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þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
GEORGIA | 58-2582379 | |
(State or other jurisdiction | (I.R.S. Employer Identification | |
of incorporation or organization) | Number) |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o | |||
(Do not check if a smaller reporting company)
|
TITLE OF EACH CLASS | OUTSTANDING AT AUGUST 18, 2010 | |
Common Stock, $.01 par value with | 91,915,139 | |
Preferred Share Purchase Rights |
PAGE | ||||||||
NUMBER | ||||||||
PART I. Financial Information
|
||||||||
4 | ||||||||
5 | ||||||||
6 | ||||||||
7 | ||||||||
8 | ||||||||
23 | ||||||||
33 | ||||||||
34 | ||||||||
34 | ||||||||
34 | ||||||||
34 | ||||||||
35 | ||||||||
Exhibit index
|
||||||||
EX-31.1 | ||||||||
EX-31.2 | ||||||||
EX-31.3 | ||||||||
EX-32 | ||||||||
EX-101 INSTANCE DOCUMENT | ||||||||
EX-101 SCHEMA DOCUMENT | ||||||||
EX-101 CALCULATION LINKBASE DOCUMENT | ||||||||
EX-101 LABELS LINKBASE DOCUMENT | ||||||||
EX-101 PRESENTATION LINKBASE DOCUMENT | ||||||||
EX-101 DEFINITION LINKBASE DOCUMENT |
2
• | unexpected changes in any of the following: (i) general economic and business conditions; (ii) the competitive setting in which we operate, including, advertising or promotional strategies by us or our competitors, as well as changes in consumer demand; (iii) interest rates and other terms available to us on our borrowings; (iv) energy and raw materials costs and availability and hedging counter-party risks; (v) relationships with our employees, independent distributors and third party service providers; and (vi) laws and regulations (including environmental and health-related issues), accounting standards or tax rates in the markets in which we operate; |
• | the loss or financial instability of any significant customer(s); |
• | our ability to execute our business strategy, which may involve integration of recent acquisitions or the acquisition or disposition of assets at presently targeted values; |
• | our ability to operate existing, and any new, manufacturing lines according to schedule; |
• | the level of success we achieve in developing and introducing new products and entering new markets; |
• | changes in consumer behavior, trends and preferences, including health and whole grain trends, and the movement toward more inexpensive store-branded products; |
• | our ability to implement new technology as required; |
• | the credit and business risks associated with our independent distributors and customers which operate in the highly competitive retail food and foodservice industries, including the amount of consolidation in these industries; |
• | changes in pricing, customer and consumer reaction to pricing actions, and the pricing environment among competitors within the industry; |
• | any business disruptions due to political instability, armed hostilities, incidents of terrorism, natural disasters or the responses to or repercussions from any of these or similar events or conditions and our ability to insure against such events; and |
• | regulation and legislation related to climate change that could affect our ability to procure our commodity needs or that necessitate additional unplanned capital expenditures. |
3
JULY 17, 2010 | JANUARY 2, 2010 | |||||||
ASSETS
|
||||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$ | 6,529 | $ | 18,948 | ||||
|
||||||||
Accounts and
notes receivable, net of allowances of $897 and $469, respectively
|
184,735 | 178,708 | ||||||
|
||||||||
Inventories, net:
|
||||||||
Raw materials
|
20,192 | 20,952 | ||||||
Packaging materials
|
13,501 | 12,065 | ||||||
Finished goods
|
28,407 | 27,979 | ||||||
|
||||||||
|
62,100 | 60,996 | ||||||
|
||||||||
Spare parts and supplies
|
36,278 | 35,437 | ||||||
|
||||||||
Deferred taxes
|
13,805 | 20,714 | ||||||
|
||||||||
Other
|
25,291 | 24,152 | ||||||
|
||||||||
Total current assets
|
328,738 | 338,955 | ||||||
|
||||||||
Property, Plant and Equipment, net of accumulated depreciation of $663,140 and
$652,587, respectively
|
596,905 | 602,576 | ||||||
|
||||||||
Notes Receivable
|
92,646 | 94,457 | ||||||
|
||||||||
Assets Held for Sale — Distributor Routes
|
8,856 | 6,535 | ||||||
|
||||||||
Other Assets
|
6,227 | 4,157 | ||||||
|
||||||||
Goodwill
|
200,153 | 201,682 | ||||||
|
||||||||
Other Intangible Assets, net
|
99,824 | 103,080 | ||||||
|
||||||||
Total assets
|
$ | 1,333,349 | $ | 1,351,442 | ||||
|
||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Current Liabilities:
|
||||||||
Current maturities of long-term debt and capital leases
|
$ | 25,340 | $ | 25,763 | ||||
Accounts payable
|
102,286 | 92,692 | ||||||
Other accrued liabilities
|
115,404 | 103,317 | ||||||
|
||||||||
Total current liabilities
|
243,030 | 221,772 | ||||||
|
||||||||
Long-Term Debt and Capital Leases
|
137,233 | 225,905 | ||||||
|
||||||||
Other Liabilities:
|
||||||||
Post-retirement/post-employment obligations
|
67,186 | 68,140 | ||||||
Deferred taxes
|
62,888 | 63,748 | ||||||
Other
|
44,306 | 43,851 | ||||||
|
||||||||
Total other liabilities
|
174,380 | 175,739 | ||||||
|
||||||||
Commitments and Contingencies
|
||||||||
Flowers Foods, Inc. Stockholders’ Equity:
|
||||||||
Preferred stock — $100 par value, 100,000 authorized and none issued
|
— | — | ||||||
Preferred stock — $.01 par value, 900,000 authorized and none issued
|
— | — | ||||||
Common stock — $.01 par value, 500,000,000 authorized shares, 101,659,924
shares and 101,659,924 shares issued, respectively
|
1,017 | 1,017 | ||||||
Treasury stock — 9,742,624 shares and 10,200,387 shares, respectively
|
(181,230 | ) | (189,250 | ) | ||||
Capital in excess of par value
|
533,870 | 531,326 | ||||||
Retained earnings
|
477,625 | 437,524 | ||||||
Accumulated other comprehensive loss
|
(52,576 | ) | (64,672 | ) | ||||
|
||||||||
Total Flowers Foods, Inc. stockholders’ equity
|
778,706 | 715,945 | ||||||
Noncontrolling interest
|
— | 12,081 | ||||||
|
||||||||
Total stockholders’ equity
|
778,706 | 728,026 | ||||||
|
||||||||
Total liabilities and stockholders’ equity
|
$ | 1,333,349 | $ | 1,351,442 | ||||
|
4
FOR THE TWELVE WEEKS ENDED | FOR THE TWENTY-EIGHT WEEKS ENDED | |||||||||||||||
JULY 17, 2010 | JULY 18, 2009 | JULY 17, 2010 | JULY 18, 2009 | |||||||||||||
Sales
|
$ | 607,716 | $ | 614,448 | $ | 1,402,742 | $ | 1,421,455 | ||||||||
Materials, supplies, labor and other production
costs (exclusive of depreciation and
amortization shown separately below)
|
318,553 | 333,339 | 733,351 | 762,801 | ||||||||||||
Selling, distribution and administrative expenses
|
217,906 | 216,602 | 510,457 | 510,624 | ||||||||||||
Depreciation and amortization
|
20,021 | 18,656 | 45,658 | 42,933 | ||||||||||||
Gain on acquisition
|
— | 3,013 | — | 3,013 | ||||||||||||
|
||||||||||||||||
Income from operations
|
51,236 | 48,864 | 113,276 | 108,110 | ||||||||||||
Interest expense
|
(1,984 | ) | (2,806 | ) | (4,768 | ) | (6,401 | ) | ||||||||
Interest income
|
2,940 | 2,986 | 6,855 | 7,040 | ||||||||||||
|
||||||||||||||||
Income before income taxes
|
52,192 | 49,044 | 115,363 | 108,749 | ||||||||||||
Income tax expense
|
18,436 | 17,947 | 40,920 | 39,819 | ||||||||||||
|
||||||||||||||||
Net income
|
33,756 | 31,097 | 74,443 | 68,930 | ||||||||||||
Less: net income attributable to noncontrolling
interest
|
— | (756 | ) | — | (1,208 | ) | ||||||||||
|
||||||||||||||||
Net income attributable to Flowers Foods, Inc.
|
$ | 33,756 | $ | 30,341 | $ | 74,443 | $ | 67,722 | ||||||||
|
||||||||||||||||
Net Income Per Common Share:
|
||||||||||||||||
Basic:
|
||||||||||||||||
Net income attributable to Flowers Foods, Inc.
common shareholders
|
$ | 0.37 | $ | 0.33 | $ | 0.81 | $ | 0.73 | ||||||||
|
||||||||||||||||
Weighted average shares outstanding
|
91,603 | 92,141 | 91,554 | 92,474 | ||||||||||||
|
||||||||||||||||
Diluted:
|
||||||||||||||||
Net income attributable to Flowers Foods, Inc.
