Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2024 shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Transition Report | false |
Document Period End Date | Mar. 31, 2024 |
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 $0.694 per share |
Trading Symbol | TR |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Central Index Key | 0000098677 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2024 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Common Stock | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 41,210,977 |
Class B Common Stock | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 30,311,127 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 64,886 | $ 75,915 | $ 37,992 |
Restricted cash | 367 | 375 | 369 |
Investments | 94,475 | 95,507 | 85,880 |
Accounts receivable trade, less allowances of $2,543 $2,245 and $2,546 | 44,257 | 55,568 | 59,392 |
Other receivables | 6,412 | 9,165 | 3,707 |
Inventories: | |||
Finished goods and work-in-process | 61,498 | 51,240 | 63,610 |
Raw materials and supplies | 46,775 | 43,681 | 45,637 |
Prepaid expenses | 9,870 | 9,200 | 7,909 |
Total current assets | 328,540 | 340,651 | 304,496 |
PROPERTY, PLANT AND EQUIPMENT, at cost: | |||
Land | 21,864 | 21,862 | 21,752 |
Buildings | 144,966 | 144,949 | 142,542 |
Machinery and equipment | 485,012 | 485,265 | 468,202 |
Construction in progress | 14,182 | 11,277 | 8,535 |
Operating lease right-of-use assets | 6,896 | 7,145 | 4,631 |
Property, plant and equipment, gross | 672,920 | 670,498 | 645,662 |
Less - accumulated depreciation | 451,829 | 447,520 | 433,718 |
Net property, plant and equipment | 221,091 | 222,978 | 211,944 |
OTHER ASSETS: | |||
Goodwill | 73,237 | 73,237 | 73,237 |
Trademarks | 175,024 | 175,024 | 175,024 |
Investments | 278,953 | 255,606 | 252,888 |
Prepaid expenses and other assets | 14,921 | 15,189 | 450 |
Deferred income taxes | 1,687 | 1,706 | 1,574 |
Total other assets | 543,822 | 520,762 | 503,173 |
Total assets | 1,093,453 | 1,084,391 | 1,019,613 |
CURRENT LIABILITIES: | |||
Accounts payable | 17,200 | 15,816 | 21,706 |
Bank loans | 1,050 | 1,088 | 1,060 |
Dividends payable | 152 | 6,250 | 250 |
Accrued liabilities | 55,026 | 61,690 | 52,928 |
Postretirement health care benefits | 665 | 665 | 658 |
Operating lease liabilities | 1,387 | 1,289 | 726 |
Income taxes payable | 11,788 | 8,090 | |
Total current liabilities | 87,268 | 94,888 | 77,328 |
NONCURRENT LIABILITIES: | |||
Deferred income taxes | 45,486 | 45,477 | 45,612 |
Postretirement health care benefits | 9,661 | 9,653 | 9,292 |
Industrial development bonds | 7,500 | 7,500 | 7,500 |
Liability for uncertain tax positions | 2,876 | 2,777 | 3,825 |
Operating lease liabilities | 5,776 | 6,018 | 3,962 |
Deferred compensation and other liabilities | 100,780 | 94,971 | 80,699 |
Total noncurrent liabilities | 172,079 | 166,396 | 150,890 |
TOOTSIE ROLL INDUSTRIES, INC. SHAREHOLDERS' EQUITY: | |||
Capital in excess of par value | 802,253 | 737,453 | 768,676 |
Retained earnings | 6,147 | 62,949 | 3,223 |
Accumulated other comprehensive loss | (21,656) | (23,213) | (27,059) |
Treasury stock (at cost) - 105, 102 and 102 shares, respectively | (1,992) | (1,992) | (1,992) |
Total Tootsie Roll Industries, Inc. shareholders' equity | 834,420 | 823,422 | 791,691 |
Noncontrolling interests | (314) | (315) | (296) |
Total equity | 834,106 | 823,107 | 791,395 |
Total liabilities and shareholders' equity | 1,093,453 | 1,084,391 | 1,019,613 |
Common Stock | |||
TOOTSIE ROLL INDUSTRIES, INC. SHAREHOLDERS' EQUITY: | |||
Common stock, value | 28,619 | 27,777 | 28,383 |
Class B Common Stock | |||
TOOTSIE ROLL INDUSTRIES, INC. SHAREHOLDERS' EQUITY: | |||
Common stock, value | $ 21,049 | $ 20,448 | $ 20,460 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Trade accounts receivable, allowances | $ 2,543 | $ 2,245 | $ 2,546 |
Treasury stock, shares | 105 | 102 | 102 |
Common Stock | |||
Common stock, par value (in dollars per share) | $ 0.694 | $ 0.694 | $ 0.694 |
Common stock, shares authorized | 120,000 | 120,000 | 120,000 |
Common stock, shares issued | 41,211 | 39,999 | 40,871 |
Class B Common Stock | |||
Common stock, par value (in dollars per share) | $ 0.694 | $ 0.694 | $ 0.694 |
Common stock, shares authorized | 40,000 | 40,000 | 40,000 |
Common stock, shares issued | 30,311 | 29,445 | 29,463 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Total revenue | $ 153,175 | $ 162,092 | |
Total costs | 103,147 | 111,797 | |
Total gross margin | 50,028 | 50,295 | |
Selling, marketing and administrative expenses | 38,918 | 37,499 | |
Earnings from operations | 11,110 | 12,796 | |
Other income, net | 9,032 | 4,780 | |
Earnings before income taxes | 20,142 | 17,576 | |
Provision for income taxes | 4,307 | 4,182 | |
Net earnings | 15,835 | 13,394 | |
Less: net income (loss) attributable to noncontrolling interests | 1 | (7) | |
Net earnings attributable to Tootsie Roll Industries, Inc. | $ 15,834 | $ 13,401 | |
Net earnings attributable to Tootsie Roll Industries, Inc. per share | $ 0.22 | $ 0.19 | |
Dividends per share | [1] | $ 0.09 | $ 0.09 |
Average number of shares outstanding (in shares) | 71,417 | 72,317 | |
Product | |||
Total revenue | $ 151,464 | $ 160,711 | |
Total costs | 102,732 | 111,406 | |
