistributed earnings $ 22,821 $ 14,983 $ 32 $ 11,618 Common Stock undistributed earnings – basic $ 17,422 $ 11,463 24 $ 8,893 Class B Common Stock undistributed earnings – basic 5,399 3,520 8 2,725 Total undistributed earnings – basic $ 22,821 $ 14,983 $ 32 $ 11,618 Common Stock undistributed earnings – diluted $ 17,327 $ 11,414 24 $ 8,855 Class B Common Stock undistributed earnings – diluted 5,494 3,569 8 2,763 Total undistributed earnings – diluted $ 22,821 $ 14,983 $ 32 $ 11,618 Numerator for basic net income per Common Stock share: Dividends on Common Stock $ 1,787 $ 1,785 $ 5,357 $ 5,356 Common Stock undistributed earnings – basic 17,422 11,463 24 8,893 Numerator for basic net income per Common Stock share $ 19,209 $ 13,248 $ 5,381 $ 14,249 Numerator for basic net income per Class B Common Stock share: Dividends on Class B Common Stock $ 556 $ 548 $ 1,657 $ 1,639 Class B Common Stock undistributed earnings – basic 5,399 3,520 8 2,725 Numerator for basic net income per Class B Common Stock share $ 5,955 $ 4,068 $ 1,665 $ 4,364 Numerator for diluted net income per Common Stock share: Dividends on Common Stock $ 1,787 $ 1,785 $ 5,357 $ 5,356 Dividends on Class B Common Stock assumed converted to Common Stock 556 548 1,657 1,639 Common Stock undistributed earnings – diluted 22,821 14,983 32 11,618 Numerator for diluted net income per Common Stock share $ 25,164 $ 17,316 $ 7,046 $ 18,613 Numerator for diluted net income per Class B Common Stock share: Dividends on Class B Common Stock $ 556 $ 548 $ 1,657 $ 1,639 Class B Common Stock undistributed earnings – diluted 5,494 3,569 8 2,763 Numerator for diluted net income per Class B Common Stock share $ 6,050 $ 4,117 $ 1,665 $ 4,402 Third Quarter First Three Quarters (in thousands, except per share data) 2018 2017 2018 2017 Denominator for basic net income per Common Stock and Class B Common Stock share: Common Stock weighted average shares outstanding – basic 7,141 7,141 7,141 7,141 Class B Common Stock weighted average shares outstanding – basic 2,213 2,193 2,208 2,188 Denominator for diluted net income per Common Stock and Class B Common Stock share: Common Stock weighted average shares outstanding – diluted (assumes conversion of Class B Common Stock to Common Stock) 9,405 9,374 9,400 9,369 Class B Common Stock weighted average shares outstanding – diluted 2,264 2,233 2,259 2,228 Basic net income per share: Common Stock $ 2.69 $ 1.86 $ 0.75 $ 2.00 Class B Common Stock $ 2.69 $ 1.86 $ 0.75 $ 2.00 Diluted net income per share: Common Stock $ 2.69 $ 1.85 $ 0.75 $ 1.99 Class B Common Stock $ 2.68 $ 1.84 $ 0.74 $ 1.97 NOTES TO TABLE (1) For purposes of the diluted net income per share computation for Common Stock, all shares of Class B Common Stock are assumed to be converted; therefore, 100% of undistributed earnings is allocated to Common Stock. (2) For purposes of the diluted net income per share computation for Class B Common Stock, weighted average shares of Class B Common Stock are assumed to be outstanding for the entire period and not converted. (3) The denominator for diluted net income per share for Common Stock and Class B Common Stock includes the dilutive effect of shares relative to the Performance Unit Award Agreement. (4) The Company does not have anti-dilutive shares. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 9 Months Ended |
Sep. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures of Cash Flow Information | 22. Supplemental Disclosures of Cash Flow Information Changes in current assets and current liabilities affecting cash flows were as follows: First Three Quarters (in thousands) 2018 2017 Accounts receivable, trade, net $ (34,899 ) $ (109,023 ) Accounts receivable from The Coca-Cola Company (2,083 ) 1,548 Accounts receivable, other 10,328 (8,308 ) Inventories (46,274 ) (19,254 ) Prepaid expenses and other current assets 8,951 (281 ) Accounts payable, trade 3,749 67,058 Accounts payable to The Coca-Cola Company (15,222 ) 45,722 Other accrued liabilities (33,712 ) 7,924 Accrued compensation (15,496 ) (10,062 ) Accrued interest payable 4,237 5,640 Change in current assets less current liabilities (exclusive of acquisitions) $ (120,421 ) $ (19,036 ) |
Segments
Segments | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segments | 23. Segments The Company evaluates segment reporting in accordance with the FASB Accounting Standards Codification 280, Segment Reporting, each reporting period, including evaluating the reporting package reviewed by the Chief Operation Decision Maker (“CODM”). The Company has concluded the Chief Executive Officer, Chief Operating Officer and Chief Financial Officer, as a group, represent the CODM . In conjunction with the completion of the System Transformation Transactions in October 2017 and integration of acquired operations, management continues to assess whether changes are necessary to the Company’s reportable segments. The Company believes four operating segments exist. Nonalcoholic Beverages represents the vast majority of the Company’s consolidated revenues, income from operations and assets. The additional three operating segments do not meet the quantitative thresholds for separate reporting, either individually or in the aggregate, and therefore have been combined into “All Other.” The Company’s segment results are as follows: Third Quarter First Three Quarters (in thousands) 2018 2017 2018 2017 Net sales: Nonalcoholic Beverages (1) $ 1,180,212 $ 1,142,238 $ 3,427,492 $ 3,139,974 All Other (1) 93,493 81,439 273,490 220,734 Eliminations (2) (62,044 ) (61,151 ) (189,985 ) (163,189 ) Consolidated net sales $ 1,211,661 $ 1,162,526 $ 3,510,997 $ 3,197,519 Income from operations: Nonalcoholic Beverages $ 39,361 $ 33,867 $ 32,705 $ 90,254 All Other 5,043 3,605 12,381 10,823 Consolidated income from operations $ 44,404 $ 37,472 $ 45,086 $ 101,077 Depreciation and amortization: Nonalcoholic Beverages $ 44,050 $ 41,151 $ 133,095 $ 114,166 All Other 2,539 2,095 7,401 6,127 Consolidated depreciation and amortization $ 46,589 $ 43,246 $ 140,496 $ 120,293 (1) In order to correct an error in the prior year segment presentation, the Company revised net sales by $39.2 million for the third quarter of 2017 and $96.4 million for the first three quarters of 2017 to reflect sales in the Nonalcoholic Beverages segment which were previously attributed to All Other. Total net sales remain unchanged in prior periods and these revisions were not considered material to the prior periods presented. (2) The entire net sales elimination for each period presented represents net sales from All Other to the Nonalcoholic Beverages segment. Sales between these segments are recognized at either fair market value or cost depending on the nature of the transaction. |
Significant Accounting Polici_2
Significant Accounting Policies and New Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies In the ordinary course of business, the Company has made a number of estimates and assumptions relating to the reporting of results of operations and financial position in the preparation of its consolidated condensed financial statements in conformity with GAAP. Actual results could differ significantly from those estimates under different assumptions and conditions. The Company included in its Annual Report on Form 10‑K for 2017 under the caption “Discussion of Critical Accounting Policies, Estimates and New Accounting Pronouncements” in Part II, “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations,” a discussion of the Company’s most critical accounting policies, which are those the Company believes to be the most important to the portrayal of its financial condition and results of operations and require management’s most difficult, subjective and complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Any changes in critical accounting policies and estimates are discussed with the Audit Committee of the Board of Directors of the Company during the quarter in which a change is contemplated and prior to making such change. |
Recently Adopted Pronouncements | Recently Adopted Pronouncements In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2014-09 “Revenue from Contracts with Customers,” (the “revenue recognition standard”). Subsequent to the issuance of ASU 2014‑09, the FASB issued several additional accounting standards for revenue recognition to update the effective date of the revenue recognition guidance and to provide additional clarification on the updated standard. The new guidance is effective for annual and interim periods beginning after December 15, 2017. The Company adopted the revenue recognition standard in the first quarter of 2018, as discussed in Note 2. In January 2016, the FASB issued ASU 2016-01 “Recognition and Measurement of Financial Assets and Financial Liabilities,” which revises the classification and measurement of investments in equity securities and the presentation of certain fair value changes in financial liabilities measured at fair value. The new guidance is effective for annual and interim periods beginning after December 31, 2017. The Company adopted this guidance in the first quarter of 2018 and there was no material impact to the Company’s consolidated condensed financial statements. In January 2017, the FASB issued ASU 2017-01 “Clarifying the Definition of a Business,” which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The new guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. . In January 2017, the FASB issued ASU 2017-04 “Simplifying the Test for Goodwill Impairment,” which The new guidance is effective for the annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. In March 2017, the FASB issued ASU 2017‑07 “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which requires that the service cost component of the Company’s net periodic pension cost and net periodic postretirement benefit cost be included in the same line item as other compensation costs arising from services rendered by employees, with the non-service cost components of net periodic benefit cost being classified outside of a subtotal of income from operations. Of the components of net periodic benefit cost, only the service cost component is eligible for asset capitalization. The new guidance is effective for annual periods beginning after December 31, 2017, including interim periods within those annual periods. The Company using the practical expedient which allows entities to use information previously disclosed in their pension and other postretirement benefit plans note as the estimation basis to apply the retrospective presentation requirements in ASU 2017-07. With the adoption of this guidance in the first quarter of 2018, the Company recorded the non-service cost component of net periodic benefit cost, which totaled $0.6 million in the third quarter of 2018 and $2.0 million in the first three quarters of 2018, to other income (expense), net in the consolidated condensed statements of operations. The Company reclassified $1.3 million from the third quarter of 2017 and $4.0 million from the first three quarters of 2017 of non-service cost components of net periodic benefit cost and other benefit plan charges from selling, delivery and administrative (“S,D&A”) expenses to other income (expense), net in the consolidated condensed statements of operations. The non-service cost component of net periodic benefit cost is included in the Nonalcoholic Beverages segment. |
Recently Issued Pronouncements | Recently Issued Pronouncements In February 2018, the FASB issued ASU 2018‑02 “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which provides the option to reclassify stranded tax effects resulting from the Tax Cuts and Jobs Act (the “Tax Act”) from accumulated other comprehensive income to retained earnings. The new guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and can be early adopted. The Company is currently evaluating whether it will adopt this guidance. In February 2016, the FASB issued ASU 2016-02 “Leases,” which requires lessees to recognize a right-to-use asset and a lease liability for virtually all leases (other than leases meeting the definition of a short-term lease). The new guidance is effective for fiscal years beginning after December 15, 2018 and interim periods beginning the following fiscal year. The Company anticipates adopting the new accounting standard on December 31, 2018, the first day of fiscal 2019, using the optional transition method, which was approved by the FASB in March 2018 and allows companies the option to use the effective date as the date of initial application on transition and to not adjust comparative period financial information or make the new required disclosures for periods prior to the effective date. The Company has formed a project team, which is in the process of reviewing its existing lease portfolio, including certain service contracts for embedded leases, to determine the size of the Company’s lease portfolio in order to evaluate the impact of this new guidance on the Company’s consolidated condensed financial statements. The Company anticipates the impact of adopting this new guidance will be material to its consolidated condensed balance sheets. The impact on the Company’s consolidated condensed statements of operations is still being evaluated. As the impact of the new guidance is non-cash in nature, the Company does not anticipate the impact of adopting this new guidance will be material to its consolidated condensed statements of cash flows. Additionally, the Company is evaluating the impacts of ASU 2016‑02 beyond accounting, including system, data and process changes required to comply with this standard. The Company anticipates implementing new controls and utilizing a lease accounting software application with the adoption of this new guidance and on a go-forward basis in order to properly approve, track and account for its entire lease portfolio. |
