Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 28, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | COKE | |
Entity Registrant Name | Coca-Cola Consolidated, Inc. | |
Entity Central Index Key | 0000317540 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-29 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity File Number | 0-9286 | |
Entity Tax Identification Number | 560950585 | |
Entity Address, Address Line One | 4100 Coca‑Cola Plaza | |
Entity Address, City or Town | Charlotte | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 28211 | |
City Area Code | (704) | |
Local Phone Number | 557-4400 | |
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 | 2,232,242 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Net sales | $ 1,273,659 | $ 1,220,003 | $ 2,376,571 | $ 2,284,760 |
Cost of sales | 837,880 | 815,295 | 1,551,484 | 1,522,411 |
Gross profit | 435,779 | 404,708 | 825,087 | 762,349 |
Selling, delivery and administrative expenses | 368,565 | 385,029 | 737,719 | 761,667 |
Income from operations | 67,214 | 19,679 | 87,368 | 682 |
Interest expense, net | 11,995 | 12,744 | 24,881 | 24,790 |
Other expense, net | 31,181 | 9,818 | 47,032 | 5,308 |
Income (loss) before income taxes | 24,038 | (2,883) | 15,455 | (29,416) |
Income tax expense (benefit) | 7,182 | (135) | 4,177 | (13,106) |
Net income (loss) | 16,856 | (2,748) | 11,278 | (16,310) |
Less: Net income attributable to noncontrolling interest | 1,486 | 1,185 | 2,739 | 1,808 |
Net income (loss) attributable to Coca-Cola Consolidated, Inc. | $ 15,370 | $ (3,933) | $ 8,539 | $ (18,118) |
Basic net income (loss) per share based on net loss attributable to Coca-Cola Consolidated, Inc.: | ||||
Common Stock | $ 1.64 | $ (0.42) | $ 0.91 | $ (1.94) |
Weighted average number of Common Stock shares outstanding | 7,141 | 7,141 | 7,141 | 7,141 |
Diluted net income (loss) per share based on net loss attributable to Coca-Cola Consolidated, Inc.: | ||||
Common Stock | $ 1.64 | $ (0.42) | $ 0.91 | $ (1.94) |
Weighted average number of Common Stock shares outstanding – assuming dilution | 9,421 | 9,354 | 9,415 | 9,347 |
Cash dividends per share: | ||||
Cash dividend per share | $ 0.25 | $ 0.25 | $ 0.50 | $ 0.50 |
Class B Common Stock [Member] | ||||
Basic net income (loss) per share based on net loss attributable to Coca-Cola Consolidated, Inc.: | ||||
Common Stock | $ 1.64 | $ (0.42) | $ 0.91 | $ (1.94) |
Weighted average number of Common Stock shares outstanding | 2,232 | 2,213 | 2,225 | 2,206 |
Diluted net income (loss) per share based on net loss attributable to Coca-Cola Consolidated, Inc.: | ||||
Common Stock | $ 1.63 | $ (0.42) | $ 0.90 | $ (1.94) |
Weighted average number of Common Stock shares outstanding – assuming dilution | 2,280 | 2,213 | 2,274 | 2,206 |
Cash dividends per share: | ||||
Cash dividend per share | $ 0.25 | $ 0.25 | $ 0.50 | $ 0.50 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 16,856 | $ (2,748) | $ 11,278 | $ (16,310) |
Defined benefit plans reclassification including pension costs: | ||||
Actuarial gains | 679 | 703 | 1,358 | 1,406 |
Prior service benefits | 5 | 5 | 9 | 9 |
Postretirement benefits reclassification included in benefits costs: | ||||
Actuarial gains | 147 | 375 | 295 | 752 |
Prior service costs | (243) | (348) | (487) | (696) |
Foreign currency translation adjustment | 5 | (9) | (4) | (6) |
Other comprehensive income, net of tax | 593 | 726 | 1,171 | 1,465 |
Comprehensive income (loss) | 17,449 | (2,022) | 12,449 | (14,845) |
Less: Comprehensive income attributable to noncontrolling interest | 1,486 | 1,185 | 2,739 | 1,808 |
Comprehensive income (loss) attributable to Coca-Cola Consolidated, Inc. | $ 15,963 | $ (3,207) | $ 9,710 | $ (16,653) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 30, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 5,692 | $ 13,548 |
Accounts receivable, trade | 460,911 | 436,890 |
Allowance for doubtful accounts | (12,788) | (9,141) |
Accounts receivable from The Coca-Cola Company | 68,188 | 44,915 |
Accounts receivable, other | 38,692 | 30,493 |
Inventories | 230,898 | 210,033 |
Prepaid expenses and other current assets | 72,327 | 70,680 |
Total current assets | 863,920 | 797,418 |
Property, plant and equipment, net | 962,402 | 990,532 |
Right of use assets - operating leases | 102,151 | |
Leased property under financing or capital leases, net | 20,944 | 23,720 |
Other assets | 113,033 | 115,490 |
Goodwill | 165,903 | 165,903 |
Total assets | 3,132,153 | 3,009,928 |
Current Liabilities: | ||
Current portion of obligations under operating leases | 14,771 | |
Current portion of obligations under financing or capital leases | 9,019 | 8,617 |
Accounts payable, trade | 181,418 | 152,040 |
Accounts payable to The Coca-Cola Company | 135,998 | 112,425 |
Other accrued liabilities | 197,101 | 250,246 |
Accrued compensation | 59,329 | 72,316 |
Accrued interest payable | 4,316 | 6,093 |
Total current liabilities | 601,952 | 601,737 |
Deferred income taxes | 131,498 | 127,174 |
Pension and postretirement benefit obligations | 87,300 | 85,682 |
Other liabilities | 641,556 | 609,135 |
Noncurrent portion of obligations under operating leases | 87,804 | |
Noncurrent portion of obligations under financing or capital leases | 22,182 | 26,631 |
Long-term debt | 1,092,152 | 1,104,403 |
Total liabilities | 2,664,444 | 2,554,762 |
Commitments and Contingencies | ||
Equity: | ||
Capital in excess of par value | 128,983 | 124,228 |
Retained earnings | 383,012 | 359,435 |
Accumulated other comprehensive loss | (95,814) | (77,265) |
Treasury stock, at cost: | ||
Total equity of Coca-Cola Consolidated, Inc. | 367,991 | 358,187 |
Noncontrolling interest | 99,718 | 96,979 |
Total equity | 467,709 | 455,166 |
Total liabilities and equity | 3,132,153 | 3,009,928 |
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 | 2,860 | 2,839 |
Treasury stock, at cost: | ||
Treasury stock | (409) | (409) |
Distribution Agreements [Member] | ||
Current Assets: | ||
Other identifiable intangible assets, net | 888,238 | 900,383 |
Customer Lists and Other Identifiable Intangible Assets [Member] | ||
Current Assets: | ||
Other identifiable intangible assets, net | $ 15,562 | $ 16,482 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 30, 2018 |
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 | 2,860,356 | 2,841,132 |
Treasury stock, shares | 628,114 | 628,114 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jul. 01, 2018 | |
Cash Flows from Operating Activities: | ||
Net income (loss) | $ 11,278 | $ (16,310) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation expense from property, plant and equipment and financing or capital leases | 79,316 | 82,658 |
Fair value adjustment of acquisition related contingent consideration | 43,268 | 3,957 |
Amortization of intangible assets and deferred proceeds, net | 11,512 | 11,249 |
Deferred income taxes | 4,324 | (16,286) |
Loss on sale of property, plant and equipment | 4,017 | 4,295 |
Stock compensation expense | 2,045 | 1,728 |
Impairment of property, plant and equipment | 1,155 | |
Amortization of debt costs | 752 | 730 |
Change in current assets less current liabilities | (78,842) | (16,127) |
Change in other noncurrent assets | 5,228 | 3,830 |
Change in other noncurrent liabilities | 4,071 | (2,493) |
Other | 462 | 11 |
Total adjustments | 77,308 | 73,552 |
Net cash provided by operating activities | 88,586 | 57,242 |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment (exclusive of acquisitions) | (57,581) | (85,279) |
Other distribution agreements | (4,654) | |
Proceeds from the sale of property, plant and equipment | 823 | 3,047 |
Investment in CONA Services LLC | (486) | (2,020) |
Acquisition of distribution territories and regional manufacturing facilities, net of cash acquired and purchase price settlements | 4,706 | |
Proceeds from cold drink equipment | 3,789 | |
Net cash used in investing activities | (61,898) | (75,757) |
Cash Flows from Financing Activities: | ||
Borrowings under revolving credit facility | 206,339 | 190,000 |
Payments on revolving credit facility | (186,339) | (297,000) |
Proceeds from issuance of senior notes | 100,000 | 150,000 |
Payments on term loan facility and senior notes | (132,500) | |
Payments of acquisition related contingent consideration | (12,836) | (11,263) |
Cash dividends paid | (4,682) | (4,671) |
Payments on financing or capital lease obligations | (4,261) | (4,194) |
Debt issuance fees | (265) | (1,535) |
Net cash provided by (used in) financing activities | (34,544) | 21,337 |
Net increase (decrease) in cash | (7,856) | 2,822 |
Cash at beginning of period | 13,548 | 16,902 |
Cash at end of period | 5,692 | 19,724 |
Significant noncash investing and financing activities: | ||
Right of use assets obtained in exchange for lease obligations | 21,220 | |
Additions to property, plant and equipment accrued and recorded in accounts payable, trade | 10,292 | 4,178 |
Class B Common Stock [Member] | ||
Significant noncash investing and financing activities: | ||
Issuance of Class B Common Stock in connection with stock award | $ 4,776 | $ 3,831 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Equity (Unaudited) - 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 Consolidated, Inc. [Member] | Total Equity of Coca-Cola Consolidated, Inc. [Member]Class B Common Stock [Member] | Non-controlling Interest [Member] |
Beginning Balance at Dec. 31, 2017 | $ 458,907 | $ 10,204 | $ 2,819 | $ 120,417 | $ 388,718 | $ (94,202) | $ (60,845) | $ (409) | $ 366,702 | $ 92,205 | |||
Net income (loss) | (16,310) | (18,118) | (18,118) | 1,808 | |||||||||
Other comprehensive income, net of tax | 1,465 | 1,465 | 1,465 | ||||||||||
Cash dividends paid Common Stock ($0.50 per share) | (3,570) | $ (1,101) | (3,570) | $ (1,101) | (3,570) | $ (1,101) | |||||||
Issuance of shares of Class B Common Stock | 3,831 | 20 | 3,811 | 3,831 | |||||||||
Ending Balance at Jul. 01, 2018 | 443,222 | 10,204 | 2,839 | 124,228 | 365,929 | (92,737) | (60,845) | (409) | 349,209 | 94,013 | |||
Beginning Balance at Apr. 01, 2018 | (93,463) | ||||||||||||
Net income (loss) | (2,748) | ||||||||||||
Other comprehensive income, net of tax | 726 | ||||||||||||
Cash dividends paid Common Stock ($0.50 per share) | (1,785) | (553) | |||||||||||
Ending Balance at Jul. 01, 2018 | 443,222 | 10,204 | 2,839 | 124,228 | 365,929 | (92,737) | (60,845) | (409) | 349,209 | 94,013 | |||
Beginning Balance at Dec. 30, 2018 | 455,166 | 10,204 | 2,839 | 124,228 | 359,435 | (77,265) | (60,845) | (409) | 358,187 | 96,979 | |||
Net income (loss) | 11,278 | 8,539 | 8,539 | 2,739 | |||||||||
Other comprehensive income, net of tax | 1,171 | 1,171 | 1,171 | ||||||||||
Cash dividends paid Common Stock ($0.50 per share) | (3,570) | (1,112) | (3,570) | $ (1,112) | (3,570) | $ (1,112) | |||||||
Issuance of shares of Class B Common Stock | 4,776 | 21 | 4,755 | 4,776 | |||||||||
Reclassification of stranded tax effects | 19,720 | (19,720) | |||||||||||
Ending Balance at Jun. 30, 2019 | 467,709 | 10,204 | 2,860 | 128,983 | 383,012 | (95,814) | (60,845) | (409) | 367,991 | 99,718 | |||
Beginning Balance at Mar. 31, 2019 | (96,407) | ||||||||||||
Net income (loss) | 16,856 | ||||||||||||
Other comprehensive income, net of tax | 593 | ||||||||||||
Cash dividends paid Common Stock ($0.50 per share) | (1,785) | $ (558) | |||||||||||
Ending Balance at Jun. 30, 2019 | $ 467,709 | $ 10,204 | $ 2,860 | $ 128,983 | $ 383,012 | $ (95,814) | $ (60,845) | $ (409) | $ 367,991 | $ 99,718 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Cash dividend per share | $ 0.25 | $ 0.25 | $ 0.50 | $ 0.50 |
Class B Common Stock [Member] | ||||
Cash dividend per share | $ 0.25 | $ 0.25 | $ 0.50 | $ 0.50 |
Class B common stock shares issued | 19,224 | 20,296 |
Significant Accounting Policies
Significant Accounting Policies and New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and New Accounting Pronouncements | 1. Significant Accounting Policies and New Accounting Pronouncements The condensed consolidated financial statements include the accounts of Coca‑Cola Consolidated, Inc. and its majority-owned subsidiaries (the “Company”). All significant intercompany accounts and transactions have been eliminated. The condensed consolidated financial statements reflect all adjustments, including normal, recurring accruals, which, in the opinion of management, are necessary for a fair statement of the results for the interim periods presented: • The financial position as of June 30, 2019 and December 30, 2018. • The results of operations and comprehensive income for the 13 week periods ended June 30, 2019 (the “second quarter” of fiscal 2019 (“2019”)) and July 1, 2018 (the “second quarter” of fiscal 2018 (“2018”)), and the 26 week periods ended June 30, 2019 (the “first half” of 2019) and July 1, 2018 (the “first half” of 2018). • The changes in cash flows and equity for the first half of 2019 and the first half of 2018. The condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial reporting and the instructions to Form 10-Q and Article 10 of Regulation S-X. The accounting policies followed in the presentation of interim financial results are consistent with those followed on an annual basis. These policies are presented in Note 1 to the consolidated financial statements included in the Company’s Annual Report on Form 10‑K for 2018 filed with the Securities and Exchange Commission. The preparation of condensed consolidated financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and 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. Significant Accounting Policies In the ordinary course of business, the Company has made a number of estimates and assumptions relating to the reporting of results of operations and financial position in the preparation of its condensed consolidated financial statements in conformity with GAAP. Actual results could differ significantly from those estimates under different assumptions and conditions. The Company included in its Annual Report on Form 10‑K for 2018 under the caption “Discussion of Critical Accounting Policies, Estimates and New Accounting Pronouncements” in Part II, “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations,” a discussion of the Company’s most critical accounting policies, which are those the Company believes to be the most important to the portrayal of its financial condition and results of operations and require management’s most difficult, subjective and complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Any changes in critical accounting policies and estimates are discussed with the Audit Committee of the Board of Directors of the Company during the quarter in which a change is contemplated and prior to making such change. Recently Adopted Accounting Pronouncements In February 2018, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2018‑02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which provides the option to reclassify stranded tax effects resulting from the Tax Cuts and Jobs Act (the “Tax Act”) from accumulated other comprehensive income to retained earnings. This standard is required to be applied either in the period of adoption or retrospectively to each period in which the changes in the U.S. federal corporate income tax rate pursuant to the Tax Act are recognized. The new guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and can be early adopted. The Company adopted ASU 2018‑02 in the first quarter of 2019 and recognized a cumulative effect adjustment to the opening balance of retained earnings in 2019. The cumulative effect adjustment increased retained earnings by $19.7 million. In February 2016, the FASB issued ASU 2016-02, “Leases,” (the “lease standard”). The lease standard 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 adopted the new accounting standard during the first quarter of 2019 using the optional transition method. See Note 9 to the condensed consolidated financial statements for additional information on the Company’s adoption of the lease standard. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 2. 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 formulas under which the primary components of its soft drink products, either concentrate or syrup, are manufactured. As of June 30, 2019, The Coca‑Cola Company owned approximately 27% of the Company’s total outstanding Common Stock and Class B Common Stock on a consolidated basis, representing approximately 5% of the total voting power of the Company’s Common Stock and Class B Common Stock voting together. As long as The Coca‑Cola Company holds the number of shares of Common Stock it currently owns, it has the right to have its designee proposed by the Company for nomination to the Company’s Board of Directors, and J. Frank Harrison, III, the Chairman of the Board 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 combined Common Stock and Class B Common Stock, in favor of such designee. The Coca‑Cola Company does not own any shares of the Company’s Class B Common Stock. The following table summarizes the significant transactions between the Company and The Coca‑Cola Company: Second Quarter First Half (in thousands) 2019 2018 2019 2018 Payments made by the Company to The Coca-Cola Company for: Concentrate, syrup, sweetener and other purchases $ 344,841 $ 328,689 $ 611,484 $ 571,157 Customer marketing programs 39,221 41,475 72,513 76,057 Cold drink equipment parts 7,067 8,089 14,049 14,230 Payments made by The Coca-Cola Company to the Company for: Marketing funding support payments $ 26,311 $ 22,656 $ 49,023 $ 42,693 Fountain delivery and equipment repair fees 9,885 10,353 20,634 19,700 Presence marketing funding support on the Company’s behalf 4,502 4,614 4,937 5,095 Facilitating the distribution of certain brands and packages to other Coca-Cola bottlers 1,351 4,256 2,350 8,124 Cold drink equipment - 3,789 - 3,789 As part of The Coca‑Cola Company’s plans to refranchise its North American bottling territories, the Company completed 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 us, to significantly expand our distribution and manufacturing operations (the “System Transformation”). The System Transformation included the acquisition and exchange of rights to serve distribution territories and related distribution assets, as well as the acquisition and exchange of regional manufacturing facilities and related manufacturing assets. In 2017, The Coca‑Cola Company agreed to provide the Company a fee to compensate the Company for the net economic impact of changes made by The Coca‑Cola Company to the authorized pricing on sales of covered beverages produced at certain manufacturing facilities owned by Company (the “Legacy Facilities Credit”). The Company immediately recognized the portion of the Legacy Facilities Credit applicable to a regional manufacturing facility divested in 2017 and the remaining balance of the Legacy Facilities Credit will be amortized as a reduction to cost of sales over a period of 40 years. The portion of the deferred liability that is expected to be amortized in the next twelve months is classified as current. Coca‑Cola Refreshments USA, Inc. The Company, The Coca-Cola Company and CCR entered into a comprehensive beverage agreement on March 31, 2017 (as amended, the “CBA”). Pursuant to the CBA, the Company is required to make quarterly sub-bottling payments 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 distribution territories the Company acquired from CCR as part of the System Transformation, excluding territories the Company acquired in an exchange transaction. These sub-bottling payments are 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. Sub-bottling payments to CCR were $12.8 million during the first half of 2019 and $11.3 million during the first half of 2018. The following table summarizes the liability recorded by the Company to reflect the estimated fair value of contingent consideration related to future sub‑bottling payments to CCR: (in thousands) June 30, 2019 December 30, 2018 Current portion of acquisition related contingent consideration $ 32,131 $ 32,993 Noncurrent portion of acquisition related contingent consideration 380,319 349,905 Total acquisition related contingent consideration $ 412,450 $ 382,898 Upon the conversion of the Company’s then-existing bottling agreements in 2017 pursuant to the CBA, the Company received a fee from CCR (the “Territory Conversion Fee”). The Territory Conversion Fee was recorded as a deferred liability and will be amortized as a reduction to cost of