Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 12, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ESND | ||
Entity Registrant Name | ESSENDANT INC | ||
Entity Central Index Key | 355,999 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 37,286,573 | ||
Entity Public Float | $ 1,426 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | [1] | Dec. 31, 2013 | [1] | |
Income Statement [Abstract] | |||||
Net sales | $ 5,363,046 | $ 5,327,205 | $ 5,085,293 | ||
Cost of goods sold | 4,526,551 | 4,524,676 | 4,297,952 | ||
Gross profit | 836,495 | 802,529 | 787,341 | ||
Operating expenses: | |||||
Warehousing, marketing and administrative expenses | 675,913 | 595,673 | 578,958 | ||
Impairments of goodwill and intangible assets | 129,338 | 9,034 | 1,183 | ||
Loss (gain) on disposition of business | 1,461 | (800) | |||
Operating income | 29,783 | 198,622 | 207,200 | ||
Interest expense | 20,580 | 16,234 | 12,233 | ||
Interest income | (996) | (500) | (593) | ||
Income before income taxes | 10,199 | 182,888 | 195,560 | ||
Income tax expense | 54,541 | 70,773 | 73,507 | ||
Net income (loss) | $ (44,342) | $ 112,115 | $ 122,053 | ||
Net income (loss) per share - basic: | |||||
Net income (loss) per share - basic | $ (1.18) | $ 2.90 | $ 3.08 | ||
Average number of common shares outstanding - basic | 37,457 | 38,705 | 39,650 | ||
Net income (loss) per share - diluted: | |||||
Net income (loss) per share - diluted | $ (1.18) | $ 2.87 | $ 3.03 | ||
Average number of common shares outstanding - diluted | 37,457 | 39,130 | 40,236 | ||
Dividends declared per share | $ 0.56 | $ 0.56 | $ 0.56 | ||
[1] | Revised in the third quarter of 2015 for the impact of the changes in accounting principle related to inventory accounting and debt transaction costs. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | [1] | Dec. 31, 2013 | [1] | |
Statement Of Income And Comprehensive Income [Abstract] | |||||
Net income (loss) | $ (44,342) | $ 112,115 | $ 122,053 | ||
Other comprehensive (loss) income, net of tax | |||||
Translation adjustments | (9,075) | (5,262) | (901) | ||
Translation loss realized through disposition of business | 11,132 | ||||
Minimum pension liability adjustments | 3,271 | (17,044) | 13,194 | ||
Cash flow hedge adjustments | (128) | (597) | 1,584 | ||
Total other comprehensive (loss) income, net of tax | 5,200 | (22,903) | 13,877 | ||
Comprehensive income (loss) | $ (39,142) | $ 89,212 | $ 135,930 | ||
[1] | Revised in the third quarter of 2015 for the impact of the changes in accounting principle related to inventory accounting and debt transaction costs. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | [1] |
Current assets: | |||
Cash and cash equivalents | $ 29,983 | $ 20,812 | |
Accounts receivable, less allowance for doubtful accounts of $17,810 in 2015 and $19,725 in 2014 | 716,537 | 702,527 | |
Inventories | 922,162 | 906,430 | |
Other current assets | 27,310 | 30,713 | |
Total current assets | 1,695,992 | 1,660,482 | |
Property, plant and equipment, at cost | |||
Land | 12,968 | 13,105 | |
Buildings | 61,777 | 62,370 | |
Fixtures and equipment | 342,339 | 331,163 | |
Leasehold improvements | 31,082 | 29,841 | |
Capitalized software costs | 98,873 | 91,624 | |
Total property, plant and equipment | 547,039 | 528,103 | |
Less: accumulated depreciation and amortization | 413,288 | 389,886 | |
Net property, plant equipment | 133,751 | 138,217 | |
Intangible assets, net | 96,413 | 111,958 | |
Goodwill | 299,355 | 398,042 | |
Other long-term assets | 37,348 | 38,669 | |
Total assets | 2,262,859 | 2,347,368 | |
Current liabilities: | |||
Accounts payable | 531,949 | 485,241 | |
Accrued liabilities | 177,472 | 185,535 | |
Current maturities of long-term debt | 51 | 851 | |
Total current liabilities | 709,472 | 671,627 | |
Deferred income taxes | 11,901 | 17,763 | |
Long-term debt | 716,264 | 709,917 | |
Other long-term liabilities | 101,488 | 104,394 | |
Total liabilities | 1,539,125 | 1,503,701 | |
Stockholders’ equity: | |||
Common stock, $0.10 par value; authorized - 100,000,000 shares, issued - 74,435,628 shares in 2015 and 2014 | 7,444 | 7,444 | |
Additional paid-in capital | 410,927 | 412,291 | |
Treasury stock, at cost – 37,178,394 shares in 2015 and 35,719,041 shares in 2014 | (1,100,867) | (1,042,501) | |
Retained earnings | 1,463,821 | 1,529,224 | |
Accumulated other comprehensive loss | (57,591) | (62,791) | |
Total stockholders’ equity | 723,734 | 843,667 | |
Total liabilities and stockholders’ equity | $ 2,262,859 | $ 2,347,368 | |
[1] | Revised in the third quarter of 2015 for the impact of the changes in accounting principle related to inventory accounting and debt transaction costs. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 17,810 | $ 19,725 |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, authorized | 100,000,000 | 100,000,000 |
Common stock, issued | 74,435,628 | 74,435,628 |
Treasury stock, shares | 37,178,394 | 35,719,041 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | |
Balance at Dec. 31, 2012 | $ 733,841 | $ 7,444 | $ (963,220) | $ 404,196 | $ (53,765) | $ 1,339,186 | |
Balance (in Shares) at Dec. 31, 2012 | 74,435,628 | (34,116,220) | |||||
Net income (loss) | 122,053 | [1] | 122,053 | ||||
Unrealized translation adjustments | (901) | [1] | (901) | ||||
Minimum pension liability adjustments, net of tax benefit (loss) of $8,397, $10,853 and $1,365 in 2013, 2014 and 2015 respectively | 13,194 | [1] | 13,194 | ||||
Unrealized benefit (loss) on interest rate swaps and cash flow hedges, net of tax benefit (loss) of $1,008, $380 & $135 in 2013, 2014 & 2015 respectively | 1,584 | 1,584 | |||||
Comprehensive income (loss) | 135,930 | [1] | 13,877 | 122,053 | |||
Cash dividend declared, $0.56 per share, $0.56 per share and $0.56 per share in 2013, 2014 and 2015 respectively | (22,369) | (22,369) | |||||
Acquisition of treasury stock | (62,056) | $ (62,056) | |||||
Acquisition of treasury stock (in shares) | (1,684,365) | ||||||
Stock compensation | $ 34,800 | $ 27,042 | 7,758 | ||||
Stock compensation (in shares) | 1,086,502 | 1,086,502 | |||||
Balance at Dec. 31, 2013 | $ 820,146 | $ 7,444 | $ (998,234) | 411,954 | (39,888) | 1,438,870 | |
Balance (in Shares) at Dec. 31, 2013 | 74,435,628 | (34,714,083) | |||||
Net income (loss) | 112,115 | [1] | 112,115 | ||||
Unrealized translation adjustments | (5,262) | [1] | (5,262) | ||||
Minimum pension liability adjustments, net of tax benefit (loss) of $8,397, $10,853 and $1,365 in 2013, 2014 and 2015 respectively | (17,044) | [1] | (17,044) | ||||
Unrealized benefit (loss) on interest rate swaps and cash flow hedges, net of tax benefit (loss) of $1,008, $380 & $135 in 2013, 2014 & 2015 respectively | (597) | (597) | |||||
Comprehensive income (loss) | 89,212 | [1] | (22,903) | 112,115 | |||
Cash dividend declared, $0.56 per share, $0.56 per share and $0.56 per share in 2013, 2014 and 2015 respectively | (21,761) | (21,761) | |||||
Acquisition of treasury stock | $ (50,591) | $ (50,591) | |||||
Acquisition of treasury stock (in shares) | (1,255,705) | (1,255,705) | |||||
Stock compensation | $ 6,661 | $ 6,324 | 337 | ||||
Stock compensation (in shares) | 250,747 | 250,747 | |||||
Balance at Dec. 31, 2014 | $ 843,667 | $ 7,444 | $ (1,042,501) | 412,291 | (62,791) | 1,529,224 | |
Balance (in Shares) at Dec. 31, 2014 | 74,435,628 | (35,719,041) | |||||
Net income (loss) | (44,342) | (44,342) | |||||
Unrealized translation adjustments | (9,075) | (9,075) | |||||
Translation loss realized through disposition of business | 11,132 | 11,132 | |||||
Minimum pension liability adjustments, net of tax benefit (loss) of $8,397, $10,853 and $1,365 in 2013, 2014 and 2015 respectively | 3,271 | 3,271 | |||||
Unrealized benefit (loss) on interest rate swaps and cash flow hedges, net of tax benefit (loss) of $1,008, $380 & $135 in 2013, 2014 & 2015 respectively | (128) | (128) | |||||
Comprehensive income (loss) | (39,142) | 5,200 | (44,342) | ||||
Cash dividend declared, $0.56 per share, $0.56 per share and $0.56 per share in 2013, 2014 and 2015 respectively | (21,061) | (21,061) | |||||
Acquisition of treasury stock | $ (67,446) | $ (67,446) | |||||
Acquisition of treasury stock (in shares) | (1,822,227) | (1,822,227) | |||||
Stock compensation | $ 7,716 | $ 9,080 | (1,364) | ||||
Stock compensation (in shares) | 362,874 | 362,874 | |||||
Balance at Dec. 31, 2015 | $ 723,734 | $ 7,444 | $ (1,100,867) | $ 410,927 | $ (57,591) | $ 1,463,821 | |
Balance (in Shares) at Dec. 31, 2015 | 74,435,628 | (37,178,394) | |||||
[1] | Revised in the third quarter of 2015 for the impact of the changes in accounting principle related to inventory accounting and debt transaction costs. |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Minimum pension liability adjustment, tax benefit (loss) | $ (2,071) | $ 10,853 | $ (8,397) | ||
Unrealized benefit (loss) on interest rate swaps and cash flow hedges , tax loss (benefit) | $ (135) | $ (380) | $ 1,008 | ||
Cash dividend per share | $ 0.56 | $ 0.56 | [1] | $ 0.56 | [1] |
Accumulated Other Comprehensive Income (Loss) [Member] | |||||
Minimum pension liability adjustment, tax benefit (loss) | $ (2,071) | $ 10,853 | $ (8,397) | ||
Unrealized benefit (loss) on interest rate swaps and cash flow hedges , tax loss (benefit) | $ (135) | $ (380) | $ 1,008 | ||
Retained Earnings [Member] | |||||
Cash dividend per share | $ 0.56 | $ 0.56 | $ 0.56 | ||
[1] | Revised in the third quarter of 2015 for the impact of the changes in accounting principle related to inventory accounting and debt transaction costs. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Cash Flows From Operating Activities: | ||||||
Net income (loss) | $ (44,342) | $ 112,115 | [1] | $ 122,053 | [1] | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation | 33,532 | 32,381 | [1] | 32,153 | [1] | |
Amortization of intangible assets | 15,143 | 8,623 | [1] | 6,985 | [1] | |
Share-based compensation | 7,895 | 8,195 | [1] | 10,808 | [1] | |
Loss (gain) on the disposition of property, plant and equipment | 1,959 | 1,155 | [1] | (57) | [1] | |
Amortization of capitalized financing costs | 875 | 859 | [1] | 1,021 | [1] | |
Excess tax benefits related to share-based compensation | (479) | (1,214) | [1] | (3,977) | [1] | |
Loss on disposition of business | [1] | 8,234 | ||||
Loss on sale of equity investment | 33 | |||||
Asset impairment charge | 155,603 | 1,183 | [1] | |||
Deferred income taxes | (23,162) | (10,879) | [1] | (4,754) | [1] | |
Changes in operating assets and liabilities (net of acquisitions): | ||||||
(Increase) decrease in accounts receivable, net | (9,986) | (16,529) | [1] | 14,735 | [1] | |
(Increase) decrease in inventory | (12,467) | (18,724) | [1] | (64,677) | [1] | |
(Increase) decrease in other assets | (5,313) | (2,898) | [1] | (4,224) | [1] | |
(Decrease) increase in accounts payable | 57,416 | (42,093) | [1] | (40,634) | [1] | |
Increase (decrease) in checks in-transit | (16,087) | 1,368 | [1] | 21,348 | [1] | |
Increase (decrease) in accrued liabilities | 1,077 | 1,276 | [1] | (3,648) | [1] | |
(Decrease) increase in other liabilities | 1,037 | (4,736) | [1] | (13,578) | [1] | |
Net cash provided by operating activities | 162,734 | 77,133 | [1] | 74,737 | [1] | |
Cash Flows From Investing Activities: | ||||||
Capital expenditures | (28,325) | (24,994) | [1] | (33,789) | [1] | |
Proceeds from the disposition of property, plant and equipment | 153 | 2,767 | [1] | 3,516 | [1] | |
Proceeds from the disposition of a subsidiary | 146 | |||||
Acquisitions, net of cash acquired | (40,515) | (161,406) | [1] | |||
Sale of Equity Investment | 612 | |||||
Net cash used in investing activities | (67,929) | (183,633) | [1] | (30,273) | [1] | |
Cash Flows From Financing Activities: | ||||||
Net borrowings (repayments) under revolving credit facility | 4,577 | 155,911 | [1] | (31,378) | [1] | |
Borrowings under Receivables Securitization Program | [1] | 9,300 | 40,700 | |||
Repayment of debt | [1] | (135,000) | ||||
Proceeds from the issuance of debt | [1] | 150,000 | ||||
Net (disbursements) proceeds from share-based compensation arrangements | (770) | (2,863) | [1] | 19,895 | [1] | |
Acquisition of treasury stock, at cost | (68,055) | (49,982) | [1] | (62,056) | [1] | |
Payment of cash dividends | (21,185) | (21,789) | [1] | (22,309) | [1] | |
Excess tax benefits related to share-based compensation | 479 | 1,214 | [1] | 3,977 | [1] | |
Payment of debt issuance costs | (36) | (823) | [1] | (1,889) | [1] | |
Net cash provided by (used in) financing activities | (84,990) | 105,968 | [1] | (53,060) | [1] | |
Effect of exchange rate changes on cash and cash equivalents | (644) | (982) | [1] | 3 | [1] | |
Net change in cash and cash equivalents | 9,171 | (1,514) | [1] | (8,593) | [1] | |
Cash and cash equivalents, beginning of period | [1] | 20,812 | 22,326 | 30,919 | ||
Cash and cash equivalents, end of period | $ 29,983 | $ 20,812 | [1] | $ 22,326 | [1] | |
[1] | Revised in the third quarter of 2015 for the impact of the changes in accounting principle related to inventory accounting and debt transaction costs. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying Consolidated Financial Statements represent Essendant Inc. (“ESND”) with its wholly owned subsidiary Essendant Co. (“ECO”), and ECO’s subsidiaries (collectively, “Essendant” or the “Company”). The Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States and include the accounts of ESND and its subsidiaries. The Company operates in a single reportable segment as a leading national wholesale distributor of workplace essentials, with net sales of approximately $5.4 billion for the year ended December 31, 2015. The Company stocks over 180,000 items on a national basis. These items include a broad spectrum of janitorial and breakroom supplies, technology products, traditional office products, industrial supplies, and office furniture. The Company sells its products through a national distribution network of 74 distribution centers to its approximately 30,000 reseller customers, who in turn sell directly to end-consumers. The Company’s customers include independent office products dealers; contract stationers; office products superstores; computer products resellers; office furniture dealers; mass merchandisers; mail order companies; sanitary supply, paper and foodservice distributors; drug and grocery store chains; healthcare distributors; e-commerce merchants; oil field, welding supply and industrial/MRO distributors; aftermarket automotive supply distributors and retailers; other independent distributors and end consumers. Many resellers have online capabilities. The Company also operates as an online retailer which sells direct to end consumers. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company. All significant intercompany accounts and transactions have been eliminated in consolidation. For all acquisitions, account balances and results of operations are included in the Consolidated Financial Statements as of the date acquired. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Actual results could differ from these estimates. Various assumptions and other factors underlie the determination of significant accounting estimates. The process of determining significant estimates is fact specific and takes into account factors such as historical experience, current and expected economic conditions, product mix, and in some cases, actuarial techniques. The Company periodically reevaluates these significant factors and makes adjustments where facts and circumstances dictate. Revenue Recognition Revenue is recognized when a service is rendered or when title to the product has transferred to the customer. Management records an estimate for future product returns related to revenue recognized in the current period. This estimate is based on historical product return trends and the gross margin associated with those returns. Management also records customer rebates that are based on annual sales volume to the Company’s customers. Annual rebates earned by customers include growth components, volume hurdle components, and advertising allowances. Shipping and handling costs billed to customers are treated as revenues and recognized at the time title to the product has transferred to the customer. Freight costs are included in the Company’s Consolidated Financial Statements as a component of cost of goods sold and are not netted against shipping and handling revenues. Net sales do not include sales tax charged to customers. The Company owned a software service provider from 2010 to 2014. The subsidiary’s revenue was generated from the sale of software licenses, delivery of subscription services (including the right to use software and software maintenance services), and professional services. Revenue was recognized when persuasive evidence of an arrangement existed, delivery occurred, the fees were fixed and determinable, and collection was considered probable. If collection was not considered probable, the Company recognized revenue when the fees were collected. If fees were not fixed and determinable, the Company recognized revenues when the fees became due from the customer. This entity was sold in 2014 and, therefore, the Company no longer had such contracts beginning in 2015. Customer Rebates Customer rebates and discounts are common practice in the business products industry and have a significant impact on the Company’s overall sales and gross margin. Customer rebates include volume rebates, sales growth incentives, advertising allowances, participation in promotions and other miscellaneous discount programs. These rebates are paid to customers monthly, quarterly and/or annually. Such rebates are reported in the Consolidated Financial Statements as a reduction of sales. Accrued customer rebates were $63.6 million and $63.2 million as of December 31, 2015 and 2014, respectively, and are included as a component of “Accrued liabilities” in the Consolidated Balance Sheets. Share-Based Compensation At December 31, 2015, the Company had two active share-based employee compensation plans covering key associates and/or non-employee directors of the Company. See Note 5 “Share-Based Compensation” to the Consolidated Financial Statements for more information. Cash Equivalents An unfunded check balance (payments in-transit) exists for the Company’s primary disbursement accounts. Under the Company’s cash management system, the Company utilizes available borrowings, on an as-needed basis, to fund the clearing of checks as they are presented for payment. As of December 31, 2015, and 2014, outstanding checks totaling $46.0 million and $62.1 million, respectively, were included in “Accounts payable” in the Consolidated Balance Sheets. Accounts Receivable In the normal course of business, the Company extends credit to customers. Accounts receivable, as shown in the Consolidated Balance Sheets, include such trade accounts receivable and are net of allowances for doubtful accounts and anticipated discounts. The Company makes judgments as to the collectability of trade accounts receivable based on historical trends and future expectations. Management estimates an allowance for doubtful accounts, which addresses the collectability of trade accounts receivable. This allowance adjusts gross trade accounts receivable downward to its estimated collectible or net realizable value. To determine the allowance for doubtful accounts, management reviews specific customer risks and the Company’s trade accounts receivable aging. Uncollectible trade receivable balances are written off against the allowance for doubtful accounts when it is determined that the trade receivable balance is uncollectible. Supplier Allowances Supplier allowances (fixed or variable) are common practice in the business products industry and have a significant impact on the Company’s overall gross margin. Receivables related to supplier allowances totaled $111.0 million and $124.4 million as of December 31, 2015 and 2014, respectively. These receivables are included in “Accounts receivable” in the Consolidated Balance Sheets. The majority of the Company’s annual supplier allowances and incentives are variable, based solely on the volume and mix of the Company’s product purchases from suppliers. These variable allowances are recorded based on the Company’s annual inventory purchase volumes and product mix and are included in the Company’s Consolidated Financial Statements as a reduction to cost of goods sold, thereby reflecting the net inventory purchase cost. The remaining portion of the Company’s annual supplier allowances and incentives are fixed and are earned based primarily on supplier participation in specific Company advertising and marketing publications. Fixed allowances and incentives are taken to income through cost of goods sold as inventory is sold. Supplier allowances and incentives attributable to unsold inventory are carried as a component of net inventory cost. Inventories During the third quarter of 2015, the Company elected a change in accounting principle for the valuation method of certain inventories. This change required a retrospective application to all periods presented. See Note 3, “Change in Accounting Principles,” for further details. Approximately 98.4% and 97.0% of total inventory as of December 31, 2015 and 2014, respectively has been valued under the last-in, first-out (“LIFO”) accounting method. LIFO results in a better matching of costs and revenues. The remaining inventory, which is not domestic, is valued under the first-in, first-out (“FIFO”) accounting method. Inventory valued under the FIFO and LIFO accounting methods is recorded at the lower of cost or market. If the Company had valued its entire inventory under the lower of FIFO cost or market, inventory would have been $147.8 million (includes $1.6 million LIFO reserve related to Nestor acquired in 2015) and $139.5 million higher than reported as of December 31, 2015 and December 31, 2014, respectively. The annual change in the LIFO reserve as of December 31, 2015, December 31, 2014 and December 31, 2013 resulted in an $8.3 million increase, an $17.4 million increase and an $6.2 million increase, respectively, in cost of goods sold. The change in the LIFO reserve in 2015 included a LIFO liquidation relating to decrements in three of the Company’s thirteen LIFO pools. These decrements resulted in liquidation of LIFO inventory quantities carried at lower costs in prior years as compared with the cost of current year purchases. This liquidation resulted in LIFO income of $1.1 million which was more than offset by LIFO expense of $7.8 million related to current inflation for an overall net increase in cost of sales of $6.7 million. The change in the LIFO reserve in 2014 included a LIFO liquidation relating to decrements in three of the Company’s seven LIFO pools. These decrements resulted in liquidation of LIFO inventory quantities carried at lower costs in prior years as compared with the cost of current year purchases. This liquidation resulted in LIFO income of $0.9 million which was more than offset by LIFO expense of $18.3 million related to current inflation for an overall net increase in cost of sales of $17.4 million. The change in the LIFO reserve in 2013 included a LIFO liquidation relating to a decrement in one of the Company’s five LIFO pools. This decrement resulted in liquidation of LIFO inventory quantities carried at lower costs in prior years as compared with the cost of current year purchases. This liquidation resulted in LIFO income of $0.3 million which was more than offset by LIFO expense of $6.5 million related to current inflation for an overall net increase in cost of sales of $6.2 million. The Company also records adjustments to inventory for shrinkage. Inventory that is obsolete, damaged, defective or slow moving is recorded at the lower of cost or market. These adjustments are determined using historical trends and are adjusted, if necessary, as new information becomes available. The Company charges certain warehousing and administrative expenses to inventory each period with $46.1 million, $44.7 million, and $43.0 million remaining in inventory as of December 31, 2015, December 31, 2014, and December 31, 2013, respectively. Property, Plant and Equipment Property, plant and equipment is recorded at cost. Depreciation and amortization are determined by using the straight-line method over the estimated useful lives of the assets. The estimated useful life assigned to fixtures and equipment is from two to ten years; the estimated useful life assigned to buildings does not exceed forty years; leasehold improvements are amortized over the lesser of their useful lives or the term of the applicable lease. Repair and maintenance costs are charged to expense as incurred. Software Capitalization The Company capitalizes internal use software development costs in accordance with guidance on accounting for costs of computer software developed or obtained for internal use. Amortization is recorded on a straight-line basis over the estimated useful life of the software, generally not to exceed ten years. Capitalized software is included in “Property, plant and equipment” on the Consolidated Balance Sheets. The total costs are as follows (in thousands): As of December 31, 2015 2014 Capitalized software development costs $ 98,873 $ 91,624 Accumulated amortization (73,723 ) (65,951 ) Net capitalized software development costs $ 25,150 $ 25,673 Goodwill and Intangible Assets Goodwill is initially recorded based on the premium paid for acquisitions and is subsequently tested for impairment. Intangible assets are initially recorded at their fair market values determined on quoted market prices in active markets, if available, or recognized valuation models. Intangible assets that have finite useful lives are amortized on a straight-line basis over their useful lives. Intangible assets that have indefinite useful lives are not amortized but are tested at least annually for impairment or whenever events or circumstances indicate impairment may have occurred. See Note 6 “Goodwill and Intangible Assets” to the Consolidated Financial Statements. Insured Loss Liability Estimates The Company is primarily responsible for retained liabilities related to workers’ compensation, vehicle, and certain employee health benefits. The Company records expense for paid and open claims and an expense for claims incurred but not reported based upon historical trends and certain assumptions about future events. The Company has an annual per-person maximum cap, provided by a third-party insurance company, on certain employee medical benefits. In addition, the Company has a per-occurrence maximum on workers’ compensation and auto claims. Leases The Company leases real estate and personal property under operating leases. Certain operating leases include incentives from landlords including, landlord “build-out” allowances, rent escalation clauses and rent holidays or periods in which rent is not payable for a certain amount of time. The Company accounts for landlord “build-out” allowances as deferred rent at the time of possession and amortizes this deferred rent on a straight-line basis over the term of the lease. The Company also recognizes leasehold improvements associated with the “build-out” allowances and amortizes these improvements over the shorter of the term of the lease or the expected life of the respective improvements. The Company accounts for rent escalation and rent holidays as deferred rent at the time of possession and amortizes this deferred rent on a straight-line basis over the term of the lease. As of December 31, 2015, any capital leases to which the Company is a party are immaterial to the Company’s financial statements. Pension Benefits Calculating the Company’s obligations and expenses related to its pension requires selection and use of certain actuarial assumptions. As more fully discussed in Note 13 to the Consolidated Financial Statements, these actuarial assumptions include discount rates, expected long-term rates of return on plan assets, and life expectancy of plan participants. To select the appropriate actuarial assumptions, management relies on current market conditions and historical information. Pension expense for 2015 was $5.4 million, compared to $3.6 million and $4.5 million in 2014 and 2013, respectively. Derivative Financial Instruments The Company’s risk management policies allow for the use of derivative financial instruments to manage foreign currency exchange rate and interest rate exposure subject to the management, direction and control of its financial officers. Risk management practices, including the use of all derivative financial instruments, are presented to the Board of Directors for approval. The policies do not allow such derivative financial instruments to be used for speculative purposes. All derivatives are recognized on the balance sheet date at their fair value. See Note 19, “Derivative Financial Instruments” for further detail. The Company’s interest rate swap is classified as a cash flow hedge in accordance with accounting guidance on derivative instruments and hedging activities as it is hedging the variability of cash flow to be paid by the Company. The Company uses foreign currency exchange contracts to hedge certain of its foreign exchange rate exposures related to inventory purchases, and classifies the designation contracts as cash flow hedges. Changes in the fair value are recorded in other comprehensive income, net of tax, until earnings are affected by the forecasted transaction or the variability of cash flow, and then are reported in current earnings. The Company formally documents all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives designated as cash flow hedges to specific forecasted transactions or variability of cash flow. The Company formally assesses, at both the hedge’s inception and on an ongoing basis, whether the derivatives used in hedging transactions are highly effective in offsetting changes in cash flow of hedged items. When it is determined that a derivative is not highly effective as a hedge then hedge accounting is discontinued prospectively in accordance with accounting guidance on derivative instruments and hedging activities. Income Taxes The Company accounts for income taxes using the liability method in accordance with the accounting guidance for income taxes. The Company estimates actual current tax expense and assesses temporary differences that exist due to differing treatments of items for tax and financial statement purposes. These temporary differences result in the recognition of deferred tax assets and liabilities. A provision has not been made for deferred U.S. income taxes on the undistributed earnings of the Company’s foreign subsidiaries as these earnings have historically been permanently invested except to the extent a liability was recorded in purchase accounting for the undistributed earnings of the foreign subsidiaries of O.K.I. Supply Co. as of the date of the acquisition. It is not practicable to determine the amount of unrecognized deferred tax liability for such unremitted foreign earnings. The current and deferred tax balances and income tax expense recognized by the Company are based on management’s interpretation of the tax laws of multiple jurisdictions. Income tax expense also reflects the Company’s best estimates and assumptions regarding, among other things, the level of future taxable income, interpretation of tax laws, and tax planning. Future changes in tax laws, changes in projected levels of taxable income, and tax planning could impact the effective tax rate and current and deferred tax balances recorded by the Company. Management’s estimates as of the date of the Consolidated Financial Statements reflect its best judgment giving consideration to all currently available facts and circumstances. As such, these estimates may require adjustment in the future, as additional facts become known or as circumstances change. Further, in accordance with the accounting guidance on income taxes, the tax effects from uncertain tax positions are recognized in the Consolidated Financial Statements, only if it is more likely than not that the position will be sustained upon examination, based on the technical merits of the position. The Company accounts for interest and penalties related to uncertain tax positions as a component of income tax expense. Foreign Currency Translation The functional currency for the Company’s foreign operations is the local currency. Assets and liabilities of these operations are translated into U.S. currency at the rates of exchange at the balance sheet date. The resulting translation adjustments are included in other comprehensive income (loss) in the Consolidated Statements of Comprehensive Income, a separate component of stockholders’ equity. Income and expense items are translated at average monthly rates of exchange. Realized gains and losses from foreign currency transactions included a $11.1 million loss related to the sale of the Mexican subsidiary in 2015. New Accounting Pronouncements In September 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-16, “ Simplifying the Accounting for Measurement-Period Adjustments (Topic 805): Business Combinations, In April 2015, the FASB issued ASU No. 2015-05, “ Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” In June 2014, the FASB issued ASU No. 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved After the Requisite Service Period In May 2014, the FASB issued ASU No. 2014-09, Revenue From Contracts With Customers Revenue from Contracts with Customers, |
