Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2020shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Transition Report | false |
Document Period End Date | Mar. 31, 2020 |
Entity File Number | 1-1361 |
Entity Registrant Name | TOOTSIE ROLL INDUSTRIES INC |
Entity Incorporation, State or Country Code | VA |
Entity Tax Identification Number | 22-1318955 |
Entity Address, Address Line One | 7401 South Cicero Avenue |
Entity Address, City or Town | Chicago |
Entity Address, State or Province | IL |
Entity Address, Postal Zip Code | 60629 |
City Area Code | 773 |
Local Phone Number | 838-3400 |
Title of 12(b) Security | Common Stock, par value $0.69-4/9 per share |
Trading Symbol | TR |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Central Index Key | 0000098677 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Common Stock | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 39,769,401 |
Class B Common Stock | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 27,037,401 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 139,067 | $ 138,960 | $ 77,670 |
Restricted cash | 373 | 380 | 380 |
Investments | 77,510 | 100,444 | 81,986 |
Accounts receivable trade, less allowances of $1,887, $1,949 and $1,696 | 36,006 | 45,044 | 43,868 |
Other receivables | 3,446 | 3,418 | 3,282 |
Inventories: | |||
Finished goods and work-in-process | 46,683 | 35,909 | 40,004 |
Raw materials and supplies | 24,974 | 23,179 | 25,675 |
Prepaid expenses | 6,231 | 5,996 | 7,111 |
Total current assets | 334,290 | 353,330 | 279,976 |
PROPERTY, PLANT AND EQUIPMENT, at cost: | |||
Land | 21,627 | 21,740 | 21,727 |
Buildings | 122,598 | 122,843 | 121,788 |
Machinery and equipment | 414,526 | 416,625 | 401,375 |
Construction in progress | 7,669 | 4,427 | 7,349 |
Operating lease right-of-use assets | 1,388 | 1,580 | 1,370 |
Property, plant and equipment, gross | 567,808 | 567,215 | 553,609 |
Less - accumulated depreciation | 381,850 | 378,760 | 366,601 |
Net property, plant and equipment | 185,958 | 188,455 | 187,008 |
OTHER ASSETS: | |||
Goodwill | 73,237 | 73,237 | 73,237 |
Trademarks | 175,024 | 175,024 | 175,024 |
Investments | 153,287 | 153,031 | 187,218 |
Split dollar officer life insurance | 26,042 | 26,042 | 26,042 |
Prepaid expenses and other assets | 7,555 | 8,056 | 11,469 |
Deferred income taxes | 534 | 689 | 530 |
Total other assets | 435,679 | 436,079 | 473,520 |
Total assets | 955,927 | 977,864 | 940,504 |
CURRENT LIABILITIES: | |||
Accounts payable | 15,991 | 12,720 | 13,520 |
Bank loans | 781 | 747 | 755 |
Dividends payable | 160 | 5,861 | 176 |
Accrued liabilities | 38,424 | 41,611 | 37,302 |
Postretirement health care benefits | 598 | 598 | 580 |
Operating lease liabilities | 1,063 | 1,062 | 716 |
Deferred compensation | 16,751 | 16,945 | |
Income taxes payable | 3,418 | ||
Total current liabilities | 77,186 | 79,544 | 53,049 |
NONCURRENT LIABILITIES: | |||
Deferred income taxes | 45,755 | 47,295 | 44,553 |
Postretirement health care benefits | 13,206 | 13,145 | 11,954 |
Industrial development bonds | 7,500 | 7,500 | 7,500 |
Liability for uncertain tax positions | 3,697 | 4,240 | 3,901 |
Operating lease liabilities | 325 | 518 | 654 |
Deferred compensation and other liabilities | 56,737 | 65,973 | 74,233 |
Total noncurrent liabilities | 127,220 | 138,671 | 142,795 |
TOOTSIE ROLL INDUSTRIES, INC. SHAREHOLDERS' EQUITY: | |||
Capital in excess of par value | 729,673 | 696,059 | 719,212 |
Retained earnings | 3,197 | 40,809 | 2,459 |
Accumulated other comprehensive loss | (25,539) | (20,245) | (20,518) |
Treasury stock (at cost) - 93, 90 and 90 shares, respectively | (1,992) | (1,992) | (1,992) |
Total Tootsie Roll Industries, Inc. shareholders' equity | 751,732 | 759,854 | 744,828 |
Noncontrolling interests | (211) | (205) | (168) |
Total equity | 751,521 | 759,649 | 744,660 |
Total liabilities and shareholders' equity | 955,927 | 977,864 | 940,504 |
Common Stock | |||
TOOTSIE ROLL INDUSTRIES, INC. SHAREHOLDERS' EQUITY: | |||
Common stock, $.69-4/9 par value - 120,000 shares authorized; 39,769, 38,836 and 39,418, respectively, issued. Class B common stock, $.69-4/9 par value - 40,000 shares authorized; 27,037, 26,287 and 26,342, respectively, issued | 27,617 | 26,969 | 27,374 |
Class B Common Stock | |||
TOOTSIE ROLL INDUSTRIES, INC. SHAREHOLDERS' EQUITY: | |||
Common stock, $.69-4/9 par value - 120,000 shares authorized; 39,769, 38,836 and 39,418, respectively, issued. Class B common stock, $.69-4/9 par value - 40,000 shares authorized; 27,037, 26,287 and 26,342, respectively, issued | $ 18,776 | $ 18,254 | $ 18,293 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Trade accounts receivable, allowances | $ 1,887 | $ 1,949 | $ 1,696 |
Treasury stock, shares | 93,000 | 90,000 | 90,000 |
Common Stock | |||
Common stock, par value (in dollars per share) | $ 0.6944 | $ 0.6944 | $ 0.6944 |
Common stock, shares authorized | 120,000,000 | 120,000,000 | 120,000,000 |
Common stock, shares issued | 39,769,000 | 38,836,000 | 39,418,000 |
Class B Common Stock | |||
Common stock, par value (in dollars per share) | $ 0.6944 | $ 0.6944 | $ 0.6944 |
Common stock, shares authorized | 40,000,000 | 40,000,000 | 40,000,000 |
Common stock, shares issued | 27,037,000 | 26,287,000 | 26,342,000 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Revenue | $ 103,761 | $ 101,977 | |
Costs | 66,745 | 65,111 | |
Gross Margin | 37,016 | 36,866 | |
Selling, marketing and administrative expenses | 16,272 | 31,108 | |
Earnings from operations | 20,744 | 5,758 | |
Other income (loss), net | (5,494) | 6,017 | |
Earnings before income taxes | 15,250 | 11,775 | |
Provision for income taxes | 3,274 | 2,864 | |
Net earnings | 11,976 | 8,911 | |
Less: net earnings (loss) attributable to noncontrolling interests | (6) | (44) | |
Net earnings attributable to Tootsie Roll Industries, Inc. | $ 11,982 | $ 8,955 | |
Net earnings attributable to Tootsie Roll Industries, Inc. per share (in dollars per share) | $ 0.18 | $ 0.13 | |
Average number of shares outstanding (in shares) | 66,875 | 67,814 | |
Retained earnings at beginning of period | $ 40,809 | $ 33,767 | |
Net earnings attributable to Tootsie Roll Industries, Inc. | $ 11,982 | $ 8,955 | |
Dividends per share (in dollars per share) | [1] | $ 0.09 | $ 0.09 |
Cash dividends | $ (5,841) | $ (5,757) | |
Stock dividends | (43,753) | (34,506) | |
Retained earnings at end of period | 3,197 | 2,459 | |
Product | |||
Revenue | 102,803 | 101,019 | |
Costs | 66,443 | 64,856 | |
Gross Margin | 36,360 | 36,163 | |
Rental and Royalty | |||
Revenue | 958 | 958 | |
