Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 16, 2018 | Jun. 30, 2017 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | COKE | ||
Entity Registrant Name | COCA COLA BOTTLING CO CONSOLIDATED /DE/ | ||
Entity Central Index Key | 317,540 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 1,066,187,233 | ||
Common Stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 7,141,447 | ||
Class B Common Stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 2,192,722 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Net sales | $ 4,323,668 | $ 3,156,428 | $ 2,306,458 |
Cost of sales | 2,782,721 | 1,940,706 | 1,405,426 |
Gross profit | 1,540,947 | 1,215,722 | 901,032 |
Selling, delivery and administrative expenses | 1,444,768 | 1,087,863 | 802,888 |
Income from operations | 96,179 | 127,859 | 98,144 |
Interest expense, net | 41,869 | 36,325 | 28,915 |
Other income (expense), net | (4,197) | 1,870 | (3,576) |
Gain (loss) on exchange transactions | 12,893 | (692) | 8,807 |
Gain on sale of business | 22,651 | ||
Bargain purchase gain, net of tax of $1,265 | 2,011 | ||
Income before taxes | 63,006 | 92,712 | 99,122 |
Income tax expense (benefit) | (39,841) | 36,049 | 34,078 |
Net income | 102,847 | 56,663 | 65,044 |
Less: Net income attributable to noncontrolling interest | 6,312 | 6,517 | 6,042 |
Net income attributable to Coca-Cola Bottling Co. Consolidated | $ 96,535 | $ 50,146 | $ 59,002 |
Basic net income per share based on net income attributable to Coca-Cola Bottling Co. Consolidated: | |||
Common Stock | $ 10.35 | $ 5.39 | $ 6.35 |
Weighted average number of Common Stock shares outstanding | 7,141 | 7,141 | 7,141 |
Diluted net income per share based on net income attributable to Coca-Cola Bottling Co. Consolidated: | |||
Common Stock | $ 10.30 | $ 5.36 | $ 6.33 |
Weighted average number of Common Stock shares outstanding – assuming dilution | 9,369 | 9,349 | 9,328 |
Class B Common Stock [Member] | |||
Basic net income per share based on net income attributable to Coca-Cola Bottling Co. Consolidated: | |||
Common Stock | $ 10.35 | $ 5.39 | $ 6.35 |
Weighted average number of Common Stock shares outstanding | 2,188 | 2,168 | 2,147 |
Diluted net income per share based on net income attributable to Coca-Cola Bottling Co. Consolidated: | |||
Common Stock | $ 10.29 | $ 5.35 | $ 6.31 |
Weighted average number of Common Stock shares outstanding – assuming dilution | 2,228 | 2,208 | 2,187 |
Consolidated Statements of Ope3
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 03, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | ||
Bargain purchase gain, tax | $ 1,265 | $ 1,265 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 102,847 | $ 56,663 | $ 65,044 |
Defined benefit plans reclassification including pension costs: | |||
Actuarial gain (loss) | (6,225) | (4,150) | 6,624 |
Prior service costs | 18 | 17 | 21 |
Postretirement benefits reclassification including benefit costs: | |||
Actuarial gain (loss) | 592 | (4,286) | 2,934 |
Prior service costs | (1,935) | (2,065) | (2,068) |
Adjustment due to the divestiture of the Deep South and Somerset Exchange Business and the Florence and Laurel Distribution Business | 6,220 | ||
Foreign currency translation adjustment | 25 | (6) | (4) |
Other comprehensive income (loss), net of tax | (1,305) | (10,490) | 7,507 |
Comprehensive income | 101,542 | 46,173 | 72,551 |
Less: Comprehensive income attributable to noncontrolling interest | 6,312 | 6,517 | 6,042 |
Comprehensive income attributable to Coca-Cola Bottling Co. Consolidated | $ 95,230 | $ 39,656 | $ 66,509 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 16,902 | $ 21,850 |
Accounts receivable, trade | 396,022 | 271,661 |
Allowance for doubtful accounts | (7,606) | (4,448) |
Accounts receivable from The Coca-Cola Company | 65,996 | 67,591 |
Accounts receivable, other | 38,960 | 29,770 |
Inventories | 183,618 | 143,553 |
Prepaid expenses and other current assets | 100,646 | 63,834 |
Total current assets | 794,538 | 593,811 |
Property, plant and equipment, net | 1,031,388 | 812,989 |
Leased property under capital leases, net | 29,837 | 33,552 |
Other assets | 116,209 | 86,091 |
Franchise rights | 533,040 | |
Goodwill | 169,316 | 144,586 |
Total assets | 3,072,960 | 2,449,484 |
Current liabilities: | ||
Current portion of obligations under capital leases | 8,221 | 7,527 |
Accounts payable, trade | 197,049 | 116,821 |
Accounts payable to The Coca-Cola Company | 171,042 | 135,155 |
Other accrued liabilities | 185,530 | 133,885 |
Accrued compensation | 72,484 | 60,880 |
Accrued interest payable | 5,126 | 3,639 |
Total current liabilities | 639,452 | 457,907 |
Deferred income taxes | 112,364 | 174,854 |
Pension and postretirement benefit obligations | 118,392 | 126,679 |
Other liabilities | 620,579 | 378,572 |
Obligations under capital leases | 35,248 | 41,194 |
Long-term debt | 1,088,018 | 907,254 |
Total liabilities | 2,614,053 | 2,086,460 |
Commitments and Contingencies | ||
Equity: | ||
Capital in excess of par value | 120,417 | 116,769 |
Retained earnings | 388,718 | 301,511 |
Accumulated other comprehensive loss | (94,202) | (92,897) |
Treasury stock, at cost: | ||
Total equity of Coca-Cola Bottling Co. Consolidated | 366,702 | 277,131 |
Noncontrolling interest | 92,205 | 85,893 |
Total equity | 458,907 | 363,024 |
Total liabilities and equity | 3,072,960 | 2,449,484 |
Convertible Preferred Stock [Member] | ||
Equity: | ||
Preferred Stock | ||
Nonconvertible Preferred Stock [Member] | ||
Equity: | ||
Preferred Stock | ||
Preferred Stock [Member] | ||
Equity: | ||
Preferred Stock | ||
Common Stock [Member] | ||
Equity: | ||
Common Stock | 10,204 | 10,204 |
Treasury stock, at cost: | ||
Treasury stock | (60,845) | (60,845) |
Class B Common Stock [Member] | ||
Equity: | ||
Common Stock | 2,819 | 2,798 |
Treasury stock, at cost: | ||
Treasury stock | (409) | (409) |
Distribution Agreements [Member] | ||
Current Assets: | ||
Other identifiable intangible assets, net | 913,352 | 234,988 |
Customer Lists and Other Identifiable Intangible Assets [Member] | ||
Current Assets: | ||
Other identifiable intangible assets, net | $ 18,320 | $ 10,427 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Jan. 01, 2017 |
Convertible Preferred Stock [Member] | ||
Preferred Stock, par value | $ 100 | $ 100 |
Preferred Stock, shares authorized | 50,000 | 50,000 |
Preferred Stock, shares issued | 0 | 0 |
Nonconvertible Preferred Stock [Member] | ||
Preferred Stock, par value | $ 100 | $ 100 |
Preferred Stock, shares authorized | 50,000 | 50,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock [Member] | ||
Preferred Stock, par value | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Common Stock [Member] | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 10,203,821 | 10,203,821 |
Treasury stock, shares | 3,062,374 | 3,062,374 |
Class B Common Stock [Member] | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 2,820,836 | 2,799,816 |
Treasury stock, shares | 628,114 | 628,114 |
Class C Common Stock [Member] | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 0 | 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Cash Flows from Operating Activities: | |||
Net income | $ 102,847 | $ 56,663 | $ 65,044 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation expense | 150,422 | 111,613 | 78,096 |
Amortization of intangible assets and deferred proceeds, net | 18,419 | 5,010 | 2,800 |
Deferred income taxes | (58,111) | 42,942 | 10,408 |
Loss on sale of property, plant and equipment | 4,492 | 2,892 | 1,268 |
Impairment of property, plant and equipment | 382 | 148 | |
(Gain) loss on exchange transactions | (12,893) | 692 | (8,807) |
Gain on sale of business | (22,651) | ||
Bargain purchase gain, net of tax of $1,265 | (2,011) | ||
Proceeds from bottling agreements conversion | 91,450 | ||
Proceeds from Legacy Facilities Credit | 30,647 | ||
Amortization of debt costs | 1,082 | 1,855 | 2,011 |
Stock compensation expense | 7,922 | 7,154 | 7,300 |
Fair value adjustment of acquisition related contingent consideration | 3,226 | (1,910) | 3,576 |
System Transformation Transactions settlements | (6,996) | ||
Gain on acquisition of Southeastern Container preferred shares in CCR redistribution | (6,012) | ||
Change in current assets less current liabilities (exclusive of acquisitions) | 259 | (39,909) | (18,262) |
Change in other noncurrent assets (exclusive of acquisitions) | (17,916) | (14,564) | (4,292) |
Change in other noncurrent liabilities (exclusive of acquisitions) | (1,100) | (10,850) | (6,214) |
Other | 78 | 25 | (124) |
Total adjustments | 204,969 | 105,332 | 43,246 |
Net cash provided by operating activities | 307,816 | 161,995 | 108,290 |
Cash Flows from Investing Activities: | |||
Acquisition of Expansion Territories, net of cash acquired and settlements | (265,060) | (272,637) | (71,209) |
Additions to property, plant and equipment (exclusive of acquisitions) | (176,601) | (172,586) | (163,887) |
Net cash paid for exchange transactions | (19,393) | (10,498) | |
Glacéau distribution agreement consideration | (15,598) | ||
Portion of Legacy Facilities Credit related to Mobile, Alabama facility | 12,364 | ||
Proceeds from cold drink equipment | 8,400 | ||
Investment in CONA Services LLC | (3,615) | (7,875) | |
Proceeds from the sale of property, plant and equipment | 608 | 1,072 | 1,891 |
Proceeds from the sale of BYB Brands, Inc. | 26,360 | ||
Net cash used in investing activities | (458,895) | (452,026) | (217,343) |
Cash Flows from Financing Activities: | |||
Proceeds from issuance of Senior Notes | 125,000 | 349,913 | |
Borrowings under Term Loan Facility | 300,000 | ||
Borrowing under Revolving Credit Facility | 448,000 | 410,000 | 334,000 |
Payments on Revolving Credit Facility | (393,000) | (258,000) | (405,000) |
Payments on Senior Notes | (164,757) | (100,000) | |
Cash dividends paid | (9,328) | (9,307) | (9,287) |
Payment of acquisition related contingent consideration | (16,738) | (13,550) | (4,039) |
Principal payments on capital lease obligations | (7,485) | (7,063) | (6,555) |
Other | (318) | (940) | (3,576) |
Net cash provided by financing activities | 146,131 | 256,383 | 155,456 |
Net increase (decrease) in cash | (4,948) | (33,648) | 46,403 |
Cash at beginning of year | 21,850 | 55,498 | 9,095 |
Cash at end of year | $ 16,902 | $ 21,850 | $ 55,498 |
Consolidated Statements of Cas8
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 03, 2016 | Dec. 31, 2015 | |
Statement Of Cash Flows [Abstract] | ||
Bargain purchase gain, tax | $ 1,265 | $ 1,265 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Class B Common Stock [Member] | Common Stock [Member] | Common Stock [Member]Class B Common Stock [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Retained Earnings [Member]Class B Common Stock [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock - Common Stock [Member] | Treasury Stock - Common Stock [Member]Class B Common Stock [Member] | Total Equity of Coca-Cola Bottling Co. Consolidated [Member] | Total Equity of Coca-Cola Bottling Co. Consolidated [Member]Class B Common Stock [Member] | Noncontrolling Interest [Member] |
Beginning Balance at Dec. 28, 2014 | $ 256,943 | $ 10,204 | $ 2,756 | $ 110,860 | $ 210,957 | $ (89,914) | $ (60,845) | $ (409) | $ 183,609 | $ 73,334 | |||
Net income | 65,044 | 59,002 | 59,002 | 6,042 | |||||||||
Other comprehensive income (loss), net of tax | 7,507 | 7,507 | 7,507 | ||||||||||
Cash dividends paid Common ($1.00 per share) | (7,141) | $ (2,146) | (7,141) | $ (2,146) | (7,141) | $ (2,146) | |||||||
Issuance of shares of Class B Common Stock | 2,225 | 21 | 2,204 | 2,225 | |||||||||
Ending Balance at Jan. 03, 2016 | 322,432 | 10,204 | 2,777 | 113,064 | 260,672 | (82,407) | (60,845) | (409) | 243,056 | 79,376 | |||
Net income | 56,663 | 50,146 | 50,146 | 6,517 | |||||||||
Other comprehensive income (loss), net of tax | (10,490) | (10,490) | (10,490) | ||||||||||
Cash dividends paid Common ($1.00 per share) | (7,141) | (2,166) | (7,141) | (2,166) | (7,141) | (2,166) | |||||||
Issuance of shares of Class B Common Stock | 3,726 | 21 | 3,705 | 3,726 | |||||||||
Ending Balance at Jan. 01, 2017 | 363,024 | 10,204 | 2,798 | 116,769 | 301,511 | (92,897) | (60,845) | (409) | 277,131 | 85,893 | |||
Net income | 102,847 | 96,535 | 96,535 | 6,312 | |||||||||
Other comprehensive income (loss), net of tax | (1,305) | (1,305) | (1,305) | ||||||||||
Cash dividends paid Common ($1.00 per share) | (7,141) | $ (2,187) | (7,141) | $ (2,187) | (7,141) | $ (2,187) | |||||||
Issuance of shares of Class B Common Stock | 3,669 | 21 | 3,648 | 3,669 | |||||||||
Ending Balance at Dec. 31, 2017 | $ 458,907 | $ 10,204 | $ 2,819 | $ 120,417 | $ 388,718 | $ (94,202) | $ (60,845) | $ (409) | $ 366,702 | $ 92,205 |
Consolidated Statements of Ch10
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Cash dividend per share | $ 1 | $ 1 | $ 1 |
Class B Common Stock [Member] | |||
Cash dividend per share | $ 1 | $ 1 | $ 1 |
Class B common stock shares issued | 21,020 | 20,920 | 20,920 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | 1. Description of Business and Summary of Significant Accounting Policies Description of Business Coca‑Cola Bottling Co. Consolidated (the “Company”) produces, markets and distributes nonalcoholic beverages, primarily products of The Coca‑Cola Company, and is the largest independent Coca‑Cola bottler in the United States. Approximately 93% of the Company’s total bottle/can sales volume to retail customers consists of products of The Coca‑Cola Company, which include some of the most recognized and popular beverage brands in the world. The Company also distributes products for several other beverage brands including Dr Pepper and Monster Energy. The Company manages its business on the basis of four operating segments, Nonalcoholic Beverages and three additional operating segments that do not meet the quantitative thresholds for separate reporting, either individually or in the aggregate, and therefore have been combined into “All Other.” Piedmont Coca-Cola Bottling Partnership (“Piedmont”) is the Company’s only subsidiary that has a significant third-party noncontrolling interest. Piedmont distributes and markets nonalcoholic beverages in portions of North Carolina and South Carolina. The Company provides a portion of these nonalcoholic beverage products to Piedmont at cost and receives a fee for managing the operations of Piedmont pursuant to a management agreement. Refer to Note 2 for additional information. As part of The Coca‑Cola Company’s plans to refranchise its North American bottling territories, the Company recently concluded a series of transactions from April 2013 to October 2017 with The Coca‑Cola Company, Coca‑Cola Refreshments USA, Inc. (“CCR”), a wholly-owned subsidiary of The Coca‑Cola Company, and Coca‑Cola Bottling Company United, Inc. (“United”), an independent bottler that is unrelated to the Company, to significantly expand the Company’s distribution and manufacturing operations through the acquisition and exchange of rights to serve distribution territories (the “Expansion Territories”) and related distribution assets, as well as the acquisition and exchange of regional manufacturing facilities (the “Expansion Facilities”) and related manufacturing assets. Refer to Note 3 for additional information. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and 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. Fiscal Year The Company’s fiscal year generally ends on the Sunday closest to December 31 of each year. The fiscal years presented are: • The 52-week period ended December 31, 2017 (“2017”) • The 52-week period ended January 1, 2017 (“2016”); and • The 53-week period ended January 3, 2016 (“2015”). Cash and Cash Equivalents Cash and cash equivalents include cash on hand, cash in banks and cash equivalents, which are highly liquid debt instruments with maturities of less than 90 days. The Company maintains cash deposits with major banks, which, from time to time, may exceed federally insured limits. The Company periodically assesses the financial condition of the institutions and believes the risk of any loss is minimal. Accounts Receivable, Trade The Company sells its products to mass merchandise retailers, supermarkets retailers, convenience stores and other customers and extends credit, generally without requiring collateral, based on an ongoing evaluation of the customer’s business prospects and financial condition. The Company’s trade accounts receivable are typically collected within 30 days from the date of sale. Allowance for Doubtful Accounts The Company evaluates the collectibility of its trade accounts receivable based on a number of factors, including the specific industry in which a particular customer operates. When the Company becomes aware of a customer’s inability to meet its financial obligations to the Company, a specific reserve for bad debts is estimated and recorded to reduce the recognized receivable to the estimated amount the Company believes will ultimately be collected. In addition to specific customer identification of potential bad debts, an allowance for doubtful accounts is recorded based on the Company’s recent past loss history and an overall assessment of past due trade accounts receivable outstanding. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined on the first-in, first-out method for finished products and manufacturing materials and on the average cost method for plastic shells, plastic pallets and other inventories. Property, Plant and Equipment Property, plant and equipment are recorded at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements on operating leases are depreciated over the shorter of the estimated useful lives or the term of the lease, including renewal options the Company determines are reasonably assured. Additions and major replacements or betterments are added to the assets at cost. Maintenance and repair costs and minor replacements are charged to expense when incurred. When assets are replaced or otherwise disposed, the cost and accumulated depreciation are removed from the accounts and the gains or losses, if any, are reflected in the statement of operations. Gains or losses on the disposal of manufacturing equipment and manufacturing facilities are included in cost of sales. Gains or losses on the disposal of all other property, plant and equipment are included in selling, delivery and administrative (“S,D&A”) expenses. The Company evaluates the recoverability of the carrying amount of its property, plant and equipment when events or circumstances indicate the carrying amount of an asset or asset group may not be recoverable. These evaluations are performed at a level where independent cash flows may be attributed to either an asset or an asset group. If the Company determines the carrying amount of an asset or asset group is not recoverable based upon the expected undiscounted future cash flows of the asset or asset group, an impairment loss is recorded equal to the excess of the carrying amounts over the estimated fair value of the long-lived assets. Leased Property Under Capital Leases Leased property under capital leases is depreciated using the straight-line method over the lease term. Internal Use Software The Company capitalizes costs incurred in the development or acquisition of internal use software. The Company expenses costs incurred in the preliminary project planning stage. Costs, such as maintenance and training, are also expensed as incurred. Capitalized costs are amortized over their estimated useful lives using the straight-line method. Amortization expense, which is included in depreciation expense, for internal-use software was $11.9 million in 2017, $10.9 million in 2016 and $9.3 million in 2015. Goodwill All business combinations are accounted for using the acquisition method. Goodwill is tested for impairment annually, or more frequently if facts and circumstances indicate such assets may be impaired. The Company performs its annual impairment test, which includes a qualitative assessment to determine whether it is more likely than not that the fair value of the goodwill is below its carrying value, as of the first day of the fourth quarter each year, and more often if there are significant changes in business conditions that could result in impairment. The Company has determined it has one reporting unit, within the Nonalcoholic Beverages reportable segment, for the purpose of assessing goodwill for potential impairment. The Company uses its overall market capitalization as part of its estimate of fair value of the reporting unit and in assessing the reasonableness of the Company’s internal estimates of fair value. When a quantitative analysis is considered necessary for the annual impairment analysis of goodwill, the Company develops an estimated fair value for the reporting unit considering three different approaches: • market value, using the Company’s stock price plus outstanding debt; • discounted cash flow analysis; and • multiple of earnings before interest, taxes, depreciation and amortization based upon relevant industry data. The estimated fair value of the reporting unit is then compared to its carrying amount, including goodwill. If the estimated fair value exceeds the carrying amount, goodwill is not considered impaired, and the second step of the impairment test is not necessary. If the carrying amount, including goodwill, exceeds its estimated fair value, the second step of the impairment test is performed to measure the amount of the impairment, if any. In the second step, a comparison is made between the book value of goodwill and the implied fair value of goodwill. Implied fair value of goodwill is determined by comparing the fair value of the reporting unit to the book value of its net identifiable assets, excluding goodwill. To estimate the implied fair value of goodwill for a reporting unit, the Company assigns the fair value of the assets and liabilities associated with the reporting unit as if the reporting unit had been acquired in a business combination. Any excess of the carrying value of goodwill of the reporting unit over its implied fair value is recorded as an impairment. To the extent the actual and projected cash flows decline in the future or if market conditions significantly deteriorate, the Company may be required to perform an interim impairment analysis that could result in an impairment of goodwill. Distribution Agreements, Customer Lists and Other Identifiable Intangible Assets The Company’s definite-lived intangible assets primarily consist of distribution rights and customer relationships, which have estimated useful lives of 20 to 40 years and 12 to 20 years, respectively. These assets are amortized on a straight-line basis over their estimated useful lives. In the first quarter of 2017, the Company converted its franchise rights to distribution rights with an estimated useful life of 40 years. Acquisition Related Contingent Consideration Liability The acquisition related contingent consideration liability consists of the estimated amounts due to The Coca‑Cola Company under the Company’s comprehensive beverage agreement with The Coca‑Cola Company and CCR (the “CBA”) over the remaining useful life of the related distribution rights intangible assets. Under the CBA, the Company makes quarterly sub-bottling payments to CCR on a continuing basis for the grant of exclusive rights to distribute, promote, market and sell certain beverages and beverage products in the Expansion Territories. This acquisition related contingent consideration is 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 Expansion Territories to fair value by discounting future expected sub-bottling payments required under the CBA using the Company’s estimated WACC. These future expected sub-bottling payments extend through the life of the related distribution assets acquired in each Expansion Territory, which is generally 40 Pension and Postretirement Benefit Plans There are two Company-sponsored pension plans. The primary Company-sponsored pension plan (the “Primary Plan”) was frozen as of June 30, 2006 and no benefits accrued to participants after this 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 actuarial determined amounts and are limited to the amounts currently deductible for income tax purposes. Costs of the plans are charged to current operations and include several components of net periodic pension cost based on actuarial assumptions regarding future expectations of the plans. In addition, certain other union employees are covered by plans provided by their respective union organizations and the Company expenses amounts as paid in accordance with union agreements. The Company recognizes the cost of postretirement benefits, which consist primarily of medical benefits, during employees’ periods of active service. Amounts recorded for benefit plans reflect estimates related to interest rates, investment returns, employee turnover and health care costs. The discount rate assumptions used to determine the pension and postretirement benefit obligations are based on yield rates available on double-A bonds as of each plan’s measurement date. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to operating losses and tax credit carryforwards, as well as differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance will be provided against deferred tax assets if the Company determines it is more likely than not such assets will not ultimately be realized. The Company does not recognize a tax benefit unless it concludes that it is more likely than not that the benefit will be sustained on audit by the taxing authority based solely on the technical merits of the associated tax position. If the recognition threshold is met, the Company recognizes a tax benefit measured at the largest amount of the tax benefit that, in the Company’s judgment, is greater than 50 percent likely to be realized. The Company records interest and penalties related to uncertain tax positions in income tax expense. Revenue Recognition Revenues are recognized when finished products are delivered to customers and both the title and the risks and benefits of ownership are transferred, price is fixed and determinable, collection is reasonably assured and, in the event of full service vending, when cash is collected from the vending machines. Appropriate provisions are made for uncollectible accounts. The Company receives service fees from The Coca‑Cola Company for the delivery of fountain syrup products to The Coca‑Cola Company’s fountain customers and for the repair of fountain equipment owned by The Coca‑Cola Company. These service fees are recognized as revenue when the respective services are completed. Service revenue represents approximately one percent of net sales, and is presented within the Nonalcoholic Beverages segment. In addition to delivering its own products, the Company performs freight hauling and brokerage for third parties. The freight charges are recognized as revenue when the delivery is complete. Freight revenue from third parties represents approximately two percent of net sales, and is presented within the All Other segment. Revenues do not include sales or other taxes collected from customers. Marketing Programs and Sales Incentives The Company participates in various marketing and sales programs with The Coca‑Cola Company, other beverage companies and customers to increase the sale of its products. In addition, coupon programs are deployed on a territory-specific basis. The cost of these various marketing programs and sales incentives with The Coca‑Cola Company and other beverage companies, included as deductions to net sales, totaled $137.3 million in 2017, $117.0 million in 2016 and $71.4 million in 2015. Programs negotiated with customers include arrangements under which allowances can be earned for attaining agreed-upon sales levels and/or for participating in specific marketing programs. Marketing Funding Support The Company receives marketing funding support payments in cash from The Coca‑Cola Company and other beverage companies. Payments to the Company for marketing programs to promote bottle/can sales volume and fountain syrup sales volume are recognized as a reduction of cost of sales, primarily on a per unit basis, as the product is sold. Payments for periodic programs are recognized in the period during which they are earned. Cash consideration received by a customer from a vendor is presumed to be a reduction of the price of the vendor’s products or services. As such, the cash received is accounted for as a reduction of cost of sales unless it is a specific reimbursement of costs or payments for services. Payments the Company receives from The Coca‑Cola Company and other beverage companies for marketing funding support are classified as reductions of cost of sales. 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 derivative instruments. The Company does not use derivative instruments for trading or speculative purposes. All derivative instruments are recorded at fair value as either assets or liabilities in the Company’s consolidated balance sheets. These derivative instruments are not designated as hedging instruments under GAAP and are used as “economic hedges” to manage certain commodity price risk. Derivative instruments held are marked to market on a monthly basis and recognized in earnings consistent with the expense classification of the underlying hedged item. Settlements of derivative agreements are included in cash flows from operating activities on the Company’s consolidated statements of cash flows. The Company uses several different financial institutions for commodity derivative instruments to minimize the concentration of credit risk. The Company generally pays a fee for these instruments, which is amortized over the corresponding period of the instrument. The Company accounts for its commodity hedges on a mark-to-market basis with any expense or income reflected as an adjustment of related costs which are included in either cost of sales or S,D&A expenses. Risk Management Programs The Company uses various insurance structures to manage its workers’ compensation, auto liability, medical and other insurable risks. These structures consist of retentions, deductibles, limits and a diverse group of insurers that serve to strategically transfer and mitigate the financial impact of losses. The Company uses commercial insurance for claims as a risk reduction strategy to minimize catastrophic losses. Losses are accrued using assumptions and procedures followed in the insurance industry, adjusted for company-specific history and expectations. Cost of Sales Cost of sales includes the following: raw material costs, manufacturing labor, manufacturing overhead including depreciation expense, manufacturing warehousing costs, shipping and handling costs related to the movement of finished goods from manufacturing locations to sales distribution centers and the purchase of finished goods. Inputs representing a substantial portion of the Company’s total cost of sales include: (i) sweeteners, (ii) packaging materials, including plastic bottles and aluminum cans, and (iii) finished products purchased from other vendors. The Company’s cost of sales may not be comparable to other peer companies, as some peer companies include all costs related to their distribution network in cost of sales. The Company includes a portion of these costs in S,D&A expenses, as described below. Selling, Delivery and Administrative Expenses S,D&A expenses include the following: sales management labor costs, distribution costs from sales distribution centers to customer locations, sales distribution center warehouse costs, depreciation expense related to sales centers, delivery vehicles and cold drink equipment, point-of-sale expenses, advertising expenses, cold drink equipment repair costs, amortization of intangibles and administrative support labor and operating costs. Shipping and Handling Costs Shipping and handling costs related to the movement of finished goods from manufacturing locations to sales distribution centers are included in cost of sales. Shipping and handling costs related to the movement of finished goods from sales distribution centers to customer locations, including warehouse costs, are included in S,D&A expenses and totaled $550.9 million in 2017, $395.4 million in 2016 and $277.9 million in 2015. Delivery fees charged by the Company to retail customers are used to offset a portion of the Company’s delivery and handling costs. The fees are recorded in net sales and are presented within the Nonalcoholic Beverages segment. Delivery fees were $5.7 million in 2017, $6.0 million in 2016 and $6.3 million in 2015. Stock Compensation with Contingent Vesting In April 2008, the stockholders of the Company approved a Performance Unit Award Agreement for J. Frank Harrison, III, the Company’s Chairman of the Board of Directors and Chief Executive Officer, consisting of 400,000 performance units (“Units”). Each Unit represents the right to receive one share of the Company’s Class B Common Stock, subject to certain terms and conditions. The Units are subject to vesting in annual increments over a ten-year period starting in fiscal year 2009. The number of Units that vest each year will be equal the product of 40,000 multiplied by the overall goal achievement factor, not to exceed 100%, under the Company’s Annual Bonus Plan. Each annual 40,000 unit tranche has an independent performance requirement that is not established until the Company’s Annual Bonus Plan targets are approved during the first quarter of each year by the Compensation Committee of the Board of Directors. As a result, each 40,000 unit tranche is considered to have its own service inception date, grant-date and requisite service period. The Performance Unit Award Agreement does not entitle Mr. Harrison, to participate in dividends or voting rights until each installment has vested and related shares are issued. Mr. Harrison may satisfy tax withholding requirements in whole or in part by requiring the Company to settle in cash such a number of units otherwise payable in Class B Common Stock to meet the maximum statutory tax withholding requirements. The Company recognizes compensation expense over the requisite service period (one fiscal year) based on the Company’s stock price at the end of each accounting period, unless the achievement of the performance requirement for the fiscal year is considered unlikely. See Note 20 to the consolidated financial statements for additional information on Mr. Harrison’s stock compensation program. Net Income Per Share The Company applies the two-class method for calculating and presenting net income per share. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock according to dividends declared or accumulated and participation rights in undistributed earnings. Under this method: (a) Income from continuing operations (“net income”) is reduced by the amount of dividends declared in the current period for each class of stock and by the contractual amount of dividends that must be paid for the current period. (b) The remaining earnings (“undistributed earnings”) are allocated to Common Stock and Class B Common Stock to the extent each security may share in earnings as if all the earnings for the period had been distributed. The total earnings allocated to each security is determined by adding together the amount allocated for dividends and the amount allocated for a participation feature. (c) The total earnings allocated to each security is then divided by the number of outstanding shares of the security to which the earnings are allocated to determine the earnings per share for the security. (d) Basic and diluted earnings per share (“EPS”) data are presented for each class of common stock. In applying the two-class method, the Company determined undistributed earnings should be allocated equally on a per share basis between the Common Stock and Class B Common Stock due to the aggregate participation rights of the Class B Common Stock (i.e., the voting and conversion rights) and the Company’s history of paying dividends equally on a per share basis on the Common Stock and Class B Common Stock. Under the Company’s certificate of incorporation, the Board of Directors may declare dividends on Common Stock without declaring equal or any dividends on the Class B Common Stock. Notwithstanding this provision, Class B Common Stock has voting and conversion rights that allow the Class B Common Stock to participate equally on a per share basis with the Common Stock. The Class B Common Stock is entitled to 20 votes per share and the Common Stock is entitled to one vote per share with respect to each matter to be voted upon by the stockholders of the Company. Except as otherwise required by law, the holders of the Class B Common Stock and Common Stock vote together as a single class on all matters submitted to the Company’s stockholders, including the election of the Board of Directors. As a result, the holders of the Class B Common Stock control approximately 86% of the total voting power of the stockholders of the Company and control the election of the Board of Directors. The Board of Directors has declared and the Company has paid dividends on the Class B Common Stock and Common Stock and each class of common stock has participated equally in all dividends declared by the Board of Directors and paid by the Company since 1994. The Class B Common Stock conversion rights allow the Class B Common Stock to participate in dividends equally with the Common Stock. The Class B Common Stock is convertible into Common Stock on a one-for-one per share basis at any time at the option of the holder. Accordingly, the holders of the Class B Common Stock can participate equally in any dividends declared on the Common Stock by exercising their conversion rights. Basic EPS excludes potential common shares that were dilutive and is computed by dividing net income available for common stockholders by the weighted average number of Common and Class B Common shares outstanding. Diluted EPS for Common Stock and Class B Common Stock gives effect to all securities representing potential common shares that were dilutive and outstanding during the period. The Company does not have anti-dilutive shares. Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) The Company adopted this guidance in the first quarter of 2017 and there was no impact to the Company’s consolidated financial statements. In July 2015, the FASB issued ASU 2015-11 “Simplifying the Measurement of Inventory.” The new guidance requires an entity to measure most inventory “at lower of cost and net realizable value” thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. The new guidance is effective for annual and interim periods beginning after December 15, 2016. The Company adopted this guidance in the first quarter of 2017 and there was no material impact to the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements In February 2018, the FASB issued ASU 2018‑02 “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (“Tax Act”). The new guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years and can be early adopted. The Company is still evaluating the impacts of this standard should it choose to make this reclassification. In March 2017, the FASB issued ASU 2017‑07 “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which requires that the service cost component of the Company’s net periodic pension cost and net periodic postretirement benefit cost be included in the same line item as other compensation costs arising from services rendered by employees, with the non-service cost components of net periodic benefit cost being classified outside of a subtotal of income from operations. Of the components of net periodic benefit cost, only the service cost component will be eligible for asset capitalization. The new guidance is effective for annual periods beginning after December 31, 2017, including interim periods within those annual periods. The Company will adopt the new accounting standards on January 1, 2018 using the practical expedient which allows entities to use information previously disclosed in their pension and other postretirement benefit plans note as the estimation basis to apply the retrospective presentation requirements in ASU 2017-07. For 2017 and 2016, the Company expects to reclassify $5.4 million and $3.3 million, respectively, related to its non-service cost components of net periodic benefit cost and other benefit plan charges from income from operations to other income (expense), net in the consolidated financial statements. The Company will record the service cost component of net periodic benefit cost in selling, delivery and administrative expenses in the consolidated financial statements. In 2018, the Company expects to record service cost of $7.7 million and $2.7 million related to its non-service cost components of net periodic benefit cost and other benefit plan charges, respectively. In January 2017, the FASB issued ASU 2017-04 “Simplifying the Test for Goodwill Impairment,” which The new guidance is effective for the annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 and can be early adopted. The Company does not anticipate the adoption of this guidance will have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01 “Clarifying the Definition of a Business,” which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The new guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The impact to the Company’s consolidated financial statements will depend on the facts and circumstances of any specific future transactions. In February 2016, the FASB issued ASU 2016-02 “Leases,” which requires lessees to recognize a right-to-use asset and a lease liability for virtually all leases (other than leases meeting the definition of a short-term lease). The new guidance is effective for fiscal years beginning after December 15, 2018 and interim periods beginning the following fiscal year. The Company is in the process of evaluating the impact of the new guidance on the Company’s consolidated financial statements and anticipates this impact will be material to its consolidated balance sheets. Additionally, the Company is evaluating the impacts of the standard beyond accounting, including system, data and process changes required to comply with the standard. In January 2016, the FASB issued ASU 2016-01 “Recognition and Measurement of Financial Assets and Financial Liabilities,” which revises the classification and measurement of investments in equity securities and the presentation of certain fair value changes in financial liabilities measured at fair value. The new guidance is effective for annual and interim periods beginning after December 31, 2017. The Company will adopt the new accounting standards on January 1, 2018 and does not antici |
Piedmont Coca-Cola Bottling Par
Piedmont Coca-Cola Bottling Partnership | 12 Months Ended |
Dec. 31, 2017 | |
Noncontrolling Interest [Abstract] | |
