Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 25, 2016 | Jul. 28, 2016 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 25, 2016 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,016 | |
Entity Registrant Name | WEIS MARKETS INC | |
Trading Symbol | wmk | |
Entity Central Index Key | 105,418 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 26,898,443 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 25, 2016 | Dec. 26, 2015 |
Assets | ||
Cash and cash equivalents | $ 34,255 | $ 17,596 |
Marketable securities | 78,380 | 91,629 |
SERP investment | 10,343 | 9,079 |
Accounts receivable, net | 69,799 | 88,083 |
Inventories | 223,798 | 229,399 |
Prepaid expenses and other current assets | 15,737 | 17,198 |
Income taxes recoverable | 0 | 1,666 |
Total current assets | 432,312 | 454,650 |
Property and equipment, net | 753,521 | 738,985 |
Goodwill | 35,162 | 35,162 |
Intangible and other assets, net | 7,794 | 7,162 |
Total assets | 1,228,789 | 1,235,959 |
Liabilities | ||
Accounts payable | 136,463 | 160,441 |
Accrued expenses | 43,624 | 37,819 |
Accrued self-insurance | 17,038 | 16,770 |
Deferred revenue, net | 4,195 | 6,898 |
Income taxes payable | 4,406 | 0 |
Total current liabilities | 205,726 | 221,928 |
Postretirement benefit obligations | 14,043 | 14,368 |
Accrued self-insurance | 22,761 | 22,761 |
Deferred income taxes | 93,056 | 97,020 |
Other | 1,038 | 8,135 |
Total liabilities | 336,624 | 364,212 |
Shareholders' Equity | ||
Common stock, no par value, 100,800,000 shares authorized, 33,047,807 shares issued, 26,898,443 shares outstanding | 9,949 | 9,949 |
Retained earnings | 1,027,148 | 1,007,894 |
Accumulated other comprehensive income (Net of deferred taxes of $4,134 in 2016 and $3,323 in 2015) | 5,925 | 4,761 |
Shareholders' equity before treasury stock | 1,043,022 | 1,022,604 |
Treasury stock at cost, 6,149,364 shares | (150,857) | (150,857) |
Total shareholders' equity | 892,165 | 871,747 |
Total liabilities and shareholders' equity | $ 1,228,789 | $ 1,235,959 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 25, 2016 | Dec. 26, 2015 | |
Consolidated Balance Sheets [Abstract] | ||
Common stock, par value | $ 0 | $ 0 |
Common stock, shares authorized | 100,800,000 | 100,800,000 |
Common stock, shares issued | 33,047,807 | 33,047,807 |
Common stock, shares outstanding | 26,898,443 | 26,898,443 |
Accumulated other comprehensive income, deferred taxes | $ 4,134 | $ 3,323 |
Treasury stock, shares | 6,149,364 | 6,149,364 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 25, 2016 | Jun. 27, 2015 | |
Consolidated Statements of Income [Abstract] | ||||
Net sales | $ 730,433 | $ 718,380 | $ 1,468,637 | $ 1,430,806 |
Cost of sales, including warehousing and distribution expenses | 528,495 | 519,461 | 1,059,588 | 1,036,772 |
Gross profit on sales | 201,938 | 198,919 | 409,049 | 394,034 |
Operating, general and administrative expenses | 177,881 | 173,353 | 353,723 | 348,603 |
Income from operations | 24,057 | 25,566 | 55,326 | 45,431 |
Investment income | 682 | 585 | 1,319 | 1,117 |
Income before provision for income taxes | 24,739 | 26,151 | 56,645 | 46,548 |
Provision for income taxes | 9,474 | 9,507 | 21,252 | 16,581 |
Net income | $ 15,265 | $ 16,644 | $ 35,393 | $ 29,967 |
Weighted-average shares outstanding, basic and diluted | 26,898,443 | 26,898,443 | 26,898,443 | 26,898,443 |
Cash dividends per share | $ 0.30 | $ 0.30 | $ 0.60 | $ 0.60 |
Basic and diluted earnings per share | $ 0.57 | $ 0.62 | $ 1.32 | $ 1.12 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 25, 2016 | Jun. 27, 2015 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net income | $ 15,265 | $ 16,644 | $ 35,393 | $ 29,967 |
Other comprehensive income (loss) by component, net of tax: | ||||
Available-for-sale marketable securities Unrealized holding gains (losses) arising during period (Net of deferred taxes of $353 and $88, respectively for the 13 Weeks Ended and $922 and $76, respectively for the 26 Weeks Ended) | 506 | (127) | 1,322 | (109) |
Reclassification adjustment for gains included in net income (Net of deferred taxes of $0 and $4, respectively for the 13 Weeks Ended and $111 and $7, respectively for the 26 Weeks Ended) | 0 | (5) | (158) | (8) |
Other comprehensive income (loss), net of tax | 506 | (132) | 1,164 | (117) |
Comprehensive income, net of tax | $ 15,771 | $ 16,512 | $ 36,557 | $ 29,850 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 25, 2016 | Jun. 27, 2015 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||||
Unrealized holding gains (losses) arising during period, deferred taxes | $ 353 | $ 88 | $ 922 | $ 76 |
