Tootsie Roll Industries (TR) 10-Q 4 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Sep. 30, 2016shares
Entity Registrant Name	TOOTSIE ROLL INDUSTRIES INC
Entity Central Index Key	98,677
Document Type	10-Q
Document Period End Date	Sep. 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	Q3
Common Stock
Entity Common Stock, Shares Outstanding	37,774,914
Class B Common Stock
Entity Common Stock, Shares Outstanding	24,226,459

CONSOLIDATED STATEMENTS OF Fina

CONSOLIDATED STATEMENTS OF Financial Position - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
CURRENT ASSETS:
Cash & cash equivalents	$ 94,239	$ 126,145	$ 70,726
Restricted cash	409	395	1,273
Investments	27,905	42,155	53,422
Trade accounts receivable, less allowances of $3,274, $2,225 & $3,349	81,718	51,010	98,088
Other receivables	1,552	2,772	4,549
Inventories:
Finished goods & work-in-process	36,173	35,032	45,929
Raw material & supplies	28,613	27,231	31,644
Prepaid expenses	5,077	5,935	5,401
Deferred income taxes	3,149	3,131	6,776
Total current assets	278,835	293,806	317,808
PROPERTY, PLANT & EQUIPMENT, at cost:
Land	22,155	22,188	22,214
Buildings	114,473	114,562	113,091
Machinery & equipment	355,059	357,627	348,988
Construction in progress	17,511	5,158	14,162
Property, plant and equipment, gross	509,198	499,535	498,455
Less-accumulated depreciation	326,609	314,949	310,887
Net property, plant and equipment	182,589	184,586	187,568
OTHER ASSETS:
Goodwill	73,237	73,237	73,237
Trademarks	175,024	175,024	175,024
Investments	189,956	152,930	152,491
Split dollar officer life insurance	26,042	26,042	26,042
Prepaid expenses and other assets	1,526	3,050	3,722
Deferred income taxes	275	308	1,505
Total other assets	466,060	430,591	432,021
Total assets	927,484	908,983	937,397
CURRENT LIABILITIES:
Accounts payable	13,366	11,322	16,592
Bank loan	164	231	253
Dividends payable	5,578	5,486	5,512
Accrued liabilities	52,354	50,117	53,119
Postretirement health care	448	448	328
Income taxes payable	3,955	4,436	10,737
Liability for uncertain tax positions			1,001
Deferred compensation			13,514
Deferred income taxes	666	22
Total current liabilities	76,531	72,062	101,056
NONCURRENT LIABILITIES:
Deferred income taxes	49,276	47,594	51,608
Bank loans	283	383	430
Postretirement health care	11,283	10,952	12,475
Industrial development bonds	7,500	7,500	7,500
Liability for uncertain tax positions	4,939	5,101	6,109
Deferred compensation and other liabilities	72,119	66,843	64,701
Total noncurrent liabilities	145,400	138,373	142,823
TOOTSIE ROLL INDUSTRIES, INC. SHAREHOLDERS' EQUITY:
Capital in excess of par value	649,514	622,882	632,667
Retained earnings	31,557	52,349	38,123
Accumulated other comprehensive loss	(16,805)	(17,364)	(18,217)
Treasury stock (at cost)- 83, 80 & 80 shares, respectively	(1,992)	(1,992)	(1,992)
Total Tootsie Roll Industries, Inc. shareholders' equity	705,330	698,183	693,111
Noncontrolling interests	223	365	407
Total equity	705,553	698,548	693,518
Total liabilities and shareholders' equity	927,484	908,983	937,397
Common Stock
TOOTSIE ROLL INDUSTRIES, INC. SHAREHOLDERS' EQUITY:
Common stock, $.69-4/9 par value- 120,000 shares authorized; 37,775, 37,382 & 37,688, respectively, issued. Class B common stock, $.69-4/9 par value- 40,000 shares authorized; 24,226, 23,542 & 23,555, respectively, issued	26,232	25,960	26,172
Class B Common Stock
TOOTSIE ROLL INDUSTRIES, INC. SHAREHOLDERS' EQUITY:
Common stock, $.69-4/9 par value- 120,000 shares authorized; 37,775, 37,382 & 37,688, respectively, issued. Class B common stock, $.69-4/9 par value- 40,000 shares authorized; 24,226, 23,542 & 23,555, respectively, issued	$ 16,824	$ 16,348	$ 16,358

CONSOLIDATED STATEMENTS OF Fin3

CONSOLIDATED STATEMENTS OF Financial Position (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
Trade accounts receivable, allowances	$ 3,274	$ 2,225	$ 3,349
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	37,775,000	37,382,000	37,688,000
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	24,226,000	23,542,000	23,555,000

