TREEHOUSE FOODS, INC., 10-Q filed on 8/3/2017
Quarterly Report
v3.7.0.1
Document and Entity Information - shares
6 Months Ended
Jun. 30, 2017
Jul. 31, 2017
Document And Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Jun. 30, 2017  
Document Fiscal Year Focus 2017  
Document Fiscal Period Focus Q2  
Trading Symbol THS  
Entity Registrant Name TREEHOUSE FOODS, INC.  
Entity Central Index Key 0001320695  
Current Fiscal Year End Date --12-31  
Entity Filer Category Large Accelerated Filer  
Entity Common Stock, Shares Outstanding   57,188,303
v3.7.0.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Jun. 30, 2017
Dec. 31, 2016
Current assets:    
Cash and cash equivalents $ 174.2 $ 62.1
Investments 12.1 10.4
Receivables, net 352.7 429.0
Inventories, net 993.1 978.0
Assets held for sale 2.7 3.6
Prepaid expenses and other current assets 93.1 77.6
Total current assets 1,627.9 1,560.7
Property, plant, and equipment, net 1,296.3 1,359.3
Goodwill 2,454.2 2,447.2
Intangible assets, net 1,089.4 1,137.6
Other assets, net 42.1 41.0
Total assets 6,509.9 6,545.8
Current liabilities:    
Accounts payable and accrued expenses 712.1 626.8
Current portion of long-term debt 70.9 66.4
Total current liabilities 783.0 693.2
Long-term debt 2,568.4 2,724.8
Deferred income taxes 410.0 422.2
Other long-term liabilities 205.6 202.3
Total liabilities 3,967.0 4,042.5
Commitments and contingencies (Note 19)
Stockholders’ equity:    
Preferred stock, par value $0.01 per share, 10.0 shares authorized, none issued 0.0 0.0
Common stock, par value $0.01 per share, 90.0 shares authorized, 57.2 and 56.8 shares issued and outstanding, respectively 0.6 0.6
Additional paid-in capital 2,093.9 2,071.9
Retained earnings 526.1 532.1
Accumulated other comprehensive loss (77.7) (101.3)
Total stockholders’ equity 2,542.9 2,503.3
Total liabilities and stockholders’ equity $ 6,509.9 $ 6,545.8
v3.7.0.1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Jun. 30, 2017
Dec. 31, 2016
Statement Of Financial Position [Abstract]    
Preferred stock, par value $ 0.01 $ 0.01
Preferred stock, shares authorized 10,000,000 10,000,000
Preferred stock, shares issued 0 0
Common stock, par value $ 0.01 $ 0.01
Common stock, shares authorized 90,000,000 90,000,000
Common stock, shares issued 57,168,101 56,800,000
Common stock, shares outstanding 57,168,101 56,800,000
v3.7.0.1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Millions, $ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Income Statement [Abstract]        
Net sales $ 1,522.2 $ 1,541.4 $ 3,058.4 $ 2,811.6
Cost of sales 1,245.3 1,275.6 2,495.1 2,321.2
Gross profit 276.9 265.8 563.3 490.4
Operating expenses:        
Selling and distribution 94.8 104.3 199.4 189.8
General and administrative 83.1 78.1 162.2 172.7
Amortization expense 28.7 28.5 57.3 52.3
Other operating expense, net 94.0 3.3 100.8 5.0
Total operating expenses 300.6 214.2 519.7 419.8
Operating (loss) income (23.7) 51.6 43.6 70.6
Other expense (income):        
Interest expense 31.8 31.5 61.5 57.2
Interest income (0.3) (0.6) (3.1) (3.4)
Gain on foreign currency exchange (0.4) (0.8) (0.3) (4.9)
Other expense (income), net 1.2 (0.7) 1.8 4.3
Total other expense 32.3 29.4 59.9 53.2
(Loss) income before income taxes (56.0) 22.2 (16.3) 17.4
Income taxes (21.8) 3.2 (10.3) 1.6
Net (loss) income $ (34.2) $ 19.0 $ (6.0) $ 15.8
Net (loss) earnings per common share:        
Basic $ (0.60) $ 0.34 $ (0.11) $ 0.29
Diluted $ (0.60) $ 0.33 $ (0.11) $ 0.28
Weighted average common shares:        
Basic 57.0 56.6 57.0 54.6
Diluted 57.0 57.5 57.0 55.5
v3.7.0.1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Statement Of Income And Comprehensive Income [Abstract]        
Net (loss) income $ (34.2) $ 19.0 $ (6.0) $ 15.8
Other comprehensive income:        
Foreign currency translation adjustments 12.9 4.6 16.5 28.9
Pension and postretirement reclassification adjustment [1] 6.8 0.2 7.1 0.5
Other comprehensive income 19.7 4.8 23.6 29.4
Comprehensive (loss) income $ (14.5) $ 23.8 $ 17.6 $ 45.2
[1] Net of tax of $4.2 million and $0.2 million for the three months ended June 30, 2017 and 2016, respectively, and $4.4 million and $0.3 million for the six months ended June 30, 2017 and 2016, respectively.
v3.7.0.1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Statement Of Income And Comprehensive Income [Abstract]        
Pension and postretirement reclassification adjustment, tax $ 4.2 $ 0.2 $ 4.4 $ 0.3
v3.7.0.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Cash flows from operating activities:    
Net (loss) income $ (6.0) $ 15.8
Adjustments to reconcile net (loss) income to net cash provided by operating activities:    
Depreciation 81.7 80.5
Amortization 57.3 52.3
Stock-based compensation 18.6 14.3
Amortization of deferred financing costs 4.0 3.6
Loss on divestiture 85.2  
Mark-to-market loss on derivative contracts 2.5 3.0
Loss on disposition of assets 3.8 1.3
Deferred income taxes (16.7) (6.6)
Gain on foreign currency exchange (0.3) (4.9)
Write-down of tangible assets 1.5  
Other (1.3) (0.8)
Changes in operating assets and liabilities, net of effect of acquisitions:    
Receivables 77.2 13.6
Inventories (65.7) 47.0
Prepaid expenses and other assets (22.8) (44.5)
Accounts payable, accrued expenses, and other liabilities 108.4 65.9
Net cash provided by operating activities 327.4 240.5
Cash flows from investing activities:    
Additions to property, plant, and equipment (71.4) (84.0)
Additions to intangible assets (14.0) (5.9)
Acquisitions, less cash acquired   (2,640.2)
Proceeds from sale of fixed assets 1.7 0.1
Proceeds from divestiture 19.3  
Increase in restricted cash   (0.6)
Other (0.6) (0.5)
Net cash (used in) provided by investing activities (65.0) (2,731.1)
Cash flows from financing activities:    
Borrowings under Revolving Credit Facility 130.0 114.2
Payments under Revolving Credit Facility (251.0) (196.2)
Proceeds from issuance of Term Loan A-2   1,025.0
Proceeds from issuance of 2024 Notes   775.0
Payments on capitalized lease obligations and other debt (1.9) (2.1)
Payment of deferred financing costs   (34.3)
Payments on Term Loans (31.7) (15.1)
Net proceeds from issuance of common stock   835.1
Receipts related to stock-based award activities 9.9 7.0
Payments related to stock-based award activities (6.6) (7.8)
Net cash (used in) provided by financing activities (151.3) 2,500.8
Effect of exchange rate changes on cash and cash equivalents 1.0 6.5
Net increase in cash and cash equivalents 112.1 16.7
Cash and cash equivalents, beginning of period 62.1 34.9
Cash and cash equivalents, end of period $ 174.2 $ 51.6
v3.7.0.1
Basis of Presentation
6 Months Ended
Jun. 30, 2017
Accounting Policies [Abstract]  
Basis of Presentation

1. BASIS OF PRESENTATION

The unaudited Condensed Consolidated Financial Statements included herein have been prepared by TreeHouse Foods, Inc. and its consolidated subsidiaries (the “Company,” “TreeHouse,” “we,” “us,” or “our”), pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) applicable to quarterly reporting on Form 10-Q. In our opinion, these statements include all adjustments necessary for a fair presentation of the results of all interim periods reported herein. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted as permitted by such rules and regulations. Certain prior year amounts in the Condensed Consolidated Statements of Cash Flows have been reclassified to conform to the current period presentation. The Condensed Consolidated Financial Statements and related notes should be read in conjunction with the Consolidated Financial Statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016. Results of operations for interim periods are not necessarily indicative of annual results.

In the first quarter of 2017, the Company completed changes in its organizational structure that resulted in a change in how the Company manages its business and allocates resources. As a result, the Company revised its reportable segments to reflect how management currently reviews financial information and makes operating decisions. See Note 22 for additional details. All prior period amounts have been recast to reflect the change in reportable segments.

In the fourth quarter of 2016, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No 2016-09, Improvements to Employee Share-Based Payment Accounting. Under this ASU, excess tax benefits and deficiencies are no longer recognized as additional paid-in capital in the Condensed Consolidated Balance Sheets. The ASU requires recognition of excess tax benefits and deficiencies in the Condensed Consolidated Statements of Operations. As the Company adopted the ASU in the fourth quarter, any related adjustments were required to be reflected as of the beginning of the fiscal year of adoption. The results for the three and six months periods ended June 30, 2016 have been recast to reflect the adoption of the ASU as of January 1, 2016, resulting in income tax benefits of $3.3 million and $3.5 million, respectively, related to the recognition of excess tax benefits and deficiencies, which are included in the Income taxes line of the Condensed Consolidated Statements of Operations. The effect on basic and diluted net earnings per common share was $0.06 for the three and six months ended June 30, 2016. Additionally, the ASU requires excess tax benefits to be reported as a component of operating activities in the Condensed Consolidated Statements of Cash Flows. Excess tax benefits of $3.5 million were retrospectively reclassified from financing to operating activities in the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2016. The effects of the adoption of the other provisions of this ASU were immaterial.

On February 1, 2016, the Company acquired all of the outstanding common stock of Ralcorp Holdings, Inc., the Missouri corporation through which the private brands business (“Private Brands Business”) of ConAgra Foods, Inc. was operated. Ralcorp Holdings, Inc. was renamed TreeHouse Private Brands, Inc. during the first quarter of 2016. The results of operations of the Private Brands Business are included in our financial statements from the date of acquisition and are included in the Baked Goods, Condiments, Meals, and Snacks segments, as applicable.

The Private Brands Business was on a 4-4-5 fiscal calendar during the second quarter of 2016, and June 26, 2016 was the fiscal period end closest to the Company’s fiscal quarter end. This difference did not have a significant impact on the results of operations of the Private Brands Business. In the fourth quarter of 2016, the Company changed the fiscal year end of the Private Brands Business to December 31. The Company did not retrospectively apply the effects of this change to the three and six month periods ended June 30, 2016 due to impracticability, and believes the effects would be immaterial.

The preparation of our Condensed Consolidated Financial Statements in conformity with GAAP requires us to use our judgment to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements, and the reported amounts of net sales and expenses during the reporting period. Actual results could differ from these estimates.

A detailed description of the Company’s significant accounting policies can be found in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016.

v3.7.0.1
Recent Accounting Pronouncements
6 Months Ended
Jun. 30, 2017
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]  
Recent Accounting Pronouncements

2. RECENT ACCOUNTING PRONOUNCEMENTS

In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which revises how employers that sponsor defined benefit pension and other postretirement plans present net periodic benefit cost. The ASU requires an employer to present the service cost component in the same income statement line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside of any subtotal of operating income. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The standard requires adoption on a retrospective basis for the presentation of net benefit cost components. The Company is currently assessing the impact that this standard will have upon adoption.

In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment, to eliminate the second step of the goodwill impairment test. This ASU requires an entity to measure a goodwill impairment loss as the amount by which the carrying value of a reporting unit exceeds its fair value. Additionally, an entity should include the income tax effects from any tax deductible goodwill on the carrying value of the reporting unit when measuring a goodwill impairment loss, if applicable. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The standard requires adoption on a prospective basis. The Company is currently assessing the impact that this standard will have upon adoption.

In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash, to require that restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period amounts on the statement of cash flows. The Company currently classifies changes in restricted cash as an investing activity in the Consolidated Statements of Cash Flows. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The standard requires adoption on a retrospective basis. The Company is currently assessing the impact that this standard will have upon adoption, which is not expected to be significant.

In February 2016, the FASB issued ASU No. 2016-02, Leases, to increase transparency and comparability by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The main difference between existing GAAP and this ASU is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under existing GAAP. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The standard requires that entities apply the effects of these changes using a modified retrospective approach, which includes a number of optional practical expedients. The Company is beginning to assess the impact that this standard will have upon adoption.

In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, which requires entities to measure inventory at the lower of cost and net realizable value (“NRV”). This ASU will not apply to inventory valued under the last-in-first-out method. Under current guidance, an entity is required to measure inventory at the lower of cost or market, with market defined as replacement cost, NRV, or NRV less a normal profit margin. The three market measurements added complexity and reduced comparability in the valuation of inventory. FASB issued this ASU as part of its simplification initiative to address these issues. The ASU is effective on a prospective basis for fiscal years, and interim periods within those years, beginning after December 15, 2016. The Company prospectively adopted the ASU during the first quarter of 2017, the impact of which was not significant.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which introduced a new framework to be used when recognizing revenue in an attempt to reduce complexity and increase comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The standard requires that entities apply the effects of these changes to all prior years presented, upon adoption, using either the full retrospective method, which presents the impact of the change separately in each prior year presented, or the modified retrospective method, which includes the cumulative changes to all prior years presented in beginning retained earnings in the year of initial adoption. The Company expects to use the modified retrospective method. The FASB also issued ASU No. 2016-10, Identifying Performance Obligations and Licensing, and ASU No. 2016-12, Narrow-Scope Improvements and Practical Expedients, in April 2016 and May 2016, respectively, which amend the guidance in ASU 2014-09 and have the same effective date as the original standard. The Company is currently assessing the impact that these standards will have on its accounting policies, processes, system requirements, internal controls, and disclosures using internal resources and the assistance of a third-party. The Company has established a project plan, completed an initial review of its customer contracts, and is considering impacted policies and processes. The Company has not yet determined the impact that these standards will have on our financial position and results of operations.

v3.7.0.1
Restructuring
6 Months Ended
Jun. 30, 2017
Restructuring And Related Activities [Abstract]  
Restructuring

3. RESTRUCTURING

Plant Closing Costs — The Company continually analyzes its plant network to align operations with the current and future needs of its customers. Facility closure decisions are made when the Company identifies opportunities to lower production costs or eliminate excess manufacturing capacity while maintaining a competitive cost structure, service levels, and product quality. Expenses associated with facility closures are primarily aggregated in the Other operating expense, net line of the Condensed Consolidated Statements of Operations, with the exception of asset-related costs, which are recorded in Cost of sales. The key information regarding the Company’s announced facility closures is outlined in the table below.

 

Facility Location

 

Date of Closure

Announcement

 

End of

Production

 

Full Facility

Closure

 

Primary Products

Produced

 

Primary Segment(s)

Affected

 

Total

Costs to

Close

 

 

Total

Cash

Costs (Proceeds) to

Close

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions)

 

City of Industry, California

 

November 18, 2015

 

First quarter of 2016

 

Third quarter of 2016

 

Liquid non-dairy creamer and refrigerated salad dressings

 

Beverages, Condiments

 

$

6.9

 

 

$

3.8

 

Ayer, Massachusetts

 

April 5, 2016

 

First quarter of 2017

 

Third quarter of 2017

 

Spoonable dressings

 

Condiments

 

 

6.1

 

 

 

3.3

 

Azusa, California

 

May 24, 2016

 

First quarter of 2017

 

Third quarter of 2017

 

Bars and snack products

 

Snacks

 

 

18.5

 

 

 

15.1

 

Ripon, Wisconsin

 

May 24, 2016

 

Fourth quarter of 2016

 

Fourth quarter of 2016

 

Sugar wafer cookies

 

Baked Goods

 

 

0.8

 

 

 

(0.2

)

Delta, British Columbia

 

November 3, 2016

 

Fourth quarter of 2017

 

First quarter of 2018

 

Frozen griddle products

 

Baked Goods

 

 

3.3

 

 

 

2.3

 

Battle Creek, Michigan

 

November 3, 2016

 

(1)

 

(1)

 

Ready-to-eat cereal

 

Meals

 

 

10.4

 

 

 

2.8

 

 

 

(1)

The downsizing of this facility began in January 2017 and is expected to last approximately 15 months.

Total expected costs to close the City of Industry, California, Ayer, Massachusetts, Ripon, Wisconsin, and Delta, British Columbia facilities have been reduced by approximately $4.9 million, $0.4 million, $1.3 million, and $1.9 million, respectively, since the initial announcements, while total expected costs to close the Azusa, California facility have been increased by approximately $3.7 million. Total costs to restructure the Battle Creek, Michigan facility have increased by approximately $0.9 million since the initial announcement.

Below is a summary of the plant closing costs:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

Cumulative Costs

 

 

Total Expected

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

To Date

 

 

Costs

 

 

 

(In millions)

 

Asset-related

 

$

(0.9

)

 

$

0.7

 

 

$

3.5

 

 

$

1.5

 

 

$

13.7

 

 

$

16.8

 

Employee-related

 

 

0.2

 

 

 

1.3

 

 

 

2.7

 

 

 

1.9

 

 

 

10.0

 

 

 

11.8

 

Other closure costs

 

 

7.8

 

 

 

1.0

 

 

 

10.3

 

 

 

1.1

 

 

 

14.8

 

 

 

17.4

 

Total

 

$

7.1

 

 

$

3.0

 

 

$

16.5

 

 

$

4.5

 

 

$

38.5

 

 

$

46.0

 

 

Liabilities recorded as of June 30, 2017 associated with these plant closings relate to severance and the partial withdrawal from a multiemployer pension plan. The severance liability is included in the Accounts payable and accrued expenses line of the Condensed Consolidated Balance Sheets, while the multiemployer pension plan withdrawal liability is included in the Other long-term liabilities line of the Condensed Consolidated Balance Sheets. The table below presents a reconciliation of the liabilities as of June 30, 2017:

 

 

 

Severance

 

 

Multiemployer Pension

Plan Withdrawal

 

 

Other Costs

 

 

Total Liabilities

 

 

 

(In millions)

 

Balance as of December 31, 2016

 

$

3.5

 

 

$

0.8

 

 

$

 

 

$

4.3

 

Expense

 

 

2.4

 

 

 

 

 

 

2.4

 

 

 

4.8

 

Payments

 

 

(3.2

)

 

 

 

 

 

 

 

 

(3.2

)

Adjustments

 

 

(0.3

)

 

 

 

 

 

 

 

 

(0.3

)

Balance as of June 30, 2017

 

$

2.4

 

 

$

0.8

 

 

$

2.4

 

 

$

5.6

 

 

v3.7.0.1
Acquisitions
6 Months Ended
Jun. 30, 2017
Business Combinations [Abstract]  
Acquisitions

4. ACQUISITIONS

Private Brands Business

On February 1, 2016, the Company acquired the Private Brands Business, which is primarily engaged in manufacturing, distributing, and marketing private label products to retail grocery, food away from home, and industrial and export customers. The business’s primary product categories include snacks, retail bakery, pasta, cereal, bars, and condiments. The purchase price, after considering working capital adjustments, was approximately $2,644.4 million, net of acquired cash. The acquisition was funded by $835.1 million in net proceeds from a public sale of the Company’s common stock, $760.7 million in net proceeds from a private issuance of senior unsecured notes (“2024 Notes”), and a new $1,025.0 million term loan (“Term Loan A-2”), with the remaining balance funded by borrowings from the Company’s $900 million revolving credit facility (“Revolving Credit Facility”). The acquisition resulted in a broader portfolio of products and further diversified the Company’s product categories.

The Private Brands Business acquisition is accounted for under the acquisition method of accounting and the results of operations are included in our Condensed Consolidated Financial Statements from the date of acquisition in the Baked Goods, Condiments, Meals, and Snacks segments. Included in the Company’s Condensed Consolidated Statements of Operations are the Private Brands Business’s net sales of approximately $1,286.6 million and income before income taxes of $32.3 million from the date of acquisition through June 30, 2016. Integration costs of $6.5 million, which are included in the Cost of sales and General and administrative expense lines of the Condensed Consolidated Statements of Operations, were included in determining income before income taxes.

We have completed the purchase price allocation to net tangible and intangible assets acquired and liabilities assumed as follows:

 

 

(In millions)

 

Cash

$

43.3

 

Receivables

 

162.7

 

Inventory

 

443.7

 

Property, plant, and equipment

 

809.6

 

Customer relationships

 

510.9

 

Trade names

 

33.0

 

Software

 

19.6

 

Formulas

 

23.2

 

Other assets

 

50.2

 

Goodwill

 

1,141.2

 

Assets acquired

 

3,237.4

 

Deferred taxes

 

(152.8

)

Assumed current liabilities

 

(246.6

)

Assumed long-term liabilities

 

(150.3

)

Total purchase price

$

2,687.7

 

 

The Company allocated $496.1 million to customer relationships with retail grocery customers, which have an estimated life of 13 years, and $14.8 million to customer relationships with food away from home customers, which have an estimated life of 10 years. The Company allocated $33.0 million to trade names, which have an estimated life of 10 years. The Company allocated $23.2 million to formulas, which have an estimated life of 5 years. The Company allocated $19.6 million to capitalized software with estimated lives of 1 to 5 years, depending on expected use. The aforementioned intangibles will be amortized over their expected useful lives. Indemnification assets related to taxes of approximately $13.8 million were also recorded. The Company increased the cost of acquired inventories by approximately $8.4 million, and expensed the amount as a component of cost of sales. The Company has allocated $555.0 million, $73.3 million, $413.8 million, and $97.9 million of goodwill to the Baked Goods, Condiments, Meals, and Snacks segments, respectively. Goodwill arises principally as a result of expansion opportunities and synergies across both new and legacy product categories. None of the goodwill resulting from this acquisition is tax deductible. The Company incurred approximately $35.2 million in acquisition costs in 2016 and none in 2017. These costs are included in the General and administrative expense line of the Condensed Consolidated Statements of Operations.

The fair values for customer relationships at the acquisition date were determined using the excess earnings method under the income approach. Trade name fair values were determined using the relief from royalty method, while the fair value of formulas was determined using the cost approach. Real property fair values were determined using the cost and market approaches, while the fair value of personal property was determined using the indirect cost approach. The fair value measurements of intangible assets are based on significant unobservable inputs, and thus represent Level 3 inputs. Significant assumptions used in assessing the fair values of intangible assets include discounted future cash flows, customer attrition rates, and royalty rates.

Since the preliminary purchase price allocation included in the Company’s Annual Report for the fiscal year ended December 31, 2016, the Company recorded purchase price adjustments related to taxes, resulting in an increase to goodwill of approximately $3.0 million in the first quarter of 2017. These adjustments did not impact the Condensed Consolidated Statements of Operations.

The following unaudited pro forma information shows the results of operations for the Company as if its acquisition of the Private Brands Business had been completed as of January 1, 2016. Adjustments have been made for the pro forma effects of depreciation and amortization of tangible and intangible assets recognized as part of the business combination, the issuance of common stock, interest expense related to the financing of the business combination, and related income taxes. Excluded from the 2016 pro forma results are $35.2 million of costs incurred by the Company in connection with the acquisition. The pro forma results may not necessarily reflect actual results of operations that would have been achieved, nor are they necessarily indicative of future results of operations.

 

 

 

Six Months Ended

June 30, 2016

 

 

 

(In millions, except

per share data)

 

Pro forma net sales

 

$

3,135.5

 

Pro forma net income

 

$

37.5

 

Pro forma basic earnings per common share

 

$

0.66

 

Pro forma diluted earnings per common share

 

$

0.65

 

 

v3.7.0.1
Investments
6 Months Ended
Jun. 30, 2017
Investments Schedule [Abstract]  
Investments

5. INVESTMENTS

 

 

 

June 30,

 

 

December 31,

 

 

 

2017

 

 

2016

 

 

 

(In millions)

 

U.S. equity

 

$

8.9

 

 

$

7.6

 

Non-U.S. equity

 

 

2.1

 

 

 

1.8

 

Fixed income

 

 

1.1

 

 

 

1.0

 

Total investments

 

$

12.1

 

 

$

10.4

 

 

We determine the appropriate classification of our investments at the time of purchase and reevaluate such designation as of each balance sheet date. The Company accounts for investments in debt and marketable equity securities as held-to-maturity, available-for-sale, or trading, depending on their classification. The investments held by the Company are classified as trading securities and are stated at fair value, with changes in fair value recorded as a component of the Interest income or Interest expense line on the Condensed Consolidated Statements of Operations. Cash flows from purchases, sales, and maturities of trading securities are included in cash flows from investing activities in the Condensed Consolidated Statements of Cash Flows based on the nature and purpose for which the securities were acquired.

Our investments include U.S. equity, non-U.S. equity, and fixed income securities that are classified as short-term investments on the Condensed Consolidated Balance Sheets. The U.S. equity, non-U.S. equity, and fixed income securities are classified as short-term investments as they have characteristics of other current assets and are actively managed. When securities are sold, their cost is determined based on the first-in, first-out (“FIFO”) method.

v3.7.0.1
Inventories
6 Months Ended
Jun. 30, 2017
Inventory Disclosure [Abstract]  
Inventories

6. INVENTORIES

 

 

 

June 30,

 

 

December 31,

 

 

 

2017

 

 

2016

 

 

 

(In millions)

 

Raw materials and supplies

 

$

448.3

 

 

$

429.4

 

Finished goods

 

 

569.5

 

 

 

571.9

 

LIFO reserve

 

 

(24.7

)

 

 

(23.3

)

Total inventories

 

$

993.1

 

 

$

978.0

 

 

Inventory is generally accounted for under the FIFO method, and a portion is accounted for under the last-in, first-out (“LIFO”) method and the weighted average costing approach. Approximately $93.0 million and $105.9 million of our inventory was accounted for under the LIFO method of accounting at June 30, 2017 and December 31, 2016, respectively. Approximately $113.3 million and $116.2 million of our inventory was accounted for using the weighted average costing approach at June 30, 2017 and December 31, 2016, respectively.

v3.7.0.1
Property, Plant, and Equipment
6 Months Ended
Jun. 30, 2017
Property Plant And Equipment [Abstract]  
Property, Plant, and Equipment

7. PROPERTY, PLANT, AND EQUIPMENT

 

 

 

June 30,

 

 

December 31,

 

 

 

2017

 

 

2016

 

 

 

(In millions)

 

Land

 

$

70.0

 

 

$

71.2

 

Buildings and improvements

 

 

451.1

 

 

 

465.3

 

Machinery and equipment

 

 

1,250.5

 

 

 

1,324.5

 

Construction in progress

 

 

68.0

 

 

 

85.0

 

Total

 

 

1,839.6

 

 

 

1,946.0

 

Less accumulated depreciation

 

 

(543.3

)

 

 

(586.7

)

Property, plant, and equipment, net

 

$

1,296.3

 

 

$

1,359.3

 

 

Depreciation expense was $37.9 million and $44.9 million for the three months ended June 30, 2017 and 2016, respectively, and $81.7 million and $80.5 million for the six months ended June 30, 2017 and 2016, respectively.

v3.7.0.1
Goodwill and Intangible Assets
6 Months Ended
Jun. 30, 2017
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets

8. GOODWILL AND INTANGIBLE ASSETS

As a result of the changes in organizational structure completed in the first quarter of 2017, the Company has the following five operating segments, which are also its reporting units: Baked Goods, Beverages, Condiments, Meals, and Snacks. See Note 22 for more information.

