X | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
CLARCOR Inc. | ||
(Exact name of registrant as specified in its charter) |
DELAWARE | 36-0922490 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
840 Crescent Centre Drive, Suite 600, Franklin, Tennessee 37067 | ||
(Address of principal executive offices) |
Registrant’s telephone number, including area code: | 615-771-3100 |
No Change |
(Former name, former address and former fiscal year, if changed since last report.) |
Large accelerated filer | X | Accelerated filer | Non-accelerated filer | Smaller reporting company |
TABLE OF CONTENTS | PAGE | ||
Part I. FINANCIAL INFORMATION | |||
Financial Statements | |||
Management’s Discussion and Analysis of Financial Condition and Results of Operations | |||
Quantitative and Qualitative Disclosures About Market Risk | |||
Controls and Procedures | |||
Part II. OTHER INFORMATION | |||
Legal Proceedings | |||
Risk Factors | |||
Unregistered Sales of Equity Securities and Use of Proceeds | |||
Item 3. | Defaults Upon Senior Securities | * | |
Item 4. | Mine Safety Disclosures | * | |
Item 5. | Other Information | * | |
Exhibits |
Quarter Ended | Six Months Ended | |||||||||||||||
June 2, 2012 | May 28, 2011 | June 2, 2012 | May 28, 2011 | |||||||||||||
Net sales | $ | 284,855 | $ | 288,533 | $ | 542,119 | $ | 534,253 | ||||||||
Cost of sales | 186,670 | 189,071 | 357,719 | 353,838 | ||||||||||||
Gross profit | 98,185 | 99,462 | 184,400 | 180,415 | ||||||||||||
Selling and administrative expenses | 49,074 | 50,682 | 100,977 | 100,344 | ||||||||||||
Operating profit | 49,111 | 48,780 | 83,423 | 80,071 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest expense | (88 | ) | (221 | ) | (188 | ) | (265 | ) | ||||||||
Interest income | 169 | 239 | 303 | 276 | ||||||||||||
Other, net | (117 | ) | (228 | ) | 495 | (428 | ) | |||||||||
(36 | ) | (210 | ) | 610 | (417 | ) | ||||||||||
Earnings before income taxes | 49,075 | 48,570 | 84,033 | 79,654 | ||||||||||||
Provision for income taxes | 15,996 | 15,689 | 27,462 | 24,852 | ||||||||||||
Net earnings | 33,079 | 32,881 | 56,571 | 54,802 | ||||||||||||
Net earnings attributable to noncontrolling interests | (152 | ) | (73 | ) | (165 | ) | (113 | ) | ||||||||
Net earnings attributable to CLARCOR Inc. | $ | 32,927 | $ | 32,808 | $ | 56,406 | $ | 54,689 | ||||||||
Net earnings per share attributable to CLARCOR Inc. - Basic | $ | 0.65 | $ | 0.65 | $ | 1.12 | $ | 1.08 | ||||||||
Net earnings per share attributable to CLARCOR Inc. - Diluted | $ | 0.65 | $ | 0.64 | $ | 1.11 | $ | 1.07 | ||||||||
Weighted average number of shares outstanding - Basic | 50,378,164 | 50,594,963 | 50,394,680 | 50,581,731 | ||||||||||||
Weighted average number of shares outstanding - Diluted | 50,980,347 | 51,282,383 | 51,037,366 | 51,284,811 | ||||||||||||
Dividends paid per share | $ | 0.1200 | $ | 0.1050 | $ | 0.2400 | $ | 0.2100 |
June 2, 2012 | December 3, 2011 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 140,574 | $ | 155,999 | |||
Restricted cash | 616 | 1,105 | |||||
Accounts receivable, less allowance for losses of $10,266 and $9,795, respectively | 208,130 | 206,664 | |||||
Inventories | 210,896 | 200,274 | |||||
Deferred income taxes | 26,156 | 25,974 | |||||
Income taxes receivable | — | 3,373 | |||||
Prepaid expenses and other current assets | 7,169 | 7,510 | |||||
Total current assets | 593,541 | 600,899 | |||||
Plant assets, at cost, less accumulated depreciation of $303,845 and $293,111, respectively | 192,105 | 184,992 | |||||
Assets held for sale | 2,000 | 2,000 | |||||
Goodwill | 240,740 | 235,530 | |||||
Acquired intangible assets, less accumulated amortization | 98,071 | 98,674 | |||||
Deferred income taxes | 505 | 749 | |||||
Other noncurrent assets | 15,898 | 12,089 | |||||
Total assets | $ | 1,142,860 | $ | 1,134,933 | |||
LIABILITIES | |||||||
Current liabilities: | |||||||
Current portion of long-term debt | $ | 1,321 | $ | 1,289 | |||
Accounts payable and accrued liabilities | 142,610 | 155,585 | |||||
Income taxes payable | 847 | 3,176 | |||||
Total current liabilities | 144,778 | 160,050 | |||||
Long-term debt, less current portion | 16,598 | 15,981 | |||||
Long-term pension and postretirement healthcare benefits liabilities | 59,921 | 74,524 | |||||
Deferred income taxes | 42,240 | 36,194 | |||||
Other long-term liabilities | 8,759 | 11,069 | |||||
Total liabilities | 272,296 | 297,818 | |||||
Contingencies (Note 11) | |||||||
Redeemable noncontrolling interests | 1,615 | 1,557 | |||||
SHAREHOLDERS' EQUITY | |||||||
Capital stock | 50,141 | 50,145 | |||||
Capital in excess of par value | 16,773 | 19,453 | |||||
Accumulated other comprehensive loss | (52,698 | ) | (44,391 | ) | |||
Retained earnings | 853,959 | 809,520 | |||||
Total CLARCOR Inc. equity | 868,175 | 834,727 | |||||
Noncontrolling interests | 774 | 831 | |||||
Total shareholders' equity | 868,949 | 835,558 | |||||
Total liabilities and shareholders' equity | $ | 1,142,860 | $ | 1,134,933 |
Six Months Ended | |||||||
June 2, 2012 | May 28, 2011 | ||||||
Cash flows from operating activities: | |||||||
Net earnings | $ | 56,571 | $ | 54,802 | |||
Depreciation | 13,192 | 13,956 | |||||
Amortization | 2,877 | 2,750 | |||||
Other noncash items | (67 | ) | (175 | ) | |||
Net loss (gain) on disposition of plant assets | (553 | ) | 31 | ||||
Stock-based compensation expense | 4,152 | 3,700 | |||||
Excess tax benefit from stock-based compensation | (2,487 | ) | (2,041 | ) | |||
Deferred income taxes | 8,890 | (729 | ) | ||||
Change in assets and liabilities | (49,197 | ) | (33,138 | ) | |||
Net cash provided by operating activities | 33,378 | 39,156 | |||||
Cash flows from investing activities: | |||||||
Restricted cash | 91 | 172 | |||||
Business acquisitions, net of cash acquired | (10,510 | ) | (10,455 | ) | |||
Additions to plant assets | (19,398 | ) | (9,271 | ) | |||
Proceeds from disposition of plant assets | 446 | 233 | |||||
Investment in affiliates | (357 | ) | — | ||||
Net cash used in investing activities | (29,728 | ) | (19,321 | ) | |||
Cash flows from financing activities: | |||||||
Payments on long-term debt | (79 | ) | (1,797 | ) | |||
Payment of financing costs | (564 | ) | — | ||||
Sale of capital stock under stock option and employee purchase plans | 3,864 | 5,820 | |||||
Purchase of treasury stock | (11,383 | ) | (8,892 | ) | |||
Excess tax benefit from stock-based compensation | 2,487 | 2,041 | |||||
Cash dividends paid | (12,096 | ) | (10,618 | ) | |||
Net cash used in financing activities | (17,771 | ) | (13,446 | ) | |||
Net effect of exchange rate changes on cash | (1,304 | ) | (1,468 | ) | |||
Net change in cash and cash equivalents | (15,425 | ) | 4,921 | ||||
Cash and cash equivalents, beginning of period | 155,999 | 117,022 | |||||
Cash and cash equivalents, end of period | $ | 140,574 | $ | 121,943 | |||
Cash paid during the period for: | |||||||
Interest | $ | 144 | $ | 70 | |||
Income taxes, net of refunds | $ | 18,849 | $ | 13,785 |
CLARCOR Inc. NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Dollars in thousands except share data) (Unaudited) |
1. | CONSOLIDATED CONDENSED FINANCIAL STATEMENTS |
June 2, 2012 | December 3, 2011 | ||||||
Raw materials | $ | 75,784 | $ | 72,289 | |||
Work in process | 36,671 | 30,957 | |||||
Finished products | 98,441 | 97,028 | |||||
Inventories | $ | 210,896 | $ | 200,274 |
CLARCOR Inc. NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Dollars in thousands except share data) (Unaudited) |
CLARCOR Inc. NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Dollars in thousands except share data) (Unaudited) |
