Tootsie Roll Industries (TR) 10-Q 5 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Jun. 30, 2016shares
Entity Registrant Name	TOOTSIE ROLL INDUSTRIES INC
Entity Central Index Key	98,677
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
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	2,016
Document Fiscal Period Focus	Q2
Common Stock
Entity Common Stock, Shares Outstanding	38,230,674
Class B Common Stock
Entity Common Stock, Shares Outstanding	24,226,874

CONSOLIDATED STATEMENTS OF Fina

CONSOLIDATED STATEMENTS OF Financial Position - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015
CURRENT ASSETS:
Cash & cash equivalents	$ 91,950	$ 126,145	$ 87,005
Restricted cash	403	395	1,272
Investments	32,986	42,155	51,210
Trade accounts receivable, less allowances of $2,038, $2,225 & $2,019	29,061	51,010	27,909
Other receivables	2,419	2,772	3,673
Inventories:
Finished goods & work-in-process	59,764	35,032	70,598
Raw material & supplies	33,899	27,231	31,357
Prepaid expenses	7,722	5,935	6,310
Deferred income taxes	3,155	3,131	7,130
Total current assets	261,359	293,806	286,464
PROPERTY, PLANT & EQUIPMENT, at cost:
Land	22,166	22,188	22,262
Buildings	114,504	114,562	113,181
Machinery & equipment	355,212	357,627	349,588
Construction in progress	14,993	5,158	8,639
Property, plant and equipment, gross	506,875	499,535	493,670
Less-accumulated depreciation	322,270	314,949	306,629
Net property, plant and equipment	184,605	184,586	187,041
OTHER ASSETS:
Goodwill	73,237	73,237	73,237
Trademarks	175,024	175,024	175,024
Investments	186,931	152,930	158,111
Split dollar officer life insurance	26,042	26,042	30,813
Prepaid expenses	1,739	3,050	4,930
Deferred income taxes	289	308	1,616
Total other assets	463,262	430,591	443,731
Total assets	909,226	908,983	917,236
CURRENT LIABILITIES:
Accounts payable	14,621	11,322	15,494
Bank loan	305	231	153
Dividends payable	5,625	5,486	5,544
Accrued liabilities	44,677	50,117	46,891
Postretirement health care benefits	448	448	328
Income taxes payable		4,436	550
Liability for uncertain tax positions			1,001
Deferred compensation	667	22	14,347
Total current liabilities	66,343	72,062	84,308
NONCURRENT LIABILITIES:
Deferred income taxes	49,197	47,594	52,154
Bank loans	317	383	467
Postretirement health care benefits	11,158	10,952	12,319
Industrial development bonds	7,500	7,500	7,500
Liability for uncertain tax positions	5,128	5,101	6,639
Deferred compensation and other liabilities	69,185	66,843	67,558
Total noncurrent liabilities	142,485	138,373	146,637
TOOTSIE ROLL INDUSTRIES, INC. SHAREHOLDERS' EQUITY:
Capital in excess of par value	666,322	622,882	643,429
Retained earnings	8,491	52,349	17,454
Accumulated other comprehensive loss	(16,059)	(17,364)	(15,809)
Treasury stock (at cost)- 83, 80 & 80 shares, respectively	(1,992)	(1,992)	(1,992)
Total Tootsie Roll Industries, Inc. shareholders' equity	700,135	698,183	685,855
Noncontrolling interests	263	365	436
Total equity	700,398	698,548	686,291
Total liabilities and shareholders' equity	909,226	908,983	917,236
Common Stock
TOOTSIE ROLL INDUSTRIES, INC. SHAREHOLDERS' EQUITY:
Common stock, $.69-4/9 par value- 120,000 shares authorized; 38,231, 37,382 & 38,029, respectively, issued Class B common stock, $.69-4/9 par value- 40,000 shares authorized; 24,227, 23,542 & 23,564, respectively, issued	26,549	25,960	26,409
Class B Common Stock
TOOTSIE ROLL INDUSTRIES, INC. SHAREHOLDERS' EQUITY:
Common stock, $.69-4/9 par value- 120,000 shares authorized; 38,231, 37,382 & 38,029, respectively, issued Class B common stock, $.69-4/9 par value- 40,000 shares authorized; 24,227, 23,542 & 23,564, respectively, issued	$ 16,824	$ 16,348	$ 16,364