Reclassification adjustment for gains included in net income, deferred taxes | $ 0 | $ 4 | $ 111 | $ 7 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 25, 2016 | Jun. 27, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 35,393 | $ 29,967 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 32,481 | 30,622 |
Amortization | 4,506 | 4,140 |
Loss (gain) on disposition of fixed assets | 58 | (271) |
Gain on sale of marketable securities | (269) | (15) |
Deferred income taxes | (4,775) | (7,169) |
Changes in operating assets and liabilities: | ||
Inventories | 5,601 | 8,680 |
Accounts receivable and prepaid expenses | 19,745 | 4,314 |
Income taxes recoverable | 1,666 | 612 |
Accounts payable and other liabilities | (25,187) | (14,240) |
Income taxes payable | 4,406 | 6,836 |
Other | 729 | 442 |
Net cash provided by operating activities | 74,354 | 63,918 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (54,474) | (38,979) |
Proceeds from the sale of property and equipment | 146 | 1,285 |
Purchase of marketable securities | (1,284) | (13,512) |
Proceeds from maturities of marketable securities | 835 | 600 |
Proceeds from the sale of marketable securities | 15,213 | 6,553 |
Purchase of intangible assets | (728) | (1,446) |
Change in SERP investment | (1,264) | (1,388) |
Net cash used in investing activities | (41,556) | (46,887) |
Cash flows from financing activities: | ||
Dividends paid | (16,139) | (16,139) |
Net cash used in financing activities | (16,139) | (16,139) |
Net increase in cash and cash equivalents | 16,659 | 892 |
Cash and cash equivalents at beginning of year | 17,596 | 22,986 |
Cash and cash equivalents at end of period | $ 34,255 | $ 23,878 |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 25, 2016 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | (1) Significant Accounting Policies Basis of Presentation : The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring deferrals and accruals) considered necessary for a fair presentation have been included. The operating results for the periods presented are not necessarily indicative of the results to be expected for the full year. The Company has evaluated subsequent events for disclosure through the date of issuance of the accompanying unaudited consolidated interim financial statements and there were no material subsequent events which require additional disclosure , other than the May 2016 and July 2016 definitive agreements to purchase the Mars Super Market and Food Lion Supermarket locations as disclosed in Note (6) . For further information, refer to the Consolidated Financial Statements and footnotes thereto included in the Company's latest Annual Report on Form 10-K . |
Current Relevant Accounting Sta
Current Relevant Accounting Standards | 6 Months Ended |
Jun. 25, 2016 | |
Current Relevant Accounting Standards [Abstract] | |
Current Relevant Accounting Standards | (2) Current Relevant Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606), which amended the existing accounting standards for revenue recognition. ASU 2014-09 establishes principles for recognizing revenue upon the transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services. The standard was initially effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. In August 2015, the FASB issued a one-year deferral of the effective date of this new guidance resulting in it now being effective for the Company beginning in fiscal year 2018. In March, April and May of 2016 the FASB issued ASU 2016-08, ASU 2016-10 and ASU 2016-12, respectively, Revenue from Contracts with Customers (Topic 606) which amends the guidance in ASU 2014-09. Early adoption is not permitted. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. The Company is currently in the process of evaluating the impact of adoption of the ASU. The Company expects that the adoption of the ASU will not have a significant impact on the Company’s Consolidated Financial Statements. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40)(Topic 718): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. ASU 2014-15 provides guidance related to management’s responsibility to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern and to provide related note disclosures. The new requirements are effective for the annual periods ending after December 15, 2016, and for interim periods and annual periods thereafter. Early adoption is permitted. Adoption of the new ASU will not have an impact on the Company’s Consolidated Financial Statements. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventor y. ASU 2015-11 amends guidance on the measurement of inventory from lower of cost or market to net realizable value. The amendment applies to all inventory other than those measured by Last-In-First-Out (LIFO) and the Retail Inventory Method (RIM). The amendment is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is permitted. Adoption of the new ASU will not have a material impact on the Company’s Consolidated Financial Statements. In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. ASU 2015-16 requires that any effect on earnings due to depreciation, amortization or other income effects, due to a change to the provisional amounts be recorded in the current period’s financial statements as if the accounting had been completed at the acquisition date. The portion of the amount recorded in the current-period earnings, which would have been recorded in the previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date, must be presented separately on the face of the income statement or disclosed in the notes to the financial statements by line item. The amendment is effective for the fiscal year beginning after December 15, 2015. The amendments are to be applied prospectively to any adjustments occurring after the effective date. Adoption of the ASU did not have a current impact on the Company’s 2016 Consolidated Financial Statements. (2) Current Relevant Accounting Standards (continued) In January 2016, the FASB issued ASU 2016-01 Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Fin ancial Liabilities . ASU 2016-01 generally requires that equity investments (excluding equity method investments) be measured at fair value with changes in fair value recognized in net income. ASU 2016-01 also modifies certain disclosure requirements related to financial assets and liabilities. Under existing GAAP, changes in fair value of available-for-sale equity investments are recorded in other comprehensive income. The Company expects that the adoption of ASU 2016-01 will likely have an impact on the net income reported in the Company’s Consolidated Statements of Income but it is not expected to significantly impact the Company’s comprehensive income or shareholders’ equity . The amendment is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with the cumulative effect of the adoption made to the balance sheet as of the date of adoption. Adoption will result in a reclassification of the related accumulated unrealized appreciation, net of applicable deferred income taxes, currently included in accumulated other comprehensive income to retained earnings, resulting in no impact on the Company’s shareholders’ equity . In February 2016, the FASB issued ASU 2016-02 Leases (Topic 842). ASU 2016-02 requires lessees to recognize assets and liabilities for the rights and obligations created by their leases with lease terms more than 12 months. Current guidance only requires capital leases to be recognized on the balance sheet. However, the ASU 2016-02 now requires that both capital and operating leases be recognized on the balance sheet. The effect on cash flows will strictly depend on whether the lease is classified as an operating lease or capital lease. The ASU 2016-02 will require disclosures to aid investors and other financial statement users to better understand the amount, timing and uncertainty of the cash flows arising from leases. These disclosures are to include qualitative and quantitative information about the amounts recorded in the financial statements. This update will have limited impacts on the accounting for leases by lessors. However, new guidance contains targeted improvements to align, where necessary, the lessor’s accounting with the lessee’s accounting standards. ASU 2016-02 will become effective for annual periods beginning after December 15, 2018 and for interim periods within those fiscal years. Although the Company has not completed its assessment, the Company expects that the adoption of ASU 2016-02 will have a significant impact on the Company’s Consolidated Balance Sheets. In March 2016, the FASB issued ASU 2016-04 Liabilities – Extinguishments of Liabilities (Suptopic 405-20) Recognition of Breakage for Certain Prepaid Stored-Value Products. ASU 2016-04 requires the debtor to derecognize a liability, such as a prepaid stored-value product, if and only if it has been extinguished by paying the creditor in cash, other financial assets, goods or services or if the debtor is relieved of its obligation legally, either judicially or by the creditor. ASU 2016-04 also requires that an entity must disclose the methodology and specific judgements made in applying the breakage recognized. ASU 2016-04 will become effective for the financial statements issued for the fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early application is permitted including adoption in an interim period. The Company is currently in the process of evaluating the impact of adoption of the ASU. The Company expects that the adoption of the ASU will not have a significant impact on the Company’s Consolidated Financial Statements. |
