Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jul. 01, 2018 | Jul. 27, 2018 | |
Document Information [Line Items] | ||
Entity Registrant Name | HAWKINS INC | |
Entity Central Index Key | 46,250 | |
Document Type | 10-Q | |
Document Period End Date | Jul. 1, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 10,712,352 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jul. 01, 2018 | Apr. 01, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 5,177 | $ 4,990 |
Trade receivables — less allowance for doubtful accounts: $970 as of July 1, 2018 and $942 as of April 1, 2018 | 67,938 | 63,507 |
Inventories | 66,367 | 59,736 |
Income taxes receivable | 0 | 2,643 |
Prepaid expenses and other current assets | 3,461 | 4,106 |
Total current assets | 142,943 | 134,982 |
PROPERTY, PLANT, AND EQUIPMENT: | ||
PROPERTY, PLANT, AND EQUIPMENT: | 239,863 | 238,165 |
Less accumulated depreciation | 118,137 | 114,339 |
Net property, plant, and equipment | 121,726 | 123,826 |
OTHER ASSETS: | ||
Goodwill | 58,440 | 58,440 |
Intangible assets, net | 69,774 | 71,179 |
Other | 3,832 | 2,564 |
Total other assets | 132,046 | 132,183 |
Total assets | 396,715 | 390,991 |
CURRENT LIABILITIES: | ||
Accounts payable — trade | 36,703 | 33,424 |
Dividends payable | 0 | 4,704 |
Accrued payroll and employee benefits | 5,409 | 8,399 |
Income tax payable | 776 | 0 |
Current portion of long-term debt | 9,864 | 9,864 |
Container deposits | 1,291 | 1,241 |
Other current liabilities | 2,487 | 2,935 |
Total current liabilities | 56,530 | 60,567 |
LONG-TERM DEBT, LESS CURRENT PORTION | 90,796 | 90,762 |
PENSION WITHDRAWAL LIABILITY | 5,565 | 5,646 |
DEFERRED INCOME TAXES | 27,392 | 27,383 |
OTHER LONG-TERM LIABILITIES | 4,153 | 4,386 |
Total liabilities | 184,436 | 188,744 |
COMMITMENTS AND CONTINGENCIES | 0 | 0 |
SHAREHOLDERS’ EQUITY: | ||
Common stock; authorized: 30,000,000 shares of $0.05 par value; 10,670,985 and 10,631,992 shares issued and outstanding as of July 1, 2018 and April 1, 2018, respectively | 534 | 532 |
Additional paid-in capital | 54,757 | 53,877 |
Retained earnings | 156,365 | 147,242 |
Accumulated other comprehensive income | 623 | 596 |
Total shareholders’ equity | 212,279 | 202,247 |
Total liabilities and shareholders’ equity | $ 396,715 | $ 390,991 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Jul. 01, 2018 | Apr. 01, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts, trade receivables | $ 970 | $ 942 |
Shares authorized | 30,000,000 | 30,000,000 |
Common stock, par value (usd per share) | $ 0.05 | $ 0.05 |
Common Stock, Shares, Issued | 10,670,985 | 10,631,992 |
Common Stock, Shares, Outstanding | 10,670,985 | 10,631,992 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 01, 2018 | Jul. 02, 2017 | |
Income Statement [Abstract] | ||
Sales | $ 149,800 | $ 133,731 |
Cost of sales | (121,343) | (107,732) |
Gross profit | 28,457 | 25,999 |
Selling, general and administrative expenses | (14,979) | (15,766) |
Operating income | 13,478 | 10,233 |
Interest expense, net | (936) | (750) |
Income before income taxes | 12,542 | 9,483 |
Income tax expense | (3,419) | (3,652) |
Net income | $ 9,123 | $ 5,831 |
Weighted average number of shares outstanding - basic | 10,648,226 | 10,582,989 |
Weighted average number of shares outstanding - diluted | 10,682,060 | 10,615,692 |
Basic earnings per share | ||
Basic earnings per share | $ 0.86 | $ 0.55 |
Diluted earnings per share | ||
Diluted earnings per share | 0.85 | 0.55 |
Cash dividends declared per common share | $ 0 | $ 0 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 01, 2018 | Jul. 02, 2017 | |
Net income | $ 9,123 | $ 5,831 |
Other comprehensive income (loss), net of tax: | ||
Total comprehensive income | 9,150 | 5,763 |
Interest Rate Swap [Member] | ||
Other comprehensive income (loss), net of tax: | ||
Unrealized gain (loss) on interest rate swap | $ 27 | $ (68) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 01, 2018 | Jul. 02, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 9,123 | $ 5,831 |
Reconciliation to cash flows: | ||
Depreciation and amortization | 5,507 | 5,831 |
Amortization of debt issuance costs | 34 | 34 |
Loss on deferred compensation assets | 2 | 0 |
Stock compensation expense | 470 | 409 |
Loss on property disposals | 78 | 15 |
Changes in operating accounts providing (using) cash: | ||
Trade receivables | (4,432) | (4,558) |
Inventories | (6,631) | (14,303) |
Accounts payable | 3,536 | (1,178) |
Accrued liabilities | (3,708) | (3,599) |
Income taxes | 3,419 | 35 |
Other | (583) | (464) |
Net cash provided by (used in) operating activities | 6,815 | (11,947) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant, and equipment | (2,371) | (6,556) |
Other | 35 | 49 |
Net cash used in investing activities | (2,336) | (6,507) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Cash dividends paid | (4,704) | (4,466) |
New shares issued | 677 | 704 |
Shares surrendered for payroll taxes | 265 | 0 |
Net proceeds from revolver borrowings | 2,500 | 20,000 |
Payments on term loan borrowings | (2,500) | (1,875) |
Net cash (used in) provided by financing activities | (4,292) | 14,363 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 187 | (4,091) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 4,990 | 6,861 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 5,177 | 2,770 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid for income taxes | 0 | 3,277 |
Cash paid for interest | 872 | 683 |
