Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 21, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ESND | ||
Entity Registrant Name | ESSENDANT INC | ||
Entity Central Index Key | 355,999 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 37,472,971 | ||
Entity Public Float | $ 680 |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Income Statement [Abstract] | |||||
Net sales | $ 5,369,022 | $ 5,363,046 | $ 5,327,205 | [1] | |
Cost of goods sold | 4,609,161 | 4,526,551 | 4,524,676 | [1] | |
Gross profit | 759,861 | 836,495 | 802,529 | [1] | |
Operating expenses: | |||||
Warehousing, marketing and administrative expenses | 629,825 | 675,913 | 595,673 | [1] | |
Defined benefit plan settlement loss | 12,510 | ||||
Impairments of goodwill and intangible assets | 129,338 | 9,034 | [1] | ||
Loss (gain) on disposition of business | 1,461 | (800) | [1] | ||
Operating income | 117,526 | 29,783 | 198,622 | [1] | |
Interest expense | 24,143 | 20,580 | 16,234 | [1] | |
Interest income | (1,272) | (996) | (500) | [1] | |
Income before income taxes | 94,655 | 10,199 | 182,888 | [1] | |
Income tax expense | 30,803 | 54,541 | 70,773 | [1] | |
Net income (loss) | [1] | $ 63,852 | $ (44,342) | $ 112,115 | |
Net income (loss) per share - basic: | |||||
Net income (loss) per share - basic | $ 1.75 | $ (1.18) | $ 2.90 | [1] | |
Average number of common shares outstanding - basic | 36,580 | 37,457 | 38,705 | [1] | |
Net income (loss) per share - diluted: | |||||
Net income (loss) per share - diluted | $ 1.73 | $ (1.18) | $ 2.87 | [1] | |
Average number of common shares outstanding - diluted | 36,918 | 37,457 | 39,130 | [1] | |
Dividends declared per share | $ 0.56 | $ 0.56 | $ 0.56 | [1] | |
[1] | Revised in 2015 for the impact of the changes in accounting principle related to inventory accounting. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Statement Of Income And Comprehensive Income [Abstract] | |||||
Net income (loss) | [1] | $ 63,852 | $ (44,342) | $ 112,115 | |
Other comprehensive (loss) income, net of tax | |||||
Translation adjustments | [1] | 1,427 | (9,075) | (5,262) | |
Translation loss realized through disposition of business | [1] | 11,132 | |||
Minimum pension liability adjustments | [1] | 9,682 | 3,271 | (17,044) | |
Cash flow hedge adjustments | 26 | (128) | (597) | [1] | |
Total other comprehensive (loss) income, net of tax | 11,135 | 5,200 | (22,903) | [1] | |
Comprehensive income (loss) | [1] | $ 74,987 | $ (39,142) | $ 89,212 | |
[1] | Revised in 2015 for the impact of the changes in accounting principle related to inventory accounting. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 21,329 | $ 29,983 |
Accounts receivable, less allowance for doubtful accounts of $18,196 in 2016 and $17,810 in 2015 | 678,184 | 716,537 |
Inventories | 876,837 | 922,162 |
Other current assets | 32,100 | 27,310 |
Total current assets | 1,608,450 | 1,695,992 |
Property, plant and equipment, at cost | ||
Land | 6,634 | 12,968 |
Buildings | 50,622 | 61,777 |
Fixtures and equipment | 353,362 | 342,339 |
Leasehold improvements | 37,147 | 31,082 |
Capitalized software costs | 97,010 | 98,873 |
Total property, plant and equipment | 544,775 | 547,039 |
Less: accumulated depreciation and amortization | 416,524 | 413,288 |
Net property, plant equipment | 128,251 | 133,751 |
Intangible assets, net | 83,690 | 96,413 |
Goodwill | 297,906 | 299,355 |
Other long-term assets | 45,209 | 37,348 |
Total assets | 2,163,506 | 2,262,859 |
Current liabilities: | ||
Accounts payable | 484,602 | 531,949 |
Accrued liabilities | 197,804 | 177,472 |
Current maturities of long-term debt | 28 | 51 |
Total current liabilities | 682,434 | 709,472 |
Deferred income taxes | 6,378 | 11,901 |
Long-term debt | 608,941 | 716,264 |
Other long-term liabilities | 84,647 | 101,488 |
Total liabilities | 1,382,400 | 1,539,125 |
Stockholders’ equity: | ||
Common stock, $0.10 par value; authorized - 100,000,000 shares, issued - 74,435,628 shares in 2016 and 2015 | 7,444 | 7,444 |
Additional paid-in capital | 409,805 | 410,927 |
Treasury stock, at cost – 36,951,522 shares in 2016 and 37,178,394 shares in 2015 | (1,096,744) | (1,100,867) |
Retained earnings | 1,507,057 | 1,463,821 |
Accumulated other comprehensive loss | (46,456) | (57,591) |
Total stockholders’ equity | 781,106 | 723,734 |
Total liabilities and stockholders’ equity | $ 2,163,506 | $ 2,262,859 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 18,196 | $ 17,810 |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, authorized | 100,000,000 | 100,000,000 |
Common stock, issued | 74,435,628 | 74,435,628 |
Treasury stock, shares | 36,951,522 | 37,178,394 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | |||
Balance at Dec. 31, 2013 | $ 820,146 | [1] | $ 7,444 | $ (998,234) | $ 411,954 | $ (39,888) | $ 1,438,870 | [1] | |
Balance (in Shares) at Dec. 31, 2013 | 74,435,628 | (34,714,083) | |||||||
Net income (loss) | [1] | 112,115 | 112,115 | ||||||
Unrealized translation adjustments | (5,262) | [1] | (5,262) | ||||||
Minimum pension liability adjustments, net of tax expense of $10,853, $2,071 and $6,135 in 2014, 2015 and 2016 respectively | (17,044) | [1] | (17,044) | ||||||
Unrealized benefit (loss) on interest rate swaps and cash flow hedges, net of tax benefit (expense) of $(380), $135 & $(52) in 2014, 2015 & 2016 respectively | (597) | [1] | (597) | ||||||
Comprehensive income (loss) | 89,212 | [1] | (22,903) | 112,115 | [1] | ||||
Cash dividend declared, $0.56 per share, $0.56 per share and $0.56 per share in 2014, 2015 and 2016 respectively | [1] | (21,761) | (21,761) | ||||||
Acquisition of treasury stock | (50,591) | [1] | $ (50,591) | ||||||
Acquisition of treasury stock (in shares) | (1,255,705) | ||||||||
Stock compensation | $ 6,661 | [1] | $ 6,324 | 337 | |||||
Stock compensation (in shares) | 250,747 | 250,747 | |||||||
Balance at Dec. 31, 2014 | $ 843,667 | [1] | $ 7,444 | $ (1,042,501) | 412,291 | (62,791) | 1,529,224 | [1] | |
Balance (in Shares) at Dec. 31, 2014 | 74,435,628 | (35,719,041) | |||||||
Net income (loss) | [1] | (44,342) | (44,342) | ||||||
Unrealized translation adjustments | (9,075) | [1] | (9,075) | ||||||
Translation loss realized through disposition of business | 11,132 | [1] | 11,132 | ||||||
Minimum pension liability adjustments, net of tax expense of $10,853, $2,071 and $6,135 in 2014, 2015 and 2016 respectively | 3,271 | [1] | 3,271 | ||||||
Unrealized benefit (loss) on interest rate swaps and cash flow hedges, net of tax benefit (expense) of $(380), $135 & $(52) in 2014, 2015 & 2016 respectively | (128) | [1] | (128) | ||||||
Comprehensive income (loss) | (39,142) | [1] | 5,200 | (44,342) | [1] | ||||
Cash dividend declared, $0.56 per share, $0.56 per share and $0.56 per share in 2014, 2015 and 2016 respectively | [1] | (21,061) | (21,061) | ||||||
Acquisition of treasury stock | $ (67,446) | [1] | $ (67,446) | ||||||
Acquisition of treasury stock (in shares) | (1,822,227) | (1,822,227) | |||||||
Stock compensation | $ 7,716 | [1] | $ 9,080 | (1,364) | |||||
Stock compensation (in shares) | 362,874 | 362,874 | |||||||
Balance at Dec. 31, 2015 | $ 723,734 | [1] | $ 7,444 | $ (1,100,867) | 410,927 | (57,591) | 1,463,821 | [1] | |
Balance (in Shares) at Dec. 31, 2015 | 74,435,628 | (37,178,394) | |||||||
Net income (loss) | [1] | 63,852 | 63,852 | ||||||
Unrealized translation adjustments | 1,427 | [1] | 1,427 | ||||||
Minimum pension liability adjustments, net of tax expense of $10,853, $2,071 and $6,135 in 2014, 2015 and 2016 respectively | 9,682 | [1] | 9,682 | ||||||
Unrealized benefit (loss) on interest rate swaps and cash flow hedges, net of tax benefit (expense) of $(380), $135 & $(52) in 2014, 2015 & 2016 respectively | 26 | [1] | 26 | ||||||
Comprehensive income (loss) | 74,987 | [1] | 11,135 | 63,852 | [1] | ||||
Cash dividend declared, $0.56 per share, $0.56 per share and $0.56 per share in 2014, 2015 and 2016 respectively | [1] | (20,616) | (20,616) | ||||||
Acquisition of treasury stock | $ (6,839) | [1] | $ (6,839) | ||||||
Acquisition of treasury stock (in shares) | (241,270) | (241,270) | |||||||
Stock compensation | $ 9,840 | [1] | $ 10,962 | (1,122) | |||||
Stock compensation (in shares) | 468,142 | 468,142 | |||||||
Balance at Dec. 31, 2016 | $ 781,106 | [1] | $ 7,444 | $ (1,096,744) | $ 409,805 | $ (46,456) | $ 1,507,057 | [1] | |
Balance (in Shares) at Dec. 31, 2016 | 74,435,628 | (36,951,522) | |||||||
[1] | Revised in 2015 for the impact of the changes in accounting principle related to inventory accounting. |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Minimum pension liability adjustment, tax expense | $ (6,135) | $ (2,071) | $ (10,853) | |
Unrealized benefit (loss) on interest rate swaps and cash flow hedges , tax expense (benefit) | $ 52 | $ (135) | $ 380 | |
Cash dividend per share | $ 0.56 | $ 0.56 | $ 0.56 | [1] |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Minimum pension liability adjustment, tax expense | $ (6,135) | $ (2,071) | $ (10,853) | |
Unrealized benefit (loss) on interest rate swaps and cash flow hedges , tax expense (benefit) | $ 52 | $ (135) | $ 380 | |
Retained Earnings [Member] | ||||
Cash dividend per share | $ 0.56 | $ 0.56 | $ 0.56 | |
[1] | Revised in 2015 for the impact of the changes in accounting principle related to inventory accounting. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Cash Flows From Operating Activities: | ||||||
Net income (loss) | [1] | $ 63,852 | $ (44,342) | $ 112,115 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation | 33,289 | 33,532 | 32,381 | [1] | ||
Amortization of intangible assets | 12,238 | 15,143 | 8,623 | [1] | ||
Share-based compensation | 10,202 | 7,895 | 8,195 | [1] | ||
(Gain) loss on the disposition of property, plant and equipment | (20,965) | 1,959 | 1,155 | [1] | ||
Amortization of capitalized financing costs | 681 | 875 | 859 | [1] | ||
Excess tax cost (benefit) related to share-based compensation | 1,034 | (479) | (1,214) | [1] | ||
Loss on disposition of business | [1] | 8,234 | ||||
Loss on sale of equity investment | 33 | |||||
Asset impairment charge | 155,603 | |||||
Deferred income taxes | (10,624) | (23,162) | (10,879) | [1] | ||
Pension settlement charge | 12,510 | |||||
Changes in operating assets and liabilities (net of acquisitions): | ||||||
Decrease (increase) in accounts receivable, net | 38,499 | (9,986) | (16,529) | [1] | ||
Decrease (increase) in inventory | 47,148 | (12,467) | (18,724) | [1] | ||
Increase in other assets | (12,631) | (5,313) | (2,898) | [1] | ||
(Decrease) increase in accounts payable | (47,262) | 41,329 | (40,725) | [1] | ||
Increase in accrued liabilities | 17,534 | 1,077 | 1,276 | [1] | ||
(Decrease) increase in other liabilities | (14,563) | 1,037 | (4,736) | [1] | ||
Net cash provided by operating activities | 130,942 | 162,734 | 77,133 | [1] | ||
Cash Flows From Investing Activities: | ||||||
Capital expenditures | (37,709) | (28,325) | (24,994) | [1] | ||
Proceeds from the disposition of property, plant and equipment | 33,940 | 153 | 2,767 | [1] | ||
Proceeds from the disposition of a subsidiary | 146 | |||||
Acquisitions, net of cash acquired | (40,515) | (161,406) | [1] | |||
Sale of equity investment | 612 | |||||
Net cash used in investing activities | (3,769) | (67,929) | (183,633) | [1] | ||
Cash Flows From Financing Activities: | ||||||
Net (repayment) borrowings under revolving credit facility | (108,052) | 4,577 | 155,911 | [1] | ||
Borrowings under Receivables Securitization Program | [1] | 9,300 | ||||
Repayment of debt | [1] | (135,000) | ||||
Proceeds from the issuance of debt | [1] | 150,000 | ||||
Net proceeds (disbursements) from share-based compensation arrangements | 554 | (770) | (2,863) | [1] | ||
Acquisition of treasury stock, at cost | (6,839) | (68,055) | (49,982) | [1] | ||
Payment of cash dividends | (20,487) | (21,185) | (21,789) | [1] | ||
Excess tax (cost) benefits related to share-based compensation | (1,034) | 479 | 1,214 | [1] | ||
Payment of debt issuance costs | (106) | (36) | (823) | [1] | ||
Net cash (used in) provided by financing activities | (135,964) | (84,990) | 105,968 | [1] | ||
Effect of exchange rate changes on cash and cash equivalents | 137 | (644) | (982) | [1] | ||
Net change in cash and cash equivalents | (8,654) | 9,171 | (1,514) | [1] | ||
Cash and cash equivalents, beginning of period | 29,983 | 20,812 | [1] | 22,326 | [1] | |
Cash and cash equivalents, end of period | 21,329 | 29,983 | 20,812 | [1] | ||
Cash Paid During the Year For: | ||||||
Interest | 22,901 | 19,275 | 12,822 | [1] | ||
Income tax payments, net | $ 32,151 | $ 76,330 | $ 76,205 | [1] | ||
[1] | Revised in 2015 for the impact of the changes in accounting principle related to inventory accounting. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying Consolidated Financial Statements represent Essendant Inc. (“ESND”) with its wholly owned subsidiary Essendant Co. (“ECO”), and ECO’s subsidiaries (collectively, “Essendant” or the “Company”). The Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States and include the accounts of ESND and its subsidiaries. The Company operates in a single reportable segment as a leading national wholesale distributor of workplace items, with net sales of approximately $5.4 billion for the year ended December 31, 2016. The Company provides access to approximately 190,000 items on a national basis. These items include a broad spectrum of janitorial, foodservice and breakroom supplies, technology products, traditional office products, industrial supplies, cut sheet paper products, automotive products and office furniture. The Company sells its products through a national distribution network of 70 distribution centers to its approximately 29,000 reseller customers, who in turn sell directly to end-consumers. The Company’s customers include office and workplace dealers; facilities and maintenance distributors; technology, military, automotive aftermarket, national big-box retailers and healthcare and vertical suppliers; industrial distributors and internet retailers. Many resellers have online capabilities. The Company also operates as an internet retailer which sells direct to end consumers. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company. All significant intercompany accounts and transactions have been eliminated in consolidation. For all acquisitions, account balances and results of operations are included in the Consolidated Financial Statements as of the date acquired. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Actual results could differ from these estimates. Various assumptions and other factors underlie the determination of significant accounting estimates. The process of determining significant estimates is fact specific and takes into account factors such as historical experience, current and expected economic conditions, product mix, and in some cases, actuarial techniques. The Company periodically reevaluates these significant factors and makes adjustments where facts and circumstances dictate. Revenue Recognition Revenue is recognized when a service is rendered or when title to the product has transferred to the customer. Management records an estimate for future product returns related to revenue recognized in the current period. This estimate is based on historical product return trends and the gross margin associated with those returns. Management also records customer rebates that are based on annual sales volume to the Company’s customers. Annual rebates earned by customers include growth components, volume hurdle components, and advertising allowances. Shipping and handling costs billed to customers are treated as revenues and recognized at the time title to the product has transferred to the customer. Freight costs are included in the Company’s Consolidated Financial Statements as a component of cost of goods sold and are not netted against shipping and handling revenues. Net sales do not include sales tax charged to customers. Customer Rebates Customer rebates and discounts are common practice in the business products industry and have a significant impact on the Company’s overall sales and gross margin. Customer rebates include volume rebates, sales growth incentives, advertising allowances, participation in promotions and other miscellaneous discount programs. These rebates are paid to customers monthly, quarterly and/or annually. Such rebates are reported in the Consolidated Financial Statements as a reduction of sales. Prepaid customer rebates were $47.9 million and $36.3 million as of December 31, 2016 and 2015, respectively, and are included as a component of “Other current assets” and “Other assets”. Accrued customer rebates were $65.3 million and $63.6 million as of December 31, 2016 and 2015, respectively, and are included as a component of “Accrued liabilities” in the Consolidated Balance Sheets. Share-Based Compensation At December 31, 2016, the Company had two active share-based employee compensation plans covering key associates and/or non-employee directors of the Company. See Note 5 - “Share-Based Compensation” to the Consolidated Financial Statements for more information. Cash Equivalents Under the Company’s cash management system, the Company utilizes available borrowings, on an as-needed basis, to fund the clearing of checks as they are presented for payment. As of December 31, 2016, and 2015, outstanding checks totaling $34.3 million and $46.0 million, respectively, were included in “Accounts payable” in the Consolidated Balance Sheets. Accounts Receivable In the normal course of business, the Company extends credit to customers. Accounts receivable, as shown in the Consolidated Balance Sheets, include such trade accounts receivable and are net of allowances for doubtful accounts and anticipated discounts. The Company makes judgments as to the collectability of trade accounts receivable based on historical trends and future expectations. Management estimates an allowance for doubtful accounts, which addresses the collectability of trade accounts receivable. This allowance adjusts gross trade accounts receivable downward to its estimated collectible or net realizable value. To determine the allowance for doubtful accounts, management reviews specific customer risks and the Company’s trade accounts receivable aging. Uncollectible trade receivable balances are written off against the allowance for doubtful accounts when it is determined that the trade receivable balance is uncollectible. Supplier Allowances Supplier allowances (fixed or variable) are common practice in the business products industry and have a significant impact on the Company’s overall gross margin. Receivables related to supplier allowances totaled $86.9 million and $111.0 million as of December 31, 2016 and 2015, respectively. These receivables are included in “Accounts receivable” in the Consolidated Balance Sheets. The majority of the Company’s annual supplier allowances and incentives are variable, based solely on the volume and mix of the Company’s product purchases from suppliers. These allowances are recorded based on the Company’s annual inventory purchase volumes and product mix and are included in the Company’s Consolidated Financial Statements as a reduction to cost of goods sold, thereby reflecting the net inventory purchase cost. The remaining portion of the Company’s annual supplier allowances and incentives are fixed and are earned based primarily on supplier participation in specific Company advertising and marketing publications. Fixed allowances and incentives are taken to income through cost of goods sold as inventory is sold. Supplier allowances and incentives attributable to unsold inventory are carried as a component of net inventory cost. Inventories Approximately 98.3% and 98.4% of total inventory as of December 31, 2016 and December 31, 2015, respectively, has been valued under the Last-In-First-Out (“LIFO”) method. An actual valuation of inventory under the LIFO method can be made only at the end of each fiscal year based on the inventory levels and costs at that time. Interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs, and are subject to the final year-end LIFO inventory valuation. Inventory valued under the LIFO accounting method is recorded at the lower of cost or market. If the Company had valued its entire inventory under the lower of First-In-First-Out (“FIFO”) cost or market, inventory would have been $147.9 million (includes $1.5 million LIFO reserve reduction related to Nestor acquired in 2015) and $147.8 million higher than reported as of December 31, 2016 and December 31, 2015, respectively. The change in the LIFO reserve in 2016 included a LIFO liquidation relating to decrements in five of the Company’s eight LIFO pools. These decrements resulted in liquidation of LIFO inventory quantities carried at lower costs in prior years as compared with the cost of current year purchases. This liquidation resulted in LIFO income of $0.8 million which was more than offset by LIFO expense of $2.4 million related to current inflation for an overall net increase in cost of sales of $1.6 million. The change in the LIFO reserve in 2015 included a LIFO liquidation relating to decrements in three of the Company’s eight LIFO pools. These decrements resulted in liquidation of LIFO inventory quantities carried at lower costs in prior years as compared with the cost of current year purchases. This liquidation resulted in LIFO income of $1.1 million which was more than offset by LIFO expense of $7.8 million related to current inflation for an overall net increase in cost of sales of $6.7 million. The change in the LIFO reserve in 2014 included a LIFO liquidation relating to decrements in three of the Company’s seven LIFO pools. These decrements resulted in liquidation of LIFO inventory quantities carried at lower costs in prior years as compared with the cost of current year purchases. This liquidation resulted in LIFO income of $0.9 million which was more than offset by LIFO expense of $18.3 million related to current inflation for an overall net increase in cost of sales of $17.4 million. Property, Plant and Equipment Property, plant and equipment is recorded at cost. Depreciation and amortization are determined by using the straight-line method over the estimated useful lives of the assets. The estimated useful life assigned to fixtures and equipment is from two to ten years; the estimated useful life assigned to buildings does not exceed forty years; leasehold improvements are amortized over the lesser of their useful lives or the term of the applicable lease. Repair and maintenance costs are charged to expense as incurred. Software Capitalization The Company capitalizes internal use software development costs in accordance with guidance on accounting for costs of computer software developed or obtained for internal use. Amortization is recorded on a straight-line basis over the estimated useful life of the software, generally not to exceed ten years. Capitalized software amortization was $8.8 million, $8.5 million and $7.4 million in the years ended December 31, 2016, 2015 and 2014, respectively. Capitalized software is included in “Property, plant and equipment” on the Consolidated Balance Sheets. The total net capitalized software development costs are as follows (in thousands): As of December 31, 2016 2015 Capitalized software development costs $ 97,010 $ 98,873 Accumulated amortization (71,617 ) (73,723 ) Net capitalized software development costs $ 25,393 $ 25,150 Goodwill and Intangible Assets As of December 31, 2016 and 2015, the Company’s Consolidated Balance Sheets reflected $297.9 million and $299.4 million of goodwill, and $83.7 million and $96.4 million in net intangible assets, respectively. See Note 6 - “Goodwill and Intangible Assets” to the consolidated financial statements for more information. Insured Loss Liability Estimates The Company is primarily responsible for retained liabilities related to workers’ compensation, vehicle, and certain employee health benefits. The Company records expense for paid and open claims and an expense for claims incurred but not reported based upon historical trends and certain assumptions about future events. The Company has an annual per-person maximum cap, provided by a third-party insurance company, on certain employee medical benefits. In addition, the Company has a per-occurrence maximum on workers’ compensation and auto claims. Leases The Company leases real estate and personal property under operating leases. Certain operating leases include incentives from landlords including, landlord “build-out” allowances, rent escalation clauses and rent holidays or periods in which rent is not payable for a certain amount of time. The Company accounts for landlord “build-out” allowances as deferred rent at the time of possession and amortizes this deferred rent on a straight-line basis over the term of the lease. The Company also recognizes leasehold improvements associated with the “build-out” allowances and amortizes these improvements over the shorter of the term of the lease or the expected life of the respective improvements. The Company accounts for rent escalation and rent holidays as deferred rent at the time of possession and amortizes this deferred rent on a straight-line basis over the term of the lease. As of December 31, 2016, any capital leases to which the Company is a party are immaterial to the Company’s financial statements. Pension Benefits Calculating the Company’s obligations and expenses related to its union and non-union pension obligation requires selection and use of certain actuarial assumptions. As more fully discussed in Note 13 – “Pension Plans and Defined Contribution Plan”, these actuarial assumptions include discount rates, expected long-term rates of return on plan assets, and life expectancy of plan participants. To select the appropriate actuarial assumptions, management relies on current market conditions and historical information. Pension expense for 2016 was $5.1 million, compared to $5.4 million and $3.6 million in 2015 and 2014, respectively. In 2016, as a result of a lump sum offer, a settlement and remeasurement of the Essendant Pension Plan was performed and resulted in a settlement loss of $12.5 million, for an aggregate pension expense of $17.6 million in 2016. See Note 13 – “Pension Plans and Defined Contribution Plan” for more information. Fair Value of Financial Instruments The estimated fair value of the Company’s financial instruments, including cash and cash equivalents, accounts receivable (net), foreign exchange hedge assets, accounts payable, debt, and long-term interest swap liability, approximates their net carrying values. The fair value of the foreign exchange hedge is estimated based upon quoted market rates and the fair value of the interest rate swaps is estimated based upon the amount that the Company would receive or pay to terminate the agreements as of December 31 of each year. See Note 17 - “Fair Value Measurements”, for further information. Derivative Financial Instruments The Company’s risk management policies allow for the use of derivative financial instruments to manage foreign currency exchange rate and interest rate exposure subject to the management, direction and control of its financial officers. Risk management practices, including the use of all derivative financial instruments, are presented to the Board of Directors for approval. The policies do not allow such derivative financial instruments to be used for speculative purposes. All derivatives are recognized on the balance sheet date at their fair value. The Company’s interest rate swap is classified as a cash flow hedge in accordance with accounting guidance on derivative instruments and hedging activities as it is hedging the variability of cash flow to be paid by the Company. The Company uses foreign currency exchange contracts to hedge certain of its foreign exchange rate exposures related to inventory purchases, and classifies the designation contracts as cash flow hedges. Changes in the fair value are recorded in other comprehensive income, net of tax, until earnings are affected by the forecasted transaction or the variability of cash flow, and then are reported in current earnings. The Company formally documents all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives designated as cash flow hedges to specific forecasted transactions or variability of cash flow. The Company formally assesses, at both the hedge’s inception and on an ongoing basis, whether the derivatives used in hedging transactions are highly effective in offsetting changes in cash flow of hedged items. When it is determined that a derivative is not highly effective as a hedge then hedge accounting is discontinued prospectively in accordance with accounting guidance on derivative instruments and hedging activities. Income Taxes The Company accounts for income taxes using the liability method in accordance with the accounting guidance for income taxes. The Company estimates actual current tax expense and assesses temporary differences that exist due to differing treatments of items for tax and financial statement purposes. These temporary differences result in the recognition of deferred tax assets and liabilities. A provision has not been made for deferred U.S. income taxes on the undistributed earnings of the Company’s foreign subsidiaries as these earnings have historically been permanently invested except to the extent a liability was recorded in purchase accounting for the undistributed earnings of the foreign subsidiaries of O.K.I. Supply Co. as of the date of the acquisition. It is not practicable to determine the amount of unrecognized deferred tax liability for such unremitted foreign earnings. The current and deferred tax balances and income tax expense recognized by the Company are based on management’s interpretation of the tax laws of multiple jurisdictions. Income tax expense also reflects the Company’s best estimates and assumptions regarding, among other things, the level of future taxable income, interpretation of tax laws, and tax planning. Future changes in tax laws, changes in projected levels of taxable income, and tax planning could impact the effective tax rate and current and deferred tax balances recorded by the Company. Management’s estimates as of the date of the Consolidated Financial Statements reflect its best judgment giving consideration to all currently available facts and circumstances. As such, these estimates may require adjustment in the future, as additional facts become known or as circumstances change. Further, in accordance with the accounting guidance on income taxes, the tax effects from uncertain tax positions are recognized in the Consolidated Financial Statements, only if it is more likely than not that the position will be sustained upon examination, based on the technical merits of the position. The Company accounts for interest and penalties related to uncertain tax positions as a component of income tax expense. See Note 15 – “Income Taxes” to the consolidated financial statements for more information. Foreign Currency Translation The functional currency for the Company’s foreign operations is the local currency. Assets and liabilities of these operations are translated into U.S. currency at the rates of exchange at the balance sheet date. The resulting translation adjustments are included in other comprehensive income (loss) in the Consolidated Statements of Comprehensive Income, a separate component of stockholders’ equity. Income and expense items are translated at average monthly rates of exchange. Realized gains and losses from foreign currency transactions included a $11.1 million loss related to the sale of the Mexican subsidiary in 2015. New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, Revenue from Contracts with Customers, Entities have the option of using either a full retrospective or a modified retrospective approach for the adoption of the new standard. The Company currently anticipates adopting the standard using the modified retrospective approach, which will require the Company to recognize the cumulative effect of initial adoption of the standard for all contracts as of, and new contracts after, the date of initial application. Based on the Company’s initial assessment and detailed inspection of the revenue streams of the organization, the impact of the application of the new standard will most likely result in recognition of financing components for certain rebate arrangements that have significant, implied terms and are expected to result in a reduction of net revenues related to implicit interest associated with the significant financing components of those rebate arrangements. The Company also expects other disclosure changes resulting from certain policy elections and practical expedient uses, or allowable divergences from authoritative guidance. The Company expects that revenue recognition related to the processing, fulfillment and shipment of various warehoused goods to remain substantially unchanged. While the Company has not completed the full assessment it will continue to monitor for modifications required by the standards throughout the year ended December 31, 2017. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) that requires lessees to recognize right-of-use assets and lease liabilities for all leases other than those that meet the definition of short-term leases. For short-term leases, lessees may elect an accounting policy by class of underlying asset under which these assets and liabilities are not recognized and lease payments are generally recognized over the lease term on a straight-line basis. This standard will be effective for annual periods beginning after December 15, 2018, including interim periods within that reporting period, and early application is permitted. The Company is currently evaluating the new guidance to determine the impact it will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments In January 2017, the FASB issued ASU No. 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which eliminates the second step of the two-step goodwill and indefinite lived intangible impairment test. Specifically, the standard requires an entity to perform its interim or annual goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge would be recognized for the amount, if any, by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized could not exceed the total amount of goodwill allocated to that reporting unit. An entity still has the option to perform a qualitative assessment to determine if the quantitative impairment test is necessary. The standard is effective for interim and annual reporting periods beginning after December 15, 2019 and is to be applied prospectively. The Company notes that the new guidance would only be impactful on the Company’s consolidated financial statements in the event that an interim or annual goodwill impairment is recognized. |
Change in Accounting Principles
Change in Accounting Principles | 12 Months Ended |
Dec. 31, 2016 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Change in Accounting Principles | 3. Change in Accounting Principles Change in Method of Accounting for Inventory Valuation In 2015, the Company changed its method of inventory costing for certain inventory in its Office and Facilities (formerly known as Business and Facility Essentials and separately known as Supply and Lagasse) operating segment to the LIFO method from the FIFO accounting method. Prior to the change, the Office and Facilities operating segment was comprised of two separate legal entities that each utilized different methods of inventory costing: LIFO for inventories related to office products which is comprised mainly of office product and breakroom categories and FIFO for inventories related to facility products which consists of the janitorial product category. The LIFO method is preferable because i) the Company was executing an initiative to combine the office products and janitorial categories onto a single information technology and operating platform, ii) it allows for consistency in financial reporting (all domestic inventories are on LIFO), and iii) it allows for better matching of costs and revenues as historical inflationary inventory acquisition prices are expected to continue in the future and the LIFO method uses the current acquisition cost to value cost of goods sold. The change was reported through retrospective application of the new accounting policy to all periods presented. The impact of the change in the method of inventory costing for certain inventory in 2015 was a $4.2 million decrease to cost of goods sold, $2.3 million increase to net income, and $0.06 increase in basic and diluted EPS. (dollars in thousands) Year Ended December 31, 2014 Previous Method As Reported Effect of Change Consolidated Statement of Income Cost of goods sold $ 4,516,704 $ 4,524,676 $ 7,972 Gross profit 810,501 802,529 (7,972 ) Warehousing, marketing, and administrative expenses 592,050 595,673 3,623 Income before income taxes 194,483 182,888 (11,595 ) Income tax expense 75,285 70,773 (4,512 ) Net income 119,198 112,115 (7,083 ) Net income per share Basic $ 3.08 $ 2.90 $ (0.18 ) Diluted $ 3.05 $ 2.87 $ (0.18 ) Consolidated Statement of Comprehensive Income Net income $ 119,198 $ 112,115 $ (7,083 ) Comprehensive income 96,295 89,212 (7,083 ) Consolidated Statement of Cash Flows Net income $ 119,198 $ 112,115 $ (7,083 ) Deferred income taxes (6,367 ) (10,879 ) (4,512 ) Inventories (30,319 ) (18,724 ) 11,595 Cash provided by operating activities 77,133 77,133 - Consolidated Statement of Shareholders’ Equity Retained earnings at beginning of year $ 1,444,238 $ 1,438,870 $ (5,368 ) Retained earnings at end of year 1,541,675 1,529,224 (12,451 ) |
Acquisitions & Dispositions
Acquisitions & Dispositions | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions & Dispositions | 4. Acquisitions & Dispositions CPO Commerce, Inc. On May 30, 2014, Essendant Co. completed the acquisition of CPO Commerce, Inc. (“CPO”), a leading internet retailer of brand name power tools and equipment. The purchase price was $37.8 million, including $5.5 million related to the estimated fair value of contingent consideration. The contingent consideration ultimately paid will be determined based on CPO’s sales during a three-year period immediately following the acquisition date, and will be between zero and $10 million. The Company has currently recorded a liability for contingent consideration of $9.7 million. Any changes to the estimated fair value of contingent consideration after the original purchase accounting is completed are recorded in “warehousing, marketing and administrative expenses” in the period in which a change occurs. The Company financed the 100% stock acquisition with borrowings under the Company’s available committed bank facilities. Purchase accounting for this transaction was completed as of May 30, 2015. CPO contributed $135.8 million and $119.7 million to the Company’s 2016 and 2015 net sales, respectively. Had the CPO acquisition been completed as of the beginning of 2014, the Company’s unaudited pro forma net sales and net income for the twelve-month period ending December 31, 2014 would not have been materially impacted. MEDCO On October 31, 2014, Essendant Co. completed the acquisition of 100% of the capital stock of Liberty Bell Equipment Corp., a United States wholesaler of automotive aftermarket tools and equipment, and its affiliates (collectively, MEDCO) including G2S Equipement de Fabrication et d’Entretien, a Canadian wholesaler. The purchase price was $150.4 million, including $4.7 million related to the estimated fair value of contingent consideration. The contingent consideration ultimately paid will be determined based on MEDCO’s sales and EBITDA during a three-year period immediately following the acquisition date. The final payments related to the contingent consideration will be determined by actual achievement in the earn-out periods and will be between zero and $10 million. The Company paid approximately $1.7 million in 2016 and has a liability for contingent consideration of $3.2 million remaining. Any changes to the estimated fair value of contingent consideration after the original purchase accounting is completed are recorded in “warehousing, marketing and administrative expenses” in the period in which a change occurs. Additionally, $6.0 million was reserved as a payable upon completion of an eighteen-month indemnification period, which was paid during the second quarter of 2016. This acquisition was funded through a combination of cash on hand and cash available under the Company’s committed bank facilities. Purchase accounting for this transaction was completed as of October 31, 2015. MEDCO contributed $271.1 million and $270.8 million to the Company’s 2016 and 2015 net sales, respectively. Had the MEDCO acquisition been completed as of the beginning of 2014, the Company’s unaudited pro forma net sales for the year ended December 31, 2014 would have been $5.5 billion, and the Company’s unaudited pro forma net income for the year ended December 31, 2014 would have been $117.9 million. Nestor Sales LLC On July 31, 2015, Essendant Co. completed the acquisition of 100% of the capital stock of Nestor Sales LLC (“Nestor”), a leading wholesaler and distributor of tools, equipment and supplies to the transportation industry. The purchase price was $41.8 million. This acquisition was funded through a combination of cash on hand and cash available under the Company’s revolving credit facility. Purchase accounting for this transaction was completed as of June 30, 2016. Nestor contributed $64.9 million to the Company’s 2016 net sales. Had the Nestor acquisition been completed as of the beginning of 2014, the Company’s unaudited pro forma net sales and net income for the twelve-month periods ended December 31, 2015 and 2014 would not have been materially impacted. The final allocations of the purchase prices were as follows (amounts in thousands): CPO MEDCO NESTOR Purchase price, net of cash acquired $ 32,225 $ 145,873 $ 39,983 Accounts receivable (2,956 ) (44,815 ) (9,230 ) Inventories (13,051 ) (55,491 ) (12,067 ) Other current assets (269 ) (1,299 ) (339 ) Property, plant and equipment, net (488 ) (4,408 ) (1,251 ) Other assets - (650 ) (752 ) Intangible assets (12,800 ) (40,000 ) (16,930 ) Total assets acquired (29,564 ) (146,663 ) (40,569 ) Accounts payable 16,911 32,383 4,992 Accrued liabilities 2,580 5,542 1,943 Deferred income taxes 3,453 2,167 3,287 Other long-term liabilities 90 52 76 Total liabilities assumed 23,034 40,144 10,298 Goodwill $ 25,695 $ 39,354 $ 9,712 The purchased identifiable intangible assets were as follows (amounts in thousands): CPO MEDCO NESTOR Total Estimated Life Total Estimated Life Total Estimated Life Customer relationships $ 5,200 3 years $ 37,590 3-15 years $ 15,570 13 years Trademark 7,600 15 years 2,410 1.5-15 years 1,360 2.5-15 years Total $ 12,800 $ 40,000 $ 16,930 Disposition of Azerty de Mexico In September 2015, the Company completed the 100% stock-sale of its subsidiary, Azerty de Mexico, to the local general manager. The sale price was a combination of cash and a seller’s note, totaling $8.7 million. Final payment on the seller’s note was received in 2016. When the decision to sell the subsidiary was approved, in accordance with Accounting Standards Codification (ASC) 360-10-45-9 Property, Plant, and Equipment Intangibles – Goodwill and Other Disposition of MBS Dev On December 16, 2014, the Company sold MBS Dev, as subsidiary focused on software solutions for distribution companies. In conjunction with this sale, the Company recognized an $8.2 million loss on the disposition of the business. This consisted of a $9.0 million goodwill impairment and an $0.8 million gain on the disposal. See Note 6 “Goodwill and Intangible Assets” for further detail. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 5. Share-Based Compensation Overview As of December 31, 2016, the Company has two active equity compensation plans. A description of these plans is as follows: Nonemployee Directors’ Deferred Stock Compensation Plan Pursuant to the Essendant Inc. Nonemployee Directors’ Deferred Stock Compensation Plan, non-employee directors may defer receipt of all or a portion of their retainer and meeting fees. Fees deferred are credited quarterly to each participating director in the form of stock units, based on the fair market value of the Company’s common stock on the quarterly deferral date. Each stock unit account generally is distributed and settled in whole shares of the Company’s common stock on a one-for-one basis, with a cash-out of any fractional stock unit interests, after the participant ceases to serve as a Company director. For each of the years ended December 31, 2016, 2015 and 2014, the Company recorded compensation expense of $0.1 million. As of December 31, 2016, 2015 and 2014 the accumulated number of stock units outstanding under this plan was 40,189, 41,051, and 43,082, respectively. 2015 Long-Term Incentive Plan (“LTIP”) In May 2015, the Company’s shareholders approved the LTIP to, among other things, attract and retain managerial talent, further align the interest of key associates to those of the Company’s stockholders and provide competitive compensation to key associates. Award vehicles include, but are not limited to, stock options, restricted stock awards, restricted stock units (“RSUs”) and performance-based awards. Associates and non-employee directors of the Company are eligible to become participants in the LTIP, except that non-employee directors may not be granted stock options. Accounting For Share-Based Compensation The following table summarizes the share-based compensation expense (in thousands): Year Ended December 31, 2016 2015 2014 Numerator: Pre-tax expense $ 10,202 $ 7,895 $ 8,195 Tax effect (3,846 ) (3,000 ) (3,114 ) After tax expense $ 6,356 $ 4,895 $ 5,081 Denominator: Denominator for basic shares—Weighted average shares 36,580 37,457 38,705 Denominator for diluted shares—Adjusted weighted average shares and the effect of dilutive securities 36,918 37,457 39,130 Net expense per share: Net expense per share—basic $ 0.17 $ 0.13 $ 0.13 Net expense per share—diluted $ 0.17 $ 0.13 $ 0.13 The following tables summarize the intrinsic value of options outstanding, exercisable, and exercised for the applicable periods listed below (in thousands): As of December 31, Year ended December 31, Outstanding Exercisable Exercised 2016 $ - $ - $ 535 2015 1,253 1,253 902 2014 6,092 4,543 537 The following tables summarize the intrinsic value of restricted shares outstanding and vested for the applicable periods listed below (in thousands): As of December 31, Year ended December 31, Outstanding Vested 2016 $ 29,056 $ 4,705 2015 34,981 8,159 2014 45,928 10,976 The aggregate intrinsic values summarized in the tables above are based on the closing sale price per share for the Company’s common stock on the last day of trading in each year which was $20.90, $32.51, and $42.16 per share for the years ended December 31, 2016, 2015 and 2014, respectively. Additionally, the aggregate intrinsic value of options exercisable does not include the value of options for which the exercise price exceeds the stock price as of the last day of trading in each year. Stock Options In 2016 and 2015, there were no stock options granted and therefore, at December 31, 2016, there was no unrecognized compensation cost related to stock option awards granted. The following table summarizes the transactions, excluding restricted stock, under the Company’s equity compensation plans for the last three years: Weighted Weighted Weighted Average Average Average Exercise Exercise Exercise 2016 Price 2015 Price 2014 Price Options outstanding—January 1 448,687 $ 33.31 727,378 $ 33.81 812,160 $ 33.70 Granted - - - - 5,538 45.89 Exercised (82,228 ) 24.94 (77,918 ) 24.11 (32,610 ) 24.43 Cancelled (35,988 ) 38.69 (200,773 ) 38.71 (57,710 ) 38.74 Expired (100,938 ) 31.13 - - - - Options outstanding—December 31 229,533 $ 36.42 448,687 $ 33.31 727,378 $ 33.81 Number of options exercisable 229,533 $ 36.42 195,402 $ 26.11 273,320 $ 25.54 The following table summarizes proceeds related to option exercises and related tax benefits for the years ended December 31, 2016, 2015 and 2014 (in thousands): Years Ended December 31, 2016 2015 2014 Proceeds from options exercised 2,097 1,939 814 Tax Benefit 199 340 203 The following table summarizes outstanding and exercisable options granted under the Company’s equity compensation plans as of December 31, 2016: Remaining Contractual Exercise Prices Outstanding Life (Years) Exercisable 25.00-30.00 60,216 0.6 60,216 30.01-35.00 2,246 0.4 2,246 35.01-40.00 161,533 6.1 161,533 45.01-50.00 5,538 7.0 5,538 Total 229,533 229,533 Restricted Stock and Restricted Stock Units The Company granted 554,491 shares of restricted stock and 276,110 restricted stock units (“RSUs”) during 2016. During 2015, the Company granted 462,697 shares of restricted stock and 162,092 restricted stock units (“RSUs”). During 2014, the Company granted 253,042 shares of restricted stock and 176,717 RSUs. The majority of the RSUs granted in 2016 and 2015 vest in 2019 and 2018, respectively, and the majority of the RSUs granted in 2014 vest in three annual installments based on the terms of the agreements. The 2016 and 2015 RSUs vest to the extent earned based on the Company’s cumulative net income and cumulative working capital efficiency against target goals. Certain grants made in 2016 include total shareholder return as a metric for vesting as well. The 2014 RSUs are based on net income attainment each year of the vesting period. The performance-based RSUs granted in 2016, 2015, and 2014 have a minimum and maximum payout of zero to 200%. Included in the 2016, 2015, and 2014 grants were 383,196, 333,268, and 271,594 shares of restricted stock and RSUs granted to employees who were not executive officers, as of December 31, 2016, 2015 and 2014, respectively. In addition, there were 55,120, 30,778, and 20,664 shares of restricted stock and RSUs granted to non-employee directors during the years ended December 31, 2016, 2015 and 2014, respectively. For the years ended December 31, 2016, 2015 and 2014, there were also 392,285, 260,743, and 137,501 shares of restricted stock and RSUs granted to executive officers, respectively. The restricted stock granted to executive officers vests with respect to each officer in annual increments over three years, provided that the officer is still employed as of the anniversary date of the grant, and the Company’s cumulative diluted earnings per share for the four calendar quarters immediately preceding the vesting date exceed $0.50 per diluted share as defined in the officers’ restricted stock agreement. As of December 31, 2016, there was $16.8 million of total unrecognized compensation cost related to non-vested restricted stock and RSUs granted. The cost is expected to be recognized over a weighted-average period of 2.0 years. The following table summarizes restricted stock and RSU transactions for the last three years. Weighted Weighted Weighted Average Average Average Grant Date Grant Date Grant Date Restricted Stock and RSUs 2016 Fair Value 2015 Fair Value 2014 Fair Value Nonvested—January 1 1,076,000 $ 36.13 1,089,374 $ 31.23 1,041,189 $ 31.24 Granted 830,601 24.34 624,789 36.79 429,759 40.52 Vested (196,394 ) 37.32 (212,537 ) 33.94 (237,739 ) 41.59 Cancelled (319,965 ) 36.31 (425,626 ) 34.58 (143,835 ) 34.04 Nonvested—December 31 1,390,242 $ 28.88 1,076,000 $ 36.13 1,089,374 $ 31.23 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets The Company tests goodwill for impairment annually as of October 1 and whenever events or circumstances indicate that an impairment may have occurred, such as a significant adverse change in the business climate, loss of key personnel or a decision to sell or dispose of a reporting unit. Determining whether an impairment has occurred requires a comparison of the carrying value of the net assets of the reporting unit to the fair value of the respective reporting unit. Acquired intangible assets are initially recorded at their fair market values determined on quoted market prices in active markets, if available, or recognized valuation models. Intangible assets that have finite useful lives are amortized on a straight-line basis over their useful lives. Intangible assets that have indefinite useful lives are not amortized but are tested at least annually for impairment or whenever events or circumstances indicate impairment may have occurred. The Company makes an annual impairment assessment of its intangibles. During the 2016 annual impairment test, conducted as of October 1, 2016, the Company concluded that the goodwill and intangibles of all the Company’s four reporting units were not impaired. During the 2015 annual impairment test, it was determined that the fair value of the Industrial reporting unit (formerly ORS Industrial) was below its carrying value. The fair value of the business was impacted by the macroeconomic environment in the oilfield and energy sectors that was projected to have a long-term downturn, causing a change in strategic direction for Industrial. Industrial, under new leadership, planned to diversify its offerings to lessen dependencies on the oilfield and energy sectors by revising its merchandising and sales strategy. The determination of fair value for the reporting unit was based on a combination of prices and M&A transactions of comparable businesses and forecasted future discounted cash flows. The amount of the goodwill impairment was determined by valuing the entity’s assets and liabilities at fair value and comparing the fair value of the implied goodwill to its carrying value. Upon completion of this calculation, the carrying amount of the goodwill exceeded the implied fair value resulting in a goodwill impairment of $113.8 million. In addition, as part of this strategic review, the Company determined a portion of its inventory would no longer be offered and, therefore, was obsolete as of December 31, 2015. This determination resulted in an additional reserve of $4.9 million. In connection with the sale of Azerty de Mexico in 2015, the Company performed an impairment test and determined that $3.3 million of goodwill allocated to the subsidiary was fully impaired. See Note 4, “Acquisitions and Dispositions,” for further detail. During the 2014 impairment test, the Company began negotiating the sale of MBS Dev with third parties and concluded that this change in strategy for MBS Dev was an interim indicator of impairment that necessitated an interim test for goodwill impairment. The Company completed a goodwill impairment test as of the date the assets were classified as held for sale, and used a market approach to determine the fair value of the MBS Dev reporting unit. The fair value of the MBS Dev reporting unit did not exceed its carrying value, requiring the Company to determine the amount of goodwill impairment loss by valuing the entity’s assets and liabilities at fair value and comparing the fair value of the implied goodwill to the carrying value of goodwill. Upon completion of this calculation, the carrying amount of the goodwill exceeded the implied fair value of that goodwill, resulting in a goodwill impairment of $9.0 million. The goodwill impairment was partially offset by the fair value of the consideration received for MBS Dev being in excess of the carrying value, leading to a total loss on disposition of MBS Dev of $8.2 million. The recognized and unrecognized intangible assets were valued using the cost method and relief from royalty approach using estimates of forecasted future revenues. Impairment losses are reported in warehousing, marketing, and administrative expenses and inventory reserve is a component of cost of goods sold on the Company’s Consolidated Statement of Operations. As of December 31, 2016 and 2015, the Company’s Consolidated Balance Sheets reflected $297.9 million and $299.4 million of goodwill, respectively. Goodwill, balance as of December 31, 2015 $ 299,355 Purchase accounting adjustments (1,858 ) Currency translation adjustment 409 Goodwill, balance as of December 31, 2016 $ 297,906 Net intangible assets consist primarily of customer lists, trademarks, and non-compete agreements purchased as part of acquisitions. As of December 31, 2016 and 2015, the Company’s Consolidated Balance Sheets reflected $83.7 million and $96.4 million in net intangible assets, respectively. The Company has no intention to renew or extend the terms of acquired intangible assets and accordingly, did not incur any related costs during 2016 or 2015. All of the Company’s intangible assets are subject to amortization, which totaled $12.2 million, $15.1 million, and $8.6 million for the years ended December 31, 2016, 2015 and 2014, respectively. Accumulated amortization of intangible assets as of December 31, 2016 and 2015 totaled $72.1 million and $59.9 million, respectively. The following table summarizes the intangible assets of the Company by major class of intangible assets and the cost, accumulated amortization, net carrying amount, and weighted average life (in thousands): December 31, 2016 December 31, 2015 Weighted Weighted Average Average Gross Net Useful Gross Net Useful Carrying Accumulated Carrying Life Carrying Accumulated Carrying Life Amount Amortization Amount (years) Amount Amortization Amount (years) Intangible assets subject to amortization Customer relationships and other intangibles $ 137,452 $ (62,235 ) $ 75,217 16 $ 137,938 $ (51,357 ) $ 86,581 16 Non-compete agreements 4,649 (4,260 ) 389 4 4,644 (4,260 ) 384 4 Trademarks 13,704 (5,620 ) 8,084 14 13,688 (4,240 ) 9,448 14 Total $ 155,805 $ (72,115 ) $ 83,690 $ 156,270 $ (59,857 ) $ 96,413 The following table summarizes the amortization expense expected to be incurred over the next five years on intangible assets (in thousands): Year Amounts 2017 $ 10,777 2018 8,039 2019 6,922 2020 6,919 2021 6,919 |
Severance and Restructuring Cha
Severance and Restructuring Charges | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring And Related Activities [Abstract] | |
