Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 24, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Core-Mark Holding Company, Inc. | ||
Trading Symbol | CORE | ||
Entity Central Index Key | 1,318,084 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Common Stock, Shares Outstanding | 46,315,364 | ||
Entity Public Float | $ 2,117,773,783 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Current assets: | |||
Cash and cash equivalents | $ 26.4 | $ 12.5 | |
Restricted cash | 15.3 | 8.5 | |
Accounts receivable, net of allowance for doubtful accounts of $7.1 and $10.9 at December 31, 2016 and December 31, 2015, respectively | 365.9 | 272.7 | |
Other receivables, net (Note 4) | 106.5 | 69.4 | |
Inventories, net (Note 5) | 596.6 | 407.4 | |
Deposits and prepayments (Note 4) | 82.8 | 65 | |
Deferred income taxes (Note 10) | 4.7 | 1.8 | |
Total current assets | 1,198.2 | 837.3 | |
Property and equipment, net (Note 6) | 194.7 | 159.5 | |
Goodwill (Note 7) | 36 | 22.9 | |
Other intangible assets, net (Note 7) | 41.5 | 29.5 | |
Other non-current assets, net (Note 4) | 26.6 | 28.1 | |
Total assets | 1,497 | 1,077.3 | |
Current liabilities: | |||
Accounts payable | 119.2 | 129.6 | |
Book overdrafts (Note 2) | 37.9 | 29.2 | |
Cigarette and tobacco taxes payable | 259.8 | 193.6 | |
Accrued liabilities (Note 4) | 131.8 | 106.9 | |
Deferred income taxes (Note 10) | 0.1 | 0.3 | |
Total current liabilities | 548.8 | 459.6 | |
Long-term debt (Note 8) | 347.7 | 60.4 | |
Deferred income taxes (Note 10) | 30 | 18.6 | |
Other long-term liabilities | 11.5 | 10.6 | |
Claims liabilities (Note 2) | 26.8 | 26.6 | |
Pension liabilities (Note 11) | 2.4 | 7.5 | |
Total liabilities | 967.2 | 583.3 | |
Commitments and contingencies (Note 9) | |||
Stockholders’ equity (Note 14): | |||
Common stock, $0.01 par value (100,000,000 shares authorized, 52,227,511 and 51,953,354 shares issued; 46,152,958 and 46,116,670 shares outstanding at December 31, 2016 and December 31, 2015, respectively) | 0.5 | 0.5 | |
Additional paid-in capital | 275.5 | 271.6 | |
Treasury stock at cost (6,074,553 and 5,836,684 shares of common stock at December 31, 2016 and December 31, 2015, respectively) | (70.7) | (61.8) | |
Retained earnings | 338.7 | 300 | |
Accumulated other comprehensive loss (Note 15) | (14.2) | (16.3) | |
Total stockholders’ equity | [1] | 529.8 | 494 |
Total liabilities and stockholders’ equity | $ 1,497 | $ 1,077.3 | |
[1] | Amounts have been rounded for presentation purposes and might differ from unrounded results. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Allowance for doubtful accounts | $ 7.1 | $ 10.9 |
Stockholders’ equity (Note 14): | ||
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 52,227,511 | 51,953,354 |
Common stock, shares outstanding (in shares) | 46,152,958 | 46,116,670 |
Treasury stock, shares (in shares) | 6,074,553 | 5,836,684 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Income Statement [Abstract] | ||||||||||||||
Net sales | $ 3,836.8 | $ 3,993.9 | $ 3,687.4 | $ 3,011.3 | $ 2,815.1 | $ 2,991.6 | $ 2,810.4 | $ 2,452.3 | $ 14,529.4 | $ 11,069.4 | $ 10,280.1 | |||
Cost of goods sold | 3,637.8 | 3,795 | 3,499.5 | 2,860.2 | 2,645 | 2,820 | 2,651.5 | 2,315 | 13,792.5 | 10,431.5 | 9,706.4 | |||
Gross profit | 199 | 198.9 | 187.9 | 151.1 | 170.1 | 171.6 | 158.9 | 137.3 | 736.9 | 637.9 | 573.7 | |||
Warehousing and distribution expenses | 116.2 | 117.4 | 106 | 91.6 | 91.7 | 92.8 | 88.6 | 79.5 | 431.2 | 352.6 | 318.4 | |||
Selling, general and administrative expenses | 50.3 | 57.6 | 53 | 49.4 | 48.4 | 52.8 | 47.5 | 47.3 | 210.3 | 196 | 184.4 | |||
Amortization of intangible assets | 1.5 | 1.7 | 1.2 | 0.9 | 0.8 | 0.6 | 0.6 | 0.6 | 5.3 | 2.6 | 2.6 | |||
Total operating expenses | 168 | 176.7 | 160.2 | 141.9 | 140.9 | 146.2 | 136.7 | 127.4 | 646.8 | 551.2 | 505.4 | |||
Income from operations | 31 | 22.2 | 27.7 | 9.2 | 29.2 | 25.4 | 22.2 | 9.9 | 90.1 | 86.7 | 68.3 | |||
Interest expense | (2) | (1.5) | (1) | (0.8) | (0.6) | (0.6) | (0.7) | (0.6) | (5.3) | (2.5) | (2.4) | |||
Interest income | 0.1 | 0 | 0 | 0.1 | 0.1 | 0.1 | 0.1 | 0.2 | 0.2 | 0.5 | 0.6 | |||
Foreign currency transaction gains (losses), net | 0.6 | (0.5) | (0.3) | 0.7 | (0.5) | (0.7) | (0.2) | (0.4) | 0.5 | (1.8) | (0.1) | |||
Income before income taxes | 29.7 | 20.2 | 26.4 | 9.2 | 28.2 | 24.2 | 21.4 | 9.1 | 85.5 | 82.9 | 66.4 | |||
Provision for income taxes (Note 10) | (11) | (6.7) | (10.1) | (3.5) | (10.5) | (9.1) | (8.2) | (3.6) | (31.3) | (31.4) | (23.7) | |||
Net income | $ 18.7 | $ 13.5 | $ 16.3 | $ 5.7 | $ 17.7 | $ 15.1 | $ 13.2 | $ 5.5 | $ 54.2 | [1] | $ 51.5 | [1] | $ 42.7 | [1] |
Basic net income per common share (in dollars per share) | $ 0.41 | $ 0.29 | $ 0.35 | $ 0.12 | $ 0.39 | $ 0.33 | $ 0.29 | $ 0.12 | $ 1.17 | $ 1.12 | $ 0.93 | |||
Diluted net income per common share (in dollars per share) | $ 0.41 | $ 0.29 | $ 0.35 | $ 0.12 | $ 0.38 | $ 0.33 | $ 0.29 | $ 0.12 | $ 1.17 | $ 1.11 | $ 0.92 | |||
Basic weighted-average shares (in shares) | 46.2 | 46.3 | 46.3 | 46.4 | 46.4 | 46.2 | 46.2 | 46.4 | 46.3 | 46.2 | 46.2 | |||
Diluted weighted-average shares (in shares) | 46.4 | 46.5 | 46.5 | 46.6 | 46.8 | 46.6 | 46.6 | 46.6 | 46.5 | 46.6 | 46.6 | |||
[1] | Amounts have been rounded for presentation purposes and might differ from unrounded results. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | [1] | $ 54.2 | $ 51.5 | $ 42.7 |
Other comprehensive income (loss), net of tax: | ||||
Defined benefit plan adjustments (Note 15) | 0.2 | 0.2 | (2.9) | |
Foreign currency translation gain (loss) | 1.9 | (4.9) | (3) | |
Other comprehensive income (loss), net of tax | [1] | 2.1 | (4.7) | (5.9) |
Comprehensive income | $ 56.3 | $ 46.8 | $ 36.8 | |
[1] | Amounts have been rounded for presentation purposes and might differ from unrounded results. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock Issued | Additional Paid-in Capital | Treasury Stock | Retained Earnings | AOCI Attributable to Parent | |
Beginning Balance, Shares, Issued (in shares) at Dec. 31, 2013 | [1] | 51.2 | 5.2 | ||||
Beginning Balance, Stockholders' Equity at Dec. 31, 2013 | [1] | $ 434 | $ 0.5 | $ 254.3 | $ (44.6) | $ 229.5 | $ (5.7) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | [1] | 42.7 | 42.7 | ||||
Other comprehensive (loss) income, net of tax | [1] | (5.9) | (5.9) | ||||
Dividends declared | [1] | (10.8) | (10.8) | ||||
Stock-based compensation expense | [1] | 6.1 | 6.1 | ||||
Cash proceeds from exercise of common stock options (in shares) | [1] | 0.2 | |||||
Cash proceeds from exercise of common stock options, value | [1] | 2.1 | 2.1 | ||||
Excess tax deductions associated with stock-based compensation | [1] | 2.8 | 2.8 | ||||
Issuance of stock based instruments, net of shares withheld for employee taxes (in shares) | [1] | 0.2 | |||||
Issuance of stock based instruments, net of shares withheld for employee taxes, value | [1] | (1.7) | (1.7) | ||||
Repurchase of common stock (in shares) | [1] | (0.4) | |||||
Repurchase of common stock, value | [1] | (8) | $ (8) | ||||
Ending Balance, Shares, Issued (in shares) at Dec. 31, 2014 | [1] | 51.6 | 5.6 | ||||
Ending Balance, Stockholders' Equity at Dec. 31, 2014 | [1] | 461.3 | $ 0.5 | 263.6 | $ (52.6) | 261.4 | (11.6) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | [1] | 51.5 | 51.5 | ||||
Other comprehensive (loss) income, net of tax | [1] | (4.7) | (4.7) | ||||
Dividends declared | [1] | (12.9) | (12.9) | ||||
Stock-based compensation expense | [1] | 8.7 | 8.7 | ||||
Cash proceeds from exercise of common stock options (in shares) | [1] | 0.2 | |||||
Cash proceeds from exercise of common stock options, value | [1] | 0.4 | 0.4 | ||||
Excess tax deductions associated with stock-based compensation | [1] | 2.2 | 2.2 | ||||
Issuance of stock based instruments, net of shares withheld for employee taxes (in shares) | [1] | 0.2 | |||||
Issuance of stock based instruments, net of shares withheld for employee taxes, value | [1] | (3.3) | (3.3) | ||||
Repurchase of common stock (in shares) | [1] | (0.2) | |||||
Repurchase of common stock, value | [1] | (9.2) | $ (9.2) | ||||
Ending Balance, Shares, Issued (in shares) at Dec. 31, 2015 | [1] | 52 | 5.8 | ||||
Ending Balance, Stockholders' Equity at Dec. 31, 2015 | [1] | 494 | $ 0.5 | 271.6 | $ (61.8) | 300 | (16.3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | [1] | 54.2 | 54.2 | ||||
Other comprehensive (loss) income, net of tax | [1] | 2.1 | 2.1 | ||||
Dividends declared | [1] | (15.5) | (15.5) | ||||
Stock-based compensation expense | [1] | 6.1 | 6.1 | ||||
Cash proceeds from exercise of common stock options (in shares) | [1] | 0.1 | |||||
Cash proceeds from exercise of common stock options, value | [1] | 0.3 | 0.3 | ||||
Excess tax deductions associated with stock-based compensation | [1] | 2.9 | 2.9 | ||||
Issuance of stock based instruments, net of shares withheld for employee taxes (in shares) | [1] | 0.1 | |||||
Issuance of stock based instruments, net of shares withheld for employee taxes, value | [1] | (5.4) | (5.4) | ||||
Repurchase of common stock (in shares) | [1] | (0.2) | |||||
Repurchase of common stock, value | [1] | (8.9) | $ (8.9) | ||||
Ending Balance, Shares, Issued (in shares) at Dec. 31, 2016 | [1] | 52.2 | 6 | ||||
Ending Balance, Stockholders' Equity at Dec. 31, 2016 | [1] | $ 529.8 | $ 0.5 | $ 275.5 | $ (70.7) | $ 338.7 | $ (14.2) |
[1] | Amounts have been rounded for presentation purposes and might differ from unrounded results. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Cash flows from operating activities: | ||||
Net income | [1] | $ 54.2 | $ 51.5 | $ 42.7 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||
LIFO and inventory provisions | 13.2 | 2 | 16 | |
Amortization of debt issuance costs | 0.5 | 0.3 | 0.3 | |
Stock-based compensation expense | 6.1 | 8.7 | 6.1 | |
Bad debt expense, net | 2 | 1.3 | 2.2 | |
Depreciation and amortization | 42.9 | 37.9 | 32 | |
Foreign currency transaction (gains) losses, net | (0.5) | 1.8 | 0.1 | |
Deferred income taxes | 8.4 | 8.9 | (3) | |
Settlement charge | 1.3 | 1.6 | 0 | |
Changes in operating assets and liabilities: | ||||
Accounts receivable, net | (59.2) | (28.1) | (13.8) | |
Other receivables, net | (37) | (8.9) | (3) | |
Inventories, net | (180.4) | 1.5 | (50.6) | |
Deposits, prepayments and other non-current assets | (19.9) | (25.9) | 5.7 | |
Excess tax deductions associated with stock-based compensation | (2.9) | (2.2) | (2.8) | |
Accounts payable | (11) | 4 | 20.6 | |
Cigarette and tobacco taxes payable | 65.5 | 13.8 | 9.1 | |
Pension, claims, accrued and other long-term liabilities | 18.8 | 9 | 4.9 | |
Net cash (used in) provided by operating activities | (98) | 77.2 | 66.5 | |
Cash flows from investing activities: | ||||
Acquisition of business, net of cash acquired | (88.4) | (9) | (1) | |
Change of restricted cash | (6.8) | 4.5 | (0.9) | |
Additions to property and equipment, net | (54.3) | (30.3) | (53.9) | |
Capitalization of software and related development costs | (7.7) | (8.7) | (5.3) | |
Proceeds from sale of property and equipment | 0 | 0.3 | 0 | |
Net cash used in investing activities | (157.2) | (43.2) | (61.1) | |
Cash flows from financing activities: | ||||
Borrowings under revolving credit facility | 1,638.7 | 936.2 | 488.3 | |
Repayments under revolving credit facility | (1,349.7) | (945.1) | (478.7) | |
Payments of financing costs | (2) | (0.4) | 0 | |
Dividends paid | (15.5) | (12.8) | (10.7) | |
Payments of capital leases | (2.4) | (2.3) | (1.7) | |
Repurchases of common stock | (8.9) | (9.2) | (8) | |
Proceeds from exercise of common stock options | 0.3 | 0.4 | 2.1 | |
Tax withholdings related to net share settlements of restricted stock units | (5.4) | (3.3) | (1.7) | |
Excess tax deductions associated with stock-based compensation | 2.9 | 2.2 | 2.8 | |
Book overdrafts, net | 8.7 | 0.1 | 6.2 | |
Net cash provided by (used in) financing activities | 266.7 | (34.2) | (1.4) | |
Effects of changes in foreign exchange rates | 2.4 | (1.7) | (0.6) | |
Change in cash and cash equivalents | 13.9 | (1.9) | 3.4 | |
Cash and cash equivalents, beginning of period | 12.5 | 14.4 | 11 | |
Cash and cash equivalents, end of period | 26.4 | 12.5 | 14.4 | |
Cash paid during the period for: | ||||
Income taxes paid, net | 20.9 | 26.8 | 22 | |
Interest paid | 3.7 | 1.3 | 1.1 | |
Unpaid property and equipment purchases included in accrued liabilities | 2.9 | 5.1 | 1.4 | |
Non-cash capital lease obligations incurred | $ 0.1 | $ 5.4 | $ 4.7 | |
[1] | Amounts have been rounded for presentation purposes and might differ from unrounded results. |
Summary of Company Information
Summary of Company Information | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Company Information | Summary of Company Information Busines s Core-Mark Holding Company, Inc. and subsidiaries (referred to herein as “the Company” or “Core-Mark”) is one of the largest marketers of fresh and broad-line supply solutions to the convenience retail industry in North America. The Company offers a full range of products, marketing programs and technology solutions to approximately 43,000 customer locations in the United States (“U.S.”) and Canada. The Company’s customers include traditional convenience stores, drug stores, grocery stores, liquor stores and other specialty and small format stores that carry convenience products. The Company’s product offering includes cigarettes, other tobacco products ("OTP"), candy, snacks, fast food, groceries, fresh products, dairy, bread, beverages, general merchandise and health and beauty care products. The Company operates a network of 30 distribution centers in the U.S. and Canada (excluding two distribution facilities it operates as a third party logistics provider). Twenty-five of the Company’s distribution centers are located in the U.S. and five are located in Canada. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The consolidated financial statements include Core-Mark and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in the consolidated financial statements. On May 25, 2016 , the Board of Directors approved a two-for-one stock split of the Company’s outstanding common stock, effected through a stock dividend. The additional shares were distributed on June 27, 2016 to stockholders of record at the close of business on June 9, 2016 . All references made to share or per share amounts in the accompanying consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect this two-for-one stock split for all periods presented. During 2016, the Company identified an error in the presentation of borrowings and repayments of the Company’s revolving credit facility in the previously issued consolidated statements of cash flows. The Company corrected the presentation of borrowings and repayments on the revolving credit facility to reflect them on a gross basis, rather than on a net basis, within the financing activities section of the consolidated statements of cash flows. The correction did not change previously reported total cash provided by (or used from) financing activities. Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company considers the allowance for doubtful accounts, vendor rebates and promotional allowances, claims liabilities and insurance recoverables, valuation of pension assets and obligations, valuation of long-lived assets and goodwill, realizability of deferred income taxes and uncertain tax positions to be those estimates which involve a higher degree of judgment and complexity. Actual results could differ from those estimates. Revenue Recognition The Company recognizes revenue at the point at which the product is delivered and title passes to the customer. The Company includes fees charged to customers for shipping and handling activities in net sales and the related costs in cost of goods sold. Revenues are reported net of customer incentives, discounts and returns, including an allowance for estimated returns. The allowance for sales returns is calculated based on the Company’s returns experience, which has historically not been significant. The Company also earns management service fee revenue from operating third party distribution centers belonging to certain customers. These revenues represented less than 1% of the Company’s total net sales for 2016 , 2015 and 2014 . Service fee revenue is recognized as earned on a monthly basis in accordance with the terms of the management service fee contracts and is included in net sales on the accompanying consolidated statements of operations. Customers ’ Sales Incentives The Company also provides sales allowances or discounts to its customers on a regular basis. These customers’ sales incentives are recorded as a reduction to net sales as the sales incentive is earned by the customer. Additionally, the Company may provide allowances for the customers' commitments to continue using Core-Mark as the supplier. These incentives are known as racking allowances. These allowances may be paid at the inception of the contract or on a periodic basis. Allowances paid at the inception of the contract are deferred and amortized over the period of the distribution agreement as a reduction to sales. Vendor Rebates and Promotional Allowances Periodic payments from vendors in various forms including rebates, promotional allowances and volume discounts, are reflected in the carrying value of the related inventory when earned and in cost of goods sold when the related merchandise is sold. Up-front consideration received from vendors for purchase or other commitments is initially deferred and amortized ratably to cost of goods sold as the performance of the activities specified by the vendor is completed. Cooperative marketing incentives received from vendors to fund specific programs first offset the costs of the program, and to the extent the consideration exceeds the costs relating to the program, the excess funds are recorded as reductions to cost of goods sold. These amounts are recorded in the period the related promotional or merchandising programs are provided. Certain vendor incentive promotions require the Company to make assumptions and judgments regarding, for example, the likelihood of achieving market share levels or attaining specified levels of purchases. Vendor incentives are at the discretion of the Company’s vendors and can fluctuate due to changes in vendor strategies and market requirements. Vendor rebates and promotional allowances earned totaled $221.2 million , $191.4 million and $162.8 million in 2016 , 2015 and 2014 , respectively. Excise Taxes The Company is responsible for collecting and remitting state, local and provincial excise taxes on cigarette and other tobacco products. These excise taxes are a significant component of the Company’s net sales and cost of goods sold. In 2016 , 2015 and 2014 , approximately $3.0 billion , $2.2 billion and $2.1 billion , or 21% , 20% and 21% of the Company’s net sales, and approximately 22% , 21% and 22% of its cost of goods sold, respectively, represented excise taxes. Federal excise taxes are levied on the manufacturers who, in turn, pass the tax on to the Company as part of the product cost. As a result, federal excise taxes are not a component of the Company’s excise taxes. Stock-based Compensation The Company accounts for stock-based compensation expense related to restricted stock unit ("RSU") awards, performance shares and stock options based on the grant-date fair value of the awards. For service based awards, the Company recognizes the expense using a straight-line method. For performance based awards, the Company recognizes the expense ratably based on the achievement of performance conditions. Although the Company has not granted stock options since 2011, the Company uses the Black-Scholes option valuation model to determine the fair value of stock option awards ( see Note 13 - Stock Incentive Plans ). Determining the appropriate fair value model and calculating the fair value of stock option awards at the grant date requires considerable judgment, including estimating stock price volatility, expected life of share awards and forfeiture rates. The Company develops its estimates based on historical data and market information, which can change significantly over time. Pension and Other Post-retirement Benefit Costs Pension and other post-retirement benefit costs are estimated on the basis of annual valuations by an independent actuary. Adjustments arising from plan amendments, changes in assumptions, and experience gains and losses are amortized over the expected average remaining service life of the employee group. The Company offers certain plan participants the option to receive a lump sum payment in lieu of future annuity pension benefits. Acceptance of the lump sum payment by plan participants may result in the Company recognizing a settlement charge and an adjustment in the projected benefit plan obligation. The Company recognizes an asset for the plan’s overfunded status or a liability for the plan’s underfunded status on its consolidated balance sheet as of the end of each fiscal year. The Company determines the plan’s funded status by measuring its assets and its obligations and recognizes changes in the funded status of its defined benefit post-retirement plan in the year in which the change occurred. On September 14, 2016, the Board of Directors approved a motion to terminate the Company’s qualified defined-benefit pension plan. The Company expects its pension liabilities will be settled through either lump sum payments or purchased annuities by December 31, 2017 ( see Note 11 - Employee Benefit Plans ) . Income Taxes Income taxes are accounted for using the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when the Company does not consider it more likely than not that some portion or all of the deferred tax assets will be realized. A tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. The Company has established an estimated liability for income tax exposures that arise and meet the criteria for accrual. The Company prepares and files tax returns based on its interpretation of tax laws and regulations and records estimates based on these judgments and interpretations. In the normal course of business, the Company’s tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax and interest assessments by these taxing authorities. Inherent uncertainties exist in estimates of tax contingencies due to changes in tax law resulting from legislation, regulation and/or as concluded through the various jurisdictions’ tax court systems. The Company classifies interest and penalties related to income taxes as income tax expense ( see Note 10 - Income Taxes ). Earnings Per Share Basic earnings per share is calculated by dividing net income by the weighted-average number of common shares outstanding during each period, excluding unvested RSUs and performance shares. Diluted earnings per share is calculated by dividing net income by weighted-average shares outstanding including common stock equivalents. Common stock equivalents include stock options, RSUs and performance based awards if the impact is dilutive, using the treasury stock method ( see Note 12 - Earnings Per Share ) . Cash, Cash Equivalents, Restricted Cash and Book Overdrafts Cash and cash equivalents include cash, money market funds and highly liquid investments with original maturities of three months or less. Restricted cash represents funds collected and set aside in trust as required by one of the Canadian provincial taxing authorities to secure amounts payable for cigarette and tobacco excise taxes. The Company had book overdrafts of $37.9 million and $29.2 million at December 31, 2016 and 2015 , respectively. Book overdrafts consist primarily of outstanding checks in excess of cash on hand in the corresponding bank accounts at the end of the period. The Company’s policy has been to fund these outstanding checks as they clear with cash held on deposit with other financial institutions or with borrowings under the Company’s revolving credit facility. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable consists of trade receivables from customers. The Company evaluates the collectability of accounts receivable and determines the appropriate allowance for doubtful accounts based on historical experience and a review of specific customer accounts. Account balances are charged against the allowance when collection efforts have been exhausted and the receivable is deemed uncollectible ( see Note 4 - Other Consolidated Balance Sheet Accounts Detail ). Other Receivables Other receivables consist primarily of amounts due from vendors for promotional and other incentives, which are accrued as earned. The Company evaluates the collectability of amounts due from vendors and determines the appropriate allowance for doubtful accounts based on historical experience and a review of specific amounts outstanding ( see Note 4 - Other Consolidated Balance Sheet Accounts Detail ). Inventories Inventories consist of finished goods, including cigarettes and other tobacco products, food and other consumable products held for re-sale and are valued at the lower of cost or market. In the Company’s U.S. divisions, cost is determined primarily on a last-in, first-out (“LIFO”) basis. The Company uses the link-chain dollar value LIFO method. The inventory price index computation ("IPIC") is used to calculate LIFO inflation indices for which the LIFO inflation source is the producer price indices ("PPI") published by the US Bureau of Labor Statistics ("BLS"). The Company uses the IPIC pooling method for which LIFO pools are established for each PPI in accordance with current regulations. When the Company is aware of material price increases or decreases from manufacturers, the Company estimates the PPI for the respective period if it determines the price increase is not fully reflected in the PPI in order to more accurately reflect inflation rates. Under the LIFO method, current costs of goods sold are matched against current sales. Inventories in the Company’s Canadian divisions are valued on a first-in, first-out ("FIFO") basis, as LIFO is not a permitted inventory valuation method in Canada. Approximately 82% and 88% of the Company’s inventory was valued on a LIFO basis at December 31, 2016 and 2015 , respectively. The Company reduces inventory value for spoiled, aged and unrecoverable inventory based on amounts on-hand and historical experience ( see Note 5 - Inventories , Net ). Property and Equipment Property and equipment are recorded at cost, net of accumulated depreciation and amortization. Depreciation and amortization on new purchases are computed using the straight-line method over the assets’ estimated useful lives. