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For the quarterly period ended June 30, 2020
For the transition period from                      to                     .
Commission File Number: 000-51515
Core-Mark Holding Company, Inc.
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of
incorporation or organization)
(IRS Employer
Identification No.)
1500 Solana Boulevard, Suite 340076262
(Address of principal executive offices)(Zip Code)
(940) 293-8600
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, par value $0.01 per shareCORENASDAQ Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.  
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
     Yes      No  
As of August 3, 2020, 45,092,286 shares of the registrant’s common stock, $0.01 par value per share, were outstanding.



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(In millions, except share and per share data)
June 30,December 31,
Current assets:
Cash and cash equivalents$108.2  $14.1  
Accounts receivable, net of allowance for credit losses of $15.5 and $14.5 as of June 30, 2020 and December 31, 2019, respectively
483.2  402.9  
Other receivables, net100.5  96.2  
Inventories, net (Note 3)638.9  670.9  
Deposits and prepayments63.6  116.0  
Total current assets1,394.4  1,300.1  
Property and equipment, net262.6  249.9  
Operating lease right-of-use assets181.1  199.8  
Goodwill72.8  72.8  
Other intangible assets, net43.1  47.2  
Other non-current assets, net24.9  28.6  
Total assets$1,978.9  $1,898.4  
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$305.1  $192.2  
Book overdrafts31.9  23.9  
Cigarette and tobacco taxes payable327.1  280.1  
Operating lease liabilities34.7  39.5  
Accrued liabilities155.0  151.0  
Total current liabilities853.8  686.7  
Long-term debt (Note 4)301.5  382.1  
Deferred income taxes23.0  22.6  
Long-term operating lease liabilities156.2  173.4  
Other long-term liabilities10.4  5.6  
Claims liabilities37.0  36.1  
Total liabilities1,381.9  1,306.5  
Contingencies (Note 5)
Stockholders’ equity:
Common stock, $0.01 par value (150,000,000 shares authorized; 52,910,228 and 52,702,551 shares issued; 45,086,055 and 45,113,722 shares outstanding at June 30, 2020 and December 31, 2019, respectively)
0.5  0.5  
Additional paid-in capital292.3  290.6  
Treasury stock at cost (7,824,173 and 7,588,829 shares of common stock at June 30, 2020 and December 31, 2019, respectively)
(118.0) (112.6) 
Retained earnings428.7  418.5  
Accumulated other comprehensive loss(6.5) (5.1) 
Total stockholders’ equity597.0  591.9  
Total liabilities and stockholders’ equity$1,978.9  $1,898.4  
See accompanying notes to condensed consolidated financial statements.

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(In millions, except per share data)

Three Months EndedSix Months Ended
June 30,June 30,
Net sales$4,263.9  $4,339.0  $8,203.2  $8,093.1  
Cost of goods sold4,050.8  4,100.1  7,771.7  7,646.0  
Gross profit213.1  238.9  431.5  447.1  
Warehousing and distribution expenses125.5  143.2  267.9  277.4  
Selling, general and administrative expenses59.8  64.6  123.7  130.5  
Amortization of intangible assets2.4  2.7  4.7  5.4  
Total operating expenses187.7  210.5  396.3  413.3  
Income from operations25.4  28.4  35.2  33.8  
Interest expense, net(2.8) (3.2) (6.3) (6.6) 
Foreign currency transaction losses, net  (1.0) (0.2) (1.2) 
Income before income taxes22.6  24.2  28.7  26.0  
Provision for income taxes(5.7) (6.5) (7.5) (7.0) 
Net income$16.9  $17.7  $21.2  $19.0  
Basic earnings per share (Note 6)$0.38  $0.39  $0.47  $0.41  
Diluted earnings per share (Note 6)$0.38  $0.38  $0.47  $0.41  
Basic weighted-average shares (Note 6)45.1  45.9  45.2  45.9  
Diluted weighted-average shares (Note 6)45.3  46.1  45.4  46.1  
See accompanying notes to condensed consolidated financial statements.