common shareholders
|
$ | 0.37 | $ | 0.33 | $ | 0.81 | $ | 0.73 | ||||||||
|
||||||||||||||||
Weighted average shares outstanding
|
92,358 | 92,630 | 92,316 | 92,979 | ||||||||||||
|
||||||||||||||||
Cash dividends paid per common share
|
$ | 0.200 | $ | 0.175 | $ | 0.375 | $ | 0.325 | ||||||||
|
5
Capital | ||||||||||||||||||||||||||||||||||||||||
Common Stock | in | Accumulated | ||||||||||||||||||||||||||||||||||||||
Number of | Excess | Other | Treasury Stock | |||||||||||||||||||||||||||||||||||||
Comprehensive | Shares | Par | of Par | Retained | Comprehensive | Number of | Noncontrolling | |||||||||||||||||||||||||||||||||
Income | Issued | Value | Value | Earnings | Loss | Shares | Cost | interest | Total | |||||||||||||||||||||||||||||||
Balances at January 2, 2010
|
101,659,924 | $ | 1,017 | $ | 531,326 | $ | 437,524 | $ | (64,672 | ) | (10,200,387 | ) | $ | (189,250 | ) | $ | 12,081 | $ | 728,026 | |||||||||||||||||||||
Deconsolidation of Variable Interest
Entity (Note 8)
|
(12,081 | ) | (12,081 | ) | ||||||||||||||||||||||||||||||||||||
Net income
|
$ | 74,443 | 74,443 | 74,443 | ||||||||||||||||||||||||||||||||||||
Derivative
transactions, net
|
11,384 | 11,384 | 11,384 | |||||||||||||||||||||||||||||||||||||
Amortization of prior service credit
|
(58 | ) | (58 | ) | (58 | ) | ||||||||||||||||||||||||||||||||||
Reduction in minimum pension liability
|
68 | 68 | 68 | |||||||||||||||||||||||||||||||||||||
Amortization of actuarial loss
|
702 | 702 | 702 | |||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Comprehensive income
|
$ | 86,539 | ||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Exercise of stock options
|
(937 | ) | 292,087 | 5,432 | 4,495 | |||||||||||||||||||||||||||||||||||
Deferred stock vesting
|
(631 | ) | 33,920 | 631 | — | |||||||||||||||||||||||||||||||||||
Issuance of restricted stock award
|
(4,102 | ) | 220,640 | 4,102 | — | |||||||||||||||||||||||||||||||||||
Amortization of share-based payment
compensation
|
7,374 | 7,374 | ||||||||||||||||||||||||||||||||||||||
Tax benefits related to share based
payment awards
|
810 | 810 | ||||||||||||||||||||||||||||||||||||||
Share-based payment forfeitures
|
30 | (1,613 | ) | (30 | ) | — | ||||||||||||||||||||||||||||||||||
Stock repurchases
|
(87,271 | ) | (2,115 | ) | (2,115 | ) | ||||||||||||||||||||||||||||||||||
Dividends paid — $0.375 per common
share
|
(34,342 | ) | (34,342 | ) | ||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Balances at July 17, 2010
|
101,659,924 | $ | 1,017 | $ | 533,870 | $ | 477,625 | $ | (52,576 | ) | (9,742,624 | ) | $ | (181,230 | ) | $ | — | $ | 778,706 | |||||||||||||||||||||
|
6
FOR THE TWENTY-EIGHT WEEKS ENDED | ||||||||
JULY 17, 2010 | JULY 18, 2009 | |||||||
CASH FLOWS PROVIDED BY (DISBURSED FOR) OPERATING ACTIVITIES:
|
||||||||
Net income
|
$ | 74,443 | $ | 68,930 | ||||
Adjustments to reconcile net income to net cash provided by operating
activities:
|
||||||||
Stock based compensation
|
7,482 | 6,041 | ||||||
Loss reclassified from accumulated other comprehensive income to net income
|
19,293 | 32,995 | ||||||
Depreciation and amortization
|
45,658 | 42,933 | ||||||
Gain on acquisition
|
— | (3,013 | ) | |||||
Deferred income taxes
|
(1,523 | ) | (2,569 | ) | ||||
Provision for inventory obsolescence
|
589 | 338 | ||||||
Allowances for accounts receivable
|
832 | 2,099 | ||||||
Pension and postretirement plans expense
|
992 | 2,753 | ||||||
Other
|
(315 | ) | 247 | |||||
Changes in assets and liabilities:
|
||||||||
Accounts and notes receivable, net
|
(6,999 | ) | (6,164 | ) | ||||
Pension contributions
|
(324 | ) | (450 | ) | ||||
Inventories, net
|
(2,004 | ) | (6,375 | ) | ||||
Other assets
|
13,650 | (3,473 | ) | |||||
Accounts payable and other accrued liabilities
|
3,523 | (17,933 | ) | |||||
|
||||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES
|
155,297 | 116,359 | ||||||
|
||||||||
CASH FLOWS PROVIDED BY (DISBURSED FOR) INVESTING ACTIVITIES:
|
||||||||
Purchase of property, plant and equipment
|
(54,869 | ) | (28,183 | ) | ||||
Proceeds from sale of property, plant and equipment
|
749 | 731 | ||||||
Issuance of notes receivable
|
(5,086 | ) | (6,610 | ) | ||||
Proceeds from notes receivable
|
6,713 | 6,462 | ||||||
Acquisitions, net of cash acquired
|
— | (8,842 | ) | |||||
Deconsolidation of variable interest entity (See Note 8)
|
(8,804 | ) | — | |||||
Other
|
— | (1,104 | ) | |||||
|
||||||||
NET CASH DISBURSED FOR INVESTING ACTIVITIES
|
(61,297 | ) | (37,546 | ) | ||||
|
||||||||
CASH FLOWS PROVIDED BY (DISBURSED FOR) FINANCING ACTIVITIES:
|
||||||||
Dividends paid
|
(34,342 | ) | (30,056 | ) | ||||
Exercise of stock options
|
4,495 | 1,824 | ||||||
Income tax benefit related to stock awards
|
770 | 1,352 | ||||||
Stock repurchases
|
(2,115 | ) | (27,625 | ) | ||||
Change in book overdraft
|
(578 | ) | (3,708 | ) | ||||
Proceeds from debt borrowings
|
381,000 | 456,000 | ||||||
Debt and capital lease obligation payments
|
(455,649 | ) | (476,062 | ) | ||||
Other
|
— | (402 | ) | |||||
|
||||||||
NET CASH DISBURSED FOR FINANCING ACTIVITIES
|
(106,419 | ) | (78,677 | ) | ||||
|
||||||||
Net (decrease) increase in cash and cash equivalents
|
(12,419 | ) | 136 | |||||
Cash and cash equivalents at beginning of period
|
18,948 | 19,964 | ||||||
|
||||||||
Cash and cash equivalents at end of period
|
$ | 6,529 | $ | 20,100 | ||||
|
7
FOR THE TWELVE WEEKS ENDED | FOR THE TWENTY-EIGHT WEEKS ENDED | |||||||||||||||
JULY 17, 2010 | JULY 18, 2009 | JULY 17, 2010 | JULY 18, 2009 | |||||||||||||
(Percent of Sales) | (Percent of Sales) | |||||||||||||||
DSD
|
18.6 | % | 18.8 | % | 18.4 | % | 18.2 | % | ||||||||
Warehouse delivery
|
3.5 | 2.8 | 3.2 | 2.9 | ||||||||||||
|
||||||||||||||||
Total
|
22.1 | % | 21.6 | % | 21.6 | % | 21.1 | % | ||||||||
|
8
Accumulated other comprehensive loss, January 2, 2010
|
$ | (64,672 | ) | |
Derivative transactions:
|
||||
Net deferred gains (losses) on closed contracts, net of income tax of $(5,891)
|
(9,411 | ) | ||
Reclassified to earnings, net of income tax of $7,428
|
11,865 | |||
Effective portion of change in fair value of hedging instruments, net of income tax of $5,590
|
8,930 | |||
Amortization of actuarial loss, net of income tax of $439
|
702 | |||
Minimum pension liability, net of income tax of $42
|
68 | |||
Amortization of prior service credits, net of income tax of $(36)
|
(58 | ) | ||
|
||||
Accumulated other comprehensive loss, July 17, 2010
|
$ | (52,576 | ) | |
|
9
DSD | Warehouse delivery | Total | ||||||||||
Balance as of January 2, 2010
|
$ | 194,581 | $ | 7,101 | $ | 201,682 | ||||||
Adjustment for deconsolidation of VIE (Note 8)
|
(1,529 | ) | — | (1,529 | ) | |||||||
|
||||||||||||
Balance as of July 17, 2010
|
$ | 193,052 | $ | 7,101 | $ | 200,153 | ||||||
|
July 17, 2010 | January 2, 2010 | |||||||||||||||||||||||
Accumulated | Accumulated | |||||||||||||||||||||||
Asset | Cost | Amortization | Net Value | Cost | Amortization | Net Value | ||||||||||||||||||
Trademarks
|
$ | 35,268 | $ | 3,974 | $ | 31,294 | $ | 35,268 | $ | 3,144 | $ | 32,124 | ||||||||||||
Customer relationships
|
75,434 | 11,858 | 63,576 | 75,434 | 9,738 | 65,696 | ||||||||||||||||||
Non-compete agreements
|
1,874 | 1,333 | 541 | 1,874 | 1,309 | 565 | ||||||||||||||||||
Distributor relationships
|
2,600 | 333 | 2,267 | 2,600 | 240 | 2,360 | ||||||||||||||||||
Supply agreement
|
1,050 | 404 | 646 | 1,050 | 215 | 835 | ||||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$ | 116,226 | $ | 17,902 | $ | 98,324 | $ | 116,226 | $ | 14,646 | $ | 101,580 | ||||||||||||
|
2010 | 2009 | |||||||
Amortizable intangible assets expense
|
$ | 1,395 | $ | 1,391 | ||||
Amortizable intangible liabilities (income)
|
(10 | ) | (10 | ) | ||||
|
||||||||
Total, net
|
$ | 1,385 | $ | 1,381 | ||||
|
2010 | 2009 | |||||||
Amortizable intangible assets expense
|
$ | 3,256 | $ | 3,105 | ||||
Amortizable intangible liabilities (income)
|
(24 | ) | (24 | ) | ||||
|
||||||||
Total, net
|
$ | 3,232 | $ | 3,081 | ||||
|
Amortization of | ||||
Intangibles, net | ||||
Remainder of 2010
|
$ | 2,771 | ||
2011
|
$ | 5,948 | ||
2012
|
$ | 5,677 | ||
2013
|
$ | 5,488 | ||
2014
|
$ | 5,389 |
10
Interest Income | ||||
For the twelve weeks ended July 17, 2010
|
$ | 2,940 | ||
For the twelve weeks ended July 18, 2009
|
$ | 2,986 | ||
