Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 02, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 000-51515 | |
Entity Registrant Name | Core-Mark Holding Company, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-1489747 | |
Entity Address, Address Line One | 1500 Solana Boulevard, Suite 3400 | |
Entity Address, Postal Zip Code | 76262 | |
Entity Address, City or Town | Westlake, | |
Entity Address, State or Province | TX | |
City Area Code | 940 | |
Local Phone Number | 293-8600 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | CORE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 44,921,547 | |
Entity Central Index Key | 0001318084 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 11.7 | $ 14.1 |
Accounts receivable, net of allowance for credit losses of $15.2 and $14.5 as of September 30, 2020 and December 31, 2019, respectively | 387.3 | 402.9 |
Other receivables, net | 110.1 | 96.2 |
Inventories, net (Note 3) | 832.2 | 670.9 |
Deposits and prepayments | 86.4 | 116 |
Total current assets | 1,427.7 | 1,300.1 |
Property and equipment, net | 269.1 | 249.9 |
Operating lease right-of-use assets | 174.7 | 199.8 |
Goodwill | 72.8 | 72.8 |
Other intangible assets, net | 42.4 | 47.2 |
Other non-current assets, net | 25.3 | 28.6 |
Total assets | 2,012 | 1,898.4 |
Current liabilities: | ||
Accounts payable | 242.7 | 192.2 |
Book overdrafts | 43.3 | 23.9 |
Cigarette and tobacco taxes payable | 225.2 | 280.1 |
Operating lease liabilities | 33.3 | 39.5 |
Accrued liabilities | 176.6 | 151 |
Total current liabilities | 721.1 | 686.7 |
Long-term debt (Note 4) | 444.7 | 382.1 |
Deferred income taxes | 22.9 | 22.6 |
Long-term operating lease liabilities | 151.4 | 173.4 |
Other long-term liabilities | 15.9 | 5.6 |
Claims liabilities | 37.4 | 36.1 |
Total liabilities | 1,393.4 | 1,306.5 |
Contingencies (Note 5) | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value (150,000,000 shares authorized; 52,916,459 and 52,702,551 shares issued; 45,092,286 and 45,113,722 shares outstanding at September 30, 2020 and December 31, 2019, respectively) | 0.5 | 0.5 |
Additional paid-in capital | 294.8 | 290.6 |
Treasury stock at cost (7,824,173 and 7,588,829 shares of common stock at September 30, 2020 and December 31, 2019, respectively) | (118) | (112.6) |
Retained earnings | 446.6 | 418.5 |
Accumulated other comprehensive loss | (5.3) | (5.1) |
Total stockholders’ equity | 618.6 | 591.9 |
Total liabilities and stockholders’ equity | $ 2,012 | $ 1,898.4 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 15.2 | $ 14.5 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 52,916,459 | 52,702,551 |
Common stock, shares outstanding (in shares) | 45,092,286 | 45,113,722 |
Treasury stock, shares (in shares) | 7,824,173 | 7,588,829 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 4,502.6 | $ 4,422.6 | $ 12,705.8 | $ 12,515.7 |
Cost of goods sold | 4,267.6 | 4,176 | 12,039.3 | 11,822 |
Gross profit | 235 | 246.6 | 666.5 | 693.7 |
Warehousing and distribution expenses | 140.4 | 148.6 | 408.3 | 426 |
Selling, general and administrative expenses | 57.3 | 61.8 | 181 | 192.3 |
Amortization of intangible assets | 2.5 | 2.3 | 7.2 | 7.7 |
Total operating expenses | 200.2 | 212.7 | 596.5 | 626 |
Income from operations | 34.8 | 33.9 | 70 | 67.7 |
Interest expense, net | (2.1) | (4.2) | (8.4) | (10.8) |
Foreign currency transaction (losses) gains, net | (0.5) | 0.9 | (0.7) | (0.3) |
Income before income taxes | 32.2 | 30.6 | 60.9 | 56.6 |
Provision for income taxes | (9.2) | (8.1) | (16.7) | (15.1) |
Net income | $ 23 | $ 22.5 | $ 44.2 | $ 41.5 |
Basic earnings per share (in dollars per share) (Note 6) | $ 0.51 | $ 0.49 | $ 0.98 | $ 0.91 |
Diluted earnings per share (in dollars per share) (Note 6) | $ 0.51 | $ 0.49 | $ 0.98 | $ 0.90 |
Basic weighted-average shares (in shares) (Note 6) | 45.1 | 45.8 | 45.1 | 45.8 |
Diluted weighted-average shares (in shares) (Note 6) | 45.4 | 46.1 | 45.3 | 46.1 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 23 | $ 22.5 | $ 44.2 | $ 41.5 |
Foreign currency translation gains (losses), net | 1.2 | (1.5) | (0.2) | 1.5 |
Comprehensive income | $ 24.2 | $ 21 | $ 44 | $ 43 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock Issued | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) Income |
Beginning balance at Dec. 31, 2018 | $ 567 | $ 0.5 | $ 283.3 | $ (90.6) | $ 381.6 | $ (7.8) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issued, net of shares withheld for employee taxes | (2.2) | |||||
Stock-based compensation expense | 7.2 | |||||
Repurchase of common stock | (8.1) | |||||
Net income | 41.5 | 41.5 | ||||
Dividends declared | (15.3) | |||||
Other comprehensive gains (losses) | 1.5 | |||||
Ending balance at Sep. 30, 2019 | $ 591.6 | $ 0.5 | 288.3 | $ (98.7) | 407.8 | (6.3) |
Beginning balance (in shares) at Dec. 31, 2018 | 52.5 | 6.8 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of stock based instruments, net of shares withheld for employee taxes (in shares) | 0.2 | |||||
Repurchase of common stock (in shares) | (0.3) | |||||
Ending balance (in shares) at Sep. 30, 2019 | 45.6 | 52.7 | 7.1 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared (in dollars per share) | $ 0.33 | |||||
Beginning balance at Jun. 30, 2019 | $ 580.8 | $ 0.5 | 285.3 | $ (90.6) | 390.4 | (4.8) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issued, net of shares withheld for employee taxes | (0.1) | |||||
Stock-based compensation expense | 3.1 | |||||
Repurchase of common stock | (8.1) | |||||
Net income | 22.5 | 22.5 | ||||
Dividends declared | (5.1) | |||||
Other comprehensive gains (losses) | (1.5) | |||||
Ending balance at Sep. 30, 2019 | $ 591.6 | $ 0.5 | 288.3 | $ (98.7) | 407.8 | (6.3) |
Beginning balance (in shares) at Jun. 30, 2019 | 52.7 | 6.8 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of stock based instruments, net of shares withheld for employee taxes (in shares) | 0 | |||||
