Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Mar. 09, 2015 | Jul. 05, 2014 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 3-Jan-15 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ck0001323891 | ||
Entity Registrant Name | AMERICAN TIRE DISTRIBUTORS HOLDINGS, INC. | ||
Entity Central Index Key | 1323891 | ||
Current Fiscal Year End Date | -2 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | No | ||
Entity Voluntary Filers | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 50 | ||
Entity Public Float | $0 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $35,735 | $35,760 |
Accounts receivable, net of allowance for doubtful accounts of $2,603 and $2,169 in fiscal 2014 and 2013, respectively | 387,549 | 291,547 |
Inventories | 1,061,067 | 786,433 |
Deferred income taxes | 26,802 | 15,719 |
Income tax receivable | 10,822 | 369 |
Assets held for sale | 799 | 910 |
Other current assets | 27,118 | 19,684 |
Total current assets | 1,549,892 | 1,150,422 |
Property and equipment, net | 220,466 | 147,856 |
Goodwill | 733,254 | 504,333 |
Other intangible assets, net | 1,042,718 | 713,294 |
Other assets | 52,641 | 43,421 |
Total assets | 3,598,971 | 2,559,326 |
Current liabilities: | ||
Accounts payable | 742,682 | 563,691 |
Accrued expenses | 100,674 | 47,723 |
Current maturities of long-term debt | 9,768 | 564 |
Total current liabilities | 853,124 | 611,978 |
Long-term debt | 1,806,347 | 966,436 |
Deferred income taxes | 291,106 | 270,576 |
Other liabilities | 24,442 | 17,362 |
Commitments and contingencies (See Note 14) | ||
Stockholder's equity: | ||
Common stock, par value $.01 per share; 1,000 shares authorized; 50 shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 813,364 | 758,972 |
Accumulated earnings (deficit) | -151,497 | -56,898 |
Accumulated other comprehensive income (loss) | -37,915 | -9,100 |
Total stockholder's equity | 623,952 | 692,974 |
Total liabilities and stockholder's equity | $3,598,971 | $2,559,326 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, allowance for doubtful accounts | $2,603 | $2,169 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, shares issued | 50 | 50 |
Common stock, shares outstanding | 50 | 50 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Net sales | $5,030,698 | $3,836,569 | $3,454,564 |
Cost of goods sold, excluding depreciation included in selling, general and administrative expenses below | 4,178,727 | 3,185,709 | 2,886,121 |
Selling, general and administrative expenses | 778,876 | 569,234 | 498,962 |
Management fees | 19,886 | 5,753 | 7,446 |
Transaction expenses | 53,616 | 6,719 | 5,246 |
Operating income (loss) | -407 | 69,154 | 56,789 |
Other income (expense): | |||
Interest expense | -125,590 | -74,284 | -72,918 |
Loss on extinguishment of debt | -17,195 | ||
Other, net | -4,770 | -5,172 | -3,895 |
Income (loss) from continuing operations before income taxes | -147,962 | -10,302 | -20,024 |
Income tax provision (benefit) | -53,676 | -3,945 | -5,678 |
Income (loss) from continuing operations | -94,286 | -6,357 | -14,346 |
Income (loss) from discontinued operations, net of tax | -313 | ||
Net income (loss) | -94,599 | -6,357 | -14,346 |
Other comprehensive income (loss), net of tax | |||
Foreign currency translation | -28,815 | -9,131 | -344 |
Unrealized gain (loss) on rabbi trust assets, net of income tax provision (benefit) | 0 | 174 | 138 |
Other comprehensive income (loss), net of tax | -28,815 | -8,957 | -206 |
Comprehensive income (loss) | ($123,414) | ($15,314) | ($14,552) |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Unrealized gain (loss) on rabbi trust assets, income tax provision (benefit) | $0 | $114 | $90 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-In Capital | Accumulated Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) |
In Thousands, except Share data | USD ($) | USD ($) | USD ($) | USD ($) | |
Beginning balance at Dec. 31, 2011 | $655,819 | $691,951 | ($36,195) | $63 | |
Beginning balance (in shares) at Dec. 31, 2011 | 50 | ||||
Net income (loss) | -14,346 | -14,346 | |||
Unrealized gain (loss) on rabbi trust assets, net of income tax provision (benefit) of $0, $114 and $90, respectively | 138 | 138 | |||
Foreign currency translation | -344 | -344 | |||
Equity contributions | 60,038 | 60,038 | |||
Stock-based compensation | 4,349 | 4,349 | |||
Ending balance at Dec. 29, 2012 | 705,654 | 756,338 | -50,541 | -143 | |
Ending balance (in shares) at Dec. 29, 2012 | 50 | ||||
Net income (loss) | -6,357 | -6,357 | |||
Unrealized gain (loss) on rabbi trust assets, net of income tax provision (benefit) of $0, $114 and $90, respectively | 174 | 174 | |||
Foreign currency translation | -9,131 | -9,131 | |||
Stock-based compensation | 2,634 | 2,634 | |||
Ending balance at Dec. 28, 2013 | 692,974 | 758,972 | -56,898 | -9,100 | |
Ending balance (in shares) at Dec. 28, 2013 | 50 | 50 | |||
Net income (loss) | -94,599 | -94,599 | |||
Unrealized gain (loss) on rabbi trust assets, net of income tax provision (benefit) of $0, $114 and $90, respectively | 0 | ||||
Foreign currency translation | -28,815 | -28,815 | |||
Equity contributions | 50,000 | 50,000 | |||
Stock-based compensation | 4,392 | 4,392 | |||
Ending balance at Jan. 03, 2015 | $623,952 | $813,364 | ($151,497) | ($37,915) | |
Ending balance (in shares) at Jan. 03, 2015 | 50 | 50 |
Consolidated_Statement_of_Stoc1
Consolidated Statement of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Unrealized gain (loss) on rabbi trust assets, tax | $0 | $114 | $90 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Cash flows from operating activities: | |||
Net income (loss) | ($94,599) | ($6,357) | ($14,346) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) continuing operating activities: | |||
(Income) loss from discontinued operations, net of tax | 102 | ||
Loss on disposal of discontinued operations, net of tax | 211 | ||
Loss on extinguishment of debt | 17,195 | ||
Call premium and interest paid on redemption of Senior Secured Notes | -16,303 | ||
Depreciation and amortization | 152,553 | 105,458 | 89,167 |
Amortization of other assets | 6,525 | 4,456 | 7,487 |
Provision (benefit) for deferred income taxes | -48,917 | -25,657 | -11,879 |
Provision for doubtful accounts | 1,489 | 2,237 | 1,996 |
Non-cash inventory step-up amortization | 35,923 | 5,379 | 4,074 |
Stock-based compensation | 4,392 | 2,634 | 4,349 |
Non-cash changes in fair value of contingent consideration liabilities | -5,142 | ||
Other, net | 7,002 | 3,292 | 2,601 |
Change in operating assets and liabilities (excluding impact from acquisitions): | |||
Accounts receivable | 24,850 | 10,101 | 6,434 |
Inventories | -29,796 | -30,339 | -33,470 |
Income tax receivable | -10,681 | 644 | 1,232 |
Other current assets | -23 | 1,160 | -5,971 |
Accounts payable and accrued expenses | -16,890 | 29,916 | -38,257 |
Other, net | 2,236 | 6,807 | -3,391 |
Net cash provided by (used in) continuing operating activities | 30,127 | 109,731 | 10,026 |
Net cash provided by (used in) discontinued operations | 1,580 | ||
Net cash provided by (used in) operating activities | 31,707 | 109,731 | 10,026 |
Cash flows from investing activities: | |||
Acquisitions, net of cash acquired | -865,003 | -77,017 | -115,334 |
Purchase of property and equipment | -72,149 | -47,127 | -52,388 |
Purchase of assets held for sale | -988 | -2,239 | -3,939 |
Proceeds from dispoal of discontinued operations | 3,854 | ||
Proceeds from sale of assets held for sale | 784 | 7,751 | 3,738 |
Proceeds from sale of property and equipment | 471 | 197 | 102 |
Net cash provided by (used in) continuing investing activities | -933,031 | -118,435 | -167,821 |
Net cash provided by (used in) discontinued investing activities | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | -933,031 | -118,435 | -167,821 |
Cash flows from financing activities: | |||
Borrowings from revolving credit facility | 4,380,548 | 2,973,584 | 3,333,642 |
Repayments of revolving credit facility | -4,222,869 | -2,955,576 | -3,217,298 |
Outstanding checks | 30,754 | 6,599 | -1,754 |
Payments of other long-term debt | -8,272 | -503 | -1,987 |
Payments of deferred financing costs | -15,951 | -1,106 | -3,779 |
Payment for Senior Secured Notes redemption | -246,900 | ||
Payment of contingent consideration liabilities | -1,154 | ||
Proceeds from issuance of long-term debt | 940,313 | ||
Equity contribution | 50,000 | 60,000 | |
Net cash provided by (used in) continuing financing activities | 906,469 | 22,998 | 168,824 |
Net cash provided by (used in) discontinued financing activities | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | 906,469 | 22,998 | 168,824 |
Effect of exchange rate changes on cash | -5,170 | -4,485 | -57 |
Net increase (decrease) in cash and cash equivalents | -25 | 9,809 | 10,972 |
Cash and cash equivalents-beginning of period | 35,760 | 25,951 | 14,979 |
Cash and cash equivalents-end of period | 35,735 | 35,760 | 25,951 |
Supplemental disclosures of cash flow information: | |||
Cash payments for interest, net of capitalized interest | 116,774 | 66,623 | 63,221 |
Cash payments (receipts) for taxes, net | 13,282 | 23,740 | 6,510 |
Supplemental disclosures of noncash activities: | |||
Capital expenditures financed by debt | $128 | $515 |
Description_of_Company
Description of Company | 12 Months Ended |
Jan. 03, 2015 | |
Description of Company | 1. Description of Company: |
American Tire Distributors Holdings, Inc. (also referred to herein as “Holdings”) is a Delaware corporation that owns 100% of the issued and outstanding capital stock of American Tire Distributors, Inc. (“ATDI”), a Delaware corporation. Holdings has no significant assets or operations other than its ownership of ATDI. The operations of ATDI and its subsidiaries constitute the operations of Holdings presented under U.S. Generally Accepted Accounting Principles (“GAAP”). Unless the context otherwise requires, “Company” herein refers to Holdings and its consolidated subsidiaries. On May 28, 2010, pursuant to an Agreement and Plan of Merger, dated as of April 20, 2010, the Company was acquired by TPG Capital, L.P. (“TPG” or the “Sponsor”) and certain co-investors (the “TPG Merger”). | |
The Company is primarily engaged in the wholesale distribution of tires, custom wheels and accessories, and related tire supplies and tools, representing 97.7% or $4,916.4 million, 1.6% or $82.8 million and 0.7% or $34.0 million, respectively, of our net sales. Operating as one operating and reportable segment through a network of 142 distribution centers, including three redistribution centers in the United States, the Company offers access to an extensive breadth and depth of inventory, representing approximately 50,000 stock-keeping units (SKUs) to more than 75,000 customers. The Company’s customer base is comprised primarily of independent tire dealers with the remainder of other customers representing various national and corporate accounts. The Company serves a majority of the contiguous United States as well as Canada. During fiscal 2014, the Company’s largest customer and top ten customers accounted for 2.9% and 10.3%, respectively, of its net sales. | |
The Company’s fiscal year is based on either a 52- or 53-week period ending on the Saturday closest to each December 31. Therefore, the financial results of 53-week fiscal years will not be exactly comparable to the prior and subsequent 52-week fiscal years. The fiscal year ended January 3, 2015 contains operating results for 53 weeks while the fiscal years ended December 28, 2013 and December 29, 2012 each contain operating results for 52 weeks. It should be noted that the Company and its recently acquired Hercules subsidiary, as defined below, have different year-end reporting dates. Hercules has a December 31 year-end reporting date. There were no significant changes to the business subsequent to Hercules’ fiscal period end that would have a material impact on the consolidated financial statements as of and for the quarter and twelve months ended January 3, 2015. Terry’s Tire, Trail Tire, Extreme Wheel, Kirks Tire, RTD Edmonton and RTD Calgary, each as defined below, each converted to the Company’s quarter-end reporting date during the quarter ended October 4, 2014. The impact from these conversions on the consolidated financial statements was not material. It should be noted that, prior to fiscal 2013, the Company and its TriCan Tire Distributors (“TriCan”) subsidiary had different year-end reporting dates. For fiscal 2012, TriCan had a calendar year-end reporting date of December 31. The impact from this difference on the consolidated financial statements was not material. TriCan converted to the Company’s fiscal year reporting date during fiscal 2013. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||
Jan. 03, 2015 | |||||
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies: | ||||
A summary of significant accounting policies used in the preparation of the accompanying financial statements follows: | |||||
Basis of Preparation | |||||
The accompanying consolidated financial statements reflect the consolidated operations of the Company and have been prepared in accordance with GAAP as defined by the Financial Accounting Standards Board (“FASB”) within the FASB Accounting Standards Codification (“FASB ASC”). In the opinion of management, the accompanying consolidated financial statements contain all adjustments, which include normal recurring adjustments, necessary to present fairly the consolidated results for the periods presented. | |||||
Principles of Consolidation | |||||
The accompanying consolidated financial statements include the accounts of Holdings and all of its subsidiaries that are more than 50% owned and controlled. Partially-owned investments represent 20-50% ownership interests in investments where the Company demonstrates significant influence, but does not have a controlling financial interest. Partially-owned investments are accounted for under the equity method. The Company does not have any investments that are accounted for under the cost method. All significant intercompany accounts and transactions have been eliminated in consolidation. | |||||
Use of Estimates | |||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates are based on several factors including the facts and circumstances available at the time the estimates are made, historical experience, risk of loss, general economic conditions and trends, and the assessment of the probable future outcome. Estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the statement of comprehensive income (loss) in the period that they are determined. | |||||
Foreign currency translation | |||||
All foreign currency denominated balance sheet accounts are translated at year end exchange rates and revenue and expense accounts are translated at weighted average rates of exchange prevailing during the year. Gains and losses resulting from the translation of foreign currency are recorded in the accumulated other comprehensive income (loss) component of stockholder’s equity. Transactional foreign currency gains and losses are included in other expense, net in the accompanying consolidated statements of comprehensive income (loss). | |||||
Cash and Cash Equivalents | |||||
The Company considers all deposits with an original maturity of three months or less and readily convertible cash to be cash equivalents in its consolidated financial statements. Outstanding checks are presented as a financing activity in the statement of cash flows because they are funded by drawing on the revolving credit facility as they are presented for payment. | |||||
Allowance for Doubtful Accounts | |||||
The allowance for doubtful accounts represents the best estimate of probable loss inherent within the Company’s accounts receivable balance. Estimates are based upon both the creditworthiness of specific customers and the overall probability of losses based upon an analysis of the overall aging of receivables as well as past collection trends and general economic conditions. | |||||
Inventories | |||||
Inventories are stated at the lower of cost, determined on the first-in, first-out (“FIFO”) method, or fair market value and consist primarily of automotive tires, custom wheels, and related tire supply and tool products. The Company performs periodic assessments to determine the existence of obsolete, slow-moving and non-saleable inventories and records necessary provisions to reduce such inventories to net realizable value. A majority of the Company’s tire vendors allow for the return of tire products, subject to certain limitations, specified in supply arrangements with the vendors. | |||||
Property and Equipment | |||||
Property and equipment are stated at cost, less accumulated depreciation. For financial reporting purposes, assets placed in service are recorded at cost and depreciated using the straight-line method at annual rates sufficient to amortize the cost of the assets less estimated salvage values over the assets’ estimated useful lives. Leasehold improvements are amortized over the shorter of their economic useful life or the related lease term. The range of useful lives used to depreciate property and equipment is as follows: | |||||
Buildings | 25 to 31 years | ||||
Leasehold improvements | 2 to 10 years | ||||
Machinery and equipment | 2 to 10 years | ||||
Furniture and fixtures | 3 to 8 years | ||||
Internal use software | 1 to 5 years | ||||
Vehicles and other | 3 to 6 years | ||||
Major expenditures for replacements and significant improvements that increase asset values and extend useful lives are capitalized. Repairs and maintenance expenditures that do not extend the useful life of the asset are charged to expense as incurred. The carrying amounts of assets that are sold or retired and the related accumulated depreciation are removed from the accounts in the year of disposal, and any resulting gain or loss is reflected in the statement of comprehensive income (loss). | |||||
The Company capitalizes costs, including interest, incurred to develop or acquire internal-use software. These costs are capitalized subsequent to the preliminary project stage once specific criteria are met. Costs incurred in the preliminary project planning stage are expensed. Other costs, such as maintenance and training, are also expensed as incurred. Capitalized costs are amortized over their estimated useful lives using the straight-line method. | |||||
The Company assesses the recoverability of the carrying value of its property and equipment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability is measured by a comparison of the carrying amount of an asset to the future net undiscounted cash flows expected to be generated by the asset. If the undiscounted cash flows are less than the carrying amount of the asset, an impairment loss is recognized for the amount by which the carrying value of the asset exceeds the fair value of the assets. | |||||
Goodwill and Intangible Assets | |||||
Goodwill and intangible assets with indefinite useful lives are tested and reviewed annually for impairment during the fourth quarter or whenever there is a significant change in events or circumstances that indicate that the fair value of the asset may be less than the carrying amount of the asset. | |||||
Recoverability of goodwill is measured at the reporting unit level and determined using a two step process. The first step compares the carrying amount of the reporting unit to its estimated fair value. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired and the second step of the impairment test is not necessary. To the extent that the carrying value of the reporting unit exceeds its estimated fair value, a second step is performed, wherein the reporting unit’s carrying value of goodwill is compared to the implied fair value of goodwill. To the extent that the carrying value exceeds the implied fair value, impairment exists and must be recognized. | |||||
Recoverability of other indefinite-lived intangible assets is measured by a comparison of the carrying amount of the intangible assets to the estimated fair value of the respective intangible assets. Any excess of the carrying value over the estimated fair value is recognized as an impairment loss equal to that excess. | |||||
Intangible assets such as customer-related intangible assets and noncompete agreements with finite useful lives are amortized on a straight-line or accelerated basis over their estimated economic lives. The weighted-average useful lives approximate the following: | |||||
Customer list | 16 to 19 years | ||||
Tradenames | 1 to 15 years | ||||
Noncompete agreements | 1 to 5 years | ||||
Favorable leases | 4 to 6 years | ||||
The Company assesses the recoverability of the carrying value of its intangible assets with finite useful lives whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability is measured by a comparison of the carrying amount of an asset to the future net undiscounted cash flows expected to be generated by the asset. If the undiscounted cash flows are less than the carrying amount of the asset, an impairment loss is recognized for the amount by which the carrying value of the asset exceeds the fair value of the assets. | |||||
Deferred Financing Costs | |||||
Deferred financing costs are expenditures associated with obtaining financings that are capitalized in the consolidated balance sheets and amortized over the term of the loans to which such costs relate. Amounts capitalized are recorded within other assets in the consolidated balance sheets and amortized to interest expense in the consolidated statements of comprehensive income (loss). At January 3, 2015, the unamortized balance of deferred financing costs was $22.4 million, which includes $14.0 million incurred in connection with the issuance of the senior secured term loan, $1.2 million incurred in connection with the issuance of the Additional Subordinated Notes, and $0.7 million incurred to increase the borrowing capacity of the Company’s FILO Facility during fiscal 2014 (See Note 9 for additional information). At December 28, 2013, the unamortized balance of deferred financing costs was $16.3 million. During fiscal 2014, the Company wrote-off $3.3 million of unamortized deferred financing costs related to the redemption of the Senior Secured Notes (See Note 9 for additional information). Amortization for fiscal 2014, fiscal 2013 and fiscal 2012 was $6.5 million, $4.5 million and $7.5 million, respectively. Amortization for fiscal 2012 included $2.8 million related to the write-off of deferred financing costs associated with a lender that is not participating in the new syndication group. | |||||
