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Form 8-K J M SMUCKER Co For: Jul 25

July 25, 2016 4:53 PM EDT


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 _________________________
FORM 8-K
 
 ______________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 25, 2016
 _________________________
The J. M. Smucker Company
(Exact Name of Registrant as Specified in Charter)

 _________________________

 
Ohio
 
001-05111
 
34-0538550
(State or Other Jurisdiction
 
(Commission
 
(IRS Employer
of Incorporation)
 
File Number)
 
Identification No.)
One Strawberry Lane
 
 
Orrville, Ohio
 
44667-0280
(Address of Principal Executive Offices)
 
(Zip Code)
Registrant’s telephone number, including area code: (330) 682-3000
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
  _________________________
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):
 
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))






Item 7.01 Regulation FD Disclosure.
Beginning May 1, 2016, The J. M. Smucker Company ("we" or "our") modified our segment profit calculation and redefined certain non-GAAP measures to exclude amortization expense related to intangible assets, including any related impairment charges. Management believes that excluding amortization expense related to intangible assets, including any related impairment charges, from segment operating results and certain non-GAAP measures is more reflective of our operating performance and the way in which we manage our business.
Attached as Exhibits 99.1 and 99.2 to this Current Report on Form 8-K are the unaudited segment profit reconciliations for the quarterly periods in fiscal 2016 and 2015 and the unaudited non-GAAP measures reconciliations for the quarterly periods in fiscal 2016 and 2015 and the annual periods for fiscal 2014, 2013, and 2012, modified to exclude amortization expense related to intangible assets, including any related impairment charges.
The information in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference into any filing under the Exchange Act or the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.

2



Item 9.01
Financial Statements and Exhibits.
(d) Exhibits 
Exhibit
Number
  
Exhibit Description
 
 
99.1

  
Unaudited Reportable Segments Supplemental Information
 
 
99.2

  
Unaudited Non-GAAP Measures Supplemental Information

3



SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. 
THE J. M. SMUCKER COMPANY
 
 
By:
 
/s/ Mark R. Belgya
Name:
 
Mark R. Belgya
Title:
 
Vice Chair and Chief Financial Officer
Date: July 25, 2016

4



INDEX OF EXHIBITS
 
Exhibit
Number
  
Exhibit Description
 
 
99.1

  
Unaudited Reportable Segments Supplemental Information
 
 
99.2

  
Unaudited Non-GAAP Measures Supplemental Information


5


Exhibit 99.1

The J. M. Smucker Company
Unaudited Reportable Segments Supplemental Information
(Revised to Reflect the New Segment Profit Definition)

 
Three Months Ended
July 31,

 
2015
 
2014
 
(Dollars in millions)
Segment profit:
 
 
 
U.S. Retail Coffee
$
173.8

 
$
155.8

U.S. Retail Consumer Foods
119.4

 
119.5

U.S. Retail Pet Foods
116.8

 

International and Foodservice
36.1

 
35.8

Total segment profit
$
446.1

 
$
311.1

Amortization
(53.0
)
 
(24.9
)
Interest expense – net
(44.4
)
 
(17.4
)
Unallocated derivative losses
(10.0
)
 
(21.4
)
Cost of products sold – special project costs (A)
(3.1
)
 
(0.4
)
Other special project costs (A)
(22.9
)
 
(8.6
)
Corporate administrative expenses
(90.0
)
 
(64.2
)
Other income – net
0.1

 
1.3

Income before income taxes
$
222.8

 
$
175.5


 
Three Months Ended
October 31,
 
Six Months Ended
October 31,
 
2015
 
2014
 
2015
 
2014
 
(Dollars in millions)
Segment profit:
 
 
 
 
 
 
 
U.S. Retail Coffee
$
180.4

 
$
169.4

 
$
354.2

 
$
325.2

U.S. Retail Consumer Foods
127.3

 
127.3

 
246.7

 
246.8

U.S. Retail Pet Foods
115.0

 

 
231.8

 

International and Foodservice
55.6

 
42.9

 
91.7

 
78.7

Total segment profit
$
478.3

 
$
339.6

 
$
924.4

 
$
650.7

Amortization
(53.0
)
 
(25.2
)
 
(106.0
)
 
(50.1
)
Interest expense – net
(42.6
)
 
(16.2
)
 
(87.0
)
 
(33.6
)
Unallocated derivative gains (losses)
6.0

 
7.6

 
(4.0
)
 
(13.8
)
Cost of products sold – special project costs (A)
(3.0
)
 
(0.3
)
 
(6.1
)
 
(0.7
)
Other special project costs (A)
(30.6
)
 
(2.8
)
 
(53.5
)
 
(11.4
)
Corporate administrative expenses
(83.9
)
 
(64.1
)
 
(173.9
)
 
(128.3
)
Other (expense) income – net
(1.6
)
 
0.3

 
(1.5
)
 
1.6

Income before income taxes
$
269.6

 
$
238.9

 
$
492.4

 
$
414.4

(A) Special project costs includes merger and integration and restructuring costs.





