Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Jan. 29, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-32504 | ||
Entity Registrant Name | TreeHouse Foods, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-2311383 | ||
Entity Address, Address Line One | 2021 Spring Road, Suite 600 | ||
Entity Address, City or Town | Oak Brook, | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60523 | ||
City Area Code | 708 | ||
Local Phone Number | 483-1300 | ||
Title of 12(b) Security | Common Stock, $.01 par value | ||
Trading Symbol | THS | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,457.3 | ||
Entity Common Stock, Shares Outstanding | 55,892,015 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement for its Annual Meeting of Stockholders to be held on April 29, 2021 are incorporated by reference into Part III of this Form 10-K | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001320695 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 364.6 | $ 202.3 |
Receivables, net of allowance for doubtful accounts of $0.3 and $0.9 | 308.8 | 270.6 |
Inventories | 598.6 | 544 |
Prepaid expenses and other current assets | 86.1 | 44.5 |
Assets held for sale | 0 | 27 |
Assets of discontinued operations | 70.7 | 131.1 |
Total current assets | 1,428.8 | 1,219.5 |
Property, plant, and equipment, net | 1,070 | 1,045.2 |
Operating lease right-of-use assets | 160.7 | 175.3 |
Goodwill | 2,178.7 | 2,107.3 |
Intangible assets, net | 615 | 554.7 |
Other assets, net | 32.5 | 37.4 |
Total assets | 5,485.7 | 5,139.4 |
Current liabilities: | ||
Accounts payable | 627.7 | 508.4 |
Accrued expenses | 340.6 | 273.2 |
Current portion of long-term debt | 15.7 | 15.3 |
Liabilities of discontinued operations | 6.7 | 16.5 |
Total current liabilities | 990.7 | 813.4 |
Long-term debt | 2,199 | 2,091.7 |
Operating lease liabilities | 144.5 | 158.5 |
Deferred income taxes | 158.3 | 101.5 |
Other long-term liabilities | 128.2 | 143.4 |
Total liabilities | 3,620.7 | 3,308.5 |
Commitments and contingencies (Note 19) | ||
Stockholders’ equity: | ||
Preferred stock, par value $0.01 per share, 10.0 shares authorized, none issued | 0 | 0 |
Common stock, par value $0.01 per share, 90.0 shares authorized, 55.9 and 56.2 shares outstanding, respectively | 0.6 | 0.6 |
Treasury stock | (108.3) | (83.3) |
Additional paid-in capital | 2,179.9 | 2,154.6 |
Accumulated deficit | (143.2) | (157) |
Accumulated other comprehensive loss | (64) | (84) |
Total stockholders’ equity | 1,865 | 1,830.9 |
Total liabilities and stockholders’ equity | $ 5,485.7 | $ 5,139.4 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 0.3 | $ 0.9 |
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 90,000,000 | 90,000,000 |
Common stock, shares outstanding (in shares) | 55,900,000 | 56,200,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Income Statement [Abstract] | ||||
Net sales | $ 4,349.7 | $ 4,288.9 | $ 4,587.8 | |
Cost of sales | 3,547.5 | 3,492.1 | 3,695.6 | |
Gross profit | 802.2 | 796.8 | 892.2 | |
Operating expenses: | ||||
Selling and distribution | 263 | 256.9 | 328.5 | |
General and administrative | 248.3 | 253.2 | 264.4 | |
Amortization expense | 70.7 | 74.1 | 80.2 | |
Asset impairment | 0 | 129.1 | 0 | |
Other operating expense, net | 71.1 | 99.6 | 135.7 | |
Total operating expenses | 653.1 | 812.9 | 808.8 | |
Operating income (loss) | 149.1 | (16.1) | 83.4 | |
Other expense (income): | ||||
Interest expense | 104.8 | 102.4 | 105.4 | |
Loss on extinguishment of debt | 1.2 | 0 | 6.6 | |
(Gain) loss on foreign currency exchange | (1.7) | (3.5) | 8.6 | |
Other expense, net | 27.7 | 40.8 | 20.4 | |
Total other expense | 132 | 139.7 | 141 | |
Income (loss) before income taxes | 17.1 | (155.8) | (57.6) | |
Income tax benefit | (32.1) | (45.5) | (11.4) | |
Net income (loss) from continuing operations | 49.2 | (110.3) | (46.2) | |
Net loss from discontinued operations | (35.4) | (250.7) | (18.2) | |
Net income (loss) | $ 13.8 | $ (361) | $ (64.4) | |
Earnings (loss) per common share - basic: | ||||
Continuing operations (in usd per share) | $ 0.87 | $ (1.96) | $ (0.83) | |
Discontinued operations (in usd per share) | (0.63) | (4.46) | (0.33) | |
Net earnings (loss) per share basic (in usd per share) | [1] | 0.24 | (6.42) | (1.15) |
Earnings (loss) per common share - diluted: | ||||
Continuing operations (in usd per share) | 0.87 | (1.96) | (0.83) | |
Discontinued operations (in usd per share) | (0.62) | (4.46) | (0.33) | |
Net earnings (loss) per share diluted (in usd per share) | [1] | $ 0.24 | $ (6.42) | $ (1.15) |
Weighted average common shares: | ||||
Basic (in shares) | 56.5 | 56.2 | 56 | |
Diluted (in shares) | 56.7 | 56.2 | 56 | |
[1] | The sum of the individual per share amounts may not add due to rounding. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 13.8 | $ (361) | $ (64.4) | |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | 12.1 | 12.3 | (34.5) | |
Pension and postretirement reclassification adjustment | 7.9 | 0.8 | 0 | |
Adoption of ASU 2018-02 reclassification to retained earnings | 0 | 0 | (1.1) | |
Other comprehensive income (loss) | 20 | 13.1 | (35.6) | |
Comprehensive income (loss) | $ 33.8 | $ (347.9) | $ (100) | |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201802Member |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit)Cumulative Effect, Period of Adoption, Adjustment | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossCumulative Effect, Period of Adoption, Adjustment |
Balance (in shares) at Dec. 31, 2017 | 57.2 | (0.6) | |||||||
Beginning balance at Dec. 31, 2017 | $ 2,284.4 | $ 0.3 | $ 0.6 | $ 2,107 | $ 267 | $ 1.4 | $ (28.7) | $ (61.5) | $ (1.1) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (64.4) | (64.4) | |||||||
Other comprehensive income (loss) | $ (34.5) | (34.5) | |||||||
Treasury stock repurchases (in shares) | (1.2) | (1.2) | |||||||
Treasury stock repurchases | $ (54.6) | $ (54.6) | |||||||
Exercise of stock options and issuance of other stock awards (in shares) | 0.6 | ||||||||
Exercise of stock options and issuance of other stock awards | (3.6) | (3.6) | |||||||
Stock-based compensation | 32.4 | 32.4 | |||||||
Balance (in shares) at Dec. 31, 2018 | 57.8 | (1.8) | |||||||
Ending balance at Dec. 31, 2018 | 2,160 | $ 0.6 | 2,135.8 | 204 | $ (83.3) | (97.1) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (361) | (361) | |||||||
Other comprehensive income (loss) | $ 13.1 | 13.1 | |||||||
Treasury stock repurchases (in shares) | 0 | ||||||||
Treasury stock repurchases | $ 0 | ||||||||
Exercise of stock options and issuance of other stock awards (in shares) | 0.2 | ||||||||
Exercise of stock options and issuance of other stock awards | (5) | (5) | |||||||
Stock-based compensation | 23.8 | 23.8 | |||||||
Balance (in shares) at Dec. 31, 2019 | 58 | (1.8) | |||||||
Ending balance at Dec. 31, 2019 | 1,830.9 | $ 0.6 | 2,154.6 | (157) | $ (83.3) | (84) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 13.8 | 13.8 | |||||||
Other comprehensive income (loss) | $ 20 | 20 | |||||||
Treasury stock repurchases (in shares) | (0.6) | (0.6) | |||||||
Treasury stock repurchases | $ (25) | $ (25) | |||||||
Exercise of stock options and issuance of other stock awards (in shares) | 0.3 | ||||||||
Exercise of stock options and issuance of other stock awards | (1.1) | (1.1) | |||||||
Stock-based compensation | 26.4 | 26.4 | |||||||
Balance (in shares) at Dec. 31, 2020 | 58.3 | (2.4) | |||||||
Ending balance at Dec. 31, 2020 | $ 1,865 | $ 0.6 | $ 2,179.9 | $ (143.2) | $ (108.3) | $ (64) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 13.8 | $ (361) | $ (64.4) |
Net loss from discontinued operations | (35.4) | (250.7) | (18.2) |
Net income (loss) from continuing operations | 49.2 | (110.3) | (46.2) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 203.2 | 210.6 | 225.2 |
Asset impairment | 0 | 129.1 | 0 |
Stock-based compensation | 26.1 | 22.6 | 30.7 |
Loss (gain) on divestitures | 0.3 | 0 | (14.3) |
Unrealized loss on derivative contracts | 29.9 | 47 | 22.5 |
Deferred income taxes | 63.4 | (63.3) | (16.8) |
Other, net | 7.1 | (0.5) | 25.2 |
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures: | |||
Receivables | (36.2) | 80.6 | (29.1) |
Inventories | (30.8) | 65.5 | 50.6 |
Prepaid expenses and other assets | (33.1) | 7.1 | 32.5 |
Accounts payable | 108.3 | (80.9) | 106.1 |
Accrued expenses and other liabilities | 16.2 | (43.6) | 85.7 |
Net cash provided by operating activities - continuing operations | 403.6 | 263.9 | 472.1 |
Net cash provided by operating activities - discontinued operations | 13.1 | 43.8 | 33.7 |
Net cash provided by operating activities | 416.7 | 307.7 | 505.8 |
Cash flows from investing activities: | |||
Additions to property, plant, and equipment | (90.5) | (122.7) | (155) |
Additions to intangible assets | (15.2) | (24.1) | (22.4) |
Proceeds from sale of fixed assets | 5.1 | 4.8 | 5.7 |
Acquisitions | (256.7) | 0 | 0 |
Proceeds from divestitures | 26.9 | 0 | 30.8 |
Other | 0 | 2.7 | (1.5) |
Net cash used in investing activities - continuing operations | (330.4) | (139.3) | (142.4) |
Net cash (used in) provided by investing activities - discontinued operations | (2) | 71.2 | (18.5) |
Net cash used in investing activities | (332.4) | (68.1) | (160.9) |
Cash flows from financing activities: | |||
Borrowings under Revolving Credit Facility | 100 | 194.1 | 108.7 |
Payments under Revolving Credit Facility | (100) | (194.1) | (108.7) |
Repurchases of Notes | (375.9) | 0 | (196.2) |
Payments on finance lease obligations | (1.8) | (1.9) | (1.2) |
Payment of deferred financing costs | (8.3) | 0 | (2.4) |
Payments on Term Loans | (14) | (200) | (56.5) |
Proceeds from issuance of 2028 Notes | 500 | 0 | 0 |
Repurchases of common stock | (25) | 0 | (54.6) |
Receipts related to stock-based award activities | 3.2 | 0.7 | 4.7 |
Payments related to stock-based award activities | (4.2) | (5.7) | (8.4) |
Other | 0 | 0 | 3.6 |
Net cash provided by (used in) financing activities - continuing operations | 74 | (206.9) | (311) |
Net cash provided by (used in) financing activities - discontinued operations | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | 74 | (206.9) | (311) |
Effect of exchange rate changes on cash and cash equivalents | 4 | 5.3 | (2.4) |
Net increase in cash and cash equivalents | 162.3 | 38 | 31.5 |
Cash and cash equivalents, beginning of year | 202.3 | 164.3 | 132.8 |
Cash and cash equivalents, end of year | 364.6 | 202.3 | 164.3 |
Supplemental cash flow disclosures: | |||
Interest paid | 84.3 | 110.2 | 118.2 |
Net income taxes refunded | (61.7) | (7.3) | (7) |
Non-cash investing activities: | |||
Accrued purchase of property and equipment | 36.5 | 28.8 | 19.8 |
Accrued other intangible assets | 3.8 | 3.2 | $ 6.1 |
Right-of-use assets and operating lease obligations recognized at / after ASU 2016-02 transition | $ 24.4 | $ 13.1 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation — The Consolidated Financial Statements include the accounts of TreeHouse Foods, Inc. and its 100% owned direct and indirect subsidiaries (the "Company," "TreeHouse,” "we," "us," or "our"). All intercompany balances and transactions are eliminated in consolidation. Discontinued Operations — Beginning in the third quarter of 2019, the Company determined that both its Snacks division and its Ready-to-eat ("RTE") Cereal business met the discontinued operations criteria in Accounting Standards Codification ("ASC") 205-20-45 and were classified as discontinued operations. As such, both businesses have been excluded from continuing operations and segment results for all periods presented. Refer to Note 7 for additional information. Change in Segments — In the first quarter of 2020, the Company changed how it manages its business, allocates resources, and goes to market, which resulted in modifications to its organizational and segment structure. All prior period information has been recast to reflect this change in reportable segments. Refer to Note 21 for additional information. Use of Estimates — The preparation of our Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to use judgment to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the Consolidated Financial Statements, and the reported amounts of net sales and expenses during the reporting period. Actual results could differ from these estimates. Cash Equivalents — We consider temporary cash investments with an original maturity of three months or less to be cash equivalents. As of December 31, 2020 and 2019, $92.3 million and $72.7 million, respectively, represents cash and cash equivalents held in foreign jurisdictions, in local currencies. Inventories — Inventories are stated at the lower of cost or net realizable value. The Company's inventory is valued using the FIFO method. The costs of finished goods inventories include raw materials, labor, and overhead costs. Property, Plant, and Equipment — Property, plant, and equipment are stated at acquisition cost, plus capitalized interest on borrowings during the actual construction period of major capital projects. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets as follows: Asset Useful Life Buildings and improvements 12-40 years Machinery and equipment 3-15 years Office furniture and equipment 3-12 years Building improvements are depreciated over the shorter of the estimated useful life of the assets or the remaining useful life. We perform impairment tests when circumstances indicate that the carrying value of an asset may not be recoverable. Finance leases are amortized over the shorter of their lease term or their estimated useful lives, and amortization expense is included in depreciation expense. Expenditures for repairs and maintenance, which do not improve or extend the life of the assets, are expensed as incurred. Intangible and Other Assets — Identifiable intangible assets with finite lives are amortized over their estimated useful lives as follows: Asset Useful Life Customer-related 5 to 20 years Trademarks 10 to 20 years Non-competition agreements Based on the terms of the agreements Deferred financing costs associated with line-of-credit arrangements Based on the terms of the agreements Formulas/recipes 5 to 7 years Computer software 3 to 10 years All amortization expense related to intangible assets is recorded in Amortization expense in the Consolidated Statements of Operations. Indefinite lived trademarks are evaluated for impairment annually in the fourth quarter or more frequently, if events or changes in circumstances indicate that the asset might be impaired. Impairment is indicated when their book value exceeds fair value. If the fair value of an evaluated asset is less than its book value, the asset is written down to fair value, which is generally based on its discounted future cash flows. Amortizable intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If an evaluation of the undiscounted cash flows indicates impairment, the asset is written down to its estimated fair value, which is generally based on discounted future cash flows. Goodwill is evaluated annually in the fourth quarter or more frequently, if events or changes in circumstances require an interim assessment. We assess goodwill for impairment (as of December 31) at the reporting unit level using income and market approaches, employing significant assumptions regarding growth, discount rates, and profitability at each reporting unit. Our estimates under the income approach are determined based on a discounted cash flow model. The market approach uses a market multiple methodology employing earnings before interest, taxes, depreciation, and amortization ("EBITDA") and applies a range of multiples to those amounts in determining the indicated fair value. In determining the multiples used in this approach, we obtain the multiples for selected peer companies using the most recent publicly available information. In determining the indicated fair value of each reporting unit, the Company concludes based on the income approach, and uses the market approach to corroborate, as the Company believes the income approach is the most reliable indicator of the fair value of the reporting units. The resulting value is then compared to the carrying value of each reporting unit to determine if impairment is necessary. Revenue Recognition — We manufacture and sell food and beverage products to retailers, distributors, food manufacturers, and the food-away-from-home business. Revenue recognition is completed on a point in time basis when product control is transferred to the customer. In general, control transfers to the customer when the product is shipped or delivered to the customer based upon applicable shipping terms. For each contract, the Company considers the transfer of products, each of which is distinct, to be the identified performance obligation generally satisfied within one year. No payment terms beyond one year are granted at contract inception. Most contracts also include some form of variable consideration. The most common forms of variable consideration include discounts, rebates, and sales returns and allowances. Variable consideration is treated as a reduction in revenue when product revenue is recognized. Depending on the specific type of variable consideration, we use either the expected value or most likely amount method to determine the variable consideration. The Company reviews and updates its estimates and related accruals of variable consideration each period based on the terms of the agreements, historical experience, and any recent changes in the market. The Company does not have significant deferred revenue or unbilled receivable balances arising from transactions with customers. We do not capitalize contract inception costs, as contracts are one year or less. The Company does not incur significant fulfillment costs requiring capitalization. Shipping and handling costs associated with outbound freight are included within Selling and distribution expenses and are accounted for as a fulfillment cost as incurred, including shipping and handling costs after control over a product has transferred to a customer. Shipping and handling costs recorded as a component of Selling and distribution expense were approximately $153.6 million, $148.3 million, and $199.2 million for the years ended December 31, 2020, 2019, and 2018, respectively. In addition, any taxes collected on behalf of government authorities are excluded from net sales. Stock-Based Compensation — We measure compensation expense for our equity awards at their grant date fair value. The resulting expense is recognized over the relevant service period. Accounts Receivable — We provide credit terms to customers in-line with industry standards, perform ongoing credit evaluations of our customers, and maintain allowances for potential credit losses based on historical experience. Customer balances are written off after all collection efforts are exhausted. Estimated product returns, which have not been material, are deducted from sales at the time of shipment. Employment-Related Benefits — We provide a range of benefits to our employees, including pension and postretirement benefits to our eligible employees and retirees. We record annual amounts relating to these plans based on calculations specified by GAAP, which include various actuarial assumptions, such as discount rates, assumed investment rates of return, compensation increases, employee turnover rates, and health care cost trend rates. We review our actuarial assumptions on an annual basis and make modifications to the assumptions based on current rates and trends when appropriate. Workers' Compensation — The measurement of the liability for our cost of providing these benefits is largely based upon loss development factors that contemplate a number of variables, including claims history and expected trends. These loss development factors are based on industry factors and, along with the estimated liabilities, are developed by us in consultation with external insurance brokers and actuaries. Changes in loss development factors, claims history, and cost trends could result in substantially different results in the future. Income Taxes — The provision for income taxes includes federal, foreign, state, and local income taxes currently payable, and those deferred because of temporary differences between the financial statement and tax bases of assets and liabilities. Deferred tax assets or liabilities are computed based on the difference between the financial statement and income tax bases of assets and liabilities using enacted tax rates. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Deferred income tax expenses or credits are based on the changes in the asset or liability from period to period. We account for uncertain tax positions using a "more-likely-than-not" threshold. A tax benefit from an uncertain tax position is recognized if it is more-likely-than-not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position, or the statute of limitations concerning such issues lapses. Foreign Currency Translation and Transactions — The functional currency of the Company’s foreign operations is the applicable local currency. The functional currency is translated into U.S. dollars for balance sheet accounts using currency exchange rates in effect as of the balance sheet date, and for revenue and expense accounts using a weighted-average exchange rate during the fiscal year. The translation adjustments are deferred as a separate component of Stockholders’ equity in Accumulated other comprehensive loss. Gains or losses resulting from transactions denominated in foreign currencies and intercompany debt that is not of a long-term investment nature are included in (Gain) loss on foreign currency exchange in the Consolidated Statements of Operations. Gains or losses resulting from intercompany debt that is designated a long-term investment are recorded as a separate component of Stockholders' equity in Accumulated other comprehensive loss. Restructuring Expenses — Restructuring charges principally consist of severance and other employee separation costs, contract termination costs, accelerated depreciation, professional fees, and certain long-lived asset impairments. The Company recognizes restructuring obligations and liabilities for exit and disposal activities at fair value in the period the liability is incurred. One-time employee termination benefits for employee severance costs are expensed evenly starting at the communication date over the period during which the employee is required to render service to receive the severance. Ongoing benefit arrangements for employee severance costs are expensed when they become probable and reasonably estimable. Depreciation expense related to assets that will be disposed of or idled as a part of the restructuring activity is accelerated through the expected date of the asset shut down. Restructuring charges are incurred as a component of Operating income (loss). Research and Development Costs — We record research and development charges to expense as they are incurred and report them in General and administrative expense in our Consolidated Statements of Operations. Expenditures totaled $16.6 million, $18.8 million, and $19.2 million for the years ended December 31, 2020, 2019, and 2018, respectively. Advertising Costs —Advertising costs are expensed as incurred and reported in Selling and distribution expense of our Consolidated Statements of Operations. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently Issued Accounting Pronouncements | 2. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS Adopted In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) , which removes certain exceptions to the general principles in Topic 740 and improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2020 with early adoption permitted. Amendments are to be applied prospectively, except for certain amendments that are to be applied either retrospectively or with a modified retrospective approach through a cumulative effect adjustment recorded to retained earnings. The Company early adopted this guidance during the first quarter of 2020. The adoption did not have a material impact on the Company's financial statements. In March 2020, the SEC amended Rules 3-10 and 3-16 of Regulation S-X regarding financial disclosure requirements for registered debt offerings involving subsidiaries as either issuers or guarantors and affiliates whose securities are pledged as collateral. This new guidance narrows the circumstances that require separate financial statements of subsidiary issuers and guarantors and streamlines the alternative disclosures required in lieu of those statements. The final rule also allows for the simplified disclosure to be included within Management’s Discussion and Analysis of Financial Condition and Results of Operations. This rule is effective January 4, 2021 with earlier adoption permitted. The Company early adopted this new rule during the first quarter of 2020. In October 2020, the FASB issued ASU 2020-09, Amendments to SEC Paragraphs Pursuant to SEC Release No. 33-10762 (Topic 470) , to reflect the SEC’s new disclosure rules on guaranteed debt securities offerings adopted by the Company in the first quarter of 2020. Not yet adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying GAAP to transactions affected by reference rate reform if certain criteria are met. These transactions include: contract modifications, hedging relationships, and the sale or transfer of debt securities classified as held-to-maturity. Entities may apply the ASU from March 12, 2020 through December 31, 2022. The Company is currently evaluating the impact of this new ASU on its Consolidated Financial Statements and related disclosures. |
Restructuring Programs
Restructuring Programs | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Programs | 3. RESTRUCTURING PROGRAMS The Company’s restructuring and margin improvement activities are part of an enterprise-wide transformation to improve long-term profitability of the Company. These activities are aggregated into three categories: (1) TreeHouse 2020 – a long-term growth and margin improvement strategy; (2) Structure to Win – an operating expense improvement program; and (3) other restructuring and plant closing costs (collectively the "Restructuring Programs"). The costs by activity for the Restructuring Programs are outlined below: Year Ended December 31, 2020 2019 2018 (In millions) TreeHouse 2020 $ 40.5 $ 89.5 $ 118.4 Structure to Win 32.7 15.9 44.1 Other restructuring and plant closing costs — — 4.2 Total Restructuring Programs $ 73.2 $ 105.4 $ 166.7 Expenses associated with these programs are recorded in Cost of sales, General and administrative, and Other operating expense, net in the Consolidated Statements of Operations. The Company does not allocate costs associated with Restructuring Programs to reportable segments when evaluating the performance of its segments. As a result, costs associated with Restructuring Programs are not presented by reportable segment. See Note 21 for additional information. Below is a summary of costs by line item for the Restructuring Programs: Year Ended December 31, 2020 2019 2018 (In millions) Cost of sales $ 0.9 $ 4.4 $ 13.3 General and administrative 1.2 1.7 4.3 Other operating expense, net 71.1 99.3 149.1 Total $ 73.2 $ 105.4 $ 166.7 The table below presents the exit cost liability activity for the Restructuring Programs as of December 31, 2020: Severance (In millions) Balance as of December 31, 2019 $ 5.6 Expenses recognized 6.0 Cash payments (6.7) Balance as of December 31, 2020 $ 4.9 Liabilities as of December 31, 2020 associated with total exit cost reserves relate to severance. The severance liability is included in Accrued expenses in the Consolidated Balance Sheets. (1) TreeHouse 2020 In the third quarter of 2017, the Company announced TreeHouse 2020, a program that was intended to accelerate long-term growth through optimization of our manufacturing network, transformation of our mixing centers and warehouse footprint, and leveraging of systems and processes to drive performance. The Company’s workstreams related to these activities and selling, general, and administrative cost reductions were intended to increase our capacity utilization, expand operating margins, and streamline our plant structure to optimize our supply chain. This program was completed in 2020. The key information regarding the Company's announced plant closures during the periods presented are as follows: The Company announced the closure of its Visalia, California Pretzels facility within the Snacking & Beverages segment in 2018, and the closure was completed in the first quarter of 2019. Total costs to close this facility were $22.1 million and are classified within Other operating expense, net in the Consolidated Statements of Operations. Additionally, the Company completed the closure of its Omaha, Nebraska Corporate office during the first quarter of 2019. Expenses associated with the Company's Dothan, Alabama; Battle Creek, Michigan; and Minneapolis, Minnesota facility closures are classified within Net loss from discontinued operations. Total costs to close these three facilities were $29.7 million. Refer to Note 7 for additional information. Below is a summary of the overall TreeHouse 2020 program costs by type: Year Ended December 31, Cumulative Costs Total Expected 2020 2019 2018 (In millions) Asset-related $ 0.2 $ 2.9 $ 9.2 $ 45.3 $ 45.3 Employee-related 4.1 10.8 36.2 60.2 60.2 Other costs 36.2 75.8 73.0 194.3 194.3 Total $ 40.5 $ 89.5 $ 118.4 $ 299.8 $ 299.8 For the years ended December 31, 2020, 2019, and 2018, asset-related primarily consisted of accelerated depreciation; employee-related costs primarily consisted of dedicated project employee cost, severance, and retention; and other costs primarily consisted of consulting costs. Asset-related costs are included in Cost of sales while employee-related and other costs are primarily included in Other operating expense, net in the Consolidated Statements of Operations. (2) Structure to Win In the first quarter of 2018, the Company announced an operating expenses improvement program ("Structure to Win") designed to align our organizational structure with strategic priorities. The program was intended to drive operational effectiveness, cost reduction, and position the Company for growth with a focus on a lean customer-centric go-to-market team, centralized supply chain, and streamlined administrative functions. This program was completed in 2020. Below is a summary of costs by type associated with the Structure to Win program: Year Ended December 31, Cumulative Costs Total Expected Costs 2020 2019 2018 (In millions) Asset-related $ — $ 1.8 $ 2.1 $ 4.0 $ 4.0 Employee-related 9.4 4.8 21.4 35.5 35.5 Other costs 23.3 9.3 20.6 53.2 53.2 Total $ 32.7 $ 15.9 $ 44.1 $ 92.7 $ 92.7 In the first quarter of 2020, the Company changed how it manages its business, allocates resources, and goes to market, which resulted in modifications to its organizational and segment structure. Transition expenses related to the reorganization, which primarily relate to dedicated employee cost, severance, and consulting are included within Structure to Win. In connection with this reorganization, the Company increased the total expected costs for the Structure to Win program from $60.4 million to $92.7 million during the year ended December 31, 2020. For the years ended December 31, 2020, 2019, and 2018, asset-related costs primarily consisted of accelerated depreciation, employee-related costs primarily consisted of severance and retention, and other costs primarily consisted of consulting services. Asset-related costs are included in General and administrative expense and the employee-related and other costs are included in Other operating expense, net of the Consolidated Statements of Operations. The Company reduced its Corporate office space in Oak Brook, Illinois and completed the closure of its St. Louis, Missouri Corporate office during the fourth quarter of 2020 and the second quarter of 2019, respectively. Other Restructuring and Plant Closing Costs — The Company continually analyzes its plant network to align operations with the current and future needs of its customers. Facility closure decisions are made when the Company identifies opportunities to lower production costs or eliminate excess manufacturing capacity while maintaining a competitive cost structure, service levels, and product quality. Expenses associated with facility closures are primarily aggregated in Other operating expense, net of the Consolidated Statements of Operations, with the exception of asset-related costs, which are recorded in Cost of sales. Below is a summary of costs by type associated with the other restructuring and plant closing costs: Year Ended December 31, 2018 (In millions) Asset-related $ 1.3 Other closure costs 0.3 Total $ 1.6 For the year ended December 31, 2018, asset-related costs primarily consisted of inventory dispositions and other closure costs primarily consisted of third-party costs. Asset-related costs are included in Cost of sales and other closure costs are recorded in Other operating expense, net in the Consolidated Statements of Operations. There were no costs associated with other restructuring and plant closing costs for the years ended December 31, 2020 and 2019. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | 4. LEASES The Company has changed its method of accounting for leases effective January 1, 2019 due to the adoption of ASU 2016-02, Leases (Topic 842), using the modified retrospective transition method. Under this transition method, financial results reported in periods prior to 2019 are unchanged. The Company has operating and finance leases for manufacturing facilities, warehouses and distribution centers, office space, and certain equipment. Remaining lease terms for these leases range from 1 year to 13 years. Some of the Company’s leases include options to extend the leases for up to 28 years, and some include options to terminate the leases within 1 year. The Company does not record leases with an initial term of 12 months or less on the balance sheet. Expense for these short-term leases is recognized on a straight-line basis over the lease term. Supplemental balance sheet information related to leases was as follows: December 31, Balance Sheet Classification 2020 2019 (In millions) Assets Operating Operating lease right-of-use assets $ 160.7 $ 175.3 Finance Property, plant, and equipment, net 3.9 3.9 Total assets $ 164.6 $ 179.2 Liabilities Current liabilities Operating Accrued expenses $ 33.8 $ 32.0 Finance Current portion of long-term debt 1.6 1.3 Total current liabilities 35.4 33.3 Noncurrent liabilities Operating Operating lease liabilities 144.5 158.5 Finance Long-term debt 2.5 2.6 Total noncurrent liabilities 147.0 161.1 Total lease liabilities $ 182.4 $ 194.4 Right-of-use assets and their corresponding lease liabilities are measured and recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. Discount Rates The majority of the Company's leases do not provide an implicit rate; therefore, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments for those leases. The Company has elected the practical expedient to apply discount rates to its lease portfolio based on the portfolio approach. The Company grouped the leases into portfolios by remaining lease term. The weighted-average discount rates for the Company's operating and finance leases are as follows: December 31, Weighted-average discount rate 2020 2019 Operating leases 4.5 % 4.7 % Finance leases 3.1 % 3.5 % Lease Payments The Company includes lease payments under options to extend or terminate the lease in the measurement of the right-of-use asset and lease liability when it is reasonably certain that it will exercise such options. For operating leases, lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Fixed lease costs represent the explicitly quantified lease payments prescribed by the lease agreement and are included in the measurement of the right-of-use asset and corresponding lease liability. Variable lease payments that depend on an index or a rate are included in the calculation of the right-of-use asset and lease liability based on the index or rate at lease commencement. Other variable lease payments such as those that depend on the usage or performance of an underlying asset are not included in the measurement of the right-of-use asset or lease liability. The Company has elected the practical expedient to combine lease and nonlease components into a single component for all of its leases. The weighted-average remaining lease term of the Company's operating and finance leases are as follows: December 31, Weighted-average remaining lease term 2020 2019 Operating leases 7.4 years 7.9 years Finance leases 3.2 years 3.2 years The components of lease expense were as follows: Year Ended December 31, Statement of Operations Classification 2020 2019 (In millions) Operating lease cost Cost of sales and General and administrative $ 42.5 $ 46.6 Finance lease cost: Amortization of right-of-use assets Cost of sales and General and administrative 1.6 1.8 Interest on lease liabilities Interest expense 0.1 0.1 Total finance lease cost 1.7 1.9 Variable lease cost (1) Cost of sales and General and administrative 17.4 9.3 Net lease cost $ 61.6 $ 57.8 (1) Includes short-term leases, which are immaterial. Rent expense under operating leases was $51.6 million for the year ended December 31, 2018. As of December 31, 2020, future maturities of lease liabilities were as follows: Operating Leases (1) Finance Leases (In millions) 2021 $ 40.2 $ 1.7 2022 35.3 1.2 2023 26.8 0.7 2024 20.3 0.5 2025 16.2 0.2 Thereafter 75.4 — Total lease payments 214.2 4.3 Less: Interest (35.9) (0.2) Present value of lease liabilities $ 178.3 $ 4.1 (1) Operating lease payments include $3.3 million related to options to extend lease terms that are reasonably certain of being exercised. Other information related to leases were as follows: Year Ended December 31, 2020 2019 (In millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 40.6 $ 42.0 Operating cash flows from finance leases 0.1 0.1 Financing cash flows from finance leases 1.8 1.9 |
Leases | 4. LEASES The Company has changed its method of accounting for leases effective January 1, 2019 due to the adoption of ASU 2016-02, Leases (Topic 842), using the modified retrospective transition method. Under this transition method, financial results reported in periods prior to 2019 are unchanged. The Company has operating and finance leases for manufacturing facilities, warehouses and distribution centers, office space, and certain equipment. Remaining lease terms for these leases range from 1 year to 13 years. Some of the Company’s leases include options to extend the leases for up to 28 years, and some include options to terminate the leases within 1 year. The Company does not record leases with an initial term of 12 months or less on the balance sheet. Expense for these short-term leases is recognized on a straight-line basis over the lease term. Supplemental balance sheet information related to leases was as follows: December 31, Balance Sheet Classification 2020 2019 (In millions) Assets Operating Operating lease right-of-use assets $ 160.7 $ 175.3 Finance Property, plant, and equipment, net 3.9 3.9 Total assets $ 164.6 $ 179.2 Liabilities Current liabilities Operating Accrued expenses $ 33.8 $ 32.0 Finance Current portion of long-term debt 1.6 1.3 Total current liabilities 35.4 33.3 Noncurrent liabilities Operating Operating lease liabilities 144.5 158.5 Finance Long-term debt 2.5 2.6 Total noncurrent liabilities 147.0 161.1 Total lease liabilities $ 182.4 $ 194.4 Right-of-use assets and their corresponding lease liabilities are measured and recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. Discount Rates The majority of the Company's leases do not provide an implicit rate; therefore, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments for those leases. The Company has elected the practical expedient to apply discount rates to its lease portfolio based on the portfolio approach. The Company grouped the leases into portfolios by remaining lease term. The weighted-average discount rates for the Company's operating and finance leases are as follows: December 31, Weighted-average discount rate 2020 2019 Operating leases 4.5 % 4.7 % Finance leases 3.1 % 3.5 % Lease Payments The Company includes lease payments under options to extend or terminate the lease in the measurement of the right-of-use asset and lease liability when it is reasonably certain that it will exercise such options. For operating leases, lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Fixed lease costs represent the explicitly quantified lease payments prescribed by the lease agreement and are included in the measurement of the right-of-use asset and corresponding lease liability. Variable lease payments that depend on an index or a rate are included in the calculation of the right-of-use asset and lease liability based on the index or rate at lease commencement. Other variable lease payments such as those that depend on the usage or performance of an underlying asset are not included in the measurement of the right-of-use asset or lease liability. The Company has elected the practical expedient to combine lease and nonlease components into a single component for all of its leases. The weighted-average remaining lease term of the Company's operating and finance leases are as follows: December 31, Weighted-average remaining lease term 2020 2019 Operating leases 7.4 years 7.9 years Finance leases 3.2 years 3.2 years The components of lease expense were as follows: Year Ended December 31, Statement of Operations Classification 2020 2019 (In millions) Operating lease cost Cost of sales and General and administrative $ 42.5 $ 46.6 Finance lease cost: Amortization of right-of-use assets Cost of sales and General and administrative 1.6 1.8 Interest on lease liabilities Interest expense 0.1 0.1 Total finance lease cost 1.7 1.9 Variable lease cost (1) Cost of sales and General and administrative 17.4 9.3 Net lease cost $ 61.6 $ 57.8 (1) Includes short-term leases, which are immaterial. Rent expense under operating leases was $51.6 million for the year ended December 31, 2018. As of December 31, 2020, future maturities of lease liabilities were as follows: Operating Leases (1) Finance Leases (In millions) 2021 $ 40.2 $ 1.7 2022 35.3 1.2 2023 26.8 0.7 2024 20.3 0.5 2025 16.2 0.2 Thereafter 75.4 — Total lease payments 214.2 4.3 Less: Interest (35.9) (0.2) Present value of lease liabilities $ 178.3 $ 4.1 (1) Operating lease payments include $3.3 million related to options to extend lease terms that are reasonably certain of being exercised. Other information related to leases were as follows: Year Ended December 31, 2020 2019 (In millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 40.6 $ 42.0 Operating cash flows from finance leases 0.1 0.1 Financing cash flows from finance leases 1.8 1.9 |
Receivables Sales Program
Receivables Sales Program | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Receivables Sales Program | 5. RECEIVABLES SALES PROGRAM In December 2017 and June 2019, the Company entered into agreements to sell certain trade accounts receivable to two unrelated, third-party financial institutions (collectively, the "Receivables Sales Program"). The agreements can be terminated by either party with 60 days' notice. The Company has no retained interest in the receivables sold under the Receivables Sales Program; however, under the agreements the Company does have collection and administrative responsibilities for the sold receivables. Under the Receivables Sales Program, the maximum amount of receivables that may be sold at any time is $300.0 million. The following table includes the outstanding amount of accounts receivable sold under the Receivables Sales Program and the amount collected but not yet remitted to the financial institutions: December 31, 2020 2019 (In millions) Outstanding accounts receivable sold $ 284.3 $ 243.0 Collections not remitted to financial institutions 202.8 158.3 Receivables sold under the Receivables Sales Program are de-recognized from the Company's Consolidated Balance Sheet at the time of the sale and the proceeds from such sales are reflected as a component of the change in receivables in the operating activities section of the Consolidated Statements of Cash Flows. The amount collected but not yet remitted to the financial institutions is included in Accounts payable in the Consolidated Balance Sheets. The loss on sale of receivables was $2.4 million, $4.3 million, and $3.8 million for the years ended December 31, 2020, 2019, and 2018, respectively, and is included in Other expense, net in the Consolidated Statements of Operations. The Company has not recognized any servicing assets or liabilities as of December 31, 2020 or December 31, 2019, as the fair value of the servicing arrangement as well as the fees earned were not material to the financial statements. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | 6. INVENTORIES December 31, 2020 2019 (In millions) Raw materials and supplies $ 231.0 $ 205.5 Finished goods 367.6 338.5 Total inventories $ 598.6 $ 544.0 |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | 7. ACQUISITIONS AND DIVESTITURES Acquisitions Pasta Acquisition On December 11, 2020, the Company completed the acquisition of the majority of the U.S. branded pasta portfolio as well as a manufacturing facility in St. Louis, Missouri of Riviana Foods, Inc. ("Riviana Foods"), a subsidiary of Ebro Foods, S.A. ("Ebro Foods") for a purchase price of approximately $239.2 million in cash, subject to customary purchase price adjustments. Ebro Foods is a Spanish-based multinational food group operating primarily in the pasta and rice sectors. The acquisition includes the following regional brands: Skinner, No Yolks, American Beauty, Creamette, San Giorgio, Prince, Light ‘n Fluffy, Mrs. Weiss’, Wacky Mac, P&R Procino-Rossi, and New Mill. Additionally, the Company and Riviana Foods have a mutual put or call right to acquire or sell, respectively, the equipment utilized in the Riviana Foods Fresno, California facility for $5.0 million by December 31, 2021. The acquisition is expected to strengthen the Company's portfolio and expand its scale to better serve its national and regional customers. The acquisition was funded from the Company’s existing cash resources. The pasta acquisition was accounted for under the acquisition method of accounting and the results of operations were included in our Consolidated Financial Statements from the date of acquisition in the Meal Preparation segment. Included in the Company’s Consolidated Statements of Operations are the pasta acquisition’s net sales of approximately $11.6 million and loss before income taxes of $(0.9) million from the date of acquisition through December 31, 2020. The Company incurred approximately $6.3 million in acquisition-related costs. These costs are included in General and administrative expense of the Consolidated Statements of Operations. The following table summarizes the preliminary purchase price allocation of the fair value of net tangible and intangible assets acquired and liabilities assumed: (In millions) Inventories $ 20.0 Property, plant, and equipment, net 48.2 Customer relationships 68.0 Trade names 43.0 Formulas/recipes 2.3 Goodwill 57.8 Operating lease right-of-use assets 0.1 Assets acquired 239.4 Assumed liabilities (0.2) Total purchase price $ 239.2 The Company allocated the intangible assets acquired to the Meal Preparation segment which included $68.0 million of customer relationships with an estimated life of 20 years, $43.0 million of trade names with an estimated life of 20 years, and $2.3 million of formulas/recipes with estimated life of 5 years. The aforementioned intangible assets will be amortized over their expected useful lives. The Company increased the cost of acquired inventories by approximately $3.1 million and expensed $2.1 million as a component of Cost of sales during the year ended December 31, 2020. The Company has allocated $57.8 million of goodwill to the Meal Preparation segment. Goodwill arises principally as a result of expansion opportunities of its scale to better serve its regional and national customers and plant operation synergies across its legacy Pasta category. The goodwill resulting from this acquisition is tax deductible. The purchase price allocation in the table above is preliminary and subject to the finalization of the Company’s valuation analysis, including a working capital adjustment, and the option to exercise its right to acquire the $5.0 million equipment utilized in the Fresno, California facility. The fair values for customer relationships at the acquisition date were determined using the excess earnings method under the income approach. Trade name fair values were determined using the relief from royalty method, while the fair value of formulas/recipes was determined using the cost approach. Real property and personal property fair values were determined using the cost approach. The fair value measurements of intangible assets are based on significant unobservable inputs, and thus represent Level 3 inputs. Significant assumptions used in assessing the fair values of intangible assets include discounted future cash flows, customer attrition rates, and royalty rates. The following unaudited pro forma information shows the results of operations for the Company as if its pasta acquisition had been completed as of January 1, 2019. Adjustments have been made for the pro forma effects of depreciation and amortization of tangible and intangible assets recognized as part of the business combination, the amortization of the inventory fair value step-up, acquisition-related costs, and related income taxes. Excluded from the 2020 pro forma results are $6.3 million of acquisition-related costs incurred by the Company in connection with the acquisition as they have been included in the 2019 pro forma results. The pro forma results may not necessarily reflect actual results of operations that would have been achieved, nor are they necessarily indicative of future results of operations. Year Ended December 31, 2020 2019 (Unaudited, in millions) Pro forma net sales from continuing operations $ 4,550.4 $ 4,454.1 Pro forma net income (loss) from continuing operations 83.4 (106.3) Refrigerated Dough Acquisition On September 1, 2020, the Company completed an acquisition of a refrigerated dough business for a purchase price of $17.5 million, which included the recognition of $10.7 million of goodwill within the Meal Preparation segment. Discontinued Operations Snacks During the second quarter of 2019, due to changes in market price expectations for the sale of the Company's Snacks division, the Company assessed the recoverability of the carrying value of the long-lived assets associated with the division. This assessment resulted in total long-lived asset impairment losses of $66.5 million, comprised of $63.2 million of property, plant, and equipment impairment losses and $3.3 million of intangible asset impairment losses. These losses result from the estimated fair value of the Snacks asset group, which was determined by its estimated discounted cash flows. These cash flows represent Level 3 inputs under ASC 820. These impairment charges are included in Net loss from discontinued operations in the Consolidated Statements of Operations. On August 1, 2019, the Company completed the sale of its Snacks division to Atlas Holdings, LLC. ("Atlas") for $90 million in cash, subject to customary purchase price adjustments. The Company classified the proceeds within Net cash (used in) provided by investing activities - discontinued operations and used the net proceeds of the sale to pay down debt. The Company recognized a non-cash pre-tax loss on the transaction upon closing of $98.4 million, which is recognized as a component of Net loss from discontinued operations in the Consolidated Statements of Operations. For tax purposes, the sale has resulted in a capital loss of $586.2 million. As a result, we have established a deferred tax asset of $149.1 million. A full valuation allowance was recorded against the deferred tax asset as we have not met the accounting requirements for recognition of a benefit at this time. The sale of this business is part of the Company's portfolio optimization strategy. The Snacks division operated three plants located in Robersonville, North Carolina; El Paso, Texas; and Dothan, Alabama. A fourth plant in Minneapolis, Minnesota was not included with the sale and closed during the third quarter of 2019. The Company entered into a Transition Services Agreement ("TSA") with Atlas, which is designed to ensure and facilitate an orderly transfer of business operations. The services provided under the TSA terminated August 1, 2020. The income received under the TSA was not material for the years ended December 31, 2020 and 2019 and is primarily classified within General and administrative expenses or Cost of sales in the Company's Consolidated Statements of Operations depending on the functions being supported by the Company. Ready-to-eat Cereal On May 1, 2019, the Company entered into a definitive agreement to sell its Ready-to-eat ("RTE") Cereal business to Post Holdings, Inc. ("Post"), which until that time had been a component of the Meal Preparation reporting segment. The sale of this business is part of the Company's portfolio optimization strategy. On December 19, 2019, the Federal Trade Commission objected to the sale to Post. On January 13, 2020, the sale to Post was terminated and the Company announced its intention to pursue a sale of the RTE Cereal business to an alternative buyer. The Company continues to market the business and is committed to a plan of sale to dispose of the business. The RTE Cereal business continues to be classified as a discontinued operation as of December 31, 2020. Expected disposal losses of $51.2 million and $74.5 million were recognized as asset impairment charges during the years ended December 31, 2020 and 2019, respectively, within Net loss from discontinued operations. The expected disposal loss for the RTE Cereal business is remeasured each period at the lower of carrying value or estimated fair value less costs to sell and is included in the valuation allowance in the balance sheet. Completion of the sale may be for amounts that could be significantly different from the current fair value estimate. The Company's estimate of fair value will be evaluated and recognized each reporting period until the divestiture is complete. The Company has reflected the Snacks division (through the date of sale) and RTE Cereal business as discontinued operations for all periods presented. Unless otherwise noted, amounts and disclosures throughout these Notes to Consolidated Financial Statements relate to the Company's continuing operations. Results of discontinued operations are as follows: Year Ended December 31, 2020 2019 2018 (In millions) Net sales $ 220.8 $ 638.0 $ 1,226.6 Cost of sales 193.4 619.5 1,167.4 Selling, general, administrative and other operating expenses 17.3 55.2 78.7 Asset impairment 51.2 141.0 — Loss on sale of business — 98.4 — Other operating expense, net 0.8 — — Operating loss from discontinued operations (41.9) (276.1) (19.5) Interest and other expense 3.4 7.7 11.7 Income tax benefit (9.9) (33.1) (13.0) Net loss from discontinued operations $ (35.4) $ (250.7) $ (18.2) Assets and liabilities of discontinued operations presented in the Consolidated Balance Sheets as of December 31, 2020 and 2019 include the following: December 31, 2020 2019 (In millions) Inventories $ 33.3 $ 41.6 Property, plant, and equipment, net 65.9 64.4 Operating lease right-of-use assets 5.1 7.5 Goodwill 53.5 53.5 Intangible assets 38.6 38.6 Valuation allowance (125.7) (74.5) Total assets of discontinued operations $ 70.7 $ 131.1 Accrued expenses and other liabilities $ 1.1 $ 8.3 Operating lease liabilities 5.6 8.2 Total liabilities of discontinued operations $ 6.7 $ 16.5 Other Divestitures In-Store Bakery Facilities During the fourth quarter of 2019, the Company reached the decision to sell two of its In-Store Bakery facilities located in Fridley, Minnesota and Lodi, California, which manufacture breads, rolls, and cakes for in-store retail bakeries and food-away-from-home customers. These two facilities were included within the Snacking & Beverages reporting segment. The associated assets met the held for sale accounting criteria as of December 31, 2019 and were classified accordingly in the Consolidated Balance Sheets. These two facilities did not meet the criteria to be presented as a discontinued operation. The disposal group was measured at fair value, and the Company recognized the expected disposal loss as an impairment charge of $41.1 million during the year ended December 31, 2019, as the fair value was determined to be less than the carrying value of the associated assets, including the related goodwill. The impairment is recognized within Asset impairment in the Consolidated Statements of Operations. On January 10, 2020, the Company entered into a definitive agreement to sell these facilities. On April 17, 2020, the sale of these facilities was completed for $24.0 million, subject to customary purchase price adjustments. The cash proceeds were classified within Net cash used in investing activities - continuing operations. The Company recognized a loss upon divestiture of $0.3 million within Other operating expense, net in the Consolidated Statements of Operations during the year ended December 31, 2020. The following table represents detail of assets held for sale as of December 31, 2019: December 31, 2019 (In millions) Inventories $ 9.4 Property, plant, and equipment, net 40.9 Goodwill 5.7 Intangible assets, net 9.4 Valuation allowance (41.1) Total assets held for sale $ 24.3 The Company also had $2.7 million of assets classified as held for sale as of December 31, 2019 related to the closure of the Minneapolis, Minnesota facility. The sale of these assets was completed during the first quarter of 2020. McCann's Business On July 16, 2018, the Company completed the divestiture of its McCann's business. The McCann's business produced steel cut Irish oatmeal and was previously reported within the Meal Preparation segment. This divestiture did not meet the criteria to be presented as a discontinued operation. The Company recognized a gain upon divestiture of $14.3 million within Other operating expense, net in the Consolidated Statements of Operations during the year ended December 31, 2018. |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | 8. PROPERTY, PLANT, AND EQUIPMENT December 31, 2020 2019 (In millions) Land $ 57.4 $ 53.7 Buildings and improvements 442.5 401.2 Machinery and equipment 1,355.0 1,230.1 Construction in progress 57.0 73.8 Total 1,911.9 1,758.8 Less accumulated depreciation (841.9) (713.6) Property, plant, and equipment, net $ 1,070.0 $ 1,045.2 Asset Impairment We evaluate property, plant, and equipment, operating lease right-of-use assets, and finite lived intangible assets for impairment when circumstances indicate that their carrying values may not be recoverable. Indicators of impairment include deteriorations in operating cash flows, the anticipated sale or disposal of an asset group, and other significant changes in business conditions. During 2019, our assessment indicated an impairment in our Cookies and Dry Dinners asset groups, within the Snacking & Beverages and Meal Preparation segments, respectively, driven by the historical and forecasted performance of these businesses. As a result, we recognized $42.8 million of property, plant, and equipment impairment losses and $45.2 million of finite lived intangible asset impairment. The impairment charges are included in Asset impairment in the Consolidated Statements of Operations. Impairment charges are measured by comparing the carrying values of the asset groups to their estimated fair values. The fair value of these assets were based on expected future cash flows using Level 3 inputs under ASC 820. We can provide no assurance regarding the prospect of additional impairment charges in future periods. Depreciation expense was $132.5 million, $136.5 million, and $145.0 million in 2020, 2019, and 2018, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 9. GOODWILL AND INTANGIBLE ASSETS Goodwill As a result of the changes in organizational structure completed in the first quarter of 2020, the Company now has the following two reportable segments: Meal Preparation and Snacking & Beverages. See Note 21 for additional information regarding the change in segment structure. In connection with the change in organizational structure completed in the first quarter of 2020, the Company allocated goodwill and accumulated impairment loss balances as of January 1, 2020 between reporting units using a relative fair value allocation approach. The change was considered a triggering event indicating a test for goodwill impairment was required as of January 1, 2020. The Company performed the impairment test, which did not result in impairment losses. Changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2019 are as follows: Meal Preparation Snacking & Beverages Total (In millions) Balance at January 1, 2019, before accumulated impairment losses $ 1,261.6 $ 890.8 $ 2,152.4 Accumulated impairment losses (11.5) (33.0) (44.5) Balance at January 1, 2019 1,250.1 857.8 2,107.9 Reclassification to assets held for sale (1) — (5.7) (5.7) Foreign currency exchange adjustments 2.9 2.2 5.1 Balance at December 31, 2019 1,253.0 854.3 2,107.3 Acquisitions 68.5 — 68.5 Foreign currency exchange adjustments 1.7 1.2 2.9 Balance at December 31, 2020 $ 1,323.2 $ 855.5 $ 2,178.7 (1) Relates to the reclassification of goodwill allocated to the In-Store Bakery facilities divestiture. Refer to Note 7 for additional information. The Company performed the annual impairment assessment on goodwill as of December 31, 2020 and 2019, noting no impairment losses. Approximately $437.2 million of goodwill is deductible for tax purposes. Intangible Assets The gross carrying amounts and accumulated amortization of intangible assets as of December 31, 2020 and 2019 are as follows. December 31, 2020 2019 Weighted Average Life Remaining (yrs.) Gross Accumulated Net Gross Accumulated Net (In millions) Intangible assets with finite lives: Customer-related 9.9 $ 848.5 $ (406.4) $ 442.1 $ 778.1 $ (355.2) $ 422.9 Contractual agreements — 0.5 (0.5) — 0.5 (0.5) — Trademarks 15.0 96.2 (31.7) 64.5 53.0 (27.1) 25.9 Formulas/recipes 6.0 25.3 (22.1) 3.2 22.1 (19.2) 2.9 Computer software 7.0 194.8 (112.0) 82.8 179.0 (98.0) 81.0 Total finite lived intangibles 10.0 1,165.3 (572.7) 592.6 1,032.7 (500.0) 532.7 Intangible assets with indefinite lives: Trademarks 22.4 — 22.4 22.0 — 22.0 Total intangible assets $ 1,187.7 $ (572.7) $ 615.0 $ 1,054.7 $ (500.0) $ 554.7 The Company performed the annual impairment assessment on indefinite-lived intangibles as of December 31, 2020 and 2019, resulting in no impairment losses. The fair value of one of our trademarks with a book value of $16.4 million as of December 31, 2020 exceeds its book value by 12%. Based on our plans for this product line, we do not anticipate impairment of this trademark in the foreseeable future. However, if our revenue and profit expectations are not met or certain factors outside of our control, such as discount rates, change then this trademark could become impaired. Changes in our estimates or any of our other assumptions used in our analysis could result in a different conclusion. Asset Impairment During 2019, the Company recognized $45.2 million of finite lived intangible asset impairment. Refer to Note 8 for additional information. There were no other impairments related to finite lived intangibles. Considerable management judgment is necessary to evaluate the impact of