Piedmont Coca-Cola Bottling Partnership | 2. Piedmont Coca-Cola Bottling Partnership The Company and The Coca‑Cola Company formed Piedmont in 1993 to distribute and market nonalcoholic beverages primarily in portions of North Carolina and South Carolina. The Company provides a portion of the nonalcoholic beverage products that Piedmont distributes and markets to Piedmont at cost and receives a fee for managing Piedmont’s operations pursuant to a management agreement. All transactions with Piedmont, including the financing arrangements described below, are intercompany transactions and are eliminated in the Company’s consolidated financial statements. Noncontrolling interest represents the portion of Piedmont owned by The Coca‑Cola Company, which was 22.7% in all periods reported. Noncontrolling interest income of $6.3 million in 2017, $6.5 million in 2016 and $6.0 million in 2015 is included in net income on the Company’s consolidated statements of operations. In addition, the amount of consolidated net income attributable to both the Company and noncontrolling interest are shown on the Company’s consolidated statements of operations. Noncontrolling interest is included in the equity section of the Company’s consolidated balance sheets and totaled $92.2 million on December 31, 2017 and $85.9 million on January 1, 2017. The Company has agreed to provide financing to Piedmont up to $100.0 million under an agreement that expires on December 31, 2019 with automatic one-year renewal periods unless either the Company or Piedmont provides 10 days’ prior written notice of cancellation to the other party before any such one-year renewal period begins. Piedmont pays the Company interest on its borrowings at the Company’s average monthly cost of borrowing, taking into account all indebtedness of the Company and its consolidated subsidiaries, as determined as of the last business day of each calendar month plus 0.5%. There were no amounts outstanding under this agreement at December 31, 2017. Piedmont has agreed to provide financing to the Company up to $200.0 million under an agreement that expires December 31, 2022 with automatic one-year renewal periods unless a demand for payment of any amount borrowed by the Company is made by Piedmont prior to any such termination date. Borrowings under the revolving loan agreement bear interest on a monthly basis at a rate that is the average rate for the month on A1/P1-rated commercial paper with a 30-day maturity, which was 1.47% at December 31, 2017. There was $111.8 million outstanding under this agreement as of December 31, 2017. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | 3. Acquisitions and Divestitures As part of The Coca‑Cola Company’s plans to refranchise its North American bottling territories, the Company recently concluded a series of transactions from April 2013 to October 2017 with The Coca‑Cola Company, CCR and United to significantly expand the Company’s distribution and manufacturing operations (the “System Transformation”). The System Transformation included acquisition and exchange of rights to serve Expansion Territories and related distribution assets, as well as the acquisition and exchange of Expansion Facilities and related manufacturing assets. A summary of the System Transformation transactions (the “System Transformation Transactions”) completed by the Company prior to 2017 is included in the Company’s Annual Report on Form 10‑K for 2016. During 2017, the Company closed the following System Transformation Transactions: System Transformation Transactions Completed in 2017 System Transformation Transactions completed with CCR in 2017 Anderson, Fort Wayne, Lafayette, South Bend and Terre Haute, Indiana Expansion Territories ( On January 27, 2017, the Company acquired distribution rights and related assets in Expansion Territories previously served by CCR through CCR’s facilities and equipment located in Anderson, Fort Wayne, Lafayette, South Bend and Terre Haute, Indiana, pursuant to a distribution asset purchase agreement entered into by the Company and CCR on September 1, 2016 (the “September 2016 Distribution APA”). The Company completed the January 2017 Transaction for a cash purchase price of $32.1 million, which includes all post-closing adjustments. The cash purchase price increased $0.5 million as a result of post-closing adjustments made during 2017. Acquisition of Bloomington and Indianapolis, Indiana and Columbus and Mansfield, Ohio Expansion Territories and Indianapolis and Portland, Indiana Expansion Facilities (“March 2017 Transactions”) On March 31, 2017, the Company acquired (i) distribution rights and related assets in Expansion Territories previously served by CCR through CCR’s facilities and equipment located in Indianapolis and Bloomington, Indiana and Columbus and Mansfield, Ohio pursuant to the September 2016 Distribution APA and (ii) two Expansion Facilities located in Indianapolis and Portland, Indiana and related manufacturing assets pursuant to a manufacturing asset purchase agreement entered into by the Company and CCR on September 1, 2016 (the “September 2016 Manufacturing APA”). The Company completed the March 2017 Transactions for a cash purchase price of $104.6 million, which includes all post-closing adjustments. The cash purchase price decreased $4.1 million as a result of post-closing adjustments made during 2017. Acquisition of Akron, Elyria, Toledo, Willoughby and Youngstown, Ohio Expansion Territories and Twinsburg, Ohio Expansion Facility (“April 2017 Transactions”) On April 28, 2017, the Company acquired (i) distribution rights and related assets in Expansion Territories previously served by CCR through CCR’s facilities and equipment located in Akron, Elyria, Toledo, Willoughby and Youngstown, Ohio pursuant to a distribution asset purchase agreement entered into by the Company and CCR on April 13, 2017 (the “April 2017 Distribution APA”) and (ii) an Expansion Facility located in Twinsburg, Ohio and related manufacturing assets pursuant to a manufacturing asset purchase agreement entered into by the Company and CCR on April 13, 2017 (the “April 2017 Manufacturing APA”). The Company completed the April 2017 Transactions for a cash purchase price of $87.9 million. During the fourth quarter of 2017, the cash purchase price for the April 2017 Transactions decreased by $4.7 million as a result of net working capital and other fair value adjustments, which remains due from The Coca‑Cola Company. The cash purchase price for the April 2017 Transactions remains subject to post-closing adjustment in accordance with the April 2017 Distribution APA and the April 2017 Manufacturing APA. Acquisition of Arkansas Expansion Territories and Memphis, Tennessee and West Memphis, Arkansas Expansion Facilities in exchange for the Company’s Deep South and Somerset Distribution Territories and Mobile, Alabama Manufacturing Facility (the “CCR Exchange Transaction”) On October 2, 2017, the Company (i) acquired from CCR distribution rights and related assets in Expansion Territories previously served by CCR through CCR’s facilities and equipment located in central and southern Arkansas and two Expansion Facilities located in Memphis, Tennessee and West Memphis, Arkansas and related manufacturing assets (collectively, the “CCR Exchange Business”) in exchange for which the Company (ii) transferred to CCR distribution rights and related assets in territories previously served by the Company through its facilities and equipment located in portions of southern Alabama, southeastern Mississippi, southwestern Georgia and northwestern Florida and in and around Somerset, Kentucky and a regional manufacturing facility located in Mobile, Alabama and related manufacturing assets (collectively, the “Deep South and Somerset Exchange Business”), pursuant to an asset exchange agreement entered into by the Company, certain of its wholly-owned subsidiaries and CCR on September 29, 2017 (the “CCR AEA”). During 2017, the Company paid CCR $15.9 million toward the closing of the CCR Exchange Transaction, representing an estimate of the difference between the value of the CCR Exchange Business acquired by the Company and the value of the Deep South and Somerset Exchange Business acquired by CCR. During the fourth quarter of 2017, the Company recorded certain adjustments to this settlement amount as a result of changes in estimated net working capital and other fair value adjustments, which are included in accounts payable to The Coca‑Cola Company. The final closing price for the CCR Exchange Transaction remains subject to final resolution pursuant to the CCR AEA. The payment for the CCR Exchange Transaction reflected the application of $4.8 million of the Expansion Facilities Discount (as described below). Acquisition of Memphis, Tennessee Expansion Territories (“Memphis Transaction”) On October 2, 2017, the Company acquired distribution rights and related assets in Expansion Territories previously served by CCR through CCR’s facilities and equipment located in and around Memphis, Tennessee, including portions of northwestern Mississippi and eastern Arkansas, pursuant to an asset purchase agreement entered by the Company and CCR on September 29, 2017 (the “September 2017 APA”). The Company completed this acquisition for a cash purchase price of $39.6 million, which remains subject to post-closing adjustment in accordance with the September 2017 APA. System Transformation Transactions completed with United in 2017 Acquisition of Spartanburg and Bluffton, South Carolina Expansion Territories in exchange for the Company’s Florence and Laurel Territories and Piedmont’s Northeastern Georgia Territories (“United Exchange Transaction”) On October 2, 2017, the Company and Piedmont completed exchange transactions in which (i) the Company acquired from United distribution rights and related assets in Expansion Territories previously served by United through United’s facilities and equipment located in and around Spartanburg, South Carolina and a portion of United’s territory located in and around Bluffton, South Carolina and Piedmont acquired from United similar rights, assets and liabilities, and working capital in the remainder of United’s Bluffton, South Carolina territory (collectively, the “United Distribution Business”), in exchange for which (ii) the Company transferred to United distribution rights and related assets in territories previously served by the Company through its facilities and equipment located in parts of northwestern Alabama, south-central Tennessee and southeastern Mississippi previously served by the Company’s distribution centers located in Florence, Alabama and Laurel, Mississippi (collectively, the “Florence and Laurel Distribution Business”) and Piedmont transferred to United similar rights, assets and liabilities, and working capital of Piedmont’s in territory located in parts of northeastern Georgia (the “Northeastern Georgia Distribution Business”), pursuant to an asset exchange agreement between the Company, certain of its wholly-owned subsidiaries and United dated September 29, 2017 (the “United AEA”) and an asset exchange agreement between Piedmont and United dated September 29, 2017 (the “Piedmont – United AEA”). At closing, the Company and Piedmont paid United $3.4 million toward the closing of the United Exchange Transaction, representing an estimate of (i) the difference between the value of the portion of the United Distribution Business acquired by the Company and the value of the Florence and Laurel Distribution Business acquired by United, plus (ii) the difference between the value of the portion of the United Distribution Business acquired by Piedmont and the value of the Northeastern Georgia Distribution Business acquired by United, which such amounts remain subject to final resolution pursuant to the United AEA and the Piedmont – United AEA, respectively. Expansion Facilities Discount and Legacy Facilities Credit Letter Agreement In connection with the Company’s acquisitions of the Expansion Facilities and the impact on transaction value from certain adjustments made by The Coca‑Cola Company pursuant to a regional manufacturing agreement with The Coca‑Cola Company entered into on March 31, 2017 (as amended, the “RMA”) to the authorized pricing on sales of certain beverages produced by the Company under trademarks of The Coca‑Cola Company at the Expansion Facilities and sold to The Coca‑Cola Company and certain U.S. Coca‑Cola bottlers, the Company and The Coca‑Cola Company also entered into a letter agreement on March 31, 2017 (as amended, the “Manufacturing Facilities Letter Agreement”), pursuant to which The Coca‑Cola Company agreed to provide the Company with an aggregate valuation adjustment discount of $33.1 million (the “Expansion Facilities Discount”) on the purchase prices for the Expansion Facilities. The parties agreed to apply $22.9 million of the total Expansion Facilities Discount upon the Company’s acquisition of Expansion Facilities in March 2017 and agreed to apply an additional $5.4 million of the total Expansion Facilities Discount upon the Company’s acquisition of an Expansion Facility in April 2017. The parties agreed to apply the remaining $4.8 million of the total Expansion Facilities Discount upon the Company’s acquisition of two additional Expansion Facilities as part of the CCR Exchange Transaction, after which time no amounts remain outstanding under the Manufacturing Facilities Letter Agreement. The Manufacturing Facilities Letter Agreement also establishes a mechanism to compensate the Company with a payment or credit for the net economic impact to the manufacturing facilities the Company served prior to the System Transformation (the “Legacy Facilities”) of the changes made by The Coca‑Cola Company to the authorized pricing under the RMA on sales of certain Coca‑Cola products produced by the Company at the Legacy Facilities and sold to The Coca‑Cola Company and certain U.S. Coca‑Cola bottlers versus the Company’s historical returns for products produced at the Legacy Facilities prior to the conversion on March 31, 2017 of the Company’s then-existing manufacturing agreements with The Coca‑Cola Company to the RMA (the “Legacy Facilities Credit”). The Company and The Coca‑Cola Company agreed that the amount of the Legacy Facilities Credit to be paid to the Company by The Coca‑Cola Company was $43.0 million, pursuant to a letter agreement between the Company and The Coca‑Cola Company dated December 26, 2017. The Coca‑Cola Company paid the Legacy Facilities Credit, in the amount of $43.0 million, to the Company in December 2017. The Company recognized $12.4 million of the Legacy Facilities Credit during 2017, representing the portion of the credit applicable to the Mobile, Alabama facility which the Company transferred to CCR as part of the CCR Exchange Transaction. The $12.4 million portion of the Legacy Facilities Credit related to the Mobile, Alabama facility was recorded to gain (loss) on exchange transactions in the Company’s consolidated financial statements. The remaining $30.6 million of the Legacy Facilities Credit was recorded as a deferred liability and will be amortized as a reduction to cost of sales over a period of 40 years. Gain on Exchange Transactions Upon closing the CCR Exchange Transaction and the United Exchange Transaction, the fair value of net assets acquired exceeded the carrying value of net assets exchanged, which resulted in a gain of $0.5 million recorded to gain (loss) on exchange transactions in the Company’s consolidated financial statements. This amount remains subject to final resolution pursuant to the CCR AEA, the United AEA and the Piedmont – United AEA. The $0.5 million gain on the CCR Exchange Transaction and the United Exchange Transaction, combined with the $12.4 million portion of the Legacy Facilities Credit related to the Mobile, Alabama facility, resulted in a total gain on exchange transactions of $12.9 million in 2017. The fair value of acquired assets and assumed liabilities in the 2017 System Transformation Transactions as of the acquisition dates is summarized as follows: (in thousands) January 2017 Transaction March 2017 Transactions April 2017 Transactions October 2017 Transactions Acquisitions Total 2017 Transactions Cash $ 107 $ 211 $ 103 $ 191 $ 612 Inventories 5,953 20,952 14,554 14,850 56,309 Prepaid expenses and other current assets 1,155 5,117 4,068 4,754 15,094 Accounts receivable from The Coca-Cola Company 1,042 1,807 2,552 2,391 7,792 Property, plant and equipment 25,708 81,638 52,263 70,645 230,254 Other assets (including deferred taxes) 1,158 3,227 4,369 889 9,643 Goodwill 1,544 2,527 17,804 13,992 35,867 Distribution agreements 22,000 46,750 19,500 124,750 213,000 Customer lists 1,500 1,750 1,000 4,950 9,200 Total acquired assets $ 60,167 $ 163,979 $ 116,213 $ 237,412 $ 577,771 Current liabilities (acquisition related contingent consideration) $ 1,350 $ 2,958 $ 1,546 $ 1,458 $ 7,312 Other current liabilities 324 3,760 2,860 6,492 13,436 Other liabilities (acquisition related contingent consideration) 26,377 49,739 26,604 18,848 121,568 Other liabilities 43 2,953 2,005 95 5,096 Total assumed liabilities $ 28,094 $ 59,410 $ 33,015 $ 26,893 $ 147,412 As part of the “October 2017 Transactions Acquisitions,” which include the Expansion Territories and the Expansion Facilities acquired in the CCR Exchange Transaction (the “CCR Exchange Transaction Acquisitions”), the Memphis Transaction and the United Exchange Transaction (the “United Exchange Transaction Acquisitions”), the Company’s acquired assets and assumed liabilities as of the acquisition dates are summarized as follows: (in thousands) CCR Exchange Transaction Acquisitions Memphis Transaction United Exchange Transaction Acquisitions October 2017 Transactions Acquisitions Cash $ 91 $ 100 $ - $ 191 Inventories 10,667 3,354 829 14,850 Prepaid expenses and other current assets 3,218 1,222 314 4,754 Accounts receivable from The Coca-Cola Company 1,092 1,089 210 2,391 Property, plant and equipment 47,066 20,795 2,784 70,645 Other assets (including deferred taxes) 624 265 - 889 Goodwill 6,378 4,917 2,697 13,992 Distribution agreements 80,500 30,300 13,950 124,750 Customer lists 3,200 1,200 550 4,950 Total acquired assets $ 152,836 $ 63,242 $ 21,334 $ 237,412 Current liabilities (acquisition related contingent consideration) $ - $ 1,458 $ - $ 1,458 Other current liabilities 2,760 3,241 491 6,492 Other liabilities (acquisition related contingent consideration) - 18,848 - 18,848 Other liabilities 1 94 - 95 Total assumed liabilities $ 2,761 $ 23,641 $ 491 $ 26,893 The goodwill for the 2017 System Transformation Transactions is included in the Nonalcoholic Beverages segment and is primarily attributed to operational synergies and the workforce acquired. Goodwill of $11.6 million, $6.4 million, $6.6 million and $2.7 million is expected to be deductible for tax purposes for the April 2017 Transactions, the CCR Exchange Transaction Acquisitions, the Memphis Transaction and the United Exchange Transaction Acquisitions, respectively. No goodwill is expected to be deductible for tax purposes for the January 2017 Transaction or the March 2017 Transactions. Identifiable intangible assets acquired by the Company in the 2017 System Transformation Transactions consist of distribution agreements and customer lists, which have an estimated useful life of 40 years and 12 years, respectively. The Company has preliminarily allocated the purchase prices of the April 2017 Transactions, the CCR Exchange Transaction, the Memphis Transaction and the United Exchange Transaction to the individual acquired assets and assumed liabilities. The valuations are subject to adjustment as additional information is obtained. Any adjustments made beyond one year from each transaction’s acquisition date are recorded through the Company’s consolidated statements of operations. The carrying value of assets and liabilities in the Deep South and Somerset Exchange Business divested in the CCR Exchange Transaction and the Florence and Laurel Distribution Business divested in the United Exchange Transaction (together, the “October 2017 Divestitures”) are summarized as follows: (in thousands) October 2017 Divestitures Cash $ 303 Inventories 13,717 Prepaid expenses and other current assets 1,199 Property, plant and equipment 44,380 Other assets (including deferred taxes) 604 Goodwill 13,073 Distribution agreements 65,043 Total divested assets $ 138,319 Other current liabilities $ 5,683 Pension and postretirement benefit obligations 16,855 Total divested liabilities $ 22,538 The October 2017 Divestitures were recorded in the Company’s Nonalcoholic Beverages segment prior to divestiture. System Transformation Transactions Completed in 2016 During 2016, the Company acquired from CCR distribution rights and related assets for the following Expansion Territories: Easton, Salisbury, Capitol Heights, La Plata, Baltimore, Hagerstown and Cumberland, Maryland; Richmond, Yorktown and Alexandria, Virginia; Cincinnati, Dayton, Lima and Portsmouth, Ohio; and Louisa, Kentucky. The Company also acquired Expansion Facilities and related manufacturing assets in Sandston, Virginia; Silver Spring and Baltimore, Maryland; and Cincinnati, Ohio during 2016. Collectively, these are the “2016 System Transformation Transactions.” Details of the 2016 System Transformation Transactions are included below. Easton and Salisbury, Maryland and Richmond and Yorktown, Virginia Expansion Territories Acquisitions and Sandston, Virginia Expansion Facility Acquisition (“January 2016 Transactions”) An asset purchase agreement entered into by the Company and CCR in September 2015 (the “September 2015 APA”) contemplated, in part, the Company’s acquisition of distribution rights and related assets in Expansion Territories previously served by CCR through CCR’s facilities and equipment located in Easton and Salisbury, Maryland and Richmond and Yorktown, Virginia. In addition, an asset purchase agreement entered into by the Company and CCR in October 2015 (the “October 2015 APA”) contemplated, in part, the Company’s acquisition of an Expansion Facility and related manufacturing assets in Sandston, Virginia. The closing of the January 2016 Transactions occurred on January 29, 2016. The cash purchase price for the January 2016 Transactions was $75.9 million, which includes all post-closing adjustments. Of the total cash purchase price, $10.2 million was settled beyond one year from the transaction closing date and was recorded as other expense on the Company’s consolidated statements of operations. Alexandria, Virginia and Capitol Heights and La Plata, Maryland Territories Acquisitions (“April 1, 2016 Transaction”) The September 2015 APA also contemplated the Company’s acquisition of distribution rights and related assets in Expansion Territories previously served by CCR through CCR’s facilities and equipment located in Alexandria, Virginia and Capitol Heights and La Plata, Maryland. The closing of the April 1, 2016 Transaction occurred on April 1, 2016. The cash purchase price for the April 1, 2016 Transaction was $34.8 million, which includes all post-closing adjustments. Of the total cash purchase price, $0.8 million was settled beyond one year from the transaction closing date and was recorded as other income on the Company’s consolidated statements of operations. Baltimore, Hagerstown and Cumberland, Maryland Expansion Territories Acquisitions and Silver Spring and Baltimore, Maryland Expansion Facilities Acquisitions (“April 29, 2016 Transactions”) On April 29, 2016, the Company completed the remaining transactions contemplated by (i) the September 2015 APA, by acquiring distribution rights and related assets in Expansion Territories previously served by CCR through CCR’s facilities and equipment located in Baltimore, Hagerstown and Cumberland, Maryland, and (ii) the October 2015 APA, by acquiring Expansion Facilities and related manufacturing assets in Silver Spring and Baltimore, Maryland. The cash purchase price for the April 29, 2016 Transactions was $68.5 million, which includes all post-closing adjustments. Of the total cash purchase price, $0.5 million was settled beyond one year from the transaction closing date and was recorded as other income on the Company’s consolidated statements of operations. Cincinnati, Dayton, Lima and Portsmouth, Ohio and Louisa, Kentucky Expansion Territories Acquisitions and Cincinnati, Ohio Expansion Facility Acquisition (“October 2016 Transactions”) On October 28, 2016, the Company completed the initial transactions contemplated by (i) the September 2016 Distribution APA, by acquiring distribution rights and related assets in Expansion Territories previously served by CCR through CCR’s facilities and equipment located in Cincinnati, Dayton, Lima and Portsmouth, Ohio and Louisa, Kentucky, and (ii) the September 2016 Manufacturing APA, by acquiring an Expansion Facility and related manufacturing assets located in Cincinnati, Ohio. The closing of the October 2016 Transactions occurred for a cash purchase price of $99.7 million, which includes all post-closing adjustments. The cash purchase price increased $1.5 million as a result of post-closing adjustments made during 2017. The fair value of acquired assets and assumed liabilities of the 2016 System Transformation Transactions as of the acquisition dates is summarized as follows: (in thousands) January 2016 Transactions April 1, 2016 Transaction April 29, 2016 Transactions October 2016 Transactions Total 2016 Transactions Cash $ 179 $ 219 $ 161 $ 150 $ 709 Inventories 10,159 3,748 13,850 18,513 46,270 Prepaid expenses and other current assets 2,775 1,945 3,774 4,228 12,722 Accounts receivable from The Coca-Cola Company 1,121 1,162 1,126 1,327 4,736 Property, plant and equipment 46,149 54,135 57,738 67,943 225,965 Other assets (including deferred taxes) 2,351 1,541 5,514 682 10,088 Goodwill 9,396 1,962 8,368 8,473 28,199 Distribution agreements 750 - 22,000 79,900 102,650 Customer lists 550 - 1,450 2,750 4,750 Total acquired assets $ 73,430 $ 64,712 $ 113,981 $ 183,966 $ 436,089 Current liabilities (acquisition related contingent consideration) $ 361 $ 742 $ 1,307 $ 3,973 $ 6,383 Other current liabilities 591 4,231 5,482 8,513 18,817 Accounts payable to The Coca-Cola Company 650 - - - 650 Other liabilities (acquisition related contingent consideration) 6,144 23,924 35,561 71,237 136,866 Other liabilities - 266 2,635 573 3,474 Total assumed liabilities $ 7,746 $ 29,163 $ 44,985 $ 84,296 $ 166,190 The goodwill for the 2016 System Transformation Transactions is all included in the Nonalcoholic Beverages segment and is primarily attributed to operational synergies and the workforce acquired. Goodwill of $14.9 million and $15.8 million is expected to be deductible for tax purposes for the January 2016 Transactions and October 2016 Transactions, respectively. No goodwill is expected to be deductible for the April 1, 2016 Transaction or the April 29, 2016 Transactions. System Transformation Transactions Completed in 2015 During 2015, the Company acquired from CCR distribution rights and related assets for the following Expansion Territories: Cleveland and Cookeville, Tennessee; Louisville, Kentucky and Evansville, Indiana; Paducah and Pikeville, Kentucky; Norfolk, Fredericksburg and Staunton, Virginia; and Elizabeth City, North Carolina and acquired a make-ready center in Annapolis, Maryland (the “2015 Expansion Territories”). In 2015, the Company also acquired from CCR distribution rights and related assets for distribution territory in Lexington, Kentucky in exchange for distribution territory previously served by the Company in Jackson, Tennessee (the “2015 Asset Exchange”). The aggregate cash purchase price for the 2015 Expansion Territories and the 2015 Asset Exchange was $85.6 million, which includes all post-closing adjustments. The Company recognized a gain of $8.1 million as a result of the 2015 Asset Exchange, which was recorded to gain (loss) on exchange transactions System Transformation Transactions Completed in 2014 During 2014, the Company acquired from CCR distribution rights and related assets for the following Expansion Territories: Johnson City, Knoxville and Morristown, Tennessee (the “2014 Expansion Territories”). The aggregate cash purchase price for the 2014 Expansion Territories was $43.1 million, which includes all post-closing adjustments. System Transformation Transactions Financial Results The financial results of the 2017 System Transformation Transactions, the 2016 System Transformation Transactions, the 2015 Expansion Territories and the 2015 Asset Exchange Fiscal Year (in thousands) 2017 2016 2015 Net sales from 2015 Expansion Territories & 2015 Asset Exchange $ 484,485 $ 469,440 $ 278,691 Net sales from 2016 System Transformation Transactions 1,011,638 592,329 - Net sales from 2017 System Transformation Transactions 740,259 - - Total System Transformation Transactions impact to net sales $ 2,236,382 $ 1,061,769 $ 278,691 Income from operations from 2015 Expansion Territories & 2015 Asset Exchange $ 1,540 $ 1,907 $ 3,364 Income from operations from 2016 System Transformation Transactions 18,930 22,373 - Income from operations from 2017 System Transformation Transactions 10,754 - - Total System Transformation Transactions impact to income from operations $ 31,224 $ 24,280 $ 3,364 The Company incurred transaction related expenses for these System Transformation Transactions of $6.8 million in 2017, $6.1 million in 2016 and $5.8 million in 2015. These expenses are included within selling, delivery and administrative expenses on the consolidated statements of operations. 2017 System Transformation Transactions and 2016 System Transformation Transactions Pro Forma Financial Information The purpose of the pro forma disclosures is to present the net sales and the income from operations of the combined entity as though the 2017 System Transformation Transactions and the 2016 System Transformation Transactions had occurred as of the beginning of 2016. The pro forma combined net sales and income from operations do not necessarily reflect what the combined Company’s net sales and income from operations would have been had the acquisitions occurred at the beginning of 2016. The pro forma financial information also may not be useful in predicting the future financial results of the combined company. The actual results may differ significantly from the pro forma amounts reflected herein due to a variety of factors. The following tables represent the Company’s unaudited pro forma net sales and unaudited pro forma income from operations for the 2017 System Transformation Transactions and the 2016 System Transformation Transactions. Fiscal Year (in thousands) 2017 2016 Net sales as reported $ 4,323,668 $ 3,156,428 Pro forma adjustments (unaudited) 196,224 1,153,358 Net sales pro forma (unaudited) $ 4,519,892 $ 4,309,786 Fiscal Year (in thousands) 2017 2016 Income from operations as reported $ 96,179 $ 127,859 Pro forma adjustments (unaudited) 5,391 76,906 Income from operations pro forma (unaudited) $ 101,570 $ 204,765 The net sales pro forma and the income from operations pro forma reflect adjustments for (i) the inclusion of historic results of operations for the Expansion Territories and the Expansion Facilities acquired in the System Transformation Transactions for the period prior to the Company’s acquisition of the applicable territories or facility, for each year presented, (ii) the elimination of historic results of operations for the October 2017 Divestitures for the period prior to the Company’s divestiture of the associated Expansion Territories and Expansion Facility and (iii) the elimination of net sales made in the normal course of business between the Company and the selling entity (CCR or United) involved in the applicable System Transformation Transactions. In addition, the income from operations pro forma reflects adjustments for the elimination of cost of sales associated with intercompany sales and an adjustment for additional depreciation expense and amortization expense for property, plant and equipment and intangible assets, respectively, as a result of the change in fair value of the assets’ useful lives upon acquisition. Sale of BYB Brands, Inc. On August 24, 2015, the Company sold BYB Brands, Inc. (“BYB”), a wholly-owned subsidiary of the Company to The Coca‑Cola Company. Pursuant to the stock purchase agreement dated July 22, 2015, the Company sold all issued and outstanding shares of capital stock of BYB for a cash purchase price of $26.4 million. As a result of the sale, the Company recognized a gain of $22.7 million in 2015, which was recorded to gain on sale of business in the consolidated financial statements. BYB contributed the following amounts to the Company’s consolidated statement of operations: (in thousands) 2015 Net sales $ 23,875 Income from operations 1,809 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories Inventories consisted of the following: (in thousands) December 31, 2017 January 1, 2017 Finished products $ 116,354 $ 90,259 Manufacturing materials 33,073 23,196 Plastic shells, plastic pallets and other inventories 34,191 30,098 Total inventories $ 183,618 $ 143,553 The growth in the inventories balance at December 31, 2017, as compared to January 1, 2017, is primarily a result of inventory acquired through the completion of the 2017 System Transformation Transactions. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2017 | |
Prepaid Expense And Other Assets [Abstract] | |
Prepaid Expenses and Other Current Assets | 5. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: (in thousands) December 31, 2017 January 1, 2017 Current portion of income taxes $ 35,930 $ 21,227 Repair parts 30,530 20,338 Prepayments for sponsorships 6,358 1,879 Prepaid software 5,855 5,331 Commodity hedges at fair market value 4,420 1,289 Other prepaid expenses and other current assets 17,553 13,770 Total prepaid expenses and other current assets $ 100,646 $ 63,834 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | 6. Property, Plant and Equipment The principal categories and estimated useful lives of property, plant and equipment, net were as follows: Estimated (in thousands) December 31, 2017 January 1, 2017 Useful Lives Land $ 78,825 $ 68,541 Buildings 211,308 201,247 8-50 years Machinery and equipment 315,117 229,119 5-20 years Transportation equipment 351,479 316,929 4-20 years Furniture and fixtures 89,559 78,219 3-10 years Cold drink dispensing equipment 488,208 484,771 5-17 years Leasehold and land improvements 125,348 112,393 5-20 years Software for internal use 113,490 105,405 3-10 years Construction in progress 25,490 14,818 Total property, plant and equipment, at cost 1,798,824 1,611,442 Less: Accumulated depreciation and amortization 767,436 798,453 Property, plant and equipment, net $ 1,031,388 $ 812,989 Depreciation expense, which includes amortization expense for leased property under capital leases, was $150.4 million in 2017, $111.6 million in 2016 and $78.1 million in 2015. During 2017, 2016 and 2015, the Company performed periodic reviews of property, plant and equipment and determined no material impairment existed. |
Leased Property Under Capital L
Leased Property Under Capital Leases | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Leased Property Under Capital Leases | 7. Leased Property Under Capital Leases Leased property under capital leases, which consisted of real estate and have an estimated useful life of 3 to 20 years, were as following: (in thousands) December 31, 2017 January 1, 2017 Leased property under capital leases $ 95,870 $ 94,125 Less: Accumulated amortization 66,033 60,573 Leased property under capital leases, net $ 29,837 $ 33,552 As of December 31, 2017 $15.1 million of the leased property under capital leases was from related party transactions as discussed in Note 22 to the consolidated financial statements. |
Franchise Rights
Franchise Rights | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Franchise Rights | 8. Franchise Rights A reconciliation of the activity for franchise rights for 2017 and 2016 is as follows: Fiscal Year (in thousands) 2017 2016 Beginning balance - franchise rights $ 533,040 $ 527,540 Conversion from franchise rights to distribution rights (533,040 ) - 2015 Asset Exchange - 5,500 Ending balance - franchise rights $ - $ 533,040 In connection with the closing of the March 2017 Transactions, the Company, The Coca-Cola Company and CCR entered into a comprehensive beverage agreement (as amended, the “CBA”) on March 31, 2017, and concurrently converted the Company’s franchise rights within the territories in which the Company distributed Coca‑Cola products prior to beginning the System Transformation (the “Legacy Territories”) to distribution agreements, net on the consolidated financial statements. Prior to this conversion, the Company’s franchise rights resided entirely within the Nonalcoholic Beverage segment. During the second quarter of 2016, the Company recorded $5.5 million in franchise rights for the 2015 Asset Exchange. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 9. Goodwill A reconciliation of the activity for goodwill for 2017 and 2016 is as follows: Fiscal Year (in thousands) 2017 2016 Beginning balance - goodwill $ 144,586 $ 117,954 System Transformation Transactions acquisitions (1) 35,867 26,272 October 2017 Divestitures (13,073 ) - 2015 Asset Exchange - (682 ) Measurement period adjustments (2) 1,936 1,042 Ending balance - goodwill $ 169,316 $ 144,586 (1) (2) The Company’s goodwill resides entirely within the Nonalcoholic Beverage segment. The Company performed its annual impairment test of goodwill as of the first day of the fourth quarter of 2017, 2016 and 2015 and determined there was no impairment of the carrying value of these assets. |
Distribution Agreements, Net
Distribution Agreements, Net | 12 Months Ended |
Dec. 31, 2017 | |
Distribution Agreements [Member] | |
Other Identifiable Intangible Assets Net | 10. Distribution Agreements, Net Distribution agreements, net, which are amortized on a straight line basis and have an estimated useful life of 20 to 40 years, consisted of the following: (in thousands) December 31, 2017 January 1, 2017 Distribution agreements at cost $ 939,527 $ 242,486 Less: Accumulated amortization 26,175 7,498 Distribution agreements, net $ 913,352 $ 234,988 A reconciliation of the activity for distribution agreements, net for 2017 and 2016 is as follows: Fiscal Year (in thousands) 2017 2016 Beginning balance - distribution agreements, net $ 234,988 $ 129,786 Conversion to distribution rights from franchise rights 533,040 - System Transformation Transactions acquisitions (1) 213,000 86,650 October 2017 Divestitures (65,043 ) - Measurement period adjustment (2) 16,000 - Glacéau Distribution Agreement - 21,032 Other distribution agreements 44 1,695 Additional accumulated amortization (18,677 ) (4,175 ) Ending balance - distribution agreements, net $ 913,352 $ 234,988 (1) (2) Concurrent with its entrance into the CBA in the first quarter of 2017, the Company converted its franchise rights for the Legacy Territories to distribution rights, with an estimated useful life of 40 years. Assuming no impairment of distribution agreements, net, amortization expense in future years based upon recorded amounts as of December 31, 2017 will be $23.6 million for each year 2018 through 2022. |
Customer Lists and Other Identi
Customer Lists and Other Identifiable Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2017 | |
Customer Lists and Other Identifiable Intangible Assets [Member] | |
Other Identifiable Intangible Assets Net | 11. Customer Lists and Other Identifiable Intangible Assets, Net Customer lists and other identifiable intangible assets, net, which are amortized on a straight line basis and have an estimated useful life of 12 to 20 years, consisted of the following: (in thousands) December 31, 2017 January 1, 2017 Customer lists and other identifiable intangible assets at cost $ 25,288 $ 15,938 Less: Accumulated amortization 6,968 5,511 Customer lists and other identifiable intangible assets, net $ 18,320 $ 10,427 A reconciliation of the activity for customer lists and other identifiable intangible assets, net for 2017 and 2016 is as follows: Fiscal Year (in thousands) 2017 2016 Beginning balance - customer lists and other identifiable intangible assets, net $ 10,427 $ 6,662 System Transformation Transactions acquisitions (1) 9,200 4,600 Measurement period adjustment (2) 150 - Additional accumulated amortization (1,457 ) (835 ) Ending balance - customer lists and other identifiable intangible assets, net $ 18,320 $ 10,427 (1) (2) Assuming no impairment of customer lists and other identifiable intangible assets, net, amortization expense in future years based upon recorded amounts as of December 31, 2017 will be $1.8 million for each year 2018 through 2022. |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Payables And Accruals [Abstract] | |
Other Accrued Liabilities | 12. Other Accrued Liabilities Other accrued liabilities consisted of the following: (in thousands) December 31, 2017 January 1, 2017 Checks and transfers yet to be presented for payment from zero balance cash accounts $ 37,262 $ 19,326 Accrued insurance costs 35,433 28,248 Accrued marketing costs 33,376 24,714 Employee and retiree benefit plan accruals 27,024 23,858 Current portion of acquisition related contingent consideration 23,339 15,782 Accrued taxes (other than income taxes) 6,391 2,836 Current deferred proceeds from bottling agreements conversion 2,286 - All other accrued expenses 20,419 19,121 Total other accrued liabilities $ 185,530 $ 133,885 See Note 22 to the consolidated financial statements for additional information on the proceeds from the bottling agreements conversion. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | 13. Debt Following is a summary of the Company’s debt: (in thousands) Maturity Interest Rate Interest Paid Public / Non-public December 31, 2017 January 1, 2017 Revolving credit facility 2019 Variable Varies Non-public $ 207,000 $ 152,000 Term Loan 2021 Variable Varies Non-public 300,000 300,000 Senior Notes 2023 3.28% Semi-annually Non-public 125,000 - Senior Notes 2019 7.00% Semi-annually Public 110,000 110,000 Senior Notes 2025 3.80% Semi-annually Public 350,000 350,000 Unamortized discount on Senior Notes (1) 2019 (332 ) (570 ) Unamortized discount on Senior Notes (1) 2025 (70 ) (78 ) Debt issuance costs (3,580 ) (4,098 ) Total debt 1,088,018 907,254 Less: Current portion of debt - - Long-term debt $ 1,088,018 $ 907,254 (1) The Senior Notes due 2019 were issued at 98.238% of par and the Senior Notes due 2025 were issued at 99.975% of par. The principal maturities of debt outstanding on December 31, 2017 were as follows: (in thousands) Debt Maturities 2018 $ 15,000 2019 347,000 2020 37,500 2021 217,500 2022 - Thereafter 475,000 Total debt $ 1,092,000 Under the Company’s Term Loan Facility (as defined below), $15 million will become due in fiscal 2018. The Company intends to repay this amount through use of its Revolving Credit Facility (as defined below), which is classified as long-term debt. As such, the $15 million has been classified as non-current as of December 31, 2017. The Company had capital lease obligations of $43.5 million on December 31, 2017 and $48.7 million on January 1, 2017. 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 February 27, 2017, the Company sold $125 million aggregate principal amount of senior unsecured notes due 2023 to PGIM, Inc. (“Prudential”) and certain of its affiliates pursuant to the Note Purchase and Private Shelf Agreement dated June 10, 2016 between the Company, Prudential and the other parties thereto (the “Private Shelf Facility”). These notes bear interest at 3.28%, payable semi-annually in arrears on February 27 and August 27 of each year, and will mature on February 27, 2023 unless earlier redeemed by the Company. The Company may request that Prudential consider the purchase of additional senior unsecured notes of the Company under the Private Shelf Facility in an aggregate principal amount of up to $175 million. In October 2014, the Company entered into a five-year unsecured revolving credit facility (the “Revolving Credit Facility”), and in April 2015, the Company exercised an accordion feature which established a $450 million aggregate maximum borrowing capacity on the Revolving Credit Facility. The $450 million borrowing capacity includes up to $50 million available for the issuance of letters of credit. Borrowings under the Revolving Credit Facility bear interest at a floating base rate or a floating Eurodollar rate plus an applicable margin, at the Company’s option, dependent on the Company’s credit ratings at the time of borrowing. At the Company’s current credit ratings, the Company must pay an annual facility fee of 0.15% of the lenders’ aggregate commitments under the Revolving Credit Facility. The Revolving Credit Facility has a scheduled maturity date of October 16, 2019. In June 2016, the Company entered into a five-year term loan agreement for a senior unsecured term loan facility (the “Term Loan Facility”) in the aggregate principal amount of $300 million, maturing June 7, 2021. The Company may request additional term loans under the agreement, provided the Company’s aggregate borrowings under the Term Loan Facility do not exceed $500 million. Borrowings under the Term Loan Facility bear interest at a floating base rate or a floating Eurodollar rate plus an applicable margin, at the Company’s option, dependent on the Company’s credit ratings. The Revolving Credit Facility, the Term Loan Facility and the Private Shelf Facility 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 agreements. The Company was in compliance with these covenants as of December 31, 2017. These covenants do not currently, and the Company does not anticipate they will, restrict its liquidity or capital resources. The indentures under which the Company’s public debt was issued do not include financial covenants but do limit the incurrence of certain liens and encumbrances as well as indebtedness by the Company’s subsidiaries in excess of certain amounts. All outstanding long-term debt has been issued by the Company and none has been issued by any of its subsidiaries. There are no guarantees of the Company’s debt. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 14. 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 derivative instruments. The Company does not use derivative instruments for trading or speculative purposes. All derivative instruments are recorded at fair value as either assets or liabilities in the Company’s consolidated balance sheets. These derivative instruments are not designated as hedging instruments under GAAP and are used as “economic hedges” to manage certain commodity price risk. Derivative instruments held are marked to market on a monthly basis and recognized in earnings consistent with the expense classification of the underlying hedged item. Settlements of derivative agreements are included in cash flows from operating activities on the Company’s consolidated statements of cash flows. 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 parties. The following table summarizes pre-tax changes in the fair value of the Company’s commodity derivative financial instruments and the classification of such changes in the consolidated statements of operations. Fiscal Year (in thousands) Classification of Gain (Loss) 2017 2016 2015 Commodity hedges Cost of sales $ 2,815 $ 2,896 $ (2,354 ) Commodity hedges Selling, delivery and administrative expenses 315 1,832 (1,085 ) Total gain (loss) $ 3,130 $ 4,728 $ (3,439 ) The following table summarizes the fair values and classification in the consolidated balance sheets of derivative instruments held by the Company: (in thousands) Balance Sheet Classification December 31, 2017 January 1, 2017 Assets: Commodity hedges at fair market value Prepaid expenses and other current assets $ 4,420 $ 1,289 Total assets $ 4,420 $ 1,289 The Company has master agreements with the counterparties to its derivative financial agreements 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 Company’s consolidated balance sheets and the net amounts of derivative liabilities are recognized in other accrued liabilities or other liabilities in the consolidated balance sheets. The following table summarizes the Company’s gross derivative assets and gross derivative liabilities in the consolidated balance sheets: (in thousands) December 31, 2017 January 1, 2017 Gross derivative assets $ 4,481 $ 1,297 Gross derivative liabilities 61 8 The following table summarizes the Company’s outstanding commodity derivative agreements: (in thousands) December 31, 2017 January 1, 2017 Notional amount of outstanding commodity derivative agreements $ 59,564 $ 13,146 Latest maturity date of outstanding commodity derivative agreements December 2018 December 2017 Subsequent to December 31, 2017, the Company entered into additional agreements to hedge certain commodity costs for 2018. The notional amount of these agreements was $91.7 million. Concurrently, the Company terminated certain hedge agreements for commodity costs for 2018. The notional amount of the terminated agreements was $22.6 million. |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Financial Instruments | 15. 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 following 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 Level Method and Assumptions Deferred compensation plan assets and liabilities Level 1 The fair value of the Company’s non-qualified 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 value of the securities held within the mutual funds. Commodity hedging agreements Level 2 The fair values of the Company’s commodity hedging agreements are based on current settlement values at each balance sheet date. The fair values of the commodity hedging agreements at each balance sheet date represent the estimated amounts the Company would have received or paid upon termination of these agreements. The Company’s credit risk related to the derivative financial instruments is managed by requiring high standards for its counterparties and periodic settlements. The Company considers nonperformance risk in determining the fair value of derivative financial instruments. Non-public variable rate debt Level 2 The carrying amounts of the Company’s non-public variable rate debt approximate their fair values due to variable interest rates with short reset periods. Non-public fixed rate debt Level 2 The fair values of the Company’s non-public fixed rate debt are based on estimated current market prices. Public debt securities Level 2 The fair values of the Company’s public debt securities are based on estimated current market prices. Acquisition related contingent consideration Level 3 The fair values of acquisition related contingent consideration are based on internal forecasts and the weighted average cost of capital (“WACC”) derived from market data. The following tables summarize, by assets and liabilities, the carrying amounts and fair values by level of the Company’s deferred compensation plan, commodity hedging agreements, debt and acquisition related contingent consideration: December 31, 2017 Carrying Total Fair Value Fair Value Fair Value (in thousands) Amount Fair Value Level 1 Level 2 Level 3 Assets: Deferred compensation plan assets $ 33,166 $ 33,166 $ 33,166 $ - $ - Commodity hedging agreements 4,420 4,420 - 4,420 - Liabilities: Deferred compensation plan liabilities 33,166 33,166 33,166 - - Non-public variable rate debt 506,398 507,000 - 507,000 - Non-public fixed rate debt 124,829 126,400 - 126,400 - Public debt securities 456,791 475,100 - 475,100 - Acquisition related contingent consideration 381,291 381,291 - - 381,291 January 1, 2017 Carrying Total Fair Value Fair Value Fair Value (in thousands) Amount Fair Value Level 1 Level 2 Level 3 Assets: Deferred compensation plan assets $ 24,903 $ 24,903 $ 24,903 $ - $ - Commodity hedging agreements 1,289 1,289 - 1,289 - Liabilities: Deferred compensation plan liabilities 24,903 24,903 24,903 - - Non-public variable rate debt 451,222 452,000 - 452,000 - Public debt securities 456,032 475,800 - 475,800 - Acquisition related contingent consideration 253,437 253,437 - - 253,437 Under the CBA, the Company will make a quarterly sub-bottling payment to CCR on a continuing basis for the grant of exclusive rights to distribute, promote, market and sell specified covered beverages and beverage products in the Expansion Territories. This acquisition related contingent consideration is 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 Expansion Territories to fair value by discounting future expected sub-bottling payments required under the CBA using the Company’s estimated WACC. These future expected sub-bottling payments extend through the life of the related distribution assets acquired in each Expansion Territory, which is generally 40 The acquisition related contingent consideration is the Company’s only Level 3 asset or liability. A reconciliation of the Level 3 activity is as follows: Fiscal Year (in thousands) 2017 2016 Opening balance - Level 3 liability $ 253,437 $ 136,570 Increase due to System Transformation Transactions acquisitions (1) 128,880 133,857 Measurement period adjustment (2) 14,826 - Payment of acquisition related contingent consideration (16,738 ) (13,550 ) Reclassification to current payables (2,340 ) (1,530 ) (Favorable)/unfavorable fair value adjustment 3,226 (1,910 ) Ending balance - Level 3 liability $ 381,291 $ 253,437 (1 ) (2) The fair value adjustment to the acquisition related contingent consideration liability during 2017 was primarily driven by final settlement of previously closed System Transformation Transactions and a decrease in the risk-free interest rate, partially offset by a benefit resulting from the Tax Act. The fair value adjustments to the acquisition related contingent consideration liability during 2016 were primarily driven by a change in the projected future operating results of the Expansion Territories subject to sub-bottling fees and changes in the risk-free interest rate. These adjustments were recorded in other income (expense), net on the Company’s consolidated statements of operations. The amount the Company could pay annually under the acquisition related contingent consideration arrangements for the System Transformation Transactions is expected to be in the range of $23 million to $47 million. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Payables And Accruals [Abstract] | |
