Weis Markets (WMK) 10-Q 3 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 24, 2016	Nov. 03, 2016
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 24, 2016
Document Fiscal Period Focus	Q3
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	Sep. 24, 2016	Dec. 26, 2015
Assets
Cash and cash equivalents	$ 12,548	$ 17,596
Marketable securities	81,257	91,629
SERP investment	10,649	9,079
Accounts receivable, net	73,422	88,083
Inventories	229,361	229,399
Prepaid expenses and other current assets	21,975	17,198
Income taxes recoverable	1,780	1,666
Total current assets	430,992	454,650
Property and equipment, net	793,803	738,985
Goodwill	48,362	35,162
Intangible and other assets, net	26,873	7,162
Total assets	1,300,030	1,235,959
Liabilities
Accounts payable	163,870	160,441
Accrued expenses	46,906	37,819
Accrued self-insurance	16,499	16,770
Deferred revenue, net	4,227	6,898
Total current liabilities	231,502	221,928
Postretirement benefit obligations	14,554	14,368
Accrued self-insurance	22,761	22,761
Deferred income taxes	94,949	97,020
Long-term debt	40,139	0
Other	1,804	8,135
Total liabilities	405,709	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	1,029,706	1,007,894
Accumulated other comprehensive income (Net of deferred taxes of $3,880 in 2016 and $3,323 in 2015)	5,523	4,761
Shareholders' equity before treasury stock	1,045,178	1,022,604
Treasury stock at cost, 6,149,364 shares	(150,857)	(150,857)
Total shareholders' equity	894,321	871,747
Total liabilities and shareholders' equity	$ 1,300,030	$ 1,235,959

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 24, 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	$ 3,880	$ 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		9 Months Ended
	Sep. 24, 2016	Sep. 26, 2015	Sep. 24, 2016	Sep. 26, 2015
Consolidated Statements of Income [Abstract]
Net sales	$ 742,986	$ 711,879	$ 2,211,622	$ 2,142,685
Cost of sales, including warehousing and distribution expenses	538,122	517,732	1,597,709	1,554,504
Gross profit on sales	204,864	194,147	613,913	588,181
Operating, general and administrative expenses	188,901	174,566	542,624	523,170
Income from operations	15,963	19,581	71,289	65,011
Investment income (loss) and interest expense	666	(422)	1,985	695
Income before provision for income taxes	16,629	19,159	73,274	65,706
Provision for income taxes	6,001	6,371	27,253	22,952
Net income	$ 10,628	$ 12,788	$ 46,021	$ 42,754
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	$ 0.90	$ 0.90
Basic and diluted earnings per share	$ 0.40	$ 0.48	$ 1.71	$ 1.59

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 24, 2016	Sep. 26, 2015	Sep. 24, 2016	Sep. 26, 2015
Consolidated Statements of Comprehensive Income [Abstract]
Net income	$ 10,628	$ 12,788	$ 46,021	$ 42,754
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 $184 and $168, respectively for the 13 Weeks Ended and $738 and $243, respectively for the 39 Weeks Ended)	(303)	(241)	1,019	(350)
Reclassification adjustment for gains included in net income (Net of deferred taxes of $70 and $0, respectively for the 13 Weeks Ended and $181 and $7, respectively for the 39 Weeks Ended)	(99)	0	(257)	(8)
Other comprehensive income (loss), net of tax	(402)	(241)	762	(358)
Comprehensive income, net of tax	$ 10,226	$ 12,547	$ 46,783	$ 42,396

Consolidated Statements of Com6

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 24, 2016	Sep. 26, 2015	Sep. 24, 2016	Sep. 26, 2015
Consolidated Statements of Comprehensive Income [Abstract]
Unrealized holding gains (losses) arising during period, deferred taxes	$ 184	$ 168	$ 738	$ 243
Reclassification adjustment for gains included in net income, deferred taxes	$ 70	$ 0	$ 181	$ 7

