Tootsie Roll Industries (TR) 10-Q 7 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - Jun. 30, 2015 - shares	Total
Entity Registrant Name	TOOTSIE ROLL INDUSTRIES INC
Entity Central Index Key	98,677
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Common Stock
Entity Common Stock, Shares Outstanding	38,029,047
Class B Common Stock
Entity Common Stock, Shares Outstanding	23,564,199

CONSOLIDATED STATEMENTS OF Fina

CONSOLIDATED STATEMENTS OF Financial Position - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 28, 2014
CURRENT ASSETS:
Cash & cash equivalents	$ 87,005	$ 100,108	$ 57,091
Restricted cash	1,272
Investments	51,210	39,450	38,995
Trade accounts receivable, less allowances of $2,019, $1,968 & $1,806	27,909	43,253	25,698
Other receivables	3,673	3,577	2,240
Inventories:
Finished goods & work-in-process	70,598	44,549	73,747
Raw material & supplies	31,357	25,830	29,651
Prepaid expenses	6,310	6,060	7,200
Deferred income taxes	7,130	1,794	3,186
Total current assets	286,464	264,621	237,808
PROPERTY, PLANT & EQUIPMENT, at cost:
Land	22,262	22,360	22,536
Buildings	113,181	113,279	111,418
Machinery & equipment	349,588	350,929	341,672
Construction in progress	8,639	1,641	9,148
Property, plant and equipment, gross	493,670	488,209	484,774
Less-accumulated depreciation	306,629	298,128	289,248
Net property, plant and equipment	187,041	190,081	195,526
OTHER ASSETS:
Goodwill	73,237	73,237	73,237
Trademarks	175,024	175,024	175,024
Investments	158,111	163,579	162,275
Split dollar officer life insurance	30,813	33,632	40,296
Prepaid expenses	4,930	6,927	8,753
Restricted cash		1,589	1,791
Deferred income taxes	1,616	1,696	4,030
Total other assets	443,731	455,684	465,406
Total assets	917,236	910,386	898,740
CURRENT LIABILITIES:
Accounts payable	15,494	11,641	14,040
Bank loan	153	124	151
Dividends payable	5,544	4,814	4,856
Accrued liabilities	46,891	46,482	44,598
Postretirement health care and life insurance benefits	328	328	111
Income taxes payable	550	1,070
Liability for uncertain tax positions	1,001
Deferred compensation	14,347
Total current liabilities	84,308	64,459	63,756
NONCURRENT LIABILITIES:
Deferred income taxes	52,154	47,356	54,503
Bank loans	467	694	930
Postretirement health care and life insurance benefits	12,319	11,983	9,338
Industrial development bonds	7,500	7,500	7,500
Liability for uncertain tax positions	6,639	8,584	9,977
Deferred compensation and other liabilities	67,558	78,674	74,028
Total noncurrent liabilities	146,637	154,791	156,276
TOOTSIE ROLL INDUSTRIES, INC. SHAREHOLDERS' EQUITY:
Capital in excess of par value	643,429	599,186	613,467
Retained earnings	17,454	64,927	29,870
Accumulated other comprehensive loss	(15,809)	(13,098)	(5,252)
Treasury stock (at cost)-80, 78 & 78 shares, respectively	(1,992)	(1,992)	(1,992)
Total Tootsie Roll Industries, Inc. shareholders' equity	685,855	690,809	678,236
Noncontrolling interests	436	327	472
Total equity	686,291	691,136	678,708
Total liabilities and shareholders' equity	917,236	910,386	898,740
Common Stock
TOOTSIE ROLL INDUSTRIES, INC. SHAREHOLDERS' EQUITY:
Common stock, $.69-4/9 par value- 120,000 shares authorized; 38,029, 37,285 & 37,777, respectively, issued; Class B common stock, $.69-4/9 par value- 40,000 shares authorized; 23,564, 22,887 & 22,910, respectively, issued	26,409	25,892	26,234
Class B Common Stock
TOOTSIE ROLL INDUSTRIES, INC. SHAREHOLDERS' EQUITY:
Common stock, $.69-4/9 par value- 120,000 shares authorized; 38,029, 37,285 & 37,777, respectively, issued; Class B common stock, $.69-4/9 par value- 40,000 shares authorized; 23,564, 22,887 & 22,910, respectively, issued	$ 16,364	$ 15,894	$ 15,909