Noncash investing activities - capital expenditures in accounts payable | $ 211 | $ 296 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jul. 01, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions for Form 10-Q and, accordingly, do not include all information and footnotes required by generally accepted accounting principles for complete financial statements. These financial statements should be read in conjunction with the consolidated financial statements and footnotes included in our Annual Report on Form 10-K for the fiscal year ended April 1, 2018 , previously filed with the Securities and Exchange Commission (“SEC”). In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary to present fairly our financial position and the results of our operations and cash flows for the periods presented. All adjustments made to the interim condensed consolidated financial statements were of a normal recurring nature. All significant intercompany accounts and transactions have been eliminated in consolidation. The accounting policies we follow are set forth in Note 1 – Nature of Business and Significant Accounting Policies to our consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended April 1, 2018 , previously filed with the SEC. With the exception of our policy regarding revenue recognition (see Note 2), there has been no significant change in our accounting policies since the end of fiscal 2018 . The results of operations for the three months ended July 1, 2018 are not necessarily indicative of the results that may be expected for the full year. References to fiscal 2018 refer to the fiscal year ended April 1, 2018 and references to fiscal 2019 refer to the fiscal year ending March 31, 2019 . Recently Issued Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02 which provides new accounting guidance requiring lessees to recognize most leases as assets and liabilities on the balance sheet. This guidance will be effective for interim periods beginning after December 15, 2018 (our fiscal year ending March 30, 2020). While we are still in the process of evaluating the effect of adoption on our consolidated financial statements and are currently assessing our leases, t he core principal of the guidance is that an entity should recognize assets and liabilities arising from a lease for both financing and operating leases, along with additional qualitative and quantitative disclosures. As part of our assessment, we will need to determine the impact of lease extension provisions provided in our facility leases which will impact the amount of the right of use asset and lease liability recorded under the ASU. Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, which provides accounting requirements for recognition of revenue from contracts with customers. We adopted the new standard effective April 2, 2018, and there was no impact to our financial position or results of operations. See Note 2 for disclosures required upon adoption of this new standard. In January 2016, the FASB issued ASU 2016-01 which provides guidance that addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. We adopted the new standard effective April 2, 2018, and there was no impact to our financial position or results of operations. |
Revenue
Revenue | 3 Months Ended |
Jul. 01, 2018 | |
Revenue [Abstract] | |
Revenue Recognition, Deferred Revenue [Policy Text Block] | Revenue On April 2, 2018, we adopted ASU 2014-09 using the modified retrospective method applied to those contracts which were not completed as of April 2, 2018. Results for reporting periods beginning after April 2, 2018 are presented under ASU 2014-09, while prior period amounts are not adjusted and continue to be reported in accordance with historic accounting under Accounting Standards Codification (“ASC”) Topic 605. Our revenue arrangements generally consist of a single performance obligation to transfer promised goods or services. As a result, the application of ASU 2014-09 had no impact on our financial statement line items as compared with the guidance that was in effect before the change. Accordingly, the impact of adopting the standard resulted in no adjustment to accumulated retained earnings. We disaggregate revenues from contracts with customers by both operating segments and types of product sold. Reporting by operating segment is pertinent to understanding our revenues, as it aligns to how we review the financial performance of our operations. Types of products sold within each operating segment help us to further evaluate the financial performance of our segments. The following table disaggregates external customer net sales by major revenue stream for the three months ended July 1, 2018: (In thousands) Industrial Water Health and Total Bulk / Distributed products (1) $ 13,725 $ 5,884 $ 30,179 $ 49,788 Specialty / Manufactured products (2) 58,842 34,525 4,055 97,422 Other $ 1,451 $ 460 $ 679 2,590 Total external customer sales $ 74,018 $ 40,869 $ 34,913 $ 149,800 (1) For our Industrial and Water Treatment segments, this line includes our bulk products that we do not modify in any way, but receive, store, and ship from our facilities, or direct ship to our customers in large quantities. For our Health and Nutrition segment, this line includes our non-manufactured distributed specialty products, which may be sold out of one of our facilities or direct shipped to our customers. (2) For our Industrial and Water Treatment segments, this line includes our non-bulk specialty products that we either manufacture, blend, repackage, resell in their original form, or direct ship to our customers in smaller quantities. For our Health and Nutrition segments, this line includes products manufactured in our facility. Net sales include products and shipping charges, net of estimates for product returns and any related sales rebates. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products. All revenue is recognized when we satisfy our performance obligations under the contract. Our criteria for recording revenue is consistent between our operating segments and types of products sold. We recognize revenue upon transfer of control of the promised products to the customer, with revenue recognized at the point in time the customer obtains control of the products. In arrangements where product is shipped directly from the vendor to our customer, we act as the principal in the transaction as we direct the other party to provide the product to our customer on our behalf, take inventory risk, establish the selling price, and are exposed to credit risk for the collection of the invoiced amount. If there were circumstances where we were to manufacture products for customers that were unique to their specifications and we would be prohibited by contract to use the product for any alternate use, we would recognize revenue over time if all criteria were met. We have made a policy election to treat shipping costs for FOB shipping point sales as fulfillment costs. As such, we recognize revenue for all shipping charges, if applicable, at the same time we recognize revenue on the products delivered. We estimate product returns based on historical return rates. Using probability assessments, we estimate sales rebates expected to be paid over the term of the contract. The majority of our contracts have a single performance obligation and are short term in nature. Sales taxes that are collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales. We offer certain customers cash discounts and volume rebates as sales incentives. The discounts and volume rebates are recorded as a reduction in sales at the time revenue is recognized in an amount estimated based on historical experience and contractual obligations. We periodically review the assumptions underlying our estimates of discounts and volume rebates and adjusts its revenues accordingly. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Jul. 01, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic earnings per share (“EPS”) are computed by dividing net earnings by the weighted-average number of common shares outstanding. Diluted EPS includes the incremental shares assumed to be issued as performance units and restricted stock. Basic and diluted EPS were calculated using the following: Three Months Ended July 1, July 2, Weighted-average common shares outstanding—basic 10,648,226 10,582,989 Dilutive impact of performance units and restricted stock 33,834 32,703 Weighted-average common shares outstanding—diluted 10,682,060 10,615,692 For each of the three months ended July 1, 2018 and July 2, 2017 , there were no shares excluded from the calculation of weighted-average common shares for diluted EPS. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Jul. 01, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivative Instruments We have in place an interest rate swap agreement to manage the risk associated with a portion of our variable-rate long-term debt. We do not utilize derivative instruments for speculative purposes. The interest rate swap involves the exchange of fixed-rate and variable-rate payments without the exchange of the underlying notional amount on which the interest payments are calculated. The swap agreement will terminate concurrently with the expiration of our credit facility on December 23, 2020. The notional amount of the swap agreement is $40 million from September 1, 2017 through August 31, 2018, $30 million from September 1, 2018 through August 31, 2019 and $20 million from September 1, 2019 through December 23, 2020. We have designated this swap as a cash flow hedge and have determined that it qualifies for hedge accounting treatment. For so long as the hedge is effective, changes in fair value of the cash flow hedge are recorded in other comprehensive income (net of tax) until income or loss from the cash flows of the hedged item is realized. For the three months ended July 1, 2018 , we recorded a nominal amount in other comprehensive income related to unrealized gains (net of tax) on the cash flow hedge described above. For the three months ended July 2, 2017 we recorded $0.1 million , in other comprehensive income related to unrealized losses (net of tax) on the cash flow hedge. Included in other long-term assets on our condensed consolidated balance sheet was $0.9 million as of July 1, 2018 and $0.8 million as of April 1, 2018 related to the cash flow hedge. Unrealized gains and losses will be reflected in net income when the related cash flows or hedged transactions occur and offset the related performance of the hedged item. By their nature, derivative instruments are subject to market risk. Derivative instruments are also subject to credit risk associated with counterparties to the derivative contracts. Credit risk associated with derivatives is measured based on the replacement cost should the counterparty with a contract in a gain position to us fail to perform under the terms of the contract. We do not anticipate nonperformance by the counterparty. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jul. 01, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Measurement Inputs, Disclosure [Text Block] | Fair Value Measurements Our financial assets and liabilities are measured at fair value at the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We classify the inputs used to measure fair value into the following hierarchy: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Quoted prices in active markets for similar assets or liabilities, or quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable or can be corroborated by observable market data for the asset or liability. Level 3: Unobservable inputs for the asset or liability that are supported by little or no market activity. These fair values are determined using pricing models for which the assumptions utilize management’s estimates or market participant assumptions. Assets and Liabilities Measured at Fair Value on a Recurring Basis. The fair value hierarchy requires the use of observable market data when available. In instances where inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. Our financial assets that are measured at fair value on a recurring basis are an interest rate swap and assets held in a deferred compensation retirement plan. Both of these assets are classified as other long-term assets on our balance sheet, with the portion of the deferred compensation retirement plan assets expected to be paid within twelve months reclassified to current assets. The fair value of the interest rate swap is determined by the respective counterparties based on interest rate changes. Interest rate swaps are valued based on observable interest rate yield curves for similar instruments. The deferred compensation plan assets relate to contributions made to a non-qualified compensation plan, established in fiscal 2017, on behalf of certain employees who are classified as “highly compensated employees” as determined by IRS guidelines. The assets are part of a rabbi trust and the funds are held in mutual funds. The fair value of the deferred compensation is based on the quoted market prices for the mutual funds at the end of the period. The following table summarizes the balances of assets measured at fair value on a recurring basis as of July 1, 2018 and April 1, 2018 . 0 July 1, 2018 (In thousands) Level 1 Level 2 Level 3 Interest rate swap — 855 — Deferred compensation plan assets $ 2,607 — — April 1, 2018 (In thousands) Level 1 Level 2 Level 3 Interest rate swap — $ 819 — Deferred compensation plan assets 1,392 $ — — |
Inventories
Inventories | 3 Months Ended |
Jul. 01, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories at July 1, 2018 and April 1, 2018 consisted of the following: July 1, April 1, (In thousands) Inventory (FIFO basis) $ 72,284 $ 65,322 LIFO reserve (5,917 ) (5,586 ) Net inventory $ 66,367 $ 59,736 The FIFO value of inventories accounted for under the LIFO method was $49.5 million at July 1, 2018 and $44.0 million at April 1, 2018 . The remainder of the inventory was valued and accounted for under the FIFO method. The LIFO reserve increased $0.3 million during the three months ended July 1, 2018 and increased $0.5 million during the three months ended July 2, 2017 . The valuation of LIFO inventory for interim periods is based on our estimates of year-end inventory levels and costs. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Jul. 01, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The carrying amount of goodwill was $58.4 million as of July 1, 2018 and April 1, 2018 , of which $44.9 million was related to our Health and Nutrition segment. A summary of our intangible assets as of July 1, 2018 and April 1, 2018 is as follows: July 1, 2018 April 1, 2018 (In thousands) Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net Finite-life intangible assets Customer relationships $ 78,383 $ (13,542 ) $ 64,841 $ 78,383 $ (12,419 ) $ 65,964 Trademarks and trade names 6,045 (2,664 ) 3,381 6,045 (2,490 ) 3,555 Other finite-life intangible assets 3,648 (3,323 ) 325 3,648 (3,215 ) 433 Total finite-life intangible assets 88,076 (19,529 ) 68,547 88,076 (18,124 ) 69,952 Indefinite-life intangible assets 1,227 — 1,227 1,227 — 1,227 Total intangible assets $ 89,303 $ (19,529 ) $ 69,774 $ 89,303 $ (18,124 ) $ 71,179 |
Debt
Debt | 3 Months Ended |
Jul. 01, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt at July 1, 2018 and April 1, 2018 consisted of the following: July 1, April 1, (In thousands) Senior secured term loan $ 82,500 $ 85,000 Senior secured revolving loan 18,500 16,000 Total debt 101,000 101,000 Less: unamortized debt issuance costs (340 ) (374 ) Total debt, net of debt issuance costs 100,660 100,626 Less: current portion of long-term debt (9,864 ) (9,864 ) Total long-term debt $ 90,796 $ 90,762 |
Income Taxes
Income Taxes | 3 Months Ended |
Jul. 01, 2018 | |
Income Tax [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes We are subject to U.S. federal income tax as well as income tax of multiple state jurisdictions. The tax years prior to our fiscal year ended April 3, 2016 are closed to examination by the Internal Revenue Service. For state and local income tax jurisdictions, the tax years prior to our fiscal year ended March 29, 2015 are closed to examination, with few exceptions. Our effective tax rate for the three months ended July 1, 2018 was 27.3% , compared to an effective tax rate of 38.5% for the three months ended July 2, 2017 . The effective tax rate is impacted by projected levels of annual taxable income, permanent items, and state taxes. The decrease in the effective tax rate from the prior year resulted from impacts of the U.S. Tax Cuts and Jobs Act (the “Tax Act”) enacted in December 2017, which reduced the U.S. corporate tax rate from 35% to 21% , offset slightly by the elimination of the domestic manufacturing deduction. Under GAAP, deferred tax assets and liabilities are required to be revalued during the period in which the new tax legislation is enacted. As such, during the fiscal year-end ended April 1, 2018 we revalued our net deferred tax liabilities to reflect the impact of the Tax Act and recorded a one-time benefit of $13.9 million . Pursuant to ASU 2018-05 (regarding the application of ASC 740 associated with the enactment of the Tax Act), the tax benefit we recorded in fiscal year 2018 was provisional. The final impact of the Tax Act may differ due to and among other things, changes in interpretations, assumptions made by the Company and the