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life of the property or the term of the lease including available renewal option terms if it is reasonably assured that those options will be exercised. Upon retirement or sale, the cost and related accumulated depreciation of the assets are removed and any related gain or loss is reflected in the consolidated statements of operations. Maintenance and repairs are charged to expense as incurred (s ee Note 6 - Property and Equipment, Net ). The Company uses the following depreciable lives for its property and equipment: Useful Life in Years Office furniture and equipment 3-10 Delivery equipment 4-10 Warehouse equipment 5-15 Leasehold improvements 3-25 Buildings 15-25 Other Long-lived Assets Intangible assets with definite lives are generally amortized on a straight-line basis over the following lives: Useful Life in Years Customer relationships 10-15 Non-competition agreements 1-5 Trade names 1-2 Internally developed and other purchased software 3-7 The Company reviews its long-lived assets for indicators of impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. An impairment of long-lived assets exists when the carrying amount of a long-lived asset, or asset group, exceeds its fair value, and impairment losses are recorded when the carrying amount of the impaired asset is not recoverable. Recoverability is determined by comparing the carrying amount of the asset (or asset group) to the undiscounted cash flows which are expected to be generated from its use. The Company has determined that it has five asset groupings based on a review of its assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. During 2016 , 2015 and 2014 , the Company did not record impairment charges related to long-lived assets ( see Note 6 - Property and Equipment, Net and Note 7 - Goodwill and Other Intangible Assets, Net ). Goodwill Goodwill represents the excess of cost over the fair value of net assets acquired in a business combination. Goodwill is not amortized. The Company tests goodwill for impairment annually as of October 1 or whenever events or circumstances indicate that it is more likely than not that the fair value of a reporting unit is below its carrying amount. The Company’s reporting units are its U.S. operations and Canadian operations. Whenever events or circumstances change, the Company assesses the related qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. The tests to evaluate goodwill for impairment are performed at the reporting unit level. In the first step of the quantitative impairment test, the Company compares the fair value of the reporting unit to its carrying value. If the fair value of the reporting unit is less than its carrying value, the Company performs a second step to determine the implied fair value of goodwill associated with the reporting unit. If the carrying value of goodwill exceeds the implied fair value of goodwill, such excess represents the amount of goodwill for which an impairment loss would be recorded. Determining the fair value of a reporting unit involves the use of significant estimates and assumptions. The estimated fair value of each reporting unit is based on the discounted cash flow method, which is based on historical and forecasted amounts specific to each reporting unit and considers net sales, gross profit, income from operations and cash flows and general economic and market conditions, as well as the impact of planned business and operational strategies and other estimates and assumptions for future growth rates, working capital and capital expenditures. The Company bases its fair value estimates on assumptions it believes to be reasonable at the time, but such assumptions are subject to inherent uncertainty. Measuring the fair value of reporting units constitutes a Level 3 measurement under the fair value hierarchy. There has been no impairment of goodwill for any periods presented ( see Note 7 - Goodwill and Other Intangible Assets, Net ) . Computer Software Developed or Obtained for Internal Use The Company accounts for computer software systems, namely SAP Enterprise Resource Planning modules, the Company's proprietary Distribution Center Management System (“DCMS”), and software purchased from third-party vendors, using certain criteria under which costs associated with this software are either expensed or capitalized and amortized over periods from three to seven years. During 2016 , 2015 and 2014 the Company capitalized approximately $7.2 million , $9.5 million and $4.4 million , respectively, of costs related to software developed or obtained for internal use ( see Note 7 - Goodwill and Other Intangible Assets, Net ). Debt Issuance Costs Debt issuance costs related to the Company's revolving credit facility ("Credit Facility") are deferred and amortized as interest expense over the term of the related debt agreement on a straight-line basis, which approximates the effective interest method. Debt issuance costs are included in deposits and prepayments and other non-current assets on the accompanying consolidated balance sheets. Total unamortized debt issuance costs were $2.3 million and $1.2 million at December 31, 2016 and 2015 , respectively ( see Note 8 - Long-term Debt ). Claims Liabilities and Insurance Recoverables The Company maintains reserves related to health and welfare, workers’ compensation, auto and general liability programs that are principally self-insured. The Company currently has a per-claim deductible of $500,000 for its workers’ compensation, general and auto liability self-insurance programs and a per-person annual claim deductible of $250,000 for its health and welfare program. The Company purchases insurance to cover the claims that exceed the deductible up to policy limits. Self-insured reserves are for pending or future claims that fall outside the policy and reserves include an estimate of expected settlements on pending claims and a provision for claims incurred but not reported. Estimates for workers’ compensation, auto and general liability insurance are based on the Company’s assessment of potential liability using an annual actuarial analysis of available information with respect to pending claims, historical experience and current cost trends. Reserves for claims under these programs are included in accrued liabilities (current portion) and claims liabilities, net of current portion on the accompanying consolidated balance sheets. Claims liabilities and the related recoverables from insurance carriers for estimated claims in excess of the deductible and other insured events are presented in their gross amounts on the accompanying consolidated balance sheets because there is no right of offset. The carrying values of claims liabilities and insurance recoverables are not discounted. Insurance recoverables are included in other receivables, net and other non-current assets, net. The Company had gross liabilities for health and welfare, workers’ compensation, auto and general liability self-insurance obligations in the amounts of $26.8 million long-term and $13.4 million short-term at December 31, 2016 , and $26.6 million long-term and $11.9 million short-term at December 31, 2015 . The Company’s liabilities net of insurance recoverables were $13.9 million long-term and $11.3 million short-term at December 31, 2016 , and $12.2 million long-term and $10.4 million short-term at December 31, 2015 . Foreign Currency Translation The operating assets and liabilities of the Company’s Canadian operations, whose functional currency is the Canadian dollar, are translated to U.S. dollars at exchange rates in effect at period-end. Translation gains and losses are recorded in Accumulated Other Comprehensive Income ("AOCI") as a component of stockholders’ equity. Revenue and expenses from Canadian operations are translated using the monthly average exchange rates in effect during the period in which the transactions occur. The Company also recognizes gains or losses on foreign currency exchange transactions between its Canadian and U.S. operations, net of applicable income taxes, in the consolidated statements of operations. The Company currently does not hedge our Canadian foreign currency cash flow. Total Comprehensive Income Comprehensive income consists of net income and other transactions recorded directly to stockholders’ equity that are excluded from net income. Other comprehensive income is comprised of defined benefit plan adjustments and foreign currency translation adjustments related to the Company’s foreign operations in Canada, whose functional currency is not the U.S. dollar ( see Note 15 - Other Comprehensive Income (Loss) ) . Fair Value Measurements The Company’s financial assets and liabilities are recognized or disclosed at fair value in the financial statements on a recurring basis. The carrying amount of cash equivalents, restricted cash, trade accounts receivable, other receivables, trade accounts payable, cigarette and tobacco taxes payable and other accrued liabilities approximates fair value because of the short maturity of these financial instruments. The carrying amount of the Company’s variable rate debt approximates fair value. The Company calculates the fair value of certain assets related to acquisitions and cash based pension plan assets using assumptions that market participants would use in pricing these assets ( see Note 11 - Employee Benefit Plans ). The Company uses a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value and gives precedence to observable inputs in determining fair value. An instrument’s level within the hierarchy is based on the lowest level of any significant input to the fair value measurement. The following levels were established for each input: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 - Unobservable inputs for the asset or liability, which reflect the Company’s own assumptions about what market participants would assume when pricing the asset or liability. Business Combinations The Company accounts for all business combinations using the acquisition method of accounting, which allocates the fair value of the purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions. Management may further adjust the acquisition date fair values for a period of up to one year from the date of acquisition. Acquisition related expenses and transaction costs associated with business combinations are expensed as incurred ( see Note 3 - Acquisition ). Risks and Concentrations Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash investments, accounts receivable and other receivables. The Company places its cash and cash equivalents in short-term instruments with high quality financial institutions and limits the amount of credit exposure in any one financial instrument. The Company pursues amounts and incentives due from vendors in the normal course of business and is often allowed to deduct these amounts and incentives from payments made to vendors. A credit review is completed for new customers and ongoing credit evaluations of each customer’s financial condition are performed periodically, with reserves maintained for potential credit losses. Credit limits given to customers are based on a risk assessment of their ability to pay and other factors. Accounts receivable are typically not collateralized, but the Company may require prepayments or other guarantees whenever deemed necessary. Murphy U.S.A., who the Company began servicing in 2016, is the Company's largest customer and accounted for 12.0% of total net sales in 2016 . Alimentation Couche-Tard, Inc. (“Couche-Tard”), the Company’s second largest customer, accounted for 11.4% , 14.2% and 14.5% of total net sales in 2016 , 2015 and 2014 , respectively. In addition, no single customer accounted for 10% or more of accounts receivable at December 31, 2016 and 2015 . The Company has two significant suppliers: Philip Morris USA, Inc. and R.J. Reynolds Tobacco Company. Product purchases from Philip Morris USA, Inc. accounted for approximately 35% , 29% and 28% of total product purchases in 2016 , 2015 and 2014 , respectively. Product purchases from R.J. Reynolds Tobacco Company were approximately 23% , 17% and 14% of total product purchases in 2016 , 2015 and 2014 , respectively. Cigarette sales represented 71.1% , 68.0% and 67.5% of net sales in 2016 , 2015 and 2014 , respectively, and contributed 29.9% , 28.3% and 27.1% of gross profit in 2016 , 2015 and 2014 , respectively. The increase in cigarette sales as a percentage of total net sales and gross profit was due primarily to market share gains in 2016, including the addition of Murphy U.S.A., which has a higher sales mix of tobacco products compared to the rest of our business. Although cigarettes represent a significant portion of the Company’s total net sales, the majority of its gross profit is generated from food/non-food products. Recent Accounting Standards or Updates Not Yet Effective On May 28, 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09 (ASU 2014-09), Revenue from Contracts with Customers: Topic 606 (“ASU 2014-09”), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. This standard is effective for the Company in the first quarter of 2018. The Company's preliminary assessment supports that financial statement impacts may include: capitalization of successful contract costs, recognition of contract assets and liabilities for certain contracts that are performed but not completed, and the timing of recognition of variable consideration received from vendors and paid to customers. The Company expects to finalize its assessment and approach to adopting ASU 2014-09 on its consolidated financial statements by June 30, 2017. On November 20, 2015, the FASB issued ASU No.2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes: Topic 740 (“ASU 2015-17”). The new guidance requires entities with a classified balance sheet to present all deferred tax assets and liabilities as non-current. ASU 2015-17 requires either prospective or retrospective application and is effective for annual periods beginning after December 15, 2016. The adoption of ASU 2015-17 will not have a material impact on the presentation of its consolidated financial statements. On February 25, 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which supersedes existing lease guidance. The new guidance increases transparency by requiring lessees to recognize right-of-use assets and corresponding lease liabilities on the balance sheet. This standard is effective for annual periods beginning after December 15, 2018, although early adoption is permitted. The Company believes the new standard will have a material impact on its consolidated balance sheets. The Company is currently quantifying the impact and evaluating its approach to adopting ASU 2016-02 on its consolidated financial statements. On March 30, 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation ( Topic 718 ): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). The new guidance simplifies several aspects of how companies account for share-based compensation, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statements of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016. ASU 2016-09 will result in the Company recognizing excess tax benefits or deficiencies in net income instead of being capitalized as additional paid-in capital. We expect such impact to be approximately $1.6 million in 2017. On June 16, 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). The new guidance replaces the current incurred loss impairment approach with a methodology that incorporates all expected credit loss estimates, resulting in more timely recognition of losses. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, although early adoption is permitted. The Company has determined the adoption of ASU 2016-13 will not have a material impact on its consolidated financial statements. On August 26, 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). The new guidance addresses eight specific cash flow presentation and classification issues in the statement of cash flows to reduce existing diversity in practice. ASU 2016-15 is effective for annual periods beginning after December 15, 2017, although early adoption is permitted. The Company has determined the adoption of ASU 2016-15 will not have a material impact on its consolidated financial statements. On November 17, 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash ("ASU 2016-18"). The new guidance requires the Statements of Cash Flows to reconcile the changes in the total of cash, ca |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition Acquisition of Pine State Convenience On June 6, 2016 , the Company acquired substantially all of the assets of Pine State Convenience ("Pine State"), a division of Pine State Trading Company, located in Gardiner, Maine. The acquisition was accounted for as a business combination in accordance with ASC 805 - Business Combinations . The acquisition increased the Company’s market presence primarily in the Northeastern U.S. and further enhanced the Company’s ability to cost effectively service national and regional retailers. The total purchase consideration was $88.4 million which was paid at closing and funded through borrowings under the Company's revolving credit facility. The following table presents the assets acquired and liabilities assumed, based on their fair values and purchase consideration (in millions): June 6, 2016 Accounts receivable $ 35.5 Inventories 21.2 Deposits and prepayments, and other 0.9 Property and equipment 10.3 Goodwill 13.1 Other intangible assets 10.2 Less: Accrued liabilities, and other (2.8 ) Total consideration $ 88.4 The Company determined the estimated fair values of intangible assets acquired with the assistance of independent valuation consultants. The Company finalized its valuation of its beginning goodwill and intangible assets during the fourth quarter ended December 31, 2016 . Based on the valuation, intangible assets acquired include the following (in millions): Fair Value Useful Life in Years Customer relationships $ 7.2 12 Non-competition agreements 1.9 5 Trade names 1.0 2 Favorable lease terms 0.1 2 Total intangible assets $ 10.2 The results of Pine State operations have been included in the Company’s consolidated financial statements since the date of acquisition. The Company incurred $2.2 million of acquisition-related costs, which are included in selling, general and administrative expenses for the year ended December 31, 2016 . The Company did not consider the Pine State acquisition to be a material business combination and therefore has not disclosed pro-forma results of operations for the acquired business. Simultaneously with the closing of the acquisition, the Company entered into two operating lease arrangements with certain former owners of Pine State. One operating lease bears a fifteen year term for a facility in Maine and the second operating lease bears a two year term for a facility in Vermont. Acquisition of Karrys Bros., Limited. On February 23, 2015 , the Company acquired substantially all of the assets of Karrys Bros., Limited (“Karrys Bros.”), a regional convenience wholesaler servicing customers in Ontario, Canada, and the surrounding provinces, for cash consideration of approximately $8.0 million , or $10.0 million (Canadian dollars). Transaction and integration costs in connection with the acquisition of Karrys Bros. were approximately $1.7 million for the year ended December 31, 2015 . The Karrys Bros. operations have been integrated into the Company’s existing distribution center in Toronto and have provided the Company with the opportunity to increase its market share in eastern Canada. The results of operations of Karrys Bros. have been included in the Company’s consolidated statements of operations and comprehensive income since the date of acquisition. The Company did not consider the Karrys Bros. acquisition to be a material business combination and therefore has not disclosed pro-forma results of operations for the acquired business. |
Other Consolidated Balance Shee
Other Consolidated Balance Sheet Accounts Detail | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Other Consolidated Balance Sheet Accounts Detail | Other Consolidated Balance Sheet Accounts Detail Allowance for Doubtful Accounts, Accounts Receivable The changes in the allowance for doubtful accounts due from customers consist of the following (in millions): Year Ended December 31, 2016 2015 2014 Balance, beginning of year $ 10.9 $ 10.8 $ 9.4 Net additions charged to operations (1) 2.0 1.3 2.2 Less: Write-offs and adjustments (5.8 ) (1.2 ) (0.8 ) Balance, end of year $ 7.1 $ 10.9 $ 10.8 ______________________________________________ (1) The net additions to the allowance for doubtful accounts were recognized in the consolidated statements of operations as a component of the Company’s selling, general and administrative expenses. Other Receivables, Net Other receivables, net consist of the following (in millions): December 31, 2016 December 31, 2015 Vendor receivables, net $ 90.6 $ 59.0 Insurance recoverables, current 2.1 1.5 Other miscellaneous receivables (1) 13.8 8.9 Total other receivables, net $ 106.5 $ 69.4 ______________________________________________ (1) Other miscellaneous receivables include amounts related primarily to notes receivables, miscellaneous tax receivables, receivables from the Company’s third party logistics customers, and other miscellaneous receivables. Deposits and Prepayments Deposits and prepayments consist of the following (in millions): December 31, 2016 December 31, 2015 Vendor prepayments $ 44.7 $ 34.1 Deposits (1) 8.5 4.7 Prepaid taxes 10.5 10.6 Racking allowances, current 5.7 6.4 Other prepayments (2) 13.4 9.2 Total deposits and prepayments $ 82.8 $ 65.0 ______________________________________________ (1) Deposits include amounts related primarily to cigarette stamps and workers’ compensation claims. (2) Other prepayments include prepayments relating to insurance policies, software licenses, rent and other miscellaneous prepayments. Other Non-current Assets, Net Other non-current assets, net of current portion, consist of the following (in millions): December 31, 2016 December 31, 2015 Insurance recoverables $ 12.9 $ 14.4 Debt issuance costs 1.6 0.9 Insurance deposits 3.4 2.9 Racking allowances, net 5.0 6.5 Other assets 3.7 3.4 Total other non-current assets, net $ 26.6 $ 28.1 Accrued Liabilities Accrued liabilities consist of the following (in millions): December 31, 2016 December 31, 2015 Accrued payroll, retirement and other benefits (1) $ 35.7 $ 29.9 Claims liabilities, current 13.4 11.9 Accrued customer incentives payable 40.1 20.3 Indirect taxes 6.2 7.3 Vendor advances 10.9 11.0 Other accrued expenses (2) 25.5 26.5 Total accrued liabilities $ 131.8 $ 106.9 ______________________________________________ (1) The Company’s accrued payroll, retirement and other benefits include accruals for vacation, bonuses, wages, 401(k) benefit matching and the current portion of pension and post-retirement benefit obligations. (2) The Company’s other accrued expenses include accruals for goods and services, lease liabilities, construction in process, legal expenses, and other miscellaneous accruals. |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories, Net Inventories consist of the following (in millions): December 31, 2016 December 31, 2015 Inventories at FIFO, net of reserves $ 727.0 $ 524.6 Less: LIFO reserve (130.4 ) (117.2 ) Total inventories at LIFO, net of reserves $ 596.6 $ 407.4 During periods of rising prices, the LIFO method of costing inventories generally results in higher current costs being charged against income while lower costs are retained in inventories. Conversely, during periods of decreasing prices, the LIFO method of costing inventories generally results in lower current costs being charged against income and higher stated inventories. If the FIFO method had been used for valuing inventories in the U.S., inventories would have been approximately $130.4 million and $117.2 million higher at December 31, 2016 and 2015 , respectively. The Company recorded LIFO expense of $13.2 million , $1.9 million and $16.3 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. The Company had a decrement in certain of its LIFO inventory layers of $4.8 million and $12.2 million in 2016 and 2015 , respectively, which had the effect of reducing its LIFO expense by $0.6 million in 2016 and $0.7 million in 2015 . |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment, Net Property and equipment consist of the following (in millions): December 31, 2016 December 31, 2015 Delivery, warehouse and office equipment (1) $ 280.4 $ 235.3 Leasehold improvements 68.6 54.4 Land and buildings (2) 32.0 28.9 Construction in progress 3.0 0.8 384.0 319.4 Less: Accumulated depreciation and amortization (189.3 ) (159.9 ) Total property and equipment, net $ 194.7 $ 159.5 ______________________________________________ (1) Includes equipment capital leases of $13.5 million for 2016 and $13.4 million for 2015 . (2) Includes $4.8 million for a capital lease related to a warehouse facility in both 2016 and 2015 . Depreciation and amortization expenses related to property and equipment were $28.9 million , $26.0 million and $21.5 million for 2016 , 2015 and 2014 , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, Net | Goodwill and Other Intangible Assets, Net Goodwill Goodwill represents the excess of the purchase consideration of an acquired business over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed in certain business combinations. The carrying amount of goodwill during 2016 and 2015 were as follows (in millions): Year Ended December 31, 2016 2015 Goodwill, beginning of year $ 22.9 $ 22.9 Pine State acquisition 13.1 — Goodwill, end of year $ 36.0 $ 22.9 The Company did not record any impairment charges related to goodwill during the years ended December 31, 2016 and 2015 . Other Intangible Assets, Net The carrying amount and accumulated amortization of other intangible assets as of December 31, 2016 and 2015 are as follows (in millions): December 31, 2016 December 31, 2015 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Customer relationships $ 28.3 $ (9.4 ) $ 18.9 $ 21.1 $ (7.3 ) $ 13.8 Non-competition agreements 5.0 (3.1 ) 1.9 3.2 (2.9 ) 0.3 Trade names 1.0 (0.3 ) 0.7 — — — Favorable lease terms 0.1 — 0.1 — — — Internally developed and other purchased software 33.0 (13.1 ) 19.9 25.8 (10.4 ) 15.4 Total other intangible assets $ 67.4 $ (25.9 ) $ 41.5 $ 50.1 $ (20.6 ) $ 29.5 The amortization of intangible assets recorded in the consolidated statements of operations was $5.3 million for 2016 , and $2.6 million for both 2015 and 2014 . Estimated future amortization expense for intangible assets is as follows (in millions): Year ending December 31, 2017 $ 6.5 2018 5.9 2019 5.6 2020 5.5 2021 5.1 2022 and thereafter 12.9 Total $ 41.5 |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt Total long-term debt consists of the following (in millions): December 31, December 31, 2016 2015 Amounts borrowed (Credit Facility) $ 336.0 $ 47.0 Obligations under capital leases (Note 9) 11.7 13.4 Total long-term debt $ 347.7 $ 60.4 The Company has a Credit Facility with a borrowing capacity of $600 million , as of December 31, 2016 . On November 4, 2016 , the Company entered into a ninth amendment to the Credit Facility (the "Ninth Amendment"), which increased its Credit Facility from $450 million to $600 million . The Credit Facility has an expansion feature which can be increased up to an additional $100 million , limited by a borrowing base primarily consisting of eligible accounts receivable and inventories. All obligations under the Credit Facility are secured by first priority liens on substantially all of the Company’s present and future assets. The terms of the Credit Facility permit prepayment without penalty at any time (subject to customary breakage costs with respect to London Interbank Offer Rate ("LIBOR") or Canadian Dollar Offer Rate ("CDOR") based loans prepaid prior to the end of an interest period). This will be subject to the same borrowing base limitations as the Eighth amendment. On May 16, 2016 , the Company entered into an eighth amendment to the Credit Facility ("Eighth amendment"), which increased the size of the Credit Facility from $300 million to $450 million . In addition, the Eighth amendment allows for unlimited stock repurchases and dividends, as long as the Company meets certain credit availability percentages and fixed charge coverage ratios. The Credit Facility matures in May 2020 . The Company incurred fees of approximately $1.3 million in connection with the amendments. Amounts borrowed, outstanding letters of credit and amounts available to borrow, net of certain reserves required under the Credit Facility, were as follows (in millions): December 31, December 31, 2016 2015 Amounts borrowed $ 336.0 $ 47.0 Outstanding letters of credit 17.4 18.5 Amounts available to borrow (1) 224.8 123.9 ______________________________________________ (1) Excluding $100 million expansion feature. Average borrowings during the years ended December 31, 2016 and 2015 were $184.4 million and $39.6 million , respectively, with amounts borrowed at any one time during the years then ended ranging from zero to $428.0 million and zero to $120.9 million , respectively. The weighted-average interest rate