Total gross margin | 48,732 | 49,305 | |
Rental and Royalty | |||
Total revenue | 1,711 | 1,381 | |
Total costs | 415 | 391 | |
Total gross margin | $ 1,296 | $ 990 | |
[1]Does not include 3% stock dividend to shareholders of record on 3/6/24 and 3/6/23. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS | ||
Retained earnings at beginning of period | $ 62,949 | $ 48,276 |
Net earnings attributable to Tootsie Roll Industries, Inc. | 15,834 | 13,401 |
Cash dividends | (6,241) | (6,137) |
Stock dividends | (66,395) | (52,317) |
Retained earnings at end of period | $ 6,147 | $ 3,223 |
Stock dividends (as a percent) | 3% | 3% |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE EARNINGS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE EARNINGS | ||
Net earnings | $ 15,835 | $ 13,394 |
Other comprehensive income (loss), before tax: | ||
Foreign currency translation adjustments | 320 | 1,296 |
Pension and postretirement reclassification adjustments: | ||
Less: reclassification adjustment for (gains) losses to net earnings | (160) | (190) |
Unrealized gains (losses) on postretirement and pension benefits | (160) | (190) |
Investments: | ||
Unrealized gains (losses) for the period on investments | 157 | 2,494 |
Less: reclassification adjustment for (gains) losses to net earnings | (1) | |
Unrealized gains (losses) on investments | 157 | 2,493 |
Derivatives: | ||
Unrealized gains (losses) for the period on derivatives | 1,200 | 95 |
Less: reclassification adjustment for (gains) losses to net earnings | 435 | (5) |
Unrealized gains (losses) on derivatives | 1,635 | 90 |
Total other comprehensive income (loss), before tax | 1,952 | 3,689 |
Income tax benefit (expense) related to items of other comprehensive income | (395) | (579) |
Total comprehensive earnings | 17,392 | 16,504 |
Comprehensive earnings (loss) attributable to noncontrolling interests | 1 | (7) |
Total comprehensive earnings attributable to Tootsie Roll Industries, Inc. | $ 17,391 | $ 16,511 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings | $ 15,835 | $ 13,394 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation | 4,580 | 4,599 |
Deferred income taxes | (345) | 10 |
Amortization of marketable security premiums | 642 | 1,185 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 11,378 | (360) |
Other receivables | 2,626 | 645 |
Inventories | (13,262) | (24,432) |
Prepaid expenses and other assets | (250) | 1,033 |
Accounts payable and accrued liabilities | (3,414) | (4,845) |
Income taxes payable | 3,797 | 1,536 |
Postretirement health care benefits | (152) | (201) |
Deferred compensation and other liabilities | (34) | (46) |
Net cash provided by (used in) operating activities | 21,401 | (7,482) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (4,494) | (5,049) |
Purchases of trading securities | (1,296) | (1,010) |
Sales of trading securities | 430 | 528 |
Purchase of available for sale securities | (27,297) | (14,848) |
Sale and maturity of available for sale securities | 12,655 | 25,874 |
Net cash (used in) provided by investing activities | (20,002) | 5,495 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Shares purchased and retired | (1,604) | |
Dividends paid in cash | (12,491) | (12,291) |
Proceeds from bank loans | 1,039 | 1,110 |
Repayment of bank loans | (1,055) | (1,115) |
Net cash used in financing activities | (12,507) | (13,900) |
Effect of exchange rate changes on cash | 71 | 613 |
Increase (decrease) in cash and cash equivalents | (11,037) | (15,274) |
Cash, cash equivalents and restricted cash at beginning of year | 76,290 | 53,635 |
Cash, cash equivalents and restricted cash at end of year | 65,253 | 38,361 |
Supplemental cash flow information: | ||
Income taxes paid/(received), net | 565 | 2,303 |
Interest paid | 66 | 58 |
Stock dividend issued | $ 66,243 | $ 86,433 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
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. The financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting and with the rules and regulations for reporting on Form 10-Q. Accordingly, they do not contain certain information and disclosures required by GAAP for comprehensive financial statements. 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, 2023 (the “2023 Form 10-K”). Results of operations for the period ended March 31, 2024 are not necessarily indicative of results to be expected for the year to end December 31, 2024 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. 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 $13,616 and $16,233 in first quarter 2024 and 2023, 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 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. Recent Accounting Pronouncements In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU No. 2023-07, Segment Reporting (Topic 280): "Improvements to Reportable Segment Disclosures". The amendments in this update affect reportable segment disclosure requirements and apply whether an entity presents one or more reportable segments in accordance with Topic 280. The amendments in this update are effective for annual periods and interim periods beginning after December 15, 2024. In December 2023, the FASB issued ASU No. 2023-09, "Improvements to Income Tax Disclosures". The amendments in this update affect income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The amendments in this update are effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the potential effects of these amendments on its Consolidated Financial Statements and believes the adoption will not significantly impact the presentation of our financial condition, results of operations and disclosures. |
