Tootsie Roll Industries (TR) 10-Q 7 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Sep. 30, 2017shares
Entity Registrant Name	TOOTSIE ROLL INDUSTRIES INC
Entity Central Index Key	98,677
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
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	2,017
Document Fiscal Period Focus	Q3
Common Stock
Entity Common Stock, Shares Outstanding	38,046,216
Class B Common Stock
Entity Common Stock, Shares Outstanding	24,917,501

CONSOLIDATED STATEMENTS OF Fina

CONSOLIDATED STATEMENTS OF Financial Position - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016
CURRENT ASSETS:
Cash & cash equivalents	$ 49,512	$ 119,145	$ 94,239
Restricted cash	400	382	409
Investments	74,272	67,513	27,905
Trade accounts receivable, less allowances of $3,225, $1,884 & $3,274	95,341	42,964	81,718
Other receivables	6,405	3,299	1,552
Inventories:
Finished goods & work-in-process	41,273	34,631	36,173
Raw material & supplies	26,767	22,900	28,613
Prepaid expenses	2,489	7,146	5,077
Deferred income taxes		1,320	3,149
Total current assets	296,459	299,300	278,835
PROPERTY, PLANT & EQUIPMENT, at cost:
Land	22,222	22,081	22,155
Buildings	116,555	116,398	114,473
Machinery & equipment	369,753	369,802	355,059
Construction in progress	14,328	3,546	17,511
Property, plant and equipment, gross	522,858	511,827	509,198
Less-accumulated depreciation	344,809	330,922	326,609
Net property, plant and equipment	178,049	180,905	182,589
OTHER ASSETS:
Goodwill	73,237	73,237	73,237
Trademarks	175,024	175,024	175,024
Investments	193,991	164,665	189,956
Split dollar officer life insurance	26,042	26,042	26,042
Prepaid expenses and other	34	602	1,526
Deferred income taxes		326	275
Total other assets	468,328	439,896	466,060
Total assets	942,836	920,101	927,484
CURRENT LIABILITIES:
Accounts payable	14,037	10,320	13,366
Bank loan	404	336	164
Dividends payable	5,667	5,573	5,578
Accrued liabilities	50,552	46,300	52,354
Postretirement health care	513	513	448
Income taxes payable	7,636		3,955
Deferred income taxes		519	666
Total current liabilities	78,809	63,561	76,531
NONCURRENT LIABILITIES:
Deferred income taxes	44,316	46,060	49,276
Bank loans		230	283
Postretirement health care	11,941	11,615	11,283
Industrial development bonds	7,500	7,500	7,500
Liability for uncertain tax positions	4,811	5,185	4,939
Deferred compensation and other liabilities	80,936	74,412	72,119
Total noncurrent liabilities	149,504	145,002	145,400
TOOTSIE ROLL INDUSTRIES, INC. SHAREHOLDERS' EQUITY:
Capital in excess of par value	660,779	646,768	649,514
Retained earnings	30,890	43,833	31,557
Accumulated other comprehensive loss	(18,921)	(20,246)	(16,805)
Treasury stock (at cost)- 85, 83 & 83 shares, respectively	(1,992)	(1,992)	(1,992)
Total Tootsie Roll Industries, Inc. shareholders' equity	714,481	711,364	705,330
Noncontrolling interests	42	174	223
Total equity	714,523	711,538	705,553
Total liabilities and shareholders' equity	942,836	920,101	927,484
Common Stock
TOOTSIE ROLL INDUSTRIES, INC. SHAREHOLDERS' EQUITY:
Common stock, $.69-4/9 par value- 120,000 shares authorized; 38,046, 37,701 & 37,775, respectively, issued. Class B common stock, $.69-4/9 par value- 40,000 shares authorized; 24,918, 24,221 & 24,226, respectively, issued	26,421	26,181	26,232
Class B Common Stock
TOOTSIE ROLL INDUSTRIES, INC. SHAREHOLDERS' EQUITY:
Common stock, $.69-4/9 par value- 120,000 shares authorized; 38,046, 37,701 & 37,775, respectively, issued. Class B common stock, $.69-4/9 par value- 40,000 shares authorized; 24,918, 24,221 & 24,226, respectively, issued	$ 17,304	$ 16,820	$ 16,824