CONSOLIDATED STATEMENTS OF Fin3

CONSOLIDATED STATEMENTS OF Financial Position (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015
Trade accounts receivable, allowances	$ 2,038	$ 2,225	$ 2,019
Treasury stock, shares	83,000	80,000	80,000
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	38,231,000	37,382,000	38,029,000
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	24,227,000	23,542,000	23,564,000

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, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
CONSOLIDATED STATEMENTS OF Earnings and Retained Earnings
Net product sales		$ 104,259	$ 107,528	$ 207,621	$ 213,005
Rental and royalty revenue		910	908	1,943	1,752
Total revenue		105,169	108,436	209,564	214,757
Product cost of goods sold		65,009	68,733	130,833	135,878
Rental and royalty cost		245	230	547	458
Total costs		65,254	68,963	131,380	136,336
Product gross margin		39,250	38,795	76,788	77,127
Rental and royalty gross margin		665	678	1,396	1,294
Total gross margin		39,915	39,473	78,184	78,421
Selling, marketing and administrative expenses		25,618	25,839	49,671	51,823
Earnings from operations		14,297	13,634	28,513	26,598
Other income (loss), net		2,239	1,321	2,204	1,794
Earnings before income taxes		16,536	14,955	30,717	28,392
Provision for income taxes		5,462	3,735	9,787	8,069
Net earnings		11,074	11,220	20,930	20,323
Less: Net earnings (loss) attributable to noncontrolling interests		(62)	161	(102)	110
Net earnings attributable to Tootsie Roll Industries, Inc.		$ 11,136	$ 11,059	$ 21,032	$ 20,213
Net earnings attributable to Tootsie Roll Industries, Inc. per share (in dollars per share)		$ 0.18	$ 0.17	$ 0.34	$ 0.32
Dividends per share (in dollars per share)		$ 0.09	$ 0.09	$ 0.18	$ 0.17
Average number of shares outstanding (in shares)		62,427	63,426	62,466	63,532
Retained earnings at beginning of period		$ 2,972	$ 11,922	$ 52,349	$ 64,927
Net earnings attributable to Tootsie Roll Industries, Inc.		11,136	11,059	21,032	20,213
Cash dividends		(5,617)	(5,527)	(11,074)	(10,327)
Stock dividends	[1]			(53,816)	(57,359)
Retained earnings at end of period		$ 8,491	$ 17,454	$ 8,491	$ 17,454
[1]	Does not include 3% stock dividend to shareholders of record on 3/8/16 and 3/10/15.

CONSOLIDATED STATEMENTS OF Ear5

CONSOLIDATED STATEMENTS OF Earnings and Retained Earnings (Parenthetical)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
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, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
CONSOLIDATED STATEMENTS OF Comprehensive Earnings
Net earnings	$ 11,074	$ 11,220	$ 20,930	$ 20,323
Other comprehensive income (loss), before tax:
Foreign currency translation adjustments	(1,636)	(552)	(1,431)	(1,711)
Pension and postretirement reclassification adjustment:
Less: reclassification adjustment for (gains) losses to net earnings	(410)	(363)	(821)	(726)
Unrealized gains (losses) on postretirement and pension benefits	(410)	(363)	(821)	(726)
Investments:
Unrealized gains (losses) for the period on investments	509	(371)	999
Less: reclassification adjustment for (gains) losses to net earnings			4
Unrealized gains (losses) on investments	509	(371)	1,003
Derivatives:
Unrealized gains (losses) for the period on derivatives	2,162	522	3,123	(2,515)
Less: reclassification adjustment for (gains) losses to net earnings	370	999	983	1,674
Unrealized gains (losses) on derivatives	2,532	1,521	4,106	(841)
Total other comprehensive income (loss), before tax	995	235	2,857	(3,278)
Income tax benefit (expense) related to items of other comprehensive income	(953)	(286)	(1,552)	567
Total comprehensive earnings	11,116	11,169	22,235	17,612
Comprehensive earnings (loss) attributable to noncontrolling interests	(62)	161	(102)	110
Total comprehensive earnings attributable to Tootsie Roll Industries, Inc.	$ 11,178	$ 11,008	$ 22,337	$ 17,502