For the twenty-eight weeks ended July 17, 2010
|
$ | 6,855 | ||
For the twenty-eight weeks ended July 18, 2009
|
$ | 7,040 |
July 17, 2010 | January 2, 2010 | |||||||
Distributor notes receivable
|
$ | 105,440 | $ | 107,067 | ||||
Current portion of distributor notes receivable recorded in accounts and notes receivable, net
|
12,794 | 12,610 | ||||||
|
||||||||
Long-term portion of distributor notes receivable
|
$ | 92,646 | $ | 94,457 | ||||
|
11
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets:
|
||||||||||||||||
Other current
|
$ | 14.3 | $ | — | $ | — | $ | 14.3 | ||||||||
Other long-term
|
0.2 | — | — | 0.2 | ||||||||||||
|
||||||||||||||||
Total
|
14.5 | — | — | 14.5 | ||||||||||||
|
||||||||||||||||
Liabilities:
|
||||||||||||||||
Other current
|
— | (2.0 | ) | — | (2.0 | ) | ||||||||||
Other long-term
|
— | (0.5 | ) | — | (0.5 | ) | ||||||||||
|
||||||||||||||||
Total
|
— | (2.5 | ) | — | (2.5 | ) | ||||||||||
|
||||||||||||||||
Net Fair Value
|
$ | 14.5 | $ | (2.5 | ) | $ | — | $ | 12.0 | |||||||
|
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets:
|
||||||||||||||||
Other current
|
$ | — | $ | — | $ | — | $ | — | ||||||||
Other long-term
|
— | — | — | — | ||||||||||||
|
||||||||||||||||
Total
|
— | — | — | — | ||||||||||||
|
||||||||||||||||
Liabilities:
|
||||||||||||||||
Other current
|
— | (4.0 | ) | — | (4.0 | ) | ||||||||||
Other long-term
|
— | (3.9 | ) | — | (3.9 | ) | ||||||||||
|
||||||||||||||||
Total
|
— | (7.9 | ) | — | (7.9 | ) | ||||||||||
|
||||||||||||||||
Net Fair Value
|
$ | — | $ | (7.9 | ) | $ | — | $ | (7.9 | ) | ||||||
|
12
Derivative Assets | Derivative Liabilities | |||||||||||||||||||||||||||||||
July 17, 2010 | January 2, 2010 | July 17, 2010 | January 2, 2010 | |||||||||||||||||||||||||||||
Derivatives designated as | Balance | Balance | Balance | Balance | ||||||||||||||||||||||||||||
hedging | Sheet | Fair | Sheet | Fair | Sheet | Fair | Sheet | Fair | ||||||||||||||||||||||||
instruments | location | Value | location | Value | location | Value | location | Value | ||||||||||||||||||||||||
Interest rate contracts
|
— | $ | — | — | $ | — | Other current liabilities | $ | 3,979 | Other current liabilities | $ | 4,271 | ||||||||||||||||||||
Interest rate contracts
|
— | — | — | — | Other long term liabilities | 3,919 | Other long term liabilities | 2,459 | ||||||||||||||||||||||||
Commodity contracts
|
Other current assets | 14,326 | Other current assets | 2,501 | Other current liabilities | 1,978 | Other current liabilities | 6,143 | ||||||||||||||||||||||||
Commodity contracts
|
Other long term assets | 146 | Other long term assets | — | Other long term liabilities | 527 | Other long term liabilities | 78 | ||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Total
|
$ | 14,472 | $ | 2,501 | $ | 10,403 | $ | 12,951 | ||||||||||||||||||||||||
|
Amount of Gain or (Loss) | Amount of Gain or (Loss) Reclassified | |||||||||||||||||||
Recognized in OCI on | Location of Gain or (Loss) | from Accumulated OCI into Income | ||||||||||||||||||
Derivatives in | Derivative (Effective Portion) | Reclassified from AOCI into | (Effective Portion) | |||||||||||||||||
Cash Flow Hedge | For the twelve weeks ended | Income | For the twelve weeks ended | |||||||||||||||||
Relationships | July 17, 2010 | July 18, 2009 | (Effective Portion) | July 17, 2010 | July 18, 2009 | |||||||||||||||
Interest rate contracts
|
$ | 584 | $ | 794 | Interest expense (income) | $ | — | $ | — | |||||||||||
Commodity contracts
|
— | — | Selling, distribution and administrative | — | (353 | ) | ||||||||||||||
Commodity contracts
|
(5,096 | ) | (2,675 | ) | Production costs(1) | (4,777 | ) | (12,768 | ) | |||||||||||
|
||||||||||||||||||||
Total
|
$ | (4,512 | ) | $ | (1,881 | ) | $ | (4,777 | ) | $ | (13,121 | ) | ||||||||
|
Amount of Gain or (Loss) | Amount of Gain or (Loss) Reclassified | |||||||||||||||||||
Recognized in OCI on | Location of Gain or (Loss) | from Accumulated OCI into Income | ||||||||||||||||||
Derivatives in | Derivative (Effective Portion) | Reclassified from AOCI into | (Effective Portion) | |||||||||||||||||
Cash Flow Hedge | For the twenty-eight weeks ended | Income | For the twenty-eight weeks ended | |||||||||||||||||
Relationships | July 17, 2010 | July 18, 2009 | (Effective Portion) | July 17, 2010 | July 18, 2009 | |||||||||||||||
Interest rate contracts
|
$ | 718 | $ | 1,460 | Interest expense (income) | $ | — | $ | — | |||||||||||
Commodity contracts
|
— | — | Selling, distribution and administrative | — | (875 | ) | ||||||||||||||
Commodity contracts
|
(1,199 | ) | (638 | ) | Production costs(1) | (11,865 | ) | (19,417 | ) | |||||||||||
|
||||||||||||||||||||
Total
|
$ | (481 | ) | $ | 822 | $ | (11,865 | ) | $ | (20,292 | ) | |||||||||
|
1. | Included in Materials, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately). |
Amount of Gain or (Loss) | ||||||||||||
Recognized in Income on | ||||||||||||
Derivative (Ineffective Portion | ||||||||||||
Location of Gain or (Loss) Recognized | and Amount Excluded from | |||||||||||
in Income on Derivative (Ineffective | Effectiveness Testing)(net of tax) | |||||||||||
Derivatives in Cash | Portion and Amount Excluded from | For the twenty-eight weeks ended | ||||||||||
Flow Hedge Relationships | Effectiveness Testing) | July 17, 2010 | July 18, 2009 | |||||||||
Interest rate contracts
|
Selling, distribution and administrative expenses | $ | — | $ | — | |||||||
Commodity contracts
|
Selling, distribution and administrative | |||||||||||
expenses | — | (617 | ) | |||||||||
|
||||||||||||
Total
|
$ | — | $ | (617 | ) | |||||||
|
Notional amount | ||||
Derivative in Cash Flow Hedge Relationship | (millions) | |||
Interest rate contracts
|
$ | 123.8 | ||
Wheat contracts
|
64.4 | |||
Soybean Oil contracts
|
16.0 | |||
Natural gas contracts
|
14.0 | |||
|
||||
Total
|
$ | 218.2 | ||
|
13
JULY 17, 2010 | JANUARY 2, 2010 | |||||||
Unsecured credit facility
|
$ | 25,000 | $ | 89,000 | ||||
Unsecured term loan
|
123,750 | 131,250 | ||||||
Capital lease obligations
|
11,122 | 26,555 | ||||||
Other notes payable
|
2,701 | 4,863 | ||||||
|
||||||||
|
162,573 | 251,668 | ||||||
Less current maturities
|
25,340 | 25,763 | ||||||
|
||||||||
Total long-term debt and capital leases
|
$ | 137,233 | $ | 225,905 | ||||
|
14
TWELVE WEEKS ENDED | TWENTY-EIGHT WEEKS ENDED | |||||||||||||||
JULY 18, 2009 | JULY 18, 2009 | |||||||||||||||
% OF | % OF | |||||||||||||||
VIE | TOTAL | VIE | TOTAL | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Assets as of
respective period ends
|
$ | 34,349 | 2.5 | % | $ | 34,349 | 2.5 | % | ||||||||
Sales
|
$ | 3,088 | 0.5 | % | $ | 4,616 | 0.3 | % | ||||||||
Income before income taxes
|
$ | 756 | 1.5 | % | $ | 1,208 | 1.1 | % |
15
FOR THE TWELVE WEEKS ENDED | FOR THE TWENTY-EIGHT WEEKS ENDED | |||||||||||||||
JULY 17, 2010 | JULY 18, 2009 | JULY 17, 2010 | JULY 18, 2009 | |||||||||||||
Net income attributable to Flowers Foods, Inc.
|
$ | 33,756 | $ | 30,341 | $ | 74,443 | $ | 67,722 | ||||||||
|
||||||||||||||||
Dividends on restricted shares not expected to vest*
|
— | — | — | — | ||||||||||||
|
||||||||||||||||
Net income attributable to common and participating shareholders
|
$ | 33,756 | $ | 30,341 | $ | 74,443 | $ | 67,722 | ||||||||
|
||||||||||||||||
Basic Earnings Per Common Share:
|
||||||||||||||||
Weighted average shares outstanding for common stock
|
91,399 | 91,727 | 91,314 | 92,061 | ||||||||||||
Weighted average shares outstanding for participating securities
|
204 | 414 | 240 | 413 | ||||||||||||
|
||||||||||||||||
Basic weighted average shares outstanding per common share
|
91,603 | 92,141 | 91,554 | 92,474 | ||||||||||||
|
||||||||||||||||
Basic earnings per common share attributable to Flowers Foods,
Inc. common shareholders
|
$ | 0.37 | $ | 0.33 | $ | 0.81 | $ | 0.73 | ||||||||
|
||||||||||||||||
Diluted Earnings Per Common Share:
|
||||||||||||||||
Basic weighted average shares outstanding per common share
|
91,603 | 92,141 | 91,554 | 92,474 | ||||||||||||
Add: Shares of common stock assumed issued upon exercise of stock
options and vesting of restricted stock
|
755 | 489 | 762 | 505 | ||||||||||||
|
||||||||||||||||
Diluted weighted average shares outstanding per common share
|
92,358 | 92,630 | 92,316 | 92,979 | ||||||||||||
|
||||||||||||||||