The Company allocated the goodwill balance as of January 1, 2017 between the new reporting units using a relative fair value allocation approach. The change was considered a triggering event indicating a test for goodwill impairment was required as of January 1, 2017. The Company performed the first step of the impairment test, which did not result in the identification of any impairment losses. Changes in the carrying amount of goodwill for the six months ended June 30, 2017 are as follows:

 

 

 

Baked

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goods

 

 

Beverages

 

 

Condiments

 

 

Meals

 

 

Snacks

 

 

Total

 

 

 

(In millions)

 

Balance at January 1, 2017

 

$

554.2

 

 

$

713.2

 

 

$

433.1

 

 

$

470.6

 

 

$

276.1

 

 

$

2,447.2

 

Purchase price adjustments

 

 

1.4

 

 

 

 

 

 

0.2

 

 

 

1.1

 

 

 

0.3

 

 

 

3.0

 

Foreign currency exchange adjustments

 

 

 

 

 

1.7

 

 

 

2.3

 

 

 

 

 

 

 

 

 

4.0

 

Balance at June 30, 2017

 

$

555.6

 

 

$

714.9

 

 

$

435.6

 

 

$

471.7

 

 

$

276.4

 

 

$

2,454.2

 

The carrying amounts of our intangible assets with indefinite lives, other than goodwill, as of June 30, 2017 and December 31, 2016 are as follows:

 

 

 

June 30,

2017

 

 

December 31,

2016

 

 

 

(In millions)

 

Trademarks

 

$

22.1

 

 

$

21.6

 

Total indefinite lived intangibles

 

$

22.1

 

 

$

21.6

 

 

The increase in the indefinite lived intangibles balance is due to foreign currency translation.

The gross carrying amounts and accumulated amortization of intangible assets, with finite lives, as of June 30, 2017 and December 31, 2016 are as follows:

 

 

 

June 30, 2017

 

 

December 31, 2016

 

 

 

Gross

 

 

 

 

 

 

Net

 

 

Gross

 

 

 

 

 

 

Net

 

 

 

Carrying

 

 

Accumulated

 

 

Carrying

 

 

Carrying

 

 

Accumulated

 

 

Carrying

 

 

 

Amount

 

 

Amortization

 

 

Amount

 

 

Amount

 

 

Amortization

 

 

Amount

 

 

 

(In millions)

 

 

(In millions)

 

Intangible assets with finite lives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer-related

 

$

1,260.8

 

 

$

(317.4

)

 

$

943.4

 

 

$

1,284.3

 

 

$

(293.3

)

 

$

991.0

 

Contractual agreements

 

 

3.0

 

 

 

(2.9

)

 

 

0.1

 

 

 

3.0

 

 

 

(2.9

)

 

 

0.1

 

Trademarks

 

 

69.4

 

 

 

(26.0

)

 

 

43.4

 

 

 

69.6

 

 

 

(23.6

)

 

 

46.0

 

Formulas/recipes

 

 

33.8

 

 

 

(15.6

)

 

 

18.2

 

 

 

33.7

 

 

 

(12.8

)

 

 

20.9

 

Computer software

 

 

128.6

 

 

 

(66.4

)

 

 

62.2

 

 

 

115.7

 

 

 

(57.7

)

 

 

58.0

 

Total finite lived intangibles

 

$

1,495.6

 

 

$

(428.3

)

 

$

1,067.3

 

 

$

1,506.3

 

 

$

(390.3

)

 

$

1,116.0

 

 

Total intangible assets, excluding goodwill, as of June 30, 2017 and December 31, 2016 were $1,089.4 million and $1,137.6 million, respectively. Amortization expense on intangible assets for the three months ended June 30, 2017 and 2016 was $28.7 million and $28.5 million, respectively, and $57.3 million and $52.3 million for the six months ended June 30, 2017 and 2016, respectively. Estimated amortization expense on intangible assets for 2017 and the next four years is as follows:

 

 

 

(In millions)

 

2017

 

$

114.2

 

2018

 

 

108.1

 

2019

 

 

105.5

 

2020

 

 

103.0

 

2021

 

 

93.8

 

 

v3.7.0.1
Accounts Payable and Accrued Expenses
6 Months Ended
Jun. 30, 2017
Payables And Accruals [Abstract]  
Accounts Payable and Accrued Expenses

 9. ACCOUNTS PAYABLE AND ACCRUED EXPENSES

 

 

 

June 30,

 

 

December 31,

 

 

 

2017

 

 

2016

 

 

 

(In millions)

 

Accounts payable

 

$

576.8

 

 

$

458.1

 

Payroll and benefits

 

 

57.2

 

 

 

78.5

 

Interest

 

 

23.7

 

 

 

24.1

 

Taxes

 

 

10.2

 

 

 

31.0

 

Health insurance, workers’ compensation, and other insurance costs

 

 

26.3

 

 

 

17.2

 

Marketing expenses

 

 

9.6

 

 

 

12.4

 

Other accrued liabilities

 

 

8.3

 

 

 

5.5

 

Total

 

$

712.1

 

 

$

626.8

 

 

 

v3.7.0.1
Income Taxes
6 Months Ended
Jun. 30, 2017
Income Tax Disclosure [Abstract]  
Income Taxes

10. INCOME TAXES

 

Income taxes were recorded at an effective rate of 38.9% and 63.2% for the three and six months ended June 30, 2017, respectively, compared to 14.4% and 9.2% for the three and six months ended June 30, 2016, respectively. The changes in effective tax rates for the three and six months ended June 30, 2017 as compared to 2016 are primarily a result of the income tax benefits on the Company’s losses before income taxes for the three and six months ended June 30, 2017, the income tax benefits related to share-based payments, and the income tax benefits from the release of reserves for unrecognized tax benefits. Our effective tax rate may change from period to period based on recurring and non-recurring factors including the jurisdictional mix of earnings, enacted tax legislation, state income taxes, settlement of tax audits, and the expiration of the statute of limitations in relation to unrecognized tax benefits.

The Company’s effective tax rate differs from the U.S. federal statutory tax rate primarily due to state tax expense, the benefits associated with the federal domestic production activities deduction, and an intercompany financing structure entered into in conjunction with the E.D. Smith Foods, Ltd. (“E.D. Smith”) acquisition in 2007. In addition, the Company’s effective tax rate for the six months ended June 30, 2017 reflects a discrete benefit of approximately 13.9% attributable to the vesting and exercise of share-based awards.

The Internal Revenue Service (“IRS”) is currently examining the TreeHouse Foods, Inc. & Subsidiaries’ 2015 tax year. The Canadian Revenue Agency (“CRA”) is currently examining the 2008 through 2014 tax years of E.D. Smith. The CRA is also currently examining the 2013 tax year of Associated Brands, Inc. The CRA examinations are expected to be completed in 2017 or 2018. The Italian Agency of Revenue (“IAR”) is currently examining the 2007 through 2009 and 2013 tax years of Pasta Lensi S.r.l. The IAR examinations are not expected to be completed prior to 2020 due to a backlog of appeals before the agency. The Company has examinations in process with various state taxing authorities, which are expected to be completed in 2017 and 2018.

Management estimates that it is reasonably possible that the total amount of unrecognized tax benefits could decrease by as much as $5.8 million within the next 12 months, primarily as a result of the resolution of audits currently in progress and the lapsing of statutes of limitations. Approximately $2.8 million of the $5.8 million would affect net income when settled.

v3.7.0.1
Long-Term Debt
6 Months Ended
Jun. 30, 2017
Debt Disclosure [Abstract]  
Long-Term Debt

11. LONG-TERM DEBT

 

 

 

June 30,

 

 

December 31,

 

 

 

2017

 

 

2016

 

 

 

(In millions)

 

Revolving Credit Facility

 

$

49.0

 

 

$

170.0

 

Term Loan A

 

 

280.5

 

 

 

288.0

 

Term Loan A-1

 

 

175.0

 

 

 

180.0

 

Term Loan A-2

 

 

986.6

 

 

 

1,005.8

 

2022 Notes

 

 

400.0

 

 

 

400.0

 

2024 Notes

 

 

775.0

 

 

 

775.0

 

Other debt

 

 

3.1

 

 

 

5.7

 

Total outstanding debt

 

 

2,669.2

 

 

 

2,824.5

 

Deferred financing costs

 

 

(29.9

)

 

 

(33.3

)

Less current portion

 

 

(70.9

)

 

 

(66.4

)

Total long-term debt

 

$

2,568.4

 

 

$

2,724.8

 

On February 1, 2016, coincident with the closing of the acquisition of the Private Brands Business, the Company entered into the Amended and Restated Credit Agreement. The Amended and Restated Credit Agreement (1) amended the maturity dates of the Revolving Credit Facility, Term Loan A, and Term Loan A-1 so that they are conterminous and mature on February 1, 2021, (2) provided for the issuance of Term Loan A-2, (3) is now a secured facility until, among other conditions, the Company reaches a leverage ratio of 3.5 and has no other pari-passu secured debt outstanding, and (4) increased credit spreads. The proceeds from Term Loan A-2 were used to fund a portion of the purchase price of the Private Brands Business.

The Revolving Credit Facility, Term Loan A, Term Loan A-1, and Term Loan A-2 are known collectively as the “Amended and Restated Credit Agreement.” The Company’s average interest rate on debt outstanding under its Amended and Restated Credit Agreement for the three months ended June 30, 2017 was 3.02%. Including the interest rate swap agreements described below with a weighted average fixed interest rate base of approximately 0.86% on $500 million, the average rate decreases to 2.98%.

Revolving Credit Facility — As of June 30, 2017, $801.1 million of the aggregate commitment of $900 million of the Revolving Credit Facility was available. Under the Amended and Restated Credit Agreement, the Revolving Credit Facility matures on February 1, 2021. In addition, as of June 30, 2017, there were $49.9 million in letters of credit under the Revolving Credit Facility that were issued but undrawn, which have been included as a reduction to the calculation of available credit.

v3.7.0.1
Stockholders' Equity
6 Months Ended
Jun. 30, 2017
Equity [Abstract]  
Stockholders' Equity

12. STOCKHOLDERS’ EQUITY

Common stock — The Company has authorized 90 million shares of common stock with a par value of $0.01 per share. No dividends have been declared or paid. As of June 30, 2017, there were 57,168,101 shares of common stock issued and outstanding. There is no treasury stock issued or outstanding.

Preferred Stock — The Company has authorized 10 million shares of preferred stock with a par value of $0.01 per share. No preferred stock has been issued.

v3.7.0.1
Earnings Per Share
6 Months Ended
Jun. 30, 2017
Earnings Per Share [Abstract]  
Earnings Per Share

13. EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income by the number of weighted average common shares outstanding during the reporting period. The weighted average number of common shares used in the diluted earnings per share calculation is determined using the treasury stock method and includes the incremental effect related to the Company’s outstanding stock-based compensation awards.

The following table summarizes the effect of the share-based compensation awards on the weighted average number of shares outstanding used in calculating diluted earnings per share:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

(In millions, except per share data)

 

Net (loss) income

 

$

(34.2

)

 

$

19.0

 

 

$

(6.0

)

 

$

15.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

57.0

 

 

 

56.6

 

 

 

57.0

 

 

 

54.6

 

Assumed exercise/vesting of equity awards (1)

 

 

 

 

 

0.9

 

 

 

 

 

 

0.9

 

Weighted average diluted common shares outstanding

 

 

57.0

 

 

 

57.5

 

 

 

57.0

 

 

 

55.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) earnings per basic share

 

$

(0.60

)

 

$

0.34

 

 

$

(0.11

)

 

$

0.29

 

Net (loss) earnings per diluted share

 

$

(0.60

)

 

$

0.33

 

 

$

(0.11

)

 

$

0.28

 

 

(1)

Incremental shares from equity awards are computed using the treasury stock method. For the three and six months ended June 30, 2017, weighted average common shares outstanding is the same for the computations of basic and diluted earnings per share because the Company had a net loss for the periods. Equity awards, excluded from our computation of diluted earnings per share because they were anti-dilutive, were 1.1 million and 1.6 million for the three and six months ended June 30, 2017, respectively, and 0.7 million and 1.0 million for the three and six months ended June 30, 2016, respectively.

v3.7.0.1
Stock-Based Compensation
6 Months Ended
Jun. 30, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation

14. STOCK-BASED COMPENSATION

The Board of Directors adopted, and the Company’s stockholders approved, the “TreeHouse Foods, Inc. Equity and Incentive Plan” (the “Plan”). On April 27, 2017, the Plan was amended and restated to increase the number of shares available for issuance under the Plan by 3.8 million shares, effective February 14, 2017. The Plan is administered by our Compensation Committee, which consists entirely of independent directors. The Compensation Committee determines specific awards for our executive officers. For all other employees, if the committee designates, our Chief Executive Officer or such other officers will, from time to time, determine specific persons to whom awards under the Plan will be granted, and the terms and conditions of each award. The Compensation Committee or its designee, pursuant to the terms of the Plan, also will make all other necessary decisions and interpretations under the plan.

Under the Plan, the Compensation Committee may grant awards of various types of compensation, including stock options, restricted stock, restricted stock units, performance shares, performance units, other types of stock-based awards, and other cash-based compensation. The maximum number of shares available to be awarded under the Plan is approximately 16.1 million, of which approximately 5.0 million remain available at June 30, 2017.

(Loss) income before income taxes for the three and six month periods ended June 30, 2017 includes stock-based compensation expense of $11.1 million and $18.6 million, respectively. Stock-based compensation expense for the three and six months ended June 30, 2016 was $8.1 million and $14.3 million, respectively. The tax benefit recognized related to the compensation cost of these share-based awards was approximately $4.1 million and $6.9 million for the three and six months ended June 30, 2017, respectively, and $3.0 million and $5.2 million for the three and six months ended June 30, 2016, respectively.

 Stock Options — The following table summarizes stock option activity during the six months ended June 30, 2017. Stock options generally have a three year vesting schedule, which vest in approximately three equal installments on each of the first three anniversaries of the grant date, and expire ten years from the grant date.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

Average

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average

 

 

Remaining

 

 

Aggregate

 

 

 

Employee

 

 

Director

 

 

Exercise

 

 

Contractual

 

 

Intrinsic

 

 

 

Options

 

 

Options

 

 

Price

 

 

Term (yrs)

 

 

Value

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

(In millions)

 

Outstanding, at December 31, 2016

 

 

2,069

 

 

 

20

 

 

$

64.77

 

 

 

5.8

 

 

$

28.9

 

Granted

 

 

452

 

 

 

 

 

 

84.53

 

 

 

 

 

 

 

 

 

Forfeited

 

 

(58

)

 

 

 

 

 

87.93

 

 

 

 

 

 

 

 

 

Exercised

 

 

(228

)

 

 

(16

)

 

 

40.51

 

 

 

 

 

 

 

 

 

Expired

 

 

(2

)

 

 

 

 

 

85.17

 

 

 

 

 

 

 

 

 

Outstanding, at June 30, 2017

 

 

2,233

 

 

 

4

 

 

 

70.81

 

 

 

6.6

 

 

 

31.5

 

Vested/expected to vest, at June 30, 2017

 

 

2,149

 

 

 

4

 

 

 

70.19

 

 

 

6.4

 

 

 

31.4

 

Exercisable, at June 30, 2017

 

 

1,425

 

 

 

4

 

 

 

61.53

 

 

 

5.0

 

 

 

30.7

 

 

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

(In millions)

 

 

(In millions)

 

Compensation expense

 

$

2.8

 

 

$

1.9

 

 

$

4.6

 

 

$

3.5

 

Intrinsic value of stock options exercised

 

 

5.6

 

 

 

4.7

 

 

 

10.1

 

 

 

6.0

 

Tax benefit recognized from stock option exercises

 

 

2.2

 

 

 

1.7

 

 

 

3.9

 

 

 

2.1

 

 

Compensation costs related to unvested options totaled $18.0 million at June 30, 2017 and will be recognized over the remaining vesting period of the grants, which averages 2.3 years. The Company uses the Black-Scholes option pricing model to value its stock option awards. The assumptions used to calculate the fair value of stock options issued in 2017 include the following: weighted average expected volatility of 26.70%, expected term of six years, weighted average risk free rate of 2.07%, and no dividends. The weighted average grant date fair value of awards granted in 2017 was $24.86.

Restricted Stock Units — Employee restricted stock unit awards generally vest based on the passage of time. These awards generally vest in approximately three equal installments on each of the first three anniversaries of the grant date. Director restricted stock units generally vest on the first anniversary of the grant date. Certain directors have deferred receipt of their awards until either their departure from the Board of Directors or a specified date. As of June 30, 2017, 100 thousand director restricted stock units have been earned and deferred.

The following table summarizes the restricted stock unit activity during the six months ended June 30, 2017:

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

Weighted

 

 

 

Employee

 

 

Average

 

 

Director

 

 

Average

 

 

 

Restricted

 

 

Grant Date

 

 

Restricted

 

 

Grant Date

 

 

 

Stock Units

 

 

Fair Value

 

 

Stock Units

 

 

Fair Value

 

 

 

(In thousands)

 

 

 

 

 

 

(In thousands)

 

 

 

 

 

Outstanding, at December 31, 2016

 

 

516

 

 

$

87.03

 

 

 

104

 

 

$

57.78

 

Granted

 

 

265

 

 

 

83.97

 

 

 

17

 

 

 

84.66

 

Vested

 

 

(163

)

 

 

85.17

 

 

 

(2

)

 

 

98.28

 

Forfeited

 

 

(44

)

 

 

87.32

 

 

 

 

 

 

 

Outstanding, at June 30, 2017

 

 

574

 

 

 

86.11

 

 

 

119

 

 

 

60.86

 

 

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

(In millions)

 

 

(In millions)

 

Compensation expense

 

$

7.1

 

 

$

4.5

 

 

$

11.8

 

 

$

8.0

 

Fair value of vested restricted stock units

 

 

10.1

 

 

 

12.9

 

 

 

13.0

 

 

 

13.1

 

Tax benefit recognized from vested restricted stock units

 

 

3.7

 

 

 

4.6

 

 

 

4.8

 

 

 

4.7

 

 

Future compensation costs related to restricted stock units are approximately $36.7 million as of June 30, 2017 and will be recognized on a weighted average basis over the next 2.1 years. The grant date fair value of the awards is equal to the Company’s closing stock price on the grant date.

Performance Units — Performance unit awards are granted to certain members of management. These awards contain service and performance conditions. For each of the three performance periods, one-third of the units will accrue, multiplied by a predefined percentage between 0% and 200%, depending on the achievement of certain operating performance measures. Additionally, for the cumulative performance period, a number of units will accrue, equal to the number of units granted multiplied by a predefined percentage between 0% and 200%, depending on the achievement of certain operating performance measures, less any units previously accrued. Accrued units will be converted to stock or cash, at the discretion of the Compensation Committee, generally, on the third anniversary of the grant date. The Company intends to settle these awards in stock and has the shares available to do so. On June 27, 2017, based on an achievement of operating performance measures, 72,335 performance units were converted into 81,556 shares of stock, an average conversion of 1.13 shares for each performance unit. The following table summarizes the performance unit activity during the six months ended June 30, 2017:

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

Average

 

 

 

Performance

 

 

Grant Date

 

 

 

Units

 

 

Fair Value

 

 

 

(In thousands)

 

 

 

 

 

Unvested, at December 31, 2016

 

 

246

 

 

$

85.16

 

Granted

 

 

114

 

 

 

84.66

 

Vested

 

 

(72

)

 

 

79.89

 

Forfeited

 

 

(10

)

 

 

88.10

 

Unvested, at June 30, 2017

 

 

278

 

 

 

86.21

 

 

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

(In millions)

 

 

(In millions)

 

Compensation expense

 

$

1.2

 

 

$

1.7

 

 

$

2.2

 

 

$

2.8

 

Fair value of vested performance units

 

 

6.5

 

 

 

11.4

 

 

 

6.5

 

 

 

11.4

 

Tax benefit recognized from performance units vested

 

 

2.5

 

 

 

4.1

 

 

 

2.5

 

 

 

4.1

 

 

Future compensation costs related to the performance units are estimated to be approximately $12.7 million as of June 30, 2017, and are expected to be recognized over the next 2.4 years. The grant date fair value of the awards is equal to the Company’s closing stock price on the date of grant.

v3.7.0.1
Accumulated Other Comprehensive Loss
6 Months Ended
Jun. 30, 2017
Equity [Abstract]  
Accumulated Other Comprehensive Loss

15. ACCUMULATED OTHER COMPREHENSIVE LOSS

Accumulated other comprehensive loss consists of the following components, all of which are net of tax, except for the foreign currency translation adjustment:

 

 

 

 

 

 

 

Unrecognized

 

 

Accumulated

 

 

 

Foreign

 

 

Pension and

 

 

Other

 

 

 

Currency

 

 

Postretirement

 

 

Comprehensive

 

 

 

Translation (1)

 

 

Benefits (2)

 

 

Loss

 

 

 

(In millions)

 

Balance at December 31, 2016

 

$

(89.4

)

 

$

(11.9

)

 

$

(101.3

)

Other comprehensive income

 

 

16.5

 

 

 

 

 

 

16.5

 

Reclassifications from accumulated other comprehensive loss

 

 

 

 

 

7.1

 

 

 

7.1

 

Other comprehensive income

 

 

16.5

 

 

 

7.1

 

 

 

23.6

 

Balance at June 30, 2017

 

$

(72.9

)

 

$

(4.8

)

 

$

(77.7

)

 

 

 

 

 

 

 

Unrecognized

 

 

Accumulated

 

 

 

Foreign

 

 

Pension and

 

 

Other

 

 

 

Currency

 

 

Postretirement

 

 

Comprehensive

 

 

 

Translation (1)

 

 

Benefits (2)

 

 

Loss

 

 

 

(In millions)

 

Balance at December 31, 2015

 

$

(100.5

)

 

$

(13.0

)

 

$

(113.5

)

Other comprehensive income

 

 

28.9

 

 

 

 

 

 

28.9

 

Reclassifications from accumulated other comprehensive loss

 

 

 

 

 

0.5

 

 

 

0.5

 

Other comprehensive income

 

 

28.9

 

 

 

0.5

 

 

 

29.4

 

Balance at June 30, 2016

 

$

(71.6

)

 

$

(12.5

)

 

$

(84.1

)

 

 

(1)

The foreign currency translation adjustment is not net of tax, as the Company’s investments in its foreign subsidiaries are considered to be permanent.

 

(2)

The unrecognized pension and postretirement benefits reclassification is presented net of tax of $4.4 million and $0.3 million for the six months ended June 30, 2017 and 2016, respectively.

The Condensed Consolidated Statements of Operations lines impacted by reclassifications out of Accumulated other comprehensive loss are outlined below:

 

 

 

 

 

 

 

 

 

Affected line in

 

 

Reclassifications from Accumulated

 

 

the Condensed Consolidated

 

 

Other Comprehensive Loss

 

 

Statements of Operations

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

 

 

(In millions)

 

 

(In millions)

 

 

 

Amortization of defined benefit pension and postretirement items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service costs

 

$

 

 

$

 

 

$

0.1

 

 

$

0.1

 

 

(a)

Unrecognized net loss

 

 

0.2

 

 

 

0.4

 

 

 

0.6

 

 

 

0.7

 

 

(a)

Actuarial adjustment

 

 

2.1

 

 

 

 

 

 

2.1

 

 

 

 

 

(b)

Divestiture

 

 

8.7

 

 

 

 

 

 

8.7

 

 

 

 

 

Other operating expense, net

Total before tax

 

 

11.0

 

 

 

0.4

 

 

 

11.5

 

 

 

0.8

 

 

 

Income taxes

 

 

4.2

 

 

 

0.2

 

 

 

4.4

 

 

 

0.3

 

 

Income taxes

Net of tax

 

$

6.8

 

 

$

0.2

 

 

$

7.1

 

 

$

0.5

 

 

 

 

 

(a)

These accumulated other comprehensive loss components are included in the computation of net periodic pension and postretirement cost, and are recorded in the Cost of sales and General and administrative lines of the Condensed Consolidated Statements of Operations.

 

(b)

Represents the actuarial adjustment that was recorded in conjunction with the divestiture of a pension plan and a postretirement benefit plan in the second quarter of 2017.

v3.7.0.1
Employee Retirement and Postretirement Benefits
6 Months Ended
Jun. 30, 2017
Compensation And Retirement Disclosure [Abstract]  
Employee Retirement and Postretirement Benefits

16. EMPLOYEE RETIREMENT AND POSTRETIREMENT BENEFITS

Pension, Profit Sharing and Postretirement Benefits — Certain employees and retirees participate in pension and other postretirement benefit plans. Employee benefit plan obligations and expenses included in the Condensed Consolidated Financial Statements are determined based on plan assumptions, employee demographic data, including years of service and compensation, benefits and claims paid, and employer contributions. In connection with the divestiture of the canned soup and infant feeding (“SIF”) business in the second quarter of 2017, the Company divested a pension plan and a postretirement benefit plan. The net unfunded liability associated with these plans as of the closing date, which is included in the Other operating expense, net line of the Condensed Consolidated Statements of Operations, was $10.5 million.

Components of net periodic pension expense are as follows:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

(In millions)

 

 

(In millions)

 

Service cost

 

$

1.0

 

 

$

1.3

 

 

$

2.2

 

 

$

2.3

 

Interest cost

 

 

3.8

 

 

 

4.1

 

 

 

7.8

 

 

 

7.1

 

Expected return on plan assets

 

 

(4.4

)

 

 

(4.5

)

 

 

(9.1

)

 

 

(7.7

)

Amortization of unrecognized prior service cost

 

 

 

 

 

 

 

 

0.1

 

 

 

0.1

 

Amortization of unrecognized net loss

 

 

0.2

 

 

 

0.4

 

 

 

0.6

 

 

 

0.7

 

Net periodic pension cost

 

$

0.6

 

 

$

1.3

 

 

$

1.6

 

 

$

2.5

 

 

The Company does not expect to make any contributions to the pension plans in 2017.

Components of net periodic postretirement expense are as follows:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

(In millions)

 

 

(In millions)

 

Service cost

 

$

 

 

$

 

 

$

 

 

$

 

Interest cost

 

 

0.3

 

 

 

0.4

 

 

 

0.6

 

 

 

0.6

 

Amortization of unrecognized prior service cost

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of unrecognized net loss

 

 

 

 

 

 

 

 

 

 

 

 

Net periodic postretirement cost

 

$

0.3

 

 

$

0.4

 

 

$

0.6

 

 

$

0.6

 

 

The Company expects to contribute approximately $1.6 million to the postretirement health plans during 2017.

Net periodic pension and postretirement costs are recorded in the Cost of sales and General and administrative lines of the Condensed Consolidated Statements of Operations.

v3.7.0.1
Other Operating Expense, Net
6 Months Ended
Jun. 30, 2017
Other Income And Expenses [Abstract]  
Other Operating Expense, Net

17. OTHER OPERATING EXPENSE, NET

The Company incurred other operating expense for the three and six months ended June 30, 2017 and 2016, which consisted of the following:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

(In millions)

 

 

(In millions)

 

Restructuring

 

$

8.8

 

 

$

2.5

 

 

$

15.6

 

 

$

4.1

 

Loss on divestiture

 

 

85.2

 

 

 

 

 

 

85.2

 

 

 

 

Other

 

 

 

 

 

0.8

 

 

 

 

 

 

0.9

 

Total other operating expense, net

 

$

94.0

 

 

$

3.3

 

 

$

100.8

 

 

$

5.0

 

On May 22, 2017, the Company completed the divestiture of its SIF business. The SIF business is based in Pittsburgh, Pennsylvania and produced private label condensed and ready-to-serve soup, baby food, and gravies for the Meals segment. The divestiture of this business did not meet the criteria to be presented as discontinued operations as it did not represent a strategic shift that would have a major effect on the Company’s results of operations. The transaction remains subject to working capital adjustments that are expected to be finalized in the third quarter of 2017.

v3.7.0.1
Supplemental Cash Flow Information
6 Months Ended
Jun. 30, 2017
Supplemental Cash Flow Elements [Abstract]  
Supplemental Cash Flow Information

18. SUPPLEMENTAL CASH FLOW INFORMATION

 

 

 

Six Months Ended

 

 

 

June 30,

 

 

 

2017

 

 

2016

 

 

 

(In millions)

 

Interest paid

 

$

56.9

 

 

$

33.3

 

Income taxes paid

 

 

21.7

 

 

 

46.4

 

Accrued purchase of property and equipment

 

 

14.9

 

 

 

11.5

 

Accrued other intangible assets

 

 

5.0

 

 

 

3.0

 

 

Non-cash financing activities for the six months ended June 30, 2017 and 2016 include $19.5 million and $24.0 million, respectively, related to the vesting of restricted stock, restricted stock units, and performance stock units.

v3.7.0.1
Commitments and Contingencies
6 Months Ended
Jun. 30, 2017
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

19. COMMITMENTS AND CONTINGENCIES

Litigation, Investigations and Audits — On November 16, 2016, a purported TreeHouse shareholder filed a putative class action captioned Tarara v. TreeHouse Foods, Inc., et al., Case No. 1:16-cv-10632, in the United States District Court for the Northern District of Illinois against TreeHouse and certain of its officers. The complaint, amended on March 24, 2017, is purportedly brought on behalf of all purchasers of TreeHouse common stock from January 20, 2016 through and including November 2, 2016, asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder and seeks, among other things, damages and costs and expenses. On December 22, 2016, another purported TreeHouse shareholder filed an action captioned Wells v. Reed, et al., Case No. 2016-CH-16359, in the Circuit Court of Cook County, Illinois, against TreeHouse and certain of its officers. This complaint, purportedly brought derivatively on behalf of TreeHouse, asserts state law claims against certain officers for breach of fiduciary duty, unjust enrichment, and corporate waste. On February 7, 2017, another purported TreeHouse shareholder filed an action captioned Lavin v. Reed, Case No. 17-cv-01014, in the Northern District of Illinois, against TreeHouse and certain of its officers. This complaint, like Wells, is purportedly brought derivatively on behalf of TreeHouse, and it asserts state law claims against certain officers for breach of fiduciary duty, unjust enrichment, abuse of control, gross mismanagement, and corporate waste.

