Form 10-Q |
ý | 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 |
Lancaster Colony Corporation | ||
(Exact name of registrant as specified in its charter) | ||
Ohio | 13-1955943 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
37 West Broad Street Columbus, Ohio | 43215 | |
(Address of principal executive offices) | (Zip Code) |
614-224-7141 |
(Registrant’s telephone number, including area code) |
Large Accelerated filer | ý | Accelerated filer | ¨ | ||
Non-accelerated filer | o (Do not check if a smaller reporting company) | Smaller Reporting Company | ¨ |
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1A. | ||
Item 2. | ||
Item 6. | ||
Item 1. | Condensed Consolidated Financial Statements |
(Amounts in thousands, except share data) | September 30, 2013 | June 30, 2013 | |||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and equivalents | $ | 133,075 | $ | 123,386 | |||
Receivables (less allowance for doubtful accounts, September-$952; June-$822) | 82,890 | 70,398 | |||||
Inventories: | |||||||
Raw materials | 34,616 | 35,012 | |||||
Finished goods and work in process | 78,431 | 74,139 | |||||
Total inventories | 113,047 | 109,151 | |||||
Deferred income taxes and other current assets | 18,360 | 23,123 | |||||
Total current assets | 347,372 | 326,058 | |||||
Property, Plant and Equipment: | |||||||
Land, buildings and improvements | 144,494 | 144,206 | |||||
Machinery and equipment | 290,557 | 289,051 | |||||
Total cost | 435,051 | 433,257 | |||||
Less accumulated depreciation | 248,054 | 243,562 | |||||
Property, plant and equipment-net | 186,997 | 189,695 | |||||
Other Assets: | |||||||
Goodwill | 89,840 | 89,840 | |||||
Other intangible assets-net | 6,086 | 6,322 | |||||
Other noncurrent assets | 8,185 | 8,049 | |||||
Total | $ | 638,480 | $ | 619,964 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current Liabilities: | |||||||
Accounts payable | $ | 41,772 | $ | 41,890 | |||
Accrued liabilities | 41,789 | 35,287 | |||||
Total current liabilities | 83,561 | 77,177 | |||||
Other Noncurrent Liabilities | 23,495 | 23,291 | |||||
Deferred Income Taxes | 18,558 | 18,274 | |||||
Shareholders’ Equity: | |||||||
Preferred stock-authorized 3,050,000 shares; outstanding-none | |||||||
Common stock-authorized 75,000,000 shares; outstanding – September-27,284,284 shares; June-27,323,721 shares | 103,282 | 102,622 | |||||
Retained earnings | 1,153,087 | 1,139,213 | |||||
Accumulated other comprehensive loss | (8,324 | ) | (8,391 | ) | |||
Common stock in treasury, at cost | (735,179 | ) | (732,222 | ) | |||
Total shareholders’ equity | 512,866 | 501,222 | |||||
Total | $ | 638,480 | $ | 619,964 |
Three Months Ended September 30, | ||||||||
(Amounts in thousands, except per share data) | 2013 | 2012 | ||||||
Net Sales | $ | 285,856 | $ | 290,976 | ||||
Cost of Sales | 224,218 | 225,259 | ||||||
Gross Margin | 61,638 | 65,717 | ||||||
Selling, General and Administrative Expenses | 24,038 | 25,145 | ||||||
Operating Income | 37,600 | 40,572 | ||||||
Interest Income and Other-Net | (48 | ) | 14 | |||||
Income Before Income Taxes | 37,552 | 40,586 | ||||||
Taxes Based on Income | 12,751 | 13,924 | ||||||
Net Income | $ | 24,801 | $ | 26,662 | ||||
Net Income Per Common Share: | ||||||||
Basic and Diluted | $ | 0.91 | $ | 0.98 | ||||
Cash Dividends Per Common Share | $ | 0.40 | $ | 0.36 | ||||
Weighted Average Common Shares Outstanding: | ||||||||
Basic | 27,268 | 27,229 | ||||||
Diluted | 27,312 | 27,264 |
Three Months Ended September 30, | |||||||
(Amounts in thousands) | 2013 | 2012 | |||||
Net Income | $ | 24,801 | $ | 26,662 | |||
Other Comprehensive Income: | |||||||
Defined Benefit Pension and Postretirement Benefit Plans: | |||||||
Amortization of loss, before tax | 108 | 167 | |||||
Amortization of prior service asset, before tax | (1 | ) | (1 | ) | |||
Total Other Comprehensive Income, Before Tax | 107 | 166 | |||||
Tax Attributes of Items in Other Comprehensive Income: | |||||||
Amortization of loss, tax | (40 | ) | (62 | ) | |||
Amortization of prior service asset, tax | — | — | |||||
Total Tax Expense | (40 | ) | (62 | ) | |||
Other Comprehensive Income, Net of Tax | 67 | 104 | |||||
Comprehensive Income | $ | 24,868 | $ | 26,766 |
Three Months Ended September 30, | |||||||
(Amounts in thousands) | 2013 | 2012 | |||||