CONSOLIDATED STATEMENTS OF Fin3

CONSOLIDATED STATEMENTS OF Financial Position (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016
Trade accounts receivable, allowances	$ 3,225	$ 1,884	$ 3,274
Treasury stock, shares	85,000	83,000	83,000
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	38,046,000	37,701,000	37,775,000
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	24,918,000	24,221,000	24,226,000

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, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
CONSOLIDATED STATEMENTS OF Earnings and Retained Earnings
Net product sales		$ 182,173	$ 185,473	$ 390,495	$ 393,094
Rental and royalty revenue		842	884	2,771	2,827
Total revenue		183,015	186,357	393,266	395,921
Product cost of goods sold		114,848	114,748	245,523	245,581
Rental and royalty cost		240	235	757	782
Total costs		115,088	114,983	246,280	246,363
Product gross margin		67,325	70,725	144,972	147,513
Rental and royalty gross margin		602	649	2,014	2,045
Total gross margin		67,927	71,374	146,986	149,558
Selling, marketing and administrative expenses		33,095	32,101	86,122	81,772
Earnings from operations		34,832	39,273	60,864	67,786
Other income (loss), net		4,121	1,943	8,565	4,147
Earnings before income taxes		38,953	41,216	69,429	71,933
Provision for income taxes		12,066	12,619	20,681	22,406
Net earnings		26,887	28,597	48,748	49,527
Less: Net earnings (loss) attributable to noncontrolling interests		(46)	(40)	(131)	(142)
Net earnings attributable to Tootsie Roll Industries, Inc.		$ 26,933	$ 28,637	$ 48,879	$ 49,669
Net earnings attributable to Tootsie Roll Industries, Inc. per share (in dollars per share)		$ 0.43	$ 0.45	$ 0.77	$ 0.77
Dividends per share (in dollars per share)		$ 0.09	$ 0.09	$ 0.27	$ 0.27
Average number of shares outstanding (in shares)		62,986	64,021	63,286	64,205
Retained earnings at beginning of period		$ 9,615	$ 8,491	$ 43,833	$ 52,349
Net earnings attributable to Tootsie Roll Industries, Inc.		26,933	28,637	48,879	49,669
Cash dividends		(5,658)	(5,571)	(16,898)	(16,645)
Stock dividends	[1]			(44,924)	(53,816)
Retained earnings at end of period		$ 30,890	$ 31,557	$ 30,890	$ 31,557
[1]	Does not include 3% stock dividend to shareholders of record on 3/7/17 and 3/8/16.

CONSOLIDATED STATEMENTS OF Ear5

CONSOLIDATED STATEMENTS OF Earnings and Retained Earnings (Parenthetical)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
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, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
CONSOLIDATED STATEMENTS OF Comprehensive Earnings
Net earnings	$ 26,887	$ 28,597	$ 48,748	$ 49,527
Other comprehensive income (loss), before tax:
Foreign currency translation adjustments	(216)	(906)	2,875	(2,337)
Pension and postretirement reclassification adjustment:
Unrealized gains (losses) for the period on postretirement and pension benefits	4		95
Less: reclassification adjustment for (gains) losses to net earnings	(366)	(411)	(1,097)	(1,232)
Unrealized gains (losses) on postretirement and pension benefits	(362)	(411)	(1,002)	(1,232)
Investments:
Unrealized gains (losses) for the period on investments	121	(289)	500	710
Less: reclassification adjustment for (gains) losses to net earnings				4
Unrealized gains (losses) on investments	121	(289)	500	714
Derivatives:
Unrealized gains (losses) for the period on derivatives	19	1,288	(1,735)	4,411
Less: reclassification adjustment for (gains) losses to net earnings	28	(337)	(109)	646
Unrealized gains (losses) on derivatives	47	951	(1,844)	5,057
Total other comprehensive income (loss), before tax	(410)	(655)	529	2,202
Income tax benefit (expense) related to items of other comprehensive income	70	(91)	796	(1,643)
Total comprehensive earnings	26,547	27,851	50,073	50,086
Comprehensive earnings (loss) attributable to noncontrolling interests	(46)	(40)	(131)	(142)
Total comprehensive earnings attributable to Tootsie Roll Industries, Inc.	$ 26,593	$ 27,891	$ 50,204	$ 50,228