All three complaints make substantially similar allegations (though the amended complaint in Tarara now contains additional detail). Essentially, the complaints allege that TreeHouse, under the authority and control of the individual defendants: (i) made certain false and misleading statements regarding the Company’s business, operations, and future prospects; and (ii) failed to disclose that (a) the Company’s private label business was underperforming; (b) the Company’s Flagstone business was underperforming; (c) the Company’s acquisition strategy was underperforming; (d) the Company had overstated its full-year 2016 guidance; and (e) TreeHouse’s statements lacked reasonable basis. The complaints allege that these actions artificially inflated the market price of TreeHouse common stock during the class period, thus purportedly harming investors. We believe that these claims are without merit and intend to defend against them vigorously.

Since its initial docketing, the Tarara matter has been re-captioned as Public Employees’ Retirement Systems of Mississippi v. TreeHouse Foods, Inc., et al., in accordance with the Court’s order appointing Public Employees’ Retirement Systems of Mississippi as the lead plaintiff. The Public Employees’ defendants have filed a motion to dismiss, which has been fully briefed.

Additionally, due to the similarity of the complaints, the parties in Wells and Lavin have entered stipulations deferring the litigation until the earlier of (i) the court in Public Employees’ entering an order resolving defendants’ anticipated motion to dismiss therein or (ii) plaintiffs’ counsel receiving notification of a settlement of Public Employees’ or until otherwise agreed to by the Parties. The next status dates in Wells and Lavin are October 30, 2017 and August 4, 2017, respectively, though these dates may change.

In addition, we are party to a variety of legal proceedings arising out of the conduct of our business. While the results of proceedings cannot be predicted with certainty, management believes that the final outcome of these proceedings will not have a material adverse effect on our consolidated financial statements, results of operations, or cash flows.

v3.7.0.1
Derivative Instruments
6 Months Ended
Jun. 30, 2017
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Derivative Instruments

20. DERIVATIVE INSTRUMENTS

The Company is exposed to certain risks relating to its ongoing business operations. The primary risks managed by derivative instruments include interest rate risk, foreign currency risk, and commodity price risk. Derivative contracts are entered into for periods consistent with the related underlying exposure and do not constitute positions independent of those exposures. The Company does not enter into derivative instruments for trading or speculative purposes.

The Company manages its exposure to changes in interest rates by optimizing the use of variable-rate and fixed-rate debt and by utilizing interest rate swaps to hedge our exposure to changes in interest rates, to reduce the volatility of our financing costs, and to achieve a desired proportion of fixed versus floating-rate debt, based on current and projected market conditions, with a bias toward fixed-rate debt.

In June 2016, the Company entered into $500 million of long-term interest rate swap agreements to lock into a fixed LIBOR interest rate base. Under the terms of the agreements, $500 million in variable-rate debt was swapped for a weighted average fixed interest rate base of approximately 0.86% for a period of 37 months, beginning on January 31, 2017 and ending on February 28, 2020. These agreements do not qualify for hedge accounting and changes in their fair value are recorded in the Condensed Consolidated Statements of Operations, with their fair value recorded on the Condensed Consolidated Balance Sheets.

Due to the Company’s foreign operations, we are exposed to foreign currency risk. The Company enters into foreign currency contracts to manage the risk associated with foreign currency cash flows. The Company’s objective in using foreign currency contracts is to establish a fixed foreign currency exchange rate for the net cash flow requirements for purchases that are denominated in U.S. dollars. These contracts do not qualify for hedge accounting and changes in their fair value are recorded in the Condensed Consolidated Statements of Operations, with their fair value recorded on the Condensed Consolidated Balance Sheets. As of June 30, 2017, the Company had $23.6 million of U.S. dollar foreign currency contracts outstanding, expiring throughout 2017.

Certain commodities we use in the production and distribution of our products are exposed to market price risk. The Company utilizes derivative contracts to manage this risk. The majority of commodity forward contracts are not derivatives, and those that are generally qualify for the normal purchases and normal sales scope exception under the guidance for derivative instruments and hedging activities and, therefore, are not subject to its provisions. For derivative commodity contracts that do not qualify for the normal purchases and normal sales scope exception, the Company records their fair value on the Condensed Consolidated Balance Sheets, with changes in value being recorded in the Condensed Consolidated Statements of Operations.

The Company’s derivative commodity contracts may include contracts for diesel, oil, plastics, natural gas, electricity, and other commodity contracts that do not meet the requirements for the normal purchases and normal sales scope exception.

Diesel contracts are used to manage the Company’s risk associated with the underlying cost of diesel fuel used to deliver products. Contracts for oil and plastics are used to manage the Company’s risk associated with the underlying commodity cost of a significant component used in packaging materials. Contracts for natural gas and electricity are used to manage the Company’s risk associated with the utility costs of its manufacturing facilities, and commodity contracts that are derivatives that do not meet the normal purchases and normal sales scope exception are used to manage the price risk associated with raw material costs. As of June 30, 2017, the Company had outstanding contracts for the purchase of 107,370 megawatts of electricity, expiring throughout 2017 and 2018; 14.0 million gallons of diesel, expiring throughout 2017 and early 2018; 3.1 million dekatherms of natural gas, expiring throughout 2017 and 2018; 0.3 million bushels of wheat, expiring throughout 2017 and early 2018; and 0.9 million bushels of corn, expiring throughout 2017 and early 2018.

 The following table identifies the derivative, its fair value, and location on the Condensed Consolidated Balance Sheets:

 

 

 

 

 

Fair Value

 

 

 

Balance Sheet Location

 

June 30, 2017

 

 

December 31, 2016

 

 

 

 

 

(In millions)

 

Asset Derivatives

 

 

 

 

 

 

 

 

 

 

Commodity contracts

 

Prepaid expenses and other current assets

 

$

0.5

 

 

$

1.0

 

Foreign currency contracts

 

Prepaid expenses and other current assets

 

 

0.3

 

 

 

0.7

 

Interest rate swap agreements

 

Prepaid expenses and other current assets

 

 

9.9

 

 

 

10.4

 

 

 

 

 

$

10.7

 

 

$

12.1

 

Liability Derivatives

 

 

 

 

 

 

 

 

 

 

Commodity contracts

 

Accounts payable and accrued expenses

 

$

1.2

 

 

$

0.5

 

Foreign currency contracts

 

Accounts payable and accrued expenses

 

 

0.4

 

 

 

 

 

 

 

 

$

1.6

 

 

$

0.5

 

 

We recorded the following gains and losses on our derivative contracts in the Condensed Consolidated Statements of Operations:

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

Location of Gain (Loss)

 

June 30,

 

 

June 30,

 

 

 

Recognized in Net (Loss) Income

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

 

 

(In millions)

 

 

(In millions)

 

Mark-to-market unrealized

   gain (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity contracts

 

Other expense (income), net

 

$

(0.1

)

 

$

0.5

 

 

$

(1.2

)

 

$

0.9

 

Foreign currency contracts

 

Other expense (income), net

 

 

(0.7

)

 

 

2.8

 

 

 

(0.8

)

 

 

(2.3

)

Interest rate swap agreements

 

Other expense (income), net

 

 

(1.5

)

 

 

(1.6

)

 

 

(0.5

)

 

 

(1.6

)

Total unrealized (loss) gain

 

 

 

 

(2.3

)

 

 

1.7

 

 

 

(2.5

)

 

 

(3.0

)

Realized gain (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity contracts

 

Manufacturing related to Cost of sales and transportation related to Selling and distribution

 

 

(0.7

)

 

 

 

 

 

(0.2

)

 

 

(1.0

)

Foreign currency contracts

 

Cost of sales

 

 

1.0

 

 

 

(2.7

)

 

 

1.2

 

 

 

(1.9

)

Interest rate swap agreements

 

Interest expense

 

 

0.2

 

 

 

 

 

 

0.1

 

 

 

 

Total realized gain (loss)

 

 

 

 

0.5

 

 

 

(2.7

)

 

 

1.1

 

 

 

(2.9

)

Total loss

 

 

 

$

(1.8

)

 

$

(1.0

)

 

$

(1.4

)

 

$

(5.9

)

 

v3.7.0.1
Fair Value
6 Months Ended
Jun. 30, 2017
Fair Value Disclosures [Abstract]  
Fair Value

21. FAIR VALUE

The following table presents the carrying value and fair value of our financial instruments as of June 30, 2017 and December 31, 2016:

 

 

 

June 30, 2017

 

 

December 31, 2016

 

 

 

 

 

 

 

Carrying

Value

 

 

Fair

Value

 

 

Carrying

Value

 

 

Fair

Value

 

 

Level

 

 

 

(In millions)

 

 

(In millions)

 

 

 

 

 

Not recorded at fair value (liability):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revolving Credit Facility

 

$

(49.0

)

 

$

(48.3

)

 

$

(170.0

)

 

$

(167.1

)

 

 

2

 

Term Loan A

 

 

(280.5

)

 

 

(280.9

)

 

 

(288.0

)

 

 

(288.1

)

 

 

2

 

Term Loan A-1

 

 

(175.0

)

 

 

(175.3

)

 

 

(180.0

)

 

 

(180.3

)

 

 

2

 

Term Loan A-2

 

 

(986.6

)

 

 

(988.3

)

 

 

(1,005.8

)

 

 

(1,007.4

)

 

 

2

 

2022 Notes

 

 

(400.0

)

 

 

(413.0

)

 

 

(400.0

)

 

 

(410.0

)

 

 

2

 

2024 Notes

 

 

(775.0

)

 

 

(825.4

)

 

 

(775.0

)

 

 

(809.9

)

 

 

2

 

Recorded on a recurring basis at fair value

   (liability) asset:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity contracts

 

$

(0.7

)

 

$

(0.7

)

 

$

0.5

 

 

$

0.5

 

 

 

2

 

Foreign currency contracts

 

 

(0.1

)

 

 

(0.1

)

 

 

0.7

 

 

 

0.7

 

 

 

2

 

Interest rate swap agreements

 

 

9.9

 

 

 

9.9

 

 

 

10.4

 

 

 

10.4

 

 

 

2

 

Investments

 

 

12.1

 

 

 

12.1

 

 

 

10.4

 

 

 

10.4

 

 

 

1

 

 

Cash and cash equivalents and accounts receivable are financial assets with carrying values that approximate fair value. Accounts payable are financial liabilities with carrying values that approximate fair value.

The fair value of the Revolving Credit Facility, Term Loan A, Term Loan A-1, Term Loan A-2, 2022 Notes, 2024 Notes, commodity contracts, foreign currency contracts, and interest rate swap agreements are determined using Level 2 inputs. Level 2 inputs are inputs other than quoted market prices that are observable for an asset or liability, either directly or indirectly. The fair values of the Revolving Credit Facility, Term Loan A, Term Loan A-1, and Term Loan A-2 were estimated using present value techniques and market based interest rates and credit spreads. The fair values of the Company’s 2022 Notes and 2024 Notes were estimated based on quoted market prices for similar instruments, where the inputs are considered Level 2, due to their infrequent trading volume. The fair values of the commodity contracts, foreign currency contracts, and interest rate swap agreements are based on an analysis comparing the contract rates to the market rates at the balance sheet date. The commodity contracts, foreign currency contracts, and interest rate swap agreements are recorded at fair value on the Condensed Consolidated Balance Sheets.

The fair value of the investments was determined using Level 1 inputs. Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement dates. The investments are recorded at fair value on the Condensed Consolidated Balance Sheets.

v3.7.0.1
Segment and Geographic Information and Major Customers
6 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
Segment and Geographic Information and Major Customers

22. SEGMENT AND GEOGRAPHIC INFORMATION AND MAJOR CUSTOMERS

In the first quarter of 2017, the Company completed changes in its organizational structure that resulted in a change in how the Company manages its business and allocates resources. Our reportable segments are now organized and managed by products: Baked Goods, Beverages, Condiments, Meals, and Snacks. Previously, our reportable segments were organized and managed by customer channels: North American Retail Grocery, Food Away From Home, and Industrial and Export. All prior period information has been recast to reflect this change.

The Company manages operations on a company-wide basis, thereby making determinations as to the allocation of resources in total rather than on a segment-level basis. The Company has designated reportable segments based on how management views its business. The Company does not segregate assets between segments for internal reporting. Therefore, asset-related information has not been presented. The reportable segments, as presented below, are consistent with the manner in which the Company reports its results to the Chief Operating Decision Maker. Our segments are as follows:

Baked Goods – Our Baked Goods segment sells candy; cookies; crackers; in-store bakery products; pita chips; pretzels; refrigerated dough; and retail griddle waffles, pancakes, and French toast.

Beverages – Our Beverages segment sells broths; liquid non-dairy creamer; non-dairy powdered creamers; powdered drinks; single serve hot beverages; specialty teas, and sweeteners.

Condiments – Our Condiments segment sells aseptic cheese and pudding products; jams, preserves, and jellies; mayonnaise; Mexican, barbeque, and other sauces; pickles and related products; refrigerated and shelf stable dressings and sauces; and table and flavored syrups.

Meals – Our Meals segment sells baking and mix powders; powdered soups and gravies; macaroni and cheese; pasta; ready-to-eat and hot cereals; and skillet dinners. Condensed and ready to serve soup and infant feeding products were sold within the Meals segment through the divestiture of the SIF business on May 22, 2017.

Snacks – Our Snacks segment sells bars; dried fruit; snack nuts; trail mixes; and other wholesome snacks.

The Company evaluates the performance of its segments based on net sales dollars and direct operating income. In conjunction with the change in segments, the Company revised its calculation of direct operating income to include direct general and administrative expenses. Direct operating income is now defined as gross profit less freight out, sales commissions, and direct selling, general, and administrative expenses. All prior period information has been recast to reflect this change. The amounts in the following tables are obtained from reports used by senior management and do not include income taxes. Other expenses not allocated include unallocated selling, general, and administrative expenses, unallocated costs of sales, and unallocated corporate expenses (amortization expense and other operating expense). The accounting policies of the Company’s segments are the same as those described in the summary of significant accounting policies set forth in Note 1 to the Consolidated Financial Statements contained in our Annual Report on Form 10-K for the year ended December 31, 2016.

Financial information relating to the Company’s reportable segments is as follows:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

(In millions)

 

 

(In millions)

 

Net sales to external customers:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baked Goods

 

$

324.3

 

 

$

322.9

 

 

$

665.4

 

 

$

542.4

 

Beverages

 

 

246.2

 

 

 

212.9

 

 

 

514.2

 

 

 

437.8

 

Condiments

 

 

344.9

 

 

 

340.5

 

 

 

655.0

 

 

 

636.1

 

Meals

 

 

288.4

 

 

 

317.0

 

 

 

612.4

 

 

 

589.4

 

Snacks

 

 

317.0

 

 

 

358.0

 

 

 

607.6

 

 

 

615.8

 

Unallocated

 

 

1.4

 

 

 

(9.9

)

 

 

3.8

 

 

 

(9.9

)

Total

 

$

1,522.2

 

 

$

1,541.4

 

 

$

3,058.4

 

 

$

2,811.6

 

Direct operating income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baked Goods

 

$

32.5

 

 

$

34.8

 

 

$

74.4

 

 

$

63.6

 

Beverages

 

 

60.3

 

 

 

54.1

 

 

 

119.0

 

 

 

111.8

 

Condiments

 

 

36.0

 

 

 

41.9

 

 

 

67.7

 

 

 

77.0

 

Meals

 

 

33.8

 

 

 

29.4

 

 

 

67.8

 

 

 

55.8

 

Snacks

 

 

10.1

 

 

 

19.0

 

 

 

22.6

 

 

 

28.8

 

Total

 

 

172.7

 

 

 

179.2

 

 

 

351.5

 

 

 

337.0

 

Unallocated selling, general, and administrative expenses

 

 

(82.0

)

 

 

(79.2

)

 

 

(162.0

)

 

 

(179.9

)

Unallocated cost of sales (1)

 

 

6.9

 

 

 

(6.7

)

 

 

8.4

 

 

 

(19.3

)

Unallocated corporate expense and other

 

 

(121.3

)

 

 

(41.7

)

 

 

(154.3

)

 

 

(67.2

)

Operating (loss) income

 

 

(23.7

)

 

 

51.6

 

 

 

43.6

 

 

 

70.6

 

Other expense

 

 

(32.3

)

 

 

(29.4

)

 

 

(59.9

)

 

 

(53.2

)

(Loss) income before income taxes

 

$

(56.0

)

 

$

22.2

 

 

$

(16.3

)

 

$

17.4

 

 

 

(1)

Includes charges related to restructurings and other costs managed at corporate.

Geographic Information — The Company had revenues from customers outside of the United States of approximately 8.6% and 9.0% of total consolidated net sales in the six months ended June 30, 2017 and 2016, respectively, with 6.8% and 7.1% of total consolidated net sales in Canada, respectively. The Company held 11.6% and 11.2% of its property, plant, and equipment outside of the United States as of June 30, 2017 and 2016, respectively.

Major Customers — Walmart Stores, Inc. and affiliates accounted for approximately 20.6% and 18.7% of consolidated net sales in the six months ended June 30, 2017 and 2016, respectively. No other customer accounted for more than 10% of our consolidated net sales during these periods.

Product Information — The following table presents the Company’s net sales by major products for the three and six months ended June 30, 2017 and 2016. In the first quarter of 2017, the Company changed the product categories to align with the changes in organizational structure described above. All prior period information has been recast to reflect this change.

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

(In millions)

 

 

(In millions)

 

Products:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dressings and sauces

 

$

250.9

 

 

$

248.1

 

 

$

488.2

 

 

$

469.4

 

Snack nuts

 

 

196.5

 

 

 

205.7

 

 

 

384.2

 

 

 

348.0

 

Beverages

 

 

167.7

 

 

 

142.0

 

 

 

350.8

 

 

 

286.1

 

Retail bakery

 

 

162.0

 

 

 

159.0

 

 

 

344.6

 

 

 

272.3

 

Cereals and other meals

 

 

149.2

 

 

 

182.1

 

 

 

339.6

 

 

 

352.0

 

Baked products

 

 

162.3

 

 

 

163.9

 

 

 

320.8

 

 

 

270.1

 

Pasta and dry dinners

 

 

139.2

 

 

 

134.9

 

 

 

272.8

 

 

 

237.4

 

Trail mix and bars

 

 

121.9

 

 

 

142.4

 

 

 

227.2

 

 

 

257.9

 

Pickles

 

 

94.0

 

 

 

92.4

 

 

 

166.8

 

 

 

166.7

 

Beverage enhancers

 

 

78.5

 

 

 

70.9

 

 

 

163.4

 

 

 

151.7

 

Total net sales

 

$

1,522.2

 

 

$

1,541.4

 

 

$

3,058.4

 

 

$

2,811.6

 

 

v3.7.0.1
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION
6 Months Ended
Jun. 30, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION

23. GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION

The Company’s 2022 Notes and 2024 Notes are guaranteed fully and unconditionally, as well as jointly and severally, by its Guarantor Subsidiaries. The guarantees of the Guarantor Subsidiaries are subject to release in limited circumstances, only upon the occurrence of certain customary conditions. There are no significant restrictions on the ability of the parent company or any guarantor to obtain funds from its subsidiaries by dividend or loan. The following condensed supplemental consolidating financial information presents the results of operations, financial position, and cash flows of the parent company, its Guarantor Subsidiaries, its non-guarantor subsidiaries, and the eliminations necessary to arrive at the information for the Company on a consolidated basis as of June 30, 2017 and 2016, and for the three and six months ended June 30, 2017 and 2016. The equity method has been used with respect to investments in subsidiaries. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions.

Condensed Supplemental Consolidating Balance Sheet

June 30, 2017

(In millions)

 

 

 

Parent

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

 

 

 

 

 

Company

 

 

Subsidiaries

 

 

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

107.0

 

 

$

0.2

 

 

$

67.0

 

 

$

 

 

$

174.2

 

Investments

 

 

 

 

 

 

 

 

12.1

 

 

 

 

 

 

12.1

 

Accounts receivable, net

 

 

0.6

 

 

 

308.1

 

 

 

44.0

 

 

 

 

 

 

352.7

 

Inventories, net

 

 

 

 

 

867.8

 

 

 

125.3

 

 

 

 

 

 

993.1

 

Assets held for sale

 

 

 

 

 

2.7

 

 

 

 

 

 

 

 

 

2.7

 

Prepaid expenses and other current assets

 

 

61.3

 

 

 

13.7

 

 

 

18.1

 

 

 

 

 

 

93.1

 

Total current assets

 

 

168.9

 

 

 

1,192.5

 

 

 

266.5

 

 

 

 

 

 

1,627.9

 

Property, plant, and equipment, net

 

 

29.8

 

 

 

1,115.9

 

 

 

150.6

 

 

 

 

 

 

1,296.3

 

Goodwill

 

 

 

 

 

2,333.7

 

 

 

120.5

 

 

 

 

 

 

2,454.2

 

Investment in subsidiaries

 

 

5,129.6

 

 

 

549.2

 

 

 

 

 

 

(5,678.8

)

 

 

-

 

Intercompany accounts receivable (payable), net

 

 

(174.8

)

 

 

168.8

 

 

 

6.0

 

 

 

 

 

 

-

 

Deferred income taxes

 

 

22.0

 

 

 

 

 

 

 

 

 

(22.0

)

 

 

-

 

Intangible and other assets, net

 

 

59.7

 

 

 

966.8

 

 

 

105.0

 

 

 

 

 

 

1,131.5

 

Total assets

 

$

5,235.2

 

 

$

6,326.9

 

 

$

648.6

 

 

$

(5,700.8

)

 

$

6,509.9

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

45.2

 

 

$

599.4

 

 

$

67.5

 

 

$

 

 

$

712.1

 

Current portion of long-term debt

 

 

69.5

 

 

 

1.3

 

 

 

0.1

 

 

 

 

 

 

70.9

 

Total current liabilities

 

 

114.7

 

 

 

600.7

 

 

 

67.6

 

 

 

 

 

 

783.0

 

Long-term debt

 

 

2,566.6

 

 

 

1.6

 

 

 

0.2

 

 

 

 

 

 

2,568.4

 

Deferred income taxes

 

 

 

 

 

406.1

 

 

 

25.9

 

 

 

(22.0

)

 

 

410.0

 

Other long-term liabilities

 

 

11.0

 

 

 

188.9

 

 

 

5.7

 

 

 

 

 

 

205.6

 

Stockholders’ equity

 

 

2,542.9

 

 

 

5,129.6

 

 

 

549.2

 

 

 

(5,678.8

)

 

 

2,542.9

 

Total liabilities and stockholders’ equity

 

$

5,235.2

 

 

$

6,326.9

 

 

$

648.6

 

 

$

(5,700.8

)

 

$

6,509.9

 

Condensed Supplemental Consolidating Balance Sheet

December 31, 2016

(In millions)

 

 

 

Parent

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

 

 

 

 

 

Company

 

 

Subsidiaries

 

 

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

 

 

$

0.2

 

 

$

61.9

 

 

$

 

 

$

62.1

 

Investments

 

 

 

 

 

 

 

 

10.4

 

 

 

 

 

 

10.4

 

Accounts receivable, net

 

 

 

 

 

372.9

 

 

 

56.1

 

 

 

 

 

 

429.0

 

Inventories, net

 

 

 

 

 

869.6

 

 

 

108.4

 

 

 

 

 

 

978.0

 

Assets held for sale

 

 

 

 

 

3.6

 

 

 

 

 

 

 

 

 

3.6

 

Prepaid expenses and other current assets

 

 

23.6

 

 

 

36.7

 

 

 

17.3

 

 

 

 

 

 

77.6

 

Total current assets

 

 

23.6

 

 

 

1,283.0

 

 

 

254.1

 

 

 

 

 

 

1,560.7

 

Property, plant, and equipment, net

 

 

31.3

 

 

 

1,181.0

 

 

 

147.0

 

 

 

 

 

 

1,359.3

 

Goodwill

 

 

 

 

 

2,330.8

 

 

 

116.4

 

 

 

 

 

 

2,447.2

 

Investment in subsidiaries

 

 

5,031.5

 

 

 

519.4

 

 

 

 

 

 

(5,550.9

)

 

 

 

Intercompany accounts receivable (payable), net

 

 

199.6

 

 

 

(196.9

)

 

 

(2.7

)

 

 

 

 

 

 

Deferred income taxes

 

 

20.7

 

 

 

 

 

 

 

 

 

(20.7

)

 

 

 

Intangible and other assets, net

 

 

53.9

 

 

 

1,018.0

 

 

 

106.7

 

 

 

 

 

 

1,178.6

 

Total assets

 

$

5,360.6

 

 

$

6,135.3

 

 

$

621.5

 

 

$

(5,571.6

)

 

$

6,545.8

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

61.3

 

 

$

493.1

 

 

$

72.4

 

 

$

 

 

$

626.8

 

Current portion of long-term debt

 

 

63.1

 

 

 

3.2

 

 

 

0.1

 

 

 

 

 

 

66.4

 

Total current liabilities

 

 

124.4

 

 

 

496.3

 

 

 

72.5

 

 

 

 

 

 

693.2

 

Long-term debt

 

 

2,722.3

 

 

 

2.2

 

 

 

0.3

 

 

 

 

 

 

2,724.8

 

Deferred income taxes

 

 

 

 

 

418.3

 

 

 

24.6

 

 

 

(20.7

)

 

 

422.2

 

Other long-term liabilities

 

 

10.6

 

 

 

187.0

 

 

 

4.7

 

 

 

 

 

 

202.3

 

Stockholders’ equity

 

 

2,503.3

 

 

 

5,031.5

 

 

 

519.4

 

 

 

(5,550.9

)

 

 

2,503.3

 

Total liabilities and stockholders’ equity

 

$

5,360.6

 

 

$

6,135.3

 

 

$

621.5

 

 

$

(5,571.6

)

 

$

6,545.8

 

 

Condensed Supplemental Consolidating Statement of Operations

Three Months Ended June 30, 2017

(In millions)

 

 

 

Parent

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

 

 

 

 

 

Company

 

 

Subsidiaries

 

 

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Net sales

 

$

 

 

$

1,439.9

 

 

$

158.9

 

 

$

(76.6

)

 

$

1,522.2

 

Cost of sales

 

 

 

 

 

1,187.0

 

 

 

134.9

 

 

 

(76.6

)

 

 

1,245.3

 

Gross profit

 

 

 

 

 

252.9

 

 

 

24.0

 

 

 

 

 

 

276.9

 

Selling, general, and administrative expense

 