on the Credit Facility for the years ended December 31, 2016 and 2015 were 1.7% , and 1.6% , respectively. The weighted-average interest rate is calculated based on the daily cost of borrowing, reflecting a blend of prime and LIBOR rates. The Company paid fees for unused credit facility and letter of credit participation, which are included in interest expense, of $0.7 million , $0.6 million , and $0.7 million for December 31, 2016 , 2015 and 2014 , respectively. The Company recorded charges related to amortization of debt issuance costs, which are included in interest expense, of $0.5 million , $0.3 million , and $0.3 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Unamortized debt issuance costs were $2.3 million and $1.2 million as of December 31, 2016 and 2015 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Commitments The Company enters into purchase commitments in the ordinary course of business. The Company had purchase obligations of $47.8 million and $43.1 million as of December 31, 2016 and 2015 , respectively, related primarily to purchases of compressed natural gas for its trucking fleet, delivery and warehouse equipment, computer software and services and leasehold improvements. Purchase orders for the purchase of inventory and other services are not included in the purchase obligations as of December 31, 2016 and 2015 , respectively, because purchase orders represent authorizations to purchase rather than binding agreements. For purposes of this commitment, contractual obligations for purchase of goods or services are defined as agreements that are enforceable and legally binding and that specify all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. The Company’s purchase orders are based on its current inventory needs and are fulfilled by its suppliers within short time periods. The Company also enters into contracts for outsourced services; however, the obligations under these contracts are not significant and the contracts generally contain clauses allowing for cancellation without significant penalty. Operating Leases The Company leases most of its sales and warehouse facilities and a significant number of trucks, vans and certain equipment under operating lease agreements expiring at various dates through 2032 , excluding renewal options. Rent expense is recorded on a straight-line basis over the term of the lease, including available renewal option terms, if it is reasonably assured that the renewal options will be exercised. The operating leases generally require the Company to pay taxes, maintenance and insurance. In most instances, the Company expects the operating leases that expire will be renewed or replaced in the normal course of business. Future minimum rental payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year and excluding contracted vehicle maintenance costs) were as follows as of December 31, 2016 (in millions): Year ending December 31, 2017 $ 54.3 2018 51.9 2019 47.4 2020 41.9 2021 33.2 2022 and thereafter 121.3 Total $ 350.0 For 2016 , 2015 and 2014 , rental expenses for operating and month-to-month leases, including contracted vehicle maintenance costs, were $66.8 million , $57.9 million and $50.4 million , respectively. Capital Leases As of December 31, 2016 and 2015 , the Company had approximately $13.6 million and $15.6 million , respectively, in capital lease obligations, related to a warehouse facility, refrigeration and other office and warehouse equipment with lease agreements expiring at various dates through 2027 , excluding renewal options. Future minimum lease payments under non-cancelable capital leases were as follows as of December 31, 2016 (in millions): Year ending December 31, 2017 $ 2.6 2018 2.4 2019 2.2 2020 1.9 2021 1.3 2022 and thereafter 6.4 Total 16.8 Less: Interest (3.2 ) Present value of future minimum lease payments 13.6 Less: current portion (1.9 ) Non-current portion $ 11.7 Contingencies Off-Balance Sheet Arrangements Letters of Credit. As of December 31, 2016 , the Company’s standby letters of credit issued under the Company’s Credit Facility were $ 17.4 million related primarily to casualty insurance. The majority of the standby letters of credit mature in one year. However, in the ordinary course of business, the Company will continue to renew or modify the terms of the letters of credit to support business requirements. The letters of credit are contingent liabilities, supported by the Company’s line of credit, and are not reflected on the consolidated balance sheets. Litigation The Company is subject to certain legal proceedings, claims, investigations and administrative proceedings in the ordinary course of its business. The Company records a provision for a liability when it is both probable that the liability has been incurred and the amount of the liability can be reasonably estimated. These provisions, if any, are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. In the opinion of management, the outcome of pending litigation is not expected to have a material effect on the Company’s results of operations or financial condition. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s income tax provision consists of the following (in millions): Year Ended December 31, 2016 2015 2014 Current: Federal $ 21.4 $ 19.4 $ 22.0 State 3.1 3.2 3.1 Total current tax provision 24.5 22.6 25.1 Deferred: Federal 6.7 7.8 (0.6 ) State 0.8 1.1 (0.5 ) Foreign (0.7 ) (0.1 ) (0.3 ) Total deferred tax provision (benefit) 6.8 8.8 (1.4 ) Total income tax provision $ 31.3 $ 31.4 $ 23.7 A reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate and income tax provision is as follows (in millions): Year Ended December 31, 2016 2015 2014 Federal income tax provision at the statutory rate $ 29.9 35.0 % $ 29.0 35.0 % $ 23.2 35.0 % Increase (decrease) resulting from: State income taxes, net of federal benefit 2.9 3.4 2.9 3.5 2.3 3.5 Decrease in unrecognized tax benefits (inclusive of related interest and penalty) (0.3 ) (0.4 ) — — (0.9 ) (1.4 ) Effect of foreign operations (0.7 ) (0.8 ) (0.1 ) (0.1 ) (0.3 ) (0.5 ) Change in valuation allowance — — (0.1 ) (0.1 ) — — Tax credits and other, net (0.5 ) (0.6 ) (0.3 ) (0.4 ) (0.6 ) (0.9 ) Income tax provision $ 31.3 36.6 % $ 31.4 37.9 % $ 23.7 35.7 % The Company’s effective tax rate was 36.6% for 2016 compared to 37.9% for 2015 . The decrease in effective tax rate for 2016 was due primarily to the effects of prior years' estimates for foreign operations, as well as benefits in the current year related to the expiration of statute of limitations for uncertain tax positions and related interest recovery. The provision for income taxes included a net benefit of $1.5 million and $0.3 million for 2016 and 2015 , respectively, related primarily to the expiration of the statute of limitations for uncertain tax positions and adjustments of prior years’ estimates. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The tax effects of significant temporary differences which comprise deferred tax assets and liabilities are as follows (in millions): December 31, 2016 December 31, 2015 Deferred tax assets: Employee benefits, including post-retirement benefits $ 15.4 $ 15.2 Trade and other receivables 2.9 4.1 Goodwill and intangibles 0.2 2.0 Self-insurance reserves 1.7 1.5 Other 6.1 4.0 Subtotal 26.3 26.8 Less: valuation allowance — — Net deferred tax assets $ 26.3 $ 26.8 Deferred tax liabilities: Inventories $ 7.0 $ 9.0 Property and equipment 36.2 27.2 Goodwill and intangibles 5.6 6.0 Other 1.8 1.6 Total deferred tax liabilities $ 50.6 $ 43.8 Total net deferred tax liabilities $ (24.3 ) $ (17.0 ) Net current deferred tax assets 4.6 1.6 Net non-current deferred tax liabilities $ (28.9 ) $ (18.6 ) At each balance sheet date, management assesses whether it is more likely than not that these deferred tax assets would not be realized. The Company had no valuation allowance at December 31, 2016 and 2015 . The total gross amount of unrecognized tax benefits related to federal, state and foreign taxes was approximately $0.2 million and $0.4 million at December 31, 2016 and 2015 , respectively, all of which would impact the Company’s effective tax rate, if recognized. The expiration of the statute of limitation in future years could impact the total gross amount of unrecognized tax benefits by $0.2 million through the year ended December 31, 2017 as a result of the statute limitations for certain tax positions in future years and expected settlement of certain tax audit issues. A reconciliation of the beginning and ending amounts of unrecognized tax benefits for 2016 , 2015 and 2014 is as follows (in millions): Year Ended December 31, 2016 2015 2014 Balance at beginning of year $ 0.4 $ 0.4 $ 0.6 Lapse of statute of limitations (0.2 ) — (0.2 ) Balance at end of year $ 0.2 $ 0.4 $ 0.4 ____________________________________________ The Company files U.S. federal, state and foreign income tax returns in jurisdictions with varying statutes of limitations. The 2013 to 2016 tax years remain subject to examination by federal and state tax authorities. The 2012 tax year is still open for certain state tax authorities. The 2009 to 2016 tax years remain subject to examination by the tax authorities in Canada. For the year ended December 31, 2016 , the Company recognized a net benefit in its provision for income taxes of $ 0.1 million related primarily to the interest associated with certain unrecognized tax positions. For the year ended December 31, 2015 the Company did not recognize any net benefit and in 2014 recognized a net benefit of $0.2 million As of December 31, 2016 and December 31, 2015 , the Company had a liability of $0.1 million and $ 0.3 million , respectively, for estimated interest and penalties related to unrecognized tax benefits. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Pension Plans The Company sponsored a qualified defined-benefit pension plan and a post-retirement benefit plan (collectively, “the Pension Plans”). The Pension Plans were frozen on September 30, 1986 and since then there have been no new entrants to the Pension Plans. On September 14, 2016, the Board of Directors approved a motion to terminate the Company’s qualified defined-benefit pension plan. The Company expects its pension liabilities will be settled through either lump sum payments or purchased annuities by December 31, 2017. At settlement, the Company expects to recognize a non-cash charge related to unrecognized actuarial losses in AOCI estimated between $17.0 million and $19.0 million . The Company expects to make additional cash contributions of approximately $4.0 million to $6.0 million to settle its pension obligations in 2017. Settling the plan will eliminate cash contributions, lower future expenses and eliminate the risk of rising Pension Benefit Guaranty Corporation (“PBGC”) premiums. The Company’s defined-benefit pension plan is subject to the Employee Retirement Income Security Act of 1974 (“ERISA”). Under ERISA, the PBGC has the authority to terminate an underfunded pension plan under limited circumstances. In the event the Company’s pension plan is terminated for any reason while it is underfunded, the Company would incur a liability to the PBGC that may be equal to the entire amount of the underfunding. The Company’s post-retirement benefit plan is not subject to ERISA. As a result, the post-retirement benefit plan is not required to be pre-funded, and, accordingly, has no plan assets. Pension costs and other post-retirement benefit costs charged to operations are estimated on the basis of annual valuations with the assistance of an independent actuary. Adjustments arising from plan amendments, changes in assumptions and experience gains and losses, are amortized over the average future life expectancy of inactive participants for the defined-benefit plan, and the average remaining future service of active employees expected to receive benefits for the post-retirement benefit plan. The following tables provide a reconciliation of the changes in the Pension Plans’ benefit obligation and fair value of assets, the funded status of the plans and the amounts recognized in the consolidated balance sheets and AOCI as of December 31, 2016 and 2015 (in millions): Pension Benefits Other Post-retirement Benefits December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Change in Benefit Obligation: Obligation at beginning of year $ 37.0 $ 43.6 $ 3.0 $ 3.0 Interest cost 1.2 1.7 0.2 0.1 Actuarial loss (gain) 1.7 (2.0 ) (0.5 ) 0.1 Benefit payments (2.4 ) (2.8 ) (0.1 ) (0.2 ) Group annuity contract discontinuance — (1.3 ) — — Settlement of accumulated benefits (2.7 ) (2.2 ) — — Benefit obligation at end of year $ 34.8 $ 37.0 $ 2.6 $ 3.0 Change in Plan Assets: Fair value of plan assets at beginning of year $ 32.3 $ 40.4 $ — $ — Actual return on plan assets 1.4 (1.8 ) — — Employer contributions 1.9 — 0.1 0.2 Benefit payments (2.4 ) (2.8 ) (0.1 ) (0.2 ) Group annuity contract discontinuance — (1.3 ) — — Settlement of accumulated benefits (2.7 ) (2.2 ) — — Fair value of plan assets at end of year $ 30.5 $ 32.3 $ — $ — Funded status at end of year $ (4.3 ) $ (4.7 ) $ (2.6 ) $ (3.0 ) Amounts recognized in the balance sheet consist of: Current liabilities $ (4.3 ) $ — $ (0.2 ) $ (0.2 ) Non-current liabilities — (4.7 ) (2.4 ) (2.8 ) Total liabilities $ (4.3 ) $ (4.7 ) $ (2.6 ) $ (3.0 ) Amounts recognized in AOCI consist of: Net actuarial loss (gain) $ 17.7 $ 17.5 $ (0.7 ) $ (0.2 ) Total $ 17.7 $ 17.5 $ (0.7 ) $ (0.2 ) Additional Information: Accumulated benefit obligation $ 34.8 $ 37.0 During 2016 , the underfunded status of the defined-benefit pension plan decreased $0.4 million to $4.3 million , due primarily to a contribution of $1.9 million made to the plan during 2016 , return on plan assets of $1.4 million , offset by interest costs of $1.2 million and an actuarial loss of $1.7 million . The actuarial loss of $1.7 million for the year ended December 31, 2016 includes an increase in the plan's Projected Benefit Obligation of $2.0 million pursuant to the Company's decision to terminate the plan, offset by $0.3 million related to favorable demographic experience since the prior year end. The Company offers certain plan participants the option to receive a lump sum payment in lieu of future annuity pension benefits. During 2016 , the Company settled accumulated benefits of $2.7 million (pre-tax) for participants who received lump sum payments. The Company incurred settlement charges of $1.3 million during 2016 due to lump sum payments. The following table provides components of net periodic benefit cost and other changes in plan assets and benefit obligations recognized in other comprehensive income (in millions): Pension Benefits Other Post-retirement Benefits December 31, December 31, 2016 2015 2014 2016 2015 2014 Net Periodic Benefit Cost: Interest cost $ 1.2 $ 1.7 $ 1.8 $ 0.2 $ 0.1 $ 0.1 Expected return on plan assets (1.8 ) (2.1 ) (2.5 ) — — — Amortization of net actuarial loss (gain) 0.6 0.6 0.4 — — (0.1 ) Settlement charge 1.3 1.6 — — — — Net periodic benefit cost (income) $ 1.3 $ 1.8 $ (0.3 ) $ 0.2 $ 0.1 $ — Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: Net actuarial loss (gain) $ 2.1 $ 1.9 $ 5.2 $ (0.5 ) $ 0.2 $ (0.4 ) Settlement charge (1.3 ) (1.6 ) — — — — Amortization of actuarial (loss) gain (0.6 ) (0.6 ) (0.4 ) — — 0.1 Total net loss (gain) recognized in other comprehensive income $ 0.2 $ (0.3 ) $ 4.8 $ (0.5 ) $ 0.2 $ (0.3 ) For both the pension and other post-retirement benefit plans, prior service costs are amortized on a straight-line basis over the average remaining future service of active employees expected to receive benefits under the plans. For the pension benefit plan, gains and losses in excess of 10% of the greater of the benefit obligation and market-related value of assets are amortized over the average future life expectancy of inactive participants. For the post-retirement benefit plan, gains and losses in excess of 10% of the greater of the benefit obligation and market-related value of assets are amortized over the average remaining future service of active employees expected to receive benefits under the plan. The Company uses its fiscal year-end date as the measurement date for the plans. The Company estimated that average future life expectancy is 20.4 years for the pension benefits plan and remaining service life of active participants is 4.6 years for the post-retirement benefits plan. Assumptions Used: The following table shows the weighted-average assumptions used in the measurement of: Pension Benefits Other Post-retirement Benefits December 31, December 31, 2016 2015 2014 2016 2015 2014 Benefit Obligations: Discount rate 3.30 % 4.32 % 4.00 % 3.98 % 4.32 % 3.99 % Expected return on assets 3.25 % 6.00 % 5.50 % N/A N/A N/A Net Periodic Benefit Costs: Discount rate 4.13 % 4.05 % 4.60 % 4.29 % 3.99 % 4.6 % Expected return on assets 3.57 % 5.95 % 6.55 % 3.47 % N/A N/A The weighted-average discount rates used to determine the Pension Plans’ obligations and expenses are based on a yield curve methodology, which matches the expected benefits at each duration to the available high quality yields at that duration and calculating an equivalent yield. The net periodic benefit cost was re-measured at September 30, 2016 and December 31, 2016 to reflect settlement accounting due to lump sum payments. During 2016 , a discount rate of 4.32% was used from January 1 to September 30, a discount rate of 3.57% was used from October 1 to December 31, and a discount rate of 3.98% was used at December 31. The decrease in discount rate in 2016 compared to 2015 was due to a decrease in bond yields during 2016 and the plan valuation shifting from an ongoing to termination liability basis. The decrease in the expected long-term return on assets assumption in 2016 compared to 2015 was due to shifting to a more conservative asset allocation in 2016. Assumed health care cost trend rates have an effect on the amounts reported for the post-retirement health care plans. The health care cost trend rates assumed for the end of year benefit obligation for the post-retirement benefit plans are as follows: December 31, 2016 December 31, 2015 Assumed current trend rate for next year for participants under 65 6.62% 6.80% Assumed current trend rate for next year for participants 65 and over 7.73% 7.85% Ultimate year trend rate 4.50% 5.00% Year that ultimate trend rate is reached for participants under 65 2025 2024 Year that ultimate trend rate is reached for participants 65 and over 2025 2023 A one percent point change in assumed health care cost trend rates would have the following effects (in millions): 1% Increase 1% Decrease Effect on total of service and interest cost components of net periodic post-retirement health care benefit cost $ — $ — Effect on the health care component of the accumulated post-retirement benefit obligation $ 0.2 $ 0.3 Plan Assets: During 2016 , the Company shifted the target asset allocation to 100% fixed income assets as a result of the Company's decision to terminate the qualified defined-benefit pension plan. The Company’s current target allocations are: 0% cash, 0% equity and 100% fixed income. The Company’s investment target also sets forth the requirement for diversification within asset class, types and classes for investments prohibited and permitted, specific indices to be used for benchmark in investment decisions and criteria for individual securities. The Group Trust is valued at the net asset value provided by the administrator of the fund. The net asset fair value is based on the value of the underlying assets owned by the fund, minus its liabilities, divided by the number of units outstanding. Certain investments that are valued using the net asset value per share have not been classified in the fair value hierarchy and are included in the below tables to permit reconciliation of the fair value hierarchy to the aggregate plan assets. The fair value measurements of the Pension Plans’ assets by asset category at December 31, 2016 are as follows (in millions): Asset Category Total Investments Measured at Net Asset Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 1.6 $ — $ 1.6 $ — $ — Group trust 28.9 28.9 — — — Total $ 30.5 $ 28.9 $ 1.6 $ — $ — The fair value measurements of the Pension Plans’ assets by asset category at December 31, 2015 are as follows (in millions): Asset Category Total Investments Measured at Net Asset Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 1.0 $ — $ 1.0 $ — $ — Group trust 31.3 31.3 — — — Total $ 32.3 $ 31.3 $ 1.0 $ — $ — The Company adopted ASU 2015-07 in 2016 and applied its provisions on a retrospective basis. During 2015 , the Company discontinued its group annuity contract which consisted primarily of investment grade fixed income securities. The Company settled the contract liability for $1.3 million and the excess assets were transferred to the Group Trust, comprised of diversified portfolio of investments across various asset classes, including U.S. and foreign equities and U.S. high yield and investment grade corporate bonds. Estimated Future Contributions and Benefit Payments In conjunction with the termination of the Company’s qualified defined-benefit pension plan, the Company expects to make additional cash contributions of approximately $4.0 million to $6.0 million to settle its pension obligations in 2017 and to contribute a minimum of $0.2 million to its other post-retirements benefits plan. Estimated future benefit payments reflecting future service are as follows (in millions): Year ending December 31, Pension Benefits Other Post-retirement Benefits 2017 $ 35.8 $ 0.2 2018 — 0.2 2019 — 0.2 2020 — 0.2 2021 — 0.2 2021 through 2025 — 0.9 Expected amortization from AOCI into net periodic benefit cost for the year ending December 31, 2017 (in millions): Pension Benefits Other Post-retirement Benefits Expected amortization of net actuarial loss $ 0.7 $ (0.1 ) At settlement, the Company expects to recognize a non-cash charge related to unrecognized actuarial losses in accumulated other comprehensive income estimated between $17.0 million and $19.0 million . Multi-employer Defined Benefit Plan The Company contributed $0.5 million in the year ended December 31, 2016 , $0.4 million in the year ended December 31, 2015 , and $0.4 million in the year ended December 31, 2014 , respectively, to multi-employer defined benefit plans under the terms of a collective-bargaining agreement that covers its union represented employees. Savings Plans The Company maintains defined-contribution plans in the U.S., subject to Section 401(k) of the Internal Revenue Code, and in Canada, subject to the Income Tax Act. For the year ended December 31, 2016 , eligible U.S. employees could elect to contribute, on a tax-deferred basis, from 1% to 75% of their compensation to a maximum of $ 18,000 . Eligible U.S. employees over 50 years of age could also contribute an additional $6,000 on a tax-deferred basis. In Canada, employees can elect to contribute up to a maximum of $25,370 Canadian dollars. As of December 31, 2016 , the Company matches 50% of U.S. and Canada employee contributions up to 6% of base salary for a total maximum company contribution of 3% . Effective January 1, 2017, the maximum contribution available to employees in Canada increased to $26,010 . For the years ended December 31, 2016 , 2015 and 2014 , the Company made matching payments of $3.9 million , $3.1 million and $3.0 million , respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic and diluted net earnings per share (dollars and shares in millions, except per share amounts): Years Ended December 31, 2016 2015 2014 Net Income Weighted-Average Shares Outstanding Net Income Per Common Share Net Income Weighted-Average Shares Outstanding Net Income Per Common Share Net Income Weighted-Average Shares Outstanding Net Income Per Common Share Basic EPS $ 54.2 46.3 $ 1.17 $ 51.5 46.2 $ 1.12 $ 42.7 46.2 $ 0.93 Effect of dilutive common share equivalents: Restricted stock units — 0.1 — — 0.2 (0.01 ) — 0.2 (0.01 ) Stock options — — — — — — — 0.2 — Performance shares — 0.1 — — 0.2 — — — — Diluted EPS $ 54.2 46.5 $ 1.17 $ 51.5 46.6 $ 1.11 $ 42.7 46.6 $ 0.92 ______________________________________________ Note: Basic and diluted earnings per share are calculated based on unrounded actual amounts. Stock options and RSU's to purchase common stock are not included in the computation of diluted earnings per share if their effect would be anti-dilutive. There were no anti-dilutive stock options and RSU's excluded in the computation of diluted earnings per share for 2016 , 2015 and 2014 . |
Stock Incentive Plans
