XML 19 R7.htm IDEA: XBRL DOCUMENT v3.7.0.1
Basis of Presentation
3 Months Ended
Apr. 01, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation

1. BASIS OF PRESENTATION

Overview. As used in these notes to the Condensed Consolidated Financial Statements, unless otherwise noted or the context otherwise requires, (1) references to the “Company,” “we,” “our,” or “us” are to AdvancePierre Foods Holdings, Inc. and its consolidated subsidiaries, and (2) references to “AdvancePierre” are to AdvancePierre Foods Holdings, Inc. exclusive of its subsidiaries.

We operate on a 52-week or 53-week fiscal year ending on the Saturday closest to December 31. References to “Fiscal 2016” are to the 52-week period ended December 31, 2016 and “Fiscal 2017” are to the 52-week period ending December 30, 2017. The fiscal quarter ended April 1, 2017 (“1st Quarter 2017”) and the fiscal quarter ended April 2, 2016 (“1st Quarter 2016”) each consists of 13 weeks.

The accompanying Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements as of and for each of the three years ended December 31, 2016 and notes thereto that are included in our Annual Report on Form 10-K that was filed with the Securities and Exchange Commission (“SEC”) on March 9, 2017 (the “Fiscal 2016 Consolidated Financial Statements”). The Condensed Consolidated Balance Sheet as of December 31, 2016 was derived from the Fiscal 2016 Consolidated Financial Statements, but does not include all of the disclosures required by accounting principles generally accepted in the US (“GAAP”). In the opinion of management, the Condensed Consolidated Financial Statements included herein contain all required adjustments, consisting of normal recurring adjustments, necessary to state fairly the financial position, results of operations and cash flows for the interim periods presented. Quarterly results are not necessarily indicative of the results for the entire year.

Description of Business. We are a leading national producer and distributor of value-added, convenient, ready-to-eat sandwiches, sandwich components and other entrées and snacks. We sell value-added products to the foodservice, retail, convenience and industrial channels, which correspond to our reportable segments. We market and distribute a broad line of products in multiple product categories including ready-to-eat sandwiches (such as breakfast sandwiches, peanut butter and jelly (“PB&J”) sandwiches and hamburgers); sandwich components (such as flame-grilled hamburgers, chicken patties and Philly steaks); and other entrées and snacks (such as country fried steak, stuffed entrées, chicken tenders and cinnamon dough bites).

Funds managed by Oaktree Capital Management, LP (“Oaktree”) control 42% of our common stock. AdvancePierre Foods, Inc. (“APF”) is a wholly-owned indirect subsidiary of the Company.

Stock Split and Public Offerings. On June 21, 2016, we effected a 49.313-for-one stock split of our common stock (without a corresponding adjustment to the par value) and, on July 20, 2016, completed an initial public offering (“IPO”) of 21,390,000 shares of our common stock, in which we sold 11,090,000 shares and the selling stockholders sold the remainder. Also, on January 24, 2017, we completed a secondary public offering in which Oaktree and certain members of management sold 14,375,000 shares of common stock at a price of $27.00 per share, including 1,875,000 shares purchased by the underwriters who fully exercised their option to purchase such shares. We received no proceeds from such offering but incurred fees of $1,166 ($508 in Fiscal 2016 and $658 in 1st Quarter 2017). Proceeds of $373,570, net of underwriting fees, were received by the selling stockholders. As a result of such secondary offering, we ceased being a “controlled company” within the meaning of the corporate governance standards of the New York Stock Exchange.