 

34.6

 

 

 

132.9

 

 

 

10.4

 

 

 

 

 

 

177.9

 

Amortization expense

 

 

3.2

 

 

 

23.1

 

 

 

2.4

 

 

 

 

 

 

28.7

 

Other operating expense, net

 

 

 

 

 

92.8

 

 

 

1.2

 

 

 

 

 

 

94.0

 

Operating (loss) income

 

 

(37.8

)

 

 

4.1

 

 

 

10.0

 

 

 

 

 

 

(23.7

)

Interest expense

 

 

31.7

 

 

 

 

 

 

(0.2

)

 

 

0.3

 

 

 

31.8

 

Interest income

 

 

 

 

 

0.3

 

 

 

(0.3

)

 

 

(0.3

)

 

 

(0.3

)

Other expense (income), net

 

 

1.5

 

 

 

(0.1

)

 

 

(0.6

)

 

 

 

 

 

0.8

 

(Loss) income before income taxes

 

 

(71.0

)

 

 

3.9

 

 

 

11.1

 

 

 

 

 

 

(56.0

)

Income taxes (benefit)

 

 

(27.4

)

 

 

3.1

 

 

 

2.5

 

 

 

 

 

 

(21.8

)

Equity in net income (loss) of subsidiaries

 

 

9.4

 

 

 

8.6

 

 

 

 

 

 

(18.0

)

 

 

 

Net (loss) income

 

$

(34.2

)

 

$

9.4

 

 

$

8.6

 

 

$

(18.0

)

 

$

(34.2

)

 

 

Condensed Supplemental Consolidating Statement of Operations

Three Months Ended June 30, 2016

(In millions)

 

 

 

Parent

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

 

 

 

 

 

Company

 

 

Subsidiaries

 

 

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Net sales

 

$

 

 

$

1,454.5

 

 

$

159.0

 

 

$

(72.1

)

 

$

1,541.4

 

Cost of sales

 

 

 

 

 

1,210.7

 

 

 

137.0

 

 

 

(72.1

)

 

 

1,275.6

 

Gross profit

 

 

 

 

 

243.8

 

 

 

22.0

 

 

 

 

 

 

265.8

 

Selling, general, and administrative expense

 

 

22.9

 

 

 

143.2

 

 

 

16.3

 

 

 

 

 

 

182.4

 

Amortization expense

 

 

2.3

 

 

 

23.8

 

 

 

2.4

 

 

 

 

 

 

28.5

 

Other operating expense, net

 

 

 

 

 

2.8

 

 

 

0.5

 

 

 

 

 

 

3.3

 

Operating (loss) income

 

 

(25.2

)

 

 

74.0

 

 

 

2.8

 

 

 

 

 

 

51.6

 

Interest expense

 

 

31.0

 

 

 

0.4

 

 

 

1.4

 

 

 

(1.3

)

 

 

31.5

 

Interest income

 

 

 

 

 

(1.6

)

 

 

(0.3

)

 

 

1.3

 

 

 

(0.6

)

Other expense (income), net

 

 

 

 

 

2.7

 

 

 

(4.2

)

 

 

 

 

 

(1.5

)

(Loss) income before income taxes

 

 

(56.2

)

 

 

72.5

 

 

 

5.9

 

 

 

 

 

 

22.2

 

Income taxes (benefit)

 

 

(21.3

)

 

 

24.7

 

 

 

(0.2

)

 

 

 

 

 

3.2

 

Equity in net income (loss) of subsidiaries

 

 

53.9

 

 

 

6.1

 

 

 

 

 

 

(60.0

)

 

 

 

Net income (loss)

 

$

19.0

 

 

$

53.9

 

 

$

6.1

 

 

$

(60.0

)

 

$

19.0

 

 

Condensed Supplemental Consolidating Statement of Operations

Six Months Ended June 30, 2017

(In millions)

 

 

 

Parent

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

 

 

 

 

 

Company

 

 

Subsidiaries

 

 

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Net sales

 

$

 

 

$

2,895.3

 

 

$

322.9

 

 

$

(159.8

)

 

$

3,058.4

 

Cost of sales

 

 

 

 

 

2,375.4

 

 

 

279.5

 

 

 

(159.8

)

 

 

2,495.1

 

Gross profit

 

 

 

 

 

519.9

 

 

 

43.4

 

 

 

 

 

 

563.3

 

Selling, general, and administrative expense

 

 

62.1

 

 

 

279.5

 

 

 

20.0

 

 

 

 

 

 

361.6

 

Amortization expense

 

 

6.1

 

 

 

46.5

 

 

 

4.7

 

 

 

 

 

 

57.3

 

Other operating expense, net

 

 

 

 

 

99.4

 

 

 

1.4

 

 

 

 

 

 

100.8

 

Operating (loss) income

 

 

(68.2

)

 

 

94.5

 

 

 

17.3

 

 

 

 

 

 

43.6

 

Interest expense

 

 

62.9

 

 

 

0.2

 

 

 

1.0

 

 

 

(2.6

)

 

 

61.5

 

Interest income

 

 

(2.2

)

 

 

(2.6

)

 

 

(0.9

)

 

 

2.6

 

 

 

(3.1

)

Other expense (income), net

 

 

1.6

 

 

 

(0.1

)

 

 

 

 

 

 

 

 

1.5

 

(Loss) income before income taxes

 

 

(130.5

)

 

 

97.0

 

 

 

17.2

 

 

 

 

 

 

(16.3

)

Income taxes (benefit)

 

 

(50.2

)

 

 

36.5

 

 

 

3.4

 

 

 

 

 

 

(10.3

)

Equity in net income (loss) of subsidiaries

 

 

74.3

 

 

 

13.8

 

 

 

 

 

 

(88.1

)

 

 

 

Net (loss) income

 

$

(6.0

)

 

$

74.3

 

 

$

13.8

 

 

$

(88.1

)

 

$

(6.0

)

 

 

Condensed Supplemental Consolidating Statement of Operations

Six Months Ended June 30, 2016

(In millions)

 

 

 

Parent

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

 

 

 

 

 

Company

 

 

Subsidiaries

 

 

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Net sales

 

$

 

 

$

2,659.3

 

 

$

292.8

 

 

$

(140.5

)

 

$

2,811.6

 

Cost of sales

 

 

 

 

 

2,207.8

 

 

 

253.9

 

 

 

(140.5

)

 

 

2,321.2

 

Gross profit

 

 

 

 

 

451.5

 

 

 

38.9

 

 

 

 

 

 

490.4

 

Selling, general, and administrative expense

 

 

76.6

 

 

 

259.6

 

 

 

26.3

 

 

 

 

 

 

362.5

 

Amortization expense

 

 

4.5

 

 

 

43.2

 

 

 

4.6

 

 

 

 

 

 

52.3

 

Other operating expense, net

 

 

 

 

 

4.1

 

 

 

0.9

 

 

 

 

 

 

5.0

 

Operating (loss) income

 

 

(81.1

)

 

 

144.6

 

 

 

7.1

 

 

 

 

 

 

70.6

 

Interest expense

 

 

56.4

 

 

 

0.3

 

 

 

2.9

 

 

 

(2.4

)

 

 

57.2

 

Interest income

 

 

(2.2

)

 

 

(2.9

)

 

 

(0.7

)

 

 

2.4

 

 

 

(3.4

)

Other (income) expense, net

 

 

 

 

 

(2.0

)

 

 

1.4

 

 

 

 

 

 

(0.6

)

(Loss) income before income taxes

 

 

(135.3

)

 

 

149.2

 

 

 

3.5

 

 

 

 

 

 

17.4

 

Income taxes (benefit)

 

 

(51.3

)

 

 

54.7

 

 

 

(1.8

)

 

 

 

 

 

1.6

 

Equity in net income (loss) of subsidiaries

 

 

99.8

 

 

 

5.3

 

 

 

 

 

 

(105.1

)

 

 

 

Net income (loss)

 

$

15.8

 

 

$

99.8

 

 

$

5.3

 

 

$

(105.1

)

 

$

15.8

 

 

Condensed Supplemental Consolidating Statement of Comprehensive Income (Loss)

Three Months Ended June 30, 2017

(In millions)

 

 

 

Parent

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

 

 

 

 

 

Company

 

 

Subsidiaries

 

 

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Net (loss) income

 

$

(34.2

)

 

$

9.4

 

 

$

8.6

 

 

$

(18.0

)

 

$

(34.2

)

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

 

 

 

 

 

 

12.9

 

 

 

 

 

 

12.9

 

Pension and postretirement reclassification

   adjustment, net of tax

 

 

 

 

 

6.8

 

 

 

 

 

 

 

 

 

6.8

 

Other comprehensive income

 

 

 

 

 

6.8

 

 

 

12.9

 

 

 

 

 

 

19.7

 

Equity in other comprehensive income (loss) of

   subsidiaries

 

 

19.7

 

 

 

12.9

 

 

 

 

 

 

(32.6

)

 

 

 

Comprehensive (loss) income

 

$

(14.5

)

 

$

29.1

 

 

$

21.5

 

 

$

(50.6

)

 

$

(14.5

)

 

 

Condensed Supplemental Consolidating Statement of Comprehensive Income (Loss)

Three Months Ended June 30, 2016

(In millions)

 

 

 

Parent

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

 

 

 

 

 

Company

 

 

Subsidiaries

 

 

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Net income (loss)

 

$

19.0

 

 

$

53.9

 

 

$

6.1

 

 

$

(60.0

)

 

$

19.0

 

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

 

 

 

 

 

 

4.6

 

 

 

 

 

 

4.6

 

Pension and postretirement reclassification

   adjustment, net of tax

 

 

 

 

 

0.2

 

 

 

 

 

 

 

 

 

0.2

 

Other comprehensive income

 

 

 

 

 

0.2

 

 

 

4.6

 

 

 

 

 

 

4.8

 

Equity in other comprehensive income (loss) of

   subsidiaries

 

 

4.8

 

 

 

4.6

 

 

 

 

 

 

(9.4

)

 

 

 

Comprehensive income (loss)

 

$

23.8

 

 

$

58.7

 

 

$

10.7

 

 

$

(69.4

)

 

$

23.8

 

 

Condensed Supplemental Consolidating Statement of Comprehensive Income (Loss)

Six Months Ended June 30, 2017

(In millions)

 

 

 

Parent

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

 

 

 

 

 

Company

 

 

Subsidiaries

 

 

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Net (loss) income

 

$

(6.0

)

 

$

74.3

 

 

$

13.8

 

 

$

(88.1

)

 

$

(6.0

)

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

 

 

 

 

 

 

16.5

 

 

 

 

 

 

16.5

 

Pension and postretirement reclassification

   adjustment, net of tax

 

 

 

 

 

7.1

 

 

 

 

 

 

 

 

 

7.1

 

Other comprehensive income

 

 

 

 

 

7.1

 

 

 

16.5

 

 

 

 

 

 

23.6

 

Equity in other comprehensive income (loss) of

   subsidiaries

 

 

23.6

 

 

 

16.5

 

 

 

 

 

 

(40.1

)

 

 

 

Comprehensive income (loss)

 

$

17.6

 

 

$

97.9

 

 

$

30.3

 

 

$

(128.2

)

 

$

17.6

 

 

 

Condensed Supplemental Consolidating Statement of Comprehensive Income (Loss)

Six Months Ended June 30, 2016

(In millions)

 

 

 

Parent

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

 

 

 

 

 

Company

 

 

Subsidiaries

 

 

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Net income (loss)

 

$

15.8

 

 

$

99.8

 

 

$

5.3

 

 

$

(105.1

)

 

$

15.8

 

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

 

 

 

 

 

 

28.9

 

 

 

 

 

 

28.9

 

Pension and postretirement reclassification

   adjustment, net of tax

 

 

 

 

 

0.5

 

 

 

 

 

 

 

 

 

0.5

 

Other comprehensive income

 

 

 

 

 

0.5

 

 

 

28.9

 

 

 

 

 

 

29.4

 

Equity in other comprehensive income (loss) of

   subsidiaries

 

 

29.4

 

 

 

28.9

 

 

 

 

 

 

(58.3

)

 

 

 

Comprehensive income (loss)

 

$

45.2

 

 

$

129.2

 

 

$

34.2

 

 

$

(163.4

)

 

$

45.2

 

Condensed Supplemental Consolidating Statement of Cash Flows

Six Months Ended June 30, 2017

(In millions)

 

 

 

Parent

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

 

 

 

 

 

Company

 

 

Subsidiaries

 

 

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating

   activities

 

$

(0.4

)

 

$

400.5

 

 

$

8.1

 

 

$

(80.8

)

 

$

327.4

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additions to property, plant, and equipment

 

 

(1.3

)

 

 

(62.2

)

 

 

(7.9

)

 

 

 

 

 

(71.4

)

Additions to intangible assets

 

 

(13.3

)

 

 

(0.7

)

 

 

 

 

 

 

 

 

(14.0

)

Intercompany transfer

 

 

189.7

 

 

 

(87.3

)

 

 

(0.1

)

 

 

(102.3

)

 

 

 

Proceeds from sale of fixed assets

 

 

 

 

 

1.7

 

 

 

 

 

 

 

 

 

1.7

 

Proceeds from divestiture

 

 

 

 

 

19.0

 

 

 

0.3

 

 

 

 

 

 

19.3

 

Other

 

 

 

 

 

 

 

 

(0.6

)

 

 

 

 

 

(0.6

)

Net cash provided by (used in) investing

   activities

 

 

175.1

 

 

 

(129.5

)

 

 

(8.3

)

 

 

(102.3

)

 

 

(65.0

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net borrowing (repayment) of debt

 

 

(152.7

)

 

 

(1.9

)

 

 

 

 

 

 

 

 

(154.6

)

Intercompany transfer

 

 

81.7

 

 

 

(269.1

)

 

 

4.3

 

 

 

183.1

 

 

 

 

Receipts related to stock-based award activities

 

 

9.9

 

 

 

 

 

 

 

 

 

 

 

 

9.9

 

Payments related to stock-based award activities

 

 

(6.6

)

 

 

 

 

 

 

 

 

 

 

 

(6.6

)

Net cash provided by (used in) financing

   activities

 

 

(67.7

)

 

 

(271.0

)

 

 

4.3

 

 

 

183.1

 

 

 

(151.3

)

Effect of exchange rate changes on cash and

   cash equivalents

 

 

 

 

 

 

 

 

1.0

 

 

 

 

 

 

1.0

 

Increase in cash and cash equivalents

 

 

107.0

 

 

 

 

 

 

5.1

 

 

 

 

 

 

112.1

 

Cash and cash equivalents, beginning of period

 

 

 

 

 

0.2

 

 

 

61.9

 

 

 

 

 

 

62.1

 

Cash and cash equivalents, end of period

 

$

107.0

 

 

$

0.2

 

 

$

67.0

 

 

$

 

 

$

174.2

 

 

Condensed Supplemental Consolidating Statement of Cash Flows

Six Months Ended June 30, 2016

(In millions)

 

 

 

Parent

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

 

 

 

 

 

Company

 

 

Subsidiaries

 

 

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in)  operating

   activities

 

$

52.8

 

 

$

300.2

 

 

$

(7.8

)

 

$

(104.7

)

 

$

240.5

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additions to property, plant, and equipment

 

 

(1.1

)

 

 

(73.9

)

 

 

(9.0

)

 

 

 

 

 

(84.0

)

Additions to intangible assets

 

 

(5.9

)

 

 

 

 

 

 

 

 

 

 

 

(5.9

)

Intercompany transfer

 

 

98.5

 

 

 

(30.7

)

 

 

 

 

 

(67.8

)

 

 

 

Acquisitions, less cash acquired

 

 

(2,683.5

)

 

 

0.3

 

 

 

43.0

 

 

 

 

 

 

(2,640.2

)

Proceeds from sale of fixed assets

 

 

 

 

 

0.1

 

 

 

 

 

 

 

 

 

0.1

 

Other

 

 

 

 

 

(0.6

)

 

 

(0.5

)

 

 

 

 

 

(1.1

)

Net cash provided by (used in) investing

   activities

 

 

(2,592.0

)

 

 

(104.8

)

 

 

33.5

 

 

 

(67.8

)

 

 

(2,731.1

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net borrowing (repayment) of debt

 

 

1,702.9

 

 

 

(2.1

)

 

 

 

 

 

 

 

 

1,700.8

 

Payment of deferred financing costs

 

 

(34.3

)

 

 

 

 

 

 

 

 

 

 

 

(34.3

)

Intercompany transfer

 

 

25.9

 

 

 

(192.7

)

 

 

(5.7

)

 

 

172.5

 

 

 

 

Net proceeds from issuance of common stock

 

 

835.1

 

 

 

 

 

 

 

 

 

 

 

 

835.1

 

Receipts related to stock-based award activities

 

 

7.0

 

 

 

 

 

 

 

 

 

 

 

 

7.0

 

Payments related to stock-based award activities

 

 

(7.8

)

 

 

 

 

 

 

 

 

 

 

 

(7.8

)

Net cash provided by (used in) financing

   activities

 

 

2,528.8

 

 

 

(194.8

)

 

 

(5.7

)

 

 

172.5

 

 

 

2,500.8

 

Effect of exchange rate changes on cash and

   cash equivalents

 

 

 

 

 

 

 

 

6.5

 

 

 

 

 

 

6.5

 

(Decrease) increase in cash and cash equivalents

 

 

(10.4

)

 

 

0.6

 

 

 

26.5

 

 

 

 

 

 

16.7

 

Cash and cash equivalents, beginning of period

 

 

10.4

 

 

 

0.1

 

 

 

24.4

 

 

 

 

 

 

34.9

 

Cash and cash equivalents, end of period

 

$

 

 

$

0.7

 

 

$

50.9

 

 

$

 

 

$

51.6

 

 

v3.7.0.1
Subsequent Events
6 Months Ended
Jun. 30, 2017
Subsequent Events [Abstract]  
Subsequent Events

24. SUBSEQUENT EVENTS

 

On August 3, 2017, the Company announced the TreeHouse 2020 restructuring plan, which will be executed in multiple phases over the next several years. The key elements of Phase 1 include the closure of the Company’s Brooklyn Park, Minnesota and Plymouth, Indiana facilities as well as the downsizing of the Dothan, Alabama facility. Production at the Brooklyn Park, Minnesota and Plymouth, Indiana facilities is expected to cease in the fourth quarter of 2017. The facility downsizing at Dothan, Alabama is expected to be complete in the third quarter of 2018.

Total costs related to the announced facility actions described above are expected to be approximately $44.5 million, of which approximately $29.7 million is expected to be in cash. Components of the charges include non-cash asset write-offs of approximately $14.8 million, employee-related costs of approximately $7.0 million, and other closure costs of approximately $22.7 million.

 

v3.7.0.1
Restructuring (Tables)
6 Months Ended
Jun. 30, 2017
Restructuring And Related Activities [Abstract]  
Schedule of Facility Closures

The key information regarding the Company’s announced facility closures is outlined in the table below.

 

Facility Location

 

Date of Closure

Announcement

 

End of

Production

 

Full Facility

Closure

 

Primary Products

Produced

 

Primary Segment(s)

Affected

 

Total

Costs to

Close

 

 

Total

Cash

Costs (Proceeds) to

Close

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions)

 

City of Industry, California

 

November 18, 2015

 

First quarter of 2016

 

Third quarter of 2016

 

Liquid non-dairy creamer and refrigerated salad dressings

 

Beverages, Condiments

 

$

6.9

 

 

$

3.8

 

Ayer, Massachusetts

 

April 5, 2016

 

First quarter of 2017

 

Third quarter of 2017

 

Spoonable dressings

 

Condiments

 

 

6.1

 

 

 

3.3

 

Azusa, California

 

May 24, 2016

 

First quarter of 2017

 

Third quarter of 2017

 

Bars and snack products

 

Snacks

 

 

18.5

 

 

 

15.1

 

Ripon, Wisconsin

 

May 24, 2016

 

Fourth quarter of 2016

 

Fourth quarter of 2016

 

Sugar wafer cookies

 

Baked Goods

 

 

0.8

 

 

 

(0.2

)

Delta, British Columbia

 

November 3, 2016

 

Fourth quarter of 2017

 

First quarter of 2018

 

Frozen griddle products

 

Baked Goods

 

 

3.3

 

 

 

2.3

 

Battle Creek, Michigan

 

November 3, 2016

 

(1)

 

(1)

 

Ready-to-eat cereal

 

Meals

 

 

10.4

 

 

 

2.8

 

 

 

(1)

The downsizing of this facility began in January 2017 and is expected to last approximately 15 months.

Aggregate Expenses Incurred Associated with Facility Closure

Below is a summary of the plant closing costs:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

Cumulative Costs

 

 

Total Expected

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

To Date

 

 

Costs

 

 

 

(In millions)

 

Asset-related

 

$

(0.9

)

 

$

0.7

 

 

$

3.5

 

 

$

1.5

 

 

$

13.7

 

 

$

16.8

 

Employee-related

 

 

0.2

 

 

 

1.3

 

 

 

2.7

 

 

 

1.9

 

 

 

10.0

 

 

 

11.8

 

Other closure costs

 

 

7.8

 

 

 

1.0

 

 

 

10.3

 

 

 

1.1

 

 

 

14.8

 

 

 

17.4

 

Total

 

$

7.1

 

 

$

3.0

 

 

$

16.5

 

 

$

4.5

 

 

$

38.5

 

 

$

46.0

 

 

Reconciliation of Liabilities

The table below presents a reconciliation of the liabilities as of June 30, 2017:

 

 

 

Severance

 

 

Multiemployer Pension

Plan Withdrawal

 

 

Other Costs

 

 

Total Liabilities

 

 

 

(In millions)

 

Balance as of December 31, 2016

 

$

3.5

 

 

$

0.8

 

 

$

 

 

$

4.3

 

Expense

 

 

2.4

 

 

 

 

 

 

2.4

 

 

 

4.8

 

Payments

 

 

(3.2

)

 

 

 

 

 

 

 

 

(3.2

)

Adjustments

 

 

(0.3

)

 

 

 

 

 

 

 

 

(0.3

)

Balance as of June 30, 2017

 

$

2.4

 

 

$

0.8

 

 

$

2.4

 

 

$

5.6

 

 

v3.7.0.1
Acquisitions (Tables) - Private brands business of ConAgra Foods
6 Months Ended
Jun. 30, 2017
Purchase Price Allocation to Net Tangible and Intangible Assets Acquired and Liabilities Assumed

We have completed the purchase price allocation to net tangible and intangible assets acquired and liabilities assumed as follows:

 

 

(In millions)

 

Cash

$

43.3

 

Receivables

 

162.7

 

Inventory

 

443.7

 

Property, plant, and equipment

 

809.6

 

Customer relationships

 

510.9

 

Trade names

 

33.0

 

Software

 

19.6

 

Formulas

 

23.2

 

Other assets

 

50.2

 

Goodwill

 

1,141.2

 

Assets acquired

 

3,237.4

 

Deferred taxes

 

(152.8

)

Assumed current liabilities

 

(246.6

)

Assumed long-term liabilities

 

(150.3

)

Total purchase price

$

2,687.7

 

 

Business Acquisition Pro Forma Information

The following unaudited pro forma information shows the results of operations for the Company as if its acquisition of the Private Brands Business had been completed as of January 1, 2016. Adjustments have been made for the pro forma effects of depreciation and amortization of tangible and intangible assets recognized as part of the business combination, the issuance of common stock, interest expense related to the financing of the business combination, and related income taxes. Excluded from the 2016 pro forma results are $35.2 million of costs incurred by the Company in connection with the acquisition. The pro forma results may not necessarily reflect actual results of operations that would have been achieved, nor are they necessarily indicative of future results of operations.

 

 

 

Six Months Ended

June 30, 2016

 

 

 

(In millions, except

per share data)

 

Pro forma net sales

 

$

3,135.5

 

Pro forma net income

 

$

37.5

 

Pro forma basic earnings per common share

 

$

0.66

 

Pro forma diluted earnings per common share

 

$

0.65

 

 

v3.7.0.1
Investments (Tables)
6 Months Ended
Jun. 30, 2017
Investments Schedule [Abstract]  
Investments

 

 

 

June 30,

 

 

December 31,

 

 

 

2017

 

 

2016

 

 

 

(In millions)

 

U.S. equity

 

$

8.9

 

 

$

7.6

 

Non-U.S. equity

 

 

2.1

 

 

 

1.8

 

Fixed income

 

 

1.1

 

 

 

1.0

 

Total investments

 

$

12.1

 

 

$

10.4

 

 

v3.7.0.1
Inventories (Tables)
6 Months Ended
Jun. 30, 2017
Inventory Disclosure [Abstract]  
Inventories

 

v3.7.0.1
Property, Plant, and Equipment (Tables)
6 Months Ended
Jun. 30, 2017
Property Plant And Equipment [Abstract]  
Property, Plant, and Equipment

 

 

 

June 30,

 

 

December 31,

 

 

 

2017

 

 

2016

 

 

 

(In millions)

 

Land

 

$

70.0

 

 

$

71.2

 

Buildings and improvements

 

 

451.1

 

 

 

465.3

 

Machinery and equipment

 

 

1,250.5

 

 

 

1,324.5

 

Construction in progress

 

 

68.0

 

 

 

85.0

 

Total

 

 

1,839.6

 

 

 

1,946.0

 

Less accumulated depreciation

 

 

(543.3

)

 

 

(586.7

)

Property, plant, and equipment, net

 

$

1,296.3

 

 

$

1,359.3

 

 

v3.7.0.1
Goodwill and Intangible Assets (Tables)
6 Months Ended
Jun. 30, 2017
Goodwill And Intangible Assets Disclosure [Abstract]  
Changes in Carrying Amount of Goodwill

Changes in the carrying amount of goodwill for the six months ended June 30, 2017 are as follows:

 

 

 

Baked

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goods

 

 

Beverages

 

 

Condiments

 

 

Meals

 

 

Snacks

 

 

Total

 

 

 

(In millions)

 

Balance at January 1, 2017

 

$

554.2

 

 

$

713.2

 

 

$

433.1

 

 

$

470.6

 

 

$

276.1

 

 

$

2,447.2

 

Purchase price adjustments

 

 

1.4

 

 

 

 

 

 

0.2

 

 

 

1.1

 

 

 

0.3

 

 

 

3.0

 

Foreign currency exchange adjustments

 

 

 

 

 

1.7

 

 

 

2.3

 

 

 

 

 

 

 

 

 

4.0

 

Balance at June 30, 2017

 

$

555.6

 

 

$

714.9

 

 

$

435.6

 

 

$

471.7

 

 

$

276.4

 

 

$

2,454.2

 

 

Carrying Amounts of Indefinite Lives Intangible Assets Other Than Goodwill

The carrying amounts of our intangible assets with indefinite lives, other than goodwill, as of June 30, 2017 and December 31, 2016 are as follows:

 

 

 

June 30,

2017

 

 

December 31,

2016

 

 

 

(In millions)

 

Trademarks

 

$

22.1

 

 

$

21.6

 

Total indefinite lived intangibles

 

$

22.1

 

 

$

21.6

 

 

Gross Carrying Amounts and Accumulated Amortization of Intangible Assets, with Finite Lives

The gross carrying amounts and accumulated amortization of intangible assets, with finite lives, as of June 30, 2017 and December 31, 2016 are as follows:

 

 

 

June 30, 2017

 

 

December 31, 2016

 

 

 

Gross

 

 

 

 

 

 

Net

 

 

Gross

 

 

 

 

 

 

Net

 

 

 

Carrying

 

 

Accumulated

 

 

Carrying

 

 

Carrying

 

 

Accumulated

 

 

Carrying

 

 

 

Amount

 

 

Amortization

 

 

Amount

 

 

Amount

 

 

Amortization

 

 

Amount

 

 

 

(In millions)

 

 

(In millions)

 

Intangible assets with finite lives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer-related

 

$

1,260.8

 

 

$

(317.4

)

 

$

943.4

 

 

$

1,284.3

 

 

$

(293.3

)

 

$

991.0

 

Contractual agreements

 

 

3.0

 

 

 

(2.9

)