issuance of additional guidance that may be provided. Specifically, no adjustment was recorded related to the impact of the Tax Act on state taxes, as we could not reasonably estimate the impact and do not expect any such impact to be material to our financial statements. There have been no changes to the provisional amounts recorded during fiscal 2018 in the three months ended July 1, 2018 and we have not finalized our accounting for the impact of the Tax Act. As of July 1, 2018 and April 1, 2018 , our balance sheet included a long-term liability for uncertain tax positions of $0.2 million , which arose from tax positions taken by Stauber on its tax returns for periods prior to our acquisition. Because the Stauber acquisition agreement provides us with indemnification by the prior owners for any tax liabilities relating to pre-acquisition tax returns, we have also recorded an offsetting, long-term receivable of $0.2 million as of July 1, 2018 and April 1, 2018 . As a result, any change in the unrecognized tax benefit will not impact our effective tax rate in future periods. We expect these uncertain income tax amounts to decrease through September 2019 as the applicable examination periods for the relevant taxing authorities expire. |
Share Based Compensation
Share Based Compensation | 3 Months Ended |
Jul. 01, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation Performance-Based Restricted Stock Units . Our Board of Directors (the “Board”) approved a performance-based equity compensation arrangement for our executive officers during the first quarters of each of fiscal 2019 and fiscal 2018 . These performance-based arrangements provide for the grant of performance-based restricted stock units that represent a possible future issuance of restricted shares of our common stock based on a pre-tax income target for the applicable fiscal year. The actual number of restricted shares to be issued to each executive officer is determined when our final financial information becomes available after the applicable fiscal year and will be between zero shares and 69,936 shares in the aggregate for fiscal 2019 . The restricted shares issued will fully vest two years after the last day of the fiscal year on which the performance is based. We are recording the compensation expense for the outstanding performance share units and the converted restricted stock over the life of the awards. The following table represents the restricted stock activity for the three months ended July 1, 2018 : Shares Weighted- Average Grant Date Fair Value Unvested at beginning of period 51,143 $ 45.39 Granted 7,818 31.35 Vested (24,567 ) 43.10 Unvested at end of period 34,394 $ 36.70 We recorded compensation expense related to performance share units and restricted stock of $0.3 million and $0.2 million for the three months ended July 1, 2018 and July 2, 2017 , respectively. Substantially all of the compensation expense was recorded in selling, general and administrative expenses in the condensed consolidated statements of income. Restricted Stock Awards . As part of their retainer, each non-employee director receives an annual grant of restricted stock for their Board of Director services. The restricted stock awards are expensed over the requisite vesting period, which is one year from the date of issuance, based on the market value on the date of grant. As of July 1, 2018 , there were 8,484 shares of restricted stock with a grant date fair value of $41.25 outstanding under this program. Compensation expense for the three months ended July 1, 2018 and July 2, 2017 related to restricted stock awards to the Board was $0.1 million . |
Share Repurchase Program
Share Repurchase Program | 3 Months Ended |
Jul. 01, 2018 | |
Share Repurchase Program [Abstract] | |
Share Repurchase Program | Share Repurchase Program Our board of directors has authorized the repurchase of up to 300,000 shares of our outstanding common stock for cash on the open market or in privately negotiated transactions subject to applicable securities laws and regulations. Upon repurchase of the shares, we reduce our common stock for the par value of the shares with the excess applied against additional paid-in capital. No shares were repurchased during the three months ended July 1, 2018 or during fiscal 2018. As of July 1, 2018 , 112,546 shares remained available to be repurchased under the share repurchase program. |
Litigation, Commitments and Con
Litigation, Commitments and Contingencies | 3 Months Ended |
Jul. 01, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation, Commitments and Contingencies | Litigation, Commitments and Contingencies Litigation. There are no material pending legal proceedings, other than ordinary routine litigation incidental to the business, to which we or any of our subsidiaries are a party or of which any of our property is the subject. Legal fees associated with such matters are expensed as incurred. Environmental Remediation. During the fourth quarter of fiscal 2018, we recorded a liability of $0.6 million related to estimated remediation expenses associated with existing trichloroethylene contamination at our Minneapolis facility. The liability is not discounted as management expects to incur these expenses during fiscal 2019. Given the many uncertainties involved in assessing environmental claims, our reserves may prove to be insufficient. While it is possible that additional expenses related to remediation will be incurred in future periods if currently unknown issues arise, we are unable to estimate the extent of any further financial impact. No adjustment was made to the liability during the three months ended July 1, 2018. |
Segment Information
Segment Information | 3 Months Ended |