Severance and Restructuring Charges | 7. Severance and Restructuring Charges Commencing in 2015, the Company took certain restructuring actions which included workforce reduction, facility closures and actions to reduce costs through management delayering in order to achieve broader functional alignment of the organization. The charges associated with these actions were included in “warehousing, marketing and administrative expenses”. These actions were substantially completed in 2016. The expenses, cash flows, and accrued liabilities associated with the restructuring actions described above are noted in the following table (in thousands): Expenses Cash flow Accrued Liabilities For the years ended December 31, For the years ended December 31, As of December 31, 2016 2015 2016 2015 2016 Fourth Quarter 2015 Action Workforce reduction $ (700 ) $ 11,863 $ 8,954 $ 785 $ 1,424 First quarter 2015 Actions Workforce reduction $ (510 ) $ 5,467 $ 539 $ 3,660 $ 758 Facility closure 254 1,245 686 813 - Total $ (256 ) $ 6,712 $ 1,225 $ 4,473 $ 758 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 8. Accumulated Other Comprehensive Income (Loss) The change in Accumulated Other Comprehensive Income (Loss) (“AOCI”) by component, net of tax, for the year ended December 31, 2016 is as follows: (amounts in thousands) Foreign Currency Translation Cash Flow Hedges Defined Benefit Pension Plans Total AOCI, balance as of December 31, 2015 $ (9,866 ) $ 146 $ (47,871 ) $ (57,591 ) Other comprehensive (loss) income before reclassifications 1,427 (565 ) (1,299 ) (437 ) Settlement loss reclassified from AOCI - - 7,666 7,666 Amounts reclassified from AOCI - 591 3,315 3,906 Net other comprehensive (loss) income 1,427 26 9,682 11,135 AOCI, balance as of December 31, 2016 $ (8,439 ) $ 172 $ (38,189 ) $ (46,456 ) The following table details the amounts reclassified out of AOCI into the income statement during the twelve-month period ending December 31, 2016 (in thousands): Amount Reclassified From AOCI For the Twelve Months Ended December 31, Affected Line Item In The Statement Details About AOCI Components 2016 Where Net Income is Presented Realized and unrealized gains (losses) on cash flow hedges Gain on interest rate swap, before tax $ 1,007 Interest expense, net Loss on foreign exchange hedges, before tax (42 ) Cost of goods sold Tax benefit (374 ) Tax provision $ 591 Net of tax Defined benefit pension plan items Amortization of prior service cost and unrecognized loss $ 5,429 Warehousing, marketing and administrative expenses Settlement loss 12,510 Defined benefit plan settlement loss Tax benefit (6,958 ) Tax provision 10,981 Net of tax Total reclassifications for the period, net of tax $ 11,572 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 9. Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if dilutive securities were exercised into common stock. Stock options, restricted stock and deferred stock units are considered dilutive securities. Stock options to purchase 0.2 million, 0.3 million, and 0.5 million shares of common stock were outstanding at December 31, 2016, 2015, and 2014, respectively, but were not included in the computation of diluted earnings per share because the options’ exercise prices were greater than the average market price of the common shares and, therefore, the effect would be antidilutive. An additional 0.4 million shares of common stock outstanding at December 31, 2015 were excluded from the computation of diluted earnings per share due to the net loss. The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data): Years Ended December 31, 2016 2015 2014 Numerator: Net income (loss) $ 63,852 $ (44,342 ) $ 112,115 Denominator: Denominator for basic earnings per share - weighted average shares 36,580 37,457 38,705 Effect of dilutive securities: Employee stock options and restricted units 338 - 425 Denominator for diluted earnings per share - Adjusted weighted average shares and the effect of dilutive securities 36,918 37,457 39,130 Net income (loss) per share: Net income (loss) per share - basic $ 1.75 $ (1.18 ) $ 2.90 Net income (loss) per share - diluted ( 1) $ 1.73 $ (1.18 ) $ 2.87 (1) As a result of the net loss in the year ended December 31, 2015, the effect of potentially dilutive securities would have been anti-dilutive and have been omitted from the calculation of diluted earnings per share, consistent with GAAP. Common Stock Repurchases In 2016 and 2015, the Company repurchased 241,270 and 1,822,227 shares of ESND’s common stock at an aggregate cost of $6.8 million and $67.4 million, respectively. Depending on market and business conditions and other factors, the Company may continue or suspend purchasing its common stock at any time without notice. Acquired shares are included in the issued shares of the Company and treasury stock, but are not included in average shares outstanding when calculating earnings per share data. As of December 31, 2016 the Company had $68.2 million remaining on its current Board authorization to repurchase ESND common stock. During 2016, 2015 and 2014, the Company reissued 468,142, 362,874, and 250,747 shares, respectively, of treasury stock to fulfill its obligations under its equity incentive plans. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | 10. Segment Information Management defines operating segments as individual operations that the Chief Operating Decision Maker (“CODM”) (in the Company’s case, the Chief Executive Officer) reviews for the purpose of assessing performance and allocating resources. When evaluating operating segments, management considers whether: The operating segment engages in business activities from which it may earn revenues and incur expenses; • The operating results of the operating segment are regularly reviewed by the enterprise’s CODM; • Discrete financial information is available about the operating segment; and • Other factors are present, such as management structure, presentation of information to the Board of Directors and the nature of the business activity of each operating segment. Based on the factors referenced above, management has determined that the Company has four operating segments, Office and Facilities, Industrial, Automotive and CPO. Office and Facilities includes operations in the United States and included operations in Mexico conducted through a subsidiary, Azerty de Mexico, which was sold in 2015. Industrial includes operations in the United States, Canada and Dubai, UAE. The Automotive operating segment includes operations in the United States and Canada. For the years ended December 31, 2016, 2015 and 2014, the Company’s net sales from its foreign operations totaled $69.4 million, $121.9 million and $147.2 million, respectively. As of December 31, 2016, 2015, and 2014, long-lived assets of the Company’s foreign operations totaled $30.9 million, $32.2 million, and $42.5 million, respectively. Management has also concluded that three of the Company’s operating segments (Office and Facilities, Industrial, and Automotive) meet all of the aggregation criteria required by the accounting guidance. Such determination is based on company-wide similarities in (1) the nature of products and/or services provided, (2) customers served, (3) production processes and/or distribution methods used, (4) economic characteristics including earnings before interest and taxes, and (5) regulatory environment. CPO does not meet the materiality thresholds for reporting individual segments and was combined with the other operating segments. The Company’s product offerings may be divided into the following primary categories: (1) janitorial, foodservice and breakroom supplies, including foodservice consumables, safety and security items; (2) technology products such as computer supplies and peripherals; (3) traditional office products, including writing instruments, organizers and calendars and various office accessories; (4) industrial supplies, including hand and power tools, safety and security supplies, janitorial equipment and supplies, welding products; (5) cut sheet paper products; (6) automotive products, such as aftermarket tools and equipment; and (7) office furniture, including desks, filing and storage solutions, seating and systems furniture. The following table shows net sales by product category for 2016, 2015 and 2014 (in thousands): Years Ended December 31 2016 (1) 2015 (1) 2014 (1) Janitorial, foodservice and breakroom supplies (JanSan) $ 1,435,476 $ 1,457,993 $ 1,443,242 Technology products 1,347,652 1,363,146 1,447,661 Traditional office products 860,324 860,024 861,649 Industrial supplies 560,682 586,580 601,937 Cut sheet paper 394,650 343,604 465,400 Automotive 316,546 279,966 33,709 Office furniture 298,655 318,870 312,203 Freight and other 155,037 152,863 161,404 Total net sales $ 5,369,022 $ 5,363,046 $ 5,327,205 (1) Certain prior period amounts have been reclassified to conform to the current presentation. Such changes include reclassification of specific products to different product categories and did not impact the Consolidated Statements of Operations. Supplier, Customer, and Product Concentration: In 2016, the Company’s largest supplier was Hewlett-Packard Company which represented approximately 20% of its total purchases as compared to 14% and 16% of total purchases in the prior years ended December 31, 2015 and 2014, respectively. No other supplier accounted for more than 10% of the Company’s total purchases in any of the years presented. As of and for the year ended December 31, 2016, the Company had purchases of $18.1 million and payables of $0.7 million to a buying group in which the Company participates through its equity ownership as compared to purchases of $13.8 million and payables of $1.4 million as of and for the year ended December 31, 2015. The Company’s customers include independent office and workplace dealers; facilities and maintenance distributors; technology, military, automotive aftermarket, national big-box retailers and healthcare and vertical suppliers; industrial distributors and internet retailers. The Company had one customer, W.B. Mason Co., Inc., which constituted approximately 11% of its 2016 consolidated net sales, 12% of its 2015 consolidated net sales and 12% of its 2014 consolidated net sales, respectively. No other single customer accounted for more than 10% of the Company’s 2016, 2015 or 2014 consolidated net sales. Further, no single customer accounted for more than 10% of consolidated accounts receivable as of the years ended December 31, 2016 and 2015. No individual product from any product grouping represented 10% or more of our net sales in the years ended December 31, 2016, 2015 or 2014. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | 11. Debt ESND is a holding company and, as a result, its primary sources of funds are cash generated from operating activities of its direct operating subsidiary, ECO, and from borrowings by ECO. The 2017 Credit Agreement, 2013 Credit Agreement, the 2013 Note Purchase Agreement, and the Receivables Securitization Program (each of which are defined below) contain restrictions on the use of cash transferred from ECO to ESND. On February 22, 2017, ESND, ECO, ECO’s United States subsidiaries (ESND, ECO and the subsidiaries collectively referred to as the “Loan Parties”), JPMorgan Chase Bank, National Association, as Administrative Agent, and certain lenders entered into a Fifth Amended and Restated Revolving Credit Agreement (“2017 Credit Agreement”). The 2017 Credit Agreement amended and restated the Fourth Amended and Restated Five-Year Revolving Credit Agreement dated as of July 9, 2013 (as amended prior to February 22, 2017, the “2013 Credit Agreement”). Also on February 22, 2017, ESND, ECO and the holders of ECO’s 3.75% senior secured notes due January 15, 2012, (the “Notes”) entered into Amendment No. 4 (“Amendment No. 4”) to the Note Purchase Agreement dated as of November 25, 2013, (as amended prior to February 22, 2017, the “2013 Note Purchase Agreement”). The 2017 Credit Agreement and Amendment No. 4 eliminated covenants in the 2013 Credit Agreement and the 2013 Note Purchase Agreement that prohibited the Company from exceeding a debt-to-EBITDA ratio of 3.5 to 1.0 (or 4.0 to 1.0 following certain permitted acquisitions) and restricted the Company’s ability to pay dividends and repurchase stock when the ratio was 3.0 to 1.0 or more. As a result, the Company is no longer subject to a debt-to-EBITDA ratio. Proceeds from the 2017 Credit Facility were used to repay the balances of the 2013 Credit Agreement and the Receivables Securitization Program (as defined below). The 2017 Credit Agreement provides for a revolving credit facility (with an aggregated committed principal amount of $1.0 billion), a first-in-last-out (“FILO”) revolving credit facility (with an aggregated committed principal amount of $100 million), and a term loan (with an aggregated committed principal amount of $77.6 million). The term loan may be funded in a single funding on or prior to April 21, 2017, but was not funded at closing. Loans under the 2017 Credit Agreement must be extended to the Company first through the FILO facility. Based on the Company’s applicable asset balances, at closing the total availability under the 2017 Credit Agreement was approximately $1.0 billion. The 2017 Credit Agreement also provides for the issuance of letters of credit, up to $25.0 million, plus an additional $165.0 million as collateral for the Company’s obligations under the 2013 Note Purchase Agreement. Borrowings under the 2017 Credit Agreement bear interest at LIBOR for specified interest periods, at the REVLIBOR30 Rate (as defined in the 2017 Credit Agreement) or at the Alternate Base Rate (as defined in the 2017 Credit Agreement), plus, in each case, a margin determined based on the Company’s average quarterly revolving availability. Depending on the Company’s average quarterly revolving availability, the margin on LIBOR-based loans and REVLIBOR30 Rate-based loans ranges from 1.25% to 1.75% for revolving and term loans and 2.00% to 2.50% for FILO loans, and on Alternate Base Rate loans ranges from 0.25% to 0.75% for revolving and term loans and 1.00% to 1.50% for FILO loans. As of closing to June 30, 2017, the applicable margin for LIBOR-based loans and REVLIBOR30 Rate-based loans is 1.50% for revolving and term loans and 2.25% for FILO loans, and for Alternate Base Rate loans is 0.50% for revolving and term loans and 1.25% for FILO loans. In addition, ECO is required to pay the lenders a commitment fee on the unutilized portion of the revolving and FILO commitments under the 2017 Credit Agreement at a rate per annum equal to 0.25%. The Company can borrow up to $100.0 million of swingline revolving loans on a revolving basis; swingline loans are considered to be unutilized for purposes of the commitment fee. Letters of credit issued pursuant to the 2017 Credit Agreement incur interest based on the applicable margin rate for LIBOR-based Loans, plus 0.125%. Utilization of the 2017 Credit Agreement, consisting of borrowings and letters of credit as of the February 22, 2017 closing of the agreement were approximately $672.5 million and applicable deferred financing fees associated with the transaction will be amortized over the life of the 2017 Credit Agreement. Obligations of ECO under the 2017 Credit Agreement are guaranteed by ESND and ECO’s domestic subsidiaries. ECO’s obligations under these agreements and the guarantors’ obligations under the guaranty are secured by liens on substantially all Company assets. Availability of credit under the revolving facility will be subject to a revolving borrowing base calculation comprised of a certain percentage of the eligible accounts receivable, plus a certain percentage of the eligible inventory, less reserves. Similarly, availability under the FILO revolving credit facility is subject to a FILO borrowing base comprised primarily of 10% of the eligible accounts receivable, plus 10% multiplied by the net orderly liquidation value percentages of the eligible inventory, less reserves. The amount of the term loan will be determined based on the value of the Company’s owned real estate and certain equipment. The 2017 Credit Agreement contains representations and warranties, covenants and events of default that are customary for facilities of this type, including covenants to deliver periodic certifications setting forth the revolving borrowing base and FILO borrowing base. So long as the Payment Conditions (as defined in the Credit Agreement) are satisfied, the Loan Parties may pay dividends, repurchase stock and engage in certain permitted acquisitions, investments and dispositions, in each case subject to the other terms and conditions of the Credit Agreement and the other loan documents. Prior to the closing of the 2017 Credit Agreement noted above, debt consisted of the following amounts (in millions): As of As of December 31, 2016 December 31, 2015 2013 Credit Agreement $ 260.4 $ 368.4 2013 Note Purchase Agreement 150.0 150.0 Receivables Securitization Program 200.0 200.0 Capital Lease 0.1 0.1 Transaction Costs (1.5 ) (2.2 ) Total $ 609.0 $ 716.3 As of December 31, 2016, 75.4% of the Company’s outstanding debt, excluding capital leases and transaction costs, was priced at variable interest rates based primarily on the applicable bank prime rate or London InterBank Offered Rate (“LIBOR”). As of December 31, 2016, the overall weighted average effective borrowing rate, excluding the impact of commitment fees, of the Company’s debt was 2.5%. At December 31, 2016, 50.9% of the Company’s debt was unhedged and variable rate and a 50 basis point movement in interest rates would result in a $1.5 million change in annualized interest expense, on a pre-tax basis, and upon cash flows from operations. Receivables Securitization Program The Company’s accounts receivable securitization program (“Receivables Securitization Program” or the “Program”) was terminated when the Company entered into the 2017 Credit Agreement. The Program provided maximum financing of up to $200 million secured by all the customer accounts receivable and related rights originated by ECO. The receivables sold to investors under the Program remained on ESND’s Consolidated Balance Sheets, and amounts advanced to ESR by Investors were recorded as debt on ESND’s Consolidated Balance Sheets. The cost of such debt is recorded as interest expense on ESND’s Consolidated Statements of Operations. As of December 31, 2016 and 2015, $500.3 million and $448.6 million, respectively, of receivables had been sold to Investors. As of December 31, 2016, the Company had $200.0 million outstanding under the Program. Credit Agreement and Other Debt On November 25, 2013, ESND and ECO, entered into a Note Purchase Agreement (the “2013 Note Purchase Agreement”) with the note purchasers identified therein (collectively, the “Note Purchasers”). Pursuant to the 2013 Note Purchase Agreement, on January 15, 2014, ECO issued and the Note Purchasers purchased an aggregate of $150 million of senior secured notes due January 15, 2021 (the “2014 Notes”). Interest on the 2014 Notes is payable semi-annually at a rate per annum equal to 3.75%. At the time ECO priced the 2014 Notes, ECO terminated the June 2013 Swap Transaction. After giving effect to the impact of terminating the June 2013 Swap Transaction, the effective per annum interest rate on the 2014 Notes is 3.66%. The effective interest rate on the 2014 Notes increased to 4.285% from July 1, 2016 to September 30, 2016 because the Company’s Leverage Ratio (as defined in the 2013 Note Purchase Agreement) as of June 30, 2016, exceeded a specified threshold. In connection with the 2017 Credit Agreement, the 2013 Note Purchase Agreement was amended to remove provisions related to the Company’s Leverage Ratio. If ECO elects, or is required, to prepay some or all of the 2014 Notes prior to January 15, 2021, ECO will be obligated to pay a make-whole amount calculated as set forth in the Agreement. The Company’s obligations under the 2013 Note Purchase Agreement are secured by a $165.0 million letter of credit issued under the 2017 Credit Agreement. On July 8, 2013, the Company and ECO entered into a Fourth Amended and Restated Five-Year Revolving Credit Agreement (the “2013 Credit Agreement”) with JPMorgan Chase Bank, National Association, as Agent, and the lenders identified therein. As noted above, the 2013 Credit Agreement was terminated in February 2017. The 2013 Credit Agreement provided for a revolving credit facility with an aggregate committed principal amount of $700 million. The 2013 Credit Agreement also provided for the issuance of letters of credit. The Company had outstanding letters of credit of $12.5 million under the 2013 Credit Agreement as of December 31, 2016. Borrowings under the 2013 Credit Agreement bore interest at LIBOR for specified interest periods or at the Alternate Base Rate (as defined in the 2013 Credit Agreement), plus, in each case, a margin determined based on the Company’s Leverage Ratio (as defined in the 2013 Credit Agreement). Depending on the Company’s Leverage Ratio, the margin on LIBOR-based loans ranged from 1.00% to 2.00% and on Alternate Base Rate loans ranged from 0.00% to 1.00%. As of December 31, 2016, the applicable margin under the 2013 Credit Agreement was ECO has entered into several interest rate swap transactions to mitigate its floating rate risk on a portion of its total long-term debt. See Note 2, “Summary of Significant Accounting policies”, for further details on these swap transactions and their accounting treatment. Obligations of ECO under the 2014 Notes are guaranteed by ESND and certain of ECO’s domestic subsidiaries. The 2017 Credit Agreement and the 2013 Note Purchase Agreement contain additional representations and warranties, covenants and events of default that were customary for these types of agreements. The 2017 Credit Agreement and the 2013 Note Purchase Agreement contain cross-default provisions. As a result, if a termination event occurs under either of those agreements, the lenders under the 2017 Credit Agreement may cease to make additional loans and the lenders under both agreements may accelerate any loans then outstanding and/or terminate the agreements to which they are party. Debt maturities as of December 31, 2016, were as follows (in millions): Year Amount 2018 (1) $ 460.4 2021 150.0 Total $ 610.4 (1) The debt maturity in 2018 was effectively repaid in February 2017 with borrowings under the 2017 Credit Agreement totaling $522.5 million due 2022. |
Leases, Contractual Obligations
Leases, Contractual Obligations and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Leases Contractual Obligations And Contingencies | 12. Leases, Contractual Obligations and Contingencies The Company has entered into non-cancelable long-term leases for certain property and equipment. Future minimum lease payments under operating leases in effect as of December 31, 2016 having initial or remaining non-cancelable lease terms in excess of one year are as follows (in thousands): Operating Year Leases 2017 $ 50,747 2018 47,871 2019 44,229 2020 34,994 2021 24,290 Thereafter 72,113 Total required lease payments $ 274,244 Operating lease expense was approximately $51.0 million, $48.4 million, and $45.1 million in 2016, 2015 and 2014, respectively. Sale-Leaseback In September 2016, the Company entered into an agreement for the sale and leaseback of its facility in City of Industry, CA. The agreement provided for the sale of the facility for a purchase price of $31.7 million and the subsequent leaseback for a two year period. The lease is classified as an operating lease. As a result, the Company recorded a gain of $20.5 million in “warehousing, marketing and administrative expenses.” A deferred gain of approximately $2.8 million that is being amortized into income over the term of the lease was also recorded. As of December 31, 2016, $1.0 million of the deferred gain is reflected in the accompanying Consolidated Balance Sheet under “other long-term liabilities”, with $1.4 million included as a component of “other current liabilities”. The cash proceeds from the sale were used primarily to pay down long-term debt. |
Pension Plans and Defined Contr
Pension Plans and Defined Contribution Plan | 12 Months Ended |
Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension Plans and Defined Contribution Plan | 13. Pension Plans and Defined Contribution Plan Pension Plans As of December 31, 2016, the Company has pension plans covering approximately 2,250 of its active associates. A non-contributory plan covering non-union associates provides pension benefits that are based on years of credited service and a percentage of annual compensation. Beginning in 2009, benefits were frozen in the plan covering non-union employees. A non-contributory plan covering union members generally provides benefits of stated amounts based on years of service. The Company funds the plans in accordance with all applicable laws and regulations. The Company uses December 31 as its measurement date to determine its pension obligations. Change in Projected Benefit Obligation The following table sets forth the plans’ changes in Projected Benefit Obligation for the years ended December 31, 2016 and 2015 (in thousands): 2016 2015 Benefit obligation at beginning of year $ 211,389 $ 224,086 Service cost—benefit earned during the period 1,269 1,495 Interest cost on projected benefit obligation 8,073 8,997 Actuarial (gain) loss 4,547 (16,846 ) Benefits paid (2,952 ) (6,343 ) Settlements (40,073 ) - Benefit obligation at end of year $ 182,253 $ 211,389 The accumulated benefit obligation for the plans as of December 31, 2016 totaled $182.3 million. The Company has taken several actions to mitigate the interest rate, mortality and investment risks of the Essendant Pension Plan. These actions include a limited-time voluntary lump-sum pension offering to eligible, terminated, vested plan participants As a result of the lump sum offer, a settlement and remeasurement of the Essendant Pension Plan was performed. The remeasurement and activity in 2016 had no cash impact to the Company since the payments were made by the Essendant Pension Trust, and was a component in a $7.1 million improvement to the net funded status of the plan, therefore reducing other long-term liabilities. However, the settlement caused a loss of $12.5 million, which was partially offset by the $14.9 million reduction in Accumulated Other Comprehensive Income related to the unrecognized actuarial loss, for a net impact on shareholders’ equity of $2.4 million as of December 31, 2016 when compared to December 31, 2015. This offer also reduces future pension expense recognized by the Company and volatility related to future obligations of the plan. Plan Assets and Investment Policies and Strategies The following table sets forth the change in the plans’ assets for the years ended December 31, 2016 and 2015 (in thousands): 2016 2015 Fair value of plan assets at beginning of year $ 162,977 $ 173,771 Actual return on plan assets 12,136 (6,451 ) Company contributions 10,000 2,000 Benefits paid (2,952 ) (6,343 ) Settlements (40,073 ) - Fair value of plan assets at end of year $ 142,088 $ 162,977 The Company’s pension plan investment allocations, as a percentage of the fair value of total plan assets, as of December 31, 2016 and 2015, by asset category are as follows: Asset Category 2016 2015 Cash 0.6 % 0.4 % Equity securities 50.8 % 37.8 % Fixed income 27.4 % 40.5 % Real assets 4.8 % 10.8 % Hedge funds 11.9 % 10.5 % Master Limited Partnerships 4.5 % - Total 100.0 % 100.0 % The investment policies and strategies for the Company’s pension plan assets are established with the goals of generating above-average investment returns over time, while containing risks within acceptable levels and providing adequate liquidity for the payment of plan obligations. The Company recognizes that there typically are tradeoffs among these objectives, and strives to minimize risk associated with a given expected return. The Company’s defined benefit plan assets are measured at fair value on a recurring basis and are invested primarily in a diversified mix of fixed income investments and equity securities. The Company establishes target ranges for investment allocation and sets specific allocations. The target allocations for the non-union plan assets are 45.0% fixed income, 36.0% equity securities, 9.0% real assets, and 10.0% hedge funds. The target allocations for the union plan assets are 16.0% fixed income, 62.0% equity securities, 12.0% real assets and 10.0% hedge funds. Equity securities include investments in large cap and small cap corporations located in the U.S. and a mix of both international and emerging market corporations. Fixed income securities include investment grade bonds and U.S. treasuries. Other types of investments include commodity futures, real estate investment trusts (REITs) and hedge funds. Fair values for equity and fixed income securities are primarily based on valuations for identical instruments in active markets. The fair values of the Company’s pension plan assets at December 31, 2016 and 2015 by asset category are as follows: Fair Value Measurements at December 31, 2016 (in thousands) Quoted Prices In Significant Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Asset Category Total (Level 1) (Level 2) (Level 3) Cash $ 874 $ 874 $ - $ - Equity Securities U.S. Large Cap (a) 27,779 27,779 - - International (b) 21,960 21,960 - - Emerging Markets (c) 12,504 12,504 - - U.S. Small Cap (d) 9,974 9,974 - - Fixed Income U.S. Fixed Income (e) 36,778 36,778 - - U.S. Inflation Protected Bonds (f) 403 403 - - High Yield Bonds (g) 912 912 - - International Fixed Income (h) 807 807 - - Real Assets Domestic Real Estate (i) 4,204 4,204 - - Commodities (j) 2,563 2,563 - - Hedge Funds Hedge Funds (k) 16,962 - 16,962 - Master Limited Partnerships (l) Master Limited Partnerships 6,368 6,368 - - Total $ 142,088 $ 125,126 $ 16,962 $ - (a) A daily valued mutual fund investment. The fund invests in publically traded, large capitalization companies domiciled predominantly in the U.S. (b) A daily valued mutual fund investment. This fund invests in common stocks of companies domiciled in developed market countries outside of the U.S. (c) A daily valued mutual fund investment. The fund invests in publically traded companies domiciled in emerging market countries. (d) Two daily mutual fund investments with different investment styles (one core, one value, one growth) that invest in publicly traded small capitalization companies. The majority of holdings are domiciled in the U.S. though the funds may hold international stocks. (e) (f) A daily valued mutual fund investment. The fund invests in publically traded bonds backed by the full faith and credit of the federal government and whose principal is adjusted quarterly based on inflation. (g) A daily valued mutual fund investment. The fund invests in publically traded, higher-quality (top-tier BB and B rated) corporate high yield bonds. (h) A daily valued mutual fund investment. The fund invests in publically traded bonds of governments, agencies and companies domiciled in countries outside of the U.S. ( i ) A daily valued mutual fund investment. The fund invests in publically traded REITs. This is an index mutual fund that tracks the Morgan Stanley REIT Index. The fund normally invests at least 98% of assets that are included in the Morgan Stanley REIT Index. (j) A daily valued mutual fund investment. This fund combines a commodities position, typically through swap agreements, with a portfolio of inflation indexed bonds and other fixed income securities. The commodities position is constructed to track the performance of the Bloomberg Commodity Index. (k) Two separately managed funds of hedge funds. These funds seek attractive risk-adjusted returns through investments in a well-diversified group of managers that employ a variety of unique investment strategies. They target low volatility and low correlation to traditional asset classes. These funds may allocate their assets among a select group of non-traditional portfolio managers that invest or trade in a wide range of securities and other instruments. (l) A publically traded, managed fund of master limited partnerships that primarily derives revenue from energy infrastructure assets or activities. Fair Value Measurements at December 31, 2015 (in thousands) Quoted Prices In Significant Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Asset Category Total (Level 1) (Level 2) (Level 3) Cash $ 655 $ 655 $ - $ - Equity Securities U.S. Large Cap (a) 23,072 23,072 - - International (b) 18,211 18,211 - - Emerging Markets (c) 13,127 13,127 - - U.S. Small Cap (d) 7,256 7,256 - - Fixed Income U.S. Fixed Income (e) 59,517 59,517 - - U.S. Inflation Protected Bonds (f) 1,236 1,236 - - High Yield Bonds (g) 2,295 2,295 - - International Fixed Income (h) 2,900 2,900 - - Real Assets Domestic Real Estate (i) 10,464 10,464 - - Commodities (J) 7,089 7,089 - - Hedge Funds Hedge Funds (k) 17,155 - 17,155 - Total $ 162,977 $ 145,822 $ 17,155 $ - (a) A daily valued mutual fund investment. The fund invests in publically traded, large capitalization companies domiciled predominantly in the U.S. (b) A daily valued mutual fund investment. This fund invests in common stocks of companies domiciled in developed market countries outside of the U.S. (c) A daily valued mutual fund investment. The fund invests in publically traded companies domiciled in emerging market countries. (d) Three daily mutual fund investments with different investment styles (one core, one value, one growth) that invest in publicly traded small capitalization companies. The majority of holdings are domiciled in the U.S. though the funds may hold international stocks. (e) Principally consists of a separately managed fixed income portfolio utilized to match the duration of plan liabilities. This liability-driven investment portfolio is comprised of Treasury securities including STRIPS and zero coupon bonds, as well as high quality corporate bonds. Also includes a daily valued mutual fund that invests in publically traded U.S. government, asset-backed, mortgage-backed and corporate fixed-income securities. (f) A daily valued mutual fund investment. The fund invests in publically traded bonds backed by the full faith and credit of the federal government and whose principal is adjusted quarterly based on inflation. (g) A daily valued mutual fund investment. The fund invests in publically traded, higher-quality (top-tier BB and B rated) corporate high yield bonds. (h) A daily valued mutual fund investment. The fund invests in publically traded bonds of governments, agencies and companies domiciled in countries outside of the U.S. ( i ) A daily valued mutual fund investment. The fund invests in publically traded REITs. This is an index mutual fund that tracks the Morgan Stanley REIT Index. The fund normally invests at least 98% of assets that are included in the Morgan Stanley REIT Index. (j) A daily valued mutual fund investment. This fund combines a commodities position, typically through swap agreements, with a portfolio of inflation indexed bonds and other fixed income securities. The commodities position is constructed to track the performance of the Bloomberg Commodity Index. (k) Two separately managed funds of hedge funds. These funds seek attractive risk-adjusted returns through investments in a well-diversified group of managers that employ a variety of unique investment strategies. They target low volatility and low correlation to traditional asset classes. These funds may allocate their assets among a select group of non-traditional portfolio managers that invest or trade in a wide range of securities and other instruments. Plan Funded Status The following table sets forth the plans’ funded status as of December 31, 2016 and 2015 (in thousands): 2016 2015 Funded status of the plan $ (40,165 ) $ (48,412 ) Unrecognized prior service cost 2,574 2,869 Unrecognized net actuarial loss 58,957 74,461 Net amount recognized $ 21,366 $ 28,918 Amounts Recognized in Consolidated Balance Sheets The following table sets forth the amounts recognized in the consolidated balance sheets as of December 31, 2016 and 2015 (in thousands): 2016 2015 Accrued benefit liability $ (40,165 ) $ (48,412 ) Accumulated other comprehensive income 61,531 77,330 Net amount recognized $ 21,366 $ 28,918 Components of Net Periodic Benefit Cost Net periodic pension cost for the years ended December 31, 2016, 2015 and 2014 for pension and supplemental benefit plans includes the following components (in thousands): Pension Benefits For the Years Ended December 31, 2016 2015 2014 Service cost - benefit earned during the period $ 1,269 $ 1,495 $ 1,069 Interest cost on projected benefit obligation 8,073 8,997 8,960 Expected return on plan assets (9,730 ) (11,217 ) (10,286 ) Amortization of prior service cost 295 296 182 Amortization of actuarial loss 5,134 5,862 3,674 Settlements 12,510 - - Net periodic pension cost $ 17,551 $ 5,433 $ 3,599 The estimated net actuarial loss and prior service cost that will be amortized from accumulated other comprehensive loss into the net periodic benefit cost during 2017 are approximately $4.2 million and $0.3 million, respectively. Assumptions Used The following tables summarize the Company’s actuarial assumptions for discount rates, expected long-term rates of return on plan assets: 2016 2015 2014 Pension plan assumptions Assumed discount rate, general 4.18% 4.52% 4.09% Assumed discount rate, union 4.22% 4.55% 4.16% Expected long-term rate of return on plan assets, general 6.30% 6.50% 6.30% Expected long-term rate of return on plan assets, union 6.20% 6.30% 7.30% To select the appropriate actuarial assumptions, management relied on current market conditions, historical information and consultation with and input from the Company’s outside actuaries. The expected long-term rate of return on plan assets assumption is based on historical returns and the future expectation of returns for each asset category, as well as the target asset allocation of the asset portfolio. Contributions In February 2017, the Company’s Board of Directors approved cash contributions to the Company’s pension plans, totaling $5.0 million to the Essendant Union Employee Pension Plan and $5.0 million to the Essendant Pension Plan. Additional fundings, if any, for 2017 have not yet been determined. Estimated Future Benefit Payments The estimated future benefit payments under the Company’s pension plans, excluding the impact of future lump sum offerings, are as follows (in thousands): Amounts 2017 $ 9,198 2018 7,984 2019 8,833 2020 9,292 2021 9,027 2022-2026 50,839 Defined Contribution Plan The Company has a defined contribution plan. Salaried associates and non-union hourly paid associates are eligible to participate after completing six consecutive months of employment. The plan permits associates to have contributions made as 401(k) salary deferrals on their behalf, or as voluntary after-tax contributions, and provides for Company contributions, or contributions matching associates’ salary deferral contributions, at the discretion of the Board of Directors. Expense associated with the Company contributions to match associates’ contributions were approximately $7.1 million, $5.9 million and $5.5 million in 2016, 2015 and 2014, respectively. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Preferred Stock | 14. Preferred Stock ESND’s authorized capital shares include 15 million shares of preferred stock. The rights and preferences of preferred stock are established by ESND’s Board of Directors upon issuance. As of December 31, 2016 and 2015, ESND had no preferred stock outstanding and all 15 million shares are classified as undesignated preferred stock. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. Income Taxes The provision for income taxes consisted of the following (in thousands): For the Years Ended December 31, 2016 2015 2014 Currently Payable Federal $ 34,867 $ 67,702 $ 72,513 State 5,255 8,387 8,334 Foreign 1,305 1,614 805 Total currently payable 41,427 77,703 81,652 Deferred, net Federal (9,554 ) (20,929 ) (9,510 ) State (779 ) (1,778 ) (1,085 ) Foreign (291 ) (455 ) (284 ) Total deferred, net (10,624 ) (23,162 ) (10,879 ) Provision for income taxes $ 30,803 $ 54,541 $ 70,773 The Company’s effective income tax rates for the years ended December 31, 2016, 2015 and 2014 varied from the statutory federal income tax rate as set forth in the following table (in thousands): Years Ended December 31, 2016 2015 2014 Amount % of Pre-tax Income Amount % of Pre-tax Income Amount % of Pre-tax Income Tax provision based on the federal statutory rate $ 33,130 35.0 % $ 3,569 35.0 % $ 64,011 35.0 % State and local income taxes—net of federal income tax benefit 2,639 2.8 % 374 3.6 % 4,362 2.4 % Impairment of goodwill - - 47,468 465.5 % (4 ) - Valuation allowances (4,265 ) -4.5 % 1,217 11.9 % 3,027 1.7 % Tax effects of foreign dividend payments 1,756 1.8 % - - - - Research and Development tax credit (1,237 ) -1.3 % - - - - Non-deductible and other (1,220 ) -1.3 % 1,913 18.8 % (623 ) -0.4 % Provision for income taxes $ 30,803 32.5 % $ 54,541 534.8 % $ 70,773 38.7 % The deferred tax assets and liabilities resulted from temporary differences in the recognition of certain items for financial and tax accounting purposes. The sources of these differences and the related tax effects were as follows (in thousands): As of December 31, 2016 2015 Assets Liabilities Assets Liabilities Accrued expenses $ 16,742 $ - $ 14,287 $ - Allowance for doubtful accounts 15,155 - 10,355 - Depreciation and amortization - 20,643 - 24,362 Intangibles arising from acquisitions - 22,600 - 25,034 Inventory reserves and adjustments - 17,900 - 16,086 Pension and post-retirement 11,700 - 14,889 - Share-based compensation 6,627 - 5,721 - Income tax credits, capital losses, and net operating losses 10,790 - 14,462 - Restructuring costs 1,288 - 5,442 - Other 921 - 1,026 - Total Deferred 63,223 61,143 66,182 65,482 Valuation Allowance (5,035 ) - (9,189 ) - Net Deferred $ 58,188 $ 61,143 $ 56,993 $ 65,482 Valuation allowances principally relate to federal capital loss carryovers, state tax credits, and net operating losses. As of December 31, 2016, the Company has state tax credit carryforwards of $10.8 million that expire by 2021, state net operating loss carryforwards of $0.6 million that expire by 2033, and acquired federal net operating losses of $5.8 Accounting for Uncertainty in Income Taxes The following table shows the changes in gross unrecognized tax benefits, for the years ended December 31, 2016, 2015 and 2014 (in thousands): 2016 2015 2014 Beginning Balance, January 1 $ 3,350 $ 3,205 $ 3,108 Additions based on tax positions taken during a prior period 713 1 123 Reductions based on tax positions taken during a prior period (32 ) (14 ) (11 ) Additions based on tax positions taken during the current period 103 425 382 Reductions related to settlement of tax matters (52 ) (46 ) (70 ) Reductions related to lapses of applicable statutes of limitation (252 ) (221 ) (327 ) Ending Balance, December 31 $ 3,830 $ 3,350 $ 3,205 The total amount of unrecognized tax benefits as of December 31, 2016, 2015 and 2014 that, if recognized, would affect the effective tax rate are $2.6 million, $2.2 million, and $2.1 million, respectively. The Company recognizes net interest and penalties related to unrecognized tax benefits in income tax expense. The gross amount of interest and penalties reflected in the Consolidated Statements of Operations for the years ended December 31, 2016, 2015 and 2014 were $0.3 million, $0.1 million, and zero, respectively. The Consolidated Balance Sheets at December 31, 2016 and 2015 include $0.9 million and $0.6 million, respectively, accrued for the potential payment of interest and penalties. As of December 31, 2016, the Company’s U.S. Federal income tax returns for 2013 and subsequent years remains subject to examination by tax authorities. In addition, the Company’s state income tax returns for the 2008 and subsequent tax years remain subject to examination by state and local tax authorities. The Company is currently under examination by the IRS and a number of state and local examinations are currently ongoing. Due to the potential for resolution of ongoing examinations and the expiration of various statutes of limitation, it is reasonably possible that the Company’s gross unrecognized tax benefits balance may change within the next twelve months by a range of zero to $1.3 million. |
Other Assets and Liabilities
Other Assets and Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Other Assets And Liabilities [Abstract] | |
Other Assets and Liabilities | 16. Other Assets and Liabilities Other assets and liabilities as of December 31, 2016 and 2015 were as follows (in thousands): As of December 31, 2016 2015 Other Long-Term Assets: Investment in deferred compensation $ 4,776 $ 5,440 Long-term prepaid assets 34,307 26,291 Long-term income tax asset 3,423 3,412 Other 2,703 2,205 Total other long-term assets $ 45,209 $ 37,348 Other Long-Term Liabilities: Accrued pension obligation $ 40,165 $ 48,412 Deferred rent 22,561 18,948 Deferred directors compensation 4,786 5,453 Long-term swap liability 205 469 Long-term income tax liability 3,999 3,832 Long-term merger expenses 1,812 12,965 Long-term workers compensation liability 9,517 8,039 Other 1,602 3,370 Total other long-term liabilities $ 84,647 $ 101,488 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 17. Fair Value Measurements The Company measures certain financial assets and liabilities, including interest rate swaps, at fair value on a recurring basis, based on market rates of the Company’s positions and other observable interest rates. The fair value of the interest rate swaps is determined by using quoted market forward rates (level 2 inputs) and reflects the present value of the amount the Company would pay for contracts involving the same notional amount and maturity date. Accounting guidance on fair value establishes a hierarchy for those instruments measured at fair value which distinguishes between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). The hierarchy consists of three levels: • Level 1—Quoted market prices in active markets for identical assets or liabilities; • Level 2—Inputs other than Level 1 inputs that are either directly or indirectly observable; and • Level 3—Unobservable inputs developed using estimates and assumptions developed by the Company which reflect those that a market participant would use. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter. Fair Value Measurements Quoted Market Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs Total Level 1 Level 2 Level 3 Assets Foreign exchange hedge - as of December 31, 2015 $ 91 $ - $ 91 $ - Liabilities Interest rate swap - as of December 31, 2016 $ 205 $ - $ 205 $ - - as of December 31, 2015 $ 469 $ - $ 469 $ - The carrying amount of accounts receivable at December 31, 2016 and 2015, including $500.3 million and $448.6 million, respectively, of receivables sold under the Receivables Securitization Program, approximates fair value because of the short-term nature of this item. As of December 31, 2016, no assets or liabilities are measured at fair value on a nonrecurring basis. |
Legal Matters
Legal Matters | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Legal Matters | 18. Legal Matters The Company has been named as a defendant in two lawsuits alleging that the Company sent unsolicited fax advertisements to the named plaintiffs, as well as other persons and entities, in violation of the Telephone Consumer Protection Act of 1991, as amended by the Junk Fax Prevention Act of 2005 ("TCPA"). One lawsuit was initially filed in the United States District Court for the Central District of California on May 1, 2015, and subsequently refiled in the United States District Court for the Northern District of Illinois. The other lawsuit was filed in the United States District Court for the Northern District of Illinois on January 14, 2016. The two lawsuits have since been consolidated for discovery, and assigned to the same judge. Plaintiffs in both lawsuits seek certification of a class of plaintiffs comprised of persons and entities who allegedly received fax advertisements from the Company. Under the TCPA, recipients of unsolicited fax advertisements can seek damages of $500 per fax for inadvertent violations and up to $1,500 per fax for knowing and willful violations. Other reported TCPA lawsuits have resulted in a broad range of outcomes, with each case being dependent on its own unique set of facts and circumstances. In each lawsuit, the Company is vigorously contesting class certification and denies that any violations occurred. Litigation of this kind is likely to lead to settlement negotiations, including negotiations prompted by pre-trial civil court procedures. Regardless of whether the lawsuits are resolved at trial or through settlement, the Company believes that a loss associated with resolution of pending claims is probable. The Company has recorded a $4.0 million, pre-tax reserve within the warehousing, marketing and administrative expenses line item in the consolidated statement of operations for the year ended December 31, 2016. The Company is continuing to evaluate its defenses based on its internal review and investigation of prior events, new information and future circumstances. Final disposition of the lawsuits, whether through settlement or through trial, may result in a loss materially in excess of the recorded amount. However, a range of reasonably possible losses is not estimable at this time. The Company is also involved in other legal proceedings arising in the ordinary course of or incidental to its business. The Company has established reserves, which are not material, for potential losses that are probable and reasonably estimable that may result from those proceedings. In many cases, however, it is difficult to determine whether a loss is probable or even possible or to estimate the amount or range of potential loss, particularly where proceedings may be in relatively early stages or where plaintiffs are seeking substantial or indeterminate damages. Matters frequently need to be more developed before a loss or range of loss can reasonably be estimated. The Company believes that such ordinary course legal proceedings will be resolved with no material adverse effect upon its financial condition, results of operations or cash flows. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data-Unaudited | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data-Unaudited | 19. Selected Quarterly Financial Data—Unaudited First Quarter Second Quarter Third Quarter Fourth Quarter Total ( 1) (dollars in thousands, except per share data) Year Ended December 31, 2016: Net sales $ 1,352,296 $ 1,354,523 $ 1,407,504 $ 1,254,699 $ 5,369,022 Gross profit 200,082 195,823 198,854 165,102 759,861 Net income (loss) ( 2) 16,530 12,933 36,742 (2,353 ) 63,852 Net income (loss) per share—basic $ 0.45 $ 0.35 $ 1.00 $ (0.06 ) $ 1.75 Net income (loss) per share—diluted ( 3) $ 0.45 $ 0.35 $ 0.99 $ (0.06 ) $ 1.73 Year Ended December 31, 2015: Net sales $ 1,332,375 $ 1,341,799 $ 1,391,545 $ 1,297,327 $ 5,363,046 Gross profit 200,395 210,119 225,143 200,838 836,495 Net income (loss) ( 4) (6,007 ) 29,834 27,667 (95,836 ) (44,342 ) Net income (loss) per share—basic $ (0.16 ) $ 0.79 $ 0.74 $ (2.61 ) $ (1.18 ) Net income (loss) per share—diluted ( 3) $ (0.16 ) $ 0.78 $ 0.74 $ (2.61 ) $ (1.18 ) (1) As a result of changes in the number of common and common equivalent shares during the year, the sum of quarterly earnings per share will not necessarily equal earnings per share for the total year. (2) 2016 results were impacted by the following items, net of taxes: 2016 factors First Quarter Second Quarter Third Quarter Fourth Quarter Total (dollars in thousands) Gain on sale of City of Industry facility $ - $ - $ (17,752 ) $ (1,651 ) $ (19,403 ) Settlement charge related to the defined benefit plan - 7,328 261 216 7,805 Litigation reserve - - - 2,492 2,492 Severance costs for operating leadership - - 776 - 776 State income tax reserve adjustment - - - 417 417 Restructuring charges 155 - (754 ) - (599 ) Tax impact of a dividend from a foreign subsidiary - - 1,666 - 1,666 (3) As a result of the net loss in the quarters ended December 31, 2016, March 31, 2015 and December 31, 2015 and the year ended December 31, 2015, the effect of potentially dilutive securities would have been anti-dilutive and have been omitted from the calculation of diluted earnings per share, consistent with GAAP. (4) 2015 results were impacted by the following items, net of taxes: First Quarter Second Quarter Third Quarter Fourth Quarter Total (dollars in thousands) Impairment of Industrial goodwill and intangible assets $ - $ - $ - $ 118,076 $ 118,076 Restructuring charges 3,989 (86 ) 124 7,489 11,516 Loss on disposition of business and related costs 13,420 710 2,918 - 17,048 Impairment of assets and accelerated amortization related to rebranding 6,487 318 317 307 7,429 Impairment of seller notes - - 6,658 - 6,658 |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | SCHEDULE II ESSENDANT INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS YEARS ENDED DECEMBER 31, 2016, 2015 and 2014 Description (in thousands) Balance at Beginning of Period Additions Charged to Costs and Expenses Deductions ( 1) Balance at End of Period Allowance for doubtful accounts ( 2) 2016 $ 17,810 5,208 (4,822 ) $ 18,196 2015 $ 19,725 3,231 (5,146 ) $ 17,810 2014 $ 20,608 4,898 (5,781 ) $ 19,725 (1)—net of any recoveries. (2)—represents allowance for doubtful accounts related to the retained interest in receivables sold and accounts receivable, net. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company. All significant intercompany accounts and transactions have been eliminated in consolidation. For all acquisitions, account balances and results of operations are included in the Consolidated Financial Statements as of the date acquired. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Actual results could differ from these estimates. Various assumptions and other factors underlie the determination of significant accounting estimates. The process of determining significant estimates is fact specific and takes into account factors such as historical experience, current and expected economic conditions, product mix, and in some cases, actuarial techniques. The Company periodically reevaluates these significant factors and makes adjustments where facts and circumstances dictate. |
Revenue Recognition | Revenue Recognition Revenue is recognized when a service is rendered or when title to the product has transferred to the customer. Management records an estimate for future product returns related to revenue recognized in the current period. This estimate is based on historical product return trends and the gross margin associated with those returns. Management also records customer rebates that are based on annual sales volume to the Company’s customers. Annual rebates earned by customers include growth components, volume hurdle components, and advertising allowances. Shipping and handling costs billed to customers are treated as revenues and recognized at the time title to the product has transferred to the customer. Freight costs are included in the Company’s Consolidated Financial Statements as a component of cost of goods sold and are not netted against shipping and handling revenues. Net sales do not include sales tax charged to customers. |
Customer Rebates | Customer Rebates Customer rebates and discounts are common practice in the business products industry and have a significant impact on the Company’s overall sales and gross margin. Customer rebates include volume rebates, sales growth incentives, advertising allowances, participation in promotions and other miscellaneous discount programs. These rebates are paid to customers monthly, quarterly and/or annually. Such rebates are reported in the Consolidated Financial Statements as a reduction of sales. Prepaid customer rebates were $47.9 million and $36.3 million as of December 31, 2016 and 2015, respectively, and are included as a component of “Other current assets” and “Other assets”. Accrued customer rebates were $65.3 million and $63.6 million as of December 31, 2016 and 2015, respectively, and are included as a component of “Accrued liabilities” in the Consolidated Balance Sheets. |
Share-Based Compensation | Share-Based Compensation At December 31, 2016, the Company had two active share-based employee compensation plans covering key associates and/or non-employee directors of the Company. See Note 5 - “Share-Based Compensation” to the Consolidated Financial Statements for more information. |
Cash Equivalents | Cash Equivalents Under the Company’s cash management system, the Company utilizes available borrowings, on an as-needed basis, to fund the clearing of checks as they are presented for payment. As of December 31, 2016, and 2015, outstanding checks totaling $34.3 million and $46.0 million, respectively, were included in “Accounts payable” in the Consolidated Balance Sheets. |
Accounts Receivable | Accounts Receivable In the normal course of business, the Company extends credit to customers. Accounts receivable, as shown in the Consolidated Balance Sheets, include such trade accounts receivable and are net of allowances for doubtful accounts and anticipated discounts. The Company makes judgments as to the collectability of trade accounts receivable based on historical trends and future expectations. Management estimates an allowance for doubtful accounts, which addresses the collectability of trade accounts receivable. This allowance adjusts gross trade accounts receivable downward to its estimated collectible or net realizable value. To determine the allowance for doubtful accounts, management reviews specific customer risks and the Company’s trade accounts receivable aging. Uncollectible trade receivable balances are written off against the allowance for doubtful accounts when it is determined that the trade receivable balance is uncollectible. |
Supplier Allowances | Supplier Allowances Supplier allowances (fixed or variable) are common practice in the business products industry and have a significant impact on the Company’s overall gross margin. Receivables related to supplier allowances totaled $86.9 million and $111.0 million as of December 31, 2016 and 2015, respectively. These receivables are included in “Accounts receivable” in the Consolidated Balance Sheets. The majority of the Company’s annual supplier allowances and incentives are variable, based solely on the volume and mix of the Company’s product purchases from suppliers. These allowances are recorded based on the Company’s annual inventory purchase volumes and product mix and are included in the Company’s Consolidated Financial Statements as a reduction to cost of goods sold, thereby reflecting the net inventory purchase cost. The remaining portion of the Company’s annual supplier allowances and incentives are fixed and are earned based primarily on supplier participation in specific Company advertising and marketing publications. Fixed allowances and incentives are taken to income through cost of goods sold as inventory is sold. Supplier allowances and incentives attributable to unsold inventory are carried as a component of net inventory cost. |
