Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 29, 2018 | Feb. 14, 2019 | Jul. 14, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 29, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | FLO | ||
Entity Registrant Name | FLOWERS FOODS INC | ||
Entity Central Index Key | 1,128,928 | ||
Current Fiscal Year End Date | --12-29 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 210,900,500 | ||
Entity Public Float | $ 4,114,124,280 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 25,306 | $ 5,129 |
Accounts and notes receivable, net of allowances of $5,751 and $3,154, respectively | 287,482 | 280,050 |
Inventories: | ||
Raw materials | 44,502 | 41,710 |
Packaging materials | 21,868 | 19,638 |
Finished goods | 56,253 | 49,697 |
Inventories, net | 122,623 | 111,045 |
Spare parts and supplies | 65,076 | 61,330 |
Other | 43,237 | 49,637 |
Total current assets | 543,724 | 507,191 |
Property, Plant and Equipment: | ||
Land | 94,031 | 90,303 |
Buildings | 483,859 | 462,657 |
Machinery and equipment | 1,186,636 | 1,155,485 |
Furniture, fixtures and transportation equipment | 172,993 | 176,515 |
Construction in progress | 44,204 | 22,019 |
Property, plant and equipment, gross | 1,981,723 | 1,906,979 |
Less: accumulated depreciation | (1,237,876) | (1,174,953) |
Property, plant and equipment, net | 743,847 | 732,026 |
Notes Receivable from Independent Distributor Partners | 204,125 | 187,737 |
Assets Held for Sale | 6,606 | 15,323 |
Other Assets | 6,927 | 10,228 |
Goodwill | 545,379 | 464,777 |
Other Intangible Assets, net | 794,929 | 742,442 |
Total Assets | 2,845,537 | 2,659,724 |
Current Liabilities: | ||
Current maturities of long-term debt and capital lease obligations | 10,896 | 12,095 |
Accounts payable | 242,084 | 181,388 |
Other accrued liabilities | 147,359 | 200,468 |
Total current liabilities | 400,339 | 393,951 |
Long-Term Debt: | ||
Total long-term debt and capital lease obligations | 990,640 | 820,141 |
Other Liabilities: | ||
Post-retirement/post-employment obligations | 39,149 | 60,107 |
Deferred taxes | 102,658 | 82,976 |
Other long-term liabilities | 54,484 | 51,872 |
Total other long-term liabilities | 196,291 | 194,955 |
Commitments and Contingencies | ||
Stockholders’ Equity: | ||
Common stock — $.01 stated par value and $.001 current par value; 500,000,000 authorized shares; 228,729,585 issued shares | 199 | 199 |
Treasury stock — 17,834,378 and 18,203,381 shares, respectively | (231,648) | (235,493) |
Capital in excess of par value | 653,477 | 650,872 |
Retained earnings | 945,410 | 919,658 |
Accumulated other comprehensive loss | (109,171) | (84,559) |
Total stockholders’ equity | 1,258,267 | 1,250,677 |
Total Liabilities and Stockholders’ Equity | 2,845,537 | 2,659,724 |
Series A Preferred Stock | ||
Stockholders’ Equity: | ||
Preferred Stock, value | ||
Series B Preferred Stock | ||
Stockholders’ Equity: | ||
Preferred Stock, value |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Accounts and notes receivable, allowances | $ 5,751 | $ 3,154 |
Preferred stock, shares authorized | 1,000,000 | |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, current par value | $ 0.001 | $ 0.001 |
Common stock, authorized shares | 500,000,000 | 500,000,000 |
Common stock, shares issued | 228,729,585 | 228,729,585 |
Treasury stock, shares | 17,834,378 | 18,203,381 |
Series A Preferred Stock | ||
Preferred stock, par value | $ 100 | $ 100 |
Preferred stock, shares authorized | 200,000 | 200,000 |
Preferred stock, shares issued | 0 | 0 |
Series B Preferred Stock | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 800,000 | 800,000 |
Preferred stock, shares issued | 0 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | Jan. 14, 2017 | Dec. 29, 2018 | Oct. 06, 2018 | Jul. 14, 2018 | Dec. 30, 2017 | Oct. 07, 2017 | Jul. 15, 2017 | [1] | Dec. 31, 2016 | Oct. 08, 2016 | Jul. 16, 2016 | Apr. 21, 2018 | Apr. 22, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |||||||
Income Statement [Abstract] | |||||||||||||||||||||||
Sales | $ 880,667 | $ 923,449 | [1] | $ 941,283 | [1] | $ 873,623 | $ 932,822 | [1] | $ 926,639 | $ 1,206,453 | [1] | $ 1,187,649 | [1] | $ 3,951,852 | $ 3,920,733 | $ 3,926,885 | |||||||
Materials, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately below) | 467,155 | [2] | 485,680 | [1],[2] | 488,871 | [1],[2] | 456,895 | [2] | 476,264 | [1],[2] | 468,246 | [2] | 625,122 | [1],[2] | 608,068 | [1],[2] | 2,066,828 | 2,009,473 | 2,026,859 | ||||
Selling, distribution and administrative expenses | 1,507,256 | 1,510,015 | 1,469,382 | ||||||||||||||||||||
Depreciation and amortization | 144,124 | 146,719 | 140,869 | ||||||||||||||||||||
Restructuring and related impairment charges | 7,210 | 497 | 801 | 3,581 | 100,549 | 1,259 | 9,767 | 104,130 | |||||||||||||||
Gain on divestiture | $ (28,875) | (28,875) | (28,875) | ||||||||||||||||||||
Loss on inferior ingredients | 1,219 | (1,891) | 3,884 | 3,212 | |||||||||||||||||||
Multi-employer pension plan withdrawal costs | 18,268 | 2,322 | 2,322 | 18,268 | |||||||||||||||||||
Impairment of assets | 3,516 | 2,483 | 5,999 | 24,877 | |||||||||||||||||||
Income from operations | 212,344 | 161,003 | 264,898 | ||||||||||||||||||||
Interest expense | 35,686 | 36,557 | 34,905 | ||||||||||||||||||||
Interest income | (27,755) | (22,938) | (20,552) | ||||||||||||||||||||
Pension plan settlement loss | 1,148 | 930 | 1,035 | 1,619 | 3,030 | $ 173 | $ 1,832 | $ 4,641 | 4,668 | 7,781 | 4,649 | 6,646 | |||||||||||
Other components of net periodic pension and postretirement benefits credit | (529) | (6,558) | (5,638) | ||||||||||||||||||||
Income before income taxes | 197,161 | 149,293 | 249,537 | ||||||||||||||||||||
Income tax expense (benefit) | 40,001 | (827) | 85,761 | ||||||||||||||||||||
Net income | $ 20,841 | $ 39,630 | [1] | $ 45,442 | [1] | $ 78,533 | $ (33,571) | [1] | $ 44,740 | $ 51,247 | [1] | $ 60,418 | [1] | $ 157,160 | $ 150,120 | $ 163,776 | |||||||
Basic: | |||||||||||||||||||||||
Net income per common share | $ 0.10 | $ 0.19 | [1] | $ 0.22 | [1] | $ 0.37 | $ (0.16) | [1] | $ 0.21 | $ 0.24 | [1] | $ 0.29 | [1] | $ 0.74 | $ 0.72 | $ 0.79 | |||||||
Weighted average shares outstanding | 211,016 | 209,573 | 208,511 | ||||||||||||||||||||
Diluted: | |||||||||||||||||||||||
Net income per common share | $ 0.10 | $ 0.19 | [1] | $ 0.21 | [1] | $ 0.37 | $ (0.16) | [1] | $ 0.21 | $ 0.24 | [1] | $ 0.29 | [1] | $ 0.74 | $ 0.71 | $ 0.78 | |||||||
Weighted average shares outstanding | 211,632 | 210,435 | 210,354 | ||||||||||||||||||||
Cash dividends paid per common share | $ 0.7100 | $ 0.6700 | $ 0.6250 | ||||||||||||||||||||
[1] | As disclosed in Note 4, Financial Statement Revisions, the company reported cash receipts and payments for the repurchase and sale of territories and cash paid at issuance of notes receivable at net when these transactions should have been disaggregated. We concluded that the errors were not material to any of these prior periods that were impacted. The error resulted in an understatement of cash flows from operating activities and cash flows used in investing activities of $5.9 million, $12.1 million and $12.8 million, respectively, for the sixteen, twenty-eight, and forty-week amounts included in the first, second, and third quarters of fiscal 2017, respectively. These amounts were revised upon subsequent presentation of these financial statements. | ||||||||||||||||||||||
[2] | The company does not report gross margin. This line item presents our material, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately) under an alternative presentation. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 157,160 | $ 150,120 | $ 163,776 |
Pension and postretirement plans: | |||
Settlement loss | 5,816 | 3,072 | 4,087 |
Net loss for the period | (19,831) | (2,637) | (4,013) |
Amortization of prior service credit included in net income | 130 | 108 | 108 |
Amortization of actuarial loss included in net income | 4,022 | 3,603 | 4,206 |
Pension and postretirement plans, net of tax | (9,863) | 4,146 | 4,388 |
Derivative instruments: | |||
Net change in fair value of derivatives | 2,978 | (6,789) | 5,730 |
Loss reclassified to net income | 1,079 | 1,367 | 3,399 |
Derivative instruments, net of tax | 4,057 | (5,422) | 9,129 |
Other comprehensive income (loss), net of tax | (5,806) | (1,276) | 13,517 |
Comprehensive income | $ 151,354 | $ 148,844 | $ 177,293 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Balances at Jan. 02, 2016 | $ 1,243,082 | $ 199 | $ 636,501 | $ 877,817 | $ (96,800) | $ (174,635) |
Balances (in shares) at Jan. 02, 2016 | 228,729,585 | |||||
Balances, treasury shares at Jan. 02, 2016 | (16,463,137) | |||||
Net income | 163,776 | 163,776 | ||||
Derivative instruments, net of tax | 9,129 | 9,129 | ||||
Pension and postretirement plans, net of tax | 4,388 | 4,388 | ||||
Stock repurchases | (126,300) | (1,125) | $ (125,175) | |||
Stock repurchases (in shares) | (6,892,322) | |||||
Exercise of stock options | 27,631 | (4,323) | $ 31,954 | |||
Exercise of stock options (in shares) | 2,506,255 | |||||
Issuance of deferred stock awards | (1,411) | $ 1,411 | ||||
Issuance of deferred stock awards (in shares) | 111,868 | |||||
Amortization of share-based compensation awards | 18,772 | 18,772 | ||||
Income tax benefits related to share-based payments | 675 | 675 | ||||
Performance-contingent restricted stock awards issued (Note 19) | (4,519) | $ 4,519 | ||||
Performance-contingent restricted stock awards issued (in shares) | 424,787 | |||||
Issuance of deferred compensation | (114) | $ 114 | ||||
Issuance of deferred compensation (in shares) | 5,765 | |||||
Dividends paid on vested performance-contingent restricted stock and deferred share awards | (583) | (583) | ||||
Dividends paid | (130,490) | (130,490) | ||||
Balances at Dec. 31, 2016 | 1,210,080 | $ 199 | 644,456 | 910,520 | (83,283) | $ (261,812) |
Balances (in shares) at Dec. 31, 2016 | 228,729,585 | |||||
Balances, treasury shares at Dec. 31, 2016 | (20,306,784) | |||||
Net income | 150,120 | 150,120 | ||||
Derivative instruments, net of tax | (5,422) | (5,422) | ||||
Pension and postretirement plans, net of tax | 4,146 | 4,146 | ||||
Stock repurchases | (2,671) | $ (2,671) | ||||
Stock repurchases (in shares) | (140,135) | |||||
Exercise of stock options | 19,313 | (3,610) | $ 22,923 | |||
Exercise of stock options (in shares) | 1,773,336 | |||||
Issuance of deferred stock awards | (1,789) | $ 1,789 | ||||
Issuance of deferred stock awards (in shares) | 138,354 | |||||
Amortization of share-based compensation awards | 16,093 | 16,093 | ||||
Performance-contingent restricted stock awards issued (Note 19) | (4,240) | $ 4,240 | ||||
Performance-contingent restricted stock awards issued (in shares) | 328,947 | |||||
Issuance of deferred compensation | (38) | $ 38 | ||||
Issuance of deferred compensation (in shares) | 2,901 | |||||
Dividends paid on vested performance-contingent restricted stock and deferred share awards | (553) | (553) | ||||
Dividends paid | (140,429) | (140,429) | ||||
Balances at Dec. 30, 2017 | $ 1,250,677 | $ 199 | 650,872 | 919,658 | (84,559) | $ (235,493) |
Balances (in shares) at Dec. 30, 2017 | 228,729,585 | |||||
Balances, treasury shares at Dec. 30, 2017 | (18,203,381) | (18,203,381) | ||||
Net income | $ 157,160 | 157,160 | ||||
Derivative instruments, net of tax | 4,057 | 4,057 | ||||
Pension and postretirement plans, net of tax | (9,863) | (9,863) | ||||
Stock repurchases | (2,489) | $ (2,489) | ||||
Stock repurchases (in shares) | (120,147) | |||||
Exercise of stock options | 791 | (151) | $ 942 | |||
Exercise of stock options (in shares) | 72,785 | |||||
Issuance of deferred stock awards | (1,206) | $ 1,206 | ||||
Issuance of deferred stock awards (in shares) | 92,935 | |||||
Amortization of share-based compensation awards | 8,148 | 8,148 | ||||
Performance-contingent restricted stock awards issued (Note 19) | (4,062) | $ 4,062 | ||||
Performance-contingent restricted stock awards issued (in shares) | 313,906 | |||||
Issuance of deferred compensation | (124) | $ 124 | ||||
Issuance of deferred compensation (in shares) | 9,524 | |||||
Reclassification of stranded income tax effects to retained earnings(Note 2) | 18,806 | (18,806) | ||||
Dividends paid on vested performance-contingent restricted stock and deferred share awards | (498) | (498) | ||||
Dividends paid | (149,716) | (149,716) | ||||
Balances at Dec. 29, 2018 | $ 1,258,267 | $ 199 | $ 653,477 | $ 945,410 | $ (109,171) | $ (231,648) |
Balances (in shares) at Dec. 29, 2018 | 228,729,585 | |||||
Balances, treasury shares at Dec. 29, 2018 | (17,834,378) | (17,834,378) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Statement Of Stockholders Equity [Abstract] | |||
Cash dividends paid per common share | $ 0.7100 | $ 0.6700 | $ 0.6250 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Cash flows provided by (disbursed for) operating activities: | |||
Net income | $ 157,160 | $ 150,120 | $ 163,776 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Restructuring and related impairment charges | 5,593 | 69,601 | |
Gain on divestiture | (28,875) | ||
Depreciation and amortization | 144,124 | 146,719 | 140,869 |
Impairment of assets | 5,999 | 24,877 | |
Stock-based compensation | 8,148 | 16,093 | 18,761 |
Loss reclassified from accumulated other comprehensive income to net income | 1,301 | 2,080 | 5,307 |
Deferred income taxes | 21,657 | (61,306) | (14,457) |
Provision for inventory obsolescence | 740 | 1,684 | 1,324 |
Allowances for accounts receivable | 6,963 | 4,215 | 3,365 |
Pension and postretirement plans (benefit) expense | 8,474 | (897) | 2,238 |
Other | (4,839) | (6,203) | (106) |
Qualified pension plan contributions | (40,700) | (1,605) | (1,000) |
Changes in operating assets and liabilities, net of acquisitions and disposals: | |||
Accounts receivable, net | (8,278) | (11,762) | (7,888) |
Inventories, net | (8,424) | (7,801) | (1,526) |
Hedging activities, net | 2,725 | (15,727) | 13,592 |
Other assets | 5,120 | (12,557) | (3,441) |
Accounts payable | 60,863 | 10,840 | (519) |
Other accrued liabilities | (70,733) | 42,770 | 11,390 |
Net cash provided by operating activities | 295,893 | 297,389 | 356,562 |
Cash flows provided by (disbursed for) investing activities: | |||
Purchases of property, plant and equipment | (99,422) | (75,232) | (101,727) |
Repurchase of independent distributor territories | (3,128) | (6,460) | (8,871) |
Cash paid at issuance of notes receivable | (28,454) | (25,566) | (8,577) |
Principal payments from notes receivable | 26,883 | 24,875 | 22,272 |
Acquisition of businesses, net of cash acquired | (200,174) | ||
Proceeds from sale of mix plant | 41,230 | ||
Proceeds from sales of property, plant and equipment | 1,913 | 3,935 | 17,667 |
Other investing activities | 577 | 1,823 | 2,522 |
Net cash disbursed for investing activities | (301,805) | (35,395) | (76,714) |
Cash flows provided by (disbursed for) financing activities: | |||
Dividends paid, including dividends on share-based payment awards | (150,214) | (140,982) | (131,073) |
Exercise of stock options | 791 | 19,313 | 27,631 |
Payments for debt issuance costs | (100) | (729) | (4,380) |
Stock repurchases | (2,489) | (2,671) | (126,300) |
Change in bank overdrafts | 4,851 | (14,206) | 1,914 |
Proceeds from debt borrowings | 200,900 | 611,900 | 2,090,492 |
Debt and capital lease obligation payments | (27,650) | (735,900) | (2,146,100) |
Net cash provided by (disbursed for) financing activities | 26,089 | (263,275) | (287,816) |
Net increase (decrease) in cash and cash equivalents | 20,177 | (1,281) | (7,968) |
Cash and cash equivalents at beginning of period | 5,129 | 6,410 | 14,378 |
Cash and cash equivalents at end of period | 25,306 | 5,129 | 6,410 |
Schedule of non cash investing and financing activities: | |||
Capital and right-to-use lease obligations | 1,977 | 3,337 | 15,622 |
Distributor routes sold with deferred gains, net | 8,770 | 9,707 | 5,213 |
Increase in property, plant and equipment from financing | 4,855 | ||
Purchase of property, plant and equipment included in accounts payable | 901 | 2,991 | 5,203 |
Cash paid during the period for: | |||
Interest | 32,747 | 34,196 | 26,897 |
Income taxes paid, net of refunds of $40, $236 and $12,212, respectively | 13,697 | 71,996 | 84,108 |
Executive Deferred Compensation Plan | |||
Schedule of non cash investing and financing activities: | |||
Issuance of executive deferred compensation plan common stock | 124 | 38 | 114 |
Distributor Notes Receivable | |||
Schedule of non cash investing and financing activities: | |||
Issuance of notes receivable on new distribution territories, net | $ 45,528 | $ 60,594 | $ 23,352 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Statement Of Cash Flows [Abstract] | |||
Income tax refunds | $ 40 | $ 236 | $ 12,212 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Note 1. Basis of Presentation General. The accompanying Consolidated Financial Statements of Flowers Foods, Inc. (the “company”, “Flowers Foods”, “Flowers”, “us”, “we”, or “our”) have been prepared by the company’s management in accordance with generally accepted accounting principles in the United States of America (“GAAP”). Flowers Foods is one of the largest producers and marketers of bakery products in the United States. The company currently consists of two business segments: direct-store-delivery (“DSD Segment”) and warehouse delivery (“Warehouse Segment”). The DSD Segment focuses on the production and marketing of bakery products throughout the East, South, Southwest, West Coast, and select markets in the Midwest, Nevada, and Colorado. The Warehouse Segment produces snack cakes, breads and rolls that are shipped both fresh and frozen to national retail, foodservice, vending, and co-pack customers through their warehouse channels. On August 10, 2016, we announced the launch of Project Centennial, a comprehensive business and operational review. We are evaluating opportunities to enhance revenue growth, streamline operations, improve efficiencies, and make investments that strengthen our competitive position and improve margins over the long term. We began Project Centennial with an evaluation of our brands, product mix, and organizational structure. We then developed strategic priorities to help us capitalize on retail and consumer changes. On May 3, 2017, the company announced an enhanced organizational structure designed to provide greater focus on the company’s strategic objectives, emphasize brand growth and innovation in line with a national branded food company, drive enhanced accountability, reduce costs, and strengthen long-term strategy. The new organizational structure establishes two business units (“BUs”), Fresh Bakery and Snacking/Specialty, and realigns key leadership roles. The new structure also provides for centralized marketing, sales, supply chain, shared-services/administrative, and corporate strategy functions, each with clearly defined roles and responsibilities. The transition to the new structure will be completed early in fiscal 2019. Management will continue to review financial information for the DSD Segment and Warehouse Segment until the new organizational structure is fully implemented. Based on the preliminary segment reporting analysis, we expect changes to the organization structure to have a significant impact on our segment reporting. We expect to complete our segment reporting analysis in the first quarter of fiscal 2019. See Note 6, Restructuring Activities |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Basis of Consolidation . The Consolidated Financial Statements include the accounts of the company and its wholly-owned subsidiaries. Intercompany transactions and balances are eliminated in consolidation. Use of Estimates . The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Fiscal Year End . The company operates on a 52-53 week fiscal year ending the Saturday nearest December 31. Fiscal 2018, Fiscal 2017, and Fiscal 2016 consisted of 52 weeks. Fiscal 2019 will consist of 52 weeks. Revenue Recognition . Revenue is recognized when obligations under the terms of a contract with our customers are satisfied. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. The company records both direct and estimated reductions to gross revenue for customer programs and incentive offerings at the time the incentive is offered or at the time of revenue recognition for the underlying transaction that results in progress by the customer towards earning the incentive. These allowances include price promotion discounts, coupons, customer rebates, cooperative advertising, and product returns. Consideration payable to a customer is recognized at the time control transfers and is a reduction to revenue. The recognition of costs for promotion programs involves the use of judgment related to performance and redemption estimates. Estimates are made based on historical experience and other factors. Price promotion discount expense is recorded as a reduction to gross sales when the discounted product is sold to the customer. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in our selling, distribution, and administration expenses line item on the Consolidated Statements of Income. The company’s production facilities deliver products to independent distributor partners (“IDP” or “IDPs”), who sell and deliver those products to outlets of retail accounts that are within the IDPs’ defined geographic territory. The IDPs sell products using either scan-based trading (“SBT”) technology, authorized charge tickets, or cash sales. SBT technology allows the retailer to take ownership of our products when the consumer purchases the products rather than at the time they are delivered to the retailer. Control of the inventory does not transfer upon delivery to the retailer because the company controls the risks and rights until the product is scanned at the reseller’s register. Each of the company’s products is considered distinct because the resellers expect each item to be a performance obligation. The company’s performance obligations are satisfied at the point in time when the end consumer purchases the product because each product is considered a separate performance obligation. Consequently, revenue is recognized at a point in time for each scanned item. The company has concluded that we are the principal. In fiscal years 2018, 2017, and 2016, the company recorded $1.7 billion, $1.4 billion, and $1.3 billion, respectively, in sales through SBT. SBT is utilized primarily in certain national and regional retail accounts (“SBT Outlet”). Generally, revenue is not recognized by the company upon delivery of our products by the company to the IDP or upon delivery of our products by the IDP to a SBT Outlet, but when our products are purchased by the end consumer. Product inventory in the SBT Outlet is reflected as inventory on the Consolidated Balance Sheets. The IDP performs a physical inventory of products at each SBT Outlet weekly and reports the results to the company. The inventory data submitted by the IDP for each SBT Outlet is compared with the product delivery data. Product delivered to a SBT Outlet that is not recorded in the product delivery data has been purchased by the consumer/customer of the SBT Outlet and is recorded as sales revenue by the company. Non-SBT sales are classified as either authorized charged sales or cash sales. The company provides marketing support to the IDP for authorized charged sales, but does not provide marketing support to the IDP for cash sales. Marketing support includes providing a dedicated account representative, resolving complaints, and accepting responsibility for product quality which collectively define how to manage the relationship. Revenue is recognized at a point in time for non-SBT sales. The company retains inventory risk, establishes negotiated special pricing, and fulfills the contractual obligations for authorized charged sales. The company is the principal, the IDP is the agent, and the reseller is the customer. Revenue is recognized for authorized charge sales when the product is delivered to the customer because the company has satisfied its performance obligations. Cash sales occur when the IDP is the end customer. The IDP maintains accounts receivable, inventory and fulfillment risk for cash sales. The IDP also controls pricing for the resale of cash sale products. The company is the principal and the IDP is the customer, and an agent relationship does not exist. The discount paid to the IDP for cash sales is recorded as a reduction to revenue. Revenue is recognized for cash sales when the company’s products are delivered to the IDP because the company has satisfied its performance obligations. Sales in the Warehouse Segment are under contracts and include a formal ordering system. Orders are placed primarily using purchase orders (“PO”) or electronic data interchange information. Each PO, together with the applicable master supply agreement, is determined to be a separate contract. Product is delivered via contract carriers engaged by either the company or the customer with shipping terms provided in the PO. Each unit sold, for all product categories, is a separate performance obligation. Each unit is considered distinct because the customer can benefit from each unit by selling each one separately to the end consumer. Additionally, each unit is separately identifiable in the PO. Products are delivered either freight-on-board (“FOB”) shipping or destination. The company’s right to payment is at the time our products are obtained from our warehouse for FOB shipping deliveries. The right to payment for FOB destination deliveries occurs after the products are delivered to the customer. Revenue is recognized at a point in time when control transfers. The company pays commissions to brokers who obtain contracts with customers. Commissions are paid on the total value of the contract, which is determined at contract inception and is based on expected future activity. Broker commissions will not extend beyond a one-year term because each product is considered a separate order in the PO. The company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the company otherwise would have recognized is one year or less. These costs are included in our selling, distribution, and administrative expenses line item on the Consolidated Statements of Income. The company disaggregates revenue by sales channel for each reportable segment. Our sales channels are branded retail, store branded retail, and non-retail and other. The non-retail and other channel includes foodservice, restaurants, institutional, vending, thrift stores, and contract manufacturing. The company does not disaggregate revenue by geographic region, customer type, or contract type. All revenues are recognized at a point in time. Sales by sales channel category in each reportable segment are as follows for fiscal years 2018, 2017, and 2016 (amounts in thousands): Fiscal 2018 Fiscal 2017 Fiscal 2016 Total DSD Segment Warehouse Segment Total DSD Segment Warehouse Segment Total DSD Segment Warehouse Segment Branded retail $ 2,335,831 $ 2,188,638 $ 147,193 $ 2,303,301 $ 2,149,451 $ 153,850 $ 2,283,526 $ 2,114,142 $ 169,384 Store branded retail 597,147 483,001 114,146 582,738 471,199 111,539 582,280 464,456 117,824 Non-retail and other 1,018,874 668,408 350,466 1,034,694 697,913 336,781 1,061,079 705,579 355,500 Total $ 3,951,852 $ 3,340,047 $ 611,805 $ 3,920,733 $ 3,318,563 $ 602,170 $ 3,926,885 $ 3,284,177 $ 642,708 Cash and Cash Equivalents . The company considers deposits in banks, certificates of deposits, and short-term investments with original maturities of three months or less to be cash and cash equivalents. Accounts and Notes Receivable . Accounts and notes receivable consists of trade receivables, current portions of distributor notes receivable, and miscellaneous receivables. The company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments for trade receivables, IDP notes receivable, and miscellaneous receivables. Bad debts are charged to this reserve after all attempts to collect the balance are exhausted. If the financial condition of the company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. In determining the past due or delinquent status of a customer, the aged trial balance is reviewed on a weekly basis by sales management and generally any accounts older than seven weeks are considered delinquent. Activity in the allowance for doubtful accounts is as follows (amounts in thousands): Beginning Balance Charged to Expense Write-Offs and Other Ending Balance Fiscal 2018 $ 3,154 $ 6,963 $ 4,366 $ 5,751 Fiscal 2017 $ 1,703 $ 4,215 $ 2,764 $ 3,154 Fiscal 2016 $ 1,341 $ 3,365 $ 3,003 $ 1,703 The amounts charged to expense for bad debts in the table above are reported as adjustments to reconcile net income to net cash provided by operating activities in the Consolidated Statements of Cash Flows. The write-offs and other column represents the amounts that are used to reduce the gross accounts and notes receivable at the time the balance due from the customer is written-off. Walmart/Sam’s Club is our only customer with a balance greater than 10% of outstanding trade receivables. Their percentage of trade receivables was 17.8% and 17.5%, on a consolidated basis, as of December 29, 2018 and December 30, 2017, respectively. No other customer accounted for greater than 10% of the company’s outstanding receivables. Concentration of Credit Risk . The company performs periodic credit evaluations and grants credit to customers, who are primarily in the grocery and foodservice markets, and generally does not require collateral. Our top 10 customers in fiscal years 2018, 2017 and 2016 accounted for 50.3%, 48.5% and 46.8% of sales, respectively Percent of Sales DSD Segment Warehouse Segment Total Fiscal 2018 17.9 % 2.4 % 20.3 % Fiscal 2017 17.6 % 2.4 % 20.0 % Fiscal 2016 17.0 % 2.6 % 19.6 % Walmart/Sam’s Club is the only customer to account for greater than 10% of the company’s sales. Inventories . Inventories at December 29, 2018 and December 30, 2017 are valued at net realizable value. Costs for raw materials and packaging are recorded at moving average cost. Finished goods inventories are valued at average costs. The company will write down inventory to net realizable value for estimated unmarketable inventory equal to the difference between the cost of the inventory and the estimated net realizable value for situations when the inventory is impaired by damage, deterioration, or obsolescence. Activity in the inventory reserve allowance is as follows (amounts in thousands): Beginning Balance Charged to Expense Write-Offs and Other Ending Balance Fiscal 2018 $ 673 $ 740 $ 1,270 $ 143 Fiscal 2017 $ 1,090 $ 1,684 $ 2,101 $ 673 Fiscal 2016 $ 238 $ 1,324 $ 472 $ 1,090 The amounts charged to expense for inventory loss in the table above are reported as adjustments to reconcile net income to net cash provided by operating activities in the Consolidated Statements of Cash Flows. The write-offs and other column represents the amounts that are used to reduce gross inventories. Shipping Costs . Shipping costs are included in the selling, distribution and administrative line item of the Consolidated Statements of Income. For fiscal years 2018, 2017, and 2016, shipping costs were $975.1 million, $888.1 million, and $855.1 million, respectively, including the costs paid to IDPs. Spare Parts and Supplies . The company maintains inventories of spare parts and supplies, which are used for repairs and maintenance of its machinery and equipment. These spare parts and supplies allow the company to react quickly in the event of a mechanical breakdown. These parts are valued using the moving average method and are expensed as the part is used. Periodic physical inventories of the parts are performed, and the value of the parts is adjusted for any obsolescence or difference from the physical inventory count. Assets Held for Sale . Assets to be sold are classified as held for sale in the period all the required criteria are met. The company generally has three types of assets classified as held for sale. These include distribution rights, plants and depots/warehouses, and other equipment. See Note 9, , for these amounts by classification. Though under no obligation to do so, the company repurchases distribution rights from and sells distribution rights to IDPs from time to time. At the time the company purchases distribution rights from an IDP, the fair value purchase price of the distribution right is recorded as “Assets Held for Sale”. Upon the sale of the distribution rights to a new IDP, the new distributor franchisee/owner may choose how he/she desires to finance the purchase of the business. If the new distributor chooses to use optional financing via a company-related entity, a note receivable of up to ten years is recorded for the financed amount with a corresponding credit to assets held for sale to relieve the carrying amount of the territory. Any difference between the selling price of the business and the distribution rights’ carrying value, if any, is recorded as a gain or a loss in selling, distribution and administrative expenses because the company considers the IDP activity a cost of distribution. This gain is recognized over the term of the outstanding notes receivable as payments are received from the IDP. In instances where a distribution right is sold for less than its carrying value, a loss is recorded at the date of sale and any impairment of a distribution right held for sale is recorded at such time when the impairment occurs. The deferred gains were $35.7 million and $34.7 million at December 29, 2018 and December 30, 2017, respectively, and are recorded in other short and long-term liabilities on the Consolidated Balance Sheet. The company recorded net gains of $4.4 million during fiscal 2018, $3.3 million during fiscal 2017, and $3.1 million during fiscal 2016 related to the sale of distribution rights as a component of selling, distribution and administrative expenses. Property, Plant and Equipment and Depreciation . Property, plant and equipment is stated at cost. Depreciation expense is computed using the straight-line method over the estimated useful lives of the depreciable assets. Certain equipment held under capital leases of $35.4 million and $42.8 million at December 29, 2018 and December 30, 2017, respectively, is classified as property, plant and equipment and the related obligations are recorded as liabilities. Depreciation of assets held under capital leases is included in depreciation and amortization expense. Total accumulated depreciation for assets held under capital leases was $13.4 million and $15.7 million at December 29, 2018 and December 30, 2017, respectively. The table below presents the range of estimated useful lives by property, plant and equipment class. Useful life term (years) Asset Class Low High Buildings 10 40 Machinery and equipment 3 25 Furniture, fixtures and transportation equipment 3 15 Property under capital leases and leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the leased property. Depreciation expense for fiscal years 2018, 2017, and 2016 was as follows (amounts in thousands): Depreciation expense Fiscal 2018 $ 118,232 Fiscal 2017 $ 119,445 Fiscal 2016 $ 116,367 The company had no capitalized interest during fiscal 2018, 2017, and 2016. The cost of maintenance and repairs is charged to expense as incurred. Upon disposal or retirement, the cost and accumulated depreciation of assets are eliminated from the respective accounts. Any gain or loss is reflected in the company’s income from operations and is included in adjustments to reconcile net income to net cash provided by operating activities in the Consolidated Statements of Cash Flows. Segments . The company’s segments are currently separated primarily by the different delivery methods each segment uses for their respective product deliveries. The DSD Segment’s products are delivered fresh to customers through a network of IDPs who are incentivized to grow sales and to build equity in their distributorships. The Warehouse Segment ships fresh and frozen products to customers’ warehouses nationwide. Our bakeries fall into either the DSD Segment or Warehouse Segment depending on the primary method of delivery used to sell that bakery’s products. The bakeries within each segment produce products that are sold externally and internally. Internal sales are to bakeries within the producing bakery’s segment or to the other segment. Sales between bakeries are transferred at standard cost. Impairment of Long-Lived Held and Used Assets . The company determines whether there has been an impairment of long-lived held and used assets when indicators of potential impairment are present. We consider historical performance and future estimated results in our evaluation of impairment. If facts and circumstances indicate that the cost of any long-lived held and used assets may be impaired, an evaluation of recoverability would be performed. If an evaluation is required, the estimated future gross, undiscounted cash flows associated with the asset would be compared to the asset’s carrying amount to determine if a write-down to market value is required. In fiscal 2018, we recorded asset impairment charges for long-lived held and used assets of $7.3 million. Total impairments, and the line item to which each item is recorded in our Consolidated Statements of Income, are presented below (amounts in thousands): Impairment of assets line item Unallocated corporate costs DSD Segment Warehouse Segment Total Property, plant and equipment $ 3,516 $ — $ — $ 3,516 Impairment of assets $ 3,516 $ — $ — $ 3,516 Restructuring and related impairment charges line item Unallocated corporate costs DSD Segment Warehouse Segment Total Plant closings $ — $ 2,952 $ 204 $ 3,156 Line closings — — 661 661 Impairment of assets $ — $ 2,952 $ 865 $ 3,817 A property, plant and equipment impairment was recognized in the fourth quarter of fiscal 2018 when a construction in process asset was not ultimately placed into service. On November 6, 2018, the company announced the closure of a bakery in Brattleboro, Vermont. The bakery was closed during the fourth quarter of fiscal 2018 and consisted of a $2.5 million charge to the DSD Segment for property, plant, and equipment. An additional $0.5 million impairment charge to the DSD Segment was related to an idle plant that has been classified as held for sale. The remaining $0.2 million of plant closings relates to final charges for the Winston-Salem plant, discussed below, in the Warehouse Segment. During the fourth quarter of fiscal 2018, the company recognized $0.7 million for closing various lines at certain Warehouse Segment plants as a result of the supply chain analysis. In fiscal 2017, we recorded asset impairment charges of $3.4 million for the closure of a Warehouse Segment snack cake plant in Winston-Salem, North Carolina. The closure was related to Project Centennial and is recorded in the restructuring and related impairment charges line item in our Consolidated Statements of Income. See Note 6, Restructuring Activities In fiscal 2016, we recorded asset impairment charges totaling $9.9 million at the time certain idle assets were reclassified as held for sale. See Note 9, Assets Held for Sale Impairment of Other Intangible Assets . The company accounts for other intangible assets recognized in a purchase business combination at fair value. These intangible assets can be either finite or indefinite-lived depending on the facts and circumstances at acquisition. Finite-lived intangible assets are reviewed for impairment when facts and circumstances indicate that the cost of any finite-lived intangible asset may be impaired. This recoverability test is based on an undiscounted cash flows expected to result from the company’s use and eventual disposition of the asset. If these cash flows are sufficient to recover the carrying value over the useful life there is no impairment. Amortization of finite-lived intangible assets occurs over their estimated useful lives. The amortization periods, at origination, range from two years to forty years for these assets. The attribution methods we primarily use are the sum-of-the-year digits for customer relationships and straight-line for other intangible assets. These finite-lived intangible assets generally include trademarks, customer relationships, non-compete agreements, distributor relationships, and supply agreements. Identifiable intangible assets that are determined to have an indefinite useful economic life are not amortized. Indefinite-lived intangible assets are tested for impairment, at least annually, using a one-step fair value based approach or when certain indicators of potential impairment are present. We have elected not to perform the qualitative approach. We also reassess the indefinite-lived classification to determine if it is appropriate to reclassify these assets as finite-lived assets that will require amortization. We consider historical performance and future estimated results in our evaluation of impairment. If facts and circumstances indicate that the cost of any indefinite-lived intangible assets may be impaired, an evaluation of the fair value of the asset is compared to its carrying amount. If the carrying amount exceeds the fair value, an impairment charge is recorded for the difference. We use the multi-period excess earnings and relief from royalty methods to value these indefinite-lived intangible assets. Fair value is estimated using the future gross, discounted cash flows associated with the asset using the following four material assumptions: (a) discount rate; (b) long-term sales growth rates; (c) forecasted operating margins (not applicable to the relief from royalty method); and (d) market multiples. The method used for impairment testing purposes is consistent with the valuation method employed at acquisition of the intangible asset. These indefinite-lived intangible assets are trademarks acquired in a purchase business combination. During fiscal 2017, the company recorded impairment charges of $66.2 million for certain trademarks impacted by the brand rationalization study that was performed in conjunction with Project Centennial. See Note 6, Restructuring Activities During fiscal 2016, the company recorded an impairment charge of $15.0 million on certain trademarks the company no longer intends to grow nationally. These brands will continue to be produced and sold in their respective markets. This impairment was recorded in the impairment of assets line item of our Consolidated Statements of Income. The company evaluates useful lives for finite-lived intangible assets to determine if facts or circumstances arise that may impact the estimates of useful lives assigned and the remaining amortization duration. Indefinite-lived intangible assets that are determined to have a finite useful life are tested for impairment as an indefinite-lived intangible asset prior to commencing amortization. We determined the impaired assets should be reclassified from indefinite-lived to finite-lived with an attribution period covering our estimate of the assets’ useful life. These intangible assets were assigned a useful life ranging from thirty years to forty years. Future adverse changes in market conditions or poor operating results of underlying intangible assets could result in losses or an inability to recover the carrying value of the intangible assets that may not be reflected in the assets’ current carrying values, thereby possibly requiring an impairment charge in the future. See Note 10, Goodwill and Other Intangible Assets Goodwill . The company accounts for goodwill in a purchase business combination as the excess of the cost over the fair value of net assets acquired. Goodwill is assigned to specific reporting units for purposes of the annual impairment test. The company operates in two segments. Our bakeries are the components within our operating segments. The bakeries are aggregated into the two operating segments because of reciprocal baking arrangements for plants within each operating segment (i.e., these are aggregated because of similar economic characteristics). Our reportable segments (DSD Segment and Warehouse Segment) are the same as our operating segments. The reporting unit was determined by the acquisition’s primary delivery method. The company tests goodwill for impairment on an annual basis (or an interim basis if a triggering event occurs that indicates the fair value of a reporting unit may be below its carrying value) using a two-step method. This analysis is performed for both of our segments. We have elected not to perform the qualitative approach. The company conducts this review during the fourth quarter of each fiscal year absent any triggering events. We use the following four material assumptions in our fair value analysis: (a) weighted average cost of capital; (b) long-term sales growth rates; (c) forecasted operating margins; and (d) market multiples. No impairment resulted from the annual review performed in fiscal years 2018, 2017, or 2016. See Note 10, , for additional disclosure. Derivative Financial Instruments . The disclosure requirements for derivatives and hedging provide investors with an enhanced understanding of: (a) how and why an entity uses derivative instruments and related hedged items, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the company’s objectives and strategies for using derivative instruments and related hedged items, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments and related hedged items, and disclosures about credit-risk-related contingent features in derivative instruments and related hedged items. The company’s objectives in using commodity derivatives are to add stability to materials, supplies, labor, and other production costs and to manage its exposure to certain commodity price movements. To accomplish this objective, the company uses commodity futures as part of its commodity risk management strategy. The company’s commodity risk management programs include hedging price risk for wheat, soybean oil, corn, and natural gas primarily using futures contacts. Commodity futures designated as cash flow hedges involve fixing the price on a fixed volume of a commodity on a specified date. The commodity futures are given up to third parties near maturity to price the physical goods (e.g. flour, sweetener, corn, etc.) required as part of the company’s production. As required, the company records all derivatives on the Consolidated Balance Sheets at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedged item with the earnings effect of the hedged forecasted transactions in a cash flow hedge. The company may enter into derivative contracts that are intended to economically hedge certain of its risks, even though hedge accounting does not apply or the company elects not to apply hedge accounting. For derivatives designated and that qualify as cash flow hedges of commodity price risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income (loss) (“AOCI”) and subsequently reclassified in the period during which the hedged transaction affects earnings within the same income statement line item as the earnings effect of the hedged transaction. All our commodity derivatives at December 29, 2018 qualified for hedge accounting. Before the company adopted new guidance beginning with fiscal 2018, during fiscal years 2017, and 2016 there was no material income or expense recorded due to ineffectiveness in current earnings due to changes in the fair value of our commodity hedges. The company recognized $0.1 million of ineffectiveness in the selling, distribution and administrative expenses line item of our Consolidated Statements of Income during fiscal year 2016 at the settlement of a treasury lock for an interest rate hedge. See Note 12, Derivative Financial Instruments The company routinely transfers amounts from AOCI to earnings as transactions for which cash flow hedges were held occur and impact earnings. Significant situations which do not routinely occur that could cause transfers from AOCI to earnings are the cancellation of a forecasted transaction for which a derivative was held as a hedge or a significant and material reduction in volume used of a hedged ingredient such that the company is overhedged and must discontinue hedge accounting. During fiscal 2018, 2017, and 2016 there were no discontinued hedge positions. The impact to earnings is included in our materials, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately) line item. Changes in the fair value of the asset or liability are recorded as either a current or long-term asset or liability depending on the underlying fair value. Amounts reclassified to earnings for the commodity cash flow hedges are presented as an adjustment to reconcile net income to net cash provided by operating activities on the Consolidated Statements of Cash Flows. See Note 12, Derivative Financial Instruments Treasury Stock . The company records acquisitions of its common stock for treasury at cost. Differences between the proceeds for reissuances of treasury stock and average cost are credited or charged to capital in excess of par value to the extent of prior credits and thereafter to retained earnings. See Note 18, , for additional disclosure. Advertising and Marketing Costs . Advertising and marketing costs are expensed the first time the advertising takes place. Advertising and marketing costs were $40.5 million, $33.8 million, and $33.9 million for fiscal years 2018, 2017, and 2016, respectively. Advertising and marketing costs are recorded in the selling, distribution and administrative expense line item in our Consolidated Statements of Income. Stock-Based Compensation . Stock-based compensation expense for all share-based payment awards granted is determined based on the grant date fair value. The company recognizes compensation costs only for those shares expected to vest on a straight-line basis over the requisite service period of the award, which is generally the vesting term of the share-based payment award. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Note 3. Recent Accounting Pronouncements Pronouncements adopted during fiscal 2018 In May 2014, the FASB issued guidance for recognizing revenue in contracts with customers. This guidance requires entities to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. There are five steps outlined in the guidance to achieve this core principle. This guidance was adopted on December 31, 2017, the first day of our fiscal 2018. The company applied the guidance at adoption on the modified retrospective transition method. This guidance was applied to all contracts not completed at the adoption date. The adoption of this guidance did not impact our financial statements; however, updated disclosures are included in Note 1, Basis of Presentation In August 2016, the FASB issued guidance on the classification of certain cash receipts and payments in the statements of cash flows. This guidance was adopted on December 31, 2017, the first day of our fiscal 2018, and it did not impact the prior or current period presentation. In January 2017, the FASB issued guidance to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This guidance was adopted on December 31, 2017, the first day of our fiscal 2018. In March 2017, the FASB issued guidance that requires all employers to separately present the service cost component from the other pension and postretirement benefit cost components in the income statements. Service cost will now be presented with other employee compensation costs in operating income or capitalized in assets, as appropriate. The other components reported in the income statements will be reported separate from the service cost and outside of income from operations. This guidance was adopted on December 31, 2017, the first day of our fiscal 2018. Fiscal 2017 As reported Post-adoption* Materials, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately) $ 2,009,063 $ 2,009,473 Selling, distribution and administrative expenses $ 1,503,867 $ 1,510,015 Income from operations $ 162,912 $ 161,003 Other components of net periodic pension and postretirement benefits credit $ — $ (6,558 ) Fiscal 2016 As reported Post-adoption* Materials, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately) $ 2,026,367 $ 2,026,859 Selling, distribution and administrative expenses $ 1,464,236 $ 1,469,382 Income from operations $ 263,890 $ 264,898 Other components of net periodic pension and postretirement benefits credit $ — $ (5,638 ) In May 2017, the FASB issued guidance to provide clarity and reduce diversity in practice for changes to the terms and conditions of a share-based payment award. This guidance clarifies which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. This guidance was adopted on December 31, 2017, the first day of our fiscal 2018. In August 2017, the FASB amended the guidance for hedge accounting. This guidance makes more financial and nonfinancial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes the requirements for companies to separately measure ineffectiveness. It is intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging activities. We elected to early adopt t his guidance as of December 31, 2017, the first day of our fiscal 2018. In February 2018, the FASB issued guidance to allow a reclassification from AOCI to retained earnings for stranded tax effects resulting from the Act. We Impacted Line Item (Dr (Cr)) Retained Earnings AOCI Pension and postretirement plans $ (17,097 ) $ 17,097 Hedged financial instruments (1,709 ) 1,709 Total reclassifications of stranded income tax effects to retained earnings from AOCI $ (18,806 ) $ 18,806 Accounting pronouncements not yet adopted In February 2016, the FASB issued guidance that requires an entity to recognize lease liabilities and a right-of-use asset for virtually all leases (other than those that meet the definition of a short-term lease) on the balance sheet and to disclose key information about the entity’s leasing arrangements. This guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those periods, with earlier adoption permitted. This guidance must be adopted using a modified retrospective approach for all leases existing at, or entered after, the date of initial adoption, with an option to elect transition relief. The company has chosen to elect the modified retrospective approach provided by the guidance and will adopt the updated standard in fiscal 2019. We have chosen the option to not adjust prior comparative periods. The company will recognize a cumulative-effect adjustment to the opening balance of retained earnings at the adoption date under this option. As a result, the comparative periods presented in the financial statements in the period of adoption will be in accordance with current GAAP. The new guidance provides several optional practical expedients in transition. We have chosen to elect the ‘package of practical expedients’, which allows us not to reassess under the new guidance our prior conclusions about lease identification, lease classification and initial direct costs. We did not elect the use-of-hindsight practical expedient. We have chosen to elect the short-term lease recognition exemption for all leases that qualify, which means we will not recognize right-of-use assets or lease liabilities for leases with original terms less than one year. The company has a cross-functional project team focused on implementation of this new guidance. Our analysis includes a review of our current accounting policies and procedures and how these will be impacted upon adoption. We acquired a lease accounting software to facilitate implementation, and are currently installing, configuring and testing the software. The lease data abstraction is substantially complete. We are currently designing new processes and controls and evaluating our population of leased assets to assess the effect of the new guidance on our financial statements. We estimate the expected increase in the right-of-use (“ROU”) assets and liabilities on our Consolidated Balance Sheets upon adoption to be between $405.0 million and $430.0 million, respectively. We are finalizing our review of the lease portfolio and changes resulting from this review could impact the ROU assets and liabilities estimated within this range. The most significant impact will be the recognition of ROU assets and lease liabilities for operating leases, while our accounting for finance leases will remain substantially unchanged. We do not expect the impact of the standard to have a material effect on our Consolidated Statements of Income and Consolidated Statements of Cash Flows. The company currently has significant operating leases with our fiscal 2018 lease expense totaling $90.7 million. In June 2016, the FASB issued guidance that effects loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The company is determining what the impact, if any, will be on the trade and notes receivables recorded in our Consolidated Financial Statements. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 (the company’s fiscal 2020). Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 (the company’s fiscal 2019). The company is evaluating when this guidance will be adopted and the impact on our Consolidated Financial Statements. In January 2017, the FASB issued guidance to simplify the accounting for goodwill impairment. The guidance removed Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Companies will still have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. This guidance will be applied prospectively. Companies are required to disclose the nature of and reason for the change in accounting principle upon transition. That disclosure shall be provided in the first annual reporting period and in the interim period within the first annual reporting period when the company adopts this guidance. This change to the guidance is effective for fiscal years beginning after December 15, 2019 (the company’s fiscal 2020) and is applicable in the company’s fiscal 2020 Consolidated Financial Statements. Early adoption is permitted after January 1, 2017. The company is currently evaluating when this guidance will be adopted and the impact on our Consolidated Financial Statements. In August 2018, the FASB issued guidance to modify the disclosure requirements on fair value measurements. The guidance removes, modifies, and adds certain disclosures related to Level 1, Level 2, and Level 3 assets. The guidance is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 (the company’s fiscal 2020) and is applicable in the company’s fiscal 2020 Consolidated Financial Statements. The company is currently evaluating when this guidance will be adopted and the impact on our Consolidated Financial Statements. In August 2018, the FASB issued guidance to modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The guidance is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020 (the company’s fiscal 2021). Disclosures will be removed for the amounts in AOCI expected to be recognized as components of net periodic benefit cost over the next fiscal year, the amount and timing of assets expected to be returned to the employer, certain related party disclosures, and the effects of a one-percentage-point change in the assumed health care cost trend rates. Additional disclosures include the weighted average interest crediting rate for plan with promised crediting interest rates and an explanation of the reasons for significant gains and losses related to the benefit obligation for the period. This guidance shall be applied on a retrospective basis. The company is currently evaluating when this guidance will be adopted and the impact to the disclosures in our Consolidated Financial Statements. We have reviewed other recently issued accounting pronouncements and concluded that they are either not applicable to our business or that no material effect is expected upon future adoption. |