Costs | 302 | 255 | |
Gross Margin | $ 656 | $ 703 | |
[1] | Does not include 3% stock dividend to shareholders of record on 3/3/20 and 3/5/19. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS (Parenthetical) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS | ||
Stock dividends (as a percent) | 3.00% | 3.00% |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS | ||
Net earnings | $ 11,976 | $ 8,911 |
Other comprehensive income (loss), before tax: | ||
Foreign currency translation adjustments | (3,674) | 391 |
Pension and postretirement reclassification adjustments: | ||
Less: reclassification adjustment for (gains) losses to net earnings | (338) | (381) |
Unrealized gains (losses) on postretirement and pension benefits | (338) | (381) |
Investments: | ||
Unrealized gains (losses) for the period on investments | (1,091) | 1,467 |
Unrealized gains (losses) on investments | (1,091) | 1,467 |
Derivatives: | ||
Unrealized gains (losses) for the period on derivatives | (961) | 550 |
Less: reclassification adjustment for (gains) losses to net earnings | 253 | 96 |
Unrealized gains (losses) on derivatives | (708) | 646 |
Total other comprehensive income (loss), before tax | (5,811) | 2,123 |
Income tax benefit (expense) related to items of other comprehensive income | 517 | (419) |
Total comprehensive earnings | 6,682 | 10,615 |
Comprehensive earnings (loss) attributable to noncontrolling interests | (6) | (44) |
Total comprehensive earnings attributable to Tootsie Roll Industries, Inc. | $ 6,688 | $ 10,659 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings | $ 11,976 | $ 8,911 |
Adjustments to reconcile net earnings to net cash used in operating activities: | ||
Depreciation | 4,647 | 4,666 |
Deferred income taxes | (1,013) | 149 |
Amortization of marketable security premiums | 217 | 353 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 8,205 | 5,927 |
Other receivables | (197) | (267) |
Inventories | (13,676) | (11,100) |
Prepaid expenses and other assets | 172 | 983 |
Accounts payable and accrued liabilities | 1,422 | (2,770) |
Income taxes payable | 2,983 | 2,930 |
Postretirement health care benefits | (276) | (150) |
Deferred compensation and other liabilities | 121 | 924 |
Net cash provided by operating activities | 14,581 | 10,556 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (3,737) | (4,683) |
Purchases of trading securities | (2,287) | (2,360) |
Sales of trading securities | 380 | 362 |
Purchase of available for sale securities | (21,312) | (20,919) |
Sale and maturity of available for sale securities | 35,217 | 5,379 |
Net cash from (used in) investing activities | 8,261 | (22,221) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Shares purchased and retired | (8,809) | (10,519) |
Dividends paid in cash | (11,703) | (11,530) |
Proceeds from bank loans | 928 | 941 |
Repayment of bank loans | (880) | (544) |
Net cash used in financing activities | (20,464) | (21,652) |
Effect of exchange rate changes on cash | (2,278) | 80 |
Increase (Decrease) in cash and cash equivalents | 100 | (33,237) |
Cash, cash equivalents and restricted cash at beginning of year | 139,340 | 111,287 |
Cash, cash equivalents and restricted cash at end of year | 139,440 | 78,050 |
Supplemental cash flow information: | ||
Income taxes paid | 794 | (20) |
Interest paid | 23 | 31 |
Stock dividend issued | $ 63,402 | $ 70,557 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Significant Accounting Policies | |
Significant Accounting Policies | Note 1 — Significant Accounting Policies General Information Foregoing data has been prepared from the unaudited financial records of Tootsie Roll Industries, Inc. (the Company) and in the opinion of Management all adjustments, which are of a normal recurring nature, necessary for a fair statement of the results for the interim period have been reflected. Certain amounts previously reported have been reclassified to conform to the current year presentation. These consolidated financial statements should be read in conjunction with the consolidated financial statements and the related notes included in the Company’s Form 10-K for the year ended December 31, 2019 (the “2019 Form 10-K”). Results of operations for the period ended March 31, 2020 are not necessarily indicative of results to be expected for the year to end December 31, 2020 because of the seasonal nature of the Company’s operations. Historically, the third quarter has been the Company’s largest sales quarter due to pre-Halloween sales. Due to the adverse effects of the Covid-19 pandemic on the overall economy, the Company has experienced a significant decline in customer orders and sales in second quarter 2020, and expects this trend to adversely affect net earnings in second quarter 2020 and may affect the third and fourth quarters in 2020 as well. The effects of Covid-19 are unprecedented, and therefore the Company is unable to ascertain the effects on its sales and net earnings for the balance of 2020. Revenue Recognition The Company’s revenues, primarily net product sales, principally result from the sale of goods, reflect the consideration to which the Company expects to be entitled generally based on customer purchase orders. The Company records revenue based on a five-step model in accordance with Accounting Standards Codification ("ASC") Topic 606 which became effective January, 1, 2018. Adjustments for estimated customer cash discounts upon payment, discounts for price adjustments, product returns, allowances, and certain advertising and promotional costs, including consumer coupons, are variable consideration and are recorded as a reduction of product sales revenue in the same period the related product sales are recorded. Such estimates are calculated using historical averages adjusted for any expected changes due to current business conditions and experience. A net product sale is recorded when the Company delivers the product to the customer, or in certain instances, the customer picks up the goods at the Company’s distribution center, and thereby obtains control of such product. Amounts billed and due from our customers are classified as accounts receivable trade on the balance sheet and require payment on a short-term basis. Accounts receivable trade are unsecured. Shipping and handling costs of $10,672 and $11,032 in first quarter 2020 and 2019, respectively, are included in selling, marketing and administrative expenses. A minor amount of royalty income (less than 0.2% of our consolidated net sales) is also recognized from sales-based licensing