Revenue Recognition | Revenue Recognition The Company adopted the revenue recognition standard, including all relevant amendments and practical expedients, in the first quarter of 2018 using the modified retrospective approach for all contracts not completed at the date of initial adoption, considering materiality and applicability. Upon adoption of this guidance, there was no material impact to the Company’s consolidated condensed financial statements. T he Company’s contracts are derived from customer orders, including customer sales incentives, generated through an order processing and replenishment model. erformance obligations for its contracts as either at a point in time or over time. The Company offers a range of nonalcoholic beverage products and flavors designed to meet the demands of its consumers, including both sparkling and still beverages. Sparkling beverages are carbonated beverages and the Company’s principal sparkling beverage is Coca‑Cola. Still beverages include energy products and noncarbonated beverages such as bottled water, tea, ready to drink coffee, enhanced water, juices and sports drinks. The Company’s products are sold and distributed through various channels, which include selling directly to retail stores and other outlets such as food markets, institutional accounts and vending machine outlets. During the first three quarters of 2018, approximately 66% of the Company’s bottle/can sales volume to retail customers was sold for future consumption, while the remaining bottle/can sales volume to retail customers was sold for immediate consumption. All the Company’s beverage sales were to customers in the United States. The Company typically collects payment from customers within 30 days from the date of sale. The Company’s sales are divided into two main categories: (i) bottle/can sales and (ii) other sales. Bottle/can sales include products packaged primarily in plastic bottles and aluminum cans. Other sales include sales to other Coca‑Cola bottlers, “post-mix” products, transportation and equipment maintenance revenue. Post-mix products are dispensed through equipment that mixes fountain syrups with carbonated or still water, enabling fountain retailers to sell finished products to consumers in cups or glasses. Net sales by category were as follows: Third Quarter First Three Quarters (in thousands) 2018 2017 2018 2017 Bottle/can sales: Sparkling beverages (carbonated) $ 605,614 $ 582,710 $ 1,787,451 $ 1,670,093 Still beverages (noncarbonated, including energy products) 413,282 384,495 1,142,764 1,009,508 Total bottle/can sales 1,018,896 967,205 2,930,215 2,679,601 Other sales: Sales to other Coca-Cola bottlers 92,139 104,619 300,819 274,317 Post-mix and other 100,626 90,702 279,963 243,601 Total other sales 192,765 195,321 580,782 517,918 Total net sales $ 1,211,661 $ 1,162,526 $ 3,510,997 $ 3,197,519 Bottle/can sales represented approximately 83% and 84% in the first three quarters of 2018 and the first three quarters of 2017, respectively. The sparkling beverage category represented approximately 61% and 62% of total bottle/can sales during the first three quarters of 2018 and the first three quarters of 2017, respectively. Bottle/can sales, sales to other Coca‑Cola bottlers and post-mix sales are recognized when control transfers to a customer, which is generally upon delivery and is considered a single point in time (“point in time”). Point in time sales accounted for approximately 97% of the Company’s net sales in both the first three quarters of 2018 and the first three quarters of 2017. Substantially all of the Company’s revenue is recognized at a point in time and is included in the Nonalcoholic Beverages segment. Other sales, which include revenue for service fees related to the repair of cold drink equipment and delivery fees for freight hauling and brokerage services, are recognized over time (“over time”). Revenues related to cold drink equipment repair are recognized as the respective services are completed using a cost-to-cost input method. Repair services are generally completed in less than one day but can extend up to one month. Revenues related to freight hauling and brokerage services are recognized as the delivery occurs using a miles driven output method. Generally, delivery occurs and freight charges are recognized in the same day. Over time sales orders open at the end of a financial period are not considered material to the Company’s consolidated condensed financial statements. The Company participates in various sales programs with The Coca‑Cola Company, other beverage companies and customers to increase the sale of its products. Programs negotiated with customers include arrangements under which allowances can be earned for attaining agreed-upon sales levels. The cost of these various sales incentives are not considered a separate performance obligation and are included as deductions to net sales. Revenues do not include sales or other taxes collected from customers. The majority of the Company’s contracts include multiple performance obligations related to the delivery of specifically identifiable products, which generally have a duration of less than one year. For sales contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation using stated contractual price, which represents the standalone selling price of each distinct good sold under the contract. Generally, the Company’s service contracts have a single performance obligation. The following table represents a disaggregation of revenue from contracts with customers: Third Quarter First Three Quarters (in thousands) 2018 2017 2018 2017 Point in time net sales: Nonalcoholic - point in time $ 1,168,276 $ 1,132,181 $ 3,394,253 $ 3,112,777 Total point in time net sales $ 1,168,276 $ 1,132,181 $ 3,394,253 $ 3,112,777 Over time net sales: Nonalcoholic - over time $ 11,936 $ 10,057 $ 33,239 $ 27,197 Other - over time 31,449 20,288 83,505 57,545 Total over time net sales $ 43,385 $ 30,345 $ 116,744 $ 84,742 Total net sales $ 1,211,661 $ 1,162,526 $ 3,510,997 $ 3,197,519 The Company sells its products and extends credit, generally without requiring collateral, based on an ongoing evaluation of the customer’s business prospects and financial condition. The Company evaluates the collectability of its trade accounts receivable based on a number of factors, including the Company’s historic collections pattern and changes to a specific customer’s ability to meet its financial obligations. The Company has established an allowance for doubtful accounts to adjust the recorded receivable to the estimated amount the Company believes will ultimately be collected. The nature of the Company’s contracts gives rise to several types of variable consideration, including prospective and retrospective rebates. The Company accounts for its prospective and retrospective rebates using the expected value method, which estimates the net price to the customer based on the customer’s expected annual sales volume projections. The Company experiences customer returns primarily as a result of damaged or out-of-date product. At any given time, the Company estimates less than 1% of bottle/can sales and post-mix sales could be at risk for return by customers. The Company’s reserve for customer returns was $2.3 million as of September 30, 2018 and was included in the allowance for doubtful accounts in the consolidated condensed balance sheet |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Net Sales By Category | The Company’s sales are divided into two main categories: (i) bottle/can sales and (ii) other sales. Bottle/can sales include products packaged primarily in plastic bottles and aluminum cans. Other sales include sales to other Coca‑Cola bottlers, “post-mix” products, transportation and equipment maintenance revenue. Post-mix products are dispensed through equipment that mixes fountain syrups with carbonated or still water, enabling fountain retailers to sell finished products to consumers in cups or glasses. Net sales by category were as follows: Third Quarter First Three Quarters (in thousands) 2018 2017 2018 2017 Bottle/can sales: Sparkling beverages (carbonated) $ 605,614 $ 582,710 $ 1,787,451 $ 1,670,093 Still beverages (noncarbonated, including energy products) 413,282 384,495 1,142,764 1,009,508 Total bottle/can sales 1,018,896 967,205 2,930,215 2,679,601 Other sales: Sales to other Coca-Cola bottlers 92,139 104,619 300,819 274,317 Post-mix and other 100,626 90,702 279,963 243,601 Total other sales 192,765 195,321 580,782 517,918 Total net sales $ 1,211,661 $ 1,162,526 $ 3,510,997 $ 3,197,519 |
Disaggregation of Revenue from Contracts with Customers | The following table represents a disaggregation of revenue from contracts with customers: Third Quarter First Three Quarters (in thousands) 2018 2017 2018 2017 Point in time net sales: Nonalcoholic - point in time $ 1,168,276 $ 1,132,181 $ 3,394,253 $ 3,112,777 Total point in time net sales $ 1,168,276 $ 1,132,181 $ 3,394,253 $ 3,112,777 Over time net sales: Nonalcoholic - over time $ 11,936 $ 10,057 $ 33,239 $ 27,197 Other - over time 31,449 20,288 83,505 57,545 Total over time net sales $ 43,385 $ 30,345 $ 116,744 $ 84,742 Total net sales $ 1,211,661 $ 1,162,526 $ 3,510,997 $ 3,197,519 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Summary of Carrying Value of Assets and Liabilities of Divestitures | The carrying value of assets and liabilities divested in the October 2017 Divestitures is summarized as follows: (in thousands) October 2017 Divestitures Cash $ 303 Inventories 13,717 Prepaid expenses and other current assets 1,199 Property, plant and equipment 44,380 Other assets (including deferred taxes) 604 Goodwill 13,073 Distribution agreements 65,043 Total divested assets $ 138,319 Other current liabilities $ 5,683 Pension and postretirement benefit obligation 16,855 Total divested liabilities $ 22,538 |
2017 Acquisition [Member] | |
Summary of Fair Values of Acquired Assets and Assumed Liabilities as of Acquisition Date | The fair value of acquired assets and assumed liabilities of the System Transformation Transactions that closed during 2017 (the “2017 System Transformation Transactions”), as of the acquisition dates, is summarized as follows: (in thousands) January 2017 Transaction March 2017 Transactions April 2017 Transactions October 2017 Acquisitions Total 2017 System Transformation Transactions Acquisitions Cash $ 107 $ 211 $ 103 $ 191 $ 612 Inventories 5,953 20,952 14,554 14,850 56,309 Prepaid expenses and other current assets 1,155 5,117 4,068 4,573 14,913 Accounts receivable from The Coca-Cola Company 1,042 1,807 2,552 1,447 6,848 Property, plant and equipment 25,708 81,638 52,263 71,589 231,198 Other assets (including deferred taxes) 1,158 3,227 3,960 1,300 9,645 Goodwill 1,544 2,527 16,941 11,442 32,454 Distribution agreements 22,000 46,750 19,500 129,450 217,700 Customer lists 1,500 1,750 1,000 4,950 9,200 Total acquired assets $ 60,167 $ 163,979 $ 114,941 $ 239,792 $ 578,879 Current liabilities (acquisition related contingent consideration) $ 1,350 $ 2,958 $ 1,475 $ 1,501 $ 7,284 Other current liabilities 324 3,760 2,860 8,311 15,255 Other liabilities (acquisition related contingent consideration) 26,377 49,739 25,616 20,676 122,408 Other liabilities 43 2,953 1,792 102 4,890 Total assumed liabilities $ 28,094 $ 59,410 $ 31,743 $ 30,590 $ 149,837 |
Schedule Of Condensed Consolidated Statement of Operations | The financial results of the System Transformation Transactions have been included in the Company’s consolidated condensed financial statements from their respective acquisition or exchange dates. Net sales and income from operations for certain territories and regional manufacturing facilities acquired and divested by the Company during 2017 are impracticable to separately calculate, as the operations were absorbed into territories and facilities owned by the Company prior to the System Transformation, and therefore have been omitted from the results below. Omission of net sales and income from operations for such territories and facilities is not considered material to the results presented below. The remaining 2017 System Transformation Transactions contributed the following amounts to the Company’s consolidated condensed statements of operations: Third Quarter First Three Quarters (in thousands) 2018 2017 2018 2017 Impact to net sales - total 2017 System Transformation Transactions acquisitions $ 308,825 $ 221,034 $ 896,179 $ 454,174 Impact to net sales - October 2017 Divestitures - 79,032 - 231,301 Total impact to net sales $ 308,825 $ 300,066 $ 896,179 $ 685,475 Impact to income from operations - total 2017 System Transformation Transactions acquisitions $ 11,874 $ 3,176 $ 14,635 $ 13,595 Impact to income from operations - October 2017 Divestitures - 7,689 - 22,973 Total impact to income from operations $ 11,874 $ 10,865 $ 14,635 $ 36,568 |
Schedule of Unaudited Pro Forma Information | The following table represents the Company’s unaudited pro forma net sales and unaudited pro forma income from operations for the 2017 System Transformation Transactions. Third Quarter 2017 First Three Quarters 2017 (in thousands) Net Sales Income from Operations Net Sales Income from Operations Balance as reported $ 1,162,526 $ 37,472 $ 3,197,519 $ 101,077 Pro forma adjustments (unaudited) 1,754 55 231,183 4,262 Balance including pro forma adjustments (unaudited) $ 1,164,280 $ 37,527 $ 3,428,702 $ 105,339 |
October 2017 Acquisitions [Member] | |
Summary of Fair Values of Acquired Assets and Assumed Liabilities as of Acquisition Date | The fair value of acquired assets and assumed liabilities in the October 2017 Acquisitions as of the acquisition date is summarized as follows: (in thousands) CCR Exchange Business Memphis Territory United Exchange Business Total October 2017 Acquisitions Cash $ 91 $ 100 $ - $ 191 Inventories 10,667 3,354 829 14,850 Prepaid expenses and other current assets 3,172 1,087 314 4,573 Accounts receivable from The Coca-Cola Company 674 563 210 1,447 Property, plant and equipment 47,484 21,321 2,784 71,589 Other assets (including deferred taxes) 753 547 - 1,300 Goodwill 3,546 5,199 2,697 11,442 Distribution agreements 80,100 35,400 13,950 129,450 Customer lists 3,200 1,200 550 4,950 Total acquired assets $ 149,687 $ 68,771 $ 21,334 $ 239,792 Current liabilities (acquisition related contingent consideration) $ - $ 1,501 $ - $ 1,501 Other current liabilities 3,497 4,323 491 8,311 Other liabilities (acquisition related contingent consideration) - 20,676 - 20,676 Other liabilities 15 87 - 102 Total assumed liabilities $ 3,512 $ 26,587 $ 491 $ 30,590 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consisted of the following: (in thousands) September 30, 2018 December 31, 2017 Finished products $ 156,669 $ 116,354 Manufacturing materials 35,703 33,073 Plastic shells, plastic pallets and other inventories 37,520 34,191 Total inventories $ 229,892 $ 183,618 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Prepaid Expense And Other Assets [Abstract] | |
Summary of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following: (in thousands) September 30, 2018 December 31, 2017 Repair parts $ 29,535 $ 30,530 Current portion of income taxes 22,896 35,930 Prepaid software 5,786 5,855 Prepayments for sponsorship contracts 5,644 6,358 Commodity hedges at fair market value 1,047 4,420 Other prepaid expenses and other current assets 26,606 17,553 Total prepaid expenses and other current assets $ 91,514 $ 100,646 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Property Plant And Equipment [Abstract] | |
Principal Categories and Estimated Useful Lives of Property, Plant and Equipment, Net | The principal categories and estimated useful lives of property, plant and equipment, net were as follows: (in thousands) September 30, 2018 December 31, 2017 Estimated Useful Lives Land $ 78,478 $ 78,825 Buildings 216,821 211,308 8-50 years Machinery and equipment 320,447 315,117 5-20 years Transportation equipment 373,426 351,479 4-20 years Furniture and fixtures 92,000 89,559 3-10 years Cold drink dispensing equipment 497,008 488,208 5-17 years Leasehold and land improvements 130,257 125,348 5-20 years Software for internal use 120,767 113,490 3-10 years Construction in progress 13,524 25,490 Total property, plant and equipment, at cost 1,842,728 1,798,824 Less: Accumulated depreciation and amortization 844,611 767,436 Property, plant and equipment, net $ 998,117 $ 1,031,388 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Reconciliation of Activity for Goodwill | A reconciliation of the activity for goodwill for the first three quarters of 2018 and the first three quarters of 2017 is as follows: First Three Quarters (in thousands) 2018 2017 Beginning balance - goodwill $ 169,316 $ 144,586 System Transformation Transactions acquisitions - 19,035 Measurement period adjustments (1) (3,413 ) 1,807 Balance held for sale (2) - (12,727 ) Ending balance - goodwill $ 165,903 $ 152,701 (1) (2) Goodwill of $12.7 million related to the October 2017 Divestitures was classified as held for sale as of October 1, 2017. |
Distribution Agreements, Net (T
Distribution Agreements, Net (Tables) - Distribution Agreements [Member] | 9 Months Ended |
Sep. 30, 2018 | |
Other Identifiable Intangible Assets Net | Distribution agreements, net, which are amortized on a straight line basis and have an estimated useful life of 20 to 40 years, consisted of the following: (in thousands) September 30, 2018 December 31, 2017 Distribution agreements at cost $ 945,895 $ 939,527 Less: Accumulated amortization (44,064 ) (26,175 ) Distribution agreements, net $ 901,831 $ 913,352 |
