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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Lancaster Colony Corporation | NASDAQ:LANC | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 191.43 | 161.00 | 304.37 | 0 | 09:09:48 |
Form 10-K
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x
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Lancaster Colony Corporation
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(Exact name of registrant as specified in its charter)
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||
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Ohio
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13-1955943
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(State or other jurisdiction of
incorporation or organization)
|
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(I.R.S. Employer
Identification No.)
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|
|
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380 Polaris Parkway, Suite 400
Westerville, Ohio
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43082
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(Address of principal executive offices)
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(Zip Code)
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614-224-7141
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(Registrant’s telephone number, including area code)
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Name of each exchange on which registered
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Common Stock, without par value
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NASDAQ Global Select Market
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Large accelerated filer
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x
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Accelerated filer
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¨
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Non-accelerated filer
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¨
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(Do not check if a smaller reporting company)
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Smaller reporting company
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¨
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Emerging growth company
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¨
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Item 1.
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Item 1A.
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Item 1B.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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Item 7.
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Item 7A.
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Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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Item 10.
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Item 11.
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Item 12.
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Item 13.
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Item 14.
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Item 15.
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Food Products
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Brand Names
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Salad dressings and sauces
|
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Marzetti, Marzetti Simply Dressed, Cardini’s, Girard’s
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Vegetable dips and fruit dips
|
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Marzetti
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Frozen garlic breads
|
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New York BRAND Bakery, Mamma Bella, Mamma Bella’s
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Frozen Parkerhouse style yeast rolls and dinner rolls
|
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Sister Schubert’s, Mary B’s
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Premium dry egg noodles
|
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Inn Maid, Amish Kitchens
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Frozen specialty noodles
|
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Reames, Aunt Vi’s
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Croutons and salad toppings
|
|
New York BRAND Bakery, New York BRAND Bakery Texas Toast, Chatham Village, Cardini’s, Marzetti Simply Dressed, Marzetti
|
Flatbread wraps and pizza crusts
|
|
Flatout, ProteinUP
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Sprouted grain bakery products
|
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Angelic Bakehouse, Flatzza
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Caviar
|
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Romanoff
|
|
2017
|
|
2016
|
|
2015
|
Specialty Foods
|
|
|
|
|
|
Non-frozen
|
68%
|
|
69%
|
|
67%
|
Frozen
|
32%
|
|
31%
|
|
33%
|
Location
|
|
Principal Products Involved
|
|
Terms of Occupancy
|
Altoona, IA (1)
|
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Frozen pasta
|
|
Owned/Leased
|
Bedford Heights, OH
|
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Frozen breads
|
|
Owned
|
Columbus, OH (2)
|
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Sauces, dressings, dips, distribution of frozen foods
|
|
Owned/Leased
|
Cudahy, WI
|
|
Sprouted grain bakery products
|
|
Owned
|
Grove City, OH
|
|
Distribution of non-frozen foods
|
|
Owned
|
Horse Cave, KY
|
|
Sauces, dressings, dips, frozen rolls
|
|
Owned
|
Luverne, AL
|
|
Frozen rolls
|
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Owned
|
Milpitas, CA (3)
|
|
Sauces and dressings
|
|
Owned/Leased
|
Saline, MI (4)
|
|
Flatbread wraps and pizza crusts
|
|
Owned/Leased
|
Wareham, MA (5)
|
|
Croutons
|
|
Leased
|
(1)
|
Part leased for term expiring in fiscal 2020
|
(2)
|
Part leased for term expiring in fiscal 2022
|
(3)
|
Part leased for term expiring in fiscal 2021
|
(4)
|
Part leased for term expiring in fiscal 2018
|
(5)
|
Fully leased for term expiring in fiscal 2019
|
|
Stock Prices
|
|
Dividends Paid Per Share
|
||||||||
|
High
|
|
Low
|
|
|
||||||
2017
|
|
|
|
|
|
||||||
First Quarter
|
$
|
137.71
|
|
|
$
|
117.50
|
|
|
$
|
0.50
|
|
Second Quarter
|
$
|
143.67
|
|
|
$
|
125.71
|
|
|
0.55
|
|
|
Third Quarter
|
$
|
149.30
|
|
|
$
|
125.82
|
|
|
0.55
|
|
|
Fourth Quarter
|
$
|
131.79
|
|
|
$
|
119.38
|
|
|
0.55
|
|
|
Year
|
|
|
|
|
$
|
2.15
|
|
||||
|
|
|
|
|
|
||||||
2016
|
|
|
|
|
|
||||||
First Quarter
|
$
|
101.63
|
|
|
$
|
89.62
|
|
|
$
|
0.46
|
|
Second Quarter (includes special dividend of $5.00 per share)
|
$
|
118.74
|
|
|
$
|
95.47
|
|
|
5.50
|
|
|
Third Quarter
|
$
|
119.80
|
|
|
$
|
95.78
|
|
|
0.50
|
|
|
Fourth Quarter
|
$
|
128.07
|
|
|
$
|
107.29
|
|
|
0.50
|
|
|
Year
|
|
|
|
|
$
|
6.96
|
|
Period
|
Total
Number
of Shares
Purchased
|
|
Average
Price Paid
Per Share
|
|
Total
Number of
Shares
Purchased
as Part of
Publicly
Announced
Plans
|
|
Maximum
Number of
Shares that
May Yet be
Purchased
Under the
Plans
|
|||||
April 1-30, 2017
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
1,411,680
|
|
May 1-31, 2017
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
1,411,680
|
|
June 1-30, 2017
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
1,411,680
|
|
Total
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
1,411,680
|
|
Cumulative Total Return (Dollars)
|
||||||||||||
|
|
6/12
|
|
6/13
|
|
6/14
|
|
6/15
|
|
6/16
|
|
6/17
|
Lancaster Colony Corporation
|
|
100.00
|
|
119.53
|
|
148.80
|
|
144.95
|
|
216.45
|
|
211.40
|
S&P Midcap 400
|
|
100.00
|
|
125.18
|
|
156.78
|
|
166.81
|
|
169.03
|
|
200.41
|
Dow Jones U.S. Food Producers
|
|
100.00
|
|
128.47
|
|
154.51
|
|
172.44
|
|
204.96
|
|
196.69
|
|
Years Ended June 30,
|
||||||||||||||||||
(Thousands Except Per Share Figures)
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Operations
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Sales (1)
|
$
|
1,201,842
|
|
|
$
|
1,191,109
|
|
|
$
|
1,104,514
|
|
|
$
|
1,041,075
|
|
|
$
|
1,013,803
|
|
Gross Profit (1)
|
$
|
318,764
|
|
|
$
|
299,629
|
|
|
$
|
257,692
|
|
|
$
|
248,568
|
|
|
$
|
244,707
|
|
Percent of Net Sales
|
26.5
|
%
|
|
25.2
|
%
|
|
23.3
|
%
|
|
23.9
|
%
|
|
24.1
|
%
|
|||||
Multiemployer Pension Settlement and Related Costs
|
$
|
17,635
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Income From Continuing Operations Before Income Taxes (1)
|
$
|
175,516
|
|
|
$
|
184,633
|
|
|
$
|
154,552
|
|
|
$
|
153,279
|
|
|
$
|
153,818
|
|
Percent of Net Sales
|
14.6
|
%
|
|
15.5
|
%
|
|
14.0
|
%
|
|
14.7
|
%
|
|
15.2
|
%
|
|||||
Taxes Based on Income (1)
|
$
|
60,202
|
|
|
$
|
62,869
|
|
|
$
|
52,866
|
|
|
$
|
52,293
|
|
|
$
|
49,958
|
|
Income From Continuing Operations (1)
|
$
|
115,314
|
|
|
$
|
121,764
|
|
|
$
|
101,686
|
|
|
$
|
100,986
|
|
|
$
|
103,860
|
|
Percent of Net Sales
|
9.6
|
%
|
|
10.2
|
%
|
|
9.2
|
%
|
|
9.7
|
%
|
|
10.2
|
%
|
|||||
Continuing Operations Diluted Net Income Per Common Share (1)
|
$
|
4.20
|
|
|
$
|
4.44
|
|
|
$
|
3.72
|
|
|
$
|
3.69
|
|
|
$
|
3.79
|
|
Cash Dividends Per Common Share - Regular
|
$
|
2.15
|
|
|
$
|
1.96
|
|
|
$
|
1.82
|
|
|
$
|
1.72
|
|
|
$
|
1.52
|
|
Cash Dividends Per Common Share - Special
|
$
|
—
|
|
|
$
|
5.00
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5.00
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Position
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Assets (2)
|
$
|
716,405
|
|
|
$
|
634,732
|
|
|
$
|
702,156
|
|
|
$
|
627,301
|
|
|
$
|
606,260
|
|
Property, Plant and Equipment-Net (1)
|
$
|
180,671
|
|
|
$
|
169,595
|
|
|
$
|
172,311
|
|
|
$
|
168,674
|
|
|
$
|
168,074
|
|
Property Additions (1) (3)
|
$
|
27,005
|
|
|
$
|
16,671
|
|
|
$
|
18,298
|
|
|
$
|
15,645
|
|
|
$
|
23,460
|
|
Depreciation and Amortization (1)
|
$
|
24,906
|
|
|
$
|
24,147
|
|
|
$
|
21,111
|
|
|
$
|
18,993
|
|
|
$
|
17,617
|
|
Long-Term Debt
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Shareholders’ Equity
|
$
|
575,977
|
|
|
$
|
513,598
|
|
|
$
|
580,918
|
|
|
$
|
528,597
|
|
|
$
|
501,222
|
|
Per Common Share
|
$
|
20.98
|
|
|
$
|
18.73
|
|
|
$
|
21.23
|
|
|
$
|
19.33
|
|
|
$
|
18.34
|
|
Weighted Average Common Shares Outstanding-Diluted
|
27,440
|
|
|
27,373
|
|
|
27,327
|
|
|
27,308
|
|
|
27,285
|
|
(1)
|
Amounts for
2013
-2014 exclude the impact of the discontinued Glassware & Candles segment operations.