sales over a period of 40 years. The portion of the deferred liability that is expected to be amortized in the next twelve months is classified as current. Southeastern Container (“Southeastern”) The Company is a shareholder of Southeastern, a plastic bottle manufacturing cooperative. The Company accounts for Southeastern as an equity method investment. The Company’s investment in Southeastern, which was classified as other assets in the condensed consolidated balance sheets, South Atlantic Canners, Inc. (“SAC”) The Company is a shareholder of SAC, a manufacturing cooperative in Bishopville, South Carolina. All of SAC’s shareholders are Coca‑Cola bottlers and each has equal voting rights. other assets in the condensed consolidated balance sheets, 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 $4.5 million in the first half of 2019 and $4.6 million in the first half of 2018. Coca‑Cola Bottlers’ Sales and Services Company, LLC (“CCBSS”) Along with other Coca‑Cola bottlers in the United States and Canada, the Company is a member of CCBSS, a company formed to provide certain procurement and other services with the intention of enhancing the efficiency and competitiveness of the Coca‑Cola bottling system. The Company accounts for CCBSS as an equity method investment and its investment in CCBSS is not material. CCBSS negotiates the procurement for the majority of the Company’s raw materials, excluding concentrate, and the Company receives a rebate from CCBSS for the purchase of these raw materials. The Company had rebates due from CCBSS of $7.3 million on June 30, 2019 and $10.4 million on December 30, 2018, which were classified as accounts receivable, other in the condensed consolidated balance sheets In addition, the Company pays an administrative fee to CCBSS for its services. The Company incurred administrative fees to CCBSS of $1.0 million in the first half of 2019 and $1.5 million in the first half of 2018, which were classified as selling, delivery and administrative (“ SD&A”) expenses in the condensed consolidated statements of operations CONA Services LLC (“CONA”) The Company is a member of CONA, an entity formed with The Coca‑Cola Company and certain other Coca‑Cola bottlers to provide business process and information technology services to its members. The Company accounts for CONA as an equity method investment. The Company’s investment in CONA, which was classified as other assets in the condensed consolidated balance sheets, Pursuant to an amended and restated master services agreement with CONA, the Company is authorized to use the Coke One North America system (the “CONA System”), a uniform information technology system developed to promote operational efficiency and uniformity among North American Coca‑Cola bottlers. In exchange for the Company’s rights to use the CONA System and receive CONA-related services, it is charged service fees by CONA. The Company incurred CONA service fees of $11.5 million in the first half of 2019 and $10.2 million in the first half of 2018. Related Party Leases The Company leases its headquarters office facility and an adjacent office facility in Charlotte, North Carolina from Beacon Investment Corporation, of which J. Frank Harrison, III, Chairman of the Board of Directors and Chief Executive Officer of the Company, is the majority stockholder and Morgan H. Everett, Senior Vice President and a director of the Company, is a minority stockholder. The annual base rent the Company is obligated to pay under this lease agreement is subject to adjustment for increases in the Consumer Price Index and the lease expires on December 31, 2021. The principal balance outstanding under this lease was $8.4 million on June 30, 2019 and $9.9 million on December 30, 2018. The Company leases the Snyder Production Center and an adjacent sales facility in Charlotte, North Carolina from Harrison Limited Partnership One, which is directly and indirectly owned by trusts of which J. Frank Harrison, III, and Sue Anne H. Wells, a director of the Company, are trustees and beneficiaries and of which Morgan H. Everett is a permissible, discretionary beneficiary. The annual base rent the Company is obligated to pay under this lease agreement is subject to an adjustment for an inflation factor and the lease expires on December 31, 2020. The principal balance outstanding under this lease was $6.3 million on June 30, 2019 and $8.1 million on December 30, 2018. A summary of rental payments related to these leases is as follows: Second Quarter First Half (in thousands) 2019 2018 2019 2018 Company headquarters $ 1,151 $ 1,110 $ 2,261 $ 2,236 Snyder Production Center 1,081 1,049 2,161 2,098 |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 3. Revenue Recognition The Company offers a range of nonalcoholic beverage products and flavors designed to meet the demands of its consumers, including both sparkling and still beverages. Sparkling beverages are carbonated beverages and the Company’s principal sparkling beverage is Coca‑Cola. Still beverages include energy products and noncarbonated beverages such as bottled water, tea, ready to drink coffee, enhanced water, juices and sports drinks. The Company’s products are sold and distributed in the United States through various channels, which include selling directly to retail stores and other outlets such as food markets, institutional accounts and vending machine outlets. The Company typically collects payment from customers within 30 days from the date of sale. The Company’s sales are divided into two main categories: (i) bottle/can sales and (ii) other sales. Bottle/can sales include products packaged primarily in plastic bottles and aluminum cans. Bottle/can net pricing is based on the invoice price charged to customers reduced by any promotional allowances. Bottle/can net pricing per unit is impacted by the price charged per package, the sales volume generated for each package and the channels in which those packages are sold. Other sales include sales to other Coca‑Cola bottlers, “post‑mix” products, transportation revenue and equipment maintenance revenue. Post-mix products are dispensed through equipment that mixes fountain syrups with carbonated or still water, enabling fountain retailers to sell finished products to consumers in cups or glasses. The Company’s contracts are derived from customer orders, including customer sales incentives, generated through an order processing and replenishment model. Revenues do not include sales or other taxes collected from customers. Bottle/can sales, sales to other Coca‑Cola bottlers and post-mix sales are recognized when control transfers to a customer, which is generally upon delivery and is considered a single point in time (“point in time”). Point in time sales accounted for approximately 96% of the Company’s net sales in the first half of 2019 and 97% of the Company’s net sales in the first half of 2018. Substantially all the Company’s revenue is recognized at a point in time and is included in the Nonalcoholic Beverages segment. Other sales, which include revenue for service fees related to the repair of cold drink equipment and delivery fees for freight hauling and brokerage services, are recognized over time (“over time”). Revenues related to cold drink equipment repair are recognized as the respective services are completed using a cost-to-cost input method. Repair services are generally completed in less than one day but can extend up to one month. Revenues related to freight hauling and brokerage services are recognized as the delivery occurs using a miles driven output method. Generally, delivery occurs and freight charges are recognized in the same day. Over time sales orders open at the end of a financial period are not material to the Company’s condensed consolidated financial statements. The following table represents a disaggregation of revenue from contracts with customers: Second Quarter First Half (in thousands) 2019 2018 2019 2018 Point in time net sales: Nonalcoholic - point in time $ 1,227,977 $ 1,183,083 $ 2,288,248 $ 2,214,891 Total point in time net sales $ 1,227,977 $ 1,183,083 $ 2,288,248 $ 2,214,891 Over time net sales: Nonalcoholic - over time $ 10,908 $ 9,199 $ 22,864 $ 17,813 Other - over time 34,774 27,721 65,459 52,056 Total over time net sales $ 45,682 $ 36,920 $ 88,323 $ 69,869 Total net sales $ 1,273,659 $ 1,220,003 $ 2,376,571 $ 2,284,760 The Company participates in various sales programs with The Coca‑Cola Company, other beverage companies and customers to increase the sale of its products. Programs negotiated with customers include arrangements under which allowances can be earned for attaining agreed-upon sales levels. The cost of these various sales incentives are not considered a separate performance obligation and are included as deductions to net sales. Allowance payments made to customers can be conditional on the achievement of volume targets and/or marketing commitments. Payments made in advance are recorded as prepayments and amortized in the condensed consolidated statements of operations over the relevant period for which the customer commitment is made. In the event there is no separate identifiable benefit or the fair value of such benefit cannot be established, the amortization of the prepayment is included as a reduction to net sales. The Company historically presented consideration paid to customers under certain contractual arrangements for exclusive distribution rights and sponsorship privileges as a marketing expense within SD&A expenses. The Company has now determined such amounts should be presented as a reduction to net sales and has revised the presentation of previously issued financial statements to correct for this error. Management believes the effect on previously reported financial statements is not material. In addition, management believes the revised presentation provides consistency with other companies that operate in the beverage industry. Net sales and SD&A expenses were revised by $7.3 million in the second quarter of 2018 and $14.6 million in the first half of 2018. The revision had no impact to net loss or net loss per share. The majority of the Company’s contracts include multiple performance obligations related to the delivery of specifically identifiable products, which generally have a duration of less than one year. For sales contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation using stated contractual price, which represents the standalone selling price of each distinct good sold under the contract. Generally, the Company’s service contracts have a single performance obligation. The Company sells its products and extends credit, generally without requiring collateral, based on an ongoing evaluation of the customer’s business prospects and financial condition. The Company evaluates the collectibility of its trade accounts receivable based on a number of factors, including the Company’s historic collections pattern and changes to a specific customer’s ability to meet its financial obligations. The Company has established an allowance for doubtful accounts to adjust the recorded receivable to the estimated amount the Company believes will ultimately be collected. The nature of the Company’s contracts gives rise to several types of variable consideration, including prospective and retrospective rebates. The Company accounts for its prospective and retrospective rebates using the expected value method, which estimates the net price to the customer based on the customer’s expected annual sales volume projections. The Company experiences customer returns primarily as a result of damaged or out-of-date product. At any given time, the Company estimates less than 1% of bottle/can sales and post-mix sales could be at risk for return by customers. The Company’s reserve for customer returns, which was classified as allowance for doubtful accounts in the condensed consolidated balance sheets, |
Segments
Segments | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segments | 4. Segments The Company evaluates segment reporting in accordance with the FASB Accounting Standards Codification 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 . Asset information is not provided to the CODM. The Company believes four operating segments exist. Nonalcoholic Beverages represents the vast majority of the Company’s consolidated revenues and income from operations . 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: Second Quarter First Half (in thousands) 2019 2018 2019 2018 Net sales: Nonalcoholic Beverages (1) $ 1,238,885 $ 1,192,282 $ 2,311,112 $ 2,232,704 All Other 94,942 93,398 182,857 179,997 Eliminations (2) (60,168 ) (65,677 ) (117,398 ) (127,941 ) Consolidated net sales $ 1,273,659 $ 1,220,003 $ 2,376,571 $ 2,284,760 Income (loss) from operations: Nonalcoholic Beverages $ 57,724 $ 16,089 $ 72,365 $ (6,656 ) All Other 9,490 3,590 15,003 7,338 Consolidated income from operations $ 67,214 $ 19,679 $ 87,368 $ 682 Depreciation and amortization: Nonalcoholic Beverages $ 42,568 $ 44,220 $ 85,919 $ 89,045 All Other 2,488 2,467 4,909 4,862 Consolidated depreciation and amortization $ 45,056 $ 46,687 $ 90,828 $ 93,907 (1) The Company historically presented consideration paid to customers under certain contractual arrangements for exclusive distribution rights and sponsorship privileges as a marketing expense within SD&A expenses. The Company has now determined such amounts should be presented as a reduction to net sales and has revised the presentation of previously issued financial statements to correct for this error. Net sales and SD&A expenses were revised by $7.3 million in the second quarter of 2018 and $14.6 million in the first half of 2018. See Note 3 to the condensed consolidated financial statements for additional information. (2) 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 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | 5. Net The following table sets forth the computation of basic net income (loss) per share and diluted net income (loss) per share under the two-class method: Second Quarter First Half (in thousands, except per share data) 2019 2018 2019 2018 Numerator for basic and diluted net income (loss) per Common Stock and Class B Common Stock share: Net income (loss) attributable to Coca-Cola Consolidated, Inc. $ 15,370 $ (3,933 ) $ 8,539 $ (18,118 ) Less dividends: Common Stock 1,785 1,785 3,570 3,570 Class B Common Stock 558 553 1,112 1,101 Total undistributed earnings (losses) $ 13,027 $ (6,271 ) $ 3,857 $ (22,789 ) Second Quarter First Half (in thousands, except per share data) 2019 2018 2019 2018 Common Stock undistributed earnings (losses) – basic $ 9,925 $ (4,787 ) $ 2,941 $ (17,411 ) Class B Common Stock undistributed earnings (losses) – basic 3,102 (1,484 ) 916 (5,378 ) Total undistributed earnings (losses) – basic $ 13,027 $ (6,271 ) $ 3,857 $ (22,789 ) Common Stock undistributed earnings (losses) – diluted $ 9,874 $ (4,787 ) $ 2,925 $ (17,411 ) Class B Common Stock undistributed earnings (losses) – diluted 3,153 (1,484 ) 932 (5,378 ) Total undistributed earnings (losses) – diluted $ 13,027 $ (6,271 ) $ 3,857 $ (22,789 ) Numerator for basic net income (loss) per Common Stock share: Dividends on Common Stock $ 1,785 $ 1,785 $ 3,570 $ 3,570 Common Stock undistributed earnings (losses) – basic 9,925 (4,787 ) 2,941 (17,411 ) Numerator for basic net income (loss) per Common Stock share $ 11,710 $ (3,002 ) $ 6,511 $ (13,841 ) Numerator for basic net income (loss) per Class B Common Stock share: Dividends on Class B Common Stock $ 558 $ 553 $ 1,112 $ 1,101 Class B Common Stock undistributed earnings (losses) – basic 3,102 (1,484 ) 916 (5,378 ) Numerator for basic net income (loss) per Class B Common Stock share $ 3,660 $ (931 ) $ 2,028 $ (4,277 ) Numerator for diluted net income (loss) per Common Stock share: Dividends on Common Stock $ 1,785 $ 1,785 $ 3,570 $ 3,570 Dividends on Class B Common Stock assumed converted to Common Stock 558 553 1,112 1,101 Common Stock undistributed earnings (losses) – diluted 13,027 (6,271 ) 3,857 (22,789 ) Numerator for diluted net income (loss) per Common Stock share $ 15,370 $ (3,933 ) $ 8,539 $ (18,118 ) Numerator for diluted net income (loss) per Class B Common Stock share: Dividends on Class B Common Stock $ 558 $ 553 $ 1,112 $ 1,101 Class B Common Stock undistributed earnings (losses) – diluted 3,153 (1,484 ) 932 (5,378 ) Numerator for diluted net income (loss) per Class B Common Stock share $ 3,711 $ (931 ) $ 2,044 $ (4,277 ) Denominator for basic net income (loss) per Common Stock and Class B Common Stock share: Common Stock weighted average shares outstanding – basic 7,141 7,141 7,141 7,141 Class B Common Stock weighted average shares outstanding – basic 2,232 2,213 2,225 2,206 Denominator for diluted net income (loss) 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) 9,421 9,354 9,415 9,347 Class B Common Stock weighted average shares outstanding – diluted 2,280 2,213 2,274 2,206 Basic net income (loss) per share: Common Stock $ 1.64 $ (0.42 ) $ 0.91 $ (1.94 ) Class B Common Stock $ 1.64 $ (0.42 ) $ 0.91 $ (1.94 ) Diluted net income (loss) per share: Common Stock $ 1.64 $ (0.42 ) $ 0.91 $ (1.94 ) Class B Common Stock $ 1.63 $ (0.42 ) $ 0.90 $ (1.94 ) NOTES TO TABLE (1) For purposes of the diluted net income (loss) per share computation for Common Stock, all shares of Class B Common Stock are assumed to be converted; therefore, 100% of undistributed losses is allocated to Common Stock. (2) For purposes of the diluted net income (loss) per share computation for Class B Common Stock, weighted average shares of Class B Common Stock are assumed to be outstanding for the entire period and not converted. (3) For periods presented during which the Company has net income, the denominator for diluted net income per share for Common Stock and Class B Common Stock included the dilutive effect of shares relative to the Long-Term Performance Equity Plan and Long-Term Performance Equity Plan and Long-Term Performance Equity Plan and (4) The Company does not have anti-dilutive shares. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 6. Inventories Inventories consisted of the following: (in thousands) June 30, 2019 December 30, 2018 Finished products $ 154,669 $ 135,561 Manufacturing materials 38,033 39,840 Plastic shells, plastic pallets and other inventories 38,196 34,632 Total inventories $ 230,898 $ 210,033 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 6 Months Ended |
Jun. 30, 2019 | |
Prepaid Expense And Other Assets [Abstract] | |
Prepaid Expenses and Other Current Assets | 7. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: (in thousands) June 30, 2019 December 30, 2018 Repair parts $ 27,821 $ 26,846 Prepaid marketing 7,755 6,097 Prepaid software 6,858 6,553 Current portion of income taxes 6,517 6,637 Prepayments for sponsorship contracts 5,516 7,557 Other prepaid expenses and other current assets 17,860 16,990 Total prepaid expenses and other current assets $ 72,327 $ 70,680 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 6 Months Ended |
