Subsequent Event

6 Months Ended

Jun. 30, 2015

Subsequent Events [Abstract]

Subsequent Event

Subsequent Event

Distributors such as Core-Mark may, from time to time, earn higher gross profits on inventory and excise tax stamp quantities on hand at the time manufacturers increase their prices or when states, localities or provinces increase their excise taxes.  Such increases are reflected in customer pricing for all subsequent sales, including sales of inventory on hand at the time of the increase. The higher gross profits are referred to as inventory holding gains. Several states increased their cigarette- related excise tax rates effective July 1, 2015, which will be reflected in customer pricing from July 1 forward. Two of the states did not require remittance of the incremental excise tax for inventories held at the time of the increase.  As the Company had tax stamps on hand for these two states at the time of the increase, the Company's gross margin will be approximately $9.0 million higher, which will be recognized as the associated inventory is sold, offset partially by incremental operating expenses related to executing on this opportunity.