CONSOLIDATED STATEMENTS OF Earn

CONSOLIDATED STATEMENTS OF Earnings and Retained Earnings - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
CONSOLIDATED STATEMENTS OF Earnings and Retained Earnings
Net product sales		$ 185,473	$ 183,806	$ 393,094	$ 396,811
Rental and royalty revenue		884	819	2,827	2,571
Total revenue		186,357	184,625	395,921	399,382
Product cost of goods sold		114,748	117,046	245,581	252,924
Rental and royalty cost		235	213	782	671
Total costs		114,983	117,259	246,363	253,595
Product gross margin		70,725	66,760	147,513	143,887
Rental and royalty gross margin		649	606	2,045	1,900
Total gross margin		71,374	67,366	149,558	145,787
Selling, marketing and administrative expenses		32,101	26,338	81,772	78,161
Earnings from operations		39,273	41,028	67,786	67,626
Other income (loss), net		1,943	(2,879)	4,147	(1,085)
Earnings before income taxes		41,216	38,149	71,933	66,541
Provision for income taxes		12,619	12,008	22,406	20,077
Net earnings		28,597	26,141	49,527	46,464
Less: Net earnings (loss) attributable to noncontrolling interests		(40)	(30)	(142)	80
Net earnings attributable to Tootsie Roll Industries, Inc.		$ 28,637	$ 26,171	$ 49,669	$ 46,384
Net earnings attributable to Tootsie Roll Industries, Inc. per share (in dollars per share)		$ 0.46	$ 0.41	$ 0.80	$ 0.73
Dividends per share (in dollars per share)		$ 0.09	$ 0.09	$ 0.27	$ 0.26
Average number of shares outstanding (in shares)		62,174	63,172	62,358	63,408
Retained earnings at beginning of period		$ 8,491	$ 17,454	$ 52,349	$ 64,927
Net earnings attributable to Tootsie Roll Industries, Inc.		28,637	26,171	49,669	46,384
Cash dividends		(5,571)	(5,502)	(16,645)	(15,829)
Stock dividends	[1]			(53,816)	(57,359)
Retained earnings at end of period		$ 31,557	$ 38,123	$ 31,557	$ 38,123
[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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
CONSOLIDATED STATEMENTS OF Comprehensive Earnings
Net earnings	$ 28,597	$ 26,141	$ 49,527	$ 46,464
Other comprehensive income (loss), before tax:
Foreign currency translation adjustments	(906)	(1,995)	(2,337)	(3,706)
Pension and postretirement reclassification adjustment:
Less: reclassification adjustment for (gains) losses to net earnings	(411)	(362)	(1,232)	(1,088)
Unrealized gains (losses) on postretirement and pension benefits	(411)	(362)	(1,232)	(1,088)
Investments:
Unrealized gains (losses) for the period on investments	(289)	108	710	108
Less: reclassification adjustment for (gains) losses to net earnings			4
Unrealized gains (losses) on investments	(289)	108	714	108
Derivatives:
Unrealized gains (losses) for the period on derivatives	1,288	(2,022)	4,411	(4,537)
Less: reclassification adjustment for (gains) losses to net earnings	(337)	1,628	646	3,302
Unrealized gains (losses) on derivatives	951	(394)	5,057	(1,235)
Total other comprehensive income (loss), before tax	(655)	(2,643)	2,202	(5,921)
Income tax benefit (expense) related to items of other comprehensive income	(91)	235	(1,643)	802
Total comprehensive earnings	27,851	23,733	50,086	41,345
Comprehensive earnings (loss) attributable to noncontrolling interests	(40)	(30)	(142)	80
Total comprehensive earnings attributable to Tootsie Roll Industries, Inc.	$ 27,891	$ 23,763	$ 50,228	$ 41,265

CONSOLIDATED STATEMENTS OF Cash

CONSOLIDATED STATEMENTS OF Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$ 49,527	$ 46,464
Adjustments to reconcile net earnings to net cash used in operating activities:
Depreciation and amortization	14,651	15,112
Deferred income taxes	23	170
Amortization of marketable security premiums	2,221	2,349
Changes in operating assets and liabilities:
Accounts receivable	(31,367)	(55,672)
Other receivables	2,622	(966)
Inventories	(2,826)	(7,804)
Prepaid expenses and other assets	3,678	11,364
Accounts payable and accrued liabilities	6,906	11,136
Income taxes payable	3	8,195
Postretirement health care benefits	(902)	(597)
Deferred compensation and other liabilities	2,496	509
Net cash from operating activities	47,032	30,260
CASH FLOWS FROM INVESTING ACTIVITIES:
Restricted cash		227
Capital expenditures	(13,067)	(12,421)
Purchases of trading securities	(3,064)	(3,333)
Sales of trading securities	645	2,275
Purchase of available for sale securities	(45,298)	(45,826)
Sale and maturity of available for sale securities	26,517	40,390
Net cash used in investing activities	(34,267)	(18,688)
CASH FLOWS FROM FINANCING ACTIVITIES:
Shares purchased and retired	(26,293)	(22,998)
Dividends paid in cash	(16,694)	(15,269)
Proceeds from bank loans	2,156
Repayment of bank loans	(2,339)	(87)
Net cash used in financing activities	(43,170)	(38,354)
Effect of exchange rate changes on cash	(1,501)	(2,600)
Decrease in cash and cash equivalents	(31,906)	(29,382)
Cash and cash equivalents at beginning of year	126,145	100,108
Cash and cash equivalents at end of year	94,239	70,726
Supplemental cash flow information:
Income taxes paid, net	22,622	11,766
Interest paid	19	15
Stock dividend issued	$ 61,671	$ 57,220