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 24, 2016	Sep. 26, 2015
Cash flows from operating activities:
Net income	$ 46,021	$ 42,754
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	48,867	45,942
Amortization	7,331	6,145
Loss (gain) on disposition of fixed assets	690	(26)
Gain on sale of marketable securities	(438)	(15)
Gain on sale of intangible assets	(200)	0
Deferred income taxes	(2,628)	(4,929)
Changes in operating assets and liabilities:
Inventories	3,333	8,483
Accounts receivable and prepaid expenses	10,783	1,969
Income taxes recoverable	(114)	612
Accounts payable and other liabilities	(2,675)	(4,533)
Income taxes payable	0	3,314
Other	970	824
Net cash provided by operating activities	111,940	100,540
Cash flows from investing activities:
Purchase of property and equipment	(96,659)	(64,874)
Proceeds from the sale of property and equipment	281	1,302
Purchase of marketable securities	(29,277)	(26,184)
Proceeds from maturities of marketable securities	835	1,851
Proceeds from the sale of marketable securities	42,516	7,067
Acquisitions	(47,547)	0
Purchase of intangible assets	(1,697)	(1,886)
Proceeds from the sale of intangible assets	200	0
Change in SERP investment	(1,570)	(741)
Net cash used in investing activities	(132,918)	(83,465)
Cash flows from financing activities:
Proceeds from long-term debt	40,139	0
Dividends paid	(24,209)	(24,209)
Net cash provided by (used in) financing activities	15,930	(24,209)
Net decrease in cash and cash equivalents	(5,048)	(7,134)
Cash and cash equivalents at beginning of year	17,596	22,986
Cash and cash equivalents at end of period	$ 12,548	$ 15,852

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Sep. 24, 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 definitive agreements to purchase the Food Lion Supermarket locations and the Nell’s Family Market location 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	9 Months Ended
	Sep. 24, 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 Financial 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.  In June 2016, the FASB issued ASU 2016-13 Financial Intruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in ASU 2016-13 replace the incurred loss impairment methodology in the current GAAP with requirements to reflect expected credit losses and require consideration of a broader range of reasonable and supportable information to form credit loss estimates. The amendments in ASU 2016-13 are effective for fiscal years beginning after December 15, 2019 including interim periods within those fiscal years. Early adoption is permitted as of the fiscal years beginning after December 15, 2018 including interim periods within those fiscal years. The Company is currently in the process of evaluating the impact of adoption of the ASU.  In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 attempts to reduce diversity in practice in how cash receipts and cash payments are presented and classified in the statement of cash flows. This ASU provides guidance on eight specific cash flow issues. The new guidance will be effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted including adoption in an interim period. The Company is currently in the process of evaluating the impact of adoption of the ASU.

Investments

Investments	9 Months Ended
	Sep. 24, 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 (loss) and interest expense” on the Company’s Consolidated Statements of Income.  Marketable securities, as of September 24, 2016 and December 26, 2015, consisted of:    Gross Gross  (dollars in thousands) Amortized Unrealized Unrealized Fair  September 24, 2016 Cost Holding Gains Holding Losses Value  Available-for-sale:  Level 1  Equity securities $ 1,198 $ 7,967 $ - $ 9,165  Level 2  Municipal bonds 70,656 1,457 (21) 72,092  $ 71,854 $ 9,424 $ (21) $ 81,257      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 September 24, 2016, were as follows:   Amortized Fair  (dollars in thousands) Cost Value  Available-for-sale:  Due within one year $ 4,584 $ 4,634  Due after one year through five years 27,238 27,846  Due after five years through ten years 14,281 15,059  Due after ten years 24,553 24,553  Equity securities 1,198 9,165  $ 71,854 $ 81,257  (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 (loss) and interest expense” on the Company’s Consolidated Statements of Income. The changes in the underlying liability to the associates are recorded in “Operating, general and administrative expenses.”