Change in Accounting Principles
Change in Accounting Principles | 12 Months Ended |
Dec. 31, 2015 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Change in Accounting Principles | 3. Change in Accounting Principles Change in Method of Accounting for Inventory Valuation In the third quarter of 2015, the Company changed its method of inventory costing for certain inventory in its Business and Facility Essentials (formerly separately known as Supply and Lagasse) operating segment to the LIFO method from the FIFO accounting method. Prior to the change, the Business and Facility Essentials operating segment was comprised of two separate legal entities that each utilized different methods of inventory costing: LIFO for inventories related to Business Essentials which is comprised mainly of office product and breakroom categories and FIFO for inventories related to Facility Essentials which consists of the janitorial product category. The Company believes that the LIFO method is preferable because i) the Company is executing an initiative to combine the office products and janitorial categories onto a single information technology and operating platform, ii) it allows for consistency in financial reporting (all domestic inventories will now be on LIFO), and iii) it allows for better matching of costs and revenues as historical inflationary inventory acquisition prices are expected to continue in the future and the LIFO method uses the current acquisition cost to value cost of goods sold. The change has been reported through retrospective application of the new accounting policy to all periods presented. The impact of the change in the method of inventory costing for certain inventory to the third quarter 2015 was a $4.2 million decrease to cost of goods sold, $2.3 million increase to net income, and $0.06 increase in basic and diluted EPS. Change in Method of Accounting for Debt Issuance Costs In April 2015, the FASB issued ASU 2015-03 Simplifying the Presentation of Debt Issuance Costs Interest-Imputation of Interest (dollars in thousands) Years Ended December 31, 2014 2013 Previous Method As Reported Effect of Change Previous Method As Reported Effect of Change Consolidated Statement of Income Cost of goods sold (A) $ 4,516,704 $ 4,524,676 $ 7,972 $ 4,295,715 $ 4,297,952 $ 2,237 Gross profit (A) 810,501 802,529 (7,972 ) 789,578 787,341 (2,237 ) Warehousing, marketing, and administrative expenses (A) 592,050 595,673 3,623 579,245 578,958 (287 ) Income before income taxes (A) 194,483 182,888 (11,595 ) 197,510 195,560 (1,950 ) Income tax expense (A) 75,285 70,773 (4,512 ) 74,340 73,507 (833 ) Net income (A) 119,198 112,115 (7,083 ) 123,170 122,053 (1,117 ) Net income per share (A) Basic (A) $ 3.08 $ 2.90 $ (0.18 ) $ 3.11 $ 3.08 $ (0.03 ) Diluted (A) $ 3.05 $ 2.87 $ (0.18 ) $ 3.06 $ 3.03 $ (0.03 ) Consolidated Statement of Comprehensive Income Net income (A) $ 119,198 $ 112,115 $ (7,083 ) $ 123,170 $ 122,053 $ (1,117 ) Comprehensive income (A) 96,295 89,212 (7,083 ) 137,047 135,930 (1,117 ) Consolidated Statement of Financial Position Inventories (A) $ 926,809 $ 906,430 $ (20,379 ) $ 830,295 $ 821,511 $ (8,784 ) Other current assets (A) 30,042 30,713 671 29,255 29,255 - Other long-term assets (B) 41,810 38,669 (3,141 ) 25,576 22,185 (3,391 ) Accrued liabilities (A) 192,792 185,535 (7,257 ) 191,531 188,115 (3,416 ) Long-term debt (B) 713,058 709,917 (3,141 ) 533,324 529,933 (3,391 ) Retained earnings (A) 1,541,675 1,529,224 (12,451 ) 1,444,238 1,438,870 (5,368 ) Consolidated Statement of Cash Flows Net income (A) $ 119,198 $ 112,115 $ (7,083 ) $ 123,170 $ 122,053 $ (1,117 ) Deferred income taxes (A) (6,367 ) (10,879 ) (4,512 ) (3,921 ) (4,754 ) (833 ) Inventories (A) (30,319 ) (18,724 ) 11,595 (66,627 ) (64,677 ) 1,950 Cash provided by operating activities (A) 77,133 77,133 - 74,737 74,737 - Consolidated Statement of Shareholders’ Equity Retained earnings at beginning of year (A) $ 1,444,238 $ 1,438,870 $ (5,368 ) $ 1,343,437 $ 1,339,186 $ (4,251 ) Retained earnings at end of year (A) 1,541,675 1,529,224 (12,451 ) 1,444,238 1,438,870 (5,368 ) (A) Change related to Inventory Valuation (B) Change related to Debt Issuance Costs Change in Method of Accounting for Deferred Taxes In November 2015, the FASB issued ASU 2015-17 Balance Sheet Classification of Deferred Taxes Income Taxes |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | 4. Acquisitions and Dispositions Acquisitions CPO Commerce, Inc. On May 30, 2014, Essendant Co. completed the acquisition of CPO Commerce, Inc. (“CPO”), a leading online retailer of brand name power tools and equipment. The acquisition of CPO significantly expanded the Company’s digital resources and capabilities to support resellers as they transition to an increasingly online environment. CPO’s expertise strengthens Essendant’s ability to offer features like improved product content, real-time access to inventory and pricing, digital marketing and merchandising, and an enhanced digital platform. The purchase price was $37.8 million, including $5.5 million related to the estimated fair value of contingent consideration. The contingent consideration ultimately paid will be determined based on CPO’s sales during a three-year period immediately following the acquisition date, and will be between zero and $10 million. The Company has currently recorded a liability for contingent consideration of $9.2 million. Any changes to the estimated fair value of contingent consideration after the original purchase accounting is completed are recorded in “warehousing, marketing and administrative expenses” in the period in which a change occurs. The Company financed the 100% stock acquisition with borrowings under the Company’s available committed bank facilities. Purchase accounting for this transaction was completed as of May 30, 2015. CPO contributed $119.7 million to the Company’s 2015 net sales. Had the CPO acquisition been completed as of the beginning of 2013, the Company’s unaudited pro forma net sales and net income for the twelve-month periods ending December 31, 2014 and 2013 would not have been materially impacted. MEDCO On October 31, 2014, Essendant Co. completed the acquisition of 100% of the capital stock of Liberty Bell Equipment Corp., a United States wholesaler of automotive aftermarket tools and equipment, and its affiliates (collectively, MEDCO) including G2S Equipement de Fabrication et d’Entretien, a Canadian wholesaler. MEDCO advances a key pillar of the Company’s strategy, which is to diversify into channels and categories that leverage the common platform. It also brings expanded categories and services to customers. The purchase price was $150.4 million, including $4.7 million related to the estimated fair value of contingent consideration. The contingent consideration ultimately paid will be determined based on MEDCO’s sales and EBITDA during a three-year period immediately following the acquisition date. Additionally, $6.0 million was reserved as a payable upon completion of an eighteen month indemnification period. The final payments related to the contingent consideration will be determined by actual achievement in the earn-out periods and will be between zero and $10 million. The Company has currently recorded a liability for contingent consideration of $5.2 million. Any changes to the estimated fair value of contingent consideration after the original purchase accounting is completed are recorded in “warehousing, marketing and administrative expenses” in the period in which a change occurs. This acquisition was funded through a combination of cash on hand and cash available under the Company’s committed bank facilities. Purchase accounting for this transaction was completed as of October 31, 2015. MEDCO contributed $274.4 million to the Company’s 2015 net sales. Had the MEDCO acquisition been completed as of the beginning of 2013, the Company’s unaudited pro forma net sales for the years ended December 31, 2014 and 2013 would have been $5.5 billion and $5.3 billion, respectively, and the Company’s unaudited pro forma net income for the years ended December 31, 2014 and 2013 would have been $117.9 million, and $127.9 million, respectively. Nestor Sales LLC On July 31, 2015, Essendant Co. completed the acquisition of 100% of the capital stock of Nestor Sales LLC (“Nestor”), a leading wholesaler and distributor of tools, equipment and supplies to the transportation industry. This acquisition accelerates the Company’s growth in the automotive aftermarket, complements the Company’s existing industrial offerings while providing access to new customer segments, and advances a key strategic pillar to diversify into channels and categories that leverage our common platform. The purchase price was $41.8 million. This acquisition was funded through a combination of cash on hand and cash available under the Company’s revolving credit facility. Nestor contributed $27.3 million to the Company’s 2015 net sales after its acquisition on July 31, 2015. Had the Nestor acquisition been completed as of the beginning of 2013, the Company’s unaudited pro forma net sales and net income for the twelve-month periods ended December 31, 2015, 2014 and 2013 would not have been materially impacted. The Company has developed preliminary estimates of the fair values of assets acquired and liabilities assumed from the Nestor acquisition for purposes of allocating the purchase prices. The estimate is subject to change as the valuation activities are completed. The fair values of the assets and liabilities acquired in the Nestor acquisition was estimated using various valuation methods including estimated selling prices, market approach, and discounted cash flows using both an income and cost approach. The same methods were used for determining the fair values of the assets and liabilities acquired for the CPO and Medco acquisitions. Any changes to the preliminary allocations of the purchase prices, some of which may be material, are allocated to residual goodwill. At December 31, 2015, the allocations of the purchase prices were as follows (amounts in thousands): CPO MEDCO Nestor (Final) (Final) (Preliminary) Purchase price, net of cash acquired $ 32,225 $ 145,873 $ 39,983 Accounts receivable (2,956 ) (44,815 ) (9,230 ) Inventories (13,051 ) (55,491 ) (10,542 ) Other current assets (269 ) (1,299 ) (338 ) Property, plant and equipment, net (488 ) (4,408 ) (1,251 ) Other assets - (650 ) (752 ) Intangible assets (12,800 ) (40,000 ) (17,700 ) Total assets acquired (29,564 ) (146,663 ) (39,813 ) Accounts payable 16,911 32,383 4,992 Accrued liabilities 2,580 5,542 1,912 Deferred income taxes 3,453 2,167 4,421 Other long-term liabilities 90 52 76 Total liabilities assumed 23,034 40,144 11,401 Goodwill $ 25,695 $ 39,354 $ 11,571 The purchased identifiable intangible assets were as follows (amounts in thousands): CPO (Final) MEDCO (Final) Nestor (Preliminary) Total Estimated Life Total Estimated Life Total Estimated Life Customer relationships $ 5,200 3 years $ 37,590 3-15 years $ 16,330 13 years Trademark 7,600 15 years 2,410 1.5-15 years 1,370 2.5-15 years Total $ 12,800 $ 40,000 $ 17,700 Agreement with Staples, Inc. On February 16, 2016, the company announced an agreement to purchase more than $550 million worth of annual contracts with minority and woman-owned office supply resellers and their large corporate and other enterprise customers from Staples, Inc. The transaction is subject to the successful completion of the proposed merger of Staples and Office Depot, as well as other regulatory and customary closing conditions. Under the terms of the agreement, Essendant will pay Staples approximately $22.5 million. Disposition of Azerty de Mexico On September 18, 2015, the Company completed the 100% stock-sale of its subsidiary, Azerty de Mexico, to the local general manager. The sale price was a combination of cash and a seller’s note, totaling $8.7 million. The seller’s note matures in 180 days and requires periodic repayments. As of December 31, 2015 the balance of the note was $0.7 million. When the decision to sell the subsidiary was approved, in accordance with Accounting Standards Codification (ASC) 360-10-45-9 Property, Plant, and Equipment Intangibles – Goodwill and Other Disposition of MBS Dev On December 16, 2014, the Company sold MBS Dev, as subsidiary focused on software solutions for distribution companies. In conjunction with this sale, the Company recognized an $8.2 million loss on the disposition of the business. This consisted of a $9.0 million goodwill impairment and an $0.8 million gain on the disposal. See Note 6 “Goodwill and Intangible Assets” for further detail. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 5. Share-Based Compensation Overview As of December 31, 2015, the Company has two active equity compensation plans. A description of these plans is as follows: Nonemployee Directors’ Deferred Stock Compensation Plan Pursuant to the Essendant Inc. Nonemployee Directors’ Deferred Stock Compensation Plan, non-employee directors may defer receipt of all or a portion of their retainer and meeting fees. Fees deferred are credited quarterly to each participating director in the form of stock units, based on the fair market value of the Company’s common stock on the quarterly deferral date. Each stock unit account generally is distributed and settled in whole shares of the Company’s common stock on a one-for-one basis, with a cash-out of any fractional stock unit interests, after the participant ceases to serve as a Company director. For each of the years ended December 31, 2015, 2014 and 2013, the Company recorded compensation expense of $0.1 million. As of December 31, 2015, 2014 and 2013 the accumulated number of stock units outstanding under this plan was 41,051; 43,082; and 56,737; respectively. 2015 Long-Term Incentive Plan (“LTIP”) In May 2015, the Company’s shareholders approved the LTIP to, among other things, attract and retain managerial talent, further align the interest of key associates to those of the Company’s stockholders and provide competitive compensation to key associates. Award vehicles include, but are not limited to, stock options, restricted stock awards, restricted stock units (“RSUs”) and performance-based awards. Associates and non-employee directors of the Company are eligible to become participants in the LTIP, except that non-employee directors may not be granted stock options. Accounting For Share-Based Compensation The following table summarizes the share-based compensation expense (in thousands): Year Ended December 31, 2015 2014 2013 Numerator: Pre-tax expense $ 7,895 $ 8,195 $ 10,808 Tax effect (3,000 ) (3,114 ) (4,108 ) After tax expense $ 4,895 $ 5,081 $ 6,700 Denominator: Denominator for basic shares—Weighted average shares 37,457 38,705 39,650 Denominator for diluted shares—Adjusted weighted average shares and the effect of dilutive securities 37,457 39,130 40,236 Net expense per share: Net expense per share—basic $ 0.13 $ 0.13 $ 0.17 Net expense per share—diluted $ 0.13 $ 0.13 $ 0.17 The following tables summarize the intrinsic value of options outstanding, exercisable, and exercised for the applicable periods listed below: As of December 31, Year ended December 31, Outstanding Exercisable Exercised 2015 $ 1,253 $ 1,253 $ 902 2014 6,092 4,543 537 2013 9,897 6,262 13,676 The following tables summarize the intrinsic value of restricted shares outstanding and vested for the applicable periods listed below: As of December 31, Year ended December 31, Outstanding Vested 2015 $ 34,981 $ 8,159 2014 45,928 10,976 2013 47,780 12,414 The aggregate intrinsic values summarized in the tables above are based on the closing sale price per share for the Company’s Common Stock on the last day of trading in each year which was $32.51, $42.16, and $45.89 per share for the years ended December 31, 2015, 2014 and 2013, respectively. Additionally, the aggregate intrinsic value of options exercisable does not include the value of options for which the exercise price exceeds the stock price as of the last day of trading in each year. Stock Options The fair value of option awards and modifications to option awards is estimated on the date of grant or modification using a Black-Scholes option valuation model that uses various assumptions including the expected stock price volatility, risk-free interest rate, and expected life of the option. The expected term of options granted is derived from the historical forfeiture and exercise behavior and represents the period of time that options granted are expected to be outstanding. The expected volatility of the price of the underlying shares is implied based on historical volatility of the Company’s common stock. The expected dividends were based on the current dividend yield of the Company’s stock as of the date of the grant. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. There were no stock options granted in 2015. The assumptions used for 2014 are shown in the following table. 2014 Weighted average expected term 5.6 Expected volatility 39.12 % Weighted average volatility 39.12 % Weighted average expected dividends 1.24 % Risk-free rate 1.75 % Stock options granted in 2014 vest at the end of 2.25 years, and have a term of 10 years. Previously issued stock options generally vested in annual increments over three years and have a term of 10 years. Compensation costs for all stock options are recognized, net of estimated forfeitures, on a straight-line basis over the vesting period. As of December 31, 2015, there was $0.5 million of unrecognized compensation cost related to stock option awards granted. The cost is expected to be recognized over a weighted-average period of 0.25 years. In 2015, there were no stock options granted. In 2014 and 2013, there were 5,538 and 585,189 stock options granted, respectively. The following table summarizes the transactions, excluding restricted stock, under the Company’s equity compensation plans for the last three years: Weighted Weighted Weighted Average Average Average Exercise Exercise Exercise 2015 Price 2014 Price 2013 Price Options outstanding—January 1 727,378 $ 33.81 812,160 $ 33.70 1,371,850 $ 24.86 Granted - - 5,538 45.89 585,189 38.71 Exercised (77,918 ) 24.11 (32,610 ) 24.43 (1,065,920 ) 24.69 Cancelled (200,773 ) 38.71 (57,710 ) 38.74 (78,959 ) 38.69 Options outstanding—December 31 448,687 $ 33.31 727,378 $ 33.81 812,160 $ 33.70 Number of options exercisable 195,402 $ 26.11 273,320 $ 25.54 305,930 $ 25.42 The following table summarizes outstanding and exercisable options granted under the Company’s equity compensation plans as of December 31, 2015: Remaining Contractual Exercise Prices Outstanding Life (Years) Exercisable 20.00 - 25.00 103,280 0.6 103,280 25.01 - 30.00 89,876 1.4 89,876 30.01 - 35.00 2,246 1.4 2,246 35.01 - 40.00 247,747 7.3 - 40.01 - 50.00 5,538 8.0 - Total 448,687 4.5 195,402 Restricted Stock and Restricted Stock Units The Company granted 462,697 shares of restricted stock and 162,092 restricted stock units (“RSUs”) during 2015. During 2014, the Company granted 253,042 shares of restricted stock and 176,717 RSUs. During 2013, the Company granted 181,916 shares of restricted stock and 166,348 RSUs. The majority of the RSUs granted in 2015 vest in 2018 and the majority of the RSUs granted in 2014 and 2013 vest in three annual installments based on the terms of the agreements, to the extent earned based on the Company’s cumulative net income, cumulative working capital efficiency or economic profit performance against target economic profit goals. The performance-based RSUs granted in 2015, 2014, and 2013 have a minimum and maximum payout of zero to 200%. Included in the 2015, 2014, and 2013 grants were 333,268, 271,594, and 194,517 shares of restricted stock and RSUs granted to employees who were not executive officers, as of December 31, 2015, 2014 and 2013, respectively. In addition, there were 30,778, 20,664, and 23,898 shares of restricted stock and RSUs granted to non-employee directors during the years ended December 31, 2015, 2014 and 2013, respectively. For the years ended December 31, 2015, 2014 and 2013, there were also 260,743, 137,501, and 129,849 shares of restricted stock and RSUs granted to executive officers, respectively. The restricted stock granted to executive officers vests with respect to each officer in annual increments over three years, provided that the officer is still employed as of the anniversary date of the grant, and the Company’s cumulative diluted earnings per share for the four calendar quarters immediately preceding the vesting date exceed $0.50 per diluted share as defined in the officers’ restricted stock agreement. As of December 31, 2015, there was $16.9 million of total unrecognized compensation cost related to non-vested restricted stock and RSUs granted. The cost is expected to be recognized over a weighted-average period of 2.1 years. The following table summarizes restricted stock and RSU transactions for the last three years. Weighted Weighted Weighted Average Average Average Grant Date Grant Date Grant Date Restricted Stock and RSUs 2015 Fair Value 2014 Fair Value 2013 Fair Value Nonvested—January 1 1,089,374 $ 31.23 1,041,189 $ 31.24 1,297,906 $ 28.61 Granted 624,789 36.79 429,759 40.52 348,264 38.28 Vested (212,537 ) 33.94 (237,739 ) 41.59 (323,159 ) 37.02 Cancelled (425,626 ) 34.58 (143,835 ) 34.04 (281,822 ) 30.04 Nonvested—December 31 1,076,000 $ 36.13 1,089,374 $ 31.23 1,041,189 $ 31.24 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets Goodwill is tested for impairment at the reporting unit level on an annual basis as of October 1, as well as between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying value. All four During the 2015 annual impairment test, it was determined that the fair value of the ORS Industrial reporting unit was below its carrying value. The fair value of the business was impacted by the macroeconomic environment in the oilfield and energy sectors that is now projected to have a long-term downturn, causing a change in strategic direction for ORS Industrial. ORS Industrial, under new leadership, plans to diversify its offerings to lessen dependencies on the oilfield and energy sectors by revising its merchandising and sales strategy. The determination of fair value for the reporting unit was based on a combination of prices of comparable businesses and historic and forecasted future discounted cash flows. The amount of the goodwill impairment was determined by valuing the entity’s assets and liabilities at fair value and comparing the fair value of the implied goodwill to its carrying value. Upon completion of this calculation, the carrying amount of the goodwill exceeded the implied fair value resulting in a goodwill impairment of $113.8 million. In addition, as part of this strategic review, the Company determined a portion of its inventory would no longer be offered and, therefore, is obsolete as of December 31, 2015. This determination resulted in an additional reserve of $4.9 million. Impairment losses are reported in warehousing, marketing, and administrative expenses and inventory reserve is a component of cost of goods sold on the Company’s Consolidated Statement of Operations. In connection with the sale of Azerty de Mexico in 2015, the Company performed an impairment test and determined that $3.3 million of goodwill allocated to the subsidiary was fully impaired. See Note 4, “Acquisitions and Dispositions,” for further detail. At the Company’s annual impairment test date of October 1, 2014, the Company concluded for four out of five reporting units that goodwill was not impaired. Prior to the completion of the 2014 annual goodwill impairment test for MBS Dev, the Company began negotiating the sale of MBS Dev with third parties and concluded that this change in strategy for MBS Dev was an interim indicator of impairment that necessitated an interim test for goodwill impairment. The Company completed a goodwill impairment test as of the date the assets were classified as held for sale, and used a market approach to determine the fair value of the MBS Dev reporting unit. The fair value of the MBS Dev reporting unit did not exceed its carrying value, requiring the Company to determine the amount of goodwill impairment loss by valuing the entity’s assets and liabilities at fair value and comparing the fair value of the implied goodwill to the carrying value of goodwill. Upon completion of this calculation, the carrying amount of the goodwill exceeded the implied fair value of that goodwill, resulting in a goodwill impairment of $9.0 million. The goodwill impairment was partially offset by the fair value of the consideration received for MBS Dev being in excess of the carrying value, leading to a total loss on disposition of MBS Dev of $8.2 million. The recognized and unrecognized intangible assets were valued using the cost method and relief from royalty approach using estimates of forecasted future revenues. Indefinite lived intangible assets are tested for impairment annually as of October 1 or more frequently if events or changes in circumstances indicate that the assets might be impaired. Based on the testing completed in 2015, the carrying amount of certain indefinite lived intangible assets of ORS Industrial exceeded the implied fair value, resulting in an impairment totaling $2.1 million. In . As of December 31, 2015 and 2014, the Company’s Consolidated Balance Sheets reflected $299.4 million and $398.0 million of goodwill, and $96.4 million and $112.0 million in net intangible assets, respectively. The changes in the carrying amount of goodwill are noted in the following table (in thousands): Goodwill, balance as of December 31, 2014 $ 398,042 Impairment (117,094 ) Purchase accounting adjustments 9,427 Acquisition 11,571 Currency translation adjustment (2,591 ) Goodwill, balance as of December 31, 2015 $ 299,355 Net intangible assets consist primarily of customer lists, trademarks, and non-compete agreements purchased as part of acquisitions. The Company has no intention to renew or extend the terms of acquired intangible assets and accordingly, did not incur any related costs during 2015 or 2014. Amortization of intangible assets purchased as part of acquisitions totaled $13.4 million, $8.6 million, and $7.0 million for the years ended December 31, 2015, 2014 and 2013, respectively. Accumulated amortization of intangible assets as of December 31, 2015 and 2014 totaled $59.9 million and $45.2 million, respectively. The following table summarizes the intangible assets of the Company by major class of intangible assets and the cost, accumulated amortization, net carrying amount, and weighted average life, if applicable (in thousands): December 31, 2015 December 31, 2014 Weighted Weighted Average Average Gross Net Useful Gross Net Useful Carrying Accumulated Carrying Life Carrying Accumulated Carrying Life Amount Amortization Amount (years) Amount Amortization Amount (years) Intangible assets subject to amortization Customer relationships and other intangibles $ 137,938 $ (51,357 ) $ 86,581 16 $ 125,761 $ (41,123 ) $ 84,638 16 Non-compete agreements 4,644 (4,260 ) 384 4 4,672 (2,364 ) 2,308 4 Trademarks 13,688 (4,240 ) 9,448 14 14,428 (1,716 ) 12,712 13 Total $ 156,270 $ (59,857 ) $ 96,413 $ 144,861 $ (45,203 ) $ 99,658 Intangible assets not subject to amortization Trademarks - - - n/a 12,300 - 12,300 n/a Total $ 156,270 $ (59,857 ) $ 96,413 $ 157,161 $ (45,203 ) $ 111,958 The following table summarizes the amortization expense expected to be incurred over the next five years on intangible assets (in thousands): Year Amounts 2016 $ 12,281 2017 10,811 2018 8,081 2019 6,963 2020 6,960 |