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Sep. 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 Form 10-K. Results of operations for the period ended September 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. In August 2016, the FASB issued ASU 2016-15, the amendments in this update address eight specific cash flow issues with the objective of reducing the existing diversity in practice. The effective date of the amendments to the standard is for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. 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	9 Months Ended
	Sep. 30, 2016
Average Shares Outstanding
Average Shares Outstanding	Note 2 — Average Shares Outstanding The average number of shares outstanding for nine months 2016 reflect stock purchases of 740 shares for $26,293 and a 3% stock dividend distributed on April 8, 2016. The average number of shares outstanding for nine months 2015 reflect stock purchases of 728 shares for $22,998 and a 3% stock dividend distributed on April 10, 2015.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 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 2013 through 2015. With few exceptions, the Company is no longer subject to examination by tax authorities for the year 2012 and prior. The consolidated effective tax rates were 30.6% and 31.5% in third quarter 2016 and 2015, respectively, and 31.1% and 30.2% in nine months 2016 and 2015, respectively. The lower effective tax rate in nine months 2015 compared to nine months 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	9 Months Ended
	Sep. 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 September 30, 2016, December 31, 2015 and September 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 securities principally consist of corporate and municipal bonds that are publicly traded, and its trading securities principally consist of equity 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 September 30, 2016, December 31, 2015 and September 30, 2015 and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value: Estimated Fair Value September 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 September 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 September 30, 2016, December 31, 2015 and September 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	9 Months Ended
	Sep. 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 September 30, 2016, December 31, 2015 and September 30, 2015: September 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 $ $ September 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 September 30, 2016 and September 30, 2015 are as follows: For Quarter Ended September 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 September 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 September 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 September 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	9 Months Ended
	Sep. 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 amount, 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 Consolidated Financial Statements and related notes and Management’s Discussion and Analysis of Financial Condition and Results of Operations incorporated into the Company’s 2015 Form 10-K.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Earnings (Loss)	9 Months Ended
	Sep. 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 September 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 September 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 Location of (Gain) Loss Comprehensive Income Components September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 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	9 Months Ended
	Sep. 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	9 Months Ended
	Sep. 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 September 30, 2016 and 2015 was 2.0 % and 2.2%, 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)	9 Months Ended
	Sep. 30, 2016
Fair Value Measurements
Schedule of financial assets and liabilities measured at fair value	Estimated Fair Value September 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 September 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)	9 Months Ended
	Sep. 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	September 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 $ $ September 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 September 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 September 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 September 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 September 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)	9 Months Ended
	Sep. 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 September 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 September 30, 2015 $ $ $ $ $ $
Amount reclassified from accumulated other comprehensive income	Details about Accumulated Other Quarter Ended Year to Date Ended Location of (Gain) Loss Comprehensive Income Components September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Average Shares Outstanding
Stock purchases (in shares)			740	728
Purchase of common shares			$ 26,293	$ 22,998
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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Jun. 30, 2015
Effective income tax rate differs from the statutory rate
Effective income tax rate (as a percent)	30.60%	31.50%	31.10%	30.20%
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	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
Fair value measurements
Cash and cash equivalents	$ 94,239	$ 126,145	$ 70,726
Available for sale securities	151,776	134,501	134,542
Trading securities	66,085	60,584	71,371
Total assets measured at fair value	314,802	318,875	272,730
Foreign currency forward contracts
Fair value measurements
Derivative instruments, net	(532)	(2,626)	(2,977)
Commodity futures contracts
Fair value measurements
Derivative instruments, net	3,234	271	(932)
Level 1
Fair value measurements
Cash and cash equivalents	94,239	126,145	70,726
Available for sale securities	2,429	2,430	2,453
Trading securities	66,085	60,584	71,371
Total assets measured at fair value	165,987	189,430	143,618
Level 1 | Commodity futures contracts
Fair value measurements
Derivative instruments, net	3,234	271	(932)
Level 2
Fair value measurements
Available for sale securities	149,347	132,071	132,089
Total assets measured at fair value	148,815	129,445	129,112
Level 2 | Foreign currency forward contracts
Fair value measurements
Derivative instruments, net	$ (532)	$ (2,626)	$ (2,977)