Jun. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment, Net | 8. Property, Plant and Equipment, Net The principal categories and estimated useful lives of property, plant and equipment, net were as follows: (in thousands) June 30, 2019 December 30, 2018 Estimated Useful Lives Land $ 77,949 $ 78,242 Buildings 220,608 218,846 8-50 years Machinery and equipment 333,795 328,034 5-20 years Transportation equipment 384,642 372,895 4-20 years Furniture and fixtures 90,812 89,439 3-10 years Cold drink dispensing equipment 495,458 491,161 5-17 years Leasehold and land improvements 134,435 132,837 5-20 years Software for internal use 122,882 122,604 3-10 years Construction in progress 17,929 15,142 Total property, plant and equipment, at cost 1,878,510 1,849,200 Less: Accumulated depreciation and amortization 916,108 858,668 Property, plant and equipment, net $ 962,402 $ 990,532 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | 9. Leases The Company leases office and warehouse space, machinery and other equipment under noncancelable operating lease agreements and also leases certain warehouse space under financing lease agreements. The Company adopted the lease standard using the optional transition method on December 31, 2018, the transition date, and elected to adopt the following practical expedients as accounting policy upon initial adoption of the lease standard: • Short-term lease exception: Allows the Company to not recognize leases with a contractual term of less than 12 months on the balance sheet. • Election to not separate non-lease components: Allows the Company to not separate lease and non-lease components and to account for both components as a single component, recognized on the balance sheet. • Package of practical expedients for transition: Allows the Company to not reassess (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases, and (iii) any initial direct costs for any existing leases as of the transition date. • Additional transition method/relief: Allows the Company to apply the transition requirements in the lease standard as of the transition date, with any impact of initially applying the lease standard recognized as a cumulative effect adjustment to retained earnings in the period of adoption. This also requires the Company to maintain previous disclosure requirements for comparative periods. Upon adoption of the lease standard on December 31, 2018, the Company recorded right of use assets for operating leases of $88.0 million and associated lease liabilities of $88.2 million. The adoption of the lease standard did not change previously reported condensed consolidated statements of operations, did not result in a cumulative effect adjustment to retained earnings in the period of adoption and did not impact cash flows. The Company used the following policies and assumptions to evaluate its population of leases: • Determining a lease: The Company assesses contracts at inception to determine whether an arrangement is or includes a lease, which conveys the Company’s right to control the use of an identified asset for a period of time in exchange for consideration. Operating lease right of use assets and associated liabilities are recognized at the commencement date and initially measured based on the present value of lease payments over the defined lease term. • Allocating lease and non-lease components: The Company has elected the practical expedient to not separate lease and non-lease components for certain classes of underlying assets. The Company has equipment and vehicle lease agreements, which generally have the lease and associated non-lease components accounted for as a single lease component. The Company has real estate lease agreements with lease and non-lease components, which are generally accounted for separately where applicable. • Discount rate: The Company calculates the discount rate based on the discount rate implicit in the lease, or if the implicit rate is not readily determinable from the lease, then the Company calculates an incremental borrowing rate using a portfolio approach. The incremental borrowing rate is calculated using the contractual lease term and the Company’s borrowing rate. • Lease term: The Company does not recognize leases with a contractual term of less than 12 months on the balance sheet. Lease expense for these short-term leases is expensed on a straight-line basis over the lease term. • Rent increases or escalation clauses: Certain leases contain scheduled rent increases or escalation clauses, which can be based on the Consumer Price Index or other rates. The Company assesses each contract individually and applies the appropriate variable payments based on the terms of the agreement. • Renewal options and/or purchase options: Certain leases include renewal options to extend the lease term and/or purchase options to purchase the leased asset. The Company assesses these options using a threshold of reasonably certain, which is a high threshold and, therefore, the majority of the Company’s leases do not include renewal periods or purchase options for the measurement of the right of use asset and the associated lease liability. For leases the Company is reasonably certain to renew or purchase, those options are included within the lease term and, therefore, included in the measurement of the right of use asset and the associated lease liability. • Option to terminate: Certain leases include the option to terminate the lease prior to its scheduled expiration. This allows a contractually bound party to terminate its obligation under the lease contract, typically in return for an agreed upon financial consideration. The terms and conditions of the termination options vary by contract. • Residual value guarantees, restrictions or covenants: The Company’s lease agreements do not contain residual value guarantees, restrictions or covenants. Following is a summary of the weighted average remaining lease term and weighted average discount rate for the Company’s population of leases as of June 30, 2019: Operating Leases Financing Leases Weighted average remaining lease term 8.8 years 5.0 years Weighted average discount rate 4.0 % 5.8 % As of June 30, 2019, the Company had real estate and equipment operating lease commitments that had not yet commenced. The commitments are expected to commence in the remainder of 2019 and have lease terms of 5 to 10 years. The additional lease liability associated with these lease commitments is expected to be $16.0 million. Following is a summary of balances related to the Company’s lease portfolio within the Company’s condensed consolidated statement of operations for the second quarter and first half of 2019: (in thousands) Second Quarter 2019 First Half 2019 Cost of sales impact: Operating leases costs $ 1,342 $ 2,683 Short-term and variable leases 2,317 4,579 Depreciation expense from financing leases (1) 354 707 Total cost of sales impact $ 4,013 $ 7,969 Selling, delivery and administrative expenses impact: Operating leases costs $ 3,026 $ 5,922 Short-term and variable leases 779 1,838 Depreciation expense from financing leases (1) 1,137 2,276 Total selling, delivery and administrative expenses impact $ 4,942 $ 10,036 Interest expense, net impact: Interest payments on financing lease obligations (2) $ 715 $ 1,417 Total interest expense, net impact $ 715 $ 1,417 Total lease cost $ 9,670 $ 19,422 (1) During the second quarter of 2018, the Company had depreciation expense from capital leases of $0.3 million and $1.2 million in cost of sales and SD&A expenses, respectively. During the first half of 2018, the Company had depreciation expense from capital leases of $0.7 million and $2.3 million in cost of sales and SD&A expenses, respectively. (2) The Company had interest payments on capital lease obligations of $0.9 million during the second quarter of 2018 and $1.8 million during the first half of 2018. The future minimum lease payments related to the Company’s lease portfolio include renewal options the Company has determined to be reasonably assured and exclude payments to landlords for real estate taxes and common area maintenance. Following is a summary of future minimum lease payments for all noncancelable operating leases and financing leases as of June 30, 2019 : (in thousands) Operating Leases Financing Total Remainder of 2019 $ 8,751 $ 5,222 $ 13,973 2020 18,652 10,611 29,263 2021 16,658 6,215 22,873 2022 13,551 2,694 16,245 2023 11,698 2,750 14,448 Thereafter 54,384 8,214 62,598 Total minimum lease payments including interest $ 123,694 $ 35,706 $ 159,400 Less: Amounts representing interest 21,119 4,505 25,624 Present value of minimum lease principal payments 102,575 31,201 133,776 Less: Current portion of lease liabilities - operating and financing leases 14,771 9,019 23,790 Noncurrent portion of lease liabilities - operating and financing leases $ 87,804 $ 22,182 $ 109,986 Following is a summary of future minimum lease payments for all noncancelable operating leases and capital leases as of December 30, 2018: (in thousands) Operating Leases Capital Total 2019 $ 14,146 $ 10,434 $ 24,580 2020 13,526 10,613 24,139 2021 12,568 6,218 18,786 2022 11,161 2,697 13,858 2023 10,055 2,753 12,808 Thereafter 33,805 8,106 41,911 Total minimum lease payments including interest $ 95,261 $ 40,821 $ 136,082 Less: Amounts representing interest 5,573 Present value of minimum lease principal payments 35,248 Less: Current portion of lease liabilities - capital leases 8,617 Noncurrent portion of lease liabilities - capital leases $ 26,631 Following is a summary of balances related to the Company’s lease portfolio within the Company’s condensed consolidated statements of cash flows for the first half of 2019: (in thousands) First Half 2019 Cash flows from operating activities impact: Operating leases $ 8,515 Interest payments on financing lease obligations (1) 1,417 Total cash flows from operating activities impact $ 9,932 Cash flows from financing activities: Principal payments on financing lease obligations (1) $ 4,261 Total cash flows from financing activities impact $ 4,261 (1) During the first half of 2018, the Company had principal payments on capital lease obligations of $4.0 million and interest payments on capital lease obligations of $1.8 millio |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 10. Goodwill A reconciliation of the activity for goodwill for the first half of 2019 and the first half of 2018 is as follows: First Half (in thousands) 2019 2018 Beginning balance - goodwill $ 165,903 $ 169,316 Measurement period adjustments (1) - 1,583 Ending balance - goodwill $ 165,903 $ 170,899 (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 distribution territories acquired or exchanged by the Company in April 2017 and October 2017 as part of the System Transformation. All final post-closing adjustments for these transactions were completed during 2018. The Company’s goodwill resides entirely within the Nonalcoholic Beverages segment. The Company performs its annual impairment test of goodwill as of the first day of the fourth quarter of each fiscal year. During the first half of 2019, the Company did not experience any triggering events or changes in circumstances indicating the carrying amounts of the Company’s goodwill exceeded fair values. |
Distribution Agreements, Net
Distribution Agreements, Net | 6 Months Ended |
Jun. 30, 2019 | |
Distribution Agreements [Member] | |
Other Identifiable Intangible Assets Net | 11. Distribution Agreements, Net Distribution agreements, net, which are amortized on a straight-line basis and have an estimated useful life of 10 to 40 years, consisted of the following: (in thousands) June 30, 2019 December 30, 2018 Distribution agreements at cost $ 950,549 $ 950,559 Less: Accumulated amortization (62,311 ) (50,176 ) Distribution agreements, net $ 888,238 $ 900,383 A reconciliation of the activity for distribution agreements, net for the first half of 2019 and the first half of 2018 is as follows: First Half (in thousands) 2019 2018 Beginning balance - distribution agreements, net $ 900,383 $ 913,352 Other distribution agreements (10 ) - Measurement period adjustment (1) - 5,100 Additional accumulated amortization (12,135 ) (11,856 ) Ending balance - distribution agreements, net $ 888,238 $ 906,596 (1) |
Customer Lists and Other Identi
Customer Lists and Other Identifiable Intangible Assets, Net | 6 Months Ended |
Jun. 30, 2019 | |
Customer Lists and Other Identifiable Intangible Assets [Member] | |
Other Identifiable Intangible Assets Net | 12. 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 5 to 12 years, consisted of the following: (in thousands) June 30, 2019 December 30, 2018 Customer lists and other identifiable intangible assets at cost $ 25,288 $ 25,288 Less: Accumulated amortization (9,726 ) (8,806 ) Customer lists and other identifiable intangible assets, net $ 15,562 $ 16,482 |
Other Accrued Liabilities
Other Accrued Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Payables And Accruals [Abstract] | |
Other Accrued Liabilities | 13. Other Accrued Liabilities Other accrued liabilities consisted of the following: (in thousands) June 30, 2019 December 30, 2018 Accrued insurance costs $ 42,806 $ 37,916 Current portion of acquisition related contingent consideration 32,131 32,993 Employee and retiree benefit plan accruals 29,821 29,300 Accrued marketing costs 26,712 31,475 Checks and transfers yet to be presented for payment from zero balance cash accounts 13,356 72,701 Accrued taxes (other than income taxes) 9,457 4,577 Commodity hedges at fair market value 7,522 10,305 Current deferred proceeds from Territory Conversion Fee 2,286 2,286 All other accrued expenses 33,010 28,693 Total other accrued liabilities $ 197,101 $ 250,246 |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
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 condensed 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 condensed 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 condensed consolidated statements of operations. Second Quarter First Half (in thousands) Classification of Gain (Loss) 2019 2018 2019 2018 Commodity hedges Cost of sales $ (4,874 ) $ 249 $ (969 ) $ (2,516 ) Commodity hedges Selling, delivery and administrative expenses (66 ) 48 2,649 (154 ) Total gain (loss) $ (4,940 ) $ 297 $ 1,680 $ (2,670 ) The following table summarizes the fair values and classification in the condensed consolidated balance sheets of derivative instruments held by the Company: (in thousands) Balance Sheet Classification June 30, 2019 December 30, 2018 Liabilities: Commodity hedges at fair market value Other accrued liabilities $ 7,522 $ 10,305 Commodity hedges at fair market value Other liabilities 1,103 - Total liabilities $ 8,625 $ 10,305 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 condensed consolidated balance sheets and the net amounts of derivative liabilities are recognized in other accrued liabilities or other liabilities in the condensed consolidated balance sheets. The following table summarizes the Company’s gross derivative assets and gross derivative liabilities in the condensed consolidated balance sheets: (in thousands) June 30, 2019 December 30, 2018 Gross derivative assets $ 17,328 $ 28,305 Gross derivative liabilities 25,953 38,610 The following table summarizes the Company’s outstanding commodity derivative agreements: (in thousands) June 30, 2019 December 30, 2018 Notional amount of outstanding commodity derivative agreements $ 167,630 $ 168,388 Latest maturity date of outstanding commodity derivative agreements December 2020 December 2019 |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
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 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. Nonpublic variable rate debt Level 2 The carrying amounts of the Company’s nonpublic variable rate debt approximate their fair values due to variable interest rates with short reset periods. Nonpublic fixed rate debt Level 2 The fair values of the Company’s nonpublic 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: June 30, 2019 Carrying Total Fair Value Fair Value Fair Value (in thousands) Amount Fair Value Level 1 Level 2 Level 3 Assets: Deferred compensation plan assets $ 39,012 $ 39,012 $ 39,012 $ - $ - Liabilities: Deferred compensation plan liabilities 39,012 39,012 39,012 - - Commodity hedging agreements 8,625 8,625 - 8,625 - Nonpublic variable rate debt 369,662 370,000 - 370,000 - Nonpublic fixed rate debt 374,696 380,900 - 380,900 - Public debt securities 347,794 363,800 - 363,800 - Acquisition related contingent consideration 412,450 412,450 - - 412,450 December 30, 2018 Carrying Total Fair Value Fair Value Fair Value (in thousands) Amount Fair Value Level 1 Level 2 Level 3 Assets: Deferred compensation plan assets $ 33,160 $ 33,160 $ 33,160 $ - $ - Liabilities: Deferred compensation plan liabilities 33,160 33,160 33,160 - - Commodity hedging agreements 10,305 10,305 - 10,305 - Nonpublic variable rate debt 372,074 372,500 - 372,500 - Nonpublic fixed rate debt 274,717 261,200 - 261,200 - Public debt securities 457,612 455,400 - 455,400 - Acquisition related contingent consideration 382,898 382,898 - - 382,898 The 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 distribution territories to fair value by discounting future expected sub-bottling payments required under the CBA using the Company’s estimated WACC. The future expected sub-bottling payments extend through the life of the applicable distribution assets acquired in each System Transformation transaction, 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: Second Quarter First Half (in thousands) 2019 2018 2019 2018 Beginning balance - Level 3 liability $ 393,007 $ 368,804 $ 382,898 $ 381,291 Measurement period adjustments (1) - 3,151 - 2,092 Payments of acquisition related contingent consideration (6,599 ) (5,381 ) (12,836 ) (11,263 ) Reclassification to current payables (3,180 ) (1,180 ) (880 ) (1,540 ) Increase in fair value 29,222 9,143 43,268 3,957 Ending balance - Level 3 liability $ 412,450 $ 374,537 $ 412,450 $ 374,537 (1) The increase in the fair value of the acquisition related contingent consideration liability during the first half of 2019 was primarily driven by a and changes in future cash flow projections of the distribution territories subject to sub-bottling fees cash payments, post-closing adjustments related to System Transformation transactions and changes in future cash flow projections of the distribution territories subject to sub-bottling fees, partially offset by The anticipated amount the Company could pay annually under acquisition related contingent consideration arrangements is expected to be in the range of |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 16. Income Taxes The Company’s effective income tax rate, calculated by dividing income tax expense (benefit) by income (loss) before income taxes, was 27.0% for the first half of 2019 and 44.6% for the first half of 2018. The decrease in the effective tax rate was primarily driven by improved financial results. The Company’s effective income tax rate, calculated by dividing income tax expense (benefit) by income (loss) before income taxes minus net income attributable to noncontrolling interest, was 32.8% for the first half of 2019 and 42.0% for the first half of 2018. The Company had uncertain tax positions, including accrued interest, of $3.2 million on June 30, 2019 and $3.1 million on December 30, 2018, 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 condensed consolidated financial statements. Prior tax years beginning in year 2002 remain open to examination by the Internal Revenue Service, and various tax years beginning in year 1998 remain open to examination by certain state tax jurisdictions. |
Pension and Postretirement Bene
Pension and Postretirement Benefit Obligations | 6 Months Ended |
Jun. 30, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension and Postretirement Benefit Obligations | 17. Pension and Postretirement Benefit Obligations Pension Plans There are two Company-sponsored pension plans. The primary Company-sponsored pension plan was frozen as of June 30, 2006 and no benefits accrued to participants after 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. The components of net periodic pension cost were as follows: Second Quarter First Half (in thousands) 2019 2018 2019 2018 Service cost $ 1,206 $ 1,413 $ 2,413 $ 2,825 Interest cost 3,062 2,856 6,125 5,712 Expected return on plan assets (2,574 ) (3,852 ) (5,148 ) (7,704 ) Recognized net actuarial loss 900 933 1,801 1,866 Amortization of prior service cost 7 6 12 12 Net periodic pension cost $ 2,601 $ 1,356 $ 5,203 $ 2,711 The Company did not make any contributions to the two Company sponsored pension plans during the first half of 2019. Contributions to the two Company-sponsored pension plans are expected to be in the range of $1 million to $2 million for the remainder of 2019. 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 covered 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 components of net periodic postretirement benefit cost were as follows: Second Quarter First Half (in thousands) 2019 2018 2019 2018 Service cost $ 389 $ 503 $ 778 $ 1,005 Interest cost 693 696 1,386 1,392 Recognized net actuarial loss 195 499 391 998 Amortization of prior service cost (322 ) (462 ) (646 ) (924 ) Net periodic postretirement benefit cost $ 955 $ 1,236 $ 1,909 $ 2,471 |
Other Liabilities