2. | BUSINESS ACQUISITIONS, INVESTMENTS AND REDEEMABLE NONCONTROLLING INTERESTS |
CLARCOR Inc. NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Dollars in thousands except share data) (Unaudited) |
3. | INCENTIVE PLANS AND STOCK-BASED COMPENSATION |
CLARCOR Inc. NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Dollars in thousands except share data) (Unaudited) |
Quarter Ended | Six Months Ended | |||||||||||||||
June 2, 2012 | May 28, 2011 | June 2, 2012 | May 28, 2011 | |||||||||||||
Pre-tax compensation expense | $ | 1,091 | $ | 977 | $ | 3,218 | $ | 2,850 | ||||||||
Deferred tax benefits | (401 | ) | (359 | ) | (1,183 | ) | (1,047 | ) | ||||||||
Excess tax benefits associated with tax deductions over the amount of compensation expense recognized in the consolidated condensed financial statements | 260 | 1,384 | 2,487 | 2,041 | ||||||||||||
Fair value of stock options on date of grant | 867 | 855 | 6,413 | 5,776 | ||||||||||||
Total intrinsic value of stock options exercised | 746 | 4,510 | 7,746 | 6,558 | ||||||||||||
Cash received upon exercise of stock options | 576 | 3,046 | 3,251 | 5,237 | ||||||||||||
Tax benefit realized from exercise of stock options, net | 259 | 1,380 | 2,481 | 2,035 | ||||||||||||
Addition to capital in excess of par value due to exercise of stock options | 772 | 3,244 | 4,059 | 5,994 |
Options Granted Under Incentive Plans | Weighted Average Exercise Price | ||||
Outstanding at beginning of year | 2,907,533 | $ | 32.39 | ||
Granted | 513,350 | $ | 49.84 | ||
Exercised | (291,239) | $ | 24.12 | ||
Surrendered | (15,293) | $ | 38.85 | ||
Outstanding at end of period | 3,114,351 | $ | 36.01 | ||
Exercisable at end of period | 2,090,698 | $ | 32.45 |
Options Outstanding | Options Exercisable | |||||||||||||||||||||||
Range of Exercise Prices | Number | Weighted Average Exercise Price | Intrinsic Value | Weighted Average Remaining Life in Years | Number | Weighted Average Exercise Price | Intrinsic Value | Weighted Average Remaining Life in Years | ||||||||||||||||
$16.15 - $22.80 | 148,300 | $ | 21.32 | $ | 3,991 | 1.44 | 148,300 | $ | 21.32 | $ | 3,991 | 1.44 | ||||||||||||
$25.31 - $38.06 | 1,984,640 | $ | 31.89 | 32,430 | 5.23 | 1,721,699 | $ | 31.80 | 28,286 | 4.93 | ||||||||||||||
$40.73 - $44.07 | 470,561 | $ | 43.00 | 2,460 | 8.58 | 160,699 | $ | 43.31 | 791 | 8.65 | ||||||||||||||
$49.91 | 510,850 | $ | 49.84 | — | 9.58 | 60,000 | $ | 49.35 | — | 0.00 | ||||||||||||||
3,114,351 | $ | 36.01 | $ | 38,881 | 6.27 | 2,090,698 | $ | 32.45 | $ | 33,068 | 5.11 |
CLARCOR Inc. NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Dollars in thousands except share data) (Unaudited) |
Six Months Ended | ||||||||
June 2, 2012 | May 28, 2011 | |||||||
Weighted average fair value per option at the date of grant for options granted | $ | 12.49 | $ | 11.73 | ||||
Risk-free interest rate | 1.38 | % | 2.52 | % | ||||
Expected dividend yield | 0.96 | % | 0.95 | % | ||||
Expected volatility factor | 26.52 | % | 25.53 | % | ||||
Expected option term in years | 6.1 | 6.4 |
Quarter Ended | Six Months Ended | |||||||||||||||
June 2, 2012 | May 28, 2011 | June 2, 2012 | May 28, 2011 | |||||||||||||
Pre-tax compensation expense | $ | 155 | $ | 118 | $ | 934 | $ | 850 | ||||||||
Deferred tax benefits | (57 | ) | (43 | ) | (343 | ) | (312 | ) | ||||||||
Excess tax (expense) benefits associated with tax deductions under the amount of compensation expense recognized in the consolidated condensed financial statements | (99 | ) | (44 | ) | (24 | ) | 83 | |||||||||
Fair value of restricted stock unit awards on date of grant | — | — | 1,489 | 1,263 | ||||||||||||
Fair value of restricted stock unit awards vested | — | 7 | 997 | 905 |
CLARCOR Inc. NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Dollars in thousands except share data) (Unaudited) |
Units | Weighted Average Grant Date Fair Value | |||||
Nonvested at beginning of year | 71,545 | $ | 36.95 | |||
Granted | 29,839 | $ | 49.91 | |||
Vested | (27,710 | ) | $ | 35.99 | ||
Nonvested at end of period | 73,674 | $ | 42.56 |
4. | COMPREHENSIVE EARNINGS |
Total Comprehensive Earnings (Loss), Net of Tax: | |||||||||||||||
Net Earnings | Foreign Currency and Other Adjustments | Pension Liability Adjustments | Total Comprehensive Earnings (Loss) | ||||||||||||
Quarter Ended | |||||||||||||||
June 2, 2012 | |||||||||||||||
CLARCOR Inc. | $ | 32,927 | $ | (12,451 | ) | $ | 1,084 | $ | 21,560 | ||||||
Non-redeemable noncontrolling interests | 29 | (102 | ) | — | (73 | ) | |||||||||
Redeemable noncontrolling interests | 123 | (93 | ) | — | 30 | ||||||||||
$ | 33,079 | $ | (12,646 | ) | $ | 1,084 | $ | 21,517 | |||||||
May 28, 2011 | |||||||||||||||
CLARCOR Inc. | $ | 32,808 | $ | 4,605 | $ | 678 | $ | 38,091 | |||||||
Non-redeemable noncontrolling interests | 54 | 1 | — | 55 | |||||||||||
Redeemable noncontrolling interests | 19 | (119 | ) | — | (100 | ) | |||||||||
$ | 32,881 | $ | 4,487 | $ | 678 | $ | 38,046 | ||||||||
Six Months Ended | |||||||||||||||
June 2, 2012 | |||||||||||||||
CLARCOR Inc. | $ | 56,406 | $ | (10,472 | ) | $ | 2,165 | $ | 48,099 | ||||||
Non-redeemable noncontrolling interests | (5 | ) | (52 | ) | — | (57 | ) | ||||||||
Redeemable noncontrolling interests | 170 | (112 | ) | — | 58 | ||||||||||
$ | 56,571 | $ | (10,636 | ) | $ | 2,165 | $ | 48,100 | |||||||
May 28, 2011 | |||||||||||||||
CLARCOR Inc. | $ | 54,689 | $ | 9,428 | $ | 2,206 | $ | 66,323 | |||||||
Non-redeemable noncontrolling interests | 106 | 1 | — | 107 | |||||||||||
Redeemable noncontrolling interests | 7 | (119 | ) | — | (112 | ) | |||||||||
$ | 54,802 | $ | 9,310 | $ | 2,206 | $ | 66,318 |
CLARCOR Inc. NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Dollars in thousands except share data) (Unaudited) |
June 2, 2012 | December 3, 2011 | ||||||
Pension liability, net of tax | $ | (42,491 | ) | $ | (44,656 | ) | |
Translation adjustments, net of tax | (10,207 | ) | 265 | ||||
Accumulated other comprehensive loss | $ | (52,698 | ) | $ | (44,391 | ) |
5. | GOODWILL AND ACQUIRED INTANGIBLE ASSETS |
Engine/Mobile Filtration | Industrial/ Environmental Filtration | Packaging | Total | ||||||||||||
Goodwill at beginning of year | $ | 21,087 | $ | 214,443 | $ | — | $ | 235,530 | |||||||
Acquisition | — | 5,596 | — | 5,596 | |||||||||||
Currency translation adjustments | (41 | ) | (345 | ) | — | (386 | ) | ||||||||
Goodwill at end of period | $ | 21,046 | $ | 219,694 | $ | — | $ | 240,740 |
Engine/Mobile Filtration | Industrial/ Environmental Filtration | Packaging | Total | ||||||||||||
June 2, 2012 | |||||||||||||||
Indefinite Lived Intangibles: | |||||||||||||||
Trademarks - indefinite lived | $ | 603 | $ | 41,355 | $ | — | $ | 41,958 | |||||||
Finite Lived Intangibles: | |||||||||||||||
Trademarks, gross - finite lived | $ | 291 | $ | 488 | $ | — | $ | 779 | |||||||
Accumulated amortization | (81 | ) | (309 | ) | — | (390 | ) | ||||||||
Trademarks, net - finite lived | $ | 210 | $ | 179 | $ | — | $ | 389 | |||||||
Customer relationships, gross | $ | 4,237 | $ | 45,336 | $ | — | $ | 49,573 | |||||||
Accumulated amortization | (1,618 | ) | (15,132 | ) | — | (16,750 | ) | ||||||||
Customer relationships, net | $ | 2,619 | $ | 30,204 | $ | — | $ | 32,823 | |||||||
Other acquired intangibles, gross | $ | 243 | $ | 39,865 | $ | — | $ | 40,108 | |||||||
Accumulated amortization | (243 | ) | (16,964 | ) | — | (17,207 | ) | ||||||||
Other acquired intangibles, net | $ | — | $ | 22,901 | $ | — | $ | 22,901 | |||||||