Other Liabilities | 16. Other Liabilities Other liabilities consisted of the following: (in thousands) December 31, 2017 January 1, 2017 Non-current portion of acquisition related contingent consideration $ 357,952 $ 237,655 Accruals for executive benefit plans 125,791 123,078 Non-current deferred proceeds from bottling agreements conversion 87,449 - Non-current deferred proceeds from Legacy Facilities Credit 29,881 - Other 19,506 17,839 Total other liabilities $ 620,579 $ 378,572 See Note 15 and Note 21 to the consolidated financial statements for additional information on acquisition related contingent consideration and benefit plans, respectively. See Note 22 to the consolidated financial statements for additional information on the proceeds from the bottling agreements conversion and the Legacy Facilities Discount. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 17. Commitments and Contingencies Leases The Company leases office and warehouse space, machinery and other equipment under noncancellable operating lease agreements which expire at various dates through 2033. These leases generally contain scheduled rent increases or escalation clauses, renewal options, or in some cases, purchase options. The Company also leases certain warehouse space and other equipment under capital lease agreements which expire at various dates through 2030. These leases contain scheduled rent increases or escalation clauses. Amortization of assets recorded under capital leases is included in depreciation expense. Rental expense incurred for noncancellable operating leases was $18.7 million in 2017, $13.6 million in 2016 and $8.9 million in 2015. See Note 7 and Note 13 to the consolidated financial statements for additional information on leased property under capital leases. The following is a summary of future minimum lease payments, including renewal options the Company has determined to be reasonably assured, for all noncancellable operating leases and capital leases as of December 31, 2017: (in thousands) Capital Operating Leases Total 2018 $ 10,706 $ 12,497 $ 23,203 2019 10,434 11,872 22,306 2020 10,613 11,380 21,993 2021 6,218 10,879 17,097 2022 2,697 9,867 12,564 Thereafter 10,859 34,717 45,576 Total minimum lease payments including interest $ 51,527 $ 91,212 $ 142,739 Less: Amounts representing interest 8,058 Present value of minimum lease principal payments 43,469 Less: Current portion of principal payment obligations under capital leases 8,221 Long-term portion of principal payment obligations under capital leases $ 35,248 Manufacturing Cooperatives The Company is a shareholder of South Atlantic Canners, Inc. (“SAC”), a manufacturing cooperative in Bishopville, South Carolina, managed by the Company. All eight shareholders of SAC are Coca‑Cola bottlers and each has equal voting rights. The Company accounts for SAC as an equity method investment. 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 were $9.1 million in 2017, $9.0 million in 2016 and $8.5 million in 2015. The Company is obligated to purchase 17.5 million cases of finished product from SAC on an annual basis through June 2024. The Company purchased 29.9 million cases, 29.9 million cases and 28.3 million cases of finished product from SAC in 2017, 2016 and 2015, respectively. The Company is also a shareholder of Southeastern Container (“Southeastern”), a plastic bottle manufacturing cooperative from which the Company is obligated to purchase at least 80% of its requirements of plastic bottles for certain designated territories. The Company accounts for Southeastern as an equity method investment. The following table summarizes the Company’s purchases from these manufacturing cooperatives: Fiscal Year (in thousands) 2017 2016 2015 Purchases from SAC $ 148,511 $ 149,878 $ 144,511 Purchases from Southeastern 108,528 80,123 63,257 Total purchases from manufacturing cooperatives $ 257,039 $ 230,001 $ 207,768 The Company guarantees a portion of SAC’s debt, which expires at various dates through 2021. The amounts guaranteed were $23.9 million as of December 31, 2017 and $23.3 million as of January 1, 2017. Effective November 17, 2017, the Company’s guarantees for a portion of Southeastern’s debt were eliminated. The Company does not anticipate SAC will fail to fulfill its commitment 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. In the event SAC fails to fulfill its commitments under the related debt, the Company would be responsible for payments to the lenders up to the level of the guarantee. The following table summarizes the Company’s maximum exposure under this guarantee if SAC had borrowed up to its aggregate borrowing capacity: (in thousands) December 31, 2017 Maximum guaranteed debt $ 23,938 Equity investments (1) 7,325 Maximum total exposure, including equity investments $ 31,263 (1) Recorded in other assets on the Company’s consolidated balance sheets using the equity method. The Company holds no assets as collateral against the SAC guarantee, the fair value of which is immaterial to the Company’s consolidated financial statements. The Company monitors its investments in SAC and would be required to write down its investment if an impairment was identified and the Company determined it to be other than temporary. No impairment of the Company’s investments in SAC has been identified as of December 31, 2017, and there was no impairment in 2016 or 2015. 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 $35.6 million on December 31, 2017 and $29.7 million on January 1, 2017. The Company participates in long-term marketing contractual arrangements with certain prestige properties, athletic venues and other locations. As of December 31, 2017, the future payments related to these contractual arrangements, which expire at various dates through 2030, amounted to $132.8 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 that the ultimate disposition of these matters will not have a material adverse effect on the financial condition, cash flows or results of operations 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 consolidated financial statements. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 18. Income Taxes The current income tax provision represents the estimated amount of income taxes paid or payable for the year, as well as changes in estimates from prior years. The deferred income tax provision represents the change in deferred tax liabilities and assets. The following table presents the significant components of the provision for income taxes: Fiscal Year (in thousands) 2017 2016 2015 Current: Federal $ 12,978 $ (6,920 ) $ 20,107 State 5,292 27 3,563 Total current provision (benefit) $ 18,270 $ (6,893 ) $ 23,670 Deferred: Federal $ (54,232 ) $ 39,644 $ 10,638 State (3,879 ) 3,298 (230 ) Total deferred provision (benefit) $ (58,111 ) $ 42,942 $ 10,408 Income tax expense (benefit) $ (39,841 ) $ 36,049 $ 34,078 The Company’s effective income tax rate, as calculated by dividing income tax expense (benefit) by income before income taxes, was (63.2)% for 2017, 38.9% for 2016 and 34.4% for 2015. The following table provides a reconciliation of income tax expense (benefit) at the statutory federal rate to actual income tax expense (benefit). Fiscal Year 2017 2016 2015 (in thousands) Income tax expense % pre-tax income Income tax expense % pre-tax income Income tax expense % pre-tax income Statutory expense $ 22,052 35.0 % $ 32,449 35.0 % $ 34,692 35.0 % Adjustment for federal tax legislation (69,014 ) (109.5 ) - - - - Meals and entertainment 2,771 4.4 1,879 2.0 1,666 1.7 Valuation allowance change 2,718 4.3 (689 ) (0.7 ) (1,332 ) (1.3 ) State income taxes, net of federal benefit 2,029 3.2 3,243 3.5 3,496 3.5 Noncontrolling interest – Piedmont (1,692 ) (2.7 ) (2,406 ) (2.6 ) (2,261 ) (2.3 ) Adjustment for uncertain tax positions (521 ) (0.8 ) (43 ) - 51 0.1 Adjustment for state tax legislation - - (625 ) (0.7 ) (1,145 ) (1.2 ) Manufacturing deduction benefit - - (56 ) (0.1 ) (1,330 ) (1.3 ) Bargain purchase gain - - - - (704 ) (0.7 ) Other, net 1,816 2.9 2,297 2.5 945 0.9 Income tax expense (benefit) $ (39,841 ) (63.2)% $ 36,049 38.9 % $ 34,078 34.4 % The Company’s effective tax rate, as calculated by dividing income tax expense (benefit) by income before income taxes minus net income attributable to noncontrolling interest, was (70.3)% for 2017, 41.8% for 2016 and 36.6% for 2015. On December 22, 2017, the Tax Act was signed into law and significantly reformed the Internal Revenue Code of 1986, as amended. The Tax Act will significantly impact the Company by reducing the federal corporate tax rate from 35% to 21%, effective January 1, 2018, and by allowing expensing of certain capital expenditures. However, the Tax Act limits the deductibility of meals, entertainment expenses and certain executive compensation, imposes limitations on the deductibility of interest expense and eliminates the domestic production activities deduction. As of December 31, 2017, the Company completed its estimate for the tax effects of the enactment of the Tax Act, and as a result, the Company revalued and reduced its net deferred tax liability to the newly enacted corporate tax rate of 21%. The Company recognized an estimated benefit of $69.0 million, primarily as a result of revaluing its net deferred tax liability. This benefit was partially offset by a $2.4 million increase to the valuation allowance as a result of the deductibility of certain deferred compensation based on the current interpretation of the Tax Act. The net benefit of $66.6 million was recorded to income tax expense (benefit) in the 2017 consolidated financial statements. Shortly after the Tax Act was enacted, the Securities and Exchange Commission issued guidance under Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”) to address the application of GAAP and direct taxpayers to consider the impact of the Act as “provisional” when a registrant does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete the accounting for the change in tax law. In accordance with SAB 118, the Company has recognized the provisional tax impacts, outlined above, related to the re-measurement of its net deferred tax liability. The ultimate impact may differ from the provisional amounts, possibly materially, due to, among other things, the significant complexity of the Tax Act, anticipated additional regulatory guidance or related interpretations that may be issued by the Internal Revenue Service (the “IRS”), changes in accounting standards, legislative actions, future actions by states within the U.S. and changes in estimate, analysis, interpretations and assumptions the Company has made. The amounts recorded to gain (loss) on exchange transactions, gain on sale of business and bargain purchase gain, net of tax on the consolidated statements of operations did not have a significant impact on the effective income tax rate for any periods presented. The Company records liabilities for uncertain tax positions related to certain income tax positions. These liabilities reflect the Company’s best estimate of the ultimate income tax liability based on currently known facts and information. Material changes in facts or information, as well as the expiration of statute and/or settlements with individual tax jurisdictions, may result in material adjustments to these estimates in the future. The Company recognizes potential interest and penalties related to uncertain tax positions in income tax expense (benefit). During 2017, 2016 and 2015, the interest and penalties related to uncertain tax positions recognized in income tax expense (benefit) were not material. In addition, the amount of interest and penalties accrued at December 31, 2017 and January 1, 2017 were not material. The Company had uncertain tax positions, including accrued interest of $2.4 million on December 31, 2017 and $2.9 million on January 1, 2017, all of which would affect the Company’s effective 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 consolidated financial statements. The Company reduced its liability for uncertain tax positions in 2017, 2016 and 2015, primarily as a result of the expiration of applicable statutes of limitation. These reductions resulted in corresponding decreases to income tax expense (benefit). A reconciliation of uncertain tax positions, excluding accrued interest, is as follows: Fiscal Year (in thousands) 2017 2016 2015 Gross uncertain tax positions at the beginning of the year $ 2,679 $ 2,633 $ 2,620 Increase as a result of tax positions taken in the current period 966 687 547 Reduction as a result of the expiration of the applicable statute of limitations (1,359 ) (641 ) (534 ) Gross uncertain tax positions at the end of the year $ 2,286 $ 2,679 $ 2,633 Deferred income taxes are recorded based upon temporary differences between the financial statement and tax bases of assets and liabilities and available net operating loss and tax credit carryforwards. Temporary differences and carryforwards that comprised deferred income tax assets and liabilities were as follows: (in thousands) December 31, 2017 January 1, 2017 Acquisition related contingent consideration $ 94,055 $ 97,573 Deferred compensation 27,097 44,185 Deferred revenue 18,704 - Postretirement benefits 16,443 32,656 Accrued liabilities 15,523 21,666 Pension (nonunion) 8,303 17,381 Transactional costs 5,733 7,155 Capital lease agreements 3,377 5,817 Charitable contribution carryover 3,770 4,409 Pension (union) 1,922 3,162 Net operating loss carryforwards 1,923 2,148 Other 1,669 111 Deferred income tax assets $ 198,519 $ 236,263 Less: Valuation allowance for deferred tax assets 4,337 1,618 Net deferred income tax asset $ 194,182 $ 234,645 Intangible assets $ (154,425 ) $ (204,661 ) Depreciation (105,685 ) (134,872 ) Investment in Piedmont (25,895 ) (45,128 ) Inventory (9,781 ) (13,814 ) Prepaid expenses (8,399 ) (6,300 ) Patronage dividend (2,361 ) (4,724 ) Deferred income tax liabilities $ (306,546 ) $ (409,499 ) Net deferred income tax liability $ (112,364 ) $ (174,854 ) The Company’s deferred income tax assets and liabilities are subject to adjustment in future periods based on the Company’s ongoing evaluations of such deferred assets and liabilities and new information available to the Company. Valuation allowances are recognized on deferred tax assets if the Company believes it is more likely than not that some or all of the deferred tax assets will not be realized. The Company believes the majority of the deferred tax assets will be realized due to the reversal of certain significant temporary differences and anticipated future taxable income from operations. The valuation allowance of $4.3 million on December 31, 2017 and $1.6 million on January 1, 2017 was established primarily for certain loss carryforwards and deferred compensation. The increase in the valuation allowance as of December 31, 2017, was a result of the Company’s assessment of its ability to use certain loss carryforwards and the deductibility of certain deferred compensation as a result of the current interpretation of the Tax Act. The reduction in the valuation allowance as of January 1, 2017, was a result of the Company’s assessment of its ability to use certain loss carryforwards. As of December 31, 2017, the Company had $38.8 million of state net operating losses available to reduce future income taxes, which would expire in varying amounts through 2036. The Company utilized all of its federal net operating losses during 2017. Prior tax years beginning in year 2002 remain open to examination by the IRS, and various tax years beginning in year 1998 remain open to examination by certain state tax jurisdictions due to loss carryforwards. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 19. Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) (“AOCI(L)”) is comprised of adjustments relative to the Company’s pension and postretirement medical benefit plans and foreign currency translation adjustments required for a subsidiary of the Company that performs data analysis and provides consulting services outside the United States. A summary of AOCI(L) for 2017, 2016 and 2015 is as follows: Gains (Losses) During the Period Reclassification to Income January 1, Pre-tax Tax Pre-tax Tax December 31, (in thousands) 2017 Activity Effect Activity Effect 2017 Net pension activity: Actuarial loss $ (72,393 ) $ (11,219 ) $ 2,768 $ 3,402 $ (1,176 ) $ (78,618 ) Prior service costs (61 ) - - 28 (10 ) (43 ) Net postretirement benefits activity: Actuarial loss (24,111 ) (1,796 ) 443 2,942 (997 ) (23,519 ) Prior service costs 3,679 - - (2,982 ) 1,047 1,744 Recognized loss due to divestiture of the Deep South and Somerset Exchange Business and the Florence and Laurel Distribution Business - - - 8,257 (2,037 ) 6,220 Foreign currency translation adjustment (11 ) - - 40 (15 ) 14 Total AOCI(L) $ (92,897 ) $ (13,015 ) $ 3,211 $ 11,687 $ (3,188 ) $ (94,202 ) Gains (Losses) During the Period Reclassification to Income January 3, Pre-tax Tax Pre-tax Tax January 1, (in thousands) 2016 Activity Effect Activity Effect 2017 Net pension activity: Actuarial loss $ (68,243 ) $ (9,777 ) $ 3,764 $ 3,031 $ (1,168 ) $ (72,393 ) Prior service costs (78 ) - - 28 (11 ) (61 ) Net postretirement benefits activity: Actuarial loss (19,825 ) (9,152 ) 3,523 2,186 (843 ) (24,111 ) Prior service costs 5,744 - - (3,360 ) 1,295 3,679 Foreign currency translation adjustment (5 ) - - (11 ) 5 (11 ) Total AOCI(L) $ (82,407 ) $ (18,929 ) $ 7,287 $ 1,874 $ (722 ) $ (92,897 ) Gains (Losses) During the Period Reclassification to Income December 28, Pre-tax Tax Pre-tax Tax January 3, (in thousands) 2014 Activity Effect Activity Effect 2016 Net pension activity: Actuarial loss $ (74,867 ) $ 7,513 $ (2,877 ) $ 3,230 $ (1,242 ) $ (68,243 ) Prior service costs (99 ) - - 35 (14 ) (78 ) Net postretirement benefits activity: Actuarial loss (22,759 ) 1,599 (613 ) 3,164 (1,216 ) (19,825 ) Prior service costs 7,812 - - (3,360 ) 1,292 5,744 Foreign currency translation adjustment (1 ) - - (8 ) 4 (5 ) Total AOCI(L) $ (89,914 ) $ 9,112 $ (3,490 ) $ 3,061 $ (1,176 ) $ (82,407 ) A summary of the impact on the income statement line items is as follows: Fiscal 2017 (in thousands) Net Pension Activity Net Postretirement Benefits Activity Foreign Currency Translation Adjustment Total Cost of sales $ 377 $ (9 ) $ - $ 368 S,D&A expenses 3,053 (31 ) 40 3,062 Subtotal pre-tax 3,430 (40 ) 40 3,430 Income tax expense 1,186 (50 ) 15 1,151 Total after tax effect $ 2,244 $ 10 $ 25 $ 2,279 Fiscal 2016 (in thousands) Net Pension Activity Net Postretirement Benefits Activity Foreign Currency Translation Adjustment Total Cost of sales $ 331 $ (174 ) $ - $ 157 S,D&A expenses 2,728 (1,000 ) (11 ) 1,717 Subtotal pre-tax 3,059 (1,174 ) (11 ) 1,874 Income tax expense 1,179 (452 ) (5 ) 722 Total after tax effect $ 1,880 $ (722 ) $ (6 ) $ 1,152 Fiscal 2015 (in thousands) Net Pension Activity Net Postretirement Benefits Activity Foreign Currency Translation Adjustment Total Cost of sales $ 359 $ (27 ) $ - $ 332 S,D&A expenses 2,906 (169 ) (8 ) 2,729 Subtotal pre-tax 3,265 (196 ) (8 ) 3,061 Income tax expense 1,256 (76 ) (4 ) 1,176 Total after tax effect $ 2,009 $ (120 ) $ (4 ) $ 1,885 |
Capital Transactions
Capital Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Capital Transactions | 20. Capital Transactions During the first quarter of each year, the Compensation Committee of the Company’s Board of Directors determines whether any shares of the Company’s Class B Common Stock should be issued to J. Frank Harrison, III, in connection with his services for the prior year as Chairman of the Board of Directors and Chief Executive Officer of the Company, pursuant to a performance unit award agreement approved in 2008 (the “Performance Unit Award Agreement”). As permitted under the terms of the Performance Unit Award Agreement, a number of shares were settled in cash in 2017, 2016 and 2015 to satisfy tax withholding obligations in connection with the vesting of the performance units. The remaining number of shares increased the total shares of Class B Common Stock outstanding. A summary of the awards issued in 2017, 2016 and 2015 is as follows: Fiscal Year 2017 2016 2015 Date of approval for award March 7, 2017 March 8, 2016 March 3, 2015 Fiscal year of service covered by award 2016 2015 2014 Shares settled in cash 18,980 19,080 19,080 Increase in Class B Common Stock shares outstanding 21,020 20,920 20,920 Total Class B Common Stock awarded 40,000 40,000 40,000 The Company has two classes of common stock outstanding, Common Stock and Class B Common Stock. The Common Stock is traded on the NASDAQ Global Select Market sm No cash dividend or dividend of property or stock other than stock of the Company, as specifically described in the Company’s certificate of incorporation, may be declared and paid on the Class B Common Stock unless an equal or greater dividend is declared and paid on the Common Stock. During 2017, 2016 and 2015, dividends of $1.00 per share were declared and paid on both Common Stock and Class B Common Stock. Total cash dividends paid were $9.3 million per year in 2017, 2016 and 2015. Each share of Common Stock is entitled to one vote per share and each share of Class B Common Stock is entitled to 20 votes per share at all meetings of shareholders. Except as otherwise required by law, holders of the Common Stock and Class B Common Stock vote together as a single class on all matters brought before the Company’s stockholders. In the event of liquidation, there is no preference between the two classes of common stock. Compensation expense for the Performance Unit Award Agreement, recognized on the share price of the last trading day prior to the end of the fiscal year, was as follows: Fiscal Year (in thousands, except per share data) 2017 2016 2015 Total compensation expense $ 7,922 $ 7,154 $ 7,300 Share price for compensation expense $ 215.26 $ 178.85 $ 182.51 Share price date for compensation expense December 29, 2017 December 30, 2016 December 31, 2015 |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Benefit Plans | 21. Benefit Plans Executive Benefit Plans The Company has four executive benefit plans: the Supplemental Savings Incentive Plan (“Supplemental Savings Plan”), the Long-Term Retention Plan (“LTRP”), the Officer Retention Plan (“Retention Plan”) and the Long-Term Performance Plan (“Performance Plan”). Pursuant to the Supplemental Savings Plan, as amended, eligible participants may elect to defer a portion of their annual salary and bonus. Participants are immediately vested in all deferred contributions they make and become fully vested in Company contributions upon completion of five years of service, termination of employment due to death or retirement or a change in control. Participant deferrals and Company contributions made in years prior to 2006 are invested in either a fixed benefit option or certain investment funds specified by the Company. Beginning in 2010, the Company may elect at its discretion to match up to 50% of the first 6% of salary, excluding bonuses, deferred by the participant. During 2017, 2016 and 2015, the Company matched up to 50% of the first 6% of salary, excluding bonus, deferred by the participant. The Company may also make discretionary contributions to participants’ accounts. The liability under this plan was as follows: (in thousands) December 31, 2017 January 1, 2017 Current liabilities $ 8,205 $ 7,339 Noncurrent liabilities 74,958 70,709 Total liability - Supplemental Savings Plan $ 83,163 $ 78,048 Under the LTRP, the Company accrues a defined amount each year for an eligible participant based upon an award schedule. Amounts awarded may earn an investment return based on certain investment funds specified by the Company. Benefits under the LTRP are 50% vested until age 50. After age 50, the vesting percentage increases by 5% each year until the benefits are fully vested at age 60. Participants receive payments from the plan upon retirement or in certain instances upon termination of employment. Payments are made in the form of monthly installments over a period of ten, fifteen or twenty years. The liability under this plan was as follows: (in thousands) December 31, 2017 January 1, 2017 Current liabilities $ 3 $ 2 Noncurrent liabilities 2,563 1,256 Total liability - LTRP $ 2,566 $ 1,258 Under the Retention Plan, as amended effective January 1, 2007, eli g (in thousands) December 31, 2017 January 1, 2017 Current liabilities $ 2,949 $ 3,359 Noncurrent liabilities 42,694 44,480 Total liability - Retention Plan $ 45,643 $ 47,839 Under the Performance Plan, adopted as of January 1, 2007, the Compensation Committee of the Company’s Board of Directors establishes dollar amounts to which a participant shall be entitled upon attainment of the applicable performance measures. Bonus awards under the Performance Plan are made based on the relative achievement of performance measures in terms of the Company-sponsored objectives or objectives related to the performance of the individual participants or of the subsidiary, division, department, region or function in which the participant is employed. The liability under this plan was as follows: (in thousands) December 31, 2017 January 1, 2017 Current liabilities $ 5,561 $ 5,282 Noncurrent liabilities 4,527 5,651 Total liability - Performance Plan $ 10,088 $ 10,933 Pension Plans There are two Company-sponsored pension plans. The primary Company-sponsored pension plan (the “Primary Plan”) was frozen as of June 30, 2006 and no benefits accrued to participants after this 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. Each year, the Company updates its mortality assumptions used in the calculation of its pension liability using The Society of Actuaries’ latest mortality tables. In 2017, 2016 and 2015, the mortality table reflected a lower increase in longevity. The following tables set forth pertinent information for the two Company-sponsored pension plans: Changes in Projected Benefit Obligation Fiscal Year (in thousands) 2017 2016 Projected benefit obligation at beginning of year $ 273,148 $ 261,469 Service cost 2,553 461 Interest cost 11,938 12,182 Actuarial loss 27,388 8,268 Benefits paid (11,109 ) (9,232 ) Projected benefit obligation at end of year $ 303,918 $ 273,148 The discount rate for the Primary Plan and the Bargaining Plan decreased to 3.80% and 3.90%, respectively, in 2017 from 4.44% and 4.49%, respectively, in 2016, which was the primary driver of the actuarial loss in 2017. The discount rate decreased to 4.44% and 4.49% for the Primary Plan and the Bargaining Plan, respectively, in 2016, from 4.72% for both Company-sponsored pension plans in 2015, which was the primary driver in the actuarial loss in 2016. The actuarial gain and losses, net of tax, were recorded in other comprehensive loss. The projected benefit obligations and accumulated benefit obligations for both the Company’s pension plans were in excess of plan assets at December 31, 2017 and January 1, 2017. The accumulated benefit obligation was $303.9 million on December 31, 2017 and $273.1 million on January 1, 2017. Change in Plan Assets Fiscal Year (in thousands) 2017 2016 Fair value of plan assets at beginning of year $ 228,256 $ 214,055 Actual return on plan assets 29,766 12,313 Employer contributions 11,600 11,120 Benefits paid (11,109 ) (9,232 ) Fair value of plan assets at end of year $ 258,513 $ 228,256 Funded Status (in thousands) December 31, 2017 January 1, 2017 Projected benefit obligation $ (303,918 ) $ (273,148 ) Plan assets at fair value 258,513 228,256 Net funded status $ (45,405 ) $ (44,892 ) Amounts Recognized in the Consolidated Balance Sheets (in thousands) December 31, 2017 January 1, 2017 Current liabilities $ - $ - Noncurrent liabilities (45,405 ) (44,892 ) Total liability - pension plans $ (45,405 ) $ (44,892 ) Net Periodic Pension Cost (Benefit) Fiscal Year (in thousands) 2017 2016 2015 Service cost $ 2,553 $ 461 $ 116 Interest cost 11,938 12,182 11,875 Expected return on plan assets (13,597 ) (13,822 ) (13,541 ) Recognized net actuarial loss 3,402 3,031 3,230 Amortization of prior service cost 28 28 35 Net periodic pension cost (benefit) $ 4,324 $ 1,880 $ 1,715 Significant Assumptions Fiscal Year 2017 2016 2015 Projected benefit obligation at the measurement date: Discount rate - Primary Plan 3.80 % 4.44 % 4.72 % Discount rate - Bargaining Plan 3.90 % 4.49 % 4.72 % Weighted average rate of compensation increase N/A N/A N/A Net periodic pension cost for the fiscal year: Discount rate - Primary Plan and Bargaining Plan 4.44 % 4.72 % 4.32 % Weighted average expected long-term rate of return on plan assets 6.00 % 6.50 % 6.50 % Weighted average rate of compensation increase N/A N/A N/A Cash Flows (in thousands) Anticipated Future Pension Benefit Payments for the Fiscal Years 2018 $ 10,726 2019 11,350 2020 12,063 2021 12,815 2022 13,523 2023 – 2027 78,179 Contributions to the two Company-sponsored pension plans are expected to be in the range of $10 million to $20 million in 2018. Plan Assets The Company’s pension plans target asset allocation for 2018, actual asset allocation at December 31, 2017 and January 1, 2017, and the expected weighted average long-term rate of return by asset category were as follows: Target Percentage of Plan Weighted Average Expected Allocation Assets at Fiscal Year-End Long-Term Rate of Return 2018 2017 2016 2017 U.S. large capitalization equity securities 40 % 41 % 41 % 3.0 % U.S. small/mid-capitalization equity securities 5 % 5 % 5 % 0.5 % International equity securities 15 % 15 % 15 % 1.2 % Debt securities 40 % 39 % 39 % 1.3 % Total 100 % 100 % 100 % 6.0 % All assets in the Company’s pension plans are invested in institutional investment funds managed by professional investment advisors which hold U.S. equities, international equities and debt securities. The objective of the Company’s investment philosophy is to earn the plans’ targeted rate of return over longer periods without assuming excess investment risk. The general guidelines for plan investments include 30% - 45% in large capitalization equity securities, 0% - 20% in U.S. small and mid-capitalization equity securities, 0% - 10% in international equity securities and 10% - 50% in debt securities. The Company currently has 61% of its plan investments in equity securities and 39% in debt securities. U.S. large capitalization equity securities include domestic based companies that are generally included in common market indices such as the S&P 500™ and the Russell 1000™. U.S. small and mid-capitalization equity securities include small domestic equities as represented by the Russell 2000™ index. International equity securities include companies from developed markets outside the United States. Debt securities as of December 31, 2017 are comprised of investments in two institutional bond funds with a weighted average duration of approximately three years. A weighted average expected long-term rate of return of plan assets of 6.0% in 2017 and 6.5% in 2016 was used to determine net periodic pension cost. The rate reflects an estimate of long-term future returns for the pension plan assets net of expenses. The estimate is primarily a function of the asset classes, equities versus fixed income, in which the pension plan assets are invested and the analysis of past performance of these asset classes over a long period of time. The analysis includes expected long-term inflation and the risk premiums associated with equity investments and fixed income investments. The following table summarizes the Company’s common/collective trust fund pension plan assets. The underlying investments held in common/collective trust funds are actively managed equity securities and fixed income investment vehicles that are valued at the net asset value per share multiplied by the number of shares held as of the measurement date. (in thousands) December 31, 2017 January 1, 2017 Common/collective trust funds - equity securities $ 157,290 $ 139,735 Common/collective trust funds - fixed income 100,500 87,814 Total common/collective trust funds $ 257,790 $ 227,549 In addition, the Company had other level 1 pension plan assets related to its equity securities of $0.7 million in both 2017 and 2016. The level 1 assets had quoted market prices in active markets for identical assets available for fair value measurement. The Company does not have any unobservable inputs (Level 3) pension plan assets. 401(k) Savings Plan The Company provides a 401(k) Savings Plan for substantially all its employees who are not part of collective bargaining agreements and for certain employees under collective bargaining agreements. The Company’s matching contribution for employees who are not part of collective bargaining agreements is discretionary, with the option to match contributions for eligible participants up to 5% based on the Company’s financial results. For all years presented, the Company matched the maximum 5% of participants’ contributions. The Company’s matching contributions for employees who are part of collective bargaining agreements are determined in accordance with negotiated formulas for the respective employees. The total expense for the Company’s matching contributions to the 401(k) Savings Plan was $18.4 million in 2017, $14.9 million in 2016 and $10.7 million in 2015. Postretirement Benefits The Company provides postretirement benefits for a portion of its current employees. The Company recognizes the cost of postretirement benefits, which consist principally of medical benefits, during employees’ periods of active service. The Company does not pre-fund these benefits and has the right to modify or terminate certain of these benefits in the future. The following tables set forth pertinent information for the Company’s postretirement benefit plan: Reconciliation of Activity Fiscal Year (in thousands) 2017 2016 Benefit obligation at beginning of year $ 85,255 $ 70,361 Service cost 2,232 1,567 Interest cost 3,636 3,094 Acquisition of benefits 3,291 3,458 Plan participants’ contributions 752 662 Actuarial (gain)/loss 1,796 9,152 Benefits paid (2,994 ) (3,135 ) Medicare Part D subsidy reimbursement 37 96 Divestiture of benefits related to the Deep South and Somerset Exchange Business and the Florence and Laurel Distribution Business (17,340 ) - Benefit obligation at end of year $ 76,665 $ 85,255 Reconciliation of Plan Assets Fair Value Fiscal Year (in thousands) 2017 2016 Fair value of plan assets at beginning of year $ - $ - Employer contributions 2,205 2,377 Plan participants’ contributions 752 662 Benefits paid (2,994 ) (3,135 ) Medicare Part D subsidy reimbursement 37 96 Fair value of plan assets at end of year $ - $ - Funded Status (in thousands) December 31, 2017 January 1, 2017 Current liabilities $ 3,678 $ 3,468 Noncurrent liabilities 72,987 81,787 Total liability - postretirement benefits $ 76,665 $ 85,255 Net Periodic Postretirement Benefit Cost Fiscal Year (in thousands) 2017 2016 2015 Service cost $ 2,232 $ 1,567 $ 1,118 Interest cost 3,636 3,094 2,878 Recognized net actuarial loss 2,942 2,186 3,164 Amortization of prior service cost (2,982 ) (3,360 ) (3,360 ) Net periodic postretirement benefit cost $ 5,828 $ 3,487 $ 3,800 Significant Assumptions Fiscal Year 2017 2016 2015 Benefit obligation discount rate at measurement date 3.72 % 4.36 % 4.53 % Net periodic postretirement benefit cost discount rate for fiscal year 4.36 % 4.53 % 4.13 % Postretirement benefit expense - Pre-Medicare: Weighted average health care cost trend rate 6.94 % 6.20 % 7.50 % Trend rate graded down to ultimate rate 4.50 % 4.50 % 5.00 % Ultimate rate year 2025 2024 2021 Postretirement benefit expense - Post-Medicare: Weighted average health care cost trend rate 8.07 % 7.50 % 7.00 % Trend rate graded down to ultimate rate 4.50 % 4.50 % 5.00 % Ultimate rate year 2025 2024 2021 A 1% increase or decrease in the annual health care cost trend would have impacted the postretirement benefit obligation and service cost and interest cost of the Company’s postretirement benefit plan as follows: (in thousands) 1% Increase 1% Decrease Postretirement benefit obligation at December 31, 2017 $ 9,389 $ (8,323 ) Service cost and interest cost in 2017 668 (593 ) Cash Flows (in thousands) Anticipated Future Postretirement Benefit Payments Reflecting Expected Future Service 2018 $ 3,678 2019 3,834 2020 4,063 2021 4,253 2022 4,603 2023 – 2027 25,204 Anticipated future postretirement benefit payments are shown net of Medicare Part D subsidy reimbursements, which are not material. A reconciliation of the amounts in accumulated other comprehensive loss not yet recognized as components of net periodic benefit cost is as follows: (in thousands) January 1, 2017 Actuarial Gain (Loss) Reclassification Adjustments December 31, 2017 Pension Plans: Actuarial (loss) $ (119,644 ) $ (11,219 ) $ 3,402 $ (127,461 ) Prior service (cost) credit (101 ) - 28 (73 ) Postretirement Medical: Actuarial (loss) (40,502 ) (1,796 ) 2,942 (39,356 ) Prior service (cost) credit 6,122 - (2,982 ) 3,140 Recognized loss due to the divestiture of the Deep South and Somerset Exchange Business and the Florence and Laurel Distribution Business - - 8,257 8,257 Total within accumulated other comprehensive loss $ (154,125 ) $ (13,015 ) $ 11,647 $ (155,493 ) The amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic cost during 2018 are as follows: (in thousands) Pension Plans Postretirement Medical Total Actuarial loss $ 3,681 $ 1,238 $ 4,919 Prior service cost (credit) 25 (1,734 ) (1,709 ) Total expected to be recognized during 2018 $ 3,706 $ (496 ) $ 3,210 Multi-Employer Pension Plans Certain employees of the Company whose employment is covered under collective bargaining agreements participate in a multi-employer pension plan, the Employers-Teamsters Local Union Nos. 175 and 505 Pension Fund (the “Teamsters Plan”). The Company makes monthly contributions to the Teamsters Plan on behalf of such employees. Certain collective bargaining agreements covering the Teamsters Plan expired on April 29, 2017. These agreements were renewed and will now expire in April 2020. The remainder of these agreements will expire on July 26, 2018. The risks of participating in the Teamsters Plan are different from single-employer plans as contributed assets are pooled and may be used to provide benefits to employees of other participating employers. If a participating employer stops contributing to the Teamsters Plan, the unfunded obligations of the Teamsters Plan may be borne by the remaining participating employers. If the Company chooses to stop participating in the Teamsters Plan, the Company could be required to pay the Teamsters Plan a withdrawal liability based on the underfunded status of the Teamsters Plan. The Company does not anticipate withdrawing from the Teamsters Plan. In 2015, the Company increased its contribution rates to the Teamsters Plan, with additional increases occurring annually, as part of a rehabilitation plan, which was incorporated into the renewal of collective bargaining agreements with the unions effective April 28, 2014 and adopted by the Company as a rehabilitation plan effective January 1, 2015. This is a result of the Teamsters Plan being certified by its actuary as being in “critical” status for the plan year beginning January 1, 2013. The Company’s participation in the Teamsters Plan is outlined in the table below. A red zone represents less than 80% funding and requires a financial improvement plan (“FIP”) or rehabilitation plan (“RP”). Fiscal Year (in thousands) 2017 2016 2015 Pension Protection Act Zone Status Red Red Red FIP or RP pending or implemented Yes Yes Yes Surcharge imposed Yes Yes Yes Contribution $ 800 $ 728 $ 692 According to the Teamsters Plan’s Forms 5500, the Company was not listed as providing more than 5% of the total contributions for the plan years ending December 31, 2016 or December 31, 2015. At the date these financial statements were issued, Forms 5500 were not available for the plan year ending December 31, 2017. The Company has a liability recorded for exiting a multi-employer pension plan in 2008 and is required to make payments of approximately $1 million to this multi-employer pension plan each year through 2028. As of December 31, 2017 the Company has $7.7 million remaining on this liability. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 22. Related Party Transactions The Coca‑Cola Company The Company’s business consists primarily of the production, marketing and distribution of nonalcoholic beverages of The Coca‑Cola Company, which is the sole owner of the secret formulas under which the primary components of its soft drink products, either concentrate or syrup, are manufactured. As of December 31, 2017, The Coca‑Cola Company owned approximately 35% of the Company’s total outstanding Common Stock, representing approximately 5% of the total voting power of the Company’s Common Stock and Class B Common Stock voting together. As long as The Coca‑Cola Company holds the number of shares of Common Stock it currently owns, it has the right to have a designee proposed by the Company for nomination to the Company’s Board of Directors. J. Frank Harrison, III, the Chairman of the Board of Directors and Chief Executive Officer of the Company, and trustees of certain trusts established for the benefit of certain relatives of J. Frank Harrison, Jr. have agreed to vote the shares of the Company’s Class B Common Stock which they control, representing approximately 86% of the total voting power of the Company’s Common Stock and Class B Common Stock voting together, 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 and the subsequent descriptions summarize the significant transactions between the Company and The Coca‑Cola Company: Fiscal Year (in thousands) 2017 2016 2015 Payments made by the Company to The Coca-Cola Company for: Concentrate, syrup, sweetener and other purchases $ 1,085,898 $ 669,783 $ 482,673 Customer marketing programs 139,542 116,537 70,754 Cold drink equipment parts 25,381 21,558 16,260 Glacéau distribution agreement consideration 15,598 - - Payments made by The Coca-Cola Company to the Company for: Conversion of bottling agreements $ 91,450 $ - $ - Marketing funding support payments 83,177 73,513 56,284 Fountain delivery and equipment repair fees 35,335 27,624 17,400 Legacy Facilities Credit (excluding portion related to Mobile, Alabama facility) 30,647 - - Portion of Legacy Facilities Credit related to Mobile, Alabama facility 12,364 - - Facilitating the distribution of certain brands and packages to other Coca-Cola bottlers 10,474 7,193 4,670 Cold drink equipment 8,400 - - Presence marketing funding support on the Company’s behalf 4,843 2,064 2,415 Coca‑Cola Refreshments USA, Inc. The Company has a production arrangement with CCR to buy and sell finished products at cost. In addition, the Company transports product for CCR to the Company’s and other Coca-Cola bottlers’ locations. The following table summarizes purchases and sales under these arrangements between the Company and CCR: Fiscal Year (in thousands) 2017 2016 2015 Purchases from CCR $ 114,891 $ 269,575 $ 229,954 Gross sales to CCR 76,718 72,568 30,500 Sales to CCR for transporting CCR's product 2,036 21,940 16,523 Prior to the sale of BYB to The Coca‑Cola Company, CCR distributed one of the Company’s brands, Tum-E Yummies. During the third quarter of 2015, the Company sold BYB, the subsidiary that owned and distributed Tum-E Yummies to The Coca‑Cola Company and recorded a gain of $22.7 million on the sale. The Company continues to distribute Tum-E Yummies following the sale. Total sales to CCR for Tum-E Yummies were $14.8 million in 2015. As discussed in Note 3 to the consolidated financial statements, the Company and CCR recently concluded a series of System Transformation Transactions involving several asset purchase and asset exchange transactions for the acquisition and exchange of the following Expansion Territories and Expansion Facilities: Expansion Territories Definitive Agreement Date Acquisition / Exchange Date Johnson City and Morristown, Tennessee May 7, 2014 May 23, 2014 Knoxville, Tennessee August 28, 2014 October 24, 2014 Cleveland and Cookeville, Tennessee December 5, 2014 January 30, 2015 Louisville, Kentucky and Evansville, Indiana December 17, 2014 February 27, 2015 Paducah and Pikeville, Kentucky February 13, 2015 May 1, 2015 Lexington, Kentucky for Jackson, Tennessee Exchange October 17, 2014 May 1, 2015 Norfolk, Fredericksburg and Staunton, Virginia and Elizabeth City, North Carolina September 23, 2015 October 30, 2015 Easton and Salisbury, Maryland and Richmond and Yorktown, Virginia September 23, 2015 January 29, 2016 Alexandria, Virginia and Capitol Heights and La Plata, Maryland September 23, 2015 April 1, 2016 Baltimore, Hagerstown and Cumberland, Maryland September 23, 2015 April 29, 2016 Cincinnati, Dayton, Lima and Portsmouth, Ohio and Louisa, Kentucky September 1, 2016 1 October 28, 2016 Anderson, Fort Wayne, Lafayette, South Bend and Terre Haute, Indiana September 1, 2016 January 27, 2017 Indianapolis and Bloomington, Indiana and Columbus and Mansfield, Ohio September 1, 2016 March 31, 2017 Akron, Elyria, Toledo, Willoughby and Youngstown, Ohio April 13, 2017 April 28, 2017 Memphis, Tennessee September 29, 2017 October 2, 2017 Little Rock and West Memphis, Arkansas for Leroy, Mobile and Robertsdale, Alabama, Panama City, Florida, Bainbridge, Columbus and Sylvester, Georgia, Ocean Springs, Mississippi and Somerset, Kentucky (as part of the CCR Exchange Transaction) September 29, 2017 October 2, 2017 Expansion Facilities Definitive Agreement Date Acquisition / Exchange Date Annapolis, Maryland Make-Ready Center October 30, 2015 October 30, 2015 Sandston, Virginia October 30, 2015 January 29, 2016 Silver Spring and Baltimore, Maryland October 30, 2015 April 29, 2016 Cincinnati, Ohio September 1, 2016 October 28, 2016 Indianapolis and Portland, Indiana September 1, 2016 March 31, 2017 Twinsburg, Ohio April 13, 2017 April 28, 2017 Memphis, Tennessee and West Memphis, Arkansas for Mobile, Alabama (as part of the CCR Exchange Transaction) September 29, 2017 October 2, 2017 (1) As amended by Amendment No. 1, dated January 27, 2017. As part of the transactions for the Expansion Territories, the Company entered into the CBA, as described above in Note 8. Under the CBA, the Company makes a quarterly sub-bottling payment to CCR on a continuing basis for the grant of exclusive rights to distribute, promote, market and sell the authorized brands of The Coca‑Cola Company and related products in the Expansion Territories. The quarterly sub-bottling payment is based on gross profit derived from sales of certain beverages and beverage products that are sold under the same trademarks that identify a covered beverage, beverage product or certain cross-licensed brands. The liability recorded by the Company to reflect the estimated fair value of contingent consideration related to future sub-bottling payments was $381.3 million on December 31, 2017 and $253.4 million on January 1, 2017. Sub-bottling payments to CCR were $16.7 million in 2017, $13.5 million in 2016 and $4.0 million in 2015. Glacéau Distribution Termination Agreement On January 1, 2017, the Company obtained the rights to market, promote, distribute and sell glacéau vitaminwater, glacéau smartwater and glacéau vitaminwater zero drops in certain geographic territories including the District of Columbia and portions of Delaware, Maryland and Virginia, pursuant to an agreement entered into by the Company, The Coca‑Cola Company and CCR in June 2016. Pursuant to the agreement, the Company made a payment of $15.6 million during the first quarter of 2017 to The Coca‑Cola Company, which represented a portion of the total payment made by The Coca‑Cola Company to terminate a distribution arrangement with a prior distributor in this territory. Bottling Agreements Conversion Pursuant to a territory conversion agreement entered into by the Company, The Coca‑Cola Company and CCR in September 2015 (as amended), upon the conversion of the Company’s then-existing bottling agreements to the CBA on March 31, 2017, the Company received a one-time fee from CCR, which, after final adjustments made during the second quarter of 2017, totaled $91.5 million. This one-time fee was recorded as a deferred liability and will be amortized as a reduction to cost of sales over a period of 40 years. As of December 31, 2017, $2.3 million of this fee was recorded in other accrued liabilities, $87.4 million of this fee was recorded to other liabilities and $1.8 million was amortized during 2017 on the consolidated financial statements. Legacy Facilities Credit In December 2017, The Coca‑Cola Company agreed to provide the Company the Legacy Facilities Credit, a one-time fee of $43.0 million to compensate for the net economic impact of changes made by The Coca‑Cola Company to the authorized pricing on sales of covered beverages produced at the Company’s Legacy Facilities prior to implementation of new pricing mechanisms included in the RMA. The Company immediately recognized $12.4 million of this fee, representing the portion applicable to a facility in Mobile, Alabama which the Company transferred to CCR as part of the CCR Exchange Transaction. The remaining $30.6 million of the Legacy Facilities Credit, of which $0.7 million was classified as current, was recorded as a deferred liability and will be amortized as a reduction to cost of sales over a period of 40 years. Investment in Southeastern Container In December 2017, CCR redistributed a portion of its investment in Southeastern Container. As a result of this redistribution, the Company increased its investment in Southeastern Container by $6.0 million, which was recorded as other income in the consolidated financial statements. Coca‑Cola Bottlers’ Sales and Services Company, LLC (“CCBSS”) Along with all other Coca‑Cola bottlers in the United States, including CCR, the Company is a member of CCBSS, a company formed in 2003 for the purpose of facilitating various procurement functions and distributing certain specified beverage products of The Coca‑Cola Company with the intention of enhancing the efficiency and competitiveness of the Coca‑Cola bottling system in the United States. 