Other Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | 18. Other Liabilities Other liabilities consisted of the following: (in thousands) June 30, 2019 December 30, 2018 Noncurrent portion of acquisition related contingent consideration $ 380,319 $ 349,905 Accruals for executive benefit plans 134,753 126,103 Noncurrent deferred proceeds from Territory Conversion Fee 84,020 85,163 Noncurrent deferred proceeds from Legacy Facilities Credit 29,969 30,369 Other 12,495 17,595 Total other liabilities $ 641,556 $ 609,135 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 19. Debt Following is a summary of the Company’s debt: (in thousands) Maturity Date Interest Rate Interest Paid Public or Nonpublic June 30, 2019 December 30, 2018 Senior notes (1) 4/15/2019 7.00% Semi-annually Public $ - $ 110,000 Term loan facility (1) 6/7/2021 Variable Varies Nonpublic 270,000 292,500 Senior notes 2/27/2023 3.28% Semi-annually Nonpublic 125,000 125,000 Revolving credit facility (2) 6/8/2023 Variable Varies Nonpublic 100,000 80,000 Senior notes 11/25/2025 3.80% Semi-annually Public 350,000 350,000 Senior notes 10/10/2026 3.93% Quarterly Nonpublic 100,000 - Senior notes 3/21/2030 3.96% Quarterly Nonpublic 150,000 150,000 Unamortized discount on senior notes (3) 4/15/2019 - (78 ) Unamortized discount on senior notes (3) 11/25/2025 (56 ) (61 ) Debt issuance costs (2,792 ) (2,958 ) Long-term debt $ 1,092,152 $ 1,104,403 (1) (2) The Company’s revolving credit facility has an aggregate maximum borrowing capacity of $500 million, which may be increased at the Company’s option to $750 million, subject to obtaining commitments from the lenders and satisfying other conditions specified in the credit agreement. The Company currently believes all banks participating in the revolving credit facility have the ability to and will meet any funding requests from the Company. (3) 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 April 10, 2019, the Company sold $100 million aggregate principal amount of senior unsecured notes due in 2026 to MetLife Investment Advisors, LLC (“MetLife”) and certain of its affiliates pursuant to a Note Purchase and Private Shelf Agreement dated January 23, 2019 between the Company, MetLife and the other parties thereto. These notes bear interest at 3.93%, payable quarterly in arrears on each January 10, April 10, July 10 and October 10, commencing on July 10, 2019, and will mature on October 10, 2026, unless earlier redeemed by the Company. The Company used the proceeds to refinance the senior notes due on April 15, 2019. The Company may request that MetLife consider the purchase of additional senior unsecured notes of the Company under the agreement in an aggregate principal amount of up to $200 million. 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. The agreements under which the Company’s nonpublic debt were issued include two financial covenants: a consolidated cash flow/fixed charges ratio and a consolidated funded indebtedness/cash flow ratio, each as defined in the respective agreements. The Company was in compliance with these covenants as of June 30, 2019. These covenants do not currently, and the Company does not anticipate they will, restrict its liquidity or capital resources. 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. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 20. Commitments and Contingencies Manufacturing Cooperatives The Company is obligated to purchase at least 80% of its requirements of plastic bottles for certain designated territories from Southeastern. The Company is also obligated to purchase 17.5 million cases of finished product from SAC on an annual basis through June 2024. The Company purchased 14.3 million cases and 15.0 million cases of finished product from SAC in the first half of 2019 and the first half of 2018, respectively. The following table summarizes the Company’s purchases from these manufacturing cooperatives: Second Quarter First Half (in thousands) 2019 2018 2019 2018 Purchases from Southeastern $ 36,614 $ 34,797 $ 70,940 $ 63,966 Purchases from SAC 39,993 41,084 77,439 79,160 Total purchases from manufacturing cooperatives $ 76,607 $ 75,881 $ 148,379 $ 143,126 The Company guarantees a portion of SAC’s debt, which expires at various dates through 2021. The amounts guaranteed were $23.9 million on both June 30, 2019 and December 30, 2018. 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 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. The Company holds no assets as collateral against the SAC guarantee, the fair value of which is immaterial to the Company’s condensed 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 was identified as of June 30, 2019, and there was no impairment identified in 2018. 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 both June 30, 2019 and December 30, 2018. The Company participates in long-term marketing contractual arrangements with certain prestige properties, athletic venues and other locations. As of June 30, 2019, the future payments related to these contractual arrangements, which expire at various dates through 2033, amounted to $198.0 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 condensed consolidated financial statements. |
Capital Transactions
Capital Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Capital Transactions | 21. Capital Transactions During the first quarter of each year presented, J. Frank Harrison, III received shares of the Company’s Class B Common Stock in connection with his services as Chairman of the Board of Directors and Chief Executive Officer of the Company during the prior year, pursuant to a ten-year performance unit award agreement approved in 2008 (the “Performance Unit Award Agreement”). The Performance Unit Award Agreement expired at the end of 2018, with the final award issued in the first quarter of 2019. As permitted under the terms of the Performance Unit Award Agreement, a number of shares were settled in cash each year 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 2019 and 2018 is as follows: Fiscal Year 2019 2018 Date of approval for award March 5, 2019 March 6, 2018 Fiscal year of service covered by award 2018 2017 Shares settled in cash to satisfy tax withholding obligations 15,476 16,504 Increase in Class B Common Stock shares outstanding 19,224 20,296 Total Class B Common Stock awarded 34,700 36,800 Compensation expense for the awards issued pursuant to the Performance Unit Award Agreement, recognized on the closing share price of the last trading day prior to the end of each fiscal period, was $ 2.0 million in the first half of 2019 and $ 1.7 million in the first half of 2018 . In 2018, the Compensation Committee of the Company’s Board of Directors (the “Committee”) and the Company’s stockholders approved a long-term performance equity plan (the “Long-Term Performance Equity Plan”), which compensates J. Frank Harrison, III based on the Company’s performance. The Long-Term Performance Equity Plan succeeded the Performance Unit Award Agreement upon its expiration. Awards granted under the Long-Term Performance Equity Plan are earned based on the Company’s attainment during a performance period of certain performance measures, each as specified by the Committee. These awards may be settled in cash and/or shares of Class B Common Stock, based on the average of the closing prices of shares of Common Stock during the last twenty trading days of the performance period. Compensation expense for the Long-Term Performance Equity Plan, which is included in SD&A expenses on the condensed consolidated statements of operations, was $6.7 million in the first half of 2019 and $1.0 million in the first half of 2018. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 22. 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 the second quarter of 2019 and the second quarter of 2018 is as follows: (in thousands) March 31, 2019 Pre-tax Activity Tax Effect June 30, 2019 Net pension activity: Actuarial loss $ (72,011 ) $ 900 $ (221 ) $ (71,332 ) Prior service costs (20 ) 7 (2 ) (15 ) Net postretirement benefits activity: Actuarial loss (4,754 ) 195 (48 ) (4,607 ) Prior service costs 107 (322 ) 79 (136 ) Foreign currency translation adjustment (9 ) 7 (2 ) (4 ) Reclassification of stranded tax effects (19,720 ) - - (19,720 ) Total $ (96,407 ) $ 787 $ (194 ) $ (95,814 ) (in thousands) April 1, 2018 Pre-tax Activity Tax Effect July 1, 2018 Net pension activity: Actuarial loss $ (77,915 ) $ 933 $ (230 ) $ (77,212 ) Prior service costs (39 ) 6 (1 ) (34 ) Net postretirement benefits activity: Actuarial loss (16,922 ) 499 (124 ) (16,547 ) Prior service costs 1,396 (462 ) 114 1,048 Foreign currency translation adjustment 17 (12 ) 3 8 Total $ (93,463 ) $ 964 $ (238 ) $ (92,737 ) A summary of AOCI(L) for the first half of 2019 and the first half of 2018 is as follows: (in thousands) December 30, 2018 Pre-tax Activity Tax Effect June 30, 2019 Net pension activity: Actuarial loss $ (72,690 ) $ 1,801 $ (443 ) $ (71,332 ) Prior service costs (24 ) 12 (3 ) (15 ) Net postretirement benefits activity: Actuarial loss (4,902 ) 391 (96 ) (4,607 ) Prior service costs 351 (646 ) 159 (136 ) Foreign currency translation adjustment - (3 ) (1 ) (4 ) Reclassification of stranded tax effects - - (19,720 ) (19,720 ) Total $ (77,265 ) $ 1,555 $ (20,104 ) $ (95,814 ) (in thousands) December 31, 2017 Pre-tax Activity Tax Effect July 1, 2018 Net pension activity: Actuarial loss $ (78,618 ) $ 1,866 $ (460 ) $ (77,212 ) Prior service costs (43 ) 12 (3 ) (34 ) Net postretirement benefits activity: Actuarial loss (17,299 ) 998 (246 ) (16,547 ) Prior service costs 1,744 (924 ) 228 1,048 Foreign currency translation adjustment 14 (8 ) 2 8 Total $ (94,202 ) $ 1,944 $ (479 ) $ (92,737 ) A summary of the impact of AOCI(L) on certain statements of operations line items is as follows: Second Quarter 2019 (in thousands) Net Pension Activity Net Benefits Activity Foreign Currency Translation Adjustment Total Cost of sales $ 266 $ (66 ) $ - $ 200 Selling, delivery and administrative expenses 641 (61 ) 7 587 Subtotal pre-tax 907 (127 ) 7 787 Income tax expense 223 (31 ) 2 194 Total after tax effect $ 684 $ (96 ) $ 5 $ 593 Second Quarter 2018 (in thousands) Net Pension Activity Net Benefits Activity Foreign Currency Translation Adjustment Total Cost of sales $ 215 $ 7 $ - $ 222 Selling, delivery and administrative expenses 724 30 (12 ) 742 Subtotal pre-tax 939 37 (12 ) 964 Income tax expense 231 10 (3 ) 238 Total after tax effect $ 708 $ 27 $ (9 ) $ 726 First Half 2019 (in thousands) Net Pension Activity Net Benefits Activity Foreign Currency Translation Adjustment Total Cost of sales $ 529 $ (133 ) $ - $ 396 Selling, delivery and administrative expenses 1,284 (122 ) (3 ) 1,159 Subtotal pre-tax 1,813 (255 ) (3 ) 1,555 Income tax expense 446 (63 ) 1 384 Total after tax effect $ 1,367 $ (192 ) $ (4 ) $ 1,171 First Half 2018 (in thousands) Net Pension Activity Net Benefits Activity Foreign Currency Translation Adjustment Total Cost of sales $ 431 $ 13 $ - $ 444 Selling, delivery and administrative expenses 1,447 61 (8 ) 1,500 Subtotal pre-tax 1,878 74 (8 ) 1,944 Income tax expense 463 18 (2 ) 479 Total after tax effect $ 1,415 $ 56 $ (6 ) $ 1,465 |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures of Cash Flow Information | 23. Supplemental Disclosures of Cash Flow Information Changes in current assets and current liabilities affecting cash flows were as follows: First Half (in thousands) 2019 2018 Accounts receivable, trade, net $ (20,374 ) $ (60,592 ) Accounts receivable from The Coca-Cola Company (23,273 ) (7,586 ) Accounts receivable, other (8,199 ) 9,923 Inventories (20,865 ) (38,455 ) Prepaid expenses and other current assets (2,408 ) 11,565 Accounts payable, trade 32,761 12,767 Accounts payable to The Coca-Cola Company 28,237 60,857 Other accrued liabilities (52,688 ) 13,609 Accrued compensation (10,256 ) (18,160 ) Accrued interest payable (1,777 ) (55 ) Change in current assets less current liabilities (exclusive of acquisitions) $ (78,842 ) $ (16,127 ) |
Significant Accounting Polici_2
Significant Accounting Policies and New Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies In the ordinary course of business, the Company has made a number of estimates and assumptions relating to the reporting of results of operations and financial position in the preparation of its condensed consolidated financial statements in conformity with GAAP. Actual results could differ significantly from those estimates under different assumptions and conditions. The Company included in its Annual Report on Form 10‑K for 2018 under the caption “Discussion of Critical Accounting Policies, Estimates and New Accounting Pronouncements” in Part II, “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations,” a discussion of the Company’s most critical accounting policies, which are those the Company believes to be the most important to the portrayal of its financial condition and results of operations and require management’s most difficult, subjective and complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Any changes in critical accounting policies and estimates are discussed with the Audit Committee of the Board of Directors of the Company during the quarter in which a change is contemplated and prior to making such change. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2018, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2018‑02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which provides the option to reclassify stranded tax effects resulting from the Tax Cuts and Jobs Act (the “Tax Act”) from accumulated other comprehensive income to retained earnings. This standard is required to be applied either in the period of adoption or retrospectively to each period in which the changes in the U.S. federal corporate income tax rate pursuant to the Tax Act are recognized. The new guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and can be early adopted. The Company adopted ASU 2018‑02 in the first quarter of 2019 and recognized a cumulative effect adjustment to the opening balance of retained earnings in 2019. The cumulative effect adjustment increased retained earnings by $19.7 million. In February 2016, the FASB issued ASU 2016-02, “Leases,” (the “lease standard”). The lease standard 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 adopted the new accounting standard during the first quarter of 2019 using the optional transition method. See Note 9 to the condensed consolidated financial statements for additional information on the Company’s adoption of the lease standard. |
Revenue Recognition | The Company offers a range of nonalcoholic beverage products and flavors designed to meet the demands of its consumers, including both sparkling and still beverages. Sparkling beverages are carbonated beverages and the Company’s principal sparkling beverage is Coca‑Cola. Still beverages include energy products and noncarbonated beverages such as bottled water, tea, ready to drink coffee, enhanced water, juices and sports drinks. The Company’s products are sold and distributed in the United States through various channels, which include selling directly to retail stores and other outlets such as food markets, institutional accounts and vending machine outlets. The Company typically collects payment from customers within 30 days from the date of sale. The Company’s sales are divided into two main categories: (i) bottle/can sales and (ii) other sales. Bottle/can sales include products packaged primarily in plastic bottles and aluminum cans. Bottle/can net pricing is based on the invoice price charged to customers reduced by any promotional allowances. Bottle/can net pricing per unit is impacted by the price charged per package, the sales volume generated for each package and the channels in which those packages are sold. Other sales include sales to other Coca‑Cola bottlers, “post‑mix” products, transportation revenue and equipment maintenance revenue. Post-mix products are dispensed through equipment that mixes fountain syrups with carbonated or still water, enabling fountain retailers to sell finished products to consumers in cups or glasses. The Company’s contracts are derived from customer orders, including customer sales incentives, generated through an order processing and replenishment model. Revenues do not include sales or other taxes collected from customers. Bottle/can sales, sales to other Coca‑Cola bottlers and post-mix sales are recognized when control transfers to a customer, which is generally upon delivery and is considered a single point in time (“point in time”). Point in time sales accounted for approximately 96% of the Company’s net sales in the first half of 2019 and 97% of the Company’s net sales in the first half of 2018. Substantially all the Company’s revenue is recognized at a point in time and is included in the Nonalcoholic Beverages segment. Other sales, which include revenue for service fees related to the repair of cold drink equipment and delivery fees for freight hauling and brokerage services, are recognized over time (“over time”). Revenues related to cold drink equipment repair are recognized as the respective services are completed using a cost-to-cost input method. Repair services are generally completed in less than one day but can extend up to one month. Revenues related to freight hauling and brokerage services are recognized as the delivery occurs using a miles driven output method. Generally, delivery occurs and freight charges are recognized in the same day. Over time sales orders open at the end of a financial period are not material to the Company’s condensed consolidated financial statements. The following table represents a disaggregation of revenue from contracts with customers: Second Quarter First Half (in thousands) 2019 2018 2019 2018 Point in time net sales: Nonalcoholic - point in time $ 1,227,977 $ 1,183,083 $ 2,288,248 $ 2,214,891 Total point in time net sales $ 1,227,977 $ 1,183,083 $ 2,288,248 $ 2,214,891 Over time net sales: Nonalcoholic - over time $ 10,908 $ 9,199 $ 22,864 $ 17,813 Other - over time 34,774 27,721 65,459 52,056 Total over time net sales $ 45,682 $ 36,920 $ 88,323 $ 69,869 Total net sales $ 1,273,659 $ 1,220,003 $ 2,376,571 $ 2,284,760 The Company participates in various sales programs with The Coca‑Cola Company, other beverage companies and customers to increase the sale of its products. Programs negotiated with customers include arrangements under which allowances can be earned for attaining agreed-upon sales levels. The cost of these various sales incentives are not considered a separate performance obligation and are included as deductions to net sales. Allowance payments made to customers can be conditional on the achievement of volume targets and/or marketing commitments. Payments made in advance are recorded as prepayments and amortized in the condensed consolidated statements of operations over the relevant period for which the customer commitment is made. In the event there is no separate identifiable benefit or the fair value of such benefit cannot be established, the amortization of the prepayment is included as a reduction to net sales. The Company historically presented consideration paid to customers under certain contractual arrangements for exclusive distribution rights and sponsorship privileges as a marketing expense within SD&A expenses. The Company has now determined such amounts should be presented as a reduction to net sales and has revised the presentation of previously issued financial statements to correct for this error. Management believes the effect on previously reported financial statements is not material. In addition, management believes the revised presentation provides consistency with other companies that operate in the beverage industry. Net sales and SD&A expenses were revised by $7.3 million in the second quarter of 2018 and $14.6 million in the first half of 2018. The revision had no impact to net loss or net loss per share. The majority of the Company’s contracts include multiple performance obligations related to the delivery of specifically identifiable products, which generally have a duration of less than one year. For sales contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation using stated contractual price, which represents the standalone selling price of each distinct good sold under the contract. Generally, the Company’s service contracts have a single performance obligation. The Company sells its products and extends credit, generally without requiring collateral, based on an ongoing evaluation of the customer’s business prospects and financial condition. The Company evaluates the collectibility of its trade accounts receivable based on a number of factors, including the Company’s historic collections pattern and changes to a specific customer’s ability to meet its financial obligations. The Company has established an allowance for doubtful accounts to adjust the recorded receivable to the estimated amount the Company believes will ultimately be collected. The nature of the Company’s contracts gives rise to several types of variable consideration, including prospective and retrospective rebates. The Company accounts for its prospective and retrospective rebates using the expected value method, which estimates the net price to the customer based on the customer’s expected annual sales volume projections. The Company experiences customer returns primarily as a result of damaged or out-of-date product. At any given time, the Company estimates less than 1% of bottle/can sales and post-mix sales could be at risk for return by customers. The Company’s reserve for customer returns, which was classified as allowance for doubtful accounts in the condensed consolidated balance sheets, |