Investments
Investments | 6 Months Ended |
Jun. 25, 2016 | |
Investments [Abstract] | |
Investments | (3) Investments The Company’s marketable securities are all classified as available-for-sale within “Current Assets” in the Company’s Consolidated Balance Sheets. FASB has established three levels of inputs that may be used to measure fair value: Level 1 Observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2 Observable inputs, other than Level 1 inputs in active markets, that are observable either directly or indirectly; and Level 3 Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions. The Company’s marketable securities valued using Level 1 inputs include highly liquid equity securities, for which quoted market prices are available . The Company’s bond portfolio is valued using Level 2 inputs. The Company’s municipal bonds are valued using a combination of pricing for similar securities, recently executed transactions, cash flow models with yield curves and other pricing models utilizing observable inputs, which are considered Level 2 inputs. For Level 2 investment valuation, the Company utilizes standard pricing procedures of its investment brokerage firm(s) which include various third party pricing services. These procedures also require specific price monitoring practices as well as pricing review reports, valuation oversight and pricing challenge procedures to maintain the most accurate representation of investment fair market value. In addition, the Company engages an independent firm to value a sample of the Company’s municipal bond holdings annually in order to validate the investment’s assigned fair value. The Company accrues interest on its municipal bond portfolio throughout the life of each bond held. Dividends from the equity securities are recognized as received. Both interest and dividends are recognized in “Investment income” on the Company’s Consolidated Statements of Income. Marketable securities, as of June 25, 2016 and December 26, 2015, consisted of: Gross Gross (dollars in thousands) Amortized Unrealized Unrealized Fair June 25, 2016 Cost Holding Gains Holding Losses Value Available-for-sale: Level 1 Equity securities $ 1,198 $ 8,102 $ - $ 9,300 Level 2 Municipal bonds 67,123 1,968 (11) 69,080 $ 68,321 $ 10,070 $ (11) $ 78,380 Gross Gross (dollars in thousands) Amortized Unrealized Unrealized Fair December 26, 2015 Cost Holding Gains Holding Losses Value Available-for-sale: Level 1 Equity securities $ 1,198 $ 6,682 $ - $ 7,880 Level 2 Municipal bonds 82,347 1,468 (66) 83,749 $ 83,545 $ 8,150 $ (66) $ 91,629 Maturities of marketable securities classified as available-for-sale at June 25, 2016, were as follows: Amortized Fair (dollars in thousands) Cost Value Available-for-sale: Due within one year $ 6,142 $ 6,188 Due after one year through five years 44,922 45,824 Due after five years through ten years 16,059 17,068 Equity securities 1,198 9,300 $ 68,321 $ 78,380 (3) Investments (continued) The Company also maintains a non-qualified supplemental executive retirement plan and a non-qualified pharmacist deferred compensation plan for certain of its associates which allows them to defer income to future periods. Participants in the plans earn a return on their deferrals based on mutual fund investments. The Company chooses to invest in the underlying mutual fund investments to offset the liability associated with the non-qualified deferred compensation plans. Such investments are reported on the Company’s Consolidated Balance Sheets as “SERP investment,” are classified as trading securities and are measured at fair value using Level 1 inputs with gains and losses included in “Investment income” on the Company’s Consolidated Statements of Income. The changes in the underlying liability to the associate are recorded in “Operating, general and administrative expenses.” |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 25, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | (4) Accumulated Other Comprehensive Income All balances in accumulated other comprehensive income are related to available-for-sale marketable securities. The following table sets forth the balance of the Company’s accumulated other comprehensive income, net of tax. Unrealized Gains on Available-for-Sale (dollars in thousands) Marketable Securities Accumulated other comprehensive income balance as of December 26, 2015 $ 4,761 Other comprehensive income before reclassifications 1,322 Amounts reclassified from accumulated other comprehensive income (158) Net current period other