operating changes and to estimate future cash flows. Assumptions used in our impairment evaluations, such as forecasted growth rates and our cost of capital, are consistent with our internal projections and operating plans. Estimated amortization expense on intangible assets for the next five years is as follows: (In millions) 2021 $ 71.1 2022 68.7 2023 65.8 2024 65.3 2025 64.5 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | 10. ACCRUED EXPENSES Accrued expenses consist of: December 31, 2020 2019 (In millions) Payroll and benefits $ 90.8 $ 50.4 Trade promotion liabilities 39.6 37.9 Operating lease liabilities 33.8 32.0 Interest 20.4 20.0 Taxes 6.8 14.5 Health insurance, workers' compensation, and other insurance costs 20.2 23.9 Derivative contracts 98.1 57.2 Other accrued liabilities 30.9 37.3 Total $ 340.6 $ 273.2 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. INCOME TAXES The components of Income (loss) before income taxes are as follows: Year Ended December 31, 2020 2019 2018 (In millions) Domestic $ 9.8 $ (154.4) $ (72.5) Foreign 7.3 (1.4) 14.9 Income (loss) before income taxes $ 17.1 $ (155.8) $ (57.6) The following table presents the components of the 2020, 2019, and 2018 provision for income taxes: Year Ended December 31, 2020 2019 2018 (In millions) Current: Federal $ (95.7) $ 13.2 $ (9.0) State 1.6 2.9 5.5 Foreign (1.4) 1.7 8.9 Total current (95.5) 17.8 5.4 Deferred: Federal 69.8 (48.4) (6.0) State (2.9) (11.8) (6.6) Foreign (3.5) (3.1) (4.2) Total deferred 63.4 (63.3) (16.8) Total income tax benefit $ (32.1) $ (45.5) $ (11.4) The following is a reconciliation of income tax benefit computed at the U.S. federal statutory tax rate to the income tax benefit reported in the Consolidated Statements of Operations: Year Ended December 31, 2020 2019 2018 (In millions) Tax at statutory rate $ 3.6 $ (32.7) $ (12.1) State income taxes (1.0) (7.1) (0.3) Tax benefit of cross-border intercompany financing structure (1.4) (2.1) (2.3) Repatriation of intangibles — (4.6) — CARES Act (30.3) — — Disallowed officers' compensation 2.6 1.6 6.3 Excess tax benefits related to stock-based compensation 1.7 (0.1) 0.8 Transition tax — (1.9) (0.4) Other tax credits (0.9) (0.9) (1.3) Valuation allowance (6.2) 3.4 (1.1) Uncertain tax positions (2.5) (2.5) (2.9) Return-to-provision 0.2 0.1 (0.6) Indemnification 1.1 0.3 (0.4) Gain on divestiture — — 2.2 Remeasurement of deferred tax assets/liabilities — — (1.0) Other, net 1.0 1.0 1.7 Total provision for income taxes $ (32.1) $ (45.5) $ (11.4) The tax effects of temporary differences giving rise to deferred income tax assets and liabilities were: December 31, 2020 2019 (In millions) Deferred tax assets: Pension and postretirement benefits $ 13.6 $ 16.7 Accrued liabilities 23.5 21.4 Stock compensation 11.8 12.6 Lease liabilities 46.2 51.4 Interest limitation carryover 3.9 30.3 Loss and credit carryovers 213.6 201.7 Unrealized foreign exchange loss 21.3 15.7 Other 12.6 11.9 Total deferred tax assets 346.5 361.7 Valuation allowance (161.0) (167.9) Total deferred tax assets, net of valuation allowance 185.5 193.8 Deferred tax liabilities: Fixed assets and intangible assets (291.3) (238.2) Lease assets (45.1) (50.5) Inventory reserves — (2.5) Total deferred tax liabilities (336.4) (291.2) Net deferred income tax liability $ (150.9) $ (97.4) The following table details the Company's tax attributes primarily related to net operating losses, tax credits, and capital losses for which it has recorded deferred tax assets: Tax Attributes Gross Attribute Amount Net Attribute Amount Expiration Years (In millions) U.S. net operating losses $ 2.4 $ 0.5 2034 Foreign net operating losses 32.1 8.3 2028 – 2040 State net operating losses 257.0 11.3 2021 – 2040 Federal credits — 19.4 2027 – 2040 State credits — 16.7 2021 – 2034 Federal capital loss 586.2 123.1 2024 State capital loss 586.2 26.0 2024 Other 8.3 2022 – 2036 Total $ 213.6 The Company assessed the realizability of its deferred tax assets and has recorded valuation allowances for certain foreign non-capital loss carryforwards, state net operating loss carryforwards, and state tax credit carryforwards that will more likely than not expire unused. In addition, as described in Note 7, the Company has recorded a full valuation allowance against the deferred tax asset of $149.1 million it established for its capital loss resulting from the sale of the Snacks division. The Company or one of its subsidiaries files income tax returns in the U.S., Canada, Italy, the Netherlands, and various U.S. states. In the U.S. federal jurisdiction, the Company is open to examination for the tax year ended December 31, 2014 and forward; for Canadian purposes, the Company is open to examination for the tax year ended December 31, 2011 and forward; for Italian purposes, the Company is open to examination for the tax years ended December 31, 2016 and forward; and for the various U.S. states the Company is generally open to examination for the tax year ended December 31, 2015 and forward. The Internal Revenue Service ("IRS") is currently examining the TreeHouse Foods, Inc. & Subsidiaries’ 2019 tax year. Our Canadian operations are under exam by the Canadian Revenue Agency ("CRA") for tax years 2012 through 2015 and 2017 through 2018. These examinations are expected to be completed in 2021. The Company has examinations in process with various state taxing authorities, which are expected to be completed in 2021. During the year, the Company recorded adjustments to its unrecognized tax benefits. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Year Ended December 31, 2020 2019 2018 (In millions) Unrecognized tax benefits beginning balance $ 12.3 $ 17.3 $ 26.4 Additions (reductions) based on tax positions of prior years 2.4 (1.1) (0.6) Reductions resulting from dispositions — (1.1) — Reductions due to statute lapses (3.4) (2.8) (8.3) Reductions related to settlements with taxing authorities (0.7) (0.1) — Foreign currency translation 0.1 0.1 (0.2) Unrecognized tax benefits ending balance $ 10.7 $ 12.3 $ 17.3 Unrecognized tax benefits are included in Other long-term liabilities of the Consolidated Balance Sheets. Of the amount accrued at December 31, 2020 and 2019, $5.5 million and $3.4 million, respectively, would impact net income from continuing operations when settled. Of the amounts accrued at December 31, 2020 and 2019, $4.8 million and $9.9 million, respectively, relates to unrecognized tax benefits assumed in prior acquisitions, which have been indemnified by the previous owners. Management estimates that it is reasonably possible that the total amount of unrecognized tax benefits could decrease by as much as $5.1 million within the next 12 months, primarily as a result of the resolution of audits currently in progress and the lapsing of statutes of limitations. Approximately $2.0 million of the $5.1 million would affect net income when settled. The Company recognizes interest expense (income) and penalties related to unrecognized tax benefits in income tax expense. During the years ended December 31, 2020, 2019, and 2018, the Company recognized $(1.4) million, $(0.2) million, and $(0.2) million of interest and penalties in income tax expense from continuing operations, respectively. The Company has accrued approximately $2.4 million and $3.9 million for the payment of interest and penalties at December 31, 2020 and 2019, respectively, of which $1.7 million and $3.7 million is indemnified. On March 27, 2020, the CARES Act was signed into law, which features several tax provisions and other measures that assist businesses impacted by the economic effects of the COVID-19 pandemic. The significant tax provisions include an increase in the limitation of the tax deduction for interest expense from 30% to 50% of adjusted earnings in 2019 and 2020, a five-year carryback allowance for net operating losses ("NOLs") generated in tax years 2018-2020, increased charitable contribution limitations to 25% of taxable income in 2020, and a retroactive technical correction to the 2017 Tax Cuts and Jobs Act that makes qualified improvement property placed in service after December 31, 2017 eligible for bonus depreciation. The Company has recorded a $29.3 million income tax benefit related to the NOL carryback provisions of the CARES Act for the year ended December 31, 2020. During the first quarter of 2008, the Company entered into an intercompany financing structure that results in the recognition of certain foreign earnings subject to a low effective tax rate. For the years ended December 31, 2020, 2019, and 2018, the Company recognized a tax benefit of approximately $1.4 million. $2.1 million, and $2.3 million, respectively, related to this item. During the fourth quarter of 2020 the Company exited the intercompany financing structure. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 12. LONG-TERM DEBT December 31, 2020 2019 (In millions) Term Loan A $ 453.4 $ 458.4 Term Loan A-1 672.6 681.6 2022 Notes — 375.9 2024 Notes 602.9 602.9 2028 Notes 500.0 — Finance leases 4.1 3.9 Total outstanding debt 2,233.0 2,122.7 Deferred financing costs (18.3) (15.7) Less current portion (15.7) (15.3) Total long-term debt $ 2,199.0 $ 2,091.7 The scheduled maturities of outstanding debt, excluding deferred financing costs, at December 31, 2020 are as follows (in millions): 2021 $ 15.7 2022 15.2 2023 660.2 2024 608.4 2025 433.5 Thereafter 500.0 Total outstanding debt $ 2,233.0 Credit Agreement On December 1, 2017, the Company entered into the Second Amended and Restated Credit Agreement (the "Credit Agreement") which amends, restates, and replaces the Company’s prior credit agreement, dated as of February 1, 2016 (as amended from time to time prior to February 1, 2016, the "Prior Credit Agreement"). As amended, the senior unsecured credit facility includes a revolving credit facility (the "Revolving Credit Facility" or the "Revolver") and two term loans. The Credit Agreement (1) extended the maturity dates of the Revolving Credit Facility, Term Loan A, and Term Loan A-1, (2) resized the Revolver from $900 million to $750 million, (3) consolidated three term loans into two, (4) tightened pricing, and (5) modified the fee structure on the Revolving Credit Facility to now calculate based on the unused portion of the commitments under the Revolving Credit Facility rather than the total commitments under the Revolving Credit Facility. On June 11, 2018, the Company entered into Amendment No. 1 (the "Amendment") to the Credit Agreement. Under the Amendment, among other things, (i) the leverage covenant threshold increased through fiscal year 2019, (ii) the Company and the other loan parties secured the obligations with liens on substantially all of their personal property, and (iii) such liens will be released upon the Company’s leverage ratio being less than or equal to 4.00 to 1.00 no earlier than the fiscal quarter ended on December 31, 2019. The material terms and conditions under the Credit Agreement are otherwise substantially consistent with those contained in the Credit Agreement prior to the Amendment. In connection with this Amendment, $0.6 million in lender fees are amortized ratably through January 31, 2025 and $1.8 million of fees are amortized ratably through February 1, 2023. On August 26, 2019, the Company entered into Amendment No. 2 (the "Amendment") to the Credit Agreement. This Amendment permanently maintains the secured status of the credit facility and the maximum permitted leverage ratio at 4.5x. Absent the Amendment, the Credit Agreement was scheduled to return to unsecured status with a maximum permitted leverage ratio of 4.0x in the fourth quarter of 2019. The material terms and conditions under the Credit Agreement are otherwise substantially consistent with those contained in the Credit Agreement prior to the Amendment. The Company’s average interest rate on debt outstanding under its Credit Agreement for the year ended December 31, 2020 was 2.27%. Including the impact of the interest rate swap agreements in effect as of December 31, 2020, the average rate increased to 3.86%. Revolving Credit Facility — As of December 31, 2020, $727.1 million of the aggregate commitment of $750.0 million of the Revolving Credit Facility was available. Under the Credit Agreement, the Revolving Credit Facility matures on February 1, 2023. In addition, as of December 31, 2020, there were $22.9 million in letters of credit under the Revolving Credit Facility that were issued but undrawn, which have been included as a reduction to the calculation of available credit. Interest is payable quarterly or, if earlier, at the end of the applicable interest period in arrears on any outstanding borrowings under the Revolving Credit Facility. The interest rates applicable to the Revolving Credit Facility are based upon the Company’s consolidated net leverage ratio or the Company’s Corporate Credit Rating, whichever results in lower pricing, and are determined by either (i) LIBOR, plus a margin ranging from 1.20% to 1.70%, or (ii) a Base Rate (as defined in the Credit Agreement), plus a margin ranging from 0.20% to 0.70%. The unused fee on the Revolving Credit Facility is also based on the Company’s consolidated net leverage ratio or the Company’s Corporate Credit Rating, whichever results in lower pricing, and accrues at a rate ranging from 0.20% to 0.35%. The Credit Agreement is fully and unconditionally, as well as jointly and severally, guaranteed by our 100% owned direct and indirect domestic subsidiaries: Bay Valley Foods, LLC; Sturm Foods, Inc.; S.T. Specialty Foods, Inc.; Associated Brands, Inc.; TreeHouse Foods Services, LLC; Protenergy Holdings, Inc.; Protenergy Natural Foods, Inc.; TreeHouse Private Brands, Inc.; American Italian Pasta Company; Linette Quality Chocolates, Inc.; Ralcorp Frozen Bakery Products, Inc.; Cottage Bakery, Inc.; The Carriage House Companies, Inc. and certain other domestic subsidiaries that may become guarantors in the future, which are collectively known as the "Guarantor Subsidiaries." The Credit Agreement contains various financial and restrictive covenants and requires that the Company maintain a consolidated net leverage ratio of no greater than 4.50 to 1.0. The Credit Agreement also contains cross-default provisions which could result in the acceleration of payments in the event TreeHouse or the Guarantor Subsidiaries (i) fails to make a payment when due in respect of any indebtedness or guarantee having an aggregate principal amount greater than $75.0 million or (ii) fails to observe or perform any other agreement or condition related to such indebtedness or guarantee as a result of which the holder(s) of such debt are permitted to accelerate the payment of such debt. Term Loan A — On December 1, 2017, the Company entered into a $500 million term loan which amended and extended the Company’s existing term A loan. The maturity date is January 31, 2025. The interest rates applicable to Term Loan A are based upon the Company’s consolidated net leverage ratio or the Company’s Corporate Credit Rating, whichever results in lower pricing, and are determined by either (i) LIBOR, plus a margin ranging from 1.675% to 2.175%, or (ii) a Base Rate (as defined in the Credit Agreement), plus a margin ranging from 0.675% to 1.175%. Principal amortization payments are due on a quarterly basis and interest is payable quarterly or, if earlier, at the end of the applicable interest period in arrears on any outstanding borrowings under Term Loan A. Term Loan A is subject to substantially the same covenants as the Revolving Credit Facility, and also has the same Guarantor Subsidiaries. Term Loan A-1 — On December 1, 2017, the Company entered into a $900 million term loan which amended and extended the Company’s existing tranche A-1 and tranche A-2 term loans. The maturity date is February 1, 2023. The interest rates applicable to Term Loan A-1 are the same as those applicable to the Revolving Credit Facility (other than, for the avoidance of doubt, the unused fee). Principal amortization payments are due on a quarterly basis and interest is payable quarterly or, if earlier, at the end of the applicable interest period in arrears on any outstanding borrowing under Term Loan A-1. Term Loan A-1 is subject to substantially the same covenants as the Revolving Credit Facility, and has the same Guarantor Subsidiaries. 2022 Notes — The Company previously issued 2022 Notes. On August 26, 2020, the Company, through the trustee, issued a notice of redemption to redeem all of the $375.9 million outstanding principal of its 2022 Notes at a price of 100% of the principal amount, plus accrued and unpaid interest to, but not including, the redemption date (the "2022 Notes Redemption"). The 2022 Notes Redemption was completed on September 25, 2020. For the year ended December 31, 2020, the Company incurred a loss on extinguishment of debt totaling $1.2 million representing the write-off of deferred financing costs. 2024 Notes — On January 29, 2016, the Company completed an exempt offering under Rule 144A and Regulation S of the Securities Act of the 2024 Notes. The net proceeds from the issuance of the 2024 Notes (approximately $760.7 million after deducting issuance costs, providing an effective interest rate of 6.23%) were used to fund a portion of the purchase price of the Private Brands Business. Interest is payable on February 15 and August 15 of each year. The payments began on August 15, 2016. The 2024 Notes will mature on February 15, 2024. During the year ended December 31, 2018, the Company repurchased $24.1 million and $172.1 million of its 2022 Notes and 2024 Notes, respectively. The Company wrote off $2.4 million of debt issuance costs and recorded a loss of $4.2 million related to the repurchases totaling $6.6 million within Loss on extinguishment of debt of the Consolidated Statement of Operations. The Company may redeem some or all of the 2024 Notes upon not less than 30 nor more than 60 days' notice, at the applicable redemption prices described in the Indenture plus accrued and unpaid interest, if any, up to but not including the redemption date. In the event of certain change of control events, as described in the Indenture, the Company may be required to purchase the 2024 Notes from the holders at a purchase price of 101% of the principal amount plus any accrued and unpaid interest. 2028 Notes — On September 9, 2020, the Company completed its public offering of $500 million aggregate principal amount of the 2028 Notes. The 2028 Notes pay interest at the rate of 4.000% per annum and mature on September 1, 2028. Interest is payable on the 2028 Notes on March 1 and September 1 of each year, beginning March 1, 2021. The Company may redeem some or all of the 2028 Notes at any time prior to September 1, 2023 at a price equal to 100% of the principal amount of the 2028 Notes redeemed plus an applicable "make-whole" premium and accrued and unpaid interest to the redemption date. On or after September 1, 2023, the Company may redeem some or all of the 2028 Notes at redemption prices set forth in the Indenture, plus accrued and unpaid interest to the redemption date. In addition, at any time prior to September 1, 2023, the Company may redeem up to 40% of the 2028 Notes at a redemption price of 104.000% of the principal amount of the 2028 Notes redeemed, plus accrued and unpaid interest to the redemption date, with the net cash proceeds of certain equity offerings. Subject to certain limitations, in the event of a change of control of the Company, the Company will be required to make an offer to purchase the 2028 Notes at a purchase price equal to 101% of the principal amount of the 2028 Notes, plus accrued and unpaid interest to the date of purchase. The Company issued the 2024 Notes and 2028 Notes pursuant to a single base Indenture among the Company, the Guarantor Subsidiaries, and the Trustee. The Indenture provides, among other things, that the 2024 Notes and 2028 Notes will be senior unsecured obligations of the Company. The Company’s payment obligations under the 2024 Notes and 2028 Notes are fully and unconditionally, as well as joint and severally, guaranteed on a senior unsecured basis by the Guarantor Subsidiaries, in addition to any future domestic subsidiaries that guarantee or become borrowers under its credit facility or guarantee certain other indebtedness incurred by the Company or its restricted subsidiaries. The Indenture governing the 2024 Notes and 2028 Notes contains customary event of default provisions (including, without limitation, defaults relating to the failure to pay at final maturity or the acceleration of certain other indebtedness). If an event of default occurs and is continuing, the trustee under the Indenture or holders of at least 25% in principal amount of such notes may declare the principal amount and accrued and unpaid interest, if any, on all such notes to be due and payable. The Indenture also contains restrictive covenants that, among other things, limit the ability of the Company and the Guarantor Subsidiaries to: (i) incur additional indebtedness and issue certain preferred shares, (ii) make certain distributions, investments and other restricted payments, (iii) sell certain assets, (iv) agree to restrictions on the ability of restricted subsidiaries to make payments to the Company, (v) create liens, (vi) merge, consolidate or sell substantially all of the Company’s assets (vii) enter into certain transactions with affiliates, and (viii) engage in certain sale and leaseback transactions. The foregoing limitations are subject to exceptions as set forth in the Indenture. In addition, if in the future, the 2024 Notes or 2028 Notes have an investment grade credit rating by both Moody’s Investors Services, Inc. and Standard & Poor’s Ratings Services, certain of these covenants will, thereafter, no longer apply to the 2024 Notes or 2028 Notes for so long as the 2024 Notes or 2028 Notes are rated investment grade by the two rating agencies. Interest Rate Swap Agreements — As of December 31, 2020, the Company had entered into $875.0 million of long-term interest rate swap agreements to lock into a fixed LIBOR interest rate base. The swaps cover a period through February 28, 2025. Fair Value - At December 31, 2020, the aggregate fair value of the Company's total debt was $2,250.4 million and its carrying value was $2,228.9 million. At December 31, 2019, the aggregate fair value of the Company's total debt was $2,146.1 million and its carrying value was $2,118.8 million. The fair values of Term Loan A and Term Loan A-1 were estimated using present value techniques and market-based interest rates and credit spreads. The fair values of the Company's 2022 Notes, 2024 Notes, and 2028 Notes were estimated based on quoted market prices for similar instruments due to their infrequent trading volume. Accordingly, the fair value of the Company's debt is classified as Level 2 within the valuation hierarchy. Finance Lease Obligations and Other — The Company owes $4.1 million related to finance leases. Finance lease obligations represent machinery and equipment financing obligations, which are payable in monthly installments of principal and interest, and are collateralized by the related assets financed. Refer to Note 4 for additional information regarding the Company's finance leases. Deferred Financing Costs – As of December 31, 2020 and December 31, 2019, deferred financing costs of $18.3 million and $15.7 million were included as a direct deduction from outstanding long-term debt. Fees associated with the Revolving Credit Facility are presented in Other assets, net. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | 13. STOCKHOLDERS' EQUITY Common Stock — The Company has authorized 90 million shares of common stock with a par value of $0.01 per share. No dividends have been declared or paid. Share Repurchase Authorization — On November 2, 2017, the Company announced that the Board of Directors adopted a stock repurchase program. The stock repurchase program authorizes the Company to repurchase up to $400 million of the Company’s common stock at any time, or from time to time. Any repurchases under the program may be made by means of open market transactions, negotiated block transactions, or otherwise, including pursuant to a repurchase plan administered in accordance with Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The size and timing of any repurchases will depend on price, market and business conditions, and other factors. The Company has the ability to make discretionary repurchases up to an annual cap of $150 million under the $400 million total authorization. Any shares repurchased will be held as treasury stock. The following table summarizes the Company's repurchases of its common stock: Year Ended December 31, 2020 2019 2018 (In millions, except per share data) Shares repurchased 0.6 — 1.2 Weighted average price per share $ 38.64 $ — $ 45.78 Total cost $ 25.0 $ — $ 54.6 Preferred Stock — The Company has authorized 10 million shares of preferred stock with a par value of $0.01 per share. No preferred stock has been issued. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 14. EARNINGS PER SHARE Basic earnings per share is computed by dividing net income by the number of weighted average common shares outstanding during the reporting period. The weighted average number of common shares used in the diluted earnings per share calculation is determined using the treasury stock method and includes the incremental effect related to the Company’s outstanding stock-based compensation awards. The following table summarizes the effect of the share-based compensation awards on the weighted average number of shares outstanding used in calculating diluted earnings (loss) per share: Year Ended December 31, 2020 2019 2018 (In millions) Weighted average common shares outstanding 56.5 56.2 56.0 Assumed exercise/vesting of equity awards (1) 0.2 — — Weighted average diluted common shares outstanding 56.7 56.2 56.0 (1) Incremental shares from equity awards are computed by the treasury stock method. For the years ended December 31, 2019 and 2018, weighted average common shares outstanding is the same for the computations of both basic and diluted shares outstanding because the Company had a net loss for the period. Equity awards, excluded from our computation of diluted earnings per share because they were anti-dilutive, were 1.4 million, 1.6 million, and 1.7 million for the years ended December 31, 2020, 2019, and 2018, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 15. STOCK-BASED COMPENSATION The Board of Directors adopted, and the Company’s Stockholders approved, the "TreeHouse Foods, Inc. Equity and Incentive Plan" (the "Plan"). Under the Plan, the Compensation Committee may grant awards of various types of compensation, including stock options, restricted stock, restricted stock units, performance shares, performance units, other types of stock-based awards, and other cash-based compensation. The number of shares authorized to be awarded under the Plan is approximately 17.5 million, of which approximately 4.1 million remain available at December 31, 2020. Total compensation expense related to stock-based payments and the related income tax benefit recognized in Net income (loss) from continuing operations are as follows: Year Ended December 31, 2020 2019 2018 (In millions) Compensation expense related to stock-based payments $ 26.1 $ 22.6 $ 30.7 Related income tax benefit 6.7 5.8 7.7 In 2018, the Company entered into an amended employment agreement with our former Chief Executive Officer. The amended plan resulted in the modification of his outstanding equity awards by accelerating the vesting dates, changing outstanding performance units to vest at target, and extending the exercisability of options outstanding. Modification of the existing awards resulted in a charge of $10.0 million in the year ended December 31, 2018. The impact of this modification on expense recognized for stock options, restricted stock units, and performance units was $1.2 million, $3.8 million, and $5.0 million, respectively. The Company estimates that certain key executives and all directors will complete the required service conditions associated with their awards. For all other employees, the Company estimates its forfeiture rate based on historical experience. All amounts below include continuing and discontinued operations. Stock Options — The following table summarizes stock option activity during 2020: Employee Weighted Weighted Aggregate (In thousands) (In millions) Outstanding, at January 1, 2020 1,528 $ 74.58 3.7 $ 0.8 Forfeited (8) 82.77 Exercised (80) 40.01 Expired (128) 66.10 Outstanding, at December 31, 2020 1,312 77.62 3.1 — Vested/expected to vest, at December 31, 2020 1,312 77.62 3.1 — Exercisable, at December 31, 2020 1,312 77.62 3.1 — Year Ended December 31, 2020 2019 2018 (In millions) Intrinsic value of stock options exercised $ 0.7 $ 0.1 $ 3.8 Tax benefit recognized from stock option exercises 0.2 — 0.7 There are no future compensation costs related to unvested options at December 31, 2020. There were no options granted in 2020, 2019, or 2018. Stock options granted under the plan generally have a three year vesting schedule, vest one-third on each of the first three anniversaries of the grant date, and expire ten years from the grant date. Stock options are generally only granted to employees and non-employee directors. Restricted Stock Units — Employee restricted stock unit awards generally vest based on the passage of time. These awards generally vest in approximately three equal installments on each of the first three anniversaries of the grant date. Director restricted stock units vest on the first anniversary of the grant date. Certain directors have deferred receipt of their awards until either their departure from the Board of Directors or a specified date. The following table summarizes the restricted stock unit activity during the year ended December 31, 2020: Employee Weighted Director Weighted (In thousands) (In thousands) Outstanding, at January 1, 2020 615 $ 54.58 116 $ 58.30 Granted 429 44.09 33 51.40 Vested (242) 55.45 (24) 66.79 Forfeited (95) 54.52 — — Outstanding, at December 31, 2020 707 47.92 125 54.67 Vested and deferred, at December 31, 2020 91 55.88 Year Ended December 31, 2020 2019 2018 (In millions) Fair value of vested restricted stock units $ 11.1 $ 19.5 $ 16.6 Tax benefit recognized from vested restricted stock units 2.0 3.7 2.5 Future compensation costs related to restricted stock units are approximately $22.4 million as of December 31, 2020 and will be recognized on a weighted average basis over the next 1.6 years. The grant date fair value of the awards is equal to the Company’s closing stock price on the grant date. Performance Units — Performance unit awards are granted to certain members of management. These awards contain service and performance conditions. For each of the three performance periods, one-third of the units will accrue, multiplied by a predefined percentage generally between 0% and 200%, depending on the achievement of certain operating performance measures. For performance unit awards granted in 2020, performance goals are set and measured annually with earned amounts accrued for settlement at the end of the three year cycle. Additionally, for the cumulative performance period, a number of units will accrue, equal to the number of units granted multiplied by a predefined percentage generally between 0% and 200%, depending on the achievement of certain operating performance measures, less any units previously accrued. Accrued units will be converted to stock or cash, at the discretion of the Compensation Committee, generally, on the third anniversary of the grant date. The Company intends to settle these awards in stock and has the shares available to do so. The following table summarizes the performance unit activity during the year ended December 31, 2020: Performance Weighted (In thousands) Unvested, at January 1, 2020 482 $ 61.28 Granted 221 44.19 Vested (75) 60.12 Forfeited (87) 72.70 Unvested, at December 31, 2020 541 52.38 Year Ended December 31, 2020 2019 2018 (In millions) Fair value of vested performance units $ 3.3 $ 0.9 $ 7.6 Tax benefit recognized from performance units vested 0.7 0.2 0.1 Future compensation costs related to the performance units are estimated to be approximately $8.2 million as of December 31, 2020, and are expected to be recognized over the next 1.0 year. The grant date fair value of the awards is equal to the Company’s closing stock price on the grant date. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 16. ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss consists of the following components, all of which are net of tax: Foreign Unrecognized Accumulated (In millions) Balance at January 1, 2018 $ (57.2) $ (4.3) $ (61.5) Other comprehensive loss before reclassifications (34.5) (0.5) (35.0) Reclassifications from accumulated other comprehensive loss (3) — 0.5 0.5 Reclassifications from accumulated other — (1.1) (1.1) Other comprehensive loss (34.5) (1.1) (35.6) Balance at December 31, 2018 (91.7) (5.4) (97.1) Other comprehensive income before reclassifications 12.3 0.3 12.6 Reclassifications from accumulated other comprehensive loss (3) — 0.5 0.5 Other comprehensive income 12.3 0.8 13.1 Balance at December 31, 2019 (79.4) (4.6) (84.0) Other comprehensive income before reclassifications 12.1 7.4 19.5 Reclassifications from accumulated other comprehensive loss (3) — 0.5 0.5 Other comprehensive income 12.1 7.9 20.0 Balance at December 31, 2020 $ (67.3) $ 3.3 $ (64.0) (1) The tax impact of the foreign currency translation adjustment was insignificant for the years ended December 31, 2020, 2019, and 2018. (2) The unrecognized pension and postretirement benefits are presented net of tax of $2.6 million for the year ended December 31, 2020, and the tax impact was insignificant for the years ended December 31, 2019 and 2018. |