Financial Statement Revisions
Financial Statement Revisions | 12 Months Ended |
Dec. 29, 2018 | |
Prior Period Adjustment [Abstract] | |
Financial Statement Revisions | Note 4. During 2017, the company identified an error in reporting the cash flow impacts of certain repurchases and sales of territories. Cash receipts and payments for the repurchase and sale of territories and cash paid at the issuance of notes receivable were previously reported net when these transactions should have been disaggregated. The company has evaluated the impact of this error and determined it is not material to previously issued annual and interim financial statements. These corrections did not impact our previously reported Consolidated Balance Sheets, Consolidated Statements of Income, Consolidated Statements of Comprehensive Income, and Consolidated Statements of Changes in Stockholders’ Equity. The tables below present the revisions to the applicable Consolidated Statements of Cash Flows line item to correct the errors for all periods presented (amounts in thousands): Fiscal 2016 Impacted Consolidated Cash Flow Statement line item As Previously Reported Revisions New Guidance(1) As Revised Other reconciling items to net income $ (3,957 ) $ — $ 3,851 $ (106 ) Other assets $ (11,107 ) $ 7,666 $ — $ (3,441 ) Other accrued liabilities $ 12,389 $ (999 ) $ — $ 11,390 Net cash provided by operating activities $ 346,044 $ 6,667 $ 3,851 $ 356,562 Repurchase of independent distributor territories $ (10,350 ) $ 1,479 $ — $ (8,871 ) Cash paid at issuance of notes receivable $ — $ (8,577 ) $ — $ (8,577 ) Other investing activities $ 2,091 $ 431 $ — $ 2,522 Net cash disbursed for investing activities $ (70,047 ) $ (6,667 ) $ — $ (76,714 ) (1) The table above includes the impact of adopting new share-based payment guidance discussed in Note 3, Recent Accounting Pronouncements |
Loss on Inferior Ingredients
Loss on Inferior Ingredients | 12 Months Ended |
Dec. 29, 2018 | |
Loss On Inferior Ingredients [Abstract] | |
Loss on Inferior Ingredients | Note 5. Loss on inferior ingredients In June 2018, the company received from a supplier several shipments of inferior yeast, which reduced product quality and disrupted production and distribution of foodservice and retail bread and buns at several of the company’s bakeries during the second quarter. While the supplier confirmed that the inferior yeast used in the baking process was safe for consumption, customers and consumers reported instances of unsatisfactory product attributes, primarily involving smell and taste. Costs associated with inferior yeast were reclassified from material, supplies, labor and other production costs and selling, distribution and administrative expenses to the ‘Loss on inferior ingredients’ line item in our Consolidated Statements of Income. In addition, the company incurred costs associated with inferior whey during the third quarter of fiscal 2018. A voluntary recall was issued on July 18, 2018 due to the potential of tainted whey. Costs associated with inferior whey were reclassified from material, supplies, labor and other production costs to the ‘Loss on inferior ingredients’ line item in our Consolidated Statements of Income. These costs primarily impacted the Warehouse Segment. Although we anticipate incurring additional costs associated with inferior whey, we are not currently able to estimate the amount of such costs. The company recovered $4.2 million in cash from the supplier of inferior yeast that has offset the direct costs in the third quarter of fiscal 2018. During fiscal 2019, the company received an additional $1.3 million for the reimbursement of costs associated with receiving inferior yeast. We intend to seek additional recovery of all losses through appropriate means. The table below presents the total costs and recoveries during fiscal 2018 (amounts in thousands): DSD Segment Warehouse Segment Total Expense recognized during fiscal 2018 $ 5,811 $ 1,557 $ 7,368 Recoveries recognized during fiscal 2018 (4,156 ) — (4,156 ) Total loss on ingredients $ 1,655 $ 1,557 $ 3,212 The currently identifiable and measurable costs reclassified during fiscal 2018 in our Consolidated Statements of Income by segment related to these production and distribution disruptions were as follows (amounts in thousands): Fiscal 2018 Materials, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately): DSD Segment $ 951 Warehouse Segment $ 1,557 Total materials, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately) $ 2,508 Selling, distribution and administrative expenses: DSD Segment $ 704 Warehouse Segment $ — Total selling, distribution and administrative expenses $ 704 |
Restructuring Activities
Restructuring Activities | 12 Months Ended |
Dec. 29, 2018 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Activities | Note 6. Restructuring Activities On August 10, 2016, we announced the launch of Project Centennial, a comprehensive business and operational review. We identified opportunities to enhance revenue growth, streamline operations, improve efficiencies, and make investments that strengthen our competitive position and improve margins over the long term. We began Project Centennial with an evaluation of our brands, product mix, and organizational structure. We then developed strategic priorities to help us capitalize on retail and consumer changes. The primary objective is to improve margins and profitably grow the revenue over time. These priorities are as follows: Reduce costs to fuel growth . The company is focusing on reducing costs in our purchased goods and services initiative and our supply chain optimization plan. Purchased goods and services operations will be centralized to create standardization and continuously improve and to develop consistent policies and specifications. Supply chain optimization intends to reduce operational complexity and capitalize on scale. This initiative includes, and will continue to include, consulting and other third-party costs as we finalize the organizational structure. We incurred $9.7 million during fiscal 2018, $37.3 million during fiscal 2017, and $6.3 million during fiscal 2016 of these non-restructuring consulting costs. Develop leading capabilities . As of December 29, 2018, we report our financial results in either the DSD Segment or the Warehouse Segment. On May 3, 2017, the company announced an enhanced organizational structure designed to provide greater focus on the company’s strategic objectives, emphasize brand growth and innovation in line with a national branded food company, drive enhanced accountability, reduce costs, and strengthen our long-term strategy. The new organizational structure established two BUs, Fresh Bakery and Snacking/Specialty, and realign key leadership roles. The new structure also provided for centralized marketing, sales, supply chain, shared-services/administrative, and corporate strategy functions, each with more clearly defined roles and responsibilities. On July 2, 2018, the company announced the creation of the Chief Operating Officer (COO) position, which continued refinements to the organizational structure. This role will be responsible for executing the company’s strategies under Project Centennial, as well as overseeing the BUs, supply chain, sales, corporate strategy and ventures, and communications. The company intends to transition to the new structure over the next several months with full implementation expected to be completed in the beginning of fiscal 2019. We began relocating certain employees during the third quarter of fiscal 2017 as we transition to the enhanced organizational structure. Reorganization costs of $4.2 million and $1.9 million for fiscal 2018 and fiscal 2017, respectively, for relocating employees were incurred and are recorded in the restructuring and related impairment charges line item on the Consolidated Statements of Income. The current DSD and warehouse segmentation will remain until the new structure is fully implemented. On July 17, 2017, the company commenced the VSIP. The VSIP was implemented as part of our effort to restructure, streamline operations, and better position the company for profitable growth. The VSIP election period closed on September 25, 2017 and resulted in approximately 325 employees accepting the offer. The separations began on September 7, 2017, and were substantially complete by the end of fiscal 2017. We recorded an aggregate charge of $29.7 million in fiscal 2017 for the VSIP and a credit of $0.6 million during fiscal 2018. We paid $4.6 million during fiscal 2017 and $24.2 million during fiscal 2018 related to the VSIP. These charges consist primarily of employee severance and benefits-related costs and are recorded in the restructuring and related impairment charges line item on our Consolidated Statements of Income. Reinvigorate core business . This objective is to invest in our brands to align brands to consumers to maximize our return on investment. We expect to incur significant incremental marketing costs annually for brand development. These costs will not be restructuring and will be recognized as incurred. Project Centennial also included a brand rationalization study to identify high-potential and established brands to focus on innovation and cash flow, respectively. The study, which concluded in our third quarter of fiscal 2017, changed the outlook for several brands and resulted in the recognition of an impairment on certain of these finite-lived and indefinite-lived intangible trademark assets in our third quarter of fiscal 2017. A second product rationalization study to identify specific products that would be discontinued within certain brands was completed in the fourth quarter of fiscal 2018. The total intangible asset impairment charges, which are recorded in the restructuring and related impairment charges line item in our Consolidated Statements of Income, were $66.2 million. During fiscal 2018 we recorded a packaging impairment charge of $1.5 million as a result of the product rationalization study. See Note 10, , for more information on these charges. Project Centennial is expected to be completed by our fiscal 2021. The following restructuring impairments (inclusive of property, plant and equipment, packaging, and spare parts) were recognized, by segment, during fiscal 2018 (amounts in thousands): DSD Segment Warehouse Segment Total Plant closure costs $ 3,133 $ 204 $ 3,337 Line closure costs — 718 718 Product rationalization costs 1,155 383 1,538 Total impairment of assets $ 4,288 $ 1,305 $ 5,593 On November 6, 2018, the company announced the closure of a bakery in Brattleboro, Vermont. The bakery was closed during the fourth quarter of fiscal 2018 and consisted of a $2.5 million charge for property, plant, and equipment and a charge of $0.2 million for spare parts. An additional $0.5 million was related to a decision to sell a plant that is classified as held for sale. During the fourth quarter of fiscal 2018, the company recognized $0.7 million for closing various equipment lines at certain plants as a result of the supply chain analysis. On August 9, 2017, the company announced the closure of a Warehouse Segment snack cake plant in Winston-Salem, North Carolina. The bakery closed in November 2017. The closure costs were $4.4 million and consisted of $3.4 million for property, plant and equipment impairments and $1.0 million for employee termination benefits during fiscal 2017. An additional $0.2 million was recognized during fiscal 2018 for equipment impairments. These amounts are recorded in the restructuring and related impairment charges line item on our Consolidated Statements of Income. The company recognized $2.0 million in severance costs related to other reorganization initiatives during fiscal 2017. These costs are not related to the VSIP and were made pursuant to the company’s normal severance policies. Capitalize on product adjacencies . This initiative will focus on growing share in underdeveloped markets. Adjacencies are geographic and product categories that will allow us to leverage our competitive advantages. This can be done either organically with our high-potential brands or through strategic acquisitions. As of December 29, 2018, we cannot estimate how much this initiative will cost for restructuring. See Note 25, Segment Reporting Fiscal 2018 Fiscal 2017 Restructuring and related impairment charges: Reorganization costs $ 4,209 $ 1,925 VSIP (606 ) 29,665 Impairment of assets 5,593 69,601 Employee termination benefits 571 2,939 Restructuring and related impairment charges (1) 9,767 104,130 Project Centennial implementation costs (2) 9,723 37,306 Total Project Centennial restructuring and implementation costs $ 19,490 $ 141,436 (1) Presented on our Consolidated Statements of Income. (2) Costs are recorded in the selling, distribution, and administrative expenses line item of our Consolidated Statements of Income. The table below presents the components of, and changes in, our restructuring accruals (amounts in thousands): VSIP Employee termination benefits (1) Reorganization costs (2) Total Liability balance at December 31, 2016 $ — $ — $ — $ — Charges 29,665 2,939 1,925 34,529 Cash payments (4,643 ) (2,471 ) (1,925 ) (9,039 ) Liability balance (3) at December 30, 2017 $ 25,022 $ 468 $ — $ 25,490 Charges (606 ) 571 4,209 4,174 Cash payments (24,242 ) (812 ) (4,209 ) (29,263 ) Liability balance (3) at December 29, 2018 $ 174 $ 227 $ — $ 401 (1) Employee termination benefits not related to the VSIP. (2) Reorganization costs include employee relocation expenses. (3) Recorded in the other accrued current liabilities line item of our Consolidated Balance Sheets. |
Divestiture
Divestiture | 12 Months Ended |
Dec. 29, 2018 | |
Business Combinations [Abstract] | |
Divestiture | Note 7. Divestiture On January 14, 2017, the company completed the sale of a non-core mix manufacturing business located in Cedar Rapids, Iowa for $44.0 million, an amount reduced by a working capital adjustment of $2.8 million, resulting in net proceeds of $41.2 million. This resulted in a gain on sale of $28.9 million, which was recognized in the first quarter of fiscal 2017. The gain on the sale is presented on the Consolidated Statements of Income on the ‘Gain on divestiture’ line item. The mix manufacturing business was a small component of our Warehouse Segment and the disposal of this business does not represent a strategic shift in the segment’s operations or financial results. The table below presents a computation of the gain on divestiture (amounts in thousands): Cash consideration received $ 41,230 Recognized amounts of identifiable assets acquired and liabilities assumed by buyer: Property, plant, and equipment recorded as assets held for sale 3,824 Goodwill 801 Financial assets 7,730 Net derecognized amounts of identifiable assets sold 12,355 Gain on divestiture $ 28,875 |
Notes Receivable
Notes Receivable | 12 Months Ended |
Dec. 29, 2018 | |
Receivables [Abstract] | |
Notes Receivable from IDPs | Note 8. Notes Receivable from IDPs The company provides direct financing to certain IDPs for the purchase of the IDPs’ distribution rights and records the notes receivable on the Consolidated Balance Sheets. The distribution rights are financed for up to ten years. During fiscal years 2018, 2017, and 2016 the following amounts were recorded as interest income, the majority of which relates to these notes receivable (amounts in thousands): Interest income Fiscal 2018 $ 27,755 Fiscal 2017 $ 22,938 Fiscal 2016 $ 20,552 The notes receivable are collateralized by the IDPs’ distribution rights. Additional details are included in Note 17, Fair Value of Financial Instruments |
Assets Held for Sale
Assets Held for Sale | 12 Months Ended |
Dec. 29, 2018 | |
Property Plant And Equipment Assets Held For Sale Disclosure [Abstract] | |
Assets Held for Sale | Note 9. Assets Held for Sale The company repurchases distribution rights from IDPs in circumstances when the company decides to exit a territory or, in some cases, when the IDP elects to terminate its relationship with the company. In most distributor agreements, if the company decides to exit a territory or stop using the independent distribution model in a territory, the company is contractually required to purchase the distribution rights from the IDP. In the event an IDP terminates its relationship with the company, the company, although not legally obligated, may repurchase and operate those distribution rights as a company-owned territory. The IDPs may also sell their distribution rights to another person or entity. Distribution rights purchased from IDPs and operated as company-owned territories are recorded on the Consolidated Balance Sheets in the line item “Assets Held for Sale” while the company actively seeks another IDP to purchase the distribution rights for the territory. Distribution rights held for sale and operated by the company are sold to IDPs at fair market value pursuant to the terms of a distributor agreement. There are multiple versions of the distributor agreement in place at any given time and the terms of such distributor agreements vary. The company sold certain plants and depots that it acquired in July 2013 from Hostess Brands, Inc., which initially included 20 closed plants and 36 depots (the “Acquired Hostess Bread Assets”). The Acquired Hostess Bread Assets were originally recorded as held and used in the purchase price allocation. Subsequent to the acquisition of the Acquired Hostess Bread Assets, we determined that some of the acquired plants and depots did not meet our long-term operating strategy and were sold. There are certain other properties not associated with the Acquired Hostess Bread Assets that are also in the process of being sold. These assets are recorded on the Consolidated Balance Sheets in the line item “Assets Held for Sale” and are included in the “Other” line item in the summary table below. During fiscal 2018, the company decided to sell its Tulsa, Oklahoma plant, which was a part of the Acquired Hostess Bread Assets and never placed in service. As a result, we recorded an impairment of $0.5 million. During fiscal 2016, the company decided to sell additional Acquired Hostess Bread Assets not specifically reserved for future use. As a result, we recorded an impairment of $5.3 million for these plants, depots, and equipment and completed the sale in the fourth quarter of fiscal 2016. The table below presents the proceeds from the sale of the Acquired Hostess Bread Assets for fiscal years 2018, 2017, and 2016 (amounts in thousands): Proceeds sale of Acquired Hostess Bread Assets Fiscal 2018 $ 667 Fiscal 2017 $ 6,848 Fiscal 2016 $ 9,079 In addition to the impairments for the Acquired Hostess Bread Assets above, during the fourth quarter of our fiscal 2016, we recognized an impairment loss of $4.6 million for the difference between the carrying value and fair value of other assets classified as held for sale. Additional assets recorded in assets held for sale are for property, plant and equipment exclusive of the amounts disclosed as part of the Acquired Hostess Bread Assets and the disposal group discussed above. Also included in assets held for sale are property, plant and equipment of the Winston-Salem, North Carolina plant. The carrying values of assets held for sale are not amortized and are evaluated for impairment as required. The table below presents the assets held for sale as of December 29, 2018 and December 30, 2017, respectively (amounts in thousands): December 29, 2018 December 30, 2017 Distribution rights $ 3,188 $ 13,584 Acquired Hostess Bread Assets plants and depots 2,360 479 Other 1,058 1,260 Total assets held for sale $ 6,606 $ 15,323 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 29, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 10. Goodwill and Other Intangible Assets The table below summarizes our goodwill and other intangible assets at December 29, 2018 and December 30, 2017, respectively, each of which is explained in additional detail below (amounts in thousands): December 29, 2018 December 30, 2017 Goodwill $ 545,379 $ 464,777 Amortizable intangible assets, net of amortization 588,329 535,842 Indefinite-lived intangible assets 206,600 206,600 Total goodwill and other intangible assets $ 1,340,308 $ 1,207,219 The changes in the carrying amount of goodwill, by segment, during fiscal 2017 and fiscal 2018, are as follows (amounts in thousands): DSD Segment Warehouse Segment Total Balance as of December 31, 2016 $ 424,563 $ 41,015 $ 465,578 Change in goodwill related to divestiture — (801 ) (801 ) Balance as of December 30, 2017 $ 424,563 $ 40,214 $ 464,777 Change in goodwill related to acquisition 57,056 23,546 80,602 Balance as of December 29, 2018 $ 481,619 $ 63,760 $ 545,379 Changes in goodwill during fiscal 2018 relate to the Canyon Bakehouse, LLC (“Canyon”) acquisition in both segments as discussed in Note 11, Acquisition Divestiture As of December 29, 2018 and December 30, 2017, the company had the following amounts related to amortizable intangible assets (amounts in thousands): December 29, 2018 December 30, 2017 Asset Cost Accumulated Amortization Net Value Cost Accumulated Amortization Net Value Trademarks $ 413,092 $ 44,711 $ 368,381 $ 371,392 $ 34,716 $ 336,676 Customer relationships 318,021 99,904 218,117 281,621 84,280 197,341 Non-compete agreements 5,154 4,874 280 4,874 4,874 — Distributor relationships 4,123 2,572 1,551 4,123 2,298 1,825 Total $ 740,390 $ 152,061 $ 588,329 $ 662,010 $ 126,168 $ 535,842 As of December 29, 2018 and December 30, 2017, there was $206.6 million of indefinite-lived intangible trademark assets separately identified from goodwill. These trademarks are classified as indefinite-lived because there is no foreseeable limit to the period over which the asset is expected to contribute to our cash flows. They are well established brands with a long history and well defined markets. In addition, we are continuing to use these brands both in their original markets and throughout our expansion territories. We believe these factors support an indefinite-life assignment with an annual impairment analysis to determine if the trademarks are realizing their expected economic benefits. Fiscal 2017 restructuring and related impairment charges During fiscal 2017, the company recognized intangible asset impairments of $66.2 million that are recorded in the restructuring and related impairment charges line item of our Consolidated Statements of Income. The company is currently undergoing an enterprise-wide business and operational review as discussed in Note 6, Restructuring Activities DSD Segment Warehouse Segment Total Indefinite-lived intangible assets $ 18,500 $ — $ 18,500 Finite-lived intangible assets 36,612 11,135 47,747 Restructuring impairment charges $ 55,112 $ 11,135 $ 66,247 Fiscal 2016 impairment charges The company’s core markets were flat in fiscal 2016. As a result, we noticed that several of our brands were performing below expectations in the back half of the year. This was caused primarily from our regional brands that were negatively impacted by our national brands and the flat market in general. The diagnostic phase of the study was completed in our fourth quarter of fiscal 2016 and, at the time, impacted certain trademarks’ future revenue projections. We included the potential impact of this study (for brands known to be impacted at the time of the test) in our expected results while performing our annual impairment test for all of our indefinite-lived intangible trademark assets. This led to a $15.0 million impairment charge of three indefinite-lived trademarks. Following this impairment, the company evaluated the indefinite-lived classification and determined that the three trademarks which were impaired should be reassigned as finite-lived assets with an estimated useful life of forty years each. We do not intend to discontinue using these trademarks; however, our expectation of limiting them to each of their respective core markets impacts their growth potential. The carrying value of these three trademarks, before impairment, was $171.0 million. The fair value of these three trademarks was $156.0 million during our test. The difference between the carrying value and the fair value resulted in a $15.0 million impairment. The remaining indefinite-lived intangible trademark assets all had fair values in excess of their respective carrying values so no impairment was recognized. Amortization expense Amortization expense for fiscal years 2018, 2017, and 2016 was as follows (amounts in thousands): Amortization expense Fiscal 2018 $ 25,892 Fiscal 2017 $ 27,274 Fiscal 2016 $ 24,502 Estimated amortization of intangibles for fiscal 2019 and the next four years thereafter is as follows (amounts in thousands): Fiscal year Amortization of Intangibles 2019 $ 29,210 2020 $ 28,606 2021 $ 27,893 2022 $ 27,189 2023 $ 26,309 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 29, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Note 11. Acquisition On December 14, 2018, the company completed the acquisition of 100% of the outstanding membership interests of Canyon, a leading gluten-free bread baker, from its members for total consideration of $205.2 million, including a $5.0 million earn-out recorded as contingent consideration. We believe the acquisition of Canyon strengthens our position as the second-largest baker in the U.S. by giving us access to the fast-growing gluten-free bread category. The acquisition has been accounted for as a business combination and the assets have been assigned to our DSD Segment and Warehouse Segment. Canyon’s sales and results of operations were immaterial for fiscal 2018. The total goodwill recorded for this acquisition was $80.6 million and it is deductible for tax purposes. During fiscal 2018, the company incurred $4.5 million of acquisition-related costs for Canyon. This table is based on preliminary valuations for the assets acquired, liabilities assumed, and the allocated intangible assets and goodwill. The acquisition-related costs were recorded in the selling, distribution and administrative expense line item in our Consolidated Statements of Income. The following table summarizes the consideration paid for Canyon based on the fair value at the acquisition date (amounts in thousands): Fair Value of consideration transferred: Cash consideration paid $ 200,208 Working capital adjustments 299 Contingent consideration 4,700 Total consideration $ 205,207 Recognized amounts of identifiable assets acquired and liabilities assumed: Property, plant, and equipment $ 42,128 Identifiable intangible assets 78,380 Financial assets 4,097 Net recognized amounts of identifiable assets acquired 124,605 Goodwill $ 80,602 Property, plant and equipment in the table above includes real property and machinery and equipment The following table presents the acquired intangible assets subject to amortization (amounts in thousands, except amortization periods): Total Weighted amortization years Attribution Method Trademarks $ 41,700 40.0 Straight-line Customer relationships 36,400 25.0 Sum of year digits Noncompete agreements 280 1.7 Straight-line $ 78,380 32.9 The customer relationships are reported in the Warehouse Segment while the trademarks and noncompete assets are reported in the DSD Segment. Goodwill was allocated to the two segments using the acquisition method approach. Goodwill of $57.1 million and $23.5 million was allocated to the DSD Segment and Warehouse Segment, respectively. The fair value of trade receivables was $3.6 million. The gross amount of the receivables were $3.7 million with $0.1 million determined to be uncollectible. We did not acquire any other class of receivables as a result of the Canyon acquisition. Acquisition pro formas We determined that the consolidated results of operations for Canyon were immaterial in the aggregate and the pro forma financial statements are not required for fiscal 2018. The purchase price allocation attributable to Canyon is preliminary. When all relevant information is obtained, resulting changes, if any, to our provisional purchase price allocation will be adjusted to reflect new information obtained about the facts and circumstances that existed as of the respective acquisition dates that, if known, would have affected the measurement of the amounts recognized as of those dates. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 29, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 12. Derivative Financial Instruments The company measures the fair value of its derivative portfolio by using the price that would be received to sell an asset or paid to transfer a liability in the principal market for that asset or liability. These measurements are classified into a hierarchy by the inputs used to perform the fair value calculation as follows: Level 1: Fair value based on unadjusted quoted prices for identical assets or liabilities at the measurement date Level 2: Modeled fair value with model inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly Level 3: Modeled fair value with unobservable model inputs that are used to estimate the fair value of the asset or liability Commodity Price Risk The company enters into commodity derivatives, designated as cash-flow hedges of existing or future exposure to changes in commodity prices. The company’s primary raw materials are flour, sweeteners, yeast, and shortening, along with pulp, paper, and petroleum-based packaging products. Natural gas, which is used as oven fuel, is also an important commodity used for production. As of December 29, 2018, the company’s commodity hedge portfolio contained derivatives which are recorded in the following accounts with fair values measured as indicated (amounts in thousands): Level 1 Level 2 Level 3 Total Assets: Other current assets $ 501 $ — $ — $ 501 Other long-term assets — — — — Total $ 501 $ — $ — $ 501 Liabilities: Other current liabilities $ (7,732 ) $ — $ — $ (7,732 ) Other long-term liabilities (1,203 ) — — (1,203 ) Total $ (8,935 ) $ — $ — $ (8,935 ) Net Fair Value $ (8,434 ) $ — $ — $ (8,434 ) As of December 30, 2017, the company’s commodity hedge portfolio contained derivatives which are recorded in the following accounts with fair values measured as indicated (amounts in thousands): Level 1 Level 2 Level 3 Total Assets: Other current assets $ 259 $ — $ — $ 259 Other long-term assets 32 — — 32 Total $ 291 $ — $ — $ 291 Liabilities: Other current liabilities $ (10,247 ) $ — $ — $ (10,247 ) Other long-term liabilities (639 ) — — (639 ) Total (10,886 ) — — (10,886 ) Net Fair Value $ (10,595 ) $ — $ — $ (10,595 ) The positions held in the portfolio are used to hedge economic exposure to changes in various raw materials and production input prices and effectively fixes the price, or limits increases in prices, for a period of time extending into fiscal 2018. These instruments are designated as cash-flow hedges. See Note 2, Summary of Significant Accounting Policies Interest Rate Risk The company entered into treasury rate locks on August 5, 2016 and August 8, 2016 to fix the interest rate for the 2026 notes issued on September 28, 2016. The derivative positions were closed when the debt was priced on September 23, 2016 with a cash settlement net receipt of $1.0 million that offset changes in the benchmark treasury rate between execution of the treasury rate locks and the debt pricing date. These rate locks were designated as a cash flow hedge. During fiscal 2016, the company recognized $0.1 million of ineffectiveness due to issuing the debt earlier than the settlement date of the treasury locks. The ineffectiveness amount is reported as a selling, distribution, and administrative expense in our Consolidated Statements of Income. The company entered into a treasury rate lock on March 28, 2012 to fix the interest rate for the 2022 notes issued on April 3, 2012. The derivative position was closed when the debt was priced on March 29, 2012 with a cash settlement that offset changes in the benchmark treasury rate between the execution of the treasury rate lock and the debt pricing date. This treasury rate lock was designated as a cash flow hedge. The following table outlines the company’s derivatives which were hedging the risk of changes in forecasted interest payments on forecasted issuance of long-term debt (amounts in thousands, before tax, and an asset is a positive value and a liability is a negative value): Terminated Description Aggregate Notional Amount Fair Value When Terminated Fair Value Deferred in AOCI (1) Ineffective Portion at Termination April/2012 Treasury lock $ 500,000 $ (3,137 ) $ 2,510 $ 627 September/2016 Treasury lock $ 200,000 $ 1,298 $ (1,298 ) $ — September/2016 Treasury lock $ 150,000 $ (323 ) $ 215 $ 108 (1) The amount reported in AOCI will be reclassified to interest expense as interest payments are made on the related notes. Derivative Assets and Liabilities The company had the following derivative instruments recorded on the Consolidated Balance Sheets, all of which are utilized for the risk management purposes detailed above (amounts in thousands): Derivative Assets December 29, 2018 December 30, 2017 Derivatives Designated as Hedging Instruments Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity contracts Other current assets $ 501 Other current assets $ 259 Commodity contracts Other long-term assets — Other long-term assets 32 Total $ 501 $ 291 Derivative Liabilities December 29, 2018 December 30, 2017 Derivatives Designated as Hedging Instruments Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity contracts Other current liabilities $ 7,732 Other current liabilities $ 10,247 Commodity contracts Other long-term liabilities 1,203 Other long-term liabilities 639 Total $ 8,935 $ 10,886 Derivative AOCI transactions The company had the following derivative instruments for deferred gains and (losses) on closed contracts and the effective portion for changes in fair value recorded in AOCI (no amounts were excluded from the effectiveness test), all of which are utilized for the risk management purposes detailed above (amounts in thousands and net of tax): Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) (Net of tax) Derivatives in Cash Flow Hedging Relationships Fiscal 2018 Fiscal 2017 Fiscal 2016 Interest rate contracts $ — $ — $ 666 Commodity contracts 2,978 (6,789 ) 5,064 Total $ 2,978 $ (6,789 ) $ 5,730 Amount of (Gain) or Loss Reclassified from Accumulated OCI into Income (Effective Portion)(Net of tax) Location of (Gain) or Loss Reclassified from AOCI into Income Derivatives in Cash Flow Hedging Relationships Fiscal 2018 Fiscal 2017 Fiscal 2016 (Effective Portion) Interest rate contracts $ 107 $ 88 $ 135 Interest expense (income) Commodity contracts 972 1,279 3,264 Production costs (1) Total $ 1,079 $ 1,367 $ 3,399 1. Included in Materials, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately). The balance in accumulated other comprehensive loss (income) related to commodity price risk and interest rate risk derivative transactions that are closed or will expire over the next three years are as follows (amounts in thousands and net of tax) at December 29, 2018: Commodity Price Risk Derivatives Interest Rate Risk Derivatives Totals Closed contracts $ (2,153 ) $ (15 ) $ (2,168 ) Expiring in 2019 5,405 — 5,405 Expiring in 2020 782 — 782 Expiring in 2021 112 — 112 Expiring in 2022 6 — 6 Total $ 4,152 $ (15 ) $ 4,137 See Note 2, Summary of Significant Accounting Policies Derivative transactions notional amounts As of December 29, 2018, the company had entered into the following financial contracts to hedge commodity risks (amounts in thousands): Derivatives in Cash Flow Hedging Relationships Notional amount Wheat contracts $ 122,946 Soybean oil contracts 20,372 Corn contracts 10,570 Natural gas contracts 16,996 Total $ 170,884 The company’s derivative instruments contained no credit-risk-related contingent features at December 29, 2018. As of December 29, 2018, the company had $15.4 million recorded in other current assets, and on December 30, 2017, the company had $16.3 million recorded in other current assets representing collateral from or with counterparties for hedged positions. |
Other Current and Non-Current A
Other Current and Non-Current Assets | 12 Months Ended |
Dec. 29, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Current and Non-Current Assets | Note 13. Other Current and Non-Current Assets Other current assets consist of (amounts in thousands): December 29, 2018 December 30, 2017 Prepaid assets $ 22,286 $ 22,154 Fair value of derivative instruments 501 259 Collateral to counterparties for derivative positions 15,408 16,324 Income taxes receivable 3,917 10,133 Other 1,125 767 Total $ 43,237 $ 49,637 Other non-current assets consist of (amounts in thousands): December 29, 2018 December 30, 2017 Unamortized financing fees $ 1,391 $ 1,787 Investments 3,125 3,434 Notes receivable — 2,464 Deposits 2,257 2,342 Other 154 201 Total $ 6,927 $ 10,228 The company impaired the notes receivable (not related to IDPs) because the counterparty defaulted on the note during the first quarter of fiscal 2018. |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Dec. 29, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Accrued Liabilities | Note 14. Other Accrued Liabilities Other accrued liabilities consist of (amounts in thousands): December 29, 2018 December 30, 2017 Employee compensation $ 19,469 $ 15,276 VSIP liabilities 174 25,022 Employee vacation 23,345 22,638 Employee bonus 7,931 29,369 Fair value of derivative instruments 7,732 10,247 Insurance 29,353 30,052 Bank overdraft 10,550 5,699 Accrued interest 8,152 7,711 Accrued taxes 5,661 10,943 Accrued legal costs 3,874 7,877 Accrued advertising 3,145 1,477 Accrued legal settlements 9,053 6,928 Multi-employer pension plan withdrawal costs — 15,223 Accrued short term deferred income 5,525 4,940 Contingent acquisition consideration 4,700 — Other 8,695 7,066 Total $ 147,359 $ 200,468 |
Debt, Lease and Other Commitmen
Debt, Lease and Other Commitments | 12 Months Ended |
Dec. 29, 2018 | |
Debt Disclosure [Abstract] | |
Debt, Lease and Other Commitments | Note 15. Debt, Lease and Other Commitments Long-term debt, including capital lease obligations, consisted of the following at December 29, 2018 and December 30, 2017: Interest Rate at December 29, 2018 Final Maturity December 29, 2018 December 30, 2017 (Amounts in thousands) Unsecured credit facility 5.60% 2022 $ — $ — 2026 notes 3.50% 2026 395,550 394,978 2022 notes 4.38% 2022 398,423 397,941 Accounts receivable securitization facility 3.43% 2020 177,000 — Capital lease obligations 3.92% 2026 21,942 27,150 Other notes payable 2.10% 2020 8,621 12,167 1,001,536 832,236 Current maturities of long-term debt and capital lease obligations 10,896 12,095 Long-term debt and capital lease obligations $ 990,640 $ 820,141 Bank overdrafts occur when checks have been issued but have not been presented to the bank for payment. Certain of our banks allow us to delay funding of issued checks until the checks are presented for payment. The delay in funding results in a temporary source of financing from the bank. The activity related to bank overdrafts is shown as a financing activity in our Consolidated Statements of Cash Flows. Bank overdrafts are included in other current liabilities on our Consolidated Balance Sheets. As of December 29, 2018 and December 30, 2017, the bank overdraft balance was $10.6 million and $5.7 million, respectively. The company also had standby letters of credit (“LOCs”) outstanding of $8.4 million and $8.7 million at December 29, 2018 and December 30, 2017, respectively, which reduce the availability of funds under the credit facility. The outstanding LOCs are for the benefit of certain insurance companies and lessors. None of the LOCs are recorded as a liability on the Consolidated Balance Sheets. 2026 Notes, Accounts Receivable Securitization Facility, 2022 Notes, and Credit Facility 2026 Notes . On September 28, 2016, the company issued $400.0 million of senior notes (the “2026 notes”). The company will pay semiannual interest on the 2026 notes on each April 1 and October 1, beginning on April 1, 2017, and the 2026 notes will mature on October 1, 2026. The notes bear interest at 3.500% per annum. The 2026 notes are subject to interest rate adjustments if either Moody’s or S&P downgrades (or downgrades and subsequently upgrades) the credit rating assigned to the 2026 notes. On any date prior to July 1, 2026, the company may redeem some or all of the notes at a price equal to the greater of (1) 100% of the principal amount of the notes redeemed and (2) a “make-whole” amount plus, in each case, accrued and unpaid interest. The make-whole amount is equal to the sum of the present values of the remaining scheduled payments of principal and interest on the 2026 notes to be redeemed that would be due if such notes matured July 1, 2026 (exclusive of interest accrued to, but not including, the date of redemption), discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate (as defined in the indenture governing the notes), plus 30 basis points, plus in each case accrued and unpaid interest. At any time on or after July 1, 2026, the company may redeem some or all of the 2026 notes at a price equal to 100% of the principal amount of the notes redeemed plus accrued and unpaid interest. If the company experiences a “change of control triggering event” (which involves a change of control of the company and related rating of the notes below investment grade), it is required to offer to purchase the notes at a purchase price equal to 101% of the principal amount, plus accrued and unpaid interest thereon unless the company exercised its option to redeem the notes in whole. The 2026 notes are also subject to customary restrictive covenants, including certain limitations on liens and sale and leaseback transactions. The face value of the 2026 notes is $400.0 million. There was a debt discount representing the difference between the net proceeds, after expenses, received upon issuance of debt and the amount repayable at its maturity. The company also paid issuance costs (including underwriting fees and legal fees) on the 2026 notes. Debt issuance costs and the debt discount are being amortized to interest expense over the term of the 2026 notes. As of December 29, 2018, the company was in compliance with all restrictive covenants under the indenture governing the 2026 notes. The table below presents the debt discount, underwriting fees and the legal and other fees for issuing the 2026 notes (amounts in thousands): Total fees for 2026 notes Amount at Issuance Debt discount $ 2,108 Underwriting, legal, and other fees 3,634 Total fees $ 5,742 Accounts Receivable Securitization Facility . On July 17, 2013, the company entered into an accounts receivable securitization facility (the “facility”). The company has amended the facility six times since execution, most recently on September 27, 2018. These amendments include provisions which (i) increased the revolving commitments under the facility to $200.0 million from $150.0 million, (ii) added a leverage pricing grid, (iii) added an additional bank to the lending group, (iv) made certain other conforming changes, and (v) extended the term, most recently one additional year to September 27, 2020. The amendment that added the additional bank was accounted for as an extinguishment of the debt. The remaining amendments were accounted for as modifications. Under the facility, a wholly-owned, bankruptcy-remote subsidiary purchases, on an ongoing basis, substantially all trade receivables. As borrowings are made under the facility, the subsidiary pledges the receivables as collateral. In the event of liquidation of the subsidiary, its creditors would be entitled to satisfy their claims from the subsidiary’s pledged receivables prior to distributions of collections to the company. We include the subsidiary in our Consolidated Financial Statements. The facility contains certain customary representations and warranties, affirmative and negative covenants, and events of default. There were no amounts outstanding under the facility on December 30, 2017. As of December 29, 2018 and December 30, 2017, respectively, the company was in compliance with all restrictive covenants under the facility. The company currently has $1.3 million available under its facility for working capital and general corporate purposes. Amounts available for withdrawal under the facility are determined as the lesser of the total commitments and a formula derived amount based on qualifying trade receivables. Optional principal repayments may be made at any time without premium or penalty. Interest is due two days after our reporting periods end in arrears on the outstanding borrowings and is computed as the cost of funds rate plus an applicable margin of 85 basis points. An unused fee of 30 basis points is applicable on the unused commitment at each reporting period. Financing costs paid at inception of the facility and at the time amendments are executed are being amortized over the life of the facility. The balance of unamortized financing costs was $0.2 million on December 29, 2018 and December 30, 2017 and are recorded in other assets on the Consolidated Balance Sheets. 2022 Notes. On April 3, 2012, the company issued $400.0 million of senior notes (the “2022 notes”). The company pays semiannual interest on the notes on each April 1 and October 1, beginning on October 1, 2012, and the notes will mature on April 1, 2022. The notes bear interest at 4.375% per annum. On any date prior to January 1, 2022, the company may redeem some or all of the notes at a price equal to the greater of (1) 100% of the principal amount of the notes redeemed and (2) a “make-whole” amount plus, in each case, accrued and unpaid interest. The make-whole amount is equal to the sum of the present values of the remaining scheduled payments of principal thereof (not including any interest accrued thereon to, but not including, the date of redemption), discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate (as defined in the indenture governing the notes), plus 35 basis points, plus in each case, unpaid interest accrued thereon to, but not including, the date of redemption. At any time on or after January 1, 2022, the company may redeem some or all of the notes at a price equal to 100% of the principal amount of the notes redeemed plus accrued and unpaid interest. If the company experiences a “change of control triggering event” (which involves a change of control of the company and related rating of the notes below investment grade), it is required to offer to purchase the notes at a purchase price equal to 101% of the principal amount, plus accrued and unpaid interest thereon unless the company exercised its option to redeem the notes in whole. The notes are also subject to customary restrictive covenants, including certain limitations on liens and sale and leaseback transactions. The face value of the notes is $400.0 million and the current discount on the notes is $0.3 million. The company paid issuance costs (including underwriting fees and legal fees) for issuing the notes of $3.9 million. The issuance costs and the debt discount are being amortized to interest expense over the term of the notes. As of December 29, 2018 and December 30, 2017, the company was in compliance with all restrictive covenants under the indenture governing the notes. Credit Facility. On November 29, 2017 the company entered into the sixth amendment to its amended and restated credit agreement, dated as of October 24, 2003, with the lenders party thereto and Deutsche Bank AG New York Branch, as administrative agent, the swingline lender and issuing lender. The amendment, among other things (i) extends the maturity date of the existing credit agreement to November 29, 2022; (ii) amends the applicable margin for revolving loans maintained as (1) base rate loans and swingline loans to a range of 0.00% to 0.575% (from a range of 0.00% to 0.75% in the existing credit agreement) and (2) Eurodollar loans to a range of 0.575% to 1.575% (from a range of 0.70% to 1.75% in the existing credit agreement), in each case, based on the leverage ratio of the company and its subsidiaries; (iii) amends the applicable facility fee to a range of 0.05% to 0.30% (from a range of 0.05% to 0.50% in the existing credit agreement), due quarterly on all commitments under the amended credit agreement, based on the leverage ratio of the company and its subsidiaries; and (iv) amends the maximum leverage ratio covenant to permit the company, at its option, in connection with certain acquisitions and investments and subject to the terms and conditions provided in the amended credit agreement, to increase the maximum ratio permitted thereunder on one or more occasions to 4.00 to 1.00 for a period of four consecutive fiscal quarters, including and/or immediately following the fiscal quarter in which such acquisitions or investments were completed (the “covenant holiday”), provided that each additional covenant holiday will not be available to the company until it has achieved and maintained a leverage ratio of at least 3.75 to 1.00 and has been complied with for at least two fiscal quarters. The credit facility is a five-year, $500.0 million senior unsecured revolving loan facility. The credit facility contains a provision that permits Flowers to request up to $200.0 million in additional revolving commitments, for a total of up to $700.0 million, subject to the satisfaction of certain conditions. Proceeds from the credit facility may be used for working capital and general corporate purposes, including capital expenditures, acquisition financing, refinancing of indebtedness, dividends and share repurchases. The credit facility includes certain customary restrictions, which, among other things, require maintenance of financial covenants and limit encumbrance of assets and creation of indebtedness. Restrictive financial covenants include such ratios as a minimum interest coverage ratio and a maximum leverage ratio. The company believes that, given its current cash position, its cash flow from operating activities and its available credit capacity, it can comply with the current terms of the amended credit facility and can meet its presently foreseeable financial requirements. As of December 29, 2018 and December 30, 2017, the company was in compliance with all restrictive covenants under the credit facility. The company paid additional financing costs of $0.6 million in connection with the sixth amendment of the credit facility, which, in addition to the remaining balance in financing costs, is being amortized over the life of the credit facility. The company recognized an immaterial amount as interest expense for the modification at the time of the sixth amendment. Amounts outstanding under the credit facility vary daily. Changes in the gross borrowings and repayments can be caused by cash flow activity from operations, capital expenditures, acquisitions, dividends, share repurchases, and tax payments, as well as derivative transactions which are part of the company’s overall risk management strategy as discussed in Note 12, Derivative Financial Instruments Amount (thousands) Balance as of December 30, 2017 $ — Borrowings 5,900 Payments (5,900 ) Balance as of December 29, 2018 $ — The table below presents the net amount available under the credit facility as of December 29, 2018: Amount (thousands) Gross amount available $ 500,000 Outstanding — Letters of credit (8,400 ) Available for withdrawal $ 491,600 The table below presents the highest and lowest outstanding balance under the credit facility during fiscal 2018: Amount (thousands) High balance $ 4,900 Low balance $ — Aggregate debt maturities . Aggregate maturities of debt outstanding, including capital leases, as of December 29, 2018, are as follows (excluding unamortized debt discount and issuance costs) (amounts in thousands): 2019 $ 10,896 2020 183,874 2021 3,886 2022 402,395 2023 2,108 Thereafter 404,533 Total $ 1,007,692 Debt issuance costs and debt discount. The table below reconciles the debt issuance costs and debt discounts to the net carrying value of each of our debt obligations (excluding line-of-credit arrangements) at December 29, 2018 (amounts in thousands): Face Value Debt issuance costs and debt discount Net carrying value 2026 notes $ 400,000 $ 4,450 $ 395,550 2022 notes 400,000 1,577 398,423 Other notes payable 8,750 129 8,621 Total $ 808,750 $ 6,156 $ 802,594 The table below reconciles the debt issuance costs and debt discounts to the net carrying value of each of our debt obligations (excluding line-of-credit arrangements) at December 30, 2017 (amounts in thousands): Face Value Debt issuance costs and debt discount Net carrying value 2026 notes $ 400,000 $ 5,022 $ 394,978 2022 notes 400,000 2,059 397,941 Other notes payable 12,500 333 12,167 Total $ 812,500 $ 7,414 $ 805,086 Leases The company leases certain property and equipment under various operating and capital lease arrangements that expire over the next 18 years. The property leases include distribution facilities, thrift store locations, and two manufacturing facilities. The equipment leases include production, sales, distribution, and office equipment. Initial lease terms range from two to 26 years. Many of the operating leases provide the company with the option, after the initial lease term, either to purchase the property at the then fair value or renew its lease at fair value rents for periods from one month to ten years. Rent escalations vary in these leases, from no escalation over the initial lease term, to escalations linked to changes in economic variables such as the Consumer Price Index. Rental expense is recognized on a straight-line basis over the terms of the leases. The capital leases are primarily used for distribution vehicle financing and are discussed in Note 16, Variable Interest Entities Capital Leases 2019 $ 6,392 2020 3,511 2021 4,191 2022 2,620 2023 2,263 Thereafter 4,631 Total minimum payments 23,608 Amount representing interest 1,666 Obligations under capital leases 21,942 Obligations due within one year 5,896 Long-term obligations under capital leases $ 16,046 The table below presents the total future minimum lease payments under scheduled operating leases that have initial or remaining non-cancelable terms in excess of one year (amounts in thousands): Operating Leases 2019 $ 65,071 2020 60,378 2021 50,744 2022 44,798 2023 36,308 Thereafter 232,423 Total minimum payments $ 489,722 Rent expense for all operating leases was as follows (amounts in thousands): Rent expense Fiscal 2018 $ 90,660 Fiscal 2017 $ 95,014 Fiscal 2016 $ 97,357 Deferred Compensation The Executive Deferred Compensation Plan (“EDCP”) consists of unsecured general obligations of the company to pay the deferred compensation of, and our contributions to, participants in the EDCP. The obligations will rank equally with our other unsecured and unsubordinated indebtedness payable from the company’s general assets. The company’s directors and certain key members of management are eligible to participate in the EDCP. Directors may elect to defer all or any portion of their annual retainer fee and meeting fees. Deferral elections by directors must be made prior to the beginning of each year and are thereafter irrevocable. Eligible employees may elect to defer up to 75% of their base salaries, and up to 100% of any cash bonuses and other compensation through December 31, 2015. Effective January 1, 2016, employees may elect to defer up to 75% of their base salaries, any cash bonuses, and other compensation. Deferral elections by eligible executives must be made prior to the beginning of each year and are thereafter irrevocable during that year. The portion of the participant’s compensation that is deferred depends on the participant’s election in effect with respect to his or her elective contributions under the EDCP. The amounts outstanding at December 29, 2018 and December 30, 2017 were as follows (amounts in thousands): December 29, 2018 December 30, 2017 Deferral elections outstanding $ 15,996 $ 15,732 Current portion of deferral elections 1,015 1,238 Long-term portion of deferral elections $ 14,981 $ 14,494 Guarantees and Indemnification Obligations The company has provided various representations, warranties, and other standard indemnifications in various agreements with customers, suppliers, and other parties as well as in agreements to sell business assets or lease facilities. In general, these provisions indemnify the counterparty for matters such as breaches of representations and warranties, certain environmental conditions and tax matters, and, in the context of sales of business assets, any liabilities arising prior to the closing of the transactions. Non-performance under a contract could trigger an obligation of the company. The ultimate effect on future financial results is not subject to reasonable estimation because considerable uncertainty exists as to the final outcome of any potential claims. No material guarantees or indemnifications have been entered into by the company through December 29, 2018. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 29, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Variable Interest Entities | Note 16. Variable Interest Entities Transportation agreement variable interest entity (the “VIE”) analysis The company maintains a transportation agreement with an entity that transports a significant portion of the company’s fresh bakery products from the company’s production facilities to outlying distribution centers. The company represents a significant portion of the entity’s revenue. This entity qualifies as a VIE, but the company has determined it is not the primary beneficiary of the VIE because the company does not (i) have the ability to direct the significant activities of the VIE and (ii) provide any implicit or explicit guarantees or other financial support to the VIE for specific return or performance benchmarks. In addition, we do not provide, nor do we intend to provide, financial or other support to the entity. The company has concluded that certain of the trucks and trailers the VIE uses for distributing our products from the manufacturing facilities to the distribution centers qualify as right to use leases. As of December 29, 2018 and December 30, 2017, there was $21.9 million and $27.2 million, respectively, in net property, plant and equipment and capital lease obligations associated with the right to use leases. Distribution rights agreement VIE analysis The incorporated IDPs in the DSD Segment qualify as VIEs. The IDPs who are formed as sole proprietorships are excluded from the following VIE accounting analysis and discussion. Incorporated IDPs acquire distribution rights and enter into a contract with the company to sell the company’s products in the IDPs’ defined geographic territory. The incorporated IDPs have the option to finance the acquisition of their distribution rights with the company. They can also pay cash or obtain external financing at the time they acquire the distribution rights. The combination of the company’s loans to the incorporated IDPs and the ongoing distributor arrangements with the incorporated IDPs provide a level of funding to the equity owners of the various incorporated IDPs that would not otherwise be available. As of December 29, 2018 and December 30, 2017, there was $154.4 million and $137.9 million, respectively, in gross distribution rights notes receivable outstanding from incorporated IDPs. The company is not considered to be the primary beneficiary of the VIEs because the company does not (i) have the ability to direct the significant activities of the VIEs that would affect their ability to operate their respective businesses and (ii) provide any implicit or explicit guarantees or other financial support to the VIEs, other than the financing described above, for specific return or performance benchmarks. The activities controlled by the incorporated IDPs that are deemed to most significantly impact the ultimate success of the incorporated IDP entities relate to those decisions inherent in operating the distribution business in the territory, including acquiring trucks and trailers, managing fuel costs, employee matters and other strategic decisions. In addition, we do not provide, nor do we intend to provide, financial or other support to the IDP. The IDPs are responsible for the operations of their respective territories. The company’s maximum contractual exposure to loss for the incorporated IDP relates to the distributor rights note receivable for the portion of the territory the incorporated IDPs financed at the time they acquired the distribution rights. The incorporated IDPs remit payment on their distributor rights note receivable each week during the settlement process of their weekly activity. The company will operate a territory on behalf of an incorporated IDP in situations where the IDP has abandoned its distribution rights. Any remaining balance outstanding on the distribution rights notes receivable is relieved once the distribution rights have been sold on the IDPs behalf. The company’s collateral from the territory distribution rights mitigates the potential losses. |