Lessees | The Company leases office and warehouse space, machinery and other equipment under noncancelable operating lease agreements and also leases certain warehouse space under financing lease agreements. The Company adopted the lease standard using the optional transition method on December 31, 2018, the transition date, and elected to adopt the following practical expedients as accounting policy upon initial adoption of the lease standard: • Short-term lease exception: Allows the Company to not recognize leases with a contractual term of less than 12 months on the balance sheet. • Election to not separate non-lease components: Allows the Company to not separate lease and non-lease components and to account for both components as a single component, recognized on the balance sheet. • Package of practical expedients for transition: Allows the Company to not reassess (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases, and (iii) any initial direct costs for any existing leases as of the transition date. • Additional transition method/relief: Allows the Company to apply the transition requirements in the lease standard as of the transition date, with any impact of initially applying the lease standard recognized as a cumulative effect adjustment to retained earnings in the period of adoption. This also requires the Company to maintain previous disclosure requirements for comparative periods. Upon adoption of the lease standard on December 31, 2018, the Company recorded right of use assets for operating leases of $88.0 million and associated lease liabilities of $88.2 million. The adoption of the lease standard did not change previously reported condensed consolidated statements of operations, did not result in a cumulative effect adjustment to retained earnings in the period of adoption and did not impact cash flows. The Company used the following policies and assumptions to evaluate its population of leases: • Determining a lease: The Company assesses contracts at inception to determine whether an arrangement is or includes a lease, which conveys the Company’s right to control the use of an identified asset for a period of time in exchange for consideration. Operating lease right of use assets and associated liabilities are recognized at the commencement date and initially measured based on the present value of lease payments over the defined lease term. • Allocating lease and non-lease components: The Company has elected the practical expedient to not separate lease and non-lease components for certain classes of underlying assets. The Company has equipment and vehicle lease agreements, which generally have the lease and associated non-lease components accounted for as a single lease component. The Company has real estate lease agreements with lease and non-lease components, which are generally accounted for separately where applicable. • Discount rate: The Company calculates the discount rate based on the discount rate implicit in the lease, or if the implicit rate is not readily determinable from the lease, then the Company calculates an incremental borrowing rate using a portfolio approach. The incremental borrowing rate is calculated using the contractual lease term and the Company’s borrowing rate. • Lease term: The Company does not recognize leases with a contractual term of less than 12 months on the balance sheet. Lease expense for these short-term leases is expensed on a straight-line basis over the lease term. • Rent increases or escalation clauses: Certain leases contain scheduled rent increases or escalation clauses, which can be based on the Consumer Price Index or other rates. The Company assesses each contract individually and applies the appropriate variable payments based on the terms of the agreement. • Renewal options and/or purchase options: Certain leases include renewal options to extend the lease term and/or purchase options to purchase the leased asset. The Company assesses these options using a threshold of reasonably certain, which is a high threshold and, therefore, the majority of the Company’s leases do not include renewal periods or purchase options for the measurement of the right of use asset and the associated lease liability. For leases the Company is reasonably certain to renew or purchase, those options are included within the lease term and, therefore, included in the measurement of the right of use asset and the associated lease liability. • Option to terminate: Certain leases include the option to terminate the lease prior to its scheduled expiration. This allows a contractually bound party to terminate its obligation under the lease contract, typically in return for an agreed upon financial consideration. The terms and conditions of the termination options vary by contract. • Residual value guarantees, restrictions or covenants: The Company’s lease agreements do not contain residual value guarantees, restrictions or covenants. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transaction [Line Items] | |
Summary of Rental Payments Related to Leases | A summary of rental payments related to these leases is as follows: Second Quarter First Half (in thousands) 2019 2018 2019 2018 Company headquarters $ 1,151 $ 1,110 $ 2,261 $ 2,236 Snyder Production Center 1,081 1,049 2,161 2,098 |
The Coca-Cola Company [Member] | |
Related Party Transaction [Line Items] | |
Summary of Significant Transactions between Company and The Coca-Cola Company | The following table summarizes the significant transactions between the Company and The Coca‑Cola Company: Second Quarter First Half (in thousands) 2019 2018 2019 2018 Payments made by the Company to The Coca-Cola Company for: Concentrate, syrup, sweetener and other purchases $ 344,841 $ 328,689 $ 611,484 $ 571,157 Customer marketing programs 39,221 41,475 72,513 76,057 Cold drink equipment parts 7,067 8,089 14,049 14,230 Payments made by The Coca-Cola Company to the Company for: Marketing funding support payments $ 26,311 $ 22,656 $ 49,023 $ 42,693 Fountain delivery and equipment repair fees 9,885 10,353 20,634 19,700 Presence marketing funding support on the Company’s behalf 4,502 4,614 4,937 5,095 Facilitating the distribution of certain brands and packages to other Coca-Cola bottlers 1,351 4,256 2,350 8,124 Cold drink equipment - 3,789 - 3,789 |
CCR [Member] | |
Related Party Transaction [Line Items] | |
Summary of Liability to Estimated Fair Value of Contingent Consideration | The following table summarizes the liability recorded by the Company to reflect the estimated fair value of contingent consideration related to future sub‑bottling payments to CCR: (in thousands) June 30, 2019 December 30, 2018 Current portion of acquisition related contingent consideration $ 32,131 $ 32,993 Noncurrent portion of acquisition related contingent consideration 380,319 349,905 Total acquisition related contingent consideration $ 412,450 $ 382,898 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregation of Revenue from Contracts with Customers | The following table represents a disaggregation of revenue from contracts with customers: Second Quarter First Half (in thousands) 2019 2018 2019 2018 Point in time net sales: Nonalcoholic - point in time $ 1,227,977 $ 1,183,083 $ 2,288,248 $ 2,214,891 Total point in time net sales $ 1,227,977 $ 1,183,083 $ 2,288,248 $ 2,214,891 Over time net sales: Nonalcoholic - over time $ 10,908 $ 9,199 $ 22,864 $ 17,813 Other - over time 34,774 27,721 65,459 52,056 Total over time net sales $ 45,682 $ 36,920 $ 88,323 $ 69,869 Total net sales $ 1,273,659 $ 1,220,003 $ 2,376,571 $ 2,284,760 |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Summary of Financial Information by Segment | The Company’s segment results are as follows: Second Quarter First Half (in thousands) 2019 2018 2019 2018 Net sales: Nonalcoholic Beverages (1) $ 1,238,885 $ 1,192,282 $ 2,311,112 $ 2,232,704 All Other 94,942 93,398 182,857 179,997 Eliminations (2) (60,168 ) (65,677 ) (117,398 ) (127,941 ) Consolidated net sales $ 1,273,659 $ 1,220,003 $ 2,376,571 $ 2,284,760 Income (loss) from operations: Nonalcoholic Beverages $ 57,724 $ 16,089 $ 72,365 $ (6,656 ) All Other 9,490 3,590 15,003 7,338 Consolidated income from operations $ 67,214 $ 19,679 $ 87,368 $ 682 Depreciation and amortization: Nonalcoholic Beverages $ 42,568 $ 44,220 $ 85,919 $ 89,045 All Other 2,488 2,467 4,909 4,862 Consolidated depreciation and amortization $ 45,056 $ 46,687 $ 90,828 $ 93,907 (1) The Company historically presented consideration paid to customers under certain contractual arrangements for exclusive distribution rights and sponsorship privileges as a marketing expense within SD&A expenses. The Company has now determined such amounts should be presented as a reduction to net sales and has revised the presentation of previously issued financial statements to correct for this error. Net sales and SD&A expenses were revised by $7.3 million in the second quarter of 2018 and $14.6 million in the first half of 2018. See Note 3 to the condensed consolidated financial statements for additional information. (2) 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 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic Net Loss Per Share and Diluted Net Loss Per Share | The following table sets forth the computation of basic net income (loss) per share and diluted net income (loss) per share under the two-class method: Second Quarter First Half (in thousands, except per share data) 2019 2018 2019 2018 Numerator for basic and diluted net income (loss) per Common Stock and Class B Common Stock share: Net income (loss) attributable to Coca-Cola Consolidated, Inc. $ 15,370 $ (3,933 ) $ 8,539 $ (18,118 ) Less dividends: Common Stock 1,785 1,785 3,570 3,570 Class B Common Stock 558 553 1,112 1,101 Total undistributed earnings (losses) $ 13,027 $ (6,271 ) $ 3,857 $ (22,789 ) Second Quarter First Half (in thousands, except per share data) 2019 2018 2019 2018 Common Stock undistributed earnings (losses) – basic $ 9,925 $ (4,787 ) $ 2,941 $ (17,411 ) Class B Common Stock undistributed earnings (losses) – basic 3,102 (1,484 ) 916 (5,378 ) Total undistributed earnings (losses) – basic $ 13,027 $ (6,271 ) $ 3,857 $ (22,789 ) Common Stock undistributed earnings (losses) – diluted $ 9,874 $ (4,787 ) $ 2,925 $ (17,411 ) Class B Common Stock undistributed earnings (losses) – diluted 3,153 (1,484 ) 932 (5,378 ) Total undistributed earnings (losses) – diluted $ 13,027 $ (6,271 ) $ 3,857 $ (22,789 ) Numerator for basic net income (loss) per Common Stock share: Dividends on Common Stock $ 1,785 $ 1,785 $ 3,570 $ 3,570 Common Stock undistributed earnings (losses) – basic 9,925 (4,787 ) 2,941 (17,411 ) Numerator for basic net income (loss) per Common Stock share $ 11,710 $ (3,002 ) $ 6,511 $ (13,841 ) Numerator for basic net income (loss) per Class B Common Stock share: Dividends on Class B Common Stock $ 558 $ 553 $ 1,112 $ 1,101 Class B Common Stock undistributed earnings (losses) – basic 3,102 (1,484 ) 916 (5,378 ) Numerator for basic net income (loss) per Class B Common Stock share $ 3,660 $ (931 ) $ 2,028 $ (4,277 ) Numerator for diluted net income (loss) per Common Stock share: Dividends on Common Stock $ 1,785 $ 1,785 $ 3,570 $ 3,570 Dividends on Class B Common Stock assumed converted to Common Stock 558 553 1,112 1,101 Common Stock undistributed earnings (losses) – diluted 13,027 (6,271 ) 3,857 (22,789 ) Numerator for diluted net income (loss) per Common Stock share $ 15,370 $ (3,933 ) $ 8,539 $ (18,118 ) Numerator for diluted net income (loss) per Class B Common Stock share: Dividends on Class B Common Stock $ 558 $ 553 $ 1,112 $ 1,101 Class B Common Stock undistributed earnings (losses) – diluted 3,153 (1,484 ) 932 (5,378 ) Numerator for diluted net income (loss) per Class B Common Stock share $ 3,711 $ (931 ) $ 2,044 $ (4,277 ) Denominator for basic net income (loss) per Common Stock and Class B Common Stock share: Common Stock weighted average shares outstanding – basic 7,141 7,141 7,141 7,141 Class B Common Stock weighted average shares outstanding – basic 2,232 2,213 2,225 2,206 Denominator for diluted net income (loss) 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) 9,421 9,354 9,415 9,347 Class B Common Stock weighted average shares outstanding – diluted 2,280 2,213 2,274 2,206 Basic net income (loss) per share: Common Stock $ 1.64 $ (0.42 ) $ 0.91 $ (1.94 ) Class B Common Stock $ 1.64 $ (0.42 ) $ 0.91 $ (1.94 ) Diluted net income (loss) per share: Common Stock $ 1.64 $ (0.42 ) $ 0.91 $ (1.94 ) Class B Common Stock $ 1.63 $ (0.42 ) $ 0.90 $ (1.94 ) NOTES TO TABLE (1) For purposes of the diluted net income (loss) per share computation for Common Stock, all shares of Class B Common Stock are assumed to be converted; therefore, 100% of undistributed losses is allocated to Common Stock. (2) For purposes of the diluted net income (loss) per share computation for Class B Common Stock, weighted average shares of Class B Common Stock are assumed to be outstanding for the entire period and not converted. (3) For periods presented during which the Company has net income, the denominator for diluted net income per share for Common Stock and Class B Common Stock included the dilutive effect of shares relative to the Long-Term Performance Equity Plan and Long-Term Performance Equity Plan and Long-Term Performance Equity Plan and (4) The Company does not have anti-dilutive shares. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consisted of the following: (in thousands) June 30, 2019 December 30, 2018 Finished products $ 154,669 $ 135,561 Manufacturing materials 38,033 39,840 Plastic shells, plastic pallets and other inventories 38,196 34,632 Total inventories $ 230,898 $ 210,033 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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) June 30, 2019 December 30, 2018 Repair parts $ 27,821 $ 26,846 Prepaid marketing 7,755 6,097 Prepaid software 6,858 6,553 Current portion of income taxes 6,517 6,637 Prepayments for sponsorship contracts 5,516 7,557 Other prepaid expenses and other current assets 17,860 16,990 Total prepaid expenses and other current assets $ 72,327 $ 70,680 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Principal Categories and Estimated Useful Lives of Property, Plant and Equipment, Net | The principal categories and estimated useful lives of property, plant and equipment, net were as follows: (in thousands) June 30, 2019 December 30, 2018 Estimated Useful Lives Land $ 77,949 $ 78,242 Buildings 220,608 218,846 8-50 years Machinery and equipment 333,795 328,034 5-20 years Transportation equipment 384,642 372,895 4-20 years Furniture and fixtures 90,812 89,439 3-10 years Cold drink dispensing equipment 495,458 491,161 5-17 years Leasehold and land improvements 134,435 132,837 5-20 years Software for internal use 122,882 122,604 3-10 years Construction in progress 17,929 15,142 Total property, plant and equipment, at cost 1,878,510 1,849,200 Less: Accumulated depreciation and amortization 916,108 858,668 Property, plant and equipment, net $ 962,402 $ 990,532 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Summary of Weighted Average Remaining Lease Term and Weighted Average Discount Rate for Population of Leases | Following is a summary of the weighted average remaining lease term and weighted average discount rate for the Company’s population of leases as of June 30, 2019: Operating Leases Financing Leases Weighted average remaining lease term 8.8 years 5.0 years Weighted average discount rate 4.0 % 5.8 % |
Summary of Balances Related to Lease Portfolio within Condensed Consolidated Statement of Operations | Following is a summary of balances related to the Company’s lease portfolio within the Company’s condensed consolidated statement of operations for the second quarter and first half of 2019: (in thousands) Second Quarter 2019 First Half 2019 Cost of sales impact: Operating leases costs $ 1,342 $ 2,683 Short-term and variable leases 2,317 4,579 Depreciation expense from financing leases (1) 354 707 Total cost of sales impact $ 4,013 $ 7,969 Selling, delivery and administrative expenses impact: Operating leases costs $ 3,026 $ 5,922 Short-term and variable leases 779 1,838 Depreciation expense from financing leases (1) 1,137 2,276 Total selling, delivery and administrative expenses impact $ 4,942 $ 10,036 Interest expense, net impact: Interest payments on financing lease obligations (2) $ 715 $ 1,417 Total interest expense, net impact $ 715 $ 1,417 Total lease cost $ 9,670 $ 19,422 (1) During the second quarter of 2018, the Company had depreciation expense from capital leases of $0.3 million and $1.2 million in cost of sales and SD&A expenses, respectively. During the first half of 2018, the Company had depreciation expense from capital leases of $0.7 million and $2.3 million in cost of sales and SD&A expenses, respectively. (2) The Company had interest payments on capital lease obligations of $0.9 million during the second quarter of 2018 and $1.8 million during the first half of 2018. |
Summary of Future Minimum Lease Payments For Noncancelable Operating And Financing Leases | Following is a summary of future minimum lease payments for all noncancelable operating leases and financing leases as of June 30, 2019 : (in thousands) Operating Leases Financing Total Remainder of 2019 $ 8,751 $ 5,222 $ 13,973 2020 18,652 10,611 29,263 2021 16,658 6,215 22,873 2022 13,551 2,694 16,245 2023 11,698 2,750 14,448 Thereafter 54,384 8,214 62,598 Total minimum lease payments including interest $ 123,694 $ 35,706 $ 159,400 Less: Amounts representing interest 21,119 4,505 25,624 Present value of minimum lease principal payments 102,575 31,201 133,776 Less: Current portion of lease liabilities - operating and financing leases 14,771 9,019 23,790 Noncurrent portion of lease liabilities - operating and financing leases $ 87,804 $ 22,182 $ 109,986 |
Summary of Future Minimum Lease Payments For Noncancelable Operating And Capital Leases | Following is a summary of future minimum lease payments for all noncancelable operating leases and capital leases as of December 30, 2018: (in thousands) Operating Leases Capital Total 2019 $ 14,146 $ 10,434 $ 24,580 2020 13,526 10,613 24,139 2021 12,568 6,218 18,786 2022 11,161 2,697 13,858 2023 10,055 2,753 12,808 Thereafter 33,805 8,106 41,911 Total minimum lease payments including interest $ 95,261 $ 40,821 $ 136,082 Less: Amounts representing interest 5,573 Present value of minimum lease principal payments 35,248 Less: Current portion of lease liabilities - capital leases 8,617 Noncurrent portion of lease liabilities - capital leases $ 26,631 |
Summary of Balances Related to Lease Portfolio within Condensed Consolidated Statement of Cash Flow | Following is a summary of balances related to the Company’s lease portfolio within the Company’s condensed consolidated statements of cash flows for the first half of 2019: (in thousands) First Half 2019 Cash flows from operating activities impact: Operating leases $ 8,515 Interest payments on financing lease obligations (1) 1,417 Total cash flows from operating activities impact $ 9,932 Cash flows from financing activities: Principal payments on financing lease obligations (1) $ 4,261 Total cash flows from financing activities impact $ 4,261 (1) During the first half of 2018, the Company had principal payments on capital lease obligations of $4.0 million and interest payments on capital lease obligations of $1.8 millio |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Reconciliation of Activity for Goodwill | A reconciliation of the activity for goodwill for the first half of 2019 and the first half of 2018 is as follows: First Half (in thousands) 2019 2018 Beginning balance - goodwill $ 165,903 $ 169,316 Measurement period adjustments (1) - 1,583 Ending balance - goodwill $ 165,903 $ 170,899 (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 distribution territories acquired or exchanged by the Company in April 2017 and October 2017 as part of the System Transformation. All final post-closing adjustments for these transactions were completed during 2018. |