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 $11.2 million on December 31, 2017 and $7.4 million on January 1, 2017. In addition, the Company pays an administrative fee to CCBSS for its services. The Company incurred administrative fees to CCBSS of $2.3 million in 2017, $1.3 million in 2016 and $0.7 million in 2015, which were classified as accounts receivable, other in the consolidated financial statements National Product Supply Group The Company is a member of a national product supply group (the “NPSG”), comprised of The Coca‑Cola Company and other Coca‑Cola bottlers who are regional producing bottlers (“RPBs”) in The Coca‑Cola Company’s national product supply system, pursuant to a national product supply governance agreement executed in October 2015 with The Coca‑Cola Company and other RPBs (the “NPSG Governance Agreement”). The stated objectives of the NPSG include, among others, (i) Coca‑Cola system strategic infrastructure investment and divestment planning; (ii) network optimization of all plant to distribution center sourcing; and (iii) new product/packaging infrastructure planning. Under the NPSG Governance Agreement, the NPSG members established certain governance mechanisms, including a governing board (the “NPSG Board”) comprised of a representative of (i) the Company, (ii) The Coca‑Cola Company and (iii) each other RPB. As of December 31, 2017, the NPSG Board consisted of The Coca‑Cola Company, the Company and seven other RPBs. The NPSG Board makes and/or oversees and directs certain key decisions regarding the NPSG, including decisions regarding the management and staffing of the NPSG and the funding for its ongoing operations. Pursuant to the decisions of the NPSG Board made from time to time and subject to the terms and conditions of the NPSG Governance Agreement, each RPB is required to make investments in its respective manufacturing assets and implement Coca‑Cola system strategic investment opportunities consistent with the NPSG Governance Agreement. The Company is also obligated to pay a certain portion of the costs of operating the NPSG. The Company incurred NPSG operating costs of $1.1 million in 2017 and $0.4 million in 2016, which were classified as S,D&A expense in the consolidated financial statements CONA Services LLC The Company is a member of CONA Services LLC (“CONA”), an entity formed with The Coca‑Cola Company and certain other Coca‑Cola bottlers pursuant to a limited liability company agreement executed in January 2016 (as amended, the “CONA LLC Agreement”) to provide business process and information technology services to its members. Under the CONA LLC Agreement, the business and affairs of CONA are managed by a board of directors comprised of representatives of its members (the “CONA Board”). All directors are entitled to one vote, regardless of the percentage interest in CONA held by each member. The Company currently has the right to designate one of the members of the CONA Board and has a percentage interest in CONA of approximately 20%. Most matters to be decided by the CONA Board require approval by a majority of a quorum of the directors, provided that the approval of 80% of the directors is required to, among other things, require members to make additional capital contributions, approve CONA’s annual operating and capital budgets, and approve capital expenditures in excess of certain agreed upon amounts. Each CONA member is required to make capital contributions to CONA if and when approved by the CONA Board. The Company made capital contributions to CONA of $3.6 million in 2017 and $7.9 million in 2016, which were classified as other assets in the consolidated financial statements. No CONA member may transfer its membership interest (or any portion thereof) except to a purchaser of the member’s bottling business (or any portion thereof) and as permitted under the member’s comprehensive beverage agreement with The Coca‑Cola Company. The CONA LLC Agreement further provides that, if CCR grants any major North American Coca‑Cola bottler other than a CONA member rights to (i) manufacture, produce and package or (ii) market, promote, distribute and sell Coca‑Cola products, CCR will require the bottler to become a CONA member, to implement the CONA System in the bottler’s operations and to enter into a master services agreement with CONA. The Company is also party to an amended and restated master services agreement with CONA (the “CONA MSA”), pursuant to which CONA agreed to make available, and the Company became 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. As part of making the CONA System available, CONA provides the Company with certain business process and information technology services, including the planning, development, management and operation of the CONA System in connection with our direct store delivery and manufacture of products (collectively, the “CONA Services”). The Company is also authorized under the CONA MSA to use the CONA System in connection with its distribution, promotion, marketing, sale and manufacture of beverages it is authorized to distribute or manufacture under the CBA, the RMA or any other agreement with The Coca‑Cola Company, subject to the provisions of the CONA LLC Agreement and any licenses or other agreements relating to products or services provided by third parties and used in connection with the CONA System. In exchange for the Company’s rights to use the CONA System and receive the CONA Services under the CONA MSA, it is charged service fees by CONA based on the number of physical cases of beverages the Company distributed or manufactured during the applicable period in the portion of its territories where the CONA Services have then been implemented. Upon the earlier of (i) all members of CONA beginning to use the CONA System in all territories in which they distribute and manufacture Coca‑Cola products (excluding certain territories of CCR that are expected to be sold to bottlers that are neither members of CONA nor users of the CONA System), or (ii) December 31, 2018, the service fees will be changed to be an amount per physical case of beverages distributed or manufactured in any portion of the Company’s territories equal to the aggregate costs incurred by CONA to maintain and operate the CONA System and provide the CONA Services divided by the total number of cases distributed or manufactured by all of the members of CONA, subject to certain exceptions and provided that the aggregate costs related to CONA’s manufacturing functionality will be borne solely amongst the CONA members who have rights to manufacture beverages of The Coca‑Cola Company. The Company is obligated to pay the service fees under the CONA MSA even if it is not using the CONA System for all or any portion of its distribution and manufacturing operations. The Company incurred CONA Services Fees of $12.6 million in 2017 and $7.5 million in 2016. Snyder Production Center (“SPC”) The Company leases the SPC and an adjacent sales facility, which are located in Charlotte, North Carolina, from Harrison Limited Partnership One (“HLP”). HLP is directly and indirectly owned by trusts of which J. Frank Harrison, III, Chairman of the Board of Directors and Chief Executive Officer of the Company, Sue Anne H. Wells, a director of the Company, and Deborah H. Everhart, a former director of the Company, are trustees and beneficiaries. Morgan H. Everett, Vice President and a director of the Company, is a permissible, discretionary beneficiary of the trusts that directly or indirectly own HLP. The SPC lease expires on December 31, 2020. The principal balance outstanding under this capital lease was $11.6 million on December 31, 2017 and $14.7 million on January 1, 2017. The annual base rent the Company is obligated to pay under the lease is subject to an adjustment for an inflation factor. Rental payments related to this lease were $4.1 million in 2017, $4.0 million in 2016 and $3.8 million in 2015. Company Headquarters The Company leases its headquarters office facility and an adjacent office facility from Beacon Investment Corporation (“Beacon”). The lease expires on December 31, 2021. J. Frank Harrison, III is Beacon’s majority shareholder and Morgan H. Everett is a minority shareholder. The principal balance outstanding under this capital lease was $12.8 million on December 31, 2017 and $15.5 million on January 1, 2017. The annual base rent the Company is obligated to pay under the lease is subject to adjustment for increases in the Consumer Price Index. The minimum rentals and contingent rental payments related to this lease were as follows: Fiscal Year (in thousands) 2017 2016 2015 Minimum rentals $ 3,509 $ 3,526 $ 3,540 Contingent rentals 877 767 682 Total rental payments $ 4,386 $ 4,293 $ 4,222 The contingent rentals in 2017, 2016 and 2015 are a result of changes in the Consumer Price Index. Increases or decreases in lease payments that result from changes in the Consumer Price Index were recorded as adjustments to interest expense. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 23. 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. See Note 1 to the consolidated financial statements for additional information related to net income per share. Fiscal Year (in thousands, except per share data) 2017 2016 2015 Numerator for basic and diluted net income per Common Stock and Class B Common Stock share: Net income attributable to Coca-Cola Bottling Co. Consolidated $ 96,535 $ 50,146 $ 59,002 Less dividends: Common Stock 7,141 7,141 7,141 Class B Common Stock 2,187 2,166 2,146 Total undistributed earnings $ 87,207 $ 40,839 $ 49,715 Common Stock undistributed earnings – basic $ 66,754 $ 31,328 $ 38,223 Class B Common Stock undistributed earnings – basic 20,453 9,511 11,492 Total undistributed earnings $ 87,207 $ 40,839 $ 49,715 Common Stock undistributed earnings – diluted $ 66,469 $ 31,194 $ 38,059 Class B Common Stock undistributed earnings – diluted 20,738 9,645 11,656 Total undistributed earnings – diluted $ 87,207 $ 40,839 $ 49,715 Numerator for basic net income per Common Stock share: Dividends on Common Stock $ 7,141 $ 7,141 $ 7,141 Common Stock undistributed earnings – basic 66,754 31,328 38,223 Numerator for basic net income per Common Stock share $ 73,895 $ 38,469 $ 45,364 Numerator for basic net income per Class B Common Stock share: Dividends on Class B Common Stock $ 2,187 $ 2,166 $ 2,146 Class B Common Stock undistributed earnings – basic 20,453 9,511 11,492 Numerator for basic net income per Class B Common Stock share $ 22,640 $ 11,677 $ 13,638 Fiscal Year (in thousands, except per share data) 2017 2016 2015 Numerator for diluted net income per Common Stock share: Dividends on Common Stock $ 7,141 $ 7,141 $ 7,141 Dividends on Class B Common Stock assumed converted to Common Stock 2,187 2,166 2,146 Common Stock undistributed earnings – diluted 87,207 40,839 49,715 Numerator for diluted net income per Common Stock share $ 96,535 $ 50,146 $ 59,002 Numerator for diluted net income per Class B Common Stock share: Dividends on Class B Common Stock $ 2,187 $ 2,166 $ 2,146 Class B Common Stock undistributed earnings – diluted 20,738 9,645 11,656 Numerator for diluted net income per Class B Common Stock share $ 22,925 $ 11,811 $ 13,802 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 Class B Common Stock weighted average shares outstanding – basic 2,188 2,168 2,147 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) 9,369 9,349 9,328 Class B Common Stock weighted average shares outstanding – diluted 2,228 2,208 2,187 Basic net income per share: Common Stock $ 10.35 $ 5.39 $ 6.35 Class B Common Stock $ 10.35 $ 5.39 $ 6.35 Diluted net income per share: Common Stock $ 10.30 $ 5.36 $ 6.33 Class B Common Stock $ 10.29 $ 5.35 $ 6.31 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) Denominator for diluted net income per share for Common Stock and Class B Common Stock includes the dilutive effect of shares relative to the Performance Unit Award Agreement. (4) The Company does not have anti-dilutive shares. |
Risks and Uncertainties
Risks and Uncertainties | 12 Months Ended |
Dec. 31, 2017 | |
Risks And Uncertainties [Abstract] | |
Risks and Uncertainties | 24. Risks and Uncertainties Approximately 93% of the Company’s total bottle/can sales volume to retail customers consists of products of The Coca‑Cola Company, which is the sole supplier of these products or of the concentrates or syrups required to manufacture these products. The remaining bottle/can sales volume to retail customers consists of products of other beverage companies or those owned by the Company. The Company has beverage agreements with The Coca‑Cola Company and other beverage companies under which it has various requirements. Failure to meet the requirements of these beverage agreements could result in the loss of distribution rights for the respective products. The Company’s products are sold and distributed through various channels, which include selling directly to retail stores and other outlets such as food markets, institutional accounts and vending machine outlets. During 2017, approximately 65% of the Company’s bottle/can sales volume to retail customers was sold for future consumption, while the remaining bottle/can sales volume to retail customers was sold for immediate consumption. The following table summarizes the percentage of the Company’s total bottle/can sales volume to its largest customers, as well as the percentage of the Company’s total net sales, which are included in the Nonalcoholic Beverages operating segment, that such volume represents. No other customer represented greater than 10% of the Company’s total net sales for any years presented. Fiscal Year 2017 2016 2015 Approximate percent of the Company's total bottle/can sales volume Wal-Mart Stores, Inc. 19 % 20 % 22 % The Kroger Company 10 % 6 % 6 % Food Lion, LLC 6 % 8 % 7 % Total approximate percent of the Company's total bottle/can sales volume 35 % 34 % 35 % Approximate percent of the Company's total net sales Wal-Mart Stores, Inc. 13 % 14 % 15 % The Kroger Company 7 % 5 % 5 % Food Lion, LLC 4 % 5 % 5 % Total approximate percent of the Company's total net sales 24 % 24 % 25 % The NPSG Governance Agreement was executed in October 2015 by The Coca‑Cola Company, the Company and other RPBs. The Coca‑Cola Company and each member RPB has a representative on the NPSG Board. As of December 31, 2017, the NPSG Board consisted of The Coca‑Cola‑Company, the Company and seven other RPBs. Pursuant to the NPSG Governance Agreement, the Company has agreed to abide by decisions made by the NPSG Board, which include decisions regarding strategic investment and divestment, optimal national product supply sourcing and new product or packaging infrastructure planning. Even though the Company has a representative on the NPSG Board, the Company will not exercise sole decision-making authority relating to the decisions of the NPSG Board, and the interests of other members of the NPSG Board may diverge from those of the Company. The Company purchases all its aluminum cans from two domestic suppliers and all of its plastic bottles from two manufacturing cooperatives. See Note 17 and Note 22 of the consolidated financial statements for additional information. The Company is exposed to price risk on commodities such as aluminum, corn and resin which affects the cost of raw materials used in the production of finished products. The Company both produces and procures these finished products. Examples of the raw materials affected are aluminum cans and plastic bottles used for packaging and high fructose corn syrup used as a product ingredient. Further, the Company is exposed to commodity price risk on crude oil which impacts the Company’s cost of fuel used in the movement and delivery of the Company’s products. The Company participates in commodity hedging and risk mitigation programs administered both by CCBSS and by the Company. In addition, there is no limit on the price The Coca‑Cola Company and other beverage companies can charge for concentrate. Certain liabilities of the Company, including floating rate debt, retirement benefit obligations and the Company’s pension liability, are subject to risk of changes in both long-term and short-term interest rates. The Company’s contingent consideration liability resulting from the acquisition of the Expansion Territories is subject to risk as a result of changes in the Company’s probability weighted discounted cash flow model, which is based on internal forecasts, and changes in the Company’s WACC, which is derived from market data. Approximately 14% of the Company’s labor force is covered by collective bargaining agreements. The Company’s collective bargaining agreements, which generally have 3- to 5-year terms, expire at various dates through 2022. Terms and conditions of the new labor union agreements could increase the Company’s exposure to work interruptions or stoppages, as an increased percentage of its workforce is covered by collective bargaining agreements. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures of Cash Flow Information | 25. Supplemental Disclosures of Cash Flow Information Changes in current assets and current liabilities affecting cash were as follows: Fiscal Year (in thousands) 2017 2016 2015 Accounts receivable, trade, net $ (121,203 ) $ (83,204 ) $ (62,542 ) Accounts receivable from The Coca-Cola Company 3,272 (31,231 ) (5,258 ) Accounts receivable, other (9,190 ) (5,723 ) (9,543 ) Inventories 2,527 (8,301 ) (13,849 ) Prepaid expenses and other current assets (22,870 ) 2,277 (6,264 ) Accounts payable, trade 73,603 32,186 21,728 Accounts payable to The Coca-Cola Company 33,757 39,842 26,769 Other accrued liabilities 31,525 6,474 24,784 Accrued compensation 7,351 7,613 6,087 Accrued interest payable 1,487 158 (174 ) Change in current assets less current liabilities (exclusive of acquisitions) $ 259 $ (39,909 ) $ (18,262 ) The Company had the following cash payments (refunds) during the period for interest and income taxes: Fiscal Year (in thousands) 2017 2016 2015 Interest $ 39,609 $ 34,764 $ 27,391 Income taxes 30,965 (7,111 ) 31,782 The Company had the following significant noncash investing and financing activities: Fiscal Year (in thousands) 2017 2016 2015 Estimated fair value related to the divestiture of the Deep South and Somerset Exchange Business and the Florence and Laurel Distribution Business $ 151,434 $ - $ - Additions to property, plant and equipment accrued and recorded in accounts payable, trade 22,329 15,704 14,006 Gain on acquisition of Southeastern Container preferred shares in CCR redistribution 6,012 - - Accounts receivable from The Coca-Cola Company for adjustments to the cash purchase price for the April 2017 Transactions 4,707 - - Issuance of Class B Common Stock in connection with stock award 3,669 3,726 2,225 Capital lease obligations incurred 2,233 - 3,361 |
Segments
Segments | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segments | 26. Segments The Company evaluates segment reporting in accordance with FASB ASC 280, Segment Reporting, each reporting period, including evaluating the reporting package reviewed by the Chief Operation Decision Maker (“CODM”). The Company has concluded the Chief Executive Officer, Chief Operating Officer and Chief Financial Officer, as a group, represent the CODM . The Company believes four operating segments exist. Nonalcoholic Beverages represents the vast majority of the Company’s consolidated revenues, income from operations and assets. The additional three 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: Fiscal Year (in thousands) 2017 2016 2015 Net Sales: Nonalcoholic Beverages $ 4,243,007 $ 3,060,937 $ 2,245,836 All Other 301,801 234,732 160,191 Eliminations (1) (221,140 ) (139,241 ) (99,569 ) Consolidated net sales $ 4,323,668 $ 3,156,428 $ 2,306,458 Income from operations: Nonalcoholic Beverages $ 84,775 $ 123,230 $ 92,921 All Other 11,404 4,629 5,223 Consolidated income from operations $ 96,179 $ 127,859 $ 98,144 Depreciation and Amortization: Nonalcoholic Beverages $ 160,524 $ 109,716 $ 76,127 All Other 8,317 6,907 4,769 Consolidated depreciation and amortization $ 168,841 $ 116,623 $ 80,896 (in thousands) December 31, 2017 January 1, 2017 Total Assets: Nonalcoholic Beverages $ 2,958,521 $ 2,349,284 All Other 119,894 105,785 Eliminations (1) (5,455 ) (5,585 ) Consolidated total assets $ 3,072,960 $ 2,449,484 (1) The entire net sales elimination for each period presented represents net sales from All Other 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. Asset eliminations relate to eliminations of intercompany receivables and payables between Nonalcoholic Beverages and All Other. Net sales by product category were as follows: Fiscal Year (in thousands) 2017 2016 2015 Bottle/can sales: Sparkling beverages (carbonated) $ 2,285,621 $ 1,764,558 $ 1,323,712 Still beverages (noncarbonated, including energy products) 1,325,969 892,125 577,872 Total bottle/can sales 3,611,590 2,656,683 1,901,584 Other sales: Sales to other Coca-Cola bottlers 383,065 238,182 178,777 Post-mix and other 329,013 261,563 226,097 Total other sales 712,078 499,745 404,874 Total net sales $ 4,323,668 $ 3,156,428 $ 2,306,458 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | 27. Quarterly Financial Data (Unaudited) The unaudited quarterly financial data for the fiscal years ended December 31, 2017 and January 1, 2017 is included in the tables shown below. Excluding the impact of System Transformation Transactions completed during the fiscal year, sales volume has historically been the highest in the second and third quarter of each fiscal year. Additional meaningful financial information is included in the table following each presented period. Quarter Ended (in thousands, except per share data) April 2, 2017 July 2, 2017 October 1, 2017 December 31, 2017 Net sales $ 865,702 $ 1,169,291 $ 1,162,526 $ 1,126,149 Gross profit 332,021 415,178 410,324 383,424 Net income (loss) attributable to Coca-Cola Bottling Co. Consolidated (5,051 ) 6,348 17,316 77,922 Basic net income (loss) per share based on net income attributable to Coca-Cola Bottling Co. Consolidated: Common Stock $ (0.54 ) $ 0.68 $ 1.86 $ 8.35 Class B Common Stock $ (0.54 ) $ 0.68 $ 1.86 $ 8.35 Diluted net income (loss) per share based on net income attributable to Coca-Cola Bottling Co. Consolidated: Common Stock $ (0.54 ) $ 0.68 $ 1.85 $ 8.31 Class B Common Stock $ (0.54 ) $ 0.67 $ 1.84 $ 8.32 Additional Information: Quarter Ended (in thousands, except per share data) April 2, 2017 July 2, 2017 October 1, 2017 December 31, 2017 System Transformation Transactions acquisitions impact: Net sales impact $ 264,906 $ 472,649 $ 478,272 $ 536,070 Pre-tax income (loss) impact 4,450 15,320 10,329 (415 ) Net income (loss) impact 2,746 9,452 6,373 (179 ) Per basic common share impact $ 0.29 $ 1.02 $ 0.68 $ (0.02 ) System Transformation Transactions settlement impact: Pre-tax total (income) expense $ - $ 9,442 $ - $ (2,446 ) (Income) expense net of tax - 5,826 - (1,054 ) (Income) expense per basic common share $ - $ 0.61 $ - $ (0.11 ) Expenses related to System Transformation Transactions: Pre-tax total expense $ 7,652 $ 11,574 $ 13,148 $ 17,171 Expense net of tax 4,721 7,141 8,112 7,401 Expense per basic common share $ 0.50 $ 0.77 $ 0.86 $ 0.79 Gain on exchange of franchise territories: Pre-tax income impact $ - $ - $ - $ 529 Net income impact - - - 228 Per basic common share impact $ - $ - $ - $ 0.02 Portion of Legacy Facilities Credit related to Mobile, Alabama facility impact: Pre-tax income impact $ - $ - $ - $ 12,364 Net income impact - - - 5,329 Per basic common share impact $ - $ - $ - $ 0.57 Acquisition of Southeastern Container preferred shares from CCR impact: Pre-tax income impact $ - $ - $ - $ 6,012 Net income impact - - - 2,591 Per basic common share impact $ - $ - $ - $ 0.28 Fair value income/(expense) for acquisition related contingent consideration: Pre-tax total income/(expense) $ (12,246 ) $ (16,119 ) $ 5,225 $ 19,914 Income/(expense) net of tax (7,556 ) (9,945 ) 3,224 8,583 Income/(expense) per basic common share $ (0.81 ) $ (1.07 ) $ 0.35 $ 0.92 Amortization of converted distribution rights: Pre-tax total expense $ - $ 2,760 $ 2,760 $ 2,330 Expense net of tax - 1,703 1,703 1,004 Expense per basic common share $ - $ 0.18 $ 0.18 $ 0.11 Mark-to-market income/(expense) related to commodity hedging program: Pre-tax total income/(expense) $ 327 $ (1,187 ) $ 3,401 $ 589 Income/(expense) net of tax 202 (732 ) 2,098 254 Income/(expense) per basic common share $ 0.02 $ (0.08 ) $ 0.22 $ 0.03 Tax Act impact: Income net of tax $ - $ - $ - $ 66,595 Income per basic common share $ - $ - $ - $ 7.14 Quarter Ended (in thousands, except per share data) April 3, 2016 July 3, 2016 October 2, 2016 January 1, 2017 Net sales $ 625,456 $ 840,384 $ 849,028 $ 841,560 Gross profit 243,898 319,707 327,190 324,927 Net income (loss) attributable to Coca-Cola Bottling Co. Consolidated (10,041 ) 15,652 23,142 21,393 Basic net income (loss) per share based on net income attributable to Coca-Cola Bottling Co. Consolidated: Common Stock $ (1.08 ) $ 1.68 $ 2.48 $ 2.31 Class B Common Stock $ (1.08 ) $ 1.68 $ 2.48 $ 2.31 Diluted net income (loss) per share based on net income attributable to Coca-Cola Bottling Co. Consolidated: Common Stock $ (1.08 ) $ 1.67 $ 2.47 $ 2.30 Class B Common Stock $ (1.08 ) $ 1.67 $ 2.47 $ 2.29 Additional Information: Quarter Ended (in thousands, except per share data) April 3, 2016 July 3, 2016 October 2, 2016 January 1, 2017 System Transformation Transactions acquisitions impact: Net sales impact $ 35,311 $ 162,819 $ 174,420 $ 219,780 Pre-tax income impact 1,206 13,502 2,512 5,153 Net income impact 742 8,304 1,545 3,169 Per basic common share impact $ 0.08 $ 0.89 $ 0.17 $ 0.34 System Transformation Transactions divestitures impact: Net sales impact $ - $ - $ - $ 68,929 Pre-tax income impact - - - 11,538 Net income impact - - - 7,096 Per basic common share impact $ - $ - $ - $ 0.76 Expenses related to System Transformation Transactions: Pre-tax total expense $ 6,423 $ 7,005 $ 9,780 $ 9,066 Expense net of tax 3,950 4,308 6,015 5,576 Expense per basic common share $ 0.43 $ 0.46 $ 0.66 $ 0.59 Reduction of gain related to exchange of franchise territories: Pre-tax total adjustment $ - $ 692 $ - $ - Adjustment net of tax - 426 - - Adjustment per basic common share $ - $ 0.05 $ - $ - Fair value income/(expense) for acquisition related contingent consideration: Pre-tax total income/(expense) $ (17,151 ) $ (16,274 ) $ 7,365 $ 27,970 Income/(expense) net of tax (10,548 ) (10,009 ) 4,530 17,202 Income/(expense) per basic common share $ (1.14 ) $ (1.06 ) $ 0.49 $ 1.85 Mark-to-market income/(expense) related to commodity hedging program: Pre-tax total income/(expense) $ 1,040 $ 2,770 $ 388 $ 530 Income/(expense) net of tax 640 1,704 239 326 Income/(expense) per basic common share $ 0.07 $ 0.18 $ 0.03 $ 0.04 Impact of changes in product supply governance: Pre-tax total income $ 2,213 $ 1,105 $ 1,614 $ 2,591 Income net of tax 1,361 680 993 1,593 Income per basic common share $ 0.15 $ 0.07 $ 0.11 $ 0.17 Expense related to special charitable contribution: Pre-tax total expense $ 4,000 $ - $ - $ - Expense net of tax 2,460 - - - Expense per basic common share $ 0.26 $ - $ - $ - |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 31, 2017 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts and Reserves | Schedule II COCA-COLA BOTTLING CO. CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS AND RESERVES Allowance for Doubtful Accounts Fiscal Year (in thousands) 2017 2016 2015 Balance at beginning of year $ 4,448 $ 2,117 $ 1,330 Additions charged to costs and expenses 4,464 2,534 1,234 Deductions 1,306 203 447 Balance at end of year $ 7,606 $ 4,448 $ 2,117 Deferred Income Tax Valuation Allowance Fiscal Year (in thousands) 2017 2016 2015 Balance at beginning of year $ 1,618 $ 2,307 $ 3,640 Adjustment for federal tax legislation (1) 2,419 - - Additions charged to costs and expenses 877 - 28 Deductions credited to expense 577 689 1,361 Balance at end of year $ 4,337 $ 1,618 $ 2,307 (1) |
Description of Business and S39
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Coca‑Cola Bottling Co. Consolidated (the “Company”) produces, markets and distributes nonalcoholic beverages, primarily products of The Coca‑Cola Company, and is the largest independent Coca‑Cola bottler in the United States. Approximately 93% of the Company’s total bottle/can sales volume to retail customers consists of products of The Coca‑Cola Company, which include some of the most recognized and popular beverage brands in the world. The Company also distributes products for several other beverage brands including Dr Pepper and Monster Energy. The Company manages its business on the basis of four operating segments, Nonalcoholic Beverages and three additional operating segments that do not meet the quantitative thresholds for separate reporting, either individually or in the aggregate, and therefore have been combined into “All Other.” Piedmont Coca-Cola Bottling Partnership (“Piedmont”) is the Company’s only subsidiary that has a significant third-party noncontrolling interest. Piedmont distributes and markets nonalcoholic beverages in portions of North Carolina and South Carolina. The Company provides a portion of these nonalcoholic beverage products to Piedmont at cost and receives a fee for managing the operations of Piedmont pursuant to a management agreement. Refer to Note 2 for additional information. As part of The Coca‑Cola Company’s plans to refranchise its North American bottling territories, the Company recently concluded a series of transactions from April 2013 to October 2017 with The Coca‑Cola Company, Coca‑Cola Refreshments USA, Inc. (“CCR”), a wholly-owned subsidiary of The Coca‑Cola Company, and Coca‑Cola Bottling Company United, Inc. (“United”), an independent bottler that is unrelated to the Company, to significantly expand the Company’s distribution and manufacturing operations through the acquisition and exchange of rights to serve distribution territories (the “Expansion Territories”) and related distribution assets, as well as the acquisition and exchange of regional manufacturing facilities (the “Expansion Facilities”) and related manufacturing assets. Refer to Note 3 for additional information. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and 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. |
Fiscal Year | Fiscal Year The Company’s fiscal year generally ends on the Sunday closest to December 31 of each year. The fiscal years presented are: • The 52-week period ended December 31, 2017 (“2017”) • The 52-week period ended January 1, 2017 (“2016”); and • The 53-week period ended January 3, 2016 (“2015”). |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand, cash in banks and cash equivalents, which are highly liquid debt instruments with maturities of less than 90 days. The Company maintains cash deposits with major banks, which, from time to time, may exceed federally insured limits. The Company periodically assesses the financial condition of the institutions and believes the risk of any loss is minimal. |
Accounts Receivable, Trade | Accounts Receivable, Trade The Company sells its products to mass merchandise retailers, supermarkets retailers, convenience stores and other customers and extends credit, generally without requiring collateral, based on an ongoing evaluation of the customer’s business prospects and financial condition. The Company’s trade accounts receivable are typically collected within 30 days from the date of sale. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company evaluates the collectibility of its trade accounts receivable based on a number of factors, including the specific industry in which a particular customer operates. When the Company becomes aware of a customer’s inability to meet its financial obligations to the Company, a specific reserve for bad debts is estimated and recorded to reduce the recognized receivable to the estimated amount the Company believes will ultimately be collected. In addition to specific customer identification of potential bad debts, an allowance for doubtful accounts is recorded based on the Company’s recent past loss history and an overall assessment of past due trade accounts receivable outstanding. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined on the first-in, first-out method for finished products and manufacturing materials and on the average cost method for plastic shells, plastic pallets and other inventories. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements on operating leases are depreciated over the shorter of the estimated useful lives or the term of the lease, including renewal options the Company determines are reasonably assured. Additions and major replacements or betterments are added to the assets at cost. Maintenance and repair costs and minor replacements are charged to expense when incurred. When assets are replaced or otherwise disposed, the cost and accumulated depreciation are removed from the accounts and the gains or losses, if any, are reflected in the statement of operations. Gains or losses on the disposal of manufacturing equipment and manufacturing facilities are included in cost of sales. Gains or losses on the disposal of all other property, plant and equipment are included in selling, delivery and administrative (“S,D&A”) expenses. The Company evaluates the recoverability of the carrying amount of its property, plant and equipment when events or circumstances indicate the carrying amount of an asset or asset group may not be recoverable. These evaluations are performed at a level where independent cash flows may be attributed to either an asset or an asset group. If the Company determines the carrying amount of an asset or asset group is not recoverable based upon the expected undiscounted future cash flows of the asset or asset group, an impairment loss is recorded equal to the excess of the carrying amounts over the estimated fair value of the long-lived assets. |
Leased Property Under Capital Leases | Leased Property Under Capital Leases Leased property under capital leases is depreciated using the straight-line method over the lease term. |
Internal Use Software | Internal Use Software The Company capitalizes costs incurred in the development or acquisition of internal use software. The Company expenses costs incurred in the preliminary project planning stage. Costs, such as maintenance and training, are also expensed as incurred. Capitalized costs are amortized over their estimated useful lives using the straight-line method. Amortization expense, which is included in depreciation expense, for internal-use software was $11.9 million in 2017, $10.9 million in 2016 and $9.3 million in 2015. |
Goodwill | Goodwill All business combinations are accounted for using the acquisition method. Goodwill is tested for impairment annually, or more frequently if facts and circumstances indicate such assets may be impaired. The Company performs its annual impairment test, which includes a qualitative assessment to determine whether it is more likely than not that the fair value of the goodwill is below its carrying value, as of the first day of the fourth quarter each year, and more often if there are significant changes in business conditions that could result in impairment. The Company has determined it has one reporting unit, within the Nonalcoholic Beverages reportable segment, for the purpose of assessing goodwill for potential impairment. The Company uses its overall market capitalization as part of its estimate of fair value of the reporting unit and in assessing the reasonableness of the Company’s internal estimates of fair value. When a quantitative analysis is considered necessary for the annual impairment analysis of goodwill, the Company develops an estimated fair value for the reporting unit considering three different approaches: • market value, using the Company’s stock price plus outstanding debt; • discounted cash flow analysis; and • multiple of earnings before interest, taxes, depreciation and amortization based upon relevant industry data. The estimated fair value of the reporting unit is then compared to its carrying amount, including goodwill. If the estimated fair value exceeds the carrying amount, goodwill is not considered impaired, and the second step of the impairment test is not necessary. If the carrying amount, including goodwill, exceeds its estimated fair value, the second step of the impairment test is performed to measure the amount of the impairment, if any. In the second step, a comparison is made between the book value of goodwill and the implied fair value of goodwill. Implied fair value of goodwill is determined by comparing the fair value of the reporting unit to the book value of its net identifiable assets, excluding goodwill. To estimate the implied fair value of goodwill for a reporting unit, the Company assigns the fair value of the assets and liabilities associated with the reporting unit as if the reporting unit had been acquired in a business combination. Any excess of the carrying value of goodwill of the reporting unit over its implied fair value is recorded as an impairment. To the extent the actual and projected cash flows decline in the future or if market conditions significantly deteriorate, the Company may be required to perform an interim impairment analysis that could result in an impairment of goodwill. |
Distribution Agreements, Customer Lists and Other Identifiable Intangible Assets | Distribution Agreements, Customer Lists and Other Identifiable Intangible Assets The Company’s definite-lived intangible assets primarily consist of distribution rights and customer relationships, which have estimated useful lives of 20 to 40 years and 12 to 20 years, respectively. These assets are amortized on a straight-line basis over their estimated useful lives. In the first quarter of 2017, the Company converted its franchise rights to distribution rights with an estimated useful life of 40 years. |
Acquisition Related Contingent Consideration Liability | Acquisition Related Contingent Consideration Liability The acquisition related contingent consideration liability consists of the estimated amounts due to The Coca‑Cola Company under the Company’s comprehensive beverage agreement with The Coca‑Cola Company and CCR (the “CBA”) over the remaining useful life of the related distribution rights intangible assets. Under the CBA, the Company makes quarterly sub-bottling payments to CCR on a continuing basis for the grant of exclusive rights to distribute, promote, market and sell certain beverages and beverage products in the Expansion Territories. This acquisition related contingent consideration is 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 Expansion Territories to fair value by discounting future expected sub-bottling payments required under the CBA using the Company’s estimated WACC. These future expected sub-bottling payments extend through the life of the related distribution assets acquired in each Expansion Territory, which is generally 40 |
Pension and Postretirement Benefit Plans | Pension and Postretirement Benefit Plans There are two Company-sponsored pension plans. The primary Company-sponsored pension plan (the “Primary Plan”) was frozen as of June 30, 2006 and no benefits accrued to participants after this 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 actuarial determined amounts and are limited to the amounts currently deductible for income tax purposes. Costs of the plans are charged to current operations and include several components of net periodic pension cost based on actuarial assumptions regarding future expectations of the plans. In addition, certain other union employees are covered by plans provided by their respective union organizations and the Company expenses amounts as paid in accordance with union agreements. The Company recognizes the cost of postretirement benefits, which consist primarily of medical benefits, during employees’ periods of active service. Amounts recorded for benefit plans reflect estimates related to interest rates, investment returns, employee turnover and health care costs. The discount rate assumptions used to determine the pension and postretirement benefit obligations are based on yield rates available on double-A bonds as of each plan’s measurement date. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to operating losses and tax credit carryforwards, as well as differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance will be provided against deferred tax assets if the Company determines it is more likely than not such assets will not ultimately be realized. The Company does not recognize a tax benefit unless it concludes that it is more likely than not that the benefit will be sustained on audit by the taxing authority based solely on the technical merits of the associated tax position. If the recognition threshold is met, the Company recognizes a tax benefit measured at the largest amount of the tax benefit that, in the Company’s judgment, is greater than 50 percent likely to be realized. The Company records interest and penalties related to uncertain tax positions in income tax expense. |
Revenue Recognition | Revenue Recognition Revenues are recognized when finished products are delivered to customers and both the title and the risks and benefits of ownership are transferred, price is fixed and determinable, collection is reasonably assured and, in the event of full service vending, when cash is collected from the vending machines. Appropriate provisions are made for uncollectible accounts. The Company receives service fees from The Coca‑Cola Company for the delivery of fountain syrup products to The Coca‑Cola Company’s fountain customers and for the repair of fountain equipment owned by The Coca‑Cola Company. These service fees are recognized as revenue when the respective services are completed. Service revenue represents approximately one percent of net sales, and is presented within the Nonalcoholic Beverages segment. In addition to delivering its own products, the Company performs freight hauling and brokerage for third parties. The freight charges are recognized as revenue when the delivery is complete. Freight revenue from third parties represents approximately two percent of net sales, and is presented within the All Other segment. Revenues do not include sales or other taxes collected from customers. |
Marketing Programs and Sales Incentives | Marketing Programs and Sales Incentives The Company participates in various marketing and sales programs with The Coca‑Cola Company, other beverage companies and customers to increase the sale of its products. In addition, coupon programs are deployed on a territory-specific basis. The cost of these various marketing programs and sales incentives with The Coca‑Cola Company and other beverage companies, included as deductions to net sales, totaled $137.3 million in 2017, $117.0 million in 2016 and $71.4 million in 2015. Programs negotiated with customers include arrangements under which allowances can be earned for attaining agreed-upon sales levels and/or for participating in specific marketing programs. |
Marketing Funding Support | Marketing Funding Support The Company receives marketing funding support payments in cash from The Coca‑Cola Company and other beverage companies. Payments to the Company for marketing programs to promote bottle/can sales volume and fountain syrup sales volume are recognized as a reduction of cost of sales, primarily on a per unit basis, as the product is sold. Payments for periodic programs are recognized in the period during which they are earned. Cash consideration received by a customer from a vendor is presumed to be a reduction of the price of the vendor’s products or services. As such, the cash received is accounted for as a reduction of cost of sales unless it is a specific reimbursement of costs or payments for services. Payments the Company receives from The Coca‑Cola Company and other beverage companies for marketing funding support are classified as reductions of cost of sales. |
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 derivative instruments. The Company does not use derivative instruments for trading or speculative purposes. All derivative instruments are recorded at fair value as either assets or liabilities in the Company’s consolidated balance sheets. These derivative instruments are not designated as hedging instruments under GAAP and are used as “economic hedges” to manage certain commodity price risk. Derivative instruments held are marked to market on a monthly basis and recognized in earnings consistent with the expense classification of the underlying hedged item. Settlements of derivative agreements are included in cash flows from operating activities on the Company’s consolidated statements of cash flows. The Company uses several different financial institutions for commodity derivative instruments to minimize the concentration of credit risk. The Company generally pays a fee for these instruments, which is amortized over the corresponding period of the instrument. The Company accounts for its commodity hedges on a mark-to-market basis with any expense or income reflected as an adjustment of related costs which are included in either cost of sales or S,D&A expenses. |
Risk Management Programs | Risk Management Programs The Company uses various insurance structures to manage its workers’ compensation, auto liability, medical and other insurable risks. These structures consist of retentions, deductibles, limits and a diverse group of insurers that serve to strategically transfer and mitigate the financial impact of losses. The Company uses commercial insurance for claims as a risk reduction strategy to minimize catastrophic losses. Losses are accrued using assumptions and procedures followed in the insurance industry, adjusted for company-specific history and expectations. |
Cost of Sales | Cost of Sales Cost of sales includes the following: raw material costs, manufacturing labor, manufacturing overhead including depreciation expense, manufacturing warehousing costs, shipping and handling costs related to the movement of finished goods from manufacturing locations to sales distribution centers and the purchase of finished goods. Inputs representing a substantial portion of the Company’s total cost of sales include: (i) sweeteners, (ii) packaging materials, including plastic bottles and aluminum cans, and (iii) finished products purchased from other vendors. The Company’s cost of sales may not be comparable to other peer companies, as some peer companies include all costs related to their distribution network in cost of sales. The Company includes a portion of these costs in S,D&A expenses, as described below. |
Selling, Delivery and Administrative Expenses | Selling, Delivery and Administrative Expenses S,D&A expenses include the following: sales management labor costs, distribution costs from sales distribution centers to customer locations, sales distribution center warehouse costs, depreciation expense related to sales centers, delivery vehicles and cold drink equipment, point-of-sale expenses, advertising expenses, cold drink equipment repair costs, amortization of intangibles and administrative support labor and operating costs. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs related to the movement of finished goods from manufacturing locations to sales distribution centers are included in cost of sales. Shipping and handling costs related to the movement of finished goods from sales distribution centers to customer locations, including warehouse costs, are included in S,D&A expenses and totaled $550.9 million in 2017, $395.4 million in 2016 and $277.9 million in 2015. Delivery fees charged by the Company to retail customers are used to offset a portion of the Company’s delivery and handling costs. The fees are recorded in net sales and are presented within the Nonalcoholic Beverages segment. Delivery fees were $5.7 million in 2017, $6.0 million in 2016 and $6.3 million in 2015. |