 

 

0.1

 

 

 

3.0

 

 

 

(2.9

)

 

 

0.1

 

Trademarks

 

 

69.4

 

 

 

(26.0

)

 

 

43.4

 

 

 

69.6

 

 

 

(23.6

)

 

 

46.0

 

Formulas/recipes

 

 

33.8

 

 

 

(15.6

)

 

 

18.2

 

 

 

33.7

 

 

 

(12.8

)

 

 

20.9

 

Computer software

 

 

128.6

 

 

 

(66.4

)

 

 

62.2

 

 

 

115.7

 

 

 

(57.7

)

 

 

58.0

 

Total finite lived intangibles

 

$

1,495.6

 

 

$

(428.3

)

 

$

1,067.3

 

 

$

1,506.3

 

 

$

(390.3

)

 

$

1,116.0

 

 

Estimated Amortization Expense on Intangible Assets

Estimated amortization expense on intangible assets for 2017 and the next four years is as follows:

 

 

 

(In millions)

 

2017

 

$

114.2

 

2018

 

 

108.1

 

2019

 

 

105.5

 

2020

 

 

103.0

 

2021

 

 

93.8

 

 

v3.7.0.1
Accounts Payable and Accrued Expenses (Tables)
6 Months Ended
Jun. 30, 2017
Payables And Accruals [Abstract]  
Accounts Payable and Accrued Expenses

 

 

 

June 30,

 

 

December 31,

 

 

 

2017

 

 

2016

 

 

 

(In millions)

 

Accounts payable

 

$

576.8

 

 

$

458.1

 

Payroll and benefits

 

 

57.2

 

 

 

78.5

 

Interest

 

 

23.7

 

 

 

24.1

 

Taxes

 

 

10.2

 

 

 

31.0

 

Health insurance, workers’ compensation, and other insurance costs

 

 

26.3

 

 

 

17.2

 

Marketing expenses

 

 

9.6

 

 

 

12.4

 

Other accrued liabilities

 

 

8.3

 

 

 

5.5

 

Total

 

$

712.1

 

 

$

626.8

 

 

v3.7.0.1
Long-Term Debt (Tables)
6 Months Ended
Jun. 30, 2017
Debt Disclosure [Abstract]  
Long-Term Debt

 

 

 

June 30,

 

 

December 31,

 

 

 

2017

 

 

2016

 

 

 

(In millions)

 

Revolving Credit Facility

 

$

49.0

 

 

$

170.0

 

Term Loan A

 

 

280.5

 

 

 

288.0

 

Term Loan A-1

 

 

175.0

 

 

 

180.0

 

Term Loan A-2

 

 

986.6

 

 

 

1,005.8

 

2022 Notes

 

 

400.0

 

 

 

400.0

 

2024 Notes

 

 

775.0

 

 

 

775.0

 

Other debt

 

 

3.1

 

 

 

5.7

 

Total outstanding debt

 

 

2,669.2

 

 

 

2,824.5

 

Deferred financing costs

 

 

(29.9

)

 

 

(33.3

)

Less current portion

 

 

(70.9

)

 

 

(66.4

)

Total long-term debt

 

$

2,568.4

 

 

$

2,724.8

 

 

v3.7.0.1
Earnings Per Share (Tables)
6 Months Ended
Jun. 30, 2017
Earnings Per Share [Abstract]  
Summary of Effect of Share-Based Compensation Awards on Weighted Average Number of Shares Outstanding Used in Calculating Diluted Earnings Per Share

The following table summarizes the effect of the share-based compensation awards on the weighted average number of shares outstanding used in calculating diluted earnings per share:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

(In millions, except per share data)

 

Net (loss) income

 

$

(34.2

)

 

$

19.0

 

 

$

(6.0

)

 

$

15.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

57.0

 

 

 

56.6

 

 

 

57.0

 

 

 

54.6

 

Assumed exercise/vesting of equity awards (1)

 

 

 

 

 

0.9

 

 

 

 

 

 

0.9

 

Weighted average diluted common shares outstanding

 

 

57.0

 

 

 

57.5

 

 

 

57.0

 

 

 

55.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) earnings per basic share

 

$

(0.60

)

 

$

0.34

 

 

$

(0.11

)

 

$

0.29

 

Net (loss) earnings per diluted share

 

$

(0.60

)

 

$

0.33

 

 

$

(0.11

)

 

$

0.28

 

 

(1)

Incremental shares from equity awards are computed using the treasury stock method. For the three and six months ended June 30, 2017, weighted average common shares outstanding is the same for the computations of basic and diluted earnings per share because the Company had a net loss for the periods. Equity awards, excluded from our computation of diluted earnings per share because they were anti-dilutive, were 1.1 million and 1.6 million for the three and six months ended June 30, 2017, respectively, and 0.7 million and 1.0 million for the three and six months ended June 30, 2016, respectively.

v3.7.0.1
Stock-Based Compensation (Tables)
6 Months Ended
Jun. 30, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Summary of Stock Option Activity

The following table summarizes stock option activity during the six months ended June 30, 2017.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

Average

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average

 

 

Remaining

 

 

Aggregate

 

 

 

Employee

 

 

Director

 

 

Exercise

 

 

Contractual

 

 

Intrinsic

 

 

 

Options

 

 

Options

 

 

Price

 

 

Term (yrs)

 

 

Value

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

(In millions)

 

Outstanding, at December 31, 2016

 

 

2,069

 

 

 

20

 

 

$

64.77

 

 

 

5.8

 

 

$

28.9

 

Granted

 

 

452

 

 

 

 

 

 

84.53

 

 

 

 

 

 

 

 

 

Forfeited

 

 

(58

)

 

 

 

 

 

87.93

 

 

 

 

 

 

 

 

 

Exercised

 

 

(228

)

 

 

(16

)

 

 

40.51

 

 

 

 

 

 

 

 

 

Expired

 

 

(2

)

 

 

 

 

 

85.17

 

 

 

 

 

 

 

 

 

Outstanding, at June 30, 2017

 

 

2,233

 

 

 

4

 

 

 

70.81

 

 

 

6.6

 

 

 

31.5

 

Vested/expected to vest, at June 30, 2017

 

 

2,149

 

 

 

4

 

 

 

70.19

 

 

 

6.4

 

 

 

31.4

 

Exercisable, at June 30, 2017

 

 

1,425

 

 

 

4

 

 

 

61.53

 

 

 

5.0

 

 

 

30.7

 

 

Highlight of Stock Options Activity

 

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

(In millions)

 

 

(In millions)

 

Compensation expense

 

$

2.8

 

 

$

1.9

 

 

$

4.6

 

 

$

3.5

 

Intrinsic value of stock options exercised

 

 

5.6

 

 

 

4.7

 

 

 

10.1

 

 

 

6.0

 

Tax benefit recognized from stock option exercises

 

 

2.2

 

 

 

1.7

 

 

 

3.9

 

 

 

2.1

 

 

Summary of Restricted Stock Unit Activity

The following table summarizes the restricted stock unit activity during the six months ended June 30, 2017:

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

Weighted

 

 

 

Employee

 

 

Average

 

 

Director

 

 

Average

 

 

 

Restricted

 

 

Grant Date

 

 

Restricted

 

 

Grant Date

 

 

 

Stock Units

 

 

Fair Value

 

 

Stock Units

 

 

Fair Value

 

 

 

(In thousands)

 

 

 

 

 

 

(In thousands)

 

 

 

 

 

Outstanding, at December 31, 2016

 

 

516

 

 

$

87.03

 

 

 

104

 

 

$

57.78

 

Granted

 

 

265

 

 

 

83.97

 

 

 

17

 

 

 

84.66

 

Vested

 

 

(163

)

 

 

85.17

 

 

 

(2

)

 

 

98.28

 

Forfeited

 

 

(44

)

 

 

87.32

 

 

 

 

 

 

 

Outstanding, at June 30, 2017

 

 

574

 

 

 

86.11

 

 

 

119

 

 

 

60.86

 

 

Highlights of Restricted Stock Unit Activity

 

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

(In millions)

 

 

(In millions)

 

Compensation expense

 

$

7.1

 

 

$

4.5

 

 

$

11.8

 

 

$

8.0

 

Fair value of vested restricted stock units

 

 

10.1

 

 

 

12.9

 

 

 

13.0

 

 

 

13.1

 

Tax benefit recognized from vested restricted stock units

 

 

3.7

 

 

 

4.6

 

 

 

4.8

 

 

 

4.7

 

 

Summary of Performance Unit Activity

The following table summarizes the performance unit activity during the six months ended June 30, 2017:

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

Average

 

 

 

Performance

 

 

Grant Date

 

 

 

Units

 

 

Fair Value

 

 

 

(In thousands)

 

 

 

 

 

Unvested, at December 31, 2016

 

 

246

 

 

$

85.16

 

Granted

 

 

114

 

 

 

84.66

 

Vested

 

 

(72

)

 

 

79.89

 

Forfeited

 

 

(10

)

 

 

88.10

 

Unvested, at June 30, 2017

 

 

278

 

 

 

86.21

 

 

Highlight of Performance Unit Activity

 

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

(In millions)

 

 

(In millions)

 

Compensation expense

 

$

1.2

 

 

$

1.7

 

 

$

2.2

 

 

$

2.8

 

Fair value of vested performance units

 

 

6.5

 

 

 

11.4

 

 

 

6.5

 

 

 

11.4

 

Tax benefit recognized from performance units vested

 

 

2.5

 

 

 

4.1

 

 

 

2.5

 

 

 

4.1

 

 

v3.7.0.1
Accumulated Other Comprehensive Loss (Tables)
6 Months Ended
Jun. 30, 2017
Equity [Abstract]  
Components of Accumulated Other Comprehensive Loss Net of Tax Except for Foreign Currency Translation Adjustment

Accumulated other comprehensive loss consists of the following components, all of which are net of tax, except for the foreign currency translation adjustment:

 

 

 

 

 

 

 

Unrecognized

 

 

Accumulated

 

 

 

Foreign

 

 

Pension and

 

 

Other

 

 

 

Currency

 

 

Postretirement

 

 

Comprehensive

 

 

 

Translation (1)

 

 

Benefits (2)

 

 

Loss

 

 

 

(In millions)

 

Balance at December 31, 2016

 

$

(89.4

)

 

$

(11.9

)

 

$

(101.3

)

Other comprehensive income

 

 

16.5

 

 

 

 

 

 

16.5

 

Reclassifications from accumulated other comprehensive loss

 

 

 

 

 

7.1

 

 

 

7.1

 

Other comprehensive income

 

 

16.5

 

 

 

7.1

 

 

 

23.6

 

Balance at June 30, 2017

 

$

(72.9

)

 

$

(4.8

)

 

$

(77.7

)

 

 

 

 

 

 

 

Unrecognized

 

 

Accumulated

 

 

 

Foreign

 

 

Pension and

 

 

Other

 

 

 

Currency

 

 

Postretirement

 

 

Comprehensive

 

 

 

Translation (1)

 

 

Benefits (2)

 

 

Loss

 

 

 

(In millions)

 

Balance at December 31, 2015

 

$

(100.5

)

 

$

(13.0

)

 

$

(113.5

)

Other comprehensive income

 

 

28.9

 

 

 

 

 

 

28.9

 

Reclassifications from accumulated other comprehensive loss

 

 

 

 

 

0.5

 

 

 

0.5

 

Other comprehensive income

 

 

28.9

 

 

 

0.5

 

 

 

29.4

 

Balance at June 30, 2016

 

$

(71.6

)

 

$

(12.5

)

 

$

(84.1

)

 

 

(1)

The foreign currency translation adjustment is not net of tax, as the Company’s investments in its foreign subsidiaries are considered to be permanent.

 

(2)

The unrecognized pension and postretirement benefits reclassification is presented net of tax of $4.4 million and $0.3 million for the six months ended June 30, 2017 and 2016, respectively.

Reclassifications from Accumulated Other Comprehensive Loss

The Condensed Consolidated Statements of Operations lines impacted by reclassifications out of Accumulated other comprehensive loss are outlined below:

 

 

 

 

 

 

 

 

 

Affected line in

 

 

Reclassifications from Accumulated

 

 

the Condensed Consolidated

 

 

Other Comprehensive Loss

 

 

Statements of Operations

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

 

 

(In millions)

 

 

(In millions)

 

 

 

Amortization of defined benefit pension and postretirement items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service costs

 

$

 

 

$

 

 

$

0.1

 

 

$

0.1

 

 

(a)

Unrecognized net loss

 

 

0.2

 

 

 

0.4

 

 

 

0.6

 

 

 

0.7

 

 

(a)

Actuarial adjustment

 

 

2.1

 

 

 

 

 

 

2.1

 

 

 

 

 

(b)

Divestiture

 

 

8.7

 

 

 

 

 

 

8.7

 

 

 

 

 

Other operating expense, net

Total before tax

 

 

11.0

 

 

 

0.4

 

 

 

11.5

 

 

 

0.8

 

 

 

Income taxes

 

 

4.2

 

 

 

0.2

 

 

 

4.4

 

 

 

0.3

 

 

Income taxes

Net of tax

 

$

6.8

 

 

$

0.2

 

 

$

7.1

 

 

$

0.5

 

 

 

 

 

(a)

These accumulated other comprehensive loss components are included in the computation of net periodic pension and postretirement cost, and are recorded in the Cost of sales and General and administrative lines of the Condensed Consolidated Statements of Operations.

 

(b)

Represents the actuarial adjustment that was recorded in conjunction with the divestiture of a pension plan and a postretirement benefit plan in the second quarter of 2017.

v3.7.0.1
Employee Retirement and Postretirement Benefits (Tables)
6 Months Ended
Jun. 30, 2017
Compensation And Retirement Disclosure [Abstract]  
Summary of Net Periodic Cost of Pension and Postretirement Benefit Plans

Components of net periodic pension expense are as follows:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

(In millions)

 

 

(In millions)

 

Service cost

 

$

1.0

 

 

$

1.3

 

 

$

2.2

 

 

$

2.3

 

Interest cost

 

 

3.8

 

 

 

4.1

 

 

 

7.8

 

 

 

7.1

 

Expected return on plan assets

 

 

(4.4

)

 

 

(4.5

)

 

 

(9.1

)

 

 

(7.7

)

Amortization of unrecognized prior service cost

 

 

 

 

 

 

 

 

0.1

 

 

 

0.1

 

Amortization of unrecognized net loss

 

 

0.2

 

 

 

0.4

 

 

 

0.6

 

 

 

0.7

 

Net periodic pension cost

 

$

0.6

 

 

$

1.3

 

 

$

1.6

 

 

$

2.5

 

 

The Company does not expect to make any contributions to the pension plans in 2017.

Components of net periodic postretirement expense are as follows:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

(In millions)

 

 

(In millions)

 

Service cost

 

$

 

 

$

 

 

$

 

 

$

 

Interest cost

 

 

0.3

 

 

 

0.4

 

 

 

0.6

 

 

 

0.6

 

Amortization of unrecognized prior service cost

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of unrecognized net loss

 

 

 

 

 

 

 

 

 

 

 

 

Net periodic postretirement cost

 

$

0.3

 

 

$

0.4

 

 

$

0.6

 

 

$

0.6

 

 

v3.7.0.1
Other Operating Expense, Net (Tables)
6 Months Ended
Jun. 30, 2017
Other Income And Expenses [Abstract]  
Other Operating Expense, Net

The Company incurred other operating expense for the three and six months ended June 30, 2017 and 2016, which consisted of the following:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

(In millions)

 

 

(In millions)

 

Restructuring

 

$

8.8

 

 

$

2.5

 

 

$

15.6

 

 

$

4.1

 

Loss on divestiture

 

 

85.2

 

 

 

 

 

 

85.2

 

 

 

 

Other

 

 

 

 

 

0.8

 

 

 

 

 

 

0.9

 

Total other operating expense, net

 

$

94.0

 

 

$

3.3

 

 

$

100.8

 

 

$

5.0

 

 

v3.7.0.1
Supplemental Cash Flow Information (Tables)
6 Months Ended
Jun. 30, 2017
Supplemental Cash Flow Elements [Abstract]  
Supplemental Cash Flow Information

 

 

 

Six Months Ended

 

 

 

June 30,

 

 

 

2017

 

 

2016

 

 

 

(In millions)

 

Interest paid

 

$

56.9

 

 

$

33.3

 

Income taxes paid

 

 

21.7

 

 

 

46.4

 

Accrued purchase of property and equipment

 

 

14.9

 

 

 

11.5

 

Accrued other intangible assets

 

 

5.0

 

 

 

3.0

 

 

v3.7.0.1
Derivative Instruments (Tables)
6 Months Ended
Jun. 30, 2017
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Derivative, Fair Value, and Location on Condensed Consolidated Balance Sheet

 The following table identifies the derivative, its fair value, and location on the Condensed Consolidated Balance Sheets:

 

 

 

 

 

Fair Value

 

 

 

Balance Sheet Location

 

June 30, 2017

 

 

December 31, 2016

 

 

 

 

 

(In millions)

 

Asset Derivatives

 

 

 

 

 

 

 

 

 

 

Commodity contracts

 

Prepaid expenses and other current assets

 

$

0.5

 

 

$

1.0

 

Foreign currency contracts

 

Prepaid expenses and other current assets

 

 

0.3

 

 

 

0.7

 

Interest rate swap agreements

 

Prepaid expenses and other current assets

 

 

9.9

 

 

 

10.4

 

 

 

 

 

$

10.7

 

 

$

12.1

 

Liability Derivatives

 

 

 

 

 

 

 

 

 

 

Commodity contracts

 

Accounts payable and accrued expenses

 

$

1.2

 

 

$

0.5

 

Foreign currency contracts

 

Accounts payable and accrued expenses

 

 

0.4

 

 

 

 

 

 

 

 

$

1.6

 

 

$

0.5

 

 

Gains and Losses on Derivative Contracts

We recorded the following gains and losses on our derivative contracts in the Condensed Consolidated Statements of Operations:

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

Location of Gain (Loss)

 

June 30,

 

 

June 30,

 

 

 

Recognized in Net (Loss) Income

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

 

 

(In millions)

 

 

(In millions)

 

Mark-to-market unrealized

   gain (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity contracts

 

Other expense (income), net

 

$

(0.1

)

 

$

0.5

 

 

$

(1.2

)

 

$

0.9

 

Foreign currency contracts

 

Other expense (income), net

 

 

(0.7

)

 

 

2.8

 

 

 

(0.8

)

 

 

(2.3

)

Interest rate swap agreements

 

Other expense (income), net

 

 

(1.5

)

 

 

(1.6

)

 

 

(0.5

)

 

 

(1.6

)

Total unrealized (loss) gain

 

 

 

 

(2.3

)

 

 

1.7

 

 

 

(2.5

)

 

 

(3.0

)

Realized gain (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity contracts

 

Manufacturing related to Cost of sales and transportation related to Selling and distribution

 

 

(0.7

)

 

 

 

 

 

(0.2

)

 

 

(1.0

)

Foreign currency contracts

 

Cost of sales

 

 

1.0

 

 

 

(2.7

)

 

 

1.2

 

 

 

(1.9

)

Interest rate swap agreements

 

Interest expense

 

 

0.2

 

 

 

 

 

 

0.1

 

 

 

 

Total realized gain (loss)

 

 

 

 

0.5

 

 

 

(2.7

)

 

 

1.1

 

 

 

(2.9

)

Total loss

 

 

 

$

(1.8

)

 

$

(1.0

)

 

$

(1.4

)

 

$

(5.9

)

 

v3.7.0.1
Fair Value (Tables)
6 Months Ended
Jun. 30, 2017
Fair Value Disclosures [Abstract]  
Carrying Value and Fair Value of Financial Instruments

The following table presents the carrying value and fair value of our financial instruments as of June 30, 2017 and December 31, 2016:

 

 

 

June 30, 2017

 

 

December 31, 2016

 

 

 

 

 

 

 

Carrying

Value

 

 

Fair

Value

 

 

Carrying

Value

 

 

Fair

Value

 

 

Level

 

 

 

(In millions)

 

 

(In millions)

 

 

 

 

 

Not recorded at fair value (liability):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revolving Credit Facility

 

$

(49.0

)

 

$

(48.3

)

 

$

(170.0

)

 

$

(167.1

)

 

 

2

 

Term Loan A

 

 

(280.5

)

 

 

(280.9

)

 

 

(288.0

)

 

 

(288.1

)

 

 

2

 

Term Loan A-1

 

 

(175.0

)

 

 

(175.3

)

 

 

(180.0

)

 

 

(180.3

)

 

 

2

 

Term Loan A-2

 

 

(986.6

)

 

 

(988.3

)

 

 

(1,005.8

)

 

 

(1,007.4

)

 

 

2

 

2022 Notes

 

 

(400.0

)

 

 

(413.0

)

 

 

(400.0

)

 

 

(410.0

)

 

 

2

 

2024 Notes

 

 

(775.0

)

 

 

(825.4

)

 

 

(775.0

)

 

 

(809.9

)

 

 

2

 

Recorded on a recurring basis at fair value

   (liability) asset:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity contracts

 

$

(0.7

)

 

$

(0.7

)

 

$

0.5

 

 

$

0.5

 

 

 

2

 

Foreign currency contracts

 

 

(0.1

)

 

 

(0.1

)

 

 

0.7

 

 

 

0.7

 

 

 

2

 

Interest rate swap agreements

 

 

9.9

 

 

 

9.9

 

 

 

10.4

 

 

 

10.4

 

 

 

2

 

Investments

 

 

12.1

 

 

 

12.1

 

 

 

10.4

 

 

 

10.4

 

 

 

1

 

 

v3.7.0.1
Segment and Geographic Information and Major Customers (Tables)
6 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
Financial Information Relating to Reportable Segments

Financial information relating to the Company’s reportable segments is as follows:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

(In millions)

 

 

(In millions)

 

Net sales to external customers:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baked Goods

 

$

324.3

 

 

$

322.9

 

 

$

665.4

 

 

$

542.4

 

Beverages

 

 

246.2

 

 

 

212.9

 

 

 

514.2

 

 

 

437.8

 

Condiments

 

 

344.9

 

 

 

340.5

 

 

 

655.0

 

 

 

636.1

 

Meals

 

 

288.4

 

 

 

317.0

 

 

 

612.4

 

 

 

589.4

 

Snacks

 

 

317.0

 

 

 

358.0

 

 

 

607.6

 

 

 

615.8

 

Unallocated

 

 

1.4

 

 

 

(9.9

)

 

 

3.8

 

 

 

(9.9

)

Total

 

$

1,522.2

 

 

$

1,541.4

 

 

$

3,058.4

 

 

$

2,811.6

 

Direct operating income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baked Goods

 

$

32.5

 

 

$

34.8

 

 

$

74.4

 

 

$

63.6

 

Beverages

 

 

60.3

 

 

 

54.1

 

 

 

119.0

 

 

 

111.8

 

Condiments

 

 

36.0

 

 

 

41.9

 

 

 

67.7

 

 

 

77.0

 

Meals

 

 

33.8

 

 

 

29.4

 

 

 

67.8

 

 

 

55.8

 

Snacks

 

 

10.1

 

 

 

19.0

 

 

 

22.6

 

 

 

28.8

 

Total

 

 

172.7

 

 

 

179.2

 

 

 

351.5

 

 

 

337.0

 

Unallocated selling, general, and administrative expenses

 

 

(82.0

)

 

 

(79.2

)

 

 

(162.0

)

 

 

(179.9

)

Unallocated cost of sales (1)

 

 

6.9

 

 

 

(6.7

)

 

 

8.4

 

 

 

(19.3

)

Unallocated corporate expense and other

 

 

(121.3

)

 

 

(41.7

)

 

 

(154.3

)

 

 

(67.2

)

Operating (loss) income

 

 

(23.7

)

 

 

51.6

 

 

 

43.6

 

 

 

70.6

 

Other expense

 

 

(32.3

)

 

 

(29.4

)

 

 

(59.9

)

 

 

(53.2

)

(Loss) income before income taxes

 

$

(56.0

)

 

$

22.2

 

 

$

(16.3

)

 

$

17.4

 

 

 

(1)

Includes charges related to restructurings and other costs managed at corporate.

Net Sales by Major Products

Product Information — The following table presents the Company’s net sales by major products for the three and six months ended June 30, 2017 and 2016. In the first quarter of 2017, the Company changed the product categories to align with the changes in organizational structure described above. All prior period information has been recast to reflect this change.

