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.) | |
380 Polaris Parkway, Suite 400 Westerville, Ohio | 43082 | |
(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 | ¨ | ||
Emerging growth company | ¨ |
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1A. | ||
Item 2. | ||
Item 6. | ||
(Amounts in thousands, except share data) | March 31, 2018 | June 30, 2017 | |||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and equivalents | $ | 187,330 | $ | 143,104 | |||
Receivables | 76,731 | 69,922 | |||||
Inventories: | |||||||
Raw materials | 34,452 | 28,447 | |||||
Finished goods | 53,662 | 47,929 | |||||
Total inventories | 88,114 | 76,376 | |||||
Other current assets | 11,840 | 11,744 | |||||
Total current assets | 364,015 | 301,146 | |||||
Property, Plant and Equipment: | |||||||
Land, buildings and improvements | 128,378 | 124,673 | |||||
Machinery and equipment | 288,351 | 272,582 | |||||
Total cost | 416,729 | 397,255 | |||||
Less accumulated depreciation | 229,316 | 216,584 | |||||
Property, plant and equipment-net | 187,413 | 180,671 | |||||
Other Assets: | |||||||
Goodwill | 168,030 | 168,030 | |||||
Other intangible assets-net | 57,182 | 60,162 | |||||
Other noncurrent assets | 9,925 | 6,396 | |||||
Total | $ | 786,565 | $ | 716,405 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current Liabilities: | |||||||
Accounts payable | $ | 58,187 | $ | 41,353 | |||
Accrued liabilities | 36,329 | 35,270 | |||||
Total current liabilities | 94,516 | 76,623 | |||||
Other Noncurrent Liabilities | 43,446 | 38,598 | |||||
Deferred Income Taxes | 15,740 | 25,207 | |||||
Commitments and Contingencies | |||||||
Shareholders’ Equity: | |||||||
Preferred stock-authorized 3,050,000 shares; outstanding-none | |||||||
Common stock-authorized 75,000,000 shares; outstanding-March-27,478,232 shares; June-27,448,424 shares | 118,106 | 115,174 | |||||
Retained earnings | 1,263,443 | 1,206,671 | |||||
Accumulated other comprehensive loss | (10,652 | ) | (8,936 | ) | |||
Common stock in treasury, at cost | (738,034 | ) | (736,932 | ) | |||
Total shareholders’ equity | 632,863 | 575,977 | |||||
Total | $ | 786,565 | $ | 716,405 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||
(Amounts in thousands, except per share data) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Net Sales | $ | 296,174 | $ | 293,834 | $ | 914,755 | $ | 911,968 | |||||||
Cost of Sales | 228,261 | 221,929 | 687,424 | 665,690 | |||||||||||
Gross Profit | 67,913 | 71,905 | 227,331 | 246,278 | |||||||||||
Selling, General and Administrative Expenses | 30,248 | 32,253 | 98,075 | 96,514 | |||||||||||
Multiemployer Pension Settlement and Related Costs | — | 17,639 | — | 17,639 | |||||||||||
Operating Income | 37,665 | 22,013 | 129,256 | 132,125 | |||||||||||
Other, Net | 375 | 144 | 1,145 | 437 | |||||||||||
Income Before Income Taxes | 38,040 | 22,157 | 130,401 | 132,562 | |||||||||||
Taxes Based on Income | 10,419 | 7,686 | 27,474 | 45,735 | |||||||||||
Net Income | $ | 27,621 | $ | 14,471 | $ | 102,927 | $ | 86,827 | |||||||
Net Income Per Common Share: | |||||||||||||||
Basic | $ | 1.01 | $ | 0.53 | $ | 3.75 | $ | 3.17 | |||||||
Diluted | $ | 1.00 | $ | 0.53 | $ | 3.74 | $ | 3.16 | |||||||
Cash Dividends Per Common Share | $ | 0.60 | $ | 0.55 | $ | 1.75 | $ | 1.60 | |||||||
Weighted Average Common Shares Outstanding: | |||||||||||||||
Basic | 27,405 | 27,379 | 27,399 | 27,369 | |||||||||||
Diluted | 27,458 | 27,442 | 27,456 | 27,438 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||
(Amounts in thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Net Income | $ | 27,621 | $ | 14,471 | $ | 102,927 | $ | 86,827 | |||||||
Other Comprehensive Income: | |||||||||||||||
Defined Benefit Pension and Postretirement Benefit Plans: | |||||||||||||||
Amortization of loss, before tax | 134 | 170 | 402 | 508 | |||||||||||
Amortization of prior service credit, before tax | (45 | ) | (46 | ) | (136 | ) | (136 | ) | |||||||
Total Other Comprehensive Income, Before Tax | 89 | 124 | 266 | 372 | |||||||||||
Tax Attributes of Items in Other Comprehensive Income: | |||||||||||||||
Amortization of loss, tax | (41 | ) | (63 | ) | (140 | ) | (188 | ) | |||||||
Amortization of prior service credit, tax | 14 | 17 | 47 | 50 | |||||||||||
Total Tax Expense | (27 | ) | (46 | ) | (93 | ) | (138 | ) | |||||||
Other Comprehensive Income, Net of Tax | 62 | 78 | 173 | 234 | |||||||||||
Comprehensive Income | $ | 27,683 | $ | 14,549 | $ | 103,100 | $ | 87,061 |
Nine Months Ended March 31, | |||||||
(Amounts in thousands) | 2018 | 2017 | |||||
Cash Flows From Operating Activities: | |||||||
Net income | $ | 102,927 | $ | 86,827 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Impacts of noncash items: | |||||||
Depreciation and amortization | 19,899 | 18,350 | |||||
Change in acquisition-related contingent consideration | 1,514 | 682 | |||||
Deferred income taxes and other changes | (8,633 | ) | (3,576 | ) | |||
Stock-based compensation expense | 3,484 | 3,110 | |||||
Pension plan activity | (362 | ) | (183 | ) | |||
Changes in operating assets and liabilities: | |||||||
Receivables | (6,828 | ) | (6,934 | ) | |||
Inventories | (11,738 | ) | (3,107 | ) | |||
Other current assets | (303 | ) | (6,527 | ) | |||
Accounts payable and accrued liabilities | 16,879 | 18,569 | |||||
Net cash provided by operating activities | 116,839 | 107,211 | |||||
Cash Flows From Investing Activities: | |||||||
Cash paid for acquisitions, net of cash acquired | (318 | ) | (34,997 | ) | |||
Payments for property additions | (22,561 | ) | (20,059 | ) | |||
Other-net | (36 | ) | 88 | ||||
Net cash used in investing activities | (22,915 | ) | (54,968 | ) | |||
Cash Flows From Financing Activities: | |||||||
Payment of dividends | (48,044 | ) | (43,886 | ) | |||
Purchase of treasury stock | (1,102 | ) | (866 | ) | |||
Tax withholdings for stock-based compensation | (552 | ) | (820 | ) | |||
Net cash used in financing activities | (49,698 | ) | (45,572 | ) | |||
Net change in cash and equivalents | 44,226 | 6,671 | |||||
Cash and equivalents at beginning of year | 143,104 | 118,080 | |||||
Cash and equivalents at end of period | $ | 187,330 | $ | 124,751 | |||
Supplemental Disclosure of Operating Cash Flows: | |||||||
Net cash payments for income taxes | $ | 37,196 | $ | 55,913 |
March 31, | |||||||
2018 | 2017 | ||||||
Construction in progress in Accounts Payable | $ | 1,279 | $ | 1,887 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income | $ | 27,621 | $ | 14,471 | $ | 102,927 | $ | 86,827 | |||||||
Net income available to participating securities | (58 | ) | (23 | ) | (206 | ) | (149 | ) | |||||||
Net income available to common shareholders | $ | 27,563 | $ | 14,448 | $ | 102,721 | $ | 86,678 | |||||||
Weighted average common shares outstanding – basic | 27,405 | 27,379 | 27,399 | 27,369 | |||||||||||
Incremental share effect from: | |||||||||||||||
Nonparticipating restricted stock | 2 | 1 | 3 | 3 | |||||||||||
Stock-settled stock appreciation rights | 51 | 62 | 54 | 66 | |||||||||||
Weighted average common shares outstanding – diluted | 27,458 | 27,442 | 27,456 | 27,438 | |||||||||||
Net income per common share – basic | $ | 1.01 | $ | 0.53 | $ | 3.75 | $ | 3.17 | |||||||
Net income per common share – diluted | $ | 1.00 | $ | 0.53 | $ | 3.74 | $ | 3.16 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Accumulated other comprehensive loss at beginning of period | $ | (8,825 | ) | $ | (11,194 | ) | $ | (8,936 | ) | $ | (11,350 | ) | |||
Defined Benefit Pension Plan Items: | |||||||||||||||
Amortization of unrecognized net loss | 143 | 179 | 429 | 536 | |||||||||||
Postretirement Benefit Plan Items: | |||||||||||||||