Severance and Restructuring Cha
Severance and Restructuring Charges | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring And Related Activities [Abstract] | |
Severance and Restructuring Charges | 7. Severance and Restructuring Charges Commencing in the first quarter of 2015, the Company began certain restructuring actions which included workforce reduction and facility closures. For the quarter and year ended December 31, 2015, the Company recorded $1.0 million and $2.5 million, respectively, of pre-tax expense relating to facility consolidations. During the first quarter of 2015, the Company recorded a $6.0 million pre-tax charge relating to a workforce reduction, and reversed $0.7 million of this charge during the fourth quarter of 2015. These charges were included in “warehousing, marketing and administrative expenses.” Cash outflows for these actions occurred primarily in 2015 and were approximately $0.4 million and $3.4 million in the quarter and year ended December 31, 2015. As of December 31, 2015, the Company has accrued liabilities for these actions of $1.9 million. In the fourth quarter of 2015 and continuing through the first quarter of 2016, the Company executed actions to reduce costs through management de-layering in order to achieve broader functional alignment of the organization. The Company recorded an $11.9 million pre-tax charge relating to this workforce reduction. These charges were included in “warehousing, marketing and administrative expenses.” Cash outflows for these actions began in 2015 and will continue into 2016. Cash outlays associated with these charges were approximately $0.8 million in the year ended December 31, 2015. As of December 31, 2015, the Company has accrued liabilities for these actions of $11.1 million. During the first quarter of 2013, the Company recorded a $14.4 million pre-tax charge related to a workforce reduction and facility closures. These actions were substantially completed in 2013. The pre-tax charge is comprised of certain OKI facility closure expenses of $1.2 million and severance and workforce reduction-related expenses of $13.2 million which were included in operating expenses. Cash outflows for these actions occurred primarily during 2013 and 2014 but continued into 2015. Cash outlays associated with these charges were $0.3 million, $3.9 million, and $8.6 million during 2015, 2014, and 2013, respectively. During 2014 and 2013, the Company reversed a portion of these charges totaling $0.3 million and $1.4 million, respectively. As of December 31, 2015, the Company had no accrued liabilities for these actions and as of December 31, 2014 the Company recorded $0.2 million in accrued liabilities related to workforce reduction charges. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 8. Accumulated Other Comprehensive Income (Loss) The change in Accumulated Other Comprehensive Income (Loss) (“AOCI”) by component, net of tax, for the year ended December 31, 2015 is as follows: (amounts in thousands) Foreign Currency Translation Cash Flow Hedges Defined Benefit Pension Plans Total AOCI, balance as of December 31, 2014 $ (11,923 ) $ 274 $ (51,142 ) $ (62,791 ) Other comprehensive (loss) income before reclassifications (9,075 ) (934 ) (500 ) (10,509 ) Amounts reclassified from AOCI 11,132 806 3,771 15,709 Net other comprehensive (loss) income 2,057 (128 ) 3,271 5,200 AOCI, balance as of December 31, 2015 $ (9,866 ) $ 146 $ (47,871 ) $ (57,591 ) The following table details the amounts reclassified out of AOCI into the income statement during the twelve-month period ending December 31, 2015: Amount Reclassified From AOCI For the Twelve Months Ended December 31, Affected Line Item In The Statement Details About AOCI Components 2015 Where Net Income is Presented Foreign currency translation adjustments Disposition of Azerty de Mexico $ 11,132 Warehousing, marketing and administrative expenses Realized and unrealized gains (losses) on cash flow hedges Gain (loss) on interest rate swap, before tax $ 1,309 Interest expense, net Gain on foreign exchange hedges, before tax (9 ) Cost of goods sold (494 ) Tax provision $ 806 Net of tax Defined benefit pension plan items Amortization of prior service cost and unrecognized loss $ 6,158 Warehousing, marketing and administrative expenses (2,387 ) Tax provision 3,771 Net of tax Total reclassifications for the period, net of tax $ 15,709 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 9. Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if dilutive securities were exercised into common stock. Stock options, restricted stock and deferred stock units are considered dilutive securities. Stock options to purchase 0.3 million, 0.5 million, and 0.5 million shares of common stock were outstanding at December 31, 2015, 2014, and 2013, respectively, but were not included in the computation of diluted earnings per share because the options’ exercise prices were greater than the average market price of the common shares and, therefore, the effect would be antidilutive. An additional 0.4 million shares of commons stock outstanding at December 31, 2015 were excluded from the computation of diluted earnings per share due to the net loss. The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data): Years Ended December 31, 2015 2014 2013 Numerator: Net income (loss) $ (44,342 ) $ 112,115 $ 122,053 Denominator: Denominator for basic earnings per share - weighted average shares 37,457 38,705 39,650 Effect of dilutive securities: Employee stock options and restricted units - 425 586 Denominator for diluted earnings per share - Adjusted weighted average shares and the effect of dilutive securities 37,457 39,130 40,236 Net income (loss) per share: Net income (loss) per share - basic $ (1.18 ) $ 2.90 $ 3.08 Net income (loss) per share - diluted (1) $ (1.18 ) $ 2.87 $ 3.03 (1) Diluted earnings per share for the fourth quarter of 2015 under GAAP reflect an adjustment to the basic earnings per share due to net los s. Common Stock Repurchases In 2015 and 2014, the Company repurchased 1,822,227 and 1,255,705 shares of ESND’s common stock at an aggregate cost of $67.4 million and $50.6 million, respectively. Depending on market and business conditions and other factors, the Company may continue or suspend purchasing its common stock at any time without notice. Acquired shares are included in the issued shares of the Company and treasury stock, but are not included in average shares outstanding when calculating earnings per share data. As of December 31, 2015 the Company had $75.0 million remaining on its current Board authorization to repurchase ESND common stock. During 2015, 2014 and 2013, the Company reissued 362,874, 250,747, and 1,086,502 shares, respectively, of treasury stock to fulfill its obligations under its equity incentive plans. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | 10. Segment Information Management defines operating segments as individual operations that the Chief Operating Decision Maker (“CODM”) (in the Company’s case, the Chief Executive Officer) reviews for the purpose of assessing performance and making operating decisions. When evaluating operating segments, management considers whether: · The component engages in business activities from which it may earn revenues and incur expenses; · The operating results of the component are regularly reviewed by the enterprise’s CODM; · Discrete financial information is available about the component; and · Other factors are present, such as management structure, presentation of information to the Board of Directors and the nature of the business activity of each component. Based on the factors referenced above, management has determined that the Company has four operating segments, Business and Facility Essentials, ORS Industrial, CPO, and Automotive. Business and Facility Essentials also included operations in Mexico conducted through a ESND subsidiary, Azerty de Mexico, which was consolidated into the operating segment up to the date it was sold in 2015. See Note 4, “Acquisitions and Dispositions”, for further information. ORS Industrial includes operations in Canada and Dubai, UAE. The Automotive operating segment includes operations in Canada. For the years ended December 31, 2015, 2014 and 2013, the Company’s net sales from its foreign operations totaled $128.3 million, $151.3 million and $138.2 million, respectively. As of December 31, 2015, 2014, and 2013, long-lived assets of the Company’s foreign operations totaled $32.2 million, $42.5 million, and $13.8 million, respectively. Management has also concluded that three of the Company’s operating segments (Business and Facility Essentials, ORS Industrial, and Automotive) meet all of the aggregation criteria required by the accounting guidance. Such determination is based on company-wide similarities in (1) the nature of products and/or services provided, (2) customers served, (3) production processes and/or distribution methods used, (4) economic characteristics including earnings before interest and taxes, and (5) regulatory environment. This aggregate presentation reflects management’s approach to assessing performance and allocating resources. CPO does not meet the materiality thresholds for reporting individual segments and was combined with the other operating segments. The Company’s product offerings may be divided into the following primary categories: (1) janitorial and breakroom supplies, including foodservice consumables, safety and security items, and paper and packaging supplies; (2) technology products such as computer supplies and peripherals; (3) traditional office products, including writing instruments, paper products, organizers and calendars and various office accessories; (4) industrial supplies, including hand and power tools, safety and security supplies, janitorial equipment and supplies, welding products, and automotive aftermarket tools and equipment and (5) office furniture, including desks, filing and storage solutions, seating and systems furniture. In 2015, the Company’s largest supplier was Hewlett-Packard Company which represented approximately 14% of its total purchases. No other supplier accounted for more than 10% of the Company’s total purchases. For the year ended December 31, 2015, the Company had purchases of $13.8 million and payables of $1.4 million to a buying group in which the Company participates through its equity ownership. The Company’s customers include independent office products dealers and contract stationers, office products mega-dealers, office products superstores, computer products resellers, office furniture dealers, mass merchandisers, mail order companies, sanitary supply distributors, drug and grocery store chains, e-commerce dealers, other independent distributors and end consumers. The Company had one customer, W.B. Mason Co., Inc., which constituted approximately 12% of its 2015 consolidated net sales. No other single customer accounted for more than 10% of the 2015 consolidated net sales. The following table shows net sales by product category for 2015, 2014 and 2013 (in thousands): Years Ended December 31 2015 (1) 2014 (1) 2013 (1) Janitorial and breakroom supplies $ 1,451,829 $ 1,435,933 $ 1,336,182 Technology products 1,365,996 1,450,777 1,462,756 Traditional office products 1,205,845 1,329,028 1,314,456 Industrial supplies 869,019 638,781 517,810 Office furniture 317,494 311,282 311,403 Freight revenue 125,731 121,933 105,567 Other 27,132 39,471 37,119 Total net sales $ 5,363,046 $ 5,327,205 $ 5,085,293 (1) Certain prior period amounts have been reclassified to conform to the current presentation. Such changes include reclassification of specific products to different product categories and did not impact the Consolidated Statements of Operations. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | 11. Debt ESND is a holding company and, as a result, its primary sources of funds are cash generated from operating activities of its direct operating subsidiary, ECO, and from borrowings by ECO. The 2013 Credit Agreement, the 2013 Note Purchase Agreement, and the Receivables Securitization Program (each of which are defined below) contain restrictions on the use of cash transferred from ECO to ESND. Debt consisted of the following amounts (in millions): As of As of December 31, 2015 December 31, 2014 2013 Credit Agreement $ 368.4 $ 363.0 2013 Note Purchase Agreement 150.0 150.0 Receivables Securitization Program 200.0 200.0 OKI Mortgage & Capital Lease 0.1 0.9 Transaction Costs (2.2 ) (3.1 ) Total $ 716.3 $ 710.8 As of December 31, 2015, 79.0% of the Company’s outstanding debt, excluding capital leases and transaction costs, was priced at variable interest rates based primarily on the applicable bank prime rate or London InterBank Offered Rate (“LIBOR”). As of December 31, 2015, the overall weighted average effective borrowing rate, excluding the impact of commitment fees, of the Company’s debt was 2.23%. At December 31, 2015, 58.0% of the Company’s debt was unhedged and a 50 basis point movement in interest rates would result in a $2.1 million change in annualized interest expense, on a pre-tax basis, and upon cash flows from operations. Receivables Securitization Program The Company’s accounts receivable securitization program (“Receivables Securitization Program” or the “Program”) provides maximum financing of up to $200 million. The parties to the program are ESND, ECO, Essendant Receivables, LLC (“ESR”), and Essendant Financial Services (“EFS”) and PNC Bank, National Association and the Bank of Tokyo – Mitsubishi UFJ, Ltd New York Branch (the “Investors”). The Program is governed by the following agreements: · The Amended and Restated Transfer and Administration Agreement among ECO, EFS, ESR, and the Investors; · The Receivables Sale Agreement between ECO and EFS; · The Receivables Purchase Agreement between EFS and ESR; and · The Performance Guaranty executed by ESND in favor of ESR. Pursuant to the Receivables Sale Agreement, ECO sells to EFS, on an on-going basis, all the customer accounts receivable and related rights originated by ECO. Pursuant to the Receivables Purchase Agreement, EFS sells to ESR, on an on-going basis, all the accounts receivable and related rights purchased from ECO. Pursuant to the Amended and Restated Transfer and Administration Agreement, ESR then sells the receivables and related rights to the Investors. The Program provides for maximum funding available of the lesser of $200 million or the total amount of eligible receivables less excess concentrations and applicable reserves. EFS retains servicing responsibility over the receivables. ESR is a wholly-owned, bankruptcy remote special purpose subsidiary of EFS. The assets of ESR are not available to satisfy the creditors of any other person, including EFS, ECO or ESND, until all amounts outstanding under the Program are repaid and the Program has been terminated. The receivables sold to the Investors remain on ESND’s Consolidated Balance Sheets, and amounts advanced to ESR by the Investor or any successor Investors are recorded as debt on ESND’s Consolidated Balance Sheets. The cost of such debt is recorded as interest expense on ESND’s Consolidated Statements of Operations. As of December 31, 2015 and 2014, $448.6 million and $360.3 million, respectively, of receivables had been sold to the Investors. As of December 31, 2015, ESR had $200.0 million outstanding under the Program. Credit Agreement and Other Debt On November 25, 2013, ESND and ECO, entered into a Note Purchase Agreement (the “2013 Note Purchase Agreement”) with the note purchasers identified therein (collectively, the “Note Purchasers”). Pursuant to the 2013 Note Purchase Agreement, ECO issued and the Note Purchasers purchased an aggregate of $150 million of senior secured notes due January 15, 2021 (the “2014 Notes”). The issuance of the 2014 Notes occurred on January 15, 2014. ECO used the proceeds from the sale of the 2014 Notes to repay the notes previously issued in 2007 and to reduce borrowings under the 2013 Credit Agreement, which is described below. Interest on the 2014 Notes is payable semi-annually at a rate per annum equal to 3.75%. At the time ECO priced the 2014 Notes, ECO terminated the June 2013 Swap Transaction (as described in Note 19 “Derivative Financial Instruments”). After giving effect to the impact of terminating the June 2013 Swap Transaction, the effective per annum interest rate on the 2014 Notes is 3.66%. The full principal amount of the 2014 Notes matures on January 15, 2021. If ECO elects to prepay some or all of the 2014 Notes prior to January 15, 2021, ECO will be obligated to pay a make-whole amount calculated as set forth in the Agreement. On July 8, 2013, the Company and ECO entered into a Fourth Amended and Restated Five-Year Revolving Credit Agreement (the “2013 Credit Agreement”) with JPMorgan Chase Bank, National Association, as Agent, and the lenders identified therein. The 2013 Credit Agreement extended the maturity date of the loan agreement to July 6, 2018. On June 26, 2015, the Company and its subsidiaries Essendant Co., Essendant Financial Services LLC (“EFS") and Essendant Receivables LLC ("ESR") entered into a Third Omnibus Amendment to Transaction Documents (the “Omnibus Amendment”) with The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch ("BTMU") and PNC Bank, National Association (“PNC Bank”). The Omnibus Agreement amended the transaction documents of the Receivable Securitization Program to reflect rebranded legal entity names. On June 29, 2015, Lagasse, LLC, a subsidiary of Essendant Co. merged into Essendant Co. All accounts receivable originated by Lagasse prior to the merger are excluded from the Program. The Omnibus Agreement amended the Transaction Documents to also exclude “Excluded Receivables” from the Receivables Securitization Program, which are defined as “any receivable which, at the time of such Receivable’s origination, was processed on the [enterprise resource planning system previously used by Lagasse, LLC].” The 2013 Credit Agreement provides for a revolving credit facility with an aggregate committed principal amount of $700 million. The 2013 Credit Agreement also provides for the issuance of letters of credit. The Company had outstanding letters of credit of $11.6 million under the 2013 Credit Agreement as of December 31, 2015. Subject to the terms and conditions of the 2013 Credit Agreement, ECO may seek additional commitments to increase the aggregate committed principal amount to a total amount of $1.05 billion. Borrowings under the 2013 Credit Agreement bear interest at LIBOR for specified interest periods or at the Alternate Base Rate (as defined in the 2013 Credit Agreement), plus, in each case, a margin determined based on the Company’s debt to EBITDA ratio calculated as provided in Section 6.20 of the 2013 Credit Agreement (the “Leverage Ratio”). Depending on the Company’s Leverage Ratio, the margin on LIBOR-based loans ranges from 1.00% to 2.00% and on Alternate Base Rate loans ranges from 0.00% to 1.00%. As of December 31, 2015, the applicable margin for LIBOR-based loans was 1.75% and for Alternate Base Rate loans was 0.75%. In addition, ECO is required to pay the lenders a fee on the unutilized portion of the commitments under the 2013 Credit Agreement at a rate per annum between 0.15% and 0.35%, depending on the Company’s Leverage Ratio. Subject to the terms and conditions of the 2013 Credit Agreement, ECO is permitted to incur up to $300 million of indebtedness in addition to borrowings under the 2013 Credit Agreement plus up to $200 million under the Company’s Receivables Securitization Program and up to $150 million in replacement or refinancing of the 2013 Note Purchase Agreement. ECO has entered into several interest rate swap transactions to mitigate its floating rate risk on a portion of its total long-term debt. See Note 19, “Derivative Financial Instruments”, for further details on these swap transactions and their accounting treatment. Obligations of ECO under the 2013 Credit Agreement and the 2014 Notes are guaranteed by ESND and certain of ECO’s domestic subsidiaries. ECO’s obligations under these agreements and the guarantors’ obligations under the guaranty are secured by liens on substantially all Company assets other than real property and certain accounts receivable already collateralized as part of the Receivables Securitization Program. The 2013 Credit Agreement, the 2014 Notes and the Amended and Restated Transfer and Administration Agreement prohibit the Company from exceeding a leverage ratio of 3.50 to 1.00 (3.75 to 1.00 or 4.00 to 1.00 for the first four fiscal quarters following certain acquisitions). The 2013 Credit Agreement and the 2013 Note Purchase Agreement also impose limits on the Company’s ability to repurchase stock and issue dividends when the leverage ratio is greater than 3.00 to 1.00. The 2013 Credit Agreement, the 2014 Notes, and the Amended and Restated Transfer and Administration Agreement contain additional representations and warranties, covenants and events of default that are customary for these types of agreements. The 2013 Credit Agreement, the 2013 Note Purchase Agreement, and the Amended and Restated Transfer and Administration Agreement contain cross-default provisions. As a result, if a termination event occurs under any of those agreements, the lenders under all of the agreements may cease to make additional loans, accelerate any loans then outstanding and/or terminate the agreements to which they are party. Debt maturities as of December 31, 2015, were as follows (in millions): Year Amount 2018 $ 568.4 2021 150.0 Total $ 718.4 |
Leases, Contractual Obligations
Leases, Contractual Obligations and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Leases Contractual Obligations And Contingencies | 12. Leases, Contractual Obligations and Contingencies The Company has entered into non-cancelable long-term leases for certain property and equipment. Future minimum lease payments under operating leases in effect as of December 31, 2015 having initial or remaining non-cancelable lease terms in excess of one year are as follows (in thousands): Operating Year Leases 2016 $ 48,770 2017 45,665 2018 36,167 2019 32,271 2020 23,657 Thereafter 61,705 Total required lease payments $ 248,235 Operating lease expense was approximately $48.4 million, $45.1 million, and $46.3 million in 2015, 2014 and 2013, respectively. |
Pension Plans and Defined Contr
Pension Plans and Defined Contribution Plan | 12 Months Ended |
Dec. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension Plans and Defined Contribution Plan | 13. Pension Plans and Defined Contribution Plan Pension Plans As of December 31, 2015, the Company has pension plans covering approximately 2,400 of its active associates. Non-contributory plans covering non-union associates provide pension benefits that are based on years of credited service and a percentage of annual compensation. Beginning in 2009, benefits were frozen in the plans covering non-union employees. Non-contributory plans covering union members generally provide benefits of stated amounts based on years of service. The Company funds the plans in accordance with all applicable laws and regulations. The Company uses December 31 as its measurement date to determine its pension obligations. Change in Projected Benefit Obligation The following table sets forth the plans’ changes in Projected Benefit Obligation for the years ended December 31, 2015 and 2014 (in thousands): 2015 2014 Benefit obligation at beginning of year $ 224,086 $ 183,069 Service cost—benefit earned during the period 1,495 1,069 Interest cost on projected benefit obligation 8,997 8,960 Union plan amendments - 1,736 Actuarial (gain) loss (16,846 ) 35,054 Benefits paid (6,343 ) (5,802 ) Benefit obligation at end of year $ 211,389 $ 224,086 The accumulated benefit obligation for the plan as of December 31, 2015 totaled $211.4 million. Plan Assets and Investment Policies and Strategies The following table sets forth the change in the plans’ assets for the years ended December 31, 2015 and 2014 (in thousands): 2015 2014 Fair value of plan assets at beginning of year $ 173,771 $ 162,250 Actual return on plan assets (6,451 ) 15,323 Company contributions 2,000 2,000 Benefits paid (6,343 ) (5,802 ) Fair value of plan assets at end of year $ 162,977 $ 173,771 The Company’s pension plan investment allocations, as a percentage of the fair value of total plan assets, as of December 31, 2015 and 2014, by asset category are as follows: Asset Category 2015 2014 Cash 0.4 % 1.1 % Equity securities 37.8 % 29.6 % Fixed income 40.5 % 45.4 % Real assets 10.8 % 13.6 % Hedge funds 10.5 % 10.3 % Total 100.0 % 100.0 % The investment policies and strategies for the Company’s pension plan assets are established with the goals of generating above-average investment returns over time, while containing risks within acceptable levels and providing adequate liquidity for the payment of plan obligations. The Company recognizes that there typically are tradeoffs among these objectives, and strives to minimize risk associated with a given expected return. The Company’s defined benefit plan assets are measured at fair value on a recurring basis and are invested primarily in a diversified mix of fixed income investments and equity securities. The Company establishes target ranges for investment allocation and sets specific allocations. The target allocations for the non-union plan assets are 45.0% fixed income, 36.0% equity securities, 9.0% real assets, and 10.0% hedge funds. The target allocations for the union plan assets are 16.0% fixed income, 61.0% equity securities, 12.0% real assets and 10.0% hedge funds. Equity securities include investments in large cap and small cap corporations located in the U.S. and a mix of both international and emerging market corporations. Fixed income securities include investment grade bonds and U.S. treasuries. Other types of investments include commodity futures, real estate investment trusts (REITs) and hedge funds. Fair values for equity and fixed income securities are primarily based on valuations for identical instruments in active markets. The fair values of the Company’s pension plan assets at December 31, 2015 and 2014 by asset category are as follows: Fair Value Measurements at December 31, 2015 (in thousands) Quoted Prices In Significant Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Asset Category Total (Level 1) (Level 2) (Level 3) Cash $ 655 $ 655 $ - $ - Equity Securities U.S. Large Cap (a) 23,072 $ 23,072 - - International (b) 18,211 18,211 - - Emerging Markets (c) 13,127 13,127 - - U.S. Small Cap (d) 7,256 7,256 - - Fixed Income U.S. Fixed Income (e) 59,517 59,517 - - U.S. Inflation Protected Bonds (f) 1,236 1,236 High Yield Bonds (g) 2,295 2,295 International Fixed Income (h) 2,900 2,900 Real Assets Domestic Real Estate (i) 10,464 10,464 - - Commodities (j) 7,089 7,089 - - Hedge Funds Hedge Funds (k) 17,155 - 17,155 - Total $ 162,977 $ 145,822 $ 17,155 $ - (a) A daily valued mutual fund investment. The fund invests in publically traded, large capitalization companies domiciled predominantly in the US. (b) A daily valued mutual fund investment. This fund invests in common stocks of companies domiciled in developed market countries outside of the U.S. (c) A daily valued mutual fund investment. The fund invests in publically traded companies domiciled in emerging market countries. (d) Three daily mutual fund investments with different investment styles (one core, one value, one growth) that invest in publicly traded small capitalization companies. The majority of holdings are domiciled in the U.S. though the funds may hold international stocks. (e) Principally consists of a separately managed fixed income portfolio utilized to match the duration of plan liabilities. This liability-driven investment portfolio is comprised of Treasury securities including STRIPS and zero coupon bonds, as well as high quality corporate bonds. Also includes a daily valued mutual fund that invests in publically traded U.S. government, asset-backed, mortgage-backed and corporate fixed-income securities. (f) A daily valued mutual fund investment. The fund invests in publically traded bonds backed by the full faith and credit of the federal government and whose principal is adjusted quarterly based on inflation. (g) A daily valued mutual fund investment. The fund invests in publically traded, higher-quality (top-tier BB and B rated) corporate high yield bonds. (h) A daily valued mutual fund investment. The fund invests in publically traded bonds of governments, agencies and companies domiciled in countries outside of the U.S. (i) A daily valued mutual fund investment. The fund invests in publically traded Real Estate Investment Trusts. This is an index mutual fund that tracks the Morgan Stanley REIT Index. The fund normally invests at least 98% of assets that are included in the Morgan Stanley REIT Index. (j) A daily valued mutual fund investment. This fund combines a commodities position, typically through swap agreements, with a portfolio of inflation indexed bonds and other fixed income securities. The commodities position is constructed to track the performance of the Bloomberg Commodity Index. (k) Two separately managed funds of hedge funds. These funds seek attractive risk-adjusted returns through investments in a well-diversified group of managers that employ a variety of unique investment strategies. They target low volatility and low correlation to traditional asset classes. These funds may allocate their assets among a select group of non-traditional portfolio managers that invest or trade in a wide range of securities and other instruments. Fair Value Measurements at December 31, 2014 (in thousands) Quoted Prices In Significant Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Asset Category Total (Level 1) (Level 2) (Level 3) Cash $ 1,831 $ 1,831 $ - $ - Equity Securities U.S. Large Cap (a) 18,612 18,612 - - International (b) 16,791 16,791 - - Emerging Markets (c) 9,653 9,653 - - U.S. Small Value Fund (d) 5,274 5,274 - - U.S. Small Growth Fund (e) 1,123 1,123 - - Fixed Income U.S. Fixed Income (f) 78,886 78,886 - - Real Assets Domestic Real Estate (g) 13,870 13,870 - - Commodities (h) 9,789 9,789 - - Hedge Funds Hedge Funds (i) 17,941 - 17,941 - Total $ 173,770 $ 155,829 $ 17,941 $ - (a) A separately managed, diversified portfolio consisting of publically traded large cap stocks. The portfolio is predominately comprised of U.S. companies but may also hold