CONSOLIDATED STATEMENTS OF Fin3

CONSOLIDATED STATEMENTS OF Financial Position (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 28, 2014
Trade accounts receivable, allowances	$ 2,019	$ 1,968	$ 1,806
Treasury stock, shares	80,000	78,000	78,000
Common Stock
Common stock, par value (in dollars per share)	$ 0.6944	$ 0.6944	$ 0.6944
Common stock, shares authorized	120,000,000	120,000,000	120,000,000
Common stock, shares issued	38,029,000	37,285,000	37,777,000
Class B Common Stock
Common stock, par value (in dollars per share)	$ 0.6944	$ 0.6944	$ 0.6944
Common stock, shares authorized	40,000,000	40,000,000	40,000,000
Common stock, shares issued	23,564,000	22,887,000	22,910,000

CONSOLIDATED STATEMENTS OF Earn

CONSOLIDATED STATEMENTS OF Earnings and Retained Earnings - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2015	Jun. 28, 2014	Jun. 30, 2015	Jun. 28, 2014
CONSOLIDATED STATEMENTS OF Earnings and Retained Earnings
Net product sales		$ 107,528	$ 104,061	$ 213,005	$ 210,873
Rental and royalty revenue		908	869	1,752	1,839
Total revenue		108,436	104,930	214,757	212,712
Product cost of goods sold		68,733	66,182	135,878	133,047
Rental and royalty cost		230	223	458	481
Total costs		68,963	66,405	136,336	133,528
Product gross margin		38,795	37,879	77,127	77,826
Rental and royalty gross margin		678	646	1,294	1,358
Total gross margin		39,473	38,525	78,421	79,184
Selling, marketing and administrative expenses		25,839	28,296	51,823	53,927
Earnings from operations		13,634	10,229	26,598	25,257
Other income, net		1,321	3,033	1,794	4,699
Earnings before income taxes		14,955	13,262	28,392	29,956
Provision for income taxes		3,735	4,305	8,069	11,642
Net earnings		11,220	8,957	20,323	18,314
Less: Net (earnings) loss attributable to noncontrolling interests		(161)	69	(110)	293
Net earnings attributable to Tootsie Roll Industries, Inc.		$ 11,059	$ 9,026	$ 20,213	$ 18,607
Net earnings attributable to Tootsie Roll Industries, Inc. per share (in dollars per share)		$ 0.18	$ 0.14	$ 0.33	$ 0.30
Dividends per share (in dollars per share)		$ 0.09	$ 0.08	$ 0.16	$ 0.16
Average number of shares outstanding (in shares)		61,611	62,455	61,717	62,538
Retained earnings at beginning of period		$ 11,922	$ 25,694	$ 64,927	$ 73,109
Net earnings attributable to Tootsie Roll Industries, Inc.		11,059	9,026	20,213	18,607
Cash dividends		(5,527)	(4,850)	(10,327)	(9,565)
Stock dividends	[1]			(57,359)	(52,281)
Retained earnings at end of period		$ 17,454	$ 29,870	$ 17,454	$ 29,870
[1]	Does not include 3% stock dividend to shareholders of record on 4/10/15 and 4/4/14.

CONSOLIDATED STATEMENTS OF Ear5

CONSOLIDATED STATEMENTS OF Earnings and Retained Earnings (Parenthetical)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 28, 2014	Jun. 30, 2015	Jun. 28, 2014
CONSOLIDATED STATEMENTS OF Earnings and Retained Earnings
Stock dividends (as a percent)	3.00%	3.00%	3.00%	3.00%

CONSOLIDATED STATEMENTS OF Comp

CONSOLIDATED STATEMENTS OF Comprehensive Earnings - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 28, 2014	Jun. 30, 2015	Jun. 28, 2014
CONSOLIDATED STATEMENTS OF Comprehensive Earnings
Net earnings	$ 11,220	$ 8,957	$ 20,323	$ 18,314
Other comprehensive income (loss), before tax:
Foreign currency translation adjustments	(552)	138	(1,711)	(1,180)
Pension and postretirement reclassification adjustment:
Less: reclassification adjustment for (gains) losses to net earnings	(363)	(451)	(726)	(902)
Unrealized gains (losses) on postretirement and pension benefits	(363)	(451)	(726)	(902)
Investments:
Unrealized gains (losses) for the period on investments	(371)	185		(31)
Unrealized gains (losses) on investments	(371)	185		(31)
Derivatives:
Unrealized gains (losses) for the period on derivatives	522	1,388	(2,515)	555
Less: reclassification adjustment for (gains) losses to net earnings	999	73	1,674	510
Unrealized gains (losses) on derivatives	1,521	1,461	(841)	1,065
Total other comprehensive income (loss), before tax	235	1,333	(3,278)	(1,048)
Income tax benefit (expense) related to items of other comprehensive income	(286)	(432)	567	434
Total comprehensive earnings	11,169	9,858	17,612	17,700
Comprehensive earnings attributable to noncontrolling interests	(161)	69	(110)	293
Total comprehensive earnings attributable to Tootsie Roll Industries, Inc.	$ 11,008	$ 9,927	$ 17,502	$ 17,993