arrangements, pursuant to which revenue is recognized as the third-party licensee sales occur. Rental income (less than 1% of our consolidated net sales) is not considered revenue from contracts from customers. Leases The Company identifies leases by evaluating our contracts to determine if the contract conveys the right to use an identified asset for a stated period of time in exchange for consideration. The Company considers whether it can control the underlying asset and have the right to obtain substantially all of the economic benefits or outputs from the asset. Leases with terms greater than 12 months are classified as either operating or finance leases at the commencement date. For these leases, we capitalize the present value of the minimum lease payments over the lease term as a right-of-use asset with an offsetting lease liability. The discount rate used to calculate the present value of the minimum lease payments is typically our incremental borrowing rate, as the rate implicit in the lease is generally not known or determinable. The lease term includes any noncancelable period for which we have the right to use the asset. Currently, all capitalized leases are classified as operating leases and the Company records rental expense on a straight-line basis over the term of the lease. Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, (ASC Topic 326) which replaces the current incurred loss impairment method with a new method that reflects expected credit losses. Subsequent to the issuance of ASC Topic 326, the FASB clarified and amended guidance through several Accounting Standard Updates; hereinafter the collection of credit loss guidance is referred to as “ASC Topic 326”. Under this new guidance an entity would recognize an impairment allowance equal to its current estimate of credit losses on financial assets measured at amortized cost. The Company adopted ASU 2016-13 and related amendments (ASC Topic 326) on January 1, 2020. The adoption of this ASC did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements - Not Yet Adopted In December 2019, the FASB issued ASU No. 2019-12 which is designed to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. ASU No. 2019-12 is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years; this ASU allows for early adoption in any interim period after issuance of the update. The Company is currently assessing the impact this ASU will have on its consolidated financial statements. In March 2020, the FASB issued ASU 2020-04 which provides optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. We are currently evaluating our contracts and the optional expedients provided by the new standard. |
Average Shares Outstanding
Average Shares Outstanding | 3 Months Ended |
Mar. 31, 2020 | |
Average Shares Outstanding | |
Average Shares Outstanding | Note 2 — Average Shares Outstanding The average number of shares outstanding for first quarter 2020 reflects aggregate stock purchases of 260 shares for $8,809 and a 3% stock dividend of 1,942 shares distributed on April 3, 2020. The average number of shares outstanding for first quarter 2019 reflects aggregate stock purchases of 285 shares for $10,519 and a 3% stock dividend of 1,914 shares distributed on April 5, 2019. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Taxes | |
Income Taxes | Note 3 — Income Taxes The Company is subject to taxation in the U.S. and various state and foreign jurisdictions. The Company remains subject to examination by U.S. federal and state and foreign tax authorities for the years 2016 through 2018. The Company’s consolidated effective income tax rate was 21.5% and 24.3% in first quarter 2020 and 2019, respectively. The lower tax rate in first quarter 2020 principally reflects lower state income tax expense. |
Share Capital and Capital In Ex
Share Capital and Capital In Excess of Par Value | 3 Months Ended |
Mar. 31, 2020 | |
Share Capital and Capital In Excess of Par Value | |
Share Capital and Capital In Excess of Par Value | NOTE 4—Share Capital and Capital In Excess of Par Value: Capital in Class B Excess Common Stock Common Stock Treasury Stock of Par Shares Amount Shares Amount Shares Amount Value (000’s) (000’s) (000’s) Balance at December 31, 2019 38,836 $ 26,969 26,287 $ 18,254 90 $ (1,992) $ 696,059 Issuance of 3% stock dividend 1,157 803 786 547 3 — 42,243 Conversion of Class B common shares to common shares 36 25 (36) (25) — — — Purchase and retirement of common shares and other (260) (180) — — — — (8,629) Balance at March 31, 2020 39,769 $ 27,617 27,037 $ 18,776 93 $ (1,992) $ 729,673 Balance at December 31, 2018 38,544 $ 26,767 25,584 $ 17,767 88 $ (1,992) $ 696,535 Issuance of 3% stock dividend 1,150 798 767 532 2 — 32,999 Conversion of Class B common shares to common shares 9 6 (9) (6) — — — Purchase and retirement of common shares and other (285) (197) — — — — (10,322) Balance at March 31, 2019 39,418 $ 27,374 26,342 $ 18,293 90 $ (1,992) $ 719,212 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Measurements | |
Fair Value Measurements | Note 5 — Fair Value Measurements Current accounting guidance defines fair value as the price that would be received on the sale of an asset, or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Guidance requires disclosure of the extent to which fair value is used to measure financial assets and liabilities, the inputs utilized in calculating valuation measurements, and the effect of the measurement of significant unobservable inputs on earnings, or changes in net assets, as of the measurement date. Guidance establishes a three-level valuation hierarchy based upon the transparency of inputs utilized in the measurement and valuation of financial assets or liabilities as of the measurement date. Level 1 inputs include quoted prices for identical instruments and are the most observable. Level 2 inputs include quoted prices for similar assets and observable inputs such as interest rates, foreign currency exchange rates, commodity rates and yield curves. Level 3 inputs are not observable in the market and include Management’s own judgments about the assumptions market participants would use in pricing the asset or liability. The use of observable and unobservable inputs are reflected in the hierarchy assessment disclosed in the table below. As of March 31, 2020, December 31, 2019 and March 31, 2019, the Company held certain financial assets that are required to be measured at fair value on a recurring basis. These included derivative hedging instruments related to the purchase of certain