Average Shares Outstanding
Average Shares Outstanding | 3 Months Ended |
Mar. 31, 2024 | |
Average Shares Outstanding | |
Average Shares Outstanding | Note 2 — Average Shares Outstanding The average number of shares outstanding for first quarter 2024 reflects a 3% stock dividend of 2,075 shares distributed on April 5, 2024. The average number of shares outstanding for first quarter 2023 reflects aggregate stock purchases of 37 shares for $1,604, excluding excise taxes, and a 3% stock dividend of 2,040 shares distributed on April 7, 2023. There were no aggregate stock purchases during first quarter 2024. |
Incomes Taxes
Incomes Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Incomes Taxes | |
Incomes 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 2020 through 2022. The Company’s consolidated effective income tax rate was 21.4% and 23.8% in first quarter 2024 and 2023, respectively. |
Share Capital and Capital In Ex
Share Capital and Capital In Excess of Par Value | 3 Months Ended |
Mar. 31, 2024 | |
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 December 31, 2023 39,999 $ 27,777 29,445 $ 20,448 102 $ (1,992) $ 737,453 Issuance of 3% stock dividend 1,196 830 882 613 3 — 64,800 Conversion of Class B common shares to common shares 16 12 (16) (12) — — — Purchase and retirement of common shares and other — — — — — — — Balance at March 31, 2024 41,211 $ 28,619 30,311 $ 21,049 105 $ (1,992) $ 802,253 Balance at December 31, 2022 39,721 $ 27,584 28,607 $ 19,866 99 $ (1,992) $ 719,606 Issuance of 3% stock dividend 1,185 823 858 596 3 — 50,648 Conversion of Class B common shares to common shares 2 2 (2) (2) — — — Purchase and retirement of common shares and other (37) (26) — — — — (1,578) Balance at March 31, 2023 40,871 $ 28,383 29,463 $ 20,460 102 $ (1,992) $ 768,676 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024, December 31, 2023 and March 31, 2023 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 government bonds. While the Company generally holds its available for sale investments to maturity, the Company would sell prior to maturity if it was considered beneficial to do so for tax-planning strategies or if the Company required the funds to finance a significant reinvestment in the Company, including an acquisition. As such, the Company does not classify any investments as held to maturity which is restrictive under GAAP because the use of amortized cost must be justified for each security. The fair value of the Company’s industrial revenue development bonds at March 31, 2024, December 31, 2023 and March 31, 2023 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 March 31, 2024, December 31, 2023 and March 31, 2023 and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value: Estimated Fair Value March 31, 2024 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 64,886 $ 64,886 $ — $ — Available for sale securities 277,471 4,038 273,433 — Foreign currency derivatives (29) — (29) — Commodity derivatives (559) (559) - — Trading securities 95,957 78,362 17,595 — Total assets measured at fair value $ 437,726 $ 146,727 $ 290,999 $ — Estimated Fair Value December 31, 2023 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 75,915 $ 75,915 $ — $ — Available for sale securities 263,313 4,084 259,229 — Foreign currency derivatives 302 — 302 — Commodity derivatives (2,526) (2,526) — — Trading securities 87,800 70,681 17,119 — Total assets measured at fair value $ 424,804 $ 148,154 $ 276,650 $ — Estimated Fair Value March 31, 2023 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 37,992 $ 37,992 $ — $ — Available for sale securities 262,729 4,583 258,146 — Foreign currency derivatives (233) — (233) — Commodity derivatives 51 51 — — Trading securities 76,039 59,952 16,087 — Total assets measured at fair value $ 376,578 $ 102,578 $ 274,000 $ — |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2024 | |
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 $312, $217 and $30 of this accumulated comprehensive loss is expected to be reclassified to earnings in 2024, 2025 and 2026, respectively. Approximately $29 reported in accumulated other comprehensive loss for foreign currency derivatives is expected to be reclassified to other income, net in 2024. The following table summarizes the Company’s outstanding derivative contracts and their effects on its Condensed Consolidated Statements of Financial Position at March 31, 2024, December 31, 2023 and March 31, 2023: March 31, 2024 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency derivatives $ 9,646 $ 25 $ (54) Commodity derivatives 24,413 211 (770) Total derivatives $ 236 $ (824) December 31, 2023 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency derivatives $ 16,337 $ 302 $ — Commodity derivatives 28,247 16 (2,542) Total derivatives $ 318 $ (2,542) March 31, 2023 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency derivatives $ 17,260 $ 13 $ (246) Commodity derivatives 189 51 — Total derivatives $ 64 $ (246) 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 March 31, 2024 and March 31, 2023 are as follows: For Quarter Ended March 31, 2024 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 derivatives $ (358) $ (26) $ — Commodity derivatives 1,558 (409) — Total $ 1,200 $ (435) $ — For Quarter Ended March 31, 2023 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 derivatives $ (39) $ (88) $ — Commodity derivatives 134 93 — Total $ 95 $ 5 $ — |