Distribution Agreements, Net (T
Distribution Agreements, Net (Tables) - Distribution Agreements [Member] | 6 Months Ended |
Jun. 30, 2019 | |
Other Identifiable Intangible Assets Net | Distribution agreements, net, which are amortized on a straight-line basis and have an estimated useful life of 10 to 40 years, consisted of the following: (in thousands) June 30, 2019 December 30, 2018 Distribution agreements at cost $ 950,549 $ 950,559 Less: Accumulated amortization (62,311 ) (50,176 ) Distribution agreements, net $ 888,238 $ 900,383 |
Reconciliation of Activity for Other Identifiable Intangible Assets Net | A reconciliation of the activity for distribution agreements, net for the first half of 2019 and the first half of 2018 is as follows: First Half (in thousands) 2019 2018 Beginning balance - distribution agreements, net $ 900,383 $ 913,352 Other distribution agreements (10 ) - Measurement period adjustment (1) - 5,100 Additional accumulated amortization (12,135 ) (11,856 ) Ending balance - distribution agreements, net $ 888,238 $ 906,596 (1) |
Customer Lists and Other Iden_2
Customer Lists and Other Identifiable Intangible Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Customer Lists and Other Identifiable Intangible Assets [Member] | |
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 5 to 12 years, consisted of the following: (in thousands) June 30, 2019 December 30, 2018 Customer lists and other identifiable intangible assets at cost $ 25,288 $ 25,288 Less: Accumulated amortization (9,726 ) (8,806 ) Customer lists and other identifiable intangible assets, net $ 15,562 $ 16,482 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Payables And Accruals [Abstract] | |
Summary of Other Accrued Liabilities | Other accrued liabilities consisted of the following: (in thousands) June 30, 2019 December 30, 2018 Accrued insurance costs $ 42,806 $ 37,916 Current portion of acquisition related contingent consideration 32,131 32,993 Employee and retiree benefit plan accruals 29,821 29,300 Accrued marketing costs 26,712 31,475 Checks and transfers yet to be presented for payment from zero balance cash accounts 13,356 72,701 Accrued taxes (other than income taxes) 9,457 4,577 Commodity hedges at fair market value 7,522 10,305 Current deferred proceeds from Territory Conversion Fee 2,286 2,286 All other accrued expenses 33,010 28,693 Total other accrued liabilities $ 197,101 $ 250,246 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 condensed consolidated statements of operations. Second Quarter First Half (in thousands) Classification of Gain (Loss) 2019 2018 2019 2018 Commodity hedges Cost of sales $ (4,874 ) $ 249 $ (969 ) $ (2,516 ) Commodity hedges Selling, delivery and administrative expenses (66 ) 48 2,649 (154 ) Total gain (loss) $ (4,940 ) $ 297 $ 1,680 $ (2,670 ) |
Summary of Fair Values and Classification in Condensed Consolidated Balance Sheets of Derivative Instruments | The following table summarizes the fair values and classification in the condensed consolidated balance sheets of derivative instruments held by the Company: (in thousands) Balance Sheet Classification June 30, 2019 December 30, 2018 Liabilities: Commodity hedges at fair market value Other accrued liabilities $ 7,522 $ 10,305 Commodity hedges at fair market value Other liabilities 1,103 - Total liabilities $ 8,625 $ 10,305 |
Summary of Gross Derivative Assets and Gross Derivative Liabilities in Condensed Consolidated Balance Sheets | The following table summarizes the Company’s gross derivative assets and gross derivative liabilities in the condensed consolidated balance sheets (in thousands) June 30, 2019 December 30, 2018 Gross derivative assets $ 17,328 $ 28,305 Gross derivative liabilities 25,953 38,610 |
Summary of Outstanding Commodity Derivative Agreements | The following table summarizes the Company’s outstanding commodity derivative agreements: (in thousands) June 30, 2019 December 30, 2018 Notional amount of outstanding commodity derivative agreements $ 167,630 $ 168,388 Latest maturity date of outstanding commodity derivative agreements December 2020 December 2019 |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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: June 30, 2019 Carrying Total Fair Value Fair Value Fair Value (in thousands) Amount Fair Value Level 1 Level 2 Level 3 Assets: Deferred compensation plan assets $ 39,012 $ 39,012 $ 39,012 $ - $ - Liabilities: Deferred compensation plan liabilities 39,012 39,012 39,012 - - Commodity hedging agreements 8,625 8,625 - 8,625 - Nonpublic variable rate debt 369,662 370,000 - 370,000 - Nonpublic fixed rate debt 374,696 380,900 - 380,900 - Public debt securities 347,794 363,800 - 363,800 - Acquisition related contingent consideration 412,450 412,450 - - 412,450 December 30, 2018 Carrying Total Fair Value Fair Value Fair Value (in thousands) Amount Fair Value Level 1 Level 2 Level 3 Assets: Deferred compensation plan assets $ 33,160 $ 33,160 $ 33,160 $ - $ - Liabilities: Deferred compensation plan liabilities 33,160 33,160 33,160 - - Commodity hedging agreements 10,305 10,305 - 10,305 - Nonpublic variable rate debt 372,074 372,500 - 372,500 - Nonpublic fixed rate debt 274,717 261,200 - 261,200 - Public debt securities 457,612 455,400 - 455,400 - Acquisition related contingent consideration 382,898 382,898 - - 382,898 |
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: Second Quarter First Half (in thousands) 2019 2018 2019 2018 Beginning balance - Level 3 liability $ 393,007 $ 368,804 $ 382,898 $ 381,291 Measurement period adjustments (1) - 3,151 - 2,092 Payments of acquisition related contingent consideration (6,599 ) (5,381 ) (12,836 ) (11,263 ) Reclassification to current payables (3,180 ) (1,180 ) (880 ) (1,540 ) Increase in fair value 29,222 9,143 43,268 3,957 Ending balance - Level 3 liability $ 412,450 $ 374,537 $ 412,450 $ 374,537 (1) |
Pension and Postretirement Be_2
Pension and Postretirement Benefit Obligations (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Net Periodic Pension Cost | The components of net periodic pension cost were as follows: Second Quarter First Half (in thousands) 2019 2018 2019 2018 Service cost $ 1,206 $ 1,413 $ 2,413 $ 2,825 Interest cost 3,062 2,856 6,125 5,712 Expected return on plan assets (2,574 ) (3,852 ) (5,148 ) (7,704 ) Recognized net actuarial loss 900 933 1,801 1,866 Amortization of prior service cost 7 6 12 12 Net periodic pension cost $ 2,601 $ 1,356 $ 5,203 $ 2,711 |
Components of Net Periodic Postretirement Benefit Cost | The components of net periodic postretirement benefit cost were as follows: Second Quarter First Half (in thousands) 2019 2018 2019 2018 Service cost $ 389 $ 503 $ 778 $ 1,005 Interest cost 693 696 1,386 1,392 Recognized net actuarial loss 195 499 391 998 Amortization of prior service cost (322 ) (462 ) (646 ) (924 ) Net periodic postretirement benefit cost $ 955 $ 1,236 $ 1,909 $ 2,471 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Other Liabilities | Other liabilities consisted of the following: (in thousands) June 30, 2019 December 30, 2018 Noncurrent portion of acquisition related contingent consideration $ 380,319 $ 349,905 Accruals for executive benefit plans 134,753 126,103 Noncurrent deferred proceeds from Territory Conversion Fee 84,020 85,163 Noncurrent deferred proceeds from Legacy Facilities Credit 29,969 30,369 Other 12,495 17,595 Total other liabilities $ 641,556 $ 609,135 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Debt | Following is a summary of the Company’s debt: (in thousands) Maturity Date Interest Rate Interest Paid Public or Nonpublic June 30, 2019 December 30, 2018 Senior notes (1) 4/15/2019 7.00% Semi-annually Public $ - $ 110,000 Term loan facility (1) 6/7/2021 Variable Varies Nonpublic 270,000 292,500 Senior notes 2/27/2023 3.28% Semi-annually Nonpublic 125,000 125,000 Revolving credit facility (2) 6/8/2023 Variable Varies Nonpublic 100,000 80,000 Senior notes 11/25/2025 3.80% Semi-annually Public 350,000 350,000 Senior notes 10/10/2026 3.93% Quarterly Nonpublic 100,000 - Senior notes 3/21/2030 3.96% Quarterly Nonpublic 150,000 150,000 Unamortized discount on senior notes (3) 4/15/2019 - (78 ) Unamortized discount on senior notes (3) 11/25/2025 (56 ) (61 ) Debt issuance costs (2,792 ) (2,958 ) Long-term debt $ 1,092,152 $ 1,104,403 (1) (2) The Company’s revolving credit facility has an aggregate maximum borrowing capacity of $500 million, which may be increased at the Company’s option to $750 million, subject to obtaining commitments from the lenders and satisfying other conditions specified in the credit agreement. The Company currently believes all banks participating in the revolving credit facility have the ability to and will meet any funding requests from the Company. (3) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Company's Purchases from Manufacturing Cooperatives | The following table summarizes the Company’s purchases from these manufacturing cooperatives: Second Quarter First Half (in thousands) 2019 2018 2019 2018 Purchases from Southeastern $ 36,614 $ 34,797 $ 70,940 $ 63,966 Purchases from SAC 39,993 41,084 77,439 79,160 Total purchases from manufacturing cooperatives $ 76,607 $ 75,881 $ 148,379 $ 143,126 |
Capital Transactions (Tables)
Capital Transactions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Summary of Awards | A summary of the awards issued in 2019 and 2018 is as follows: Fiscal Year 2019 2018 Date of approval for award March 5, 2019 March 6, 2018 Fiscal year of service covered by award 2018 2017 Shares settled in cash to satisfy tax withholding obligations 15,476 16,504 Increase in Class B Common Stock shares outstanding 19,224 20,296 Total Class B Common Stock awarded 34,700 36,800 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Summary of Accumulated Other Comprehensive (Loss) | A summary of AOCI(L) for the second quarter of 2019 and the second quarter of 2018 is as follows: (in thousands) March 31, 2019 Pre-tax Activity Tax Effect June 30, 2019 Net pension activity: Actuarial loss $ (72,011 ) $ 900 $ (221 ) $ (71,332 ) Prior service costs (20 ) 7 (2 ) (15 ) Net postretirement benefits activity: Actuarial loss (4,754 ) 195 (48 ) (4,607 ) Prior service costs 107 (322 ) 79 (136 ) Foreign currency translation adjustment (9 ) 7 (2 ) (4 ) Reclassification of stranded tax effects (19,720 ) - - (19,720 ) Total $ (96,407 ) $ 787 $ (194 ) $ (95,814 ) (in thousands) April 1, 2018 Pre-tax Activity Tax Effect July 1, 2018 Net pension activity: Actuarial loss $ (77,915 ) $ 933 $ (230 ) $ (77,212 ) Prior service costs (39 ) 6 (1 ) (34 ) Net postretirement benefits activity: Actuarial loss (16,922 ) 499 (124 ) (16,547 ) Prior service costs 1,396 (462 ) 114 1,048 Foreign currency translation adjustment 17 (12 ) 3 8 Total $ (93,463 ) $ 964 $ (238 ) $ (92,737 ) A summary of AOCI(L) for the first half of 2019 and the first half of 2018 is as follows: (in thousands) December 30, 2018 Pre-tax Activity Tax Effect June 30, 2019 Net pension activity: Actuarial loss $ (72,690 ) $ 1,801 $ (443 ) $ (71,332 ) Prior service costs (24 ) 12 (3 ) (15 ) Net postretirement benefits activity: Actuarial loss (4,902 ) 391 (96 ) (4,607 ) Prior service costs 351 (646 ) 159 (136 ) Foreign currency translation adjustment - (3 ) (1 ) (4 ) Reclassification of stranded tax effects - - (19,720 ) (19,720 ) Total $ (77,265 ) $ 1,555 $ (20,104 ) $ (95,814 ) (in thousands) December 31, 2017 Pre-tax Activity Tax Effect July 1, 2018 Net pension activity: Actuarial loss $ (78,618 ) $ 1,866 $ (460 ) $ (77,212 ) Prior service costs (43 ) 12 (3 ) (34 ) Net postretirement benefits activity: Actuarial loss (17,299 ) 998 (246 ) (16,547 ) Prior service costs 1,744 (924 ) 228 1,048 Foreign currency translation adjustment 14 (8 ) 2 8 Total $ (94,202 ) $ 1,944 $ (479 ) $ (92,737 ) |
Summary of Impact of Accumulated Other Comprehensive Income (Loss) on Statement of Operations | A summary of the impact of AOCI(L) on certain statements of operations line items is as follows: Second Quarter 2019 (in thousands) Net Pension Activity Net Benefits Activity Foreign Currency Translation Adjustment Total Cost of sales $ 266 $ (66 ) $ - $ 200 Selling, delivery and administrative expenses 641 (61 ) 7 587 Subtotal pre-tax 907 (127 ) 7 787 Income tax expense 223 (31 ) 2 194 Total after tax effect $ 684 $ (96 ) $ 5 $ 593 Second Quarter 2018 (in thousands) Net Pension Activity Net Benefits Activity Foreign Currency Translation Adjustment Total Cost of sales $ 215 $ 7 $ - $ 222 Selling, delivery and administrative expenses 724 30 (12 ) 742 Subtotal pre-tax 939 37 (12 ) 964 Income tax expense 231 10 (3 ) 238 Total after tax effect $ 708 $ 27 $ (9 ) $ 726 First Half 2019 (in thousands) Net Pension Activity Net Benefits Activity Foreign Currency Translation Adjustment Total Cost of sales $ 529 $ (133 ) $ - $ 396 Selling, delivery and administrative expenses 1,284 (122 ) (3 ) 1,159 Subtotal pre-tax 1,813 (255 ) (3 ) 1,555 Income tax expense 446 (63 ) 1 384 Total after tax effect $ 1,367 $ (192 ) $ (4 ) $ 1,171 First Half 2018 (in thousands) Net Pension Activity Net Benefits Activity Foreign Currency Translation Adjustment Total Cost of sales $ 431 $ 13 $ - $ 444 Selling, delivery and administrative expenses 1,447 61 (8 ) 1,500 Subtotal pre-tax 1,878 74 (8 ) 1,944 Income tax expense 463 18 (2 ) 479 Total after tax effect $ 1,415 $ 56 $ (6 ) $ 1,465 |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Summary of Changes in Current Assets and Current Liabilities Affecting Cash Flows | Changes in current assets and current liabilities affecting cash flows were as follows: First Half (in thousands) 2019 2018 Accounts receivable, trade, net $ (20,374 ) $ (60,592 ) Accounts receivable from The Coca-Cola Company (23,273 ) (7,586 ) Accounts receivable, other (8,199 ) 9,923 Inventories (20,865 ) (38,455 ) Prepaid expenses and other current assets (2,408 ) 11,565 Accounts payable, trade 32,761 12,767 Accounts payable to The Coca-Cola Company 28,237 60,857 Other accrued liabilities (52,688 ) 13,609 Accrued compensation (10,256 ) (18,160 ) Accrued interest payable (1,777 ) (55 ) Change in current assets less current liabilities (exclusive of acquisitions) $ (78,842 ) $ (16,127 ) |
Significant Accounting Polici_3
Significant Accounting Policies and New Accounting Pronouncements - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Accounting Policies [Abstract] | |
Cumulative effect adjustment increase in retained earnings | $ 19.7 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Dec. 31, 2017 | Dec. 30, 2018 | |
Related Party Transaction [Line Items] | ||||
Payment of acquisition related contingent consideration | $ 12,836 | $ 11,263 | ||
Accounts receivable from The Coca-Cola Company | 68,188 | $ 44,915 | ||
Principal balance outstanding under lease | $ 31,201 | |||
Legacy Facilities Credit [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amortization period as reduction to cost of sales | 40 years | |||
The Coca-Cola Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Percentage of interest held in outstanding common stock by The Coca-Cola Company | 27.00% | |||
Voting power of stock held by related party | 5.00% | |||
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 | |||
CCR [Member] | Comprehensive Beverage Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Payment of acquisition related contingent consideration | $ 12,800 | 11,300 | ||
Southeastern [Member] | Other Assets [Member] | ||||
Related Party Transaction [Line Items] | ||||
Equity investments | 23,500 | 23,600 | ||
SAC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Proceeds from management fees received from SAC | 4,500 | 4,600 | ||
SAC [Member] | Other Assets [Member] | ||||
Related Party Transaction [Line Items] | ||||
Equity investments | 8,200 | 8,200 | ||
CCBSS [Member] | ||||
Related Party Transaction [Line Items] | ||||
Accounts receivable from The Coca-Cola Company | 7,300 | 10,400 | ||
Administrative fees due to CCBSS | 1,000 | 1,500 | ||
CONA [Member] | ||||
Related Party Transaction [Line Items] | ||||
Service fees | 11,500 | $ 10,200 | ||
CONA [Member] | Other Assets [Member] | ||||
Related Party Transaction [Line Items] | ||||
Equity investments | $ 8,500 | 8,000 | ||
Beacon Investment Corporation [Member] | ||||
Related Party Transaction [Line Items] | ||||
Lease expiration date | Dec. 31, 2021 | |||
Principal balance outstanding under lease | $ 8,400 | 9,900 | ||
HLP, SPC & Adjacent Sales Facility [Member] | ||||
Related Party Transaction [Line Items] | ||||
Lease expiration date | Dec. 31, 2020 | |||
Principal balance outstanding under lease | $ 6,300 | $ 8,100 |
Related Party Transactions - Su
Related Party Transactions - Summary of Significant Transactions between Company and The Coca-Cola Company (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Related Party Transaction [Line Items] | ||||
Cold drink equipment | $ 3,789 | |||
The Coca-Cola Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Concentrate, syrup, sweetener and other purchases | $ 344,841 | $ 328,689 | $ 611,484 | 571,157 |
Customer marketing programs | 39,221 | 41,475 | 72,513 | 76,057 |
Cold drink equipment parts | 7,067 | 8,089 | 14,049 | 14,230 |
Marketing funding support payments | 26,311 | 22,656 | 49,023 | 42,693 |
Fountain delivery and equipment repair fees | 9,885 | 10,353 | 20,634 | 19,700 |
Presence marketing funding support on the Company’s behalf | 4,502 | 4,614 | 4,937 | 5,095 |
Facilitating the distribution of certain brands and packages to other Coca-Cola bottlers | $ 1,351 | 4,256 | $ 2,350 | 8,124 |
Cold drink equipment | $ 3,789 | $ 3,789 |
Related Party Transactions - _2
Related Party Transactions - Summary of Liability to Estimated Fair Value of Contingent Consideration (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 30, 2018 |
Related Party Transaction [Line Items] | ||
Current portion of acquisition related contingent consideration | $ 32,131 | $ 32,993 |
Noncurrent portion of acquisition related contingent consideration | 380,319 | 349,905 |
CCR [Member] | Comprehensive Beverage Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Current portion of acquisition related contingent consideration | 32,131 | 32,993 |
Noncurrent portion of acquisition related contingent consideration | 380,319 | 349,905 |
Total acquisition related contingent consideration | $ 412,450 | $ 382,898 |
Related Party Transactions - _3
Related Party Transactions - Summary of Rental Payments Related to Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Beacon Investment Corporation [Member] | ||||
Related Party Transaction [Line Items] | ||||
Rental payments related to leases | $ 1,151 | $ 1,110 | $ 2,261 | $ 2,236 |
HLP, SPC & Adjacent Sales Facility [Member] | ||||
Related Party Transaction [Line Items] | ||||
Rental payments related to leases | $ 1,081 | $ 1,049 | $ 2,161 | $ 2,098 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018USD ($) | Jun. 30, 2019USD ($)Category | Jul. 01, 2018USD ($) | Dec. 30, 2018USD ($) | |
Revenue From Contract With Customer [Line Items] | ||||
Description of payment from customers | within 30 days from the date of sale | |||
Number of sales | Category | 2 | |||
Reserve for customer return | $ 3.6 | $ 2.3 | ||
Bottle/Can Sales [Member] | Post-Mix and Other [Member] | ||||
Revenue From Contract With Customer [Line Items] | ||||
Sales return estimated percentage | 1.00% | |||
Distribution Rights and Sponsorship Privileges [Member] | ||||
Revenue From Contract With Customer [Line Items] | ||||
Impact to net sales and SD&A expenses | $ 7.3 | $ 14.6 | ||
Point in Time Net Sales [Member] | ||||
Revenue From Contract With Customer [Line Items] | ||||
Sales percentage | 96.00% | 97.00% |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue from Contracts with Customers (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 1,273,659 | $ 1,220,003 | $ 2,376,571 | $ 2,284,760 |
Point in Time Net Sales [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 1,227,977 | 1,183,083 | 2,288,248 | 2,214,891 |
