June 30, 2015 | June 30, 2014 | ||||||
Payroll, employee benefits and other administrative accruals | $ | 65,044 | $ | 54,171 | |||
Selling and marketing related accruals | 10,938 | 11,310 | |||||
Contingent consideration, current portion | — | 5,611 | |||||
Other | 3,185 | 13,814 | |||||
$ | 79,167 | $ | 84,906 |
Fiscal Year ended June 30, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Fair value of restricted stock and restricted share units granted | $ | 16,462 | $ | 9,303 | $ | 25,606 | |||||
Fair value of shares vested | $ | 21,481 | $ | 19,905 | $ | 16,547 | |||||
Tax benefit recognized from restricted shares vesting | $ | 8,364 | $ | 7,535 | $ | 6,253 |
Fiscal Year ended June 30, | |||||||
2014 | 2013 | ||||||
Net sales | $ | — | $ | 15,313 | |||
Operating loss | $ | — | $ | (1,176 | ) | ||
Loss on sale of business, net of tax | $ | (1,629 | ) | $ | (4,200 | ) | |
Loss from discontinued operations, net of tax | $ | (1,629 | ) | $ | (5,137 | ) |
Buildings and improvements | 10 - 40 years | |
Machinery and equipment | 3 - 20 years | |
Furniture and fixtures | 3 - 15 years |
Fiscal Year Ended June 30, | |||||||
2014 | 2013 | ||||||
Net sales from continuing operations | $ | 2,310,540 | $ | 1,970,371 | |||
Net income from continuing operations | $ | 151,534 | $ | 139,085 | |||
Net income per common share from continuing operations - diluted | $ | 1.49 | $ | 1.41 |
Fiscal Year ended June 30, | |||||||
2015 | 2014 | ||||||
Net sales from continuing operations | $ | 2,797,368 | $ | 2,558,173 | |||
Net income from continuing operations | $ | 171,130 | $ | 148,215 | |||
Net income per common share from continuing operations - diluted | $ | 1.65 | $ | 1.48 |
HPPC | Belvedere | Empire | Total | ||||||||||||
Carrying value of pre-existing interest, after fair value adjustments: | $ | 36,074 | $ | — | $ | 9,786 | $ | 45,860 | |||||||
Purchase Price: | |||||||||||||||
Cash paid | 20,310 | 13,988 | 57,595 | 91,893 | |||||||||||
Equity issued | 19,690 | — | — | 19,690 | |||||||||||
Fair value of contingent consideration | — | 1,603 | — | 1,603 | |||||||||||
Total investment: | $ | 76,074 | $ | 15,591 | $ | 67,381 | $ | 159,046 | |||||||
Allocation: | |||||||||||||||
Current assets | $ | 52,055 | $ | 10,042 | $ | 19,628 | $ | 81,725 | |||||||
Property, plant and equipment | 21,864 | 2,598 | 13,094 | 37,556 | |||||||||||
Other assets | 7,288 | — | — | 7,288 | |||||||||||
Identifiable intangible assets | 20,700 | 5,698 | 33,890 | 60,288 | |||||||||||
Deferred taxes | 1,388 | (3,890 | ) | (14,443 | ) | (16,945 | ) | ||||||||
Assumed liabilities | (41,705 | ) | (1,784 | ) | (15,632 | ) | (59,121 | ) | |||||||
Goodwill | 14,484 | 2,927 | 30,844 | 48,255 | |||||||||||
$ | 76,074 | $ | 15,591 | $ | 67,381 | $ | 159,046 |
Fiscal Year ended June 30, | |||||||
2015 | 2014 | ||||||
Net sales from continuing operations | $ | 2,797,368 | $ | 2,558,173 | |||
Net income from continuing operations | $ | 171,130 | $ | 148,215 | |||
Net income per common share from continuing operations - diluted | $ | 1.65 | $ | 1.48 |
Tilda | Rudi’s | Total | |||||||||
Purchase price: | |||||||||||
Cash paid | $ | 123,822 | $ | 50,807 | $ | 174,629 | |||||
Equity issued | 148,353 | 11,168 | 159,521 | ||||||||
Vendor Loan Note | 32,958 | — | 32,958 | ||||||||
$ | 305,133 | $ | 61,975 | $ | 367,108 | ||||||
Allocation: | |||||||||||
Current assets | $ | 86,828 | $ | 8,058 | $ | 94,886 | |||||
Property, plant and equipment | 39,806 | 3,774 | 43,580 | ||||||||
Identifiable intangible assets | 124,549 | 27,514 | 152,063 | ||||||||
Assumed liabilities | (93,742 | ) | (6,319 | ) | (100,061 | ) | |||||
Deferred income taxes | (26,230 | ) | 1,932 | (24,298 | ) | ||||||
Goodwill | 173,922 | 27,016 | 200,938 | ||||||||
$ | 305,133 | $ | 61,975 | $ | 367,108 |
Fiscal Year Ended June 30, | |||||||
2014 | 2013 | ||||||
Net sales from continuing operations | $ | 2,310,540 | $ | 1,970,371 | |||
Net income from continuing operations | $ | 151,534 | $ | 139,085 | |||
Net income per common share from continuing operations - diluted | $ | 1.49 | $ | 1.41 |
UK Ambient Grocery Brands | BluePrint | Ella’s Kitchen | Total | ||||||||||||
Purchase price: | |||||||||||||||
Cash paid | $ | 273,246 | $ | 16,679 | $ | 58,437 | $ | 348,362 | |||||||
Equity issued | 48,061 | 9,525 | 45,050 | 102,636 | |||||||||||
Fair value of contingent consideration | — | 13,491 | — | 13,491 | |||||||||||
$ | 321,307 | $ | 39,695 | $ | 103,487 | $ | 464,489 | ||||||||
Allocation: | |||||||||||||||
Current assets | $ | 29,825 | $ | 2,742 | $ | 27,749 | $ | 60,316 | |||||||
Property, plant and equipment | 39,150 | 3,173 | 672 | 42,995 | |||||||||||
Identifiable intangible assets | 118,020 | 18,980 | 49,669 | 186,669 | |||||||||||
Assumed liabilities | (2,693 | ) | (2,189 | ) | (15,064 | ) | (19,946 | ) | |||||||
Deferred income taxes | 2,882 | — | (11,789 | ) | (8,907 | ) | |||||||||
Goodwill | 134,123 | 16,989 | 52,250 | 203,362 | |||||||||||
$ | 321,307 | $ | 39,695 | $ | 103,487 | $ | 464,489 |
Fiscal Year | |||
2016 | $ | 15,695 | |
2017 | 11,921 | ||
2018 | 10,630 | ||
2019 | 9,728 | ||
2020 | 7,440 | ||