CONSOLIDATED STATEMENTS OF Cash

CONSOLIDATED STATEMENTS OF Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$ 48,748	$ 49,527
Adjustments to reconcile net earnings to net cash used in operating activities:
Depreciation and amortization	14,364	14,651
Deferred income taxes	153	23
Amortization of marketable security premiums	1,840	2,221
Changes in operating assets and liabilities:
Accounts receivable	(51,270)	(31,367)
Other receivables	(4,265)	2,622
Inventories	(10,018)	(2,826)
Prepaid expenses and other assets	3,313	3,678
Accounts payable and accrued liabilities	8,249	6,906
Income taxes payable	8,706	3
Postretirement health care benefits	(677)	(902)
Deferred compensation and other liabilities	(723)	2,496
Net cash from operating activities	18,420	47,032
CASH FLOWS FROM INVESTING ACTIVITIES:
Restricted cash	(17)
Capital expenditures	(11,699)	(13,067)
Purchases of trading securities	(3,387)	(3,064)
Sales of trading securities	3,544	645
Purchase of available for sale securities	(51,935)	(45,298)
Sale and maturity of available for sale securities	21,328	26,517
Net cash used in investing activities	(42,166)	(34,267)
CASH FLOWS FROM FINANCING ACTIVITIES:
Shares purchased and retired	(30,027)	(26,293)
Dividends paid in cash	(16,965)	(16,694)
Proceeds from bank loans	1,182	2,156
Repayment of bank loans	(1,345)	(2,339)
Net cash used in financing activities	(47,155)	(43,170)
Effect of exchange rate changes on cash	1,268	(1,501)
Decrease in cash and cash equivalents	(69,633)	(31,906)
Cash and cash equivalents at beginning of year	119,145	126,145
Cash and cash equivalents at end of year	49,512	94,239
Supplemental cash flow information:
Income taxes paid	12,360	22,622
Interest paid	49	19
Stock dividend issued	$ 69,739	$ 61,671

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
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 Form 10-K for the year ended December 31, 2016 (the “2016 Form 10-K”). Results of operations for the period ended September 30, 2017 are not necessarily indicative of results to be expected for the year to end December 31, 2017 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. Although the Company is continuing its evaluation of the new guidance, based upon the current status of the evaluation, the impact of adoption is not expected to be material to the consolidated financial statements. The Company will use the modified retrospective method of adoption in the first quarter of 2018. 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 standard is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. The Company does not have any significant licenses of intellectual property and 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, which includes amendments addressing 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. In March 2017, the FASB issued ASU 2017-07, which requires employers who offer defined benefit and postretirement benefit plans to report the service cost component in the same line item as other compensation costs arising from services rendered by employees during the reporting period. The other components of net benefit costs will be presented in the income statement separately from the service cost and outside of a subtotal of income from operations. In addition, only the service cost component may be eligible for capitalization where applicable. This guidance is effective for annual periods beginning after December 15, 2017. The Company is currently evaluating this new guidance to determine the impact it will have on its consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, guidance that amends hedge accounting. Under the new guidance, more hedging strategies will be eligible for hedge accounting and the application of hedge accounting is simplified. The new guidance amends presentation and disclosure requirements, and how effectiveness is assessed. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those years. Early adoption is permitted. The Company is currently evaluating the impact that the new guidance will have on its consolidated financial statements. Recently Adopted Pronouncements In November 2015, the FASB issued ASU 2015-17 which simplifies the presentation of deferred income taxes by requiring that deferred tax assets and liabilities be classified as non-current in a classified statement of financial position. This guidance was adopted on January 1, 2017 on a prospective basis. Prior period balances have not been adjusted.