|
(2)
|
Certain prior-year balances were reclassified in 2016 to reflect the impact of the adoption of new accounting guidance about the presentation of deferred tax assets and liabilities. With the adoption, our net deferred tax liability for all periods presented has been classified as noncurrent.
|
(3)
|
Amounts for 2017 and 2015 exclude property obtained in acquisitions (
$5.1 million
in the 2017 acquisition of Angelic Bakehouse and
$6.9 million
in the 2015 acquisition of Flatout).
|
•
|
leading retail market positions in several product categories with a high-quality perception;
|
•
|
recognized innovation in retail products;
|
•
|
a broad customer base in both retail and foodservice accounts;
|
•
|
well-regarded culinary expertise among foodservice customers;
|
•
|
recognized leadership in foodservice product development;
|
•
|
experience in integrating complementary business acquisitions; and
|
•
|
historically strong cash flow generation that supports growth opportunities.
|
•
|
leveraging the strength of our retail brands to increase current product sales;
|
•
|
introducing new retail products and expanding distribution;
|
•
|
continuing to rely upon the strength of our reputation in foodservice product development and quality; and
|
•
|
pursuing acquisitions that meet our strategic criteria.
|
|
Year Ended June 30,
|
|
Change
|
||||||||||||||||||||||
(Dollars in thousands)
|
2017
|
|
2016
|
|
2015
|
|
2017 vs. 2016
|
|
2016 vs. 2015
|
||||||||||||||||
Net Sales
|
$
|
1,201,842
|
|
|
$
|
1,191,109
|
|
|
$
|
1,104,514
|
|
|
$
|
10,733
|
|
|
1
|
%
|
|
$
|
86,595
|
|
|
8
|
%
|
Gross Profit
|
$
|
318,764
|
|
|
$
|
299,629
|
|
|
$
|
257,692
|
|
|
$
|
19,135
|
|
|
6
|
%
|
|
$
|
41,937
|
|
|
16
|
%
|
Gross Margin
|
26.5
|
%
|
|
25.2
|
%
|
|
23.3
|
%
|
|
|
|
|
|
|
|
|
|
Year Ended June 30,
|
|
Change
|
||||||||||||||||||||||
(Dollars in thousands)
|
2017
|
|
2016
|
|
2015
|
|
2017 vs. 2016
|
|
2016 vs. 2015
|
||||||||||||||||
SG&A Expenses
|
$
|
126,381
|
|
|
$
|
115,059
|
|
|
$
|
102,831
|
|
|
$
|
11,322
|
|
|
10
|
%
|
|
$
|
12,228
|
|
|
12
|
%
|
SG&A Expenses as a Percentage of Net Sales
|
10.5
|
%
|
|
9.7
|
%
|
|
9.3
|
%
|
|
|
|
|
|
|
|
|
|
Year Ended June 30,
|
|
Change
|
||||||||||||||||||||||
(Dollars in thousands)
|
2017
|
|
2016
|
|
2015
|
|
2017 vs. 2016
|
|
2016 vs. 2015
|
||||||||||||||||
Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Specialty Foods
|
$
|
187,051
|
|
|
$
|
196,592
|
|
|
$
|
167,095
|
|
|
$
|
(9,541
|
)
|
|
(5
|
)%
|
|
$
|
29,497
|
|
|
18
|
%
|
Corporate Expenses
|
(12,303
|
)
|
|
(12,022
|
)
|
|
(12,234
|
)
|
|
(281
|
)
|
|
2
|
%
|
|
212
|
|
|
(2
|
)%
|
|||||
Total
|
$
|
174,748
|
|
|
$
|
184,570
|
|
|
$
|
154,861
|
|
|
$
|
(9,822
|
)
|
|
(5
|
)%
|
|
$
|
29,709
|
|
|
19
|
%
|
Operating Income as a Percentage of Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Specialty Foods
|
15.6
|
%
|
|
16.5
|
%
|
|
15.1
|
%
|
|
|
|
|
|
|
|
|
|||||||||
Total
|
14.5
|
%
|
|
15.5
|
%
|
|
14.0
|
%
|
|
|
|
|
|
|
|
|
|
Year Ended June 30,
|
|
Change
|
||||||||||||||||||||||
(Dollars in thousands)
|
2017
|
|
2016
|
|
2015
|
|
2017 vs. 2016
|
|
2016 vs. 2015
|
||||||||||||||||
Provided By Operating Activities
|
$
|
144,355
|
|
|
$
|
142,585
|
|
|
$
|
132,772
|
|
|
$
|
1,770
|
|
|
1
|
%
|
|
$
|
9,813
|
|
|
7
|
%
|
Used In Investing Activities
|
$
|
(60,608
|
)
|
|
$
|
(17,423
|
)
|
|
$
|
(112,325
|
)
|
|
$
|
(43,185
|
)
|
|
N/M
|
|
|
$
|
94,902
|
|
|
84
|
%
|
Used In Financing Activities
|
$
|
(58,723
|
)
|
|
$
|
(189,284
|
)
|
|
$
|
(49,784
|
)
|
|
$
|
130,561
|
|
|
69
|
%
|
|
$
|
(139,500
|
)
|
|
N/M
|
|
|
Payment Due by Period
|
||||||||||||||||||
Contractual Obligations
|
Total
|
|
Less than 1 Year
|
|
1-3 Years
|
|
3-5 Years
|
|
More than 5 Years
|
||||||||||
Operating Lease Obligations (1)
|
$
|
27,209
|
|
|
$
|
6,446
|
|
|
$
|
10,744
|
|
|
$
|
5,402
|
|
|
$
|
4,617
|
|
Purchase Obligations (2)
|
181,109
|
|
|
160,444
|
|
|
19,130
|
|
|
1,185
|
|
|
350
|
|
|||||
Other Noncurrent Liabilities (as reflected on Consolidated Balance Sheet) (3)
|
15,515
|
|
|
—
|
|
|
487
|
|
|
15,028
|
|
|
—
|
|
|||||
Total
|
$
|
223,833
|
|
|
$
|
166,890
|
|
|
$
|
30,361
|
|
|
$
|
21,615
|
|
|
$
|
4,967
|
|
(1)
|
Operating leases are primarily entered into for warehouse and office facilities and certain equipment. See Note 5 to the consolidated financial statements for further information.
|
(2)
|
Purchase obligations represent purchase orders and longer-term purchase arrangements related to the procurement of raw materials, supplies, services, and property, plant and equipment.
|
(3)
|
This amount does not include $23.1 million of other noncurrent liabilities recorded on the balance sheet, which largely consist of the underfunded defined benefit pension liability, other post employment benefit obligations, tax liabilities, noncurrent workers compensation obligations, deferred compensation and interest on deferred compensation. These items are excluded, as it is not certain when these liabilities will become due. See Notes 9, 12 and 13 to the consolidated financial statements for further information.