Fair Value of Financial Instru
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 29, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 17. Fair Value of Financial Instruments The carrying value of cash and cash equivalents, accounts receivable, and short-term debt approximates fair value because of the short-term maturity of the instruments. Notes receivable are entered into in connection with the purchase of distribution rights by IDPs. These notes receivable are recorded in the Consolidated Balance Sheet at carrying value, which represents the closest approximation of fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As a result, the appropriate interest rate that should be used to estimate the fair value of the distribution rights notes is the prevailing market rate at which similar loans would be made to IDPs with similar credit ratings and for the same maturities. However, the company financed approximately 4,300 and 4,000 IDPs’ distribution rights as of December 29, 2018 and December 30, 2017, respectively, all with varied financial histories and credit risks. Considering the diversity of credit risks among the IDPs, the company has no method to accurately determine a market interest rate to apply to the notes. The distribution rights are generally financed for up to ten years and the distribution rights notes are collateralized by the IDPs’ distribution rights. The company maintains a wholly-owned subsidiary to assist in financing the distribution rights purchase activities if requested by new IDPs, using the distribution rights and certain associated assets as collateral. These notes receivable earn interest at a fixed rate. At December 29, 2018 and December 30, 2017, respectively, the carrying value of the distribution rights notes receivable was as follows (amounts in thousands): December 29, 2018 December 30, 2017 Distribution rights notes receivable $ 230,470 $ 211,702 Current portion recorded in accounts and notes receivable, net 26,345 23,965 Long-term portion of distribution rights notes receivable $ 204,125 $ 187,737 At December 29, 2018 and December 30, 2017, the company has evaluated the collectability of the distribution rights notes receivable and determined that a reserve is not necessary. Payments on these notes are collected by the company weekly in conjunction with the IDP settlement process. The fair value of the company’s variable rate debt at December 29, 2018 approximates the recorded value. The fair value of the company’s notes, as discussed in Note 15, Debt, Lease and Other Commitments Carrying Value Fair Value Level 2026 notes $ 395,550 $ 379,344 2 2022 notes $ 398,423 $ 403,852 2 For fair value disclosure information about our derivative assets and liabilities see Note 12, Derivative Financial Instruments Postretirement Plans. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 29, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Note 18. Stockholders’ Equity Flowers Foods’ articles of incorporation provide that its authorized capital consist of 500,000,000 shares of common stock having a par value of $0.01 per share and 1,000,000 shares of preferred stock. The preferred stock of which (a) 200,000 shares have been designated by the Board of Directors as Series A Junior Participating Preferred Stock, having a par value per share of $100 and (b) 800,000 shares of preferred stock, having a par value per share of $0.01, have not been designated by the Board of Directors. No shares of preferred stock have been issued by Flowers Foods. Common Stock The holders of Flowers Foods common stock are entitled to one vote for each share held of record on all matters submitted to a vote of shareholders. Subject to preferential rights of any issued and outstanding preferred stock, including the Series A Preferred Stock, holders of common stock are entitled to receive ratably such dividends, if any, as may be declared by the Board of Directors of the company out of funds legally available. In the event of a liquidation, dissolution, or winding-up of the company, holders of common stock are entitled to share ratably in all assets of the company, if any, remaining after payment of liabilities and the liquidation preferences of any issued and outstanding preferred stock, including the Series A Preferred Stock. Holders of common stock have no preemptive rights, no cumulative voting rights, and no rights to convert their shares of common stock into any other securities of the company or any other person. Preferred Stock The Board of Directors has the authority to issue up to 1,000,000 shares of preferred stock in one or more series and to fix the designations, relative powers, preferences, rights, qualifications, limitations, and restrictions of all shares of each such series, including without limitation, dividend rates, conversion rights, voting rights, redemption and sinking fund provisions, liquidation preferences, and the number of shares constituting each such series, without any further vote or action by the holders of our common stock. Although the Board of Directors does not presently intend to do so, it could issue shares of preferred stock, with rights that could adversely affect the voting power and other rights of holders of our common stock without obtaining the approval of our shareholders. In addition, the issuance of preferred shares could delay or prevent a change in control of the company without further action by our shareholders. Stock Repurchase Plan Our Board of Directors has approved a plan (on December 19, 2002) that currently authorizes share repurchases of up to 74.6 million shares of the company’s common stock. As of December 29, 2018, 6.5 million shares remained available for repurchase under the existing authorization. Under the plan, the company may repurchase its common stock in open market or privately negotiated transactions or under an accelerated repurchase program at such times and at such prices as determined to be in the company’s best interest. The table below presents the shares repurchased under the Stock Repurchase Plan during our fiscal 2018 (amounts in thousands except shares purchased): Fiscal 2018 Quarter Total Number of Shares Purchased Total Cost of Shares Purchased For the quarter ended April 21, 2018 120,147 $ 2,489 For the quarter ended July 14, 2018 — $ — For the quarter ended October 6, 2018 — $ — For the quarter ended December 29, 2018 — $ — Total 120,147 $ 2,489 As of December 29, 2018, 68.0 million shares at a cost of $635.6 million have been purchased since the inception of this plan. Accelerated Share Repurchase Program On March 16, 2016, the company announced that we entered into an accelerated share repurchase program (“ASR”) agreement to repurchase an aggregate of $120.0 million of the company’s common stock. Under the terms of the ASR, the company paid $120.0 million in cash and received an initial delivery of 5.6 million shares immediately. The final number of shares repurchased was based on the daily volume-weighted average stock price over the life of the transaction, less a negotiated discount. During the second quarter of fiscal 2016, a total of 0.9 million shares were issued to the company at the time of final settlement. The ASR met all applicable criteria for equity classification and, therefore, was not accounted for as a derivative instrument. Shares repurchased under the ASR were added to our treasury shares. The company funded the ASR with borrowings on its credit facility and cash on hand. Dividends During fiscal years 2018, 2017, and 2016, the company paid the following dividends, excluding dividends on vested stock-based compensation awards discussed in Note 19, Stock-Based Compensation Dividends paid Dividends paid per share Fiscal 2018 $ 149,716 $ 0.7100 Fiscal 2017 $ 140,429 $ 0.6700 Fiscal 2016 $ 130,490 $ 0.6250 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 29, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 19. Stock-Based Compensation On March 5, 2014, our Board of Directors approved and adopted the 2014 Omnibus Equity and Incentive Compensation Plan (“Omnibus Plan”). The Omnibus Plan was approved by our shareholders on May 21, 2014. The Omnibus Plan authorizes the compensation committee of the Board of Directors to provide equity-based compensation in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units, dividend equivalents and other awards for the purpose of providing our officers, key employees, and non-employee directors’ incentives and rewards for performance. The Omnibus Plan replaced the Flowers Foods’ 2001 Equity and Performance Incentive Plan, as amended and restated as of April 1, 2009 (“EPIP”), the Stock Appreciation Rights Plan, and the Annual Executive Bonus Plan. All outstanding equity awards that were made under the EPIP will continue to be governed by the EPIP; however, all equity awards granted after May 21, 2014 are governed by the Omnibus Plan. No additional awards will be issued under the EPIP. Awards granted under the Omnibus Plan are limited to the authorized amount of 8,000,000 shares. The EPIP authorized the compensation committee of the Board of Directors to make awards of options to purchase our common stock, restricted stock, performance stock and units and deferred stock. The company’s officers, key employees and non-employee directors (whose grants are generally approved by the full Board of Directors) were eligible to receive awards under the EPIP. Over the life of the EPIP, the company issued options, restricted stock and deferred stock. The following is a summary of stock options, restricted stock, and deferred stock outstanding under the plans described above. Information relating to the company’s stock appreciation rights, which were issued under a separate stock appreciation right plan, is also described below. There were no share-based payment grants to employees during fiscal 2018. Stock Options The company issued non-qualified stock options (“NQSOs”) during fiscal years 2011 and prior that have all been fully exercised. The stock option activity for fiscal years 2018, 2017, and 2016 pursuant to the EPIP is set forth below (amounts in thousands, except price data): Fiscal 2018 Fiscal 2017 Fiscal 2016 Options Weighted Average Exercise Price Options Weighted Average Exercise Price Options Weighted Average Exercise Price Outstanding at beginning of year 73 $ 10.87 1,846 $ 10.89 4,353 $ 10.97 Exercised (73 ) $ 10.87 (1,773 ) $ 10.89 (2,507 ) $ 11.02 Outstanding at end of year — $ — 73 $ 10.87 1,846 $ 10.89 Exercisable at end of year — 73 1,846 The cash received, the windfall tax benefits, and intrinsic value from stock option exercises for fiscal years 2018, 2017, and 2016 are set forth below (amounts in thousands): Fiscal 2018 Fiscal 2017 Fiscal 2016 Cash received from option exercises $ 791 $ 19,313 $ 27,631 Cash tax windfall benefit, net $ 111 $ 4,186 $ 3,746 Intrinsic value of stock options exercised $ 609 $ 14,994 $ 15,778 Performance-Contingent Restricted Stock Awards Performance-Contingent Total Shareholder Return Shares (“TSR Shares”) Since 2012, certain key employees have been granted performance-contingent restricted stock under the EPIP and the Omnibus Plan in the form of TSR Shares. The awards generally vest approximately two years from the date of grant (after the filing of the company’s Annual Report on Form 10-K), and the shares become non-forfeitable if, and to the extent that, on that date the vesting conditions are satisfied. As a result of the delay (July as opposed to January) in the grant of the 2012 awards, the 2012 awards vested during the first quarter of 2014, 18 months from the grant date. Awards granted subsequent to the 2012 award (granted during the first quarters of their respective years) vest two years from the date of grant. The total shareholder return (“TSR”) is the percent change in the company’s stock price over the measurement period plus the dividends paid to shareholders. The performance payout is calculated at the end of each of the last four quarters (averaged) in the measurement period. Once the TSR is determined for the company (“Company TSR”), it is compared to the TSR of our food company peers (“Peer Group TSR”). The Company TSR compared to the Peer Group TSR will determine the payout as set forth below (the “TSR Modifier”): Percentile Payout as % of Target 90th 200 % 70th 150 % 50th 100 % 30th 50 % Below 30th 0 % For performance between the levels described above, the degree of vesting is interpolated on a linear basis. The table below presents the payout percentage for each of the TSR awards: Award Fiscal year Payout (%) 2014 award Fiscal 2016 27 2015 award Fiscal 2017 0 2016 award Fiscal 2018 12.5 The TSR shares vest immediately if the grantee dies or becomes disabled. However, if the grantee retires at age 65 (or age 55 with at least 10 years of service with the company) or later, on the normal vesting date the grantee will receive a pro-rated number of shares based upon the retirement date and measured at the actual performance for the entire performance period. In addition, if the company undergoes a change in control, the TSR shares will immediately vest at the target level, provided that if 12 months of the performance period have been completed, vesting will be determined based on Company TSR as of the date of the change in control without application of four-quarter averaging. During the vesting period, the grantee has none of the rights of a shareholder. Dividends declared during the vesting period will accrue and will be paid at vesting on the shares that ultimately vest. The fair value estimate was determined using a Monte Carlo The following performance-contingent TSR Shares have been granted under the Omnibus Plan and have service period remaining (amounts in thousands, except price data): Grant date January 1, 2017 Shares granted 426 Assumed vesting date 3/1/2019 Fair value per share $ 23.31 As of December 29, 2018, there was $0.7 million of total unrecognized compensation cost related to nonvested TSR Shares granted under the Omnibus Plan. That cost is expected to be recognized over a weighted-average period of 0.17 years. There were no TSR Shares granted by our Board of Directors in fiscal 2018. Performance-Contingent Return on Invested Capital Shares (“ROIC Shares”) Since 2012, certain key employees have been granted performance-contingent restricted stock under the EPIP and the Omnibus Plan in the form of ROIC Shares. The awards generally vest approximately two years from the date of grant (after the filing of the company’s Annual Report on Form 10-K), and the shares become non-forfeitable if, and to the extent that, on that date, the vesting conditions are satisfied. As a result of the delay (July as opposed to January) in the grant of the 2012 awards, the 2012 awards vested during the first quarter of 2014, 18 months from the grant date. Awards granted subsequent to the 2012 award (granted during the first quarters of their respective years) vest two years from the date of grant. Return on Invested Capital is calculated by dividing our profit, as defined, by the invested capital (“ROIC”). Generally, the performance condition requires the company’s average ROIC to exceed its average weighted cost of capital (“WACC”) by between 1.75 to 4.75 percentage points (the “ROI Target”) over the two fiscal year performance period. If the lowest ROI Target is not met, the awards are forfeited. The shares can be earned based on a range from 0% to 125% of target as defined below (the “ROIC Modifier”): • 0% payout if ROIC exceeds WACC by less than 1.75 percentage points; • ROIC above WACC by 1.75 percentage points pays 50% of ROI Target; or • ROIC above WACC by 3.75 percentage points pays 100% of ROI Target; or • ROIC above WACC by 4.75 percentage points pays 125% of ROI Target. For performance between the levels described above, the degree of vesting is interpolated on a linear basis. The table below presents the payout percentage for each of the ROIC awards: Award Fiscal year Payout (%) 2014 award Fiscal 2016 96 2015 award Fiscal 2017 87 2016 award Fiscal 2018 70 The ROIC Shares vest immediately if the grantee dies or becomes disabled. However, if the grantee retires at age 65 (or age 55 with at least 10 years of service with the company) or later, on the normal vesting date the grantee will receive a pro-rated number of shares based upon the retirement date and actual performance for the entire performance period. In addition, if the company undergoes a change in control, the ROIC Shares will immediately vest at the target level. During the vesting period, the grantee has none of the rights of a shareholder. Dividends declared during the vesting period will accrue and will be paid at vesting on the shares that ultimately vest. The fair value of this type of award is equal to the stock price on the grant date. Since these awards have a performance condition feature the expense associated with these awards may change depending on the expected ROI Target attained at each reporting period. The expected ROI Target for expense calculations at December 29, 2018 was 80% for the 2017 award. The following performance-contingent ROIC Shares have been granted under the Omnibus Plan and have service period remaining (amounts in thousands, except price data): Grant date January 1, 2017 Shares granted 426 Assumed vesting date 3/1/2019 Fair value per share $ 19.97 As of December 29, 2018, there was $0.5 million of total unrecognized compensation cost related to nonvested ROIC Shares granted under the EPIP. This cost is expected to be recognized over a weighted-average period of 0.17 years. There were no ROIC Shares granted by our Board of Directors in fiscal 2018. Performance-Contingent Restricted Stock Summary The table below presents the TSR Modifier share adjustment, ROIC Modifier share adjustment, accumulated dividends on vested shares, and the tax windfall/shortfall at vesting of the performance-contingent restricted stock awards (amounts in thousands except for share data): Award granted Fiscal year vested TSR Modifier increase/(decrease) shares ROIC Modifier increase/(decrease) shares Dividends at vesting (thousands) Tax windfall/(shortfall) Fair value at vesting 2016 2018 (333,112 ) (114,190 ) $ 405 $ (2,130 ) $ 6,504 2015 2017 (378,219 ) (49,272 ) $ 392 $ (3,103 ) $ 6,316 2014 2015 (248,872 ) (13,637 ) $ 441 $ (3,090 ) $ 7,173 A summary of the status of all of the company’s nonvested shares for performance-contingent restricted stock (including the TSR Shares and the ROIC Shares) for fiscal 2018, 2017 and 2016 is set forth below (amounts in thousands, except price data): Fiscal 2018 Fiscal 2017 Fiscal 2016 Number of Shares Weighted Average Fair Value Number of Shares Weighted Average Fair Value Number of Shares Weighted Average Fair Value Balance at beginning of year 1,575 $ 22.20 1,543 $ 21.53 1,349 $ 21.26 Initial grant — $ — 855 $ 21.61 801 $ 22.83 Vested (314 ) $ 21.89 (329 ) $ 19.14 (312 ) $ 22.02 Grant reduction for not achieving the ROIC modifier (114 ) $ 21.49 (49 ) $ 19.14 (249 ) $ 23.97 Grant reduction for not achieving the TSR modifier (333 ) $ 24.17 (378 ) $ 21.21 (14 ) $ 21.47 Forfeitures (35 ) $ 22.83 (67 ) $ 21.08 (32 ) $ 23.60 Balance at end of year 779 $ 21.64 1,575 $ 22.20 1,543 $ 21.53 As of December 29, 2018, there was $1.1 million of total unrecognized compensation cost related to nonvested restricted stock granted under the EPIP. This cost is expected to be recognized over a weighted-average period of 0.17 years. Deferred and Restricted Stock Non-employee directors may convert their annual board retainers into deferred stock equal in value to 100% of the cash payments directors would otherwise receive and the vesting period is a one-year period to match the period of time that cash would have been received if no conversion existed. Accumulated dividends are paid upon delivery of the shares. Non-employee directors received aggregate grants of 12,950 common shares for board retainer deferrals during fiscal 2018. Non-employee directors also receive annual grants of deferred stock. This deferred stock vests over one year from the grant date. During fiscal 2018, non-employee directors were granted an aggregate of 65,000 shares of deferred stock pursuant to the Omnibus Plan. The deferred stock will be distributed to the grantee at a time designated by the grantee at the date of grant. Compensation expense is recorded on deferred stock over the vesting period. During fiscal 2018, a total of 98,920 previously deferred shares were issued after the deferral period. On May 31, 2013, the company’s Chief Executive Officer (“CEO”) received a time-based restricted stock award of approximately $1.3 million of restricted stock pursuant to the EPIP. This award vested at 100% on the fourth anniversary of the date of grant. Dividends accrued on the award and were paid to the CEO on the vesting date. There were 58,500 shares issued for this award at a fair value of $22.25 per share. This award vested at a price of $18.48 and the shares were issued in our second quarter of fiscal 2017. The deferred and restricted stock activity for fiscal years 2018, 2017, and 2016 is set forth below (amounts in thousands, except price data): Fiscal 2018 Fiscal 2017 Fiscal 2016 Number of Shares Weighted Average Fair Value Number of Shares Weighted Average Fair Value Number of Shares Weighted Average Fair Value Nonvested shares at beginning of year 87 $ 18.70 149 $ 20.39 126 $ 21.89 Granted 78 $ 19.90 87 $ 18.70 95 $ 19.30 Vested (99 ) $ 18.70 (149 ) $ 20.39 (72 ) $ 21.59 Nonvested shares at end of year 66 $ 19.93 87 $ 18.70 149 $ 20.39 Vested and deferred shares at end of year 198 192 331 As of December 29, 2018, there was $0.5 million of total unrecognized compensation cost related to deferred and restricted stock awards. This cost is expected to be recognized over a weighted-average period of 0.41 years. The intrinsic value of deferred stock awards that vested during fiscal 2018 was $2.0 million. There was an immaterial tax windfall on the exercise of deferred share awards during fiscal 2018. Stock Appreciation Rights Prior to 2007, the company allowed non-employee directors to convert their retainers and committee chair fees into rights. These rights vested after one year and were exercisable over nine years. The company recorded compensation expense for these rights at a measurement date based on changes between the grant price and an estimated fair value of the rights using the Black-Scholes Share-Based Payments Compensation Expense Summary The following table summarizes the company’s stock-based compensation expense, all of which was recognized in selling, distribution, and administration expense, for fiscal years 2018, 2017 and 2016 (amounts in thousands): Fiscal 2018 Fiscal 2017 Fiscal 2016 Performance-contingent restricted stock awards $ 6,504 $ 14,326 $ 16,611 Deferred stock awards 1,644 1,767 2,161 Stock appreciation rights income — — (11 ) Total stock-based compensation expense $ 8,148 $ 16,093 $ 18,761 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) ("AOCI") | 12 Months Ended |
Dec. 29, 2018 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) ("AOCI") | Note 20. Accumulated Other Comprehensive Income (Loss) (“AOCI”) The company’s total comprehensive loss presently consists of net income, adjustments for our derivative financial instruments accounted for as cash flow hedges, and various pension and other postretirement benefit related items. During fiscal years 2018, 2017, and 2016, reclassifications out of AOCI were as follows (amounts in thousands): Amount Reclassified from AOCI Affected Line Item in the Statement Details about AOCI Components (Note 2) Fiscal 2018 Fiscal 2017 Fiscal 2016 Where Net Income is Presented Derivative instruments: Interest rate contracts $ (142 ) $ (142 ) $ (221 ) Interest expense Commodity contracts (1,301 ) (2,080 ) (5,307 ) Cost of sales, Note 3, below Total before tax $ (1,443 ) $ (2,222 ) $ (5,528 ) Total before tax Tax benefit 364 855 2,129 Tax benefit Total net of tax $ (1,079 ) $ (1,367 ) $ (3,399 ) Net of tax Pension and postretirement plans: Prior-service credits $ (175 ) $ (175 ) $ (175 ) Note 1, below Settlement loss (7,781 ) (4,649 ) (6,646 ) Note 1, below Actuarial losses (5,380 ) (5,858 ) (6,840 ) Note 1, below Total before tax $ (13,336 ) $ (10,682 ) $ (13,661 ) Total before tax Tax benefit 3,368 3,899 5,260 Tax benefit Total net of tax $ (9,968 ) $ (6,783 ) $ (8,401 ) Net of tax benefit Total reclassifications from AOCI $ (11,047 ) $ (8,150 ) $ (11,800 ) Net of tax benefit Note 1: These items are included in the computation of net periodic pension cost. See Note 22, Postretirement Plans Note 2: Amounts in parentheses indicate debits to determine net income. Note 3: Amounts are presented as an adjustment to reconcile net income to net cash provided by operating activities on the Consolidated Statements of Cash Flows. During fiscal years 2018, 2017, and 2016, amounts recognized in AOCI, exclusive of reclassifications, were as follows (amounts in thousands): Amount of Gain (Loss) Recognized in AOCI AOCI component Fiscal 2018 Fiscal 2017 Fiscal 2016 Derivative instruments: Interest rate contracts $ — $ — $ 1,083 Commodity contracts 3,984 (9,734 ) 8,233 Total before tax $ 3,984 $ (9,734 ) $ 9,316 Tax benefit (1,006 ) 2,945 (3,586 ) Total net of tax $ 2,978 $ (6,789 ) $ 5,730 Pension and postretirement plans: Current year actuarial loss $ (26,528 ) $ (4,307 ) $ (6,525 ) Total before tax $ (26,528 ) $ (4,307 ) $ (6,525 ) Tax benefit 6,697 1,670 2,512 Total net of tax $ (19,831 ) $ (2,637 ) $ (4,013 ) Total recognized in AOCI $ (16,853 ) $ (9,426 ) $ 1,717 During fiscal 2018, changes to AOCI, net of income tax, by component were as follows (amounts in thousands): Cash Flow Hedge Items Defined Benefit Pension Plan Items Total AOCI at December 30, 2017 $ (6,483 ) $ (78,076 ) $ (84,559 ) Other comprehensive gain (loss) before reclassifications 2,978 (19,831 ) (16,853 ) Reclassified to earnings from AOCI 1,079 9,968 11,047 Reclassified to retained earnings from AOCI (1,709 ) (17,097 ) (18,806 ) AOCI at December 29, 2018 $ (4,135 ) $ (105,036 ) $ (109,171 ) During fiscal 2017, changes to AOCI, net of income tax, by component were as follows (amounts in thousands): Cash Flow Hedge Items Defined Benefit Pension Plan Items Total AOCI at December 31, 2016 $ (1,061 ) $ (82,222 ) $ (83,283 ) Other comprehensive loss before reclassifications (6,789 ) (2,637 ) (9,426 ) Reclassified to earnings from AOCI 1,367 6,783 8,150 AOCI at December 30, 2017 $ (6,483 ) $ (78,076 ) $ (84,559 ) Amounts reclassified out of AOCI to net income that relate to commodity contracts are presented as an adjustment to reconcile net income to net cash provided by operating activities on the Consolidated Statements of Cash Flows. The following table presents the net of tax amount of the loss reclassified from AOCI for our commodity contracts (amounts in thousands): Fiscal 2018 Fiscal 2017 Fiscal 2016 Gross loss reclassified from AOCI into income $ 1,301 $ 2,080 $ 5,307 Tax benefit (329 ) (801 ) (2,043 ) Net of tax $ 972 $ 1,279 $ 3,264 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 29, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 21. Earnings Per Share The following is a reconciliation of net income and weighted average shares for calculating basic and diluted earnings per common share for fiscal years 2018, 2017, and 2016 (amounts in thousands, except per share data): Fiscal 2018 Fiscal 2017 Fiscal 2016 Net income $ 157,160 $ 150,120 $ 163,776 Basic Earnings Per Common Share: Basic weighted average shares outstanding per common share 211,016 209,573 208,511 Basic earnings per common share $ 0.74 $ 0.72 $ 0.79 Diluted Earnings Per Common Share: Basic weighted average shares outstanding per common share 211,016 209,573 208,511 Add: Shares of common stock assumed issued upon exercise of stock options, vesting of performance-contingent restricted stock and deferred stock 616 862 1,843 Diluted weighted average shares outstanding per common share 211,632 210,435 210,354 Diluted earnings per common share $ 0.74 $ 0.71 $ 0.78 There were 380,015 anti-dilutive shares during fiscal 2017. There were no anti-dilutive shares for fiscal years 2018 or 2016. |
Postretirement Plans
Postretirement Plans | 12 Months Ended |
Dec. 29, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Postretirement Plans | Note 22. Postretirement Plans The following summarizes the company’s balance sheet related pension and other postretirement benefit plan accounts at December 29, 2018 and December 30, 2017 (amounts in thousands): December 29, 2018 December 30, 2017 Current benefit liability $ 1,283 $ 935 Noncurrent benefit liability $ 39,149 $ 60,107 Accumulated other comprehensive loss, net of tax $ 105,036 $ 78,076 On September 28, 2018, the Board of Directors approved a resolution to terminate the Flowers Foods, Inc. Retirement Plan No. 1 (“Plan No. 1”), effective December 31, 2018. The company has commenced the plan termination process and expects to distribute a portion of the pension plan assets as lump sum payments during early 2020 with the remaining balance transferred to an insurance company in the form of an annuity. The total payments distributed will depend on the lump sum offer participation rate of eligible participants. Based on the estimated value of assets held in the plan, the company currently estimates that a cash contribution of approximately $5.0 million to $35.0 million will be required to fully fund the plan’s liabilities at termination. In addition, based on current assumptions, the company estimates a final non-cash settlement charge of approximately $125.0 million. The company amended our qualified defined benefit plans in October 2015 to allow pension plan participants not yet receiving benefit payments the option to elect to receive their benefit as a single lump sum payment. This amendment was effective as of January 1, 2016. The company continues to recognize settlement accounting charges each year as a result of the ongoing lump sum payments from the plan. Settlement accounting, which accelerates recognition of a plan’s unrecognized net gain or loss, is triggered if the lump sums paid during a year exceeds the sum of the plan’s service and interest cost. The company determined it was probable a settlement would occur and paid lump sums that exceeded that threshold during our first quarter of fiscal 2018 and, as a result, recorded settlement charges in each quarter of fiscal 2018. The table below presents the recognized settlement charges by quarter for fiscal years 2018, 2017, and 2016 (amounts in thousands): Settlement loss by fiscal quarter Fiscal 2018 Fiscal 2017 Fiscal 2016 Quarter 1 $ 4,668 $ — $ — Quarter 2 1,035 — 4,641 Quarter 3 930 3,030 1,832 Quarter 4 1,148 1,619 173 Total $ 7,781 $ 4,649 $ 6,646 The company used a measurement date of December 31, 2018 for the defined benefit and postretirement benefit plans described below. The company voluntarily contributed $10.0 million during our first quarter of fiscal 2018, $30.0 million during our second quarter of fiscal 2018, and $0.1 million during our third quarter of fiscal 2018 to Plan No. 1. A voluntary contribution of $0.6 million was made to Plan No. 2 during the third quarter of fiscal 2018. Pension Plans The company has trusteed, noncontributory defined benefit pension plans covering certain current and former employees. Benefits under the company’s largest pension plan are frozen. The company continues to maintain an ongoing plan that covers a small number of certain union employees. The benefits in this plan are based on years of service and the employee’s career earnings. The qualified plans are funded at amounts deductible for income tax purposes but not less than the minimum funding required by the Employee Retirement Income Security Act of 1974 (“ERISA”) and the Pension Protection Act of 2006 (“PPA”). The company uses a calendar year end for the measurement date since the plans are based on a calendar year end and because it approximates the company’s fiscal year end. As of December 31, 2018 and December 31, 2017, the assets of the qualified plans included certificates of deposit, marketable equity securities, mutual funds, corporate and government debt securities, other diversifying strategies and annuity contracts. The company expects pension cost of approximately $3.0 million for fiscal 2019. The net periodic pension cost (income) for the company’s pension plans includes the following components for fiscal years 2018, 2017 and 2016 (amounts in thousands): Fiscal 2018 Fiscal 2017 Fiscal 2016 Service cost $ 937 $ 755 $ 830 Interest cost 12,513 12,852 13,682 Expected return on plan assets (18,831 ) (25,669 ) (26,644 ) Settlement loss 7,781 4,649 6,646 Amortization: Prior service cost 387 387 387 Actuarial loss 5,811 6,355 7,294 Net periodic pension cost (income) 8,598 (671 ) 2,195 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Current year actuarial loss (gain) 25,492 4,119 8,879 Settlement loss (7,781 ) (4,649 ) (6,646 ) Amortization of prior service cost (387 ) (387 ) (387 ) Amortization of actuarial loss (5,811 ) (6,355 ) (7,294 ) Total recognized in other comprehensive (loss) income 11,513 (7,272 ) (5,448 ) Total recognized in net periodic benefit cost and other comprehensive loss $ 20,111 $ (7,943 ) $ (3,253 ) Actual return on plan assets for fiscal years 2018, 2017, and 2016 was $2.4 million, $42.1 million, and $4.7 million, respectively. Approximately $7.5 million will be amortized from accumulated other comprehensive income into net periodic benefit cost in fiscal 2019 relating to the company’s pension plans. The funded status and the amounts recognized in the Consolidated Balance Sheets for the company’s pension plans are as follows (amounts in thousands): December 29, 2018 December 30, 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 393,952 $ 398,595 Service cost 937 755 Interest cost 12,513 12,852 Actuarial loss 9,098 20,526 Benefits paid (23,843 ) (24,408 ) Settlements (24,879 ) (14,368 ) Benefit obligation at end of year $ 367,778 $ 393,952 Change in plan assets: Fair value of plan assets at beginning of year $ 340,854 $ 335,663 Actual return on plan assets 2,437 42,076 Employer contribution 40,971 1,891 Benefits paid (23,843 ) (24,408 ) Settlements (24,879 ) (14,368 ) Fair value of plan assets at end of year $ 335,540 $ 340,854 Funded status, end of year: Fair value of plan assets $ 335,540 $ 340,854 Benefit obligations (367,778 ) (393,952 ) Unfunded status and amount recognized at end of year $ (32,238 ) $ (53,098 ) Amounts recognized in the balance sheet: Current liability (258 ) (260 ) Noncurrent liability (31,980 ) (52,838 ) Amount recognized at end of year $ (32,238 ) $ (53,098 ) Amounts recognized in accumulated other comprehensive income: Net actuarial loss before taxes $ 137,903 $ 126,002 Prior service cost before taxes 5,039 5,426 Amount recognized at end of year $ 142,942 $ 131,428 Accumulated benefit obligation at end of year $ 366,709 $ 392,057 Assumptions used in accounting for the company’s pension plans at each of the respective fiscal years ending are as follows: Fiscal 2018 Fiscal 2017 Fiscal 2016 Weighted average assumptions used to determine benefit obligations: Measurement date 12/31/2018 12/31/2017 12/31/2016 Discount rate 3.41 % 3.58 % 4.00 % Rate of compensation increase 3.00 % 3.00 % 3.00 % Weighted average assumptions used to determine net periodic benefit cost/(income): Measurement date 1/1/2018 1/1/2017 1/1/2016 Discount rate 3.58 % 4.00 % 4.25 % Expected return on plan assets 5.34 % 8.00 % 8.00 % Rate of compensation increase 3.00 % 3.00 % 3.00 % In developing the expected long-term rate of return on plan assets at each measurement date, the company considers the plan assets’ historical actual returns, targeted asset allocations, and the anticipated future economic environment and long-term performance of individual asset classes, based on the company’s investment strategy. While appropriate consideration is given to recent and historical investment performance, the assumption represents management’s best estimate of the long-term prospective return. Further, pension costs do not include an explicit expense assumption, and therefore the return on assets rate reflects the long-term expected return, net of expenses. The long-term expected rate of return, net of expenses, for the defined benefit plans was 5.9% at the March 31, 2018 re-measurement. When Plan No. 1 was re-measured as of June 30, 2018 and September 30, 2018, the expected return was changed from 5.9% to 5.2% due to re-balancing the plan asset allocation to a fixed income rather than an equity objective as part of our pension de-risking strategy. The plan administrator has separated the assets of Plan No. 1 and Plan No. 2 and will manage the assets with different investment objectives. Historically, these assets were collectively managed. The termination path for Plan No. 1 results in a short term conservative investment outlook while Plan No. 2 is still managed with a long-term investment outlook. Based on these factors the expected long-term rate of return assumption for Plan No. 1 was set at 5.2% for fiscal 2019. The expected long-term rate of return assumption for Plan No. 2 was set at 7.4% for fiscal 2019. The average annual return on the plan assets over the last 15 years (while the assets were collectively managed) was approximately 6.9% (net of expenses). Plan Assets Effective January 1, 2014, the Finance Committee (“committee”) of the Board of Directors delegated its fiduciary and other responsibilities with respect to the plans to the newly established Investment Committee. The Investment Committee, which consists of certain members of management, establishes investment guidelines and strategies and regularly monitors the performance of the plans’ assets. The Investment Committee is responsible for executing these strategies and investing the pension assets in accordance with ERISA and fiduciary standards. The investment objective of the pension plans is to preserve the plans’ capital and maximize investment earnings within acceptable levels of risk and volatility. The Investment Committee meets on a regular basis with its investment advisors to review the performance of the plans’ assets. Based upon performance and other measures and recommendations from its investment advisors, the Investment Committee rebalances the plans’ assets to the targeted allocation when considered appropriate. The fair values of all of the company pension plan assets at December 31, 2018 and December 31, 2017, by asset class are as follows (amounts in thousands): Fair value of Pension Plan Assets as of December 31, 2018 Asset Class Quoted prices in active markets for identical assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Short term investments and cash $ — $ 34,118 $ — $ 34,118 Fixed income securities: U.S. government bonds — 4,581 — 4,581 U.S. government agency bonds — 3,561 — 3,561 U.S. corporate bonds — 166,670 — 166,670 International corporate bonds — 53,709 — 53,709 Other types of investments measured at contract value (^): Guaranteed insurance contracts(a) — — — 10,853 Pending transactions(b) — — — 59,452 Other assets and (liabilities)(b) — — — 2,636 Accrued (expenses) income(b) — — — (40 ) Total $ — $ 262,639 $ — $ 335,540 Fair value of Pension Plan Assets as of December 31, 2017 Asset Class Quoted prices in active markets for identical assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Short term investments and cash $ — $ 19,771 $ — $ 19,771 Equity securities: U.S. companies 65,414 — — 65,414 International companies 665 — — 665 Domestic equity funds(c) 19,879 — — 19,879 International equity funds(d) 22,178 — — 22,178 Fixed income securities: U.S. government bonds — 6,538 — 6,538 U.S. government agency bonds — 10,531 — 10,531 U.S. mortgage backed securities — 3,004 — 3,004 U.S. corporate bonds — 9,993 — 9,993 Other types of investments measured at net asset value (*): Hedged equity funds(e) — — — 35,054 Absolute return funds(f) — — — 52,704 International equity funds(d) — — — 22,878 Other types of investments measured at contract value (^): Guaranteed insurance contracts(a) — — — 10,457 Pending transactions(b) — — — 62,000 Other assets and (liabilities)(b) — — — (133 ) Accrued (expenses) income(b) — — — (79 ) Total $ 108,136 $ 49,837 $ — $ 340,854 (a) This class invests primarily guaranteed insurance contracts through various U.S. insurance companies. (b) This class includes accrued interest, dividends, and amounts receivable from asset sales and amounts payable for asset purchases. ( c ) This class includes funds with the principal strategy to invest primarily in long positions in domestic equity securities. ( d ) This class includes funds with the principal strategy to invest primarily in long positions in international equity securities. This asset was reclassified from a Level 2 to a Level 1 type for all periods. This asset was incorrectly presented as a Level 2. (e) This class invests primarily in hedged equity funds. ( f ) This class invests primarily in absolute return strategy funds and are reported at NAV. (*) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. (^) Certain investments, which are fully-benefit responsive investment contracts, are measured at contract value and have not been classified in the fair value hierarchy. The company’s investment policy includes various guidelines and procedures designed to ensure the plan’s assets are invested in a manner necessary to meet expected future benefits earned by participants. The investment guidelines consider a broad range of economic conditions. The plan asset allocation as of the measurement dates December 31, 2018 and December 31, 2017, and target asset allocations for fiscal year 2019 are as follows for Plan No. 1: Target Allocation Percentage of Plan Assets at the Measurement Date (As percent) Asset Category 2019 2018 2017 Equity securities 0 % 2.5 38.6 Fixed income securities 90-100% 73.7 27.1 Other diversifying strategies(1) 0 % 15.0 28.8 Short term investments and cash 0-10% 8.8 5.5 Total 100.0 100.0 (1) Includes absolute return funds, hedged equity funds, and guaranteed insurance contracts. The plan asset allocation as of the measurement dates December 31, 2018 and December 31, 2017, and target asset allocations for fiscal year 2019 are as follows for Plan No. 2: Target Allocation Asset Category 2019 Equity securities 0-80% Fixed income securities 20-100% Short term investments and cash 0-10% Total (1) Includes absolute return funds, hedged equity funds, and guaranteed insurance contracts. Equity securities at December 31, 2017 include 2,030,363 shares of the company’s common stock in the amount of $39.2 million (11.5% of total plan assets). The plan sold all the company’s common stock during fiscal 2018. The total proceeds were $41.0 million to the plans. The objectives of the target allocations are to maintain investment portfolios that diversify risk through prudent asset allocation parameters, achieve asset returns that meet or exceed the plans’ actuarial assumptions, and achieve asset returns that are competitive with like institutions employing similar investment strategies. Cash Flows Company contributions to qualified and nonqualified plans are as follows (amounts in thousands): Year Required Discretionary Total 2018 $ 271 $ 40,700 $ 40,971 2017 $ 286 $ 1,605 $ 1,891 2016 $ 341 $ 1,000 $ 1,341 All contributions are made in cash. The required contributions made during fiscal 2018 include $0.3 million in nonqualified pension benefits paid from corporate assets. The discretionary contributions of $40.7 million made to qualified plans during fiscal 2018 were not required to be made by the minimum funding requirements of ERISA, but the company believed, due to its strong cash flow and financial position, this was an appropriate time at which to make the contribution to reduce the impact of future contributions. During fiscal 2019, the company expects to make a $2.5 million contribution to our qualified pension plans and expects to pay $0.3 million in nonqualified pension benefits from corporate assets. These amounts represent estimates that are based on assumptions that are subject to change. Benefit Payments The following are benefits paid under the plans (including settlements) during fiscal years 2018, 2017 and 2016 and expected to be paid from fiscal 2019 through fiscal 2028. Estimated future payments include qualified pension benefits that will be paid from the plans’ assets (including potential payments related to the termination of Plan No. 1 discussed above) and nonqualified pension benefits that will be paid from corporate assets (amounts in thousands): Year Pension Benefits 2016 $ 40,864 * 2017 $ 38,776 ^ 2018 $ 48,722 + Estimated Future Payments: 2019 $ 31,431 2020 $ 327,280 2021 $ 2,630 2022 $ 2,715 2023 $ 2,585 2024 – 2028 $ 11,135 * Includes $15.7 million and $1.6 million from Plan No. 1 and Plan No. 2, respectively, paid as lump sums. ^ Includes $14.4 million and $1.6 million from Plan No. 1 and Plan No. 2, respectively, paid as lump sums. + Includes $24.9 million and $1.5 million from Plan No. 1 and Plan No. 2, respectively, paid as lump sums. Postretirement Benefit Plans The company sponsors postretirement benefit plans that provide health care and life insurance benefits to retirees who meet certain eligibility requirements. Generally, this includes employees with at least 10 years of service who have reached age 55 and participate in a Flowers retirement plan. Retiree medical coverage is provided for a period of three to five years, depending on the participant’s age and service at retirement. Participant premiums are determined using COBRA premium levels. Retiree life insurance benefits are offered to a closed group of retirees. The company also sponsors a medical, dental, and life insurance benefits plan to a limited and closed group of participants. The company delivers retiree medical and dental benefits for Medicare eligible retirees through a health-care reimbursement account. The company no longer sponsors a medical plan for Medicare eligible retirees and does not file for a Medicare Part D subsidy. The net periodic benefit (income) cost for the company’s postretirement benefit plans includes the following components for fiscal years 2018, 2017 and 2016 (amounts in thousands): Fiscal 2018 Fiscal 2017 Fiscal 2016 Service cost $ 288 $ 256 $ 401 Interest cost 234 227 309 Amortization: Prior service credit (212 ) (212 ) (212 ) Actuarial gain (431 ) (497 ) (454 ) Total net periodic benefit income (121 ) (226 ) 44 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Current year actuarial loss (gain) 1,036 188 (2,354 ) Amortization of actuarial gain 431 497 454 Amortization of prior service credit 212 212 212 Total recognized in other comprehensive loss (income) 1,679 897 (1,688 ) Total recognized in net periodic benefit cost and other comprehensive loss (income) $ 1,558 $ 671 $ (1,644 ) Approximately $(0.3) million will be amortized from accumulated other comprehensive income into net periodic benefit cost in fiscal year 2019 relating to the company’s postretirement benefit plans. The unfunded status and the amounts recognized in the Consolidated Balance Sheets for the company’s postretirement benefit plans are as follows (amounts in thousands): December 29, 2018 December 30, 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 7,943 $ 7,648 Service cost 288 256 Interest cost 234 227 Participant contributions 823 330 Actuarial loss (gain) 1,037 188 Benefits paid (2,131 ) (706 ) Benefit obligation at end of year $ 8,194 $ 7,943 Change in plan assets: Fair value of plan assets at beginning of year $ — $ — Employer contributions 1,308 376 Participant contributions 823 330 Benefits paid (2,131 ) (706 ) Fair value of plan assets at end of year $ — $ — Funded status, end of year: Fair value of plan assets $ — $ — Benefit obligations (8,194 ) (7,943 ) Unfunded status and amount recognized at end of year $ (8,194 ) $ (7,943 ) Amounts recognized in the balance sheet: Current liability $ (1,025 ) $ (674 ) Noncurrent liability (7,169 ) (7,269 ) Amount recognized at end of year $ (8,194 ) $ (7,943 ) Amounts recognized in accumulated other comprehensive loss: Net actuarial gain before taxes $ (2,379 ) $ (3,846 ) Prior service credit before taxes (50 ) (262 ) Amounts recognized in accumulated other comprehensive loss $ (2,429 ) $ (4,108 ) Assumptions used in accounting for the company’s postretirement benefit plans at each of the respective fiscal years ending are as follows: Fiscal 2018 Fiscal 2017 Fiscal 2016 Weighted average assumptions used to determine benefit obligations: Measurement date 12/31/2018 12/31/2017 12/31/2016 Discount rate 4.07 % 3.36 % 3.66 % Health care cost trend rate used to determine benefit obligations: Initial rate 6.50 % 6.00 % 6.50 % Ultimate rate 5.00 % 5.00 % 5.00 % Year trend reaches the ultimate rate 2025 2022 2023 Weighted average assumptions used to determine net periodic cost: Measurement date 1/1/2018 1/1/2017 1/1/2016 Discount rate 3.36 % 3.66 % 3.83 % Health care cost trend rate used to determine net periodic cost: Initial rate 6.00 % 6.50 % 8.00 % Ultimate rate 5.00 % 5.00 % 5.00 % Year trend reaches the ultimate rate 2022 2023 2022 Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects for fiscal years 2018, 2017, and 2016 (amounts in thousands): One-Percentage-Point Decrease One-Percentage-Point Increase For the Year Ended For the Year Ended Fiscal 2018 Fiscal 2017 Fiscal 2016 Fiscal 2018 Fiscal 2017 Fiscal 2016 Effect on total of service and interest cost $ (52 ) $ (47 ) $ (58 ) $ 61 $ 55 $ 67 Effect on postretirement benefit obligation $ (467 ) $ (473 ) $ (427 ) $ 524 $ 533 $ 480 Cash Flows Company contributions to postretirement plans are as follows (amounts in thousands): Year Employer Net Contribution 2016 $ 841 2017 $ 376 2018 $ 1,308 2019 (Expected) $ 1,041 The table above reflects only the company’s share of the benefit cost. Since the company no longer receives reimbursement for Medicare Part D subsidies, the entire $1.0 million expected funding for postretirement benefit plans during 2019 will be required to pay for benefits. Contributions by participants to postretirement benefits were $0.8 million, $0.3 million, and $0.3 million for fiscal years 2018, 2017, and 2016, respectively. Benefit Payments The following are benefits paid by the company during fiscal years 2018, 2017 and 2016 and expected to be paid from fiscal 2019 through fiscal 2028. All benefits are expected to be paid from the company’s assets (amounts in thousands): Postretirement benefits Year Employer gross contribution 2016 $ 841 2017 $ 376 2018 $ 1,308 Estimated Future Payments: 2019 $ 1,041 2020 $ 867 2021 $ 812 2022 $ 732 2023 $ 696 2024 – 2028 $ 3,608 Multiemployer Plans The company contributes to various multiemployer pension plans. Benefits provided under the multiemployer pension plans are generally based on years of service and employee age. Expense under these plans was $1.0 million for fiscal 2018, $2.1 million for fiscal 2017, and $2.2 million for fiscal 2016. The company contributes to several multiemployer defined benefit pension plans under the terms of collective-bargaining agreements that cover various union-represented employees. The risks of participating in these multiemployer plans are different from single-employer plans. Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. If we choose to stop participating in some of these multiemployer plans, we may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. None of the contributions to the pension funds was in excess of 5% or more of the total contributions for plan years 2018, 2017, and 2016. There are no contractually required minimum contributions to the plans as of December 29, 2018. On August 18, 2017, the union participants of the Bakery and Confectionary Union and Industry International Pension Fund (the “MEPP Fund”) at our Lakeland, Florida plant voted to withdraw from the MEPP Fund in the most recent collective bargaining agreement. The withdrawal was effective, and the union participants were eligible to participate in the 401(k) plan, on November 1, 2017. During the third quarter of fiscal 2017, the company recorded a liability of $15.2 million related to the withdrawal from the MEPP Fund. During the first quarter of fiscal 2018, the company recorded an additional liability of $2.3 million for the final settlement amount of the withdrawal liability. The withdrawal liability was computed as the net present value of 20 years of monthly payments derived from the company’s share of unfunded vested benefits. The company began making payments during the first quarter of fiscal 2018. While this is our best estimate of the ultimate cost of the withdrawal from the MEPP Fund, additional withdrawal liability may be incurred in the event of a mass withdrawal, as defined by statute following our complete withdrawal. Transition payments, including related tax payments, were made on November 3, 2017 to, and for the benefit of, union participants as part of the collective bargaining agreement. An additional $3.1 million was recorded for these transition payments. The withdrawal liability charge and the transition payments were recorded in the multi-employer pension plan withdrawal costs line item on our Consolidated Statements of Income and are in the DSD Segment. The liability on December 30, 2017 was recorded in other accrued current liabilities on the Consolidated Balance Sheets. We paid $0.2 million during the first quarter of fiscal 2018 and the balance was paid early in the second quarter of fiscal 2018. The company’s participation in these multiemployer plans for fiscal 2018 is outlined in the table below. The EIN/Pension Plan Number column provides the Employer Identification Number (“EIN”) and the three-digit plan number, if applicable. Unless otherwise noted, the most recent PPA zone status available in 2018 and 2017 is for the plan’s year-end at December 31, 2018 and December 31, 2017, respectively. The zone status is based on information that the company received from the plan and is certified by the plan’s actuary. Among other factors, plans in the red zone are generally less than 65 percent funded, plans in the yellow zone are less than 80 percent funded, and plans in the green zone are at least 80 percent funded. The FIP/RP Status Pending/Implemented column indicates plans for which a financial improvement plan (“FIP”) or a rehabilitation plan (“RP”) is either pending or has been implemented. The last column lists the expiration date(s) of the collective-bargaining agreements to which the plans are subject. Finally, there have been no significant changes that affect the comparability of contributions. In December 2014, the Consolidated and Further Continuing Appropriations Act of 2015 (the “2015 Appropriations Act”) was signed into law and materially amended the PPA funding rules. In general, the PPA funding rules were made more flexible in order to make more manageable the steps necessary for multi-employer plans to become or remain economically viable in the future. While in previous years we have been informed that several of the multi-employer pension plans to which our subsidiaries contribute have been labeled with a “critical” or “endangered” status as defined by the PPA, the changes made by the 2015 Appropriations Act will materially impact, on a going forward basis, these prior funding status assessments. In any event, it is unclear at this time what impact, if any, the 2015 Appropriations Act will have on our future obligations to the multi-employer pension plans in which we participate. Pension Protection Act Contributions (Amounts in Zone Status thousands) Expiration Date of Pension FIP/RP Status 2018 2017 2016 Surcharge Collective Bargaining Pension Fund EIN Plan No. 2018 2017 Pending/Implemented ($) ($) ($) Imposed Agreement IAM National Pension Fund 51-6031295 002 Green Green No 108 139 121 No 4/30/2021 Retail, Wholesale and Department Store International Union and Industry Pension Fund 63-0708442 001 Red Red Yes 159 157 156 No 8/14/2021 Western Conference of Teamsters Pension Trust 91-6145047 001 Green Green No 293 276 233 No 2/4/2022 BC&T International Pension Fund* 52-6118572 001 * * Yes 220 965 1,194 Yes 10/25/2020 * The union employees withdrew from the fund effective November 1, 2017. The collective bargaining agreement is still in effect. 401(k) Retirement Savings Plans The Flowers Foods 401(k) Retirement Savings Plan covers substantially all of the company’s employees who have completed certain service requirements. During fiscal years 2018, 2017, and 2016, the total cost and employer contributions were as follows (amounts in thousands): Contributions by fiscal year Defined contribution plans expense Fiscal 2018 $ 25,523 Fiscal 2017 $ 28,346 Fiscal 2016 $ 27,057 The company acquired Canyon during fiscal 2018 and assumed sponsorship of a 401(k) savings plan. We intend to merge this plan into the Flowers Foods 401(k) Retirement Savings Plan after receipt of final determination letters. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 23. Income Taxes On December 22, 2017, the President enacted tax reform, which was effective for the company in the fourth quarter of 2017. The Act reduced our corporate statutory rate from 35% to 21%, In the fourth quarter ending December 30, 2017, a tax benefit of $48.2 million was recorded as an estimate of the impact of the Act. Due to the different federal income tax rates in effect for fiscal 2017 (35%) and fiscal 2018 (21%), the provisional amount was adjusted in the second quarter of fiscal 2018 to reflect the actual timing differences reported on the 2017 federal tax return. The adjustment resulted in a discrete tax benefit of $5.6 million, a reduction to federal income tax payable of $16.4 million and an increase to federal deferred tax liabilities of $10.8 million. The adjustment primarily relates to pension contributions and bonus depreciation on certain assets placed in service during fiscal 2017. There were no adjustments to the provisional estimate recorded in the current quarter. The company’s provision for income tax expense (benefit) consists of the following for fiscal years 2018, 2017 and 2016 (amounts in thousands): Fiscal 2018 Fiscal 2017 Fiscal 2016 Current Taxes: Federal $ 11,642 $ 53,076 $ 86,235 State 6,702 7,403 13,983 18,344 60,479 100,218 Deferred Taxes: Federal 21,762 (59,385 ) (11,656 ) State (105 ) (1,921 ) (2,801 ) 21,657 (61,306 ) (14,457 ) Income tax expense (benefit) $ 40,001 $ (827 ) $ 85,761 Income tax expense (benefit) differs from the amount computed by applying the applicable U.S. federal income tax rate of 21% for fiscal year 2018, and 35% for fiscal years 2017, and 2016 (amounts in thousands): Fiscal 2018 Fiscal 2017 Fiscal 2016 Tax at U.S. federal income tax rate $ 41,404 $ 52,253 $ 87,338 State income taxes, net of federal income tax benefit 5,213 3,564 7,266 Tax reform impact (5,575 ) (48,160 ) — Section 199 qualifying production activities benefit — (5,422 ) (8,007 ) Net share-based payments (windfalls) shortfalls* 1,639 (1,001 ) — Other (2,680 ) (2,061 ) (836 ) Income tax expense (benefit) $ 40,001 $ (827 ) $ 85,761 * Applied beginning in fiscal 2017 upon adoption of new guidance. In 2018, the most significant differences in the effective rate and the statutory rate are the adjustments resulting from the Act and state income taxes. In 2017 the most significant difference was the revaluation of net deferred liabilities resulting from the Act. Absent the Act in 2017 and in 2016, the most significant differences in the effective rate and the statutory rate are state income taxes offset by the Section 199 qualifying production activities deduction. Deferred tax assets (liabilities) are comprised of the following (amounts in thousands): December 29, 2018 December 30, 2017 Self-insurance $ 5,208 $ 4,972 Compensation and employee benefits 8,718 8,836 Deferred income 8,867 8,705 Loss and credit carryforwards 14,027 13,453 Equity-based compensation 4,646 6,831 Hedging 1,397 2,754 Pension and postretirement benefits 10,764 13,344 Other 9,639 9,657 Deferred tax assets valuation allowance (364 ) (111 ) Deferred tax assets 62,902 68,441 Depreciation (59,294 ) (47,552 ) Intangibles (104,380 ) (101,890 ) Other (1,886 ) (1,975 ) Deferred tax liabilities (165,560 ) (151,417 ) Net deferred tax liability $ (102,658 ) $ (82,976 ) The company has a deferred tax asset of $3.7 million related to a federal net operating loss carryforward which we expect to fully utilize before expiration. Additionally, the company and various subsidiaries have a net deferred tax asset of $6.2 million related to state net operating loss carryforwards, and $4.1 million for credit carryforwards with expiration dates through fiscal 2037. The utilization of a portion of these state carryforwards could be limited in the future; therefore, an insignificant valuation allowance has been recorded. Should the company determine at a later date that certain of these losses which have been reserved for may be utilized, a benefit may be recognized in the Consolidated Statements of Income. Likewise, should the company determine at a later date that certain of these net operating losses for which a deferred tax asset has been recorded may not be utilized, a charge to the Consolidated Statements of Income may be necessary. The gross amount of unrecognized tax benefits was $0.8 million and $1.3 million as of December 29, 2018 and December 30, 2017, respectively. This change is due to the expiration of the statute of limitations on previously unrecognized tax benefits. These amounts are exclusive of interest accrued and are recorded in other long-term liabilities on the Consolidated Balance Sheets. If recognized, the $0.8 million (less $0.2 million related to tax imposed in other jurisdictions) would impact the effective rate. The company accrues interest expense and penalties related to income tax liabilities as a component of income before taxes. No accrual of penalties is reflected on the company’s balance sheet as the company believes the accrual of penalties is not necessary based upon the merits of its income tax positions. The company had an accrued interest balance of approximately $0.1 million and $0.1 million at December 29, 2018 and December 30, 2017, respectively. The company defines the federal jurisdiction as well as various state jurisdictions as “major” jurisdictions. The company is no longer subject to federal examinations for years prior to 2015, and with limited exceptions, for years prior to 2014 in state jurisdictions. The following is a reconciliation of the total amounts of unrecognized tax benefits for fiscal years 2018, 2017 and 2016 (amounts in thousands): Fiscal 2018 Fiscal 2017 Fiscal 2016 Unrecognized tax benefit at beginning of fiscal year $ 1,259 $ 1,754 $ 727 Gross increases — — 1,488 Lapses of statutes of limitations (509 ) (495 ) (461 ) Unrecognized tax benefit at end of fiscal year $ 750 $ 1,259 $ 1,754 At this time, we do not anticipate significant changes to the amount of gross unrecognized tax benefits over the next twelve months. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 29, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 24. Commitments and Contingencies Self-insurance reserves and other commitments and contingencies The company has recorded current liabilities of $29.4 million and $30.1 million related to self-insurance reserves at December 29, 2018 and December 30, 2017, respectively. The reserves include an estimate of expected settlements on pending claims, defense costs and a provision for claims incurred but not reported. These estimates are based on the company’s assessment of potential liability using an analysis of available information with respect to pending claims, historical experience and current cost trends. In the event the company ceases to utilize the independent distributor model or exits a geographic market, the company is contractually required in some situations to purchase the distribution rights from the independent distributor. The company expects to continue operating under this model and has concluded that the possibility of a loss is remote. The company’s facilities are subject to various federal, state and local laws and regulations regarding the discharge of material into the environment and the protection of the environment in other ways. The company is not a party to any material proceedings arising under these regulations. The company believes that compliance with existing environmental laws and regulations will not materially affect the consolidated financial condition, results of operations, cash flows or the competitive position of the company. The company believes it is currently in substantial compliance with all material environmental regulations affecting the company and its properties. In August 2016, the U.S. Department of Labor (the “Department”) notified the company that it was scheduled for a compliance review under the Fair Labor Standards Act. On November 5, 2018, the company was advised by the Department that the compliance review has been closed. Litigation The company and its subsidiaries from time to time are parties to, or targets of, lawsuits, claims, investigations and proceedings, including personal injury, commercial, contract, environmental, antitrust, product liability, health and safety and employment matters, which are being handled and defended in the ordinary course of business. While the company is unable to predict the outcome of these matters, it believes, based upon currently available facts, that it is remote that the ultimate resolution of any such pending matters will have a material adverse effect on its overall financial condition, results of operations or cash flows in the future. However, adverse developments could negatively impact earnings in a particular future fiscal period. At this time, the company is defending 26 complaints filed by IDPs alleging that they were misclassified as independent contractors. Twenty-two of these lawsuits seek class and/or collective action treatment. The remaining 4 cases allege individual claims and do not seek class or collective action treatment, although one of the cases is a California action that also alleges a representative claim under the California Private Attorney General Act. The respective courts have ruled on plaintiffs’ motions for class certification in 13 of the pending cases, each of which is discussed below. Unless otherwise noted, a class was conditionally certified under the FLSA in each of the cases described below, although the company has the ability to petition the court to decertify that class at a later date Case Name Case No. Venue Date Filed Status Rosinbaum et al. v. Flowers Foods, Inc. and Franklin Baking Co., LLC 7:16-cv-00233 U.S. District Court Eastern District of North Carolina 12/1/2015 Neff et al. v. Flowers Foods, Inc., Lepage Bakeries Park Street, LLC, and CK Sales Co., LLC 5:15-cv-00254 U.S. District Court District of Vermont 12/2/2015 Noll v. Flowers Foods, Inc., Lepage Bakeries Park Street, LLC, and CK Sales Co., LLC 1:15-cv-00493 U.S. District Court District of Maine 12/3/2015 On January 15, 2019, the Court denied defendants’ motion to decertify the FLSA class and granted Plaintiff’s motion to certify under Federal Rule of Civil Procedure 23 a state law class of distributors who operated in the state of Maine. Richard et al. v. Flowers Foods, Inc., Flowers Baking Co. of Lafayette, LLC, Flowers Baking Co. of Baton Rouge, LLC, Flowers Baking Co. of Tyler, LLC and Flowers Baking Co. of New Orleans, LLC 6:15-cv-02557 U.S. District Court Western District of Louisiana 10/21/2015 Carr et al. v. Flowers Foods, Inc. and Flowers Baking Co. of Oxford, Inc. 2:15-cv-06391 U.S. District Court Eastern District of Pennsylvania 12/1/2015 Boulange v. Flowers Foods, Inc. and Flowers Baking Co. of Oxford, Inc. 2:16-cv-02581 U.S. District Court Eastern District of Pennsylvania 3/25/2016 This matter has been consolidated with the Carr litigation described immediately above. Medrano v. Flowers Foods, Inc. and Flowers Baking Co. of El Paso, LLC 1:16-cv-00350 U.S. District Court District of New Mexico 4/27/2016 Long v. Flowers Foods, Inc., Flowers Baking Co. of Morristown, LLC, and Flowers Baking Co. of Knoxville, LLC 3:17-cv-00724 U.S. District Court Middle District of Tennessee 4/20/2017 On September 7, 2018, the parties, as part of a global resolution, agreed in principle to settle this and 11 other collective action lawsuits pending against the company for a payment in the amount of $9.0 million, comprised of $5.4 million in settlement funds and $3.6 million in attorneys’ fees. The proposed settlement class consists of approximately 900 members. The settlement also contains certain non-economic terms that are included to strengthen and enhance the independent contractor model, which remains in place. The parties are working to obtain final court approval of the settlement. On February 1, 2019, plaintiffs' counsel filed a consolidated complaint with the United States District Court for the Western District of Tennessee (Green et al. v. Flowers Foods, Inc. et al., No 1:19-cv-01021) for the purpose of obtaining judicial approval of the parties' global settlement. This settlement was recorded as a selling, distribution and administrative expense in our Consolidated Statements of Income during the third quarter of fiscal 2018. Martins v. Flowers Foods, Inc., Flowers Baking Co. of Bradenton, LLC and Flowers Baking Co. of Villa Rica, LLC 8:16-cv-03145 U.S. District Court Middle District of Florida 11/8/2016 Bryant v. Flowers Foods, Inc. and Flowers Baking Co. of Denton, LLC 4:17-cv-00725 U.S. District Court Eastern District of Texas 10/9/2017 On September 7, 2018, the parties agreed in principle to settle this matter as part of the settlement referenced in the Long litigation described above. Green v. Flowers Foods, Inc. and Flowers Baking Co. of Birmingham, LLC 5:17-cv-00784 U.S. District Court Northern District of Alabama 5/11/2017 On September 7, 2018, the parties agreed in principle to settle this matter as part of the settlement referenced in the Long litigation described above. Hall et al. v. Flowers Foods, Inc., Flowers Baking Co. of Gadsden, LLC, and Flowers Baking Co. of Birmingham, LLC 1:17-cv-00932 U.S. District Court Northern District of Alabama 6/5/2017 On September 7, 2018, the parties agreed in principle to settle this matter as part of the settlement referenced in the Long litigation described above. Robbins v. Flowers Foods, Inc. and Flowers Baking Co. of Batesville, LLC 3:17-cv-00138 U.S. District Court Northern District of Mississippi 7/31/2017 On September 7, 2018, the parties agreed in principle to settle this matter as part of the settlement referenced in the Long litigation described above. The company and/or its respective subsidiaries contests the allegations and are vigorously defending all of these lawsuits. Given the stage of the complaints and the claims and issues presented, except for lawsuits disclosed herein that have reached a settlement or agreement in principle, the company cannot reasonably estimate at this time the possible loss or range of loss that may arise from the unresolved lawsuits. As of December 29, 2018, the company has settled, and the appropriate court has approved, the following collective and/or class action lawsuits filed by distributors alleging that such distributors were misclassified as independent contractors. In each of these settlements, in addition to the monetary terms noted below, the settlements also included certain non-economic terms intended to strengthen and enhance the independent contractor model: Case Name Case No. Venue Date Filed Comments Rehberg et al. v. Flowers Foods, Inc. and Flowers Baking Co. of Jamestown, LLC 3:12-cv-00596 U.S. District Court Western District of North Carolina 9/12/2012 On June 30, 2017, the Court dismissed this lawsuit and approved an agreement to settle this matter for $9.0 million, comprised of $5.2 million in settlement funds and $3.8 million in attorneys’ fees. The settlement class consisted of approximately 270 class members. This settlement was recorded as a selling, distribution and administrative expense in our Consolidated Statements of Income during the fourth quarter of fiscal 2016 and was paid in fiscal 2017. Bokanoski et al. v. Lepage Bakeries Park Street, LLC and CK Sales Co., LLC 3:15-cv-00021 U.S. District Court District of Connecticut 1/6/2015 On March 13, 2017, the Court dismissed this lawsuit and approved an agreement to settle this matter, which includes 49 territories, for $1.25 million, including attorneys' fees. This settlement was recorded as a selling, distribution and administrative expense in our Consolidated Statements of Income during the third quarter of our fiscal 2016 and was paid during the first quarter of fiscal 2017. Stewart et al. v. Flowers Foods, Inc. and Flowers Baking Co. of Batesville, LLC 1:15-cv-01162 U.S. District Court Western District of Tennessee 7/2/2015 On April 10, 2017, the Court dismissed this lawsuit and approved an agreement to settle this matter for $250,000, including attorneys’ fees, on behalf of sixteen distributors. This settlement was paid and recorded as a selling, distribution and administrative expense in our Consolidated Statements of Income during the first quarter of fiscal 2017. Coyle v. Flowers Foods, Inc. and Holsum Bakery, Inc. 2:15-cv-01372 U.S. District Court District of Arizona 7/20/2015 On March 23, 2018, the court dismissed this lawsuit and approved an agreement to settle this matter for $4.3 million, comprised of $1.2 million in settlement funds, $2.9 million in attorneys’ fees, and $0.2 million as an incentive for class members who are active distributors not to opt out of certain portions of the new distributor agreement. The settlement consisted of approximately 190 class members. This settlement charge was recorded as a selling, distribution and administrative expense in our Consolidated Statements of Income during the third quarter of fiscal 2017 and was paid during the first quarter of fiscal 2018. McCurley v. Flowers Foods, Inc. and Derst Baking Co., LLC 5:16-cv-00194 U.S. District Court District of South Carolina 1/20/2016 On September 10, 2018, the court approved the parties’ agreement to settle Zapata et al. v. Flowers Foods, Inc. and Flowers Baking Co. of Houston, LLC (the "Zapata litigation") 4:16-cv-00676 U.S. District Court Southern District of Texas 3/14/2016 On September 12, 2018, the court dismissed the Zapata litigation and the Rodriguez litigation (defined below) and approved an agreement to settle both matters for $740,700, including attorneys’ fees, on behalf of 43 distributors. This settlement was paid and recorded as a selling, distribution and administrative expense in our Consolidated Statements of Income during the third quarter of fiscal 2018. Rodriguez et al. v. Flowers Foods, Inc. and Flowers Baking Co. of Houston, LLC (the "Rodriguez litigation") 4:16-cv-00245 U.S. District Court Southern District of Texas 1/28/2016 See the Zapata litigation discussion immediately above. Schucker et al. v. Flowers Foods, Inc., Lepage Bakeries Park St., LLC, and C.K. Sales Co., LLC 1:16-cv-03439 U.S. District Court Southern District of New York 5/9/2016 On September 5, 2018, the court dismissed this lawsuit and approved an agreement to settle this matter for approximately $1.3 million, comprised of $0.4 million in settlement funds, $0.9 million in attorneys’ fees, and a collective $0.1 million for service awards and incentives for class members who are active distributors not to opt out of certain portions of the new distributor agreement. The settlement consisted of 27 class members. This settlement charge was recorded as a selling, distribution and administrative expense in our Consolidated Statements of Income during the first quarter of fiscal 2018. This settlement was paid on November 19, 2018. On August 12, 2016, a class action complaint was filed in the U.S. District Court for the Southern District of New York by Chris B. Hendley (the “Hendley complaint”) against the company and certain senior members of management (collectively, the “defendants”). On August 17, 2016, another class action complaint was filed in the U.S. District Court for the Southern District of New York by Scott Dovell, II (the “Dovell complaint” and together with the Hendley complaint, the “complaints”) against the defendants. Plaintiffs in the complaints are securities holders that acquired company securities between February 7, 2013 and August 10, 2016. The complaints generally allege that the defendants made materially false and/or misleading statements and/or failed to disclose that (1) the company’s labor practices were not in compliance with applicable federal laws and regulations; (2) such non-compliance exposed the company to legal liability and/or negative regulatory action; and (3) as a result, the defendants’ statements about the company’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis. The counts of the complaints are asserted against the defendants pursuant to Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 under the Exchange Act. The complaints seek (1) class certification under the Federal Rules of Civil Procedure, (2) compensatory damages in favor of the plaintiffs and all other class members against the defendants, jointly and severally, for all damages sustained as a result of wrongdoing, in an amount to be proven at trial, including interest, and (3) awarding plaintiffs and the class their reasonable costs and expenses incurred in the actions, including counsel and expert fees. On October 21, 2016, the U.S. District Court for the Southern District of New York consolidated the complaints into one action captioned “In re Flowers Foods, Inc. Securities Litigation” (the “consolidated securities action”), appointed Walter Matthews as lead plaintiff (“lead plaintiff”), and appointed Glancy Prongay & Murray LLP and Johnson & Weaver, LLP as co-lead counsel for the putative class. On November 21, 2016, the court granted defendants’ and lead plaintiff’s joint motion to transfer the consolidated securities action to the U.S. District Court for the Middle District of Georgia. Lead plaintiff filed his Consolidated Class Action Complaint on January 12, 2017, raising the same counts and general allegations and seeking the same relief as the Dovell and Hendley complaints. On March 13, 2017, the defendants filed a motion to dismiss the lawsuit which was granted in part and denied in part on March 23, 2018. The court dismissed certain allegedly false or misleading statements as nonactionable under federal securities laws, and will allow others to proceed to fact discovery. On July 23, 2018, lead plaintiff filed his motion for class certification. The defendants filed their memorandum of law in opposition to class certification on October 5, 2018. The court has scheduled a hearing on the class certification motion for February 28, 2019. On June 8, 2018, a verified shareholder derivative complaint was filed in the U.S. District Court for the Middle District of Georgia by William D. Wrigley, derivatively on behalf of the company (the “Wrigley complaint”), against certain current and former directors and officers of the company. On June 14, 2018, a related shareholder derivative complaint was filed in the U.S. District Court for the Middle District of Georgia by Stephen Goldberger, derivatively on behalf of the company (the “Goldberger complaint” and together with the Wrigley complaint, the “federal derivative complaints”), against the same current and former directors and officers of the company. The federal derivative complaints allege, among other things, breaches of fiduciary duties and violations of federal securities laws relating to the company’s labor practices, and seek unspecified damages, disgorgement, and other relief. On June 27, 2018, these derivative actions were consolidated and stayed until the earlier of (1) an order from the court on any summary judgment motions that may be filed in the consolidated securities action, or (2) notification that there has been a settlement reached in the consolidated securities action, or until otherwise agreed to by the parties. On June 21, 2018, two verified shareholder derivative complaints were filed in The Superior Court of Thomas County, State of Georgia, by Margaret Cicchini Family Trust and Frank Garnier, separately, derivatively on behalf of the company (together the “state derivative complaints”), against certain current and former directors and officers of the company. The state derivative complaints allege, among other things, breaches of fiduciary duties relating to the company’s labor practices, and seek unspecified damages, disgorgement, and other relief. On July 12, 2018, these derivative actions were consolidated and stayed until the earlier of (1) an order from the court on any summary judgment motions that may be filed in the consolidated securities action, or (2) notification that there has been a settlement reached in the consolidated securities action, or until otherwise agreed to by the parties. The company and/or its respective subsidiaries are vigorously defending these lawsuits. Given the stage of the complaints and the claims and issues presented, the company cannot reasonably estimate at this time the possible loss or range of loss, if any, that may arise from the unresolved lawsuits. See Note 15, Debt, Lease and Other Commitments |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 29, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 25. Segment Reporting The company’s DSD Segment primarily produces fresh packaged breads, buns, rolls, tortillas, and snack cakes and the Warehouse Segment produces fresh and frozen bread and rolls and snack cakes. The company purchased Canyon on December 14, 2018. See Note 11, Acquisition The company evaluates each segment’s performance based on income or loss before interest and income taxes, excluding unallocated expenses and charges which the company’s management deems to be an overall corporate cost or a cost not reflective of the segments’ core operating businesses. Information regarding the operations of these segments is as follows for fiscal years 2018, 2017, and 2016 (amounts in thousands): Fiscal 2018 Fiscal 2017 Fiscal 2016 Sales: DSD Segment $ 3,423,935 $ 3,383,564 $ 3,347,616 Warehouse Segment 787,431 767,844 787,233 Eliminations: Sales from Warehouse Segment to DSD Segment (175,626 ) (165,674 ) (144,525 ) Sales from DSD Segment to Warehouse Segment (83,888 ) (65,001 ) (63,439 ) $ 3,951,852 $ 3,920,733 $ 3,926,885 Gain on divestiture: Warehouse Segment $ — $ 28,875 $ — $ — $ 28,875 $ — Multi-employer pension plan withdrawal costs: DSD Segment $ 2,322 $ 18,268 $ — $ 2,322 $ 18,268 $ — Loss on inferior ingredients: DSD Segment $ 1,655 $ — $ — Warehouse Segment 1,557 — — $ 3,212 $ — $ — Restructuring and related impairment charges: DSD Segment $ 8,121 $ 80,026 $ — Warehouse Segment 1,394 20,122 — Unallocated corporate costs 252 3,982 — $ 9,767 $ 104,130 $ — Impairment of assets: DSD Segment $ 2,483 $ — $ 24,877 Unallocated corporate costs 3,516 — — $ 5,999 $ — $ 24,877 Depreciation and amortization: DSD Segment $ 122,300 $ 126,485 $ 120,009 Warehouse Segment 21,524 20,642 20,138 Unallocated corporate costs(1) 300 (408 ) 722 $ 144,124 $ 146,719 $ 140,869 Income from operations: DSD Segment $ 239,510 $ 202,239 $ 259,982 Warehouse Segment 37,646 54,738 58,465 Unallocated corporate costs(2) (64,812 ) (95,974 ) (53,549 ) $ 212,344 $ 161,003 $ 264,898 Interest expense $ 35,686 $ 36,557 $ 34,905 Interest income $ (27,755 ) $ (22,938 ) $ (20,552 ) Pension plan settlement loss $ 7,781 $ 4,649 $ 6,646 Other components of net periodic pension and postretirement benefits credit $ (529 ) $ (6,558 ) $ (5,638 ) Income before income taxes $ 197,161 $ 149,293 $ 249,537 Capital expenditures: DSD Segment $ 82,789 $ 64,317 $ 61,669 Warehouse Segment 14,929 6,933 16,792 Other(3) 1,704 3,982 23,266 $ 99,422 $ 75,232 $ 101,727 December 29, 2018 December 30, 2017 Assets: DSD Segment $ 2,419,019 $ 2,270,179 Warehouse Segment 353,220 296,157 Other (3) 73,298 93,388 $ 2,845,537 $ 2,659,724 (1) Represents costs allocated to the company’s corporate head office. (2) Represents costs allocated to the company’s corporate head office and pension settlement loss. (3) Represents the company’s corporate head office assets including primarily cash and cash equivalents. |
Unaudited Quarterly Financial I
Unaudited Quarterly Financial Information | 12 Months Ended |
Dec. 29, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Information | Note 26. Unaudited Quarterly Financial Information Results of operations for each of the four quarters in the respective fiscal years are as follows. Each quarter represents a period of twelve weeks, except the first quarter, which includes sixteen weeks (amounts in thousands, except per share data): First Quarter** Second Quarter** Third Quarter** Fourth Quarter Sales 2018 $ 1,206,453 $ 941,283 $ 923,449 $ 880,667 2017 $ 1,187,649 $ 926,639 $ 932,822 $ 873,623 Materials, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately)* 2018 $ 625,122 $ 488,871 $ 485,680 $ 467,155 2017 $ 608,068 $ 468,246 $ 476,264 $ 456,895 Net income (loss) 2018 $ 51,247 $ 45,442 $ 39,630 $ 20,841 2017 $ 60,418 $ 44,740 $ (33,571 ) $ 78,533 Basic net income (loss) per share 2018 $ 0.24 $ 0.22 $ 0.19 $ 0.10 2017 $ 0.29 $ 0.21 $ (0.16 ) $ 0.37 Diluted net income (loss) per share 2018 $ 0.24 $ 0.21 $ 0.19 $ 0.10 2017 $ 0.29 $ 0.21 $ (0.16 ) $ 0.37 * The company does not report gross margin. This line item presents our material, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately) under an alternative presentation. ** As disclosed in Note 4, Financial Statement Revisions The table below presents financial results that impact comparability, by quarter, for fiscal 2018 (amounts in thousands): Items presented separately on the Consolidated Statements of Income First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal 2018 Footnote Loss (recovery) on inferior ingredients $ — $ 3,884 $ (1,891 ) $ 1,219 $ 3,212 Note 5 Restructuring and related impairment charges $ 1,259 $ 801 $ 497 $ 7,210 $ 9,767 Note 6 Multi-employer pension plan withdrawal costs $ 2,322 $ — $ — $ — $ 2,322 Note 22 Pension plan settlement loss $ 4,668 $ 1,035 $ 930 $ 1,148 $ 7,781 Note 22 Impairment of assets $ 2,483 $ — $ — $ 3,516 $ 5,999 Note 2,13 The table below presents financial results that impact comparability, by quarter, for fiscal 2017 (amounts in thousands): Items presented separately on the Consolidated Statements of Income First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal 2017 Footnote Gain on divestiture $ (28,875 ) $ — $ — $ — $ (28,875 ) Note 7 Restructuring and related impairment charges $ — $ — $ 100,549 $ 3,581 $ 104,130 Note 6 Multi-employer pension plan withdrawal costs $ — $ — $ 18,268 $ — $ 18,268 Note 22 Pension plan settlement loss $ — $ — $ 3,030 $ 1,619 $ 4,649 Note 22 Income tax benefit resulting from tax reform $ — $ — $ — $ (48,160 ) $ (48,160 ) Note 23 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 29, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 27. Subsequent Events The company has evaluated subsequent events since December 29, 2018, the date of these financial statements. We believe there were no material events or transactions discovered during this evaluation that requires recognition or disclosure in the financial statements other than the items discussed below. Dividend. On February 15, 2019, the Board of Directors declared a dividend of $0.18 per share on the company’s common stock to be paid on March 15, 2019 to shareholders of record on March 1, 2019. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation . The Consolidated Financial Statements include the accounts of the company and its wholly-owned subsidiaries. Intercompany transactions and balances are eliminated in consolidation. |
Use of Estimates | Use of Estimates . The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Fiscal Year End | Fiscal Year End . The company operates on a 52-53 week fiscal year ending the Saturday nearest December 31. Fiscal 2018, Fiscal 2017, and Fiscal 2016 consisted of 52 weeks. Fiscal 2019 will consist of 52 weeks. |
Revenue Recognition | Revenue Recognition . Revenue is recognized when obligations under the terms of a contract with our customers are satisfied. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. The company records both direct and estimated reductions to gross revenue for customer programs and incentive offerings at the time the incentive is offered or at the time of revenue recognition for the underlying transaction that results in progress by the customer towards earning the incentive. These allowances include price promotion discounts, coupons, customer rebates, cooperative advertising, and product returns. Consideration payable to a customer is recognized at the time control transfers and is a reduction to revenue. The recognition of costs for promotion programs involves the use of judgment related to performance and redemption estimates. Estimates are made based on historical experience and other factors. Price promotion discount expense is recorded as a reduction to gross sales when the discounted product is sold to the customer. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in our selling, distribution, and administration expenses line item on the Consolidated Statements of Income. The company’s production facilities deliver products to independent distributor partners (“IDP” or “IDPs”), who sell and deliver those products to outlets of retail accounts that are within the IDPs’ defined geographic territory. The IDPs sell products using either scan-based trading (“SBT”) technology, authorized charge tickets, or cash sales. SBT technology allows the retailer to take ownership of our products when the consumer purchases the products rather than at the time they are delivered to the retailer. Control of the inventory does not transfer upon delivery to the retailer because the company controls the risks and rights until the product is scanned at the reseller’s register. Each of the company’s products is considered distinct because the resellers expect each item to be a performance obligation. The company’s performance obligations are satisfied at the point in time when the end consumer purchases the product because each product is considered a separate performance obligation. Consequently, revenue is recognized at a point in time for each scanned item. The company has concluded that we are the principal. In fiscal years 2018, 2017, and 2016, the company recorded $1.7 billion, $1.4 billion, and $1.3 billion, respectively, in sales through SBT. SBT is utilized primarily in certain national and regional retail accounts (“SBT Outlet”). Generally, revenue is not recognized by the company upon delivery of our products by the company to the IDP or upon delivery of our products by the IDP to a SBT Outlet, but when our products are purchased by the end consumer. Product inventory in the SBT Outlet is reflected as inventory on the Consolidated Balance Sheets. The IDP performs a physical inventory of products at each SBT Outlet weekly and reports the results to the company. The inventory data submitted by the IDP for each SBT Outlet is compared with the product delivery data. Product delivered to a SBT Outlet that is not recorded in the product delivery data has been purchased by the consumer/customer of the SBT Outlet and is recorded as sales revenue by the company. Non-SBT sales are classified as either authorized charged sales or cash sales. The company provides marketing support to the IDP for authorized charged sales, but does not provide marketing support to the IDP for cash sales. Marketing support includes providing a dedicated account representative, resolving complaints, and accepting responsibility for product quality which collectively define how to manage the relationship. Revenue is recognized at a point in time for non-SBT sales. The company retains inventory risk, establishes negotiated special pricing, and fulfills the contractual obligations for authorized charged sales. The company is the principal, the IDP is the agent, and the reseller is the customer. Revenue is recognized for authorized charge sales when the product is delivered to the customer because the company has satisfied its performance obligations. Cash sales occur when the IDP is the end customer. The IDP maintains accounts receivable, inventory and fulfillment risk for cash sales. The IDP also controls pricing for the resale of cash sale products. The company is the principal and the IDP is the customer, and an agent relationship does not exist. The discount paid to the IDP for cash sales is recorded as a reduction to revenue. Revenue is recognized for cash sales when the company’s products are delivered to the IDP because the company has satisfied its performance obligations. Sales in the Warehouse Segment are under contracts and include a formal ordering system. Orders are placed primarily using purchase orders (“PO”) or electronic data interchange information. Each PO, together with the applicable master supply agreement, is determined to be a separate contract. Product is delivered via contract carriers engaged by either the company or the customer with shipping terms provided in the PO. Each unit sold, for all product categories, is a separate performance obligation. Each unit is considered distinct because the customer can benefit from each unit by selling each one separately to the end consumer. Additionally, each unit is separately identifiable in the PO. Products are delivered either freight-on-board (“FOB”) shipping or destination. The company’s right to payment is at the time our products are obtained from our warehouse for FOB shipping deliveries. The right to payment for FOB destination deliveries occurs after the products are delivered to the customer. Revenue is recognized at a point in time when control transfers. The company pays commissions to brokers who obtain contracts with customers. Commissions are paid on the total value of the contract, which is determined at contract inception and is based on expected future activity. Broker commissions will not extend beyond a one-year term because each product is considered a separate order in the PO. The company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the company otherwise would have recognized is one year or less. These costs are included in our selling, distribution, and administrative expenses line item on the Consolidated Statements of Income. The company disaggregates revenue by sales channel for each reportable segment. Our sales channels are branded retail, store branded retail, and non-retail and other. The non-retail and other channel includes foodservice, restaurants, institutional, vending, thrift stores, and contract manufacturing. The company does not disaggregate revenue by geographic region, customer type, or contract type. All revenues are recognized at a point in time. Sales by sales channel category in each reportable segment are as follows for fiscal years 2018, 2017, and 2016 (amounts in thousands): |
Cash and Cash Equivalents | Cash and Cash Equivalents . The company considers deposits in banks, certificates of deposits, and short-term investments with original maturities of three months or less to be cash and cash equivalents. |
Accounts and Notes Receivable | Accounts and Notes Receivable . Accounts and notes receivable consists of trade receivables, current portions of distributor notes receivable, and miscellaneous receivables. The company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments for trade receivables, IDP notes receivable, and miscellaneous receivables. Bad debts are charged to this reserve after all attempts to collect the balance are exhausted. If the financial condition of the company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. In determining the past due or delinquent status of a customer, the aged trial balance is reviewed on a weekly basis by sales management and generally any accounts older than seven weeks are considered delinquent. Activity in the allowance for doubtful accounts is as follows (amounts in thousands): Beginning Balance Charged to Expense Write-Offs and Other Ending Balance Fiscal 2018 $ 3,154 $ 6,963 $ 4,366 $ 5,751 Fiscal 2017 $ 1,703 $ 4,215 $ 2,764 $ 3,154 Fiscal 2016 $ 1,341 $ 3,365 $ 3,003 $ 1,703 The amounts charged to expense for bad debts in the table above are reported as adjustments to reconcile net income to net cash provided by operating activities in the Consolidated Statements of Cash Flows. The write-offs and other column represents the amounts that are used to reduce the gross accounts and notes receivable at the time the balance due from the customer is written-off. Walmart/Sam’s Club is our only customer with a balance greater than 10% of outstanding trade receivables. Their percentage of trade receivables was 17.8% and 17.5%, on a consolidated basis, as of December 29, 2018 and December 30, 2017, respectively. No other customer accounted for greater than 10% of the company’s outstanding receivables. |
Concentration of Credit Risk | Concentration of Credit Risk . The company performs periodic credit evaluations and grants credit to customers, who are primarily in the grocery and foodservice markets, and generally does not require collateral. Our top 10 customers in fiscal years 2018, 2017 and 2016 accounted for 50.3%, 48.5% and 46.8% of sales, respectively Percent of Sales DSD Segment Warehouse Segment Total Fiscal 2018 17.9 % 2.4 % 20.3 % Fiscal 2017 17.6 % 2.4 % 20.0 % Fiscal 2016 17.0 % 2.6 % 19.6 % Walmart/Sam’s Club is the only customer to account for greater than 10% of the company’s sales. |
Inventories | Inventories . Inventories at December 29, 2018 and December 30, 2017 are valued at net realizable value. Costs for raw materials and packaging are recorded at moving average cost. Finished goods inventories are valued at average costs. The company will write down inventory to net realizable value for estimated unmarketable inventory equal to the difference between the cost of the inventory and the estimated net realizable value for situations when the inventory is impaired by damage, deterioration, or obsolescence. Activity in the inventory reserve allowance is as follows (amounts in thousands): Beginning Balance Charged to Expense Write-Offs and Other Ending Balance Fiscal 2018 $ 673 $ 740 $ 1,270 $ 143 Fiscal 2017 $ 1,090 $ 1,684 $ 2,101 $ 673 Fiscal 2016 $ 238 $ 1,324 $ 472 $ 1,090 The amounts charged to expense for inventory loss in the table above are reported as adjustments to reconcile net income to net cash provided by operating activities in the Consolidated Statements of Cash Flows. The write-offs and other column represents the amounts that are used to reduce gross inventories. |
Shipping Costs | Shipping Costs . Shipping costs are included in the selling, distribution and administrative line item of the Consolidated Statements of Income. For fiscal years 2018, 2017, and 2016, shipping costs were $975.1 million, $888.1 million, and $855.1 million, respectively, including the costs paid to IDPs. |
Spare Parts and Supplies | Spare Parts and Supplies . The company maintains inventories of spare parts and supplies, which are used for repairs and maintenance of its machinery and equipment. These spare parts and supplies allow the company to react quickly in the event of a mechanical breakdown. These parts are valued using the moving average method and are expensed as the part is used. Periodic physical inventories of the parts are performed, and the value of the parts is adjusted for any obsolescence or difference from the physical inventory count. |
Assets Held for Sale | Assets Held for Sale . Assets to be sold are classified as held for sale in the period all the required criteria are met. The company generally has three types of assets classified as held for sale. These include distribution rights, plants and depots/warehouses, and other equipment. See Note 9, , for these amounts by classification. Though under no obligation to do so, the company repurchases distribution rights from and sells distribution rights to IDPs from time to time. At the time the company purchases distribution rights from an IDP, the fair value purchase price of the distribution right is recorded as “Assets Held for Sale”. Upon the sale of the distribution rights to a new IDP, the new distributor franchisee/owner may choose how he/she desires to finance the purchase of the business. If the new distributor chooses to use optional financing via a company-related entity, a note receivable of up to ten years is recorded for the financed amount with a corresponding credit to assets held for sale to relieve the carrying amount of the territory. Any difference between the selling price of the business and the distribution rights’ carrying value, if any, is recorded as a gain or a loss in selling, distribution and administrative expenses because the company considers the IDP activity a cost of distribution. This gain is recognized over the term of the outstanding notes receivable as payments are received from the IDP. In instances where a distribution right is sold for less than its carrying value, a loss is recorded at the date of sale and any impairment of a distribution right held for sale is recorded at such time when the impairment occurs. The deferred gains were $35.7 million and $34.7 million at December 29, 2018 and December 30, 2017, respectively, and are recorded in other short and long-term liabilities on the Consolidated Balance Sheet. The company recorded net gains of $4.4 million during fiscal 2018, $3.3 million during fiscal 2017, and $3.1 million during fiscal 2016 related to the sale of distribution rights as a component of selling, distribution and administrative expenses. |
Property, Plant and Equipment and Depreciation | Property, Plant and Equipment and Depreciation . Property, plant and equipment is stated at cost. Depreciation expense is computed using the straight-line method over the estimated useful lives of the depreciable assets. Certain equipment held under capital leases of $35.4 million and $42.8 million at December 29, 2018 and December 30, 2017, respectively, is classified as property, plant and equipment and the related obligations are recorded as liabilities. Depreciation of assets held under capital leases is included in depreciation and amortization expense. Total accumulated depreciation for assets held under capital leases was $13.4 million and $15.7 million at December 29, 2018 and December 30, 2017, respectively. The table below presents the range of estimated useful lives by property, plant and equipment class. Useful life term (years) Asset Class Low High Buildings 10 40 Machinery and equipment 3 25 Furniture, fixtures and transportation equipment 3 15 Property under capital leases and leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the leased property. Depreciation expense for fiscal years 2018, 2017, and 2016 was as follows (amounts in thousands): Depreciation expense Fiscal 2018 $ 118,232 Fiscal 2017 $ 119,445 Fiscal 2016 $ 116,367 The company had no capitalized interest during fiscal 2018, 2017, and 2016. The cost of maintenance and repairs is charged to expense as incurred. Upon disposal or retirement, the cost and accumulated depreciation of assets are eliminated from the respective accounts. Any gain or loss is reflected in the company’s income from operations and is included in adjustments to reconcile net income to net cash provided by operating activities in the Consolidated Statements of Cash Flows. |
Segments | Segments . The company’s segments are currently separated primarily by the different delivery methods each segment uses for their respective product deliveries. The DSD Segment’s products are delivered fresh to customers through a network of IDPs who are incentivized to grow sales and to build equity in their distributorships. The Warehouse Segment ships fresh and frozen products to customers’ warehouses nationwide. Our bakeries fall into either the DSD Segment or Warehouse Segment depending on the primary method of delivery used to sell that bakery’s products. The bakeries within each segment produce products that are sold externally and internally. Internal sales are to bakeries within the producing bakery’s segment or to the other segment. Sales between bakeries are transferred at standard cost. |
Impairment of Long-Lived Held and Used Assets | Impairment of Long-Lived Held and Used Assets . The company determines whether there has been an impairment of long-lived held and used assets when indicators of potential impairment are present. We consider historical performance and future estimated results in our evaluation of impairment. If facts and circumstances indicate that the cost of any long-lived held and used assets may be impaired, an evaluation of recoverability would be performed. If an evaluation is required, the estimated future gross, undiscounted cash flows associated with the asset would be compared to the asset’s carrying amount to determine if a write-down to market value is required. In fiscal 2018, we recorded asset impairment charges for long-lived held and used assets of $7.3 million. Total impairments, and the line item to which each item is recorded in our Consolidated Statements of Income, are presented below (amounts in thousands): Impairment of assets line item Unallocated corporate costs DSD Segment Warehouse Segment Total Property, plant and equipment $ 3,516 $ — $ — $ 3,516 Impairment of assets $ 3,516 $ — $ — $ 3,516 Restructuring and related impairment charges line item Unallocated corporate costs DSD Segment Warehouse Segment Total Plant closings $ — $ 2,952 $ 204 $ 3,156 Line closings — — 661 661 Impairment of assets $ — $ 2,952 $ 865 $ 3,817 A property, plant and equipment impairment was recognized in the fourth quarter of fiscal 2018 when a construction in process asset was not ultimately placed into service. On November 6, 2018, the company announced the closure of a bakery in Brattleboro, Vermont. The bakery was closed during the fourth quarter of fiscal 2018 and consisted of a $2.5 million charge to the DSD Segment for property, plant, and equipment. An additional $0.5 million impairment charge to the DSD Segment was related to an idle plant that has been classified as held for sale. The remaining $0.2 million of plant closings relates to final charges for the Winston-Salem plant, discussed below, in the Warehouse Segment. During the fourth quarter of fiscal 2018, the company recognized $0.7 million for closing various lines at certain Warehouse Segment plants as a result of the supply chain analysis. In fiscal 2017, we recorded asset impairment charges of $3.4 million for the closure of a Warehouse Segment snack cake plant in Winston-Salem, North Carolina. The closure was related to Project Centennial and is recorded in the restructuring and related impairment charges line item in our Consolidated Statements of Income. See Note 6, Restructuring Activities In fiscal 2016, we recorded asset impairment charges totaling $9.9 million at the time certain idle assets were reclassified as held for sale. See Note 9, Assets Held for Sale |