CONSOLIDATED STATEMENTS OF Cash

CONSOLIDATED STATEMENTS OF Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 28, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$ 20,323	$ 18,314
Adjustments to reconcile net earnings to net cash used in operating activities:
Depreciation and amortization	10,178	10,189
Loss on step acquisition		529
Amortization of marketable security premiums	1,531	1,689
Changes in operating assets and liabilities:
Accounts receivable	15,112	16,520
Other receivables	(65)	3,710
Inventories	(31,950)	(39,770)
Prepaid expenses and other assets	4,543	1,063
Accounts payable and accrued liabilities	3,306	348
Income taxes payable and deferred	(1,395)	(1,119)
Postretirement health care and life insurance benefits	(390)	(421)
Deferred compensation and other liabilities	1,260	1,764
Net cash from operating activities	22,453	12,816
CASH FLOWS FROM INVESTING ACTIVITIES:
Net cash acquired in step acquisition		161
Restricted cash	235	193
Capital expenditures	(6,805)	(5,895)
Net sales (purchases) of trading securities	(2,362)	(2,627)
Purchase of available for sale securities	(17,204)	(27,331)
Sale and maturity of available for sale securities	13,531	11,566
Net cash used in investing activities	(12,605)	(23,933)
CASH FLOWS FROM FINANCING ACTIVITIES:
Shares purchased and retired	(11,991)	(10,381)
Dividends paid in cash	(9,736)	(9,567)
Repayment of bank loans	(158)	(228)
Net cash used in financing activities	(21,885)	(20,176)
Effect of exchange rate changes on cash	(1,066)	101
Increase (decrease) in cash and cash equivalents	(13,103)	(31,192)
Cash and cash equivalents at beginning of year	100,108	88,283
Cash and cash equivalents at end of quarter	87,005	57,091
Supplemental cash flow information:
Income taxes paid, net	9,421	10,496
Interest paid	12	31
Stock dividend issued	$ 57,220	$ 52,165

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES:	6 Months Ended
	Jun. 30, 2015
Significant Accounting Policies
Significant Accounting Policies	Note 1 — Significant Accounting Policies General Information Foregoing data has been prepared from the unaudited financial records of Tootsie Roll Industries, Inc. (the Company) and in the opinion of management all adjustments, which are of a normal recurring nature, necessary for a fair statement of the results for the interim period have been reflected. Certain amounts previously reported have been reclassified to conform to the current year presentation. These consolidated financial statements should be read in conjunction with the consolidated financial statements and the related notes included in the Company’s 2014 Annual Report on Form 10-K. Results of operations for the period ended June 30, 2015 are not necessarily indicative of results to be expected for the year to end December 31, 2015 because of the seasonal nature of the Company’s operations. Historically, the third quarter has been the Company’s largest sales quarter due to pre-Halloween sales. The results of the Company’s two less than wholly owned Spanish companies are consolidated and a noncontrolling interest has been recorded. (See Note 10.) Accounting Pronouncements 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, 2017, 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 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.

Average Shares Outstanding

Average Shares Outstanding	6 Months Ended
	Jun. 30, 2015
Average Shares Outstanding
Average Shares Outstanding	Note 2 — Average Shares Outstanding The average number of shares outstanding for year to date ended June 30, 2015 reflect stock purchases of 378 shares for $11,991 and a 3% stock dividend distributed on April 10, 2015. The average number of shares outstanding for year to date ended June 28, 2014 reflect stock purchases of 347 shares for $10,381 and a 3% stock dividend distributed on April 4, 2014.

INCOME TAXES_

INCOME TAXES:	6 Months Ended
	Jun. 30, 2015
Income Taxes
Income Taxes	Note 3 — Income Taxes 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, including an audit examination of the Companies amended U.S. income tax returns for 2009 and 2010, the Company is no longer subject to examination by tax authorities for the year 2010 and prior. The consolidated effective tax rates were 25.0% and 32.5% in second quarter 2015 and 2014, respectively, and 28.4% . and 38.9% in first half 2015 and 2014, respectively. The lower effective tax rates in second quarter and first half 2015 principally reflect a $1,066 release of an uncertain income tax liability and resulting income tax benefit due to a decision by a foreign court issued in second quarter 2015, and the reversal of deferred tax assets of $2,350 in first quarter 2014 relating to the step acquisition of the Spanish companies as discussed in Note 10.