Repurchase of common stock (in shares) | (0.3) | |||||
Ending balance (in shares) at Sep. 30, 2019 | 45.6 | 52.7 | 7.1 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared (in dollars per share) | $ 0.11 | |||||
Beginning balance at Dec. 31, 2019 | $ 591.9 | $ 0.5 | 290.6 | $ (112.6) | 418.5 | (5.1) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issued, net of shares withheld for employee taxes | (2.5) | |||||
Stock-based compensation expense | 6.7 | |||||
Repurchase of common stock | (5.4) | |||||
Net income | 44.2 | 44.2 | ||||
Dividends declared | (16.1) | |||||
Other comprehensive gains (losses) | (0.2) | |||||
Ending balance at Sep. 30, 2020 | $ 618.6 | $ 0.5 | 294.8 | $ (118) | 446.6 | (5.3) |
Beginning balance (in shares) at Dec. 31, 2019 | 52.7 | 7.6 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of stock based instruments, net of shares withheld for employee taxes (in shares) | 0.2 | |||||
Repurchase of common stock (in shares) | (0.2) | |||||
Ending balance (in shares) at Sep. 30, 2020 | 45.1 | 52.9 | 7.8 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared (in dollars per share) | $ 360,000 | |||||
Beginning balance at Jun. 30, 2020 | $ 597 | $ 0.5 | 292.3 | $ (118) | 428.7 | (6.5) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issued, net of shares withheld for employee taxes | (0.1) | |||||
Stock-based compensation expense | 2.6 | |||||
Repurchase of common stock | 0 | |||||
Net income | 23 | 23 | ||||
Dividends declared | (5.1) | |||||
Other comprehensive gains (losses) | 1.2 | |||||
Ending balance at Sep. 30, 2020 | $ 618.6 | $ 0.5 | $ 294.8 | $ (118) | $ 446.6 | $ (5.3) |
Beginning balance (in shares) at Jun. 30, 2020 | 52.9 | 7.8 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of stock based instruments, net of shares withheld for employee taxes (in shares) | 0 | |||||
Repurchase of common stock (in shares) | 0 | |||||
Ending balance (in shares) at Sep. 30, 2020 | 45.1 | 52.9 | 7.8 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared (in dollars per share) | $ 120,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 44.2 | $ 41.5 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
LIFO and inventory provisions | 21.6 | 21.4 |
Amortization of debt issuance costs | 0.6 | 0.6 |
Stock-based compensation expense | 6.7 | 7.2 |
Credit loss expense, net | 5.7 | 5.4 |
Impairment charge and other | 0.3 | 0 |
Loss on disposals | 0.1 | 0.1 |
Depreciation and amortization | 48.9 | 45.8 |
Foreign currency losses, net | 0.7 | 0.3 |
Deferred income taxes | 0.3 | 0.5 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 9.1 | (29.9) |
Other receivables, net | (14.1) | (21.6) |
Inventories, net | (185.4) | (199.5) |
Deposits, prepayments and other non-current assets | 23.3 | (22.9) |
Accounts payable | 51.2 | 74.2 |
Cigarette and tobacco taxes payable | (53.6) | (61.3) |
Claims, accrued and other long-term liabilities | 32.7 | 27.1 |
Net cash used in operating activities | (7.7) | (111.1) |
Cash flows from investing activities: | ||
Acquisition of business | 0 | (2.5) |
Additions to property and equipment, net | (17.9) | (15.3) |
Capitalization of software and related development costs | (2.7) | (3.3) |
Proceeds from sale of property and equipment, net | 0 | 0.2 |
Proceeds from sale of other non-current assets | 1.1 | 0 |
Net cash used in investing activities | (19.5) | (20.9) |
Cash flows from financing activities: | ||
Borrowings under the Credit Facility | 1,424.5 | 1,334.6 |
Repayments under the Credit Facility | (1,386.3) | (1,166.6) |
Payments on finance leases | (8.9) | (3.6) |
Dividends paid | (16.5) | (15.2) |
Repurchases of common stock | (5.4) | (8.1) |
Tax withholdings related to net share settlements of restricted stock units | (2.5) | (2.2) |
Increase (decrease) in book overdrafts | 19.4 | (7.7) |
Net cash provided by financing activities | 24.3 | 131.2 |
Effects of changes in foreign exchange rates | 0.5 | (0.5) |
Change in cash and cash equivalents | (2.4) | (1.3) |
Cash and cash equivalents, beginning of period | 14.1 | 27.3 |
Cash and cash equivalents, end of period | 11.7 | 26 |
Cash (paid) received during the period for: | ||
Income taxes, net | (22.3) | (13.6) |
Interest | (8.2) | (9.1) |
Operating lease liabilities arising from obtaining new right-of-use assets | 5.2 | 7 |
Finance lease liabilities arising from obtaining new right-of-use assets | 36.9 | 29.3 |
Non-cash transactions between other non-current assets and other long-term liabilities | $ 0 | $ 4.7 |
Summary of Company Information
Summary of Company Information and Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Company Information and Basis of Presentation | Summary of Company Information and Basis of Presentation Business Core-Mark Holding Company, Inc., and its subsidiaries (collectively referred to herein as the “Company” or “Core-Mark”), are one of the largest marketers of fresh, food 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 41,000 customer locations in the United States (“U.S.”) and Canada. The Company’s customers include traditional convenience stores, drug stores, mass merchants, 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”), alternative nicotine products, candy, snacks, fast food, groceries, fresh products, dairy, bread, beverages, general merchandise and health and beauty care products. The Company operates a network of thirty-two distribution centers in the U.S. and Canada (excluding two distribution facilities it operates as a third-party logistics provider). Twenty-seven distribution centers are located in the U.S. and five are located in Canada. Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated balance sheet as of September 30, 2020, the unaudited condensed consolidated statements of operations and comprehensive income, the unaudited condensed consolidated statements of stockholders’ equity for the three and nine months ended September 30, 2020 and 2019, and the unaudited condensed consolidated statements of cash flows for the nine months ended September 30, 2020 and 2019, have been prepared in accordance with the requirements of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting. Accordingly, certain footnotes and other financial information that are normally required by generally accepted accounting principles in the U.S. (“GAAP”) have been condensed or omitted. The condensed consolidated balance sheet as of December 31, 2019 has been derived from the Company’s audited financial statements, which are included in its 2019 Annual Report on Form 10-K, filed with the SEC on March 2, 2020. 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. The unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements in its Annual Report on Form 10-K, for the year ended December 31, 2019. The unaudited condensed consolidated interim financial statements include all adjustments necessary for the fair presentation of the Company’s consolidated results of operations, financial position, comprehensive income, changes in stockholders’ equity and cash flows. Results for the interim periods are not necessarily indicative of results to be expected for the full year or any other future periods. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Adoption of Accounting Pronouncements 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 Company adopted this pronouncement on a modified retrospective basis effective January 1, 2020. The new guidance replaces the incurred loss impairment approach with a methodology that incorporates all expected credit loss estimates, resulting in more timely recognition of losses. The adoption of ASU 2016-13 and all subsequent amendments did not have a material impact on the Company’s consolidated financial statements. 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 Company adopted this pronouncement on a prospective basis effective January 1, 2020. 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. Accordingly, the Company has amended its methodology for determining any goodwill impairment calculations. The adoption of ASU 2017-04 did not have a material impact on the Company’s consolidated financial statements. Recent Accounting Standards or Updates Not Yet Effective On August 28, 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans -General (Topic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans (“ASU 2018-14”). The new guidance removes disclosures that are no longer considered cost beneficial, clarifies the specific requirements of disclosures and adds disclosure requirements identified as relevant for defined benefit pension and other post-retirement benefit plans. ASU 2018-14 requires retrospective application and is effective for annual periods beginning after December 15, 2020, with early adoption permitted. The Company has determined that ASU 2018-14 will not have a material impact on its consolidated financial statements. On December 18, 2019 the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). The new guidance enhances and simplifies various aspects of the income tax accounting guidance, including requirements pertaining to hybrid tax regimes, ownership changes in investments, and interim-period accounting for enacted changes in tax law. ASU 2019-12 is effective for annual periods beginning after December 15, 2020, with early adoption permitted. The Company has determined that ASU 2019-12 will not have a material impact on its consolidated financial statements. Concentration of Credit Risks 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. A credit review is completed for new customers and ongoing credit evaluations of each customer’s financial condition are performed periodically, with an allowance recognized for expected 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., the Company’s largest customer, accounted for approximately 13% and 14% of the Company’s net sales for the three and nine months ended September 30, 2020, respectively, and approximately 13% of the Company’s net sales for the three and nine months ended September 30, 2019. No other customer individually accounted for more than 10% of sales for these periods. No si ngle customer individually accounted for 10% or more o f the Company’s accounts receivable as of September 30, 2020 or December 31, 2019. |
Inventories, Net
Inventories, Net | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories, Net Inventories consist of the following (in millions): September 30, December 31, Inventories at FIFO, net of reserves $ 1,058.4 $ 875.6 Less: LIFO reserve (226.2) (204.7) Total inventories, net of reserves $ 832.2 $ 670.9 Cost of goods sold reflects the application of the last-in, first-out (“LIFO”) method of valuing inventories in the U.S. based upon estimated annual producer price indexes. Inventories in Canada are valued on a first-in, first-out (“FIFO”) basis, as LIFO is not a permitted inventory valuation method in Canada. 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 $226.2 million and $204.7 million higher as of September 30, 2020 and December 31, 2019, respectively. The Company recorded LIFO expense of $5.4 million and $7.3 million for the three months ended September 30, 2020 and 2019, respectively, and $21.5 million and $21.7 million for the nine months ended September 30, 2020 and 2019, respectively. |
Long-term Debt