Employee Pension and Postretire
Employee Pension and Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Pension and Postretirement Benefit Plans | 17. EMPLOYEE PENSION AND POSTRETIREMENT BENEFIT PLANS Defined Contribution Plans — Certain of our union and non-union employees participate in savings and profit sharing plans. These plans generally provide for salary reduction contributions to the plans on behalf of the participants of between 1% and 80% of a participant’s annual compensation and provide for employer matching and profit sharing contributions. The Company established a tax-qualified defined contribution plan to manage the assets. On a continuing operations basis, for the years ended December 31, 2020, 2019, and 2018, the Company made matching and profit sharing contributions to the plans of $20.4 million, $19.4 million, and $19.3 million, respectively. Pension and Postretirement Benefits — Certain of our employees and retirees participate in pension and other postretirement benefit plans. Employee benefit plan obligations and expenses included in the Consolidated Financial Statements are determined based on plan assumptions, employee demographic data, including years of service and compensation, benefits and claims paid, and employer contributions. The information below includes the activities of the Company's continuing and discontinued operations. Pension benefits for eligible salaried and non-union employees were frozen in 2002 for years of creditable service. For these employees, incremental pension benefits are only earned for changes in compensation affecting final average pay. Pension benefits earned by union employees covered by collective bargaining agreements, but not participating in multiemployer pension plans, are earned based on creditable years of service and the specified benefit amounts negotiated as part of the collective bargaining agreements. The Company’s funding policy provides that annual contributions to the pension plan master trust will be at least equal to the minimum amounts required by Employee Retirement Income Security Act of 1974, as amended. The Company estimates that its 2021 contributions to its pension plans will be $0.7 million. The measurement date for the defined benefit pension plans is December 31. Certain employees participate in benefit programs that provide certain health care and life insurance benefits for retired employees and their eligible dependents. The plans are unfunded. The Company estimates that its 2021 contributions to its postretirement benefit plans will be $1.5 million. The measurement date for the other postretirement benefit plans is December 31. The Company established a tax-qualified pension plan and master trust to manage the portion of the pension plan assets related to eligible salaried, non-union, and union employees not covered by a multiemployer pension plan. We also retain investment consultants to assist our Investment Committee with formulating a long-term investment policy for the master trust. The expected long-term rate of return on assets is based on projecting long-term market returns for the various asset classes in which the plan’s assets are invested, weighted by the target asset allocations. The estimated ranges are primarily based on observations of historical asset returns and their historical volatility. In determining the expected returns, we also consider consensus forecasts of certain market and economic factors that influence returns, such as inflation, gross domestic product trends, and dividend yields. Active management of the plan assets may result in adjustments to the historical returns. We review the rate of return assumption annually. Our investment objectives are to minimize the volatility of the value of our pension assets relative to our pension liabilities and to ensure assets are sufficient to pay plan benefits. In 2018, we adopted a broad pension de-risking strategy intended to align the characteristics of our assets relative to our liabilities. The strategy targets investments depending on the funded status of the obligation. We anticipate this strategy will continue in future years and will be dependent upon market conditions and plan characteristics. At December 31, 2020, our master trust was invested as follows: investments in equity securities were at 42%; investments in fixed income were at 52%; investments in hedge funds were at 5%; and cash and cash equivalents were less than 1%. We believe the allocation of our master trust investments as of December 31, 2020 is generally consistent with the targets set forth by our Investment Committee. The fair value of the Company’s pension plan assets at December 31, 2020 and 2019 was as follows: December 31, Pricing Category 2020 2019 (In millions) Cash and cash equivalents (a) Level 1 $ 1.6 $ 1.8 Investments valued using NAV per share: Equity funds (b) 137.3 118.4 Fixed income funds (c) 170.2 157.3 Alternative funds (d) 16.8 16.5 Total plan assets $ 325.9 $ 294.0 (a) Includes cash and cash equivalents such as short-term marketable securities. Cash and cash equivalents include money market funds traded in active markets. (b) This investment class includes domestic and international equity funds that includes both large and small/mid cap funds that track the S&P index as well as other equity indices. The Company elected the NAV practical expedient to value these funds. (c) This investment class includes U.S. Treasury index funds as well as bond funds representative of the United States bond and debt markets with varying benchmark indices. The Company elected the NAV practical expedient to value these funds. (d) This investment class primarily includes a hedge fund. The valuation is based on NAV as reported by the asset manager or investment company and adjusted for cash flows, if necessary. In making such an assessment, a variety of factors are reviewed by management, including but not limited to the timeliness of NAV as reported by the asset manager and changes in general economic and market conditions subsequent to the last NAV reported by the asset manager. The following table summarizes information about our pension and postretirement benefit plans for the years ended December 31, 2020 and 2019: Pension Benefits Postretirement 2020 2019 2020 2019 (in millions) Change in benefit obligations: Benefit obligation, at beginning of year $ 336.0 $ 300.0 $ 27.5 $ 28.1 Service cost 1.8 1.5 — — Interest cost 10.5 12.2 0.8 1.1 Curtailment (1) — (0.5) — — Actuarial losses (gains) (2) 24.9 40.3 (0.7) (0.1) Benefits paid (18.1) (17.5) (1.5) (1.6) Benefit obligation, at end of year $ 355.1 $ 336.0 $ 26.1 $ 27.5 Change in plan assets: Fair value of plan assets, at beginning of year $ 294.0 $ 252.0 $ — $ — Actual gain on plan assets 48.5 55.8 — — Company contributions 1.5 3.7 1.5 1.6 Benefits paid (18.1) (17.5) (1.5) (1.6) Fair value of plan assets, at end of year $ 325.9 $ 294.0 $ — $ — Funded status of the plan $ (29.2) $ (42.0) $ (26.1) $ (27.5) Amounts recognized in the Consolidated Balance Sheets: Current liability $ (0.7) $ (0.7) $ (1.5) $ (1.6) Non-current liability (28.5) (41.3) (24.6) (25.9) Net amount recognized $ (29.2) $ (42.0) $ (26.1) $ (27.5) Amounts recognized in Accumulated other Net actuarial (gain) loss $ (3.9) $ 5.8 $ (0.9) $ (0.2) Prior service cost 0.4 0.5 — — Total, before tax effect $ (3.5) $ 6.3 $ (0.9) $ (0.2) (1) Curtailment relates to the closure of the Company's Battle Creek, Michigan facility. (2) The change in actuarial loss (gain) was primarily due to the decrease in discount rates from 3.25% as of December 31, 2019 to 2.50% as of December 31, 2020. Pension Benefits 2020 2019 (In millions) Accumulated benefit obligation $ 353.5 $ 333.9 Weighted average assumptions used to determine Discount rate 2.50 % 3.25 % Rate of compensation increases 3.00 % 3.50%-4.00% The key actuarial assumptions used to determine the postretirement benefit obligations as of December 31, 2020 and 2019 are as follows: 2020 2019 Pre-65 Post-65 Pre-65 Post-65 Health care cost trend rates: Health care cost trend rate for next year 6.61 % 7.26 % 7.29 % 8.16 % Ultimate rate 4.50 % 4.50 % 4.50 % 4.50 % Discount rate 2.50 % 2.50 % 3.25 % 3.25 % Year ultimate rate achieved 2029 2029 2028 2028 The following table summarizes the net periodic cost of our pension and postretirement benefit plans for the years ended December 31, 2020, 2019, and 2018: Pension Benefits Postretirement Benefits 2020 2019 2018 2020 2019 2018 (In millions) (In millions) Components of net periodic costs: Service cost $ 1.8 $ 1.5 $ 1.9 $ — $ — $ — Interest cost 10.5 12.2 11.9 0.8 1.1 1.2 Expected return on plan assets (14.5) (15.2) (15.6) — — — Amortization of unrecognized prior service cost 0.2 0.2 0.2 — — — Amortization of unrecognized net loss 0.6 0.5 0.5 — — — Curtailment (1) — (0.5) — — — — Net periodic (benefit) cost $ (1.4) $ (1.3) $ (1.1) $ 0.8 $ 1.1 $ 1.2 (1) A curtailment gain was recognized during 2019 related to the closure of the Company's Battle Creek, Michigan facility. Pension Benefits Postretirement Benefits 2020 2019 2018 2020 2019 2018 Weighted average assumptions used to determine the periodic benefit costs: Discount rate 3.25 % 4.40 % 3.70 % 3.25 % 4.40 % 3.70 % Rate of compensation increases 3.50%-4.00% 3.50%-4.00% 3.50%-4.00% — — — Expected return on plan assets 5.10 % 5.91 % 5.80 % — — — Estimated future pension and postretirement benefit payments from the plans are as follows: Pension Postretirement (In millions) 2021 $ 20.0 $ 1.5 2022 20.3 1.5 2023 20.8 1.5 2024 22.0 1.6 2025 20.4 1.6 2026-2030 97.1 7.8 Multiemployer Pension Plans - The Company contributes to several multiemployer pension plans on behalf of employees covered by collective bargaining agreements. These plans are administered jointly by management and union representatives and cover substantially all full-time and certain part-time union employees who are not covered by other plans. The risks of participating in multiemployer plans are different from single-employer plans in the following aspects: (1) assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers, (2) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers, and (3) if the Company chooses to stop participating in a multiemployer plan, we could, under certain circumstances, be liable for unfunded vested benefits or other expenses of jointly administered union/management plans. The Company’s participation in multiemployer pension plans is outlined in the table below. The EIN column provides the Employer Identification Number ("EIN") of each plan. Unless otherwise noted, the most recent Pension Protection Act zone status available in December 31, 2020 and 2019 is for the plan’s years ended December 31, 2019, and 2018, respectively. The zone status is based on information that the Company received from the plan, and is certified by the plan’s actuary. Among other factors, plans in the red zone are generally less than 65% funded, plans in the yellow zone are less than 80% funded, and plans in the green zone are at least 80% funded. The FIP column indicates plans for which a financial improvement plan ("FIP") is either pending or has been implemented. The last column lists the expiration dates of the collective bargaining agreements to which the plans are subject. There have been no other significant changes in the number of Company employees covered by the multiemployer plans or other significant events that would affect the comparability of contributions to the plans. The following table lists information about the Company's individually significant multiemployer pension plans: Pension TreeHouse Foods Expiration EIN / Pension Plan Year Ended FIP Contributions Surcharge Of Collective Plan Name Plan Number 2019 2018 (yes or no) 2020 2019 2018 (yes or no) Agreement(s) Bakery and Confectionery Union and Industry 7/22/2023 International Pension Fund 52-6118572 / 001 Red Red Yes $ 1.6 $ 1.5 $ 1.4 Yes 12/4/2023 Central States Southeast and Southwest Areas Pension 6/30/2021 Fund 36-6044243 / 001 Red Red Yes 1.1 1.0 0.8 Yes 12/31/2022 Retail, Wholesale and Department Store International Union and Industry Pension Fund 63-0708442 / 001 Yellow Red Yes — 0.3 0.6 Yes (1) Rockford Area Dairy Industry Local 754, Intl. Brotherhood of Teamsters Retirement Pension Plan 36-6067654 / 001 Green Green No 0.6 0.5 0.5 No 4/30/2021 Western Conference of Teamsters Pension Fund 91-6145047 / 001 Green Green No — — 0.8 No (2) (1) During 2019, the Company executed a complete withdrawal from the Retail, Wholesale, and Department Store International Union and Industry Pension Fund and settled a withdrawal liability of $4.3 million. (2) The Company partially withdrew from the Western Conference of Teamsters Pension Plan Trust as a result of the closure of its City of Industry, California facility during 2016. As a result, there is no collective bargaining agreement related to this plan. No other withdrawal liabilities were established related to multiemployer pension plans, as withdrawal from the remaining plans is not probable as of December 31, 2020. The Company was listed in the following plan’s Form 5500 as providing more than 5.0% of the total contributions for the following plan and plan years: Years Contribution to Plan Exceeded 5% of Total Contributions Plan Name: (as of December 31 of the Plan's Year-End) Rockford Area Dairy Industry Local 754, Intl. Brotherhood of Teamsters Retirement Pension Plan 2020, 2019, and 2018 The Company contributes to certain multiemployer postretirement benefit plans other than pensions on behalf of employees covered by collective bargaining agreements. These plans are administered jointly by management and union representatives and cover all eligible retirees. These plans are primarily health and welfare funds and carry the same multiemployer risks as identified at the beginning of this Note. Total contributions to these plans were $0.3 million, $0.2 million, and $1.5 million for the years ended December 31, 2020, 2019, and 2018, respectively. |
Other Operating Expense, Net
Other Operating Expense, Net | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Other Operating Expense, Net | 18. OTHER OPERATING EXPENSE, NET The Company incurred other operating expense for the years ended December 31, 2020, 2019, and 2018, which consisted of the following: Year Ended December 31, 2020 2019 2018 (In millions) Restructuring programs (1) $ 71.1 $ 99.3 $ 149.1 (Gain) loss on divestitures (2) 0.3 — (14.3) Other (0.3) 0.3 0.9 Total other operating expense, net $ 71.1 $ 99.6 $ 135.7 (1) Refer to Note 3 for additional information. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 19. COMMITMENTS AND CONTINGENCIES Litigation, Investigations, and Audits - On November 16, 2016, a purported TreeHouse shareholder filed a class action captioned Tarara v. TreeHouse Foods, Inc., et al., Case No. 1:16-cv-10632, in the United States District Court for the Northern District of Illinois against TreeHouse and certain of its officers. The complaint, amended on March 24, 2017, is purportedly brought on behalf of all purchasers of TreeHouse common stock from January 20, 2016 through and including November 2, 2016. It asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder and seeks, among other things, damages and costs and expenses. On December 22, 2016, another purported TreeHouse shareholder filed an action captioned Wells v. Reed, et al., Case No. 2016-CH-16359, in the Circuit Court of Cook County, Illinois, against TreeHouse and certain of its officers. This complaint, purportedly brought derivatively on behalf of TreeHouse, asserts state law claims against certain officers for breach of fiduciary duty, unjust enrichment, and corporate waste. On February 7, 2017, another purported TreeHouse shareholder filed an action captioned Lavin v. Reed, et al., Case No. 17-cv-01014, in the Northern District of Illinois, against TreeHouse and certain of its officers. This complaint is also purportedly brought derivatively on behalf of TreeHouse, and it asserts state law claims against certain officers for breach of fiduciary duty, unjust enrichment, abuse of control, gross mismanagement, and corporate waste. On February 8, 2019, another purported TreeHouse shareholder filed an action captioned Bartelt v. Reed, et al., Case No. 1:19-cv-00835, in the United States District Court for the Northern District of Illinois. This complaint is purportedly brought derivatively on behalf of TreeHouse and asserts state law claims against certain officers for breach of fiduciary duty, unjust enrichment, abuse of control, gross mismanagement, and corporate waste, in addition to asserting violations of Section 14 of the Securities Exchange Act of 1934. Finally, on June 3, 2019, another purported TreeHouse shareholder filed an action captioned City of Ann Arbor Employees’ Retirement System v. Reed, et al., Case No. 2019-CH-06753, in the Circuit Court of Cook County, Illinois, against TreeHouse and certain of its officers. Like Wells, Lavin, and Bartelt, this complaint is purportedly brought derivatively on behalf of TreeHouse and asserts claims for contribution and indemnification, breach of fiduciary duty, and aiding and abetting breaches of fiduciary duty. All five complaints make substantially similar allegations (though the amended complaint in Tarara now contains additional detail). Essentially, the complaints allege that TreeHouse, under the authority and control of the individual defendants: (i) made certain false and misleading statements regarding the Company’s business, operations, and future prospects; and (ii) failed to disclose that (a) the Company’s private label business was underperforming; (b) the Company’s Flagstone business was underperforming; (c) the Company’s acquisition strategy was underperforming; (d) the Company had overstated its full-year 2016 guidance; and (e) TreeHouse’s statements lacked reasonable basis. The complaints allege that these actions artificially inflated the market price of TreeHouse common stock during the class period, thus purportedly harming investors. The Bartelt action also includes substantially similar allegations concerning events in 2017, and the Ann Arbor complaint also seeks contribution from the individual defendants for losses incurred by the company in these litigations. We believe that these claims are without merit and intend to defend against them vigorously. Since its initial docketing, the Tarara matter has been re-captioned as Public Employees’ Retirement Systems of Mississippi v. TreeHouse Foods, Inc., et al., in accordance with the Court’s order appointing Public Employees’ Retirement Systems of Mississippi as the lead plaintiff. On May 26, 2017, the Public Employees’ defendants filed a motion to dismiss, which the court denied on February 12, 2018. On April 12, 2018, the Public Employees’ defendants filed their answer to the amended complaint. On April 23, 2018, the parties filed a joint status report with the Court, which set forth a proposed discovery and briefing schedule for the Court’s consideration. On July 13, 2018, lead plaintiff filed a motion to certify the class, and defendants filed their response in opposition to the motion to certify the class on October 8, 2018. On November 12, 2018, the parties filed an agreed motion to stay proceedings to allow them to explore mediation. The motion was granted on November 19. The parties thereafter engaged in mediation but failed to resolve the dispute. On March 29, 2019, the parties resumed litigation by filing an agreed motion for extension of time, which was granted on April 9. Under that schedule, lead plaintiff filed its reply class certification brief on May 17, 2019. On February 26, 2020, the court granted lead plaintiff’s motion for class certification. Defendants then filed a petition for permissive appeal of the class certification order in the United States Court of Appeals for the Seventh Circuit on March 11, 2020. After ordering lead plaintiff to file a response, the court denied the petition on May 4, 2020. On December 16, 2019, the parties agreed to extend the case schedule 90 days. This agreed motion was granted on December 25, 2019. At a status conference on March 10, 2020, the parties informed the court that they intended to engage in a second mediation and the court extended then-upcoming deadlines under the case schedule, pending a further status report from the parties regarding the extent of the stay needed to facilitate mediation. The court subsequently issued multiple general orders as a result of the COVID-19 outbreak, which together postponed all case deadlines for a total of 77 days. On June 9, 2020, the parties filed a joint status report informing the court that mediation had been scheduled for July 9, 2020. The next day, the court stayed the case pending the outcome of mediation. Any in-person mediation was thereafter postponed due to ongoing COVID-19 concerns. Due to the similarity of the complaints, the parties in Wells and Lavin entered stipulations deferring the litigation until the earlier of (i) the court in Public Employees’ entering an order resolving defendants’ anticipated motion to dismiss therein or (ii) plaintiffs’ counsel receiving notification of a settlement of Public Employees’ or until otherwise agreed to by the parties. On September 27, 2018, the parties in Wells and Lavin filed joint motions for entry of agreed orders further deferring the matters in light of the Public Employees’ Court’s denial of the motion to dismiss in February 2018. The Wells and Lavin Courts entered the agreed orders further deferring the matters on September 27, 2018 and October 10, 2018, respectively. On June 25, 2019, the parties jointly moved to consolidate the Bartelt matter with Lavin, so that it would be subject to the Lavin deferral order. This motion was granted on June 27, 2019, and Bartelt is now consolidated with Lavin and deferred. There is no set status date in Lavin at this time. Similarly, Ann Arbor was consolidated with Wells on August 13, 2019, and is now deferred. In Wells, the plaintiffs have notified the court that they intend to move to modify the deferral order to lift the stay. Plaintiff’s motion is due February 8, 2021, and briefing is to be completed by March 20, 2021. A status hearing is scheduled for March 22, 2021. The Company is party to matters challenging its wage and hour practices. These matters include a number of class actions consolidated under the caption Negrete v. Ralcorp Holdings, Inc., et al, pending in the U.S. District Court for the Central District of California, in which plaintiffs allege a pattern of violations of California and/or federal law at three former Company manufacturing facilities in California. The Company has notified the Court that it has reached a preliminary settlement understanding with the Negrete plaintiffs that would resolve all associated matters for a payment by the Company of $9.0 million. The preliminary understanding reached with the Negrete plaintiffs involves procedural requirements and Court approval which may continue through 2021. As a result of these developments, the Company has an accrual for a $9.0 million liability as of December 31, 2020. In addition, the Company is party in the ordinary course of business to certain claims, litigation, audits, and investigations. The Company will record an accrual for a loss contingency when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company believes it has established adequate accruals for liabilities that are probable and reasonably estimable that may be incurred in connection with any such currently pending or threatened matter, none of which are significant. In the Company’s opinion, the settlement of any such currently pending or threatened matter is not expected to have a material impact on the Company’s financial position, results of operations, or cash flows. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 20. DERIVATIVE INSTRUMENTS The Company is exposed to certain risks relating to its ongoing business operations. The primary risks managed by derivative instruments include interest rate risk, foreign currency risk, and commodity price risk. Derivative contracts are entered into for periods consistent with the related underlying exposure and do not constitute positions independent of those exposures. The Company does not enter into derivative instruments for trading or speculative purposes. Interest Rate Risk — The Company manages its exposure to changes in interest rates by optimizing the use of variable-rate and fixed-rate debt and by utilizing interest rate swaps to hedge our exposure to changes in interest rates, to reduce the volatility of our financing costs, and to achieve a desired proportion of fixed versus floating-rate debt, based on current and projected market conditions. As of December 31, 2020, the Company had entered into $875.0 million of long-term interest rate swap agreements to lock into a fixed LIBOR interest rate base. Under the terms of the agreements, $875.0 million in variable-rate debt was swapped for a weighted average fixed interest rate base of approximately 2.68% in 2020 and 2.91% from 2021 through 2025. These instruments are not accounted for under hedge accounting and the changes in their fair value are recorded in the Consolidated Statements of Operations. Foreign Currency Risk — Due to the Company’s foreign operations, it is exposed to foreign currency risk. The Company enters into foreign currency contracts to manage the risk associated with foreign currency cash flows. This includes, but is not limited to, using foreign currency contracts to establish a fixed foreign currency exchange rate for the net cash flow requirements for purchases of inventory, sales of finished goods, and future settlement of foreign-denominated assets and liabilities. These contracts do not qualify for hedge accounting and changes in their fair value are recognized in the Consolidated Statements of Operations. As of December 31, 2020, the Company had $7.7 million of foreign currency contracts outstanding, expiring throughout 2021 and 2022. Commodity Risk — Certain commodities the Company uses in the production and distribution of its products are exposed to market price risk. The Company utilizes derivative contracts to manage this risk. The majority of commodity forward contracts are not derivatives, and those that are generally qualify for the normal purchases and normal sales scope exception under the guidance for derivative instruments and hedging activities and, therefore, are not subject to its provisions. For derivative commodity contracts that do not qualify for the normal purchases and normal sales scope exception, the Company records their fair value on the Consolidated Balance Sheets, with changes in value being recorded in the Consolidated Statements of Operations. The Company’s derivative commodity contracts may include contracts for diesel, oil, plastics, natural gas, electricity, resin, corn, coffee, and other commodity contracts that do not meet the requirements for the normal purchases and normal sales scope exception. Diesel contracts are used to manage the Company’s risk associated with the underlying cost of diesel fuel used to deliver products. Contracts for oil, plastics, and resin are used to manage the Company’s risk associated with the underlying commodity cost of a significant component used in packaging materials. Contracts for natural gas and electricity are used to manage the Company’s risk associated with the utility costs of its manufacturing facilities, and corn, coffee, and other commodity contracts that are derivatives that do not meet the normal purchases and normal sales scope exception are used to manage the price risk associated with raw material costs. As of December 31, 2020, the Company had outstanding contracts for the purchase of 0.1 million megawatts of electricity, expiring throughout 2021 and 2022; 20.1 million gallons of diesel, expiring throughout 2021; 4.5 million dekatherms of natural gas, expiring throughout 2021; 3.6 million pounds of coffee, expiring throughout 2021; and 21.0 million pounds of resin, expiring throughout 2021. The following table identifies the fair value of each derivative instrument: December 31, 2020 2019 (In millions) Asset derivatives Commodity contracts $ 12.6 $ 0.8 Interest rate swap agreements — 0.8 $ 12.6 $ 1.6 Liability derivatives Commodity contracts $ 0.7 $ 0.6 Foreign currency contracts — 0.1 Interest rate swap agreements 97.4 56.5 $ 98.1 $ 57.2 As of December 31, 2020 and 2019, asset derivatives are included within Other assets, net and liability derivatives are included within Accrued expenses in the Consolidated Balance Sheets. The fair values of the commodity contracts, foreign currency contracts, and interest rate swap agreements are determined using Level 2 inputs. Level 2 inputs are inputs other than quoted market prices that are observable for an asset or liability, either directly or indirectly. The fair values of the commodity contracts, foreign currency contracts, and interest rate swap agreements are based on an analysis comparing the contract rates to the market rates at the balance sheet date. We recognized the following gains and losses on our derivative contracts in the Consolidated Statements of Operations: Location of Gain (Loss) Year Ended Recognized in Net Income (Loss) 2020 2019 2018 (In millions) Mark-to-market unrealized (loss) gain: Commodity contracts Other expense, net $ 11.7 $ 1.5 $ (2.7) Foreign currency contracts Other expense, net 0.1 (1.6) 1.0 Interest rate swap agreements Other expense, net (41.7) (46.9) (20.8) Total unrealized loss $ (29.9) $ (47.0) $ (22.5) Realized gain (loss): Commodity contracts Manufacturing related to Cost of sales and transportation related to Selling and distribution $ (9.8) $ 1.5 $ 3.7 Foreign currency contracts Cost of sales 0.4 0.5 1.6 Interest rate swap agreements Interest expense (18.4) 6.5 5.5 Total realized (loss) gain $ (27.8) $ 8.5 $ 10.8 Total loss $ (57.7) $ (38.5) $ (11.7) |
Segment and Geographic Informat