Reconciliation of Activity for Other Identifiable Intangible Assets Net | A reconciliation of the activity for distribution agreements, net for the first three quarters of 2018 and the first three quarters of 2017 is as follows: First Three Quarters (in thousands) 2018 2017 Beginning balance - distribution agreements, net $ 913,352 $ 234,988 Conversion to distribution rights from franchise rights (1) - 533,040 System Transformation Transactions acquisitions - 36,800 Measurement period adjustment (2) 4,700 - Other distribution agreements 1,668 44 Additional accumulated amortization (17,889 ) (11,774 ) Balance held for sale (3) - (63,321 ) Ending balance - distribution agreements, net $ 901,831 $ 729,777 (1) In connection with the closing of the March 2017 Transactions, the Company, The Coca-Cola Company and CCR entered into a comprehensive beverage agreement (as amended, the “CBA”) on March 31, 2017, and concurrently converted the Company’s franchise rights within the territories in which the Company distributed Coca‑Cola products prior to beginning the System Transformation to distribution agreements, net on the consolidated condensed financial statements. Prior to this conversion, the Company’s franchise rights resided entirely within the Nonalcoholic Beverages segment. (2) Measurement period adjustment relates to post-closing adjustments made in relation to the Memphis Transaction in accordance with the terms and conditions of the September 2017 APA. The adjustment to amortization expense associated with this measurement period adjustment was not material to the consolidated condensed financial statements. See Note 3 to the consolidated condensed financial statements for additional information on the System Transformation Transactions. (3) Distribution agreements, net of $63.3 million related to the was classified as held for sale as of October 1, 2017. |
Customer Lists and Other Iden_2
Customer Lists and Other Identifiable Intangible Assets, Net (Tables) - Customer Lists and Other Identifiable Intangible Assets [Member] | 9 Months Ended |
Sep. 30, 2018 | |
Other Identifiable Intangible Assets Net | Customer lists and other identifiable intangible assets, net, which are amortized on a straight line basis and have an estimated useful life of 12 to 20 years, consisted of the following: (in thousands) September 30, 2018 December 31, 2017 Customer lists and other identifiable intangible assets at cost $ 25,288 $ 25,288 Less: Accumulated amortization (8,347 ) (6,968 ) Customer lists and other identifiable intangible assets, net $ 16,941 $ 18,320 |
Reconciliation of Activity for Other Identifiable Intangible Assets Net | A reconciliation of the activity for customer lists and other identifiable intangible assets, net for the first three quarters of 2018 and the first three quarters of 2017 is as follows: First Three Quarters (in thousands) 2018 2017 Beginning balance - customer lists and other identifiable intangible assets, net $ 18,320 $ 10,427 System Transformation Transactions acquisitions - 3,800 Additional accumulated amortization (1,379 ) (965 ) Ending balance - customer lists and other identifiable intangible assets, net $ 16,941 $ 13,262 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Payables And Accruals [Abstract] | |
Summary of Other Accrued Liabilities | Other accrued liabilities consisted of the following: (in thousands) September 30, 2018 December 31, 2017 Accrued insurance costs $ 39,299 $ 35,433 Employee and retiree benefit plan accruals 25,950 27,024 Accrued marketing costs 25,875 33,376 Current portion of acquisition related contingent consideration 25,306 23,339 Checks and transfers yet to be presented for payment from zero balance cash accounts 11,900 37,262 Accrued taxes (other than income taxes) 5,811 6,391 Current deferred proceeds from Territory Conversion Fee (1) 2,286 2,286 All other accrued expenses 17,182 20,419 Total other accrued liabilities $ 153,609 $ 185,530 (1) Pursuant to a territory conversion agreement entered into by the Company, The Coca‑Cola Company and CCR in September 2015 (as amended), upon the conversion of the Company’s then-existing bottling agreements to the CBA on March 31, 2017, the Company received a one-time fee from CCR, which, after final adjustments made during the second quarter of 2017, totaled $91.5 million (the “Territory Conversion Fee”). The Territory Conversion Fee was recorded as a deferred liability and will be amortized as a reduction to cost of sales over a period of 40 years. The portion of the deferred liability that is expected to be amortized in the next twelve months was classified as current. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Debt | Following is a summary of the Company’s debt: (in thousands) Maturity Date Interest Rate Interest Paid Public / Non-public September 30, 2018 December 31, 2017 Senior Notes (1) 4/15/2019 7.00% Semi-annually Public $ 110,000 $ 110,000 Term Loan Facility (1) 6/7/2021 Variable Varies Non-public 292,500 300,000 Senior Notes 2/27/2023 3.28% Semi-annually Non-public 125,000 125,000 Revolving Credit Facility 6/8/2023 Variable Varies Non-public 170,000 207,000 Senior Notes 11/25/2025 3.80% Semi-annually Public 350,000 350,000 Senior Notes 3/21/2030 3.96% Quarterly Non-public 150,000 - Unamortized discount on Senior Notes 4/15/2019 (143 ) (332 ) Unamortized discount on Senior Notes 11/25/2025 (63 ) (70 ) Debt issuance costs (3,185 ) (3,580 ) Total debt 1,194,109 1,088,018 Less: Current portion of debt - - Long-term debt $ 1,194,109 $ 1,088,018 (1) Pursuant to the Company’s Term Loan Facility (as defined below) and the indenture under which the senior notes due in 2019 were issued, principal payments will be due in the next twelve months. The Company intends to refinance these amounts and has the capacity to do so under its Revolving Credit Facility (as defined below), which is classified as long-term debt. As such, any amounts due in the next twelve months were classified as non-current. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of Pre-Tax Changes in Fair Value | The following table summarizes pre-tax changes in the fair value of the Company’s commodity derivative financial instruments and the classification of such changes in the consolidated condensed statements of operations. Third Quarter First Three Quarters (in thousands) Classification of Gain (Loss) 2018 2017 2018 2017 Commodity hedges Cost of sales $ (260 ) $ 2,042 $ (2,776 ) $ 2,066 Commodity hedges Selling, delivery and administrative expenses (209 ) 1,359 (363 ) 475 Total gain (loss) $ (469 ) $ 3,401 $ (3,139 ) $ 2,541 |
Summary of Fair Values and Classification in Consolidated Condensed Balance Sheets of Derivative Instruments | The following table summarizes the fair values and classification in the consolidated condensed balance sheets of derivative instruments held by the Company: (in thousands) Balance Sheet Classification September 30, 2018 December 31, 2017 Assets: Commodity hedges at fair market value Prepaid expenses and other current assets $ 1,047 $ 4,420 Commodity hedges at fair market value Other assets 234 - Total assets $ 1,281 $ 4,420 |
Summary of Gross Derivative Assets and Gross Derivative Liabilities in Consolidated Condensed Balance Sheets | The following table summarizes the Company’s gross derivative assets and gross derivative liabilities in the consolidated condensed balance sheets (in thousands) September 30, 2018 December 31, 2017 Gross derivative assets $ 15,633 $ 4,481 Gross derivative liabilities 14,352 61 |
Summary of Outstanding Commodity Derivative Agreements | The following table summarizes the Company’s outstanding commodity derivative agreements: (in thousands) September 30, 2018 December 31, 2017 Notional amount of outstanding commodity derivative agreements $ 143,282 $ 59,564 Latest maturity date of outstanding commodity derivative agreements December 2019 December 2018 |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Deferred Compensation Plan Commodity Hedging Agreements and Acquisition Related Contingent Consideration | The following tables summarize, by assets and liabilities, the carrying amounts and fair values by level of the Company’s deferred compensation plan, commodity hedging agreements, debt and acquisition related contingent consideration: September 30, 2018 Carrying Total Fair Value Fair Value Fair Value (in thousands) Amount Fair Value Level 1 Level 2 Level 3 Assets: Deferred compensation plan assets $ 36,291 $ 36,291 $ 36,291 $ - $ - Commodity hedging agreements 1,281 1,281 - 1,281 - Liabilities: Deferred compensation plan liabilities 36,291 36,291 36,291 - - Non-public variable rate debt 462,031 462,500 - 462,500 - Non-public fixed rate debt 274,697 256,200 - 256,200 - Public debt securities 457,381 457,800 - 457,800 - Acquisition related contingent consideration 363,836 363,836 - - 363,836 December 31, 2017 Carrying Total Fair Value Fair Value Fair Value (in thousands) Amount Fair Value Level 1 Level 2 Level 3 Assets: Deferred compensation plan assets $ 33,166 $ 33,166 $ 33,166 $ - $ - Commodity hedging agreements 4,420 4,420 - 4,420 - Liabilities: Deferred compensation plan liabilities 33,166 33,166 33,166 - - Non-public variable rate debt 506,398 507,000 - 507,000 - Non-public fixed rate debt 124,829 126,400 - 126,400 - Public debt securities 456,791 475,100 - 475,100 - Acquisition related contingent consideration 381,291 381,291 - - 381,291 |
Summary of Reconciliation of Acquisition Related Contingent Consideration | The acquisition related contingent consideration is the Company’s only Level 3 asset or liability. A reconciliation of the Level 3 activity is as follows: Third Quarter First Three Quarters (in thousands) 2018 2017 2018 2017 Beginning balance - Level 3 liability $ 374,537 $ 319,102 $ 381,291 $ 253,437 Increase due to System Transformation Transactions acquisitions - - - 46,086 Measurement period adjustments (1) (1,279 ) - 813 - Payment of acquisition related contingent consideration (7,049 ) (5,094 ) (18,312 ) (11,650 ) Reclassification to current payables - 150 (1,540 ) (2,080 ) (Favorable)/unfavorable fair value adjustment (2,373 ) (5,225 ) 1,584 23,140 Ending balance - Level 3 liability $ 363,836 $ 308,933 $ 363,836 $ 308,933 (1) Measurement period adjustments relate to post-closing adjustments made in relation to the April 2017 Transactions and the October 2017 Transactions in accordance with the terms and conditions of the applicable asset purchase agreement or asset exchange agreement. See Note 3 to the consolidated condensed financial statements for additional information on the System Transformation Transactions. |
Other Liabilities (Tables)
Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Payables And Accruals [Abstract] | |
Summary of Other Liabilities | Other liabilities consisted of the following: (in thousands) September 30, 2018 December 31, 2017 Non-current portion of acquisition related contingent consideration $ 338,530 $ 357,952 Accruals for executive benefit plans 128,079 125,791 Non-current deferred proceeds from Territory Conversion Fee 85,734 87,449 Non-current deferred proceeds from Legacy Facilities Credit (1) 30,568 29,881 Other 17,399 19,506 Total other liabilities $ 600,310 $ 620,579 (1) In December 2017, The Coca‑Cola Company agreed to provide the Company a one-time fee, which, after final adjustments made during the third quarter of 2018, totaled $44.3 million (the “Legacy Facilities Credit”). The Legacy Facilities Credit compensated the Company for the net economic impact of changes made by The Coca‑Cola Company to the authorized pricing on sales of covered beverages produced at the manufacturing facilities owned by Company prior to the System Transformation and sold to The Coca‑Cola Company and certain U.S. Coca‑Cola bottlers pursuant to new pricing mechanisms included in the regional manufacturing agreement entered into by the Company and The Coca‑Cola Company on March 31, 2017, as amended. The Company immediately recognized the portion of the Legacy Facilities Credit applicable to a regional manufacturing facility in Mobile, Alabama which the Company transferred to CCR as part of the CCR Exchange Transaction. The remaining balance of the Legacy Facilities Credit will be amortized as a reduction to cost of sales over a period of 40 years. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Company's Purchases from Manufacturing Cooperatives | The following table summarizes the Company’s purchases from these manufacturing cooperatives: Third Quarter First Three Quarters (in thousands) 2018 2017 2018 2017 Purchases from SAC $ 38,569 $ 37,267 $ 117,729 $ 111,408 Purchases from Southeastern 32,379 29,344 92,613 80,301 Total purchases from manufacturing cooperatives $ 70,948 $ 66,611 $ 210,342 $ 191,709 |
Summary of Guaranteed Debt and Maximum Exposure under Guarantees | The following table summarizes the Company’s maximum exposure under this guarantee if SAC had borrowed up to its aggregate borrowing capacity: (in thousands) September 30, 2018 Maximum guaranteed debt $ 23,938 Equity investments (1) 8,175 Maximum total exposure, including equity investments $ 32,113 (1) Recorded in other assets on the Company’s consolidated condensed balance sheets. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Summary of Accumulated Other Comprehensive (Loss) | A summary of AOCI(L) for the third quarter of 2018 and the third quarter of 2017 is as follows: (in thousands) July 1, 2018 Pre-tax Activity Tax Effect September 30, 2018 Net pension activity: Actuarial loss $ (77,212 ) $ 934 $ (231 ) $ (76,509 ) Prior service costs (34 ) 6 (2 ) (30 ) Net postretirement benefits activity: Actuarial loss (22,767 ) 499 (123 ) (22,391 ) Prior service costs 1,048 (462 ) 114 700 Recognized loss due to October 2017 Divestitures (1) 6,220 - - 6,220 Foreign currency translation adjustment 8 (2 ) 1 7 Total $ (92,737 ) $ 975 $ (241 ) $ (92,003 ) (1) Recognized loss due to the divestiture of the Deep South and Somerset Exchange Business and the Florence and Laurel Distribution Business during the fourth quarter of 2017. (in thousands) July 2, 2017 Pre-tax Activity Tax Effect October 1, 2017 Net pension activity: Actuarial loss $ (71,402 ) $ 807 $ (311 ) $ (70,906 ) Prior service costs (52 ) 7 (3 ) (48 ) Net postretirement benefits activity: Actuarial loss (23,315 ) 648 (250 ) (22,917 ) Prior service costs 2,763 (745 ) 287 2,305 Foreign currency translation adjustment 5 11 (4 ) 12 Total $ (92,001 ) $ 728 $ (281 ) $ (91,554 ) A summary of AOCI(L) for the first three quarters of 2018 and the first three quarters of 2017 is as follows: (in thousands) December 31, 2017 Pre-tax Activity Tax Effect September 30, 2018 Net pension activity: Actuarial loss $ (78,618 ) $ 2,800 $ (691 ) $ (76,509 ) Prior service costs (43 ) 18 (5 ) (30 ) Net postretirement benefits activity: Actuarial loss (23,519 ) 1,497 (369 ) (22,391 ) Prior service costs 1,744 (1,386 ) 342 700 Recognized loss due to October 2017 Divestitures (1) 6,220 - - 6,220 Foreign currency translation adjustment 14 (10 ) 3 7 Total $ (94,202 ) $ 2,919 $ (720 ) $ (92,003 ) (1) Recognized loss due to the divestiture of the Deep South and Somerset Exchange Business and the Florence and Laurel Distribution Business during the fourth quarter of 2017. (in thousands) January 1, 2017 Pre-tax Activity Tax Effect October 1, 2017 Net pension activity: Actuarial loss $ (72,393 ) $ 2,421 $ (934 ) $ (70,906 ) Prior service costs (61 ) 21 (8 ) (48 ) Net postretirement benefits activity: Actuarial loss (24,111 ) 1,944 (750 ) (22,917 ) Prior service costs 3,679 (2,237 ) 863 2,305 Foreign currency translation adjustment (11 ) 37 (14 ) 12 Total $ (92,897 ) $ 2,186 $ (843 ) $ (91,554 ) |
