Tootsie Roll Industries (TR) 10-Q8 Nov 222022 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2022 shares
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2022
Entity File Number	1-1361
Entity Registrant Name	TOOTSIE ROLL INDUSTRIES INC
Entity Incorporation, State or Country Code	VA
Entity Tax Identification Number	22-1318955
Entity Address, Address Line One	7401 South Cicero Avenue
Entity Address, City or Town	Chicago
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60629
City Area Code	773
Local Phone Number	838-3400
Title of 12(b) Security	Common Stock, par value $0.69-4/9 per share
Trading Symbol	TR
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0000098677
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false
Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding	40,293,792
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding	28,622,421

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021
CURRENT ASSETS:
Cash and cash equivalents	$ 57,216	$ 105,840	$ 76,210
Restricted cash	332	386	393
Investments	88,510	39,968	39,491
Accounts receivable trade, less allowances of $2,949, $2,281 and $2,706	82,315	54,921	80,877
Other receivables	4,120	3,920	3,392
Inventories:
Finished goods and work-in-process	48,758	31,431	46,887
Raw materials and supplies	40,797	24,074	24,948
Prepaid expenses	2,018	7,761	5,706
Total current assets	324,066	268,301	277,904
PROPERTY, PLANT AND EQUIPMENT, at cost:
Land	21,673	21,704	21,710
Buildings	130,131	130,158	123,844
Machinery and equipment	446,487	446,777	421,233
Construction in progress	32,409	15,344	39,687
Operating lease right-of-use assets	4,746	7,419	7,617
Property, plant and equipment, gross	635,446	621,402	614,091
Less - accumulated depreciation	424,600	412,496	407,765
Net property, plant and equipment	210,846	208,906	206,326
OTHER ASSETS:
Goodwill	73,237	73,237	73,237
Trademarks	175,024	175,024	175,024
Investments	241,308	291,175	280,326
Prepaid expenses and other assets	480	603	1,614
Deferred income taxes	1,394	1,372	1,010
Total other assets	491,443	541,411	531,211
Total assets	1,026,355	1,018,618	1,015,441
CURRENT LIABILITIES:
Accounts payable	30,728	14,969	24,512
Bank loans	949	939	956
Dividends payable	6,200	6,042	6,042
Accrued liabilities	60,330	53,896	57,597
Postretirement health care benefits	616	616	544
Operating lease liabilities	833	1,072	1,102
Income taxes payable	1,863	2,434	3,884
Total current liabilities	101,519	79,968	94,637
NONCURRENT LIABILITIES:
Deferred income taxes	41,351	45,461	45,441
Postretirement health care benefits	12,609	12,619	12,971
Industrial development bonds	7,500	7,500	7,500
Liability for uncertain tax positions	3,540	3,415	3,177
Operating lease liabilities	3,936	6,347	6,515
Deferred compensation and other liabilities	72,577	94,511	88,684
Total noncurrent liabilities	141,513	169,853	164,288
TOOTSIE ROLL INDUSTRIES, INC. SHAREHOLDERS' EQUITY:
Capital in excess of par value	743,084	709,880	709,880
Retained earnings	29,078	39,545	25,546
Accumulated other comprehensive loss	(34,428)	(25,013)	(23,295)
Treasury stock (at cost) - 99, 96 and 96 shares, respectively	(1,992)	(1,992)	(1,992)
Total Tootsie Roll Industries, Inc. shareholders' equity	783,601	769,042	756,762
Noncontrolling interests	(278)	(245)	(246)
Total equity	783,323	768,797	756,516
Total liabilities and shareholders' equity	1,026,355	1,018,618	1,015,441
Common Stock
TOOTSIE ROLL INDUSTRIES, INC. SHAREHOLDERS' EQUITY:
Common stock, value	27,982	27,322	27,314
Class B Common Stock
TOOTSIE ROLL INDUSTRIES, INC. SHAREHOLDERS' EQUITY:
Common stock, value	$ 19,877	$ 19,300	$ 19,309

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021
Trade accounts receivable, allowances	$ 2,949	$ 2,281	$ 2,706
Treasury stock, shares	99	96	96
Common Stock
Common stock, par value (in dollars per share)	$ 0.6944	$ 0.6944	$ 0.6944
Common stock, shares authorized	120,000	120,000	120,000
Common stock, shares issued	40,294	39,344	39,332
Class B Common Stock
Common stock, par value (in dollars per share)	$ 0.6944	$ 0.6944	$ 0.6944
Common stock, shares authorized	40,000	40,000	40,000
Common stock, shares issued	28,622	27,793	27,805

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenue		$ 213,173	$ 184,165	$ 497,250	$ 402,852
Costs		141,631	118,778	330,148	260,964
Gross Margin		71,542	65,387	167,102	141,888
Selling, marketing and administrative expenses		35,957	35,743	83,704	94,930
Earnings from operations		35,585	29,644	83,398	46,958
Other income (loss), net		(1,246)	1,750	(17,399)	11,810
Earnings before income taxes		34,339	31,394	65,999	58,768
Provision for income taxes		7,778	6,675	15,438	13,494
Net earnings		26,561	24,719	50,561	45,274
Less: net loss attributable to noncontrolling interests		(16)	(14)	(32)	(20)
Net earnings attributable to Tootsie Roll Industries, Inc.		$ 26,577	$ 24,733	$ 50,593	$ 45,294
Net earnings attributable to Tootsie Roll Industries, Inc. per share (in dollars per share)		$ 0.39	$ 0.36	$ 0.73	$ 0.65
Dividends per share (in dollars per share)	[1]	$ 0.09	$ 0.09	$ 0.27	$ 0.27
Average number of shares outstanding (in shares)		68,876	69,250	68,952	69,555
Product
Revenue		$ 211,888	$ 183,090	$ 493,260	$ 399,445
Costs		141,243	118,446	328,995	259,959
Gross Margin		70,645	64,644	164,265	139,486
Rental and Royalty
Revenue		1,285	1,075	3,990	3,407
Costs		388	332	1,153	1,005
Gross Margin		$ 897	$ 743	$ 2,837	$ 2,402

[1]Does not include 3% stock dividend to shareholders of record on 3/7/22 and 3/5/21.