comprehensive income 1,164 Accumulated other comprehensive income balance as of June 25, 2016 $ 5,925 The following table sets forth the effects on net income of the amounts reclassified out of accumulated other comprehensive income for the periods ended June 25, 2016 and June 27, 2015. Gains Reclassified from Accumulated Other Comprehensive Income to the Consolidated Statements of Income 13 Weeks Ended 26 Weeks Ended (dollars in thousands) Location June 25, 2016 June 27, 2015 June 25, 2016 June 27, 2015 Unrealized gains on available-for-sale marketable securities Investment income $ - $ 9 $ 269 $ 15 Provision for income taxes - (4) (111) (7) Total amount reclassified, net of tax $ - $ 5 $ 158 $ 8 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 25, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | (5) Income Taxes Cash paid for federal income taxes was $17.5 million and $15.5 million in the first half of 2016 and 2015, respectively. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 25, 2016 | |
Acquisitions [Abstract] | |
Acquisitions | (6) Acquisition s In May 2016, the Company announced plans to purchase five Mars Super Market stores located in Maryland. The Company will acquire these locations and operations in an effort to expand its presence in the Baltimore County region and plans to complete the acquisition in the third quarter of 2016. In July 2016, the Company announced it had reached a definitive agreement with Food Lion, LLC to purchase the assets of 38 Food Lion Supermarket locations operating in the states of Maryland, Virginia and Delaware. The completion of the intended purchase, pending regulatory approval, is estimated to be completed in the fourth quarter of 2016. With this purchase 21 Maryland stores, 13 Virginia stores, and 4 Delaware stores, will be added to the Company’s store count. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 25, 2016 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | (7) Basis of Presentation In conjunction with the September 26, 2015 quarterly financial statement close process, and while researching alternative methods to calculate retained claim liability for the Company’s self-insured workers compensation and general liability insurance programs, the Company discovered errors in the application of the actuarial methods used to estimate the obligation of future payments resulting from claims due to past events. These errors primarily related to the Company’s selection of loss development factors and the application of such factors to the population of claims . The impact of these prior period misstatements to the Company’s Consolidated Financial Statements resulted in the understatement of workers compensation and general liability expense with a corresponding understatement of self-insurance liabilities over multiple fiscal periods through June 27, 2015. Consequently, the Company has restated certain prior period amounts to correct these errors. Based on an analysis of quantitative and qualitative factors in accordance with SEC Staff Accounting Bulletins 99 and 108, the Company concluded that these errors were not material to the consolidated financial position, results of operations or cash flows as presented in the Company’s quarterly and annual financial statements that have been previously filed in the Company’s Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K. As a result, amendment of such reports was not required. In preparing the Company’s Consolidated Financial Statements for the thirteen and thirty-nine weeks ended September 26, 2015 and for each of the three years in the period ended December 26, 2015, the Company made appropriate revisions to its Consolidated Financial Statements for historical periods. Such changes were reflected in the financial results for the thirteen and thirty-nine weeks ended September 26, 2015 and are also reflected in the historical financial results included in these Consolidated Financial Statements. The effect of these errors increased net income by $214,000 , or $0.01 per share, for the thirteen weeks ended June 27, 2015 and by $428,000 , or $0.02 per share, for the twenty-six weeks ended June 27, 2015. Additional information about these corrections, including a reconciliation of each financial statement line item affected, has been included in Note 7 to the Company’s Consolidated Financial Statements contained in its Quarterly Report on Form 10-Q for the period ended September 26, 2015. |
Significant Accounting Polici15
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 25, 2016 | |
Significant Accounting Policies [Abstract] | |