Inventories | Inventories Approximately 98.3% and 98.4% of total inventory as of December 31, 2016 and December 31, 2015, respectively, has been valued under the Last-In-First-Out (“LIFO”) method. An actual valuation of inventory under the LIFO method can be made only at the end of each fiscal year based on the inventory levels and costs at that time. Interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs, and are subject to the final year-end LIFO inventory valuation. Inventory valued under the LIFO accounting method is recorded at the lower of cost or market. If the Company had valued its entire inventory under the lower of First-In-First-Out (“FIFO”) cost or market, inventory would have been $147.9 million (includes $1.5 million LIFO reserve reduction related to Nestor acquired in 2015) and $147.8 million higher than reported as of December 31, 2016 and December 31, 2015, respectively. The change in the LIFO reserve in 2016 included a LIFO liquidation relating to decrements in five of the Company’s eight LIFO pools. These decrements resulted in liquidation of LIFO inventory quantities carried at lower costs in prior years as compared with the cost of current year purchases. This liquidation resulted in LIFO income of $0.8 million which was more than offset by LIFO expense of $2.4 million related to current inflation for an overall net increase in cost of sales of $1.6 million. The change in the LIFO reserve in 2015 included a LIFO liquidation relating to decrements in three of the Company’s eight LIFO pools. These decrements resulted in liquidation of LIFO inventory quantities carried at lower costs in prior years as compared with the cost of current year purchases. This liquidation resulted in LIFO income of $1.1 million which was more than offset by LIFO expense of $7.8 million related to current inflation for an overall net increase in cost of sales of $6.7 million. The change in the LIFO reserve in 2014 included a LIFO liquidation relating to decrements in three of the Company’s seven LIFO pools. These decrements resulted in liquidation of LIFO inventory quantities carried at lower costs in prior years as compared with the cost of current year purchases. This liquidation resulted in LIFO income of $0.9 million which was more than offset by LIFO expense of $18.3 million related to current inflation for an overall net increase in cost of sales of $17.4 million. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is recorded at cost. Depreciation and amortization are determined by using the straight-line method over the estimated useful lives of the assets. The estimated useful life assigned to fixtures and equipment is from two to ten years; the estimated useful life assigned to buildings does not exceed forty years; leasehold improvements are amortized over the lesser of their useful lives or the term of the applicable lease. Repair and maintenance costs are charged to expense as incurred. |
Software Capitalization | Software Capitalization The Company capitalizes internal use software development costs in accordance with guidance on accounting for costs of computer software developed or obtained for internal use. Amortization is recorded on a straight-line basis over the estimated useful life of the software, generally not to exceed ten years. Capitalized software amortization was $8.8 million, $8.5 million and $7.4 million in the years ended December 31, 2016, 2015 and 2014, respectively. Capitalized software is included in “Property, plant and equipment” on the Consolidated Balance Sheets. The total net capitalized software development costs are as follows (in thousands): As of December 31, 2016 2015 Capitalized software development costs $ 97,010 $ 98,873 Accumulated amortization (71,617 ) (73,723 ) Net capitalized software development costs $ 25,393 $ 25,150 |
Goodwill and Intangible Assets | Goodwill and Intangible Assets As of December 31, 2016 and 2015, the Company’s Consolidated Balance Sheets reflected $297.9 million and $299.4 million of goodwill, and $83.7 million and $96.4 million in net intangible assets, respectively. See Note 6 - “Goodwill and Intangible Assets” to the consolidated financial statements for more information. |
Insured Loss Liability Estimates | Insured Loss Liability Estimates The Company is primarily responsible for retained liabilities related to workers’ compensation, vehicle, and certain employee health benefits. The Company records expense for paid and open claims and an expense for claims incurred but not reported based upon historical trends and certain assumptions about future events. The Company has an annual per-person maximum cap, provided by a third-party insurance company, on certain employee medical benefits. In addition, the Company has a per-occurrence maximum on workers’ compensation and auto claims. |
Leases | Leases The Company leases real estate and personal property under operating leases. Certain operating leases include incentives from landlords including, landlord “build-out” allowances, rent escalation clauses and rent holidays or periods in which rent is not payable for a certain amount of time. The Company accounts for landlord “build-out” allowances as deferred rent at the time of possession and amortizes this deferred rent on a straight-line basis over the term of the lease. The Company also recognizes leasehold improvements associated with the “build-out” allowances and amortizes these improvements over the shorter of the term of the lease or the expected life of the respective improvements. The Company accounts for rent escalation and rent holidays as deferred rent at the time of possession and amortizes this deferred rent on a straight-line basis over the term of the lease. As of December 31, 2016, any capital leases to which the Company is a party are immaterial to the Company’s financial statements. |
Pension Benefits | Pension Benefits Calculating the Company’s obligations and expenses related to its union and non-union pension obligation requires selection and use of certain actuarial assumptions. As more fully discussed in Note 13 – “Pension Plans and Defined Contribution Plan”, these actuarial assumptions include discount rates, expected long-term rates of return on plan assets, and life expectancy of plan participants. To select the appropriate actuarial assumptions, management relies on current market conditions and historical information. Pension expense for 2016 was $5.1 million, compared to $5.4 million and $3.6 million in 2015 and 2014, respectively. In 2016, as a result of a lump sum offer, a settlement and remeasurement of the Essendant Pension Plan was performed and resulted in a settlement loss of $12.5 million, for an aggregate pension expense of $17.6 million in 2016. See Note 13 – “Pension Plans and Defined Contribution Plan” for more information. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The estimated fair value of the Company’s financial instruments, including cash and cash equivalents, accounts receivable (net), foreign exchange hedge assets, accounts payable, debt, and long-term interest swap liability, approximates their net carrying values. The fair value of the foreign exchange hedge is estimated based upon quoted market rates and the fair value of the interest rate swaps is estimated based upon the amount that the Company would receive or pay to terminate the agreements as of December 31 of each year. See Note 17 - “Fair Value Measurements”, for further information. |
Derivative Financial Instruments | Derivative Financial Instruments The Company’s risk management policies allow for the use of derivative financial instruments to manage foreign currency exchange rate and interest rate exposure subject to the management, direction and control of its financial officers. Risk management practices, including the use of all derivative financial instruments, are presented to the Board of Directors for approval. The policies do not allow such derivative financial instruments to be used for speculative purposes. All derivatives are recognized on the balance sheet date at their fair value. The Company’s interest rate swap is classified as a cash flow hedge in accordance with accounting guidance on derivative instruments and hedging activities as it is hedging the variability of cash flow to be paid by the Company. The Company uses foreign currency exchange contracts to hedge certain of its foreign exchange rate exposures related to inventory purchases, and classifies the designation contracts as cash flow hedges. Changes in the fair value are recorded in other comprehensive income, net of tax, until earnings are affected by the forecasted transaction or the variability of cash flow, and then are reported in current earnings. The Company formally documents all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives designated as cash flow hedges to specific forecasted transactions or variability of cash flow. The Company formally assesses, at both the hedge’s inception and on an ongoing basis, whether the derivatives used in hedging transactions are highly effective in offsetting changes in cash flow of hedged items. When it is determined that a derivative is not highly effective as a hedge then hedge accounting is discontinued prospectively in accordance with accounting guidance on derivative instruments and hedging activities. |
Income Taxes | Income Taxes The Company accounts for income taxes using the liability method in accordance with the accounting guidance for income taxes. The Company estimates actual current tax expense and assesses temporary differences that exist due to differing treatments of items for tax and financial statement purposes. These temporary differences result in the recognition of deferred tax assets and liabilities. A provision has not been made for deferred U.S. income taxes on the undistributed earnings of the Company’s foreign subsidiaries as these earnings have historically been permanently invested except to the extent a liability was recorded in purchase accounting for the undistributed earnings of the foreign subsidiaries of O.K.I. Supply Co. as of the date of the acquisition. It is not practicable to determine the amount of unrecognized deferred tax liability for such unremitted foreign earnings. The current and deferred tax balances and income tax expense recognized by the Company are based on management’s interpretation of the tax laws of multiple jurisdictions. Income tax expense also reflects the Company’s best estimates and assumptions regarding, among other things, the level of future taxable income, interpretation of tax laws, and tax planning. Future changes in tax laws, changes in projected levels of taxable income, and tax planning could impact the effective tax rate and current and deferred tax balances recorded by the Company. Management’s estimates as of the date of the Consolidated Financial Statements reflect its best judgment giving consideration to all currently available facts and circumstances. As such, these estimates may require adjustment in the future, as additional facts become known or as circumstances change. Further, in accordance with the accounting guidance on income taxes, the tax effects from uncertain tax positions are recognized in the Consolidated Financial Statements, only if it is more likely than not that the position will be sustained upon examination, based on the technical merits of the position. The Company accounts for interest and penalties related to uncertain tax positions as a component of income tax expense. See Note 15 – “Income Taxes” to the consolidated financial statements for more information. |
Foreign Currency Translation | Foreign Currency Translation The functional currency for the Company’s foreign operations is the local currency. Assets and liabilities of these operations are translated into U.S. currency at the rates of exchange at the balance sheet date. The resulting translation adjustments are included in other comprehensive income (loss) in the Consolidated Statements of Comprehensive Income, a separate component of stockholders’ equity. Income and expense items are translated at average monthly rates of exchange. Realized gains and losses from foreign currency transactions included a $11.1 million loss related to the sale of the Mexican subsidiary in 2015. |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, Revenue from Contracts with Customers, Entities have the option of using either a full retrospective or a modified retrospective approach for the adoption of the new standard. The Company currently anticipates adopting the standard using the modified retrospective approach, which will require the Company to recognize the cumulative effect of initial adoption of the standard for all contracts as of, and new contracts after, the date of initial application. Based on the Company’s initial assessment and detailed inspection of the revenue streams of the organization, the impact of the application of the new standard will most likely result in recognition of financing components for certain rebate arrangements that have significant, implied terms and are expected to result in a reduction of net revenues related to implicit interest associated with the significant financing components of those rebate arrangements. The Company also expects other disclosure changes resulting from certain policy elections and practical expedient uses, or allowable divergences from authoritative guidance. The Company expects that revenue recognition related to the processing, fulfillment and shipment of various warehoused goods to remain substantially unchanged. While the Company has not completed the full assessment it will continue to monitor for modifications required by the standards throughout the year ended December 31, 2017. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) that requires lessees to recognize right-of-use assets and lease liabilities for all leases other than those that meet the definition of short-term leases. For short-term leases, lessees may elect an accounting policy by class of underlying asset under which these assets and liabilities are not recognized and lease payments are generally recognized over the lease term on a straight-line basis. This standard will be effective for annual periods beginning after December 15, 2018, including interim periods within that reporting period, and early application is permitted. The Company is currently evaluating the new guidance to determine the impact it will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments In January 2017, the FASB issued ASU No. 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which eliminates the second step of the two-step goodwill and indefinite lived intangible impairment test. Specifically, the standard requires an entity to perform its interim or annual goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge would be recognized for the amount, if any, by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized could not exceed the total amount of goodwill allocated to that reporting unit. An entity still has the option to perform a qualitative assessment to determine if the quantitative impairment test is necessary. The standard is effective for interim and annual reporting periods beginning after December 15, 2019 and is to be applied prospectively. The Company notes that the new guidance would only be impactful on the Company’s consolidated financial statements in the event that an interim or annual goodwill impairment is recognized. |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Net Capitalized Software Development Costs | Capitalized software is included in “Property, plant and equipment” on the Consolidated Balance Sheets. The total net capitalized software development costs are as follows (in thousands): As of December 31, 2016 2015 Capitalized software development costs $ 97,010 $ 98,873 Accumulated amortization (71,617 ) (73,723 ) Net capitalized software development costs $ 25,393 $ 25,150 |
Change in Accounting Principl31
Change in Accounting Principles (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Summary of adjustments made to the consolidated financial statements | (dollars in thousands) Year Ended December 31, 2014 Previous Method As Reported Effect of Change Consolidated Statement of Income Cost of goods sold $ 4,516,704 $ 4,524,676 $ 7,972 Gross profit 810,501 802,529 (7,972 ) Warehousing, marketing, and administrative expenses 592,050 595,673 3,623 Income before income taxes 194,483 182,888 (11,595 ) Income tax expense 75,285 70,773 (4,512 ) Net income 119,198 112,115 (7,083 ) Net income per share Basic $ 3.08 $ 2.90 $ (0.18 ) Diluted $ 3.05 $ 2.87 $ (0.18 ) Consolidated Statement of Comprehensive Income Net income $ 119,198 $ 112,115 $ (7,083 ) Comprehensive income 96,295 89,212 (7,083 ) Consolidated Statement of Cash Flows Net income $ 119,198 $ 112,115 $ (7,083 ) Deferred income taxes (6,367 ) (10,879 ) (4,512 ) Inventories (30,319 ) (18,724 ) 11,595 Cash provided by operating activities 77,133 77,133 - Consolidated Statement of Shareholders’ Equity Retained earnings at beginning of year $ 1,444,238 $ 1,438,870 $ (5,368 ) Retained earnings at end of year 1,541,675 1,529,224 (12,451 ) |
Acquisitions & Dispositions (Ta
Acquisitions & Dispositions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Purchase Price Allocation | The final allocations of the purchase prices were as follows (amounts in thousands): CPO MEDCO NESTOR Purchase price, net of cash acquired $ 32,225 $ 145,873 $ 39,983 Accounts receivable (2,956 ) (44,815 ) (9,230 ) Inventories (13,051 ) (55,491 ) (12,067 ) Other current assets (269 ) (1,299 ) (339 ) Property, plant and equipment, net (488 ) (4,408 ) (1,251 ) Other assets - (650 ) (752 ) Intangible assets (12,800 ) (40,000 ) (16,930 ) Total assets acquired (29,564 ) (146,663 ) (40,569 ) Accounts payable 16,911 32,383 4,992 Accrued liabilities 2,580 5,542 1,943 Deferred income taxes 3,453 2,167 3,287 Other long-term liabilities 90 52 76 Total liabilities assumed 23,034 40,144 10,298 Goodwill $ 25,695 $ 39,354 $ 9,712 |
Summary of Purchased Identifiable Intangible Assets | The purchased identifiable intangible assets were as follows (amounts in thousands): CPO MEDCO NESTOR Total Estimated Life Total Estimated Life Total Estimated Life Customer relationships $ 5,200 3 years $ 37,590 3-15 years $ 15,570 13 years Trademark 7,600 15 years 2,410 1.5-15 years 1,360 2.5-15 years Total $ 12,800 $ 40,000 $ 16,930 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Share-Based Compensation Expense | The following table summarizes the share-based compensation expense (in thousands): Year Ended December 31, 2016 2015 2014 Numerator: Pre-tax expense $ 10,202 $ 7,895 $ 8,195 Tax effect (3,846 ) (3,000 ) (3,114 ) After tax expense $ 6,356 $ 4,895 $ 5,081 Denominator: Denominator for basic shares—Weighted average shares 36,580 37,457 38,705 Denominator for diluted shares—Adjusted weighted average shares and the effect of dilutive securities 36,918 37,457 39,130 Net expense per share: Net expense per share—basic $ 0.17 $ 0.13 $ 0.13 Net expense per share—diluted $ 0.17 $ 0.13 $ 0.13 |
Schedule of Intrinsic Value of Options Outstanding, Exercisable and Exercised | As of December 31, Year ended December 31, Outstanding Exercisable Exercised 2016 $ - $ - $ 535 2015 1,253 1,253 902 2014 6,092 4,543 537 As of December 31, Year ended December 31, Outstanding Vested 2016 $ 29,056 $ 4,705 2015 34,981 8,159 2014 45,928 10,976 |
Schedule of Stock Options | The following table summarizes the transactions, excluding restricted stock, under the Company’s equity compensation plans for the last three years: Weighted Weighted Weighted Average Average Average Exercise Exercise Exercise 2016 Price 2015 Price 2014 Price Options outstanding—January 1 448,687 $ 33.31 727,378 $ 33.81 812,160 $ 33.70 Granted - - - - 5,538 45.89 Exercised (82,228 ) 24.94 (77,918 ) 24.11 (32,610 ) 24.43 Cancelled (35,988 ) 38.69 (200,773 ) 38.71 (57,710 ) 38.74 Expired (100,938 ) 31.13 - - - - Options outstanding—December 31 229,533 $ 36.42 448,687 $ 33.31 727,378 $ 33.81 Number of options exercisable 229,533 $ 36.42 195,402 $ 26.11 273,320 $ 25.54 |
Schedule of Proceeds Related to Option Exercises and Related Tax Benefits | The following table summarizes proceeds related to option exercises and related tax benefits for the years ended December 31, 2016, 2015 and 2014 (in thousands): Years Ended December 31, 2016 2015 2014 Proceeds from options exercised 2,097 1,939 814 Tax Benefit 199 340 203 |
Schedule of Outstanding and Exercisable Options Granted | The following table summarizes outstanding and exercisable options granted under the Company’s equity compensation plans as of December 31, 2016: Remaining Contractual Exercise Prices Outstanding Life (Years) Exercisable 25.00-30.00 60,216 0.6 60,216 30.01-35.00 2,246 0.4 2,246 35.01-40.00 161,533 6.1 161,533 45.01-50.00 5,538 7.0 5,538 Total 229,533 229,533 |
Schedule of Restricted Stock and RSU Grants and Changes | The following table summarizes restricted stock and RSU transactions for the last three years. Weighted Weighted Weighted Average Average Average Grant Date Grant Date Grant Date Restricted Stock and RSUs 2016 Fair Value 2015 Fair Value 2014 Fair Value Nonvested—January 1 1,076,000 $ 36.13 1,089,374 $ 31.23 1,041,189 $ 31.24 Granted 830,601 24.34 624,789 36.79 429,759 40.52 Vested (196,394 ) 37.32 (212,537 ) 33.94 (237,739 ) 41.59 Cancelled (319,965 ) 36.31 (425,626 ) 34.58 (143,835 ) 34.04 Nonvested—December 31 1,390,242 $ 28.88 1,076,000 $ 36.13 1,089,374 $ 31.23 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amount of Goodwill | Goodwill, balance as of December 31, 2015 $ 299,355 Purchase accounting adjustments (1,858 ) Currency translation adjustment 409 Goodwill, balance as of December 31, 2016 $ 297,906 |
Summary of Intangible Assets of Company by Major Class | The following table summarizes the intangible assets of the Company by major class of intangible assets and the cost, accumulated amortization, net carrying amount, and weighted average life (in thousands): December 31, 2016 December 31, 2015 Weighted Weighted Average Average Gross Net Useful Gross Net Useful Carrying Accumulated Carrying Life Carrying Accumulated Carrying Life Amount Amortization Amount (years) Amount Amortization Amount (years) Intangible assets subject to amortization Customer relationships and other intangibles $ 137,452 $ (62,235 ) $ 75,217 16 $ 137,938 $ (51,357 ) $ 86,581 16 Non-compete agreements 4,649 (4,260 ) 389 4 4,644 (4,260 ) 384 4 Trademarks 13,704 (5,620 ) 8,084 14 13,688 (4,240 ) 9,448 14 Total $ 155,805 $ (72,115 ) $ 83,690 $ 156,270 $ (59,857 ) $ 96,413 |
Summary of Amortization Expense Expected to be Incurred Over Next Five Years on Intangible Assets | The following table summarizes the amortization expense expected to be incurred over the next five years on intangible assets (in thousands): Year Amounts 2017 $ 10,777 2018 8,039 2019 6,922 2020 6,919 2021 6,919 |
Severance and Restructuring C35
Severance and Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Expenses, Cash Flows, and Accrued Liabilities Associated with Restructuring Actions | The expenses, cash flows, and accrued liabilities associated with the restructuring actions described above are noted in the following table (in thousands): Expenses Cash flow Accrued Liabilities For the years ended December 31, For the years ended December 31, As of December 31, 2016 2015 2016 2015 2016 Fourth Quarter 2015 Action Workforce reduction $ (700 ) $ 11,863 $ 8,954 $ 785 $ 1,424 First quarter 2015 Actions Workforce reduction $ (510 ) $ 5,467 $ 539 $ 3,660 $ 758 Facility closure 254 1,245 686 813 - Total $ (256 ) $ 6,712 $ 1,225 $ 4,473 $ 758 |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Change in Accumulated Other Comprehensive Income (Loss) (AOCI) by Component, Net of Tax | The change in Accumulated Other Comprehensive Income (Loss) (“AOCI”) by component, net of tax, for the year ended December 31, 2016 is as follows: (amounts in thousands) Foreign Currency Translation Cash Flow Hedges Defined Benefit Pension Plans Total AOCI, balance as of December 31, 2015 $ (9,866 ) $ 146 $ (47,871 ) $ (57,591 ) Other comprehensive (loss) income before reclassifications 1,427 (565 ) (1,299 ) (437 ) Settlement loss reclassified from AOCI - - 7,666 7,666 Amounts reclassified from AOCI - 591 3,315 3,906 Net other comprehensive (loss) income 1,427 26 9,682 11,135 AOCI, balance as of December 31, 2016 $ (8,439 ) $ 172 $ (38,189 ) $ (46,456 ) |
Amounts Reclassified Out of AOCI into Income Statement | The following table details the amounts reclassified out of AOCI into the income statement during the twelve-month period ending December 31, 2016 (in thousands): Amount Reclassified From AOCI For the Twelve Months Ended December 31, Affected Line Item In The Statement Details About AOCI Components 2016 Where Net Income is Presented Realized and unrealized gains (losses) on cash flow hedges Gain on interest rate swap, before tax $ 1,007 Interest expense, net Loss on foreign exchange hedges, before tax (42 ) Cost of goods sold Tax benefit (374 ) Tax provision $ 591 Net of tax Defined benefit pension plan items Amortization of prior service cost and unrecognized loss $ 5,429 Warehousing, marketing and administrative expenses Settlement loss 12,510 Defined benefit plan settlement loss Tax benefit (6,958 ) Tax provision 10,981 Net of tax Total reclassifications for the period, net of tax $ 11,572 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data): Years Ended December 31, 2016 2015 2014 Numerator: Net income (loss) $ 63,852 $ (44,342 ) $ 112,115 Denominator: Denominator for basic earnings per share - weighted average shares 36,580 37,457 38,705 Effect of dilutive securities: Employee stock options and restricted units 338 - 425 Denominator for diluted earnings per share - Adjusted weighted average shares and the effect of dilutive securities 36,918 37,457 39,130 Net income (loss) per share: Net income (loss) per share - basic $ 1.75 $ (1.18 ) $ 2.90 Net income (loss) per share - diluted ( 1) $ 1.73 $ (1.18 ) $ 2.87 (1) As a result of the net loss in the year ended December 31, 2015, the effect of potentially dilutive securities would have been anti-dilutive and have been omitted from the calculation of diluted earnings per share, consistent with GAAP. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales by Product Category | The following table shows net sales by product category for 2016, 2015 and 2014 (in thousands): Years Ended December 31 2016 (1) 2015 (1) 2014 (1) Janitorial, foodservice and breakroom supplies (JanSan) $ 1,435,476 $ 1,457,993 $ 1,443,242 Technology products 1,347,652 1,363,146 1,447,661 Traditional office products 860,324 860,024 861,649 Industrial supplies 560,682 586,580 601,937 Cut sheet paper 394,650 343,604 465,400 Automotive 316,546 279,966 33,709 Office furniture 298,655 318,870 312,203 Freight and other 155,037 152,863 161,404 Total net sales $ 5,369,022 $ 5,363,046 $ 5,327,205 (1) Certain prior period amounts have been reclassified to conform to the current presentation. Such changes include reclassification of specific products to different product categories and did not impact the Consolidated Statements of Operations. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Components | Prior to the closing of the 2017 Credit Agreement noted above, debt consisted of the following amounts (in millions): As of As of December 31, 2016 December 31, 2015 2013 Credit Agreement $ 260.4 $ 368.4 2013 Note Purchase Agreement 150.0 150.0 Receivables Securitization Program 200.0 200.0 Capital Lease 0.1 0.1 Transaction Costs (1.5 ) (2.2 ) Total $ 609.0 $ 716.3 |
Schedule of Debt Maturities | Debt maturities as of December 31, 2016, were as follows (in millions): Year Amount 2018 (1) $ 460.4 2021 150.0 Total $ 610.4 (1) The debt maturity in 2018 was effectively repaid in February 2017 with borrowings under the 2017 Credit Agreement totaling $522.5 million due 2022. |
Leases, Contractual Obligatio40
Leases, Contractual Obligations and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments under Operating Leases | The Company has entered into non-cancelable long-term leases for certain property and equipment. Future minimum lease payments under operating leases in effect as of December 31, 2016 having initial or remaining non-cancelable lease terms in excess of one year are as follows (in thousands): Operating Year Leases 2017 $ 50,747 2018 47,871 2019 44,229 2020 34,994 2021 24,290 Thereafter 72,113 Total required lease payments $ 274,244 |
Pension Plans and Defined Con41
Pension Plans and Defined Contribution Plan (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Reconciliation of Changes in Projected Benefit Obligation | The following table sets forth the plans’ changes in Projected Benefit Obligation for the years ended December 31, 2016 and 2015 (in thousands): 2016 2015 Benefit obligation at beginning of year $ 211,389 $ 224,086 Service cost—benefit earned during the period 1,269 1,495 Interest cost on projected benefit obligation 8,073 8,997 Actuarial (gain) loss 4,547 (16,846 ) Benefits paid (2,952 ) (6,343 ) Settlements (40,073 ) - Benefit obligation at end of year $ 182,253 $ 211,389 |