Thereafter | 43,437 | ||
$ | 98,851 |
June 30, 2015 | June 30, 2014 | ||||||
Senior Notes | $ | 150,000 | $ | 150,000 | |||
Revolving Credit Agreement borrowings payable to banks | 660,216 | 614,502 | |||||
Tilda short-term borrowing arrangements | 29,600 | 65,975 | |||||
Vendor Loan Note (see note 4) | — | 34,056 | |||||
Other borrowings | 4,067 | 3,390 | |||||
843,883 | 867,923 | ||||||
Short-term borrowings and current portion of long-term debt | 31,275 | 100,096 | |||||
$ | 812,608 | $ | 767,827 |
Due in Fiscal Year | Amount | |||
2016 | $ | 31,275 | ||
2017 | 2,130 | |||
2018 | 197 | |||
2019 | 60 | |||
2020 | 810,221 | |||
$ | 843,883 |
Fiscal Year ended June 30, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Compensation cost (included in selling, general and administrative expense) | $ | 12,197 | $ | 12,448 | $ | 13,010 | |||||
Related income tax benefit | $ | 4,695 | $ | 4,787 | $ | 4,969 |
2015 | Weighted Average Exercise Price | 2014 | Weighted Average Exercise Price | 2013 | Weighted Average Exercise Price | |||||||||||||||
Outstanding at beginning of year | 2,674,290 | $ | 9.83 | 3,557,504 | $ | 9.44 | 5,160,866 | $ | 9.00 | |||||||||||
Exercised | (1,425,378 | ) | $ | 13.08 | (882,614 | ) | $ | 8.30 | (1,590,562 | ) | $ | 8.03 | ||||||||
Canceled and expired | — | $ | — | (600 | ) | $ | 8.01 | (12,800 | ) | $ | 7.44 | |||||||||
Outstanding at end of year | 1,248,912 | $ | 6.12 | 2,674,290 | $ | 9.83 | 3,557,504 | $ | 9.44 | |||||||||||
Options exercisable at end of year | 1,248,912 | $ | 6.12 | 2,674,290 | $ | 9.83 | 3,470,854 | $ | 9.45 |
Fiscal Year ended June 30, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Intrinsic value of options exercised | $ | 62,213 | $ | 29,778 | $ | 39,562 | |||||
Cash received from stock option exercises | $ | 18,643 | $ | 7,320 | $ | 12,763 | |||||
Tax benefit recognized from stock option exercises | $ | 24,213 | $ | 11,584 | $ | 14,468 |
2015 | Weighted Average Grant Date Fair Value (per share) | 2014 | Weighted Average Grant Date Fair Value (per share) | 2013 | Weighted Average Grant Date Fair Value (per share) | |||||||||
Non-vested restricted stock and restricted share units - beginning of year | 1,258,744 | $25.44 | 1,547,136 | $21.22 | 974,818 | $14.97 | ||||||||
Granted | 311,284 | $54.11 | 224,792 | $41.39 | 1,123,064 | $22.80 | ||||||||
Vested | (401,936 | ) | $26.86 | (476,290 | ) | $19.09 | (531,638 | ) | $13.12 | |||||
Forfeited | (23,050 | ) | $40.65 | (36,894 | ) | $28.72 | (19,108 | ) | $19.37 | |||||
Non-vested restricted stock and restricted share units - end of year | 1,145,042 | $32.30 | 1,258,744 | $25.44 | 1,547,136 | $21.22 |
Fiscal Year ended June 30, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Fair value of restricted stock and restricted share units granted | $ | 16,462 | $ | 9,303 | $ | 25,606 | |||||
Fair value of shares vested | $ | 21,481 | $ | 19,905 | $ | 16,547 | |||||
Tax benefit recognized from restricted shares vesting | $ | 8,364 | $ | 7,535 | $ | 6,253 |
Fiscal Year ended June 30, | |||||||
2014 | 2013 | ||||||
Net sales | $ | — | $ | 15,313 | |||
Operating loss | $ | — | $ | (1,176 | ) | ||
Loss on sale of business, net of tax | $ | (1,629 | ) | $ | (4,200 | ) | |
Loss from discontinued operations, net of tax | $ | (1,629 | ) | $ | (5,137 | ) |
Fiscal Year ended June 30, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Numerator: | |||||||||||
Income from continuing operations | $ | 167,896 | $ | 141,480 | $ | 119,793 | |||||
Discontinued operations | — | (1,629 | ) | (5,137 | ) | ||||||
Net income | $ | 167,896 | $ | 139,851 | $ | 114,656 | |||||
Denominator (in thousands): | |||||||||||
Denominator for basic earnings per share - weighted average shares outstanding during the period | 101,703 | 97,750 | 92,352 | ||||||||
Effect of dilutive stock options, unvested restricted stock and unvested restricted share units | 1,718 | 2,256 | 2,792 | ||||||||
Denominator for diluted earnings per share - adjusted weighted average shares and assumed conversions | 103,421 | 100,006 | 95,144 | ||||||||
Basic net income per common share: | |||||||||||
From continuing operations | $ | 1.65 | $ | 1.45 | $ | 1.30 | |||||
From discontinued operations | — | (0.02 | ) | (0.06 | ) | ||||||
Net income per common share - basic | $ | 1.65 | $ | 1.43 | $ | 1.24 | |||||
Diluted net income per common share: | |||||||||||
From continuing operations | $ | 1.62 | $ | 1.42 | $ | 1.26 | |||||
From discontinued operations | — | (0.02 | ) | (0.05 | ) | ||||||
Net income per common share - diluted | $ | 1.62 | $ | 1.40 | $ | 1.21 |
• | Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; |
• | Level 2 – Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; |
• | Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). |
Total | Quoted prices in active markets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 45,101 | $ | 45,101 | $ | — | $ | — | |||||||
Forward foreign currency contracts | 1,590 | — | 1,590 | — | |||||||||||
Available for sale securities | 1,196 | 1,196 | — | — | |||||||||||
$ | 47,887 | $ | 46,297 | $ | 1,590 | $ | — | ||||||||
Liabilities: | |||||||||||||||