FAIR VALUE MEASUREMENTS_

FAIR VALUE MEASUREMENTS:	6 Months Ended
	Jun. 30, 2015
Fair Value Measurements
Fair Value Measurements	Note 4 — Fair Value Measurements Current accounting guidance defines fair value as the price that would be received on 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 June 30, 2015, December 31, 2014 and June 28, 2014, the Company held certain financial assets that are required to be measured at fair value on a recurring basis. These included derivative hedging instruments related to the purchase of certain raw materials and foreign currencies, 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 table presents information about the Company’s financial assets and liabilities measured at fair value as of June 30, 2015, December 31, 2014 and June 28, 2014 and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value: Estimated Fair Value June 30, 2015 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ $ $ - $ - Available for sale securities - Foreign currency forward contracts - - Commodity futures contracts - - Trading securities - - Total assets measured at fair value $ $ $ $ - Estimated Fair Value December 31, 2014 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ $ $ - $ - Available for sale securities - Foreign currency forward contracts - - Commodity futures contracts, net - - Trading securities - - Total assets measured at fair value $ $ $ $ - Estimated Fair Value June 28, 2014 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ $ $ - $ - Available for sale securities - - Foreign currency forward contracts - - Commodity futures contracts - - Trading securities - - Total assets measured at fair value $ $ $ $ - The fair value of the Company’s industrial revenue development bonds at June 30, 2015, December 31, 2014 and June 28, 2014 were valued using Level 2 inputs which approximates the carrying value of $7,500 for the respective periods. Interest rates on these bonds are reset weekly based on current market conditions.

DERIVATIVE INSTRUMENTS AND HEDG

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES:	6 Months Ended
	Jun. 30, 2015
Derivative Instruments and Hedging Activities
Derivative Instruments and Hedging Activities	Note 5 — 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. 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 Condensed Consolidated Statement 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 Condensed Consolidated Statements of Financial Position at June 30, 2015, December 31, 2014 and June 28, 2014: June 30, 2015 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency forward contracts $ $ - $ Commodity futures contracts Total derivatives designated as hedging instruments Derivatives not designated as hedging instruments: Commodity futures contracts - - - Total derivatives not designated as hedging instruments - - Total derivatives $ $ December 31, 2014 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency forward contracts $ $ - $ Commodity futures contracts Total derivatives designated as hedging instruments Derivatives not designated as hedging instruments: Commodity futures contracts - - Total derivatives not designated as hedging instruments - - Total derivatives $ $ June 28, 2014 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency forward contracts $ $ $ Commodity futures contracts Total derivatives designated as hedging instruments Derivatives not designated as hedging instruments: Commodity futures contracts - - - Total derivatives not designated as hedging instruments - - Total derivatives $ $ The effects of derivative instruments on the Company’s Condensed Consolidated Statements of Earnings and Retained Earnings and the Condensed Consolidated Statements of Comprehensive Earnings for periods ended June 30, 2015 and June 28, 2014 are as follows: For Quarter Ended June 30, 2015 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 $ $ $ - Commodity futures contracts - Total $ $ $ - For Quarter Ended June 28, 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 $ $ $ - Commodity futures contracts - Total $ $ $ - For Year to Date Ended June 30, 2015 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 $ $ $ - Commodity futures contracts - Total $ $ $ - For Year to Date Ended June 28, 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 $ $ $ - Commodity futures contracts - Total $ $ $ - During the quarters and years to date ended June 30, 2015 and June 28, 2014, the Company recognized losses of $0 and $6 , and $0 and $20 respectively, related to mark-to-market accounting for certain commodity option and future contracts.

Pension PLANS_

Pension PLANS:	6 Months Ended
	Jun. 30, 2015
Pension Plans
Pension Plans	Note 6 — Pension Plans 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. Pension expense, including surcharges as discussed above, for the BC&T Plan for first half 2015 and 2014 was $1,349 and $1,354 , respectively. The aforementioned includes surcharge of $234 and $179 in first half 2015 and 2014, respectively, related to contribution increases under the plan of rehabilitation. During second quarter 2015, the Company received new notices that the Plan is in “critical and declining status”, as defined by the PPA and PBGC, for the plan year beginning January 1, 2015, and that the Plan is projected to have an accumulated funding deficiency for the 2017 through 2024 plan years. The recent notices advised that the Plan’s actuarially determined asset values would fund 65.11% , 66.41% and 66.86% of its liabilities as of its January 1, 2014, 2013, and 2012 plan valuation dates, respectively. The aforementioned funding percentages are based on actuarially determined asset valuations which differ from the market values of the Plan’s assets on these dates. Based on the market values of the Plan’s investments, its funded percentages were 60.2% and 55.3% as of January 1, 2014 and 2013, respectively. The notice also indicates that as of the January 1, 2014 valuation date, 20.8% of plan participants were active participants working for a participating employer, 51.4% were retired and receiving benefits, and 27.8% were retired or separated from service and entitled to future benefits. The Company’s existing labor contract with the local BC&T commits the Company’s participation in this Plan through third quarter 2017. 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 or the effects of any modifications to the current rehabilitation plan could be material to its consolidated results of operations or cash flows in one or more future periods. See also the Company’s Condensed Consolidated Financial Statements and related notes and Management’s Discussion and Analysis of Financial Condition and Results of Operations incorporated into the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 (the “2014 Form 10-K”).