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(In millions)

Three Months EndedSix Months Ended
June 30,June 30,
Net income $16.9  $17.7  $21.2  $19.0  
Foreign currency translation gains (losses), net1.3  2.0  (1.4) 3.0  
Comprehensive income$18.2  $19.7  $19.8  $22.0  
See accompanying notes to condensed consolidated financial statements.


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(In millions, except per share amounts)

Three Months EndedSix Months Ended
June 30,June 30,
Total stockholders’ equity, beginning balances$582.2  $564.0  $591.9  $567.0  
Common stock:
Beginning and ending balances$0.5  $0.5  $0.5  $0.5  
Additional paid-in capital:
Beginning balances$290.2  $283.1  $290.6  $283.3  
Common stock issued, net of shares withheld for employee taxes    (2.4) (2.1) 
Stock-based compensation expense2.1  2.2  4.1  4.1  
Ending balances$292.3  $285.3  $292.3  $285.3  
Treasury stock:
Beginning balances$(118.0) $(90.6) $(112.6) $(90.6) 
Repurchase of common stock    (5.4)   
Ending balances$(118.0) $(90.6) $(118.0) $(90.6) 
Retained earnings:
Beginning balances$417.3  $377.8  $418.5  $381.6  
Net income16.9  17.7  21.2  19.0  
Dividends declared(5.5) (5.1) (11.0) (10.2) 
Ending balances$428.7  $390.4  $428.7  $390.4  
Accumulated other comprehensive loss:
Beginning balances$(7.8) $(6.8) $(5.1) $(7.8) 
Other comprehensive gains (losses)1.3  2.0  (1.4) 3.0  
Ending balances$(6.5) $(4.8) $(6.5) $(4.8) 
Total stockholders’ equity, ending balances$597.0  $580.8  $597.0  $580.8  
Common stock shares:
Beginning share balance52.9  52.7  52.7  52.5  
Common stock issued, net of shares withheld for employee taxes    0.2  0.2  
Ending share balance52.9  52.7  52.9  52.7  
Treasury stock shares:
Beginning share balance(7.8) (6.8) (7.6) (6.8) 
Repurchase of common stock    (0.2)   
Ending share balance(7.8) (6.8) (7.8) (6.8) 
Total shares outstanding45.1  45.9  45.1  45.9  
Dividends declared per share$0.12  $0.11  $0.24  $0.22  


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(In millions)
Six Months Ended
June 30,
Cash flows from operating activities:
Net income
$21.2  $19.0  
Adjustments to reconcile net income to net cash provided by operating activities:
LIFO and inventory provisions
15.6  14.4  
Amortization of debt issuance costs
0.4  0.4  
Stock-based compensation expense
4.1  4.1  
Credit loss expense, net
4.6  4.0  
Impairment charge and other
Loss on disposals
0.1  0.1  
Depreciation and amortization
32.4  30.9  
Foreign currency losses, net
0.2  1.2  
Deferred income taxes
0.4  (0.4) 
Changes in operating assets and liabilities:
Accounts receivable, net
(86.1) (79.3) 
Other receivables, net
(5.1) (17.8) 
Inventories, net
12.4  89.6  
Deposits, prepayments and other non-current assets
48.1  (54.5) 
Accounts payable
114.1  62.4  
Cigarette and tobacco taxes payable
49.0  (54.1) 
Claims, accrued and other long-term liabilities
7.3  10.8  
Net cash provided by operating activities
219.0  30.8  
Cash flows from investing activities:
Additions to property and equipment, net
(9.8) (9.2) 
Capitalization of software and related development costs
(0.9) (2.1) 
Proceeds from sale of property and equipment, net
    Proceeds from sale of other non-current assets1.1    
Net cash used in investing activities
(9.6) (11.1) 
Cash flows from financing activities:
Borrowings under the Credit Facility
884.8  861.2  
Repayments under the Credit Facility
(984.6) (870.5) 
Payments on finance leases
(5.5) (2.1) 
Dividends paid
(11.1) (10.2) 
Repurchases of common stock
Tax withholdings related to net share settlements of restricted stock units
(2.4) (2.1) 
Increase in book overdrafts
8.0  10.3  
Net cash used in financing activities
(116.3) (13.4) 
Effects of changes in foreign exchange rates1.0  (0.3) 
Change in cash and cash equivalents 94.1  6.0  
Cash and cash equivalents, beginning of period14.1  27.3  
Cash and cash equivalents, end of period$108.2  $33.3  
Supplemental disclosures:
Cash (paid) received during the period for:
Income taxes, net
$(8.9) $(10.1) 
$(4.3) $(5.4) 
Operating lease liabilities arising from obtaining new right-of-use assets
$2.0  $0.9  
Finance lease liabilities arising from obtaining new right-of-use assets
$27.9  $13.7  
Non-cash transactions between other non-current assets and other long-term liabilities
$  $3.3  