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

(In millions)

 

 

(In millions)

 

Products:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dressings and sauces

 

$

250.9

 

 

$

248.1

 

 

$

488.2

 

 

$

469.4

 

Snack nuts

 

 

196.5

 

 

 

205.7

 

 

 

384.2

 

 

 

348.0

 

Beverages

 

 

167.7

 

 

 

142.0

 

 

 

350.8

 

 

 

286.1

 

Retail bakery

 

 

162.0

 

 

 

159.0

 

 

 

344.6

 

 

 

272.3

 

Cereals and other meals

 

 

149.2

 

 

 

182.1

 

 

 

339.6

 

 

 

352.0

 

Baked products

 

 

162.3

 

 

 

163.9

 

 

 

320.8

 

 

 

270.1

 

Pasta and dry dinners

 

 

139.2

 

 

 

134.9

 

 

 

272.8

 

 

 

237.4

 

Trail mix and bars

 

 

121.9

 

 

 

142.4

 

 

 

227.2

 

 

 

257.9

 

Pickles

 

 

94.0

 

 

 

92.4

 

 

 

166.8

 

 

 

166.7

 

Beverage enhancers

 

 

78.5

 

 

 

70.9

 

 

 

163.4

 

 

 

151.7

 

Total net sales

 

$

1,522.2

 

 

$

1,541.4

 

 

$

3,058.4

 

 

$

2,811.6

 

 

v3.7.0.1
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION (Tables)
6 Months Ended
Jun. 30, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Condensed Supplemental Consolidating Balance Sheet

Condensed Supplemental Consolidating Balance Sheet

June 30, 2017

(In millions)

 

 

 

Parent

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

 

 

 

 

 

Company

 

 

Subsidiaries

 

 

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

107.0

 

 

$

0.2

 

 

$

67.0

 

 

$

 

 

$

174.2

 

Investments

 

 

 

 

 

 

 

 

12.1

 

 

 

 

 

 

12.1

 

Accounts receivable, net

 

 

0.6

 

 

 

308.1

 

 

 

44.0

 

 

 

 

 

 

352.7

 

Inventories, net

 

 

 

 

 

867.8

 

 

 

125.3

 

 

 

 

 

 

993.1

 

Assets held for sale

 

 

 

 

 

2.7

 

 

 

 

 

 

 

 

 

2.7

 

Prepaid expenses and other current assets

 

 

61.3

 

 

 

13.7

 

 

 

18.1

 

 

 

 

 

 

93.1

 

Total current assets

 

 

168.9

 

 

 

1,192.5

 

 

 

266.5

 

 

 

 

 

 

1,627.9

 

Property, plant, and equipment, net

 

 

29.8

 

 

 

1,115.9

 

 

 

150.6

 

 

 

 

 

 

1,296.3

 

Goodwill

 

 

 

 

 

2,333.7

 

 

 

120.5

 

 

 

 

 

 

2,454.2

 

Investment in subsidiaries

 

 

5,129.6

 

 

 

549.2

 

 

 

 

 

 

(5,678.8

)

 

 

-

 

Intercompany accounts receivable (payable), net

 

 

(174.8

)

 

 

168.8

 

 

 

6.0

 

 

 

 

 

 

-

 

Deferred income taxes

 

 

22.0

 

 

 

 

 

 

 

 

 

(22.0

)

 

 

-

 

Intangible and other assets, net

 

 

59.7

 

 

 

966.8

 

 

 

105.0

 

 

 

 

 

 

1,131.5

 

Total assets

 

$

5,235.2

 

 

$

6,326.9

 

 

$

648.6

 

 

$

(5,700.8

)

 

$

6,509.9

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

45.2

 

 

$

599.4

 

 

$

67.5

 

 

$

 

 

$

712.1

 

Current portion of long-term debt

 

 

69.5

 

 

 

1.3

 

 

 

0.1

 

 

 

 

 

 

70.9

 

Total current liabilities

 

 

114.7

 

 

 

600.7

 

 

 

67.6

 

 

 

 

 

 

783.0

 

Long-term debt

 

 

2,566.6

 

 

 

1.6

 

 

 

0.2

 

 

 

 

 

 

2,568.4

 

Deferred income taxes

 

 

 

 

 

406.1

 

 

 

25.9

 

 

 

(22.0

)

 

 

410.0

 

Other long-term liabilities

 

 

11.0

 

 

 

188.9

 

 

 

5.7

 

 

 

 

 

 

205.6

 

Stockholders’ equity

 

 

2,542.9

 

 

 

5,129.6

 

 

 

549.2

 

 

 

(5,678.8

)

 

 

2,542.9

 

Total liabilities and stockholders’ equity

 

$

5,235.2

 

 

$

6,326.9

 

 

$

648.6

 

 

$

(5,700.8

)

 

$

6,509.9

 

Condensed Supplemental Consolidating Balance Sheet

December 31, 2016

(In millions)

 

 

 

Parent

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

 

 

 

 

 

Company

 

 

Subsidiaries

 

 

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

 

 

$

0.2

 

 

$

61.9

 

 

$

 

 

$

62.1

 

Investments

 

 

 

 

 

 

 

 

10.4

 

 

 

 

 

 

10.4

 

Accounts receivable, net

 

 

 

 

 

372.9

 

 

 

56.1

 

 

 

 

 

 

429.0

 

Inventories, net

 

 

 

 

 

869.6

 

 

 

108.4

 

 

 

 

 

 

978.0

 

Assets held for sale

 

 

 

 

 

3.6

 

 

 

 

 

 

 

 

 

3.6

 

Prepaid expenses and other current assets

 

 

23.6

 

 

 

36.7

 

 

 

17.3

 

 

 

 

 

 

77.6

 

Total current assets

 

 

23.6

 

 

 

1,283.0

 

 

 

254.1

 

 

 

 

 

 

1,560.7

 

Property, plant, and equipment, net

 

 

31.3

 

 

 

1,181.0

 

 

 

147.0

 

 

 

 

 

 

1,359.3

 

Goodwill

 

 

 

 

 

2,330.8

 

 

 

116.4

 

 

 

 

 

 

2,447.2

 

Investment in subsidiaries

 

 

5,031.5

 

 

 

519.4

 

 

 

 

 

 

(5,550.9

)

 

 

 

Intercompany accounts receivable (payable), net

 

 

199.6

 

 

 

(196.9

)

 

 

(2.7

)

 

 

 

 

 

 

Deferred income taxes

 

 

20.7

 

 

 

 

 

 

 

 

 

(20.7

)

 

 

 

Intangible and other assets, net

 

 

53.9

 

 

 

1,018.0

 

 

 

106.7

 

 

 

 

 

 

1,178.6

 

Total assets

 

$

5,360.6

 

 

$

6,135.3

 

 

$

621.5

 

 

$

(5,571.6

)

 

$

6,545.8

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

61.3

 

 

$

493.1

 

 

$

72.4

 

 

$

 

 

$

626.8

 

Current portion of long-term debt

 

 

63.1

 

 

 

3.2

 

 

 

0.1

 

 

 

 

 

 

66.4

 

Total current liabilities

 

 

124.4

 

 

 

496.3

 

 

 

72.5

 

 

 

 

 

 

693.2

 

Long-term debt

 

 

2,722.3

 

 

 

2.2

 

 

 

0.3

 

 

 

 

 

 

2,724.8

 

Deferred income taxes

 

 

 

 

 

418.3

 

 

 

24.6

 

 

 

(20.7

)

 

 

422.2

 

Other long-term liabilities

 

 

10.6

 

 

 

187.0

 

 

 

4.7

 

 

 

 

 

 

202.3

 

Stockholders’ equity

 

 

2,503.3

 

 

 

5,031.5

 

 

 

519.4

 

 

 

(5,550.9

)

 

 

2,503.3

 

Total liabilities and stockholders’ equity

 

$

5,360.6

 

 

$

6,135.3

 

 

$

621.5

 

 

$

(5,571.6

)

 

$

6,545.8

 

 

Condensed Supplemental Consolidating Statement of Operations

Condensed Supplemental Consolidating Statement of Operations

Three Months Ended June 30, 2017

(In millions)

 

 

 

Parent

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

 

 

 

 

 

Company

 

 

Subsidiaries

 

 

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Net sales

 

$

 

 

$

1,439.9

 

 

$

158.9

 

 

$

(76.6

)

 

$

1,522.2

 

Cost of sales

 

 

 

 

 

1,187.0

 

 

 

134.9

 

 

 

(76.6

)

 

 

1,245.3

 

Gross profit

 

 

 

 

 

252.9

 

 

 

24.0

 

 

 

 

 

 

276.9

 

Selling, general, and administrative expense

 

 

34.6

 

 

 

132.9

 

 

 

10.4

 

 

 

 

 

 

177.9

 

Amortization expense

 

 

3.2

 

 

 

23.1

 

 

 

2.4

 

 

 

 

 

 

28.7

 

Other operating expense, net

 

 

 

 

 

92.8

 

 

 

1.2

 

 

 

 

 

 

94.0

 

Operating (loss) income

 

 

(37.8

)

 

 

4.1

 

 

 

10.0

 

 

 

 

 

 

(23.7

)

Interest expense

 

 

31.7

 

 

 

 

 

 

(0.2

)

 

 

0.3

 

 

 

31.8

 

Interest income

 

 

 

 

 

0.3

 

 

 

(0.3

)

 

 

(0.3

)

 

 

(0.3

)

Other expense (income), net

 

 

1.5

 

 

 

(0.1

)

 

 

(0.6

)

 

 

 

 

 

0.8

 

(Loss) income before income taxes

 

 

(71.0

)

 

 

3.9

 

 

 

11.1

 

 

 

 

 

 

(56.0

)

Income taxes (benefit)

 

 

(27.4

)

 

 

3.1

 

 

 

2.5

 

 

 

 

 

 

(21.8

)

Equity in net income (loss) of subsidiaries

 

 

9.4

 

 

 

8.6

 

 

 

 

 

 

(18.0

)

 

 

 

Net (loss) income

 

$

(34.2

)

 

$

9.4

 

 

$

8.6

 

 

$

(18.0

)

 

$

(34.2

)

 

 

Condensed Supplemental Consolidating Statement of Operations

Three Months Ended June 30, 2016

(In millions)

 

 

 

Parent

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

 

 

 

 

 

Company

 

 

Subsidiaries

 

 

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Net sales

 

$

 

 

$

1,454.5

 

 

$

159.0

 

 

$

(72.1

)

 

$

1,541.4

 

Cost of sales

 

 

 

 

 

1,210.7

 

 

 

137.0

 

 

 

(72.1

)

 

 

1,275.6

 

Gross profit

 

 

 

 

 

243.8

 

 

 

22.0

 

 

 

 

 

 

265.8

 

Selling, general, and administrative expense

 

 

22.9

 

 

 

143.2

 

 

 

16.3

 

 

 

 

 

 

182.4

 

Amortization expense

 

 

2.3

 

 

 

23.8

 

 

 

2.4

 

 

 

 

 

 

28.5

 

Other operating expense, net

 

 

 

 

 

2.8

 

 

 

0.5

 

 

 

 

 

 

3.3

 

Operating (loss) income

 

 

(25.2

)

 

 

74.0

 

 

 

2.8

 

 

 

 

 

 

51.6

 

Interest expense

 

 

31.0

 

 

 

0.4

 

 

 

1.4

 

 

 

(1.3

)

 

 

31.5

 

Interest income

 

 

 

 

 

(1.6

)

 

 

(0.3

)

 

 

1.3

 

 

 

(0.6

)

Other expense (income), net

 

 

 

 

 

2.7

 

 

 

(4.2

)

 

 

 

 

 

(1.5

)

(Loss) income before income taxes

 

 

(56.2

)

 

 

72.5

 

 

 

5.9

 

 

 

 

 

 

22.2

 

Income taxes (benefit)

 

 

(21.3

)

 

 

24.7

 

 

 

(0.2

)

 

 

 

 

 

3.2

 

Equity in net income (loss) of subsidiaries

 

 

53.9

 

 

 

6.1

 

 

 

 

 

 

(60.0

)

 

 

 

Net income (loss)

 

$

19.0

 

 

$

53.9

 

 

$

6.1

 

 

$

(60.0

)

 

$

19.0

 

 

Condensed Supplemental Consolidating Statement of Operations

Six Months Ended June 30, 2017

(In millions)

 

 

 

Parent

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

 

 

 

 

 

Company

 

 

Subsidiaries

 

 

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Net sales

 

$

 

 

$

2,895.3

 

 

$

322.9

 

 

$

(159.8

)

 

$

3,058.4

 

Cost of sales

 

 

 

 

 

2,375.4

 

 

 

279.5

 

 

 

(159.8

)

 

 

2,495.1

 

Gross profit

 

 

 

 

 

519.9

 

 

 

43.4

 

 

 

 

 

 

563.3

 

Selling, general, and administrative expense

 

 

62.1

 

 

 

279.5

 

 

 

20.0

 

 

 

 

 

 

361.6

 

Amortization expense

 

 

6.1

 

 

 

46.5

 

 

 

4.7

 

 

 

 

 

 

57.3

 

Other operating expense, net

 

 

 

 

 

99.4

 

 

 

1.4

 

 

 

 

 

 

100.8

 

Operating (loss) income

 

 

(68.2

)

 

 

94.5

 

 

 

17.3

 

 

 

 

 

 

43.6

 

Interest expense

 

 

62.9

 

 

 

0.2

 

 

 

1.0

 

 

 

(2.6

)

 

 

61.5

 

Interest income

 

 

(2.2

)

 

 

(2.6

)

 

 

(0.9

)

 

 

2.6

 

 

 

(3.1

)

Other expense (income), net

 

 

1.6

 

 

 

(0.1

)

 

 

 

 

 

 

 

 

1.5

 

(Loss) income before income taxes

 

 

(130.5

)

 

 

97.0

 

 

 

17.2

 

 

 

 

 

 

(16.3

)

Income taxes (benefit)

 

 

(50.2

)

 

 

36.5

 

 

 

3.4

 

 

 

 

 

 

(10.3

)

Equity in net income (loss) of subsidiaries

 

 

74.3

 

 

 

13.8

 

 

 

 

 

 

(88.1

)

 

 

 

Net (loss) income

 

$

(6.0

)

 

$

74.3

 

 

$

13.8

 

 

$

(88.1

)

 

$

(6.0

)

 

 

Condensed Supplemental Consolidating Statement of Operations

Six Months Ended June 30, 2016

(In millions)

 

 

 

Parent

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

 

 

 

 

 

Company

 

 

Subsidiaries

 

 

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Net sales

 

$

 

 

$

2,659.3

 

 

$

292.8

 

 

$

(140.5

)

 

$

2,811.6

 

Cost of sales

 

 

 

 

 

2,207.8

 

 

 

253.9

 

 

 

(140.5

)

 

 

2,321.2

 

Gross profit

 

 

 

 

 

451.5

 

 

 

38.9

 

 

 

 

 

 

490.4

 

Selling, general, and administrative expense

 

 

76.6

 

 

 

259.6

 

 

 

26.3

 

 

 

 

 

 

362.5

 

Amortization expense

 

 

4.5

 

 

 

43.2

 

 

 

4.6

 

 

 

 

 

 

52.3

 

Other operating expense, net

 

 

 

 

 

4.1

 

 

 

0.9

 

 

 

 

 

 

5.0

 

Operating (loss) income

 

 

(81.1

)

 

 

144.6

 

 

 

7.1

 

 

 

 

 

 

70.6

 

Interest expense

 

 

56.4

 

 

 

0.3

 

 

 

2.9

 

 

 

(2.4

)

 

 

57.2

 

Interest income

 

 

(2.2

)

 

 

(2.9

)

 

 

(0.7

)

 

 

2.4

 

 

 

(3.4

)

Other (income) expense, net

 

 

 

 

 

(2.0

)

 

 

1.4

 

 

 

 

 

 

(0.6

)

(Loss) income before income taxes

 

 

(135.3

)

 

 

149.2

 

 

 

3.5

 

 

 

 

 

 

17.4

 

Income taxes (benefit)

 

 

(51.3

)

 

 

54.7

 

 

 

(1.8

)

 

 

 

 

 

1.6

 

Equity in net income (loss) of subsidiaries

 

 

99.8

 

 

 

5.3

 

 

 

 

 

 

(105.1

)

 

 

 

Net income (loss)

 

$

15.8

 

 

$

99.8

 

 

$

5.3

 

 

$

(105.1

)

 

$

15.8

 

 

Condensed Supplemental Consolidating Statement of Comprehensive Income (Loss)

Condensed Supplemental Consolidating Statement of Comprehensive Income (Loss)

Three Months Ended June 30, 2017

(In millions)

 

 

 

Parent

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

 

 

 

 

 

Company

 

 

Subsidiaries

 

 

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Net (loss) income

 

$

(34.2

)

 

$

9.4

 

 

$

8.6

 

 

$

(18.0

)

 

$

(34.2

)

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

 

 

 

 

 

 

12.9

 

 

 

 

 

 

12.9

 

Pension and postretirement reclassification

   adjustment, net of tax

 

 

 

 

 

6.8

 

 

 

 

 

 

 

 

 

6.8

 

Other comprehensive income

 

 

 

 

 

6.8

 

 

 

12.9

 

 

 

 

 

 

19.7

 

Equity in other comprehensive income (loss) of

   subsidiaries

 

 

19.7

 

 

 

12.9

 

 

 

 

 

 

(32.6

)

 

 

 

Comprehensive (loss) income

 

$

(14.5

)

 

$

29.1

 

 

$

21.5

 

 

$

(50.6

)

 

$

(14.5

)

 

 

Condensed Supplemental Consolidating Statement of Comprehensive Income (Loss)

Three Months Ended June 30, 2016

(In millions)

 

 

 

Parent

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

 

 

 

 

 

Company

 

 

Subsidiaries

 

 

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Net income (loss)

 

$

19.0

 

 

$

53.9

 

 

$

6.1

 

 

$

(60.0

)

 

$

19.0

 

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

 

 

 

 

 

 

4.6

 

 

 

 

 

 

4.6

 

Pension and postretirement reclassification

   adjustment, net of tax

 

 

 

 

 

0.2

 

 

 

 

 

 

 

 

 

0.2

 

Other comprehensive income

 

 

 

 

 

0.2

 

 

 

4.6

 

 

 

 

 

 

4.8

 

Equity in other comprehensive income (loss) of

   subsidiaries

 

 

4.8

 

 

 

4.6

 

 

 

 

 

 

(9.4

)

 

 

 

Comprehensive income (loss)

 

$

23.8

 

 

$

58.7

 

 

$

10.7

 

 

$

(69.4

)

 

$

23.8

 

 

Condensed Supplemental Consolidating Statement of Comprehensive Income (Loss)

Six Months Ended June 30, 2017

(In millions)

 

 

 

Parent

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

 

 

 

 

 

Company

 

 

Subsidiaries

 

 

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Net (loss) income

 

$

(6.0

)

 

$

74.3

 

 

$

13.8

 

 

$

(88.1

)

 

$

(6.0

)

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

 

 

 

 

 

 

16.5

 

 

 

 

 

 

16.5

 

Pension and postretirement reclassification

   adjustment, net of tax

 

 

 

 

 

7.1

 

 

 

 

 

 

 

 

 

7.1

 

Other comprehensive income

 

 

 

 

 

7.1

 

 

 

16.5

 

 

 

 

 

 

23.6

 

Equity in other comprehensive income (loss) of

   subsidiaries

 

 

23.6

 

 

 

16.5

 

 

 

 

 

 

(40.1

)

 

 

 

Comprehensive income (loss)

 

$

17.6

 

 

$

97.9

 

 

$

30.3

 

 

$

(128.2

)

 

$

17.6

 

 

 

Condensed Supplemental Consolidating Statement of Comprehensive Income (Loss)

Six Months Ended June 30, 2016

(In millions)

 

 

 

Parent

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

 

 

 

 

 

Company

 

 

Subsidiaries

 

 

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Net income (loss)

 

$

15.8

 

 

$

99.8

 

 

$

5.3

 

 

$

(105.1

)

 

$

15.8

 

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

 

 

 

 

 

 

28.9

 

 

 

 

 

 

28.9

 

Pension and postretirement reclassification

   adjustment, net of tax

 

 

 

 

 

0.5

 

 

 

 

 

 

 

 

 

0.5

 

Other comprehensive income

 

 

 

 

 

0.5

 

 

 

28.9

 

 

 

 

 

 

29.4

 

Equity in other comprehensive income (loss) of

   subsidiaries

 

 

29.4

 

 

 

28.9

 

 

 

 

 

 

(58.3

)

 

 

 

Comprehensive income (loss)

 

$

45.2

 

 

$

129.2

 

 

$

34.2

 

 

$

(163.4

)

 

$

45.2

 

 

Condensed Supplemental Consolidating Statement of Cash Flows

Condensed Supplemental Consolidating Statement of Cash Flows

Six Months Ended June 30, 2017

(In millions)

 

 

 

Parent

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

 

 

 

 

 

Company

 

 

Subsidiaries

 

 

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating

   activities

 

$

(0.4

)

 

$

400.5

 

 

$

8.1

 

 

$

(80.8

)

 

$

327.4

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additions to property, plant, and equipment

 

 

(1.3

)

 

 

(62.2

)

 

 

(7.9

)

 

 

 

 

 

(71.4

)

Additions to intangible assets

 

 

(13.3

)

 

 

(0.7

)

 

 

 

 

 

 

 

 

(14.0

)

Intercompany transfer

 

 

189.7

 

 

 

(87.3

)

 

 

(0.1

)

 

 

(102.3

)

 

 

 

Proceeds from sale of fixed assets

 

 

 

 

 

1.7

 

 

 

 

 

 

 

 

 

1.7

 

Proceeds from divestiture

 

 

 

 

 

19.0

 

 

 

0.3

 

 

 

 

 

 

19.3

 

Other

 

 

 

 

 

 

 

 

(0.6

)

 

 

 

 

 

(0.6

)

Net cash provided by (used in) investing

   activities

 

 

175.1

 

 

 

(129.5

)

 

 

(8.3

)

 

 

(102.3

)

 

 

(65.0

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net borrowing (repayment) of debt

 

 

(152.7

)

 

 

(1.9

)

 

 

 

 

 

 

 

 

(154.6

)

Intercompany transfer

 

 

81.7

 

 

 

(269.1

)

 

 

4.3

 

 

 

183.1

 

 

 

 

Receipts related to stock-based award activities

 

 

9.9

 

 

 

 

 

 

 

 

 

 

 

 

9.9

 

Payments related to stock-based award activities

 

 

(6.6

)

 

 

 

 

 

 

 

 

 

 

 

(6.6

)

Net cash provided by (used in) financing

   activities

 

 

(67.7

)

 

 

(271.0

)

 

 

4.3

 

 

 

183.1

 

 

 

(151.3

)

Effect of exchange rate changes on cash and

   cash equivalents

 

 

 

 

 

 

 

 

1.0

 

 

 

 

 

 

1.0

 

Increase in cash and cash equivalents

 

 

107.0

 

 

 

 

 

 

5.1

 

 

 

 

 

 

112.1

 

Cash and cash equivalents, beginning of period

 

 

 

 

 

0.2

 

 

 

61.9

 

 

 

 

 

 

62.1

 

Cash and cash equivalents, end of period

 

$

107.0

 

 

$

0.2

 

 

$

67.0

 

 

$

 

 

$

174.2

 

 

Condensed Supplemental Consolidating Statement of Cash Flows

Six Months Ended June 30, 2016

(In millions)

 

 

 

Parent

 

 

Guarantor

 

 

Non-Guarantor

 

 

 

 

 

 

 

 

 

 

 

Company

 

 

Subsidiaries

 

 

Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in)  operating

   activities

 

$

52.8

 

 

$

300.2

 

 

$

(7.8

)

 

$

(104.7

)

 

$

240.5

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additions to property, plant, and equipment

 

 

(1.1

)

 

 

(73.9

)

 

 

(9.0

)

 

 

 

 

 

(84.0

)

Additions to intangible assets

 

 

(5.9

)

 

 

 

 

 

 

 

 

 

 

 

(5.9

)

Intercompany transfer

 

 

98.5

 

 

 

(30.7

)

 

 

 

 

 

(67.8

)

 

 

 

Acquisitions, less cash acquired

 

 

(2,683.5

)

 

 

0.3

 

 

 

43.0

 

 

 

 

 

 

(2,640.2

)

Proceeds from sale of fixed assets

 

 

 

 

 

0.1

 

 

 

 

 

 

 

 

 

0.1

 

Other

 

 

 

 

 

(0.6

)

 

 

(0.5

)

 

 

 

 

 

(1.1

)

Net cash provided by (used in) investing

   activities

 

 

(2,592.0

)

 

 

(104.8

)

 

 

33.5

 

 

 

(67.8

)

 

 

(2,731.1

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net borrowing (repayment) of debt

 

 

1,702.9

 

 

 

(2.1

)

 

 

 

 

 

 

 

 

1,700.8

 

Payment of deferred financing costs

 

 

(34.3

)

 

 

 

 

 

 

 

 

 

 

 

(34.3

)

Intercompany transfer

 

 

25.9

 

 

 

(192.7

)

 

 

(5.7

)

 

 

172.5

 

 

 

 

Net proceeds from issuance of common stock

 

 

835.1

 

 

 

 

 

 

 

 

 

 

 

 

835.1

 

Receipts related to stock-based award activities

 

 

7.0

 

 

 

 

 

 

 

 

 

 

 

 

7.0

 

Payments related to stock-based award activities

 

 

(7.8

)

 

 

 

 

 

 

 

 

 

 

 

(7.8

)

Net cash provided by (used in) financing

   activities

 

 

2,528.8

 

 

 

(194.8

)

 

 

(5.7

)

 

 

172.5

 

 

 

2,500.8

 

Effect of exchange rate changes on cash and

   cash equivalents

 

 

 

 

 

 

 

 

6.5

 

 

 

 

 

 

6.5

 

(Decrease) increase in cash and cash equivalents

 

 

(10.4

)

 

 

0.6

 

 

 

26.5

 

 

 

 

 

 

16.7

 

Cash and cash equivalents, beginning of period

 

 

10.4

 

 

 

0.1

 

 

 

24.4

 

 

 

 

 

 

34.9

 

Cash and cash equivalents, end of period

 

$

 

 

$

0.7

 

 

$

50.9

 

 

$

 

 

$

51.6

 

 

