Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 01, 2021 | Oct. 29, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 1, 2021 | |
Document Transition Report | false | |
Entity File Number | 0-9286 | |
Entity Registrant Name | COCA-COLA CONSOLIDATED, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 56-0950585 | |
Entity Address, Address Line One | 4100 Coca‑Cola Plaza | |
Entity Address, City or Town | Charlotte | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 28211 | |
City Area Code | (704) | |
Local Phone Number | 557-4400 | |
Title of 12(b) Security | Common Stock, par value $1.00 per share | |
Trading Symbol | COKE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000317540 | |
Current Fiscal Year End Date | --12-31 | |
Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 7,141,447 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,232,242 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2021 | Sep. 27, 2020 | Oct. 01, 2021 | Sep. 27, 2020 | |
Net sales | $ 1,457,432 | $ 1,328,484 | $ 4,160,375 | $ 3,728,720 |
Cost of sales | 939,720 | 856,046 | 2,699,020 | 2,421,686 |
Gross profit | 517,712 | 472,438 | 1,461,355 | 1,307,034 |
Selling, delivery and administrative expenses | 380,681 | 368,594 | 1,109,279 | 1,087,251 |
Income from operations | 137,031 | 103,844 | 352,076 | 219,783 |
Interest expense, net | 8,097 | 9,033 | 25,208 | 27,778 |
Other expense, net | 34,982 | 21,394 | 94,078 | 39,826 |
Income before income taxes | 93,952 | 73,417 | 232,790 | 152,179 |
Income tax expense | 25,022 | 18,363 | 62,317 | 38,911 |
Net income | 68,930 | 55,054 | 170,473 | 113,268 |
Less: Net income attributable to noncontrolling interest | 0 | 3,170 | 0 | 7,153 |
Net income attributable to Coca‑Cola Consolidated, Inc. | $ 68,930 | $ 51,884 | $ 170,473 | $ 106,115 |
Common Stock | ||||
Basic net income per share based on net income attributable to Coca‑Cola Consolidated, Inc.: | ||||
Common Stock (in dollars per share) | $ 7.36 | $ 5.53 | $ 18.19 | $ 11.32 |
Weighted average number of Common Stock shares outstanding (in shares) | 7,141 | 7,141 | 7,141 | 7,141 |
Diluted net income per share based on net income attributable to Coca‑Cola Consolidated, Inc.: | ||||
Common Stock (in dollars per share) | $ 7.32 | $ 5.51 | $ 18.11 | $ 11.25 |
Weighted average number of Common Stock shares outstanding - assuming dilution (in shares) | 9,409 | 9,430 | 9,413 | 9,430 |
Cash dividends per share: | ||||
Common Stock (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.75 | $ 0.75 |
Class B Common Stock | ||||
Basic net income per share based on net income attributable to Coca‑Cola Consolidated, Inc.: | ||||
Common Stock (in dollars per share) | $ 7.36 | $ 5.53 | $ 18.19 | $ 11.32 |
Weighted average number of Common Stock shares outstanding (in shares) | 2,232 | 2,232 | 2,232 | 2,232 |
Diluted net income per share based on net income attributable to Coca‑Cola Consolidated, Inc.: | ||||
Common Stock (in dollars per share) | $ 7.31 | $ 5.51 | $ 18.10 | $ 11.24 |
Weighted average number of Common Stock shares outstanding - assuming dilution (in shares) | 2,268 | 2,289 | 2,272 | 2,289 |
Cash dividends per share: | ||||
Common Stock (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.75 | $ 0.75 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2021 | Sep. 27, 2020 | Oct. 01, 2021 | Sep. 27, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 68,930 | $ 55,054 | $ 170,473 | $ 113,268 |
Defined benefit plans reclassification including pension costs: | ||||
Actuarial gains | 916 | 896 | 2,745 | 2,689 |
Prior service credits | 1 | 4 | 2 | 11 |
Postretirement benefits reclassification including benefits costs: | ||||
Actuarial gains | 140 | 66 | 419 | 198 |
Interest rate swap | 0 | 303 | 556 | (710) |
Foreign currency translation adjustment | (6) | 11 | (15) | 13 |
Other comprehensive income, net of tax | 1,051 | 1,280 | 3,707 | 2,201 |
Comprehensive income | 69,981 | 56,334 | 174,180 | 115,469 |
Less: Comprehensive income attributable to noncontrolling interest | 0 | 3,170 | 0 | 7,153 |
Comprehensive income attributable to Coca‑Cola Consolidated, Inc. | $ 69,981 | $ 53,164 | $ 174,180 | $ 108,316 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Oct. 01, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 186,878 | $ 54,793 |
Accounts receivable, trade | 482,211 | 425,445 |
Allowance for doubtful accounts | (16,610) | (21,620) |
Accounts receivable from The Coca‑Cola Company | 58,323 | 49,203 |
Accounts receivable, other | 29,238 | 37,084 |
Inventories | 240,495 | 225,757 |
Prepaid expenses and other current assets | 84,152 | 74,146 |
Assets held for sale | 6,932 | 6,429 |
Total current assets | 1,071,619 | 851,237 |
Property, plant and equipment, net | 1,009,325 | 1,022,722 |
Right-of-use assets - operating leases | 140,410 | 134,383 |
Leased property under financing leases, net | 65,625 | 69,867 |
Other assets | 120,230 | 111,781 |
Goodwill | 165,903 | 165,903 |
Total assets | 3,419,940 | 3,222,450 |
Current Liabilities: | ||
Current portion of obligations under operating leases | 20,650 | 19,766 |
Current portion of obligations under financing leases | 6,009 | 5,860 |
Accounts payable, trade | 270,937 | 217,560 |
Accounts payable to The Coca‑Cola Company | 153,701 | 107,181 |
Other accrued liabilities | 214,101 | 205,141 |
Accrued compensation | 96,617 | 87,608 |
Accrued interest payable | 6,281 | 3,944 |
Total current liabilities | 768,296 | 647,060 |
Deferred income taxes | 151,558 | 139,423 |
Pension and postretirement benefit obligations | 110,582 | 113,325 |
Other liabilities | 726,292 | 679,280 |
Noncurrent portion of obligations under operating leases | 123,627 | 119,923 |
Noncurrent portion of obligations under financing leases | 66,268 | 69,984 |
Long-term debt | 793,177 | 940,465 |
Total liabilities | 2,739,800 | 2,709,460 |
Commitments and Contingencies | ||
Equity: | ||
Additional paid-in capital | 135,953 | 135,953 |
Retained earnings | 707,723 | 544,280 |
Accumulated other comprehensive loss | (115,346) | (119,053) |
Total equity | 680,140 | 512,990 |
Total liabilities and equity | 3,419,940 | 3,222,450 |
Common Stock | ||
Equity: | ||
Common Stock | 10,204 | 10,204 |
Treasury stock, at cost | (60,845) | (60,845) |
Class B Common Stock | ||
Equity: | ||
Common Stock | 2,860 | 2,860 |
Treasury stock, at cost | (409) | (409) |
Distribution agreements, net | ||
Current Assets: | ||
Intangible assets, net | 835,403 | 853,753 |
Customer lists, net | ||
Current Assets: | ||
Intangible assets, net | $ 11,425 | $ 12,804 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Oct. 01, 2021 | Dec. 31, 2020 |
Common Stock | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 10,203,821 | 10,203,821 |
Treasury stock, shares (in shares) | 3,062,374 | 3,062,374 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 2,860,356 | 2,860,356 |
Treasury stock, shares (in shares) | 628,114 | 628,114 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 01, 2021 | Sep. 27, 2020 | |
Cash Flows from Operating Activities: | ||
Net income | $ 170,473 | $ 113,268 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation expense from property, plant and equipment and financing leases | 117,910 | 117,203 |
Amortization of intangible assets and deferred proceeds, net | 17,431 | 17,286 |
Fair value adjustment of acquisition related contingent consideration | 90,905 | 35,068 |
Deferred payroll taxes under CARES Act | (18,739) | 24,648 |
Deferred income taxes | 10,907 | 5,302 |
Loss on sale of property, plant and equipment | 4,017 | 3,656 |
Impairment and abandonment of property, plant and equipment | 3,200 | 7,908 |
Amortization of debt costs | 790 | 778 |
Change in current assets less current liabilities | 60,546 | 57,651 |
Change in other noncurrent assets | 10,355 | 16,360 |
Change in other noncurrent liabilities | (27,905) | (23,775) |
Other | (15) | 1,048 |
Total adjustments | 269,402 | 263,133 |
Net cash provided by operating activities | 439,875 | 376,401 |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment | (119,620) | (110,717) |
Proceeds from the sale of property, plant and equipment | 4,215 | 2,397 |
Investment in CONA Services LLC | (2,194) | (1,770) |
Other distribution agreements | (1,998) | 0 |
Net cash used in investing activities | (119,597) | (110,090) |
Cash Flows from Financing Activities: | ||
Borrowings under revolving credit facility | 55,000 | 235,000 |
Payments on revolving credit facility | (55,000) | (280,000) |
Borrowings under term loan facility | 70,000 | 0 |
Payments on term loan facility | (217,500) | (22,500) |
Payments of acquisition related contingent consideration | (28,640) | (31,999) |
Cash dividends paid | (7,030) | (7,030) |
Payments on financing lease obligations | (3,567) | (4,428) |
Debt issuance fees | (1,456) | (145) |
Net cash used in financing activities | (188,193) | (111,102) |
Net increase in cash during period | 132,085 | 155,209 |
Cash at beginning of period | 54,793 | 9,614 |
Cash at end of period | 186,878 | 164,823 |
Significant non-cash investing and financing activities: | ||
Right-of-use assets obtained in exchange for operating lease obligations | 21,759 | 38,317 |
Additions to property, plant and equipment accrued and recorded in accounts payable, trade | 9,612 | 25,477 |
Additions to leased property under financing leases | $ 0 | $ 61,121 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Class B Common Stock | Total Equity of Coca‑Cola Consolidated, Inc. | Total Equity of Coca‑Cola Consolidated, Inc.Common Stock | Total Equity of Coca‑Cola Consolidated, Inc.Class B Common Stock | Common StockCommon Stock | Common StockClass B Common Stock | Additional Paid-in Capital | Retained Earnings | Retained EarningsCommon Stock | Retained EarningsClass B Common Stock | Accumulated Other Comprehensive Loss | Treasury Stock - Common StockCommon Stock | Treasury Stock - Common StockClass B Common Stock | Non- controlling Interest |
Beginning Balance at Dec. 29, 2019 | $ 451,116 | $ 346,952 | $ 10,204 | $ 2,860 | $ 128,983 | $ 381,161 | $ (115,002) | $ (60,845) | $ (409) | $ 104,164 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net income | 113,268 | 106,115 | 106,115 | 7,153 | ||||||||||||
Other comprehensive income, net of tax | 2,201 | 2,201 | 2,201 | |||||||||||||
Cash dividends paid: Common Stock | $ (5,356) | $ (1,674) | $ (5,356) | $ (1,674) | $ (5,356) | $ (1,674) | ||||||||||
Ending Balance at Sep. 27, 2020 | 559,555 | 448,238 | 10,204 | 2,860 | 128,983 | 480,246 | (112,801) | (60,845) | (409) | 111,317 | ||||||
Beginning Balance at Jun. 28, 2020 | 505,565 | 397,418 | 10,204 | 2,860 | 128,983 | 430,706 | (114,081) | (60,845) | (409) | 108,147 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net income | 55,054 | 51,884 | 51,884 | 3,170 | ||||||||||||
Other comprehensive income, net of tax | 1,280 | 1,280 | 1,280 | |||||||||||||
Cash dividends paid: Common Stock | (1,785) | (559) | (1,785) | (559) | (1,785) | (559) | ||||||||||
Ending Balance at Sep. 27, 2020 | 559,555 | 448,238 | 10,204 | 2,860 | 128,983 | 480,246 | (112,801) | (60,845) | (409) | 111,317 | ||||||
Beginning Balance at Dec. 31, 2020 | 512,990 | 512,990 | 10,204 | 2,860 | 135,953 | 544,280 | (119,053) | (60,845) | (409) | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net income | 170,473 | 170,473 | 170,473 | |||||||||||||
Other comprehensive income, net of tax | 3,707 | 3,707 | 3,707 | |||||||||||||
Cash dividends paid: Common Stock | (5,356) | (1,674) | (5,356) | (1,674) | (5,356) | (1,674) | ||||||||||
Ending Balance at Oct. 01, 2021 | 680,140 | 680,140 | 10,204 | 2,860 | 135,953 | 707,723 | (115,346) | (60,845) | (409) | 0 | ||||||
Beginning Balance at Jul. 02, 2021 | 612,502 | 612,502 | 10,204 | 2,860 | 135,953 | 641,136 | (116,397) | (60,845) | (409) | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net income | 68,930 | 68,930 | 68,930 | |||||||||||||
Other comprehensive income, net of tax | 1,051 | 1,051 | 1,051 | |||||||||||||
Cash dividends paid: Common Stock | $ (1,785) | $ (558) | $ (1,785) | $ (558) | $ (1,785) | $ (558) | ||||||||||
Ending Balance at Oct. 01, 2021 | $ 680,140 | $ 680,140 | $ 10,204 | $ 2,860 | $ 135,953 | $ 707,723 | $ (115,346) | $ (60,845) | $ (409) | $ 0 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2021 | Sep. 27, 2020 | Oct. 01, 2021 | Sep. 27, 2020 | |
Common Stock | ||||
Cash dividend per share (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.75 | $ 0.75 |
Class B Common Stock | ||||
Cash dividend per share (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.75 | $ 0.75 |
Critical Accounting Policies an
Critical Accounting Policies and Recent Accounting Pronouncements | 9 Months Ended |
Oct. 01, 2021 | |
Accounting Policies [Abstract] | |
Critical Accounting Policies and Recent Accounting Pronouncements | Critical Accounting Policies and Recent Accounting Pronouncements The condensed consolidated financial statements include the accounts of Coca‑Cola Consolidated, Inc. and its majority-owned subsidiaries (the “Company”). All significant intercompany accounts and transactions have been eliminated. The condensed consolidated financial statements reflect all adjustments, including normal, recurring accruals, which, in the opinion of management, are necessary for a fair statement of the results for the periods presented. Each of the Company’s quarters, other than the fourth quarter, ends on the Friday closest to the last day of the corresponding quarterly calendar period. The Company’s fourth quarter and fiscal year end on December 31 regardless of the day of the week on which December 31 falls. The condensed consolidated financial statements presented are: • The financial position as of October 1, 2021 and December 31, 2020. • The results of operations, comprehensive income and changes in equity for the three-month periods ended October 1, 2021 (the “third quarter” of fiscal 2021 (“2021”)) and September 27, 2020 (the “third quarter” of fiscal 2020 (“2020”)) and the nine-month periods ended October 1, 2021 (the “first nine months” of 2021) and September 27, 2020 (the “first nine months” of 2020). • The changes in cash flows for the first nine months of 2021 and the first nine months of 2020. The condensed consolidated financial statements include the consolidated operations of the Company and its majority-owned subsidiaries. During 2020, Piedmont Coca-Cola Bottling Partnership (“Piedmont”) was the Company’s only subsidiary that had a significant noncontrolling interest. On December 9, 2020, an indirect wholly owned subsidiary of the Company purchased the remaining 22.7% general partnership interest in Piedmont from an indirect wholly owned subsidiary of The Coca‑Cola Company, and Piedmont became an indirect wholly owned subsidiary of the Company. The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial reporting and the instructions to Form 10-Q and Article 10 of Regulation S-X. The accounting policies followed in the presentation of interim financial results are consistent with those followed on an annual basis. These policies are presented in Note 1 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for 2020 filed with the United States Securities and Exchange Commission. The preparation of condensed consolidated financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Critical Accounting Policies In the ordinary course of business, the Company has made a number of estimates and assumptions relating to the reporting of its results of operations and financial position in the preparation of its condensed consolidated financial statements in conformity with GAAP. Actual results could differ significantly from those estimates under different assumptions and conditions. The Company included in its Annual Report on Form 10-K for 2020 under the caption “Discussion of Critical Accounting Policies and Estimates and Recent Accounting Pronouncements” in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations,” a discussion of the Company’s most critical accounting policies, which are those the Company believes to be the most important to the portrayal of its financial condition and results of operations and require management’s most difficult, subjective and complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Any changes in critical accounting policies and estimates are discussed with the Audit Committee of the Company’s Board of Directors during the quarter in which a change is contemplated and prior to making such change. Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2019‑12, “Simplifying the Accounting for Income Taxes,” which simplifies the accounting for income taxes by removing certain exceptions to the general principles in income tax accounting and improves consistent application of and simplifies GAAP for |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Oct. 01, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Coca‑Cola Company The Company’s business consists primarily of the distribution, marketing and manufacture of nonalcoholic beverages of The Coca‑Cola Company, which is the sole owner of the formulas under which the primary components of its soft drink products, either concentrate or syrup, are manufactured. J. Frank Harrison, III, Chairman of the Board of Directors and Chief Executive Officer of the Company, together with the trustees of certain trusts established for the benefit of certain relatives of the late J. Frank Harrison, Jr., control shares representing approximately 86% of the total voting power of the Company’s total outstanding Common Stock and Class B Common Stock on a consolidated basis. As of October 1, 2021, The Coca‑Cola Company owned approximately 27% of the Company’s total outstanding Common Stock and Class B Common Stock on a consolidated basis, representing approximately 5% of the total voting power of the Company’s Common Stock and Class B Common Stock voting together. The number of shares of the Company’s Common Stock currently held by The Coca‑Cola Company gives it the right to have a designee proposed by the Company for nomination to the Company’s Board of Directors in the Company’s annual proxy statement. J. Frank Harrison, III and the trustees of the J. Frank Harrison, Jr. family trusts described above, have agreed to vote the shares of the Company’s Class B Common Stock that they control in favor of such designee. The Coca‑Cola Company does not own any shares of the Company’s Class B Common Stock. The following table summarizes the significant cash transactions between the Company and The Coca‑Cola Company: Third Quarter First Nine Months (in thousands) 2021 2020 2021 2020 Payments made by the Company to The Coca-Cola Company (1) $ 403,889 $ 369,186 $ 1,120,042 $ 1,012,568 Payments made by The Coca-Cola Company to the Company 51,024 30,458 131,026 91,086 (1) This excludes payments by the Company to Coca-Cola Refreshments USA, Inc., a wholly owned subsidiary of The Coca‑Cola Company, as discussed in the next section. More than 80% of the payments made by the Company to The Coca‑Cola Company were for concentrate, syrup, sweetener and other finished goods products, which were recorded in cost of sales in the condensed consolidated statements of operations and represent the primary components of the soft drink products the Company manufactures and distributes. Payments made by the Company to The Coca‑Cola Company also included payments for marketing programs associated with large, national customers managed by The Coca‑Cola Company on behalf of the Company, which were recorded as a reduction to net sales in the condensed consolidated statements of operations. Other payments made by the Company to The Coca‑Cola Company