Summary of Impact of Accumulated Other Comprehensive Income (Loss) on Statement of Operations | A summary of the impact of AOCI(L) on certain statements of operations line items is as follows: Third Quarter 2018 (in thousands) Net Pension Activity Net Benefits Activity Foreign Currency Translation Adjustment Total Cost of sales $ 217 $ 6 $ - $ 223 Selling, delivery and administrative expenses 723 31 (2 ) 752 Subtotal pre-tax 940 37 (2 ) 975 Income tax expense 233 9 (1 ) 241 Total after tax effect $ 707 $ 28 $ (1 ) $ 734 Third Quarter 2017 (in thousands) Net Pension Activity Net Benefits Activity Foreign Currency Translation Adjustment Total Cost of sales $ 171 $ (21 ) $ - $ 150 Selling, delivery and administrative expenses 643 (76 ) 11 578 Subtotal pre-tax 814 (97 ) 11 728 Income tax expense 314 (37 ) 4 281 Total after tax effect $ 500 $ (60 ) $ 7 $ 447 First Three Quarters 2018 (in thousands) Net Pension Activity Net Benefits Activity Foreign Currency Translation Adjustment Total Cost of sales $ 648 $ 19 $ - $ 667 Selling, delivery and administrative expenses 2,170 92 (10 ) 2,252 Subtotal pre-tax 2,818 111 (10 ) 2,919 Income tax expense 696 27 (3 ) 720 Total after tax effect $ 2,122 $ 84 $ (7 ) $ 2,199 First Three Quarters 2017 (in thousands) Net Pension Activity Net Benefits Activity Foreign Currency Translation Adjustment Total Cost of sales $ 497 $ (64 ) $ - $ 433 Selling, delivery and administrative expenses 1,945 (230 ) 37 1,752 Subtotal pre-tax 2,442 (294 ) 37 2,185 Income tax expense 942 (114 ) 14 842 Total after tax effect $ 1,500 $ (180 ) $ 23 $ 1,343 |
Capital Transactions (Tables)
Capital Transactions (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Summary of Awards | A summary of the awards issued in 2018 and 2017 is as follows: Fiscal Year 2018 2017 Date of approval for award March 6, 2018 March 7, 2017 Fiscal year of service covered by award 2017 2016 Shares settled in cash to satisfy tax withholding obligations 16,504 18,980 Increase in Class B Common Stock shares outstanding 20,296 21,020 Total Class B Common Stock awarded 36,800 40,000 |
Compensation Expense for the Awards Issued Pursuant to the Performance Unit Award Agreement | Compensation expense for the awards issued pursuant to the Performance Unit Award Agreement, recognized on the closing share price of the last trading day prior to the end of the fiscal period, was as follows: First Three Quarters (in thousands, except share price) 2018 2017 Total compensation expense $ 4,494 $ 6,473 Share price for compensation expense $ 182.28 $ 215.75 Share price date for compensation expense September 28, 2018 September 29, 2017 |
Pension and Postretirement Be_2
Pension and Postretirement Benefit Obligations (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Net Periodic Pension Cost | The components of net periodic pension cost were as follows: Third Quarter First Three Quarters (in thousands) 2018 2017 2018 2017 Service cost $ 1,412 $ 150 $ 4,237 $ 450 Interest cost 2,856 2,978 8,568 8,936 Expected return on plan assets (3,853 ) (3,399 ) (11,557 ) (10,197 ) Recognized net actuarial loss 934 807 2,800 2,421 Amortization of prior service cost 6 7 18 21 Net periodic pension cost $ 1,355 $ 543 $ 4,066 $ 1,631 |
Components of Net Periodic Postretirement Benefit Cost | The components of net periodic postretirement benefit cost were as follows: Third Quarter First Three Quarters (in thousands) 2018 2017 2018 2017 Service cost $ 502 $ 572 $ 1,507 $ 1,716 Interest cost 696 910 2,088 2,732 Recognized net actuarial loss 499 648 1,497 1,944 Amortization of prior service cost (462 ) (745 ) (1,386 ) (2,237 ) Net periodic postretirement benefit cost $ 1,235 $ 1,385 $ 3,706 $ 4,155 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transaction [Line Items] | |
Summary of Principal Balance Outstanding under Related Party Capital Leases | A summary of the principal balance outstanding under these related party capital leases is as follows: (in thousands) September 30, 2018 December 31, 2017 Company headquarters $ 10,597 $ 12,771 Snyder Production Center 9,033 11,612 |
Summary of Rental Payments Related to Capital Leases | A summary of rental payments related to these capital leases is as follows: Third Quarter First Three Quarters (in thousands) 2018 2017 2018 2017 Company headquarters $ 1,110 $ 1,091 $ 3,346 $ 3,294 Snyder Production Center 1,049 1,018 3,147 3,055 |
The Coca-Cola Company [Member] | |
Related Party Transaction [Line Items] | |
Summary of Significant Transactions between Company and The Coca-Cola Company | The following table and the subsequent descriptions summarize the significant transactions between the Company and The Coca‑Cola Company: Third Quarter First Three Quarters (in thousands) 2018 2017 2018 2017 Payments made by the Company to The Coca-Cola Company for: Concentrate, syrup, sweetener and other purchases $ 341,949 $ 317,040 $ 904,244 $ 806,256 Customer marketing programs 34,005 27,855 110,062 102,095 Cold drink equipment parts 7,958 6,881 22,188 18,968 Glacéau distribution agreement consideration - - - 15,598 Payments made by The Coca-Cola Company to the Company for: Proceeds from Territory Conversion Fee $ - $ - $ - $ 87,066 Marketing funding support payments 22,632 22,074 65,325 62,235 Fountain delivery and equipment repair fees 10,199 9,286 29,899 26,138 Facilitating the distribution of certain brands and packages to other Coca-Cola bottlers 1,937 1,773 7,663 6,881 Presence marketing funding support on the Company’s behalf 1,108 2,707 6,203 3,844 Cold drink equipment - - 3,789 8,400 |
CCR [Member] | |
Related Party Transaction [Line Items] | |
Summary of Purchases and Sales Arrangements Between Related Parties | The following table summarizes purchases and sales under these arrangements between the Company and CCR prior to the closing of the October 2017 Transactions: 2017 (in thousands) Third Quarter First Three Quarters Purchases from CCR $ 20,157 $ 110,451 Gross sales to CCR 11,873 72,930 |
Summary of Liability to Estimated Fair Value of Contingent Consideration | The following table summarizes the liability recorded by the Company to reflect the estimated fair value of contingent consideration related to future sub‑bottling payments to CCR: (in thousands) September 30, 2018 December 31, 2017 Current portion of acquisition related contingent consideration $ 25,306 $ 23,339 Non-current portion of acquisition related contingent consideration 338,530 357,952 Total acquisition related contingent consideration $ 363,836 $ 381,291 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic Net Income Per Share and Diluted Net Income Per Share | The following table sets forth the computation of basic net income per share and diluted net income per share under the two-class method: Third Quarter First Three Quarters (in thousands, except per share data) 2018 2017 2018 2017 Numerator for basic and diluted net income per Common Stock and Class B Common Stock share: Net income attributable to Coca-Cola Bottling Co. Consolidated $ 25,164 $ 17,316 $ 7,046 $ 18,613 Less dividends: Common Stock 1,787 1,785 5,357 5,356 Class B Common Stock 556 548 1,657 1,639 Total undistributed earnings $ 22,821 $ 14,983 $ 32 $ 11,618 Common Stock undistributed earnings – basic $ 17,422 $ 11,463 24 $ 8,893 Class B Common Stock undistributed earnings – basic 5,399 3,520 8 2,725 Total undistributed earnings – basic $ 22,821 $ 14,983 $ 32 $ 11,618 Common Stock undistributed earnings – diluted $ 17,327 $ 11,414 24 $ 8,855 Class B Common Stock undistributed earnings – diluted 5,494 3,569 8 2,763 Total undistributed earnings – diluted $ 22,821 $ 14,983 $ 32 $ 11,618 Numerator for basic net income per Common Stock share: Dividends on Common Stock $ 1,787 $ 1,785 $ 5,357 $ 5,356 Common Stock undistributed earnings – basic 17,422 11,463 24 8,893 Numerator for basic net income per Common Stock share $ 19,209 $ 13,248 $ 5,381 $ 14,249 Numerator for basic net income per Class B Common Stock share: Dividends on Class B Common Stock $ 556 $ 548 $ 1,657 $ 1,639 Class B Common Stock undistributed earnings – basic 5,399 3,520 8 2,725 Numerator for basic net income per Class B Common Stock share $ 5,955 $ 4,068 $ 1,665 $ 4,364 Numerator for diluted net income per Common Stock share: Dividends on Common Stock $ 1,787 $ 1,785 $ 5,357 $ 5,356 Dividends on Class B Common Stock assumed converted to Common Stock 556 548 1,657 1,639 Common Stock undistributed earnings – diluted 22,821 14,983 32 11,618 Numerator for diluted net income per Common Stock share $ 25,164 $ 17,316 $ 7,046 $ 18,613 Numerator for diluted net income per Class B Common Stock share: Dividends on Class B Common Stock $ 556 $ 548 $ 1,657 $ 1,639 Class B Common Stock undistributed earnings – diluted 5,494 3,569 8 2,763 Numerator for diluted net income per Class B Common Stock share $ 6,050 $ 4,117 $ 1,665 $ 4,402 Third Quarter First Three Quarters (in thousands, except per share data) 2018 2017 2018 2017 Denominator for basic net income per Common Stock and Class B Common Stock share: Common Stock weighted average shares outstanding – basic 7,141 7,141 7,141 7,141 Class B Common Stock weighted average shares outstanding – basic 2,213 2,193 2,208 2,188 Denominator for diluted net income per Common Stock and Class B Common Stock share: Common Stock weighted average shares outstanding – diluted (assumes conversion of Class B Common Stock to Common Stock) 9,405 9,374 9,400 9,369 Class B Common Stock weighted average shares outstanding – diluted 2,264 2,233 2,259 2,228 Basic net income per share: Common Stock $ 2.69 $ 1.86 $ 0.75 $ 2.00 Class B Common Stock $ 2.69 $ 1.86 $ 0.75 $ 2.00 Diluted net income per share: Common Stock $ 2.69 $ 1.85 $ 0.75 $ 1.99 Class B Common Stock $ 2.68 $ 1.84 $ 0.74 $ 1.97 NOTES TO TABLE (1) For purposes of the diluted net income per share computation for Common Stock, all shares of Class B Common Stock are assumed to be converted; therefore, 100% of undistributed earnings is allocated to Common Stock. (2) For purposes of the diluted net income per share computation for Class B Common Stock, weighted average shares of Class B Common Stock are assumed to be outstanding for the entire period and not converted. (3) The denominator for diluted net income per share for Common Stock and Class B Common Stock includes the dilutive effect of shares relative to the Performance Unit Award Agreement. (4) The Company does not have anti-dilutive shares. |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Summary of Changes in Current Assets and Current Liabilities Affecting Cash Flows | Changes in current assets and current liabilities affecting cash flows were as follows: First Three Quarters (in thousands) 2018 2017 Accounts receivable, trade, net $ (34,899 ) $ (109,023 ) Accounts receivable from The Coca-Cola Company (2,083 ) 1,548 Accounts receivable, other 10,328 (8,308 ) Inventories (46,274 ) (19,254 ) Prepaid expenses and other current assets 8,951 (281 ) Accounts payable, trade 3,749 67,058 Accounts payable to The Coca-Cola Company (15,222 ) 45,722 Other accrued liabilities (33,712 ) 7,924 Accrued compensation (15,496 ) (10,062 ) Accrued interest payable 4,237 5,640 Change in current assets less current liabilities (exclusive of acquisitions) $ (120,421 ) $ (19,036 ) |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Summary of Financial Information by Segment | The Company’s segment results are as follows: Third Quarter First Three Quarters (in thousands) 2018 2017 2018 2017 Net sales: Nonalcoholic Beverages (1) $ 1,180,212 $ 1,142,238 $ 3,427,492 $ 3,139,974 All Other (1) 93,493 81,439 273,490 220,734 Eliminations (2) (62,044 ) (61,151 ) (189,985 ) (163,189 ) Consolidated net sales $ 1,211,661 $ 1,162,526 $ 3,510,997 $ 3,197,519 Income from operations: Nonalcoholic Beverages $ 39,361 $ 33,867 $ 32,705 $ 90,254 All Other 5,043 3,605 12,381 10,823 Consolidated income from operations $ 44,404 $ 37,472 $ 45,086 $ 101,077 Depreciation and amortization: Nonalcoholic Beverages $ 44,050 $ 41,151 $ 133,095 $ 114,166 All Other 2,539 2,095 7,401 6,127 Consolidated depreciation and amortization $ 46,589 $ 43,246 $ 140,496 $ 120,293 (1) In order to correct an error in the prior year segment presentation, the Company revised net sales by $39.2 million for the third quarter of 2017 and $96.4 million for the first three quarters of 2017 to reflect sales in the Nonalcoholic Beverages segment which were previously attributed to All Other. Total net sales remain unchanged in prior periods and these revisions were not considered material to the prior periods presented. (2) The entire net sales elimination for each period presented represents net sales from All Other to the Nonalcoholic Beverages segment. Sales between these segments are recognized at either fair market value or cost depending on the nature of the transaction. |
Significant Accounting Polici_3
Significant Accounting Policies and New Accounting Pronouncements - Additional Information (Detail) - ASU 2017-07 [Member] - Other Expense [Member] - Nonalcoholic Beverages [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | |
Non-service Cost Components of Net Periodic Benefit Cost [Member] | ||||
Significant Accounting Policies And New Accounting Pronouncements [Line Items] | ||||
Net periodic benefit cost | $ 0.6 | $ 2 | ||
Non-service Cost Components of Net Periodic Benefit Cost and Other Benefit Plan Charges [Member] | ||||
Significant Accounting Policies And New Accounting Pronouncements [Line Items] | ||||
Net periodic benefit cost | $ 1.3 | $ 4 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018USD ($) | Sep. 30, 2018Category | Oct. 01, 2017 | |
Revenue From Contract With Customer [Line Items] | |||
Description of payment from customers | within 30 days from the date of sale | ||
Number of sales | Category | 2 | ||
Reserve for customer return | $ | $ 2.3 | ||
Point in Time Net Sales [Member] | |||
Revenue From Contract With Customer [Line Items] | |||
Sales percentage | 97.00% | 97.00% | |
Bottle/Can Sales [Member] | |||
Revenue From Contract With Customer [Line Items] | |||
Sales percentage | 83.00% | 84.00% | |
Sparkling Beverage [Member] | Bottle/Can Sales [Member] | |||
Revenue From Contract With Customer [Line Items] | |||
Sales percentage | 61.00% | 62.00% | |
Post-Mix and Other [Member] | Bottle/Can Sales [Member] | |||
Revenue From Contract With Customer [Line Items] | |||
Sales return estimated percentage | 1.00% | ||
Coke Bottle Can Sales Volume Product [Member] | Product Concentration Risk [Member] | Future Consumption [Member] | |||
Revenue From Contract With Customer [Line Items] | |||
Sales percentage | 66.00% |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Net Sales By Category (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | |
Revenue From Contract With Customer [Line Items] | ||||
Net sales | $ 1,211,661 | $ 1,162,526 | $ 3,510,997 | $ 3,197,519 |
Bottle/Can Sales [Member] | ||||
Revenue From Contract With Customer [Line Items] | ||||
Net sales | 1,018,896 | 967,205 | 2,930,215 | 2,679,601 |
Bottle/Can Sales [Member] | Sparkling Beverages (Carbonated) [Member] | ||||
Revenue From Contract With Customer [Line Items] | ||||
Net sales | 605,614 | 582,710 | 1,787,451 | 1,670,093 |
Bottle/Can Sales [Member] | Still Beverages (Noncarbonated, Including Energy Products) [Member] | ||||
Revenue From Contract With Customer [Line Items] | ||||
Net sales | 413,282 | 384,495 | 1,142,764 | 1,009,508 |
Other Sales [Member] | ||||
Revenue From Contract With Customer [Line Items] | ||||
Net sales | 192,765 | 195,321 | 580,782 | 517,918 |
Other Sales [Member] | Sales to Other Coca-Cola Bottlers [Member] | ||||
Revenue From Contract With Customer [Line Items] | ||||
Net sales | 92,139 | 104,619 | 300,819 | 274,317 |
Other Sales [Member] | Post-Mix and Other [Member] | ||||
Revenue From Contract With Customer [Line Items] | ||||
Net sales | $ 100,626 | $ 90,702 | $ 279,963 | $ 243,601 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue from Contracts with Customers (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | |
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 1,211,661 | $ 1,162,526 | $ 3,510,997 | $ 3,197,519 |
Point in Time Net Sales [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 1,168,276 | 1,132,181 | 3,394,253 | 3,112,777 |