Impairment of Other Intangible Assets | Impairment of Other Intangible Assets . The company accounts for other intangible assets recognized in a purchase business combination at fair value. These intangible assets can be either finite or indefinite-lived depending on the facts and circumstances at acquisition. Finite-lived intangible assets are reviewed for impairment when facts and circumstances indicate that the cost of any finite-lived intangible asset may be impaired. This recoverability test is based on an undiscounted cash flows expected to result from the company’s use and eventual disposition of the asset. If these cash flows are sufficient to recover the carrying value over the useful life there is no impairment. Amortization of finite-lived intangible assets occurs over their estimated useful lives. The amortization periods, at origination, range from two years to forty years for these assets. The attribution methods we primarily use are the sum-of-the-year digits for customer relationships and straight-line for other intangible assets. These finite-lived intangible assets generally include trademarks, customer relationships, non-compete agreements, distributor relationships, and supply agreements. Identifiable intangible assets that are determined to have an indefinite useful economic life are not amortized. Indefinite-lived intangible assets are tested for impairment, at least annually, using a one-step fair value based approach or when certain indicators of potential impairment are present. We have elected not to perform the qualitative approach. We also reassess the indefinite-lived classification to determine if it is appropriate to reclassify these assets as finite-lived assets that will require amortization. We consider historical performance and future estimated results in our evaluation of impairment. If facts and circumstances indicate that the cost of any indefinite-lived intangible assets may be impaired, an evaluation of the fair value of the asset is compared to its carrying amount. If the carrying amount exceeds the fair value, an impairment charge is recorded for the difference. We use the multi-period excess earnings and relief from royalty methods to value these indefinite-lived intangible assets. Fair value is estimated using the future gross, discounted cash flows associated with the asset using the following four material assumptions: (a) discount rate; (b) long-term sales growth rates; (c) forecasted operating margins (not applicable to the relief from royalty method); and (d) market multiples. The method used for impairment testing purposes is consistent with the valuation method employed at acquisition of the intangible asset. These indefinite-lived intangible assets are trademarks acquired in a purchase business combination. During fiscal 2017, the company recorded impairment charges of $66.2 million for certain trademarks impacted by the brand rationalization study that was performed in conjunction with Project Centennial. See Note 6, Restructuring Activities During fiscal 2016, the company recorded an impairment charge of $15.0 million on certain trademarks the company no longer intends to grow nationally. These brands will continue to be produced and sold in their respective markets. This impairment was recorded in the impairment of assets line item of our Consolidated Statements of Income. The company evaluates useful lives for finite-lived intangible assets to determine if facts or circumstances arise that may impact the estimates of useful lives assigned and the remaining amortization duration. Indefinite-lived intangible assets that are determined to have a finite useful life are tested for impairment as an indefinite-lived intangible asset prior to commencing amortization. We determined the impaired assets should be reclassified from indefinite-lived to finite-lived with an attribution period covering our estimate of the assets’ useful life. These intangible assets were assigned a useful life ranging from thirty years to forty years. Future adverse changes in market conditions or poor operating results of underlying intangible assets could result in losses or an inability to recover the carrying value of the intangible assets that may not be reflected in the assets’ current carrying values, thereby possibly requiring an impairment charge in the future. See Note 10, Goodwill and Other Intangible Assets |
Goodwill | Goodwill . The company accounts for goodwill in a purchase business combination as the excess of the cost over the fair value of net assets acquired. Goodwill is assigned to specific reporting units for purposes of the annual impairment test. The company operates in two segments. Our bakeries are the components within our operating segments. The bakeries are aggregated into the two operating segments because of reciprocal baking arrangements for plants within each operating segment (i.e., these are aggregated because of similar economic characteristics). Our reportable segments (DSD Segment and Warehouse Segment) are the same as our operating segments. The reporting unit was determined by the acquisition’s primary delivery method. The company tests goodwill for impairment on an annual basis (or an interim basis if a triggering event occurs that indicates the fair value of a reporting unit may be below its carrying value) using a two-step method. This analysis is performed for both of our segments. We have elected not to perform the qualitative approach. The company conducts this review during the fourth quarter of each fiscal year absent any triggering events. We use the following four material assumptions in our fair value analysis: (a) weighted average cost of capital; (b) long-term sales growth rates; (c) forecasted operating margins; and (d) market multiples. No impairment resulted from the annual review performed in fiscal years 2018, 2017, or 2016. See Note 10, , for additional disclosure. |
Derivative Financial Instruments | Derivative Financial Instruments . The disclosure requirements for derivatives and hedging provide investors with an enhanced understanding of: (a) how and why an entity uses derivative instruments and related hedged items, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the company’s objectives and strategies for using derivative instruments and related hedged items, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments and related hedged items, and disclosures about credit-risk-related contingent features in derivative instruments and related hedged items. The company’s objectives in using commodity derivatives are to add stability to materials, supplies, labor, and other production costs and to manage its exposure to certain commodity price movements. To accomplish this objective, the company uses commodity futures as part of its commodity risk management strategy. The company’s commodity risk management programs include hedging price risk for wheat, soybean oil, corn, and natural gas primarily using futures contacts. Commodity futures designated as cash flow hedges involve fixing the price on a fixed volume of a commodity on a specified date. The commodity futures are given up to third parties near maturity to price the physical goods (e.g. flour, sweetener, corn, etc.) required as part of the company’s production. As required, the company records all derivatives on the Consolidated Balance Sheets at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedged item with the earnings effect of the hedged forecasted transactions in a cash flow hedge. The company may enter into derivative contracts that are intended to economically hedge certain of its risks, even though hedge accounting does not apply or the company elects not to apply hedge accounting. For derivatives designated and that qualify as cash flow hedges of commodity price risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income (loss) (“AOCI”) and subsequently reclassified in the period during which the hedged transaction affects earnings within the same income statement line item as the earnings effect of the hedged transaction. All our commodity derivatives at December 29, 2018 qualified for hedge accounting. Before the company adopted new guidance beginning with fiscal 2018, during fiscal years 2017, and 2016 there was no material income or expense recorded due to ineffectiveness in current earnings due to changes in the fair value of our commodity hedges. The company recognized $0.1 million of ineffectiveness in the selling, distribution and administrative expenses line item of our Consolidated Statements of Income during fiscal year 2016 at the settlement of a treasury lock for an interest rate hedge. See Note 12, Derivative Financial Instruments The company routinely transfers amounts from AOCI to earnings as transactions for which cash flow hedges were held occur and impact earnings. Significant situations which do not routinely occur that could cause transfers from AOCI to earnings are the cancellation of a forecasted transaction for which a derivative was held as a hedge or a significant and material reduction in volume used of a hedged ingredient such that the company is overhedged and must discontinue hedge accounting. During fiscal 2018, 2017, and 2016 there were no discontinued hedge positions. The impact to earnings is included in our materials, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately) line item. Changes in the fair value of the asset or liability are recorded as either a current or long-term asset or liability depending on the underlying fair value. Amounts reclassified to earnings for the commodity cash flow hedges are presented as an adjustment to reconcile net income to net cash provided by operating activities on the Consolidated Statements of Cash Flows. See Note 12, Derivative Financial Instruments |
Treasury Stock | Treasury Stock . The company records acquisitions of its common stock for treasury at cost. Differences between the proceeds for reissuances of treasury stock and average cost are credited or charged to capital in excess of par value to the extent of prior credits and thereafter to retained earnings. See Note 18, , for additional disclosure. |
Advertising and Marketing Costs | Advertising and Marketing Costs . Advertising and marketing costs are expensed the first time the advertising takes place. Advertising and marketing costs were $40.5 million, $33.8 million, and $33.9 million for fiscal years 2018, 2017, and 2016, respectively. Advertising and marketing costs are recorded in the selling, distribution and administrative expense line item in our Consolidated Statements of Income. |
Stock-Based Compensation | Stock-Based Compensation . Stock-based compensation expense for all share-based payment awards granted is determined based on the grant date fair value. The company recognizes compensation costs only for those shares expected to vest on a straight-line basis over the requisite service period of the award, which is generally the vesting term of the share-based payment award. The shares issued for exercises and at vesting of the awards are issued from treasury stock. Forfeitures are recognized as they occur. See Note 19, , for additional disclosure. Stock-based compensation expense is primarily included in selling, distribution and administrative expense in the Consolidated Statements of Income. |
Software Development Costs | Software Development Costs . The company expenses internal and external software development costs incurred in the preliminary project stage, and, thereafter, capitalizes costs incurred in developing or obtaining internally used software. Certain costs, such as maintenance and training, are expensed as incurred. Capitalized costs are amortized over a period of three to eight years and are subject to impairment evaluation. An impairment could be triggered if the company determines that the underlying software under review will no longer be used. The net balance of capitalized software development costs included in plant, property and equipment was $23.5 million and $30.5 million at December 29, 2018 and December 30, 2017, respectively. Amortization expense of capitalized software development costs, which is included in depreciation and amortization expense in the Consolidated Statements of Income, was $8.0 million, $4.1 million, and $3.3 million in fiscal years 2018, 2017, and 2016, respectively. |
Income Taxes | Income Taxes . The company accounts for income taxes using the asset and liability method and recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income as a discrete item in the period that includes the enactment date. On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act (the “Act”). The legislation significantly changed the U.S. tax law including a reduction to the corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. In conjunction with tax reform, the SEC provided guidance which allows recording provisional amounts related to tax reform and subsequent adjustments during and up to a one-year measurement period, with the requirement that the accounting be completed in a period not to exceed one year from the date of enactment. As such, our accounting for the income tax effects of the Act is complete as of December 29, 2018. The company’s prior year financial results included the income tax effects of the Act for which the accounting was complete, and provisional amounts for those specific income tax effects of the Act for which the accounting was incomplete, but a reasonable estimate could be determined. The Act is discussed further in Note 23, Income Taxes The company records a valuation allowance to reduce its deferred tax assets to the amount that is more likely than not to be realized. The company has considered carryback, future taxable income, and prudent and feasible tax planning strategies in assessing the need for the valuation allowance. In the event the company was to determine that it would be more likely than not able to realize its deferred tax assets in the future in excess of its net recorded amount, an adjustment to the valuation allowance would increase income in the period such a determination was made. Likewise, should the company determine that it would not more likely than not be able to realize all or part of its net deferred tax assets in the future, an adjustment to the valuation allowance would decrease income in the period such determination was made. The company releases the income tax effect from AOCI in the period that the underlying transaction impacts earnings. We adopted new accounting requirements that provide the option to reclassify stranded income tax effects resulting from the Act from AOCI to retained earnings. We elected to reclassify the stranded income tax effects resulting from the Act of $18.8 million from AOCI to retained earnings. This reclassification consists of deferred taxes originally recorded in AOCI that exceed the newly enacted federal corporate tax rate. The company recognizes a tax benefit from an uncertain tax position when it is more likely than not that the position will be sustained upon examination, including resolution of any related appeals or litigation process. Interest related to unrecognized tax benefits is recorded within the interest expense line in the accompanying Consolidated Statements of Income. See Note 23, Income Taxes The deductions column in the table below presents the amounts reduced in the deferred tax asset valuation allowance that were recorded to, and included as part of, deferred tax expense. The additions column represents amounts that increased the allowance. Activity in the deferred tax asset valuation allowance is as follows (amounts in thousands): Beginning Balance Deductions Additions Ending Balance Fiscal 2018 $ 111 $ — $ 253 $ 364 Fiscal 2017 $ 18 $ — $ 93 $ 111 Fiscal 2016 $ 18 $ — $ — $ 18 |
Self-Insurance Reserves | Self-Insurance Reserves . The company is self-insured for various levels of general liability, auto liability, workers’ compensation, and employee medical and dental coverage. Insurance reserves are calculated on an undiscounted basis based on actual claim data and estimates of incurred but not reported claims developed utilizing historical claim trends. Projected settlements of incurred but not reported claims are estimated based on pending claims and historical trends and data. |
Loss Contingencies | Loss Contingencies . Loss contingencies are recorded at the time it is probable an asset is impaired or a liability has been incurred and the amount can be reasonably estimated. For litigation claims the company considers the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the loss. Losses are recorded in selling, distribution, and administrative expense in our Consolidated Statements of Income. |
Net Income Per Common Share | Net Income Per Common Share . Basic net income per share is computed by dividing net income by the weighted average common shares outstanding for the period. Diluted net income per share is computed by dividing net income by the weighted average common and common equivalent shares outstanding for the period. Common stock equivalents consist of the incremental shares associated with the company’s stock compensation plans, as determined under the treasury stock method. The performance contingent restricted stock awards do not contain a non-forfeitable right to dividend equivalents and are included in the computation for diluted net income per share. Fully vested shares which have a deferral period extending beyond the vesting date are included in the computation for basic net income per share. See Note 21, , for additional disclosure. |
Variable Interest Entities | Variable Interest Entities . The incorporated IDPs in the DSD Segment are not voting interest entities since the company has no direct interest in each entity; however, they qualify as variable interest entities (“VIEs”). The IDPs who are formed as sole proprietorships are excluded from the VIE accounting analysis because sole proprietorships are not within scope for determination of VIE status. The company typically finances the incorporated IDP and also enters into a contract with the incorporated IDP to supply product at a discount for distribution in the IDPs’ territory. The combination of the company’s loans to the incorporated IDP and the ongoing supply arrangements with the incorporated IDP provides a level of protection to the equity owners of the various distributorships that would not otherwise be available. However, the company is not considered to be the primary beneficiary of the VIEs. See Note 16, , for additional disclosure of these VIEs. The company also maintains a transportation agreement with an entity that transports a significant portion of the company’s fresh bakery products from the company’s production facilities to outlying distribution centers. The company represents a significant portion of the entity’s revenue. This entity qualifies as a VIE, but the company has determined it is not the primary beneficiary of the VIE. See Note 16, Variable Interest Entities |
Pension/OPEB Obligations | Pension/OPEB Obligations . The company records net periodic benefit costs and obligations related to its three defined benefit pension and two other post-employment benefit (“OPEB”) plans based on actuarial valuations. These valuations reflect key assumptions determined by management, including the discount rate and expected long-term rate of return on plan assets. The expected long-term rate of return assumption considers the asset mix of the plans’ portfolios, past performance of these assets, the anticipated future economic environment, long-term performance of individual asset classes, and other factors. Material changes in benefit costs and obligations may occur in the future due to experience different than assumed and changes in these assumptions. Future benefit obligations and annual benefit costs could be impacted by changes in the discount rate, changes in the expected long-term rate of return, changes in the level of contributions to the plans’, and other factors. The company has elected to measure plan assets and obligations using the month-end that is closest to our fiscal year end. The measurement date will be December 31 st The company determines the fair value of substantially all its plans’ assets utilizing market quotes rather than developing “smoothed” values, “market related” values, or other modeling techniques. Plan asset gains or losses in a given year are included with other actuarial gains and losses due to re-measurement of the plans’ projected benefit obligations (“PBO”). If the total unrecognized gain or loss exceeds 10% of the larger of (i) the PBO or (ii) the market value of plan assets, the excess of the total unrecognized gain, or loss is amortized over the expected average future lifetime of participants in the frozen pension plans. The company uses a calendar year end for the measurement date since the plans are based on a calendar year and because it approximates the company’s fiscal year end. See Note 22, Postretirement Plans |
Pension Plan Assets | Pension Plan Assets . Effective January 1, 2014, the Finance Committee (“committee”) of the Board of Directors delegated its fiduciary and other responsibilities with respect to the plans to the newly established Investment Committee. The Investment Committee, which consists of certain members of management, establishes investment guidelines and strategies and regularly monitors the performance of the plans’ assets. The Investment Committee is responsible for executing these strategies and investing the pension assets in accordance with ERISA and fiduciary standards. The investment objective of the pension plans is to preserve the plans’ capital and maximize investment earnings within acceptable levels of risk and volatility. The Investment Committee meets on a regular basis with its investment advisors to review the performance of the plans’ assets. Based upon performance and other measures and recommendations from its investment advisors, the Investment Committee rebalances the plans’ assets to the targeted allocation when considered appropriate. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments . On September 28, 2016, the company issued $400.0 million of senior notes (the “2026 notes”). On April 3, 2012, the company issued $400.0 million of senior notes (the “2022 notes”). These notes are recorded in our financial statements at carrying value, net of debt discount and issuance costs. The debt discount and issuance costs are being amortized over the ten year term of the note to interest expense. In addition and for disclosure purposes, the fair value of the notes is estimated using yields obtained from independent pricing sources for similar types of borrowing arrangements and is considered a Level 2 valuation. Additional details are included in Note 17, . |
Research and Development Costs | Research and Development Costs . The company recorded research and development costs of $4.9 million, $2.4 million, and $3.0 million for fiscal years 2018, 2017, and 2016, respectively. These costs are recorded as selling, distribution and administrative expenses in our Consolidated Statements of Income. |
Other Comprehensive Income | Other Comprehensive Income . The company reports comprehensive income in two separate but consecutive financial statements. See Note 20, , for additional required disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Sales by Sales Channel Category in Each Reportable Segment | Sales by sales channel category in each reportable segment are as follows for fiscal years 2018, 2017, and 2016 (amounts in thousands): Fiscal 2018 Fiscal 2017 Fiscal 2016 Total DSD Segment Warehouse Segment Total DSD Segment Warehouse Segment Total DSD Segment Warehouse Segment Branded retail $ 2,335,831 $ 2,188,638 $ 147,193 $ 2,303,301 $ 2,149,451 $ 153,850 $ 2,283,526 $ 2,114,142 $ 169,384 Store branded retail 597,147 483,001 114,146 582,738 471,199 111,539 582,280 464,456 117,824 Non-retail and other 1,018,874 668,408 350,466 1,034,694 697,913 336,781 1,061,079 705,579 355,500 Total $ 3,951,852 $ 3,340,047 $ 611,805 $ 3,920,733 $ 3,318,563 $ 602,170 $ 3,926,885 $ 3,284,177 $ 642,708 |
Allowance for Doubtful Accounts Activity | Activity in the allowance for doubtful accounts is as follows (amounts in thousands): Beginning Balance Charged to Expense Write-Offs and Other Ending Balance Fiscal 2018 $ 3,154 $ 6,963 $ 4,366 $ 5,751 Fiscal 2017 $ 1,703 $ 4,215 $ 2,764 $ 3,154 Fiscal 2016 $ 1,341 $ 3,365 $ 3,003 $ 1,703 |
Weighted Percentage of Sales from Largest Customers | Our largest customer, Walmart/Sam’s Club, weighted percent of sales for fiscal years 2018, 2017 and 2016 was as follows: Percent of Sales DSD Segment Warehouse Segment Total Fiscal 2018 17.9 % 2.4 % 20.3 % Fiscal 2017 17.6 % 2.4 % 20.0 % Fiscal 2016 17.0 % 2.6 % 19.6 % |
Estimated Useful Lives by Property Plant and Equipment Class | The table below presents the range of estimated useful lives by property, plant and equipment class. Useful life term (years) Asset Class Low High Buildings 10 40 Machinery and equipment 3 25 Furniture, fixtures and transportation equipment 3 15 |
Schedule of Depreciation Expense | Depreciation expense for fiscal years 2018, 2017, and 2016 was as follows (amounts in thousands): Depreciation expense Fiscal 2018 $ 118,232 Fiscal 2017 $ 119,445 Fiscal 2016 $ 116,367 |
Schedule of Total Impairments and Line Item Recorded in Our Consolidated Statements of Income | In fiscal 2018, we recorded asset impairment charges for long-lived held and used assets of $7.3 million. Total impairments, and the line item to which each item is recorded in our Consolidated Statements of Income, are presented below (amounts in thousands): Impairment of assets line item Unallocated corporate costs DSD Segment Warehouse Segment Total Property, plant and equipment $ 3,516 $ — $ — $ 3,516 Impairment of assets $ 3,516 $ — $ — $ 3,516 Restructuring and related impairment charges line item Unallocated corporate costs DSD Segment Warehouse Segment Total Plant closings $ — $ 2,952 $ 204 $ 3,156 Line closings — — 661 661 Impairment of assets $ — $ 2,952 $ 865 $ 3,817 |
Inventory Valuation Reserve | |
Summary of Valuation Allowance | Activity in the inventory reserve allowance is as follows (amounts in thousands): Beginning Balance Charged to Expense Write-Offs and Other Ending Balance Fiscal 2018 $ 673 $ 740 $ 1,270 $ 143 Fiscal 2017 $ 1,090 $ 1,684 $ 2,101 $ 673 Fiscal 2016 $ 238 $ 1,324 $ 472 $ 1,090 |
Valuation Allowance of Deferred Tax Assets | |
Summary of Valuation Allowance | The deductions column in the table below presents the amounts reduced in the deferred tax asset valuation allowance that were recorded to, and included as part of, deferred tax expense. The additions column represents amounts that increased the allowance. Activity in the deferred tax asset valuation allowance is as follows (amounts in thousands): Beginning Balance Deductions Additions Ending Balance Fiscal 2018 $ 111 $ — $ 253 $ 364 Fiscal 2017 $ 18 $ — $ 93 $ 111 Fiscal 2016 $ 18 $ — $ — $ 18 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Revisions to Applicable Consolidated Statements of Cash Flows Line Item to Correct the Errors | The tables below present the revisions to the applicable Consolidated Statements of Cash Flows line item to correct the errors for all periods presented (amounts in thousands): Fiscal 2016 Impacted Consolidated Cash Flow Statement line item As Previously Reported Revisions New Guidance(1) As Revised Other reconciling items to net income $ (3,957 ) $ — $ 3,851 $ (106 ) Other assets $ (11,107 ) $ 7,666 $ — $ (3,441 ) Other accrued liabilities $ 12,389 $ (999 ) $ — $ 11,390 Net cash provided by operating activities $ 346,044 $ 6,667 $ 3,851 $ 356,562 Repurchase of independent distributor territories $ (10,350 ) $ 1,479 $ — $ (8,871 ) Cash paid at issuance of notes receivable $ — $ (8,577 ) $ — $ (8,577 ) Other investing activities $ 2,091 $ 431 $ — $ 2,522 Net cash disbursed for investing activities $ (70,047 ) $ (6,667 ) $ — $ (76,714 ) (1) The table above includes the impact of adopting new share-based payment guidance discussed in Note 3, Recent Accounting Pronouncements |
Summary of Reclassification of Tax Effects to Retained Earnings from AOCI | The table below presents the impact of this reclassification on December 31, 2017 (amounts in thousands): Impacted Line Item (Dr (Cr)) Retained Earnings AOCI Pension and postretirement plans $ (17,097 ) $ 17,097 Hedged financial instruments (1,709 ) 1,709 Total reclassifications of stranded income tax effects to retained earnings from AOCI $ (18,806 ) $ 18,806 |
Accounting Standards Update 2017-07 | |
Revisions to Applicable Consolidated Statements of Cash Flows Line Item to Correct the Errors | The impact (including defined benefit and postretirement plans) for fiscal 2017 and fiscal 2016 is presented in the table below (amounts in thousands): Fiscal 2017 As reported Post-adoption* Materials, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately) $ 2,009,063 $ 2,009,473 Selling, distribution and administrative expenses $ 1,503,867 $ 1,510,015 Income from operations $ 162,912 $ 161,003 Other components of net periodic pension and postretirement benefits credit $ — $ (6,558 ) Fiscal 2016 As reported Post-adoption* Materials, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately) $ 2,026,367 $ 2,026,859 Selling, distribution and administrative expenses $ 1,464,236 $ 1,469,382 Income from operations $ 263,890 $ 264,898 Other components of net periodic pension and postretirement benefits credit $ — $ (5,638 ) |
Financial Statement Revisions (
Financial Statement Revisions (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Prior Period Adjustment [Abstract] | |
Revisions to Applicable Consolidated Statements of Cash Flows Line Item to Correct the Errors | The tables below present the revisions to the applicable Consolidated Statements of Cash Flows line item to correct the errors for all periods presented (amounts in thousands): Fiscal 2016 Impacted Consolidated Cash Flow Statement line item As Previously Reported Revisions New Guidance(1) As Revised Other reconciling items to net income $ (3,957 ) $ — $ 3,851 $ (106 ) Other assets $ (11,107 ) $ 7,666 $ — $ (3,441 ) Other accrued liabilities $ 12,389 $ (999 ) $ — $ 11,390 Net cash provided by operating activities $ 346,044 $ 6,667 $ 3,851 $ 356,562 Repurchase of independent distributor territories $ (10,350 ) $ 1,479 $ — $ (8,871 ) Cash paid at issuance of notes receivable $ — $ (8,577 ) $ — $ (8,577 ) Other investing activities $ 2,091 $ 431 $ — $ 2,522 Net cash disbursed for investing activities $ (70,047 ) $ (6,667 ) $ — $ (76,714 ) (1) The table above includes the impact of adopting new share-based payment guidance discussed in Note 3, Recent Accounting Pronouncements |
Loss on Inferior Ingredients (T
Loss on Inferior Ingredients (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
Summary of Total Costs and Recoveries | The table below presents the total costs and recoveries during fiscal 2018 (amounts in thousands): DSD Segment Warehouse Segment Total Expense recognized during fiscal 2018 $ 5,811 $ 1,557 $ 7,368 Recoveries recognized during fiscal 2018 (4,156 ) — (4,156 ) Total loss on ingredients $ 1,655 $ 1,557 $ 3,212 |
Summary of Currently Identifiable and Measurable Costs Reclassified in Consolidated Statements of Income by Segment Related to Production and Distribution Disruptions | The currently identifiable and measurable costs reclassified during fiscal 2018 in our Consolidated Statements of Income by segment related to these production and distribution disruptions were as follows (amounts in thousands): Fiscal 2018 Materials, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately): DSD Segment $ 951 Warehouse Segment $ 1,557 Total materials, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately) $ 2,508 Selling, distribution and administrative expenses: DSD Segment $ 704 Warehouse Segment $ — Total selling, distribution and administrative expenses $ 704 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Restructuring Impairments Recognized by Segment | The following restructuring impairments (inclusive of property, plant and equipment, packaging, and spare parts) were recognized, by segment, during fiscal 2018 (amounts in thousands): DSD Segment Warehouse Segment Total Plant closure costs $ 3,133 $ 204 $ 3,337 Line closure costs — 718 718 Product rationalization costs 1,155 383 1,538 Total impairment of assets $ 4,288 $ 1,305 $ 5,593 |
Components of Costs Associated with Project Centennial | The table below presents the components of costs associated with Project Centennial (amounts in thousands): Fiscal 2018 Fiscal 2017 Restructuring and related impairment charges: Reorganization costs $ 4,209 $ 1,925 VSIP (606 ) 29,665 Impairment of assets 5,593 69,601 Employee termination benefits 571 2,939 Restructuring and related impairment charges (1) 9,767 104,130 Project Centennial implementation costs (2) 9,723 37,306 Total Project Centennial restructuring and implementation costs $ 19,490 $ 141,436 (1) Presented on our Consolidated Statements of Income. (2) Costs are recorded in the selling, distribution, and administrative expenses line item of our Consolidated Statements of Income. |
Components of, and Changes in Restructuring Accruals | The table below presents the components of, and changes in, our restructuring accruals (amounts in thousands): VSIP Employee termination benefits (1) Reorganization costs (2) Total Liability balance at December 31, 2016 $ — $ — $ — $ — Charges 29,665 2,939 1,925 34,529 Cash payments (4,643 ) (2,471 ) (1,925 ) (9,039 ) Liability balance (3) at December 30, 2017 $ 25,022 $ 468 $ — $ 25,490 Charges (606 ) 571 4,209 4,174 Cash payments (24,242 ) (812 ) (4,209 ) (29,263 ) Liability balance (3) at December 29, 2018 $ 174 $ 227 $ — $ 401 (1) Employee termination benefits not related to the VSIP. (2) Reorganization costs include employee relocation expenses. (3) Recorded in the other accrued current liabilities line item of our Consolidated Balance Sheets. |
Divestiture (Tables)
Divestiture (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Business Combinations [Abstract] | |
Computation of Gain on Divestiture | The table below presents a computation of the gain on divestiture (amounts in thousands): Cash consideration received $ 41,230 Recognized amounts of identifiable assets acquired and liabilities assumed by buyer: Property, plant, and equipment recorded as assets held for sale 3,824 Goodwill 801 Financial assets 7,730 Net derecognized amounts of identifiable assets sold 12,355 Gain on divestiture $ 28,875 |
Notes Receivable from IDPs (Tab
Notes Receivable from IDPs (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Receivables [Abstract] | |
Interest Income Related to Notes Receivable | During fiscal years 2018, 2017, and 2016 the following amounts were recorded as interest income, the majority of which relates to these notes receivable (amounts in thousands): Interest income Fiscal 2018 $ 27,755 Fiscal 2017 $ 22,938 Fiscal 2016 $ 20,552 |
Assets Held for Sale (Tables)
Assets Held for Sale (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Property Plant And Equipment Assets Held For Sale Disclosure [Abstract] | |
Proceeds from Sale of Acquired Hostess Bread Assets | The table below presents the proceeds from the sale of the Acquired Hostess Bread Assets for fiscal years 2018, 2017, and 2016 (amounts in thousands): Proceeds sale of Acquired Hostess Bread Assets Fiscal 2018 $ 667 Fiscal 2017 $ 6,848 Fiscal 2016 $ 9,079 |
Assets Held for Sale | The table below presents the assets held for sale as of December 29, 2018 and December 30, 2017, respectively (amounts in thousands): December 29, 2018 December 30, 2017 Distribution rights $ 3,188 $ 13,584 Acquired Hostess Bread Assets plants and depots 2,360 479 Other 1,058 1,260 Total assets held for sale $ 6,606 $ 15,323 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill and Other Intangible Assets | The table below summarizes our goodwill and other intangible assets at December 29, 2018 and December 30, 2017, respectively, each of which is explained in additional detail below (amounts in thousands): December 29, 2018 December 30, 2017 Goodwill $ 545,379 $ 464,777 Amortizable intangible assets, net of amortization 588,329 535,842 Indefinite-lived intangible assets 206,600 206,600 Total goodwill and other intangible assets $ 1,340,308 $ 1,207,219 |
Carrying Amount of Goodwill by Segment | The changes in the carrying amount of goodwill, by segment, during fiscal 2017 and fiscal 2018, are as follows (amounts in thousands): DSD Segment Warehouse Segment Total Balance as of December 31, 2016 $ 424,563 $ 41,015 $ 465,578 Change in goodwill related to divestiture — (801 ) (801 ) Balance as of December 30, 2017 $ 424,563 $ 40,214 $ 464,777 Change in goodwill related to acquisition 57,056 23,546 80,602 Balance as of December 29, 2018 $ 481,619 $ 63,760 $ 545,379 |
Amortizable Intangible Assets | As of December 29, 2018 and December 30, 2017, the company had the following amounts related to amortizable intangible assets (amounts in thousands): December 29, 2018 December 30, 2017 Asset Cost Accumulated Amortization Net Value Cost Accumulated Amortization Net Value Trademarks $ 413,092 $ 44,711 $ 368,381 $ 371,392 $ 34,716 $ 336,676 Customer relationships 318,021 99,904 218,117 281,621 84,280 197,341 Non-compete agreements 5,154 4,874 280 4,874 4,874 — Distributor relationships 4,123 2,572 1,551 4,123 2,298 1,825 Total $ 740,390 $ 152,061 $ 588,329 $ 662,010 $ 126,168 $ 535,842 |
Schedule of Restructuring Impairment Charges by Segment | The table below presents the restructuring impairment charges by segment for fiscal 2017 (amounts in thousands): DSD Segment Warehouse Segment Total Indefinite-lived intangible assets $ 18,500 $ — $ 18,500 Finite-lived intangible assets 36,612 11,135 47,747 Restructuring impairment charges $ 55,112 $ 11,135 $ 66,247 |
Amortization Expense | Amortization expense Amortization expense for fiscal years 2018, 2017, and 2016 was as follows (amounts in thousands): Amortization expense Fiscal 2018 $ 25,892 Fiscal 2017 $ 27,274 Fiscal 2016 $ 24,502 |
Estimated Amortization of Intangibles | Estimated amortization of intangibles for fiscal 2019 and the next four years thereafter is as follows (amounts in thousands): Fiscal year Amortization of Intangibles 2019 $ 29,210 2020 $ 28,606 2021 $ 27,893 2022 $ 27,189 2023 $ 26,309 |
Acquisitions (Tables)
Acquisitions (Tables) - Canyon Bakehouse LLC | 12 Months Ended |
Dec. 29, 2018 | |
Summary of Consideration Paid Based on the Fair Value at the Acquisition Date | The following table summarizes the consideration paid for Canyon based on the fair value at the acquisition date (amounts in thousands): Fair Value of consideration transferred: Cash consideration paid $ 200,208 Working capital adjustments 299 Contingent consideration 4,700 Total consideration $ 205,207 Recognized amounts of identifiable assets acquired and liabilities assumed: Property, plant, and equipment $ 42,128 Identifiable intangible assets 78,380 Financial assets 4,097 Net recognized amounts of identifiable assets acquired 124,605 Goodwill $ 80,602 Property, plant and equipment in the table above includes real property and machinery and equipment |
Schedule of Intangible Assets Subject to Amortization | The following table presents the acquired intangible assets subject to amortization (amounts in thousands, except amortization periods): Total Weighted amortization years Attribution Method Trademarks $ 41,700 40.0 Straight-line Customer relationships 36,400 25.0 Sum of year digits Noncompete agreements 280 1.7 Straight-line $ 78,380 32.9 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Net Fair Value of Commodity Price Risk | As of December 29, 2018, the company’s commodity hedge portfolio contained derivatives which are recorded in the following accounts with fair values measured as indicated (amounts in thousands): Level 1 Level 2 Level 3 Total Assets: Other current assets $ 501 $ — $ — $ 501 Other long-term assets — — — — Total $ 501 $ — $ — $ 501 Liabilities: Other current liabilities $ (7,732 ) $ — $ — $ (7,732 ) Other long-term liabilities (1,203 ) — — (1,203 ) Total $ (8,935 ) $ — $ — $ (8,935 ) Net Fair Value $ (8,434 ) $ — $ — $ (8,434 ) As of December 30, 2017, the company’s commodity hedge portfolio contained derivatives which are recorded in the following accounts with fair values measured as indicated (amounts in thousands): Level 1 Level 2 Level 3 Total Assets: Other current assets $ 259 $ — $ — $ 259 Other long-term assets 32 — — 32 Total $ 291 $ — $ — $ 291 Liabilities: Other current liabilities $ (10,247 ) $ — $ — $ (10,247 ) Other long-term liabilities (639 ) — — (639 ) Total (10,886 ) — — (10,886 ) Net Fair Value $ (10,595 ) $ — $ — $ (10,595 ) |
Derivative Held for Hedging the Risk of Changes in Forecasted Interest Payments on Issuance of Long-term Debt | The following table outlines the company’s derivatives which were hedging the risk of changes in forecasted interest payments on forecasted issuance of long-term debt (amounts in thousands, before tax, and an asset is a positive value and a liability is a negative value): Terminated Description Aggregate Notional Amount Fair Value When Terminated Fair Value Deferred in AOCI (1) Ineffective Portion at Termination April/2012 Treasury lock $ 500,000 $ (3,137 ) $ 2,510 $ 627 September/2016 Treasury lock $ 200,000 $ 1,298 $ (1,298 ) $ — September/2016 Treasury lock $ 150,000 $ (323 ) $ 215 $ 108 (1) The amount reported in AOCI will be reclassified to interest expense as interest payments are made on the related notes. |
Derivative Instruments Recorded on Consolidated Balance Sheet | The company had the following derivative instruments recorded on the Consolidated Balance Sheets, all of which are utilized for the risk management purposes detailed above (amounts in thousands): Derivative Assets December 29, 2018 December 30, 2017 Derivatives Designated as Hedging Instruments Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity contracts Other current assets $ 501 Other current assets $ 259 Commodity contracts Other long-term assets — Other long-term assets 32 Total $ 501 $ 291 Derivative Liabilities December 29, 2018 December 30, 2017 Derivatives Designated as Hedging Instruments Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity contracts Other current liabilities $ 7,732 Other current liabilities $ 10,247 Commodity contracts Other long-term liabilities 1,203 Other long-term liabilities 639 Total $ 8,935 $ 10,886 |
Effect of Derivative Instruments for Deferred Gains And (Losses) on Closed Contracts and Effective Portion in Fair Value on AOCI, Utilized for Risk Management Purposes (Detail) | The company had the following derivative instruments for deferred gains and (losses) on closed contracts and the effective portion for changes in fair value recorded in AOCI (no amounts were excluded from the effectiveness test), all of which are utilized for the risk management purposes detailed above (amounts in thousands and net of tax): Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) (Net of tax) Derivatives in Cash Flow Hedging Relationships Fiscal 2018 Fiscal 2017 Fiscal 2016 Interest rate contracts $ — $ — $ 666 Commodity contracts 2,978 (6,789 ) 5,064 Total $ 2,978 $ (6,789 ) $ 5,730 Amount of (Gain) or Loss Reclassified from Accumulated OCI into Income (Effective Portion)(Net of tax) Location of (Gain) or Loss Reclassified from AOCI into Income Derivatives in Cash Flow Hedging Relationships Fiscal 2018 Fiscal 2017 Fiscal 2016 (Effective Portion) Interest rate contracts $ 107 $ 88 $ 135 Interest expense (income) Commodity contracts 972 1,279 3,264 Production costs (1) Total $ 1,079 $ 1,367 $ 3,399 1. Included in Materials, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately). |
Accumulated Other Comprehensive Loss (Income) Related to Derivative Transactions | The balance in accumulated other comprehensive loss (income) related to commodity price risk and interest rate risk derivative transactions that are closed or will expire over the next three years are as follows (amounts in thousands and net of tax) at December 29, 2018: Commodity Price Risk Derivatives Interest Rate Risk Derivatives Totals Closed contracts $ (2,153 ) $ (15 ) $ (2,168 ) Expiring in 2019 5,405 — 5,405 Expiring in 2020 782 — 782 Expiring in 2021 112 — 112 Expiring in 2022 6 — 6 Total $ 4,152 $ (15 ) $ 4,137 |
Financial Contracts Hedging Commodity Risks | As of December 29, 2018, the company had entered into the following financial contracts to hedge commodity risks (amounts in thousands): Derivatives in Cash Flow Hedging Relationships Notional amount Wheat contracts $ 122,946 Soybean oil contracts 20,372 Corn contracts 10,570 Natural gas contracts 16,996 Total $ 170,884 |
Other Current and Non-Current_2
Other Current and Non-Current Assets (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Components of Other Current Assets | Other current assets consist of (amounts in thousands): December 29, 2018 December 30, 2017 Prepaid assets $ 22,286 $ 22,154 Fair value of derivative instruments 501 259 Collateral to counterparties for derivative positions 15,408 16,324 Income taxes receivable 3,917 10,133 Other 1,125 767 Total $ 43,237 $ 49,637 |
Components of Other Non-Current Assets | Other non-current assets consist of (amounts in thousands): December 29, 2018 December 30, 2017 Unamortized financing fees $ 1,391 $ 1,787 Investments 3,125 3,434 Notes receivable — 2,464 Deposits 2,257 2,342 Other 154 201 Total $ 6,927 $ 10,228 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Components of Other Accrued Liabilities | Other accrued liabilities consist of (amounts in thousands): December 29, 2018 December 30, 2017 Employee compensation $ 19,469 $ 15,276 VSIP liabilities 174 25,022 Employee vacation 23,345 22,638 Employee bonus 7,931 29,369 Fair value of derivative instruments 7,732 10,247 Insurance 29,353 30,052 Bank overdraft 10,550 5,699 Accrued interest 8,152 7,711 Accrued taxes 5,661 10,943 Accrued legal costs 3,874 7,877 Accrued advertising 3,145 1,477 Accrued legal settlements 9,053 6,928 Multi-employer pension plan withdrawal costs — 15,223 Accrued short term deferred income 5,525 4,940 Contingent acquisition consideration 4,700 — Other 8,695 7,066 Total $ 147,359 $ 200,468 |
Debt, Lease and Other Commitm_2
Debt, Lease and Other Commitments (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Capital Leases | Long-term debt, including capital lease obligations, consisted of the following at December 29, 2018 and December 30, 2017: Interest Rate at December 29, 2018 Final Maturity December 29, 2018 December 30, 2017 (Amounts in thousands) Unsecured credit facility 5.60% 2022 $ — $ — 2026 notes 3.50% 2026 395,550 394,978 2022 notes 4.38% 2022 398,423 397,941 Accounts receivable securitization facility 3.43% 2020 177,000 — Capital lease obligations 3.92% 2026 21,942 27,150 Other notes payable 2.10% 2020 8,621 12,167 1,001,536 832,236 Current maturities of long-term debt and capital lease obligations 10,896 12,095 Long-term debt and capital lease obligations $ 990,640 $ 820,141 |
Schedule of debt discount, underwriting fees and the legal and other fees | The table below presents the debt discount, underwriting fees and the legal and other fees for issuing the 2026 notes (amounts in thousands): Total fees for 2026 notes Amount at Issuance Debt discount $ 2,108 Underwriting, legal, and other fees 3,634 Total fees $ 5,742 |
Schedule of Borrowings and Repayments Under Credit Facility | Amounts outstanding under the credit facility vary daily. Changes in the gross borrowings and repayments can be caused by cash flow activity from operations, capital expenditures, acquisitions, dividends, share repurchases, and tax payments, as well as derivative transactions which are part of the company’s overall risk management strategy as discussed in Note 12, Derivative Financial Instruments Amount (thousands) Balance as of December 30, 2017 $ — Borrowings 5,900 Payments (5,900 ) Balance as of December 29, 2018 $ — |
Schedule of Net Amount Available Under Credit Facility | The table below presents the net amount available under the credit facility as of December 29, 2018: Amount (thousands) Gross amount available $ 500,000 Outstanding — Letters of credit (8,400 ) Available for withdrawal $ 491,600 |
Schedule of Highest and Lowest Outstanding Balance Under Credit Facility | The table below presents the highest and lowest outstanding balance under the credit facility during fiscal 2018: Amount (thousands) High balance $ 4,900 Low balance $ — |
Aggregate Maturities of Debt Outstanding (Including Capital Leases) | Aggregate maturities of debt outstanding, including capital leases, as of December 29, 2018, are as follows (excluding unamortized debt discount and issuance costs) (amounts in thousands): 2019 $ 10,896 2020 183,874 2021 3,886 2022 402,395 2023 2,108 Thereafter 404,533 Total $ 1,007,692 |
Reconciliation of Debt Issuance Costs and Debt Discounts to the Net Carrying Value for Each Debt Obligation (Excluding Line of Credit Arrangements) | The table below reconciles the debt issuance costs and debt discounts to the net carrying value of each of our debt obligations (excluding line-of-credit arrangements) at December 29, 2018 (amounts in thousands): Face Value Debt issuance costs and debt discount Net carrying value 2026 notes $ 400,000 $ 4,450 $ 395,550 2022 notes 400,000 1,577 398,423 Other notes payable 8,750 129 8,621 Total $ 808,750 $ 6,156 $ 802,594 The table below reconciles the debt issuance costs and debt discounts to the net carrying value of each of our debt obligations (excluding line-of-credit arrangements) at December 30, 2017 (amounts in thousands): Face Value Debt issuance costs and debt discount Net carrying value 2026 notes $ 400,000 $ 5,022 $ 394,978 2022 notes 400,000 2,059 397,941 Other notes payable 12,500 333 12,167 Total $ 812,500 $ 7,414 $ 805,086 |
Future Minimum Lease Payments under Scheduled Capital Leases | Future minimum lease payments under scheduled capital leases that have initial or remaining non-cancelable terms in excess of one year are as follows (amounts in thousands): Capital Leases 2019 $ 6,392 2020 3,511 2021 4,191 2022 2,620 2023 2,263 Thereafter 4,631 Total minimum payments 23,608 Amount representing interest 1,666 Obligations under capital leases 21,942 Obligations due within one year 5,896 Long-term obligations under capital leases $ 16,046 |
Future Minimum Lease Payments under Scheduled Operating Leases | The table below presents the total future minimum lease payments under scheduled operating leases that have initial or remaining non-cancelable terms in excess of one year (amounts in thousands): Operating Leases 2019 $ 65,071 2020 60,378 2021 50,744 2022 44,798 2023 36,308 Thereafter 232,423 Total minimum payments $ 489,722 |
Schedule of Rent Expense for All Operating Leases | Rent expense for all operating leases was as follows (amounts in thousands): Rent expense Fiscal 2018 $ 90,660 Fiscal 2017 $ 95,014 Fiscal 2016 $ 97,357 |
Schedule of Deferred Compensation Amount Outstanding | The amounts outstanding at December 29, 2018 and December 30, 2017 were as follows (amounts in thousands): December 29, 2018 December 30, 2017 Deferral elections outstanding $ 15,996 $ 15,732 Current portion of deferral elections 1,015 1,238 Long-term portion of deferral elections $ 14,981 $ 14,494 |
Fair Value of Financial Inst_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Fair Value Disclosures [Abstract] | |
Carrying Value of Distribution Rights Notes Receivable | At December 29, 2018 and December 30, 2017, respectively, the carrying value of the distribution rights notes receivable was as follows (amounts in thousands): December 29, 2018 December 30, 2017 Distribution rights notes receivable $ 230,470 $ 211,702 Current portion recorded in accounts and notes receivable, net 26,345 23,965 Long-term portion of distribution rights notes receivable $ 204,125 $ 187,737 |
Schedule of Fair Value of Notes | The fair value of the notes are presented in the table below (amounts in thousands, except level classification): Carrying Value Fair Value Level 2026 notes $ 395,550 $ 379,344 2 2022 notes $ 398,423 $ 403,852 2 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Equity [Abstract] | |
Shares Repurchased Under Stock Repurchase Plan | The table below presents the shares repurchased under the Stock Repurchase Plan during our fiscal 2018 (amounts in thousands except shares purchased): Fiscal 2018 Quarter Total Number of Shares Purchased Total Cost of Shares Purchased For the quarter ended April 21, 2018 120,147 $ 2,489 For the quarter ended July 14, 2018 — $ — For the quarter ended October 6, 2018 — $ — For the quarter ended December 29, 2018 — $ — Total 120,147 $ 2,489 |
Summary of Dividends Excluding Dividends on Vested Stock-Based Compensation Awards | During fiscal years 2018, 2017, and 2016, the company paid the following dividends, excluding dividends on vested stock-based compensation awards discussed in Note 19, Stock-Based Compensation Dividends paid Dividends paid per share Fiscal 2018 $ 149,716 $ 0.7100 Fiscal 2017 $ 140,429 $ 0.6700 Fiscal 2016 $ 130,490 $ 0.6250 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Cash Received, Windfall Tax Benefits, and Intrinsic Value from Stock Option Exercises | The cash received, the windfall tax benefits, and intrinsic value from stock option exercises for fiscal years 2018, 2017, and 2016 are set forth below (amounts in thousands): Fiscal 2018 Fiscal 2017 Fiscal 2016 Cash received from option exercises $ 791 $ 19,313 $ 27,631 Cash tax windfall benefit, net $ 111 $ 4,186 $ 3,746 Intrinsic value of stock options exercised $ 609 $ 14,994 $ 15,778 |
Payout Determined from Total Shareholder Return Shares | The Company TSR compared to the Peer Group TSR will determine the payout as set forth below (the “TSR Modifier”): Percentile Payout as % of Target 90th 200 % 70th 150 % 50th 100 % 30th 50 % Below 30th 0 % |
Performance-Contingent Restricted Stock Awards | The table below presents the TSR Modifier share adjustment, ROIC Modifier share adjustment, accumulated dividends on vested shares, and the tax windfall/shortfall at vesting of the performance-contingent restricted stock awards (amounts in thousands except for share data): Award granted Fiscal year vested TSR Modifier increase/(decrease) shares ROIC Modifier increase/(decrease) shares Dividends at vesting (thousands) Tax windfall/(shortfall) Fair value at vesting 2016 2018 (333,112 ) (114,190 ) $ 405 $ (2,130 ) $ 6,504 2015 2017 (378,219 ) (49,272 ) $ 392 $ (3,103 ) $ 6,316 2014 2015 (248,872 ) (13,637 ) $ 441 $ (3,090 ) $ 7,173 |
Performance-Contingent Restricted Stock Activity | A summary of the status of all of the company’s nonvested shares for performance-contingent restricted stock (including the TSR Shares and the ROIC Shares) for fiscal 2018, 2017 and 2016 is set forth below (amounts in thousands, except price data): Fiscal 2018 Fiscal 2017 Fiscal 2016 Number of Shares Weighted Average Fair Value Number of Shares Weighted Average Fair Value Number of Shares Weighted Average Fair Value Balance at beginning of year 1,575 $ 22.20 1,543 $ 21.53 1,349 $ 21.26 Initial grant — $ — 855 $ 21.61 801 $ 22.83 Vested (314 ) $ 21.89 (329 ) $ 19.14 (312 ) $ 22.02 Grant reduction for not achieving the ROIC modifier (114 ) $ 21.49 (49 ) $ 19.14 (249 ) $ 23.97 Grant reduction for not achieving the TSR modifier (333 ) $ 24.17 (378 ) $ 21.21 (14 ) $ 21.47 Forfeitures (35 ) $ 22.83 (67 ) $ 21.08 (32 ) $ 23.60 Balance at end of year 779 $ 21.64 1,575 $ 22.20 1,543 $ 21.53 |
Deferred and Restricted Stock Activity | The deferred and restricted stock activity for fiscal years 2018, 2017, and 2016 is set forth below (amounts in thousands, except price data): Fiscal 2018 Fiscal 2017 Fiscal 2016 Number of Shares Weighted Average Fair Value Number of Shares Weighted Average Fair Value Number of Shares Weighted Average Fair Value Nonvested shares at beginning of year 87 $ 18.70 149 $ 20.39 126 $ 21.89 Granted 78 $ 19.90 87 $ 18.70 95 $ 19.30 Vested (99 ) $ 18.70 (149 ) $ 20.39 (72 ) $ 21.59 Nonvested shares at end of year 66 $ 19.93 87 $ 18.70 149 $ 20.39 Vested and deferred shares at end of year 198 192 331 |
Summary of Company's Stock Based Compensation Expense | The following table summarizes the company’s stock-based compensation expense, all of which was recognized in selling, distribution, and administration expense, for fiscal years 2018, 2017 and 2016 (amounts in thousands): Fiscal 2018 Fiscal 2017 Fiscal 2016 Performance-contingent restricted stock awards $ 6,504 $ 14,326 $ 16,611 Deferred stock awards 1,644 1,767 2,161 Stock appreciation rights income — — (11 ) Total stock-based compensation expense $ 8,148 $ 16,093 $ 18,761 |
Total Shareholders Return | |
Payout Percentage of Total Shareholder Return Shares | The table below presents the payout percentage for each of the TSR awards: Award Fiscal year Payout (%) 2014 award Fiscal 2016 27 2015 award Fiscal 2017 0 2016 award Fiscal 2018 12.5 |
Performance Contingent Return On Invested Capital Shares | |
Payout Percentage of Total Shareholder Return Shares | The table below presents the payout percentage for each of the ROIC awards: Award Fiscal year Payout (%) 2014 award Fiscal 2016 96 2015 award Fiscal 2017 87 2016 award Fiscal 2018 70 |
Stock Option | |
Stock Option Activity | The stock option activity for fiscal years 2018, 2017, and 2016 pursuant to the EPIP is set forth below (amounts in thousands, except price data): Fiscal 2018 Fiscal 2017 Fiscal 2016 Options Weighted Average Exercise Price Options Weighted Average Exercise Price Options Weighted Average Exercise Price Outstanding at beginning of year 73 $ 10.87 1,846 $ 10.89 4,353 $ 10.97 Exercised (73 ) $ 10.87 (1,773 ) $ 10.89 (2,507 ) $ 11.02 Outstanding at end of year — $ — 73 $ 10.87 1,846 $ 10.89 Exercisable at end of year — 73 1,846 |
Performance-Contingent Total Shareholder Return Shares | |
Performance Contingent TSR Shares, ROIC Shares and Restricted Stock Awards | The following performance-contingent TSR Shares have been granted under the Omnibus Plan and have service period remaining (amounts in thousands, except price data): Grant date January 1, 2017 Shares granted 426 Assumed vesting date 3/1/2019 Fair value per share $ 23.31 |
Return On Invested Capital | |