Cash Flows From Operating Activities: | |||||||
Net income | $ | 24,801 | $ | 26,662 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 5,273 | 4,964 | |||||
Deferred income taxes and other noncash changes | (932 | ) | (1,466 | ) | |||
Stock-based compensation expense | 647 | 871 | |||||
Gain on sale of property | (6 | ) | (1 | ) | |||
Pension plan activity | (61 | ) | (15 | ) | |||
Changes in operating assets and liabilities: | |||||||
Receivables | (12,626 | ) | (23,260 | ) | |||
Inventories | (3,896 | ) | (11,026 | ) | |||
Other current assets | 6,563 | 727 | |||||
Accounts payable and accrued liabilities | 6,768 | 18,902 | |||||
Net cash provided by operating activities | 26,531 | 16,358 | |||||
Cash Flows From Investing Activities: | |||||||
Payments on property additions | (2,120 | ) | (5,434 | ) | |||
Proceeds from sale of property | 6 | 1 | |||||
Other-net | (528 | ) | (302 | ) | |||
Net cash used in investing activities | (2,642 | ) | (5,735 | ) | |||
Cash Flows From Financing Activities: | |||||||
Purchase of treasury stock | (2,957 | ) | — | ||||
Payment of dividends | (10,927 | ) | (9,825 | ) | |||
Excess tax benefit from stock-based compensation | 8 | 242 | |||||
Decrease in cash overdraft balance | (324 | ) | — | ||||
Net cash used in financing activities | (14,200 | ) | (9,583 | ) | |||
Net change in cash and equivalents | 9,689 | 1,040 | |||||
Cash and equivalents at beginning of year | 123,386 | 191,636 | |||||
Cash and equivalents at end of period | $ | 133,075 | $ | 192,676 | |||
Supplemental Disclosure of Operating Cash Flows: | |||||||
Cash paid during the period for income taxes | $ | 643 | $ | 390 |
September 30, | |||||||
2013 | 2012 | ||||||
Construction in progress in accounts payable | $ | 292 | $ | 721 |
Three Months Ended September 30, | |||||||
2013 | 2012 | ||||||
Net income | $ | 24,801 | $ | 26,662 | |||
Net income available to participating securities | (34 | ) | (53 | ) | |||
Net income available to common shareholders | $ | 24,767 | $ | 26,609 | |||
Weighted average common shares outstanding – basic | 27,268 | 27,229 | |||||
Incremental share effect from: | |||||||
Nonparticipating restricted stock | 5 | 5 | |||||
Stock-settled stock appreciation rights | 39 | 30 | |||||
Weighted average common shares outstanding – diluted | 27,312 | 27,264 | |||||
Net income per common share – basic and diluted | $ | 0.91 | $ | 0.98 |
Three Months Ended September 30, | |||||||
2013 | 2012 | ||||||
Accumulated other comprehensive loss at beginning of period | $ | (8,391 | ) | $ | (12,162 | ) | |
Defined Benefit Pension Plan Items: | |||||||
Amortization of unrecognized net loss (1) | 115 | 172 | |||||
Postretirement Benefit Plan Items: | |||||||
Amortization of unrecognized net gain (1) | (7 | ) | (5 | ) | |||
Amortization of prior service asset (1) | (1 | ) | (1 | ) | |||
Total other comprehensive income, before tax | 107 | 166 | |||||
Total tax expense | (40 | ) | (62 | ) | |||
Other comprehensive income, net of tax | 67 | 104 | |||||
Accumulated other comprehensive loss at end of period | $ | (8,324 | ) | $ | (12,058 | ) |
September 30, 2013 | June 30, 2013 | ||||||
Trademarks (40-year life) | |||||||
Gross carrying value | $ | 370 | $ | 370 | |||
Accumulated amortization | (207 | ) | (205 | ) | |||
Net carrying value | $ | 163 | $ | 165 | |||
Customer Relationships (12 to 15-year life) | |||||||
Gross carrying value | $ | 13,020 | $ | 13,020 | |||
Accumulated amortization | (7,097 | ) | (6,863 | ) | |||
Net carrying value | $ | 5,923 | $ | 6,157 | |||
Total net carrying value | $ | 6,086 | $ | 6,322 |
Three Months Ended September 30, | |||||||
2013 | 2012 | ||||||
Amortization expense | $ | 236 | $ | 236 |
2015 | $ | 946 | |
2016 | $ | 775 | |
2017 | $ | 604 | |
2018 | $ | 604 | |
2019 | $ | 604 |
2014 | |||
SSSARs granted | 2 | ||
Weighted average grant date fair value per right | $ | 10.14 | |
Assumptions used in fair value calculations: | |||
Risk-free interest rate | 0.61 | % | |
Dividend yield | 2.01 | % | |
Volatility factor of the expected market price of our common stock | 23.00 | % | |
Weighted average expected life in years | 2.68 | ||
Estimated forfeiture rate | — | % |
Three Months Ended September 30, | |||||||
2013 | 2012 | ||||||
Compensation expense | $ | 307 | $ | 461 | |||