Point in Time Net Sales [Member] | Nonalcoholic - Over Time [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 1,168,276 | 1,132,181 | 3,394,253 | 3,112,777 |
Over Time Net Sales [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 43,385 | 30,345 | 116,744 | 84,742 |
Over Time Net Sales [Member] | Nonalcoholic - Over Time [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 11,936 | 10,057 | 33,239 | 27,197 |
Over Time Net Sales [Member] | Other - Over Time [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 31,449 | $ 20,288 | $ 83,505 | $ 57,545 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Additional Information (Detail) - USD ($) | Oct. 02, 2017 | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | Oct. 01, 2017 |
Business Acquisition [Line Items] | |||||
Gain on exchange transactions | $ 10,170,000 | $ 10,170,000 | |||
Final settlement amount | (1,811,000) | $ 227,769,000 | |||
Transaction related expenses incurred | $ 5,600,000 | ||||
CCR Exchange Business [Member] | |||||
Business Acquisition [Line Items] | |||||
Effective date of business acquisition | Oct. 2, 2017 | ||||
Cash purchase | $ 15,900,000 | ||||
Final settlement amount | 26,200,000 | ||||
Increase (decrease) cash purchase price | 10,300,000 | ||||
Goodwill expected to be deductible for tax purposes | 3,500,000 | 3,500,000 | |||
Memphis Territory [Member] | |||||
Business Acquisition [Line Items] | |||||
Effective date of business acquisition | Oct. 2, 2017 | ||||
Cash purchase | $ 39,600,000 | ||||
Increase (decrease) cash purchase price | 2,600,000 | ||||
Goodwill expected to be deductible for tax purposes | 8,600,000 | 8,600,000 | |||
United Exchange Business [Member] | |||||
Business Acquisition [Line Items] | |||||
Effective date of business acquisition | Oct. 2, 2017 | ||||
Cash purchase | $ 3,400,000 | ||||
Increase (decrease) cash purchase price | 2,800,000 | ||||
Goodwill expected to be deductible for tax purposes | 2,700,000 | 2,700,000 | |||
Akron, Elyria, Toledo, Willoughby and Youngstown, Ohio and a regional manufacturing facility and related assets located in Twinsburg, Ohio | |||||
Business Acquisition [Line Items] | |||||
Goodwill expected to be deductible for tax purposes | 11,400,000 | 11,400,000 | |||
Akron, Elyria, Toledo, Willoughby and Youngstown, Ohio and a regional manufacturing facility and related assets located in Twinsburg, Ohio | CCR [Member] | |||||
Business Acquisition [Line Items] | |||||
Increase (decrease) cash purchase price | $ (4,700,000) | ||||
January 2017 Transactions [Member] | |||||
Business Acquisition [Line Items] | |||||
Goodwill expected to be deductible for tax purposes | 0 | 0 | |||
March 2017 Transactions [Member] | |||||
Business Acquisition [Line Items] | |||||
Goodwill expected to be deductible for tax purposes | $ 0 | $ 0 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Summary of Fair Value of Acquired Assets and Assumed Liabilities of System Transformation Transactions that Closed during 2017, as of Acquisition Date (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Oct. 02, 2017 | Oct. 01, 2017 | Apr. 28, 2017 | Mar. 31, 2017 | Jan. 27, 2017 | Jan. 01, 2017 |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 165,903 | $ 169,316 | $ 152,701 | $ 144,586 | ||||
Current liabilities (acquisition related contingent consideration) | 25,306 | 23,339 | ||||||
Other liabilities (acquisition related contingent consideration) | $ 338,530 | 357,952 | ||||||
Anderson, Fort Wayne, Lafayette, South Bend and Terre Haute, Indiana Expansion Territories Acquisitions [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash | $ 107 | |||||||
Inventories | 5,953 | |||||||
Prepaid expenses and other current assets | 1,155 | |||||||
Accounts receivable from The Coca-Cola Company | 1,042 | |||||||
Property, plant and equipment | 25,708 | |||||||
Other assets (including deferred taxes) | 1,158 | |||||||
Goodwill | 1,544 | |||||||
Total acquired assets | 60,167 | |||||||
Current liabilities (acquisition related contingent consideration) | 1,350 | |||||||
Other current liabilities | 324 | |||||||
Other liabilities (acquisition related contingent consideration) | 26,377 | |||||||
Other liabilities | 43 | |||||||
Total assumed liabilities | 28,094 | |||||||
Bloomington and Indianapolis, Indiana and Columbus and Mansfield, Ohio regional manufacturing facilities and Indianapolis and Portland, Indiana Expansion Facilities Acquisitions [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash | $ 211 | |||||||
Inventories | 20,952 | |||||||
Prepaid expenses and other current assets | 5,117 | |||||||
Accounts receivable from The Coca-Cola Company | 1,807 | |||||||
Property, plant and equipment | 81,638 | |||||||
Other assets (including deferred taxes) | 3,227 | |||||||
Goodwill | 2,527 | |||||||
Total acquired assets | 163,979 | |||||||
Current liabilities (acquisition related contingent consideration) | 2,958 | |||||||
Other current liabilities | 3,760 | |||||||
Other liabilities (acquisition related contingent consideration) | 49,739 | |||||||
Other liabilities | 2,953 | |||||||
Total assumed liabilities | 59,410 | |||||||
Akron, Elyria, Toledo, Willoughby and Youngstown, Ohio Distribution Territories and Twinsburg, Ohio Regional Manufacturing Facility Acquisition [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash | $ 103 | |||||||
Inventories | 14,554 | |||||||
Prepaid expenses and other current assets | 4,068 | |||||||
Accounts receivable from The Coca-Cola Company | 2,552 | |||||||
Property, plant and equipment | 52,263 | |||||||
Other assets (including deferred taxes) | 3,960 | |||||||
Goodwill | 16,941 | |||||||
Total acquired assets | 114,941 | |||||||
Current liabilities (acquisition related contingent consideration) | 1,475 | |||||||
Other current liabilities | 2,860 | |||||||
Other liabilities (acquisition related contingent consideration) | 25,616 | |||||||
Other liabilities | 1,792 | |||||||
Total assumed liabilities | 31,743 | |||||||
October 2017 Acquisitions [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash | $ 191 | |||||||
Inventories | 14,850 | |||||||
Prepaid expenses and other current assets | 4,573 | |||||||
Accounts receivable from The Coca-Cola Company | 1,447 | |||||||
Property, plant and equipment | 71,589 | |||||||
Other assets (including deferred taxes) | 1,300 | |||||||
Goodwill | 11,442 | |||||||
Total acquired assets | 239,792 | |||||||
Current liabilities (acquisition related contingent consideration) | 1,501 | |||||||
Other current liabilities | 8,311 | |||||||
Other liabilities (acquisition related contingent consideration) | 20,676 | |||||||
Other liabilities | 102 | |||||||
Total assumed liabilities | 30,590 | |||||||
2017 System Transformation Transactions Acquisitions [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash | 612 | |||||||
Inventories | 56,309 | |||||||
Prepaid expenses and other current assets | 14,913 | |||||||
Accounts receivable from The Coca-Cola Company | 6,848 | |||||||
Property, plant and equipment | 231,198 | |||||||
Other assets (including deferred taxes) | 9,645 | |||||||
Goodwill | 32,454 | |||||||
Total acquired assets | 578,879 | |||||||
Current liabilities (acquisition related contingent consideration) | 7,284 | |||||||
Other current liabilities | 15,255 | |||||||
Other liabilities (acquisition related contingent consideration) | 122,408 | |||||||
Other liabilities | 4,890 | |||||||
Total assumed liabilities | 149,837 | |||||||
Distribution Agreements [Member] | Anderson, Fort Wayne, Lafayette, South Bend and Terre Haute, Indiana Expansion Territories Acquisitions [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Other identifiable intangible assets | 22,000 | |||||||
Distribution Agreements [Member] | Bloomington and Indianapolis, Indiana and Columbus and Mansfield, Ohio regional manufacturing facilities and Indianapolis and Portland, Indiana Expansion Facilities Acquisitions [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Other identifiable intangible assets | 46,750 | |||||||
Distribution Agreements [Member] | Akron, Elyria, Toledo, Willoughby and Youngstown, Ohio Distribution Territories and Twinsburg, Ohio Regional Manufacturing Facility Acquisition [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Other identifiable intangible assets | 19,500 | |||||||
Distribution Agreements [Member] | October 2017 Acquisitions [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Other identifiable intangible assets | 129,450 | |||||||
Distribution Agreements [Member] | 2017 System Transformation Transactions Acquisitions [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Other identifiable intangible assets | 217,700 | |||||||
Customer Lists [Member] | Anderson, Fort Wayne, Lafayette, South Bend and Terre Haute, Indiana Expansion Territories Acquisitions [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Other identifiable intangible assets | $ 1,500 | |||||||
Customer Lists [Member] | Bloomington and Indianapolis, Indiana and Columbus and Mansfield, Ohio regional manufacturing facilities and Indianapolis and Portland, Indiana Expansion Facilities Acquisitions [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Other identifiable intangible assets | $ 1,750 | |||||||
Customer Lists [Member] | Akron, Elyria, Toledo, Willoughby and Youngstown, Ohio Distribution Territories and Twinsburg, Ohio Regional Manufacturing Facility Acquisition [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Other identifiable intangible assets | $ 1,000 | |||||||
Customer Lists [Member] | October 2017 Acquisitions [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Other identifiable intangible assets | $ 4,950 | |||||||
Customer Lists [Member] | 2017 System Transformation Transactions Acquisitions [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Other identifiable intangible assets | $ 9,200 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Summary of Fair Value of Acquired Assets and Assumed Liabilities as of Acquisition Date (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Oct. 02, 2017 | Oct. 01, 2017 | Jan. 01, 2017 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 165,903 | $ 169,316 | $ 152,701 | $ 144,586 | |
Current liabilities (acquisition related contingent consideration) | 25,306 | 23,339 | |||
Other liabilities (acquisition related contingent consideration) | $ 338,530 | $ 357,952 | |||
CCR Exchange Business [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 91 | ||||
Inventories | 10,667 | ||||
Prepaid expenses and other current assets | 3,172 | ||||
Accounts receivable from The Coca-Cola Company | 674 | ||||
Property, plant and equipment | 47,484 | ||||
Other assets (including deferred taxes) | 753 | ||||
Goodwill | 3,546 | ||||
Total acquired assets | 149,687 | ||||
Other current liabilities | 3,497 | ||||
Other liabilities | 15 | ||||
Total assumed liabilities | 3,512 | ||||
Memphis Territory [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash | 100 | ||||
Inventories | 3,354 | ||||
Prepaid expenses and other current assets | 1,087 | ||||
Accounts receivable from The Coca-Cola Company | 563 | ||||
Property, plant and equipment | 21,321 | ||||
Other assets (including deferred taxes) | 547 | ||||
Goodwill | 5,199 | ||||
Total acquired assets | 68,771 | ||||
Current liabilities (acquisition related contingent consideration) | 1,501 | ||||
Other current liabilities | 4,323 | ||||
Other liabilities (acquisition related contingent consideration) | 20,676 | ||||
Other liabilities | 87 | ||||
Total assumed liabilities | 26,587 | ||||
United Exchange Business [Member] | |||||
Business Acquisition [Line Items] | |||||
Inventories | 829 | ||||
Prepaid expenses and other current assets | 314 | ||||
Accounts receivable from The Coca-Cola Company | 210 | ||||
Property, plant and equipment | 2,784 | ||||
Goodwill | 2,697 | ||||
Total acquired assets | 21,334 | ||||
Other current liabilities | 491 | ||||
Total assumed liabilities | 491 | ||||
October 2017 Acquisitions [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash | 191 | ||||
Inventories | 14,850 | ||||
Prepaid expenses and other current assets | 4,573 | ||||
Accounts receivable from The Coca-Cola Company | 1,447 | ||||
Property, plant and equipment | 71,589 | ||||
Other assets (including deferred taxes) | 1,300 | ||||
Goodwill | 11,442 | ||||
Total acquired assets | 239,792 | ||||
Current liabilities (acquisition related contingent consideration) | 1,501 | ||||
Other current liabilities | 8,311 | ||||
Other liabilities (acquisition related contingent consideration) | 20,676 | ||||
Other liabilities | 102 | ||||
Total assumed liabilities | 30,590 | ||||
Distribution Agreements [Member] | CCR Exchange Business [Member] | |||||
Business Acquisition [Line Items] | |||||
Other identifiable intangible assets | 80,100 | ||||
Distribution Agreements [Member] | Memphis Territory [Member] | |||||
Business Acquisition [Line Items] | |||||
Other identifiable intangible assets | 35,400 | ||||
Distribution Agreements [Member] | United Exchange Business [Member] | |||||
Business Acquisition [Line Items] | |||||
Other identifiable intangible assets | 13,950 | ||||
Distribution Agreements [Member] | October 2017 Acquisitions [Member] | |||||
Business Acquisition [Line Items] | |||||
Other identifiable intangible assets | 129,450 | ||||
Customer Lists [Member] | CCR Exchange Business [Member] | |||||
Business Acquisition [Line Items] | |||||
Other identifiable intangible assets | 3,200 | ||||
Customer Lists [Member] | Memphis Territory [Member] | |||||
Business Acquisition [Line Items] | |||||
Other identifiable intangible assets | 1,200 | ||||
Customer Lists [Member] | United Exchange Business [Member] | |||||
Business Acquisition [Line Items] | |||||
Other identifiable intangible assets | 550 | ||||
Customer Lists [Member] | October 2017 Acquisitions [Member] | |||||
Business Acquisition [Line Items] | |||||
Other identifiable intangible assets | $ 4,950 |
Acquisitions and Divestitures_4
Acquisitions and Divestitures - Summary of Carrying Value of Assets and Liabilities of Divestitures (Detail) - October 2017 Divestitures [Member] $ in Thousands | Oct. 02, 2017USD ($) |
Business Acquisition [Line Items] | |
Cash | $ 303 |
Inventories | 13,717 |
Prepaid expenses and other current assets | 1,199 |
Property, plant and equipment | 44,380 |
Other assets (including deferred taxes) | 604 |
Goodwill | 13,073 |
Distribution agreements | 65,043 |
Total divested assets | 138,319 |
Other current liabilities | 5,683 |
Pension and postretirement benefit obligation | 16,855 |
Total divested liabilities | $ 22,538 |
Acquisitions and Divestitures_5
Acquisitions and Divestitures - Schedule of Condensed Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | |
Business Acquisition [Line Items] | ||||
Net sales | $ 1,211,661 | $ 1,162,526 | $ 3,510,997 | $ 3,197,519 |
Income from operations | 44,404 | 37,472 | 45,086 | 101,077 |
2017 System Transformation Transactions Acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Net sales | 308,825 | 221,034 | 896,179 | 454,174 |
Income from operations | 11,874 | 3,176 | 14,635 | 13,595 |
2017 System Transformation Transactions [Member] | ||||
Business Acquisition [Line Items] | ||||
Net sales | 308,825 | 300,066 | 896,179 | 685,475 |
Income from operations | $ 11,874 | 10,865 | $ 14,635 | 36,568 |
October 2017 Divestitures [Member] | ||||
Business Acquisition [Line Items] | ||||
Net sales | 79,032 | 231,301 | ||
Income from operations | $ 7,689 | $ 22,973 |
Acquisitions and Divestitures_6
Acquisitions and Divestitures - Schedule of Unaudited Pro Forma Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | |
Business Combinations [Abstract] | ||||
Net Sales, Balance as reported | $ 1,211,661 | $ 1,162,526 | $ 3,510,997 | $ 3,197,519 |
Net Sales, Pro forma adjustments (unaudited) | 1,754 | 231,183 | ||
Net Sales, Balance including pro forma adjustments (unaudited) | 1,164,280 | 3,428,702 | ||
Income from Operations, Balance as reported | $ 44,404 | 37,472 | $ 45,086 | 101,077 |
