Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jun. 28, 2014 | Feb. 16, 2015 | |
Entity Registrant Name | TOOTSIE ROLL INDUSTRIES INC | ||
Entity Central Index Key | 98677 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $665,166,000 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Common Stock | |||
Entity Common Stock, Shares Outstanding | 37,237,109 | ||
Class B Common Stock | |||
Entity Common Stock, Shares Outstanding | 22,886,441 |
CONSOLIDATED_STATEMENTS_OF_Ear
CONSOLIDATED STATEMENTS OF Earnings and Retained Earnings (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF Earnings and Retained Earnings | |||
Net product sales | $539,895 | $539,627 | $545,985 |
Rental and royalty revenue | 3,630 | 3,756 | 3,885 |
Total revenue | 543,525 | 543,383 | 549,870 |
Product cost of goods sold | 340,933 | 350,960 | 365,573 |
Rental and royalty cost | 947 | 937 | 976 |
Total costs | 341,880 | 351,897 | 366,549 |
Product gross margin | 198,962 | 188,667 | 180,412 |
Rental and royalty gross margin | 2,683 | 2,819 | 2,909 |
Total gross margin | 201,645 | 191,486 | 183,321 |
Selling, marketing and administrative expenses | 117,722 | 119,133 | 113,842 |
Earnings from operations | 83,923 | 72,353 | 69,479 |
Other income, net | 7,371 | 12,130 | 4,685 |
Earnings before income taxes | 91,294 | 84,483 | 74,164 |
Provision for income taxes | 28,434 | 23,634 | 22,160 |
Net earnings | 62,860 | 60,849 | 52,004 |
Less: Net loss attributable to noncontrolling interests | 438 | ||
Net earnings attributable to Tootsie Roll Industries, Inc. | 63,298 | 60,849 | 52,004 |
Net earnings attributable to Tootsie Roll Industries, Inc. per share (in dollars per share) | $1.05 | $0.99 | $0.84 |
Average number of shares outstanding (in shares) | 60,562 | 61,399 | 62,248 |
Retained earnings at beginning of period | 73,109 | 80,210 | 114,269 |
Net earnings attributable to Tootsie Roll Industries, Inc. | 63,298 | 60,849 | 52,004 |
Cash dividends | -19,199 | -18,922 | -47,729 |
Stock dividends | -52,281 | -49,028 | -38,334 |
Retained earnings at end of period | $64,927 | $73,109 | $80,210 |
CONSOLIDATED_STATEMENTS_OF_Com
CONSOLIDATED STATEMENTS OF Comprehensive Earnings (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF Comprehensive Earnings | |||
Net earnings | $62,860 | $60,849 | $52,004 |
Other comprehensive income (loss), before tax: | |||
Foreign currency translation adjustments | -4,453 | -102 | 1,303 |
Pension and postretirement reclassification adjustment: | |||
Unrealized gains (losses) for the period on postretirement and pension benefits | -2,746 | 20,037 | 1,066 |
Less: reclassification adjustment for (gains) losses to net income | -1,804 | 671 | 1,036 |
Unrealized gains (losses) on postretirement and pension benefits | -4,550 | 20,708 | 2,102 |
Investments: | |||
Unrealized gains (losses) for the period on investments | -606 | 1,091 | 1,980 |
Less: reclassification adjustment for (gains) losses to net income | -2,430 | ||
Unrealized gains (losses) on investments | -606 | -1,339 | 1,980 |
Derivatives: | |||
Unrealized gains (losses) for the period on derivatives | -3,137 | -2,107 | -339 |
Less: reclassification adjustment for (gains) losses to net income | 1,295 | 1,446 | -243 |
Unrealized gains (losses) on derivatives | -1,842 | -661 | -582 |
Total other comprehensive income (loss), before tax | -11,451 | 18,606 | 4,803 |
Income tax benefit (expense) related to items of other comprehensive income | 2,991 | -6,797 | -1,297 |
Total comprehensive earnings | 54,400 | 72,658 | 55,510 |
Comprehensive earnings attributable to noncontrolling interests | 438 | ||
Total comprehensive earnings attributable to Tootsie Roll Industries, Inc. | $54,838 | $72,658 | $55,510 |
CONSOLIDATED_STATEMENTS_OF_Fin
CONSOLIDATED STATEMENTS OF Financial Position (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ||
Cash & cash equivalents | $100,108 | $88,283 |
Investments | 39,450 | 33,572 |
Trade accounts receivable, less allowances of $1,968 and $2,042 | 43,253 | 40,721 |
Other receivables | 3,577 | 4,616 |
Inventories: | ||
Finished goods & work-in-process | 44,549 | 37,012 |
Raw material & supplies | 25,830 | 24,844 |
Prepaid expenses | 6,060 | 5,581 |
Deferred income taxes | 1,794 | 5,482 |
Total current assets | 264,621 | 240,111 |
PROPERTY, PLANT & EQUIPMENT, at cost: | ||
Land | 22,360 | 21,683 |
Buildings | 113,279 | 111,044 |
Machinery & equipment | 350,929 | 340,405 |
Construction in progress | 1,641 | 3,403 |
Property, plant and equipment, gross | 488,209 | 476,535 |
Less-accumulated depreciation | 298,128 | 279,619 |
Net property, plant and equipment | 190,081 | 196,916 |
OTHER ASSETS: | ||
Goodwill | 73,237 | 73,237 |
Trademarks | 175,024 | 175,024 |
Investments | 163,579 | 148,532 |
Split dollar officer life insurance | 33,632 | 40,296 |
Prepaid expenses | 6,927 | 10,260 |
Restricted cash | 1,589 | |
Deferred income taxes | 1,696 | 4,033 |
Total other assets | 455,684 | 451,382 |
Total assets | 910,386 | 888,409 |
CURRENT LIABILITIES: | ||
Accounts payable | 11,641 | 9,153 |
Bank loan | 124 | |
Dividends payable | 4,814 | 4,742 |
Accrued liabilities | 46,482 | 45,580 |
Postretirement health care and life insurance benefits | 328 | 319 |
Income taxes payable | 1,070 | 327 |
Total current liabilities | 64,459 | 60,121 |
NONCURRENT LIABILITIES: | ||
Deferred income taxes | 47,356 | 54,939 |
Bank loans | 694 | |
Postretirement health care and life insurance benefits | 11,983 | 8,857 |
Industrial development bonds | 7,500 | 7,500 |
Liability for uncertain tax positions | 8,584 | 7,167 |
Deferred compensation and other liabilities | 78,674 | 69,520 |
Total noncurrent liabilities | 154,791 | 147,983 |
TOOTSIE ROLL INDUSTRIES, INC. SHAREHOLDERS' EQUITY: | ||
Capital in excess of par value | 599,186 | 572,669 |
Retained earnings | 64,927 | 73,109 |
Accumulated other comprehensive loss | -13,098 | -4,638 |
Treasury stock (at cost)-78 and 76 shares, respectively | -1,992 | -1,992 |
Total Tootsie Roll Industries, Inc. shareholders' equity | 690,809 | 680,305 |
Noncontrolling interests | 327 | |
Total equity | 691,136 | 680,305 |
Total liabilities and shareholders' equity | 910,386 | 888,409 |
Common Stock | ||
TOOTSIE ROLL INDUSTRIES, INC. SHAREHOLDERS' EQUITY: | ||
Common stock, $.69-4/9 par value- 120,000 shares authorized; 37,285 and 37,011, respectively, issued Class B common stock, $.69-4/9 par value- 40,000 shares authorized; 22,887 and 22,256, respectively, issued | 25,892 | 25,702 |
Class B Common Stock | ||
TOOTSIE ROLL INDUSTRIES, INC. SHAREHOLDERS' EQUITY: | ||
Common stock, $.69-4/9 par value- 120,000 shares authorized; 37,285 and 37,011, respectively, issued Class B common stock, $.69-4/9 par value- 40,000 shares authorized; 22,887 and 22,256, respectively, issued | $15,894 | $15,455 |
CONSOLIDATED_STATEMENTS_OF_Fin1
CONSOLIDATED STATEMENTS OF Financial Position (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Trade accounts receivable, allowances | $1,968 | $2,042 |
Treasury stock, shares | 78,000 | 76,000 |
Common Stock | ||
Common stock, par value (in dollars per share) | $0.69 | $0.69 |
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Common stock, shares issued | 37,285,000 | 37,011,000 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $0.69 | $0.69 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 22,887,000 | 22,256,000 |
CONSOLIDATED_STATEMENTS_OF_Cas
CONSOLIDATED STATEMENTS OF Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net earnings | $62,860 | $60,849 | $52,004 |
Adjustments to reconcile net earnings to net cash used in operating activities: | |||
Depreciation and amortization | 20,758 | 20,050 | 19,925 |
Loss on step acquisition | 529 | ||
Impairment of equity method investment | 975 | 850 | |
Loss from equity method investment | 967 | 1,019 | |
Amortization of marketable security premiums | 3,261 | 3,035 | 1,770 |
Changes in operating assets and liabilities: | |||
Accounts receivable | -2,007 | 1,330 | 272 |
Other receivables | 1,289 | 253 | -2,720 |
Inventories | -7,329 | 503 | 9,588 |
Prepaid expenses and other assets | 9,524 | 14,922 | 11,295 |
Accounts payable and accrued liabilities | -1,268 | 418 | 199 |
Income taxes payable and deferred | -1,024 | 68 | 1,369 |
Postretirement health care and life insurance benefits | -1,289 | 2,861 | 2,829 |
Deferred compensation and other liabilities | 3,465 | 3,592 | 3,018 |
Net cash from operating activities | 88,769 | 109,823 | 101,418 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Net cash acquired in step acquisition | 161 | ||
Restricted cash | 224 | ||
Capital expenditures | -10,704 | -15,752 | -8,886 |
Net sales (purchases) of trading securities | -3,567 | -5,500 | -2,994 |
Purchase of available for sale securities | -54,882 | -66,324 | -39,016 |
Sale and maturity of available for sale securities | 38,309 | 39,613 | 10,461 |
Net cash used in investing activities | -30,459 | -47,963 | -40,435 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Shares purchased and retired | -25,020 | -23,143 | -23,803 |
Dividends paid in cash | -19,241 | -14,282 | -52,431 |
Repayment of bank loans | -403 | ||
Net cash used in financing activities | -44,664 | -37,425 | -76,234 |
Effect of exchange rate changes on cash | -1,821 | -14 | 501 |
Increase (decrease) in cash and cash equivalents | 11,825 | 24,421 | -14,750 |
Cash and cash equivalents at beginning of year | 88,283 | 63,862 | 78,612 |
Cash and cash equivalents at end of quarter | 100,108 | 88,283 | 63,862 |
Supplemental cash flow information: | |||
Income taxes paid, net | 26,599 | 24,225 | 21,312 |
Interest paid | 34 | 21 | 31 |
Stock dividend issued | $52,165 | $48,925 | $38,236 |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES: | 12 Months Ended |
Dec. 31, 2014 | |
Significant Accounting Policies | |
Significant Accounting Policies | NOTE 1—SIGNIFICANT ACCOUNTING POLICIES: |
Basis of consolidation: | |
The consolidated financial statements include the accounts of Tootsie Roll Industries, Inc. and its wholly-owned and majority-owned subsidiaries (the Company), which are primarily engaged in the manufacture and sales of candy products. Non-controlling interests relating to majority-owned subsidiaries are reflected in the consolidated financial statements and all significant intercompany transactions have been eliminated. | |
The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Revenue recognition: | |
Products are sold to customers based on accepted purchase orders which include quantity, sales price and other relevant terms of sale. Revenue, net of applicable provisions for discounts, returns, allowances and certain advertising and promotional costs, is recognized when products are delivered to customers and collectability is reasonably assured. Shipping and handling costs of $46,525, $45,367, and $45,072 in 2014, 2013 and 2012, respectively, are included in selling, marketing and administrative expenses. Accounts receivable are unsecured. | |
Cash and cash equivalents: | |
The Company considers temporary cash investments with an original maturity of three months or less to be cash equivalents. | |
Investments: | |
Investments consist of various marketable securities with maturities of generally up to three years. The Company classifies debt and equity securities as either available for sale or trading. Available for sale securities are not actively traded by the Company and are carried at fair value. The Company follows current fair value measurement guidance and unrealized gains and losses on these securities are excluded from earnings and are reported as a separate component of shareholders’ equity, net of applicable taxes, until realized or other-than-temporarily impaired. Trading securities relate to deferred compensation arrangements and are carried at fair value with gains or losses included in other income, net. The Company invests in trading securities to economically hedge changes in its deferred compensation liabilities. | |
The Company regularly reviews its investments to determine whether a decline in fair value below the cost basis is other-than-temporary. If the decline in fair value is judged to be other-than-temporary, the cost basis of the security is written down to fair value and the amount of the write-down is included in other income, net. Further information regarding the fair value of the Company’s investments is included in Note 10 to the Consolidated Financial Statements. | |
Derivative instruments and hedging activities: | |
Authoritative guidance requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of derivative instruments and related gains and losses, and disclosures about credit-risk-related contingent features in derivative agreements. | |
From time to time, the Company enters into commodity futures, commodity options contracts and foreign currency forward contracts. Commodity futures and options are intended and are effective as hedges of market price risks associated with the anticipated purchase of certain raw materials (primarily sugar). Foreign currency forward contracts are intended and are effective as hedges of the Company’s exposure to the variability of cash flows, primarily related to the foreign exchange rate changes of products manufactured in Canada and sold in the United States, and periodic equipment purchases from foreign suppliers denominated in a foreign currency. The Company does not engage in trading or other speculative use of derivative instruments. Further information regarding derivative instruments and hedging activities is included in Note 11 to the Consolidated Financial Statements. | |
Inventories: | |
Inventories are stated at cost, not to exceed market. The cost of substantially all of the Company’s inventories ($65,545 and $58,038 at December 31, 2014 and 2013, respectively) has been determined by the last-in, first-out (LIFO) method. The excess of current cost over LIFO cost of inventories approximates $18,117 and $20,926 at December 31, 2014 and 2013, respectively. The cost of certain foreign inventories ($4,834 and $3,818 at December 31, 2014 and 2013, respectively) has been determined by the first-in, first-out (FIFO) method. Rebates, discounts and other cash consideration received from vendors related to inventory purchases is reflected as a reduction in the cost of the related inventory item, and is therefore reflected in cost of sales when the related inventory item is sold. | |
Property, plant and equipment: | |
Depreciation is computed for financial reporting purposes by use of the straight-line method based on useful lives of 20 to 35 years for buildings and 5 to 20 years for machinery and equipment. Depreciation expense was $20,758, $20,050 and $19,925 in 2014, 2013 and 2012, respectively. | |
Carrying value of long-lived assets: | |
The Company reviews long-lived assets to determine if there are events or circumstances indicating that the amount of the asset reflected in the Company’s balance sheet may not be recoverable. When such indicators are present, the Company compares the carrying value of the long-lived asset, or asset group, to the future undiscounted cash flows of the underlying assets to determine if impairment exists. If applicable, an impairment charge would be recorded to write down the carrying value to its fair value. The determination of fair value involves the use of estimates of future cash flows that involve considerable management judgment and are based upon assumptions about expected future operating performance. The actual cash flows could differ from management’s estimates due to changes in business conditions, operating performance, and economic conditions. No impairment charges of long-lived assets were recorded by the Company during 2014, 2013 and 2012. | |
Postretirement health care benefits: | |