Diluted earnings per common share attributable to Flowers Foods,
Inc. common shareholders
|
$ | 0.37 | $ | 0.33 | $ | 0.81 | $ | 0.73 | ||||||||
|
* | The company expects all restricted share awards outstanding at July 17, 2010 and July 18, 2009 to vest. |
Grant date | 2/9/2010 | 2/9/2009 | 2/4/2008 | |||||||||
Shares granted
|
1,136 | 993 | 850 | |||||||||
Exercise price
|
25.01 | 23.84 | 24.75 | |||||||||
Vesting date
|
2/9/2013 | 2/9/2012 | 2/4/2011 | |||||||||
Fair value per share ($)
|
5.54 | 5.87 | 5.80 | |||||||||
Dividend yield (%)(1)
|
3.00 | 2.20 | 1.90 | |||||||||
Expected volatility (%)(2)
|
30.60 | 31.80 | 27.30 | |||||||||
Risk-free interest rate (%)(3)
|
2.35 | 2.00 | 2.79 | |||||||||
Expected option life (years)(4)
|
5.00 | 5.00 | 5.00 | |||||||||
Outstanding at July 17, 2010
|
1,130 | 989 | 844 |
1. | Dividend yield — estimated yield based on the historical dividend payment for the four most recent dividend payments prior to the grant date. | |
2. | Expected volatility — based on historical volatility over the expected term using daily stock prices. | |
3. | Risk-free interest rate — United States Treasury Constant Maturity rates as of the grant date over the expected term. | |
4. | Expected option life — The 2008, 2009, and 2010 grant assumptions are based on the simplified formula determined in accordance with Staff Accounting Bulletin No. 110. The company does not have sufficient historical exercise behavior data to reasonably estimate the expected option life. |
16
Weighted | Weighted Average | |||||||||||||||
Average | Remaining | Aggregate | ||||||||||||||
Options | Exercise Price | Contractual Term | Intrinsic Value | |||||||||||||
Outstanding at January 2, 2010
|
3,734 | $ | 20.34 | |||||||||||||
Granted
|
1,136 | $ | 25.01 | |||||||||||||
Exercised
|
(292 | ) | $ | 8.66 | ||||||||||||
Forfeited
|
(13 | ) | $ | 24.58 | ||||||||||||
|
||||||||||||||||
Outstanding at July 17, 2010
|
4,565 | $ | 21.80 | 4.73 | $ | 12,712 | ||||||||||
|
||||||||||||||||
Exercisable at July 17, 2010
|
1,631 | $ | 16.88 | 3.05 | $ | 12,188 | ||||||||||
|
July 17, | July 18, | |||||||
2010 | 2009 | |||||||
Cash received from option exercises
|
$ | 4,495 | $ | 1,824 | ||||
Cash tax windfall, net
|
$ | 570 | $ | 918 | ||||
Intrinsic value of stock options exercised
|
$ | 2,796 | $ | 2,709 |
• | If the ROI Target is satisfied, then the performance-contingent restricted stock grant may be adjusted based on the company’s total return to shareholders (“Company TSR”) percent rank as compared to the total return to shareholders of the S&P Packaged Food & Meat Index (“S&P TSR”) in the manner set forth below: |
• | If the Company TSR rank is equal to the 50th percentile of the S&P TSR, then no adjustment; | ||
• | If the Company TSR rank is less than the 50th percentile of the S&P TSR, the grant shall be reduced by 1.3% for each percentile below the 50th percentile that the Company TSR is less than the 50th percentile of S&P TSR, but in no event shall such reduction exceed 20%; or | ||
• | If the Company TSR rank is greater than the 50th percentile of the S&P TSR, the grant shall be increased by 1.3% for each percentile above the 50th percentile that Company TSR is greater than the 50th percentile of S&P TSR, but in no event shall such increase exceed 20%. |
17
Grant date | 2/9/2010 | 2/9/2009 | 2/4/2008 | |||||||||
Shares granted
|
179 | 204 | 210 | |||||||||
Vesting date
|
2/9/2012 | 2/9/2011 | 2/4/2010 | |||||||||
Fair value per share
|
$ | 26.38 | $ | 24.96 | $ | 27.03 | ||||||
Expense during the twelve weeks ended July 17, 2010
|
$ | 541 | $ | 582 | $ | — | ||||||
Expense during the twelve weeks ended July 18, 2009
|
$ | — | $ | 588 | $ | 655 | ||||||
Expense during the twenty-eight weeks ended July 17, 2010
|
$ | 1,085 | $ | 1,366 | $ | 218 | ||||||
Expense during the twenty-eight weeks ended July 18, 2009
|
$ | — | $ | 1,176 | $ | 1,528 |
Weighted | ||||||||
Average | ||||||||
Grant Date | ||||||||
Shares | Fair Value | |||||||
Nonvested at January 2, 2010
|
414 | $ | 26.01 | |||||
Granted
|
179 | $ | 26.38 | |||||
Vested
|
(210 | ) | $ | 27.03 | ||||
Forfeited
|
(2 | ) | $ | 25.73 | ||||
|
||||||||
Nonvested at July 17, 2010
|
381 | $ | 25.62 | |||||
|
18
Weighted | ||||||||||||||||
Weighted | Average | Aggregate | ||||||||||||||
Average | Remaining | Current | ||||||||||||||
Grant Date | Contractual | Intrinsic | ||||||||||||||
Rights | Fair Value | Term | Value | |||||||||||||
Outstanding at January 2, 2010
|
231 | $ | 11.14 | |||||||||||||
Rights exercised
|
— | — | ||||||||||||||
Rights forfeited
|
— | — | ||||||||||||||
|
||||||||||||||||
Outstanding at July 17, 2010
|
231 | $ | 11.14 | 3.38 | $ | 3,070 | ||||||||||
|
Weighted | Weighted Average | |||||||||||||||
Average | Remaining | Aggregate | ||||||||||||||
Shares | Grant Price | Contractual Term (Years) | Intrinsic Value | |||||||||||||
Outstanding at January 2, 2010
|
130 | $ | 21.90 | |||||||||||||
Deferred stock issued
|
64 | $ | 23.11 | |||||||||||||
Deferred stock exercised
|
(34 | ) | $ | 20.57 | ||||||||||||
|
||||||||||||||||
Outstanding at July 17, 2010
|
160 | $ | 22.66 | 0.78 | $ | 317 | ||||||||||
|
FOR THE TWELVE WEEKS ENDED | FOR THE TWENTY-EIGHT WEEKS ENDED | |||||||||||||||
JULY 17, 2010 | JULY 18, 2009 | JULY 17, 2010 | JULY 18, 2009 | |||||||||||||
Stock options
|
$ | 1,544 | $ | 1,205 | $ | 3,954 | $ | 2,661 | ||||||||
Restricted stock
|
1,123 | 1,243 | 2,669 | 2,874 | ||||||||||||
Stock appreciation rights
|
(259 | ) | (245 | ) | 108 | (234 | ) | |||||||||
Deferred stock
|
321 | 311 | 751 | 740 | ||||||||||||
|
||||||||||||||||
Total stock based compensation
|
$ | 2,729 | $ | 2,514 | $ | 7,482 | $ | 6,041 | ||||||||
|
19
AS OF | ||||||||
JULY 17, | JANUARY 2, | |||||||
2010 | 2010 | |||||||
Noncurrent benefit asset
|
$ | — | $ | — | ||||
Current benefit liability
|
$ | 841 | $ | 841 | ||||
Noncurrent benefit liability
|
$ | 67,186 | $ | 68,140 | ||||
Accumulated other comprehensive loss
|
$ | 52,097 | $ | 52,808 |
FOR THE TWELVE WEEKS ENDED | FOR THE TWENTY-EIGHT WEEKS ENDED | |||||||||||||||
JULY 17, 2010 | JULY 18, 2009 | JULY 17, 2010 | JULY 18, 2009 | |||||||||||||
Service cost
|
$ | 89 | $ | 72 | $ | 209 | $ | 168 | ||||||||
Interest cost
|
4,308 | 4,309 | 10,051 | 10,053 | ||||||||||||
Expected return on plan assets
|
(4,769 | ) | (4,370 | ) | (11,127 | ) | (10,196 | ) | ||||||||
Amortization of net loss
|
503 | 629 | 1,173 | 1,468 | ||||||||||||
|
||||||||||||||||
Total net periodic benefit cost
|
$ | 131 | $ | 640 | $ | 306 | $ | 1,493 | ||||||||
|
FOR THE TWELVE WEEKS ENDED | FOR THE TWENTY-EIGHT WEEKS ENDED | |||||||||||||||
JULY 17, 2010 | JULY 18, 2009 | JULY 17, 2010 | JULY 18, 2009 | |||||||||||||
Service cost
|
$ | 143 | $ | 198 | $ | 340 | $ | 463 | ||||||||
Interest cost
|
200 | 257 | 471 | 599 | ||||||||||||
Amortization of prior service (credit) cost
|
(62 | ) | 77 | (94 | ) | 179 | ||||||||||
Amortization of net (gain) loss
|
(19 | ) | 8 | (31 | ) | 19 | ||||||||||
|
||||||||||||||||
Total net periodic benefit cost
|
$ | 262 | $ | 540 | $ | 686 | $ | 1,260 | ||||||||
|
20
FOR THE TWELVE WEEKS ENDED | FOR THE TWENTY-EIGHT WEEKS ENDED | |||||||||||||||
JULY 17, 2010 | JULY 18, 2009 | JULY 17, 2010 | JULY 18, 2009 | |||||||||||||
SALES:
|
||||||||||||||||
DSD
|
$ | 495,540 | $ | 514,293 | $ | 1,149,318 | $ | 1,187,286 | ||||||||
Warehouse delivery
|
143,590 | 132,807 | 328,535 | 307,438 | ||||||||||||
Eliminations: Sales from warehouse
delivery to DSD
|
(25,793 | ) | (25,834 | ) | (61,886 | ) | (61,733 | ) | ||||||||
Sales from DSD to warehouse delivery
|
(5,621 | ) | (6,818 | ) | (13,225 | ) | (11,536 | ) | ||||||||
|
||||||||||||||||
|
$ | 607,716 | $ | 614,448 | $ | 1,402,742 | $ | 1,421,455 | ||||||||
|
||||||||||||||||
DEPRECIATION AND AMORTIZATION:
|
||||||||||||||||
DSD
|
$ | 15,463 | $ | 14,952 | $ | 35,565 | $ | 34,489 | ||||||||
Warehouse delivery
|
4,533 | 3,661 | 10,069 | 8,307 | ||||||||||||
Unallocated
|
25 | 43 | 24 | 137 | ||||||||||||
|
||||||||||||||||
|
$ | 20,021 | $ | 18,656 | $ | 45,658 | $ | 42,933 | ||||||||
|
||||||||||||||||
INCOME FROM OPERATIONS:
|
||||||||||||||||
DSD
|
$ | 47,787 | $ | 45,693 | $ | 108,470 | $ | 102,623 | ||||||||
Warehouse delivery
|
11,841 | 12,108 | 25,374 | 26,332 | ||||||||||||
Unallocated
|
(8,392 | ) | (8,937 | ) | (20,568 | ) | (20,845 | ) | ||||||||