raw materials and foreign currencies, investments in trading securities and available for sale securities. The Company’s available for sale securities principally consist of corporate bonds. The following table presents information about the Company’s financial assets and liabilities measured at fair value as of March 31, 2020, December 31, 2019 and March 31, 2019 and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value: Estimated Fair Value March 31, 2020 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 139,067 $ 139,067 $ - $ - Available for sale securities 162,080 3,441 158,639 - Foreign currency forward contracts (93) - (93) - Commodity futures contracts (480) (480) - - Trading securities 68,717 41,692 27,025 - Total assets measured at fair value $ 369,291 $ 183,720 $ 185,571 $ - Estimated Fair Value December 31, 2019 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 138,960 $ 138,960 $ - $ - Available for sale securities 177,292 3,588 173,704 - Foreign currency forward contracts 14 - 14 - Commodity futures contracts, net 121 121 - - Trading securities 76,183 48,260 27,923 - Total assets measured at fair value $ 392,570 $ 190,929 $ 201,641 $ - Estimated Fair Value March 31, 2019 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 77,670 $ 77,670 $ - $ - Available for sale securities 199,944 3,041 196,903 - Foreign currency forward contracts (197) - (197) - Commodity futures contracts (151) (151) - - Trading securities 69,260 42,866 26,394 - Total assets measured at fair value $ 346,526 $ 123,426 $ 223,100 $ - The fair value of the Company’s industrial revenue development bonds at March 31, 2020, December 31, 2019 and March 31, 2019 were valued using Level 2 inputs which approximates the carrying value of $7,500 for the respective periods. Interest rates on these bonds are reset weekly based on current market conditions. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities | |
Derivative Instruments and Hedging Activities | Note 6 — Derivative Instruments and Hedging Activities From time to time, the Company uses derivative instruments, including foreign currency forward contracts and commodity futures contracts to manage its exposures to foreign exchange and commodity prices. Commodity futures contracts are intended and effective as hedges of market price risks associated with the anticipated purchase of certain raw materials (primarily sugar). Foreign currency forward contracts are intended and effective as hedges of the Company’s exposure to the variability of cash flows, primarily related to the foreign exchange rate changes of products manufactured in Canada and sold in the United States, and periodic equipment purchases from foreign suppliers denominated in a foreign currency. The Company does not engage in trading or other speculative use of derivative instruments The Company recognizes all derivative instruments as either assets or liabilities at fair value in the Condensed Consolidated Statement of Financial Position. Derivative assets are recorded in other receivables and derivative liabilities are recorded in accrued liabilities. The Company uses hedge accounting for its foreign currency and commodity derivative instruments as discussed above. Derivatives that qualify for hedge accounting are designated as cash flow hedges by formally documenting the hedge relationships, including identification of the hedging instruments, the hedged items and other critical terms, as well as the Company’s risk management objectives and strategies for undertaking the hedge transaction. Changes in the fair value of the Company’s cash flow hedges are recorded in accumulated other comprehensive loss, net of tax, and are reclassified to earnings in the periods in which earnings are affected by the hedged item. Substantially all amounts reported in accumulated other comprehensive loss for commodity derivatives are expected to be reclassified to cost of goods sold. Approximately $331 and $149 of this accumulated comprehensive loss is expected to be reclassified as a charge to earnings in 2020 and 2021, respectively. Approximately $(175), $47 and $35 reported in accumulated other comprehensive gain (loss) for foreign currency derivatives are expected to be reclassified to other income, net in 2020, 2021 and 2022, respectively. The following table summarizes the Company’s outstanding derivative contracts and their effects on its Condensed Consolidated Statements of Financial Position at March 31, 2020, December 31, 2019 and March 31, 2019: March 31, 2020 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency forward contracts $ 11,342 $ 117 $ (210) Commodity futures contracts 3,955 1 (481) Total derivatives $ 118 $ (691) December 31, 2019 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency forward contracts $ 5,533 $ 14 $ — Commodity futures contracts 7,147 205 (84) Total derivatives $ 219 $ (84) March 31, 2019 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency forward contracts $ 11,050 $ - $ (197) Commodity futures contracts 7,158 213 (364) Total derivatives $ 213 $ (561) The effects of derivative instruments on the Company’s Condensed Consolidated Statements of Earnings and Retained Earnings and the Condensed Consolidated Statements of Comprehensive Earnings for periods ended March 31, 2020 and March 31, 2019 are as follows: For Quarter Ended March 31, 2020 Gain (Loss) Gain (Loss) on Amount Excluded Gain (Loss) Reclassified from from Effectiveness Recognized Accumulated OCI Testing Recognized in OCI into Earnings in Earnings Foreign currency forward contracts $ (205) $ (98) $ - Commodity futures contracts (756) (155) - Total $ (961) $ (253) $ - For Quarter Ended March 31, 2019 Gain (Loss) Gain (Loss) on Amount Excluded Gain (Loss) Reclassified from from Effectiveness Recognized Accumulated OCI Testing Recognized in OCI into Earnings in Earnings Foreign currency forward contracts $ 210 $ - $ - Commodity futures contracts 340 (96) - Total $ 550 $ (96) $ - |
Pension Plans
Pension Plans | 3 Months Ended |
Mar. 31, 2020 | |
Pension Plans | |