Derivative Instruments and Hedging Activities | |||||
For derivative instruments, the Company applies FASB authoritative guidance which establishes accounting and reporting standards requiring that every derivative instrument (including certain derivative instruments embedded in other contracts) be recorded in the balance sheet as either an asset or liability measured at its fair value. This statement requires that changes in the derivative’s fair value be recognized currently in earnings unless specific hedge accounting criteria are met and that a company must formally document, designate and assess the effectiveness of transactions that receive hedge accounting treatment. | |||||
Self Insurance | |||||
The Company is self-insured with respect to employee health liability claims and maintains a large deductible program on both workers’ compensation and auto insurance. The Company has stop-loss insurance coverage for individual claims in excess of $0.3 million for employee health insurance and deductibles of $0.3 million on the workers’ compensation and auto on a per claim basis. Aggregate stop-loss limits for workers’ compensation and auto are $11.2 million. There is no aggregate stop-loss limit on employee health insurance. A reserve for liabilities associated with losses is established for claims filed and claims incurred but not yet reported using actuarial methods followed in the insurance industry as well as the Company’s historical claims experience. | |||||
Revenue Recognition | |||||
Revenue is recognized and earned when all of the following criteria are satisfied: (a) persuasive evidence of a sales arrangement exists; (b) price is fixed or determinable; (c) collectability is reasonably assured; and (d) delivery has occurred or service has been rendered. The Company recognizes revenue when the title and the risks and rewards of ownership have substantially transferred to the customer, which is upon delivery under free on board (“FOB”) destination terms. The Company permits customers from time to time to return certain products, but there is no contractual right of return. The Company continuously monitors and tracks such returns and records an estimate of such future returns, which is based on historical experience and recent trends. During fiscal 2014, the Company revised the previous net presentation of its sales return reserve to correctly present it gross. These adjustments, which affected net sales, cost of goods sold, accounts receivable and inventories, were not material to the consolidated financial statements. | |||||
In the normal course of business, the Company extends credit, on open accounts, to its customers after performing a credit analysis based on a number of financial and other criteria. The Company performs ongoing credit evaluations of its customers’ financial condition and does not normally require collateral; however, letters of credit and other security are occasionally required for certain new and existing customers. | |||||
Customer Rebates | |||||
The Company offers rebates to its customers under a number of different programs. These rebates are recorded in accordance with the accounting standards for consideration given by a vendor to a customer. The majority of these programs provide for the customer to receive rebates, generally in the form of a reduction in the related accounts receivable balance, when certain measures are achieved, generally related to the volume of product purchased from the Company. These rebates are recorded as a reduction of the related price of the product, which reduces the amount of revenue recorded. Throughout the year, the amount of rebates is estimated based on the expected level of purchases to be made by customers that participate in the rebate programs. These estimates are periodically revised to reflect rebates earned by customers based on actual purchases made. | |||||
Manufacturer Rebates | |||||
The Company receives rebates from its vendors under a number of different programs. These rebates are recorded in accordance with the accounting standards for cash consideration received from a vendor. Many of the vendor programs provide for the Company to receive rebates when any of a number of measures are achieved, generally related to the volume of purchases. These rebates are accounted for as a reduction to the price of the product, which reduces the carrying value of our inventory, and our cost of goods sold when product is sold. Throughout the year, the amount recognized for annual rebates is based on purchases management considers probable for the full year. These estimates are continually revised to reflect rebates earned based on actual purchase levels. | |||||
Cooperative Advertising and Marketing Programs | |||||
The Company participates in cooperative advertising and marketing programs (“co-op”) with its vendors. Co-op funds are provided to the Company generally based on the volume of purchases made with vendors that offer such programs. A portion of the funds received must be used for specific advertising and marketing expenditures incurred by the Company or its customers. The co-op funds received by the Company from its vendors are accounted for in accordance with the accounting standards related to accounting for cash consideration received from a vendor, which requires that the Company record the funds received as a reduction of cost of sales or as an offset to specific costs incurred in selling the vendor’s products. The co-op funds that are provided to the Company’s customers are accounted for in accordance with authoritative guidance related to accounting for cash consideration given by a vendor to a customer, which requires that the Company record the funds paid as a reduction of revenue since no separate identifiable benefit is received by the Company. | |||||
Shipping and Handling Fees and Costs | |||||
In accordance with current accounting standards, the Company determined that shipping fees shall be reported on a gross basis. As a result, all amounts billed to a customer in a sale transaction related to shipping fees represent revenues earned for the goods provided and therefore recorded within net sales in the consolidated statement of comprehensive income (loss). Handling costs include expenses incurred to store, move, and prepare products for shipment. The Company classifies these costs as selling, general and administrative expenses within the consolidated statement of comprehensive income (loss), and includes a portion of internal costs such as salaries and overhead related to these activities. For fiscal 2014, 2013 and 2012, the Company incurred $275.0 million, $213.8 million and $171.1 million, respectively, related to these expenses. | |||||
Income Taxes | |||||
The Company records a tax provision for the anticipated tax consequences of the reported results of operations. The provision is computed using the asset and liability method of accounting, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. In addition, the Company recognizes future tax benefits, such as net operating losses and tax credits, to the extent that realizing these benefits is considered in its judgment to be more likely than not. Deferred tax assets and liabilities are measured using currently enacted tax rates that apply to taxable income in effect for the years in which those tax items are expected to be realized or settled. The Company regularly reviews the recoverability of its deferred tax assets considering historic profitability, projected future taxable income, and timing of the reversals of existing temporary differences as well as the feasibility of our tax planning strategies. Where appropriate, a valuation allowance is recorded if available evidence suggests that it is more likely than not that some portion or all of a deferred tax asset will not be realized. Changes to valuation allowances are recognized in earnings in the period such determination is made. | |||||
The Company accounts for uncertain tax positions by recognizing the financial statement effects of a tax position only when, based upon the technical merits, it is more-likely-than-not that the position will be sustained upon examination. The tax impacts recognized in the financial statements from such positions are then measured based on the largest impact that has a greater than 50% likelihood of being realized upon settlement. The Company recognizes potential accrued interest and penalties associated with unrecognized tax positions as a component of the provision for income taxes. | |||||
Recent Accounting Pronouncements | |||||
In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” ASU 2013-11 clarifies guidance and eliminates diversity in practice on the presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. This new guidance is effective for annual reporting periods beginning on or after December 15, 2013 and subsequent interim periods. The Company adopted this guidance on December 29, 2013 (the first day of its 2014 fiscal year) and its adoption did not have a material impact on the Company’s consolidated financial statements. | |||||
In April 2014, the FASB issued ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” (“ASU 2014-08”). Under ASU 2014-08, only disposals representing a strategic shift in operations that have a major effect on the company’s operations and financial results should be presented as discontinued operations. Additionally, ASU 2014-08 requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The amendments in ASU 2014-08 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. However, ASU 2014-08 should not be applied to a component that is classified as held for sale before the effective date even if the component is disposed of after the effective date. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued. The Company does not expect the adoption of ASU 2014-08 to have a significant impact on its consolidated financial statements. | |||||
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which provides guidance for revenue recognition. ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets and supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition,” and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, “Revenue Recognition-Construction-Type and Production-Type Contracts.” The standard’s core principle is that a company should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 is effective for the Company beginning in fiscal year 2017 and, at that time the Company may adopt the new standard under the full retrospective method or the modified retrospective method. Early adoption is not permitted. The Company is currently evaluating the method and impact the adoption of ASU 2014-09 will have on the Company’s consolidated financial statements and disclosures. | |||||
In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements – Going Concern – Disclosures of Uncertainties about an entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”). ASU 2014-15 provides new guidance related to management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards and to provide related footnote disclosures. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. The Company does not expect the adoption of ASU 2014-15 to have a significant impact on its consolidated financial statements. | |||||
In November 2014, the FASB issued ASU 2014-17, “Business Combinations: Pushdown Accounting” (“ASU 2014-17”). ASU 2014-17 provides an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. The acquired entity may elect the option to apply pushdown accounting in the reporting period in which the change-in-control event occurs. If pushdown accounting is not applied in the reporting period in which the change-in-control event occurs, an acquired entity will have the option to elect to apply pushdown accounting in a subsequent reporting period as a change in accounting principle in accordance with ASC Topic 250, “Accounting Changes and Error Corrections”. If pushdown accounting is applied to an individual change-in-control event, that election is irrevocable. ASU 2014-17 also requires an acquired entity that elects the option to apply pushdown accounting in its separate financial statements to disclose information in the current reporting period that enables users of financial statements to evaluate the effect of pushdown accounting. The Company has adopted the amendments in ASU 2014-17, effective November 18, 2014, as the amendments in the update are effective upon issuance. The adoption did not have an impact on the Company’s consolidated financial statements and disclosures. | |||||
In January 2015, the FASB issued ASU 2015-01, “Income Statement – Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items” (“ASU 2015-01”). ASU 2015-01 eliminates the concept of an extraordinary item from GAAP. As a result, an entity will no longer be required to segregate extraordinary items from the results of ordinary operations, to separately present an extraordinary item on its income statement, net of tax, after income from continuing operations or to disclose income taxes and earnings-per-share data applicable to an extraordinary item. However, ASU 2015-01 will retain the presentation and disclosure guidance for items that are unusual in nature and occur infrequently. ASU 2015-01 is effective for fiscal years beginning after December 15, 2015. The Company does not expect the adoption of ASU 2015-01 to have a significant impact on its consolidated financial statements. |
Acquisitions
Acquisitions | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||||||||||||||||||
Acquisitions | 3. Acquisitions: | ||||||||||||||||||||||||||||||||
2014 Acquisitions | |||||||||||||||||||||||||||||||||
On November 3, 2014, TriCan Tire Distributors Inc. (“TriCan”) completed the acquisitions of Regional Tire Distributor (Langley) Inc., Regional Tire Distributors (Vernon) Inc. and Regional Tire Distributors (Victoria) Inc. (collectively “RTD BC”) pursuant to three respective asset purchase agreements. RTD BC operated a tire wholesale business in the province of British Columbia in Canada. The acquisitions were funded through the Company’s existing ABL credit facility. The Company does not believe the acquisition of RTD BC is a material transaction, individually or when aggregated with the other non-material acquisitions discussed herein, subject to the disclosures and supplemental pro forma information required by ASC 805—Business Combinations. As a result, the information is not presented. | |||||||||||||||||||||||||||||||||
On June 27, 2014, TriCan, an indirect wholly-owned subsidiary of Holdings, entered into and closed an Asset Purchase Agreement (the “Trail Tire Purchase Agreement”) with Trail Tire Distributors Ltd., a corporation formed under the laws of the Province of Alberta (“Trail Tire”), and the shareholders and principals of Trail Tire, pursuant to which TriCan acquired the wholesale distribution business of Trail Tire. Trail Tire is a wholesale distributor of tires, tire parts, tire accessories and related equipment in Canada. The Company believes that the acquisition of Trail Tire will further strengthen TriCan’s presence in the Alberta Province of Canada and complements TriCan’s current operations in Canada. | |||||||||||||||||||||||||||||||||
The Trail Tire acquisition closed for aggregate cash consideration of approximately $20.8 million (the “Trail Tire Purchase Price”). The aggregate cash consideration was funded through borrowings under the Company’s existing ABL credit facility. The Trail Tire Purchase Price is subject to certain post-closing adjustments, including, but not limited to, working capital adjustments. During the quarter ended October 4, 2014, the Company finalized the post-closing working capital adjustments in accordance with the Trail Tire Purchase Agreement. This adjustment increased the Trail Tire Purchase Price by $1.5 million to $22.3 million with a corresponding increase to goodwill of $1.5 million. | |||||||||||||||||||||||||||||||||
On June 27, 2014, TriCan entered into and closed an Asset Purchase Agreement (the “Extreme Wheel Purchase Agreement”) with Extreme Wheel Distributors Ltd., a corporation formed under the laws of the Province of Alberta (“Extreme Wheel”), and the shareholder and principal of Extreme Wheel, pursuant to which TriCan agreed to acquire the wholesale distribution business of Extreme Wheel. Extreme Wheel is a wholesale distributor of wheels and related accessories in Canada. The Company believes that the acquisition of Extreme Wheel will further strengthen TriCan’s presence in the Alberta Province of Canada and complements TriCan’s current operations in Canada. | |||||||||||||||||||||||||||||||||
The Extreme Wheel acquisition closed for aggregate cash consideration of approximately $6.5 million (the “Extreme Wheel Purchase Price”). The aggregate cash consideration was funded through borrowings under the Company’s existing ABL credit facility. The Extreme Wheel Purchase Price is subject to certain post-closing adjustments, including, but not limited to, working capital adjustments. During the quarter ended October 4, 2014, the Company finalized the post-closing working capital adjustments in accordance with the Extreme Wheel Purchase Agreement. This adjustment increased the Extreme Wheel Purchase Price by $0.7 million to $7.2 million with a corresponding increase to goodwill of $0.7 million. | |||||||||||||||||||||||||||||||||
On June 27, 2014, TriCan entered into and closed an Asset Purchase Agreement (the “Kirks Tire Purchase Agreement”) with Kirks Tire Ltd., a corporation formed under the laws of the Province of Alberta (“Kirks Tire”), and the shareholders and principals of Kirks Tire, pursuant to which TriCan agreed to acquire the wholesale distribution business of Kirks Tire. Kirks Tire is engaged in (i) the wholesale distribution of tires, tire parts, tire accessories and related equipment and (ii) the retail sale and installation of tires, tire parts, and tire accessories and the manufacturing and sale of retread tires. Kirks Tire’s retail operations were not acquired by TriCan and will continue to operate under its current ownership. The Company believes that the acquisition of the wholesale distribution business of Kirks Tire will further strengthen TriCan’s presence in the Alberta Province of Canada and complements TriCan’s current operations in Canada. | |||||||||||||||||||||||||||||||||
The Kirks Tire acquisition closed for aggregate cash consideration of approximately $73.0 million (the “Kirks Tire Purchase Price”). The Kirks Tire Purchase Price was funded through borrowings under the Company’s existing ABL credit facility. The Kirks Tire Purchase Price is subject to certain post-closing adjustments, including, but not limited to, working capital adjustments. During the quarter ended October 4, 2014, the Company finalized the post-closing working capital adjustments in accordance with the Kirks Tire Purchase Agreement. This adjustment increased the Kirks Tire Purchase Price by $4.7 million to $77.7 million with a corresponding increase to goodwill of $4.7 million. | |||||||||||||||||||||||||||||||||
On June 27, 2014, TriCan entered into and closed an Asset Purchase Agreement (the “RTD Edmonton Purchase Agreement”) with Regional Tire Distributors (Edmonton) Inc. (“RTD Edmonton”), a corporation formed under the laws of the Province of Alberta, and the shareholders and principals of RTD Edmonton, pursuant to which TriCan agreed to acquire the wholesale distribution business of RTD Edmonton. RTD Edmonton is a wholesale distributor of tires, tire parts, tire accessories and related equipment. The Company believes that the acquisition of RTD Edmonton will further strengthen TriCan’s presence in the Alberta Province of Canada and complements TriCan’s current operations in Canada. | |||||||||||||||||||||||||||||||||
The RTD Edmonton acquisition closed for aggregate cash consideration of approximately $31.9 million (the “RTD Edmonton Purchase Price”). The RTD Edmonton Purchase Price was funded through borrowings under the Company’s existing ABL credit facility. The RTD Edmonton Purchase Price is subject to certain post-closing adjustments, including, but not limited to, working capital adjustments. During the quarter ended October 4, 2014, the Company finalized the post-closing working capital adjustments in accordance with the RTD Edmonton Purchase Agreement. This adjustment increased the RTD Edmonton Purchase Price by $0.5 million to $32.4 million with a corresponding increase to goodwill of $0.5 million. | |||||||||||||||||||||||||||||||||
On June 27, 2014, TriCan entered into and closed an Asset Purchase Agreement (the “RTD Calgary Purchase Agreement”) with Regional Tire Distributors (Calgary) Inc. (“RTD Calgary”), a corporation formed under the laws of the Province of Alberta, and the shareholders and principals of RTD Calgary, pursuant to which TriCan agreed to acquire the wholesale distribution business of RTD Calgary. RTD Calgary is a wholesale distributor of tires, tire parts, tire accessories and related equipment. The Company believes that the acquisition of RTD Calgary will further strengthen TriCan’s presence in the Alberta Province of Canada and complements TriCan’s current operations in Canada. | |||||||||||||||||||||||||||||||||
The RTD Calgary acquisition closed for aggregate cash consideration of approximately $20.7 million (the “RTD Calgary Purchase Price”). The RTD Calgary Purchase Price was funded by borrowings under the Company’s existing ABL credit facility. The RTD Calgary Purchase Price is subject to certain post-closing adjustments, including, but not limited to, working capital adjustments. During the quarter ended October 4, 2014, the Company finalized the post-closing working capital adjustments in accordance with the RTD Calgary Purchase Agreement. This adjustment increased the RTD Calgary Purchase Price by $3.6 million to $24.3 million with a corresponding increase to goodwill of $3.6 million. | |||||||||||||||||||||||||||||||||