|
||||||||||||||||
|
$ | 51,236 | $ | 48,864 | $ | 113,276 | $ | 108,110 | ||||||||
|
||||||||||||||||
NET INTEREST INCOME
|
$ | 956 | $ | 180 | $ | 2,087 | $ | 639 | ||||||||
|
||||||||||||||||
INCOME BEFORE INCOME TAXES
|
$ | 52,192 | $ | 49,044 | $ | 115,363 | $ | 108,749 | ||||||||
|
21
For the twelve weeks ended July 17, 2010 | For the twelve weeks ended July 18, 2009 | |||||||||||||||||||||||
DSD | Warehouse delivery | Total | DSD | Warehouse delivery | Total | |||||||||||||||||||
Branded Retail
|
$ | 289,901 | $ | 24,675 | $ | 314,576 | $ | 291,449 | $ | 31,219 | $ | 322,668 | ||||||||||||
Store Branded Retail
|
81,335 | 25,435 | 106,770 | 89,536 | 13,062 | 102,598 | ||||||||||||||||||
Non-retail and Other
|
118,683 | 67,687 | 186,370 | 126,490 | 62,692 | 189,182 | ||||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$ | 489,919 | $ | 117,797 | $ | 607,716 | $ | 507,475 | $ | 106,973 | $ | 614,448 | ||||||||||||
|
For the twenty-eight weeks ended July 17, 2010 | For the twenty-eight weeks ended July 18, 2009 | |||||||||||||||||||||||
DSD | Warehouse delivery | Total | DSD | Warehouse delivery | Total | |||||||||||||||||||
Branded Retail
|
$ | 669,852 | $ | 65,653 | $ | 735,505 | $ | 666,349 | $ | 71,404 | $ | 737,753 | ||||||||||||
Store Branded Retail
|
181,003 | 47,192 | 228,195 | 199,597 | 32,011 | 231,608 | ||||||||||||||||||
Non-retail and Other
|
285,238 | 153,804 | 439,042 | 309,804 | 142,290 | 452,094 | ||||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$ | 1,136,093 | $ | 266,649 | $ | 1,402,742 | $ | 1,175,750 | $ | 245,705 | $ | 1,421,455 | ||||||||||||
|
22
23
For the twelve weeks ended | ||||||||||||||||||||||||
Percentage of Sales | Increase (Decrease) | |||||||||||||||||||||||
July 17, 2010 | July 18, 2009 | July 17, 2010 | July 18, 2009 | Dollars | % | |||||||||||||||||||
Sales
|
||||||||||||||||||||||||
DSD
|
$ | 489,919 | $ | 507,475 | 80.6 | 82.6 | $ | (17,556 | ) | (3.5 | ) | |||||||||||||
Warehouse delivery
|
117,797 | 106,973 | 19.4 | 17.4 | 10,824 | 10.1 | ||||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$ | 607,716 | $ | 614,448 | 100.0 | 100.0 | $ | (6,732 | ) | (1.1 | ) | |||||||||||||
|
||||||||||||||||||||||||
Materials, supplies, labor and other
production costs (exclusive of depreciation and
amortization shown separately below)
|
||||||||||||||||||||||||
DSD (1)
|
$ | 234,612 | $ | 256,022 | 47.9 | 50.5 | $ | (21,410 | ) | (8.4 | ) | |||||||||||||
Warehouse delivery(1)
|
83,941 | 77,317 | 71.3 | 72.3 | 6,624 | 8.6 | ||||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$ | 318,553 | $ | 333,339 | 52.4 | 54.3 | $ | (14,786 | ) | (4.4 | ) | |||||||||||||
|
||||||||||||||||||||||||
Selling, distribution and administrative expenses
|
||||||||||||||||||||||||
DSD(1)
|
$ | 192,057 | $ | 190,808 | 39.2 | 37.6 | $ | 1,249 | 0.7 | |||||||||||||||
Warehouse delivery(1)
|
17,482 | 16,900 | 14.8 | 15.8 | 582 | 3.4 | ||||||||||||||||||
Corporate(2)
|
8,367 | 8,894 | — | — | (527 | ) | (5.9 | ) | ||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$ | 217,906 | $ | 216,602 | 35.9 | 35.3 | $ | 1,304 | 0.6 | |||||||||||||||
|
||||||||||||||||||||||||
Depreciation and amortization
|
||||||||||||||||||||||||
DSD(1)
|
$ | 15,463 | $ | 14,952 | 3.2 | 2.9 | $ | 511 | 3.4 | |||||||||||||||
Warehouse delivery(1)
|
4,533 | 3,661 | 3.8 | 3.4 | 872 | 23.8 | ||||||||||||||||||
Corporate(2)
|
25 | 43 | — | — | (18 | ) | (41.9 | ) | ||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$ | 20,021 | $ | 18,656 | 3.3 | 3.0 | $ | 1,365 | 7.3 | |||||||||||||||
|
||||||||||||||||||||||||
Gain on acquisition
|
||||||||||||||||||||||||
DSD(2)
|
$ | — | $ | — | — | — | $ | — | — | |||||||||||||||
Warehouse delivery (1)
|
— | 3,013 | — | 2.8 | 3,013 | — | ||||||||||||||||||
Corporate (2)
|
— | — | — | — | — | — | ||||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$ | — | $ | 3,013 | — | 0.5 | $ | 3,013 | — | |||||||||||||||
|
||||||||||||||||||||||||
Income from operations
|
||||||||||||||||||||||||
DSD(1)
|
$ | 47,787 | $ | 45,693 | 9.8 | 9.0 | $ | 2,094 | 4.6 | |||||||||||||||
Warehouse delivery(1)
|
11,841 | 12,108 | 10.1 | 11.3 | (267 | ) | (2.2 | ) | ||||||||||||||||
Corporate(2)
|
(8,392 | ) | (8,937 | ) | — | — | 545 | 6.1 | ||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$ | 51,236 | $ | 48,864 | 8.4 | 8.0 | $ | 2,372 | 4.9 | |||||||||||||||
|
||||||||||||||||||||||||
Interest income, net
|
$ | 956 | $ | 180 | 0.2 | 0.0 | $ | 776 | 431.1 | |||||||||||||||
Income taxes
|
$ | 18,436 | $ | 17,947 | 3.0 | 2.9 | $ | 489 | 2.7 | |||||||||||||||
Net income
|
$ | 33,756 | $ | 31,097 | 5.6 | 5.1 | $ | 2,659 | 8.6 | |||||||||||||||
Net income attributable to noncontrolling interest
|
$ | — | $ | (756 | ) | — | (0.1 | ) | $ | 756 | — | |||||||||||||
|
||||||||||||||||||||||||
Net income attributable to Flowers Foods, Inc.
|
$ | 33,756 | $ | 30,341 | 5.6 | 4.9 | $ | 3,415 | 11.3 | |||||||||||||||
|
1. | As a percentage of revenue within the reporting segment. | |
2. | The corporate segment has no revenues. |
24
For the twenty-eight weeks ended | ||||||||||||||||||||||||
Percentage of Sales | Increase (Decrease) | |||||||||||||||||||||||
July 17, 2010 | July 18, 2009 | July 17, 2010 | July 18, 2009 | Dollars | % | |||||||||||||||||||
Sales
|
||||||||||||||||||||||||
DSD
|
$ | 1,136,093 | $ | 1,175,750 | 81.0 | 82.7 | $ | (39,657 | ) | (3.4 | ) | |||||||||||||
Warehouse delivery
|
266,649 | 245,705 | 19.0 | 17.3 | 20,944 | 8.5 | ||||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$ | 1,402,742 | $ | 1,421,455 | 100.0 | 100.0 | $ | (18,713 | ) | (1.3 | ) | |||||||||||||
|
||||||||||||||||||||||||
Materials, supplies, labor
and other production costs
(exclusive of depreciation
and amortization shown
separately below)
|
||||||||||||||||||||||||
DSD (1)
|
$ | 543,442 | $ | 588,649 | 47.8 | 50.1 | $ | (45,207 | ) | (7.7 | ) | |||||||||||||
Warehouse delivery(1)
|
189,909 | 174,152 | 71.2 | 70.9 | 15,757 | 9.0 | ||||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$ | 733,351 | $ | 762,801 | 52.3 | 53.7 | $ | (29,450 | ) | (3.9 | ) | |||||||||||||
|
||||||||||||||||||||||||
Selling, distribution and
administrative expenses
|
||||||||||||||||||||||||
DSD(1)
|
$ | 448,616 | $ | 449,989 | 39.5 | 38.3 | $ | (1,373 | ) | (0.3 | ) | |||||||||||||
Warehouse delivery(1)
|
41,297 | 39,927 | 15.5 | 16.2 | 1,370 | 3.4 | ||||||||||||||||||
Corporate(2)
|
20,544 | 20,708 | — | — | (164 | ) | (0.8 | ) | ||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$ | 510,457 | $ | 510,624 | 36.4 | 35.9 | $ | (167 | ) | (0.0 | ) | |||||||||||||
|
||||||||||||||||||||||||
Depreciation and amortization
|
||||||||||||||||||||||||
DSD(1)
|
$ | 35,565 | $ | 34,489 | 3.1 | 2.9 | $ | 1,076 | 3.1 | |||||||||||||||
Warehouse delivery(1)
|
10,069 | 8,307 | 3.8 | 3.4 | 1,762 | 21.2 | ||||||||||||||||||
Corporate(2)
|
24 | 137 | — | — | (113 | ) | (82.5 | ) | ||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$ | 45,658 | $ | 42,933 | 3.3 | 3.0 | $ | 2,725 | 6.3 | |||||||||||||||
|
||||||||||||||||||||||||
Gain on acquisition
|
||||||||||||||||||||||||
DSD(1)
|
$ | — | $ | — | — | — | $ | — | — | |||||||||||||||
Warehouse delivery (1)
|
— | 3,013 | — | 1.2 | 3,013 | — | ||||||||||||||||||
Corporate (2)
|
— | — | — | — | — | — | ||||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$ | — | $ | 3,013 | — | 0.2 | $ | 3,013 | — | |||||||||||||||
|
||||||||||||||||||||||||
Income from operations
|
||||||||||||||||||||||||
DSD(1)
|
$ | 108,470 | $ | 102,623 | 9.5 | 8.7 | $ | 5,847 | 5.7 | |||||||||||||||
Warehouse delivery(1)
|
25,374 | 26,332 | 9.5 | 10.7 | (958 | ) | (3.6 | ) | ||||||||||||||||
Corporate(2)
|
(20,568 | ) | (20,845 | ) | — | — | 277 | 1.3 | ||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$ | 113,276 | $ | 108,110 | 8.1 | 7.6 | $ | 5,166 | 4.8 | |||||||||||||||
|
||||||||||||||||||||||||
Interest income, net
|
$ | 2,087 | $ | 639 | 0.1 | 0.0 | $ | 1,448 | 226.6 | |||||||||||||||
Income taxes
|
$ | 40,920 | $ | 39,819 | 2.9 | 2.8 | $ | 1,101 | 2.8 | |||||||||||||||
Net income
|
$ | 74,443 | $ | 68,930 | 5.3 | 4.8 | $ | 5,513 | 8.0 | |||||||||||||||
Net income attributable to
noncontrolling interest
|
$ | — | $ | (1,208 | ) | — | (0.1 | ) | $ | 1,208 | — | |||||||||||||
|
||||||||||||||||||||||||
Net income attributable to
Flowers Foods, Inc.