The J. M. Smucker Company
Unaudited Reportable Segments Supplemental Information
(Revised to Reflect the New Segment Profit Definition)

 
Three Months Ended
January 31,
 
Nine Months Ended
January 31,
 
2016
 
2015
 
2016
 
2015
 
(Dollars in millions)
Segment profit:
 
 
 
 
 
 
 
U.S. Retail Coffee
$
194.6

 
$
168.7

 
$
548.8

 
$
493.9

U.S. Retail Consumer Foods
129.1

 
122.4

 
375.8

 
369.2

U.S. Retail Pet Foods
124.0

 

 
355.8

 

International and Foodservice
48.9

 
47.0

 
140.6

 
125.7

Total segment profit
$
496.6

 
$
338.1

 
$
1,421.0

 
$
988.8

Amortization
(52.2
)
 
(25.2
)
 
(158.2
)
 
(75.3
)
Interest expense – net
(43.6
)
 
(16.8
)
 
(130.6
)
 
(50.4
)
Unallocated derivative gains (losses)
6.7

 
13.4

 
2.7

 
(0.4
)
Cost of products sold – special project costs (A)
(3.1
)
 
(0.4
)
 
(9.2
)
 
(1.1
)
Other special project costs (A)
(41.4
)
 
(5.9
)
 
(94.9
)
 
(17.3
)
Corporate administrative expenses
(88.3
)
 
(64.9
)
 
(262.2
)
 
(193.2
)
Other income (expense) – net
0.6

 
0.1

 
(0.9
)
 
1.7

Income before income taxes
$
275.3

 
$
238.4

 
$
767.7

 
$
652.8


 
Three Months Ended
April 30,
 
Year Ended
April 30,
 
2016
 
2015
 
2016
 
2015
 
(Dollars in millions)
Segment profit (loss):
 
 
 
 
 
 
 
U.S. Retail Coffee
$
173.8

 
$
129.3

 
$
722.6

 
$
623.2

U.S. Retail Consumer Foods
91.7

 
96.8

 
467.5

 
466.0

U.S. Retail Pet Foods
138.1

 
(6.4
)
 
493.9

 
(6.4
)
International and Foodservice
38.4

 
35.9

 
179.0

 
161.6

Total segment profit
$
442.0

 
$
255.6

 
$
1,863.0

 
$
1,244.4

Amortization
(50.2
)
 
(35.6
)
 
(208.4
)
 
(110.9
)
Interest expense – net
(40.5
)
 
(29.5
)
 
(171.1
)
 
(79.9
)
Other debt costs

 
(173.3
)
 

 
(173.3
)
Unallocated derivative gains (losses)
9.3

 
(24.1
)
 
12.0

 
(24.5
)
Cost of products sold – special project costs (A)
(3.0
)
 
(5.1
)
 
(12.2
)
 
(6.2
)
Other special project costs (A)
(41.0
)
 
(39.3
)
 
(135.9
)
 
(56.6
)
Corporate administrative expenses
(111.0
)
 
(81.0
)
 
(373.2
)
 
(274.2
)
Other income – net
4.6

 
2.5

 
3.7

 
4.2

Income (loss) before income taxes
$
210.2

 
$
(129.8
)
 
$
977.9

 
$
523.0

(A) Special project costs includes merger and integration and restructuring costs.






Exhibit 99.2

The J. M. Smucker Company
Unaudited Non-GAAP Measures Supplemental Information
(Revised to Reflect the New Non-GAAP Measures Definition)

 
Three Months Ended
July 31,
 
2015
 
2014
 
(Dollars in millions)
Operating income reconciliation:
 
 
 
Operating income
$
267.1

 
$
191.6

Amortization
53.0

 
24.9

Unallocated derivative losses
10.0

 
21.4

Cost of products sold – special project costs (A)
3.1

 
0.4

Other special project costs (A)
22.9

 
8.6

Adjusted operating income
$
356.1

 
$
246.9

Net income reconciliation:
 
 
 
Net income
$
136.4

 
$
116.0

Income taxes
86.4

 
59.5

Amortization
53.0

 
24.9

Unallocated derivative losses
10.0

 
21.4

Cost of products sold – special project costs (A)
3.1

 
0.4

Other special project costs (A)
22.9

 
8.6

Adjusted income before income taxes
$
311.8

 
$
230.8

Income taxes, as adjusted (B)
120.9

 
78.2

Adjusted income
$
190.9

 
$
152.6

Weighted-average shares – assuming dilution
119,634,958

 
101,776,940

Adjusted earnings per share
$
1.60

 
$
1.50

(A) Special project costs includes merger and integration and restructuring costs.
(B) Income taxes, as adjusted is based upon our GAAP effective tax rate and reflects the impact of items excluded from GAAP net income to derive adjusted income.