The Company provides certain postretirement health care benefits to corporate office and management employees. The cost of these postretirement benefits is accrued during employees’ working careers. See Note 7 for changes to these benefits and the resulting effects of the negative amendment, as defined by guidance. The Company also provides split dollar life benefits to certain executive officers. The Company records an asset equal to the cumulative insurance premiums paid that will be recovered upon the death of covered employees or earlier under the terms of the plan. No premiums were paid in 2014, 2013 and 2012. Certain split dollar agreements were terminated during 2014 and 2013 which resulted in the full repayment to the Company of all of the cumulative premiums previously paid on these policies. During 2014 and 2013, the Company received $6,496 and $26,477, respectively, of such repayments which were recorded as a reduction in the carrying value of Split Dollar Officer Life Insurance. | |
Goodwill and indefinite-lived intangible assets: | |
In accordance with authoritative guidance, goodwill and intangible assets with indefinite lives are not amortized, but rather tested for impairment at least annually unless certain interim triggering events or circumstances require more frequent testing. All trademarks have been assessed by management to have indefinite lives because they are expected to generate cash flows indefinitely. Management believes that all assumptions used for the impairment tests are consistent with those utilized by market participants performing similar valuations The Company has completed its annual impairment testing of its goodwill and trademarks at December 31 of each of the years presented. No impairments of intangibles, including goodwill were recorded in 2014, 2013 and 2012. | |
With respect to impairment testing of goodwill, the first step compares the reporting unit’s estimated fair value with its carrying value. Projected discounted cash flows are used to determine the fair value of the reporting unit. If the carrying value of a reporting unit’s net assets exceeds its fair value, the second step is applied to measure the difference between the carrying value and implied fair value of goodwill. If the carrying value of goodwill exceeds its implied fair value, the goodwill is considered impaired and reduced to its implied fair value. Non-amortizable intangible assets, trademarks, are tested for impairment by comparing the fair value of each trademark with its carrying value. The fair value of trademarks is determined using discounted cash flows and estimates of royalty rates. If the carrying value exceeds fair value, the trademark is considered impaired and is reduced to fair value. | |
Income taxes: | |
Deferred income taxes are recorded and recognized for future tax effects of temporary differences between financial and income tax reporting. The Company records valuation allowances in situations where the realization of deferred tax assets is not more-likely-than-not. Federal income taxes are provided on the portion of income of foreign subsidiaries that is expected to be remitted to the U.S. and become taxable, but not on the portion that is considered to be permanently reinvested in the foreign subsidiary. | |
Foreign currency translation: | |
The U.S. dollar is used as the functional currency where a substantial portion of the subsidiary’s business is indexed to the U.S. dollar or where its manufactured products are principally sold in the U.S. All other foreign subsidiaries use the local currency as their functional currency. Where the U.S. dollar is used as the functional currency, foreign currency remeasurements are recorded as a charge or credit to other income, net in the statement of earnings. Where the foreign local currency is used as the functional currency, translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss). | |
Equity method investment and majority-owned subsidiaries: | |
The 2013 and 2012 financial results include the Company’s 50% interest in two Spanish companies that was accounted for using the equity method. The Company recorded an increase in its investment to the extent of its share of earnings, and reduced its investment to the extent of losses and dividends received. No dividends were paid in 2013 and 2012. | |
As of December 31, 2013 and 2012, management determined that the carrying value of this equity method investment was impaired as a result of accumulated losses from operations and review of future expectations. The Company recorded a pre-tax impairment charge of $975 and $850 in 2013 and 2012, respectively. The fair value was assessed primarily using the discounted cash flow method and liquidation valuation. The key inputs to this method include projections of future cash flows, determinations of appropriate discount rates, and other assumptions of the equity method investee which are considered reasonable and inherent in the discounted cash flow analysis. The Company’s carrying value of this investment at December 31, 2013 was not significant. | |
During first quarter 2014, the Company gained operating control of its two 50% owned Spanish companies when Company employee representatives assumed all positions on their boards of directors. This was considered a step acquisition, whereby the Company remeasured the previously held investment to fair value in first quarter 2014. As a result, the Company’s first quarter 2014 net earnings include a net loss of $529, including an additional income tax provision of $2,350 relating to deferred income taxes. During 2014, the Company further increased its control and ownership to 83% by subscribing to additional common shares of these Spanish subsidiaries for approximately $1,400 ($1,200 was paid in 2014, and the balance will be paid in 2015). The accompanying consolidated financial statements for the year ended December 31, 2014 include these Spanish companies and related minority interests. These Spanish subsidiaries are not material to the Company’s consolidated financial statements. | |
Restricted cash: | |
Restricted cash comprises certain cash deposits of the Company’s majority-owned Spanish subsidiaries with international banks that are pledged as collateral for letters of credit and bank borrowings. | |
VEBA trust: | |
During fourth quarter 2014 and 2013, the Company contributed $1,000 and $15,000 to a VEBA trust, managed and controlled by the Company, to fund the estimated future costs of certain employee health, welfare and other benefits. The Company is using these funds to pay the actual cost of such benefits through 2017. At December 31, 2014 and 2013, the VEBA trust held $10,845 and $13,991, respectively, of aggregate cash and cash equivalents. This asset value is included in prepaid expenses and long-term other assets in the Company’s Consolidated Statement of Financial Position. These assets are categorized as Level 1 within the fair value hierarchy. | |
Bank loans: | |
Long term bank loans comprise borrowings by the Company’s majority-owned Spanish subsidiaries which are held by international banks. The average weighted interest rate in 2014 was of 3.0% and maturity dates range from 1 to 4 years. Short term bank loans also relate to the Company’s majority-owned Spanish subsidiaries. | |
Comprehensive earnings: | |
Comprehensive earnings includes net earnings, foreign currency translation adjustments and unrealized gains/losses on commodity and/or foreign currency hedging contracts, available for sale securities and certain postretirement benefit obligations. | |
Earnings per share: | |
A dual presentation of basic and diluted earnings per share is not required due to the lack of potentially dilutive securities under the Company’s simple capital structure. Therefore, all earnings per share amounts represent basic earnings per share. | |
The Class B Common Stock has essentially the same rights as Common Stock, except that each share of Class B Common Stock has ten votes per share (compared to one vote per share of Common Stock), is not traded on any exchange, is restricted as to transfer and is convertible on a share-for-share basis, at any time and at no cost to the holders, into shares of Common Stock which are traded on the New York Stock Exchange. | |
Use of estimates: | |
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported. Estimates are used when accounting for sales discounts, allowances and incentives, product liabilities, assets recorded at fair value, income taxes, depreciation, amortization, employee benefits, contingencies and intangible asset and liability valuations. Actual results may or may not differ from those estimates. | |
Recent accounting pronouncements: | |
In August 2014, the FASB issued ASU 2014-15 which provides guidance about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. This guidance will be effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. We do not expect the adoption of this guidance to have a significant impact on our condensed consolidated financial statements. | |
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09 that introduces a new five-step revenue recognition model in which an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This standard is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently evaluating the new guidance to determine the impact it may have on the condensed consolidated financial statements. | |
In April 2014, the FASB issued ASU 2014-08, which includes amendments that change the requirements for reporting discontinued operations. The new guidance requires that the disposal of a component of an entity be reported as discontinued operations only if the action represents a strategic shift that will have a major effect on an entity’s operations and financial results, and would require expanded disclosures. This guidance will be effective beginning in the first quarter 2015. We do not expect the adoption of this guidance to have a significant impact on the condensed consolidated financial statements. | |
ACCRUED_LIABILITIES
ACCRUED LIABILITIES: | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
ACCRUED LIABILITIES: | ||||||||
ACCRUED LIABILITIES: | NOTE 2—ACCRUED LIABILITIES: | |||||||
Accrued liabilities are comprised of the following: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Compensation | $ | 9,788 | $ | 9,445 | ||||
Other employee benefits | 7,185 | 7,825 | ||||||
Taxes, other than income | 3,284 | 2,776 | ||||||
Advertising and promotions | 19,805 | 19,133 | ||||||
Other | 6,420 | 6,401 | ||||||
$ | 46,482 | $ | 45,580 | |||||
INDUSTRIAL_DEVELOPMENT_BONDS
INDUSTRIAL DEVELOPMENT BONDS: | 12 Months Ended |
Dec. 31, 2014 | |
INDUSTRIAL DEVELOPMENT BONDS: | |
INDUSTRIAL DEVELOPMENT BONDS: | NOTE 3—INDUSTRIAL DEVELOPMENT BONDS: |
Industrial development bonds are due in 2027. The average floating interest rate, which is reset weekly, was 0.1% and 0.2% in 2014 and 2013, respectively. See Note 10 to the Consolidated Financial Statements for fair value disclosures. | |
INCOME_TAXES
INCOME TAXES: | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Taxes | |||||||||||
Income Taxes | NOTE 4—INCOME TAXES: | ||||||||||
The domestic and foreign components of pretax income are as follows: | |||||||||||
2014 | 2013 | 2012 | |||||||||
Domestic | $ | 81,255 | $ | 73,362 | $ | 64,173 | |||||
Foreign | 10,039 | 11,121 | 9,991 | ||||||||
$ | 91,294 | $ | 84,483 | $ | 74,164 | ||||||
The provision for income taxes is comprised of the following: | |||||||||||
2014 | 2013 | 2012 | |||||||||
Current: | |||||||||||
Federal | $ | 25,173 | $ | 16,192 | $ | 24,312 | |||||
Foreign | 549 | 219 | 231 | ||||||||
State | 1,538 | 891 | 1,914 | ||||||||
27,260 | 17,302 | 26,457 | |||||||||
Deferred: | |||||||||||
Federal | -172 | 4,286 | -6,857 | ||||||||
Foreign | 2,032 | 1,823 | 1,710 | ||||||||
State | -686 | 223 | 850 | ||||||||
1,174 | 6,332 | -4,297 | |||||||||
$ | 28,434 | $ | 23,634 | $ | 22,160 | ||||||
Significant components of the Company’s net deferred tax liability at year end were as follows: | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Deferred tax assets: | |||||||||||
Accrued customer promotions | $ | 3,219 | $ | 3,156 | |||||||
Deferred compensation | 28,099 | 25,103 | |||||||||
Postretirement benefits | 4,895 | 3,847 | |||||||||
Other accrued expenses | 7,660 | 6,158 | |||||||||
Foreign subsidiary tax loss carry forward | 12,972 | 12,512 | |||||||||
Tax credit carry forward | 1,530 | 1,243 | |||||||||
Realized capital losses | — | 581 | |||||||||
Unrealized capital loss | — | — | |||||||||
58,375 | 52,600 | ||||||||||
Valuation allowance | -2,478 | -957 | |||||||||
Total deferred tax assets | $ | 55,897 | $ | 51,643 | |||||||
Deferred tax liabilities: | |||||||||||
Depreciation | $ | 31,520 | $ | 33,129 | |||||||
Deductible goodwill and trademarks | 43,960 | 42,073 | |||||||||
Accrued export company commissions | 5,555 | 5,391 | |||||||||
Employee benefit plans | 3,907 | 5,100 | |||||||||
Inventory reserves | 3,422 | 1,646 | |||||||||
Prepaid insurance | 867 | 785 | |||||||||
Unrealized capital gain | 2,364 | 709 | |||||||||
Deferred gain on sale of real estate | 8,168 | 8,234 | |||||||||
Total deferred tax liabilities | $ | 99,763 | $ | 97,067 | |||||||
Net deferred tax liability | $ | 43,866 | $ | 45,424 | |||||||
At December 31, 2014, the Company has recognized $386 of benefits related to its Mexican subsidiary tax credit carry-forwards. The carry-forward credits expire in 2017. A valuation allowance has been established for the carry-forward losses to reduce the future income tax benefits to amounts expected to be realized. The Company has also recognized $1,144 of benefits related to state tax credit carry-forwards. The state credit carry-forward expires in 2021. The Company expects that these state credit carry-forwards will be utilized before their expiration. | |||||||||||
At December 31, 2014, the tax benefits of the Company’s Canadian subsidiary tax loss carry-forwards expiring by year are as follows: $289 in 2027, $5,767 in 2028, $4,104 in 2029 and $720 in 2031. The Company expects that these carry-forwards will be realized before their expiration. | |||||||||||
At December 31, 2014, the amounts of the Company’s Spanish subsidiary loss carry-forwards expiring by year are as follows: $304 in 2026, $64 in 2027, $223 in 2028, $110 in 2029, $341 in 2030, $445 in 2031 and $605 in 2032. A full valuation allowance has been provided for these Spanish loss carry-forwards as the Company expects that the losses will not be utilized before their expiration. | |||||||||||
The effective income tax rate differs from the statutory rate as follows: | |||||||||||
2014 | 2013 | 2012 | |||||||||
U.S. statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | |||||
State income taxes, net | 1.0 | 1.0 | 1.1 | ||||||||
Exempt municipal bond interest | -0.5 | -0.4 | -0.5 | ||||||||
Foreign tax rates | -1.5 | -2 | -1.6 | ||||||||
Qualified domestic production activities deduction | -2.8 | -2.2 | -3.1 | ||||||||
Tax credits receivable | -0.6 | -0.9 | -0.9 | ||||||||
Adjustment of deferred tax balances | 1.9 | -1.1 | -0.5 | ||||||||
Reserve for uncertain tax benefits | — | -0.7 | -0.3 | ||||||||
Other, net | -1.4 | -0.7 | 0.7 | ||||||||
Effective income tax rate | 31.1 | % | 28.0 | % | 29.9 | % | |||||
The Company has not provided for U.S. federal or foreign withholding taxes on $5,393 and $10,988 of foreign subsidiaries’ undistributed earnings as of December 31, 2014 and December 31, 2013, respectively, because such earnings are considered to be permanently reinvested. The Company estimates that the federal income tax liability on such remittances would approximate 30%. This foreign subsidiary holds $15,986 and $11,674 of cash and short term investments as of December 31, 2014 and 2013, respectively. | |||||||||||
At December 31, 2014 and 2013, the Company had unrecognized tax benefits of $6,993 and $6,010, respectively. Included in this balance is $4,805 and $3,539, respectively, of unrecognized tax benefits that, if recognized, would favorably affect the annual effective income tax rate. As of December 31, 2014 and 2013, $1,591 and $1,157, respectively, of interest and penalties were included in the liability for uncertain tax positions. | |||||||||||