Pension Plans
Pension Plans | 3 Months Ended |
Mar. 31, 2024 | |
Pension Plans | |
Pension Plans | Note 7 — Pension Plans Beginning in 2012, the Company has 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 the plan year January 1, 2015, the Plan was reclassified to “critical and declining status”, as defined by the PPA and PBGC. 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 2023 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 $96,000, $104,300 and $99,300 if it had withdrawn from the Plan during 2022, 2021 and 2020, respectively. Should the Company actually withdraw from the Plan at a future date, its withdrawal liability payable under the Plan could be higher than the above discussed amounts. The Company’s pension expense for this Plan for first quarter 2024 and 2023 was $704 and $865, respectively. The aforementioned expense includes surcharges of $248 and $305 for first quarter 2024 and 2023, respectively, as required under the amended plan of rehabilitation. The Company’s twelve months pension expense for this Plan for 2023 and 2022 was $3,516 and $3,510, respectively, which includes surcharges of $1,239 and $1,237, respectively. From 2012 through 2020, the Company’s employer contributions were subject to annual 5% compounded surcharge increases. Beginning in 2021, the Plan ceased additional surcharges, but the prior surcharges remain in effect indefinitely. The Plan advised the Company that it is in the process of applying for benefits available to financial troubled plans under the American Rescue Plan Act of 2021. If the application is approved, the Special Financial Assistance funds the plan would receive are expected to have a material effect on the Plan’s assets. The Company’s actuary believes that it still remains unclear if the Plan can remain solvent through the targeted date of 2051 and that the regulations under the aforementioned PBGC financial assistance could result in a higher withdrawal liability even with PBGC financial assistance. The Company is currently unable to determine the ultimate outcome of the above discussed multi- employer union pension matters and therefore is unable to determine the effects on its consolidated financial statements, but the ultimate outcome could have a material adverse effect on the Company’s consolidated results of operations or cash flows in one or more future periods. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Earnings (Loss) | 3 Months Ended |
Mar. 31, 2024 | |
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 December 31, 2023 $ (21,050) $ (2,359) $ 228 $ (1,915) $ 1,883 $ (23,213) Other comprehensive earnings (loss) before reclassifications 320 119 (271) 1,179 — 1,347 Reclassifications from accumulated other comprehensive loss — — 20 311 (121) 210 Other comprehensive earnings (loss) net of tax 320 119 (251) 1,490 (121) 1,557 Balance at March 31, 2024 $ (20,730) $ (2,240) $ (23) $ (425) $ 1,762 $ (21,656) Balance at December 31, 2022 $ (23,795) $ (8,809) $ (215) $ 8 $ 2,642 $ (30,169) Other comprehensive earnings (loss) before reclassifications 1,296 1,890 (29) 101 — 3,258 Reclassifications from accumulated other comprehensive loss — — 66 (70) (144) (148) Other comprehensive earnings (loss) net of tax 1,296 1,890 37 31 (144) 3,110 Balance at March 31, 2023 $ (22,499) $ (6,919) $ (178) $ 39 $ 2,498 $ (27,059) The amounts reclassified from accumulated other comprehensive income (loss) consisted of the following: Details about Accumulated Other Quarter Ended Location of (Gain) Loss Comprehensive Income Components March 31, 2024 March 31, 2023 Recognized in Earnings Investments $ — $ (1) Other income, net Foreign currency derivatives 26 88 Other income, net Commodity derivatives 409 (93) Product cost of goods sold Postretirement and pension benefits (160) (190) Other income, net Total before tax 275 (196) Tax (expense) benefit (65) 48 Net of tax $ 210 $ (148) |
Restricted Cash
Restricted Cash | 3 Months Ended |
Mar. 31, 2024 | |
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 | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and 2023 was 6.8% and 3.5%, respectively. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