Stock Incentive Plans | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Incentive Plans | Stock Incentive Plans 2010 Long-Term Incentive Plan On May 25, 2010, the Company’s stockholders approved the 2010 Long-Term Incentive Plan (“2010 LTIP”) which provided for the granting of awards of the Company’s common stock to officers, employees and non-employee directors. On May 20, 2014, the Company’s stockholders approved an amendment to the 2010 LTIP increasing the shares reserved for issuance by 1,800,000 shares of the Company’s common stock and reapproved the performance measures that may apply to awards granted thereunder. As of December 31, 2016 , the total number of shares available for issuance under the 2010 LTIP was 2,684,821 . The 2010 LTIP became effective on April 1, 2010 and awards may be made under the plan through March 31, 2020. The available awards under the 2010 LTIP include: stock options, stock appreciation rights, RSUs, other stock-based awards and performance shares. The 2010 LTIP limits awards to 200,000 shares to any one participant in any one year. The majority of awards issued under the 2010 LTIP through December 31, 2016 , have been RSUs and performance shares, which generally vest over three years. The Company issues new shares upon stock option exercises and vesting of RSUs and performance shares. Prior Long-Term Incentive Plans The 2004 Long-Term Incentive Plan (“2004 LTIP”) provided for issuance of shares of non-qualified stock options and RSUs to officers and key employees. The 2005 Long-Term Incentive Plan (“2005 LTIP”) provided for the granting of RSUs to officers and key employees. The 2007 Long-Term Incentive Plan (“2007 LTIP”) provided for the granting of stock options, RSUs and performance share awards of the Company’s common stock to officers, employees and non-employee directors. The majority of awards granted by the Company vested over a three -year period: one-third of the awards cliff-vested on the first anniversary of the vesting commencement date and the remaining awards vested in equal monthly installments for the 2004 LTIP and equal quarterly installments for the 2005 LTIP and the 2007 LTIP, over the two -year period following the first anniversary of the vesting commencement date. For option grants, the exercise price equaled the fair value of the Company’s common stock on the date of grant. Stock options expire seven years after the date of grant. RSUs do not have an expiration date. No further grants will be made under the 2004 LTIP, the 2005 LTIP, or the 2007 LTIP. The following table summarizes the number of securities to be issued and remaining available for future issuance under all of the Company’s stock incentive plans as of December 31, 2016 : Number of securities to be issued upon exercise of outstanding options and vesting of RSUs Weighted-average exercise price of outstanding options and vesting of RSUs Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column 1) 2007 Long-Term Incentive Plan (1) 1,624 $ 0.01 — 2010 Long-Term Incentive Plan (2) 399,568 $ 0.01 2,684,821 ______________________________________________ (1) Includes RSUs. (2) Includes RSUs and performance shares. The following table summarizes the activity for all stock options, RSUs and performance shares under all of the Long-Term Incentive Plans (“LTIPs”) for the year ended December 31, 2016 : December 31, 2015 Activity during 2016 December 31, 2016 Outstanding Granted Vested / Exercised Canceled Outstanding Exercisable Plans Securities Number Price Number Price Number Price Number Price Number Price Number Price 2005 LTIP RSUs 12,208 0.01 — — (12,208 ) 0.01 — — — — — — 2007 LTIP RSUs 1,624 0.01 — — — — — — 1,624 0.01 1,624 0.01 Options 21,206 4.80 — — (12,370 ) 4.80 (8,836 ) 4.80 — — — — 2010 LTIP RSUs 328,578 0.01 124,077 (1) 0.01 (219,237 ) 0.01 (2,560 ) 0.01 230,858 0.01 — — Options 30,000 8.20 — — (30,000 ) 8.20 — — — — — — Performance shares 336,268 0.01 156,576 (2) 0.01 (128,522 ) 0.01 (195,612 ) 0.01 168,710 0.01 — — Total 729,884 280,653 (402,337 ) (207,008 ) 401,192 1,624 ______________________________________________ Note: Price is weighted-average price per share. (1) Consists of non-performance RSUs. (2) In January 2016 , the Company awarded a maximum of 156,576 performance shares that would have been received if the highest level of performance was achieved. The shares were ultimately canceled as the Company did not achieve the related performance targets for fiscal 2016. The aggregate intrinsic value of stock options exercised in 2016 , 2015 and 2014 was $1.3 million , $1.8 million and $5.2 million , respectively. The aggregate intrinsic value of RSUs exercised in 2016 , 2015 and 2014 was $9.3 million , $5.8 million and $5.3 million , respectively. The aggregate intrinsic value of performance shares exercised in 2016 , 2015 and 2014 was $5.1 million , $2.7 million and $1.1 million , respectively. The following table summarizes RSUs and performance shares that have vested and are expected to vest as of December 31, 2016 : December 31, 2016 Outstanding Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value (1) (dollars in thousands) Plans Securities Vested Expected to vest (2) Vested Expected to vest (2) Vested Expected to vest (2) 2007 LTIP RSUs 1,624 — — — 70 — 2010 LTIP RSUs — 222,963 — — — 9,601 Performance shares — 167,023 — — — 7,192 Total 1,624 389,986 $ 70 $ 16,793 ______________________________________________ ( 1) Aggregate intrinsic value is calculated based upon the difference between the exercise price of RSUs and the Company’s closing common stock price on December 31, 2016 of $43.07 , multiplied by the number of instruments that are vested or expected to vest. RSUs having exercise prices greater than the closing stock price noted above are excluded from this calculation. (2) RSUs and performance shares that are expected to vest are net of estimated future forfeitures. The aggregate fair value of options vested in 2016 and 2015 were zero and $0.3 million in 2014 . The aggregate fair value of RSUs vested in 2016 , 2015 and 2014 was $9.3 million , $5.8 million and $5.4 million , respectively. The aggregate fair value of performance shares vested in 2016 , 2015 and 2014 was $5.1 million , $2.7 million and $1.1 million , respectively. Assumptions Used for Fair Value The fair values for RSUs and performance shares, which are based on the fair market value of the Company’s stock at date of grant, are included below for shares granted during 2016 , 2015 and 2014 . For stock options, the Company uses the Black-Scholes option-pricing model to determine the grant date fair value. Option-pricing models require the input of assumptions that are estimated at the date of grant. The Company did not grant stock options in 2016 , 2015 , or 2014 . Year Ended December 31, 2016 2015 2014 Weighted-average fair value per share of grants: RSUs $ 38.21 $ 32.47 $ 18.57 Performance shares (1) N/A $ 32.60 $ 18.40 ______________________________________________ ( 1) Performance shares awarded in 2016 were ultimately canceled as the Company did not achieve the related performance targets for 2016 . Stock-based Compensation Expense The Company recognized stock-based compensation expense of $6.1 million , $8.7 million and $6.1 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Stock-based compensation expense is included in selling, general and administrative expenses on the consolidated statements of operations. Stock-based compensation expense recognized for 2016 was calculated based on awards ultimately expected to vest and has been reduced for estimated forfeitures. The Company’s forfeiture experience since inception of its plans has been approximately 4% of the total grants. The historical rate of forfeiture is a component of the basis for predicting the future rate of forfeitures, which are also dependent on the remaining service period related to grants and on the limited number of approximately 94 plan participants that have been awarded grants since the inception of the Company’s plans. As of December 31, 2016 , total unrecognized compensation cost related to non-vested share-based compensation arrangements was $3.7 million , which is expected to be recognized over a weighted-average period of 1.2 years. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Amendment to the Certificate of Incorporation On May 19, 2015, the Company’s stockholders approved an amendment to the Certificate of Incorporation increasing the total number of authorized shares of common stock from 50,000,000 to 100,000,000 . Dividends On May 25, 2016 , the Board of Directors approved a two-for-one stock split of the Company’s outstanding common stock, effected through a stock dividend. The additional shares were distributed on June 27, 2016 to stockholders of record at the close of business on June 9, 2016 . All references made to share or per share amounts in the accompanying consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect this two-for-one stock split for all periods presented. On October 19, 2011 , the Company announced the commencement of a quarterly dividend program. The Company's intentions are to continue increasing its dividends per share over time; however, the payment of any future dividends will be determined by the Company’s Board of Directors in light of then existing conditions, including the Company’s earnings, financial condition and capital requirements, strategic alternatives, restrictions in financing agreements, business conditions and other factors. The Credit Facility places certain limits on the Company’s ability to pay cash dividends on its common stock. ( See Note 8 - Long-term Debt . ) The Board of Directors approved the following cash dividends in 2016 (in millions, except per share data): Declaration Date Dividends Per Share Record Date Cash Payment Amount (1) Payment Date February 24, 2016 $0.08 March 11, 2016 $3.8 March 28, 2016 May 9, 2016 $0.08 May 25, 2016 $3.7 June 15, 2016 August 8, 2016 $0.08 August 24, 2016 $3.8 September 15, 2016 November 4, 2016 $0.09 November 23, 2016 $4.2 December 15, 2016 ______________________________________________ (1) Includes cash payments on declared dividends and payments made on RSUs vested subsequent to the payment date. The Company paid total dividends of $15.5 million , $12.8 million and $10.7 million in 2016 , 2015 and 2014 , respectively. Dividends declared and paid per common share were $0.33 , $0.29 and $0.23 in 2016 , 2015 and 2014 , respectively. On February 28, 2017 the Board of Directors declared a quarterly cash dividend of $0.09 per common share, which is payable on March 28, 2017 to shareholders of record as of close of business on March 13, 2017 . Repurchase of Common Stock In May 2013 , the Company’s Board of Directors authorized a $30 million increase to its stock repurchase plan. At the time of increase, the Company had $2.3 million remaining under its stock repurchase plan. The share repurchase program may be discontinued or amended at any time. The program has no expiration date and expires when the amount authorized has been expended or the Board of Directors withdraws its authorization. As of December 31, 2016 and 2015 , the Company had $2.6 million and $11.5 million , respectively, available for future share repurchases under the program. The following table summarizes the Company’s stock repurchase activities for the years ended December 31, 2016 and 2015 : Year Ended December 31, 2016 2015 Number of shares repurchased 237,869 302,366 Average price per share $ 37.76 $ 30.35 Total repurchase costs (in millions) $ 8.9 $ 9.2 |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) The components of other comprehensive income (“OCI”) and the related tax effects were as follows (in millions): Year Ended December 31, 2016 2015 2014 Net Net Net Before Tax of Before Tax of Before Tax of Tax Effect Tax Tax Effect Tax Tax Effect Tax Defined benefit plan adjustments: Net actuarial loss during the year $ (1.6 ) $ 0.6 $ (1.0 ) $ (2.1 ) $ 0.9 $ (1.2 ) $ (4.8 ) $ 1.7 $ (3.1 ) Settlement charge 1.3 (0.5 ) 0.8 1.6 (0.6 ) 1.0 — — — Amortization of net actuarial loss included in net income 0.6 (0.2 ) 0.4 0.6 (0.2 ) 0.4 0.3 (0.1 ) 0.2 Net gain (loss) during the year 0.3 (0.1 ) 0.2 0.1 0.1 0.2 (4.5 ) 1.6 (2.9 ) Foreign currency translation gain (loss) 1.9 — 1.9 (4.9 ) — (4.9 ) (3.0 ) — (3.0 ) Other comprehensive income (loss) $ 2.2 $ (0.1 ) $ 2.1 $ (4.8 ) $ 0.1 $ (4.7 ) $ (7.5 ) $ 1.6 $ (5.9 ) The following table provides a summary of the changes in AOCI for the years presented (in millions): Foreign Defined Currency Benefit Plan Translation Total Balance as of December 31, 2013 $ (7.9 ) $ 2.2 $ (5.7 ) Other comprehensive loss (2.9 ) (3.0 ) (5.9 ) Balance as of December 31, 2014 (10.8 ) (0.8 ) (11.6 ) Other comprehensive income (loss) 0.2 (4.9 ) (4.7 ) Balance as of December 31, 2015 (10.6 ) (5.7 ) (16.3 ) Other comprehensive income 0.2 1.9 2.1 Balance as of December 31, 2016 $ (10.4 ) $ (3.8 ) $ (14.2 ) |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information The Company identifies its operating segments based primarily on the way the Chief Operating Decision Maker (“CODM”) evaluates performance and makes decisions. From the perspective of the CODM, the Company is engaged primarily in the business of distributing packaged consumer products to convenience retail stores in the U.S. and Canada (collectively “North America”), which consists of customers that have similar characteristics. Therefore, the Company has determined that it has two operating segments - U.S. and Canada that aggregates to one reportable segment. Additionally, the Company presents its segment reporting information based on business operations for each of the two geographic areas in which it operates and also by major product category. Information about the Company’s business operations based on geographic areas is as follows (in millions): Year Ended December 31, 2016 2015 2014 Net sales: United States $ 13,133.0 $ 9,829.7 $ 8,989.0 Canada 1,356.4 1,203.5 1,250.9 Corporate (1) 40.0 36.2 40.2 Total $ 14,529.4 $ 11,069.4 $ 10,280.1 Income (loss) before income taxes: United States $ 90.7 $ 79.4 $ 70.8 Canada 6.4 1.7 3.2 Corporate (2) (11.6 ) 1.8 (7.6 ) Total $ 85.5 $ 82.9 $ 66.4 Interest expense: United States $ 40.8 $ 35.0 $ 32.0 Canada 1.1 0.7 0.7 Corporate (3) (36.6 ) (33.2 ) (30.3 ) Total $ 5.3 $ 2.5 $ 2.4 Depreciation and amortization: United States $ 31.0 $ 29.3 $ 24.9 Canada 2.5 2.4 2.8 Corporate (4) 9.4 6.2 4.3 Total $ 42.9 $ 37.9 $ 32.0 Capital expenditures: United States $ 52.4 $ 28.6 $ 53.3 Canada 1.9 1.7 0.6 Total $ 54.3 $ 30.3 $ 53.9 _____________________________________________ (1) Consists primarily of external sales made by the Company’s consolidating warehouses, management service fee revenue, allowance for sales returns and certain other sales adjustments. (2) Consists primarily of expenses and other income, such as corporate incentives and salaries, LIFO expense, health care costs, insurance and workers’ compensation adjustments, elimination of overhead allocations and foreign exchange gains or losses. The change from 2016 to 2015 is primarily attributable to lower LIFO expenses and lower payroll costs in 2015. (3) Consists primarily of intercompany eliminations for interest. (4) Consists primarily of depreciation for the consolidation centers and amortization of intangible assets. The change from 2016 to 2015 is primarily attributable to the implementation of a new ERP system in February 2016 and amortization of intangible assets related to acquisition of Pine State Convenience. Identifiable assets by geographic area are as follows (in millions): December 31, December 31, December 31, 2016 2015 2014 Identifiable assets: United States $ 1,317.2 $ 981.4 $ 913.8 Canada 179.8 95.9 115.8 Total $ 1,497.0 $ 1,077.3 $ 1,029.6 The net sales for the Company’s product categories are as follows (in millions): Year Ended December 31, 2016 2015 2014 Product Category Net Sales Net Sales Net Sales Cigarettes $ 10,335.7 $ 7,528.5 $ 6,942.0 Food (1) 1,422.5 1,251.1 1,180.9 Fresh (1) 389.8 335.0 281.1 Candy 620.0 557.0 534.3 Other tobacco products 1,133.8 870.3 827.5 Health, beauty & general 446.7 368.8 361.0 Beverages 176.5 156.6 151.8 Equipment/other 4.4 2.1 1.5 Total food/non-food products $ 4,193.7 $ 3,540.9 $ 3,338.1 Total net sales $ 14,529.4 $ 11,069.4 $ 10,280.1 _____________________________________________ (1) In 2016, the Fresh category was separated from the Food category to better highlight the growth in the Fresh commodity. The 2015 and 2014 presentations have been realigned to reflect these changes. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The tables below provide the Company’s unaudited consolidated results of operations for each of the four quarters in 2016 and 2015 : Three Months Ended (in millions, except per share data) December 31, September 30, June 30, March 31, 2016 2016 2016 2016 Net sales — Cigarettes (1) $ 2,734.7 $ 2,855.3 $ 2,631.1 $ 2,114.6 Net sales — Food/non-food (1) 1,102.1 1,138.6 1,056.3 896.7 Net sales (1) 3,836.8 3,993.9 3,687.4 3,011.3 Cost of goods sold (1) 3,637.8 3,795.0 3,499.5 2,860.2 Gross profit 199.0 198.9 187.9 151.1 Warehousing and distribution expenses (2) 116.2 117.4 106.0 91.6 Selling, general and administrative expenses (3) 50.3 57.6 53.0 49.4 Amortization of intangible assets 1.5 1.7 1.2 0.9 Total operating expenses 168.0 176.7 160.2 141.9 Income from operations 31.0 22.2 27.7 9.2 Interest expense (2.0 ) (1.5 ) (1.0 ) (0.8 ) Interest income 0.1 — — 0.1 Foreign currency gains (losses), net 0.6 (0.5 ) (0.3 ) 0.7 Income before income taxes 29.7 20.2 26.4 9.2 Income tax provision (11.0 ) (6.7 ) (10.1 ) (3.5 ) Net income 18.7 13.5 16.3 5.7 Basic net income per common share (4) $ 0.41 $ 0.29 $ 0.35 $ 0.12 Diluted net income per common share (4) $ 0.41 $ 0.29 $ 0.35 $ 0.12 Shares used to compute basic net income per common share 46.2 46.3 46.3 46.4 Shares used to compute diluted net income per common share 46.4 46.5 46.5 46.6 Excise taxes (1) $ 815.4 $ 879.1 $ 729.5 $ 598.0 Cigarette inventory holding gains (5) 6.9 0.4 7.0 1.0 LIFO expense 3.2 3.7 2.9 3.4 Depreciation and amortization 11.7 11.4 10.2 9.6 Stock-based compensation 0.6 1.9 1.7 1.9 Capital expenditures 9.8 21.7 14.0 8.8 ____________________________________________ (1) Excise taxes are included as a component of net sales and cost of goods sold. (2) Warehousing and distribution expenses are not included as a component of the Company’s cost of goods sold. This presentation may differ from that of other registrants. (3) Selling, general and administrative (“SG&A”) expenses include acquisition related expenses and transaction costs of $2.2 million , related primarily to the addition of Pine State consisting of $0.3 million in Q4, $0.5 million in Q3, $0.8 million in Q2, and $0.6 million in Q1. SG&A expenses also include $1.3 million related to pension settlements, consisting of $0.1 million in Q4 and $1.2 million in Q3 and a $2.0 million gain, net of legal costs, related to the settlement of a legacy legal proceeding with Sonitrol Corporation in Q1. (4) Totals may not agree with full year amounts due to rounding. (5) Cigarette inventory holding gains represent income related to cigarette inventories on hand at the time cigarette manufacturers increase their prices. Such increases are reflected in customer pricing for all subsequent sales, including sales of inventory on hand at the time of the increase. Three Months Ended (in millions, except per share data) December 31, September 30, June 30, March 31, 2015 2015 2015 2015 Net sales — Cigarettes (1) $ 1,934.5 $ 2,049.6 $ 1,899.1 $ 1,645.3 Net sales — Food/non-food (1) 880.6 942.0 911.3 807.0 Net sales (1) 2,815.1 2,991.6 2,810.4 2,452.3 Cost of goods sold (1) 2,645.0 2,820.0 2,651.5 2,315.0 Gross profit (2) 170.1 171.6 158.9 137.3 Warehousing and distribution expenses (3) 91.7 92.8 88.6 79.5 Selling, general and administrative expenses (4) 48.4 52.8 47.5 47.3 Amortization of intangible assets 0.8 0.6 0.6 0.6 Total operating expenses 140.9 146.2 136.7 127.4 Income from operations 29.2 25.4 22.2 9.9 Interest expense (0.6 ) (0.6 ) (0.7 ) (0.6 ) Interest income 0.1 0.1 0.1 0.2 Foreign currency gains (losses), net (0.5 ) (0.7 ) (0.2 ) (0.4 ) Income before income taxes 28.2 24.2 21.4 9.1 Income tax provision (10.5 ) (9.1 ) (8.2 ) (3.6 ) Net income 17.7 15.1 13.2 5.5 Basic net income per common share (5) $ 0.39 $ 0.33 $ 0.29 $ 0.12 Diluted net income per common share (5) $ 0.38 $ 0.33 $ 0.29 $ 0.12 Shares used to compute basic net income per common share 46.4 46.2 46.2 46.4 Shares used to compute diluted net income per common share 46.8 46.6 46.6 46.6 Excise taxes (1) $ 566.7 $ 607.1 $ 554.2 $ 483.7 Cigarette inventory holding gains (6) 4.7 0.6 3.8 1.0 Cigarette tax stamp inventory holding gains (7) 0.7 8.3 — — LIFO expense (8) (7.3 ) 3.3 3.5 2.4 Depreciation and amortization 9.6 9.9 9.7 8.7 Stock-based compensation 2.0 2.7 2.1 1.9 Capital expenditures 5.6 10.3 11.7 2.7 ______________________________________________ (1) Excise taxes are included as a component of net sales and cost of goods sold. (2) Includes OTP tax refunds, net of tax assessments, of $0.8 million in Q2 and $0.9 million in Q1 2015 . (3) Warehousing and distribution expenses are not included as a component of the Company’s cost of goods sold. This presentation may differ from that of other registrants. (4) Selling, general and administrative ("SG&A") expenses include acquisition and integration expenses of $1.8 million related primarily to the addition of Karrys Bros., consisting of $0.3 million in Q4, $0.4 million in Q3, $0.8 million in Q2, and $0.3 million in Q1. SG&A expenses also include $1.6 million related to pension settlements, consisting of $0.7 million in Q4 and $ 0.9 million in Q3 . (5) Totals may not agree with full year amounts due to rounding. (6) Cigarette inventory holding gains represent income related to cigarette inventories on hand at the time cigarette manufacturers increase their prices. Such increases are reflected in customer pricing for all subsequent sales, including sales of inventory on hand at the time of the increase. (7) Cigarette tax stamp inventory holding gains relate to income earned on cigarette tax stamp inventory quantities on hand at the time taxing jurisdictions increase their excise taxes. (8) LIFO expense decrease in 2015 was due primarily to a decrease in the PPI for certain product categories we use to measure food/non-food LIFO expense as published by the Bureau of Labor Statistics. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure | SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (in millions) Balance at Beginning of Period Charged to Costs and Expenses Deductions Charged to Other Accounts Balance at End of Period Year Ended December 31, 2016 Allowances for: Trade receivables $ 10.9 $ 2.0 $ (6.0 ) $ 0.2 $ 7.1 Inventory reserves 0.7 20.9 (20.8 ) — 0.8 $ 11.6 $ 22.9 $ (26.8 ) $ 0.2 $ 7.9 Year Ended December 31, 2015 Allowances for: Trade receivables $ 10.8 $ 1.3 $ (1.3 ) $ 0.1 $ 10.9 Inventory reserves 0.6 18.6 (18.5 ) — 0.7 $ 11.4 $ 19.9 $ (19.8 ) $ 0.1 $ 11.6 Year Ended December 31, 2014 Allowances for: Trade receivables $ 9.4 $ 2.2 $ (0.7 ) $ (0.1 ) $ 10.8 Inventory reserves 0.8 16.4 (16.6 ) — 0.6 $ 10.2 $ 18.6 $ (17.3 ) $ (0.1 ) $ 11.4 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The consolidated financial statements include Core-Mark and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in the consolidated financial statements. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company considers the allowance for doubtful accounts, vendor rebates and promotional allowances, claims liabilities and insurance recoverables, valuation of pension assets and obligations, valuation of long-lived assets and goodwill, realizability of deferred income taxes and uncertain tax positions to be those estimates which involve a higher degree of judgment and complexity. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue at the point at which the product is delivered and title passes to the customer. The Company includes fees charged to customers for shipping and handling activities in net sales and the related costs in cost of goods sold. Revenues are reported net of customer incentives, discounts and returns, including an allowance for estimated returns. The allowance for sales returns is calculated based on the Company’s returns experience, which has historically not been significant. The Company also earns management service fee revenue from operating third party distribution centers belonging to certain customers. These revenues represented less than 1% of the Company’s total net sales for 2016 , 2015 and 2014 . Service fee revenue is recognized as earned on a monthly basis in accordance with the terms of the management service fee contracts and is included in net sales on the accompanying consolidated statements of operations. |
Customers' Sales Incentives and Vendor Rebates and Promotional Allowances | Customers ’ Sales Incentives The Company also provides sales allowances or discounts to its customers on a regular basis. These customers’ sales incentives are recorded as a reduction to net sales as the sales incentive is earned by the customer. Additionally, the Company may provide allowances for the customers' commitments to continue using Core-Mark as the supplier. These incentives are known as racking allowances. These allowances may be paid at the inception of the contract or on a periodic basis. Allowances paid at the inception of the contract are deferred and amortized over the period of the distribution agreement as a reduction to sales. Vendor Rebates and Promotional Allowances Periodic payments from vendors in various forms including rebates, promotional allowances and volume discounts, are reflected in the carrying value of the related inventory when earned and in cost of goods sold when the related merchandise is sold. Up-front consideration received from vendors for purchase or other commitments is initially deferred and amortized ratably to cost of goods sold as the performance of the activities specified by the vendor is completed. Cooperative marketing incentives received from vendors to fund specific programs first offset the costs of the program, and to the extent the consideration exceeds the costs relating to the program, the excess funds are recorded as reductions to cost of goods sold. These amounts are recorded in the period the related promotional or merchandising programs are provided. Certain vendor incentive promotions require the Company to make assumptions and judgments regarding, for example, the likelihood of achieving market share levels or attaining specified levels of purchases. Vendor incentives are at the discretion of the Company’s vendors and can fluctuate due to changes in vendor strategies and market requirements. |
Excise Taxes | Excise Taxes The Company is responsible for collecting and remitting state, local and provincial excise taxes on cigarette and other tobacco products. These excise taxes are a significant component of the Company’s net sales and cost of goods sold. In 2016 , 2015 and 2014 , approximately $3.0 billion , $2.2 billion and $2.1 billion , or 21% , 20% and 21% of the Company’s net sales, and approximately 22% , 21% and 22% of its cost of goods sold, respectively, represented excise taxes. Federal excise taxes are levied on the manufacturers who, in turn, pass the tax on to the Company as part of the product cost. As a result, federal excise taxes are not a component of the Company’s excise taxes. |
Stock-based Compensation | Stock-based Compensation The Company accounts for stock-based compensation expense related to restricted stock unit ("RSU") awards, performance shares and stock options based on the grant-date fair value of the awards. For service based awards, the Company recognizes the expense using a straight-line method. For performance based awards, the Company recognizes the expense ratably based on the achievement of performance conditions. Although the Company has not granted stock options since 2011, the Company uses the Black-Scholes option valuation model to determine the fair value of stock option awards ( see Note 13 - Stock Incentive Plans ). Determining the appropriate fair value model and calculating the fair value of stock option awards at the grant date requires considerable judgment, including estimating stock price volatility, expected life of share awards and forfeiture rates. The Company develops its estimates based on historical data and market information, which can change significantly over time. |
Pension and Other Post-retirement Benefit Costs | Pension and Other Post-retirement Benefit Costs Pension and other post-retirement benefit costs are estimated on the basis of annual valuations by an independent actuary. Adjustments arising from plan amendments, changes in assumptions, and experience gains and losses are amortized over the expected average remaining service life of the employee group. The Company offers certain plan participants the option to receive a lump sum payment in lieu of future annuity pension benefits. Acceptance of the lump sum payment by plan participants may result in the Company recognizing a settlement charge and an adjustment in the projected benefit plan obligation. The Company recognizes an asset for the plan’s overfunded status or a liability for the plan’s underfunded status on its consolidated balance sheet as of the end of each fiscal year. The Company determines the plan’s funded status by measuring its assets and its obligations and recognizes changes in the funded status of its defined benefit post-retirement plan in the year in which the change occurred. On September 14, 2016, the Board of Directors approved a motion to terminate the Company’s qualified defined-benefit pension plan. The Company expects its pension liabilities will be settled through either lump sum payments or purchased annuities |
Income Taxes | Income Taxes Income taxes are accounted for using the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when the Company does not consider it more likely than not that some portion or all of the deferred tax assets will be realized. A tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. The Company has established an estimated liability for income tax exposures that arise and meet the criteria for accrual. The Company prepares and files tax returns based on its interpretation of tax laws and regulations and records estimates based on these judgments and interpretations. In the normal course of business, the Company’s tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax and interest assessments by these taxing authorities. Inherent uncertainties exist in estimates of tax contingencies due to changes in tax law resulting from legislation, regulation and/or as concluded through the various jurisdictions’ tax court systems. The Company classifies interest and penalties related to income taxes as income tax expense |
Earnings Per Share | Earnings Per Share Basic earnings per share is calculated by dividing net income by the weighted-average number of common shares outstanding during each period, excluding unvested RSUs and performance shares. Diluted earnings per share is calculated by dividing net income by weighted-average shares outstanding including common stock equivalents. Common stock equivalents include stock options, RSUs and performance based awards if the impact is dilutive, using the treasury stock method |