international company stock. (b) A daily valued mutual fund investment. The fund invests in publically traded companies domiciled outside the U.S. and includes companies located in emerging market countries. (c) A daily valued mutual fund investment. The fund invests in publically traded companies domiciled in emerging market countries. (d) A daily valued mutual fund investment. The fund invests in publically traded, small capitalization companies that are considered value in style. The majority of holdings are domiciled in the U.S. though the fund may hold international stocks. (e) A daily valued mutual fund investment. The fund invests in publically traded, small capitalization companies that are considered growth in style. The majority of holdings are domiciled in the U.S. though the fund may hold international stocks. (f) A separately managed fixed income portfolio utilized to match the duration of the Plan’s liabilities. This liability driven investment portfolio is comprised of Treasury securities including STRIPS and zero coupon bonds as well as high quality corporate bonds. (g) A daily valued mutual fund investment. The fund invests in publically traded Real Estate Investment Trusts. This is an index mutual fund that tracks the Morgan Stanley REIT Index. The fund normally invests at least 98% of assets that are included in the Morgan Stanley REIT Index. (h) A daily valued mutual fund investment. This fund combines a commodities position, typically through swap agreements, with a portfolio of inflation indexed bonds and other fixed income securities. The commodities position is constructed to track the performance of the Dow Jones UBS Commodity Index. (i) A separately managed fund of hedge funds. This fund seeks attractive risk-adjusted returns through investments in a well-diversified group of managers that employ a variety of unique investment strategies. It targets low volatility and low correlation to traditional asset classes. This fund may allocate its assets among a select group of non-traditional portfolio managers that invest or trade in a wide range of securities and other instruments, including, but not limited to: equities and fixed income securities, currencies, commodities, futures contracts, options and other derivative instruments. This fund was sold prior to December 31, 2014 but the transaction did not settle until January 2015. Plan Funded Status The following table sets forth the plans’ funded status as of December 31, 2015 and 2014 (in thousands): 2015 2014 Funded status of the plan $ (48,412 ) $ (50,316 ) Unrecognized prior service cost 2,869 3,166 Unrecognized net actuarial loss 74,461 79,502 Net amount recognized $ 28,918 $ 32,352 Amounts Recognized in Consolidated Balance Sheets 2015 2014 Accrued benefit liability $ (48,412 ) $ (50,316 ) Accumulated other comprehensive income 77,330 82,668 Net amount recognized $ 28,918 $ 32,352 Components of Net Periodic Benefit Cost Net periodic pension cost for the years ended December 31, 2015, 2014 and 2013 for pension and supplemental benefit plans includes the following components (in thousands): Pension Benefits For the Years Ended December 31, 2015 2014 2013 Service cost - benefit earned during the period $ 1,495 $ 1,069 $ 1,479 Interest cost on projected benefit obligation 8,997 8,960 8,379 Expected return on plan assets (11,217 ) (10,286 ) (11,338 ) Amortization of prior service cost 296 182 192 Amortization of actuarial loss 5,862 3,674 5,741 Net periodic pension cost $ 5,433 $ 3,599 $ 4,453 The estimated net actuarial loss and prior service cost that will be amortized from accumulated other comprehensive loss into the net periodic benefit cost during 2016 are approximately $5.7 million and $0.3 million, respectively. Assumptions Used The following tables summarize the Company’s actuarial assumptions for discount rates, expected long-term rates of return on plan assets: 2015 2014 2013 Pension plan assumptions Assumed discount rate, general 4.52% 4.09% 4.95% Assumed discount rate, union 4.55% 4.16% 5.10% Expected long-term rate of return on plan assets, general 6.50% 6.30% 7.30% Expected long-term rate of return on plan assets, union 6.30% 7.30% 7.75% To select the appropriate actuarial assumptions, management relied on current market conditions, historical information and consultation with and input from the Company’s outside actuaries. The expected long-term rate of return on plan assets assumption is based on historical returns and the future expectation of returns for each asset category, as well as the target asset allocation of the asset portfolio. Contributions In December 2015, the Company’s Board of Directors approved cash contributions to the Company’s pension plans. In January 2016, a cash contribution of $3 million was made to the Essendant Union Employee Pension Plan and $7 million was made to the Essendant Pension Plan. Additional fundings, if any, for 2016 have not yet been determined. Estimated Future Benefit Payments The estimated future benefit payments under the Company’s pension plans, excluding the impact of future lump sum offerings, are as follows (in thousands): Amounts 2016 $ 8,814 2017 8,217 2018 8,072 2019 9,089 2020 10,096 2021-2025 56,163 Defined Contribution Plan The Company has a defined contribution plan. Salaried associates and non-union hourly paid associates are eligible to participate after completing six consecutive months of employment. The plan permits associates to have contributions made as 401(k) salary deferrals on their behalf, or as voluntary after-tax contributions, and provides for Company contributions, or contributions matching associates’ salary deferral contributions, at the discretion of the Board of Directors. Company contributions to match associates’ contributions were approximately $5.9 million, $5.5 million and $5.3 million in 2015, 2014 and 2013, respectively. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Preferred Stock | 14. Preferred Stock ESND’s authorized capital shares include 15 million shares of preferred stock. The rights and preferences of preferred stock are established by ESND’s Board of Directors upon issuance. As of December 31, 2015 and 2014, ESND had no preferred stock outstanding and all 15 million shares are classified as undesignated preferred stock. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. Income Taxes The provision for income taxes consisted of the following (in thousands): For the Years Ended December 31, 2015 2014 2013 Currently Payable Federal $ 67,702 $ 72,513 $ 69,519 State 8,387 8,334 8,027 Foreign 1,614 805 715 Total currently payable 77,703 81,652 78,261 Deferred, net Federal (20,929 ) (9,510 ) (4,491 ) State (1,778 ) (1,085 ) (180 ) Foreign (455 ) (284 ) (83 ) Total deferred, net (23,162 ) (10,879 ) (4,754 ) Provision for income taxes $ 54,541 $ 70,773 $ 73,507 (1) Certain prior period amounts have been reclassified to conform to the current presentation. Such reclassifications include changes between categories. These changes did not impact the Consolidated Statements of Operations. The Company’s effective income tax rates for the years ended December 31, 2015, 2014 and 2013 varied from the statutory federal income tax rate as set forth in the following table (in thousands): Years Ended December 31, 2015 2014 2013 Amount % of Pre-tax Income Amount % of Pre-tax Income Amount % of Pre-tax Income Tax provision based on the federal statutory rate $ 3,569 35.0 % $ 64,011 35.0 % $ 68,446 35.0 % State and local income taxes—net of federal income tax benefit 374 3.6 % 4,362 2.4 % 5,141 2.6 % Impairment of goodwill 47,468 465.5 % (4 ) 0.0 % - 0.0 % Valuation allowances 1,217 11.9 % 3,027 1.7 % - 0.0 % Non-deductible and other 1,913 18.8 % (623 ) -0.4 % (80 ) 0.0 % Provision for income taxes $ 54,541 534.8 % $ 70,773 38.7 % $ 73,507 37.6 % (1) Certain prior period amounts have been reclassified to conform to the current presentation. Such reclassifications include changes between categories. These changes did not impact the Consolidated Statements of Operations. The deferred tax assets and liabilities resulted from temporary differences in the recognition of certain items for financial and tax accounting purposes. The sources of these differences and the related tax effects were as follows (in thousands): As of December 31, 2015 2014 Assets Liabilities Assets Liabilities Accrued expenses $ 14,287 $ - $ 12,299 $ - Allowance for doubtful accounts 10,355 - 7,218 - Depreciation and amortization - 24,362 - 26,816 Intangibles arising from acquisitions - 25,034 - 22,184 Inventory reserves and adjustments - 16,086 - 20,164 Pension and post-retirement 14,889 - 18,797 - Share-based compensation 5,721 - 5,653 - Income tax credits, capital losses, and net operating losses 14,462 - 12,550 - Restructuring costs 5,442 - 273 - Other 1,026 - 842 - Total Deferred 66,182 65,482 57,632 69,164 Valuation Allowance (9,189 ) - (7,397 ) - Net Deferred $ 56,993 $ 65,482 $ 50,235 $ 69,164 (1) Certain prior period amounts have been reclassified to conform to the current presentation. Such reclassifications include changes between categories. These changes did not impact the Consolidated Statements of Operations. In the Consolidated Balance Sheets, for years prior to December 31, 2015, these deferred assets and liabilities were classified on a net basis as current and non-current, based on the classification of the related asset or liability or the expected reversal date of the temporary difference. During November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes”, which simplifies the presentation of deferred income taxes. This ASU requires that deferred tax assets and liabilities be classified as non-current in a statement of financial position. We early adopted ASU 2015-17 effective December 31, 2015 on a prospective basis. Adoption of this ASU resulted in a reclassification of our net current deferred tax asset to the net non-current deferred tax liability in our Consolidated Balance Sheet as of December 31, 2015. No Valuation allowances principally relate to federal capital loss carryovers, state tax credits, and net operating losses. As of December 31, 2015, the Company has capital loss carryforwards of $12.1 million that expire by 2020, state tax credit carryforwards of $9.9 million that expire by 2020, state net operating loss carryforwards of $0.7 million that expire by 2033, and acquired federal net operating losses of $4.6 million that expire by 2031. Accounting for Uncertainty in Income Taxes At December 31, 2015, 2014, and 2013, the gross unrecognized tax benefits were $3.4 million, $3.2 million, and $3.1 million, respectively. The following table shows the changes in gross unrecognized tax benefits, for the years ended December 31, 2015, 2014 and 2013 (in thousands): 2015 2014 2013 Beginning Balance, January 1 $ 3,205 $ 3,108 $ 3,134 Additions based on tax positions taken during a prior period 1 123 169 Reductions based on tax positions taken during a prior period (14 ) (11 ) (5 ) Additions based on tax positions taken during the current period 425 382 389 Reductions related to settlement of tax matters (46 ) (70 ) (184 ) Reductions related to lapses of applicable statutes of limitation (221 ) (327 ) (395 ) Ending Balance, December 31 $ 3,350 $ 3,205 $ 3,108 The total amount of unrecognized tax benefits as of December 31, 2015, 2014 and 2013 that, if recognized, would affect the effective tax rate are $2.2 million, $2.1 million, and $2.0 million, respectively. The Company recognizes net interest and penalties related to unrecognized tax benefits in income tax expense. The gross amount of interest and penalties reflected in the Consolidated Statements of Operations for the years ended December 31, 2015, 2014 and 2013 were $0.1, zero, and zero, respectively. The Consolidated Balance Sheets at December 31, 2015 and 2014 include $0.6 million accrued for the potential payment of interest and penalties. As of December 31, 2015, the Company’s U.S. Federal income tax returns for 2012 and subsequent years remain subject to examination by tax authorities. In addition, the Company’s state income tax returns for the 2008 and subsequent tax years remain subject to examinations by state and local income tax authorities. Although the Company is not currently under examination by the IRS, a number of state and local examinations are currently ongoing. Due to the potential for resolution of ongoing examinations and the expiration of various statutes of limitation, it is reasonably possible that the Company’s gross unrecognized tax benefits balance may change within the next twelve months by a range of zero to $1.0 million. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | 16. Supplemental Cash Flow Information In addition to the information provided in the Consolidated Statements of Cash Flows, the following are supplemental disclosures of cash flow information for the years ended December 31, 2015, 2014 and 2013 (in thousands): Years Ended December 31 2015 2014 2013 Cash Paid During the Year For: Interest 19,275 12,822 12,385 Income taxes, net 76,330 76,205 79,526 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 17. Fair Value of Financial Instruments The estimated fair value of the Company’s financial instruments approximates their net carrying values. The estimated fair values of the Company’s financial instruments are as follows (in thousands): As of December 31, 2015 2014 Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 29,983 $ 29,983 $ 20,812 $ 20,812 Accounts receivable, net 716,537 716,537 702,527 702,527 Foreign exchange hedge asset 91 91 - - Convertible note receivable - - 6,775 6,775 Non-convertible note receivable - - 2,800 2,800 Accounts payable 531,949 531,949 485,241 485,241 Debt 716,315 716,315 710,768 710,768 Long-term interest rate swap liability 469 469 253 253 The fair value of the foreign exchange hedge is estimated based upon quoted market rates and the fair value of the interest rate swaps is estimated based upon the amount that the Company would receive or pay to terminate the agreements as of December 31 of each year. See Note 19, “Derivative Financial Instruments”, for further information. The convertible and non-convertible notes disclosed above were part of the consideration received in the sale of MBS Dev in the fourth quarter of 2014. In 2015, the Company determined that both notes were fully impaired and recorded a pre-tax loss for the carrying amount of these notes. See Note 20 “Fair Value Measurements” for additional information. |
Other Assets and Liabilities
Other Assets and Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Other Assets And Liabilities [Abstract] | |
Other Assets and Liabilities | 18. Other Assets and Liabilities Other assets and liabilities as of December 31, 2015 and 2014 were as follows (in thousands): As of December 31, 2015 2014 Other Long-Term Assets: Investment in deferred compensation $ 5,440 $ 4,984 Long-term prepaid assets 26,291 19,055 Long-term convertible and non-convertible notes receivable - 9,575 Long-term income tax asset 3,412 2,881 Other 2,205 2,174 Total other long-term assets $ 37,348 $ 38,669 Other Long-Term Liabilities: Accrued pension obligation $ 48,412 $ 50,316 Deferred rent 18,948 16,241 Deferred directors compensation 5,453 5,016 Long-term swap liability 469 253 Long-term income tax liability 3,832 3,639 Long-term merger expenses 12,965 17,229 Long-term workers compensation liability 8,039 7,155 Other 3,370 4,545 Total other long-term liabilities $ 101,488 $ 104,394 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 19. Derivative Financial Instruments The Company selectively uses derivative financial instruments to reduce its exposure to changes in interest rates and foreign currency exchange rates. Under Company policy, the Company does not enter into derivative financial instruments for trading or speculative purposes. A description of each type of derivative utilized by the Company to manage risk is included in the following paragraphs. The Company selectively uses interest rate swaps to reduce market risk associated with changes in interest rates for its debt arrangements. In July 2012, the Company entered into an interest rate swap to convert a portion of the Company’s floating-rate debt to a fixed-rate basis. The fair value is determined by using quoted market forward rates (level 2 inputs) and reflect the present value of the amount that the Company would pay for contracts involving the same notional amounts and maturity dates. The changes in fair value of this instrument is reported in AOCI and reclassified into earnings in interest expense in the same periods during which the related interest payments on the hedged debt affect earnings. This swap matures in July 2017. As of December 31, 2015 and 2014, the fair value of the Company's interest rate swap included in the Company’s Consolidated Balance Sheet as a component of “Other long-term liabilities” was $0.5 million and $0.3 million, respectively. Approximately 42% of the Company’s current outstanding debt as of December 31, 2015 is fixed with the issuance of a $150 million Private Placement note and a $150 million interest rate swap. Under the terms of the July 2012 Swap Transaction, ECO is required to make monthly fixed rate payments to the counterparty calculated based on the notional amount of $150 million at a fixed rate of 1.05%, while the counterparty will be obligated to make monthly floating rate payments to ECO based on the one-month LIBOR on the same referenced notional amount. The Company’s agreement with its derivative counterparty provides that if an event of default occurs on any Company debt of $25 million or more, the counterparty can terminate the swap agreement. If an event of default had occurred and the counterparty had exercised their early termination right under the outstanding swap transaction as of December 31, 2015, the Company would have been obligated to pay the aggregate fair value net liability of $0.5 million plus accrued interest to the counterparty. During the third quarter of 2015, the Company implemented a foreign currency cash flow hedge program in order to manage the volatility in exchange rates and the related impacts on the operations of its Canadian subsidiaries. The Company uses foreign currency exchange contracts to hedge certain of its foreign exchange rate exposures related to inventory purchases. The Company has currently hedged approximately 25%, or $2.2 million, of its Canadian subsidiaries’ US dollar denominated inventory purchases for the next two quarters. The fair value of the foreign currency cash flow hedge is determined by using quoted market spot rates (level 2 inputs). The changes in fair value of ASC 815 designated hedges are reported in AOCI and reclassified into earnings in cost of goods sold in the same periods during which the related inventory is sold and affects earnings. The hedge transactions described above qualify as cash flow hedges in accordance with accounting guidance on derivative instruments. This guidance requires companies to recognize all of their derivative instruments as either assets or liabilities in the statement of financial position at fair value. The Company does not offset fair value amounts recognized for hedge transactions executed with the same counterparty. By using such derivative financial instruments, the Company exposes itself to credit risk and market risk. Credit risk is the risk that the counterparty to the hedge transaction will fail to perform under the terms of the agreement. The Company attempts to minimize the credit risk in these agreements by only entering into transactions with counterparties the Company determines are creditworthy. The market risk is the adverse effect on the value of a derivative financial instrument that results from a change in interest rates and foreign currency exchange rates. The derivative instruments that were in effect as of December 31, 2015 and 2014 contained no ineffectiveness; therefore, all gains or losses on the derivative instruments were reported as a component of other comprehensive income (“OCI”) and reclassified into earnings as “interest expense” or “cost of goods sold” in the same period or periods during which they affected earnings. The following table depicts the effect of these derivative instruments on the statements of operations and comprehensive income for the years ended December 31, 2015 and 2014. Derivatives in ASC 815 Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) 2015 2014 2015 2014 Interest Rate Swap $ 1,177 $ 105 Interest expense, net $ 1,309 $ 625 Foreign Exchange Hedges 147 - Cost of goods sold (9 ) - |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 20. Fair Value Measurements FASB accounting guidance on fair value establishes a hierarchy for those instruments measured at fair value which distinguishes between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). The hierarchy consists of three levels: · Level 1—Quoted market prices in active markets for identical assets or liabilities; · Level 2—Inputs other than Level 1 inputs that are either directly or indirectly observable; and · Level 3—Unobservable inputs developed using estimates and assumptions developed by the Company which reflect those that a market participant would use. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter. Fair Value Measurements as of December 31, 2015 Quoted Market Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs Total Level 1 Level 2 Level 3 Assets Foreign exchange hedge asset $ 91 $ - $ 91 $ - Liabilities Interest rate swap liability 469 - 469 - Fair Value Measurements as of December 31, 2014 Quoted Market Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs Total Level 1 Level 2 Level 3 Assets Convertible note receivable $ 6,775 $ - $ - $ 6,775 Non-convertible note receivable 2,800 - - 2,800 Liabilities Interest rate swap liability 253 - 253 - Total $ 9,828 $ - $ 253 $ 9,575 The carrying amount of accounts receivable at December 31, 2015 and 2014, including $448.6 million and $360.3 million, respectively, of receivables sold under the Current Receivables Securitization Program, approximates fair value because of the short-term nature of this item. The notes above were obtained as part of the consideration received from the sale of MBS Dev in December 2014. Both have maturity dates of December 16, 2019. The convertible note can be converted into common units of a privately held company at the Company’s discretion. Both notes are carried at fair market value, which is revalued quarterly. The non-convertible promissory note was valued using a discounted cash flow analysis with a rate typical for investments in similar-sized companies. The convertible subordinated promissory note was additionally valued using an option pricing model. This method values the conversion feature by using the price paid per share by the most recent, third-party investor. During 2015, an allowance was established for these notes, so that their value was fully impaired. As of December 31, 2015, no assets or liabilities are measured at fair value on a nonrecurring basis. |
Legal Matters
Legal Matters | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Legal Matters | 21. Legal Matters The Company has been named as a defendant in two lawsuits alleging that the Company sent unsolicited fax advertisements to the named plaintiffs, as well as other persons and entities, in violation of the Telephone Consumer Protection Act of 1991, as amended by the Junk Fax Prevention Act of 2005 ("TCPA"). One lawsuit was filed in the United States District Court for the Central District of California on May 1, 2015. The case is presently stayed. The other lawsuit was filed in the United States District Court for the Northern District of Illinois on January 14, 2016. In both lawsuits the plaintiffs filed a motion asking the Court to certify a class of plaintiffs comprised of persons and entities who allegedly received fax advertisements from the Company. Under the TCPA, recipients of unsolicited fax advertisements can seek damages of $500 per fax for inadvertent violations and up to $1,500 per fax for knowing and willful violations. Other reported TCPA lawsuits have resulted in a broad range of outcomes, with each case being dependent on its own unique set of facts and circumstances. In each lawsuit, the Company is vigorously contesting class certification and denies that any violations occurred. Litigation of this kind, however, is likely to lead to settlement negotiations, including negotiations prompted by pre-trial civil court procedures. Regardless of whether the lawsuits are resolved at trial or through settlement, the Company believes that a loss associated with resolution of pending claims is probable. However, the amount of any such loss, which could be material, cannot be reasonably estimated because the Company is continuing to evaluate its defenses based on its internal review and investigation of prior events, new information and future circumstances. The Company is also involved in other legal proceedings arising in the ordinary course of or incidental to its business. The Company has established reserves, which are not material, for potential losses that are probable and reasonably estimable that may result from those proceedings. In many cases, however, it is difficult to determine whether a loss is probable or even possible or to estimate the amount or range of potential loss, particularly where proceedings may be in relatively early stages or where plaintiffs are seeking substantial or indeterminate damages. Matters frequently need to be more developed before a loss or range of loss can reasonably be estimated. The Company believes that such ordinary course legal proceedings will be resolved with no material adverse effect upon its financial condition or results of operations. |
Quarterly Financial Data-Unaudi
Quarterly Financial Data-Unaudited | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data-Unaudited | 22. Quarterly Financial Data—Unaudited First Quarter Second Quarter Third Quarter Fourth Quarter Total (1) (dollars in thousands, except per share data) Year Ended December 31, 2015: Net sales $ 1,332,375 $ 1,341,799 $ 1,391,545 $ 1,297,327 $ 5,363,046 Gross profit 200,395 210,119 225,143 200,838 836,495 Net income (loss) (2) (6,007 ) 29,834 27,667 (95,836 ) (44,342 ) Net income (loss) per share—basic $ (0.16 ) $ 0.79 $ 0.74 $ (2.61 ) $ (1.18 ) Net income (loss) per share—diluted (3) $ (0.16 ) $ 0.78 $ 0.74 $ (2.61 ) $ (1.18 ) Year Ended December 31, 2014: Net sales $ 1,254,139 $ 1,320,037 $ 1,419,947 $ 1,333,082 $ 5,327,205 Gross profit 180,878 195,552 216,701 209,398 802,529 Net income (4) 19,292 30,522 40,231 22,070 112,115 Net income per share—basic $ 0.49 $ 0.79 $ 1.05 $ 0.57 $ 2.90 Net income per share—diluted $ 0.49 $ 0.78 $ 1.03 $ 0.57 $ 2.87 (1) As a result of changes in the number of common and common equivalent shares during the year, the sum of quarterly earnings per share will not necessarily equal earnings per share for the total year. (2) 2015 results were impacted by: First Quarter Second Quarter Third Quarter Fourth Quarter Total (dollars in millions) ORS Industrial inventory obsolescence reserve and impairment of goodwill and intangible assets $ - $ - $ - $ 120.7 $ 120.7 Workforce reduction and facility closure charge 6.4 (0.1 ) 0.2 12.1 18.6 Intangible asset impairment charge and accelerated amortization related to rebranding 10.5 0.5 0.5 0.5 12.0 Notes receivable impairment - - 10.7 - 10.7 Loss on disposition of business 13.6 1.4 2.1 - 17.0 (3) Diluted earnings per share for the fourth quarter of 2015 under GAAP reflect an adjustment to the basic earnings per share due to the net loss. (4) 2014 results were impacted by a loss on disposition of MBS Dev totaling $8.2 million in the fourth quarter. This loss was not fully recognizable for tax. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | SCHEDULE II ESSENDANT INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS YEARS ENDED DECEMBER 31, 2015, 2014 and 2013 Description (in thousands) Balance at Beginning of Period Additions Charged to Costs and Expenses Deductions (1) Reclassifications (2) Balance at End of Period Allowance for doubtful accounts (3) 2015 $ 19,725 $ 3,231 $ (5,146 ) $ - $ 17,810 2014 20,608 4,898 (5,781 ) - 19,725 2013 22,716 4,888 (6,504 ) (492 ) 20,608 (1)—net of any recoveries. (2)—represents the reclassification of a valuation allowance for customer deductions which also offsets accounts receivable. (3)—represents allowance for doubtful accounts related to the retained interest in receivables sold and accounts receivable, net. |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company. All significant intercompany accounts and transactions have been eliminated in consolidation. For all acquisitions, account balances and results of operations are included in the Consolidated Financial Statements as of the date acquired. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Actual results could differ from these estimates. Various assumptions and other factors underlie the determination of significant accounting estimates. The process of determining significant estimates is fact specific and takes into account factors such as historical experience, current and expected economic conditions, product mix, and in some cases, actuarial techniques. The Company periodically reevaluates these significant factors and makes adjustments where facts and circumstances dictate. |
Revenue Recognition | Revenue Recognition Revenue is recognized when a service is rendered or when title to the product has transferred to the customer. Management records an estimate for future product returns related to revenue recognized in the current period. This estimate is based on historical product return trends and the gross margin associated with those returns. Management also records customer rebates that are based on annual sales volume to the Company’s customers. Annual rebates earned by customers include growth components, volume hurdle components, and advertising allowances. Shipping and handling costs billed to customers are treated as revenues and recognized at the time title to the product has transferred to the customer. Freight costs are included in the Company’s Consolidated Financial Statements as a component of cost of goods sold and are not netted against shipping and handling revenues. Net sales do not include sales tax charged to customers. The Company owned a software service provider from 2010 to 2014. The subsidiary’s revenue was generated from the sale of software licenses, delivery of subscription services (including the right to use software and software maintenance services), and professional services. Revenue was recognized when persuasive evidence of an arrangement existed, delivery occurred, the fees were fixed and determinable, and collection was considered probable. If collection was not considered probable, the Company recognized revenue when the fees were collected. If fees were not fixed and determinable, the Company recognized revenues when the fees became due from the customer. This entity was sold in 2014 and, therefore, the Company no longer had such contracts beginning in 2015. |