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 17 years. Operating lease cost totaled $375 and $235 in the first quarter of 2024 and 2023. Cash paid for operating lease liabilities totaled $268 and $218 in the first quarter of 2024 and 2023. As of March 31, 2024 and 2023, operating lease right-of-use assets were $6,896 and $4,631, respectively, and operating lease liabilities were $7,163 and $4,688, respectively. The weighted-average remaining lease term related to these operating leases was 10.9 years and 15.8 years as of March 31, 2024 and 2023, respectively. The weighted-average discount rate related to the Company’s operating leases was 3.7% and 3.4% as of March 31, 2024 and 2023, respectively. Maturities of the Company’s operating lease liabilities at March 31, 2024 are as follows: $912 in 2024 (rest of year), $1,054 in 2025, $791 in 2026, $709 in 2027, $316 in 2028 and $3,381 thereafter. The Company, as lessor, rents certain commercial real estate to third-party lessees. The March 31, 2024 and 2023 cost related to these leased properties was $51,370 and $51,370, respectively, and the accumulated depreciation related to these leased properties was $18,227 and $17,168, respectively. Terms of such leases, including renewal options, may be extended for up to fifty-six 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 first quarter 2024 and 2023 was $1,587 and $1,221, respectively, and is classified in cash flows from operating activities. A lease with the Company as lessor commenced in April 2024 when a new tenant took occupancy of an industrial building the Company owns in Canada. The lease has an initial term of 15 years and allows the tenant to extend for up to 10 years. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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. The financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting and with the rules and regulations for reporting on Form 10-Q. Accordingly, they do not contain certain information and disclosures required by GAAP for comprehensive financial statements. 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, 2023 (the “2023 Form 10-K”). Results of operations for the period ended March 31, 2024 are not necessarily indicative of results to be expected for the year to end December 31, 2024 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. |
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 $13,616 and $16,233 in first quarter 2024 and 2023, 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 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. |
Recent accounting pronouncements | Recent Accounting Pronouncements In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU No. 2023-07, Segment Reporting (Topic 280): "Improvements to Reportable Segment Disclosures". The amendments in this update affect reportable segment disclosure requirements and apply whether an entity presents one or more reportable segments in accordance with Topic 280. The amendments in this update are effective for annual periods and interim periods beginning after December 15, 2024. In December 2023, the FASB issued ASU No. 2023-09, "Improvements to Income Tax Disclosures". The amendments in this update affect income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The amendments in this update are effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the potential effects of these amendments on its Consolidated Financial Statements and believes the adoption will not significantly impact the presentation of our financial condition, results of operations and disclosures. |
Share Capital and Capital In _2
Share Capital and Capital In Excess of Par Value (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 December 31, 2023 39,999 $ 27,777 29,445 $ 20,448 102 $ (1,992) $ 737,453 Issuance of 3% stock dividend 1,196 830 882 613 3 — 64,800 Conversion of Class B common shares to common shares 16 12 (16) (12) — — — Purchase and retirement of common shares and other — — — — — — — Balance at March 31, 2024 41,211 $ 28,619 30,311 $ 21,049 105 $ (1,992) $ 802,253 Balance at December 31, 2022 39,721 $ 27,584 28,607 $ 19,866 99 $ (1,992) $ 719,606 Issuance of 3% stock dividend 1,185 823 858 596 3 — 50,648 Conversion of Class B common shares to common shares 2 2 (2) (2) — — — Purchase and retirement of common shares and other (37) (26) — — — — (1,578) Balance at March 31, 2023 40,871 $ 28,383 29,463 $ 20,460 102 $ (1,992) $ 768,676 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Measurements | |
Schedule of financial assets and liabilities measured at fair value | Estimated Fair Value March 31, 2024 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 64,886 $ 64,886 $ — $ — Available for sale securities 277,471 4,038 273,433 — Foreign currency derivatives (29) — (29) — Commodity derivatives (559) (559) - — Trading securities 95,957 78,362 17,595 — Total assets measured at fair value $ 437,726 $ 146,727 $ 290,999 $ — Estimated Fair Value December 31, 2023 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 75,915 $ 75,915 $ — $ — Available for sale securities 263,313 4,084 259,229 — Foreign currency derivatives 302 — 302 — Commodity derivatives (2,526) (2,526) — — Trading securities 87,800 70,681 17,119 — Total assets measured at fair value $ 424,804 $ 148,154 $ 276,650 $ — Estimated Fair Value March 31, 2023 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 37,992 $ 37,992 $ — $ — Available for sale securities 262,729 4,583 258,146 — Foreign currency derivatives (233) — (233) — Commodity derivatives 51 51 — — Trading securities 76,039 59,952 16,087 — Total assets measured at fair value $ 376,578 $ 102,578 $ 274,000 $ — |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities | |
Summary of the company's outstanding derivative contracts and their effects on its condensed consolidated statements of financial position | March 31, 2024 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency derivatives $ 9,646 $ 25 $ (54) Commodity derivatives 24,413 211 (770) Total derivatives $ 236 $ (824) December 31, 2023 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency derivatives $ 16,337 $ 302 $ — Commodity derivatives 28,247 16 (2,542) Total derivatives $ 318 $ (2,542) March 31, 2023 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency derivatives $ 17,260 $ 13 $ (246) Commodity derivatives 189 51 — Total derivatives $ 64 $ (246) |
Summary of the effects of derivative instruments on the consolidated statement of earnings and retained earnings, and the condensed consolidated statement of comprehensive earnings | For Quarter Ended March 31, 2024 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 derivatives $ (358) $ (26) $ — Commodity derivatives 1,558 (409) — Total $ 1,200 $ (435) $ — For Quarter Ended March 31, 2023 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 derivatives $ (39) $ (88) $ — Commodity derivatives 134 93 — Total $ 95 $ 5 $ — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Earnings (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023 $ (21,050) $ (2,359) $ 228 $ (1,915) $ 1,883 $ (23,213) Other comprehensive earnings (loss) before reclassifications 320 119 (271) 1,179 — 1,347 Reclassifications from accumulated other comprehensive loss — — 20 311 (121) 210 Other comprehensive earnings (loss) net of tax 320 119 (251) 1,490 (121) 1,557 Balance at March 31, 2024 $ (20,730) $ (2,240) $ (23) $ (425) $ 1,762 $ (21,656) Balance at December 31, 2022 $ (23,795) $ (8,809) $ (215) $ 8 $ 2,642 $ (30,169) Other comprehensive earnings (loss) before reclassifications 1,296 1,890 (29) 101 — 3,258 Reclassifications from accumulated other comprehensive loss — — 66 (70) (144) (148) Other comprehensive earnings (loss) net of tax 1,296 1,890 37 31 (144) 3,110 Balance at March 31, 2023 $ (22,499) $ (6,919) $ (178) $ 39 $ 2,498 $ (27,059) |
Amount reclassified from accumulated other comprehensive income (loss) | Details about Accumulated Other Quarter Ended Location of (Gain) Loss Comprehensive Income Components March 31, 2024 March 31, 2023 Recognized in Earnings Investments $ — $ (1) Other income, net Foreign currency derivatives 26 88 Other income, net Commodity derivatives 409 (93) Product cost of goods sold Postretirement and pension benefits (160) (190) Other income, net Total before tax 275 (196) Tax (expense) benefit (65) 48 Net of tax $ 210 $ (148) |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue Recognition | ||
Selling, marketing and administrative expenses | $ 38,918 | $ 37,499 |
Shipping and Handling | ||
Revenue Recognition | ||
Selling, marketing and administrative expenses | $ 13,616 | $ 16,233 |
Average Shares Outstanding (Det
Average Shares Outstanding (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |||
Apr. 05, 2024 | Apr. 07, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Average Shares Outstanding | ||||
Stock purchases (in shares) | 0 | 37 | ||
Purchase of common shares | $ 1,604 | |||
Stock dividends (as a percent) | 3% | 3% | ||
Stock dividend shares distributed | 2,075 | 2,040 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Incomes Taxes | ||
Effective income tax rate (as a percent) | 21.40% | 23.80% |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Changes in share capital and capital in excess of par value | ||
Balance at the beginning of the period | $ 823,107 | |
Balance at the beginning of the period (in shares) | 102 | |
Purchase and retirement of common shares and other | $ (1,604) | |
Purchase and retirement of common shares and other (in shares) | 0 | (37) |
Balance at the end of the period | $ 834,106 | $ 791,395 |
Balance at the end of the period (in shares) | 105 | 102 |
Stock dividends (as a percent) | 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) |
Balance at the beginning of the period (in shares) | 102 | 99 |
Issuance of 3% stock dividend (in shares) | 3 | 3 |
Balance at the end of the period | $ (1,992) | $ (1,992) |
Balance at the end of the period (in shares) | 105 | 102 |
Capital in Excess of Par Value | ||
Changes in share capital and capital in excess of par value | ||
Balance at the beginning of the period | $ 737,453 | $ 719,606 |
Issuance of 3% stock dividend | 64,800 | 50,648 |
Purchase and retirement of common shares and other | (1,578) | |
Balance at the end of the period | 802,253 | 768,676 |
Class B Common Stock | Common Stock. | ||
Changes in share capital and capital in excess of par value | ||
Balance at the beginning of the period | $ 20,448 | $ 19,866 |
Balance at the beginning of the period (in shares) | 29,445 | 28,607 |
Issuance of 3% stock dividend | $ 613 | $ 596 |
Issuance of 3% stock dividend (in shares) | 882 | 858 |
Conversion of Class B common shares to common shares | $ (12) | $ (2) |
Conversion of Class B common shares to common shares (in shares) | (16) | (2) |
Balance at the end of the period | $ 21,049 | $ 20,460 |
Balance at the end of the period (in shares) | 30,311 | 29,463 |
Common Stock | Common Stock. | ||
Changes in share capital and capital in excess of par value | ||