Total finite lived intangible assets, net | $ | 2,829 | $ | 53,284 | $ | — | $ | 56,113 | |||||||
Acquired intangible assets, less accumulated amortization | $ | 3,432 | $ | 94,639 | $ | — | $ | 98,071 |
CLARCOR Inc. NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Dollars in thousands except share data) (Unaudited) |
Fiscal year 2012 | $ | 5,874 | |
Fiscal year 2013 | 5,883 | ||
Fiscal year 2014 | 5,681 | ||
Fiscal year 2015 | 5,626 | ||
Fiscal year 2016 | 5,486 |
6. | FAIR VALUE MEASUREMENTS |
• | Level 1 – Quoted active market prices for identical assets |
• | Level 2 – Significant other observable inputs, such as quoted prices for similar (but not identical) instruments in active markets, quoted prices for identical or similar instruments in markets which are not active and model determined valuations in which all significant inputs or significant value-drivers are observable in active markets |
• | Level 3 – Significant unobservable inputs, such as model determined valuations in which one or more significant inputs or significant value-drivers are unobservable |
Fair Value Measurements at Reporting Date | |||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||
June 2, 2012 | |||||||||||||||
Restricted trust, included in Other noncurrent assets | |||||||||||||||
Mutual fund investments - equities | $ | 678 | $ | 678 | $ | — | $ | — | |||||||
Mutual fund investments - bonds | 464 | 464 | — | — | |||||||||||
Total restricted trust | $ | 1,142 | $ | 1,142 | $ | — | $ | — | |||||||
TransWeb contingent earn-out, included in Other long-term liabilities | $ | 1,220 | $ | — | $ | — | $ | 1,220 |
CLARCOR Inc. NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Dollars in thousands except share data) (Unaudited) |
Fair Value Measurements at Reporting Date | |||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||
December 3, 2011 | |||||||||||||||
Restricted trust, included in Other noncurrent assets | |||||||||||||||
Mutual fund investments - equities | $ | 659 | $ | 659 | $ | — | $ | — | |||||||
Mutual fund investments - bonds | 472 | 472 | — | — | |||||||||||
Total restricted trust | $ | 1,131 | $ | 1,131 | $ | — | $ | — | |||||||
TransWeb contingent earn-out, included in Other long-term liabilities | $ | 1,123 | $ | — | $ | — | $ | 1,123 |
CLARCOR Inc. NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Dollars in thousands except share data) (Unaudited) |
7. | ACCOUNTS PAYABLE, ACCRUED LIABILITIES AND GUARANTEES |
June 2, 2012 | December 3, 2011 | ||||||
Accounts payable | $ | 64,831 | $ | 64,701 | |||
Accrued salaries, wages and commissions | 11,370 | 24,760 | |||||
Compensated absences | 8,717 | 8,530 | |||||
Accrued insurance liabilities | 8,319 | 9,017 | |||||
Customer deposits | 13,312 | 8,727 | |||||
Other accrued liabilities | 36,061 | 39,850 | |||||
Accounts payable and accrued liabilities | $ | 142,610 | $ | 155,585 |
Six Months Ended | |||||||
June 2, 2012 | May 28, 2011 | ||||||
Warranty accrual at beginning of period | $ | 2,580 | $ | 3,499 | |||
Warranty accrual added through business acquisitions | 32 | — | |||||
Accruals for warranties issued during the period | 91 | 258 | |||||
Adjustments related to pre-existing warranties | 23 | (12 | ) | ||||
Settlements made during the period | (400 | ) | (441 | ) | |||
Other adjustments, including currency translation | (45 | ) | (35 | ) | |||
Warranty accrual at end of period | $ | 2,281 | $ | 3,269 |
CLARCOR Inc. NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Dollars in thousands except share data) (Unaudited) |
8. | LONG-TERM DEBT |
9. | PENSION AND OTHER POSTRETIREMENT PLANS |
Quarter Ended | Six Months Ended | |||||||||||||||
June 2, 2012 | May 28, 2011 | June 2, 2012 | May 28, 2011 | |||||||||||||
Pension Benefits: | ||||||||||||||||
Components of net periodic benefit cost (income): | ||||||||||||||||
Service cost | $ | 530 | $ | 492 | $ | 1,060 | $ | 984 | ||||||||
Interest cost | 1,980 | 2,014 | 3,959 | 4,024 | ||||||||||||
Expected return on plan assets | (2,105 | ) | (1,923 | ) | (4,208 | ) | (3,843 | ) | ||||||||
Settlement cost | — | — | — | 1,368 | ||||||||||||
Amortization of unrecognized: | ||||||||||||||||
Prior service cost | (3 | ) | (99 | ) | (6 | ) | (198 | ) | ||||||||
Net actuarial loss (gain) | 1,909 | 1,266 | 3,818 | 2,423 | ||||||||||||
Net periodic benefit cost (income) | $ | 2,311 | $ | 1,750 | $ | 4,623 | $ | 4,758 | ||||||||
Cash contributions | $ | 1,575 | $ | 204 | $ | 14,928 | $ | 2,242 | ||||||||
Postretirement Healthcare Benefits: | ||||||||||||||||
Components of net periodic benefit cost (income): | ||||||||||||||||
Interest cost | $ | 4 | $ | 6 | $ | 8 | $ | 12 | ||||||||
Amortization of unrecognized: | ||||||||||||||||
Prior service cost | (31 | ) | (31 | ) | (62 | ) | (62 | ) | ||||||||
Net actuarial loss (gain) | (30 | ) | (32 | ) | (60 | ) | (64 | ) | ||||||||
Net periodic benefit cost (income) | $ | (57 | ) | $ | (57 | ) | $ | (114 | ) | $ | (114 | ) | ||||
Cash contributions | $ | 25 | $ | 30 | $ | 50 | $ | 60 |
CLARCOR Inc. NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Dollars in thousands except share data) (Unaudited) |
U.S. Qualified Plans | $ | 18,968 | |
U.S. Combined Nonqualified Plans | 219 | ||
Non-U.S. Plan | 415 | ||
Postretirement Healthcare Benefit Plan | 99 | ||
Total expected contributions | $ | 19,701 |
10. | INCOME TAXES |
Six Months Ended | |||||||
June 2, 2012 | May 28, 2011 | ||||||
Unrecognized tax benefits at beginning of year | $ | 3,015 | $ | 2,783 | |||
Additions for current period tax positions | 179 | 267 | |||||
Changes in interest and penalties | 123 | 31 | |||||
Unrecognized tax benefits at end of period | $ | 3,317 | $ | 3,081 |
CLARCOR Inc. NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Dollars in thousands except share data) (Unaudited) |
11. | CONTINGENCIES |
CLARCOR Inc. NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Dollars in thousands except share data) (Unaudited) |
CLARCOR Inc. NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Dollars in thousands except share data) (Unaudited) |
12. | EARNINGS PER SHARE AND TREASURY STOCK TRANSACTIONS |
Quarter Ended | Six Months Ended | |||||||||||||||
June 2, 2012 | May 28, 2011 | June 2, 2012 | May 28, 2011 | |||||||||||||
Weighted average number of shares outstanding - Basic | 50,378,164 | 50,594,963 | 50,394,680 | 50,581,731 | ||||||||||||
Dilutive effect of stock-based arrangements | 602,183 | 687,420 | 642,686 | 703,080 | ||||||||||||
Weighted average number of shares outstanding - Diluted | 50,980,347 | 51,282,383 | 51,037,366 | 51,284,811 | ||||||||||||
Net earnings attributable to CLARCOR Inc. | $ | 32,927 | $ | 32,808 | $ | 56,406 | $ | 54,689 | ||||||||
Net earnings per share attributable to CLARCOR Inc. - Basic | $ | 0.65 | $ | 0.65 | $ | 1.12 | $ | 1.08 | ||||||||
Net earnings per share attributable to CLARCOR Inc. - Diluted | $ | 0.65 | $ | 0.64 | $ | 1.11 | $ | 1.07 |
Quarter Ended | Six Months Ended | |||||||||||||||
June 2, 2012 | May 28, 2011 | June 2, 2012 | May 28, 2011 | |||||||||||||
Number of antidilutive options with exercise prices greater than the average market price excluded from the computation of dilutive earnings per share | 510,850 | 60,000 | 510,850 | 60,000 | ||||||||||||
Common stock repurchased and retired pursuant to the Company's stock repurchase program | $ | 7,748 | $ | 6,945 | $ | 11,383 | $ | 8,892 | ||||||||
Number of shares repurchased and retired pursuant to the Company's stock repurchase program | 157,500 | 160,000 | 227,500 | 205,000 |
CLARCOR Inc. NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Dollars in thousands except share data) (Unaudited) |