A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits is as follows: | |||||||||||
2014 | 2013 | 2012 | |||||||||
Unrecognized tax benefits at January 1 | $ | 6,010 | $ | 6,677 | $ | 6,804 | |||||
Increases in tax positions for the current year | 1,827 | 1,163 | 727 | ||||||||
Increases in tax positions for new uncertain tax position | 609 | — | — | ||||||||
Reductions in tax positions for lapse of statute of limitations | -1,050 | -867 | -854 | ||||||||
Reductions in tax positions relating to settlements with taxing authorities | -403 | -140 | — | ||||||||
Reductions in tax positions for effective settlements | — | -823 | — | ||||||||
Unrecognized tax benefits at December 31 | $ | 6,993 | $ | 6,010 | $ | 6,677 | |||||
The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes on the Consolidated Statements of Earnings and Retained Earnings. | |||||||||||
The Company is subject to taxation in the U.S. and various state and foreign jurisdictions. The Company remains subject to examination by U.S. federal and state and foreign tax authorities for the years 2011 through 2013. With few exceptions, the Company is no longer subject to examinations by tax authorities for the years 2010 and prior. | |||||||||||
The Company is currently subject to a federal income tax examination of tax years 2011 and 2012. The Company’s Canadian subsidiary is currently subject to examination by the Canada Revenue Agency for tax years 2005 and 2007. The Company’s Spanish subsidiaries are currently subject to a court hearing relating to a tax examination by the Spanish tax authorities. In addition, the Company is currently subject to various state tax examinations. Although the Company is unable to determine the ultimate outcome of the ongoing examinations and court hearing, the Company believes that its liability for uncertain tax positions relating to these jurisdictions for such years is adequate. | |||||||||||
SHARE_CAPITAL_AND_CAPITAL_IN_E
SHARE CAPITAL AND CAPITAL IN EXCESS OF PAR VALUE: | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
SHARE CAPITAL AND CAPITAL IN EXCESS OF PAR VALUE: | ||||||||||||||||||||
SHARE CAPITAL AND CAPITAL IN EXCESS OF PAR VALUE: | NOTE 5—SHARE CAPITAL AND CAPITAL IN EXCESS OF PAR VALUE: | |||||||||||||||||||
Capital in | ||||||||||||||||||||
Class B | Excess | |||||||||||||||||||
Common Stock | Common Stock | Treasury Stock | of Par | |||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Value | ||||||||||||||
(000’s) | (000’s) | (000’s) | ||||||||||||||||||
Balance at January 1, 2012 | 36,479 | $ | 25,333 | 21,025 | $ | 14,601 | 71 | $ | -1,992 | $ | 533,677 | |||||||||
Issuance of 3% stock dividend | 1,085 | 753 | 631 | 437 | 2 | — | 37,046 | |||||||||||||
Conversion of Class B common shares to common shares | 29 | 20 | -29 | -20 | — | — | — | |||||||||||||
Purchase and retirement of common shares | -944 | -656 | — | — | — | — | -23,147 | |||||||||||||
Balance at December 31, 2012 | 36,649 | 25,450 | 21,627 | 15,018 | 73 | -1,992 | 547,576 | |||||||||||||
Issuance of 3% stock dividend | 1,095 | 761 | 648 | 450 | 3 | — | 47,714 | |||||||||||||
Conversion of Class B common shares to common shares | 19 | 13 | -19 | -13 | — | — | — | |||||||||||||
Purchase and retirement of common shares | -752 | -522 | — | — | — | — | -22,621 | |||||||||||||
Balance at December 31, 2013 | 37,011 | 25,702 | 22,256 | 15,455 | 76 | -1,992 | 572,669 | |||||||||||||
Issuance of 3% stock dividend | 1,099 | 763 | 667 | 464 | 2 | — | 50,939 | |||||||||||||
Conversion of Class B common shares to common shares | 36 | 25 | -36 | -25 | — | — | — | |||||||||||||
Purchase and retirement of common shares | -861 | -598 | — | — | — | — | -24,422 | |||||||||||||
Balance at December 31, 2014 | 37,285 | $ | 25,892 | 22,887 | $ | 15,894 | 78 | $ | -1,992 | $ | 599,186 | |||||||||
Average shares outstanding and all per share amounts included in the financial statements and notes thereto have been adjusted retroactively to reflect annual three percent stock dividends. | ||||||||||||||||||||
While the Company does not have a formal or publicly announced Company Common Stock purchase program, the Company’s board of directors periodically authorizes a dollar amount for such share purchases. | ||||||||||||||||||||
Based upon this policy, shares were purchased and retired as follows: | ||||||||||||||||||||
Total Number of Shares | ||||||||||||||||||||
Year | Purchased (000’s) | Average Price Paid Per Share | ||||||||||||||||||
2014 | 861 | $ | 29.02 | |||||||||||||||||
2013 | 752 | $ | 30.73 | |||||||||||||||||
2012 | 944 | $ | 25.16 | |||||||||||||||||
OTHER_INCOME_NET
OTHER INCOME, NET: | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
OTHER INCOME, NET: | |||||||||||
OTHER INCOME, NET: | NOTE 6—OTHER INCOME, NET: | ||||||||||
Other income, net is comprised of the following: | |||||||||||
2014 | 2013 | 2012 | |||||||||
Interest and dividend income | $ | 1,582 | $ | 1,445 | $ | 1,369 | |||||
Gains on trading securities relating to deferred compensation plans | 4,901 | 10,588 | 4,616 | ||||||||
Interest expense | -99 | -92 | -137 | ||||||||
Pretax gain on step acquisition | 1,821 | — | — | ||||||||
Impairment of equity investment | — | -975 | -850 | ||||||||
Equity method investment loss | — | -967 | -1,019 | ||||||||
Foreign exchange gains (losses) | -861 | -790 | 442 | ||||||||
Capital gains (losses) | -219 | 2,576 | -59 | ||||||||
Miscellaneous, net | 246 | 345 | 323 | ||||||||
$ | 7,371 | $ | 12,130 | $ | 4,685 | ||||||
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS: | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Pension Plans | |||||||||||
Pension Plans | NOTE 7—EMPLOYEE BENEFIT PLANS: | ||||||||||
Pension plans: | |||||||||||
The Company sponsors defined contribution pension plans covering certain non-union employees with over one year of credited service. The Company’s policy is to fund pension costs accrued based on compensation levels. Total pension expense for 2014, 2013 and 2012 approximated $4,391, $4,437 and $4,327, respectively. The Company also maintains certain profit sharing and retirement savings-investment plans. Company contributions in 2014, 2013 and 2012 to these plans were $1,117, $1,121 and $1,107, respectively. | |||||||||||
The Company also contributes to a multi-employer defined benefit pension plan for certain of its union employees under a collective bargaining agreement which is currently under negotiation, as follows: | |||||||||||
Plan name: Bakery and Confectionery Union and Industry International Pension Fund | |||||||||||
Employer Identification Number and plan number: 52-6118572, plan number 001 | |||||||||||
Funded Status as of the most recent year available: 66.41% funded as of January 1, 2013 | |||||||||||
The Company’s contributions to such plan: $2,588, $2,231 and $2,131 in 2014, 2013 and 2012, respectively | |||||||||||
Plan status: Critical as of December 31, 2013 | |||||||||||
Beginning in 2012, the Company received notices from the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BC&T) Pension Plan (Plan), a multi-employer defined benefit pension plan for certain Company union employees. The notices indicated that the Plan’s actuary certified the Plan to be in critical status, the “Red Zone”, as defined by the Pension Protection Act (PPA) and the Pension Benefit Guaranty Corporation (PBGC), and that a plan of rehabilitation was adopted by the trustees of the Plan in fourth quarter 2012. The rehabilitation plan, which continues, requires that employer contributions include 5% compounded annual surcharge increases each year for an unspecified period of time beginning January 2013 (in addition to the 5% interim surcharge initiated in June 2012) as well as certain plan benefit reductions. Under the plan of rehabilitation, the Plan is projected to emerge from critical status sometime beyond a 30 year projection period. In the event that a plan does not have the financial resources to ultimately pay benefits at a level specified by law, then it must apply to the PBGC for government financial assistance. The Trustees have advised that neither the PPA nor regulatory guidance currently defines the rehabilitation standards for a plan that is not designed to emerge from critical status within the prescribed 10-year rehabilitation period. Recently enacted legislation (Multiemployer Pension Reform Act of 2014) may also affect the future of this Plan. | |||||||||||
The Company was previously advised by the Plan that if the Company had withdrawn from the Plan during 2012 its estimated withdrawal liability would have been $37,200. The Company was recently advised by the Plan that its withdrawal liability would have been $56,400 if it had withdrawn from the Plan during 2014. The increase from 2012 to 2014 principally reflects changes in key actuarial assumptions, principally the effects of a lower interest rates proscribed by PBGC which were partially used to determine the present value of vested benefits, and a change to a more conservative mortality table. Should the Company actually withdraw from the Plan at a future date, a withdrawal liability, which could be higher than the above discussed amounts, could be payable to the Plan. | |||||||||||
The Company’s existing labor contract with its BC&T local union commits the Company’s participation in this Plan through third quarter 2017. Pension expense, including surcharges, for the BC&T Plan for 2014 and 2013 was $2,588 and $2,231, respectively. The aforementioned expense includes surcharge increases of $342 and $242 in 2014 and 2013, respectively, related to the contribution increases required under the plan of rehabilitation. The Company is currently unable to determine the ultimate outcome of the above discussed matter and therefore, is unable to determine the effects on its consolidated financial statements, but, the ultimate outcome could be material to its consolidated results of operations in one or more future periods. | |||||||||||
Deferred compensation: | |||||||||||
The Company sponsors three deferred compensation plans for selected executives and other employees: (i) the Excess Benefit Plan, which restores retirement benefits lost due to IRS limitations on contributions to tax-qualified plans, (ii) the Supplemental Plan, which allows eligible employees to defer the receipt of eligible compensation until designated future dates and (iii) the Career Achievement Plan, which provides a deferred annual incentive award to selected executives. Participants in these plans earn a return on amounts due them based on several investment options, which mirror returns on underlying investments (primarily mutual funds). The Company economically hedges its obligations under the plans by investing in the actual underlying investments. These investments are classified as trading securities and are carried at fair value. At December 31, 2014 and 2013, these investments totaled $71,682 and $63,215, respectively. All gains and losses and related investment income from these investments, which are recorded in other income, net, are equally offset by corresponding increases and decreases in the Company’s deferred compensation liabilities. | |||||||||||
Postretirement health care benefit plans: | |||||||||||
During fourth quarter 2013, the Company restructured and amended its post-retirement health benefits plan provided to corporate office and management employees. These changes resulted in a negative plan amendment, as defined by accounting guidance, resulting in a $10,425 reduction in the Company’s benefit obligation as of December 31, 2013. The plan changes generally limited future annual cost increases in health benefits to 3%, restricted this benefit to current employees with long-term service with the Company, eliminated the Company provided life insurance benefit and required retirees to pay the full cost of life insurance, and eliminated all post-retirement benefits for future employees effective April 1, 2014. Post-retirement benefits liabilities (as amended) were $12,311 and $9,176 at December 31, 2014 and 2013, respectively. The aforementioned increase reflects actuarial losses relating to an 86 basis point decrease in the discount rate (3.83% discount rate used at December 31, 2014) which generally reflects lower market interest rates, and an update of the mortality table based on the Society of Actuaries’ research that indicates that retirees are living longer. | |||||||||||
Amounts recognized in accumulated other comprehensive loss (pre-tax) at December 31, 2014 are as follows: | |||||||||||
Prior service credit | $ | -9,449 | |||||||||
Net actuarial loss | -892 | ||||||||||
Net amount recognized in accumulated other comprehensive (gain) loss | $ | -10,341 | |||||||||
The estimated actuarial loss (gain) and prior service credit (gain) to be amortized from accumulated other comprehensive loss (gain) into net periodic benefit cost during 2015 are $(101) and $(1,352), respectively. | |||||||||||
The changes in the accumulated postretirement benefit obligation at December 31, 2014 and 2013 consist of the following: | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Benefit obligation, beginning of year | $ | 9,176 | $ | 27,381 | |||||||
Service cost | 342 | 1,036 | |||||||||
Interest cost | 423 | 1,060 | |||||||||
Plan amendments | — | -10,425 | |||||||||
Actuarial (gain)/loss | 2,611 | -9,734 | |||||||||
Benefits paid | -241 | -142 | |||||||||
Benefit obligation, end of year | $ | 12,311 | $ | 9,176 | |||||||
Net periodic postretirement benefit cost included the following components: | |||||||||||
2014 | 2013 | 2012 | |||||||||
Service cost—benefits attributed to service during the period | $ | 342 | $ | 1,036 | $ | 1,034 | |||||
Interest cost on the accumulated postretirement benefit obligation | 423 | 1,060 | 1,113 | ||||||||
Net amortization | -1,804 | 671 | 1,036 | ||||||||
Net periodic postretirement benefit cost (income) | $ | -1,039 | $ | 2,767 | $ | 3,183 | |||||
The Company estimates future benefit payments will be $328, $367, $412, $451 and $501 in 2015 through 2019, respectively, and a total of $3,119 in 2020 through 2024. As a result of the plan changes, the Company will no longer qualify for the Medicare Part D retiree drugs subsidy which have historically not been significant. | |||||||||||
COMMITMENTS
COMMITMENTS: | 12 Months Ended |
Dec. 31, 2014 | |
COMMITMENTS: | |
COMMITMENTS: | NOTE 8—COMMITMENTS: |
Rental expense aggregated $749, $793 and $967 in 2014, 2013 and 2012, respectively. | |
Future operating lease commitments are not significant. | |
SEGMENT_AND_GEOGRAPHIC_INFORMA
SEGMENT AND GEOGRAPHIC INFORMATION: | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
SEGMENT AND GEOGRAPHIC INFORMATION: | |||||||||||
SEGMENT AND GEOGRAPHIC INFORMATION: | NOTE 9—SEGMENT AND GEOGRAPHIC INFORMATION: | ||||||||||
The Company operates as a single reportable segment encompassing the manufacture and sale of confectionery products. Its principal manufacturing operations are located in the United States and Canada, and its principal market is the United States. The Company also manufactures and sells confectionery products in Mexico, and exports products to Canada and other countries worldwide. | |||||||||||
The following geographic data includes net product sales summarized on the basis of the customer location and long-lived assets based on their physical location: | |||||||||||
2014 | 2013 | 2012 | |||||||||
Net product sales: | |||||||||||
United States | $ | 488,795 | $ | 495,082 | $ | 499,660 | |||||
Canada and Other | 51,100 | 44,545 | 46,325 | ||||||||
$ | 539,895 | $ | 539,627 | $ | 545,985 | ||||||
Long-lived assets: | |||||||||||
United States | $ | 153,444 | $ | 160,099 | $ | 161,504 | |||||
Canada and Other | 36,637 | 36,817 | 39,786 | ||||||||
$ | 190,081 | $ | 196,916 | $ | 201,290 | ||||||