Income from Operations, Pro forma adjustments (unaudited) | 55 | 4,262 | ||
Income from Operations, Balance including pro forma adjustments (unaudited) | $ 37,527 | $ 105,339 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 156,669 | $ 116,354 |
Manufacturing materials | 35,703 | 33,073 |
Plastic shells, plastic pallets and other inventories | 37,520 | 34,191 |
Total inventories | $ 229,892 | $ 183,618 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Summary of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Prepaid Expense And Other Assets [Abstract] | ||
Repair parts | $ 29,535 | $ 30,530 |
Current portion of income taxes | 22,896 | 35,930 |
Prepaid software | 5,786 | 5,855 |
Prepayments for sponsorship contracts | 5,644 | 6,358 |
Commodity hedges at fair market value | 1,047 | 4,420 |
Other prepaid expenses and other current assets | 26,606 | 17,553 |
Total prepaid expenses and other current assets | $ 91,514 | $ 100,646 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Principal Categories and Estimated Useful Lives of Property, Plant and Equipment, Net (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 1,842,728 | $ 1,798,824 |
Less: Accumulated depreciation and amortization | 844,611 | 767,436 |
Property, plant and equipment, net | 998,117 | 1,031,388 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | 78,478 | 78,825 |
Buildings [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 216,821 | 211,308 |
Buildings [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives | 8 years | |
Buildings [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives | 50 years | |
Machinery and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 320,447 | 315,117 |
Machinery and Equipment [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives | 5 years | |
Machinery and Equipment [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives | 20 years | |
Transportation Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 373,426 | 351,479 |
Transportation Equipment [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives | 4 years | |
Transportation Equipment [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives | 20 years | |
Furniture and Fixtures [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 92,000 | 89,559 |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives | 3 years | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives | 10 years | |
Cold Drink Dispensing Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 497,008 | 488,208 |
Cold Drink Dispensing Equipment [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives | 5 years | |
Cold Drink Dispensing Equipment [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives | 17 years | |
Leasehold and Land Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 130,257 | 125,348 |
Leasehold and Land Improvements [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives | 5 years | |
Leasehold and Land Improvements [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives | 20 years | |
Software for Internal Use [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 120,767 | 113,490 |
Software for Internal Use [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives | 3 years | |
Software for Internal Use [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives | 10 years | |
Construction in Progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 13,524 | $ 25,490 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Oct. 01, 2017 | |
Property Plant And Equipment [Abstract] | ||
Depreciation expense including amortization expense | $ 123,542 | $ 108,697 |
Goodwill - Schedule of Reconcil
Goodwill - Schedule of Reconciliation of Activity for Goodwill (Detail) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | ||
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Beginning balance - goodwill | $ 169,316 | $ 144,586 | |
Goodwill, System Transformation Transactions acquisitions | 19,035 | ||
Goodwill, Measurement period adjustments | [1] | (3,413) | 1,807 |
Goodwill, Balance held for sale | [2] | (12,727) | |
Ending balance - goodwill | $ 165,903 | $ 152,701 | |
[1] | Measurement period adjustments relate to post-closing adjustments made in accordance with the terms and conditions of the applicable asset purchase agreement or asset exchange agreement for each System Transformation Transaction. See Note 3 to the consolidated condensed financial statements for additional information on the System Transformation Transactions. | ||
[2] | Goodwill of $12.7 million related to the October 2017 Divestitures was classified as held for sale as of October 1, 2017. |
Goodwill - Schedule of Reconc_2
Goodwill - Schedule of Reconciliation of Activity for Goodwill (Parenthetical) (Detail) $ in Millions | Oct. 01, 2017USD ($) |
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | |
Goodwill Disclosure [Line Items] | |
Goodwill, attributable to held for sale | $ 12.7 |
Distribution Agreements, Net -
Distribution Agreements, Net - Additional Information (Detail) - Distribution Agreements [Member] | 9 Months Ended |
Sep. 30, 2018 | |
Minimum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Estimated useful life | 20 years |
Maximum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Estimated useful life | 40 years |
Distribution Agreements, Net _2
Distribution Agreements, Net - Other Identifiable Intangible Assets Net (Detail) - Distribution Agreements [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jan. 01, 2017 |
Finite Lived Intangible Assets [Line Items] | ||||
Distribution agreements at cost | $ 945,895 | $ 939,527 | ||
Less: Accumulated amortization | (44,064) | (26,175) | ||
Total other identifiable intangible assets, net | $ 901,831 | $ 913,352 | $ 729,777 | $ 234,988 |
Distribution Agreements, Net _3
Distribution Agreements, Net - Reconciliation of Activity for Other Identifiable Intangible Assets Net (Detail) - Distribution Agreements [Member] - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | ||
Finite Lived Intangible Assets [Line Items] | |||
Total Other Identifiable Intangible Assets, Beginning Balance | $ 913,352 | $ 234,988 | |
Conversion to distribution rights from franchise rights | [1] | 533,040 | |
System Transformation Transactions acquisitions | 36,800 | ||
Measurement period adjustment | [2] | 4,700 | |
Other distribution agreements | 1,668 | 44 | |
Additional accumulated amortization | (17,889) | (11,774) | |
Balance held for sale | [3] | (63,321) | |
Total Other Identifiable Intangible Assets, Ending Balance | $ 901,831 | $ 729,777 | |
[1] | In connection with the closing of the March 2017 Transactions, the Company, The Coca-Cola Company and CCR entered into a comprehensive beverage agreement (as amended, the “CBA”) on March 31, 2017, and concurrently converted the Company’s franchise rights within the territories in which the Company distributed CocaCola products prior to beginning the System Transformation to distribution agreements, net on the consolidated condensed financial statements. Prior to this conversion, the Company’s franchise rights resided entirely within the Nonalcoholic Beverages segment. | ||
[2] | Measurement period adjustment relates to post-closing adjustments made in relation to the Memphis Transaction in accordance with the terms and conditions of the September 2017 APA. The adjustment to amortization expense associated with this measurement period adjustment was not material to the consolidated condensed financial statements. See Note 3 to the consolidated condensed financial statements for additional information on the System Transformation Transactions. | ||
[3] | Distribution agreements, net of $63.3 million related to the October 2017 Divestitures was classified as held for sale as of October 1, 2017. |
Distribution Agreements, Net _4
Distribution Agreements, Net - Reconciliation of Activity for Other Identifiable Intangible Assets Net (Parenthetical) (Detail) - Distribution Agreements [Member] $ in Thousands | Oct. 01, 2017USD ($) | |
Finite Lived Intangible Assets [Line Items] | ||
Assets held for sale, distribution agreements net | $ 63,321 | [1] |
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Assets held for sale, distribution agreements net | $ 63,300 | |
[1] | Distribution agreements, net of $63.3 million related to the October 2017 Divestitures was classified as held for sale as of October 1, 2017. |
Customer Lists and Other Iden_3
Customer Lists and Other Identifiable Intangible Assets, Net - Additional Information (Detail) - Customer Lists and Other Identifiable Intangible Assets [Member] | 9 Months Ended |
Sep. 30, 2018 | |
Minimum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Estimated useful life | 12 years |
Maximum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Estimated useful life | 20 years |
Customer Lists and Other Iden_4
Customer Lists and Other Identifiable Intangible Assets, Net - Other Identifiable Intangible Assets (Detail) - Customer Lists and Other Identifiable Intangible Assets [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jan. 01, 2017 |
Finite Lived Intangible Assets [Line Items] | ||||
Other identifiable intangible assets, cost | $ 25,288 | $ 25,288 | ||
Less: Accumulated amortization | (8,347) | (6,968) | ||
Total other identifiable intangible assets, net | $ 16,941 | $ 18,320 | $ 13,262 | $ 10,427 |
Customer Lists and Other Iden_5
Customer Lists and Other Identifiable Intangible Assets, Net - Reconciliation of Activity for Other Identifiable Intangible Assets (Detail) - Customer Lists and Other Identifiable Intangible Assets [Member] - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Oct. 01, 2017 | |
Finite Lived Intangible Assets [Line Items] | ||
Total Other Identifiable Intangible Assets, Beginning Balance | $ 18,320 | $ 10,427 |
System Transformation Transactions acquisitions | 3,800 | |
Additional accumulated amortization | (1,379) | (965) |
Total Other Identifiable Intangible Assets, Ending Balance | $ 16,941 | $ 13,262 |
Other Accrued Liabilities - Sum
Other Accrued Liabilities - Summary of Other Accrued Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Accounts Payable And Accrued Liabilities Current [Abstract] | |||
Accrued insurance costs | $ 39,299 | $ 35,433 | |
Employee and retiree benefit plan accruals | 25,950 | 27,024 | |
Accrued marketing costs | 25,875 | 33,376 | |
Current portion of acquisition related contingent consideration | 25,306 | 23,339 | |
Checks and transfers yet to be presented for payment from zero balance cash accounts | 11,900 | 37,262 | |
Accrued taxes (other than income taxes) | 5,811 | 6,391 | |
Current deferred proceeds from Territory Conversion Fee | [1] | 2,286 | 2,286 |
All other accrued expenses | 17,182 | 20,419 | |
Total other accrued liabilities | $ 153,609 | $ 185,530 | |
[1] | Pursuant to a territory conversion agreement entered into by the Company, The CocaCola Company and CCR in September 2015 (as amended), upon the conversion of the Company’s then-existing bottling agreements to the CBA on March 31, 2017, the Company received a one-time fee from CCR, which, after final adjustments made during the second quarter of 2017, totaled $91.5 million (the “Territory Conversion Fee”). The Territory Conversion Fee was recorded as a deferred liability and will be amortized as a reduction to cost of sales over a period of 40 years. The portion of the deferred liability that is expected to be amortized in the next twelve months was classified as current. |
Other Accrued Liabilities - S_2
Other Accrued Liabilities - Summary of Other Accrued Liabilities (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Jul. 02, 2017 | Sep. 30, 2018 | |
Other Accrued Liablities [Line Items] | ||
Amortization period as reduction to cost of sales | 40 years | |
CCR [Member] | ||
Other Accrued Liablities [Line Items] | ||
One time fee received pursuant to territory conversion agreement | $ 91.5 |
Debt - Summary of Debt (Detail)
Debt - Summary of Debt (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Debt issuance costs | $ (3,185) | $ (3,580) |
Total debt | 1,194,109 | 1,088,018 |
Long-term debt | $ 1,194,109 | 1,088,018 |
Revolving Credit Facility [Member] | Non-public [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Jun. 8, 2023 | |
Line of credit | $ 170,000 | 207,000 |
Interest Rate, Term | Variable | |
Interest Paid | Varies | |
7.00% Senior Notes 4/15/2019 [Member] | Public [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Apr. 15, 2019 | |
Interest Rate | 7.00% | |
Senior Notes | $ 110,000 | 110,000 |
Unamortized discount on Senior Notes | $ (143) | (332) |
Interest Paid | Semi-annually | |
Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Jun. 7, 2021 | |
Term Loan Facility [Member] | Non-public [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Jun. 7, 2021 | |
Term Loan Facility(1) | $ 292,500 | 300,000 |
Interest Rate, Term | Variable | |
Interest Paid | Varies | |
3.28% Senior Notes 2/27/2023 [Member] | Non-public [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Feb. 27, 2023 | |
Interest Rate | 3.28% | |
Senior Notes | $ 125,000 | 125,000 |
Interest Paid | Semi-annually | |
3.80% Senior Notes 11/25/2025 [Member] | Public [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Nov. 25, 2025 | |
Interest Rate | 3.80% | |
Senior Notes | $ 350,000 | 350,000 |
Unamortized discount on Senior Notes | $ (63) | $ (70) |
Interest Paid | Semi-annually | |
3.96% Senior Notes 3/21/2030 [Member] | Non-public [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Mar. 21, 2030 | |
Interest Rate | 3.96% | |
Senior Notes | $ 150,000 | |
Interest Paid | Quarterly |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 9 Months Ended | |||||
Sep. 30, 2018 | Jun. 08, 2018 | Mar. 21, 2018 | Dec. 31, 2017 | Feb. 28, 2017 | Jun. 07, 2016 | |
Debt Instrument [Line Items] | ||||||
Company's outstanding obligations for capital leases | $ 37,300,000 | $ 43,500,000 | ||||
Debt issued by subsidiaries | 0 | |||||
Guarantees of company debt | $ 0 | |||||
Senior Unsecured Notes Due in 2030 [Member] | NYL Investors LLC and Certain of Its Affiliates [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date of debt instruments | Mar. 21, 2030 | |||||
Senior notes, face amount | $ 150,000,000 | |||||
Debt instrument, interest rate | 3.96% | |||||
Debt instrument, frequency of periodic payment | quarterly | |||||
Senior Unsecured Notes Due in 2023 [Member] | PGIM, Inc and Certain of Its Affiliates [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate maximum borrowing capacity | $ 175,000,000 | |||||
Maturity date of debt instruments | Feb. 27, 2023 | |||||
Senior notes, face amount | $ 125,000,000 | |||||
Debt instrument, interest rate | 3.28% | |||||
Debt instrument, frequency of periodic payment | semi-annually | |||||
Term Loan Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate maximum borrowing capacity | $ 500,000,000 | |||||
Maturity date of debt instruments | Jun. 7, 2021 | |||||
Senior notes, face amount | $ 300,000,000 | |||||
Period of unsecured term loan agreement | 5 years | |||||
Revolving Credit Facility [Member] | Second Amended and Restated Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate maximum borrowing capacity | $ 500,000,000 | |||||
Period of unsecured revolving credit agreement | 5 years | |||||
Line of credit facility maximum borrowing capacity increased amount subject to obtaining commitments | $ 750,000,000 | |||||
Maturity date of debt instruments | Jun. 8, 2023 | |||||
Annual facility fee, percentage | 0.15% |
Derivative Financial Instrume_3
Derivative Financial Instruments - Summary of Pre-Tax Changes in Fair Value (Detail) - Commodity Contract [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain (loss) | $ (469) | $ 3,401 | $ (3,139) | $ 2,541 |
Cost of Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain (loss) | (260) | 2,042 | (2,776) | 2,066 |