v3.7.0.1
Basis of Presentation - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Basis of Presentation [Line Items]        
Income tax benefits on recast to reflect the adoption of the ASU $ (21.8) $ 3.2 $ (10.3) $ 1.6
Accounting Standards Update 2016-09 | Restatement Adjustment        
Basis of Presentation [Line Items]        
Income tax benefits on recast to reflect the adoption of the ASU   $ (3.3)   $ (3.5)
Basic and diluted net earnings per common share   $ 0.06   $ 0.06
Excess tax benefits retrospectively reclassified from financing to operating activities       $ (3.5)
Excess tax benefits retrospectively reclassified from financing to operating activities       $ 3.5
v3.7.0.1
Schedule of Facility Closures (Detail)
$ in Millions
6 Months Ended
Jun. 30, 2017
USD ($)
Restructuring Cost and Reserve [Line Items]  
Total Costs to Close $ 46.0
Restructuring Plan, One  
Restructuring Cost and Reserve [Line Items]  
Facility Location City of Industry, California
Date of Closure Announcement Nov. 18, 2015
End of Production First quarter of 2016
Full Facility Closure Third quarter of 2016
Primary Products Produced Liquid non-dairy creamer and refrigerated salad dressings
Primary Segment(s) Affected Beverages, Condiments
Total Costs to Close $ 6.9
Total Cash Costs (Proceeds) to Close $ 3.8
Restructuring Plan, Two  
Restructuring Cost and Reserve [Line Items]  
Facility Location Ayer, Massachusetts
Date of Closure Announcement Apr. 05, 2016
End of Production First quarter of 2017
Full Facility Closure Third quarter of 2017
Primary Products Produced Spoonable dressings
Primary Segment(s) Affected Condiments
Total Costs to Close $ 6.1
Total Cash Costs (Proceeds) to Close $ 3.3
Restructuring Plan, Three  
Restructuring Cost and Reserve [Line Items]  
Facility Location Azusa, California
Date of Closure Announcement May 24, 2016
End of Production First quarter of 2017
Full Facility Closure Third quarter of 2017
Primary Products Produced Bars and snack products
Primary Segment(s) Affected Snacks
Total Costs to Close $ 18.5
Total Cash Costs (Proceeds) to Close $ 15.1
Restructuring Plan, Four  
Restructuring Cost and Reserve [Line Items]  
Facility Location Ripon, Wisconsin
Date of Closure Announcement May 24, 2016
End of Production Fourth quarter of 2016
Full Facility Closure Fourth quarter of 2016
Primary Products Produced Sugar wafer cookies
Primary Segment(s) Affected Baked Goods
Total Costs to Close $ 0.8
Total Cash Costs (Proceeds) to Close $ (0.2)
Restructuring Plan, Five  
Restructuring Cost and Reserve [Line Items]  
Facility Location Delta, British Columbia
Date of Closure Announcement Nov. 03, 2016
End of Production Fourth quarter of 2017
Full Facility Closure First quarter of 2018
Primary Products Produced Frozen griddle products
Primary Segment(s) Affected Baked Goods
Total Costs to Close $ 3.3
Total Cash Costs (Proceeds) to Close $ 2.3
Restructuring Plan, Six  
Restructuring Cost and Reserve [Line Items]  
Facility Location Battle Creek, Michigan
Date of Closure Announcement Nov. 03, 2016
End of Production - [1]
Full Facility Closure - [1]
Primary Products Produced Ready-to-eat cereal
Primary Segment(s) Affected Meals
Total Costs to Close $ 10.4
Total Cash Costs (Proceeds) to Close $ 2.8
[1] The downsizing of this facility began in January 2017 and is expected to last approximately 15 months.
v3.7.0.1
Schedule of Facility Closures (Parenthetical) (Detail) - Restructuring Plan, Six
6 Months Ended
Jun. 30, 2017
Restructuring Cost and Reserve [Line Items]  
Initiation month year 2017-01
Restructuring period 15 months
v3.7.0.1
Restructuring - Additional Information (Detail)
$ in Millions
6 Months Ended
Jun. 30, 2017
USD ($)
City of Industry, California  
Restructuring Cost and Reserve [Line Items]  
Plant closure, (reduction) increase in expected costs $ (4.9)
Ayer, Massachusetts Facility  
Restructuring Cost and Reserve [Line Items]  
Plant closure, (reduction) increase in expected costs (0.4)
Ripon, Wisconsin  
Restructuring Cost and Reserve [Line Items]  
Plant closure, (reduction) increase in expected costs (1.3)
Delta, British Columbia  
Restructuring Cost and Reserve [Line Items]  
Plant closure, (reduction) increase in expected costs (1.9)
Azusa, California  
Restructuring Cost and Reserve [Line Items]  
Plant closure, (reduction) increase in expected costs 3.7
Battle Creek, Michigan  
Restructuring Cost and Reserve [Line Items]  
Plant closure, (reduction) increase in expected costs $ 0.9
v3.7.0.1
Aggregate Expenses Incurred Associated with Facility Closure (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Restructuring Cost and Reserve [Line Items]        
Restructuring charges $ 7.1 $ 3.0 $ 16.5 $ 4.5
Cumulative costs to date 38.5   38.5  
Total expected costs 46.0   46.0  
Asset Related Costs        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges (0.9) 0.7 3.5 1.5
Cumulative costs to date 13.7   13.7  
Total expected costs 16.8   16.8  
Employee Related Costs        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges 0.2 1.3 2.7 1.9
Cumulative costs to date 10.0   10.0  
Total expected costs 11.8   11.8  
Other closure costs        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges 7.8 $ 1.0 10.3 $ 1.1
Cumulative costs to date 14.8   14.8  
Total expected costs $ 17.4   $ 17.4  
v3.7.0.1
Reconciliation of Liabilities (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Restructuring Cost and Reserve [Line Items]        
Expense $ 7.1 $ 3.0 $ 16.5 $ 4.5
Severance        
Restructuring Cost and Reserve [Line Items]        
Balance as of December 31, 2016     3.5  
Payments     (3.2)  
Adjustments     (0.3)  
Balance as of June 30, 2017 2.4   2.4  
Severance | Member Units        
Restructuring Cost and Reserve [Line Items]        
Expense     2.4  
Multi-employer Pension Plan Withdrawal        
Restructuring Cost and Reserve [Line Items]        
Balance as of December 31, 2016     0.8  
Balance as of June 30, 2017 0.8   0.8  
Other Costs        
Restructuring Cost and Reserve [Line Items]        
Expense 7.8 1.0 10.3 1.1
Balance as of June 30, 2017 2.4   2.4  
Other Costs | Member Units        
Restructuring Cost and Reserve [Line Items]        
Expense     2.4  
Employee Related Costs        
Restructuring Cost and Reserve [Line Items]        
Balance as of December 31, 2016     4.3  
Expense 0.2 $ 1.3 2.7 $ 1.9
Payments     (3.2)  
Adjustments     (0.3)  
Balance as of June 30, 2017 $ 5.6   5.6  
Employee Related Costs | Member Units        
Restructuring Cost and Reserve [Line Items]        
Expense     $ 4.8  
v3.7.0.1
Acquisitions - Additional Information (Detail) - USD ($)
3 Months Ended 5 Months Ended 6 Months Ended
Feb. 01, 2016
Jun. 30, 2017
Mar. 31, 2017
Jun. 30, 2016
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Dec. 31, 2016
Business Acquisition [Line Items]                
Business acquisition, cost of acquired entity, purchase price, net of cash             $ 2,640,200,000  
Net proceeds from issuance of stock             835,100,000  
Proceeds from issuance of 2024 Notes             775,000,000  
Proceeds from issuance of term loans A-2             1,025,000,000  
Cost of sales   $ 1,245,300,000   $ 1,275,600,000   $ 2,495,100,000 $ 2,321,200,000  
Goodwill   2,454,200,000       2,454,200,000   $ 2,447,200,000
Purchase price adjustments           3,000,000    
Baked Goods                
Business Acquisition [Line Items]                
Goodwill   555,600,000       555,600,000   554,200,000
Purchase price adjustments           1,400,000    
Condiments                
Business Acquisition [Line Items]                
Goodwill   435,600,000       435,600,000   433,100,000
Purchase price adjustments           200,000    
Meals                
Business Acquisition [Line Items]                
Goodwill   471,700,000       471,700,000   470,600,000
Purchase price adjustments           1,100,000    
Snacks                
Business Acquisition [Line Items]                
Goodwill   $ 276,400,000       276,400,000   $ 276,100,000
Purchase price adjustments           300,000    
Private brands business of ConAgra Foods                
Business Acquisition [Line Items]                
Business acquisition, cost of acquired entity, purchase price, net of cash $ 2,644,400,000              
Net proceeds from issuance of stock 835,100,000              
Proceeds from issuance of 2024 Notes 760,700,000              
Proceeds from issuance of term loans A-2 1,025,000,000              
Revolving credit facility - maximum borrowing capacity 900,000,000              
Net sales         $ 1,286,600,000      
Income before income taxes         32,300,000      
Integration costs         $ 6,500,000      
Indemnification assets 13,800,000              
Goodwill 1,141,200,000              
Business acquisition related costs 35,200,000         $ 0    
Purchase price adjustments     $ 3,000,000          
Private brands business of ConAgra Foods | Fair Value Adjustment to Inventory                
Business Acquisition [Line Items]                
Cost of sales 8,400,000              
Private brands business of ConAgra Foods | Customer relationships                
Business Acquisition [Line Items]                
Intangible asset 510,900,000              
Private brands business of ConAgra Foods | Trade names                
Business Acquisition [Line Items]                
Intangible asset $ 33,000,000              
Finite-lived intangible assets, useful life 10 years              
Private brands business of ConAgra Foods | Formulas/recipes                
Business Acquisition [Line Items]                
Intangible asset $ 23,200,000              
Finite-lived intangible assets, useful life 5 years              
Private brands business of ConAgra Foods | Computer software                
Business Acquisition [Line Items]                
Intangible asset $ 19,600,000              
Private brands business of ConAgra Foods | Computer software | Minimum                
Business Acquisition [Line Items]                
Finite-lived intangible assets, useful life 1 year              
Private brands business of ConAgra Foods | Computer software | Maximum                
Business Acquisition [Line Items]                
Finite-lived intangible assets, useful life 5 years              
Private brands business of ConAgra Foods | Retail Grocery Customers | Customer relationships                
Business Acquisition [Line Items]                
Intangible asset $ 496,100,000              
Finite-lived intangible assets, useful life 13 years              
Private brands business of ConAgra Foods | Food Away From Home Customers | Customer relationships                
Business Acquisition [Line Items]                
Intangible asset $ 14,800,000              
Finite-lived intangible assets, useful life 10 years              
Private brands business of ConAgra Foods | Baked Goods                
Business Acquisition [Line Items]                
Goodwill $ 555,000,000              
Private brands business of ConAgra Foods | Condiments                
Business Acquisition [Line Items]                
Goodwill 73,300,000              
Private brands business of ConAgra Foods | Meals                
Business Acquisition [Line Items]                
Goodwill 413,800,000              
Private brands business of ConAgra Foods | Snacks                
Business Acquisition [Line Items]                
Goodwill $ 97,900,000              
v3.7.0.1
Purchase Price Allocation to Net Tangible and Intangible Assets Acquired and Liabilities Assumed (Detail) - USD ($)
$ in Millions
Jun. 30, 2017
Dec. 31, 2016
Feb. 01, 2016
Business Acquisition [Line Items]      
Goodwill $ 2,454.2 $ 2,447.2  
Private brands business of ConAgra Foods      
Business Acquisition [Line Items]      
Cash     $ 43.3
Receivables     162.7
Inventory     443.7
Property, plant, and equipment     809.6
Other assets     50.2
Goodwill     1,141.2
Assets acquired     3,237.4
Deferred taxes     (152.8)
Assumed current liabilities     (246.6)
Assumed long-term liabilities     (150.3)
Total purchase price     2,687.7
Private brands business of ConAgra Foods | Customer relationships      
Business Acquisition [Line Items]      
Intangible asset     510.9
Private brands business of ConAgra Foods | Trade names      
Business Acquisition [Line Items]      
Intangible asset     33.0
Private brands business of ConAgra Foods | Computer software      
Business Acquisition [Line Items]      
Intangible asset     19.6
Private brands business of ConAgra Foods | Formulas/recipes      
Business Acquisition [Line Items]      
Intangible asset     $ 23.2
v3.7.0.1
Business Acquisition Pro Forma Information (Detail) - Private brands business of ConAgra Foods
$ / shares in Units, $ in Millions
6 Months Ended
Jun. 30, 2016
USD ($)
$ / shares
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]  
Pro forma net sales | $ $ 3,135.5
Pro forma net income | $ $ 37.5
Pro forma basic earnings per common share | $ / shares $ 0.66
Pro forma diluted earnings per common share | $ / shares $ 0.65
v3.7.0.1
Investments (Detail) - USD ($)
$ in Millions
Jun. 30, 2017
Dec. 31, 2016
Investment [Line Items]    
Total investments $ 12.1 $ 10.4
Equity | United States    
Investment [Line Items]    
Total investments 8.9 7.6
Equity | Non-U.S.    
Investment [Line Items]    
Total investments 2.1 1.8
Fixed Income    
Investment [Line Items]    
Total investments $ 1.1 $ 1.0
v3.7.0.1
Inventories (Detail) - USD ($)
$ in Millions
Jun. 30, 2017
Dec. 31, 2016
Inventory Disclosure [Abstract]    
Raw materials and supplies $ 448.3 $ 429.4
Finished goods 569.5 571.9
LIFO reserve (24.7) (23.3)
Total inventories $ 993.1 $ 978.0
v3.7.0.1
Inventories - Additional Information (Detail) - USD ($)
$ in Millions
Jun. 30, 2017
Dec. 31, 2016
Inventory Disclosure [Abstract]    
LIFO inventory $ 93.0 $ 105.9
Inventory accounted for under the weighted average cost method $ 113.3 $ 116.2
v3.7.0.1
Property, Plant, and Equipment (Detail) - USD ($)
$ in Millions
Jun. 30, 2017
Dec. 31, 2016
Property Plant And Equipment [Abstract]    
Land $ 70.0 $ 71.2
Buildings and improvements 451.1 465.3
Machinery and equipment 1,250.5 1,324.5
Construction in progress 68.0 85.0
Total 1,839.6 1,946.0
Less accumulated depreciation (543.3) (586.7)
Property, plant, and equipment, net $ 1,296.3 $ 1,359.3
v3.7.0.1
Property, Plant, and Equipment - Additional Information (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Property Plant And Equipment [Abstract]        
Depreciation expense $ 37.9 $ 44.9 $ 81.7 $ 80.5
v3.7.0.1
Goodwill and Intangible Assets - Additional Information (Detail)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2017
USD ($)
Mar. 31, 2017
Segment
Jun. 30, 2016
USD ($)
Jun. 30, 2017
USD ($)
Jun. 30, 2016
USD ($)
Dec. 31, 2016
USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]            
Number of operating segments | Segment   5        
Total intangible assets, excluding goodwill $ 1,089.4     $ 1,089.4   $ 1,137.6
Amortization expense on intangible assets $ 28.7   $ 28.5 $ 57.3 $ 52.3  
v3.7.0.1
Changes in Carrying Amount of Goodwill (Detail)
$ in Millions
6 Months Ended
Jun. 30, 2017
USD ($)
Goodwill [Line Items]  
Beginning Balance $ 2,447.2
Purchase price adjustments 3.0
Foreign currency exchange adjustments 4.0
Ending Balance 2,454.2
Baked Goods  
Goodwill [Line Items]  
Beginning Balance 554.2
Purchase price adjustments 1.4
Ending Balance 555.6
Beverages  
Goodwill [Line Items]  
Beginning Balance 713.2
Foreign currency exchange adjustments 1.7
Ending Balance 714.9
Condiments  
Goodwill [Line Items]  
Beginning Balance 433.1
Purchase price adjustments 0.2
Foreign currency exchange adjustments 2.3
Ending Balance 435.6
Meals  
Goodwill [Line Items]  
Beginning Balance 470.6
Purchase price adjustments 1.1
Ending Balance 471.7
Snacks  
Goodwill [Line Items]  
Beginning Balance 276.1
Purchase price adjustments 0.3
Ending Balance $ 276.4
v3.7.0.1
Carrying Amounts of Intangible Assets with Indefinite Lives Other Than Goodwill (Detail) - USD ($)
$ in Millions
Jun. 30, 2017
Dec. 31, 2016
Indefinite-lived Intangible Assets [Line Items]    
Indefinite lived intangibles $ 22.1 $ 21.6
Trademarks    
Indefinite-lived Intangible Assets [Line Items]    
Indefinite lived intangibles $ 22.1 $ 21.6
v3.7.0.1
Gross Carrying Amounts and Accumulated Amortization of Intangible Assets, with Finite Lives (Detail) - USD ($)
$ in Millions
Jun. 30, 2017
Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 1,495.6 $ 1,506.3
Accumulated Amortization (428.3) (390.3)
Net Carrying Amount 1,067.3 1,116.0
Customer-related Intangible Assets    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 1,260.8 1,284.3
Accumulated Amortization (317.4) (293.3)
Net Carrying Amount 943.4 991.0
Contractual agreements    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 3.0 3.0
Accumulated Amortization (2.9) (2.9)
Net Carrying Amount 0.1 0.1
Trademarks    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 69.4 69.6
Accumulated Amortization (26.0) (23.6)
Net Carrying Amount 43.4 46.0
Formulas/recipes    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 33.8 33.7
Accumulated Amortization (15.6) (12.8)
Net Carrying Amount 18.2 20.9
Computer software    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 128.6 115.7
Accumulated Amortization (66.4) (57.7)
Net Carrying Amount $ 62.2 $ 58.0
v3.7.0.1
Estimated Amortization Expense on Intangible Assets (Detail)
$ in Millions
Dec. 31, 2016
USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]  
2017 $ 114.2
2018 108.1
2019 105.5
2020 103.0
2021 $ 93.8
v3.7.0.1
Accounts Payable and Accrued Expenses (Detail) - USD ($)
$ in Millions
Jun. 30, 2017
Dec. 31, 2016
Payables And Accruals [Abstract]    
Accounts payable $ 576.8 $ 458.1
Payroll and benefits 57.2 78.5
Interest 23.7 24.1
Taxes 10.2 31.0
Health insurance, workers' compensation, and other insurance costs 26.3 17.2
Marketing expenses 9.6 12.4
Other accrued liabilities 8.3 5.5
Total $ 712.1 $ 626.8
v3.7.0.1
Income Taxes - Additional Information (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Income Tax Disclosure [Abstract]        
Effective income tax rate 38.90% 14.40% 63.20% 9.20%
Effective income tax rate discrete benefit attributable to vesting and exercise of share based awards     13.90%  
Decrease in total amount of unrecognized tax benefits within the next 12 months $ 5.8   $ 5.8  
Decrease in unrecognized tax benefits is reasonably possible $ 2.8   $ 2.8  
v3.7.0.1
Long-Term Debt (Detail) - USD ($)
$ in Millions
Jun. 30, 2017
Dec. 31, 2016
Debt Instrument [Line Items]    
Other debt $ 3.1 $ 5.7
Total outstanding debt 2,669.2 2,824.5
Deferred financing costs (29.9) (33.3)
Less current portion (70.9) (66.4)
Total long-term debt 2,568.4 2,724.8
Revolving Credit Facility    
Debt Instrument [Line Items]    
Revolving credit facility 49.0 170.0
Term Loan A    
Debt Instrument [Line Items]    
Term Loan 280.5 288.0
Term Loan A-1    
Debt Instrument [Line Items]    
Term Loan 175.0 180.0
Term Loan A 2    
Debt Instrument [Line Items]    
Term Loan 986.6 1,005.8
2022 Notes    
Debt Instrument [Line Items]    
Senior notes 400.0 400.0
2024 Notes    
Debt Instrument [Line Items]    
Senior notes $ 775.0 $ 775.0
v3.7.0.1
Long-Term Debt - Additional Information (Detail) - USD ($)
3 Months Ended 6 Months Ended
Feb. 01, 2016
Jun. 30, 2017
Jun. 30, 2017
Jun. 30, 2016
Debt Instrument [Line Items]        
Average interest rate on debt outstanding   3.02%    
Credit agreement interest rate including effect of interest rate swaps     2.98%  
Interest rate swap        
Debt Instrument [Line Items]        
Weighted average fixed interest rate   0.86% 0.86% 0.86%
Derivative notional amount   $ 500,000,000 $ 500,000,000 $ 500,000,000
Term Loan A 2        
Debt Instrument [Line Items]        
Debt instrument, leverage ratio 350.00%      
Term loan maturity date Feb. 01, 2021      
v3.7.0.1
Long-Term Debt - Revolving Credit Facility - Additional Information (Detail) - Revolving Credit Facility - USD ($)
6 Months Ended
Jun. 30, 2017
Feb. 01, 2016
Debt Instrument [Line Items]    
Revolving credit facility available $ 801,100,000  
Revolving credit facility - maximum borrowing capacity   $ 900,000,000
Letters of credit facility issued but undrawn $ 49,900,000  
Revolving credit availability reduced by undrawn letters of credit In addition, as of June 30, 2017, there were $49.9 million in letters of credit under the Revolving Credit Facility that were issued but undrawn, which have been included as a reduction to the calculation of available credit.  
v3.7.0.1
Stockholders' Equity - Additional Information (Detail) - $ / shares
6 Months Ended
Jun. 30, 2017
Dec. 31, 2016
Equity [Abstract]    
Common stock, shares authorized 90,000,000 90,000,000
Common stock, par value $ 0.01 $ 0.01
Common stock, dividend declared 0  
Common stock, dividend paid $ 0  
Common stock, shares issued 57,168,101 56,800,000
Common stock, shares outstanding 57,168,101 56,800,000
Treasury stock, shares issued 0  
Treasury stock, shares outstanding 0  
Preferred stock, shares authorized 10,000,000 10,000,000
Preferred stock, par value $ 0.01 $ 0.01
Preferred stock, shares issued 0 0
v3.7.0.1
Summary of Effect of Share-Based Compensation Awards on Weighted Average Number of Shares Outstanding Used in Calculating Diluted Earnings Per Share (Detail) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Earnings Per Share [Abstract]        
Net (loss) income $ (34.2) $ 19.0 $ (6.0) $ 15.8
Weighted average common shares outstanding 57.0 56.6 57.0 54.6
Assumed exercise/vesting of equity awards [1]   0.9   0.9
Weighted average diluted common shares outstanding 57.0 57.5 57.0 55.5
Net (loss) earnings per basic share $ (0.60) $ 0.34 $ (0.11) $ 0.29
Net (loss) earnings per diluted share $ (0.60) $ 0.33 $ (0.11) $ 0.28
[1] Incremental shares from equity awards are computed using the treasury stock method. For the three and six months ended June 30, 2017, weighted average common shares outstanding is the same for the computations of basic and diluted earnings per share because the Company had a net loss for the periods. Equity awards, excluded from our computation of diluted earnings per share because they were anti-dilutive, were 1.1 million and 1.6 million for the three and six months ended June 30, 2017, respectively, and 0.7 million and 1.0 million for the three and six months ended June 30, 2016, respectively.
v3.7.0.1
Summary of Effect of Share-Based Compensation Awards on Weighted Average Number of Shares Outstanding Used in Calculating Diluted Earnings Per Share (Parenthetical) (Detail) - shares
shares in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Earnings Per Share [Abstract]        
Equity awards, excluded from computation of diluted earnings 1.1 0.7 1.6 1.0
v3.7.0.1
Stock-Based Compensation - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended 6 Months Ended
Jun. 27, 2017
Feb. 14, 2017
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based compensation expense     $ 11.1 $ 8.1 $ 18.6 $ 14.3
Tax benefit recognized related to the compensation cost of share-based awards     4.1 $ 3.0 6.9 $ 5.2
Performance units converted into shares of common stock 72,335          
Stock units, vested 81,556          
Conversion ratio of awards vesting 113.00%          
Employee Stock Option            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Compensation costs, unrecognized     $ 18.0   $ 18.0  
Compensation costs, recognition weighted average remaining period (in years)         2 years 3 months 18 days  
Weighted average expected volatility         26.70%  
Expected term         6 years  
Weighted average risk-free interest rate         2.07%  
Weighted average grant date fair         $ 24.86  
Director Restricted Stock Units            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of restricted stock units, earned and deferred     100,000   100,000  
Stock units, vested         2,000  
Employee Restricted Stock Units and Director Restricted Stock Units            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Compensation costs, unrecognized     $ 36.7   $ 36.7  
Compensation costs, recognition weighted average remaining period (in years)         2 years 1 month 6 days  
Performance Units            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Compensation costs, unrecognized     $ 12.7   $ 12.7  
Compensation costs, recognition weighted average remaining period (in years)         2 years 4 months 24 days  
Share based compensation arrangement, award vesting period         3 years  
Stock units, vested         72,000  
Performance Units | Minimum            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Predefined percentage for calculation of performance unit awards         0.00%  
Performance Units | Maximum            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Predefined percentage for calculation of performance unit awards         200.00%  
TreeHouse Foods, Inc. Equity and Incentive Plan            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Equity and Incentive Plan, additional shares available for issuance   3,800,000        
Maximum number of shares available to be awarded     16,100,000   16,100,000  
Shares available     5,000,000   5,000,000  
v3.7.0.1
Summary of Stock Option Activity (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
6 Months Ended 12 Months Ended
Jun. 30, 2017
Dec. 31, 2016
Employee Stock Option    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Outstanding, Beginning Balance 2,069  
Granted 452  
Forfeited (58)  
Exercised (228)  
Expired (2)  
Outstanding, Ending Balance 2,233 2,069
Vested/expected to vest, at June 30, 2017 2,149  
Exercisable, at June 30, 2017 1,425  
Director Options    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Outstanding, Beginning Balance 20  
Exercised (16)  
Outstanding, Ending Balance 4 20
Vested/expected to vest, at June 30, 2017 4  
Exercisable, at June 30, 2017 4  
Employee And Director Stock Option    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Outstanding, Beginning Balance $ 64.77  
Granted 84.53  
Forfeited 87.93  
Exercised 40.51  
Expired 85.17  
Outstanding, Ending Balance 70.81 $ 64.77
Vested/expected to vest, at June 30, 2017 70.19  
Exercisable, at June 30, 2017 $ 61.53  
Outstanding, Ending Balance 6 years 7 months 6 days 5 years 9 months 18 days
Vested/expected to vest, at June 30, 2017 6 years 4 months 24 days  
Exercisable, at June 30, 2017 5 years  
Outstanding, Beginning Balance $ 31.5 $ 28.9
Vested/expected to vest, at June 30, 2017 31.4  
Exercisable, at June 30, 2017 $ 30.7  
v3.7.0.1
Summary of Employee and Director Stock Option Highlights (Detail) - Employee And Director Stock Option - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Compensation expense $ 2.8 $ 1.9 $ 4.6 $ 3.5
Intrinsic value of stock options exercised 5.6 4.7 10.1 6.0
Tax benefit recognized from stock option exercises $ 2.2 $ 1.7 $ 3.9 $ 2.1
v3.7.0.1
Summary of Restricted Stock and Restricted Stock Unit Activity (Detail) - $ / shares
6 Months Ended
Jun. 27, 2017
Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Vested (81,556)  
Employee Restricted Stock Units    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Beginning Balance   516,000
Granted   265,000
Vested   (163,000)
Forfeited   (44,000)
Ending Balance   574,000
Beginning Balance   $ 87.03
Granted   83.97
Vested   85.17
Forfeited   87.32
Ending Balance   $ 86.11
Director Restricted Stock Units    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Beginning Balance   104,000
Granted   17,000
Vested   (2,000)
Ending Balance   119,000
Beginning Balance   $ 57.78
Granted   84.66
Vested   98.28
Ending Balance   $ 60.86
v3.7.0.1
Summary of Employee and Director Restricted Stock and Restricted Stock Highlights (Detail) - Employee Restricted Stock Units and Director Restricted Stock Units - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Compensation expense $ 7.1 $ 4.5 $ 11.8 $ 8.0
Fair value of vested restricted stock units 10.1 12.9 13.0 13.1
Tax benefit recognized from vested restricted stock units $ 3.7 $ 4.6 $ 4.8 $ 4.7
v3.7.0.1
Summary of Performance Unit Activity (Detail) - $ / shares
6 Months Ended
Jun. 27, 2017
Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Vested (81,556)  
Performance Units    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Beginning Balance   246,000
Granted   114,000
Vested   (72,000)
Forfeited   (10,000)
Ending Balance   278,000
Beginning Balance   $ 85.16
Granted   84.66
Vested   79.89
Forfeited   88.10
Ending Balance   $ 86.21
v3.7.0.1
Summary of Performance Unit Highlights (Detail) - Performance Units - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Compensation expense $ 1.2 $ 1.7 $ 2.2 $ 2.8
Fair value of vested performance units 6.5 11.4 6.5 11.4
Tax benefit recognized from performance units vested $ 2.5 $ 4.1 $ 2.5 $ 4.1
v3.7.0.1
Components of Accumulated Other Comprehensive Loss Net of Tax Except for Foreign Currency Translation Adjustment (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning Balance     $ 2,503.3  
Other comprehensive income $ 19.7 $ 4.8 23.6 $ 29.4
Ending Balance 2,542.9   2,542.9  
Foreign Currency Translation        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning Balance [1]     (89.4) (100.5)
Other comprehensive income [1]     16.5 28.9
Other comprehensive income [1]     16.5 28.9
Ending Balance [1] (72.9) (71.6) (72.9) (71.6)
Unrecognized Pension and Postretirement Benefits        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning Balance [2]     (11.9) (13.0)
Reclassifications from accumulated other comprehensive loss 6.8 0.2 7.1 [2] 0.5 [2]
Other comprehensive income [2]     7.1 0.5
Ending Balance [2] (4.8) (12.5) (4.8) (12.5)