|
•
|
price and product competition;
|
•
|
the impact of customer store brands on our branded retail volumes;
|
•
|
the effect of consolidation of customers within key market channels;
|
•
|
fluctuations in the cost and availability of ingredients and packaging;
|
•
|
the reaction of customers or consumers to the effect of price increases we may implement;
|
•
|
adverse changes in freight, energy or other costs of producing, distributing or transporting our products;
|
•
|
the success and cost of new product development efforts;
|
•
|
the lack of market acceptance of new products;
|
•
|
the ability to successfully grow recently acquired businesses;
|
•
|
the extent to which future business acquisitions are completed and acceptably integrated;
|
•
|
the possible occurrence of product recalls or other defective or mislabeled product costs;
|
•
|
dependence on key personnel and changes in key personnel;
|
•
|
the impact of any regulatory matters affecting our food business, including any required labeling changes and their impact on consumer demand;
|
•
|
the potential for loss of larger programs or key customer relationships;
|
•
|
changes in demand for our products, which may result from loss of brand reputation or customer goodwill;
|
•
|
maintenance of competitive position with respect to other manufacturers;
|
•
|
capacity constraints that may affect our ability to meet demand or may increase our costs;
|
•
|
dependence on contract manufacturers;
|
•
|
efficiencies in plant operations;
|
•
|
stability of labor relations;
|
•
|
the outcome of any litigation or arbitration;
|
•
|
the impact, if any, of certain contingent liabilities associated with our withdrawal from a multiemployer pension plan;
|
•
|
the impact of fluctuations in our pension plan asset values on funding levels, contributions required and benefit costs;
|
•
|
changes in estimates in critical accounting judgments; and
|
•
|
certain other risk factors, including those discussed in other filings we have submitted to the Securities and Exchange Commission.
|
/s/ Deloitte & Touche LLP
|
Deloitte & Touche LLP
|
|
June 30,
|
||||||
(Amounts in thousands, except share data)
|
2017
|
|
2016
|
||||
ASSETS
|
|||||||
Current Assets:
|
|
|
|
||||
Cash and equivalents
|
$
|
143,104
|
|
|
$
|
118,080
|
|
Receivables
|
69,922
|
|
|
66,006
|
|
||
Inventories:
|
|
|
|
||||
Raw materials
|
28,447
|
|
|
26,153
|
|
||
Finished goods
|
47,929
|
|
|
49,944
|
|
||
Total inventories
|
76,376
|
|
|
76,097
|
|
||
Other current assets
|
11,744
|
|
|
7,644
|
|
||
Total current assets
|
301,146
|
|
|
267,827
|
|
||
Property, Plant and Equipment:
|
|
|
|
||||
Land, buildings and improvements
|
124,673
|
|
|
116,858
|
|
||
Machinery and equipment
|
272,582
|
|
|
263,336
|
|
||
Total cost
|
397,255
|
|
|
380,194
|
|
||
Less accumulated depreciation
|
216,584
|
|
|
210,599
|
|
||
Property, plant and equipment-net
|
180,671
|
|
|
169,595
|
|
||
Other Assets:
|
|
|
|
||||
Goodwill
|
168,030
|
|
|
143,788
|
|
||
Other intangible assets-net
|
60,162
|
|
|
44,866
|
|
||
Other noncurrent assets
|
6,396
|
|
|
8,656
|
|
||
Total
|
$
|
716,405
|
|
|
$
|
634,732
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|||||||
Current Liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
41,353
|
|
|
$
|
39,931
|
|
Accrued liabilities
|
35,270
|
|
|
33,072
|
|
||
Total current liabilities
|
76,623
|
|
|
73,003
|
|
||
Other Noncurrent Liabilities
|
38,598
|
|
|
26,698
|
|
||
Deferred Income Taxes
|
25,207
|
|
|
21,433
|
|
||
Commitments and Contingencies
|
|
|
|
||||
Shareholders’ Equity:
|
|
|
|
||||
Preferred stock-authorized 3,050,000 shares; outstanding-none
|
|
|
|
||||
Common stock-authorized 75,000,000 shares; outstanding-2017-27,448,424 shares; 2016-27,423,550 shares
|
115,174
|
|
|
110,677
|
|
||
Retained earnings
|
1,206,671
|
|
|
1,150,337
|
|
||
Accumulated other comprehensive loss
|
(8,936
|
)
|
|
(11,350
|
)
|
||
Common stock in treasury, at cost
|
(736,932
|
)
|
|
(736,066
|
)
|
||
Total shareholders’ equity
|
575,977
|
|
|
513,598
|
|
||
Total
|
$
|
716,405
|
|
|
$
|
634,732
|
|
|
Years Ended June 30,
|
||||||||||
(Amounts in thousands, except per share data)
|
2017
|
|
2016
|
|
2015
|
||||||
Net Sales
|
$
|
1,201,842
|
|
|
$
|
1,191,109
|
|
|
$
|
1,104,514
|
|
Cost of Sales
|
883,078
|
|
|
891,480
|
|
|
846,822
|
|
|||
Gross Profit
|
318,764
|
|
|
299,629
|
|
|
257,692
|
|
|||
Selling, General and Administrative Expenses
|
126,381
|
|
|
115,059
|
|
|
102,831
|
|
|||
Multiemployer Pension Settlement and Related Costs
|
17,635
|
|
|
—
|
|
|
—
|
|
|||
Operating Income
|
174,748
|
|
|
184,570
|
|
|
154,861
|
|
|||
Other, Net
|
768
|
|
|
63
|
|
|
(309
|
)
|
|||
Income Before Income Taxes
|
175,516
|
|
|
184,633
|
|
|
154,552
|
|
|||
Taxes Based on Income
|
60,202
|
|
|
62,869
|
|
|
52,866
|
|
|||
Net Income
|
$
|
115,314
|
|
|
$
|
121,764
|
|
|
$
|
101,686
|
|
Net Income Per Common Share:
|
|
|
|
|
|
||||||
Basic
|
$
|
4.21
|
|
|
$
|
4.45
|
|
|
$
|
3.72
|
|
Diluted
|
$
|
4.20
|
|
|
$
|
4.44
|
|
|
$
|
3.72
|
|
Weighted Average Common Shares Outstanding:
|
|
|
|
|
|
||||||
Basic
|
27,376
|
|
|
27,336
|
|
|
27,300
|
|
|||
Diluted
|
27,440
|
|
|
27,373
|
|
|
27,327
|
|
|
Years Ended June 30,
|
||||||||||
(Amounts in thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Net Income
|
$
|
115,314
|
|
|
$
|
121,764
|
|
|
$
|
101,686
|
|
Other Comprehensive Income (Loss):
|
|
|
|
|
|
||||||
Defined Benefit Pension and Postretirement Benefit Plans:
|
|
|
|
|
|
||||||
Net gain (loss) arising during the period, before tax
|
3,334
|
|
|
(4,200
|
)
|
|
(3,563
|
)
|
|||
Prior service credit arising during the period, before tax
|
—
|
|
|
1,770
|
|
|
—
|
|
|||
Amortization of loss, before tax
|
677
|
|
|
505
|
|
|
401
|
|
|||
Amortization of prior service credit, before tax
|
(182
|
)
|
|
(126
|
)
|
|
(5
|
)
|
|||
Total Other Comprehensive Income (Loss), Before Tax
|
3,829
|
|
|
(2,051
|
)
|
|
(3,167
|
)
|
|||
Tax Attributes of Items in Other Comprehensive Income (Loss):
|
|
|
|
|
|
||||||
Net gain (loss) arising during the period, tax
|
(1,231
|
)
|
|
1,551
|
|
|
1,318
|
|
|||
Prior service credit arising during the period, tax
|
—
|
|
|
(654
|
)
|
|
—
|
|
|||
Amortization of loss, tax
|
(250
|
)
|
|
(186
|
)
|
|
(149
|
)
|
|||
Amortization of prior service credit, tax
|
66
|
|
|
47
|
|
|
2
|
|
|||
Total Tax (Expense) Benefit
|
(1,415
|
)
|
|
758
|
|
|
1,171
|
|
|||
Other Comprehensive Income (Loss), Net of Tax
|
2,414
|
|
|
(1,293
|
)
|
|
(1,996
|
)
|
|||
Comprehensive Income
|
$
|
117,728
|
|
|
$
|
120,471
|
|
|
$
|
99,690
|
|
|
Years Ended June 30,
|
||||||||||
(Amounts in thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Cash Flows From Operating Activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
115,314
|
|
|
$
|
121,764
|
|
|
$
|
101,686
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Impacts of noncash items:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