Basis of Presentation [Policy Text Block] | Basis of Presentation : The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring deferrals and accruals) considered necessary for a fair presentation have been included. The operating results for the periods presented are not necessarily indicative of the results to be expected for the full year. The Company has evaluated subsequent events for disclosure through the date of issuance of the accompanying unaudited consolidated interim financial statements and there were no material subsequent events which require additional disclosure , other than the May 2016 and July 2016 definitive agreements to purchase the Mars Super Market and Food Lion Supermarket locations as disclosed in Note (6) . For further information, refer to the Consolidated Financial Statements and footnotes thereto included in the Company's latest Annual Report on Form 10-K . |
Current Relevant Accounting S16
Current Relevant Accounting Standards (Policies) | 6 Months Ended |
Jun. 25, 2016 | |
Current Relevant Accounting Standards [Abstract] | |
Current Relevant Accounting Standards [Policy Text Block] | In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606), which amended the existing accounting standards for revenue recognition. ASU 2014-09 establishes principles for recognizing revenue upon the transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services. The standard was initially effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. In August 2015, the FASB issued a one-year deferral of the effective date of this new guidance resulting in it now being effective for the Company beginning in fiscal year 2018. In March, April and May of 2016 the FASB issued ASU 2016-08, ASU 2016-10 and ASU 2016-12, respectively, Revenue from Contracts with Customers (Topic 606) which amends the guidance in ASU 2014-09. Early adoption is not permitted. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. The Company is currently in the process of evaluating the impact of adoption of the ASU. The Company expects that the adoption of the ASU will not have a significant impact on the Company’s Consolidated Financial Statements. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40)(Topic 718): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. ASU 2014-15 provides guidance related to management’s responsibility to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern and to provide related note disclosures. The new requirements are effective for the annual periods ending after December 15, 2016, and for interim periods and annual periods thereafter. Early adoption is permitted. Adoption of the new ASU will not have an impact on the Company’s Consolidated Financial Statements. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventor y. ASU 2015-11 amends guidance on the measurement of inventory from lower of cost or market to net realizable value. The amendment applies to all inventory other than those measured by Last-In-First-Out (LIFO) and the Retail Inventory Method (RIM). The amendment is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is permitted. Adoption of the new ASU will not have a material impact on the Company’s Consolidated Financial Statements. In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. ASU 2015-16 requires that any effect on earnings due to depreciation, amortization or other income effects, due to a change to the provisional amounts be recorded in the current period’s financial statements as if the accounting had been completed at the acquisition date. The portion of the amount recorded in the current-period earnings, which would have been recorded in the previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date, must be presented separately on the face of the income statement or disclosed in the notes to the financial statements by line item. The amendment is effective for the fiscal year beginning after December 15, 2015. The amendments are to be applied prospectively to any adjustments occurring after the effective date. Adoption of the ASU did not have a current impact on the Company’s 2016 Consolidated Financial Statements. (2) Current Relevant Accounting Standards (continued) In January 2016, the FASB issued ASU 2016-01 Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Fin ancial Liabilities . ASU 2016-01 generally requires that equity investments (excluding equity method investments) be measured at fair value with changes in fair value recognized in net income. ASU 2016-01 also modifies certain disclosure requirements related to financial assets and liabilities. Under existing GAAP, changes in fair value of available-for-sale equity investments are recorded in other comprehensive income. The Company expects that the adoption of ASU 2016-01 will likely have an impact