CONSOLIDATED STATEMENTS OF Cash

CONSOLIDATED STATEMENTS OF Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$ 20,930	$ 20,323
Adjustments to reconcile net earnings to net cash used in operating activities:
Depreciation and amortization	10,069	10,178
Deferred income taxes	675	67
Amortization of marketable security premiums	1,503	1,531
Changes in operating assets and liabilities:
Accounts receivable	21,748	15,112
Other receivables	1,877	(65)
Inventories	(31,639)	(31,950)
Prepaid expenses and other assets	1,823	4,543
Accounts payable and accrued liabilities	(142)	3,306
Income taxes payable	(6,102)	(1,462)
Postretirement health care benefits	(615)	(390)
Deferred compensation and other liabilities	1,521	1,260
Net cash from operating activities	21,648	22,453
CASH FLOWS FROM INVESTING ACTIVITIES:
Restricted cash	(2)	235
Capital expenditures	(10,389)	(6,805)
Purchases of trading securities	(2,774)	(2,978)
Sales of trading securities	613	616
Purchase of available for sale securities	(34,826)	(17,204)
Sale and maturity of available for sale securities	12,777	13,531
Net cash used in investing activities	(34,601)	(12,605)
CASH FLOWS FROM FINANCING ACTIVITIES:
Shares purchased and retired	(9,166)	(11,991)
Dividends paid in cash	(11,077)	(9,736)
Proceeds from bank loans	1,762
Repayment of bank loans	(1,764)	(158)
Net cash used in financing activities	(20,245)	(21,885)
Effect of exchange rate changes on cash	(997)	(1,066)
Decrease in cash and cash equivalents	(34,195)	(13,103)
Cash and cash equivalents at beginning of year	126,145	100,108
Cash and cash equivalents at end of year	91,950	87,005
Supplemental cash flow information:
Income taxes paid, net	15,390	9,421
Interest paid	9	12
Stock dividend issued	$ 61,671	$ 57,220

Significant Accounting Policies

Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
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 2015 Annual Report on Form 10-K. Results of operations for the period ended June 30, 2016 are not necessarily indicative of results to be expected for the year to end December 31, 2016 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. 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 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. The Company does not expect the adoption of this guidance to have a significant impact on the consolidated financial statements. In November 2015, the FASB issued ASU 2015-17 which requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in the standard. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted and the standard may be applied either retrospectively or on a prospective basis to all deferred tax assets and liabilities. The Company is currently evaluating the new guidance to determine the impact it may have on the consolidated financial statements. In January 2016, the FASB issued ASU 2016-01 which modifies certain aspects of the recognition, measurement, presentation, and disclosure of financial instruments. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and early adoption is permitted. The Company is currently evaluating the new guidance to determine the impact it may have on the consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 which amends existing guidance to require lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by long-term leases and to disclose additional quantitative and qualitative information about leasing arrangements. This ASU also provides clarifications surrounding the presentation of the effects of leases in the income statement and statement of cash flows. This guidance will be effective for the Company on January 1, 2019. The Company is currently evaluating this new guidance to determine the impact it will have on its consolidated financial statements. In April 2016, the FASB issued ASU 2016-10, which contains amendments to the new revenue recognition standard on identifying performance obligations and accounting for licenses of intellectual property. The amendments related to identifying performance obligations clarify when a promised good or service is separately identifiable and allows entities to disregard items that are immaterial in the context of a contract. The licensing implementation amendments clarify how an entity should evaluate the nature of its promise in granting a license of intellectual property, which will determine whether revenue is recognized over time or at a point in time. This new standard has the same effective date and transition requirements as ASU 2014-09. The Company is currently evaluating this new guidance to determine the impact it will have on its consolidated financial statements.

