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