related to cold drink equipment parts, fees associated with the rights to distribute certain brands and other customary items. Payments made by The Coca‑Cola Company to the Company included annual funding in connection with the Company’s agreement to support certain business initiatives developed by The Coca‑Cola Company and funding associated with the delivery of post-mix products to various customers, both of which were recorded as a reduction to cost of sales in the condensed consolidated statements of operations. Post-mix products are dispensed through equipment that mixes fountain syrups with carbonated or still water, enabling fountain retailers to sell finished products to consumers in cups or glasses. Payments made by The Coca‑Cola Company to the Company also included transportation services and fountain product delivery and equipment repair services performed by the Company on The Coca‑Cola Company’s equipment, all of which were recorded in net sales in the condensed consolidated statements of operations. Coca‑Cola Refreshments USA, Inc. (“CCR”) The Company, The Coca‑Cola Company and CCR entered into comprehensive beverage agreements (collectively, the “CBA”). The CBA requires the Company to make quarterly sub-bottling payments to CCR on a continuing basis in exchange for the grant of exclusive rights to distribute, promote, market and sell the authorized brands of The Coca‑Cola Company and related products in certain distribution territories the Company acquired from CCR. These sub-bottling payments are based on gross profit derived from the Company’s sales of certain beverages and beverage products that are sold under the same trademarks that identify a covered beverage, a beverage product or certain cross-licensed brands. Sub-bottling payments to CCR were $28.6 million in the first nine months of 2021 and $32.0 million in the first nine months of 2020. The following table summarizes the liability recorded by the Company to reflect the estimated fair value of contingent consideration related to future sub‑bottling payments to CCR: (in thousands) October 1, 2021 December 31, 2020 Current portion of acquisition related contingent consideration $ 47,212 $ 36,020 Noncurrent portion of acquisition related contingent consideration 449,447 398,674 Total acquisition related contingent consideration $ 496,659 $ 434,694 Southeastern Container (“Southeastern”) The Company is a shareholder of Southeastern, a plastic bottle manufacturing cooperative. The Company accounts for Southeastern as an equity method investment. The Company’s investment in Southeastern, which was classified as other assets in the condensed consolidated balance sheets, was $22.4 million as of October 1, 2021 and $21.9 million as of December 31, 2020. South Atlantic Canners, Inc. (“SAC”) The Company is a shareholder of SAC, a manufacturing cooperative located in Bishopville, South Carolina. All of SAC’s shareholders are Coca‑Cola bottlers and each has equal voting rights. The Company accounts for SAC as an equity method investment. The Company’s investment in SAC, which was classified as other assets in the condensed consolidated balance sheets, was $8.2 million as of October 1, 2021 and $8.0 million as of December 31, 2020. The Company also guarantees a portion of SAC’s debt; see Note 20 for additional information. The Company receives a fee for managing the day-to-day operations of SAC pursuant to a management agreement. Proceeds from management fees received from SAC, which were recorded as a reduction to cost of sales in the condensed consolidated statements of operations, were $6.6 million in the first nine months of 2021 and $6.9 million in the first nine months of 2020. Coca‑Cola Bottlers’ Sales and Services Company, LLC (“CCBSS”) Along with all other Coca‑Cola bottlers in the United States and Canada, the Company is a member of CCBSS, a company formed to provide certain procurement and other services with the intention of enhancing the efficiency and competitiveness of the Coca‑Cola bottling system. The Company accounts for CCBSS as an equity method investment and its investment in CCBSS is not material. CCBSS negotiates the procurement for the majority of the Company’s raw materials, excluding concentrate, and the Company receives a rebate from CCBSS for the purchase of these raw materials. The Company had rebates due from CCBSS of $4.4 million on October 1, 2021 and $6.3 million on December 31, 2020, which were classified as accounts receivable, other in the condensed consolidated balance sheets. In addition, the Company pays an administrative fee to CCBSS for its services. The Company incurred administrative fees to CCBSS of $2.2 million in the first nine months of 2021 and $2.1 million in the first nine months of 2020, which were classified as selling, delivery and administrative (“SD&A”) expenses in the condensed consolidated statements of operations. CONA Services LLC (“CONA”) The Company is a member of CONA, an entity formed with The Coca‑Cola Company and certain other Coca‑Cola bottlers to provide business process and information technology services to its members. The Company accounts for CONA as an equity method investment. The Company’s investment in CONA, which was classified as other assets in the condensed consolidated balance sheets, was $13.3 million as of October 1, 2021 and $11.5 million as of December 31, 2020. Pursuant to an amended and restated master services agreement with CONA, the Company is authorized to use the Coke One North America system (the “CONA System”), a uniform information technology system developed to promote operational efficiency and uniformity among North American Coca‑Cola bottlers. In exchange for the Company’s rights to use the CONA System and receive CONA-related services, it is charged service fees by CONA. The Company incurred CONA service fees of $18.9 million in the first nine months of 2021 and $17.4 million in the first nine months of 2020. Related Party Leases The Company leases its headquarters office facility and an adjacent office facility in Charlotte, North Carolina from Beacon Investment Corporation, of which J. Frank Harrison, III is the majority stockholder and Morgan H. Everett, Vice Chair of the Company’s Board of Directors, is a minority stockholder. The annual base rent the Company is obligated to pay under this lease is subject to an adjustment for an inflation factor and the lease expires on December 31, 2029. The principal balance outstanding under this lease was $28.9 million on October 1, 2021 and $30.8 million on December 31, 2020. The Company leases the Snyder Production Center and an adjacent sales facility in Charlotte, North Carolina from Harrison Limited Partnership One, which is directly and indirectly owned by trusts of which J. Frank Harrison, III and Sue Anne H. Wells, a director of the Company, are trustees and beneficiaries and of which Morgan H. Everett is a permissible, discretionary beneficiary. The annual base rent the Company is obligated to pay under this lease is subject to an adjustment for an inflation factor and the lease expires on December 31, 2035. The principal balance outstanding under this lease was $59.8 million on October 1, 2021 and $61.9 million on December 31, 2020. A summary of rental payments for these leases related to the third quarter and the first nine months of 2021 and 2020 is as follows: Third Quarter First Nine Months (in thousands) 2021 2020 2021 2020 Company headquarters $ 944 $ 826 $ 2,834 $ 2,478 Snyder Production Center 1,112 1,112 3,338 3,338 Long-Term Performance Equity Plan The Long-Term Performance Equity Plan compensates J. Frank Harrison, III based on the Company’s performance. Awards granted to Mr. Harrison under the Long-Term Performance Equity Plan are earned based on the Company’s attainment during a performance period of certain performance measures, each as specified by the Compensation Committee of the Company’s Board of Directors. These awards may be settled in cash and/or shares of Class B Common Stock, based on the average of the closing prices of shares of Common Stock during the last 20 trading days of the performance period. Compensation expense for the Long-Term Performance Equity Plan, which was included in SD&A expenses in the condensed consolidated statements of operations, was $7.6 million in the first nine months of 2021 and $7.2 million in the first nine months of 2020. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Oct. 01, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company’s sales are divided into two main categories: (i) bottle/can sales and (ii) other sales. Bottle/can sales include products packaged primarily in plastic bottles and aluminum cans. Bottle/can net pricing is based on the invoice price charged to customers reduced by any promotional allowances. Bottle/can net pricing per unit is impacted by the price charged per package, the sales volume generated for each package and the channels in which those packages are sold. Other sales include sales to other Coca‑Cola bottlers, post-mix products, transportation revenue and equipment maintenance revenue. The Company’s contracts are derived from customer orders, including customer sales incentives, generated through an order processing and replenishment model. Generally, the Company’s service contracts and contracts related to the delivery of specifically identifiable products have a single performance obligation. Revenues do not include sales or other taxes collected from customers. The Company has defined its performance obligations for its contracts as either at a point in time or over time. Bottle/can sales, sales to other Coca‑Cola bottlers and post-mix sales are recognized when control transfers to a customer, which is generally upon delivery and is considered a single point in time (“point in time”). Point in time sales accounted for approximately 97% of the Company’s net sales in both the first nine months of 2021 and the first nine months of 2020. Other sales, which include revenue for service fees related to the repair of cold drink equipment and delivery fees for freight hauling and brokerage services, are recognized over time (“over time”). Revenues related to cold drink equipment repair are recognized as the respective services are completed using a cost-to-cost input method. Repair services are generally completed in less than one day but can extend up to one month. Revenues related to freight hauling and brokerage services are recognized as the delivery occurs using a miles driven output method. Generally, delivery occurs and freight charges are recognized in the same day. Over time sales orders open at the end of a financial period are not material to the condensed consolidated financial statements. The following table represents a disaggregation of revenue from contracts with customers: Third Quarter First Nine Months (in thousands) 2021 2020 2021 2020 Point in time net sales: Nonalcoholic Beverages - point in time $ 1,415,643 $ 1,286,542 $ 4,029,846 $ 3,607,502 Total point in time net sales $ 1,415,643 $ 1,286,542 $ 4,029,846 $ 3,607,502 Over time net sales: Nonalcoholic Beverages - over time $ 11,328 $ 8,729 $ 32,130 $ 25,874 All Other - over time 30,461 33,213 98,399 95,344 Total over time net sales $ 41,789 $ 41,942 $ 130,529 $ 121,218 Total net sales $ 1,457,432 $ 1,328,484 $ 4,160,375 $ 3,728,720 The Company’s allowance for doubtful accounts in the condensed consolidated balance sheets includes a reserve for customer returns and an allowance for credit losses. The Company experiences customer returns primarily as a result of damaged or out-of-date product. At any given time, the Company estimates less than 1% of bottle/can sales and post-mix sales could be at risk for return by customers. Returned product is recognized as a reduction to net sales. The Company’s reserve for customer returns was $3.0 million as of October 1, 2021 and $3.6 million as of December 31, 2020. The Company estimates an allowance for credit losses, based on historic days’ sales outstanding trends, aged customer balances, previously written-off balances and expected recoveries up to balances previously written off, in order to present the net amount expected to be collected. Accounts receivable balances are written off when determined uncollectible and are recognized as a reduction to the allowance for credit losses. A reconciliation of the activity for the allowance for credit losses is as follows: First Nine Months (in thousands) 2021 2020 Beginning balance - allowance for credit losses $ 18,070 $ 10,232 Additions charged to costs and expenses 2,619 14,238 Deductions (7,079) (2,970) Ending balance - allowance for credit losses $ 13,610 $ 21,500 |
Segments
Segments | 9 Months Ended |
Oct. 01, 2021 | |
Segment Reporting [Abstract] | |
Segments | Segments The Company evaluates segment reporting in accordance with FASB Accounting Standards Codification Topic 280, Segment Reporting, each reporting period, including evaluating the reporting package reviewed by the Chief Operating Decision Maker (the “CODM”). The Company has concluded the Chief Executive Officer, the Chief Operating Officer and the Chief Financial Officer, as a group, represent the CODM. Asset information is not provided to the CODM. The Company believes three operating segments exist. Nonalcoholic Beverages represents the vast majority of the Company’s consolidated net sales and income from operations. The additional two operating segments do not meet the quantitative thresholds for separate reporting, either individually or in the aggregate, and, therefore, have been combined into “All Other.” The Company’s segment results are as follows: Third Quarter First Nine Months (in thousands) 2021 2020 2021 2020 Net sales: Nonalcoholic Beverages $ 1,426,971 $ 1,295,271 $ 4,061,976 $ 3,633,376 All Other 88,991 84,776 272,132 246,406 Eliminations (1) (58,530) (51,563) (173,733) (151,062) Consolidated net sales $ 1,457,432 $ 1,328,484 $ 4,160,375 $ 3,728,720 (1) The entire net sales elimination represents net sales from the All Other segment to the Nonalcoholic Beverages segment. Sales between these segments are recognized at either fair market value or cost depending on the nature of the transaction. Third Quarter First Nine Months (in thousands) 2021 2020 2021 2020 Income from operations: Nonalcoholic Beverages $ 144,130 $ 108,035 $ 363,544 $ 227,559 All Other (7,099) (4,191) (11,468) (7,776) Consolidated income from operations $ 137,031 $ 103,844 $ 352,076 $ 219,783 Depreciation and amortization: Nonalcoholic Beverages $ 44,313 $ 45,066 $ 126,088 $ 125,733 All Other 3,145 3,027 9,253 8,756 Consolidated depreciation and amortization $ 47,458 $ 48,093 $ 135,341 $ 134,489 |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Oct. 01, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share The following table sets forth the computation of basic net income per share and diluted net income per share under the two-class method: Third Quarter First Nine Months (in thousands, except per share data) 2021 2020 2021 2020 Numerator for basic and diluted net income per Common Stock and Class B Common Stock share: Net income attributable to Coca‑Cola Consolidated, Inc. $ 68,930 $ 51,884 $ 170,473 $ 106,115 Less dividends: Common Stock 1,785 1,785 5,356 5,356 Class B Common Stock 558 559 1,674 1,674 Total undistributed earnings $ 66,587 $ 49,540 $ 163,443 $ 99,085 Common Stock undistributed earnings – basic $ 50,731 $ 37,743 $ 124,522 $ 75,490 Class B Common Stock undistributed earnings – basic 15,856 11,797 38,921 23,595 Total undistributed earnings – basic $ 66,587 $ 49,540 $ 163,443 $ 99,085 Common Stock undistributed earnings – diluted $ 50,536 $ 37,515 $ 123,993 $ 75,034 Class B Common Stock undistributed earnings – diluted 16,051 12,025 39,450 24,051 Total undistributed earnings – diluted $ 66,587 $ 49,540 $ 163,443 $ 99,085 Numerator for basic net income per Common Stock share: Dividends on Common Stock $ 1,785 $ 1,785 $ 5,356 $ 5,356 Common Stock undistributed earnings – basic 50,731 37,743 124,522 75,490 Numerator for basic net income per Common Stock share $ 52,516 $ 39,528 $ 129,878 $ 80,846 Numerator for basic net income per Class B Common Stock share: Dividends on Class B Common Stock $ 558 $ 559 $ 1,674 $ 1,674 Class B Common Stock undistributed earnings – basic 15,856 11,797 38,921 23,595 Numerator for basic net income per Class B Common Stock share $ 16,414 $ 12,356 $ 40,595 $ 25,269 Numerator for diluted net income per Common Stock share: Dividends on Common Stock $ 1,785 $ 1,785 $ 5,356 $ 5,356 Dividends on Class B Common Stock assumed converted to Common Stock 558 559 1,674 1,674 Common Stock undistributed earnings – diluted 66,587 49,540 163,443 99,085 Numerator for diluted net income per Common Stock share $ 68,930 $ 51,884 $ 170,473 $ 106,115 Numerator for diluted net income per Class B Common Stock share: Dividends on Class B Common Stock $ 558 $ 559 $ 1,674 $ 1,674 Class B Common Stock undistributed earnings – diluted 16,051 12,025 39,450 24,051 Numerator for diluted net income per Class B Common Stock share $ 16,609 $ 12,584 $ 41,124 $ 25,725 Third Quarter First Nine Months (in thousands, except per share data) 2021 2020 2021 2020 Denominator for basic net income per Common Stock and Class B Common Stock share: Common Stock weighted average shares outstanding – basic 7,141 7,141 7,141 7,141 Class B Common Stock weighted average shares outstanding – basic 2,232 2,232 2,232 2,232 Denominator for diluted net income per Common Stock and Class B Common Stock share: Common Stock weighted average shares outstanding – diluted (assumes conversion of Class B Common Stock to Common Stock) 9,409 9,430 9,413 9,430 Class B Common Stock weighted average shares outstanding – diluted 2,268 2,289 2,272 2,289 Basic net income per share: Common Stock $ 7.36 $ 5.53 $ 18.19 $ 11.32 Class B Common Stock $ 7.36 $ 5.53 $ 18.19 $ 11.32 Diluted net income per share: Common Stock $ 7.32 $ 5.51 $ 18.11 $ 11.25 Class B Common Stock $ 7.31 $ 5.51 $ 18.10 $ 11.24 NOTES TO TABLE (1) For purposes of the diluted net income per share computation for Common Stock, all shares of Class B Common Stock are assumed to be converted; therefore, 100% of undistributed earnings is allocated to Common Stock. (2) For purposes of the diluted net income per share computation for Class B Common Stock, weighted average shares of Class B Common Stock are assumed to be outstanding for the entire period and not converted. (3) For periods presented during which the Company has net income, the denominator for diluted net income per share for Common Stock and Class B Common Stock includes the dilutive effect of shares relative to the Long-Term Performance Equity Plan . For periods presented during which the Company has net loss, the unvested shares granted pursuant to the Long-Term Performance Equity Plan are excluded from the computation of diluted net loss per share, as the effect would have been anti-dilutive. See Note 2 for additional information on the Long-Term Performance Equity Plan . (4) The Long-Term Performance Equity Plan awards may be settled in cash and/or shares of the Company’s Class B Common Stock. Once an election has been made to settle an award in cash, the dilutive effect of shares relative to such award is prospectively removed from the denominator in the computation of diluted net income per share. (5) The Company did not have anti-dilutive shares for any periods presented. |
Inventories
Inventories | 9 Months Ended |