Sales revenues from Wal-Mart Stores, Inc. aggregated approximately 23.7%, 23.8%, and 23.5% of net product sales during the years ended December 31, 2014, 2013 and 2012, respectively. Some of the aforementioned sales to Wal-Mart are sold to McLane Company, a large national grocery wholesaler, which services and delivers certain of the Company products to Wal-Mart and other retailers in the U.S.A. Net product sales revenues from McLane, which includes these Wal-Mart sales as well as sales and deliveries to other Company customers, were 15.3% in 2014 and 15.1% in 2013; such revenues from McLane were less than 10% in 2012. | |||||||||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS: | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Fair Value Measurements | NOTE 10—FAIR VALUE MEASUREMENTS: | ||||||||||||||||
Current accounting guidance defines fair value as the price that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Guidance requires disclosure of the extent to which fair value is used to measure financial assets and liabilities, the inputs utilized in calculating valuation measurements, and the effect of the measurement of significant unobservable inputs on earnings, or changes in net assets, as of the measurement date. Guidance establishes a three-level valuation hierarchy based upon the transparency of inputs utilized in the measurement and valuation of financial assets or liabilities as of the measurement date. Level 1 inputs include quoted prices for identical instruments and are the most observable. Level 2 inputs include quoted prices for similar assets and observable inputs such as interest rates, foreign currency exchange rates, commodity rates and yield curves. Level 3 inputs are not observable in the market and include management’s own judgments about the assumptions market participants would use in pricing the asset or liability. The use of observable and unobservable inputs is reflected in the hierarchy assessment disclosed in the table below. | |||||||||||||||||
As of December 31, 2014 and 2013, the Company held certain financial assets that are required to be measured at fair value on a recurring basis. These include derivative hedging instruments related to the foreign currency forward contracts and purchase of certain raw materials, investments in trading securities and available for sale securities. The Company’s available for sale and trading securities principally consist of municipal bonds and mutual funds that are publicly traded. | |||||||||||||||||
The following tables present information about the Company’s financial assets and liabilities measured at fair value as of December 31, 2014 and 2013, and indicate the fair value hierarchy and the valuation techniques utilized by the Company to determine such fair value: | |||||||||||||||||
Estimated Fair Value December 31, 2014 | |||||||||||||||||
Total | Input Levels Used | ||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||
Cash and equivalents | $ | 100,108 | $ | 100,108 | $ | — | $ | — | |||||||||
Available for sale securities | 131,347 | 2,446 | 128,901 | — | |||||||||||||
Foreign currency forward contracts | -1,939 | — | -1,939 | — | |||||||||||||
Commodity futures contracts, net | -737 | -737 | — | — | |||||||||||||
Trading securities | 71,682 | 71,682 | — | — | |||||||||||||
Total assets measured at fair value | $ | 300,461 | $ | 173,499 | $ | 126,962 | $ | — | |||||||||
Estimated Fair Value December 31, 2013 | |||||||||||||||||
Total | Input Levels Used | ||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||
Cash and equivalents | $ | 88,283 | $ | 88,283 | $ | — | $ | — | |||||||||
Available for sale securities | 118,647 | — | 118,647 | — | |||||||||||||
Foreign currency forward contracts | -684 | — | -684 | — | |||||||||||||
Commodity futures contracts, net | -130 | -130 | — | — | |||||||||||||
Trading securities | 63,215 | 63,215 | — | — | |||||||||||||
Total assets measured at fair value | $ | 269,331 | $ | 151,368 | $ | 117,963 | $ | — | |||||||||
Available for sale securities which utilize Level 2 inputs consist primarily of municipal and corporate bonds, which are valued based on quoted market prices or alternative pricing sources with reasonable levels of price transparency. | |||||||||||||||||
A summary of the aggregate fair value, gross unrealized gains, gross unrealized losses, realized losses and amortized cost basis of the Company’s investment portfolio by major security type is as follows: | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
Amortized | Fair | Unrealized | Realized | ||||||||||||||
Available for Sale: | Cost | Value | Gains | Losses | Losses | ||||||||||||
Municipal bonds | $ | 51,797 | $ | 51,804 | $ | 7 | $ | — | $ | — | |||||||
Corporate bonds | 72,587 | 72,075 | — | -512 | — | ||||||||||||
Government securities | 2,450 | 2,446 | -4 | ||||||||||||||
Certificates of deposit | 5,014 | 5,007 | -7 | ||||||||||||||
Mutual funds | 20 | 15 | — | -5 | — | ||||||||||||
$ | 131,868 | $ | 131,347 | $ | 7 | $ | -528 | $ | — | ||||||||
December 31, 2013 | |||||||||||||||||
Amortized | Fair | Unrealized | Realized | ||||||||||||||
Available for Sale: | Cost | Value | Gains | Losses | Losses | ||||||||||||
Municipal bonds | $ | 75,488 | $ | 75,622 | $ | 134 | $ | — | $ | — | |||||||
Corporate bonds | 37,258 | 37,214 | — | -44 | — | ||||||||||||
Certificates of deposit | 5,796 | 5,794 | -2 | ||||||||||||||
Mutual funds | 20 | 17 | — | -3 | — | ||||||||||||
$ | 118,562 | $ | 118,647 | $ | 134 | $ | -49 | $ | — | ||||||||
During the fourth quarter 2013, the Company sold its investment in Jefferson County Alabama Sewer Revenue Refunding Warrants for $10,840. This was an auction rate security (ARS) originally purchased for $13,550 in 2008 with an insurance-backed AAA rating. Because the Company recorded an other-than-temporary pre-tax impairment of $5,140 in 2008 on this ARS investment which resulted in a carrying value of $8,410 at that time, a net gain of $2,430 was recorded on this sale in fourth quarter 2013. Since recording this initial impairment in 2008, the Company has carried this ARS investment at its estimated fair value utilizing a valuation model with Level 3 inputs, as defined by guidance, and resulting changes in the market value since the original impairment charge in 2008 have been recorded as changes to accumulated other comprehensive income (loss) each year. | |||||||||||||||||
The fair value of the Company’s industrial revenue development bonds at December 31, 2014 and 2013 were valued using Level 2 inputs which approximates the carrying value of $7,500 for both periods. Interest rates on these bonds reset weekly based on current market conditions. | |||||||||||||||||
DERIVATIVE_INSTRUMENTS_AND_HED
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES: | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Derivative Instruments and Hedging Activities | |||||||||||
Derivative Instruments and Hedging Activities | NOTE 11—DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES: | ||||||||||
From time to time, the Company uses derivative instruments, including foreign currency forward contracts, commodity futures contracts and commodity option contracts, to manage its exposures to foreign exchange and commodity prices. Commodity futures contracts and most commodity option contracts are intended and effective as hedges of market price risks associated with the anticipated purchase of certain raw materials (primarily sugar). Foreign currency forward contracts are intended and effective as hedges of the Company’s exposure to the variability of cash flows, primarily related to the foreign exchange rate changes of products manufactured in Canada and sold in the United States, and periodic equipment purchases from foreign suppliers denominated in a foreign currency. The Company does not engage in trading or other speculative use of derivative instruments. | |||||||||||
The Company recognizes all derivative instruments as either assets or liabilities at fair value in the Consolidated Statements of Financial Position. Derivative assets are recorded in other receivables and derivative liabilities are recorded in accrued liabilities. The Company uses either hedge accounting or mark-to-market accounting for its derivative instruments. Derivatives that qualify for hedge accounting are designated as cash flow hedges by formally documenting the hedge relationships, including identification of the hedging instruments, the hedged items and other critical terms, as well as the Company’s risk management objectives and strategies for undertaking the hedge transaction. | |||||||||||
Changes in the fair value of the Company’s cash flow hedges are recorded in accumulated other comprehensive loss, net of tax, and are reclassified to earnings in the periods in which earnings are affected by the hedged item. Substantially all amounts reported in accumulated other comprehensive loss for commodity derivatives are expected to be reclassified to cost of goods sold. Substantially all amounts reported in accumulated other comprehensive loss for foreign currency derivatives are expected to be reclassified to other income, net. | |||||||||||
The following table summarizes the Company’s outstanding derivative contracts and their effects on its Consolidated Statements of Financial Position at December 31, 2014 and 2013: | |||||||||||
December 31, 2014 | |||||||||||
Notional | |||||||||||
Amounts | Assets | Liabilities | |||||||||
Derivatives designated as hedging instruments: | |||||||||||
Foreign currency forward contracts | $ | 27,603 | $ | — | $ | -1,939 | |||||
Commodity futures contracts | 5,422 | 23 | -760 | ||||||||
Total derivatives designated as hedging instruments: | 23 | -2,699 | |||||||||
Derivatives not designated as hedging instruments: | |||||||||||
Commodity futures contracts | — | — | |||||||||
Total derivatives not designated as hedging instruments: | — | — | |||||||||
Total derivatives | $ | 23 | $ | -2,699 | |||||||
December 31, 2013 | |||||||||||
Notional | |||||||||||
Amounts | Assets | Liabilities | |||||||||
Derivatives designated as hedging instruments: | |||||||||||
Foreign currency forward contracts | $ | 34,244 | $ | — | $ | -684 | |||||
Commodity futures contracts | 5,601 | 41 | -191 | ||||||||
Total derivatives designated as hedging instruments: | 41 | -875 | |||||||||
Derivatives not designated as hedging instruments: | |||||||||||
Commodity futures contracts | 321 | 20 | — | ||||||||
Total derivatives not designated as hedging instruments: | 20 | — | |||||||||
Total derivatives | $ | 61 | $ | -875 | |||||||
The effects of derivative instruments on the Company’s Consolidated Statement of Earnings, Comprehensive Earnings and Retained Earnings for years ended December 31, 2014 and 2013 are as follows: | |||||||||||
For Year Ended December 31, 2014 | |||||||||||
Gain (Loss) | |||||||||||
Gain (Loss) | on Amount Excluded | ||||||||||
Gain (Loss) | Reclassified from | from Effectiveness | |||||||||
Recognized | Accumulated OCI | Testing Recognized | |||||||||
in OCI | into Earnings | in Earnings | |||||||||
Foreign currency forward contracts | $ | -2,256 | $ | -1,001 | $ | — | |||||
Commodity futures contracts | -881 | -294 | — | ||||||||
Total | $ | -3,137 | $ | -1,295 | $ | — | |||||
For Year Ended December 31, 2013 | |||||||||||
Gain (Loss) | |||||||||||
Gain (Loss) | on Amount Excluded | ||||||||||
Gain (Loss) | Reclassified from | from Effectiveness | |||||||||
Recognized | Accumulated OCI | Testing Recognized | |||||||||
in OCI | into Earnings | in Earnings | |||||||||
Foreign currency forward contracts | $ | -1,144 | $ | -460 | $ | — | |||||
Commodity futures contracts | -963 | -986 | — | ||||||||
Total | $ | -2,107 | $ | -1,446 | $ | — | |||||
For the years ended December 31, 2014 and 2013, the Company recognized a gain (loss) of $0 and $(42) in earnings, respectively, related to mark-to-market accounting for certain commodity futures contracts that did not receive hedge accounting. | |||||||||||
COMPREHENSIVE_EARNINGS_LOSS
COMPREHENSIVE EARNINGS (LOSS): | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Accumulated Other Comprehensive Earnings (Loss) | ||||||||||||||||||||
Accumulated Other Comprehensive Earnings (Loss) | NOTE 12—COMPREHENSIVE EARNINGS (LOSS): | |||||||||||||||||||
The following table sets forth information with respect to accumulated other comprehensive earnings (loss): | ||||||||||||||||||||
Accumulated | ||||||||||||||||||||
Foreign | Foreign | Postretirement | Other | |||||||||||||||||
Currency | Currency | Commodity | and Pension | Comprehensive | ||||||||||||||||
Translation | Investments | Derivatives | Derivatives | Benefits | Earnings (Loss) | |||||||||||||||
Balance at December 31, 2012 | $ | -13,406 | $ | 908 | $ | - | $ | -111 | $ | -3,838 | $ | -16,447 | ||||||||
Other comprehensive earnings (loss) before reclassifications | -121 | -854 | -730 | -614 | 12,777 | 10,458 | ||||||||||||||
Reclassifications from accumulated other comprehensive loss | - | - | 294 | 629 | 428 | 1,351 | ||||||||||||||
Other comprehensive earnings (loss) net of tax | -121 | -854 | -436 | 15 | 13,205 | 11,809 | ||||||||||||||
Balance at December 31, 2013 | $ | -13,527 | $ | 54 | $ | -436 | $ | -96 | $ | 9,367 | $ | -4,638 | ||||||||
Accumulated | ||||||||||||||||||||
Foreign | Foreign | Postretirement | Other | |||||||||||||||||
Currency | Currency | Commodity | and Pension | Comprehensive | ||||||||||||||||
Translation | Investments | Derivatives | Derivatives | Benefits | Earnings (Loss) | |||||||||||||||
Balance at December 31, 2013 | $ | -13,527 | $ | 54 | $ | -436 | $ | -96 | $ | 9,367 | $ | -4,638 | ||||||||
Other comprehensive earnings (loss) before reclassifications | -3,155 | -386 | -1,439 | -562 | -1,776 | -7,318 | ||||||||||||||
Reclassifications from accumulated other comprehensive loss | -817 | - | 639 | 188 | -1,152 | -1,142 | ||||||||||||||
Other comprehensive earnings (loss) net of tax | -3,972 | -386 | -800 | -374 | -2,928 | -8,460 | ||||||||||||||
Balance at December 31, 2014 | $ | -17,499 | $ | -332 | $ | -1,236 | $ | -470 | $ | 6,439 | $ | -13,098 | ||||||||
The amounts reclassified from accumulated other comprehensive income (loss) consisted of the following: | ||||||||||||||||||||
Details about Accumulated Other | Year to Date Ended | |||||||||||||||||||
Comprehensive Income Components | December 31, 2014 | December 31, 2013 | Location of (Gain) Loss Recognized in Earnings | |||||||||||||||||
Foreign currency derivatives | $ | 1,001 | $ | 459 | Other income, net | |||||||||||||||
Commodity derivatives | 294 | 987 | Product cost of goods sold | |||||||||||||||||
Foreign currency translation | -1,298 | - | Other income, net | |||||||||||||||||
Postretirement and pension benefits | -992 | 342 | Selling, marketing and administrative expenses | |||||||||||||||||
Postretirement and pension benefits | -812 | 329 | Product cost of goods sold | |||||||||||||||||
Total before tax | -1,807 | 2,117 | ||||||||||||||||||
Tax expense (benefit) | 665 | -766 | ||||||||||||||||||
Net of tax | $ | -1,142 | $ | 1,351 | ||||||||||||||||
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS: | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
GOODWILL AND INTANGIBLE ASSETS: | ||||||||
GOODWILL AND INTANGIBLE ASSETS: | NOTE 13—GOODWILL AND INTANGIBLE ASSETS: | |||||||
All of the Company’s intangible indefinite-lived assets are trademarks. | ||||||||
The changes in the carrying amount of trademarks for 2014 and 2013 were as follows: | ||||||||
2014 | 2013 | |||||||
Original cost | $ | 193,767 | $ | 193,767 | ||||
Accumulated impairment losses as of January 1 | -18,743 | -18,743 | ||||||
Balance at January 1 | $ | 175,024 | $ | 175,024 | ||||
Current year impairment losses | — | — | ||||||
Balance at December 31 | $ | 175,024 | $ | 175,024 | ||||
Accumulated impairment losses as of December 31 | $ | -18,743 | $ | -18,743 | ||||
The fair value of indefinite-lived intangible assets was primarily assessed using the present value of estimated future cash flows and relief-from-royalty method. | ||||||||
The Company has no accumulated impairment losses of goodwill. | ||||||||
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||
Additions | ||||||||||||||