on the net income reported in the Company’s Consolidated Statements of Income but it is not expected to significantly impact the Company’s comprehensive income or shareholders’ equity . The amendment is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with the cumulative effect of the adoption made to the balance sheet as of the date of adoption. Adoption will result in a reclassification of the related accumulated unrealized appreciation, net of applicable deferred income taxes, currently included in accumulated other comprehensive income to retained earnings, resulting in no impact on the Company’s shareholders’ equity . In February 2016, the FASB issued ASU 2016-02 Leases (Topic 842). ASU 2016-02 requires lessees to recognize assets and liabilities for the rights and obligations created by their leases with lease terms more than 12 months. Current guidance only requires capital leases to be recognized on the balance sheet. However, the ASU 2016-02 now requires that both capital and operating leases be recognized on the balance sheet. The effect on cash flows will strictly depend on whether the lease is classified as an operating lease or capital lease. The ASU 2016-02 will require disclosures to aid investors and other financial statement users to better understand the amount, timing and uncertainty of the cash flows arising from leases. These disclosures are to include qualitative and quantitative information about the amounts recorded in the financial statements. This update will have limited impacts on the accounting for leases by lessors. However, new guidance contains targeted improvements to align, where necessary, the lessor’s accounting with the lessee’s accounting standards. ASU 2016-02 will become effective for annual periods beginning after December 15, 2018 and for interim periods within those fiscal years. Although the Company has not completed its assessment, the Company expects that the adoption of ASU 2016-02 will have a significant impact on the Company’s Consolidated Balance Sheets. In March 2016, the FASB issued ASU 2016-04 Liabilities – Extinguishments of Liabilities (Suptopic 405-20) Recognition of Breakage for Certain Prepaid Stored-Value Products. ASU 2016-04 requires the debtor to derecognize a liability, such as a prepaid stored-value product, if and only if it has been extinguished by paying the creditor in cash, other financial assets, goods or services or if the debtor is relieved of its obligation legally, either judicially or by the creditor. ASU 2016-04 also requires that an entity must disclose the methodology and specific judgements made in applying the breakage recognized. ASU 2016-04 will become effective for the financial statements issued for the fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early application is permitted including adoption in an interim period. The Company is currently in the process of evaluating the impact of adoption of the ASU. The Company expects that the adoption of the ASU will not have a significant impact on the Company’s Consolidated Financial Statements. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 25, 2016 | |
Investments [Abstract] | |
Marketable securities [Table Text Block] | Marketable securities, as of June 25, 2016 and December 26, 2015, consisted of: Gross Gross (dollars in thousands) Amortized Unrealized Unrealized Fair June 25, 2016 Cost Holding Gains Holding Losses Value Available-for-sale: Level 1 Equity securities $ 1,198 $ 8,102 $ - $ 9,300 Level 2 Municipal bonds 67,123 1,968 (11) 69,080 $ 68,321 $ 10,070 $ (11) $ 78,380 Gross Gross (dollars in thousands) Amortized Unrealized Unrealized Fair December 26, 2015 Cost Holding Gains Holding Losses Value Available-for-sale: Level 1 Equity securities $ 1,198 $ 6,682 $ - $ 7,880 Level 2 Municipal bonds 82,347 1,468 (66) 83,749 $ 83,545 $ 8,150 $ (66) $ 91,629 |
Maturities of marketable securities classified as available-for-sale [Table Text Block] | Maturities of marketable securities classified as available-for-sale at June 25, 2016, were as follows: Amortized Fair (dollars in thousands) Cost Value Available-for-sale: Due within one year $ 6,142 $ 6,188 Due after one year through five years 44,922 45,824 Due after five years through ten years 16,059 17,068 Equity securities 1,198 9,300 $ 68,321 $ 78,380 |
Accumulated Other Comprehensi18