Average Shares Outstanding

Average Shares Outstanding	6 Months Ended
	Jun. 30, 2016
Average Shares Outstanding
Average Shares Outstanding	Note 2 — Average Shares Outstanding The average number of shares outstanding for year to date ended June 30, 2016 reflect stock purchases of 283 shares for $9,167 and a 3% stock dividend distributed on April 8, 2016. 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.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2016
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 2012 through 2015. With few exceptions, the Company is no longer subject to examination by tax authorities for the year 2011 and prior. The consolidated effective tax rates were 33.0% and 25.0% in second quarter 2016 and 2015, respectively, and 31.9% and 28.4% in first half 20 16 and 2015, respectively. The lower effective tax rates in second quarter and first half 2015 compared to second quarter and first half 2016 principally reflects 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 the second quarter 2015.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2016
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, 2016, December 31, 2015 and June 30, 2015, 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 corporate and municipal bonds 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, 2016, December 31, 2015 and June 30, 2015 and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value: Estimated Fair Value June 30, 2016 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, 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, net - - Trading securities - - Total assets 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 $ $ $ $ - The fair value of the Company’s industrial revenue development bonds at June 30, 2016, December 31, 2015 and June 30, 2015 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, 2016
Derivative Instruments and Hedging Activities
Derivative Instruments and Hedging Activities	Note 5 — Derivative Instruments and Hedging Activities 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, 2016, December 31, 2015 and June 30, 2015: June 30, 2016 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency forward contracts $ $ - $ Commodity futures contracts Total derivatives $ $ December 31, 2015 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency forward contracts $ $ - $ Commodity futures contracts Total derivatives $ $ June 30, 2015 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency forward contracts $ $ - $ Commodity futures contracts 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, 2016 and June 30, 2015 are as follows: For Quarter Ended June 30, 2016 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 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 30, 2016 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 $ $ $ -

Pension Plans

Pension Plans	6 Months Ended
	Jun. 30, 2016
Pension Plans
Pension Plans	Note 6 — Pension Plans During 2015 and 2016, the Company received updated notices that the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union Pension Plan (Plan), a multi-employer defined benefit pension plan for certain Company union employees, is in “critical and declining status”, as defined by the Pension Protection Act (PPA) and the Pension Benefit Guaranty Corporation (PBGC), and that the Plan is projected to become insolvent in 14 years. The Company has been advised that its withdrawal liability would have been $61,000 if it had withdrawn from the Plan during 2015. 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 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, 2015.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Earnings (Loss)	6 Months Ended
	Jun. 30, 2016
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, 2015 $ $ $ $ $ $ Other comprehensive earnings (loss) before reclassifications - Reclassifications from accumulated other comprehensive loss - Other comprehensive earnings (loss) net of tax Balance at June 30, 2016 $ $ $ $ $ $ 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 $ $ $ $ $ $ The amounts reclassified from accumulated other comprehensive income (loss) consisted of the following: Details about Accumulated Other Quarter Ended Year to Date Ended Comprehensive Income Components June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Location of (Gain) Loss Recognized in Earnings Investments $ - $ - $ $ - Other income, net 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, 2016
Restricted Cash
Restricted Cash	Note 8 — Restricted Cash Restricted cash comprises certain cash deposits of the Company’s majority-owned Spanish companies with international banks that are pledged as collateral for letters of credit and bank borrowings.

Bank Loans

Bank Loans	6 Months Ended
	Jun. 30, 2016
Bank Loans
Bank Loans	Note 9 — Bank Loans Long term bank loans comprise borrowings by the Company’s majority-owned Spanish companies which are held by international banks. The interest rate at June 30, 2016 and June 30, 2015 was 2.2 % and 2.5% , respectively, and maturity dates range from 2 to 3 years for both periods. Short term bank loans also relate to the Company’s majority-owned Spanish companies.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Measurements
Schedule of financial assets and liabilities measured at fair value	Estimated Fair Value June 30, 2016 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, 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, net - - Trading securities - - Total assets 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 $ $ $ $ -

Derivative Instruments and He18

Derivative Instruments and Hedging Activities (Tables)	6 Months Ended
	Jun. 30, 2016
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, 2016 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency forward contracts $ $ - $ Commodity futures contracts Total derivatives $ $ December 31, 2015 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency forward contracts $ $ - $ Commodity futures contracts Total derivatives $ $ June 30, 2015 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency forward contracts $ $ - $ Commodity futures contracts 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, 2016 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 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 30, 2016 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 $ $ $ -