Performance Contingent TSR Shares, ROIC Shares and Restricted Stock Awards | The following performance-contingent ROIC Shares have been granted under the Omnibus Plan and have service period remaining (amounts in thousands, except price data): Grant date January 1, 2017 Shares granted 426 Assumed vesting date 3/1/2019 Fair value per share $ 19.97 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) ("AOCI") (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Summary of Reclassifications Out of AOCI | During fiscal years 2018, 2017, and 2016, reclassifications out of AOCI were as follows (amounts in thousands): Amount Reclassified from AOCI Affected Line Item in the Statement Details about AOCI Components (Note 2) Fiscal 2018 Fiscal 2017 Fiscal 2016 Where Net Income is Presented Derivative instruments: Interest rate contracts $ (142 ) $ (142 ) $ (221 ) Interest expense Commodity contracts (1,301 ) (2,080 ) (5,307 ) Cost of sales, Note 3, below Total before tax $ (1,443 ) $ (2,222 ) $ (5,528 ) Total before tax Tax benefit 364 855 2,129 Tax benefit Total net of tax $ (1,079 ) $ (1,367 ) $ (3,399 ) Net of tax Pension and postretirement plans: Prior-service credits $ (175 ) $ (175 ) $ (175 ) Note 1, below Settlement loss (7,781 ) (4,649 ) (6,646 ) Note 1, below Actuarial losses (5,380 ) (5,858 ) (6,840 ) Note 1, below Total before tax $ (13,336 ) $ (10,682 ) $ (13,661 ) Total before tax Tax benefit 3,368 3,899 5,260 Tax benefit Total net of tax $ (9,968 ) $ (6,783 ) $ (8,401 ) Net of tax benefit Total reclassifications from AOCI $ (11,047 ) $ (8,150 ) $ (11,800 ) Net of tax benefit Note 1: These items are included in the computation of net periodic pension cost. See Note 22, Postretirement Plans Note 2: Amounts in parentheses indicate debits to determine net income. Note 3: Amounts are presented as an adjustment to reconcile net income to net cash provided by operating activities on the Consolidated Statements of Cash Flows. |
Summary of AOCI Exclusive of Reclassification | During fiscal years 2018, 2017, and 2016, amounts recognized in AOCI, exclusive of reclassifications, were as follows (amounts in thousands): Amount of Gain (Loss) Recognized in AOCI AOCI component Fiscal 2018 Fiscal 2017 Fiscal 2016 Derivative instruments: Interest rate contracts $ — $ — $ 1,083 Commodity contracts 3,984 (9,734 ) 8,233 Total before tax $ 3,984 $ (9,734 ) $ 9,316 Tax benefit (1,006 ) 2,945 (3,586 ) Total net of tax $ 2,978 $ (6,789 ) $ 5,730 Pension and postretirement plans: Current year actuarial loss $ (26,528 ) $ (4,307 ) $ (6,525 ) Total before tax $ (26,528 ) $ (4,307 ) $ (6,525 ) Tax benefit 6,697 1,670 2,512 Total net of tax $ (19,831 ) $ (2,637 ) $ (4,013 ) Total recognized in AOCI $ (16,853 ) $ (9,426 ) $ 1,717 During fiscal 2018, changes to AOCI, net of income tax, by component were as follows (amounts in thousands): Cash Flow Hedge Items Defined Benefit Pension Plan Items Total AOCI at December 30, 2017 $ (6,483 ) $ (78,076 ) $ (84,559 ) Other comprehensive gain (loss) before reclassifications 2,978 (19,831 ) (16,853 ) Reclassified to earnings from AOCI 1,079 9,968 11,047 Reclassified to retained earnings from AOCI (1,709 ) (17,097 ) (18,806 ) AOCI at December 29, 2018 $ (4,135 ) $ (105,036 ) $ (109,171 ) During fiscal 2017, changes to AOCI, net of income tax, by component were as follows (amounts in thousands): Cash Flow Hedge Items Defined Benefit Pension Plan Items Total AOCI at December 31, 2016 $ (1,061 ) $ (82,222 ) $ (83,283 ) Other comprehensive loss before reclassifications (6,789 ) (2,637 ) (9,426 ) Reclassified to earnings from AOCI 1,367 6,783 8,150 AOCI at December 30, 2017 $ (6,483 ) $ (78,076 ) $ (84,559 ) |
Loss Reclassified From AOCI for Commodity Contracts | The following table presents the net of tax amount of the loss reclassified from AOCI for our commodity contracts (amounts in thousands): Fiscal 2018 Fiscal 2017 Fiscal 2016 Gross loss reclassified from AOCI into income $ 1,301 $ 2,080 $ 5,307 Tax benefit (329 ) (801 ) (2,043 ) Net of tax $ 972 $ 1,279 $ 3,264 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Common Share | The following is a reconciliation of net income and weighted average shares for calculating basic and diluted earnings per common share for fiscal years 2018, 2017, and 2016 (amounts in thousands, except per share data): Fiscal 2018 Fiscal 2017 Fiscal 2016 Net income $ 157,160 $ 150,120 $ 163,776 Basic Earnings Per Common Share: Basic weighted average shares outstanding per common share 211,016 209,573 208,511 Basic earnings per common share $ 0.74 $ 0.72 $ 0.79 Diluted Earnings Per Common Share: Basic weighted average shares outstanding per common share 211,016 209,573 208,511 Add: Shares of common stock assumed issued upon exercise of stock options, vesting of performance-contingent restricted stock and deferred stock 616 862 1,843 Diluted weighted average shares outstanding per common share 211,632 210,435 210,354 Diluted earnings per common share $ 0.74 $ 0.71 $ 0.78 |
Postretirement Plans (Tables)
Postretirement Plans (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Summary of Company's Balance Sheet Related Pension and Other Postretirement Benefit Plan | The following summarizes the company’s balance sheet related pension and other postretirement benefit plan accounts at December 29, 2018 and December 30, 2017 (amounts in thousands): December 29, 2018 December 30, 2017 Current benefit liability $ 1,283 $ 935 Noncurrent benefit liability $ 39,149 $ 60,107 Accumulated other comprehensive loss, net of tax $ 105,036 $ 78,076 |
Summary of Recognized Settlement Charges by Quarter | The table below presents the recognized settlement charges by quarter for fiscal years 2018, 2017, and 2016 (amounts in thousands): Settlement loss by fiscal quarter Fiscal 2018 Fiscal 2017 Fiscal 2016 Quarter 1 $ 4,668 $ — $ — Quarter 2 1,035 — 4,641 Quarter 3 930 3,030 1,832 Quarter 4 1,148 1,619 173 Total $ 7,781 $ 4,649 $ 6,646 |
Fair Value of Plan Assets by Asset Class | The fair values of all of the company pension plan assets at December 31, 2018 and December 31, 2017, by asset class are as follows (amounts in thousands): Fair value of Pension Plan Assets as of December 31, 2018 Asset Class Quoted prices in active markets for identical assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Short term investments and cash $ — $ 34,118 $ — $ 34,118 Fixed income securities: U.S. government bonds — 4,581 — 4,581 U.S. government agency bonds — 3,561 — 3,561 U.S. corporate bonds — 166,670 — 166,670 International corporate bonds — 53,709 — 53,709 Other types of investments measured at contract value (^): Guaranteed insurance contracts(a) — — — 10,853 Pending transactions(b) — — — 59,452 Other assets and (liabilities)(b) — — — 2,636 Accrued (expenses) income(b) — — — (40 ) Total $ — $ 262,639 $ — $ 335,540 Fair value of Pension Plan Assets as of December 31, 2017 Asset Class Quoted prices in active markets for identical assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Short term investments and cash $ — $ 19,771 $ — $ 19,771 Equity securities: U.S. companies 65,414 — — 65,414 International companies 665 — — 665 Domestic equity funds(c) 19,879 — — 19,879 International equity funds(d) 22,178 — — 22,178 Fixed income securities: U.S. government bonds — 6,538 — 6,538 U.S. government agency bonds — 10,531 — 10,531 U.S. mortgage backed securities — 3,004 — 3,004 U.S. corporate bonds — 9,993 — 9,993 Other types of investments measured at net asset value (*): Hedged equity funds(e) — — — 35,054 Absolute return funds(f) — — — 52,704 International equity funds(d) — — — 22,878 Other types of investments measured at contract value (^): Guaranteed insurance contracts(a) — — — 10,457 Pending transactions(b) — — — 62,000 Other assets and (liabilities)(b) — — — (133 ) Accrued (expenses) income(b) — — — (79 ) Total $ 108,136 $ 49,837 $ — $ 340,854 (a) This class invests primarily guaranteed insurance contracts through various U.S. insurance companies. (b) This class includes accrued interest, dividends, and amounts receivable from asset sales and amounts payable for asset purchases. ( c ) This class includes funds with the principal strategy to invest primarily in long positions in domestic equity securities. ( d ) This class includes funds with the principal strategy to invest primarily in long positions in international equity securities. This asset was reclassified from a Level 2 to a Level 1 type for all periods. This asset was incorrectly presented as a Level 2. (e) This class invests primarily in hedged equity funds. ( f ) This class invests primarily in absolute return strategy funds and are reported at NAV. (*) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. (^) Certain investments, which are fully-benefit responsive investment contracts, are measured at contract value and have not been classified in the fair value hierarchy. |
Plan Asset and Target Allocation | The plan asset allocation as of the measurement dates December 31, 2018 and December 31, 2017, and target asset allocations for fiscal year 2019 are as follows for Plan No. 1: Target Allocation Percentage of Plan Assets at the Measurement Date (As percent) Asset Category 2019 2018 2017 Equity securities 0 % 2.5 38.6 Fixed income securities 90-100% 73.7 27.1 Other diversifying strategies(1) 0 % 15.0 28.8 Short term investments and cash 0-10% 8.8 5.5 Total 100.0 100.0 (1) Includes absolute return funds, hedged equity funds, and guaranteed insurance contracts. |
Summary of Effect of One Percent Change in Assumed Health Care Cost | A one-percentage-point change in assumed health care cost trend rates would have the following effects for fiscal years 2018, 2017, and 2016 (amounts in thousands): One-Percentage-Point Decrease One-Percentage-Point Increase For the Year Ended For the Year Ended Fiscal 2018 Fiscal 2017 Fiscal 2016 Fiscal 2018 Fiscal 2017 Fiscal 2016 Effect on total of service and interest cost $ (52 ) $ (47 ) $ (58 ) $ 61 $ 55 $ 67 Effect on postretirement benefit obligation $ (467 ) $ (473 ) $ (427 ) $ 524 $ 533 $ 480 |
Multi Employer Plans | Pension Protection Act Contributions (Amounts in Zone Status thousands) Expiration Date of Pension FIP/RP Status 2018 2017 2016 Surcharge Collective Bargaining Pension Fund EIN Plan No. 2018 2017 Pending/Implemented ($) ($) ($) Imposed Agreement IAM National Pension Fund 51-6031295 002 Green Green No 108 139 121 No 4/30/2021 Retail, Wholesale and Department Store International Union and Industry Pension Fund 63-0708442 001 Red Red Yes 159 157 156 No 8/14/2021 Western Conference of Teamsters Pension Trust 91-6145047 001 Green Green No 293 276 233 No 2/4/2022 BC&T International Pension Fund* 52-6118572 001 * * Yes 220 965 1,194 Yes 10/25/2020 * The union employees withdrew from the fund effective November 1, 2017. The collective bargaining agreement is still in effect. |
Summary of Total Cost and Employer Contributions | During fiscal years 2018, 2017, and 2016, the total cost and employer contributions were as follows (amounts in thousands): Contributions by fiscal year Defined contribution plans expense Fiscal 2018 $ 25,523 Fiscal 2017 $ 28,346 Fiscal 2016 $ 27,057 |
Pension plans | |
Components of Net Periodic Benefit / (Income) Cost | The net periodic pension cost (income) for the company’s pension plans includes the following components for fiscal years 2018, 2017 and 2016 (amounts in thousands): Fiscal 2018 Fiscal 2017 Fiscal 2016 Service cost $ 937 $ 755 $ 830 Interest cost 12,513 12,852 13,682 Expected return on plan assets (18,831 ) (25,669 ) (26,644 ) Settlement loss 7,781 4,649 6,646 Amortization: Prior service cost 387 387 387 Actuarial loss 5,811 6,355 7,294 Net periodic pension cost (income) 8,598 (671 ) 2,195 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Current year actuarial loss (gain) 25,492 4,119 8,879 Settlement loss (7,781 ) (4,649 ) (6,646 ) Amortization of prior service cost (387 ) (387 ) (387 ) Amortization of actuarial loss (5,811 ) (6,355 ) (7,294 ) Total recognized in other comprehensive (loss) income 11,513 (7,272 ) (5,448 ) Total recognized in net periodic benefit cost and other comprehensive loss $ 20,111 $ (7,943 ) $ (3,253 ) |
Funded Status and Amounts Recognized in Consolidated Balance Sheets | The funded status and the amounts recognized in the Consolidated Balance Sheets for the company’s pension plans are as follows (amounts in thousands): December 29, 2018 December 30, 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 393,952 $ 398,595 Service cost 937 755 Interest cost 12,513 12,852 Actuarial loss 9,098 20,526 Benefits paid (23,843 ) (24,408 ) Settlements (24,879 ) (14,368 ) Benefit obligation at end of year $ 367,778 $ 393,952 Change in plan assets: Fair value of plan assets at beginning of year $ 340,854 $ 335,663 Actual return on plan assets 2,437 42,076 Employer contribution 40,971 1,891 Benefits paid (23,843 ) (24,408 ) Settlements (24,879 ) (14,368 ) Fair value of plan assets at end of year $ 335,540 $ 340,854 Funded status, end of year: Fair value of plan assets $ 335,540 $ 340,854 Benefit obligations (367,778 ) (393,952 ) Unfunded status and amount recognized at end of year $ (32,238 ) $ (53,098 ) Amounts recognized in the balance sheet: Current liability (258 ) (260 ) Noncurrent liability (31,980 ) (52,838 ) Amount recognized at end of year $ (32,238 ) $ (53,098 ) Amounts recognized in accumulated other comprehensive income: Net actuarial loss before taxes $ 137,903 $ 126,002 Prior service cost before taxes 5,039 5,426 Amount recognized at end of year $ 142,942 $ 131,428 Accumulated benefit obligation at end of year $ 366,709 $ 392,057 |
Weighted Average Assumptions Used | Assumptions used in accounting for the company’s pension plans at each of the respective fiscal years ending are as follows: Fiscal 2018 Fiscal 2017 Fiscal 2016 Weighted average assumptions used to determine benefit obligations: Measurement date 12/31/2018 12/31/2017 12/31/2016 Discount rate 3.41 % 3.58 % 4.00 % Rate of compensation increase 3.00 % 3.00 % 3.00 % Weighted average assumptions used to determine net periodic benefit cost/(income): Measurement date 1/1/2018 1/1/2017 1/1/2016 Discount rate 3.58 % 4.00 % 4.25 % Expected return on plan assets 5.34 % 8.00 % 8.00 % Rate of compensation increase 3.00 % 3.00 % 3.00 % |
Company Contributions | Company contributions to qualified and nonqualified plans are as follows (amounts in thousands): Year Required Discretionary Total 2018 $ 271 $ 40,700 $ 40,971 2017 $ 286 $ 1,605 $ 1,891 2016 $ 341 $ 1,000 $ 1,341 |
Benefits Expected to be Paid from Plans Assets | The following are benefits paid under the plans (including settlements) during fiscal years 2018, 2017 and 2016 and expected to be paid from fiscal 2019 through fiscal 2028. Estimated future payments include qualified pension benefits that will be paid from the plans’ assets (including potential payments related to the termination of Plan No. 1 discussed above) and nonqualified pension benefits that will be paid from corporate assets (amounts in thousands): Year Pension Benefits 2016 $ 40,864 * 2017 $ 38,776 ^ 2018 $ 48,722 + Estimated Future Payments: 2019 $ 31,431 2020 $ 327,280 2021 $ 2,630 2022 $ 2,715 2023 $ 2,585 2024 – 2028 $ 11,135 * Includes $15.7 million and $1.6 million from Plan No. 1 and Plan No. 2, respectively, paid as lump sums. ^ Includes $14.4 million and $1.6 million from Plan No. 1 and Plan No. 2, respectively, paid as lump sums. |
Postretirement Benefit Plans | |
Components of Net Periodic Benefit / (Income) Cost | The net periodic benefit (income) cost for the company’s postretirement benefit plans includes the following components for fiscal years 2018, 2017 and 2016 (amounts in thousands): Fiscal 2018 Fiscal 2017 Fiscal 2016 Service cost $ 288 $ 256 $ 401 Interest cost 234 227 309 Amortization: Prior service credit (212 ) (212 ) (212 ) Actuarial gain (431 ) (497 ) (454 ) Total net periodic benefit income (121 ) (226 ) 44 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Current year actuarial loss (gain) 1,036 188 (2,354 ) Amortization of actuarial gain 431 497 454 Amortization of prior service credit 212 212 212 Total recognized in other comprehensive loss (income) 1,679 897 (1,688 ) Total recognized in net periodic benefit cost and other comprehensive loss (income) $ 1,558 $ 671 $ (1,644 ) |
Weighted Average Assumptions Used | Assumptions used in accounting for the company’s postretirement benefit plans at each of the respective fiscal years ending are as follows: Fiscal 2018 Fiscal 2017 Fiscal 2016 Weighted average assumptions used to determine benefit obligations: Measurement date 12/31/2018 12/31/2017 12/31/2016 Discount rate 4.07 % 3.36 % 3.66 % Health care cost trend rate used to determine benefit obligations: Initial rate 6.50 % 6.00 % 6.50 % Ultimate rate 5.00 % 5.00 % 5.00 % Year trend reaches the ultimate rate 2025 2022 2023 Weighted average assumptions used to determine net periodic cost: Measurement date 1/1/2018 1/1/2017 1/1/2016 Discount rate 3.36 % 3.66 % 3.83 % Health care cost trend rate used to determine net periodic cost: Initial rate 6.00 % 6.50 % 8.00 % Ultimate rate 5.00 % 5.00 % 5.00 % Year trend reaches the ultimate rate 2022 2023 2022 |
Company Contributions | Company contributions to postretirement plans are as follows (amounts in thousands): Year Employer Net Contribution 2016 $ 841 2017 $ 376 2018 $ 1,308 2019 (Expected) $ 1,041 |
Benefits Expected to be Paid from Plans Assets | The following are benefits paid by the company during fiscal years 2018, 2017 and 2016 and expected to be paid from fiscal 2019 through fiscal 2028. All benefits are expected to be paid from the company’s assets (amounts in thousands): Postretirement benefits Year Employer gross contribution 2016 $ 841 2017 $ 376 2018 $ 1,308 Estimated Future Payments: 2019 $ 1,041 2020 $ 867 2021 $ 812 2022 $ 732 2023 $ 696 2024 – 2028 $ 3,608 |
Changes in Projected Benefit Obligations | The unfunded status and the amounts recognized in the Consolidated Balance Sheets for the company’s postretirement benefit plans are as follows (amounts in thousands): December 29, 2018 December 30, 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 7,943 $ 7,648 Service cost 288 256 Interest cost 234 227 Participant contributions 823 330 Actuarial loss (gain) 1,037 188 Benefits paid (2,131 ) (706 ) Benefit obligation at end of year $ 8,194 $ 7,943 Change in plan assets: Fair value of plan assets at beginning of year $ — $ — Employer contributions 1,308 376 Participant contributions 823 330 Benefits paid (2,131 ) (706 ) Fair value of plan assets at end of year $ — $ — Funded status, end of year: Fair value of plan assets $ — $ — Benefit obligations (8,194 ) (7,943 ) Unfunded status and amount recognized at end of year $ (8,194 ) $ (7,943 ) Amounts recognized in the balance sheet: Current liability $ (1,025 ) $ (674 ) Noncurrent liability (7,169 ) (7,269 ) Amount recognized at end of year $ (8,194 ) $ (7,943 ) Amounts recognized in accumulated other comprehensive loss: Net actuarial gain before taxes $ (2,379 ) $ (3,846 ) Prior service credit before taxes (50 ) (262 ) Amounts recognized in accumulated other comprehensive loss $ (2,429 ) $ (4,108 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense (Benefit) | The company’s provision for income tax expense (benefit) consists of the following for fiscal years 2018, 2017 and 2016 (amounts in thousands): Fiscal 2018 Fiscal 2017 Fiscal 2016 Current Taxes: Federal $ 11,642 $ 53,076 $ 86,235 State 6,702 7,403 13,983 18,344 60,479 100,218 Deferred Taxes: Federal 21,762 (59,385 ) (11,656 ) State (105 ) (1,921 ) (2,801 ) 21,657 (61,306 ) (14,457 ) Income tax expense (benefit) $ 40,001 $ (827 ) $ 85,761 |
Reconciliation of Effective Tax Amount | Income tax expense (benefit) differs from the amount computed by applying the applicable U.S. federal income tax rate of 21% for fiscal year 2018, and 35% for fiscal years 2017, and 2016 (amounts in thousands): Fiscal 2018 Fiscal 2017 Fiscal 2016 Tax at U.S. federal income tax rate $ 41,404 $ 52,253 $ 87,338 State income taxes, net of federal income tax benefit 5,213 3,564 7,266 Tax reform impact (5,575 ) (48,160 ) — Section 199 qualifying production activities benefit — (5,422 ) (8,007 ) Net share-based payments (windfalls) shortfalls* 1,639 (1,001 ) — Other (2,680 ) (2,061 ) (836 ) Income tax expense (benefit) $ 40,001 $ (827 ) $ 85,761 * Applied beginning in fiscal 2017 upon adoption of new guidance. |
Components of Deferred Tax Assets and (Liabilities) | Deferred tax assets (liabilities) are comprised of the following (amounts in thousands): December 29, 2018 December 30, 2017 Self-insurance $ 5,208 $ 4,972 Compensation and employee benefits 8,718 8,836 Deferred income 8,867 8,705 Loss and credit carryforwards 14,027 13,453 Equity-based compensation 4,646 6,831 Hedging 1,397 2,754 Pension and postretirement benefits 10,764 13,344 Other 9,639 9,657 Deferred tax assets valuation allowance (364 ) (111 ) Deferred tax assets 62,902 68,441 Depreciation (59,294 ) (47,552 ) Intangibles (104,380 ) (101,890 ) Other (1,886 ) (1,975 ) Deferred tax liabilities (165,560 ) (151,417 ) Net deferred tax liability $ (102,658 ) $ (82,976 ) |
Reconciliation of Total Amounts of Unrecognized Tax Benefits | The following is a reconciliation of the total amounts of unrecognized tax benefits for fiscal years 2018, 2017 and 2016 (amounts in thousands): Fiscal 2018 Fiscal 2017 Fiscal 2016 Unrecognized tax benefit at beginning of fiscal year $ 1,259 $ 1,754 $ 727 Gross increases — — 1,488 Lapses of statutes of limitations (509 ) (495 ) (461 ) Unrecognized tax benefit at end of fiscal year $ 750 $ 1,259 $ 1,754 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Segment Reporting [Abstract] | |
Information Regarding Operations in Reportable Segments | Information regarding the operations of these segments is as follows for fiscal years 2018, 2017, and 2016 (amounts in thousands): Fiscal 2018 Fiscal 2017 Fiscal 2016 Sales: DSD Segment $ 3,423,935 $ 3,383,564 $ 3,347,616 Warehouse Segment 787,431 767,844 787,233 Eliminations: Sales from Warehouse Segment to DSD Segment (175,626 ) (165,674 ) (144,525 ) Sales from DSD Segment to Warehouse Segment (83,888 ) (65,001 ) (63,439 ) $ 3,951,852 $ 3,920,733 $ 3,926,885 Gain on divestiture: Warehouse Segment $ — $ 28,875 $ — $ — $ 28,875 $ — Multi-employer pension plan withdrawal costs: DSD Segment $ 2,322 $ 18,268 $ — $ 2,322 $ 18,268 $ — Loss on inferior ingredients: DSD Segment $ 1,655 $ — $ — Warehouse Segment 1,557 — — $ 3,212 $ — $ — Restructuring and related impairment charges: DSD Segment $ 8,121 $ 80,026 $ — Warehouse Segment 1,394 20,122 — Unallocated corporate costs 252 3,982 — $ 9,767 $ 104,130 $ — Impairment of assets: DSD Segment $ 2,483 $ — $ 24,877 Unallocated corporate costs 3,516 — — $ 5,999 $ — $ 24,877 Depreciation and amortization: DSD Segment $ 122,300 $ 126,485 $ 120,009 Warehouse Segment 21,524 20,642 20,138 Unallocated corporate costs(1) 300 (408 ) 722 $ 144,124 $ 146,719 $ 140,869 Income from operations: DSD Segment $ 239,510 $ 202,239 $ 259,982 Warehouse Segment 37,646 54,738 58,465 Unallocated corporate costs(2) (64,812 ) (95,974 ) (53,549 ) $ 212,344 $ 161,003 $ 264,898 Interest expense $ 35,686 $ 36,557 $ 34,905 Interest income $ (27,755 ) $ (22,938 ) $ (20,552 ) Pension plan settlement loss $ 7,781 $ 4,649 $ 6,646 Other components of net periodic pension and postretirement benefits credit $ (529 ) $ (6,558 ) $ (5,638 ) Income before income taxes $ 197,161 $ 149,293 $ 249,537 Capital expenditures: DSD Segment $ 82,789 $ 64,317 $ 61,669 Warehouse Segment 14,929 6,933 16,792 Other(3) 1,704 3,982 23,266 $ 99,422 $ 75,232 $ 101,727 (1) Represents costs allocated to the company’s corporate head office. (2) Represents costs allocated to the company’s corporate head office and pension settlement loss. (3) Represents the company’s corporate head office assets including primarily cash and cash equivalents. |
Assets by Segment | December 29, 2018 December 30, 2017 Assets: DSD Segment $ 2,419,019 $ 2,270,179 Warehouse Segment 353,220 296,157 Other (3) 73,298 93,388 $ 2,845,537 $ 2,659,724 (1) Represents costs allocated to the company’s corporate head office. (2) Represents costs allocated to the company’s corporate head office and pension settlement loss. (3) Represents the company’s corporate head office assets including primarily cash and cash equivalents. |
Unaudited Quarterly Financial_2
Unaudited Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Results of Operations for Each Quarter | Results of operations for each of the four quarters in the respective fiscal years are as follows. Each quarter represents a period of twelve weeks, except the first quarter, which includes sixteen weeks (amounts in thousands, except per share data): First Quarter** Second Quarter** Third Quarter** Fourth Quarter Sales 2018 $ 1,206,453 $ 941,283 $ 923,449 $ 880,667 2017 $ 1,187,649 $ 926,639 $ 932,822 $ 873,623 Materials, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately)* 2018 $ 625,122 $ 488,871 $ 485,680 $ 467,155 2017 $ 608,068 $ 468,246 $ 476,264 $ 456,895 Net income (loss) 2018 $ 51,247 $ 45,442 $ 39,630 $ 20,841 2017 $ 60,418 $ 44,740 $ (33,571 ) $ 78,533 Basic net income (loss) per share 2018 $ 0.24 $ 0.22 $ 0.19 $ 0.10 2017 $ 0.29 $ 0.21 $ (0.16 ) $ 0.37 Diluted net income (loss) per share 2018 $ 0.24 $ 0.21 $ 0.19 $ 0.10 2017 $ 0.29 $ 0.21 $ (0.16 ) $ 0.37 * The company does not report gross margin. This line item presents our material, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately) under an alternative presentation. The table below presents financial results that impact comparability, by quarter, for fiscal 2018 (amounts in thousands): Items presented separately on the Consolidated Statements of Income First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal 2018 Footnote Loss (recovery) on inferior ingredients $ — $ 3,884 $ (1,891 ) $ 1,219 $ 3,212 Note 5 Restructuring and related impairment charges $ 1,259 $ 801 $ 497 $ 7,210 $ 9,767 Note 6 Multi-employer pension plan withdrawal costs $ 2,322 $ — $ — $ — $ 2,322 Note 22 Pension plan settlement loss $ 4,668 $ 1,035 $ 930 $ 1,148 $ 7,781 Note 22 Impairment of assets $ 2,483 $ — $ — $ 3,516 $ 5,999 Note 2,13 The table below presents financial results that impact comparability, by quarter, for fiscal 2017 (amounts in thousands): Items presented separately on the Consolidated Statements of Income First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal 2017 Footnote Gain on divestiture $ (28,875 ) $ — $ — $ — $ (28,875 ) Note 7 Restructuring and related impairment charges $ — $ — $ 100,549 $ 3,581 $ 104,130 Note 6 Multi-employer pension plan withdrawal costs $ — $ — $ 18,268 $ — $ 18,268 Note 22 Pension plan settlement loss $ — $ — $ 3,030 $ 1,619 $ 4,649 Note 22 Income tax benefit resulting from tax reform $ — $ — $ — $ (48,160 ) $ (48,160 ) Note 23 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) | May 03, 2017BusinessUnit | Dec. 29, 2018Segment |
Disclosure - Basis of Presentation - Additional Information (Detail) [Line Items] | ||
General Information | Flowers Foods is one of the largest producers and marketers of bakery products in the United States. The company currently consists of two business segments: direct-store-delivery (“DSD Segment”) and warehouse delivery (“Warehouse Segment”). The DSD Segment focuses on the production and marketing of bakery products throughout the East, South, Southwest, West Coast, and select markets in the Midwest, Nevada, and Colorado. The Warehouse Segment produces snack cakes, breads and rolls that are shipped both fresh and frozen to national retail, foodservice, vending, and co-pack customers through their warehouse channels. | |
Number of business segments | Segment | 2 | |
Number of new organizational structure business units established | BusinessUnit | 2 | |
Full implementation expected period | 2,019 |
Summary Of Significant Accoun_4
Summary Of Significant Accounting Policies - Additional Information (Detail) | Sep. 28, 2016USD ($) | Apr. 03, 2012USD ($) | Dec. 29, 2018USD ($) | Oct. 06, 2018USD ($) | [1] | Jul. 14, 2018USD ($) | [1] | Dec. 30, 2017USD ($) | Oct. 07, 2017USD ($) | [1] | Jul. 15, 2017USD ($) | [1] | Apr. 21, 2018USD ($) | [1] | Apr. 22, 2017USD ($) | [1] | Dec. 29, 2018USD ($)Segment | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) |
Significant Accounting Policies [Line Items] | |||||||||||||||||||
Sales | $ 880,667,000 | $ 923,449,000 | $ 941,283,000 | $ 873,623,000 | $ 932,822,000 | $ 926,639,000 | $ 1,206,453,000 | $ 1,187,649,000 | $ 3,951,852,000 | $ 3,920,733,000 | $ 3,926,885,000 | ||||||||
Deferred gain on sale of assets held for sale | 35,700,000 | 34,700,000 | 35,700,000 | 34,700,000 | |||||||||||||||
Net gain on sale of distribution rights | 4,400,000 | 3,300,000 | 3,100,000 | ||||||||||||||||
Equipment held under capital leases | 35,400,000 | 42,800,000 | 35,400,000 | 42,800,000 | |||||||||||||||
Total accumulated depreciation for assets held under capital leases | 13,400,000 | 15,700,000 | 13,400,000 | 15,700,000 | |||||||||||||||
Capitalized interest | 0 | 0 | 0 | $ 0 | 0 | ||||||||||||||
Impairment charge of long-lived assets held for use | 7,300,000 | 9,900,000 | |||||||||||||||||
Asset impairment charges | 200,000 | ||||||||||||||||||
Finite-lived intangible asset amortization periods | 30 years | ||||||||||||||||||
Impairment charge of indefinite intangible assets | $ 18,500,000 | ||||||||||||||||||
Goodwill impairment loss | $ 0 | 0 | 0 | ||||||||||||||||
Number of operating segments | Segment | 2 | ||||||||||||||||||
Advertising and marketing costs | $ 40,500,000 | 33,800,000 | 33,900,000 | ||||||||||||||||
Capitalized software development costs | 23,500,000 | 30,500,000 | 23,500,000 | 30,500,000 | |||||||||||||||
Amortization expense of capitalized software development costs | $ 8,000,000 | $ 4,100,000 | $ 3,300,000 | ||||||||||||||||
Corporate income tax rate | 21.00% | 35.00% | 35.00% | ||||||||||||||||
Reclassify the stranded income tax effects from AOCI to retained earnings | $ 18,800,000 | ||||||||||||||||||
Plan asset amortization conditional percentage | 10.00% | ||||||||||||||||||
Debt instrument face amount | 808,750,000 | 812,500,000 | $ 808,750,000 | $ 812,500,000 | |||||||||||||||
Research and development costs | 4,900,000 | 2,400,000 | $ 3,000,000 | ||||||||||||||||
3.5% Senior Notes Due 2026 | |||||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||||
Debt instrument face amount | $ 400,000,000 | 400,000,000 | 400,000,000 | 400,000,000 | 400,000,000 | ||||||||||||||
Debt instrument discount and issuance cost amortization period | 10 years | ||||||||||||||||||
4.375% Senior Notes Due 2022 | |||||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||||
Debt instrument face amount | $ 400,000,000 | 400,000,000 | $ 400,000,000 | $ 400,000,000 | 400,000,000 | ||||||||||||||
Debt instrument discount and issuance cost amortization period | 10 years | ||||||||||||||||||
Selling, Distribution, and Administrative Expense | |||||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||||
Hedge ineffectiveness | 100,000 | ||||||||||||||||||
Trademarks | |||||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||||
Finite-lived intangible asset amortization periods | 40 years | ||||||||||||||||||
Restructuring impairment charges of indefinite intangible assets | 66,200,000 | ||||||||||||||||||
Impairment charge of indefinite intangible assets | $ 15,000,000 | 15,000,000 | |||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||||
Asset impairment charges | $ 3,516,000 | ||||||||||||||||||
Minimum | |||||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||||
Finite-lived intangible asset amortization periods | 2 years | ||||||||||||||||||
Minimum | Capitalized Software Development Costs | |||||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||||
Estimated useful life, years | 3 years | ||||||||||||||||||
Minimum | Trademarks | |||||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||||
Finite-lived intangible asset amortization periods | 30 years | ||||||||||||||||||
Maximum | |||||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||||
Finite-lived intangible asset amortization periods | 40 years | ||||||||||||||||||
Maximum | Capitalized Software Development Costs | |||||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||||
Estimated useful life, years | 8 years | ||||||||||||||||||
Maximum | Trademarks | |||||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||||
Finite-lived intangible asset amortization periods | 40 years | ||||||||||||||||||
Direct Financing To Distributor | Maximum | |||||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||||
Notes receivable maturity period | 10 years | ||||||||||||||||||
Shipping costs | |||||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||||
Shipping costs | $ 975,100,000 | 888,100,000 | 855,100,000 | ||||||||||||||||
DSD Segment | |||||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||||
Sales | 3,340,047,000 | 3,318,563,000 | 3,284,177,000 | ||||||||||||||||
Impairment charge of indefinite intangible assets | 18,500,000 | ||||||||||||||||||
DSD Segment | Bakery Closing | Brattleboro, Vermont | |||||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||||
Impairment charge of long-lived assets held for use | 500,000 | ||||||||||||||||||
DSD Segment | Bakery Closing | Property, Plant and Equipment | Brattleboro, Vermont | |||||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||||
Facility closure cost | 2,500,000 | ||||||||||||||||||
Warehouse Segment | |||||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||||
Sales | $ 611,805,000 | 602,170,000 | $ 642,708,000 | ||||||||||||||||
Warehouse Segment | Facility Closing | |||||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||||
Asset impairment charges | 700,000 | ||||||||||||||||||
Warehouse Segment | Facility Closing | Winston-Salem, North Carolina | |||||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||||
Facility closure cost | 4,400,000 | ||||||||||||||||||
Warehouse Segment | Facility Closing | Winston-Salem, North Carolina | Spare Parts | |||||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||||
Facility closure cost | 200,000 | ||||||||||||||||||
Warehouse Segment | Facility Closing | Property, Plant and Equipment | Winston-Salem, North Carolina | |||||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||||
Asset impairment charges | $ 3,400,000 | ||||||||||||||||||
Customer Concentration Risk | Outstanding Trade Receivables | Wal-Mart/Sam's Club | |||||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||||
Concentration risk percentage | 17.80% | 17.50% | |||||||||||||||||
Customer Concentration Risk | Total year to date sales | Top 10 Customers | |||||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||||
Concentration risk percentage | 50.30% | 48.50% | 46.80% | ||||||||||||||||
Customer Concentration Risk | Total year to date sales | Wal-Mart/Sam's Club | |||||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||||
Concentration risk percentage | 20.30% | 20.00% | 19.60% | ||||||||||||||||
Customer Concentration Risk | Total year to date sales | Wal-Mart/Sam's Club | DSD Segment | |||||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||||
Concentration risk percentage | 17.90% | 17.60% | 17.00% | ||||||||||||||||
Customer Concentration Risk | Total year to date sales | Wal-Mart/Sam's Club | Warehouse Segment | |||||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||||
Concentration risk percentage | 2.40% | 2.40% | 2.60% | ||||||||||||||||
Scan-Based Trading | |||||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||||
Sales | $ 1,700,000,000 | $ 1,400,000,000 | $ 1,300,000,000 | ||||||||||||||||
[1] | As disclosed in Note 4, Financial Statement Revisions, the company reported cash receipts and payments for the repurchase and sale of territories and cash paid at issuance of notes receivable at net when these transactions should have been disaggregated. We concluded that the errors were not material to any of these prior periods that were impacted. The error resulted in an understatement of cash flows from operating activities and cash flows used in investing activities of $5.9 million, $12.1 million and $12.8 million, respectively, for the sixteen, twenty-eight, and forty-week amounts included in the first, second, and third quarters of fiscal 2017, respectively. These amounts were revised upon subsequent presentation of these financial statements. |
Sales by Sales Channel Category
Sales by Sales Channel Category in Each Reportable Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 29, 2018 | Oct. 06, 2018 | [1] | Jul. 14, 2018 | [1] | Dec. 30, 2017 | Oct. 07, 2017 | [1] | Jul. 15, 2017 | [1] | Apr. 21, 2018 | [1] | Apr. 22, 2017 | [1] | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||||||||
Sales | $ 880,667 | $ 923,449 | $ 941,283 | $ 873,623 | $ 932,822 | $ 926,639 | $ 1,206,453 | $ 1,187,649 | $ 3,951,852 | $ 3,920,733 | $ 3,926,885 | ||||||
DSD Segment | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Sales | 3,340,047 | 3,318,563 | 3,284,177 | ||||||||||||||
Warehouse Segment | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Sales | 611,805 | 602,170 | 642,708 | ||||||||||||||
Branded Retail | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Sales | 2,335,831 | 2,303,301 | 2,283,526 | ||||||||||||||
Branded Retail | DSD Segment | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Sales | 2,188,638 | 2,149,451 | 2,114,142 | ||||||||||||||
Branded Retail | Warehouse Segment | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Sales | 147,193 | 153,850 | 169,384 | ||||||||||||||
Store Branded Retail | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Sales | 597,147 | 582,738 | 582,280 | ||||||||||||||
Store Branded Retail | DSD Segment | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Sales | 483,001 | 471,199 | 464,456 | ||||||||||||||
Store Branded Retail | Warehouse Segment | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Sales | 114,146 | 111,539 | 117,824 | ||||||||||||||
Non-Retail and Other | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Sales | 1,018,874 | 1,034,694 | 1,061,079 | ||||||||||||||
Non-Retail and Other | DSD Segment | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Sales | 668,408 | 697,913 | 705,579 | ||||||||||||||
Non-Retail and Other | Warehouse Segment | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Sales | $ 350,466 | $ 336,781 | $ 355,500 | ||||||||||||||
[1] | As disclosed in Note 4, Financial Statement Revisions, the company reported cash receipts and payments for the repurchase and sale of territories and cash paid at issuance of notes receivable at net when these transactions should have been disaggregated. We concluded that the errors were not material to any of these prior periods that were impacted. The error resulted in an understatement of cash flows from operating activities and cash flows used in investing activities of $5.9 million, $12.1 million and $12.8 million, respectively, for the sixteen, twenty-eight, and forty-week amounts included in the first, second, and third quarters of fiscal 2017, respectively. These amounts were revised upon subsequent presentation of these financial statements. |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Charged to Expense | $ 6,963 | $ 4,215 | $ 3,365 |
Allowance for Doubtful Accounts, Current | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning Balance | 3,154 | 1,703 | 1,341 |
Charged to Expense | 6,963 | 4,215 | 3,365 |
Write-Offs and Other | 4,366 | 2,764 | 3,003 |
Ending Balance | $ 5,751 | $ 3,154 | $ 1,703 |
Weighted Percentage of Sales fr
Weighted Percentage of Sales from Largest Customers (Detail) - Customer Concentration Risk - Total year to date sales - Wal-Mart/Sam's Club | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Entity Wide Revenue Major Customer [Line Items] | |||
Concentration risk percentage | 20.30% | 20.00% | 19.60% |
DSD Segment | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Concentration risk percentage | 17.90% | 17.60% | 17.00% |
Warehouse Segment | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Concentration risk percentage | 2.40% | 2.40% | 2.60% |
Activity in Inventory Reserve A
Activity in Inventory Reserve Allowance (Detail) - Inventory Valuation Reserve - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Inventory [Line Items] | |||
Beginning Balance | $ 673 | $ 1,090 | $ 238 |
Charged to Expense | 740 | 1,684 | 1,324 |
Write-Offs and Other | 1,270 | 2,101 | 472 |
Ending Balance | $ 143 | $ 673 | $ 1,090 |
Estimated Useful Lives by Prope
Estimated Useful Lives by Property Plant and Equipment Class (Detail) | 12 Months Ended |
Dec. 29, 2018 | |
Buildings | Minimum | |
Property Plant And Equipment [Line Items] | |
Useful life term (years) | 10 years |
Buildings | Maximum | |
Property Plant And Equipment [Line Items] | |
Useful life term (years) | 40 years |
Machinery and Equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Useful life term (years) | 3 years |
Machinery and Equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Useful life term (years) | 25 years |
Furniture, Fixtures and Transportation Equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Useful life term (years) | 3 years |
Furniture, Fixtures and Transportation Equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Useful life term (years) | 15 years |
Schedule of Depreciation Expens
Schedule of Depreciation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Depreciation [Abstract] | |||
Depreciation expense | $ 118,232 | $ 119,445 | $ 116,367 |
Schedule of Total Impairments a
Schedule of Total Impairments and Line Item Recorded in Our Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | ||
Impairment of assets line item | |||
Impairment of assets | $ 200 | ||
Restructuring and related impairment charges line item | |||
Restructuring and related impairment charges | [1] | 9,767 | $ 104,130 |
Property, Plant and Equipment | |||
Impairment of assets line item | |||
Impairment of assets | 3,516 | ||
Restructuring and related impairment charges line item | |||
Restructuring and related impairment charges | 3,817 | ||
Property, Plant and Equipment | Plant Closings | |||
Restructuring and related impairment charges line item | |||
Restructuring and related impairment charges | 3,156 | ||
Property, Plant and Equipment | Line Closings | |||
Restructuring and related impairment charges line item | |||
Restructuring and related impairment charges | 661 | ||
Property, Plant and Equipment | DSD Segment | |||
Restructuring and related impairment charges line item | |||
Restructuring and related impairment charges | 2,952 | ||
Property, Plant and Equipment | DSD Segment | Plant Closings | |||
Restructuring and related impairment charges line item | |||
Restructuring and related impairment charges | 2,952 | ||
Property, Plant and Equipment | Warehouse Segment | |||
Restructuring and related impairment charges line item | |||
Restructuring and related impairment charges | 865 | ||
Property, Plant and Equipment | Warehouse Segment | Plant Closings | |||
Restructuring and related impairment charges line item | |||
Restructuring and related impairment charges | 204 | ||
Property, Plant and Equipment | Warehouse Segment | Line Closings | |||
Restructuring and related impairment charges line item | |||
Restructuring and related impairment charges | 661 | ||
Property, Plant and Equipment | Unallocated Corporate Costs | |||
Impairment of assets line item | |||
Impairment of assets | $ 3,516 | ||
[1] | Presented on our Consolidated Statements of Income. |
Activity in Deferred Tax Valuat
Activity in Deferred Tax Valuation Allowance (Detail) - Valuation Allowance of Deferred Tax Assets - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Valuation Allowance [Line Items] | |||
Beginning Balance | $ 111 | $ 18 | $ 18 |
Deductions | 0 | 0 | 0 |
Charged to Expense | 253 | 93 | 0 |
Ending Balance | $ 364 | $ 111 | $ 18 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements - Components of Net Periodic Pension and Postretirement Benefits Credit (Detail) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 29, 2018 | [1] | Oct. 06, 2018 | [1],[2] | Jul. 14, 2018 | [1],[2] | Dec. 30, 2017 | [1] | Oct. 07, 2017 | [1],[2] | Jul. 15, 2017 | [1],[2] | Apr. 21, 2018 | [1],[2] | Apr. 22, 2017 | [1],[2] | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||||||||||||||
Materials, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately below) | $ 467,155 | $ 485,680 | $ 488,871 | $ 456,895 | $ 476,264 | $ 468,246 | $ 625,122 | $ 608,068 | $ 2,066,828 | $ 2,009,473 | $ 2,026,859 | ||||||||
Selling, distribution and administrative expenses | 1,507,256 | 1,510,015 | 1,469,382 | ||||||||||||||||
Income (Loss) from operations | 212,344 | 161,003 | 264,898 | ||||||||||||||||
Other components of net periodic pension and postretirement benefits credit | $ (529) | (6,558) | (5,638) | ||||||||||||||||
As reported | |||||||||||||||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||||||||||||||
Materials, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately below) | 2,009,063 | 2,026,367 | |||||||||||||||||
Selling, distribution and administrative expenses | 1,503,867 | 1,464,236 | |||||||||||||||||
Income (Loss) from operations | $ 162,912 | $ 263,890 | |||||||||||||||||
[1] | The company does not report gross margin. This line item presents our material, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately) under an alternative presentation. | ||||||||||||||||||
[2] | As disclosed in Note 4, Financial Statement Revisions, the company reported cash receipts and payments for the repurchase and sale of territories and cash paid at issuance of notes receivable at net when these transactions should have been disaggregated. We concluded that the errors were not material to any of these prior periods that were impacted. The error resulted in an understatement of cash flows from operating activities and cash flows used in investing activities of $5.9 million, $12.1 million and $12.8 million, respectively, for the sixteen, twenty-eight, and forty-week amounts included in the first, second, and third quarters of fiscal 2017, respectively. These amounts were revised upon subsequent presentation of these financial statements. |
Recent Accounting Pronounceme_4
Recent Accounting Pronouncements - Summary of Reclassification of Tax Effects to Retained Earnings from AOCI (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Pension and postretirement plans | $ 8,474 | $ (897) | $ 2,238 | |
Retained Earnings | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Pension and postretirement plans | $ (17,097) | |||
Hedged financial instruments | (1,709) | |||
Total reclassifications of stranded income tax effects to retained earnings from AOCI | (18,806) | |||
AOCI | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Pension and postretirement plans | 17,097 | |||
Hedged financial instruments | 1,709 | |||
Total reclassifications of stranded income tax effects to retained earnings from AOCI | $ 18,806 |
Recent Accounting Pronounceme_5
Recent Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2016 | Dec. 29, 2018 | Dec. 30, 2017 | |
Accounting Changes And Error Corrections [Abstract] | |||
Operating lease, right-of-use asset | $ 405,000 | ||
Operating lease, liability | 430,000 | ||
Operating leases, expense | $ 97,357 | $ 90,660 | $ 95,014 |
Revisions to Applicable Consoli
Revisions to Applicable Consolidated Statements of Cash Flows Line Item to Correct the Errors (Detail) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||
Oct. 07, 2017 | Jul. 15, 2017 | Apr. 22, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | ||
Error Corrections And Prior Period Adjustments Restatement [Line Items] | |||||||
Other reconciling items to net income | $ (106) | ||||||
Other assets | $ 5,120 | $ (12,557) | (3,441) | ||||
Other accrued liabilities | (70,733) | 42,770 | 11,390 | ||||
Net cash provided by operating activities | 295,893 | 297,389 | 356,562 | ||||
Repurchase of independent distributor territories | (3,128) | (6,460) | (8,871) | ||||
Cash paid at issuance of notes receivable | (28,454) | (25,566) | (8,577) | ||||
Other investing activities | 577 | 1,823 | 2,522 | ||||
Net cash disbursed for investing activities | $ (301,805) | $ (35,395) | (76,714) | ||||
Impact Of Adopting New Guidance | |||||||
Error Corrections And Prior Period Adjustments Restatement [Line Items] | |||||||
Other reconciling items to net income | [1] | 3,851 | |||||
Net cash provided by operating activities | [1] | 3,851 | |||||
As reported | |||||||
Error Corrections And Prior Period Adjustments Restatement [Line Items] | |||||||
Other reconciling items to net income | (3,957) | ||||||
Other assets | (11,107) | ||||||
Other accrued liabilities | 12,389 | ||||||
Net cash provided by operating activities | 346,044 | ||||||
Repurchase of independent distributor territories | (10,350) | ||||||
Other investing activities | 2,091 | ||||||
Net cash disbursed for investing activities | (70,047) | ||||||
Revisions | |||||||
Error Corrections And Prior Period Adjustments Restatement [Line Items] | |||||||
Other assets | 7,666 | ||||||
Other accrued liabilities | (999) | ||||||
Net cash provided by operating activities | $ (12,800) | $ (12,100) | $ (5,900) | 6,667 | |||
Repurchase of independent distributor territories | 1,479 | ||||||
Cash paid at issuance of notes receivable | (8,577) | ||||||
Other investing activities | 431 | ||||||
Net cash disbursed for investing activities | $ (12,800) | $ (12,100) | $ (5,900) | $ (6,667) | |||
[1] | The table above includes the impact of adopting new share-based payment guidance discussed in Note 3, Recent Accounting Pronouncements. |
Loss on Inferior Ingredients -
Loss on Inferior Ingredients - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Oct. 06, 2018 | Dec. 31, 2019 | Dec. 29, 2018 | |
Loss On Inferior Ingredients [Line Items] | |||
Cash recovered from suppliers on disruption | $ 4,200 | $ 4,156 | |
Scenario Forecast | |||
Loss On Inferior Ingredients [Line Items] | |||
Cash recovered from suppliers on disruption | $ 1,300 |
Summary of Total Costs and Reco
Summary of Total Costs and Recoveries (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 29, 2018 | Oct. 06, 2018 | Jul. 14, 2018 | Dec. 29, 2018 | |
Loss On Inferior Ingredients [Line Items] | ||||
Expense recognized during fiscal 2018 | $ 7,368 | |||
Recoveries recognized during fiscal 2018 | $ (4,200) | (4,156) | ||
Total loss on ingredients | $ 1,219 | $ (1,891) | $ 3,884 | 3,212 |
DSD Segment | ||||
Loss On Inferior Ingredients [Line Items] | ||||
Expense recognized during fiscal 2018 | 5,811 | |||
Recoveries recognized during fiscal 2018 | (4,156) | |||
Total loss on ingredients | 1,655 | |||
Warehouse Segment | ||||
Loss On Inferior Ingredients [Line Items] | ||||
Expense recognized during fiscal 2018 | 1,557 | |||
Total loss on ingredients | $ 1,557 |
Summary of Currently Identifiab
Summary of Currently Identifiable and Measurable Costs Reclassified in Consolidated Statements of Income by Segment Related to Production and Distribution Disruptions (Detail) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 29, 2018 | [1] | Oct. 06, 2018 | [1],[2] | Jul. 14, 2018 | [1],[2] | Dec. 30, 2017 | [1] | Oct. 07, 2017 | [1],[2] | Jul. 15, 2017 | [1],[2] | Apr. 21, 2018 | [1],[2] | Apr. 22, 2017 | [1],[2] | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Loss On Inferior Ingredients [Line Items] | |||||||||||||||||||
Materials, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately) | $ 467,155 | $ 485,680 | $ 488,871 | $ 456,895 | $ 476,264 | $ 468,246 | $ 625,122 | $ 608,068 | $ 2,066,828 | $ 2,009,473 | $ 2,026,859 | ||||||||
Selling, distribution and administrative expenses | 1,507,256 | $ 1,510,015 | $ 1,469,382 | ||||||||||||||||
DSD Segment | |||||||||||||||||||
Loss On Inferior Ingredients [Line Items] | |||||||||||||||||||
Materials, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately) | 951 | ||||||||||||||||||
Selling, distribution and administrative expenses | 704 | ||||||||||||||||||
Warehouse Segment | |||||||||||||||||||
Loss On Inferior Ingredients [Line Items] | |||||||||||||||||||
Materials, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately) | 1,557 | ||||||||||||||||||
DSD and Warehouse Segment | |||||||||||||||||||
Loss On Inferior Ingredients [Line Items] | |||||||||||||||||||
Materials, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately) | 2,508 | ||||||||||||||||||
Selling, distribution and administrative expenses | $ 704 | ||||||||||||||||||
[1] | The company does not report gross margin. This line item presents our material, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately) under an alternative presentation. | ||||||||||||||||||
[2] | As disclosed in Note 4, Financial Statement Revisions, the company reported cash receipts and payments for the repurchase and sale of territories and cash paid at issuance of notes receivable at net when these transactions should have been disaggregated. We concluded that the errors were not material to any of these prior periods that were impacted. The error resulted in an understatement of cash flows from operating activities and cash flows used in investing activities of $5.9 million, $12.1 million and $12.8 million, respectively, for the sixteen, twenty-eight, and forty-week amounts included in the first, second, and third quarters of fiscal 2017, respectively. These amounts were revised upon subsequent presentation of these financial statements. |
Restructuring Activities - Addi
Restructuring Activities - Additional Information (Detail) $ in Thousands | Sep. 25, 2017Employee | Sep. 07, 2017 | Aug. 09, 2017 | Jul. 17, 2017 | May 03, 2017BusinessUnit | Dec. 29, 2018USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Restructuring Cost And Reserve [Line Items] | ||||||||||
Number of new organizational structure business units established | BusinessUnit | 2 | |||||||||
Restructuring and related impairment charges | [1] | $ 9,767 | $ 104,130 | |||||||
Impairment charge of long-lived assets held for use | 7,300 | $ 9,900 | ||||||||
Property plant and equipment impairment | 200 | |||||||||
Severance costs | 2,000 | |||||||||
Property, Plant and Equipment | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Restructuring and related impairment charges | 3,817 | |||||||||
Property plant and equipment impairment | 3,516 | |||||||||
Property, Plant and Equipment | DSD Segment | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Restructuring and related impairment charges | 2,952 | |||||||||
Property, Plant and Equipment | Warehouse Segment | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Restructuring and related impairment charges | 865 | |||||||||
Reorganization Costs | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Restructuring and related impairment charges | [1] | $ 4,209 | 1,925 | |||||||
Bakery Closing | DSD Segment | Brattleboro, Vermont | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Impairment charge of long-lived assets held for use | $ 500 | |||||||||
Bakery Closing | Property, Plant and Equipment | DSD Segment | Brattleboro, Vermont | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Facility closure cost | 2,500 | |||||||||
Facility Closing | Warehouse Segment | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Property plant and equipment impairment | 700 | |||||||||
Facility Closing | Warehouse Segment | Winston-Salem, North Carolina | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Facility closure cost | 4,400 | |||||||||
Closure of operations, description | On August 9, 2017, the company announced the closure of a Warehouse Segment snack cake plant in Winston-Salem, North Carolina. The bakery will close in November 2017. The closure costs were $4.4 million and consisted of $3.4 million for property, plant and equipment impairments and $1.0 million for employee termination benefits. These amounts are recorded in the restructuring and related impairment charges line item on our Consolidated Statements of Income. | |||||||||
Closing date of bakery | Nov. 30, 2017 | |||||||||
Employee termination benefits | 1,000 | |||||||||
Facility Closing | Warehouse Segment | Winston-Salem, North Carolina | Spare Parts | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Facility closure cost | $ 200 | |||||||||
Facility Closing | Property, Plant and Equipment | Warehouse Segment | Winston-Salem, North Carolina | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Property plant and equipment impairment | 3,400 | |||||||||
Launch of Project Centennial | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Restructuring activities, expected completion year | 2,021 | |||||||||
Packaging impairment charge | $ 1,500 | |||||||||
Launch of Project Centennial | Reduce Costs to Fuel Growth | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Non-restructuring consulting costs | $ 9,700 | 37,300 | $ 6,300 | |||||||
Launch of Project Centennial | Develop Leading Capabilities | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Number of new organizational structure business units established | BusinessUnit | 2 | |||||||||
Full implementation expected to be completed period | beginning of fiscal 2019. | |||||||||
Launch of Project Centennial | Employee Severance | Voluntary Employee Separation Incentive Plan | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Voluntary employee separation incentive plan commencement date | Jul. 17, 2017 | |||||||||
Election period closing date | Sep. 25, 2017 | |||||||||
Approximate number of employees accepted offer | Employee | 325 | |||||||||
Separations beginning date | Sep. 7, 2017 | |||||||||
Restructuring charge paid | $ 24,200 | 4,600 | ||||||||
Launch of Project Centennial | Employee Severance | Restructuring Charges | Voluntary Employee Separation Incentive Plan | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Aggregate employee separation charge | $ 29,700 | |||||||||
Credit included in aggregate employee separation charge | 600 | |||||||||
Launch of Project Centennial | Reinvigorate Core Business | Restructuring Charges | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Impairment charges of trademark assets | $ 66,200 | |||||||||
[1] | Presented on our Consolidated Statements of Income. |
Schedule of Restructuring Impai
Schedule of Restructuring Impairments Recognized by Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | ||
Restructuring Cost And Reserve [Line Items] | |||