Selling, Delivery and Administrative Expenses [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain (loss) | $ (209) | $ 1,359 | $ (363) | $ 475 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Summary of Fair Values and Classification in Consolidated Condensed Balance Sheets of Derivative Instruments (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Total assets | $ 1,281 | $ 4,420 |
Commodity Contract [Member] | Not Designated as Hedging Instruments [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Assets: | ||
Total assets | 1,047 | $ 4,420 |
Commodity Contract [Member] | Not Designated as Hedging Instruments [Member] | Other Assets [Member] | ||
Assets: | ||
Total assets | $ 234 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Summary of Gross Derivative Assets and Gross Derivative Liabilities in Consolidated Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Gross derivative assets | $ 15,633 | $ 4,481 |
Gross derivative liabilities | $ 14,352 | $ 61 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Summary of Outstanding Commodity Derivative Agreements (Detail) - Commodity Hedging Agreements [Member] - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Notional amount of outstanding commodity derivative agreements | $ 143,282,000 | $ 59,564,000 |
Latest maturity date of outstanding commodity derivative agreements | 2019-12 | 2018-12 |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | Dec. 31, 2017 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 0 | 0 | 0 | 0 | 0 |
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount | 0 | 0 | 0 | 0 | 0 |
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount | 0 | 0 | 0 | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | 0 | 0 | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net | $ 0 | $ 0 | 0 | $ 0 | $ 0 |
Amount payable annually under acquisition related contingent consideration arrangements, value, low | 25,000,000 | ||||
Amount payable annually under acquisition related contingent consideration arrangements, value, high | $ 47,000,000 | ||||
Distribution Agreements [Member] | Maximum [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Estimated useful life | 40 years | ||||
Distribution Agreements [Member] | Minimum [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Estimated useful life | 20 years |
Fair Values of Financial Inst_4
Fair Values of Financial Instruments - Deferred Compensation Plan Commodity Hedging Agreements and Acquisition Related Contingent Consideration (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Jul. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Jan. 01, 2017 |
Assets: | ||||||
Commodity hedging agreements | $ 1,281 | $ 4,420 | ||||
Fair Value Level 1 [Member] | ||||||
Assets: | ||||||
Deferred compensation plan assets | 36,291 | 33,166 | ||||
Liabilities: | ||||||
Deferred compensation plan liabilities | 36,291 | 33,166 | ||||
Fair Value Level 2 [Member] | ||||||
Liabilities: | ||||||
Non-public variable rate debt | 462,500 | 507,000 | ||||
Non-public fixed rate debt | 256,200 | 126,400 | ||||
Public debt securities | 457,800 | 475,100 | ||||
Fair Value Level 2 [Member] | Commodity Contract [Member] | ||||||
Assets: | ||||||
Commodity hedging agreements | 1,281 | 4,420 | ||||
Fair Value Level 3 [Member] | ||||||
Liabilities: | ||||||
Acquisition related contingent consideration | 363,836 | $ 374,537 | 381,291 | $ 308,933 | $ 319,102 | $ 253,437 |
Carrying Amount [Member] | ||||||
Assets: | ||||||
Deferred compensation plan assets | 36,291 | 33,166 | ||||
Liabilities: | ||||||
Deferred compensation plan liabilities | 36,291 | 33,166 | ||||
Non-public variable rate debt | 462,031 | 506,398 | ||||
Non-public fixed rate debt | 274,697 | 124,829 | ||||
Public debt securities | 457,381 | 456,791 | ||||
Acquisition related contingent consideration | 363,836 | 381,291 | ||||
Carrying Amount [Member] | Commodity Contract [Member] | ||||||
Assets: | ||||||
Commodity hedging agreements | 1,281 | 4,420 | ||||
Total Fair Value [Member] | ||||||
Assets: | ||||||
Deferred compensation plan assets | 36,291 | 33,166 | ||||
Liabilities: | ||||||
Deferred compensation plan liabilities | 36,291 | 33,166 | ||||
Acquisition related contingent consideration | 363,836 | 381,291 | ||||
Non-public variable rate debt | 462,500 | 507,000 | ||||
Non-public fixed rate debt | 256,200 | 126,400 | ||||
Public debt securities | 457,800 | 475,100 | ||||
Total Fair Value [Member] | Commodity Contract [Member] | ||||||
Assets: | ||||||
Commodity hedging agreements | $ 1,281 | $ 4,420 |
Fair Values of Financial Inst_5
Fair Values of Financial Instruments - Summary of Reconciliation of Acquisition Related Contingent Consideration (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Payment of acquisition related contingent consideration | $ 18,312 | $ 11,650 | |||
(Favorable)/unfavorable fair value adjustment | 1,584 | 23,140 | |||
Level 3 [Member] | |||||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance - Level 3 liability | $ 374,537 | $ 319,102 | 381,291 | 253,437 | |
Measurement period adjustments | [1] | (1,279) | 813 | ||
Payment of acquisition related contingent consideration | (7,049) | (5,094) | (18,312) | (11,650) | |
Reclassification to current payables | 150 | (1,540) | (2,080) | ||
(Favorable)/unfavorable fair value adjustment | (2,373) | (5,225) | 1,584 | 23,140 | |
Ending balance - Level 3 liability | $ 363,836 | $ 308,933 | $ 363,836 | 308,933 | |
Level 3 [Member] | System Transformation Transactions [Member] | |||||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Increase due to acquisitions | $ 46,086 | ||||
[1] | Measurement period adjustments relate to post-closing adjustments made in relation to the April 2017 Transactions and the October 2017 Transactions in accordance with the terms and conditions of the applicable asset purchase agreement or asset exchange agreement. See Note 3 to the consolidated condensed financial statements for additional information on the System Transformation Transactions. |
Other Liabilities - Summary of
Other Liabilities - Summary of Other Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |||
Non-current portion of acquisition related contingent consideration | $ 338,530 | $ 357,952 | |
Accruals for executive benefit plans | 128,079 | 125,791 | |
Non-current deferred proceeds from Territory Conversion Fee | 85,734 | 87,449 | |
Non-current deferred proceeds from Legacy Facilities Credit | [1] | 30,568 | 29,881 |
Other | 17,399 | 19,506 | |
Total other liabilities | $ 600,310 | $ 620,579 | |
[1] | In December 2017, The CocaCola Company agreed to provide the Company a one-time fee, which, after final adjustments made during the third quarter of 2018, totaled $44.3 million (the “Legacy Facilities Credit”). The Legacy Facilities Credit compensated the Company for the net economic impact of changes made by The CocaCola Company to the authorized pricing on sales of covered beverages produced at the manufacturing facilities owned by Company prior to the System Transformation and sold to The CocaCola Company and certain U.S. CocaCola bottlers pursuant to new pricing mechanisms included in the regional manufacturing agreement entered into by the Company and The CocaCola Company on March 31, 2017, as amended. The Company immediately recognized the portion of the Legacy Facilities Credit applicable to a regional manufacturing facility in Mobile, Alabama which the Company transferred to CCR as part of the CCR Exchange Transaction. The remaining balance of the Legacy Facilities Credit will be amortized as a reduction to cost of sales over a period of 40 years. |
Other Liabilities - Summary o_2
Other Liabilities - Summary of Other Liabilities (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Other Liabilities Disclosure [Line Items] | ||
Amortization period of Legacy facilities credit as reduction to cost of sales | 40 years | |
Legacy Facilities Credit [Member] | ||
Other Liabilities Disclosure [Line Items] | ||
Amount of compensation paid | $ 44.3 | |
CCR [Member] | Legacy Facilities Credit [Member] | ||
Other Liabilities Disclosure [Line Items] | ||
Amortization period of Legacy facilities credit as reduction to cost of sales | 40 years |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018USD ($)Product | Oct. 01, 2017USD ($)Product | Dec. 31, 2017USD ($) | |
Loss Contingencies [Line Items] | |||
Letters of credit totaled | $ 35,600,000 | $ 35,600,000 | |
Long-term marketing contractual arrangements | 160,000,000 | ||
SAC [Member] | |||
Loss Contingencies [Line Items] | |||
Proceeds from management fees received from SAC | $ 6,800,000 | $ 6,900,000 | |
Cases of finished product obligated to purchase on an annual basis | Product | 17,500,000 | ||
Purchased number of cases finished product from SAC | Product | 22,200,000 | 22,600,000 | |
Debt guarantee for related party | $ 23,900,000 | 23,900,000 | |
Guaranteed portion of SAC's and Southeastern's debt, collateral held | The Company holds no assets as collateral against the SAC guarantee | ||
Impairment of investments | $ 0 | $ 0 | |
Southeastern [Member] | |||
Loss Contingencies [Line Items] | |||
Purchase requirements of plastic bottles | 80.00% |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Company's Purchases from Manufacturing Cooperatives (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | |
Loss Contingencies [Line Items] | ||||
Total purchases from manufacturing cooperatives | $ 70,948 | $ 66,611 | $ 210,342 | $ 191,709 |
SAC [Member] | ||||
Loss Contingencies [Line Items] | ||||
Total purchases from manufacturing cooperatives | 38,569 | 37,267 | 117,729 | 111,408 |
Southeastern [Member] | ||||
Loss Contingencies [Line Items] | ||||
Total purchases from manufacturing cooperatives | $ 32,379 | $ 29,344 | $ 92,613 | $ 80,301 |
Commitments and Contingencies_3
Commitments and Contingencies - Summary of Maximum Exposure under Guarantee (Detail) - SAC [Member] $ in Thousands | Sep. 30, 2018USD ($) | |
Loss Contingencies [Line Items] | ||
Maximum guaranteed debt | $ 23,938 | |
Equity investments | 8,175 | [1] |
Maximum total exposure, including equity investments | $ 32,113 | |
[1] | Recorded in other assets on the Company’s consolidated condensed balance sheets. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2018 | Oct. 01, 2017 | Dec. 31, 2017 | |
Income Tax [Line Items] | ||||
Effective income tax rate | 24.10% | 34.80% | ||
Effective income tax rate with noncontrolling interest | 32.50% | 38.80% | ||
Provisional tax benefit related to re-measurement of net deferred tax liability | $ 1,900,000 | $ 69,000,000 | ||
Uncertain tax positions | 3,000,000 | $ 3,000,000 | 2,400,000 | |
Uncertain tax positions that would affect tax rate | 3,000,000 | 3,000,000 | $ 2,400,000 | |
Change in uncertain tax positions, expected material impact on consolidated condensed financial statements | $ 0 | $ 0 | ||
Earliest Tax Year [Member] | Internal Revenue Service (IRS) [Member] | ||||
Income Tax [Line Items] | ||||
Tax year open for examination | 2,002 | |||
Earliest Tax Year [Member] | State and Local Jurisdiction [Member] | ||||
Income Tax [Line Items] | ||||
Tax year open for examination | 1,998 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Summary of Accumulated Other Comprehensive (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | $ 458,907 | $ 363,024 | |||
Pre-tax Activity | $ 975 | $ 728 | 2,919 | 2,186 | |
Tax Effect | (241) | (281) | (720) | (843) | |
Ending Balance | 468,563 | 383,116 | 468,563 | 383,116 | |
Foreign Currency Translation Adjustment [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | 8 | 5 | 14 | (11) | |
Pre-tax Activity | (2) | 11 | (10) | 37 | |
Tax Effect | 1 | (4) | 3 | (14) | |
Ending Balance | 7 | 12 | 7 | 12 | |
Accumulated Other Comprehensive Loss [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | (92,737) | (92,001) | (94,202) | (92,897) | |
Ending Balance | (92,003) | (91,554) | (92,003) | (91,554) | |
Net Pension Activity [Member] | Actuarial Loss [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | (77,212) | (71,402) | (78,618) | (72,393) | |
Pre-tax Activity | 934 | 807 | 2,800 | 2,421 | |
Tax Effect | (231) | (311) | (691) | (934) | |
Ending Balance | (76,509) | (70,906) | (76,509) | (70,906) | |
Net Pension Activity [Member] | Prior Service Costs [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | (34) | (52) | (43) | (61) | |
Pre-tax Activity | 6 | 7 | 18 | 21 | |
Tax Effect | (2) | (3) | (5) | (8) | |
Ending Balance | (30) | (48) | (30) | (48) | |
Net Postretirement Benefits Activity [Member] | October 2017 Divestitures [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | [1] | 6,220 | 6,220 | ||
Ending Balance | [1] | 6,220 | 6,220 | ||
Net Postretirement Benefits Activity [Member] | Actuarial Loss [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | (22,767) | (23,315) | (23,519) | (24,111) | |
Pre-tax Activity | 499 | 648 | 1,497 | 1,944 | |
Tax Effect | (123) | (250) | (369) | (750) | |
Ending Balance | (22,391) | (22,917) | (22,391) | (22,917) | |
Net Postretirement Benefits Activity [Member] | Prior Service Costs [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | 1,048 | 2,763 | 1,744 | 3,679 | |
Pre-tax Activity | (462) | (745) | (1,386) | (2,237) | |
Tax Effect | 114 | 287 | 342 | 863 | |
Ending Balance | $ 700 | $ 2,305 | $ 700 | $ 2,305 | |
[1] | Recognized loss due to the divestiture of the Deep South and Somerset Exchange Business and the Florence and Laurel Distribution Business during the fourth quarter of 2017. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Summary of Impact of Accumulated Other Comprehensive Income (Loss) on Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales | $ 791,317 | $ 752,202 | $ 2,313,728 | $ 2,039,996 |
Selling, delivery and administrative expenses | 375,940 | 372,852 | 1,152,183 | 1,056,446 |
Subtotal pre-tax | (43,443) | (30,659) | (14,027) | (33,875) |
Income tax expense | 16,493 | 11,748 | 3,387 | 11,800 |
Total after tax effect | (25,164) | (17,316) | (7,046) | (18,613) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales | 223 | 150 | 667 | 433 |
Selling, delivery and administrative expenses | 752 | 578 | 2,252 | 1,752 |
Subtotal pre-tax | 975 | 728 | 2,919 | 2,185 |
Income tax expense | 241 | 281 | 720 | 842 |
Total after tax effect | 734 | 447 | 2,199 | 1,343 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Foreign Currency Translation Adjustment [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Selling, delivery and administrative expenses | (2) | 11 | (10) | 37 |
Subtotal pre-tax | (2) | 11 | (10) | 37 |
Income tax expense | (1) | 4 | (3) | 14 |
Total after tax effect | (1) | 7 | (7) | 23 |
Net Pension Activity [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales | 217 | 171 | 648 | 497 |
Selling, delivery and administrative expenses | 723 | 643 | 2,170 | 1,945 |
Subtotal pre-tax | 940 | 814 | 2,818 | 2,442 |
Income tax expense | 233 | 314 | 696 | 942 |
Total after tax effect | 707 | 500 | 2,122 | 1,500 |
Net Postretirement Benefits Activity [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales | 6 | (21) | 19 | (64) |
Selling, delivery and administrative expenses | 31 | (76) | 92 | (230) |
Subtotal pre-tax | 37 | (97) | 111 | (294) |
Income tax expense | 9 | (37) | 27 | (114) |
Total after tax effect | $ 28 | $ (60) | $ 84 | $ (180) |
Capital Transactions - Summary
Capital Transactions - Summary of the Awards Each Year (Detail) - Class B Common Stock [Member] - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 01, 2017 | |
Schedule of Capitalization, Equity [Line Items] | ||
Date of approval for award | Mar. 6, 2018 | Mar. 7, 2017 |
Fiscal year of service covered by award | 2,017 | 2,016 |
Shares settled in cash to satisfy tax withholding obligations | 16,504 | 18,980 |
Increase in Class B Common Stock shares outstanding | 20,296 | 21,020 |
Total Class B Common Stock awarded | 36,800 | 40,000 |
Capital Transactions - Summar_2