|
$ | 74,443 | $ | 67,722 | 5.3 | 4.8 | $ | 6,721 | 9.9 | |||||||||||||||
|
1. | As a percentage of revenue within the reporting segment. | |
2. | The corporate segment has no revenues. |
25
For the Twelve Weeks Ended | For the Twelve Weeks Ended | |||||||||||||||||||
July 17, 2010 | July 18, 2009 | % Increase | ||||||||||||||||||
Sales category | $ | % | $ | % | (Decrease) | |||||||||||||||
(Amounts in | (Amounts in | |||||||||||||||||||
thousands) | thousands) | |||||||||||||||||||
Branded Retail
|
$ | 314,576 | 51.8 | % | $ | 322,668 | 52.5 | % | (2.5 | )% | ||||||||||
Store Branded Retail
|
106,770 | 17.6 | 102,598 | 16.7 | 4.1 | % | ||||||||||||||
Non-retail and Other
|
186,370 | 30.6 | 189,182 | 30.8 | (1.5 | )% | ||||||||||||||
|
||||||||||||||||||||
Total
|
$ | 607,716 | 100.0 | % | $ | 614,448 | 100.0 | % | (1.1 | )% | ||||||||||
|
Favorable | ||||
Percentage Point Change in Sales Attributed to: | (Unfavorable) | |||
Pricing/Mix
|
(3.5 | )% | ||
Volume
|
1.9 | % | ||
VIE deconsolidation
|
(0.5 | )% | ||
Acquisitions
|
1.0 | % | ||
|
||||
Total Percentage Change in Sales
|
(1.1 | )% | ||
|
For the Twelve Weeks Ended | For the Twelve Weeks Ended | |||||||||||||||||||
July 17, 2010 | July 18, 2009 | |||||||||||||||||||
Sales Category | $ | % | $ | % | % (Decrease) | |||||||||||||||
(Amounts in | (Amounts in | |||||||||||||||||||
thousands) | thousands) | |||||||||||||||||||
Branded Retail
|
$ | 289,901 | 59.2 | % | $ | 291,449 | 57.4 | % | (0.5 | )% | ||||||||||
Store Branded Retail
|
81,335 | 16.6 | 89,536 | 17.6 | (9.2 | )% | ||||||||||||||
Non-retail and Other
|
118,683 | 24.2 | 126,490 | 25.0 | (6.2 | )% | ||||||||||||||
|
||||||||||||||||||||
Total
|
$ | 489,919 | 100.0 | % | $ | 507,475 | 100.0 | % | (3.5 | )% | ||||||||||
|
Favorable | ||||
Percentage Point Change in Sales Attributed to: | (Unfavorable) | |||
Pricing/Mix
|
(3.9 | )% | ||
Volume
|
1.0 | % | ||
VIE deconsolidation
|
(0.6 | )% | ||
|
||||
Total Percentage Change in Sales
|
(3.5 | )% | ||
|
26
For the Twelve Weeks Ended | For the Twelve Weeks Ended | |||||||||||||||||||
July 17, 2010 | July 18, 2009 | % Increase | ||||||||||||||||||
Sales Category | $ | % | $ | % | (Decrease) | |||||||||||||||
(Amounts in | (Amounts in | |||||||||||||||||||
thousands) | thousands) | |||||||||||||||||||
Branded Retail
|
$ | 24,675 | 20.9 | % | $ | 31,219 | 29.2 | % | (21.0 | )% | ||||||||||
Store Branded Retail
|
25,435 | 21.6 | 13,062 | 12.2 | 94.7 | % | ||||||||||||||
Non-retail and Other
|
67,687 | 57.5 | 62,692 | 58.6 | 8.0 | % | ||||||||||||||
|
||||||||||||||||||||
Total
|
$ | 117,797 | 100.0 | % | $ | 106,973 | 100.0 | % | 10.1 | % | ||||||||||
|
Favorable | ||||
Percentage Point Change in Sales Attributed to: | (Unfavorable) | |||
Pricing/Mix
|
(0.1 | )% | ||
Volume
|
4.3 | % | ||
Acquisition
|
5.9 | % | ||
|
||||
Total Percentage Change in Sales
|
10.1 | % | ||
|
27
For the Twenty-Eight Weeks Ended | For the Twenty-Eight Weeks Ended | |||||||||||||||||||
July 17, 2010 | July 18, 2009 | |||||||||||||||||||
Sales category | $ | % | $ | % | % (Decrease) | |||||||||||||||
(Amounts in | (Amounts in | |||||||||||||||||||
thousands) | thousands) | |||||||||||||||||||
Branded Retail
|
$ | 735,505 | 52.4 | % | $ | 737,753 | 51.9 | % | (0.3 | )% | ||||||||||
Store Branded Retail
|
228,195 | 16.3 | 231,608 | 16.3 | (1.5 | )% | ||||||||||||||
Non-retail and Other
|
439,042 | 31.3 | 452,094 | 31.8 | (2.9 | )% | ||||||||||||||
|
||||||||||||||||||||
Total
|
$ | 1,402,742 | 100.0 | % | $ | 1,421,455 | 100.0 | % | (1.3 | )% | ||||||||||
|
Favorable | ||||
Percentage Point Change in Sales Attributed to: | (Unfavorable) | |||
Pricing/Mix
|
(2.9 | )% | ||
Volume
|
0.4 | % | ||
VIE deconsolidation
|
(0.3 | )% | ||
Acquisitions
|
1.5 | % | ||
|
||||
Total Percentage Change in Sales
|
(1.3 | )% | ||
|
28
For the Twenty-Eight Weeks Ended | For the Twenty-Eight Weeks Ended | |||||||||||||||||||
July 17, 2010 | July 18, 2009 | % Increase | ||||||||||||||||||
Sales category | $ | % | $ | % | (Decrease) | |||||||||||||||
(Amounts in | (Amounts in | |||||||||||||||||||
thousands) | thousands) | |||||||||||||||||||
Branded Retail
|
$ | 669,852 | 59.0 | % | $ | 666,349 | 56.7 | % | 0.5 | % | ||||||||||
Store Branded Retail
|
181,003 | 15.9 | 199,597 | 17.0 | (9.3 | )% | ||||||||||||||
Non-retail and Other
|
285,238 | 25.1 | 309,804 | 26.3 | (7.9 | )% | ||||||||||||||
|
||||||||||||||||||||
Total
|
$ | 1,136,093 | 100.0 | % | $ | 1,175,750 | 100.0 | % | (3.4 | )% | ||||||||||
|
Favorable | ||||
Percentage Point Change in Sales Attributed to: | (Unfavorable) | |||
Pricing/Mix
|
(3.0 | )% | ||
Volume
|
0.0 | % | ||
VIE deconsolidation
|
(0.4 | )% | ||
|
||||
Total Percentage Change in Sales
|
(3.4 | )% | ||
|
For the Twenty-Eight Weeks Ended | For the Twenty-Eight Weeks Ended | |||||||||||||||||||
July 17, 2010 | July 18, 2009 | % Increase | ||||||||||||||||||
Sales category | $ | % | $ | % | (Decrease) | |||||||||||||||
(Amounts in | (Amounts in | |||||||||||||||||||
thousands) | thousands) | |||||||||||||||||||
Branded Retail
|
$ | 65,653 | 24.6 | % | $ | 71,404 | 29.1 | % | (8.1 | )% | ||||||||||
Store Branded Retail
|
47,192 | 17.7 | 32,011 | 13.0 | 47.4 | % | ||||||||||||||
Non-retail and Other
|
153,804 | 57.7 | 142,290 | 57.9 | 8.1 | % | ||||||||||||||
|
||||||||||||||||||||
Total
|
$ | 266,649 | 100.0 | % | $ | 245,705 | 100.0 | % | 8.5 | % | ||||||||||
|
Favorable | ||||
Percentage Point Change in Sales Attributed to: | (Unfavorable) | |||
Pricing/Mix
|
(1.8 | )% | ||
Volume
|
1.9 | % | ||
Acquisition
|
8.4 | % | ||
|
||||
Total Percentage Change in Sales
|
8.5 | % | ||
|
29
30
Depreciation and amortization
|
$ | 45,658 | ||
Non cash effect of derivative activity
|
19,293 | |||
Stock-based compensation
|
7,482 | |||
Deferred income taxes
|
(1,523 | ) | ||
Provision for inventory obsolescence
|
589 | |||
Allowances for accounts receivable
|
832 | |||
Pension and postretirement plans expense
|
992 | |||
Other
|
(315 | ) | ||
|
||||
Total
|
$ | 73,008 | ||
|
31
32
33
34
FLOWERS FOODS, INC.
|
||||
By: | /s/ GEORGE E. DEESE | |||
Name: | George E. Deese | |||
Title: |
Chairman of the Board and
Chief Executive Officer |
|||
By: | /s/ R. STEVE KINSEY | |||
Name: | R. Steve Kinsey | |||
Title: |
Executive Vice President and
Chief Financial Officer |
|||
By: | /s/ KARYL H. LAUDER | |||
Name: | Karyl H. Lauder | |||
Title: |
Senior Vice President and
Chief Accounting Officer |
|||
35
Exhibit | ||||||
No | Name of Exhibit | |||||
2.1 | — |
Distribution Agreement by and between Flowers Industries, Inc. and Flowers Foods, Inc., dated as of October 26, 2000 (Incorporated by
reference to Flowers Foods’ Registration Statement on Form 10, dated December 1, 2000, File No. 1-16247).
|
||||
|
||||||
2.2 | — |
Amendment No. 1 to Distribution Agreement, dated as of March 12, 2001, between Flowers Industries, Inc. and Flowers Foods, Inc. (Incorporated
by reference to Flowers Foods’ Annual Report on Form 10-K, dated March 30, 2001, File No. 1-16247).
|
||||
|
||||||
3.1 | — |
Restated Articles of Incorporation of Flowers Foods, Inc. as amended May 30, 2008 (Incorporated by reference to Flowers Foods’ Quarterly
Report on Form 10-Q dated June 4, 2009, File No. 1-16247).
|
||||
|
||||||
3.2 | — |
Amended and Restated Bylaws of Flowers Foods, Inc. as amended and restated on November 14, 2008 (Incorporated by reference to Flowers Foods’
Current Report on Form 8-K dated November 18, 2008, File No. 1-16247).
|
||||
|
||||||
4.1 | — |
Share Certificate of Common Stock of Flowers Foods, Inc. (Incorporated by reference to Flowers Foods’ Annual Report on Form 10-K, dated March
30, 2001, File No. 1-16247).
|
||||
|
||||||
4.2 | — |
Rights Agreement between Flowers Foods, Inc. and First Union National Bank, as Rights Agent, dated March 23, 2001 (Incorporated by reference
to Flowers Foods’ Annual Report on Form 10-K, dated March 30, 2001, File No. 1-16247).
|
||||
|
||||||
4.3 | — |
Amendment No. 1, dated November 15, 2002, to Rights Agreement between Flowers Foods, Inc. and Wachovia Bank, N.A. (as successor in interest to
First Union National Bank), as rights agent, dated March 23, 2001. (Incorporated by reference to Flowers Foods’ Registration Statement on Form
8-A, dated November 18, 2002, File No. 1-16247).
|
||||
|
||||||
10.1 | — |
Flowers Foods, Inc. Retirement Plan No. 1 as amended and restated effective March 26, 2001 (Incorporated by reference to Flowers Foods’ Annual
Report on Form 10-K, dated March 30, 2001, File No. 1-16247).
|
||||
|
||||||
10.2 | — |
Flowers Foods, Inc. 2001 Equity and Performance Incentive Plan, as amended and restated as of April 1, 2009 (Incorporated by reference to
Flowers Foods’ Proxy Statement on Schedule 14A, dated April 24, 2009, File No. 1-16247).
|
||||
|
||||||
10.3 | — |
Flowers Foods, Inc. Stock Appreciation Rights Plan. (Incorporated by reference to Flowers Foods’ Annual Report on Form 10-K, dated March 29,
2002, File No. 1-16247).
|
||||
|
||||||
10.4 | — |
Flowers Foods, Inc. Annual Executive Bonus Plan. (Incorporated by reference to Flowers Foods’ Proxy Statement on Schedule 14A, dated April 24,
2009, File No. 1-16247).
|
||||
|
||||||
10.5 | — |
Flowers Foods, Inc. Supplemental Executive Retirement Plan. (Incorporated by reference to Flowers Foods’ Annual Report on Form 10-K, dated
March 29, 2002, File No. 1-16247).
|
||||
|
||||||
10.6 | — |
Form of Indemnification Agreement, by and between Flowers Foods, Inc., certain executive officers and the directors of Flowers Foods, Inc.
(Incorporated by reference to Flowers Foods’ Annual Report on Form 10-K, dated March 28, 2003, File No. 1-16247).
|
||||
|
||||||
10.7 | — |
Form of Continuation of Employment Agreement, by and between Flowers Foods, Inc. and certain executive officers of Flowers Foods, Inc.