On March 28, 2014, ATDI completed its acquisition of Terry’s Tire Town Holdings, Inc., an Ohio corporation (“Terry’s Tire” and such acquisition, the “Terry’s Tire Acquisition”). The Terry’s Tire Acquisition was completed pursuant to a Stock Purchase Agreement (the “Stock Purchase Agreement”) entered into on February 17, 2014 between ATDI and TTT Holdings, Inc., a Delaware corporation. Terry’s Tire and its subsidiaries are engaged in the business of purchasing, marketing, distributing and selling tires, wheels and related tire and wheel accessories on a wholesale basis to tire dealers, wholesale distributors, retail chains, automotive dealers and others, retreading tires and selling retread and other commercial tires through commercial outlets to end users and selling tires directly to consumers via the internet. Terry’s Tire operated 10 distribution centers spanning from Virginia to Maine and in Ohio. The Company believes that the acquisition of Terry’s Tire will enhance its market position in these areas and aligns with their distribution centers, especially the new distribution centers opened by the Company over the past two years in the Northeast and Ohio. | |||||||||||||||||||||||||||||||||
The Terry’s Tire acquisition closed for an aggregate purchase price of approximately $370.5 million (the “Terry’s Tire Purchase Price”), consisting of cash consideration of approximately $358.0 million and contingent consideration of $12.5 million. The cash consideration paid for the Terry’s Tire Acquisition included estimated working capital adjustments and a portion of consideration contingent on certain events achieved prior to closing. During second quarter 2014, the Company finalized the post-closing working capital adjustments in accordance with the purchase agreement. This adjustment decreased the Terry’s Tire Purchase Price by $5.4 million to $370.5 million with a corresponding decrease to goodwill of $5.4 million. The Terry’s Tire Purchase Price was funded by a combination of borrowings under a new senior secured term loan facility, as more fully described in Note 9, and borrowings of approximately $72.5 million under Holdings’ existing U.S. ABL Facility. | |||||||||||||||||||||||||||||||||
On January 31, 2014, pursuant to an Agreement and Plan of Merger, dated January 24, 2014 (the “Merger Agreement”), among ATD Merger Sub II LLC (“Merger Sub”), an indirect wholly-owned subsidiary of Holdings, ATDI, Hercules Tire Holdings LLC, a Delaware limited liability company (“Hercules Holdings”), the equityholders of Hercules Holdings (each a “Seller” and, collectively the “Sellers”) and the Sellers’ Representative, Merger Sub merged with and into Hercules Holdings, with Hercules Holdings being the surviving entity (the “Merger”). As a result of the Merger, Hercules Holdings became an indirect 100% owned subsidiary of Holdings. Hercules Holdings owns all of the capital stock of The Hercules Tire & Rubber Company, a Connecticut corporation (“Hercules”). Hercules Holdings has no material assets or operations other than its ownership of Hercules. Hercules is engaged in the business of purchasing, marketing, distributing and selling after-market replacement tires for passenger cars, trucks, and certain off road vehicles to tire dealers, wholesale distributors, retail distributors and others in the United States, Canada and internationally. Hercules operated 15 distribution centers in the United States, 6 distribution centers in Canada and one warehouse in northern China. Hercules also markets the Hercules® brand, which is one of the most sought-after proprietary tire brands in the industry. The acquisition of Hercules is expected to strengthen the Company’s presence in major markets such as California, Texas and Florida in addition to increasing its presence in Canada. Additionally, the Company believes that Hercules’ strong logistics and sourcing capabilities, including a long-standing presence in China, will also allow the Company to capitalize on the growing import market, as well as, providing the ability to expand the international sales of the Hercules® brand. Finally, this acquisition will allow the Company to be a brand marketer of the Hercules® brand which in 2014 had a 2% market share of the passenger and light truck market in North America and a 3% share of highway truck tires in North America. | |||||||||||||||||||||||||||||||||
The Merger closed for an aggregate purchase price of approximately $313.4 million (the “Hercules Closing Purchase Price”), consisting of net cash consideration of $309.9 million and contingent consideration of $3.5 million. The Hercules Closing Purchase Price includes an estimate for initial working capital adjustments. During second quarter 2014, the Company finalized the post-closing working capital adjustments in accordance with the Merger Agreement. This adjustment decreased the Hercules Closing Purchase Price by $0.4 million from $313.8 million to $313.4 million with a corresponding decrease to goodwill of $0.4 million. The Merger Agreement provides for the payment of up to $6.5 million in additional consideration contingent upon the occurrence of certain post-closing events (to the extent payable, the “Hercules Additional Purchase Price” and, collectively with the Hercules Closing Purchase Price, the “Hercules Purchase Price”). The cash consideration paid for the Merger was funded by a combination of the issuance of additional Senior Subordinated Notes, as more fully described in Note 9, an equity contribution of $50.0 million from Holdings’ indirect parent, as more fully described in Note 16 and borrowings under Holdings’ credit agreement, as more fully described in Note 9. | |||||||||||||||||||||||||||||||||
On January 17, 2014, TriCan entered into an Asset Purchase Agreement with Kipling Tire Co. LTD., a corporation governed by the laws of the Province of Ontario (“Kipling”), pursuant to which TriCan agreed to acquire the wholesale distribution business of Kipling. Kipling has operated as a retail-wholesale business since 1982. Kipling’s wholesale business distributes tires from its Etobicoke facilities to approximately 400 retail customers in Southern Ontario. Kipling’s retail operations were not acquired by TriCan and will continue to operate under its current ownership. This acquisition will further strengthen TriCan’s presence in the Southern Ontario region of Canada. The acquisition was completed on January 17, 2014 and was funded through the Company’s Canadian ABL Facility. The Company does not believe the acquisition of Kipling is a material transaction subject to the disclosures and supplemental pro forma information required by ASC 805 – Business Combinations. As a result, the information is not presented. | |||||||||||||||||||||||||||||||||
The acquisitions of Trail Tire, Extreme Wheel, Kirks Tire, RTD Edmonton, RTD Calgary, Terry’s Tire and Hercules (collectively the “2014 Acquisitions”) were recorded using the acquisition method of accounting in accordance with current accounting guidance for business combinations and non-controlling interest. As of the date of these financial statements, the Company is continuing to evaluate the initial purchase price allocation for the Trail Tire, Extreme Wheel, Kirks Tire, RTD Edmonton, RTD Calgary and RTD BC acquisitions. Accordingly, management has used its best estimates in the allocation of the purchase price to assets acquired and liabilities assumed based on the estimated preliminary fair market value of such assets and liabilities at the date of each acquisition. As additional information is obtained about these assets and liabilities within the measurement period, the Company expects to refine its estimates of fair value to allocate the purchase price for the Trail Tire, Extreme Wheel, Kirks Tire, RTD Edmonton, RTD Calgary and RTD BC acquisitions more accurately. As of the date of these financial statements, the purchase price allocations for Hercules and Terry’s Tire are final. The allocation of the purchase price for each of the 2014 Acquisitions is as follows: | |||||||||||||||||||||||||||||||||
Terry’s | Trail | Kirks | RTD | RTD | |||||||||||||||||||||||||||||
In thousands | Tire | Hercules | Tire | Extreme | Tire | Edmonton | Calgary | Total | |||||||||||||||||||||||||
Cash | $ | 7,431 | $ | 12,187 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 19,618 | |||||||||||||||||
Accounts receivable | 39,772 | 61,193 | 4,899 | 884 | 5,175 | 1,056 | 2,618 | 115,597 | |||||||||||||||||||||||||
Inventory | 91,895 | 153,644 | 6,308 | 1,380 | 5,927 | 2,412 | 6,047 | 267,613 | |||||||||||||||||||||||||
Assets held for sale | 5,819 | — | — | — | — | — | — | 5,819 | |||||||||||||||||||||||||
Other current assets | 2,222 | 5,064 | — | — | — | — | — | 7,286 | |||||||||||||||||||||||||
Deferred income taxes | 4,947 | — | 124 | — | — | — | — | 5,071 | |||||||||||||||||||||||||
Property and equipment | 7,072 | 29,970 | 298 | 29 | — | 6 | 508 | 37,883 | |||||||||||||||||||||||||
Intangible assets | 186,161 | 155,704 | 10,922 | 3,985 | 43,971 | 21,549 | 9,707 | 431,999 | |||||||||||||||||||||||||
Other assets | 289 | — | — | — | — | — | — | 289 | |||||||||||||||||||||||||
Total assets acquired | 345,608 | 417,762 | 22,551 | 6,278 | 55,073 | 25,023 | 18,880 | 891,175 | |||||||||||||||||||||||||
Debt | 2,131 | 5,446 | — | — | — | — | — | 7,577 | |||||||||||||||||||||||||
Accounts payable | 80,771 | 95,616 | 6,017 | 449 | — | 1,432 | 1,907 | 186,192 | |||||||||||||||||||||||||
Accrued and other liabilities | 3,904 | 6,154 | 368 | 131 | 2,997 | 183 | 1,464 | 15,201 | |||||||||||||||||||||||||
Liabilities held for sale | 319 | — | — | — | — | — | — | 319 | |||||||||||||||||||||||||
Deferred income taxes | — | 68,516 | — | — | — | — | — | 68,516 | |||||||||||||||||||||||||
Other liabilities | — | 2,325 | 468 | — | 47 | — | — | 2,840 | |||||||||||||||||||||||||
Total liabilities assumed | 87,125 | 178,057 | 6,853 | 580 | 3,044 | 1,615 | 3,371 | 280,645 | |||||||||||||||||||||||||
Net assets acquired | 258,483 | 239,705 | 15,698 | 5,698 | 52,029 | 23,408 | 15,509 | 610,530 | |||||||||||||||||||||||||
Goodwill | 112,042 | 73,708 | 6,624 | 1,469 | 25,627 | 8,945 | 8,769 | 237,184 | |||||||||||||||||||||||||
Purchase price | $ | 370,525 | $ | 313,413 | $ | 22,322 | $ | 7,167 | $ | 77,656 | $ | 32,353 | $ | 24,278 | $ | 847,714 | |||||||||||||||||
The excess of the purchase price over the amounts allocated to identifiable assets and liabilities is included in goodwill. The premium in the purchase price paid for the 2014 Acquisitions primarily reflects growth opportunities from expanding the Company’s distribution footprint into Western Canada and through the anticipated realization of operational and cost synergies. In addition, growth opportunities associated with the Hercules® brand also contributed to the premium in the purchase price paid for the Hercules acquisition. | |||||||||||||||||||||||||||||||||
Cash and cash equivalents, accounts receivable and accounts payable were stated at their historical carrying values, which approximate their fair value, given the short-term nature of these assets and liabilities. Inventory was recorded at fair value, based on computations which considered many factors including the estimated selling price of the inventory, the cost to dispose the inventory as well as the replacement cost of the inventory, where applicable. | |||||||||||||||||||||||||||||||||
The Company recorded intangible assets based on their estimated fair value which consisted of the following: | |||||||||||||||||||||||||||||||||
Terry’s | Trail | Kirks | RTD | RTD | |||||||||||||||||||||||||||||
In thousands | Tire | Hercules | Tire | Extreme | Tire | Edmonton | Calgary | Total | |||||||||||||||||||||||||
Customer list (1) | $ | 185,776 | $ | 147,216 | $ | 10,922 | $ | 3,985 | $ | 43,971 | $ | 21,549 | $ | 9,707 | $ | 423,126 | |||||||||||||||||
Tradenames (2) | — | 8,488 | — | — | — | — | — | 8,488 | |||||||||||||||||||||||||
Favorable leases (3) | 385 | — | — | — | — | — | — | 385 | |||||||||||||||||||||||||
Total | $ | 186,161 | $ | 155,704 | $ | 10,922 | $ | 3,985 | $ | 43,971 | $ | 21,549 | $ | 9,707 | $ | 431,999 | |||||||||||||||||
-1 | Estimated useful life is eighteen years. | ||||||||||||||||||||||||||||||||
-2 | Esimated useful life is fifteen years | ||||||||||||||||||||||||||||||||
-3 | Esimated useful life is five years. | ||||||||||||||||||||||||||||||||
The Company utilized the excess earnings method, a derivation of the income approach, as well as the assistance of a third-party valuation report, to determine the fair value of the customer list intangible assets. The excess earnings method estimates the discounted net earnings attributable to the customer relationships that were acquired after considering items such as possible customer attrition. Based on the length and trend of projected cash flows, an estimated useful life of eighteen years was determined. The length of the projected cash flow period was determined by how quickly the customer relationships attrit based on the Company’s historical experience in renewing and extending similar customer relationships and future expectations for renewing and extending similar existing customer relationships, and represents the number of years over which the Company expects the customer relationships to economically contribute to the business. This estimate is based on the year in which 95.0% of the annual discounted cash flows were captured in the value of the customer list intangible asset. | |||||||||||||||||||||||||||||||||
As part of the acquisition of Terry’s Tire, the Company acquired Terry’s Tire’s commercial and retread businesses. As the Company’s core business does not include commercial and retread operations, the Company decided that it would divest of these businesses. As it was management’s intention to divest the commercial and retread businesses during fiscal 2014 and as all held for sale criteria had been met, the related assets, including the allocation of purchase price, and the related liabilities of the commercial and retread businesses were classified as held for sale at the acquisition date. As part of the purchase price allocation, the estimated fair value of the assets held for sale was $5.8 million, including $4.5 million in current assets, net property and equipment of $0.8 million and goodwill of $0.5 million. The estimated fair value of the liabilities held for sale was $0.3 million of which the entire amount related to current liabilities. On July 31, 2014, the Company completed a transaction to sell the commercial and retread businesses acquired as part of the Terry’s Tire acquisition. See Note 19 for additional information. | |||||||||||||||||||||||||||||||||
The 2014 Acquisitions contributed net sales of approximately $805.8 million to the Company for the twelve months ended January 3, 2015. Net loss contributed by the 2014 Acquisitions during the twelve months ended January 3, 2015 was approximately $25.9 million which included non-cash amortization of the inventory step-up of $34.3 million and non-cash amortization expense on acquired intangible assets of $33.4 million. | |||||||||||||||||||||||||||||||||
2013 Acquisitions | |||||||||||||||||||||||||||||||||
On December 13, 2013, TriCan entered into a Share Purchase Agreement with Wholesale Tire Distributors Inc., a corporation formed under the laws of the Province of Ontario (“WTD”), Allan Bishop, an individual resident in the Province of Ontario (“Allan”) and The Bishop Company Inc., a corporation formed under the laws of the Province of Ontario (“BishopCo”) (Allan and BishopCo each, a “Seller” and collectively, the “Sellers”), pursuant to which TriCan agreed to acquire from the Sellers all of the issued and outstanding shares of WTD. WTD owned and operated two distribution centers serving over 2,300 customers. The Company believes the acquisition of WTD strengthened the Company’s market presence in the Southern Ontario region of Canada. The acquisition was completed on December 13, 2013 and was funded through cash on hand. The Company does not believe the acquisition of WTD is a material transaction, individually or when aggregated with the other non-material acquisition discussed herein, subject to the disclosures and supplemental pro forma information required by ASC 805 – Business Combinations. As a result, the information is not presented. | |||||||||||||||||||||||||||||||||
The acquisition of WTD was recorded using the acquisition method of accounting in accordance with the accounting guidance for business combinations and non-controlling interest. The purchase price has been allocated to assets acquired and liabilities assumed based on the estimated fair market value of such assets and liabilities at the date of acquisition. A majority of the net assets acquired relate to a customer list intangible asset, which had an acquisition date fair value of $4.4 million. The excess of the purchase price over the amounts allocated to identifiable assets and liabilities is included in goodwill, and amounted to $1.2 million. The premium in the purchase price paid for the acquisition of WTD reflects the anticipated realization of operational and cost synergies. | |||||||||||||||||||||||||||||||||
On August 30, 2013, the Company entered into a Stock Purchase Agreement with Tire Distributors, Inc. (“TDI”) to acquire 100% of the outstanding capital stock of TDI. TDI owned and operated one distribution center serving over 1,700 customers across Maryland and northeastern Virginia. The acquisition was completed on August 30, 2013 and was funded through the Company’s ABL Facility. The Company does not believe the acquisition of TDI is a material transaction, individually or when aggregated with the other non-material acquisition discussed herein, subject to the disclosures and supplemental pro forma information required by ASC 805 – Business Combinations. As a result, the information is not presented. | |||||||||||||||||||||||||||||||||
The acquisition of TDI was recorded using the acquisition method of accounting in accordance with the accounting guidance for business combinations and non-controlling interest. The purchase price has been allocated to assets acquired and liabilities assumed based on the estimated fair market value of such assets and liabilities at the date of acquisition. A majority of the net assets acquired relate to a customer list intangible asset, which had an acquisition date fair value of $3.4 million. The excess of the purchase price over the amounts allocated to identifiable assets and liabilities is included in goodwill, and amounted to $2.4 million. The premium in the purchase price paid for the acquisition of TDI reflects the anticipated realization of operational and cost synergies. | |||||||||||||||||||||||||||||||||
On March 22, 2013, TriCan and ATDI entered into a Share Purchase Agreement with Regional Tire Holdings Inc., a corporation formed under the laws of the Province of Ontario (“Holdco”), Regional Tire Distributors Inc. (“RTD”), a corporation formed under the laws of the Province of Ontario and a 100% owned subsidiary of Holdco, and the shareholders of Holdco, pursuant to which TriCan agreed to acquire from the shareholders of Holdco all of the issued and outstanding shares of Holdco for a purchase price of $62.5 million. Holdco has no significant assets or operations, other than its ownership of RTD. The operations of RTD constitute the operations of Holdco. RTD is a wholesale distributor of tires, tire parts, tire accessories and related equipment in the Ontario and Atlantic provinces of Canada. The Company believes that the acquisition of RTD significantly expanded the Company’s presence in the Ontario and Atlantic Provinces of Canada and complemented the Company’s current operations in Canada. | |||||||||||||||||||||||||||||||||
The acquisition of RTD was completed on April 30, 2013 for aggregate cash consideration of approximately $64.9 million (the “Adjusted Purchase Price”) which includes initial working capital adjustments. The acquisition of RTD was funded by borrowings under the Company’s ABL Facility and FILO Facility, as more fully described in Note 9. The Adjusted Purchase Price was subject to certain post-closing adjustments, including, but not limited to, the finalization of working capital adjustments. Of the $64.9 million Adjusted Purchase Price, $6.3 million is held in escrow pending the resolution of the post-closing adjustments and other escrow release conditions in accordance with the terms of the purchase agreement and escrow agreement. During third quarter 2013, the Company and the shareholders of Holdco agreed on the post-closing working capital adjustments in accordance with the purchase agreement. This adjustment increased the Adjusted Purchase Price by $1.0 million to $65.9 million with a corresponding increase to goodwill of $1.0 million. | |||||||||||||||||||||||||||||||||
The acquisition of RTD was recorded using the acquisition method of accounting in accordance with current accounting guidance for business combinations and non-controlling interest. As a result, the Adjusted Purchase Price has been allocated to assets acquired and liabilities assumed based on the estimated fair market value of such assets and liabilities at the date of acquisition. The allocation of the Adjusted Purchase Price is a follows: | |||||||||||||||||||||||||||||||||
In thousands | |||||||||||||||||||||||||||||||||
Cash | $ | 904 | |||||||||||||||||||||||||||||||
Accounts receivable | 10,093 | ||||||||||||||||||||||||||||||||
Inventory | 21,685 | ||||||||||||||||||||||||||||||||
Other current assets | 998 | ||||||||||||||||||||||||||||||||
Property and equipment | 1,050 | ||||||||||||||||||||||||||||||||
Intangible assets | 42,990 | ||||||||||||||||||||||||||||||||
Other assets | 52 | ||||||||||||||||||||||||||||||||
Total assets acquired | 77,772 | ||||||||||||||||||||||||||||||||
Debt | — | ||||||||||||||||||||||||||||||||
Accounts payable | 7,817 | ||||||||||||||||||||||||||||||||
Accrued and other liabilities | 12,740 | ||||||||||||||||||||||||||||||||
Deferred income taxes | 11,692 | ||||||||||||||||||||||||||||||||