Pension Plans | Note 7 — Pension Plans Beginning in 2012, the Company received periodic notices from the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union Pension Plan (Plan), a multi-employer defined benefit pension plan for certain Company union employees, that the Plan’s actuary certified the Plan to be in “critical status”, the “Red Zone”, as defined by the Pension Protection Act (PPA) and the Pension Benefit Guaranty Corporation (PBGC); and that a plan of rehabilitation was adopted by the trustees of the Plan in 2012. During 2015, the Company received new notices that the Plan was reclassified to “critical and declining status”, as defined by the PPA and PBGC, for the plan year beginning January 1, 2015. A designation of “critical and declining status” implies that the Plan is expected to become insolvent in the next 20 years . In 2016, the Company received new notices that the Plan’s trustees adopted an updated Rehabilitation Plan effective January 1, 2016, and all annual notices through 2020 have continued to classify the Plan in the “critical and declining status” category. The Company has been advised that its withdrawal liability would have been $99,800, $81,600 and $82,200 if it had withdrawn from the Plan during 2019, 2018 and 2017, respectively. Should the Company actually withdraw from the Plan at a future date, a withdrawal liability, which could be higher than the above discussed amounts, could be payable to the Plan. The amended rehabilitation plan requires that employer contributions include 5% compounded annual surcharge increases each year for an unspecified period of time beginning January 2013 (in addition to the 5% interim surcharge initiated in June 2012) as well as certain plan benefit reductions. The Company’s pension expense for this Plan for first quarter 2020 and 2019 was $685 and $574, respectively ($2,961 and $2,836 for twelve months 2019 and 2018, respectively). The aforementioned expense includes surcharges of $241 and $184 for first quarter 2020 and 2019, respectively ($948 and $811 for twelve months 2019 and 2018, respectively), as required under the amended plan of rehabilitation. The Company is currently unable to determine the ultimate outcome of the above discussed matter and therefore is unable to determine the effects on its consolidated financial statements, but the ultimate outcome or the effects of any modifications to the current amended rehabilitation plan could be material to its consolidated results of operations or cash flows in one or more future periods. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Earnings (Loss) | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Earnings (Loss) | |
Accumulated Other Comprehensive Earnings (Loss) | Note 8 — Accumulated Other Comprehensive Earnings (Loss) Accumulated Other Comprehensive Earnings (Loss) consists of the following components: Accumulated Foreign Foreign Postretirement Other Currency Currency Commodity and Pension Comprehensive Translation Investments Derivatives Derivatives Benefits Earnings (Loss) Balance at December 31, 2019 $ (23,368) $ 882 $ 10 $ 92 $ 2,139 $ (20,245) Other comprehensive earnings (loss) before reclassifications (3,674) (827) (155) (574) - (5,230) Reclassifications from accumulated other comprehensive loss - - 74 118 (256) (64) Other comprehensive earnings (loss) net of tax (3,674) (827) (81) (456) (256) (5,294) Balance at March 31, 2020 $ (27,042) $ 55 $ (71) $ (364) $ 1,883 $ (25,539) Balance at December 31, 2018 $ (24,159) $ (1,516) $ (309) $ (444) $ 4,206 $ (22,222) Other comprehensive earnings (loss) before reclassifications 391 1,112 159 258 - 1,920 Reclassifications from accumulated other comprehensive loss - - - 72 (288) (216) Other comprehensive earnings (loss) net of tax 391 1,112 159 330 (288) 1,704 Balance at March 31, 2019 $ (23,768) $ (404) $ (150) $ (114) $ 3,918 $ (20,518) The amounts reclassified from accumulated other comprehensive income (loss) consisted of the following: Details about Accumulated Other Quarter Ended Location of (Gain) Loss Comprehensive Income Components March 31, 2020 March 31, 2019 Recognized in Earnings Foreign currency derivatives $ 98 $ - Other income, net Commodity derivatives 155 96 Product cost of goods sold Postretirement and pension benefits (338) (381) Other income, net Total before tax (85) (285) Tax (expense) benefit 21 69 Net of tax $ (64) $ (216) |
Restricted Cash
Restricted Cash | 3 Months Ended |
Mar. 31, 2020 | |
Restricted Cash | |
Restricted Cash | Note 9 — Restricted Cash Restricted cash comprises certain cash deposits of the Company’s Spanish subsidiary with international banks that are pledged as collateral for letters of credit and bank borrowings. |
Bank Loans
Bank Loans | 3 Months Ended |
Mar. 31, 2020 | |
Bank Loans | |
Bank Loans | Note 10 — Bank Loans Bank loans consist of short term (less than 120 days ) borrowings by the Company’s Spanish subsidiary that are held by international banks. The weighted-average interest rate as of March 31, 2020 and 2019 was 3.0% and 1.9% , respectively. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases | |
Leases | Note 11 — Leases The Company leases certain buildings, land and equipment that are classified as operating leases. These leases have remaining lease terms of up to approximately 3 years . In the first quarter of 2020 and 2019 , operating lease cost and cash paid for operating lease liabilities totaled $236 and $167 , respectively, which is classified in cash flows from operating activities. As of March 31, 2020 and March 31 2019 , operating lease right-of-use assets and operating lease liabilities were both $1,388 and $1,370 , respectively. The weighted-average remaining lease term related to these operating leases was 1.6 years and 2.1 years as of March 31, 2020 and March 31, 2019, respectively. The weighted-average discount rate related to the Company’s operating leases was 3.1% as of March 31, 2020 and 2019. Maturities of our operating lease liabilities at March 31, 2020 are as follows: $632 in 2020, $695 in 2021, $61 in 2022. The Company, as lessor, rents certain commercial real estate to third party lessees. The cost and accumulated depreciation related to these leased properties were $36,368 and $10,433 , respectively, as of March 31, 2020 and were $36,371 and $9,709 , respectively, as of March 31, 2019. Terms of such leases, including renewal options, may be extended for up to sixty years , many of which provide for periodic adjustment of rent payments based on changes in consumer or other price indices. The Company recognizes lease income on a straight-line basis over the lease term. Lease income in first quarter 2020 and 2019 was $737 and $749 , respectively, and is classified in cash flows from operating activities. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Contingencies | |
Contingencies | Note 12 — Contingencies In the ordinary course of business, the Company is, from time to time, subject to a variety of active or threatened legal proceedings and claims. While it is not possible to predict the outcome of such matters with certainty, in the Company’s opinion, both individually and in the aggregate, they are not expected to have a material effect on the Company’s financial condition, results of operations or cash flows. |