Forward foreign currency contracts | $ | 274 | $ | — | $ | 274 | $ | — | |||||||
Contingent consideration, of which $3,789 is noncurrent | 3,789 | — | — | 3,789 | |||||||||||
Total | $ | 4,063 | $ | — | $ | 274 | $ | 3,789 |
Total | Quoted prices in active markets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 31,902 | $ | 31,902 | $ | — | $ | — | |||||||
Forward foreign currency contracts | 391 | — | 391 | — | |||||||||||
Available for sale securities | 5,314 | 5,314 | — | — | |||||||||||
$ | 37,607 | $ | 37,216 | $ | 391 | $ | — | ||||||||
Liabilities: | |||||||||||||||
Forward foreign currency contracts | $ | 1,168 | $ | — | $ | 1,168 | $ | — | |||||||
Contingent consideration, of which $2,669 is noncurrent | 8,280 | — | — | 8,280 | |||||||||||
Total | $ | 9,448 | $ | — | $ | 1,168 | $ | 8,280 |
Fiscal Year ended June 30, | |||||||
2015 | 2014 | ||||||
Balance at beginning of year | $ | 8,280 | $ | 22,814 | |||
Fair value of initial contingent consideration | 1,603 | — | |||||
Contingent consideration adjustments | 280 | (3,026 | ) | ||||
Contingent consideration paid | (5,477 | ) | (11,800 | ) | |||
Translation adjustment | (897 | ) | 292 | ||||
Balance at end of year | $ | 3,789 | $ | 8,280 |
Fiscal Year ended June 30, | |||||||
2015 | 2014 | ||||||
Balance at beginning of year | $ | 8,280 | $ | 22,814 | |||
Fair value of initial contingent consideration | 1,603 | — | |||||
Contingent consideration adjustments | 280 | (3,026 | ) | ||||
Contingent consideration paid | (5,477 | ) | (11,800 | ) | |||
Translation adjustment | (897 | ) | 292 | ||||
Balance at end of year | $ | 3,789 | $ | 8,280 |
Fiscal Year ended June 30, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Amortization of intangible assets | $ | 17,985 | $ | 15,600 | $ | 12,398 |
United States | United Kingdom | Hain Pure Protein | Rest of World | Total | |||||||||||||||
Balance as of June 30, 2013 (a) | $ | 574,558 | $ | 232,849 | $ | — | $ | 68,699 | $ | 876,106 | |||||||||
Acquisition activity | 27,766 | 190,772 | — | 520 | 219,058 | ||||||||||||||
Translation and other adjustments, net | 5,002 | 34,197 | — | 5 | 39,204 | ||||||||||||||
Balance as of June 30, 2014 (a) | 607,326 | 457,818 | — | 69,224 | 1,134,368 | ||||||||||||||
Acquisition activity | 3,792 | (1,395 | ) | 45,328 | 2,927 | 50,652 | |||||||||||||
Translation and other adjustments, net | (3,275 | ) | (36,257 | ) | — | (9,409 | ) | (48,941 | ) | ||||||||||
Balance as of June 30, 2015 (a) | $ | 607,843 | $ | 420,166 | $ | 45,328 | $ | 62,742 | $ | 1,136,079 |
June 30, 2015 | June 30, 2014 | ||||||
Non-amortized intangible assets: | |||||||
Trademarks and tradenames | $ | 507,853 | $ | 498,068 | |||
Amortized intangible assets: | |||||||
Other intangibles | 207,609 | 206,071 | |||||
Less: accumulated amortization | (67,708 | ) | (52,657 | ) | |||
Net carrying amount | $ | 647,754 | $ | 651,482 |
Fiscal Year ended June 30, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Amortization of intangible assets | $ | 17,985 | $ | 15,600 | $ | 12,398 |
Fiscal Year ended June 30, | |||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||
Estimated amortization expense | $ | 17,017 | $ | 16,613 | $ | 16,522 | $ | 13,967 | $ | 13,592 |
Fiscal Year ended June 30, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Domestic | $ | 176,898 | $ | 157,492 | $ | 130,908 | |||||
Foreign | 38,392 | 50,102 | 22,914 | ||||||||
Total | $ | 215,290 | $ | 207,594 | $ | 153,822 |
Fiscal Year ended June 30, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Current: | |||||||||||
Federal | $ | 41,268 | $ | 46,722 | $ | 31,370 | |||||
State and local | 8,237 | 7,891 | 3,792 | ||||||||
Foreign | 9,981 | 16,836 | 6,565 | ||||||||
59,486 | 71,449 | 41,727 | |||||||||
Deferred: | |||||||||||
Federal | (10,191 | ) | 2,287 | (4,064 | ) | ||||||
State and local | (932 | ) | 372 | (405 | ) | ||||||
Foreign | (480 | ) | (4,009 | ) | (2,934 | ) | |||||
(11,603 | ) | (1,350 | ) | (7,403 | ) | ||||||
Total | $ | 47,883 | $ | 70,099 | $ | 34,324 |
2015 | % | 2014 | % | 2013 | % | |||||||||||||||
Expected U.S. federal income tax at statutory rate | $ | 75,352 | 35.0 | % | $ | 72,659 | 35.0 | % | $ | 53,838 | 35.0 | % | ||||||||
State income taxes, net of federal benefit | 4,834 | 2.2 | % | 5,371 | 2.6 | % | 3,278 | 2.1 | % | |||||||||||
Domestic manufacturing deduction | (1,210 | ) | (0.6 | )% | (2,482 | ) | (1.2 | )% | (2,563 | ) | (1.7 | )% | ||||||||
Foreign income at different rates | (9,105 | ) | (4.2 | )% | (4,842 | ) | (2.3 | )% | (4,950 | ) | (3.2 | )% | ||||||||
Corporate tax reorganization | (20,670 | ) | (9.6 | )% | — | — | % | — | — | % | ||||||||||
Non-taxable gains on acquisition of pre-existing ownership interests in HPPC and Empire | (2,890 | ) | (1.3 | )% | — | — | % | — | — | % | ||||||||||
Worthless stock deduction | — | — | % | — | — | % | (13,186 | ) | (8.6 | )% | ||||||||||
Reduction of deferred tax liabilities resulting from change in United Kingdom tax rate | — | — | % | (3,739 | ) | (1.8 | )% | (2,288 | ) | (1.4 | )% | |||||||||
Other | 1,572 | 0.7 | % | 3,132 | 1.5 | % | 195 | 0.1 | % | |||||||||||