(reductions) | ||||||||||||||
Balance at | charged | Balance at | ||||||||||||
beginning | (credited) to | End of | ||||||||||||
Description | of year | expense | Deductions(1) | Year | ||||||||||
2014: | ||||||||||||||
Reserve for bad debts | $ | 1,398 | $ | 29 | $ | 127 | $ | 1,300 | ||||||
Reserve for cash discounts | 644 | 9,667 | 9,643 | 668 | ||||||||||
Deferred tax asset valuation | 957 | 1,521 | — | 2,478 | ||||||||||
$ | 2,999 | $ | 11,217 | $ | 9,770 | $ | 4,446 | |||||||
2013: | ||||||||||||||
Reserve for bad debts | $ | 1,462 | $ | 16 | $ | 80 | $ | 1,398 | ||||||
Reserve for cash discounts | 680 | 9,725 | 9,761 | 644 | ||||||||||
Deferred tax asset valuation | 2,040 | -1,083 | — | 957 | ||||||||||
$ | 4,182 | $ | 8,658 | $ | 9,841 | $ | 2,999 | |||||||
2012: | ||||||||||||||
Reserve for bad debts | $ | 998 | $ | 511 | $ | 47 | $ | 1,462 | ||||||
Reserve for cash discounts | 733 | 9,959 | 10,012 | 680 | ||||||||||
Deferred tax asset valuation | 2,190 | -150 | — | 2,040 | ||||||||||
$ | 3,921 | $ | 10,320 | $ | 10,059 | $ | 4,182 | |||||||
(1) Deductions against reserve for bad debts consist of accounts receivable written off net of recoveries and exchange rate movements. Deductions against reserve for cash discounts consist of allowances to customers. | ||||||||||||||
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES: (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Significant Accounting Policies | |
Basis of consolidation | Basis of consolidation: |
The consolidated financial statements include the accounts of Tootsie Roll Industries, Inc. and its wholly-owned and majority-owned subsidiaries (the Company), which are primarily engaged in the manufacture and sales of candy products. Non-controlling interests relating to majority-owned subsidiaries are reflected in the consolidated financial statements and all significant intercompany transactions have been eliminated. | |
The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Revenue recognition | Revenue recognition: |
Products are sold to customers based on accepted purchase orders which include quantity, sales price and other relevant terms of sale. Revenue, net of applicable provisions for discounts, returns, allowances and certain advertising and promotional costs, is recognized when products are delivered to customers and collectability is reasonably assured. Shipping and handling costs of $46,525, $45,367, and $45,072 in 2014, 2013 and 2012, respectively, are included in selling, marketing and administrative expenses. Accounts receivable are unsecured. | |
Cash and cash equivalents | Cash and cash equivalents: |
The Company considers temporary cash investments with an original maturity of three months or less to be cash equivalents. | |
Investments | Investments: |
Investments consist of various marketable securities with maturities of generally up to three years. The Company classifies debt and equity securities as either available for sale or trading. Available for sale securities are not actively traded by the Company and are carried at fair value. The Company follows current fair value measurement guidance and unrealized gains and losses on these securities are excluded from earnings and are reported as a separate component of shareholders’ equity, net of applicable taxes, until realized or other-than-temporarily impaired. Trading securities relate to deferred compensation arrangements and are carried at fair value with gains or losses included in other income, net. The Company invests in trading securities to economically hedge changes in its deferred compensation liabilities. | |
The Company regularly reviews its investments to determine whether a decline in fair value below the cost basis is other-than-temporary. If the decline in fair value is judged to be other-than-temporary, the cost basis of the security is written down to fair value and the amount of the write-down is included in other income, net. Further information regarding the fair value of the Company’s investments is included in Note 10 to the Consolidated Financial Statements. | |
Derivative instruments and hedging activities | Derivative instruments and hedging activities: |
Authoritative guidance requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of derivative instruments and related gains and losses, and disclosures about credit-risk-related contingent features in derivative agreements. | |
From time to time, the Company enters into commodity futures, commodity options contracts and foreign currency forward contracts. Commodity futures and options are intended and are effective as hedges of market price risks associated with the anticipated purchase of certain raw materials (primarily sugar). Foreign currency forward contracts are intended and are effective as hedges of the Company’s exposure to the variability of cash flows, primarily related to the foreign exchange rate changes of products manufactured in Canada and sold in the United States, and periodic equipment purchases from foreign suppliers denominated in a foreign currency. The Company does not engage in trading or other speculative use of derivative instruments. Further information regarding derivative instruments and hedging activities is included in Note 11 to the Consolidated Financial Statements. | |
Inventories | Inventories: |
Inventories are stated at cost, not to exceed market. The cost of substantially all of the Company’s inventories ($65,545 and $58,038 at December 31, 2014 and 2013, respectively) has been determined by the last-in, first-out (LIFO) method. The excess of current cost over LIFO cost of inventories approximates $18,117 and $20,926 at December 31, 2014 and 2013, respectively. The cost of certain foreign inventories ($4,834 and $3,818 at December 31, 2014 and 2013, respectively) has been determined by the first-in, first-out (FIFO) method. Rebates, discounts and other cash consideration received from vendors related to inventory purchases is reflected as a reduction in the cost of the related inventory item, and is therefore reflected in cost of sales when the related inventory item is sold. | |
Property, plant and equipment | Property, plant and equipment: |
Depreciation is computed for financial reporting purposes by use of the straight-line method based on useful lives of 20 to 35 years for buildings and 5 to 20 years for machinery and equipment. Depreciation expense was $20,758, $20,050 and $19,925 in 2014, 2013 and 2012, respectively. | |
Carrying value of long-lived assets | Carrying value of long-lived assets: |
The Company reviews long-lived assets to determine if there are events or circumstances indicating that the amount of the asset reflected in the Company’s balance sheet may not be recoverable. When such indicators are present, the Company compares the carrying value of the long-lived asset, or asset group, to the future undiscounted cash flows of the underlying assets to determine if impairment exists. If applicable, an impairment charge would be recorded to write down the carrying value to its fair value. The determination of fair value involves the use of estimates of future cash flows that involve considerable management judgment and are based upon assumptions about expected future operating performance. The actual cash flows could differ from management’s estimates due to changes in business conditions, operating performance, and economic conditions. No impairment charges of long-lived assets were recorded by the Company during 2014, 2013 and 2012. | |
Postretirement health care and life insurance benefits | Postretirement health care benefits: |
The Company provides certain postretirement health care benefits to corporate office and management employees. The cost of these postretirement benefits is accrued during employees’ working careers. See Note 7 for changes to these benefits and the resulting effects of the negative amendment, as defined by guidance. The Company also provides split dollar life benefits to certain executive officers. The Company records an asset equal to the cumulative insurance premiums paid that will be recovered upon the death of covered employees or earlier under the terms of the plan. No premiums were paid in 2014, 2013 and 2012. Certain split dollar agreements were terminated during 2014 and 2013 which resulted in the full repayment to the Company of all of the cumulative premiums previously paid on these policies. During 2014 and 2013, the Company received $6,496 and $26,477, respectively, of such repayments which were recorded as a reduction in the carrying value of Split Dollar Officer Life Insurance. | |
Goodwill and indefinite-lived intangible assets | Goodwill and indefinite-lived intangible assets: |
In accordance with authoritative guidance, goodwill and intangible assets with indefinite lives are not amortized, but rather tested for impairment at least annually unless certain interim triggering events or circumstances require more frequent testing. All trademarks have been assessed by management to have indefinite lives because they are expected to generate cash flows indefinitely. Management believes that all assumptions used for the impairment tests are consistent with those utilized by market participants performing similar valuations The Company has completed its annual impairment testing of its goodwill and trademarks at December 31 of each of the years presented. No impairments of intangibles, including goodwill were recorded in 2014, 2013 and 2012. | |
With respect to impairment testing of goodwill, the first step compares the reporting unit’s estimated fair value with its carrying value. Projected discounted cash flows are used to determine the fair value of the reporting unit. If the carrying value of a reporting unit’s net assets exceeds its fair value, the second step is applied to measure the difference between the carrying value and implied fair value of goodwill. If the carrying value of goodwill exceeds its implied fair value, the goodwill is considered impaired and reduced to its implied fair value. Non-amortizable intangible assets, trademarks, are tested for impairment by comparing the fair value of each trademark with its carrying value. The fair value of trademarks is determined using discounted cash flows and estimates of royalty rates. If the carrying value exceeds fair value, the trademark is considered impaired and is reduced to fair value. | |
Income taxes | Income taxes: |
Deferred income taxes are recorded and recognized for future tax effects of temporary differences between financial and income tax reporting. The Company records valuation allowances in situations where the realization of deferred tax assets is not more-likely-than-not. Federal income taxes are provided on the portion of income of foreign subsidiaries that is expected to be remitted to the U.S. and become taxable, but not on the portion that is considered to be permanently reinvested in the foreign subsidiary. | |
Foreign currency translation | Foreign currency translation: |
The U.S. dollar is used as the functional currency where a substantial portion of the subsidiary’s business is indexed to the U.S. dollar or where its manufactured products are principally sold in the U.S. All other foreign subsidiaries use the local currency as their functional currency. Where the U.S. dollar is used as the functional currency, foreign currency remeasurements are recorded as a charge or credit to other income, net in the statement of earnings. Where the foreign local currency is used as the functional currency, translation adjustments are recorded as a separate component of accumulated other comprehensive income (loss). | |
Equity method investment | Equity method investment and majority-owned subsidiaries: |
The 2013 and 2012 financial results include the Company’s 50% interest in two Spanish companies that was accounted for using the equity method. The Company recorded an increase in its investment to the extent of its share of earnings, and reduced its investment to the extent of losses and dividends received. No dividends were paid in 2013 and 2012. | |
As of December 31, 2013 and 2012, management determined that the carrying value of this equity method investment was impaired as a result of accumulated losses from operations and review of future expectations. The Company recorded a pre-tax impairment charge of $975 and $850 in 2013 and 2012, respectively. The fair value was assessed primarily using the discounted cash flow method and liquidation valuation. The key inputs to this method include projections of future cash flows, determinations of appropriate discount rates, and other assumptions of the equity method investee which are considered reasonable and inherent in the discounted cash flow analysis. The Company’s carrying value of this investment at December 31, 2013 was not significant. | |
During first quarter 2014, the Company gained operating control of its two 50% owned Spanish companies when Company employee representatives assumed all positions on their boards of directors. This was considered a step acquisition, whereby the Company remeasured the previously held investment to fair value in first quarter 2014. As a result, the Company’s first quarter 2014 net earnings include a net loss of $529, including an additional income tax provision of $2,350 relating to deferred income taxes. During 2014, the Company further increased its control and ownership to 83% by subscribing to additional common shares of these Spanish subsidiaries for approximately $1,400 ($1,200 was paid in 2014, and the balance will be paid in 2015). The accompanying consolidated financial statements for the year ended December 31, 2014 include these Spanish companies and related minority interests. These Spanish subsidiaries are not material to the Company’s consolidated financial statements. | |
Restricted cash | Restricted cash: |
Restricted cash comprises certain cash deposits of the Company’s majority-owned Spanish subsidiaries with international banks that are pledged as collateral for letters of credit and bank borrowings. | |
VEBA trust | VEBA trust: |
During fourth quarter 2014 and 2013, the Company contributed $1,000 and $15,000 to a VEBA trust, managed and controlled by the Company, to fund the estimated future costs of certain employee health, welfare and other benefits. The Company is using these funds to pay the actual cost of such benefits through 2017. At December 31, 2014 and 2013, the VEBA trust held $10,845 and $13,991, respectively, of aggregate cash and cash equivalents. This asset value is included in prepaid expenses and long-term other assets in the Company’s Consolidated Statement of Financial Position. These assets are categorized as Level 1 within the fair value hierarchy. | |
Bank loans | Bank loans: |
Long term bank loans comprise borrowings by the Company’s majority-owned Spanish subsidiaries which are held by international banks. The average weighted interest rate in 2014 was of 3.0% and maturity dates range from 1 to 4 years. Short term bank loans also relate to the Company’s majority-owned Spanish subsidiaries. | |
Comprehensive earnings | Comprehensive earnings: |
Comprehensive earnings includes net earnings, foreign currency translation adjustments and unrealized gains/losses on commodity and/or foreign currency hedging contracts, available for sale securities and certain postretirement benefit obligations. | |
Earnings per share | Earnings per share: |
A dual presentation of basic and diluted earnings per share is not required due to the lack of potentially dilutive securities under the Company’s simple capital structure. Therefore, all earnings per share amounts represent basic earnings per share. | |
The Class B Common Stock has essentially the same rights as Common Stock, except that each share of Class B Common Stock has ten votes per share (compared to one vote per share of Common Stock), is not traded on any exchange, is restricted as to transfer and is convertible on a share-for-share basis, at any time and at no cost to the holders, into shares of Common Stock which are traded on the New York Stock Exchange. | |