Share Capital and Capital In _2
Share Capital and Capital In Excess of Par Value (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share Capital and Capital In Excess of Par Value | |
Schedule of changes in share capital and capital in excess of par value | Capital in Class B Excess Common Stock Common Stock Treasury Stock of Par Shares Amount Shares Amount Shares Amount Value (000’s) (000’s) (000’s) Balance at December 31, 2019 38,836 $ 26,969 26,287 $ 18,254 90 $ (1,992) $ 696,059 Issuance of 3% stock dividend 1,157 803 786 547 3 — 42,243 Conversion of Class B common shares to common shares 36 25 (36) (25) — — — Purchase and retirement of common shares and other (260) (180) — — — — (8,629) Balance at March 31, 2020 39,769 $ 27,617 27,037 $ 18,776 93 $ (1,992) $ 729,673 Balance at December 31, 2018 38,544 $ 26,767 25,584 $ 17,767 88 $ (1,992) $ 696,535 Issuance of 3% stock dividend 1,150 798 767 532 2 — 32,999 Conversion of Class B common shares to common shares 9 6 (9) (6) — — — Purchase and retirement of common shares and other (285) (197) — — — — (10,322) Balance at March 31, 2019 39,418 $ 27,374 26,342 $ 18,293 90 $ (1,992) $ 719,212 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Measurements | |
Schedule of financial assets and liabilities measured at fair value | Estimated Fair Value March 31, 2020 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 139,067 $ 139,067 $ - $ - Available for sale securities 162,080 3,441 158,639 - Foreign currency forward contracts (93) - (93) - Commodity futures contracts (480) (480) - - Trading securities 68,717 41,692 27,025 - Total assets measured at fair value $ 369,291 $ 183,720 $ 185,571 $ - Estimated Fair Value December 31, 2019 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 138,960 $ 138,960 $ - $ - Available for sale securities 177,292 3,588 173,704 - Foreign currency forward contracts 14 - 14 - Commodity futures contracts, net 121 121 - - Trading securities 76,183 48,260 27,923 - Total assets measured at fair value $ 392,570 $ 190,929 $ 201,641 $ - Estimated Fair Value March 31, 2019 Total Input Levels Used Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 77,670 $ 77,670 $ - $ - Available for sale securities 199,944 3,041 196,903 - Foreign currency forward contracts (197) - (197) - Commodity futures contracts (151) (151) - - Trading securities 69,260 42,866 26,394 - Total assets measured at fair value $ 346,526 $ 123,426 $ 223,100 $ - |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities | |
Summary of the Company's outstanding derivative contracts and their effects on the Consolidated Statements of Financial Position | March 31, 2020 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency forward contracts $ 11,342 $ 117 $ (210) Commodity futures contracts 3,955 1 (481) Total derivatives $ 118 $ (691) December 31, 2019 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency forward contracts $ 5,533 $ 14 $ — Commodity futures contracts 7,147 205 (84) Total derivatives $ 219 $ (84) March 31, 2019 Notional Amounts Assets Liabilities Derivatives designated as hedging instruments: Foreign currency forward contracts $ 11,050 $ - $ (197) Commodity futures contracts 7,158 213 (364) Total derivatives $ 213 $ (561) |
Effects of derivative instruments on the Consolidated Statement of Earnings and Retained Earnings, and the Condensed Consolidated Statement of Comprehensive Earnings | For Quarter Ended March 31, 2020 Gain (Loss) Gain (Loss) on Amount Excluded Gain (Loss) Reclassified from from Effectiveness Recognized Accumulated OCI Testing Recognized in OCI into Earnings in Earnings Foreign currency forward contracts $ (205) $ (98) $ - Commodity futures contracts (756) (155) - Total $ (961) $ (253) $ - For Quarter Ended March 31, 2019 Gain (Loss) Gain (Loss) on Amount Excluded Gain (Loss) Reclassified from from Effectiveness Recognized Accumulated OCI Testing Recognized in OCI into Earnings in Earnings Foreign currency forward contracts $ 210 $ - $ - Commodity futures contracts 340 (96) - Total $ 550 $ (96) $ - |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Earnings (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Earnings (Loss) | |
Schedule of accumulated other comprehensive earnings (loss): | Accumulated Foreign Foreign Postretirement Other Currency Currency Commodity and Pension Comprehensive Translation Investments Derivatives Derivatives Benefits Earnings (Loss) Balance at December 31, 2019 $ (23,368) $ 882 $ 10 $ 92 $ 2,139 $ (20,245) Other comprehensive earnings (loss) before reclassifications (3,674) (827) (155) (574) - (5,230) Reclassifications from accumulated other comprehensive loss - - 74 118 (256) (64) Other comprehensive earnings (loss) net of tax (3,674) (827) (81) (456) (256) (5,294) Balance at March 31, 2020 $ (27,042) $ 55 $ (71) $ (364) $ 1,883 $ (25,539) Balance at December 31, 2018 $ (24,159) $ (1,516) $ (309) $ (444) $ 4,206 $ (22,222) Other comprehensive earnings (loss) before reclassifications 391 1,112 159 258 - 1,920 Reclassifications from accumulated other comprehensive loss - - - 72 (288) (216) Other comprehensive earnings (loss) net of tax 391 1,112 159 330 (288) 1,704 Balance at March 31, 2019 $ (23,768) $ (404) $ (150) $ (114) $ 3,918 $ (20,518) |
Amount reclassified from accumulated other comprehensive income (loss) | Details about Accumulated Other Quarter Ended Location of (Gain) Loss Comprehensive Income Components March 31, 2020 March 31, 2019 Recognized in Earnings Foreign currency derivatives $ 98 $ - Other income, net Commodity derivatives 155 96 Product cost of goods sold Postretirement and pension benefits (338) (381) Other income, net Total before tax (85) (285) Tax (expense) benefit 21 69 Net of tax $ (64) $ (216) |
Significant Accounting Polici_2
Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Concentration of Risk | |||
Selling, marketing and administrative expenses | $ 16,272 | $ 31,108 | |
Cash and cash equivalents: | |||
Cash and cash equivalents | $ 139,067 | 77,670 | $ 138,960 |
Royalty | Maximum | |||
Concentration of Risk | |||
Revenues (as a percent) | 0.20% | ||
Rental | Maximum | |||
Concentration of Risk | |||
Revenues (as a percent) | 1.00% | ||
Shipping and Handling | |||
Concentration of Risk | |||
Selling, marketing and administrative expenses | $ 10,672 | $ 11,032 |
Average Shares Outstanding (Det