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	9 Months Ended
	Sep. 24, 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 1,019  Amounts reclassified from accumulated other comprehensive income (257)  Net current period other comprehensive income 762  Accumulated other comprehensive income balance as of September 24, 2016 $ 5,523   The following table sets forth the effects on net income of the amounts reclassified out of accumulated other comprehensive income for the periods ended September 24, 2016 and September 26, 2015.   Gains Reclassified from  Accumulated Other Comprehensive Income to the  Consolidated Statements of Income  13 Weeks Ended 39 Weeks Ended  (dollars in thousands) Location September 24, 2016 September 26, 2015 September 24, 2016 September 26, 2015  Unrealized gains on available-for-sale marketable securities  Investment income $ 169 $ - $ 438 $ 15  Provision for income taxes (70) - (181) (7)  Total amount reclassified, net of tax $ 99 $ - $ 257 $ 8 

Income Taxes

Income Taxes	9 Months Ended
	Sep. 24, 2016
Income Taxes [Abstract]
Income Taxes	(5) Income Taxes Cash paid for income taxes was $29.4 million and $24.0 million in the first thirty-nine weeks of 2016 and 2015, respectively.

Acquisitions

Acquisitions	9 Months Ended
	Sep. 24, 2016
Acquisitions [Abstract]
Acquisitions	(6) Acquisitions On August 1, 2016, the Company purchased five Mars Super Market stores located in Maryland. Weis Markets, Inc. acquired these locations and their operations in an effort to expand its presence in the Baltimore County region. The results of operations of the former Mars Super Market acquisition are included in the accompanying Consolidated Financial Statements from the date of acquisition. The five former Mars Super Market stores contributed $13.0 million to sales in the third quarter. The cash purchase price paid was $24.3 million for the property, equipment, inventories, prepaid expenses and goodwill related to this purchase. The Company accounted for this transaction as a business combination in accordance with the acquisition method. The Company recorded the preliminary fair values of the assets acquired at August 1, 2016. The fair value of intangibles was determined based on the discounted cash flow model and property and equipment were determined based on external appraisals, which will be finalized in the fourth quarter. Weis Markets, Inc. assumed two lease obligations in the acquisition of the former Mars Super Market stores and entered into two new lease agreements. Goodwill of $13.2 million has been recorded, based upon the expected benefits to be derived from new management business strategy and cost synergies. The full $13.2 million is deductible for tax purposes. The purchase price has been preliminarily allocated to the acquired assets as follows:      5 Mars Super Market Stores  (dollars in thousands) August 1, 2016  Inventories $ 1,267  Accounts receivable and prepaid expenses 248  Property and equipment 7,110  Goodwill 13,200  Intangibles - favorable leases, net 2,495  Total assets acquired $ 24,320  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 purchase is anticipated 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. As of September 24, 2016, the Company began operating ten of the 38 Food Lion, LLC locations in Maryland. The results of operations of the ten former Food Lion, LLC stores are included in the accompanying Consolidated Financial Statements from the date of each acquisition ( five stores on September 11, 2016 and five stores on September 18, 2016). The cash purchase price paid to date is $ 23.2 million , including $ 15.1 million of escrowed payments made towards the remaining twenty-eight stores, for the property, equipment, inventories, prepaid expenses and liabilities. Weis Markets, Inc. assumed six lease obligations and ownership of four locations with the first ten locations acquired. The ten acquired Food Lion, LLC locations contributed $2.0 million to sales in the third quarter. Regarding the remainder of the Food Lion, LLC acquisition the Company expects to assume twenty-four additional lease obligations and own four locations. The initial accounting for the business acquisition has not been finalized as the transaction has not fully closed. Twenty-eight additional stores are to be acquired in the fourth quarter and the Company will finalize the purchase price allocation in the fourth quarter upon completion of the transaction and external appraisals of assets acquired. The table below summarizes the progress of the acquisition and the preliminary allocation of the cash purchase price paid to date.      (dollars in thousands) 38 Food Lion Supermarket Stores  Preliminary purchase price allocation for cash paid on 10 stores  Inventories $ 1,958  Prepaid expenses 433  Accounts payable and other liabilities (66)  Property and equipment 5,719  Other 78  Total cash paid for 10 stores 8,122  Other long-term assets - Escrow payment made towards remaining 28 stores 15,105  Total cash paid as of September 24, 2016 $ 23,227 (6) Acquisitions (continued) On October 6, 2016, the Company announced plans to purchase the location, inventory, property and equipment of Nell’s Family Market in East Berlin, PA from C&S Wholesale Grocers. Exclusive of the inventory, the Company is expecting to pay approximately $8.7 million. The purchase is planned to be completed in the fourth quarter of 2016 and will increase the Company’s market presence in Adams County, PA.  Pro forma information for the completed acquisitions is not required, as such information is not material to the Compa n y’s financial statements.  The Company paid $7.9 million for the property and equipment related to the purchase of a store in Hanover, Pennsylvania on August 31, 2015 from C&S Wholesale Grocers. The purchase price was allocated between tangible and related intangible assets in accordance with our accounting policies for business combinations. No goodwill was recognized.