Provision for income taxes | $ | 47,883 | 22.2 | % | $ | 70,099 | 33.8 | % | $ | 34,324 | 22.3 | % |
June 30, 2015 | June 30, 2014 | ||||||
Current deferred tax assets: | |||||||
Basis difference on inventory | $ | 8,106 | $ | 5,995 | |||
Reserves not currently deductible | 12,334 | 17,365 | |||||
Other | 318 | 420 | |||||
Current deferred tax assets | 20,758 | 23,780 | |||||
Noncurrent deferred tax assets/(liabilities): | |||||||
Basis difference on intangible assets | (155,049 | ) | (143,478 | ) | |||
Basis difference on property and equipment | (21,067 | ) | (17,782 | ) | |||
Other comprehensive income | (1,217 | ) | (7,969 | ) | |||
Net operating loss and tax credit carryforwards | 31,996 | 24,067 | |||||
Stock based compensation | 6,828 | 6,526 | |||||
Other | 2,267 | 27 | |||||
Valuation allowances | (9,055 | ) | (9,830 | ) | |||
Noncurrent deferred tax liabilities, net | (145,297 | ) | (148,439 | ) | |||
Total net deferred tax liabilities | $ | (124,539 | ) | $ | (124,659 | ) |
Fiscal Year ended June 30, | |||||||
2015 | 2014 | ||||||
Balance at beginning of year | $ | 9,830 | $ | 10,456 | |||
Additions charged to income tax expense | 214 | 2,226 | |||||
Reductions credited to income tax expense | — | (760 | ) | ||||
Net change from liquidations, tax rate changes and other | — | (3,036 | ) | ||||
Currency translation adjustments | (989 | ) | 944 | ||||
Balance at end of year | $ | 9,055 | $ | 9,830 |
Fiscal Year ended June 30, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Balance at beginning of year | $ | 2,351 | $ | 2,507 | $ | 1,337 | |||||
Additions based on tax positions related to the current year | 722 | 750 | 574 | ||||||||
Additions for acquired companies | — | — | 941 | ||||||||
Reductions due to lapse in statute of limitations and settlements | (753 | ) | (906 | ) | (345 | ) | |||||
Balance at end of year | $ | 2,320 | $ | 2,351 | $ | 2,507 |
June 30, 2015 | June 30, 2014 | ||||||
Non-amortized intangible assets: | |||||||
Trademarks and tradenames | $ | 507,853 | $ | 498,068 | |||
Amortized intangible assets: | |||||||
Other intangibles | 207,609 | 206,071 | |||||
Less: accumulated amortization | (67,708 | ) | (52,657 | ) | |||
Net carrying amount | $ | 647,754 | $ | 651,482 |
June 30, 2015 | June 30, 2014 | ||||||
Finished goods | $ | 240,004 | $ | 190,818 | |||
Raw materials, work-in-progress and packaging | 142,207 | 129,433 | |||||
$ | 382,211 | $ | 320,251 |
June 30, 2015 | June 30, 2014 | ||||||
Land | $ | 36,386 | $ | 34,021 | |||
Buildings and improvements | 88,507 | 75,895 | |||||
Machinery and equipment | 359,183 | 329,680 | |||||
Furniture and fixtures | 10,272 | 10,352 | |||||
Leasehold improvements | 19,257 | 21,836 | |||||
Construction in progress | 11,444 | 4,850 | |||||
525,049 | 476,634 | ||||||
Less: Accumulated depreciation and amortization | 180,787 | 165,973 | |||||
$ | 344,262 | $ | 310,661 |
Buildings and improvements | 10 - 40 years | |
Machinery and equipment | 3 - 20 years | |
Furniture and fixtures | 3 - 15 years |
Buildings and improvements | 10 - 40 years | |
Machinery and equipment | 3 - 20 years | |
Furniture and fixtures | 3 - 15 years |
June 30, 2015 | June 30, 2014 | ||||||
Land | $ | 36,386 | $ | 34,021 | |||
Buildings and improvements | 88,507 | 75,895 | |||||
Machinery and equipment | 359,183 | 329,680 | |||||
Furniture and fixtures | 10,272 | 10,352 | |||||
Leasehold improvements | 19,257 | 21,836 | |||||
Construction in progress | 11,444 | 4,850 | |||||
525,049 | 476,634 | ||||||
Less: Accumulated depreciation and amortization | 180,787 | 165,973 | |||||
$ | 344,262 | $ | 310,661 |
June 30, 2015 | June 30, 2014 | ||||||
Payroll, employee benefits and other administrative accruals | $ | 65,044 | $ | 54,171 | |||
Selling and marketing related accruals | 10,938 | 11,310 | |||||
Contingent consideration, current portion | — | 5,611 | |||||
Other | 3,185 | 13,814 | |||||
$ | 79,167 | $ | 84,906 |
Fiscal Year ended June 30, | |||||||
2015 | 2014 | ||||||
Foreign currency translation adjustments: | |||||||
Other comprehensive income (loss) before reclassifications (1) | $ | (103,209 | ) | $ | 90,625 | ||
Amounts reclassified into income | — | — | |||||
Deferred gains/(losses) on cash flow hedging instruments: | |||||||
Other comprehensive income (loss) before reclassifications | 5,449 | (1,214 | ) | ||||
Amounts reclassified into income (2) | (3,868 | ) | (190 | ) | |||
Unrealized gain on available for sale investment: | |||||||
Other comprehensive income (loss) before reclassifications | (595 | ) | (1,121 | ) | |||
Amounts reclassified into income (3) | (311 | ) | (721 | ) | |||
Net change in accumulated other comprehensive income (loss) | $ | (102,534 | ) | $ | 87,379 |
(1) | Foreign currency translation adjustments include intra-entity foreign currency transactions that are of a long-term investment nature of $40,017 and $21,862 for fiscal years ended June 30, 2015 and 2014, respectively. |
(2) | Amounts reclassified into income for deferred gains on cash flow hedging instruments are recorded in “Cost of sales” in the Consolidated Statements of Income and, before taxes, were $5,087 and $284 for the fiscal years ended June 30, 2015 and 2014, respectively. |