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 25, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Unrealized Gains on Available-for-Sale (dollars in thousands) Marketable Securities Accumulated other comprehensive income balance as of December 26, 2015 $ 4,761 Other comprehensive income before reclassifications 1,322 Amounts reclassified from accumulated other comprehensive income (158) Net current period other comprehensive income 1,164 Accumulated other comprehensive income balance as of June 25, 2016 $ 5,925 |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Gains Reclassified from Accumulated Other Comprehensive Income to the Consolidated Statements of Income 13 Weeks Ended 26 Weeks Ended (dollars in thousands) Location June 25, 2016 June 27, 2015 June 25, 2016 June 27, 2015 Unrealized gains on available-for-sale marketable securities Investment income $ - $ 9 $ 269 $ 15 Provision for income taxes - (4) (111) (7) Total amount reclassified, net of tax $ - $ 5 $ 158 $ 8 |
Investments (Available For Sale
Investments (Available For Sale Securities) (Details) - USD ($) $ in Thousands | Jun. 25, 2016 | Dec. 26, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost, Total | $ 68,321 | $ 83,545 |
Gross Unrealized Holding Gains | 10,070 | 8,150 |
Gross Unrealized Holding Losses | (11) | (66) |
Fair Value | 78,380 | 91,629 |
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost, Total | 1,198 | 1,198 |
Gross Unrealized Holding Gains | 8,102 | 6,682 |
Gross Unrealized Holding Losses | 0 | 0 |
Fair Value | 9,300 | 7,880 |
Municipal Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost, Total | 67,123 | 82,347 |
Gross Unrealized Holding Gains | 1,968 | 1,468 |
Gross Unrealized Holding Losses | (11) | (66) |
Fair Value | $ 69,080 | $ 83,749 |
Investments (Maturities of Mark
Investments (Maturities of Marketable Securities) (Details) - USD ($) $ in Thousands | Jun. 25, 2016 | Dec. 26, 2015 |
Investments [Abstract] | ||
Amortized Cost, Due within one year | $ 6,142 | |
Fair Value, Due within one year | 6,188 | |
Amortized Cost, Due after one year through five years | 44,922 | |
Fair Value, Due after one year through five years | 45,824 | |
Amortized Cost, Due after five years through ten years | 16,059 | |
Fair Value, Due after five years through ten years | 17,068 | |
Amortized Cost, Equity securities | 1,198 | |
Fair Value, Equity securities | 9,300 | |
Available-for-sale Securities, Amortized Cost, Total | 68,321 | $ 83,545 |
Available-for-sale Securities, Fair Value, Total | $ 78,380 | $ 91,629 |
Accumulated Other Comprehensi21
Accumulated Other Comprehensive Income (Schedule of Accumulated Other Comprehensive Income) (Details) - Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] $ in Thousands | 6 Months Ended |
Jun. 25, 2016USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Accumulated other comprehensive income balance, beginning balance | $ 4,761 |
Other comprehensive income before reclassifications | 1,322 |
Amounts reclassified from accumulated other comprehensive income | (158) |
Net current period other comprehensive income | 1,164 |
Accumulated other comprehensive income balance, ending balance | $ 5,925 |
Accumulated Other Comprehensi22
Accumulated Other Comprehensive Income (Reclassifications out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 25, 2016 | Jun. 27, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Investment income | $ 682 | $ 585 | $ 1,319 | $ 1,117 |
Provision for income taxes | (9,474) | (9,507) | (21,252) | (16,581) |
Net income | 15,265 | 16,644 | 35,393 | 29,967 |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Investment income | 0 | 9 | 269 | 15 |
Provision for income taxes | 0 | (4) | (111) | (7) |
Net income | $ 0 | $ 5 | $ 158 | $ 8 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 25, 2016 | Jun. 27, 2015 | |
Federal [Member] | ||
Income Taxes Paid | $ 17.5 | $ 15.5 |
Acquisitions (Details)
Acquisitions (Details) - Scenario, Forecast [Member] - store | 3 Months Ended | |
Dec. 31, 2016 | Sep. 24, 2016 | |
Mars Super Market [Member] | Maryland [Member] | ||
Acquisitions [Line Items] | ||
Number of stores acquired | 5 | |
Food Lion, LLC [Member] | ||
Acquisitions [Line Items] | ||
Number of stores acquired | 38 | |
Food Lion, LLC [Member] | Maryland [Member] | ||
Acquisitions [Line Items] | ||
Number of stores acquired | 21 | |
Food Lion, LLC [Member] | Virginia [Member] | ||
Acquisitions [Line Items] | ||
Number of stores acquired | 13 | |
Food Lion, LLC [Member] | Delaware [Member] | ||
Acquisitions [Line Items] | ||
Number of stores acquired | 4 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 25, 2016 | Jun. 27, 2015 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net income | $ 15,265,000 | $ 16,644,000 | $ 35,393,000 | $ 29,967,000 |
Basic and diluted earnings per share | $ 0.57 | $ 0.62 | $ 1.32 | $ 1.12 |
Adjustment [Member] | Self-Insurance Error Correction [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net income | $ 214,000 | $ 428,000 | ||
Basic and diluted earnings per share | $ 0.01 | $ 0.02 |