Oct. 01, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following: (in thousands) October 1, 2021 December 31, 2020 Finished products $ 142,715 $ 140,080 Manufacturing materials 55,296 47,081 Plastic shells, plastic pallets and other inventories 42,484 38,596 Total inventories $ 240,495 $ 225,757 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 9 Months Ended |
Oct. 01, 2021 | |
Prepaid Expense and Other Assets [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: (in thousands) October 1, 2021 December 31, 2020 Repair parts $ 27,537 $ 26,811 Commodity hedges at fair market value 8,807 2,417 Prepaid software 6,185 6,650 Prepaid marketing 5,723 4,773 Prepaid taxes 4,411 8,428 Other prepaid expenses and other current assets 31,489 25,067 Total prepaid expenses and other current assets $ 84,152 $ 74,146 |
Assets Held for Sale
Assets Held for Sale | 9 Months Ended |
Oct. 01, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held for Sale | Assets Held for Sale As of October 1, 2021, certain properties owned by the Company met the accounting guidance criteria to be classified as assets held for sale. The properties primarily relate to warehousing and distribution operations that have been consolidated into new facilities. All properties classified as held for sale are included in the Nonalcoholic Beverages segment. There are not any liabilities held for sale associated with these properties and none meet the accounting guidance criteria to be classified as discontinued operations. Following is a summary of the assets held for sale: (in thousands) October 1, 2021 December 31, 2020 Land $ 2,918 $ 2,559 Buildings and leasehold and land improvements 4,014 3,870 Total assets held for sale $ 6,932 $ 6,429 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 9 Months Ended |
Oct. 01, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net The principal categories and estimated useful lives of property, plant and equipment, net were as follows: (in thousands) October 1, 2021 December 31, 2020 Estimated Useful Lives Land $ 80,261 $ 81,981 Buildings 261,976 240,173 8-50 years Machinery and equipment 436,049 392,998 5-20 years Transportation equipment 454,999 445,218 3-20 years Furniture and fixtures 93,640 96,606 3-10 years Cold drink dispensing equipment 440,221 465,881 3-17 years Leasehold and land improvements 171,871 155,077 5-20 years Software for internal use 48,043 46,569 3-10 years Construction in progress 12,661 54,505 Total property, plant and equipment, at cost 1,999,721 1,979,008 Less: Accumulated depreciation and amortization 990,396 956,286 Property, plant and equipment, net $ 1,009,325 $ 1,022,722 |
Leases
Leases | 9 Months Ended |
Oct. 01, 2021 | |
Leases [Abstract] | |
Leases | Leases Following is a summary of the weighted average remaining lease term and the weighted average discount rate for the Company’s leases: October 1, 2021 December 31, 2020 Weighted average remaining lease term: Operating leases 8.6 years 9.4 years Financing leases 12.7 years 13.4 years Weighted average discount rate: Operating leases 3.7 % 4.0 % Financing leases 3.1 % 3.2 % Following is a summary of the Company’s leases within the condensed consolidated statements of operations: Third Quarter First Nine Months (in thousands) 2021 2020 2021 2020 Operating lease costs $ 6,828 $ 6,243 $ 19,647 $ 18,392 Short-term and variable leases 4,561 3,982 12,932 10,980 Depreciation expense from financing leases 1,414 1,415 4,242 3,264 Interest expense on financing lease obligations 575 613 1,738 1,120 Total lease cost $ 13,378 $ 12,253 $ 38,559 $ 33,756 The future minimum lease payments related to the Company’s leases include renewal options the Company has determined to be reasonably certain and exclude payments to landlords for real estate taxes and common area maintenance. Following is a summary of future minimum lease payments for all noncancelable operating leases and financing leases as of October 1, 2021: (in thousands) Operating Leases Financing Leases Remainder of 2021 $ 6,212 $ 1,774 2022 24,389 7,145 2023 23,273 7,201 2024 19,211 7,396 2025 16,680 7,593 Thereafter 81,220 55,828 Total minimum lease payments including interest $ 170,985 $ 86,937 Less: Amounts representing interest 26,708 14,660 Present value of minimum lease principal payments 144,277 72,277 Less: Current portion of lease liabilities 20,650 6,009 Noncurrent portion of lease liabilities $ 123,627 $ 66,268 Following is a summary of future minimum lease payments for all noncancelable operating leases and financing leases as of December 31, 2020: (in thousands) Operating Leases Financing Leases 2021 $ 24,056 $ 7,079 2022 20,970 7,145 2023 18,125 7,201 2024 15,330 7,396 2025 13,747 7,593 Thereafter 77,353 55,827 Total minimum lease payments including interest $ 169,581 $ 92,241 Less: Amounts representing interest 29,892 16,397 Present value of minimum lease principal payments 139,689 75,844 Less: Current portion of lease liabilities 19,766 5,860 Noncurrent portion of lease liabilities $ 119,923 $ 69,984 Following is a summary of the Company’s leases within the condensed consolidated statements of cash flows: First Nine Months (in thousands) 2021 2020 Cash flows from operating activities impact: Operating leases $ 21,112 $ 14,134 Interest payments on financing lease obligations 1,738 1,120 Total cash flows from operating activities impact $ 22,850 $ 15,254 Cash flows from financing activities impact: Principal payments on financing lease obligations $ 3,567 $ 4,428 Total cash flows from financing activities impact $ 3,567 $ 4,428 As of October 1, 2021, the Company had one operating lease commitment that had not yet commenced. This lease commitment has a lease term of approximately three years and is expected to commence during the fourth quarter of 2021. The additional lease liability associated with this lease commitment is expected to be $2.0 million. |
Leases | Leases Following is a summary of the weighted average remaining lease term and the weighted average discount rate for the Company’s leases: October 1, 2021 December 31, 2020 Weighted average remaining lease term: Operating leases 8.6 years 9.4 years Financing leases 12.7 years 13.4 years Weighted average discount rate: Operating leases 3.7 % 4.0 % Financing leases 3.1 % 3.2 % Following is a summary of the Company’s leases within the condensed consolidated statements of operations: Third Quarter First Nine Months (in thousands) 2021 2020 2021 2020 Operating lease costs $ 6,828 $ 6,243 $ 19,647 $ 18,392 Short-term and variable leases 4,561 3,982 12,932 10,980 Depreciation expense from financing leases 1,414 1,415 4,242 3,264 Interest expense on financing lease obligations 575 613 1,738 1,120 Total lease cost $ 13,378 $ 12,253 $ 38,559 $ 33,756 The future minimum lease payments related to the Company’s leases include renewal options the Company has determined to be reasonably certain and exclude payments to landlords for real estate taxes and common area maintenance. Following is a summary of future minimum lease payments for all noncancelable operating leases and financing leases as of October 1, 2021: (in thousands) Operating Leases Financing Leases Remainder of 2021 $ 6,212 $ 1,774 2022 24,389 7,145 2023 23,273 7,201 2024 19,211 7,396 2025 16,680 7,593 Thereafter 81,220 55,828 Total minimum lease payments including interest $ 170,985 $ 86,937 Less: Amounts representing interest 26,708 14,660 Present value of minimum lease principal payments 144,277 72,277 Less: Current portion of lease liabilities 20,650 6,009 Noncurrent portion of lease liabilities $ 123,627 $ 66,268 Following is a summary of future minimum lease payments for all noncancelable operating leases and financing leases as of December 31, 2020: (in thousands) Operating Leases Financing Leases 2021 $ 24,056 $ 7,079 2022 20,970 7,145 2023 18,125 7,201 2024 15,330 7,396 2025 13,747 7,593 Thereafter 77,353 55,827 Total minimum lease payments including interest $ 169,581 $ 92,241 Less: Amounts representing interest 29,892 16,397 Present value of minimum lease principal payments 139,689 75,844 Less: Current portion of lease liabilities 19,766 5,860 Noncurrent portion of lease liabilities $ 119,923 $ 69,984 Following is a summary of the Company’s leases within the condensed consolidated statements of cash flows: First Nine Months (in thousands) 2021 2020 Cash flows from operating activities impact: Operating leases $ 21,112 $ 14,134 Interest payments on financing lease obligations 1,738 1,120 Total cash flows from operating activities impact $ 22,850 $ 15,254 Cash flows from financing activities impact: Principal payments on financing lease obligations $ 3,567 $ 4,428 Total cash flows from financing activities impact $ 3,567 $ 4,428 As of October 1, 2021, the Company had one operating lease commitment that had not yet commenced. This lease commitment has a lease term of approximately three years and is expected to commence during the fourth quarter of 2021. The additional lease liability associated with this lease commitment is expected to be $2.0 million. |
Distribution Agreements, Net
Distribution Agreements, Net | 9 Months Ended |
Oct. 01, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Distribution Agreements, Net | Distribution Agreements, Net Distribution agreements, net, which are amortized on a straight-line basis and have an estimated useful life of 10 to 40 years, consisted of the following: (in thousands) October 1, 2021 December 31, 2020 Distribution agreements at cost $ 952,547 $ 952,533 Less: Accumulated amortization 117,144 98,780 Distribution agreements, net $ 835,403 $ 853,753 Customer lists, net, which are amortized on a straight-line basis and have an estimated useful life of five (in thousands) October 1, 2021 December 31, 2020 Customer lists at cost $ 25,288 $ 25,288 Less: Accumulated amortization 13,863 12,484 Customer lists, net $ 11,425 $ 12,804 |
Customer Lists, Net
Customer Lists, Net | 9 Months Ended |
Oct. 01, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Customer Lists, Net | Distribution Agreements, Net Distribution agreements, net, which are amortized on a straight-line basis and have an estimated useful life of 10 to 40 years, consisted of the following: (in thousands) October 1, 2021 December 31, 2020 Distribution agreements at cost $ 952,547 $ 952,533 Less: Accumulated amortization 117,144 98,780 Distribution agreements, net $ 835,403 $ 853,753 Customer lists, net, which are amortized on a straight-line basis and have an estimated useful life of five (in thousands) October 1, 2021 December 31, 2020 Customer lists at cost $ 25,288 $ 25,288 Less: Accumulated amortization 13,863 12,484 Customer lists, net $ 11,425 $ 12,804 |
Other Accrued Liabilities
Other Accrued Liabilities | 9 Months Ended |
Oct. 01, 2021 | |
Payables and Accruals [Abstract] | |
Other Accrued Liabilities | Other Accrued Liabilities Other accrued liabilities consisted of the following: (in thousands) October 1, 2021 December 31, 2020 Accrued insurance costs $ 51,401 $ 48,318 Current portion of acquisition related contingent consideration 47,212 36,020 Accrued marketing costs 34,559 38,539 Employee and retiree benefit plan accruals 33,707 31,653 Accrued taxes (other than income taxes) 7,662 6,178 Current deferred proceeds from related parties 3,064 3,085 Current portion of deferred payroll taxes under CARES Act — 18,706 All other accrued expenses 36,496 22,642 Total other accrued liabilities $ 214,101 $ 205,141 The Company has taken advantage of certain provisions of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), which allow an employer to defer the deposit and payment of the employer’s portion of social security taxes that would otherwise have been due on or after March 27, 2020 and before January 1, 2021. The law permits an employer to deposit half of these deferred payments by December 31, 2021 and the other half by December 31, 2022. During the third quarter of 2021, the Company repaid the portion of the deferred payroll taxes classified as current as of December 31, 2020. The Company intends to |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Oct. 01, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company is subject to the risk of increased costs arising from adverse changes in certain commodity prices. In the normal course of business, the Company manages these risks through a variety of strategies, including the use of commodity derivative instruments. The Company does not use commodity derivative instruments for trading or speculative purposes. These commodity derivative instruments are not designated as hedging instruments under GAAP and are used as “economic hedges” to manage certain commodity price risk. The Company uses several different financial institutions for commodity derivative instruments to minimize the concentration of credit risk. While the Company would be exposed to credit loss in the event of nonperformance by these counterparties, the Company does not anticipate nonperformance by these counterparties. Commodity derivative instruments held by the Company are marked to market on a monthly basis and are recognized in earnings consistent with the expense classification of the underlying hedged item. The Company generally pays a fee for these commodity derivative instruments, which is amortized over the corresponding period of each commodity derivative instrument. Settlements of commodity derivative instruments are included in cash flows from operating activities in the condensed consolidated statements of cash flows. The following table summarizes pre-tax changes in the fair values of the Company’s commodity derivative instruments and the classification of such changes in the condensed consolidated statements of operations: Third Quarter First Nine Months (in thousands) 2021 2020 2021 2020 Cost of sales $ 3,794 $ 1,194 $ 6,210 $ 924 Selling, delivery and administrative expenses 426 575 1,491 (949) Total gain (loss) $ 4,220 $ 1,769 $ 7,701 $ (25) All commodity derivative instruments are recorded at fair value as either assets or liabilities in the condensed consolidated balance sheets. The Company has master agreements with the counterparties to its commodity derivative instruments that provide for net settlement of derivative transactions. Accordingly, the net amounts of derivative assets are recognized in either prepaid expenses and other current assets or other assets in the condensed consolidated balance sheets and the net amounts of derivative liabilities are recognized in either other accrued liabilities or other liabilities in the condensed consolidated balance sheets. The following table summarizes the fair values of the Company’s commodity derivative instruments and the classification of such instruments in the condensed consolidated balance sheets: (in thousands) October 1, 2021 December 31, 2020 Prepaid expenses and other current assets $ 8,807 $ 2,417 Other assets 1,367 56 Total assets $ 10,174 $ 2,473 The following table summarizes the Company’s gross commodity derivative instrument assets and gross commodity derivative instrument liabilities in the condensed consolidated balance sheets: (in thousands) October 1, 2021 December 31, 2020 Gross commodity derivative instrument assets $ 10,643 $ 2,473 Gross commodity derivative instrument liabilities 469 — The following table summarizes the Company’s outstanding commodity derivative instruments: (in thousands) October 1, 2021 December 31, 2020 Notional amount of outstanding commodity derivative instruments $ 65,541 $ 23,030 Latest maturity date of outstanding commodity derivative instruments December 2022 December 2021 |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 9 Months Ended |
Oct. 01, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Financial Instruments | Fair Values of Financial Instruments GAAP requires assets and liabilities carried at fair value to be classified and disclosed in one of the following categories: • Level 1: Quoted market prices in active markets for identical assets or liabilities. • Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. • Level 3: Unobservable inputs that are not corroborated by market data. The below methods and assumptions were used by the Company in estimating the fair values of its financial instruments. There were no transfers of assets or liabilities between levels in any period presented. Financial Instrument Fair Value Methods and Assumptions Deferred compensation plan assets and liabilities Level 1 The fair value of the Company’s nonqualified deferred compensation plan for certain executives and other highly compensated employees is based on the fair values of associated assets and liabilities, which are held in mutual funds and are based on the quoted market values of the securities held within the mutual funds. Commodity derivative instruments Level 2 The fair values of the Company’s commodity derivative instruments are based on current settlement values at each balance sheet date, which represent the estimated amounts the Company would have received or paid upon termination of these instruments. The Company’s credit risk related to the commodity derivative instruments is managed by requiring high standards for its counterparties and periodic settlements. The Company considers nonperformance risk in determining the fair values of commodity derivative instruments. Long-term debt Level 2 The carrying amounts of the Company’s variable rate debt approximate the fair values due to variable interest rates with short reset periods. The fair values of the Company’s fixed rate debt are based on estimated current market prices. Acquisition related contingent consideration Level 3 The fair value of the Company’s acquisition related contingent consideration is based on internal forecasts and the weighted average cost of capital (“WACC”) derived from market data. The following tables summarize the carrying amounts and fair values by level of the Company’s deferred compensation plan assets and liabilities, commodity derivative instruments, long-term debt and acquisition related contingent consideration: October 1, 2021 (in thousands) Carrying Total Fair Value Fair Value Fair Value Assets: Deferred compensation plan assets $ 57,005 $ 57,005 $ 57,005 $ — $ — Commodity derivative instruments 10,174 10,174 — 10,174 — Liabilities: Deferred compensation plan liabilities 57,005 57,005 57,005 — — Long-term debt 793,177 857,200 — 857,200 — Acquisition related contingent consideration 496,659 496,659 — — 496,659 December 31, 2020 (in thousands) Carrying Total Fair Value Fair Value Fair Value Assets: Deferred compensation plan assets $ 51,742 $ 51,742 $ 51,742 $ — $ — Commodity derivative instruments 2,473 2,473 — 2,473 — Liabilities: Deferred compensation plan liabilities 51,742 51,742 51,742 — — Long-term debt 940,465 1,015,700 — 1,015,700 — Acquisition related contingent consideration 434,694 434,694 — — 434,694 The acquisition related contingent consideration was valued using a probability weighted discounted cash flow model based on internal forecasts and the WACC derived from market data, which are considered Level 3 inputs. Each reporting period, the Company adjusts its acquisition related contingent consideration liability related to the distribution territories subject to sub- bottling fees to fair value by discounting future expected sub-bottling payments required under the CBA using the Company’s estimated WACC. The future expected sub-bottling payments extend through the life of the applicable distribution assets acquired from CCR, which is generally 40 years. As a result, the fair value of the acquisition related contingent consideration liability is impacted by the Company’s WACC, management’s estimate of the amounts that will be paid in the future under the CBA, and current