Cash, Cash Equivalents, Restricted Cash and Book Overdrafts | Cash, Cash Equivalents, Restricted Cash and Book Overdrafts Cash and cash equivalents include cash, money market funds and highly liquid investments with original maturities of three months or less. Restricted cash represents funds collected and set aside in trust as required by one of the Canadian provincial taxing authorities to secure amounts payable for cigarette and tobacco excise taxes. The Company had book overdrafts of $37.9 million and $29.2 million at December 31, 2016 and 2015 , respectively. Book overdrafts consist primarily of outstanding checks in excess of cash on hand in the corresponding bank accounts at the end of the period. The Company’s policy has been to fund these outstanding checks as they clear with cash held on deposit with other financial institutions or with borrowings under the Company’s revolving credit facility. |
Accounts Receivable and Allowance for Doubtful Accounts and Other Receivables | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable consists of trade receivables from customers. The Company evaluates the collectability of accounts receivable and determines the appropriate allowance for doubtful accounts based on historical experience and a review of specific customer accounts. Account balances are charged against the allowance when collection efforts have been exhausted and the receivable is deemed uncollectible ( see Note 4 - Other Consolidated Balance Sheet Accounts Detail ). Other Receivables Other receivables consist primarily of amounts due from vendors for promotional and other incentives, which are accrued as earned. The Company evaluates the collectability of amounts due from vendors and determines the appropriate allowance for doubtful accounts based on historical experience and a review of specific amounts outstanding |
Inventories | Inventories Inventories consist of finished goods, including cigarettes and other tobacco products, food and other consumable products held for re-sale and are valued at the lower of cost or market. In the Company’s U.S. divisions, cost is determined primarily on a last-in, first-out (“LIFO”) basis. The Company uses the link-chain dollar value LIFO method. The inventory price index computation ("IPIC") is used to calculate LIFO inflation indices for which the LIFO inflation source is the producer price indices ("PPI") published by the US Bureau of Labor Statistics ("BLS"). The Company uses the IPIC pooling method for which LIFO pools are established for each PPI in accordance with current regulations. When the Company is aware of material price increases or decreases from manufacturers, the Company estimates the PPI for the respective period if it determines the price increase is not fully reflected in the PPI in order to more accurately reflect inflation rates. Under the LIFO method, current costs of goods sold are matched against current sales. Inventories in the Company’s Canadian divisions are valued on a first-in, first-out ("FIFO") basis, as LIFO is not a permitted inventory valuation method in Canada. Approximately 82% and 88% of the Company’s inventory was valued on a LIFO basis at December 31, 2016 and 2015 , respectively. The Company reduces inventory value for spoiled, aged and unrecoverable inventory based on amounts on-hand and historical experience |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost, net of accumulated depreciation and amortization. Depreciation and amortization on new purchases are computed using the straight-line method over the assets’ estimated useful lives. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life of the property or the term of the lease including available renewal option terms if it is reasonably assured that those options will be exercised. Upon retirement or sale, the cost and related accumulated depreciation of the assets are removed and any related gain or loss is reflected in the consolidated statements of operations. Maintenance and repairs are charged to expense as incurred (s ee Note 6 - Property and Equipment, Net ). The Company uses the following depreciable lives for its property and equipment: Useful Life in Years Office furniture and equipment 3-10 Delivery equipment 4-10 Warehouse equipment 5-15 Leasehold improvements 3-25 Buildings 15-25 |
Other Long-lived Assets | Other Long-lived Assets Intangible assets with definite lives are generally amortized on a straight-line basis over the following lives: Useful Life in Years Customer relationships 10-15 Non-competition agreements 1-5 Trade names 1-2 Internally developed and other purchased software 3-7 |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy | The Company reviews its long-lived assets for indicators of impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. An impairment of long-lived assets exists when the carrying amount of a long-lived asset, or asset group, exceeds its fair value, and impairment losses are recorded when the carrying amount of the impaired asset is not recoverable. Recoverability is determined by comparing the carrying amount of the asset (or asset group) to the undiscounted cash flows which are expected to be generated from its use. |
Goodwill | Goodwill Goodwill represents the excess of cost over the fair value of net assets acquired in a business combination. Goodwill is not amortized. The Company tests goodwill for impairment annually as of October 1 or whenever events or circumstances indicate that it is more likely than not that the fair value of a reporting unit is below its carrying amount. The Company’s reporting units are its U.S. operations and Canadian operations. Whenever events or circumstances change, the Company assesses the related qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. The tests to evaluate goodwill for impairment are performed at the reporting unit level. In the first step of the quantitative impairment test, the Company compares the fair value of the reporting unit to its carrying value. If the fair value of the reporting unit is less than its carrying value, the Company performs a second step to determine the implied fair value of goodwill associated with the reporting unit. If the carrying value of goodwill exceeds the implied fair value of goodwill, such excess represents the amount of goodwill for which an impairment loss would be recorded. Determining the fair value of a reporting unit involves the use of significant estimates and assumptions. The estimated fair value of each reporting unit is based on the discounted cash flow method, which is based on historical and forecasted amounts specific to each reporting unit and considers net sales, gross profit, income from operations and cash flows and general economic and market conditions, as well as the impact of planned business and operational strategies and other estimates and assumptions for future growth rates, working capital and capital expenditures. The Company bases its fair value estimates on assumptions it believes to be reasonable at the time, but such assumptions are subject to inherent uncertainty. Measuring the fair value of reporting units constitutes a Level 3 measurement under the fair value hierarchy. |
Computer Software Developed or Obtained for Internal Use | Computer Software Developed or Obtained for Internal Use The Company accounts for computer software systems, namely SAP Enterprise Resource Planning modules, the Company's proprietary Distribution Center Management System (“DCMS”), and software purchased from third-party vendors, using certain criteria under which costs associated with this software are either expensed or capitalized and amortized over periods from three to seven years. |
Debt Issuance Costs | Debt Issuance Costs Debt issuance costs related to the Company's revolving credit facility ("Credit Facility") are deferred and amortized as interest expense over the term of the related debt agreement on a straight-line basis, which approximates the effective interest method. Debt issuance costs are included in deposits and prepayments and other non-current assets on the accompanying consolidated balance sheets. |
Claims Liabilities and Insurance Recoverables | Claims Liabilities and Insurance Recoverables The Company maintains reserves related to health and welfare, workers’ compensation, auto and general liability programs that are principally self-insured. The Company currently has a per-claim deductible of $500,000 for its workers’ compensation, general and auto liability self-insurance programs and a per-person annual claim deductible of $250,000 for its health and welfare program. The Company purchases insurance to cover the claims that exceed the deductible up to policy limits. Self-insured reserves are for pending or future claims that fall outside the policy and reserves include an estimate of expected settlements on pending claims and a provision for claims incurred but not reported. Estimates for workers’ compensation, auto and general liability insurance are based on the Company’s assessment of potential liability using an annual actuarial analysis of available information with respect to pending claims, historical experience and current cost trends. Reserves for claims under these programs are included in accrued liabilities (current portion) and claims liabilities, net of current portion on the accompanying consolidated balance sheets. Claims liabilities and the related recoverables from insurance carriers for estimated claims in excess of the deductible and other insured events are presented in their gross amounts on the accompanying consolidated balance sheets because there is no right of offset. The carrying values of claims liabilities and insurance recoverables are not discounted. Insurance recoverables are included in other receivables, net and other non-current assets, net. |
Foreign Currency Translation | Foreign Currency Translation The operating assets and liabilities of the Company’s Canadian operations, whose functional currency is the Canadian dollar, are translated to U.S. dollars at exchange rates in effect at period-end. Translation gains and losses are recorded in Accumulated Other Comprehensive Income ("AOCI") as a component of stockholders’ equity. Revenue and expenses from Canadian operations are translated using the monthly average exchange rates in effect during the period in which the transactions occur. The Company also recognizes gains or losses on foreign currency exchange transactions between its Canadian and U.S. operations, net of applicable income taxes, in the consolidated statements of operations. The Company currently does not hedge our Canadian foreign currency cash flow. |
Total Comprehensive Income | Total Comprehensive Income Comprehensive income consists of net income and other transactions recorded directly to stockholders’ equity that are excluded from net income. Other comprehensive income is comprised of defined benefit plan adjustments and foreign currency translation adjustments related to the Company’s foreign operations in Canada, whose functional currency is not the U.S. dollar |
Fair Value Measurements | Fair Value Measurements The Company’s financial assets and liabilities are recognized or disclosed at fair value in the financial statements on a recurring basis. The carrying amount of cash equivalents, restricted cash, trade accounts receivable, other receivables, trade accounts payable, cigarette and tobacco taxes payable and other accrued liabilities approximates fair value because of the short maturity of these financial instruments. The carrying amount of the Company’s variable rate debt approximates fair value. The Company calculates the fair value of certain assets related to acquisitions and cash based pension plan assets using assumptions that market participants would use in pricing these assets ( see Note 11 - Employee Benefit Plans ). The Company uses a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value and gives precedence to observable inputs in determining fair value. An instrument’s level within the hierarchy is based on the lowest level of any significant input to the fair value measurement. The following levels were established for each input: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 - Unobservable inputs for the asset or liability, which reflect the Company’s own assumptions about what market participants would assume when pricing the asset or liability. |
Business Combinations | Business Combinations The Company accounts for all business combinations using the acquisition method of accounting, which allocates the fair value of the purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions. Management may further adjust the acquisition date fair values for a period of up to one year from the date of acquisition. Acquisition related expenses and transaction costs associated with business combinations are expensed as incurred |
Risks and Concentrations | Risks and Concentrations Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash investments, accounts receivable and other receivables. The Company places its cash and cash equivalents in short-term instruments with high quality financial institutions and limits the amount of credit exposure in any one financial instrument. The Company pursues amounts and incentives due from vendors in the normal course of business and is often allowed to deduct these amounts and incentives from payments made to vendors. A credit review is completed for new customers and ongoing credit evaluations of each customer’s financial condition are performed periodically, with reserves maintained for potential credit losses. Credit limits given to customers are based on a risk assessment of their ability to pay and other factors. Accounts receivable are typically not collateralized, but the Company may require prepayments or other guarantees whenever deemed necessary. |
Recent Accounting Standards or Updates Not Yet Effective | Recent Accounting Standards or Updates Not Yet Effective On May 28, 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09 (ASU 2014-09), Revenue from Contracts with Customers: Topic 606 (“ASU 2014-09”), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. This standard is effective for the Company in the first quarter of 2018. The Company's preliminary assessment supports that financial statement impacts may include: capitalization of successful contract costs, recognition of contract assets and liabilities for certain contracts that are performed but not completed, and the timing of recognition of variable consideration received from vendors and paid to customers. The Company expects to finalize its assessment and approach to adopting ASU 2014-09 on its consolidated financial statements by June 30, 2017. On November 20, 2015, the FASB issued ASU No.2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes: Topic 740 (“ASU 2015-17”). The new guidance requires entities with a classified balance sheet to present all deferred tax assets and liabilities as non-current. ASU 2015-17 requires either prospective or retrospective application and is effective for annual periods beginning after December 15, 2016. The adoption of ASU 2015-17 will not have a material impact on the presentation of its consolidated financial statements. On February 25, 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which supersedes existing lease guidance. The new guidance increases transparency by requiring lessees to recognize right-of-use assets and corresponding lease liabilities on the balance sheet. This standard is effective for annual periods beginning after December 15, 2018, although early adoption is permitted. The Company believes the new standard will have a material impact on its consolidated balance sheets. The Company is currently quantifying the impact and evaluating its approach to adopting ASU 2016-02 on its consolidated financial statements. On March 30, 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation ( Topic 718 ): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). The new guidance simplifies several aspects of how companies account for share-based compensation, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statements of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016. ASU 2016-09 will result in the Company recognizing excess tax benefits or deficiencies in net income instead of being capitalized as additional paid-in capital. We expect such impact to be approximately $1.6 million in 2017. On June 16, 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). The new guidance replaces the current incurred loss impairment approach with a methodology that incorporates all expected credit loss estimates, resulting in more timely recognition of losses. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, although early adoption is permitted. The Company has determined the adoption of ASU 2016-13 will not have a material impact on its consolidated financial statements. On August 26, 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). The new guidance addresses eight specific cash flow presentation and classification issues in the statement of cash flows to reduce existing diversity in practice. ASU 2016-15 is effective for annual periods beginning after December 15, 2017, although early adoption is permitted. The Company has determined the adoption of ASU 2016-15 will not have a material impact on its consolidated financial statements. On November 17, 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash ("ASU 2016-18"). The new guidance requires the Statements of Cash Flows to reconcile the changes in the total of cash, cash equivalents, and restricted cash. As a result, transfers between cash and cash equivalents, and restricted cash and restricted cash equivalents will no longer be presented in the Statement of Cash Flows. ASU 2016-18 is effective for annual periods beginning after December 15, 2017, although early adoption is permitted. As a result of this pronouncement, the Company expects that it will combine its movements of restricted cash, with those of non-restricted cash and cash equivalents, as reflected in the Company’s Consolidated Statements of Cash Flows. On January 26, 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). The new guidance simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. ASU 2017-04 requires goodwill impairment to be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of its goodwill. ASU 2017-04 requires prospective application and is effective for annual periods beginning after December 15, 2019. The Company has determined the adoption of ASU 2017-04 will not have a material impact on its consolidated financial statements. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Property and Equipment, Useful Life | The Company uses the following depreciable lives for its property and equipment: Useful Life in Years Office furniture and equipment 3-10 Delivery equipment 4-10 Warehouse equipment 5-15 Leasehold improvements 3-25 Buildings 15-25 Property and equipment consist of the following (in millions): December 31, 2016 December 31, 2015 Delivery, warehouse and office equipment (1) $ 280.4 $ 235.3 Leasehold improvements 68.6 54.4 Land and buildings (2) 32.0 28.9 Construction in progress 3.0 0.8 384.0 319.4 Less: Accumulated depreciation and amortization (189.3 ) (159.9 ) Total property and equipment, net $ 194.7 $ 159.5 ______________________________________________ (1) Includes equipment capital leases of $13.5 million for 2016 and $13.4 million for 2015 . (2) Includes $4.8 million for a capital lease related to a warehouse facility in both 2016 and 2015 . |
Intangible Assets with Definite Lives, Useful Life | Intangible assets with definite lives are generally amortized on a straight-line basis over the following lives: Useful Life in Years Customer relationships 10-15 Non-competition agreements 1-5 Trade names 1-2 Internally developed and other purchased software 3-7 The carrying amount and accumulated amortization of other intangible assets as of December 31, 2016 and 2015 are as follows (in millions): December 31, 2016 December 31, 2015 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Customer relationships $ 28.3 $ (9.4 ) $ 18.9 $ 21.1 $ (7.3 ) $ 13.8 Non-competition agreements 5.0 (3.1 ) 1.9 3.2 (2.9 ) 0.3 Trade names 1.0 (0.3 ) 0.7 — — — Favorable lease terms 0.1 — 0.1 — — — Internally developed and other purchased software 33.0 (13.1 ) 19.9 25.8 (10.4 ) 15.4 Total other intangible assets $ 67.4 $ (25.9 ) $ 41.5 $ 50.1 $ (20.6 ) $ 29.5 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Schedule of Assets Acquired and Liabilities Assumed | The following table presents the assets acquired and liabilities assumed, based on their fair values and purchase consideration (in millions): June 6, 2016 Accounts receivable $ 35.5 Inventories 21.2 Deposits and prepayments, and other 0.9 Property and equipment 10.3 Goodwill 13.1 Other intangible assets 10.2 Less: Accrued liabilities, and other (2.8 ) Total consideration $ 88.4 |
Schedule of Intangible Assets Acquired | Based on the valuation, intangible assets acquired include the following (in millions): Fair Value Useful Life in Years Customer relationships $ 7.2 12 Non-competition agreements 1.9 5 Trade names 1.0 2 Favorable lease terms 0.1 2 Total intangible assets $ 10.2 |
Other Consolidated Balance Sh29
Other Consolidated Balance Sheet Accounts Detail (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Changes in Allowance for Doubtful Accounts | The changes in the allowance for doubtful accounts due from customers consist of the following (in millions): Year Ended December 31, 2016 2015 2014 Balance, beginning of year $ 10.9 $ 10.8 $ 9.4 Net additions charged to operations (1) 2.0 1.3 2.2 Less: Write-offs and adjustments (5.8 ) (1.2 ) (0.8 ) Balance, end of year $ 7.1 $ 10.9 $ 10.8 ______________________________________________ (1) The net additions to the allowance for doubtful accounts were recognized in the consolidated statements of operations as a component of the Company’s selling, general and administrative expenses. |
Schedule of Other Receivables, Net | Other receivables, net consist of the following (in millions): December 31, 2016 December 31, 2015 Vendor receivables, net $ 90.6 $ 59.0 Insurance recoverables, current 2.1 1.5 Other miscellaneous receivables (1) 13.8 8.9 Total other receivables, net $ 106.5 $ 69.4 ______________________________________________ (1) Other miscellaneous receivables include amounts related primarily to notes receivables, miscellaneous tax receivables, receivables from the Company’s third party logistics customers, and other miscellaneous receivables. |
Schedule of Deposits and Prepayments | Deposits and prepayments consist of the following (in millions): December 31, 2016 December 31, 2015 Vendor prepayments $ 44.7 $ 34.1 Deposits (1) 8.5 4.7 Prepaid taxes 10.5 10.6 Racking allowances, current 5.7 6.4 Other prepayments (2) 13.4 9.2 Total deposits and prepayments $ 82.8 $ 65.0 ______________________________________________ (1) Deposits include amounts related primarily to cigarette stamps and workers’ compensation claims. (2) Other prepayments include prepayments relating to insurance policies, software licenses, rent and other miscellaneous prepayments. |
Schedule of Other Non-Current Assets, Net | Other non-current assets, net of current portion, consist of the following (in millions): December 31, 2016 December 31, 2015 Insurance recoverables $ 12.9 $ 14.4 Debt issuance costs 1.6 0.9 Insurance deposits 3.4 2.9 Racking allowances, net 5.0 6.5 Other assets 3.7 3.4 Total other non-current assets, net $ 26.6 $ 28.1 |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following (in millions): December 31, 2016 December 31, 2015 Accrued payroll, retirement and other benefits (1) $ 35.7 $ 29.9 Claims liabilities, current 13.4 11.9 Accrued customer incentives payable 40.1 20.3 Indirect taxes 6.2 7.3 Vendor advances 10.9 11.0 Other accrued expenses (2) 25.5 26.5 Total accrued liabilities $ 131.8 $ 106.9 ______________________________________________ (1) The Company’s accrued payroll, retirement and other benefits include accruals for vacation, bonuses, wages, 401(k) benefit matching and the current portion of pension and post-retirement benefit obligations. (2) The Company’s other accrued expenses include accruals for goods and services, lease liabilities, construction in process, legal expenses, and other miscellaneous accruals. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following (in millions): December 31, 2016 December 31, 2015 Inventories at FIFO, net of reserves $ 727.0 $ 524.6 Less: LIFO reserve (130.4 ) (117.2 ) Total inventories at LIFO, net of reserves $ 596.6 $ 407.4 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | The Company uses the following depreciable lives for its property and equipment: Useful Life in Years Office furniture and equipment 3-10 Delivery equipment 4-10 Warehouse equipment 5-15 Leasehold improvements 3-25 Buildings 15-25 Property and equipment consist of the following (in millions): December 31, 2016 December 31, 2015 Delivery, warehouse and office equipment (1) $ 280.4 $ 235.3 Leasehold improvements 68.6 54.4 Land and buildings (2) 32.0 28.9 Construction in progress 3.0 0.8 384.0 319.4 Less: Accumulated depreciation and amortization (189.3 ) (159.9 ) Total property and equipment, net $ 194.7 $ 159.5 ______________________________________________ (1) Includes equipment capital leases of $13.5 million for 2016 and $13.4 million for 2015 . (2) Includes $4.8 million for a capital lease related to a warehouse facility in both 2016 and 2015 . |
Goodwill and Other Intangible32
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The carrying amount of goodwill during 2016 and 2015 were as follows (in millions): Year Ended December 31, 2016 2015 Goodwill, beginning of year $ 22.9 $ 22.9 Pine State acquisition 13.1 — Goodwill, end of year $ 36.0 $ 22.9 |
Schedule of Finite-Lived Intangible Assets | Intangible assets with definite lives are generally amortized on a straight-line basis over the following lives: Useful Life in Years Customer relationships 10-15 Non-competition agreements 1-5 Trade names 1-2 Internally developed and other purchased software 3-7 The carrying amount and accumulated amortization of other intangible assets as of December 31, 2016 and 2015 are as follows (in millions): December 31, 2016 December 31, 2015 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Customer relationships $ 28.3 $ (9.4 ) $ 18.9 $ 21.1 $ (7.3 ) $ 13.8 Non-competition agreements 5.0 (3.1 ) 1.9 3.2 (2.9 ) 0.3 Trade names 1.0 (0.3 ) 0.7 — — — Favorable lease terms 0.1 — 0.1 — — — Internally developed and other purchased software 33.0 (13.1 ) 19.9 25.8 (10.4 ) 15.4 Total other intangible assets $ 67.4 $ (25.9 ) $ 41.5 $ 50.1 $ (20.6 ) $ 29.5 |
Schedule of Expected Amortization Expense | Estimated future amortization expense for intangible assets is as follows (in millions): Year ending December 31, 2017 $ 6.5 2018 5.9 2019 5.6 2020 5.5 2021 5.1 2022 and thereafter 12.9 Total $ 41.5 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Amounts borrowed, outstanding letters of credit and amounts available to borrow, net of certain reserves required under the Credit Facility, were as follows (in millions): December 31, December 31, 2016 2015 Amounts borrowed $ 336.0 $ 47.0 Outstanding letters of credit 17.4 18.5 Amounts available to borrow (1) 224.8 123.9 ______________________________________________ (1) Excluding $100 million expansion feature. Total long-term debt consists of the following (in millions): December 31, December 31, 2016 2015 Amounts borrowed (Credit Facility) $ 336.0 $ 47.0 Obligations under capital leases (Note 9) 11.7 13.4 Total long-term debt $ 347.7 $ 60.4 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum rental payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year and excluding contracted vehicle maintenance costs) were as follows as of December 31, 2016 (in millions): Year ending December 31, 2017 $ 54.3 2018 51.9 2019 47.4 2020 41.9 2021 33.2 2022 and thereafter 121.3 Total $ 350.0 |