Jul. 01, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We have three reportable segments: Industrial, Water Treatment, and Health and Nutrition. The accounting policies of the segments are the same as those described in the summary of significant accounting policies in our fiscal 2018 Annual Report on Form 10-K. We evaluate performance based on profit or loss from operations before income taxes not including nonrecurring gains and losses. Reportable segments are defined primarily by product and type of customer. Segments are responsible for the sales, marketing and development of their products and services. Other than our Health and Nutrition segment, the segments do not have separate accounting, administration, customer service or purchasing functions. We allocate certain corporate expenses to our operating segments. There are no intersegment sales and no operating segments have been aggregated. No single customer’s revenues amounted to 10% or more of our total revenue. Sales are primarily within the United States and all assets are located within the United States. (In thousands) Industrial Water Treatment Health and Nutrition Total Three months ended July 1, 2018: Sales $ 74,018 $ 40,869 $ 34,913 $ 149,800 Gross profit 10,443 11,437 6,577 28,457 Selling, general, and administrative expenses 5,487 5,101 4,391 14,979 Operating income 4,956 6,336 2,186 13,478 Three months ended July 2, 2017: Sales $ 64,027 $ 38,224 $ 31,480 $ 133,731 Gross profit 8,973 11,203 5,823 25,999 Selling, general, and administrative expenses 5,756 5,257 4,753 15,766 Operating income 3,217 5,946 1,070 10,233 No significant changes to identifiable assets by segment occurred during the three months ended July 1, 2018 . |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Jul. 01, 2018 | |
Revenue [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table disaggregates external customer net sales by major revenue stream for the three months ended July 1, 2018: (In thousands) Industrial Water Health and Total Bulk / Distributed products (1) $ 13,725 $ 5,884 $ 30,179 $ 49,788 Specialty / Manufactured products (2) 58,842 34,525 4,055 97,422 Other $ 1,451 $ 460 $ 679 2,590 Total external customer sales $ 74,018 $ 40,869 $ 34,913 $ 149,800 (1) For our Industrial and Water Treatment segments, this line includes our bulk products that we do not modify in any way, but receive, store, and ship from our facilities, or direct ship to our customers in large quantities. For our Health and Nutrition segment, this line includes our non-manufactured distributed specialty products, which may be sold out of one of our facilities or direct shipped to our customers. (2) For our Industrial and Water Treatment segments, this line includes our non-bulk specialty products that we either manufacture, blend, repackage, resell in their original form, or direct ship to our customers in smaller quantities. For our Health and Nutrition segments, this line includes products manufactured in our facility. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Jul. 01, 2018 | |
Earnings Per Share [Abstract] | |
Summary of basic and diluted EPS | Basic earnings per share (“EPS”) are computed by dividing net earnings by the weighted-average number of common shares outstanding. Diluted EPS includes the incremental shares assumed to be issued as performance units and restricted stock. Basic and diluted EPS were calculated using the following: Three Months Ended July 1, July 2, Weighted-average common shares outstanding—basic 10,648,226 10,582,989 Dilutive impact of performance units and restricted stock 33,834 32,703 Weighted-average common shares outstanding—diluted 10,682,060 10,615,692 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jul. 01, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Liabilities Measured on Recurring Basis [Table Text Block] | The following table summarizes the balances of assets measured at fair value on a recurring basis as of July 1, 2018 and April 1, 2018 . 0 July 1, 2018 (In thousands) Level 1 Level 2 Level 3 Interest rate swap — 855 — Deferred compensation plan assets $ 2,607 — — April 1, 2018 (In thousands) Level 1 Level 2 Level 3 Interest rate swap — $ 819 — Deferred compensation plan assets 1,392 $ — — |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jul. 01, 2018 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories at July 1, 2018 and April 1, 2018 consisted of the following: July 1, April 1, (In thousands) Inventory (FIFO basis) $ 72,284 $ 65,322 LIFO reserve (5,917 ) (5,586 ) Net inventory $ 66,367 $ 59,736 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Jul. 01, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets and goodwill | A summary of our intangible assets as of July 1, 2018 and April 1, 2018 is as follows: July 1, 2018 April 1, 2018 (In thousands) Gross Amount Accumulated Amortization Net Gross Amount Accumulated Amortization Net Finite-life intangible assets Customer relationships $ 78,383 $ (13,542 ) $ 64,841 $ 78,383 $ (12,419 ) $ 65,964 Trademarks and trade names 6,045 (2,664 ) 3,381 6,045 (2,490 ) 3,555 Other finite-life intangible assets 3,648 (3,323 ) 325 3,648 (3,215 ) 433 Total finite-life intangible assets 88,076 (19,529 ) 68,547 88,076 (18,124 ) 69,952 Indefinite-life intangible assets 1,227 — 1,227 1,227 — 1,227 Total intangible assets $ 89,303 $ (19,529 ) $ 69,774 $ 89,303 $ (18,124 ) $ 71,179 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Jul. 01, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Debt at July 1, 2018 and April 1, 2018 consisted of the following: July 1, April 1, (In thousands) Senior secured term loan $ 82,500 $ 85,000 Senior secured revolving loan 18,500 16,000 Total debt 101,000 101,000 Less: unamortized debt issuance costs (340 ) (374 ) Total debt, net of debt issuance costs 100,660 100,626 Less: current portion of long-term debt (9,864 ) (9,864 ) Total long-term debt $ 90,796 $ 90,762 |