13. | SEGMENT INFORMATION |
Quarter Ended | Six Months Ended | |||||||||||||||
June 2, 2012 | May 28, 2011 | June 2, 2012 | May 28, 2011 | |||||||||||||
Net sales: | ||||||||||||||||
Engine/Mobile Filtration | $ | 130,677 | $ | 131,276 | $ | 250,960 | $ | 242,604 | ||||||||
Industrial/Environmental Filtration | 134,629 | 133,499 | 255,743 | 245,618 | ||||||||||||
Packaging | 19,549 | 23,758 | 35,416 | 46,031 | ||||||||||||
$ | 284,855 | $ | 288,533 | $ | 542,119 | $ | 534,253 | |||||||||
Operating profit: | ||||||||||||||||
Engine/Mobile Filtration | $ | 29,628 | $ | 29,592 | $ | 52,925 | $ | 50,794 | ||||||||
Industrial/Environmental Filtration | 17,747 | 16,179 | 28,452 | 23,427 | ||||||||||||
Packaging | 1,736 | 3,009 | 2,046 | 5,850 | ||||||||||||
49,111 | 48,780 | 83,423 | 80,071 | |||||||||||||
Other income (expense), net | (36 | ) | (210 | ) | 610 | (417 | ) | |||||||||
Earnings before income taxes | $ | 49,075 | $ | 48,570 | $ | 84,033 | $ | 79,654 |
June 2, 2012 | December 3, 2011 | ||||||
Identifiable assets: | |||||||
Engine/Mobile Filtration | $ | 356,869 | $ | 338,197 | |||
Industrial/Environmental Filtration | 695,353 | 693,266 | |||||
Packaging | 38,336 | 39,571 | |||||
Corporate | 52,302 | 63,899 | |||||
$ | 1,142,860 | $ | 1,134,933 |
Second Quarter | First Six Months | ||||||||||||||||||||||||||||||
Change | Change | ||||||||||||||||||||||||||||||
2012 | 2011 | $ | % | 2012 | 2011 | $ | % | ||||||||||||||||||||||||
Net sales | $ | 284,855 | $ | 288,533 | $ | (3,678 | ) | -1 | % | $ | 542,119 | $ | 534,253 | $ | 7,866 | 1 | % | ||||||||||||||
Cost of sales | 186,670 | 189,071 | (2,401 | ) | -1 | % | 357,719 | 353,838 | 3,881 | 1 | % | ||||||||||||||||||||
Gross profit | 98,185 | 99,462 | (1,277 | ) | -1 | % | 184,400 | 180,415 | 3,985 | 2 | % | ||||||||||||||||||||
Selling and administrative expenses | 49,074 | 50,682 | (1,608 | ) | -3 | % | 100,977 | 100,344 | 633 | 1 | % | ||||||||||||||||||||
Operating profit | 49,111 | 48,780 | 331 | 1 | % | 83,423 | 80,071 | 3,352 | 4 | % | |||||||||||||||||||||
Other income (expense) | (36 | ) | (210 | ) | 174 | 610 | (417 | ) | 1,027 | ||||||||||||||||||||||
Provision for income taxes | 15,996 | 15,689 | 307 | 2 | % | 27,462 | 24,852 | 2,610 | 11 | % | |||||||||||||||||||||
Net earnings attributable to CLARCOR | 32,927 | 32,808 | 119 | — | % | 56,406 | 54,689 | 1,717 | 3 | % | |||||||||||||||||||||
Weighted average diluted shares | 50,980 | 51,282 | (302 | ) | -1 | % | 51,037 | 51,285 | (248 | ) | — | % | |||||||||||||||||||
Diluted earnings per share attributable to CLARCOR | $ | 0.65 | $ | 0.64 | $ | 0.01 | 2 | % | $ | 1.11 | $ | 1.07 | $ | 0.04 | 4 | % | |||||||||||||||
Percentages: | |||||||||||||||||||||||||||||||
Gross margin | 34.5 | % | 34.5 | % | — | pt | 34.0 | % | 33.8 | % | 0.2 | pt | |||||||||||||||||||
Selling and administrative percentage | 17.3 | % | 17.6 | % | -0.3 | pt | 18.6 | % | 18.8 | % | -0.2 | pt | |||||||||||||||||||
Operating margin | 17.2 | % | 16.9 | % | 0.3 | pt | 15.4 | % | 15.0 | % | 0.4 | pt | |||||||||||||||||||
Effective tax rate | 32.6 | % | 32.3 | % | 0.3 | pt | 32.7 | % | 31.2 | % | 1.5 | pt | |||||||||||||||||||
Net earnings margin | 11.6 | % | 11.4 | % | 0.2 | pt | 10.4 | % | 10.2 | % | 0.2 | pt |
Volume | -2 | % | |
Pricing | 2 | % | |
Foreign exchange | -1 | % | |
-1 | % |
Volume | — | % | |
Pricing | 2 | % | |
Foreign exchange | (1 | )% | |
1 | % |
• | Acquisitions |
• | Foreign Exchange |
(Dollars in thousands) | Second Quarter | First Six Months | ||||||
Net sales | $ | (3,859 | ) | $ | (4,668 | ) | ||
Operating profit | (759 | ) | (844 | ) |
• | Other income (expense) |
(Dollars in thousands) | Second Quarter | First Six Months | ||||||
2012 | $ | (16 | ) | $ | (517 | ) | ||
2011 | (393 | ) | (410 | ) |
• | Provisions for income taxes |
• | Shares outstanding |
Second Quarter | First Six Months | |||||||||||||||||||||||||||
(Dollars in thousands) | 2012 | % Total | 2011 | % Total | 2012 | % Total | 2011 | % Total | ||||||||||||||||||||
Net sales: | ||||||||||||||||||||||||||||
Engine/Mobile Filtration | $ | 130,677 | 46 | % | $ | 131,276 | 45 | % | $ | 250,960 | 46 | % | $ | 242,604 | 45 | % | ||||||||||||
Industrial/Environmental Filtration | 134,629 | 47 | % | 133,498 | 46 | % | 255,743 | 47 | % | 245,618 | 46 | % | ||||||||||||||||
Packaging | 19,549 | 7 | % | 23,759 | 9 | % | 35,416 | 7 | % | 46,031 | 9 | % | ||||||||||||||||
$ | 284,855 | 100 | % | $ | 288,533 | 100 | % | $ | 542,119 | 100 | % | $ | 534,253 | 100 | % | |||||||||||||
Gross profit: | ||||||||||||||||||||||||||||
Engine/Mobile Filtration | $ | 47,755 | 49 | % | $ | 48,264 | 49 | % | $ | 91,735 | 50 | % | $ | 88,395 | 49 | % | ||||||||||||
Industrial/Environmental Filtration | 46,551 | 47 | % | 45,658 | 46 | % | 86,168 | 47 | % | 81,067 | 45 | % | ||||||||||||||||
Packaging | 3,879 | 4 | % | 5,540 | 5 | % | 6,497 | 3 | % | 10,953 | 6 | % | ||||||||||||||||
$ | 98,185 | 100 | % | $ | 99,462 | 100 | % | $ | 184,400 | 100 | % | $ | 180,415 | 100 | % | |||||||||||||
Operating profit: | ||||||||||||||||||||||||||||
Engine/Mobile Filtration | $ | 29,628 | 60 | % | $ | 29,592 | 61 | % | $ | 52,925 | 63 | % | $ | 50,794 | 63 | % | ||||||||||||
Industrial/Environmental Filtration | 17,747 | 36 | % | 16,179 | 33 | % | 28,452 | 34 | % | 23,427 | 29 | % | ||||||||||||||||
Packaging | 1,736 | 4 | % | 3,009 | 6 | % | 2,046 | 3 | % | 5,850 | 8 | % | ||||||||||||||||
$ | 49,111 | 100 | % | $ | 48,780 | 100 | % | $ | 83,423 | 100 | % | $ | 80,071 | 100 | % | |||||||||||||
Gross margin: | ||||||||||||||||||||||||||||
Engine/Mobile Filtration | 36.5 | % | 36.8 | % | 36.6 | % | 36.4 | % | ||||||||||||||||||||
Industrial/Environmental Filtration | 34.6 | % | 34.2 | % | 33.7 | % | 33.0 | % | ||||||||||||||||||||
Packaging | 19.8 | % | 23.3 | % | 18.3 | % | 23.8 | % | ||||||||||||||||||||
34.5 | % | 34.5 | % | 34.0 | % | 33.8 | % | |||||||||||||||||||||
Operating margin: | ||||||||||||||||||||||||||||
Engine/Mobile Filtration | 22.7 | % | 22.5 | % | 21.1 | % | 20.9 | % | ||||||||||||||||||||
Industrial/Environmental Filtration | 13.2 | % | 12.1 | % | 11.1 | % | 9.5 | % | ||||||||||||||||||||
Packaging | 8.9 | % | 12.7 | % | 5.8 | % | 12.7 | % | ||||||||||||||||||||
17.2 | % | 16.9 | % | 15.4 | % | 15.0 | % |
Second Quarter | ||||||||||||||||
Change | ||||||||||||||||
(Dollars in thousands) | 2012 | 2011 | $ | % | ||||||||||||
Net sales | $ | 130,677 | $ | 131,276 | $ | (599 | ) | — | % | |||||||
Cost of sales | 82,922 | 83,012 | (90 | ) | — | % | ||||||||||
Gross profit | 47,755 | 48,264 | (509 | ) | -1 | % | ||||||||||
Selling and administrative expenses | 18,127 | 18,673 | (546 | ) | -3 | % | ||||||||||
Operating profit | 29,628 | 29,591 | 37 | — | % | |||||||||||
Gross margin | 36.5% | 36.8% | -0.3 | pt | ||||||||||||
Selling and administrative percentage | 13.9% | 14.2% | -0.3 | pt | ||||||||||||
Operating margin | 22.7% | 22.5% | 0.2 | pt |
First Six Months | ||||||||||||||||
Change | ||||||||||||||||
(Dollars in thousands) | 2012 | 2011 | $ | % | ||||||||||||
Net sales | $ | 250,960 | $ | 242,604 | $ | 8,356 | 3 | % | ||||||||
Cost of sales | 159,225 | 154,209 | 5,016 | 3 | % | |||||||||||
Gross profit | 91,735 | 88,395 | 3,340 | 4 | % | |||||||||||
Selling and administrative expenses | 38,810 | 37,601 | 1,209 | 3 | % | |||||||||||
Operating profit | 52,925 | 50,794 | 2,131 | 4 | % | |||||||||||
Gross margin | 36.6% | 36.4% | 0.2 | pt | ||||||||||||
Selling and administrative percentage | 15.5% | 15.5% | — | pt | ||||||||||||
Operating margin | 21.1% | 20.9% | 0.2 | pt |