Stock Compensation with Contingent Vesting | Stock Compensation with Contingent Vesting In April 2008, the stockholders of the Company approved a Performance Unit Award Agreement for J. Frank Harrison, III, the Company’s Chairman of the Board of Directors and Chief Executive Officer, consisting of 400,000 performance units (“Units”). Each Unit represents the right to receive one share of the Company’s Class B Common Stock, subject to certain terms and conditions. The Units are subject to vesting in annual increments over a ten-year period starting in fiscal year 2009. The number of Units that vest each year will be equal the product of 40,000 multiplied by the overall goal achievement factor, not to exceed 100%, under the Company’s Annual Bonus Plan. Each annual 40,000 unit tranche has an independent performance requirement that is not established until the Company’s Annual Bonus Plan targets are approved during the first quarter of each year by the Compensation Committee of the Board of Directors. As a result, each 40,000 unit tranche is considered to have its own service inception date, grant-date and requisite service period. The Performance Unit Award Agreement does not entitle Mr. Harrison, to participate in dividends or voting rights until each installment has vested and related shares are issued. Mr. Harrison may satisfy tax withholding requirements in whole or in part by requiring the Company to settle in cash such a number of units otherwise payable in Class B Common Stock to meet the maximum statutory tax withholding requirements. The Company recognizes compensation expense over the requisite service period (one fiscal year) based on the Company’s stock price at the end of each accounting period, unless the achievement of the performance requirement for the fiscal year is considered unlikely. See Note 20 to the consolidated financial statements for additional information on Mr. Harrison’s stock compensation program. |
Net Income Per Share | Net Income Per Share The Company applies the two-class method for calculating and presenting net income per share. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock according to dividends declared or accumulated and participation rights in undistributed earnings. Under this method: (a) Income from continuing operations (“net income”) is reduced by the amount of dividends declared in the current period for each class of stock and by the contractual amount of dividends that must be paid for the current period. (b) The remaining earnings (“undistributed earnings”) are allocated to Common Stock and Class B Common Stock to the extent each security may share in earnings as if all the earnings for the period had been distributed. The total earnings allocated to each security is determined by adding together the amount allocated for dividends and the amount allocated for a participation feature. (c) The total earnings allocated to each security is then divided by the number of outstanding shares of the security to which the earnings are allocated to determine the earnings per share for the security. (d) Basic and diluted earnings per share (“EPS”) data are presented for each class of common stock. In applying the two-class method, the Company determined undistributed earnings should be allocated equally on a per share basis between the Common Stock and Class B Common Stock due to the aggregate participation rights of the Class B Common Stock (i.e., the voting and conversion rights) and the Company’s history of paying dividends equally on a per share basis on the Common Stock and Class B Common Stock. Under the Company’s certificate of incorporation, the Board of Directors may declare dividends on Common Stock without declaring equal or any dividends on the Class B Common Stock. Notwithstanding this provision, Class B Common Stock has voting and conversion rights that allow the Class B Common Stock to participate equally on a per share basis with the Common Stock. The Class B Common Stock is entitled to 20 votes per share and the Common Stock is entitled to one vote per share with respect to each matter to be voted upon by the stockholders of the Company. Except as otherwise required by law, the holders of the Class B Common Stock and Common Stock vote together as a single class on all matters submitted to the Company’s stockholders, including the election of the Board of Directors. As a result, the holders of the Class B Common Stock control approximately 86% of the total voting power of the stockholders of the Company and control the election of the Board of Directors. The Board of Directors has declared and the Company has paid dividends on the Class B Common Stock and Common Stock and each class of common stock has participated equally in all dividends declared by the Board of Directors and paid by the Company since 1994. The Class B Common Stock conversion rights allow the Class B Common Stock to participate in dividends equally with the Common Stock. The Class B Common Stock is convertible into Common Stock on a one-for-one per share basis at any time at the option of the holder. Accordingly, the holders of the Class B Common Stock can participate equally in any dividends declared on the Common Stock by exercising their conversion rights. Basic EPS excludes potential common shares that were dilutive and is computed by dividing net income available for common stockholders by the weighted average number of Common and Class B Common shares outstanding. Diluted EPS for Common Stock and Class B Common Stock gives effect to all securities representing potential common shares that were dilutive and outstanding during the period. The Company does not have anti-dilutive shares. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) The Company adopted this guidance in the first quarter of 2017 and there was no impact to the Company’s consolidated financial statements. In July 2015, the FASB issued ASU 2015-11 “Simplifying the Measurement of Inventory.” The new guidance requires an entity to measure most inventory “at lower of cost and net realizable value” thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. The new guidance is effective for annual and interim periods beginning after December 15, 2016. The Company adopted this guidance in the first quarter of 2017 and there was no material impact to the Company’s consolidated financial statements. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In February 2018, the FASB issued ASU 2018‑02 “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (“Tax Act”). The new guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years and can be early adopted. The Company is still evaluating the impacts of this standard should it choose to make this reclassification. In March 2017, the FASB issued ASU 2017‑07 “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which requires that the service cost component of the Company’s net periodic pension cost and net periodic postretirement benefit cost be included in the same line item as other compensation costs arising from services rendered by employees, with the non-service cost components of net periodic benefit cost being classified outside of a subtotal of income from operations. Of the components of net periodic benefit cost, only the service cost component will be eligible for asset capitalization. The new guidance is effective for annual periods beginning after December 31, 2017, including interim periods within those annual periods. The Company will adopt the new accounting standards on January 1, 2018 using the practical expedient which allows entities to use information previously disclosed in their pension and other postretirement benefit plans note as the estimation basis to apply the retrospective presentation requirements in ASU 2017-07. For 2017 and 2016, the Company expects to reclassify $5.4 million and $3.3 million, respectively, related to its non-service cost components of net periodic benefit cost and other benefit plan charges from income from operations to other income (expense), net in the consolidated financial statements. The Company will record the service cost component of net periodic benefit cost in selling, delivery and administrative expenses in the consolidated financial statements. In 2018, the Company expects to record service cost of $7.7 million and $2.7 million related to its non-service cost components of net periodic benefit cost and other benefit plan charges, respectively. In January 2017, the FASB issued ASU 2017-04 “Simplifying the Test for Goodwill Impairment,” which The new guidance is effective for the annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 and can be early adopted. The Company does not anticipate the adoption of this guidance will have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01 “Clarifying the Definition of a Business,” which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The new guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The impact to the Company’s consolidated financial statements will depend on the facts and circumstances of any specific future transactions. In February 2016, the FASB issued ASU 2016-02 “Leases,” which requires lessees to recognize a right-to-use asset and a lease liability for virtually all leases (other than leases meeting the definition of a short-term lease). The new guidance is effective for fiscal years beginning after December 15, 2018 and interim periods beginning the following fiscal year. The Company is in the process of evaluating the impact of the new guidance on the Company’s consolidated financial statements and anticipates this impact will be material to its consolidated balance sheets. Additionally, the Company is evaluating the impacts of the standard beyond accounting, including system, data and process changes required to comply with the standard. In January 2016, the FASB issued ASU 2016-01 “Recognition and Measurement of Financial Assets and Financial Liabilities,” which revises the classification and measurement of investments in equity securities and the presentation of certain fair value changes in financial liabilities measured at fair value. The new guidance is effective for annual and interim periods beginning after December 31, 2017. The Company will adopt the new accounting standards on January 1, 2018 and does not anticipate the adoption of this guidance will have a material impact on its consolidated financial statements. Over the past several years, the FASB has issued several accounting standards for revenue recognition: • ASU 2014‑09 “Revenue from Contracts with Customers” was issued in May 2014, which was originally going to be effective for annual and interim periods beginning after December 15, 2016. • ASU 2015-14 “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date” was issued in August 2015, which deferred the effective date to annual and interim periods beginning after December 15, 2017. • ASU 2016-08 “Principal Versus Agent Considerations (Reporting Revenue Gross Versus Net)” was issued in March 2016, which amended certain aspects of ASU 2014‑09. • ASU 2016-11 “Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting” was issued in May 2016, which amended certain aspects of ASU 2014‑09. • ASU 2016-12 “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” was issued in May 2016, which amended certain aspects of ASU 2014‑09. • ASU 2016-20 “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers” was issued in December 2016, which clarified the new revenue standard and corrected unintended application of the guidance. The Company will adopt the new accounting standards on January 1, 2018 using a modified retrospective approach. The Company is in the process of finalizing its assessment of the impact of the new guidance on the Company’s consolidated financial statements. The approach the Company took during the assessment process was identifying and performing detailed walkthroughs of key revenue streams, including high level contract review, then performing detailed contract reviews for all revenue streams in order to evaluate revenue recognition requirements and prepare an implementation work plan. Based on the Company’s current assessment, it does not expect this guidance to have a material impact on the Company’s consolidated financial statements. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Carrying Value of Assets and Liabilities of Divesture | The carrying value of assets and liabilities in the Deep South and Somerset Exchange Business divested in the CCR Exchange Transaction and the Florence and Laurel Distribution Business divested in the United Exchange Transaction (together, the “October 2017 Divestitures”) are summarized as follows: (in thousands) October 2017 Divestitures Cash $ 303 Inventories 13,717 Prepaid expenses and other current assets 1,199 Property, plant and equipment 44,380 Other assets (including deferred taxes) 604 Goodwill 13,073 Distribution agreements 65,043 Total divested assets $ 138,319 Other current liabilities $ 5,683 Pension and postretirement benefit obligations 16,855 Total divested liabilities $ 22,538 |
BYB Brands Inc [Member] | |
Schedule of Consolidated Statement of Operations | BYB contributed the following amounts to the Company’s consolidated statement of operations: (in thousands) 2015 Net sales $ 23,875 Income from operations 1,809 |
2017 Acquisition [Member] | |
Summary of Fair Values of Acquired Assets and Assumed Liabilities as of Acquisition Date | The fair value of acquired assets and assumed liabilities in the 2017 System Transformation Transactions as of the acquisition dates is summarized as follows: (in thousands) January 2017 Transaction March 2017 Transactions April 2017 Transactions October 2017 Transactions Acquisitions Total 2017 Transactions Cash $ 107 $ 211 $ 103 $ 191 $ 612 Inventories 5,953 20,952 14,554 14,850 56,309 Prepaid expenses and other current assets 1,155 5,117 4,068 4,754 15,094 Accounts receivable from The Coca-Cola Company 1,042 1,807 2,552 2,391 7,792 Property, plant and equipment 25,708 81,638 52,263 70,645 230,254 Other assets (including deferred taxes) 1,158 3,227 4,369 889 9,643 Goodwill 1,544 2,527 17,804 13,992 35,867 Distribution agreements 22,000 46,750 19,500 124,750 213,000 Customer lists 1,500 1,750 1,000 4,950 9,200 Total acquired assets $ 60,167 $ 163,979 $ 116,213 $ 237,412 $ 577,771 Current liabilities (acquisition related contingent consideration) $ 1,350 $ 2,958 $ 1,546 $ 1,458 $ 7,312 Other current liabilities 324 3,760 2,860 6,492 13,436 Other liabilities (acquisition related contingent consideration) 26,377 49,739 26,604 18,848 121,568 Other liabilities 43 2,953 2,005 95 5,096 Total assumed liabilities $ 28,094 $ 59,410 $ 33,015 $ 26,893 $ 147,412 |
October 2017 Transactions Acquisitions [Member] | |
Summary of Acquired Assets and Assumed Liabilities as of Acquisition Date | As part of the “October 2017 Transactions Acquisitions,” which include the Expansion Territories and the Expansion Facilities acquired in the CCR Exchange Transaction (the “CCR Exchange Transaction Acquisitions”), the Memphis Transaction and the United Exchange Transaction (the “United Exchange Transaction Acquisitions”), the Company’s acquired assets and assumed liabilities as of the acquisition dates are summarized as follows: (in thousands) CCR Exchange Transaction Acquisitions Memphis Transaction United Exchange Transaction Acquisitions October 2017 Transactions Acquisitions Cash $ 91 $ 100 $ - $ 191 Inventories 10,667 3,354 829 14,850 Prepaid expenses and other current assets 3,218 1,222 314 4,754 Accounts receivable from The Coca-Cola Company 1,092 1,089 210 2,391 Property, plant and equipment 47,066 20,795 2,784 70,645 Other assets (including deferred taxes) 624 265 - 889 Goodwill 6,378 4,917 2,697 13,992 Distribution agreements 80,500 30,300 13,950 124,750 Customer lists 3,200 1,200 550 4,950 Total acquired assets $ 152,836 $ 63,242 $ 21,334 $ 237,412 Current liabilities (acquisition related contingent consideration) $ - $ 1,458 $ - $ 1,458 Other current liabilities 2,760 3,241 491 6,492 Other liabilities (acquisition related contingent consideration) - 18,848 - 18,848 Other liabilities 1 94 - 95 Total assumed liabilities $ 2,761 $ 23,641 $ 491 $ 26,893 |
2016 Acquisition [Member] | |
Summary of Fair Values of Acquired Assets and Assumed Liabilities as of Acquisition Date | The fair value of acquired assets and assumed liabilities of the 2016 System Transformation Transactions as of the acquisition dates is summarized as follows: (in thousands) January 2016 Transactions April 1, 2016 Transaction April 29, 2016 Transactions October 2016 Transactions Total 2016 Transactions Cash $ 179 $ 219 $ 161 $ 150 $ 709 Inventories 10,159 3,748 13,850 18,513 46,270 Prepaid expenses and other current assets 2,775 1,945 3,774 4,228 12,722 Accounts receivable from The Coca-Cola Company 1,121 1,162 1,126 1,327 4,736 Property, plant and equipment 46,149 54,135 57,738 67,943 225,965 Other assets (including deferred taxes) 2,351 1,541 5,514 682 10,088 Goodwill 9,396 1,962 8,368 8,473 28,199 Distribution agreements 750 - 22,000 79,900 102,650 Customer lists 550 - 1,450 2,750 4,750 Total acquired assets $ 73,430 $ 64,712 $ 113,981 $ 183,966 $ 436,089 Current liabilities (acquisition related contingent consideration) $ 361 $ 742 $ 1,307 $ 3,973 $ 6,383 Other current liabilities 591 4,231 5,482 8,513 18,817 Accounts payable to The Coca-Cola Company 650 - - - 650 Other liabilities (acquisition related contingent consideration) 6,144 23,924 35,561 71,237 136,866 Other liabilities - 266 2,635 573 3,474 Total assumed liabilities $ 7,746 $ 29,163 $ 44,985 $ 84,296 $ 166,190 |
2015 Expansion Territories and 2016 and 2017 System Transformation Transactions and 2015 Asset Exchange [Member] | |
Schedule of Consolidated Statement of Operations | The financial results of the 2017 System Transformation Transactions, the 2016 System Transformation Transactions, the 2015 Expansion Territories and the 2015 Asset Exchange Fiscal Year (in thousands) 2017 2016 2015 Net sales from 2015 Expansion Territories & 2015 Asset Exchange $ 484,485 $ 469,440 $ 278,691 Net sales from 2016 System Transformation Transactions 1,011,638 592,329 - Net sales from 2017 System Transformation Transactions 740,259 - - Total System Transformation Transactions impact to net sales $ 2,236,382 $ 1,061,769 $ 278,691 Income from operations from 2015 Expansion Territories & 2015 Asset Exchange $ 1,540 $ 1,907 $ 3,364 Income from operations from 2016 System Transformation Transactions 18,930 22,373 - Income from operations from 2017 System Transformation Transactions 10,754 - - Total System Transformation Transactions impact to income from operations $ 31,224 $ 24,280 $ 3,364 |
2016 and 2017 System Transformation Transactions [Member] | |
Schedule of Unaudited Pro Forma Information | The following tables represent the Company’s unaudited pro forma net sales and unaudited pro forma income from operations for the 2017 System Transformation Transactions and the 2016 System Transformation Transactions. Fiscal Year (in thousands) 2017 2016 Net sales as reported $ 4,323,668 $ 3,156,428 Pro forma adjustments (unaudited) 196,224 1,153,358 Net sales pro forma (unaudited) $ 4,519,892 $ 4,309,786 Fiscal Year (in thousands) 2017 2016 Income from operations as reported $ 96,179 $ 127,859 Pro forma adjustments (unaudited) 5,391 76,906 Income from operations pro forma (unaudited) $ 101,570 $ 204,765 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consisted of the following: (in thousands) December 31, 2017 January 1, 2017 Finished products $ 116,354 $ 90,259 Manufacturing materials 33,073 23,196 Plastic shells, plastic pallets and other inventories 34,191 30,098 Total inventories $ 183,618 $ 143,553 |
Prepaid Expenses and Other Cu42
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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) December 31, 2017 January 1, 2017 Current portion of income taxes $ 35,930 $ 21,227 Repair parts 30,530 20,338 Prepayments for sponsorships 6,358 1,879 Prepaid software 5,855 5,331 Commodity hedges at fair market value 4,420 1,289 Other prepaid expenses and other current assets 17,553 13,770 Total prepaid expenses and other current assets $ 100,646 $ 63,834 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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: Estimated (in thousands) December 31, 2017 January 1, 2017 Useful Lives Land $ 78,825 $ 68,541 Buildings 211,308 201,247 8-50 years Machinery and equipment 315,117 229,119 5-20 years Transportation equipment 351,479 316,929 4-20 years Furniture and fixtures 89,559 78,219 3-10 years Cold drink dispensing equipment 488,208 484,771 5-17 years Leasehold and land improvements 125,348 112,393 5-20 years Software for internal use 113,490 105,405 3-10 years Construction in progress 25,490 14,818 Total property, plant and equipment, at cost 1,798,824 1,611,442 Less: Accumulated depreciation and amortization 767,436 798,453 Property, plant and equipment, net $ 1,031,388 $ 812,989 |
Leased Property Under Capital44
Leased Property Under Capital Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Leased Property Under Capital Leases | Leased property under capital leases, which consisted of real estate and have an estimated useful life of 3 to 20 years, were as following: (in thousands) December 31, 2017 January 1, 2017 Leased property under capital leases $ 95,870 $ 94,125 Less: Accumulated amortization 66,033 60,573 Leased property under capital leases, net $ 29,837 $ 33,552 |
Franchise Rights (Tables)
Franchise Rights (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Reconciliation of Activity for Franchise Rights | A reconciliation of the activity for franchise rights for 2017 and 2016 is as follows: Fiscal Year (in thousands) 2017 2016 Beginning balance - franchise rights $ 533,040 $ 527,540 Conversion from franchise rights to distribution rights (533,040 ) - 2015 Asset Exchange - 5,500 Ending balance - franchise rights $ - $ 533,040 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Reconciliation of Activity for Goodwill | A reconciliation of the activity for goodwill for 2017 and 2016 is as follows: Fiscal Year (in thousands) 2017 2016 Beginning balance - goodwill $ 144,586 $ 117,954 System Transformation Transactions acquisitions (1) 35,867 26,272 October 2017 Divestitures (13,073 ) - 2015 Asset Exchange - (682 ) Measurement period adjustments (2) 1,936 1,042 Ending balance - goodwill $ 169,316 $ 144,586 (1) (2) |
Distribution Agreements, Net (T
Distribution Agreements, Net (Tables) - Distribution Agreements [Member] | 12 Months Ended |
Dec. 31, 2017 | |
Other Identifiable Intangible Assets Net | Distribution agreements, net, which are amortized on a straight line basis and have an estimated useful life of 20 to 40 years, consisted of the following: (in thousands) December 31, 2017 January 1, 2017 Distribution agreements at cost $ 939,527 $ 242,486 Less: Accumulated amortization 26,175 7,498 Distribution agreements, net $ 913,352 $ 234,988 |
Reconciliation of Activity for Other Identifiable Intangible Assets Net | A reconciliation of the activity for distribution agreements, net for 2017 and 2016 is as follows: Fiscal Year (in thousands) 2017 2016 Beginning balance - distribution agreements, net $ 234,988 $ 129,786 Conversion to distribution rights from franchise rights 533,040 - System Transformation Transactions acquisitions (1) 213,000 86,650 October 2017 Divestitures (65,043 ) - Measurement period adjustment (2) 16,000 - Glacéau Distribution Agreement - 21,032 Other distribution agreements 44 1,695 Additional accumulated amortization (18,677 ) (4,175 ) Ending balance - distribution agreements, net $ 913,352 $ 234,988 (1) (2) |
Customer Lists and Other Iden48
Customer Lists and Other Identifiable Intangible Assets, Net (Tables) - Customer Lists and Other Identifiable Intangible Assets [Member] | 12 Months Ended |
Dec. 31, 2017 | |
Other Identifiable Intangible Assets Net | Customer lists and other identifiable intangible assets, net, which are amortized on a straight line basis and have an estimated useful life of 12 to 20 years, consisted of the following: (in thousands) December 31, 2017 January 1, 2017 Customer lists and other identifiable intangible assets at cost $ 25,288 $ 15,938 Less: Accumulated amortization 6,968 5,511 Customer lists and other identifiable intangible assets, net $ 18,320 $ 10,427 |
Reconciliation of Activity for Other Identifiable Intangible Assets Net | A reconciliation of the activity for customer lists and other identifiable intangible assets, net for 2017 and 2016 is as follows: Fiscal Year (in thousands) 2017 2016 Beginning balance - customer lists and other identifiable intangible assets, net $ 10,427 $ 6,662 System Transformation Transactions acquisitions (1) 9,200 4,600 Measurement period adjustment (2) 150 - Additional accumulated amortization (1,457 ) (835 ) Ending balance - customer lists and other identifiable intangible assets, net $ 18,320 $ 10,427 (1) (2) |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables And Accruals [Abstract] | |
Summary of Other Accrued Liabilities | Other accrued liabilities consisted of the following: (in thousands) December 31, 2017 January 1, 2017 Checks and transfers yet to be presented for payment from zero balance cash accounts $ 37,262 $ 19,326 Accrued insurance costs 35,433 28,248 Accrued marketing costs 33,376 24,714 Employee and retiree benefit plan accruals 27,024 23,858 Current portion of acquisition related contingent consideration 23,339 15,782 Accrued taxes (other than income taxes) 6,391 2,836 Current deferred proceeds from bottling agreements conversion 2,286 - All other accrued expenses 20,419 19,121 Total other accrued liabilities $ 185,530 $ 133,885 See Note 22 to the consolidated financial statements for additional information on the proceeds from the bottling agreements conversion. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Debt | Following is a summary of the Company’s debt: (in thousands) Maturity Interest Rate Interest Paid Public / Non-public December 31, 2017 January 1, 2017 Revolving credit facility 2019 Variable Varies Non-public $ 207,000 $ 152,000 Term Loan 2021 Variable Varies Non-public 300,000 300,000 Senior Notes 2023 3.28% Semi-annually Non-public 125,000 - Senior Notes 2019 7.00% Semi-annually Public 110,000 110,000 Senior Notes 2025 3.80% Semi-annually Public 350,000 350,000 Unamortized discount on Senior Notes (1) 2019 (332 ) (570 ) Unamortized discount on Senior Notes (1) 2025 (70 ) (78 ) Debt issuance costs (3,580 ) (4,098 ) Total debt 1,088,018 907,254 Less: Current portion of debt - - Long-term debt $ 1,088,018 $ 907,254 (1) The Senior Notes due 2019 were issued at 98.238% of par and the Senior Notes due 2025 were issued at 99.975% of par. |
Principal Maturities of Debt Outstanding | The principal maturities of debt outstanding on December 31, 2017 were as follows: (in thousands) Debt Maturities 2018 $ 15,000 2019 347,000 2020 37,500 2021 217,500 2022 - Thereafter 475,000 Total debt $ 1,092,000 |
Derivative Financial Instrume51
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 value of the Company’s commodity derivative financial instruments and the classification of such changes in the consolidated statements of operations. Fiscal Year (in thousands) Classification of Gain (Loss) 2017 2016 2015 Commodity hedges Cost of sales $ 2,815 $ 2,896 $ (2,354 ) Commodity hedges Selling, delivery and administrative expenses 315 1,832 (1,085 ) Total gain (loss) $ 3,130 $ 4,728 $ (3,439 ) |
Summary of Fair Values and Classification in Consolidated Balance Sheets of Derivative Instruments | The following table summarizes the fair values and classification in the consolidated balance sheets of derivative instruments held by the Company: (in thousands) Balance Sheet Classification December 31, 2017 January 1, 2017 Assets: Commodity hedges at fair market value Prepaid expenses and other current assets $ 4,420 $ 1,289 Total assets $ 4,420 $ 1,289 |
Summary of Gross Derivative Assets and Gross Derivative Liabilities in Consolidated Balance Sheets | The following table summarizes the Company’s gross derivative assets and gross derivative liabilities in the consolidated balance sheets (in thousands) December 31, 2017 January 1, 2017 Gross derivative assets $ 4,481 $ 1,297 Gross derivative liabilities 61 8 |
Summary of Outstanding Commodity Derivative Agreements | The following table summarizes the Company’s outstanding commodity derivative agreements: (in thousands) December 31, 2017 January 1, 2017 Notional amount of outstanding commodity derivative agreements $ 59,564 $ 13,146 Latest maturity date of outstanding commodity derivative agreements December 2018 December 2017 |
Fair Values of Financial Inst52
Fair Values of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Deferred Compensation Plan Commodity Hedging Agreements and Acquisition Related Contingent Consideration | The following tables summarize, by assets and liabilities, the carrying amounts and fair values by level of the Company’s deferred compensation plan, commodity hedging agreements, debt and acquisition related contingent consideration: December 31, 2017 Carrying Total Fair Value Fair Value Fair Value (in thousands) Amount Fair Value Level 1 Level 2 Level 3 Assets: Deferred compensation plan assets $ 33,166 $ 33,166 $ 33,166 $ - $ - Commodity hedging agreements 4,420 4,420 - 4,420 - Liabilities: Deferred compensation plan liabilities 33,166 33,166 33,166 - - Non-public variable rate debt 506,398 507,000 - 507,000 - Non-public fixed rate debt 124,829 126,400 - 126,400 - Public debt securities 456,791 475,100 - 475,100 - Acquisition related contingent consideration 381,291 381,291 - - 381,291 January 1, 2017 Carrying Total Fair Value Fair Value Fair Value (in thousands) Amount Fair Value Level 1 Level 2 Level 3 Assets: Deferred compensation plan assets $ 24,903 $ 24,903 $ 24,903 $ - $ - Commodity hedging agreements 1,289 1,289 - 1,289 - Liabilities: Deferred compensation plan liabilities 24,903 24,903 24,903 - - Non-public variable rate debt 451,222 452,000 - 452,000 - Public debt securities 456,032 475,800 - 475,800 - Acquisition related contingent consideration 253,437 253,437 - - 253,437 |
Summary of Reconciliation of Acquisition Related Contingent Consideration | The acquisition related contingent consideration is the Company’s only Level 3 asset or liability. A reconciliation of the Level 3 activity is as follows: Fiscal Year (in thousands) 2017 2016 Opening balance - Level 3 liability $ 253,437 $ 136,570 Increase due to System Transformation Transactions acquisitions (1) 128,880 133,857 Measurement period adjustment (2) 14,826 - Payment of acquisition related contingent consideration (16,738 ) (13,550 ) Reclassification to current payables (2,340 ) (1,530 ) (Favorable)/unfavorable fair value adjustment 3,226 (1,910 ) Ending balance - Level 3 liability $ 381,291 $ 253,437 (1 ) (2) |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables And Accruals [Abstract] | |
Summary of Other Liabilities | Other liabilities consisted of the following: (in thousands) December 31, 2017 January 1, 2017 Non-current portion of acquisition related contingent consideration $ 357,952 $ 237,655 Accruals for executive benefit plans 125,791 123,078 Non-current deferred proceeds from bottling agreements conversion 87,449 - Non-current deferred proceeds from Legacy Facilities Credit 29,881 - Other 19,506 17,839 Total other liabilities $ 620,579 $ 378,572 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Future Minimum Lease Payments Including Renewal Options for all Noncancellable Operating Leases and Capital Leases | The following is a summary of future minimum lease payments, including renewal options the Company has determined to be reasonably assured, for all noncancellable operating leases and capital leases as of December 31, 2017: (in thousands) Capital Operating Leases Total 2018 $ 10,706 $ 12,497 $ 23,203 2019 10,434 11,872 22,306 2020 10,613 11,380 21,993 2021 6,218 10,879 17,097 2022 2,697 9,867 12,564 Thereafter 10,859 34,717 45,576 Total minimum lease payments including interest $ 51,527 $ 91,212 $ 142,739 Less: Amounts representing interest 8,058 Present value of minimum lease principal payments 43,469 Less: Current portion of principal payment obligations under capital leases 8,221 Long-term portion of principal payment obligations under capital leases $ 35,248 |
Summary of Company's Purchases from Manufacturing Cooperatives | The following table summarizes the Company’s purchases from these manufacturing cooperatives: Fiscal Year (in thousands) 2017 2016 2015 Purchases from SAC $ 148,511 $ 149,878 $ 144,511 Purchases from Southeastern 108,528 80,123 63,257 Total purchases from manufacturing cooperatives $ 257,039 $ 230,001 $ 207,768 |
Summary of Guaranteed Debt and Maximum Exposure under Guarantees | The following table summarizes the Company’s maximum exposure under this guarantee if SAC had borrowed up to its aggregate borrowing capacity: (in thousands) December 31, 2017 Maximum guaranteed debt $ 23,938 Equity investments (1) 7,325 Maximum total exposure, including equity investments $ 31,263 Recorded in other assets on the Company’s consolidated balance sheets using the equity method. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Significant Components of the Provision for Income Taxes | The following table presents the significant components of the provision for income taxes: Fiscal Year (in thousands) 2017 2016 2015 Current: Federal $ 12,978 $ (6,920 ) $ 20,107 State 5,292 27 3,563 Total current provision (benefit) $ 18,270 $ (6,893 ) $ 23,670 Deferred: Federal $ (54,232 ) $ 39,644 $ 10,638 State (3,879 ) 3,298 (230 ) Total deferred provision (benefit) $ (58,111 ) $ 42,942 $ 10,408 Income tax expense (benefit) $ (39,841 ) $ 36,049 $ 34,078 |
Reconciliation of Income Tax Expense at Statutory Federal Rate to Actual Income Tax Expense | The following table provides a reconciliation of income tax expense (benefit) at the statutory federal rate to actual income tax expense (benefit). Fiscal Year 2017 2016 2015 (in thousands) Income tax expense % pre-tax income Income tax expense % pre-tax income Income tax expense % pre-tax income Statutory expense $ 22,052 35.0 % $ 32,449 35.0 % $ 34,692 35.0 % Adjustment for federal tax legislation (69,014 ) (109.5 ) - - - - Meals and entertainment 2,771 4.4 1,879 2.0 1,666 1.7 Valuation allowance change 2,718 4.3 (689 ) (0.7 ) (1,332 ) (1.3 ) State income taxes, net of federal benefit 2,029 3.2 3,243 3.5 3,496 3.5 Noncontrolling interest – Piedmont (1,692 ) (2.7 ) (2,406 ) (2.6 ) (2,261 ) (2.3 ) Adjustment for uncertain tax positions (521 ) (0.8 ) (43 ) - 51 0.1 Adjustment for state tax legislation - - (625 ) (0.7 ) (1,145 ) (1.2 ) Manufacturing deduction benefit - - (56 ) (0.1 ) (1,330 ) (1.3 ) Bargain purchase gain - - - - (704 ) (0.7 ) Other, net 1,816 2.9 2,297 2.5 945 0.9 Income tax expense (benefit) $ (39,841 ) (63.2)% $ 36,049 38.9 % $ 34,078 34.4 % |
Reconciliation of Uncertain Tax Positions Excluding Accrued Interest | A reconciliation of uncertain tax positions, excluding accrued interest, is as follows: Fiscal Year (in thousands) 2017 2016 2015 Gross uncertain tax positions at the beginning of the year $ 2,679 $ 2,633 $ 2,620 Increase as a result of tax positions taken in the current period 966 687 547 Reduction as a result of the expiration of the applicable statute of limitations (1,359 ) (641 ) (534 ) Gross uncertain tax positions at the end of the year $ 2,286 $ 2,679 $ 2,633 |
Temporary Differences and Carryforwards that Comprised Deferred Income Tax Assets and Liabilities | Temporary differences and carryforwards that comprised deferred income tax assets and liabilities were as follows: (in thousands) December 31, 2017 January 1, 2017 Acquisition related contingent consideration $ 94,055 $ 97,573 Deferred compensation 27,097 44,185 Deferred revenue 18,704 - Postretirement benefits 16,443 32,656 Accrued liabilities 15,523 21,666 Pension (nonunion) 8,303 17,381 Transactional costs 5,733 7,155 Capital lease agreements 3,377 5,817 Charitable contribution carryover 3,770 4,409 Pension (union) 1,922 3,162 Net operating loss carryforwards 1,923 2,148 Other 1,669 111 Deferred income tax assets $ 198,519 $ 236,263 Less: Valuation allowance for deferred tax assets 4,337 1,618 Net deferred income tax asset $ 194,182 $ 234,645 Intangible assets $ (154,425 ) $ (204,661 ) Depreciation (105,685 ) (134,872 ) Investment in Piedmont (25,895 ) (45,128 ) Inventory (9,781 ) (13,814 ) Prepaid expenses (8,399 ) (6,300 ) Patronage dividend (2,361 ) (4,724 ) Deferred income tax liabilities $ (306,546 ) $ (409,499 ) Net deferred income tax liability $ (112,364 ) $ (174,854 ) |
Accumulated Other Comprehensi56
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Summary of Accumulated Other Comprehensive (Loss) | A summary of AOCI(L) for 2017, 2016 and 2015 is as follows: Gains (Losses) During the Period Reclassification to Income January 1, Pre-tax Tax Pre-tax Tax December 31, (in thousands) 2017 Activity Effect Activity Effect 2017 Net pension activity: Actuarial loss $ (72,393 ) $ (11,219 ) $ 2,768 $ 3,402 $ (1,176 ) $ (78,618 ) Prior service costs (61 ) - - 28 (10 ) (43 ) Net postretirement benefits activity: Actuarial loss (24,111 ) (1,796 ) 443 2,942 (997 ) (23,519 ) Prior service costs 3,679 - - (2,982 ) 1,047 1,744 Recognized loss due to divestiture of the Deep South and Somerset Exchange Business and the Florence and Laurel Distribution Business - - - 8,257 (2,037 ) 6,220 Foreign currency translation adjustment (11 ) - - 40 (15 ) 14 Total AOCI(L) $ (92,897 ) $ (13,015 ) $ 3,211 $ 11,687 $ (3,188 ) $ (94,202 ) Gains (Losses) During the Period Reclassification to Income January 3, Pre-tax Tax Pre-tax Tax January 1, (in thousands) 2016 Activity Effect Activity Effect 2017 Net pension activity: Actuarial loss $ (68,243 ) $ (9,777 ) $ 3,764 $ 3,031 $ (1,168 ) $ (72,393 ) Prior service costs (78 ) - - 28 (11 ) (61 ) Net postretirement benefits activity: Actuarial loss (19,825 ) (9,152 ) 3,523 2,186 (843 ) (24,111 ) Prior service costs 5,744 - - (3,360 ) 1,295 3,679 Foreign currency translation adjustment (5 ) - - (11 ) 5 (11 ) Total AOCI(L) $ (82,407 ) $ (18,929 ) $ 7,287 $ 1,874 $ (722 ) $ (92,897 ) Gains (Losses) During the Period Reclassification to Income December 28, Pre-tax Tax Pre-tax Tax January 3, (in thousands) 2014 Activity Effect Activity Effect 2016 Net pension activity: Actuarial loss $ (74,867 ) $ 7,513 $ (2,877 ) $ 3,230 $ (1,242 ) $ (68,243 ) Prior service costs (99 ) - - 35 (14 ) (78 ) Net postretirement benefits activity: Actuarial loss (22,759 ) 1,599 (613 ) 3,164 (1,216 ) (19,825 ) Prior service costs 7,812 - - (3,360 ) 1,292 5,744 Foreign currency translation adjustment (1 ) - - (8 ) 4 (5 ) Total AOCI(L) $ (89,914 ) $ 9,112 $ (3,490 ) $ 3,061 $ (1,176 ) $ (82,407 ) |
Summary of Impact of Accumulated Other Comprehensive Income (Loss) on Income Statement | A summary of the impact on the income statement line items is as follows: Fiscal 2017 (in thousands) Net Pension Activity Net Postretirement Benefits Activity Foreign Currency Translation Adjustment Total Cost of sales $ 377 $ (9 ) $ - $ 368 S,D&A expenses 3,053 (31 ) 40 3,062 Subtotal pre-tax 3,430 (40 ) 40 3,430 Income tax expense 1,186 (50 ) 15 1,151 Total after tax effect $ 2,244 $ 10 $ 25 $ 2,279 Fiscal 2016 (in thousands) Net Pension Activity Net Postretirement Benefits Activity Foreign Currency Translation Adjustment Total Cost of sales $ 331 $ (174 ) $ - $ 157 S,D&A expenses 2,728 (1,000 ) (11 ) 1,717 Subtotal pre-tax 3,059 (1,174 ) (11 ) 1,874 Income tax expense 1,179 (452 ) (5 ) 722 Total after tax effect $ 1,880 $ (722 ) $ (6 ) $ 1,152 Fiscal 2015 (in thousands) Net Pension Activity Net Postretirement Benefits Activity Foreign Currency Translation Adjustment Total Cost of sales $ 359 $ (27 ) $ - $ 332 S,D&A expenses 2,906 (169 ) (8 ) 2,729 Subtotal pre-tax 3,265 (196 ) (8 ) 3,061 Income tax expense 1,256 (76 ) (4 ) 1,176 Total after tax effect $ 2,009 $ (120 ) $ (4 ) $ 1,885 |
Capital Transactions (Tables)
Capital Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Summary of Awards | A summary of the awards issued in 2017, 2016 and 2015 is as follows: Fiscal Year 2017 2016 2015 Date of approval for award March 7, 2017 March 8, 2016 March 3, 2015 Fiscal year of service covered by award 2016 2015 2014 Shares settled in cash 18,980 19,080 19,080 Increase in Class B Common Stock shares outstanding 21,020 20,920 20,920 Total Class B Common Stock awarded 40,000 40,000 40,000 |
Compensation Expense for the Performance Unit Award Agreement | Compensation expense for the Performance Unit Award Agreement, recognized on the share price of the last trading day prior to the end of the fiscal year, was as follows: Fiscal Year (in thousands, except per share data) 2017 2016 2015 Total compensation expense $ 7,922 $ 7,154 $ 7,300 Share price for compensation expense $ 215.26 $ 178.85 $ 182.51 Share price date for compensation expense December 29, 2017 December 30, 2016 December 31, 2015 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Changes in Projected Benefit Obligation | The following tables set forth pertinent information for the two Company-sponsored pension plans: Changes in Projected Benefit Obligation Fiscal Year (in thousands) 2017 2016 Projected benefit obligation at beginning of year $ 273,148 $ 261,469 Service cost 2,553 461 Interest cost 11,938 12,182 Actuarial loss 27,388 8,268 Benefits paid (11,109 ) (9,232 ) Projected benefit obligation at end of year $ 303,918 $ 273,148 |
Change in Plan Assets | Change in Plan Assets Fiscal Year (in thousands) 2017 2016 Fair value of plan assets at beginning of year $ 228,256 $ 214,055 Actual return on plan assets 29,766 12,313 Employer contributions 11,600 11,120 Benefits paid (11,109 ) (9,232 ) Fair value of plan assets at end of year $ 258,513 $ 228,256 |
Funded Status | Funded Status (in thousands) December 31, 2017 January 1, 2017 Projected benefit obligation $ (303,918 ) $ (273,148 ) Plan assets at fair value 258,513 228,256 Net funded status $ (45,405 ) $ (44,892 ) |
Amounts Recognized in the Consolidated Balance Sheet | Amounts Recognized in the Consolidated Balance Sheets (in thousands) December 31, 2017 January 1, 2017 Current liabilities $ - $ - Noncurrent liabilities (45,405 ) (44,892 ) Total liability - pension plans $ (45,405 ) $ (44,892 ) |
Net Periodic Pension Cost (Benefit) | Net Periodic Pension Cost (Benefit) Fiscal Year (in thousands) 2017 2016 2015 Service cost $ 2,553 $ 461 $ 116 Interest cost 11,938 12,182 11,875 Expected return on plan assets (13,597 ) (13,822 ) (13,541 ) Recognized net actuarial loss 3,402 3,031 3,230 Amortization of prior service cost 28 28 35 Net periodic pension cost (benefit) $ 4,324 $ 1,880 $ 1,715 |
Significant Assumptions | Significant Assumptions Fiscal Year 2017 2016 2015 Projected benefit obligation at the measurement date: Discount rate - Primary Plan 3.80 % 4.44 % 4.72 % Discount rate - Bargaining Plan 3.90 % 4.49 % 4.72 % Weighted average rate of compensation increase N/A N/A N/A Net periodic pension cost for the fiscal year: Discount rate - Primary Plan and Bargaining Plan 4.44 % 4.72 % 4.32 % Weighted average expected long-term rate of return on plan assets 6.00 % 6.50 % 6.50 % Weighted average rate of compensation increase N/A N/A N/A |
Expected Weighted Average Long-Term Rate of Return | The Company’s pension plans target asset allocation for 2018, actual asset allocation at December 31, 2017 and January 1, 2017, and the expected weighted average long-term rate of return by asset category were as follows: Target Percentage of Plan Weighted Average Expected Allocation Assets at Fiscal Year-End Long-Term Rate of Return 2018 2017 2016 2017 U.S. large capitalization equity securities 40 % 41 % 41 % 3.0 % U.S. small/mid-capitalization equity securities 5 % 5 % 5 % 0.5 % International equity securities 15 % 15 % 15 % 1.2 % Debt securities 40 % 39 % 39 % 1.3 % Total 100 % 100 % 100 % 6.0 % |
Summary of Common/Collective Trust Fund Pension Plan Assets | The following table summarizes the Company’s common/collective trust fund pension plan assets. The underlying investments held in common/collective trust funds are actively managed equity securities and fixed income investment vehicles that are valued at the net asset value per share multiplied by the number of shares held as of the measurement date. (in thousands) December 31, 2017 January 1, 2017 Common/collective trust funds - equity securities $ 157,290 $ 139,735 Common/collective trust funds - fixed income 100,500 87,814 Total common/collective trust funds $ 257,790 $ 227,549 |
Reconciliation of Activity in Postretirement Benefit Plan | Reconciliation of Activity Fiscal Year (in thousands) 2017 2016 Benefit obligation at beginning of year $ 85,255 $ 70,361 Service cost 2,232 1,567 Interest cost 3,636 3,094 Acquisition of benefits 3,291 3,458 Plan participants’ contributions 752 662 Actuarial (gain)/loss 1,796 9,152 Benefits paid (2,994 ) (3,135 ) Medicare Part D subsidy reimbursement 37 96 Divestiture of benefits related to the Deep South and Somerset Exchange Business and the Florence and Laurel Distribution Business (17,340 ) - Benefit obligation at end of year $ 76,665 $ 85,255 |
Reconciliation of Plan Assets Fair Value in Postretirement Benefit Plan | Reconciliation of Plan Assets Fair Value Fiscal Year (in thousands) 2017 2016 Fair value of plan assets at beginning of year $ - $ - Employer contributions 2,205 2,377 Plan participants’ contributions 752 662 Benefits paid (2,994 ) (3,135 ) Medicare Part D subsidy reimbursement 37 96 Fair value of plan assets at end of year $ - $ - |
Funded Status in Postretirement Benefit Plan | Funded Status (in thousands) December 31, 2017 January 1, 2017 Current liabilities $ 3,678 $ 3,468 Noncurrent liabilities 72,987 81,787 Total liability - postretirement benefits $ 76,665 $ 85,255 |
Components of Net Periodic Postretirement Benefit Cost | Net Periodic Postretirement Benefit Cost Fiscal Year (in thousands) 2017 2016 2015 Service cost $ 2,232 $ 1,567 $ 1,118 Interest cost 3,636 3,094 2,878 Recognized net actuarial loss 2,942 2,186 3,164 Amortization of prior service cost (2,982 ) (3,360 ) (3,360 ) Net periodic postretirement benefit cost $ 5,828 $ 3,487 $ 3,800 |
Significant Assumptions | Significant Assumptions Fiscal Year 2017 2016 2015 Benefit obligation discount rate at measurement date 3.72 % 4.36 % 4.53 % Net periodic postretirement benefit cost discount rate for fiscal year 4.36 % 4.53 % 4.13 % Postretirement benefit expense - Pre-Medicare: Weighted average health care cost trend rate 6.94 % 6.20 % 7.50 % Trend rate graded down to ultimate rate 4.50 % 4.50 % 5.00 % Ultimate rate year 2025 2024 2021 Postretirement benefit expense - Post-Medicare: Weighted average health care cost trend rate 8.07 % 7.50 % 7.00 % Trend rate graded down to ultimate rate 4.50 % 4.50 % 5.00 % Ultimate rate year 2025 2024 2021 |
A 1% Increase or Decrease in Annual Health Care Cost | A 1% increase or decrease in the annual health care cost trend would have impacted the postretirement benefit obligation and service cost and interest cost of the Company’s postretirement benefit plan as follows: (in thousands) 1% Increase 1% Decrease Postretirement benefit obligation at December 31, 2017 $ 9,389 $ (8,323 ) Service cost and interest cost in 2017 668 (593 ) |
Reconciliation of Amounts in Accumulated Other Comprehensive Loss That Have Not Yet Been Recognized as Components of Net Periodic Benefit Cost | A reconciliation of the amounts in accumulated other comprehensive loss not yet recognized as components of net periodic benefit cost is as follows: (in thousands) January 1, 2017 Actuarial Gain (Loss) Reclassification Adjustments December 31, 2017 Pension Plans: Actuarial (loss) $ (119,644 ) $ (11,219 ) $ 3,402 $ (127,461 ) Prior service (cost) credit (101 ) - 28 (73 ) Postretirement Medical: Actuarial (loss) (40,502 ) (1,796 ) 2,942 (39,356 ) Prior service (cost) credit 6,122 - (2,982 ) 3,140 Recognized loss due to the divestiture of the Deep South and Somerset Exchange Business and the Florence and Laurel Distribution Business - - 8,257 8,257 Total within accumulated other comprehensive loss $ (154,125 ) $ (13,015 ) $ 11,647 $ (155,493 ) |