See accompanying notes to condensed consolidated financial statements.

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1. Summary of Company Information and Basis of Presentation
Core-Mark Holding Company, Inc., and its subsidiaries (collectively referred to herein as the “Company” or “Core-Mark”), are one of the largest marketers of fresh, food and broad-line supply solutions to the convenience retail industry in North America. The Company offers a full range of products, marketing programs and technology solutions to approximately 40,000 customer locations in the United States (“U.S.”) and Canada. The Company’s customers include traditional convenience stores, drug stores, mass merchants, grocery stores, liquor stores and other specialty and small format stores that carry convenience products. The Company’s product offering includes cigarettes, other tobacco products (“OTP”), alternative nicotine products, candy, snacks, fast food, groceries, fresh products, dairy, bread, beverages, general merchandise and health and beauty care products. The Company operates a network of thirty-two distribution centers in the U.S. and Canada (excluding two distribution facilities it operates as a third-party logistics provider). Twenty-seven distribution centers are located in the U.S. and five are located in Canada.
Basis of Presentation and Principles of Consolidation
The accompanying unaudited condensed consolidated balance sheet as of June 30, 2020, the unaudited condensed consolidated statements of operations and comprehensive income, the unaudited condensed consolidated statements of stockholders’ equity for the three and six months ended June 30, 2020 and 2019, and the unaudited condensed consolidated statements of cash flows for the six months ended June 30, 2020 and 2019, have been prepared in accordance with the requirements of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting. Accordingly, certain footnotes and other financial information that are normally required by generally accepted accounting principles in the U.S. (“GAAP”) have been condensed or omitted. The condensed consolidated balance sheet as of December 31, 2019 has been derived from the Company’s audited financial statements, which are included in its 2019 Annual Report on Form 10-K, filed with the SEC on March 2, 2020.
The consolidated financial statements include Core-Mark and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in the consolidated financial statements.
The unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements in its Annual Report on Form 10-K, for the year ended December 31, 2019.
The unaudited condensed consolidated interim financial statements include all adjustments necessary for the fair presentation of the Company’s consolidated results of operations, financial position, comprehensive income, changes in stockholders’ equity and cash flows.  Results for the interim periods are not necessarily indicative of results to be expected for the full year or any other future periods.
2. Summary of Significant Accounting Policies
Adoption of Accounting Pronouncements
On June 16, 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). The Company adopted this pronouncement on a modified retrospective basis effective January 1, 2020. The new guidance replaces the incurred loss impairment approach with a methodology that incorporates all expected credit loss estimates, resulting in more timely recognition of losses. The adoption of ASU 2016-13 and all subsequent amendments did not have a material impact on the Company’s consolidated financial statements.
On January 26, 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”).  The Company adopted this pronouncement on a prospective basis effective January 1, 2020. The new guidance simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test.  ASU 2017-04 requires goodwill impairment to be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of its goodwill.  Accordingly, the Company has amended its methodology for determining any goodwill impairment calculations. The adoption of ASU 2017-04 did not have a material impact on the Company’s consolidated financial statements.