Long-Term Debt

Long-Term Debt	9 Months Ended
	Sep. 24, 2016
Long-Term Debt [Abstract]
Long-Term Debt	(7) Long-Term Debt On September 1, 2016 the Company entered into a Revolving Credit Agreement with Wells Fargo Bank, National Association (the Credit Agreement). The Credit Agreement provides for an unsecured revolving credit facility with an aggregate principal amount not to exceed $100.0 million. As of September 24, 2016, the Company has drawn upon $40.1 million of the available $100.0 million from the credit facility. The loan will bear interest on the outstanding principal amount at the one month LIBOR rate plus the applicable margin rate of 0.65% until its maturity on September 1, 2019 . The loan was used to fund the recent acquisitions and the Company’s working capital requirements. The only financial covenant in the credit facility requires the Company’s minimum EBITDA to be at least $75.0 million.  As of September 24, 2016, the Company had a $30 million line of credit with Branch Banking and Trust, of which $14.6 million was committed to outstanding letters of credit. The letters of credit are maintained primarily to support performance, payment, deposit or surety obligations of the Company. The Company does not anticipate drawing on any of them and has committed to not draw any additional amounts from the line of credit.

Significant Accounting Polici15

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 24, 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 definitive agreements to purchase the Food Lion Supermarket locations and the Nell’s Family Market location 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)	9 Months Ended
	Sep. 24, 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 Financial 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.  In June 2016, the FASB issued ASU 2016-13 Financial Intruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in ASU 2016-13 replace the incurred loss impairment methodology in the current GAAP with requirements to reflect expected credit losses and require consideration of a broader range of reasonable and supportable information to form credit loss estimates. The amendments in ASU 2016-13 are effective for fiscal years beginning after December 15, 2019 including interim periods within those fiscal years. Early adoption is permitted as of the fiscal years beginning after December 15, 2018 including interim periods within those fiscal years. The Company is currently in the process of evaluating the impact of adoption of the ASU.  In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 attempts to reduce diversity in practice in how cash receipts and cash payments are presented and classified in the statement of cash flows. This ASU provides guidance on eight specific cash flow issues. The new guidance will be effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted including adoption in an interim period. The Company is currently in the process of evaluating the impact of adoption of the ASU.

Investments (Tables)

Investments (Tables)	9 Months Ended
	Sep. 24, 2016
Investments [Abstract]
Marketable securities [Table Text Block]	Marketable securities, as of September 24, 2016 and December 26, 2015, consisted of:    Gross Gross  (dollars in thousands) Amortized Unrealized Unrealized Fair  September 24, 2016 Cost Holding Gains Holding Losses Value  Available-for-sale:  Level 1  Equity securities $ 1,198 $ 7,967 $ - $ 9,165  Level 2  Municipal bonds 70,656 1,457 (21) 72,092  $ 71,854 $ 9,424 $ (21) $ 81,257      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 September 24, 2016, were as follows:   Amortized Fair  (dollars in thousands) Cost Value  Available-for-sale:  Due within one year $ 4,584 $ 4,634  Due after one year through five years 27,238 27,846  Due after five years through ten years 14,281 15,059  Due after ten years 24,553 24,553  Equity securities 1,198 9,165  $ 71,854 $ 81,257 