Balance at the beginning of the period | $ 27,777 | $ 27,584 |
Balance at the beginning of the period (in shares) | 39,999 | 39,721 |
Issuance of 3% stock dividend | $ 830 | $ 823 |
Issuance of 3% stock dividend (in shares) | 1,196 | 1,185 |
Conversion of Class B common shares to common shares | $ 12 | $ 2 |
Conversion of Class B common shares to common shares (in shares) | 16 | 2 |
Purchase and retirement of common shares and other | $ (26) | |
Purchase and retirement of common shares and other (in shares) | (37) | |
Balance at the end of the period | $ 28,619 | $ 28,383 |
Balance at the end of the period (in shares) | 41,211 | 40,871 |
Fair Value Measurements - Bonds
Fair Value Measurements - Bonds (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Fair Value Measurements | |||
Industrial revenue development bonds, carrying amount, approximates fair value | $ 7,500 | $ 7,500 | $ 7,500 |
Cost Basis | Level 2 | |||
Fair Value Measurements | |||
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 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Fair Value Measurements | |||
Cash and cash equivalents | $ 64,886 | $ 75,915 | $ 37,992 |
Fair value measured on a recurring basis | |||
Fair Value Measurements | |||
Cash and cash equivalents | 64,886 | 75,915 | 37,992 |
Available for sale securities | 277,471 | 263,313 | 262,729 |
Trading securities | 95,957 | 87,800 | 76,039 |
Total assets measured at fair value | 437,726 | 424,804 | 376,578 |
Fair value measured on a recurring basis | Foreign currency derivatives. | |||
Fair Value Measurements | |||
Derivative instruments, net | (29) | 302 | (233) |
Fair value measured on a recurring basis | Commodity derivatives | |||
Fair Value Measurements | |||
Derivative instruments, net | (559) | (2,526) | 51 |
Fair value measured on a recurring basis | Level 1 | |||
Fair Value Measurements | |||
Cash and cash equivalents | 64,886 | 75,915 | 37,992 |
Available for sale securities | 4,038 | 4,084 | 4,583 |
Trading securities | 78,362 | 70,681 | 59,952 |
Total assets measured at fair value | 146,727 | 148,154 | 102,578 |
Fair value measured on a recurring basis | Level 1 | Commodity derivatives | |||
Fair Value Measurements | |||
Derivative instruments, net | (559) | (2,526) | 51 |
Fair value measured on a recurring basis | Level 2 | |||
Fair Value Measurements | |||
Available for sale securities | 273,433 | 259,229 | 258,146 |
Trading securities | 17,595 | 17,119 | 16,087 |
Total assets measured at fair value | 290,999 | 276,650 | 274,000 |
Fair value measured on a recurring basis | Level 2 | Foreign currency derivatives. | |||
Fair Value Measurements | |||
Derivative instruments, net | $ (29) | $ 302 | $ (233) |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2026 | Dec. 31, 2025 | Dec. 31, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities | ||||||
Assets | $ 236 | $ 318 | $ 64 | |||
Liabilities | (824) | (2,542) | (246) | |||
Derivatives designated as hedging instruments: | Foreign currency derivatives. | ||||||
Derivative Instruments and Hedging Activities | ||||||
Notional Amounts | 9,646 | 16,337 | 17,260 | |||
Assets | 25 | 302 | 13 | |||
Liabilities | (54) | (246) | ||||
Derivatives designated as hedging instruments: | Commodity derivatives | ||||||
Derivative Instruments and Hedging Activities | ||||||
Notional Amounts | 24,413 | 28,247 | 189 | |||
Assets | 211 | 16 | $ 51 | |||
Liabilities | $ (770) | $ (2,542) | ||||
Forecast | ||||||
Derivative Instruments and Hedging Activities | ||||||
Accumulated comprehensive loss to be reclassified | $ 30 | $ 217 | $ 312 | |||
Forecast | Foreign currency derivatives. | ||||||
Derivative Instruments and Hedging Activities | ||||||
Accumulated other comprehensive gain (loss) to be reclassified | $ (29,000) |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities | ||
Gain (Loss) Recognized in OCI | $ 1,200 | $ 95 |
Reclassified from Accumulated OCI into Earnings | ||
Derivative Instruments and Hedging Activities | ||
Gain (Loss) Reclassified from Accumulated OCI into Earnings | (435) | 5 |
Foreign currency derivatives. | ||
Derivative Instruments and Hedging Activities | ||
Gain (Loss) Recognized in OCI | (358) | (39) |
Foreign currency derivatives. | Reclassified from Accumulated OCI into Earnings | ||
Derivative Instruments and Hedging Activities | ||
Gain (Loss) Reclassified from Accumulated OCI into Earnings | (26) | (88) |
Commodity derivatives | ||
Derivative Instruments and Hedging Activities | ||
Gain (Loss) Recognized in OCI | 1,558 | 134 |
Commodity derivatives | Reclassified from Accumulated OCI into Earnings | ||
Derivative Instruments and Hedging Activities | ||
Gain (Loss) Reclassified from Accumulated OCI into Earnings | $ (409) | $ 93 |
Pension Plans (Details)
Pension Plans (Details) - Multi-employer defined benefit pension plan - Consenting agreement entered with local bargaining union - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Plans | ||||||
Insolvent period | 20 years | |||||
Estimated liability upon withdrawal from plan | $ 96,000 | $ 104,300 | $ 99,300 | |||
Percentage of annual compounded surcharge for rehabilitation | 5% | |||||
Pension expense | $ 704 | $ 865 | $ 3,516 | 3,510 | ||