(3) | Amounts reclassified into income for gains on sale of available for sale investments were based on the average cost of the shares held (See Note 14). Such amounts are recorded in “Interest and other expenses, net” in the Consolidated Statements of Income. There was no tax expense associated with these gains reclassified into income as the Company utilized capital losses to offset these gains. |
Tilda | Rudi’s | Total | |||||||||
Purchase price: | |||||||||||
Cash paid | $ | 123,822 | $ | 50,807 | $ | 174,629 | |||||
Equity issued | 148,353 | 11,168 | 159,521 | ||||||||
Vendor Loan Note | 32,958 | — | 32,958 | ||||||||
$ | 305,133 | $ | 61,975 | $ | 367,108 | ||||||
Allocation: | |||||||||||
Current assets | $ | 86,828 | $ | 8,058 | $ | 94,886 | |||||
Property, plant and equipment | 39,806 | 3,774 | 43,580 | ||||||||
Identifiable intangible assets | 124,549 | 27,514 | 152,063 | ||||||||
Assumed liabilities | (93,742 | ) | (6,319 | ) | (100,061 | ) | |||||
Deferred income taxes | (26,230 | ) | 1,932 | (24,298 | ) | ||||||
Goodwill | 173,922 | 27,016 | 200,938 | ||||||||
$ | 305,133 | $ | 61,975 | $ | 367,108 |
HPPC | Belvedere | Empire | Total | ||||||||||||
Carrying value of pre-existing interest, after fair value adjustments: | $ | 36,074 | $ | — | $ | 9,786 | $ | 45,860 | |||||||
Purchase Price: | |||||||||||||||
Cash paid | 20,310 | 13,988 | 57,595 | 91,893 | |||||||||||
Equity issued | 19,690 | — | — | 19,690 | |||||||||||
Fair value of contingent consideration | — | 1,603 | — | 1,603 | |||||||||||
Total investment: | $ | 76,074 | $ | 15,591 | $ | 67,381 | $ | 159,046 | |||||||
Allocation: | |||||||||||||||
Current assets | $ | 52,055 | $ | 10,042 | $ | 19,628 | $ | 81,725 | |||||||
Property, plant and equipment | 21,864 | 2,598 | 13,094 | 37,556 | |||||||||||
Other assets | 7,288 | — | — | 7,288 | |||||||||||
Identifiable intangible assets | 20,700 | 5,698 | 33,890 | 60,288 | |||||||||||
Deferred taxes | 1,388 | (3,890 | ) | (14,443 | ) | (16,945 | ) | ||||||||
Assumed liabilities | (41,705 | ) | (1,784 | ) | (15,632 | ) | (59,121 | ) | |||||||
Goodwill | 14,484 | 2,927 | 30,844 | 48,255 | |||||||||||
$ | 76,074 | $ | 15,591 | $ | 67,381 | $ | 159,046 |
Fiscal Year ended June 30, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Intrinsic value of options exercised | $ | 62,213 | $ | 29,778 | $ | 39,562 | |||||
Cash received from stock option exercises | $ | 18,643 | $ | 7,320 | $ | 12,763 | |||||
Tax benefit recognized from stock option exercises | $ | 24,213 | $ | 11,584 | $ | 14,468 |
Fiscal Year ended June 30, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Compensation cost (included in selling, general and administrative expense) | $ | 12,197 | $ | 12,448 | $ | 13,010 | |||||
Related income tax benefit | $ | 4,695 | $ | 4,787 | $ | 4,969 |
Fiscal Year ended June 30, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Current: | |||||||||||
Federal | $ | 41,268 | $ | 46,722 | $ | 31,370 | |||||
State and local | 8,237 | 7,891 | 3,792 | ||||||||
Foreign | 9,981 | 16,836 | 6,565 | ||||||||
59,486 | 71,449 | 41,727 | |||||||||
Deferred: | |||||||||||
Federal | (10,191 | ) | 2,287 | (4,064 | ) | ||||||
State and local | (932 | ) | 372 | (405 | ) | ||||||
Foreign | (480 | ) | (4,009 | ) | (2,934 | ) | |||||
(11,603 | ) | (1,350 | ) | (7,403 | ) | ||||||
Total | $ | 47,883 | $ | 70,099 | $ | 34,324 |
June 30, 2015 | June 30, 2014 | ||||||
Senior Notes | $ | 150,000 | $ | 150,000 | |||
Revolving Credit Agreement borrowings payable to banks | 660,216 | 614,502 | |||||
Tilda short-term borrowing arrangements | 29,600 | 65,975 | |||||
Vendor Loan Note (see note 4) | — | 34,056 | |||||
Other borrowings | 4,067 | 3,390 | |||||
843,883 | 867,923 | ||||||
Short-term borrowings and current portion of long-term debt | 31,275 | 100,096 | |||||
$ | 812,608 | $ | 767,827 |
June 30, 2015 | June 30, 2014 | ||||||
Current deferred tax assets: | |||||||
Basis difference on inventory | $ | 8,106 | $ | 5,995 | |||
Reserves not currently deductible | 12,334 | 17,365 | |||||
Other | 318 | 420 | |||||
Current deferred tax assets | 20,758 | 23,780 | |||||
Noncurrent deferred tax assets/(liabilities): | |||||||
Basis difference on intangible assets | (155,049 | ) | (143,478 | ) | |||
Basis difference on property and equipment | (21,067 | ) | (17,782 | ) | |||
Other comprehensive income | (1,217 | ) | (7,969 | ) | |||
Net operating loss and tax credit carryforwards | 31,996 | 24,067 | |||||
Stock based compensation | 6,828 | 6,526 | |||||
Other | 2,267 | 27 | |||||
Valuation allowances | (9,055 | ) | (9,830 | ) | |||
Noncurrent deferred tax liabilities, net | (145,297 | ) | (148,439 | ) | |||
Total net deferred tax liabilities | $ | (124,539 | ) | $ | (124,659 | ) |
Fiscal Year ended June 30, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Numerator: | |||||||||||
Income from continuing operations | $ | 167,896 | $ | 141,480 | $ | 119,793 | |||||
Discontinued operations | — | (1,629 | ) | (5,137 | ) | ||||||
Net income | $ | 167,896 | $ | 139,851 | $ | 114,656 | |||||