Accumulated Other Comprehensive Loss        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning Balance     (101.3) (113.5)
Other comprehensive income     16.5 28.9
Reclassifications from accumulated other comprehensive loss     7.1 0.5
Other comprehensive income     23.6 29.4
Ending Balance $ (77.7) $ (84.1) $ (77.7) $ (84.1)
[1] The foreign currency translation adjustment is not net of tax, as the Company’s investments in its foreign subsidiaries are considered to be permanent.
[2] The unrecognized pension and postretirement benefits reclassification is presented net of tax of $4.4 million and $0.3 million for the six months ended June 30, 2017 and 2016, respectively.
v3.7.0.1
Components of Accumulated Other Comprehensive Loss Net of Tax Except for Foreign Currency Translation Adjustment (Parenthetical) (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Equity [Abstract]        
Pension and postretirement reclassification adjustment, tax $ 4.2 $ 0.2 $ 4.4 $ 0.3
v3.7.0.1
Reclassifications from Accumulated Other Comprehensive Loss (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Prior service costs        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Reclassifications from accumulated other comprehensive loss, before tax [1]     $ 0.1 $ 0.1
Unrecognized net loss        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Reclassifications from accumulated other comprehensive loss, before tax [1] $ 0.2 $ 0.4 0.6 0.7
Actuarial Adjustment        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Reclassifications from accumulated other comprehensive loss, before tax [2] 2.1   2.1  
Divestiture        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Reclassifications from accumulated other comprehensive loss, before tax 8.7   8.7  
Unrecognized Pension and Postretirement Benefits        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Reclassifications from accumulated other comprehensive loss, before tax 11.0 0.4 11.5 0.8
Income taxes 4.2 0.2 4.4 0.3
Reclassifications from accumulated other comprehensive loss, Net of tax $ 6.8 $ 0.2 $ 7.1 [3] $ 0.5 [3]
[1] These accumulated other comprehensive loss components are included in the computation of net periodic pension and postretirement cost, and are recorded in the Cost of sales and General and administrative lines of the Condensed Consolidated Statements of Operations.
[2] Represents the actuarial adjustment that was recorded in conjunction with the divestiture of a pension plan and a postretirement benefit plan in the second quarter of 2017.
[3] The unrecognized pension and postretirement benefits reclassification is presented net of tax of $4.4 million and $0.3 million for the six months ended June 30, 2017 and 2016, respectively.
v3.7.0.1
Employee Retirement and Postretirement Benefits - Additional Information (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Defined Benefit Plan Disclosure [Line Items]        
Other operating expense, net $ (94.0) $ (3.3) $ (100.8) $ (5.0)
Pension Benefits        
Defined Benefit Plan Disclosure [Line Items]        
Expected contribution for benefit plans in the remaining current fiscal year 0.0   0.0  
Postretirement Benefits        
Defined Benefit Plan Disclosure [Line Items]        
Expected contribution for benefit plans in the remaining current fiscal year $ 1.6   1.6  
Net Unfunded Liability        
Defined Benefit Plan Disclosure [Line Items]        
Other operating expense, net     $ 10.5  
v3.7.0.1
Summary of Net Periodic Cost of Pension and Postretirement Benefit Plans (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Pension Benefits        
Components of net periodic costs:        
Service cost $ 1.0 $ 1.3 $ 2.2 $ 2.3
Interest cost 3.8 4.1 7.8 7.1
Expected return on plan assets (4.4) (4.5) (9.1) (7.7)
Amortization of unrecognized prior service cost     0.1 0.1
Amortization of unrecognized net loss 0.2 0.4 0.6 0.7
Net periodic pension cost 0.6 1.3 1.6 2.5
Postretirement Benefits        
Components of net periodic costs:        
Interest cost 0.3 0.4 0.6 0.6
Net periodic pension cost $ 0.3 $ 0.4 $ 0.6 $ 0.6
v3.7.0.1
Other Operating Expense, Net (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Other Income And Expenses [Abstract]        
Restructuring $ 8.8 $ 2.5 $ 15.6 $ 4.1
Loss on divestiture 85.2   85.2  
Other   0.8   0.9
Total other operating expense, net $ 94.0 $ 3.3 $ 100.8 $ 5.0
v3.7.0.1
Supplemental Cash Flow Information (Detail) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Supplemental Cash Flow Elements [Abstract]    
Interest paid $ 56.9 $ 33.3
Income taxes paid 21.7 46.4
Accrued purchase of property and equipment 14.9 11.5
Accrued other intangible assets $ 5.0 $ 3.0
v3.7.0.1
Supplemental Cash Flow Information - Additional Information (Detail) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Supplemental Cash Flow Elements [Abstract]    
Non-cash financing activities related to vesting of restricted stock, restricted stock units, and performance stock units $ 19.5 $ 24.0
v3.7.0.1
Derivative Instruments - Additional Information (Detail)
1 Months Ended 6 Months Ended
Jun. 30, 2016
USD ($)
Jun. 30, 2017
USD ($)
MW
gal
DTH
bsh
Interest rate swap    
Derivative [Line Items]    
Derivative notional amount | $ $ 500,000,000 $ 500,000,000
Weighted average fixed interest rate 0.86% 0.86%
Derivative contract, term 37 months  
Derivative contract, date entered Jan. 31, 2017  
Derivative contract, date matures Feb. 28, 2020  
Foreign Currency Contract    
Derivative [Line Items]    
Derivative notional amount | $   $ 23,600,000
Derivative, expiration period   Throughout 2017
Electricity Contract    
Derivative [Line Items]    
Derivative, expiration period   Throughout 2017 and 2018
Notional amount outstanding | MW   107,370
Diesel Contract    
Derivative [Line Items]    
Derivative, expiration period   Throughout 2017 and early 2018
Notional amount outstanding | gal   14,000,000
Natural Gas Contract    
Derivative [Line Items]    
Derivative, expiration period   Throughout 2017 and 2018
Notional amount outstanding | DTH   3,100,000
Wheat Contract    
Derivative [Line Items]    
Derivative, expiration period   Throughout 2017 and early 2018
Notional amount outstanding | bsh   300,000
Corn Contract    
Derivative [Line Items]    
Derivative, expiration period   Throughout 2017 and early 2018
Notional amount outstanding | bsh   900,000
v3.7.0.1
Derivative, Fair Value, and Location on Condensed Consolidated Balance Sheets (Detail) - USD ($)
$ in Millions
Jun. 30, 2017
Dec. 31, 2016
Derivatives, Fair Value [Line Items]    
Asset derivative, fair value $ 10.7 $ 12.1
Liability derivative, fair value 1.6 0.5
Foreign Currency Contract | Accounts payable and accrued expenses    
Derivatives, Fair Value [Line Items]    
Liability derivative, fair value 0.4  
Foreign Currency Contract | Prepaid expenses and other current assets    
Derivatives, Fair Value [Line Items]    
Asset derivative, fair value 0.3 0.7
Commodity contracts | Accounts payable and accrued expenses    
Derivatives, Fair Value [Line Items]    
Liability derivative, fair value 1.2 0.5
Commodity contracts | Prepaid expenses and other current assets    
Derivatives, Fair Value [Line Items]    
Asset derivative, fair value 0.5 1.0
Interest rate swap | Prepaid expenses and other current assets    
Derivatives, Fair Value [Line Items]    
Asset derivative, fair value $ 9.9 $ 10.4
v3.7.0.1
Gains and Losses on Derivative Contracts (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Derivative Instruments, Gain (Loss) [Line Items]        
Mark to market unrealized gain (loss), commodity and derivative $ (2.3) $ 1.7 $ (2.5) $ (3.0)
Realized gain (loss) 0.5 (2.7) 1.1 (2.9)
Total loss (1.8) (1.0) (1.4) (5.9)
Commodity contracts | Other expense (income), net        
Derivative Instruments, Gain (Loss) [Line Items]        
Mark to market unrealized gain (loss), commodity (0.1) 0.5 (1.2) 0.9
Commodity contracts | Selling and distribution        
Derivative Instruments, Gain (Loss) [Line Items]        
Realized gain (loss) (0.7)   (0.2) (1.0)
Foreign Currency Contract | Other expense (income), net        
Derivative Instruments, Gain (Loss) [Line Items]        
Mark to market unrealized gain (loss), derivative (0.7) 2.8 (0.8) (2.3)
Foreign Currency Contract | Cost of sales        
Derivative Instruments, Gain (Loss) [Line Items]        
Realized gain (loss) 1.0 (2.7) 1.2 (1.9)
Interest rate swap | Other expense (income), net        
Derivative Instruments, Gain (Loss) [Line Items]        
Mark to market unrealized gain (loss), derivative (1.5) $ (1.6) (0.5) $ (1.6)
Interest rate swap | Interest expense        
Derivative Instruments, Gain (Loss) [Line Items]        
Realized gain (loss) $ 0.2   $ 0.1  
v3.7.0.1
Carrying Value and Fair Value of Financial Instruments (Detail) - USD ($)
$ in Millions
Jun. 30, 2017
Dec. 31, 2016
Carrying Value | Fair Value, Inputs, Level 2 | Revolving Credit Facility    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Revolving Credit Facility $ (49.0) $ (170.0)
Carrying Value | Fair Value, Inputs, Level 2 | Term Loan A    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Term Loan (280.5) (288.0)
Carrying Value | Fair Value, Inputs, Level 2 | Term Loan A-1    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Term Loan (175.0) (180.0)
Carrying Value | Fair Value, Inputs, Level 2 | Term Loan A 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Term Loan (986.6) (1,005.8)
Carrying Value | Fair Value, Inputs, Level 2 | 2022 Notes    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Notes (400.0) (400.0)
Carrying Value | Fair Value, Inputs, Level 2 | 2024 Notes    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Notes (775.0) (775.0)
Carrying Value | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments 12.1 10.4
Carrying Value | Fair Value, Measurements, Recurring | Commodity contracts | Fair Value, Inputs, Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Derivative assets (liability) (0.7) 0.5
Carrying Value | Fair Value, Measurements, Recurring | Foreign Currency Contract | Fair Value, Inputs, Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Derivative assets (liability) (0.1) 0.7
Carrying Value | Fair Value, Measurements, Recurring | Interest rate swap | Fair Value, Inputs, Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Derivative assets (liability) 9.9 10.4
Fair Value | Fair Value, Inputs, Level 2 | Revolving Credit Facility    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Revolving Credit Facility (48.3) (167.1)
Fair Value | Fair Value, Inputs, Level 2 | Term Loan A    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Term Loan (280.9) (288.1)
Fair Value | Fair Value, Inputs, Level 2 | Term Loan A-1    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Term Loan (175.3) (180.3)
Fair Value | Fair Value, Inputs, Level 2 | Term Loan A 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Term Loan (988.3) (1,007.4)
Fair Value | Fair Value, Inputs, Level 2 | 2022 Notes    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Notes (413.0) (410.0)
Fair Value | Fair Value, Inputs, Level 2 | 2024 Notes    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Notes (825.4) (809.9)
Fair Value | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments 12.1 10.4
Fair Value | Fair Value, Measurements, Recurring | Commodity contracts | Fair Value, Inputs, Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Derivative assets (liability) (0.7) 0.5
Fair Value | Fair Value, Measurements, Recurring | Foreign Currency Contract | Fair Value, Inputs, Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Derivative assets (liability) (0.1) 0.7
Fair Value | Fair Value, Measurements, Recurring | Interest rate swap | Fair Value, Inputs, Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Derivative assets (liability) $ 9.9 $ 10.4
v3.7.0.1
Financial Information Relating to Reportable Segments (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Segment Reporting Information [Line Items]        
Net sales $ 1,522.2 $ 1,541.4 $ 3,058.4 $ 2,811.6
Direct operating income 172.7 179.2 351.5 337.0
Selling, general, and administrative expenses (177.9) (182.4) (361.6) (362.5)
Cost of sales (1,245.3) (1,275.6) (2,495.1) (2,321.2)
Operating (loss) income (23.7) 51.6 43.6 70.6
Other expense (32.3) (29.4) (59.9) (53.2)
(Loss) income before income taxes (56.0) 22.2 (16.3) 17.4
Baked Goods        
Segment Reporting Information [Line Items]        
Net sales 324.3 322.9 665.4 542.4
Direct operating income 32.5 34.8 74.4 63.6
Beverages        
Segment Reporting Information [Line Items]        
Net sales 246.2 212.9 514.2 437.8
Direct operating income 60.3 54.1 119.0 111.8
Condiments        
Segment Reporting Information [Line Items]        
Net sales 344.9 340.5 655.0 636.1
Direct operating income 36.0 41.9 67.7 77.0
Meals        
Segment Reporting Information [Line Items]        
Net sales 288.4 317.0 612.4 589.4
Direct operating income 33.8 29.4 67.8 55.8
Snacks        
Segment Reporting Information [Line Items]        
Net sales 317.0 358.0 607.6 615.8
Direct operating income 10.1 19.0 22.6 28.8
Unallocated Amount to Segment        
Segment Reporting Information [Line Items]        
Net sales 1.4 (9.9) 3.8 (9.9)
Selling, general, and administrative expenses (82.0) (79.2) (162.0) (179.9)
Cost of sales [1] 6.9 (6.7) 8.4 (19.3)
Unallocated corporate expense and other $ (121.3) $ (41.7) $ (154.3) $ (67.2)
[1] Includes charges related to restructurings and other costs managed at corporate.
v3.7.0.1
Segment and Geographic Information and Major Customers - Additional Information (Detail)
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Customer Concentration Risk | Sales Revenue, Net | Walmart Stores, Inc. and affiliates    
Segment Reporting Information [Line Items]    
Concentration risk, percentage 20.60% 18.70%
Customer Concentration Risk | Sales Revenue, Net | Outside of the United States    
Segment Reporting Information [Line Items]    
Concentration risk, percentage 8.60% 9.00%
Geographic Concentration Risk | Sales Revenue, Net | Canada    
Segment Reporting Information [Line Items]    
Concentration risk, percentage 6.80% 7.10%
Geographic Concentration Risk | Property, Plant and Equipment | Outside of the United States    
Segment Reporting Information [Line Items]    
Concentration risk, percentage 11.60% 11.20%
v3.7.0.1
Net Sale by Major Products (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Segment Reporting Information [Line Items]        
Net sales $ 1,522.2 $ 1,541.4 $ 3,058.4 $ 2,811.6
Dressings and Sauces        
Segment Reporting Information [Line Items]        
Net sales 250.9 248.1 488.2 469.4
Snacks        
Segment Reporting Information [Line Items]        
Net sales 196.5 205.7 384.2 348.0
Beverages        
Segment Reporting Information [Line Items]        
Net sales 167.7 142.0 350.8 286.1
Retail Bakery        
Segment Reporting Information [Line Items]        
Net sales 162.0 159.0 344.6 272.3
Cereals and Other Meals        
Segment Reporting Information [Line Items]        
Net sales 149.2 182.1 339.6 352.0
Baked Products        
Segment Reporting Information [Line Items]        
Net sales 162.3 163.9 320.8 270.1
Pasta and Dry Dinners        
Segment Reporting Information [Line Items]        
Net sales 139.2 134.9 272.8 237.4
Trail Mix and Bars        
Segment Reporting Information [Line Items]        
Net sales 121.9 142.4 227.2 257.9
Pickles        
Segment Reporting Information [Line Items]        
Net sales 94.0 92.4 166.8 166.7
Beverage Enhancers        
Segment Reporting Information [Line Items]        
Net sales $ 78.5 $ 70.9 $ 163.4 $ 151.7
v3.7.0.1
Condensed Supplemental Consolidating Balance Sheet (Detail) - USD ($)
$ in Millions
Jun. 30, 2017
Dec. 31, 2016
Jun. 30, 2016
Dec. 31, 2015
Current assets:        
Cash and cash equivalents $ 174.2 $ 62.1 $ 51.6 $ 34.9
Investments 12.1 10.4    
Accounts receivable, net 352.7 429.0    
Inventories, net 993.1 978.0    
Assets held for sale 2.7 3.6    
Prepaid expenses and other current assets 93.1 77.6    
Total current assets 1,627.9 1,560.7    
Property, plant, and equipment, net 1,296.3 1,359.3    
Goodwill 2,454.2 2,447.2    
Intangible and other assets, net 1,131.5 1,178.6    
Total assets 6,509.9 6,545.8    
Current liabilities:        
Accounts payable and accrued expenses 712.1 626.8    
Current portion of long-term debt 70.9 66.4    
Total current liabilities 783.0 693.2    
Long-term debt 2,568.4 2,724.8    
Deferred income taxes 410.0 422.2    
Other long-term liabilities 205.6 202.3    
Stockholders’ equity 2,542.9 2,503.3    
Total liabilities and stockholders’ equity 6,509.9 6,545.8    
Eliminations        
Current assets:        
Investment in subsidiaries (5,678.8) (5,550.9)    
Deferred income taxes (22.0) (20.7)    
Total assets (5,700.8) (5,571.6)    
Current liabilities:        
Deferred income taxes (22.0) (20.7)    
Stockholders’ equity (5,678.8) (5,550.9)    
Total liabilities and stockholders’ equity (5,700.8) (5,571.6)    
Parent Company        
Current assets:        
Cash and cash equivalents 107.0     10.4
Accounts receivable, net 0.6      
Prepaid expenses and other current assets 61.3 23.6    
Total current assets 168.9 23.6    
Property, plant, and equipment, net 29.8 31.3    
Investment in subsidiaries 5,129.6 5,031.5    
Intercompany accounts receivable (payable), net (174.8) 199.6    
Deferred income taxes 22.0 20.7    
Intangible and other assets, net 59.7 53.9    
Total assets 5,235.2 5,360.6    
Current liabilities:        
Accounts payable and accrued expenses 45.2 61.3    
Current portion of long-term debt 69.5 63.1    
Total current liabilities 114.7 124.4    
Long-term debt 2,566.6 2,722.3    
Other long-term liabilities 11.0 10.6    
Stockholders’ equity 2,542.9 2,503.3    
Total liabilities and stockholders’ equity 5,235.2 5,360.6    
Guarantor Subsidiaries        
Current assets:        
Cash and cash equivalents 0.2 0.2 0.7 0.1
Accounts receivable, net 308.1 372.9    
Inventories, net 867.8 869.6    
Assets held for sale 2.7 3.6    
Prepaid expenses and other current assets 13.7 36.7    
Total current assets 1,192.5 1,283.0    
Property, plant, and equipment, net 1,115.9 1,181.0    
Goodwill 2,333.7 2,330.8    
Investment in subsidiaries 549.2 519.4    
Intercompany accounts receivable (payable), net 168.8 (196.9)    
Intangible and other assets, net 966.8 1,018.0    
Total assets 6,326.9 6,135.3    
Current liabilities:        
Accounts payable and accrued expenses 599.4 493.1    
Current portion of long-term debt 1.3 3.2    
Total current liabilities 600.7 496.3    
Long-term debt 1.6 2.2    
Deferred income taxes 406.1 418.3    
Other long-term liabilities 188.9 187.0    
Stockholders’ equity 5,129.6 5,031.5    
Total liabilities and stockholders’ equity 6,326.9 6,135.3    
Non-Guarantor Subsidiaries        
Current assets:        
Cash and cash equivalents 67.0 61.9 $ 50.9 $ 24.4
Investments 12.1 10.4    
Accounts receivable, net 44.0 56.1    
Inventories, net 125.3 108.4    
Prepaid expenses and other current assets 18.1 17.3    
Total current assets 266.5 254.1    
Property, plant, and equipment, net 150.6 147.0    
Goodwill 120.5 116.4    
Intercompany accounts receivable (payable), net 6.0 (2.7)    
Intangible and other assets, net 105.0 106.7    
Total assets 648.6 621.5    
Current liabilities:        
Accounts payable and accrued expenses 67.5 72.4    
Current portion of long-term debt 0.1 0.1    
Total current liabilities 67.6 72.5    
Long-term debt 0.2 0.3    
Deferred income taxes 25.9 24.6    
Other long-term liabilities 5.7 4.7    
Stockholders’ equity 549.2 519.4    
Total liabilities and stockholders’ equity $ 648.6 $ 621.5    
v3.7.0.1
Condensed Supplemental Consolidating Statement of Operations (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Condensed Financial Statements, Captions [Line Items]        
Net sales $ 1,522.2 $ 1,541.4 $ 3,058.4 $ 2,811.6
Cost of sales 1,245.3 1,275.6 2,495.1 2,321.2
Gross profit 276.9 265.8 563.3 490.4
Selling, general, and administrative expense 177.9 182.4 361.6 362.5
Amortization expense 28.7 28.5 57.3 52.3
Other operating expense, net 94.0 3.3 100.8 5.0
Operating (loss) income (23.7) 51.6 43.6 70.6
Interest expense 31.8 31.5 61.5 57.2
Interest income (0.3) (0.6) (3.1) (3.4)
Other expense (income), net 0.8 (1.5) 1.5 (0.6)
(Loss) income before income taxes (56.0) 22.2 (16.3) 17.4
Income taxes (21.8) 3.2 (10.3) 1.6
Net (loss) income (34.2) 19.0 (6.0) 15.8
Eliminations        
Condensed Financial Statements, Captions [Line Items]        
Net sales (76.6) (72.1) (159.8) (140.5)
Cost of sales (76.6) (72.1) (159.8) (140.5)
Interest expense 0.3 (1.3) (2.6) (2.4)
Interest income (0.3) 1.3 2.6 2.4
Equity in net income (loss) of subsidiaries (18.0) (60.0) (88.1) (105.1)
Net (loss) income (18.0) (60.0) (88.1) (105.1)
Parent Company        
Condensed Financial Statements, Captions [Line Items]        
Selling, general, and administrative expense 34.6 22.9 62.1 76.6
Amortization expense 3.2 2.3 6.1 4.5
Operating (loss) income (37.8) (25.2) (68.2) (81.1)
Interest expense 31.7 31.0 62.9 56.4
Interest income     (2.2) (2.2)
Other expense (income), net 1.5   1.6  
(Loss) income before income taxes (71.0) (56.2) (130.5) (135.3)
Income taxes (27.4) (21.3) (50.2) (51.3)
Equity in net income (loss) of subsidiaries 9.4 53.9 74.3 99.8
Net (loss) income (34.2) 19.0 (6.0) 15.8
Guarantor Subsidiaries        
Condensed Financial Statements, Captions [Line Items]        
Net sales 1,439.9 1,454.5 2,895.3 2,659.3
Cost of sales 1,187.0 1,210.7 2,375.4 2,207.8
Gross profit 252.9 243.8 519.9 451.5
Selling, general, and administrative expense 132.9 143.2 279.5 259.6
Amortization expense 23.1 23.8 46.5 43.2
Other operating expense, net 92.8 2.8 99.4 4.1
Operating (loss) income 4.1 74.0 94.5 144.6
Interest expense   0.4 0.2 0.3
Interest income 0.3 (1.6) (2.6) (2.9)
Other expense (income), net (0.1) 2.7 (0.1) (2.0)
(Loss) income before income taxes 3.9 72.5 97.0 149.2
Income taxes 3.1 24.7 36.5 54.7
Equity in net income (loss) of subsidiaries 8.6 6.1 13.8 5.3
Net (loss) income 9.4 53.9 74.3 99.8
Non-Guarantor Subsidiaries        
Condensed Financial Statements, Captions [Line Items]        
Net sales 158.9 159.0 322.9 292.8
Cost of sales 134.9 137.0 279.5 253.9
Gross profit 24.0 22.0 43.4 38.9
Selling, general, and administrative expense 10.4 16.3 20.0 26.3
Amortization expense 2.4 2.4 4.7 4.6
Other operating expense, net 1.2 0.5 1.4 0.9
Operating (loss) income 10.0 2.8 17.3 7.1
Interest expense (0.2) 1.4 1.0 2.9
Interest income (0.3) (0.3) (0.9) (0.7)
Other expense (income), net (0.6) (4.2)   1.4
(Loss) income before income taxes 11.1 5.9 17.2 3.5
Income taxes 2.5 (0.2) 3.4 (1.8)
Net (loss) income $ 8.6 $ 6.1 $ 13.8 $ 5.3
v3.7.0.1
Condensed Supplemental Consolidating Statement of Comprehensive Income (Loss) (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Condensed Financial Statements, Captions [Line Items]        
Net (loss) income $ (34.2) $ 19.0 $ (6.0) $ 15.8
Other comprehensive income:        
Foreign currency translation adjustments 12.9 4.6 16.5 28.9
Pension and postretirement reclassification adjustment, net of tax [1] 6.8 0.2 7.1 0.5
Other comprehensive income 19.7 4.8 23.6 29.4
Comprehensive (loss) income (14.5) 23.8 17.6 45.2
Eliminations        
Condensed Financial Statements, Captions [Line Items]        
Net (loss) income (18.0) (60.0) (88.1) (105.1)
Other comprehensive income:        
Equity in other comprehensive income (loss) of subsidiaries (32.6) (9.4) (40.1) (58.3)
Comprehensive (loss) income (50.6) (69.4) (128.2) (163.4)
Parent Company        
Condensed Financial Statements, Captions [Line Items]        
Net (loss) income (34.2) 19.0 (6.0) 15.8
Other comprehensive income:        
Equity in other comprehensive income (loss) of subsidiaries 19.7 4.8 23.6 29.4
Comprehensive (loss) income (14.5) 23.8 17.6 45.2
Guarantor Subsidiaries        
Condensed Financial Statements, Captions [Line Items]        
Net (loss) income 9.4 53.9 74.3 99.8
Other comprehensive income:        
Pension and postretirement reclassification adjustment, net of tax 6.8 0.2 7.1 0.5
Other comprehensive income 6.8 0.2 7.1 0.5
Equity in other comprehensive income (loss) of subsidiaries 12.9 4.6 16.5 28.9
Comprehensive (loss) income 29.1 58.7 97.9 129.2
Non-Guarantor Subsidiaries        
Condensed Financial Statements, Captions [Line Items]        
Net (loss) income 8.6 6.1 13.8 5.3
Other comprehensive income:        
Foreign currency translation adjustments 12.9 4.6 16.5 28.9
Other comprehensive income 12.9 4.6 16.5 28.9
Comprehensive (loss) income $ 21.5 $ 10.7 $ 30.3 $ 34.2
[1] Net of tax of $4.2 million and $0.2 million for the three months ended June 30, 2017 and 2016, respectively, and $4.4 million and $0.3 million for the six months ended June 30, 2017 and 2016, respectively.
v3.7.0.1
Condensed Supplemental Consolidating Statement of Cash Flows (Detail) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Cash flows from operating activities:    
Net cash provided by (used in) operating activities $ 327.4 $ 240.5
Cash flows from investing activities:    
Additions to property, plant, and equipment (71.4) (84.0)
Additions to intangible assets (14.0) (5.9)
Acquisitions, less cash acquired   (2,640.2)
Proceeds from sale of fixed assets 1.7 0.1
Proceeds from divestiture 19.3  
Other (0.6) (1.1)
Net cash (used in) provided by investing activities (65.0) (2,731.1)
Cash flows from financing activities:    
Net borrowing (repayment) of debt (154.6) 1,700.8
Payment of deferred financing costs   (34.3)
Net proceeds from issuance of common stock   835.1
Receipts related to stock-based award activities 9.9 7.0
Payments related to stock-based award activities (6.6) (7.8)
Net cash (used in) provided by financing activities (151.3) 2,500.8
Effect of exchange rate changes on cash and cash equivalents 1.0 6.5
Net increase in cash and cash equivalents 112.1 16.7
Cash and cash equivalents, beginning of period 62.1 34.9
Cash and cash equivalents, end of period 174.2 51.6
Eliminations    
Cash flows from operating activities:    
Net cash provided by (used in) operating activities (80.8) (104.7)
Cash flows from investing activities:    
Intercompany transfer (102.3) (67.8)
Net cash (used in) provided by investing activities (102.3) (67.8)
Cash flows from financing activities:    
Intercompany transfer 183.1 172.5
Net cash (used in) provided by financing activities 183.1 172.5
Parent Company    
Cash flows from operating activities:    
Net cash provided by (used in) operating activities (0.4) 52.8
Cash flows from investing activities:    
Additions to property, plant, and equipment (1.3) (1.1)
Additions to intangible assets (13.3) (5.9)
Intercompany transfer 189.7 98.5
Acquisitions, less cash acquired   (2,683.5)
Net cash (used in) provided by investing activities 175.1 (2,592.0)
Cash flows from financing activities:    
Net borrowing (repayment) of debt (152.7) 1,702.9
Payment of deferred financing costs   (34.3)
Intercompany transfer 81.7 25.9
Net proceeds from issuance of common stock   835.1
Receipts related to stock-based award activities 9.9 7.0
Payments related to stock-based award activities (6.6) (7.8)
Net cash (used in) provided by financing activities (67.7) 2,528.8
Net increase in cash and cash equivalents 107.0 (10.4)
Cash and cash equivalents, beginning of period   10.4
Cash and cash equivalents, end of period 107.0  
Guarantor Subsidiaries    
Cash flows from operating activities:    
Net cash provided by (used in) operating activities 400.5 300.2
Cash flows from investing activities:    
Additions to property, plant, and equipment (62.2) (73.9)
Additions to intangible assets (0.7)  
Intercompany transfer (87.3) (30.7)
Acquisitions, less cash acquired   0.3
Proceeds from sale of fixed assets 1.7 0.1
Proceeds from divestiture 19.0  
Other   (0.6)
Net cash (used in) provided by investing activities (129.5) (104.8)
Cash flows from financing activities:    
Net borrowing (repayment) of debt (1.9) (2.1)
Intercompany transfer (269.1) (192.7)
Net cash (used in) provided by financing activities (271.0) (194.8)
Net increase in cash and cash equivalents   0.6
Cash and cash equivalents, beginning of period 0.2 0.1
Cash and cash equivalents, end of period 0.2 0.7
Non-Guarantor Subsidiaries    
Cash flows from operating activities:    
Net cash provided by (used in) operating activities 8.1 (7.8)
Cash flows from investing activities:    
Additions to property, plant, and equipment (7.9) (9.0)
Intercompany transfer (0.1)  
Acquisitions, less cash acquired   43.0
Proceeds from divestiture 0.3  
Other (0.6) (0.5)
Net cash (used in) provided by investing activities (8.3) 33.5
Cash flows from financing activities:    
Intercompany transfer 4.3 (5.7)
Net cash (used in) provided by financing activities 4.3 (5.7)
Effect of exchange rate changes on cash and cash equivalents 1.0 6.5
Net increase in cash and cash equivalents 5.1 26.5
Cash and cash equivalents, beginning of period 61.9 24.4
Cash and cash equivalents, end of period $ 67.0 $ 50.9
v3.7.0.1
Subsequent Events - Additional Information (Detail) - USD ($)
$ in Millions
Aug. 03, 2017
Jun. 30, 2017
Subsequent Event [Line Items]    
Total expected costs   $ 46.0
Asset Related Costs    
Subsequent Event [Line Items]    
Total expected costs   16.8
Employee Related Costs    
Subsequent Event [Line Items]    
Total expected costs   $ 11.8
Subsequent Event | TreeHouse 2020 Restructuring Plan    
Subsequent Event [Line Items]    
Total expected costs $ 44.5  
Expected cash payment 29.7  
Other closure costs 22.7  
Subsequent Event | TreeHouse 2020 Restructuring Plan | Asset Related Costs    
Subsequent Event [Line Items]    
Total expected costs 14.8  
Subsequent Event | TreeHouse 2020 Restructuring Plan | Employee Related Costs    
Subsequent Event [Line Items]    
Total expected costs $ 7.0