Capital Transactions - Summary of Compensation Expense for the Awards Issued Pursuant to the Performance Unit Award Agreement (Detail) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Oct. 01, 2017 | |
Statement Of Stockholders Equity [Abstract] | ||
Total compensation expense | $ 4,494 | $ 6,473 |
Share price for compensation expense | $ 182.28 | $ 215.75 |
Share price date for compensation expense | Sep. 28, 2018 | Sep. 29, 2017 |
Capital Transactions - Addition
Capital Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Oct. 01, 2017 | |
Capital Transactions [Line Items] | ||
Share based compensation | $ 4,494 | $ 6,473 |
Long-Term Performance Equity Plan [Member] | ||
Capital Transactions [Line Items] | ||
Award settled in cash or shares, average closing prices of shares during trading days of performance period | 20 days | |
Long-Term Performance Equity Plan [Member] | Selling, Delivery and Administrative Expenses [Member] | ||
Capital Transactions [Line Items] | ||
Share based compensation | $ 1,500 |
Pension and Postretirement Be_3
Pension and Postretirement Benefit Obligations - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018USD ($)Benefit_Plan | Sep. 30, 2018Benefit_Plan | Dec. 30, 2018USD ($) | |
Rehabilitation Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Multi-employer pension plan Rehabilitation Plan adoption effective date | Jan. 1, 2015 | ||
Collective bargaining agreement, effective date | Apr. 28, 2014 | ||
Employer-Teamsters and Pension Trust Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Multi-employer plans collective bargaining remainder of arrangements, expiration date | Apr. 30, 2020 | ||
Net Pension Activity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of company-sponsored pension plans | Benefit_Plan | 2 | 2 | |
Entity contribution to pension plans during the period | $ 20,000,000 | ||
Net Pension Activity [Member] | Scenario Forecast [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit pension plan, contributions | $ 0 |
Pension and Postretirement Be_4
Pension and Postretirement Benefit Obligations - Components of Net Periodic Pension Cost (Detail) - Pension Plans [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1,412 | $ 150 | $ 4,237 | $ 450 |
Interest cost | 2,856 | 2,978 | 8,568 | 8,936 |
Expected return on plan assets | (3,853) | (3,399) | (11,557) | (10,197) |
Recognized net actuarial loss | 934 | 807 | 2,800 | 2,421 |
Amortization of prior service cost | 6 | 7 | 18 | 21 |
Net periodic benefit cost | $ 1,355 | $ 543 | $ 4,066 | $ 1,631 |
Pension and Postretirement Be_5
Pension and Postretirement Benefit Obligations - Components of Net Periodic Postretirement Benefit Cost (Detail) - Net Postretirement Benefits Activity [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 502 | $ 572 | $ 1,507 | $ 1,716 |
Interest cost | 696 | 910 | 2,088 | 2,732 |
Recognized net actuarial loss | 499 | 648 | 1,497 | 1,944 |
Amortization of prior service cost | (462) | (745) | (1,386) | (2,237) |
Net periodic benefit cost | $ 1,235 | $ 1,385 | $ 3,706 | $ 4,155 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 02, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | ||||
Payment of acquisition related contingent consideration | $ 18,312 | $ 11,650 | ||
Payment to The Coca-Cola Company | 15,598 | |||
Accounts receivable from The Coca-Cola Company | 62,541 | $ 65,996 | ||
Capital contribution in CONA Services LLC | $ 2,098 | 1,976 | ||
Glaceau Distribution Termination Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Payment to The Coca-Cola Company | $ 15,600 | |||
The Coca-Cola Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Percentage of interest held in outstanding common stock by The Coca-Cola Company | 27.00% | |||
Voting power of stock held by related party | 5.00% | |||
Payment to The Coca-Cola Company | 15,598 | |||
Harrison Family [Member] | ||||
Related Party Transaction [Line Items] | ||||
Voting power of stock held by related party | 86.00% | |||
CCR [Member] | Comprehensive Beverage Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Payment of acquisition related contingent consideration | $ 18,300 | 11,700 | ||
CCBSS [Member] | ||||
Related Party Transaction [Line Items] | ||||
Accounts receivable from The Coca-Cola Company | 13,900 | $ 11,200 | ||
Administrative fees due to CCBSS | 2,200 | 2,000 | ||
NPSG [Member] | ||||
Related Party Transaction [Line Items] | ||||
Operating costs | $ 900 | 800 | ||
CONA [Member] | ||||
Related Party Transaction [Line Items] | ||||
Percentage interest in subsidiary | 20.00% | |||
Percentage required for approval of decision | 80.00% | |||
Capital contribution in CONA Services LLC | $ 2,100 | 2,000 | ||
Service fees | $ 15,500 | $ 9,200 | ||
Beacon Investment Corporation [Member] | ||||
Related Party Transaction [Line Items] | ||||
Lease expiration date | Dec. 31, 2021 | |||
HLP, SPC & Adjacent Sales Facility [Member] | ||||
Related Party Transaction [Line Items] | ||||
Lease expiration date | Dec. 31, 2020 |
Related Party Transactions - Su
Related Party Transactions - Summary of Significant Transactions between Company and The Coca-Cola Company (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | |
Related Party Transaction [Line Items] | ||||
Glacéau distribution agreement consideration | $ 15,598 | |||
Cold drink equipment | $ 3,789 | 8,400 | ||
The Coca-Cola Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Concentrate, syrup, sweetener and other purchases | $ 341,949 | $ 317,040 | 904,244 | 806,256 |
Customer marketing programs | 34,005 | 27,855 | 110,062 | 102,095 |
Cold drink equipment parts | 7,958 | 6,881 | 22,188 | 18,968 |
Glacéau distribution agreement consideration | 15,598 | |||
Proceeds from Territory Conversion Fee | 87,066 | |||
Marketing funding support payments | 22,632 | 22,074 | 65,325 | 62,235 |
Fountain delivery and equipment repair fees | 10,199 | 9,286 | 29,899 | 26,138 |
Facilitating the distribution of certain brands and packages to other Coca-Cola bottlers | 1,937 | 1,773 | 7,663 | 6,881 |
Presence marketing funding support on the Company’s behalf | $ 1,108 | $ 2,707 | 6,203 | 3,844 |
Cold drink equipment | $ 3,789 | $ 8,400 |
Related Party Transactions - _2
Related Party Transactions - Summarizes Purchases and Sales Arrangements between the Company and CCR (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | |
Related Party Transaction [Line Items] | ||||
Purchases from | $ 70,948 | $ 66,611 | $ 210,342 | $ 191,709 |
CCR [Member] | Production Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchases from | 20,157 | 110,451 | ||
Gross sales to | $ 11,873 | $ 72,930 |
Related Party Transactions - _3
Related Party Transactions - Summary of Liability to Estimated Fair Value of Contingent Consideration (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||
Current portion of acquisition related contingent consideration | $ 25,306 | $ 23,339 |
Non-current portion of acquisition related contingent consideration | 338,530 | 357,952 |
CCR [Member] | Comprehensive Beverage Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Current portion of acquisition related contingent consideration | 25,306 | 23,339 |
Non-current portion of acquisition related contingent consideration | 338,530 | 357,952 |
Total acquisition related contingent consideration | $ 363,836 | $ 381,291 |
Related Party Transactions - _4
Related Party Transactions - Summary of Principal Balance Outstanding under Related Party Capital Leases (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||
Principal balance outstanding under capital lease | $ 37,300 | $ 43,500 |
Beacon Investment Corporation [Member] | ||
Related Party Transaction [Line Items] | ||
Principal balance outstanding under capital lease | 10,597 | 12,771 |
HLP, SPC & Adjacent Sales Facility [Member] | ||
Related Party Transaction [Line Items] | ||
Principal balance outstanding under capital lease | $ 9,033 | $ 11,612 |
Related Party Transactions - _5
Related Party Transactions - Summary of Rental Payments Related to Capital Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | |
Beacon Investment Corporation [Member] | ||||
Related Party Transaction [Line Items] | ||||
Rental payments related to capital leases | $ 1,110 | $ 1,091 | $ 3,346 | $ 3,294 |
HLP, SPC & Adjacent Sales Facility [Member] | ||||
Related Party Transaction [Line Items] | ||||
Rental payments related to capital leases | $ 1,049 | $ 1,018 | $ 3,147 | $ 3,055 |
Net Income Per Share - Computat
Net Income Per Share - Computation of Basic Net Income Per Share and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | |
Numerator for basic and diluted net income per Common Stock and Class B Common Stock share: | ||||
Net income attributable to Coca-Cola Bottling Co. Consolidated | $ 25,164 | $ 17,316 | $ 7,046 | $ 18,613 |
Less dividends: | ||||
Dividends on Common Stock | 1,787 | 1,785 | 5,357 | 5,356 |
Total undistributed earnings – basic | 22,821 | 14,983 | 32 | 11,618 |
Total undistributed earnings – diluted | 22,821 | 14,983 | 32 | 11,618 |
Numerator for basic net income per Common Stock share: | ||||
Numerator for basic net income per Common Stock share | 19,209 | 13,248 | 5,381 | 14,249 |
Numerator for diluted net income per Common Stock share: | ||||
Numerator for diluted net income per Common Stock share | $ 25,164 | $ 17,316 | $ 7,046 | $ 18,613 |
Denominator for diluted net income per Common share: | ||||
Weighted average number of Common Stock shares outstanding | 7,141 | 7,141 | 7,141 | 7,141 |
Denominator for diluted net income per Common share: | ||||
Weighted average number of Common Stock shares outstanding – assuming dilution | 9,405 | 9,374 | 9,400 | 9,369 |
Basic net income per share: | ||||
Common Stock | $ 2.69 | $ 1.86 | $ 0.75 | $ 2 |
Diluted net income per share: | ||||
Common Stock | $ 2.69 | $ 1.85 | $ 0.75 | $ 1.99 |
Common Stock [Member] | ||||
Less dividends: | ||||
Total undistributed earnings – basic | $ 17,422 | $ 11,463 | $ 24 | $ 8,893 |
Total undistributed earnings – diluted | 17,327 | 11,414 | 24 | 8,855 |
Class B Common Stock [Member] | ||||
Less dividends: | ||||
Dividends on Common Stock | 556 | 548 | 1,657 | 1,639 |
Total undistributed earnings – basic | 5,399 | 3,520 | 8 | 2,725 |
Total undistributed earnings – diluted | 5,494 | 3,569 | 8 | 2,763 |
Numerator for basic net income per Common Stock share: | ||||
Numerator for basic net income per Common Stock share | 5,955 | 4,068 | 1,665 | 4,364 |
Numerator for diluted net income per Common Stock share: | ||||
Numerator for diluted net income per Common Stock share | $ 6,050 | $ 4,117 | $ 1,665 | $ 4,402 |
Denominator for diluted net income per Common share: | ||||
Weighted average number of Common Stock shares outstanding | 2,213 | 2,193 | 2,208 | 2,188 |
Denominator for diluted net income per Common share: | ||||
Weighted average number of Common Stock shares outstanding – assuming dilution | 2,264 | 2,233 | 2,259 | 2,228 |
Basic net income per share: | ||||
Common Stock | $ 2.69 | $ 1.86 | $ 0.75 | $ 2 |
Diluted net income per share: | ||||
Common Stock | $ 2.68 | $ 1.84 | $ 0.74 | $ 1.97 |
Net Income Per Share - Comput_2
Net Income Per Share - Computation of Basic Net Income Per Share and Diluted Net Income Per Share (Parenthetical) (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | |
Earnings Per Share [Abstract] | ||||
Percentage undistributed earnings allocated to common stock diluted | 100.00% | 100.00% | 100.00% | 100.00% |
Anti-dilutive shares | 0 | 0 | 0 | 0 |
Supplemental Disclosures of C_3
Supplemental Disclosures of Cash Flow Information - Summary of Changes in Current Assets and Current Liabilities Affecting Cash Flows (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Oct. 01, 2017 | |
Supplemental Cash Flow Elements [Abstract] | ||
Accounts receivable, trade, net | $ (34,899) | $ (109,023) |
Accounts receivable from The Coca-Cola Company | (2,083) | 1,548 |
Accounts receivable, other | 10,328 | (8,308) |
Inventories | (46,274) | (19,254) |
Prepaid expenses and other current assets | 8,951 | (281) |
Accounts payable, trade | 3,749 | 67,058 |
Accounts payable to The Coca-Cola Company | (15,222) | 45,722 |
Other accrued liabilities | (33,712) | 7,924 |
Accrued compensation | (15,496) | (10,062) |
Accrued interest payable | 4,237 | 5,640 |
Change in current assets less current liabilities (exclusive of acquisitions) | $ (120,421) | $ (19,036) |
Segments - Additional Informati
Segments - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2018Segment | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 4 |
All Other [Member] | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 3 |
Segments - Summary of Financial
Segments - Summary of Financial Information by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | ||
Net sales: | |||||
Net sales | $ 1,211,661 | $ 1,162,526 | $ 3,510,997 | $ 3,197,519 | |
Income from operations: | |||||
Income from operations | 44,404 | 37,472 | 45,086 | 101,077 | |
Depreciation and amortization: | |||||
Depreciation and amortization | 46,589 | 43,246 | 140,496 | 120,293 | |
Operating Segments [Member] | Nonalcoholic Beverages [Member] | |||||
Net sales: | |||||
Net sales | [1] | 1,180,212 | 1,142,238 | 3,427,492 | 3,139,974 |
Income from operations: | |||||
Income from operations | 39,361 | 33,867 | 32,705 | 90,254 | |
Depreciation and amortization: | |||||
Depreciation and amortization | 44,050 | 41,151 | 133,095 | 114,166 | |
Operating Segments [Member] | All Other [Member] | |||||
Net sales: | |||||
Net sales | [1] | 93,493 | 81,439 | 273,490 | 220,734 |
Income from operations: | |||||
Income from operations | 5,043 | 3,605 | 12,381 | 10,823 | |
Depreciation and amortization: | |||||
Depreciation and amortization | 2,539 | 2,095 | 7,401 | 6,127 | |
Eliminations [Member] | |||||
Net sales: | |||||
Net sales | [2] | $ (62,044) | $ (61,151) | $ (189,985) | $ (163,189) |
[1] | In order to correct an error in the prior year segment presentation, the Company revised net sales by $39.2 million for the third quarter of 2017 and $96.4 million for the first three quarters of 2017 to reflect sales in the Nonalcoholic Beverages segment which were previously attributed to All Other. Total net sales remain unchanged in prior periods and these revisions were not considered material to the prior periods presented. | ||||
[2] | The entire net sales elimination for each period presented represents net sales from All Other to the Nonalcoholic Beverages segment. Sales between these segments are recognized at either fair market value or cost depending on the nature of the transaction. |
Segments - Summary of Financi_2
Segments - Summary of Financial Information by Segment (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Oct. 01, 2017 | Sep. 30, 2018 | Oct. 01, 2017 | ||
Segment Reporting Information [Line Items] | |||||
Net sales | $ 1,211,661 | $ 1,162,526 | $ 3,510,997 | $ 3,197,519 | |
Operating Segments [Member] | Nonalcoholic Beverages [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | [1] | 1,180,212 | 1,142,238 | 3,427,492 | 3,139,974 |
Operating Segments [Member] | All Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | [1] | $ 93,493 | 81,439 | $ 273,490 | 220,734 |
Adjustment [Member] | Operating Segments [Member] | Nonalcoholic Beverages [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 39,200 | 96,400 | |||
Adjustment [Member] | Operating Segments [Member] | All Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | $ (39,200) | $ (96,400) | |||
[1] | In order to correct an error in the prior year segment presentation, the Company revised net sales by $39.2 million for the third quarter of 2017 and $96.4 million for the first three quarters of 2017 to reflect sales in the Nonalcoholic Beverages segment which were previously attributed to All Other. Total net sales remain unchanged in prior periods and these revisions were not considered material to the prior periods presented. |