Total liabilities assumed | 32,249 | ||||||||||||||||||||||||||||||||
Net assets acquired | 45,523 | ||||||||||||||||||||||||||||||||
Goodwill | 20,375 | ||||||||||||||||||||||||||||||||
Purchase price | $ | 65,898 | |||||||||||||||||||||||||||||||
The excess of the purchase price over the amounts allocated to identifiable assets and liabilities is included in goodwill, and amounted to $20.4 million. The premium in the purchase price paid for the acquisition of RTD primarily relates to growth opportunities from expanding the Company’s distribution footprint into Eastern Canada and through operating synergies available via the consolidation of certain distribution centers in Eastern Canada. | |||||||||||||||||||||||||||||||||
Cash and cash equivalents, accounts receivable and accounts payable were stated at their historical carrying values, which approximate their fair value, given the short-term nature of these assets and liabilities. Inventory was recorded at fair value, based on computations which considered many factors including the estimated selling price of the inventory, the cost to dispose the inventory as well as the replacement cost of the inventory, where applicable. | |||||||||||||||||||||||||||||||||
The Company recorded intangible assets based on their estimated fair value which consisted of the following: | |||||||||||||||||||||||||||||||||
Estimated | Estimated | ||||||||||||||||||||||||||||||||
Useful | Fair | ||||||||||||||||||||||||||||||||
In thousands | Life | Value | |||||||||||||||||||||||||||||||
Customer list | 16 years | $ | 40,720 | ||||||||||||||||||||||||||||||
Tradenames | 5 years | 1,900 | |||||||||||||||||||||||||||||||
Favorable leases | 4 years | 370 | |||||||||||||||||||||||||||||||
Total | $ | 42,990 | |||||||||||||||||||||||||||||||
2012 Acquisitions | |||||||||||||||||||||||||||||||||
On November 30, 2012, ATDI and ATD Acquisition Co. V Inc. (“Canada Acquisition”), a newly-formed direct 100% owned Canadian subsidiary of ATDI, entered into a Share Purchase Agreement with 1278104 Alberta Inc. (“Seller”), Triwest Trading (Canada) Ltd., a 100% owned subsidiary of Seller (“Triwest”) and certain shareholders of Seller pursuant to which Canada Acquisition agreed to acquire from Seller all of the issued and outstanding common shares of Triwest along with an outstanding loan owed to Seller by Triwest for approximately $97.5 million, subject to certain post-closing adjustments, including, but not limited to, working capital adjustments. Of the $97.5 million purchase price, $15.0 million is held in escrow pending the resolution of the post-closing adjustments and other escrow release conditions in accordance with the terms of the purchase agreement and escrow agreement. As a result of the acquisition, Triwest became a direct 100% owned subsidiary of Canada Acquisition. Triwest (dba: TriCan Tire Distributors, or “TriCan”) is a wholesale distributor of tires, tire parts, tire accessories and related equipment in Canada with distribution centers stretching across the country. The acquisition of TriCan expanded the Company’s footprint and distribution services into Canada for the first time. During second quarter 2013, the Company and the Seller agreed on the post-closing working capital adjustment in accordance with the purchase agreement. This adjustment reduced the purchase price by $3.4 million to $94.1 million with a corresponding decrease to goodwill of $3.4 million. | |||||||||||||||||||||||||||||||||
The acquisition of TriCan was completed on November 30, 2012 and funded through the Company’s ABL Facility. The acquisition of TriCan was recorded using the acquisition method of accounting in accordance with current accounting guidance for business combinations and non-controlling interest. As a result, the total purchase price has been allocated to assets acquired and liabilities assumed based on the estimated fair market value of such assets and liabilities at the date of acquisition. The allocation of the purchase price is as follows: | |||||||||||||||||||||||||||||||||
In thousands | |||||||||||||||||||||||||||||||||
Cash | $ | 1,344 | |||||||||||||||||||||||||||||||
Accounts receivable | 35,518 | ||||||||||||||||||||||||||||||||
Inventory | 45,445 | ||||||||||||||||||||||||||||||||
Other current assets | 495 | ||||||||||||||||||||||||||||||||
Property and equipment | 1,191 | ||||||||||||||||||||||||||||||||
Intangible assets | 49,940 | ||||||||||||||||||||||||||||||||
Other assets | 755 | ||||||||||||||||||||||||||||||||
Total assets acquired | 134,688 | ||||||||||||||||||||||||||||||||
Debt | — | ||||||||||||||||||||||||||||||||
Accounts payable | 37,576 | ||||||||||||||||||||||||||||||||
Accrued and other liabilities | 14,609 | ||||||||||||||||||||||||||||||||
Deferred income taxes | 13,003 | ||||||||||||||||||||||||||||||||
Other liabilities | 475 | ||||||||||||||||||||||||||||||||
Total liabilities assumed | 65,663 | ||||||||||||||||||||||||||||||||
Net assets acquired | 69,025 | ||||||||||||||||||||||||||||||||
Goodwill | 25,044 | ||||||||||||||||||||||||||||||||
Purchase price | $ | 94,069 | |||||||||||||||||||||||||||||||
The excess of the purchase price over the amounts allocated to identifiable assets and liabilities is included in goodwill, and amounted to $25.0 million. The premium in the purchase price paid for the acquisition of TriCan primarily relates to growth opportunities from expanding the Company’s distribution footprint into Canada. | |||||||||||||||||||||||||||||||||
Cash, and cash equivalents, accounts receivable and accounts payable were stated at their historical carrying values, which approximate their fair value, given the short-term nature of these assets and liabilities. Inventory was recorded at fair value, based on computations which considered many factors including the estimated selling price of the inventory, the cost to dispose the inventory as well as the replacement cost of the inventory, where applicable. | |||||||||||||||||||||||||||||||||
The Company recorded intangible assets based on their estimated fair value and consisted of the followings: | |||||||||||||||||||||||||||||||||
Estimated | Estimated | ||||||||||||||||||||||||||||||||
Useful | Fair | ||||||||||||||||||||||||||||||||
In thousands | Life | Value | |||||||||||||||||||||||||||||||
Customer list | 16 years | $ | 44,621 | ||||||||||||||||||||||||||||||
Tradenames | 7 years | 4,958 | |||||||||||||||||||||||||||||||
Favorable leases | 6 years | 361 | |||||||||||||||||||||||||||||||
Total | $ | 49,940 | |||||||||||||||||||||||||||||||
On May 24, 2012, the Company entered into a Stock Purchase Agreement with Firestone of Denham Springs, Inc. d/b/a Consolidated Tire & Oil (“CTO”) to acquire 100% of the outstanding capital stock of CTO. CTO operated three distribution centers in Baton Rouge, Slidell and Lafayette, Louisiana serving over 500 customers. The acquisition was completed on May 24, 2012 and was funded through the Company’s ABL Facility. The Company does not believe the acquisition of CTO is a material transaction subject to the disclosures and supplemental pro forma information required by ASC 805 – Business Combinations. As a result, the information is not presented. | |||||||||||||||||||||||||||||||||
The acquisition of CTO was recorded using the acquisition method of accounting in accordance with the accounting guidance for business combinations and non-controlling interest. The purchase price has been allocated to assets acquired and liabilities assumed based on the estimated fair market value of such assets and liabilities at the date of acquisition. A majority of the net assets acquired relate to a customer list intangible asset, which had an acquisition date fair value of $15.9 million. The excess of the purchase price over the amounts allocated to identifiable assets and liabilities is included in goodwill, and amounted to $10.1 million. The premium in the purchase price paid for the acquisition of CTO reflects the anticipated realization of operational and cost synergies. | |||||||||||||||||||||||||||||||||
The following unaudited pro forma supplementary data gives effect to the 2014 Acquisitions as if these transactions had occurred on December 30, 2012 (the first day of the Company’s 2013 fiscal year), gives effect to the acquisition of RTD as if it had occurred on January 1, 2012 (the first day of the Company’s 2012 fiscal year) and gives effect to the acquisition of TriCan as if it had occurred on January 2, 2011 (the first day of the Company’s 2011 fiscal year). The pro forma supplementary data is provided for informational purposes only and should not be construed to be indicative of the Company’s results of operations had the 2014 Acquisitions, the RTD acquisition and the TriCan acquisition been consummated on the date assumed and does not project the Company’s results of operations for any future date. | |||||||||||||||||||||||||||||||||
Pro Forma | |||||||||||||||||||||||||||||||||
Fiscal Year | Fiscal Year | Fiscal Year | |||||||||||||||||||||||||||||||
Ended | Ended | Ended | |||||||||||||||||||||||||||||||
January 3, | December 28, | December 29, | |||||||||||||||||||||||||||||||
In thousands | 2015 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Net sales | $ | 5,240,010 | $ | 5,106,493 | $ | 3,765,737 | |||||||||||||||||||||||||||
Income (loss) from continuing operations | (67,628 | ) | (91,868 | ) | (12,170 | ) | |||||||||||||||||||||||||||
The pro forma supplementary data for the fiscal years ended January 3, 2015, December 28, 2013 and December 29, 2012, includes $12.0 million, $42.1 million and $12.6 million, respectively, as an increase to historical amortization expense as a result of acquired intangible assets. In addition, the pro forma supplementary data for the fiscal years ended January 3, 2015 and December 28, 2013 includes $5.6 million and $42.8 million, respectively, as an increase to historical interest expense as a result of the issuance of the additional Senior Subordinated Notes and the new senior secured term loan facility, as more fully described in Note 9. For the fiscal years ended December 28, 2013 and December 29, 2012, the Company has included non-recurring historical transaction expenses of $67.1 million and $2.5 million, respectively. These transaction expenses were incurred prior to the acquisition of Hercules, Terry’s Tire and RTD and they are directly related to the acquisitions and are non-recurring. Additionally, for the fiscal years ended January 3, 2015 and December 28, 2013, the Company has included a reduction in historical cost of goods sold of $34.3 million and $2.7 million, respectively. The reduction in cost of goods sold relates to the elimination of the non-cash amortization of the inventory step-up recorded in connection with the 2014 Acquisitions and the RTD acquisition as the amortization is directly related to these acquisitions and is non-recurring. |
Inventories
Inventories | 12 Months Ended |
Jan. 03, 2015 | |
Inventories | 4. Inventories: |
Inventories consist primarily of automotive tires, custom wheels, tire supplies and tools and are valued at the lower of cost, determined on the first-in, first-out (“FIFO”) method, or fair market value. The Company performs periodic assessments to determine the existence of obsolete, slow-moving and non-saleable inventories and records necessary provisions to reduce such inventories to net realizable value. A majority of the Company’s tire vendors allow for the return of tire products, subject to certain limitations, specified in supply arrangements with the vendors. In addition, the Company’s inventory is collateral under the ABL Facility and FILO Facility. See Note 9 for further information. | |
As a result of the TriCan acquisition in November 2012, the RTD, TDI and WTD acquisitions in fiscal 2013 and the 2014 Acquisitions, the carrying value of the acquired inventory was increased by $6.3 million, $2.7 million, $0.2 million, $0.5 million, and $34.4 million, respectively, to adjust to estimated fair value in accordance with the accounting guidance for business combinations. The step-up in inventory value is amortized into cost of goods sold over the period of the Company’s normal inventory turns, which approximates two months. Amortization of the inventory step-up included in cost of goods sold in the accompanying consolidated statements of comprehensive income (loss) for the fiscal years ended January 3, 2015, December 28, 2013 and December 29, 2012 was $35.9 million, $5.4 million and $4.1 million, respectively. |
Assets_Held_for_Sale
Assets Held for Sale | 12 Months Ended |
Jan. 03, 2015 | |
Assets Held for Sale | 5. Assets Held for Sale: |
In accordance with current accounting standards, the Company classifies assets as held for sale in the period in which all held for sale criteria is met. Assets held for sale are reported at the lower of their carrying amount or fair value less cost to sell and are no longer depreciated. At January 3, 2015, the Company had $0.8 million classified as assets held for sale which related to residential properties that were acquired as part of employee relocation packages. The Company is actively marketing these properties and anticipates that they will be sold within a twelve-month period from the date in which they are classified as held for sale. | |
During third quarter 2013, the Company classified a facility located in Georgia as held for sale. The facility was previously used as a distribution center within the Company’s operations until its activities were relocated to an expanded facility. During fiscal 2014, the Company received $0.4 million in cash for the sale of this facility. | |
As part of the Terry’s Tire acquisition, the Company acquired Terry’s Tire’s commercial and retread businesses. See Note 3 for additional information regarding this acquisition. As it was management’s intention to divest the commercial and retread businesses during fiscal 2014 and as all held for sale criteria had been met, the related assets and liabilities of the commercial and retread businesses were classified as held for sale at the acquisition date. On July 31, 2014, the Company received $3.9 million in cash for the sale of the commercial and retread businesses. See Note 19 for additional information. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||
Jan. 03, 2015 | |||||||||
Property and Equipment | 6. Property and Equipment: | ||||||||
The following table represents the major classes of property and equipment at January 3, 2015 and December 28, 2013: | |||||||||
January 3, | December 28, | ||||||||
In thousands | 2015 | 2013 | |||||||
Land | $ | 4,724 | $ | 1,665 | |||||
Buildings and leasehold improvements | 36,586 | 22,811 | |||||||
Machinery and equipment | 54,727 | 27,515 | |||||||
Furniture and fixtures | 57,416 | 46,459 | |||||||
Software | 164,039 | 117,607 | |||||||
Vehicles and other | 9,868 | 3,111 | |||||||
Total property and equipment | 327,360 | 219,168 | |||||||
Less - Accumulated depreciation | (106,894 | ) | (71,312 | ) | |||||
Property and equipment, net | $ | 220,466 | $ | 147,856 | |||||
Depreciation expense was $38.6 million for the fiscal year ended January 3, 2015, $29.5 million for the fiscal year ended December 28, 2013 and $23.1 million for the fiscal year ended December 29, 2012. Depreciation expense is classified in selling, general and administrative expense in the accompanying consolidated statements of comprehensive income (loss). | |||||||||
Included in the above table within Land and Buildings and leasehold improvements are assets under capital leases related to the sale and leaseback of two of the Company’s owned facilities (see Note 9). The net book value of these assets at January 3, 2015 and December 28 2013 was $6.7 million and $6.9 million, respectively. Accumulated depreciation was $1.4 million and $1.1 million for the respective periods. Depreciation expense was $0.3 million, $0.3 million and $0.2 million for the fiscal years ended January 3, 2015, December 28, 2013 and December 29, 2012. |
Goodwill
Goodwill | 12 Months Ended | ||||||||
Jan. 03, 2015 | |||||||||
Goodwill | 7. Goodwill: | ||||||||
The Company records as goodwill the excess of the purchase price over the fair value of the net assets acquired. Once the final valuation has been performed for each acquisition, adjustments may be recorded. Goodwill is tested and reviewed annually for impairment during the fourth quarter or whenever there is a significant change in events or circumstances that indicate that the fair value of the asset may be less than the carrying amount of the asset. | |||||||||
The changes in the carrying amount of goodwill are as follows: | |||||||||
January 3, | December 28, | ||||||||
In thousands | 2015 | 2013 | |||||||
Beginning balance | $ | 504,333 | $ | 483,143 | |||||
Purchase accounting adjustments | 128 | (1,349 | ) | ||||||
Acquisitions | 238,871 | 25,408 | |||||||
Currency translation | (10,078 | ) | (2,869 | ) | |||||
Ending balance | $ | 733,254 | $ | 504,333 | |||||
As of January 3, 2015, the Company has recorded goodwill of $733.3 million, of which approximately $165 million of net goodwill is deductible for income tax purposes in future periods. The balance primarily relates to the TPG Merger on May 28, 2010, in which $418.6 million was recorded as goodwill. The Company does not have any accumulated goodwill impairment losses. | |||||||||
On November 3, 2014, TriCan completed the acquisition of RTD BC. The purchase price was preliminarily allocated to the assets acquired and liabilities assumed based on the estimated fair market value at the date of acquisition. As a result, the Company recorded $1.6 million as goodwill. See Note 3 for additional information. | |||||||||
During third quarter 2014, the Company acquired the assets and liabilities of several small Canadian businesses. The purchase price for each business was preliminarily allocated to the assets acquired and liabilities assumed based on their estimated fair market value at the date of acquisition. As part of the preliminary purchase price allocation, the Company allocated $3.3 million to finite-lived intangible assets related to noncompete agreements with useful lives ranging between two and five years. The excess of the purchase price over the amounts allocated to identifiable assets and liabilities is included in goodwill, and amounted to $0.1 million. | |||||||||
On June 27, 2014, TriCan completed its acquisition of the wholesale distribution businesses of Trail Tire, Extreme Wheel, Kirks Tire, RTD Edmonton and RTD Calgary. The purchase price has been preliminarily allocated to assets acquired and liabilities assumed based on the estimated fair market value of such assets and liabilities at the date of acquisition. As a result, the Company recorded $6.6 million, $1.5 million, $25.6 million, $8.9 million and $8.8 million, respectively, as goodwill. See Note 3 for additional information. | |||||||||
On March 28, 2014, ATDI completed its acquisition of Terry’s Tire pursuant to a Stock Purchase Agreement entered into on February 17, 2014. The purchase price has been allocated to assets acquired and liabilities assumed based on the estimated fair market value of such assets and liabilities at the date of acquisition. During the second quarter of 2014, the Company finalized the post-closing working capital adjustments in accordance with the purchase agreement. This adjustment decreased goodwill by $5.4 million to $112.0 million at January 3, 2015. See Note 3 for additional information. | |||||||||
On January 31, 2014, the Company completed its acquisition of Hercules pursuant to an Agreement and Plan of Merger dated January 24, 2014. The purchase price has been allocated to assets acquired and liabilities assumed based on the estimated fair market value of such assets and liabilities at the date of acquisition. During second quarter 2014, the Company finalized the post-closing working capital adjustments in accordance with the Merger Agreement. This adjustment decreased goodwill by $0.4 million to $73.7 million at January 3, 2015. See Note 3 for additional information. | |||||||||
On December 13, 2013, TriCan entered into a share Purchase Agreement to acquire all of the issued and outstanding common shares of WTD. The acquisition was funded through cash on hand. The purchase price has been allocated to assets acquired and liabilities assumed based on the estimated fair market value of such assets and liabilities at the date of acquisition. During first quarter 2014, the Company finalized the post-closing working capital adjustments in accordance with the purchase agreement. This increased goodwill by $0.1 million to a total of $1.2 million. See Note 3 for additional information. |
Intangible_Assets
Intangible Assets | 12 Months Ended | ||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||
Intangible Assets | 8. Intangible Assets: | ||||||||||||||||
Indefinite-lived intangible assets are tested and reviewed annually for impairment during the fourth quarter or whenever there is a significant change in events or circumstances that indicate that the fair value of the asset may be less than the carrying amount of the asset. All other intangible assets with finite lives are being amortized on a straight-line basis or accelerated basis over periods ranging from one to nineteen years. | |||||||||||||||||
The following table sets forth the gross amount and accumulated amortization of the Company’s intangible assets at January 3, 2015 and December 28, 2013: | |||||||||||||||||
January 3, 2015 | December 28, 2013 | ||||||||||||||||
Gross | Accumulated | Gross | Accumulated | ||||||||||||||
In thousands | Amount | Amortization | Amount | Amortization | |||||||||||||
Customer lists | $ | 1,101,389 | $ | 328,403 | $ | 677,062 | $ | 226,614 | |||||||||
Noncompete agreements | 21,143 | 10,459 | 12,007 | 6,400 | |||||||||||||
Favorable leases | 1,017 | 300 | 688 | 119 | |||||||||||||
Tradenames | 12,592 | 4,154 | 10,531 | 3,754 | |||||||||||||
Total finite-lived intangible assets | 1,136,141 | 343,316 | 700,288 | 236,887 | |||||||||||||
Tradenames (indefinite-lived) | 249,893 | — | 249,893 | — | |||||||||||||
Total intangible assets | $ | 1,386,034 | $ | 343,316 | $ | 950,181 | $ | 236,887 | |||||||||