Point in Time Net Sales [Member] | Nonalcoholic [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 1,227,977 | 1,183,083 | 2,288,248 | 2,214,891 |
Over Time Net Sales [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 45,682 | 36,920 | 88,323 | 69,869 |
Over Time Net Sales [Member] | Nonalcoholic [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 10,908 | 9,199 | 22,864 | 17,813 |
Over Time Net Sales [Member] | Other - Over Time [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 34,774 | $ 27,721 | $ 65,459 | $ 52,056 |
Segments - Additional Informati
Segments - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2019Segment | |
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 | 6 Months Ended | |||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | ||
Net sales: | |||||
Net sales | $ 1,273,659 | $ 1,220,003 | $ 2,376,571 | $ 2,284,760 | |
Income (loss) from operations: | |||||
Income (loss) from operations | 67,214 | 19,679 | 87,368 | 682 | |
Depreciation and amortization: | |||||
Depreciation and Amortization | 45,056 | 46,687 | 90,828 | 93,907 | |
Operating Segments [Member] | Nonalcoholic Beverages [Member] | |||||
Net sales: | |||||
Net sales | [1] | 1,238,885 | 1,192,282 | 2,311,112 | 2,232,704 |
Income (loss) from operations: | |||||
Income (loss) from operations | 57,724 | 16,089 | 72,365 | (6,656) | |
Depreciation and amortization: | |||||
Depreciation and Amortization | 42,568 | 44,220 | 85,919 | 89,045 | |
Operating Segments [Member] | All Other [Member] | |||||
Net sales: | |||||
Net sales | 94,942 | 93,398 | 182,857 | 179,997 | |
Income (loss) from operations: | |||||
Income (loss) from operations | 9,490 | 3,590 | 15,003 | 7,338 | |
Depreciation and amortization: | |||||
Depreciation and Amortization | 2,488 | 2,467 | 4,909 | 4,862 | |
Eliminations [Member] | |||||
Net sales: | |||||
Net sales | [2] | $ (60,168) | $ (65,677) | $ (117,398) | $ (127,941) |
[1] | The Company historically presented consideration paid to customers under certain contractual arrangements for exclusive distribution rights and sponsorship privileges as a marketing expense within SD&A expenses. The Company has now determined such amounts should be presented as a reduction to net sales and has revised the presentation of previously issued financial statements to correct for this error. Net sales and SD&A expenses were revised by $7.3 million in the second quarter of 2018 and $14.6 million in the first half of 2018. See Note 3 to the condensed consolidated financial statements for additional information. | ||||
[2] | The entire net sales elimination for each period presented represents net sales from All Other to the Nonalcoholic Beverages segment. Sales between these segments are recognized at either fair market value or cost depending on the nature of the transaction |
Segments - Summary of Financi_2
Segments - Summary of Financial Information by Segment (Parenthetical) (Detail) - Distribution Rights and Sponsorship Privileges [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jul. 01, 2018 | Jul. 01, 2018 | |
Revenue From Contract With Customer [Line Items] | ||
Impact to net sales and SD&A expenses | $ 7.3 | $ 14.6 |
Operating Segments [Member] | Nonalcoholic Beverages [Member] | ||
Revenue From Contract With Customer [Line Items] | ||
Impact to net sales and SD&A expenses | $ 7.3 | $ 14.6 |
Net Income (Loss) Per Share - C
Net Income (Loss) Per Share - Computation of Basic Net Loss Per Share and Diluted Net Loss Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Numerator for basic and diluted net income (loss) per Common Stock and Class B Common Stock share: | ||||
Net income (loss) attributable to Coca-Cola Consolidated, Inc. | $ 15,370 | $ (3,933) | $ 8,539 | $ (18,118) |
Less dividends: | ||||
Dividends on Common Stock | 1,785 | 1,785 | 3,570 | 3,570 |
Total undistributed earnings (losses) – basic | 13,027 | (6,271) | 3,857 | (22,789) |
Total undistributed earnings (losses) – diluted | 13,027 | (6,271) | 3,857 | (22,789) |
Numerator for basic net income (loss) per Common Stock share: | ||||
Numerator for basic net income (loss) per Common Stock share | 11,710 | (3,002) | 6,511 | (13,841) |
Numerator for diluted net income (loss) per Common Stock share: | ||||
Numerator for diluted net income (loss) per Common Stock share | $ 15,370 | $ (3,933) | $ 8,539 | $ (18,118) |
Denominator for basic net income (loss) per Common share: | ||||
Weighted average number of Common Stock shares outstanding | 7,141 | 7,141 | 7,141 | 7,141 |
Denominator for diluted net income (loss) per Common share: | ||||
Weighted average number of Common Stock shares outstanding – assuming dilution | 9,421 | 9,354 | 9,415 | 9,347 |
Basic net income (loss) per share: | ||||
Common Stock | $ 1.64 | $ (0.42) | $ 0.91 | $ (1.94) |
Diluted net income (loss) per share: | ||||
Common Stock | $ 1.64 | $ (0.42) | $ 0.91 | $ (1.94) |
Class B Common Stock [Member] | ||||
Less dividends: | ||||
Dividends on Common Stock | $ 558 | $ 553 | $ 1,112 | $ 1,101 |
Total undistributed earnings (losses) – basic | 3,102 | (1,484) | 916 | (5,378) |
Total undistributed earnings (losses) – diluted | 3,153 | (1,484) | 932 | (5,378) |
Numerator for basic net income (loss) per Common Stock share: | ||||
Numerator for basic net income (loss) per Common Stock share | 3,660 | (931) | 2,028 | (4,277) |
Numerator for diluted net income (loss) per Common Stock share: | ||||
Numerator for diluted net income (loss) per Common Stock share | $ 3,711 | $ (931) | $ 2,044 | $ (4,277) |
Denominator for basic net income (loss) per Common share: | ||||
Weighted average number of Common Stock shares outstanding | 2,232 | 2,213 | 2,225 | 2,206 |
Denominator for diluted net income (loss) per Common share: | ||||
Weighted average number of Common Stock shares outstanding – assuming dilution | 2,280 | 2,213 | 2,274 | 2,206 |
Basic net income (loss) per share: | ||||
Common Stock | $ 1.64 | $ (0.42) | $ 0.91 | $ (1.94) |
Diluted net income (loss) per share: | ||||
Common Stock | $ 1.63 | $ (0.42) | $ 0.90 | $ (1.94) |
Common Stock [Member] | ||||
Less dividends: | ||||
Total undistributed earnings (losses) – basic | $ 9,925 | $ (4,787) | $ 2,941 | $ (17,411) |
Total undistributed earnings (losses) – diluted | $ 9,874 | $ (4,787) | $ 2,925 | $ (17,411) |
Net Income (Loss) Per Share -_2
Net Income (Loss) Per Share - Computation of Basic Net Loss Per Share and Diluted Net Loss Per Share (Parenthetical) (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Earnings Per Share [Abstract] | ||||
Percentage undistributed earnings (losses) allocated to common stock diluted | 100.00% | 100.00% | 100.00% | 100.00% |
Anti-dilutive shares | 0 | 0 | 0 | 0 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 30, 2018 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 154,669 | $ 135,561 |
Manufacturing materials | 38,033 | 39,840 |
Plastic shells, plastic pallets and other inventories | 38,196 | 34,632 |
Total inventories | $ 230,898 | $ 210,033 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Summary of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 30, 2018 |
Prepaid Expense And Other Assets [Abstract] | ||
Repair parts | $ 27,821 | $ 26,846 |
Prepaid marketing | 7,755 | 6,097 |
Prepaid software | 6,858 | 6,553 |
Current portion of income taxes | 6,517 | 6,637 |
Prepayments for sponsorship contracts | 5,516 | 7,557 |
Other prepaid expenses and other current assets | 17,860 | 16,990 |
Total prepaid expenses and other current assets | $ 72,327 | $ 70,680 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Principal Categories and Estimated Useful Lives of Property, Plant and Equipment, Net (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 30, 2018 | |
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 1,878,510 | $ 1,849,200 |
Less: Accumulated depreciation and amortization | 916,108 | 858,668 |
Property, plant and equipment, net | 962,402 | 990,532 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | 77,949 | 78,242 |
Buildings [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property, plant and equipment, at cost | $ 220,608 | 218,846 |
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 | $ 333,795 | 328,034 |
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 | $ 384,642 | 372,895 |
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 | $ 90,812 | 89,439 |
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 | $ 495,458 | 491,161 |
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 | $ 134,435 | 132,837 |
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 | $ 122,882 | 122,604 |
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 | $ 17,929 | $ 15,142 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Lessee Lease Description [Line Items] | ||
Short-term lease description | Allows the Company to not recognize leases with a contractual term of less than 12 months on the balance sheet. | |
Right of use assets for operating leases | $ 102,151 | $ 88,000 |
Lease liabilities for operating leases | 102,575 | $ 88,200 |
Lessee, operating lease committments, not yet commenced, expense | $ 16,000 | |
Minimum [Member] | ||
Lessee Lease Description [Line Items] | ||
Lessee, operating lease commitments, not yet commenced, lease term | 5 years | |
Maximum [Member] | ||
Lessee Lease Description [Line Items] | ||
Lessee, operating lease commitments, not yet commenced, lease term | 10 years |
Leases - Summary of Weighted Av
Leases - Summary of Weighted Average Remaining Lease Term and Weighted Average Discount Rate for Population of Leases (Detail) | Jun. 30, 2019 |
Leases [Abstract] | |
Operating leases, weighted average remaining lease term | 8 years 9 months 18 days |
Operating leases, weighted average discount rate | 4.00% |
Financing leases, weighted average remaining lease term | 5 years |
Financing leases, weighted average discount rate | 5.80% |
Leases - Summary of Balances Re
Leases - Summary of Balances Related to Lease Portfolio within Condensed Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |||
Lessee Disclosure [Line Items] | ||||||
Total lease cost | $ 9,670 | $ 19,422 | ||||
Cost of Sales [Member] | ||||||
Lessee Disclosure [Line Items] | ||||||
Operating leases costs | 1,342 | 2,683 | ||||
Short-term and variable leases | 2,317 | 4,579 | ||||
Depreciation expense from financing leases | 354 | [1] | $ 300 | 707 | [1] | $ 700 |
Total lease cost | 4,013 | 7,969 | ||||
Selling, Delivery and Administrative Expenses [Member] | ||||||
Lessee Disclosure [Line Items] | ||||||
Operating leases costs | 3,026 | 5,922 | ||||
Short-term and variable leases | 779 | 1,838 | ||||
Depreciation expense from financing leases | 1,137 | [1] | 1,200 | 2,276 | [1] | 2,300 |
Total lease cost | 4,942 | 10,036 | ||||
Interest Expense, Net [Member] | ||||||
Lessee Disclosure [Line Items] | ||||||
Interest payments on financing lease obligations | 715 | [2] | $ 900 | 1,417 | [2] | $ 1,800 |
Total lease cost | $ 715 | $ 1,417 | ||||
[1] | During the second quarter of 2018, the Company had depreciation expense from capital leases of $0.3 million and $1.2 million in cost of sales and SD&A expenses, respectively. During the first half of 2018, the Company had depreciation expense from capital leases of $0.7 million and $2.3 million in cost of sales and SD&A expenses, respectively. | |||||
[2] | The Company had interest payments on capital lease obligations of $0.9 million during the second quarter of 2018 and $1.8 million during the first half of 2018. |
Leases - Summary of Balances _2
Leases - Summary of Balances Related to Lease Portfolio within Condensed Consolidated Statement of Operations (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |||
Cost of Sales [Member] | ||||||
Lessee Disclosure [Line Items] | ||||||
Depreciation expense from capital leases | $ 354 | [1] | $ 300 | $ 707 | [1] | $ 700 |
Selling, Delivery and Administrative Expenses [Member] | ||||||
Lessee Disclosure [Line Items] | ||||||
Depreciation expense from capital leases | 1,137 | [1] | 1,200 | 2,276 | [1] | 2,300 |
Interest Expense, Net [Member] | ||||||
Lessee Disclosure [Line Items] | ||||||
Interest payments on capital lease obligations | $ 715 | [2] | $ 900 | $ 1,417 | [2] | $ 1,800 |
[1] | During the second quarter of 2018, the Company had depreciation expense from capital leases of $0.3 million and $1.2 million in cost of sales and SD&A expenses, respectively. During the first half of 2018, the Company had depreciation expense from capital leases of $0.7 million and $2.3 million in cost of sales and SD&A expenses, respectively. | |||||
[2] | The Company had interest payments on capital lease obligations of $0.9 million during the second quarter of 2018 and $1.8 million during the first half of 2018. |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Lease Payments For Noncancelable Operating And Financing Leases (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 30, 2018 |
Lessee Disclosure [Line Items] | |||
Operating Leases, Remainder of 2019 | $ 8,751 | ||
Operating Leases, 2020 | 18,652 | ||
Operating Leases, 2021 | 16,658 | ||
Operating Leases, 2022 | 13,551 | ||
Operating Leases, 2023 | 11,698 | ||
Operating Leases, Thereafter | 54,384 | ||
Total operating leases including interest | 123,694 | ||
Less: Amounts representing interest | 21,119 | ||
Present value of minimum lease principal payments | 102,575 | $ 88,200 | |
Less: Current portion of lease liabilities - operating leases | 14,771 | ||
Noncurrent portion of lease liabilities - operating leases | 87,804 | ||
Financing Leases, Remainder of 2019 | 5,222 | ||
Financing Leases, 2020 | 10,611 | ||
Financing Leases, 2021 | 6,215 | ||
Financing Leases, 2022 | 2,694 | ||
Financing Leases, 2023 | 2,750 | ||
Financing Leases, Thereafter | 8,214 | ||
Total financing leases including interest | 35,706 | ||
Less: Amounts representing interest | 4,505 | ||
Present value of minimum lease principal payments | 31,201 | ||
Less: Current portion of lease liabilities - financing leases | 9,019 | $ 8,617 | |
Noncurrent portion of lease liabilities - financing leases | 22,182 | $ 26,631 | |
Total Operating and Financing Leases [Member] | |||
Lessee Disclosure [Line Items] | |||
Total future minimum payments due remainder of 2019 | 13,973 | ||
Total future minimum payments due in 2020 | 29,263 | ||
Total future minimum payments due in 2021 | 22,873 | ||
Total future minimum payments due in 2022 | 16,245 | ||
Total future minimum payments due in 2023 | 14,448 | ||
Total future minimum payments due, in Thereafter | 62,598 | ||
Total minimum lease payments including interest | 159,400 | ||
Less: Amounts representing interest | 25,624 | ||
Present value of minimum lease principal payments | 133,776 | ||
Less: Current portion of lease liabilities - operating and financing leases | 23,790 | ||
Noncurrent portion of lease liabilities - operating and financing leases | $ 109,986 |
Leases - Summary of Future Mi_2
Leases - Summary of Future Minimum Lease Payments For Noncancelable Operating And Capital Leases (Detail) $ in Thousands | Dec. 30, 2018USD ($) |
Lessee Disclosure [Line Items] | |
Operating Leases, 2019 | $ 14,146 |
Operating Leases, 2020 | 13,526 |
Operating Leases, 2021 | 12,568 |
Operating Leases, 2022 | 11,161 |
Operating Leases, 2023 | 10,055 |
Operating Leases, Thereafter | 33,805 |
Total Operating Leases | 95,261 |
Capital Leases, 2019 | 10,434 |
Capital Leases, 2020 | 10,613 |
Capital Leases, 2021 | 6,218 |
Capital Leases, 2022 | 2,697 |
Capital Leases, 2023 | 2,753 |
Capital Leases, Thereafter | 8,106 |
Total Capital Leases including interest | 40,821 |
Less: Amounts representing interest | 5,573 |
Present value of minimum lease principal payments | 35,248 |
Less: Current portion of lease liabilities - capital leases | 8,617 |
Noncurrent portion of lease liabilities - capital leases | 26,631 |
Total Capital And Operating Leases [Member] | |
Lessee Disclosure [Line Items] | |
Total future minimum payments due in 2019 | 24,580 |
Total future minimum payments due in 2020 | 24,139 |
Total future minimum payments due in 2021 | 18,786 |
Total future minimum payments due in 2022 | 13,858 |
Total future minimum payments due in 2023 | 12,808 |
Total future minimum payments due, in Thereafter | 41,911 |
Total minimum lease payments including interest | $ 136,082 |
Leases - Summary of Balances _3
Leases - Summary of Balances Related to Lease Portfolio within Condensed Consolidated Statement of Cash Flow (Detail) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | ||
Cash flows from operating activities impact: | |||
Operating leases | $ 8,515 | ||
Interest payments on financing lease obligations | 1,417 | [1] | $ 1,800 |
Total cash flows from operating activities impact | 9,932 | ||
Cash flows from financing activities: | |||
Principal payments on financing lease obligations | 4,261 | [1] | $ 4,000 |
Total cash flows from financing activities impact | $ 4,261 | ||
[1] | During the first half of 2018, the Company had principal payments on capital lease obligations of $4.0 million and interest payments on capital lease obligations of $1.8 millio |
Leases - Summary of Balances _4
Leases - Summary of Balances Related to Lease Portfolio within Condensed Consolidated Statement of Cash Flow (Parenthetical) (Detail) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | [1] | Jul. 01, 2018 | |
Leases [Abstract] | |||
Principal payments on capital lease obligations | $ 4,261 | $ 4,000 | |
Interest payments on capital lease obligations | $ 1,417 | $ 1,800 | |
[1] | During the first half of 2018, the Company had principal payments on capital lease obligations of $4.0 million and interest payments on capital lease obligations of $1.8 millio |
Goodwill - Schedule of Reconcil
Goodwill - Schedule of Reconciliation of Activity for Goodwill (Detail) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | ||
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Beginning balance - goodwill | $ 165,903 | $ 169,316 | |
Goodwill, Measurement period adjustments | [1] | 0 | 1,583 |
Ending balance - goodwill | $ 165,903 | $ 170,899 | |
[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 distribution territories acquired or exchanged by the Company in April 2017 and October 2017 as part of the System Transformation. All final post-closing adjustments for these transactions were completed during 2018. |
Distribution Agreements, Net -
Distribution Agreements, Net - Additional Information (Detail) - Distribution Agreements [Member] | 6 Months Ended |
Jun. 30, 2019 | |
Minimum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Estimated useful life | 10 years |
Maximum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Estimated useful life | 40 years |
Distribution Agreements, Net _2
Distribution Agreements, Net - Other Identifiable Intangible Assets Net (Detail) - Distribution Agreements [Member] - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 30, 2018 | Jul. 01, 2018 | Jan. 01, 2018 |
Finite Lived Intangible Assets [Line Items] | ||||
Distribution agreements at cost | $ 950,549 | $ 950,559 | ||
Less: Accumulated amortization | (62,311) | (50,176) | ||
Total other identifiable intangible assets, net | $ 888,238 | $ 900,383 | $ 906,596 | $ 913,352 |
Distribution Agreements, Net _3
Distribution Agreements, Net - Reconciliation of Activity for Other Identifiable Intangible Assets Net (Detail) - Distribution Agreements [Member] - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | ||
Finite Lived Intangible Assets [Line Items] | |||
Total Other Identifiable Intangible Assets, Beginning Balance | $ 900,383 | $ 913,352 | |
Other distribution agreements | (10) | ||
Measurement period adjustment | [1] | 5,100 | |
Additional accumulated amortization | (12,135) | (11,856) | |
Total Other Identifiable Intangible Assets, Ending Balance | $ 888,238 | $ 906,596 | |
[1] | Measurement period adjustment relates to post-closing adjustments made in accordance with the terms and conditions of the applicable asset purchase agreement for distribution territories acquired by the Company in October 2017 as part of the System Transformation. All final post-closing adjustments for this transaction were completed during 2018. |
Customer Lists and Other Iden_3
Customer Lists and Other Identifiable Intangible Assets, Net - Additional Information (Detail) - Customer Lists and Other Identifiable Intangible Assets [Member] | 6 Months Ended |
Jun. 30, 2019 | |
Minimum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Estimated useful life | 5 years |
Maximum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Estimated useful life | 12 years |