(Incorporated by reference to Flowers Foods’ Annual Report on Form 10-K dated March 4, 2009, File No. 1016247)
|
||||
|
||||||
10.8 | — |
Ninth Amendment dated November 7, 2005 to the Flowers Foods, Inc. Retirement Plan No. 1 as Amended and restated effective as of March 26,
2001. (Incorporated by reference to Flowers Foods’ Quarterly Report on Form 10-Q dated November 17, 2005, File No. 1-16247).
|
36
Exhibit | ||||||
No | Name of Exhibit | |||||
10.9 | — |
Form of Nonqualified Stock Option Agreement, by and between Flowers Foods, Inc. and certain executive officers of Flowers Foods, Inc.
(Incorporated by reference to Flowers Foods’ Annual Report on Form 10-K dated March 1, 2006, File No. 1-16247).
|
||||
|
||||||
10.10 | — |
Form of 2008 Nonqualified Stock Option Agreement, by and between Flowers Foods, Inc. and certain
executive officers of Flowers Foods, Inc. (Incorporated by reference to Flowers Foods’ Annual
Report on Form 10-K dated February 27, 2008, File No. 1-16247).
|
||||
|
||||||
10.11 | — |
First Amendment and Waiver, dated October 5, 2007, among Flowers Foods, Inc., a Georgia
corporation, the lenders party to the Credit Agreement and Deutsche Bank AG New York Branch, as
Administrative Agent. (Incorporated by reference to Flowers Foods’ Current Report on Form 8-K dated
October 11, 2007, File No. 1-16247).
|
||||
|
||||||
10.12 | — |
Agreement and Plan of Merger, dated June 23, 2008, by and among, Flowers Foods, Inc., Peachtree
Acquisition Co., LLC, Holsum Bakery, Inc., Lloyd Edward Eisele, Jr. and The Lloyd Edward Eisele,
Jr. Revocable Trust (Incorporated by reference to Flowers Foods’ Current Report on Form 8-K/A dated
June 25, 2008, File No. 1-16247).
|
||||
|
||||||
10.13 | — |
Credit Agreement, dated as of August 1, 2008, among Flowers Foods, Inc., the Lenders Party thereto
from time to time, Bank of America N.A., Cooperative Centrale Raiffeisen-Boerenleen Bank, B.A.,
“Rabobank International”, New York Branch, and Branch Banking & Trust Company as co-documentation
agents, SunTrust Bank, as syndication agent, and Deutsche Bank AG, New York Branch, as
administrative agent (Incorporated by reference to Flowers Foods’ Current Report on Form 8-K dated
August 6, 2008, File No. 1-16247).
|
||||
|
||||||
10.14 | — |
Form of 2009 Restricted Stock Agreement, by and between Flowers Foods, Inc. and certain executive
officers of Flowers Foods, Inc. (Incorporated by reference to Flowers Foods’ Annual Report on Form
10-K dated March 4, 2009, File No. 1-16247).
|
||||
|
||||||
10.15 | — |
Form of 2009 Nonqualified Stock Option Agreement, by and between Flowers Foods, Inc. and certain
executive officers of Flowers Foods, Inc. (Incorporated by reference to Flowers Foods’ Annual
Report on Form 10-K dated March 4, 2009, File No. 1-16247).
|
||||
|
||||||
10.16 | — |
Form of 2009 Deferred Shares Agreement, by and between Flowers Foods, Inc. and certain members of
the Board of Directors of Flowers Foods, Inc. (Incorporated by reference to Flowers Foods’ Annual
Report on Form 10-K dated March 4, 2009, File No. 1-16247).
|
||||
|
||||||
10.17 | — |
Form of 2010 Restricted Stock Agreement, by and between Flowers Foods, Inc. and certain executive
officers of Flowers Foods, Inc. (Incorporated by reference to Flowers Foods’ Annual Report on Form
10-K dated March 3, 2010, File No. 1-16247).
|
||||
|
||||||
10.18 | — |
Form of 2010 Nonqualified Stock Option Agreement, by and between Flowers Foods, Inc. and certain
executive officers of Flowers Foods, Inc. (Incorporated by reference to Flowers Foods’ Annual
Report on Form 10-K dated March 3, 2010, File No. 1-16247).
|
||||
|
||||||
21 | — |
Subsidiaries of Flowers Foods, Inc. (Incorporated by reference to Flowers Foods’ Annual Report on
Form 10-K dated March 3, 2010, File No. 1-16247).
|
||||
|
||||||
*31.1 | — |
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
||||
|
||||||
*31.2 | — |
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
||||
|
||||||
*31.3 | — |
Certification of Chief Accounting Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
||||
|
||||||
*32 | — |
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, by George E. Deese, Chief Executive Officer, R. Steve Kinsey, Chief
Financial Officer and Karyl H. Lauder, Chief Accounting Officer for the Quarter Ended July 17,
2010.
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*101.CAL | — |
XBRL Taxonomy Extension Calculation Linkbase.
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37
Exhibit | ||||||
No | Name of Exhibit | |||||
*101.DEF | — |
XBRL Taxonomy Extension Definition Linkbase.
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*101.INS | — |
XBRL Instance Document.
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*101.LAB | — |
XBRL Taxonomy Extension Label Linkbase.
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*101.PRE | — |
XBRL Taxonomy Extension Presentation Linkbase.
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*101.SCH | — |
XBRL Taxonomy Extension Schema Linkbase.
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* | Filed herewith |
38
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
---|
DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
---|---|---|---|
Xiaozhi Liu Xiaozhi Liu , age 69, has been a director of Autoliv since November 2011 and is a member of the Leadership Development and Compensation Committee. Dr. Liu has been a member of the board of directors of Johnson Matthey PLC since April 2019. She previously served on the board of directors of Anheuser-Busch InBev SA/NV from April 2019 through April 2023. She also previously served as an independent director of Fuyao Glass Industry Group, a public company listed in Shanghai and Hong Kong, from October 2013 until October 2020. Dr. Liu began her career in the automotive industry in General Motor’s (“GM“) Delphi operations and has since worked in various executive positions in Germany, China, and the U.S., where she rose to the position of Director of Electronics, Controls & Software for GM in Detroit, Chief Engineer and Chief Technology Officer of GM in China and Chairman and Chief Executive Officer of GM Taiwan. Between 2005 and 2006, she was the Chief Executive Officer and Vice Chairman of Fuyao Glass Industry Group Co. Ltd. In 2007, she became the President and Chief Executive Officer of NeoTek China, a supplier of automotive chassis and transmission parts, and served as Chairman of the company’s board of directors from 2008 through 2011. In 2009, she founded, and is the Chief Executive Officer of, her own company, ASL Automobile Science & Technology (Shanghai) Co., Ltd., which introduces and implements globally advanced technologies to Chinese companies. She has a Ph.D. and master’s degree in Chemical Engineering and Electrical Engineering, respectively, from Friedrich-Alexander University in Erlangen- Nuremburg, Germany and a bachelor’s degree in Electrical Engineering from the Jiaotong University in Xian, China. The Board believes that Dr. Liu brings a unique and valuable set of skills to the Board, based on a combination of her global experience in engineering and technology in Asia, North America, and Europe with her extensive management experience in the automotive industry. Dr. Liu’s knowledge and experience supports her re-election to the Board. | |||
As permitted by Item 402(u), we made cost-of-living (COL) adjustments to the compensation of all our employees in jurisdictions other than the jurisdiction in which our CEO resides to identify the median employee and used the same COL adjustment to determine the median employee’s annual total compensation. Because of the geographical distribution of our employee population, we believe that COL adjustments provide a more meaningful comparison of our CEO’s compensation to the actual value of the median employee’s compensation. | |||
Mikael Bratt Mikael Bratt , age 58, has been a director of Autoliv since September 2018 and has served as Autoliv’s President and Chief Executive Officer since June 29, 2018. Mr. Bratt previously served as President, Passive Safety from May 2016 until his promotion. Mr. Bratt is a member of the Board of Directors of Gränges AB, a public Swedish company. Mr. Bratt previously served on the board of directors of Höganäs AB, a private Swedish metal powders company, from September 2020 through April 2023. Prior to joining Autoliv, Mr. Bratt spent approximately 30 years with The Volvo Group, a Swedish multinational automotive manufacturing company, including most recently as EVP Group Trucks Operations, part of the group executive management team since 2008. Prior to this, he served as Chief Financial Officer of the Volvo Group. Mr. Bratt studied business administration at the University of Gothenburg, Sweden. The Board believes Mr. Bratt’s years of experience with Autoliv and the automotive industry, including his current role as President and Chief Executive Officer, and his extensive knowledge of the Company, its operations, business, and industry support his re-election to the Board. | |||
Martin Lundstedt Martin Lundstedt , age 57, has been a director of Autoliv since May 2021 and is a member of the Leadership Development and Compensation Committee. He has served as President of AB Volvo, Chief Executive Officer of the Volvo Group, and a member of the Group Executive Board since October 2015. Before joining Volvo, Mr. Lundstedt held various positions at Scania since 1992, and served as its President and Chief Executive Officer from 2012 to 2015. Mr. Lundstedt is the Chairman of the Board of Permobil Holding AB, a private Swedish company focused on developing advanced medical technology. He also serves as a Board member of Industrikraft I Sverige AB, a private Swedish public policy organization, since 2024. Until 2021, he was a member of the Board of Directors of Concentric AB, a public Swedish company that is a leading global pump manufacturer. In addition to his service on public and private company boards, he is a Member of the Commercial Vehicle Board of the European Automobile Manufacturers’ Association (ACEA), a Member of the Board of Directors of the Confederation of Swedish Enterprise, a Member of the Board of Directors of the International Chamber of Commerce (ICC) Sweden, a Member of the Royal Swedish Academy of Engineering Sciences (IVA), and a Member of the European Round Table of Industry (ERT). He was also Co-Chairman of the UN Secretary- General’s High-Level Advisory Group on Sustainable Transport from 2015-2016. Mr. Lundstedt holds a Master of Science degree from Chalmers University of Technology in Gothenburg, Sweden. The Board believes that Mr. Lundstedt’s deep experience in the automotive industry as well as his experience with companies and institutions around the globe support his re-election to the Board . | |||