24,906
|
|
|
24,147
|
|
|
21,111
|
|
|||
Change in acquisition-related contingent consideration
|
1,156
|
|
|
—
|
|
|
—
|
|
|||
Deferred income taxes and other changes
|
2,347
|
|
|
(525
|
)
|
|
306
|
|
|||
Stock-based compensation expense
|
4,248
|
|
|
3,326
|
|
|
3,040
|
|
|||
Excess tax benefit from stock-based compensation
|
(1,123
|
)
|
|
(1,417
|
)
|
|
(563
|
)
|
|||
Gain on sale of property
|
(629
|
)
|
|
—
|
|
|
—
|
|
|||
Pension plan activity
|
(244
|
)
|
|
(296
|
)
|
|
(591
|
)
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Receivables
|
(2,598
|
)
|
|
(3,547
|
)
|
|
(1,900
|
)
|
|||
Inventories
|
150
|
|
|
1,802
|
|
|
366
|
|
|||
Other current assets
|
(2,958
|
)
|
|
1,445
|
|
|
5,229
|
|
|||
Accounts payable and accrued liabilities
|
3,786
|
|
|
(4,114
|
)
|
|
4,088
|
|
|||
Net cash provided by operating activities
|
144,355
|
|
|
142,585
|
|
|
132,772
|
|
|||
Cash Flows From Investing Activities:
|
|
|
|
|
|
||||||
Cash paid for acquisitions, net of cash acquired
|
(35,169
|
)
|
|
(12
|
)
|
|
(92,217
|
)
|
|||
Payments for property additions
|
(27,005
|
)
|
|
(16,671
|
)
|
|
(18,298
|
)
|
|||
Proceeds from sale of property
|
1,475
|
|
|
—
|
|
|
—
|
|
|||
Other-net
|
91
|
|
|
(740
|
)
|
|
(1,810
|
)
|
|||
Net cash used in investing activities
|
(60,608
|
)
|
|
(17,423
|
)
|
|
(112,325
|
)
|
|||
Cash Flows From Financing Activities:
|
|
|
|
|
|
||||||
Purchase of treasury stock
|
(866
|
)
|
|
(155
|
)
|
|
(569
|
)
|
|||
Payment of dividends (including special dividend payment, 2017-$0; 2016-$136,677; 2015-$0)
|
(58,980
|
)
|
|
(190,546
|
)
|
|
(49,778
|
)
|
|||
Excess tax benefit from stock-based compensation
|
1,123
|
|
|
1,417
|
|
|
563
|
|
|||
Net cash used in financing activities
|
(58,723
|
)
|
|
(189,284
|
)
|
|
(49,784
|
)
|
|||
Net change in cash and equivalents
|
25,024
|
|
|
(64,122
|
)
|
|
(29,337
|
)
|
|||
Cash and equivalents at beginning of year
|
118,080
|
|
|
182,202
|
|
|
211,539
|
|
|||
Cash and equivalents at end of year
|
$
|
143,104
|
|
|
$
|
118,080
|
|
|
$
|
182,202
|
|
(Amounts in thousands,
except per share data)
|
|
Common Stock
Outstanding
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Treasury
Stock
|
|
Total
Shareholders’
Equity
|
|||||||||||||
|
Shares
|
|
Amount
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, June 30, 2014
|
|
27,339
|
|
|
$
|
104,789
|
|
|
$
|
1,167,211
|
|
|
$
|
(8,061
|
)
|
|
$
|
(735,342
|
)
|
|
$
|
528,597
|
|
Net income
|
|
|
|
|
|
101,686
|
|
|
|
|
|
|
101,686
|
|
|||||||||
Net pension and postretirement benefit losses, net of ($1,171) tax effect
|
|
|
|
|
|
|
|
(1,996
|
)
|
|
|
|
(1,996
|
)
|
|||||||||
Cash dividends - common stock ($1.82 per share)
|
|
|
|
|
|
(49,778
|
)
|
|
|
|
|
|
(49,778
|
)
|
|||||||||
Purchase of treasury stock
|
|
(6
|
)
|
|
|
|
|
|
|
|
(569
|
)
|
|
(569
|
)
|
||||||||
Stock-based plans, including excess tax benefits
|
|
28
|
|
|
(62
|
)
|
|
|
|
|
|
|
|
(62
|
)
|
||||||||
Stock-based compensation expense
|
|
|
|
3,040
|
|
|
|
|
|
|
|
|
3,040
|
|
|||||||||
Balance, June 30, 2015
|
|
27,361
|
|
|
107,767
|
|
|
1,219,119
|
|
|
(10,057
|
)
|
|
(735,911
|
)
|
|
580,918
|
|
|||||
Net income
|
|
|
|
|
|
121,764
|
|
|
|
|
|
|
121,764
|
|
|||||||||
Net pension and postretirement benefit losses, net of ($758) tax effect
|
|
|
|
|
|
|
|
(1,293
|
)
|
|
|
|
(1,293
|
)
|
|||||||||
Cash dividends - common stock ($6.96 per share)
|
|
|
|
|
|
(190,546
|
)
|
|
|
|
|
|
(190,546
|
)
|
|||||||||
Purchase of treasury stock
|
|
(2
|
)
|
|
|
|
|
|
|
|
(155
|
)
|
|
(155
|
)
|
||||||||
Stock-based plans, including excess tax benefits
|
|
65
|
|
|
(416
|
)
|
|
|
|
|
|
|
|
(416
|
)
|
||||||||
Stock-based compensation expense
|
|
|
|
3,326
|
|
|
|
|
|
|
|
|
3,326
|
|
|||||||||
Balance, June 30, 2016
|
|
27,424
|
|
|
110,677
|
|
|
1,150,337
|
|
|
(11,350
|
)
|
|
(736,066
|
)
|
|
513,598
|
|
|||||
Net income
|
|
|
|
|
|
115,314
|
|
|
|
|
|
|
115,314
|
|
|||||||||
Net pension and postretirement benefit gains, net of $1,415 tax effect
|
|
|
|
|
|
|
|
2,414
|
|
|
|
|
2,414
|
|
|||||||||
Cash dividends - common stock ($2.15 per share)
|
|
|
|
|
|
(58,980
|
)
|
|
|
|
|
|
(58,980
|
)
|
|||||||||
Purchase of treasury stock
|
|
(6
|
)
|
|
|
|
|
|
|
|
(866
|
)
|
|
(866
|
)
|
||||||||
Stock-based plans, including excess tax benefits
|
|
30
|
|
|
249
|
|
|
|
|
|
|
|
|
249
|
|
||||||||
Stock-based compensation expense
|
|
|
|
4,248
|
|
|
|
|
|
|
|
|
4,248
|
|
|||||||||
Balance, June 30, 2017
|
|
27,448
|
|
|
$
|
115,174
|
|
|
$
|
1,206,671
|
|
|
$
|
(8,936
|
)
|
|
$
|
(736,932
|
)
|
|
$
|
575,977
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Construction in progress in Accounts Payable
|
$
|
622
|
|
|
$
|
1,000
|
|
|
$
|
189
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Depreciation expense
|
$
|
20,430
|
|
|
$
|
20,114
|
|
|
$
|
18,867
|
|
|
2017
|
|
2016
|
|
2015
|
|||
Advertising expense as a percentage of net sales
|
3
|
%
|
|
3
|
%
|
|
2
|
%
|
|
2017
|
|
2016
|
|
2015
|
||||||
Net income
|
$
|
115,314
|
|
|
$
|
121,764
|
|
|
$
|
101,686
|
|
Net income available to participating securities
|
(196
|
)
|
|
(242
|
)
|
|
(143
|
)
|
|||
Net income available to common shareholders
|
$
|
115,118
|
|
|
$
|
121,522
|
|
|
$
|
101,543
|
|
|
|
|
|
|
|
||||||
Weighted average common shares outstanding - basic
|
27,376
|
|
|
27,336
|
|
|
27,300
|
|
|||
Incremental share effect from:
|
|
|
|
|
|
||||||
Nonparticipating restricted stock
|
3
|
|
|
3
|
|
|
3
|
|
|||
Stock-settled stock appreciation rights
|
61
|
|
|
34
|
|
|
24
|
|
|||
Weighted average common shares outstanding - diluted
|
27,440
|
|
|
27,373
|
|
|
27,327
|
|
|||
|
|
|
|
|
|
||||||
Net income per common share - basic
|
$
|
4.21
|
|
|
$
|
4.45
|
|
|
$
|
3.72
|
|
Net income per common share - diluted
|
$
|
4.20
|
|
|
$
|
4.44
|
|
|
$
|
3.72
|
|
|
2017
|
|
2016
|
||||
Accumulated other comprehensive loss at beginning of year
|
$
|
(11,350
|
)
|
|
$
|
(10,057
|
)
|
Defined Benefit Pension Plan Items:
|
|
|
|
||||
Net gain (loss) arising during the period
|
3,339
|
|
|
(4,409
|
)
|
||
Amortization of unrecognized net loss
(1)
|
715
|
|
|
539
|
|
||
Postretirement Benefit Plan Items:
|
|
|
|
||||
Net (loss) gain arising during the period
(2)
|
(5
|
)
|
|
209
|
|
||
Prior service credit arising during the period
(2)
|
—
|
|
|
1,770
|
|
||
Amortization of unrecognized net gain
|
(38
|
)
|
|
(34
|
)
|
||
Amortization of prior service credit
|
(182
|
)
|
|
(126
|
)
|
||
Total other comprehensive income (loss), before tax
|
3,829
|
|
|
(2,051
|
)
|
||
Total tax (expense) benefit
|
(1,415
|
)
|
|
758
|
|
||
Other comprehensive income (loss), net of tax
|
2,414
|
|
|
(1,293
|
)
|
||
Accumulated other comprehensive loss at end of year
|
$
|
(8,936
|
)
|
|
$
|
(11,350
|
)
|
(1)
|
Included in the computation of net periodic benefit income/cost. See Note 12 for additional information.