Customer Lists and Other Iden_4
Customer Lists and Other Identifiable Intangible Assets, Net - Other Identifiable Intangible Assets (Detail) - Customer Lists and Other Identifiable Intangible Assets [Member] - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 30, 2018 |
Finite Lived Intangible Assets [Line Items] | ||
Other identifiable intangible assets, cost | $ 25,288 | $ 25,288 |
Less: Accumulated amortization | (9,726) | (8,806) |
Total other identifiable intangible assets, net | $ 15,562 | $ 16,482 |
Other Accrued Liabilities - Sum
Other Accrued Liabilities - Summary of Other Accrued Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 30, 2018 |
Accounts Payable And Accrued Liabilities Current [Abstract] | ||
Accrued insurance costs | $ 42,806 | $ 37,916 |
Current portion of acquisition related contingent consideration | 32,131 | 32,993 |
Employee and retiree benefit plan accruals | 29,821 | 29,300 |
Accrued marketing costs | 26,712 | 31,475 |
Checks and transfers yet to be presented for payment from zero balance cash accounts | 13,356 | 72,701 |
Accrued taxes (other than income taxes) | 9,457 | 4,577 |
Commodity hedges at fair market value | 7,522 | 10,305 |
Current deferred proceeds from Territory Conversion Fee | 2,286 | 2,286 |
All other accrued expenses | 33,010 | 28,693 |
Total other accrued liabilities | $ 197,101 | $ 250,246 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Summary of Pre-Tax Changes in Fair Value (Detail) - Commodity Contract [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain (loss) | $ (4,940) | $ 297 | $ 1,680 | $ (2,670) |
Cost of Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain (loss) | (4,874) | 249 | (969) | (2,516) |
Selling, Delivery and Administrative Expenses [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain (loss) | $ (66) | $ 48 | $ 2,649 | $ (154) |
Derivative Financial Instrume_4
Derivative Financial Instruments - Summary of Fair Values and Classification in Condensed Consolidated Balance Sheets of Derivative Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 30, 2018 |
Liabilities: | ||
Total liabilities | $ 8,625 | $ 10,305 |
Commodity Contract [Member] | Not Designated as Hedging Instruments [Member] | Other Accrued Liabilities [Member] | ||
Liabilities: | ||
Total liabilities | 7,522 | $ 10,305 |
Commodity Contract [Member] | Not Designated as Hedging Instruments [Member] | Other Liabilities [Member] | ||
Liabilities: | ||
Total liabilities | $ 1,103 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Summary of Gross Derivative Assets and Gross Derivative Liabilities in Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 30, 2018 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Gross derivative assets | $ 17,328 | $ 28,305 |
Gross derivative liabilities | $ 25,953 | $ 38,610 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Summary of Outstanding Commodity Derivative Agreements (Detail) - Commodity Hedging Agreements [Member] - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 30, 2018 | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Notional amount of outstanding commodity derivative agreements | $ 167,630,000 | $ 168,388,000 |
Latest maturity date of outstanding commodity derivative agreements | 2020-12 | 2019-12 |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | Dec. 30, 2018 | |
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 | $ 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 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net | $ 0 | $ 0 | $ 0 | $ 0 | |
Amount payable annually under acquisition related contingent consideration arrangements, value, low | 25,000,000 | ||||
Amount payable annually under acquisition related contingent consideration arrangements, value, high | $ 49,000,000 | ||||
System Transformation Transactions [Member] | Maximum [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Estimated useful life | 40 years |
Fair Values of Financial Inst_4
Fair Values of Financial Instruments - Deferred Compensation Plan Commodity Hedging Agreements and Acquisition Related Contingent Consideration (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 |
Liabilities: | ||||||
Commodity hedging agreements | $ 8,625 | $ 10,305 | ||||
Fair Value Level 1 [Member] | ||||||
Assets: | ||||||
Deferred compensation plan assets | 39,012 | 33,160 | ||||
Liabilities: | ||||||
Deferred compensation plan liabilities | 39,012 | 33,160 | ||||
Fair Value Level 2 [Member] | ||||||
Liabilities: | ||||||
Nonpublic variable rate debt | 370,000 | 372,500 | ||||
Nonpublic fixed rate debt | 380,900 | 261,200 | ||||
Public debt securities | 363,800 | 455,400 | ||||
Fair Value Level 2 [Member] | Commodity Contract [Member] | ||||||
Liabilities: | ||||||
Commodity hedging agreements | 8,625 | 10,305 | ||||
Fair Value Level 3 [Member] | ||||||
Liabilities: | ||||||
Acquisition related contingent consideration | 412,450 | $ 393,007 | 382,898 | $ 374,537 | $ 368,804 | $ 381,291 |
Carrying Amount [Member] | ||||||
Assets: | ||||||
Deferred compensation plan assets | 39,012 | 33,160 | ||||
Liabilities: | ||||||
Deferred compensation plan liabilities | 39,012 | 33,160 | ||||
Nonpublic variable rate debt | 369,662 | 372,074 | ||||
Nonpublic fixed rate debt | 374,696 | 274,717 | ||||
Public debt securities | 347,794 | 457,612 | ||||
Acquisition related contingent consideration | 412,450 | 382,898 | ||||
Carrying Amount [Member] | Commodity Contract [Member] | ||||||
Liabilities: | ||||||
Commodity hedging agreements | 8,625 | 10,305 | ||||
Total Fair Value [Member] | ||||||
Assets: | ||||||
Deferred compensation plan assets | 39,012 | 33,160 | ||||
Liabilities: | ||||||
Deferred compensation plan liabilities | 39,012 | 33,160 | ||||
Acquisition related contingent consideration | 412,450 | 382,898 | ||||
Nonpublic variable rate debt | 370,000 | 372,500 | ||||
Nonpublic fixed rate debt | 380,900 | 261,200 | ||||
Public debt securities | 363,800 | 455,400 | ||||
Total Fair Value [Member] | Commodity Contract [Member] | ||||||
Liabilities: | ||||||
Commodity hedging agreements | $ 8,625 | $ 10,305 |
Fair Values of Financial Inst_5
Fair Values of Financial Instruments - Summary of Reconciliation of Acquisition Related Contingent Consideration (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Payments of acquisition related contingent consideration | $ 12,836 | $ 11,263 | |||
Increase in fair value | 43,268 | 3,957 | |||
Level 3 [Member] | |||||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance - Level 3 liability | $ 393,007 | $ 368,804 | 382,898 | 381,291 | |
Measurement period adjustment | [1] | 3,151 | 2,092 | ||
Payments of acquisition related contingent consideration | (6,599) | (5,381) | (12,836) | (11,263) | |
Reclassification to current payables | (3,180) | (1,180) | (880) | (1,540) | |
Increase in fair value | 29,222 | 9,143 | 43,268 | 3,957 | |
Ending balance - Level 3 liability | $ 412,450 | $ 374,537 | $ 412,450 | $ 374,537 | |
[1] | Measurement period adjustments relate to post-closing adjustments made in accordance with the terms and conditions of the applicable asset purchase agreement for distribution territories acquired by the Company in April 2017 and October 2017 as part of the System Transformation. All final post-closing adjustments for these transactions were completed during 2018. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Dec. 30, 2018 | |
Income Tax [Line Items] | |||
Effective income tax rate | 27.00% | 44.60% | |
Effective income tax rate with noncontrolling interest | 32.80% | 42.00% | |
Uncertain tax positions | $ 3,200,000 | $ 3,100,000 | |
Uncertain tax positions that would affect tax rate | 3,200,000 | $ 3,100,000 | |
Change in uncertain tax positions, expected material impact on consolidated condensed financial statements | $ 0 | ||
Earliest Tax Year [Member] | Internal Revenue Service (IRS) [Member] | |||
Income Tax [Line Items] | |||
Tax year open for examination | 2002 | ||
Earliest Tax Year [Member] | State and Local Jurisdiction [Member] | |||
Income Tax [Line Items] | |||
Tax year open for examination | 1998 |
Pension and Postretirement Be_3
Pension and Postretirement Benefit Obligations - Additional Information (Detail) - Pension Plans [Member] | 6 Months Ended |
Jun. 30, 2019USD ($)Benefit_Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Number of company-sponsored pension plans | Benefit_Plan | 2 |
Entity contribution to pension plans during the period | $ 0 |
Minimum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Benefit pension plan, contributions | 1,000,000 |
Maximum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Benefit pension plan, contributions | $ 2,000,000 |
Pension and Postretirement Be_4
Pension and Postretirement Benefit Obligations - Components of Net Periodic Pension Cost (Detail) - Pension Plans [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1,206 | $ 1,413 | $ 2,413 | $ 2,825 |
Interest cost | 3,062 | 2,856 | 6,125 | 5,712 |
Expected return on plan assets | (2,574) | (3,852) | (5,148) | (7,704) |
Recognized net actuarial loss | 900 | 933 | 1,801 | 1,866 |
Amortization of prior service cost | 7 | 6 | 12 | 12 |
Net periodic benefit cost | $ 2,601 | $ 1,356 | $ 5,203 | $ 2,711 |
Pension and Postretirement Be_5
Pension and Postretirement Benefit Obligations - Components of Net Periodic Postretirement Benefit Cost (Detail) - Net Postretirement Benefits Activity [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 389 | $ 503 | $ 778 | $ 1,005 |
Interest cost | 693 | 696 | 1,386 | 1,392 |
Recognized net actuarial loss | 195 | 499 | 391 | 998 |
Amortization of prior service cost | (322) | (462) | (646) | (924) |
Net periodic benefit cost | $ 955 | $ 1,236 | $ 1,909 | $ 2,471 |
Other Liabilities - Summary of
Other Liabilities - Summary of Other Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 30, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Noncurrent portion of acquisition related contingent consideration | $ 380,319 | $ 349,905 |
Accruals for executive benefit plans | 134,753 | 126,103 |
Noncurrent deferred proceeds from Territory Conversion Fee | 84,020 | 85,163 |
Noncurrent deferred proceeds from Legacy Facilities Credit | 29,969 | 30,369 |
Other | 12,495 | 17,595 |
Total other liabilities | $ 641,556 | $ 609,135 |
Debt - Summary of Debt (Detail)
Debt - Summary of Debt (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 30, 2018 | |
Debt Instrument [Line Items] | ||
Debt issuance costs | $ (2,792) | $ (2,958) |
Long-term debt | $ 1,092,152 | 1,104,403 |
Revolving Credit Facility [Member] | Non-public [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Jun. 8, 2023 | |
Line of credit | $ 100,000 | 80,000 |
Interest Rate, Term | Variable | |
Interest Paid | Varies | |
7.00% Senior Notes 4/15/2019 [Member] | Public [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Apr. 15, 2019 | |
Interest Rate | 7.00% | |
Senior Notes | 110,000 | |
Unamortized discount on Senior Notes | (78) | |
Interest Paid | Semi-annually | |
Term Loan Facility [Member] | Non-public [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Jun. 7, 2021 | |
Term Loan Facility | $ 270,000 | 292,500 |
Interest Rate, Term | Variable | |
Interest Paid | Varies | |
3.28% Senior Notes 2/27/2023 [Member] | Non-public [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Feb. 27, 2023 | |
Interest Rate | 3.28% | |
Senior Notes | $ 125,000 | 125,000 |
Interest Paid | Semi-annually | |
3.80% Senior Notes 11/25/2025 [Member] | Public [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Nov. 25, 2025 | |
Interest Rate | 3.80% | |
Senior Notes | $ 350,000 | 350,000 |
Unamortized discount on Senior Notes | $ (56) | (61) |
Interest Paid | Semi-annually | |
3.93% Senior Notes 10/10/2026 [Member] | Non-public [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Oct. 10, 2026 | |
Interest Rate | 3.93% | |
Senior Notes | $ 100,000 | |
Interest Paid | Quarterly | |
3.96% Senior Notes 3/21/2030 [Member] | Non-public [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Mar. 21, 2030 | |
Interest Rate | 3.96% | |
Senior Notes | $ 150,000 | $ 150,000 |
Interest Paid | Quarterly |
Debt - Summary of Debt (Parenth
Debt - Summary of Debt (Parenthetical) (Detail) | Jun. 30, 2019USD ($) |
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% |
Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Aggregate maximum borrowing capacity | $ 500,000,000 |
Line of credit facility maximum borrowing capacity increased amount subject to obtaining commitments | $ 750,000,000 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Apr. 10, 2019 | Jun. 30, 2019 |
Debt Instrument [Line Items] | ||
Debt issued by subsidiaries | $ 0 | |
Guarantees of company debt | $ 0 | |
Senior Unsecured Notes Due in 2026 [Member] | MetLife Investment Advisors LLC and Certain of Its Affiliates [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes, face amount | $ 100,000,000 | |
Debt instrument, interest rate | 3.93% | |
Debt instrument, frequency of periodic payment | quarterly | |
Maturity date of debt instruments | Oct. 10, 2026 | |
Aggregate maximum borrowing capacity | $ 200,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019USD ($)Product | Jul. 01, 2018Product | Dec. 30, 2018USD ($) | |
Loss Contingencies [Line Items] | |||
Letters of credit totaled | $ 35,600,000 | $ 35,600,000 | |
Long-term marketing contractual arrangements | $ 198,000,000 | ||
Southeastern [Member] | |||
Loss Contingencies [Line Items] | |||
Purchase requirements of plastic bottles | 80.00% | ||
SAC [Member] | |||
Loss Contingencies [Line Items] | |||
Cases of finished product obligated to purchase on an annual basis | Product | 17,500,000 | ||
Purchased number of cases finished product from SAC | Product | 14,300,000 | 15,000,000 | |
Debt guarantee for related party | $ 23,900,000 | 23,900,000 | |
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 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Company's Purchases from Manufacturing Cooperatives (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Loss Contingencies [Line Items] | ||||
Total purchases from manufacturing cooperatives | $ 76,607 | $ 75,881 | $ 148,379 | $ 143,126 |
SAC [Member] | ||||
Loss Contingencies [Line Items] | ||||
Total purchases from manufacturing cooperatives | 39,993 | 41,084 | 77,439 | 79,160 |
Southeastern [Member] | ||||
Loss Contingencies [Line Items] | ||||
Total purchases from manufacturing cooperatives | $ 36,614 | $ 34,797 | $ 70,940 | $ 63,966 |
Capital Transactions - Addition
Capital Transactions - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 30, 2008 | Jun. 30, 2019 | Jul. 01, 2018 |
Capital Transactions [Line Items] | |||
Share based compensation | $ 2,045 | $ 1,728 | |
Long-Term Performance Equity Plan [Member] | |||
Capital Transactions [Line Items] | |||
Award settled in cash or shares, average closing prices of shares during trading days of performance period | 20 days | ||
Long-Term Performance Equity Plan [Member] | Selling, Delivery and Administrative Expenses [Member] | |||
Capital Transactions [Line Items] | |||
Share based compensation | $ 6,700 | $ 1,000 | |
Class B Common Stock [Member] | |||
Capital Transactions [Line Items] | |||
Term of performance unit award agreement | 10 years | ||
Performance unit award agreement expiration period | 2018 |
Capital Transactions - Summary
Capital Transactions - Summary of the Awards Each Year (Detail) - Class B Common Stock [Member] - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 01, 2018 | |
Schedule of Capitalization, Equity [Line Items] | ||
Date of approval for award | Mar. 5, 2019 | Mar. 6, 2018 |
Fiscal year of service covered by award | 2018 | 2017 |
Shares settled in cash to satisfy tax withholding obligations | 15,476 | 16,504 |
Increase in Class B Common Stock shares outstanding | 19,224 | 20,296 |
Total Class B Common Stock awarded | 34,700 | 36,800 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Summary of Accumulated Other Comprehensive (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | $ 455,166 | $ 458,907 | ||
Pre-tax Activity | $ 787 | $ 964 | 1,555 | 1,944 |
Tax Effect | (194) | (238) | (20,104) | (479) |
Ending Balance | 467,709 | 443,222 | 467,709 | 443,222 |
Reclassification of Stranded Tax Effects [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (19,720) | |||
Tax Effect | (19,720) | |||
Ending Balance | (19,720) | (19,720) | ||
Foreign Currency Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (9) | 17 | 14 | |
Pre-tax Activity | 7 | (12) | (3) | (8) |
Tax Effect | (2) | 3 | (1) | 2 |
Ending Balance | (4) | 8 | (4) | 8 |
Accumulated Other Comprehensive Loss [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (96,407) | (93,463) | (77,265) | (94,202) |
Ending Balance | (95,814) | (92,737) | (95,814) | (92,737) |
Net Pension Activity [Member] | Actuarial Loss [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (72,011) | (77,915) | (72,690) | (78,618) |
Pre-tax Activity | 900 | 933 | 1,801 | 1,866 |
Tax Effect | (221) | (230) | (443) | (460) |
Ending Balance | (71,332) | (77,212) | (71,332) | (77,212) |
Net Pension Activity [Member] | Prior Service Costs [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (20) | (39) | (24) | (43) |
Pre-tax Activity | 7 | 6 | 12 | 12 |
Tax Effect | (2) | (1) | (3) | (3) |
Ending Balance | (15) | (34) | (15) | (34) |
Net Postretirement Benefits Activity [Member] | Actuarial Loss [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (4,754) | (16,922) | (4,902) | (17,299) |
Pre-tax Activity | 195 | 499 | 391 | 998 |
Tax Effect | (48) | (124) | (96) | (246) |
Ending Balance | (4,607) | (16,547) | (4,607) | (16,547) |
Net Postretirement Benefits Activity [Member] | Prior Service Costs [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | 107 | 1,396 | 351 | 1,744 |
Pre-tax Activity | (322) | (462) | (646) | (924) |
Tax Effect | 79 | 114 | 159 | 228 |
Ending Balance | $ (136) | $ 1,048 | $ (136) | $ 1,048 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Summary of Impact of Accumulated Other Comprehensive Income (Loss) on Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales | $ 837,880 | $ 815,295 | $ 1,551,484 | $ 1,522,411 |
Selling, delivery and administrative expenses | 368,565 | 385,029 | 737,719 | 761,667 |
Subtotal pre-tax | (24,038) | 2,883 | (15,455) | 29,416 |
Income tax expense | (7,182) | 135 | (4,177) | 13,106 |
Total after tax effect | (15,370) | 3,933 | (8,539) | 18,118 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales | 200 | 222 | 396 | 444 |
Selling, delivery and administrative expenses | 587 | 742 | 1,159 | 1,500 |
Subtotal pre-tax | 787 | 964 | 1,555 | 1,944 |
Income tax expense | 194 | 238 | 384 | 479 |
Total after tax effect | 593 | 726 | 1,171 | 1,465 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Foreign Currency Translation Adjustment [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Selling, delivery and administrative expenses | 7 | (12) | (3) | (8) |
Subtotal pre-tax | 7 | (12) | (3) | (8) |
Income tax expense | 2 | (3) | 1 | (2) |
Total after tax effect | 5 | (9) | (4) | (6) |
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 | 266 | 215 | 529 | 431 |
Selling, delivery and administrative expenses | 641 | 724 | 1,284 | 1,447 |
Subtotal pre-tax | 907 | 939 | 1,813 | 1,878 |
Income tax expense | 223 | 231 | 446 | 463 |
Total after tax effect | 684 | 708 | 1,367 | 1,415 |
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 | (66) | 7 | (133) | 13 |
Selling, delivery and administrative expenses | (61) | 30 | (122) | 61 |
Subtotal pre-tax | (127) | 37 | (255) | 74 |
Income tax expense | (31) | 10 | (63) | 18 |
Total after tax effect | $ (96) | $ 27 | $ (192) | $ 56 |
Supplemental Disclosures of C_3
Supplemental Disclosures of Cash Flow Information - Summary of Changes in Current Assets and Current Liabilities Affecting Cash Flows (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jul. 01, 2018 | |
Supplemental Cash Flow Elements [Abstract] | ||
Accounts receivable, trade, net | $ (20,374) | $ (60,592) |
Accounts receivable from The Coca-Cola Company | (23,273) | (7,586) |
Accounts receivable, other | (8,199) | 9,923 |
Inventories | (20,865) | (38,455) |
Prepaid expenses and other current assets | (2,408) | 11,565 |
Accounts payable, trade | 32,761 | 12,767 |
Accounts payable to The Coca-Cola Company | 28,237 | 60,857 |
Other accrued liabilities | (52,688) | 13,609 |
Accrued compensation | (10,256) | (18,160) |
Accrued interest payable | (1,777) | (55) |
Change in current assets less current liabilities (exclusive of acquisitions) | $ (78,842) | $ (16,127) |