Second Quarter | First Six Months | |||||
Volume | — | % | 3 | % | ||
Pricing | 1 | % | 1 | % | ||
Foreign exchange | (1 | )% | (1 | )% | ||
— | % | 3 | % |
(Dollars in thousands) | Second Quarter | First Six Months | ||||||
2011 | $ | 131,276 | $ | 242,604 | ||||
U.S. net sales | 636 | 8,471 | ||||||
Foreign net sales (including export) | 366 | 1,696 | ||||||
Foreign exchange | (1,601 | ) | (1,811 | ) | ||||
Net (decrease) increase | (599 | ) | 8,356 | |||||
2012 | $ | 130,677 | $ | 250,960 |
(Dollars in thousands) | Second Quarter | First Six Months | ||||||
Heavy-duty engine filters | $ | 378 | $ | 8,026 | ||||
Locomotive filters | (157 | ) | (154 | ) | ||||
Other | 415 | 599 | ||||||
Increase in U.S. net sales | $ | 636 | $ | 8,471 |
(Dollars in thousands) | Second Quarter | First Six Months | ||||||
Export sales primarily to Southeast Asia, South America and the Middle East | $ | 1,569 | $ | 3,274 | ||||
Local sales in Europe, North and South Africa, Australia and Mexico | 1,002 | 2,337 | ||||||
China first-fit OEM filter sales | (2,366 | ) | (4,345 | ) | ||||
Other | 161 | 430 | ||||||
Increase in foreign net sales | $ | 366 | $ | 1,696 |
Second Quarter | ||||||||||||||||
Change | ||||||||||||||||
(Dollars in thousands) | 2012 | 2011 | $ | % | ||||||||||||
Net sales | $ | 134,629 | $ | 133,498 | $ | 1,131 | 1 | % | ||||||||
Cost of sales | 88,078 | 87,840 | 238 | — | % | |||||||||||
Gross profit | 46,551 | 45,658 | 893 | 2 | % | |||||||||||
Selling and administrative expenses | 28,804 | 29,479 | (675 | ) | -2 | % | ||||||||||
Operating profit | 17,747 | 16,179 | 1,568 | 10 | % | |||||||||||
Gross margin | 34.6% | 34.2% | 0.4 | pt | ||||||||||||
Selling and administrative percentage | 21.4% | 22.1% | -0.7 | pt | ||||||||||||
Operating margin | 13.2% | 12.1% | 1.1 | pt |
First Six Months | ||||||||||||||||
Change | ||||||||||||||||
(Dollars in thousands) | 2012 | 2011 | $ | % | ||||||||||||
Net sales | $ | 255,743 | $ | 245,618 | $ | 10,125 | 4 | % | ||||||||
Cost of sales | 169,575 | 164,551 | 5,024 | 3 | % | |||||||||||
Gross profit | 86,168 | 81,067 | 5,101 | 6 | % | |||||||||||
Selling and administrative expenses | 57,716 | 57,640 | 76 | — | % | |||||||||||
Operating profit | 28,452 | 23,427 | 5,025 | 21 | % | |||||||||||
Gross margin | 33.7% | 33.0% | 0.7 | pt | ||||||||||||
Selling and administrative percentage | 22.6% | 23.5% | -0.9 | pt | ||||||||||||
Operating margin | 11.1% | 9.5% | 1.6 | pt |
Second Quarter | First Six Months | |||||
Volume | — | % | 2 | % | ||
Pricing | 3 | % | 3 | % | ||
Foreign exchange | -2 | % | -1 | % | ||
1 | % | 4 | % |
(Dollars in thousands) | Second Quarter | First Six Months | ||||||
2011 | $ | 133,498 | $ | 245,618 | ||||
U.S. net sales | 55 | 10,442 | ||||||
Foreign net sales (including export) | 3,333 | 2,541 | ||||||
Foreign exchange | (2,257 | ) | (2,858 | ) | ||||
Net increase | 1,131 | 10,125 | ||||||
2012 | $ | 134,629 | $ | 255,743 |
(Dollars in thousands) | Second Quarter | First Six Months | ||||||
Filter sales through Total Filtration Services ("TFS") | $ | 2,776 | $ | 5,196 | ||||
Aerospace, oil drilling and other industrial filters | 943 | 2,443 | ||||||
Aviation and marine fuel - vessels and aftermarket filters | (2,509 | ) | (1,807 | ) | ||||
Natural gas - vessels and aftermarket filters | (834 | ) | 2,149 | |||||
Air filtration | 143 | 1,640 | ||||||
Dust collector systems | 68 | 1,242 | ||||||
Other | (532 | ) | (421 | ) | ||||
Increase in U.S. net sales | $ | 55 | $ | 10,442 |
• | Higher sales at TFS were in part the result of the acquisition of PDDA Filtration, Inc. in the first quarter of 2012 which contributed $1.1 million of U.S. net sales in the second quarter and $1.7 million of U.S. net sales in the first six months of 2012. The balance of the net sales increase at TFS was the result of higher filter sales to a variety of markets including automotive, food and beverage, oil and gas, chemical and general industrial. |
• | Higher sales to the aerospace, oil drilling and other industrial markets were primarily due to higher filtration sales to the military aerospace and domestic oil and gas markets. |
• | Lower sales in the aviation and marine fuel filtration markets in the second quarter were the result of reduced sales to both commercial and military customers. Lower sales in commercial aviation was due to lower aftermarket filter demand as several airports removed fueling equipment from service and lower vessel demand as the pace of airport build and expansion in the U.S. has declined. The reduction in U.S. military aviation and marine sales was primarily due to the significant decline in U.S. military operations around the world. |
• | Lower sales in the natural gas market in the second quarter of 2012 was primarily the result of the timing of several significant vessel orders in the second quarter of 2011. Higher sales in the natural gas market in the first six months of 2012 compared with the same period last year was in part due to higher vessel sales to support natural gas drilling, processing and delivery from shale formations. |
• | Sales of air filtration products slightly increased in the second quarter of 2012 due to higher sales to wholesale customers including the impact of a price increase. These higher sales to wholesale customers were partially offset by lower sales to retail customers as we turned-over some lower profit retail business. Higher sales in the first six months of 2012 compared to the same period last year was driven by sales to a significant new commercial customer commencing in the second quarter of 2011. |
• | Higher dust collector system sales were the result of higher OEM sales of Dust Hog® products including weld fume collection systems |
(Dollars in thousands) | Second Quarter | First Six Months | ||||||
Natural gas vessel and aftermarket filter sales (Asia, Mexico, Canada) | $ | 2,458 | $ | 3,738 | ||||
Dust collector sales (Europe) | 1,027 | 2,003 | ||||||
Filtration media export sales (Europe) | 867 | 1,238 | ||||||
Acquisition of Modular (Australia) | 616 | 616 | ||||||
Aviation vessel and aftermarket filter sales (Europe) | 572 | (1,802 | ) | |||||
Off-shore oil drilling filter export sales (Europe, Asia) | (1,339 | ) | (2,991 | ) | ||||
Other | (868 | ) | (261 | ) | ||||
Increase in foreign net sales | $ | 3,333 | $ | 2,541 |
Second Quarter | ||||||||||||||||
Change | ||||||||||||||||
(Dollars in thousands) | 2012 | 2011 | $ | % | ||||||||||||
Net sales | $ | 19,549 | $ | 23,759 | $ | (4,210 | ) | -18 | % | |||||||
Cost of sales | 15,670 | 18,219 | (2,549 | ) | -14 | % | ||||||||||
Gross profit | 3,879 | 5,540 | (1,661 | ) | -30 | % | ||||||||||
Selling and administrative expenses | 2,143 | 2,531 | (388 | ) | -15 | % | ||||||||||
Operating profit | 1,736 | 3,009 | (1,273 | ) | -42 | % | ||||||||||
Gross margin | 19.8% | 23.3% | -3.5 | pt | ||||||||||||
Selling and administrative percentage | 11.0% | 10.7% | 0.3 | pt | ||||||||||||
Operating margin | 8.9% | 12.7% | -3.8 | pt |
First Six Months | ||||||||||||||||
Change | ||||||||||||||||
(Dollars in thousands) | 2012 | 2011 | $ | % | ||||||||||||
Net sales | $ | 35,416 | $ | 46,031 | $ | (10,615 | ) | -23 | % | |||||||
Cost of sales | 28,919 | 35,078 | (6,159 | ) | -18 | % | ||||||||||
Gross profit | 6,497 | 10,953 | (4,456 | ) | -41 | % | ||||||||||
Selling and administrative expenses | 4,451 | 5,103 | (652 | ) | -13 | % | ||||||||||
Operating profit | 2,046 | 5,850 | (3,804 | ) | -65 | % | ||||||||||
Gross margin | 18.3% | 23.8% | -5.5 | pt | ||||||||||||