The J. M. Smucker Company
Unaudited Non-GAAP Measures Supplemental Information
(Revised to Reflect the New Non-GAAP Measures Definition)

 
Three Months Ended
October 31,
 
Six Months Ended
October 31,
 
2015
 
2014
 
2015
 
2014
 
(Dollars in millions)
Operating income reconciliation:
 
 
 
 
 
 
 
Operating income
$
313.8

 
$
254.8

 
$
580.9

 
$
446.4

Amortization
53.0

 
25.2

 
106.0

 
50.1

Unallocated derivative (gains) losses
(6.0
)
 
(7.6
)
 
4.0

 
13.8

Cost of products sold – special project costs (A)
3.0

 
0.3

 
6.1

 
0.7

Other special project costs (A)
30.6

 
2.8

 
53.5

 
11.4

Adjusted operating income
$
394.4

 
$
275.5

 
$
750.5

 
$
522.4

Net income reconciliation:
 
 
 
 
 
 
 
Net income
$
176.0

 
$
158.3

 
$
312.4

 
$
274.3

Income taxes
93.6

 
80.6

 
180.0

 
140.1

Amortization
53.0

 
25.2

 
106.0

 
50.1

Unallocated derivative (gains) losses
(6.0
)
 
(7.6
)
 
4.0

 
13.8

Cost of products sold – special project costs (A)
3.0

 
0.3

 
6.1

 
0.7

Other special project costs (A)
30.6

 
2.8

 
53.5

 
11.4

Adjusted income before income taxes
$
350.2

 
$
259.6

 
$
662.0

 
$
490.4

Income taxes, as adjusted (B)
121.1

 
87.6

 
242.0

 
165.8

Adjusted income
$
229.1

 
$
172.0

 
$
420.0

 
$
324.6

Weighted-average shares – assuming dilution
119,680,574

 
101,824,624

 
119,657,766

 
101,800,782

Adjusted earnings per share
$
1.91

 
$
1.69

 
$
3.51

 
$
3.19

(A) Special project costs includes merger and integration and restructuring costs.
(B) Income taxes, as adjusted is based upon our GAAP effective tax rate and reflects the impact of items excluded from GAAP net income to derive adjusted income.






The J. M. Smucker Company
Unaudited Non-GAAP Measures Supplemental Information
(Revised to Reflect the New Non-GAAP Measures Definition)

 
Three Months Ended
January 31,
 
Nine Months Ended
January 31,
 
2016
 
2015
 
2016
 
2015
 
(Dollars in millions)
Operating income reconciliation:
 
 
 
 
 
 
 
Operating income
$
318.3

 
$
255.1

 
$
899.2

 
$
701.5

Amortization
52.2

 
25.2

 
158.2

 
75.3

Unallocated derivative (gains) losses
(6.7
)
 
(13.4
)
 
(2.7
)
 
0.4

Cost of products sold – special project costs (A)
3.1

 
0.4

 
9.2

 
1.1

Other special project costs (A)
41.4

 
5.9

 
94.9

 
17.3

Adjusted operating income
$
408.3

 
$
273.2

 
$
1,158.8

 
$
795.6

Net income reconciliation:
 
 
 
 
 
 
 
Net income
$
185.3

 
$
160.9

 
$
497.7

 
$
435.2

Income taxes
90.0

 
77.5

 
270.0

 
217.6

Amortization
52.2

 
25.2

 
158.2

 
75.3

Unallocated derivative (gains) losses
(6.7
)
 
(13.4
)
 
(2.7
)
 
0.4

Cost of products sold – special project costs (A)
3.1

 
0.4

 
9.2

 
1.1

Other special project costs (A)
41.4

 
5.9

 
94.9

 
17.3

Adjusted income before income taxes
$
365.3

 
$
256.5

 
$
1,027.3

 
$
746.9

Income taxes, as adjusted (B)
119.3

 
83.2

 
361.3

 
249.0

Adjusted income
$
246.0

 
$
173.3

 
$
666.0

 
$
497.9

Weighted-average shares – assuming dilution
119,734,947

 
101,801,500

 
119,683,493

 
101,801,023

Adjusted earnings per share
$
2.05

 
$
1.70

 
$
5.56

 
$
4.89

(A) Special project costs includes merger and integration and restructuring costs.
(B) Income taxes, as adjusted is based upon our GAAP effective tax rate and reflects the impact of items excluded from GAAP net income to derive adjusted income.