|
(2)
|
Amounts for 2016 include a negative plan amendment and subsequent remeasurement. Additional disclosures for postretirement benefits are not included as they are not considered material.
|
Consideration
|
|
||
Purchase price
|
$
|
35,487
|
|
Contingent consideration - fair value of earn-out at date of closing
|
13,872
|
|
|
Fair value of total consideration
|
$
|
49,359
|
|
|
|
||
Purchase Price Allocation
|
|
||
Trade receivables
|
$
|
831
|
|
Other receivables
|
550
|
|
|
Inventories
|
430
|
|
|
Other current assets
|
19
|
|
|
Property, plant and equipment
|
5,083
|
|
|
Goodwill (tax deductible)
|
24,242
|
|
|
Other intangible assets
|
18,749
|
|
|
Current liabilities
|
(545
|
)
|
|
Net assets acquired
|
$
|
49,359
|
|
|
Fair Value Measurements at June 30, 2017
|
|||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||
Acquisition-related contingent consideration
|
$
|
—
|
|
$
|
—
|
|
$
|
15,028
|
|
$
|
15,028
|
|
|
2017
|
||
Acquisition-related contingent consideration at beginning of year
|
$
|
—
|
|
Additions
|
13,872
|
|
|
Changes in fair value included in Selling, General and Administrative Expenses
|
1,156
|
|
|
Acquisition-related contingent consideration at end of year
|
$
|
15,028
|
|
|
|
||
2018
|
$
|
6,446
|
|
2019
|
$
|
6,505
|
|
2020
|
$
|
4,239
|
|
2021
|
$
|
3,030
|
|
2022
|
$
|
2,372
|
|
Thereafter
|
$
|
4,617
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Operating leases:
|
|
|
|
|
|
||||||
Minimum rentals
|
$
|
6,529
|
|
|
$
|
5,298
|
|
|
$
|
5,036
|
|
Contingent rentals
|
4
|
|
|
11
|
|
|
6
|
|
|||
Short-term cancelable leases
|
1,508
|
|
|
1,611
|
|
|
900
|
|
|||
Total
|
$
|
8,041
|
|
|
$
|
6,920
|
|
|
$
|
5,942
|
|
|
Carrying Value
|
||
Goodwill at beginning of year
|
$
|
143,788
|
|
Goodwill acquired during the year
|
24,242
|
|
|
Goodwill at end of year
|
$
|
168,030
|
|
|
2017
|
|
2016
|
||||
Tradenames (20 to 30-year life)
|
|
|
|
||||
Gross carrying value
|
$
|
50,321
|
|
|
$
|
34,500
|
|
Accumulated amortization
|
(3,130
|
)
|
|
(1,485
|
)
|
||
Net carrying value
|
$
|
47,191
|
|
|
$
|
33,015
|
|
Trademarks (40-year life)
|
|
|
|
||||
Gross carrying value
|
$
|
370
|
|
|
$
|
370
|
|
Accumulated amortization
|
(241
|
)
|
|
(232
|
)
|
||
Net carrying value
|
$
|
129
|
|
|
$
|
138
|
|
Customer Relationships (10 to 15-year life)
|
|
|
|
||||
Gross carrying value
|
$
|
14,207
|
|
|
$
|
18,020
|
|
Accumulated amortization
|
(7,160
|
)
|
|
(10,148
|
)
|
||
Net carrying value
|
$
|
7,047
|
|
|
$
|
7,872
|
|
Technology / Know-how (10-year life)
|
|
|
|
||||
Gross carrying value
|
$
|
6,350
|
|
|
$
|
3,900
|
|
Accumulated amortization
|
(1,047
|
)
|
|
(504
|
)
|
||
Net carrying value
|
$
|
5,303
|
|
|
$
|
3,396
|
|
Non-compete Agreements (5-year life)
|
|
|
|
||||
Gross carrying value
|
$
|
791
|
|
|
$
|
600
|
|
Accumulated amortization
|
(299
|
)
|
|
(155
|
)
|
||
Net carrying value
|
$
|
492
|
|
|
$
|
445
|
|
Total net carrying value
|
$
|
60,162
|
|
|
$
|
44,866
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Amortization expense
|
$
|
3,453
|
|
|
$
|
2,905
|
|
|
$
|
1,605
|
|
|
|
||
2018
|
$
|
3,867
|
|
2019
|
$
|
3,867
|
|
2020
|
$
|
3,832
|
|
2021
|
$
|
3,747
|
|
2022
|
$
|
3,673
|
|
|
2017
|
|
2016
|
||||
Compensation and employee benefits
|
$
|
21,864
|
|
|
$
|
21,565
|
|
Distribution
|
7,711
|
|
|
4,450
|
|
||
Other taxes
|
1,266
|
|
|
1,266
|
|
||
Marketing
|
1,197
|
|
|
1,107
|
|
||
Other
|
3,232
|
|
|
4,684
|
|
||
Total accrued liabilities
|
$
|
35,270
|
|
|
$
|
33,072
|
|
|
2017
|
|
2016
|
||||
Acquisition-related contingent consideration
|
$
|
15,028
|
|
|
$
|
—
|
|
Workers compensation
|
8,492
|
|
|
9,534
|
|
||
Deferred compensation and accrued interest
|
4,968
|
|
|
4,655
|
|
||
Pension benefit liability
|
4,344
|
|
|
8,613
|
|
||
Gross tax contingency reserve
|
1,241
|
|
|
1,599
|
|
||
Postretirement benefit liability
|
968
|
|
|
939
|
|
||
Other
|
3,557
|
|
|
1,358
|
|
||
Total other noncurrent liabilities
|
$
|
38,598
|
|
|
$
|
26,698
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Currently payable:
|
|
|
|
|
|
||||||
Federal
|
$
|
51,524
|
|
|
$
|
57,116
|
|
|
$
|
47,601
|
|
State and local
|
6,319
|
|
|
6,502
|
|
|
5,229
|
|
|||
Total current provision
|
57,843
|
|
|
63,618
|
|
|
52,830
|
|
|||
Deferred federal, state and local provision (benefit)
|
2,359
|
|
|
(749
|
)
|
|
36
|
|
|||
Total taxes based on income
|
$
|
60,202
|
|
|
$
|
62,869
|
|
|
$
|
52,866
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Tax benefits recorded directly to common stock
|
$
|
1,123
|
|
|
$
|
1,417
|
|
|
$
|
563
|
|
|
2017
|
|
2016
|
||||
Deferred tax assets:
|
|
|
|
||||
Employee medical and other benefits
|
$
|
10,349
|
|
|
$
|
12,533
|
|
Receivable and other allowances
|
5,314
|
|
|
5,626
|
|
||
Inventories
|
1,041
|
|
|
1,034
|
|
||
Other accrued liabilities
|
1,905
|
|
|
1,740
|
|
||
Total deferred tax assets
|
18,609
|
|
|
20,933
|
|
||
Deferred tax liabilities:
|
|
|
|
||||
Property, plant and equipment
|
(22,188
|
)
|
|
(21,573
|
)
|
||
Intangible assets
|
(14,070
|
)
|
|
(14,555
|
)
|
||
Goodwill
|
(7,092
|
)
|
|
(6,117
|
)
|
||
Other
|
(466
|
)
|
|
(121
|
)
|
||
Total deferred tax liabilities
|
(43,816
|
)
|
|
(42,366
|
)
|
||
Net deferred tax liability
|
$
|
(25,207
|
)
|
|
$
|
(21,433
|
)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Net cash payments for income taxes
|
$
|
59,008
|
|
|
$
|
62,901
|
|
|
$
|
43,027
|
|
|
2017
|
|
2016
|
||||
Balance, beginning of year
|
$
|
1,599
|
|
|
$
|
1,487
|
|
Tax positions related to the current year:
|
|
|
|
||||
Additions
|
82
|
|
|
54
|
|
||
Reductions
|
—
|
|
|
—
|
|
||
Tax positions related to prior years:
|
|
|
|
||||
Additions
|
153
|
|
|
121
|
|
||
Reductions
|
(26
|
)
|