Schedule of Change in Plan Asset | The following table sets forth the change in the plans’ assets for the years ended December 31, 2016 and 2015 (in thousands): 2016 2015 Fair value of plan assets at beginning of year $ 162,977 $ 173,771 Actual return on plan assets 12,136 (6,451 ) Company contributions 10,000 2,000 Benefits paid (2,952 ) (6,343 ) Settlements (40,073 ) - Fair value of plan assets at end of year $ 142,088 $ 162,977 |
Schedule of Pension Plan Investment Allocations | The Company’s pension plan investment allocations, as a percentage of the fair value of total plan assets, as of December 31, 2016 and 2015, by asset category are as follows: Asset Category 2016 2015 Cash 0.6 % 0.4 % Equity securities 50.8 % 37.8 % Fixed income 27.4 % 40.5 % Real assets 4.8 % 10.8 % Hedge funds 11.9 % 10.5 % Master Limited Partnerships 4.5 % - Total 100.0 % 100.0 % |
Schedule of Fair Values of Pension Plan Assets | The fair values of the Company’s pension plan assets at December 31, 2016 and 2015 by asset category are as follows: Fair Value Measurements at December 31, 2016 (in thousands) Quoted Prices In Significant Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Asset Category Total (Level 1) (Level 2) (Level 3) Cash $ 874 $ 874 $ - $ - Equity Securities U.S. Large Cap (a) 27,779 27,779 - - International (b) 21,960 21,960 - - Emerging Markets (c) 12,504 12,504 - - U.S. Small Cap (d) 9,974 9,974 - - Fixed Income U.S. Fixed Income (e) 36,778 36,778 - - U.S. Inflation Protected Bonds (f) 403 403 - - High Yield Bonds (g) 912 912 - - International Fixed Income (h) 807 807 - - Real Assets Domestic Real Estate (i) 4,204 4,204 - - Commodities (j) 2,563 2,563 - - Hedge Funds Hedge Funds (k) 16,962 - 16,962 - Master Limited Partnerships (l) Master Limited Partnerships 6,368 6,368 - - Total $ 142,088 $ 125,126 $ 16,962 $ - (a) A daily valued mutual fund investment. The fund invests in publically traded, large capitalization companies domiciled predominantly in the U.S. (b) A daily valued mutual fund investment. This fund invests in common stocks of companies domiciled in developed market countries outside of the U.S. (c) A daily valued mutual fund investment. The fund invests in publically traded companies domiciled in emerging market countries. (d) Two daily mutual fund investments with different investment styles (one core, one value, one growth) that invest in publicly traded small capitalization companies. The majority of holdings are domiciled in the U.S. though the funds may hold international stocks. (e) (f) A daily valued mutual fund investment. The fund invests in publically traded bonds backed by the full faith and credit of the federal government and whose principal is adjusted quarterly based on inflation. (g) A daily valued mutual fund investment. The fund invests in publically traded, higher-quality (top-tier BB and B rated) corporate high yield bonds. (h) A daily valued mutual fund investment. The fund invests in publically traded bonds of governments, agencies and companies domiciled in countries outside of the U.S. ( i ) A daily valued mutual fund investment. The fund invests in publically traded REITs. This is an index mutual fund that tracks the Morgan Stanley REIT Index. The fund normally invests at least 98% of assets that are included in the Morgan Stanley REIT Index. (j) A daily valued mutual fund investment. This fund combines a commodities position, typically through swap agreements, with a portfolio of inflation indexed bonds and other fixed income securities. The commodities position is constructed to track the performance of the Bloomberg Commodity Index. (k) Two separately managed funds of hedge funds. These funds seek attractive risk-adjusted returns through investments in a well-diversified group of managers that employ a variety of unique investment strategies. They target low volatility and low correlation to traditional asset classes. These funds may allocate their assets among a select group of non-traditional portfolio managers that invest or trade in a wide range of securities and other instruments. (l) A publically traded, managed fund of master limited partnerships that primarily derives revenue from energy infrastructure assets or activities. Fair Value Measurements at December 31, 2015 (in thousands) Quoted Prices In Significant Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Asset Category Total (Level 1) (Level 2) (Level 3) Cash $ 655 $ 655 $ - $ - Equity Securities U.S. Large Cap (a) 23,072 23,072 - - International (b) 18,211 18,211 - - Emerging Markets (c) 13,127 13,127 - - U.S. Small Cap (d) 7,256 7,256 - - Fixed Income U.S. Fixed Income (e) 59,517 59,517 - - U.S. Inflation Protected Bonds (f) 1,236 1,236 - - High Yield Bonds (g) 2,295 2,295 - - International Fixed Income (h) 2,900 2,900 - - Real Assets Domestic Real Estate (i) 10,464 10,464 - - Commodities (J) 7,089 7,089 - - Hedge Funds Hedge Funds (k) 17,155 - 17,155 - Total $ 162,977 $ 145,822 $ 17,155 $ - (a) A daily valued mutual fund investment. The fund invests in publically traded, large capitalization companies domiciled predominantly in the U.S. (b) A daily valued mutual fund investment. This fund invests in common stocks of companies domiciled in developed market countries outside of the U.S. (c) A daily valued mutual fund investment. The fund invests in publically traded companies domiciled in emerging market countries. (d) Three daily mutual fund investments with different investment styles (one core, one value, one growth) that invest in publicly traded small capitalization companies. The majority of holdings are domiciled in the U.S. though the funds may hold international stocks. (e) Principally consists of a separately managed fixed income portfolio utilized to match the duration of plan liabilities. This liability-driven investment portfolio is comprised of Treasury securities including STRIPS and zero coupon bonds, as well as high quality corporate bonds. Also includes a daily valued mutual fund that invests in publically traded U.S. government, asset-backed, mortgage-backed and corporate fixed-income securities. (f) A daily valued mutual fund investment. The fund invests in publically traded bonds backed by the full faith and credit of the federal government and whose principal is adjusted quarterly based on inflation. (g) A daily valued mutual fund investment. The fund invests in publically traded, higher-quality (top-tier BB and B rated) corporate high yield bonds. (h) A daily valued mutual fund investment. The fund invests in publically traded bonds of governments, agencies and companies domiciled in countries outside of the U.S. ( i ) A daily valued mutual fund investment. The fund invests in publically traded REITs. This is an index mutual fund that tracks the Morgan Stanley REIT Index. The fund normally invests at least 98% of assets that are included in the Morgan Stanley REIT Index. (j) A daily valued mutual fund investment. This fund combines a commodities position, typically through swap agreements, with a portfolio of inflation indexed bonds and other fixed income securities. The commodities position is constructed to track the performance of the Bloomberg Commodity Index. (k) Two separately managed funds of hedge funds. These funds seek attractive risk-adjusted returns through investments in a well-diversified group of managers that employ a variety of unique investment strategies. They target low volatility and low correlation to traditional asset classes. These funds may allocate their assets among a select group of non-traditional portfolio managers that invest or trade in a wide range of securities and other instruments. |
Schedule of Plan Funded Status | The following table sets forth the plans’ funded status as of December 31, 2016 and 2015 (in thousands): 2016 2015 Funded status of the plan $ (40,165 ) $ (48,412 ) Unrecognized prior service cost 2,574 2,869 Unrecognized net actuarial loss 58,957 74,461 Net amount recognized $ 21,366 $ 28,918 |
Schedule of Amounts Recognized in Consolidated Balance Sheets | The following table sets forth the amounts recognized in the consolidated balance sheets as of December 31, 2016 and 2015 (in thousands): 2016 2015 Accrued benefit liability $ (40,165 ) $ (48,412 ) Accumulated other comprehensive income 61,531 77,330 Net amount recognized $ 21,366 $ 28,918 |
Schedule of Components of Net Periodic Pension Cost | Net periodic pension cost for the years ended December 31, 2016, 2015 and 2014 for pension and supplemental benefit plans includes the following components (in thousands): Pension Benefits For the Years Ended December 31, 2016 2015 2014 Service cost - benefit earned during the period $ 1,269 $ 1,495 $ 1,069 Interest cost on projected benefit obligation 8,073 8,997 8,960 Expected return on plan assets (9,730 ) (11,217 ) (10,286 ) Amortization of prior service cost 295 296 182 Amortization of actuarial loss 5,134 5,862 3,674 Settlements 12,510 - - Net periodic pension cost $ 17,551 $ 5,433 $ 3,599 |
Schedule of Actuarial Assumptions for Discount Rates, Expected Long-Term Rates of Return on Plan Assets | The following tables summarize the Company’s actuarial assumptions for discount rates, expected long-term rates of return on plan assets: 2016 2015 2014 Pension plan assumptions Assumed discount rate, general 4.18% 4.52% 4.09% Assumed discount rate, union 4.22% 4.55% 4.16% Expected long-term rate of return on plan assets, general 6.30% 6.50% 6.30% Expected long-term rate of return on plan assets, union 6.20% 6.30% 7.30% |
Schedule of Estimated Future Benefit Payments | The estimated future benefit payments under the Company’s pension plans, excluding the impact of future lump sum offerings, are as follows (in thousands): Amounts 2017 $ 9,198 2018 7,984 2019 8,833 2020 9,292 2021 9,027 2022-2026 50,839 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision for income taxes consisted of the following (in thousands): For the Years Ended December 31, 2016 2015 2014 Currently Payable Federal $ 34,867 $ 67,702 $ 72,513 State 5,255 8,387 8,334 Foreign 1,305 1,614 805 Total currently payable 41,427 77,703 81,652 Deferred, net Federal (9,554 ) (20,929 ) (9,510 ) State (779 ) (1,778 ) (1,085 ) Foreign (291 ) (455 ) (284 ) Total deferred, net (10,624 ) (23,162 ) (10,879 ) Provision for income taxes $ 30,803 $ 54,541 $ 70,773 |
Schedule of Effective Income Tax Rates Varied from Statutory Federal Income Tax Rate | The Company’s effective income tax rates for the years ended December 31, 2016, 2015 and 2014 varied from the statutory federal income tax rate as set forth in the following table (in thousands): Years Ended December 31, 2016 2015 2014 Amount % of Pre-tax Income Amount % of Pre-tax Income Amount % of Pre-tax Income Tax provision based on the federal statutory rate $ 33,130 35.0 % $ 3,569 35.0 % $ 64,011 35.0 % State and local income taxes—net of federal income tax benefit 2,639 2.8 % 374 3.6 % 4,362 2.4 % Impairment of goodwill - - 47,468 465.5 % (4 ) - Valuation allowances (4,265 ) -4.5 % 1,217 11.9 % 3,027 1.7 % Tax effects of foreign dividend payments 1,756 1.8 % - - - - Research and Development tax credit (1,237 ) -1.3 % - - - - Non-deductible and other (1,220 ) -1.3 % 1,913 18.8 % (623 ) -0.4 % Provision for income taxes $ 30,803 32.5 % $ 54,541 534.8 % $ 70,773 38.7 % |
Schedule of Deferred Tax Assets and Liabilities | The sources of these differences and the related tax effects were as follows (in thousands): As of December 31, 2016 2015 Assets Liabilities Assets Liabilities Accrued expenses $ 16,742 $ - $ 14,287 $ - Allowance for doubtful accounts 15,155 - 10,355 - Depreciation and amortization - 20,643 - 24,362 Intangibles arising from acquisitions - 22,600 - 25,034 Inventory reserves and adjustments - 17,900 - 16,086 Pension and post-retirement 11,700 - 14,889 - Share-based compensation 6,627 - 5,721 - Income tax credits, capital losses, and net operating losses 10,790 - 14,462 - Restructuring costs 1,288 - 5,442 - Other 921 - 1,026 - Total Deferred 63,223 61,143 66,182 65,482 Valuation Allowance (5,035 ) - (9,189 ) - Net Deferred $ 58,188 $ 61,143 $ 56,993 $ 65,482 |
Schedule of Unrecognized Tax Benefits | The following table shows the changes in gross unrecognized tax benefits, for the years ended December 31, 2016, 2015 and 2014 (in thousands): 2016 2015 2014 Beginning Balance, January 1 $ 3,350 $ 3,205 $ 3,108 Additions based on tax positions taken during a prior period 713 1 123 Reductions based on tax positions taken during a prior period (32 ) (14 ) (11 ) Additions based on tax positions taken during the current period 103 425 382 Reductions related to settlement of tax matters (52 ) (46 ) (70 ) Reductions related to lapses of applicable statutes of limitation (252 ) (221 ) (327 ) Ending Balance, December 31 $ 3,830 $ 3,350 $ 3,205 |
Other Assets and Liabilities (T
Other Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Assets And Liabilities [Abstract] | |
Schedule of Other Assets and Liabilities | Other assets and liabilities as of December 31, 2016 and 2015 were as follows (in thousands): As of December 31, 2016 2015 Other Long-Term Assets: Investment in deferred compensation $ 4,776 $ 5,440 Long-term prepaid assets 34,307 26,291 Long-term income tax asset 3,423 3,412 Other 2,703 2,205 Total other long-term assets $ 45,209 $ 37,348 Other Long-Term Liabilities: Accrued pension obligation $ 40,165 $ 48,412 Deferred rent 22,561 18,948 Deferred directors compensation 4,786 5,453 Long-term swap liability 205 469 Long-term income tax liability 3,999 3,832 Long-term merger expenses 1,812 12,965 Long-term workers compensation liability 9,517 8,039 Other 1,602 3,370 Total other long-term liabilities $ 84,647 $ 101,488 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Measured at Fair Value | Fair Value Measurements Quoted Market Prices in Active Markets for Identical Assets or Liabilities Significant Other Observable Inputs Significant Unobservable Inputs Total Level 1 Level 2 Level 3 Assets Foreign exchange hedge - as of December 31, 2015 $ 91 $ - $ 91 $ - Liabilities Interest rate swap - as of December 31, 2016 $ 205 $ - $ 205 $ - - as of December 31, 2015 $ 469 $ - $ 469 $ - |
Selected Quarterly Financial 45
Selected Quarterly Financial Data-Unaudited (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Selected Quarterly Financial Data | First Quarter Second Quarter Third Quarter Fourth Quarter Total ( 1) (dollars in thousands, except per share data) Year Ended December 31, 2016: Net sales $ 1,352,296 $ 1,354,523 $ 1,407,504 $ 1,254,699 $ 5,369,022 Gross profit 200,082 195,823 198,854 165,102 759,861 Net income (loss) ( 2) 16,530 12,933 36,742 (2,353 ) 63,852 Net income (loss) per share—basic $ 0.45 $ 0.35 $ 1.00 $ (0.06 ) $ 1.75 Net income (loss) per share—diluted ( 3) $ 0.45 $ 0.35 $ 0.99 $ (0.06 ) $ 1.73 Year Ended December 31, 2015: Net sales $ 1,332,375 $ 1,341,799 $ 1,391,545 $ 1,297,327 $ 5,363,046 Gross profit 200,395 210,119 225,143 200,838 836,495 Net income (loss) ( 4) (6,007 ) 29,834 27,667 (95,836 ) (44,342 ) Net income (loss) per share—basic $ (0.16 ) $ 0.79 $ 0.74 $ (2.61 ) $ (1.18 ) Net income (loss) per share—diluted ( 3) $ (0.16 ) $ 0.78 $ 0.74 $ (2.61 ) $ (1.18 ) (1) As a result of changes in the number of common and common equivalent shares during the year, the sum of quarterly earnings per share will not necessarily equal earnings per share for the total year. (2) 2016 results were impacted by the following items, net of taxes: 2016 factors First Quarter Second Quarter Third Quarter Fourth Quarter Total (dollars in thousands) Gain on sale of City of Industry facility $ - $ - $ (17,752 ) $ (1,651 ) $ (19,403 ) Settlement charge related to the defined benefit plan - 7,328 261 216 7,805 Litigation reserve - - - 2,492 2,492 Severance costs for operating leadership - - 776 - 776 State income tax reserve adjustment - - - 417 417 Restructuring charges 155 - (754 ) - (599 ) Tax impact of a dividend from a foreign subsidiary - - 1,666 - 1,666 (3) As a result of the net loss in the quarters ended December 31, 2016, March 31, 2015 and December 31, 2015 and the year ended December 31, 2015, the effect of potentially dilutive securities would have been anti-dilutive and have been omitted from the calculation of diluted earnings per share, consistent with GAAP. (4) 2015 results were impacted by the following items, net of taxes: First Quarter Second Quarter Third Quarter Fourth Quarter Total (dollars in thousands) Impairment of Industrial goodwill and intangible assets $ - $ - $ - $ 118,076 $ 118,076 Restructuring charges 3,989 (86 ) 124 7,489 11,516 Loss on disposition of business and related costs 13,420 710 2,918 - 17,048 Impairment of assets and accelerated amortization related to rebranding 6,487 318 317 307 7,429 Impairment of seller notes - - 6,658 - 6,658 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016USD ($)Product | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)ProductLocationCustomer | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | [1] | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||||||||||||
Net sales | $ | $ 1,254,699 | $ 1,407,504 | $ 1,354,523 | $ 1,352,296 | $ 1,297,327 | $ 1,391,545 | $ 1,341,799 | $ 1,332,375 | $ 5,369,022 | $ 5,363,046 | $ 5,327,205 | |
Number of items | Product | 190,000 | 190,000 | ||||||||||
Number of distribution centers | Location | 70 | |||||||||||
Number of reseller customer | Customer | 29,000 | |||||||||||
[1] | Revised in 2015 for the impact of the changes in accounting principle related to inventory accounting. |
Summary of Significant Accoun47
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($)Plans | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Summary Of Significant Accounting Policies [Line Items] | ||||
Accrued customer rebates included in Accrued liabilities | $ 65,300 | $ 63,600 | ||
Prepaid customer rebates included in Other current assets and Other assets | $ 47,900 | 36,300 | ||
Number of share-based compensation plans | Plans | 2 | |||
Outstanding checks | $ 34,300 | 46,000 | ||
Receivables related to supplier allowances included Accounts receivable | $ 86,900 | $ 111,000 | ||
Percentage inventory valued under LIFO | 98.30% | 98.40% | ||
Higher inventory if FIFO applied entirely | $ 147,900 | $ 147,800 | ||
Effect of LIFO inventory liquidation on income | 800 | 1,100 | $ 900 | |
LIFO expense related to inflation increase in cost of sales | 2,400 | 7,800 | 18,300 | |
Increase (decrease) in cost of sales due to LIFO accounting method | 1,600 | 6,700 | 17,400 | |
Capitalized software amortization | 8,800 | 8,500 | 7,400 | |
Goodwill | 297,906 | 299,355 | ||
Intangible assets, net | 83,690 | 96,413 | ||
Pension expense | 5,100 | 5,400 | 3,600 | |
Pension settlement charge | 12,510 | |||
Loss from foreign currency translation | [1] | 1,427 | (9,075) | $ (5,262) |
Mexican Subsidiary [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Loss from foreign currency translation | $ (11,100) | |||
Pension Plans [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Pension expense | 17,600 | |||
Pension settlement charge | $ 12,510 | |||
Minimum [Member] | Fixtures And Equipment [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 2 years | |||
Maximum [Member] | Fixtures And Equipment [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 10 years | |||
Maximum [Member] | Building [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 40 years | |||
Maximum [Member] | Capitalized Software [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 10 years | |||
Nestor Sales LLC [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
LIFO reserve reduction | $ 1,500 | |||
Goodwill | $ 9,712 | |||
[1] | Revised in 2015 for the impact of the changes in accounting principle related to inventory accounting. |
Summary of Significant Accoun48
Summary of Significant Accounting Policies - Schedule of Net Capitalized Software Development Costs (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | ||
Capitalized software development costs | $ 97,010 | $ 98,873 |
Accumulated amortization | (71,617) | (73,723) |
Net capitalized software development costs | $ 25,393 | $ 25,150 |
Changes in Accounting Principle
Changes in Accounting Principles - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Change In Accounting Principles [Line Items] | |||
Increase decrease in the net income due to LIFO accounting method | $ 1.6 | $ 6.7 | $ 17.4 |
Change in Method of Accounting for Inventory Valuation [Member] | |||
Change In Accounting Principles [Line Items] | |||
Increase (decrease) in cost of goods sold due to LIFO accounting method | (4.2) | ||
Increase decrease in the net income due to LIFO accounting method | $ 2.3 | ||
Increase decrease in the net income due to LIFO accounting method per diluted share | $ 0.06 |
Changes in Accounting Princip50
Changes in Accounting Principles - Summary of adjustments made to the consolidated financial statements (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||
Consolidated Statement of Income | |||||||||||||||
Cost of goods sold | $ 4,609,161 | $ 4,526,551 | $ 4,524,676 | [1] | |||||||||||
Gross profit | $ 165,102 | $ 198,854 | $ 195,823 | $ 200,082 | $ 200,838 | $ 225,143 | $ 210,119 | $ 200,395 | 759,861 | 836,495 | 802,529 | [1] | |||
Warehousing, marketing and administrative expenses | 629,825 | 675,913 | 595,673 | [1] | |||||||||||
Income before income taxes | 94,655 | 10,199 | 182,888 | [1] | |||||||||||
Income tax expense | 30,803 | 54,541 | 70,773 | [1] | |||||||||||
Net income (loss) | $ (2,353) | $ 36,742 | $ 12,933 | $ 16,530 | $ (95,836) | $ 27,667 | $ 29,834 | $ (6,007) | $ 63,852 | [1] | $ (44,342) | [1] | $ 112,115 | [1] | |
Net income per share | |||||||||||||||
Basic | $ (0.06) | $ 1 | $ 0.35 | $ 0.45 | $ (2.61) | $ 0.74 | $ 0.79 | $ (0.16) | $ 1.75 | $ (1.18) | $ 2.90 | [1] | |||
Diluted | $ (0.06) | $ 0.99 | $ 0.35 | $ 0.45 | $ (2.61) | $ 0.74 | $ 0.78 | $ (0.16) | $ 1.73 | $ (1.18) | $ 2.87 | [1] | |||
Consolidated Statement of Comprehensive Income | |||||||||||||||
Net income (loss) | $ (2,353) | $ 36,742 | $ 12,933 | $ 16,530 | $ (95,836) | $ 27,667 | $ 29,834 | $ (6,007) | $ 63,852 | [1] | $ (44,342) | [1] | $ 112,115 | [1] | |
Comprehensive income (loss) | [1] | 74,987 | (39,142) | 89,212 | |||||||||||
Consolidated Statement of Cash Flows | |||||||||||||||
Net income (loss) | (2,353) | $ 36,742 | $ 12,933 | 16,530 | (95,836) | $ 27,667 | $ 29,834 | (6,007) | 63,852 | [1] | (44,342) | [1] | 112,115 | [1] | |
Deferred income taxes | (10,624) | (23,162) | (10,879) | [1] | |||||||||||
Inventories | 47,148 | (12,467) | (18,724) | [1] | |||||||||||
Cash provided by operating activities | 130,942 | 162,734 | 77,133 | [1] | |||||||||||
Consolidated Statement of Shareholders’ Equity | |||||||||||||||
Retained earnings at beginning of year | $ 1,463,821 | 1,529,224 | 1,463,821 | 1,529,224 | 1,438,870 | ||||||||||
Retained earnings at end of year | $ 1,507,057 | $ 1,463,821 | $ 1,507,057 | 1,463,821 | 1,529,224 | ||||||||||
Previous Method [Member] | |||||||||||||||
Consolidated Statement of Income | |||||||||||||||
Cost of goods sold | 4,516,704 | ||||||||||||||
Gross profit | 810,501 | ||||||||||||||
Warehousing, marketing and administrative expenses | 592,050 | ||||||||||||||
Income before income taxes | 194,483 | ||||||||||||||
Income tax expense | 75,285 | ||||||||||||||
Net income (loss) | $ 119,198 | ||||||||||||||
Net income per share | |||||||||||||||
Basic | $ 3.08 | ||||||||||||||
Diluted | $ 3.05 | ||||||||||||||
Consolidated Statement of Comprehensive Income | |||||||||||||||
Net income (loss) | $ 119,198 | ||||||||||||||
Comprehensive income (loss) | 96,295 | ||||||||||||||
Consolidated Statement of Cash Flows | |||||||||||||||
Net income (loss) | 119,198 | ||||||||||||||
Deferred income taxes | (6,367) | ||||||||||||||
Inventories | (30,319) | ||||||||||||||
Cash provided by operating activities | 77,133 | ||||||||||||||
Consolidated Statement of Shareholders’ Equity | |||||||||||||||
Retained earnings at beginning of year | 1,541,675 | 1,541,675 | 1,444,238 | ||||||||||||
Retained earnings at end of year | 1,541,675 | ||||||||||||||
Effect Of Change [Member] | |||||||||||||||
Consolidated Statement of Income | |||||||||||||||
Cost of goods sold | 7,972 | ||||||||||||||
Gross profit | (7,972) | ||||||||||||||
Warehousing, marketing and administrative expenses | 3,623 | ||||||||||||||
Income before income taxes | (11,595) | ||||||||||||||
Income tax expense | (4,512) | ||||||||||||||
Net income (loss) | $ (7,083) | ||||||||||||||
Net income per share | |||||||||||||||
Basic | $ (0.18) | ||||||||||||||
Diluted | $ (0.18) | ||||||||||||||
Consolidated Statement of Comprehensive Income | |||||||||||||||
Net income (loss) | $ (7,083) | ||||||||||||||
Comprehensive income (loss) | (7,083) | ||||||||||||||
Consolidated Statement of Cash Flows | |||||||||||||||
Net income (loss) | (7,083) | ||||||||||||||
Deferred income taxes | (4,512) | ||||||||||||||
Inventories | 11,595 | ||||||||||||||
Consolidated Statement of Shareholders’ Equity | |||||||||||||||
Retained earnings at beginning of year | $ (12,451) | $ (12,451) | (5,368) | ||||||||||||
Retained earnings at end of year | $ (12,451) | ||||||||||||||
[1] | Revised in 2015 for the impact of the changes in accounting principle related to inventory accounting. |
Acquisitions & Dispositions - A
Acquisitions & Dispositions - Additional Information (Detail) - USD ($) | Jul. 31, 2015 | Dec. 16, 2014 | Oct. 31, 2014 | Oct. 01, 2014 | May 30, 2014 | Sep. 30, 2015 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | ||||||||||||||||||
Net sales | $ 1,254,699,000 | $ 1,407,504,000 | $ 1,354,523,000 | $ 1,352,296,000 | $ 1,297,327,000 | $ 1,391,545,000 | $ 1,341,799,000 | $ 1,332,375,000 | $ 5,369,022,000 | $ 5,363,046,000 | $ 5,327,205,000 | [1] | ||||||
Goodwill impairment | $ 9,000,000 | |||||||||||||||||
Impairment charge | 155,603,000 | |||||||||||||||||
Loss on disposition of business | 1,461,000 | (800,000) | [1] | |||||||||||||||
Azerty de Mexico [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Percentage of stock-sale of subsidiary | 100.00% | |||||||||||||||||
Combination of cash and Seller's note | $ 8,700,000 | |||||||||||||||||
Goodwill impairment | 3,300,000 | |||||||||||||||||
Cumulative foreign currency translation adjustment, of the disposal group | 10,100,000 | |||||||||||||||||
Pre-tax impairment loss of the disposal group | 10,100,000 | |||||||||||||||||
Loss on disposition of business | $ 1,500,000 | |||||||||||||||||
Pre-tax income (loss) from subsidiary | 5,200,000 | 300,000 | ||||||||||||||||
Azerty de Mexico [Member] | Warehousing, Marketing and Administrative Expenses [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Impairment charge | 10,100,000 | |||||||||||||||||
Additional cost incurred during transaction | 3,600,000 | |||||||||||||||||
MBS Dev, Inc [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Goodwill impairment | $ 9,000,000 | |||||||||||||||||
Loss on disposition of business | 8,200,000 | |||||||||||||||||
Gain on disposal | $ 800,000 | |||||||||||||||||
CPO Commerce, Inc [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Business acquisition cash paid | $ 37,800,000 | |||||||||||||||||
Business acquisition, fair value of contingent consideration | 5,500,000 | |||||||||||||||||
Business acquisition contingent consideration payments, range minimum | 0 | |||||||||||||||||
Business acquisition contingent consideration payments, range maximum | $ 10,000,000 | |||||||||||||||||
Business acquisition contingent consideration liability, current | 9,700,000 | 9,700,000 | ||||||||||||||||
Stock acquisition, percentage acquired | 100.00% | |||||||||||||||||
Net sales | 135,800,000 | 119,700,000 | ||||||||||||||||
MEDCO [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Business acquisition cash paid | $ 150,400,000 | |||||||||||||||||
Business acquisition, fair value of contingent consideration | 4,700,000 | |||||||||||||||||
Business acquisition contingent consideration payments, range minimum | 0 | |||||||||||||||||
Business acquisition contingent consideration payments, range maximum | $ 10,000,000 | |||||||||||||||||
Business acquisition contingent consideration liability, current | $ 3,200,000 | 3,200,000 | ||||||||||||||||
Stock acquisition, percentage acquired | 100.00% | |||||||||||||||||
Net sales | 271,100,000 | $ 270,800,000 | ||||||||||||||||
Amount reserved as a payable related to acquisition | $ 6,000,000 | |||||||||||||||||
Reserved amount paid related to acquisition | $ 6,000,000 | |||||||||||||||||
Business acquisition acquired entity indemnification payment period | 18 months | |||||||||||||||||
Business acquisition contingent consideration liability paid | 1,700,000 | |||||||||||||||||
Pro forma net sales | 5,500,000,000 | |||||||||||||||||
Pro forma net income (loss) | $ 117,900,000 | |||||||||||||||||
Nestor Sales LLC [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Business acquisition cash paid | $ 41,800,000 | |||||||||||||||||
Stock acquisition, percentage acquired | 100.00% | |||||||||||||||||
Net sales | $ 64,900,000 | |||||||||||||||||
[1] | Revised in 2015 for the impact of the changes in accounting principle related to inventory accounting. |
Acquisitions & Dispositions - P
Acquisitions & Dispositions - Purchase Price Allocation (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||
Goodwill | $ 297,906 | $ 299,355 |
CPO [Member] | ||
Business Acquisition [Line Items] | ||
Purchase price, net of cash acquired | 32,225 | |