Tax benefits | $ | 107 | $ | 161 | |||
Intrinsic value of exercises | $ | 18 | $ | 690 | |||
Gross windfall tax benefits | $ | 6 | $ | 241 |
Number of Rights | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life in Years | Aggregate Intrinsic Value | |||||||||
Outstanding at beginning of period | 374 | $ | 66.42 | |||||||||
Exercised | (2 | ) | $ | 61.80 | ||||||||
Granted | 2 | $ | 79.78 | |||||||||
Forfeited | — | $ | — | |||||||||
Outstanding at end of period | 374 | $ | 66.51 | 3.27 | $ | 4,408 | ||||||
Exercisable and vested at end of period | 110 | $ | 60.87 | 2.21 | $ | 1,910 | ||||||
Vested and expected to vest at end of period | 365 | $ | 66.51 | 3.27 | $ | 4,302 |
Three Months Ended September 30, | |||||||
2013 | 2012 | ||||||
Compensation expense | $ | 340 | $ | 410 | |||
Tax benefits | $ | 119 | $ | 144 | |||
Gross windfall tax benefits | $ | 2 | $ | 1 |
Number of Shares | Weighted Average Grant Date Fair Value | |||||
Unvested restricted stock at beginning of period | 45 | $ | 68.16 | |||
Granted | — | $ | — | |||
Vested | — | $ | — | |||
Forfeited | — | $ | — | |||
Unvested restricted stock at end of period | 45 | $ | 68.21 |
Three Months Ended September 30, | |||||||
2013 | 2012 | ||||||
Components of net periodic benefit income | |||||||
Interest cost | $ | 438 | $ | 408 | |||
Expected return on plan assets | (614 | ) | (595 | ) | |||
Amortization of unrecognized net loss | 115 | 172 | |||||
Net periodic benefit income | $ | (61 | ) | $ | (15 | ) |
Three Months Ended September 30, | |||||||
2013 | 2012 | ||||||
Components of net periodic benefit cost | |||||||
Service cost | $ | 8 | $ | 8 | |||
Interest cost | 32 | 28 | |||||
Amortization of unrecognized net gain | (7 | ) | (5 | ) | |||
Amortization of prior service asset | (1 | ) | (1 | ) | |||
Net periodic benefit cost | $ | 32 | $ | 30 |
Three Months Ended September 30, | |||||||
2013 | 2012 | ||||||
Net Sales | |||||||
Specialty Foods | $ | 248,137 | $ | 248,881 | |||
Glassware and Candles | 37,719 | 42,095 | |||||
Total | $ | 285,856 | $ | 290,976 | |||
Operating Income | |||||||
Specialty Foods | $ | 39,543 | $ | 42,758 | |||
Glassware and Candles | 1,169 | 608 | |||||
Corporate Expenses | (3,112 | ) | (2,794 | ) | |||
Total | $ | 37,600 | $ | 40,572 |
• | leading retail market positions in several branded products with a high-quality perception; |
• | a broad customer base in both retail and foodservice accounts; |
• | well-regarded culinary expertise among foodservice accounts; |
• | recognized leadership in foodservice product development; |
• | experience in integrating complementary business acquisitions; and |
• | historically strong cash flow generation that supports growth opportunities. |
• | leveraging the strength of our retail brands to increase current product sales, introduce new products and expand to new channels; |
• | growing our foodservice sales through the strength of our reputation in product development and quality; and |
• | pursuing acquisitions that meet our strategic criteria. |
Three Months Ended September 30, | ||||||||||||||
(Dollars in thousands) | 2013 | 2012 | Change | |||||||||||
Net Sales | ||||||||||||||
Specialty Foods | $ | 248,137 | $ | 248,881 | $ | (744 | ) | — | % | |||||
Glassware and Candles | 37,719 | 42,095 | (4,376 | ) | (10 | )% | ||||||||
Total | $ | 285,856 | $ | 290,976 | $ | (5,120 | ) | (2 | )% | |||||
Gross Margin | $ | 61,638 | $ | 65,717 | $ | (4,079 | ) | (6 | )% | |||||
Gross Margin as a Percentage of Net Sales | 21.6 | % | 22.6 | % |
Three Months Ended September 30, | ||||||||||||||
(Dollars in thousands) | 2013 | 2012 | Change | |||||||||||
SG&A Expenses | $ | 24,038 | $ | 25,145 | $ | (1,107 | ) | (4 | )% | |||||
SG&A Expenses as a Percentage of Net Sales | 8.4 | % | 8.6 | % |
Three Months Ended September 30, | ||||||||||||||
(Dollars in thousands) | 2013 | 2012 | Change | |||||||||||
Operating Income | ||||||||||||||
Specialty Foods | $ | 39,543 | $ | 42,758 | $ | (3,215 | ) | (8 | )% | |||||
Glassware and Candles | 1,169 | 608 | 561 | 92 | % | |||||||||
Corporate Expenses | (3,112 | ) | (2,794 | ) | (318 | ) | 11 | % | ||||||
Total | $ | 37,600 | $ | 40,572 | $ | (2,972 | ) | (7 | )% | |||||
Operating Income as a Percentage of Net Sales | ||||||||||||||
Specialty Foods | 15.9 | % | 17.2 | % | ||||||||||