|
(63
|
)
|
||
Settlements
|
—
|
|
|
—
|
|
||
Balance, end of year
|
$
|
1,808
|
|
|
$
|
1,599
|
|
|
2017
|
|
2016
|
||||
Expense recognized for net tax-related interest and penalties
|
$
|
112
|
|
|
$
|
92
|
|
|
2017
|
|
2016
|
||||
Accrued interest and penalties included in the gross tax contingency reserve
|
$
|
683
|
|
|
$
|
571
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Specialty Foods
|
|
|
|
|
|
||||||
Non-frozen
|
$
|
817,700
|
|
|
$
|
818,716
|
|
|
$
|
741,726
|
|
Frozen
|
384,142
|
|
|
372,393
|
|
|
362,788
|
|
|||
Total
|
$
|
1,201,842
|
|
|
$
|
1,191,109
|
|
|
$
|
1,104,514
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Net Sales
(1) (2)
|
$
|
1,201,842
|
|
|
$
|
1,191,109
|
|
|
$
|
1,104,514
|
|
Operating Income
(2)
|
|
|
|
|
|
||||||
Specialty Foods
|
$
|
187,051
|
|
|
$
|
196,592
|
|
|
$
|
167,095
|
|
Corporate Expenses
|
(12,303
|
)
|
|
(12,022
|
)
|
|
(12,234
|
)
|
|||
Total
|
$
|
174,748
|
|
|
$
|
184,570
|
|
|
$
|
154,861
|
|
Identifiable Assets
(1) (3)
|
|
|
|
|
|
||||||
Specialty Foods
|
$
|
577,509
|
|
|
$
|
515,553
|
|
|
$
|
514,605
|
|
Corporate
|
138,896
|
|
|
119,179
|
|
|
187,551
|
|
|||
Total
|
$
|
716,405
|
|
|
$
|
634,732
|
|
|
$
|
702,156
|
|
Capital Expenditures
|
|
|
|
|
|
||||||
Specialty Foods
|
$
|
26,031
|
|
|
$
|
16,652
|
|
|
$
|
18,230
|
|
Corporate
|
974
|
|
|
19
|
|
|
68
|
|
|||
Total
|
$
|
27,005
|
|
|
$
|
16,671
|
|
|
$
|
18,298
|
|
Depreciation and Amortization
|
|
|
|
|
|
||||||
Specialty Foods
|
$
|
24,752
|
|
|
$
|
24,001
|
|
|
$
|
20,929
|
|
Corporate
|
154
|
|
|
146
|
|
|
182
|
|
|||
Total
|
$
|
24,906
|
|
|
$
|
24,147
|
|
|
$
|
21,111
|
|
(1)
|
Net sales and long-lived assets are predominately domestic.
|
(2)
|
All intercompany transactions have been eliminated.
|
(3)
|
Segment identifiable assets include those assets used in its operations and other intangible assets allocated to purchased businesses. Corporate assets consist principally of cash and equivalents. The increase in Specialty Foods assets from June 30, 2016 to June 30, 2017 was due to the acquisition of Angelic. The decline in Corporate assets from June 30, 2015 to June 30, 2016 was due to the decrease in cash resulting from the payment of the December 2015 special dividend.
|
|
2017
|
|
2016
|
|
2015
|
||||||
Net sales to Wal-Mart
|
$
|
201,484
|
|
|
$
|
189,417
|
|
|
$
|
177,354
|
|
As a percentage of consolidated net sales
|
17
|
%
|
|
16
|
%
|
|
16
|
%
|
|||
Net sales to McLane
|
$
|
198,153
|
|
|
$
|
232,241
|
|
|
$
|
202,218
|
|
As a percentage of consolidated net sales
|
16
|
%
|
|
19
|
%
|
|
18
|
%
|
|
2017
|
|
2016
|
||
Wal-Mart
|
26
|
%
|
|
25
|
%
|
McLane
|
12
|
%
|
|
17
|
%
|
|
2017
|
|
2016
|
|
2015
|
||||||
SSSARs granted
|
166
|
|
|
240
|
|
|
149
|
|
|||
Weighted average grant date fair value per right
|
$
|
17.59
|
|
|
$
|
12.23
|
|
|
$
|
9.94
|
|
Weighted average assumptions used in fair value calculations:
|
|
|
|
|
|
||||||
Risk-free interest rate
|
1.36
|
%
|
|
0.86
|
%
|
|
0.86
|
%
|
|||
Dividend yield
|
1.64
|
%
|
|
1.93
|
%
|
|
2.02
|
%
|
|||
Volatility factor of the expected market price of our common stock
|
22.41
|
%
|
|
20.88
|
%
|
|
19.62
|
%
|
|||
Expected life in years
|
2.47
|
|
|
2.69
|
|
|
2.71
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Compensation expense
|
$
|
1,882
|
|
|
$
|
1,472
|
|
|
$
|
1,288
|
|
Tax benefits
|
$
|
659
|
|
|
$
|
515
|
|
|
$
|
451
|
|
Intrinsic value of exercises
|
$
|
2,281
|
|
|
$
|
3,788
|
|
|
$
|
1,162
|
|
Excess tax benefits
|
$
|
798
|
|
|
$
|
1,341
|
|
|
$
|
410
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Fair value of vested rights
|
$
|
1,916
|
|
|
$
|
1,192
|
|
|
$
|
1,252
|
|
|
Number of
Rights
|
|
Weighted
Average
Exercise
Price
|
|
Weighted
Average
Remaining
Contractual
Life in
Years
|
|
Aggregate
Intrinsic
Value
|
|||||
Outstanding at beginning of year
|
435
|
|
|
$
|
97.01
|
|
|
|
|
|
||
Exercised
|
(74
|
)
|
|
$
|
89.52
|
|
|
|
|
|
||
Granted
|
166
|
|
|
$
|
134.06
|
|
|
|
|
|
||
Forfeited
|
(6
|
)
|
|
$
|
110.77
|
|
|
|
|
|
||
Outstanding at end of year
|
521
|
|
|
$
|
109.70
|
|
|
3.62
|
|
$
|
8,603
|
|
Exercisable and vested at end of year
|
155
|
|
|
$
|
95.25
|
|
|
2.73
|
|
$
|
4,229
|
|
Vested and expected to vest at end of year
|
493
|
|
|
$
|
109.81
|
|
|
3.61
|
|
$
|
8,119
|
|
|
|
Outstanding
|
|
Exercisable
|
||||||||
|
|
|
|
|
|
Weighted Average
|
|
|
|
|
||
Grant Years
|
|
Range of
Exercise Prices
|
|
Number
Outstanding
|
|
Remaining
Contractual
Life in
Years
|
|
Exercise
Price
|
|
Number
Exercisable
|
|
Weighted
Average
Exercise
Price
|
2017
|
|
$121.54-$138.96
|
|
164
|
|
4.67
|
|
$134.04
|
|
—
|
|
$—
|
2016
|
|
$101.70-$112.62
|
|
217
|
|
3.69
|
|
$104.10
|
|
60
|
|
$104.59
|
2015
|
|
$91.13
|
|
94
|
|
2.65
|
|
$91.13
|
|
49
|
|
$91.13
|
2014
|
|
$79.78-$89.29
|
|
41
|
|
1.64
|
|
$89.01
|
|
41
|
|
$89.01
|
2013
|
|
$72.67
|
|
5
|
|
0.66
|
|
$72.67
|
|
5
|
|
$72.67
|
|
2017
|
|
2016
|
|
2015
|
||||||
Employees
|
|
|
|
|
|
||||||
Restricted stock granted
|
12
|
|
|
28
|
|
|
9
|
|
|||
Grant date fair value
|
$
|
1,591
|
|
|
$
|
2,923
|
|
|
$
|
845
|
|
Weighted average grant date fair value per award
|
$
|
134.07
|
|
|
$
|
102.89
|
|
|
$
|
91.13
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Nonemployee directors
|
|
|
|
|
|
||||||
Restricted stock granted
|
5
|
|
|
6
|
|
|
7
|
|
|||
Grant date fair value
|
$
|
759
|
|
|
$
|
639
|
|
|
$
|
639
|
|
Weighted average grant date fair value per award
|
$
|
138.96
|
|
|
$
|
112.05
|
|
|
$
|
92.92
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Compensation expense
|
$
|
2,366
|
|
|
$
|
1,854
|
|
|
$
|
1,752
|
|
Tax benefits
|
$
|
828
|
|
|
$
|
649
|
|
|
$
|
613
|
|
Excess tax benefits
|
$
|
325
|
|
|
$
|