Long-term Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-Term Debt Long-term debt consists of the following (in millions): September 30, December 31, Amounts borrowed (Credit Facility) $ 363.0 $ 324.8 Obligations under finance leases 81.7 57.3 Total long-term debt $ 444.7 $ 382.1 The Company has a revolving credit facility (the “Credit Facility”) with a capacity of $750.0 million as of September 30, 2020, limited by a borrowing base consisting of eligible accounts receivables and inventories. The Credit Facility expires in March 2022 and has an expansion feature which permits an increase of $200.0 million, subject to borrowing base requirements. 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 Offered Rate (“LIBOR”) or Canadian Dollar Offered Rate (“CDOR”) based loans prepaid prior to the end of an interest period). Amounts related to the Credit Facility are as follows (in millions, except interest rate data): September 30, December 31, Amounts borrowed, net $ 363.0 $ 324.8 Outstanding letters of credit 19.4 16.7 Amounts available to borrow (1) 352.1 341.7 Unamortized debt issuance costs 1.1 1.7 ___________________________________________ (1) Subject to borrowing base limitations, and excluding expansion feature of $200.0 million. Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Average borrowings $ 163.4 $ 371.1 $ 284.2 $ 295.0 Range of borrowings 69.0 - 401.0 252.8 - 489.0 69.0 - 499.3 141.7 - 489.0 Unused Credit Facility and letter of credit participation fees (1) 0.4 0.3 1.0 0.9 Amortization of debt issuance costs (1) 0.2 0.2 0.6 0.6 Weighted-average interest rate (2) 1.4 % 3.5 % 1.9 % 3.6 % ___________________________________________ (1) Included in interest expense, net. (2) Calculated based on the daily cost of borrowing, reflecting a blend of prime and LIBOR rates. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies 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 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, financial condition or liquidity. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
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): Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Earnings Net income $ 23.0 $ 22.5 $ 44.2 $ 41.5 Shares Weighted-average common shares outstanding (basic shares) 45.1 45.8 45.1 45.8 Adjustment for assumed dilution: Restricted stock units 0.2 0.2 0.1 0.2 Performance shares 0.1 0.1 0.1 0.1 Weighted-average shares assuming dilution (diluted shares) 45.4 46.1 45.3 46.1 Earnings per share Basic (1) $ 0.51 $ 0.49 $ 0.98 $ 0.91 Diluted (1) $ 0.51 $ 0.49 $ 0.98 $ 0.90 ___________________________________________ (1) Basic and diluted earnings per share are calculated based on unrounded actual amounts. The number of common shares that were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive were 10,279 and 263,983 for the three and nine months ended September 30, 2020, respectively, and 10,279 and 205,748, for the same periods in 2019, respectively. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans 2019 Long-Term Incentive Plan On May 21, 2019, the Company’s stockholders approved the 2019 Long-Term Incentive Plan (“2019 LTIP”) which, among other things, replaces the Company’s 2010 Long-Term Incentive Plan (as amended, the “2010 LTIP”) and reserves for awards an aggregate of up to 4,236,959 shares. As of September 30, 2020, the total number of shares available for issuance under the 2019 LTIP was 3,136,192 . The 2019 LTIP allows the Company to grant, among other things, time-vesting and performance-based restricted stock unit awards. Awards may be made under the 2019 LTIP through May 21, 2029. Grant Activities During the nine months ended September 30, 2020 and 2019, the Company granted 280,325 and 230,235, respectively, of time-vesting restricted stock units to certain of its employees and non-employee directors at a weighted-average grant date fair value of $25.38 and $29.67, respectively. During the nine months ended September 30, 2020, the Company granted 154,363 performance-based restricted stock units to certain of its employees at a weighted-average grant date fair value of $25.48 . The 154,363 performance-based restricted stock units represent the maximum number that can be earned. The number of performance-based restricted stock units that employees ultimately earn will be based on the Company’s achievement of certain specified performance targets for the full year of 2020. During the nine months ended September 30, 2019, the Company granted 154,511 performance-based restricted stock units to certain of its employees at a weighted-average grant date fair value of $29.90 , all of which were ultimately earned, based upon 2019 performance criteria achieved. Stock-Based Compensation Cost Total stock-based compensation cost included in selling, general and administrative expenses was $2.6 million and $3.1 million for the three months ended September 30, 2020 and 2019, respectively. During the nine months ended September 30, 2020 and 2019, the Company recognized stock-based compensation cost of $6.7 million and $7.2 million, respectively. Total unrecognized stock-based compensation cost related to unvested share-based compensation arrangements was $14.1 million at September 30, 2020, which is expected to be recognized over a weighted-average period of 1.6 years. Total unrecognized stock-based compensation cost is adjusted for any unearned or estimated not to be earned performance-based restricted stock units or forfeited shares. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Dividends The Board of Directors approved the following cash dividends in 2020 (in millions, except per share data): Declaration Date Dividend Per Share Record Date Cash Payment Amount Payment Date February 24, 2020 $0.12 March 16, 2020 $5.5 March 27, 2020 May 7, 2020 $0.12 May 22, 2020 $5.4 June 19, 2020 August 6, 2020 $0.12 August 21, 2020 $5.4 September 18, 2020 November 5, 2020 $0.13 November 20, 2020 N/A (1) December 18, 2020 ___________________________________________ (1) Amount will be determined based on common stock outstanding as of the record date. Repurchase of Common Stock On February 24, 2020, the Company’s Board of Directors authorized a $60.0 million stock repurchase program (the “Program”), replacing the Company’s prior stock repurchase program. At the time of approval, the Company had funds totaling $0.4 million remaining under the prior stock repurchase program, which were subsequently retired unused. The timing, price and volume of purchases under the Program are based on market conditions, cash and liquidity requirements, relevant securities laws and other factors. The Program may be discontinued or amended at any time. The Program has no expiration date and terminates when the amount authorized has been expended or the Board of Directors withdraws its authorization. |