sub-bottling payments (all Level 3 inputs). Changes in any of these Level 3 inputs, particularly the underlying risk-free interest rate used to estimate the Company’s WACC, could result in material changes to the fair value of the acquisition related contingent consideration liability and could materially impact the amount of non-cash expense (or income) recorded each reporting period. The acquisition related contingent consideration liability is the Company’s only Level 3 asset or liability. A summary of the Level 3 activity is as follows: Third Quarter First Nine Months (in thousands) 2021 2020 2021 2020 Beginning balance - Level 3 liability $ 473,055 $ 441,113 $ 434,694 $ 446,684 Payments of acquisition related contingent consideration (8,720) (11,468) (28,640) (31,999) Reclassification to current payables (1,600) (800) (300) (1,100) Increase in fair value 33,924 19,808 90,905 35,068 Ending balance - Level 3 liability $ 496,659 $ 448,653 $ 496,659 $ 448,653 As of October 1, 2021 and September 27, 2020, discount rates of 7.6% and 7.4%, respectively, were utilized in the valuation of the Company’s acquisition related contingent consideration liability. The increase in the fair value of the acquisition related contingent consideration liability in the first nine months of 2021 was primarily driven by higher projections of future cash flows in the distribution territories subject to sub-bottling fees. This fair value adjustment was recorded in other expense, net in the condensed consolidated statement of operations for the first nine months of 2021. The Company anticipates that the amount it could pay annually under the acquisition related contingent consideration arrangements for the distribution territories subject to sub-bottling fees will be in the range of $32 million to $59 million. |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 01, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective income tax rate was 26.8% for the first nine months of 2021 and 25.6% for the first nine months of 2020. The Company’s income tax expense was $62.3 million for the first nine months of 2021 and $38.9 million for the first nine months of 2020. The increase in income tax expense was primarily attributable to improved financial results during the first nine months of 2021 compared to the first nine months of 2020. The Company had uncertain tax positions, including accrued interest, of $2.8 million on October 1, 2021 and $2.6 million on December 31, 2020, all of which would affect the Company’s effective income tax rate if recognized. While it is expected the amount of uncertain tax positions may change in the next 12 months, the Company does not expect such change would have a significant impact on the condensed consolidated financial statements. Prior tax years beginning in year 2007 remain open to examination by the Internal Revenue Service, and various tax years beginning in year 1998 remain open to examination by certain state taxing authorities. |
Pension and Postretirement Bene
Pension and Postretirement Benefit Obligations | 9 Months Ended |
Oct. 01, 2021 | |
Retirement Benefits [Abstract] | |
Pension and Postretirement Benefit Obligations | Pension and Postretirement Benefit Obligations Pension Plans There are two Company-sponsored pension plans. The primary Company-sponsored pension plan was frozen as of June 30, 2006 and no benefits accrued to participants after that date. The second Company-sponsored pension plan (the “Bargaining Plan”) is for certain employees under collective bargaining agreements. Benefits under the Bargaining Plan are determined in accordance with negotiated formulas for the respective participants. Contributions to the plans are based on actuarially determined amounts and are limited to the amounts currently deductible for income tax purposes. The components of net periodic pension cost were as follows: Third Quarter First Nine Months (in thousands) 2021 2020 2021 2020 Service cost $ 1,863 $ 1,659 $ 5,589 $ 4,976 Interest cost 2,452 2,760 7,360 8,280 Expected return on plan assets (3,250) (3,382) (9,748) (10,148) Recognized net actuarial loss 1,219 1,189 3,654 3,568 Amortization of prior service cost 1 5 2 14 Net periodic pension cost $ 2,285 $ 2,231 $ 6,857 $ 6,690 The Company contributed $6.8 million to the two Company-sponsored pension plans during the first nine months of 2021 and does not anticipate making additional contributions during the fourth quarter of 2021. Postretirement Benefits The Company provides postretirement benefits for employees meeting specified criteria . The Company recognizes the cost of postretirement benefits, which consist principally of medical benefits, during employees’ periods of active service. The Company does not prefund these benefits and has the right to modify or terminate certain of these benefits in the future. The components of net periodic postretirement benefit cost were as follows: Third Quarter First Nine Months (in thousands) 2021 2020 2021 2020 Service cost $ 403 $ 376 $ 1,209 $ 1,128 Interest cost 447 504 1,342 1,511 Recognized net actuarial loss 186 88 557 263 Net periodic postretirement benefit cost $ 1,036 $ 968 $ 3,108 $ 2,902 |
Other Liabilities
Other Liabilities | 9 Months Ended |
Oct. 01, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other Liabilities Other liabilities consisted of the following: (in thousands) October 1, 2021 December 31, 2020 Noncurrent portion of acquisition related contingent consideration $ 449,447 $ 398,674 Accruals for executive benefit plans 142,853 144,101 Noncurrent deferred proceeds from related parties 107,070 109,361 Noncurrent portion of deferred payroll taxes under CARES Act 18,739 18,706 Other 8,183 8,438 Total other liabilities $ 726,292 $ 679,280 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Oct. 01, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Following is a summary of the Company’s long-term debt: (in thousands) Maturity Interest Interest Public/ October 1, December 31, 2016 Term Loan Facility (1) 6/7/2021 Variable Varies Nonpublic $ — $ 217,500 Senior notes 2/27/2023 3.28% Semi-annually Nonpublic 125,000 125,000 2018 Revolving Credit Facility 6/8/2023 Variable Varies Nonpublic — — 2021 Term Loan Facility 7/9/2024 Variable Varies Nonpublic 70,000 — Senior bonds (2) 11/25/2025 3.80% Semi-annually Public 350,000 350,000 2021 Revolving Credit Facility 7/9/2026 Variable Varies Nonpublic — — Senior notes 10/10/2026 3.93% Quarterly Nonpublic 100,000 100,000 Senior notes 3/21/2030 3.96% Quarterly Nonpublic 150,000 150,000 Unamortized discount on senior bonds (2) 11/25/2025 (36) (43) Debt issuance costs (1,787) (1,992) Total long-term debt $ 793,177 $ 940,465 (1) As of December 31, 2020, the 2016 Term Loan Facility (as defined below) balance was classified as long term as the Company intended to refinance outstanding principal payments due in the next 12 months using the 2018 Revolving Credit Facility (as defined below), which was classified as long-term debt, and the Company was not restricted by any subjective acceleration clause within the agreement for the 2018 Revolving Credit Facility. (2) The senior bonds due in 2025 were issued at 99.975% of par. The Company mitigates its financing risk by using multiple financial institutions and only entering into credit arrangements with institutions with investment grade credit ratings. The Company monitors counterparty credit ratings on an ongoing basis. On June 7, 2021, the Company used a combination of cash on hand and borrowings under its previous revolving credit facility (the “2018 Revolving Credit Facility”) to repay the remaining balance of its previous term loan facility (the “2016 Term Loan Facility”) that matured on that date. On July 9, 2021, the Company entered into a credit agreement, providing for a five-year unsecured revolving credit facility with an aggregate maximum borrowing capacity of $500 million (the “2021 Revolving Credit Facility”), maturing on July 9, 2026. Borrowings under the 2021 Revolving Credit Facility bear interest at a base rate or adjusted LIBOR, at the Company’s option, plus an applicable rate, depending on the rating for the Company’s long-term senior unsecured, non-credit-enhanced debt (“Debt Rating”). In addition, the Company must pay a facility fee on the lenders’ aggregate commitments under the 2021 Revolving Credit Facility ranging from 0.060% to 0.175% per annum, depending on the Company’s Debt Rating. The Company currently believes all banks participating in the 2021 Revolving Credit Facility have the ability to and will meet any funding requests from the Company. The 2021 Revolving Credit Facility replaced the 2018 Revolving Credit Facility, which had a maturity date of June 8, 2023. Also on July 9, 2021, the Company entered into a term loan agreement, providing for a three-year senior unsecured term loan facility in the aggregate principal amount of $70 million (the “2021 Term Loan Facility”), maturing on July 9, 2024. Borrowings under the 2021 Term Loan Facility bear interest at a base rate or adjusted LIBOR, at the Company’s option, plus an applicable rate, depending on the Company’s Debt Rating. The entire amount of the 2021 Term Loan Facility was fully drawn on July 9, 2021. The Company used approximately $55 million of the proceeds of the 2021 Term Loan Facility to repay outstanding indebtedness under the 2018 Revolving Credit Facility and used the remaining proceeds for general corporate purposes. Subsequent to the end of the third quarter of 2021, the Company notified the lender of its intent to repay the $70 million of borrowings outstanding under the 2021 Term Loan Facility during the fourth quarter of 2021. The indenture under which the Company’s senior bonds were issued does not include financial covenants but does limit the incurrence of certain liens and encumbrances as well as indebtedness by the Company’s subsidiaries in excess of certain amounts. The agreements under which the Company’s nonpublic debt was issued include two financial covenants: a consolidated cash flow/fixed charges ratio and a consolidated funded indebtedness/cash flow ratio, each as defined in the respective agreement. The Company was in compliance with these covenants as of October 1, 2021. These covenants do not currently, and the Company does not anticipate they will, restrict its liquidity or capital resources. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 01, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Manufacturing Cooperatives The Company is obligated to purchase at least 80% of its requirements of plastic bottles for certain designated territories from Southeastern. The Company is also obligated to purchase 17.5 million cases of finished product from SAC on an annual basis through June 2024. The Company purchased 21.0 million cases and 21.9 million cases of finished product from SAC in the first nine months of 2021 and the first nine months of 2020, respectively. The following table summarizes the Company’s purchases from these manufacturing cooperatives: Third Quarter First Nine Months (in thousands) 2021 2020 2021 2020 Purchases from Southeastern $ 31,417 $ 31,196 $ 92,990 $ 94,835 Purchases from SAC 41,867 37,006 125,677 119,225 Total purchases from manufacturing cooperatives $ 73,284 $ 68,202 $ 218,667 $ 214,060 The Company guarantees a portion of SAC’s debt, which expires at various dates through 2024. The amount guaranteed was $14.7 million on both October 1, 2021 and December 31, 2020. In the event SAC fails to fulfill its commitments under the related debt, the Company would be responsible for payment to the lenders up to the level of the guarantee. The Company does not anticipate SAC will fail to fulfill its commitments related to the debt. The Company further believes SAC has sufficient assets, including production equipment, facilities and working capital, and the ability to adjust selling prices of its products to adequately mitigate the risk of material loss from the Company’s guarantee. The Company holds no assets as collateral against the SAC guarantee, the fair value of which is immaterial to the condensed consolidated financial statements. The Company monitors its investment in SAC and would be required to write down its investment if an impairment, other than a temporary impairment, was identified. No impairment of the Company’s investment in SAC was identified as of October 1, 2021, and there was no impairment identified in 2020. Other Commitments and Contingencies The Company has standby letters of credit, primarily related to its property and casualty insurance programs. These letters of credit totaled $37.6 million on both October 1, 2021 and December 31, 2020. The Company participates in long-term marketing contractual arrangements with certain prestige properties, athletic venues and other locations. As of October 1, 2021, the future payments related to these contractual arrangements, which expire at various dates through 2033, amounted to $140.6 million. The Company is involved in various claims and legal proceedings which have arisen in the ordinary course of its business. Although it is difficult to predict the ultimate outcome of these claims and legal proceedings, management believes the ultimate disposition of these matters will not have a material adverse effect on the financial condition, results of operations or cash flows of the Company. No material amount of loss in excess of recorded amounts is believed to be reasonably possible as a result of these claims and legal proceedings. The Company is subject to audits by tax authorities in jurisdictions where it conducts business. These audits may result in assessments that are subsequently resolved with the authorities or potentially through the courts. Management believes the Company has adequately provided for any assessments likely to result from these audits; however, final assessments, if any, could be different than the amounts recorded in the condensed consolidated financial statements. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Oct. 01, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Accumulated other comprehensive income (loss) (“AOCI(L)”) is comprised of adjustments to the Company’s pension and postretirement medical benefit plans and the foreign currency translation for a subsidiary of the Company that performs data analysis and provides consulting services outside the United States. Following is a summary of AOCI(L) for the third quarter of 2021 and the third quarter of 2020: (in thousands) July 2, 2021 Pre-tax Activity Tax Effect October 1, 2021 Net pension activity: Actuarial loss $ (92,018) $ 1,219 $ (303) $ (91,102) Prior service credits 9 1 — 10 Net postretirement benefits activity: Actuarial loss (4,049) 186 (46) (3,909) Prior service costs (624) — — (624) Foreign currency translation adjustment 5 (8) 2 (1) Reclassification of stranded tax effects (19,720) — — (19,720) Total AOCI(L) $ (116,397) $ 1,398 $ (347) $ (115,346) (in thousands) June 28, 2020 Pre-tax Activity Tax Effect September 27, 2020 Net pension activity: Actuarial loss $ (91,381) $ 1,189 $ (293) $ (90,485) Prior service credits — 5 (1) 4 Net postretirement benefits activity: Actuarial loss (1,059) 88 (22) (993) Prior service costs (624) — — (624) Interest rate swap (1) (1,283) 402 (99) (980) Foreign currency translation adjustment (14) 15 (4) (3) Reclassification of stranded tax effects (19,720) — — (19,720) Total AOCI(L) $ (114,081) $ 1,699 $ (419) $ (112,801) (1) In 2019, the Company entered into a $100 million fixed rate swap to hedge a portion of the interest rate risk on the 2016 Term Loan Facility, both of which matured on June 7, 2021. This interest rate swap was designated as a cash flow hedging instrument and changes in its fair value were not material to the condensed consolidated balance sheets. Following is a summary of AOCI(L) for the first nine months of 2021 and the first nine months of 2020: (in thousands) December 31, 2020 Pre-tax Activity Tax Effect October 1, 2021 Net pension activity: Actuarial loss $ (93,847) $ 3,654 $ (909) $ (91,102) Prior service credits 8 2 — 10 Net postretirement benefits activity: Actuarial loss (4,328) 557 (138) (3,909) Prior service costs (624) — — (624) Interest rate swap (556) 739 (183) — Foreign currency translation adjustment 14 (21) 6 (1) Reclassification of stranded tax effects (19,720) — — (19,720) Total AOCI(L) $ (119,053) $ 4,931 $ (1,224) $ (115,346) (in thousands) December 29, 2019 Pre-tax Activity Tax Effect September 27, 2020 Net pension activity: Actuarial loss $ (93,174) $ 3,568 $ (879) $ (90,485) Prior service credits (costs) (7) 14 (3) 4 Net postretirement benefits activity: Actuarial loss (1,191) 263 (65) (993) Prior service costs (624) — — (624) Interest rate swap (270) (942) 232 (980) Foreign currency translation adjustment (16) 18 (5) (3) Reclassification of stranded tax effects (19,720) — — (19,720) Total AOCI(L) $ (115,002) $ 2,921 $ (720) $ (112,801) Following is a summary of the impact of AOCI(L) on the condensed consolidated statements of operations: Third Quarter 2021 (in thousands) Net Pension Activity Net Postretirement Benefits Activity Foreign Currency Translation Adjustment Total Cost of sales $ 364 $ 97 $ — $ 461 Selling, delivery and administrative expenses 856 89 (8) 937 Subtotal pre-tax 1,220 186 (8) 1,398 Income tax expense 303 46 (2) 347 Total after tax effect $ 917 $ 140 $ (6) $ 1,051 Third Quarter 2020 (in thousands) Net Pension Activity Net Postretirement Benefits Activity Interest Rate Swap Foreign Currency Translation Adjustment Total Cost of sales $ 363 $ 55 $ — $ — $ 418 Selling, delivery and administrative expenses 831 33 402 15 1,281 Subtotal pre-tax 1,194 88 402 15 1,699 Income tax expense 294 22 99 4 419 Total after tax effect $ 900 $ 66 $ 303 $ 11 $ 1,280 First Nine Months 2021 (in thousands) Net Pension Activity Net Postretirement Benefits Activity Interest Rate Swap Foreign Currency Translation Adjustment Total Cost of sales $ 1,068 $ 304 $ — $ — $ 1,372 Selling, delivery and administrative expenses 2,588 253 739 (21) 3,559 Subtotal pre-tax 3,656 557 739 (21) 4,931 Income tax expense 909 138 183 (6) 1,224 Total after tax effect $ 2,747 $ 419 $ 556 $ (15) $ 3,707 First Nine Months 2020 (in thousands) Net Pension Activity Net Postretirement Benefits Activity Interest Rate Swap Foreign Currency Translation Adjustment Total Cost of sales $ 1,057 $ 160 $ — $ — $ 1,217 Selling, delivery and administrative expenses 2,525 103 (942) 18 1,704 Subtotal pre-tax 3,582 263 (942) 18 2,921 Income tax expense 882 65 (232) 5 720 Total after tax effect $ 2,700 $ 198 $ (710) $ 13 $ 2,201 |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 9 Months Ended |
Oct. 01, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures of Cash Flow Information | Supplemental Disclosures of Cash Flow Information Changes in current assets and current liabilities affecting cash flows were as follows: First Nine Months (in thousands) 2021 2020 Accounts receivable, trade $ (56,766) $ (19,850) Allowance for doubtful accounts (5,010) 11,268 Accounts receivable from The Coca‑Cola Company (9,120) 7,895 Accounts receivable, other 7,846 (1,475) Inventories (14,738) 18,153 Prepaid expenses and other current assets (10,006) (368) Accounts payable, trade 62,775 40,937 Accounts payable to The Coca‑Cola Company 46,520 26,957 Other accrued liabilities 27,699 (14,578) Accrued compensation 9,009 (13,035) Accrued interest payable 2,337 1,747 Change in current assets less current liabilities $ 60,546 $ 57,651 |
Critical Accounting Policies _2
Critical Accounting Policies and Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Oct. 01, 2021 | |