76
|
|
|
$
|
153
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Fair value of vested shares
|
$
|
2,420
|
|
|
$
|
1,124
|
|
|
$
|
1,836
|
|
|
Number of
Shares
|
|
Weighted
Average Grant
Date Fair Value
|
|||
Unvested restricted stock at beginning of year
|
63
|
|
|
$
|
97.71
|
|
Granted
|
17
|
|
|
$
|
135.61
|
|
Vested
|
(26
|
)
|
|
$
|
94.32
|
|
Forfeited
|
(2
|
)
|
|
$
|
99.18
|
|
Unvested restricted stock at end of year
|
52
|
|
|
$
|
111.87
|
|
|
2017
|
|
2016
|
||
Weighted-average assumption as of June 30
|
|
|
|
||
Discount rate
|
3.68
|
%
|
|
3.39
|
%
|
|
2017
|
|
2016
|
|
2015
|
|||
Discount rate
|
3.39
|
%
|
|
4.12
|
%
|
|
4.02
|
%
|
Expected long-term return on plan assets
|
7.00
|
%
|
|
7.00
|
%
|
|
7.00
|
%
|
|
Target Percentage
of Plan Assets at
June 30
|
|
Actual Percentage of Plan Assets
|
||||
|
2017
|
|
2017
|
|
2016
|
||
Cash and equivalents
|
0%-10%
|
|
3
|
%
|
|
2
|
%
|
Equity securities
|
30%-70%
|
|
49
|
|
|
50
|
|
Fixed income
|
30%-70%
|
|
48
|
|
|
48
|
|
Total
|
|
|
100
|
%
|
|
100
|
%
|
|
June 30, 2017
|
||||||||||||||
Asset Category
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Cash and equivalents
|
$
|
472
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
472
|
|
Money market funds
|
599
|
|
|
—
|
|
|
—
|
|
|
599
|
|
||||
U.S. government obligations
|
—
|
|
|
3,598
|
|
|
—
|
|
|
3,598
|
|
||||
Municipal obligations
|
—
|
|
|
36
|
|
|
—
|
|
|
36
|
|
||||
Corporate obligations
|
—
|
|
|
3,805
|
|
|
—
|
|
|
3,805
|
|
||||
Mortgage obligations
|
—
|
|
|
2,199
|
|
|
—
|
|
|
2,199
|
|
||||
Mutual funds fixed income
|
8,109
|
|
|
—
|
|
|
—
|
|
|
8,109
|
|
||||
Mutual funds equity
|
17,951
|
|
|
—
|
|
|
—
|
|
|
17,951
|
|
||||
Total
|
$
|
27,131
|
|
|
$
|
9,638
|
|
|
$
|
—
|
|
|
$
|
36,769
|
|
|
|
|
|
|
|
|
|
||||||||
|
June 30, 2016
|
||||||||||||||
Asset Category
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Cash and equivalents
|
$
|
557
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
557
|
|
Money market funds
|
267
|
|
|
—
|
|
|
—
|
|
|
267
|
|
||||
U.S. government obligations
|
—
|
|
|
4,785
|
|
|
—
|
|
|
4,785
|
|
||||
Municipal obligations
|
—
|
|
|
139
|
|
|
—
|
|
|
139
|
|
||||
Corporate obligations
|
—
|
|
|
2,927
|
|
|
—
|
|
|
2,927
|
|
||||
Mortgage obligations
|
—
|
|
|
1,998
|
|
|
—
|
|
|
1,998
|
|
||||
Mutual funds fixed income
|
7,135
|
|
|
—
|
|
|
—
|
|
|
7,135
|
|
||||
Mutual funds equity
|
17,874
|
|
|
—
|
|
|
—
|
|
|
17,874
|
|
||||
Total
|
$
|
25,833
|
|
|
$
|
9,849
|
|
|
$
|
—
|
|
|
$
|
35,682
|
|
|
2017
|
|
2016
|
||||
Change in benefit obligation
|
|
|
|
||||
Benefit obligation at beginning of year
|
$
|
44,152
|
|
|
$
|
42,042
|
|
Interest cost
|
1,457
|
|
|
1,685
|
|
||
Actuarial (gain) loss
|
(2,297
|
)
|
|
2,683
|
|
||
Benefits paid
|
(2,371
|
)
|
|
(2,258
|
)
|
||
Benefit obligation at end of year
|
$
|
40,941
|
|
|
$
|
44,152
|
|
|
2017
|
|
2016
|
||||
Change in plan assets
|
|
|
|
||||
Fair value of plan assets at beginning of year
|
$
|
35,682
|
|
|
$
|
37,146
|
|
Actual return on plan assets
|
3,458
|
|
|
794
|
|
||
Employer contributions
|
—
|
|
|
—
|
|
||
Benefits paid
|
(2,371
|
)
|
|
(2,258
|
)
|
||
Fair value of plan assets at end of year
|
$
|
36,769
|
|
|
$
|
35,682
|
|
|
2017
|
|
2016
|
||||
Reconciliation of funded status
|
|
|
|
||||
Net accrued benefit cost
|
$
|
(4,172
|
)
|
|
$
|
(8,470
|
)
|
|
2017
|
|
2016
|
||||
Amounts recognized in the Consolidated Balance Sheets consist of
|
|
|
|
||||
Prepaid benefit cost (Other Noncurrent Assets)
|
$
|
172
|
|
|
$
|
143
|
|
Accrued benefit liability (Other Noncurrent Liabilities)
|
(4,344
|
)
|
|
(8,613
|
)
|
||
Net amount recognized
|
$
|
(4,172
|
)
|
|
$
|
(8,470
|
)
|
|
2017
|
|
2016
|
||||
Accumulated benefit obligation
|
$
|
40,941
|
|
|
$
|
44,152
|
|
|
2017
|
|
2016
|
||||
Benefit obligations
|
$
|
38,236
|
|
|
$
|
41,301
|
|
Fair value of plan assets at end of year
|
$
|
33,892
|
|
|
$
|
32,688
|
|
|
2017
|
|
2016
|
||||
Net actuarial loss
|
$
|
16,380
|
|
|
$
|
20,434
|
|
Income taxes
|
(6,052
|
)
|
|
(7,550
|
)
|
||
Total
|
$
|
10,328
|
|
|
$
|
12,884
|
|
|
2018
|
||
Net actuarial loss
|
$
|
572
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Components of net periodic benefit income
|
|
|
|
|
|
||||||
Interest cost
|
$
|
1,457
|
|
|
$
|
1,685
|
|
|
$
|
1,612
|
|
Expected return on plan assets
|
(2,416
|
)
|
|
(2,520
|
)
|
|
(2,632
|
)
|
|||
Amortization of unrecognized net loss
|
715
|
|
|
539
|
|
|
429
|
|
|||
Net periodic benefit income
|
$
|
(244
|
)
|
|
$
|
(296
|
)
|
|
$
|
(591
|
)
|
|
|
||
2018
|
$
|
2,348
|
|
2019
|
$
|
2,348
|
|
2020
|
$
|
2,376
|
|
2021
|
$
|
2,399
|
|
2022
|
$
|
2,441
|
|
2023 - 2027
|
$
|
12,394
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Costs related to company-sponsored defined contribution plans
|
$
|
1,111
|
|
|
$
|
992
|
|
|
$
|
888
|
|
|
|
|
|
Pension Protection
Act Zone Status
|
|
|
|
Fiscal Year
Contributions
(1) (3)
|
|
|
|
|
||||||||||||
Plan Name
|
|
EIN/PN
|
|
2016
|
|
2015
|
|
FIP/RP Status
Pending /
Implemented
|
|
2017
|
|
2016
|
|
2015
|
|
Surcharge
Imposed
|
|
Expiration
Date of
Collective
Bargaining
Agreement
|
||||||
Cleveland Bakers and Teamsters Pension Fund
(2)
|
|
34-0904419-001
|
|
Red
12/31/15 |
|
Red
12/31/14 |
|
Yes,
Implemented |
|
$
|
2,098
|
|
|
$
|
1,605
|
|
|
$
|
1,501
|
|
|
No
|
|
n/a
|
Western Conference of Teamsters Pension Plan
|
|
91-6145047-001
|
|
Green
12/31/15 |
|
Green
12/31/14 |
|
No
|
|
409
|
|
|
420
|
|
|
440
|
|
|
No
|
|
12/15/2018
|
|||
Total contributions to multiemployer plans
|
|
|
|
|
|
|
|
|
|
$
|
2,507
|
|
|
$
|
2,025
|
|
|
$
|
1,941
|
|
|
|
|
|
(1)
|
Contributions do not include payments related to multiemployer pension withdrawals/settlements.