Share Based Compensation (Table
Share Based Compensation (Tables) | 3 Months Ended |
Jul. 01, 2018 | |
Performance-Based Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of performance-based restricted stock units | The following table represents the restricted stock activity for the three months ended July 1, 2018 : Shares Weighted- Average Grant Date Fair Value Unvested at beginning of period 51,143 $ 45.39 Granted 7,818 31.35 Vested (24,567 ) 43.10 Unvested at end of period 34,394 $ 36.70 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Jul. 01, 2018 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | (In thousands) Industrial Water Treatment Health and Nutrition Total Three months ended July 1, 2018: Sales $ 74,018 $ 40,869 $ 34,913 $ 149,800 Gross profit 10,443 11,437 6,577 28,457 Selling, general, and administrative expenses 5,487 5,101 4,391 14,979 Operating income 4,956 6,336 2,186 13,478 Three months ended July 2, 2017: Sales $ 64,027 $ 38,224 $ 31,480 $ 133,731 Gross profit 8,973 11,203 5,823 25,999 Selling, general, and administrative expenses 5,756 5,257 4,753 15,766 Operating income 3,217 5,946 1,070 10,233 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 01, 2018 | Jul. 02, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 149,800 | $ 133,731 |
Bulk / Distributed products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 49,788 | |
Specialty / Manufactured products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 97,422 | |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 2,590 | |
Industrial [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 74,018 | 64,027 |
Industrial [Member] | Bulk / Distributed products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 13,725 | |
Industrial [Member] | Specialty / Manufactured products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 58,842 | |
Industrial [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,451 | |
Water Treatment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 40,869 | 38,224 |
Water Treatment [Member] | Bulk / Distributed products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 5,884 | |
Water Treatment [Member] | Specialty / Manufactured products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 34,525 | |
Water Treatment [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 460 | |
Health and Nutrition [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 34,913 | $ 31,480 |
Health and Nutrition [Member] | Bulk / Distributed products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 30,179 | |
Health and Nutrition [Member] | Specialty / Manufactured products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 4,055 | |
Health and Nutrition [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 679 |
Earnings per Share (Details)
Earnings per Share (Details) - shares | 3 Months Ended | |
Jul. 01, 2018 | Jul. 02, 2017 | |
Summary of basic and diluted EPS | ||
Weighted-average common shares outstanding—basic | 10,648,226 | 10,582,989 |
Dilutive impact of performance units and restricted stock | 33,834 | 32,703 |
Weighted-average common shares outstanding—diluted | 10,682,060 | 10,615,692 |
Earnings per Share (Details Tex
Earnings per Share (Details Textual) - shares | 3 Months Ended | |
Jul. 01, 2018 | Jul. 02, 2017 | |
Earnings Per Share [Abstract] | ||
Shares or stock options excluded from the calculation of diluted EPS | 0 | 0 |
Derivative Instruments (Details
Derivative Instruments (Details) - Interest Rate Swap [Member] - USD ($) $ in Thousands | 3 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Apr. 01, 2018 | |
Derivative [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | $ 27 | $ (68) | |
Interest rate swap | 855 | $ 819 | |
Debt Instrument, Redemption, Period One [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 40,000 | ||
Debt Instrument, Redemption, Period Two [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 30,000 | ||
Debt Instrument, Redemption, Period Three [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 20,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jul. 01, 2018 | Apr. 01, 2018 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | $ 2,607 | $ 1,392 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 0 | 0 |
Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap | 855 | 819 |
Interest Rate Swap [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap | 0 | 0 |
Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap | 855 | 819 |
Interest Rate Swap [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap | $ 0 | $ 0 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jul. 01, 2018 | Apr. 01, 2018 |
Summary of Inventories | ||
Inventory (FIFO basis) | $ 72,284 | $ 65,322 |
LIFO reserve | (5,917) | (5,586) |
Net inventory | $ 66,367 | $ 59,736 |
Inventories (Details Textual)
Inventories (Details Textual) - USD ($) $ in Millions | 3 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Apr. 01, 2018 | |
Inventory Disclosure [Abstract] | |||
Finished goods (LIFO basis) | $ 49.5 | $ 44 | |
Increase (decrease) in LIFO reserve | $ 0.3 | $ 0.5 |
Goodwill and Intangible Asset35
Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands | Jul. 01, 2018 | Apr. 01, 2018 |
Goodwill [Line Items] | ||
Goodwill | $ 58,440 | $ 58,440 |
Health and Nutrition [Member] | ||
Goodwill [Line Items] | ||
Goodwill | $ 44,900 |
Goodwill and Intangible Asset36
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Jul. 01, 2018 | Apr. 01, 2018 |
Summary of Finite-Lived Intangible Assets [Line Items] | ||
Finite-life intangible assets, Gross Carrying Amount | $ 88,076 | $ 88,076 |