Customer Rebates | Customer Rebates Customer rebates and discounts are common practice in the business products industry and have a significant impact on the Company’s overall sales and gross margin. Customer rebates include volume rebates, sales growth incentives, advertising allowances, participation in promotions and other miscellaneous discount programs. These rebates are paid to customers monthly, quarterly and/or annually. Such rebates are reported in the Consolidated Financial Statements as a reduction of sales. Accrued customer rebates were $63.6 million and $63.2 million as of December 31, 2015 and 2014, respectively, and are included as a component of “Accrued liabilities” in the Consolidated Balance Sheets. |
Share-Based Compensation | Share-Based Compensation At December 31, 2015, the Company had two active share-based employee compensation plans covering key associates and/or non-employee directors of the Company. See Note 5 “Share-Based Compensation” to the Consolidated Financial Statements for more information. |
Cash Equivalents | Cash Equivalents An unfunded check balance (payments in-transit) exists for the Company’s primary disbursement accounts. Under the Company’s cash management system, the Company utilizes available borrowings, on an as-needed basis, to fund the clearing of checks as they are presented for payment. As of December 31, 2015, and 2014, outstanding checks totaling $46.0 million and $62.1 million, respectively, were included in “Accounts payable” in the Consolidated Balance Sheets. |
Accounts Receivable | Accounts Receivable In the normal course of business, the Company extends credit to customers. Accounts receivable, as shown in the Consolidated Balance Sheets, include such trade accounts receivable and are net of allowances for doubtful accounts and anticipated discounts. The Company makes judgments as to the collectability of trade accounts receivable based on historical trends and future expectations. Management estimates an allowance for doubtful accounts, which addresses the collectability of trade accounts receivable. This allowance adjusts gross trade accounts receivable downward to its estimated collectible or net realizable value. To determine the allowance for doubtful accounts, management reviews specific customer risks and the Company’s trade accounts receivable aging. Uncollectible trade receivable balances are written off against the allowance for doubtful accounts when it is determined that the trade receivable balance is uncollectible. |
Supplier Allowances | Supplier Allowances Supplier allowances (fixed or variable) are common practice in the business products industry and have a significant impact on the Company’s overall gross margin. Receivables related to supplier allowances totaled $111.0 million and $124.4 million as of December 31, 2015 and 2014, respectively. These receivables are included in “Accounts receivable” in the Consolidated Balance Sheets. The majority of the Company’s annual supplier allowances and incentives are variable, based solely on the volume and mix of the Company’s product purchases from suppliers. These variable allowances are recorded based on the Company’s annual inventory purchase volumes and product mix and are included in the Company’s Consolidated Financial Statements as a reduction to cost of goods sold, thereby reflecting the net inventory purchase cost. The remaining portion of the Company’s annual supplier allowances and incentives are fixed and are earned based primarily on supplier participation in specific Company advertising and marketing publications. Fixed allowances and incentives are taken to income through cost of goods sold as inventory is sold. Supplier allowances and incentives attributable to unsold inventory are carried as a component of net inventory cost. |
Inventories | Inventories During the third quarter of 2015, the Company elected a change in accounting principle for the valuation method of certain inventories. This change required a retrospective application to all periods presented. See Note 3, “Change in Accounting Principles,” for further details. Approximately 98.4% and 97.0% of total inventory as of December 31, 2015 and 2014, respectively has been valued under the last-in, first-out (“LIFO”) accounting method. LIFO results in a better matching of costs and revenues. The remaining inventory, which is not domestic, is valued under the first-in, first-out (“FIFO”) accounting method. Inventory valued under the FIFO and LIFO accounting methods is recorded at the lower of cost or market. If the Company had valued its entire inventory under the lower of FIFO cost or market, inventory would have been $147.8 million (includes $1.6 million LIFO reserve related to Nestor acquired in 2015) and $139.5 million higher than reported as of December 31, 2015 and December 31, 2014, respectively. The annual change in the LIFO reserve as of December 31, 2015, December 31, 2014 and December 31, 2013 resulted in an $8.3 million increase, an $17.4 million increase and an $6.2 million increase, respectively, in cost of goods sold. The change in the LIFO reserve in 2015 included a LIFO liquidation relating to decrements in three of the Company’s thirteen LIFO pools. These decrements resulted in liquidation of LIFO inventory quantities carried at lower costs in prior years as compared with the cost of current year purchases. This liquidation resulted in LIFO income of $1.1 million which was more than offset by LIFO expense of $7.8 million related to current inflation for an overall net increase in cost of sales of $6.7 million. The change in the LIFO reserve in 2014 included a LIFO liquidation relating to decrements in three of the Company’s seven LIFO pools. These decrements resulted in liquidation of LIFO inventory quantities carried at lower costs in prior years as compared with the cost of current year purchases. This liquidation resulted in LIFO income of $0.9 million which was more than offset by LIFO expense of $18.3 million related to current inflation for an overall net increase in cost of sales of $17.4 million. The change in the LIFO reserve in 2013 included a LIFO liquidation relating to a decrement in one of the Company’s five LIFO pools. This decrement resulted in liquidation of LIFO inventory quantities carried at lower costs in prior years as compared with the cost of current year purchases. This liquidation resulted in LIFO income of $0.3 million which was more than offset by LIFO expense of $6.5 million related to current inflation for an overall net increase in cost of sales of $6.2 million. The Company also records adjustments to inventory for shrinkage. Inventory that is obsolete, damaged, defective or slow moving is recorded at the lower of cost or market. These adjustments are determined using historical trends and are adjusted, if necessary, as new information becomes available. The Company charges certain warehousing and administrative expenses to inventory each period with $46.1 million, $44.7 million, and $43.0 million remaining in inventory as of December 31, 2015, December 31, 2014, and December 31, 2013, respectively. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is recorded at cost. Depreciation and amortization are determined by using the straight-line method over the estimated useful lives of the assets. The estimated useful life assigned to fixtures and equipment is from two to ten years; the estimated useful life assigned to buildings does not exceed forty years; leasehold improvements are amortized over the lesser of their useful lives or the term of the applicable lease. Repair and maintenance costs are charged to expense as incurred. |
Software Capitalization | Software Capitalization The Company capitalizes internal use software development costs in accordance with guidance on accounting for costs of computer software developed or obtained for internal use. Amortization is recorded on a straight-line basis over the estimated useful life of the software, generally not to exceed ten years. Capitalized software is included in “Property, plant and equipment” on the Consolidated Balance Sheets. The total costs are as follows (in thousands): As of December 31, 2015 2014 Capitalized software development costs $ 98,873 $ 91,624 Accumulated amortization (73,723 ) (65,951 ) Net capitalized software development costs $ 25,150 $ 25,673 |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is initially recorded based on the premium paid for acquisitions and is subsequently tested for impairment. Intangible assets are initially recorded at their fair market values determined on quoted market prices in active markets, if available, or recognized valuation models. Intangible assets that have finite useful lives are amortized on a straight-line basis over their useful lives. Intangible assets that have indefinite useful lives are not amortized but are tested at least annually for impairment or whenever events or circumstances indicate impairment may have occurred. See Note 6 “Goodwill and Intangible Assets” to the Consolidated Financial Statements. |
Insured Loss Liability Estimates | Insured Loss Liability Estimates The Company is primarily responsible for retained liabilities related to workers’ compensation, vehicle, and certain employee health benefits. The Company records expense for paid and open claims and an expense for claims incurred but not reported based upon historical trends and certain assumptions about future events. The Company has an annual per-person maximum cap, provided by a third-party insurance company, on certain employee medical benefits. In addition, the Company has a per-occurrence maximum on workers’ compensation and auto claims. |
Leases | Leases The Company leases real estate and personal property under operating leases. Certain operating leases include incentives from landlords including, landlord “build-out” allowances, rent escalation clauses and rent holidays or periods in which rent is not payable for a certain amount of time. The Company accounts for landlord “build-out” allowances as deferred rent at the time of possession and amortizes this deferred rent on a straight-line basis over the term of the lease. The Company also recognizes leasehold improvements associated with the “build-out” allowances and amortizes these improvements over the shorter of the term of the lease or the expected life of the respective improvements. The Company accounts for rent escalation and rent holidays as deferred rent at the time of possession and amortizes this deferred rent on a straight-line basis over the term of the lease. As of December 31, 2015, any capital leases to which the Company is a party are immaterial to the Company’s financial statements. |
Pension Benefits | Pension Benefits Calculating the Company’s obligations and expenses related to its pension requires selection and use of certain actuarial assumptions. As more fully discussed in Note 13 to the Consolidated Financial Statements, these actuarial assumptions include discount rates, expected long-term rates of return on plan assets, and life expectancy of plan participants. To select the appropriate actuarial assumptions, management relies on current market conditions and historical information. Pension expense for 2015 was $5.4 million, compared to $3.6 million and $4.5 million in 2014 and 2013, respectively. |
Derivative Financial Instruments | Derivative Financial Instruments The Company’s risk management policies allow for the use of derivative financial instruments to manage foreign currency exchange rate and interest rate exposure subject to the management, direction and control of its financial officers. Risk management practices, including the use of all derivative financial instruments, are presented to the Board of Directors for approval. The policies do not allow such derivative financial instruments to be used for speculative purposes. All derivatives are recognized on the balance sheet date at their fair value. See Note 19, “Derivative Financial Instruments” for further detail. The Company’s interest rate swap is classified as a cash flow hedge in accordance with accounting guidance on derivative instruments and hedging activities as it is hedging the variability of cash flow to be paid by the Company. The Company uses foreign currency exchange contracts to hedge certain of its foreign exchange rate exposures related to inventory purchases, and classifies the designation contracts as cash flow hedges. Changes in the fair value are recorded in other comprehensive income, net of tax, until earnings are affected by the forecasted transaction or the variability of cash flow, and then are reported in current earnings. The Company formally documents all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives designated as cash flow hedges to specific forecasted transactions or variability of cash flow. The Company formally assesses, at both the hedge’s inception and on an ongoing basis, whether the derivatives used in hedging transactions are highly effective in offsetting changes in cash flow of hedged items. When it is determined that a derivative is not highly effective as a hedge then hedge accounting is discontinued prospectively in accordance with accounting guidance on derivative instruments and hedging activities. |
Income Taxes | Income Taxes The Company accounts for income taxes using the liability method in accordance with the accounting guidance for income taxes. The Company estimates actual current tax expense and assesses temporary differences that exist due to differing treatments of items for tax and financial statement purposes. These temporary differences result in the recognition of deferred tax assets and liabilities. A provision has not been made for deferred U.S. income taxes on the undistributed earnings of the Company’s foreign subsidiaries as these earnings have historically been permanently invested except to the extent a liability was recorded in purchase accounting for the undistributed earnings of the foreign subsidiaries of O.K.I. Supply Co. as of the date of the acquisition. It is not practicable to determine the amount of unrecognized deferred tax liability for such unremitted foreign earnings. The current and deferred tax balances and income tax expense recognized by the Company are based on management’s interpretation of the tax laws of multiple jurisdictions. Income tax expense also reflects the Company’s best estimates and assumptions regarding, among other things, the level of future taxable income, interpretation of tax laws, and tax planning. Future changes in tax laws, changes in projected levels of taxable income, and tax planning could impact the effective tax rate and current and deferred tax balances recorded by the Company. Management’s estimates as of the date of the Consolidated Financial Statements reflect its best judgment giving consideration to all currently available facts and circumstances. As such, these estimates may require adjustment in the future, as additional facts become known or as circumstances change. Further, in accordance with the accounting guidance on income taxes, the tax effects from uncertain tax positions are recognized in the Consolidated Financial Statements, only if it is more likely than not that the position will be sustained upon examination, based on the technical merits of the position. The Company accounts for interest and penalties related to uncertain tax positions as a component of income tax expense. |
Foreign Currency Translation | Foreign Currency Translation The functional currency for the Company’s foreign operations is the local currency. Assets and liabilities of these operations are translated into U.S. currency at the rates of exchange at the balance sheet date. The resulting translation adjustments are included in other comprehensive income (loss) in the Consolidated Statements of Comprehensive Income, a separate component of stockholders’ equity. Income and expense items are translated at average monthly rates of exchange. Realized gains and losses from foreign currency transactions included a $11.1 million loss related to the sale of the Mexican subsidiary in 2015. |
New Accounting Pronouncements | New Accounting Pronouncements In September 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-16, “ Simplifying the Accounting for Measurement-Period Adjustments (Topic 805): Business Combinations, In April 2015, the FASB issued ASU No. 2015-05, “ Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” In June 2014, the FASB issued ASU No. 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved After the Requisite Service Period In May 2014, the FASB issued ASU No. 2014-09, Revenue From Contracts With Customers Revenue from Contracts with Customers, |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Capitalized Software Included in Property, Plant and Equipment | Capitalized software is included in “Property, plant and equipment” on the Consolidated Balance Sheets. The total costs are as follows (in thousands): As of December 31, 2015 2014 Capitalized software development costs $ 98,873 $ 91,624 Accumulated amortization (73,723 ) (65,951 ) Net capitalized software development costs $ 25,150 $ 25,673 |
Change in Accounting Principl34
Change in Accounting Principles (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Summary of adjustments made to the consolidated financial statements | (dollars in thousands) Years Ended December 31, 2014 2013 Previous Method As Reported Effect of Change Previous Method As Reported Effect of Change Consolidated Statement of Income Cost of goods sold (A) $ 4,516,704 $ 4,524,676 $ 7,972 $ 4,295,715 $ 4,297,952 $ 2,237 Gross profit (A) 810,501 802,529 (7,972 ) 789,578 787,341 (2,237 ) Warehousing, marketing, and administrative expenses (A) 592,050 595,673 3,623 579,245 578,958 (287 ) Income before income taxes (A) 194,483 182,888 (11,595 ) 197,510 195,560 (1,950 ) Income tax expense (A) 75,285 70,773 (4,512 ) 74,340 73,507 (833 ) Net income (A) 119,198 112,115 (7,083 ) 123,170 122,053 (1,117 ) Net income per share (A) Basic (A) $ 3.08 $ 2.90 $ (0.18 ) $ 3.11 $ 3.08 $ (0.03 ) Diluted (A) $ 3.05 $ 2.87 $ (0.18 ) $ 3.06 $ 3.03 $ (0.03 ) Consolidated Statement of Comprehensive Income Net income (A) $ 119,198 $ 112,115 $ (7,083 ) $ 123,170 $ 122,053 $ (1,117 ) Comprehensive income (A) 96,295 89,212 (7,083 ) 137,047 135,930 (1,117 ) Consolidated Statement of Financial Position Inventories (A) $ 926,809 $ 906,430 $ (20,379 ) $ 830,295 $ 821,511 $ (8,784 ) Other current assets (A) 30,042 30,713 671 29,255 29,255 - Other long-term assets (B) 41,810 38,669 (3,141 ) 25,576 22,185 (3,391 ) Accrued liabilities (A) 192,792 185,535 (7,257 ) 191,531 188,115 (3,416 ) Long-term debt (B) 713,058 709,917 (3,141 ) 533,324 529,933 (3,391 ) Retained earnings (A) 1,541,675 1,529,224 (12,451 ) 1,444,238 1,438,870 (5,368 ) Consolidated Statement of Cash Flows Net income (A) $ 119,198 $ 112,115 $ (7,083 ) $ 123,170 $ 122,053 $ (1,117 ) Deferred income taxes (A) (6,367 ) (10,879 ) (4,512 ) (3,921 ) (4,754 ) (833 ) Inventories (A) (30,319 ) (18,724 ) 11,595 (66,627 ) (64,677 ) 1,950 Cash provided by operating activities (A) 77,133 77,133 - 74,737 74,737 - Consolidated Statement of Shareholders’ Equity Retained earnings at beginning of year (A) $ 1,444,238 $ 1,438,870 $ (5,368 ) $ 1,343,437 $ 1,339,186 $ (4,251 ) Retained earnings at end of year (A) 1,541,675 1,529,224 (12,451 ) 1,444,238 1,438,870 (5,368 ) (A) Change related to Inventory Valuation (B) Change related to Debt Issuance Costs |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Purchase Price Allocation | At December 31, 2015, the allocations of the purchase prices were as follows (amounts in thousands): CPO MEDCO Nestor (Final) (Final) (Preliminary) Purchase price, net of cash acquired $ 32,225 $ 145,873 $ 39,983 Accounts receivable (2,956 ) (44,815 ) (9,230 ) Inventories (13,051 ) (55,491 ) (10,542 ) Other current assets (269 ) (1,299 ) (338 ) Property, plant and equipment, net (488 ) (4,408 ) (1,251 ) Other assets - (650 ) (752 ) Intangible assets (12,800 ) (40,000 ) (17,700 ) Total assets acquired (29,564 ) (146,663 ) (39,813 ) Accounts payable 16,911 32,383 4,992 Accrued liabilities 2,580 5,542 1,912 Deferred income taxes 3,453 2,167 4,421 Other long-term liabilities 90 52 76 Total liabilities assumed 23,034 40,144 11,401 Goodwill $ 25,695 $ 39,354 $ 11,571 |
Summary of Purchased Identifiable Intangible Assets | The purchased identifiable intangible assets were as follows (amounts in thousands): CPO (Final) MEDCO (Final) Nestor (Preliminary) Total Estimated Life Total Estimated Life Total Estimated Life Customer relationships $ 5,200 3 years $ 37,590 3-15 years $ 16,330 13 years Trademark 7,600 15 years 2,410 1.5-15 years 1,370 2.5-15 years Total $ 12,800 $ 40,000 $ 17,700 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Share-Based Compensation Expense | The following table summarizes the share-based compensation expense (in thousands): Year Ended December 31, 2015 2014 2013 Numerator: Pre-tax expense $ 7,895 $ 8,195 $ 10,808 Tax effect (3,000 ) (3,114 ) (4,108 ) After tax expense $ 4,895 $ 5,081 $ 6,700 Denominator: Denominator for basic shares—Weighted average shares 37,457 38,705 39,650 Denominator for diluted shares—Adjusted weighted average shares and the effect of dilutive securities 37,457 39,130 40,236 Net expense per share: Net expense per share—basic $ 0.13 $ 0.13 $ 0.17 Net expense per share—diluted $ 0.13 $ 0.13 $ 0.17 |
Schedule of Intrinsic Value of Options Outstanding, Exercisable and Exercised | As of December 31, Year ended December 31, Outstanding Exercisable Exercised 2015 $ 1,253 $ 1,253 $ 902 2014 6,092 4,543 537 2013 9,897 6,262 13,676 As of December 31, Year ended December 31, Outstanding Vested 2015 $ 34,981 $ 8,159 2014 45,928 10,976 2013 47,780 12,414 |
Schedule of Valuation Techniques Assumption | The assumptions used for 2014 are shown in the following table. 2014 Weighted average expected term 5.6 Expected volatility 39.12 % Weighted average volatility 39.12 % Weighted average expected dividends 1.24 % Risk-free rate 1.75 % |
Schedule of Stock Options | The following table summarizes the transactions, excluding restricted stock, under the Company’s equity compensation plans for the last three years: Weighted Weighted Weighted Average Average Average Exercise Exercise Exercise 2015 Price 2014 Price 2013 Price Options outstanding—January 1 727,378 $ 33.81 812,160 $ 33.70 1,371,850 $ 24.86 Granted - - 5,538 45.89 585,189 38.71 Exercised (77,918 ) 24.11 (32,610 ) 24.43 (1,065,920 ) 24.69 Cancelled (200,773 ) 38.71 (57,710 ) 38.74 (78,959 ) 38.69 Options outstanding—December 31 448,687 $ 33.31 727,378 $ 33.81 812,160 $ 33.70 Number of options exercisable 195,402 $ 26.11 273,320 $ 25.54 305,930 $ 25.42 |
Schedule of Outstanding and Exercisable Options Granted | The following table summarizes outstanding and exercisable options granted under the Company’s equity compensation plans as of December 31, 2015: Remaining Contractual Exercise Prices Outstanding Life (Years) Exercisable 20.00 - 25.00 103,280 0.6 103,280 25.01 - 30.00 89,876 1.4 89,876 30.01 - 35.00 2,246 1.4 2,246 35.01 - 40.00 247,747 7.3 - 40.01 - 50.00 5,538 8.0 - Total 448,687 4.5 195,402 |
Schedule of Restricted Stock and RSU Grants and Changes | The following table summarizes restricted stock and RSU transactions for the last three years. Weighted Weighted Weighted Average Average Average Grant Date Grant Date Grant Date Restricted Stock and RSUs 2015 Fair Value 2014 Fair Value 2013 Fair Value Nonvested—January 1 1,089,374 $ 31.23 1,041,189 $ 31.24 1,297,906 $ 28.61 Granted 624,789 36.79 429,759 40.52 348,264 38.28 Vested (212,537 ) 33.94 (237,739 ) 41.59 (323,159 ) 37.02 Cancelled (425,626 ) 34.58 (143,835 ) 34.04 (281,822 ) 30.04 Nonvested—December 31 1,076,000 $ 36.13 1,089,374 $ 31.23 1,041,189 $ 31.24 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill are noted in the following table (in thousands): Goodwill, balance as of December 31, 2014 $ 398,042 Impairment (117,094 ) Purchase accounting adjustments 9,427 Acquisition 11,571 Currency translation adjustment (2,591 ) Goodwill, balance as of December 31, 2015 $ 299,355 |
Summary of Intangible Assets of Company by Major Class | The following table summarizes the intangible assets of the Company by major class of intangible assets and the cost, accumulated amortization, net carrying amount, and weighted average life, if applicable (in thousands): December 31, 2015 December 31, 2014 Weighted Weighted Average Average Gross Net Useful Gross Net Useful Carrying Accumulated Carrying Life Carrying Accumulated Carrying Life Amount Amortization Amount (years) Amount Amortization Amount (years) Intangible assets subject to amortization Customer relationships and other intangibles $ 137,938 $ (51,357 ) $ 86,581 16 $ 125,761 $ (41,123 ) $ 84,638 16 Non-compete agreements 4,644 (4,260 ) 384 4 4,672 (2,364 ) 2,308 4 Trademarks 13,688 (4,240 ) 9,448 14 14,428 (1,716 ) 12,712 13 Total $ 156,270 $ (59,857 ) $ 96,413 $ 144,861 $ (45,203 ) $ 99,658 Intangible assets not subject to amortization Trademarks - - - n/a 12,300 - 12,300 n/a Total $ 156,270 $ (59,857 ) $ 96,413 $ 157,161 $ (45,203 ) $ 111,958 |
Summary of Amortization Expense Expected to be Incurred Over Next Five Years on Intangible Assets | The following table summarizes the amortization expense expected to be incurred over the next five years on intangible assets (in thousands): Year Amounts 2016 $ 12,281 2017 10,811 2018 8,081 2019 6,963 2020 6,960 |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Change in Accumulated Other Comprehensive Income (Loss) (AOCI) by Component, Net of Tax | The change in Accumulated Other Comprehensive Income (Loss) (“AOCI”) by component, net of tax, for the year ended December 31, 2015 is as follows: (amounts in thousands) Foreign Currency Translation Cash Flow Hedges Defined Benefit Pension Plans Total AOCI, balance as of December 31, 2014 $ (11,923 ) $ 274 $ (51,142 ) $ (62,791 ) Other comprehensive (loss) income before reclassifications (9,075 ) (934 ) (500 ) (10,509 ) Amounts reclassified from AOCI 11,132 806 3,771 15,709 Net other comprehensive (loss) income 2,057 (128 ) 3,271 5,200 AOCI, balance as of December 31, 2015 $ (9,866 ) $ 146 $ (47,871 ) $ (57,591 ) |
Amounts Reclassified Out of AOCI into Income Statement | The following table details the amounts reclassified out of AOCI into the income statement during the twelve-month period ending December 31, 2015: Amount Reclassified From AOCI For the Twelve Months Ended December 31, Affected Line Item In The Statement Details About AOCI Components 2015 Where Net Income is Presented Foreign currency translation adjustments Disposition of Azerty de Mexico $ 11,132 Warehousing, marketing and administrative expenses Realized and unrealized gains (losses) on cash flow hedges Gain (loss) on interest rate swap, before tax $ 1,309 Interest expense, net Gain on foreign exchange hedges, before tax (9 ) Cost of goods sold (494 ) Tax provision $ 806 Net of tax Defined benefit pension plan items Amortization of prior service cost and unrecognized loss $ 6,158 Warehousing, marketing and administrative expenses (2,387 ) Tax provision 3,771 Net of tax Total reclassifications for the period, net of tax $ 15,709 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data): Years Ended December 31, 2015 2014 2013 Numerator: Net income (loss) $ (44,342 ) $ 112,115 $ 122,053 Denominator: Denominator for basic earnings per share - weighted average shares 37,457 38,705 39,650 Effect of dilutive securities: Employee stock options and restricted units - 425 586 Denominator for diluted earnings per share - Adjusted weighted average shares and the effect of dilutive securities 37,457 39,130 40,236 Net income (loss) per share: Net income (loss) per share - basic $ (1.18 ) $ 2.90 $ 3.08 Net income (loss) per share - diluted (1) $ (1.18 ) $ 2.87 $ 3.03 (1) Diluted earnings per share for the fourth quarter of 2015 under GAAP reflect an adjustment to the basic earnings per share due to net los s. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales by Product Category | The following table shows net sales by product category for 2015, 2014 and 2013 (in thousands): Years Ended December 31 2015 (1) 2014 (1) 2013 (1) Janitorial and breakroom supplies $ 1,451,829 $ 1,435,933 $ 1,336,182 Technology products 1,365,996 1,450,777 1,462,756 Traditional office products 1,205,845 1,329,028 1,314,456 Industrial supplies 869,019 638,781 517,810 Office furniture 317,494 311,282 311,403 Freight revenue 125,731 121,933 105,567 Other 27,132 39,471 37,119 Total net sales $ 5,363,046 $ 5,327,205 $ 5,085,293 (1) Certain prior period amounts have been reclassified to conform to the current presentation. Such changes include reclassification of specific products to different product categories and did not impact the Consolidated Statements of Operations. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Components | Debt consisted of the following amounts (in millions): As of As of December 31, 2015 December 31, 2014 2013 Credit Agreement $ 368.4 $ 363.0 2013 Note Purchase Agreement 150.0 150.0 Receivables Securitization Program 200.0 200.0 OKI Mortgage & Capital Lease 0.1 0.9 Transaction Costs (2.2 ) (3.1 ) Total $ 716.3 $ 710.8 |
Schedule of Debt Maturities | Debt maturities as of December 31, 2015, were as follows (in millions): Year Amount 2018 $ 568.4 2021 150.0 Total $ 718.4 |
Leases, Contractual Obligatio42
Leases, Contractual Obligations and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments under Operating Leases | The Company has entered into non-cancelable long-term leases for certain property and equipment. Future minimum lease payments under operating leases in effect as of December 31, 2015 having initial or remaining non-cancelable lease terms in excess of one year are as follows (in thousands): Operating Year Leases 2016 $ 48,770 2017 45,665 2018 36,167 2019 32,271 2020 23,657 Thereafter 61,705 Total required lease payments $ 248,235 |