Accounting Policies [Abstract] | |
Critical Accounting Policies | Critical Accounting Policies In the ordinary course of business, the Company has made a number of estimates and assumptions relating to the reporting of its results of operations and financial position in the preparation of its condensed consolidated financial statements in conformity with GAAP. Actual results could differ significantly from those estimates under different assumptions and conditions. The Company included in its Annual Report on Form 10-K for 2020 under the caption “Discussion of Critical Accounting Policies and Estimates and Recent Accounting Pronouncements” in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations,” a discussion of the Company’s most critical accounting policies, which are those the Company believes to be the most important to the portrayal of its financial condition and results of operations and require management’s most difficult, subjective and complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Any changes in critical accounting policies and estimates are discussed with the Audit Committee of the Company’s Board of Directors during the quarter in which a change is contemplated and prior to making such change. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2019‑12, “Simplifying the Accounting for Income Taxes,” which simplifies the accounting for income taxes by removing certain exceptions to the general principles in income tax accounting and improves consistent application of and simplifies GAAP for |
Revenue Recognition | The Company’s sales are divided into two main categories: (i) bottle/can sales and (ii) other sales. Bottle/can sales include products packaged primarily in plastic bottles and aluminum cans. Bottle/can net pricing is based on the invoice price charged to customers reduced by any promotional allowances. Bottle/can net pricing per unit is impacted by the price charged per package, the sales volume generated for each package and the channels in which those packages are sold. Other sales include sales to other Coca‑Cola bottlers, post-mix products, transportation revenue and equipment maintenance revenue. The Company’s contracts are derived from customer orders, including customer sales incentives, generated through an order processing and replenishment model. Generally, the Company’s service contracts and contracts related to the delivery of specifically identifiable products have a single performance obligation. Revenues do not include sales or other taxes collected from customers. The Company has defined its performance obligations for its contracts as either at a point in time or over time. Bottle/can sales, sales to other Coca‑Cola bottlers and post-mix sales are recognized when control transfers to a customer, which is generally upon delivery and is considered a single point in time (“point in time”). Point in time sales accounted for approximately 97% of the Company’s net sales in both the first nine months of 2021 and the first nine months of 2020. Other sales, which include revenue for service fees related to the repair of cold drink equipment and delivery fees for freight hauling and brokerage services, are recognized over time (“over time”). Revenues related to cold drink equipment repair are recognized as the respective services are completed using a cost-to-cost input method. Repair services are generally completed in less than one day but can extend up to one month. Revenues related to freight hauling and brokerage services are recognized as the delivery occurs using a miles driven output method. Generally, delivery occurs and freight charges are recognized in the same day. Over time sales orders open at the end of a financial period are not material to the condensed consolidated financial statements. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Oct. 01, 2021 | |
Related Party Transactions [Abstract] | |
Summary of Significant Transactions between Company and The Coca-Cola Company | The following table summarizes the significant cash transactions between the Company and The Coca‑Cola Company: Third Quarter First Nine Months (in thousands) 2021 2020 2021 2020 Payments made by the Company to The Coca-Cola Company (1) $ 403,889 $ 369,186 $ 1,120,042 $ 1,012,568 Payments made by The Coca-Cola Company to the Company 51,024 30,458 131,026 91,086 (1) This excludes payments by the Company to Coca-Cola Refreshments USA, Inc., a wholly owned subsidiary of The Coca‑Cola Company, as discussed in the next section. |
Summary of Liability to Estimated Fair Value of Contingent Consideration | The following table summarizes the liability recorded by the Company to reflect the estimated fair value of contingent consideration related to future sub‑bottling payments to CCR: (in thousands) October 1, 2021 December 31, 2020 Current portion of acquisition related contingent consideration $ 47,212 $ 36,020 Noncurrent portion of acquisition related contingent consideration 449,447 398,674 Total acquisition related contingent consideration $ 496,659 $ 434,694 |
Summary of Rental Payments Related to Leases | A summary of rental payments for these leases related to the third quarter and the first nine months of 2021 and 2020 is as follows: Third Quarter First Nine Months (in thousands) 2021 2020 2021 2020 Company headquarters $ 944 $ 826 $ 2,834 $ 2,478 Snyder Production Center 1,112 1,112 3,338 3,338 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Oct. 01, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue from Contracts with Customers | The following table represents a disaggregation of revenue from contracts with customers: Third Quarter First Nine Months (in thousands) 2021 2020 2021 2020 Point in time net sales: Nonalcoholic Beverages - point in time $ 1,415,643 $ 1,286,542 $ 4,029,846 $ 3,607,502 Total point in time net sales $ 1,415,643 $ 1,286,542 $ 4,029,846 $ 3,607,502 Over time net sales: Nonalcoholic Beverages - over time $ 11,328 $ 8,729 $ 32,130 $ 25,874 All Other - over time 30,461 33,213 98,399 95,344 Total over time net sales $ 41,789 $ 41,942 $ 130,529 $ 121,218 Total net sales $ 1,457,432 $ 1,328,484 $ 4,160,375 $ 3,728,720 |
Summary of Activity for Allowance for Credit Losses | A reconciliation of the activity for the allowance for credit losses is as follows: First Nine Months (in thousands) 2021 2020 Beginning balance - allowance for credit losses $ 18,070 $ 10,232 Additions charged to costs and expenses 2,619 14,238 Deductions (7,079) (2,970) Ending balance - allowance for credit losses $ 13,610 $ 21,500 |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Oct. 01, 2021 | |
Segment Reporting [Abstract] | |
Summary of Financial Information by Segment | The Company’s segment results are as follows: Third Quarter First Nine Months (in thousands) 2021 2020 2021 2020 Net sales: Nonalcoholic Beverages $ 1,426,971 $ 1,295,271 $ 4,061,976 $ 3,633,376 All Other 88,991 84,776 272,132 246,406 Eliminations (1) (58,530) (51,563) (173,733) (151,062) Consolidated net sales $ 1,457,432 $ 1,328,484 $ 4,160,375 $ 3,728,720 (1) The entire net sales elimination represents net sales from the All Other segment to the Nonalcoholic Beverages segment. Sales between these segments are recognized at either fair market value or cost depending on the nature of the transaction. Third Quarter First Nine Months (in thousands) 2021 2020 2021 2020 Income from operations: Nonalcoholic Beverages $ 144,130 $ 108,035 $ 363,544 $ 227,559 All Other (7,099) (4,191) (11,468) (7,776) Consolidated income from operations $ 137,031 $ 103,844 $ 352,076 $ 219,783 Depreciation and amortization: Nonalcoholic Beverages $ 44,313 $ 45,066 $ 126,088 $ 125,733 All Other 3,145 3,027 9,253 8,756 Consolidated depreciation and amortization $ 47,458 $ 48,093 $ 135,341 $ 134,489 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Oct. 01, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic Net Income Per Share and Diluted Net Income Per Share | The following table sets forth the computation of basic net income per share and diluted net income per share under the two-class method: Third Quarter First Nine Months (in thousands, except per share data) 2021 2020 2021 2020 Numerator for basic and diluted net income per Common Stock and Class B Common Stock share: Net income attributable to Coca‑Cola Consolidated, Inc. $ 68,930 $ 51,884 $ 170,473 $ 106,115 Less dividends: Common Stock 1,785 1,785 5,356 5,356 Class B Common Stock 558 559 1,674 1,674 Total undistributed earnings $ 66,587 $ 49,540 $ 163,443 $ 99,085 Common Stock undistributed earnings – basic $ 50,731 $ 37,743 $ 124,522 $ 75,490 Class B Common Stock undistributed earnings – basic 15,856 11,797 38,921 23,595 Total undistributed earnings – basic $ 66,587 $ 49,540 $ 163,443 $ 99,085 Common Stock undistributed earnings – diluted $ 50,536 $ 37,515 $ 123,993 $ 75,034 Class B Common Stock undistributed earnings – diluted 16,051 12,025 39,450 24,051 Total undistributed earnings – diluted $ 66,587 $ 49,540 $ 163,443 $ 99,085 Numerator for basic net income per Common Stock share: Dividends on Common Stock $ 1,785 $ 1,785 $ 5,356 $ 5,356 Common Stock undistributed earnings – basic 50,731 37,743 124,522 75,490 Numerator for basic net income per Common Stock share $ 52,516 $ 39,528 $ 129,878 $ 80,846 Numerator for basic net income per Class B Common Stock share: Dividends on Class B Common Stock $ 558 $ 559 $ 1,674 $ 1,674 Class B Common Stock undistributed earnings – basic 15,856 11,797 38,921 23,595 Numerator for basic net income per Class B Common Stock share $ 16,414 $ 12,356 $ 40,595 $ 25,269 Numerator for diluted net income per Common Stock share: Dividends on Common Stock $ 1,785 $ 1,785 $ 5,356 $ 5,356 Dividends on Class B Common Stock assumed converted to Common Stock 558 559 1,674 1,674 Common Stock undistributed earnings – diluted 66,587 49,540 163,443 99,085 Numerator for diluted net income per Common Stock share $ 68,930 $ 51,884 $ 170,473 $ 106,115 Numerator for diluted net income per Class B Common Stock share: Dividends on Class B Common Stock $ 558 $ 559 $ 1,674 $ 1,674 Class B Common Stock undistributed earnings – diluted 16,051 12,025 39,450 24,051 Numerator for diluted net income per Class B Common Stock share $ 16,609 $ 12,584 $ 41,124 $ 25,725 Third Quarter First Nine Months (in thousands, except per share data) 2021 2020 2021 2020 Denominator for basic net income per Common Stock and Class B Common Stock share: Common Stock weighted average shares outstanding – basic 7,141 7,141 7,141 7,141 Class B Common Stock weighted average shares outstanding – basic 2,232 2,232 2,232 2,232 Denominator for diluted net income per Common Stock and Class B Common Stock share: Common Stock weighted average shares outstanding – diluted (assumes conversion of Class B Common Stock to Common Stock) 9,409 9,430 9,413 9,430 Class B Common Stock weighted average shares outstanding – diluted 2,268 2,289 2,272 2,289 Basic net income per share: Common Stock $ 7.36 $ 5.53 $ 18.19 $ 11.32 Class B Common Stock $ 7.36 $ 5.53 $ 18.19 $ 11.32 Diluted net income per share: Common Stock $ 7.32 $ 5.51 $ 18.11 $ 11.25 Class B Common Stock $ 7.31 $ 5.51 $ 18.10 $ 11.24 NOTES TO TABLE (1) For purposes of the diluted net income per share computation for Common Stock, all shares of Class B Common Stock are assumed to be converted; therefore, 100% of undistributed earnings is allocated to Common Stock. (2) For purposes of the diluted net income per share computation for Class B Common Stock, weighted average shares of Class B Common Stock are assumed to be outstanding for the entire period and not converted. (3) For periods presented during which the Company has net income, the denominator for diluted net income per share for Common Stock and Class B Common Stock includes the dilutive effect of shares relative to the Long-Term Performance Equity Plan . For periods presented during which the Company has net loss, the unvested shares granted pursuant to the Long-Term Performance Equity Plan are excluded from the computation of diluted net loss per share, as the effect would have been anti-dilutive. See Note 2 for additional information on the Long-Term Performance Equity Plan . (4) The Long-Term Performance Equity Plan awards may be settled in cash and/or shares of the Company’s Class B Common Stock. Once an election has been made to settle an award in cash, the dilutive effect of shares relative to such award is prospectively removed from the denominator in the computation of diluted net income per share. (5) The Company did not have anti-dilutive shares for any periods presented. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Oct. 01, 2021 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consisted of the following: (in thousands) October 1, 2021 December 31, 2020 Finished products $ 142,715 $ 140,080 Manufacturing materials 55,296 47,081 Plastic shells, plastic pallets and other inventories 42,484 38,596 Total inventories $ 240,495 $ 225,757 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 9 Months Ended |
Oct. 01, 2021 | |
Prepaid Expense and Other Assets [Abstract] | |
Summary of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following: (in thousands) October 1, 2021 December 31, 2020 Repair parts $ 27,537 $ 26,811 Commodity hedges at fair market value 8,807 2,417 Prepaid software 6,185 6,650 Prepaid marketing 5,723 4,773 Prepaid taxes 4,411 8,428 Other prepaid expenses and other current assets 31,489 25,067 Total prepaid expenses and other current assets $ 84,152 $ 74,146 |
Assets Held for Sale (Tables)
Assets Held for Sale (Tables) | 9 Months Ended |
Oct. 01, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Assets Held for Sale | Following is a summary of the assets held for sale: (in thousands) October 1, 2021 December 31, 2020 Land $ 2,918 $ 2,559 Buildings and leasehold and land improvements 4,014 3,870 Total assets held for sale $ 6,932 $ 6,429 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Oct. 01, 2021 | |
Property, Plant and Equipment [Abstract] | |
Principal Categories and Estimated Useful Lives of Property, Plant and Equipment, Net | The principal categories and estimated useful lives of property, plant and equipment, net were as follows: (in thousands) October 1, 2021 December 31, 2020 Estimated Useful Lives Land $ 80,261 $ 81,981 Buildings 261,976 240,173 8-50 years Machinery and equipment 436,049 392,998 5-20 years Transportation equipment 454,999 445,218 3-20 years Furniture and fixtures 93,640 96,606 3-10 years Cold drink dispensing equipment 440,221 465,881 3-17 years Leasehold and land improvements 171,871 155,077 5-20 years Software for internal use 48,043 46,569 3-10 years Construction in progress 12,661 54,505 Total property, plant and equipment, at cost 1,999,721 1,979,008 Less: Accumulated depreciation and amortization 990,396 956,286 Property, plant and equipment, net $ 1,009,325 $ 1,022,722 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Oct. 01, 2021 | |
Leases [Abstract] | |
Summary of Weighted Average Remaining Lease Term and Discount Rate and Leases within Condensed Consolidated Statement of Operations | Following is a summary of the weighted average remaining lease term and the weighted average discount rate for the Company’s leases: October 1, 2021 December 31, 2020 Weighted average remaining lease term: Operating leases 8.6 years 9.4 years Financing leases 12.7 years 13.4 years Weighted average discount rate: Operating leases 3.7 % 4.0 % Financing leases 3.1 % 3.2 % Following is a summary of the Company’s leases within the condensed consolidated statements of operations: Third Quarter First Nine Months (in thousands) 2021 2020 2021 2020 Operating lease costs $ 6,828 $ 6,243 $ 19,647 $ 18,392 Short-term and variable leases 4,561 3,982 12,932 10,980 Depreciation expense from financing leases 1,414 1,415 4,242 3,264 Interest expense on financing lease obligations 575 613 1,738 1,120 Total lease cost $ 13,378 $ 12,253 $ 38,559 $ 33,756 |
Summary of Future Minimum Lease Payments for Noncancelable Operating Leases | Following is a summary of future minimum lease payments for all noncancelable operating leases and financing leases as of October 1, 2021: (in thousands) Operating Leases Financing Leases Remainder of 2021 $ 6,212 $ 1,774 2022 24,389 7,145 2023 23,273 7,201 2024 19,211 7,396 2025 16,680 7,593 Thereafter 81,220 55,828 Total minimum lease payments including interest $ 170,985 $ 86,937 Less: Amounts representing interest 26,708 14,660 Present value of minimum lease principal payments 144,277 72,277 Less: Current portion of lease liabilities 20,650 6,009 Noncurrent portion of lease liabilities $ 123,627 $ 66,268 Following is a summary of future minimum lease payments for all noncancelable operating leases and financing leases as of December 31, 2020: (in thousands) Operating Leases Financing Leases 2021 $ 24,056 $ 7,079 2022 20,970 7,145 2023 18,125 7,201 2024 15,330 7,396 2025 13,747 7,593 Thereafter 77,353 55,827 Total minimum lease payments including interest $ 169,581 $ 92,241 Less: Amounts representing interest 29,892 16,397 Present value of minimum lease principal payments 139,689 75,844 Less: Current portion of lease liabilities 19,766 5,860 Noncurrent portion of lease liabilities $ 119,923 $ 69,984 |
Summary of Future Minimum Lease Payments for Noncancelable Finance Leases | Following is a summary of future minimum lease payments for all noncancelable operating leases and financing leases as of October 1, 2021: (in thousands) Operating Leases Financing Leases Remainder of 2021 $ 6,212 $ 1,774 2022 24,389 7,145 2023 23,273 7,201 2024 19,211 7,396 2025 16,680 7,593 Thereafter 81,220 55,828 Total minimum lease payments including interest $ 170,985 $ 86,937 Less: Amounts representing interest 26,708 14,660 Present value of minimum lease principal payments 144,277 72,277 Less: Current portion of lease liabilities 20,650 6,009 Noncurrent portion of lease liabilities $ 123,627 $ 66,268 Following is a summary of future minimum lease payments for all noncancelable operating leases and financing leases as of December 31, 2020: (in thousands) Operating Leases Financing Leases 2021 $ 24,056 $ 7,079 2022 20,970 7,145 2023 18,125 7,201 2024 15,330 7,396 2025 13,747 7,593 Thereafter 77,353 55,827 Total minimum lease payments including interest $ 169,581 $ 92,241 Less: Amounts representing interest 29,892 16,397 Present value of minimum lease principal payments 139,689 75,844 Less: Current portion of lease liabilities 19,766 5,860 Noncurrent portion of lease liabilities $ 119,923 $ 69,984 |
Summary of Leases within Condensed Consolidated Statement of Cash Flow | Following is a summary of the Company’s leases within the condensed consolidated statements of cash flows: First Nine Months (in thousands) 2021 2020 Cash flows from operating activities impact: Operating leases $ 21,112 $ 14,134 Interest payments on financing lease obligations 1,738 1,120 Total cash flows from operating activities impact $ 22,850 $ 15,254 Cash flows from financing activities impact: Principal payments on financing lease obligations $ 3,567 $ 4,428 Total cash flows from financing activities impact $ 3,567 $ 4,428 |
Distribution Agreements, Net (T
Distribution Agreements, Net (Tables) | 9 Months Ended |
Oct. 01, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Distribution Agreements, Net | Distribution agreements, net, which are amortized on a straight-line basis and have an estimated useful life of 10 to 40 years, consisted of the following: (in thousands) October 1, 2021 December 31, 2020 Distribution agreements at cost $ 952,547 $ 952,533 Less: Accumulated amortization 117,144 98,780 Distribution agreements, net $ 835,403 $ 853,753 Customer lists, net, which are amortized on a straight-line basis and have an estimated useful life of five (in thousands) October 1, 2021 December 31, 2020 Customer lists at cost $ 25,288 $ 25,288 Less: Accumulated amortization 13,863 12,484 Customer lists, net $ 11,425 $ 12,804 |