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS
Retained earnings at beginning of period	$ 8,692	$ 6,846	$ 39,545	$ 32,312
Net earnings attributable to Tootsie Roll Industries, Inc.	26,577	24,733	50,593	45,294
Cash dividends	(6,191)	(6,033)	(18,426)	(18,027)
Stock dividends			(42,634)	(34,033)
Retained earnings at end of period	$ 29,078	$ 25,546	$ 29,078	$ 25,546
Stock dividends (as a percent)	3%	3%	3%	3%

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE EARNINGS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE EARNINGS
Net earnings	$ 26,561	$ 24,719	$ 50,561	$ 45,274
Other comprehensive income (loss), before tax:
Foreign currency translation adjustments	120	(495)	583	(302)
Pension and postretirement reclassification adjustments:
Less: reclassification adjustment for (gains) losses to net earnings	(207)	(352)	(620)	(1,055)
Unrealized gains (losses) on postretirement and pension benefits	(207)	(352)	(620)	(1,055)
Investments:
Unrealized gains (losses) for the period on investments	(3,321)	(653)	(11,608)	(2,182)
Less: reclassification adjustment for (gains) losses to net earnings	(4)	(39)	(14)	(92)
Unrealized gains (losses) on investments	(3,325)	(692)	(11,622)	(2,274)
Derivatives:
Unrealized gains (losses) for the period on derivatives	(542)	307	(550)	1,624
Less: reclassification adjustment for (gains) losses to net earnings	(121)	(922)	(398)	(2,487)
Unrealized gains (losses) on derivatives	(663)	(615)	(948)	(863)
Total other comprehensive income (loss), before tax	(4,075)	(2,154)	(12,607)	(4,494)
Income tax benefit (expense) related to items of other comprehensive income	1,015	400	3,192	1,014
Total comprehensive earnings	23,501	22,965	41,146	41,794
Comprehensive earnings (loss) attributable to noncontrolling interests	(16)	(14)	(32)	(20)
Total comprehensive earnings attributable to Tootsie Roll Industries, Inc.	$ 23,517	$ 22,979	$ 41,178	$ 41,814

CONDENSED CONSOLIDATED STATEM_6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$ 50,561	$ 45,274
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation	13,250	12,793
Deferred income taxes	(921)	(1,444)
Amortization of marketable security premiums	4,313	2,645
Changes in operating assets and liabilities:
Accounts receivable	(27,489)	(39,947)
Other receivables	(823)	(291)
Inventories	(34,012)	(12,440)
Prepaid expenses and other assets	5,886	3,980
Accounts payable and accrued liabilities	22,126	22,182
Income taxes payable	(446)	(83)
Postretirement health care benefits	(630)	(1,026)
Deferred compensation and other liabilities	(1,219)	510
Net cash provided by operating activities	30,596	32,153
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(17,552)	(22,930)
Repayment of premiums on split dollar life insurance policies		2,514
Purchases of trading securities	(1,292)	(2,108)
Sales of trading securities	2,567	582
Purchase of available for sale securities	(75,125)	(87,060)
Sale and maturity of available for sale securities	38,439	34,510
Net cash used in investing activities	(52,963)	(74,492)
CASH FLOWS FROM FINANCING ACTIVITIES:
Shares purchased and retired	(8,024)	(30,184)
Dividends paid in cash	(18,438)	(18,100)
Proceeds from bank loans	3,240	2,970
Repayment of bank loans	(3,102)	(2,798)
Net cash used in financing activities	(26,324)	(48,112)
Effect of exchange rate changes on cash	13	(202)
Decrease in cash and cash equivalents	(48,678)	(90,653)
Cash, cash equivalents and restricted cash at beginning of year	106,226	167,256
Cash, cash equivalents and restricted cash at end of quarter	57,548	76,603
Supplemental cash flow information:
Income taxes paid/(received), net	15,580	15,237
Interest paid	36	5
Stock dividend issued	$ 70,242	$ 64,667

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
Significant Accounting Policies	Sep. 30, 2022
Significant Accounting Policies
Significant Accounting Policies	Note 1 — Significant Accounting Policies General Information The foregoing data has been prepared from the unaudited financial records of Tootsie Roll Industries, Inc. (the “Company”). In the opinion of Management, all adjustments, which are of a normal recurring nature, and 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, 2021 (the “2021 Form 10-K”). Results of operations for the period ended September 30, 2022 are not necessarily indicative of results to be expected for the year to end December 31, 2022 because of the seasonal nature of the Company’s operations. Historically, the third quarter has been the Company’s largest net product sales quarter due to pre-Halloween net product sales. On March 11, 2020, the World Health Organization designated the recent novel coronavirus ("COVID-19") as a global pandemic. The Company continues to actively monitor COVID-19 and its potential impact on our operations and financial results. The impact that COVID-19 will have on our consolidated financial statements throughout 2022 and beyond remains uncertain and ultimately will be dictated by the length and severity of the pandemic and Covid-19 variants, the pace of the “reopening” of the economy and economic recovery, and federal, state, local and foreign government actions taken in response. The effects of Covid-19 pandemic are unprecedented, and therefore the Company is unable to determine its effects on its net product sales and net earnings for the balance of 2022 and beyond. Revenue Recognition The Company’s revenues, primarily net product sales resulting from the sale of goods, reflect the consideration to which the Company expects to be entitled generally based on customer purchase orders. The Company records revenue based on a five-step model in accordance with Accounting Standards Codification ("ASC") Topic 606. Adjustments for estimated customer cash discounts upon payment, discounts for price adjustments, product returns, allowances, and certain advertising and promotional costs, including consumer coupons, are variable consideration and are recorded as a reduction of net product sales revenue in the same period the related net product sales are recorded. Such estimates are calculated using historical averages adjusted for any expected changes due to current business conditions and experience. A net product sale is recorded when the Company delivers the product to the customer or, in certain instances, when the customer picks up the goods at the Company’s distribution center and thereby obtains control of such product. Amounts billed and due from our customers are classified as accounts receivable trade on the balance sheet and require payment on a short-term basis. Accounts receivable trade are unsecured. Shipping and handling costs of $19,060 and $17,743 in third quarter 2022 and 2021, respectively, and $49,754 and $40,319 in nine months 2022 and 2021, respectively, are included in selling, marketing and administrative expenses. Royalty income from sales-based licensing arrangements, pursuant to which revenue is recognized as the third-party licensee sales occur,and rental income are not considered revenue from contracts from customers and are presented separately from net product revenue as rental and royalty revenue. Leases The Company identifies leases by evaluating its contracts to determine if the contract conveys the right to use an identified asset for a stated period of time in exchange for consideration. The Company considers whether it can control the underlying asset and have the right to obtain substantially all of the economic benefits or outputs from the asset. Leases with terms greater than 12 months are classified as either operating or finance leases at the commencement date. For these leases, we record the present value of the minimum lease payments over the lease term as a lease liability with an offsetting right-of-use asset that is then presented net of any deferred rent or lease incentives. The discount rate used to calculate the present value of the minimum lease payments is typically our incremental borrowing rate, as the rate implicit in the lease is generally not known or determinable. The lease term includes any noncancelable period for which the Company has the right to use the asset as well as any future periods to which the Company has the right and intent to extend the lease under the terms of the lease agreement. Currently, all capitalized leases are classified as operating leases and the Company records rental expense on a straight-line basis over the term of the lease. Recently Adopted Accounting Pronouncements As of the date of this report, there are no recent accounting pronouncements that have not yet been adopted that Management believes would have a material impact on the Company’s consolidated financial statements.