Finite-life intangible assets, Accumulated Amortization | (19,529) | (18,124) |
Total finite-life intangible assets, Net | 68,547 | 69,952 |
Indefinite-life intangible assets gross | 1,227 | 1,227 |
Indefinite-life intangible assets, Accumulated Amortization | 0 | 0 |
Indefinite-life intangible assets | 1,227 | 1,227 |
Total Intangible Assets, Gross | 89,303 | 89,303 |
Total intangible assets, net | 69,774 | 71,179 |
Customer Relationships [Member] | ||
Summary of Finite-Lived Intangible Assets [Line Items] | ||
Finite-life intangible assets, Gross Carrying Amount | 78,383 | 78,383 |
Finite-life intangible assets, Accumulated Amortization | (13,542) | (12,419) |
Total finite-life intangible assets, Net | 64,841 | 65,964 |
Trademarks [Member] | ||
Summary of Finite-Lived Intangible Assets [Line Items] | ||
Finite-life intangible assets, Gross Carrying Amount | 6,045 | 6,045 |
Finite-life intangible assets, Accumulated Amortization | (2,664) | (2,490) |
Total finite-life intangible assets, Net | 3,381 | 3,555 |
Other finite-life intangible assets [Member] | ||
Summary of Finite-Lived Intangible Assets [Line Items] | ||
Finite-life intangible assets, Gross Carrying Amount | 3,648 | 3,648 |
Finite-life intangible assets, Accumulated Amortization | (3,323) | (3,215) |
Total finite-life intangible assets, Net | $ 325 | $ 433 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Jul. 01, 2018 | Apr. 01, 2018 |
Debt Instrument [Line Items] | ||
Long-term Debt | $ 101,000 | $ 101,000 |
Less: unamortized debt issuance costs | (340) | (374) |
Total debt, net of debt issuance costs | 100,660 | 100,626 |
Less: current portion of long-term debt | (9,864) | (9,864) |
Total long-term debt | 90,796 | 90,762 |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 82,500 | 85,000 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 18,500 | $ 16,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Jul. 01, 2018 | Jul. 02, 2017 | Apr. 01, 2018 | |
Income Tax [Abstract] | |||
Effective Income Tax Rate Reconciliation, Percent | 27.30% | 38.50% | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ (13.9) | ||
Unrecognized Tax Benefits | $ 0.2 | 0.2 | |
Business Combination, Indemnification Assets, Amount as of Acquisition Date | $ 0.2 | $ 0.2 |
Share Based Compensation (Detai
Share Based Compensation (Details) - Performance-Based Restricted Stock [Member] | 3 Months Ended |
Jul. 01, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Unvested at beginning of period (Shares) | shares | 51,143 |
Granted (Shares) | shares | 7,818 |
Vested (shares) | shares | 24,567 |
Unvested at end of period (Shares) | shares | 34,394 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Beginning Balance, Weighted average grant date fair value (usd per share) | $ / shares | $ 45.39 |
Granted, Weighted average grant date fair value (usd per share) | $ / shares | 31.35 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ / shares | 43.10 |
Ending Balance, Weighted average grant date fair value (usd per share) | $ / shares | $ 36.70 |
Share Based Compensation (Det40
Share Based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Jul. 01, 2018 | Jul. 02, 2017 | |
Performance-Based Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of restricted stock to be issued minimum (shares) | 0 | |
Range of restricted stock to be issued maximum (shares) | 69,936 | |
Vesting period | 2 years | |
Compensation expense | $ 0.3 | $ 0.2 |
Restricted Stock Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year | |
Compensation expense | $ 0.1 | $ 0.1 |
Restricted stock awards outstanding (shares) | 8,484 | |
Restricted stock awards, weighted average exercise price (usd per share) | $ 41.25 |
Share Repurchase Program (Detai
Share Repurchase Program (Details) - shares | 3 Months Ended | |
Jul. 01, 2018 | Jul. 02, 2017 | |
Share Repurchase Program [Abstract] | ||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 300,000 | |
Stock Repurchased During Period, Shares | 0 | 0 |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 112,546 |
Litigation, Commitments and C42
Litigation, Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 01, 2018 | Apr. 01, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Environmental Remediation Expense | $ 0 | $ 0.6 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 01, 2018 | Jul. 02, 2017 | |
Segment Reporting Information [Line Items] | ||
Sales | $ 149,800 | $ 133,731 |
Gross profit | 28,457 | 25,999 |
Selling, general, and administrative expenses | 14,979 | 15,766 |
Operating income | 13,478 | 10,233 |
Industrial [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales | 74,018 | 64,027 |
Gross profit | 10,443 | 8,973 |
Selling, general, and administrative expenses | 5,487 | 5,756 |
Operating income | 4,956 | 3,217 |
Water Treatment [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales | 40,869 | 38,224 |
Gross profit | 11,437 | 11,203 |
Selling, general, and administrative expenses | 5,101 | 5,257 |
Operating income | 6,336 | 5,946 |
Health and Nutrition [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales | 34,913 | 31,480 |
Gross profit | 6,577 | 5,823 |
Selling, general, and administrative expenses | 4,391 | 4,753 |
Operating income | $ 2,186 | $ 1,070 |
Segment Information (Details Te
Segment Information (Details Textual) $ in Millions | 3 Months Ended |
Jul. 01, 2018USD ($)SegmentCustomer | |
Segment Reporting Information [Line Items] | |
Number of reportable segments (segments) | 3 |
Intersegment sales | $ | $ 0 |
Number of operating segments aggregated (segments) | 0 |
Number of customer representing 10 percent or more of revenue (customers) | Customer | 0 |
Quarterly Financial Information, Segment Reporting, Segment Assets, Material Change | 0 |