Accumulated Other COMPREHENSIVE

Accumulated Other COMPREHENSIVE EARNINGS (LOSS):	6 Months Ended
	Jun. 30, 2015
Accumulated Other Comprehensive Earnings (Loss)
Accumulated Other Comprehensive Earnings (Loss)	Note 7 — Accumulated Other Comprehensive Earnings (Loss) Accumulated Other Comprehensive Earnings (Loss) consists of the following components: Accumulated Foreign Foreign Postretirement Other Currency Currency Commodity and Pension Comprehensive Translation Investments Derivatives Derivatives Benefits Earnings (Loss) Balance at December 31, 2014 $ $ $ $ $ $ Other comprehensive earnings (loss) before reclassifications - Reclassifications from accumulated other comprehensive loss - - Other comprehensive earnings (loss) net of tax Balance at June 30, 2015 $ $ $ $ $ $ Accumulated Foreign Foreign Postretirement Other Currency Currency Commodity and Pension Comprehensive Translation Investments Derivatives Derivatives Benefits Earnings (Loss) Balance at December 31, 2013 $ $ $ $ $ $ Other comprehensive earnings (loss) before reclassifications - Reclassifications from accumulated other comprehensive loss - - Other comprehensive earnings (loss) net of tax Balance at June 28, 2014 $ $ $ $ $ $ The amounts reclassified from accumulated other comprehensive income (loss) consisted of the following: Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Details about Accumulated Other Quarter Ended Year to Date Ended Comprehensive Income Components June 30, 2015 June 28, 2014 June 30, 2015 June 28, 2014 Location of (Gain) Loss Recognized in Earnings Foreign currency derivatives $ $ $ $ Other income, net Commodity derivatives Product cost of goods sold Postretirement and pension benefits Selling, marketing and administrative expenses Postretirement and pension benefits Product cost of goods sold Total before tax Tax (expense) benefit Net of tax $ $ $ $

Restricted Cash

Restricted Cash	6 Months Ended
	Jun. 30, 2015
Restricted Cash
Restricted Cash	Note 8 — Restricted Cash Restricted cash comprises certain cash deposits of the Company’s less than wholly owned Spanish companies (see Note 10) with international banks that are pledged as collateral for letters of credit and bank borrowings.

Bank Loans

Bank Loans	6 Months Ended
	Jun. 30, 2015
Bank Loans
Bank Loans	Note 9 — Bank Loans Long term bank loans comprise borrowings by the Company’s less than wholly owned Spanish companies (see Note 10) which are held by international banks. The average weighted interest rate in first half 2015 and first half 2014 was 0.5 % and 3.2% , respectively and maturity dates range from 1 to 4 years for both periods. Short term bank loans also relate to the Company’s less than wholly owned Spanish companies.

Step Acquisition

Step Acquisition	6 Months Ended
	Jun. 30, 2015
Step Acquisition
Step Acquisition	Note 10 — Step Acquisition 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 was paid in 2015). The accompanying consolidated financial statements for the year ended December 31, 2014 and first half ended June 30, 2015 include these Spanish companies and related minority interests. These Spanish subsidiaries are not material to the Company’s consolidated financial statements .

FAIR VALUE MEASUREMENTS_ (Table

FAIR VALUE MEASUREMENTS: (Tables)	6 Months Ended
	Jun. 30, 2015
Fair Value Measurements
Schedule of financial assets and liabilities measured at fair value	Estimated Fair Value June 30, 2015 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ $ $ - $ - Available for sale securities - Foreign currency forward contracts - - Commodity futures contracts - - Trading securities - - Total assets measured at fair value $ $ $ $ - Estimated Fair Value December 31, 2014 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ $ $ - $ - Available for sale securities - Foreign currency forward contracts - - Commodity futures contracts, net - - Trading securities - - Total assets measured at fair value $ $ $ $ - Estimated Fair Value June 28, 2014 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ $ $ - $ - Available for sale securities - - Foreign currency forward contracts - - Commodity futures contracts - - Trading securities - - Total assets measured at fair value $ $ $ $ -