Amounts in Accumulated Other Comprehensive Loss Expected to be Recognized as Components of Net Periodic Pension Costs or Postretirement Benefits Costs in 2018 | The amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic cost during 2018 are as follows: (in thousands) Pension Plans Postretirement Medical Total Actuarial loss $ 3,681 $ 1,238 $ 4,919 Prior service cost (credit) 25 (1,734 ) (1,709 ) Total expected to be recognized during 2018 $ 3,706 $ (496 ) $ 3,210 |
Multi-Employer Plans | The Company’s participation in the Teamsters Plan is outlined in the table below. A red zone represents less than 80% funding and requires a financial improvement plan (“FIP”) or rehabilitation plan (“RP”). Fiscal Year (in thousands) 2017 2016 2015 Pension Protection Act Zone Status Red Red Red FIP or RP pending or implemented Yes Yes Yes Surcharge imposed Yes Yes Yes Contribution $ 800 $ 728 $ 692 |
Supplemental Savings Plan [Member] | |
Liability Under Executive Benefit Plans | The liability under this plan was as follows: (in thousands) December 31, 2017 January 1, 2017 Current liabilities $ 8,205 $ 7,339 Noncurrent liabilities 74,958 70,709 Total liability - Supplemental Savings Plan $ 83,163 $ 78,048 |
Long-Term Retention Plan [Member] | |
Liability Under Executive Benefit Plans | The liability under this plan was as follows: (in thousands) December 31, 2017 January 1, 2017 Current liabilities $ 3 $ 2 Noncurrent liabilities 2,563 1,256 Total liability - LTRP $ 2,566 $ 1,258 |
Retention Plan [Member] | |
Liability Under Executive Benefit Plans | The liability under this plan was as follows: (in thousands) December 31, 2017 January 1, 2017 Current liabilities $ 2,949 $ 3,359 Noncurrent liabilities 42,694 44,480 Total liability - Retention Plan $ 45,643 $ 47,839 |
Performance Plan [Member] | |
Liability Under Executive Benefit Plans | The liability under this plan was as follows: (in thousands) December 31, 2017 January 1, 2017 Current liabilities $ 5,561 $ 5,282 Noncurrent liabilities 4,527 5,651 Total liability - Performance Plan $ 10,088 $ 10,933 |
Pension Plans [Member] | |
Anticipated Future Pension Benefit Payments | Cash Flows (in thousands) Anticipated Future Pension Benefit Payments for the Fiscal Years 2018 $ 10,726 2019 11,350 2020 12,063 2021 12,815 2022 13,523 2023 – 2027 78,179 |
Postretirement Benefits [Member] | |
Anticipated Future Pension Benefit Payments | Cash Flows (in thousands) Anticipated Future Postretirement Benefit Payments Reflecting Expected Future Service 2018 $ 3,678 2019 3,834 2020 4,063 2021 4,253 2022 4,603 2023 – 2027 25,204 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
The Coca-Cola Company [Member] | |
Summary of Significant Transactions between Company and The Coca-Cola Company | The following table and the subsequent descriptions summarize the significant transactions between the Company and The Coca‑Cola Company: Fiscal Year (in thousands) 2017 2016 2015 Payments made by the Company to The Coca-Cola Company for: Concentrate, syrup, sweetener and other purchases $ 1,085,898 $ 669,783 $ 482,673 Customer marketing programs 139,542 116,537 70,754 Cold drink equipment parts 25,381 21,558 16,260 Glacéau distribution agreement consideration 15,598 - - Payments made by The Coca-Cola Company to the Company for: Conversion of bottling agreements $ 91,450 $ - $ - Marketing funding support payments 83,177 73,513 56,284 Fountain delivery and equipment repair fees 35,335 27,624 17,400 Legacy Facilities Credit (excluding portion related to Mobile, Alabama facility) 30,647 - - Portion of Legacy Facilities Credit related to Mobile, Alabama facility 12,364 - - Facilitating the distribution of certain brands and packages to other Coca-Cola bottlers 10,474 7,193 4,670 Cold drink equipment 8,400 - - Presence marketing funding support on the Company’s behalf 4,843 2,064 2,415 |
CCR [Member] | |
Summary of Purchases and Sales Arrangements Between Related Parties | The following table summarizes purchases and sales under these arrangements between the Company and CCR: Fiscal Year (in thousands) 2017 2016 2015 Purchases from CCR $ 114,891 $ 269,575 $ 229,954 Gross sales to CCR 76,718 72,568 30,500 Sales to CCR for transporting CCR's product 2,036 21,940 16,523 |
Schedule of Asset Purchase and Asset Exchange Transactions for the Acquisition and Exchange of Expansion Territories and Facilities | the Company and CCR recently concluded a series of System Transformation Transactions involving several asset purchase and asset exchange transactions for the acquisition and exchange of the following Expansion Territories and Expansion Facilities: Expansion Territories Definitive Agreement Date Acquisition / Exchange Date Johnson City and Morristown, Tennessee May 7, 2014 May 23, 2014 Knoxville, Tennessee August 28, 2014 October 24, 2014 Cleveland and Cookeville, Tennessee December 5, 2014 January 30, 2015 Louisville, Kentucky and Evansville, Indiana December 17, 2014 February 27, 2015 Paducah and Pikeville, Kentucky February 13, 2015 May 1, 2015 Lexington, Kentucky for Jackson, Tennessee Exchange October 17, 2014 May 1, 2015 Norfolk, Fredericksburg and Staunton, Virginia and Elizabeth City, North Carolina September 23, 2015 October 30, 2015 Easton and Salisbury, Maryland and Richmond and Yorktown, Virginia September 23, 2015 January 29, 2016 Alexandria, Virginia and Capitol Heights and La Plata, Maryland September 23, 2015 April 1, 2016 Baltimore, Hagerstown and Cumberland, Maryland September 23, 2015 April 29, 2016 Cincinnati, Dayton, Lima and Portsmouth, Ohio and Louisa, Kentucky September 1, 2016 1 October 28, 2016 Anderson, Fort Wayne, Lafayette, South Bend and Terre Haute, Indiana September 1, 2016 January 27, 2017 Indianapolis and Bloomington, Indiana and Columbus and Mansfield, Ohio September 1, 2016 March 31, 2017 Akron, Elyria, Toledo, Willoughby and Youngstown, Ohio April 13, 2017 April 28, 2017 Memphis, Tennessee September 29, 2017 October 2, 2017 Little Rock and West Memphis, Arkansas for Leroy, Mobile and Robertsdale, Alabama, Panama City, Florida, Bainbridge, Columbus and Sylvester, Georgia, Ocean Springs, Mississippi and Somerset, Kentucky (as part of the CCR Exchange Transaction) September 29, 2017 October 2, 2017 Expansion Facilities Definitive Agreement Date Acquisition / Exchange Date Annapolis, Maryland Make-Ready Center October 30, 2015 October 30, 2015 Sandston, Virginia October 30, 2015 January 29, 2016 Silver Spring and Baltimore, Maryland October 30, 2015 April 29, 2016 Cincinnati, Ohio September 1, 2016 October 28, 2016 Indianapolis and Portland, Indiana September 1, 2016 March 31, 2017 Twinsburg, Ohio April 13, 2017 April 28, 2017 Memphis, Tennessee and West Memphis, Arkansas for Mobile, Alabama (as part of the CCR Exchange Transaction) September 29, 2017 October 2, 2017 (1) As amended by Amendment No. 1, dated January 27, 2017. |
Beacon [Member] | |
Minimum Rentals and Contingent Rental Payments | The minimum rentals and contingent rental payments related to this lease were as follows: Fiscal Year (in thousands) 2017 2016 2015 Minimum rentals $ 3,509 $ 3,526 $ 3,540 Contingent rentals 877 767 682 Total rental payments $ 4,386 $ 4,293 $ 4,222 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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. See Note 1 to the consolidated financial statements for additional information related to net income per share. Fiscal Year (in thousands, except per share data) 2017 2016 2015 Numerator for basic and diluted net income per Common Stock and Class B Common Stock share: Net income attributable to Coca-Cola Bottling Co. Consolidated $ 96,535 $ 50,146 $ 59,002 Less dividends: Common Stock 7,141 7,141 7,141 Class B Common Stock 2,187 2,166 2,146 Total undistributed earnings $ 87,207 $ 40,839 $ 49,715 Common Stock undistributed earnings – basic $ 66,754 $ 31,328 $ 38,223 Class B Common Stock undistributed earnings – basic 20,453 9,511 11,492 Total undistributed earnings $ 87,207 $ 40,839 $ 49,715 Common Stock undistributed earnings – diluted $ 66,469 $ 31,194 $ 38,059 Class B Common Stock undistributed earnings – diluted 20,738 9,645 11,656 Total undistributed earnings – diluted $ 87,207 $ 40,839 $ 49,715 Numerator for basic net income per Common Stock share: Dividends on Common Stock $ 7,141 $ 7,141 $ 7,141 Common Stock undistributed earnings – basic 66,754 31,328 38,223 Numerator for basic net income per Common Stock share $ 73,895 $ 38,469 $ 45,364 Numerator for basic net income per Class B Common Stock share: Dividends on Class B Common Stock $ 2,187 $ 2,166 $ 2,146 Class B Common Stock undistributed earnings – basic 20,453 9,511 11,492 Numerator for basic net income per Class B Common Stock share $ 22,640 $ 11,677 $ 13,638 Fiscal Year (in thousands, except per share data) 2017 2016 2015 Numerator for diluted net income per Common Stock share: Dividends on Common Stock $ 7,141 $ 7,141 $ 7,141 Dividends on Class B Common Stock assumed converted to Common Stock 2,187 2,166 2,146 Common Stock undistributed earnings – diluted 87,207 40,839 49,715 Numerator for diluted net income per Common Stock share $ 96,535 $ 50,146 $ 59,002 Numerator for diluted net income per Class B Common Stock share: Dividends on Class B Common Stock $ 2,187 $ 2,166 $ 2,146 Class B Common Stock undistributed earnings – diluted 20,738 9,645 11,656 Numerator for diluted net income per Class B Common Stock share $ 22,925 $ 11,811 $ 13,802 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 Class B Common Stock weighted average shares outstanding – basic 2,188 2,168 2,147 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) 9,369 9,349 9,328 Class B Common Stock weighted average shares outstanding – diluted 2,228 2,208 2,187 Basic net income per share: Common Stock $ 10.35 $ 5.39 $ 6.35 Class B Common Stock $ 10.35 $ 5.39 $ 6.35 Diluted net income per share: Common Stock $ 10.30 $ 5.36 $ 6.33 Class B Common Stock $ 10.29 $ 5.35 $ 6.31 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) Denominator for diluted net income per share for Common Stock and Class B Common Stock includes the dilutive effect of shares relative to the Performance Unit Award Agreement. (4) The Company does not have anti-dilutive shares. |
Risks and Uncertainties (Tables
Risks and Uncertainties (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Risks And Uncertainties [Abstract] | |
Summary of Percentage of Total Bottle/Can Sales Volume and Percentage Total Net Sales to Its Largest Customers | The following table summarizes the percentage of the Company’s total bottle/can sales volume to its largest customers, as well as the percentage of the Company’s total net sales, which are included in the Nonalcoholic Beverages operating segment, that such volume represents. No other customer represented greater than 10% of the Company’s total net sales for any years presented. Fiscal Year 2017 2016 2015 Approximate percent of the Company's total bottle/can sales volume Wal-Mart Stores, Inc. 19 % 20 % 22 % The Kroger Company 10 % 6 % 6 % Food Lion, LLC 6 % 8 % 7 % Total approximate percent of the Company's total bottle/can sales volume 35 % 34 % 35 % Approximate percent of the Company's total net sales Wal-Mart Stores, Inc. 13 % 14 % 15 % The Kroger Company 7 % 5 % 5 % Food Lion, LLC 4 % 5 % 5 % Total approximate percent of the Company's total net sales 24 % 24 % 25 % |
Supplemental Disclosures of C62
Supplemental Disclosures of Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 were as follows: Fiscal Year (in thousands) 2017 2016 2015 Accounts receivable, trade, net $ (121,203 ) $ (83,204 ) $ (62,542 ) Accounts receivable from The Coca-Cola Company 3,272 (31,231 ) (5,258 ) Accounts receivable, other (9,190 ) (5,723 ) (9,543 ) Inventories 2,527 (8,301 ) (13,849 ) Prepaid expenses and other current assets (22,870 ) 2,277 (6,264 ) Accounts payable, trade 73,603 32,186 21,728 Accounts payable to The Coca-Cola Company 33,757 39,842 26,769 Other accrued liabilities 31,525 6,474 24,784 Accrued compensation 7,351 7,613 6,087 Accrued interest payable 1,487 158 (174 ) Change in current assets less current liabilities (exclusive of acquisitions) $ 259 $ (39,909 ) $ (18,262 ) |
Cash Payments (Refunds) During the Period for Interest and Income Taxes | The Company had the following cash payments (refunds) during the period for interest and income taxes: Fiscal Year (in thousands) 2017 2016 2015 Interest $ 39,609 $ 34,764 $ 27,391 Income taxes 30,965 (7,111 ) 31,782 |
Significant Noncash Investing and Financing Activities | The Company had the following significant noncash investing and financing activities: Fiscal Year (in thousands) 2017 2016 2015 Estimated fair value related to the divestiture of the Deep South and Somerset Exchange Business and the Florence and Laurel Distribution Business $ 151,434 $ - $ - Additions to property, plant and equipment accrued and recorded in accounts payable, trade 22,329 15,704 14,006 Gain on acquisition of Southeastern Container preferred shares in CCR redistribution 6,012 - - Accounts receivable from The Coca-Cola Company for adjustments to the cash purchase price for the April 2017 Transactions 4,707 - - Issuance of Class B Common Stock in connection with stock award 3,669 3,726 2,225 Capital lease obligations incurred 2,233 - 3,361 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Summary of Financial Information by Segment | The Company’s segment results are as follows: Fiscal Year (in thousands) 2017 2016 2015 Net Sales: Nonalcoholic Beverages $ 4,243,007 $ 3,060,937 $ 2,245,836 All Other 301,801 234,732 160,191 Eliminations (1) (221,140 ) (139,241 ) (99,569 ) Consolidated net sales $ 4,323,668 $ 3,156,428 $ 2,306,458 Income from operations: Nonalcoholic Beverages $ 84,775 $ 123,230 $ 92,921 All Other 11,404 4,629 5,223 Consolidated income from operations $ 96,179 $ 127,859 $ 98,144 Depreciation and Amortization: Nonalcoholic Beverages $ 160,524 $ 109,716 $ 76,127 All Other 8,317 6,907 4,769 Consolidated depreciation and amortization $ 168,841 $ 116,623 $ 80,896 (in thousands) December 31, 2017 January 1, 2017 Total Assets: Nonalcoholic Beverages $ 2,958,521 $ 2,349,284 All Other 119,894 105,785 Eliminations (1) (5,455 ) (5,585 ) Consolidated total assets $ 3,072,960 $ 2,449,484 (1) The entire net sales elimination for each period presented represents net sales from All Other 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. Asset eliminations relate to eliminations of intercompany receivables and payables between Nonalcoholic Beverages and All Other. |
Net Sales by Product Category | Net sales by product category were as follows: Fiscal Year (in thousands) 2017 2016 2015 Bottle/can sales: Sparkling beverages (carbonated) $ 2,285,621 $ 1,764,558 $ 1,323,712 Still beverages (noncarbonated, including energy products) 1,325,969 892,125 577,872 Total bottle/can sales 3,611,590 2,656,683 1,901,584 Other sales: Sales to other Coca-Cola bottlers 383,065 238,182 178,777 Post-mix and other 329,013 261,563 226,097 Total other sales 712,078 499,745 404,874 Total net sales $ 4,323,668 $ 3,156,428 $ 2,306,458 |
Quarterly Financial Data (Una64
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | The unaudited quarterly financial data for the fiscal years ended December 31, 2017 and January 1, 2017 is included in the tables shown below. Excluding the impact of System Transformation Transactions completed during the fiscal year, sales volume has historically been the highest in the second and third quarter of each fiscal year. Additional meaningful financial information is included in the table following each presented period. Quarter Ended (in thousands, except per share data) April 2, 2017 July 2, 2017 October 1, 2017 December 31, 2017 Net sales $ 865,702 $ 1,169,291 $ 1,162,526 $ 1,126,149 Gross profit 332,021 415,178 410,324 383,424 Net income (loss) attributable to Coca-Cola Bottling Co. Consolidated (5,051 ) 6,348 17,316 77,922 Basic net income (loss) per share based on net income attributable to Coca-Cola Bottling Co. Consolidated: Common Stock $ (0.54 ) $ 0.68 $ 1.86 $ 8.35 Class B Common Stock $ (0.54 ) $ 0.68 $ 1.86 $ 8.35 Diluted net income (loss) per share based on net income attributable to Coca-Cola Bottling Co. Consolidated: Common Stock $ (0.54 ) $ 0.68 $ 1.85 $ 8.31 Class B Common Stock $ (0.54 ) $ 0.67 $ 1.84 $ 8.32 Additional Information: Quarter Ended (in thousands, except per share data) April 2, 2017 July 2, 2017 October 1, 2017 December 31, 2017 System Transformation Transactions acquisitions impact: Net sales impact $ 264,906 $ 472,649 $ 478,272 $ 536,070 Pre-tax income (loss) impact 4,450 15,320 10,329 (415 ) Net income (loss) impact 2,746 9,452 6,373 (179 ) Per basic common share impact $ 0.29 $ 1.02 $ 0.68 $ (0.02 ) System Transformation Transactions settlement impact: Pre-tax total (income) expense $ - $ 9,442 $ - $ (2,446 ) (Income) expense net of tax - 5,826 - (1,054 ) (Income) expense per basic common share $ - $ 0.61 $ - $ (0.11 ) Expenses related to System Transformation Transactions: Pre-tax total expense $ 7,652 $ 11,574 $ 13,148 $ 17,171 Expense net of tax 4,721 7,141 8,112 7,401 Expense per basic common share $ 0.50 $ 0.77 $ 0.86 $ 0.79 Gain on exchange of franchise territories: Pre-tax income impact $ - $ - $ - $ 529 Net income impact - - - 228 Per basic common share impact $ - $ - $ - $ 0.02 Portion of Legacy Facilities Credit related to Mobile, Alabama facility impact: Pre-tax income impact $ - $ - $ - $ 12,364 Net income impact - - - 5,329 Per basic common share impact $ - $ - $ - $ 0.57 Acquisition of Southeastern Container preferred shares from CCR impact: Pre-tax income impact $ - $ - $ - $ 6,012 Net income impact - - - 2,591 Per basic common share impact $ - $ - $ - $ 0.28 Fair value income/(expense) for acquisition related contingent consideration: Pre-tax total income/(expense) $ (12,246 ) $ (16,119 ) $ 5,225 $ 19,914 Income/(expense) net of tax (7,556 ) (9,945 ) 3,224 8,583 Income/(expense) per basic common share $ (0.81 ) $ (1.07 ) $ 0.35 $ 0.92 Amortization of converted distribution rights: Pre-tax total expense $ - $ 2,760 $ 2,760 $ 2,330 Expense net of tax - 1,703 1,703 1,004 Expense per basic common share $ - $ 0.18 $ 0.18 $ 0.11 Mark-to-market income/(expense) related to commodity hedging program: Pre-tax total income/(expense) $ 327 $ (1,187 ) $ 3,401 $ 589 Income/(expense) net of tax 202 (732 ) 2,098 254 Income/(expense) per basic common share $ 0.02 $ (0.08 ) $ 0.22 $ 0.03 Tax Act impact: Income net of tax $ - $ - $ - $ 66,595 Income per basic common share $ - $ - $ - $ 7.14 Quarter Ended (in thousands, except per share data) April 3, 2016 July 3, 2016 October 2, 2016 January 1, 2017 Net sales $ 625,456 $ 840,384 $ 849,028 $ 841,560 Gross profit 243,898 319,707 327,190 324,927 Net income (loss) attributable to Coca-Cola Bottling Co. Consolidated (10,041 ) 15,652 23,142 21,393 Basic net income (loss) per share based on net income attributable to Coca-Cola Bottling Co. Consolidated: Common Stock $ (1.08 ) $ 1.68 $ 2.48 $ 2.31 Class B Common Stock $ (1.08 ) $ 1.68 $ 2.48 $ 2.31 Diluted net income (loss) per share based on net income attributable to Coca-Cola Bottling Co. Consolidated: Common Stock $ (1.08 ) $ 1.67 $ 2.47 $ 2.30 Class B Common Stock $ (1.08 ) $ 1.67 $ 2.47 $ 2.29 Additional Information: Quarter Ended (in thousands, except per share data) April 3, 2016 July 3, 2016 October 2, 2016 January 1, 2017 System Transformation Transactions acquisitions impact: Net sales impact $ 35,311 $ 162,819 $ 174,420 $ 219,780 Pre-tax income impact 1,206 13,502 2,512 5,153 Net income impact 742 8,304 1,545 3,169 Per basic common share impact $ 0.08 $ 0.89 $ 0.17 $ 0.34 System Transformation Transactions divestitures impact: Net sales impact $ - $ - $ - $ 68,929 Pre-tax income impact - - - 11,538 Net income impact - - - 7,096 Per basic common share impact $ - $ - $ - $ 0.76 Expenses related to System Transformation Transactions: Pre-tax total expense $ 6,423 $ 7,005 $ 9,780 $ 9,066 Expense net of tax 3,950 4,308 6,015 5,576 Expense per basic common share $ 0.43 $ 0.46 $ 0.66 $ 0.59 Reduction of gain related to exchange of franchise territories: Pre-tax total adjustment $ - $ 692 $ - $ - Adjustment net of tax - 426 - - Adjustment per basic common share $ - $ 0.05 $ - $ - Fair value income/(expense) for acquisition related contingent consideration: Pre-tax total income/(expense) $ (17,151 ) $ (16,274 ) $ 7,365 $ 27,970 Income/(expense) net of tax (10,548 ) (10,009 ) 4,530 17,202 Income/(expense) per basic common share $ (1.14 ) $ (1.06 ) $ 0.49 $ 1.85 Mark-to-market income/(expense) related to commodity hedging program: Pre-tax total income/(expense) $ 1,040 $ 2,770 $ 388 $ 530 Income/(expense) net of tax 640 1,704 239 326 Income/(expense) per basic common share $ 0.07 $ 0.18 $ 0.03 $ 0.04 Impact of changes in product supply governance: Pre-tax total income $ 2,213 $ 1,105 $ 1,614 $ 2,591 Income net of tax 1,361 680 993 1,593 Income per basic common share $ 0.15 $ 0.07 $ 0.11 $ 0.17 Expense related to special charitable contribution: Pre-tax total expense $ 4,000 $ - $ - $ - Expense net of tax 2,460 - - - Expense per basic common share $ 0.26 $ - $ - $ - |
Description of Business and S65
Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | Apr. 30, 2008shares | Apr. 02, 2017 | Dec. 30, 2018USD ($) | Dec. 31, 2017USD ($)SegmentBenefit_PlanVoteshares | Jan. 01, 2017USD ($)shares | Jan. 03, 2016USD ($)shares |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Bottle and can volume to retail customers | 93.00% | |||||
Number of operating segments | Segment | 4 | |||||
Number of additional operating segments that do not meet quantitative thresholds for separate reporting | Segment | 3 | |||||
Period of collection of trade account receivable | 30 days | |||||
Amortization expenses of internal-use software | $ 11,900 | $ 10,900 | $ 9,300 | |||
Percentage of maximum tax benefit | 50.00% | |||||
Cost of marketing programs and sales incentives | $ 137,300 | $ 117,000 | $ 71,400 | |||
Number of votes per share | Vote | 1 | |||||
Percentage control of total voting power | 86.00% | |||||
Class B Common Stock is convertible into Common Stock Ratio | one-for-one per share | |||||
Anti-dilutive shares | shares | 0 | 0 | 0 | |||
ASU 2017-07 [Member] | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Reclassification of service cost from income from operations to other income (expense), net | $ 5,400 | $ 3,300 | ||||
Class B Common Stock [Member] | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Performance units authorized | shares | 400,000 | |||||
Common B stock per performance unit | shares | 1 | |||||
Term of performance unit award agreement | 10 years | |||||
Maximum overall goal achievement factor | 100.00% | |||||
Annual performance units granted | shares | 40,000 | |||||
Number of votes per share | Vote | 20 | |||||
Selling, Delivery and Administrative Expenses [Member] | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Shipping and handling costs | $ 550,900 | 395,400 | $ 277,900 | |||
Nonalcoholic Beverages [Member] | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Percentage of service revenue | 1.00% | |||||
Delivery fees in net sales | $ 5,700 | 6,000 | 6,300 | |||
All Other [Member] | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of operating segments | Segment | 3 | |||||
Percentage of third party freight revenue | 2.00% | |||||
Pension Plans [Member] | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of company-sponsored pension plans | Benefit_Plan | 2 | |||||
Expected service cost | $ 2,553 | $ 461 | $ 116 | |||
Non-service Cost Components of Net Periodic Benefit Cost [Member] | ASU 2017-07 [Member] | Scenario Forecast [Member] | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Expected service cost | $ 7,700 | |||||
Non-service Cost Components of Other Benefit Plan Charges [Member] | ASU 2017-07 [Member] | Scenario Forecast [Member] | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Expected service cost | $ 2,700 | |||||
Distribution Rights [Member] | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful life | 40 years | |||||
Minimum [Member] | Distribution Rights [Member] | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful life | 20 years | |||||
Minimum [Member] | Customer Relationships [Member] | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful life | 12 years | |||||
Maximum [Member] | Distribution Rights [Member] | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful life | 40 years | |||||
Maximum [Member] | Customer Relationships [Member] | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful life | 20 years |
Piedmont Coca-Cola Bottling P66
Piedmont Coca-Cola Bottling Partnership - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Minority Interest [Line Items] | |||
Noncontrolling interest income | $ 6,312,000 | $ 6,517,000 | $ 6,042,000 |
Noncontrolling interest | $ 92,205,000 | $ 85,893,000 | |
Piedmont Coca-Cola Bottling Partnership [Member] | |||
Minority Interest [Line Items] | |||
Minority interest | 22.70% | ||
Piedmont Coca-Cola Bottling Partnership [Member] | Financing Agreement Provided from Company to Piedmont [Member] | |||
Minority Interest [Line Items] | |||
Finance under financial agreement | $ 100,000,000 | ||
Financial agreement expiration date | Dec. 31, 2019 | ||
Automatic renewal period of financial agreement | 1 year | ||
Period of prior written notice for cancellation | 10 days | ||
Subsidiary's intercompany interest rate over the Company's average rate | 0.50% | ||
Amounts outstanding under financing agreement with subsidiary | $ 0 | ||
Piedmont Coca-Cola Bottling Partnership [Member] | Financing Agreement Provided form Piedmont to Company [Member] | |||
Minority Interest [Line Items] | |||
Financial agreement expiration date | Dec. 31, 2022 | ||
Automatic renewal period of financial agreement | 1 year | ||
Financing under agreement | $ 200,000,000 | ||
Revolving loan agreement maturity period | 30 days | ||
Interest rate percentage over revolving loan agreement | 1.47% | ||
Amount outstanding under financing agreement from subsidiary | $ 111,800,000 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Additional Information (Detail) | Oct. 02, 2017USD ($) | Apr. 28, 2017USD ($) | Jan. 27, 2017USD ($) | Oct. 28, 2016USD ($) | Apr. 29, 2016USD ($) | Apr. 01, 2016USD ($) | Jan. 29, 2016USD ($) | Dec. 31, 2017USD ($) | Oct. 31, 2017USD ($) | Apr. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Apr. 02, 2017 | Dec. 31, 2017USD ($)Facility | Jan. 01, 2017USD ($) | Jan. 03, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 28, 2014USD ($) | Dec. 26, 2017USD ($) | Aug. 24, 2015USD ($) |
Business Acquisition [Line Items] | ||||||||||||||||||||
Gain (loss) on exchange transactions | $ 12,893,000 | $ (692,000) | $ 8,807,000 | |||||||||||||||||
Amortization period of Legacy facilities credit as reduction to cost of sales | 40 years | |||||||||||||||||||
Bargain purchase gain, net of tax of $1,265 | 2,011,000 | |||||||||||||||||||
Transaction related expenses incurred | $ 6,800,000 | $ 6,100,000 | 5,800,000 | |||||||||||||||||
Gain on sale of business | 22,651,000 | |||||||||||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | BYB Brands Inc [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Cash purchase price on sale of brands | $ 26,400,000 | |||||||||||||||||||
Gain on sale of business | $ 22,700,000 | |||||||||||||||||||
Distribution Agreements [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Estimated useful life | 40 years | |||||||||||||||||||
Manufacturing Facilities Letter Agreement | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Aggregate valuation adjustment discount | $ 5,400,000 | $ 22,900,000 | ||||||||||||||||||
Legacy Facilities Credit [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Amount of compensation receivable | $ 43,000,000 | |||||||||||||||||||
Amount of compensation paid | $ 43,000,000 | |||||||||||||||||||
CCR [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Deferred liability recorded | 30,600,000 | $ 30,600,000 | $ 30,600,000 | |||||||||||||||||
Amortization period of Legacy facilities credit as reduction to cost of sales | 40 years | |||||||||||||||||||
CCR [Member] | Manufacturing Facilities Letter Agreement | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Cash purchase | 33,100,000 | |||||||||||||||||||
Aggregate valuation adjustment discount | $ 4,800,000 | |||||||||||||||||||
Number of additional expansion facility applicable for discount | Facility | 2 | |||||||||||||||||||
Remaining outstanding amount | 0 | 0 | $ 0 | |||||||||||||||||
CCR [Member] | Legacy Facilities Credit [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Deferred liability recorded | $ 30,600,000 | 30,600,000 | $ 30,600,000 | |||||||||||||||||
Amortization period of Legacy facilities credit as reduction to cost of sales | 40 years | |||||||||||||||||||
C C R Exchange Transaction And United Exchange Transaction | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Gain (loss) on exchange transactions | $ 500,000 | |||||||||||||||||||
Anderson, Fort Wayne, Lafayette, South Bend and Terre Haute, Indiana Expansion Territories Acquisitions [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Goodwill recognized, expected to be deductible for tax purposes | $ 0 | |||||||||||||||||||
Anderson, Fort Wayne, Lafayette, South Bend and Terre Haute, Indiana Expansion Territories Acquisitions [Member] | CCR [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Cash purchase | $ 32,100,000 | |||||||||||||||||||
Increase (decrease) cash purchase price | $ 500,000 | |||||||||||||||||||
Bloomington and Indianapolis, Indiana and Columbus and Mansfield, Ohio Expansion Territories Acquisitions and Indianapolis and Portland, Indiana Expansion Facilities Acquisitions [Member] | CCR [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Cash purchase | 104,600,000 | |||||||||||||||||||
Increase (decrease) cash purchase price | (4,100,000) | |||||||||||||||||||
Akron, Elyria, Toledo, Willoughby and Youngstown, Ohio Expansion Territories Acquisitions and Twinsburg, Ohio Expansion Facility Acquisition [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Goodwill recognized, expected to be deductible for tax purposes | $ 11,600,000 | |||||||||||||||||||
Akron, Elyria, Toledo, Willoughby and Youngstown, Ohio Expansion Territories Acquisitions and Twinsburg, Ohio Expansion Facility Acquisition [Member] | CCR [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Cash purchase | $ 87,900,000 | |||||||||||||||||||
Increase (decrease) cash purchase price | $ (4,700,000) | |||||||||||||||||||
October 2017 CCR Exchange Transaction | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Effective date of business acquisition | Oct. 2, 2017 | |||||||||||||||||||
Arkansas Expansion Territory and Memphis and West Memphis Expansion Facilities Acquisition [Member] | CCR [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Cash purchase | $ 15,900,000 | |||||||||||||||||||
Aggregate valuation adjustment discount | 4,800,000 | |||||||||||||||||||
Memphis Expansion Territory [Member] | CCR [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Cash purchase | $ 39,600,000 | |||||||||||||||||||
Effective date of business acquisition | Oct. 2, 2017 | |||||||||||||||||||
Acquisition of Spartanburg and Bluffton Expansion Territory in exchange for the Company’s Florence and Laurel Territory and Piedmont's Northeastern Georgia Territory [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Cash purchase | $ 3,400,000 | |||||||||||||||||||
Effective date of business acquisition | Oct. 2, 2017 | |||||||||||||||||||
Memphis Tennessee For Leroy Mobile And Robertsdale Alabama Panama City Florida Bainbridge Columbus And Sylvester Georgia Ocean Springs Mississippi And Somerset Kentucky Exchange Acquisition | CCR [Member] | Legacy Facilities Credit [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Gain (loss) on exchange transactions | $ 12,400,000 | |||||||||||||||||||
Coca Cola Refreshments Exchange Transactions | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Goodwill recognized, expected to be deductible for tax purposes | $ 6,400,000 | |||||||||||||||||||
Memphis Transaction [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Goodwill recognized, expected to be deductible for tax purposes | 6,600,000 | |||||||||||||||||||
Memphis Transaction [Member] | CCR [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Effective date of business acquisition | Oct. 2, 2017 | |||||||||||||||||||
Bloomington and Indianapolis, Indiana and Columbus and Mansfield, Ohio Expansion Territories Acquisitions and Indianapolis and Portland, Indiana Expansion Facilities Acquisitions [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Goodwill recognized, expected to be deductible for tax purposes | $ 0 | |||||||||||||||||||
United Exchange Transaction Acquisitions | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Goodwill recognized, expected to be deductible for tax purposes | $ 2,700,000 | |||||||||||||||||||
2017 Acquisition [Member] | Distribution Agreements [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Estimated useful life | 40 years | |||||||||||||||||||
2017 Acquisition [Member] | Customer Lists [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Estimated useful life | 12 years | |||||||||||||||||||
Easton and Salisbury, Maryland and Richmond and Yorktown, Virginia Expansion Territories Acquisitions and Sandston, Virginia Expansion Facility Acquisition [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Cash purchase | $ 75,900,000 | |||||||||||||||||||
Effective date of business acquisition | Jan. 29, 2016 | |||||||||||||||||||
Goodwill recognized, expected to be deductible for tax purposes | 14,900,000 | |||||||||||||||||||
Cash purchase price, settled beyond one year from transaction closing date | $ 10,200,000 | |||||||||||||||||||
Alexandria, Virginia and Capitol Heights and La Plata, Maryland Expansion Territories Acquisitions [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Cash purchase | $ 34,800,000 | |||||||||||||||||||
Effective date of business acquisition | Apr. 1, 2016 | |||||||||||||||||||
Goodwill recognized, expected to be deductible for tax purposes | 0 | |||||||||||||||||||
Cash purchase price, settled beyond one year from transaction closing date | $ 800,000 | |||||||||||||||||||
Baltimore, Hagerstown and Cumberland, Maryland Expansion Territories Acquisitions and Silver Spring and Baltimore, Maryland Expansion Facilities Acquisitions [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Cash purchase | $ 68,500,000 | |||||||||||||||||||
Effective date of business acquisition | Apr. 29, 2016 | |||||||||||||||||||
Goodwill recognized, expected to be deductible for tax purposes | 0 | |||||||||||||||||||
Cash purchase price, settled beyond one year from transaction closing date | $ 500,000 | |||||||||||||||||||
Cincinnati, Dayton, Lima and Portsmouth, Ohio and Louisa, Kentucky Expansion Territories Acquisitions and Cincinnati, Ohio Expansion Facility Acquisition [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Cash purchase | $ 99,700,000 | |||||||||||||||||||
Effective date of business acquisition | Oct. 28, 2016 | |||||||||||||||||||
Goodwill recognized, expected to be deductible for tax purposes | $ 15,800,000 | |||||||||||||||||||
Cash purchase price increased from post-closing adjustments | $ 1,500,000 | |||||||||||||||||||
2015 Expansion Territories and 2015 Asset Exchange Center [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Cash purchase | 85,600,000 | |||||||||||||||||||
2015 Asset Exchange [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Gain (loss) on exchange transactions | 8,100,000 | |||||||||||||||||||
Bargain purchase gain, net of tax of $1,265 | 2,000,000 | |||||||||||||||||||
Deferred tax liability | $ 1,300,000 | |||||||||||||||||||
2014 Expansion Territories [Member] | CCR [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Cash purchase | $ 43,100,000 |
Acquisitions and Divestitures68
Acquisitions and Divestitures - Summary of Fair Value of Acquired Assets and Assumed Liabilities as of Acquisition Date (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Oct. 02, 2017 | Apr. 28, 2017 | Mar. 31, 2017 | Jan. 27, 2017 | Jan. 01, 2017 | Oct. 28, 2016 | Apr. 29, 2016 | Apr. 01, 2016 | Jan. 29, 2016 | Jan. 03, 2016 |
Business Acquisition [Line Items] | |||||||||||
Goodwill | $ 169,316 | $ 144,586 | $ 117,954 | ||||||||
Current liabilities (acquisition related contingent consideration) | 23,339 | 15,782 | |||||||||
Other liabilities (acquisition related contingent consideration) | 357,952 | 237,655 | |||||||||
Anderson, Fort Wayne, Lafayette, South Bend and Terre Haute, Indiana Expansion Territories Acquisitions [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash | $ 107 | ||||||||||
Inventories | 5,953 | ||||||||||
Prepaid expenses and other current assets | 1,155 | ||||||||||
Accounts receivable from The Coca-Cola Company | 1,042 | ||||||||||
Property, plant and equipment | 25,708 | ||||||||||
Other assets (including deferred taxes) | 1,158 | ||||||||||
Goodwill | 1,544 | ||||||||||
Total acquired assets | 60,167 | ||||||||||
Current liabilities (acquisition related contingent consideration) | 1,350 | ||||||||||
Other current liabilities | 324 | ||||||||||
Other liabilities (acquisition related contingent consideration) | 26,377 | ||||||||||
Other liabilities | 43 | ||||||||||
Total assumed liabilities | 28,094 | ||||||||||
Anderson, Fort Wayne, Lafayette, South Bend and Terre Haute, Indiana Expansion Territories Acquisitions [Member] | Distribution Agreements [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Other identifiable intangible assets | 22,000 | ||||||||||
Anderson, Fort Wayne, Lafayette, South Bend and Terre Haute, Indiana Expansion Territories Acquisitions [Member] | Customer Lists [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Other identifiable intangible assets | $ 1,500 | ||||||||||
Bloomington and Indianapolis, Indiana and Columbus and Mansfield, Ohio Expansion Territories Acquisitions and Indianapolis and Portland, Indiana Expansion Facilities Acquisitions [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash | $ 211 | ||||||||||
Inventories | 20,952 | ||||||||||
Prepaid expenses and other current assets | 5,117 | ||||||||||
Accounts receivable from The Coca-Cola Company | 1,807 | ||||||||||
Property, plant and equipment | 81,638 | ||||||||||
Other assets (including deferred taxes) | 3,227 | ||||||||||
Goodwill | 2,527 | ||||||||||
Total acquired assets | 163,979 | ||||||||||
Current liabilities (acquisition related contingent consideration) | 2,958 | ||||||||||
Other current liabilities | 3,760 | ||||||||||
Other liabilities (acquisition related contingent consideration) | 49,739 | ||||||||||
Other liabilities | 2,953 | ||||||||||
Total assumed liabilities | 59,410 | ||||||||||
Bloomington and Indianapolis, Indiana and Columbus and Mansfield, Ohio Expansion Territories Acquisitions and Indianapolis and Portland, Indiana Expansion Facilities Acquisitions [Member] | Distribution Agreements [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Other identifiable intangible assets | 46,750 | ||||||||||
Bloomington and Indianapolis, Indiana and Columbus and Mansfield, Ohio Expansion Territories Acquisitions and Indianapolis and Portland, Indiana Expansion Facilities Acquisitions [Member] | Customer Lists [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Other identifiable intangible assets | $ 1,750 | ||||||||||
Akron, Elyria, Toledo, Willoughby and Youngstown, Ohio Expansion Territories Acquisitions and Twinsburg, Ohio Expansion Facility Acquisition [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash | $ 103 | ||||||||||
Inventories | 14,554 | ||||||||||
Prepaid expenses and other current assets | 4,068 | ||||||||||
Accounts receivable from The Coca-Cola Company | 2,552 | ||||||||||
Property, plant and equipment | 52,263 | ||||||||||
Other assets (including deferred taxes) | 4,369 | ||||||||||
Goodwill | 17,804 | ||||||||||
Total acquired assets | 116,213 | ||||||||||
Current liabilities (acquisition related contingent consideration) | 1,546 | ||||||||||
Other current liabilities | 2,860 | ||||||||||
Other liabilities (acquisition related contingent consideration) | 26,604 | ||||||||||
Other liabilities | 2,005 | ||||||||||
Total assumed liabilities | 33,015 | ||||||||||
Akron, Elyria, Toledo, Willoughby and Youngstown, Ohio Expansion Territories Acquisitions and Twinsburg, Ohio Expansion Facility Acquisition [Member] | Distribution Agreements [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Other identifiable intangible assets | 19,500 | ||||||||||
Akron, Elyria, Toledo, Willoughby and Youngstown, Ohio Expansion Territories Acquisitions and Twinsburg, Ohio Expansion Facility Acquisition [Member] | Customer Lists [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Other identifiable intangible assets | $ 1,000 | ||||||||||
October 2017 Transactions Acquisitions [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash | $ 191 | ||||||||||
Inventories | 14,850 | ||||||||||
Prepaid expenses and other current assets | 4,754 | ||||||||||
Accounts receivable from The Coca-Cola Company | 2,391 | ||||||||||
Property, plant and equipment | 70,645 | ||||||||||
Other assets (including deferred taxes) | 889 | ||||||||||
Goodwill | 13,992 | ||||||||||
Total acquired assets | 237,412 | ||||||||||
Current liabilities (acquisition related contingent consideration) | 1,458 | ||||||||||
Other current liabilities | 6,492 | ||||||||||
Other liabilities (acquisition related contingent consideration) | 18,848 | ||||||||||
Other liabilities | 95 | ||||||||||
Total assumed liabilities | 26,893 | ||||||||||
October 2017 Transactions Acquisitions [Member] | Distribution Agreements [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Other identifiable intangible assets | 124,750 | ||||||||||
October 2017 Transactions Acquisitions [Member] | Customer Lists [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Other identifiable intangible assets | $ 4,950 | ||||||||||
2017 Acquisition [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash | 612 | ||||||||||
Inventories | 56,309 | ||||||||||
Prepaid expenses and other current assets | 15,094 | ||||||||||
Accounts receivable from The Coca-Cola Company | 7,792 | ||||||||||
Property, plant and equipment | 230,254 | ||||||||||
Other assets (including deferred taxes) | 9,643 | ||||||||||
Goodwill | 35,867 | ||||||||||
Total acquired assets | 577,771 | ||||||||||
Current liabilities (acquisition related contingent consideration) | 7,312 | ||||||||||
Other current liabilities | 13,436 | ||||||||||
Other liabilities (acquisition related contingent consideration) | 121,568 | ||||||||||
Other liabilities | 5,096 | ||||||||||
Total assumed liabilities | 147,412 | ||||||||||
2017 Acquisition [Member] | Distribution Agreements [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Other identifiable intangible assets | 213,000 | ||||||||||
2017 Acquisition [Member] | Customer Lists [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Other identifiable intangible assets | $ 9,200 | ||||||||||
Easton and Salisbury, Maryland and Richmond and Yorktown, Virginia Expansion Territories Acquisitions and Sandston, Virginia Expansion Facility Acquisition [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash | $ 179 | ||||||||||
Inventories | 10,159 | ||||||||||
Prepaid expenses and other current assets | 2,775 | ||||||||||
Accounts receivable from The Coca-Cola Company | 1,121 | ||||||||||
Property, plant and equipment | 46,149 | ||||||||||
Other assets (including deferred taxes) | 2,351 | ||||||||||
Goodwill | 9,396 | ||||||||||
Total acquired assets | 73,430 | ||||||||||
Current liabilities (acquisition related contingent consideration) | 361 | ||||||||||
Other current liabilities | 591 | ||||||||||
Accounts payable to The Coca-Cola Company | 650 | ||||||||||
Other liabilities (acquisition related contingent consideration) | 6,144 | ||||||||||
Total assumed liabilities | 7,746 | ||||||||||
Easton and Salisbury, Maryland and Richmond and Yorktown, Virginia Expansion Territories Acquisitions and Sandston, Virginia Expansion Facility Acquisition [Member] | Distribution Agreements [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Other identifiable intangible assets | 750 | ||||||||||
Easton and Salisbury, Maryland and Richmond and Yorktown, Virginia Expansion Territories Acquisitions and Sandston, Virginia Expansion Facility Acquisition [Member] | Customer Lists [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Other identifiable intangible assets | $ 550 | ||||||||||
Alexandria, Virginia and Capitol Heights and La Plata, Maryland Expansion Territories Acquisitions [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash | $ 219 | ||||||||||
Inventories | 3,748 | ||||||||||
Prepaid expenses and other current assets | 1,945 | ||||||||||
Accounts receivable from The Coca-Cola Company | 1,162 | ||||||||||
Property, plant and equipment | 54,135 | ||||||||||
Other assets (including deferred taxes) | 1,541 | ||||||||||
Goodwill | 1,962 | ||||||||||
Total acquired assets | 64,712 | ||||||||||
Current liabilities (acquisition related contingent consideration) | 742 | ||||||||||
Other current liabilities | 4,231 | ||||||||||
Other liabilities (acquisition related contingent consideration) | 23,924 | ||||||||||
Other liabilities | 266 | ||||||||||
Total assumed liabilities | $ 29,163 | ||||||||||
Baltimore, Hagerstown and Cumberland, Maryland Expansion Territories Acquisitions and Silver Spring and Baltimore, Maryland Expansion Facilities Acquisitions [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash | $ 161 | ||||||||||
Inventories | 13,850 | ||||||||||
Prepaid expenses and other current assets | 3,774 | ||||||||||
Accounts receivable from The Coca-Cola Company | 1,126 | ||||||||||
Property, plant and equipment | 57,738 | ||||||||||
Other assets (including deferred taxes) | 5,514 | ||||||||||
Goodwill | 8,368 | ||||||||||
Total acquired assets | 113,981 | ||||||||||
Current liabilities (acquisition related contingent consideration) | 1,307 | ||||||||||
Other current liabilities | 5,482 | ||||||||||
Other liabilities (acquisition related contingent consideration) | 35,561 | ||||||||||
Other liabilities | 2,635 | ||||||||||
Total assumed liabilities | 44,985 | ||||||||||
Baltimore, Hagerstown and Cumberland, Maryland Expansion Territories Acquisitions and Silver Spring and Baltimore, Maryland Expansion Facilities Acquisitions [Member] | Distribution Agreements [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Other identifiable intangible assets | 22,000 | ||||||||||
Baltimore, Hagerstown and Cumberland, Maryland Expansion Territories Acquisitions and Silver Spring and Baltimore, Maryland Expansion Facilities Acquisitions [Member] | Customer Lists [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Other identifiable intangible assets | $ 1,450 | ||||||||||
Cincinnati, Dayton, Lima and Portsmouth, Ohio and Louisa, Kentucky Expansion Territories Acquisitions and Cincinnati, Ohio Expansion Facility Acquisition [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash | $ 150 | ||||||||||
Inventories | 18,513 | ||||||||||
Prepaid expenses and other current assets | 4,228 | ||||||||||
Accounts receivable from The Coca-Cola Company | 1,327 | ||||||||||
Property, plant and equipment | 67,943 | ||||||||||
Other assets (including deferred taxes) | 682 | ||||||||||
Goodwill | 8,473 | ||||||||||
Total acquired assets | 183,966 | ||||||||||
Current liabilities (acquisition related contingent consideration) | 3,973 | ||||||||||
Other current liabilities | 8,513 | ||||||||||
Other liabilities (acquisition related contingent consideration) | 71,237 | ||||||||||
Other liabilities | 573 | ||||||||||
Total assumed liabilities | 84,296 | ||||||||||
Cincinnati, Dayton, Lima and Portsmouth, Ohio and Louisa, Kentucky Expansion Territories Acquisitions and Cincinnati, Ohio Expansion Facility Acquisition [Member] | Distribution Agreements [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Other identifiable intangible assets | 79,900 | ||||||||||
Cincinnati, Dayton, Lima and Portsmouth, Ohio and Louisa, Kentucky Expansion Territories Acquisitions and Cincinnati, Ohio Expansion Facility Acquisition [Member] | Customer Lists [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Other identifiable intangible assets | $ 2,750 | ||||||||||
2016 Acquisition [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash | 709 | ||||||||||
Inventories | 46,270 | ||||||||||
Prepaid expenses and other current assets | 12,722 | ||||||||||
Accounts receivable from The Coca-Cola Company | 4,736 | ||||||||||
Property, plant and equipment | 225,965 | ||||||||||
Other assets (including deferred taxes) | 10,088 | ||||||||||
Goodwill | 28,199 | ||||||||||
Total acquired assets | 436,089 | ||||||||||
Current liabilities (acquisition related contingent consideration) | 6,383 | ||||||||||
Other current liabilities | 18,817 | ||||||||||