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Recent Accounting Standards or Updates Not Yet Effective
On August 28, 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans -General (Topic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans (“ASU 2018-14”). The new guidance removes disclosures that are no longer considered cost beneficial, clarifies the specific requirements of disclosures and adds disclosure requirements identified as relevant for defined benefit pension and other post-retirement benefit plans. ASU 2018-14 requires retrospective application and is effective for annual periods beginning after December 15, 2020, with early adoption permitted. The Company has determined that ASU 2018-14 will not have a material impact on its consolidated financial statements.
On December 18, 2019 the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). The new guidance enhances and simplifies various aspects of the income tax accounting guidance, including requirements pertaining to hybrid tax regimes, ownership changes in investments, and interim-period accounting for enacted changes in tax law. ASU 2019-12 is effective for annual periods beginning after December 15, 2020, with early adoption permitted. The Company has determined that ASU 2019-12 will not have a material impact on its consolidated financial statements.
Concentration of Credit Risks
Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash investments, accounts receivable and other receivables. The Company places its cash and cash equivalents in short-term instruments with high-quality financial institutions and limits the amount of credit exposure in any one financial instrument.
A credit review is completed for new customers and ongoing credit evaluations of each customer’s financial condition are performed periodically, with an allowance recognized for expected credit losses. Credit limits given to customers are based on a risk assessment of their ability to pay and other factors. Accounts receivable are typically not collateralized, but the Company may require prepayments or other guarantees whenever deemed necessary.
Murphy U.S.A., the Company’s largest customer, accounted for approximately 15% of the Company’s net sales for the three and six months ended June 30, 2020 and approximately 13% of the Company’s net sales for the three and six months ended June 30, 2019. No other customer individually accounted for more than 10% of sales for these periods. No single customer individually accounted for 10% or more of the Company’s accounts receivable as of June 30, 2020 or December 31, 2019.
3. Inventories, Net
Inventories consist of the following (in millions):
June 30,
December 31,
Inventories at FIFO, net of reserves$859.7  $875.6  
Less: LIFO reserve(220.8) (204.7) 
Total inventories, net of reserves$638.9  $670.9  
Cost of goods sold reflects the application of the last-in, first-out (“LIFO”) method of valuing inventories in the U.S. based upon estimated annual producer price indexes. Inventories in Canada are valued on a first-in, first-out (“FIFO”) basis, as LIFO is not a permitted inventory valuation method in Canada. During periods of rising prices, the LIFO method of costing inventories generally results in higher current costs being charged against income while lower costs are retained in inventories. Conversely, during periods of decreasing prices, the LIFO method of costing inventories generally results in lower current costs being charged against income and higher stated inventories. If the FIFO method had been used for valuing inventories in the U.S., inventories would have been approximately $220.8 million and $204.7 million higher as of June 30, 2020 and December 31, 2019, respectively. The Company recorded LIFO expense of $8.3 million and $7.4 million for the three months ended June 30, 2020 and 2019, respectively, and $16.1 million and $14.4 million for the six months ended June 30, 2020 and 2019, respectively.

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4. Long-Term Debt
Long-term debt consists of the following (in millions):
 June 30,
December 31,
Amounts borrowed (Credit Facility)$225.0  $324.8  
Obligations under finance leases76.5  57.3  
Total long-term debt$301.5  $382.1  
The Company has a revolving credit facility (the “Credit Facility”) with a capacity of $750 million as of June 30, 2020, limited by a borrowing base consisting of eligible accounts receivables and inventories. The Credit Facility expires in March 2022 and has an expansion feature which permits an increase of $200 million, subject to borrowing base requirements. All obligations under the Credit Facility are secured by first-priority liens on substantially all of the Company’s present and future assets. The terms of the Credit Facility permit prepayment without penalty at any time (subject to customary breakage costs with respect to London Interbank Offered Rate (“LIBOR”) or Canadian Dollar Offered Rate (“CDOR”) based loans prepaid prior to the end of an interest period).
Amounts related to the Credit Facility are as follows (in millions, except interest rate data):
 June 30,
December 31,
Amounts borrowed, net$225.0  $324.8  
Outstanding letters of credit19.4  16.7  
Amounts available to borrow(1)
494.4  341.7  
Unamortized debt issuance costs1.3  1.7  
(1) Subject to borrowing base limitations, and excluding expansion feature of $200 million.
Three Months EndedSix Months Ended
June 30,June 30,
Average borrowings$354.3  $235.2  $345.3  $256.3  
Range of borrowings
225.0 - 451.0
141.7 - 330.6
151.5 - 499.3
141.7 - 390.0
Unused Credit Facility and letter of credit participation fees(1)
0.3  0.3  0.6  0.7  
Amortization of debt issuance costs(1)
0.2  0.2  0.4  0.4  
Weighted-average interest rate(2)
1.4 %3.7 %2.1 %3.7 %
(1) Included in interest expense, net.
(2) Calculated based on the daily cost of borrowing, reflecting a blend of prime and LIBOR rates.
5. Contingencies
The Company is subject to certain legal proceedings, claims, investigations and administrative proceedings in the ordinary course of its business. The Company records a provision for a liability when it is probable that the liability has been incurred and the amount of the liability can be reasonably estimated. These provisions, if any, are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. In the opinion of management, the outcome of pending litigation is not expected to have a material effect on the Company’s results of operations, financial condition or liquidity.