Segment and Geographic Informat
Segment and Geographic Information | 9 Months Ended |
Sep. 30, 2020 | |
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. The Chief Executive Officer of the Company has been identified as the CODM. 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”), each of which consists of customers that have similar characteristics. Therefore, the Company has determined that it has two operating segments, U.S. and Canada, which aggregate 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): Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Net sales: United States $ 4,059.1 $ 3,999.3 $ 11,498.7 $ 11,348.2 Canada 431.6 415.7 1,174.6 1,132.4 Corporate (1) 11.9 7.6 32.5 35.1 Total $ 4,502.6 $ 4,422.6 $ 12,705.8 $ 12,515.7 Income before income taxes: United States $ 42.9 $ 33.5 $ 78.2 $ 74.1 Canada 5.0 3.8 9.2 7.7 Corporate (2) (15.7) (6.7) (26.5) (25.2) Total $ 32.2 $ 30.6 $ 60.9 $ 56.6 Interest expense, net: (3) United States $ 14.1 $ 15.6 $ 44.0 $ 41.4 Canada 0.1 0.2 0.4 1.0 Corporate (4) (12.1) (11.6) (36.0) (31.6) Total $ 2.1 $ 4.2 $ 8.4 $ 10.8 Depreciation and amortization: United States $ 12.1 $ 10.6 $ 33.9 $ 32.0 Canada 0.9 0.7 2.5 1.9 Corporate (5) 3.5 3.6 12.5 11.9 Total $ 16.5 $ 14.9 $ 48.9 $ 45.8 Capital expenditures: United States $ 7.9 $ 5.4 $ 16.1 $ 13.9 Canada 0.2 0.7 1.8 1.4 Total $ 8.1 $ 6.1 $ 17.9 $ 15.3 ___________________________________________ (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. (3) Includes $0.1 million and $0.2 million of interest income for the three and nine months ended September 30, 2020, respectively. Includes $0.1 million and $0.3 million of interest income for the three and nine months ended September 30, 2019, respectively. (4) Consists primarily of intercompany eliminations for interest. (5) Consists primarily of depreciation for the consolidation centers and amortization of intangible assets. Identifiable assets by geographic area are as follows (in millions): September 30, December 31, Identifiable assets: United States $ 1,870.2 $ 1,741.4 Canada 141.8 157.0 Total $ 2,012.0 $ 1,898.4 The net sales mix for the Company’s primary product categories is as follows (in millions): Three Months Ended Nine Months Ended September 30, September 30, Product Category 2020 2019 2020 2019 Cigarettes $ 3,000.2 $ 2,880.0 $ 8,475.5 $ 8,181.5 Food 424.3 476.8 1,186.8 1,314.6 Fresh 139.4 135.8 381.8 376.1 Candy 259.1 269.7 759.3 782.8 OTP 403.6 370.4 1,154.5 1,068.9 Health, beauty & general 212.5 226.0 594.8 630.3 Beverages 64.1 63.9 153.2 160.2 Equipment/other (0.6) — (0.1) 1.3 Total food/non-food products 1,502.4 1,542.6 4,230.3 4,334.2 Total net sales $ 4,502.6 $ 4,422.6 $ 12,705.8 $ 12,515.7 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated balance sheet as of September 30, 2020, the unaudited condensed consolidated statements of operations and comprehensive income, the unaudited condensed consolidated statements of stockholders’ equity for the three and nine months ended September 30, 2020 and 2019, and the unaudited condensed consolidated statements of cash flows for the nine months ended September 30, 2020 and 2019, have been prepared in accordance with the requirements of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting. Accordingly, certain footnotes and other financial information that are normally required by generally accepted accounting principles in the U.S. (“GAAP”) have been condensed or omitted. The condensed consolidated balance sheet as of December 31, 2019 has been derived from the Company’s audited financial statements, which are included in its 2019 Annual Report on Form 10-K, filed with the SEC on March 2, 2020. 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. The unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements in its Annual Report on Form 10-K, for the year ended December 31, 2019. The unaudited condensed consolidated interim financial statements include all adjustments necessary for the fair presentation of the Company’s consolidated results of operations, financial position, comprehensive income, changes in stockholders’ equity and cash flows. Results for the interim periods are not necessarily indicative of results to be expected for the full year or any other future periods. |
Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated balance sheet as of September 30, 2020, the unaudited condensed consolidated statements of operations and comprehensive income, the unaudited condensed consolidated statements of stockholders’ equity for the three and nine months ended September 30, 2020 and 2019, and the unaudited condensed consolidated statements of cash flows for the nine months ended September 30, 2020 and 2019, have been prepared in accordance with the requirements of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting. Accordingly, certain footnotes and other financial information that are normally required by generally accepted accounting principles in the U.S. (“GAAP”) have been condensed or omitted. The condensed consolidated balance sheet as of December 31, 2019 has been derived from the Company’s audited financial statements, which are included in its 2019 Annual Report on Form 10-K, filed with the SEC on March 2, 2020. 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. The unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements in its Annual Report on Form 10-K, for the year ended December 31, 2019. The unaudited condensed consolidated interim financial statements include all adjustments necessary for the fair presentation of the Company’s consolidated results of operations, financial position, comprehensive income, changes in stockholders’ equity and cash flows. Results for the interim periods are not necessarily indicative of results to be expected for the full year or any other future periods. |