Accumulated Other Comprehensi19

Accumulated Other Comprehensive Earnings (Loss) (Tables)	6 Months Ended
	Jun. 30, 2016
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, 2015 $ $ $ $ $ $ Other comprehensive earnings (loss) before reclassifications - Reclassifications from accumulated other comprehensive loss - Other comprehensive earnings (loss) net of tax Balance at June 30, 2016 $ $ $ $ $ $ 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 $ $ $ $ $ $
Amount reclassified from accumulated other comprehensive income	Details about Accumulated Other Quarter Ended Year to Date Ended Comprehensive Income Components June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Location of (Gain) Loss Recognized in Earnings Investments $ - $ - $ $ - Other income, net 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 $ $ $ $

Average Shares Outstanding (Det

Average Shares Outstanding (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Average Shares Outstanding
Stock purchases (in shares)			283	378
Purchase of common shares			$ 9,167	$ 11,991
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
	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2015	Mar. 31, 2015
Effective income tax rate differs from the statutory rate
Effective income tax rate (as a percent)	33.00%	31.90%	25.00%	28.40%
Reductions in tax positions relating to settlements with taxing authorities			$ 1,066

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Fair value measured on a recurring basis - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015
Fair value measurements
Cash and cash equivalents	$ 91,950	$ 126,145	$ 87,005
Available for sale securities	156,051	134,501	133,491
Trading securities	63,866	60,584	75,830
Total assets measured at fair value	313,617	318,875	292,810
Foreign currency forward contracts
Fair value measurements
Derivative instruments, net	(911)	(2,626)	(2,494)
Commodity futures contracts
Fair value measurements
Derivative instruments, net	2,661	271	(1,022)
Level 1
Fair value measurements
Cash and cash equivalents	91,950	126,145	87,005
Available for sale securities	2,440	2,430	2,454
Trading securities	63,866	60,584	75,830
Total assets measured at fair value	160,917	189,430	164,267
Level 1 | Commodity futures contracts
Fair value measurements
Derivative instruments, net	2,661	271	(1,022)
Level 2
Fair value measurements
Available for sale securities	153,611	132,071	131,037
Total assets measured at fair value	152,700	129,445	128,543
Level 2 | Foreign currency forward contracts
Fair value measurements
Derivative instruments, net	$ (911)	$ (2,626)	$ (2,494)

Fair Value Measurements - Recur

Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015
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 He24

Derivative Instruments and Hedging Activities (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015
Derivative contracts
Assets	$ 2,664	$ 484	$ 86
Liabilities	(914)	(2,839)	(3,602)
Derivatives designated as hedging instruments: | Foreign currency forward contracts
Derivative contracts
Notional Amounts	9,010	15,668	19,283
Liabilities	(911)	(2,626)	(2,494)
Derivatives designated as hedging instruments: | Commodity futures contracts
Derivative contracts
Notional Amounts	11,631	13,202	12,799
Assets	2,664	484	86
Liabilities	$ (3)	$ (213)	$ (1,108)

Derivative Instruments and He25

Derivative Instruments and Hedging Activities - OCI (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Effect of derivative instruments on earnings
Gain (Loss) Recognized in OCI	$ 2,162	$ 522	$ 3,123	$ (2,515)
Gain (Loss) Reclassified from Accumulated OCI into Earnings	11,136	11,059	21,032	20,213
Reclassified from Accumulated OCI into Earnings
Effect of derivative instruments on earnings
Gain (Loss) Reclassified from Accumulated OCI into Earnings	(370)	(999)	(983)	(1,674)
Foreign currency forward contracts
Effect of derivative instruments on earnings
Gain (Loss) Recognized in OCI	20	326	690	(1,577)
Foreign currency forward contracts | Reclassified from Accumulated OCI into Earnings
Effect of derivative instruments on earnings
Gain (Loss) Reclassified from Accumulated OCI into Earnings	(420)	(508)	(1,026)	(1,021)
Commodity futures contracts
Effect of derivative instruments on earnings
Gain (Loss) Recognized in OCI	2,142	196	2,433	(938)
Commodity futures contracts | Reclassified from Accumulated OCI into Earnings
Effect of derivative instruments on earnings
Gain (Loss) Reclassified from Accumulated OCI into Earnings	$ 50	$ (491)	$ 43	$ (653)