Denominator (in thousands): | |||||||||||
Denominator for basic earnings per share - weighted average shares outstanding during the period | 101,703 | 97,750 | 92,352 | ||||||||
Effect of dilutive stock options, unvested restricted stock and unvested restricted share units | 1,718 | 2,256 | 2,792 | ||||||||
Denominator for diluted earnings per share - adjusted weighted average shares and assumed conversions | 103,421 | 100,006 | 95,144 | ||||||||
Basic net income per common share: | |||||||||||
From continuing operations | $ | 1.65 | $ | 1.45 | $ | 1.30 | |||||
From discontinued operations | — | (0.02 | ) | (0.06 | ) | ||||||
Net income per common share - basic | $ | 1.65 | $ | 1.43 | $ | 1.24 | |||||
Diluted net income per common share: | |||||||||||
From continuing operations | $ | 1.62 | $ | 1.42 | $ | 1.26 | |||||
From discontinued operations | — | (0.02 | ) | (0.05 | ) | ||||||
Net income per common share - diluted | $ | 1.62 | $ | 1.40 | $ | 1.21 |
2015 | % | 2014 | % | 2013 | % | |||||||||||||||
Expected U.S. federal income tax at statutory rate | $ | 75,352 | 35.0 | % | $ | 72,659 | 35.0 | % | $ | 53,838 | 35.0 | % | ||||||||
State income taxes, net of federal benefit | 4,834 | 2.2 | % | 5,371 | 2.6 | % | 3,278 | 2.1 | % | |||||||||||
Domestic manufacturing deduction | (1,210 | ) | (0.6 | )% | (2,482 | ) | (1.2 | )% | (2,563 | ) | (1.7 | )% | ||||||||
Foreign income at different rates | (9,105 | ) | (4.2 | )% | (4,842 | ) | (2.3 | )% | (4,950 | ) | (3.2 | )% | ||||||||
Corporate tax reorganization | (20,670 | ) | (9.6 | )% | — | — | % | — | — | % | ||||||||||
Non-taxable gains on acquisition of pre-existing ownership interests in HPPC and Empire | (2,890 | ) | (1.3 | )% | — | — | % | — | — | % | ||||||||||
Worthless stock deduction | — | — | % | — | — | % | (13,186 | ) | (8.6 | )% | ||||||||||
Reduction of deferred tax liabilities resulting from change in United Kingdom tax rate | — | — | % | (3,739 | ) | (1.8 | )% | (2,288 | ) | (1.4 | )% | |||||||||
Other | 1,572 | 0.7 | % | 3,132 | 1.5 | % | 195 | 0.1 | % | |||||||||||
Provision for income taxes | $ | 47,883 | 22.2 | % | $ | 70,099 | 33.8 | % | $ | 34,324 | 22.3 | % |
June 30, 2015 | June 30, 2014 | ||||||
United States | $ | 151,450 | $ | 139,919 | |||
Canada | 11,386 | 9,694 | |||||
United Kingdom | 195,131 | 198,505 | |||||
Europe | 22,451 | 27,746 | |||||
$ | 380,418 | $ | 375,864 |
Fiscal Year ended June 30, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Grocery | $ | 1,765,540 | $ | 1,669,208 | $ | 1,286,377 | |||||
Protein | 358,582 | — | — | ||||||||
Snacks | 302,093 | 249,033 | 220,452 | ||||||||
Tea | 120,707 | 115,593 | 110,819 | ||||||||
Personal Care | 141,593 | 119,777 | 117,035 | ||||||||
Total | $ | 2,688,515 | $ | 2,153,611 | $ | 1,734,683 |
Total | Quoted prices in active markets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 45,101 | $ | 45,101 | $ | — | $ | — | |||||||
Forward foreign currency contracts | 1,590 | — | 1,590 | — | |||||||||||
Available for sale securities | 1,196 | 1,196 | — | — | |||||||||||
$ | 47,887 | $ | 46,297 | $ | 1,590 | $ | — | ||||||||
Liabilities: | |||||||||||||||
Forward foreign currency contracts | $ | 274 | $ | — | $ | 274 | $ | — | |||||||
Contingent consideration, of which $3,789 is noncurrent | 3,789 | — | — | 3,789 | |||||||||||
Total | $ | 4,063 | $ | — | $ | 274 | $ | 3,789 |
Total | Quoted prices in active markets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 31,902 | $ | 31,902 | $ | — | $ | — | |||||||
Forward foreign currency contracts | 391 | — | 391 | — | |||||||||||
Available for sale securities | 5,314 | 5,314 | — | — | |||||||||||
$ | 37,607 | $ | 37,216 | $ | 391 | $ | — | ||||||||
Liabilities: | |||||||||||||||
Forward foreign currency contracts | $ | 1,168 | $ | — | $ | 1,168 | $ | — | |||||||
Contingent consideration, of which $2,669 is noncurrent | 8,280 | — | — | 8,280 | |||||||||||
Total | $ | 9,448 | $ | — | $ | 1,168 | $ | 8,280 |
Fiscal Year | |||
2016 | $ | 15,695 | |
2017 | 11,921 | ||
2018 | 10,630 | ||
2019 | 9,728 | ||
2020 | 7,440 | ||
Thereafter | 43,437 | ||
$ | 98,851 |
United States | United Kingdom | Hain Pure Protein | Rest of World | Total | |||||||||||||||
Balance as of June 30, 2013 (a) | $ | 574,558 | $ | 232,849 | $ | — | $ | 68,699 | $ | 876,106 | |||||||||
Acquisition activity | 27,766 | 190,772 | — | 520 | 219,058 | ||||||||||||||
Translation and other adjustments, net | 5,002 | 34,197 | — | 5 | 39,204 | ||||||||||||||
Balance as of June 30, 2014 (a) | 607,326 | 457,818 | — | 69,224 | 1,134,368 | ||||||||||||||
Acquisition activity | 3,792 | (1,395 | ) | 45,328 | 2,927 | 50,652 | |||||||||||||
Translation and other adjustments, net | (3,275 | ) | (36,257 | ) | — | (9,409 | ) | (48,941 | ) | ||||||||||
Balance as of June 30, 2015 (a) | $ | 607,843 | $ | 420,166 | $ | 45,328 | $ | 62,742 | $ | 1,136,079 |
Fiscal Year ended June 30, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Domestic | $ | 176,898 | $ | 157,492 | $ | 130,908 | |||||
Foreign | 38,392 | 50,102 | 22,914 | ||||||||
Total | $ | 215,290 | $ | 207,594 | $ | 153,822 |
June 30, 2015 | June 30, 2014 | ||||||