At January 3, 2015, the Company had $1,042.7 million of intangible assets. The balance primarily relates to the TPG Merger on May 28, 2010, in which $781.3 million was recorded as intangible assets. As part of the preliminary purchase price allocation of RTD BC, the Company allocated $12.2 million to a finite-lived customer list intangible asset with a useful life of eighteen years. As part of the preliminary purchase price allocation of Trail Tire, Extreme Wheel, Kirks Tire, RTD Edmonton and RTD Calgary, the Company allocated $10.9 million, $4.0 million, $44.0 million, $21.5 million and $9.7 million, respectively, to a finite-lived customer list intangible asset with a useful life of eighteen years. As part of the purchase price allocation of Terry’s Tire, the Company allocated $185.8 million to a finite-lived customer list intangible asset with a useful life of eighteen years and $0.4 million to a favorable leases intangible asset with a useful life of five years. As part of the purchase price allocation of Hercules, the Company allocated $147.2 million to a finite-lived customer list intangible asset with a useful life of eighteen years and $8.5 million to a finite-lived tradename with a useful life of fifteen years. As part of the purchase price allocation of WTD, the Company allocated $4.4 million to a finite-lived customer list intangible asset with a useful life of sixteen years. As part of the purchase price allocation of TDI, the Company allocated $3.4 million to a finite-lived customer list intangible asset with a useful life of sixteen years. As part of the purchase price allocation of RTD, the Company allocated $40.7 million to a finite-lived customer list intangible asset with a useful life of sixteen years, $1.9 million to a finite-lived tradename with a useful life of five years and $0.4 million to a finite-lived favorable leases intangible asset with a useful life of four years. As part of the purchase price allocation of TriCan, the Company allocated $44.6 million to a finite-lived customer list intangible asset with a useful life of sixteen years, $4.9 million to a finite-lived tradename with a useful life of seven years and $0.4 million to a finite-lived favorable leases intangible asset with a useful life of six years. In connection with the acquisition of CTO on May 24, 2012, the Company allocated $15.9 million to a finite-lived customer list intangible asset with a useful life of sixteen years. See Note 3 for additional information. | |||||||||||||||||
Amortization of intangible assets was $114.3 million in fiscal 2014, $76.2 million in fiscal 2013 and $66.2 million in fiscal 2012. Estimated amortization expense on existing intangible assets is expected to approximate $126.0 million in 2015, $106.4 million in 2016, $91.5 million in 2017, $77.4 million in 2018 and $67.9 million in 2019. |
Longterm_Debt
Long-term Debt | 12 Months Ended | ||||||||
Jan. 03, 2015 | |||||||||
Long-term Debt | 9. Long-term Debt: | ||||||||
The following table presents the Company’s long-term debt at January 3, 2015 and at December 28, 2013: | |||||||||
January 3, | December 28, | ||||||||
In thousands | 2015 | 2013 | |||||||
U.S. ABL Facility | $ | 581,167 | $ | 417,066 | |||||
Canadian ABL Facility | 473 | 36,424 | |||||||
U.S. FILO Facility | 80,000 | 51,863 | |||||||
Canadian FILO Facility | — | — | |||||||
Term Loan | 714,175 | — | |||||||
Senior Subordinated Notes | 421,736 | 200,000 | |||||||
Senior Secured Notes | — | 248,219 | |||||||
Capital lease obligations | 12,448 | 12,330 | |||||||
Other | 6,116 | 1,098 | |||||||
Total debt | 1,816,115 | 967,000 | |||||||
Less - Current maturities | (9,768 | ) | (564 | ) | |||||
Long-term debt | $ | 1,806,347 | $ | 966,436 | |||||
The fair value of the Senior Subordinated Notes was $435.4 million at January 3, 2015 and $212.0 million at December 28, 2013 and was estimated using a discounted cash flow analysis with significant inputs that are not observable (Level 3) as there are no quoted prices in active markets for these notes. The fair value of the Term Loan was $718.5 million at January 3, 2015 and was estimated using a discounted cash flow analysis with significant inputs that are not observable (Level 3). The discount rate used in the fair value analysis for the Term Loan was based on borrowing rates available to the Company for debt with the same remaining maturity. The carrying value of the Company’s ABL Facility and FILO Facility approximates fair value due to the variable rate of interest paid. | |||||||||
Aggregate maturities of long-term debt at January 3, 2015 are as follows: | |||||||||
In thousands | |||||||||
2015 | $ | 9,768 | |||||||
2016 | 8,910 | ||||||||
2017 | 670,682 | ||||||||
2018 | 1,116,007 | ||||||||
2019 | 686 | ||||||||
Thereafter | 10,062 | ||||||||
Total | $ | 1,816,115 | |||||||
ABL Facility | |||||||||
On January 31, 2014, in connection with the Hercules acquisition, the Company entered into the Second Amendment to Sixth Amended and Restated Credit Agreement (“Credit Agreement”), which provides for (i) U.S. revolving credit commitments of $850.0 million (of which up to $50.0 million can be utilized in the form of commercial and standby letters of credit), subject to U.S. borrowing base availability (the “U.S. ABL Facility”) and (ii) Canadian revolving credit commitments of $125.0 million (of which up to $10.0 million can be utilized in the form of commercial and standby letters of credit), subject to Canadian borrowing base availability (the “Canadian ABL Facility” and, collectively with the U.S. ABL Facility, the “ABL Facility”). In addition, the Credit Agreement provides (i) the U.S. borrowers under the agreement with a first-in last-out facility (the “U.S. FILO Facility”) in the aggregate principal amount of up to $80.0 million, subject to a borrowing base specific thereto and (ii) the Canadian borrowers under the agreement with a first-in last-out facility (the “Canadian FILO Facility” and collectively with the U.S. FILO Facility, the “FILO Facility”) in an aggregate principal amount of up to $15.0 million, subject to a borrowing base specific thereto. The U.S. ABL Facility is available to ATDI, Am-Pac Tire Dist. Inc., Hercules and any other U.S. subsidiary that the Company designates in the future in accordance with the terms of the Credit Agreement. The Canadian ABL Facility is available to TriCan and any other Canadian subsidiaries that the Company designates in the future in accordance with the terms of the Credit Agreement. Provided that no default or event of default then exists or would arise therefrom, the Company has the option to request that the ABL Facility be increased by an amount not to exceed $175.0 million (up to $25.0 million of which may be allocated to the Canadian ABL Facility), subject to certain rights of the administrative agent, swingline lender and issuing banks providing commitments for such increase. The maturity date for the ABL Facility is November 16, 2017. The maturity date for the FILO Facility is January 31, 2017. During the fiscal year ended January 3, 2015, the Company paid $0.7 million in debt issuance costs related to the ABL Facility and FILO Facility. The debt issuance costs were capitalized to other assets in the consolidated balance sheet. | |||||||||
As of January 3, 2015, the Company had $581.2 million outstanding under the U.S. ABL Facility. In addition, the Company had certain letters of credit outstanding in the aggregate amount of $11.0 million, leaving $236.6 million available for additional borrowings under the U.S. ABL Facility. The outstanding balance of the Canadian ABL Facility at January 3, 2015 was $0.5 million, leaving $124.5 million available for additional borrowings. The outstanding balance of the U.S. FILO Facility at January 3, 2015 was $80.0 million. As of January 3, 2015, no amount was outstanding under the Canadian FILO Facility, leaving $14.8 million available for additional borrowings. | |||||||||
Borrowings under the U.S. ABL Facility bear interest at a rate per annum equal to, at the Company’s option, either (a) 175 basis points over an adjusted LIBOR rate or (b) 75 basis points over an alternative base rate (the higher of the prime rate, the federal funds rate plus 50 basis points and one month-adjusted LIBOR rate plus 100 basis points). The applicable margins under the U.S. ABL Facility are subject to step ups and step downs based on average excess borrowing availability under the ABL Facility. | |||||||||
Borrowings under the Canadian ABL Facility bear interest at a rate per annum equal to, at the Company’s option, either (a) 75 basis points over an alternative Canadian base rate (the higher of the base rate as published by Bank of America, N.A., acting through its Canada branch, the federal funds rate plus 50 basis points and one month-LIBOR plus 100 basis points), (b) 75 basis points over a Canadian prime rate determined in accordance with the Canadian ABL Facility, (c) 175 basis points over a rate determined by reference to the average rate applicable to Canadian Dollar bankers’ acceptances having an identical or comparable term as the proposed loan amount or (d) 175 basis points over an adjusted LIBOR rate. The applicable margins under the Canadian ABL Facility are subject to step ups and step downs based on average excess borrowing availability under the ABL Facility. | |||||||||
Borrowings under the U.S. FILO Facility bear interest at a rate per annum equal to, at the Company’s option, either (a) 325 basis points over an adjusted LIBOR rate or (b) 225 basis points over an alternative base rate (the higher of the prime rate, the federal funds rate plus 50 basis points and one month-adjusted LIBOR plus 100 basis points). The applicable margins under the U.S. FILO Facility are subject to step ups and step downs based on average excess borrowing availability under the ABL Facility. | |||||||||
Borrowings under the Canadian FILO Facility bear interest at a rate per annum equal to, at the Company’s option, either (a) 225 basis points over an alternative Canadian base rate (the higher of the base rate as published by Bank of America, N.A., acting through its Canada branch, the federal funds rate plus 50 basis points and one month-LIBOR plus 100 basis points), (b) 225 basis points over a Canadian prime rate determined in accordance with the Canadian ABL Facility, (c) 325 basis points over a rate determined by reference to the average rate applicable to Canadian Dollar bankers’ acceptances having an identical or comparable term as the proposed loan amount or (d) 325 basis points over an adjusted LIBOR rate. The applicable margins under the Canadian FILO Facility are subject to step ups and step downs based on average excess borrowing availability under the ABL Facility. | |||||||||
The U.S. and Canadian borrowing base at any time equals the sum (subject to certain reserves and other adjustments) of: | |||||||||
• | 85% of eligible accounts receivable of the U.S. or Canadian loan parties, as applicable; plus | ||||||||
• | The lesser of (a) 70% of the lesser of cost or fair market value of eligible tire inventory of the U.S. or Canadian loan parties, as applicable, and (b) 85% of the net orderly liquidation value of eligible tire inventory of the U.S. or Canadian loan parties, as applicable; plus | ||||||||
• | The lesser of (a) 50% of the lower of cost or market value of eligible non-tire inventory of the U.S. or Canadian loan parties, as applicable, and (b) 85% of the net orderly liquidation value of eligible non-tire inventory of the U.S. or Canadian loan parties, applicable. | ||||||||
The U.S. FILO and the Canadian FILO borrowing base at any time equals the sum (subject to certain reserves and other adjustments) of: | |||||||||
• | 5% of eligible accounts receivable of the U.S. or Canadian loan parties, as applicable; plus | ||||||||
• | 10% of the net orderly liquidation value of the eligible tire and non-tire inventory of the U.S. or Canadian loan parties, as applicable. | ||||||||
All obligations under the U.S. ABL Facility and the U.S. FILO Facility are unconditionally guaranteed by Holdings and substantially all of ATDI’s existing and future, direct and indirect, wholly-owned domestic material restricted subsidiaries, other than Tire Pros Francorp. The Canadian ABL Facility and the Canadian FILO Facility are unconditionally guaranteed by the U.S. loan parties, TriCan and any future, direct and indirect, wholly-owned, material restricted Canadian subsidiaries. Obligations under the U.S. ABL Facility and the U.S. FILO Facility are secured by a first-priority lien on inventory, accounts receivable and related assets and a second-priority lien on substantially all other assets of the U.S. loan parties, subject to certain exceptions. Obligations under the Canadian ABL Facility and the Canadian FILO Facility are secured by a first-priority lien on inventory, accounts receivable and related assets of the U.S. loan parties and the Canadian loan parties and a second-priority lien on substantially all other assets of the U.S. loan parties and the Canadian loan parties, subject to certain exceptions. | |||||||||
The ABL Facility and FILO Facility contain customary covenants, including covenants that restrict the Company’s ability to incur additional debt, grant liens, enter into guarantees, enter into certain mergers, make certain loans and investments, dispose of assets, prepay certain debt, declare dividends, modify certain material agreements, enter into transactions with affiliates or change the Company’s fiscal year. The terms of the ABL Facility and FILO Facility generally restrict distributions or the payment of dividends in respect of the Company’s stock subject to certain exceptions requiring compliance with certain availability levels and fixed charge coverage ratios under the ABL Facility and other customary negotiated exceptions. As of January 3, 2015, the Company was in compliance with these covenants. If the amount available for additional borrowings under the ABL Facility is less than the greater of (a) 10.0% of the lesser of (x) the aggregate commitments under the ABL Facility and (y) the aggregate borrowing base and (b) $25.0 million, then the Company would be subject to an additional covenant requiring them to meet a fixed charge coverage ratio of 1.0 to 1.0. As of January 3, 2015, the Company’s additional borrowing availability under the ABL Facility was above the required amount and the Company was therefore not subject to the additional covenants. | |||||||||
Senior Secured Term Loan | |||||||||
In connection with the acquisition of Terry’s Tire, on March 28, 2014, ATDI entered into a credit agreement that provided for a senior secured term loan facility in the aggregate principal amount of $300.0 million (the “Initial Term Loan”). The Initial Term Loan was issued at a discount of 0.25% which, combined with certain debt issuance costs paid at closing, resulted in net proceeds of approximately $290.9 million. The Initial Term Loan will accrete based on an effective interest rate of 6% to an aggregate accreted value of $300.0 million, the full principal amount at maturity. The net proceeds from the Initial Term Loan were used to finance a portion of the Terry’s Tire Purchase Price. | |||||||||
On June 16, 2014, ATDI amended the Initial Term Loan (the “Incremental Amendment”) to borrow an additional $340.0 million (the “Incremental Term Loan”) on the same terms as the Initial Term Loan. Pursuant to the Incremental Amendment, until August 15, 2014 ATDI also had the right to borrow up to an additional $80.0 million (the “Delayed Draw Term Loan” and collectively with the Initial Term Loan and the Incremental Term Loan, the “Term Loan”) on the same terms as the Initial Term Loan. The proceeds from the Incremental Term Loan, net of related debt issuance costs paid at closing, amounted to approximately $335.7 million, and were used, in part, to redeem all $250.0 million aggregate principal amounts of notes outstanding under ATDI’s Senior Secured Notes and related fees and expenses as more fully described below, and the remaining proceeds will be used for working capital requirements and other general corporate purposes, including the financing of potential future acquisitions. The Company received the proceeds from the Delayed Draw Term Loan at the end of the second quarter of 2014. The maturity date for the Term Loan is June 1, 2018. During the fiscal year ended January 3, 2015, the Company paid $14.0 million in debt issuance cost related to the Term Loan. The debt issuance costs were capitalized to other assets in the consolidated balance sheet. | |||||||||
Borrowings under the Term Loan bear interest at a rate per annum equal to, at the Company’s option, either (a) a Eurodollar rate determined by reference to LIBOR, plus an applicable margin of 475 basis points or (b) 375 basis points over an alternative base rate determined by reference of the higher of the federal funds rate plus 50 basis points, the prime rate and 100 basis points over the one month Eurodollar rate. The Eurodollar rate is subject to an interest rate floor of 100 basis points. The applicable margins under the Term Loan are subject to a step down based on a consolidated net leverage ratio, as defined in the agreement. | |||||||||
All obligations under the Term Loan are unconditionally guaranteed by Holdings and, subject to certain customary exceptions, all of ATDI’s existing and future, direct and indirect, wholly-owned domestic material subsidiaries. Obligations under the Term Loan are secured by a first-priority lien on substantially all property, assets and capital stock of ATDI except accounts receivable, inventory and related intangible assets and a second-priority lien on all accounts receivable and related intangible assets. | |||||||||
The Term Loan contains customary covenants, including covenants that restrict the Company’s ability to incur additional debt, create liens, enter into guarantees, enter into certain mergers, make certain loans and investments, dispose of assets, prepay certain debt, declare dividends, modify certain material agreements, enter into transactions with affiliates, change the nature of the Company’s business or change the Company’s fiscal year. The terms of the Term Loan generally restrict distributions or the payment of dividends in respect to the Company’s stock subject to certain exceptions such as the amount of 50% of net income (reduced by 100% of net losses) for the period beginning January 1, 2014 and other customary negotiated exceptions. As of January 3, 2015, the Company was in compliance with these covenants. | |||||||||
The Company was required to make a principal payment under the Term Loan equal to $1.6 million on the last business day of June 2014. Commencing with the last business day of September 2014, the Company is required to make principal payments equal to $1.8 million on the last business day of each March, June, September and December. In addition, subject to certain exceptions, the Company is required to repay the Term Loan in certain circumstances, including with 50% (which percentage will be reduced to 25% and 0%, as applicable, subject to attaining certain senior secured net leverage ratios) of its annual excess cash flow, as defined in the Term Loan agreement. For the fiscal year ended January 3, 2015, the Company did not generate excess cash flow, as defined in the Term Loan agreement; therefore, the Company has no requirement to repay the Term Loan. The Term Loan also contains repayments provision related to non-ordinary course asset or property sales when certain conditions are met, and related to the incurrence of debt that is not permitted under the agreement. | |||||||||
Senior Secured Notes | |||||||||
On May 16, 2014, ATDI delivered a Notice of Full Redemption, providing for the redemption of all $250.0 million aggregate principal amount of the 9.75% Senior Secured Notes (“Senior Secured Notes”) on June 16, 2014 (the “Redemption Date”) at a price equal to 104.875% of the principal amount of the Senior Secured Notes redeemed plus accrued and unpaid interest, if any, to, but excluding the Redemption Date (the “Redemption Price”). On June 16, 2014, using proceeds from the Incremental Term Loan, the Senior Secured Notes were redeemed for a Redemption Price of $263.2 million. In connection with the redemption of the Senior Secured Notes, the Company recorded a loss on extinguishment of debt during fiscal 2014 in the amount of $17.2 million which includes approximately $4.9 million related to the write-off of the unamortized original issuance discount and unamortized deferred financing fees associated with the Senior Secured Notes. | |||||||||
Senior Subordinated Notes | |||||||||
See Note 20 regarding the recent redemption of the Senior Subordinated Notes. | |||||||||
On May 28, 2010, ATDI issued $200.0 million in aggregate principal amount of its 11.50% Senior Subordinated Notes due 2018 (the “Initial Subordinated Notes”). Interest on the Initial Subordinated Notes is payable semi-annually in arrears on June 1 and December 1 of each year, commencing on December 1, 2010. | |||||||||
In connection with the consummation of the Hercules acquisition, on January 31, 2014, ATDI completed the sale to certain purchasers of an additional $225.0 million in aggregate principal amount of its 11.50% Senior Subordinated Notes due 2018 (the “Additional Subordinated Notes” and, collectively with the Initial Subordinated Notes, the “Senior Subordinated Notes”). The Additional Subordinated Notes were issued at a discount from their principal amount at maturity and generated net proceeds of approximately $221.1 million. The Additional Subordinated Notes will accrete based on an effective interest rate of 12% to an aggregate accreted value of $225.0 million, the full principal amount at maturity. During the fiscal year ended January 3, 2015, the Company paid $1.2 million in debt issuance cost related to the Additional Subordinated Notes. The debt issuance costs were capitalized to other assets in the consolidated balance sheet. | |||||||||
The Additional Subordinated Notes have identical terms to the Initial Subordinated Notes except the Additional Subordinated Notes accrue interest from January 31, 2014. The Additional Subordinated Notes and the Initial Subordinated Notes are treated as a single class of securities for all purposes under the indenture. The Senior Subordinated Notes will mature on June 1, 2018. | |||||||||