DERIVATIVE INSTRUMENTS AND HE19

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES: (Tables)	6 Months Ended
	Jun. 30, 2015
Derivative Instruments and Hedging Activities
Summary of the Company's outstanding derivative contracts and their effects on the Condensed Consolidated Statements of Financial Position	June 30, 2015 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency forward contracts $ $ - $ Commodity futures contracts Total derivatives designated as hedging instruments Derivatives not designated as hedging instruments: Commodity futures contracts - - - Total derivatives not designated as hedging instruments - - Total derivatives $ $ December 31, 2014 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency forward contracts $ $ - $ Commodity futures contracts Total derivatives designated as hedging instruments Derivatives not designated as hedging instruments: Commodity futures contracts - - Total derivatives not designated as hedging instruments - - Total derivatives $ $ June 28, 2014 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency forward contracts $ $ $ Commodity futures contracts Total derivatives designated as hedging instruments Derivatives not designated as hedging instruments: Commodity futures contracts - - - Total derivatives not designated as hedging instruments - - Total derivatives $ $
Effects of derivative instruments on the Condensed Consolidated Statement of Earnings and Retained Earnings, and the Condensed Consolidated Statement of Comprehensive Earnings	For Quarter Ended June 30, 2015 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 $ $ $ - Commodity futures contracts - Total $ $ $ - For Quarter Ended June 28, 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 $ $ $ - Commodity futures contracts - Total $ $ $ - For Year to Date Ended June 30, 2015 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 $ $ $ - Commodity futures contracts - Total $ $ $ - For Year to Date Ended June 28, 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 $ $ $ - Commodity futures contracts - Total $ $ $ -

Accumulated Other COMPREHENSI20

Accumulated Other COMPREHENSIVE EARNINGS (LOSS): (Tables)	6 Months Ended
	Jun. 30, 2015
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, 2014 $ $ $ $ $ $ Other comprehensive earnings (loss) before reclassifications - Reclassifications from accumulated other comprehensive loss - - Other comprehensive earnings (loss) net of tax Balance at June 30, 2015 $ $ $ $ $ $ Accumulated Foreign Foreign Postretirement Other Currency Currency Commodity and Pension Comprehensive Translation Investments Derivatives Derivatives Benefits Earnings (Loss) Balance at December 31, 2013 $ $ $ $ $ $ Other comprehensive earnings (loss) before reclassifications - Reclassifications from accumulated other comprehensive loss - - Other comprehensive earnings (loss) net of tax Balance at June 28, 2014 $ $ $ $ $ $
Amount reclassified from accumulated other comprehensive income	Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Details about Accumulated Other Quarter Ended Year to Date Ended Comprehensive Income Components June 30, 2015 June 28, 2014 June 30, 2015 June 28, 2014 Location of (Gain) Loss Recognized in Earnings Foreign currency derivatives $ $ $ $ Other income, net Commodity derivatives Product cost of goods sold Postretirement and pension benefits Selling, marketing and administrative expenses Postretirement and pension benefits Product cost of goods sold Total before tax Tax (expense) benefit Net of tax $ $ $ $

SIGNIFICANT ACCOUNTING POLICI21

SIGNIFICANT ACCOUNTING POLICIES: (Details)	6 Months Ended
	Jun. 30, 2015company
Significant Accounting Policies
Number of Spanish companies consolidated in financial statements	2

Average Shares Outstanding (Det

Average Shares Outstanding (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 28, 2014	Jun. 30, 2015	Jun. 28, 2014
Average Shares Outstanding
Stock purchases (in shares)			378	347
Purchase of common shares			$ 11,991	$ 10,381
Stock dividends (as a percent)	3.00%	3.00%	3.00%	3.00%

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2015	Jun. 28, 2014	Mar. 29, 2014	Jun. 30, 2015	Jun. 28, 2014
Effective income tax rate differs from the statutory rate
Consolidated effective tax rates (as a percent)	25.00%	32.50%		28.40%	38.90%
Reversal of deferred tax assets			$ 2,350
Reductions in tax positions relating to settlements with taxing authorities				$ 1,066

FAIR VALUE MEASUREMENTS_ (Detai

FAIR VALUE MEASUREMENTS: (Details) - Fair value measured on a recurring basis - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 28, 2014
Estimated Fair Value
Fair value measurements
Cash and cash equivalents	$ 87,005	$ 100,108	$ 57,091
Available for sale securities	133,491	131,347	132,688
Trading securities	75,830	71,682	68,582
Total assets measured at fair value	292,810	300,461	258,592
Estimated Fair Value | Foreign currency forward contracts
Fair value measurements
Derivative instruments, net	(2,494)	(1,939)	81
Estimated Fair Value | Commodity futures contracts
Fair value measurements
Derivative instruments, net	(1,022)	(737)	150
Level 1
Fair value measurements
Cash and cash equivalents	87,005	100,108	57,091
Available for sale securities	2,454	2,446
Trading securities	75,830	71,682	68,582
Total assets measured at fair value	164,267	173,499	125,823
Level 1 | Commodity futures contracts
Fair value measurements
Derivative instruments, net	(1,022)	(737)	150
Level 2
Fair value measurements
Available for sale securities	131,037	128,901	132,688
Total assets measured at fair value	128,543	126,962	132,769
Level 2 | Foreign currency forward contracts
Fair value measurements
Derivative instruments, net	$ (2,494)	$ (1,939)	$ 81