Total impairment of assets | [1] | $ 9,767 | $ 104,130 |
Impairment of Assets | |||
Restructuring Cost And Reserve [Line Items] | |||
Total impairment of assets | 5,593 | ||
Impairment of Assets | Plant Closure Costs | |||
Restructuring Cost And Reserve [Line Items] | |||
Total impairment of assets | 3,337 | ||
Impairment of Assets | Line Closure costs | |||
Restructuring Cost And Reserve [Line Items] | |||
Total impairment of assets | 718 | ||
Impairment of Assets | Product Rationalization Costs | |||
Restructuring Cost And Reserve [Line Items] | |||
Total impairment of assets | 1,538 | ||
Impairment of Assets | DSD Segment | |||
Restructuring Cost And Reserve [Line Items] | |||
Total impairment of assets | 4,288 | ||
Impairment of Assets | DSD Segment | Plant Closure Costs | |||
Restructuring Cost And Reserve [Line Items] | |||
Total impairment of assets | 3,133 | ||
Impairment of Assets | DSD Segment | Product Rationalization Costs | |||
Restructuring Cost And Reserve [Line Items] | |||
Total impairment of assets | 1,155 | ||
Impairment of Assets | Warehouse Segment | |||
Restructuring Cost And Reserve [Line Items] | |||
Total impairment of assets | 1,305 | ||
Impairment of Assets | Warehouse Segment | Plant Closure Costs | |||
Restructuring Cost And Reserve [Line Items] | |||
Total impairment of assets | 204 | ||
Impairment of Assets | Warehouse Segment | Line Closure costs | |||
Restructuring Cost And Reserve [Line Items] | |||
Total impairment of assets | 718 | ||
Impairment of Assets | Warehouse Segment | Product Rationalization Costs | |||
Restructuring Cost And Reserve [Line Items] | |||
Total impairment of assets | $ 383 | ||
[1] | Presented on our Consolidated Statements of Income. |
Components of Costs Associated
Components of Costs Associated with Project Centennial (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | ||
Restructuring and related impairment charges: | |||
Restructuring and related impairment charges | [1] | $ 9,767 | $ 104,130 |
Restructuring and related impairment charges | 9,767 | 104,130 | |
Project Centennial implementation costs | [2] | 9,723 | 37,306 |
Total Project Centennial restructuring and implementation costs | 19,490 | 141,436 | |
Reorganization Costs | |||
Restructuring and related impairment charges: | |||
Restructuring and related impairment charges | [1] | 4,209 | 1,925 |
Impairment of Assets | |||
Restructuring and related impairment charges: | |||
Restructuring and related impairment charges | 5,593 | ||
Restructuring and related impairment charges | [1] | 5,593 | 69,601 |
Employee Termination Benefits | |||
Restructuring and related impairment charges: | |||
Restructuring and related impairment charges | [1] | 571 | 2,939 |
VSIP | |||
Restructuring and related impairment charges: | |||
Restructuring and related impairment charges | [1] | $ (606) | $ 29,665 |
[1] | Presented on our Consolidated Statements of Income. | ||
[2] | Costs are recorded in the selling, distribution, and administrative expenses line item of our Consolidated Statements of Income. |
Components of, and Changes in R
Components of, and Changes in Restructuring Accruals (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | ||
Restructuring Cost And Reserve [Line Items] | |||
Liability balance, beginning balance | [1] | $ 25,490 | |
Charges | 4,174 | $ 34,529 | |
Cash payments | (29,263) | (9,039) | |
Liability balance, ending balance | [1] | 401 | 25,490 |
Reorganization Costs | |||
Restructuring Cost And Reserve [Line Items] | |||
Charges | [2] | 4,209 | 1,925 |
Cash payments | [2] | (4,209) | (1,925) |
Employee Termination Benefits | |||
Restructuring Cost And Reserve [Line Items] | |||
Liability balance, beginning balance | [1],[3] | 468 | |
Charges | [3] | 571 | 2,939 |
Cash payments | [3] | (812) | (2,471) |
Liability balance, ending balance | [1],[3] | 227 | 468 |
VSIP | |||
Restructuring Cost And Reserve [Line Items] | |||
Liability balance, beginning balance | [1] | 25,022 | |
Charges | (606) | 29,665 | |
Cash payments | (24,242) | (4,643) | |
Liability balance, ending balance | [1] | $ 174 | $ 25,022 |
[1] | Recorded in the other accrued current liabilities line item of our Consolidated Balance Sheets. | ||
[2] | Reorganization costs include employee relocation expenses. | ||
[3] | Employee termination benefits not related to the VSIP. |
Divestiture - Additional Inform
Divestiture - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 14, 2017 | Apr. 22, 2017 | Dec. 30, 2017 |
Business Combinations [Abstract] | |||
Date of business unit sold | Jan. 14, 2017 | ||
Sale of non-core mix manufacturing business | $ 44,000 | ||
Decrease in amount by working capital adjustment | 2,800 | ||
Gain on sale of business | 28,875 | $ 28,875 | $ 28,875 |
Net proceeds from divestiture of business | $ 41,200 | $ 41,230 |
Computation of Gain on Divestit
Computation of Gain on Divestiture (Detail) - USD ($) $ in Thousands | Jan. 14, 2017 | Apr. 22, 2017 | Dec. 30, 2017 | Dec. 29, 2018 | Dec. 31, 2016 |
Business Combinations [Abstract] | |||||
Cash consideration received | $ 41,230 | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed by buyer: | |||||
Property, plant, and equipment recorded as assets held for sale | 3,824 | ||||
Goodwill | 801 | $ 464,777 | $ 545,379 | $ 465,578 | |
Financial assets | 7,730 | ||||
Net derecognized amounts of identifiable assets sold | 12,355 | ||||
Gain on divestiture | $ 28,875 | $ 28,875 | $ 28,875 |
Notes Receivable from IDPs - Ad
Notes Receivable from IDPs - Additional Information (Detail) | 12 Months Ended |
Dec. 29, 2018 | |
Maximum | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Financing period of distribution rights, years | 10 years |
Interest Income Related to Note
Interest Income Related to Notes Receivable (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Receivables [Abstract] | |||
Interest income | $ 27,755 | $ 22,938 | $ 20,552 |
Assets Held for Sale - Addition
Assets Held for Sale - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2016USD ($) | Dec. 29, 2018USD ($)Facility | |
Long Lived Assets Held For Sale [Line Items] | ||
Impairment of Long-Lived Assets Held-for-Sale | $ 5.3 | |
Tulsa, Oklahoma Plant | ||
Long Lived Assets Held For Sale [Line Items] | ||
Impairment of Long-Lived Assets Held-for-Sale | $ 0.5 | |
Acquired Hostess Bread Assets Classified as Held for Sale | ||
Long Lived Assets Held For Sale [Line Items] | ||
Impairment of Long-Lived Assets Held-for-Sale | $ 4.6 | |
Acquired Hostess Bread Assets Plants and Depots | Plants | ||
Long Lived Assets Held For Sale [Line Items] | ||
Number of Acquired Hostess Bread Assets to be sold | Facility | 20 | |
Acquired Hostess Bread Assets Plants and Depots | Depots | ||
Long Lived Assets Held For Sale [Line Items] | ||
Number of Acquired Hostess Bread Assets to be sold | Facility | 36 |
Proceeds from Sale of Acquired
Proceeds from Sale of Acquired Hostess Bread Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Acquired Hostess Bread Assets Plants | |||
Long Lived Assets Held For Sale [Line Items] | |||
Proceeds from sale of Acquired Hostess Bread Assets | $ 667 | $ 6,848 | $ 9,079 |
Assets Held for Sale (Detail)
Assets Held for Sale (Detail) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Long Lived Assets Held For Sale [Line Items] | ||
Total assets held for sale | $ 6,606 | $ 15,323 |
Distribution Rights | ||
Long Lived Assets Held For Sale [Line Items] | ||
Total assets held for sale | 3,188 | 13,584 |
Acquired Hostess Bread Assets Plants and Depots | ||
Long Lived Assets Held For Sale [Line Items] | ||
Total assets held for sale | 2,360 | 479 |
Other | ||
Long Lived Assets Held For Sale [Line Items] | ||
Total assets held for sale | $ 1,058 | $ 1,260 |
Summary of Goodwill and Other I
Summary of Goodwill and Other Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 | Jan. 14, 2017 | Dec. 31, 2016 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Goodwill | $ 545,379 | $ 464,777 | $ 801 | $ 465,578 |
Amortizable intangible assets, net of amortization | 588,329 | 535,842 | ||
Indefinite-lived intangible assets | 206,600 | 206,600 | ||
Total goodwill and other intangible assets | $ 1,340,308 | $ 1,207,219 |
Carrying Amount of Goodwill by
Carrying Amount of Goodwill by Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Goodwill [Line Items] | ||
Beginning balance | $ 464,777 | $ 465,578 |
Change in goodwill related to acquisition | 80,602 | |
Change in goodwill related to divestiture | (801) | |
Ending balance | 545,379 | 464,777 |
DSD Segment | ||
Goodwill [Line Items] | ||
Beginning balance | 424,563 | 424,563 |
Change in goodwill related to acquisition | 57,056 | |
Ending balance | 481,619 | 424,563 |
Warehouse Segment | ||
Goodwill [Line Items] | ||
Beginning balance | 40,214 | 41,015 |
Change in goodwill related to acquisition | 23,546 | |
Change in goodwill related to divestiture | (801) | |
Ending balance | $ 63,760 | $ 40,214 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Detail) | 12 Months Ended | ||
Dec. 29, 2018USD ($)Trademark | Dec. 30, 2017USD ($)BusinessUnitTradeMarkAsset | Dec. 31, 2016USD ($) | |
Goodwill And Intangible Assets Disclosure [Line Items] | |||
Goodwill impaired | $ 0 | $ 0 | $ 0 |
Additional indefinite lived intangible assets separately identified from goodwill | 206,600,000 | 206,600,000 | |
Recognized intangible asset impairments | $ 66,247,000 | ||
Number of brands impaired | BusinessUnit | 6 | ||
Finite-lived intangible asset, estimated useful life | 30 years | ||
Impairment charge of indefinite intangible assets | $ 18,500,000 | ||
Fair value of trademarks | $ 156,000,000 | ||
Number of indefinite lived Trademarks impaired | Trademark | 3 | ||
Indefinite-Lived Trademark Asset | |||
Goodwill And Intangible Assets Disclosure [Line Items] | |||
Number of indefinite-lived trademark assets compared by fair value of the brand and its carrying value | TradeMarkAsset | 1 | ||
Finite-Lived Trademark Assets | |||
Goodwill And Intangible Assets Disclosure [Line Items] | |||
Number of finite-lived trademark assets tested using an undiscounted cash flow test | TradeMarkAsset | 3 | ||
Trademarks | |||
Goodwill And Intangible Assets Disclosure [Line Items] | |||
Additional indefinite lived intangible assets separately identified from goodwill | $ 171,000,000 | ||
Finite-lived intangible asset, estimated useful life | 40 years | ||
Impairment charge of indefinite intangible assets | $ 15,000,000 | $ 15,000,000 |
Amortizable Intangible Assets (
Amortizable Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 740,390 | $ 662,010 |
Accumulated Amortization | 152,061 | 126,168 |
Net Value | 588,329 | 535,842 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 413,092 | 371,392 |
Accumulated Amortization | 44,711 | 34,716 |
Net Value | 368,381 | 336,676 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 318,021 | 281,621 |
Accumulated Amortization | 99,904 | 84,280 |
Net Value | 218,117 | 197,341 |
Non-Compete Agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 5,154 | 4,874 |
Accumulated Amortization | 4,874 | 4,874 |
Net Value | 280 | |
Distribution Rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 4,123 | 4,123 |
Accumulated Amortization | 2,572 | 2,298 |
Net Value | $ 1,551 | $ 1,825 |
Schedule of Restructuring Imp_2
Schedule of Restructuring Impairments Charges by Segment (Detail) $ in Thousands | 12 Months Ended |
Dec. 30, 2017USD ($) | |
Indefinite Lived Intangible Assets By Major Class [Line Items] | |
Indefinite-lived intangible assets | $ 18,500 |
Finite-lived intangible assets | 47,747 |
Restructuring impairment charges | 66,247 |
DSD Segment | |
Indefinite Lived Intangible Assets By Major Class [Line Items] | |
Indefinite-lived intangible assets | 18,500 |
Finite-lived intangible assets | 36,612 |
Restructuring impairment charges | 55,112 |
Warehouse Segment | |
Indefinite Lived Intangible Assets By Major Class [Line Items] | |
Finite-lived intangible assets | 11,135 |
Restructuring impairment charges | $ 11,135 |
Amortization Expense (Detail)
Amortization Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 25,892 | $ 27,274 | $ 24,502 |
Estimated Net Amortization of I
Estimated Net Amortization of Intangibles (Detail) $ in Thousands | Dec. 29, 2018USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2,019 | $ 29,210 |
2,020 | 28,606 |
2,021 | 27,893 |
2,022 | 27,189 |
2,023 | $ 26,309 |
Acquisition (Canyon Bakehouse L
Acquisition (Canyon Bakehouse LLC) - Additional Information (Detail) $ in Thousands | Dec. 14, 2018USD ($) | Dec. 29, 2018USD ($)Segment | Dec. 30, 2017USD ($) | Jan. 14, 2017USD ($) | Dec. 31, 2016USD ($) |
Business Acquisition [Line Items] | |||||
Goodwill | $ 545,379 | $ 464,777 | $ 801 | $ 465,578 | |
Number of business segments | Segment | 2 | ||||
DSD Segment | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 481,619 | 424,563 | 424,563 | ||
Warehouse Segment | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 63,760 | $ 40,214 | $ 41,015 | ||
Canyon Bakehouse LLC | |||||
Business Acquisition [Line Items] | |||||
Percentage of outstanding membership interests acquired | 100.00% | ||||
Date of acquisition | Dec. 14, 2018 | ||||
Business acquisition, description | On December 14, 2018, the company completed the acquisition of 100% of the outstanding membership interests of Canyon, a leading gluten-free bread baker, from its members for total consideration of $205.2 million, including a $5.0 million earn-out recorded as contingent consideration. We believe the acquisition of Canyon strengthens our position as the second-largest baker in the U.S. by giving us access to the fast-growing gluten-free bread category. The acquisition has been accounted for as a business combination and the assets have been assigned to our DSD Segment and Warehouse Segment. Canyon’s sales and results of operations were immaterial for fiscal 2018. The total goodwill recorded for this acquisition was $80.6 million and it is deductible for tax purposes. | ||||
Total consideration paid | $ 205,207 | ||||
Business acquisition, earn-out contingent consideration | 5,000 | ||||
Goodwill acquired | 80,600 | ||||
Acquisition-related costs | $ 4,500 | ||||
Fair value of trade receivable | 3,600 | ||||
Gross amount receivables | 3,700 | ||||
Uncollectible receivables amount | $ 100 | ||||
Goodwill | $ 80,602 | ||||
Number of business segments | Segment | 2 | ||||
Canyon Bakehouse LLC | DSD Segment | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 57,100 | ||||
Canyon Bakehouse LLC | Warehouse Segment | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 23,500 |
Summary of Consideration Paid B
Summary of Consideration Paid Based on the Fair Value at the Acquisition Date (Detail) - USD ($) $ in Thousands | Dec. 14, 2018 | Dec. 29, 2018 | Dec. 30, 2017 | Jan. 14, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||||
Property, plant, and equipment | $ 3,824 | ||||
Financial assets | 7,730 | ||||
Goodwill | $ 545,379 | $ 464,777 | $ 801 | $ 465,578 | |
Canyon Bakehouse LLC | |||||
Business Acquisition [Line Items] | |||||
Cash consideration paid | $ 200,208 | ||||
Working capital adjustments | 299 | ||||
Contingent consideration | 4,700 | ||||
Total consideration | 205,207 | ||||
Property, plant, and equipment | 42,128 | ||||
Identifiable intangible assets | 78,380 | ||||
Financial assets | 4,097 | ||||
Net recognized amounts of identifiable assets acquired | 124,605 | ||||
Goodwill | $ 80,602 |
Schedule of Intangible Assets S
Schedule of Intangible Assets Subject to Amortization (Detail) - Canyon Bakehouse LLC $ in Thousands | 12 Months Ended |
Dec. 29, 2018USD ($) | |
Finite And Infinite Lived Intangible Assets [Line Items] | |
Acquired intangible assets subject to amortization | $ 78,380 |
Weighted average amortization years | 32 years 10 months 24 days |
Trademarks | |
Finite And Infinite Lived Intangible Assets [Line Items] | |
Acquired intangible assets subject to amortization | $ 41,700 |
Weighted average amortization years | 40 years |
Attribution Method | Straight-line |
Customer Relationships | |
Finite And Infinite Lived Intangible Assets [Line Items] | |
Acquired intangible assets subject to amortization | $ 36,400 |
Weighted average amortization years | 25 years |
Attribution Method | Sum of year digits |
Non-Compete Agreements | |
Finite And Infinite Lived Intangible Assets [Line Items] | |
Acquired intangible assets subject to amortization | $ 280 |
Weighted average amortization years | 1 year 8 months 12 days |
Attribution Method | Straight-line |
Net Fair Value of Commodity Pri
Net Fair Value of Commodity Price Risk (Detail) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Assets | $ 501 | $ 291 |
Liabilities | (8,935) | (10,886) |
Net Fair Value | (8,434) | (10,595) |
Level 1 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Assets | 501 | 291 |
Liabilities | (8,935) | (10,886) |
Net Fair Value | (8,434) | (10,595) |
Other Current Assets | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Assets | 501 | 259 |
Other Current Assets | Level 1 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Assets | 501 | 259 |
Other LongTerm Assets | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Assets | 32 | |
Other LongTerm Assets | Level 1 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Assets | 32 | |
Other Current Liabilities | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Liabilities | (7,732) | (10,247) |
Other Current Liabilities | Level 1 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Liabilities | (7,732) | (10,247) |
Other LongTerm Liabilities | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Liabilities | (1,203) | (639) |
Other LongTerm Liabilities | Level 1 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Liabilities | $ (1,203) | $ (639) |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | Aug. 08, 2016 | Aug. 05, 2016 | Dec. 31, 2016 | Dec. 29, 2018 | Dec. 30, 2017 |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Cash settlement on hedge | $ 1,000 | $ 1,000 | |||
Derivative instrument, asset | $ 15,408 | $ 16,324 | |||
Selling, Distribution, and Administrative Expense | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Hedge ineffectiveness | $ 100 |
Derivative Held for Hedging the
Derivative Held for Hedging the Risk of Changes in Forecasted Interest Payments on Issuance of Long-term Debt (Details) - USD ($) | Aug. 08, 2016 | Aug. 05, 2016 | Dec. 29, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Fair Value Deferred in AOCI | $ 1,000,000 | $ 1,000,000 | ||
April/2012 | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Terminated | 2012-04 | |||
Description | Treasury lock | |||
Aggregate Notional Amount | $ 500,000,000 | |||
Fair Value When Terminated | (3,137,000) | |||
Fair Value Deferred in AOCI | [1] | 2,510,000 | ||
Ineffective Portion at Termination | $ 627,000 | |||
September/2016 | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Terminated | 2016-09 | |||
Description | Treasury lock | |||
Aggregate Notional Amount | $ 200,000,000 | |||
Fair Value When Terminated | 1,298,000 | |||
Fair Value Deferred in AOCI | [1] | $ (1,298,000) | ||
September/2016 | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Terminated | 2016-09 | |||
Description | Treasury lock | |||
Aggregate Notional Amount | $ 150,000,000 | |||
Fair Value When Terminated | (323,000) | |||
Fair Value Deferred in AOCI | [1] | 215,000 | ||
Ineffective Portion at Termination | $ 108,000 | |||
[1] | The amount reported in AOCI will be reclassified to interest expense as interest payments are made on the related notes. |
Derivative Instruments Recorded
Derivative Instruments Recorded on Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Assets | $ 501 | $ 291 |
Derivative Liabilities | 8,935 | 10,886 |
Commodity Contract | Other Current Assets | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Assets | 501 | 259 |
Commodity Contract | Other LongTerm Assets | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Assets | 32 | |
Commodity Contract | Other Current Liabilities | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Liabilities | 7,732 | 10,247 |
Commodity Contract | Other LongTerm Liabilities | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Liabilities | $ 1,203 | $ 639 |
Effect of Derivative Instrument
Effect of Derivative Instruments for Deferred Gains And (Losses) on Closed Contracts and Effective Portion in Fair Value on AOCI, Utilized for Risk Management Purposes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 29, 2018 | [1] | Oct. 06, 2018 | [1],[2] | Jul. 14, 2018 | [1],[2] | Dec. 30, 2017 | [1] | Oct. 07, 2017 | [1],[2] | Jul. 15, 2017 | [1],[2] | Apr. 21, 2018 | [1],[2] | Apr. 22, 2017 | [1],[2] | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||||||||||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) (Net of tax) | $ 2,978 | $ (6,789) | $ 5,730 | |||||||||||||||||
Production costs | $ 467,155 | $ 485,680 | $ 488,871 | $ 456,895 | $ 476,264 | $ 468,246 | $ 625,122 | $ 608,068 | 2,066,828 | 2,009,473 | 2,026,859 | |||||||||
Income before income taxes | 197,161 | 149,293 | 249,537 | |||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | ||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||||||||||
Income before income taxes | 1,079 | 1,367 | 3,399 | |||||||||||||||||
Interest Rate Contracts | ||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||||||||||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) (Net of tax) | 666 | |||||||||||||||||||
Interest Rate Contracts | Reclassification out of Accumulated Other Comprehensive Income | ||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||||||||||
Interest expense (income) | 107 | 88 | 135 | |||||||||||||||||
Commodity Contract | ||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||||||||||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) (Net of tax) | 2,978 | (6,789) | 5,064 | |||||||||||||||||
Commodity Contract | Reclassification out of Accumulated Other Comprehensive Income | ||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||||||||||
Production costs | [3] | $ 972 | $ 1,279 | $ 3,264 | ||||||||||||||||
[1] | The company does not report gross margin. This line item presents our material, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately) under an alternative presentation. | |||||||||||||||||||
[2] | As disclosed in Note 4, Financial Statement Revisions, the company reported cash receipts and payments for the repurchase and sale of territories and cash paid at issuance of notes receivable at net when these transactions should have been disaggregated. We concluded that the errors were not material to any of these prior periods that were impacted. The error resulted in an understatement of cash flows from operating activities and cash flows used in investing activities of $5.9 million, $12.1 million and $12.8 million, respectively, for the sixteen, twenty-eight, and forty-week amounts included in the first, second, and third quarters of fiscal 2017, respectively. These amounts were revised upon subsequent presentation of these financial statements. | |||||||||||||||||||
[3] | Included in Materials, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately). |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Income) Related to Derivative Transactions (Detail) $ in Thousands | 12 Months Ended |
Dec. 29, 2018USD ($) | |
Closed Contracts | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Estimated amount of derivatives to be reclassified in income from AOCI | $ (2,168) |
Closed Contracts | Commodity price risk derivatives | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Estimated amount of derivatives to be reclassified in income from AOCI | (2,153) |
Closed Contracts | Interest rate risk derivatives | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Estimated amount of derivatives to be reclassified in income from AOCI | (15) |
Expiring in 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Net change in fair value of derivatives | 5,405 |
Expiring in 2019 | Commodity price risk derivatives | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Net change in fair value of derivatives | 5,405 |
Expiring in 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Net change in fair value of derivatives | 782 |
Expiring in 2020 | Commodity price risk derivatives | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Net change in fair value of derivatives | 782 |
Expiring in 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Net change in fair value of derivatives | 112 |
Expiring in 2021 | Commodity price risk derivatives | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Net change in fair value of derivatives | 112 |
Expiring in 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Net change in fair value of derivatives | 6 |
Expiring in 2022 | Commodity price risk derivatives | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Net change in fair value of derivatives | 6 |
Closed or Expiring Over Next Four Years | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Net change in fair value of derivatives | 4,137 |
Closed or Expiring Over Next Four Years | Commodity price risk derivatives | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Net change in fair value of derivatives | 4,152 |
Closed or Expiring Over Next Four Years | Interest rate risk derivatives | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Net change in fair value of derivatives | $ (15) |
Financial Contracts Hedging Com
Financial Contracts Hedging Commodity Risks (Detail) - Cash Flow Hedging $ in Thousands | Dec. 29, 2018USD ($) |
Derivative Instruments, Gain (Loss) [Line Items] | |
Aggregate Notional Amount | $ 170,884 |
Wheat Contracts | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Aggregate Notional Amount | 122,946 |
Soybean Oil Contracts | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Aggregate Notional Amount | 20,372 |
Corn Contracts | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Aggregate Notional Amount | 10,570 |
Natural Gas Contracts | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Aggregate Notional Amount | $ 16,996 |
Components of Other Current Ass
Components of Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Prepaid assets | $ 22,286 | $ 22,154 |
Fair value of derivative instruments | 501 | 259 |
Collateral to counterparties for derivative positions | 15,408 | 16,324 |
Income taxes receivable | 3,917 | 10,133 |
Other | 1,125 | 767 |
Total | $ 43,237 | $ 49,637 |
Components of Other Non-Current
Components of Other Non-Current Assets (Detail) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Unamortized financing fees | $ 1,391 | $ 1,787 |
Investments | 3,125 | 3,434 |
Notes receivable | 2,464 | |
Deposits | 2,257 | 2,342 |
Other | 154 | 201 |
Total | $ 6,927 | $ 10,228 |
Components of Other Accrued Lia
Components of Other Accrued Liabilities (Detail) - USD ($) | Dec. 29, 2018 | Dec. 30, 2017 | Oct. 07, 2017 |
Other Liabilities Disclosure [Abstract] | |||
Employee compensation | $ 19,469,000 | $ 15,276,000 | |
VSIP liabilities | 174,000 | 25,022,000 | |
Employee vacation | 23,345,000 | 22,638,000 | |
Employee bonus | 7,931,000 | 29,369,000 | |
Fair value of derivative instruments | 7,732,000 | 10,247,000 | |
Insurance | 29,353,000 | 30,052,000 | |
Bank overdraft | 10,550,000 | 5,699,000 | |
Accrued interest | 8,152,000 | 7,711,000 | |
Accrued taxes | 5,661,000 | 10,943,000 | |
Accrued legal costs | 3,874,000 | 7,877,000 | |
Accrued advertising | 3,145,000 | 1,477,000 | |
Accrued legal settlements | 9,053,000 | 6,928,000 | |
Multi-employer pension plan withdrawal costs | 15,223,000 | $ 15,200,000 | |
Accrued short term deferred income | 5,525,000 | 4,940,000 | |
Contingent acquisition consideration | 4,700,000 | ||
Other | 8,695,000 | 7,066,000 | |
Total | $ 147,359,000 | $ 200,468,000 |
Long Term Debt and Capital Leas
Long Term Debt and Capital Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Debt Instrument [Line Items] | ||
Accounts receivable securitization facility | $ 177,000 | |
Capital lease obligations | 21,942 | $ 27,150 |
Other notes payable | 8,621 | 12,167 |
Total debt and capital lease obligations | 1,001,536 | 832,236 |
Current maturities of long-term debt and capital lease obligations | 10,896 | 12,095 |
Total long-term debt and capital lease obligations | $ 990,640 | 820,141 |
Unsecured Credit Facility | ||
Debt Instrument [Line Items] | ||
Unsecured credit facility | 0 | |
2026 Notes | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.50% | |
Final Maturity | 2,026 | |
Senior notes | $ 395,550 | 394,978 |
2022 Notes | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.38% | |
Final Maturity | 2,022 | |
Senior notes | $ 398,423 | $ 397,941 |
Unsecured Credit Facility | ||
Debt Instrument [Line Items] | ||
Interest Rate | 5.60% | |
Final Maturity | 2,022 | |
Accounts Receivable Securitization Facility | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.43% | |
Final Maturity | 2,020 | |
Capital Lease Obligations | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.92% | |
Final Maturity | 2,026 | |
Other Notes Payable | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.10% | |
Final Maturity | 2,020 |
Long Term Debt and Capital Le_2
Long Term Debt and Capital Leases (Parenthetical) (Detail) | 12 Months Ended |
Dec. 29, 2018 | |
2026 Notes | |
Debt Instrument [Line Items] | |
Senior notes due year | 2,026 |
2022 Notes | |
Debt Instrument [Line Items] | |
Senior notes due year | 2,022 |
Debt, Lease and Other Commitm_3
Debt, Lease and Other Commitments - Additional Information (Detail) - USD ($) | Sep. 27, 2018 | Nov. 29, 2017 | Sep. 28, 2016 | Jan. 01, 2016 | Apr. 21, 2015 | Apr. 03, 2012 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jul. 17, 2013 |
Debt Instrument [Line Items] | |||||||||||
Bank overdraft | $ 10,550,000 | $ 5,699,000 | |||||||||
Debt instrument face amount | 808,750,000 | 812,500,000 | |||||||||
Payments for debt issuance costs | $ 100,000 | 729,000 | $ 4,380,000 | ||||||||
Lease arrangements expiration period | 18 years | ||||||||||
Deferred Salaries | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Percentage of amount deferred, maximum | 75.00% | 75.00% | |||||||||
Deferred Bonus | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Percentage of amount deferred, maximum | 100.00% | ||||||||||
Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Lease term | 2 years | ||||||||||
Operating lease period | 1 month | ||||||||||
Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Lease term | 26 years | ||||||||||
Operating lease period | 10 years | ||||||||||
2026 Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument face amount | $ 400,000,000 | $ 400,000,000 | 400,000,000 | ||||||||
Notes due year | Oct. 1, 2026 | ||||||||||
Price to redeem notes as a percentage of principal | 100.00% | ||||||||||
Variable interest rate | 0.30% | ||||||||||
Change of control triggering event price to redeem notes as a percentage of principal | 101.00% | ||||||||||
Balance of unamortized financing costs | $ 5,742,000 | ||||||||||
Debt discount | 2,108,000 | ||||||||||
2022 Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument face amount | $ 400,000,000 | $ 400,000,000 | 400,000,000 | ||||||||
Notes due year | Apr. 1, 2022 | ||||||||||
Price to redeem notes as a percentage of principal | 100.00% | ||||||||||
Variable interest rate | 0.35% | ||||||||||
Change of control triggering event price to redeem notes as a percentage of principal | 101.00% | ||||||||||
Debt discount | $ 300,000 | ||||||||||
Payments Of Financing Costs | 3,900,000 | ||||||||||
Standby Letters Of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility outstanding daily balance during period | $ 8,400,000 | 8,700,000 | |||||||||
Accounts Receivable Securitization Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility outstanding daily balance during period | 0 | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 200,000,000 | $ 150,000,000 | |||||||||
Line of credit extended term | 1 year | ||||||||||
Line of credit facility, expiration date | Sep. 27, 2020 | ||||||||||
Debt instrument covenant compliance | As of December 29, 2018 and December 30, 2017, respectively, the company was in compliance with all restrictive covenants under the facility. | ||||||||||
Line of credit facility, amount available | $ 1,300,000 | ||||||||||
Basis spread on variable rate | 0.85% | ||||||||||
Unused borrowing fee | 0.30% | ||||||||||
Balance of unamortized financing costs | $ 200,000 | 200,000 | |||||||||
Unsecured Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility outstanding daily balance during period | $ 0 | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 700,000,000 | 500,000,000 | |||||||||
Line of credit facility, expiration date | Nov. 29, 2022 | ||||||||||
Line of credit facility, amount available | 491,600,000 | ||||||||||
Line of credit facility, expiration period | 5 years | ||||||||||
Line of credit facility, amount available | 500,000,000 | ||||||||||
Line of credit facility, additional borrowing capacity | $ 200,000,000 | ||||||||||
Covenant, maximum leverage ratio | 4 | ||||||||||
Minimum leverage ratio on covenant holiday | 3.75 | ||||||||||
Payments for debt issuance costs | $ 600,000 | ||||||||||
Unsecured Credit Facility | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility outstanding daily balance during period | $ 4,900,000 | ||||||||||
Unsecured Credit Facility | Base Rate Loans | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 0.00% | 0.00% | |||||||||
Unsecured Credit Facility | Base Rate Loans | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 0.575% | 0.75% | |||||||||
Unsecured Credit Facility | Eurodollar Loans | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 0.575% | 0.70% | |||||||||
Unsecured Credit Facility | Eurodollar Loans | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 1.575% | 1.75% | |||||||||
Unsecured Credit Facility | Federal Funds Rate | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 0.05% | 0.05% | |||||||||
Unsecured Credit Facility | Federal Funds Rate | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 0.30% | 0.50% |
Debt Discount, Underwriting Fee
Debt Discount, Underwriting Fees and Legal and Other fees (Detail) - 2026 Notes $ in Thousands | Dec. 29, 2018USD ($) |
Debt Instrument [Line Items] | |
Debt discount | $ 2,108 |
Underwriting, legal, and other fees | 3,634 |
Total fees | $ 5,742 |
Schedule of Borrowings and Repa
Schedule of Borrowings and Repayments Under Credit Facility (Detail) - Unsecured Credit Facility $ in Thousands | 12 Months Ended |
Dec. 29, 2018USD ($) | |
Debt Instrument [Line Items] | |
Balance as of December 30, 2017 | $ 0 |
Borrowings | 5,900 |
Payments | $ (5,900) |
Schedule of Net Amount Availabl
Schedule of Net Amount Available Under Credit Facility (Detail) - Unsecured Credit Facility - USD ($) | Dec. 29, 2018 | Dec. 30, 2017 | Nov. 29, 2017 |
Debt Instrument [Line Items] | |||
Gross amount available | $ 500,000,000 | $ 700,000,000 | |
Outstanding | $ 0 | ||
Letters of credit | (8,400,000) | ||
Line of credit facility, amount available | $ 491,600,000 |
Schedule of Highest and Lowest
Schedule of Highest and Lowest Outstanding Balance Under Credit Facility (Detail) - Unsecured Credit Facility - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Debt Instrument [Line Items] | ||
Unsecured credit facility | $ 0 | |
Maximum | ||
Debt Instrument [Line Items] | ||
Unsecured credit facility | $ 4,900 |
Aggregate Maturities of Debt Ou
Aggregate Maturities of Debt Outstanding (Including Capital Leases) (Detail) $ in Thousands | Dec. 29, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,019 | $ 10,896 |
2,020 | 183,874 |
2,021 | 3,886 |
2,022 | 402,395 |
2,023 | 2,108 |
Thereafter | 404,533 |
Total | $ 1,007,692 |
Reconciliation of Debt Issuance
Reconciliation of Debt Issuance Costs and Debt Discounts to the Net Carrying Value for Each Debt Obligation (Excluding Line of Credit Arrangements) (Detail) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 | Sep. 28, 2016 | Apr. 03, 2012 |
Debt Instrument [Line Items] | ||||
Face Value | $ 808,750 | $ 812,500 | ||
Debt issuance costs and debt discount | 6,156 | 7,414 | ||
Net carrying value | 802,594 | 805,086 | ||
2026 Notes | ||||
Debt Instrument [Line Items] | ||||
Face Value | 400,000 | 400,000 | $ 400,000 | |
Debt issuance costs and debt discount | 4,450 | 5,022 | ||
Net carrying value | 395,550 | 394,978 | ||
2022 Notes | ||||
Debt Instrument [Line Items] | ||||
Face Value | 400,000 | 400,000 | $ 400,000 | |
Debt issuance costs and debt discount | 1,577 | 2,059 | ||
Net carrying value | 398,423 | 397,941 | ||
Other Notes Payable | ||||
Debt Instrument [Line Items] | ||||
Face Value | 8,750 | 12,500 | ||
Debt issuance costs and debt discount | 129 | 333 | ||
Net carrying value | $ 8,621 | $ 12,167 |
Future Minimum Lease Payments u
Future Minimum Lease Payments under Scheduled Leases (Detail) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Debt Disclosure [Abstract] | ||
2,019 | $ 6,392 | |
2,020 | 3,511 | |
2,021 | 4,191 | |
2,022 | 2,620 | |
2,023 | 2,263 | |
Thereafter | 4,631 | |
Total minimum payments | 23,608 | |
Amount representing interest | 1,666 | |
Obligations under capital leases | 21,942 | $ 27,150 |
Obligations due within one year | 5,896 | |
Long-term obligations under capital leases | 16,046 | |
2,019 | 65,071 | |
2,020 | 60,378 | |
2,021 | 50,744 | |
2,022 | 44,798 | |
2,023 | 36,308 | |
Thereafter | 232,423 | |
Total minimum payments | $ 489,722 |
Schedule of Rent Expense for Al
Schedule of Rent Expense for All Operating Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2016 | Dec. 29, 2018 | Dec. 30, 2017 | |
Debt Disclosure [Abstract] | |||
Rent expense | $ 97,357 | $ 90,660 | $ 95,014 |
Schedule of Deferred Compensati
Schedule of Deferred Compensation Amount Outstanding (Detail) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Debt Disclosure [Abstract] | ||
Deferral elections outstanding | $ 15,996 | $ 15,732 |
Current portion of deferral elections | 1,015 | 1,238 |
Long-term portion of deferral elections | $ 14,981 | $ 14,494 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Variable Interest Entity [Line Items] | ||
Property, plant and equipment, net | $ 743,847 | $ 732,026 |
VIE | ||
Variable Interest Entity [Line Items] | ||
Property, plant and equipment, net | 21,900 | 27,200 |
Gross distribution rights notes receivable | $ 154,400 | $ 137,900 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments - Additional Information (Detail) - Distributor | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Fair Value Disclosures [Line Items] | ||
Number of independent distributors | 4,300 | 4,000 |
Maximum | ||
Fair Value Disclosures [Line Items] | ||
Financing period of distribution rights, years | 10 years |
Carrying Value of Distribution
Carrying Value of Distribution Rights Notes Receivable (Detail) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Distribution rights notes receivable | $ 230,470 | $ 211,702 |
Current portion recorded in accounts and notes receivable, net | 26,345 | 23,965 |
Long-term portion of distribution rights notes receivable | $ 204,125 | $ 187,737 |
Schedule of Fair Value of Notes
Schedule of Fair Value of Notes (Detail) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
2026 Notes | ||
Fair Value Disclosures [Line Items] | ||
Carrying Value | $ 395,550 | $ 394,978 |
2026 Notes | Level 2 Inputs | ||
Fair Value Disclosures [Line Items] | ||
Fair Value | 379,344 | |
2022 Notes | ||
Fair Value Disclosures [Line Items] | ||
Carrying Value | 398,423 | $ 397,941 |
2022 Notes | Level 2 Inputs | ||
Fair Value Disclosures [Line Items] | ||
Fair Value | $ 403,852 |
Schedule of Fair Value of Not_2
Schedule of Fair Value of Notes (Parenthetical) (Detail) | 12 Months Ended |
Dec. 29, 2018 | |
2026 Notes | |
Fair Value Disclosures [Line Items] | |
Senior notes due year | 2,026 |
2022 Notes | |
Fair Value Disclosures [Line Items] | |
Senior notes due year | 2,022 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Mar. 16, 2016 | Jul. 16, 2016 | Apr. 21, 2018 | Dec. 29, 2018 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 19, 2002 |
Class Of Stock [Line Items] | |||||||
Common stock, shares authorized | 500,000,000 | 500,000,000 | 500,000,000 | ||||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | |||||
Common stock, voting rights | one vote for each share | ||||||
Stock repurchase plan, shares authorized | 74,600,000 | ||||||
Current shares available for repurchase | 6,500,000 | 6,500,000 | |||||
Purchase of shares under accelerated share repurchase | 120,147 | 120,147 | 68,000,000 | ||||
Agreement to repurchase an aggregate of common stock | $ 2,489 | $ 2,489 | $ 635,600 | ||||
Accelerated Share Repurchase Program | |||||||
Class Of Stock [Line Items] | |||||||
Purchase of shares under accelerated share repurchase | 5,600,000 | 900,000 | |||||
Agreement to repurchase an aggregate of common stock | $ 120,000 | ||||||
Series A Preferred Stock | |||||||
Class Of Stock [Line Items] | |||||||
Preferred stock, shares authorized | 200,000 | 200,000 | 200,000 | ||||
Preferred stock, par value | $ 100 | $ 100 | $ 100 | ||||
Preferred stock, shares issued | 0 | 0 | 0 | ||||
Series B Preferred Stock | |||||||
Class Of Stock [Line Items] | |||||||
Preferred stock, shares authorized | 800,000 | 800,000 | 800,000 | ||||
Preferred stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Preferred stock, shares issued | 0 | 0 | 0 |
Shares Repurchased Under Stock
Shares Repurchased Under Stock Repurchase Plan (Detail) - USD ($) $ in Thousands | 4 Months Ended | 12 Months Ended | 192 Months Ended |
Apr. 21, 2018 | Dec. 29, 2018 | Dec. 29, 2018 | |
Equity [Abstract] | |||
Total Number of Shares Purchased | 120,147 | 120,147 | 68,000,000 |
Total Cost of Shares Purchased | $ 2,489 | $ 2,489 | $ 635,600 |
Summary of Dividends Excluding
Summary of Dividends Excluding Dividends on Vested Stock-Based Compensation Awards (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Equity [Abstract] | |||
Dividends paid | $ 149,716 | $ 140,429 | $ 130,490 |
Dividends paid per share | $ 0.7100 | $ 0.6700 | $ 0.6250 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - shares | May 21, 2014 | Dec. 29, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based payment grants to employees | 0 | |
Omnibus Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Additional awards that will be issued under the EPIP | 0 | |
Awards granted, authorized amount | 8,000,000 |
Stock Option Activity (Detail)
Stock Option Activity (Detail) - Stock Option - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, Outstanding at beginning of year | 73 | 1,846 | 4,353 |
Options, Exercised | (73) | (1,773) | (2,507) |
Options, Outstanding at end of year | 73 | 1,846 | |
Options, Exercisable at end of year | 73 | 1,846 | |
Weighted Average Exercise Price, Outstanding at beginning of year | $ 10.87 | $ 10.89 | $ 10.97 |
Weighted Average Exercise Price, Exercised | $ 10.87 | 10.89 | 11.02 |
Weighted Average Exercise Price, Outstanding at end of year | $ 10.87 | $ 10.89 |
Cash Received, Windfall Tax Ben
Cash Received, Windfall Tax Benefits, and Intrinsic Value from Stock Option Exercises (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Share Based Compensation [Abstract] | |||
Cash received from option exercises | $ 791 | $ 19,313 | $ 27,631 |
Cash tax windfall benefit, net | 111 | 4,186 | 3,746 |
Intrinsic value of stock options exercised | $ 609 | $ 14,994 | $ 15,778 |
Stock-Based Compensation (Perfo
Stock-Based Compensation (Performance-Contingent Total Shareholder Return Shares) - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 29, 2018 | Jan. 02, 2017 | |
Performance Contingent Total Shareholders Return Shares | Performance contingent Awards 2012 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 18 months | |
Performance Contingent Total Shareholders Return Shares | Performance contingent Awards Granted Subsequent To 2012 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 2 years | |
Total Shareholders Return | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based payment award, fair value assumptions, method used | Inputs into the model included the following for the company and comparator companies: (i) TSR from the beginning of the performance cycle through the measurement date; (ii) volatility; (iii) risk-free interest rates; and (iv) the correlation of the comparator companies’ TSR. The inputs are based on historical capital market data. | |
Total Shareholders Return | Omnibus Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost related to nonvested restricted stock granted by the EPIP | $ 0.7 | |
Expected weighted-average period to recognize compensation cost (years) | 2 months 1 day | |
Shares granted | 0 | 426,000 |
Performance Contingent Total Sh
Performance Contingent Total Shareholder Return Shares (Detail) - Total Shareholders Return | 12 Months Ended |
Dec. 29, 2018 | |
90th Percentile | |
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Equity Instruments Other Than Options Restricted Stock Units [Line Items] | |
Payout as % of Target | 200.00% |
Percentile | 90.00% |
70th Percentile | |
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Equity Instruments Other Than Options Restricted Stock Units [Line Items] | |
Payout as % of Target | 150.00% |
Percentile | 70.00% |
50th Percentile | |
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Equity Instruments Other Than Options Restricted Stock Units [Line Items] | |
Payout as % of Target | 100.00% |
Percentile | 50.00% |
30th Percentile | |
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Equity Instruments Other Than Options Restricted Stock Units [Line Items] | |
Payout as % of Target | 50.00% |
Percentile | 30.00% |
Below 30th Percentile | |
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Equity Instruments Other Than Options Restricted Stock Units [Line Items] | |
Payout as % of Target | 0.00% |
Percentile | 30.00% |
Payout Percentage of Total Shar
Payout Percentage of Total Shareholder Return Shares (Detail) - Total Shareholders Return | 12 Months Ended |
Dec. 29, 2018 | |
2014 Award | Fiscal 2016 | |
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Equity Instruments Other Than Options Restricted Stock Units [Line Items] | |
Payout percentage | 27.00% |
2015 Award | Fiscal 2017 | |
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Equity Instruments Other Than Options Restricted Stock Units [Line Items] | |
Payout percentage | 0.00% |
2016 Award | Fiscal 2018 | |
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Equity Instruments Other Than Options Restricted Stock Units [Line Items] | |
Payout percentage | 12.50% |
Performance Contingent TSR Shar
Performance Contingent TSR Shares (Detail) - Total Shareholders Return - Omnibus Plan - $ / shares | 12 Months Ended | |
Dec. 29, 2018 | Jan. 02, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted | 0 | 426,000 |
Assumed vesting date | Mar. 1, 2019 | |
Fair value per share | $ 23.31 |
Stock-Based Compensation (Per_2
Stock-Based Compensation (Performance-Contingent Return on Invested Capital Shares) - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 29, 2018USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 1 year |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Return on investment target over the two fiscal years immediately preceding the vesting date | 1.75% |
Percentage of shares that can be earned | 0.00% |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Return on investment target over the two fiscal years immediately preceding the vesting date | 4.75% |
Percentage of shares that can be earned | 125.00% |
Maximum | 2017 Award | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of shares that can be earned | 80.00% |
Weighted Average Cost of Capital | Range One | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of payout, ROIC above WACC | 50.00% |
Weighted Average Cost of Capital | Range Two | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of payout, ROIC above WACC | 100.00% |
Weighted Average Cost of Capital | Range Three | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of payout, ROIC above WACC | 125.00% |
Return On Invested Capital | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of payout | 0.00% |
Return On Invested Capital | Range One | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of payout, ROIC above WACC | 1.75% |
Return On Invested Capital | Range Two | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of payout, ROIC above WACC | 3.75% |
Return On Invested Capital | Range Three | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of payout, ROIC above WACC | 4.75% |
Performance Contingent Return On Invested Capital Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost related to nonvested restricted stock granted by the EPIP | $ | $ 0.5 |
Expected weighted-average period to recognize compensation cost (years) | 2 months 1 day |
Shares granted | shares | 0 |
Performance Contingent Return On Invested Capital Shares | Performance contingent Awards 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 18 months |
Performance Contingent Return On Invested Capital Shares | Performance contingent Awards subsequent to 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 2 years |
Payout Percentage of ROIC Award
Payout Percentage of ROIC Awards (Detail) - Performance Contingent Return On Invested Capital Shares | 12 Months Ended |
Dec. 29, 2018 | |
2014 Award | Fiscal 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Payout percentage | 96.00% |
2015 Award | Fiscal 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Payout percentage | 87.00% |
2016 Award | Fiscal 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Payout percentage | 70.00% |
Performance Contingent ROIC Sha
Performance Contingent ROIC Shares (Detail) - Return On Invested Capital - 2017 Award - Omnibus Plan shares in Thousands | 12 Months Ended |
Jan. 02, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares granted | shares | 426 |
Assumed vesting date | Mar. 1, 2019 |
Fair value per share | $ / shares | $ 19.97 |
Performance-Contingent Restrict
Performance-Contingent Restricted Stock Awards (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividends at vesting | $ 498 | $ 553 | $ 583 | |
Tax windfall/(shortfall) | $ 675 | |||
Fiscal Year Vested 2018 | 2016 Award Granted | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividends at vesting | 405 | |||
Tax windfall/(shortfall) | (2,130) | |||
Fair value at vesting | $ 6,504 | |||
Fiscal Year Vested 2017 | 2015 Award Granted | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividends at vesting | 392 | |||
Tax windfall/(shortfall) | (3,103) | |||
Fair value at vesting | $ 6,316 | |||
Fiscal Year Vested 2015 | 2014 Award Granted | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividends at vesting | $ 441 | |||
Tax windfall/(shortfall) | (3,090) | |||
Fair value at vesting | $ 7,173 | |||
TSR Modifier | Fiscal Year Vested 2018 | 2016 Award Granted | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares increase/(decrease) | (333,112) | |||
TSR Modifier | Fiscal Year Vested 2017 | 2015 Award Granted | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares increase/(decrease) | (378,219) | |||
TSR Modifier | Fiscal Year Vested 2015 | 2014 Award Granted | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares increase/(decrease) | (248,872) | |||
ROIC Modifier | Fiscal Year Vested 2018 | 2016 Award Granted | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares increase/(decrease) | (114,190) | |||
ROIC Modifier | Fiscal Year Vested 2017 | 2015 Award Granted | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares increase/(decrease) | (49,272) | |||
ROIC Modifier | Fiscal Year Vested 2015 | 2014 Award Granted | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares increase/(decrease) | (13,637) |
Performance-Contingent Restri_2
Performance-Contingent Restricted Stock Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Performance Contingent Return On Invested Capital Shares | |||
Number of Shares | |||
Number of Shares, Initial grant | 0 | ||
Performance Contingent Restricted Stock | |||
Number of Shares | |||
Number of Shares, Balance at beginning of period | 1,575,000 | 1,543,000 | 1,349,000 |
Number of Shares, Initial grant | 855,000 | 801,000 | |
Number of Shares, Vested | (314,000) | (329,000) | (312,000) |
Number of Shares, Forfeitures | (35,000) | (67,000) | (32,000) |
Number of shares, Balance at end of period | 779,000 | 1,575,000 | 1,543,000 |
Weighted Average Fair Value | |||
Weighted Average Fair Value, Balance at beginning of period | $ 22.20 | $ 21.53 | $ 21.26 |
Weighted Average Fair Value, Initial grant | 21.61 | 22.83 | |
Weighted Average Fair Value, Vested | 21.89 | 19.14 | 22.02 |
Weighted Average Fair Value, Forfeitures | 22.83 | 21.08 | 23.60 |
Weighted Average Fair Value, Balance at end of period | $ 21.64 | $ 22.20 | $ 21.53 |
Performance Contingent Restricted Stock | Performance Contingent Return On Invested Capital Shares | |||
Number of Shares | |||
Number of Shares, Grant reduction for not achieving the modifier | (114,000) | (49,000) | (249,000) |
Weighted Average Fair Value | |||
Weighted Average Fair Value, Grant reduction for not achieving the modifier | $ 21.49 | $ 19.14 | $ 23.97 |
Performance Contingent Restricted Stock | Performance Contingent Total Shareholders Return Shares | |||
Number of Shares | |||
Number of Shares, Grant reduction for not achieving the modifier | (333,000) | (378,000) | (14,000) |
Weighted Average Fair Value | |||
Weighted Average Fair Value, Grant reduction for not achieving the modifier | $ 24.17 | $ 21.21 | $ 21.47 |
Stock-Based Compensation (Per_3
Stock-Based Compensation (Performance-Contingent Restricted Stock) - Additional Information (Detail) - Performance Contingent Restricted Stock $ in Millions | 12 Months Ended |
Dec. 29, 2018USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost related to nonvested restricted stock granted by the EPIP | $ 1.1 |
Expected weighted-average period to recognize compensation cost (years) | 2 months 1 day |
Stock-Based Compensation (Defer
Stock-Based Compensation (Deferred and Restricted Stock) - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | May 31, 2013 | Dec. 29, 2018 | Oct. 07, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
Chief Executive Officer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock award | $ 1.3 | ||
Restricted shares issued | 58,500 | ||
Deferred and restricted stock | Non Employee Directors | Annual Grants | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate shares received | 65,000 | ||
Deferred and restricted stock | Non Employee Directors | Annual Grants | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
Deferred Stock | Non Employee Directors | Annual Grants | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Issuance of deferred compensation (in shares) | 98,920 | ||
Restricted Stock Award | Chief Executive Officer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted shares per share | $ 22.25 | ||
Restricted stock award vested price | $ 18.48 | ||
Deferred Stock Activity | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to nonvested restricted stock granted by the EPIP | $ 0.5 | ||
Expected weighted-average period to recognize compensation cost (years) | 4 months 28 days | ||
Fair value at vesting | $ 2 | ||
Retainer Conversion | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Retainers conversion into deferred shares | 100.00% | ||
Vesting period | 1 year | ||
Director Retainer Deferrals | Deferred and restricted stock | Non Employee Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate shares received | 12,950 |
Deferred and Restricted Stock A
Deferred and Restricted Stock Activity (Detail) - Deferred and restricted stock - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Number of Shares | |||
Number of Shares, Balance at beginning of period | 87 | 149 | 126 |
Number of Shares, Granted | 78 | 87 | 95 |
Number of Shares, Vested | (99) | (149) | (72) |
Number of shares, Balance at end of period | 66 | 87 | 149 |
Number of shares, Vested and deferred at end of period | 198 | 192 | 331 |
Weighted Average Fair Value | |||
Weighted Average Fair Value, Balance at beginning of period | $ 18.70 | $ 20.39 | $ 21.89 |
Weighted Average Fair Value, Granted | 19.90 | 18.70 | 19.30 |
Weighted Average Fair Value, Vested | 18.70 | 20.39 | 21.59 |
Weighted Average Fair Value, Balance at end of period | $ 19.93 | $ 18.70 | $ 20.39 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Appreciation Rights) - Additional Information (Detail) | 12 Months Ended |
Dec. 29, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Vesting period | 1 year |
Exercisable period | 9 years |
Summary of Company's Stock Base
Summary of Company's Stock Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock based compensation | $ 8,148 | $ 16,093 | $ 18,761 |
Performance Contingent Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock based compensation | 6,504 | 14,326 | 16,611 |
Deferred Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock based compensation | $ 1,644 | $ 1,767 | 2,161 |
Stock Appreciation Rights | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock based compensation | $ (11) |
Summary of Reclassifications Ou
Summary of Reclassifications Out of AOCI (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from AOCI, Derivative instruments net of tax | $ (1,079) | $ (1,367) | $ (3,399) | |
Reclassification From AOCI, Current Period Net Of Tax | [1] | (11,047) | (8,150) | (11,800) |
Derivative Instruments | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from AOCI, Derivative instruments before tax | [1] | (1,443) | (2,222) | (5,528) |