Pension Plans and Defined Con43
Pension Plans and Defined Contribution Plan (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Reconciliation of Changes in Projected Benefit Obligation | The following table sets forth the plans’ changes in Projected Benefit Obligation for the years ended December 31, 2015 and 2014 (in thousands): 2015 2014 Benefit obligation at beginning of year $ 224,086 $ 183,069 Service cost—benefit earned during the period 1,495 1,069 Interest cost on projected benefit obligation 8,997 8,960 Union plan amendments - 1,736 Actuarial (gain) loss (16,846 ) 35,054 Benefits paid (6,343 ) (5,802 ) Benefit obligation at end of year $ 211,389 $ 224,086 |
Schedule of Change in Plan Asset | The following table sets forth the change in the plans’ assets for the years ended December 31, 2015 and 2014 (in thousands): 2015 2014 Fair value of plan assets at beginning of year $ 173,771 $ 162,250 Actual return on plan assets (6,451 ) 15,323 Company contributions 2,000 2,000 Benefits paid (6,343 ) (5,802 ) Fair value of plan assets at end of year $ 162,977 $ 173,771 |
Schedule of Pension Plan Investment Allocations | The Company’s pension plan investment allocations, as a percentage of the fair value of total plan assets, as of December 31, 2015 and 2014, by asset category are as follows: Asset Category 2015 2014 Cash 0.4 % 1.1 % Equity securities 37.8 % 29.6 % Fixed income 40.5 % 45.4 % Real assets 10.8 % 13.6 % Hedge funds 10.5 % 10.3 % Total 100.0 % 100.0 % |
Schedule of Fair Values of Pension Plan Assets | The fair values of the Company’s pension plan assets at December 31, 2015 and 2014 by asset category are as follows: Fair Value Measurements at December 31, 2015 (in thousands) Quoted Prices In Significant Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Asset Category Total (Level 1) (Level 2) (Level 3) Cash $ 655 $ 655 $ - $ - Equity Securities U.S. Large Cap (a) 23,072 $ 23,072 - - International (b) 18,211 18,211 - - Emerging Markets (c) 13,127 13,127 - - U.S. Small Cap (d) 7,256 7,256 - - Fixed Income U.S. Fixed Income (e) 59,517 59,517 - - U.S. Inflation Protected Bonds (f) 1,236 1,236 High Yield Bonds (g) 2,295 2,295 International Fixed Income (h) 2,900 2,900 Real Assets Domestic Real Estate (i) 10,464 10,464 - - Commodities (j) 7,089 7,089 - - Hedge Funds Hedge Funds (k) 17,155 - 17,155 - Total $ 162,977 $ 145,822 $ 17,155 $ - (a) A daily valued mutual fund investment. The fund invests in publically traded, large capitalization companies domiciled predominantly in the US. (b) A daily valued mutual fund investment. This fund invests in common stocks of companies domiciled in developed market countries outside of the U.S. (c) A daily valued mutual fund investment. The fund invests in publically traded companies domiciled in emerging market countries. (d) Three daily mutual fund investments with different investment styles (one core, one value, one growth) that invest in publicly traded small capitalization companies. The majority of holdings are domiciled in the U.S. though the funds may hold international stocks. (e) Principally consists of a separately managed fixed income portfolio utilized to match the duration of plan liabilities. This liability-driven investment portfolio is comprised of Treasury securities including STRIPS and zero coupon bonds, as well as high quality corporate bonds. Also includes a daily valued mutual fund that invests in publically traded U.S. government, asset-backed, mortgage-backed and corporate fixed-income securities. (f) A daily valued mutual fund investment. The fund invests in publically traded bonds backed by the full faith and credit of the federal government and whose principal is adjusted quarterly based on inflation. (g) A daily valued mutual fund investment. The fund invests in publically traded, higher-quality (top-tier BB and B rated) corporate high yield bonds. (h) A daily valued mutual fund investment. The fund invests in publically traded bonds of governments, agencies and companies domiciled in countries outside of the U.S. (i) A daily valued mutual fund investment. The fund invests in publically traded Real Estate Investment Trusts. This is an index mutual fund that tracks the Morgan Stanley REIT Index. The fund normally invests at least 98% of assets that are included in the Morgan Stanley REIT Index. (j) A daily valued mutual fund investment. This fund combines a commodities position, typically through swap agreements, with a portfolio of inflation indexed bonds and other fixed income securities. The commodities position is constructed to track the performance of the Bloomberg Commodity Index. (k) Two separately managed funds of hedge funds. These funds seek attractive risk-adjusted returns through investments in a well-diversified group of managers that employ a variety of unique investment strategies. They target low volatility and low correlation to traditional asset classes. These funds may allocate their assets among a select group of non-traditional portfolio managers that invest or trade in a wide range of securities and other instruments. Fair Value Measurements at December 31, 2014 (in thousands) Quoted Prices In Significant Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Asset Category Total (Level 1) (Level 2) (Level 3) Cash $ 1,831 $ 1,831 $ - $ - Equity Securities U.S. Large Cap (a) 18,612 18,612 - - International (b) 16,791 16,791 - - Emerging Markets (c) 9,653 9,653 - - U.S. Small Value Fund (d) 5,274 5,274 - - U.S. Small Growth Fund (e) 1,123 1,123 - - Fixed Income U.S. Fixed Income (f) 78,886 78,886 - - Real Assets Domestic Real Estate (g) 13,870 13,870 - - Commodities (h) 9,789 9,789 - - Hedge Funds Hedge Funds (i) 17,941 - 17,941 - Total $ 173,770 $ 155,829 $ 17,941 $ - (a) A separately managed, diversified portfolio consisting of publically traded large cap stocks. The portfolio is predominately comprised of U.S. companies but may also hold international company stock. (b) A daily valued mutual fund investment. The fund invests in publically traded companies domiciled outside the U.S. and includes companies located in emerging market countries. (c) A daily valued mutual fund investment. The fund invests in publically traded companies domiciled in emerging market countries. (d) A daily valued mutual fund investment. The fund invests in publically traded, small capitalization companies that are considered value in style. The majority of holdings are domiciled in the U.S. though the fund may hold international stocks. (e) A daily valued mutual fund investment. The fund invests in publically traded, small capitalization companies that are considered growth in style. The majority of holdings are domiciled in the U.S. though the fund may hold international stocks. (f) A separately managed fixed income portfolio utilized to match the duration of the Plan’s liabilities. This liability driven investment portfolio is comprised of Treasury securities including STRIPS and zero coupon bonds as well as high quality corporate bonds. (g) A daily valued mutual fund investment. The fund invests in publically traded Real Estate Investment Trusts. This is an index mutual fund that tracks the Morgan Stanley REIT Index. The fund normally invests at least 98% of assets that are included in the Morgan Stanley REIT Index. (h) A daily valued mutual fund investment. This fund combines a commodities position, typically through swap agreements, with a portfolio of inflation indexed bonds and other fixed income securities. The commodities position is constructed to track the performance of the Dow Jones UBS Commodity Index. (i) A separately managed fund of hedge funds. This fund seeks attractive risk-adjusted returns through investments in a well-diversified group of managers that employ a variety of unique investment strategies. It targets low volatility and low correlation to traditional asset classes. This fund may allocate its assets among a select group of non-traditional portfolio managers that invest or trade in a wide range of securities and other instruments, including, but not limited to: equities and fixed income securities, currencies, commodities, futures contracts, options and other derivative instruments. This fund was sold prior to December 31, 2014 but the transaction did not settle until January 2015. |
Schedule of Plan Funded Status | The following table sets forth the plans’ funded status as of December 31, 2015 and 2014 (in thousands): 2015 2014 Funded status of the plan $ (48,412 ) $ (50,316 ) Unrecognized prior service cost 2,869 3,166 Unrecognized net actuarial loss 74,461 79,502 Net amount recognized $ 28,918 $ 32,352 |
Schedule of Amounts Recognized in Consolidated Balance Sheets | Amounts Recognized in Consolidated Balance Sheets 2015 2014 Accrued benefit liability $ (48,412 ) $ (50,316 ) Accumulated other comprehensive income 77,330 82,668 Net amount recognized $ 28,918 $ 32,352 |
Schedule of Components of Net Periodic Pension Cost | Net periodic pension cost for the years ended December 31, 2015, 2014 and 2013 for pension and supplemental benefit plans includes the following components (in thousands): Pension Benefits For the Years Ended December 31, 2015 2014 2013 Service cost - benefit earned during the period $ 1,495 $ 1,069 $ 1,479 Interest cost on projected benefit obligation 8,997 8,960 8,379 Expected return on plan assets (11,217 ) (10,286 ) (11,338 ) Amortization of prior service cost 296 182 192 Amortization of actuarial loss 5,862 3,674 5,741 Net periodic pension cost $ 5,433 $ 3,599 $ 4,453 |
Schedule of Actuarial Assumptions for Discount Rates, Expected Long-Term Rates of Return on Plan Assets | The following tables summarize the Company’s actuarial assumptions for discount rates, expected long-term rates of return on plan assets: 2015 2014 2013 Pension plan assumptions Assumed discount rate, general 4.52% 4.09% 4.95% Assumed discount rate, union 4.55% 4.16% 5.10% Expected long-term rate of return on plan assets, general 6.50% 6.30% 7.30% Expected long-term rate of return on plan assets, union 6.30% 7.30% 7.75% |
Schedule of Estimated Future Benefit Payments | The estimated future benefit payments under the Company’s pension plans, excluding the impact of future lump sum offerings, are as follows (in thousands): Amounts 2016 $ 8,814 2017 8,217 2018 8,072 2019 9,089 2020 10,096 2021-2025 56,163 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision for income taxes consisted of the following (in thousands): For the Years Ended December 31, 2015 2014 2013 Currently Payable Federal $ 67,702 $ 72,513 $ 69,519 State 8,387 8,334 8,027 Foreign 1,614 805 715 Total currently payable 77,703 81,652 78,261 Deferred, net Federal (20,929 ) (9,510 ) (4,491 ) State (1,778 ) (1,085 ) (180 ) Foreign (455 ) (284 ) (83 ) Total deferred, net (23,162 ) (10,879 ) (4,754 ) Provision for income taxes $ 54,541 $ 70,773 $ 73,507 (1) Certain prior period amounts have been reclassified to conform to the current presentation. Such reclassifications include changes between categories. These changes did not impact the Consolidated Statements of Operations. |
Schedule of Effective Income Tax Rates Varied from Statutory Federal Income Tax Rate | The Company’s effective income tax rates for the years ended December 31, 2015, 2014 and 2013 varied from the statutory federal income tax rate as set forth in the following table (in thousands): Years Ended December 31, 2015 2014 2013 Amount % of Pre-tax Income Amount % of Pre-tax Income Amount % of Pre-tax Income Tax provision based on the federal statutory rate $ 3,569 35.0 % $ 64,011 35.0 % $ 68,446 35.0 % State and local income taxes—net of federal income tax benefit 374 3.6 % 4,362 2.4 % 5,141 2.6 % Impairment of goodwill 47,468 465.5 % (4 ) 0.0 % - 0.0 % Valuation allowances 1,217 11.9 % 3,027 1.7 % - 0.0 % Non-deductible and other 1,913 18.8 % (623 ) -0.4 % (80 ) 0.0 % Provision for income taxes $ 54,541 534.8 % $ 70,773 38.7 % $ 73,507 37.6 % (1) Certain prior period amounts have been reclassified to conform to the current presentation. Such reclassifications include changes between categories. These changes did not impact the Consolidated Statements of Operations. |
Schedule of Deferred Tax Assets and Liabilities | The sources of these differences and the related tax effects were as follows (in thousands): As of December 31, 2015 2014 Assets Liabilities Assets Liabilities Accrued expenses $ 14,287 $ - $ 12,299 $ - Allowance for doubtful accounts 10,355 - 7,218 - Depreciation and amortization - 24,362 - 26,816 Intangibles arising from acquisitions - 25,034 - 22,184 Inventory reserves and adjustments - 16,086 - 20,164 Pension and post-retirement 14,889 - 18,797 - Share-based compensation 5,721 - 5,653 - Income tax credits, capital losses, and net operating losses 14,462 - 12,550 - Restructuring costs 5,442 - 273 - Other 1,026 - 842 - Total Deferred 66,182 65,482 57,632 69,164 Valuation Allowance (9,189 ) - (7,397 ) - Net Deferred $ 56,993 $ 65,482 $ 50,235 $ 69,164 (1) Certain prior period amounts have been reclassified to conform to the current presentation. Such reclassifications include changes between categories. These changes did not impact the Consolidated Statements of Operations. |
Schedule of Unrecognized Tax Benefits | The following table shows the changes in gross unrecognized tax benefits, for the years ended December 31, 2015, 2014 and 2013 (in thousands): 2015 2014 2013 Beginning Balance, January 1 $ 3,205 $ 3,108 $ 3,134 Additions based on tax positions taken during a prior period 1 123 169 Reductions based on tax positions taken during a prior period (14 ) (11 ) (5 ) Additions based on tax positions taken during the current period 425 382 389 Reductions related to settlement of tax matters (46 ) (70 ) (184 ) Reductions related to lapses of applicable statutes of limitation (221 ) (327 ) (395 ) Ending Balance, December 31 $ 3,350 $ 3,205 $ 3,108 |
Supplemental Cash Flow Inform45
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Disclosures of Cash Flow Information | In addition to the information provided in the Consolidated Statements of Cash Flows, the following are supplemental disclosures of cash flow information for the years ended December 31, 2015, 2014 and 2013 (in thousands): Years Ended December 31 2015 2014 2013 Cash Paid During the Year For: Interest 19,275 12,822 12,385 Income taxes, net 76,330 76,205 79,526 |
Fair Value of Financial Instr46
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Estimated Fair Value of Financial Instruments | The estimated fair values of the Company’s financial instruments are as follows (in thousands): As of December 31, 2015 2014 Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 29,983 $ 29,983 $ 20,812 $ 20,812 Accounts receivable, net 716,537 716,537 702,527 702,527 Foreign exchange hedge asset 91 91 - - Convertible note receivable - - 6,775 6,775 Non-convertible note receivable - - 2,800 2,800 Accounts payable 531,949 531,949 485,241 485,241 Debt 716,315 716,315 710,768 710,768 Long-term interest rate swap liability 469 469 253 253 |
Other Assets and Liabilities (T
Other Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Assets And Liabilities [Abstract] | |
Schedule of Other Assets and Liabilities | Other assets and liabilities as of December 31, 2015 and 2014 were as follows (in thousands): As of December 31, 2015 2014 Other Long-Term Assets: Investment in deferred compensation $ 5,440 $ 4,984 Long-term prepaid assets 26,291 19,055 Long-term convertible and non-convertible notes receivable - 9,575 Long-term income tax asset 3,412 2,881 Other 2,205 2,174 Total other long-term assets $ 37,348 $ 38,669 Other Long-Term Liabilities: Accrued pension obligation $ 48,412 $ 50,316 Deferred rent 18,948 16,241 Deferred directors compensation 5,453 5,016 Long-term swap liability 469 253 Long-term income tax liability 3,832 3,639 Long-term merger expenses 12,965 17,229 Long-term workers compensation liability 8,039 7,155 Other 3,370 4,545 Total other long-term liabilities $ 101,488 $ 104,394 |
Derivative Financial Instrume48
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Effect of Derivative Instruments on Statements of Operations and Comprehensive Income | The following table depicts the effect of these derivative instruments on the statements of operations and comprehensive income for the years ended December 31, 2015 and 2014. Derivatives in ASC 815 Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) 2015 2014 2015 2014 Interest Rate Swap $ 1,177 $ 105 Interest expense, net $ 1,309 $ 625 Foreign Exchange Hedges 147 - Cost of goods sold (9 ) - |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Measured at Fair Value | Fair Value Measurements as of December 31, 2015 Quoted Market Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs Total Level 1 Level 2 Level 3 Assets Foreign exchange hedge asset $ 91 $ - $ 91 $ - Liabilities Interest rate swap liability 469 - 469 - Fair Value Measurements as of December 31, 2014 Quoted Market Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs Total Level 1 Level 2 Level 3 Assets Convertible note receivable $ 6,775 $ - $ - $ 6,775 Non-convertible note receivable 2,800 - - 2,800 Liabilities Interest rate swap liability 253 - 253 - Total $ 9,828 $ - $ 253 $ 9,575 |
Quarterly Financial Data-Unau50
Quarterly Financial Data-Unaudited (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | First Quarter Second Quarter Third Quarter Fourth Quarter Total (1) (dollars in thousands, except per share data) Year Ended December 31, 2015: Net sales $ 1,332,375 $ 1,341,799 $ 1,391,545 $ 1,297,327 $ 5,363,046 Gross profit 200,395 210,119 225,143 200,838 836,495 Net income (loss) (2) (6,007 ) 29,834 27,667 (95,836 ) (44,342 ) Net income (loss) per share—basic $ (0.16 ) $ 0.79 $ 0.74 $ (2.61 ) $ (1.18 ) Net income (loss) per share—diluted (3) $ (0.16 ) $ 0.78 $ 0.74 $ (2.61 ) $ (1.18 ) Year Ended December 31, 2014: Net sales $ 1,254,139 $ 1,320,037 $ 1,419,947 $ 1,333,082 $ 5,327,205 Gross profit 180,878 195,552 216,701 209,398 802,529 Net income (4) 19,292 30,522 40,231 22,070 112,115 Net income per share—basic $ 0.49 $ 0.79 $ 1.05 $ 0.57 $ 2.90 Net income per share—diluted $ 0.49 $ 0.78 $ 1.03 $ 0.57 $ 2.87 (1) As a result of changes in the number of common and common equivalent shares during the year, the sum of quarterly earnings per share will not necessarily equal earnings per share for the total year. (2) 2015 results were impacted by: First Quarter Second Quarter Third Quarter Fourth Quarter Total (dollars in millions) ORS Industrial inventory obsolescence reserve and impairment of goodwill and intangible assets $ - $ - $ - $ 120.7 $ 120.7 Workforce reduction and facility closure charge 6.4 (0.1 ) 0.2 12.1 18.6 Intangible asset impairment charge and accelerated amortization related to rebranding 10.5 0.5 0.5 0.5 12.0 Notes receivable impairment - - 10.7 - 10.7 Loss on disposition of business 13.6 1.4 2.1 - 17.0 (3) Diluted earnings per share for the fourth quarter of 2015 under GAAP reflect an adjustment to the basic earnings per share due to the net loss. (4) 2014 results were impacted by a loss on disposition of MBS Dev totaling $8.2 million in the fourth quarter. This loss was not fully recognizable for tax. |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2015USD ($)Product | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)ProductLocationCustomer | Dec. 31, 2014USD ($) | [1] | Dec. 31, 2013USD ($) | [1] | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||||||||||||
Net sales | $ | $ 1,297,327 | $ 1,391,545 | $ 1,341,799 | $ 1,332,375 | $ 1,333,082 | $ 1,419,947 | $ 1,320,037 | $ 1,254,139 | $ 5,363,046 | $ 5,327,205 | $ 5,085,293 | ||
Number of items | Product | 180,000 | 180,000 | |||||||||||
Number of distribution centers | Location | 74 | ||||||||||||
Number of reseller customer | Customer | 30,000 | ||||||||||||
[1] | Revised in the third quarter of 2015 for the impact of the changes in accounting principle related to inventory accounting and debt transaction costs. |
Summary of Significant Accoun52
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($)Plans | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Accrued customer rebates included in Accrued liabilities | $ 63,600 | $ 63,200 | ||||
Number of compensation plans | Plans | 2 | |||||
Outstanding checks | $ 46,000 | 62,100 | ||||
Receivables related to supplier allowances included Accounts receivable | $ 111,000 | $ 124,400 | ||||
Percentage inventory valued under LIFO | 98.40% | 97.00% | ||||
Higher inventory if FIFO applied entirely | $ 147,800 | $ 139,500 | ||||
Increase (decrease) in cost of goods sold due to LIFO accounting method | $ (4,200) | 8,300 | 17,400 | $ 6,200 | ||
Effect of LIFO inventory liquidation on income | 1,100 | 900 | 300 | |||
LIFO expense related to inflation increase in cost of sales | 7,800 | 18,300 | 6,500 | |||
Increase (decrease) in cost of sales due to LIFO accounting method | $ 2,300 | 6,700 | 17,400 | 6,200 | ||
Warehousing and administrative expenses charged to inventory | 46,100 | 44,700 | 43,000 | |||
Pension expense | 5,400 | 3,600 | 4,500 | |||
Loss from foreign currency translation | 9,075 | $ 5,262 | [1] | $ 901 | [1] | |
Mexican Subsidiary [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Loss from foreign currency translation | $ 11,100 | |||||
Minimum [Member] | Fixtures And Equipment [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful life | 2 years | |||||
Maximum [Member] | Fixtures And Equipment [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful life | 10 years | |||||
Maximum [Member] | Building [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful life | 40 years | |||||
Maximum [Member] | Capitalized Software [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful life | 10 years | |||||
Nestor Sales LLC [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Higher inventory if FIFO applied entirely | $ 1,600 | |||||
[1] | Revised in the third quarter of 2015 for the impact of the changes in accounting principle related to inventory accounting and debt transaction costs. |
Summary of Significant Accoun53
Summary of Significant Accounting Policies - Schedule of Capitalized Software Included in Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||
Capitalized software development costs | $ 98,873 | $ 91,624 | [1] |
Accumulated amortization | (73,723) | (65,951) | |
Net capitalized software development costs | $ 25,150 | $ 25,673 | |
[1] | Revised in the third quarter of 2015 for the impact of the changes in accounting principle related to inventory accounting and debt transaction costs. |
Changes in Accounting Principle
Changes in Accounting Principles - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | ||||
Increase (decrease) in cost of goods sold due to LIFO accounting method | $ (4.2) | $ 8.3 | $ 17.4 | $ 6.2 |
Increase decrease in the net income due to LIFO accounting method | $ 2.3 | $ 6.7 | $ 17.4 | $ 6.2 |
Increase decrease in the net income due to LIFO accounting method per diluted share | $ 0.06 |
Changes in Accounting Princip55
Changes in Accounting Principles - Summary of adjustments made to the consolidated financial statements (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||||
Consolidated Statement of Income | ||||||||||||||||||||
Cost of goods sold | $ 4,526,551 | $ 4,524,676 | [1] | $ 4,297,952 | [1] | |||||||||||||||
Gross profit | $ 200,838 | $ 225,143 | $ 210,119 | $ 200,395 | $ 209,398 | $ 216,701 | $ 195,552 | $ 180,878 | 836,495 | 802,529 | [1] | 787,341 | [1] | |||||||
Warehousing, marketing and administrative expenses | 675,913 | 595,673 | [1] | 578,958 | [1] | |||||||||||||||
Income before income taxes | 10,199 | 182,888 | [1] | 195,560 | [1] | |||||||||||||||
Income tax expense | 54,541 | 70,773 | [1] | 73,507 | [1] | |||||||||||||||
Net income (loss) | $ (95,836) | $ 27,667 | $ 29,834 | $ (6,007) | $ 22,070 | $ 40,231 | $ 30,522 | $ 19,292 | $ (44,342) | $ 112,115 | [1] | $ 122,053 | [1] | |||||||
Net income per share | ||||||||||||||||||||
Basic | $ (2.61) | $ 0.74 | $ 0.79 | $ (0.16) | $ 0.57 | $ 1.05 | $ 0.79 | $ 0.49 | $ (1.18) | $ 2.90 | [1] | $ 3.08 | [1] | |||||||
Diluted | $ (2.61) | $ 0.74 | $ 0.78 | $ (0.16) | $ 0.57 | $ 1.03 | $ 0.78 | $ 0.49 | $ (1.18) | $ 2.87 | [1] | $ 3.03 | [1] | |||||||
Consolidated Statement of Comprehensive Income | ||||||||||||||||||||
Net income (loss) | $ (95,836) | $ 27,667 | $ 29,834 | $ (6,007) | $ 22,070 | $ 40,231 | $ 30,522 | $ 19,292 | $ (44,342) | $ 112,115 | [1] | $ 122,053 | [1] | |||||||
Comprehensive income (loss) | (39,142) | 89,212 | [1] | 135,930 | [1] | |||||||||||||||
Consolidated Statement of Financial Position | ||||||||||||||||||||
Inventories | $ 922,162 | $ 906,430 | [1] | $ 821,511 | ||||||||||||||||
Other current assets | 27,310 | 30,713 | [1] | 29,255 | ||||||||||||||||
Other long-term assets | 37,348 | 38,669 | [1] | 22,185 | ||||||||||||||||
Accrued liabilities | 177,472 | 185,535 | [1] | 188,115 | ||||||||||||||||
Long-term debt | 716,264 | 709,917 | [1] | 529,933 | ||||||||||||||||
Retained earnings | 1,463,821 | 1,529,224 | [1] | 1,529,224 | [1] | 1,438,870 | 1,463,821 | 1,529,224 | [1] | 1,438,870 | $ 1,463,821 | 1,529,224 | [1] | 1,438,870 | ||||||
Consolidated Statement of Cash Flows | ||||||||||||||||||||
Net income (loss) | (95,836) | $ 27,667 | $ 29,834 | (6,007) | 22,070 | $ 40,231 | $ 30,522 | 19,292 | (44,342) | 112,115 | [1] | 122,053 | [1] | |||||||
Deferred income taxes | (23,162) | (10,879) | [1] | (4,754) | [1] | |||||||||||||||
Inventories | (12,467) | (18,724) | [1] | (64,677) | [1] | |||||||||||||||
Other assets | (5,313) | (2,898) | [1] | (4,224) | [1] | |||||||||||||||
Accrued liabilities | 1,077 | 1,276 | [1] | (3,648) | [1] | |||||||||||||||
Cash provided by operating activities | 162,734 | 77,133 | [1] | 74,737 | [1] | |||||||||||||||
Consolidated Statement of Shareholders’ Equity | ||||||||||||||||||||
Retained earnings at beginning of year | 1,529,224 | [1] | 1,438,870 | 1,529,224 | [1] | 1,438,870 | 1,339,186 | |||||||||||||
Retained earnings at end of year | $ 1,463,821 | 1,529,224 | [1] | 1,463,821 | 1,529,224 | [1] | 1,438,870 | |||||||||||||
Previous Method [Member] | ||||||||||||||||||||
Consolidated Statement of Income | ||||||||||||||||||||
Cost of goods sold | 4,516,704 | 4,295,715 | ||||||||||||||||||
Gross profit | 810,501 | 789,578 | ||||||||||||||||||
Warehousing, marketing and administrative expenses | 592,050 | 579,245 | ||||||||||||||||||
Income before income taxes | 194,483 | 197,510 | ||||||||||||||||||
Income tax expense | 75,285 | 74,340 | ||||||||||||||||||
Net income (loss) | $ 119,198 | $ 123,170 | ||||||||||||||||||
Net income per share | ||||||||||||||||||||
Basic | $ 3.08 | $ 3.11 | ||||||||||||||||||
Diluted | $ 3.05 | $ 3.06 | ||||||||||||||||||
Consolidated Statement of Comprehensive Income | ||||||||||||||||||||
Net income (loss) | $ 119,198 | $ 123,170 | ||||||||||||||||||
Comprehensive income (loss) | 96,295 | 137,047 | ||||||||||||||||||
Consolidated Statement of Financial Position | ||||||||||||||||||||
Inventories | 926,809 | 830,295 | ||||||||||||||||||
Other current assets | 30,042 | 29,255 | ||||||||||||||||||
Other long-term assets | 41,810 | 25,576 | ||||||||||||||||||
Accrued liabilities | 192,792 | 191,531 | ||||||||||||||||||
Long-term debt | 713,058 | 533,324 | ||||||||||||||||||
Retained earnings | 1,541,675 | 1,541,675 | 1,444,238 | 1,541,675 | 1,541,675 | 1,444,238 | 1,541,675 | 1,444,238 | ||||||||||||
Consolidated Statement of Cash Flows | ||||||||||||||||||||
Net income (loss) | 119,198 | 123,170 | ||||||||||||||||||
Deferred income taxes | (6,367) | (3,921) | ||||||||||||||||||
Inventories | (30,319) | (66,627) | ||||||||||||||||||
Cash provided by operating activities | 77,133 | 74,737 | ||||||||||||||||||
Consolidated Statement of Shareholders’ Equity | ||||||||||||||||||||
Retained earnings at beginning of year | 1,541,675 | 1,444,238 | 1,541,675 | 1,444,238 | 1,343,437 | |||||||||||||||
Retained earnings at end of year | 1,541,675 | 1,541,675 | 1,444,238 | |||||||||||||||||
Effect Of Change [Member] | ||||||||||||||||||||
Consolidated Statement of Income | ||||||||||||||||||||
Cost of goods sold | 7,972 | 2,237 | ||||||||||||||||||
Gross profit | (7,972) | (2,237) | ||||||||||||||||||
Warehousing, marketing and administrative expenses | 3,623 | (287) | ||||||||||||||||||
Income before income taxes | (11,595) | (1,950) | ||||||||||||||||||
Income tax expense | (4,512) | (833) | ||||||||||||||||||
Net income (loss) | $ (7,083) | $ (1,117) | ||||||||||||||||||
Net income per share | ||||||||||||||||||||
Basic | $ (0.18) | $ (0.03) | ||||||||||||||||||
Diluted | $ (0.18) | $ (0.03) | ||||||||||||||||||
Consolidated Statement of Comprehensive Income | ||||||||||||||||||||
Net income (loss) | $ (7,083) | $ (1,117) | ||||||||||||||||||
Comprehensive income (loss) | (7,083) | (1,117) | ||||||||||||||||||
Consolidated Statement of Financial Position | ||||||||||||||||||||
Inventories | (20,379) | (8,784) | ||||||||||||||||||
Other current assets | 671 | |||||||||||||||||||
Other long-term assets | (3,141) | (3,391) | ||||||||||||||||||
Accrued liabilities | (7,257) | (3,416) | ||||||||||||||||||
Long-term debt | (3,141) | (3,391) | ||||||||||||||||||
Retained earnings | (12,451) | (12,451) | (5,368) | (12,451) | (12,451) | (5,368) | $ (12,451) | $ (5,368) | ||||||||||||
Consolidated Statement of Cash Flows | ||||||||||||||||||||
Net income (loss) | (7,083) | (1,117) | ||||||||||||||||||
Deferred income taxes | (4,512) | (833) | ||||||||||||||||||
Inventories | 11,595 | 1,950 | ||||||||||||||||||
Consolidated Statement of Shareholders’ Equity | ||||||||||||||||||||
Retained earnings at beginning of year | $ (12,451) | $ (5,368) | $ (12,451) | (5,368) | (4,251) | |||||||||||||||
Retained earnings at end of year | $ (12,451) | $ (12,451) | $ (5,368) | |||||||||||||||||
[1] | Revised in the third quarter of 2015 for the impact of the changes in accounting principle related to inventory accounting and debt transaction costs. |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Additional Information (Detail) - USD ($) | Sep. 18, 2015 | Jul. 31, 2015 | Dec. 16, 2014 | Oct. 31, 2014 | Oct. 01, 2014 | May. 30, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 16, 2016 | ||
Business Acquisition [Line Items] | ||||||||||||||||||||
Net sales | $ 1,297,327,000 | $ 1,391,545,000 | $ 1,341,799,000 | $ 1,332,375,000 | $ 1,333,082,000 | $ 1,419,947,000 | $ 1,320,037,000 | $ 1,254,139,000 | $ 5,363,046,000 | $ 5,327,205,000 | [1] | $ 5,085,293,000 | [1] | |||||||
Goodwill impairment | $ 9,000,000 | 117,094,000 | ||||||||||||||||||
Impairment charge | 155,603,000 | 1,183,000 | [1] | |||||||||||||||||