Customer Lists, Net (Tables)
Customer Lists, Net (Tables) | 9 Months Ended |
Oct. 01, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Customer Lists, Net | Distribution agreements, net, which are amortized on a straight-line basis and have an estimated useful life of 10 to 40 years, consisted of the following: (in thousands) October 1, 2021 December 31, 2020 Distribution agreements at cost $ 952,547 $ 952,533 Less: Accumulated amortization 117,144 98,780 Distribution agreements, net $ 835,403 $ 853,753 Customer lists, net, which are amortized on a straight-line basis and have an estimated useful life of five (in thousands) October 1, 2021 December 31, 2020 Customer lists at cost $ 25,288 $ 25,288 Less: Accumulated amortization 13,863 12,484 Customer lists, net $ 11,425 $ 12,804 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 9 Months Ended |
Oct. 01, 2021 | |
Payables and Accruals [Abstract] | |
Summary of Other Accrued Liabilities | Other accrued liabilities consisted of the following: (in thousands) October 1, 2021 December 31, 2020 Accrued insurance costs $ 51,401 $ 48,318 Current portion of acquisition related contingent consideration 47,212 36,020 Accrued marketing costs 34,559 38,539 Employee and retiree benefit plan accruals 33,707 31,653 Accrued taxes (other than income taxes) 7,662 6,178 Current deferred proceeds from related parties 3,064 3,085 Current portion of deferred payroll taxes under CARES Act — 18,706 All other accrued expenses 36,496 22,642 Total other accrued liabilities $ 214,101 $ 205,141 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Oct. 01, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Pre-Tax Changes in Fair Value | The following table summarizes pre-tax changes in the fair values of the Company’s commodity derivative instruments and the classification of such changes in the condensed consolidated statements of operations: Third Quarter First Nine Months (in thousands) 2021 2020 2021 2020 Cost of sales $ 3,794 $ 1,194 $ 6,210 $ 924 Selling, delivery and administrative expenses 426 575 1,491 (949) Total gain (loss) $ 4,220 $ 1,769 $ 7,701 $ (25) |
Summary of Fair Values and Classification in Condensed Consolidated Balance Sheets of Derivative Instruments | The following table summarizes the fair values of the Company’s commodity derivative instruments and the classification of such instruments in the condensed consolidated balance sheets: (in thousands) October 1, 2021 December 31, 2020 Prepaid expenses and other current assets $ 8,807 $ 2,417 Other assets 1,367 56 Total assets $ 10,174 $ 2,473 |
Summary of Gross Derivative Assets and Gross Commodity Derivative Assets and Liabilities in Condensed Consolidated Balance Sheets | The following table summarizes the Company’s gross commodity derivative instrument assets and gross commodity derivative instrument liabilities in the condensed consolidated balance sheets: (in thousands) October 1, 2021 December 31, 2020 Gross commodity derivative instrument assets $ 10,643 $ 2,473 Gross commodity derivative instrument liabilities 469 — |
Summary of Outstanding Commodity Derivative Instruments | The following table summarizes the Company’s outstanding commodity derivative instruments: (in thousands) October 1, 2021 December 31, 2020 Notional amount of outstanding commodity derivative instruments $ 65,541 $ 23,030 Latest maturity date of outstanding commodity derivative instruments December 2022 December 2021 |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments (Tables) | 9 Months Ended |
Oct. 01, 2021 | |
Fair Value Disclosures [Abstract] | |
Methods and Assumptions Used in Estimating Fair Value | The below methods and assumptions were used by the Company in estimating the fair values of its financial instruments. There were no transfers of assets or liabilities between levels in any period presented. Financial Instrument Fair Value Methods and Assumptions Deferred compensation plan assets and liabilities Level 1 The fair value of the Company’s nonqualified deferred compensation plan for certain executives and other highly compensated employees is based on the fair values of associated assets and liabilities, which are held in mutual funds and are based on the quoted market values of the securities held within the mutual funds. Commodity derivative instruments Level 2 The fair values of the Company’s commodity derivative instruments are based on current settlement values at each balance sheet date, which represent the estimated amounts the Company would have received or paid upon termination of these instruments. The Company’s credit risk related to the commodity derivative instruments is managed by requiring high standards for its counterparties and periodic settlements. The Company considers nonperformance risk in determining the fair values of commodity derivative instruments. Long-term debt Level 2 The carrying amounts of the Company’s variable rate debt approximate the fair values due to variable interest rates with short reset periods. The fair values of the Company’s fixed rate debt are based on estimated current market prices. Acquisition related contingent consideration Level 3 The fair value of the Company’s acquisition related contingent consideration is based on internal forecasts and the weighted average cost of capital (“WACC”) derived from market data. |
Deferred Compensation Plan, Commodity Derivative Instruments, Debt and Acquisition Related Contingent Consideration | The following tables summarize the carrying amounts and fair values by level of the Company’s deferred compensation plan assets and liabilities, commodity derivative instruments, long-term debt and acquisition related contingent consideration: October 1, 2021 (in thousands) Carrying Total Fair Value Fair Value Fair Value Assets: Deferred compensation plan assets $ 57,005 $ 57,005 $ 57,005 $ — $ — Commodity derivative instruments 10,174 10,174 — 10,174 — Liabilities: Deferred compensation plan liabilities 57,005 57,005 57,005 — — Long-term debt 793,177 857,200 — 857,200 — Acquisition related contingent consideration 496,659 496,659 — — 496,659 December 31, 2020 (in thousands) Carrying Total Fair Value Fair Value Fair Value Assets: Deferred compensation plan assets $ 51,742 $ 51,742 $ 51,742 $ — $ — Commodity derivative instruments 2,473 2,473 — 2,473 — Liabilities: Deferred compensation plan liabilities 51,742 51,742 51,742 — — Long-term debt 940,465 1,015,700 — 1,015,700 — Acquisition related contingent consideration 434,694 434,694 — — 434,694 |
Summary of Acquisition Related Contingent Consideration Liability | A summary of the Level 3 activity is as follows: Third Quarter First Nine Months (in thousands) 2021 2020 2021 2020 Beginning balance - Level 3 liability $ 473,055 $ 441,113 $ 434,694 $ 446,684 Payments of acquisition related contingent consideration (8,720) (11,468) (28,640) (31,999) Reclassification to current payables (1,600) (800) (300) (1,100) Increase in fair value 33,924 19,808 90,905 35,068 Ending balance - Level 3 liability $ 496,659 $ 448,653 $ 496,659 $ 448,653 |
Pension and Postretirement Be_2
Pension and Postretirement Benefit Obligations (Tables) | 9 Months Ended |
Oct. 01, 2021 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost | The components of net periodic pension cost were as follows: Third Quarter First Nine Months (in thousands) 2021 2020 2021 2020 Service cost $ 1,863 $ 1,659 $ 5,589 $ 4,976 Interest cost 2,452 2,760 7,360 8,280 Expected return on plan assets (3,250) (3,382) (9,748) (10,148) Recognized net actuarial loss 1,219 1,189 3,654 3,568 Amortization of prior service cost 1 5 2 14 Net periodic pension cost $ 2,285 $ 2,231 $ 6,857 $ 6,690 The components of net periodic postretirement benefit cost were as follows: Third Quarter First Nine Months (in thousands) 2021 2020 2021 2020 Service cost $ 403 $ 376 $ 1,209 $ 1,128 Interest cost 447 504 1,342 1,511 Recognized net actuarial loss 186 88 557 263 Net periodic postretirement benefit cost $ 1,036 $ 968 $ 3,108 $ 2,902 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 9 Months Ended |
Oct. 01, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Other Liabilities | Other liabilities consisted of the following: (in thousands) October 1, 2021 December 31, 2020 Noncurrent portion of acquisition related contingent consideration $ 449,447 $ 398,674 Accruals for executive benefit plans 142,853 144,101 Noncurrent deferred proceeds from related parties 107,070 109,361 Noncurrent portion of deferred payroll taxes under CARES Act 18,739 18,706 Other 8,183 8,438 Total other liabilities $ 726,292 $ 679,280 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Oct. 01, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Following is a summary of the Company’s long-term debt: (in thousands) Maturity Interest Interest Public/ October 1, December 31, 2016 Term Loan Facility (1) 6/7/2021 Variable Varies Nonpublic $ — $ 217,500 Senior notes 2/27/2023 3.28% Semi-annually Nonpublic 125,000 125,000 2018 Revolving Credit Facility 6/8/2023 Variable Varies Nonpublic — — 2021 Term Loan Facility 7/9/2024 Variable Varies Nonpublic 70,000 — Senior bonds (2) 11/25/2025 3.80% Semi-annually Public 350,000 350,000 2021 Revolving Credit Facility 7/9/2026 Variable Varies Nonpublic — — Senior notes 10/10/2026 3.93% Quarterly Nonpublic 100,000 100,000 Senior notes 3/21/2030 3.96% Quarterly Nonpublic 150,000 150,000 Unamortized discount on senior bonds (2) 11/25/2025 (36) (43) Debt issuance costs (1,787) (1,992) Total long-term debt $ 793,177 $ 940,465 (1) As of December 31, 2020, the 2016 Term Loan Facility (as defined below) balance was classified as long term as the Company intended to refinance outstanding principal payments due in the next 12 months using the 2018 Revolving Credit Facility (as defined below), which was classified as long-term debt, and the Company was not restricted by any subjective acceleration clause within the agreement for the 2018 Revolving Credit Facility. (2) The senior bonds due in 2025 were issued at 99.975% of par. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Oct. 01, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Company's Purchases from Manufacturing Cooperatives | The following table summarizes the Company’s purchases from these manufacturing cooperatives: Third Quarter First Nine Months (in thousands) 2021 2020 2021 2020 Purchases from Southeastern $ 31,417 $ 31,196 $ 92,990 $ 94,835 Purchases from SAC 41,867 37,006 125,677 119,225 Total purchases from manufacturing cooperatives $ 73,284 $ 68,202 $ 218,667 $ 214,060 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Oct. 01, 2021 | |
Equity [Abstract] | |
Summary of Accumulated Other Comprehensive (Loss) | Following is a summary of AOCI(L) for the third quarter of 2021 and the third quarter of 2020: (in thousands) July 2, 2021 Pre-tax Activity Tax Effect October 1, 2021 Net pension activity: Actuarial loss $ (92,018) $ 1,219 $ (303) $ (91,102) Prior service credits 9 1 — 10 Net postretirement benefits activity: Actuarial loss (4,049) 186 (46) (3,909) Prior service costs (624) — — (624) Foreign currency translation adjustment 5 (8) 2 (1) Reclassification of stranded tax effects (19,720) — — (19,720) Total AOCI(L) $ (116,397) $ 1,398 $ (347) $ (115,346) (in thousands) June 28, 2020 Pre-tax Activity Tax Effect September 27, 2020 Net pension activity: Actuarial loss $ (91,381) $ 1,189 $ (293) $ (90,485) Prior service credits — 5 (1) 4 Net postretirement benefits activity: Actuarial loss (1,059) 88 (22) (993) Prior service costs (624) — — (624) Interest rate swap (1) (1,283) 402 (99) (980) Foreign currency translation adjustment (14) 15 (4) (3) Reclassification of stranded tax effects (19,720) — — (19,720) Total AOCI(L) $ (114,081) $ 1,699 $ (419) $ (112,801) (1) In 2019, the Company entered into a $100 million fixed rate swap to hedge a portion of the interest rate risk on the 2016 Term Loan Facility, both of which matured on June 7, 2021. This interest rate swap was designated as a cash flow hedging instrument and changes in its fair value were not material to the condensed consolidated balance sheets. Following is a summary of AOCI(L) for the first nine months of 2021 and the first nine months of 2020: (in thousands) December 31, 2020 Pre-tax Activity Tax Effect October 1, 2021 Net pension activity: Actuarial loss $ (93,847) $ 3,654 $ (909) $ (91,102) Prior service credits 8 2 — 10 Net postretirement benefits activity: Actuarial loss (4,328) 557 (138) (3,909) Prior service costs (624) — — (624) Interest rate swap (556) 739 (183) — Foreign currency translation adjustment 14 (21) 6 (1) Reclassification of stranded tax effects (19,720) — — (19,720) Total AOCI(L) $ (119,053) $ 4,931 $ (1,224) $ (115,346) (in thousands) December 29, 2019 Pre-tax Activity Tax Effect September 27, 2020 Net pension activity: Actuarial loss $ (93,174) $ 3,568 $ (879) $ (90,485) Prior service credits (costs) (7) 14 (3) 4 Net postretirement benefits activity: Actuarial loss (1,191) 263 (65) (993) Prior service costs (624) — — (624) Interest rate swap (270) (942) 232 (980) Foreign currency translation adjustment (16) 18 (5) (3) Reclassification of stranded tax effects (19,720) — — (19,720) Total AOCI(L) $ (115,002) $ 2,921 $ (720) $ (112,801) |
Summary of Impact of Accumulated Other Comprehensive Income (Loss) on Statement of Operations | Following is a summary of the impact of AOCI(L) on the condensed consolidated statements of operations: Third Quarter 2021 (in thousands) Net Pension Activity Net Postretirement Benefits Activity Foreign Currency Translation Adjustment Total Cost of sales $ 364 $ 97 $ — $ 461 Selling, delivery and administrative expenses 856 89 (8) 937 Subtotal pre-tax 1,220 186 (8) 1,398 Income tax expense 303 46 (2) 347 Total after tax effect $ 917 $ 140 $ (6) $ 1,051 Third Quarter 2020 (in thousands) Net Pension Activity Net Postretirement Benefits Activity Interest Rate Swap Foreign Currency Translation Adjustment Total Cost of sales $ 363 $ 55 $ — $ — $ 418 Selling, delivery and administrative expenses 831 33 402 15 1,281 Subtotal pre-tax 1,194 88 402 15 1,699 Income tax expense 294 22 99 4 419 Total after tax effect $ 900 $ 66 $ 303 $ 11 $ 1,280 First Nine Months 2021 (in thousands) Net Pension Activity Net Postretirement Benefits Activity Interest Rate Swap Foreign Currency Translation Adjustment Total Cost of sales $ 1,068 $ 304 $ — $ — $ 1,372 Selling, delivery and administrative expenses 2,588 253 739 (21) 3,559 Subtotal pre-tax 3,656 557 739 (21) 4,931 Income tax expense 909 138 183 (6) 1,224 Total after tax effect $ 2,747 $ 419 $ 556 $ (15) $ 3,707 First Nine Months 2020 (in thousands) Net Pension Activity Net Postretirement Benefits Activity Interest Rate Swap Foreign Currency Translation Adjustment Total Cost of sales $ 1,057 $ 160 $ — $ — $ 1,217 Selling, delivery and administrative expenses 2,525 103 (942) 18 1,704 Subtotal pre-tax 3,582 263 (942) 18 2,921 Income tax expense 882 65 (232) 5 720 Total after tax effect $ 2,700 $ 198 $ (710) $ 13 $ 2,201 |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow Information (Tables) | 9 Months Ended |
Oct. 01, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Summary of Changes in Current Assets and Current Liabilities Affecting Cash Flows | Changes in current assets and current liabilities affecting cash flows were as follows: First Nine Months (in thousands) 2021 2020 Accounts receivable, trade $ (56,766) $ (19,850) Allowance for doubtful accounts (5,010) 11,268 Accounts receivable from The Coca‑Cola Company (9,120) 7,895 Accounts receivable, other 7,846 (1,475) Inventories (14,738) 18,153 Prepaid expenses and other current assets (10,006) (368) Accounts payable, trade 62,775 40,937 Accounts payable to The Coca‑Cola Company 46,520 26,957 Other accrued liabilities 27,699 (14,578) Accrued compensation 9,009 (13,035) Accrued interest payable 2,337 1,747 Change in current assets less current liabilities $ 60,546 $ 57,651 |
Critical Accounting Policies _3
Critical Accounting Policies and Recent Accounting Pronouncements (Details) | Dec. 08, 2020 |
Piedmont Coca Cola Bottling Partnership | |
Noncontrolling Interest [Line Items] | |
Minority interest percentage | 22.70% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) $ in Thousands | 9 Months Ended | ||
Oct. 01, 2021USD ($) | Sep. 27, 2020USD ($) | Dec. 31, 2020USD ($) | |
Related Party Transaction [Line Items] | |||
Payments of acquisition related contingent consideration | $ 28,640 | $ 31,999 | |
Accounts receivable from related party | 58,323 | $ 49,203 | |
Lease liability, operating lease | 144,277 | 139,689 | |
Lease liability, finance lease | $ 72,277 | 75,844 | |
Long-Term Performance Equity Plan | |||
Related Party Transaction [Line Items] | |||
Award settled in cash or shares, average closing prices of shares during trading days of performance period (in days) | 20 days | ||
Long-Term Performance Equity Plan | Selling, delivery and administrative expenses | |||
Related Party Transaction [Line Items] | |||
Selling, distribution and administrative expenses | $ 7,600 | 7,200 | |
Harrison Family | |||
Related Party Transaction [Line Items] | |||
Voting power of stock held by related party (as a percent) | 86.00% | ||
The Coca-Cola Company | |||
Related Party Transaction [Line Items] | |||
Voting power of stock held by related party (as a percent) | 5.00% | ||
Percentage of interest held in outstanding common stock by The Coca-Cola Company | 27.00% | ||
Payments made to related party for concentrate syrup, sweetener, finished products and other purchases (as a percent) | 0.80 | ||
CCR | Comprehensive Beverage Agreement | |||
Related Party Transaction [Line Items] | |||
Payments of acquisition related contingent consideration | $ 28,600 | 32,000 | |
Southeastern | Other Assets | |||
Related Party Transaction [Line Items] | |||
Equity investments | 22,400 | 21,900 | |
SAC | |||
Related Party Transaction [Line Items] | |||
Proceeds from management fees received from SAC, classified as reduction of cost of sales | 6,600 | 6,900 | |
SAC | Other Assets | |||
Related Party Transaction [Line Items] | |||
Equity investments | 8,200 | 8,000 | |
CCBSS | |||
Related Party Transaction [Line Items] | |||
Accounts receivable from related party | 4,400 | 6,300 | |
Administrative fees due to CCBSS | 2,200 | 2,100 | |
CONA | |||
Related Party Transaction [Line Items] | |||
Service fees | 18,900 | $ 17,400 | |
CONA | Other Assets | |||
Related Party Transaction [Line Items] | |||
Equity investments | 13,300 | 11,500 | |
Beacon, Company Headquarters | |||
Related Party Transaction [Line Items] | |||
Lease liability, operating lease | 28,900 | 30,800 | |
HLP, SPC & Adjacent Sales Facility | |||
Related Party Transaction [Line Items] | |||
Lease liability, finance lease | $ 59,800 | $ 61,900 |
Related Party Transactions - Su
Related Party Transactions - Summary of Significant Transactions between Company and The Coca-Cola Company (Detail) - The Coca-Cola Company - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2021 | Sep. 27, 2020 | Oct. 01, 2021 | Sep. 27, 2020 | |
Related Party Transaction [Line Items] | ||||
Payments made by the Company to The Coca-Cola Company | $ 403,889 | $ 369,186 | $ 1,120,042 | $ 1,012,568 |
Payments made by The Coca-Cola Company to the Company | $ 51,024 | $ 30,458 | $ 131,026 | $ 91,086 |