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On October 2, 2019, the United States Judicial Panel on Multidistrict Litigation transferred and consolidated all then-pending personal injury cases against Juul Labs, Inc. (“JLI”) involving the distribution and sale of JUUL products to the Northern District of California (the “JUUL MDL”). Subsequently, on March 11, 2020, the plaintiffs in the JUUL MDL filed a Personal Injury Consolidated Master Complaint against JLI, Philip Morris and various Altria Group entities, JLI co-founders, early JLI investors and board members, certain e-liquid manufacturers, and numerous distributors and retailers of JUUL products, including Core Mark. Consequently, Core-Mark has been added as a defendant in a number of these personal injury suits. The JLI MDL litigation is currently in an early stage, and the personal injury plaintiffs have not made a monetary demand to the defendants. Core-Mark believes that it is entitled to contractual, statutory and/or common law indemnification from JLI for any liability that could result from the JUUL MDL. Core-Mark and JLI are in discussions regarding these indemnification rights.
6. Earnings Per Share
The following table sets forth the computation of basic and diluted net earnings per share (dollars and shares in millions, except per share amounts):
Three Months EndedSix Months Ended
 June 30,June 30,
Net income$16.9  $17.7  $21.2  $19.0  
Weighted-average common shares outstanding
(basic shares)
45.1  45.9  45.2  45.9  
Adjustment for assumed dilution:
Restricted stock units0.1  0.2  0.1  0.2  
Performance shares0.1    0.1    
Weighted-average shares assuming dilution
(diluted shares)
45.3  46.1  45.4  46.1  
Earnings per share
$0.38  $0.39  $0.47  $0.41  
$0.38  $0.38  $0.47  $0.41  
(1) Basic and diluted earnings per share are calculated based on unrounded actual amounts.
The number of common shares that were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive were 31,138 and 502,161 for the three and six months ended June 30, 2020 respectively, and 7,927 and 12,138, for the same periods in 2019, respectively.
7. Stock-Based Compensation Plans
2019 Long-Term Incentive Plan
On May 21, 2019, the Company’s stockholders approved the 2019 Long-Term Incentive Plan (“2019 LTIP”) which, among other things, replaces the Company’s 2010 Long-Term Incentive Plan (as amended, the “2010 LTIP”) and reserves for awards an aggregate of up to 4,236,959 shares. As of June 30, 2020, the total number of shares available for issuance under the 2019 LTIP was 3,136,192. The 2019 LTIP allows the Company to grant, among other things, time-vesting and performance-based restricted stock unit awards. Awards may be made under the 2019 LTIP through May 21, 2029.
Grant Activities
During the six months ended June 30, 2020 and 2019, the Company granted 280,325 and 223,308, respectively, of time-vesting restricted stock units to certain of its employees and non-employee directors at a weighted-average grant date fair value of $25.38 and $29.38, respectively.
During the six months ended June 30, 2020, the Company granted 154,363 performance-based restricted stock units to certain of its employees at a weighted-average grant date fair value of $25.48. The 154,363 performance-based restricted stock units represent the maximum number that can be earned. The number of performance-based restricted stock units that