Segment and Geographic Information and Major Customers | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information and Major Customers | 21. SEGMENT AND GEOGRAPHIC INFORMATION AND MAJOR CUSTOMERS On January 1, 2020, the Company changed how it manages its business, allocates resources, and goes to market, which resulted in modifications to its organizational and segment structure. As a result, the Company reorganized from a three segment structure previously organized by product category (Baked Goods, Beverages, and Meal Solutions) to a two segment structure organized by market dynamics (Meal Preparation and Snacking & Beverages). In connection with this segment reorganization, the Company also recast expenses related to its commercial sales organization from direct selling, general, and administrative expense previously included within the segments to corporate unallocated selling, general, and administrative expense to align with the revised organizational structure. All prior period information has been recast to reflect this change in reportable segments. The Company manages operations on a company-wide basis, thereby making determinations as to the allocation of resources in total rather than on a segment-level basis. The Company has designated reportable segments based on how management views its business. The Company does not segregate assets between segments for internal reporting. Therefore, asset-related information has not been presented. The reportable segments, as presented below, are consistent with the manner in which the Company reports its results to the Chief Operating Decision Maker. The principal products that comprise each segment are as follows: Meal Preparation – Our Meal Preparation segment sells aseptic cheese & pudding; baking and mix powders; hot cereals; jams, preserves, and jellies; liquid and powdered non-dairy creamer; macaroni and cheese; mayonnaise; Mexican, barbeque, and other sauces; pasta; pickles and related products; powdered soups and gravies; refrigerated and shelf stable dressings and sauces; refrigerated dough; single serve hot beverages; skillet dinners; and table and flavored syrups. Snacking & Beverages – Our Snacking & Beverages segment sells bars; broths; candy; cookies; crackers; in-store bakery products; pita chips; powdered drinks; pretzels; ready-to-drink coffee; retail griddle waffles, pancakes, and French toast; specialty teas; and sweeteners. The Company evaluates the performance of its segments based on net sales dollars and direct operating income. Direct operating income is defined as gross profit less freight out, sales commissions, and direct selling, general, and administrative expenses. The amounts in the following tables are obtained from reports used by senior management and do not include income taxes. Other expenses not allocated include unallocated selling, general, and administrative expenses, unallocated costs of sales, and unallocated corporate expenses (amortization expense, other operating expense, and asset impairment). The accounting policies of the Company’s segments are the same as those described in the summary of significant accounting policies set forth in Note 1. Financial information relating to the Company’s reportable segments on a continuing operations basis, revised to reflect the new segment structure, is as follows: Year Ended December 31, 2020 2019 2018 (In millions) Net sales to external customers: Meal Preparation $ 2,701.4 $ 2,680.7 $ 2,871.6 Snacking & Beverages 1,649.4 1,608.2 1,716.2 Unallocated (1.1) — — Total $ 4,349.7 $ 4,288.9 $ 4,587.8 Direct operating income: Meal Preparation $ 370.6 $ 381.3 $ 418.9 Snacking & Beverages 234.6 192.8 180.2 Total 605.2 574.1 599.1 Unallocated selling, general, and administrative expenses (277.2) (270.9) (288.7) Unallocated cost of sales (1) (36.0) (16.5) (11.1) Unallocated corporate expense and other (1) (142.9) (302.8) (215.9) Operating income (loss) $ 149.1 $ (16.1) $ 83.4 Depreciation: Meal Preparation $ 57.8 $ 60.2 $ 55.1 Snacking & Beverages 64.6 68.6 76.3 Corporate office (2) 10.1 7.7 13.6 Total $ 132.5 $ 136.5 $ 145.0 (1) Includes charges related to restructuring programs and other costs managed at corporate. Other costs include incremental expenses directly attributable to our response to the COVID-19 pandemic, which included supplemental pay to our front-line personnel, additional protective equipment for employees, and additional sanitation measures. Asset impairments are included in Unallocated corporate expense and other. (2) Includes accelerated depreciation related to restructurings. Segment revenue disaggregated by product category groups are as follows: Year Ended December 31, 2020 2019 2018 (In millions) Center store grocery $ 1,700.8 $ 1,763.1 $ 1,871.9 Main course 1,000.6 917.6 999.7 Total Meal Preparation 2,701.4 2,680.7 2,871.6 Sweet & savory snacks 1,177.2 1,220.1 1,306.3 Beverages & drink mixes 472.2 388.1 409.9 Total Snacking & Beverages 1,649.4 1,608.2 1,716.2 Unallocated net sales (1.1) — — Total net sales $ 4,349.7 $ 4,288.9 $ 4,587.8 Segment revenue disaggregated by sales channels are as follows: Year Ended December 31, 2020 2019 2018 (In millions) Retail grocery $ 3,581.7 $ 3,419.2 $ 3,610.7 Food-away-from-home 245.6 357.2 383.7 Industrial, co-manufacturing, and other 522.4 512.5 593.4 Total net sales $ 4,349.7 $ 4,288.9 $ 4,587.8 Geographic Information — The Company had revenues from customers outside of the United States of approximately 6.8%, 7.3%, and 10.3% of total consolidated net sales from continuing operations in 2020, 2019, and 2018, respectively, with 5.2%, 5.8%, and 8.7% of total consolidated net sales from continuing operations going to Canada in 2020, 2019, and 2018, respectively. Sales are determined based on the customer destination where the products are shipped. Long-lived assets consist of net property, plant, and equipment. The geographic location of long-lived assets is as follows: December 31, 2020 2019 (In millions) Long-lived assets: United States $ 927.4 $ 899.6 Canada 125.2 129.1 Other 17.4 16.5 Total $ 1,070.0 $ 1,045.2 Major Customers — Walmart Inc. and affiliates accounted for approximately 23.9%, 24.4%, and 23.6% of consolidated net sales from continuing operations in December 31, 2020, 2019, and 2018, respectively, with net sales in both Meal Preparation and Snacking & Beverages segments. No other customer accounted for more than 10% of our consolidated net sales from continuing operations. When taking into account those receivables sold under our Receivables Sales Program (refer to Note 5 for more information), total trade receivables with the following customers represented more than 10.0% of our total trade receivables as of December 31, 2020 and 2019: December 31, 2020 2019 Walmart Inc. 17.3 % (1) Costco Wholesale Corporation (1) 18.2 % (1) Less than 10% of our total trade receivables. |
Quarterly Results of Operations
Quarterly Results of Operations (unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (unaudited) | 22. QUARTERLY RESULTS OF OPERATIONS (unaudited) The following is a summary of our unaudited quarterly results of operations for 2020: Quarter First Second Third Fourth (In millions, except per share data) Fiscal 2020 Net sales $ 1,084.9 $ 1,041.9 $ 1,045.7 $ 1,177.2 Gross profit 194.9 191.2 188.2 227.9 (Loss) income before income taxes from continuing operations (73.0) 11.2 22.4 56.5 Net (loss) income from continuing operations (32.8) (2.6) 11.4 73.2 Net income (loss) from discontinued operations 1.6 1.1 0.7 (38.8) Net (loss) income (31.2) (1.5) 12.1 34.4 Earnings (loss) per common share - basic: Continuing operations $ (0.58) $ (0.05) $ 0.20 $ 1.30 Discontinued operations 0.03 0.02 0.01 (0.69) Earnings (loss) per share - basic (1) $ (0.55) $ (0.03) $ 0.21 $ 0.61 Earnings (loss) per common share - diluted: Continuing operations $ (0.58) $ (0.05) $ 0.20 $ 1.29 Discontinued operations 0.03 0.02 0.01 (0.69) Earnings (loss) per share - diluted (1) $ (0.55) $ (0.03) $ 0.21 $ 0.61 (1) The sum of the individual per share amounts may not add due to rounding. In addition, the sum of the quarters may not equal the total year amount due to the impact of changes in average quarterly shares outstanding and rounding. The following is a summary of our unaudited quarterly results of operations for 2019: Quarter First Second Third Fourth (In millions, except per share data) Fiscal 2019 Net sales $ 1,066.8 $ 1,025.3 $ 1,057.3 $ 1,139.5 Gross profit 196.2 189.2 186.3 225.1 (Loss) income before income taxes from continuing operations (21.4) (56.9) (97.4) 19.9 Net (loss) income from continuing operations (14.5) (50.1) (61.0) 15.3 Net (loss) income from discontinued operations (12.4) (121.7) (116.8) 0.2 Net (loss) income (26.9) (171.8) (177.8) 15.5 Earnings (loss) per common share - basic: Continuing operations $ (0.26) $ (0.89) $ (1.08) $ 0.27 Discontinued operations (0.22) (2.16) (2.07) — Earnings (loss) per share - basic (1) $ (0.48) $ (3.05) $ (3.16) $ 0.27 Earnings (loss) per common share - diluted: Continuing operations $ (0.26) $ (0.89) $ (1.08) $ 0.27 Discontinued operations (0.22) (2.16) (2.07) — Earnings (loss) per share - diluted (1) $ (0.48) $ (3.05) $ (3.16) $ 0.27 (1) The sum of the individual per share amounts may not add due to rounding. In addition, the sum of the quarters may not equal the total year amount due to the impact of changes in average quarterly shares outstanding and rounding. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 23. SUBSEQUENT EVENTS Notice of Partial Redemption of the 2024 Notes On January 15, 2021 the Company, through Wells Fargo Bank, National Association, as trustee (the "Trustee"), issued a notice of redemption to redeem $200.0 million of its outstanding 6.000% Senior Notes due 2024 (the "2024 Notes"). The redemption of the 2024 Notes is expected to occur on February 16, 2021 (the "Redemption Date"). The 2024 Notes were issued under an indenture dated as of March 2, 2010, by and among the Company, the guarantors signatory thereto and the Trustee, as supplemented and amended (the "Indenture"). The Notes will be redeemed pursuant to Sections 3.01 and 3.02 of the Indenture at a redemption price equal to 101.50% of the aggregate principal amount of the Notes being redeemed (the "Redemption Price"), plus accrued and unpaid interest to, but not including the Redemption Date. The redemption of the 2024 Notes will be funded using the Company's available cash resources, and it is not subject to any conditions. On and after the Redemption Date, the Redemption Price will become due and payable upon each such Note to be redeemed and, unless the Company defaults in making such redemption payment, interest thereon will cease to accrue on and after that date. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Deferred Tax Valuation Allowance Balance Additions Reductions Balance End (In millions) 2018 $ (14.9) $ (1.6) $ 1.4 $ (15.1) 2019 (15.1) (153.5) 0.7 (167.9) 2020 (167.9) (0.2) 7.1 (161.0) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation — The Consolidated Financial Statements include the accounts of TreeHouse Foods, Inc. and its 100% owned direct and indirect subsidiaries (the "Company," "TreeHouse,” "we," "us," or "our"). All intercompany balances and transactions are eliminated in consolidation. Discontinued Operations — Beginning in the third quarter of 2019, the Company determined that both its Snacks division and its Ready-to-eat ("RTE") Cereal business met the discontinued operations criteria in Accounting Standards Codification ("ASC") 205-20-45 and were classified as discontinued operations. As such, both businesses have been excluded from continuing operations and segment results for all periods presented. Refer to Note 7 for additional information. Change in Segments — |
Use of Estimates | Use of Estimates — The preparation of our Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to use judgment to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the Consolidated Financial Statements, and the reported amounts of net sales and expenses during the reporting period. Actual results could differ from these estimates. |
Cash Equivalents | Cash Equivalents — We consider temporary cash investments with an original maturity of three months or less to be cash equivalents. As of December 31, 2020 and 2019, $92.3 million and $72.7 million, respectively, represents cash and cash equivalents held in foreign jurisdictions, in local currencies. |
Inventories | Inventories — Inventories are stated at the lower of cost or net realizable value. The Company's inventory is valued using the FIFO method. The costs of finished goods inventories include raw materials, labor, and overhead costs. |
Property, Plant, and Equipment | Property, Plant, and Equipment — Property, plant, and equipment are stated at acquisition cost, plus capitalized interest on borrowings during the actual construction period of major capital projects. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets as follows: Asset Useful Life Buildings and improvements 12-40 years Machinery and equipment 3-15 years Office furniture and equipment 3-12 years Building improvements are depreciated over the shorter of the estimated useful life of the assets or the remaining useful life. We perform impairment tests when circumstances indicate that the carrying value of an asset may not be recoverable. Finance leases are amortized over the shorter of their lease term or their estimated useful lives, and amortization expense is included in depreciation expense. Expenditures for repairs and maintenance, which do not improve or extend the life of the assets, are expensed as incurred. |
Intangible and Other Assets | Intangible and Other Assets — Identifiable intangible assets with finite lives are amortized over their estimated useful lives as follows: Asset Useful Life Customer-related 5 to 20 years Trademarks 10 to 20 years Non-competition agreements Based on the terms of the agreements Deferred financing costs associated with line-of-credit arrangements Based on the terms of the agreements Formulas/recipes 5 to 7 years Computer software 3 to 10 years All amortization expense related to intangible assets is recorded in Amortization expense in the Consolidated Statements of Operations. Indefinite lived trademarks are evaluated for impairment annually in the fourth quarter or more frequently, if events or changes in circumstances indicate that the asset might be impaired. Impairment is indicated when their book value exceeds fair value. If the fair value of an evaluated asset is less than its book value, the asset is written down to fair value, which is generally based on its discounted future cash flows. Amortizable intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If an evaluation of the undiscounted cash flows indicates impairment, the asset is written down to its estimated fair value, which is generally based on discounted future cash flows. Goodwill is evaluated annually in the fourth quarter or more frequently, if events or changes in circumstances require an interim assessment. We assess goodwill for impairment (as of December 31) at the reporting unit level using income and market approaches, employing significant assumptions regarding growth, discount rates, and profitability at each reporting unit. Our estimates under the income approach are determined based on a discounted cash flow model. The market approach uses a market multiple methodology employing earnings before interest, taxes, depreciation, and amortization ("EBITDA") and applies a range of multiples to those amounts in determining the indicated fair value. In determining the multiples used in this approach, we obtain the multiples for selected peer companies using the most recent publicly available information. In determining the indicated fair value of each reporting unit, the Company concludes based on the income approach, and uses the market approach to corroborate, as the Company believes the income approach is the most reliable indicator of the fair value of the reporting units. The resulting value is then compared to the carrying value of each reporting unit to determine if impairment is necessary. |
Revenue Recognition | Revenue Recognition — We manufacture and sell food and beverage products to retailers, distributors, food manufacturers, and the food-away-from-home business. Revenue recognition is completed on a point in time basis when product control is transferred to the customer. In general, control transfers to the customer when the product is shipped or delivered to the customer based upon applicable shipping terms. For each contract, the Company considers the transfer of products, each of which is distinct, to be the identified performance obligation generally satisfied within one year. No payment terms beyond one year are granted at contract inception. Most contracts also include some form of variable consideration. The most common forms of variable consideration include discounts, rebates, and sales returns and allowances. Variable consideration is treated as a reduction in revenue when product revenue is recognized. Depending on the specific type of variable consideration, we use either the expected value or most likely amount method to determine the variable consideration. The Company reviews and updates its estimates and related accruals of variable consideration each period based on the terms of the agreements, historical experience, and any recent changes in the market. The Company does not have significant deferred revenue or unbilled receivable balances arising from transactions with customers. We do not capitalize contract inception costs, as contracts are one year or less. The Company does not incur significant fulfillment costs requiring capitalization. Shipping and handling costs associated with outbound freight are included within Selling and distribution expenses and are accounted for as a fulfillment cost as incurred, including shipping and handling costs after control over a product has transferred to a customer. Shipping and handling costs recorded as a component of Selling and distribution expense were approximately $153.6 million, $148.3 million, and $199.2 million for the years ended December 31, 2020, 2019, and 2018, respectively. In addition, any taxes collected on behalf of government authorities are excluded from net sales. |
Stock-Based Compensation | Stock-Based Compensation — We measure compensation expense for our equity awards at their grant date fair value. The resulting expense is recognized over the relevant service period. |
Accounts Receivable | Accounts Receivable — We provide credit terms to customers in-line with industry standards, perform ongoing credit evaluations of our customers, and maintain allowances for potential credit losses based on historical experience. Customer balances are written off after all collection efforts are exhausted. Estimated product returns, which have not been material, are deducted from sales at the time of shipment. |
Employee-Related Benefits | Employment-Related Benefits — We provide a range of benefits to our employees, including pension and postretirement benefits to our eligible employees and retirees. We record annual amounts relating to these plans based on calculations specified by GAAP, which include various actuarial assumptions, such as discount rates, assumed investment rates of return, compensation increases, employee turnover rates, and health care cost trend rates. We review our actuarial assumptions on an annual basis and make modifications to the assumptions based on current rates and trends when appropriate. |
Income Taxes | Income Taxes — The provision for income taxes includes federal, foreign, state, and local income taxes currently payable, and those deferred because of temporary differences between the financial statement and tax bases of assets and liabilities. Deferred tax assets or liabilities are computed based on the difference between the financial statement and income tax bases of assets and liabilities using enacted tax rates. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Deferred income tax expenses or credits are based on the changes in the asset or liability from period to period. We account for uncertain tax positions using a "more-likely-than-not" threshold. A tax benefit from an uncertain tax position is recognized if it is more-likely-than-not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position, or the statute of limitations concerning such issues lapses. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions — The functional currency of the Company’s foreign operations is the applicable local currency. The functional currency is translated into U.S. dollars for balance sheet accounts using currency exchange rates in effect as of the balance sheet date, and for revenue and expense accounts using a weighted-average exchange rate during the fiscal year. The translation adjustments are deferred as a separate component of Stockholders’ equity in Accumulated other comprehensive loss. Gains or losses resulting from transactions denominated in foreign currencies and intercompany debt that is not of a long-term investment nature are included in (Gain) loss on foreign currency exchange in the Consolidated Statements of Operations. Gains or losses resulting from intercompany debt that is designated a long-term investment are recorded as a separate component of Stockholders' equity in Accumulated other comprehensive loss. |
Restructuring Expenses | Restructuring Expenses |
Research and Development Costs | Research and Development Costs — We record research and development charges to expense as they are incurred and report them in General and administrative expense in our Consolidated Statements of Operations. |
Advertising Costs | Advertising Costs —Advertising costs are expensed as incurred and reported in Selling and distribution expense of our Consolidated Statements of Operations. |
Recently Issued Accounting Pronouncements | Adopted In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) , which removes certain exceptions to the general principles in Topic 740 and improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2020 with early adoption permitted. Amendments are to be applied prospectively, except for certain amendments that are to be applied either retrospectively or with a modified retrospective approach through a cumulative effect adjustment recorded to retained earnings. The Company early adopted this guidance during the first quarter of 2020. The adoption did not have a material impact on the Company's financial statements. In March 2020, the SEC amended Rules 3-10 and 3-16 of Regulation S-X regarding financial disclosure requirements for registered debt offerings involving subsidiaries as either issuers or guarantors and affiliates whose securities are pledged as collateral. This new guidance narrows the circumstances that require separate financial statements of subsidiary issuers and guarantors and streamlines the alternative disclosures required in lieu of those statements. The final rule also allows for the simplified disclosure to be included within Management’s Discussion and Analysis of Financial Condition and Results of Operations. This rule is effective January 4, 2021 with earlier adoption permitted. The Company early adopted this new rule during the first quarter of 2020. In October 2020, the FASB issued ASU 2020-09, Amendments to SEC Paragraphs Pursuant to SEC Release No. 33-10762 (Topic 470) , to reflect the SEC’s new disclosure rules on guaranteed debt securities offerings adopted by the Company in the first quarter of 2020. Not yet adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying GAAP to transactions affected by reference rate reform if certain criteria are met. These transactions include: contract modifications, hedging relationships, and the sale or transfer of debt securities classified as held-to-maturity. Entities may apply the ASU from March 12, 2020 through December 31, 2022. The Company is currently evaluating the impact of this new ASU on its Consolidated Financial Statements and related disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Property, Plant, and Equipment | Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets as follows: Asset Useful Life Buildings and improvements 12-40 years Machinery and equipment 3-15 years Office furniture and equipment 3-12 years December 31, 2020 2019 (In millions) Land $ 57.4 $ 53.7 Buildings and improvements 442.5 401.2 Machinery and equipment 1,355.0 1,230.1 Construction in progress 57.0 73.8 Total 1,911.9 1,758.8 Less accumulated depreciation (841.9) (713.6) Property, plant, and equipment, net $ 1,070.0 $ 1,045.2 |
Estimated Useful Lives of Intangible Assets | Identifiable intangible assets with finite lives are amortized over their estimated useful lives as follows: Asset Useful Life Customer-related 5 to 20 years Trademarks 10 to 20 years Non-competition agreements Based on the terms of the agreements Deferred financing costs associated with line-of-credit arrangements Based on the terms of the agreements Formulas/recipes 5 to 7 years Computer software 3 to 10 years The gross carrying amounts and accumulated amortization of intangible assets as of December 31, 2020 and 2019 are as follows. December 31, 2020 2019 Weighted Average Life Remaining (yrs.) Gross Accumulated Net Gross Accumulated Net (In millions) Intangible assets with finite lives: Customer-related 9.9 $ 848.5 $ (406.4) $ 442.1 $ 778.1 $ (355.2) $ 422.9 Contractual agreements — 0.5 (0.5) — 0.5 (0.5) — Trademarks 15.0 96.2 (31.7) 64.5 53.0 (27.1) 25.9 Formulas/recipes 6.0 25.3 (22.1) 3.2 22.1 (19.2) 2.9 Computer software 7.0 194.8 (112.0) 82.8 179.0 (98.0) 81.0 Total finite lived intangibles 10.0 1,165.3 (572.7) 592.6 1,032.7 (500.0) 532.7 Intangible assets with indefinite lives: Trademarks 22.4 — 22.4 22.0 — 22.0 Total intangible assets $ 1,187.7 $ (572.7) $ 615.0 $ 1,054.7 $ (500.0) $ 554.7 |
Restructuring Programs (Tables)
Restructuring Programs (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |
Aggregate Expenses Incurred Associated with Facility Closure | Below is a summary of costs by line item for the Restructuring Programs: Year Ended December 31, 2020 2019 2018 (In millions) Cost of sales $ 0.9 $ 4.4 $ 13.3 General and administrative 1.2 1.7 4.3 Other operating expense, net 71.1 99.3 149.1 Total $ 73.2 $ 105.4 $ 166.7 |
Reconciliation of Liabilities | The table below presents the exit cost liability activity for the Restructuring Programs as of December 31, 2020: Severance (In millions) Balance as of December 31, 2019 $ 5.6 Expenses recognized 6.0 Cash payments (6.7) Balance as of December 31, 2020 $ 4.9 |
TreeHouse 2020 | |
Restructuring Cost and Reserve [Line Items] | |
Aggregate Expenses Incurred Associated with Facility Closure | Below is a summary of the overall TreeHouse 2020 program costs by type: Year Ended December 31, Cumulative Costs Total Expected 2020 2019 2018 (In millions) Asset-related $ 0.2 $ 2.9 $ 9.2 $ 45.3 $ 45.3 Employee-related 4.1 10.8 36.2 60.2 60.2 Other costs 36.2 75.8 73.0 194.3 194.3 Total $ 40.5 $ 89.5 $ 118.4 $ 299.8 $ 299.8 |
Structure to Win | |
Restructuring Cost and Reserve [Line Items] | |
Aggregate Expenses Incurred Associated with Facility Closure | Below is a summary of costs by type associated with the Structure to Win program: Year Ended December 31, Cumulative Costs Total Expected Costs 2020 2019 2018 (In millions) Asset-related $ — $ 1.8 $ 2.1 $ 4.0 $ 4.0 Employee-related 9.4 4.8 21.4 35.5 35.5 Other costs 23.3 9.3 20.6 53.2 53.2 Total $ 32.7 $ 15.9 $ 44.1 $ 92.7 $ 92.7 |
Other Restructuring and Plant Closing Costs | |
Restructuring Cost and Reserve [Line Items] | |
Aggregate Expenses Incurred Associated with Facility Closure | Below is a summary of costs by type associated with the other restructuring and plant closing costs: Year Ended December 31, 2018 (In millions) Asset-related $ 1.3 Other closure costs 0.3 Total $ 1.6 |
Restructuring and Margin Improvement Activities Categories | |
Restructuring Cost and Reserve [Line Items] | |
Aggregate Expenses Incurred Associated with Facility Closure | The costs by activity for the Restructuring Programs are outlined below: Year Ended December 31, 2020 2019 2018 (In millions) TreeHouse 2020 $ 40.5 $ 89.5 $ 118.4 Structure to Win 32.7 15.9 44.1 Other restructuring and plant closing costs — — 4.2 Total Restructuring Programs $ 73.2 $ 105.4 $ 166.7 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: December 31, Balance Sheet Classification 2020 2019 (In millions) Assets Operating Operating lease right-of-use assets $ 160.7 $ 175.3 Finance Property, plant, and equipment, net 3.9 3.9 Total assets $ 164.6 $ 179.2 Liabilities Current liabilities Operating Accrued expenses $ 33.8 $ 32.0 Finance Current portion of long-term debt 1.6 1.3 Total current liabilities 35.4 33.3 Noncurrent liabilities Operating Operating lease liabilities 144.5 158.5 Finance Long-term debt 2.5 2.6 Total noncurrent liabilities 147.0 161.1 Total lease liabilities $ 182.4 $ 194.4 |
Weighted-average Discount Rates for Company's Operating and Finance Leases and Components of Lease Expense | The weighted-average discount rates for the Company's operating and finance leases are as follows: December 31, Weighted-average discount rate 2020 2019 Operating leases 4.5 % 4.7 % Finance leases 3.1 % 3.5 % The weighted-average remaining lease term of the Company's operating and finance leases are as follows: December 31, Weighted-average remaining lease term 2020 2019 Operating leases 7.4 years 7.9 years Finance leases 3.2 years 3.2 years The components of lease expense were as follows: Year Ended December 31, Statement of Operations Classification 2020 2019 (In millions) Operating lease cost Cost of sales and General and administrative $ 42.5 $ 46.6 Finance lease cost: Amortization of right-of-use assets Cost of sales and General and administrative 1.6 1.8 Interest on lease liabilities Interest expense 0.1 0.1 Total finance lease cost 1.7 1.9 Variable lease cost (1) Cost of sales and General and administrative 17.4 9.3 Net lease cost $ 61.6 $ 57.8 (1) Includes short-term leases, which are immaterial. |
Future Maturities of Finance Lease Liabilities | As of December 31, 2020, future maturities of lease liabilities were as follows: Operating Leases (1) Finance Leases (In millions) 2021 $ 40.2 $ 1.7 2022 35.3 1.2 2023 26.8 0.7 2024 20.3 0.5 2025 16.2 0.2 Thereafter 75.4 — Total lease payments 214.2 4.3 Less: Interest (35.9) (0.2) Present value of lease liabilities $ 178.3 $ 4.1 |
Future Maturities of Operating Lease Liabilities | As of December 31, 2020, future maturities of lease liabilities were as follows: Operating Leases (1) Finance Leases (In millions) 2021 $ 40.2 $ 1.7 2022 35.3 1.2 2023 26.8 0.7 2024 20.3 0.5 2025 16.2 0.2 Thereafter 75.4 — Total lease payments 214.2 4.3 Less: Interest (35.9) (0.2) Present value of lease liabilities $ 178.3 $ 4.1 |
Other Information Related to Leases | Other information related to leases were as follows: Year Ended December 31, 2020 2019 (In millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 40.6 $ 42.0 Operating cash flows from finance leases 0.1 0.1 Financing cash flows from finance leases 1.8 1.9 |
Receivable Sales Program (Table
Receivable Sales Program (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Receivable Sales Program | The following table includes the outstanding amount of accounts receivable sold under the Receivables Sales Program and the amount collected but not yet remitted to the financial institutions: December 31, 2020 2019 (In millions) Outstanding accounts receivable sold $ 284.3 $ 243.0 Collections not remitted to financial institutions 202.8 158.3 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | December 31, 2020 2019 (In millions) Raw materials and supplies $ 231.0 $ 205.5 Finished goods 367.6 338.5 Total inventories $ 598.6 $ 544.0 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Purchase Price Allocation to Net Tangible and Intangible Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary purchase price allocation of the fair value of net tangible and intangible assets acquired and liabilities assumed: (In millions) Inventories $ 20.0 Property, plant, and equipment, net 48.2 Customer relationships 68.0 Trade names 43.0 Formulas/recipes 2.3 Goodwill 57.8 Operating lease right-of-use assets 0.1 Assets acquired 239.4 Assumed liabilities (0.2) Total purchase price $ 239.2 |