Fair Value Measurements - Recur

Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Sep. 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	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
Derivative contracts
Assets	$ 3,256	$ 484	$ 49
Liabilities	(554)	(2,839)	(3,958)
Derivatives designated as hedging instruments: | Foreign currency forward contracts
Derivative contracts
Notional Amounts	5,684	15,668	22,500
Liabilities	(532)	(2,626)	(2,977)
Derivatives designated as hedging instruments: | Commodity futures contracts
Derivative contracts
Notional Amounts	11,047	13,202	10,263
Assets	3,256	484	49
Liabilities	$ (22)	$ (213)	$ (981)

Derivative Instruments and He25

Derivative Instruments and Hedging Activities - OCI (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Effect of derivative instruments on earnings
Gain (Loss) Recognized in OCI	$ 1,288	$ (2,022)	$ 4,411	$ (4,537)
Gain (Loss) Reclassified from Accumulated OCI into Earnings	28,637	26,171	49,669	46,384
Reclassified from Accumulated OCI into Earnings
Effect of derivative instruments on earnings
Gain (Loss) Reclassified from Accumulated OCI into Earnings	337	(1,628)	(646)	(3,302)
Foreign currency forward contracts
Effect of derivative instruments on earnings
Gain (Loss) Recognized in OCI	(77)	(1,195)	613	(2,772)
Foreign currency forward contracts | Reclassified from Accumulated OCI into Earnings
Effect of derivative instruments on earnings
Gain (Loss) Reclassified from Accumulated OCI into Earnings	(456)	(712)	(1,482)	(1,733)
Commodity futures contracts
Effect of derivative instruments on earnings
Gain (Loss) Recognized in OCI	1,365	(827)	3,798	(1,765)
Commodity futures contracts | Reclassified from Accumulated OCI into Earnings
Effect of derivative instruments on earnings
Gain (Loss) Reclassified from Accumulated OCI into Earnings	$ 793	$ (916)	$ 836	$ (1,569)

Pension Plans (Details)

Pension Plans (Details) - Multi-employer defined benefit pension plan	9 Months Ended
	Sep. 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	9 Months Ended
	Sep. 30, 2016	Sep. 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	705,330	$ 693,111
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	391	(1,769)
Reclassifications from accumulated other comprehensive loss	946	1,106
Other comprehensive earnings (loss) net of tax	1,337	(663)
Balance at the end of the period	(338)	(1,899)
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	2,424	(1,125)
Reclassifications from accumulated other comprehensive loss	(533)	1,000
Other comprehensive earnings (loss) net of tax	1,891	(125)
Balance at the end of the period	2,064	(595)
Investments
Accumulated other comprehensive earnings (loss), net of tax
Balance at the beginning of the period	(605)	(332)
Other comprehensive earnings (loss) before reclassifications	451	69
Reclassifications from accumulated other comprehensive loss	3
Other comprehensive earnings (loss) net of tax	454	69
Balance at the end of the period	(151)	(263)
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	(786)	(694)
Other comprehensive earnings (loss) net of tax	(786)	(694)
Balance at the end of the period	5,601	5,745
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	(2,337)	(3,706)
Other comprehensive earnings (loss) net of tax	(2,337)	(3,706)
Balance at the end of the period	(23,981)	(21,205)
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	929	(6,531)
Reclassifications from accumulated other comprehensive loss	(370)	1,412
Other comprehensive earnings (loss) net of tax	559	(5,119)
Balance at the end of the period	$ (16,805)	$ (18,217)

Accumulated Other Comprehensi28

Accumulated Other Comprehensive Earnings (Loss) - Reclassification from AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Other income, net	$ (1,943)	$ 2,879	$ (4,147)	$ 1,085
Product cost of goods sold	114,748	117,046	245,581	252,924
Selling, marketing and administrative expenses	32,101	26,338	81,772	78,161
Total before tax	(41,216)	(38,149)	(71,933)	(66,541)
Tax (expense) benefit	12,619	12,008	22,406	20,077
Net earnings	(28,597)	(26,141)	(49,527)	(46,464)
Reclassified from Accumulated OCI into Earnings
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Total before tax	(748)	1,266	(582)	2,214
Tax (expense) benefit	271	(458)	212	(802)
Net earnings	(477)	808	(370)	1,412
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	456	712	1,482	1,733
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	(793)	916	(836)	1,569
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	(202)	(177)	(604)	(533)
Selling, marketing and administrative expenses	$ (209)	$ (185)	$ (628)	$ (555)

Bank Loans (Details)

Bank Loans (Details)	9 Months Ended
	Sep. 30, 2016	Sep. 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)	2.00%	2.20%