Reclassification from AOCI, Derivative instruments tax benefit | [1] | 364 | 855 | 2,129 |
Reclassification from AOCI, Derivative instruments net of tax | [1] | (1,079) | (1,367) | (3,399) |
Reclassification From AOCI, Current Period Net Of Tax | (1,079) | (1,367) | ||
Pension and postretirement plans, prior service credits | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from AOCI, Current Period, before Tax | [1],[2] | (175) | (175) | (175) |
Pension and postretirement plans, Settlement losses | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from AOCI, Current Period, before Tax | [1],[2] | (7,781) | (4,649) | (6,646) |
Pension and postretirement plans, actuarial losses | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from AOCI, Current Period, before Tax | [1],[2] | (5,380) | (5,858) | (6,840) |
Accumulated Defined Benefit Plans Adjustment | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from AOCI, Current Period, before Tax | [1] | (13,336) | (10,682) | (13,661) |
Reclassification from AOCI, Current Period, Tax benefit | [1] | 3,368 | 3,899 | 5,260 |
Reclassification From AOCI, Current Period Net Of Tax | [1] | (9,968) | (6,783) | (8,401) |
Interest Rate Contracts | Derivative Instruments | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from AOCI, Derivative instruments before tax | [1] | (142) | (142) | (221) |
Commodity Contract | Derivative Instruments | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from AOCI, Derivative instruments before tax | [1],[3] | (1,301) | (2,080) | (5,307) |
Reclassification from AOCI, Derivative instruments tax benefit | 329 | 801 | 2,043 | |
Reclassification from AOCI, Derivative instruments net of tax | $ (972) | $ (1,279) | $ (3,264) | |
[1] | Amounts in parentheses indicate debits to determine net income. | |||
[2] | These items are included in the computation of net periodic pension cost. See Note 22, Postretirement Plans, for additional information. | |||
[3] | Amounts are presented as an adjustment to reconcile net income to net cash provided by operating activities on the Consolidated Statements of Cash Flows. |
Summary of AOCI exclusive of re
Summary of AOCI exclusive of reclassification (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Amount of Gain (Loss) Recognized in AOCI, Derivative instruments net of tax | $ 2,978 | $ (6,789) | $ 5,730 |
Amount of Gain (Loss) Recognized in AOCI, Current year, net of tax | (16,853) | (9,426) | 1,717 |
Derivative Instruments | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Net change in fair value of derivatives | 3,984 | (9,734) | 9,316 |
Amount of Gain (Loss) Recognized in AOCI, Derivative instruments tax benefit | (1,006) | 2,945 | (3,586) |
Amount of Gain (Loss) Recognized in AOCI, Derivative instruments net of tax | 2,978 | (6,789) | 5,730 |
Amount of Gain (Loss) Recognized in AOCI, Current year, net of tax | 2,978 | (6,789) | |
Current Year Actuarial Loss | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Amount of Gain (Loss) Recognized in AOCI, Current year, before tax | (26,528) | (4,307) | (6,525) |
Accumulated Defined Benefit Plans Adjustment | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Amount of Gain (Loss) Recognized in AOCI, Current year, before tax | (26,528) | (4,307) | (6,525) |
Amount of Gain (Loss) Recognized in AOCI, Current year, tax benefit | 6,697 | 1,670 | 2,512 |
Amount of Gain (Loss) Recognized in AOCI, Current year, net of tax | (19,831) | (2,637) | (4,013) |
Interest Rate Contracts | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Amount of Gain (Loss) Recognized in AOCI, Derivative instruments net of tax | 666 | ||
Interest Rate Contracts | Derivative Instruments | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Net change in fair value of derivatives | 1,083 | ||
Commodity Contract | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Amount of Gain (Loss) Recognized in AOCI, Derivative instruments net of tax | 2,978 | (6,789) | 5,064 |
Commodity Contract | Derivative Instruments | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Net change in fair value of derivatives | $ 3,984 | $ (9,734) | $ 8,233 |
Changes to AOCI, Net of Income
Changes to AOCI, Net of Income Tax, By Component (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balances | $ 1,250,677 | $ 1,210,080 | $ 1,243,082 | |
Other comprehensive gain (loss) before reclassifications | (16,853) | (9,426) | 1,717 | |
Reclassified to earnings from AOCI | [1] | 11,047 | 8,150 | 11,800 |
Reclassified to retained earnings from AOCI | 18,800 | |||
Balances | 1,258,267 | 1,250,677 | 1,210,080 | |
Cash Flow Hedge Items | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balances | (6,483) | (1,061) | ||
Other comprehensive gain (loss) before reclassifications | 2,978 | (6,789) | ||
Reclassified to earnings from AOCI | 1,079 | 1,367 | ||
Reclassified to retained earnings from AOCI | (1,709) | |||
Balances | (4,135) | (6,483) | (1,061) | |
Accumulated Defined Benefit Plans Adjustment | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balances | (78,076) | (82,222) | ||
Other comprehensive gain (loss) before reclassifications | (19,831) | (2,637) | (4,013) | |
Reclassified to earnings from AOCI | [1] | 9,968 | 6,783 | 8,401 |
Reclassified to retained earnings from AOCI | (17,097) | |||
Balances | (105,036) | (78,076) | (82,222) | |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balances | (84,559) | (83,283) | (96,800) | |
Other comprehensive gain (loss) before reclassifications | (16,853) | (9,426) | ||
Reclassified to earnings from AOCI | 11,047 | 8,150 | ||
Reclassified to retained earnings from AOCI | (18,806) | |||
Balances | $ (109,171) | $ (84,559) | $ (83,283) | |
[1] | Amounts in parentheses indicate debits to determine net income. |
Loss Reclassified From AOCI for
Loss Reclassified From AOCI for Commodity Contracts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Net of tax | $ 1,079 | $ 1,367 | $ 3,399 | |
Derivative Instruments | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Gross loss reclassified from AOCI into income | [1] | 1,443 | 2,222 | 5,528 |
Tax benefit | [1] | (364) | (855) | (2,129) |
Net of tax | [1] | 1,079 | 1,367 | 3,399 |
Commodity Contract | Derivative Instruments | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Gross loss reclassified from AOCI into income | [1],[2] | 1,301 | 2,080 | 5,307 |
Tax benefit | (329) | (801) | (2,043) | |
Net of tax | $ 972 | $ 1,279 | $ 3,264 | |
[1] | Amounts in parentheses indicate debits to determine net income. | |||
[2] | Amounts are presented as an adjustment to reconcile net income to net cash provided by operating activities on the Consolidated Statements of Cash Flows. |
Basic and Diluted Earnings per
Basic and Diluted Earnings per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 29, 2018 | Oct. 06, 2018 | [1] | Jul. 14, 2018 | [1] | Dec. 30, 2017 | Oct. 07, 2017 | [1] | Jul. 15, 2017 | [1] | Apr. 21, 2018 | [1] | Apr. 22, 2017 | [1] | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||||||||
Net income | $ 20,841 | $ 39,630 | $ 45,442 | $ 78,533 | $ (33,571) | $ 44,740 | $ 51,247 | $ 60,418 | $ 157,160 | $ 150,120 | $ 163,776 | ||||||
Basic Earnings Per Common Share: | |||||||||||||||||
Basic weighted average shares outstanding per common share | 211,016 | 209,573 | 208,511 | ||||||||||||||
Basic earnings per common share | $ 0.10 | $ 0.19 | $ 0.22 | $ 0.37 | $ (0.16) | $ 0.21 | $ 0.24 | $ 0.29 | $ 0.74 | $ 0.72 | $ 0.79 | ||||||
Diluted Earnings Per Common Share: | |||||||||||||||||
Basic weighted average shares outstanding per common share | 211,016 | 209,573 | 208,511 | ||||||||||||||
Add: Shares of common stock assumed issued upon exercise of stock options, vesting of performance-contingent restricted stock and deferred stock | 616 | 862 | 1,843 | ||||||||||||||
Diluted weighted average shares outstanding per common share | 211,632 | 210,435 | 210,354 | ||||||||||||||
Diluted earnings per common share | $ 0.10 | $ 0.19 | $ 0.21 | $ 0.37 | $ (0.16) | $ 0.21 | $ 0.24 | $ 0.29 | $ 0.74 | $ 0.71 | $ 0.78 | ||||||
[1] | As disclosed in Note 4, Financial Statement Revisions, the company reported cash receipts and payments for the repurchase and sale of territories and cash paid at issuance of notes receivable at net when these transactions should have been disaggregated. We concluded that the errors were not material to any of these prior periods that were impacted. The error resulted in an understatement of cash flows from operating activities and cash flows used in investing activities of $5.9 million, $12.1 million and $12.8 million, respectively, for the sixteen, twenty-eight, and forty-week amounts included in the first, second, and third quarters of fiscal 2017, respectively. These amounts were revised upon subsequent presentation of these financial statements. |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Antidilutive Shares excluded from Computation of Earnings Per Share | 0 | 380,015 | 0 |
Summary of Company's Balance Sh
Summary of Company's Balance Sheet Related Pension and Other Postretirement Benefit Plan (Detail) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Pension And Other Postretirement Benefit Expense [Abstract] | ||
Current benefit liability | $ 1,283 | $ 935 |
Noncurrent benefit liability | 39,149 | 60,107 |
Accumulated other comprehensive loss, net of tax | $ 105,036 | $ 78,076 |
Postretirement Plans - Addition
Postretirement Plans - Additional Information (Detail) - USD ($) | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Oct. 06, 2018 | Jul. 14, 2018 | Oct. 07, 2017 | Apr. 21, 2018 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 |
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||||||||
Defined benefit plans estimated final non-cash settlement charge | $ 125,000,000 | ||||||||||
Expected pension cost for fiscal 2019 | 3,000,000 | ||||||||||
Expected long-term rate of return on plan assets | 5.20% | 5.90% | 5.90% | ||||||||
Expected company contribution | $ 1,041,000 | ||||||||||
Postretirement Benefits, minimum years of service for eligibility | 10 years | ||||||||||
Postretirement Benefits, minimum age for eligibility | 55 years | ||||||||||
Expense under plans | $ 8,474,000 | $ (897,000) | $ 2,238,000 | ||||||||
Contribution of pension fund in excess of total contribution | 5.00% | 5.00% | 5.00% | ||||||||
Multiemployer plans, minimum contribution | $ 0 | ||||||||||
Multiemployer plan, withdrawal obligation | $ 15,200,000 | $ 15,223,000 | |||||||||
Multiemployer plans transition payments payable | $ 3,100,000 | ||||||||||
Multiemployer plans payable date | Nov. 3, 2017 | ||||||||||
Multiemployer plan withdrawal liability of net present value monthly payments period | 20 years | ||||||||||
Multiemployer plans, increase in withdrawal obligation | $ 2,300,000 | ||||||||||
Multiemployer plan, withdrawal obligation paid | 200,000 | ||||||||||
Common Stock | |||||||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||||||||
Defined benefit plan equity securities included in common stock | 2,030,363 | ||||||||||
Equity securities, amount | $ 39,200,000 | ||||||||||
Percentage of total plan assets | 11.50% | ||||||||||
Proceeds from sale of equity securities | $ 41,000,000 | ||||||||||
Pension plans | |||||||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||||||||
Required cash contribution to fully fund under defined benefit plans | (32,238,000) | (53,098,000) | |||||||||
Actual return on plan assets | 2,437,000 | $ 42,076,000 | $ 4,700,000 | ||||||||
Amortization from accumulated other comprehensive income into net periodic cost (benefit) | $ 7,500,000 | ||||||||||
Expected long-term rate of return on plan assets | 5.34% | 8.00% | 8.00% | ||||||||
Contribution of company to company pension plans | $ 40,971,000 | $ 1,891,000 | $ 1,341,000 | ||||||||
Last Fifteen Years | |||||||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||||||||
Average annual return on the plan assets | 6.90% | ||||||||||
Non Qualified Pension Plans | |||||||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||||||||
Expected company contribution | $ 300,000 | ||||||||||
Qualified Pension Plans | |||||||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||||||||
Expected company contribution | 2,500,000 | ||||||||||
Postretirement Benefit Plans | |||||||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||||||||
Required cash contribution to fully fund under defined benefit plans | (8,194,000) | (7,943,000) | |||||||||
Amortization from accumulated other comprehensive income into net periodic cost (benefit) | (300,000) | ||||||||||
Contribution of company to company pension plans | 1,308,000 | 376,000 | |||||||||
Expected company contribution | 1,000,000 | ||||||||||
Contributions by participants | 823,000 | 330,000 | 300,000 | ||||||||
Multiemployer Plans | |||||||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||||||||
Expense under plans | $ 1,000,000 | $ 2,100,000 | 2,200,000 | ||||||||
Red Zone | |||||||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||||||||
Percentage of funded under multi employer plans | Less than 65 percent | ||||||||||
Yellow Zone | |||||||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||||||||
Percentage of funded under multi employer plans | Between 65 and less than 80 percent | ||||||||||
Green Zone | |||||||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||||||||
Percentage of funded under multi employer plans | At least 80 percent | ||||||||||
Plan No. 1 | |||||||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||||||||
Voluntarily contributions made by an employer | $ 100,000 | $ 30,000,000 | $ 10,000,000 | ||||||||
Expected long-term rate of return on plan assets | 5.20% | ||||||||||
Percentage of total plan assets | 100.00% | 100.00% | |||||||||
Plan No. 2 | |||||||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||||||||
Voluntarily contributions made by an employer | $ 600,000 | ||||||||||
Expected long-term rate of return on plan assets | 7.40% | ||||||||||
Required | Pension plans | |||||||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||||||||
Contribution of company to company pension plans | $ 271,000 | $ 286,000 | 341,000 | ||||||||
Required | Non Qualified Pension Plans | |||||||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||||||||
Contribution of company to company pension plans | 300,000 | ||||||||||
Discretionary | Pension plans | |||||||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||||||||
Contribution of company to company pension plans | 40,700,000 | $ 1,605,000 | $ 1,000,000 | ||||||||
Discretionary | Qualified Pension Plans | |||||||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||||||||
Contribution of company to company pension plans | 40,700,000 | ||||||||||
Minimum | |||||||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||||||||
Required cash contribution to fully fund under defined benefit plans | $ 5,000,000 | ||||||||||
Retiree medical coverage provided | 3 years | ||||||||||
Maximum | |||||||||||
Pension and Other Postretirement Benefits Disclosure [Line Items] | |||||||||||
Required cash contribution to fully fund under defined benefit plans | $ 35,000,000 | ||||||||||
Retiree medical coverage provided | 5 years |
Summary of Recognized Settlemen
Summary of Recognized Settlement Charges by Quarter (Detail) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Oct. 06, 2018 | Jul. 14, 2018 | Dec. 30, 2017 | Oct. 07, 2017 | Dec. 31, 2016 | Oct. 08, 2016 | Jul. 16, 2016 | Apr. 21, 2018 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Pension And Other Postretirement Benefit Expense [Abstract] | ||||||||||||
Settlement loss | $ 1,148 | $ 930 | $ 1,035 | $ 1,619 | $ 3,030 | $ 173 | $ 1,832 | $ 4,641 | $ 4,668 | $ 7,781 | $ 4,649 | $ 6,646 |
Components of Net Periodic Bene
Components of Net Periodic Benefit (Income) Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Oct. 06, 2018 | Jul. 14, 2018 | Dec. 30, 2017 | Oct. 07, 2017 | Dec. 31, 2016 | Oct. 08, 2016 | Jul. 16, 2016 | Apr. 21, 2018 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Settlement loss | $ 1,148 | $ 930 | $ 1,035 | $ 1,619 | $ 3,030 | $ 173 | $ 1,832 | $ 4,641 | $ 4,668 | $ 7,781 | $ 4,649 | $ 6,646 |
Pension plans | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Service cost | 937 | 755 | 830 | |||||||||
Interest cost | 12,513 | 12,852 | 13,682 | |||||||||
Expected return on plan assets | (18,831) | (25,669) | (26,644) | |||||||||
Settlement loss | 7,781 | 4,649 | 6,646 | |||||||||
Prior service cost (credit) | 387 | 387 | 387 | |||||||||
Actuarial (gain) loss | 5,811 | 6,355 | 7,294 | |||||||||
Net periodic pension cost (income) | 8,598 | (671) | 2,195 | |||||||||
Current year actuarial (gain) loss | 25,492 | 4,119 | 8,879 | |||||||||
Settlement loss | (7,781) | (4,649) | (6,646) | |||||||||
Amortization of prior service (cost) credit | (387) | (387) | (387) | |||||||||
Amortization of actuarial gain (loss) | (5,811) | (6,355) | (7,294) | |||||||||
Total recognized in other comprehensive (loss) income | 11,513 | (7,272) | (5,448) | |||||||||
Total recognized in net periodic benefit cost and other comprehensive loss (income) | 20,111 | (7,943) | (3,253) | |||||||||
Postretirement Benefit Plans | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Service cost | 288 | 256 | 401 | |||||||||
Interest cost | 234 | 227 | 309 | |||||||||
Prior service cost (credit) | (212) | (212) | (212) | |||||||||
Actuarial (gain) loss | (431) | (497) | (454) | |||||||||
Net periodic pension cost (income) | (121) | (226) | 44 | |||||||||
Current year actuarial (gain) loss | 1,036 | 188 | (2,354) | |||||||||
Amortization of prior service (cost) credit | 212 | 212 | 212 | |||||||||
Amortization of actuarial gain (loss) | 431 | 497 | 454 | |||||||||
Total recognized in other comprehensive (loss) income | 1,679 | 897 | (1,688) | |||||||||
Total recognized in net periodic benefit cost and other comprehensive loss (income) | $ 1,558 | $ 671 | $ (1,644) |
Funded Status and Amounts Recog
Funded Status and Amounts Recognized in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Change in plan assets: | |||
Current liability | $ (1,283) | $ (935) | |
Noncurrent liability | (39,149) | (60,107) | |
Pension plans | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 393,952 | 398,595 | |
Service cost | 937 | 755 | $ 830 |
Interest cost | 12,513 | 12,852 | 13,682 |
Actuarial loss | 9,098 | 20,526 | |
Benefits paid | (23,843) | (24,408) | |
Settlements | (24,879) | (14,368) | |
Benefit obligation at end of year | 367,778 | 393,952 | 398,595 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 340,854 | 335,663 | |
Actual return on plan assets | 2,437 | 42,076 | 4,700 |
Employer contribution | 40,971 | 1,891 | 1,341 |
Benefits paid | (23,843) | (24,408) | |
Settlements | (24,879) | (14,368) | |
Fair value of plan assets at end of year | 335,540 | 340,854 | 335,663 |
Fair value of plan assets at end of year | 335,540 | 340,854 | 335,663 |
Benefit obligation at end of year | 367,778 | 393,952 | 398,595 |
Unfunded status and amount recognized at end of year | (32,238) | (53,098) | |
Current liability | (258) | (260) | |
Noncurrent liability | (31,980) | (52,838) | |
Amount recognized at end of year | (32,238) | (53,098) | |
Net actuarial (gain) loss before taxes | 137,903 | 126,002 | |
Prior service cost before taxes | 5,039 | 5,426 | |
Amounts recognized in accumulated other comprehensive income (loss) | 142,942 | 131,428 | |
Accumulated benefit obligation at end of year | 366,709 | 392,057 | |
Postretirement Benefit Plans | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 7,943 | 7,648 | |
Service cost | 288 | 256 | 401 |
Interest cost | 234 | 227 | 309 |
Participant contributions | 823 | 330 | 300 |
Actuarial loss | 1,037 | 188 | |
Benefits paid | (2,131) | (706) | |
Benefit obligation at end of year | 8,194 | 7,943 | 7,648 |
Change in plan assets: | |||
Employer contribution | 1,308 | 376 | |
Benefits paid | (2,131) | (706) | |
Participant contributions | 823 | 330 | 300 |
Benefit obligation at end of year | 8,194 | 7,943 | $ 7,648 |
Unfunded status and amount recognized at end of year | (8,194) | (7,943) | |
Current liability | (1,025) | (674) | |
Noncurrent liability | (7,169) | (7,269) | |
Amount recognized at end of year | (8,194) | (7,943) | |
Net actuarial (gain) loss before taxes | (2,379) | (3,846) | |
Prior service cost before taxes | (50) | (262) | |
Amounts recognized in accumulated other comprehensive income (loss) | $ (2,429) | $ (4,108) |
Weighted Average Assumptions Us
Weighted Average Assumptions Used for Pension Plans (Detail) | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Weighted average assumptions used to determine net periodic benefit cost/(income), Expected return on plan assets | 5.20% | 5.90% | 5.90% | |||
Pension plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Weighted average assumptions used to determine Measurement date | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Weighted average assumptions used to determine benefit obligations, Discount rate | 3.41% | 3.58% | 4.00% | |||
Weighted average assumptions used to determine benefit obligations, Rate of compensation increase | 3.00% | 3.00% | 3.00% | |||
Weighted average assumptions used to determine Measurement date | Jan. 1, 2018 | Jan. 1, 2017 | Jan. 1, 2016 | |||
Weighted average assumptions used to determine net periodic benefit cost/(income), Discount rate | 3.58% | 4.00% | 4.25% | |||
Weighted average assumptions used to determine net periodic benefit cost/(income), Expected return on plan assets | 5.34% | 8.00% | 8.00% | |||
Weighted average assumptions used to determine net periodic benefit cost/(income), Rate of compensation increase | 3.00% | 3.00% | 3.00% | |||
Postretirement Benefit Plans | Benefit Obligations | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Weighted average assumptions used to determine Measurement date | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Weighted average assumptions used to determine benefit obligations, Discount rate | 4.07% | 3.36% | 3.66% | |||
Health care cost trend rate, Initial rate | 6.50% | 6.00% | 6.50% | |||
Health care cost trend rate, Ultimate rate | 5.00% | 5.00% | 5.00% | |||
Health care cost trend rate, Year trend reaches the ultimate rate | 2,025 | 2,022 | 2,023 | |||
Postretirement Benefit Plans | Net Periodic Benefit Cost | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Weighted average assumptions used to determine Measurement date | Jan. 1, 2018 | Jan. 1, 2017 | Jan. 1, 2016 | |||
Weighted average assumptions used to determine net periodic benefit cost/(income), Discount rate | 3.36% | 3.66% | 3.83% | |||
Health care cost trend rate, Initial rate | 6.00% | 6.50% | 8.00% | |||
Health care cost trend rate, Ultimate rate | 5.00% | 5.00% | 5.00% | |||
Health care cost trend rate, Year trend reaches the ultimate rate | 2,022 | 2,023 | 2,022 |
Plans Fair Value of Plan Assets
Plans Fair Value of Plan Assets by Asset Class (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 29, 2018 | Dec. 31, 2017 | Dec. 30, 2017 | Dec. 31, 2016 | |
Pension plans | ||||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||||
Fair value of plan assets | $ 335,540 | $ 335,540 | $ 340,854 | $ 340,854 | $ 335,663 | |
Short Term Investments And Cash | ||||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||||
Fair value of plan assets | 34,118 | 19,771 | ||||
Equity Securities | Us Companies | ||||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||||
Fair value of plan assets | 65,414 | |||||
Equity Securities | International Companies | ||||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||||
Fair value of plan assets | 665 | |||||
Equity Securities | International Equity Funds | ||||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||||
Fair value of plan assets | [1] | 22,178 | ||||
Equity Securities | Domestic Equity Funds | ||||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||||
Fair value of plan assets | [2] | 19,879 | ||||
Fixed Income Securities | US Treasury Securities | ||||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||||
Fair value of plan assets | 4,581 | 6,538 | ||||
Fixed Income Securities | US Government Agencies Debt Securities | ||||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||||
Fair value of plan assets | 3,561 | 10,531 | ||||
Fixed Income Securities | Domestic Corporate Debt Securities | ||||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||||
Fair value of plan assets | 166,670 | 9,993 | ||||
Fixed Income Securities | International Corporate Bonds | ||||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||||
Fair value of plan assets | 53,709 | |||||
Fixed Income Securities | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||||
Fair value of plan assets | 3,004 | |||||
Pending Transactions | ||||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||||
Fair value of plan assets | [3] | 59,452 | 62,000 | |||
Other Assets And Liabilities | ||||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||||
Fair value of plan assets and (liabilities) | [3] | 2,636 | (133) | |||
Accrued (Expenses) Income | ||||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||||
Fair value of plan assets | [3] | (40) | (79) | |||
Level 1 | Pension plans | ||||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||||
Fair value of plan assets | 108,136 | |||||
Level 1 | Equity Securities | Us Companies | ||||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||||
Fair value of plan assets | 65,414 | |||||
Level 1 | Equity Securities | International Companies | ||||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||||
Fair value of plan assets | 665 | |||||
Level 1 | Equity Securities | International Equity Funds | ||||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||||
Fair value of plan assets | [1] | 22,178 | ||||
Level 1 | Equity Securities | Domestic Equity Funds | ||||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||||
Fair value of plan assets | [2] | 19,879 | ||||
Level 2 | Pension plans | ||||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||||
Fair value of plan assets | 262,639 | 49,837 | ||||
Level 2 | Short Term Investments And Cash | ||||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||||
Fair value of plan assets | 34,118 | 19,771 | ||||
Level 2 | Fixed Income Securities | US Treasury Securities | ||||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||||
Fair value of plan assets | 4,581 | 6,538 | ||||
Level 2 | Fixed Income Securities | US Government Agencies Debt Securities | ||||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||||
Fair value of plan assets | 3,561 | 10,531 | ||||
Level 2 | Fixed Income Securities | Domestic Corporate Debt Securities | ||||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||||
Fair value of plan assets | 166,670 | 9,993 | ||||
Level 2 | Fixed Income Securities | International Corporate Bonds | ||||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||||
Fair value of plan assets | 53,709 | |||||
Level 2 | Fixed Income Securities | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||||
Fair value of plan assets | 3,004 | |||||
Other Investments Measured at Net Asset Value | International Equity Funds | ||||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||||
Fair value of plan assets | [1],[4] | 22,878 | ||||
Other Investments Measured at Net Asset Value | Hedge Funds, Equity | ||||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||||
Fair value of plan assets | [4],[5] | 35,054 | ||||
Other Investments Measured at Net Asset Value | Absolute Return Funds | ||||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||||
Fair value of plan assets | [4],[6] | 52,704 | ||||
Other Investments Measured at Contract Value | Guaranteed Insurance Contracts | ||||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||||
Fair value of plan assets | [7],[8] | $ 10,853 | $ 10,457 | |||
[1] | This class includes funds with the principal strategy to invest primarily in long positions in international equity securities. This asset was reclassified from a Level 2 to a Level 1 type for all periods. This asset was incorrectly presented as a Level 2. | |||||
[2] | This class includes funds with the principal strategy to invest primarily in long positions in domestic equity securities. | |||||
[3] | This class includes accrued interest, dividends, and amounts receivable from asset sales and amounts payable for asset purchases. | |||||
[4] | Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. | |||||
[5] | This class invests primarily in hedged equity funds. | |||||
[6] | This class invests primarily in absolute return strategy funds and are reported at NAV. | |||||
[7] | Certain investments, which are fully-benefit responsive investment contracts, are measured at contract value and have not been classified in the fair value hierarchy. | |||||
[8] | This class invests primarily guaranteed insurance contracts through various U.S. insurance companies. |
Plan Asset and Target Asset All
Plan Asset and Target Asset Allocations (Detail) | Dec. 29, 2018 | Dec. 30, 2017 | |
Plan No. 1 | |||
Schedule Of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Percentage of Plan Assets at the Measurement Date | 100.00% | 100.00% | |
Plan No. 1 | Equity Securities | |||
Schedule Of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Target Allocation 2019 | 0.00% | ||
Percentage of Plan Assets at the Measurement Date | 2.50% | 38.60% | |
Plan No. 1 | Fixed Income Securities | |||
Schedule Of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Percentage of Plan Assets at the Measurement Date | 73.70% | 27.10% | |
Plan No. 1 | Fixed Income Securities | Minimum | |||
Schedule Of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Target Allocation 2019 | 90.00% | ||
Plan No. 1 | Fixed Income Securities | Maximum | |||
Schedule Of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Target Allocation 2019 | 100.00% | ||
Plan No. 1 | Other Diversifying Strategies | |||
Schedule Of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Target Allocation 2019 | [1] | 0.00% | |
Percentage of Plan Assets at the Measurement Date | [1] | 15.00% | 28.80% |
Plan No. 1 | Short Term Investments And Cash | |||
Schedule Of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Percentage of Plan Assets at the Measurement Date | 8.80% | 5.50% | |
Plan No. 1 | Short Term Investments And Cash | Minimum | |||
Schedule Of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Target Allocation 2019 | 0.00% | ||
Plan No. 1 | Short Term Investments And Cash | Maximum | |||
Schedule Of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Target Allocation 2019 | 10.00% | ||
Plan No. 2 | Equity Securities | Minimum | |||
Schedule Of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Target Allocation 2019 | 0.00% | ||
Plan No. 2 | Equity Securities | Maximum | |||
Schedule Of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Target Allocation 2019 | 80.00% | ||
Plan No. 2 | Fixed Income Securities | Minimum | |||
Schedule Of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Target Allocation 2019 | 20.00% | ||
Plan No. 2 | Fixed Income Securities | Maximum | |||
Schedule Of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Target Allocation 2019 | 100.00% | ||
Plan No. 2 | Short Term Investments And Cash | Minimum | |||
Schedule Of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Target Allocation 2019 | 0.00% | ||
Plan No. 2 | Short Term Investments And Cash | Maximum | |||
Schedule Of Defined Benefit Plan Asset Allocation Targets [Line Items] | |||
Target Allocation 2019 | 10.00% | ||
[1] | Includes absolute return funds, hedged equity funds, and guaranteed insurance contracts. |
Company Contributions (Detail)
Company Contributions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Defined Contribution and Defined Benefit Plans [Line Items] | |||
Expected company contribution | $ 1,041 | ||
Pension plans | |||
Defined Contribution and Defined Benefit Plans [Line Items] | |||
Contribution of company to company pension plans | 40,971 | $ 1,891 | $ 1,341 |
401K (DC Plan) | |||
Defined Contribution and Defined Benefit Plans [Line Items] | |||
Contribution of company to company pension plans | 1,308 | 376 | 841 |
Required | Pension plans | |||
Defined Contribution and Defined Benefit Plans [Line Items] | |||
Contribution of company to company pension plans | 271 | 286 | 341 |
Discretionary | Pension plans | |||
Defined Contribution and Defined Benefit Plans [Line Items] | |||
Contribution of company to company pension plans | $ 40,700 | $ 1,605 | $ 1,000 |
Benefits Expected to be Paid fr
Benefits Expected to be Paid from Plans Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | ||
Pension plans | ||||
Schedule of Pension and Other Postretirement Benefits Expected Benefit Payments [Line Items] | ||||
Benefits paid | $ 23,843 | $ 24,408 | ||
2,019 | 31,431 | |||
2,020 | 327,280 | |||
2,021 | 2,630 | |||
2,022 | 2,715 | |||
2,023 | 2,585 | |||
2024 – 2028 | 11,135 | |||
Pension plans | Includes Plan No 1 and No 2 Single Lump Sum | ||||
Schedule of Pension and Other Postretirement Benefits Expected Benefit Payments [Line Items] | ||||
Benefits paid | [1] | $ 40,864 | ||
Pension plans | Includes Plan No 1 and No 2 Single Lump Sum | ||||
Schedule of Pension and Other Postretirement Benefits Expected Benefit Payments [Line Items] | ||||
Benefits paid | [2] | 38,776 | ||
Pension plans | Includes Plan No 1 and No 2 Single Lump Sum | ||||
Schedule of Pension and Other Postretirement Benefits Expected Benefit Payments [Line Items] | ||||
Benefits paid | [3] | 48,722 | ||
Postretirement Benefit Plans | ||||
Schedule of Pension and Other Postretirement Benefits Expected Benefit Payments [Line Items] | ||||
Benefits paid | 2,131 | 706 | ||
Postretirement Benefit Plans | Employer Gross Contribution | ||||
Schedule of Pension and Other Postretirement Benefits Expected Benefit Payments [Line Items] | ||||
Benefits paid | 1,308 | $ 376 | $ 841 | |
2,019 | 1,041 | |||
2,020 | 867 | |||
2,021 | 812 | |||
2,022 | 732 | |||
2,023 | 696 | |||
2024 – 2028 | $ 3,608 | |||
[1] | Includes $15.7 million and $1.6 million from Plan No. 1 and Plan No. 2, respectively, paid as lump sums. | |||
[2] | Includes $14.4 million and $1.6 million from Plan No. 1 and Plan No. 2, respectively, paid as lump sums. | |||
[3] | Includes $24.9 million and $1.5 million from Plan No. 1 and Plan No. 2, respectively, paid as lump sums. |
Benefits Expected to be Paid _2
Benefits Expected to be Paid from Plans Assets (Parenthetical) (Detail) - Includes Plan No 1 and No 2 Single Lump Sum - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Lump Sums Plan No. 1 | |||
Schedule of Pension and Other Postretirement Benefits Expected Benefit Payments [Line Items] | |||
Distributions from existing plan assets | $ 15.7 | ||
Lump Sums Plan No. 1 | |||
Schedule of Pension and Other Postretirement Benefits Expected Benefit Payments [Line Items] | |||
Distributions from existing plan assets | $ 14.4 | ||
Lump Sums Plan No. 1 | |||
Schedule of Pension and Other Postretirement Benefits Expected Benefit Payments [Line Items] | |||
Distributions from existing plan assets | $ 24.9 | ||
Lump Sums Plan No. 2 | |||
Schedule of Pension and Other Postretirement Benefits Expected Benefit Payments [Line Items] | |||
Distributions from existing plan assets | $ 1.6 | ||
Lump Sums Plan No. 2 | |||
Schedule of Pension and Other Postretirement Benefits Expected Benefit Payments [Line Items] | |||
Distributions from existing plan assets | $ 1.6 | ||
Lump Sums Plan No. 2 | |||
Schedule of Pension and Other Postretirement Benefits Expected Benefit Payments [Line Items] | |||
Distributions from existing plan assets | $ 1.5 |
Summary of Effect of One Percen
Summary of Effect of One Percent Point Change in Assumed Health Care Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |||
One-Percentage Point Decrease, Effect on total of service and interest cost | $ (52) | $ (47) | $ (58) |
One-Percentage Point Decrease, Effect on postretirement benefit obligation | (467) | (473) | (427) |
One-Percentage Point Increase, Effect on total of service and interest cost | 61 | 55 | 67 |
One-Percentage Point Increase, Effect on postretirement benefit obligation | $ 524 | $ 533 | $ 480 |
Employer Contributions (Detail)
Employer Contributions (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | ||
IAM National Pension Fund | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
EIN | 516,031,295 | |||
Pension Plan No. | 2 | |||
Pension Protection Act Zone Status | Green | |||
FIP/RP Status Pending/ Implemented | No | |||
Contributions | $ 108 | $ 139 | $ 121 | |
Surcharge Imposed | No | |||
Expiration Date of Collective Bargaining Agreement | Apr. 30, 2021 | |||
Retail Wholesale And Department Store International Union And Industry Pension Fund | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
EIN | 630,708,442 | |||
Pension Plan No. | 1 | |||
Pension Protection Act Zone Status | Red | |||
FIP/RP Status Pending/ Implemented | Implemented | |||
Contributions | $ 159 | 157 | 156 | |
Surcharge Imposed | No | |||
Expiration Date of Collective Bargaining Agreement | Aug. 14, 2021 | |||
Western Conference Of Teamsters Pension Trust | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
EIN | [1] | 916,145,047 | ||
Pension Plan No. | [1] | 1 | ||
Pension Protection Act Zone Status | [1] | Green | ||
FIP/RP Status Pending/ Implemented | [1] | No | ||
Contributions | [1] | $ 293 | 276 | 233 |
Surcharge Imposed | [1] | No | ||
Expiration Date of Collective Bargaining Agreement | [1] | Feb. 4, 2022 | ||
BC&T International Pension Fund | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
EIN | [1] | 526,118,572 | ||
Pension Plan No. | [1] | 1 | ||
FIP/RP Status Pending/ Implemented | [1] | Implemented | ||
Contributions | [1] | $ 220 | $ 965 | $ 1,194 |
Surcharge Imposed | [1] | Yes | ||
Expiration Date of Collective Bargaining Agreement | [1] | Oct. 25, 2020 | ||
[1] | The union employees withdrew from the fund effective November 1, 2017. The collective bargaining agreement is still in effect. |
Summary of Total Cost and Emplo
Summary of Total Cost and Employer Contributions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
401(k) Retirement Savings Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total cost and employer contributions | $ 25,523 | $ 28,346 | $ 27,057 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Income Taxes [Line Items] | ||||||
Corporate income tax rate | 21.00% | 35.00% | 35.00% | |||
Income tax benefit recorded as estimate to the impact of the act | $ 48,160,000 | $ 5,575,000 | $ 48,160,000 | |||
Adjustments in discrete tax benefit | 5,600,000 | |||||
Adjustments in reduction to federal income tax payable | 16,400,000 | |||||
Increase to federal deferred tax liabilities | 10,800,000 | |||||
Adjustments to provisional estimate | $ 0 | |||||
Gross amount of unrecognized tax benefits | 750,000 | 1,259,000 | 750,000 | 1,259,000 | $ 1,754,000 | $ 727,000 |
Unrecognized tax benefits that would impact effective tax rate | 800,000 | 800,000 | ||||
Unrecognized tax benefit, accrued interest | 100,000 | $ 100,000 | 100,000 | $ 100,000 | ||
Domestic Tax Authority | ||||||
Income Taxes [Line Items] | ||||||
Federal net operating loss carryforwards | 3,700,000 | 3,700,000 | ||||
State and Local Jurisdiction | ||||||
Income Taxes [Line Items] | ||||||
State net operating loss carryforwards | 6,200,000 | 6,200,000 | ||||
Credit carryforwards | 4,100,000 | $ 4,100,000 | ||||
Operating loss carryforwards expiration date | Dec. 31, 2037 | |||||
Unrecognized tax benefits that would impact effective tax rate | $ 200,000 | $ 200,000 |
Components of Income Tax Expens
Components of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Current Taxes: Federal | $ 11,642 | $ 53,076 | $ 86,235 |
Current Taxes: State | 6,702 | 7,403 | 13,983 |
Current Taxes: Total | 18,344 | 60,479 | 100,218 |
Deferred Taxes: Federal | 21,762 | (59,385) | (11,656) |
Deferred Taxes: State | (105) | (1,921) | (2,801) |
Deferred Income Taxes, Total | 21,657 | (61,306) | (14,457) |
Income tax expense (benefit) | $ 40,001 | $ (827) | $ 85,761 |
Reconciliation of Effective Tax
Reconciliation of Effective Tax Amount (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 30, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | ||
Income Tax Disclosure [Abstract] | |||||
Tax at U.S. federal income tax rate | $ 41,404 | $ 52,253 | $ 87,338 | ||
State income taxes, net of federal income tax benefit | 5,213 | 3,564 | 7,266 | ||
Tax reform impact | $ (48,160) | (5,575) | (48,160) | ||
Section 199 qualifying production activities benefit | (5,422) | (8,007) | |||
Net share-based payments (windfalls) shortfalls | [1] | 1,639 | (1,001) | ||
Other | (2,680) | (2,061) | (836) | ||
Income tax expense (benefit) | $ 40,001 | $ (827) | $ 85,761 | ||
[1] | Applied beginning in fiscal 2017 upon adoption of new guidance. |
Components of Deferred Tax Asse
Components of Deferred Tax Assets and (Liabilities) (Detail) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Income Tax Disclosure [Abstract] | ||
Self-insurance | $ 5,208 | $ 4,972 |
Compensation and employee benefits | 8,718 | 8,836 |
Deferred income | 8,867 | 8,705 |
Loss and credit carryforwards | 14,027 | 13,453 |
Equity-based compensation | 4,646 | 6,831 |
Hedging | 1,397 | 2,754 |
Pension and postretirement benefits | 10,764 | 13,344 |
Other | 9,639 | 9,657 |
Deferred tax assets valuation allowance | (364) | (111) |
Deferred tax assets | 62,902 | 68,441 |
Depreciation | (59,294) | (47,552) |
Intangibles | (104,380) | (101,890) |
Other | (1,886) | (1,975) |
Deferred tax liabilities | (165,560) | (151,417) |
Net deferred tax liability | $ (102,658) | $ (82,976) |
Reconciliation of Total Amounts
Reconciliation of Total Amounts of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefit at beginning of fiscal year | $ 1,259 | $ 1,754 | $ 727 |
Gross increases | 1,488 | ||
Lapses of statutes of limitations | (509) | (495) | (461) |
Unrecognized tax benefit at end of fiscal year | $ 750 | $ 1,259 | $ 1,754 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Sep. 12, 2018USD ($) | Sep. 10, 2018USD ($) | Sep. 07, 2018USD ($) | Sep. 05, 2018USD ($) | Mar. 23, 2018USD ($) | Jun. 30, 2017USD ($) | Apr. 10, 2017USD ($) | Mar. 13, 2017USD ($) | Dec. 29, 2018USD ($)Lawsuits | Dec. 30, 2017USD ($) |
Loss Contingencies [Line Items] | ||||||||||
Self-insurance reserves, current liabilities | $ 29,400,000 | $ 30,100,000 | ||||||||
Alleged complaints | Lawsuits | 26 | |||||||||
Class and / or Collective action treatment | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Alleged complaints | Lawsuits | 22 | |||||||||
Individual claims and do not seek class or collective action treatment | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Alleged complaints | Lawsuits | 4 | |||||||||
Plaintiffs’ motions for class certification | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Alleged complaints | Lawsuits | 13 | |||||||||
Alleges a representative claim under the California Private Attorney General Act | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Alleged complaints | Lawsuits | 1 | |||||||||
Long - Tennessee | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Legal settlement | $ 9,000,000 | |||||||||
Lawsuit filing date | 4/20/2017 | |||||||||
Long - Tennessee | Settlement Funds | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Legal settlement | 5,400,000 | |||||||||
Long - Tennessee | Attorneys Fees | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Legal settlement | $ 3,600,000 | |||||||||
North Carolina Class Action | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Legal settlement | $ 9,000,000 | |||||||||
Lawsuit filing date | 9/12/2012 | |||||||||
North Carolina Class Action | Settlement Funds | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Legal settlement | 5,200,000 | |||||||||
North Carolina Class Action | Attorneys Fees | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Legal settlement | $ 3,800,000 | |||||||||
Connecticut Class Action | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Legal settlement | $ 1,250,000 | |||||||||
Lawsuit filing date | 1/6/2015 | |||||||||
Tennessee Class Action | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Legal settlement | $ 250,000 | |||||||||
Lawsuit filing date | 7/2/2015 | |||||||||
Preliminary Approval of Class Action | Coyle - Arizona | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Legal settlement | $ 4,300,000 | |||||||||
Lawsuit filing date | 7/20/2015 | |||||||||
Preliminary Approval of Class Action | Settlement Funds | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Legal settlement | 1,200,000 | |||||||||
Preliminary Approval of Class Action | Attorneys Fees | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Legal settlement | 2,900,000 | |||||||||
Preliminary Approval of Class Action | Incentive Payments | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Legal settlement | $ 200,000 | |||||||||
Rosinbaum - NorthCarolina | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Lawsuit filing date | 12/1/2015 | |||||||||
McCurley - Carolina | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Legal settlement | $ 1,500,000 | |||||||||
Lawsuit filing date | 1/20/2016 | |||||||||
McCurley - Carolina | Settlement Funds | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Legal settlement | 800,000 | |||||||||
McCurley - Carolina | Attorneys Fees | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Legal settlement | 600,000 | |||||||||
McCurley - Carolina | Incentive Payments | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Legal settlement | $ 100,000 | |||||||||
Neff - Vermont | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Lawsuit filing date | 12/2/2015 | |||||||||
Noll - Maine | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Lawsuit filing date | 12/3/2015 | |||||||||
Zapata - Texas | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Legal settlement | $ 740,700 | |||||||||
Lawsuit filing date | 3/14/2016 | |||||||||
Rodriguez - Texas | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Lawsuit filing date | 1/28/2016 | |||||||||
Richard - Louisiana | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Lawsuit filing date | 10/21/2015 | |||||||||
Carr - Pennsylvania | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Lawsuit filing date | 12/1/2015 | |||||||||
Boulange Pennsylvania | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Lawsuit filing date | 3/25/2016 | |||||||||
Medrano - Mexico | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Lawsuit filing date | 4/27/2016 | |||||||||
Schucker - New York | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Legal settlement | $ 1,300,000 | |||||||||
Lawsuit filing date | 5/9/2016 | |||||||||
Schucker - New York | Settlement Funds | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Legal settlement | 400,000 | |||||||||
Schucker - New York | Attorneys Fees | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Legal settlement | 900,000 | |||||||||
Schucker - New York | Incentive Payments | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Legal settlement | $ 100,000 | |||||||||
Martins Florida | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Lawsuit filing date | 11/8/2016 | |||||||||
Bryant - Texas | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Lawsuit filing date | 10/9/2017 | |||||||||
Green - Alabama | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Lawsuit filing date | 5/11/2017 | |||||||||
Hall - Alabama | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Lawsuit filing date | 6/5/2017 | |||||||||
Robbins - Mississippi | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Lawsuit filing date | 7/31/2017 |
Information Regarding Operation
Information Regarding Operations in Reportable Segments (Detail) - USD ($) $ in Thousands | Jan. 14, 2017 | Dec. 29, 2018 | Oct. 06, 2018 | Jul. 14, 2018 | Dec. 30, 2017 | Oct. 07, 2017 | Jul. 15, 2017 | [1] | Dec. 31, 2016 | Oct. 08, 2016 | Jul. 16, 2016 | Apr. 21, 2018 | Apr. 22, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | ||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Sales | $ 880,667 | $ 923,449 | [1] | $ 941,283 | [1] | $ 873,623 | $ 932,822 | [1] | $ 926,639 | $ 1,206,453 | [1] | $ 1,187,649 | [1] | $ 3,951,852 | $ 3,920,733 | $ 3,926,885 | ||||||
Gain on divestiture | $ 28,875 | $ 28,875 | 28,875 | |||||||||||||||||||
Multi-employer pension plan withdrawal costs | 18,268 | 2,322 | 2,322 | 18,268 | ||||||||||||||||||
Loss on inferior ingredients | 1,219 | (1,891) | 3,884 | 3,212 | ||||||||||||||||||
Restructuring and related impairment charges | 9,767 | 104,130 | ||||||||||||||||||||
Impairment of assets | 3,516 | 2,483 | 5,999 | 24,877 | ||||||||||||||||||
Depreciation and amortization | 144,124 | 146,719 | 140,869 | |||||||||||||||||||
Income from operations | 212,344 | 161,003 | 264,898 | |||||||||||||||||||
Interest expense | 35,686 | 36,557 | 34,905 | |||||||||||||||||||
Interest income | (27,755) | (22,938) | (20,552) | |||||||||||||||||||
Pension plan settlement loss | $ 1,148 | $ 930 | $ 1,035 | $ 1,619 | $ 3,030 | $ 173 | $ 1,832 | $ 4,641 | $ 4,668 | 7,781 | 4,649 | 6,646 | ||||||||||
Other components of net periodic pension and postretirement benefits credit | (529) | (6,558) | (5,638) | |||||||||||||||||||
Income before income taxes | 197,161 | 149,293 | 249,537 | |||||||||||||||||||
Capital expenditures | 99,422 | 75,232 | 101,727 | |||||||||||||||||||
Unallocated Corporate Costs | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Restructuring and related impairment charges | 252 | 3,982 | ||||||||||||||||||||
Impairment of assets | 3,516 | |||||||||||||||||||||
Depreciation and amortization | [2] | 300 | (408) | 722 | ||||||||||||||||||
Income from operations | [3] | (64,812) | (95,974) | (53,549) | ||||||||||||||||||
Capital expenditures | [4] | 1,704 | 3,982 | 23,266 | ||||||||||||||||||
DSD Segment | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Sales | 3,340,047 | 3,318,563 | 3,284,177 | |||||||||||||||||||
Loss on inferior ingredients | 1,655 | |||||||||||||||||||||
DSD Segment | Operating Segments | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Sales | 3,423,935 | 3,383,564 | 3,347,616 | |||||||||||||||||||
Multi-employer pension plan withdrawal costs | 2,322 | 18,268 | ||||||||||||||||||||
Loss on inferior ingredients | 1,655 | |||||||||||||||||||||
Restructuring and related impairment charges | 8,121 | 80,026 | ||||||||||||||||||||
Impairment of assets | 2,483 | 24,877 | ||||||||||||||||||||
Depreciation and amortization | 122,300 | 126,485 | 120,009 | |||||||||||||||||||
Income from operations | 239,510 | 202,239 | 259,982 | |||||||||||||||||||
Capital expenditures | 82,789 | 64,317 | 61,669 | |||||||||||||||||||
DSD Segment | Intersegment Eliminations | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Sales | (83,888) | (65,001) | (63,439) | |||||||||||||||||||
Warehouse Segment | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Sales | 611,805 | 602,170 | 642,708 | |||||||||||||||||||
Loss on inferior ingredients | 1,557 | |||||||||||||||||||||
Warehouse Segment | Operating Segments | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Sales | 787,431 | 767,844 | 787,233 | |||||||||||||||||||
Gain on divestiture | 28,875 | |||||||||||||||||||||
Loss on inferior ingredients | 1,557 | |||||||||||||||||||||
Restructuring and related impairment charges | 1,394 | 20,122 | ||||||||||||||||||||
Depreciation and amortization | 21,524 | 20,642 | 20,138 | |||||||||||||||||||
Income from operations | 37,646 | 54,738 | 58,465 | |||||||||||||||||||
Capital expenditures | 14,929 | 6,933 | 16,792 | |||||||||||||||||||
Warehouse Segment | Intersegment Eliminations | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Sales | $ (175,626) | $ (165,674) | $ (144,525) | |||||||||||||||||||
[1] | As disclosed in Note 4, Financial Statement Revisions, the company reported cash receipts and payments for the repurchase and sale of territories and cash paid at issuance of notes receivable at net when these transactions should have been disaggregated. We concluded that the errors were not material to any of these prior periods that were impacted. The error resulted in an understatement of cash flows from operating activities and cash flows used in investing activities of $5.9 million, $12.1 million and $12.8 million, respectively, for the sixteen, twenty-eight, and forty-week amounts included in the first, second, and third quarters of fiscal 2017, respectively. These amounts were revised upon subsequent presentation of these financial statements. | |||||||||||||||||||||
[2] | Represents costs allocated to the company’s corporate head office. | |||||||||||||||||||||
[3] | Represents costs allocated to the company’s corporate head office and pension settlement loss. | |||||||||||||||||||||
[4] | Represents the company’s corporate head office assets including primarily cash and cash equivalents. |
Assets by Segment (Detail)
Assets by Segment (Detail) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 | |
Assets: | |||
Assets | $ 2,845,537 | $ 2,659,724 | |
Operating Segments | DSD Segment | |||
Assets: | |||
Assets | 2,419,019 | 2,270,179 | |
Operating Segments | Warehouse Segment | |||
Assets: | |||
Assets | 353,220 | 296,157 | |
Other | |||
Assets: | |||
Assets | [1] | $ 73,298 | $ 93,388 |
[1] | Represents the company’s corporate head office assets including primarily cash and cash equivalents. |
Quarterly Financial Information
Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 29, 2018 | Oct. 06, 2018 | [1] | Jul. 14, 2018 | [1] | Dec. 30, 2017 | Oct. 07, 2017 | [1] | Jul. 15, 2017 | [1] | Apr. 21, 2018 | [1] | Apr. 22, 2017 | [1] | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Sales | $ 880,667 | $ 923,449 | $ 941,283 | $ 873,623 | $ 932,822 | $ 926,639 | $ 1,206,453 | $ 1,187,649 | $ 3,951,852 | $ 3,920,733 | $ 3,926,885 | ||||||||
Materials, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately below) | 467,155 | [2] | 485,680 | [2] | 488,871 | [2] | 456,895 | [2] | 476,264 | [2] | 468,246 | [2] | 625,122 | [2] | 608,068 | [2] | 2,066,828 | 2,009,473 | 2,026,859 |
Net income (loss) | $ 20,841 | $ 39,630 | $ 45,442 | $ 78,533 | $ (33,571) | $ 44,740 | $ 51,247 | $ 60,418 | $ 157,160 | $ 150,120 | $ 163,776 | ||||||||
Basic net income (loss) per share | $ 0.10 | $ 0.19 | $ 0.22 | $ 0.37 | $ (0.16) | $ 0.21 | $ 0.24 | $ 0.29 | $ 0.74 | $ 0.72 | $ 0.79 | ||||||||
Diluted net income (loss) per share | $ 0.10 | $ 0.19 | $ 0.21 | $ 0.37 | $ (0.16) | $ 0.21 | $ 0.24 | $ 0.29 | $ 0.74 | $ 0.71 | $ 0.78 | ||||||||
[1] | As disclosed in Note 4, Financial Statement Revisions, the company reported cash receipts and payments for the repurchase and sale of territories and cash paid at issuance of notes receivable at net when these transactions should have been disaggregated. We concluded that the errors were not material to any of these prior periods that were impacted. The error resulted in an understatement of cash flows from operating activities and cash flows used in investing activities of $5.9 million, $12.1 million and $12.8 million, respectively, for the sixteen, twenty-eight, and forty-week amounts included in the first, second, and third quarters of fiscal 2017, respectively. These amounts were revised upon subsequent presentation of these financial statements. | ||||||||||||||||||
[2] | The company does not report gross margin. This line item presents our material, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately) under an alternative presentation. |
Quarterly Financial Informati_2
Quarterly Financial Information (parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | |||
Oct. 07, 2017 | Jul. 15, 2017 | Apr. 22, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Schedule Of Quarterly Financial Information [Line Items] | ||||||
Understatement of cash flows from operating activities | $ 295,893 | $ 297,389 | $ 356,562 | |||
Understatement of cash flows used in investing activities | $ (301,805) | $ (35,395) | (76,714) | |||
Revisions | ||||||
Schedule Of Quarterly Financial Information [Line Items] | ||||||
Understatement of cash flows from operating activities | $ (12,800) | $ (12,100) | $ (5,900) | 6,667 | ||
Understatement of cash flows used in investing activities | $ (12,800) | $ (12,100) | $ (5,900) | $ (6,667) |
Financial Results that Impact C
Financial Results that Impact Comparability by Quarter (Detail) - USD ($) $ in Thousands | Jan. 14, 2017 | Dec. 29, 2018 | Oct. 06, 2018 | Jul. 14, 2018 | Dec. 30, 2017 | Oct. 07, 2017 | Dec. 31, 2016 | Oct. 08, 2016 | Jul. 16, 2016 | Apr. 21, 2018 | Apr. 22, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Loss (recovery) on inferior ingredients | $ 1,219 | $ (1,891) | $ 3,884 | $ 3,212 | ||||||||||
Gain on divestiture | $ (28,875) | $ (28,875) | $ (28,875) | |||||||||||
Restructuring and related impairment charges | 7,210 | 497 | 801 | $ 3,581 | $ 100,549 | $ 1,259 | 9,767 | 104,130 | ||||||
Multi-employer pension plan withdrawal costs | 18,268 | 2,322 | 2,322 | 18,268 | ||||||||||
Pension plan settlement loss | 1,148 | $ 930 | $ 1,035 | 1,619 | $ 3,030 | $ 173 | $ 1,832 | $ 4,641 | 4,668 | 7,781 | 4,649 | $ 6,646 | ||
Income tax benefit resulting from tax reform | $ (48,160) | (5,575) | $ (48,160) | |||||||||||
Impairment of assets | $ 3,516 | $ 2,483 | $ 5,999 | $ 24,877 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Dividend Declared - Subsequent Event | Feb. 15, 2019$ / shares |
Subsequent Event [Line Items] | |
Dividend declaration date | Feb. 15, 2019 |
Dividend per share on common stock | $ 0.18 |
Dividend to be paid date | Mar. 15, 2019 |
Dividend record date | Mar. 1, 2019 |