Average Shares Outstanding

Average Shares Outstanding	9 Months Ended
	Sep. 30, 2017
Average Shares Outstanding
Average Shares Outstanding	Note 2 — Average Shares Outstanding The average number of shares outstanding for nine months 2017 reflects stock purchases of 809 shares for $30,027 and a 3% stock dividend of 1,850 shares distributed on April 17, 2017. The average number of shares outstanding for nine months 2016 reflects stock purchases of 740 shares for $26,293 and a 3% stock dividend of 1,819 shares distributed on April 8, 2016.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2017
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 2014 through 2016. With few exceptions, the Company is no longer subject to examination by tax authorities for the year 2013 and prior. The consolidated effective tax rates were 31.0% and 30.6% in third quarter 2017 and 2016, respectively, and 29.8% and 31.1% in nine months 2017 and 2016, respectively. The lower effective tax rate for nine months 2017 compared to nine months 2016 principally reflects certain benefits resulting from filing amended federal and state income tax returns, including a state income tax carry forward.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2017
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, 2017, December 31, 2016 and September 30, 2016, 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 variable rate demand notes with interest rates that generally reset weekly and the security can be “put” back and sold weekly. 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, 2017, December 31, 2016 and September 30, 2016 and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value: Estimated Fair Value September 30, 2017 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 49,512 $ 49,512 $ - $ - Available for sale securities 193,169 2,402 190,767 - Foreign currency forward contracts 147 - 147 - Commodity futures contracts (364) (364) - - Trading securities 75,094 75,094 - - Total assets measured at fair value $ 317,558 $ 126,644 $ 190,914 $ - Estimated Fair Value December 31, 2016 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 119,145 $ 119,145 $ - $ - Available for sale securities 164,183 2,419 161,764 - Foreign currency forward contracts (119) - (119) - Commodity futures contracts, net 1,746 1,746 - - Trading securities 67,995 67,995 - - Total assets measured at fair value $ 352,950 $ 191,305 $ 161,645 $ - Estimated Fair Value September 30, 2016 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 94,239 $ 94,239 $ - $ - Available for sale securities 151,776 2,429 149,347 - Foreign currency forward contracts (532) - (532) - Commodity futures contracts 3,234 3,234 - - Trading securities 66,085 66,085 - - Total assets measured at fair value $ 314,802 $ 165,987 $ 148,815 $ - The fair value of the Company’s industrial revenue development bonds at September 30, 2017, December 31, 2016 and September 30, 2016 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, 2017
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 hedge accounting for its foreign currency and commodity derivative instruments as discussed above. 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. Approximately 43% of this accumulated comprehensive net gain is expected to be reclassified to net earnings in the next 12 months. Substantially all amounts reported in accumulated other comprehensive loss for foreign currency derivatives are expected to be reclassified to other income, net in the next 12 months. The following table summarizes the Company’s outstanding derivative contracts and their effects on its Condensed Consolidated Statements of Financial Position at September 30, 2017, December 31, 2016 and September 30, 2016: September 30, 2017 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency forward contracts $ 2,059 $ 147 $ - Commodity futures contracts 13,616 56 (420) Total derivatives $ 203 $ (420) December 31, 2016 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency forward contracts $ 2,357 $ - $ (119) Commodity futures contracts 10,811 1,932 (186) Total derivatives $ 1,932 $ (305) September 30, 2016 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency forward contracts $ 5,684 $ - $ (532) Commodity futures contracts 11,047 3,256 (22) Total derivatives $ 3,256 $ (554) 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, 2017 and September 30, 2016 are as follows: For Quarter Ended September 30, 2017 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 $ 118 $ 55 $ - Commodity futures contracts (99) (83) - Total $ 19 $ (28) $ - 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 $ (77) $ (456) $ - Commodity futures contracts 1,365 793 - Total $ 1,288 $ 337 $ - For Year to Date Ended September 30, 2017 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 $ 266 $ 1 $ - Commodity futures contracts (2,001) 108 - Total $ (1,735) $ 109 $ - 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 $ 613 $ (1,482) $ - Commodity futures contracts 3,798 836 - Total $ 4,411 $ (646) $ -