The Senior Subordinated Notes may be redeemed at any time at the option of ATDI, in whole or in part, upon not less than 30 nor more than 60 days notice at a redemption price of 102.0% of the principal amount if the redemption date occurs between June 1, 2014 and May 31, 2015 and 100.0% of the principal amount if the redemption date occurs between June 1, 2015 and May 31, 2016. | |||||||||
The Senior Subordinated Notes are unconditionally guaranteed by Holdings and substantially all of ATDI’s existing and future, direct and indirect, wholly-owned domestic material restricted subsidiaries, other than Tire Pros Francorp, subject to certain exceptions. | |||||||||
The indenture governing the Senior Subordinated Notes contains covenants that, among other things, limit ATDI’s ability and the ability of its restricted subsidiaries to incur additional debt or issue preferred stock; pay certain dividends or make certain distributions in respect of ATDI’s or repurchase or redeem ATDI’s capital stock; make certain loans, investments or other restricted payments; place restrictions on the ability of ATDI’s subsidiaries to pay dividends or make other payments to ATDI; engage in transactions with stockholders or affiliates; transfer or sell certain assets; guarantee indebtedness or incur other contingent obligations; incur certain liens without securing the Senior Subordinated Notes; consolidate, merge or sell all or substantially all of ATDI’s assets; enter into certain transactions with ATDI’s affiliates; and designate ATDI’s subsidiaries as unrestricted subsidiaries. The terms of the Senior Subordinated Notes generally restrict distributions or the payment of dividends in respect of the Company’s stock subject to certain exceptions such as the amount of 50% of net income (reduced by 100% of net losses) for the period beginning April 4, 2010 and other customary negotiated exceptions. As of January 3, 2015, the Company was in compliance with these covenants. | |||||||||
Capital Lease Obligations | |||||||||
At December 31, 2011, the Company had a capital lease obligation of $14.1 million, which related to the 2002 sale and subsequent leaseback of three of its owned facilities. Due to continuing involvement with the properties, the Company accounted for the transaction as a direct financing lease and recorded the cash received as a financing obligation. The transaction had an initial lease term of 20 years, followed by two 10 year renewal options. No gain or loss was recognized as a result of the initial sales transaction. | |||||||||
On February 1, 2012, the Company reacquired one of the three facilities included in the 2002 sale-leaseback transaction for $1.5 million. Accordingly, the original lease was amended to extend the lease term on the two remaining facilities by 5 years as well as to adjust the future lease payments over the remaining 15 years. Per current accounting guidance, the change in the debt terms was not considered substantial. As a result, the Company treated the amendment as a debt modification for accounting purposes and therefore, reduced the financing obligation by the purchase price. Cash payments to the lessor are allocated between interest expense and amortization of the financing obligation. At the end of the lease term, the Company will recognize the sale of the remaining facilities; however, no gain or loss will be recognized as the financing obligation will equal the expected carrying value of the facilities. At January 3, 2015, the outstanding balance of the financing obligation was $11.9 million. |
Derivative_Instruments
Derivative Instruments | 12 Months Ended | ||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||
Derivative Instruments | 10. Derivative Instruments: | ||||||||||||||||
In the normal course of business, the Company is exposed to the risk associated with exposure to fluctuations in interest rates on its variable rate debt. These fluctuations can increase the cost of financing, investing and operating the business. The Company has used derivative financial instruments to help manage this risk and reduce the impacts of these exposures and not for trading or other speculative purposes. All derivatives are recognized on the consolidated balance sheet at their fair value as either assets or liabilities. Changes in the fair value of contracts that qualify for hedge accounting treatment are recorded in accumulated other comprehensive income (loss), net of taxes, and are recognized in net income (loss) in the statement of comprehensive income (loss) at the time earnings are affected by the hedged transaction. For other derivatives, changes in the fair value of the contract are recognized immediately in net income (loss) in the statement of comprehensive income (loss). | |||||||||||||||||
On October 17, 2014, the Company entered into two forward-starting interest rate swaps (collectively the “4Q14 Swaps”) each of which are used to hedge a portion of the Company’s exposure to changes in its variable interest rate debt. The 4Q14 Swaps in place cover an aggregate notional amount of $600.0 million, of which $300.0 million becomes effective in January 2016 at a fixed interest rate of 2.29% and will expire in January 2021 and $300.0 million becomes effective in January 2017 at a fixed interest rate of 2.44% and will expire in January 2020. The counterparty to each swap is a major financial institution. The 4Q14 Swaps do not meet the criteria to qualify for hedge accounting treatment; therefore, changes in the fair value of each contract is recognized in net income (loss) in the consolidated statement of comprehensive income (loss). | |||||||||||||||||
On September 4, 2013, the Company entered into a spot interest rate swap and two forward-starting interest rate swaps (collectively the “3Q 2013 Swaps”) each of which are used to hedge a portion of the Company’s exposure to changes in its variable interest rate debt. The spot interest rate swap in place covers a notional amount of $100.0 million at a fixed interest rate of 1.145% and expires in September 2016. The forward-starting interest rate swaps in place cover an aggregate notional amount of $100.0 million, of which $50.0 million was effective in September 2014 at a fixed interest rate of 1.464% and will expire in September 2016 and $50.0 million becomes effective in September 2015 at a fixed interest rate of 1.942% and will expire in September 2016. The counterparty to each swap is a major financial institution. The 3Q 2013 Swaps do not meet the criteria to qualify for hedge accounting treatment; therefore, changes in the fair value of each contract is recognized in net income (loss) in the consolidated statement of comprehensive income (loss). | |||||||||||||||||
On August 1, 2012, the Company entered into two interest rate swap agreements (“3Q 2012 Swaps”) used to hedge a portion of the Company’s exposure to changes in its variable interest rate debt. The swaps in place cover an aggregate notional amount of $100.00 million, with each $50.0 million contract having a fixed rate of 0.655% and expiring in June 2016. The counterparty to each swap is a major financial institution. The 3Q 2012 Swaps do not meet the criteria to qualify for hedge accounting treatment; therefore, changes in the fair value of each contract is recognized in net income (loss) in the consolidated statement of comprehensive income (loss). | |||||||||||||||||
On September 23, 2011, the Company entered into two interest rate swap agreements (“3Q 2011 Swaps”) used to hedge a portion of the Company’s exposure to changes in its variable interest rate debt. The swaps in place cover an aggregate notional amount of $100.0 million, of which $50.0 million was at a fixed rate of 0.74% and expired in September 2014 and $50.0 million is at a fixed rate of 1.0% and will expire in September 2015. The counterparty to each swap is a major financial institution. The 3Q 2011 Swaps do not meet the criteria to qualify for hedge accounting treatment; therefore, changes in the fair value of each contract is recognized in net income (loss) in the consolidated statement of comprehensive income (loss). | |||||||||||||||||
On February 24, 2011, the Company entered into two interest rate swap agreements (“1Q 2011 Swaps”) used to hedge a portion of the Company’s exposure to changes in its variable interest rate debt. The swaps in place covered an aggregate notional amount of $75.0 million, of which $25.0 million was at a fixed interest rate of 0.585% and expired in February 2012. The remaining swap covered an aggregate notional amount of $50.0 million at a fixed interest rate of 1.105% and expired in February 2013. The counterparty to each swap was a major financial institution. Neither swap met the criteria to qualify for hedge accounting treatment; therefore, changes in the fair value of each contract were recognized in net income (loss) in the consolidated statement of comprehensive income (loss). | |||||||||||||||||
The following table presents the fair values of the Company’s derivative instruments included within the consolidated balance sheets as of January 3, 2015 and December 28, 2013: | |||||||||||||||||
Liability Derivatives | |||||||||||||||||
Balance Sheet | January 3, | December 28, | |||||||||||||||
In thousands | Location | 2015 | 2013 | ||||||||||||||
Derivatives not designated as hedges: | |||||||||||||||||
3Q 2011 swaps - $100 million notional | Accrued expenses | $ | 287 | $ | 792 | ||||||||||||
3Q 2012 swaps - $100 million notional | Accrued expenses | 220 | 280 | ||||||||||||||
3Q 2013 swaps - $200 million notional | Accrued expenses | 1,718 | 1,880 | ||||||||||||||
4Q 2014 swaps - $600 million notional | Accrued expenses | 5,635 | — | ||||||||||||||
Total | $ | 7,860 | $ | 2,952 | |||||||||||||
The pre-tax effect of the Company’s derivative instruments on the consolidated statement of comprehensive income (loss) was as follows: | |||||||||||||||||
Gain (Loss) Recognized | |||||||||||||||||
Fiscal Year | Fiscal Year | Fiscal Year | |||||||||||||||
Location of | Ended | Ended | Ended | ||||||||||||||
Gain (Loss) | January 3, | December 28, | December 29, | ||||||||||||||
In thousands | Recognized | 2015 | 2013 | 2012 | |||||||||||||
Derivatives not designated as hedges: | |||||||||||||||||
1Q 2011 swap - $50 million notional | Interest Expense | $ | — | $ | 149 | $ | 154 | ||||||||||
1Q 2011 swap - $25 million notional | Interest Expense | — | — | 12 | |||||||||||||
3Q 2011 swaps - $100 million notional | Interest Expense | 505 | 522 | (764 | ) | ||||||||||||
3Q 2012 swaps - $100 million notional | Interest Expense | 60 | 470 | (750 | ) | ||||||||||||
3Q 2013 swaps - $200 million notional | Interest Expense | 162 | (1,880 | ) | — | ||||||||||||
4Q 2014 swaps - $600 million notional | Interest Expense | (5,635 | ) | — | — | ||||||||||||
Total | $ | (4,908 | ) | $ | (739 | ) | $ | (1,348 | ) | ||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | ||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||
Fair Value of Financial Instruments | 11. Fair Value of Financial Instruments: | ||||||||||||||||
The accounting standard for fair value measurements establishes a framework for measuring fair value that is based on the inputs market participants use to determine the fair value of an asset or liability and establishes a fair value hierarchy to prioritize those inputs. The fair value hierarchy is comprised of three levels that are described below: | |||||||||||||||||
• | Level 1 — Inputs based on quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||
• | Level 2 — Inputs other than Level 1 quoted prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. | ||||||||||||||||
• | Level 3 — Unobservable inputs based on little or no market activity and that are significant to the fair value of the assets and liabilities, therefore requiring an entity to develop its own assumptions. | ||||||||||||||||
The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs are obtained from independent sources and can be validated by a third party, whereas unobservable inputs reflect assumptions regarding what a third party would use in pricing an asset or liability based on the best information available under the circumstances. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||
The following table presents the fair value and hierarchy levels for the Company’s assets and liabilities, which are measured at fair value on a recurring basis as of January 3, 2015: | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
In thousands | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | |||||||||||||||||
Benefit trust assets | $ | 3,698 | $ | 3,698 | $ | — | $ | — | |||||||||
Total | $ | 3,698 | $ | 3,698 | $ | — | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Contingent consideration | $ | 9,704 | $ | — | $ | — | $ | 9,704 | |||||||||
Derivative instruments | 7,860 | — | 7,860 | — | |||||||||||||
Total | $ | 17,564 | $ | — | $ | 7,860 | $ | 9,704 | |||||||||
ASC 820 – Fair Value Measurements and Disclosures defines fair value as the exchange price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company determines fair value of its financial assets and liabilities using the following methodologies: | |||||||||||||||||
• | Benefit trust assets — These assets include money market and mutual funds that are the underlying for deferred compensation plan assets, held in a rabbi trust. The fair value of the assets is based on observable market prices quoted in readily accessible and observable markets. | ||||||||||||||||
• | Contingent consideration — As part of the purchase price allocation of Terry’s Tire and Hercules, the Company recorded $12.5 million and $3.5 million, respectively, in contingent consideration liabilities. The fair value was estimated using a discounted cash flow technique with significant inputs that are not observable, including discount rates and probability-weighted cash flows and represents management’s best estimate of the amounts to be paid. The contingent consideration liabilities included $12.3 million related to the retention of certain key members of management as employees of the Company and $3.7 million related to securing the rights to continue to distribute certain tire brands previously distributed by Terry’s Tire and Hercules. Changes in the fair value of the contingent consideration liabilities subsequent to the acquisition dates, primarily resulting from management’s revision of the assessed probabilities of achieving the defined milestones, are recorded to transaction expenses in the consolidated statements of comprehensive income (loss). During fiscal 2014, the Company revised the assessed probabilities related to the contingent consideration liabilities based on current available information which reduced the fair value of the contingent consideration liabilities by $5.1 million with a corresponding decrease to transaction expenses. The recorded contingent consideration liabilities are included in Accrued Expenses in the accompanying consolidated balance sheet and totaled $9.7 million as of January 3, 2015. The Company expects to pay this entire amount during first quarter 2015. | ||||||||||||||||
• | Derivative instruments — These instruments consist of interest rate swaps. The fair value is based upon quoted prices for similar instruments from a financial institution that is counterparty to the transaction. | ||||||||||||||||
The fair values of cash and cash equivalents, restricted cash, accounts receivable and accounts payable approximate their carrying values due to the short-term nature of these instruments. The methodologies used by the Company to determine the fair value of its financial assets and liabilities on a recurring basis at January 3, 2015 are the same as those used at December 28, 2013. As a result, there have been no transfers between Level 1 and Level 2 categories. | |||||||||||||||||
The following table summarizes the changes in the fair value of the Company’s contingent consideration liabilities measured using significant unobservable inputs (Level 3) for the fiscal year ended January 3, 2015: | |||||||||||||||||
Contingent | |||||||||||||||||
In thousands | Consideration | ||||||||||||||||
Balance at December 28, 2013 | $ | — | |||||||||||||||
Contingent consideration liabilities recorded for the Terry’s and Hercules acquisitions | 16,000 | ||||||||||||||||
Changes in the fair value of contingent consideration liabilities | (5,142 | ) | |||||||||||||||
Payment of contingent consideration liabilities | (1,154 | ) | |||||||||||||||
Balance at January 3, 2015 | $ | 9,704 | |||||||||||||||
Employee_Benefits
Employee Benefits | 12 Months Ended | ||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||
Employee Benefits | 12. Employee Benefits: | ||||||||||||||||
The Company accounts for stock-based compensation awards in accordance with ASC 718—Compensation, which requires a fair-value based method for measuring the value of stock-based compensation. Fair value is measured once at the date of grant and is not adjusted for subsequent changes. The Company’s stock-based compensation plans include programs for stock options and restricted stock awards. | |||||||||||||||||
Stock Options | |||||||||||||||||
In August 2010, the Company’s indirect parent company adopted a Management Equity Incentive Plan (the “2010 Plan”), pursuant to which the indirect parent company will grant options to selected employees and directors of the Company. The 2010 Plan, which includes both time-based and performance-based awards, was amended on April 28, 2014 by the board of directors of the Company’s indirect parent, ATD Corporation, to increase the maximum number of shares of common stock for which stock options may be granted under the 2010 Plan, from 52.1 million to 54.4 million. In addition to the increase in the maximum number of shares, on April 28, 2014, the board of directors of the ATD Corporation approved the issuance of stock options to certain members of management. The approved options are for the purchase of up to 4.5 million shares of common stock, have an exercise price of $1.50 per share, and vest over a two-year vesting period. As of January 3, 2015, the Company has 0.3 million shares available for future incentive awards. | |||||||||||||||||
Changes in options outstanding under the 2010 Plan are as follows: | |||||||||||||||||
Weighted | Weighted | ||||||||||||||||
Options | Average | Options | Average | ||||||||||||||
Outstanding | Exercise Price | Exercisable | Exercise Price | ||||||||||||||
December 31, 2011 | 44,598,400 | $ | 1 | 8,710,401 | $ | 1 | |||||||||||
Granted | 2,277,600 | 1.14 | n/a | n/a | |||||||||||||
Exercised | (38,000 | ) | 1 | n/a | n/a | ||||||||||||
Cancelled | (156,400 | ) | 1 | n/a | n/a | ||||||||||||
December 29, 2012 | 46,681,600 | $ | 1.01 | 17,594,936 | $ | 1 | |||||||||||
Granted | 3,500,002 | 1.2 | n/a | n/a | |||||||||||||
Exercised | — | — | n/a | n/a | |||||||||||||
Cancelled | (665,099 | ) | 1.01 | n/a | n/a | ||||||||||||
December 28, 2013 | 49,516,503 | $ | 1.02 | 27,794,844 | $ | 1.01 | |||||||||||
Granted | 4,528,833 | 1.5 | n/a | n/a | |||||||||||||
Exercised | — | — | n/a | n/a | |||||||||||||
Cancelled | — | — | n/a | n/a | |||||||||||||
January 3, 2015 | 54,045,336 | $ | 1.06 | 34,080,079 | $ | 1.03 | |||||||||||
As of January 3, 2015, the aggregate intrinsic value of options outstanding and options exercisable was $23.7 million and $16.0 million, respectively. The aggregate intrinsic value is based on the estimated fair value of the Company’s common stock of $1.50 as of January 3, 2015. The total fair value of shares vested during the fiscal year ended was $3.3 million. No options were exercised during the fiscal year ended January 3, 2015. | |||||||||||||||||
Options granted under the 2010 Plan expire no later than 10 years from the date of grant and vest based on the passage of time and/or the achievement of certain performance targets in equal installments over two, three or five years. The weighted-average remaining contractual term for options outstanding and exercisable at January 3, 2015 was 5.7 years and 5.5 years, respectively. The fair value of each of the Company’s time-based stock option awards is expensed on a straight-line basis over the requisite service period, which is generally the two, three or five-year vesting period of the options. However, for options granted with performance target requirements, compensation expense is recognized when it is probable that both the performance target will be achieved and the requisite service period is satisfied. At January 3, 2015 unrecognized compensation expense related to non-vested options granted under the 2010 Plan totaled $7.3 million and the weighted-average period over which this expense will be recognized is 1.0 years. | |||||||||||||||||
The weighted average fair value of the stock options granted during the fiscal years ended January 3, 2015, December 28, 2013 and December 29, 2012 was $0.68, $0.54 and $0.50, respectively, using the Black-Scholes option pricing model. The following weighted average assumptions were used: | |||||||||||||||||
Fiscal Year Ended | |||||||||||||||||
January 3, | December 28, | December 29, | |||||||||||||||
2015 | 2013 | 2012 | |||||||||||||||
Risk-free interest rate | 1.73 | % | 1.38 | % | 1.48 | % | |||||||||||
Dividend yield | — | — | — | ||||||||||||||
Expected life | 5.80 years | 6.0 years | 6.5 years | ||||||||||||||
Volatility | 46.49 | % | 45.39 | % | 42.81 | % | |||||||||||
As the Company does not have sufficient historical volatility data for the Company’s own common stock, the stock price volatility utilized in the fair value calculation is based on the Company’s peer group in the industry in which it does business. The risk-free interest rate is based on the yield curve of a zero-coupon U.S. Treasury bond on the date the award is granted with a maturity equal to the expected term of the award. Because the Company does not have relevant data available regarding the expected life of the award, the expected life of the award is derived from the Simplified Method as allowed under SAB Topic 14. | |||||||||||||||||