Leif Johansson Leif Johansson , age 73, has been a director of Autoliv since February 2016, and is a member of the Leadership Development and Compensation Committee and Chair of the Nominating and Corporate Governance Committee. From 1997 to 2011, Mr. Johansson served as President and Chief Executive Officer of The Volvo Group. Before joining Volvo, Mr. Johansson held various positions at AB Electrolux, and served as its President and Chief Executive Officer from 1994 to 1997. Mr. Johansson previously served as the Chairman of the Board of Astra Zeneca PLC between June 2012 and June 2023, as Chairman of the Board of Telefonaktiebolaget LM Ericsson between 2011 and March 2018, and on the Board of SCA AB, a Swedish public company, from 2010-2016. In addition to his service on public company boards, Mr. Johansson is currently Chairman of AB Aphrae, his family company, Chairman of Ecolean AB (a private Swedish company), a board member of the Knut and Alice Wallenberg Foundation, a board member of Skansen Technologies (a private Swedish Company), and a member of the Royal Swedish Academy of Engineering Science. Mr. Johansson holds a Master of Science in Engineering from Chalmers University of Technology in Gothenburg, Sweden. The Board believes that Mr. Johansson’s extensive executive and directorial experience on several international companies in the automotive, manufacturing and technology industries, combined with the knowledge gained through his service on various industry, economic and advocacy organizations, support his re-election to the Board . | |||
Laurie Brlas Laurie Brlas , 67, joined the Company’s Board on August 1, 2020 and is a member of the Audit and Risk Committee and the Nominating and Corporate Governance Committee. In December 2016, Ms. Brlas retired from Newmont Mining Corporation (“Newmont”), a mining industry leader in value creation and sustainability. Ms. Brlas joined Newmont in 2013 and served as Executive Vice President and Chief Financial Officer until October 2016. From 2006 through 2013, Ms. Brlas held various positions of increasing responsibility with Cliffs Natural Resources, most recently she served as Chief Financial Officer and then as Executive Vice President and President, Global Operations. Prior to that, Ms. Brlas served as Senior Vice President and Chief Financial Officer of STERIS Corporation from 2000 through 2006 and from 1995 through 2000, Ms. Brlas held various positions of increasing responsibility with Office Max, Inc. Most recently Ms. Brlas served as Senior Vice President and Corporate Controller. Ms. Brlas currently serves on the Board of Directors of Albemarle Corporation, a specialty chemical company, and Graphic Packaging Holding Company, a global packaging solutions company. In the prior five years, Ms. Brlas previously served on the Board of Directors of Constellation Energy Corporation, a power generation and customer-facing retail energy business, from January 2022 until January 2025, Perrigo Company PLC, a global healthcare company, from 2003 until May 2019; Calpine Corp., an energy company, from 2016 until 2018; and Exelon Corporation, a Fortune 100 power company, from 2018 until January 2022 when she joined the board of directors of its spinoff, Constellation Energy Corporation. The Board believes Ms. Brlas’ financial expertise and extensive experience with public company management support her re-election to the Board . | |||
Jan Carlson Jan Carlson , age 64, has been a director of Autoliv since May 2007 following his appointment as President and Chief Executive Officer of Autoliv on April 1, 2007 after serving in various executive positions with the company beginning in 1999. He has been Chairman of the Board since May 2014. Mr. Carlson served as President and Chief Executive Officer until resigning upon the completion of the spin-off of Veoneer, Inc. from the Company on June 29, 2018, at which time he became President and Chief Executive Officer of Veoneer, Inc. Since the completion of the spin-off until its sale in April 2022, Mr. Carlson served as Chairman of the Board of Directors of Veoneer, Inc. Mr. Carlson has served as a member of the Board of Telefonaktiebolaget LM Ericsson since February 2017 and its Chairman since April 2023. Mr. Carlson is also a member of the Board of AB Volvo since April 2022. Mr. Carlson served on the board of directors of BorgWarner Inc., a product leader in highly engineered components and systems for vehicle powertrain applications worldwide, from July 2010 until May 2020. In addition, Mr. Carlson served on the board of Trelleborg AB from 2013 through 2017. Prior to joining Autoliv, Mr. Carlson was President of Saab Combitech, a division within the Saab aircraft group specializing in commercializing military technologies. Mr. Carlson has a Master of Science degree in Physics and Electrical Engineering from Linköping University and is an Honorary Doctor at the Technical faculty of Linköping University. The Board believes that Mr. Carlson through his many years of experience with Autoliv, including his former role as President and Chief Executive Officer, and the automotive industry in general brings extensive knowledge of the Company, its operations, business, and industry to the Board, which support his re-election to the Board . | |||
Gustav Lundgren Gustav Lundgren , age 43, has been a director of Autoliv since August 2022 and is a member of the Audit and Risk Committee. Mr. Lundgren is a partner of Cevian Capital which he joined in 2006. He holds a Master of Science in Economics and Business Administration from the Stockholm School of Economics. Because of Mr. Lundgren’s relationship with Cevian, Cevian may be deemed to be an affiliate of the Company. The Board believes that Mr. Lundgren’s financial expertise and exposure to a wide variety of large, global industrial companies through his investment research and management experience support his election to the Board. | |||
Franz-Josef Kortüm Franz-Josef Kortüm , age 74, has been a director of Autoliv since March 2014, the Lead Independent Director between May 2021 and May 2022, and is a member of the Nominating and Corporate Governance Committee. Prior to joining Autoliv, Mr. Kortüm was Chief Executive Officer of Webasto SE, a producer of automobile roof systems and climate control systems for automobiles, boats, and other vehicles, from 1998 to 2012, after joining the company in 1994. Mr. Kortüm was Chief Executive Officer of Audi AG from 1993 to 1994 and, prior to joining Audi, had a 16-year career with what is today Mercedes-Benz Group AG in a variety of positions. In addition to his extensive management experience, Mr. Kortüm is a Member of the Advisory Board of Brose Fahrzeugteile GmbH & Co. KG since April 2005, and he has formerly served as Vice Chairman of the Supervisory Board of Webasto SE since 2013 and as its Chairman since 2018 until August 2020, as a Member of the Supervisory Board of Wacker Chemie AG, a German public company, since 2003 until December 2024, and as a Member of the Supervisory Board of Schaeffler AG from 2010 to March 2014. From 2004 to 2012, Mr. Kortüm was a Member of the Managing Board of the VDA (German Association of the Automotive Industry). Mr. Kortüm has an MBA-equivalent degree in Business Administration from the University of Regensburg in Germany. The Board believes that Mr. Kortüm brings a breadth of knowledge and skills related to the automotive industry to the Board. In addition, his corporate governance experience gained through his service on other boards support his re-election to the Board. | |||
Frédéric Lissalde Frédéric Lissalde , age 57, has been a director of Autoliv since December 2020 and is the Chair of the Leadership Development and Compensation Committee and is a member of the Nominating and Corporate Governance Committee. Mr. Lissalde served as President, Chief Executive Officer, and a member of the board of directors of BorgWarner Inc. from August 2018 through February 2025. He previously served as Executive Vice President and Chief Operating Officer and, before that, President and General Manager of BorgWarner Turbo Systems. Prior to joining BorgWarner, Mr. Lissalde held positions at Valeo and ZF in several functional areas in the United Kingdom, Japan, and France. Mr. Lissalde has served as a member of the Board of Soitec, a semiconductor materials business, since July 2024 and its Chairman since March 2025. Mr. Lissalde holds a Master’s of Engineering degree from ENSAM - Ecole Nationale Supérieure des Arts et Métiers - Paris, and an MBA from HEC Paris. He is also a graduate of executive courses at INSEAD, Harvard, and MIT. The Board believes that Mr. Lissalde’s deep experience in the automotive industry as well as his experience with companies and institutions around the globe support his re-election to the Board. | |||
Adriana Karaboutis Adriana Karaboutis , age 62, has been a director of Autoliv since September 2024. She served as Group Chief Information & Digital Officer at National Grid from 2017 through 2023 and is an Independent Director at Perrigo Co. PLC, Aon PLC, and Savills PLC. Ms. Karaboutis previously served as an Independent Director of Advance Auto Parts, Inc., AspenTech, and Blue Cross & Blue Shield of Massachusetts, Inc. in addition to serving as a Board member of Cylance, a private cybersecurity software firm sold to Blackberry in 2019. Prior to 2017, she served as Executive VP-Technology, Business Solutions, and Corporate Affairs of Biogen, Inc., as Global Chief Information Officer & Vice President of Dell, Inc., Director-Global Manufacturing of Ford Motor Co., and as Executive Director-Global Manufacturing Technology of General Motors Co. Ms. Karaboutis received her B.S. in Computer Science from Wayne State University. The Board believes that Ms. Karaboutis’s extensive executive and directorial experience on several international companies in the automotive, manufacturing, and insurance industries, combined with the knowledge gained through her service on various industry, economic and advocacy organizations, support her election to the Board. |
Change in | ||||||||
Pension Value | ||||||||
and Nonqualified | ||||||||
Non-Equity | Deferred | |||||||
Stock | Incentive Plan | Compensation | All Other | |||||
Name and Principal | Salary | Bonus | Awards | Compensation | Earnings | Compensation | TOTAL | |
Position | Year | $ | $ | $ | $ | $ | $ | ($) |
Mikael
Bratt
President and CEO |
2024 | 1,217,983 | — | 907,275 | 1,036,194 | — | 562,547 | 3,723,999 |
2023 | 1,183,988 | — | 878,778 | 1,073,279 | — | 539,465 | 3,675,510 | |
2022 | 1,078,210 | — | 570,351 | 589,540 | — | 502,471 | 2,740,571 | |
Fredrik
Westin
Executive Vice President and Chief Financial Officer |
2024 | 563,185 | — | 294,838 | 428,020 | — | 227,315 | 1,513,358 |
2023 | 544,140 | — | 278,351 | 446,195 | — | 213,758 | 1,482,444 | |
2022 | 525,739 | — | 203,744 | 222,387 | — | 209,625 | 1,161,495 | |
Magnus
Jarlegren
President, Europe |
2024 | 720,142 | — | 228,187 | 550,908 | — | 229,528 | 1,728,766 |
Kevin
Fox
President, Americas |
2024 | 604,478 | — | 302,215 | 459,403 | — | 109,855 | 1,475,951 |
2023 | 530,244 | — | 204,583 | 434,800 | 75,800 | 102,019 | 1,347,446 | |
2022 | 509,850 | — | 151,061 | 215,667 | — | 95,089 | 971,667 | |
Anthony
Nellis
General Counsel and EVP Legal |
2024 | 635,472 | — | 282,716 | 434,663 | — | 98,829 | 1,451,679 |
2023 | 583,002 | — | 214,557 | 334,643 | 82,900 | 88,966 | 1,304,068 | |
2022 | 560,579 | — | 151,061 | 184,430 | — | 91,986 | 988,056 |
No Customers Found
Price
Yield
Owner | Position | Direct Shares | Indirect Shares |
---|---|---|---|
Carlson Jan | - | 77,493 | 0 |
JOHANSSON LEIF | - | 11,980 | 0 |
Senko Thaddeus | - | 11,364 | 0 |
Nellis Anthony J | - | 7,492 | 0 |
Lombarte Jordi | - | 5,934 | 0 |
Naughton Colin | - | 5,709 | 0 |
Naughton Colin | - | 4,809 | 0 |
Westin Fredrik | - | 4,142 | 0 |
Dumont Fabien | - | 3,135 | 0 |
Fox Kevin | - | 2,657 | 0 |
Hagstrom Mikael | - | 727 | 0 |
ALBUSCHUS PETRA | - | 319 | 0 |