FAIR VALUE MEASUREMENTS_ Recurr

FAIR VALUE MEASUREMENTS: Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 28, 2014
Fair value on a recurring basis
Industrial revenue development bonds, carrying amount, approximates fair value	$ 7,500	$ 7,500	$ 7,500
Cost Basis | Level 2
Fair value on a recurring basis
Industrial revenue development bonds, carrying amount, approximates fair value	7,500	7,500	7,500
Estimated Fair Value | Level 2
Fair value on a recurring basis
Industrial revenue development bonds, carrying amount, approximates fair value	$ 7,500	$ 7,500	$ 7,500

DERIVATIVE INSTRUMENTS AND HE26

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES: (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 28, 2014
Derivative contracts
Assets	$ 86	$ 23	$ 726
Liabilities	(3,602)	(2,699)	(495)
Derivatives designated as hedging instruments:
Derivative contracts
Assets	86	23	726
Liabilities	(3,602)	(2,699)	(495)
Derivatives designated as hedging instruments: | Foreign currency forward contracts
Derivative contracts
Notional Amounts	19,283	27,603	38,978
Assets			534
Liabilities	(2,494)	(1,939)	(453)
Derivatives designated as hedging instruments: | Commodity futures contracts
Derivative contracts
Notional Amounts	12,799	5,422	5,563
Assets	86	23	192
Liabilities	$ (1,108)	$ (760)	$ (42)

DERIVATIVE INSTRUMENTS AND HE27

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES: OCI (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 28, 2014	Jun. 30, 2015	Jun. 28, 2014
Effect of derivative instruments on earnings
Gain (Loss) Recognized in OCI	$ 522	$ 1,388	$ (2,515)	$ 555
Gain (Loss) Reclassified from Accumulated OCI into Earnings	11,059	9,026	20,213	18,607
Reclassified from Accumulated OCI into Earnings
Effect of derivative instruments on earnings
Gain (Loss) Reclassified from Accumulated OCI into Earnings	(999)	(73)	(1,674)	(510)
Foreign currency forward contracts
Effect of derivative instruments on earnings
Gain (Loss) Recognized in OCI	326	1,505	(1,577)	314
Foreign currency forward contracts | Reclassified from Accumulated OCI into Earnings
Effect of derivative instruments on earnings
Gain (Loss) Reclassified from Accumulated OCI into Earnings	(508)	(189)	(1,021)	(451)
Commodity futures contracts
Effect of derivative instruments on earnings
Gain (Loss) Recognized in OCI	196	(117)	(938)	241
Commodity futures contracts | Reclassified from Accumulated OCI into Earnings
Effect of derivative instruments on earnings
Gain (Loss) Reclassified from Accumulated OCI into Earnings	(491)	116	(653)	(59)
Commodity option and future contracts
Effect of derivative instruments on earnings
Recognized loss related to mark-to-market accounting for commodity contracts	$ 0	$ 6	$ 0	$ 20

Pension PLANS_ (Details)

Pension PLANS: (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 28, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2012	Dec. 31, 2011
Actuarially Determined Valuation Technique [Member] | Scenario, Adjustment [Member]
Pension plans
Percentage of funded status			65.11%		66.41%	66.86%
Multi-employer defined benefit pension plan
Pension Plans
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
Pension plans
Pension expense	$ 1,349	$ 1,354
Increase in surcharge	$ 234	$ 179
Multi-employer defined benefit pension plan | Market Approach Valuation Technique [Member] | Scenario, Adjustment [Member]
Pension plans
Percentage of funded status			60.20%		55.30%
Multi-employer defined benefit pension plan | Active participants | Scenario, Adjustment [Member]
Pension plans
Percentage of participants			20.80%
Multi-employer defined benefit pension plan | Retired or separated from service and receiving benefits | Scenario, Adjustment [Member]
Pension plans
Percentage of participants			51.40%
Multi-employer defined benefit pension plan | Retired or separated from service and entitled to receive future benefits | Scenario, Adjustment [Member]
Pension plans
Percentage of participants			27.80%