Restricted Stock | |||||||||||||||||
In October 2010, the Company’s indirect parent company adopted the Non-Employee Director Restricted Stock Plan (the “2010 Restricted Stock Plan”), pursuant to which the indirect parent company will grant restricted stock to non-employee directors of the Company. These awards entitle the holder to receive one share of common stock for each restricted stock award granted. The 2010 Restricted Stock Plan provides that a maximum of 0.8 million shares of common stock of the Company may be granted to non-employee directors of the Company, of which 0.2 million remain available at January 3, 2015 for future incentive awards. On April 28, 2014, the board of directors of the Company approved the issuance of restricted stock to the non-employee directors of the Company. The approved restricted stock awards were for the issuance of up to 0.1 million shares of common stock, have a grant date fair value of $1.50 per share and vest over a two-year vesting period. | |||||||||||||||||
The following table summarizes restricted stock activity under the 2010 Restricted Stock Plan: | |||||||||||||||||
Weighted | |||||||||||||||||
Number | Average | ||||||||||||||||
of Shares | Exercise Price | ||||||||||||||||
Outstanding and unvested at December 31, 2011 | 175,000 | $ | 1 | ||||||||||||||
Granted | 219,298 | 1.14 | |||||||||||||||
Vested | (125,000 | ) | 1 | ||||||||||||||
Cancelled | — | — | |||||||||||||||
Outstanding and unvested at December 29, 2012 | 269,298 | $ | 1.11 | ||||||||||||||
Granted | — | — | |||||||||||||||
Vested | (159,649 | ) | 1.1 | ||||||||||||||
Cancelled | (21,930 | ) | 1.14 | ||||||||||||||
Outstanding and unvested at December 28, 2013 | 87,719 | $ | 1.14 | ||||||||||||||
Granted | 133,333 | 1.5 | |||||||||||||||
Vested | (87,719 | ) | 1.14 | ||||||||||||||
Cancelled | — | — | |||||||||||||||
Outstanding and unvested at January 3, 2015 | 133,333 | $ | 1.5 | ||||||||||||||
The fair value of each of the restricted stock awards is measured as the grant-date price of the common stock and is expensed on a straight- line basis over the requisite service period, which is generally the two-year vesting period. At January 3, 2015, unrecognized compensation expense related to non-vested restricted stock awards granted under the 2010 Restricted Stock Plan totaled $0.1 million and the weighted-average period over which this expense will be recognized is 1.0 years. | |||||||||||||||||
Compensation Expense | |||||||||||||||||
Stock-based compensation expense is included in selling general and administrative expenses within the accompanying consolidated statement of comprehensive income (loss). The amount of compensation expense recognized during a period is based on the portion of the granted awards that are expected to vest. Ultimately, the total expense recognized over the vesting period will equal the fair value of the awards as of the grant date that actually vest. The following table summarizes the compensation expense recognized: | |||||||||||||||||
Fiscal Year Ended | |||||||||||||||||
January 3, | December 28, | December 29, | |||||||||||||||
In thousands | 2015 | 2013 | 2012 | ||||||||||||||
Stock Options | $ | 4,292 | $ | 2,524 | $ | 4,118 | |||||||||||
Restricted Stock | 100 | 110 | 231 | ||||||||||||||
Total | $ | 4,392 | $ | 2,634 | $ | 4,349 | |||||||||||
In December 2014, the compensation committee of the Company’s indirect parent, ATD Corporation, approved an amendment to all outstanding stock options for certain eligible retiring employees to provide that all unvested stock options for each employee remain outstanding for 24 months following their termination and will remain eligible to vest in accordance with their terms during this period. Additionally, the amendment provided that each employee has 24 months following their termination to exercise any vested stock options. The modification of these stock options, which contemplated the fair value of the awards both immediately before and after the modification, resulted in total incremental compensation cost of $1.7 million, of which $0.8 million was recognized during the fiscal year ended January 3, 2015. The incremental fair value of the options that were modified was calculated using a Black-Scholes option pricing model. The assumptions used in the Black-Scholes model with respect to the modified stock options were an expected term of 2 years, no dividend yield, an expected stock price volatility of 46.49% and a risk free interest rate of 0.67%. The assumptions used in the Black-Scholes model with respect to the stock options immediately before their modification were an expected term of 0.3 years, no dividend yield, an expected stock price volatility of 46.49% and a risk free interest rate of 0.04%. | |||||||||||||||||
Deferred Compensation Plan | |||||||||||||||||
The Company has a deferred compensation plan for its top executives and divisional employees covered by the executive bonus plan to encourage each participant to promote the long-term interests of the Company. Each participant is allowed to defer portions of their annual salary as well as bonuses received into the plan. In addition to employee deferrals, the Company makes contributions on behalf of its top executives and certain of the divisional employees in varying amounts. The plan provides that an employee who becomes a participant on or before November 23, 1998, shall be fully vested in all amounts credited to such participant’s account. An employee who becomes a participant after November 23, 1998 shall be at all times fully vested in elective deferrals into such participant’s account and, as to contributions made by the Company, shall vest at a rate of twenty percent (20%) per year as long as such participant is an employee on January 1 of each year. The deferred compensation plan may be altered and amended by the Company’s board of directors. | |||||||||||||||||
At January 3, 2015, the Company’s obligation related to its deferred compensation plan was $3.7 million, recorded in the consolidated balance sheet within other non-current liabilities. At December 28, 2013, the Company’s obligation related to its deferred compensation plan was $3.4 million. The Company provides for funding of the obligation through a Rabbi Trust, which holds various investments, including mutual funds and money market funds. Amounts related to the Rabbi Trust were $3.7 million and $3.4 million at January 3, 2015 and December 28, 2013, respectively, and are recorded in the consolidated balance sheets within other non-current assets. Contributions made by the Company on behalf of its employees were less than $0.1 million during fiscal 2014, 2013 and 2012. | |||||||||||||||||
401(k) Plans | |||||||||||||||||
The Company maintains a qualified profit sharing and 401(k) plan for eligible employees. All accounts are funded based on employee contributions to the plan, with the limits of such contributions determined by the board of directors. Effective January 1, 2002, the benefit formula for all participants was determined to be a match of 50% of participant contributions, up to 6% of their compensation. The plan also provides for contributions in such amounts as the board of directors may annually determine for the profit sharing portion of the plan. Employees vest in the 401(k) match and profit sharing contribution over a 5-year period. | |||||||||||||||||
The Company match of participant contributions is recorded within selling, general and administrative expense. For the fiscal years ended January 3, 2015, December 28, 2013 and December 29, 2012, the Company contributed $3.4 million, $2.8 million and $2.0 million, respectively. |
Other_net
Other, net | 12 Months Ended |
Jan. 03, 2015 | |
Other, net | 13. Other, net: |
Other, net is comprised of non-operating income and expenses that primarily relate to bank fees, gains and losses on foreign currency and financing service fees charged to customers. Non-operating income for the fiscal years ended January 3, 2015, December 28, 2013 and December 29, 2012 totaled $4.3 million, $3.0 million and $2.8 million, respectively. Non-operating expenses for the fiscal years ended January 3, 2015, December 28, 2013 and December 29, 2012 totaled $9.1 million, $8.2 million and $6.7 million, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Jan. 03, 2015 | |||||
Commitments and Contingencies | 14. Commitments and Contingencies: | ||||
Leases | |||||
The Company leases land, buildings, equipment and vehicles under various noncancellable operating leases, which expire between 2015 and 2027. Future minimum lease commitments, net of sublease income, at January 3, 2015 are as follows: | |||||
In thousands | |||||
2015 | $ | 100,966 | |||
2016 | 85,186 | ||||
2017 | 75,917 | ||||
2018 | 65,634 | ||||
2019 | 58,020 | ||||
Thereafter | 195,595 | ||||
Total | $ | 581,318 | |||
The Company’s rent expense, net of sublease income, under these operating leases was $119.8 million in fiscal 2014, $92.9 million in fiscal 2013 and $75.1 million in fiscal 2012. | |||||
On March 27, 2002, the Company completed an agreement for the sale and leaseback of three of its owned facilities. On February 1, 2012, the Company reacquired one of the three facilities included in the 2002 sale-leaseback transaction. Accordingly, the original lease was amended to extend the lease term on the two remaining facilities by 5 years as well as to adjust the future lease payments over the remaining 15 years. The Company reports this transaction as a capital lease using direct financing lease accounting. As such, the Company has a capital lease obligation of $11.9 million at January 3, 2015. See Note 9 for more information on this capital lease. Obligations under the Company’s other capital leases are not material. | |||||
The Company remains liable as a guarantor on certain leases related to Winston Tire Company. As of January 3, 2015, the Company’s total obligations, as guarantor on these leases, are approximately $1.2 million extending over four years. However, the Company has secured assignments or sublease agreements for the vast majority of these commitments with contractually assigned or subleased rentals of approximately $1.0 million. A provision has been made for the net present value of the estimated shortfall. | |||||
Legal and Tax Proceedings | |||||
The Company is involved from time to time in various lawsuits, including class action lawsuits as well as various audits and reviews regarding its federal, state and local tax filings, arising out of the ordinary conduct of its business. Management does not expect that any of these matters will have a material adverse effect on the Company’s business or consolidated financial statements. As to tax filings, the Company believes that the various tax filings have been made in a timely fashion and in accordance with applicable federal, state, foreign and local tax code requirements. Additionally, the Company believes that it has adequately provided for any reasonably foreseeable resolution of any tax disputes, but will adjust its reserves if events so dictate in accordance with FASB authoritative guidance. To the extent that the ultimate results differ from the original or adjusted estimates of the Company, the effect will be recorded in accordance with the accounting standards for income taxes. See Note 15 for further description of the accounting standards for income taxes and the related impacts. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Income Taxes | 15. Income Taxes: | ||||||||||||
The Company’s income (loss) from operations before income taxes was taxed within the following jurisdictions: | |||||||||||||
Fiscal Year Ended | |||||||||||||
January 3, | December 28, | December 29, | |||||||||||
In thousands | 2015 | 2013 | 2012 | ||||||||||
United States | $ | (138,001 | ) | $ | (11,168 | ) | $ | (15,621 | ) | ||||
Foreign | (9,961 | ) | 866 | (4,403 | ) | ||||||||
Total | $ | (147,962 | ) | $ | (10,302 | ) | $ | (20,024 | ) | ||||
The Company’s income tax provision (benefit) consisted of the following components: | |||||||||||||
Fiscal Year Ended | |||||||||||||
January 3, | December 28, | December 29, | |||||||||||
In thousands | 2015 | 2013 | 2012 | ||||||||||
Federal: | |||||||||||||
Current provision (benefit) | $ | (9,574 | ) | $ | 13,944 | $ | 5,420 | ||||||
Deferred provision (benefit) | (34,567 | ) | (18,141 | ) | (9,802 | ) | |||||||
Total | (44,141 | ) | (4,197 | ) | (4,382 | ) | |||||||
State: | |||||||||||||
Current provision (benefit) | 1,218 | 3,707 | 1,884 | ||||||||||
Deferred provision (benefit) | (8,118 | ) | (3,644 | ) | (2,037 | ) | |||||||
Total | (6,900 | ) | 63 | (153 | ) | ||||||||
Foreign: | |||||||||||||
Current provision (benefit) | 4,267 | 1,963 | 49 | ||||||||||
Deferred provision (benefit) | (6,902 | ) | (1,774 | ) | (1,192 | ) | |||||||
Total | (2,635 | ) | 189 | (1,143 | ) | ||||||||
Total provision (benefit) | $ | (53,676 | ) | $ | (3,945 | ) | $ | (5,678 | ) | ||||
The provision (benefit) for income taxes differs from the amount of income taxes computed by applying the applicable U.S. statutory federal income tax rate of 35% to pretax income (loss), as a result of the following differences: | |||||||||||||
Fiscal Year Ended | |||||||||||||
January 3, | December 28, | December 29, | |||||||||||
In thousands | 2015 | 2013 | 2012 | ||||||||||
Income tax provision (benefit) computed at the federal statutory rate | $ | (51,787 | ) | $ | (3,608 | ) | $ | (7,008 | ) | ||||
State income taxes, net of federal income tax provision (benefit) | (4,485 | ) | 676 | (100 | ) | ||||||||
Benefit of lower foreign rate | 782 | (84 | ) | 395 | |||||||||
Permanent differences | 489 | 652 | 437 | ||||||||||
Debt issuance costs | (425 | ) | (244 | ) | (221 | ) | |||||||
Non-deductible transaction costs | 1,375 | 566 | 430 | ||||||||||
Tax settlements and other adjustments to uncertain tax positions (1) | — | (1,542 | ) | 138 | |||||||||
Increase (decrease) in valuation allowance | (192 | ) | (281 | ) | 132 | ||||||||
Other | 567 | (80 | ) | 119 | |||||||||
Income tax provision (benefit) | $ | (53,676 | ) | $ | (3,945 | ) | $ | (5,678 | ) | ||||
-1 | The amount for the year ended December 28, 2013 reflects the lapse of uncertain tax positions for three tax years due to the settlement of an IRS audit during that year. | ||||||||||||
Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting purposes and (b) operating loss and tax credit carry-forwards. As of January 3, 2015 and December 28, 2013, amounts related to deferred income taxes have been classified in the accompanying consolidated balance sheet as follows: | |||||||||||||
January 3, | December 28, | ||||||||||||
In thousands | 2015 | 2013 | |||||||||||
Deferred tax assets (liabilities): | |||||||||||||
Current | $ | 26,802 | $ | 15,719 | |||||||||
Noncurrent | (291,106 | ) | (270,576 | ) | |||||||||
Total | $ | (264,304 | ) | $ | (254,857 | ) | |||||||
The tax effects of the significant temporary differences that comprise deferred tax assets and liabilities at January 3, 2015 and December 28, 2013 for the Company are as follows: | |||||||||||||
January 3, | December 28, | ||||||||||||
In thousands | 2015 | 2013 | |||||||||||
Deferred tax assets: | |||||||||||||
Accrued expenses and liabilities | $ | 19,473 | $ | 8,686 | |||||||||
Net operating loss carry-forwards | 1,691 | 1,233 | |||||||||||
Employee benefits | 11,455 | 9,622 | |||||||||||
Inventory cost capitalization | 11,805 | 6,359 | |||||||||||
Other assets | (1,384 | ) | (925 | ) | |||||||||
Other | 5,094 | 5,214 | |||||||||||
Gross deferred tax assets | 48,134 | 30,189 | |||||||||||
Less: Deferred tax valuation allowances | (533 | ) | (750 | ) | |||||||||
Net deferred tax assets | 47,601 | 29,439 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation and amortization of intangibles | (310,981 | ) | (283,033 | ) | |||||||||
Other comprehensive income | (244 | ) | — | ||||||||||
Other | (680 | ) | (1,263 | ) | |||||||||
Gross deferred tax liabilities | (311,905 | ) | (284,296 | ) | |||||||||
Net deferred tax assets (liabilities) | $ | (264,304 | ) | $ | (254,857 | ) | |||||||
As part of the acquisition of the Company by TPG, the Company generated substantial tax deductions relating to the exercise of stock options and payments made for transaction expenses. At January 3, 2015, the balance of this acquired non-current deferred tax asset is $8.7 million, which represents the anticipated tax benefits that the Company expects to achieve in future years from such deductions. The remaining net deferred tax liability primarily relates to the expected future tax liability associated with the non-deductible, identified, intangible assets that were recorded during the TPG Merger less existing tax deductible intangibles, assuming an effective tax rate of 39.6%. It is the Company’s intention to indefinitely reinvest all undistributed earnings of non-U.S. subsidiaries. As these earnings are considered permanently reinvested, no provisions for U.S. federal or state income taxes are required under ASC 740-30. Determination of the amount of unrecognized U.S. federal and state deferred tax liabilities on these unremitted earnings is not practicable. | |||||||||||||
Management regularly reviews the recoverability of deferred tax assets, and where appropriate, establishes a valuation allowance against them. The Company concluded that certain deferred tax assets related to certain capital losses do not meet the requirement of being more likely than not that they will be realized. As a result, the Company established a valuation allowance against them. | |||||||||||||
At January 3, 2015, the Company had $1.6 million of NOLs available for federal tax purposes as well as $25.0 million available for state tax purposes. The NOLs are available to offset taxable income in future years and expire between 2015 and 2030. While the Company has generated net losses during the last three years, the Company expects to generate taxable income in future years based on its long-term expected profitability as well as significant unfavorable tax adjustments related to non-deductible, identified intangible assets. Therefore, the Company expects to utilize these NOLs prior to their expiration date. | |||||||||||||
At January 3, 2015, the Company had unrecognized tax benefits of $0.4 million, which was included within accrued expenses within the accompanying consolidated balance sheet. The total amount of unrecognized tax benefits that, if recognized, would affect the Company’s effective tax rate is $0.1 million as of January 3, 2015. In addition, $0.3 million related to temporary timing differences. | |||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||||
January 3, | December 28, | December 29, | |||||||||||
In thousands | 2015 | 2013 | 2012 | ||||||||||
Beginning balance | $ | 706 | $ | 1,953 | $ | 1,815 | |||||||
(Reductions) additions based on tax positions related to the current year, net | (298 | ) | (688 | ) | 138 | ||||||||
Reductions for lapse in statute of limitations | — | (559 | ) | — | |||||||||
Ending balance | $ | 408 | $ | 706 | $ | 1,953 | |||||||
During the next 12 months, management does not believe it is reasonably possible that there will be a significant change in the Company’s uncertain tax benefits. | |||||||||||||
While the Company believes that it has adequately provided for all tax positions, amounts asserted by taxing authorities could be greater than the Company’s accrued position. Accordingly, additional provisions of federal and state-related matters could be recorded in the future as revised estimates are made or the underlying matters are settled or otherwise resolved. | |||||||||||||
The Company files federal income tax returns, as well as multiple state jurisdiction tax returns. The tax years 2011 – 2014 remain open to examination by the Internal Revenue Service. The tax years 2011 – 2014 remain open to examination by other major taxing jurisdictions to which the Company is subject (primarily Canada and other state and local jurisdictions). | |||||||||||||
In September 2013, the Internal Revenue Service released final Tangible Property Regulations (the “Final Regulations”). The Final Regulations provide guidance on applying Section 263(a) of the Code to amounts paid to acquire, produce or improve tangible property, as well as rules for materials and supplies (Code Section 162). These regulations contain certain changes from the temporary and proposed tangible property regulations that were issued on December 27, 2011. The Final Regulations are generally effective for taxable years beginning on or after January 1, 2014. During 2012, the Company filed a change in tax methodology related to a section of the Final Regulations, specifically the methodology for repairs and maintenance deductions. |
Stockholders_Equity
Stockholder's Equity | 12 Months Ended |
Jan. 03, 2015 | |
Stockholder's Equity | 16. Stockholder’s Equity |
In connection with the Merger on May 28, 2010, TPG and certain co-investors contributed $675.4 million through the purchase of common stock in Holdings indirect parent company. In accordance with push-down accounting, the basis in these shares of common stock has been pushed down from the indirect parent company to Holdings and recorded in additional paid-in capital. Subsequent to May 28, 2010, certain members of Holdings management and certain board members purchased common stock in Holdings indirect parent company. At January 3, 2015 and December 28, 2013, these amounts totaled $8.7 million. Accordingly, the Company recorded the basis in these shares in additional paid-in capital. | |
On November 30, 2012, TPG and certain co-investors contributed $60.0 million through the purchase of 50.0 million shares of common stock in Holdings indirect parent company. The proceeds from this equity contribution were used to fund a portion of the purchase price for the acquisition of TriCan. On January 31, 2014, TPG and certain co-investors contributed $50.0 million through the purchase of 33.3 million shares of common stock in Holdings indirect parent company. The proceeds from this equity contribution were used to fund a portion of the Hercules Closing Purchase Price. Accordingly, the Company recorded the basis in these shares in additional paid-in capital. See Note 3 for additional information related to the Hercules and TriCan acquisitions. | |