Amortization of unrecognized net gain | (9 | ) | (9 | ) | (27 | ) | (28 | ) | |||||||
Amortization of prior service credit | (45 | ) | (46 | ) | (136 | ) | (136 | ) | |||||||
Total other comprehensive income, before tax | 89 | 124 | 266 | 372 | |||||||||||
Total tax expense | (27 | ) | (46 | ) | (93 | ) | (138 | ) | |||||||
Other comprehensive income, net of tax | 62 | 78 | 173 | 234 | |||||||||||
Tax Cuts and Jobs Act of 2017, Reclassification from accumulated other comprehensive loss to retained earnings (1) | (1,889 | ) | — | (1,889 | ) | — | |||||||||
Accumulated other comprehensive loss at end of period | $ | (10,652 | ) | $ | (11,116 | ) | $ | (10,652 | ) | $ | (11,116 | ) |
Fair Value Measurements at March 31, 2018 | ||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||
Acquisition-related contingent consideration | $ | — | $ | — | $ | 16,542 | $ | 16,542 | ||||
Fair Value Measurements at June 30, 2017 | ||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||
Acquisition-related contingent consideration | $ | — | $ | — | $ | 15,028 | $ | 15,028 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Acquisition-related contingent consideration at beginning of period | $ | 16,021 | $ | 14,096 | $ | 15,028 | $ | — | |||||||
Additions | — | — | — | 13,872 | |||||||||||
Changes in fair value included in Selling, General and Administrative Expenses | 521 | 458 | 1,514 | 682 | |||||||||||
Acquisition-related contingent consideration at end of period | $ | 16,542 | $ | 14,554 | $ | 16,542 | $ | 14,554 |
March 31, 2018 | June 30, 2017 | ||||||
Tradenames (20 to 30-year life) | |||||||
Gross carrying value | $ | 50,321 | $ | 50,321 | |||
Accumulated amortization | (4,586 | ) | (3,130 | ) | |||
Net carrying value | $ | 45,735 | $ | 47,191 | |||
Trademarks (27-year life) | |||||||
Gross carrying value | $ | 370 | $ | 370 | |||
Accumulated amortization | (328 | ) | (241 | ) | |||
Net carrying value | $ | 42 | $ | 129 | |||
Customer Relationships (10 to 15-year life) | |||||||
Gross carrying value | $ | 14,207 | $ | 14,207 | |||
Accumulated amortization | (8,002 | ) | (7,160 | ) | |||
Net carrying value | $ | 6,205 | $ | 7,047 | |||
Technology / Know-how (10-year life) | |||||||
Gross carrying value | $ | 6,350 | $ | 6,350 | |||
Accumulated amortization | (1,523 | ) | (1,047 | ) | |||
Net carrying value | $ | 4,827 | $ | 5,303 | |||
Non-compete Agreements (5-year life) | |||||||
Gross carrying value | $ | 791 | $ | 791 | |||
Accumulated amortization | (418 | ) | (299 | ) | |||
Net carrying value | $ | 373 | $ | 492 | |||
Total net carrying value | $ | 57,182 | $ | 60,162 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Amortization expense | $ | 1,007 | $ | 1,001 | $ | 2,980 | $ | 2,538 |
2019 | $ | 3,858 | |
2020 | $ | 3,823 | |
2021 | $ | 3,738 | |
2022 | $ | 3,664 | |
2023 | $ | 3,105 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net Sales | |||||||||||||||
Retail | $ | 152,011 | $ | 151,782 | $ | 493,441 | $ | 487,238 | |||||||
Foodservice | 144,163 | 142,052 | 421,314 | 424,730 | |||||||||||
Total | $ | 296,174 | $ | 293,834 | $ | 914,755 | $ | 911,968 | |||||||
Operating Income | |||||||||||||||
Retail | $ | 26,321 | $ | 29,129 | $ | 96,504 | $ | 106,840 | |||||||
Foodservice | 14,296 | 13,590 | 42,393 | 52,756 | |||||||||||
Multiemployer Pension Settlement and Related Costs | — | (17,639 | ) | — | (17,639 | ) | |||||||||
Corporate Expenses | (2,952 | ) | (3,067 | ) | (9,641 | ) | (9,832 | ) | |||||||
Total | $ | 37,665 | $ | 22,013 | $ | 129,256 | $ | 132,125 |
• | leading Retail market positions in several product categories with a high-quality perception; |
• | recognized innovation in Retail products; |
• | a broad customer base in both Retail and Foodservice accounts; |
• | well-regarded culinary expertise among Foodservice customers; |
• | 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; |
• | introducing new products and expanding distribution; and |
• | continuing to rely upon the strength of our reputation in Foodservice product development and quality. |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2018 | 2017 | Change | 2018 | 2017 | Change | |||||||||||||||||||||||
Net Sales | |||||||||||||||||||||||||||||
Retail | $ | 152,011 | $ | 151,782 | $ | 229 | — | % | $ | 493,441 | $ | 487,238 | $ | 6,203 | 1 | % | |||||||||||||
Foodservice | 144,163 | 142,052 | 2,111 | 1 | % | 421,314 | 424,730 | (3,416 | ) | (1 | )% | ||||||||||||||||||
Total | $ | 296,174 | $ | 293,834 | $ | 2,340 | 1 | % | $ | 914,755 | $ | 911,968 | $ | 2,787 | — | % | |||||||||||||
Gross Profit | $ | 67,913 | $ | 71,905 | $ | (3,992 | ) | (6 | )% | $ | 227,331 | $ | 246,278 | $ | (18,947 | ) | (8 | )% | |||||||||||
Gross Margin | 22.9 | % | 24.5 | % | 24.9 | % | 27.0 | % |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2018 | 2017 | Change | 2018 | 2017 | Change | |||||||||||||||||||||||
SG&A Expenses | $ | 30,248 | $ | 32,253 | $ | (2,005 | ) | (6 | )% | $ | 98,075 | $ | 96,514 | $ | 1,561 | 2 | % | ||||||||||||
SG&A Expenses as a Percentage of Net Sales | 10.2 | % | 11.0 | % | 10.7 | % | 10.6 | % |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2018 | 2017 | Change | 2018 | 2017 | Change | |||||||||||||||||||||||
Operating Income | |||||||||||||||||||||||||||||
Retail | $ | 26,321 | $ | 29,129 | $ | (2,808 | ) | (10 | )% | $ | 96,504 | $ | 106,840 | $ | (10,336 | ) | (10 | )% | |||||||||||
Foodservice | 14,296 | 13,590 | 706 | 5 | % | 42,393 | 52,756 | (10,363 | ) | (20 | )% | ||||||||||||||||||
Multiemployer Pension Settlement and Related Costs | — | (17,639 | ) | 17,639 | (100 | )% | — | (17,639 | ) | 17,639 | (100 | )% | |||||||||||||||||
Corporate Expenses | (2,952 | ) | (3,067 | ) | 115 | (4 | )% | (9,641 | ) | (9,832 | ) | 191 | (2 | )% | |||||||||||||||
Total | $ | 37,665 | $ | 22,013 | $ | 15,652 | 71 | % | $ | 129,256 | $ | 132,125 | $ | (2,869 | ) | (2 | )% | ||||||||||||
Operating Margin | |||||||||||||||||||||||||||||
Retail | 17.3 | % | 19.2 | % | 19.6 | % | 21.9 | % | |||||||||||||||||||||
Foodservice | 9.9 | % | 9.6 | % | 10.1 | % | 12.4 | % | |||||||||||||||||||||
Total | 12.7 | % | 7.5 | % | 14.1 | % | 14.5 | % |
(Dollars in thousands) | Three Months Ended March 31, 2018 | Nine Months Ended March 31, 2018 | |||||||||||
One-time benefit on preliminary re-measurement of net deferred tax liability | $ | (330 | ) | (0.9 | )% | $ | (9,208 | ) | (7.1 | )% | |||
Net windfall tax benefits - stock-based compensation | (209 | ) | (0.5 | )% | (389 | ) | (0.3 | )% | |||||
Federal, state and local provision | 10,958 | 28.8 | % | 37,071 | 28.5 | % | |||||||
Taxes Based on Income | $ | 10,419 | 27.4 | % | $ | 27,474 | 21.1 | % |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2018 | 2017 | Change | 2018 | 2017 | Change | |||||||||||||||||||||||
Net Sales | $ | 152,011 | $ | 151,782 | $ | 229 | — | % | $ | 493,441 | $ | 487,238 | $ | 6,203 | 1 | % | |||||||||||||
Operating Income | $ | 26,321 | $ | 29,129 | $ | (2,808 | ) | (10 | )% | $ | 96,504 | $ | 106,840 | $ | (10,336 | ) | (10 | )% | |||||||||||
Operating Margin | 17.3 | % | 19.2 | % | 19.6 | % | 21.9 | % |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2018 | 2017 | Change | 2018 | 2017 | Change | |||||||||||||||||||||||
Net Sales | $ | 144,163 | $ | 142,052 | $ | 2,111 | 1 | % | $ | 421,314 | $ | 424,730 | $ | (3,416 | ) | (1 | )% | ||||||||||||
Operating Income | $ | 14,296 | $ | 13,590 | $ | 706 | 5 | % | $ | 42,393 | $ | 52,756 | $ | (10,363 | ) | (20 | )% | ||||||||||||
Operating Margin | 9.9 | % | 9.6 | % | 10.1 | % | 12.4 | % |
• | adverse changes in freight, energy or other costs of producing, distributing or transporting our products; |