Use of estimates | Use of estimates: |
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported. Estimates are used when accounting for sales discounts, allowances and incentives, product liabilities, assets recorded at fair value, income taxes, depreciation, amortization, employee benefits, contingencies and intangible asset and liability valuations. Actual results may or may not differ from those estimates. | |
Recent accounting pronouncements | Recent accounting pronouncements: |
In August 2014, the FASB issued ASU 2014-15 which provides guidance about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. This guidance will be effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. We do not expect the adoption of this guidance to have a significant impact on our condensed consolidated financial statements. | |
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09 that introduces a new five-step revenue recognition model in which an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This standard is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently evaluating the new guidance to determine the impact it may have on the condensed consolidated financial statements. | |
In April 2014, the FASB issued ASU 2014-08, which includes amendments that change the requirements for reporting discontinued operations. The new guidance requires that the disposal of a component of an entity be reported as discontinued operations only if the action represents a strategic shift that will have a major effect on an entity’s operations and financial results, and would require expanded disclosures. This guidance will be effective beginning in the first quarter 2015. We do not expect the adoption of this guidance to have a significant impact on the condensed consolidated financial statements. | |
ACCRUED_LIABILITIES_Tables
ACCRUED LIABILITIES: (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
ACCRUED LIABILITIES: | ||||||||
Schedule of accrued liabilities | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Compensation | $ | 9,788 | $ | 9,445 | ||||
Other employee benefits | 7,185 | 7,825 | ||||||
Taxes, other than income | 3,284 | 2,776 | ||||||
Advertising and promotions | 19,805 | 19,133 | ||||||
Other | 6,420 | 6,401 | ||||||
$ | 46,482 | $ | 45,580 | |||||
INCOME_TAXES_Tables
INCOME TAXES: (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Taxes | |||||||||||
Schedule of domestic and foreign components of pretax income | |||||||||||
2014 | 2013 | 2012 | |||||||||
Domestic | $ | 81,255 | $ | 73,362 | $ | 64,173 | |||||
Foreign | 10,039 | 11,121 | 9,991 | ||||||||
$ | 91,294 | $ | 84,483 | $ | 74,164 | ||||||
Schedule of components of provision of income taxes | |||||||||||
2014 | 2013 | 2012 | |||||||||
Current: | |||||||||||
Federal | $ | 25,173 | $ | 16,192 | $ | 24,312 | |||||
Foreign | 549 | 219 | 231 | ||||||||
State | 1,538 | 891 | 1,914 | ||||||||
27,260 | 17,302 | 26,457 | |||||||||
Deferred: | |||||||||||
Federal | -172 | 4,286 | -6,857 | ||||||||
Foreign | 2,032 | 1,823 | 1,710 | ||||||||
State | -686 | 223 | 850 | ||||||||
1,174 | 6,332 | -4,297 | |||||||||
$ | 28,434 | $ | 23,634 | $ | 22,160 | ||||||
Schedule of Significant components of net deferred tax liability | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Deferred tax assets: | |||||||||||
Accrued customer promotions | $ | 3,219 | $ | 3,156 | |||||||
Deferred compensation | 28,099 | 25,103 | |||||||||
Postretirement benefits | 4,895 | 3,847 | |||||||||
Other accrued expenses | 7,660 | 6,158 | |||||||||
Foreign subsidiary tax loss carry forward | 12,972 | 12,512 | |||||||||
Tax credit carry forward | 1,530 | 1,243 | |||||||||
Realized capital losses | — | 581 | |||||||||
Unrealized capital loss | — | — | |||||||||
58,375 | 52,600 | ||||||||||
Valuation allowance | -2,478 | -957 | |||||||||
Total deferred tax assets | $ | 55,897 | $ | 51,643 | |||||||
Deferred tax liabilities: | |||||||||||
Depreciation | $ | 31,520 | $ | 33,129 | |||||||
Deductible goodwill and trademarks | 43,960 | 42,073 | |||||||||
Accrued export company commissions | 5,555 | 5,391 | |||||||||
Employee benefit plans | 3,907 | 5,100 | |||||||||
Inventory reserves | 3,422 | 1,646 | |||||||||
Prepaid insurance | 867 | 785 | |||||||||
Unrealized capital gain | 2,364 | 709 | |||||||||
Deferred gain on sale of real estate | 8,168 | 8,234 | |||||||||
Total deferred tax liabilities | $ | 99,763 | $ | 97,067 | |||||||
Net deferred tax liability | $ | 43,866 | $ | 45,424 | |||||||
Schedule of reconciliation of statutory and effective income tax rate | |||||||||||
2014 | 2013 | 2012 | |||||||||
U.S. statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | |||||
State income taxes, net | 1.0 | 1.0 | 1.1 | ||||||||
Exempt municipal bond interest | -0.5 | -0.4 | -0.5 | ||||||||
Foreign tax rates | -1.5 | -2 | -1.6 | ||||||||
Qualified domestic production activities deduction | -2.8 | -2.2 | -3.1 | ||||||||
Tax credits receivable | -0.6 | -0.9 | -0.9 | ||||||||
Adjustment of deferred tax balances | 1.9 | -1.1 | -0.5 | ||||||||
Reserve for uncertain tax benefits | — | -0.7 | -0.3 | ||||||||
Other, net | -1.4 | -0.7 | 0.7 | ||||||||
Effective income tax rate | 31.1 | % | 28.0 | % | 29.9 | % | |||||
Schedule of reconciliation of beginning and ending balances of total amounts of unrecognized tax benefits | |||||||||||
2014 | 2013 | 2012 | |||||||||
Unrecognized tax benefits at January 1 | $ | 6,010 | $ | 6,677 | $ | 6,804 | |||||
Increases in tax positions for the current year | 1,827 | 1,163 | 727 | ||||||||
Increases in tax positions for new uncertain tax position | 609 | — | — | ||||||||
Reductions in tax positions for lapse of statute of limitations | -1,050 | -867 | -854 | ||||||||
Reductions in tax positions relating to settlements with taxing authorities | -403 | -140 | — | ||||||||
Reductions in tax positions for effective settlements | — | -823 | — | ||||||||
Unrecognized tax benefits at December 31 | $ | 6,993 | $ | 6,010 | $ | 6,677 | |||||
SHARE_CAPITAL_AND_CAPITAL_IN_E1
SHARE CAPITAL AND CAPITAL IN EXCESS OF PAR VALUE: (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
SHARE CAPITAL AND CAPITAL IN EXCESS OF PAR VALUE: | ||||||||||||||||||||
Schedule of changes in share capital and capital in excess of par value | ||||||||||||||||||||
Capital in | ||||||||||||||||||||
Class B | Excess | |||||||||||||||||||
Common Stock | Common Stock | Treasury Stock | of Par | |||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Value | ||||||||||||||
(000’s) | (000’s) | (000’s) | ||||||||||||||||||
Balance at January 1, 2012 | 36,479 | $ | 25,333 | 21,025 | $ | 14,601 | 71 | $ | -1,992 | $ | 533,677 | |||||||||
Issuance of 3% stock dividend | 1,085 | 753 | 631 | 437 | 2 | — | 37,046 | |||||||||||||
Conversion of Class B common shares to common shares | 29 | 20 | -29 | -20 | — | — | — | |||||||||||||
Purchase and retirement of common shares | -944 | -656 | — | — | — | — | -23,147 | |||||||||||||
Balance at December 31, 2012 | 36,649 | 25,450 | 21,627 | 15,018 | 73 | -1,992 | 547,576 | |||||||||||||
Issuance of 3% stock dividend | 1,095 | 761 | 648 | 450 | 3 | — | 47,714 | |||||||||||||
Conversion of Class B common shares to common shares | 19 | 13 | -19 | -13 | — | — | — | |||||||||||||
Purchase and retirement of common shares | -752 | -522 | — | — | — | — | -22,621 | |||||||||||||
Balance at December 31, 2013 | 37,011 | 25,702 | 22,256 | 15,455 | 76 | -1,992 | 572,669 | |||||||||||||
Issuance of 3% stock dividend | 1,099 | 763 | 667 | 464 | 2 | — | 50,939 | |||||||||||||
Conversion of Class B common shares to common shares | 36 | 25 | -36 | -25 | — | — | — | |||||||||||||
Purchase and retirement of common shares | -861 | -598 | — | — | — | — | -24,422 | |||||||||||||
Balance at December 31, 2014 | 37,285 | $ | 25,892 | 22,887 | $ | 15,894 | 78 | $ | -1,992 | $ | 599,186 | |||||||||
Schedule of shares purchased and retired | ||||||||||||||||||||
Total Number of Shares | ||||||||||||||||||||
Year | Purchased (000’s) | Average Price Paid Per Share | ||||||||||||||||||
2014 | 861 | $ | 29.02 | |||||||||||||||||
2013 | 752 | $ | 30.73 | |||||||||||||||||
2012 | 944 | $ | 25.16 | |||||||||||||||||
OTHER_INCOME_NET_Tables
OTHER INCOME, NET: (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
OTHER INCOME, NET: | |||||||||||
Schedule of other income, net | |||||||||||
2014 | 2013 | 2012 | |||||||||
Interest and dividend income | $ | 1,582 | $ | 1,445 | $ | 1,369 | |||||
Gains on trading securities relating to deferred compensation plans | 4,901 | 10,588 | 4,616 | ||||||||
Interest expense | -99 | -92 | -137 | ||||||||
Pretax gain on step acquisition | 1,821 | — | — | ||||||||
Impairment of equity investment | — | -975 | -850 | ||||||||
Equity method investment loss | — | -967 | -1,019 | ||||||||
Foreign exchange gains (losses) | -861 | -790 | 442 | ||||||||
Capital gains (losses) | -219 | 2,576 | -59 | ||||||||
Miscellaneous, net | 246 | 345 | 323 | ||||||||
$ | 7,371 | $ | 12,130 | $ | 4,685 | ||||||
EMPLOYEE_BENEFIT_PLANS_Tables
EMPLOYEE BENEFIT PLANS: (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Pension Plans | |||||||||||
Schedule of amounts recognized in accumulated other comprehensive loss (pre-tax) | |||||||||||
Prior service credit | $ | -9,449 | |||||||||
Net actuarial loss | -892 | ||||||||||
Net amount recognized in accumulated other comprehensive (gain) loss | $ | -10,341 | |||||||||
Schedule of changes in accumulated postretirement benefit obligation | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Benefit obligation, beginning of year | $ | 9,176 | $ | 27,381 | |||||||
Service cost | 342 | 1,036 | |||||||||
Interest cost | 423 | 1,060 | |||||||||
Plan amendments | — | -10,425 | |||||||||
Actuarial (gain)/loss | 2,611 | -9,734 | |||||||||
Benefits paid | -241 | -142 | |||||||||
Benefit obligation, end of year | $ | 12,311 | $ | 9,176 | |||||||
Schedule of net periodic postretirement benefit cost | |||||||||||
2014 | 2013 | 2012 | |||||||||
Service cost—benefits attributed to service during the period | $ | 342 | $ | 1,036 | $ | 1,034 | |||||
Interest cost on the accumulated postretirement benefit obligation | 423 | 1,060 | 1,113 | ||||||||
Net amortization | -1,804 | 671 | 1,036 | ||||||||
Net periodic postretirement benefit cost (income) | $ | -1,039 | $ | 2,767 | $ | 3,183 | |||||
SEGMENT_AND_GEOGRAPHIC_INFORMA1
SEGMENT AND GEOGRAPHIC INFORMATION: (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
SEGMENT AND GEOGRAPHIC INFORMATION: | |||||||||||
Schedule of geographic data | |||||||||||
2014 | 2013 | 2012 | |||||||||
Net product sales: | |||||||||||
United States | $ | 488,795 | $ | 495,082 | $ | 499,660 | |||||
Canada and Other | 51,100 | 44,545 | 46,325 | ||||||||
$ | 539,895 | $ | 539,627 | $ | 545,985 | ||||||
Long-lived assets: | |||||||||||
United States | $ | 153,444 | $ | 160,099 | $ | 161,504 | |||||
Canada and Other | 36,637 | 36,817 | 39,786 | ||||||||
$ | 190,081 | $ | 196,916 | $ | 201,290 | ||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS: (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Schedule of financial assets and liabilities measured at fair value | |||||||||||||||||
Estimated Fair Value December 31, 2014 | |||||||||||||||||
Total | Input Levels Used | ||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||
Cash and equivalents | $ | 100,108 | $ | 100,108 | $ | — | $ | — | |||||||||
Available for sale securities | 131,347 | 2,446 | 128,901 | — | |||||||||||||
Foreign currency forward contracts | -1,939 | — | -1,939 | — | |||||||||||||
Commodity futures contracts, net | -737 | -737 | — | — | |||||||||||||
Trading securities | 71,682 | 71,682 | — | — | |||||||||||||
Total assets measured at fair value | $ | 300,461 | $ | 173,499 | $ | 126,962 | $ | — | |||||||||
Estimated Fair Value December 31, 2013 | |||||||||||||||||
Total | Input Levels Used | ||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||
Cash and equivalents | $ | 88,283 | $ | 88,283 | $ | — | $ | — | |||||||||
Available for sale securities | 118,647 | — | 118,647 | — | |||||||||||||
Foreign currency forward contracts | -684 | — | -684 | — | |||||||||||||
Commodity futures contracts, net | -130 | -130 | — | — | |||||||||||||
Trading securities | 63,215 | 63,215 | — | — | |||||||||||||
Total assets measured at fair value | $ | 269,331 | $ | 151,368 | $ | 117,963 | $ | — | |||||||||
Summary of the aggregate fair value, gross unrealized gains, gross unrealized losses, realized losses and amortized cost basis of investment portfolio by major security type | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
Amortized | Fair | Unrealized | Realized | ||||||||||||||
Available for Sale: | Cost | Value | Gains | Losses | Losses | ||||||||||||
Municipal bonds | $ | 51,797 | $ | 51,804 | $ | 7 | $ | — | $ | — | |||||||
Corporate bonds | 72,587 | 72,075 | — | -512 | — | ||||||||||||
Government securities | 2,450 | 2,446 | -4 | ||||||||||||||
Certificates of deposit | 5,014 | 5,007 | -7 | ||||||||||||||
Mutual funds | 20 | 15 | — | -5 | — | ||||||||||||
$ | 131,868 | $ | 131,347 | $ | 7 | $ | -528 | $ | — | ||||||||
December 31, 2013 | |||||||||||||||||
Amortized | Fair | Unrealized | Realized | ||||||||||||||
Available for Sale: | Cost | Value | Gains | Losses | Losses | ||||||||||||
Municipal bonds | $ | 75,488 | $ | 75,622 | $ | 134 | $ | — | $ | — | |||||||
Corporate bonds | 37,258 | 37,214 | — | -44 | — | ||||||||||||
Certificates of deposit | 5,796 | 5,794 | -2 | ||||||||||||||
Mutual funds | 20 | 17 | — | -3 | — | ||||||||||||
$ | 118,562 | $ | 118,647 | $ | 134 | $ | -49 | $ | — | ||||||||
DERIVATIVE_INSTRUMENTS_AND_HED1
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES: (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Derivative Instruments and Hedging Activities | |||||||||||
Summary of the Company's outstanding derivative contracts and their effects on the Condensed Consolidated Statements of Financial Position | |||||||||||
December 31, 2014 | |||||||||||
Notional | |||||||||||
Amounts | Assets | Liabilities | |||||||||
Derivatives designated as hedging instruments: | |||||||||||
Foreign currency forward contracts | $ | 27,603 | $ | — | $ | -1,939 | |||||
Commodity futures contracts | 5,422 | 23 | -760 | ||||||||
Total derivatives designated as hedging instruments: | 23 | -2,699 | |||||||||
Derivatives not designated as hedging instruments: | |||||||||||
Commodity futures contracts | — | — | |||||||||
Total derivatives not designated as hedging instruments: | — | — | |||||||||
Total derivatives | $ | 23 | $ | -2,699 | |||||||
December 31, 2013 | |||||||||||
Notional | |||||||||||
Amounts | Assets | Liabilities | |||||||||
Derivatives designated as hedging instruments: | |||||||||||
Foreign currency forward contracts | $ | 34,244 | $ | — | $ | -684 | |||||
Commodity futures contracts | 5,601 | 41 | -191 | ||||||||
Total derivatives designated as hedging instruments: | 41 | -875 | |||||||||
Derivatives not designated as hedging instruments: | |||||||||||
Commodity futures contracts | 321 | 20 | — | ||||||||
Total derivatives not designated as hedging instruments: | 20 | — | |||||||||
Total derivatives | $ | 61 | $ | -875 | |||||||
Effects of derivative instruments on the Condensed Consolidated Statement of Earnings and Retained Earnings, and the Condensed Consolidated Statement of Comprehensive Earnings | |||||||||||
For Year Ended December 31, 2014 | |||||||||||
Gain (Loss) | |||||||||||
Gain (Loss) | on Amount Excluded | ||||||||||
Gain (Loss) | Reclassified from | from Effectiveness | |||||||||
Recognized | Accumulated OCI | Testing Recognized | |||||||||
in OCI | into Earnings | in Earnings | |||||||||
Foreign currency forward contracts | $ | -2,256 | $ | -1,001 | $ | — | |||||
Commodity futures contracts | -881 | -294 | — | ||||||||
Total | $ | -3,137 | $ | -1,295 | $ | — | |||||
For Year Ended December 31, 2013 | |||||||||||
Gain (Loss) | |||||||||||
Gain (Loss) | on Amount Excluded | ||||||||||