Average Shares Outstanding (Details) - USD ($) shares in Thousands, $ in Thousands | Apr. 03, 2020 | Apr. 05, 2019 | Mar. 31, 2020 | Mar. 31, 2019 |
Average Shares Outstanding | ||||
Stock purchases (in shares) | 260 | 285 | ||
Purchase of common shares | $ 8,809 | $ 10,519 | ||
Stock dividends (as a percent) | 3.00% | 3.00% | ||
Stock dividend shares distributed | 1,942 | 1,914 |
Income Taxes - Effective tax ra
Income Taxes - Effective tax rate - (Details) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Effective income tax rate differs from the statutory rate | ||
Effective income tax rate (as a percent) | 21.50% | 24.30% |
Share Capital and Capital In _3
Share Capital and Capital In Excess of Par Value (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in share capital and capital in excess of par value | ||||
Balance at the beginning of the period | $ 759,649 | |||
Purchase and retirement of common shares and other | $ (8,809) | $ (10,519) | ||
Purchase and retirement of common shares and other (in shares) | (260,000) | (285,000) | ||
Balance at the end of the period | $ 751,521 | $ 744,660 | ||
Treasury stock, shares | 93,000 | 90,000 | 90,000 | |
Stock dividends (as a percent) | 3.00% | 3.00% | ||
Treasury Stock | ||||
Changes in share capital and capital in excess of par value | ||||
Balance at the beginning of the period | $ (1,992) | $ (1,992) | ||
Issuance of 3% stock dividend (in shares) | 3,000 | 2,000 | ||
Balance at the end of the period | $ (1,992) | $ (1,992) | ||
Treasury stock, shares | 93,000 | 90,000 | 90,000 | 88,000 |
Capital in Excess of Par Value | ||||
Changes in share capital and capital in excess of par value | ||||
Balance at the beginning of the period | $ 696,059 | $ 696,535 | ||
Issuance of 3% stock dividend | 42,243 | 32,999 | ||
Purchase and retirement of common shares and other | (8,629) | (10,322) | ||
Balance at the end of the period | 729,673 | 719,212 | ||
Class B Common Stock | Common Stock. | ||||
Changes in share capital and capital in excess of par value | ||||
Balance at the beginning of the period | $ 18,254 | $ 17,767 | ||
Balance at the beginning of the period (in shares) | 26,287,000 | 25,584,000 | ||
Issuance of 3% stock dividend | $ 547 | $ 532 | ||
Issuance of 3% stock dividend (in shares) | 786,000 | 767,000 | ||
Conversion of Class B common shares to common shares | $ (25) | $ (6) | ||
Conversion of Class B common shares to common shares (in shares) | (36,000) | (9,000) | ||
Balance at the end of the period | $ 18,776 | $ 18,293 | ||
Balance at the end of the period (in shares) | 27,037,000 | 26,342,000 | ||
Common Stock | Common Stock. | ||||
Changes in share capital and capital in excess of par value | ||||
Balance at the beginning of the period | $ 26,969 | $ 26,767 | ||
Balance at the beginning of the period (in shares) | 38,836,000 | 38,544,000 | ||
Issuance of 3% stock dividend | $ 803 | $ 798 | ||
Issuance of 3% stock dividend (in shares) | 1,157,000 | 1,150,000 | ||
Conversion of Class B common shares to common shares | $ 25 | $ 6 | ||
Conversion of Class B common shares to common shares (in shares) | 36,000 | 9,000 | ||
Purchase and retirement of common shares and other | $ (180) | $ (197) | ||
Purchase and retirement of common shares and other (in shares) | (260,000) | (285,000) | ||
Balance at the end of the period | $ 27,617 | $ 27,374 | ||
Balance at the end of the period (in shares) | 39,769,000 | 39,418,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Fair value measurements | |||
Cash and cash equivalents | $ 139,067 | $ 138,960 | $ 77,670 |
Fair value measured on a recurring basis | |||
Fair value measurements | |||
Cash and cash equivalents | 139,067 | 138,960 | 77,670 |
Available for sale securities | 162,080 | 177,292 | 199,944 |
Trading securities | 68,717 | 76,183 | 69,260 |
Total assets measured at fair value | 369,291 | 392,570 | 346,526 |
Fair value measured on a recurring basis | Foreign currency forward contracts | |||
Fair value measurements | |||
Derivative instruments, net | (93) | 14 | (197) |
Fair value measured on a recurring basis | Commodity futures contracts | |||
Fair value measurements | |||
Derivative instruments, net | (480) | 121 | (151) |
Fair value measured on a recurring basis | Level 1 | |||
Fair value measurements | |||
Cash and cash equivalents | 139,067 | 138,960 | 77,670 |
Available for sale securities | 3,441 | 3,588 | 3,041 |
Trading securities | 41,692 | 48,260 | 42,866 |
Total assets measured at fair value | 183,720 | 190,929 | 123,426 |
Fair value measured on a recurring basis | Level 1 | Commodity futures contracts | |||
Fair value measurements | |||
Derivative instruments, net | (480) | 121 | (151) |
Fair value measured on a recurring basis | Level 2 | |||
Fair value measurements | |||
Available for sale securities | 158,639 | 173,704 | 196,903 |
Trading securities | 27,025 | 27,923 | 26,394 |
Total assets measured at fair value | 185,571 | 201,641 | 223,100 |
Fair value measured on a recurring basis | Level 2 | Foreign currency forward contracts | |||
Fair value measurements | |||
Derivative instruments, net | $ (93) | $ 14 | $ (197) |
Fair Value Measurements - Bonds
Fair Value Measurements - Bonds (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Fair value on a recurring basis | |||
Industrial revenue development bonds, carrying amount, approximates fair value | $ 7,500 | $ 7,500 | $ 7,500 |
Cost Basis | Level 2 | |||
Fair value on a recurring basis | |||
Industrial revenue development bonds, carrying amount, approximates fair value | $ 7,500 | $ 7,500 | $ 7,500 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | |
Derivatives designated as hedging instruments: | ||||||
Derivative contracts | ||||||
Assets | $ 118 | $ 219 | $ 213 | |||
Liabilities | (691) | (84) | (561) | |||
Derivatives designated as hedging instruments: | Foreign currency forward contracts | ||||||
Derivative contracts | ||||||
Notional Amounts | 11,342 | 5,533 | 11,050 | |||
Assets | 117 | 14 | ||||
Liabilities | (210) | (197) | ||||
Derivatives designated as hedging instruments: | Commodity futures contracts | ||||||
Derivative contracts | ||||||
Notional Amounts | 3,955 | 7,147 | 7,158 | |||
Assets | 1 | 205 | 213 | |||
Liabilities | $ (481) | $ (84) | $ (364) | |||
Forecast | Foreign currency forward contracts | ||||||
Derivative contracts | ||||||
Loss to be reclassified | $ 35 | $ 47 | $ (175) | |||
Forecast | Commodity futures contracts | ||||||
Derivative contracts | ||||||
Gain (loss) to be reclassified | $ (149) | $ (331) |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Effect of derivative instruments on earnings | ||