Loss on disposition of business | 1,461,000 | (800,000) | [1] | |||||||||||||||||
Azerty de Mexico [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Percentage of stock-sale of subsidiary | 100.00% | |||||||||||||||||||
Combination of cash and Seller's note | $ 8,700,000 | |||||||||||||||||||
Disposition of subsidiary, seller's note maturity term | 180 days | |||||||||||||||||||
Disposition of subsidiary, seller's notes receivable | 700,000 | 700,000 | ||||||||||||||||||
Goodwill impairment | 3,300,000 | |||||||||||||||||||
Cumulative foreign currency translation adjustment, of the disposal group | 10,100,000 | |||||||||||||||||||
Pre-tax impairment loss of the disposal group | 10,100,000 | |||||||||||||||||||
Loss on disposition of business | 1,500,000 | |||||||||||||||||||
Pre-tax income (loss) from subsidiary | (5,200,000) | (300,000) | ||||||||||||||||||
Azerty de Mexico [Member] | Warehousing, Marketing and Administrative Expenses [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Impairment charge | 10,100,000 | |||||||||||||||||||
Additional cost incurred during transaction | 3,600,000 | |||||||||||||||||||
MBS Dev, Inc [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Goodwill impairment | $ 9,000,000 | |||||||||||||||||||
Loss on disposition of business | 8,200,000 | |||||||||||||||||||
Gain on disposal | $ 800,000 | |||||||||||||||||||
Subsequent Event [Member] | Staples, Inc [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Agreement to purchase from staples | $ 550,000,000 | |||||||||||||||||||
Payment to be made under agreement | $ 22,500,000 | |||||||||||||||||||
CPO Commerce, Inc [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Business acquisition cash paid | $ 37,800,000 | |||||||||||||||||||
Business acquisition, fair value of contingent consideration | 5,500,000 | |||||||||||||||||||
Business acquisition contingent consideration payments, range minimum | 0 | |||||||||||||||||||
Business acquisition contingent consideration payments, range maximum | $ 10,000,000 | |||||||||||||||||||
Business acquisition contingent consideration liability, current | 9,200,000 | 9,200,000 | ||||||||||||||||||
Stock acquisition, percentage acquired | 100.00% | |||||||||||||||||||
Net sales | 119,700,000 | |||||||||||||||||||
MEDCO [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Business acquisition cash paid | $ 150,400,000 | |||||||||||||||||||
Business acquisition, fair value of contingent consideration | 4,700,000 | |||||||||||||||||||
Business acquisition contingent consideration payments, range minimum | 0 | |||||||||||||||||||
Business acquisition contingent consideration payments, range maximum | $ 10,000,000 | |||||||||||||||||||
Business acquisition contingent consideration liability, current | $ 5,200,000 | 5,200,000 | ||||||||||||||||||
Stock acquisition, percentage acquired | 100.00% | |||||||||||||||||||
Net sales | 274,400,000 | |||||||||||||||||||
Amount reserved as a payable related to acquisition | $ 6,000,000 | |||||||||||||||||||
Business acquisition acquired entity indemnification payment period | 18 months | |||||||||||||||||||
Pro forma net sales | 5,500,000,000 | 5,300,000,000 | ||||||||||||||||||
Pro forma net income (loss) | $ 117,900,000 | $ 127,900,000 | ||||||||||||||||||
Nestor Sales LLC [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Business acquisition cash paid | $ 41,800,000 | |||||||||||||||||||
Stock acquisition, percentage acquired | 100.00% | |||||||||||||||||||
Net sales | $ 27,300,000 | |||||||||||||||||||
[1] | Revised in the third quarter of 2015 for the impact of the changes in accounting principle related to inventory accounting and debt transaction costs. |
Acquisitions and Dispositions57
Acquisitions and Dispositions - Purchase Price Allocation (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | [1] |
Business Acquisition [Line Items] | |||
Goodwill | $ 299,355 | $ 398,042 | |
CPO (Final) [Member] | |||
Business Acquisition [Line Items] | |||
Purchase price, net of cash acquired | 32,225 | ||
Accounts receivable | (2,956) | ||
Inventories | (13,051) | ||
Other current assets | (269) | ||
Property, plant and equipment, net | (488) | ||
Intangible assets | (12,800) | ||
Total assets acquired | (29,564) | ||
Accounts payable | 16,911 | ||
Accrued liabilities | 2,580 | ||
Deferred income taxes | 3,453 | ||
Other long-term liabilities | 90 | ||
Total liabilities assumed | 23,034 | ||
Goodwill | 25,695 | ||
MEDCO (Final) [Member] | |||
Business Acquisition [Line Items] | |||
Purchase price, net of cash acquired | 145,873 | ||
Accounts receivable | (44,815) | ||
Inventories | (55,491) | ||
Other current assets | (1,299) | ||
Property, plant and equipment, net | (4,408) | ||
Other assets | (650) | ||
Intangible assets | (40,000) | ||
Total assets acquired | (146,663) | ||
Accounts payable | 32,383 | ||
Accrued liabilities | 5,542 | ||
Deferred income taxes | 2,167 | ||
Other long-term liabilities | 52 | ||
Total liabilities assumed | 40,144 | ||
Goodwill | 39,354 | ||
Nestor Sales LLC (Preliminary) [Member] | |||
Business Acquisition [Line Items] | |||
Purchase price, net of cash acquired | 39,983 | ||
Accounts receivable | (9,230) | ||
Inventories | (10,542) | ||
Other current assets | (338) | ||
Property, plant and equipment, net | (1,251) | ||
Other assets | (752) | ||
Intangible assets | (17,700) | ||
Total assets acquired | (39,813) | ||
Accounts payable | 4,992 | ||
Accrued liabilities | 1,912 | ||
Deferred income taxes | 4,421 | ||
Other long-term liabilities | 76 | ||
Total liabilities assumed | 11,401 | ||
Goodwill | $ 11,571 | ||
[1] | Revised in the third quarter of 2015 for the impact of the changes in accounting principle related to inventory accounting and debt transaction costs. |
Acquisitions and Dispositions58
Acquisitions and Dispositions - Summary of Purchased Identifiable Intangible Assets (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
CPO (Final) [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite lived intangible assets | $ 12,800 |
MEDCO (Final) [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite lived intangible assets | 40,000 |
Nestor Sales LLC (Preliminary) [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite lived intangible assets | 17,700 |
Customer relationships [Member] | CPO (Final) [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite lived intangible assets | $ 5,200 |
Finite lived intangible assets estimated life | 3 years |
Customer relationships [Member] | MEDCO (Final) [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite lived intangible assets | $ 37,590 |
Customer relationships [Member] | MEDCO (Final) [Member] | Minimum [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite lived intangible assets estimated life | 3 years |
Customer relationships [Member] | MEDCO (Final) [Member] | Maximum [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite lived intangible assets estimated life | 15 years |
Customer relationships [Member] | Nestor Sales LLC (Preliminary) [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite lived intangible assets | $ 16,330 |
Finite lived intangible assets estimated life | 13 years |
Trademarks [Member] | CPO (Final) [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite lived intangible assets | $ 7,600 |
Finite lived intangible assets estimated life | 15 years |
Trademarks [Member] | MEDCO (Final) [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite lived intangible assets | $ 2,410 |
Trademarks [Member] | MEDCO (Final) [Member] | Minimum [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite lived intangible assets estimated life | 1 year 6 months |
Trademarks [Member] | MEDCO (Final) [Member] | Maximum [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite lived intangible assets estimated life | 15 years |
Trademarks [Member] | Nestor Sales LLC (Preliminary) [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite lived intangible assets | $ 1,370 |
Trademarks [Member] | Nestor Sales LLC (Preliminary) [Member] | Minimum [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite lived intangible assets estimated life | 2 years 6 months |
Trademarks [Member] | Nestor Sales LLC (Preliminary) [Member] | Maximum [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite lived intangible assets estimated life | 15 years |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)$ / sharesPlansshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of share-based compensation plans | Plans | 2 | ||
Closing sale price per share | $ / shares | $ 32.51 | $ 42.16 | $ 45.89 |
Stock options granted | 5,538 | 585,189 | |
Minimum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Payout based on economic profit performance against target economic profit goals | 0.00% | 0.00% | 0.00% |
Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Payout based on economic profit performance against target economic profit goals | 200.00% | 200.00% | 200.00% |
Stock Option [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period, in years | 2 years 3 months | ||
Term of stock options, in years | 10 years | ||
Unrecognized compensation cost | $ | $ 0.5 | ||
Share-based compensation, weighed -average period for recognition | 3 months | ||
Stock options granted | 0 | 5,538 | 585,189 |
Restricted Stock [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Restricted stock and restricted stock units granted | 462,697 | 253,042 | 181,916 |
Diluted earnings per share required to determine specific performance measure of stock awards | $ / shares | $ 0.50 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period, in years | 3 years | 3 years | |
Unrecognized compensation cost | $ | $ 16.9 | ||
Share-based compensation, weighed -average period for recognition | 2 years 1 month 6 days | ||
Restricted stock and restricted stock units granted | 162,092 | 176,717 | 166,348 |
Vesting year | 2,018 | ||
Non Employee Directors [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense, directors fees | $ | $ 0.1 | $ 0.1 | $ 0.1 |
Accumulated number of stock units outstanding | 41,051 | 43,082 | 56,737 |
Restricted stock and restricted stock units granted | 30,778 | 20,664 | 23,898 |
Employees [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Restricted stock and restricted stock units granted | 333,268 | 271,594 | 194,517 |
Executive Officer [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Restricted stock and restricted stock units granted | 260,743 | 137,501 | 129,849 |
Terms of granting restricted stock and restricted stock units | the officer is still employed as of the anniversary date of the grant, and the Company’s cumulative diluted earnings per share for the four calendar quarters immediately preceding the vesting date exceed $0.50 per diluted share as defined in the officers’ restricted stock agreement. |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Share-Based Compensation Expense (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||
Pre-tax expense | $ 7,895 | $ 8,195 | [1] | $ 10,808 | [1] |
Tax effect | (3,000) | (3,114) | (4,108) | ||
After tax expense | $ 4,895 | $ 5,081 | $ 6,700 | ||
Denominator for basic shares—Weighted average shares | 37,457 | 38,705 | [1] | 39,650 | [1] |
Denominator for diluted shares—Adjusted weighted average shares and the effect of dilutive securities | 37,457 | 39,130 | [1] | 40,236 | [1] |
Net expense per share—basic | $ 0.13 | $ 0.13 | $ 0.17 | ||
Net expense per share—diluted | $ 0.13 | $ 0.13 | $ 0.17 | ||
[1] | Revised in the third quarter of 2015 for the impact of the changes in accounting principle related to inventory accounting and debt transaction costs. |
Share-Based Compensation - Sc61
Share-Based Compensation - Schedule of Intrinsic Value of Options Outstanding, Exercisable and Exercised (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Intrinsic Value of Options, Outstanding | $ 1,253 | $ 6,092 | $ 9,897 |
Intrinsic Value of Options, Exercisable | 1,253 | 4,543 | 6,262 |
Intrinsic Value of Options, Exercised | $ 902 | $ 537 | $ 13,676 |
Share-Based Compensation - Sc62
Share-Based Compensation - Schedule of Intrinsic Value of Restricted Shares Outstanding and Vested (Detail) - Restricted Stock [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Intrinsic Value of Restricted Shares, Outstanding | $ 34,981 | $ 45,928 | $ 47,780 |
Intrinsic Value of Restricted Shares, Vested | $ 8,159 | $ 10,976 | $ 12,414 |
Share-Based Compensation - Sc63
Share-Based Compensation - Schedule of Valuation Techniques Assumptions (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Weighted average expected term | 5 years 7 months 6 days |
Expected volatility | 39.12% |
Weighted average volatility | 39.12% |
Weighted average expected dividends | 1.24% |
Risk-free rate | 1.75% |
Share-Based Compensation - Sc64
Share-Based Compensation - Schedule of Stock Options (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Options outstanding - Beginning Balance, Shares | 727,378 | 812,160 | 1,371,850 |
Granted, Shares | 5,538 | 585,189 | |
Exercised, Shares | (77,918) | (32,610) | (1,065,920) |
Cancelled, Shares | (200,773) | (57,710) | (78,959) |
Options outstanding - Ending Balance, Shares | 448,687 | 727,378 | 812,160 |
Number of options exercisable, Shares | 195,402 | 273,320 | 305,930 |
Options outstanding - Beginning Balance, Weighted Average Exercise Price | $ 33.81 | $ 33.70 | $ 24.86 |
Granted, Weighted Average Exercise Price | 45.89 | 38.71 | |
Exercised, Weighted Average Exercise Price | 24.11 | 24.43 | 24.69 |
Cancelled, Weighted Average Exercise Price | 38.71 | 38.74 | 38.69 |
Options outstanding - Ending Balance, Weighted Average Exercise Price | 33.31 | 33.81 | 33.70 |
Number of options exercisable, Weighted Average Exercise Price | $ 26.11 | $ 25.54 | $ 25.42 |
Share-Based Compensation - Sc65
Share-Based Compensation - Schedule of Outstanding and Exercisable Options Granted (Detail) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Outstanding | shares | 448,687 |
Remaining Contractual Life (Years) | 4 years 6 months |
Exercisable | shares | 195,402 |
20.00-25.00 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Lower exercise price | $ / shares | $ 20 |
Upper exercise price | $ / shares | $ 25 |
Outstanding | shares | 103,280 |
Remaining Contractual Life (Years) | 7 months 6 days |
Exercisable | shares | 103,280 |
25.01-30.00 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Lower exercise price | $ / shares | $ 25.01 |
Upper exercise price | $ / shares | $ 30 |
Outstanding | shares | 89,876 |
Remaining Contractual Life (Years) | 1 year 4 months 24 days |
Exercisable | shares | 89,876 |
30.01 - 35.00 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Lower exercise price | $ / shares | $ 30.01 |
Upper exercise price | $ / shares | $ 35 |
Outstanding | shares | 2,246 |
Remaining Contractual Life (Years) | 1 year 4 months 24 days |
Exercisable | shares | 2,246 |
35.01 - 40.00 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Lower exercise price | $ / shares | $ 35.01 |
Upper exercise price | $ / shares | $ 40 |
Outstanding | shares | 247,747 |
Remaining Contractual Life (Years) | 7 years 3 months 18 days |
40.01 - 50.00 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Lower exercise price | $ / shares | $ 40.01 |
Upper exercise price | $ / shares | $ 50 |
Outstanding | shares | 5,538 |
Remaining Contractual Life (Years) | 8 years |
Share-Based Compensation - Sc66
Share-Based Compensation - Schedule of Restricted Stock and RSU Grants and Changes (Detail) - Restricted Stock and RSUs [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Beginning Balance, Shares outstanding | 1,089,374 | 1,041,189 | 1,297,906 |
Granted, Shares | 624,789 | 429,759 | 348,264 |
Vested, Shares | (212,537) | (237,739) | (323,159) |
Cancelled, Shares | (425,626) | (143,835) | (281,822) |
Ending Balance, Shares outstanding | 1,076,000 | 1,089,374 | 1,041,189 |
Shares outstanding - Weighted Average Grant Date Fair Value | $ 31.23 | $ 31.24 | $ 28.61 |
Granted, Weighted Average Grant Date Fair Value | 36.79 | 40.52 | 38.28 |
Vested, Weighted Average Grant Date Fair Value | 33.94 | 41.59 | 37.02 |
Cancelled, Weighted Average Grant Date Fair Value | 34.58 | 34.04 | 30.04 |
Shares outstanding - Weighted Average Grant Date Fair Value | $ 36.13 | $ 31.23 | $ 31.24 |
Goodwill and Intangible Asset67
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 01, 2014 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||||
Goodwill impairment | $ 9,000 | $ 117,094 | ||||
Additional reserves in inventory | 4,900 | |||||
Loss on disposition of business | (1,461) | $ 800 | [1] | |||
Impairment of intangible assets | $ 10,200 | |||||
Goodwill | 299,355 | 398,042 | [1] | |||
Intangible assets, net | 96,413 | 111,958 | [1] | |||
Amortization of intangible assets purchased | 13,400 | 8,623 | $ 6,985 | |||
Accumulated amortization of intangible assets | 59,857 | $ 45,203 | ||||
Azerty de Mexico [Member] | ||||||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||||
Goodwill impairment | 3,300 | |||||
Loss on disposition of business | (1,500) | |||||
MBS Dev [Member] | ||||||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||||
Loss on disposition of business | $ (8,200) | |||||
ORS Industrial [Member] | ||||||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||||
Goodwill impairment | 113,800 | |||||
Impairment of indefinite intangible assets | $ 2,100 | |||||
[1] | Revised in the third quarter of 2015 for the impact of the changes in accounting principle related to inventory accounting and debt transaction costs. |
Goodwill and Intangible Asset68
Goodwill and Intangible Assets - Summary of Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | Oct. 01, 2014 | Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Goodwill, balance as of December 31, 2014 | [1] | $ 398,042 | |
Impairment | $ (9,000) | (117,094) | |
Purchase accounting adjustments | 9,427 | ||
Acquisition | 11,571 | ||
Currency translation adjustment | (2,591) | ||
Goodwill, balance as of December 31, 2015 | $ 299,355 | ||
[1] | Revised in the third quarter of 2015 for the impact of the changes in accounting principle related to inventory accounting and debt transaction costs. |
Goodwill and Intangible Asset69
Goodwill and Intangible Assets - Summary of Intangible Assets of Company by Major Class (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Schedule Of Intangible Assets [Line Items] | |||
Intangible assets subject to amortization, Gross Carrying Amount | $ 156,270 | $ 144,861 | |
Intangible assets subject to amortization, Accumulated Amortization | (59,857) | (45,203) | |
Intangible assets subject to amortization, Net Carrying Amount | 96,413 | 99,658 | |
Intangible assets, Gross Carrying Amount | 156,270 | 157,161 | |
Intangible assets, Net Carrying Amount | 96,413 | 111,958 | [1] |
Trademarks not subject to amortization [Member] | |||
Schedule Of Intangible Assets [Line Items] | |||
Intangible assets not subject to amortization, Gross Carrying Amount | 12,300 | ||
Customer relationships and other intangibles [Member] | |||
Schedule Of Intangible Assets [Line Items] | |||
Intangible assets subject to amortization, Gross Carrying Amount | 137,938 | 125,761 | |
Intangible assets subject to amortization, Accumulated Amortization | (51,357) | (41,123) | |
Intangible assets subject to amortization, Net Carrying Amount | $ 86,581 | $ 84,638 | |
Intangible assets subject to amortization, Weighted Average Useful Life (years) | 16 years | 16 years | |
Non-compete Agreements [Member] | |||
Schedule Of Intangible Assets [Line Items] | |||
Intangible assets subject to amortization, Gross Carrying Amount | $ 4,644 | $ 4,672 | |
Intangible assets subject to amortization, Accumulated Amortization | (4,260) | (2,364) | |
Intangible assets subject to amortization, Net Carrying Amount | $ 384 | $ 2,308 | |
Intangible assets subject to amortization, Weighted Average Useful Life (years) | 4 years | 4 years | |
Trademarks [Member] | |||
Schedule Of Intangible Assets [Line Items] | |||
Intangible assets subject to amortization, Gross Carrying Amount | $ 13,688 | $ 14,428 | |
Intangible assets subject to amortization, Accumulated Amortization | (4,240) | (1,716) | |
Intangible assets subject to amortization, Net Carrying Amount | $ 9,448 | $ 12,712 | |
Intangible assets subject to amortization, Weighted Average Useful Life (years) | 14 years | 13 years | |
[1] | Revised in the third quarter of 2015 for the impact of the changes in accounting principle related to inventory accounting and debt transaction costs. |
Goodwill and Intangible Asset70
Goodwill and Intangible Assets - Summary of Amortization Expense Expected to be Incurred Over Next Five Years on Intangible Assets (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2,016 | $ 12,281 |
2,017 | 10,811 |
2,018 | 8,081 |
2,019 | 6,963 |
2,020 | $ 6,960 |
Severance and Restructuring C71
Severance and Restructuring Charges - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Facility Consolidations | Warehousing, Marketing and Administrative Expenses [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Pre-tax charge | $ 1,000,000 | $ 2,500,000 | ||||
Workforce Reduction And Facility Closure Program First Quarter Of 2015 [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Cash outlays associated with severance | 400,000 | 3,400,000 | ||||
Accrued liabilities | 1,900,000 | 1,900,000 | ||||
Workforce Reduction And Facility Closure Program First Quarter Of 2015 [Member] | Warehousing, Marketing and Administrative Expenses [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Pre-tax charge | $ 6,000,000 | |||||
Reversal of severance charges | 700,000 | |||||
Workforce Reduction And Facility Closure Program Fourth Quarter Of 2015 [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Cash outlays associated with severance | 800,000 | |||||
Accrued liabilities | 11,100,000 | 11,100,000 | ||||
Workforce Reduction And Facility Closure Program Fourth Quarter Of 2015 [Member] | Warehousing, Marketing and Administrative Expenses [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Pre-tax charge | 11,900,000 | |||||
Workforce Reduction And Facility Closure Program First Quarter of 2013 [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Pre-tax charge | $ 14,400,000 | |||||
Accrued liabilities | $ 0 | 0 | $ 200,000 | |||
Workforce Reduction And Facility Closure Program First Quarter of 2013 [Member] | Facility Closure Cost [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Pre-tax charge | 1,200,000 | |||||
Workforce Reduction And Facility Closure Program First Quarter of 2013 [Member] | Severance and Related Expenses [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Pre-tax charge | $ 13,200,000 | |||||
Workforce Reduction And Facility Closure Program First Quarter of 2013 [Member] | Severance And Restructuring Charges [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Reversal of severance charges | 300,000 | $ 1,400,000 | ||||
Cash outlays associated with severance | $ 300,000 | $ 3,900,000 | $ 8,600,000 |
Accumulated Other Comprehensi72
Accumulated Other Comprehensive Income (Loss) - Change in Accumulated Other Comprehensive Income (Loss) (AOCI) by Component, Net of Tax (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($) | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
AOCI, balance as of December 31, 2014 | $ (62,791) | [1] |
Other comprehensive (loss) income before reclassifications | (10,509) | |
Amounts reclassified from AOCI | 15,709 | |
Net other comprehensive (loss) income | 5,200 | |
AOCI, balance as of December 31, 2015 | (57,591) | |
Foreign Currency Translation [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
AOCI, balance as of December 31, 2014 | (11,923) | |
Other comprehensive (loss) income before reclassifications | (9,075) | |
Amounts reclassified from AOCI | 11,132 | |
Net other comprehensive (loss) income | 2,057 | |
AOCI, balance as of December 31, 2015 | (9,866) | |
Cash Flow Hedges [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
AOCI, balance as of December 31, 2014 | 274 | |
Other comprehensive (loss) income before reclassifications | (934) | |
Amounts reclassified from AOCI | 806 | |
Net other comprehensive (loss) income | (128) | |
AOCI, balance as of December 31, 2015 | 146 | |
Defined Benefit Pension Plans [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
AOCI, balance as of December 31, 2014 | (51,142) | |
Other comprehensive (loss) income before reclassifications | (500) | |
Amounts reclassified from AOCI | 3,771 | |
Net other comprehensive (loss) income | 3,271 | |
AOCI, balance as of December 31, 2015 | $ (47,871) | |
[1] | Revised in the third quarter of 2015 for the impact of the changes in accounting principle related to inventory accounting and debt transaction costs. |
Accumulated Other Comprehensi73
Accumulated Other Comprehensive Income (Loss) - Amounts Reclassified Out of AOCI into Income Statement (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | [1] | Dec. 31, 2013 | [1] | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||
Warehousing, marketing and administrative expenses | $ 675,913 | $ 595,673 | $ 578,958 | ||||||||||
Cost of goods sold | 4,526,551 | 4,524,676 | 4,297,952 | ||||||||||
Tax provision | (54,541) | (70,773) | (73,507) | ||||||||||
Net income (loss) | $ (95,836) | $ 27,667 | $ 29,834 | $ (6,007) | $ 22,070 | $ 40,231 | $ 30,522 | $ 19,292 | (44,342) | $ 112,115 | $ 122,053 | ||
Amount Reclassified From AOCI [Member] | |||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||
Net income (loss) | 15,709 | ||||||||||||
Amount Reclassified From AOCI [Member] | Foreign Currency Translation [Member] | |||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||
Warehousing, marketing and administrative expenses | 11,132 | ||||||||||||
Amount Reclassified From AOCI [Member] | Cash Flow Hedges [Member] | |||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||
Cost of goods sold | (9) | ||||||||||||
Tax provision | (494) | ||||||||||||
Net income (loss) | 806 | ||||||||||||
Amount Reclassified From AOCI [Member] | Defined Benefit Pension Plans [Member] | |||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||
Warehousing, marketing and administrative expenses | 6,158 | ||||||||||||
Tax provision | (2,387) | ||||||||||||
Net income (loss) | 3,771 | ||||||||||||
Amount Reclassified From AOCI [Member] | Interest Rate Swap [Member] | Cash Flow Hedges [Member] | |||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||
Interest expense, net | $ 1,309 | ||||||||||||
[1] | Revised in the third quarter of 2015 for the impact of the changes in accounting principle related to inventory accounting and debt transaction costs. |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Line Items] | |||
Additional authorized repurchase amount | $ 75,000 | ||
Number of shares repurchased | 1,822,227 | 1,255,705 | |
Repurchase of common stock, value | $ 67,446 | $ 50,591 | $ 62,056 |
Treasury stock reissued, shares | 362,874 | 250,747 | 1,086,502 |
Stock Option [Member] | |||
Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share amount | 300,000 | 500,000 | 500,000 |
Common Stock [Member] | |||
Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share amount | 400,000 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Earnings Per Share [Abstract] | |||||||||||||
Net income (loss) | $ (95,836) | $ 27,667 | $ 29,834 | $ (6,007) | $ 22,070 | $ 40,231 | $ 30,522 | $ 19,292 | $ (44,342) | $ 112,115 | [1] | $ 122,053 | [1] |
Denominator for basic earnings per share - weighted average shares | 37,457 | 38,705 | [1] | 39,650 | [1] | ||||||||
Effect of dilutive securities: Employee stock options and restricted units | 425 | 586 | |||||||||||
Denominator for diluted earnings per share - Adjusted weighted average shares and the effect of dilutive securities | 37,457 | 39,130 | [1] | 40,236 | [1] | ||||||||
Net income (loss) per share - basic | $ (2.61) | $ 0.74 | $ 0.79 | $ (0.16) | $ 0.57 | $ 1.05 | $ 0.79 | $ 0.49 | $ (1.18) | $ 2.90 | [1] | $ 3.08 | [1] |
Net income (loss) per share - diluted | $ (2.61) | $ 0.74 | $ 0.78 | $ (0.16) | $ 0.57 | $ 1.03 | $ 0.78 | $ 0.49 | $ (1.18) | $ 2.87 | [1] | $ 3.03 | [1] |
[1] | Revised in the third quarter of 2015 for the impact of the changes in accounting principle related to inventory accounting and debt transaction costs. |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)CustomerSegmentSupplier | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |||
Segment Reporting Information [Line Items] | |||||||||||||
Net sales | $ 1,297,327 | $ 1,391,545 | $ 1,341,799 | $ 1,332,375 | $ 1,333,082 | $ 1,419,947 | $ 1,320,037 | $ 1,254,139 | $ 5,363,046 | $ 5,327,205 | [1] | $ 5,085,293 | [1] |
Number of Operating Segments | Segment | 4 | ||||||||||||
Number of supplier accounted for more than specified purchases | Supplier | 0 | ||||||||||||
Number of single customer accounted for more than specified sales | Customer | 0 | ||||||||||||
Equity Method Investee [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Purchases from buying group through equity ownership | $ 13,800 | ||||||||||||
Payables to buying group through equity ownership | 1,400 | $ 1,400 | |||||||||||
Supplier Concentration Risk [Member] | Cost of Goods, Total [Member] | Hewlett Packard [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Percentage of consolidated net sales | 14.00% | ||||||||||||
Customer Concentration Risk [Member] | Sales Revenue, Services, Net [Member] | WB Mason [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Percentage of consolidated net sales | 12.00% | ||||||||||||
MEXICO [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net sales | $ 128,300 | 151,300 | 138,200 | ||||||||||
Long-lived assets | $ 32,200 | $ 42,500 | $ 32,200 | $ 42,500 | $ 13,800 | ||||||||
[1] | Revised in the third quarter of 2015 for the impact of the changes in accounting principle related to inventory accounting and debt transaction costs. |
Segment Information - Schedule
Segment Information - Schedule of Net Sales by Product Category (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Segment Reporting Information [Line Items] | |||||||||||||
Net sales | $ 1,297,327 | $ 1,391,545 | $ 1,341,799 | $ 1,332,375 | $ 1,333,082 | $ 1,419,947 | $ 1,320,037 | $ 1,254,139 | $ 5,363,046 | $ 5,327,205 | [1] | $ 5,085,293 | [1] |
Janitorial and breakroom supplies [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net sales | 1,451,829 | 1,435,933 | 1,336,182 | ||||||||||
Technology products [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net sales | 1,365,996 | 1,450,777 | 1,462,756 | ||||||||||