Average Shares Outstanding

Average Shares Outstanding	9 Months Ended
Average Shares Outstanding	Sep. 30, 2022
Average Shares Outstanding
Average Shares Outstanding	Note 2 — Average Shares Outstanding The average number of shares outstanding for nine months 2022 reflects aggregate stock purchases of 230 shares for $8,024 and a 3% stock dividend of 2,006 shares distributed on April 8, 2022. The average number of shares outstanding for nine months 2021 reflects aggregate stock purchases of 921 shares for $30,184 and a 3% stock dividend of 1,970 shares distributed on April 2, 2021.

Income Taxes

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2022
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 2019 through 2021. The Company’s consolidated effective income tax rate was 22.7% and 21.3% in third quarter 2022 and 2021, respectively, and 23.4% and 23.0% in nine months 2022 and 2021, respectively.

Share Capital and Capital In Ex

Share Capital and Capital In Excess of Par Value	9 Months Ended
Share Capital and Capital In Excess of Par Value	Sep. 30, 2022
Share Capital and Capital In Excess of Par Value
Share Capital and Capital In Excess of Par Value	NOTE 4—Share Capital and Capital In Excess of Par Value: Capital in Class B Excess Common Stock Common Stock Treasury Stock of Par Shares Amount Shares Amount Shares Amount Value (000’s) (000’s) (000’s) Balance at June 30, 2022 40,379 $ 28,041 28,623 $ 19,877 99 $ (1,992) $ 746,026 Issuance of 3% stock dividend — — — — — — — Conversion of Class B common shares to common shares — — — — — — — Purchase and retirement of common shares and other (85) (59) (1) — — — (2,942) Balance at September 30, 2022 40,294 $ 27,982 28,622 $ 19,877 99 $ (1,992) $ 743,084 Balance at June 30, 2021 39,700 $ 27,569 27,821 $ 19,320 96 $ (1,992) $ 722,617 Issuance of 3% stock dividend — — — — — — — Conversion of Class B common shares to common shares 16 11 (16) (11) — — — Purchase and retirement of common shares and other (384) (266) — — — — (12,737) Balance at September 30, 2021 39,332 $ 27,314 27,805 $ 19,309 96 $ (1,992) $ 709,880 Balance at December 31, 2021 39,344 $ 27,322 27,793 $ 19,300 96 $ (1,992) $ 709,880 Issuance of 3% stock dividend 1,176 817 833 579 3 — 41,068 Conversion of Class B common shares to common shares 4 3 (4) (3) — — — Purchase and retirement of common shares and other (230) (160) — 1 — — (7,864) Balance at September 30, 2022 40,294 $ 27,982 28,622 $ 19,877 99 $ (1,992) $ 743,084 Balance at December 31, 2020 39,073 $ 27,134 27,012 $ 18,758 93 $ (1,992) $ 706,930 Issuance of 3% stock dividend 1,163 808 809 562 3 — 32,495 Conversion of Class B common shares to common shares 16 11 (16) (11) — — — Purchase and retirement of common shares and other (920) (639) — — — — (29,545) Balance at September 30, 2021 39,332 $ 27,314 27,805 $ 19,309 96 $ (1,992) $ 709,880

Fair Value Measurements

Fair Value Measurements	9 Months Ended
Fair Value Measurements	Sep. 30, 2022
Fair Value Measurements
Fair Value Measurements	Note 5 — 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, 2022, December 31, 2021 and September 30, 2021, 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 bonds. The fair value of the Company’s industrial revenue development bonds at September 30, 2022, December 31, 2021 and September 30, 2021 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. The following table presents information about the Company’s financial assets and liabilities measured at fair value as of September 30, 2022, December 31, 2021 and September 30, 2021 and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value: Estimated Fair Value September 30, 2022 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 57,216 $ 57,216 $ — $ — Available for sale securities 262,159 742 261,417 — Foreign currency forward contracts (366) — (366) — Commodity futures contracts (31) (31) — — Trading securities 67,659 52,900 14,759 — Total assets measured at fair value $ 386,637 $ 110,827 $ 275,810 $ — Estimated Fair Value December 31, 2021 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 105,840 $ 105,840 $ - $ — Available for sale securities 241,407 1,282 240,125 — Foreign currency forward contracts 426 — 426 — Commodity futures contracts 124 124 — — Trading securities 89,736 76,196 13,540 — Total assets measured at fair value $ 437,533 $ 183,442 $ 254,091 $ — Estimated Fair Value September 30, 2021 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 76,210 $ 76,210 $ - $ — Available for sale securities 235,912 2,313 233,599 — Foreign currency forward contracts 504 — 504 — Commodity futures contracts 352 352 — — Trading securities 83,905 70,762 13,143 — Total assets measured at fair value $ 396,883 $ 149,637 $ 247,246 $ —

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	9 Months Ended
Derivative Instruments and Hedging Activities	Sep. 30, 2022
Derivative Instruments and Hedging Activities
Derivative Instruments and Hedging Activities	Note 6 — Derivative Instruments and Hedging Activities From time to time, the Company uses derivative instruments, including foreign currency forward contracts and commodity futures contracts to manage its exposures to foreign exchange and commodity prices. Commodity futures contracts are intended and effective as hedges of market price risks associated with the anticipated purchase of certain raw materials (primarily sugar). Foreign currency forward contracts are intended and effective as hedges of the Company’s exposure to the variability of cash flows, primarily related to the foreign exchange rate changes of products manufactured in Canada and sold in the United States, and periodic equipment purchases from foreign suppliers denominated in a foreign currency. The Company does not engage in trading or other speculative use of derivative instruments. The Company recognizes all derivative instruments as either assets or liabilities at fair value in the 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 $31 of this accumulated comprehensive loss is expected to be reclassified to earnings in 2023. Approximately $41 and $325 reported in accumulated other comprehensive loss for foreign currency derivatives are expected to be reclassified to other income, net in 2022 and 2023, respectively. The following table summarizes the Company’s outstanding derivative contracts and their effects on its Condensed Consolidated Statements of Financial Position at September 30, 2022, December 31, 2021 and September 30, 2021: September 30, 2022 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency forward contracts $ 6,782 $ 26 $ (392) Commodity futures contracts 1,009 1 (32) Total derivatives $ 27 $ (424) December 31, 2021 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency forward contracts $ 6,729 $ 426 $ — Commodity futures contracts 6,012 231 (107) Total derivatives $ 657 $ (107) September 30, 2021 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency forward contracts $ 3,995 $ 504 $ — Commodity futures contracts 2,730 352 — Total derivatives $ 856 $ — 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, 2022 and September 30, 2021 are as follows: For Quarter Ended September 30, 2022 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 $ (483) $ 48 $ — Commodity futures contracts (59) 73 — Total $ (542) $ 121 $ — For Quarter Ended September 30, 2021 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 $ (107) $ 106 $ — Commodity futures contracts 414 816 — Total $ 307 $ 922 $ — For Year to Date Ended September 30, 2022 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 $ (556) $ 236 $ — Commodity futures contracts 6 162 — Total $ (550) $ 398 $ — For Year to Date Ended September 30, 2021 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 $ 66 $ 340 $ — Commodity futures contracts 1,558 2,147 — Total $ 1,624 $ 2,487 $ —