Gain (Loss) Recognized in OCI | $ (961) | $ 550 |
Reclassified from Accumulated OCI into Earnings | ||
Effect of derivative instruments on earnings | ||
Gain (Loss) Reclassified from Accumulated OCI into Earnings | (253) | (96) |
Foreign currency forward contracts | ||
Effect of derivative instruments on earnings | ||
Gain (Loss) Recognized in OCI | (205) | 210 |
Foreign currency forward contracts | Reclassified from Accumulated OCI into Earnings | ||
Effect of derivative instruments on earnings | ||
Gain (Loss) Reclassified from Accumulated OCI into Earnings | (98) | |
Commodity futures contracts | ||
Effect of derivative instruments on earnings | ||
Gain (Loss) Recognized in OCI | (756) | 340 |
Commodity futures contracts | Reclassified from Accumulated OCI into Earnings | ||
Effect of derivative instruments on earnings | ||
Gain (Loss) Reclassified from Accumulated OCI into Earnings | $ (155) | $ (96) |
Pension Plans - Multi-employer
Pension Plans - Multi-employer (Details) - Multi-employer defined benefit pension plan - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2012 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plans | ||||||
Insolvent period | 20 years | |||||
Estimated liability upon withdrawal from plan | $ 99,800 | $ 81,600 | $ 82,200 | |||
Percentage of annual compounded surcharge for rehabilitation | 5.00% | |||||
Percentage of interim surcharge | 5.00% | |||||
Pension expense | $ 685 | $ 574 | 2,961 | 2,836 | ||
Surcharges | $ 241 | $ 184 | $ 948 | $ 811 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Earnings (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated other comprehensive earnings (loss), net of tax | ||
Balance at the beginning of the period | $ 759,854 | |
Balance at the end of the period | 751,732 | $ 744,828 |
Foreign Currency Translation | ||
Accumulated other comprehensive earnings (loss), net of tax | ||
Balance at the beginning of the period | (23,368) | (24,159) |
Other comprehensive earnings (loss) before reclassifications | (3,674) | 391 |
Other comprehensive earnings (loss) net of tax | (3,674) | 391 |
Balance at the end of the period | (27,042) | (23,768) |
Investments | ||
Accumulated other comprehensive earnings (loss), net of tax | ||
Balance at the beginning of the period | 882 | (1,516) |
Other comprehensive earnings (loss) before reclassifications | (827) | 1,112 |
Other comprehensive earnings (loss) net of tax | (827) | 1,112 |
Balance at the end of the period | 55 | (404) |
Foreign Currency Derivatives | ||
Accumulated other comprehensive earnings (loss), net of tax | ||
Balance at the beginning of the period | 10 | (309) |
Other comprehensive earnings (loss) before reclassifications | (155) | 159 |
Reclassifications from accumulated other comprehensive loss | 74 | |
Other comprehensive earnings (loss) net of tax | (81) | 159 |
Balance at the end of the period | (71) | (150) |
Commodity Derivatives | ||
Accumulated other comprehensive earnings (loss), net of tax | ||
Balance at the beginning of the period | 92 | (444) |
Other comprehensive earnings (loss) before reclassifications | (574) | 258 |
Reclassifications from accumulated other comprehensive loss | 118 | 72 |
Other comprehensive earnings (loss) net of tax | (456) | 330 |
Balance at the end of the period | (364) | (114) |
Postretirement and Pension Benefits | ||
Accumulated other comprehensive earnings (loss), net of tax | ||
Balance at the beginning of the period | 2,139 | 4,206 |
Reclassifications from accumulated other comprehensive loss | (256) | (288) |
Other comprehensive earnings (loss) net of tax | (256) | (288) |
Balance at the end of the period | 1,883 | 3,918 |
Accumulated Other Comprehensive Earnings ( Loss ) | ||
Accumulated other comprehensive earnings (loss), net of tax | ||
Balance at the beginning of the period | (20,245) | (22,222) |
Other comprehensive earnings (loss) before reclassifications | (5,230) | 1,920 |
Reclassifications from accumulated other comprehensive loss | (64) | (216) |
Other comprehensive earnings (loss) net of tax | (5,294) | 1,704 |
Balance at the end of the period | $ (25,539) | $ (20,518) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Earnings (Loss) - Reclassification from AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Other income, net | $ 5,494 | $ (6,017) |
Cost of goods sold | 66,745 | 65,111 |
Total before tax | (15,250) | (11,775) |
Tax expense (benefit) | 3,274 | 2,864 |
Net of tax | (11,976) | (8,911) |
Reclassified from Accumulated OCI into Earnings | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Total before tax | (85) | (285) |
Tax expense (benefit) | 21 | 69 |
Net of tax | (64) | (216) |
Foreign Currency Derivatives | Reclassified from Accumulated OCI into Earnings | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Other income, net | 98 | |
Commodity Derivatives | Reclassified from Accumulated OCI into Earnings | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Cost of goods sold | $ 155 | $ 96 |
Type of Cost, Good or Service [Extensible List] | Product [Member] | Product [Member] |
Postretirement and Pension Benefits | Reclassified from Accumulated OCI into Earnings | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Other income, net | $ (338) | $ (381) |
Bank Loans (Details)
Bank Loans (Details) - Spanish Companies | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Bank Loans | ||
Weighted interest rate (as a percent) | 3.00% | 1.90% |
Maximum | ||
Bank Loans | ||
Maturity period | 120 days |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease cost | $ 236 | $ 167 | |
Operating lease payments | 236 | 167 | |
Operating lease right-of-use assets | 1,388 | 1,370 | $ 1,580 |
Operating lease liabilities | $ 1,388 | $ 1,370 | |
Weighted average remaining lease term | 1 year 7 months 6 days | 2 years 1 month 6 days | |
Weighted average discount rate | 3.10% | 3.10% | |
2020 | $ 632 | ||
2021 | 695 | ||
2022 | $ 61 | ||
Lessor, Operating Lease, Existence of Option to Extend [true false] | true | ||
Property, plant and equipment, gross | $ 567,808 | $ 553,609 | $ 567,215 |
Lease income | $ 737 | 749 | |
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 3 years | ||
Commercial real estate leased to third parties | |||
Lessee, Lease, Description [Line Items] | |||
Property, plant and equipment, gross | $ 36,368 | 36,371 | |
Depreciation | $ 10,433 | $ 9,709 | |
Commercial real estate leased to third parties | Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lessor, renewal term | 60 years |