Accumulated Other Comprehensi29

Accumulated Other Comprehensive Earnings (Loss): (Components AOCI) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 28, 2014
Accumulated other comprehensive earnings (loss), net of tax
Balance at the beginning of the period	$ 690,809
Balance at the end of the period	685,855	$ 678,236
AOCI from Derivatives | Foreign currency forward contracts
Accumulated other comprehensive earnings (loss), net of tax
Balance at the beginning of the period	(1,236)	(436)
Other comprehensive earnings (loss) before reclassifications	(1,006)	200
Reclassifications from accumulated other comprehensive loss	651	288
Other comprehensive earnings (loss) net of tax	(355)	488
Balance at the end of the period	(1,591)	52
AOCI from Derivatives | Commodity futures contracts
Accumulated other comprehensive earnings (loss), net of tax
Balance at the beginning of the period	(470)	(96)
Other comprehensive earnings (loss) before reclassifications	(599)	155
Reclassifications from accumulated other comprehensive loss	417	38
Other comprehensive earnings (loss) net of tax	(182)	193
Balance at the end of the period	(652)	97
Investments
Accumulated other comprehensive earnings (loss), net of tax
Balance at the beginning of the period	(332)	54
Other comprehensive earnings (loss) before reclassifications	1	(20)
Other comprehensive earnings (loss) net of tax	1	(20)
Balance at the end of the period	(331)	34
Postretirement and Pension Benefits
Accumulated other comprehensive earnings (loss), net of tax
Balance at the beginning of the period	6,439	9,367
Reclassifications from accumulated other comprehensive loss	(464)	(576)
Other comprehensive earnings (loss) net of tax	(464)	(576)
Balance at the end of the period	5,975	8,791
Foreign Currency Translation
Accumulated other comprehensive earnings (loss), net of tax
Balance at the beginning of the period	(17,499)	(13,527)
Other comprehensive earnings (loss) before reclassifications	(1,711)	(699)
Other comprehensive earnings (loss) net of tax	(1,711)	(699)
Balance at the end of the period	(19,210)	(14,226)
Accumulated Other Comprehensive Earnings ( Loss )
Accumulated other comprehensive earnings (loss), net of tax
Balance at the beginning of the period	(13,098)	(4,638)
Other comprehensive earnings (loss) before reclassifications	(3,315)	(364)
Reclassifications from accumulated other comprehensive loss	604	(250)
Other comprehensive earnings (loss) net of tax	(2,711)	(614)
Balance at the end of the period	$ (15,809)	$ (5,252)

Accumulated Other Comprehensi30

Accumulated Other Comprehensive Earnings (Loss) (Reclassification from AOCI) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 28, 2014	Jun. 30, 2015	Jun. 28, 2014
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Other income, net	$ (1,321)	$ (3,033)	$ (1,794)	$ (4,699)
Product cost of goods sold	68,733	66,182	135,878	133,047
Selling, marketing and administrative expenses	25,839	28,296	51,823	53,927
Tax (expense) benefit	3,735	4,305	8,069	11,642
Net earnings	(11,220)	(8,957)	(20,323)	(18,314)
Reclassified from Accumulated OCI into Earnings
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Total before tax	636	(378)	948	(392)
Tax (expense) benefit	(230)	137	(344)	142
Net earnings	406	(241)	604	(250)
AOCI from Derivatives | Foreign currency forward contracts | Reclassified from Accumulated OCI into Earnings
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Other income, net	508	189	1,021	451
AOCI from Derivatives | Commodity futures contracts | Reclassified from Accumulated OCI into Earnings
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Product cost of goods sold	491	(116)	653	59
Postretirement and Pension Benefits | Reclassified from Accumulated OCI into Earnings
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Product cost of goods sold	(178)	(221)	(356)	(442)
Selling, marketing and administrative expenses	$ (185)	$ (230)	$ (370)	$ (460)

Bank Loans (Details)

Bank Loans (Details) - Spanish Companies	6 Months Ended
	Jun. 30, 2015	Jun. 28, 2014
Bank Loans
Average weighted interest rate (as a percent)	0.50%	3.20%
Minimum
Bank Loans
Maturity period	1 year	1 year
Maximum
Bank Loans
Maturity period	4 years	4 years

Step Acquisition (Details)

Step Acquisition (Details) $ in Thousands	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2015USD ($)	Jun. 28, 2014USD ($)	Mar. 29, 2014USD ($)company	Jun. 30, 2015USD ($)company	Jun. 28, 2014USD ($)	Dec. 31, 2014USD ($)
Spanish companies
Number of Spanish companies | company				2
Provision for income taxes	$ 3,735	$ 4,305		$ 8,069	$ 11,642
Spanish companies
Spanish companies
Number of Spanish companies | company			2
Ownership interest in Spanish companies after step acquisition (as a percent)			50.00%			83.00%
Net loss related to acquired companies			$ 529
Provision for income taxes			$ 2,350
Amount of subscription for common shares						$ 1,400
Payment for purchase of stock						$ 1,200