Pension Plans (Details)

Pension Plans (Details) - Multi-employer defined benefit pension plan	6 Months Ended
	Jun. 30, 2016USD ($)
Pension Plans
Estimated liability upon withdrawal from plan	$ 61,000
Insolvent period	14 years

Accumulated Other Comprehensi27

Accumulated Other Comprehensive Earnings (Loss) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Accumulated other comprehensive earnings (loss), net of tax
Balance at the beginning of the period	$ 698,183
Balance at the end of the period	700,135	$ 685,855
AOCI from Derivatives | Foreign currency forward contracts
Accumulated other comprehensive earnings (loss), net of tax
Balance at the beginning of the period	(1,675)	(1,236)
Other comprehensive earnings (loss) before reclassifications	440	(1,006)
Reclassifications from accumulated other comprehensive loss	655	651
Other comprehensive earnings (loss) net of tax	1,095	(355)
Balance at the end of the period	(580)	(1,591)
AOCI from Derivatives | Commodity futures contracts
Accumulated other comprehensive earnings (loss), net of tax
Balance at the beginning of the period	173	(470)
Other comprehensive earnings (loss) before reclassifications	1,552	(599)
Reclassifications from accumulated other comprehensive loss	(27)	417
Other comprehensive earnings (loss) net of tax	1,525	(182)
Balance at the end of the period	1,698	(652)
Investments
Accumulated other comprehensive earnings (loss), net of tax
Balance at the beginning of the period	(605)	(332)
Other comprehensive earnings (loss) before reclassifications	637	1
Reclassifications from accumulated other comprehensive loss	3
Other comprehensive earnings (loss) net of tax	640	1
Balance at the end of the period	35	(331)
Postretirement and Pension Benefits
Accumulated other comprehensive earnings (loss), net of tax
Balance at the beginning of the period	6,387	6,439
Reclassifications from accumulated other comprehensive loss	(524)	(464)
Other comprehensive earnings (loss) net of tax	(524)	(464)
Balance at the end of the period	5,863	5,975
Foreign Currency Translation
Accumulated other comprehensive earnings (loss), net of tax
Balance at the beginning of the period	(21,644)	(17,499)
Other comprehensive earnings (loss) before reclassifications	(1,431)	(1,711)
Other comprehensive earnings (loss) net of tax	(1,431)	(1,711)
Balance at the end of the period	(23,075)	(19,210)
Accumulated Other Comprehensive Earnings ( Loss )
Accumulated other comprehensive earnings (loss), net of tax
Balance at the beginning of the period	(17,364)	(13,098)
Other comprehensive earnings (loss) before reclassifications	1,198	(3,315)
Reclassifications from accumulated other comprehensive loss	107	604
Other comprehensive earnings (loss) net of tax	1,305	(2,711)
Balance at the end of the period	$ (16,059)	$ (15,809)

Accumulated Other Comprehensi28

Accumulated Other Comprehensive Earnings (Loss) - Reclassification from AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Other income, net	$ (2,239)	$ (1,321)	$ (2,204)	$ (1,794)
Product cost of goods sold	65,009	68,733	130,833	135,878
Selling, marketing and administrative expenses	25,618	25,839	49,671	51,823
Total before tax	(16,536)	(14,955)	(30,717)	(28,392)
Tax (expense) benefit	5,462	3,735	9,787	8,069
Net earnings	(11,074)	(11,220)	(20,930)	(20,323)
Reclassified from Accumulated OCI into Earnings
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Total before tax	(40)	636	166	948
Tax (expense) benefit	15	(230)	(59)	(344)
Net earnings	(25)	406	107	604
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	420	508	1,026	1,021
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	(50)	491	(43)	653
Investments | Reclassified from Accumulated OCI into Earnings
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Other income, net			4
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	(201)	(178)	(402)	(356)
Selling, marketing and administrative expenses	$ (209)	$ (185)	$ (419)	$ (370)

Bank Loans (Details)

Bank Loans (Details)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Minimum
Bank Loans
Maturity period	2 years	2 years
Maximum
Bank Loans
Maturity period	3 years	3 years
Spanish Companies
Bank Loans
Average weighted interest rate (as a percent)	2.20%	2.50%