Accounts payable to The Coca-Cola Company | 650 | ||||||||||
Other liabilities (acquisition related contingent consideration) | 136,866 | ||||||||||
Other liabilities | 3,474 | ||||||||||
Total assumed liabilities | 166,190 | ||||||||||
2016 Acquisition [Member] | Distribution Agreements [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Other identifiable intangible assets | 102,650 | ||||||||||
2016 Acquisition [Member] | Customer Lists [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Other identifiable intangible assets | $ 4,750 |
Acquisitions and Divestitures69
Acquisitions and Divestitures - Summary of Acquired Assets and Assumed Liabilities as of Acquisition Date (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Oct. 02, 2017 | Jan. 01, 2017 | Jan. 03, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 169,316 | $ 144,586 | $ 117,954 | |
Current liabilities (acquisition related contingent consideration) | 23,339 | 15,782 | ||
Other liabilities (acquisition related contingent consideration) | $ 357,952 | $ 237,655 | ||
CCR Exchange Transaction Acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 91 | |||
Inventories | 10,667 | |||
Prepaid expenses and other current assets | 3,218 | |||
Accounts receivable from The Coca-Cola Company | 1,092 | |||
Property, plant and equipment | 47,066 | |||
Other assets (including deferred taxes) | 624 | |||
Goodwill | 6,378 | |||
Total acquired assets | 152,836 | |||
Other current liabilities | 2,760 | |||
Other liabilities | 1 | |||
Total assumed liabilities | 2,761 | |||
Memphis Transaction [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash | 100 | |||
Inventories | 3,354 | |||
Prepaid expenses and other current assets | 1,222 | |||
Accounts receivable from The Coca-Cola Company | 1,089 | |||
Property, plant and equipment | 20,795 | |||
Other assets (including deferred taxes) | 265 | |||
Goodwill | 4,917 | |||
Total acquired assets | 63,242 | |||
Current liabilities (acquisition related contingent consideration) | 1,458 | |||
Other current liabilities | 3,241 | |||
Other liabilities (acquisition related contingent consideration) | 18,848 | |||
Other liabilities | 94 | |||
Total assumed liabilities | 23,641 | |||
United Exchange Transaction Acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Inventories | 829 | |||
Prepaid expenses and other current assets | 314 | |||
Accounts receivable from The Coca-Cola Company | 210 | |||
Property, plant and equipment | 2,784 | |||
Goodwill | 2,697 | |||
Total acquired assets | 21,334 | |||
Other current liabilities | 491 | |||
Total assumed liabilities | 491 | |||
October 2017 Transactions Acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash | 191 | |||
Inventories | 14,850 | |||
Prepaid expenses and other current assets | 4,754 | |||
Accounts receivable from The Coca-Cola Company | 2,391 | |||
Property, plant and equipment | 70,645 | |||
Other assets (including deferred taxes) | 889 | |||
Goodwill | 13,992 | |||
Total acquired assets | 237,412 | |||
Current liabilities (acquisition related contingent consideration) | 1,458 | |||
Other current liabilities | 6,492 | |||
Other liabilities (acquisition related contingent consideration) | 18,848 | |||
Other liabilities | 95 | |||
Total assumed liabilities | 26,893 | |||
Distribution Agreements [Member] | CCR Exchange Transaction Acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Other identifiable intangible assets | 80,500 | |||
Distribution Agreements [Member] | Memphis Transaction [Member] | ||||
Business Acquisition [Line Items] | ||||
Other identifiable intangible assets | 30,300 | |||
Distribution Agreements [Member] | United Exchange Transaction Acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Other identifiable intangible assets | 13,950 | |||
Distribution Agreements [Member] | October 2017 Transactions Acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Other identifiable intangible assets | 124,750 | |||
Customer Lists [Member] | CCR Exchange Transaction Acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Other identifiable intangible assets | 3,200 | |||
Customer Lists [Member] | Memphis Transaction [Member] | ||||
Business Acquisition [Line Items] | ||||
Other identifiable intangible assets | 1,200 | |||
Customer Lists [Member] | United Exchange Transaction Acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Other identifiable intangible assets | 550 | |||
Customer Lists [Member] | October 2017 Transactions Acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Other identifiable intangible assets | $ 4,950 |
Acquisitions and Divestitures70
Acquisitions and Divestitures - Summary of Carrying Value of Assets and Liabilities of Divesture (Detail) - October 2017 Divestitures [Member] $ in Millions | Oct. 31, 2017USD ($) |
Business Acquisition [Line Items] | |
Cash | $ 303 |
Inventories | 13,717 |
Prepaid expenses and other current assets | 1,199 |
Property, plant and equipment | 44,380 |
Other assets (including deferred taxes) | 604 |
Goodwill | 13,073 |
Distribution agreements | 65,043 |
Total divested assets | 138,319 |
Other current liabilities | 5,683 |
Pension and postretirement benefit obligations | 16,855 |
Total divested liabilities | $ 22,538 |
Acquisitions and Divestitures71
Acquisitions and Divestitures - Schedule of Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Jan. 01, 2017 | Oct. 02, 2016 | Jul. 03, 2016 | Apr. 03, 2016 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Business Acquisition [Line Items] | |||||||||||
Net sales | $ 1,126,149 | $ 1,162,526 | $ 1,169,291 | $ 865,702 | $ 841,560 | $ 849,028 | $ 840,384 | $ 625,456 | $ 4,323,668 | $ 3,156,428 | $ 2,306,458 |
Income from operations | 96,179 | 127,859 | 98,144 | ||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | BYB Brands Inc [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Net sales | 23,875 | ||||||||||
Income from operations | 1,809 | ||||||||||
2015 Expansion Territories & 2015 Asset Exchange [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Net sales | 484,485 | 469,440 | 278,691 | ||||||||
Income from operations | 1,540 | 1,907 | 3,364 | ||||||||
2016 System Transformation Transactions [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Net sales | 1,011,638 | 592,329 | |||||||||
Income from operations | 18,930 | 22,373 | |||||||||
2017 System Transformation Transactions [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Net sales | 740,259 | ||||||||||
Income from operations | 10,754 | ||||||||||
2015 Expansion Territories and 2016 and 2017 System Transformation Transactions and 2015 Asset Exchange [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Net sales | 2,236,382 | 1,061,769 | 278,691 | ||||||||
Income from operations | $ 31,224 | $ 24,280 | $ 3,364 |
Acquisitions and Divestitures72
Acquisitions and Divestitures - Schedule of Unaudited Pro Forma Net Sales (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Jan. 01, 2017 | Oct. 02, 2016 | Jul. 03, 2016 | Apr. 03, 2016 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Business Combinations [Abstract] | |||||||||||
Net sales as reported | $ 1,126,149 | $ 1,162,526 | $ 1,169,291 | $ 865,702 | $ 841,560 | $ 849,028 | $ 840,384 | $ 625,456 | $ 4,323,668 | $ 3,156,428 | $ 2,306,458 |
Pro forma adjustments (unaudited) | 196,224 | 1,153,358 | |||||||||
Net sales pro forma (unaudited) | $ 4,519,892 | $ 4,309,786 |
Acquisitions and Divestitures73
Acquisitions and Divestitures - Schedule of Unaudited Pro Forma Income From Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Business Combinations [Abstract] | |||
Income from operations as reported | $ 96,179 | $ 127,859 | $ 98,144 |
Pro forma adjustments (unaudited) | 5,391 | 76,906 | |
Income from operations pro forma (unaudited) | $ 101,570 | $ 204,765 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 116,354 | $ 90,259 |
Manufacturing materials | 33,073 | 23,196 |
Plastic shells, plastic pallets and other inventories | 34,191 | 30,098 |
Total inventories | $ 183,618 | $ 143,553 |
Prepaid Expenses and Other Cu75
Prepaid Expenses and Other Current Assets - Summary of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Prepaid Expense And Other Assets [Abstract] | ||
Current portion of income taxes | $ 35,930 | $ 21,227 |
Repair parts | 30,530 | 20,338 |
Prepayments for sponsorships | 6,358 | 1,879 |
Prepaid software | 5,855 | 5,331 |
Commodity hedges at fair market value | 4,420 | 1,289 |
Other prepaid expenses and other current assets | 17,553 | 13,770 |
Total prepaid expenses and other current assets | $ 100,646 | $ 63,834 |
Property, Plant and Equipment -
Property, Plant and Equipment - Principal Categories and Estimated Useful Lives of Property, Plant and Equipment, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Jan. 01, 2017 | |
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 1,798,824 | $ 1,611,442 |
Less: Accumulated depreciation and amortization | 767,436 | 798,453 |
Property, plant and equipment, net | 1,031,388 | 812,989 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | 78,825 | 68,541 |
Buildings [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 211,308 | 201,247 |
Buildings [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives | 8 years | |
Buildings [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives | 50 years | |
Machinery and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 315,117 | 229,119 |
Machinery and Equipment [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives | 5 years | |
Machinery and Equipment [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives | 20 years | |
Transportation Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 351,479 | 316,929 |
Transportation Equipment [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives | 4 years | |
Transportation Equipment [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives | 20 years | |
Furniture and Fixtures [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 89,559 | 78,219 |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives | 3 years | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives | 10 years | |
Cold Drink Dispensing Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 488,208 | 484,771 |
Cold Drink Dispensing Equipment [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives | 5 years | |
Cold Drink Dispensing Equipment [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives | 17 years | |
Leasehold and Land Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 125,348 | 112,393 |
Leasehold and Land Improvements [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives | 5 years | |
Leasehold and Land Improvements [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives | 20 years | |
Software for Internal Use [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 113,490 | 105,405 |
Software for Internal Use [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives | 3 years | |
Software for Internal Use [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, estimated useful lives | 10 years | |
Construction in Progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 25,490 | $ 14,818 |
Property, Plant and Equipment77
Property, Plant and Equipment - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense including amortization expense | $ 150,400,000 | $ 111,600,000 | $ 78,100,000 |
Impairment expense | $ 0 | $ 0 | $ 0 |
Leased Property Under Capital78
Leased Property Under Capital Leases - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Capital Leased Assets [Line Items] | |
Leased property under capital leases from related party transactions | $ 15.1 |
Minimum [Member] | Assets Held under Capital Leases [Member] | |
Capital Leased Assets [Line Items] | |
Estimated useful lives of leased property under capital lease | 3 years |
Maximum [Member] | Assets Held under Capital Leases [Member] | |
Capital Leased Assets [Line Items] | |
Estimated useful lives of leased property under capital lease | 20 years |
Leased Property Under Capital79
Leased Property Under Capital Leases - Leased Property Under Capital Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Leases [Abstract] | ||
Leased property under capital leases | $ 95,870 | $ 94,125 |
Less: Accumulated amortization | 66,033 | 60,573 |
Leased property under capital leases, net | $ 29,837 | $ 33,552 |
Franchise Rights - Reconciliati
Franchise Rights - Reconciliation of Activity for Franchise Rights (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jul. 03, 2016 | Dec. 31, 2017 | Jan. 01, 2017 | |
Indefinite Lived Intangible Assets Excluding Goodwill [Line Items] | |||
Beginning balance - franchise rights | $ 533,040 | $ 527,540 | |
Conversion from franchise rights to distribution rights | $ (533,040) | ||
Ending balance - franchise rights | 533,040 | ||
2015 Asset Exchange [Member] | |||
Indefinite Lived Intangible Assets Excluding Goodwill [Line Items] | |||
2015 Asset Exchange | $ 5,500 | $ 5,500 |
Franchise Rights - Additional I
Franchise Rights - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jul. 03, 2016 | Jan. 01, 2017 | |
2015 Asset Exchange [Member] | ||
Indefinite Lived Intangible Assets Excluding Goodwill [Line Items] | ||
Franchise rights | $ 5,500 | $ 5,500 |
Goodwill - Schedule of Reconcil
Goodwill - Schedule of Reconciliation of Activity for Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Jan. 01, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Beginning balance - goodwill | $ 144,586 | $ 117,954 |
Goodwill, System Transformation Transactions acquisitions | 35,867 | 26,272 |
Goodwill, Divestitures | (13,073) | |
Goodwill, 2015 Asset Exchange | (682) | |
Goodwill, Measurement period adjustments | 1,936 | 1,042 |
Ending balance - goodwill | $ 169,316 | $ 144,586 |
Goodwill - Schedule of Reconc83
Goodwill - Schedule of Reconciliation of Activity for Goodwill (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Jan. 01, 2017 | |
System Transformation Transactions [Member] | ||
Indefinite Lived Intangible Assets Including Goodwill [Line Items] | ||
Goodwill, increase (decrease) | $ 7.4 | $ (5.8) |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Impairment of the carrying value of goodwill | $ 0 | $ 0 | $ 0 |
Distribution Agreements,Net - A
Distribution Agreements,Net - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Apr. 02, 2017 | Dec. 31, 2017 | |
Finite Lived Intangible Assets [Line Items] | ||
Impairment of distribution agreements, net | $ 0 | |
Distribution Agreements [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated useful life | 40 years | |
Amortization expense for 2018 | 23,600,000 | |
Amortization expense for 2019 | 23,600,000 | |
Amortization expense for 2020 | 23,600,000 | |
Amortization expense for 2021 | 23,600,000 | |
Amortization expense for 2022 | $ 23,600,000 | |
Distribution Agreements [Member] | Comprehensive Beverage Agreement [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated useful life | 40 years | |
Distribution Agreements [Member] | Minimum [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated useful life | 20 years | |
Distribution Agreements [Member] | Maximum [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated useful life | 40 years |
Distribution Agreements, Net -
Distribution Agreements, Net - Other Identifiable Intangible Assets Net (Detail) - Distribution Agreements [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 |
Finite Lived Intangible Assets [Line Items] | |||
Distribution agreements at cost | $ 939,527 | $ 242,486 | |
Less: Accumulated amortization | 26,175 | 7,498 | |
Total other identifiable intangible assets, net | $ 913,352 | $ 234,988 | $ 129,786 |
Distribution Agreements, Net 87
Distribution Agreements, Net - Reconciliation of Activity for Other Identifiable Intangible Assets Net (Detail) - Distribution Agreements [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Jan. 01, 2017 | |
Finite Lived Intangible Assets [Line Items] | ||
Total Other Identifiable Intangible Assets, Beginning Balance | $ 234,988 | $ 129,786 |
Conversion to distribution rights from franchise rights | 533,040 | |
System Transformation Transactions acquisitions | 213,000 | 86,650 |
October 2017 Divestitures | (65,043) | |
Measurement period adjustment | 16,000 | |
Glacéau Distribution Agreement | 21,032 | |
Other distribution agreements | 44 | 1,695 |
Additional accumulated amortization | (18,677) | (4,175) |
Total Other Identifiable Intangible Assets, Ending Balance | $ 913,352 | $ 234,988 |
Distribution Agreements, Net 88
Distribution Agreements, Net - Reconciliation of Activity for Other Identifiable Intangible Assets Net (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
System Transformation Transactions [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Increase in acquisitions for expansion territories and expansion facilities acquired | $ 51.5 |
Customer Lists and Other Iden89
Customer Lists and Other Identifiable Intangible Assets, Net - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Finite Lived Intangible Assets [Line Items] | |
Impairment of finite-lived identifiable intangible assets | $ 0 |
Customer Lists and Other Identifiable Intangible Assets [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Amortization expense for 2018 | 1,800,000 |
Amortization expense for 2019 | 1,800,000 |
Amortization expense for 2020 | 1,800,000 |
Amortization expense for 2021 | 1,800,000 |
Amortization expense for 2022 | $ 1,800,000 |
Customer Lists and Other Identifiable Intangible Assets [Member] | Minimum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Estimated useful life | 12 years |
Customer Lists and Other Identifiable Intangible Assets [Member] | Maximum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Estimated useful life | 20 years |
Customer Lists and Other Iden90
Customer Lists and Other Identifiable Intangible Assets, Net - Other Identifiable Intangible Assets (Detail) - Customer Lists and Other Identifiable Intangible Assets [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 |
Finite Lived Intangible Assets [Line Items] | |||
Other identifiable intangible assets, cost | $ 25,288 | $ 15,938 | |
Less: Accumulated amortization | 6,968 | 5,511 | |
Total other identifiable intangible assets, net | $ 18,320 | $ 10,427 | $ 6,662 |
Customer Lists and Other Iden91
Customer Lists and Other Identifiable Intangible Assets, Net - Reconciliation of Activity for Other Identifiable Intangible Assets (Detail) - Customer Lists and Other Identifiable Intangible Assets [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | ||
Finite Lived Intangible Assets [Line Items] | |||
Total Other Identifiable Intangible Assets, Beginning Balance | $ 10,427 | $ 6,662 | |
System Transformation Transactions acquisitions | [1] | 9,200 | 4,600 |
Measurement period adjustment | [2] | 150 | |
Additional accumulated amortization | (1,457) | (835) | |
Total Other Identifiable Intangible Assets, Ending Balance | $ 18,320 | $ 10,427 | |
[1] | System Transformation Transactions acquisitions includes an increase of $0.5 million in 2017 from the opening balance sheets for the Expansion Territories and Expansion Facilities acquired in the System Transformation during 2017, as disclosed in the financial statements in the Company’s filed periodic reports. These adjustments are for post-closing adjustments made in accordance with the applicable asset purchase agreement or asset exchange agreement for each System Transformation Transaction. The adjustments to amortization expense associated with these measurement period adjustments were not material to the consolidated financial statements. | ||
[2] | Measurement period adjustment relates to post-closing adjustments made in accordance with the terms and conditions of the September 2016 Distribution APA and the September 2016 Manufacturing APA for the October 2016 Transactions. The adjustments to amortization expense associated with this measurement period adjustment were not material to the consolidated financial statements. |
Customer Lists and Other Iden92
Customer Lists and Other Identifiable Intangible Assets, Net - Reconciliation of Activity for Other Identifiable Intangible Assets (Parenthetical) (Detail) - System Transformation Transactions [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Finite Lived Intangible Assets [Line Items] | |
Increase in acquisitions for expansion territories and expansion facilities acquired | $ 51.5 |
Customer Lists [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Increase in acquisitions for expansion territories and expansion facilities acquired | $ 0.5 |
Other Accrued Liabilities - Sum
Other Accrued Liabilities - Summary of Other Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Accounts Payable And Accrued Liabilities Current [Abstract] | ||
Checks and transfers yet to be presented for payment from zero balance cash accounts | $ 37,262 | $ 19,326 |
Accrued insurance costs | 35,433 | 28,248 |
Accrued marketing costs | 33,376 | 24,714 |
Employee and retiree benefit plan accruals | 27,024 | 23,858 |
Current portion of acquisition related contingent consideration | 23,339 | 15,782 |
Accrued taxes (other than income taxes) | 6,391 | 2,836 |
Current deferred proceeds from bottling agreements conversion | 2,286 | |
All other accrued expenses | 20,419 | 19,121 |
Total other accrued liabilities | $ 185,530 | $ 133,885 |
Debt - Summary of Debt (Detail)
Debt - Summary of Debt (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Jan. 01, 2017 | |
Debt Instrument [Line Items] | ||
Debt issuance costs | $ (3,580) | $ (4,098) |
Total debt | 1,088,018 | 907,254 |
Long-term debt | $ 1,088,018 | 907,254 |
Revolving Credit Facility [Member] | Non-public [Member] | ||
Debt Instrument [Line Items] | ||
Maturity | 2,019 | |
Line of credit | $ 207,000 | 152,000 |
Interest Rate, Term | Variable | |
Interest Paid | Varies | |
3.28% Senior Notes 2023 [Member] | Non-public [Member] | ||
Debt Instrument [Line Items] | ||
Maturity | 2,023 | |
Interest Rate | 3.28% | |
Senior Notes | $ 125,000 | |
Interest Paid | Semi-annually | |
7.00% Senior Notes 2019 [Member] | Public [Member] | ||
Debt Instrument [Line Items] | ||
Maturity | 2,019 | |
Interest Rate | 7.00% | |
Senior Notes | $ 110,000 | 110,000 |
Unamortized discount on Senior Notes | $ (332) | (570) |
Interest Paid | Semi-annually | |
3.80% Senior Notes 2025 [Member] | Public [Member] | ||
Debt Instrument [Line Items] | ||
Maturity | 2,025 | |
Interest Rate | 3.80% | |
Senior Notes | $ 350,000 | 350,000 |
Unamortized discount on Senior Notes | $ (70) | (78) |
Interest Paid | Semi-annually | |
Term Loan [Member] | Non-public [Member] | ||
Debt Instrument [Line Items] | ||
Maturity | 2,021 | |
Term Loan | $ 300,000 | $ 300,000 |
Interest Rate, Term | Variable | |
Interest Paid | Varies |
Debt - Summary of Debt (Parenth
Debt - Summary of Debt (Parenthetical) (Detail) | Dec. 31, 2017 |
7.00% Senior Notes 2019 [Member] | |
Debt Instrument [Line Items] | |
Senior notes, issued at par percentage | 98.238% |
3.80% Senior Notes 2025 [Member] | |
Debt Instrument [Line Items] | |
Senior notes, issued at par percentage | 99.975% |
Debt - Principal Maturities of
Debt - Principal Maturities of Debt Outstanding (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 15,000 |
2,019 | 347,000 |
2,020 | 37,500 |
2,021 | 217,500 |
Thereafter | 475,000 |
Total debt | $ 1,092,000 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2017 | Feb. 27, 2017 | Jan. 01, 2017 | Jun. 07, 2016 | Apr. 30, 2015 | |
Debt Instrument [Line Items] | |||||
Company's outstanding obligations for capital leases | $ 43,500,000 | $ 48,700,000 | |||
Debt issued by subsidiaries | 0 | ||||
Guarantees of company debt | $ 0 | ||||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date of debt instruments | Oct. 16, 2019 | ||||
Aggregate maximum borrowing capacity | $ 450,000,000 | ||||
Period of unsecured revolving credit agreement | 5 years | ||||
Letters of credit | $ 50,000,000 | ||||
Annual facility fee, percentage | 0.15% | ||||
Senior Unsecured Notes Due in 2023 [Member] | PGIM, Inc and Certain of Its Affiliates [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior notes, face amount | $ 125,000,000 | ||||
Debt instrument, interest rate | 3.28% | ||||
Debt instrument, frequency of periodic payment | semi-annually | ||||
Maturity date of debt instruments | Feb. 27, 2023 | ||||
Aggregate maximum borrowing capacity | $ 175,000,000 | ||||
Term Loan Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Term loan facility due in fiscal 2018 using Revolving Credit Facility | $ 15,000,000 | ||||
Senior notes, face amount | $ 300,000,000 | ||||
Maturity date of debt instruments | Jun. 7, 2021 | ||||
Aggregate maximum borrowing capacity | $ 500,000,000 | ||||
Period of unsecured term loan agreement | 5 years |
Derivative Financial Instrume98
Derivative Financial Instruments - Summary of Pre-Tax Changes in Fair Value (Detail) - Commodity Contract [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) | $ 3,130 | $ 4,728 | $ (3,439) |
Cost of Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) | 2,815 | 2,896 | (2,354) |
Selling, Delivery and Administrative Expenses [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) | $ 315 | $ 1,832 | $ (1,085) |
Derivative Financial Instrume99
Derivative Financial Instruments - Summary of Fair Values and Classification in Consolidated Balance Sheets of Derivative Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Assets: | ||
Total assets | $ 4,420 | $ 1,289 |
Commodity Contract [Member] | Not Designated as Hedging Instruments [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Assets: | ||
Total assets | $ 4,420 | $ 1,289 |
Derivative Financial Instrum100
Derivative Financial Instruments - Summary of Gross Derivative Assets and Gross Derivative Liabilities in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Gross derivative assets | $ 4,481 | $ 1,297 |
Gross derivative liabilities | $ 61 | $ 8 |
Derivative Financial Instrum101
Derivative Financial Instruments - Summary of Outstanding Commodity Derivative Agreements (Detail) - Commodity Hedging Agreements [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Jan. 01, 2017 | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Notional amount of outstanding commodity derivative agreements | $ 59,564,000 | $ 13,146,000 |
Latest maturity date of outstanding commodity derivative agreements | 2018-12 | 2017-12 |
Derivative Financial Instrum102
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | Feb. 28, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
Commodity Contract [Member] | |||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Notional amount of commodity derivative | $ 59,564,000 | $ 13,146,000 | |
Commodity Contract [Member] | Subsequent Event [Member] | |||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Notional amount of commodity derivative | $ 91,700,000 | ||
Commodity Hedge Agreements Terminated [Member] | Subsequent Event [Member] | |||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Notional amount of commodity derivative | $ 22,600,000 |
Fair Values of Financial Ins103
Fair Values of Financial Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Apr. 02, 2017 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $ 0 | $ 0 | $ 0 | |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 0 | 0 | 0 | |
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount | 0 | 0 | 0 | |
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount | 0 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net | 0 | $ 0 | $ 0 | |
Amount payable annually under acquisition related contingent consideration arrangements, value, low | 23,000,000 | |||
Amount payable annually under acquisition related contingent consideration arrangements, value, high | $ 47,000,000 | |||
Distribution Rights [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Estimated useful life | 40 years | |||
Distribution Rights [Member] | Maximum [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Estimated useful life | 40 years | |||
Distribution Rights [Member] | Minimum [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Estimated useful life | 20 years |
Fair Values of Financial Ins104
Fair Values of Financial Instruments - Deferred Compensation Plan Commodity Hedging Agreements and Acquisition Related Contingent Consideration (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 |
Assets: | |||
Commodity hedging agreements | $ 4,420 | $ 1,289 | |
Fair Value Level 1 [Member] | |||
Assets: | |||
Deferred compensation plan assets | 33,166 | 24,903 | |
Liabilities: | |||
Deferred compensation plan liabilities | 33,166 | 24,903 | |
Fair Value Level 2 [Member] | |||
Liabilities: | |||
Non-public variable rate debt | 507,000 | 452,000 | |
Non-public fixed rate debt | 126,400 | ||
Public debt securities | 475,100 | 475,800 | |
Fair Value Level 2 [Member] | Commodity Contract [Member] | |||
Assets: | |||
Commodity hedging agreements | 4,420 | 1,289 | |
Fair Value Level 3 [Member] | |||
Liabilities: | |||
Acquisition related contingent consideration | 381,291 | 253,437 | $ 136,570 |
Carrying Amount [Member] | |||
Assets: | |||
Deferred compensation plan assets | 33,166 | 24,903 | |
Liabilities: | |||
Deferred compensation plan liabilities | 33,166 | 24,903 | |
Non-public variable rate debt | 506,398 | 451,222 | |
Non-public fixed rate debt | 124,829 | ||
Public debt securities | 456,791 | 456,032 | |
Acquisition related contingent consideration | 381,291 | 253,437 | |
Carrying Amount [Member] | Commodity Contract [Member] | |||
Assets: | |||
Commodity hedging agreements | 4,420 | 1,289 | |
Total Fair Value [Member] | |||
Assets: | |||
Deferred compensation plan assets | 33,166 | 24,903 | |
Liabilities: | |||
Deferred compensation plan liabilities | 33,166 | 24,903 | |
Acquisition related contingent consideration | 381,291 | 253,437 | |
Non-public variable rate debt | 507,000 | 452,000 | |
Non-public fixed rate debt | 126,400 | ||
Public debt securities | 475,100 | 475,800 | |
Total Fair Value [Member] | Commodity Contract [Member] | |||
Assets: | |||
Commodity hedging agreements | $ 4,420 | $ 1,289 |
Fair Values of Financial Ins105
Fair Values of Financial Instruments - Summary of Reconciliation of Acquisition Related Contingent Consideration (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Payment of acquisition related contingent consideration | $ 16,738 | $ 13,550 | $ 4,039 | |
(Favorable)/unfavorable fair value adjustment | 3,226 | (1,910) | 3,576 | |
Level 3 [Member] | ||||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Opening balance - Level 3 liability | 253,437 | 136,570 | ||
Measurement period adjustment | [1] | 14,826 | ||
Payment of acquisition related contingent consideration | (16,738) | (13,550) | ||
Reclassification to current payables | (2,340) | (1,530) | ||
(Favorable)/unfavorable fair value adjustment | 3,226 | (1,910) | ||
Ending balance - Level 3 liability | 381,291 | 253,437 | $ 136,570 | |
Level 3 [Member] | System Transformation Transactions [Member] | ||||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Increase due to acquisitions | [2] | $ 128,880 | $ 133,857 | |
[1] | Measurement period adjustments relate to post-closing adjustments made in accordance with the terms and conditions of the applicable asset purchase agreement or asset exchange agreement for each System Transformation Transaction. | |||
[2] | Increase due to System Transformation Transactions acquisitions includes an increase in the acquisition related contingent consideration of $62.5 million in 2017 from the opening balance sheets for the Expansion Territories and Expansion Facilities acquired in the System Transformation during 2017, as disclosed in the financial statements in the Company’s filed periodic reports. These adjustments are for post-closing adjustments made in accordance with the terms and conditions of the applicable asset purchase agreement or asset exchange agreement for each System Transformation Transaction. |
Fair Values of Financial Ins106
Fair Values of Financial Instruments - Summary of Reconciliation of Acquisition Related Contingent Consideration (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
System Transformation Transactions [Member] | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Increase in acquisition related contingent consideration | $ 62.5 |
Other Liabilities - Summary of
Other Liabilities - Summary of Other Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Non-current portion of acquisition related contingent consideration | $ 357,952 | $ 237,655 |
Accruals for executive benefit plans | 125,791 | 123,078 |
Non-current deferred proceeds from bottling agreements conversion | 87,449 | |
Non-current deferred proceeds from Legacy Facilities Credit | 29,881 | |
Other | 19,506 | 17,839 |
Total other liabilities | $ 620,579 | $ 378,572 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2017USD ($)Product | Jan. 01, 2017USD ($)Product | Jan. 03, 2016USD ($)Product | |
Loss Contingencies [Line Items] | |||
Rental expense for noncancellable operating leases | $ 18,700,000 | $ 13,600,000 | $ 8,900,000 |
Letters of credit totaled | 35,600,000 | 29,700,000 | |
Long-term marketing contractual arrangements | 132,800,000 | ||
SAC [Member] | |||
Loss Contingencies [Line Items] | |||
Proceeds from management fees received from SAC | $ 9,100,000 | $ 9,000,000 | $ 8,500,000 |
Cases of finished product obligated to purchase on an annual basis | Product | 17,500,000 | ||
Purchased number of cases finished product from SAC | Product | 29,900,000 | 29,900,000 | 28,300,000 |
Debt guarantee for related party | $ 23,900,000 | $ 23,300,000 | |
Guaranteed portion of SAC's and Southeastern's debt, collateral held | The Company holds no assets as collateral against the SAC guarantee | ||
Impairment of investments | $ 0 | $ 0 | $ 0 |
Southeastern [Member] | |||
Loss Contingencies [Line Items] | |||
Purchase requirements of plastic bottles | 80.00% | ||
Effective date of debt guarantee for related party eliminated | Nov. 17, 2017 |
Commitments and Contingencie109
Commitments and Contingencies - Summary of Future Minimum Lease Payments Including Renewal Options for all Noncancellable Operating Leases and Capital Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Capital Leases, 2018 | $ 10,706 | |
Capital Leases, 2019 | 10,434 | |
Capital Leases, 2020 | 10,613 | |
Capital Leases, 2021 | 6,218 | |
Capital Leases, 2022 | 2,697 | |
Capital Leases, Thereafter | 10,859 | |
Total Capital Leases including interest | 51,527 | |
Less: Amounts representing interest | 8,058 | |
Present value of minimum lease principal payments | 43,469 | |
Less: Current portion of principal payment obligations under capital leases | 8,221 | $ 7,527 |
Long-term portion of principal payment obligations under capital leases | 35,248 | $ 41,194 |
Operating Leases, 2018 | 12,497 | |
Operating Leases, 2019 | 11,872 | |
Operating Leases, 2020 | 11,380 | |
Operating Leases, 2021 | 10,879 | |
Operating Leases, 2022 | 9,867 | |
Operating Leases, Thereafter | 34,717 | |
Total Operating Leases | 91,212 | |
Total Capital And Operating Leases [Member] | ||
Total future minimum payments due in 2018 | 23,203 | |
Total future minimum payments due in 2019 | 22,306 | |
Total future minimum payments due in 2020 | 21,993 | |
Total future minimum payments due in 2021 | 17,097 | |
Total future minimum payments due in 2022 | 12,564 | |
Total future minimum payments due, in Thereafter | 45,576 | |
Total minimum lease payments including interest | $ 142,739 |
Commitments and Contingencie110
Commitments and Contingencies - Summary of Company's Purchases from Manufacturing Cooperatives (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Loss Contingencies [Line Items] | |||
Total purchases from manufacturing cooperatives | $ 257,039 | $ 230,001 | $ 207,768 |
SAC [Member] | |||
Loss Contingencies [Line Items] | |||
Total purchases from manufacturing cooperatives | 148,511 | 149,878 | 144,511 |
Southeastern [Member] | |||
Loss Contingencies [Line Items] | |||
Total purchases from manufacturing cooperatives | $ 108,528 | $ 80,123 | $ 63,257 |
Commitments and Contingencie111
Commitments and Contingencies - Summary of Maximum Exposure under Guarantee (Detail) - SAC [Member] $ in Thousands | Dec. 31, 2017USD ($) | |
Loss Contingencies [Line Items] | ||
Maximum guaranteed debt | $ 23,938 | |
Equity investments | 7,325 | [1] |
Maximum total exposure, including equity investments | $ 31,263 | |
[1] | Recorded in other assets on the Company’s consolidated balance sheets using the equity method. |
Income Taxes - Significant Comp
Income Taxes - Significant Components of the Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Current: | |||
Federal | $ 12,978 | $ (6,920) | $ 20,107 |
State | 5,292 | 27 | 3,563 |
Total current provision (benefit) | 18,270 | (6,893) | 23,670 |
Deferred: | |||
Federal | (54,232) | 39,644 | 10,638 |
State | (3,879) | 3,298 | (230) |
Total deferred provision (benefit) | (58,111) | 42,942 | 10,408 |
Income tax expense (benefit) | $ (39,841) | $ 36,049 | $ 34,078 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Income Tax [Line Items] | ||||
Effective income tax rate | (63.20%) | 38.90% | 34.40% | |
Effective income tax rate with noncontrolling interest | (70.30%) | 41.80% | 36.60% | |
Federal corporate tax rate | 35.00% | 35.00% | 35.00% | |
Tax Cuts and Jobs Act of 2017, estimated impact one-time benefit within income tax expense (benefit) | $ 69,000,000 | |||
Tax Cuts and Jobs Act of 2017, benefit partially offset and increase to valuation allowance | 2,400,000 | |||
Tax Cuts and Jobs Act of 2017, change in tax rate income tax benefit net | 66,600,000 | |||
Uncertain tax positions | 2,400,000 | $ 2,900,000 | ||
Uncertain tax positions that would affect tax rate | 2,400,000 | 2,900,000 | ||
Change in uncertain tax positions, expected material impact on consolidated financial statements | 0 | |||
Valuation allowance for deferred tax assets | $ 4,337,000 | $ 1,618,000 | ||
Earliest Tax Year [Member] | Internal Revenue Service (IRS) [Member] | ||||
Income Tax [Line Items] | ||||
Tax year open for examination | 2,002 | |||
State and Local Jurisdiction [Member] | ||||
Income Tax [Line Items] | ||||
Federal net operating losses | $ 38,800,000 | |||
Net operating loss carryforwards expiration ending year | 2,036 | |||
State and Local Jurisdiction [Member] | Earliest Tax Year [Member] | ||||
Income Tax [Line Items] | ||||
Tax year open for examination | 1,998 | |||
Scenario Forecast [Member] | ||||
Income Tax [Line Items] | ||||
Federal corporate tax rate | 21.00% |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expense at Statutory Federal Rate to Actual Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Income Tax Disclosure [Abstract] | |||
Statutory expense | $ 22,052 | $ 32,449 | $ 34,692 |
Adjustment for federal tax legislation | (69,014) | ||
Meals and entertainment | 2,771 | 1,879 | 1,666 |
Valuation allowance change | 2,718 | (689) | (1,332) |
State income taxes, net of federal benefit | 2,029 | 3,243 | 3,496 |
Noncontrolling interest – Piedmont | (1,692) | (2,406) | (2,261) |
Adjustment for uncertain tax positions | (521) | (43) | 51 |
Adjustment for state tax legislation | (625) | (1,145) | |
Manufacturing deduction benefit | (56) | (1,330) | |
Bargain purchase gain | (704) | ||
Other, net | 1,816 | 2,297 | 945 |
Income tax expense (benefit) | $ (39,841) | $ 36,049 | $ 34,078 |
Statutory expense | 35.00% | 35.00% | 35.00% |
Adjustment for federal tax legislation | (109.50%) | ||
Meals and entertainment | 4.40% | 2.00% | 1.70% |
Valuation allowance change | 4.30% | (0.70%) | (1.30%) |
State income taxes, net of federal benefit | 3.20% | 3.50% | 3.50% |
Noncontrolling interest – Piedmont | (2.70%) | (2.60%) | (2.30%) |
Adjustment for uncertain tax positions | (0.80%) | 0.10% | |
Adjustment for state tax legislation | (0.70%) | (1.20%) | |
Manufacturing deduction benefit | (0.10%) | (1.30%) | |
Bargain purchase gain | (0.70%) | ||
Other, net | 2.90% | 2.50% | 0.90% |
Income tax expense (benefit) | (63.20%) | 38.90% | 34.40% |
Income Taxes - Reconciliatio115
Income Taxes - Reconciliation of Uncertain Tax Positions Excluding Accrued Interest (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Income Tax Disclosure [Abstract] | |||
Gross uncertain tax positions at the beginning of the year | $ 2,679 | $ 2,633 | $ 2,620 |
Increase as a result of tax positions taken in the current period | 966 | 687 | 547 |
Reduction as a result of the expiration of the applicable statute of limitations | (1,359) | (641) | (534) |
Gross uncertain tax positions at the end of the year | $ 2,286 | $ 2,679 | $ 2,633 |
Income Taxes - Temporary Differ
Income Taxes - Temporary Differences and Carryforwards that Comprised Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Income Tax Disclosure [Abstract] | ||
Acquisition related contingent consideration | $ 94,055 | $ 97,573 |
Deferred compensation | 27,097 | 44,185 |
Deferred revenue | 18,704 | |
Postretirement benefits | 16,443 | 32,656 |
Accrued liabilities | 15,523 | 21,666 |
Pension (nonunion) | 8,303 | 17,381 |
Transactional costs | 5,733 | 7,155 |
Capital lease agreements | 3,377 | 5,817 |
Charitable contribution carryover | 3,770 | 4,409 |
Pension (union) | 1,922 | 3,162 |
Net operating loss carryforwards | 1,923 | 2,148 |
Other | 1,669 | 111 |
Deferred income tax assets | 198,519 | 236,263 |
Less: Valuation allowance for deferred tax assets | 4,337 | 1,618 |
Net deferred income tax asset | 194,182 | 234,645 |
Intangible assets | (154,425) | (204,661) |
Depreciation | (105,685) | (134,872) |
Investment in Piedmont | (25,895) | (45,128) |
Inventory | (9,781) | (13,814) |
Prepaid expenses | (8,399) | (6,300) |
Patronage dividend | (2,361) | (4,724) |
Deferred income tax liabilities | (306,546) | (409,499) |
Net deferred income tax liability | $ (112,364) | $ (174,854) |
Accumulated Other Comprehens117
Accumulated Other Comprehensive Income (Loss) - Summary of Accumulated Other Comprehensive (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $ 363,024 | $ 322,432 | $ 256,943 |
Gains (Losses) During the Period, Pre-tax Activity | (13,015) | (18,929) | 9,112 |
Gains (Losses) During the Period, Tax Effect | 3,211 | 7,287 | (3,490) |
Reclassification to income, Pre-tax Activity | 11,687 | 1,874 | 3,061 |
Reclassification to income, Tax Effect | (3,188) | (722) | (1,176) |
Ending Balance | 458,907 | 363,024 | 322,432 |
Deep South and Somerset Exchange Business and the Florence and Laurel Distribution Business [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification to income, Pre-tax Activity | 8,257 | ||
Reclassification to income, Tax Effect | (2,037) | ||
Ending Balance | 6,220 | ||
Foreign Currency Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (11) | (5) | (1) |
Reclassification to income, Pre-tax Activity | 40 | (11) | (8) |
Reclassification to income, Tax Effect | (15) | 5 | 4 |
Ending Balance | 14 | (11) | (5) |
Accumulated Other Comprehensive Loss [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (92,897) | (82,407) | (89,914) |
Ending Balance | (94,202) | (92,897) | (82,407) |
Net Pension Activity [Member] | Actuarial Loss [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (72,393) | (68,243) | (74,867) |
Gains (Losses) During the Period, Pre-tax Activity | (11,219) | (9,777) | 7,513 |
Gains (Losses) During the Period, Tax Effect | 2,768 | 3,764 | (2,877) |
Reclassification to income, Pre-tax Activity | 3,402 | 3,031 | 3,230 |
Reclassification to income, Tax Effect | (1,176) | (1,168) | (1,242) |
Ending Balance | (78,618) | (72,393) | (68,243) |
Net Pension Activity [Member] | Prior Service Costs [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (61) | (78) | (99) |
Reclassification to income, Pre-tax Activity | 28 | 28 | 35 |
Reclassification to income, Tax Effect | (10) | (11) | (14) |
Ending Balance | (43) | (61) | (78) |
Net Postretirement Benefits Activity [Member] | Actuarial Loss [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (24,111) | (19,825) | (22,759) |
Gains (Losses) During the Period, Pre-tax Activity | (1,796) | (9,152) | 1,599 |
Gains (Losses) During the Period, Tax Effect | 443 | 3,523 | (613) |
Reclassification to income, Pre-tax Activity | 2,942 | 2,186 | 3,164 |
Reclassification to income, Tax Effect | (997) | (843) | (1,216) |
Ending Balance | (23,519) | (24,111) | (19,825) |
Net Postretirement Benefits Activity [Member] | Prior Service Costs [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 3,679 | 5,744 | 7,812 |
Reclassification to income, Pre-tax Activity | (2,982) | (3,360) | (3,360) |
Reclassification to income, Tax Effect | 1,047 | 1,295 | 1,292 |
Ending Balance | $ 1,744 | $ 3,679 | $ 5,744 |
Accumulated Other Comprehens118
Accumulated Other Comprehensive Income (Loss) - Summary of Impact of Accumulated Other Comprehensive Income (Loss) on Income Statement (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Jan. 01, 2017 | Oct. 02, 2016 | Jul. 03, 2016 | Apr. 03, 2016 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of sales | $ 2,782,721 | $ 1,940,706 | $ 1,405,426 | ||||||||
S,D&A expenses | 1,444,768 | 1,087,863 | 802,888 | ||||||||
Subtotal pre-tax | (63,006) | (92,712) | (99,122) | ||||||||
Income tax expense | (39,841) | 36,049 | 34,078 | ||||||||
Total after tax effect | $ (77,922) | $ (17,316) | $ (6,348) | $ 5,051 | $ (21,393) | $ (23,142) | $ (15,652) | $ 10,041 | (96,535) | (50,146) | (59,002) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of sales | 368 | 157 | 332 | ||||||||
S,D&A expenses | 3,062 | 1,717 | 2,729 | ||||||||
Subtotal pre-tax | 3,430 | 1,874 | 3,061 | ||||||||
Income tax expense | 1,151 | 722 | 1,176 | ||||||||
Total after tax effect | 2,279 | 1,152 | 1,885 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Foreign Currency Translation Adjustment [Member] | |||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
S,D&A expenses | 40 | (11) | (8) | ||||||||
Subtotal pre-tax | 40 | (11) | (8) | ||||||||
Income tax expense | 15 | (5) | (4) | ||||||||
Total after tax effect | 25 | (6) | (4) | ||||||||
Net Pension Activity [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of sales | 377 | 331 | 359 | ||||||||
S,D&A expenses | 3,053 | 2,728 | 2,906 | ||||||||
Subtotal pre-tax | 3,430 | 3,059 | 3,265 | ||||||||
Income tax expense | 1,186 | 1,179 | 1,256 | ||||||||
Total after tax effect | 2,244 | 1,880 | 2,009 | ||||||||
Net Postretirement Benefits Activity [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of sales | (9) | (174) | (27) | ||||||||
S,D&A expenses | (31) | (1,000) | (169) | ||||||||
Subtotal pre-tax | (40) | (1,174) | (196) | ||||||||
Income tax expense | (50) | (452) | (76) | ||||||||
Total after tax effect | $ 10 | $ (722) | $ (120) |
Capital Transactions - Summary
Capital Transactions - Summary of the Awards Each Year (Detail) - Class B Common Stock [Member] - shares | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Schedule of Capitalization, Equity [Line Items] | |||
Date of approval for award | Mar. 7, 2017 | Mar. 8, 2016 | Mar. 3, 2015 |
Fiscal year of service covered by award | 2,016 | 2,015 | 2,014 |
Shares settled in cash | 18,980 | 19,080 | 19,080 |
Class B common stock shares issued | 21,020 | 20,920 | 20,920 |
Total Class B Common Stock awarded | 40,000 | 40,000 | 40,000 |
Capital Transactions - Addition
Capital Transactions - Additional Information (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)VoteStock$ / shares | Jan. 01, 2017USD ($)$ / shares | Jan. 03, 2016USD ($)$ / shares | |
Schedule of Capitalization, Equity [Line Items] | |||
Number of classes of common stock outstanding | Stock | 2 | ||
Dividend is declared and paid on the Common Stock | $ / shares | $ 1 | $ 1 | $ 1 |
Payment of dividend | $ | $ 9,328 | $ 9,307 | $ 9,287 |
Number of votes per share | Vote | 1 | ||
Class B Common Stock [Member] | |||
Schedule of Capitalization, Equity [Line Items] | |||
Dividend is declared and paid on the Common Stock | $ / shares | $ 1 | $ 1 | $ 1 |
Number of votes per share | Vote | 20 |
Capital Transactions - Summa121
Capital Transactions - Summary of Compensation Expense for the Performance Unit Award Agreement (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Statement Of Stockholders Equity [Abstract] | |||
Stock compensation expense | $ 7,922 | $ 7,154 | $ 7,300 |
Share price for compensation expense | $ 215.26 | $ 178.85 | $ 182.51 |
Share price date for compensation expense | Dec. 29, 2017 | Dec. 30, 2016 | Dec. 31, 2015 |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)Benefit_PlanSecurity | Jan. 01, 2017USD ($) | Jan. 03, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | $ 303,900 | $ 273,100 | |
Weighted average asset allocation as per guidelines, minimum | 100.00% | ||
Defined benefit plan investment allocation | 100.00% | 100.00% | |
Debt securities comprised number of institutional bond | Security | 2 | ||
Weighted average duration of institutional bond | 3 years | ||
Weighted average expected long-term rate of return on plan assets | 6.00% | ||