• | fluctuations in the cost and availability of ingredients and packaging; |
• | the reaction of customers or consumers to price increases we may implement; |
• | price and product competition; |
• | the impact of customer store brands on our branded retail volumes; |
• | dependence on contract manufacturers, distributors and freight transporters; |
• | capacity constraints that may affect our ability to meet demand or may increase our costs; |
• | the success and cost of new product development efforts; |
• | the lack of market acceptance of new products; |
• | dependence on key personnel and changes in key personnel; |
• | the effect of consolidation of customers within key market channels; |
• | the ability to successfully grow recently acquired businesses; |
• | 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; |
• | the potential for loss of larger programs or key customer relationships; |
• | changes in demand for our products, which may result from loss of brand reputation or customer goodwill; |
• | maintenance of competitive position with respect to other manufacturers; |
• | efficiencies in plant operations; |
• | the impact of any regulatory matters affecting our food business, including any required labeling changes and their impact on consumer demand; |
• | stability of labor relations; |
• | the outcome of any litigation or arbitration; |
• | the impact, if any, of certain contingent liabilities associated with our withdrawal from a multiemployer pension plan; |
• | the impact of fluctuations in our pension plan asset values on funding levels, contributions required and benefit costs; |
• | changes in estimates in critical accounting judgments; and |
• | certain other factors, including the information disclosed in our discussion of risk factors under Item 1A of our 2017 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 | ||||||||
January 1-31, 2018 | — | $ | — | — | 1,404,289 | |||||||
February 1-28, 2018 (1) | 2,070 | $ | 120.47 | 2,070 | 1,402,219 | |||||||
March 1-31, 2018 | — | $ | — | — | 1,402,219 | |||||||
Total | 2,070 | $ | 120.47 | 2,070 | 1,402,219 |
(1) | Represents shares that were repurchased in satisfaction of tax withholding obligations arising from the vesting of restricted stock granted to employees under the Lancaster Colony Corporation Amended and Restated 2005 Stock Plan. |
LANCASTER COLONY CORPORATION | |||||
(Registrant) | |||||
Date: | May 1, 2018 | By: | /s/ DAVID A. CIESINSKI | ||
David A. Ciesinski | |||||
President, Chief Executive Officer | |||||
and Director | |||||
(Principal Executive Officer) | |||||
Date: | May 1, 2018 | By: | /s/ DOUGLAS A. FELL | ||
Douglas A. Fell | |||||
Treasurer, Vice President, | |||||
Assistant Secretary and | |||||
Chief Financial Officer | |||||
(Principal Financial and Accounting Officer) |
Exhibit Number | Description | Located at | ||
10.1* | ||||
10.2* | ||||
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 | ||
*Indicates a management contract or compensatory plan, contract or arrangement in which any Director or any Executive Officer participates. |
Exhibit 10.1 |
LANCASTER COLONY CORPORATION | |||||
By: | |||||
Name: Matthew R. Shurte | |||||
Title: General Counsel |
Grantee Name: |
Exhibit 10.2 |
1. | Definitions. As used in this Agreement: |
3. | Exercise of SARs. |
LANCASTER COLONY CORPORATION | |||||
By: | |||||
Name: Matthew R. Shurte | |||||
Title: General Counsel |
Grantee Name: |
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: | May 1, 2018 | By: | /s/ DAVID A. CIESINSKI | ||
David A. Ciesinski | |||||
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: | May 1, 2018 | By: | /s/ DOUGLAS A. FELL | ||
Douglas A. Fell | |||||
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/ DAVID A. CIESINSKI | |
David A. Ciesinski | ||
Chief Executive Officer | ||
May 1, 2018 | ||
By: | /s/ DOUGLAS A. FELL | |
Douglas A. Fell | ||
Chief Financial Officer | ||
May 1, 2018 |
Document And Entity Information - shares |
9 Months Ended | |
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Mar. 31, 2018 |
Apr. 19, 2018 |
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Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000057515 | |
Entity Registrant Name | LANCASTER COLONY CORP | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 27,478,263 | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2018 | |
Current Fiscal Year End Date | --06-30 |
Condensed Consolidated Balance Sheets (Parenthetical) - shares |
Mar. 31, 2018 |
Jun. 30, 2017 |
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Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized | 3,050,000 | 3,050,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares outstanding | 27,478,232 | 27,448,424 |
Condensed Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Mar. 31, 2018 |
Mar. 31, 2017 |
Mar. 31, 2018 |
Mar. 31, 2017 |
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Income Statement [Abstract] | ||||
Net Sales | $ 296,174 | $ 293,834 | $ 914,755 | $ 911,968 |
Cost of Sales | 228,261 | 221,929 | 687,424 | 665,690 |
Gross Profit | 67,913 | 71,905 | 227,331 | 246,278 |
Selling, General and Administrative Expenses | 30,248 | 32,253 | 98,075 | 96,514 |
Multiemployer Pension Settlement and Related Costs | 0 | 17,639 | 0 | 17,639 |
Operating Income | 37,665 | 22,013 | 129,256 | 132,125 |
Other, Net | 375 | 144 | 1,145 | 437 |
Income Before Income Taxes | 38,040 | 22,157 | 130,401 | 132,562 |
Taxes Based on Income | 10,419 | 7,686 | 27,474 | 45,735 |
Net Income | $ 27,621 | $ 14,471 | $ 102,927 | $ 86,827 |
Net Income Per Common Share: | ||||
Basic (in dollars per share) | $ 1.01 | $ 0.53 | $ 3.75 | $ 3.17 |
Diluted (in dollars per share) | 1.00 | 0.53 | 3.74 | 3.16 |
Cash Dividends Per Common Share (in dollars per share) | $ 0.60 | $ 0.55 | $ 1.75 | $ 1.60 |
Weighted Average Common Shares Outstanding: | ||||
Basic (in shares) | 27,405 | 27,379 | 27,399 | 27,369 |
Diluted (in shares) | 27,458 | 27,442 | 27,456 | 27,438 |
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Mar. 31, 2018 |
Mar. 31, 2017 |
Mar. 31, 2018 |
Mar. 31, 2017 |
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Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 27,621 | $ 14,471 | $ 102,927 | $ 86,827 |
Defined Benefit Pension and Postretirement Benefit Plans: | ||||
Amortization of loss, before tax | 134 | 170 | 402 | 508 |
Amortization of prior service credit, before tax | (45) | (46) | (136) | (136) |
Total Other Comprehensive Income, Before Tax | 89 | 124 | 266 | 372 |
Tax Attributes of Items in Other Comprehensive Income: | ||||
Amortization of loss, tax | (41) | (63) | (140) | (188) |
Amortization of prior service credit, tax | 14 | 17 | 47 | 50 |
Total Tax Expense | (27) | (46) | (93) | (138) |
Other Comprehensive Income, Net of Tax | 62 | 78 | 173 | 234 |
Comprehensive Income | $ 27,683 | $ 14,549 | $ 103,100 | $ 87,061 |