Traditional office products [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net sales | 1,205,845 | 1,329,028 | 1,314,456 | ||||||||||
Industrial supplies [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net sales | 869,019 | 638,781 | 517,810 | ||||||||||
Office furniture [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net sales | 317,494 | 311,282 | 311,403 | ||||||||||
Freight revenue [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net sales | 125,731 | 121,933 | 105,567 | ||||||||||
Other [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net sales | $ 27,132 | $ 39,471 | $ 37,119 | ||||||||||
[1] | Revised in the third quarter of 2015 for the impact of the changes in accounting principle related to inventory accounting and debt transaction costs. |
Debt - Schedule of Long-Term De
Debt - Schedule of Long-Term Debt Components (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
OKI Mortgage & Capital Lease | $ 0.1 | $ 0.9 |
Transaction Costs | (2.2) | (3.1) |
Total | 716.3 | 710.8 |
2013 Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Credit Agreement | 368.4 | 363 |
2013 Note Purchase Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Note Purchase Agreement | 150 | 150 |
Receivables Securitization Program [Member] | ||
Debt Instrument [Line Items] | ||
Credit Agreement | $ 200 | $ 200 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||||
Percentage of outstanding debt priced at variable interest rates | 79.00% | ||||
Effective interest rate | 2.23% | ||||
Percentage of debt unhedged | 58.00% | ||||
Maximum basis-point change that would not affect annual interest expense | 0.50% | ||||
Amount due to movement in interest rates | $ 2,100,000 | ||||
Maximum amount of financing upon amendment of program | 200,000,000 | ||||
Receivables sold to Investors | 448,600,000 | $ 360,300,000 | |||
Receivables Securitization Program [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility | 200,000,000 | 200,000,000 | |||
Outside indebtedness permitted under facility | 200,000,000 | ||||
Receivables Securitization Program [Member] | ESR [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility | 200,000,000 | ||||
2013 Note Purchase Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior Secured notes | $ 150,000,000 | ||||
Maturity date of debt instrument | Jan. 15, 2021 | ||||
Basis spread on variable rate | 3.75% | ||||
Outside indebtedness permitted under facility | $ 150,000,000 | ||||
2013 Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate | 3.66% | ||||
Credit facility | $ 368,400,000 | $ 363,000,000 | |||
Credit agreement expiry date | Jul. 6, 2018 | ||||
Maximum borrowing capacity | $ 700,000,000 | ||||
Outstanding letters of credit | 11,600,000 | ||||
Potential maximum committed principal amount | $ 1,050,000,000 | ||||
LIBOR-based loans rates | 1.75% | ||||
Alternate base rate loans rates | 0.75% | ||||
Percentage of lenders fee on unutilized portion borrowing facility | 3.75% | 4.00% | 4.00% | 3.75% | |
Outside indebtedness permitted under facility | $ 300,000,000 | ||||
2013 Credit Agreement [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
LIBOR-based loans rates | 1.00% | ||||
Alternate base rate loans rates | 0.00% | ||||
Percentage of lenders fee on unutilized portion borrowing facility | 0.15% | ||||
Leverage ratio | 3 | ||||
2013 Credit Agreement [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
LIBOR-based loans rates | 2.00% | ||||
Alternate base rate loans rates | 1.00% | ||||
Percentage of lenders fee on unutilized portion borrowing facility | 0.35% | ||||
Leverage ratio | 3.50 |
Debt - Schedule of Debt Maturit
Debt - Schedule of Debt Maturities (Detail) $ in Millions | Dec. 31, 2015USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 568.4 |
2,021 | 150 |
Total | $ 718.4 |
Leases, Contractual Obligatio81
Leases, Contractual Obligations and Contingencies - Schedule of Future Minimum Lease Payments under Operating Leases (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Leases [Abstract] | |
2,016 | $ 48,770 |
2,017 | 45,665 |
2,018 | 36,167 |
2,019 | 32,271 |
2,020 | 23,657 |
Thereafter | 61,705 |
Total required lease payments | $ 248,235 |
Leases, Contractual Obligatio82
Leases, Contractual Obligations and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leases [Abstract] | |||
Operating lease expense | $ 48.4 | $ 45.1 | $ 46.3 |
Pension Plans and Defined Con83
Pension Plans and Defined Contribution Plan - Additional Information (Detail) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2016USD ($) | Dec. 31, 2015USD ($)Participant | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Accumulated benefit obligation | $ 211,389 | $ 224,086 | $ 183,069 | |
Compensation increase rate | 0.00% | 0.00% | 0.00% | |
Company contributions | $ 5,900 | $ 5,500 | $ 5,300 | |
Essendant Union Employee Pension Plan [Member] | Subsequent Event [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Cash contribution to pension plan during the period | $ 3,000 | |||
Essendant Pension Plan [Member] | Subsequent Event [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Cash contribution to pension plan during the period | $ 7,000 | |||
Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Active associates in the pension plan | Participant | 2,400 | |||
Accumulated benefit obligation | $ 211,400 | |||
Estimated net actuarial loss that will be amortized from accumulated other comprehensive loss | 5,700 | |||
Estimated prior service cost that will be amortized from accumulated other comprehensive loss | 300 | |||
Cash contribution to pension plan during the period | $ 2,000 | $ 2,000 | ||
Pension Plans [Member] | General Plan Assets [Member] | Fixed Income [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocations for plan assets | 45.00% | |||
Pension Plans [Member] | General Plan Assets [Member] | Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocations for plan assets | 36.00% | |||
Pension Plans [Member] | General Plan Assets [Member] | Domestic Real Estate [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocations for plan assets | 9.00% | |||
Pension Plans [Member] | General Plan Assets [Member] | Hedge Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocations for plan assets | 10.00% | |||
Pension Plans [Member] | Union Plan Assets [Member] | Fixed Income [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocations for plan assets | 16.00% | |||
Pension Plans [Member] | Union Plan Assets [Member] | Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocations for plan assets | 61.00% | |||
Pension Plans [Member] | Union Plan Assets [Member] | Domestic Real Estate [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocations for plan assets | 12.00% | |||
Pension Plans [Member] | Union Plan Assets [Member] | Hedge Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocations for plan assets | 10.00% |
Pension Plans and Defined Con84
Pension Plans and Defined Contribution Plan - Schedule of Reconciliation of Changes in Projected Benefit Obligation (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation And Retirement Disclosure [Abstract] | ||
Benefit obligation at beginning of year | $ 224,086 | $ 183,069 |
Service cost—benefit earned during the period | 1,495 | 1,069 |
Interest cost on projected benefit obligation | 8,997 | 8,960 |
Union plan amendments | 1,736 | |
Actuarial (gain) loss | (16,846) | 35,054 |
Benefits paid | (6,343) | (5,802) |
Benefit obligation at end of year | $ 211,389 | $ 224,086 |
Pension Plans and Defined Con85
Pension Plans and Defined Contribution Plan - Schedule of Change in Plan Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year | $ 173,770 | |
Benefits paid | (6,343) | $ (5,802) |
Fair value of plan assets at end of year | 162,977 | 173,770 |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year | 173,771 | 162,250 |
Actual return on plan assets | (6,451) | 15,323 |
Company contributions | 2,000 | 2,000 |
Benefits paid | (6,343) | (5,802) |
Fair value of plan assets at end of year | $ 162,977 | $ 173,771 |
Pension Plans and Defined Con86
Pension Plans and Defined Contribution Plan - Schedule of Pension Plan Investment Allocations (Detail) - Pension Plans [Member] | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 100.00% | 100.00% |
Cash [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 0.40% | 1.10% |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 37.80% | 29.60% |
Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 40.50% | 45.40% |
Real Assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 10.80% | 13.60% |
Hedge Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 10.50% | 10.30% |
Pension Plans and Defined Con87
Pension Plans and Defined Contribution Plan - Schedule of Fair Values of Pension Plan Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total Fair value of plan assets | $ 162,977 | $ 173,770 |
Cash [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Fair value of plan assets | 655 | 1,831 |
U.S. Large Cap [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Fair value of plan assets | 23,072 | 18,612 |
International [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Fair value of plan assets | 18,211 | 16,791 |
Emerging Markets [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Fair value of plan assets | 13,127 | 9,653 |
U.S. Small Cap [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Fair value of plan assets | 7,256 | |
U.S. Fixed Income [Member] | Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Fair value of plan assets | 59,517 | 78,886 |
U.S. Inflation Protected Bonds [Member] | Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Fair value of plan assets | 1,236 | |
High Yield Bonds [Member] | Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Fair value of plan assets | 2,295 | |
International Fixed Income [Member] | Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Fair value of plan assets | 2,900 | |
Domestic Real Estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Fair value of plan assets | 10,464 | 13,870 |
Commodities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Fair value of plan assets | 7,089 | 9,789 |
Hedge Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Fair value of plan assets | 17,155 | 17,941 |
U.S. Small Value Fund [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Fair value of plan assets | 5,274 | |
U.S. Small Growth Fund [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Fair value of plan assets | 1,123 | |
Quoted Prices in Active Markets for Identical Assets or Liabilities Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Fair value of plan assets | 145,822 | 155,829 |
Quoted Prices in Active Markets for Identical Assets or Liabilities Level 1 [Member] | Cash [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Fair value of plan assets | 655 | 1,831 |
Quoted Prices in Active Markets for Identical Assets or Liabilities Level 1 [Member] | U.S. Large Cap [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Fair value of plan assets | 23,072 | 18,612 |
Quoted Prices in Active Markets for Identical Assets or Liabilities Level 1 [Member] | International [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Fair value of plan assets | 18,211 | 16,791 |
Quoted Prices in Active Markets for Identical Assets or Liabilities Level 1 [Member] | Emerging Markets [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Fair value of plan assets | 13,127 | 9,653 |
Quoted Prices in Active Markets for Identical Assets or Liabilities Level 1 [Member] | U.S. Small Cap [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Fair value of plan assets | 7,256 | |
Quoted Prices in Active Markets for Identical Assets or Liabilities Level 1 [Member] | U.S. Fixed Income [Member] | Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Fair value of plan assets | 59,517 | 78,886 |
Quoted Prices in Active Markets for Identical Assets or Liabilities Level 1 [Member] | U.S. Inflation Protected Bonds [Member] | Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Fair value of plan assets | 1,236 | |
Quoted Prices in Active Markets for Identical Assets or Liabilities Level 1 [Member] | High Yield Bonds [Member] | Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Fair value of plan assets | 2,295 | |
Quoted Prices in Active Markets for Identical Assets or Liabilities Level 1 [Member] | International Fixed Income [Member] | Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Fair value of plan assets | 2,900 | |
Quoted Prices in Active Markets for Identical Assets or Liabilities Level 1 [Member] | Domestic Real Estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Fair value of plan assets | 10,464 | 13,870 |
Quoted Prices in Active Markets for Identical Assets or Liabilities Level 1 [Member] | Commodities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Fair value of plan assets | 7,089 | 9,789 |
Quoted Prices in Active Markets for Identical Assets or Liabilities Level 1 [Member] | U.S. Small Value Fund [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Fair value of plan assets | 5,274 | |
Quoted Prices in Active Markets for Identical Assets or Liabilities Level 1 [Member] | U.S. Small Growth Fund [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Fair value of plan assets | 1,123 | |
Significant Other Observable Inputs Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Fair value of plan assets | 17,155 | 17,941 |
Significant Other Observable Inputs Level 2 [Member] | Hedge Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Fair value of plan assets | $ 17,155 | $ 17,941 |
Pension Plans and Defined Con88
Pension Plans and Defined Contribution Plan - Schedule of Fair Values of Pension Plan Assets (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation And Retirement Disclosure [Abstract] | ||
Minimum investment for funding in assets | 98.00% | 98.00% |
Pension Plans and Defined Con89
Pension Plans and Defined Contribution Plan - Schedule of Plan Funded Status (Detail) - Pension Plans [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Funded status of the plan | $ (48,412) | $ (50,316) |
Unrecognized prior service cost | 2,869 | 3,166 |
Unrecognized net actuarial loss | 74,461 | 79,502 |
Net amount recognized | $ 28,918 | $ 32,352 |
Pension Plans and Defined Con90
Pension Plans and Defined Contribution Plan - Schedule of Amounts Recognized in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued benefit liability | $ (48,412) | $ (50,316) |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued benefit liability | (48,412) | (50,316) |
Accumulated other comprehensive income | 77,330 | 82,668 |
Net amount recognized | $ 28,918 | $ 32,352 |
Pension Plans and Defined Con91
Pension Plans and Defined Contribution Plan - Schedule of Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost—benefit earned during the period | $ 1,495 | $ 1,069 | |
Interest cost on projected benefit obligation | 8,997 | 8,960 | |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost—benefit earned during the period | 1,495 | 1,069 | $ 1,479 |
Interest cost on projected benefit obligation | 8,997 | 8,960 | 8,379 |
Expected return on plan assets | (11,217) | (10,286) | (11,338) |
Amortization of prior service cost | 296 | 182 | 192 |
Amortization of actuarial loss | 5,862 | 3,674 | 5,741 |
Net periodic pension cost | $ 5,433 | $ 3,599 | $ 4,453 |
Pension Plans and Defined Con92
Pension Plans and Defined Contribution Plan - Schedule of Actuarial Assumptions for Discount Rates, Expected Long-Term Rates of Return on Plan Assets (Detail) - Pension Plans [Member] | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
General Plan Assets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assumed discount rate | 4.52% | 4.09% | 4.95% |
Expected long-term rate of return on plan assets | 6.50% | 6.30% | 7.30% |
Union Plan Assets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assumed discount rate | 4.55% | 4.16% | 5.10% |
Expected long-term rate of return on plan assets | 6.30% | 7.30% | 7.75% |
Pension Plans and Defined Con93
Pension Plans and Defined Contribution Plan - Schedule of Estimated Future Benefit Payments (Detail) - Pension Plans [Member] $ in Thousands | Dec. 31, 2015USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | $ 8,814 |
2,017 | 8,217 |
2,018 | 8,072 |
2,019 | 9,089 |
2,020 | 10,096 |
2021-2025 | $ 56,163 |
Preferred Stock - Additional In
Preferred Stock - Additional Information (Detail) - shares | Dec. 31, 2015 | Dec. 31, 2014 |
Equity [Abstract] | ||
Preferred stock, shares authorized | 15,000,000 | |
Preferred stock outstanding | 0 | 0 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Income Tax Disclosure [Abstract] | |||||
Currently Payable, Federal | $ 67,702 | $ 72,513 | $ 69,519 | ||
Currently Payable, State | 8,387 | 8,334 | 8,027 | ||
Currently Payable, Foreign | 1,614 | 805 | 715 | ||
Total currently payable | 77,703 | 81,652 | 78,261 | ||
Deferred, net-Federal | (20,929) | (9,510) | (4,491) | ||
Deferred, net-State | (1,778) | (1,085) | (180) | ||
Deferred, net-Foreign | (455) | (284) | (83) | ||
Total deferred, net | (23,162) | (10,879) | [1] | (4,754) | [1] |
Provision for income taxes | $ 54,541 | $ 70,773 | [1] | $ 73,507 | [1] |
[1] | Revised in the third quarter of 2015 for the impact of the changes in accounting principle related to inventory accounting and debt transaction costs. |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rates Varied from Statutory Federal Income Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Income Tax Disclosure [Abstract] | |||||
Tax provision based on the federal statutory rate, Amount | $ 3,569 | $ 64,011 | $ 68,446 | ||
State and local income taxes—net of federal income tax benefit, Amount | 374 | 4,362 | 5,141 | ||
Impairment of goodwill, Amount | 47,468 | (4) | |||
Valuation allowances, Amount | 1,217 | 3,027 | |||
Non-deductible and other, Amount | 1,913 | (623) | (80) | ||
Provision for income taxes | $ 54,541 | $ 70,773 | [1] | $ 73,507 | [1] |
% of Pre-tax Income of Tax provision based on the federal statutory rate | 35.00% | 35.00% | 35.00% | ||
% of Pre-tax Income of State and local income taxes-net of federal income tax benefit | 3.60% | 2.40% | 2.60% | ||
% of Pre-tax Income of Impairment of goodwill | 465.50% | 0.00% | 0.00% | ||
% of Pre-tax Income of Valuation allowances | 11.90% | 1.70% | 0.00% | ||
% of Pre-tax Income of Non-deductible and other | 18.80% | (0.40%) | 0.00% | ||
% of Pre-tax Income of Provision for income taxes | 534.80% | 38.70% | 37.60% | ||
[1] | Revised in the third quarter of 2015 for the impact of the changes in accounting principle related to inventory accounting and debt transaction costs. |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Assets, Accrued expenses | $ 14,287 | $ 12,299 |
Assets, Allowance for doubtful accounts | 10,355 | 7,218 |
Assets, Pension and post-retirement | 14,889 | 18,797 |
Assets, Share-based compensation | 5,721 | 5,653 |
Assets, Income tax credits, capital losses, and net operating losses | 14,462 | 12,550 |
Assets, Restructuring costs | 5,442 | 273 |
Assets, Other | 1,026 | 842 |
Total Deferred | 66,182 | 57,632 |
Valuation Allowance | (9,189) | (7,397) |
Net Deferred, Assets | 56,993 | 50,235 |
Liabilities, Depreciation and amortization | 24,362 | 26,816 |
Liabilities, Intangibles arising from acquisitions | 25,034 | 22,184 |
Liabilities, Inventory reserves and adjustments | 16,086 | 20,164 |
Total Deferred | 65,482 | 69,164 |
Net Deferred Liabilities | $ 65,482 | $ 69,164 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Line Items] | ||||
Prior period reclassification adjustment | $ 0 | |||
Net operating losses carry forward expiration date | Dec. 31, 2033 | |||
Capital loss carryforwards | $ 12,100,000 | |||
Capital loss carryforwards, expiration year | 2,020 | |||
Gross unrecognized tax benefits | $ 3,350,000 | $ 3,205,000 | $ 3,108,000 | $ 3,134,000 |
Unrecognized tax benefits that would impact effective tax rate | 2,200,000 | 2,100,000 | 2,000,000 | |
Gross amount of interest and penalties | 100,000 | 0 | $ 0 | |
Accrued for potential payment of interest and penalties | 600,000 | $ 600,000 | ||
Minimum [Member] | ||||
Income Taxes [Line Items] | ||||
Gross unrecognized tax benefit change in next 12 months | 0 | |||
Maximum [Member] | ||||
Income Taxes [Line Items] | ||||
Gross unrecognized tax benefit change in next 12 months | $ 1,000,000 | |||
State and Local Jurisdiction [Member] | ||||
Income Taxes [Line Items] | ||||
State tax credits carry forward expiration date | Dec. 31, 2020 | |||
Tax credit carryforwards | $ 9,900,000 | |||
Tax credit carryforwards, expiration year | 2,020 | |||
Net operating loss carryforwards | $ 700,000 | |||
Net operating loss carryforwards, expiration year | 2,033 | |||
Federal [Member] | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | $ 4,600,000 | |||
Net operating loss carryforwards, expiration year | 2,031 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Beginning Balance, January 1 | $ 3,205 | $ 3,108 | $ 3,134 |
Additions based on tax positions taken during a prior period | 1 | 123 | 169 |
Reductions based on tax positions taken during a prior period | (14) | (11) | (5) |
Additions based on tax positions taken during the current period | 425 | 382 | 389 |
Reductions related to settlement of tax matters | (46) | (70) | (184) |
Reductions related to lapses of applicable statutes of limitation | (221) | (327) | (395) |
Ending Balance, December 31 | $ 3,350 | $ 3,205 | $ 3,108 |
Supplemental Cash Flow Infor100
Supplemental Cash Flow Information - Schedule of Supplemental Disclosures of Cash Flow Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplemental Cash Flow Information [Abstract] | |||
Interest | $ 19,275 | $ 12,822 | $ 12,385 |
Income taxes, net | $ 76,330 | $ 76,205 | $ 79,526 |
Fair Value of Financial Inst101
Fair Value of Financial Instruments - Schedule of Estimated Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Convertible note receivable | $ 6,775 | |
Non-convertible note receivable | 2,800 | |
Long-term interest rate swap liability | $ 469 | 253 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 29,983 | 20,812 |
Accounts receivable, net | 716,537 | 702,527 |
Foreign exchange hedge asset | 91 | |
Convertible note receivable | 6,775 | |
Non-convertible note receivable | 2,800 | |
Accounts payable | 531,949 | 485,241 |
Debt | 716,315 | 710,768 |
Long-term interest rate swap liability | 469 | 253 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 29,983 | 20,812 |
Accounts receivable, net | 716,537 | 702,527 |
Foreign exchange hedge asset | 91 | |
Convertible note receivable | 6,775 | |
Non-convertible note receivable | 2,800 | |
Accounts payable | 531,949 | 485,241 |
Debt | 716,315 | 710,768 |
Long-term interest rate swap liability | $ 469 | $ 253 |
Other Assets and Liabilities -
Other Assets and Liabilities - Schedule of Other Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Long-Term Assets: | ||||
Investment in deferred compensation | $ 5,440 | $ 4,984 | ||
Long-term prepaid assets | 26,291 | 19,055 | ||
Long-term convertible and non-convertible notes receivable | 9,575 | |||
Long-term income tax asset | 3,412 | 2,881 | ||
Other | 2,205 | 2,174 | ||
Total other long-term assets | 37,348 | 38,669 | [1] | $ 22,185 |
Other Long-Term Liabilities: | ||||
Accrued pension obligation | 48,412 | 50,316 | ||
Deferred rent | 18,948 | 16,241 | ||
Deferred directors compensation | 5,453 | 5,016 | ||
Long-term interest rate swap liability | 469 | 253 | ||
Long-term income tax liability | 3,832 | 3,639 | ||
Long-term merger expenses | 12,965 | 17,229 | ||
Long-term workers compensation liability | 8,039 | 7,155 | ||
Other | 3,370 | 4,545 | ||
Total other long-term liabilities | $ 101,488 | $ 104,394 | [1] | |
[1] | Revised in the third quarter of 2015 for the impact of the changes in accounting principle related to inventory accounting and debt transaction costs. |
Derivative Financial Instrum103
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Derivative [Line Items] | |||
Interest rate swap liability | $ 469,000 | $ 253,000 | |
Outstanding debt percentage | 42.00% | ||
Proceeds from the issuance of debt | [1] | 150,000,000 | |
Minimum debt default amount | $ 25,000,000 | ||
Fair value | $ 500,000 | ||
Cash Flow Hedging | |||
Derivative [Line Items] | |||
Percentage of hedged inventory on Canadian purchases | 25.00% | ||
Hedge on inventory purchase | $ 2,200,000 | ||
Interest rate swap assets | 100,000 | ||
Private Placement [Member] | |||
Derivative [Line Items] | |||
Proceeds from the issuance of debt | 150,000,000 | ||
Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Interest rate swap liability | $ 500,000 | $ 300,000 | |
Derivative, maturity date | Jul. 31, 2017 | ||
Proceeds from the issuance of debt | $ 150,000,000 | ||
July 2012 Swap Transaction [Member] | |||
Derivative [Line Items] | |||
Derivative notional amounts | $ 150,000,000 | ||
Derivative fixed interest rate | 1.05% | ||
Floating rate payments | one-month LIBOR | ||
[1] | Revised in the third quarter of 2015 for the impact of the changes in accounting principle related to inventory accounting and debt transaction costs. |
Derivative Financial Instrum104
Derivative Financial Instruments - Schedule of Effect of Derivative Instruments on Statements of Operations and Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Interest Rate Swap [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | $ 1,177 | $ 105 |
Interest Rate Swap [Member] | Interest expense, net [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 1,309 | $ 625 |
Foreign Exchange Hedges [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | 147 | |
Foreign Exchange Hedges [Member] | Cost of goods sold [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | $ (9) |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Instruments Measured at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap liability | $ 469 | $ 253 |
Convertible note receivable | 6,775 | |
Non-convertible note receivable | 2,800 | |
Total | 9,828 | |
Foreign Exchange [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign exchange hedge asset | 91 | |
Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap liability | 469 | 253 |
Significant Other Observable Inputs Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 253 | |
Significant Other Observable Inputs Level 2 [Member] | Foreign Exchange [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign exchange hedge asset | 91 | |
Significant Other Observable Inputs Level 2 [Member] | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap liability | $ 469 | 253 |
Significant Unobservable Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible note receivable | 6,775 | |
Non-convertible note receivable | 2,800 | |
Total | $ 9,575 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | ||
Receivables sold to Investors | $ 448,600,000 | $ 360,300,000 |
Assets measured at fair value on a nonrecurring basis | 0 | |
Liabilities measured at fair value on a nonrecurring basis | $ 0 | |
Maturity date of note receivable | Dec. 16, 2019 |
Legal Matters - Additional Info
Legal Matters - Additional Information (Detail) | Jan. 14, 2016Lawsuit | May. 01, 2015Lawsuit | Dec. 31, 2015USD ($)Lawsuit |
Commitments And Contingencies [Line Items] | |||
Number of lawsuits filed | 2 | ||
Inadvertent Violation under TCPA for Unsolicited Fax Advertisement [Member] | |||
Commitments And Contingencies [Line Items] | |||
Damages sought by plaintiff per violation | $ | $ 500 | ||
Willful Violation under TCPA for Unsolicited Fax Advertisement [Member] | |||
Commitments And Contingencies [Line Items] | |||
Damages sought by plaintiff per violation | $ | $ 1,500 | ||
United States District Court California [Member] | |||
Commitments And Contingencies [Line Items] | |||
Number of lawsuits filed | 1 | ||
United States District Court Illinois [Member] | Subsequent Event [Member] | |||
Commitments And Contingencies [Line Items] | |||
Number of lawsuits filed | 1 |
Quarterly Financial Data-Una108
Quarterly Financial Data-Unaudited - Schedule of Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | [1] | Dec. 31, 2013 | [1] | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||
Net sales | $ 1,297,327 | $ 1,391,545 | $ 1,341,799 | $ 1,332,375 | $ 1,333,082 | $ 1,419,947 | $ 1,320,037 | $ 1,254,139 | $ 5,363,046 | $ 5,327,205 | $ 5,085,293 | ||
Gross profit | 200,838 | 225,143 | 210,119 | 200,395 | 209,398 | 216,701 | 195,552 | 180,878 | 836,495 | 802,529 | 787,341 | ||
Net income (loss) | $ (95,836) | $ 27,667 | $ 29,834 | $ (6,007) | $ 22,070 | $ 40,231 | $ 30,522 | $ 19,292 | $ (44,342) | $ 112,115 | $ 122,053 | ||
Net income (loss) per share - basic | $ (2.61) | $ 0.74 | $ 0.79 | $ (0.16) | $ 0.57 | $ 1.05 | $ 0.79 | $ 0.49 | $ (1.18) | $ 2.90 | $ 3.08 | ||
Net income (loss) per share - diluted | $ (2.61) | $ 0.74 | $ 0.78 | $ (0.16) | $ 0.57 | $ 1.03 | $ 0.78 | $ 0.49 | $ (1.18) | $ 2.87 | $ 3.03 | ||
[1] | Revised in the third quarter of 2015 for the impact of the changes in accounting principle related to inventory accounting and debt transaction costs. |
Quarterly Financial Data-Una109
Quarterly Financial Data-Unaudited - Schedule of Quarterly Financial Data (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | [1] | |
Schedule Of Quarterly Financial Data [Line Items] | ||||||||
Intangible asset impairment charge and accelerated amortization related to rebranding | $ 500 | $ 500 | $ 500 | $ 10,500 | $ 12,000 | |||
Notes receivable impairment | 10,700 | 10,700 | ||||||
Loss on disposition of business | 2,100 | 1,400 | 13,600 | 17,000 | ||||
Loss (gain) on disposition of business | 1,461 | $ (800) | ||||||
MBS Dev, Inc [Member] | ||||||||
Schedule Of Quarterly Financial Data [Line Items] | ||||||||
Loss (gain) on disposition of business | $ 8,200 | |||||||
ORS Industrial [Member] | ||||||||
Schedule Of Quarterly Financial Data [Line Items] | ||||||||
Inventory obsolescence reserve and impairment of goodwill and intangible assets | 120,700 | 120,700 | ||||||
Workforce Reduction and Facility Closure Program [Member] | ||||||||
Schedule Of Quarterly Financial Data [Line Items] | ||||||||
Severance and Restructuring Charges | $ 12,100 | $ 200 | $ (100) | $ 6,400 | $ 18,600 | |||
[1] | Revised in the third quarter of 2015 for the impact of the changes in accounting principle related to inventory accounting and debt transaction costs. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts (Detail) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 19,725 | $ 20,608 | $ 22,716 |
Additions Charged to Costs and Expenses | 3,231 | 4,898 | 4,888 |
Deductions | (5,146) | (5,781) | (6,504) |
Reclassifications | (492) | ||
Balance at End of Period | $ 17,810 | $ 19,725 | $ 20,608 |