Pension Plans

Pension Plans	9 Months Ended
	Sep. 30, 2017
Pension Plans
Pension Plans	Note 6 — Pension Plans During 2017 and 2016, the Company received updated notices that the Bakery and Confectionery Union and Industry International 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 2030. The Company has been advised that its withdrawal liability would have been $72,700 if it had withdrawn from the Plan during 2016. 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 and new “hybrid plan” option discussed in Management’s Discussion and Analysis of Financial Condition and Results of Operations (Item 2) 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 2016 Form 10-K.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Earnings (Loss)	9 Months Ended
	Sep. 30, 2017
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, 2016 $ (25,460) $ (697) $ (76) $ 1,114 $ 4,873 $ (20,246) Other comprehensive earnings (loss) before reclassifications 2,875 319 170 (1,276) 6 2,094 Reclassifications from accumulated other comprehensive loss - - - (69) (700) (769) Other comprehensive earnings (loss) net of tax 2,875 319 170 (1,345) (694) 1,325 Balance at September 30, 2017 $ (22,585) $ (378) $ 94 $ (231) $ 4,179 $ (18,921) Accumulated Foreign Foreign Postretirement Other Currency Currency Commodity and Pension Comprehensive Translation Investments Derivatives Derivatives Benefits Earnings (Loss) Balance at December 31, 2015 $ (21,644) $ (605) $ (1,675) $ 173 $ 6,387 $ (17,364) Other comprehensive earnings (loss) before reclassifications (2,337) 451 391 2,424 - 929 Reclassifications from accumulated other comprehensive loss - 3 946 (533) (786) (370) Other comprehensive earnings (loss) net of tax (2,337) 454 1,337 1,891 (786) 559 Balance at September 30, 2016 $ (23,981) $ (151) $ (338) $ 2,064 $ 5,601 $ (16,805) 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, 2017 September 30, 2016 September 30, 2017 September 30, 2016 Recognized in Earnings Investments $ - $ - $ - $ 4 Other income, net Foreign currency derivatives (55) 456 (1) 1,482 Other income, net Commodity derivatives 83 (793) (108) (836) Product cost of goods sold Postretirement and pension benefits (187) (209) (560) (628) Selling, marketing and administrative expenses Postretirement and pension benefits (179) (202) (537) (604) Product cost of goods sold Total before tax (338) (748) (1,206) (582) Tax (expense) benefit 123 271 437 212 Net of tax $ (215) $ (477) $ (769) $ (370)

Restricted Cash

Restricted Cash	9 Months Ended
	Sep. 30, 2017
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, 2017
Bank Loans
Bank Loans	Note 9 — Bank Loans Bank loans comprise borrowings by the Company’s majority-owned Spanish companies which are held by international banks. The weighted-average interest rate as of September 30, 2017 and 2016 was 1.9 % and 2.0%, respectively, and maturity dates range from 1 to 2 years for both periods.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2017
Fair Value Measurements
Schedule of financial assets and liabilities measured at fair value	Estimated Fair Value September 30, 2017 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 49,512 $ 49,512 $ - $ - Available for sale securities 193,169 2,402 190,767 - Foreign currency forward contracts 147 - 147 - Commodity futures contracts (364) (364) - - Trading securities 75,094 75,094 - - Total assets measured at fair value $ 317,558 $ 126,644 $ 190,914 $ - Estimated Fair Value December 31, 2016 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 119,145 $ 119,145 $ - $ - Available for sale securities 164,183 2,419 161,764 - Foreign currency forward contracts (119) - (119) - Commodity futures contracts, net 1,746 1,746 - - Trading securities 67,995 67,995 - - Total assets measured at fair value $ 352,950 $ 191,305 $ 161,645 $ - Estimated Fair Value September 30, 2016 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 94,239 $ 94,239 $ - $ - Available for sale securities 151,776 2,429 149,347 - Foreign currency forward contracts (532) - (532) - Commodity futures contracts 3,234 3,234 - - Trading securities 66,085 66,085 - - Total assets measured at fair value $ 314,802 $ 165,987 $ 148,815 $ -