Schedule of Future Minimum Lease Payments for Capital Leases | Future minimum lease payments under non-cancelable capital leases were as follows as of December 31, 2016 (in millions): Year ending December 31, 2017 $ 2.6 2018 2.4 2019 2.2 2020 1.9 2021 1.3 2022 and thereafter 6.4 Total 16.8 Less: Interest (3.2 ) Present value of future minimum lease payments 13.6 Less: current portion (1.9 ) Non-current portion $ 11.7 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The Company’s income tax provision consists of the following (in millions): Year Ended December 31, 2016 2015 2014 Current: Federal $ 21.4 $ 19.4 $ 22.0 State 3.1 3.2 3.1 Total current tax provision 24.5 22.6 25.1 Deferred: Federal 6.7 7.8 (0.6 ) State 0.8 1.1 (0.5 ) Foreign (0.7 ) (0.1 ) (0.3 ) Total deferred tax provision (benefit) 6.8 8.8 (1.4 ) Total income tax provision $ 31.3 $ 31.4 $ 23.7 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate and income tax provision is as follows (in millions): Year Ended December 31, 2016 2015 2014 Federal income tax provision at the statutory rate $ 29.9 35.0 % $ 29.0 35.0 % $ 23.2 35.0 % Increase (decrease) resulting from: State income taxes, net of federal benefit 2.9 3.4 2.9 3.5 2.3 3.5 Decrease in unrecognized tax benefits (inclusive of related interest and penalty) (0.3 ) (0.4 ) — — (0.9 ) (1.4 ) Effect of foreign operations (0.7 ) (0.8 ) (0.1 ) (0.1 ) (0.3 ) (0.5 ) Change in valuation allowance — — (0.1 ) (0.1 ) — — Tax credits and other, net (0.5 ) (0.6 ) (0.3 ) (0.4 ) (0.6 ) (0.9 ) Income tax provision $ 31.3 36.6 % $ 31.4 37.9 % $ 23.7 35.7 % |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of significant temporary differences which comprise deferred tax assets and liabilities are as follows (in millions): December 31, 2016 December 31, 2015 Deferred tax assets: Employee benefits, including post-retirement benefits $ 15.4 $ 15.2 Trade and other receivables 2.9 4.1 Goodwill and intangibles 0.2 2.0 Self-insurance reserves 1.7 1.5 Other 6.1 4.0 Subtotal 26.3 26.8 Less: valuation allowance — — Net deferred tax assets $ 26.3 $ 26.8 Deferred tax liabilities: Inventories $ 7.0 $ 9.0 Property and equipment 36.2 27.2 Goodwill and intangibles 5.6 6.0 Other 1.8 1.6 Total deferred tax liabilities $ 50.6 $ 43.8 Total net deferred tax liabilities $ (24.3 ) $ (17.0 ) Net current deferred tax assets 4.6 1.6 Net non-current deferred tax liabilities $ (28.9 ) $ (18.6 ) |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amounts of unrecognized tax benefits for 2016 , 2015 and 2014 is as follows (in millions): Year Ended December 31, 2016 2015 2014 Balance at beginning of year $ 0.4 $ 0.4 $ 0.6 Lapse of statute of limitations (0.2 ) — (0.2 ) Balance at end of year $ 0.2 $ 0.4 $ 0.4 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Reconciliation of Changes in Pension Plans Benefit Obligation and Fair Value of Assets, Statement of Funded Status and Amount Recognized in Balance Sheet and Accumulated Other Comprehensive Income | The following tables provide a reconciliation of the changes in the Pension Plans’ benefit obligation and fair value of assets, the funded status of the plans and the amounts recognized in the consolidated balance sheets and AOCI as of December 31, 2016 and 2015 (in millions): Pension Benefits Other Post-retirement Benefits December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Change in Benefit Obligation: Obligation at beginning of year $ 37.0 $ 43.6 $ 3.0 $ 3.0 Interest cost 1.2 1.7 0.2 0.1 Actuarial loss (gain) 1.7 (2.0 ) (0.5 ) 0.1 Benefit payments (2.4 ) (2.8 ) (0.1 ) (0.2 ) Group annuity contract discontinuance — (1.3 ) — — Settlement of accumulated benefits (2.7 ) (2.2 ) — — Benefit obligation at end of year $ 34.8 $ 37.0 $ 2.6 $ 3.0 Change in Plan Assets: Fair value of plan assets at beginning of year $ 32.3 $ 40.4 $ — $ — Actual return on plan assets 1.4 (1.8 ) — — Employer contributions 1.9 — 0.1 0.2 Benefit payments (2.4 ) (2.8 ) (0.1 ) (0.2 ) Group annuity contract discontinuance — (1.3 ) — — Settlement of accumulated benefits (2.7 ) (2.2 ) — — Fair value of plan assets at end of year $ 30.5 $ 32.3 $ — $ — Funded status at end of year $ (4.3 ) $ (4.7 ) $ (2.6 ) $ (3.0 ) Amounts recognized in the balance sheet consist of: Current liabilities $ (4.3 ) $ — $ (0.2 ) $ (0.2 ) Non-current liabilities — (4.7 ) (2.4 ) (2.8 ) Total liabilities $ (4.3 ) $ (4.7 ) $ (2.6 ) $ (3.0 ) Amounts recognized in AOCI consist of: Net actuarial loss (gain) $ 17.7 $ 17.5 $ (0.7 ) $ (0.2 ) Total $ 17.7 $ 17.5 $ (0.7 ) $ (0.2 ) Additional Information: Accumulated benefit obligation $ 34.8 $ 37.0 |
Schedule of Net Periodic Benefit Cost and Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | The following table provides components of net periodic benefit cost and other changes in plan assets and benefit obligations recognized in other comprehensive income (in millions): Pension Benefits Other Post-retirement Benefits December 31, December 31, 2016 2015 2014 2016 2015 2014 Net Periodic Benefit Cost: Interest cost $ 1.2 $ 1.7 $ 1.8 $ 0.2 $ 0.1 $ 0.1 Expected return on plan assets (1.8 ) (2.1 ) (2.5 ) — — — Amortization of net actuarial loss (gain) 0.6 0.6 0.4 — — (0.1 ) Settlement charge 1.3 1.6 — — — — Net periodic benefit cost (income) $ 1.3 $ 1.8 $ (0.3 ) $ 0.2 $ 0.1 $ — Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: Net actuarial loss (gain) $ 2.1 $ 1.9 $ 5.2 $ (0.5 ) $ 0.2 $ (0.4 ) Settlement charge (1.3 ) (1.6 ) — — — — Amortization of actuarial (loss) gain (0.6 ) (0.6 ) (0.4 ) — — 0.1 Total net loss (gain) recognized in other comprehensive income $ 0.2 $ (0.3 ) $ 4.8 $ (0.5 ) $ 0.2 $ (0.3 ) |
Schedule of Assumptions Used | The following table shows the weighted-average assumptions used in the measurement of: Pension Benefits Other Post-retirement Benefits December 31, December 31, 2016 2015 2014 2016 2015 2014 Benefit Obligations: Discount rate 3.30 % 4.32 % 4.00 % 3.98 % 4.32 % 3.99 % Expected return on assets 3.25 % 6.00 % 5.50 % N/A N/A N/A Net Periodic Benefit Costs: Discount rate 4.13 % 4.05 % 4.60 % 4.29 % 3.99 % 4.6 % Expected return on assets 3.57 % 5.95 % 6.55 % 3.47 % N/A N/A |
Schedule of Health Care Cost Trend Rates | The health care cost trend rates assumed for the end of year benefit obligation for the post-retirement benefit plans are as follows: December 31, 2016 December 31, 2015 Assumed current trend rate for next year for participants under 65 6.62% 6.80% Assumed current trend rate for next year for participants 65 and over 7.73% 7.85% Ultimate year trend rate 4.50% 5.00% Year that ultimate trend rate is reached for participants under 65 2025 2024 Year that ultimate trend rate is reached for participants 65 and over 2025 2023 |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one percent point change in assumed health care cost trend rates would have the following effects (in millions): 1% Increase 1% Decrease Effect on total of service and interest cost components of net periodic post-retirement health care benefit cost $ — $ — Effect on the health care component of the accumulated post-retirement benefit obligation $ 0.2 $ 0.3 |
Schedule of Fair Value of Plan Assets | The fair value measurements of the Pension Plans’ assets by asset category at December 31, 2015 are as follows (in millions): Asset Category Total Investments Measured at Net Asset Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 1.0 $ — $ 1.0 $ — $ — Group trust 31.3 31.3 — — — Total $ 32.3 $ 31.3 $ 1.0 $ — $ — The fair value measurements of the Pension Plans’ assets by asset category at December 31, 2016 are as follows (in millions): Asset Category Total Investments Measured at Net Asset Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 1.6 $ — $ 1.6 $ — $ — Group trust 28.9 28.9 — — — Total $ 30.5 $ 28.9 $ 1.6 $ — $ — |
Schedule of Expected Benefit Payments | Estimated future benefit payments reflecting future service are as follows (in millions): Year ending December 31, Pension Benefits Other Post-retirement Benefits 2017 $ 35.8 $ 0.2 2018 — 0.2 2019 — 0.2 2020 — 0.2 2021 — 0.2 2021 through 2025 — 0.9 |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | Expected amortization from AOCI into net periodic benefit cost for the year ending December 31, 2017 (in millions): Pension Benefits Other Post-retirement Benefits Expected amortization of net actuarial loss $ 0.7 $ (0.1 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted net earnings per share (dollars and shares in millions, except per share amounts): Years Ended December 31, 2016 2015 2014 Net Income Weighted-Average Shares Outstanding Net Income Per Common Share Net Income Weighted-Average Shares Outstanding Net Income Per Common Share Net Income Weighted-Average Shares Outstanding Net Income Per Common Share Basic EPS $ 54.2 46.3 $ 1.17 $ 51.5 46.2 $ 1.12 $ 42.7 46.2 $ 0.93 Effect of dilutive common share equivalents: Restricted stock units — 0.1 — — 0.2 (0.01 ) — 0.2 (0.01 ) Stock options — — — — — — — 0.2 — Performance shares — 0.1 — — 0.2 — — — — Diluted EPS $ 54.2 46.5 $ 1.17 $ 51.5 46.6 $ 1.11 $ 42.7 46.6 $ 0.92 ______________________________________________ Note: Basic and diluted earnings per share are calculated based on unrounded actual amounts. |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Securities To Be Issued and Remaining Available For Future Issuance | The following table summarizes the number of securities to be issued and remaining available for future issuance under all of the Company’s stock incentive plans as of December 31, 2016 : Number of securities to be issued upon exercise of outstanding options and vesting of RSUs Weighted-average exercise price of outstanding options and vesting of RSUs Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column 1) 2007 Long-Term Incentive Plan (1) 1,624 $ 0.01 — 2010 Long-Term Incentive Plan (2) 399,568 $ 0.01 2,684,821 ______________________________________________ (1) Includes RSUs. (2) Includes RSUs and performance shares. |
Schedule of Share-based Compensation, Activity | Year Ended December 31, 2016 2015 2014 Weighted-average fair value per share of grants: RSUs $ 38.21 $ 32.47 $ 18.57 Performance shares (1) N/A $ 32.60 $ 18.40 ______________________________________________ ( 1) Performance shares awarded in 2016 were ultimately canceled as the Company did not achieve the related performance targets for 2016 . The following table summarizes the activity for all stock options, RSUs and performance shares under all of the Long-Term Incentive Plans (“LTIPs”) for the year ended December 31, 2016 : December 31, 2015 Activity during 2016 December 31, 2016 Outstanding Granted Vested / Exercised Canceled Outstanding Exercisable Plans Securities Number Price Number Price Number Price Number Price Number Price Number Price 2005 LTIP RSUs 12,208 0.01 — — (12,208 ) 0.01 — — — — — — 2007 LTIP RSUs 1,624 0.01 — — — — — — 1,624 0.01 1,624 0.01 Options 21,206 4.80 — — (12,370 ) 4.80 (8,836 ) 4.80 — — — — 2010 LTIP RSUs 328,578 0.01 124,077 (1) 0.01 (219,237 ) 0.01 (2,560 ) 0.01 230,858 0.01 — — Options 30,000 8.20 — — (30,000 ) 8.20 — — — — — — Performance shares 336,268 0.01 156,576 (2) 0.01 (128,522 ) 0.01 (195,612 ) 0.01 168,710 0.01 — — Total 729,884 280,653 (402,337 ) (207,008 ) 401,192 1,624 ______________________________________________ Note: Price is weighted-average price per share. (1) Consists of non-performance RSUs. (2) In January 2016 , the Company awarded a maximum of 156,576 performance shares that would have been received if the highest level of performance was achieved. The shares were ultimately canceled as the Company did not achieve the related performance targets for fiscal 2016. |
Schedule of Stock Options, Restricted Stock Units and Performance Shares Vested and Expected to Vest | The following table summarizes RSUs and performance shares that have vested and are expected to vest as of December 31, 2016 : December 31, 2016 Outstanding Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value (1) (dollars in thousands) Plans Securities Vested Expected to vest (2) Vested Expected to vest (2) Vested Expected to vest (2) 2007 LTIP RSUs 1,624 — — — 70 — 2010 LTIP RSUs — 222,963 — — — 9,601 Performance shares — 167,023 — — — 7,192 Total 1,624 389,986 $ 70 $ 16,793 ______________________________________________ ( 1) Aggregate intrinsic value is calculated based upon the difference between the exercise price of RSUs and the Company’s closing common stock price on December 31, 2016 of $43.07 , multiplied by the number of instruments that are vested or expected to vest. RSUs having exercise prices greater than the closing stock price noted above are excluded from this calculation. (2) RSUs and performance shares that are expected to vest are net of estimated future forfeitures. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of Dividends | The Board of Directors approved the following cash dividends in 2016 (in millions, except per share data): Declaration Date Dividends Per Share Record Date Cash Payment Amount (1) Payment Date February 24, 2016 $0.08 March 11, 2016 $3.8 March 28, 2016 May 9, 2016 $0.08 May 25, 2016 $3.7 June 15, 2016 August 8, 2016 $0.08 August 24, 2016 $3.8 September 15, 2016 November 4, 2016 $0.09 November 23, 2016 $4.2 December 15, 2016 ______________________________________________ (1) Includes cash payments on declared dividends and payments made on RSUs vested subsequent to the payment date. |
Schedule of Stock Repurchase Activities | The following table summarizes the Company’s stock repurchase activities for the years ended December 31, 2016 and 2015 : Year Ended December 31, 2016 2015 Number of shares repurchased 237,869 302,366 Average price per share $ 37.76 $ 30.35 Total repurchase costs (in millions) $ 8.9 $ 9.2 |
Other Comprehensive Income (L40
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of Other Comprehensive Income and Related Tax Effects | The components of other comprehensive income (“OCI”) and the related tax effects were as follows (in millions): Year Ended December 31, 2016 2015 2014 Net Net Net Before Tax of Before Tax of Before Tax of Tax Effect Tax Tax Effect Tax Tax Effect Tax Defined benefit plan adjustments: Net actuarial loss during the year $ (1.6 ) $ 0.6 $ (1.0 ) $ (2.1 ) $ 0.9 $ (1.2 ) $ (4.8 ) $ 1.7 $ (3.1 ) Settlement charge 1.3 (0.5 ) 0.8 1.6 (0.6 ) 1.0 — — — Amortization of net actuarial loss included in net income 0.6 (0.2 ) 0.4 0.6 (0.2 ) 0.4 0.3 (0.1 ) 0.2 Net gain (loss) during the year 0.3 (0.1 ) 0.2 0.1 0.1 0.2 (4.5 ) 1.6 (2.9 ) Foreign currency translation gain (loss) 1.9 — 1.9 (4.9 ) — (4.9 ) (3.0 ) — (3.0 ) Other comprehensive income (loss) $ 2.2 $ (0.1 ) $ 2.1 $ (4.8 ) $ 0.1 $ (4.7 ) $ (7.5 ) $ 1.6 $ (5.9 ) |
Schedule of Changes in Accumulated Other Comprehensive Income | The following table provides a summary of the changes in AOCI for the years presented (in millions): Foreign Defined Currency Benefit Plan Translation Total Balance as of December 31, 2013 $ (7.9 ) $ 2.2 $ (5.7 ) Other comprehensive loss (2.9 ) (3.0 ) (5.9 ) Balance as of December 31, 2014 (10.8 ) (0.8 ) (11.6 ) Other comprehensive income (loss) 0.2 (4.9 ) (4.7 ) Balance as of December 31, 2015 (10.6 ) (5.7 ) (16.3 ) Other comprehensive income 0.2 1.9 2.1 Balance as of December 31, 2016 $ (10.4 ) $ (3.8 ) $ (14.2 ) |
Segment and Geographic Inform41
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Information by Geographical Area | Information about the Company’s business operations based on geographic areas is as follows (in millions): Year Ended December 31, 2016 2015 2014 Net sales: United States $ 13,133.0 $ 9,829.7 $ 8,989.0 Canada 1,356.4 1,203.5 1,250.9 Corporate (1) 40.0 36.2 40.2 Total $ 14,529.4 $ 11,069.4 $ 10,280.1 Income (loss) before income taxes: United States $ 90.7 $ 79.4 $ 70.8 Canada 6.4 1.7 3.2 Corporate (2) (11.6 ) 1.8 (7.6 ) Total $ 85.5 $ 82.9 $ 66.4 Interest expense: United States $ 40.8 $ 35.0 $ 32.0 Canada 1.1 0.7 0.7 Corporate (3) (36.6 ) (33.2 ) (30.3 ) Total $ 5.3 $ 2.5 $ 2.4 Depreciation and amortization: United States $ 31.0 $ 29.3 $ 24.9 Canada 2.5 2.4 2.8 Corporate (4) 9.4 6.2 4.3 Total $ 42.9 $ 37.9 $ 32.0 Capital expenditures: United States $ 52.4 $ 28.6 $ 53.3 Canada 1.9 1.7 0.6 Total $ 54.3 $ 30.3 $ 53.9 _____________________________________________ (1) Consists primarily of external sales made by the Company’s consolidating warehouses, management service fee revenue, allowance for sales returns and certain other sales adjustments. (2) Consists primarily of expenses and other income, such as corporate incentives and salaries, LIFO expense, health care costs, insurance and workers’ compensation adjustments, elimination of overhead allocations and foreign exchange gains or losses. The change from 2016 to 2015 is primarily attributable to lower LIFO expenses and lower payroll costs in 2015. (3) Consists primarily of intercompany eliminations for interest. (4) Consists primarily of depreciation for the consolidation centers and amortization of intangible assets. The change from 2016 to 2015 is primarily attributable to the implementation of a new ERP system in February 2016 and amortization of intangible assets related to acquisition of Pine State Convenience. Identifiable assets by geographic area are as follows (in millions): December 31, December 31, December 31, 2016 2015 2014 Identifiable assets: United States $ 1,317.2 $ 981.4 $ 913.8 Canada 179.8 95.9 115.8 Total $ 1,497.0 $ 1,077.3 $ 1,029.6 |
Net Sales by Product Categories | The net sales for the Company’s product categories are as follows (in millions): Year Ended December 31, 2016 2015 2014 Product Category Net Sales Net Sales Net Sales Cigarettes $ 10,335.7 $ 7,528.5 $ 6,942.0 Food (1) 1,422.5 1,251.1 1,180.9 Fresh (1) 389.8 335.0 281.1 Candy 620.0 557.0 534.3 Other tobacco products 1,133.8 870.3 827.5 Health, beauty & general 446.7 368.8 361.0 Beverages 176.5 156.6 151.8 Equipment/other 4.4 2.1 1.5 Total food/non-food products $ 4,193.7 $ 3,540.9 $ 3,338.1 Total net sales $ 14,529.4 $ 11,069.4 $ 10,280.1 _____________________________________________ (1) In 2016, the Fresh category was separated from the Food category to better highlight the growth in the Fresh commodity. The 2015 and 2014 presentations have been realigned to reflect these changes. |
Quarterly Financial Data (Una42
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | The tables below provide the Company’s unaudited consolidated results of operations for each of the four quarters in 2016 and 2015 : Three Months Ended (in millions, except per share data) December 31, September 30, June 30, March 31, 2016 2016 2016 2016 Net sales — Cigarettes (1) $ 2,734.7 $ 2,855.3 $ 2,631.1 $ 2,114.6 Net sales — Food/non-food (1) 1,102.1 1,138.6 1,056.3 896.7 Net sales (1) 3,836.8 3,993.9 3,687.4 3,011.3 Cost of goods sold (1) 3,637.8 3,795.0 3,499.5 2,860.2 Gross profit 199.0 198.9 187.9 151.1 Warehousing and distribution expenses (2) 116.2 117.4 106.0 91.6 Selling, general and administrative expenses (3) 50.3 57.6 53.0 49.4 Amortization of intangible assets 1.5 1.7 1.2 0.9 Total operating expenses 168.0 176.7 160.2 141.9 Income from operations 31.0 22.2 27.7 9.2 Interest expense (2.0 ) (1.5 ) (1.0 ) (0.8 ) Interest income 0.1 — — 0.1 Foreign currency gains (losses), net 0.6 (0.5 ) (0.3 ) 0.7 Income before income taxes 29.7 20.2 26.4 9.2 Income tax provision (11.0 ) (6.7 ) (10.1 ) (3.5 ) Net income 18.7 13.5 16.3 5.7 Basic net income per common share (4) $ 0.41 $ 0.29 $ 0.35 $ 0.12 Diluted net income per common share (4) $ 0.41 $ 0.29 $ 0.35 $ 0.12 Shares used to compute basic net income per common share 46.2 46.3 46.3 46.4 Shares used to compute diluted net income per common share 46.4 46.5 46.5 46.6 Excise taxes (1) $ 815.4 $ 879.1 $ 729.5 $ 598.0 Cigarette inventory holding gains (5) 6.9 0.4 7.0 1.0 LIFO expense 3.2 3.7 2.9 3.4 Depreciation and amortization 11.7 11.4 10.2 9.6 Stock-based compensation 0.6 1.9 1.7 1.9 Capital expenditures 9.8 21.7 14.0 8.8 ____________________________________________ (1) Excise taxes are included as a component of net sales and cost of goods sold. (2) Warehousing and distribution expenses are not included as a component of the Company’s cost of goods sold. This presentation may differ from that of other registrants. (3) Selling, general and administrative (“SG&A”) expenses include acquisition related expenses and transaction costs of $2.2 million , related primarily to the addition of Pine State consisting of $0.3 million in Q4, $0.5 million in Q3, $0.8 million in Q2, and $0.6 million in Q1. SG&A expenses also include $1.3 million related to pension settlements, consisting of $0.1 million in Q4 and $1.2 million in Q3 and a $2.0 million gain, net of legal costs, related to the settlement of a legacy legal proceeding with Sonitrol Corporation in Q1. (4) Totals may not agree with full year amounts due to rounding. (5) Cigarette inventory holding gains represent income related to cigarette inventories on hand at the time cigarette manufacturers increase their prices. Such increases are reflected in customer pricing for all subsequent sales, including sales of inventory on hand at the time of the increase. Three Months Ended (in millions, except per share data) December 31, September 30, June 30, March 31, 2015 2015 2015 2015 Net sales — Cigarettes (1) $ 1,934.5 $ 2,049.6 $ 1,899.1 $ 1,645.3 Net sales — Food/non-food (1) 880.6 942.0 911.3 807.0 Net sales (1) 2,815.1 2,991.6 2,810.4 2,452.3 Cost of goods sold (1) 2,645.0 2,820.0 2,651.5 2,315.0 Gross profit (2) 170.1 171.6 158.9 137.3 Warehousing and distribution expenses (3) 91.7 92.8 88.6 79.5 Selling, general and administrative expenses (4) 48.4 52.8 47.5 47.3 Amortization of intangible assets 0.8 0.6 0.6 0.6 Total operating expenses 140.9 146.2 136.7 127.4 Income from operations 29.2 25.4 22.2 9.9 Interest expense (0.6 ) (0.6 ) (0.7 ) (0.6 ) Interest income 0.1 0.1 0.1 0.2 Foreign currency gains (losses), net (0.5 ) (0.7 ) (0.2 ) (0.4 ) Income before income taxes 28.2 24.2 21.4 9.1 Income tax provision (10.5 ) (9.1 ) (8.2 ) (3.6 ) Net income 17.7 15.1 13.2 5.5 Basic net income per common share (5) $ 0.39 $ 0.33 $ 0.29 $ 0.12 Diluted net income per common share (5) $ 0.38 $ 0.33 $ 0.29 $ 0.12 Shares used to compute basic net income per common share 46.4 46.2 46.2 46.4 Shares used to compute diluted net income per common share 46.8 46.6 46.6 46.6 Excise taxes (1) $ 566.7 $ 607.1 $ 554.2 $ 483.7 Cigarette inventory holding gains (6) 4.7 0.6 3.8 1.0 Cigarette tax stamp inventory holding gains (7) 0.7 8.3 — — LIFO expense (8) (7.3 ) 3.3 3.5 2.4 Depreciation and amortization 9.6 9.9 9.7 8.7 Stock-based compensation 2.0 2.7 2.1 1.9 Capital expenditures 5.6 10.3 11.7 2.7 ______________________________________________ (1) Excise taxes are included as a component of net sales and cost of goods sold. (2) Includes OTP tax refunds, net of tax assessments, of $0.8 million in Q2 and $0.9 million in Q1 2015 . (3) Warehousing and distribution expenses are not included as a component of the Company’s cost of goods sold. This presentation may differ from that of other registrants. (4) Selling, general and administrative ("SG&A") expenses include acquisition and integration expenses of $1.8 million related primarily to the addition of Karrys Bros., consisting of $0.3 million in Q4, $0.4 million in Q3, $0.8 million in Q2, and $0.3 million in Q1. SG&A expenses also include $1.6 million related to pension settlements, consisting of $0.7 million in Q4 and $ 0.9 million in Q3 . (5) Totals may not agree with full year amounts due to rounding. (6) Cigarette inventory holding gains represent income related to cigarette inventories on hand at the time cigarette manufacturers increase their prices. Such increases are reflected in customer pricing for all subsequent sales, including sales of inventory on hand at the time of the increase. (7) Cigarette tax stamp inventory holding gains relate to income earned on cigarette tax stamp inventory quantities on hand at the time taxing jurisdictions increase their excise taxes. (8) LIFO expense decrease in 2015 was due primarily to a decrease in the PPI for certain product categories we use to measure food/non-food LIFO expense as published by the Bureau of Labor Statistics. |
Summary of Company Information
Summary of Company Information (Details) customer_locations in Thousands | Dec. 31, 2016customer_locationsdistribution_centers |
Summary of Company Information [Line Items] | |
Number of customer locations | customer_locations | 43 |
Number of distribution centers | 30 |
Number of distribution facilities operated as a third party logistics provider | 2 |
United States | |
Summary of Company Information [Line Items] | |
Number of distribution centers | 25 |
Canada | |
Summary of Company Information [Line Items] | |
Number of distribution centers | 5 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies (Details) | May 25, 2016 | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)customerssupplier | Dec. 31, 2015USD ($)customers | Dec. 31, 2014USD ($) |
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Two-for-one stock split | 2 | ||||||||||||
Management service fee revenue as a percentage of total net sales, less than 1% | 1.00% | 1.00% | 1.00% | ||||||||||
Vendor rebates and promotional allowances | $ 221,200,000 | $ 191,400,000 | $ 162,800,000 | ||||||||||
Excise taxes | $ 815,400,000 | $ 879,100,000 | $ 729,500,000 | $ 598,000,000 | $ 566,700,000 | $ 607,100,000 | $ 554,200,000 | $ 483,700,000 | $ 3,000,000,000 | $ 2,200,000,000 | $ 2,100,000,000 | ||
Excise taxes as a percentage of net sales | 21.00% | 20.00% | 21.00% | ||||||||||
Excise taxes as a percentage of cost of goods sold | 22.00% | 21.00% | 22.00% | ||||||||||
Book overdrafts (Note 2) | $ 37,900,000 | $ 29,200,000 | $ 37,900,000 | $ 29,200,000 | |||||||||
Percentage of LIFO inventory | 82.00% | 88.00% | 82.00% | 88.00% | |||||||||
Impairment of long-lived assets, property and equipment | $ 0 | $ 0 | $ 0 | ||||||||||
Impairment of long-lived assets, definite-lived intangible assets | 0 | 0 | 0 | ||||||||||
Goodwill impairment | 0 | 0 | 0 | ||||||||||
Capitalized computer software, amount | 7,200,000 | 9,500,000 | $ 4,400,000 | ||||||||||
Unamortized debt issuance costs | $ 2,300,000 | $ 1,200,000 | 2,300,000 | 1,200,000 | |||||||||
Self insurance gross obligation, long-term | 26,800,000 | 26,600,000 | 26,800,000 | 26,600,000 | |||||||||
Self insurance gross obligation, short-term | 13,400,000 | 11,900,000 | 13,400,000 | 11,900,000 | |||||||||
Self insurance liabilities net of insurance recoverables, long-term | 13,900,000 | 12,200,000 | 13,900,000 | 12,200,000 | |||||||||
Self insurance liabilities net of insurance recoverables, short-term | 11,300,000 | $ 10,400,000 | $ 11,300,000 | $ 10,400,000 | |||||||||
Scenario, Forecast [Member] | Accounting Standards Update 2016-09 | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Effective Income Tax Rate Reconciliation, Share-based Compensation, Excess Tax Benefit, Amount | $ 1,600,000 | ||||||||||||
Customer Concentration Risk | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Customers accounted for 10% or more of accounts receivable, number | customers | 0 | 0 | |||||||||||
Supplier Concentration Risk | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Number of significant suppliers | supplier | 2 | ||||||||||||
Net sales | Cigarettes | Product Concentration Risk | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Concentration risk, percentage | 71.10% | 68.00% | 67.50% | ||||||||||
Product purchase | Philip Morris USA, Inc. | Supplier Concentration Risk | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Concentration risk, percentage | 35.00% | 29.00% | 28.00% | ||||||||||
Product purchase | R.J. Reynolds Tobacco Company | Supplier Concentration Risk | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Concentration risk, percentage | 23.00% | 17.00% | 14.00% | ||||||||||
Gross profit | Cigarettes | Product Concentration Risk | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Concentration risk, percentage | 29.90% | 28.30% | 27.10% | ||||||||||