Summary Of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Lancaster Colony Corporation and our wholly-owned subsidiaries, collectively referred to as “we,” “us,” “our,” “registrant” or the “Company” and 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. Intercompany transactions and accounts have been eliminated in consolidation. The results of operations for any interim period are not necessarily indicative of results for the full year. Accordingly, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in our 2017 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, 2018 refers to fiscal 2018, which is the period from July 1, 2017 to June 30, 2018. Effective July 1, 2017, David A. Ciesinski, our President and Chief Operating Officer, succeeded John B. Gerlach, Jr. as Chief Executive Officer (“CEO”). As President and CEO, Mr. Ciesinski became our principal executive officer and chief operating decision maker (“CODM”). This change resulted in modifications to the CODM’s approach to managing the business, assessing performance and allocating resources. Consequently, beginning on July 1, 2017, our segment reporting structure was amended to align with these changes, and our financial results are now presented as two reportable segments: Retail and Foodservice. See Note 8 for additional details. All historical information was retroactively conformed to the current presentation. Property, Plant and Equipment Property, plant and equipment are recorded at cost, except for those acquired as part of a business combination, which are recorded at fair value at the time of purchase. We use the straight-line method of computing depreciation for financial reporting purposes based on the estimated useful lives of the corresponding assets. Purchases of property, plant and equipment included in Accounts Payable and excluded from the property additions and the change in accounts payable in the Condensed Consolidated Statements of Cash Flows were as follows:
Accrued Workers Compensation - Noncurrent Accrued workers compensation included in Other Noncurrent Liabilities was $12.5 million and $8.5 million at March 31, 2018 and June 30, 2017, respectively. 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. Basic and diluted net income per common share were calculated as follows:
Accumulated Other Comprehensive Loss The following table presents the amounts reclassified out of accumulated other comprehensive loss by component:
(1) See further discussion of this reclassification under the caption “Recently Adopted Accounting Standards” within Note 1. Significant Accounting Policies There were no changes to our Significant Accounting Policies from those disclosed in our 2017 Annual Report on Form 10-K. Recently Issued Accounting Standards In March 2017, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost by disaggregating the service cost component from the other components of net periodic benefit cost. The amendments require an employer to present service cost in the same line item(s) as compensation costs for the pertinent employees whereas the other components of net periodic benefit cost must be reported separately from service cost and outside of income from operations. The amendments also allow only the service cost component to be eligible for capitalization. The amendments require retrospective application for the income statement presentation provisions and prospective application for the capitalization of the service cost component. However, as a result of prior years’ restructuring activities, we no longer have any active employees continuing to accrue service cost. Therefore, the service cost provisions are not applicable to us, and we expect only changes in classification on the income statement. The guidance will be effective for us in fiscal 2019 including interim periods. In May 2014, the FASB issued new accounting guidance for the recognition of revenue and issued subsequent clarifications of this new guidance in 2016 and 2017. The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This model is based on a control approach rather than the current risks and rewards model. The new guidance would also require expanded disclosures. Since we did not early adopt this standard, the guidance will be effective for us in fiscal 2019 including interim periods and will require either retrospective application to each prior period presented or modified retrospective application with the cumulative effect of initially applying the standard recognized at the date of adoption. We are currently evaluating the method of adoption but believe that we will apply the modified retrospective approach. We are finalizing our assessment of the impact that this standard will have on our accounting policies, processes, system requirements, internal controls and disclosures using internal resources and the assistance of a third party. We have completed a review of selected customer contracts and are evaluating the impact of the new standard on certain common practices currently employed by us and by other manufacturers of consumer products. We do not expect the adoption of this standard to have a material impact on our financial position or results of operations. However, there will be additional required disclosures in the notes to the consolidated financial statements upon adoption. In February 2016, the FASB issued new accounting guidance to require lessees to recognize a right-of-use asset and a lease liability for leases with terms of more than 12 months and issued subsequent clarifications of this new guidance in 2018. This guidance retains the two classifications of a lease as either an operating or finance lease (previously referred to as a capital lease). Both lease classifications require the lessee to record a right-of-use asset and a lease liability based upon the present value of the lease payments. Finance leases will reflect the financial arrangement by recognizing interest expense on the lease liability separately from the amortization expense of the right-of-use asset. Operating leases will recognize lease expense (with no separate recognition of interest expense) on a straight-line basis over the term of the lease. The guidance requires expanded qualitative and quantitative disclosures, including additional information about the amounts recorded in the consolidated financial statements. The guidance will be effective for us in fiscal 2020 including interim periods using a modified retrospective approach. We are currently evaluating the impact of this guidance. Recently Adopted Accounting Standards In February 2018, the FASB issued new accounting guidance to allow a reclassification from accumulated other comprehensive income/loss to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (“Tax Act”). GAAP requires deferred tax assets and liabilities to be adjusted for the effect of a change in tax rates with the effect of the change included in income from continuing operations even when the related income tax effects of items in accumulated other comprehensive income/loss were originally recognized in other comprehensive income rather than in income from continuing operations. We adopted the new guidance on a prospective basis in the quarter ended March 31, 2018 and elected to reclassify these stranded tax effects resulting from the Tax Act from accumulated other comprehensive loss to retained earnings in the period of adoption. These tax effects related to the impact of the change in the federal income tax rate on pension and postretirement benefit amounts remaining in accumulated other comprehensive loss, and the reclassification resulted in a net increase in accumulated other comprehensive loss of $1.9 million and a corresponding increase in retained earnings. Our accounting policy is to release stranded tax effects from accumulated other comprehensive loss. As this guidance only relates to balance sheet classification, there was no impact on the Condensed Consolidated Statements of Income. In March 2016, the FASB issued new accounting guidance to simplify the accounting for stock-based compensation. The amendments include changes to the accounting for share-based payment transactions, including: the inclusion of the tax consequences related to stock-based compensation within the computation of income tax expense versus equity; the classification of awards as either equity or liabilities; and the classification of share-based activity on the statement of cash flows. The adoption may result in increased volatility to our income tax expense and resulting net income in future periods dependent upon, among other variables, the price of our common stock and the timing and volume of share-based payment award activity such as employee exercises of stock-settled stock appreciation rights and vesting of restricted stock awards. We adopted the new guidance on July 1, 2017 and elected to continue to estimate forfeitures. The adoption of this guidance resulted in 1) the prospective recognition of windfall tax benefits and shortfall tax deficiencies in income tax expense; 2) the retrospective reclassification of windfall tax benefits on the Condensed Consolidated Statements of Cash Flows from financing activities to operating activities; and 3) the retrospective reclassification of employee tax withholdings on the Condensed Consolidated Statements of Cash Flows from operating activities to financing activities. There was no material impact on our condensed consolidated financial statements as a result of this adoption. |