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employees ultimately earn will be based on the Company’s achievement of certain specified performance targets for the full year of 2020. During the six months ended June 30, 2019, the Company granted 154,511 performance-based restricted stock units to certain of its employees at a weighted-average grant date fair value of $29.90, all of which were ultimately earned, based upon 2019 performance criteria achieved.
Stock-Based Compensation Cost
Total stock-based compensation cost included in selling, general and administrative expenses was $2.1 million and $2.2 million for the three months ended June 30, 2020 and 2019, respectively. During each of the six months ended June 30, 2020 and 2019, the Company recognized stock-based compensation cost of $4.1 million. Total unrecognized stock-based compensation cost related to unvested share-based compensation arrangements was $12.9 million at June 30, 2020, which is expected to be recognized over a weighted-average period of 1.8 years. Total unrecognized stock-based compensation cost is adjusted for any unearned or estimated not to be earned performance-based restricted stock units or forfeited shares.
8. Stockholders’ Equity
The Board of Directors approved the following cash dividends in 2020 (in millions, except per share data):
Declaration DateDividend Per ShareRecord DateCash Payment AmountPayment Date
February 24, 2020$0.12March 16, 2020$5.5March 27, 2020
May 7, 2020$0.12May 22, 2020$5.4June 19, 2020
August 6, 2020$0.12August 21, 2020
September 18, 2020
(1) Amount will be determined based on common stock outstanding as of the record date.
Repurchase of Common Stock

On February 24, 2020, the Company’s Board of Directors authorized a $60.0 million stock repurchase program (the “Program”), replacing the Company’s prior stock repurchase program. At the time of approval, the Company had funds totaling $0.4 million remaining under the prior stock repurchase program, which were subsequently retired unused. The timing, price and volume of purchases under the Program are based on market conditions, cash and liquidity requirements, relevant securities laws and other factors. The Program may be discontinued or amended at any time. The Program has no expiration date and terminates when the amount authorized has been expended or the Board of Directors withdraws its authorization.

On April 14, 2020, the Company announced that spending under the Program would be temporarily postponed due to the volatility related to the novel coronavirus pandemic (“COVID-19”). During the three months ended June 30, 2020, no shares of common stock were purchased under the Program. During the six months ended June 30, 2020, the Company spent $5.4 million to repurchase 235,344 shares of common stock under the Program. During the three and six months ended June 30, 2019, no shares of common stock were repurchased under the prior stock repurchase program. As of June 30, 2020, there was $54.6 million available for future share repurchases under the Program.
9. Segment and Geographic Information
The Company identifies its operating segments based primarily on the way the Chief Operating Decision Maker (“CODM”) evaluates performance and makes decisions. The Chief Executive Officer of the Company has been identified as the CODM. From the perspective of the CODM, the Company is engaged primarily in the business of distributing packaged consumer products to convenience retail stores in the U.S. and Canada (collectively “North America”), each of which consists of customers that have similar characteristics. Therefore, the Company has determined that it has two operating segments, U.S. and Canada, which aggregate to one reportable segment. Additionally, the Company presents its segment reporting information based on business operations for each of the two geographic areas in which it operates and also by major product category.

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Information about the Company’s business operations based on geographic areas is as follows (in millions):
Three Months EndedSix Months Ended
June 30,June 30,
Net sales:
United States$3,860.0  $3,934.5  $7,439.6  $7,348.9  
Canada394.6  390.1  743.0  716.7  
9.3  14.4  20.6  27.5  
Total$4,263.9  $4,339.0  $8,203.2  $8,093.1  
 Income before income taxes:
United States$26.0  $31.3  $35.2  $40.6  
Canada1.8  2.1  4.3  3.9  
(5.2) (9.2) (10.8) (18.5) 
Total$22.6  $24.2  $28.7  $26.0  
Interest expense, net:(3)
United States$15.3  $12.8  $29.9  $25.8  
Canada(0.2) 0.3  0.3  0.8  
(12.3) (9.9) (23.9) (20.0) 
Total$2.8  $3.2  $6.3  $6.6  
Depreciation and amortization:
United States$11.0