Derivative Instruments and He18

Derivative Instruments and Hedging Activities (Tables)	9 Months Ended
	Sep. 30, 2017
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, 2017 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency forward contracts $ 2,059 $ 147 $ - Commodity futures contracts 13,616 56 (420) Total derivatives $ 203 $ (420) December 31, 2016 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency forward contracts $ 2,357 $ - $ (119) Commodity futures contracts 10,811 1,932 (186) Total derivatives $ 1,932 $ (305) September 30, 2016 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency forward contracts $ 5,684 $ - $ (532) Commodity futures contracts 11,047 3,256 (22) Total derivatives $ 3,256 $ (554)
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, 2017 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 $ 118 $ 55 $ - Commodity futures contracts (99) (83) - Total $ 19 $ (28) $ - 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 $ (77) $ (456) $ - Commodity futures contracts 1,365 793 - Total $ 1,288 $ 337 $ - For Year to Date Ended September 30, 2017 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 $ 266 $ 1 $ - Commodity futures contracts (2,001) 108 - Total $ (1,735) $ 109 $ - 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 $ 613 $ (1,482) $ - Commodity futures contracts 3,798 836 - Total $ 4,411 $ (646) $ -

Accumulated Other Comprehensi19

Accumulated Other Comprehensive Earnings (Loss) (Tables)	9 Months Ended
	Sep. 30, 2017
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, 2016 $ (25,460) $ (697) $ (76) $ 1,114 $ 4,873 $ (20,246) Other comprehensive earnings (loss) before reclassifications 2,875 319 170 (1,276) 6 2,094 Reclassifications from accumulated other comprehensive loss - - - (69) (700) (769) Other comprehensive earnings (loss) net of tax 2,875 319 170 (1,345) (694) 1,325 Balance at September 30, 2017 $ (22,585) $ (378) $ 94 $ (231) $ 4,179 $ (18,921) Accumulated Foreign Foreign Postretirement Other Currency Currency Commodity and Pension Comprehensive Translation Investments Derivatives Derivatives Benefits Earnings (Loss) Balance at December 31, 2015 $ (21,644) $ (605) $ (1,675) $ 173 $ 6,387 $ (17,364) Other comprehensive earnings (loss) before reclassifications (2,337) 451 391 2,424 - 929 Reclassifications from accumulated other comprehensive loss - 3 946 (533) (786) (370) Other comprehensive earnings (loss) net of tax (2,337) 454 1,337 1,891 (786) 559 Balance at September 30, 2016 $ (23,981) $ (151) $ (338) $ 2,064 $ 5,601 $ (16,805)
Amount reclassified from accumulated other comprehensive income (loss)	Details about Accumulated Other Quarter Ended Year to Date Ended Location of (Gain) Loss Comprehensive Income Components September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 Recognized in Earnings Investments $ - $ - $ - $ 4 Other income, net Foreign currency derivatives (55) 456 (1) 1,482 Other income, net Commodity derivatives 83 (793) (108) (836) Product cost of goods sold Postretirement and pension benefits (187) (209) (560) (628) Selling, marketing and administrative expenses Postretirement and pension benefits (179) (202) (537) (604) Product cost of goods sold Total before tax (338) (748) (1,206) (582) Tax (expense) benefit 123 271 437 212 Net of tax $ (215) $ (477) $ (769) $ (370)