Adoption of Accounting Pronouncements and Recent Accounting Standards or Updates Not Yet Effective | Adoption of Accounting Pronouncements 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 Company adopted this pronouncement on a modified retrospective basis effective January 1, 2020. The new guidance replaces the incurred loss impairment approach with a methodology that incorporates all expected credit loss estimates, resulting in more timely recognition of losses. The adoption of ASU 2016-13 and all subsequent amendments did not have a material impact on the Company’s consolidated financial statements. 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 Company adopted this pronouncement on a prospective basis effective January 1, 2020. 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. Accordingly, the Company has amended its methodology for determining any goodwill impairment calculations. The adoption of ASU 2017-04 did not have a material impact on the Company’s consolidated financial statements. Recent Accounting Standards or Updates Not Yet Effective On August 28, 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans -General (Topic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans (“ASU 2018-14”). The new guidance removes disclosures that are no longer considered cost beneficial, clarifies the specific requirements of disclosures and adds disclosure requirements identified as relevant for defined benefit pension and other post-retirement benefit plans. ASU 2018-14 requires retrospective application and is effective for annual periods beginning after December 15, 2020, with early adoption permitted. The Company has determined that ASU 2018-14 will not have a material impact on its consolidated financial statements. On December 18, 2019 the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). The new guidance enhances and simplifies various aspects of the income tax accounting guidance, including requirements pertaining to hybrid tax regimes, ownership changes in investments, and interim-period accounting for enacted changes in tax law. ASU 2019-12 is effective for annual periods beginning after December 15, 2020, with early adoption permitted. The Company has determined that ASU 2019-12 will not have a material impact on its consolidated financial statements. |
Concentration of Credit Risks | Concentration of Credit Risks 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. A credit review is completed for new customers and ongoing credit evaluations of each customer’s financial condition are performed periodically, with an allowance recognized for expected 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. |
Inventories, Net (Tables)
Inventories, Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following (in millions): September 30, December 31, Inventories at FIFO, net of reserves $ 1,058.4 $ 875.6 Less: LIFO reserve (226.2) (204.7) Total inventories, net of reserves $ 832.2 $ 670.9 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consists of the following (in millions): September 30, December 31, Amounts borrowed (Credit Facility) $ 363.0 $ 324.8 Obligations under finance leases 81.7 57.3 Total long-term debt $ 444.7 $ 382.1 Amounts related to the Credit Facility are as follows (in millions, except interest rate data): September 30, December 31, Amounts borrowed, net $ 363.0 $ 324.8 Outstanding letters of credit 19.4 16.7 Amounts available to borrow (1) 352.1 341.7 Unamortized debt issuance costs 1.1 1.7 ___________________________________________ (1) Subject to borrowing base limitations, and excluding expansion feature of $200.0 million. Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Average borrowings $ 163.4 $ 371.1 $ 284.2 $ 295.0 Range of borrowings 69.0 - 401.0 252.8 - 489.0 69.0 - 499.3 141.7 - 489.0 Unused Credit Facility and letter of credit participation fees (1) 0.4 0.3 1.0 0.9 Amortization of debt issuance costs (1) 0.2 0.2 0.6 0.6 Weighted-average interest rate (2) 1.4 % 3.5 % 1.9 % 3.6 % ___________________________________________ (1) Included in interest expense, net. (2) Calculated based on the daily cost of borrowing, reflecting a blend of prime and LIBOR rates. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Income Per Common 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): Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Earnings Net income $ 23.0 $ 22.5 $ 44.2 $ 41.5 Shares Weighted-average common shares outstanding (basic shares) 45.1 45.8 45.1 45.8 Adjustment for assumed dilution: Restricted stock units 0.2 0.2 0.1 0.2 Performance shares 0.1 0.1 0.1 0.1 Weighted-average shares assuming dilution (diluted shares) 45.4 46.1 45.3 46.1 Earnings per share Basic (1) $ 0.51 $ 0.49 $ 0.98 $ 0.91 Diluted (1) $ 0.51 $ 0.49 $ 0.98 $ 0.90 ___________________________________________ (1) Basic and diluted earnings per share are calculated based on unrounded actual amounts. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Schedule of Dividends | The Board of Directors approved the following cash dividends in 2020 (in millions, except per share data): Declaration Date Dividend Per Share Record Date Cash Payment Amount Payment Date February 24, 2020 $0.12 March 16, 2020 $5.5 March 27, 2020 May 7, 2020 $0.12 May 22, 2020 $5.4 June 19, 2020 August 6, 2020 $0.12 August 21, 2020 $5.4 September 18, 2020 November 5, 2020 $0.13 November 20, 2020 N/A (1) December 18, 2020 ___________________________________________ |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Business Operations Based on Geographic Area | Information about the Company’s business operations based on geographic areas is as follows (in millions): Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Net sales: United States $ 4,059.1 $ 3,999.3 $ 11,498.7 $ 11,348.2 Canada 431.6 415.7 1,174.6 1,132.4 Corporate (1) 11.9 7.6 32.5 35.1 Total $ 4,502.6 $ 4,422.6 $ 12,705.8 $ 12,515.7 Income before income taxes: United States $ 42.9 $ 33.5 $ 78.2 $ 74.1 Canada 5.0 3.8 9.2 7.7 Corporate (2) (15.7) (6.7) (26.5) (25.2) Total $ 32.2 $ 30.6 $ 60.9 $ 56.6 Interest expense, net: (3) United States $ 14.1 $ 15.6 $ 44.0 $ 41.4 Canada 0.1 0.2 0.4 1.0 Corporate (4) (12.1) (11.6) (36.0) (31.6) Total $ 2.1 $ 4.2 $ 8.4 $ 10.8 Depreciation and amortization: United States $ 12.1 $ 10.6 $ 33.9 $ 32.0 Canada 0.9 0.7 2.5 1.9 Corporate (5) 3.5 3.6 12.5 11.9 Total $ 16.5 $ 14.9 $ 48.9 $ 45.8 Capital expenditures: United States $ 7.9 $ 5.4 $ 16.1 $ 13.9 Canada 0.2 0.7 1.8 1.4 Total $ 8.1 $ 6.1 $ 17.9 $ 15.3 ___________________________________________ (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. (3) Includes $0.1 million and $0.2 million of interest income for the three and nine months ended September 30, 2020, respectively. Includes $0.1 million and $0.3 million of interest income for the three and nine months ended September 30, 2019, respectively. (4) Consists primarily of intercompany eliminations for interest. (5) Consists primarily of depreciation for the consolidation centers and amortization of intangible assets. Identifiable assets by geographic area are as follows (in millions): September 30, December 31, Identifiable assets: United States $ 1,870.2 $ 1,741.4 Canada 141.8 157.0 Total $ 2,012.0 $ 1,898.4 |
Schedule of Net Sales Mix for Primary Product Categories | The net sales mix for the Company’s primary product categories is as follows (in millions): Three Months Ended Nine Months Ended September 30, September 30, Product Category 2020 2019 2020 2019 Cigarettes $ 3,000.2 $ 2,880.0 $ 8,475.5 $ 8,181.5 Food 424.3 476.8 1,186.8 1,314.6 Fresh 139.4 135.8 381.8 376.1 Candy 259.1 269.7 759.3 782.8 OTP 403.6 370.4 1,154.5 1,068.9 Health, beauty & general 212.5 226.0 594.8 630.3 Beverages 64.1 63.9 153.2 160.2 Equipment/other (0.6) — (0.1) 1.3 Total food/non-food products 1,502.4 1,542.6 4,230.3 4,334.2 Total net sales $ 4,502.6 $ 4,422.6 $ 12,705.8 $ 12,515.7 |
Summary of Company Informatio_2
Summary of Company Information and Basis of Presentation (Details) location in Thousands | Sep. 30, 2020facilitycenterlocation |
Revenue from External Customer [Line Items] | |
Number of customer locations | location | 41 |
Number of distribution centers | 32 |
Number of distribution facilities operating as a third party logistics provider | facility | 2 |
United States | |
Revenue from External Customer [Line Items] | |
Number of distribution centers | 27 |
Canada | |
Revenue from External Customer [Line Items] | |
Number of distribution centers | 5 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net sales | Customer concentration risk | Murphy USA | ||||
Concentration Risk [Line Items] | ||||
Major customer percentage of net sales | 13.00% | 13.00% | 14.00% | 13.00% |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Inventory [Line Items] | |||||
Inventories at FIFO, net of reserves | $ 1,058.4 | $ 1,058.4 | $ 875.6 | ||
Less: LIFO reserve | (226.2) | (226.2) | (204.7) | ||
Total inventories, net of reserves | 832.2 | 832.2 | 670.9 | ||
LIFO expense | 5.4 | $ 7.3 | 21.5 | $ 21.7 | |
United States | |||||
Inventory [Line Items] | |||||
Less: LIFO reserve | $ (226.2) | $ (226.2) | $ (204.7) |
Long-term Debt - Schedule of Lo
Long-term Debt - Schedule of Long-term Debt (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||||
Total long-term debt | $ 444,700,000 | $ 444,700,000 | $ 382,100,000 | ||
Amortization of debt issuance costs | 600,000 | $ 600,000 | |||
Revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Unamortized debt issuance costs | 1,100,000 | 1,100,000 | 1,700,000 | ||
Revolving credit facility, expansion feature | 200,000,000 | 200,000,000 | |||
Average borrowings | 163,400,000 | $ 371,100,000 | 284,200,000 | 295,000,000 | |
Unused Credit Facility and letter of credit participation fees | 400,000 | 300,000 | 1,000,000 | 900,000 | |
Amortization of debt issuance costs | $ 200,000 | $ 200,000 | $ 600,000 | $ 600,000 | |
Weighted-average interest rate | 1.40% | 3.50% | 1.90% | 3.60% | |
Revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt | $ 363,000,000 | $ 363,000,000 | 324,800,000 | ||
Outstanding letters of credit | 19,400,000 | 19,400,000 | 16,700,000 | ||
Amounts available to borrow | 352,100,000 | 352,100,000 | 341,700,000 | ||
Obligations under capital leases | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt | 81,700,000 | 81,700,000 | $ 57,300,000 | ||
Minimum | Revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Average borrowings | 69,000,000 | $ 252,800,000 | 69,000,000 | $ 141,700,000 | |
Maximum | Revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Average borrowings | $ 401,000,000 | $ 489,000,000 | $ 499,300,000 | $ 489,000,000 |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) - Revolving credit facility | Sep. 30, 2020USD ($) |
Debt Instrument [Line Items] | |
Revolving credit facility, maximum borrowing capacity | $ 750,000,000 |
Revolving credit facility, expansion feature | $ 200,000,000 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings | ||||
Net income | $ 23 | $ 22.5 | $ 44.2 | $ 41.5 |
Shares | ||||
Weighted-average common shares outstanding (basic shares) | 45.1 | 45.8 | 45.1 | 45.8 |
Adjustment for assumed dilution: | ||||
Weighted-average shares assuming dilution (diluted shares) | 45.4 | 46.1 | 45.3 | 46.1 |
Earnings per share | ||||
Basic (in dollars per share) | $ 0.51 | $ 0.49 | $ 0.98 | $ 0.91 |
Diluted (in dollars per share) | $ 0.51 | $ 0.49 | $ 0.98 | $ 0.90 |
Restricted stock units | ||||
Adjustment for assumed dilution: | ||||