Acquisition |
9 Months Ended |
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Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition On November 17, 2016, we acquired substantially all of the assets of Angelic Bakehouse, Inc. (“Angelic”). Angelic, a privately owned manufacturer and marketer of premium sprouted grain bakery products, is based near Milwaukee, Wisconsin. The purchase price of $35.5 million was funded by cash on hand and includes immaterial post-closing adjustments, which were paid in April 2017 and July 2017, but excludes contingent consideration relating to an additional earn-out payment which is tied to performance-based conditions. In general, the terms of the acquisition specify that the sellers will receive an earn-out based upon a pre-determined multiple of the defined adjusted EBITDA of Angelic for fiscal 2021. We are unable to provide a range for the amount of this earn-out because it is based on the future adjusted EBITDA of Angelic, and the earn-out does not contain a minimum or maximum value. See further discussion of the earn-out in Note 3. Angelic is reported in our Retail segment, and its results of operations have been included in our condensed consolidated financial statements from the date of acquisition. |
Fair Value |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. GAAP sets forth a three-level fair value hierarchy, which prioritizes the inputs used in measuring fair value. The three levels are as follows: Level 1 – defined as observable inputs, such as quoted market prices in active markets. Level 2 – defined as inputs other than quoted prices in active markets that are either directly or indirectly observable. Level 3 – defined as unobservable inputs in which little or no market data exists, therefore, requiring an entity to develop its own assumptions. Our financial assets and liabilities consist principally of cash, accounts receivable, accounts payable and contingent consideration payable. The estimated fair value of cash, accounts receivable and accounts payable approximates their carrying value. Our contingent consideration, which is measured at fair value on a recurring basis, is included in Other Noncurrent Liabilities on the Condensed Consolidated Balance Sheets. The following table summarizes our contingent consideration:
The contingent consideration resulted from the earn-out associated with our November 17, 2016 acquisition of Angelic. The purchase price did not include the future earn-out payment which is tied to performance-based conditions. In general, the terms of the acquisition specify that the sellers will receive an earn-out based upon a pre-determined multiple of the defined adjusted EBITDA of Angelic for fiscal 2021. The fair value of the contingent consideration was estimated using a present value approach, which incorporates factors such as business risks and projections, to estimate an expected value. This fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement within the fair value hierarchy. Using this valuation technique, the fair value of the contingent consideration was determined to be $13.9 million at November 17, 2016. The following table represents our Level 3 fair value measurements using significant other unobservable inputs for acquisition-related contingent consideration:
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Long-Term Debt |
9 Months Ended |
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Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt At March 31, 2018 and June 30, 2017, we had an unsecured credit facility (“Facility”) under which we could borrow, on a revolving credit basis, up to a maximum of $150 million at any one time, with potential to expand the total credit availability to $225 million subject to us obtaining consent of the issuing banks and certain other conditions. The Facility expires on April 8, 2021, 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 Facility, 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. Due to the nature of its terms, when we have outstanding borrowings under the Facility, they will be classified as long-term debt. At March 31, 2018 and June 30, 2017, we had no borrowings outstanding under the Facility. At March 31, 2018, we had $5.1 million of standby letters of credit outstanding, which reduced the amount available for borrowing on the Facility. We paid no interest for the three and nine months ended March 31, 2018 and 2017. The Facility contains certain restrictive covenants, including limitations on indebtedness, asset sales and acquisitions. There are two principal financial covenants: an interest expense test that requires us to maintain an interest coverage ratio not less than 2.5 to 1 at the end of each fiscal quarter; and an indebtedness test that requires us to maintain a consolidated leverage ratio not greater than 3 to 1 at all times. The interest coverage ratio is calculated by dividing Consolidated EBIT by Consolidated Interest Expense, and the leverage ratio is calculated by dividing Consolidated Debt by Consolidated EBITDA. All financial terms used in the covenant calculations are defined more specifically in the Facility. |
Commitments And Contingencies |
9 Months Ended |
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Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies At March 31, 2018, we were a party to various claims and litigation matters arising in the ordinary course of business. Such matters did not have a material effect on the current-year results of operations and, in our opinion, their ultimate disposition will not have a material effect on our consolidated financial statements. With our acquisition of Angelic, we have a contingent liability recorded for the earn-out associated with the transaction. See further discussion in Note 3. |
Goodwill And Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill And Other Intangible Assets | Goodwill and Other Intangible Assets As described in Notes 1 and 8, we changed our reportable segments as of July 1, 2017 when our organizational structure changed. Using a relative fair value approach, we reassigned our existing goodwill balance to the two new reporting units that directly align with our new Retail and Foodservice reportable segments. Based on this approach, goodwill attributable to the Retail and Foodservice segments was $119.3 million and $48.7 million, respectively, at March 31, 2018 and June 30, 2017. The following table summarizes our identifiable other intangible assets.