Business Acquisition, Pro Forma Information | The pro forma results may not necessarily reflect actual results of operations that would have been achieved, nor are they necessarily indicative of future results of operations. Year Ended December 31, 2020 2019 (Unaudited, in millions) Pro forma net sales from continuing operations $ 4,550.4 $ 4,454.1 Pro forma net income (loss) from continuing operations 83.4 (106.3) |
Disposal Groups, Including Discontinued Operations | Results of discontinued operations are as follows: Year Ended December 31, 2020 2019 2018 (In millions) Net sales $ 220.8 $ 638.0 $ 1,226.6 Cost of sales 193.4 619.5 1,167.4 Selling, general, administrative and other operating expenses 17.3 55.2 78.7 Asset impairment 51.2 141.0 — Loss on sale of business — 98.4 — Other operating expense, net 0.8 — — Operating loss from discontinued operations (41.9) (276.1) (19.5) Interest and other expense 3.4 7.7 11.7 Income tax benefit (9.9) (33.1) (13.0) Net loss from discontinued operations $ (35.4) $ (250.7) $ (18.2) Assets and liabilities of discontinued operations presented in the Consolidated Balance Sheets as of December 31, 2020 and 2019 include the following: December 31, 2020 2019 (In millions) Inventories $ 33.3 $ 41.6 Property, plant, and equipment, net 65.9 64.4 Operating lease right-of-use assets 5.1 7.5 Goodwill 53.5 53.5 Intangible assets 38.6 38.6 Valuation allowance (125.7) (74.5) Total assets of discontinued operations $ 70.7 $ 131.1 Accrued expenses and other liabilities $ 1.1 $ 8.3 Operating lease liabilities 5.6 8.2 Total liabilities of discontinued operations $ 6.7 $ 16.5 The following table represents detail of assets held for sale as of December 31, 2019: December 31, 2019 (In millions) Inventories $ 9.4 Property, plant, and equipment, net 40.9 Goodwill 5.7 Intangible assets, net 9.4 Valuation allowance (41.1) Total assets held for sale $ 24.3 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets as follows: Asset Useful Life Buildings and improvements 12-40 years Machinery and equipment 3-15 years Office furniture and equipment 3-12 years December 31, 2020 2019 (In millions) Land $ 57.4 $ 53.7 Buildings and improvements 442.5 401.2 Machinery and equipment 1,355.0 1,230.1 Construction in progress 57.0 73.8 Total 1,911.9 1,758.8 Less accumulated depreciation (841.9) (713.6) Property, plant, and equipment, net $ 1,070.0 $ 1,045.2 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2019 are as follows: Meal Preparation Snacking & Beverages Total (In millions) Balance at January 1, 2019, before accumulated impairment losses $ 1,261.6 $ 890.8 $ 2,152.4 Accumulated impairment losses (11.5) (33.0) (44.5) Balance at January 1, 2019 1,250.1 857.8 2,107.9 Reclassification to assets held for sale (1) — (5.7) (5.7) Foreign currency exchange adjustments 2.9 2.2 5.1 Balance at December 31, 2019 1,253.0 854.3 2,107.3 Acquisitions 68.5 — 68.5 Foreign currency exchange adjustments 1.7 1.2 2.9 Balance at December 31, 2020 $ 1,323.2 $ 855.5 $ 2,178.7 (1) Relates to the reclassification of goodwill allocated to the In-Store Bakery facilities divestiture. Refer to Note 7 for additional information. |
Gross Carrying Amounts and Accumulated Amortization of Intangible Assets, with Finite Lives | Identifiable intangible assets with finite lives are amortized over their estimated useful lives as follows: Asset Useful Life Customer-related 5 to 20 years Trademarks 10 to 20 years Non-competition agreements Based on the terms of the agreements Deferred financing costs associated with line-of-credit arrangements Based on the terms of the agreements Formulas/recipes 5 to 7 years Computer software 3 to 10 years The gross carrying amounts and accumulated amortization of intangible assets as of December 31, 2020 and 2019 are as follows. December 31, 2020 2019 Weighted Average Life Remaining (yrs.) Gross Accumulated Net Gross Accumulated Net (In millions) Intangible assets with finite lives: Customer-related 9.9 $ 848.5 $ (406.4) $ 442.1 $ 778.1 $ (355.2) $ 422.9 Contractual agreements — 0.5 (0.5) — 0.5 (0.5) — Trademarks 15.0 96.2 (31.7) 64.5 53.0 (27.1) 25.9 Formulas/recipes 6.0 25.3 (22.1) 3.2 22.1 (19.2) 2.9 Computer software 7.0 194.8 (112.0) 82.8 179.0 (98.0) 81.0 Total finite lived intangibles 10.0 1,165.3 (572.7) 592.6 1,032.7 (500.0) 532.7 Intangible assets with indefinite lives: Trademarks 22.4 — 22.4 22.0 — 22.0 Total intangible assets $ 1,187.7 $ (572.7) $ 615.0 $ 1,054.7 $ (500.0) $ 554.7 |
Estimated Amortization Expense on Intangible Assets | Estimated amortization expense on intangible assets for the next five years is as follows: (In millions) 2021 $ 71.1 2022 68.7 2023 65.8 2024 65.3 2025 64.5 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accrued expenses consist of: December 31, 2020 2019 (In millions) Payroll and benefits $ 90.8 $ 50.4 Trade promotion liabilities 39.6 37.9 Operating lease liabilities 33.8 32.0 Interest 20.4 20.0 Taxes 6.8 14.5 Health insurance, workers' compensation, and other insurance costs 20.2 23.9 Derivative contracts 98.1 57.2 Other accrued liabilities 30.9 37.3 Total $ 340.6 $ 273.2 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of Loss Before Income Taxes | The components of Income (loss) before income taxes are as follows: Year Ended December 31, 2020 2019 2018 (In millions) Domestic $ 9.8 $ (154.4) $ (72.5) Foreign 7.3 (1.4) 14.9 Income (loss) before income taxes $ 17.1 $ (155.8) $ (57.6) |
Components of Provision for Income Taxes | The following table presents the components of the 2020, 2019, and 2018 provision for income taxes: Year Ended December 31, 2020 2019 2018 (In millions) Current: Federal $ (95.7) $ 13.2 $ (9.0) State 1.6 2.9 5.5 Foreign (1.4) 1.7 8.9 Total current (95.5) 17.8 5.4 Deferred: Federal 69.8 (48.4) (6.0) State (2.9) (11.8) (6.6) Foreign (3.5) (3.1) (4.2) Total deferred 63.4 (63.3) (16.8) Total income tax benefit $ (32.1) $ (45.5) $ (11.4) |
Reconciliation of Income Tax Expense Computed at U.S. Federal Statutory Tax Rate to Income Tax Expense | The following is a reconciliation of income tax benefit computed at the U.S. federal statutory tax rate to the income tax benefit reported in the Consolidated Statements of Operations: Year Ended December 31, 2020 2019 2018 (In millions) Tax at statutory rate $ 3.6 $ (32.7) $ (12.1) State income taxes (1.0) (7.1) (0.3) Tax benefit of cross-border intercompany financing structure (1.4) (2.1) (2.3) Repatriation of intangibles — (4.6) — CARES Act (30.3) — — Disallowed officers' compensation 2.6 1.6 6.3 Excess tax benefits related to stock-based compensation 1.7 (0.1) 0.8 Transition tax — (1.9) (0.4) Other tax credits (0.9) (0.9) (1.3) Valuation allowance (6.2) 3.4 (1.1) Uncertain tax positions (2.5) (2.5) (2.9) Return-to-provision 0.2 0.1 (0.6) Indemnification 1.1 0.3 (0.4) Gain on divestiture — — 2.2 Remeasurement of deferred tax assets/liabilities — — (1.0) Other, net 1.0 1.0 1.7 Total provision for income taxes $ (32.1) $ (45.5) $ (11.4) |
Tax Effects of Temporary Differences Giving Rise to Deferred Income Tax Assets and Liabilities | The tax effects of temporary differences giving rise to deferred income tax assets and liabilities were: December 31, 2020 2019 (In millions) Deferred tax assets: Pension and postretirement benefits $ 13.6 $ 16.7 Accrued liabilities 23.5 21.4 Stock compensation 11.8 12.6 Lease liabilities 46.2 51.4 Interest limitation carryover 3.9 30.3 Loss and credit carryovers 213.6 201.7 Unrealized foreign exchange loss 21.3 15.7 Other 12.6 11.9 Total deferred tax assets 346.5 361.7 Valuation allowance (161.0) (167.9) Total deferred tax assets, net of valuation allowance 185.5 193.8 Deferred tax liabilities: Fixed assets and intangible assets (291.3) (238.2) Lease assets (45.1) (50.5) Inventory reserves — (2.5) Total deferred tax liabilities (336.4) (291.2) Net deferred income tax liability $ (150.9) $ (97.4) |
Summary of Operating Loss Carryforwards | The following table details the Company's tax attributes primarily related to net operating losses, tax credits, and capital losses for which it has recorded deferred tax assets: Tax Attributes Gross Attribute Amount Net Attribute Amount Expiration Years (In millions) U.S. net operating losses $ 2.4 $ 0.5 2034 Foreign net operating losses 32.1 8.3 2028 – 2040 State net operating losses 257.0 11.3 2021 – 2040 Federal credits — 19.4 2027 – 2040 State credits — 16.7 2021 – 2034 Federal capital loss 586.2 123.1 2024 State capital loss 586.2 26.0 2024 Other 8.3 2022 – 2036 Total $ 213.6 |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Year Ended December 31, 2020 2019 2018 (In millions) Unrecognized tax benefits beginning balance $ 12.3 $ 17.3 $ 26.4 Additions (reductions) based on tax positions of prior years 2.4 (1.1) (0.6) Reductions resulting from dispositions — (1.1) — Reductions due to statute lapses (3.4) (2.8) (8.3) Reductions related to settlements with taxing authorities (0.7) (0.1) — Foreign currency translation 0.1 0.1 (0.2) Unrecognized tax benefits ending balance $ 10.7 $ 12.3 $ 17.3 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | December 31, 2020 2019 (In millions) Term Loan A $ 453.4 $ 458.4 Term Loan A-1 672.6 681.6 2022 Notes — 375.9 2024 Notes 602.9 602.9 2028 Notes 500.0 — Finance leases 4.1 3.9 Total outstanding debt 2,233.0 2,122.7 Deferred financing costs (18.3) (15.7) Less current portion (15.7) (15.3) Total long-term debt $ 2,199.0 $ 2,091.7 |
Scheduled Maturities of Outstanding Debt, Excluding Deferred Financing Costs | The scheduled maturities of outstanding debt, excluding deferred financing costs, at December 31, 2020 are as follows (in millions): 2021 $ 15.7 2022 15.2 2023 660.2 2024 608.4 2025 433.5 Thereafter 500.0 Total outstanding debt $ 2,233.0 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Repurchases of Common Stock | The following table summarizes the Company's repurchases of its common stock: Year Ended December 31, 2020 2019 2018 (In millions, except per share data) Shares repurchased 0.6 — 1.2 Weighted average price per share $ 38.64 $ — $ 45.78 Total cost $ 25.0 $ — $ 54.6 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Summary of Effect of Share-Based Compensation Awards on Weighted Average Number of Shares Outstanding Used in Calculating Diluted Earnings Per Share | The following table summarizes the effect of the share-based compensation awards on the weighted average number of shares outstanding used in calculating diluted earnings (loss) per share: Year Ended December 31, 2020 2019 2018 (In millions) Weighted average common shares outstanding 56.5 56.2 56.0 Assumed exercise/vesting of equity awards (1) 0.2 — — Weighted average diluted common shares outstanding 56.7 56.2 56.0 (1) Incremental shares from equity awards are computed by the treasury stock method. For the years ended December 31, 2019 and 2018, weighted average common shares outstanding is the same for the computations of both basic and diluted shares outstanding because the Company had a net loss for the period. Equity awards, excluded from our computation of diluted earnings per share because they were anti-dilutive, were 1.4 million, 1.6 million, and 1.7 million for the years ended December 31, 2020, 2019, and 2018, respectively. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Total Compensation Expense | Total compensation expense related to stock-based payments and the related income tax benefit recognized in Net income (loss) from continuing operations are as follows: Year Ended December 31, 2020 2019 2018 (In millions) Compensation expense related to stock-based payments $ 26.1 $ 22.6 $ 30.7 Related income tax benefit 6.7 5.8 7.7 |
Summary of Stock Option Activity | The following table summarizes stock option activity during 2020: Employee Weighted Weighted Aggregate (In thousands) (In millions) Outstanding, at January 1, 2020 1,528 $ 74.58 3.7 $ 0.8 Forfeited (8) 82.77 Exercised (80) 40.01 Expired (128) 66.10 Outstanding, at December 31, 2020 1,312 77.62 3.1 — Vested/expected to vest, at December 31, 2020 1,312 77.62 3.1 — Exercisable, at December 31, 2020 1,312 77.62 3.1 — |
Highlight of Stock Options Activity | Year Ended December 31, 2020 2019 2018 (In millions) Intrinsic value of stock options exercised $ 0.7 $ 0.1 $ 3.8 Tax benefit recognized from stock option exercises 0.2 — 0.7 |
Summary of Restricted Stock Unit Activity | The following table summarizes the restricted stock unit activity during the year ended December 31, 2020: Employee Weighted Director Weighted (In thousands) (In thousands) Outstanding, at January 1, 2020 615 $ 54.58 116 $ 58.30 Granted 429 44.09 33 51.40 Vested (242) 55.45 (24) 66.79 Forfeited (95) 54.52 — — Outstanding, at December 31, 2020 707 47.92 125 54.67 Vested and deferred, at December 31, 2020 91 55.88 |
Highlights of Restricted Stock Unit Activity | Year Ended December 31, 2020 2019 2018 (In millions) Fair value of vested restricted stock units $ 11.1 $ 19.5 $ 16.6 Tax benefit recognized from vested restricted stock units 2.0 3.7 2.5 |
Summary of Performance Unit Activity | The following table summarizes the performance unit activity during the year ended December 31, 2020: Performance Weighted (In thousands) Unvested, at January 1, 2020 482 $ 61.28 Granted 221 44.19 Vested (75) 60.12 Forfeited (87) 72.70 Unvested, at December 31, 2020 541 52.38 |
Highlight of Performance Unit Activity | Year Ended December 31, 2020 2019 2018 (In millions) Fair value of vested performance units $ 3.3 $ 0.9 $ 7.6 Tax benefit recognized from performance units vested 0.7 0.2 0.1 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss Net of Tax Except for Foreign Currency Translation Adjustment | Accumulated other comprehensive loss consists of the following components, all of which are net of tax: Foreign Unrecognized Accumulated (In millions) Balance at January 1, 2018 $ (57.2) $ (4.3) $ (61.5) Other comprehensive loss before reclassifications (34.5) (0.5) (35.0) Reclassifications from accumulated other comprehensive loss (3) — 0.5 0.5 Reclassifications from accumulated other — (1.1) (1.1) Other comprehensive loss (34.5) (1.1) (35.6) Balance at December 31, 2018 (91.7) (5.4) (97.1) Other comprehensive income before reclassifications 12.3 0.3 12.6 Reclassifications from accumulated other comprehensive loss (3) — 0.5 0.5 Other comprehensive income 12.3 0.8 13.1 Balance at December 31, 2019 (79.4) (4.6) (84.0) Other comprehensive income before reclassifications 12.1 7.4 19.5 Reclassifications from accumulated other comprehensive loss (3) — 0.5 0.5 Other comprehensive income 12.1 7.9 20.0 Balance at December 31, 2020 $ (67.3) $ 3.3 $ (64.0) (1) The tax impact of the foreign currency translation adjustment was insignificant for the years ended December 31, 2020, 2019, and 2018. (2) The unrecognized pension and postretirement benefits are presented net of tax of $2.6 million for the year ended December 31, 2020, and the tax impact was insignificant for the years ended December 31, 2019 and 2018. |
Employee Pension and Postreti_2
Employee Pension and Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Fair Value of Pension Plan Assets, by Asset Category | The fair value of the Company’s pension plan assets at December 31, 2020 and 2019 was as follows: December 31, Pricing Category 2020 2019 (In millions) Cash and cash equivalents (a) Level 1 $ 1.6 $ 1.8 Investments valued using NAV per share: Equity funds (b) 137.3 118.4 Fixed income funds (c) 170.2 157.3 Alternative funds (d) 16.8 16.5 Total plan assets $ 325.9 $ 294.0 (a) Includes cash and cash equivalents such as short-term marketable securities. Cash and cash equivalents include money market funds traded in active markets. (b) This investment class includes domestic and international equity funds that includes both large and small/mid cap funds that track the S&P index as well as other equity indices. The Company elected the NAV practical expedient to value these funds. (c) This investment class includes U.S. Treasury index funds as well as bond funds representative of the United States bond and debt markets with varying benchmark indices. The Company elected the NAV practical expedient to value these funds. |
Summarized Information about Pension and Postretirement Benefit Plans | The following table summarizes information about our pension and postretirement benefit plans for the years ended December 31, 2020 and 2019: Pension Benefits Postretirement 2020 2019 2020 2019 (in millions) Change in benefit obligations: Benefit obligation, at beginning of year $ 336.0 $ 300.0 $ 27.5 $ 28.1 Service cost 1.8 1.5 — — Interest cost 10.5 12.2 0.8 1.1 Curtailment (1) — (0.5) — — Actuarial losses (gains) (2) 24.9 40.3 (0.7) (0.1) Benefits paid (18.1) (17.5) (1.5) (1.6) Benefit obligation, at end of year $ 355.1 $ 336.0 $ 26.1 $ 27.5 Change in plan assets: Fair value of plan assets, at beginning of year $ 294.0 $ 252.0 $ — $ — Actual gain on plan assets 48.5 55.8 — — Company contributions 1.5 3.7 1.5 1.6 Benefits paid (18.1) (17.5) (1.5) (1.6) Fair value of plan assets, at end of year $ 325.9 $ 294.0 $ — $ — Funded status of the plan $ (29.2) $ (42.0) $ (26.1) $ (27.5) Amounts recognized in the Consolidated Balance Sheets: Current liability $ (0.7) $ (0.7) $ (1.5) $ (1.6) Non-current liability (28.5) (41.3) (24.6) (25.9) Net amount recognized $ (29.2) $ (42.0) $ (26.1) $ (27.5) Amounts recognized in Accumulated other Net actuarial (gain) loss $ (3.9) $ 5.8 $ (0.9) $ (0.2) Prior service cost 0.4 0.5 — — Total, before tax effect $ (3.5) $ 6.3 $ (0.9) $ (0.2) (1) Curtailment relates to the closure of the Company's Battle Creek, Michigan facility. (2) The change in actuarial loss (gain) was primarily due to the decrease in discount rates from 3.25% as of December 31, 2019 to 2.50% as of December 31, 2020. |
Accumulated Benefit Obligation and Weighted Average Assumptions Used | Pension Benefits 2020 2019 (In millions) Accumulated benefit obligation $ 353.5 $ 333.9 Weighted average assumptions used to determine Discount rate 2.50 % 3.25 % Rate of compensation increases 3.00 % 3.50%-4.00% |
Key Actuarial Assumptions Used to Determine Postretirement Benefit Obligations | The key actuarial assumptions used to determine the postretirement benefit obligations as of December 31, 2020 and 2019 are as follows: 2020 2019 Pre-65 Post-65 Pre-65 Post-65 Health care cost trend rates: Health care cost trend rate for next year 6.61 % 7.26 % 7.29 % 8.16 % Ultimate rate 4.50 % 4.50 % 4.50 % 4.50 % Discount rate 2.50 % 2.50 % 3.25 % 3.25 % Year ultimate rate achieved 2029 2029 2028 2028 |
Summary of Net Periodic Cost of Pension and Postretirement Benefit Plans | The following table summarizes the net periodic cost of our pension and postretirement benefit plans for the years ended December 31, 2020, 2019, and 2018: Pension Benefits Postretirement Benefits 2020 2019 2018 2020 2019 2018 (In millions) (In millions) Components of net periodic costs: Service cost $ 1.8 $ 1.5 $ 1.9 $ — $ — $ — Interest cost 10.5 12.2 11.9 0.8 1.1 1.2 Expected return on plan assets (14.5) (15.2) (15.6) — — — Amortization of unrecognized prior service cost 0.2 0.2 0.2 — — — Amortization of unrecognized net loss 0.6 0.5 0.5 — — — Curtailment (1) — (0.5) — — — — Net periodic (benefit) cost $ (1.4) $ (1.3) $ (1.1) $ 0.8 $ 1.1 $ 1.2 |
Weighted Average Assumptions Used | Pension Benefits Postretirement Benefits 2020 2019 2018 2020 2019 2018 Weighted average assumptions used to determine the periodic benefit costs: Discount rate 3.25 % 4.40 % 3.70 % 3.25 % 4.40 % 3.70 % Rate of compensation increases 3.50%-4.00% 3.50%-4.00% 3.50%-4.00% — — — Expected return on plan assets 5.10 % 5.91 % 5.80 % — — — |
Estimated Future Pension and Postretirement Benefit Payments | Estimated future pension and postretirement benefit payments from the plans are as follows: Pension Postretirement (In millions) 2021 $ 20.0 $ 1.5 2022 20.3 1.5 2023 20.8 1.5 2024 22.0 1.6 2025 20.4 1.6 2026-2030 97.1 7.8 |
Multiemployer Pension Plans | The following table lists information about the Company's individually significant multiemployer pension plans: Pension TreeHouse Foods Expiration EIN / Pension Plan Year Ended FIP Contributions Surcharge Of Collective Plan Name Plan Number 2019 2018 (yes or no) 2020 2019 2018 (yes or no) Agreement(s) Bakery and Confectionery Union and Industry 7/22/2023 International Pension Fund 52-6118572 / 001 Red Red Yes $ 1.6 $ 1.5 $ 1.4 Yes 12/4/2023 Central States Southeast and Southwest Areas Pension 6/30/2021 Fund 36-6044243 / 001 Red Red Yes 1.1 1.0 0.8 Yes 12/31/2022 Retail, Wholesale and Department Store International Union and Industry Pension Fund 63-0708442 / 001 Yellow Red Yes — 0.3 0.6 Yes (1) Rockford Area Dairy Industry Local 754, Intl. Brotherhood of Teamsters Retirement Pension Plan 36-6067654 / 001 Green Green No 0.6 0.5 0.5 No 4/30/2021 Western Conference of Teamsters Pension Fund 91-6145047 / 001 Green Green No — — 0.8 No (2) (1) During 2019, the Company executed a complete withdrawal from the Retail, Wholesale, and Department Store International Union and Industry Pension Fund and settled a withdrawal liability of $4.3 million. (2) The Company partially withdrew from the Western Conference of Teamsters Pension Plan Trust as a result of the closure of its City of Industry, California facility during 2016. As a result, there is no collective bargaining agreement related to this plan. Years Contribution to Plan Exceeded 5% of Total Contributions Plan Name: (as of December 31 of the Plan's Year-End) Rockford Area Dairy Industry Local 754, Intl. Brotherhood of Teamsters Retirement Pension Plan 2020, 2019, and 2018 |
Other Operating Expense, Net (T
Other Operating Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Other Operating Expense, Net | The Company incurred other operating expense for the years ended December 31, 2020, 2019, and 2018, which consisted of the following: Year Ended December 31, 2020 2019 2018 (In millions) Restructuring programs (1) $ 71.1 $ 99.3 $ 149.1 (Gain) loss on divestitures (2) 0.3 — (14.3) Other (0.3) 0.3 0.9 Total other operating expense, net $ 71.1 $ 99.6 $ 135.7 (1) Refer to Note 3 for additional information. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative, Fair Value, and Location on Condensed Consolidated Balance Sheet | The following table identifies the fair value of each derivative instrument: December 31, 2020 2019 (In millions) Asset derivatives Commodity contracts $ 12.6 $ 0.8 Interest rate swap agreements — 0.8 $ 12.6 $ 1.6 Liability derivatives Commodity contracts $ 0.7 $ 0.6 Foreign currency contracts — 0.1 Interest rate swap agreements 97.4 56.5 $ 98.1 $ 57.2 |
Gains and Losses on Derivative Contracts | We recognized the following gains and losses on our derivative contracts in the Consolidated Statements of Operations: Location of Gain (Loss) Year Ended Recognized in Net Income (Loss) 2020 2019 2018 (In millions) Mark-to-market unrealized (loss) gain: Commodity contracts Other expense, net $ 11.7 $ 1.5 $ (2.7) Foreign currency contracts Other expense, net 0.1 (1.6) 1.0 Interest rate swap agreements Other expense, net (41.7) (46.9) (20.8) Total unrealized loss $ (29.9) $ (47.0) $ (22.5) Realized gain (loss): Commodity contracts Manufacturing related to Cost of sales and transportation related to Selling and distribution $ (9.8) $ 1.5 $ 3.7 Foreign currency contracts Cost of sales 0.4 0.5 1.6 Interest rate swap agreements Interest expense (18.4) 6.5 5.5 Total realized (loss) gain $ (27.8) $ 8.5 $ 10.8 Total loss $ (57.7) $ (38.5) $ (11.7) |
Segment and Geographic Inform_2
Segment and Geographic Information and Major Customers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Financial Information Relating to Reportable Segments | Financial information relating to the Company’s reportable segments on a continuing operations basis, revised to reflect the new segment structure, is as follows: Year Ended December 31, 2020 2019 2018 (In millions) Net sales to external customers: Meal Preparation $ 2,701.4 $ 2,680.7 $ 2,871.6 Snacking & Beverages 1,649.4 1,608.2 1,716.2 Unallocated (1.1) — — Total $ 4,349.7 $ 4,288.9 $ 4,587.8 Direct operating income: Meal Preparation $ 370.6 $ 381.3 $ 418.9 Snacking & Beverages 234.6 192.8 180.2 Total 605.2 574.1 599.1 Unallocated selling, general, and administrative expenses (277.2) (270.9) (288.7) Unallocated cost of sales (1) (36.0) (16.5) (11.1) Unallocated corporate expense and other (1) (142.9) (302.8) (215.9) Operating income (loss) $ 149.1 $ (16.1) $ 83.4 Depreciation: Meal Preparation $ 57.8 $ 60.2 $ 55.1 Snacking & Beverages 64.6 68.6 76.3 Corporate office (2) 10.1 7.7 13.6 Total $ 132.5 $ 136.5 $ 145.0 (1) Includes charges related to restructuring programs and other costs managed at corporate. Other costs include incremental expenses directly attributable to our response to the COVID-19 pandemic, which included supplemental pay to our front-line personnel, additional protective equipment for employees, and additional sanitation measures. Asset impairments are included in Unallocated corporate expense and other. (2) Includes accelerated depreciation related to restructurings. December 31, 2020 2019 (In millions) Long-lived assets: United States $ 927.4 $ 899.6 Canada 125.2 129.1 Other 17.4 16.5 Total $ 1,070.0 $ 1,045.2 |
Schedule of Segment Revenue Disaggregated by Product Category | Segment revenue disaggregated by product category groups are as follows: Year Ended December 31, 2020 2019 2018 (In millions) Center store grocery $ 1,700.8 $ 1,763.1 $ 1,871.9 Main course 1,000.6 917.6 999.7 Total Meal Preparation 2,701.4 2,680.7 2,871.6 Sweet & savory snacks 1,177.2 1,220.1 1,306.3 Beverages & drink mixes 472.2 388.1 409.9 Total Snacking & Beverages 1,649.4 1,608.2 1,716.2 Unallocated net sales (1.1) — — Total net sales $ 4,349.7 $ 4,288.9 $ 4,587.8 Segment revenue disaggregated by sales channels are as follows: Year Ended December 31, 2020 2019 2018 (In millions) Retail grocery $ 3,581.7 $ 3,419.2 $ 3,610.7 Food-away-from-home 245.6 357.2 383.7 Industrial, co-manufacturing, and other 522.4 512.5 593.4 Total net sales $ 4,349.7 $ 4,288.9 $ 4,587.8 |
Schedule of Concentration of Risk by Risk Factor | When taking into account those receivables sold under our Receivables Sales Program (refer to Note 5 for more information), total trade receivables with the following customers represented more than 10.0% of our total trade receivables as of December 31, 2020 and 2019: December 31, 2020 2019 Walmart Inc. 17.3 % (1) Costco Wholesale Corporation (1) 18.2 % (1) Less than 10% of our total trade receivables. |
Quarterly Results of Operatio_2
Quarterly Results of Operations (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Unaudited Quarterly Results of Operations | The following is a summary of our unaudited quarterly results of operations for 2020: Quarter First Second Third Fourth (In millions, except per share data) Fiscal 2020 Net sales $ 1,084.9 $ 1,041.9 $ 1,045.7 $ 1,177.2 Gross profit 194.9 191.2 188.2 227.9 (Loss) income before income taxes from continuing operations (73.0) 11.2 22.4 56.5 Net (loss) income from continuing operations (32.8) (2.6) 11.4 73.2 Net income (loss) from discontinued operations 1.6 1.1 0.7 (38.8) Net (loss) income (31.2) (1.5) 12.1 34.4 Earnings (loss) per common share - basic: Continuing operations $ (0.58) $ (0.05) $ 0.20 $ 1.30 Discontinued operations 0.03 0.02 0.01 (0.69) Earnings (loss) per share - basic (1) $ (0.55) $ (0.03) $ 0.21 $ 0.61 Earnings (loss) per common share - diluted: Continuing operations $ (0.58) $ (0.05) $ 0.20 $ 1.29 Discontinued operations 0.03 0.02 0.01 (0.69) Earnings (loss) per share - diluted (1) $ (0.55) $ (0.03) $ 0.21 $ 0.61 (1) The sum of the individual per share amounts may not add due to rounding. In addition, the sum of the quarters may not equal the total year amount due to the impact of changes in average quarterly shares outstanding and rounding. The following is a summary of our unaudited quarterly results of operations for 2019: Quarter First Second Third Fourth (In millions, except per share data) Fiscal 2019 Net sales $ 1,066.8 $ 1,025.3 $ 1,057.3 $ 1,139.5 Gross profit 196.2 189.2 186.3 225.1 (Loss) income before income taxes from continuing operations (21.4) (56.9) (97.4) 19.9 Net (loss) income from continuing operations (14.5) (50.1) (61.0) 15.3 Net (loss) income from discontinued operations (12.4) (121.7) (116.8) 0.2 Net (loss) income (26.9) (171.8) (177.8) 15.5 Earnings (loss) per common share - basic: Continuing operations $ (0.26) $ (0.89) $ (1.08) $ 0.27 Discontinued operations (0.22) (2.16) (2.07) — Earnings (loss) per share - basic (1) $ (0.48) $ (3.05) $ (3.16) $ 0.27 Earnings (loss) per common share - diluted: Continuing operations $ (0.26) $ (0.89) $ (1.08) $ 0.27 Discontinued operations (0.22) (2.16) (2.07) — Earnings (loss) per share - diluted (1) $ (0.48) $ (3.05) $ (3.16) $ 0.27 (1) The sum of the individual per share amounts may not add due to rounding. In addition, the sum of the quarters may not equal the total year amount due to the impact of changes in average quarterly shares outstanding and rounding. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Owned direct and indirect subsidiaries, percentage | 100.00% | ||
Cash and cash equivalents | $ 364.6 | $ 202.3 | |
Research and development charges | 16.6 | 18.8 | $ 19.2 |
Shipping and Handling | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Shipping and handling costs | 153.6 | 148.3 | $ 199.2 |
Foreign Jurisdictions | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Cash and cash equivalents | $ 92.3 | $ 72.7 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Estimated Useful Lives of Assets (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Buildings and improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 12 years |
Buildings and improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 40 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 15 years |
Office furniture and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Office furniture and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 12 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Estimated Useful Lives of Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 10 years |
Customer-related | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 5 years |
Customer-related | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 20 years |
Trademarks | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 15 years |
Trademarks | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 10 years |
Trademarks | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 20 years |
Formulas/recipes | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 6 years |
Formulas/recipes | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 5 years |
Formulas/recipes | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 7 years |
Computer software | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 7 years |
Computer software | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 3 years |
Computer software | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 10 years |
Restructuring Programs - Aggreg
Restructuring Programs - Aggregate Expenses Incurred Associated with Facility Closure (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 73.2 | $ 105.4 | $ 166.7 |
Cost of sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0.9 | 4.4 | 13.3 |
General and administrative | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 1.2 | 1.7 | 4.3 |
Other operating expense, net | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 71.1 | 99.3 | 149.1 |
Restructuring and Margin Improvement Activities Categories | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 73.2 | 105.4 | 166.7 |
TreeHouse 2020 | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 40.5 | 89.5 | 118.4 |