Incremental common shares attributable to share-based payment arrangements (in shares) | 0.2 | 0.2 | 0.1 | 0.2 |
Performance shares | ||||
Adjustment for assumed dilution: | ||||
Incremental common shares attributable to share-based payment arrangements (in shares) | 0.1 | 0.1 | 0.1 | 0.1 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive securities not included in the computation of diluted earnings per share (in shares) | 10,279 | 10,279 | 263,983 | 205,748 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | May 21, 2019 | |
Stock-based Compensation Arrangement by Stock-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | 4,236,959 | ||||
Shares available for issuance (in shares) | 3,136,192 | 3,136,192 | |||
Stock-based compensation cost | $ 2.6 | $ 3.1 | $ 6.7 | $ 7.2 | |
Total unrecognized compensation cost related to non-vested share-based compensation arrangements | $ 14.1 | $ 14.1 | |||
Compensation cost not yet recognized, period for recognition | 1 year 7 months 6 days | ||||
Performance-Based Restricted Stock Units | |||||
Stock-based Compensation Arrangement by Stock-based Payment Award [Line Items] | |||||
Granted, number of shares (in shares) | 154,363 | 154,511 | |||
Grants in period, weighted average grant date fair value (in dollars per share) | $ 25.48 | $ 29.90 | |||
2010 LTIP | Restricted Stock Units | |||||
Stock-based Compensation Arrangement by Stock-based Payment Award [Line Items] | |||||
Granted, number of shares (in shares) | 280,325 | 230,235 | |||
Grants in period, weighted average grant date fair value (in dollars per share) | $ 25.38 | $ 29.67 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 05, 2020 | Sep. 18, 2020 | Aug. 06, 2020 | Jun. 19, 2020 | May 07, 2020 | Mar. 27, 2020 | Feb. 24, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Class of Stock [Line Items] | |||||||||||
Dividends per share (in dollars per share) | $ 0.12 | $ 0.12 | $ 0.12 | $ 120,000 | $ 0.11 | $ 360,000 | $ 0.33 | ||||
Cash Payment Amount | $ 5.4 | $ 5.4 | $ 5.5 | $ 16.5 | $ 15.2 | ||||||
Subsequent Event | |||||||||||
Class of Stock [Line Items] | |||||||||||
Dividends per share (in dollars per share) | $ 0.13 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Feb. 24, 2020 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Authorized increase to stock repurchase plan | $ 60,000,000 | ||||
Total repurchase costs | $ 5,400,000 | ||||
Number of shares repurchased (in shares) | 0 | 250,925 | 235,344 | 250,925 | |
2017 Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Common stock available for future share repurchases, amount | $ 400,000 | ||||
2020 Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Common stock available for future share repurchases, amount | $ 54,600,000 | $ 54,600,000 |
Segment and Geographic Inform_3
Segment and Geographic Information - Narrative (Details) | 9 Months Ended |
Sep. 30, 2020SegmentArea | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Number of reportable segments | 1 |
Number of geographic operating areas | Area | 2 |
Segment and Geographic Inform_4
Segment and Geographic Information - Information by Geographic Areas (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 4,502.6 | $ 4,422.6 | $ 12,705.8 | $ 12,515.7 |
Income before income taxes | 32.2 | 30.6 | 60.9 | 56.6 |
Interest expense, net | 2.1 | 4.2 | 8.4 | 10.8 |
Depreciation and amortization | 16.5 | 14.9 | 48.9 | 45.8 |
Capital expenditures: | 8.1 | 6.1 | 17.9 | 15.3 |
Interest income | 0.1 | 0.1 | 0.2 | 0.3 |
Operating Segment | United States | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 4,059.1 | 3,999.3 | 11,498.7 | 11,348.2 |
Income before income taxes | 42.9 | 33.5 | 78.2 | 74.1 |
Interest expense, net | 14.1 | 15.6 | 44 | 41.4 |
Depreciation and amortization | 12.1 | 10.6 | 33.9 | 32 |
Capital expenditures: | 7.9 | 5.4 | 16.1 | 13.9 |
Operating Segment | Canada | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 431.6 | 415.7 | 1,174.6 | 1,132.4 |
Income before income taxes | 5 | 3.8 | 9.2 | 7.7 |
Interest expense, net | 0.1 | 0.2 | 0.4 | 1 |
Depreciation and amortization | 0.9 | 0.7 | 2.5 | 1.9 |
Capital expenditures: | 0.2 | 0.7 | 1.8 | 1.4 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 11.9 | 7.6 | 32.5 | 35.1 |
Income before income taxes | (15.7) | (6.7) | (26.5) | (25.2) |
Interest expense, net | (12.1) | (11.6) | (36) | (31.6) |
Depreciation and amortization | $ 3.5 | $ 3.6 | $ 12.5 | $ 11.9 |
Segment and Geographic Inform_5
Segment and Geographic Information - Identifiable Assets (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Identifiable assets: | ||
Total | $ 2,012 | $ 1,898.4 |
United States | ||
Identifiable assets: | ||
Total | 1,870.2 | 1,741.4 |
Canada | ||
Identifiable assets: | ||
Total | $ 141.8 | $ 157 |
Segment and Geographic Inform_6
Segment and Geographic Information - Net Sales Mix By Primary Product Categories (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue from External Customer [Line Items] | ||||
Net sales | $ 4,502.6 | $ 4,422.6 | $ 12,705.8 | $ 12,515.7 |
Cigarettes | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 3,000.2 | 2,880 | 8,475.5 | 8,181.5 |
Food | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 424.3 | 476.8 | 1,186.8 | 1,314.6 |
Fresh | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 139.4 | 135.8 | 381.8 | 376.1 |
Candy | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 259.1 | 269.7 | 759.3 | 782.8 |
OTP | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 403.6 | 370.4 | 1,154.5 | 1,068.9 |
Health, beauty & general | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 212.5 | 226 | 594.8 | 630.3 |
Beverages | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 64.1 | 63.9 | 153.2 | 160.2 |
Equipment/other | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | (0.6) | 0 | (0.1) | 1.3 |
Total food/non-food products | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | $ 1,502.4 | $ 1,542.6 | $ 4,230.3 | $ 4,334.2 |