Amortization expense for our other intangible assets, which is reflected in Selling, General and Administrative Expenses, was as follows:
Total annual amortization expense for each of the next five years is estimated to be as follows:
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Income Taxes |
9 Months Ended |
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Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Tax Cuts and Jobs Act of 2017 (“Tax Act”) was signed into law on December 22, 2017 with an effective date of January 1, 2018. Most notably, the Tax Act reduced the statutory federal income tax rate for corporations from 35% to 21%. Since we file our tax return based on our fiscal year, the statutory federal income tax rate for our 2018 tax return will be a blended rate of 28.1%. In addition to the effect of the lower overall federal tax rate, the Tax Act resulted in a $9 million one-time benefit for the preliminary re-measurement of our net deferred tax liability in the quarter ended December 31, 2017. The SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”) on December 22, 2017. SAB 118 allows for a measurement period in which companies can either use provisional estimates for changes resulting from the Tax Act or apply the tax laws that were in effect immediately prior to the Tax Act being enacted if estimates cannot be determined at the time of the preparation of the financial statements until the actual impacts can be determined. We recorded an estimate of the impact of the Tax Act within our December 31, 2017 financial statements, including the impact of items recorded within accumulated other comprehensive loss. There were no material changes to these estimates in the quarter ended March 31, 2018. We will continue to evaluate the impacts of the Tax Act and record adjustments, as needed, but do not expect material changes to the amounts recorded. In February 2018, the FASB issued new accounting guidance to allow a reclassification from accumulated other comprehensive income/loss to retained earnings for stranded tax effects resulting from the Tax Act. We recorded this reclassification in the quarter ended March 31, 2018. See further discussion under the caption “Recently Adopted Accounting Standards” in Note 1. Prepaid federal income taxes of $5.9 million and $6.1 million were included in Other Current Assets at March 31, 2018 and June 30, 2017, respectively. Prepaid state and local income taxes of $0.6 million and $0.9 million were included in Other Current Assets at March 31, 2018 and June 30, 2017, respectively. |
Business Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segment Information | Business Segment Information Effective July 1, 2017, David A. Ciesinski, our President and Chief Operating Officer, succeeded John B. Gerlach, Jr. as CEO. As President and CEO, Mr. Ciesinski became our principal executive officer and CODM. This change resulted in modifications to the CODM’s approach to managing the business, assessing performance and allocating resources. Consequently, beginning on July 1, 2017, our segment reporting structure was amended to align with these changes, and our financial results are now presented as two reportable segments: Retail and Foodservice. Costs that are directly attributable to either Retail or Foodservice are charged directly to the appropriate segment. Costs that are deemed to be indirect, excluding corporate expenses and other unusual significant transactions, are allocated to the two reportable segments using a reasonable methodology that is consistently applied. All historical information was retroactively conformed to the current presentation. These segment changes had no effect on previously reported consolidated net sales, operating income, net income or earnings per share. Retail - The vast majority of the products we sell in the Retail segment are sold through sales personnel, food brokers and distributors. We have placement of products in U.S. grocery produce departments through our refrigerated salad dressings, vegetable dips and fruit dips. Our flatbread products and sprouted grain bakery products are generally placed in the specialty bakery/deli section of the grocery store. We also have products typically marketed in the shelf-stable section of the grocery store, which include salad dressing, slaw dressing, dry egg noodles and croutons. Within the frozen food section of the grocery store, we also have prominent market positions of frozen yeast rolls, garlic breads and egg noodles. Foodservice - The vast majority of the products we sell in the Foodservice segment are sold through sales personnel, food brokers and distributors. Products we sell in the Foodservice segment are often custom-formulated and include salad dressings, sandwich and dipping sauces, frozen breads and yeast rolls. The majority of our Foodservice sales are products sold under branded and private label to distributors and restaurants primarily in the United States. Additionally, a portion of our sales are frozen specialty noodles, pasta and flatbreads sold to industrial customers for use as ingredients or components in their products. Within our organization, our procurement, manufacturing, warehousing and distribution activities are substantially integrated across our operations in order to maximize efficiency and productivity, as many of our products are similar between the two segments. Consequently, we do not prepare, and the CODM does not review, separate balance sheets for the reportable segments. As such, our external reporting will not include the presentation of identifiable assets by reportable segment. The composition of our identifiable assets at March 31, 2018 is generally consistent with that of June 30, 2017. We continue to evaluate our segments based on net sales and operating income. The following summary of financial information reflects the results of the Retail and Foodservice segments:
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Stock-Based Compensation |
9 Months Ended |
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Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation There have been no changes to our stock-based compensation plans from those disclosed in our 2017 Annual Report on Form 10-K. Our stock-settled stock appreciation rights (“SSSARs”) compensation expense was $0.6 million and $0.4 million for the three months ended March 31, 2018 and 2017, respectively. Year-to-date SSSARs compensation expense was $1.7 million for the current-year period compared to $1.3 million for the prior-year period. At March 31, 2018, there was $5.4 million of unrecognized compensation expense related to SSSARs that we will recognize over a weighted-average period of 2 years. Our restricted stock compensation expense was $0.6 million for the three months ended March 31, 2018 and 2017 and $1.8 million for the nine months ended March 31, 2018 and 2017. At March 31, 2018, there was $5.0 million of unrecognized compensation expense related to restricted stock that we will recognize over a weighted-average period of 2 years. |
Summary Of Significant Accounting Policies (Policy) |
9 Months Ended |
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Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis Of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Lancaster Colony Corporation and our wholly-owned subsidiaries, collectively referred to as “we,” “us,” “our,” “registrant” or the “Company” and 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. Intercompany transactions and accounts have been eliminated in consolidation. The results of operations for any interim period are not necessarily indicative of results for the full year. Accordingly, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in our 2017 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, 2018 refers to fiscal 2018, which is the period from July 1, 2017 to June 30, 2018. Effective July 1, 2017, David A. Ciesinski, our President and Chief Operating Officer, succeeded John B. Gerlach, Jr. as Chief Executive Officer (“CEO”). As President and CEO, Mr. Ciesinski became our principal executive officer and chief operating decision maker (“CODM”). This change resulted in modifications to the CODM’s approach to managing the business, assessing performance and allocating resources. Consequently, beginning on July 1, 2017, our segment reporting structure was amended to align with these changes, and our financial results are now presented as two reportable segments: Retail and Foodservice. See Note 8 for additional details. All historical information was retroactively conformed to the current presentation. |
Property, Plant And Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost, except for those acquired as part of a business combination, which are recorded at fair value at the time of purchase. We use the straight-line method of computing depreciation for financial reporting purposes based on the estimated useful lives of the corresponding assets. |