Pension Plans

Pension Plans	9 Months Ended
Pension Plans	Sep. 30, 2022
Pension Plans
Pension Plans	Note 7 — Pension Plans Beginning in 2012, the Company received periodic notices from the Bakery and Confectionery Union and Industry International Pension Fund (Plan), a multi-employer defined benefit pension plan for certain Company union employees, that the Plan’s actuary certified the Plan to be in “critical status”, as defined by the Pension Protection Act (PPA) and the Pension Benefit Guaranty Corporation (PBGC); and that a plan of rehabilitation was adopted by the trustees of the Plan in 2012. Beginning in 2015, the Plan was reclassified to “critical and declining status”, as defined by the PPA and PBGC, for the plan year beginning January 1, 2015. A designation of “critical and declining status” implies that the Plan is expected to become insolvent in the next 20 years. In 2016, the Company received new notices that the Plan’s trustees adopted an updated Rehabilitation Plan effective January 1, 2016, and all annual notices through 2021 have continued to classify the Plan in the “critical and declining status” category. The Company has been advised that its withdrawal liability would have been $104,300, $99,300 and $99,800 if it had withdrawn from the Plan during 2021, 2020 and 2019, respectively. 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 amended rehabilitation plan, which continues, requires that employer contributions include 5% compounded annual surcharge increases each year for an unspecified period of time beginning January 2013 (in addition to the 5% interim surcharge initiated in 2012) as well as certain plan benefit reductions. In fourth quarter 2020, the Plan Trustees advised the Company that the surcharges would no longer increase and therefore be “frozen” at the rates and amounts in effect as of December 31, 2020 provided that the local bargaining union and the Company executed a formal consenting agreement by March 31, 2021. During first quarter 2021, the local bargaining union and the Company executed this agreement which resulted in the “freezing” of such surcharges as of December 31, 2020. The Company’s pension expense for this Plan for nine months 2022 and 2021 was $2,754 and $2,419, respectively. The aforementioned expense includes surcharges of $971 and $853 for nine months 2022 and 2021, respectively, as required under the amended plan of rehabilitation. The Company’s twelve months pension expense for this Plan for 2021 and 2020 was $3,156 and $2,866, respectively, which includes surcharges of $1,112 and $1,010, respectively. 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 amended rehabilitation plan could be material to its consolidated results of operations or cash flows in one or more future periods.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Earnings (Loss)	9 Months Ended
Accumulated Other Comprehensive Earnings (Loss)	Sep. 30, 2022
Accumulated Other Comprehensive Earnings (Loss)
Accumulated Other Comprehensive Earnings (Loss)	Note 8 — 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 June 30, 2022 $ (24,419) $ (7,575) $ 124 $ 76 $ 426 $ (31,368) Other comprehensive earnings (loss) before reclassifications 120 (2,518) (365) (45) — (2,808) Reclassifications from accumulated other comprehensive loss - (3) (37) (55) (157) (252) Other comprehensive earnings (loss) net of tax 120 (2,521) (402) (100) (157) (3,060) Balance at September 30, 2022 $ (24,299) $ (10,096) $ (278) $ (24) $ 269 $ (34,428) Balance at June 30, 2021 $ (24,388) $ 793 $ 543 $ 572 $ 939 $ (21,541) Other comprehensive earnings (loss) before reclassifications (495) (496) (82) 313 - (760) Reclassifications from accumulated other comprehensive loss - (29) (81) (618) (266) (994) Other comprehensive earnings (loss) net of tax (495) (525) (163) (305) (266) (1,754) Balance at September 30, 2021 $ (24,883) $ 268 $ 380 $ 267 $ 673 $ (23,295) Balance at December 31, 2021 $ (24,882) $ (1,286) $ 322 $ 94 $ 739 $ (25,013) Other comprehensive earnings (loss) before reclassifications 583 (8,799) (421) 5 — (8,632) Reclassifications from accumulated other comprehensive loss - (11) (179) (123) (470) (783) Other comprehensive earnings (loss) net of tax 583 (8,810) (600) (118) (470) (9,415) Balance at September 30, 2022 $ (24,299) $ (10,096) $ (278) $ (24) $ 269 $ (34,428) Balance at December 31, 2020 $ (24,581) $ 1,992 $ 589 $ 713 $ 1,472 $ (19,815) Other comprehensive earnings (loss) before reclassifications (302) (1,655) 49 1,182 — (726) Reclassifications from accumulated other comprehensive loss - (69) (258) (1,628) (799) (2,754) Other comprehensive earnings (loss) net of tax (302) (1,724) (209) (446) (799) (3,480) Balance at September 30, 2021 $ (24,883) $ 268 $ 380 $ 267 $ 673 $ (23,295) 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, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Recognized in Earnings Investments $ (4) $ (39) $ (14) $ (92) Other income, net Foreign currency derivatives (48) (106) (236) (340) Other income, net Commodity derivatives (73) (816) (162) (2,147) Product cost of goods sold Postretirement and pension benefits (207) (352) (620) (1,055) Other income, net Total before tax (332) (1,313) (1,032) (3,634) Tax (expense) benefit 80 319 249 880 Net of tax $ (252) $ (994) $ (783) $ (2,754)

Restricted Cash

Restricted Cash	9 Months Ended
Restricted Cash	Sep. 30, 2022
Restricted Cash
Restricted Cash	Note 9 — Restricted Cash Restricted cash comprises certain cash deposits of the Company’s Spanish subsidiary with international banks that are pledged as collateral for letters of credit and bank borrowings.

Bank Loans

Bank Loans	9 Months Ended
Bank Loans	Sep. 30, 2022
Bank Loans
Bank Loans	Note 10 — Bank Loans Bank loans consist of short term (less than 120 days) borrowings by the Company’s Spanish subsidiary that are held by international banks. The weighted-average interest rate as of September 30, 2022 and 2021 was 3.1% and 3.1%, respectively.