Average Shares Outstanding (Det

Average Shares Outstanding (Details) - USD ($) shares in Thousands, $ in Thousands	Apr. 17, 2017	Apr. 08, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Average Shares Outstanding
Stock purchases (in shares)					809	740
Purchase of common shares					$ 30,027	$ 26,293
Stock dividends (as a percent)			3.00%	3.00%	3.00%	3.00%
Stock dividend shares distributed	1,850	1,819

Income Taxes - Income tax rates

Income Taxes - Income tax rates (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Effective income tax rate differs from the statutory rate
Effective income tax rate (as a percent)	31.00%	30.60%	29.80%	31.10%

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Fair value measured on a recurring basis - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016
Fair value measurements
Cash and cash equivalents	$ 49,512	$ 119,145	$ 94,239
Available for sale securities	193,169	164,183	151,776
Trading securities	75,094	67,995	66,085
Total assets measured at fair value	317,558	352,950	314,802
Foreign currency forward contracts
Fair value measurements
Derivative instruments, net	147	(119)	(532)
Commodity futures contracts
Fair value measurements
Derivative instruments, net	(364)	1,746	3,234
Level 1
Fair value measurements
Cash and cash equivalents	49,512	119,145	94,239
Available for sale securities	2,402	2,419	2,429
Trading securities	75,094	67,995	66,085
Total assets measured at fair value	126,644	191,305	165,987
Level 1 | Commodity futures contracts
Fair value measurements
Derivative instruments, net	(364)	1,746	3,234
Level 2
Fair value measurements
Available for sale securities	190,767	161,764	149,347
Total assets measured at fair value	190,914	161,645	148,815
Level 2 | Foreign currency forward contracts
Fair value measurements
Derivative instruments, net	$ 147	$ (119)	$ (532)

Fair Value Measurements - Recur

Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016
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	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016
Derivative contracts
Accumulated comprehensive net gain to be reclassified (as a percentage)	43.00%
Foreign currency forward contracts
Derivative contracts
Reclassification period	12 months
Commodity futures contracts
Derivative contracts
Reclassification period	12 months
Derivatives designated as hedging instruments:
Derivative contracts
Assets	$ 203	$ 1,932	$ 3,256
Liabilities	(420)	(305)	(554)
Derivatives designated as hedging instruments: | Foreign currency forward contracts
Derivative contracts
Notional Amounts	2,059	2,357	5,684
Assets	147
Liabilities		(119)	(532)
Derivatives designated as hedging instruments: | Commodity futures contracts
Derivative contracts
Notional Amounts	13,616	10,811	11,047
Assets	56	1,932	3,256
Liabilities	$ (420)	$ (186)	$ (22)

Derivative Instruments and He25

Derivative Instruments and Hedging Activities - OCI (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Effect of derivative instruments on earnings
Gain (Loss) Recognized in OCI	$ 19	$ 1,288	$ (1,735)	$ 4,411
Reclassified from Accumulated OCI into Earnings
Effect of derivative instruments on earnings
Gain (Loss) Reclassified from Accumulated OCI into Earnings	(28)	337	109	(646)
Foreign currency forward contracts
Effect of derivative instruments on earnings
Gain (Loss) Recognized in OCI	118	(77)	266	613
Foreign currency forward contracts | Reclassified from Accumulated OCI into Earnings
Effect of derivative instruments on earnings
Gain (Loss) Reclassified from Accumulated OCI into Earnings	55	(456)	1	(1,482)
Commodity futures contracts
Effect of derivative instruments on earnings
Gain (Loss) Recognized in OCI	(99)	1,365	(2,001)	3,798
Commodity futures contracts | Reclassified from Accumulated OCI into Earnings
Effect of derivative instruments on earnings
Gain (Loss) Reclassified from Accumulated OCI into Earnings	$ (83)	$ 793	$ 108	$ 836

Pension Plans (Details)

Pension Plans (Details) $ in Thousands	Sep. 30, 2017USD ($)
Multi-employer defined benefit pension plan
Multiemployer Plans [Line Items]
Estimated liability upon withdrawal from plan	$ 72,700