Selling and administrative percentage | 12.5% | 11.1% | 1.4 | pt | ||||||||||||
Operating margin | 5.8% | 12.7% | -6.9 | pt |
(Dollars in thousands) | Second Quarter | First Six Months | ||||||
Decorated flat sheet metal | $ | (1,771 | ) | $ | (3,065 | ) | ||
Smokeless tobacco packaging | (1,229 | ) | (2,657 | ) | ||||
Confection packaging | (726 | ) | (2,858 | ) | ||||
Film packaging | (495 | ) | (896 | ) | ||||
Spice packaging | (398 | ) | (1,072 | ) | ||||
Other | 409 | (67 | ) | |||||
Decrease in U.S. net sales | $ | (4,210 | ) | $ | (10,615 | ) |
• | physical damage to and complete or partial closure of one or more of our manufacturing facilities |
• | temporary or long-term disruption in the supply of raw materials from our suppliers |
• | disruption in the transport of our products to customers and end users |
• | delay in the delivery of our products to our customers |
• | statements and assumptions relating to anticipated future growth, earnings, earnings per share and other financial performance measures; |
• | statements regarding management's short-term and long-term performance goals; |
• | statements regarding anticipated order patterns from our customers or the anticipated economic conditions of the industries and markets that we serve; |
• | statements related to the performance of the U.S. and other economies generally; |
• | statements relating to the anticipated effects on results of operations or financial condition from recent and expected developments or events, including acquisitions; |
• | statements regarding our current cost structure positions and ability to capitalize on anticipated growth initiatives; |
• | statements related to whether the conditions to the Settlement Agreement will be satisfied or the timing of the satisfaction of such conditions, or related to whether final judicial approval of the Settlement Agreement will be obtained; |
• | statements related to our cash resources, borrowing capacity and compliance with financial covenants under the Credit Facility; |
• | statements related to anticipated total litigation related amounts with respect to the 3M lawsuit referenced in Note 11; and |
• | any other statements or assumptions that are not historical facts. |
COMPANY PURCHASES OF EQUITY SECURITIES | ||||||||||||
(a) | (b) | (c) | (d) | |||||||||
Period | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of the Company's publicly announced plan | Maximum approximate dollar value of shares that may yet be purchased under the Plan | ||||||||
March 4, 2012 through April 7, 2012 | 60,000 | $ | 49.98 | 60,000 | $197,771,601 | |||||||
April 8, 2012 through May 5, 2012 | 50,000 | $ | 48.46 | 50,000 | $195,348,493 | |||||||
May 6, 2012 through June 2, 2012 | 47,500 | $ | 48.96 | 47,500 | $193,022,916 | |||||||
Total | 157,500 | 157,500 |
a. | Exhibits: | |
* 31.1 | Certification of Christopher L. Conway pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
* 31.2 | Certification of David J. Fallon pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
* 32 | Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
** 101.INS | XBRL Instance Document ++ | |
** 101.SCH | XBRL Taxonomy Extension Schema Document ++ | |
** 101.CAL | XBRL Taxonomy Extension Calculation Linkbase ++ | |
** 101.DEF | XBRL Taxonomy Extension Definition Linkbase ++ | |
** 101.LAB | XBRL Taxonomy Extension Label Linkbase ++ | |
** 101.PRE | XBRL Taxonomy Extension Presentation Linkbase ++ |
* | Filed herewith. | |
** | Submitted electronically with this 2012 Quarterly Report on Form 10-Q. | |
++ | XBRL information is furnished and not filed for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934, and is not subject to liability under those sections, is not part of any registration statement or prospectus to which it relates and is not incorporated or deemed to be incorporated by reference into any registration statement, prospectus or other document. |
June 22, 2012 | By | /s/ Christopher L. Conway | |
(Date) | Christopher L. Conway | ||
President and Chief Executive Officer | |||
June 22, 2012 | By | /s/ David J. Fallon | |
(Date) | David J. Fallon | ||
Chief Financial Officer and Chief Accounting Officer |
1. | I have reviewed this quarterly report on Form 10-Q of CLARCOR Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | June 22, 2012 | /s/ Christopher L. Conway |
Christopher L. Conway | ||
President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of CLARCOR Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | June 22, 2012 | /s/ David J. Fallon |
David J. Fallon | ||
Chief Financial Officer and Chief Accounting Officer |
June 22, 2012 | By | /s/ Christopher L. Conway | |
(Date) | Christopher L. Conway | ||
President and Chief Executive Officer | |||
June 22, 2012 | By | /s/ David J. Fallon | |
(Date) | David J. Fallon | ||
Chief Financial Officer and Chief Accounting Officer |
INCENTIVE PLANS AND STOCK-BASED COMPENSATION (Details 3) (USD $)
|
6 Months Ended |
---|---|
Jun. 02, 2012
|
|
Stock Option Activity in Shares [Abstract] | |
Outstanding at beginning of year | 2,907,533 |
Granted | 513,350 |
Exercised | (291,239) |
Surrendered | (15,293) |
Outstanding at end of period | 3,114,351 |
Exercisable at end of period | 2,090,698 |
Weighted Average Exercise Prices - Stock Options [Roll Forward] | |
Weighted Average Exercise Price - Outstanding Beginning of Year | $ 32.39 |
Weighted Average Exercise Price - Granted | $ 49.84 |
Weighted Average Exercise Price - Exercised | $ 24.12 |
Weighted Average Exercise Price - Surrendered | $ 38.85 |
Weighted Average Exercise Price - Outstanding End of Period | $ 36.01 |
Weighted Average Exercise Price - Exercisable | $ 32.45 |
PENSION AND OTHER POSTRETIREMENT PLANS (Details 2) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 02, 2012
|
Jun. 02, 2012
|
Dec. 03, 2011
|
Jun. 02, 2012
U.S. Qualified Plans [Member]
|
Jun. 02, 2012
U.S. Combined Nonqualified Plans [Member]
|
Jun. 02, 2012
Non-U.S. Plan [Member]
|
Jun. 02, 2012
Postretirement Healthcare Benefit Plan [Member]
|
May 28, 2011
Postretirement Healthcare Benefit Plan [Member]
|
Jun. 02, 2012
Postretirement Healthcare Benefit Plan [Member]
|
May 28, 2011
Postretirement Healthcare Benefit Plan [Member]
|
|
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Cash contributions | $ 1,600 | $ 14,978 | $ 25 | $ 30 | $ 50 | $ 60 | ||||
Defined Benefit Plan Estimated Employer Contributions In Current Fiscal Year | 19,701 | 19,701 | 18,968 | 219 | 415 | 99 | 99 | |||
Restricted trust, included in Other noncurrent assets | $ 1,142 | $ 1,142 | $ 1,131 |
FAIR VALUE MEASUREMENTS (Details 1) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | 0 Months Ended | 6 Months Ended | |||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 02, 2012
|
Dec. 03, 2011
|
Jun. 02, 2012
Mutual fund investments - equities [Member]
|
Dec. 03, 2011
Mutual fund investments - equities [Member]
|
Jun. 02, 2012
Mutual fund investments - bonds [Member]
|
Dec. 03, 2011
Mutual fund investments - bonds [Member]
|
Jun. 02, 2012
Level 1 [Member]
|
Dec. 03, 2011
Level 1 [Member]
|
Jun. 02, 2012
Level 1 [Member]
Mutual fund investments - equities [Member]
|
Dec. 03, 2011
Level 1 [Member]
Mutual fund investments - equities [Member]
|
Jun. 02, 2012
Level 1 [Member]
Mutual fund investments - bonds [Member]
|
Dec. 03, 2011
Level 1 [Member]
Mutual fund investments - bonds [Member]
|
Jun. 02, 2012
Level 2 [Member]
|
Dec. 03, 2011
Level 2 [Member]
|
Jun. 02, 2012
Level 2 [Member]
Mutual fund investments - equities [Member]
|
Dec. 03, 2011
Level 2 [Member]
Mutual fund investments - equities [Member]
|
Jun. 02, 2012