|
(2)
|
In January 2017 the employees at our Bedford Heights, Ohio plant voted to ratify a new collective bargaining agreement. Among other terms, the new agreement provided for our complete withdrawal from the underfunded multiemployer Cleveland Bakers and Teamsters Pension Fund. As settlement of our portion of underfunded pension benefits of the multiemployer plan, we paid
$17.0 million
in 2017 for a full withdrawal from the plan.
|
(3)
|
Our 2017 contributions to the Cleveland Bakers and Teamsters Pension Fund included amounts related to a new collective bargaining contract.
|
|
2017
|
|
2016
|
|
2015
|
||||||
Multiemployer health and welfare plan contributions
|
$
|
3,570
|
|
|
$
|
3,559
|
|
|
$
|
3,796
|
|
|
2017
|
|
2016
|
||||
Liability for deferred compensation and accrued interest
|
$
|
4,968
|
|
|
$
|
4,655
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Deferred compensation expense
|
$
|
170
|
|
|
$
|
151
|
|
|
$
|
136
|
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Fiscal Year
|
||||||||||
2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Sales
|
$
|
291,361
|
|
|
$
|
326,773
|
|
|
$
|
293,834
|
|
|
$
|
289,874
|
|
|
$
|
1,201,842
|
|
Gross Profit
|
$
|
80,634
|
|
|
$
|
93,739
|
|
|
$
|
71,905
|
|
|
$
|
72,486
|
|
|
$
|
318,764
|
|
Net Income
(1)
|
$
|
33,400
|
|
|
$
|
38,956
|
|
|
$
|
14,471
|
|
|
$
|
28,487
|
|
|
$
|
115,314
|
|
Diluted Net Income Per Common Share
(1) (2)
|
$
|
1.22
|
|
|
$
|
1.42
|
|
|
$
|
0.53
|
|
|
$
|
1.04
|
|
|
$
|
4.20
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Fiscal Year
|
||||||||||
2016
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Sales
|
$
|
294,085
|
|
|
$
|
324,769
|
|
|
$
|
287,765
|
|
|
$
|
284,490
|
|
|
$
|
1,191,109
|
|
Gross Profit
|
$
|
67,967
|
|
|
$
|
83,594
|
|
|
$
|
72,924
|
|
|
$
|
75,144
|
|
|
$
|
299,629
|
|
Net Income
|
$
|
27,628
|
|
|
$
|
34,511
|
|
|
$
|
29,011
|
|
|
$
|
30,614
|
|
|
$
|
121,764
|
|
Diluted Net Income Per Common Share
(2)
|
$
|
1.01
|
|
|
$
|
1.25
|
|
|
$
|
1.06
|
|
|
$
|
1.12
|
|
|
$
|
4.44
|
|
(1)
|
Included in the third quarter and fiscal year net income is expense of
$11.5 million
, net of taxes, or approximately
$0.42
per diluted share, related to a multiemployer pension settlement and other benefit-related costs.
|
(2)
|
Diluted net income per common share amounts are calculated independently for each of the quarters presented. Accordingly, the sum of the quarterly net income per common share amounts may not agree with the fiscal year.
|
1.
|
Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets;
|
2.
|
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of management and our directors; and
|
3.
|
Provide reasonable assurance regarding prevention or timely detection of an unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.
|
/s/ Deloitte & Touche LLP
|
Deloitte & Touche LLP
|
LANCASTER COLONY CORPORATION
|
|
(Registrant)
|
|
|
|
By:
|
/s/ DAVID A. CIESINSKI
|
|
David A. Ciesinski
|
|
President, Chief Executive Officer
|
|
and Director
|
|
|
Date:
|
August 24, 2017
|
|
|
|
|
|
Signatures
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ DAVID A. CIESINSKI
|
|
President, Chief Executive Officer
|
|
August 24, 2017
|
David A. Ciesinski
|
|
and Director
|
|
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
/s/ JOHN B. GERLACH, JR.
|
|
Executive Chairman of the Board
|
|
August 24, 2017
|
John B. Gerlach, Jr.
|
|
and Director
|
|
|
|
|
|
|
|
/s/ DOUGLAS A. FELL
|
|
Treasurer, Vice President,
|
|
August 24, 2017
|
Douglas A. Fell
|
|
Assistant Secretary
|
|
|
|
|
and Chief Financial Officer
|
|
|
|
|
(Principal Financial and Accounting Officer)
|
|
|
|
|
|
|
|
/s/ JAMES B. BACHMANN
|
|
Director
|
|
August 15, 2017
|
James B. Bachmann
|
|
|
|
|
|
|
|
|
|
/s/ NEELI BENDAPUDI
|
|
Director
|
|
August 15, 2017
|
Neeli Bendapudi
|
|
|
|
|
|
|
|
|
|
/s/ WILLIAM H. CARTER
|
|
Director
|
|
August 15, 2017
|
William H. Carter
|
|
|
|
|
|
|
|
|
|
/s/ KENNETH L. COOKE
|
|
Director
|
|
August 15, 2017
|
Kenneth L. Cooke
|
|
|
|
|
|
|
|
|
|
/s/ ROBERT L. FOX
|
|
Director
|
|
August 15, 2017
|
Robert L. Fox
|
|
|
|
|
|
|
|
|
|
/s/ ALAN F. HARRIS
|
|
Director
|
|
August 15, 2017
|
Alan F. Harris
|
|
|
|
|
|
|
|
|
|
/s/ ROBERT P. OSTRYNIEC
|
|
Director
|
|
August 15, 2017
|
Robert P. Ostryniec
|
|
|
|
|
|
|
|
|
|
/s/ ZUHEIR SOFIA
|
|
Director
|
|
August 15, 2017
|
Zuheir Sofia
|
|
|
|
|
Exhibit
Number
|
|
Description
|
|
|
|
10.11
(a)
|
|
|
|
|
|
10.12
(a)
|
|
|
|
|
|
10.13
(a)
|
|
|
|
|
|
21
*
|
|
|
|
|
|
23
*
|
|
|
|
|
|
31.1
*
|
|
|
|
|
|
31.2
*
|
|
|
|
|
|
32
**
|
|
|
|
|
|
101.INS*
|
|
XBRL Instance Document
|
|
|
|
101.SCH*
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
101.CAL*
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
101.DEF*
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
101.LAB*
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
101.PRE*
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
|
|
(a)
|
|
Indicates a management contract or compensatory plan, contract or arrangement in which any Director or any Executive Officer participates.
|
|
|
|
*
|
|
Filed herewith
|
|
|
|
**
|
|
Furnished herewith
|
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