Glassware and Candles | 3.1 | % | 1.4 | % | ||||||||||
Total | 13.2 | % | 13.9 | % |
• | the potential for loss of larger programs or key customer relationships; |
• | the effect of consolidation of customers within key market channels; |
• | the success and cost of new product development efforts; |
• | the lack of market acceptance of new products; |
• | the reaction of customers or consumers to the effect of price increases we may implement; |
• | changes in demand for our products, which may result from loss of brand reputation or customer goodwill; |
• | the extent to which future business acquisitions are completed and acceptably integrated; |
• | the possible occurrence of product recalls or other defective or mislabeled product costs; |
• | efficiencies in plant operations, including the ability to optimize overhead utilization in candle operations; |
• | price and product competition; |
• | the uncertainty regarding the effect or outcome of any decision to explore further strategic alternatives for our nonfood operation; |
• | fluctuations in the cost and availability of raw materials; |
• | adverse changes in energy costs and other factors that may affect costs of producing, distributing or transporting our products; |
• | the impact of fluctuations in our pension plan asset values on funding levels, contributions required and benefit costs; |
• | maintenance of competitive position with respect to other manufacturers, including global sources of production; |
• | dependence on key personnel; |
• | stability of labor relations; |
• | dependence on contract copackers and limited or exclusive sources for certain goods; |
• | legislation and litigation affecting the future administration of the Continued Dumping and Subsidy Offset Act of 2000; |
• | access to any required financing; |
• | changes in estimates in critical accounting judgments; |
• | the outcome of any litigation or arbitration; and |
• | certain other factors, including the information disclosed in our discussion of risk factors under Item 1A of our 2013 Annual Report on Form 10-K. |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans | Maximum Number of Shares that May Yet be Purchased Under the Plans | ||||||||
July 1-31, 2013 | — | $ | — | — | 1,467,846 | |||||||
August 1-31, 2013 | — | $ | — | — | 1,467,846 | |||||||
September 1-30, 2013 | 40,070 | $ | 73.79 | 40,070 | 1,427,776 | |||||||
Total | 40,070 | $ | 73.79 | 40,070 | 1,427,776 |
LANCASTER COLONY CORPORATION | |||||
(Registrant) | |||||
Date: | November 7, 2013 | By: | /s/ JOHN B. GERLACH, JR. | ||
John B. Gerlach, Jr. | |||||
Chairman, Chief Executive Officer, | |||||
President and Director | |||||
(Principal Executive Officer) | |||||
Date: | November 7, 2013 | By: | /s/ JOHN L. BOYLAN | ||
John L. Boylan | |||||
Treasurer, Vice President, | |||||
Assistant Secretary, | |||||
Chief Financial Officer | |||||
and Director | |||||
(Principal Financial and Accounting Officer) |
Exhibit Number | Description | Located at | ||
31.1 | Certification of CEO under Section 302 of the Sarbanes-Oxley Act of 2002 | Filed herewith | ||
31.2 | Certification of CFO under Section 302 of the Sarbanes-Oxley Act of 2002 | Filed herewith | ||
32 | Certification of CEO and CFO under Section 906 of the Sarbanes-Oxley Act of 2002 | Filed herewith | ||
101.INS | XBRL Instance Document | Filed herewith | ||
101.SCH | XBRL Taxonomy Extension Schema Document | Filed herewith | ||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | Filed herewith | ||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | Filed herewith | ||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | Filed herewith | ||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | Filed herewith |
1. | I have reviewed this quarterly report on Form 10-Q of Lancaster Colony Corporation; |
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(s) 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(s) 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 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: | November 7, 2013 | By: | /s/ JOHN B. GERLACH, JR. | ||
John B. Gerlach, Jr. Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Lancaster Colony Corporation; |