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. |
Recently Issued And Recently Adopted Accounting Standards | Recently Issued Accounting Standards In March 2017, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost by disaggregating the service cost component from the other components of net periodic benefit cost. The amendments require an employer to present service cost in the same line item(s) as compensation costs for the pertinent employees whereas the other components of net periodic benefit cost must be reported separately from service cost and outside of income from operations. The amendments also allow only the service cost component to be eligible for capitalization. The amendments require retrospective application for the income statement presentation provisions and prospective application for the capitalization of the service cost component. However, as a result of prior years’ restructuring activities, we no longer have any active employees continuing to accrue service cost. Therefore, the service cost provisions are not applicable to us, and we expect only changes in classification on the income statement. The guidance will be effective for us in fiscal 2019 including interim periods. In May 2014, the FASB issued new accounting guidance for the recognition of revenue and issued subsequent clarifications of this new guidance in 2016 and 2017. The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This model is based on a control approach rather than the current risks and rewards model. The new guidance would also require expanded disclosures. Since we did not early adopt this standard, the guidance will be effective for us in fiscal 2019 including interim periods and will require either retrospective application to each prior period presented or modified retrospective application with the cumulative effect of initially applying the standard recognized at the date of adoption. We are currently evaluating the method of adoption but believe that we will apply the modified retrospective approach. We are finalizing our assessment of the impact that this standard will have on our accounting policies, processes, system requirements, internal controls and disclosures using internal resources and the assistance of a third party. We have completed a review of selected customer contracts and are evaluating the impact of the new standard on certain common practices currently employed by us and by other manufacturers of consumer products. We do not expect the adoption of this standard to have a material impact on our financial position or results of operations. However, there will be additional required disclosures in the notes to the consolidated financial statements upon adoption. In February 2016, the FASB issued new accounting guidance to require lessees to recognize a right-of-use asset and a lease liability for leases with terms of more than 12 months and issued subsequent clarifications of this new guidance in 2018. This guidance retains the two classifications of a lease as either an operating or finance lease (previously referred to as a capital lease). Both lease classifications require the lessee to record a right-of-use asset and a lease liability based upon the present value of the lease payments. Finance leases will reflect the financial arrangement by recognizing interest expense on the lease liability separately from the amortization expense of the right-of-use asset. Operating leases will recognize lease expense (with no separate recognition of interest expense) on a straight-line basis over the term of the lease. The guidance requires expanded qualitative and quantitative disclosures, including additional information about the amounts recorded in the consolidated financial statements. The guidance will be effective for us in fiscal 2020 including interim periods using a modified retrospective approach. We are currently evaluating the impact of this guidance. Recently Adopted Accounting Standards In February 2018, the FASB issued new accounting guidance to allow a reclassification from accumulated other comprehensive income/loss to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (“Tax Act”). GAAP requires deferred tax assets and liabilities to be adjusted for the effect of a change in tax rates with the effect of the change included in income from continuing operations even when the related income tax effects of items in accumulated other comprehensive income/loss were originally recognized in other comprehensive income rather than in income from continuing operations. We adopted the new guidance on a prospective basis in the quarter ended March 31, 2018 and elected to reclassify these stranded tax effects resulting from the Tax Act from accumulated other comprehensive loss to retained earnings in the period of adoption. These tax effects related to the impact of the change in the federal income tax rate on pension and postretirement benefit amounts remaining in accumulated other comprehensive loss, and the reclassification resulted in a net increase in accumulated other comprehensive loss of $1.9 million and a corresponding increase in retained earnings. Our accounting policy is to release stranded tax effects from accumulated other comprehensive loss. As this guidance only relates to balance sheet classification, there was no impact on the Condensed Consolidated Statements of Income. In March 2016, the FASB issued new accounting guidance to simplify the accounting for stock-based compensation. The amendments include changes to the accounting for share-based payment transactions, including: the inclusion of the tax consequences related to stock-based compensation within the computation of income tax expense versus equity; the classification of awards as either equity or liabilities; and the classification of share-based activity on the statement of cash flows. The adoption may result in increased volatility to our income tax expense and resulting net income in future periods dependent upon, among other variables, the price of our common stock and the timing and volume of share-based payment award activity such as employee exercises of stock-settled stock appreciation rights and vesting of restricted stock awards. We adopted the new guidance on July 1, 2017 and elected to continue to estimate forfeitures. The adoption of this guidance resulted in 1) the prospective recognition of windfall tax benefits and shortfall tax deficiencies in income tax expense; 2) the retrospective reclassification of windfall tax benefits on the Condensed Consolidated Statements of Cash Flows from financing activities to operating activities; and 3) the retrospective reclassification of employee tax withholdings on the Condensed Consolidated Statements of Cash Flows from operating activities to financing activities. There was no material impact on our condensed consolidated financial statements as a result of this adoption. |
Summary Of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Construction In Progress In Accounts Payable | Purchases of property, plant and equipment included in Accounts Payable and excluded from the property additions and the change in accounts payable in the Condensed Consolidated Statements of Cash Flows were as follows:
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Schedule Of Basic And Diluted Net Income Per Common Share Calculations | Basic and diluted net income per common share were calculated as follows:
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Schedule Of Amounts Reclassified Out Of Accumulated Other Comprehensive Loss | The following table presents the amounts reclassified out of accumulated other comprehensive loss by component:
(1) See further discussion of this reclassification under the caption “Recently Adopted Accounting Standards” within Note 1. |
Fair Value (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Acquisition-Related Contingent Consideration Measured At Fair Value On A Recurring Basis | Our contingent consideration, which is measured at fair value on a recurring basis, is included in Other Noncurrent Liabilities on the Condensed Consolidated Balance Sheets. The following table summarizes our contingent consideration:
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Schedule Of Level 3 Fair Value Measurements Using Significant Other Unobservable Inputs For Acquisition-Related Contingent Consideration | The following table represents our Level 3 fair value measurements using significant other unobservable inputs for acquisition-related contingent consideration:
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Goodwill And Other Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Other Intangible Assets | The following table summarizes our identifiable other intangible assets.