TreeHouse 2020 | Restructuring and Margin Improvement Activities Categories | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 40.5 | 89.5 | 118.4 |
Structure to Win | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 32.7 | 15.9 | 44.1 |
Structure to Win | Restructuring and Margin Improvement Activities Categories | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 32.7 | 15.9 | 44.1 |
Other restructuring and plant closing costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 1.6 | ||
Other restructuring and plant closing costs | Restructuring and Margin Improvement Activities Categories | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 0 | $ 0 | $ 4.2 |
Restructuring Programs - Reconc
Restructuring Programs - Reconciliation of Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Reserve [Roll Forward] | |||
Expenses recognized | $ 73.2 | $ 105.4 | $ 166.7 |
Other Restructuring and Plant Closing Costs | |||
Restructuring Reserve [Roll Forward] | |||
Expenses recognized | $ 1.6 | ||
Other Restructuring and Plant Closing Costs | Severance | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 5.6 | ||
Expenses recognized | 6 | ||
Cash payments | (6.7) | ||
Ending Balance | $ 4.9 | $ 5.6 |
Restructuring Programs - Additi
Restructuring Programs - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)facility | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 73.2 | $ 105.4 | $ 166.7 | |
Restructuring costs other than facility closing | 2.6 | |||
TreeHouse 2020 | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 40.5 | 89.5 | 118.4 | |
Total expected costs | 299.8 | |||
TreeHouse 2020 | Visalia California Facility Closure | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 22.1 | |||
TreeHouse 2020 | Dothan Alabama Battle Creek Michigan and Minneapolis Minnesota | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 29.7 | |||
Number of facilities | facility | 3 | |||
Structure to Win | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 32.7 | 15.9 | $ 44.1 | |
Total expected costs | $ 92.7 | $ 60.4 |
Restructuring Programs - Overal
Restructuring Programs - Overall Tree House 2020 Program Costs By Type (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 73.2 | $ 105.4 | $ 166.7 |
TreeHouse 2020 | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 40.5 | 89.5 | 118.4 |
Cumulative Costs To Date | 299.8 | ||
Total Expected Costs | 299.8 | ||
Asset-related | TreeHouse 2020 | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0.2 | 2.9 | 9.2 |
Cumulative Costs To Date | 45.3 | ||
Total Expected Costs | 45.3 | ||
Employee-related | TreeHouse 2020 | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 4.1 | 10.8 | 36.2 |
Cumulative Costs To Date | 60.2 | ||
Total Expected Costs | 60.2 | ||
Other costs | TreeHouse 2020 | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 36.2 | $ 75.8 | $ 73 |
Cumulative Costs To Date | 194.3 | ||
Total Expected Costs | $ 194.3 |
Restructuring Programs - Over_2
Restructuring Programs - Overall Structure to Win 2020 Program Costs By Type (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 73.2 | $ 105.4 | $ 166.7 |
Structure to Win | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 32.7 | 15.9 | 44.1 |
Cumulative Costs To Date | 92.7 | ||
Total Expected Costs | 92.7 | 60.4 | |
Asset-related | Structure to Win | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | 1.8 | 2.1 |
Cumulative Costs To Date | 4 | ||
Total Expected Costs | 4 | ||
Employee-related | Structure to Win | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 9.4 | 4.8 | 21.4 |
Cumulative Costs To Date | 35.5 | ||
Total Expected Costs | 35.5 | ||
Other costs | Structure to Win | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 23.3 | $ 9.3 | $ 20.6 |
Cumulative Costs To Date | 53.2 | ||
Total Expected Costs | $ 53.2 |
Restructuring Programs - Over_3
Restructuring Programs - Overall Restructuring and Plant Costs By Type (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 73.2 | $ 105.4 | $ 166.7 |
Other restructuring and plant closing costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 1.6 | ||
Other restructuring and plant closing costs | Asset-related | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 1.3 | ||
Other restructuring and plant closing costs | Other costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 0.3 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | ||
Lessee, operating and financing leases, renewal term (in years) | 28 years | |
Lessee, operating and financing leases, termination term (in years) | 1 year | |
Rent expense | $ 51.6 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, operating and financing leases, remaining term of contract (in years) | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, operating and financing leases, remaining term of contract (in years) | 13 years |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Operating | $ 160.7 | $ 175.3 |
Finance | 3.9 | 3.9 |
Total assets | 164.6 | 179.2 |
Current liabilities | ||
Operating | 33.8 | 32 |
Finance | 1.6 | 1.3 |
Total current liabilities | 35.4 | 33.3 |
Noncurrent liabilities | ||
Operating | 144.5 | 158.5 |
Finance | 2.5 | 2.6 |
Total noncurrent liabilities | 147 | 161.1 |
Total lease liabilities | $ 182.4 | $ 194.4 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | us-gaap:AccruedLiabilitiesCurrent |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent | us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligations | us-gaap:LongTermDebtAndCapitalLeaseObligations |
Leases - Weighted-average Disco
Leases - Weighted-average Discount Rates for Operating and Finance Leases (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Weighted-average discount rate, Operating leases | 4.50% | 4.70% |
Weighted-average discount rate, Finance leases | 3.10% | 3.50% |
Leases - Weighted-average Remai
Leases - Weighted-average Remaining Lease Term of Operating and Finance Leases (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Weighted-average remaining lease term, Operating leases | 7 years 4 months 24 days | 7 years 10 months 24 days |
Weighted-average remaining lease term, Finance leases | 3 years 2 months 12 days | 3 years 2 months 12 days |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 42.5 | $ 46.6 |
Finance lease cost: | ||
Amortization of right-of-use assets | 1.6 | 1.8 |
Interest on lease liabilities | 0.1 | 0.1 |
Total finance lease cost | 1.7 | 1.9 |
Variable lease cost | 17.4 | 9.3 |
Net lease cost | $ 61.6 | $ 57.8 |
Leases - Operating and Finance
Leases - Operating and Finance Lease Liability (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Leases | ||
2021 | $ 40.2 | |
2022 | 35.3 | |
2023 | 26.8 | |
2024 | 20.3 | |
2025 | 16.2 | |
Thereafter | 75.4 | |
Total lease payments | 214.2 | |
Less: Interest | (35.9) | |
Present value of lease liabilities | 178.3 | |
Finance Leases | ||
2021 | 1.7 | |
2022 | 1.2 | |
2023 | 0.7 | |
2024 | 0.5 | |
2025 | 0.2 | |
Thereafter | 0 | |
Total lease payments | 4.3 | |
Less: Interest | (0.2) | |
Finance leases | 4.1 | $ 3.9 |
Lessee, operating lease, option to extend, amount | $ 3.3 |
Leases - Other Information Rela
Leases - Other Information Relating to Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 40.6 | $ 42 | |
Operating cash flows from finance leases | 0.1 | 0.1 | |
Financing cash flows from finance leases | $ 1.8 | $ 1.9 | $ 1.2 |
Receivables Sales Program - Add
Receivables Sales Program - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2020USD ($)agreement | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Receivables [Abstract] | |||
Number of agreements | agreement | 2 | ||
Termination period | 60 days | ||
Retained interest | $ 0 | ||
Proceeds from receivables sales, maximum | 300,000,000 | ||
Loss on sale of receivables | $ 2,400,000 | $ 4,300,000 | $ 3,800,000 |
Receivables Sales Program - Acc
Receivables Sales Program - Accounts Receivable Sold the Receivable Sales Program (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Outstanding accounts receivable sold | $ 284.3 | $ 243 |
Collections not remitted to financial institutions | $ 202.8 | $ 158.3 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 231 | $ 205.5 |
Finished goods | 367.6 | 338.5 |
Total inventories | $ 598.6 | $ 544 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Additional Information (Details) $ in Millions | Dec. 11, 2020USD ($) | Sep. 01, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)facility | Jun. 30, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Apr. 17, 2020USD ($) | Aug. 01, 2019USD ($)plant |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Useful life | 10 years | |||||||||
Goodwill | $ 2,178.7 | $ 2,107.3 | $ 2,178.7 | $ 2,107.3 | $ 2,107.9 | |||||
Estimated capital loss | 586.2 | |||||||||
Deferred tax asset on capital loss | 149.1 | 149.1 | ||||||||
Assets of discontinued operations | 70.7 | 131.1 | 70.7 | 131.1 | ||||||
Gain upon divestiture on operating expense, net | (71.1) | (99.6) | (135.7) | |||||||
Discontinued Operations | Snacks | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Long-lived assets Impairment losses | $ 66.5 | |||||||||
Intangible asset impairment losses | 3.3 | |||||||||
Discontinued Operations | Snacks | Property, Plant and Equipment | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Long-lived assets Impairment losses | $ 63.2 | |||||||||
Discontinued Operations, Disposed of by Sale | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Assets of discontinued operations | 70.7 | 131.1 | 70.7 | 131.1 | ||||||
Discontinued Operations, Disposed of by Sale | Snacks | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Cash consideration | $ 24 | $ 90 | ||||||||
Loss on sale of business | 98.4 | |||||||||
Number of operating plants | plant | 3 | |||||||||
Discontinued Operations, Disposed of by Sale | RTE Cereal | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Long-lived assets Impairment losses | 51.2 | 74.5 | ||||||||
Held-for-sale | In-Store Bakery Facilities | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Long-lived assets Impairment losses | $ 41.1 | |||||||||
Number of facilities to be disposed of | facility | 2 | |||||||||
Number of facilities | facility | 2 | |||||||||
Assets of discontinued operations | $ 24.3 | 24.3 | ||||||||
Held-for-sale | In-Store Bakery Facilities | Minneapolis, MN | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Assets of discontinued operations | 2.7 | 2.7 | ||||||||
Meal Preparation Segment | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Goodwill | 1,323.2 | $ 1,253 | 1,323.2 | $ 1,253 | 1,250.1 | |||||
Snacking & Beverages | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Gain upon divestiture on operating expense, net | $ 14.3 | |||||||||
Snacking & Beverages | Discontinued Operations, Disposed of by Sale | In-Store Bakery Facilities | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Loss on disposal | $ 0.3 | |||||||||
Formulas/recipes | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Useful life | 6 years | |||||||||
Riviana Foods | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Purchase price | $ 239.2 | |||||||||
Business combination, Put or call option to sell equipment | 5 | |||||||||
Net sales | 11.6 | |||||||||
Loss before income taxes | $ 0.9 | |||||||||
Acquisition related costs | 6.3 | |||||||||
Increase in cost of inventories | $ 3.1 | |||||||||
Goodwill | 57.8 | |||||||||
Riviana Foods | Cost of sales | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Increase in cost of inventories | $ 2.1 | |||||||||
Riviana Foods | Customer-related | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Intangible asset | $ 68 | |||||||||
Useful life | 20 years | |||||||||
Riviana Foods | Trade names | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Intangible asset | $ 43 | |||||||||
Useful life | 20 years | |||||||||
Riviana Foods | Formulas/recipes | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Intangible asset | $ 2.3 | |||||||||
Useful life | 5 years | |||||||||
Refrigerated Dough Acquisition | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Purchase price | $ 17.5 | |||||||||
Refrigerated Dough Acquisition | Meal Preparation Segment | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Goodwill | $ 10.7 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Purchase Price Allocation to Net Tangible and Intangible Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 11, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 2,178.7 | $ 2,107.3 | $ 2,107.9 | |
Riviana Foods | ||||
Business Acquisition [Line Items] | ||||
Inventories | $ 20 | |||
Property, plant, and equipment, net | 48.2 | |||
Goodwill | 57.8 | |||
Operating lease right-of-use assets | 0.1 | |||
Assets acquired | 239.4 | |||
Assumed liabilities | (0.2) | |||
Total purchase price | 239.2 | |||
Riviana Foods | Customer-related | ||||
Business Acquisition [Line Items] | ||||
Intangible asset | 68 | |||
Riviana Foods | Trade names | ||||
Business Acquisition [Line Items] | ||||
Intangible asset | 43 | |||
Riviana Foods | Formulas/recipes | ||||
Business Acquisition [Line Items] | ||||
Intangible asset | $ 2.3 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Pro Forma Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Business Combinations [Abstract] | ||
Pro forma net sales from continuing operations | $ 4,550.4 | $ 4,454.1 |
Pro forma net income (loss) from continuing operations | $ 83.4 | $ (106.3) |
Acquisitions and Divestitures_4
Acquisitions and Divestitures - Results of Discontinued Operations on Income Statement (Details) - Discontinued Operations, Disposed of by Sale - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net sales | $ 220.8 | $ 638 | $ 1,226.6 |
Cost of sales | 193.4 | 619.5 | 1,167.4 |
Selling, general, administrative and other operating expenses | 17.3 | 55.2 | 78.7 |
Asset impairment | 51.2 | 141 | 0 |
Loss on sale of business | 0 | 98.4 | 0 |
Other operating expense, net | 0.8 | 0 | 0 |
Operating loss from discontinued operations | (41.9) | (276.1) | (19.5) |
Interest and other expense | 3.4 | 7.7 | 11.7 |
Income tax benefit | (9.9) | (33.1) | (13) |
Net loss from discontinued operations | $ (35.4) | $ (250.7) | $ (18.2) |
Acquisitions and Divestitures_5
Acquisitions and Divestitures - Results of Discontinued Operations on Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total assets of discontinued operations | $ 70.7 | $ 131.1 |
Total liabilities of discontinued operations | 6.7 | 16.5 |
Held-for-sale | In-Store Bakery Facilities | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Inventories | 9.4 | |
Property, plant, and equipment, net | 40.9 | |
Goodwill | 5.7 | |
Intangible assets | 9.4 | |
Valuation allowance | (41.1) | |
Total assets of discontinued operations | 24.3 | |
Discontinued Operations, Disposed of by Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Inventories | 33.3 | 41.6 |
Property, plant, and equipment, net | 65.9 | 64.4 |
Operating lease right-of-use assets | 5.1 | 7.5 |
Goodwill | 53.5 | 53.5 |
Intangible assets | 38.6 | 38.6 |
Valuation allowance | (125.7) | (74.5) |
Total assets of discontinued operations | 70.7 | 131.1 |
Accrued expenses and other liabilities | 1.1 | 8.3 |
Operating lease liabilities | 5.6 | 8.2 |
Total liabilities of discontinued operations | $ 6.7 | $ 16.5 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment - (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,911.9 | $ 1,758.8 |
Less accumulated depreciation | (841.9) | (713.6) |
Property, plant, and equipment, net | 1,070 | 1,045.2 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 57.4 | 53.7 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 442.5 | 401.2 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,355 | 1,230.1 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 57 | $ 73.8 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Finite lived intangible asset impairment | $ 0 | $ 45,200,000 | |
Depreciation expense | $ 132,500,000 | 136,500,000 | $ 145,000,000 |
Cookies and Dry Dinner Asset Group | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment impairment losses | 42,800,000 | ||
Finite lived intangible asset impairment | $ 45,200,000 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Details) | Jan. 01, 2020segment | Mar. 31, 2020segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)segment |
Goodwill And Intangible Assets [Line Items] | ||||
Number of operating segments | segment | 2 | 2 | 3 | |
Impairment losses | $ 0 | $ 0 | ||
Goodwill deductible for tax purposes | 437,200,000 | |||
Impairment of intangible assets, indefinite-lived | 0 | 0 | ||
Finite lived intangible asset impairment | 0 | $ 45,200,000 | ||
Trademarks | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Indefinite-lived, fair value | $ 16,400,000 | |||
Percentage of fair value | 12.00% |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | |||
Balance at January 1, 2019, before accumulated impairment losses | $ 2,152.4 | ||
Accumulated impairment losses | (44.5) | ||
Beginning Balance | $ 2,107.3 | $ 2,107.9 | |
Reclassification to assets held for sale | (5.7) | ||
Acquisitions | 68.5 | ||
Foreign currency exchange adjustments | 2.9 | 5.1 | |
Ending Balance | 2,178.7 | 2,107.3 | |
Meal Preparation | |||
Goodwill [Roll Forward] | |||
Balance at January 1, 2019, before accumulated impairment losses | 1,261.6 | ||
Accumulated impairment losses | (11.5) | ||
Beginning Balance | 1,253 | 1,250.1 | |
Reclassification to assets held for sale | 0 | ||
Acquisitions | 68.5 | ||
Foreign currency exchange adjustments | 1.7 | 2.9 | |
Ending Balance | 1,323.2 | 1,253 | |
Snacking & Beverages | |||
Goodwill [Roll Forward] | |||
Balance at January 1, 2019, before accumulated impairment losses | 890.8 | ||
Accumulated impairment losses | $ (33) | ||
Beginning Balance | 854.3 | 857.8 | |
Reclassification to assets held for sale | (5.7) | ||
Acquisitions | 0 | ||
Foreign currency exchange adjustments | 1.2 | 2.2 | |
Ending Balance | $ 855.5 | $ 854.3 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Gross Carrying Amounts and Accumulated Amortization of Intangible Assets, with Finite Lives (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life Remaining (yrs.) | 10 years | |
Gross Carrying Amount | $ 1,165.3 | $ 1,032.7 |
Accumulated Amortization | (572.7) | (500) |
Net Carrying Amount | 592.6 | 532.7 |
Gross Carrying Amount | 1,187.7 | 1,054.7 |
Accumulated Amortization | (572.7) | (500) |
Net Carrying Amount | 615 | 554.7 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets with indefinite lives: | $ 22.4 | 22 |
Customer-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life Remaining (yrs.) | 9 years 10 months 24 days | |
Gross Carrying Amount | $ 848.5 | 778.1 |
Accumulated Amortization | (406.4) | (355.2) |
Net Carrying Amount | 442.1 | 422.9 |
Accumulated Amortization | $ (406.4) | (355.2) |
Contractual agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life Remaining (yrs.) | 0 years | |
Gross Carrying Amount | $ 0.5 | 0.5 |
Accumulated Amortization | (0.5) | (0.5) |
Net Carrying Amount | 0 | 0 |
Accumulated Amortization | $ (0.5) | (0.5) |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life Remaining (yrs.) | 15 years | |
Gross Carrying Amount | $ 96.2 | 53 |
Accumulated Amortization | (31.7) | (27.1) |
Net Carrying Amount | 64.5 | 25.9 |
Accumulated Amortization | $ (31.7) | (27.1) |
Formulas/recipes | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life Remaining (yrs.) | 6 years | |
Gross Carrying Amount | $ 25.3 | 22.1 |
Accumulated Amortization | (22.1) | (19.2) |
Net Carrying Amount | 3.2 | 2.9 |
Accumulated Amortization | $ (22.1) | (19.2) |
Computer software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life Remaining (yrs.) | 7 years | |
Gross Carrying Amount | $ 194.8 | 179 |
Accumulated Amortization | (112) | (98) |
Net Carrying Amount | 82.8 | 81 |
Accumulated Amortization | $ (112) | $ (98) |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Estimated Amortization Expense on Intangible Assets (Details) $ in Millions | Dec. 31, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2021 | $ 71.1 |
2022 | 68.7 |
2023 | 65.8 |
2024 | 65.3 |
2025 | $ 64.5 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Payroll and benefits | $ 90.8 | $ 50.4 |
Trade promotion liabilities | 39.6 | 37.9 |
Operating lease liabilities | 33.8 | 32 |
Interest | 20.4 | 20 |
Taxes | 6.8 | 14.5 |
Health insurance, workers' compensation, and other insurance costs | 20.2 | 23.9 |
Derivative contracts | 98.1 | 57.2 |
Other accrued liabilities | 30.9 | 37.3 |
Total | $ 340.6 | $ 273.2 |
Income Taxes - Components of Lo
Income Taxes - Components of Loss Before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||||||||
Domestic | $ 9.8 | $ (154.4) | $ (72.5) | ||||||||
Foreign | 7.3 | (1.4) | 14.9 | ||||||||
Income (loss) before income taxes | $ 56.5 | $ 22.4 | $ 11.2 | $ (73) | $ 19.9 | $ (97.4) | $ (56.9) | $ (21.4) | $ 17.1 | $ (155.8) | $ (57.6) |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||
Federal | $ (95.7) | $ 13.2 | $ (9) |
State | 1.6 | 2.9 | 5.5 |
Foreign | (1.4) | 1.7 | 8.9 |
Total current | (95.5) | 17.8 | 5.4 |
Deferred: | |||
Federal | 69.8 | (48.4) | (6) |
State | (2.9) | (11.8) | (6.6) |
Foreign | (3.5) | (3.1) | (4.2) |
Total deferred | 63.4 | (63.3) | (16.8) |
Total income tax benefit | $ (32.1) | $ (45.5) | $ (11.4) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expense Computed at U.S. Federal Statutory Tax Rate to Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Tax at statutory rate | $ 3.6 | $ (32.7) | $ (12.1) |
State income taxes | (1) | (7.1) | (0.3) |
Tax benefit of cross-border intercompany financing structure | (1.4) | (2.1) | (2.3) |
Repatriation of intangibles | 0 | (4.6) | 0 |
CARES Act | (30.3) | 0 | 0 |
Disallowed officers' compensation | 2.6 | 1.6 | 6.3 |
Excess tax benefits related to stock-based compensation | 1.7 | (0.1) | 0.8 |
Transition tax | 0 | (1.9) | (0.4) |
Other tax credits | (0.9) | (0.9) | (1.3) |
Valuation allowance | (6.2) | 3.4 | (1.1) |
Uncertain tax positions | (2.5) | (2.5) | (2.9) |
Return-to-provision | 0.2 | 0.1 | (0.6) |
Indemnification | 1.1 | 0.3 | (0.4) |
Gain on divestiture | 0 | 0 | 2.2 |
Remeasurement of deferred tax assets/liabilities | 0 | 0 | (1) |
Other, net | 1 | 1 | 1.7 |
Total income tax benefit | $ (32.1) | $ (45.5) | $ (11.4) |
Income Taxes - Tax Effects of T
Income Taxes - Tax Effects of Temporary Differences Giving Rise to Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Pension and postretirement benefits | $ 13.6 | $ 16.7 |
Accrued liabilities | 23.5 | 21.4 |
Stock compensation | 11.8 | 12.6 |
Lease liabilities | 46.2 | 51.4 |
Interest limitation carryover | 3.9 | 30.3 |
Loss and credit carryovers | 213.6 | 201.7 |
Unrealized foreign exchange loss | 21.3 | 15.7 |
Other | 12.6 | 11.9 |
Total deferred tax assets | 346.5 | 361.7 |
Valuation allowance | (161) | (167.9) |
Total deferred tax assets, net of valuation allowance | 185.5 | 193.8 |
Deferred tax liabilities: | ||
Fixed assets and intangible assets | (291.3) | (238.2) |
Lease assets | (45.1) | (50.5) |
Inventory reserves | 0 | (2.5) |
Total deferred tax liabilities | (336.4) | (291.2) |
Net deferred income tax liability | $ (150.9) | $ (97.4) |
Income Taxes - Income Taxes - D
Income Taxes - Income Taxes - Details of Tax Attributed Related to Net Operating Losses, Credits And Capital Losses (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Gross Attribute Amount | ||
U.S. net operating losses | $ 2.4 | |
Foreign net operating losses | 32.1 | |
State net operating losses | 257 | |
Federal credits | 0 | |
State credits | 0 | |
Federal capital loss | 586.2 | |
State capital loss | 586.2 | |
Net Attribute Amount | ||
U.S. net operating losses | 0.5 | |
Foreign net operating losses | 8.3 | |
State net operating losses | 11.3 | |
Federal credits | 19.4 | |
State credits | 16.7 | |
Federal capital loss | 123.1 | |
State capital loss | 26 | |
Other | 8.3 | |
Total | $ 213.6 | $ 201.7 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Contingency [Line Items] | |||
Deferred tax asset on capital loss | $ 149.1 | ||
Unrecognized tax benefits that would impact the effective tax rate, if reversed | $ 5.5 | 3.4 | |
Unrecognized tax benefits assumed in prior acquisitions | 4.8 | 9.9 | |
Decrease in total amount of unrecognized tax benefits within the next 12 months | 5.1 | ||
Decrease in unrecognized tax benefits is reasonably possible | 2 | ||
Unrecognized tax benefits, recognized interest and penalties in income tax expense (benefit) | (1.4) | (0.2) | $ (0.2) |
Unrecognized tax benefits, accrued payment of interest and penalties | 2.4 | 3.9 | |
Unrecognized tax benefits, accrued payment of interest and penalties, subject to in | 1.7 | 3.7 | |
CARES Act, Income tax benefit | 29.3 | ||
Tax benefit related to intercompany financing structure | $ 1.4 | $ 2.1 | $ 2.3 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits beginning balance | $ 12.3 | $ 17.3 | $ 26.4 |
Additions (reductions) based on tax positions of prior years | 2.4 | ||
Additions (reductions) based on tax positions of prior years | (1.1) | (0.6) | |
Reductions resulting from dispositions | 0 | (1.1) | 0 |
Reductions due to statute lapses | (3.4) | (2.8) | (8.3) |
Reductions related to settlements with taxing authorities | (0.7) | (0.1) | 0 |
Foreign currency translation | 0.1 | 0.1 | |
Foreign currency translation | (0.2) | ||
Unrecognized tax benefits ending balance | $ 10.7 | $ 12.3 | $ 17.3 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Aug. 26, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||
Finance leases | $ 4.1 | $ 3.9 | |
Total outstanding debt | 2,233 | 2,122.7 | |
Less current portion | (15.7) | (15.3) | |
Total long-term debt | 2,199 | 2,091.7 | |
2022 Notes | |||
Debt Instrument [Line Items] | |||
Senior notes | 0 | $ 375.9 | |
2024 Notes | |||
Debt Instrument [Line Items] | |||
Senior notes | 602.9 | 602.9 | |
2028 Notes | |||
Debt Instrument [Line Items] | |||
Senior notes | 500 | 0 | |
Term Loan A | |||
Debt Instrument [Line Items] | |||
Term Loan | 453.4 | 458.4 | |
Term Loan A-1 | |||
Debt Instrument [Line Items] | |||
Term Loan | $ 672.6 | $ 681.6 |
Long-Term Debt - Scheduled Matu
Long-Term Debt - Scheduled Maturities of Outstanding Debt, Excluding Deferred Financing Costs (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
2021 | $ 15.7 | |
2022 | 15.2 | |
2023 | 660.2 | |
2024 | 608.4 | |
2025 | 433.5 | |
Thereafter | 500 | |
Total outstanding debt | $ 2,233 | $ 2,122.7 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) | Aug. 26, 2019 | Jun. 11, 2018USD ($) | Dec. 31, 2019 | Dec. 31, 2020USD ($) | Dec. 01, 2017USD ($)term_loan | Nov. 30, 2017USD ($)term_loan |
Debt Instrument [Line Items] | ||||||
Maximum leverage ratio | 4.5 | 4 | 4 | |||
Average interest rate on debt outstanding | 2.27% | |||||
Interest Rate Swap | ||||||
Debt Instrument [Line Items] | ||||||
Average interest rate on debt outstanding | 3.86% | |||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Number of term loans | term_loan | 2 | |||||
Revolving credit facility - maximum borrowing capacity | $ | $ 750,000,000 | $ 750,000,000 | $ 900,000,000 | |||
Revolving Credit Facility | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Number of term loans | term_loan | 3 | |||||
Revolving Credit Facility | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Number of term loans | term_loan | 2 | |||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Fees related to amended and restated credit agreement | $ | $ 600,000 | |||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Fees related to amended and restated credit agreement | $ | $ 1,800,000 |
Long-Term Debt - Revolving Cred
Long-Term Debt - Revolving Credit Facility - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 01, 2017 | Nov. 30, 2017 | |
Debt Instrument [Line Items] | |||
Debt instrument covenant consolidated net leverage ratio (no greater than) | 4.50 | ||
Direct and Indirect Guarantor Subsidiaries | |||
Debt Instrument [Line Items] | |||
Ownership percentage of direct and indirect Guarantor subsidiaries | 100.00% | ||
Minimum | |||
Debt Instrument [Line Items] | |||
Debt instrument, unused fee rate | 0.20% | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Debt instrument, unused fee rate | 0.35% | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Revolving credit facility available | $ 727,100,000 | ||
Revolving credit facility - maximum borrowing capacity | 750,000,000 | $ 750,000,000 | $ 900,000,000 |
Letters of credit facility issued but undrawn | 22,900,000 | ||
Minimum payment default amount that triggers a Cross default provision | $ 75,000,000 | ||
Revolving Credit Facility | Minimum | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.20% | ||
Revolving Credit Facility | Minimum | Base Rate Margin | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.20% | ||
Revolving Credit Facility | Maximum | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.70% | ||
Revolving Credit Facility | Maximum | Base Rate Margin | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.70% |
Long-Term Debt - Term Loan A -
Long-Term Debt - Term Loan A - Additional Information (Details) - Term Loan A | Dec. 01, 2017USD ($) |
Debt Instrument [Line Items] | |
Term loan - issuance amount | $ 500,000,000 |
Minimum | London Interbank Offered Rate (LIBOR) | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 1.675% |
Minimum | Base Rate Margin | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 0.675% |
Maximum | London Interbank Offered Rate (LIBOR) | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 2.175% |
Maximum | Base Rate Margin | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 1.175% |
Long-Term Debt - Term Loan A-1
Long-Term Debt - Term Loan A-1 - Additional Information (Details) | Dec. 01, 2017USD ($) |
Term Loan A-1 | |
Debt Instrument [Line Items] | |
Term loan - issuance amount | $ 900,000,000 |
Long-Term Debt - 2022 Notes - A
Long-Term Debt - 2022 Notes - Additional Information (Details) - USD ($) $ in Millions | Aug. 26, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||||
Loss on extinguishment of debt | $ (1.2) | $ 0 | $ (6.6) | |
2022 Notes | ||||
Debt Instrument [Line Items] | ||||
Redemption prices, plus accrued and unpaid interest, Percentage | 100.00% | |||
Senior notes | $ 375.9 | $ 0 |
Long-Term Debt - 2024 Notes - A
Long-Term Debt - 2024 Notes - Additional Information (Details) - USD ($) $ in Millions | Aug. 26, 2020 | Jan. 29, 2016 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||||
Repurchases of 2022 and 2024 Notes | $ 375.9 | $ 0 | $ 196.2 | ||
Write off of debt issuance costs | 2.4 | ||||
Total repurchase amount | 4.2 | ||||
Loss on extinguishment of debt | $ 1.2 | $ 0 | 6.6 | ||
2024 Notes | |||||
Debt Instrument [Line Items] | |||||
Net proceeds from the issuance of the 2024 Notes | $ 760.7 | ||||
Effective interest rate on senior notes | 6.23% | ||||
Repurchases of 2022 and 2024 Notes | 172.1 | ||||
Redemption prices, plus accrued and unpaid interest, Percentage | 101.00% | ||||
2022 Notes | |||||
Debt Instrument [Line Items] | |||||
Repurchases of 2022 and 2024 Notes | $ 24.1 | ||||
Redemption prices, plus accrued and unpaid interest, Percentage | 100.00% | ||||
2022 Notes and 2024 Notes | |||||
Debt Instrument [Line Items] | |||||
Indenture accreted amount due and payable percentage | 25.00% |
Long-Term Debt - 2028 Notes - A
Long-Term Debt - 2028 Notes - Additional Information (Details) - 2028 Notes - USD ($) | Sep. 09, 2020 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Term loan - issuance amount | $ 500,000,000 | |
Stated debt interest rate | 4.00% | |
Prior to September 1, 2023 | ||
Debt Instrument [Line Items] | ||
Redemption prices, plus accrued and unpaid interest, Percentage | 100.00% | |
Redemption price, principal amount redeemed, percentage | 40.00% | |
Post to September 1, 2023 | ||
Debt Instrument [Line Items] | ||
Redemption prices, plus accrued and unpaid interest, Percentage | 104.00% | |
Change of control | ||
Debt Instrument [Line Items] | ||
Redemption prices, plus accrued and unpaid interest, Percentage | 101.00% |
Long-Term Debt - Interest Rate
Long-Term Debt - Interest Rate Swap Agreements - Additional Information (Details) | Dec. 31, 2020USD ($) |