Related Party Transactions - _2
Related Party Transactions - Summary of Liability to Estimated Fair Value of Contingent Consideration (Detail) - USD ($) $ in Thousands | Oct. 01, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Current portion of acquisition related contingent consideration | $ 47,212 | $ 36,020 |
Noncurrent portion of acquisition related contingent consideration | 449,447 | 398,674 |
CCR | Comprehensive Beverage Agreement | ||
Related Party Transaction [Line Items] | ||
Current portion of acquisition related contingent consideration | 47,212 | 36,020 |
Noncurrent portion of acquisition related contingent consideration | 449,447 | 398,674 |
Total acquisition related contingent consideration | $ 496,659 | $ 434,694 |
Related Party Transactions - _3
Related Party Transactions - Summary of Rental Payments Related to Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2021 | Sep. 27, 2020 | Oct. 01, 2021 | Sep. 27, 2020 | |
Company Headquarters | ||||
Related Party Transaction [Line Items] | ||||
Rental payments related to leases | $ 944 | $ 826 | $ 2,834 | $ 2,478 |
Snyder Production Center | ||||
Related Party Transaction [Line Items] | ||||
Rental payments related to leases | $ 1,112 | $ 1,112 | $ 3,338 | $ 3,338 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) $ in Millions | 9 Months Ended | ||
Oct. 01, 2021USD ($)category | Sep. 27, 2020 | Dec. 31, 2020USD ($) | |
Revenue From Contract With Customer [Line Items] | |||
Number of sales categories | category | 2 | ||
Reserve for customer return | $ | $ 3 | $ 3.6 | |
Repair Service | Minimum | |||
Revenue From Contract With Customer [Line Items] | |||
General period for completion of services | 1 day | ||
Repair Service | Maximum | |||
Revenue From Contract With Customer [Line Items] | |||
General period for completion of services | 1 month | ||
Bottle/Can Sales | |||
Revenue From Contract With Customer [Line Items] | |||
Sales return estimated percentage (less than) | 1.00% | ||
Post-Mix and Other | |||
Revenue From Contract With Customer [Line Items] | |||
Sales return estimated percentage (less than) | 1.00% | ||
Point in Time Net Sales | Revenue from Contract with Customer Benchmark | Timing Of Sale | |||
Revenue From Contract With Customer [Line Items] | |||
Sales percentage | 97.00% | 97.00% |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue from Contracts with Customers (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2021 | Sep. 27, 2020 | Oct. 01, 2021 | Sep. 27, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 1,457,432 | $ 1,328,484 | $ 4,160,375 | $ 3,728,720 |
Point in Time Net Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,415,643 | 1,286,542 | 4,029,846 | 3,607,502 |
Point in Time Net Sales | Nonalcoholic Beverages | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,415,643 | 1,286,542 | 4,029,846 | 3,607,502 |
Over Time Net Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 41,789 | 41,942 | 130,529 | 121,218 |
Over Time Net Sales | Nonalcoholic Beverages | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 11,328 | 8,729 | 32,130 | 25,874 |
Over Time Net Sales | All Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 30,461 | $ 33,213 | $ 98,399 | $ 95,344 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Activity in Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 01, 2021 | Sep. 27, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance - allowance for credit losses | $ 18,070 | $ 10,232 |
Additions charged to costs and expenses | 2,619 | 14,238 |
Deductions | (7,079) | (2,970) |
Ending balance - allowance for credit losses | $ 13,610 | $ 21,500 |
Segments - Additional Informati
Segments - Additional Information (Detail) | 9 Months Ended |
Oct. 01, 2021segment | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 3 |
All Other | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 2 |
Segments - Summary of Financial
Segments - Summary of Financial Information by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2021 | Sep. 27, 2020 | Oct. 01, 2021 | Sep. 27, 2020 | |
Net sales: | ||||
Consolidated net sales | $ 1,457,432 | $ 1,328,484 | $ 4,160,375 | $ 3,728,720 |
Income from operations: | ||||
Consolidated income from operations | 137,031 | 103,844 | 352,076 | 219,783 |
Depreciation and amortization: | ||||
Consolidated depreciation and amortization | 47,458 | 48,093 | 135,341 | 134,489 |
Operating Segments | Nonalcoholic Beverages | ||||
Net sales: | ||||
Consolidated net sales | 1,426,971 | 1,295,271 | 4,061,976 | 3,633,376 |
Income from operations: | ||||
Consolidated income from operations | 144,130 | 108,035 | 363,544 | 227,559 |
Depreciation and amortization: | ||||
Consolidated depreciation and amortization | 44,313 | 45,066 | 126,088 | 125,733 |
Operating Segments | All Other | ||||
Net sales: | ||||
Consolidated net sales | 88,991 | 84,776 | 272,132 | 246,406 |
Income from operations: | ||||
Consolidated income from operations | (7,099) | (4,191) | (11,468) | (7,776) |
Depreciation and amortization: | ||||
Consolidated depreciation and amortization | 3,145 | 3,027 | 9,253 | 8,756 |
Eliminations | ||||
Net sales: | ||||
Consolidated net sales | $ (58,530) | $ (51,563) | $ (173,733) | $ (151,062) |
Net Income Per Share - Computat
Net Income Per Share - Computation of Basic Net Income Per Share and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2021 | Sep. 27, 2020 | Oct. 01, 2021 | Sep. 27, 2020 | |
Numerator for basic and diluted net income per Common Stock and Class B Common Stock share: | ||||
Net income attributable to Coca‑Cola Consolidated, Inc. | $ 68,930 | $ 51,884 | $ 170,473 | $ 106,115 |
Less dividends: | ||||
Total undistributed earnings – basic | 66,587 | 49,540 | 163,443 | 99,085 |
Total undistributed earnings – diluted | 66,587 | 49,540 | 163,443 | 99,085 |
Common Stock | ||||
Less dividends: | ||||
Common Stock | 1,785 | 1,785 | 5,356 | 5,356 |
Total undistributed earnings – basic | 50,731 | 37,743 | 124,522 | 75,490 |
Total undistributed earnings – diluted | 50,536 | 37,515 | 123,993 | 75,034 |
Numerator for basic net income per Common Stock share: | ||||
Numerator for basic net income per Common Stock share | 52,516 | 39,528 | 129,878 | 80,846 |
Numerator for diluted net income per Common Stock share: | ||||
Numerator for diluted net income per Common Stock share | $ 68,930 | $ 51,884 | $ 170,473 | $ 106,115 |
Denominator for basic net income per Common Stock and Class B Common Stock share: | ||||
Common Stock weighted average shares outstanding - basic (in shares) | 7,141 | 7,141 | 7,141 | 7,141 |
Denominator for diluted net income per Common Stock and Class B Common Stock share: | ||||
Common Stock weighted average shares outstanding - diluted (assuming conversion of Class B Common Stock to Common Stock) (in shares) | 9,409 | 9,430 | 9,413 | 9,430 |
Basic net income per share: | ||||
Common Stock (in dollars per share) | $ 7.36 | $ 5.53 | $ 18.19 | $ 11.32 |
Diluted net income per share: | ||||
Common Stock (in dollars per share) | $ 7.32 | $ 5.51 | $ 18.11 | $ 11.25 |
Class B Common Stock | ||||
Less dividends: | ||||
Common Stock | $ 558 | $ 559 | $ 1,674 | $ 1,674 |
Total undistributed earnings – basic | 15,856 | 11,797 | 38,921 | 23,595 |
Total undistributed earnings – diluted | 16,051 | 12,025 | 39,450 | 24,051 |
Numerator for basic net income per Common Stock share: | ||||
Numerator for basic net income per Common Stock share | 16,414 | 12,356 | 40,595 | 25,269 |
Numerator for diluted net income per Common Stock share: | ||||
Numerator for diluted net income per Common Stock share | $ 16,609 | $ 12,584 | $ 41,124 | $ 25,725 |
Denominator for basic net income per Common Stock and Class B Common Stock share: | ||||
Common Stock weighted average shares outstanding - basic (in shares) | 2,232 | 2,232 | 2,232 | 2,232 |
Denominator for diluted net income per Common Stock and Class B Common Stock share: | ||||
Common Stock weighted average shares outstanding - diluted (assuming conversion of Class B Common Stock to Common Stock) (in shares) | 2,268 | 2,289 | 2,272 | 2,289 |
Basic net income per share: | ||||
Common Stock (in dollars per share) | $ 7.36 | $ 5.53 | $ 18.19 | $ 11.32 |
Diluted net income per share: | ||||
Common Stock (in dollars per share) | $ 7.31 | $ 5.51 | $ 18.10 | $ 11.24 |
Net Income Per Share - Comput_2
Net Income Per Share - Computation of Basic Net Income Per Share and Diluted Net Income Per Share, Textual (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2021 | Sep. 27, 2020 | Oct. 01, 2021 | Sep. 27, 2020 | |
Earnings Per Share [Abstract] | ||||
Percentage undistributed earnings allocated to common stock diluted | 100.00% | 100.00% | 100.00% | 100.00% |
Anti-dilutive shares | 0 | 0 | 0 | 0 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Oct. 01, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 142,715 | $ 140,080 |
Manufacturing materials | 55,296 | 47,081 |
Plastic shells, plastic pallets and other inventories | 42,484 | 38,596 |
Total inventories | $ 240,495 | $ 225,757 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Summary of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Oct. 01, 2021 | Dec. 31, 2020 |
Prepaid Expense and Other Assets [Abstract] | ||
Repair parts | $ 27,537 | $ 26,811 |
Commodity hedges at fair market value | 8,807 | 2,417 |
Prepaid software | 6,185 | 6,650 |
Prepaid marketing | 5,723 | 4,773 |
Prepaid taxes | 4,411 | 8,428 |
Other prepaid expenses and other current assets | 31,489 | 25,067 |
Total prepaid expenses and other current assets | $ 84,152 | $ 74,146 |
Assets Held for Sale (Details)
Assets Held for Sale (Details) - Assets Held for Sale - USD ($) $ in Thousands | Oct. 01, 2021 | Dec. 31, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total assets held for sale | $ 6,932 | $ 6,429 |
Land | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Property, plant, and equipment | 2,918 | 2,559 |
Buildings and leasehold and land improvements | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Property, plant, and equipment | $ 4,014 | $ 3,870 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Principal Categories and Estimated Useful Lives of Property, Plant and Equipment, Net (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 01, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 1,999,721 | $ 1,979,008 |
Less: Accumulated depreciation and amortization | 990,396 | 956,286 |
Property, plant and equipment, net | 1,009,325 | 1,022,722 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, at cost | 80,261 | 81,981 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 261,976 | 240,173 |
Buildings | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives (in years) | 8 years | |
Buildings | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives (in years) | 50 years | |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 436,049 | 392,998 |
Machinery and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives (in years) | 5 years | |
Machinery and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives (in years) | 20 years | |
Transportation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 454,999 | 445,218 |
Transportation equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives (in years) | 3 years | |
Transportation equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives (in years) | 20 years | |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 93,640 | 96,606 |
Furniture and fixtures | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives (in years) | 3 years | |
Furniture and fixtures | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives (in years) | 10 years | |
Cold drink dispensing equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 440,221 | 465,881 |
Cold drink dispensing equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives (in years) | 3 years | |
Cold drink dispensing equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives (in years) | 17 years | |
Leasehold and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 171,871 | 155,077 |
Leasehold and land improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives (in years) | 5 years | |
Leasehold and land improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives (in years) | 20 years | |
Software for internal use | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 48,043 | 46,569 |
Software for internal use | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives (in years) | 3 years | |
Software for internal use | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives (in years) | 10 years | |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 12,661 | $ 54,505 |
Leases - Summary of Weighted Av
Leases - Summary of Weighted Average Remaining Lease Term and Weighted Average Discount Rate for Population of Leases (Detail) | Oct. 01, 2021 | Dec. 31, 2020 |
Operating leases | ||
Weighted average remaining lease term (in years) | 8 years 7 months 6 days | 9 years 4 months 24 days |
Weighted average discount rate | 3.70% | 4.00% |
Financing leases | ||
Weighted average remaining lease term (in years) | 12 years 8 months 12 days | 13 years 4 months 24 days |
Weighted average discount rate | 3.10% | 3.20% |
Leases - Summary of Balances Re
Leases - Summary of Balances Related to Lease Portfolio within Condensed Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2021 | Sep. 27, 2020 | Oct. 01, 2021 | Sep. 27, 2020 | |
Leases [Abstract] | ||||
Operating lease costs | $ 6,828 | $ 6,243 | $ 19,647 | $ 18,392 |
Short-term and variable leases | 4,561 | 3,982 | 12,932 | 10,980 |
Depreciation expense from financing leases | 1,414 | 1,415 | 4,242 | 3,264 |
Interest expense on financing lease obligations | 575 | 613 | 1,738 | 1,120 |
Total lease cost | $ 13,378 | $ 12,253 | $ 38,559 | $ 33,756 |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Lease Payments For Noncancelable Operating And Financing Leases (Detail) - USD ($) $ in Thousands | Oct. 01, 2021 | Dec. 31, 2020 |
Operating Leases | ||
Remainder of 2021 | $ 6,212 | |
2022 | 24,389 | $ 24,056 |
2023 | 23,273 | 20,970 |
2024 | 19,211 | 18,125 |
2025 | 16,680 | 15,330 |
Thereafter | 81,220 | |
Total minimum lease payments including interest | 170,985 | 169,581 |
Less: Amounts representing interest | 26,708 | 29,892 |
Present value of minimum lease principal payments | 144,277 | 139,689 |
Less: Current portion of lease liabilities - operating leases | 20,650 | 19,766 |
Noncurrent portion of lease liabilities - operating leases | 123,627 | 119,923 |
Financing Leases | ||
Remainder of 2021 | 1,774 | |
2022 | 7,145 | 7,079 |
2023 | 7,201 | 7,145 |
2024 | 7,396 | 7,201 |
2025 | 7,593 | 7,396 |
Thereafter | 55,828 | |
Total minimum lease payments including interest | 86,937 | 92,241 |
Less: Amounts representing interest | 14,660 | 16,397 |
Present value of minimum lease principal payments | 72,277 | 75,844 |
Less: Current portion of lease liabilities - financing leases | 6,009 | 5,860 |
Noncurrent portion of lease liabilities - financing leases | $ 66,268 | $ 69,984 |
Leases - Summary of Future Mi_2
Leases - Summary of Future Minimum Lease Payments For Noncancelable Operating And Financing Leases, Year End (Detail) - USD ($) $ in Thousands | Oct. 01, 2021 | Dec. 31, 2020 |
Operating Leases | ||
2021 | $ 24,389 | $ 24,056 |
2022 | 23,273 | 20,970 |
2023 | 19,211 | 18,125 |
2024 | 16,680 | 15,330 |
2025 | 13,747 | |
Thereafter | 77,353 | |
Total minimum lease payments including interest | 170,985 | 169,581 |
Less: Amounts representing interest | 26,708 | 29,892 |
Present value of minimum lease principal payments | 144,277 | 139,689 |
Less: Current portion of lease liabilities - operating leases | 20,650 | 19,766 |
Noncurrent portion of lease liabilities - operating leases | 123,627 | 119,923 |
Financing Leases | ||
2021 | 7,145 | 7,079 |
2022 | 7,201 | 7,145 |
2023 | 7,396 | 7,201 |
2024 | 7,593 | 7,396 |
2025 | 7,593 | |
Thereafter | 55,827 | |
Total minimum lease payments including interest | 86,937 | 92,241 |
Less: Amounts representing interest | 14,660 | 16,397 |
Present value of minimum lease principal payments | 72,277 | 75,844 |
Less: Current portion of lease liabilities - financing leases | 6,009 | 5,860 |
Noncurrent portion of lease liabilities - financing leases | $ 66,268 | $ 69,984 |
Leases - Summary of Balances _2
Leases - Summary of Balances Related to Leases within Condensed Consolidated Statement of Cash Flow (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 01, 2021 | Sep. 27, 2020 | |
Cash flows from operating activities impact: | ||
Operating leases | $ 21,112 | $ 14,134 |
Interest payments on financing lease obligations | 1,738 | 1,120 |
Total cash flows from operating activities impact | 22,850 | 15,254 |
Cash flows from financing activities impact: | ||
Principal payments on financing lease obligations | 3,567 | 4,428 |
Total cash flows from financing activities impact | $ 3,567 | $ 4,428 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | Oct. 01, 2021USD ($)lease_commitment |
Lessee, Lease, Description [Line Items] | |
Number of lease commitments not yet commenced | lease_commitment | 1 |
Lease commitments not yet commenced, lease term (in years) | 3 years |
Lease commitments not yet commenced, additional lease liability | $ | $ 2 |
Distribution Agreements, Net -
Distribution Agreements, Net - Additional Information (Details) - Distribution agreements, net | 9 Months Ended |
Oct. 01, 2021 | |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life (in years) | 10 years |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life (in years) | 40 years |
Distribution Agreements, Net (D
Distribution Agreements, Net (Detail) - Distribution agreements, net - USD ($) $ in Thousands | Oct. 01, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Distribution agreements at cost | $ 952,547 | $ 952,533 |
Less: Accumulated amortization | 117,144 | 98,780 |
Total finite-lived intangible assets | $ 835,403 | $ 853,753 |
Customer Lists, Net - Additiona
Customer Lists, Net - Additional Information (Detail) - Customer lists, net | 9 Months Ended |
Oct. 01, 2021 | |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life (in years) | 5 years |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life (in years) | 12 years |
Customer Lists, Net - Schedule
Customer Lists, Net - Schedule of Customer Lists, Net (Detail) - Customer lists, net - USD ($) $ in Thousands | Oct. 01, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Customer lists at cost | $ 25,288 | $ 25,288 |
Less: Accumulated amortization | 13,863 | 12,484 |
Total finite-lived intangible assets | $ 11,425 | $ 12,804 |
Other Accrued Liabilities - Sum
Other Accrued Liabilities - Summary of Other Accrued Liabilities (Detail) - USD ($) $ in Thousands | Oct. 01, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accrued insurance costs | $ 51,401 | $ 48,318 |
Current portion of acquisition related contingent consideration | 47,212 | 36,020 |
Accrued marketing costs | 34,559 | 38,539 |
Employee and retiree benefit plan accruals | 33,707 | 31,653 |
Accrued taxes (other than income taxes) | 7,662 | 6,178 |
Current deferred proceeds from related parties | 3,064 | 3,085 |
Current portion of deferred payroll taxes under CARES Act | 0 | 18,706 |
All other accrued expenses | 36,496 | 22,642 |
Total other accrued liabilities | $ 214,101 | $ 205,141 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Summary of Pre-Tax Changes in Fair Value (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2021 | Sep. 27, 2020 | Oct. 01, 2021 | Sep. 27, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain (loss) | $ 4,220 | $ 1,769 | $ 7,701 | $ (25) |