Accumulated Other Comprehensi18

Accumulated Other Comprehensive Income (Tables)	9 Months Ended
	Sep. 24, 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 1,019  Amounts reclassified from accumulated other comprehensive income (257)  Net current period other comprehensive income 762  Accumulated other comprehensive income balance as of September 24, 2016 $ 5,523  
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 39 Weeks Ended  (dollars in thousands) Location September 24, 2016 September 26, 2015 September 24, 2016 September 26, 2015  Unrealized gains on available-for-sale marketable securities  Investment income $ 169 $ - $ 438 $ 15  Provision for income taxes (70) - (181) (7)  Total amount reclassified, net of tax $ 99 $ - $ 257 $ 8 

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	Sep. 24, 2016
Mars Super Market [Member]
Schedule of Assets Acquired [Table Text Block]	   5 Mars Super Market Stores  (dollars in thousands) August 1, 2016  Inventories $ 1,267  Accounts receivable and prepaid expenses 248  Property and equipment 7,110  Goodwill 13,200  Intangibles - favorable leases, net 2,495  Total assets acquired $ 24,320 
Food Lion, LLC [Member]
Schedule of Assets Acquired [Table Text Block]	   (dollars in thousands) 38 Food Lion Supermarket Stores  Preliminary purchase price allocation for cash paid on 10 stores  Inventories $ 1,958  Prepaid expenses 433  Accounts payable and other liabilities (66)  Property and equipment 5,719  Other 78  Total cash paid for 10 stores 8,122  Other long-term assets - Escrow payment made towards remaining 28 stores 15,105  Total cash paid as of September 24, 2016 $ 23,227 

Investments (Available For Sale

Investments (Available For Sale Securities) (Details) - USD ($) $ in Thousands	Sep. 24, 2016	Dec. 26, 2015
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost, Total	$ 71,854	$ 83,545
Gross Unrealized Holding Gains	9,424	8,150
Gross Unrealized Holding Losses	(21)	(66)
Fair Value	81,257	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	7,967	6,682
Gross Unrealized Holding Losses	0	0
Fair Value	9,165	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	70,656	82,347
Gross Unrealized Holding Gains	1,457	1,468
Gross Unrealized Holding Losses	(21)	(66)
Fair Value	$ 72,092	$ 83,749

Investments (Maturities of Mark

Investments (Maturities of Marketable Securities) (Details) - USD ($) $ in Thousands	Sep. 24, 2016	Dec. 26, 2015
Investments [Abstract]
Amortized Cost, Due within one year	$ 4,584
Fair Value, Due within one year	4,634
Amortized Cost, Due after one year through five years	27,238
Fair Value, Due after one year through five years	27,846
Amortized Cost, Due after five years through ten years	14,281
Fair Value, Due after five years through ten years	15,059
Amortized Cost, Due after ten years	24,553
Fair Value, Due after ten years	24,553
Amortized Cost, Equity securities	1,198
Fair Value, Equity securities	9,165
Available-for-sale Securities, Amortized Cost, Total	71,854	$ 83,545
Available-for-sale Securities, Fair Value, Total	$ 81,257	$ 91,629

Accumulated Other Comprehensi22

Accumulated Other Comprehensive Income (Schedule of Accumulated Other Comprehensive Income) (Details) - Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] $ in Thousands	9 Months Ended
	Sep. 24, 2016USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income balance, beginning balance	$ 4,761
Other comprehensive income before reclassifications	1,019
Amounts reclassified from accumulated other comprehensive income	(257)
Net current period other comprehensive income	762
Accumulated other comprehensive income balance, ending balance	$ 5,523

Accumulated Other Comprehensi23

Accumulated Other Comprehensive Income (Reclassifications out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 24, 2016	Sep. 26, 2015	Sep. 24, 2016	Sep. 26, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Provision for income taxes	$ (6,001)	$ (6,371)	$ (27,253)	$ (22,952)
Net income	10,628	12,788	46,021	42,754
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	169	0	438	15
Provision for income taxes	(70)	0	(181)	(7)
Net income	$ 99	$ 0	$ 257	$ 8

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 24, 2016	Sep. 26, 2015
Income Taxes [Abstract]
Income Taxes Paid	$ 29.4	$ 24

Acquisitions (Details)