Murphy USA [Member] | Net sales | Customer Concentration Risk | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Concentration risk, percentage | 12.00% | ||||||||||||
Couche-Tard | Net sales | Customer Concentration Risk | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Concentration risk, percentage | 11.40% | 14.20% | 14.50% | ||||||||||
Workers' Compensation, General and Auto Liabilities Program | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Self-insurance pre-claim limit, amount | 500,000 | $ 500,000 | |||||||||||
Health and Welfare Program | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Self-insurance pre-claim limit, amount | $ 250,000 | $ 250,000 | |||||||||||
Customer relationships | Minimum | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Intangible assets, useful life | 10 years | ||||||||||||
Customer relationships | Maximum | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Intangible assets, useful life | 15 years | ||||||||||||
Non-competition agreements | Minimum | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Intangible assets, useful life | 1 year | ||||||||||||
Non-competition agreements | Maximum | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Intangible assets, useful life | 5 years | ||||||||||||
Trade Names | Minimum | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Intangible assets, useful life | 1 year | ||||||||||||
Trade Names | Maximum | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Intangible assets, useful life | 2 years | ||||||||||||
Internally developed and other purchased software | Minimum | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Intangible assets, useful life | 3 years | ||||||||||||
Internally developed and other purchased software | Maximum | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Intangible assets, useful life | 7 years | ||||||||||||
Software | Minimum | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Intangible assets, useful life | 3 years | ||||||||||||
Software | Maximum | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Intangible assets, useful life | 7 years | ||||||||||||
Office furniture and equipment | Minimum | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Fixed assets useful lives | 3 years | ||||||||||||
Office furniture and equipment | Maximum | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Fixed assets useful lives | 10 years | ||||||||||||
Delivery equipment | Minimum | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Fixed assets useful lives | 4 years | ||||||||||||
Delivery equipment | Maximum | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Fixed assets useful lives | 10 years | ||||||||||||
Warehouse equipment | Minimum | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Fixed assets useful lives | 5 years | ||||||||||||
Warehouse equipment | Maximum | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Fixed assets useful lives | 15 years | ||||||||||||
Leasehold improvements | Minimum | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Fixed assets useful lives | 3 years | ||||||||||||
Leasehold improvements | Maximum | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Fixed assets useful lives | 25 years | ||||||||||||
Buildings | Minimum | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Fixed assets useful lives | 15 years | ||||||||||||
Buildings | Maximum | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Fixed assets useful lives | 25 years |
Acquisition - Narrative (Detail
Acquisition - Narrative (Details) CAD in Millions, $ in Millions | Jun. 06, 2016USD ($) | Feb. 23, 2015CAD | Feb. 23, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Business Acquisition [Line Items] | |||||
Acquisition related costs | $ 2.2 | $ 1.8 | |||
Pine State | |||||
Business Acquisition [Line Items] | |||||
Total consideration | $ 88.4 | ||||
Acquisition related costs | $ 2.2 | ||||
Karrys Bros | |||||
Business Acquisition [Line Items] | |||||
Total consideration | CAD 10 | $ 8 | |||
Acquisition related costs | $ 1.7 | ||||
MAINE | |||||
Business Acquisition [Line Items] | |||||
Operating lease, term of contract | 15 years | ||||
VERMONT | |||||
Business Acquisition [Line Items] | |||||
Operating lease, term of contract | 2 years |
Acquisition - Assets Acquired a
Acquisition - Assets Acquired and Liabilities Assumed (Details) CAD in Millions, $ in Millions | Jun. 06, 2016USD ($) | Feb. 23, 2015CAD | Feb. 23, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 36 | $ 22.9 | $ 22.9 | |||
Pine State | ||||||
Business Acquisition [Line Items] | ||||||
Accounts receivable | $ 35.5 | |||||
Inventories | 21.2 | |||||
Deposits and prepayments, and other | 0.9 | |||||
Property and equipment | 10.3 | |||||
Goodwill | 13.1 | |||||
Other intangible assets | 10.2 | |||||
Less: Accrued liabilities, and other | (2.8) | |||||
Total consideration | $ 88.4 | |||||
Karrys Bros | ||||||
Business Acquisition [Line Items] | ||||||
Total consideration | CAD 10 | $ 8 |
Acquisition Acquisition - Intan
Acquisition Acquisition - Intangible Assets Acquired (Details) - Pine State $ in Millions | Jun. 06, 2016USD ($) |
Business Acquisition [Line Items] | |
Intangible assets | $ 10.2 |
Customer relationships | |
Business Acquisition [Line Items] | |
Intangible assets | $ 7.2 |
Intangible assets, useful life | 12 years |
Non-competition agreements | |
Business Acquisition [Line Items] | |
Intangible assets | $ 1.9 |
Intangible assets, useful life | 5 years |
Trade Names | |
Business Acquisition [Line Items] | |
Intangible assets | $ 1 |
Intangible assets, useful life | 2 years |
Favorable lease terms | |
Business Acquisition [Line Items] | |
Intangible assets | $ 0.1 |
Intangible assets, useful life | 2 years |
Other Consolidated Balance Sh48
Other Consolidated Balance Sheet Accounts Detail (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance, beginning of year | $ 10.9 | $ 10.8 | $ 9.4 |
Net additions charged to operations | 2 | 1.3 | 2.2 |
Less: Write-offs and adjustments | (5.8) | (1.2) | (0.8) |
Balance, end of year | 7.1 | 10.9 | $ 10.8 |
Other Receivables, Net, Current [Abstract] | |||
Vendor receivables, net | 90.6 | 59 | |
Insurance recoverables, current | 2.1 | 1.5 | |
Other | 13.8 | 8.9 | |
Total other receivables, net | 106.5 | 69.4 | |
Deposits and Prepayments [Abstract] | |||
Vendor prepayments | 44.7 | 34.1 | |
Deposits | 8.5 | 4.7 | |
Prepaid taxes | 10.5 | 10.6 | |
Racking allowances, current | 5.7 | 6.4 | |
Other prepayments | 13.4 | 9.2 | |
Total deposits and prepayments | 82.8 | 65 | |
Other Assets, Noncurrent [Abstract] | |||
Insurance recoverables | 12.9 | 14.4 | |
Debt issuance costs | 1.6 | 0.9 | |
Insurance deposits | 3.4 | 2.9 | |
Racking allowances, net | 5 | 6.5 | |
Other assets | 3.7 | 3.4 | |
Total other non-current assets, net | 26.6 | 28.1 | |
Accrued Liabilities, Current [Abstract] | |||
Accrued payroll, retirement and other benefits | 35.7 | 29.9 | |
Claims liabilities, current | 13.4 | 11.9 | |
Accrued customer incentives payable | 40.1 | 20.3 | |
Indirect taxes | 6.2 | 7.3 | |
Vendor advances | 10.9 | 11 | |
Other accrued expenses | 25.5 | 26.5 | |
Total accrued liabilities | $ 131.8 | $ 106.9 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Inventory [Line Items] | |||||||||||
Inventories at FIFO, net of reserves | $ 727 | $ 524.6 | $ 727 | $ 524.6 | |||||||
Less: LIFO reserve | (130.4) | (117.2) | (130.4) | (117.2) | |||||||
Total inventories at LIFO, net of reserves | 596.6 | 407.4 | 596.6 | 407.4 | |||||||
LIFO expense | 3.2 | $ 3.7 | $ 2.9 | $ 3.4 | (7.3) | $ 3.3 | $ 3.5 | $ 2.4 | 13.2 | 1.9 | $ 16.3 |
LIFO decrement | 4.8 | 12.2 | |||||||||
Reduction in LIFO expense | 0.6 | 0.7 | |||||||||
United States | |||||||||||
Inventory [Line Items] | |||||||||||
Less: LIFO reserve | $ (130.4) | $ (117.2) | $ (130.4) | $ (117.2) |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 384 | $ 319.4 | |
Less: Accumulated depreciation and amortization | (189.3) | (159.9) | |
Total property and equipment, net | 194.7 | 159.5 | |
Depreciation and amortization expenses | 28.9 | 26 | $ 21.5 |
Delivery, warehouse and office equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 280.4 | 235.3 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 68.6 | 54.4 | |
Land and buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 32 | 28.9 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 3 | 0.8 | |
Equipment capital leases | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 13.5 | 13.4 | |
Warehouse equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 4.8 | $ 4.8 |
Goodwill and Other Intangible51
Goodwill and Other Intangible Assets, Net Goodwill Rollforward (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | |||||||||||
Goodwill, beginning of year | $ 22,900,000 | $ 22,900,000 | $ 22,900,000 | $ 22,900,000 | |||||||
Goodwill, end of year | $ 36,000,000 | $ 22,900,000 | 36,000,000 | 22,900,000 | $ 22,900,000 | ||||||
Goodwill impairment | 0 | 0 | 0 | ||||||||
Amortization of intangible assets | $ 1,500,000 | $ 1,700,000 | $ 1,200,000 | $ 900,000 | $ 800,000 | $ 600,000 | $ 600,000 | $ 600,000 | 5,300,000 | 2,600,000 | $ 2,600,000 |
Pine State | |||||||||||
Goodwill [Roll Forward] | |||||||||||
Pine State acquisition | $ 13,100,000 | $ 0 |
Goodwill and Other Intangible52
Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||
Gross Carrying Amount | $ 67.4 | $ 50.1 | $ 67.4 | $ 50.1 | |||||||
Accumulated Amortization | (25.9) | (20.6) | (25.9) | (20.6) | |||||||
Net Carrying Amount | 41.5 | 29.5 | 41.5 | 29.5 | |||||||
Amortization of intangible assets | 1.5 | $ 1.7 | $ 1.2 | $ 0.9 | 0.8 | $ 0.6 | $ 0.6 | $ 0.6 | 5.3 | 2.6 | $ 2.6 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||||||||||
2,017 | 6.5 | 6.5 | |||||||||
2,018 | 5.9 | 5.9 | |||||||||
2,019 | 5.6 | 5.6 | |||||||||
2,021 | 5.1 | 5.1 | |||||||||
2,020 | 5.5 | 5.5 | |||||||||
2022 and thereafter | 12.9 | 12.9 | |||||||||
Customer relationships | |||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||
Gross Carrying Amount | 28.3 | 21.1 | 28.3 | 21.1 | |||||||
Accumulated Amortization | (9.4) | (7.3) | (9.4) | (7.3) | |||||||
Net Carrying Amount | 18.9 | 13.8 | 18.9 | 13.8 | |||||||
Non-competition agreements | |||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||
Gross Carrying Amount | 5 | 3.2 | 5 | 3.2 | |||||||
Accumulated Amortization | (3.1) | (2.9) | (3.1) | (2.9) | |||||||
Net Carrying Amount | 1.9 | 0.3 | 1.9 | 0.3 | |||||||
Trade names | |||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||
Gross Carrying Amount | 1 | 0 | 1 | 0 | |||||||
Accumulated Amortization | (0.3) | 0 | (0.3) | 0 | |||||||
Net Carrying Amount | 0.7 | 0 | 0.7 | 0 | |||||||
Favorable lease terms | |||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||
Gross Carrying Amount | 0.1 | 0 | 0.1 | 0 | |||||||
Accumulated Amortization | 0 | 0 | 0 | 0 | |||||||
Net Carrying Amount | 0.1 | 0 | 0.1 | 0 | |||||||
Internally developed and other purchased software | |||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||
Gross Carrying Amount | 33 | 25.8 | 33 | 25.8 | |||||||
Accumulated Amortization | (13.1) | (10.4) | (13.1) | (10.4) | |||||||
Net Carrying Amount | $ 19.9 | $ 15.4 | $ 19.9 | $ 15.4 |
Long-term Debt (Details)
Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Amounts borrowed | $ 347.7 | $ 60.4 |
Outstanding letters of credit | 17.4 | 18.5 |
Amounts available to borrow | 224.8 | 123.9 |
Amounts borrowed (Credit Facility) | ||
Debt Instrument [Line Items] | ||
Amounts borrowed | 336 | 47 |
Obligations under capital leases (Note 9) | ||
Debt Instrument [Line Items] | ||
Amounts borrowed | $ 11.7 | $ 13.4 |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Nov. 04, 2016 | May 16, 2016 | |
Debt Instrument [Line Items] | |||||
Amortization of debt issuance costs | $ 500,000 | $ 300,000 | $ 300,000 | ||
Unamortized debt issuance costs | 2,300,000 | 1,200,000 | |||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility, average borrowings | 184,400,000 | 39,600,000 | |||
Revolving credit facility, minimum amount borrowed | 0 | 0 | |||
Revolving credit facility, maximum amount borrowed | $ 428,000,000 | $ 120,900,000 | |||
Revolving credit facility, weighted-average interest rate | 1.70% | 1.60% | |||
Total unused facility fees and letter of credit participation fees | $ 700,000 | $ 600,000 | $ 700,000 | ||
Ninth Amendment | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility maximum borrowing capacity | $ 600,000,000 | ||||
Revolving credit facility, potentially additional borrowing capacity | 100,000,000 | ||||
Seventh Amendment | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility maximum borrowing capacity | $ 300,000,000 | ||||
Eighth Amendment | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility maximum borrowing capacity | $ 450,000,000 | 450,000,000 | |||
Fee amount | $ 1,300,000 |
Commitments and Contingencies55
Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Purchase commitment, amount | $ 47.8 | $ 43.1 | |
Rental expenses for operating and month-to-month leases | 66.8 | 57.9 | $ 50.4 |
Capital lease obligations | 13.6 | 15.6 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,017 | 54.3 | ||
2,018 | 51.9 | ||
2,019 | 47.4 | ||
2,020 | 41.9 | ||
2,021 | 33.2 | ||
2022 and thereafter | 121.3 | ||
Total | 350 | ||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,017 | 2.6 | ||
2,018 | 2.4 | ||
2,019 | 2.2 | ||
2,020 | 1.9 | ||
2,021 | 1.3 | ||
2022 and thereafter | 6.4 | ||
Total | 16.8 | ||
Less: Interest | (3.2) | ||
Present value of future minimum lease payments | 13.6 | ||
Less: current portion | (1.9) | ||
Non-current portion | 11.7 | ||
Outstanding letters of credit | $ 17.4 | $ 18.5 | |
Majority of standby letters of credit maturity period | 1 year |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provisions (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||||||||||
Federal | $ 21.4 | $ 19.4 | $ 22 | ||||||||
State | 3.1 | 3.2 | 3.1 | ||||||||
Total current tax provision | 24.5 | 22.6 | 25.1 | ||||||||
Deferred: | |||||||||||
Federal | 6.7 | 7.8 | (0.6) | ||||||||
State | 0.8 | 1.1 | (0.5) | ||||||||
Foreign | (0.7) | (0.1) | (0.3) | ||||||||
Total deferred tax provision (benefit) | 6.8 | 8.8 | (1.4) | ||||||||
Income tax provision | $ 11 | $ 6.7 | $ 10.1 | $ 3.5 | $ 10.5 | $ 9.1 | $ 8.2 | $ 3.6 | $ 31.3 | $ 31.4 | $ 23.7 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||||||||||
Federal income tax provision at the statutory rate | $ 29.9 | $ 29 | $ 23.2 | ||||||||
State income taxes, net of federal benefit | 2.9 | 2.9 | 2.3 | ||||||||
Decrease in unrecognized tax benefits (inclusive of related interest and penalty) | (0.3) | 0 | (0.9) | ||||||||
Effect of foreign operations | (0.7) | (0.1) | (0.3) | ||||||||
Change in valuation allowance | 0 | (0.1) | 0 | ||||||||
Tax credits and other, net | (0.5) | (0.3) | (0.6) | ||||||||
Income tax provision | $ 11 | $ 6.7 | $ 10.1 | $ 3.5 | $ 10.5 | $ 9.1 | $ 8.2 | $ 3.6 | $ 31.3 | $ 31.4 | $ 23.7 |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||||||||||
Federal income tax provision at the statutory rate | 35.00% | 35.00% | 35.00% | ||||||||
State income taxes, net of federal benefit | 3.40% | 3.50% | 3.50% | ||||||||
Decrease in unrecognized tax benefits (inclusive of related interest and penalty) | (0.40%) | 0.00% | (1.40%) | ||||||||
Effect of foreign operations | (0.80%) | (0.10%) | (0.50%) | ||||||||
Non-deductible acquisition costs | 0.00% | (0.10%) | 0.00% | ||||||||
Tax credits and other, net | (0.60%) | (0.40%) | (0.90%) | ||||||||
Effective tax rate | 36.60% | 37.90% | 35.70% | ||||||||
Income tax benefit related to expiration of statute of limitations for uncertain tax positions and adjustment to prior year's estimates | $ 1.5 | $ 0.3 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Employee benefits, including post-retirement benefits | $ 15.4 | $ 15.2 |
Trade and other receivables | 2.9 | 4.1 |
Goodwill and intangibles | 0.2 | 2 |
Self-insurance reserves | 1.7 | 1.5 |
Other | 6.1 | 4 |
Subtotal | 26.3 | 26.8 |
Less: valuation allowance | 0 | 0 |
Net deferred tax assets | 26.3 | 26.8 |
Deferred tax liabilities: | ||
Inventories | 7 | 9 |
Property and equipment | 36.2 | 27.2 |
Goodwill and intangibles | 5.6 | 6 |
Other | 1.8 | 1.6 |
Total deferred tax liabilities | 50.6 | 43.8 |
Total net deferred tax liabilities | (24.3) | (17) |
Net current deferred tax assets | 4.6 | 1.6 |
Net non-current deferred tax liabilities | $ (28.9) | $ (18.6) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 400,000 | $ 400,000 | $ 600,000 |
Lapse of statute of limitations | (200,000) | 0 | (200,000) |
Balance at end of year | 200,000 | 400,000 | 400,000 |
Total gross amount of unrecognized tax benefits that would impact effective tax rate | 200,000 | 400,000 | |
The expiration of the statute of limitations for certain tax positions in future years and expected settlement of certain tax audit that could impact unrecognized tax benefits | 200,000 | ||
Income taxes benefit related to recovery of interest associated with expiration of statute of limitations for certain unrecognized tax position | 100,000 | 0 | $ 200,000 |
Estimated interest and penalties related to unrecognized tax benefits | $ 100,000 | $ 300,000 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) $ in Millions | Sep. 14, 2016USD ($) | Dec. 31, 2016USD ($)entrant | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of new entrants since plans were frozen | entrant | 0 | |||
Multi-employer defined benefit plan, contributions | $ 0.5 | $ 0.4 | $ 0.4 | |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlement of accumulated benefits | 2.7 | 2.2 | ||
Increase in funded status | 0.4 | |||
Funded status at end of year | (4.3) | (4.7) | ||
Actual return on plan assets | 1.4 | (1.8) | ||
Employer contributions | 1.9 | 0 | ||
Interest cost | 1.2 | 1.7 | 1.8 | |
Actuarial loss | 1.7 | (2) | ||
Increase in projected benefit obligation | 2 | |||
Favorable demographic experience | 0.3 | |||
Settlement charge | $ (1.3) | (1.6) | 0 | |
Average future life expectancy | 20 years 5 months 2 days | |||
Group annuity contract discontinuance | $ 0 | 1.3 | ||
Other Post-retirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlement of accumulated benefits | 0 | 0 | ||
Funded status at end of year | (2.6) | (3) | ||
Actual return on plan assets | 0 | 0 | ||
Employer contributions | 0.1 | 0.2 | ||
Interest cost | 0.2 | 0.1 | 0.1 | |
Actuarial loss | (0.5) | 0.1 | ||
Settlement charge | $ 0 | 0 | $ 0 | |
Remaining service life | 4 years 7 months 2 days | |||
Group annuity contract discontinuance | $ 0 | $ 0 | ||
Estimated future employer contributions in next fiscal year | $ 0.2 | |||
Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Unrecognized actuarial losses in accumulated other comprehensive income | $ 17 | |||
Settlement of accumulated benefits | 4 | |||
Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Unrecognized actuarial losses in accumulated other comprehensive income | 19 | |||
Settlement of accumulated benefits | $ 6 |
Employee Benefit Plans - Change
Employee Benefit Plans - Change in Benefit Obligation and Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Amounts recognized in the balance sheet consist of: | |||
Non-current liabilities | $ (2.4) | $ (7.5) | |
Pension Benefits | |||
Change in Benefit Obligation: | |||
Obligation at beginning of year | 37 | 43.6 | |
Interest cost | 1.2 | 1.7 | $ 1.8 |
Actuarial loss (gain) | 1.7 | (2) | |
Benefit payments | (2.4) | (2.8) | |
Group annuity contract discontinuance | 0 | (1.3) | |
Settlement of accumulated benefits | (2.7) | (2.2) | |
Benefit obligation at end of year | 34.8 | 37 | 43.6 |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 32.3 | 40.4 | |
Actual return on plan assets | 1.4 | (1.8) | |
Employer contributions | 1.9 | 0 | |
Benefit payments | (2.4) | (2.8) | |
Group annuity contract discontinuance | 0 | (1.3) | |
Settlement of accumulated benefits | (2.7) | (2.2) | |
Fair value of plan assets at end of year | 30.5 | 32.3 | 40.4 |
Defined Benefit Plan, Funded Status of Plan [Abstract] | |||
Funded status at end of year | (4.3) | (4.7) | |
Amounts recognized in the balance sheet consist of: | |||
Current liabilities | (4.3) | 0 | |
Non-current liabilities | 0 | (4.7) | |
Total liabilities | (4.3) | (4.7) | |
Amounts recognized in AOCI consist of: | |||
Net actuarial loss (gain) | 17.7 | 17.5 | |
Total | 17.7 | 17.5 | |
Accumulated benefit obligation | 34.8 | 37 | |
Settlement charge | 1.3 | 1.6 | 0 |
Other Post-retirement Benefits | |||
Change in Benefit Obligation: | |||
Obligation at beginning of year | 3 | 3 | |
Interest cost | 0.2 | 0.1 | 0.1 |
Actuarial loss (gain) | (0.5) | 0.1 | |
Benefit payments | (0.1) | (0.2) | |
Group annuity contract discontinuance | 0 | 0 | |
Settlement of accumulated benefits | 0 | 0 | |
Benefit obligation at end of year | 2.6 | 3 | 3 |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 0.1 | 0.2 | |
Benefit payments | (0.1) | (0.2) | |
Group annuity contract discontinuance | 0 | 0 | |
Settlement of accumulated benefits | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | 0 |
Defined Benefit Plan, Funded Status of Plan [Abstract] | |||
Funded status at end of year | (2.6) | (3) | |
Amounts recognized in the balance sheet consist of: | |||
Current liabilities | (0.2) | (0.2) | |
Non-current liabilities | (2.4) | (2.8) | |
Total liabilities | (2.6) | (3) | |
Amounts recognized in AOCI consist of: | |||
Net actuarial loss (gain) | (0.7) | (0.2) | |
Total | (0.7) | (0.2) | |
Settlement charge | $ 0 | $ 0 | $ 0 |
Employee Benefit Plans - Net Pe
Employee Benefit Plans - Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: | |||
Net actuarial loss (gain) | $ 1.6 | $ 2.1 | $ 4.8 |
Settlement charge | (1.3) | (1.6) | 0 |
Amortization of actuarial (loss) gain | (0.6) | (0.6) | (0.3) |
Total net loss (gain) recognized in other comprehensive income | (0.3) | (0.1) | 4.5 |
Pension Benefits | |||
Net Periodic Benefit Cost: | |||
Interest cost | 1.2 | 1.7 | 1.8 |
Expected return on plan assets | (1.8) | (2.1) | (2.5) |
Amortization of net actuarial loss (gain) | 0.6 | 0.6 | 0.4 |
Settlement charge | 1.3 | 1.6 | 0 |
Net periodic benefit cost (income) | 1.3 | 1.8 | (0.3) |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: | |||
Net actuarial loss (gain) | 2.1 | 1.9 | 5.2 |
Settlement charge | (1.3) | (1.6) | 0 |
Amortization of actuarial (loss) gain | (0.6) | (0.6) | (0.4) |
Total net loss (gain) recognized in other comprehensive income | 0.2 | (0.3) | 4.8 |
Other Post-retirement Benefits | |||
Net Periodic Benefit Cost: | |||
Interest cost | 0.2 | 0.1 | 0.1 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of net actuarial loss (gain) | 0 | 0 | (0.1) |
Settlement charge | 0 | 0 | 0 |
Net periodic benefit cost (income) | 0.2 | 0.1 | 0 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: | |||
Net actuarial loss (gain) | (0.5) | 0.2 | (0.4) |
Settlement charge | 0 | 0 | 0 |
Amortization of actuarial (loss) gain | 0 | 0 | 0.1 |
Total net loss (gain) recognized in other comprehensive income | $ (0.5) | $ 0.2 | $ (0.3) |
Employee Benefit Plans - Assump
Employee Benefit Plans - Assumptions Used (Details) | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 30, 2016 | Sep. 30, 2016 | |
Pension Benefits | |||||
Benefit Obligations: | |||||
Discount rate | 3.30% | 4.32% | 4.00% | 3.57% | 4.32% |
Expected return on assets | 3.25% | 6.00% | 5.50% | ||
Net Periodic Benefit Costs: | |||||
Discount rate | 4.13% | 4.05% | 4.60% | ||
Expected return on assets | 3.57% | 5.95% | 6.55% | ||
Other Post-retirement Benefits | |||||
Benefit Obligations: | |||||
Discount rate | 3.98% | 4.32% | 3.99% | ||
Net Periodic Benefit Costs: | |||||
Discount rate | 4.29% | 3.99% | 4.60% | ||
Expected return on assets | 3.47% |
Employee Benefit Plans - Health
Employee Benefit Plans - Health Care Cost Trend Rates (Details) - Other Post-retirement Benefits | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Ultimate year trend rate | 4.50% | 5.00% |
Age under 65 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assumed current trend rate for next year for participants under 65 | 6.62% | 6.80% |
Age 65 and over | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assumed current trend rate for next year for participants 65 and over | 7.73% | 7.85% |
Employee Benefit Plans - Effect
Employee Benefit Plans - Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates (Details) - Other Post-retirement Benefits $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract] | |
Effect of one percentage point increase on total of service and interest cost components of net periodic post-retirement health care benefit cost | $ 0 |
Effect of one percentage point decrease on total of service and interest cost components of net periodic post-retirement health care benefit cost | 0 |
Effect of one percentage point increase on the health care component of the accumulated post-retirement benefit obligation | 0.2 |
Effect of one percentage point decrease on the health care component of the accumulated post-retirement benefit obligation | $ 0.3 |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value of Plan Assets (Details) - Pension Benefits - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 30.5 | $ 32.3 | $ 40.4 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 28.9 | 31.3 | |
Significant Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1.6 | 1 | |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1.6 | 1 | |
Cash and cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash and cash equivalents | Significant Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1.6 | 1 | |
Cash and cash equivalents | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Group trust | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 28.9 | 31.3 | |
Group trust | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 28.9 | 31.3 | |
Group trust | Significant Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Group trust | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
Employee Benefit Plans - Estima
Employee Benefit Plans - Estimated Future Contributions and Benefit Payments (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Pension Benefits | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2,017 | $ 35.8 |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
2021 through 2025 | 0 |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | |
Expected amortization of net actuarial loss | 0.7 |
Other Post-retirement Benefits | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2,017 | 0.2 |
2,018 | 0.2 |
2,019 | 0.2 |
2,020 | 0.2 |
2,021 | 0.2 |
2021 through 2025 | 0.9 |
Estimated future employer contributions in next fiscal year | 0.2 |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | |
Expected amortization of net actuarial loss | $ (0.1) |
Employee Benefit Plans - Saving
Employee Benefit Plans - Savings Plans (Details) | Jan. 01, 2016CAD | Dec. 31, 2016CAD | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Defined Contribution Plan Disclosure [Line Items] | |||||
Multi-employer defined benefit plan, contributions | $ 500,000 | $ 400,000 | $ 400,000 | ||
Maximum annual contribution | CAD 26,010 | CAD 25,370 | 18,000 | ||
Additional annual contribution | 6,000 | ||||
Employer discretionary contribution amount | $ 3,900,000 | $ 3,100,000 | $ 3,000,000 | ||
Minimum | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Maximum annual contribution employees could elect to contribute, percent | 1.00% | 1.00% | |||
Maximum | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Maximum annual contribution employees could elect to contribute, percent | 75.00% | 75.00% | |||
United States | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Employer matching contribution, percent of match | 50.00% | 50.00% | |||
Maximum annual contribution employees could elect to contribute, percent | 3.00% | 3.00% | |||
Percentage of employees' base salary for which Company contributes a matching contribution | 6.00% | 6.00% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||
Net income | $ 18.7 | $ 13.5 | $ 16.3 | $ 5.7 | $ 17.7 | $ 15.1 | $ 13.2 | $ 5.5 | $ 54.2 | [1] | $ 51.5 | [1] | $ 42.7 | [1] |