Surcharges | $ 248 | $ 305 | $ 1,239 | $ 1,237 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Earnings (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accumulated other comprehensive earnings (loss), net of tax | ||
Balance at the beginning of the period | $ 823,422 | |
Balance at the end of the period | 834,420 | $ 791,691 |
Foreign Currency Translation | ||
Accumulated other comprehensive earnings (loss), net of tax | ||
Balance at the beginning of the period | (21,050) | (23,795) |
Other comprehensive earnings (loss) before reclassifications | 320 | 1,296 |
Other comprehensive earnings (loss) net of tax | (320) | (1,296) |
Balance at the end of the period | (20,730) | (22,499) |
Investments | ||
Accumulated other comprehensive earnings (loss), net of tax | ||
Balance at the beginning of the period | (2,359) | (8,809) |
Other comprehensive earnings (loss) before reclassifications | 119 | 1,890 |
Other comprehensive earnings (loss) net of tax | (119) | (1,890) |
Balance at the end of the period | (2,240) | (6,919) |
Foreign Currency Derivatives | ||
Accumulated other comprehensive earnings (loss), net of tax | ||
Balance at the beginning of the period | 228 | (215) |
Other comprehensive earnings (loss) before reclassifications | (271) | (29) |
Reclassifications from accumulated other comprehensive loss | 20 | 66 |
Other comprehensive earnings (loss) net of tax | 251 | (37) |
Balance at the end of the period | (23) | (178) |
Commodity Derivatives | ||
Accumulated other comprehensive earnings (loss), net of tax | ||
Balance at the beginning of the period | (1,915) | 8 |
Other comprehensive earnings (loss) before reclassifications | 1,179 | 101 |
Reclassifications from accumulated other comprehensive loss | 311 | (70) |
Other comprehensive earnings (loss) net of tax | (1,490) | (31) |
Balance at the end of the period | (425) | 39 |
Postretirement and Pension Benefits | ||
Accumulated other comprehensive earnings (loss), net of tax | ||
Balance at the beginning of the period | 1,883 | 2,642 |
Reclassifications from accumulated other comprehensive loss | (121) | (144) |
Other comprehensive earnings (loss) net of tax | 121 | 144 |
Balance at the end of the period | 1,762 | 2,498 |
Accumulated Other Comprehensive Earnings (Loss). | ||
Accumulated other comprehensive earnings (loss), net of tax | ||
Balance at the beginning of the period | (23,213) | (30,169) |
Other comprehensive earnings (loss) before reclassifications | 1,347 | 3,258 |
Reclassifications from accumulated other comprehensive loss | 210 | (148) |
Other comprehensive earnings (loss) net of tax | (1,557) | (3,110) |
Balance at the end of the period | $ (21,656) | $ (27,059) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Earnings (Loss) - Reclassification from AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Other income, net | $ (9,032) | $ (4,780) |
Cost of goods sold | 103,147 | 111,797 |
Total before tax | (20,142) | (17,576) |
Tax (expense) benefit | 4,307 | 4,182 |
Net of tax | (15,835) | (13,394) |
Reclassified from Accumulated OCI into Earnings | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Total before tax | 275 | (196) |
Tax (expense) benefit | (65) | 48 |
Net of tax | 210 | (148) |
Investments | Reclassified from Accumulated OCI into Earnings | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Other income, net | (1) | |
Foreign Currency Derivatives | Reclassified from Accumulated OCI into Earnings | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Other income, net | 26 | 88 |
Commodity Derivatives | Reclassified from Accumulated OCI into Earnings | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Cost of goods sold | $ 409 | $ (93) |
Type of Cost, Good or Service [Extensible List] | 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 | $ (160) | $ (190) |
Bank Loans (Details)
Bank Loans (Details) - Spanish Companies | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Bank Loans | ||
Weighted interest rate (as a percent) | 6.80% | 3.50% |
Maximum | ||
Bank Loans | ||
Maturity period | 120 days |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Leases | |||
Operating lease cost | $ 375 | $ 235 | |
Operating lease payments | 268 | 218 | |
Operating lease right-of-use assets | 6,896 | 4,631 | $ 7,145 |
Operating lease liabilities | $ 7,163 | $ 4,688 | |
Weighted average remaining lease term | 10 years 10 months 24 days | 15 years 9 months 18 days | |
Weighted average discount rate | 3.70% | 3.40% | |
2023 (rest of year) | $ 912 | ||
2024 | 1,054 | ||
2025 | 791 | ||
2026 | 709 | ||
2027 | 316 | ||
Thereafter | $ 3,381 | ||
Lessor, Operating Lease, Existence of Option to Extend [true false] | true | ||
Property, plant and equipment, gross | $ 672,920 | $ 645,662 | $ 670,498 |
Lease income | $ 1,587 | 1,221 | |
Maximum | |||
Leases | |||
Remaining lease term | 17 years | ||
Commercial real estate leased to third parties | |||
Leases | |||
Property, plant and equipment, gross | $ 51,370 | 51,370 | |
Depreciation | $ 18,227 | $ 17,168 | |
Commercial real estate leased to third parties | Maximum | |||
Leases | |||
Lessor, renewal term | 56 years | ||
Industrial building in Canada leased to new tenant | |||
Leases | |||
Amended lease term | 15 years | ||
Industrial building in Canada leased to new tenant | Maximum | |||
Leases | |||
Lessor, renewal term | 10 years |