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Schedule Of Amortization Expense | Amortization expense for our other intangible assets, which is reflected in Selling, General and Administrative Expenses, was as follows:
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Estimated Annual Amortization Expense | Total annual amortization expense for each of the next five years is estimated to be as follows:
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Business Segment Information (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Financial Information Attributable To Reportable Segments | The following summary of financial information reflects the results of the Retail and Foodservice segments:
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Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Mar. 31, 2018 |
Mar. 31, 2017 |
Jun. 30, 2017 |
|||||
Accounting Policies [Abstract] | |||||||||
Accrued workers compensation - noncurrent | $ 12,500 | $ 12,500 | $ 8,500 | ||||||
Tax Cuts And Jobs Act of 2017, Reclassification from accumulated other comprehensive loss to retained earnings | $ 1,889 | [1] | $ 0 | $ 1,889 | [1] | $ 0 | |||
|
Summary Of Significant Accounting Policies (Schedule Of Construction In Progress In Accounts Payable) (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Accounting Policies [Abstract] | ||
Construction in progress in Accounts Payable | $ 1,279 | $ 1,887 |
Summary Of Significant Accounting Policies (Schedule Of Basic And Diluted Net Income Per Common Share Calculations) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Accounting Policies [Abstract] | ||||
Net income | $ 27,621 | $ 14,471 | $ 102,927 | $ 86,827 |
Net income available to participating securities | (58) | (23) | (206) | (149) |
Net income available to common shareholders | $ 27,563 | $ 14,448 | $ 102,721 | $ 86,678 |
Weighted average common shares outstanding - basic (in shares) | 27,405 | 27,379 | 27,399 | 27,369 |
Incremental share effect from: | ||||
Nonparticipating restricted stock (in shares) | 2 | 1 | 3 | 3 |
Stock-settled stock appreciation rights (in shares) | 51 | 62 | 54 | 66 |
Weighted average common shares outstanding - diluted (in shares) | 27,458 | 27,442 | 27,456 | 27,438 |
Net income per common share - basic (in dollars per share) | $ 1.01 | $ 0.53 | $ 3.75 | $ 3.17 |
Net income per common share - diluted (in dollars per share) | $ 1.00 | $ 0.53 | $ 3.74 | $ 3.16 |
Acquisition (Narrative) (Details) $ in Millions |
12 Months Ended |
---|---|
Jun. 30, 2017
USD ($)
| |
Angelic [Member] | |
Business Acquisition [Line Items] | |
Purchase price | $ 35.5 |
Fair Value (Narrative) (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Jun. 30, 2017 |
Nov. 17, 2016 |
---|---|---|---|
Angelic [Member] | |||
Business Acquisition [Line Items] | |||
Fair value of contingent consideration | $ 16,542 | $ 15,028 | $ 13,900 |
Fair Value (Schedule Of Acquisition-Related Contingent Consideration Measured At Fair Value On A Recurring Basis) (Details) - Angelic [Member] - USD ($) $ in Thousands |
Mar. 31, 2018 |
Jun. 30, 2017 |
Nov. 17, 2016 |
---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Acquisition-related contingent consideration | $ 16,542 | $ 15,028 | $ 13,900 |
Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Acquisition-related contingent consideration | 0 | 0 | |
Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Acquisition-related contingent consideration | 0 | 0 | |
Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Acquisition-related contingent consideration | $ 16,542 | $ 15,028 |
Fair Value (Schedule Of Level 3 Fair Value Measurements Using Significant Other Unobservable Inputs For Acquisition-Related Contingent Consideration) (Details) - Angelic [Member] - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Business Acquisition [Line Items] | ||||
Acquisition-related contingent consideration at beginning of period | $ 16,021 | $ 14,096 | $ 15,028 | $ 0 |
Additions | 0 | 0 | 0 | 13,872 |
Changes in fair value included in Selling, General and Administrative Expenses | 521 | 458 | 1,514 | 682 |
Acquisition-related contingent consideration at end of period | $ 16,542 | $ 14,554 | $ 16,542 | $ 14,554 |
Long-Term Debt (Narrative) (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Mar. 31, 2018 |
Mar. 31, 2017 |
Jun. 30, 2017 |
|
Debt Disclosure [Abstract] | |||||
Maximum borrowing capacity | $ 150,000,000 | $ 150,000,000 | $ 150,000,000 | ||
Maximum borrowing capacity on obtaining consent of the issuing bank | 225,000,000 | $ 225,000,000 | 225,000,000 | ||
Line of credit facility, expiration date | Apr. 08, 2021 | ||||
Line of credit facility, amount outstanding | 0 | $ 0 | $ 0 | ||
Standby letters of credit, amount outstanding | 5,100,000 | 5,100,000 | |||
Interest paid | $ 0 | $ 0 | $ 0 | $ 0 | |
Minimum interest coverage ratio | 250.00% | ||||
Maximum leverage ratio | 300.00% |
Goodwill And Other Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Jun. 30, 2017 |
---|---|---|
Goodwill [Line Items] | ||
Goodwill | $ 168,030 | $ 168,030 |
Retail [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 119,300 | 119,300 |
Foodservice [Member] | ||
Goodwill [Line Items] | ||
Goodwill | $ 48,700 | $ 48,700 |
Goodwill And Other Intangible Assets (Summary Of Other Intangible Assets) (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Jun. 30, 2017 |
|
Finite-Lived Intangible Assets [Line Items] | ||
Net carrying value | $ 57,182 | $ 60,162 |
Tradenames (20 to 30-year life) [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 50,321 | 50,321 |
Accumulated amortization | (4,586) | (3,130) |
Net carrying value | 45,735 | 47,191 |
Trademarks (27-year life) [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 370 | 370 |
Accumulated amortization | (328) | (241) |
Net carrying value | $ 42 | 129 |
Finite-lived other intangible assets useful life (in years) | 27 years | |
Customer Relationships (10 to 15-year life) [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | $ 14,207 | 14,207 |
Accumulated amortization | (8,002) | (7,160) |
Net carrying value | 6,205 | 7,047 |
Technology / Know-how (10-year life) [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 6,350 | 6,350 |
Accumulated amortization | (1,523) | (1,047) |
Net carrying value | $ 4,827 | 5,303 |
Finite-lived other intangible assets useful life (in years) | 10 years | |
Non-compete Agreements (5-year life) [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | $ 791 | 791 |
Accumulated amortization | (418) | (299) |
Net carrying value | $ 373 | $ 492 |
Finite-lived other intangible assets useful life (in years) | 5 years | |
Minimum [Member] | Tradenames (20 to 30-year life) [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived other intangible assets useful life (in years) | 20 years | |
Minimum [Member] | Customer Relationships (10 to 15-year life) [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived other intangible assets useful life (in years) | 10 years | |
Maximum [Member] | Tradenames (20 to 30-year life) [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived other intangible assets useful life (in years) | 30 years | |
Maximum [Member] | Customer Relationships (10 to 15-year life) [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived other intangible assets useful life (in years) | 15 years |
Goodwill And Other Intangible Assets (Schedule Of Amortization Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 1,007 | $ 1,001 | $ 2,980 | $ 2,538 |
Goodwill And Other Intangible Assets (Estimated Annual Amortization Expense) (Details) $ in Thousands |
Mar. 31, 2018
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
2019 | $ 3,858 |
2020 | 3,823 |
2021 | 3,738 |
2022 | 3,664 |
2023 | $ 3,105 |
Income Taxes (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2017 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Mar. 31, 2018 |
|
Income Tax Disclosure [Abstract] | |||||
One-time benefit on preliminary re-measurement of net deferred tax liability | $ 9.0 | ||||
Income Tax Authority [Line Items] | |||||
Federal statutory income tax rate | 35.00% | ||||
Federal [Member] | |||||
Income Tax Authority [Line Items] | |||||
Prepaid income taxes | $ 6.1 | $ 5.9 | |||
State and Local [Member] | |||||
Income Tax Authority [Line Items] | |||||
Prepaid income taxes | $ 0.9 | $ 0.6 | |||
Scenario, Forecast [Member] | |||||
Income Tax Authority [Line Items] | |||||
Federal statutory income tax rate | 21.00% | 28.10% |
Business Segment Information (Summary Of Financial Information Attributable To Reportable Segments) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 296,174 | $ 293,834 | $ 914,755 | $ 911,968 |
Operating Income | 37,665 | 22,013 | 129,256 | 132,125 |
Retail [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 152,011 | 151,782 | 493,441 | 487,238 |
Operating Income | 26,321 | 29,129 | 96,504 | 106,840 |
Foodservice [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 144,163 | 142,052 | 421,314 | 424,730 |
Operating Income | 14,296 | 13,590 | 42,393 | 52,756 |
Multiemployer Pension Settlement and Related Costs [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income | 0 | (17,639) | 0 | (17,639) |
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income | $ (2,952) | $ (3,067) | $ (9,641) | $ (9,832) |
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Stock Settled Stock Appreciation Rights SARS [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 0.6 | $ 0.4 | $ 1.7 | $ 1.3 |
Unrecognized compensation expense | 5.4 | $ 5.4 | ||
Weighted-average period over which remaining compensation expense will be recognized (in years) | 2 years | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 0.6 | $ 0.6 | $ 1.8 | $ 1.8 |
Unrecognized compensation expense | $ 5.0 | $ 5.0 | ||
Weighted-average period over which remaining compensation expense will be recognized (in years) | 2 years |
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