Finished goods | $ | 240,004 | $ | 190,818 | |||
Raw materials, work-in-progress and packaging | 142,207 | 129,433 | |||||
$ | 382,211 | $ | 320,251 |
Due in Fiscal Year | Amount | |||
2016 | $ | 31,275 | ||
2017 | 2,130 | |||
2018 | 197 | |||
2019 | 60 | |||
2020 | 810,221 | |||
$ | 843,883 |
Fiscal Years ended June 30, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Net Sales: (1) | |||||||||||
United States | $ | 1,367,388 | $ | 1,282,175 | $ | 1,095,867 | |||||
United Kingdom | 735,996 | 637,454 | 420,408 | ||||||||
Hain Pure Protein | 358,582 | — | — | ||||||||
Rest of World | 226,549 | 233,982 | 218,408 | ||||||||
$ | 2,688,515 | $ | 2,153,611 | $ | 1,734,683 | ||||||
Operating Income: | |||||||||||
United States | $ | 199,901 | $ | 205,864 | $ | 177,352 | |||||
United Kingdom | 46,222 | 52,661 | 31,069 | ||||||||
Hain Pure Protein | 26,479 | — | — | ||||||||
Rest of World | 16,438 | 16,931 | 18,671 | ||||||||
$ | 289,040 | $ | 275,456 | $ | 227,092 | ||||||
Corporate and other (2) | (51,295 | ) | (47,719 | ) | (52,780 | ) | |||||
$ | 237,745 | $ | 227,737 | $ | 174,312 |
(1) | One of our customers accounted for approximately 12%, 13%, and 15% of our consolidated net sales for the fiscal years ended June 30, 2015, 2014 and 2013, respectively, which were primarily related to the United States segment. A second customer accounted for approximately 10%, 11% and 10% of our consolidated net sales for the fiscal years ended June 30, 2015, 2014 and 2013, which were primarily related to the United States and United Kingdom segments. |
(2) | Includes $8,471, $10,076 and $16,634 of acquisition related expenses, restructuring and integration charges for the fiscal years ended June 30, 2015, 2014 and 2013, respectively. Corporate and other also includes expense of $280 for the fiscal year ended June 30, 2015, a net reduction of expense of $3,616 for the fiscal year ended June 30, 2014, and expense of $2,336 for the fiscal year ended June 30, 2013, related to adjustments of the carrying value of contingent consideration. Additionally, a non-cash impairment charge of $5,510 for the fiscal year ended June 30, 2015 related to a United Kingdom indefinite-lived intangible asset is also included in Corporate and other. |
2015 | Weighted Average Exercise Price | 2014 | Weighted Average Exercise Price | 2013 | Weighted Average Exercise Price | |||||||||||||||
Outstanding at beginning of year | 2,674,290 | $ | 9.83 | 3,557,504 | $ | 9.44 | 5,160,866 | $ | 9.00 | |||||||||||
Exercised | (1,425,378 | ) | $ | 13.08 | (882,614 | ) | $ | 8.30 | (1,590,562 | ) | $ | 8.03 | ||||||||
Canceled and expired | — | $ | — | (600 | ) | $ | 8.01 | (12,800 | ) | $ | 7.44 | |||||||||
Outstanding at end of year | 1,248,912 | $ | 6.12 | 2,674,290 | $ | 9.83 | 3,557,504 | $ | 9.44 | |||||||||||
Options exercisable at end of year | 1,248,912 | $ | 6.12 | 2,674,290 | $ | 9.83 | 3,470,854 | $ | 9.45 |
2015 | Weighted Average Grant Date Fair Value (per share) | 2014 | Weighted Average Grant Date Fair Value (per share) | 2013 | Weighted Average Grant Date Fair Value (per share) | |||||||||
Non-vested restricted stock and restricted share units - beginning of year | 1,258,744 | $25.44 | 1,547,136 | $21.22 | 974,818 | $14.97 | ||||||||
Granted | 311,284 | $54.11 | 224,792 | $41.39 | 1,123,064 | $22.80 | ||||||||
Vested | (401,936 | ) | $26.86 | (476,290 | ) | $19.09 | (531,638 | ) | $13.12 | |||||
Forfeited | (23,050 | ) | $40.65 | (36,894 | ) | $28.72 | (19,108 | ) | $19.37 | |||||
Non-vested restricted stock and restricted share units - end of year | 1,145,042 | $32.30 | 1,258,744 | $25.44 | 1,547,136 | $21.22 |
Fiscal Year ended June 30, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Balance at beginning of year | $ | 2,351 | $ | 2,507 | $ | 1,337 | |||||
Additions based on tax positions related to the current year | 722 | 750 | 574 | ||||||||
Additions for acquired companies | — | — | 941 | ||||||||
Reductions due to lapse in statute of limitations and settlements | (753 | ) | (906 | ) | (345 | ) | |||||
Balance at end of year | $ | 2,320 | $ | 2,351 | $ | 2,507 |
Column A | Column B | Column C | Column D | Column E | ||||||||||||||||
Additions | ||||||||||||||||||||
Balance at beginning of period | Charged to costs and expenses | Charged to other accounts - describe (i) | Deductions - describe (ii) | Balance at end of period | ||||||||||||||||
Fiscal Year Ended June 30, 2015: | ||||||||||||||||||||
Allowance for doubtful accounts | $ | 1,586 | $ | 791 | $ | 20 | $ | (1,501 | ) | $ | 896 | |||||||||
Valuation allowance for deferred tax assets | $ | 9,830 | $ | 214 | $ | — | $ | (989 | ) | $ | 9,055 | |||||||||
Fiscal Year Ended June 30, 2014: | ||||||||||||||||||||
Allowance for doubtful accounts | $ | 2,564 | $ | 51 | $ | 330 | $ | (1,359 | ) | $ | 1,586 | |||||||||
Valuation allowance for deferred tax assets | $ | 10,456 | $ | 1,466 | $ | — | $ | (2,092 | ) | $ | 9,830 | |||||||||
Fiscal Year Ended June 30, 2013: | ||||||||||||||||||||
Allowance for doubtful accounts | $ | 2,661 | $ | 67 | $ | — | $ | (164 | ) | $ | 2,564 | |||||||||