Level 2 [Member]
Mutual fund investments - bonds [Member]
|
Dec. 03, 2011
Level 2 [Member]
Mutual fund investments - bonds [Member]
|
Jun. 02, 2012
Level 3 [Member]
|
Dec. 03, 2011
Level 3 [Member]
|
Jun. 02, 2012
Level 3 [Member]
Mutual fund investments - equities [Member]
|
Dec. 03, 2011
Level 3 [Member]
Mutual fund investments - equities [Member]
|
Jun. 02, 2012
Level 3 [Member]
Mutual fund investments - bonds [Member]
|
Dec. 03, 2011
Level 3 [Member]
Mutual fund investments - bonds [Member]
|
Dec. 29, 2010
TransWeb [Member]
|
Jun. 02, 2012
TransWeb [Member]
|
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||||||||||||
Restricted trust, included in Other noncurrent assets | $ 1,142 | $ 1,131 | $ 678 | $ 659 | $ 464 | $ 472 | $ 1,142 | $ 1,131 | $ 678 | $ 659 | $ 464 | $ 472 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||
Contingent earn-out, included in Other long-term liabilities | 1,220 | 1,123 | 0 | 0 | 0 | 0 | 1,220 | 1,123 | 1,018 | |||||||||||||||||
Contingent earn-out, Contingent Consideration, Accounting Treatment | The contingent liability for the earn-out payment will continue to be accounted for and measured at fair value until the contingency is settled | |||||||||||||||||||||||||
Contingent earn-out, Contingent Consideration, Settlement Date | Nov. 30, 2016 | |||||||||||||||||||||||||
Fair Value, Other Liabilities, Valuation Techniques | The contingent consideration payment is revalued to its current fair value at each reporting date. Any increase or decrease in the fair value, as a result of changes in significant inputs such as the discount rate, the discount period or other factors used in the calculation, is recognized in Selling and administrative expenses in the Consolidated Condensed Statements of Earnings in the period the estimated fair value changes. The fair value of the contingent consideration was estimated using a probability-weighted discounted cash flow model with a discount rate | |||||||||||||||||||||||||
Contingent earn-out, Fair Value, Other Liabilities, Valuation Discount Rate | 11.90% | |||||||||||||||||||||||||
Change in fair value of TransWeb contingent earn-out | $ 97 |
INCOME TAXES (Details 1) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | |
---|---|---|
Jun. 02, 2012
|
May 28, 2011
|
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized tax benefits at beginning of year | $ 3,015 | $ 2,783 |
Additions for current period tax positions | 179 | 267 |
Changes in interest and penalties | 123 | 31 |
Unrecognized tax benefits at end of period | $ 3,317 | $ 3,081 |
BUSINESS ACQUISITIONS, INVESTMENTS AND REDEEMABLE NONCONTROLLING INTERESTS (Details 1) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 02, 2012
|
May 28, 2011
|
Jun. 02, 2012
|
May 28, 2011
|
Dec. 03, 2011
|
Jun. 02, 2012
Fair Value, Inputs, Level 3 [Member]
|
Dec. 03, 2011
Fair Value, Inputs, Level 3 [Member]
|
May 09, 2012
Modular [Member]
|
Jun. 02, 2012
Modular [Member]
|
Dec. 30, 2011
PDDA [Member]
|
Dec. 30, 2011
PDDA [Member]
Customer Relationships [Member]
years
|
Dec. 30, 2011
PDDA [Member]
Noncompete Agreements [Member]
years
|
Dec. 29, 2010
TransWeb [Member]
|
Jun. 02, 2012
TransWeb [Member]
|
May 28, 2011
TransWeb [Member]
|
Jun. 02, 2012
TransWeb [Member]
|
May 28, 2011
TransWeb [Member]
|
|
Business Acquisition [Line Items] | |||||||||||||||||
Business Acquisition, Effective Date of Acquisition | 5/9/2012 | 12/30/2011 | 12/29/2010 | ||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | 100.00% | |||||||||||||||
Business Acquisition, Name of Acquired Entity | Modular Engineering Company Pty Ltd. | PDDA Filtration, Inc. | TransWeb LLC | ||||||||||||||
Business Acquisition, Base Purchase Price Excluding Cash Acquired | $ 7,875 | $ 30,017 | |||||||||||||||
Business Acquisition, Cost of Acquired Entity, Purchase Price | 530 | ||||||||||||||||
Payments to Acquire Businesses, Gross | 5,237 | ||||||||||||||||
Business Acquisition, Purchase Price Withheld | 17,000 | ||||||||||||||||
Business Acquisition, Description of Acquired Entity | a manufacturer of pressure vessels, process and storage tanks and other natural gas filtration products and distributor of aftermarket elements | privately-held provider of filtration solutions | a privately-owned manufacturer of media used in a variety of end-use applications, including respirators and heating, ventilation and air conditioning ("HVAC") filters | ||||||||||||||
Business Combination, Reason for Business Combination | acquisition of Modular gives the Company first-fit manufacturing capabilities in Western Australia, as well as a platform for aftermarket growth throughout the region | PDDA specializes in liquid process filtration products, serving customers in diverse industries including chemical processing, food and beverage, oil and gas, power generation, water, wine and biofuel production | to expand the Company’s technology capabilities in the area of media development and to enhance the product offerings of the Company's filtration operating companies | ||||||||||||||
Net sales | 284,855 | 288,533 | 542,119 | 534,253 | 2,859 | 2,518 | 5,765 | 4,893 | |||||||||
Operating profit | 49,111 | 48,780 | 83,423 | 80,071 | 237 | 140 | 513 | 474 | |||||||||
Business Acquisition, Transaction Costs | 250 | ||||||||||||||||
TransWeb contingent earn-out, included in Other long-term liabilities | 1,220 | 1,220 | 1,123 | 1,220 | 1,123 | 1,018 | |||||||||||
TransWeb contingent earn-out, Contingent Consideration, Accounting Treatment | The contingent liability for the earn-out payment will continue to be accounted for and measured at fair value until the contingency is settled | ||||||||||||||||
TransWeb contingent earn-out, Contingent Consideration, Settlement Date | Nov. 30, 2016 | ||||||||||||||||
Acquired Finite-lived Intangible Asset, Amount | 400 | 50 | |||||||||||||||
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life | 5 | 3 | |||||||||||||||
Business Acquisition, Purchase Price Allocation, Current Assets, Inventory | 80 | ||||||||||||||||
Business Acquisition, Purchase Price Allocation, Goodwill Amount | 5,339 | ||||||||||||||||
Business Acquisition, Purchase Price Allocation, Amortizable Intangible Assets | 2,552 | ||||||||||||||||
Business Acquisition, Purchase Price Allocation, Current Liabilities | $ (200) |
CONTINGENCIES (Details 1) (USD $)
In Thousands, unless otherwise specified |
0 Months Ended | 3 Months Ended | 6 Months Ended | 18 Months Ended | 0 Months Ended | ||
---|---|---|---|---|---|---|---|
Dec. 29, 2010
TransWeb [Member]
|
Jun. 02, 2012
TransWeb [Member]
|
Jun. 02, 2012
TransWeb [Member]
|
Jun. 02, 2012
TransWeb [Member]
|
Jun. 02, 2012
TransWeb [Member]
Purchase Price Withheld Remaining Current [Member]
|
Feb. 01, 2012
Legal Contingnecy - Donaldson [Member]
|
Oct. 07, 2011
Legal Contingency - Antitrust [Member]
|
|
Business Acquisition, Purchase Price Withheld Disclosures [Line Items] | |||||||
Litigation Settlement, Gross | $ 511 | $ 625 | |||||
Business Acquisition, Effective Date of Acquisition | 12/29/2010 | ||||||
Business Acquisition, Purchase Price Withheld | 17,000 | ||||||
Business Acquisition, Legal Charges Applied Against Purchase Price Withheld | 2,942 | 4,407 | 10,735 | ||||
Business Acquisition, Purchase Price Withheld Remaining Balance | $ 6,265 |
GOODWILL AND ACQUIRED INTANGIBLE ASSETS (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 02, 2012
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill [Table Text Block] | The following table reconciles the activity for goodwill by segment for the six months ended June 2, 2012.