Leases

Leases	9 Months Ended
Leases	Sep. 30, 2022
Leases
Leases	Note 11 — Leases The Company leases certain buildings, land and equipment that are classified as operating leases. These leases have remaining lease terms of up to approximately 19 years. Operating lease cost totaled $231 and $272 in the third quarter of 2022 and 2021, respectively, and $783 and $781 for the first nine months of 2022 and 2021, respectively. Cash paid for operating lease liabilities is substantially the same as operating lease cost and is presented in cash flows from operating activities. As of September 30, 2022 and 2021, operating lease right-of-use assets were $4,746 and $7,617, respectively, and operating lease liabilities were $4,769 and $7,617, respectively. The weighted-average remaining lease term related to these operating leases was 16.1 years and 8.1 years as of September 30, 2022 and 2021, respectively. The weighted-average discount rate related to the Company’s operating leases was 3.3% and 2.3% as of September 30, 2022 and 2021, respectively. Maturities of the Company’s operating lease liabilities at September 30, 2022 are as follows: $178 in 2022 (rest of year), $584 in 2023, $133 in 2024, $138 in 2025, $131 in 2026 and $3,605 thereafter. The Company, as lessor, rents certain commercial real estate to third-party lessees. The September 30, 2022 and 2021 cost related to these leased properties was $51,370 and $51,402, respectively, and the accumulated depreciation related to these leased properties was $16,638 and $15,314, respectively. Terms of such leases, including renewal options, may be extended for up to fifty-eight years, many of which provide for periodic adjustment of rent payments based on changes in consumer or other price indices. The Company recognizes lease income on a straight-line basis over the lease term. Lease income in third quarter 2022 and 2021 was $1,233 and $945, respectively, and in nine months 2022 and 2021 was $3,691 and $3,021, respectively, and is classified in cash flows from operating activities.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	9 Months Ended
Significant Accounting Policies (Policies)	Sep. 30, 2022
Significant Accounting Policies
General Information	General Information The foregoing data has been prepared from the unaudited financial records of Tootsie Roll Industries, Inc. (the “Company”). In the opinion of Management, all adjustments, which are of a normal recurring nature, and 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, 2021 (the “2021 Form 10-K”). Results of operations for the period ended September 30, 2022 are not necessarily indicative of results to be expected for the year to end December 31, 2022 because of the seasonal nature of the Company’s operations. Historically, the third quarter has been the Company’s largest net product sales quarter due to pre-Halloween net product sales. On March 11, 2020, the World Health Organization designated the recent novel coronavirus ("COVID-19") as a global pandemic. The Company continues to actively monitor COVID-19 and its potential impact on our operations and financial results. The impact that COVID-19 will have on our consolidated financial statements throughout 2022 and beyond remains uncertain and ultimately will be dictated by the length and severity of the pandemic and Covid-19 variants, the pace of the “reopening” of the economy and economic recovery, and federal, state, local and foreign government actions taken in response. The effects of Covid-19 pandemic are unprecedented, and therefore the Company is unable to determine its effects on its net product sales and net earnings for the balance of 2022 and beyond.
Revenue Recognition	Revenue Recognition The Company’s revenues, primarily net product sales resulting from the sale of goods, reflect the consideration to which the Company expects to be entitled generally based on customer purchase orders. The Company records revenue based on a five-step model in accordance with Accounting Standards Codification ("ASC") Topic 606. Adjustments for estimated customer cash discounts upon payment, discounts for price adjustments, product returns, allowances, and certain advertising and promotional costs, including consumer coupons, are variable consideration and are recorded as a reduction of net product sales revenue in the same period the related net product sales are recorded. Such estimates are calculated using historical averages adjusted for any expected changes due to current business conditions and experience. A net product sale is recorded when the Company delivers the product to the customer or, in certain instances, when the customer picks up the goods at the Company’s distribution center and thereby obtains control of such product. Amounts billed and due from our customers are classified as accounts receivable trade on the balance sheet and require payment on a short-term basis. Accounts receivable trade are unsecured. Shipping and handling costs of $19,060 and $17,743 in third quarter 2022 and 2021, respectively, and $49,754 and $40,319 in nine months 2022 and 2021, respectively, are included in selling, marketing and administrative expenses. Royalty income from sales-based licensing arrangements, pursuant to which revenue is recognized as the third-party licensee sales occur,and rental income are not considered revenue from contracts from customers and are presented separately from net product revenue as rental and royalty revenue.
Leases	Leases The Company identifies leases by evaluating its contracts to determine if the contract conveys the right to use an identified asset for a stated period of time in exchange for consideration. The Company considers whether it can control the underlying asset and have the right to obtain substantially all of the economic benefits or outputs from the asset. Leases with terms greater than 12 months are classified as either operating or finance leases at the commencement date. For these leases, we record the present value of the minimum lease payments over the lease term as a lease liability with an offsetting right-of-use asset that is then presented net of any deferred rent or lease incentives. The discount rate used to calculate the present value of the minimum lease payments is typically our incremental borrowing rate, as the rate implicit in the lease is generally not known or determinable. The lease term includes any noncancelable period for which the Company has the right to use the asset as well as any future periods to which the Company has the right and intent to extend the lease under the terms of the lease agreement. Currently, all capitalized leases are classified as operating leases and the Company records rental expense on a straight-line basis over the term of the lease.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements As of the date of this report, there are no recent accounting pronouncements that have not yet been adopted that Management believes would have a material impact on the Company’s consolidated financial statements.

Share Capital and Capital In _2

Share Capital and Capital In Excess of Par Value (Tables)	9 Months Ended
Share Capital and Capital In Excess of Par Value (Tables)	Sep. 30, 2022
Share Capital and Capital In Excess of Par Value
Schedule of changes in share capital and capital in excess of par value	Capital in Class B Excess Common Stock Common Stock Treasury Stock of Par Shares Amount Shares Amount Shares Amount Value (000’s) (000’s) (000’s) Balance at June 30, 2022 40,379 $ 28,041 28,623 $ 19,877 99 $ (1,992) $ 746,026 Issuance of 3% stock dividend — — — — — — — Conversion of Class B common shares to common shares — — — — — — — Purchase and retirement of common shares and other (85) (59) (1) — — — (2,942) Balance at September 30, 2022 40,294 $ 27,982 28,622 $ 19,877 99 $ (1,992) $ 743,084 Balance at June 30, 2021 39,700 $ 27,569 27,821 $ 19,320 96 $ (1,992) $ 722,617 Issuance of 3% stock dividend — — — — — — — Conversion of Class B common shares to common shares 16 11 (16) (11) — — — Purchase and retirement of common shares and other (384) (266) — — — — (12,737) Balance at September 30, 2021 39,332 $ 27,314 27,805 $ 19,309 96 $ (1,992) $ 709,880 Balance at December 31, 2021 39,344 $ 27,322 27,793 $ 19,300 96 $ (1,992) $ 709,880 Issuance of 3% stock dividend 1,176 817 833 579 3 — 41,068 Conversion of Class B common shares to common shares 4 3 (4) (3) — — — Purchase and retirement of common shares and other (230) (160) — 1 — — (7,864) Balance at September 30, 2022 40,294 $ 27,982 28,622 $ 19,877 99 $ (1,992) $ 743,084 Balance at December 31, 2020 39,073 $ 27,134 27,012 $ 18,758 93 $ (1,992) $ 706,930 Issuance of 3% stock dividend 1,163 808 809 562 3 — 32,495 Conversion of Class B common shares to common shares 16 11 (16) (11) — — — Purchase and retirement of common shares and other (920) (639) — — — — (29,545) Balance at September 30, 2021 39,332 $ 27,314 27,805 $ 19,309 96 $ (1,992) $ 709,880