Gain (Loss) | Reclassified from | from Effectiveness | |||||||||
Recognized | Accumulated OCI | Testing Recognized | |||||||||
in OCI | into Earnings | in Earnings | |||||||||
Foreign currency forward contracts | $ | -1,144 | $ | -460 | $ | — | |||||
Commodity futures contracts | -963 | -986 | — | ||||||||
Total | $ | -2,107 | $ | -1,446 | $ | — | |||||
COMPREHENSIVE_EARNINGS_LOSS_Ta
COMPREHENSIVE EARNINGS (LOSS): (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Accumulated Other Comprehensive Earnings (Loss) | ||||||||||||||||||||
Schedule of accumulated other comprehensive earnings (loss): | ||||||||||||||||||||
Accumulated | ||||||||||||||||||||
Foreign | Foreign | Postretirement | Other | |||||||||||||||||
Currency | Currency | Commodity | and Pension | Comprehensive | ||||||||||||||||
Translation | Investments | Derivatives | Derivatives | Benefits | Earnings (Loss) | |||||||||||||||
Balance at December 31, 2012 | $ | -13,406 | $ | 908 | $ | - | $ | -111 | $ | -3,838 | $ | -16,447 | ||||||||
Other comprehensive earnings (loss) before reclassifications | -121 | -854 | -730 | -614 | 12,777 | 10,458 | ||||||||||||||
Reclassifications from accumulated other comprehensive loss | - | - | 294 | 629 | 428 | 1,351 | ||||||||||||||
Other comprehensive earnings (loss) net of tax | -121 | -854 | -436 | 15 | 13,205 | 11,809 | ||||||||||||||
Balance at December 31, 2013 | $ | -13,527 | $ | 54 | $ | -436 | $ | -96 | $ | 9,367 | $ | -4,638 | ||||||||
Accumulated | ||||||||||||||||||||
Foreign | Foreign | Postretirement | Other | |||||||||||||||||
Currency | Currency | Commodity | and Pension | Comprehensive | ||||||||||||||||
Translation | Investments | Derivatives | Derivatives | Benefits | Earnings (Loss) | |||||||||||||||
Balance at December 31, 2013 | $ | -13,527 | $ | 54 | $ | -436 | $ | -96 | $ | 9,367 | $ | -4,638 | ||||||||
Other comprehensive earnings (loss) before reclassifications | -3,155 | -386 | -1,439 | -562 | -1,776 | -7,318 | ||||||||||||||
Reclassifications from accumulated other comprehensive loss | -817 | - | 639 | 188 | -1,152 | -1,142 | ||||||||||||||
Other comprehensive earnings (loss) net of tax | -3,972 | -386 | -800 | -374 | -2,928 | -8,460 | ||||||||||||||
Balance at December 31, 2014 | $ | -17,499 | $ | -332 | $ | -1,236 | $ | -470 | $ | 6,439 | $ | -13,098 | ||||||||
The a | ||||||||||||||||||||
Amount reclassified from accumulated other comprehensive income | ||||||||||||||||||||
Details about Accumulated Other | Year to Date Ended | |||||||||||||||||||
Comprehensive Income Components | December 31, 2014 | December 31, 2013 | Location of (Gain) Loss Recognized in Earnings | |||||||||||||||||
Foreign currency derivatives | $ | 1,001 | $ | 459 | Other income, net | |||||||||||||||
Commodity derivatives | 294 | 987 | Product cost of goods sold | |||||||||||||||||
Foreign currency translation | -1,298 | - | Other income, net | |||||||||||||||||
Postretirement and pension benefits | -992 | 342 | Selling, marketing and administrative expenses | |||||||||||||||||
Postretirement and pension benefits | -812 | 329 | Product cost of goods sold | |||||||||||||||||
Total before tax | -1,807 | 2,117 | ||||||||||||||||||
Tax expense (benefit) | 665 | -766 | ||||||||||||||||||
Net of tax | $ | -1,142 | $ | 1,351 | ||||||||||||||||
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS: (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
GOODWILL AND INTANGIBLE ASSETS: | ||||||||
Schedule of changes in carrying amount of trademarks | ||||||||
2014 | 2013 | |||||||
Original cost | $ | 193,767 | $ | 193,767 | ||||
Accumulated impairment losses as of January 1 | -18,743 | -18,743 | ||||||
Balance at January 1 | $ | 175,024 | $ | 175,024 | ||||
Current year impairment losses | — | — | ||||||
Balance at December 31 | $ | 175,024 | $ | 175,024 | ||||
Accumulated impairment losses as of December 31 | $ | -18,743 | $ | -18,743 | ||||
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES: (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue recognition: | |||
Shipping and handling costs | $46,525 | $45,367 | $45,072 |
Cash and cash equivalents: | |||
Maximum original maturity period of temporary cash investments classified as cash equivalents | 3 months | ||
Investments: | |||
Marketable securities, maximum maturity period | 3 years | ||
Inventories: | |||
Inventories at cost, last-in, first-out (LIFO) method | 65,545 | 58,038 | |
Excess of current cost over LIFO cost of inventories | 18,117 | 20,926 | |
Foreign inventories at cost, first-in, first-out (FIFO) method | $4,834 | $3,818 |
SIGNIFICANT_ACCOUNTING_POLICIE3
SIGNIFICANT ACCOUNTING POLICIES: Property (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, plant and equipment: | |||
Depreciation expense | $20,758 | $20,050 | $19,925 |
Carrying value of long-lived assets: | |||
Impairment charges of long-lived assets | $0 | $0 | $0 |
Buildings | Minimum | |||
Property, plant and equipment: | |||
Useful lives | 20 years | ||
Buildings | Maximum | |||
Property, plant and equipment: | |||
Useful lives | 35 years | ||
Machinery and equipment | Minimum | |||
Property, plant and equipment: | |||
Useful lives | 5 years | ||
Machinery and equipment | Maximum | |||
Property, plant and equipment: | |||
Useful lives | 20 years |
SIGNIFICANT_ACCOUNTING_POLICIE4
SIGNIFICANT ACCOUNTING POLICIES: Benefits and Investment (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Significant Accounting Policies | |||
Premium paid for split dollar life insurance agreements | $0 | $0 | $0 |
Amount received on termination of certain split dollar agreements | $6,496 | $26,477 |
SIGNIFICANT_ACCOUNTING_POLICIE5
SIGNIFICANT ACCOUNTING POLICIES: Invest, VEBA, NP (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 |
company | |||||||
VEBA trust | |||||||
Cash and cash equivalents held by VEBA trust | $100,108 | $88,283 | $63,862 | $100,108 | $88,283 | $78,612 | |
Goodwill and indefinite-lived intangible assets: | |||||||
Impairments of intangibles | 0 | 0 | |||||
Equity method investment: | |||||||
Ownership interest in Spanish companies before increase (as a percent) | 50.00% | 50.00% | |||||
Number of foreign companies that are accounted for using equity method | 2 | ||||||
Dividends paid by subsidiary | 0 | 0 | 0 | ||||
Pre-tax impairment charge | 975 | 850 | |||||
Net loss on step acquisition | 529 | 529 | |||||
Additional income tax provision | 2,350 | ||||||
Ownership interest in Spanish companies after step acquisition (as a percent) | 83.00% | 83.00% | |||||
Total expected payment for additional stock | 1,400 | ||||||
Payment for additional stock in Spanish companies | 1,200 | ||||||
Loans Payable, Noncurrent [Abstract] | |||||||
Long-term Debt, Weighted Average Interest Rate | 3.00% | 3.00% | |||||
VEBA Trust | |||||||
VEBA trust | |||||||
Contribution by entity to VEBA trust | 1,000 | 15,000 | |||||
VEBA Trust | Level 1 | |||||||
VEBA trust | |||||||
Cash and cash equivalents held by VEBA trust | $10,845 | $13,991 | $10,845 | $13,991 | |||
Maximum | |||||||
Loans Payable, Noncurrent [Abstract] | |||||||
Debt Instrument, Term | 4 years | ||||||
Minimum | |||||||
Loans Payable, Noncurrent [Abstract] | |||||||
Debt Instrument, Term | 1 year |
SIGNIFICANT_ACCOUNTING_POLICIE6
SIGNIFICANT ACCOUNTING POLICIES: EPS (Details) | 12 Months Ended |
Dec. 31, 2014 | |
item | |
Common Stock | |
Earnings per share: | |
Voting right per share (in votes per share) | 1 |
Class B Common Stock | |
Earnings per share: | |
Voting right per share (in votes per share) | 10 |
ACCRUED_LIABILITIES_Details
ACCRUED LIABILITIES: (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ACCRUED LIABILITIES: | ||
Compensation | $9,788 | $9,445 |
Other employee benefits | 7,185 | 7,825 |
Taxes, other than income | 3,284 | 2,776 |
Advertising and promotions | 19,805 | 19,133 |
Other | 6,420 | 6,401 |
Total accrued liabilities | $46,482 | $45,580 |
INDUSTRIAL_DEVELOPMENT_BONDS_D
INDUSTRIAL DEVELOPMENT BONDS: (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
INDUSTRIAL DEVELOPMENT BONDS: | ||
Industrial development bonds, average floating interest rate (as a percent) | 0.10% | 0.20% |
INCOME_TAXES_Details
INCOME TAXES: (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Domestic and foreign components of pretax income | |||
Domestic | $81,255 | $73,362 | $64,173 |
Foreign | 10,039 | 11,121 | 9,991 |
Earnings before income taxes | 91,294 | 84,483 | 74,164 |
Current: | |||
Federal | 25,173 | 16,192 | 24,312 |
Foreign | 549 | 219 | 231 |
State | 1,538 | 891 | 1,914 |
Total current | 27,260 | 17,302 | 26,457 |
Deferred: | |||
Federal | -172 | 4,286 | -6,857 |
Foreign | 2,032 | 1,823 | 1,710 |
State | -686 | 223 | 850 |
Total deferred | 1,174 | 6,332 | -4,297 |
Total provision for income taxes | 28,434 | 23,634 | 22,160 |
Deferred tax assets: | |||
Accrued customer promotions | 3,219 | 3,156 | |
Deferred compensation | 28,099 | 25,103 | |
Postretirement benefits | 4,895 | 3,847 | |
Other accrued expenses | 7,660 | 6,158 | |
Foreign subsidiary tax loss carry forward | 12,972 | 12,512 | |
Tax credit carry forward | 1,530 | 1,243 | |
Realized capital losses | 581 | ||
Deferred tax assets, gross | 58,375 | 52,600 | |
Valuation allowance | -2,478 | -957 | |
Total deferred tax assets | 55,897 | 51,643 | |
Deferred tax liabilities: | |||
Depreciation | 31,520 | 33,129 | |
Deductible goodwill and trademarks | 43,960 | 42,073 | |
Accrued export company commissions | 5,555 | 5,391 | |
Employee benefit plans | 3,907 | 5,100 | |
Inventory reserves | 3,422 | 1,646 | |
Prepaid insurance | 867 | 785 | |
Unrealized capital loss | 2,364 | 709 | |
Deferred gain on sale of real estate | 8,168 | 8,234 | |
Total deferred tax liabilities | 99,763 | 97,067 | |
Net deferred tax liability | 43,866 | 45,424 | |
Benefits related to foreign subsidiary tax credit carryforwards | 386 | ||
Benefits related to state tax credit carryforwards | $1,144 |
INCOME_TAXES_Reconciliation_De
INCOME TAXES: Reconciliation (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Tax benefits of foreign subsidiary tax loss carry forwards expiring in 2027 | $57 | ||
Tax benefits of foreign subsidiary tax loss carry forwards expiring in 2029 | 720 | ||
Effective income tax rate differs from the statutory rate | |||
U.S. statutory rate (as a percent) | 35.00% | 35.00% | 35.00% |
State income taxes, net (as a percent) | 1.00% | 1.00% | 1.10% |
Exempt municipal bond interest (as a percent) | -0.50% | -0.40% | -0.50% |
Foreign tax rates (as a percent) | -1.50% | -2.00% | -1.60% |
Qualified domestic production activities deduction (as a percent) | -2.80% | -2.20% | -3.10% |
Tax credits receivable (as a percent) | -0.60% | -0.90% | -0.90% |
Adjustment of deferred tax balances (as a percent) | 1.90% | -1.10% | -0.50% |
Reserve for uncertain tax benefits (as a percent) | -0.70% | -0.30% | |
Other, net (as a percent) | -1.40% | -0.70% | 0.70% |
Effective income tax rate (as a percent) | 31.10% | 28.00% | 29.90% |
Foreign subsidiaries' undistributed earnings | 5,393 | 10,988 | |
Estimated federal income tax liability on foreign subsidiaries' undistributed earnings (as a percent) | 30.00% | ||
Cash and short term investments held by foreign subsidiary | 15,986 | 11,674 | |
Portion of unrecognized tax benefits that, if recognized, would favorably affect annual effective income tax rate | 4,805 | 3,539 | |
Interest and penalties included in liability for uncertain tax positions | 1,591 | 1,157 | |
Reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits | |||
Unrecognized tax benefits at the beginning of the period | 6,010 | 6,677 | 6,804 |
Increases in tax positions for the current year | 1,827 | 1,163 | 727 |
Reductions in tax positions for lapse of statute of limitations | -1,050 | -867 | -854 |
Reductions in tax positions relating to settlements with taxing authorities | -403 | -140 | |
Reductions in tax positions for effective settlements | -823 | ||
Unrecognized tax benefits at the end of the period | 6,993 | 6,010 | 6,677 |
Canada | |||
Tax benefits of foreign subsidiary tax loss carry forwards expiring in 2027 | 289 | ||
Tax benefits of foreign subsidiary tax loss carry forwards expiring in 2028 | 5,767 | ||
Tax benefits of foreign subsidiary tax loss carry forwards expiring in 2029 | 4,104 | ||
Tax benefits of foreign subsidiary tax loss carry forwards expiring in 2031 | 720 | ||
Spain | |||
Tax benefits of foreign subsidiary tax loss carry forwards expiring in 2026 | 304 | ||
Tax benefits of foreign subsidiary tax loss carry forwards expiring in 2027 | 64 | ||
Tax benefits of foreign subsidiary tax loss carry forwards expiring in 2028 | 223 | ||
Tax benefits of foreign subsidiary tax loss carry forwards expiring in 2029 | 110 | ||
Tax benefits of foreign subsidiary tax loss carry forwards expiring in 2030 | 341 | ||
Tax benefits of foreign subsidiary tax loss carry forwards expiring in 2031 | 445 | ||
Tax benefits of foreign subsidiary tax loss carry forwards expiring in 2032 | $605 |
SHARE_CAPITAL_AND_CAPITAL_IN_E2
SHARE CAPITAL AND CAPITAL IN EXCESS OF PAR VALUE: (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in share capital and capital in excess of par value | |||
Balance at the beginning of the period | $680,305 | ||
Balance at the beginning of the period (in shares) | -76 | ||
Balance at the end of the period | 691,136 | 680,305 | |
Balance at the end of the period (in shares) | 78 | 76 | |
Total Number of Shares Purchased | 861 | 752 | 944 |
Average Price Paid Per Share (in dollars per share) | $29.02 | $30.73 | $25.16 |
Common Stock | |||
Changes in share capital and capital in excess of par value | |||
Balance at the beginning of the period | 25,702 | 25,450 | 25,333 |
Balance at the beginning of the period (in shares) | 37,011 | 36,649 | 36,479 |
Issuance of 3% stock dividend | 763 | 761 | 753 |
Issuance of 3% stock dividend (in shares) | 1,099 | 1,095 | 1,085 |
Conversion of Class B common shares to common shares | 25 | 13 | 20 |
Conversion of Class B common shares to common shares (in shares) | 36 | 19 | 29 |
Purchase and retirement of common shares | -598 | -522 | -656 |
Purchase and retirement of common shares (in shares) | -861 | -752 | -944 |
Balance at the end of the period | 25,892 | 25,702 | 25,450 |
Balance at the end of the period (in shares) | 37,285 | 37,011 | 36,649 |
Class B Common Stock | |||
Changes in share capital and capital in excess of par value | |||
Balance at the beginning of the period | 15,455 | 15,018 | 14,601 |
Balance at the beginning of the period (in shares) | 22,256 | 21,627 | 21,025 |
Issuance of 3% stock dividend | 464 | 450 | 437 |
Issuance of 3% stock dividend (in shares) | 667 | 648 | 631 |
Conversion of Class B common shares to common shares | -25 | -13 | -20 |
Conversion of Class B common shares to common shares (in shares) | -36 | -19 | -29 |
Balance at the end of the period | 15,894 | 15,455 | 15,018 |
Balance at the end of the period (in shares) | 22,887 | 22,256 | 21,627 |
Treasury Stock | |||
Changes in share capital and capital in excess of par value | |||
Balance at the beginning of the period | -1,992 | -1,992 | -1,992 |
Balance at the beginning of the period (in shares) | -76 | -73 | -71 |
Issuance of 3% stock dividend (in shares) | 2 | 3 | 2 |
Balance at the end of the period | -1,992 | -1,992 | -1,992 |
Balance at the end of the period (in shares) | 78 | 76 | 73 |
Capital in Excess of Par Value | |||
Changes in share capital and capital in excess of par value | |||
Balance at the beginning of the period | 572,669 | 547,576 | 533,677 |
Issuance of 3% stock dividend | 50,939 | 47,714 | 37,046 |
Purchase and retirement of common shares | -24,422 | -22,621 | -23,147 |
Balance at the end of the period | $599,186 | $572,669 | $547,576 |
OTHER_INCOME_Details
OTHER INCOME: (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OTHER INCOME, NET: | |||
Interest and dividend income | $1,582 | $1,445 | $1,369 |
Gains on trading securities relating to deferred compensation plans | 4,901 | 10,588 | 4,616 |
Interest expense | -99 | -92 | -137 |
Gain on step acquisition | 1,821 | ||