Accumulated Other Comprehensi27

Accumulated Other Comprehensive Earnings (Loss) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Accumulated other comprehensive earnings (loss), net of tax
Balance at the beginning of the period	$ 711,364
Balance at the end of the period	714,481	$ 705,330
Foreign Currency Derivatives | Foreign currency forward contracts
Accumulated other comprehensive earnings (loss), net of tax
Balance at the beginning of the period	(76)	(1,675)
Other comprehensive earnings (loss) before reclassifications	170	391
Reclassifications from accumulated other comprehensive loss		946
Other comprehensive earnings (loss) net of tax	170	1,337
Balance at the end of the period	94	(338)
Foreign Currency Derivatives | Commodity futures contracts
Accumulated other comprehensive earnings (loss), net of tax
Balance at the beginning of the period	1,114	173
Other comprehensive earnings (loss) before reclassifications	(1,276)	2,424
Reclassifications from accumulated other comprehensive loss	(69)	(533)
Other comprehensive earnings (loss) net of tax	(1,345)	1,891
Balance at the end of the period	(231)	2,064
Investments
Accumulated other comprehensive earnings (loss), net of tax
Balance at the beginning of the period	(697)	(605)
Other comprehensive earnings (loss) before reclassifications	319	451
Reclassifications from accumulated other comprehensive loss		3
Other comprehensive earnings (loss) net of tax	319	454
Balance at the end of the period	(378)	(151)
Postretirement and Pension Benefits
Accumulated other comprehensive earnings (loss), net of tax
Balance at the beginning of the period	4,873	6,387
Other comprehensive earnings (loss) before reclassifications	6
Reclassifications from accumulated other comprehensive loss	(700)	(786)
Other comprehensive earnings (loss) net of tax	(694)	(786)
Balance at the end of the period	4,179	5,601
Foreign Currency Translation Adjustment
Accumulated other comprehensive earnings (loss), net of tax
Balance at the beginning of the period	(25,460)	(21,644)
Other comprehensive earnings (loss) before reclassifications	2,875	(2,337)
Other comprehensive earnings (loss) net of tax	2,875	(2,337)
Balance at the end of the period	(22,585)	(23,981)
Accumulated Other Comprehensive Earnings ( Loss )
Accumulated other comprehensive earnings (loss), net of tax
Balance at the beginning of the period	(20,246)	(17,364)
Other comprehensive earnings (loss) before reclassifications	2,094	929
Reclassifications from accumulated other comprehensive loss	(769)	(370)
Other comprehensive earnings (loss) net of tax	1,325	559
Balance at the end of the period	$ (18,921)	$ (16,805)

Accumulated Other Comprehensi28

Accumulated Other Comprehensive Earnings (Loss) - Reclassification from AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Other income, net	$ (4,121)	$ (1,943)	$ (8,565)	$ (4,147)
Product cost of goods sold	114,848	114,748	245,523	245,581
Selling, marketing and administrative expenses	33,095	32,101	86,122	81,772
Total before tax	(38,953)	(41,216)	(69,429)	(71,933)
Tax (expense) benefit	12,066	12,619	20,681	22,406
Net earnings	(26,887)	(28,597)	(48,748)	(49,527)
Reclassified from Accumulated OCI into Earnings
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Total before tax	(338)	(748)	(1,206)	(582)
Tax (expense) benefit	123	271	437	212
Net earnings	(215)	(477)	(769)	(370)
Foreign Currency Derivatives | Foreign currency forward contracts | Reclassified from Accumulated OCI into Earnings
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Other income, net	(55)	456	(1)	1,482
Foreign Currency 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	83	(793)	(108)	(836)
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	(179)	(202)	(537)	(604)
Selling, marketing and administrative expenses	$ (187)	$ (209)	$ (560)	$ (628)

Bank Loans (Details)

Bank Loans (Details) - Spanish Companies	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Bank Loans
Average weighted interest rate (as a percent)	1.90%	2.00%
Minimum
Bank Loans
Maturity period	1 year	1 year
Maximum
Bank Loans
Maturity period	2 years	2 years