Plan assets at fair value | $ 257,790 | $ 227,549 | |
Multi-employer plans status green zone minimum funded percentage | 80.00% | ||
Multi-employer plans listing in pension funds minimum contribution reckoning percent | 5.00% | ||
Multi-employer pension plan exit liability recorded | $ 7,700 | ||
Multi-employer pension plan exit annual payment amount | $ 1,000 | ||
Rehabilitation Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Multi-employer pension plan Rehabilitation Plan adoption effective date | Jan. 1, 2015 | ||
Collective bargaining agreement, effective date | Apr. 28, 2014 | ||
Employer-Teamsters and Pension Trust Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Multi-employer plans collective bargaining remainder of arrangements, expiration date | Jul. 26, 2018 | ||
Equity Securities [Member] | Fair Value Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | $ 700 | $ 700 | |
U.S. Large Capitalization Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocation as per guidelines, minimum | 40.00% | ||
Defined benefit plan investment allocation | 41.00% | 41.00% | |
Weighted average expected long-term rate of return on plan assets | 3.00% | ||
U.S. Small/Mid-Capitalization Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocation as per guidelines, minimum | 5.00% | ||
Defined benefit plan investment allocation | 5.00% | 5.00% | |
Weighted average expected long-term rate of return on plan assets | 0.50% | ||
International Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocation as per guidelines, minimum | 15.00% | ||
Defined benefit plan investment allocation | 15.00% | 15.00% | |
Weighted average expected long-term rate of return on plan assets | 1.20% | ||
Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocation as per guidelines, minimum | 40.00% | ||
Defined benefit plan investment allocation | 39.00% | 39.00% | |
Weighted average expected long-term rate of return on plan assets | 1.30% | ||
Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan investment allocation | 61.00% | ||
Minimum [Member] | Employer-Teamsters and Pension Trust Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Multi-employer plans collective bargaining arrangements, expiration date | Apr. 29, 2017 | ||
Minimum [Member] | U.S. Large Capitalization Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocation as per guidelines, minimum | 30.00% | ||
Minimum [Member] | U.S. Small/Mid-Capitalization Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocation as per guidelines, minimum | 0.00% | ||
Minimum [Member] | International Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocation as per guidelines, minimum | 0.00% | ||
Minimum [Member] | Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocation as per guidelines, minimum | 10.00% | ||
Maximum [Member] | Employer-Teamsters and Pension Trust Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Multi-employer plans collective bargaining arrangements, renewal expiration term | 2020-04 | ||
Maximum [Member] | U.S. Large Capitalization Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocation as per guidelines, minimum | 45.00% | ||
Maximum [Member] | U.S. Small/Mid-Capitalization Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocation as per guidelines, minimum | 20.00% | ||
Maximum [Member] | International Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocation as per guidelines, minimum | 10.00% | ||
Maximum [Member] | Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average asset allocation as per guidelines, minimum | 50.00% | ||
Executive Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of executive benefit plans | Benefit_Plan | 4 | ||
Supplemental Savings Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company contributions vesting period | 5 years | ||
Company maximum contribution percentage under plan | 50.00% | 50.00% | 50.00% |
Company actual contribution percentage under plan | 50.00% | 50.00% | 50.00% |
Participant contributions percentage under plan | 6.00% | 6.00% | 6.00% |
Long-Term Retention Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Vested percentage until age 50 under plan | 50.00% | ||
Age vesting percentage increases | 50 years | ||
Annual vested percentage increase under plan after age 50 | 5.00% | ||
Fully vested age | 60 years | ||
Annuity to eligible participants installment payment period one | 10 years | ||
Annuity to eligible participants installment payment period two | 15 years | ||
Annuity to eligible participants installment payment period three | 20 years | ||
Retention Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Vested percentage until age 50 under plan | 50.00% | ||
Age vesting percentage increases | 50 years | ||
Annual vested percentage increase under plan after age 50 | 5.00% | ||
Fully vested age | 60 years | ||
Annuity to eligible participants installment payment period one | 10 years | ||
Annuity to eligible participants installment payment period two | 15 years | ||
Annuity to eligible participants installment payment period three | 20 years | ||
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of company-sponsored pension plans | Benefit_Plan | 2 | ||
Benefit pension plan, contributions | $ 10,726 | ||
Weighted average expected long-term rate of return on plan assets | 6.00% | 6.50% | |
Plan assets at fair value | $ 258,513 | $ 228,256 | $ 214,055 |
Pension Plans [Member] | Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit pension plan, contributions | 10,000 | ||
Pension Plans [Member] | Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit pension plan, contributions | $ 20,000 | ||
Primary Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit pension plans, benefit obligation, discount rate | 3.80% | 4.44% | 4.72% |
Bargaining Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit pension plans, benefit obligation, discount rate | 3.90% | 4.49% | 4.72% |
401(k) Savings Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company maximum contribution percentage under plan | 5.00% | 5.00% | 5.00% |
Cost recognized | $ 18,400 | $ 14,900 | $ 10,700 |
Benefit Plans - Liability Under
Benefit Plans - Liability Under Executive Benefit Plans (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | $ 27,024 | $ 23,858 |
Supplemental Savings Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | 8,205 | 7,339 |
Noncurrent liabilities | 74,958 | 70,709 |
Total liability | 83,163 | 78,048 |
Long-Term Retention Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | 3 | 2 |
Noncurrent liabilities | 2,563 | 1,256 |
Total liability | 2,566 | 1,258 |
Retention Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | 2,949 | 3,359 |
Noncurrent liabilities | 42,694 | 44,480 |
Total liability | 45,643 | 47,839 |
Performance Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | 5,561 | 5,282 |
Noncurrent liabilities | 4,527 | 5,651 |
Total liability | $ 10,088 | $ 10,933 |
Benefit Plans - Changes in Proj
Benefit Plans - Changes in Projected Benefit Obligation (Detail) - Pension Plans [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation at beginning of year | $ 273,148 | $ 261,469 | |
Service cost | 2,553 | 461 | $ 116 |
Interest cost | 11,938 | 12,182 | 11,875 |
Actuarial loss | 27,388 | 8,268 | |
Benefits paid | (11,109) | (9,232) | |
Benefit obligation at end of year | $ 303,918 | $ 273,148 | $ 261,469 |
Benefit Plans - Change in Plan
Benefit Plans - Change in Plan Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Jan. 01, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year | $ 227,549 | |
Fair value of plan assets at end of year | 257,790 | $ 227,549 |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year | 228,256 | 214,055 |
Actual return on plan assets | 29,766 | 12,313 |
Employer contributions | 11,600 | 11,120 |
Benefits paid | (11,109) | (9,232) |
Fair value of plan assets at end of year | $ 258,513 | $ 228,256 |
Benefit Plans - Funded Status (
Benefit Plans - Funded Status (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | $ 257,790 | $ 227,549 | |
Noncurrent liabilities | 118,392 | 126,679 | |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | (303,918) | (273,148) | $ (261,469) |
Plan assets at fair value | 258,513 | 228,256 | 214,055 |
Net funded status | (45,405) | (44,892) | |
Noncurrent liabilities | 45,405 | 44,892 | |
Total liability - postretirement benefits | 45,405 | 44,892 | |
Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | (76,665) | (85,255) | (70,361) |
Plan assets at fair value | 0 | 0 | $ 0 |
Current liabilities | 3,678 | 3,468 | |
Noncurrent liabilities | 72,987 | 81,787 | |
Total liability - postretirement benefits | $ 76,665 | $ 85,255 |
Benefit Plans - Amounts Recogni
Benefit Plans - Amounts Recognized in the Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent liabilities | $ (118,392) | $ (126,679) |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent liabilities | (45,405) | (44,892) |
Total liability - pension plans | $ (45,405) | $ (44,892) |
Benefit Plans - Net Periodic Pe
Benefit Plans - Net Periodic Pension Cost (Benefit) (Detail) - Pension Plans [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 2,553 | $ 461 | $ 116 |
Interest cost | 11,938 | 12,182 | 11,875 |
Expected return on plan assets | (13,597) | (13,822) | (13,541) |
Recognized net actuarial loss | 3,402 | 3,031 | 3,230 |
Amortization of prior service cost | 28 | 28 | 35 |
Net periodic pension cost (benefit) | $ 4,324 | $ 1,880 | $ 1,715 |
Benefit Plans - Significant Ass
Benefit Plans - Significant Assumptions Used (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Net periodic pension cost for the fiscal year: | |||
Weighted average expected long-term rate of return on plan assets | 6.00% | ||
Primary Plan [Member] | |||
Projected benefit obligation at the measurement date: | |||
Discount rate | 3.80% | 4.44% | 4.72% |
Bargaining Plan [Member] | |||
Projected benefit obligation at the measurement date: | |||
Discount rate | 3.90% | 4.49% | 4.72% |
Postretirement Benefits [Member] | |||
Projected benefit obligation at the measurement date: | |||
Discount rate | 3.72% | 4.36% | 4.53% |
Net periodic pension cost for the fiscal year: | |||
Discount rate | 4.36% | 4.53% | 4.13% |
Pre Medicare [Member] | |||
Postretirement benefit expense - Pre-Medicare: | |||
Weighted average health care cost trend rate | 6.94% | 6.20% | 7.50% |
Trend rate graded down to ultimate rate | 4.50% | 4.50% | 5.00% |
Ultimate rate year | 2,025 | 2,024 | 2,021 |
Post Medicare [Member] | |||
Postretirement benefit expense - Pre-Medicare: | |||
Weighted average health care cost trend rate | 8.07% | 7.50% | 7.00% |
Trend rate graded down to ultimate rate | 4.50% | 4.50% | 5.00% |
Ultimate rate year | 2,025 | 2,024 | 2,021 |
Pension Plans [Member] | |||
Projected benefit obligation at the measurement date: | |||
Weighted average rate of compensation increase | 0.00% | 0.00% | 0.00% |
Net periodic pension cost for the fiscal year: | |||
Weighted average expected long-term rate of return on plan assets | 6.00% | 6.50% | 6.50% |
Weighted average rate of compensation increase | 0.00% | 0.00% | 0.00% |
Pension Plans [Member] | Primary Plan [Member] | |||
Projected benefit obligation at the measurement date: | |||
Discount rate | 3.80% | 4.44% | 4.72% |
Pension Plans [Member] | Bargaining Plan [Member] | |||
Projected benefit obligation at the measurement date: | |||
Discount rate | 3.90% | 4.49% | 4.72% |
Pension Plans [Member] | Primary Plan and Bargaining Plan [Member] | |||
Net periodic pension cost for the fiscal year: | |||
Discount rate | 4.44% | 4.72% | 4.32% |
Benefit Plans - Anticipated Fut
Benefit Plans - Anticipated Future Pension Benefit Payments (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 10,726 |
2,019 | 11,350 |
2,020 | 12,063 |
2,021 | 12,815 |
2,022 | 13,523 |
2023 – 2027 | 78,179 |
Postretirement Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 3,678 |
2,019 | 3,834 |
2,020 | 4,063 |
2,021 | 4,253 |
2,022 | 4,603 |
2023 – 2027 | $ 25,204 |
Benefit Plans - Expected Weight
Benefit Plans - Expected Weighted Average Long-Term Rate of Return (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Jan. 01, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation 2018 | 100.00% | |
Percentage of Plan Assets at Fiscal Year-End | 100.00% | 100.00% |
Weighted Average Expected Long-Term Rate of Return - 2017 | 6.00% | |
U.S. Large Capitalization Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation 2018 | 40.00% | |
Percentage of Plan Assets at Fiscal Year-End | 41.00% | 41.00% |
Weighted Average Expected Long-Term Rate of Return - 2017 | 3.00% | |
U.S. Small/Mid-Capitalization Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation 2018 | 5.00% | |
Percentage of Plan Assets at Fiscal Year-End | 5.00% | 5.00% |
Weighted Average Expected Long-Term Rate of Return - 2017 | 0.50% | |
International Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation 2018 | 15.00% | |
Percentage of Plan Assets at Fiscal Year-End | 15.00% | 15.00% |
Weighted Average Expected Long-Term Rate of Return - 2017 | 1.20% | |
Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation 2018 | 40.00% | |
Percentage of Plan Assets at Fiscal Year-End | 39.00% | 39.00% |
Weighted Average Expected Long-Term Rate of Return - 2017 | 1.30% |
Benefit Plans - Summary of Comm
Benefit Plans - Summary of Common/Collective Trust Fund Pension Plan Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total common/collective trust funds | $ 257,790 | $ 227,549 |
Common/Collective Trust Funds - Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total common/collective trust funds | 157,290 | 139,735 |
Common/Collective Trust Funds - Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total common/collective trust funds | $ 100,500 | $ 87,814 |
Benefit Plans - Reconciliation
Benefit Plans - Reconciliation of Benefit Obligation (Detail) - Postretirement Benefits [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation at beginning of year | $ 85,255 | $ 70,361 | |
Service cost | 2,232 | 1,567 | $ 1,118 |
Interest cost | 3,636 | 3,094 | 2,878 |
Acquisition of benefits | 3,291 | 3,458 | |
Plan participants’ contributions | 752 | 662 | |
Actuarial (gain)/loss | 1,796 | 9,152 | |
Benefits paid | (2,994) | (3,135) | |
Medicare Part D subsidy reimbursement | 37 | 96 | |
Divestiture of benefits related to the Deep South and Somerset Exchange Business and the Florence and Laurel Distribution Business | (17,340) | ||
Benefit obligation at end of year | $ 76,665 | $ 85,255 | $ 70,361 |
Benefit Plans - Reconciliati134
Benefit Plans - Reconciliation of Plan Assets Fair Value (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Jan. 01, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year | $ 227,549 | |
Fair value of plan assets at end of year | 257,790 | $ 227,549 |
Postretirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year | 0 | 0 |
Employer contributions | 2,205 | 2,377 |
Plan participants’ contributions | 752 | 662 |
Benefits paid | (2,994) | (3,135) |
Medicare Part D subsidy reimbursement | 37 | 96 |
Fair value of plan assets at end of year | $ 0 | $ 0 |
Benefit Plans - Components of N
Benefit Plans - Components of Net Periodic Postretirement Benefit Cost (Detail) - Postretirement Benefits [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 2,232 | $ 1,567 | $ 1,118 |
Interest cost | 3,636 | 3,094 | 2,878 |
Recognized net actuarial loss | 2,942 | 2,186 | 3,164 |
Amortization of prior service cost | (2,982) | (3,360) | (3,360) |
Net periodic pension cost (benefit) | $ 5,828 | $ 3,487 | $ 3,800 |
Benefit Plans - A 1% Increase o
Benefit Plans - A 1% Increase or Decrease in Annual Health Care Cost (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Compensation And Retirement Disclosure [Abstract] | |
Postretirement benefit obligation 1% Increase | $ 9,389 |
Postretirement benefit obligation 1% Decrease | (8,323) |
Service cost and interest cost 1% Increase | 668 |
Service cost and interest cost 1% Decrease | $ (593) |
Benefit Plans - Reconciliati137
Benefit Plans - Reconciliation of Amounts in Accumulated Other Comprehensive Loss That Have Not Yet Been Recognized as Components of Net Periodic Benefit Cost (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial gain (loss) | $ (13,015) |
Net periodic benefit cost, beginning balance | (154,125) |
Reclassification Adjustments, Net periodic benefit cost | 11,647 |
Net periodic benefit cost, ending balance | (155,493) |
Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial loss, beginning balance | (119,644) |
Actuarial gain (loss) | (11,219) |
Reclassification Adjustments, Actuarial loss | 3,402 |
Actuarial loss, ending balance | (127,461) |
Prior service (cost) credit, beginning balance | (101) |
Reclassification Adjustments, Prior service (cost) credit | 28 |
Prior service (cost) credit, ending balance | (73) |
Postretirement Medical [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial loss, beginning balance | (40,502) |
Actuarial gain (loss) | (1,796) |
Reclassification Adjustments, Actuarial loss | 2,942 |
Actuarial loss, ending balance | (39,356) |
Prior service (cost) credit, beginning balance | 6,122 |
Reclassification Adjustments, Prior service (cost) credit | (2,982) |
Prior service (cost) credit, ending balance | 3,140 |
Postretirement Medical [Member] | Deep South and Somerset Exchange Business and the Florence and Laurel Distribution Business [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Reclassification Adjustments, Recognized loss due to the divestiture | 8,257 |
Recognized loss due to the divestiture, ending balance | $ 8,257 |
Benefit Plans - Amounts in Accu
Benefit Plans - Amounts in Accumulated Other Comprehensive Loss Expected to be Recognized as Components of Net Periodic Pension Costs or Postretirement Benefits Costs in 2016 (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial loss | $ 4,919 |
Prior service cost (credit) | (1,709) |
Total expected to be recognized | 3,210 |
Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial loss | 3,681 |
Prior service cost (credit) | 25 |
Total expected to be recognized | 3,706 |
Postretirement Medical [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial loss | 1,238 |
Prior service cost (credit) | (1,734) |
Total expected to be recognized | $ (496) |
Benefit Plans - Multi-Employer
Benefit Plans - Multi-Employer Plans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Multiemployer Plans [Line Items] | |||
Pension trust fund, Contribution | $ 800 | $ 728 | $ 692 |
Employer-Teamsters and Pension Trust Fund [Member] | |||
Multiemployer Plans [Line Items] | |||
Pension Trust Fund | Red | Red | Red |
Pension trust fund FIP/RP Status pending/implemented | Implemented | Implemented | Implemented |
Pension trust fund, Surcharge imposed | Yes | Yes | Yes |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Apr. 02, 2017 | Sep. 27, 2015 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Related Party Transaction [Line Items] | |||||
Gain on sale of business | $ 22,651,000 | ||||
Payment of acquisition related contingent consideration | $ 16,738,000 | $ 13,550,000 | 4,039,000 | ||
Payment to The Coca-Cola Company | 15,598,000 | ||||
One time fee received pursuant to bottling agreement conversion | $ 91,450,000 | ||||
Amortization period as reduction to cost of sales | 40 years | ||||
Other accrued liabilities | $ 2,300,000 | ||||
Other Liabilities | 87,400,000 | ||||
One-time fee amortized | 1,800,000 | ||||
Legacy Facilities Credit (excluding portion related to Mobile, Alabama facility) | 30,647,000 | ||||
Accounts receivable from The Coca-Cola Company | 65,996,000 | 67,591,000 | |||
Capital contribution in CONA Services LLC | 3,615,000 | 7,875,000 | |||
Principal balance outstanding under capital lease | 43,500,000 | 48,700,000 | |||
Glaceau Distribution Termination Agreement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Payment to The Coca-Cola Company | $ 15,600,000 | ||||
CCR [Member] | |||||
Related Party Transaction [Line Items] | |||||
One time fee received pursuant to bottling agreement conversion | $ 91,500,000 | ||||
The Coca-Cola Company [Member] | |||||
Related Party Transaction [Line Items] | |||||
Percentage of interest held in outstanding common stock by The Coca-Cola Company | 35.00% | ||||
Voting power of stock held by related party | 5.00% | ||||
Gain on sale of business | $ 22,700 | ||||
Payment to The Coca-Cola Company | $ 15,598,000 | ||||
One time fee received pursuant to bottling agreement conversion | 91,450,000 | ||||
Legacy Facilities Credit (excluding portion related to Mobile, Alabama facility) | $ 30,647,000 | ||||
Harrison Family [Member] | |||||
Related Party Transaction [Line Items] | |||||
Voting power of stock held by related party | 86.00% | ||||
CCR [Member] | |||||
Related Party Transaction [Line Items] | |||||
Amortization period as reduction to cost of sales | 40 years | ||||
Legacy Facilities Credit (excluding portion related to Mobile, Alabama facility) | $ 43,000,000 | ||||
Proceeds from legacy facilities credit | 30,600,000 | ||||
Proceeds from legacy facilities credit current | 700,000 | ||||
CCR [Member] | Mobile, Alabama Facility [Member] | |||||
Related Party Transaction [Line Items] | |||||
Fee recognized from related party | 12,400,000 | ||||
CCR [Member] | Comprehensive Beverage Agreement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Contingent consideration liability | 381,300,000 | 253,400,000 | |||
Payment of acquisition related contingent consideration | 16,700,000 | 13,500,000 | 4,000,000 | ||
CCR [Member] | Tum-E Yummies [Member] | |||||
Related Party Transaction [Line Items] | |||||
Sales to related parties | 14,800,000 | ||||
Southeastern [Member] | Other Income [Member] | |||||
Related Party Transaction [Line Items] | |||||
Increase in investment | 6,000,000 | ||||
CCBSS [Member] | |||||
Related Party Transaction [Line Items] | |||||
Accounts receivable from The Coca-Cola Company | 11,200,000 | 7,400,000 | |||
Administrative fees due to CCBSS | 2,300,000 | 1,300,000 | 700,000 | ||
NPSG [Member] | |||||
Related Party Transaction [Line Items] | |||||
Operating costs | $ 1,100,000 | 400,000 | |||
CONA [Member] | |||||
Related Party Transaction [Line Items] | |||||
Percentage interest in subsidiary | 20.00% | ||||
Percentage required for approval of decision | 80.00% | ||||
Service fees | $ 12,600,000 | 7,500,000 | |||
HLP, SPC & Adjacent Sales Facility [Member] | |||||
Related Party Transaction [Line Items] | |||||
Lease expiration date | Dec. 31, 2020 | ||||
Principal balance outstanding under capital lease | $ 11,600,000 | 14,700,000 | |||
Rental payments related to the lease | $ 4,100,000 | 4,000,000 | $ 3,800,000 | ||
Beacon [Member] | |||||
Related Party Transaction [Line Items] | |||||
Lease expiration date | Dec. 31, 2021 | ||||
Principal balance outstanding under capital lease | $ 12,800,000 | $ 15,500,000 |
Related Party Transactions - Su
Related Party Transactions - Summary of Significant Transactions between Company and The Coca-Cola Company (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Related Party Transaction [Line Items] | |||
Glacéau distribution agreement consideration | $ 15,598 | ||
Conversion of bottling agreements | 91,450 | ||
Legacy Facilities Credit (excluding portion related to Mobile, Alabama facility) | 30,647 | ||
Portion of Legacy Facilities Credit related to Mobile, Alabama facility | 12,364 | ||
Cold drink equipment | 8,400 | ||
The Coca-Cola Company [Member] | |||
Related Party Transaction [Line Items] | |||
Concentrate, syrup, sweetener and other purchases | 1,085,898 | $ 669,783 | $ 482,673 |
Customer marketing programs | 139,542 | 116,537 | 70,754 |
Cold drink equipment parts | 25,381 | 21,558 | 16,260 |
Glacéau distribution agreement consideration | 15,598 | ||
Conversion of bottling agreements | 91,450 | ||
Marketing funding support payments | 83,177 | 73,513 | 56,284 |
Fountain delivery and equipment repair fees | 35,335 | 27,624 | 17,400 |
Legacy Facilities Credit (excluding portion related to Mobile, Alabama facility) | 30,647 | ||
Portion of Legacy Facilities Credit related to Mobile, Alabama facility | 12,364 | ||
Facilitating the distribution of certain brands and packages to other Coca-Cola bottlers | 10,474 | 7,193 | 4,670 |
Cold drink equipment | 8,400 | ||
Presence marketing funding support on the Company’s behalf | $ 4,843 | $ 2,064 | $ 2,415 |
Related Party Transactions -142
Related Party Transactions - Summarizes Purchases and Sales Arrangements between the Company and CCR (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Related Party Transaction [Line Items] | |||
Purchases from | $ 257,039 | $ 230,001 | $ 207,768 |
CCR [Member] | Transportation [Member] | |||
Related Party Transaction [Line Items] | |||
Sales to | 2,036 | 21,940 | 16,523 |
CCR [Member] | Production Agreement [Member] | |||
Related Party Transaction [Line Items] | |||
Purchases from | 114,891 | 269,575 | 229,954 |
Gross sales to | $ 76,718 | $ 72,568 | $ 30,500 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Asset Purchase and Asset Exchange Transactions for the Acquisition and Exchange of Expansion Territories and Facilities (Detail) - CCR [Member] | 12 Months Ended | ||||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | ||
Johnson City and Morristown Tennessee [Member] | |||||
Business Acquisition [Line Items] | |||||
Definitive Agreement Date | May 7, 2014 | ||||
Acquisition / Exchange Date | May 23, 2014 | ||||
Knoxville, Tennessee [Member] | |||||
Business Acquisition [Line Items] | |||||
Definitive Agreement Date | Aug. 28, 2014 | ||||
Acquisition / Exchange Date | Oct. 24, 2014 | ||||
Cleveland and Cookeville Tennessee [Member] | |||||
Business Acquisition [Line Items] | |||||
Definitive Agreement Date | Dec. 5, 2014 | ||||
Acquisition / Exchange Date | Jan. 30, 2015 | ||||
Louisville, Kentucky and Evansville, Indiana [Member] | |||||
Business Acquisition [Line Items] | |||||
Definitive Agreement Date | Dec. 17, 2014 | ||||
Acquisition / Exchange Date | Feb. 27, 2015 | ||||
Paducah and Pikeville, Kentucky [Member] | |||||
Business Acquisition [Line Items] | |||||
Definitive Agreement Date | Feb. 13, 2015 | ||||
Acquisition / Exchange Date | May 1, 2015 | ||||
Lexington, Kentucky for Jackson, Tennessee Exchange [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquisition / Exchange Date | May 1, 2015 | ||||
Norfolk, Fredericksburg and Staunton, Virginia and Elizabeth City, North Carolina [Member] | |||||
Business Acquisition [Line Items] | |||||
Definitive Agreement Date | Sep. 23, 2015 | ||||
Acquisition / Exchange Date | Oct. 30, 2015 | ||||
Easton and Salisbury, Maryland and Richmond and Yorktown, Virginia [Member] | |||||
Business Acquisition [Line Items] | |||||
Definitive Agreement Date | Sep. 23, 2015 | ||||
Acquisition / Exchange Date | Jan. 29, 2016 | ||||
Alexandria, Virginia and Capitol Heights and La Plata, Maryland [Member] | |||||
Business Acquisition [Line Items] | |||||
Definitive Agreement Date | Sep. 23, 2015 | ||||
Acquisition / Exchange Date | Apr. 1, 2016 | ||||
Baltimore Hagerstown and Cumberland, Maryland [Member] | |||||
Business Acquisition [Line Items] | |||||
Definitive Agreement Date | Sep. 23, 2015 | ||||
Acquisition / Exchange Date | Apr. 29, 2016 | ||||
Cincinnati, Dayton, Lima and Portsmouth, Ohio and Louisa, Kentucky [Member] | |||||
Business Acquisition [Line Items] | |||||
Definitive Agreement Date | [1] | Sep. 1, 2016 | |||
Acquisition / Exchange Date | Oct. 28, 2016 | ||||
Anderson Fort Wayne Lafayette South Bend And Terre Haute Indiana Acquisitions [Member] | |||||
Business Acquisition [Line Items] | |||||
Definitive Agreement Date | Sep. 1, 2016 | ||||
Acquisition / Exchange Date | Jan. 27, 2017 | ||||
Sandston, Virginia [Member] | |||||
Business Acquisition [Line Items] | |||||
Definitive Agreement Date | Oct. 30, 2015 | ||||
Acquisition / Exchange Date | Jan. 29, 2016 | ||||
Indianapolis and Bloomington, Indiana and Columbus and Mansfield, Ohio [Member] | |||||
Business Acquisition [Line Items] | |||||
Definitive Agreement Date | Sep. 1, 2016 | ||||
Acquisition / Exchange Date | Mar. 31, 2017 | ||||
Silver Spring and Baltimore, Maryland [Member] | |||||
Business Acquisition [Line Items] | |||||
Definitive Agreement Date | Oct. 30, 2015 | ||||
Acquisition / Exchange Date | Apr. 29, 2016 | ||||
Akron, Elyria, Toledo, Willoughby and Youngstown, Ohio [Member] | |||||
Business Acquisition [Line Items] | |||||
Definitive Agreement Date | Apr. 13, 2017 | ||||
Acquisition / Exchange Date | Apr. 28, 2017 | ||||
Cincinnati, Ohio [Member] | |||||
Business Acquisition [Line Items] | |||||
Definitive Agreement Date | Sep. 1, 2016 | ||||
Acquisition / Exchange Date | Oct. 28, 2016 | ||||
Memphis, Tennessee [Member] | |||||
Business Acquisition [Line Items] | |||||
Definitive Agreement Date | Sep. 29, 2017 | ||||
Acquisition / Exchange Date | Oct. 2, 2017 | ||||
Little Rock and West Memphis, Arkansas for Leroy, Mobile and Robertsdale, Alabama, Panama City, Florida, Bainbridge, Columbus and Sylvester, Georgia, Ocean Springs, Mississippi and Somerset, Kentucky Exchange Transaction [Member] | |||||
Business Acquisition [Line Items] | |||||
Definitive Agreement Date | Sep. 29, 2017 | ||||
Acquisition / Exchange Date | Oct. 2, 2017 | ||||
Annapolis, Maryland Make-Ready Center [Member] | |||||
Business Acquisition [Line Items] | |||||
Definitive Agreement Date | Oct. 30, 2015 | ||||
Acquisition / Exchange Date | Oct. 30, 2015 | ||||
Indianapolis and Portland, Indiana [Member] | |||||
Business Acquisition [Line Items] | |||||
Definitive Agreement Date | Sep. 1, 2016 | ||||
Acquisition / Exchange Date | Mar. 31, 2017 | ||||
Expansion Facilities Twinsburg, Ohio [Member] | |||||
Business Acquisition [Line Items] | |||||
Definitive Agreement Date | Apr. 13, 2017 | ||||
Acquisition / Exchange Date | Apr. 28, 2017 | ||||
Memphis, Tennessee and West Memphis, Arkansas for Mobile, Alabama Exchange Transaction [Member] | |||||
Business Acquisition [Line Items] | |||||
Definitive Agreement Date | Sep. 29, 2017 | ||||
Acquisition / Exchange Date | Oct. 2, 2017 | ||||
[1] | As amended by Amendment No. 1, dated January 27, 2017. |
Related Party Transactions - Mi
Related Party Transactions - Minimum Rentals and Contingent Rental Payments (Detail) - Beacon [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Related Party Transaction [Line Items] | |||
Minimum rentals | $ 3,509 | $ 3,526 | $ 3,540 |
Contingent rentals | 877 | 767 | 682 |
Total rental payments | $ 4,386 | $ 4,293 | $ 4,222 |
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 | 12 Months Ended | |||||||||
Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Jan. 01, 2017 | Oct. 02, 2016 | Jul. 03, 2016 | Apr. 03, 2016 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Numerator for basic and diluted net income per Common Stock and Class B Common Stock share: | |||||||||||
Net income attributable to Coca-Cola Bottling Co. Consolidated | $ 77,922 | $ 17,316 | $ 6,348 | $ (5,051) | $ 21,393 | $ 23,142 | $ 15,652 | $ (10,041) | $ 96,535 | $ 50,146 | $ 59,002 |
Less dividends: | |||||||||||
Dividends on Common Stock | 7,141 | 7,141 | 7,141 | ||||||||
Total undistributed earnings – basic | 87,207 | 40,839 | 49,715 | ||||||||
Total undistributed earnings - diluted | 87,207 | 40,839 | 49,715 | ||||||||
Numerator for basic net income per Common Stock share: | |||||||||||
Numerator for basic net income per Common Stock share | 73,895 | 38,469 | 45,364 | ||||||||
Numerator for diluted net income per Common Stock share: | |||||||||||
Numerator for diluted net income per Common Stock share | $ 96,535 | $ 50,146 | $ 59,002 | ||||||||
Denominator for basic net income per Common share: | |||||||||||
Weighted average number of Common Stock shares outstanding | 7,141 | 7,141 | 7,141 | ||||||||
Denominator for diluted net income per Common share: | |||||||||||
Weighted average number of Common Stock shares outstanding – assuming dilution | 9,369 | 9,349 | 9,328 | ||||||||
Basic net income per share: | |||||||||||
Common Stock | $ 8.35 | $ 1.86 | $ 0.68 | $ (0.54) | $ 2.31 | $ 2.48 | $ 1.68 | $ (1.08) | $ 10.35 | $ 5.39 | $ 6.35 |
Diluted net income per share: | |||||||||||
Common Stock | 8.31 | 1.85 | 0.68 | (0.54) | 2.30 | 2.47 | 1.67 | (1.08) | $ 10.30 | $ 5.36 | $ 6.33 |
Class B Common Stock [Member] | |||||||||||
Less dividends: | |||||||||||
Dividends on Common Stock | $ 2,187 | $ 2,166 | $ 2,146 | ||||||||
Total undistributed earnings – basic | 20,453 | 9,511 | 11,492 | ||||||||
Total undistributed earnings - diluted | 20,738 | 9,645 | 11,656 | ||||||||
Numerator for basic net income per Common Stock share: | |||||||||||
Numerator for basic net income per Common Stock share | 22,640 | 11,677 | 13,638 | ||||||||
Numerator for diluted net income per Common Stock share: | |||||||||||
Numerator for diluted net income per Common Stock share | $ 22,925 | $ 11,811 | $ 13,802 | ||||||||
Denominator for basic net income per Common share: | |||||||||||
Weighted average number of Common Stock shares outstanding | 2,188 | 2,168 | 2,147 | ||||||||
Denominator for diluted net income per Common share: | |||||||||||
Weighted average number of Common Stock shares outstanding – assuming dilution | 2,228 | 2,208 | 2,187 | ||||||||
Basic net income per share: | |||||||||||
Common Stock | 8.35 | 1.86 | 0.68 | (0.54) | 2.31 | 2.48 | 1.68 | (1.08) | $ 10.35 | $ 5.39 | $ 6.35 |
Diluted net income per share: | |||||||||||
Common Stock | $ 8.32 | $ 1.84 | $ 0.67 | $ (0.54) | $ 2.29 | $ 2.47 | $ 1.67 | $ (1.08) | $ 10.29 | $ 5.35 | $ 6.31 |
Common Stock [Member] | |||||||||||
Less dividends: | |||||||||||
Total undistributed earnings – basic | $ 66,754 | $ 31,328 | $ 38,223 | ||||||||
Total undistributed earnings - diluted | $ 66,469 | $ 31,194 | $ 38,059 |
Net Income Per Share - Compu146
Net Income Per Share - Computation of Basic Net Income Per Share and Diluted Net Income Per Share (Parenthetical) (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Earnings Per Share [Abstract] | |||
Percentage undistributed earnings allocated to common stock diluted | 100.00% | 100.00% | 100.00% |
Anti-dilutive shares | 0 | 0 | 0 |
Risks and Uncertainties - Addit
Risks and Uncertainties - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2017CustomerSupplierEntity | Jan. 01, 2017 | Jan. 03, 2016 | |
Concentration Risk [Line Items] | |||
Number of domestic supplier of aluminum cans | Supplier | 2 | ||
Number of entities in which reporting entity is shareholder and purchases all plastic bottles | Entity | 2 | ||
Coke Bottle Can Sales Volume Product [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage of related party products volume to customers | 93.00% | ||
Coke Bottle Can Sales Volume Product [Member] | Product Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 35.00% | 34.00% | 35.00% |
Coke Bottle Can Sales Volume Product [Member] | Product Concentration Risk [Member] | Future Consumption [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 65.00% | ||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 24.00% | 24.00% | 25.00% |
Number of customers other than major customers representing more than ten percent of sales | Customer | 0 | ||
Collective Bargaining Agreements [Member] | Labor Force Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 14.00% | ||
Collective Bargaining Agreements [Member] | Labor Force Concentration Risk [Member] | Minimum [Member] | |||
Concentration Risk [Line Items] | |||
Multi-employer plans collective bargaining arrangements, expiration term | 3 years | ||
Collective Bargaining Agreements [Member] | Labor Force Concentration Risk [Member] | Maximum [Member] | |||
Concentration Risk [Line Items] | |||
Multi-employer plans collective bargaining arrangements, expiration term | 5 years |
Risks and Uncertainties - Summa
Risks and Uncertainties - Summary of Percentage of Total Bottle/Can Sales Volume and Percentage Total Net Sales to Its Largest Customers (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Coke Bottle Can Sales Volume Product [Member] | Product Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 35.00% | 34.00% | 35.00% |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 24.00% | 24.00% | 25.00% |
Wal-Mart Stores, Inc. [Member] | Coke Bottle Can Sales Volume Product [Member] | Product Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 19.00% | 20.00% | 22.00% |
Wal-Mart Stores, Inc. [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 13.00% | 14.00% | 15.00% |
The Kroger Company [Member] | Coke Bottle Can Sales Volume Product [Member] | Product Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | 6.00% | 6.00% |
The Kroger Company [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 7.00% | 5.00% | 5.00% |
Food Lion, LLC [Member] | Coke Bottle Can Sales Volume Product [Member] | Product Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 6.00% | 8.00% | 7.00% |
Food Lion, LLC [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 4.00% | 5.00% | 5.00% |
Supplemental Disclosures of 149
Supplemental Disclosures of Cash Flow Information - Summary of Changes in Current Assets and Current Liabilities Affecting Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |||
Accounts receivable, trade, net | $ (121,203) | $ (83,204) | $ (62,542) |
Accounts receivable from The Coca-Cola Company | 3,272 | (31,231) | (5,258) |
Accounts receivable, other | (9,190) | (5,723) | (9,543) |
Inventories | 2,527 | (8,301) | (13,849) |
Prepaid expenses and other current assets | (22,870) | 2,277 | (6,264) |
Accounts payable, trade | 73,603 | 32,186 | 21,728 |
Accounts payable to The Coca-Cola Company | 33,757 | 39,842 | 26,769 |
Other accrued liabilities | 31,525 | 6,474 | 24,784 |
Accrued compensation | 7,351 | 7,613 | 6,087 |
Accrued interest payable | 1,487 | 158 | (174) |
Change in current assets less current liabilities (exclusive of acquisitions) | $ 259 | $ (39,909) | $ (18,262) |
Supplemental Disclosures of 150
Supplemental Disclosures of Cash Flow Information - Cash Payments (Refunds) During the Period for Interest and Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |||
Interest | $ 39,609 | $ 34,764 | $ 27,391 |
Income taxes | $ 30,965 | $ (7,111) | $ 31,782 |
Supplemental Disclosures of 151
Supplemental Disclosures of Cash Flow Information - Significant Noncash Investing and Financing Activities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Noncash Investing And Financing Activities [Line Items] | |||
Estimated fair value related to the divestiture of the Deep South and Somerset Exchange Business and the Florence and Laurel Distribution Business | $ 151,434 | ||
Additions to property, plant and equipment accrued and recorded in accounts payable, trade | 22,329 | $ 15,704 | $ 14,006 |
Gain on acquisition of Southeastern Container preferred shares in CCR redistribution | 6,012 | ||
Accounts receivable from The Coca-Cola Company for adjustments to the cash purchase price for the April 2017 Transactions | 4,707 | ||
Capital lease obligations incurred | 2,233 | 3,361 | |
Class B Common Stock [Member] | |||
Noncash Investing And Financing Activities [Line Items] | |||
Issuance of Class B Common Stock in connection with stock award | $ 3,669 | $ 3,726 | $ 2,225 |
Segments - Additional Informati
Segments - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017Segment | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 4 |
All Other [Member] | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 3 |
Segments - Summary of Financial
Segments - Summary of Financial Information by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Jan. 01, 2017 | Oct. 02, 2016 | Jul. 03, 2016 | Apr. 03, 2016 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Net Sales: | |||||||||||
Net sales | $ 1,126,149 | $ 1,162,526 | $ 1,169,291 | $ 865,702 | $ 841,560 | $ 849,028 | $ 840,384 | $ 625,456 | $ 4,323,668 | $ 3,156,428 | $ 2,306,458 |
Income from operations: | |||||||||||
Income from operations | 96,179 | 127,859 | 98,144 | ||||||||
Depreciation and Amortization: | |||||||||||
Depreciation and Amortization | 168,841 | 116,623 | 80,896 | ||||||||
Total Assets: | |||||||||||
Total Assets | 3,072,960 | 2,449,484 | 3,072,960 | 2,449,484 | |||||||
Operating Segments [Member] | Nonalcoholic Beverages [Member] | |||||||||||
Net Sales: | |||||||||||
Net sales | 4,243,007 | 3,060,937 | 2,245,836 | ||||||||
Income from operations: | |||||||||||
Income from operations | 84,775 | 123,230 | 92,921 | ||||||||
Depreciation and Amortization: | |||||||||||
Depreciation and Amortization | 160,524 | 109,716 | 76,127 | ||||||||
Total Assets: | |||||||||||
Total Assets | 2,958,521 | 2,349,284 | 2,958,521 | 2,349,284 | |||||||
Operating Segments [Member] | All Other [Member] | |||||||||||
Net Sales: | |||||||||||
Net sales | 301,801 | 234,732 | 160,191 | ||||||||
Income from operations: | |||||||||||
Income from operations | 11,404 | 4,629 | 5,223 | ||||||||
Depreciation and Amortization: | |||||||||||
Depreciation and Amortization | 8,317 | 6,907 | 4,769 | ||||||||
Total Assets: | |||||||||||
Total Assets | 119,894 | 105,785 | 119,894 | 105,785 | |||||||
Eliminations [Member] | |||||||||||
Net Sales: | |||||||||||
Net sales | (221,140) | (139,241) | $ (99,569) | ||||||||
Total Assets: | |||||||||||
Total Assets | $ (5,455) | $ (5,585) | $ (5,455) | $ (5,585) |
Segments - Net Sales by Product
Segments - Net Sales by Product Category (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Jan. 01, 2017 | Oct. 02, 2016 | Jul. 03, 2016 | Apr. 03, 2016 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Product Information [Line Items] | |||||||||||
Net sales | $ 1,126,149 | $ 1,162,526 | $ 1,169,291 | $ 865,702 | $ 841,560 | $ 849,028 | $ 840,384 | $ 625,456 | $ 4,323,668 | $ 3,156,428 | $ 2,306,458 |
Sparkling Beverages (Carbonated) [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Net sales | 2,285,621 | 1,764,558 | 1,323,712 | ||||||||
Still Beverages (Noncarbonated, Including Energy Products) [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Net sales | 1,325,969 | 892,125 | 577,872 | ||||||||
Bottle/Can Sales [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Net sales | 3,611,590 | 2,656,683 | 1,901,584 | ||||||||
Sales to Other Coca-Cola Bottlers [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Net sales | 383,065 | 238,182 | 178,777 | ||||||||
Post-Mix and Other [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Net sales | 329,013 | 261,563 | 226,097 | ||||||||
Other Sales [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Net sales | $ 712,078 | $ 499,745 | $ 404,874 |
Quarterly Financial Data (Un155
Quarterly Financial Data (Unaudited) - Schedule of Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Jan. 01, 2017 | Oct. 02, 2016 | Jul. 03, 2016 | Apr. 03, 2016 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Net sales | $ 1,126,149 | $ 1,162,526 | $ 1,169,291 | $ 865,702 | $ 841,560 | $ 849,028 | $ 840,384 | $ 625,456 | $ 4,323,668 | $ 3,156,428 | $ 2,306,458 |
Gross profit | 383,424 | 410,324 | 415,178 | 332,021 | 324,927 | 327,190 | 319,707 | 243,898 | 1,540,947 | 1,215,722 | 901,032 |
Net income (loss) attributable to Coca-Cola Bottling Co. Consolidated | $ 77,922 | $ 17,316 | $ 6,348 | $ (5,051) | $ 21,393 | $ 23,142 | $ 15,652 | $ (10,041) | $ 96,535 | $ 50,146 | $ 59,002 |
Common Stock | $ 8.35 | $ 1.86 | $ 0.68 | $ (0.54) | $ 2.31 | $ 2.48 | $ 1.68 | $ (1.08) | $ 10.35 | $ 5.39 | $ 6.35 |
Common Stock | 8.31 | 1.85 | 0.68 | (0.54) | 2.30 | 2.47 | 1.67 | (1.08) | 10.30 | 5.36 | 6.33 |
Class B Common Stock [Member] | |||||||||||
Common Stock | 8.35 | 1.86 | 0.68 | (0.54) | 2.31 | 2.48 | 1.68 | (1.08) | 10.35 | 5.39 | 6.35 |
Common Stock | $ 8.32 | $ 1.84 | $ 0.67 | $ (0.54) | $ 2.29 | $ 2.47 | $ 1.67 | $ (1.08) | $ 10.29 | $ 5.35 | $ 6.31 |
Quarterly Financial Data (Un156
Quarterly Financial Data (Unaudited) - Schedule of Quarterly Financial Data - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||||||
Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Jan. 01, 2017 | Oct. 02, 2016 | Jul. 03, 2016 | Apr. 03, 2016 | |
Tax Act Impact [Member] | ||||||||
Income net of tax | $ 66,595 | |||||||
Income per basic common share | $ 7.14 | |||||||
Commodity Hedging Program [Member] | ||||||||
Income/(expenses) per basic common shares | $ 0.03 | $ 0.22 | $ (0.08) | $ 0.02 | $ 0.04 | $ 0.03 | $ 0.18 | $ 0.07 |
Pre-tax total income/(expense) | $ 589 | $ 3,401 | $ (1,187) | $ 327 | $ 530 | $ 388 | $ 2,770 | $ 1,040 |
Income/(expenses) net of tax | 254 | 2,098 | (732) | 202 | 326 | 239 | 1,704 | 640 |
Amortization of Converted Distribution Rights [Member] | ||||||||
Pre-tax total expense | 2,330 | 2,760 | 2,760 | |||||
Expenses net of tax | $ 1,004 | $ 1,703 | $ 1,703 | |||||
Expenses per basic common shares | $ 0.11 | $ 0.18 | $ 0.18 | |||||
System Transformation Transactions Settlement Impact [Member] | ||||||||
Income/(expenses) per basic common shares | $ (0.11) | $ 0.61 | ||||||
Pre-tax total income/(expense) | $ (2,446) | $ 9,442 | ||||||
Income/(expenses) net of tax | (1,054) | 5,826 | ||||||
System Transformation Transactions Acquisitions Impact [Member] | ||||||||
Net sales impact | 536,070 | $ 478,272 | 472,649 | 264,906 | 219,780 | 174,420 | 162,819 | 35,311 |
Pre-tax income (loss) impact | (415) | 10,329 | 15,320 | 4,450 | 5,153 | 2,512 | 13,502 | 1,206 |
Net income (loss) impact | $ (179) | $ 6,373 | $ 9,452 | $ 2,746 | $ 3,169 | $ 1,545 | $ 8,304 | $ 742 |
Income/(expenses) per basic common shares | $ (0.02) | $ 0.68 | $ 1.02 | $ 0.29 | $ 0.34 | $ 0.17 | $ 0.89 | $ 0.08 |
System Transformation Transactions Divestitures Impact [Member] | ||||||||
Net sales impact | $ 68,929 | |||||||
Pre-tax income (loss) impact | 11,538 | |||||||
Net income (loss) impact | $ 7,096 | |||||||
Income/(expenses) per basic common shares | $ 0.76 | |||||||
Acquisition of Southeastern Container Preferred Shares from CCR impact [Member] | ||||||||
Pre-tax income (loss) impact | $ 6,012 | |||||||
Net income (loss) impact | $ 2,591 | |||||||
Income/(expenses) per basic common shares | $ 0.28 | |||||||
Portion of Legacy Facilities Credit Related to Mobile, Alabama Facility Impact [Member] | ||||||||
Pre-tax income (loss) impact | $ 12,364 | |||||||
Net income (loss) impact | $ 5,329 | |||||||
Income/(expenses) per basic common shares | $ 0.57 | |||||||
Special Charitable Contribution [Member] | ||||||||
Pre-tax total expense | $ 4,000 | |||||||
Expenses net of tax | $ 2,460 | |||||||
Expenses per basic common shares | $ 0.26 | |||||||
Expenses Related to System Transformation Transactions [Member] | ||||||||
Pre-tax total expense | $ 17,171 | $ 13,148 | $ 11,574 | $ 7,652 | $ 9,066 | $ 9,780 | $ 7,005 | $ 6,423 |
Expenses net of tax | $ 7,401 | $ 8,112 | $ 7,141 | $ 4,721 | $ 5,576 | $ 6,015 | $ 4,308 | $ 3,950 |
Expenses per basic common shares | $ 0.79 | $ 0.86 | $ 0.77 | $ 0.50 | $ 0.59 | $ 0.66 | $ 0.46 | $ 0.43 |
Exchange of Franchise Territories [Member] | ||||||||
Pre-tax income (loss) impact | $ 529 | |||||||
Net income (loss) impact | $ 228 | |||||||
Income/(expenses) per basic common shares | $ 0.02 | |||||||
Expenses per basic common shares | $ 0.05 | |||||||
Pre-tax total adjustment, reduction of gain | $ 692 | |||||||
Adjustment net of tax, reduction of gain | 426 | |||||||
Impact of Changes in Product Supply Governance [Member] | ||||||||
Pre-tax total expense | $ 2,591 | $ 1,614 | 1,105 | $ 2,213 | ||||
Expenses net of tax | $ 1,593 | $ 993 | $ 680 | $ 1,361 | ||||
Expenses per basic common shares | $ 0.17 | $ 0.11 | $ 0.07 | $ 0.15 | ||||
Business Acquisition Contingent Consideration [Member] | ||||||||
Income/(expenses) per basic common shares | $ 0.92 | $ 0.35 | $ (1.07) | $ (0.81) | $ 1.85 | $ 0.49 | $ (1.06) | $ (1.14) |
Pre-tax total income/(expense) | $ 19,914 | $ 5,225 | $ (16,119) | $ (12,246) | $ 27,970 | $ 7,365 | $ (16,274) | $ (17,151) |
Income/(expenses) net of tax | $ 8,583 | $ 3,224 | $ (9,945) | $ (7,556) | $ 17,202 | $ 4,530 | $ (10,009) | $ (10,548) |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts and Reserves (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | ||
Allowance for Doubtful Accounts [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of year | $ 4,448 | $ 2,117 | $ 1,330 | |
Additions charged to costs and expenses | 4,464 | 2,534 | 1,234 | |
Deductions | 1,306 | 203 | 447 | |
Balance at end of year | 7,606 | 4,448 | 2,117 | |
Deferred Income Tax Valuation Allowance [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of year | 1,618 | 2,307 | 3,640 | |
Adjustment for federal tax legislation | [1] | 2,419 | ||
Additions charged to costs and expenses | 877 | 28 | ||
Deductions credited to expense | 577 | 689 | 1,361 | |
Balance at end of year | $ 4,337 | $ 1,618 | $ 2,307 | |
[1] | (1) The recorded impact of the Tax Act is estimated and any final amount may differ, possibly materially, due to changes in estimates, interpretations and assumptions, changes in IRS interpretations, issuance of new guidance, legislative actions, changes in accounting standards or related interpretation in response to the Tax Act and future actions by states within the U.S. |