Weighted-average shares outstanding, basic EPS | 46.2 | 46.3 | 46.3 | 46.4 | 46.4 | 46.2 | 46.2 | 46.4 | 46.3 | 46.2 | 46.2 | |||
Net income per common share, basic EPS (in dollars per share) | $ 0.41 | $ 0.29 | $ 0.35 | $ 0.12 | $ 0.39 | $ 0.33 | $ 0.29 | $ 0.12 | $ 1.17 | $ 1.12 | $ 0.93 | |||
Effect of dilutive common share equivalents: [Abstract] | ||||||||||||||
Net income, diluted | $ 54.2 | $ 51.5 | $ 42.7 | |||||||||||
Weighted-average shares outstanding, diluted EPS | 46.4 | 46.5 | 46.5 | 46.6 | 46.8 | 46.6 | 46.6 | 46.6 | 46.5 | 46.6 | 46.6 | |||
Net income per common share, diluted EPS (in dollars per share) | $ 0.41 | $ 0.29 | $ 0.35 | $ 0.12 | $ 0.38 | $ 0.33 | $ 0.29 | $ 0.12 | $ 1.17 | $ 1.11 | $ 0.92 | |||
Restricted stock units (RSUs) | ||||||||||||||
Effect of dilutive common share equivalents: [Abstract] | ||||||||||||||
Incremental common shares attributable to share-based payment arrangements | 0.1 | 0.2 | 0.2 | |||||||||||
Net income per common share, share-based payment arrangements (in dollars per share) | $ 0 | $ (0.01) | $ (0.01) | |||||||||||
Stock options | ||||||||||||||
Effect of dilutive common share equivalents: [Abstract] | ||||||||||||||
Incremental common shares attributable to share-based payment arrangements | 0 | 0 | 0.2 | |||||||||||
Net income per common share, share-based payment arrangements (in dollars per share) | $ 0 | $ 0 | $ 0 | |||||||||||
Performance shares | ||||||||||||||
Effect of dilutive common share equivalents: [Abstract] | ||||||||||||||
Incremental common shares attributable to share-based payment arrangements | 0.1 | 0.2 | 0 | |||||||||||
Net income per common share, share-based payment arrangements (in dollars per share) | $ 0 | $ 0 | $ 0 | |||||||||||
[1] | Amounts have been rounded for presentation purposes and might differ from unrounded results. |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities | 0 | 0 | 0 |
Stock Incentive Plans - Narrati
Stock Incentive Plans - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016USD ($)shares | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)Participantshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | May 20, 2014shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period | 3 years | |||||||||||
Total intrinsic value of stock options exercised in period | $ 1,300,000 | $ 1,800,000 | $ 5,200,000 | |||||||||
Total aggregate fair value of options vested in period | $ 0 | $ 0 | $ 300,000 | |||||||||
Stock options granted (in shares) | shares | 0 | 0 | 0 | |||||||||
Stock-based compensation cost | $ 600,000 | $ 1,900,000 | $ 1,700,000 | $ 1,900,000 | $ 2,000,000 | $ 2,700,000 | $ 2,100,000 | $ 1,900,000 | $ 6,100,000 | $ 8,700,000 | $ 6,100,000 | |
Stock-based compensation expense | $ 6,100,000 | 8,700,000 | 6,100,000 | |||||||||
Forfeiture rate since inception of plans | 4.00% | |||||||||||
Number of plan participants since inception of plans | Participant | 94 | |||||||||||
Total unrecognized compensation cost related to non-vested share-based compensation arrangements | $ 3,700,000 | $ 3,700,000 | ||||||||||
Expected period to recognize total unrecognized compensation cost related to non-vested share-based compensation arrangements | 1 year 2 months 2 days | |||||||||||
Options | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award expiration period | 7 years | |||||||||||
Restricted stock units (RSUs) | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Total intrinsic value of equity instruments other than options exercised in period | $ 9,300,000 | 5,800,000 | 5,300,000 | |||||||||
Total aggregate fair value of equity instruments other than options vested in period | 9,300,000 | 5,800,000 | 5,400,000 | |||||||||
Performance shares | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Total intrinsic value of equity instruments other than options exercised in period | 5,100,000 | 2,700,000 | 1,100,000 | |||||||||
Total aggregate fair value of equity instruments other than options vested in period | $ 5,100,000 | $ 2,700,000 | $ 1,100,000 | |||||||||
2004 LTIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares cliff vest percentage | 33.30% | |||||||||||
2005 LTIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares cliff vest percentage | 33.30% | |||||||||||
2007 LTIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares cliff vest percentage | 33.30% | |||||||||||
Remaining period following first vesting commencement date | 2 years | |||||||||||
2007 LTIP | Options | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock options granted (in shares) | shares | 0 | |||||||||||
2010 LTIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares authorized (in shares) | shares | 1,800,000 | |||||||||||
Shares available for issuance (in shares) | shares | 2,684,821 | 2,684,821 | ||||||||||
Annual award limits to any one participant (in shares) | shares | 200,000 | |||||||||||
2010 LTIP | Options | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock options granted (in shares) | shares | 0 | |||||||||||
2010 LTIP | Restricted Stock Units and Performance Shares [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period | 3 years |
Stock Incentive Plans - Securit
Stock Incentive Plans - Securities To Be Issued and Remaining Available For Future Issuance (Details) | Dec. 31, 2016$ / sharesshares |
2007 LTIP | Stock Options, Restricted Stock Units and Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of securities to be issued upon exercise of outstanding options and vesting of RSUs | 1,624 |
Weighted-average exercise price of outstanding options and vesting of RSUs (in dollars per share) | $ / shares | $ 0.01 |
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column 1) | 0 |
2010 LTIP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column 1) | 2,684,821 |
2010 LTIP | Stock Options, Restricted Stock Units and Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of securities to be issued upon exercise of outstanding options and vesting of RSUs | 399,568 |
Weighted-average exercise price of outstanding options and vesting of RSUs (in dollars per share) | $ / shares | $ 0.01 |
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column 1) | 2,684,821 |
Stock Incentive Plans - Share-B
Stock Incentive Plans - Share-Based Compensation Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Granted, number (in shares) | 0 | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Total Options and Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Total outstanding, number (in shares) | 729,884 | ||
Total granted, number (in shares) | 280,653 | ||
Total vested/exercised, number (in shares) | (402,337) | ||
Total canceled, number (in shares) | (207,008) | ||
Total outstanding, number (in shares) | 401,192 | 729,884 | |
Total exercisable, number (in shares) | 1,624 | ||
Restricted stock units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Granted, price (in dollars per share) | $ 38.21 | $ 32.47 | $ 18.57 |
Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Granted, price (in dollars per share) | $ 32.60 | $ 18.40 | |
2005 LTIP | Restricted stock units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Outstanding, number (in shares) | 12,208 | ||
Granted, number (in shares) | 0 | ||
Vested, number (in shares) | (12,208) | ||
Canceled, number (in shares) | 0 | ||
Outstanding, number (in shares) | 0 | 12,208 | |
Exercisable, number (in shares) | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Outstanding, price (in dollars per share) | $ 0.01 | ||
Granted, price (in dollars per share) | 0 | ||
Vested, price (in dollars per share) | 0.01 | ||
Canceled, price (in dollars per share) | 0 | ||
Outstanding, price (in dollars per share) | 0 | $ 0.01 | |
Exercisable, price (in dollars per share) | $ 0 | ||
2007 LTIP | Options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding, number (in shares) | 21,206 | ||
Granted, number (in shares) | 0 | ||
Exercised, number (in shares) | (12,370) | ||
Canceled, number (in shares) | (8,836) | ||
Outstanding, number (in shares) | 0 | 21,206 | |
Exercisable, number (in shares) | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Outstanding, price (in dollars per share) | $ 4.80 | ||
Granted, price (in dollars per share) | 0 | ||
Exercised, price (in dollars per share) | 4.80 | ||
Canceled, price (in dollars per share) | 4.80 | ||
Outstanding, price (in dollars per share) | 0 | $ 4.80 | |
Exercisable, price | $ 0 | ||
2007 LTIP | Restricted stock units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Outstanding, number (in shares) | 1,624 | ||
Granted, number (in shares) | 0 | ||
Vested, number (in shares) | 0 | ||
Canceled, number (in shares) | 0 | ||
Outstanding, number (in shares) | 1,624 | 1,624 | |
Exercisable, number (in shares) | 1,624 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Outstanding, price (in dollars per share) | $ 0.01 | ||
Granted, price (in dollars per share) | 0 | ||
Vested, price (in dollars per share) | 0 | ||
Canceled, price (in dollars per share) | 0 | ||
Outstanding, price (in dollars per share) | 0.01 | $ 0.01 | |
Exercisable, price (in dollars per share) | $ 0.01 | ||
2010 LTIP | Options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding, number (in shares) | 30,000 | ||
Granted, number (in shares) | 0 | ||
Exercised, number (in shares) | (30,000) | ||
Canceled, number (in shares) | 0 | ||
Outstanding, number (in shares) | 0 | 30,000 | |
Exercisable, number (in shares) | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Outstanding, price (in dollars per share) | $ 8.20 | ||
Granted, price (in dollars per share) | 0 | ||
Exercised, price (in dollars per share) | 8.20 | ||
Canceled, price (in dollars per share) | 0 | ||
Outstanding, price (in dollars per share) | 0 | $ 8.20 | |
Exercisable, price | $ 0 | ||
2010 LTIP | Restricted stock units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Outstanding, number (in shares) | 328,578 | ||
Granted, number (in shares) | 124,077 | ||
Vested, number (in shares) | (219,237) | ||
Canceled, number (in shares) | (2,560) | ||
Outstanding, number (in shares) | 230,858 | 328,578 | |
Exercisable, number (in shares) | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Outstanding, price (in dollars per share) | $ 0.01 | ||
Granted, price (in dollars per share) | 0.01 | ||
Vested, price (in dollars per share) | 0.01 | ||
Canceled, price (in dollars per share) | 0.01 | ||
Outstanding, price (in dollars per share) | 0.01 | $ 0.01 | |
Exercisable, price (in dollars per share) | $ 0 | ||
2010 LTIP | Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Outstanding, number (in shares) | 336,268 | ||
Granted, number (in shares) | 156,576 | ||
Vested, number (in shares) | (128,522) | ||
Canceled, number (in shares) | (195,612) | ||
Outstanding, number (in shares) | 168,710 | 336,268 | |
Exercisable, number (in shares) | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Outstanding, price (in dollars per share) | $ 0.01 | ||
Granted, price (in dollars per share) | 0.01 | ||
Vested, price (in dollars per share) | 0.01 | ||
Canceled, price (in dollars per share) | 0.01 | ||
Outstanding, price (in dollars per share) | 0.01 | $ 0.01 | |
Exercisable, price (in dollars per share) | $ 0 |
Stock Incentive Plans - Secur74
Stock Incentive Plans - Securities Vested and Expected to Vest (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total Options and Non-Options Equity Instruments, Vested, Outstanding, Number (in shares) | shares | 1,624 |
Total Options and Non-Options Equity Instruments, Expected to Vest, Outstanding, Number (in shares) | shares | 389,986 |
Total Options and Non-Options Equity Instruments, Vested, Outstanding, Aggregate Intrinsic Value | $ | $ 70 |
Total Options and Non-Options Equity Instruments, Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ | $ 16,793 |
Common stock, price per share (in dollars per share) | $ / shares | $ 43.07 |
2007 LTIP | Restricted stock units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Equity Instruments Other than Options, Vested, Outstanding, Number (in shares) | shares | 1,624 |
Equity Instruments Other than Options, Expected to Vest, Outstanding, Number (in shares) | shares | 0 |
Equity Instruments Other than Options, Vested, Outstanding, Aggregate Intrinsic Value | $ | $ 70 |
Equity Instruments Other than Options, Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ | $ 0 |
2010 LTIP | Restricted stock units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Equity Instruments Other than Options, Vested, Outstanding, Number (in shares) | shares | 0 |
Equity Instruments Other than Options, Expected to Vest, Outstanding, Number (in shares) | shares | 222,963 |
Equity Instruments Other than Options, Vested, Outstanding, Aggregate Intrinsic Value | $ | $ 0 |
Equity Instruments Other than Options, Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ | $ 9,601 |
2010 LTIP | Performance shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Equity Instruments Other than Options, Vested, Outstanding, Number (in shares) | shares | 0 |
Equity Instruments Other than Options, Expected to Vest, Outstanding, Number (in shares) | shares | 167,023 |
Equity Instruments Other than Options, Vested, Outstanding, Aggregate Intrinsic Value | $ | $ 0 |
Equity Instruments Other than Options, Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ | $ 7,192 |
Stock Incentive Plans - Fair Va
Stock Incentive Plans - Fair Value Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restricted stock units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average fair value per share of grants - Non-options (in dollars per share) | $ 38.21 | $ 32.47 | $ 18.57 |
Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average fair value per share of grants - Non-options (in dollars per share) | $ 32.60 | $ 18.40 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends (Details) $ / shares in Units, $ in Millions | Feb. 28, 2017$ / shares | Dec. 15, 2016USD ($) | Nov. 04, 2016$ / shares | Sep. 15, 2016USD ($) | Aug. 08, 2016$ / shares | Jun. 15, 2016USD ($) | May 25, 2016 | May 09, 2016$ / shares | Mar. 28, 2016USD ($) | Feb. 24, 2016$ / shares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / shares |
Class of Stock [Line Items] | |||||||||||||
Two-for-one stock split | 2 | ||||||||||||
Dividends declared (in dollars per share) | $ 0.09 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.33 | $ 0.285 | $ 0.23 | ||||||
Dividends paid (in dollars per share) | $ 0.33 | $ 0.29 | $ 0.23 | ||||||||||
Cash payment amount | $ | $ 4.2 | $ 3.8 | $ 3.7 | $ 3.8 | $ 15.5 | $ 12.8 | $ 10.7 | ||||||
Subsequent Event | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Dividends declared (in dollars per share) | $ 0.09 |
Stockholders' Equity - Repurcha
Stockholders' Equity - Repurchase Activities (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
May 31, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | May 19, 2015 | May 18, 2015 | |
Equity [Abstract] | |||||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | 50,000,000 | |
Authorized increase to stock repurchase plan | $ 30,000,000 | ||||
Common stock available for future share repurchases, amount | $ 2,300,000 | $ 2,600,000 | $ 11,500,000 | ||
Number of shares repurchased (in shares) | 237,869 | 302,366 | |||
Average price per share (in dollars per share) | $ 37.76 | $ 30.35 | |||
Total repurchase costs (in millions) | $ 8,900,000 | $ 9,200,000 |
Other Comprehensive Income (L78
Other Comprehensive Income (Loss) - Components of OCI (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Equity [Abstract] | ||||
Net actuarial gain (loss) during year, before tax | $ (1.6) | $ (2.1) | $ (4.8) | |
Net actuarial gain (loss) during year, tax effect | 0.6 | 0.9 | 1.7 | |
Net actuarial gain (loss) during year, net of tax | (1) | (1.2) | (3.1) | |
Settlement charge | 1.3 | 1.6 | 0 | |
Settlement charge, tax effect | (0.5) | (0.6) | 0 | |
Settlement charge, net of tax | 0.8 | 1 | 0 | |
Amortization of net actuarial loss, before tax | 0.6 | 0.6 | 0.3 | |
Amortization of net actuarial loss, tax effect | (0.2) | (0.2) | (0.1) | |
Amortization of net actuarial loss, net of tax | 0.4 | 0.4 | 0.2 | |
Net (loss) gain during the year, before tax | 0.3 | 0.1 | (4.5) | |
Net (loss) gain during the year, tax effect | (0.1) | 0.1 | 1.6 | |
Net (loss) gain during the year, net of tax | 0.2 | 0.2 | (2.9) | |
Foreign currency translation adjustment gain (loss), before tax | 1.9 | (4.9) | (3) | |
Foreign currency translation adjustment gain (loss), tax effect | 0 | 0 | 0 | |
Foreign currency translation adjustment gain (loss), net of tax | 1.9 | (4.9) | (3) | |
Other comprehensive (loss) income, before tax | 2.2 | (4.8) | (7.5) | |
Other comprehensive (loss) income, tax effect | (0.1) | 0.1 | 1.6 | |
Other comprehensive income (loss), net of tax | [1] | $ 2.1 | $ (4.7) | $ (5.9) |
[1] | Amounts have been rounded for presentation purposes and might differ from unrounded results. |
Other Comprehensive Income (L79
Other Comprehensive Income (Loss) - Changes in AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance, Stockholders' Equity | [1] | $ 494 | $ 461.3 | $ 434 |
Ending Balance, Stockholders' Equity | [1] | 529.8 | 494 | 461.3 |
Defined Benefit Plan | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance, Stockholders' Equity | (10.6) | (10.8) | (7.9) | |
Other comprehensive loss | 0.2 | 0.2 | (2.9) | |
Ending Balance, Stockholders' Equity | (10.4) | (10.6) | (10.8) | |
Foreign Currency Translation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance, Stockholders' Equity | (5.7) | (0.8) | 2.2 | |
Other comprehensive loss | 1.9 | (4.9) | (3) | |
Ending Balance, Stockholders' Equity | (3.8) | (5.7) | (0.8) | |
AOCI Attributable to Parent | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance, Stockholders' Equity | [1] | (16.3) | (11.6) | (5.7) |
Other comprehensive loss | 2.1 | (4.7) | (5.9) | |
Ending Balance, Stockholders' Equity | [1] | $ (14.2) | $ (16.3) | $ (11.6) |
[1] | Amounts have been rounded for presentation purposes and might differ from unrounded results. |
Segment and Geographic Inform80
Segment and Geographic Information - Additional Disclosures (Details) | 12 Months Ended |
Dec. 31, 2016SegmentArea | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Number of reportable segments | 1 |
Number of geographic areas | Area | 2 |
Segment and Geographic Inform81
Segment and Geographic Information - Geographic Reporting Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 3,836.8 | $ 3,993.9 | $ 3,687.4 | $ 3,011.3 | $ 2,815.1 | $ 2,991.6 | $ 2,810.4 | $ 2,452.3 | $ 14,529.4 | $ 11,069.4 | $ 10,280.1 |
Income (loss) before income taxes | 29.7 | 20.2 | 26.4 | 9.2 | 28.2 | 24.2 | 21.4 | 9.1 | 85.5 | 82.9 | 66.4 |
Interest expense | 2 | 1.5 | 1 | 0.8 | 0.6 | 0.6 | 0.7 | 0.6 | 5.3 | 2.5 | 2.4 |
Depreciation and amortization | 11.7 | 11.4 | 10.2 | 9.6 | 9.6 | 9.9 | 9.7 | 8.7 | 42.9 | 37.9 | 32 |
Capital expenditures | $ 9.8 | $ 21.7 | $ 14 | $ 8.8 | $ 5.6 | $ 10.3 | $ 11.7 | $ 2.7 | 54.3 | 30.3 | 53.9 |
Reportable Geographical Components | United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 13,133 | 9,829.7 | 8,989 | ||||||||
Income (loss) before income taxes | 90.7 | 79.4 | 70.8 | ||||||||
Interest expense | 40.8 | 35 | 32 | ||||||||
Depreciation and amortization | 31 | 29.3 | 24.9 | ||||||||
Capital expenditures | 52.4 | 28.6 | 53.3 | ||||||||
Reportable Geographical Components | Canada | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,356.4 | 1,203.5 | 1,250.9 | ||||||||
Income (loss) before income taxes | 6.4 | 1.7 | 3.2 | ||||||||
Interest expense | 1.1 | 0.7 | 0.7 | ||||||||
Depreciation and amortization | 2.5 | 2.4 | 2.8 | ||||||||
Capital expenditures | 1.9 | 1.7 | 0.6 | ||||||||
Intersegment Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Interest expense | (36.6) | (33.2) | (30.3) | ||||||||
Corporate, Non-Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 40 | 36.2 | 40.2 | ||||||||
Income (loss) before income taxes | (11.6) | 1.8 | (7.6) | ||||||||
Depreciation and amortization | $ 9.4 | $ 6.2 | $ 4.3 |
Segment and Geographic Inform82
Segment and Geographic Information - Identifiable Assets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | |||
Identifiable assets | $ 1,497 | $ 1,077.3 | $ 1,029.6 |
United States | |||
Segment Reporting Information [Line Items] | |||
Identifiable assets | 1,317.2 | 981.4 | 913.8 |
Canada | |||
Segment Reporting Information [Line Items] | |||
Identifiable assets | $ 179.8 | $ 95.9 | $ 115.8 |
Segment and Geographic Inform83
Segment and Geographic Information - Net Sales By Product Categories (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 3,836.8 | $ 3,993.9 | $ 3,687.4 | $ 3,011.3 | $ 2,815.1 | $ 2,991.6 | $ 2,810.4 | $ 2,452.3 | $ 14,529.4 | $ 11,069.4 | $ 10,280.1 |
Total food/non-food products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,102.1 | 1,138.6 | 1,056.3 | 896.7 | 880.6 | 942 | 911.3 | 807 | 4,193.7 | 3,540.9 | 3,338.1 |
Cigarettes | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 2,734.7 | $ 2,855.3 | $ 2,631.1 | $ 2,114.6 | $ 1,934.5 | $ 2,049.6 | $ 1,899.1 | $ 1,645.3 | 10,335.7 | 7,528.5 | 6,942 |
Food | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,422.5 | 1,251.1 | 1,180.9 | ||||||||
Fresh | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 389.8 | 335 | 281.1 | ||||||||
Candy | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 620 | 557 | 534.3 | ||||||||
Other tobacco products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,133.8 | 870.3 | 827.5 | ||||||||
Health, beauty & general | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 446.7 | 368.8 | 361 | ||||||||
Beverages | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 176.5 | 156.6 | 151.8 | ||||||||
Equipment/other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 4.4 | $ 2.1 | $ 1.5 |
Quarterly Financial Data (Una84
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Quarterly Financial Information [Line Items] | ||||||||||||||
Net sales | $ 3,836,800,000 | $ 3,993,900,000 | $ 3,687,400,000 | $ 3,011,300,000 | $ 2,815,100,000 | $ 2,991,600,000 | $ 2,810,400,000 | $ 2,452,300,000 | $ 14,529,400,000 | $ 11,069,400,000 | $ 10,280,100,000 | |||
Cost of goods sold | 3,637,800,000 | 3,795,000,000 | 3,499,500,000 | 2,860,200,000 | 2,645,000,000 | 2,820,000,000 | 2,651,500,000 | 2,315,000,000 | 13,792,500,000 | 10,431,500,000 | 9,706,400,000 | |||
Gross profit | 199,000,000 | 198,900,000 | 187,900,000 | 151,100,000 | 170,100,000 | 171,600,000 | 158,900,000 | 137,300,000 | 736,900,000 | 637,900,000 | 573,700,000 | |||
Warehousing and distribution expenses | 116,200,000 | 117,400,000 | 106,000,000 | 91,600,000 | 91,700,000 | 92,800,000 | 88,600,000 | 79,500,000 | 431,200,000 | 352,600,000 | 318,400,000 | |||
Selling, general and administrative expenses | 50,300,000 | 57,600,000 | 53,000,000 | 49,400,000 | 48,400,000 | 52,800,000 | 47,500,000 | 47,300,000 | 210,300,000 | 196,000,000 | 184,400,000 | |||
Amortization of intangible assets | 1,500,000 | 1,700,000 | 1,200,000 | 900,000 | 800,000 | 600,000 | 600,000 | 600,000 | 5,300,000 | 2,600,000 | 2,600,000 | |||
Total operating expenses | 168,000,000 | 176,700,000 | 160,200,000 | 141,900,000 | 140,900,000 | 146,200,000 | 136,700,000 | 127,400,000 | 646,800,000 | 551,200,000 | 505,400,000 | |||
Income from operations | 31,000,000 | 22,200,000 | 27,700,000 | 9,200,000 | 29,200,000 | 25,400,000 | 22,200,000 | 9,900,000 | 90,100,000 | 86,700,000 | 68,300,000 | |||
Interest expense | (2,000,000) | (1,500,000) | (1,000,000) | (800,000) | (600,000) | (600,000) | (700,000) | (600,000) | (5,300,000) | (2,500,000) | (2,400,000) | |||
Interest income | 100,000 | 0 | 0 | 100,000 | 100,000 | 100,000 | 100,000 | 200,000 | 200,000 | 500,000 | 600,000 | |||
Foreign currency transaction gains (losses), net | 600,000 | (500,000) | (300,000) | 700,000 | (500,000) | (700,000) | (200,000) | (400,000) | 500,000 | (1,800,000) | (100,000) | |||
Income before income taxes | 29,700,000 | 20,200,000 | 26,400,000 | 9,200,000 | 28,200,000 | 24,200,000 | 21,400,000 | 9,100,000 | 85,500,000 | 82,900,000 | 66,400,000 | |||
Income tax provision | (11,000,000) | (6,700,000) | (10,100,000) | (3,500,000) | (10,500,000) | (9,100,000) | (8,200,000) | (3,600,000) | (31,300,000) | (31,400,000) | (23,700,000) | |||
Net income | $ 18,700,000 | $ 13,500,000 | $ 16,300,000 | $ 5,700,000 | $ 17,700,000 | $ 15,100,000 | $ 13,200,000 | $ 5,500,000 | $ 54,200,000 | [1] | $ 51,500,000 | [1] | $ 42,700,000 | [1] |
Basic net income per common share (in dollars per share) | $ 0.41 | $ 0.29 | $ 0.35 | $ 0.12 | $ 0.39 | $ 0.33 | $ 0.29 | $ 0.12 | $ 1.17 | $ 1.12 | $ 0.93 | |||
Diluted net income per common share (in dollars per share) | $ 0.41 | $ 0.29 | $ 0.35 | $ 0.12 | $ 0.38 | $ 0.33 | $ 0.29 | $ 0.12 | $ 1.17 | $ 1.11 | $ 0.92 | |||
Basic weighted-average shares (in shares) | 46.2 | 46.3 | 46.3 | 46.4 | 46.4 | 46.2 | 46.2 | 46.4 | 46.3 | 46.2 | 46.2 | |||
Diluted weighted-average shares (in shares) | 46.4 | 46.5 | 46.5 | 46.6 | 46.8 | 46.6 | 46.6 | 46.6 | 46.5 | 46.6 | 46.6 | |||
Excise taxes | $ 815,400,000 | $ 879,100,000 | $ 729,500,000 | $ 598,000,000 | $ 566,700,000 | $ 607,100,000 | $ 554,200,000 | $ 483,700,000 | $ 3,000,000,000 | $ 2,200,000,000 | $ 2,100,000,000 | |||
LIFO expense | 3,200,000 | 3,700,000 | 2,900,000 | 3,400,000 | (7,300,000) | 3,300,000 | 3,500,000 | 2,400,000 | 13,200,000 | 1,900,000 | 16,300,000 | |||
Depreciation and amortization | 11,700,000 | 11,400,000 | 10,200,000 | 9,600,000 | 9,600,000 | 9,900,000 | 9,700,000 | 8,700,000 | 42,900,000 | 37,900,000 | 32,000,000 | |||
Stock-based compensation | 600,000 | 1,900,000 | 1,700,000 | 1,900,000 | 2,000,000 | 2,700,000 | 2,100,000 | 1,900,000 | 6,100,000 | 8,700,000 | 6,100,000 | |||
Capital expenditures | 9,800,000 | 21,700,000 | 14,000,000 | 8,800,000 | 5,600,000 | 10,300,000 | 11,700,000 | 2,700,000 | 54,300,000 | 30,300,000 | 53,900,000 | |||
OTP tax refunds, net of tax assessments | 800,000 | 900,000 | ||||||||||||
Acquisition and transition costs | 2,200,000 | 1,800,000 | ||||||||||||
Acquisition and integration expenses | 300,000 | 500,000 | 800,000 | 600,000 | 300,000 | 400,000 | 800,000 | 300,000 | ||||||
Pension Expense | 100,000 | 1,200,000 | 700,000 | 900,000 | 1,300,000 | 1,600,000 | ||||||||
Cigarettes | ||||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||||
Net sales | 2,734,700,000 | 2,855,300,000 | 2,631,100,000 | 2,114,600,000 | 1,934,500,000 | 2,049,600,000 | 1,899,100,000 | 1,645,300,000 | 10,335,700,000 | 7,528,500,000 | 6,942,000,000 | |||
Inventory holding gains | 6,900,000 | 400,000 | 7,000,000 | 1,000,000 | 4,700,000 | 600,000 | 3,800,000 | 1,000,000 | ||||||
Inventory tax stamp holding gain | 700,000 | 8,300,000 | 0 | 0 | ||||||||||
Food/non-food | ||||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||||
Net sales | $ 1,102,100,000 | $ 1,138,600,000 | $ 1,056,300,000 | 896,700,000 | $ 880,600,000 | $ 942,000,000 | $ 911,300,000 | $ 807,000,000 | $ 4,193,700,000 | $ 3,540,900,000 | $ 3,338,100,000 | |||
Lawsuit Against Sonitrol Corporation | ||||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||||
Gain, net of legal costs, related to the settlement | $ 2,000,000 | |||||||||||||
[1] | Amounts have been rounded for presentation purposes and might differ from unrounded results. |
Valuation and Qualifying Acco85
Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 11.6 | $ 11.4 | $ 10.2 |
Charged to Costs and Expenses | 22.9 | 19.9 | 18.6 |
Deductions | (26.8) | (19.8) | (17.3) |
Charged to Other Accounts | 0.2 | 0.1 | (0.1) |
Balance at End of Period | 7.9 | 11.6 | 11.4 |
Trade receivables | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 10.9 | 10.8 | 9.4 |
Charged to Costs and Expenses | 2 | 1.3 | 2.2 |
Deductions | (6) | (1.3) | (0.7) |
Charged to Other Accounts | 0.2 | 0.1 | (0.1) |
Balance at End of Period | 7.1 | 10.9 | 10.8 |
Inventory reserves | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 0.7 | 0.6 | 0.8 |
Charged to Costs and Expenses | 20.9 | 18.6 | 16.4 |
Deductions | (20.8) | (18.5) | (16.6) |
Charged to Other Accounts | 0 | 0 | 0 |
Balance at End of Period | $ 0.8 | $ 0.7 | $ 0.6 |