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(s) 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(s) 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 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: | November 7, 2013 | By: | /s/ JOHN L. BOYLAN | ||
John L. Boylan | |||||
Chief Financial Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
By: | /s/ JOHN B. GERLACH, JR. | |
John B. Gerlach, Jr. | ||
Chief Executive Officer | ||
November 7, 2013 | ||
By: | /s/ JOHN L. BOYLAN | |
John L. Boylan | ||
Chief Financial Officer | ||
November 7, 2013 |
Summary Of Significant Accounting Policies (Policy)
|
3 Months Ended |
---|---|
Sep. 30, 2013
|
|
Accounting Policies [Abstract] | |
Basis Of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and SEC Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, the interim condensed consolidated financial statements reflect all adjustments necessary for a fair presentation of the results of operations and financial position for such periods. All such adjustments reflected in the interim condensed consolidated financial statements are considered to be of a normal recurring nature. The results of operations for any interim period are not necessarily indicative of results for the full year. Accordingly, these financial statements should be read in conjunction with the financial statements and notes thereto contained in our 2013 Annual Report on Form 10-K. Unless otherwise noted, the term “year” and references to a particular year pertain to our fiscal year, which begins on July 1 and ends on June 30; for example, 2014 refers to fiscal 2014, which is the period from July 1, 2013 to June 30, 2014. |
Property, Plant And Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation. |
Earnings Per Share | Earnings Per Share Earnings per share (“EPS”) is computed based on the weighted average number of shares of common stock and common stock equivalents (restricted stock and stock-settled stock appreciation rights) outstanding during each period. Unvested shares of restricted stock granted to employees are considered participating securities since employees receive nonforfeitable dividends prior to vesting and, therefore, are included in the earnings allocation in computing EPS under the two-class method. Basic EPS excludes dilution and is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing income available to common shareholders by the diluted weighted average number of common shares outstanding during the period, which includes the dilutive potential common shares associated with nonparticipating restricted stock and stock-settled stock appreciation rights. |
Long-Term Debt | At September 30, 2013 and June 30, 2013, we had an unsecured credit agreement under which we may borrow, on a revolving credit basis, up to a maximum of $120 million at any one time, with potential to expand the total credit availability to $200 million based on obtaining consent of the issuing banks and certain other conditions. The facility expires on April 18, 2017, and all outstanding amounts are then due and payable. Interest is variable based upon formulas tied to LIBOR or an alternative base rate defined in the credit agreement, at our option. We must also pay facility fees that are tied to our then-applicable consolidated leverage ratio. Loans may be used for general corporate purposes. Based on the long-term nature of this facility, when we have outstanding borrowings under this facility, we will classify the outstanding balance as long-term debt. |
Pension Benefits | We sponsor multiple defined benefit pension plans that have covered certain union workers. However, as a result of prior-years' restructuring activities, for all periods presented, we no longer have any active employees continuing to accrue service cost or otherwise eligible to receive plan benefits. Benefits being paid under the plans are primarily based on negotiated rates and years of service. We contribute to these plans at least the minimum amount required by regulation. |
Postretirement Benefits | We and certain of our operating subsidiaries provide multiple postretirement medical and life insurance benefit plans. We recognize the cost of benefits as the employees render service. Postretirement benefits are funded as incurred. |
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