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
Fair Value Measurements (Tables)	Sep. 30, 2022
Fair Value Measurements
Schedule of financial assets and liabilities measured at fair value	Estimated Fair Value September 30, 2022 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 57,216 $ 57,216 $ — $ — Available for sale securities 262,159 742 261,417 — Foreign currency forward contracts (366) — (366) — Commodity futures contracts (31) (31) — — Trading securities 67,659 52,900 14,759 — Total assets measured at fair value $ 386,637 $ 110,827 $ 275,810 $ — Estimated Fair Value December 31, 2021 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 105,840 $ 105,840 $ - $ — Available for sale securities 241,407 1,282 240,125 — Foreign currency forward contracts 426 — 426 — Commodity futures contracts 124 124 — — Trading securities 89,736 76,196 13,540 — Total assets measured at fair value $ 437,533 $ 183,442 $ 254,091 $ — Estimated Fair Value September 30, 2021 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 76,210 $ 76,210 $ - $ — Available for sale securities 235,912 2,313 233,599 — Foreign currency forward contracts 504 — 504 — Commodity futures contracts 352 352 — — Trading securities 83,905 70,762 13,143 — Total assets measured at fair value $ 396,883 $ 149,637 $ 247,246 $ —

Derivative Instruments and He_2

Derivative Instruments and Hedging Activities (Tables)	9 Months Ended
Derivative Instruments and Hedging Activities (Tables)	Sep. 30, 2022
Derivative Instruments and Hedging Activities
Summary of the Company's outstanding derivative contracts and their effects on the Consolidated Statements of Financial Position	September 30, 2022 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency forward contracts $ 6,782 $ 26 $ (392) Commodity futures contracts 1,009 1 (32) Total derivatives $ 27 $ (424) December 31, 2021 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency forward contracts $ 6,729 $ 426 $ — Commodity futures contracts 6,012 231 (107) Total derivatives $ 657 $ (107) September 30, 2021 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency forward contracts $ 3,995 $ 504 $ — Commodity futures contracts 2,730 352 — Total derivatives $ 856 $ —
Effects of derivative instruments on the Consolidated Statement of Earnings and Retained Earnings, and the Condensed Consolidated Statement of Comprehensive Earnings	For Quarter Ended September 30, 2022 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 $ (483) $ 48 $ — Commodity futures contracts (59) 73 — Total $ (542) $ 121 $ — For Quarter Ended September 30, 2021 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 $ (107) $ 106 $ — Commodity futures contracts 414 816 — Total $ 307 $ 922 $ — For Year to Date Ended September 30, 2022 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 $ (556) $ 236 $ — Commodity futures contracts 6 162 — Total $ (550) $ 398 $ — For Year to Date Ended September 30, 2021 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 $ 66 $ 340 $ — Commodity futures contracts 1,558 2,147 — Total $ 1,624 $ 2,487 $ —

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Earnings (Loss) (Tables)	9 Months Ended
Accumulated Other Comprehensive Earnings (Loss) (Tables)	Sep. 30, 2022
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 June 30, 2022 $ (24,419) $ (7,575) $ 124 $ 76 $ 426 $ (31,368) Other comprehensive earnings (loss) before reclassifications 120 (2,518) (365) (45) — (2,808) Reclassifications from accumulated other comprehensive loss - (3) (37) (55) (157) (252) Other comprehensive earnings (loss) net of tax 120 (2,521) (402) (100) (157) (3,060) Balance at September 30, 2022 $ (24,299) $ (10,096) $ (278) $ (24) $ 269 $ (34,428) Balance at June 30, 2021 $ (24,388) $ 793 $ 543 $ 572 $ 939 $ (21,541) Other comprehensive earnings (loss) before reclassifications (495) (496) (82) 313 - (760) Reclassifications from accumulated other comprehensive loss - (29) (81) (618) (266) (994) Other comprehensive earnings (loss) net of tax (495) (525) (163) (305) (266) (1,754) Balance at September 30, 2021 $ (24,883) $ 268 $ 380 $ 267 $ 673 $ (23,295) Balance at December 31, 2021 $ (24,882) $ (1,286) $ 322 $ 94 $ 739 $ (25,013) Other comprehensive earnings (loss) before reclassifications 583 (8,799) (421) 5 — (8,632) Reclassifications from accumulated other comprehensive loss - (11) (179) (123) (470) (783) Other comprehensive earnings (loss) net of tax 583 (8,810) (600) (118) (470) (9,415) Balance at September 30, 2022 $ (24,299) $ (10,096) $ (278) $ (24) $ 269 $ (34,428) Balance at December 31, 2020 $ (24,581) $ 1,992 $ 589 $ 713 $ 1,472 $ (19,815) Other comprehensive earnings (loss) before reclassifications (302) (1,655) 49 1,182 — (726) Reclassifications from accumulated other comprehensive loss - (69) (258) (1,628) (799) (2,754) Other comprehensive earnings (loss) net of tax (302) (1,724) (209) (446) (799) (3,480) Balance at September 30, 2021 $ (24,883) $ 268 $ 380 $ 267 $ 673 $ (23,295)
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, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Recognized in Earnings Investments $ (4) $ (39) $ (14) $ (92) Other income, net Foreign currency derivatives (48) (106) (236) (340) Other income, net Commodity derivatives (73) (816) (162) (2,147) Product cost of goods sold Postretirement and pension benefits (207) (352) (620) (1,055) Other income, net Total before tax (332) (1,313) (1,032) (3,634) Tax (expense) benefit 80 319 249 880 Net of tax $ (252) $ (994) $ (783) $ (2,754)

Significant Accounting Polici_3

Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenue Recognition
Selling, marketing and administrative expenses	$ 35,957	$ 35,743	$ 83,704	$ 94,930
Shipping and Handling
Revenue Recognition
Selling, marketing and administrative expenses	$ 19,060	$ 17,743	$ 49,754	$ 40,319

Average Shares Outstanding (Det

Average Shares Outstanding (Details) - USD ($) shares in Thousands, $ in Thousands			3 Months Ended		9 Months Ended
	Apr. 08, 2022	Apr. 02, 2021	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Average Shares Outstanding
Stock purchases (in shares)					230	921
Purchase of common shares					$ 8,024	$ 30,184
Stock dividends (as a percent)			3%	3%	3%	3%
Stock dividend shares distributed	2,006	1,970