Commodity derivative instruments | Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain (loss) | 3,794 | 1,194 | 6,210 | 924 |
Commodity derivative instruments | Selling, delivery and administrative expenses | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain (loss) | $ 426 | $ 575 | $ 1,491 | $ (949) |
Derivative Financial Instrume_4
Derivative Financial Instruments - Summary of Fair Values and Classification in Condensed Consolidated Balance Sheets of Derivative Instruments (Detail) - Commodity derivative instruments - USD ($) $ in Thousands | Oct. 01, 2021 | Dec. 31, 2020 |
Derivative Asset [Abstract] | ||
Total assets | $ 10,174 | $ 2,473 |
Gross commodity derivative instrument assets | 10,643 | 2,473 |
Gross commodity derivative instrument liabilities | 469 | 0 |
Prepaid expenses and other current assets | ||
Derivative Asset [Abstract] | ||
Total assets | 8,807 | 2,417 |
Other assets | ||
Derivative Asset [Abstract] | ||
Total assets | $ 1,367 | $ 56 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Summary of Outstanding Commodity Derivative Instruments (Detail) - USD ($) $ in Thousands | Oct. 01, 2021 | Dec. 31, 2020 |
Commodity derivative instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of outstanding commodity derivative instruments | $ 65,541 | $ 23,030 |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments - Deferred Compensation Plan, Commodity Derivative Instruments, Debt and Acquisition Related Contingent Consideration (Detail) - USD ($) $ in Thousands | Oct. 01, 2021 | Jul. 02, 2021 | Dec. 31, 2020 | Sep. 27, 2020 | Jun. 28, 2020 | Dec. 29, 2019 |
Commodity derivative instruments | ||||||
Assets: | ||||||
Commodity derivative instruments | $ 10,174 | $ 2,473 | ||||
Fair Value Level 3 | ||||||
Liabilities: | ||||||
Acquisition related contingent consideration | 496,659 | $ 473,055 | 434,694 | $ 448,653 | $ 441,113 | $ 446,684 |
Carrying Amount | ||||||
Assets: | ||||||
Deferred compensation plan assets | 57,005 | 51,742 | ||||
Liabilities: | ||||||
Deferred compensation plan liabilities | 57,005 | 51,742 | ||||
Long-term debt | 793,177 | 940,465 | ||||
Acquisition related contingent consideration | 496,659 | 434,694 | ||||
Carrying Amount | Commodity derivative instruments | ||||||
Assets: | ||||||
Commodity derivative instruments | 10,174 | 2,473 | ||||
Total Fair Value | ||||||
Assets: | ||||||
Deferred compensation plan assets | 57,005 | 51,742 | ||||
Liabilities: | ||||||
Deferred compensation plan liabilities | 57,005 | 51,742 | ||||
Long-term debt | 857,200 | 1,015,700 | ||||
Acquisition related contingent consideration | 496,659 | 434,694 | ||||
Total Fair Value | Commodity derivative instruments | ||||||
Assets: | ||||||
Commodity derivative instruments | 10,174 | 2,473 | ||||
Total Fair Value | Fair Value Level 1 | ||||||
Assets: | ||||||
Deferred compensation plan assets | 57,005 | 51,742 | ||||
Liabilities: | ||||||
Deferred compensation plan liabilities | 57,005 | 51,742 | ||||
Long-term debt | 0 | 0 | ||||
Acquisition related contingent consideration | 0 | 0 | ||||
Total Fair Value | Fair Value Level 1 | Commodity derivative instruments | ||||||
Assets: | ||||||
Commodity derivative instruments | 0 | 0 | ||||
Total Fair Value | Fair Value Level 2 | ||||||
Assets: | ||||||
Deferred compensation plan assets | 0 | 0 | ||||
Liabilities: | ||||||
Deferred compensation plan liabilities | 0 | 0 | ||||
Long-term debt | 857,200 | 1,015,700 | ||||
Acquisition related contingent consideration | 0 | 0 | ||||
Total Fair Value | Fair Value Level 2 | Commodity derivative instruments | ||||||
Assets: | ||||||
Commodity derivative instruments | 10,174 | 2,473 | ||||
Total Fair Value | Fair Value Level 3 | ||||||
Assets: | ||||||
Deferred compensation plan assets | 0 | 0 | ||||
Liabilities: | ||||||
Deferred compensation plan liabilities | 0 | 0 | ||||
Long-term debt | 0 | 0 | ||||
Acquisition related contingent consideration | 496,659 | 434,694 | ||||
Total Fair Value | Fair Value Level 3 | Commodity derivative instruments | ||||||
Assets: | ||||||
Commodity derivative instruments | $ 0 | $ 0 |
Fair Values of Financial Inst_4
Fair Values of Financial Instruments - Additional Information (Detail) $ in Millions | 9 Months Ended | |
Oct. 01, 2021USD ($) | Sep. 27, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amount payable annually under acquisition related contingent consideration arrangements, value, low | $ 32 | |
Amount payable annually under acquisition related contingent consideration arrangements, value, high | $ 59 | |
Fair Value Level 3 | Measurement Input, Discount Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Acquisition related contingent consideration liability, measurement input percentage | 0.076 | 0.074 |
Distribution Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated useful life (in years) | 40 years |
Fair Values of Financial Inst_5
Fair Values of Financial Instruments - Summary of Acquisition Related Contingent Consideration Liability (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2021 | Sep. 27, 2020 | Oct. 01, 2021 | Sep. 27, 2020 | |
Business Combination, Contingent Consideration, Liability [Roll Forward] | ||||
Payments of acquisition related contingent consideration | $ (28,640) | $ (31,999) | ||
Increase in fair value | 90,905 | 35,068 | ||
Level 3 | ||||
Business Combination, Contingent Consideration, Liability [Roll Forward] | ||||
Beginning balance - Level 3 liability | $ 473,055 | $ 441,113 | 434,694 | 446,684 |
Payments of acquisition related contingent consideration | (8,720) | (11,468) | (28,640) | (31,999) |
Reclassification to current payables | (1,600) | (800) | (300) | (1,100) |
Increase in fair value | 33,924 | 19,808 | 90,905 | 35,068 |
Ending balance - Level 3 liability | $ 496,659 | $ 448,653 | $ 496,659 | $ 448,653 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2021 | Sep. 27, 2020 | Oct. 01, 2021 | Sep. 27, 2020 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 26.80% | 25.60% | |||
Income tax expense | $ 25,022 | $ 18,363 | $ 62,317 | $ 38,911 | |
Uncertain tax positions | 2,800 | 2,800 | $ 2,600 | ||
Uncertain tax positions that would affect tax rate | $ 2,800 | $ 2,800 | $ 2,600 |
Pension and Postretirement Be_3
Pension and Postretirement Benefit Obligations - Additional Information (Detail) - Pension Plans $ in Millions | 9 Months Ended |
Oct. 01, 2021USD ($)benefit_plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Number of company-sponsored pension plans | benefit_plan | 2 |
Company contribution to pension plans during the period | $ 6.8 |
Expected employer contributions for the remainder of the year | $ 0 |
Pension and Postretirement Be_4
Pension and Postretirement Benefit Obligations - Components of Net Periodic Pension Cost (Detail) - Pension Plans - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2021 | Sep. 27, 2020 | Oct. 01, 2021 | Sep. 27, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1,863 | $ 1,659 | $ 5,589 | $ 4,976 |
Interest cost | 2,452 | 2,760 | 7,360 | 8,280 |
Expected return on plan assets | (3,250) | (3,382) | (9,748) | (10,148) |
Recognized net actuarial loss | 1,219 | 1,189 | 3,654 | 3,568 |
Amortization of prior service cost | 1 | 5 | 2 | 14 |
Net periodic pension/postretirement benefit cost | $ 2,285 | $ 2,231 | $ 6,857 | $ 6,690 |
Pension and Postretirement Be_5
Pension and Postretirement Benefit Obligations - Components of Net Periodic Postretirement Benefit Cost (Detail) - Postretirement Benefits - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2021 | Sep. 27, 2020 | Oct. 01, 2021 | Sep. 27, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 403 | $ 376 | $ 1,209 | $ 1,128 |
Interest cost | 447 | 504 | 1,342 | 1,511 |
Recognized net actuarial loss | 186 | 88 | 557 | 263 |
Net periodic pension/postretirement benefit cost | $ 1,036 | $ 968 | $ 3,108 | $ 2,902 |
Other Liabilities - Summary of
Other Liabilities - Summary of Other Liabilities (Detail) - USD ($) $ in Thousands | Oct. 01, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | ||
Noncurrent portion of acquisition related contingent consideration | $ 449,447 | $ 398,674 |
Accruals for executive benefit plans | 142,853 | 144,101 |
Noncurrent deferred proceeds from related parties | 107,070 | 109,361 |
Noncurrent portion of deferred payroll taxes under CARES Act | 18,739 | 18,706 |
Other | 8,183 | 8,438 |
Total other liabilities | $ 726,292 | $ 679,280 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 01, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Debt issuance costs | $ (1,787) | $ (1,992) |
Total long-term debt | $ 793,177 | 940,465 |
2016 Senior Unsecured Term Loan Facility | Non-public | Term Loan | ||
Debt Instrument [Line Items] | ||
Maturity Date | Jun. 7, 2021 | |
Interest Rate, Term | Variable | |
Interest Paid | Varies | |
Long-term debt, gross | $ 0 | 217,500 |
3.28% Senior Notes 2/27/2023 | Non-public | Senior Notes | ||
Debt Instrument [Line Items] | ||
Maturity Date | Feb. 27, 2023 | |
Interest Rate | 3.28% | |
Interest Paid | Semi-annually | |
Long-term debt, gross | $ 125,000 | 125,000 |
2018 Revolving Credit Facility | Revolving Credit Facility | Non-public | Line of Credit | ||
Debt Instrument [Line Items] | ||
Maturity Date | Jun. 8, 2023 | |
Interest Rate, Term | Variable | |
Interest Paid | Varies | |
Long-term debt, gross | $ 0 | 0 |
2021 Senior Unsecured Term Loan Facility | Non-public | Term Loan | ||
Debt Instrument [Line Items] | ||
Maturity Date | Jul. 9, 2024 | |
Interest Rate, Term | Variable | |
Interest Paid | Varies | |
Long-term debt, gross | $ 70,000 | 0 |
3.80% Senior Notes 11/25/2025 | Public | Senior Notes | ||
Debt Instrument [Line Items] | ||
Maturity Date | Nov. 25, 2025 | |
Interest Rate | 3.80% | |
Interest Paid | Semi-annually | |
Long-term debt, gross | $ 350,000 | 350,000 |
Unamortized discount on senior notes | $ (36) | (43) |
2021 Revolving Credit Facility | Revolving Credit Facility | Non-public | Line of Credit | ||
Debt Instrument [Line Items] | ||
Maturity Date | Jul. 9, 2026 | |
Interest Rate, Term | Variable | |
Interest Paid | Varies | |
Long-term debt, gross | $ 0 | 0 |
3.93% Senior Notes 10/10/2026 | Non-public | Senior Notes | ||
Debt Instrument [Line Items] | ||
Maturity Date | Oct. 10, 2026 | |
Interest Rate | 3.93% | |
Interest Paid | Quarterly | |
Long-term debt, gross | $ 100,000 | 100,000 |
3.96% Senior Notes 3/21/2030 | Non-public | Senior Notes | ||
Debt Instrument [Line Items] | ||
Maturity Date | Mar. 21, 2030 | |
Interest Rate | 3.96% | |
Interest Paid | Quarterly | |
Long-term debt, gross | $ 150,000 | $ 150,000 |
Long-Term Debt - Summary of Deb
Long-Term Debt - Summary of Debt, Footnotes (Detail) | Oct. 01, 2021 |
3.80% Senior Notes 11/25/2025 | Public | Senior Notes | |
Debt Instrument [Line Items] | |
Senior notes, issued at par percentage | 99.975% |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) | Jul. 09, 2021USD ($) | Dec. 31, 2021USD ($) | Oct. 01, 2021USD ($)financialCovenant | Dec. 31, 2020USD ($) |
Debt Instrument [Line Items] | ||||
Number of financial covenants | financialCovenant | 2 | |||
Debt issued by subsidiaries | $ 0 | $ 0 | ||
Guarantees of company debt | $ 0 | $ 0 | ||
2021 Revolving Credit Facility Agreement | Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, term (in years) | 5 years | |||
Aggregate maximum borrowing capacity | $ 500,000,000 | |||
2021 Revolving Credit Facility Agreement | Line of Credit | Revolving Credit Facility | Minimum | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage | 0.06% | |||
2021 Revolving Credit Facility Agreement | Line of Credit | Revolving Credit Facility | Maximum | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage | 0.175% | |||
2021 Term Loan Facility | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, term (in years) | 3 years | |||
Long-term debt | $ 70,000,000 | |||
2021 Term Loan Facility | Senior Notes | Subsequent Event | Forecast | ||||
Debt Instrument [Line Items] | ||||
Repayments of debt | $ 70,000,000 | |||
2018 Revolving Credit Facility | Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Repayments of debt | $ 55,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 9 Months Ended | 12 Months Ended | |
Oct. 01, 2021USD ($)case | Sep. 27, 2020case | Dec. 31, 2020USD ($) | |
Loss Contingencies [Line Items] | |||
Letters of credit totaled | $ 37,600,000 | $ 37,600,000 | |
Long-term marketing contractual arrangements | $ 140,600,000 | ||
Southeastern | |||
Loss Contingencies [Line Items] | |||
Purchase requirements of plastic bottles, percentage (at least) | 80.00% | ||
SAC | |||
Loss Contingencies [Line Items] | |||
Cases of finished product obligated to purchase on an annual basis | case | 17,500,000 | ||
Purchased number of cases, finished product from SAC | case | 21,000,000 | 21,900,000 | |
Debt guarantee for related party | $ 14,700,000 | 14,700,000 | |
Impairment of investment | $ 0 | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Company's Purchases from Manufacturing Cooperatives (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2021 | Sep. 27, 2020 | Oct. 01, 2021 | Sep. 27, 2020 | |
Loss Contingencies [Line Items] | ||||
Total purchases from manufacturing cooperatives | $ 73,284 | $ 68,202 | $ 218,667 | $ 214,060 |
Southeastern | ||||
Loss Contingencies [Line Items] | ||||
Total purchases from manufacturing cooperatives | 31,417 | 31,196 | 92,990 | 94,835 |
SAC | ||||
Loss Contingencies [Line Items] | ||||
Total purchases from manufacturing cooperatives | $ 41,867 | $ 37,006 | $ 125,677 | $ 119,225 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Summary of Accumulated Other Comprehensive (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2021 | Sep. 27, 2020 | Oct. 01, 2021 | Sep. 27, 2020 | Dec. 29, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning Balance | $ 612,502 | $ 505,565 | $ 512,990 | $ 451,116 | |
Ending Balance | 680,140 | 559,555 | 680,140 | 559,555 | |
Fixed Rate Swap | Designated as Hedging Instrument | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Notional amount of outstanding commodity derivative instruments | $ 100,000 | ||||
Reclassification of stranded tax effects | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning Balance | (19,720) | (19,720) | (19,720) | (19,720) | |
Pre-tax Activity | 0 | 0 | 0 | 0 | |
Tax Effect | 0 | 0 | 0 | 0 | |
Ending Balance | (19,720) | (19,720) | (19,720) | (19,720) | |
Total AOCI | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning Balance | (116,397) | (114,081) | (119,053) | (115,002) | |
Pre-tax Activity | 1,398 | 1,699 | 4,931 | 2,921 | |
Tax Effect | (347) | (419) | (1,224) | (720) | |
Ending Balance | (115,346) | (112,801) | (115,346) | (112,801) | |
Interest rate swap | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning Balance | (1,283) | (556) | (270) | ||
Pre-tax Activity | 402 | 739 | (942) | ||
Tax Effect | (99) | (183) | 232 | ||
Ending Balance | 0 | (980) | 0 | (980) | |
Foreign currency translation adjustment | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning Balance | 5 | (14) | 14 | (16) | |
Pre-tax Activity | (8) | 15 | (21) | 18 | |
Tax Effect | 2 | (4) | 6 | (5) | |
Ending Balance | (1) | (3) | (1) | (3) | |
Pension Plan | Actuarial loss | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning Balance | (92,018) | (91,381) | (93,847) | (93,174) | |
Pre-tax Activity | 1,219 | 1,189 | 3,654 | 3,568 | |
Tax Effect | (303) | (293) | (909) | (879) | |
Ending Balance | (91,102) | (90,485) | (91,102) | (90,485) | |
Pension Plan | Prior service credits | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning Balance | 9 | 0 | 8 | (7) | |
Pre-tax Activity | 1 | 5 | 2 | 14 | |
Tax Effect | 0 | (1) | 0 | (3) | |
Ending Balance | 10 | 4 | 10 | 4 | |
Postretirement Benefits | Actuarial loss | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning Balance | (4,049) | (1,059) | (4,328) | (1,191) | |
Pre-tax Activity | 186 | 88 | 557 | 263 | |
Tax Effect | (46) | (22) | (138) | (65) | |
Ending Balance | (3,909) | (993) | (3,909) | (993) | |
Postretirement Benefits | Prior service credits | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning Balance | (624) | (624) | (624) | (624) | |
Pre-tax Activity | 0 | 0 | 0 | 0 | |
Tax Effect | 0 | 0 | 0 | 0 | |
Ending Balance | $ (624) | $ (624) | $ (624) | $ (624) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Summary of Impact of Accumulated Other Comprehensive Income (Loss) on Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2021 | Sep. 27, 2020 | Oct. 01, 2021 | Sep. 27, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales | $ 939,720 | $ 856,046 | $ 2,699,020 | $ 2,421,686 |
Selling, delivery and administrative expenses | 380,681 | 368,594 | 1,109,279 | 1,087,251 |
Subtotal pre-tax | (93,952) | (73,417) | (232,790) | (152,179) |
Income tax expense | (25,022) | (18,363) | (62,317) | (38,911) |
Total after tax effect | (68,930) | (55,054) | (170,473) | (113,268) |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales | 461 | 418 | 1,372 | 1,217 |
Selling, delivery and administrative expenses | 937 | 1,281 | 3,559 | 1,704 |
Subtotal pre-tax | 1,398 | 1,699 | 4,931 | 2,921 |
Income tax expense | 347 | 419 | 1,224 | 720 |
Total after tax effect | 1,051 | 1,280 | 3,707 | 2,201 |
Reclassification out of Accumulated Other Comprehensive Income | Interest rate swap | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales | 0 | 0 | 0 | |
Selling, delivery and administrative expenses | 402 | 739 | (942) | |
Subtotal pre-tax | 402 | 739 | (942) | |
Income tax expense | 99 | 183 | (232) | |
Total after tax effect | 303 | 556 | (710) | |
Reclassification out of Accumulated Other Comprehensive Income | Foreign Currency Translation Adjustment | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales | 0 | 0 | 0 | 0 |
Selling, delivery and administrative expenses | (8) | 15 | (21) | 18 |
Subtotal pre-tax | (8) | 15 | (21) | 18 |
Income tax expense | (2) | 4 | (6) | 5 |
Total after tax effect | (6) | 11 | (15) | 13 |
Reclassification out of Accumulated Other Comprehensive Income | Pension Plan | Defined Benefit Plans | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales | 364 | 363 | 1,068 | 1,057 |
Selling, delivery and administrative expenses | 856 | 831 | 2,588 | 2,525 |
Subtotal pre-tax | 1,220 | 1,194 | 3,656 | 3,582 |
Income tax expense | 303 | 294 | 909 | 882 |
Total after tax effect | 917 | 900 | 2,747 | 2,700 |
Reclassification out of Accumulated Other Comprehensive Income | Postretirement Benefits | Defined Benefit Plans | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales | 97 | 55 | 304 | 160 |
Selling, delivery and administrative expenses | 89 | 33 | 253 | 103 |
Subtotal pre-tax | 186 | 88 | 557 | 263 |
Income tax expense | 46 | 22 | 138 | 65 |
Total after tax effect | $ 140 | $ 66 | $ 419 | $ 198 |
Supplemental Disclosures of C_3
Supplemental Disclosures of Cash Flow Information - Summary of Changes in Current Assets and Current Liabilities Affecting Cash Flows (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 01, 2021 | Sep. 27, 2020 | |
Supplemental Cash Flow Elements [Abstract] | ||
Accounts receivable, trade | $ (56,766) | $ (19,850) |
Allowance for doubtful accounts | (5,010) | 11,268 |
Accounts receivable from The Coca‑Cola Company | (9,120) | 7,895 |
Accounts receivable, other | 7,846 | (1,475) |
Inventories | (14,738) | 18,153 |
Prepaid expenses and other current assets | (10,006) | (368) |
Accounts payable, trade | 62,775 | 40,937 |
Accounts payable to The Coca‑Cola Company | 46,520 | 26,957 |
Other accrued liabilities | 27,699 | (14,578) |
Accrued compensation | 9,009 | (13,035) |
Accrued interest payable | 2,337 | 1,747 |
Change in current assets less current liabilities | $ 60,546 | $ 57,651 |