Accounts receivable | (2,956) | |
Inventories | (13,051) | |
Other current assets | (269) | |
Property, plant and equipment, net | (488) | |
Intangible assets | (12,800) | |
Total assets acquired | (29,564) | |
Accounts payable | 16,911 | |
Accrued liabilities | 2,580 | |
Deferred income taxes | 3,453 | |
Other long-term liabilities | 90 | |
Total liabilities assumed | 23,034 | |
Goodwill | 25,695 | |
MEDCO [Member] | ||
Business Acquisition [Line Items] | ||
Purchase price, net of cash acquired | 145,873 | |
Accounts receivable | (44,815) | |
Inventories | (55,491) | |
Other current assets | (1,299) | |
Property, plant and equipment, net | (4,408) | |
Other assets | (650) | |
Intangible assets | (40,000) | |
Total assets acquired | (146,663) | |
Accounts payable | 32,383 | |
Accrued liabilities | 5,542 | |
Deferred income taxes | 2,167 | |
Other long-term liabilities | 52 | |
Total liabilities assumed | 40,144 | |
Goodwill | 39,354 | |
NESTOR [Member] | ||
Business Acquisition [Line Items] | ||
Purchase price, net of cash acquired | 39,983 | |
Accounts receivable | (9,230) | |
Inventories | (12,067) | |
Other current assets | (339) | |
Property, plant and equipment, net | (1,251) | |
Other assets | (752) | |
Intangible assets | (16,930) | |
Total assets acquired | (40,569) | |
Accounts payable | 4,992 | |
Accrued liabilities | 1,943 | |
Deferred income taxes | 3,287 | |
Other long-term liabilities | 76 | |
Total liabilities assumed | 10,298 | |
Goodwill | $ 9,712 |
Acquisitions & Dispositions - S
Acquisitions & Dispositions - Summary of Purchased Identifiable Intangible Assets (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
CPO [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite lived intangible assets | $ 12,800 |
MEDCO [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite lived intangible assets | 40,000 |
NESTOR [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite lived intangible assets | 16,930 |
Customer relationships [Member] | CPO [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite lived intangible assets | $ 5,200 |
Finite lived intangible assets estimated life | 3 years |
Customer relationships [Member] | MEDCO [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite lived intangible assets | $ 37,590 |
Customer relationships [Member] | MEDCO [Member] | Minimum [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite lived intangible assets estimated life | 3 years |
Customer relationships [Member] | MEDCO [Member] | Maximum [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite lived intangible assets estimated life | 15 years |
Customer relationships [Member] | NESTOR [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite lived intangible assets | $ 15,570 |
Finite lived intangible assets estimated life | 13 years |
Trademarks [Member] | CPO [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite lived intangible assets | $ 7,600 |
Finite lived intangible assets estimated life | 15 years |
Trademarks [Member] | MEDCO [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite lived intangible assets | $ 2,410 |
Trademarks [Member] | MEDCO [Member] | Minimum [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite lived intangible assets estimated life | 1 year 6 months |
Trademarks [Member] | MEDCO [Member] | Maximum [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite lived intangible assets estimated life | 15 years |
Trademarks [Member] | NESTOR [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite lived intangible assets | $ 1,360 |
Trademarks [Member] | NESTOR [Member] | Minimum [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite lived intangible assets estimated life | 2 years 6 months |
Trademarks [Member] | NESTOR [Member] | Maximum [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite lived intangible assets estimated life | 15 years |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2016USD ($)$ / sharesPlansshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of share-based compensation plans | Plans | 2 | ||
Closing sale price per share | $ / shares | $ 20.90 | $ 32.51 | $ 42.16 |
Stock options granted | 5,538 | ||
Minimum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Payout based on economic profit performance against target economic profit goals | 0.00% | 0.00% | 0.00% |
Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Payout based on economic profit performance against target economic profit goals | 200.00% | 200.00% | 200.00% |
Stock Option [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ | $ 0 | ||
Stock options granted | 0 | 0 | |
Restricted Stock [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Restricted stock and restricted stock units granted | 554,491 | 462,697 | 253,042 |
Diluted earnings per share required to determine specific performance measure of stock awards | $ / shares | $ 0.50 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ | $ 16,800,000 | ||
Restricted stock and restricted stock units granted | 276,110 | 162,092 | 176,717 |
Vesting period, in years | 3 years | ||
Vesting year | 2,019 | 2,018 | |
Share-based compensation, weighed -average period for recognition | 2 years | ||
Non Employee Directors [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense, directors fees | $ | $ 100,000 | $ 100,000 | $ 100,000 |
Accumulated number of stock units outstanding | 40,189 | 41,051 | 43,082 |
Restricted stock and restricted stock units granted | 55,120 | 30,778 | 20,664 |
Employees [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Restricted stock and restricted stock units granted | 383,196 | 333,268 | 271,594 |
Executive Officer [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Restricted stock and restricted stock units granted | 392,285 | 260,743 | 137,501 |
Terms of granting restricted stock and restricted stock units | the officer is still employed as of the anniversary date of the grant, and the Company’s cumulative diluted earnings per share for the four calendar quarters immediately preceding the vesting date exceed $0.50 per diluted share as defined in the officers’ restricted stock agreement. |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Share-Based Compensation Expense (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Pre-tax expense | $ 10,202 | $ 7,895 | $ 8,195 | [1] |
Tax effect | (3,846) | (3,000) | (3,114) | |
After tax expense | $ 6,356 | $ 4,895 | $ 5,081 | |
Denominator for basic shares—Weighted average shares | 36,580 | 37,457 | 38,705 | [1] |
Denominator for diluted shares—Adjusted weighted average shares and the effect of dilutive securities | 36,918 | 37,457 | 39,130 | [1] |
Net expense per share—basic | $ 0.17 | $ 0.13 | $ 0.13 | |
Net expense per share—diluted | $ 0.17 | $ 0.13 | $ 0.13 | |
[1] | Revised in 2015 for the impact of the changes in accounting principle related to inventory accounting. |
Share-Based Compensation - Sc56
Share-Based Compensation - Schedule of Intrinsic Value of Options Outstanding, Exercisable and Exercised (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Intrinsic Value of Options, Outstanding | $ 1,253 | $ 6,092 | |
Intrinsic Value of Options, Exercisable | 1,253 | 4,543 | |
Intrinsic Value of Options, Exercised | $ 535 | $ 902 | $ 537 |
Share-Based Compensation - Sc57
Share-Based Compensation - Schedule of Intrinsic Value of Restricted Shares Outstanding and Vested (Detail) - Restricted Stock [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Intrinsic Value of Restricted Shares, Outstanding | $ 29,056 | $ 34,981 | $ 45,928 |
Intrinsic Value of Restricted Shares, Vested | $ 4,705 | $ 8,159 | $ 10,976 |
Share-Based Compensation - Sc58
Share-Based Compensation - Schedule of Stock Options (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Options outstanding - Beginning Balance, Shares | 448,687 | 727,378 | 812,160 |
Granted, Shares | 5,538 | ||
Exercised, Shares | (82,228) | (77,918) | (32,610) |
Cancelled, Shares | (35,988) | (200,773) | (57,710) |
Expired, Shares | (100,938) | ||
Options outstanding - Ending Balance, Shares | 229,533 | 448,687 | 727,378 |
Number of options exercisable, Shares | 229,533 | 195,402 | 273,320 |
Options outstanding - Beginning Balance, Weighted Average Exercise Price | $ 33.31 | $ 33.81 | $ 33.70 |
Granted, Weighted Average Exercise Price | 45.89 | ||
Exercised, Weighted Average Exercise Price | 24.94 | 24.11 | 24.43 |
Cancelled, Weighted Average Exercise Price | 38.69 | 38.71 | 38.74 |
Expired, Weighted Average Exercise Price | 31.13 | ||
Options outstanding - Ending Balance, Weighted Average Exercise Price | 36.42 | 33.31 | 33.81 |
Number of options exercisable, Weighted Average Exercise Price | $ 36.42 | $ 26.11 | $ 25.54 |
Share-Based Compensation -Sched
Share-Based Compensation -Schedule of Proceeds Related to Option Exercises and Related Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Proceeds from options exercised | $ 2,097 | $ 1,939 | $ 814 |
Tax Benefit | $ 199 | $ 340 | $ 203 |
Share-Based Compensation - Sc60
Share-Based Compensation - Schedule of Outstanding and Exercisable Options Granted (Detail) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Outstanding | 229,533 |
Exercisable | 229,533 |
25.00-30.00 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Lower exercise price | $ / shares | $ 25 |
Upper exercise price | $ / shares | $ 30 |
Outstanding | 60,216 |
Remaining Contractual Life (Years) | 7 months 6 days |
Exercisable | 60,216 |
30.01 - 35.00 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Lower exercise price | $ / shares | $ 30.01 |
Upper exercise price | $ / shares | $ 35 |
Outstanding | 2,246 |
Remaining Contractual Life (Years) | 4 months 24 days |
Exercisable | 2,246 |
35.01 - 40.00 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Lower exercise price | $ / shares | $ 35.01 |
Upper exercise price | $ / shares | $ 40 |
Outstanding | 161,533 |
Remaining Contractual Life (Years) | 6 years 1 month 6 days |
Exercisable | 161,533 |
45.01 - 50.00 [Member] | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Lower exercise price | $ / shares | $ 45.01 |
Upper exercise price | $ / shares | $ 50 |
Outstanding | 5,538 |
Remaining Contractual Life (Years) | 7 years |
Exercisable | 5,538 |
Share-Based Compensation - Sc61
Share-Based Compensation - Schedule of Restricted Stock and RSU Grants and Changes (Detail) - Restricted Stock and RSUs [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Beginning Balance, Shares outstanding | 1,076,000 | 1,089,374 | 1,041,189 |
Granted, Shares | 830,601 | 624,789 | 429,759 |
Vested, Shares | (196,394) | (212,537) | (237,739) |
Cancelled, Shares | (319,965) | (425,626) | (143,835) |
Ending Balance, Shares outstanding | 1,390,242 | 1,076,000 | 1,089,374 |
Shares outstanding - Weighted Average Grant Date Fair Value | $ 36.13 | $ 31.23 | $ 31.24 |
Granted, Weighted Average Grant Date Fair Value | 24.34 | 36.79 | 40.52 |
Vested, Weighted Average Grant Date Fair Value | 37.32 | 33.94 | 41.59 |
Cancelled, Weighted Average Grant Date Fair Value | 36.31 | 34.58 | 34.04 |
Shares outstanding - Weighted Average Grant Date Fair Value | $ 28.88 | $ 36.13 | $ 31.23 |
Goodwill and Intangible Asset62
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | Oct. 01, 2014 | Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | [1] |
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||||
Goodwill impairment | $ 9,000,000 | |||||
Additional reserves in inventory | $ 4,900,000 | |||||
Loss on disposition of business | 1,461,000 | $ (800,000) | ||||
Goodwill | $ 297,906,000 | 299,355,000 | ||||
Intangible assets, net | 83,690,000 | 96,413,000 | ||||
Acquisition related costs | 0 | 0 | ||||
Amortization of intangible assets | 12,238,000 | 15,143,000 | $ 8,623,000 | |||
Accumulated amortization of intangible assets | $ 72,115,000 | 59,857,000 | ||||
Azerty de Mexico [Member] | ||||||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||||
Goodwill impairment | 3,300,000 | |||||
Loss on disposition of business | $ 1,500,000 | |||||
MBS Dev [Member] | ||||||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||||
Loss on disposition of business | $ 8,200,000 | |||||
Industrial [Member] | ||||||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||||
Goodwill impairment | $ 113,800,000 | |||||
[1] | Revised in 2015 for the impact of the changes in accounting principle related to inventory accounting. |
Goodwill and Intangible Asset63
Goodwill and Intangible Assets - Summary of Changes in Carrying Amount of Goodwill (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill, balance as of December 31, 2015 | $ 299,355 |
Purchase accounting adjustments | (1,858) |
Currency translation adjustment | 409 |
Goodwill, balance as of December 31, 2016 | $ 297,906 |
Goodwill and Intangible Asset64
Goodwill and Intangible Assets - Summary of Intangible Assets of Company by Major Class (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule Of Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, Gross Carrying Amount | $ 155,805 | $ 156,270 |
Intangible assets subject to amortization, Accumulated Amortization | (72,115) | (59,857) |
Intangible assets subject to amortization, Net Carrying Amount | 83,690 | 96,413 |
Customer relationships and other intangibles [Member] | ||
Schedule Of Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, Gross Carrying Amount | 137,452 | 137,938 |
Intangible assets subject to amortization, Accumulated Amortization | (62,235) | (51,357) |
Intangible assets subject to amortization, Net Carrying Amount | $ 75,217 | $ 86,581 |
Intangible assets subject to amortization, Weighted Average Useful Life (years) | 16 years | 16 years |
Non-compete Agreements [Member] | ||
Schedule Of Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, Gross Carrying Amount | $ 4,649 | $ 4,644 |
Intangible assets subject to amortization, Accumulated Amortization | (4,260) | (4,260) |
Intangible assets subject to amortization, Net Carrying Amount | $ 389 | $ 384 |
Intangible assets subject to amortization, Weighted Average Useful Life (years) | 4 years | 4 years |
Trademarks [Member] | ||
Schedule Of Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, Gross Carrying Amount | $ 13,704 | $ 13,688 |
Intangible assets subject to amortization, Accumulated Amortization | (5,620) | (4,240) |
Intangible assets subject to amortization, Net Carrying Amount | $ 8,084 | $ 9,448 |
Intangible assets subject to amortization, Weighted Average Useful Life (years) | 14 years | 14 years |
Goodwill and Intangible Asset65
Goodwill and Intangible Assets - Summary of Amortization Expense Expected to be Incurred Over Next Five Years on Intangible Assets (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2,017 | $ 10,777 |
2,018 | 8,039 |
2,019 | 6,922 |
2,020 | 6,919 |
2,021 | $ 6,919 |
Severance and Restructuring C66
Severance and Restructuring Charges - Schedule of Expenses, Cash Flows, and Accrued Liabilities Associated with Restructuring Actions (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost And Reserve [Line Items] | ||
Cash flow associated with restructuring actions | $ 1,225 | $ 4,473 |
Accrued Liabilities associated with restructuring actions | 758 | |
Warehousing, Marketing and Administrative Expenses [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Expenses associated with restructuring actions | (256) | 6,712 |
First Quarter 2015 Actions Workforce Reduction [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Cash flow associated with restructuring actions | 539 | 3,660 |
Accrued Liabilities associated with restructuring actions | 758 | |
First Quarter 2015 Actions Workforce Reduction [Member] | Warehousing, Marketing and Administrative Expenses [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Expenses associated with restructuring actions | (510) | 5,467 |
First Quarter 2015 Actions Facility Closure [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Cash flow associated with restructuring actions | 686 | 813 |
First Quarter 2015 Actions Facility Closure [Member] | Warehousing, Marketing and Administrative Expenses [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Expenses associated with restructuring actions | 254 | 1,245 |
Fourth Quarter 2015 Action Workforce Reduction [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Cash flow associated with restructuring actions | 8,954 | 785 |
Accrued Liabilities associated with restructuring actions | 1,424 | |
Fourth Quarter 2015 Action Workforce Reduction [Member] | Warehousing, Marketing and Administrative Expenses [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Expenses associated with restructuring actions | $ (700) | $ 11,863 |
Accumulated Other Comprehensi67
Accumulated Other Comprehensive Income (Loss) - Change in Accumulated Other Comprehensive Income (Loss) (AOCI) by Component, Net of Tax (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | [1] | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
AOCI, balance as of December 31, 2015 | $ 723,734 | |||
Other comprehensive (loss) income before reclassifications | (437) | |||
Settlement loss reclassified from AOCI | 7,666 | |||
Amounts reclassified from AOCI | 3,906 | |||
Total other comprehensive (loss) income, net of tax | 11,135 | $ 5,200 | $ (22,903) | |
AOCI, balance as of December 31, 2016 | 781,106 | 723,734 | ||
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
AOCI, balance as of December 31, 2015 | (9,866) | |||
Other comprehensive (loss) income before reclassifications | 1,427 | |||
Total other comprehensive (loss) income, net of tax | 1,427 | |||
AOCI, balance as of December 31, 2016 | (8,439) | (9,866) | ||
Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
AOCI, balance as of December 31, 2015 | 146 | |||
Other comprehensive (loss) income before reclassifications | (565) | |||
Amounts reclassified from AOCI | 591 | |||
Total other comprehensive (loss) income, net of tax | 26 | |||
AOCI, balance as of December 31, 2016 | 172 | 146 | ||
Defined Benefit Pension Plans [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
AOCI, balance as of December 31, 2015 | (47,871) | |||
Other comprehensive (loss) income before reclassifications | (1,299) | |||
Settlement loss reclassified from AOCI | 7,666 | |||
Amounts reclassified from AOCI | 3,315 | |||
Total other comprehensive (loss) income, net of tax | 9,682 | |||
AOCI, balance as of December 31, 2016 | (38,189) | (47,871) | ||
AOCI, Total [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
AOCI, balance as of December 31, 2015 | (57,591) | |||
AOCI, balance as of December 31, 2016 | $ (46,456) | $ (57,591) | ||
[1] | Revised in 2015 for the impact of the changes in accounting principle related to inventory accounting. |
Accumulated Other Comprehensi68
Accumulated Other Comprehensive Income (Loss) - Amounts Reclassified Out of AOCI into Income Statement (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | [1] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||
Cost of goods sold | $ 4,609,161 | $ 4,526,551 | $ 4,524,676 | |||||||||||
Warehousing, marketing and administrative expenses | 629,825 | 675,913 | 595,673 | |||||||||||
Defined benefit plan settlement loss | 12,510 | |||||||||||||
Tax provision | (30,803) | (54,541) | (70,773) | |||||||||||
Net income (loss) | $ (2,353) | $ 36,742 | $ 12,933 | $ 16,530 | $ (95,836) | $ 27,667 | $ 29,834 | $ (6,007) | 63,852 | [1] | $ (44,342) | [1] | $ 112,115 | |
Amount Reclassified From AOCI [Member] | ||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||
Net income (loss) | 11,572 | |||||||||||||
Amount Reclassified From AOCI [Member] | Cash Flow Hedges [Member] | ||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||
Cost of goods sold | (42) | |||||||||||||
Tax provision | (374) | |||||||||||||
Net income (loss) | 591 | |||||||||||||
Amount Reclassified From AOCI [Member] | Defined Benefit Pension Plans [Member] | ||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||
Warehousing, marketing and administrative expenses | 5,429 | |||||||||||||
Defined benefit plan settlement loss | 12,510 | |||||||||||||
Tax provision | (6,958) | |||||||||||||
Net income (loss) | 10,981 | |||||||||||||
Amount Reclassified From AOCI [Member] | Interest Rate Swap [Member] | Cash Flow Hedges [Member] | ||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||
Interest expense, net | $ 1,007 | |||||||||||||
[1] | Revised in 2015 for the impact of the changes in accounting principle related to inventory accounting. |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Earnings Per Share [Line Items] | ||||
Additional authorized repurchase amount | $ 68,200 | |||
Number of shares repurchased | 241,270 | 1,822,227 | ||
Repurchase of common stock, value | [1] | $ 6,839 | $ 67,446 | $ 50,591 |
Treasury stock reissued, shares | 468,142 | 362,874 | 250,747 | |
Stock Option [Member] | ||||
Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share amount | 200,000 | 300,000 | 500,000 | |
Common Stock [Member] | ||||
Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share amount | 400,000 | |||
[1] | Revised in 2015 for the impact of the changes in accounting principle related to inventory accounting. |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Earnings Per Share [Abstract] | ||||||||||||||
Net income (loss) | $ (2,353) | $ 36,742 | $ 12,933 | $ 16,530 | $ (95,836) | $ 27,667 | $ 29,834 | $ (6,007) | $ 63,852 | [1] | $ (44,342) | [1] | $ 112,115 | [1] |
Denominator for basic earnings per share - weighted average shares | 36,580 | 37,457 | 38,705 | [1] | ||||||||||
Effect of dilutive securities: Employee stock options and restricted units | 338 | 425 | ||||||||||||
Denominator for diluted earnings per share - Adjusted weighted average shares and the effect of dilutive securities | 36,918 | 37,457 | 39,130 | [1] | ||||||||||
Net income (loss) per share - basic | $ (0.06) | $ 1 | $ 0.35 | $ 0.45 | $ (2.61) | $ 0.74 | $ 0.79 | $ (0.16) | $ 1.75 | $ (1.18) | $ 2.90 | [1] | ||
Net income (loss) per share - diluted | $ (0.06) | $ 0.99 | $ 0.35 | $ 0.45 | $ (2.61) | $ 0.74 | $ 0.78 | $ (0.16) | $ 1.73 | $ (1.18) | $ 2.87 | [1] | ||
[1] | Revised in 2015 for the impact of the changes in accounting principle related to inventory accounting. |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)ProductCustomerSegmentSupplier | Dec. 31, 2015USD ($)ProductCustomerSupplier | Dec. 31, 2014USD ($)ProductCustomerSupplier | ||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | $ 1,254,699 | $ 1,407,504 | $ 1,354,523 | $ 1,352,296 | $ 1,297,327 | $ 1,391,545 | $ 1,341,799 | $ 1,332,375 | $ 5,369,022 | $ 5,363,046 | $ 5,327,205 | [1] |
Number of Operating Segments | Segment | 4 | |||||||||||
Number of supplier accounted for more than specified purchases | Supplier | 0 | 0 | 0 | |||||||||
Number of single customer accounted for more than specified sales | Customer | 0 | 0 | 0 | |||||||||
Number of single customer accounted for more than consolidated accounts receivable | Customer | 0 | 0 | ||||||||||
Number of individual product represented for more than specified sales | Product | 0 | 0 | 0 | |||||||||
Equity Method Investee [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Purchases from buying group through equity ownership | $ 18,100 | $ 13,800 | ||||||||||
Payables to buying group through equity ownership | 700 | 1,400 | $ 700 | $ 1,400 | ||||||||
Supplier Concentration Risk [Member] | Cost of Goods, Total [Member] | Hewlett Packard [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Percentage of consolidated net sales | 20.00% | 14.00% | 16.00% | |||||||||
Customer Concentration Risk [Member] | Sales Revenue, Services, Net [Member] | WB Mason [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Percentage of consolidated net sales | 11.00% | 12.00% | 12.00% | |||||||||
MEXICO [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | $ 69,400 | $ 121,900 | $ 147,200 | |||||||||
Long-lived assets | $ 30,900 | $ 32,200 | $ 30,900 | $ 32,200 | $ 42,500 | |||||||
[1] | Revised in 2015 for the impact of the changes in accounting principle related to inventory accounting. |
Segment Information - Schedule
Segment Information - Schedule of Net Sales by Product Category (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | $ 1,254,699 | $ 1,407,504 | $ 1,354,523 | $ 1,352,296 | $ 1,297,327 | $ 1,391,545 | $ 1,341,799 | $ 1,332,375 | $ 5,369,022 | $ 5,363,046 | $ 5,327,205 | [1] |
Janitorial, foodservice and breakroom supplies (JanSan) [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 1,435,476 | 1,457,993 | 1,443,242 | |||||||||
Technology products [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 1,347,652 | 1,363,146 | 1,447,661 | |||||||||
Traditional office products [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 860,324 | 860,024 | 861,649 | |||||||||
Industrial supplies [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 560,682 | 586,580 | 601,937 | |||||||||
Cut sheet paper [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 394,650 | 343,604 | 465,400 | |||||||||
Automotive [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 316,546 | 279,966 | 33,709 | |||||||||
Office furniture [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 298,655 | 318,870 | 312,203 | |||||||||
Freight and other [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | $ 155,037 | $ 152,863 | $ 161,404 | |||||||||
[1] | Revised in 2015 for the impact of the changes in accounting principle related to inventory accounting. |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Jun. 30, 2017 | Feb. 22, 2017 | Jul. 08, 2013 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | Jan. 15, 2014 |
Debt Instrument [Line Items] | |||||||
FILO borrowing base percentage of accounts receivable | 10.00% | ||||||
FILO borrowing base percentage of liquidation value of inventory | 10.00% | ||||||
Percentage of outstanding debt priced | 75.40% | ||||||
Effective interest rate | 2.50% | ||||||
Percentage of debt unhedged | 50.90% | ||||||
Maximum basis-point change that would not affect annual interest expense | 0.50% | ||||||
Amount due to movement in interest rates | $ 1,500,000 | ||||||
Maximum amount of financing upon amendment of program | 200,000,000 | ||||||
Receivables sold to Investors | $ 500,300,000 | $ 448,600,000 | |||||
2017 Credit Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit agreement commencement date | Feb. 22, 2017 | ||||||
Credit facility | $ 1,000,000,000 | ||||||
Line of credit facility, collateral amount | $ 165,000,000 | ||||||
Line of credit facility, interest rate description | Borrowings under the 2017 Credit Agreement bear interest at LIBOR for specified interest periods, at the REVLIBOR30 Rate (as defined in the 2017 Credit Agreement) or at the Alternate Base Rate (as defined in the 2017 Credit Agreement), plus, in each case, a margin determined based on the Company’s average quarterly revolving availability. Depending on the Company’s average quarterly revolving availability, the margin on LIBOR-based loans and REVLIBOR30 Rate-based loans ranges from 1.25% to 1.75% for revolving and term loans and 2.00% to 2.50% for FILO loans, and on Alternate Base Rate loans ranges from 0.25% to 0.75% for revolving and term loans and 1.00% to 1.50% for FILO loans. As of closing to June 30, 2017, the applicable margin for LIBOR-based loans and REVLIBOR30 Rate-based loans is 1.50% for revolving and term loans and 2.25% for FILO loans, and for Alternate Base Rate loans is 0.50% for revolving and term loans and 1.25% for FILO loans. In addition, ECO is required to pay the lenders a commitment fee on the unutilized portion of the revolving and FILO commitments under the 2017 Credit Agreement at a rate per annum equal to 0.25%. | ||||||
Borrowing base calculation, description | Availability of credit under the revolving facility will be subject to a revolving borrowing base calculation comprised of a certain percentage of the eligible accounts receivable, plus a certain percentage of the eligible inventory, less reserves. Similarly, availability under the FILO revolving credit facility is subject to a FILO borrowing base comprised primarily of 10% of the eligible accounts receivable, plus 10% multiplied by the net orderly liquidation value percentages of the eligible inventory, less reserves. | ||||||
2017 Credit Agreement [Member] | LIBOR Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.125% | ||||||
2017 Credit Agreement [Member] | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 1,000,000,000 | ||||||
Fee on unutilized portion of commitments | 0.25% | ||||||
2017 Credit Agreement [Member] | Revolving Credit Facility [Member] | Scenario Forecast [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Alternate base rate loans rates | 0.50% | ||||||
2017 Credit Agreement [Member] | Revolving Credit Facility [Member] | REVLIBOR30 And LIBOR Based Loan [Member] | Scenario Forecast [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility loan rates | 1.50% | ||||||
2017 Credit Agreement [Member] | First In Last Out Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 100,000,000 | ||||||
Fee on unutilized portion of commitments | 0.25% | ||||||
2017 Credit Agreement [Member] | First In Last Out Revolving Credit Facility [Member] | Scenario Forecast [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Alternate base rate loans rates | 1.25% | ||||||
2017 Credit Agreement [Member] | First In Last Out Revolving Credit Facility [Member] | REVLIBOR30 And LIBOR Based Loan [Member] | Scenario Forecast [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility loan rates | 2.25% | ||||||