Acquisitions (Details) $ in Thousands	Sep. 18, 2016store	Sep. 11, 2016store	Aug. 01, 2016USD ($)store	Aug. 31, 2015USD ($)	Dec. 31, 2016USD ($)store	Sep. 24, 2016USD ($)store	Sep. 24, 2016USD ($)store	Sep. 26, 2015USD ($)
Acquisitions [Line Items]
Purchase price							$ 47,547	$ 0
C&S Wholesale Grocers [Member]
Acquisitions [Line Items]
Purchase price				$ 7,900
Goodwill recognized				$ 0
Mars Super Market [Member]
Acquisitions [Line Items]
Number of stores acquired | store			5
Revenue recognized from newly acquired business						$ 13,000
Purchase price							24,300
Number of lease obligations assumed			2
Number of new lease agreements due to acquisition			2
Goodwill recognized			$ 13,200
Goodwill deductible for tax purposes			$ 13,200
Food Lion, LLC [Member]
Acquisitions [Line Items]
Number of stores to be acquired | store						38
Purchase price							23,227
Other long-term assets - Escrow payment made towards remaining 28 stores						$ 15,105	$ 15,105
Food Lion, LLC [Member] | Maryland [Member]
Acquisitions [Line Items]
Number of stores to be acquired | store						21
Number of stores acquired | store	5	5					10
Food Lion, LLC [Member] | Virginia [Member]
Acquisitions [Line Items]
Number of stores to be acquired | store						13
Food Lion, LLC [Member] | Delaware [Member]
Acquisitions [Line Items]
Number of stores to be acquired | store						4
First Ten Stores Acquired [Member]
Acquisitions [Line Items]
Number of owned stores acquired | store							4
Revenue recognized from newly acquired business						$ 2,000
Purchase price							$ 8,122
Number of lease obligations assumed							6
Scenario, Forecast [Member] | Nell's Family Market [Member]
Acquisitions [Line Items]
Purchase price					$ 8,700
Scenario, Forecast [Member] | Food Lion, LLC [Member]
Acquisitions [Line Items]
Number of stores remaining to be acquired | store					28
Expected number of additional lease obligations to be assumed | store					24
Expected number of additional owned stores to be acquired | store					4

Acquisitions (Schedule of Purch

Acquisitions (Schedule of Purchase Price Allocation - Mars Super Market Stores) (Detail) - USD ($) $ in Thousands	Sep. 24, 2016	Aug. 01, 2016	Dec. 26, 2015
Goodwill	$ 48,362		$ 35,162
Mars Super Market [Member]
Inventories		$ 1,267
Accounts receivable and prepaid expenses		248
Property and equipment		7,110
Goodwill		13,200
Intangibles - favorable lease, net		2,495
Total assets acquired		$ 24,320

Acquisitions (Schedule of Pur27

Acquisitions (Schedule of Purchase Price Allocation - Food Lion Supermarket Stores) (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 24, 2016	Sep. 26, 2015
Total cash paid	$ 47,547	$ 0
Food Lion, LLC [Member]
Other long-term assets - Escrow payment made towards remaining 28 stores	15,105
Total cash paid	23,227
First Ten Stores Acquired [Member]
Inventories	1,958
Prepaid expenses	433
Accounts payable and other liabilities	(66)
Property and equipment	5,719
Other	78
Total cash paid	$ 8,122

Long-Term Debt (Narrative) (Det

Long-Term Debt (Narrative) (Details) - USD ($) $ in Millions	Sep. 01, 2016	Sep. 24, 2016
Revolving Credit Facility [Member] | Wells Fargo Bank, N.A. [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 100
Line of Credit Facility, Fair Value of Amount Outstanding		$ 40.1
Debt Instrument, Maturity Date	Sep. 1, 2019
Debt Instrument, Covenant Description		The only financial covenant in the credit facility requires the Company's minimum EBITDA to be at least $75.0 million.
Revolving Credit Facility [Member] | Wells Fargo Bank, N.A. [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate		0.65%
Line of Credit [Member] | Branch Banking and Trust [Member]
Line of Credit Facility, Maximum Borrowing Capacity		$ 30
Line of Credit Facility, Fair Value of Amount Outstanding		$ 14.6