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		9 Months Ended
Income Taxes (Details)	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Taxes
Effective income tax rate (as a percent)	22.70%	21.30%	23.40%	23%

Share Capital and Capital In _3

Share Capital and Capital In Excess of Par Value (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Changes in share capital and capital in excess of par value
Balance at the beginning of the period			$ 768,797
Balance at the beginning of the period (in shares)			96
Purchase and retirement of common shares			$ (8,024)	$ (30,184)
Purchase and retirement of common shares (in shares)			(230)	(921)
Balance at the end of the period	$ 783,323	$ 756,516	$ 783,323	$ 756,516
Balance at the end of the period (in shares)	99	96	99	96
Stock dividends (as a percent)	3%	3%	3%	3%
Treasury Stock
Changes in share capital and capital in excess of par value
Balance at the beginning of the period	$ (1,992)	$ (1,992)	$ (1,992)	$ (1,992)
Balance at the beginning of the period (in shares)	99	96	96	93
Issuance of 3% stock dividend (in shares)			3	3
Balance at the end of the period	$ (1,992)	$ (1,992)	$ (1,992)	$ (1,992)
Balance at the end of the period (in shares)	99	96	99	96
Capital in Excess of Par Value
Changes in share capital and capital in excess of par value
Balance at the beginning of the period	$ 746,026	$ 722,617	$ 709,880	$ 706,930
Issuance of 3% stock dividend			41,068	32,495
Purchase and retirement of common shares	(2,942)	(12,737)	(7,864)	(29,545)
Balance at the end of the period	743,084	709,880	743,084	709,880
Class B Common Stock \| Common Stock.
Changes in share capital and capital in excess of par value
Balance at the beginning of the period	$ 19,877	$ 19,320	$ 19,300	$ 18,758
Balance at the beginning of the period (in shares)	28,623	27,821	27,793	27,012
Issuance of 3% stock dividend			$ 579	$ 562
Issuance of 3% stock dividend (in shares)			833	809
Conversion of Class B common shares to common shares		$ (11)	$ (3)	$ (11)
Conversion of Class B common shares to common shares (in shares)		(16)	(4)	(16)
Purchase and retirement of common shares			$ 1
Purchase and retirement of common shares (in shares)	(1)
Balance at the end of the period	$ 19,877	$ 19,309	$ 19,877	$ 19,309
Balance at the end of the period (in shares)	28,622	27,805	28,622	27,805
Common Stock \| Common Stock.
Changes in share capital and capital in excess of par value
Balance at the beginning of the period	$ 28,041	$ 27,569	$ 27,322	$ 27,134
Balance at the beginning of the period (in shares)	40,379	39,700	39,344	39,073
Issuance of 3% stock dividend			$ 817	$ 808
Issuance of 3% stock dividend (in shares)			1,176	1,163
Conversion of Class B common shares to common shares		$ 11	$ 3	$ 11
Conversion of Class B common shares to common shares (in shares)		16	4	16
Purchase and retirement of common shares	$ (59)	$ (266)	$ (160)	$ (639)
Purchase and retirement of common shares (in shares)	(85)	(384)	(230)	(920)
Balance at the end of the period	$ 27,982	$ 27,314	$ 27,982	$ 27,314
Balance at the end of the period (in shares)	40,294	39,332	40,294	39,332

Fair Value Measurements - Bonds

Fair Value Measurements - Bonds (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021
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

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021
Fair value measurements
Cash and cash equivalents	$ 57,216	$ 105,840	$ 76,210
Fair value measured on a recurring basis
Fair value measurements
Cash and cash equivalents	57,216	105,840	76,210
Available for sale securities	262,159	241,407	235,912
Trading securities	67,659	89,736	83,905
Total assets measured at fair value	386,637	437,533	396,883
Fair value measured on a recurring basis \| Foreign currency forward contracts
Fair value measurements
Derivative instruments, net	(366)	426	504
Fair value measured on a recurring basis \| Commodity futures contracts
Fair value measurements
Derivative instruments, net	(31)	124	352
Fair value measured on a recurring basis \| Level 1
Fair value measurements
Cash and cash equivalents	57,216	105,840	76,210
Available for sale securities	742	1,282	2,313
Trading securities	52,900	76,196	70,762
Total assets measured at fair value	110,827	183,442	149,637
Fair value measured on a recurring basis \| Level 1 \| Commodity futures contracts
Fair value measurements
Derivative instruments, net	(31)	124	352
Fair value measured on a recurring basis \| Level 2
Fair value measurements
Available for sale securities	261,417	240,125	233,599
Trading securities	14,759	13,540	13,143
Total assets measured at fair value	275,810	254,091	247,246
Fair value measured on a recurring basis \| Level 2 \| Foreign currency forward contracts
Fair value measurements
Derivative instruments, net	$ (366)	$ 426	$ 504

Derivative Instruments and He_3

Derivative Instruments and Hedging Activities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021
Derivative contracts
Assets			$ 27	$ 657	$ 856
Liabilities			(424)	(107)
Derivatives designated as hedging instruments: \| Foreign currency forward contracts
Derivative contracts
Notional Amounts			6,782	6,729	3,995
Assets			26	426	504
Liabilities			(392)
Derivatives designated as hedging instruments: \| Commodity futures contracts
Derivative contracts
Notional Amounts			1,009	6,012	2,730
Assets			1	231	$ 352
Liabilities			$ (32)	$ (107)
Forecast
Derivative contracts
Accumulated comprehensive loss to be reclassified	$ (31)
Forecast \| Foreign currency forward contracts
Derivative contracts
Accumulated other comprehensive loss to be reclassified	$ (325)	$ (41)

Derivative Instruments and He_4

Derivative Instruments and Hedging Activities - OCI (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Effect of derivative instruments on earnings
Gain (Loss) Recognized in OCI	$ (542)	$ 307	$ (550)	$ 1,624
Reclassified from Accumulated OCI into Earnings
Effect of derivative instruments on earnings
Gain (Loss) Reclassified from Accumulated OCI into Earnings	121	922	398	2,487
Foreign currency forward contracts
Effect of derivative instruments on earnings
Gain (Loss) Recognized in OCI	(483)	(107)	(556)	66
Foreign currency forward contracts \| Reclassified from Accumulated OCI into Earnings
Effect of derivative instruments on earnings
Gain (Loss) Reclassified from Accumulated OCI into Earnings	48	106	236	340
Commodity futures contracts
Effect of derivative instruments on earnings
Gain (Loss) Recognized in OCI	(59)	414	6	1,558
Commodity futures contracts \| Reclassified from Accumulated OCI into Earnings
Effect of derivative instruments on earnings
Gain (Loss) Reclassified from Accumulated OCI into Earnings	$ 73	$ 816	$ 162	$ 2,147