2017 Credit Agreement [Member] | Term Loan Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 77,600,000 | ||||||
Line of credit facility, funding date | Apr. 21, 2017 | ||||||
2017 Credit Agreement [Member] | Term Loan Facility [Member] | Scenario Forecast [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Alternate base rate loans rates | 0.50% | ||||||
2017 Credit Agreement [Member] | Term Loan Facility [Member] | REVLIBOR30 And LIBOR Based Loan [Member] | Scenario Forecast [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility loan rates | 1.50% | ||||||
2017 Credit Agreement [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt-to-EBITDA ratio | 3.50% | ||||||
Letters of credit issued amount | $ 25,000,000 | ||||||
2017 Credit Agreement [Member] | Maximum [Member] | Swingline Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 100,000,000 | ||||||
2017 Credit Agreement [Member] | Maximum [Member] | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Alternate base rate loans rates | 0.75% | ||||||
2017 Credit Agreement [Member] | Maximum [Member] | Revolving Credit Facility [Member] | REVLIBOR30 And LIBOR Based Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility loan rates | 1.75% | ||||||
2017 Credit Agreement [Member] | Maximum [Member] | First In Last Out Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Alternate base rate loans rates | 1.50% | ||||||
2017 Credit Agreement [Member] | Maximum [Member] | First In Last Out Revolving Credit Facility [Member] | REVLIBOR30 And LIBOR Based Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility loan rates | 2.50% | ||||||
2017 Credit Agreement [Member] | Maximum [Member] | Term Loan Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Alternate base rate loans rates | 0.75% | ||||||
2017 Credit Agreement [Member] | Maximum [Member] | Term Loan Facility [Member] | REVLIBOR30 And LIBOR Based Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility loan rates | 1.75% | ||||||
2017 Credit Agreement [Member] | Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt-to-EBITDA ratio | 3.00% | ||||||
2017 Credit Agreement [Member] | Minimum [Member] | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Alternate base rate loans rates | 0.25% | ||||||
2017 Credit Agreement [Member] | Minimum [Member] | Revolving Credit Facility [Member] | REVLIBOR30 And LIBOR Based Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility loan rates | 1.25% | ||||||
2017 Credit Agreement [Member] | Minimum [Member] | First In Last Out Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Alternate base rate loans rates | 1.00% | ||||||
2017 Credit Agreement [Member] | Minimum [Member] | First In Last Out Revolving Credit Facility [Member] | REVLIBOR30 And LIBOR Based Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility loan rates | 2.00% | ||||||
2017 Credit Agreement [Member] | Minimum [Member] | Term Loan Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Alternate base rate loans rates | 0.25% | ||||||
2017 Credit Agreement [Member] | Minimum [Member] | Term Loan Facility [Member] | REVLIBOR30 And LIBOR Based Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility loan rates | 1.25% | ||||||
3.75% Senior Secured Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, maturity date | Jan. 15, 2012 | ||||||
Receivables Securitization Program [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility | $ 200,000,000 | 200,000,000 | |||||
Receivables Securitization Program [Member] | ESR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility | $ 200,000,000 | ||||||
2013 Note Purchase Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, maturity date | Jan. 15, 2021 | ||||||
Basis spread on variable rate | 3.75% | ||||||
Effective interest rate | 4.285% | ||||||
Senior Secured notes | $ 150,000,000 | ||||||
2013 Note Purchase Agreement [Member] | Letter of Credit [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Letter of credit issued | $ 165,000,000 | ||||||
2013 Credit Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit agreement period | 5 years | ||||||
Maximum borrowing capacity | 700,000,000 | ||||||
Credit facility | $ 260,400,000 | $ 368,400,000 | |||||
Alternate base rate loans rates | 0.50% | ||||||
Effective interest rate | 3.66% | ||||||
Credit agreement termination, month and year | 2017-02 | ||||||
Outstanding letters of credit | $ 12,500,000 | ||||||
LIBOR-based loans rates | 1.50% | ||||||
2013 Credit Agreement [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Alternate base rate loans rates | 1.00% | ||||||
LIBOR-based loans rates | 2.00% | ||||||
2013 Credit Agreement [Member] | Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Alternate base rate loans rates | 0.00% | ||||||
LIBOR-based loans rates | 1.00% | ||||||
Subsequent Event [Member] | 2017 Credit Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit agreement period | 5 years | ||||||
Credit facility | $ 672,500,000 | ||||||
Subsequent Event [Member] | 3.75% Senior Secured Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, interest rate, stated percentage | 3.75% |
Debt - Schedule of Long-Term De
Debt - Schedule of Long-Term Debt Components (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Capital Lease | $ 0.1 | $ 0.1 |
Transaction Costs | (1.5) | (2.2) |
Total | 609 | 716.3 |
2013 Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Credit Agreement | 260.4 | 368.4 |
2013 Note Purchase Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Note Purchase Agreement | 150 | 150 |
Receivables Securitization Program [Member] | ||
Debt Instrument [Line Items] | ||
Credit Agreement | $ 200 | $ 200 |
Debt - Schedule of Debt Maturit
Debt - Schedule of Debt Maturities (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 460.4 |
2,021 | 150 |
Total | $ 610.4 |
Debt - Schedule of Debt Matur76
Debt - Schedule of Debt Maturities (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | |
Debt Instrument maturity year | 2,018 |
2017 Credit Agreement [Member] | |
Debt Instrument [Line Items] | |
Total borrowings due in 2022 | $ 522.5 |
Leases, Contractual Obligatio77
Leases, Contractual Obligations and Contingencies - Schedule of Future Minimum Lease Payments under Operating Leases (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Leases [Abstract] | |
2,017 | $ 50,747 |
2,018 | 47,871 |
2,019 | 44,229 |
2,020 | 34,994 |
2,021 | 24,290 |
Thereafter | 72,113 |
Total required lease payments | $ 274,244 |
Leases, Contractual Obligatio78
Leases, Contractual Obligations and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Sale Leaseback Transaction [Line Items] | ||||
Operating lease expense | $ 51 | $ 48.4 | $ 45.1 | |
Facility in City of Industry [Member] | CA | ||||
Sale Leaseback Transaction [Line Items] | ||||
Sale and leaseback agreement date | September 2,016 | |||
Purchase price for sale of facility | $ 31.7 | |||
Subsequent leaseback period | 2 years | |||
Classification of lease | operating lease | |||
Sale and leaseback, deferred gain amortized into income over lease term | $ 2.8 | |||
Warehousing, Marketing and Administrative Expenses [Member] | Facility in City of Industry [Member] | CA | ||||
Sale Leaseback Transaction [Line Items] | ||||
Sale and leaseback, recorded gain | $ 20.5 | |||
Other Long-Term Liabilities [Member] | Facility in City of Industry [Member] | CA | ||||
Sale Leaseback Transaction [Line Items] | ||||
Sale and leaseback, deferred gain | $ 1 | |||
Other Current Liabilities [Member] | Facility in City of Industry [Member] | CA | ||||
Sale Leaseback Transaction [Line Items] | ||||
Sale and leaseback, deferred gain | $ 1.4 |
Pension Plans and Defined Con79
Pension Plans and Defined Contribution Plan - Additional Information (Detail) $ in Thousands | Feb. 27, 2017USD ($) | Dec. 31, 2016USD ($)Participant | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Defined Benefit Plan Disclosure [Line Items] | ||||
Accumulated benefit obligation | $ 182,253 | $ 211,389 | $ 224,086 | |
Improvement to net funded status of plan | 7,100 | |||
Settlement of Pension Plan, net impact on shareholders' equity | 2,400 | |||
Reduction of unrecognized actuarial loss included in accumulated and other comprehensive income | 14,900 | |||
Pension settlement charge | $ 12,510 | |||
Compensation increase rate | 0.00% | 0.00% | 0.00% | |
Expense associated with company contributions | $ 7,100 | $ 5,900 | $ 5,500 | |
Essendant Union Employee Pension Plan [Member] | Subsequent Event [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Cash contribution to pension plan during the period | $ 5,000 | |||
Essendant Pension Plan [Member] | Subsequent Event [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Cash contribution to pension plan during the period | $ 5,000 | |||
Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Active associates in the pension plan | Participant | 2,250 | |||
Accumulated benefit obligation | $ 182,300 | |||
Pension settlement charge | 12,510 | |||
Estimated net actuarial loss that will be amortized from accumulated other comprehensive loss | 4,200 | |||
Estimated prior service cost that will be amortized from accumulated other comprehensive loss | 300 | |||
Cash contribution to pension plan during the period | $ 10,000 | $ 2,000 | ||
Pension Plans [Member] | General Plan Assets [Member] | Fixed Income [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocations for plan assets | 45.00% | |||
Pension Plans [Member] | General Plan Assets [Member] | Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocations for plan assets | 36.00% | |||
Pension Plans [Member] | General Plan Assets [Member] | Domestic Real Estate [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocations for plan assets | 9.00% | |||
Pension Plans [Member] | General Plan Assets [Member] | Hedge Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocations for plan assets | 10.00% | |||
Pension Plans [Member] | Union Plan Assets [Member] | Fixed Income [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocations for plan assets | 16.00% | |||
Pension Plans [Member] | Union Plan Assets [Member] | Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocations for plan assets | 62.00% | |||
Pension Plans [Member] | Union Plan Assets [Member] | Domestic Real Estate [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocations for plan assets | 12.00% | |||
Pension Plans [Member] | Union Plan Assets [Member] | Hedge Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocations for plan assets | 10.00% |
Pension Plans and Defined Con80
Pension Plans and Defined Contribution Plan - Schedule of Reconciliation of Changes in Projected Benefit Obligation (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | ||
Benefit obligation at beginning of year | $ 211,389 | $ 224,086 |
Service cost—benefit earned during the period | 1,269 | 1,495 |
Interest cost on projected benefit obligation | 8,073 | 8,997 |
Actuarial (gain) loss | 4,547 | (16,846) |
Benefits paid | (2,952) | (6,343) |
Settlements | (40,073) | |
Benefit obligation at end of year | $ 182,253 | $ 211,389 |
Pension Plans and Defined Con81
Pension Plans and Defined Contribution Plan - Schedule of Change in Plan Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year | $ 162,977 | |
Benefits paid | (2,952) | $ (6,343) |
Fair value of plan assets at end of year | 142,088 | 162,977 |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year | 162,977 | 173,771 |
Actual return on plan assets | 12,136 | (6,451) |
Company contributions | 10,000 | 2,000 |
Benefits paid | (2,952) | (6,343) |
Settlements | (40,073) | |
Fair value of plan assets at end of year | $ 142,088 | $ 162,977 |
Pension Plans and Defined Con82
Pension Plans and Defined Contribution Plan - Schedule of Pension Plan Investment Allocations (Detail) - Pension Plans [Member] | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 100.00% | 100.00% |
Cash [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 0.60% | 0.40% |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 50.80% | 37.80% |
Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 27.40% | 40.50% |
Real Assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 4.80% | 10.80% |
Hedge Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 11.90% | 10.50% |
Master Limited Partnerships [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, asset allocations | 4.50% |
Pension Plans and Defined Con83
Pension Plans and Defined Contribution Plan - Schedule of Fair Values of Pension Plan Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 142,088 | $ 162,977 |
Cash [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 874 | 655 |
Domestic Real Estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 4,204 | 10,464 |
Commodities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2,563 | 7,089 |
Hedge Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 16,962 | 17,155 |
Master Limited Partnerships [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 6,368 | |
Equity Securities [Member] | U.S. Large Cap [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 27,779 | 23,072 |
Equity Securities [Member] | International [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 21,960 | 18,211 |
Equity Securities [Member] | Emerging Markets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 12,504 | 13,127 |
Equity Securities [Member] | U.S. Small Cap [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 9,974 | 7,256 |
Fixed Income [Member] | U.S. Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 36,778 | 59,517 |
Fixed Income [Member] | U.S. Inflation Protected Bonds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 403 | 1,236 |
Fixed Income [Member] | High Yield Bonds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 912 | 2,295 |
Fixed Income [Member] | International Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 807 | 2,900 |
Quoted Prices in Active Markets for Identical Assets or Liabilities Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 125,126 | 145,822 |
Quoted Prices in Active Markets for Identical Assets or Liabilities Level 1 [Member] | Cash [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 874 | 655 |
Quoted Prices in Active Markets for Identical Assets or Liabilities Level 1 [Member] | Domestic Real Estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 4,204 | 10,464 |
Quoted Prices in Active Markets for Identical Assets or Liabilities Level 1 [Member] | Commodities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2,563 | 7,089 |
Quoted Prices in Active Markets for Identical Assets or Liabilities Level 1 [Member] | Master Limited Partnerships [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 6,368 | |
Quoted Prices in Active Markets for Identical Assets or Liabilities Level 1 [Member] | Equity Securities [Member] | U.S. Large Cap [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 27,779 | 23,072 |
Quoted Prices in Active Markets for Identical Assets or Liabilities Level 1 [Member] | Equity Securities [Member] | International [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 21,960 | 18,211 |
Quoted Prices in Active Markets for Identical Assets or Liabilities Level 1 [Member] | Equity Securities [Member] | Emerging Markets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 12,504 | 13,127 |
Quoted Prices in Active Markets for Identical Assets or Liabilities Level 1 [Member] | Equity Securities [Member] | U.S. Small Cap [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 9,974 | 7,256 |
Quoted Prices in Active Markets for Identical Assets or Liabilities Level 1 [Member] | Fixed Income [Member] | U.S. Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 36,778 | 59,517 |
Quoted Prices in Active Markets for Identical Assets or Liabilities Level 1 [Member] | Fixed Income [Member] | U.S. Inflation Protected Bonds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 403 | 1,236 |
Quoted Prices in Active Markets for Identical Assets or Liabilities Level 1 [Member] | Fixed Income [Member] | High Yield Bonds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 912 | 2,295 |
Quoted Prices in Active Markets for Identical Assets or Liabilities Level 1 [Member] | Fixed Income [Member] | International Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 807 | 2,900 |
Significant Other Observable Inputs Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 16,962 | 17,155 |
Significant Other Observable Inputs Level 2 [Member] | Hedge Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 16,962 | $ 17,155 |
Pension Plans and Defined Con84
Pension Plans and Defined Contribution Plan - Schedule of Fair Values of Pension Plan Assets (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | ||
Minimum investment for funding in assets | 98.00% | 98.00% |
Pension Plans and Defined Con85
Pension Plans and Defined Contribution Plan - Schedule of Plan Funded Status (Detail) - Pension Plans [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Funded status of the plan | $ (40,165) | $ (48,412) |
Unrecognized prior service cost | 2,574 | 2,869 |
Unrecognized net actuarial loss | 58,957 | 74,461 |
Net amount recognized | $ 21,366 | $ 28,918 |
Pension Plans and Defined Con86
Pension Plans and Defined Contribution Plan - Schedule of Amounts Recognized in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued benefit liability | $ (40,165) | $ (48,412) |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued benefit liability | (40,165) | (48,412) |
Accumulated other comprehensive income | 61,531 | 77,330 |
Net amount recognized | $ 21,366 | $ 28,918 |
Pension Plans and Defined Con87
Pension Plans and Defined Contribution Plan - Schedule of Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost—benefit earned during the period | $ 1,269 | $ 1,495 | |
Interest cost on projected benefit obligation | 8,073 | 8,997 | |
Defined benefit plan settlement loss | 12,510 | ||
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost—benefit earned during the period | 1,269 | 1,495 | $ 1,069 |
Interest cost on projected benefit obligation | 8,073 | 8,997 | 8,960 |
Expected return on plan assets | (9,730) | (11,217) | (10,286) |
Amortization of prior service cost | 295 | 296 | 182 |
Amortization of actuarial loss | 5,134 | 5,862 | 3,674 |
Defined benefit plan settlement loss | 12,510 | ||
Net periodic pension cost | $ 17,551 | $ 5,433 | $ 3,599 |
Pension Plans and Defined Con88
Pension Plans and Defined Contribution Plan - Schedule of Actuarial Assumptions for Discount Rates, Expected Long-Term Rates of Return on Plan Assets (Detail) - Pension Plans [Member] | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
General Plan Assets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assumed discount rate | 4.18% | 4.52% | 4.09% |
Expected long-term rate of return on plan assets | 6.30% | 6.50% | 6.30% |
Union Plan Assets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assumed discount rate | 4.22% | 4.55% | 4.16% |
Expected long-term rate of return on plan assets | 6.20% | 6.30% | 7.30% |
Pension Plans and Defined Con89
Pension Plans and Defined Contribution Plan - Schedule of Estimated Future Benefit Payments (Detail) - Pension Plans [Member] $ in Thousands | Dec. 31, 2016USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | $ 9,198 |
2,018 | 7,984 |
2,019 | 8,833 |
2,020 | 9,292 |
2,021 | 9,027 |
2022-2026 | $ 50,839 |
Preferred Stock - Additional In
Preferred Stock - Additional Information (Detail) - shares | Dec. 31, 2016 | Dec. 31, 2015 |
Equity [Abstract] | ||
Preferred stock, shares authorized | 15,000,000 | |
Preferred stock outstanding | 0 | 0 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Income Tax Disclosure [Abstract] | ||||
Currently Payable, Federal | $ 34,867 | $ 67,702 | $ 72,513 | |
Currently Payable, State | 5,255 | 8,387 | 8,334 | |
Currently Payable, Foreign | 1,305 | 1,614 | 805 | |
Total currently payable | 41,427 | 77,703 | 81,652 | |
Deferred, net-Federal | (9,554) | (20,929) | (9,510) | |
Deferred, net-State | (779) | (1,778) | (1,085) | |
Deferred, net-Foreign | (291) | (455) | (284) | |
Total deferred, net | (10,624) | (23,162) | (10,879) | [1] |
Provision for income taxes | $ 30,803 | $ 54,541 | $ 70,773 | [1] |
[1] | Revised in 2015 for the impact of the changes in accounting principle related to inventory accounting. |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rates Varied from Statutory Federal Income Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Income Tax Disclosure [Abstract] | ||||
Tax provision based on the federal statutory rate, Amount | $ 33,130 | $ 3,569 | $ 64,011 | |
State and local income taxes—net of federal income tax benefit, Amount | 2,639 | 374 | 4,362 | |
Impairment of goodwill, Amount | 47,468 | (4) | ||
Valuation allowances, Amount | (4,265) | 1,217 | 3,027 | |
Tax effects of foreign dividend payments, Amount | 1,756 | |||
Research and development tax credit, Amount | (1,237) | |||
Non-deductible and other, Amount | (1,220) | 1,913 | (623) | |
Provision for income taxes | $ 30,803 | $ 54,541 | $ 70,773 | [1] |
% of Pre-tax Income of Tax provision based on the federal statutory rate | 35.00% | 35.00% | 35.00% | |
% of Pre-tax Income of State and local income taxes-net of federal income tax benefit | 2.80% | 3.60% | 2.40% | |
% of Pre-tax Income of Impairment of goodwill | 465.50% | |||
% of Pre-tax Income of Valuation allowances | (4.50%) | 11.90% | 1.70% | |
% of Pre-tax Income of Tax effects of foreign dividend payments | 1.80% | |||
% of Pre-tax Income of Research and development tax credit | (1.30%) | |||
% of Pre-tax Income of Non-deductible and other | (1.30%) | 18.80% | (0.40%) | |
% of Pre-tax Income of Provision for income taxes | 32.50% | 534.80% | 38.70% | |
[1] | Revised in 2015 for the impact of the changes in accounting principle related to inventory accounting. |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Assets, Accrued expenses | $ 16,742 | $ 14,287 |
Assets, Allowance for doubtful accounts | 15,155 | 10,355 |
Assets, Pension and post-retirement | 11,700 | 14,889 |
Assets, Share-based compensation | 6,627 | 5,721 |
Assets, Income tax credits, capital losses, and net operating losses | 10,790 | 14,462 |
Assets, Restructuring costs | 1,288 | 5,442 |
Assets, Other | 921 | 1,026 |
Total Deferred | 63,223 | 66,182 |
Valuation Allowance | (5,035) | (9,189) |
Net Deferred, Assets | 58,188 | 56,993 |
Liabilities, Depreciation and amortization | 20,643 | 24,362 |
Liabilities, Intangibles arising from acquisitions | 22,600 | 25,034 |
Liabilities, Inventory reserves and adjustments | 17,900 | 16,086 |
Total Deferred | 61,143 | 65,482 |
Net Deferred, Liabilities | $ 61,143 | $ 65,482 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Line Items] | |||
Net operating losses carry forward expiration date | Dec. 31, 2033 | ||
Unrecognized tax benefits that would impact effective tax rate | $ 2,600,000 | $ 2,200,000 | $ 2,100,000 |
Gross amount of interest and penalties | 300,000 | 100,000 | $ 0 |
Accrued for potential payment of interest and penalties | 900,000 | $ 600,000 | |
Minimum [Member] | |||
Income Taxes [Line Items] | |||
Gross unrecognized tax benefit change in next 12 months | 0 | ||
Maximum [Member] | |||
Income Taxes [Line Items] | |||
Gross unrecognized tax benefit change in next 12 months | 1,300,000 | ||
State and Local Jurisdiction [Member] | |||
Income Taxes [Line Items] | |||
Tax credit carryforwards | $ 10,800,000 | ||
Tax credit carryforwards, expiration year | 2,021 | ||
State tax credits carry forward expiration date | Dec. 31, 2021 | ||
Net operating loss carryforwards | $ 600,000 | ||
Net operating loss carryforwards, expiration year | 2,033 | ||
Federal [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | $ 5,800,000 | ||
Net operating loss carryforwards, expiration year | 2,034 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Beginning Balance, January 1 | $ 3,350 | $ 3,205 | $ 3,108 |
Additions based on tax positions taken during a prior period | 713 | 1 | 123 |
Reductions based on tax positions taken during a prior period | (32) | (14) | (11) |
Additions based on tax positions taken during the current period | 103 | 425 | 382 |
Reductions related to settlement of tax matters | (52) | (46) | (70) |
Reductions related to lapses of applicable statutes of limitation | (252) | (221) | (327) |
Ending Balance, December 31 | $ 3,830 | $ 3,350 | $ 3,205 |
Other Assets and Liabilities -
Other Assets and Liabilities - Schedule of Other Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Other Long-Term Assets: | ||
Investment in deferred compensation | $ 4,776 | $ 5,440 |
Long-term prepaid assets | 34,307 | 26,291 |
Long-term income tax asset | 3,423 | 3,412 |
Other | 2,703 | 2,205 |
Total other long-term assets | 45,209 | 37,348 |
Other Long-Term Liabilities: | ||
Accrued pension obligation | 40,165 | 48,412 |
Deferred rent | 22,561 | 18,948 |
Deferred directors compensation | 4,786 | 5,453 |
Long-term swap liability | 205 | 469 |
Long-term income tax liability | 3,999 | 3,832 |
Long-term merger expenses | 1,812 | 12,965 |
Long-term workers compensation liability | 9,517 | 8,039 |
Other | 1,602 | 3,370 |
Total other long-term liabilities | $ 84,647 | $ 101,488 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Instruments Measured at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap | $ 205 | $ 469 |
Foreign Exchange [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign exchange hedge | 91 | |
Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap | 205 | 469 |
Significant Other Observable Inputs Level 2 [Member] | Foreign Exchange [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign exchange hedge | 91 | |
Significant Other Observable Inputs Level 2 [Member] | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap | $ 205 | $ 469 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Receivables sold to Investors | $ 500,300,000 | $ 448,600,000 |
Assets measured at fair value on a nonrecurring basis | 0 | |
Liabilities measured at fair value on a nonrecurring basis | $ 0 |
Legal Matters - Additional Info
Legal Matters - Additional Information (Detail) | Jan. 14, 2016Lawsuit | May 01, 2015Lawsuit | Dec. 31, 2016USD ($)Lawsuit |
Commitments And Contingencies [Line Items] | |||
Number of lawsuits filed | Lawsuit | 2 | ||
Pre-tax reserve recorded within warehousing, marketing and administrative expenses | $ | $ 4,000,000 | ||
Inadvertent Violation under TCPA for Unsolicited Fax Advertisement [Member] | |||
Commitments And Contingencies [Line Items] | |||
Damages sought by plaintiff per violation | $ | 500 | ||
Willful Violation under TCPA for Unsolicited Fax Advertisement [Member] | |||
Commitments And Contingencies [Line Items] | |||
Damages sought by plaintiff per violation | $ | $ 1,500 | ||
United States District Court California [Member] | |||
Commitments And Contingencies [Line Items] | |||
Number of lawsuits filed | Lawsuit | 1 | ||
United States District Court Illinois [Member] | |||
Commitments And Contingencies [Line Items] | |||
Number of lawsuits filed | Lawsuit | 1 |
Selected Quarterly Financial100
Selected Quarterly Financial Data-Unaudited - Schedule of Selected Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | [1] | |||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Net sales | $ 1,254,699 | $ 1,407,504 | $ 1,354,523 | $ 1,352,296 | $ 1,297,327 | $ 1,391,545 | $ 1,341,799 | $ 1,332,375 | $ 5,369,022 | $ 5,363,046 | $ 5,327,205 | |||
Gross profit | 165,102 | 198,854 | 195,823 | 200,082 | 200,838 | 225,143 | 210,119 | 200,395 | 759,861 | 836,495 | 802,529 | |||
Net income (loss) | $ (2,353) | $ 36,742 | $ 12,933 | $ 16,530 | $ (95,836) | $ 27,667 | $ 29,834 | $ (6,007) | $ 63,852 | [1] | $ (44,342) | [1] | $ 112,115 | |
Net income (loss) per share - basic | $ (0.06) | $ 1 | $ 0.35 | $ 0.45 | $ (2.61) | $ 0.74 | $ 0.79 | $ (0.16) | $ 1.75 | $ (1.18) | $ 2.90 | |||
Net income (loss) per share - diluted | $ (0.06) | $ 0.99 | $ 0.35 | $ 0.45 | $ (2.61) | $ 0.74 | $ 0.78 | $ (0.16) | $ 1.73 | $ (1.18) | $ 2.87 | |||
[1] | Revised in 2015 for the impact of the changes in accounting principle related to inventory accounting. |
Selected Quarterly Financial101
Selected Quarterly Financial Data-Unaudited - Schedule of Selected Quarterly Financial Data (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Gain on sale of City of Industry facility | $ (1,651) | $ (17,752) | $ (19,403) | |||||||
Settlement charge related to the defined benefit plan | 216 | 261 | $ 7,328 | 7,805 | ||||||
Litigation reserve | 2,492 | 2,492 | ||||||||
Severance costs for operating leadership | 776 | 776 | ||||||||
State income tax reserve adjustment | $ 417 | 417 | ||||||||
Restructuring charges | (754) | $ 155 | $ 7,489 | $ 124 | $ (86) | $ 3,989 | (599) | $ 11,516 | ||
Tax impact of a dividend from a foreign subsidiary | $ 1,666 | $ 1,666 | ||||||||
Impairment of Industrial goodwill and intangible assets | 118,076 | 118,076 | ||||||||
Loss on disposition of business and related costs | 2,918 | 710 | 13,420 | 17,048 | ||||||
Impairment of assets and accelerated amortization related to rebranding | $ 307 | 317 | $ 318 | $ 6,487 | 7,429 | |||||
Impairment of seller notes | $ 6,658 | $ 6,658 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts (Detail) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 17,810 | $ 19,725 | $ 20,608 |
Additions Charged to Costs and Expenses | 5,208 | 3,231 | 4,898 |
Deductions | (4,822) | (5,146) | (5,781) |
Balance at End of Period | $ 18,196 | $ 17,810 | $ 19,725 |