The J. M. Smucker Company
Unaudited Non-GAAP Measures Supplemental Information
(Revised to Reflect the New Non-GAAP Measures Definition)

 
Three Months Ended
April 30,
 
Year Ended
April 30,
 
2016
 
2015
 
2016
 
2015
 
(Dollars in millions)
Operating income reconciliation:
 
 
 
 
 
 
 
Operating income
$
246.1

 
$
70.5

 
$
1,145.3

 
$
772.0

Amortization
50.2

 
35.6

 
208.4

 
110.9

Unallocated derivative (gains) losses
(9.3
)
 
24.1

 
(12.0
)
 
24.5

Cost of products sold – special project costs (A)
3.0

 
5.1

 
12.2

 
6.2

Other special project costs (A)
41.0

 
39.3

 
135.9

 
56.6

Adjusted operating income
$
331.0

 
$
174.6

 
$
1,489.8

 
$
970.2

Net income (loss) reconciliation:
 
 
 
 
 
 
 
Net income (loss)
$
191.0

 
$
(90.3
)
 
$
688.7

 
$
344.9

Income tax expense (benefit)
19.2

 
(39.5
)
 
289.2

 
178.1

Amortization
50.2

 
35.6

 
208.4

 
110.9

Unallocated derivative (gains) losses
(9.3
)
 
24.1

 
(12.0
)
 
24.5

Cost of products sold – special project costs (A)
3.0

 
5.1

 
12.2

 
6.2

Other special project costs (A)
41.0

 
39.3

 
135.9

 
56.6

Adjusted income (loss) before income taxes
$
295.1

 
$
(25.7
)
 
$
1,322.4

 
$
721.2

Income tax expense (benefit), as adjusted (B)
29.8

 
(3.4
)
 
391.1

 
245.6

Adjusted income (loss)
$
265.3

 
$
(22.3
)
 
$
931.3

 
$
475.6

Weighted-average shares – assuming dilution
118,845,157

 
109,577,740

 
119,477,312

 
103,697,261

Adjusted earnings per share
$
2.23

 
$
(0.20
)
 
$
7.79

 
$
4.59

(A) Special project costs includes merger and integration and restructuring costs.
(B) Income tax expense (benefit), as adjusted is based upon our GAAP effective tax rate and reflects the impact of items excluded from GAAP net income (loss) to derive adjusted income (loss).






The J. M. Smucker Company
Unaudited Non-GAAP Measures Supplemental Information
(Revised to Reflect the New Non-GAAP Measures Definition)

 
Year Ended April 30,
 
2014
 
2013
 
2012
 
(Dollars in millions)
Operating income reconciliation:
 
 
 
 
 
Operating income
$
919.0

 
$
910.4

 
$
778.3

Amortization
98.9

 
96.8

 
92.7

Unallocated derivative (gains) losses
(5.3
)
 
(6.6
)
 
8.5

Cost of products sold – special project costs (A)
9.4

 
11.5

 
43.2

Other special project costs (A)
25.6

 
49.5

 
72.5

Adjusted operating income
$
1,047.6

 
$
1,061.6

 
$
995.2

Net income reconciliation:
 
 
 
 
 
Net income
$
565.2

 
$
544.2

 
$
459.7

Income taxes
284.5

 
273.1

 
241.5

Amortization
98.9

 
96.8

 
92.7

Unallocated derivative (gains) losses
(5.3
)
 
(6.6
)
 
8.5

Cost of products sold – special project costs (A)
9.4

 
11.5

 
43.2

Other special project costs (A)
25.6

 
49.5

 
72.5

Adjusted income before income taxes
$
978.3

 
$
968.5

 
$
918.1

Income taxes, as adjusted (B)
327.5

 
323.6

 
316.1

Adjusted income
$
650.8

 
$
644.9

 
$
602.0

Weighted-average shares – assuming dilution
104,346,587

 
108,851,153

 
113,313,567

Adjusted earnings per share
$
6.24

 
$
5.92

 
$
5.31

(A) Special project costs includes merger and integration and restructuring costs.
(B) Income taxes, as adjusted is based upon our GAAP effective tax rate and reflects the impact of items excluded from GAAP net income to derive adjusted income.






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