Pension Plans (Details)

Pension Plans (Details) - Multi-employer defined benefit pension plan - Consenting agreement entered with local bargaining union - USD ($) $ in Thousands		9 Months Ended		12 Months Ended
	Jun. 12, 2012	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Pension Plans
Insolvent period		20 years
Estimated liability upon withdrawal from plan				$ 104,300	$ 99,300	$ 99,800
Percentage of annual compounded surcharge for rehabilitation		5%
Percentage of interim surcharge	5%
Pension expense		$ 2,754	$ 2,419	3,156	2,866
Surcharges		$ 971	$ 853	$ 1,112	$ 1,010

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Earnings (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Accumulated other comprehensive earnings (loss), net of tax
Balance at the beginning of the period			$ 769,042
Balance at the end of the period	$ 783,601	$ 756,762	783,601	$ 756,762
Foreign Currency Translation Adjustment
Accumulated other comprehensive earnings (loss), net of tax
Balance at the beginning of the period	(24,419)	(24,388)	(24,882)	(24,581)
Other comprehensive earnings (loss) before reclassifications	120	(495)	583	(302)
Other comprehensive earnings (loss) net of tax	120	(495)	583	(302)
Balance at the end of the period	(24,299)	(24,883)	(24,299)	(24,883)
Investments
Accumulated other comprehensive earnings (loss), net of tax
Balance at the beginning of the period	(7,575)	793	(1,286)	1,992
Other comprehensive earnings (loss) before reclassifications	(2,518)	(496)	(8,799)	(1,655)
Reclassifications from accumulated other comprehensive loss	(3)	(29)	(11)	(69)
Other comprehensive earnings (loss) net of tax	(2,521)	(525)	(8,810)	(1,724)
Balance at the end of the period	(10,096)	268	(10,096)	268
Foreign Currency Derivatives
Accumulated other comprehensive earnings (loss), net of tax
Balance at the beginning of the period	124	543	322	589
Other comprehensive earnings (loss) before reclassifications	(365)	(82)	(421)	49
Reclassifications from accumulated other comprehensive loss	(37)	(81)	(179)	(258)
Other comprehensive earnings (loss) net of tax	(402)	(163)	(600)	(209)
Balance at the end of the period	(278)	380	(278)	380
Commodity Derivatives
Accumulated other comprehensive earnings (loss), net of tax
Balance at the beginning of the period	76	572	94	713
Other comprehensive earnings (loss) before reclassifications	(45)	313	5	1,182
Reclassifications from accumulated other comprehensive loss	(55)	(618)	(123)	(1,628)
Other comprehensive earnings (loss) net of tax	(100)	(305)	(118)	(446)
Balance at the end of the period	(24)	267	(24)	267
Postretirement and Pension Benefits
Accumulated other comprehensive earnings (loss), net of tax
Balance at the beginning of the period	426	939	739	1,472
Reclassifications from accumulated other comprehensive loss	(157)	(266)	(470)	(799)
Other comprehensive earnings (loss) net of tax	(157)	(266)	(470)	(799)
Balance at the end of the period	269	673	269	673
Accumulated Other Comprehensive Earnings (Loss).
Accumulated other comprehensive earnings (loss), net of tax
Balance at the beginning of the period	(31,368)	(21,541)	(25,013)	(19,815)
Other comprehensive earnings (loss) before reclassifications	(2,808)	(760)	(8,632)	(726)
Reclassifications from accumulated other comprehensive loss	(252)	(994)	(783)	(2,754)
Other comprehensive earnings (loss) net of tax	(3,060)	(1,754)	(9,415)	(3,480)
Balance at the end of the period	$ (34,428)	$ (23,295)	$ (34,428)	$ (23,295)

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Earnings (Loss) - Reclassification from AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Other income, net	$ 1,246	$ (1,750)	$ 17,399	$ (11,810)
Cost of goods sold	141,631	118,778	330,148	260,964
Total before tax	(34,339)	(31,394)	(65,999)	(58,768)
Tax (expense) benefit	7,778	6,675	15,438	13,494
Net of tax	(26,561)	(24,719)	(50,561)	(45,274)
Reclassified from Accumulated OCI into Earnings
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Total before tax	(332)	(1,313)	(1,032)	(3,634)
Tax (expense) benefit	80	319	249	880
Net of tax	(252)	(994)	(783)	(2,754)
Investments \| Reclassified from Accumulated OCI into Earnings
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Other income, net	(4)	(39)	(14)	(92)
Foreign Currency Derivatives \| Reclassified from Accumulated OCI into Earnings
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Other income, net	(48)	(106)	(236)	(340)
Commodity Derivatives \| Reclassified from Accumulated OCI into Earnings
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Cost of goods sold	$ (73)	$ (816)	$ (162)	$ (2,147)
Type of Cost, Good or Service [Extensible List]	Product	Product	Product	Product
Postretirement and Pension Benefits \| Reclassified from Accumulated OCI into Earnings
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Other income, net	$ (207)	$ (352)	$ (620)	$ (1,055)

Bank Loans (Details)

Bank Loans (Details) - Spanish Companies	9 Months Ended
Bank Loans (Details) - Spanish Companies	Sep. 30, 2022	Sep. 30, 2021
Bank Loans
Weighted interest rate (as a percent)	3.10%	3.10%
Maximum
Bank Loans
Maturity period	120 days

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Lessee, Lease, Description [Line Items]
Operating lease cost	$ 231	$ 272	$ 783	$ 781
Operating lease right-of-use assets	4,746	7,617	4,746	7,617	$ 7,419
Operating lease liabilities	$ 4,769	$ 7,617	$ 4,769	$ 7,617
Weighted average remaining lease term	16 years 1 month 6 days	8 years 1 month 6 days	16 years 1 month 6 days	8 years 1 month 6 days
Weighted average discount rate	3.30%	2.30%	3.30%	2.30%
2022 (rest of year)	$ 178		$ 178
2023	584		584
2024	133		133
2025	138		138
2026	131		131
Thereafter	3,605		$ 3,605
Lessor, Operating Lease, Existence of Option to Extend [true false]			true
Property, Plant and Equipment, Gross	635,446	$ 614,091	$ 635,446	$ 614,091	$ 621,402
Lease income	$ 1,233	945	$ 3,691	3,021
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	19 years		19 years
Commercial real estate leased to third parties
Lessee, Lease, Description [Line Items]
Property, Plant and Equipment, Gross	$ 51,370	$ 51,402	$ 51,370	51,402
Depreciation			$ 16,638	$ 15,314
Commercial real estate leased to third parties \| Maximum
Lessee, Lease, Description [Line Items]
Lessor, renewal term	58 years		58 years