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Schedule of Intangible Assets by Segment [Table Text Block] | The following table summarizes acquired intangibles by segment. Other acquired intangibles include parts manufacturer regulatory approvals, developed technology, patents and non-compete agreements.
|
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Schedule of Expected Amortization Expense [Table Text Block] | The following table summarizes estimated amortization expense.
|
ACCOUNTS PAYABLE, ACCRUED LIABILITIES AND GUARANTEES (Details 1) (USD $)
In Thousands, unless otherwise specified |
Jun. 02, 2012
|
Dec. 03, 2011
|
---|---|---|
Accounts Payable and Accrued Liabilities [Line Items] | ||
Accounts payable | $ 64,831 | $ 64,701 |
Accrued salaries, wages and commissions | 11,370 | 24,760 |
Compensated absences | 8,717 | 8,530 |
Accrued insurance liabilities | 8,319 | 9,017 |
Customer deposits | 13,312 | 8,727 |
Other accrued liabilities | 36,061 | 39,850 |
Accounts payable and accrued liabilities | 142,610 | 155,585 |
Letters of Credit Outstanding, Amount | $ 25,166 | $ 25,623 |
INCENTIVE PLANS AND STOCK-BASED COMPENSATION (Details 6) (USD $)
|
6 Months Ended |
---|---|
Jun. 02, 2012
|
|
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |
Nonvested at beginning of year | 71,545 |
Granted | 29,839 |
Vested | (27,710) |
Nonvested at end of period | 73,674 |
Weighted Average Grant Date Fair Value - Restricted Stock Unit Awards [Roll Forward] | |
Weighted Average Grant Date Fair Value - Beginning of Year | $ 36.95 |
Weighted Average Grant Date Fair Value - Granted | $ 49.91 |
Weighted Average Grant Date Fair Value - Vested | $ 35.99 |
Weighted Average Grant Date Fair Value - End of Period | $ 42.56 |
LONG-TERM DEBT (Details 1) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | 0 Months Ended | 6 Months Ended | 0 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 02, 2012
|
May 28, 2011
|
Dec. 03, 2011
|
Apr. 05, 2012
Credit Facility 2012 [Member]
|
Jun. 02, 2012
Credit Facility 2012 [Member]
|
Apr. 05, 2012
Credit Facility 2012 [Member]
Credit Facility - Swing Line [Member]
|
Apr. 05, 2012
Credit Facility 2012 [Member]
Credit Facility - Accordion [Member]
|
Jun. 02, 2012
Credit Facility 2012 [Member]
Letter of Credit Sub-Facility [Member]
|
Apr. 05, 2012
Credit Facility 2012 [Member]
Letter of Credit Sub-Facility [Member]
|
Dec. 18, 2007
Credit Facility 2007 [Member]
|
Mar. 03, 2012
Credit Facility 2007 [Member]
|
|
Line of Credit Facility [Line Items] | |||||||||||
Line of Credit Facility, Initiation Date | 4/5/2012 | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 150,000 | $ 10,000 | $ 100,000 | $ 250,000 | |||||||
Line of Credit Facility, Expiration Date | 12/18/2012 | ||||||||||
Line of Credit Facility, Description | five-year multicurrency revolving credit agreement (“Credit Facility”) with a group of financial institutions | ||||||||||
Line of Credit Facility, Interest Rate Description | the Credit Facility bear interest at either (1) a defined base rate, which varies with the highest of the defined prime rate, the federal funds rate, or a specified margin over the one-month London Interbank Offered Rate (“LIBOR”), or (2) LIBOR plus an applicable margin. Swing line loans bear interest at the defined base rate plus an applicable margin | ||||||||||
Line of Credit Facility, Commitment Fee Description | Commitment fees and letter of credit fees are also payable under the Credit Facility | ||||||||||
Line of Credit Facility, Amount Outstanding | 0 | ||||||||||
Sub-Facility Letters of Credit Maximum Capacity | 50,000 | ||||||||||
Letters of Credit Outstanding, Amount | 25,166 | 25,623 | 16,012 | ||||||||
Payments of Financing Costs | $ 564 | $ 0 | $ 564 |
SEGMENT INFORMATION (Details 1) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 02, 2012
|
May 28, 2011
|
Jun. 02, 2012
segments
|
May 28, 2011
|
Dec. 03, 2011
|
|
Segment Reporting Information [Line Items] | |||||
Number of segments | 3 | ||||
Net sales | $ 284,855 | $ 288,533 | $ 542,119 | $ 534,253 | |
Operating profit | 49,111 | 48,780 | 83,423 | 80,071 | |
Other income (expense), net | (36) | (210) | 610 | (417) | |
Earnings before income taxes | 49,075 | 48,570 | 84,033 | 79,654 | |
Identifiable assets | 1,142,860 | 1,142,860 | 1,134,933 | ||
Engine Mobile Filtration [Member]
|
|||||
Segment Reporting Information [Line Items] | |||||
Net sales | 130,677 | 131,276 | 250,960 | 242,604 | |
Operating profit | 29,628 | 29,592 | 52,925 | 50,794 | |
Identifiable assets | 356,869 | 356,869 | 338,197 | ||
Industrial Environmental Filtration [Member]
|
|||||
Segment Reporting Information [Line Items] | |||||
Net sales | 134,629 | 133,499 | 255,743 | 245,618 | |
Operating profit | 17,747 | 16,179 | 28,452 | 23,427 | |
Identifiable assets | 695,353 | 695,353 | 693,266 | ||
Packaging [Member]
|
|||||
Segment Reporting Information [Line Items] | |||||
Net sales | 19,549 | 23,758 | 35,416 | 46,031 | |
Operating profit | 1,736 | 3,009 | 2,046 | 5,850 | |
Identifiable assets | 38,336 | 38,336 | 39,571 | ||
Corporate [Member]
|
|||||
Segment Reporting Information [Line Items] | |||||
Identifiable assets | $ 52,302 | $ 52,302 | $ 63,899 |
GOODWILL AND ACQUIRED INTANGIBLE ASSETS (Details 3) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended |
---|---|
Jun. 02, 2012
|
|
Expected Amortization [Line Items] | |
Fiscal year 2011 | $ 5,874 |
Fiscal year 2012 | 5,883 |
Fiscal year 2013 | 5,681 |
Fiscal year 2014 | 5,626 |
Fiscal year 2015 | $ 5,486 |
COMPREHENSIVE EARNINGS (Note)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 02, 2012
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Statement of Income and Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMPREHENSIVE EARNINGS | COMPREHENSIVE EARNINGS Total comprehensive earnings (loss) and its components are as follows:
The components of the ending balances of Accumulated other comprehensive loss are as follows:
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