Impairment of equity investment | -975 | -850 | |
Equity method investment loss | -967 | -1,019 | |
Foreign exchange gains(losses) | -861 | -790 | 442 |
Capital gains(losses) | -219 | 2,576 | -59 |
Miscellaneous, net | 246 | 345 | 323 |
Total other income, net | $7,371 | $12,130 | $4,685 |
EMPLOYEE_BENEFIT_PLANS_Details
EMPLOYEE BENEFIT PLANS: (Details) (USD $) | 1 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 01, 2013 |
Pension plans | |||||
Employer contributions to profit sharing and retirement savings-investment plan | $1,117 | $1,121 | $1,107 | ||
Deferred compensation | |||||
Number of deferred compensation plans | 3 | ||||
Trading securities | 71,682 | 63,215 | |||
Pension Plan [Member] | |||||
Pension plans | |||||
Credited service period | 1 year | ||||
Pension Expense | 4,391 | 4,437 | 4,327 | ||
Multi-employer defined benefit pension plan | |||||
Pension plans | |||||
Percentage of funded status | 66.41% | ||||
Employer contributions to multi-employer defined benefit pension plans | 2,588 | 2,231 | 2,131 | ||
Deferred compensation | |||||
Percentage of annual compounded surcharge for rehabilitation within ten years | 5.00% | ||||
Percentage of interim surcharge | 5.00% | ||||
Projection period beyond which plan is projected to emerge from critical status, under the Rehabilitant Plan | 30 years | ||||
Rehabilitation period | 10 years | ||||
Estimated liability upon withdrawal from plan | 56,400 | 37,200 | |||
Surcharges included in the employer contributions to multi-employer defined benefit pension plans | $342 | $242 |
EMPLOYEE_BENEFIT_PLANS_Postret
EMPLOYEE BENEFIT PLANS: Postretirement (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Estimated future benefit payments | |||
2015 | $328 | ||
2016 | 367 | ||
2017 | 412 | ||
2018 | 451 | ||
2019 | 501 | ||
2020 through 2024 | 3,119 | ||
Postretirement benefit plans | |||
Postretirement benefit plan disclosure | |||
Reduction in benefit obligation due to plan amendment | 10,425 | ||
Assumed ultimate health care cost trend rate (as a percent) | 3.00% | ||
Decrease in discount rate (as a percent) | 0.86% | ||
Discount rate used in determining the accumulated postretirement benefit obligation (as a percent) | 3.83% | ||
Accumulated benefit obligation after plan amendment | 9,176 | ||
Amounts recognized in accumulated other comprehensive loss (pre-tax) | |||
Prior service credit | -9,449 | ||
Net actuarial loss | -892 | ||
Net amount recognized in accumulated other comprehensive (gain) loss | -10,341 | ||
Estimated amount to be amortized from accumulated other comprehensive loss (gain) into net periodic benefit cost during next fiscal year | |||
Actuarial loss (gain) | -101 | ||
Prior service credit (gain) | -1,352 | ||
Changes in the accumulated postretirement benefit obligation | |||
Benefit obligation, beginning of the period | 9,176 | 27,381 | |
Service cost | 342 | 1,036 | 1,034 |
Interest cost | 423 | 1,060 | 1,113 |
Plan amendments | -10,425 | ||
Actuarial (gain)/loss | 2,611 | -9,734 | |
Benefits paid | -241 | -142 | |
Benefit obligation, end of the period | 12,311 | 9,176 | 27,381 |
Net periodic postretirement benefit cost | |||
Service cost benefits attributed to service during the period | 342 | 1,036 | 1,034 |
Interest cost on the accumulated postretirement benefit obligation | 423 | 1,060 | 1,113 |
Net amortization | -1,804 | 671 | 1,036 |
Net periodic postretirement benefit cost | ($1,039) | $2,767 | $3,183 |
COMMITMENTS_Details
COMMITMENTS: (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
COMMITMENTS: | |||
Rental expense | $749 | $793 | $967 |
SEGMENT_AND_GEOGRAPHIC_INFORMA2
SEGMENT AND GEOGRAPHIC INFORMATION: (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
SEGMENT AND GEOGRAPHIC INFORMATION | |||
Net product sales: | $539,895 | $539,627 | $545,985 |
Long-lived assets: | 190,081 | 196,916 | 201,290 |
United States | |||
SEGMENT AND GEOGRAPHIC INFORMATION | |||
Net product sales: | 488,795 | 495,082 | 499,660 |
Long-lived assets: | 153,444 | 160,099 | 161,504 |
Canada and Other | |||
SEGMENT AND GEOGRAPHIC INFORMATION | |||
Net product sales: | 51,100 | 44,545 | 46,325 |
Long-lived assets: | $36,637 | $36,817 | $39,786 |
SEGMENT_AND_GEOGRAPHIC_INFORMA3
SEGMENT AND GEOGRAPHIC INFORMATION: Concentration (Details) (Net product sales, A major customer) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2014 | |
Wal-Mart | ||||
Concentration of Risk | ||||
Revenues from a major customer (as a percent) | 23.70% | 23.80% | 23.50% | |
McLane | ||||
Concentration of Risk | ||||
Revenues from a major customer (as a percent) | 15.10% | 15.30% | ||
McLane | Maximum | ||||
Concentration of Risk | ||||
Revenues from a major customer (as a percent) | 10.00% |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS: (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair value measurements | ||
Available for sale securities | $131,347 | $118,647 |
Trading securities | 71,682 | 63,215 |
Fair value measured on a recurring basis | Estimated Fair Value | ||
Fair value measurements | ||
Cash and cash equivalents | 100,108 | 88,283 |
Available for sale securities | 131,347 | 118,647 |
Trading securities | 71,682 | 63,215 |
Total assets measured at fair value | 300,461 | 269,331 |
Fair value measured on a recurring basis | Estimated Fair Value | Foreign currency forward contracts | ||
Fair value measurements | ||
Derivative instruments, net | -1,939 | -684 |
Fair value measured on a recurring basis | Estimated Fair Value | Commodity futures contracts | ||
Fair value measurements | ||
Derivative instruments, net | -737 | -130 |
Fair value measured on a recurring basis | Level 1 | ||
Fair value measurements | ||
Cash and cash equivalents | 100,108 | 88,283 |
Available for sale securities | 2,446 | |
Trading securities | 71,682 | 63,215 |
Total assets measured at fair value | 173,499 | 151,368 |
Fair value measured on a recurring basis | Level 2 | ||
Fair value measurements | ||
Available for sale securities | 128,901 | 118,647 |
Total assets measured at fair value | $126,962 | $117,963 |
FAIR_VALUE_MEASUREMENTS_AFS_De
FAIR VALUE MEASUREMENTS: AFS (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Available for Sale: | ||
Amortized Cost | $131,868 | $118,562 |
Fair Value | 131,347 | 118,647 |
Unrealized Gains | 7 | 134 |
Unrealized Losses | -528 | -49 |
Municipal bonds | ||
Available for Sale: | ||
Amortized Cost | 51,797 | 75,488 |
Fair Value | 51,804 | 75,622 |
Unrealized Gains | 7 | 134 |
Corporate bonds | ||
Available for Sale: | ||
Amortized Cost | 72,587 | 37,258 |
Fair Value | 72,075 | 37,214 |
Unrealized Losses | -512 | -44 |
Government securities | ||
Available for Sale: | ||
Amortized Cost | 2,450 | |
Fair Value | 2,446 | |
Unrealized Losses | -4 | |
Certificates of deposit | ||
Available for Sale: | ||
Amortized Cost | 5,014 | 5,796 |
Fair Value | 5,007 | 5,794 |
Unrealized Losses | -7 | -2 |
Mutual funds | ||
Available for Sale: | ||
Amortized Cost | 20 | 20 |
Fair Value | 15 | 17 |
Unrealized Losses | ($5) | ($3) |
FAIR_VALUE_MEASUREMENTS_Recurr
FAIR VALUE MEASUREMENTS: Recurring Basis (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2008 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2012 |
Level 3 reconciliation | |||||
Industrial revenue development bonds, carrying amount, approximates fair value | $7,500 | $7,500 | $7,500 | ||
Cost Basis | Level 2 | |||||
Level 3 reconciliation | |||||
Industrial revenue development bonds, carrying amount, approximates fair value | 7,500 | 7,500 | 7,500 | ||
Jefferson County Alabama Sewer Revenue Refunding Warrants | Auction rate security | Level 3 | |||||
Fair value on a recurring basis | |||||
Other-than-temporary pre-tax impairment on investment | 5,140 | ||||
Net gain of investment | 2,430 | ||||
Jefferson County Alabama Sewer Revenue Refunding Warrants | AAA rating | Auction rate security | |||||
Fair value on a recurring basis | |||||
Sale value of investment | 10,840 | ||||
Jefferson County Alabama Sewer Revenue Refunding Warrants | AAA rating | Auction rate security | Level 3 | |||||
Fair value on a recurring basis | |||||
Purchase cost of investment | 13,550 | ||||
Carrying value of investment | 8,410 | ||||
Level 3 reconciliation | |||||
Balance at the end of the period | $8,410 |
DERIVATIVE_INSTRUMENTS_AND_HED2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES: (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative contracts | ||
Assets | $23 | $61 |
Liabilities | -2,699 | -875 |
Derivatives designated as hedging instruments: | ||
Derivative contracts | ||
Assets | 23 | 41 |
Liabilities | -2,699 | -875 |
Derivatives designated as hedging instruments: | Foreign currency forward contracts | ||
Derivative contracts | ||
Notional Amounts | 27,603 | 34,244 |
Liabilities | -1,939 | -684 |
Derivatives designated as hedging instruments: | Commodity futures contracts | ||
Derivative contracts | ||
Notional Amounts | 5,422 | 5,601 |
Assets | 23 | 41 |
Liabilities | -760 | -191 |
Derivatives not designated as hedging instruments: | ||
Derivative contracts | ||
Assets | 20 | |
Derivatives not designated as hedging instruments: | Commodity futures contracts | ||
Derivative contracts | ||
Notional Amounts | 321 | |
Assets | $20 |
DERIVATIVE_INSTRUMENTS_AND_HED3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES: OCI (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Effect of derivative instruments on earnings | |||
Gain (Loss) Recognized in OCI | ($3,137) | ($2,107) | |
Gain (Loss) Reclassified from Accumulated OCI into Earnings | 63,298 | 60,849 | 52,004 |
Reclassified from Accumulated OCI into Earnings | |||
Effect of derivative instruments on earnings | |||
Gain (Loss) Reclassified from Accumulated OCI into Earnings | -1,295 | -1,446 | |
Foreign currency forward contracts | |||
Effect of derivative instruments on earnings | |||
Gain (Loss) Recognized in OCI | -2,256 | -1,144 | |
Foreign currency forward contracts | Reclassified from Accumulated OCI into Earnings | |||
Effect of derivative instruments on earnings | |||
Gain (Loss) Reclassified from Accumulated OCI into Earnings | -1,001 | -460 | |
Commodity futures contracts | |||
Effect of derivative instruments on earnings | |||
Gain (Loss) Recognized in OCI | -881 | -963 | |
Commodity futures contracts | Reclassified from Accumulated OCI into Earnings | |||
Effect of derivative instruments on earnings | |||
Gain (Loss) Reclassified from Accumulated OCI into Earnings | -294 | -986 | |
Commodity option and future contracts | |||
Effect of derivative instruments on earnings | |||
Recognized earnings (loss) related to mark-to-market accounting | $0 | ($42) |
COMPREHENSIVE_EARNINGS_LOSS_De
COMPREHENSIVE EARNINGS (LOSS): (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at the beginning of the period | ($4,638) | ($16,447) | |
Other comprehensive earnings (loss) before reclassifications | -7,318 | 10,458 | |
Reclassifications from accumulated other comprehensive loss | -1,142 | 1,351 | |
Other comprehensive earnings (loss) | -8,460 | 11,809 | |
Balance at the end of the period | -13,098 | -4,638 | -16,447 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |||
Other income, net | 7,371 | 12,130 | 4,685 |
Product cost of goods sold | -340,933 | -350,960 | -365,573 |
Selling, marketing and administrative expenses | -117,722 | -119,133 | -113,842 |
Total before tax | 91,294 | 84,483 | 74,164 |
Tax (expense) benefit | 2,991 | -6,797 | -1,297 |
Net earnings | 62,860 | 60,849 | 52,004 |
Reclassified from Accumulated OCI into Earnings | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |||
Total before tax | -1,807 | 2,117 | |
Tax (expense) benefit | 665 | -766 | |
Net earnings | -1,142 | 1,351 | |
Foreign Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at the beginning of the period | -13,527 | -13,406 | |
Other comprehensive earnings (loss) before reclassifications | -3,155 | -121 | |
Reclassifications from accumulated other comprehensive loss | -817 | ||
Other comprehensive earnings (loss) | -3,972 | -121 | |
Balance at the end of the period | -17,499 | -13,527 | |
Foreign Currency Translation Adjustment | Reclassified from Accumulated OCI into Earnings | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |||
Other income, net | -1,298 | ||
Investments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at the beginning of the period | 54 | 908 | |
Other comprehensive earnings (loss) before reclassifications | -386 | -854 | |
Other comprehensive earnings (loss) | -386 | -854 | |
Balance at the end of the period | -332 | 54 | |
Foreign Currency Derivatives | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at the beginning of the period | -436 | ||
Other comprehensive earnings (loss) before reclassifications | -1,439 | -730 | |
Reclassifications from accumulated other comprehensive loss | 639 | 294 | |
Other comprehensive earnings (loss) | -800 | -436 | |
Balance at the end of the period | -1,236 | -436 | |
Foreign Currency Derivatives | Reclassified from Accumulated OCI into Earnings | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |||
Other income, net | 1,001 | 459 | |
Commodity Derivatives | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at the beginning of the period | -96 | -111 | |
Other comprehensive earnings (loss) before reclassifications | -562 | -614 | |
Reclassifications from accumulated other comprehensive loss | 188 | 629 | |
Other comprehensive earnings (loss) | -374 | 15 | |
Balance at the end of the period | -470 | -96 | |
Commodity Derivatives | Reclassified from Accumulated OCI into Earnings | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |||
Product cost of goods sold | 294 | 987 | |
Postretirement and Pension Benefits | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at the beginning of the period | 9,367 | -3,838 | |
Other comprehensive earnings (loss) before reclassifications | -1,776 | 12,777 | |
Reclassifications from accumulated other comprehensive loss | -1,152 | 428 | |
Other comprehensive earnings (loss) | -2,928 | 13,205 | |
Balance at the end of the period | 6,439 | 9,367 | |
Postretirement and Pension Benefits | Reclassified from Accumulated OCI into Earnings | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |||
Product cost of goods sold | -812 | 329 | |
Selling, marketing and administrative expenses | ($992) | $342 |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS: (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Changes in carrying amount of trademarks | |||
Accumulated impairment losses of goodwill | $0 | ||
Trademarks | |||
Changes in carrying amount of trademarks | |||
Original cost | 193,767 | 193,767 | |
Accumulated impairment losses, balance at the beginning of the period | -18,743 | -18,743 | |
Carrying amount, balance at the beginning of the period | 175,024 | 175,024 | 175,024 |
Carrying amount, balance at the end of the period | 175,024 | 175,024 | 175,024 |
Accumulated impairment losses, balance at the end of the period | ($18,743) | ($18,743) |
SCHEDULE_II_VALUATION_AND_QUAL1
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Description | |||
Balance at beginning of year | $2,999 | $4,182 | $3,921 |
Additions (reductions) charged (credited) to expense | 11,217 | 8,658 | 10,320 |
Deductions | 9,770 | 9,841 | 10,059 |
Balance at End of Year | 4,446 | 2,999 | 4,182 |
Reserve for bad debts | |||
Description | |||
Balance at beginning of year | 1,398 | 1,462 | 998 |
Additions (reductions) charged (credited) to expense | 29 | 16 | 511 |
Deductions | 127 | 80 | 47 |
Balance at End of Year | 1,300 | 1,398 | 1,462 |
Reserve for cash discounts | |||
Description | |||
Balance at beginning of year | 644 | 680 | 733 |
Additions (reductions) charged (credited) to expense | 9,667 | 9,725 | 9,959 |
Deductions | 9,643 | 9,761 | 10,012 |
Balance at End of Year | 668 | 644 | 680 |
Deferred tax asset valuation | |||
Description | |||
Balance at beginning of year | 957 | 2,040 | 2,190 |
Additions (reductions) charged (credited) to expense | 1,521 | -1,083 | -150 |
Balance at End of Year | $2,478 | $957 | $2,040 |