Valuation allowance for deferred tax assets | $ | 11,183 | $ | (1,160 | ) | $ | — | $ | 433 | $ | 10,456 |
(i) | Represents the allowance for doubtful accounts of the business acquired during the fiscal year |
(ii) | Amounts written off and changes in exchange rates |
Fiscal Year ended June 30, | |||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||
Estimated amortization expense | $ | 17,017 | $ | 16,613 | $ | 16,522 | $ | 13,967 | $ | 13,592 |
Fiscal Years ended June 30, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Net Sales: (1) | |||||||||||
United States | $ | 1,367,388 | $ | 1,282,175 | $ | 1,095,867 | |||||
United Kingdom | 735,996 | 637,454 | 420,408 | ||||||||
Hain Pure Protein | 358,582 | — | — | ||||||||
Rest of World | 226,549 | 233,982 | 218,408 | ||||||||
$ | 2,688,515 | $ | 2,153,611 | $ | 1,734,683 | ||||||
Operating Income: | |||||||||||
United States | $ | 199,901 | $ | 205,864 | $ | 177,352 | |||||
United Kingdom | 46,222 | 52,661 | 31,069 | ||||||||
Hain Pure Protein | 26,479 | — | — | ||||||||
Rest of World | 16,438 | 16,931 | 18,671 | ||||||||
$ | 289,040 | $ | 275,456 | $ | 227,092 | ||||||
Corporate and other (2) | (51,295 | ) | (47,719 | ) | (52,780 | ) | |||||
$ | 237,745 | $ | 227,737 | $ | 174,312 |
(1) | One of our customers accounted for approximately 12%, 13%, and 15% of our consolidated net sales for the fiscal years ended June 30, 2015, 2014 and 2013, respectively, which were primarily related to the United States segment. A second customer accounted for approximately 10%, 11% and 10% of our consolidated net sales for the fiscal years ended June 30, 2015, 2014 and 2013, which were primarily related to the United States and United Kingdom segments. |
(2) | Includes $8,471, $10,076 and $16,634 of acquisition related expenses, restructuring and integration charges for the fiscal years ended June 30, 2015, 2014 and 2013, respectively. Corporate and other also includes expense of $280 for the fiscal year ended June 30, 2015, a net reduction of expense of $3,616 for the fiscal year ended June 30, 2014, and expense of $2,336 for the fiscal year ended June 30, 2013, related to adjustments of the carrying value of contingent consideration. Additionally, a non-cash impairment charge of $5,510 for the fiscal year ended June 30, 2015 related to a United Kingdom indefinite-lived intangible asset is also included in Corporate and other. |
Fiscal Year ended June 30, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Grocery | $ | 1,765,540 | $ | 1,669,208 | $ | 1,286,377 | |||||
Protein | 358,582 | — | — | ||||||||
Snacks | 302,093 | 249,033 | 220,452 | ||||||||
Tea | 120,707 | 115,593 | 110,819 | ||||||||
Personal Care | 141,593 | 119,777 | 117,035 | ||||||||
Total | $ | 2,688,515 | $ | 2,153,611 | $ | 1,734,683 |
June 30, 2015 | June 30, 2014 | ||||||
United States | $ | 151,450 | $ | 139,919 | |||
Canada | 11,386 | 9,694 | |||||
United Kingdom | 195,131 | 198,505 | |||||
Europe | 22,451 | 27,746 | |||||
$ | 380,418 | $ | 375,864 |
Fiscal Year ended June 30, | |||||||
2015 | 2014 | ||||||
Foreign currency translation adjustments: | |||||||
Other comprehensive income (loss) before reclassifications (1) | $ | (103,209 | ) | $ | 90,625 | ||
Amounts reclassified into income | — | — | |||||
Deferred gains/(losses) on cash flow hedging instruments: | |||||||
Other comprehensive income (loss) before reclassifications | 5,449 | (1,214 | ) | ||||
Amounts reclassified into income (2) | (3,868 | ) | (190 | ) | |||
Unrealized gain on available for sale investment: | |||||||
Other comprehensive income (loss) before reclassifications | (595 | ) | (1,121 | ) | |||
Amounts reclassified into income (3) | (311 | ) | (721 | ) | |||
Net change in accumulated other comprehensive income (loss) | $ | (102,534 | ) | $ | 87,379 |
(1) | Foreign currency translation adjustments include intra-entity foreign currency transactions that are of a long-term investment nature of $40,017 and $21,862 for fiscal years ended June 30, 2015 and 2014, respectively. |
(2) | Amounts reclassified into income for deferred gains on cash flow hedging instruments are recorded in “Cost of sales” in the Consolidated Statements of Income and, before taxes, were $5,087 and $284 for the fiscal years ended June 30, 2015 and 2014, respectively. |
(3) | Amounts reclassified into income for gains on sale of available for sale investments were based on the average cost of the shares held (See Note 14). Such amounts are recorded in “Interest and other expenses, net” in the Consolidated Statements of Income. There was no tax expense associated with these gains reclassified into income as the Company utilized capital losses to offset these gains. |
Fiscal Year ended June 30, | |||||||
2015 | 2014 | ||||||
Balance at beginning of year | $ | 9,830 | $ | 10,456 | |||
Additions charged to income tax expense | 214 | 2,226 | |||||
Reductions credited to income tax expense | — | (760 | ) | ||||
Net change from liquidations, tax rate changes and other | — | (3,036 | ) | ||||
Currency translation adjustments | (989 | ) | 944 | ||||
Balance at end of year | $ | 9,055 | $ | 9,830 |