Interest Rate Swap | |
Debt Instrument [Line Items] | |
Notional amount | $ 875,000,000 |
Long-Term Debt - Fair Value - A
Long-Term Debt - Fair Value - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
Long-term debt, fair value | $ 2,250.4 | $ 2,146.1 |
Long-term debt, carrying value | $ 2,228.9 | $ 2,118.8 |
Long-Term Debt - Finance Lease
Long-Term Debt - Finance Lease Obligations and Other - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Finance leases | $ 4.1 | $ 3.9 |
Machinery and Equipment | ||
Debt Instrument [Line Items] | ||
Finance leases | $ 4.1 |
Long-Term Debt - Deferred Finan
Long-Term Debt - Deferred Financing Costs - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Long-term Debt | ||
Debt Instrument [Line Items] | ||
Deferred financing costs | $ 18.3 | $ 15.7 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Nov. 02, 2017 | |
Stockholders Equity Note [Line Items] | |||
Common stock, shares authorized (in shares) | 90,000,000 | 90,000,000 | |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 | |
Common stock, dividend declared (in usd per share) | $ 0 | ||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | |
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 | |
Preferred stock, shares issued (in shares) | 0 | 0 | |
Common Stock | |||
Stockholders Equity Note [Line Items] | |||
Stock repurchase program, expected annual cap | $ 150,000,000 | ||
Common Stock | Maximum | |||
Stockholders Equity Note [Line Items] | |||
Stock repurchase program, authorized amount | $ 400,000,000 |
Stockholders' Equity - Repurcha
Stockholders' Equity - Repurchase of Common Stock (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | |||
Shares repurchased (in shares) | 0.6 | 0 | 1.2 |
Weighted average price per share (in usd per share) | $ 38.64 | $ 0 | $ 45.78 |
Total cost | $ 25 | $ 0 | $ 54.6 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Weighted average common shares outstanding (in shares) | 56.5 | 56.2 | 56 |
Assumed exercise/vesting of equity awards (in shares) | 0.2 | 0 | 0 |
Weighted average diluted common shares outstanding (in shares) | 56.7 | 56.2 | 56 |
Equity awards, excluded from computation of diluted earnings (in shares) | 1.4 | 1.6 | 1.7 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018USD ($) | Dec. 31, 2020USD ($)performance_period$ / sharesshares | Dec. 31, 2019$ / shares | Dec. 31, 2018USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost | $ 10,000,000 | |||
Number of performance periods | performance_period | 3 | |||
Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost | $ 1,200,000 | |||
Compensation costs, unrecognized | $ 0 | |||
Weighted average grant date fair (in usd per share) | $ / shares | $ 0 | $ 0 | $ 0 | |
Share based compensation arrangement, award vesting period | 3 years | |||
Share based compensation arrangement, award expiration period | 10 years | |||
Stock Option | Vesting in year 1 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percent per year | 33.33% | |||
Stock Option | Vesting in year 2 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percent per year | 33.33% | |||
Stock Option | Vesting in year 3 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percent per year | 33.34% | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost | 3,800,000 | |||
Restricted Stock | Vesting in year 1 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percent per year | 33.33% | |||
Restricted Stock | Vesting in year 2 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percent per year | 33.33% | |||
Restricted Stock | Vesting in year 3 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percent per year | 33.34% | |||
Performance Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost | $ 5,000,000 | |||
Compensation costs, unrecognized | $ 8,200,000 | |||
Compensation costs, recognition weighted average remaining period (in years) | 1 year | |||
Performance Units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Predefined percentage for calculation of performance unit awards | 0.00% | |||
Performance Units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Predefined percentage for calculation of performance unit awards | 200.00% | |||
Employee Restricted Stock Units and Director Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation costs, unrecognized | $ 22,400,000 | |||
Compensation costs, recognition weighted average remaining period (in years) | 1 year 7 months 6 days | |||
TreeHouse Foods, Inc. Equity and Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares authorized to be awarded (in shares) | shares | 17,500,000 | |||
Shares available (in shares) | shares | 4,100,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Total Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Compensation expense related to stock-based payments | $ 26.1 | $ 22.6 | $ 30.7 |
Related income tax benefit | $ 6.7 | $ 5.8 | $ 7.7 |
Stock-Based Compensation- Summa
Stock-Based Compensation- Summary of Stock Option Activity (Details) - Stock Option - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Options | ||
Beginning balance (in shares) | 1,528 | |
Forfeited (in shares) | (8) | |
Exercised (in shares) | (80) | |
Expired (in shares) | (128) | |
Ending balance (in shares) | 1,312 | 1,528 |
Vested/expected to vest, at December 31, 2020 | 1,312 | |
Exercisable, at December 31, 2020 | 1,312 | |
Weighted Average Exercise Price | ||
Beginning balance (in usd per share) | $ 74.58 | |
Forfeited (in usd per share) | 82.77 | |
Exercised (in usd per share) | 40.01 | |
Expired (in usd per share) | 66.10 | |
Ending balance (in usd per share) | 77.62 | $ 74.58 |
Vested/expected to vest, at December 31, 2020 | 77.62 | |
Exercisable, at December 31, 2020 | $ 77.62 | |
Weighted Average Remaining Contractual Term (yrs.) | ||
Outstanding | 3 years 1 month 6 days | 3 years 8 months 12 days |
Vested/expected to vest, at December 31, 2020 | 3 years 1 month 6 days | |
Exercisable, at December 31, 2020 | 3 years 1 month 6 days | |
Aggregate Intrinsic Value | ||
Beginning balance | $ 0.8 | |
Ending balance | 0 | $ 0.8 |
Vested/expected to vest | 0 | |
Exercisable | $ 0 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Employee and Director Stock Option Highlights (Details) - Employee and Director Stock Option - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of stock options exercised | $ 0.7 | $ 0.1 | $ 3.8 |
Tax benefit recognized from stock option exercises | $ 0.2 | $ 0 | $ 0.7 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Restricted Stock and Restricted Stock Unit Activity (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Employee Restricted Stock Units | |
Employee Restricted Stock Units | |
Beginning Balance (in shares) | shares | 615 |
Granted (in shares) | shares | 429 |
Vested (in shares) | shares | (242) |
Forfeited (in shares) | shares | (95) |
Ending Balance (in shares) | shares | 707 |
Weighted Average Grant Date Fair Value | |
Outstanding, Beginning Balance (in usd per share) | $ / shares | $ 54.58 |
Granted (in usd per share) | $ / shares | 44.09 |
Vested (in usd per share) | $ / shares | 55.45 |
Forfeited (in usd per share) | $ / shares | 54.52 |
Outstanding, Ending Balance (in usd per share) | $ / shares | $ 47.92 |
Director Restricted Stock Units | |
Employee Restricted Stock Units | |
Beginning Balance (in shares) | shares | 116 |
Granted (in shares) | shares | 33 |
Vested (in shares) | shares | (24) |
Forfeited (in shares) | shares | 0 |
Ending Balance (in shares) | shares | 125 |
Vested and deferred (in shares) | shares | 91 |
Weighted Average Grant Date Fair Value | |
Outstanding, Beginning Balance (in usd per share) | $ / shares | $ 58.30 |
Granted (in usd per share) | $ / shares | 51.40 |
Vested (in usd per share) | $ / shares | 66.79 |
Forfeited (in usd per share) | $ / shares | 0 |
Outstanding, Ending Balance (in usd per share) | $ / shares | 54.67 |
Vested and deferred (in usd per share) | $ / shares | $ 55.88 |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Employee and Director Restricted Stock and Restricted Stock Highlights (Details) - Employee Restricted Stock Units and Director Restricted Stock Units - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of vested restricted stock units | $ 11.1 | $ 19.5 | $ 16.6 |
Tax benefit recognized from vested restricted stock units | $ 2 | $ 3.7 | $ 2.5 |
Stock-Based Compensation - Su_5
Stock-Based Compensation - Summary of Performance Unit Activity (Details) - Performance Units shares in Thousands | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Performance Units | |
Beginning Balance (in shares) | shares | 482 |
Granted (in shares) | shares | 221 |
Vested (in shares) | shares | (75) |
Forfeited (in shares) | shares | (87) |
Ending Balance (in shares) | shares | 541 |
Weighted Average Grant Date Fair Value | |
Outstanding, Beginning Balance (in usd per share) | $ / shares | $ 61.28 |
Granted (in usd per share) | $ / shares | 44.19 |
Vested (in usd per share) | $ / shares | 60.12 |
Forfeited (in usd per share) | $ / shares | 72.70 |
Outstanding, Ending Balance (in usd per share) | $ / shares | $ 52.38 |
Stock-Based Compensation - Su_6
Stock-Based Compensation - Summary of Performance Unit Highlights (Details) - Performance Units - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of vested performance units | $ 3.3 | $ 0.9 | $ 7.6 |
Tax benefit recognized from performance units vested | $ 0.7 | $ 0.2 | $ 0.1 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss- Components of Accumulated Other Comprehensive Loss Net of Tax Except for Foreign Currency Translation Adjustment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 1,830.9 | $ 2,160 | $ 2,284.4 |
Other comprehensive income (loss)before reclassifications | 19.5 | 12.6 | (35) |
Reclassifications from accumulated other comprehensive loss | 0.5 | 0.5 | 0.5 |
Reclassifications from accumulated other comprehensive loss - Adoption of ASU 2018-02 | 0 | 0 | (1.1) |
Other comprehensive income (loss) | 20 | 13.1 | (35.6) |
Ending balance | 1,865 | 1,830.9 | 2,160 |
Foreign Currency Translation | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (79.4) | (91.7) | (57.2) |
Other comprehensive income (loss)before reclassifications | 12.1 | 12.3 | (34.5) |
Reclassifications from accumulated other comprehensive loss | 0 | 0 | 0 |
Reclassifications from accumulated other comprehensive loss - Adoption of ASU 2018-02 | 0 | ||
Other comprehensive income (loss) | 12.1 | 12.3 | (34.5) |
Ending balance | (67.3) | (79.4) | (91.7) |
Unrecognized Pension and Postretirement Benefits | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (4.6) | (5.4) | (4.3) |
Other comprehensive income (loss)before reclassifications | 7.4 | 0.3 | (0.5) |
Reclassifications from accumulated other comprehensive loss | 0.5 | 0.5 | 0.5 |
Reclassifications from accumulated other comprehensive loss - Adoption of ASU 2018-02 | (1.1) | ||
Other comprehensive income (loss) | 7.9 | 0.8 | (1.1) |
Ending balance | 3.3 | (4.6) | (5.4) |
Accumulated Other Comprehensive Loss | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (84) | (97.1) | (61.5) |
Ending balance | $ (64) | $ (84) | $ (97.1) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss Net of Tax Except for Foreign Currency Translation Adjustment (Footnote) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Unrecognized Pension and Postretirement Benefits | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Income taxes | $ 2.6 | $ 0 | $ 0 |
Employee Pension And Postreti_3
Employee Pension And Postretirement Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution made by the company | $ 20.4 | $ 19.4 | $ 19.3 |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution made by the company | 1.5 | 3.7 | |
Pension plan contribution for next year | $ 0.7 | ||
Pension Benefits | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of plan asset allocation | 42.00% | ||
Pension Benefits | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of plan asset allocation | 52.00% | ||
Pension Benefits | Hedge Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of plan asset allocation | 5.00% | ||
Pension Benefits | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of plan asset allocation | 1.00% | ||
Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution made by the company | $ 1.5 | 1.6 | |
Pension plan contribution for next year | 1.5 | ||
Multiemployer plans contribution | $ 0.3 | $ 0.2 | $ 1.5 |
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of participant's annual compensation for employer matching and profit sharing contributions | 1.00% | ||
Percentage of total contributions (more than) | 5.00% | ||
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of participant's annual compensation for employer matching and profit sharing contributions | 80.00% | ||
Maximum | Pension Benefits | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Targeted equities percentage under investment policy | 65.00% |
Employee Pension and Postreti_4
Employee Pension and Postretirement Benefit Plans - Fair Value of Pension Plan Assets, by Asset Category (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 325.9 | $ 294 |
Fair Value, Inputs, Level 1 | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1.6 | 1.8 |
Fair Value, Inputs, Level 1 | Equity funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 137.3 | 118.4 |
Fair Value, Inputs, Level 1 | Fixed income funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 170.2 | 157.3 |
Fair Value, Inputs, Level 1 | Alternative funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 16.8 | $ 16.5 |
Employee Pension and Postreti_5
Employee Pension and Postretirement Benefit Plans - Summarized Information about Pension and Postretirement Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in plan assets: | |||
Fair value of plan assets, at beginning of year | $ 294 | ||
Company contributions | 20.4 | $ 19.4 | $ 19.3 |
Fair value of plan assets, at end of year | $ 325.9 | $ 294 | |
Amounts recognized in Accumulated other comprehensive income (loss): | |||
Discount rate | 2.50% | 3.25% | |
Pension Benefits | |||
Change in benefit obligations: | |||
Benefit obligation, at beginning of year | $ 336 | $ 300 | |
Service cost | 1.8 | 1.5 | 1.9 |
Interest cost | 10.5 | 12.2 | 11.9 |
Curtailment | 0 | (0.5) | |
Actuarial losses (gains) | 24.9 | 40.3 | |
Benefits paid | (18.1) | (17.5) | |
Benefit obligation, at end of year | 355.1 | 336 | 300 |
Change in plan assets: | |||
Fair value of plan assets, at beginning of year | 294 | 252 | |
Actual gain on plan assets | 48.5 | 55.8 | |
Company contributions | 1.5 | 3.7 | |
Benefits paid | (18.1) | (17.5) | |
Fair value of plan assets, at end of year | 325.9 | 294 | 252 |
Funded status of the plan | (29.2) | (42) | |
Amounts recognized in the Consolidated Balance Sheets: | |||
Current liability | (0.7) | (0.7) | |
Non-current liability | (28.5) | (41.3) | |
Net amount recognized | (29.2) | (42) | |
Amounts recognized in Accumulated other comprehensive income (loss): | |||
Net actuarial (gain) loss | (3.9) | 5.8 | |
Prior service cost | 0.4 | 0.5 | |
Total, before tax effect | (3.5) | 6.3 | |
Postretirement Benefits | |||
Change in benefit obligations: | |||
Benefit obligation, at beginning of year | 27.5 | 28.1 | |
Service cost | 0 | 0 | 0 |
Interest cost | 0.8 | 1.1 | 1.2 |
Curtailment | 0 | 0 | |
Actuarial losses (gains) | (0.7) | (0.1) | |
Benefits paid | (1.5) | (1.6) | |
Benefit obligation, at end of year | 26.1 | 27.5 | 28.1 |
Change in plan assets: | |||
Fair value of plan assets, at beginning of year | 0 | 0 | |
Actual gain on plan assets | 0 | 0 | |
Company contributions | 1.5 | 1.6 | |
Benefits paid | (1.5) | (1.6) | |
Fair value of plan assets, at end of year | 0 | 0 | $ 0 |
Funded status of the plan | (26.1) | (27.5) | |
Amounts recognized in the Consolidated Balance Sheets: | |||
Current liability | (1.5) | (1.6) | |
Non-current liability | (24.6) | (25.9) | |
Net amount recognized | (26.1) | (27.5) | |
Amounts recognized in Accumulated other comprehensive income (loss): | |||
Net actuarial (gain) loss | (0.9) | (0.2) | |
Prior service cost | 0 | 0 | |
Total, before tax effect | $ (0.9) | $ (0.2) |
Employee Pension and Postreti_6
Employee Pension and Postretirement Benefit Plans - Accumulated Benefit Obligation and Weighted Average Assumptions Used (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 353.5 | $ 333.9 |
Weighted average assumptions used to determine the pension benefit obligations: | ||
Discount rate | 2.50% | 3.25% |
Minimum | ||
Weighted average assumptions used to determine the pension benefit obligations: | ||
Rate of compensation increases | 3.00% | 3.50% |
Maximum | ||
Weighted average assumptions used to determine the pension benefit obligations: | ||
Rate of compensation increases | 4.00% |
Employee Pension and Postreti_7
Employee Pension and Postretirement Benefit Plans - Key Actuarial Assumptions Used to Determine Postretirement Benefit Obligations (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Retirement Benefits [Abstract] | ||
Health care cost trend rate for next year | 6.61% | 7.29% |
Health care cost trend rate for next year | 7.26% | 8.16% |
Ultimate rate | 4.50% | 4.50% |
Ultimate rate | 4.50% | 4.50% |
Discount rate | 2.50% | 3.25% |
Discount rate | 2.50% | 3.25% |
Employee Pension and Postreti_8
Employee Pension and Postretirement Benefit Plans - Summary of Net Periodic Cost of Pension and Postretirement Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Benefits | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | $ 1.8 | $ 1.5 | $ 1.9 |
Interest cost | 10.5 | 12.2 | 11.9 |
Expected return on plan assets | (14.5) | (15.2) | (15.6) |
Amortization of unrecognized prior service cost | 0.2 | 0.2 | 0.2 |
Amortization of unrecognized net loss | 0.6 | 0.5 | 0.5 |
Curtailment | 0 | (0.5) | 0 |
Net periodic (benefit) cost | (1.4) | (1.3) | (1.1) |
Postretirement Benefits | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 0.8 | 1.1 | 1.2 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of unrecognized prior service cost | 0 | 0 | 0 |
Amortization of unrecognized net loss | 0 | 0 | 0 |
Curtailment | 0 | 0 | 0 |
Net periodic (benefit) cost | $ 0.8 | $ 1.1 | $ 1.2 |
Employee Pension and Postreti_9
Employee Pension and Postretirement Benefit Plans - Weighted Average Assumptions Used to Determine Pension Benefit Costs (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Benefits | |||
Weighted average assumptions used to determine the periodic benefit costs: | |||
Discount rate | 3.25% | 4.40% | 3.70% |
Expected return on plan assets | 5.10% | 5.91% | 5.80% |
Pension Benefits | Minimum | |||
Weighted average assumptions used to determine the periodic benefit costs: | |||
Rate of compensation increases | 3.50% | 3.50% | 3.50% |
Pension Benefits | Maximum | |||
Weighted average assumptions used to determine the periodic benefit costs: | |||
Rate of compensation increases | 4.00% | 4.00% | 4.00% |
Postretirement Benefits | |||
Weighted average assumptions used to determine the periodic benefit costs: | |||
Discount rate | 3.25% | 4.40% | 3.70% |
Employee Pension and Postret_10
Employee Pension and Postretirement Benefit Plans - Estimated Future Pension and Postretirement Benefit Payments (Details) $ in Millions | Dec. 31, 2020USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | $ 20 |
2022 | 20.3 |
2023 | 20.8 |
2024 | 22 |
2025 | 20.4 |
2026-2030 | 97.1 |
Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | 1.5 |
2022 | 1.5 |
2023 | 1.5 |
2024 | 1.6 |
2025 | 1.6 |
2026-2030 | $ 7.8 |
Employee Pension and Postret_11
Employee Pension and Postretirement Benefit Plans - Multiemployer Pension Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Bakery and Confectionery Union and Industry International Pension Fund | |||
Multiemployer Plans [Line Items] | |||
Multiemployer plans contribution | $ 1.6 | $ 1.5 | $ 1.4 |
Central States Southeast and Southwest Areas Pension Fund | |||
Multiemployer Plans [Line Items] | |||
Multiemployer plans contribution | 1.1 | 1 | 0.8 |
Retail, Wholesale and Department Store International Union and Industry Pension Fund | |||
Multiemployer Plans [Line Items] | |||
Multiemployer plans contribution | 0 | 0.3 | 0.6 |
Settled withdrawal liability | 4.3 | ||
Rockford Area Dairy Industry Local 754, Intl. Brotherhood of Teamsters Retirement Pension Plan | |||
Multiemployer Plans [Line Items] | |||
Multiemployer plans contribution | 0.6 | 0.5 | 0.5 |
Western Conference of Teamsters Pension Fund | |||
Multiemployer Plans [Line Items] | |||
Multiemployer plans contribution | $ 0 | $ 0 | $ 0.8 |
Other Operating Expense, Net (D
Other Operating Expense, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |||
Restructuring programs | $ 71.1 | $ 99.3 | $ 149.1 |
(Gain) loss on divestitures | 0.3 | 0 | (14.3) |
Other | (0.3) | 0.3 | 0.9 |
Total other operating expense, net | $ 71.1 | $ 99.6 | $ 135.7 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Mar. 10, 2020 | Dec. 16, 2019 | Dec. 31, 2020USD ($)complaint |
Loss Contingencies [Line Items] | |||
Extension term | 77 days | 90 days | |
Suchanek et al v. Sturm Foods, Inc. and TreeHouse, Inc | Pending Litigation | |||
Loss Contingencies [Line Items] | |||
Loss contingency, estimate of possible loss | $ | $ 9 | ||
Class Actions Filed by Shareholders | |||
Loss Contingencies [Line Items] | |||
Loss contingency, number of claims | complaint | 5 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) lb in Millions, gal in Millions, dekatherm in Millions, MW in Millions | Dec. 31, 2025 | Dec. 31, 2020USD ($)gallbdekathermMW |
Interest rate swap agreements | ||
Derivative [Line Items] | ||
Notional amount | $ | $ 875,000,000 | |
Weighted average fixed interest rate | 2.68% | |
Foreign currency contracts | ||
Derivative [Line Items] | ||
Notional amount | $ | $ 7,700,000 | |
Electricity Contract | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | MW | 0.1 | |
Diesel Contract | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | gal | 20.1 | |
Natural Gas Contract | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | dekatherm | 4.5 | |
Coffee Contract | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | lb | 3.6 | |
Resin Contract | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | lb | 21 | |
Forecast | Interest rate swap agreements | ||
Derivative [Line Items] | ||
Weighted average fixed interest rate | 2.91% |
Derivative Instruments - Deriva
Derivative Instruments - Derivative, Fair Value, and Location on Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | $ 12.6 | $ 1.6 |
Liability derivatives | 98.1 | 57.2 |
Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 12.6 | 0.8 |
Liability derivatives | 0.7 | 0.6 |
Foreign currency contracts | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | 0 | 0.1 |
Interest rate swap agreements | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 0 | 0.8 |
Liability derivatives | $ 97.4 | $ 56.5 |
Derivative Instruments - Gains
Derivative Instruments - Gains and Losses on Derivative Contracts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Mark to market unrealized gain (loss), derivative | $ (29.9) | $ (47) | $ (22.5) |
Total unrealized loss | (29.9) | (47) | (22.5) |
Total realized (loss) gain | (27.8) | 8.5 | 10.8 |
Total loss | (57.7) | (38.5) | (11.7) |
Commodity contracts | Other expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Mark to market unrealized gain (loss), commodity contracts | 11.7 | 1.5 | (2.7) |
Commodity contracts | Manufacturing related to Cost of sales and transportation related to Selling and distribution | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total realized (loss) gain | (9.8) | 1.5 | 3.7 |
Foreign currency contracts | Other expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Mark to market unrealized gain (loss), derivative | 0.1 | (1.6) | 1 |
Foreign currency contracts | Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total realized (loss) gain | 0.4 | 0.5 | 1.6 |
Interest rate swap agreements | Other expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Mark to market unrealized gain (loss), derivative | (41.7) | (46.9) | (20.8) |
Interest rate swap agreements | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total realized (loss) gain | $ (18.4) | $ 6.5 | $ 5.5 |
Segment and Geographic Inform_3
Segment and Geographic Information and Major Customers - Additional Information (Details) - segment | Jan. 01, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | |||||
Number of operating segments | 2 | 2 | 3 | ||
Sales Revenue, Net | Customer Concentration Risk | Walmart Stores, Inc. and affiliates | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk, percentage | 23.90% | 24.40% | 23.60% | ||
Sales Revenue, Net | Customer Concentration Risk | Non-U.S | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk, percentage | 6.80% | 7.30% | 10.30% | ||
Sales Revenue, Net | Geographic Concentration Risk | Canada | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk, percentage | 5.20% | 5.80% | 8.70% |
Segment and Geographic Inform_4
Segment and Geographic Information and Major Customers - Financial Information Relating to Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 1,177.2 | $ 1,045.7 | $ 1,041.9 | $ 1,084.9 | $ 1,139.5 | $ 1,057.3 | $ 1,025.3 | $ 1,066.8 | $ 4,349.7 | $ 4,288.9 | $ 4,587.8 |
Unallocated cost of sales | (3,547.5) | (3,492.1) | (3,695.6) | ||||||||
Operating income (loss) | 149.1 | (16.1) | 83.4 | ||||||||
Depreciation | 132.5 | 136.5 | 145 | ||||||||
Meal Preparation | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 2,701.4 | 2,680.7 | 2,871.6 | ||||||||
Snacking & Beverages | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,649.4 | 1,608.2 | 1,716.2 | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 4,349.7 | 4,288.9 | 4,587.8 | ||||||||
Operating income (loss) | 605.2 | 574.1 | 599.1 | ||||||||
Operating Segments | Meal Preparation | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 2,701.4 | 2,680.7 | 2,871.6 | ||||||||
Operating income (loss) | 370.6 | 381.3 | 418.9 | ||||||||
Depreciation | 57.8 | 60.2 | 55.1 | ||||||||
Operating Segments | Snacking & Beverages | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,649.4 | 1,608.2 | 1,716.2 | ||||||||
Operating income (loss) | 234.6 | 192.8 | 180.2 | ||||||||
Depreciation | 64.6 | 68.6 | 76.3 | ||||||||
Segment Reconciling Items | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | (1.1) | 0 | 0 | ||||||||
Unallocated selling, general, and administrative expenses | (277.2) | (270.9) | (288.7) | ||||||||
Unallocated cost of sales | (36) | (16.5) | (11.1) | ||||||||
Unallocated corporate expense and other | (142.9) | (302.8) | (215.9) | ||||||||
Corporate office | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation | $ 10.1 | $ 7.7 | $ 13.6 |
Segment Information - Disaggreg
Segment Information - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 1,177.2 | $ 1,045.7 | $ 1,041.9 | $ 1,084.9 | $ 1,139.5 | $ 1,057.3 | $ 1,025.3 | $ 1,066.8 | $ 4,349.7 | $ 4,288.9 | $ 4,587.8 |
Retail grocery | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 3,581.7 | 3,419.2 | 3,610.7 | ||||||||
Food-away-from-home | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 245.6 | 357.2 | 383.7 | ||||||||
Industrial, co-manufacturing, and other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 522.4 | 512.5 | 593.4 | ||||||||
Meal Preparation | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 2,701.4 | 2,680.7 | 2,871.6 | ||||||||
Meal Preparation | Center store grocery | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,700.8 | 1,763.1 | 1,871.9 | ||||||||
Meal Preparation | Main course | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,000.6 | 917.6 | 999.7 | ||||||||
Snacking & Beverages | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,649.4 | 1,608.2 | 1,716.2 | ||||||||
Snacking & Beverages | Sweet & savory snacks | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,177.2 | 1,220.1 | 1,306.3 | ||||||||
Snacking & Beverages | Beverages & drink mixes | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 472.2 | $ 388.1 | $ 409.9 |
Segment and Geographic Inform_5
Segment and Geographic Information and Major Customers - Long-Lived Assets by Geographic Region (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 1,070 | $ 1,045.2 |
United States | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 927.4 | 899.6 |
Canada | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 125.2 | 129.1 |
Other | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 17.4 | $ 16.5 |
Segment and Geographic Inform_6
Segment and Geographic Information and Major Customers - Concentration of Risk by Risk Factor (Details) - Trade Receivables - Customer Concentration Risk | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Walmart Inc. | ||
Segment Reporting Information [Line Items] | ||
Concentration risk, percentage | 17.30% | |
Costco Wholesale Corporation | ||
Segment Reporting Information [Line Items] | ||
Concentration risk, percentage | 18.20% |
Quarterly Results of Operatio_3
Quarterly Results of Operations (unaudited) - Summary of Unaudited Quarterly Results of Operations (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Net sales | $ 1,177.2 | $ 1,045.7 | $ 1,041.9 | $ 1,084.9 | $ 1,139.5 | $ 1,057.3 | $ 1,025.3 | $ 1,066.8 | $ 4,349.7 | $ 4,288.9 | $ 4,587.8 | |||
Gross profit | 227.9 | 188.2 | 191.2 | 194.9 | 225.1 | 186.3 | 189.2 | 196.2 | 802.2 | 796.8 | 892.2 | |||
(Loss) income before income taxes from continuing operations | 56.5 | 22.4 | 11.2 | (73) | 19.9 | (97.4) | (56.9) | (21.4) | 17.1 | (155.8) | (57.6) | |||
Net income (loss) from continuing operations | 73.2 | 11.4 | (2.6) | (32.8) | 15.3 | (61) | (50.1) | (14.5) | 49.2 | (110.3) | (46.2) | |||
Net income (loss) from discontinued operations | (38.8) | 0.7 | 1.1 | 1.6 | 0.2 | (116.8) | (121.7) | (12.4) | (35.4) | (250.7) | (18.2) | |||
Net income (loss) | $ 34.4 | $ 12.1 | $ (1.5) | $ (31.2) | $ 15.5 | $ (177.8) | $ (171.8) | $ (26.9) | $ 13.8 | $ (361) | $ (64.4) | |||
Earnings (loss) per common share - basic: | ||||||||||||||
Continuing operations (in usd per share) | $ 1.30 | $ 0.20 | $ (0.05) | $ (0.58) | $ 0.27 | $ (1.08) | $ (0.89) | $ (0.26) | $ 0.87 | $ (1.96) | $ (0.83) | |||
Discontinued operations (in usd per share) | (0.69) | 0.01 | 0.02 | 0.03 | 0 | (2.07) | (2.16) | (0.22) | (0.63) | (4.46) | (0.33) | |||
Net earnings (loss) per share basic (in usd per share) | 0.61 | 0.21 | (0.03) | (0.55) | 0.27 | (3.16) | (3.05) | (0.48) | 0.24 | [1] | (6.42) | [1] | (1.15) | [1] |
Earnings (loss) per common share - diluted: | ||||||||||||||
Continuing operations (in usd per share) | 1.29 | 0.20 | (0.05) | (0.58) | 0.27 | (1.08) | (0.89) | (0.26) | 0.87 | (1.96) | (0.83) | |||
Discontinued operations (in usd per share) | (0.69) | 0.01 | 0.02 | 0.03 | 0 | (2.07) | (2.16) | (0.22) | (0.62) | (4.46) | (0.33) | |||
Net earnings (loss) per share diluted (in usd per share) | $ 0.61 | $ 0.21 | $ (0.03) | $ (0.55) | $ 0.27 | $ (3.16) | $ (3.05) | $ (0.48) | $ 0.24 | [1] | $ (6.42) | [1] | $ (1.15) | [1] |
[1] | The sum of the individual per share amounts may not add due to rounding. |
Subsequent Events (Details)
Subsequent Events (Details) - 2024 Notes - USD ($) $ in Millions | Jan. 15, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | |||
Senior notes | $ 602.9 | $ 602.9 | |
Redemption price, percentage | 101.00% | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Senior notes | $ 200 | ||
Stated debt interest rate | 6.00% | ||
Redemption price, percentage | 101.50% |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts - Deferred Tax Valuation Allowance (Details) - Deferred Tax Valuation Allowance - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance Beginning of Year | $ (167.9) | $ (15.1) | $ (14.9) |
Additions | (0.2) | (153.5) | (1.6) |
Reductions | 7.1 | 0.7 | 1.4 |
Balance End of Year | $ (161) | $ (167.9) | $ (15.1) |
Uncategorized Items - ths-20201
Label | Element | Value |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | us-gaap_RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability | $ 252,500,000 |