Common Stock | |
The authorized share capital of Holdings is $10, consisting of 1,000 common shares, par value $0.01. At January 3, 2015, Accelerate Holdings Corp. owns 100% of Holdings issued and outstanding common stock. | |
Accumulated Other Comprehensive Income (Loss) | |
The Company maintains a deferred compensation plan for certain eligible employees, in which the obligation is funded through a Rabbi Trust. Unrealized gains and losses on Rabbi Trust assets are recorded net of tax in accumulated other comprehensive income (loss) and amounted to a gain of $0.0 and $0.2 million at January 3, 2015 and December 28, 2013, respectively. | |
In addition, gains and losses resulting from the translation of foreign currency are recorded in accumulated other comprehensive income (loss) and amounted to a loss of $28.8 million and $9.1 million at January 3, 2015 and December 28, 2013, respectively. |
Related_Party_Transaction
Related Party Transaction | 12 Months Ended |
Jan. 03, 2015 | |
Related Party Transaction | 17. Related Party Transaction: |
Upon the closing of the TPG Merger, the Company entered into a transaction and monitoring fee letter agreement with TPG, a related party that is the beneficial owner of more than 5% of the shares of ATD Corporation, which indirectly owns all of the outstanding shares of Holdings. Pursuant to the transaction and monitoring fee letter agreement, the Company retained TPG to provide certain management, consulting, and financial services to the Company, when and as requested by the Company. The Company agreed to pay TPG a monitoring fee equal to 2.0% of adjusted earnings before interest, taxes, depreciation, amortization and other adjustments (“Adjusted EBITDA”). The monitoring fee is payable in quarterly installments in arrears at the end of each fiscal quarter. From time to time the Company also pay additional fees to such management company in connection with equity financing and acquisition transactions, among other things, in an amount equal to 1% of the total transaction value of each such transaction. In the event of an initial public offering, sale of all or substantially all of the Company’s assets or a change of control transaction, TPG is entitled to receive, on its request and in lieu of any continuing payment of the monitoring fee, an aggregate termination fee of $12.5 million. The Company believes that the fees payable under the transaction and monitoring fee letter agreement, including the termination fee, are comparable to what the Company would have paid an unaffiliated third party to perform the same services. | |
For the fiscal year ended January 3, 2015, the Company recorded $18.8 million in expense related to the monitoring fee for fiscal year 2014, which includes a $13.5 million transaction fee in connection with the acquisitions of Hercules and Terry’s Tire. For the fiscal years ended December 28, 2013 and December 29, 2012, the Company recorded $4.0 million and $5.3 million, respectively in expense related to the monitoring fee for fiscal years 2013 and 2012. These fees are included in management fees in the accompanying consolidated statements of comprehensive income (loss). |
Geographic_Area_Information
Geographic Area Information | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Geographic Area Information | 18. Geographic Area Information: | ||||||||||||
The following table presents net sales and long-lived assets by geographic area. Net sales by country were determined based on the location of the selling subsidiary. Long-lived assets consisted of property and equipment, net. | |||||||||||||
Fiscal Year Ended | |||||||||||||
January 3, | December 28, | December 29, | |||||||||||
In thousands | 2015 | 2013 | 2012 | ||||||||||
Net sales to external customers: | |||||||||||||
United States | $ | 4,387,245 | $ | 3,500,970 | 3,442,481 | ||||||||
Canada | 643,453 | 335,599 | 12,083 | ||||||||||
Total | $ | 5,030,698 | $ | 3,836,569 | $ | 3,454,564 | |||||||
Fiscal Year Ended | |||||||||||||
January 3, | December 28, | ||||||||||||
In thousands | 2015 | 2013 | |||||||||||
Long-lived assets: | |||||||||||||
United States | $ | 201,459 | $ | 141,055 | |||||||||
Canada | 19,007 | 6,801 | |||||||||||
Total | $ | 220,466 | $ | 147,856 | |||||||||
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||
Jan. 03, 2015 | |||||
Discontinued Operations | 19. Discontinued Operations: | ||||
As part of the acquisition of Terry’s Tire, the Company acquired Terry’s Tire’s commercial and retread businesses. As the Company’s core business does not include commercial and retread operations, the Company decided that it would divest of these businesses. As it was management’s intention to divest the commercial and retread businesses during fiscal 2014 and as all held for sale criteria had been met, the related assets and liabilities of the commercial and retread businesses were classified as held for sale at the acquisition date. On July 31, 2014, the Company completed a transaction to sell the commercial and retread businesses for cash proceeds of $3.9 million. The carrying value of the commercial and retread businesses was $4.0 million. During third quarter 2014, the Company finalized the post-closing working capital adjustments which resulted in a payment due to the buyer of approximately $0.2 million. Accordingly, the Company has recognized a pre-tax loss on the sale of discontinued operations of $0.3 million within the accompanying consolidated statements of comprehensive income (loss) for the fiscal year ended January 3, 2015. | |||||
The Company has reflected the results of Terry’s Tire’s commercial and retread businesses as discontinued operations in the accompanying consolidated statement of comprehensive income (loss) for the fiscal year ended January 3, 2015. The components of income (loss) from discontinued operations, net of tax for the fiscal year ended January 3, 2015 were as follows: | |||||
Fiscal Year | |||||
Ended | |||||
January 3, | |||||
In thousands | 2015 | ||||
Net sales | $ | 7,502 | |||
Income (loss) from operations before income taxes | $ | (165 | ) | ||
Loss on sale before income taxes | (346 | ) | |||
Income tax provision (benefit) | (198 | ) | |||
Income (loss) from discontinued operations, net of tax | $ | (313 | ) | ||
Subsequent_Events
Subsequent Events | 12 Months Ended | ||
Jan. 03, 2015 | |||
Subsequent Events | 20. Subsequent Events: | ||
On February 25, 2015, the previously announced transaction with a fund managed by the Private Equity Group of Ares Management, L.P. (“Ares”) closed, whereby Ares acquired a stake in the Company equaling the stake held currently by TPG, the current majority shareholder (the “Ares Transaction”). See Item 10.—“Directors, Executive Officers and Corporate Governance” regarding changes in the board composition of ATD Corporation subsequent to the completion of the Ares Transaction. | |||
In connection with the Ares Transaction, on February 25, 2015, ATD Finance Corp. (the “Initial Issuer”), a wholly owned subsidiary of ATDI, issued $855.0 million in aggregate principal amount of its 10 1⁄4% Senior Subordinated Notes due 2022 (the “10 1⁄4% Subordinated Notes”). The net proceeds from the issuance of the 10 1⁄4% Senior Subordinated Notes were used to fund the redemption of all of ATDI’s outstanding 11.50% Senior Subordinated Notes due 2018, as discussed below, and the remaining net proceeds were used to pay a cash dividend to the Company to enable the Company’s ultimate parent company to fund a cash dividend or other payment to certain of its existing securityholders prior to the Ares Transaction, to pay related fees and expenses and to pay down the Company’s U.S. ABL Facility. Interest on the 10 1⁄4% Subordinated Notes is payable semi-annually in arrears on March 1 and September 1 of each year, beginning on September 1, 2015. The 10 1⁄4% Subordinated Notes will mature on March 1, 2022. Concurrently with the closing of the Ares Transaction, ATDI assumed all of the Initial Issuer’s obligation under the 10 1⁄4% Subordinated Notes. | |||
The 10 1⁄4% Subordinated Notes are not redeemable, except as described below, at the option of ATDI prior to March 1, 2018. Thereafter, the 10 1⁄4% Subordinated Notes may be redeemed at any time at the option of ATDI, in whole or in part, upon not less than 30 or more than 60 days’ notice at a redemption price of 105.125% of the principal amount if the redemption date occurs between March 1, 2018 and February 28, 2019, 102.563% of the principal amount if the redemption date occurs between March 1, 2019 and February 28, 2020 and 100.0% of the principal amount if the redemption date occurs between March 1, 2020 and thereafter. | |||
Prior to March 1, 2018, ATDI may, at its option, on one or more occasions, redeem up to 40.0% of the aggregate principal amount of the 10 1⁄4% Subordinated Notes issued at a redemption price equal to 110.25% of the aggregate principal amount thereof, plus accrued and unpaid interest, to, but not including, the redemption date, with the net cash proceeds of one or more equity offerings; provided that: | |||
-1 | At least 50% of the sum of the aggregate principal amount of the 10 1⁄4% Subordinated Notes remains outstanding immediately after the occurrence of each such redemption; and | ||
-2 | Each such redemption occurs within 120 days of the date of closing of the related equity offering. | ||
In addition, at any time prior to March 1, 2018, ATDI may redeem all or part of the 10 1⁄4% Subordinated Notes, upon not less than 30 or more than 60 days’ notice at a redemption price equal to 100.0% of the principal amount of the notes to be redeemed, plus the applicable premium, as defined in the indenture, as of, and accrued and unpaid interest, to, but not including the redemption date, subject to the rights of the holders on the relevant record date to receive interest due on the relevant interest payment date. | |||
The 10 1⁄4% Subordinated Notes are unconditionally guaranteed, jointly and severally, by Holdings and substantially all of ATDI’s existing and future, direct and indirect, wholly-owned domestic material restricted subsidiaries, other than Tire Pros Francorp, subject to certain exceptions. | |||
The indenture governing the 10 1⁄4% Subordinated Notes contains covenants that, among other things, limits ATDI’s ability and the ability of its restricted subsidiaries to incur or guarantee additional indebtedness or issue preferred stock; pay dividends or distributions on, or redeem or repurchase, its capital stock; prepay, redeem or repurchase certain debt; make certain investments; create liens on its assets; sell assets; agree to any restrictions on the ability of restricted subsidiaries to make payments to ATDI; consolidate, merge or sell or otherwise dispose all or substantially all of ATDI’s assets; engage in transactions with affiliates; and designate restricted subsidiaries as unrestricted subsidiaries. | |||
On February 25, 2015, ATDI redeemed all $425.0 million aggregate principal amount of its 11.50% Senior Subordinated Notes at a price equal to 102.0% of the principal amount of the notes redeemed plus accrued and unpaid interest, to, but excluding the redemption date for a redemption price of $444.9 million. The redemption price was funded by proceeds received from the issuance of the 10 1⁄4% Subordinated Notes. | |||
In connection with the Ares Transaction, the Company amended and restated its existing transaction and monitoring fee letter agreement as discussed in Note 17. Under the amended and restated transaction and monitoring fee letter agreement, the Company will retain a management company affiliated with TPG and a management company affiliated with Ares, and the management companies will provide the Company with certain management services until December 31, 2025, with evergreen one year extensions thereafter. Pursuant to such amended and restated transaction and monitoring fee letter agreement, the management companies will receive an aggregate annual management fee equal to $8 million, and reimbursement for out-of-pocket expenses incurred by them, their members, or their respective affiliates in connection with the provision of services pursuant to the amended and restated transaction and monitoring fee letter agreement. The amended and restated transaction and monitoring fee letter agreement includes customary exculpation and indemnification provisions in favor of the management companies, TPG and Ares and their respective affiliates. The amended and restated transaction and monitoring fee letter agreement will terminate automatically upon an initial public offering of ATDI or certain of its subsidiaries. Upon an initial public offering of ATDI or its affiliated entities, sale of all or substantially all of ATDI’s assets or a change of control, TPG and Ares will each be entitled to receive a payment of $6.25 million. In addition, the management companies are entitled to a fee in connection with any financing, acquisition, disposition or change of control transaction equal to 1% of the gross transaction value, although no such fee was paid in connection with the Ares Transaction. |
SCHEDULE_IIVALUATION_AND_QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNT | 12 Months Ended | ||||||||||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||||||||||
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNT | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||||||||||
For the Fiscal Years ended January 3, 2015, December 28, 2013 and December 29, 2012 | |||||||||||||||||||||||||
Additions | |||||||||||||||||||||||||
Balance | Charged | Charged | |||||||||||||||||||||||
Beginning | to Costs | to Other | Currency | Balance | |||||||||||||||||||||
In thousands | of Year | and Expenses | Accounts | Deductions | Translation | End of Year | |||||||||||||||||||
2014 | |||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 2,169 | $ | 1,489 | $ | — | $ | (745 | ) (1) | $ | (310 | ) | $ | 2,603 | |||||||||||
Acquisition exit cost reserves (2) | 1,210 | 10,924 | — | (5,375 | ) | (306 | ) | 6,453 | |||||||||||||||||
Inventory reserves | 143 | 3,602 | — | (709 | ) | (306 | ) | 2,730 | |||||||||||||||||
Sales returns and allowances | 16,544 | 7,562 | — | (4,379 | ) | (121 | ) | 19,606 | |||||||||||||||||
Valuation allowance on deferred tax assets | 750 | — | (217 | ) | — | 533 | |||||||||||||||||||
2013 | |||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 950 | $ | 1,795 | $ | — | $ | (491 | ) (1) | $ | (85 | ) | $ | 2,169 | |||||||||||
Acquisition exit cost reserves (2) | 1,839 | 636 | — | (1,094 | ) | (171 | ) | 1,210 | |||||||||||||||||
Inventory reserves | 410 | 611 | — | (616 | ) | (262 | ) | 143 | |||||||||||||||||
Sales returns and allowances | 13,167 | 4,185 | — | (753 | ) | (55 | ) | 16,544 | |||||||||||||||||
Valuation allowance on deferred tax assets | 762 | — | — | (12 | ) | — | 750 | ||||||||||||||||||
2012 | |||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 696 | $ | 1,996 | $ | — | $ | (1,740 | ) (1) | $ | (2 | ) | $ | 950 | |||||||||||
Acquisition exit cost reserves (2) | 3,865 | 528 | — | (2,549 | ) | (5 | ) | 1,839 | |||||||||||||||||
Inventory reserves | 514 | 419 | — | (502 | ) | (21 | ) | 410 | |||||||||||||||||
Sales returns and allowances | 11,682 | 3,524 | — | (2,036 | ) | (3 | ) | 13,167 | |||||||||||||||||
Valuation allowance on deferred tax assets | 840 | — | — | (78 | ) | — | 762 | ||||||||||||||||||
-1 | Accounts written off during the year, net of recoveries. | ||||||||||||||||||||||||
-2 | Amounts represent facilities closing cost of acquired distribution centers due to existing distribution centers being located in close proximity to the acquired distribution facilities. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||
Jan. 03, 2015 | |||||
Basis of Preparation | Basis of Preparation | ||||
The accompanying consolidated financial statements reflect the consolidated operations of the Company and have been prepared in accordance with GAAP as defined by the Financial Accounting Standards Board (“FASB”) within the FASB Accounting Standards Codification (“FASB ASC”). In the opinion of management, the accompanying consolidated financial statements contain all adjustments, which include normal recurring adjustments, necessary to present fairly the consolidated results for the periods presented. | |||||
Principles of Consolidation | Principles of Consolidation | ||||
The accompanying consolidated financial statements include the accounts of Holdings and all of its subsidiaries that are more than 50% owned and controlled. Partially-owned investments represent 20-50% ownership interests in investments where the Company demonstrates significant influence, but does not have a controlling financial interest. Partially-owned investments are accounted for under the equity method. The Company does not have any investments that are accounted for under the cost method. All significant intercompany accounts and transactions have been eliminated in consolidation. | |||||
Use of Estimates | Use of Estimates | ||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates are based on several factors including the facts and circumstances available at the time the estimates are made, historical experience, risk of loss, general economic conditions and trends, and the assessment of the probable future outcome. Estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the statement of comprehensive income (loss) in the period that they are determined. | |||||
Foreign currency translation | Foreign currency translation | ||||
All foreign currency denominated balance sheet accounts are translated at year end exchange rates and revenue and expense accounts are translated at weighted average rates of exchange prevailing during the year. Gains and losses resulting from the translation of foreign currency are recorded in the accumulated other comprehensive income (loss) component of stockholder’s equity. Transactional foreign currency gains and losses are included in other expense, net in the accompanying consolidated statements of comprehensive income (loss). | |||||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||||
The Company considers all deposits with an original maturity of three months or less and readily convertible cash to be cash equivalents in its consolidated financial statements. Outstanding checks are presented as a financing activity in the statement of cash flows because they are funded by drawing on the revolving credit facility as they are presented for payment. | |||||
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts | ||||
The allowance for doubtful accounts represents the best estimate of probable loss inherent within the Company’s accounts receivable balance. Estimates are based upon both the creditworthiness of specific customers and the overall probability of losses based upon an analysis of the overall aging of receivables as well as past collection trends and general economic conditions. | |||||
Inventories | Inventories | ||||
Inventories are stated at the lower of cost, determined on the first-in, first-out (“FIFO”) method, or fair market value and consist primarily of automotive tires, custom wheels, and related tire supply and tool products. The Company performs periodic assessments to determine the existence of obsolete, slow-moving and non-saleable inventories and records necessary provisions to reduce such inventories to net realizable value. A majority of the Company’s tire vendors allow for the return of tire products, subject to certain limitations, specified in supply arrangements with the vendors. | |||||
Property and Equipment | Property and Equipment | ||||
Property and equipment are stated at cost, less accumulated depreciation. For financial reporting purposes, assets placed in service are recorded at cost and depreciated using the straight-line method at annual rates sufficient to amortize the cost of the assets less estimated salvage values over the assets’ estimated useful lives. Leasehold improvements are amortized over the shorter of their economic useful life or the related lease term. The range of useful lives used to depreciate property and equipment is as follows: | |||||
Buildings | 25 to 31 years | ||||
Leasehold improvements | 2 to 10 years | ||||
Machinery and equipment | 2 to 10 years | ||||
Furniture and fixtures | 3 to 8 years | ||||
Internal use software | 1 to 5 years | ||||
Vehicles and other | 3 to 6 years | ||||
Major expenditures for replacements and significant improvements that increase asset values and extend useful lives are capitalized. Repairs and maintenance expenditures that do not extend the useful life of the asset are charged to expense as incurred. The carrying amounts of assets that are sold or retired and the related accumulated depreciation are removed from the accounts in the year of disposal, and any resulting gain or loss is reflected in the statement of comprehensive income (loss). | |||||
The Company capitalizes costs, including interest, incurred to develop or acquire internal-use software. These costs are capitalized subsequent to the preliminary project stage once specific criteria are met. Costs incurred in the preliminary project planning stage are expensed. Other costs, such as maintenance and training, are also expensed as incurred. Capitalized costs are amortized over their estimated useful lives using the straight-line method. | |||||
The Company assesses the recoverability of the carrying value of its property and equipment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability is measured by a comparison of the carrying amount of an asset to the future net undiscounted cash flows expected to be generated by the asset. If the undiscounted cash flows are less than the carrying amount of the asset, an impairment loss is recognized for the amount by which the carrying value of the asset exceeds the fair value of the assets. | |||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets | ||||
Goodwill and intangible assets with indefinite useful lives are tested and reviewed annually for impairment during the fourth quarter or whenever there is a significant change in events or circumstances that indicate that the fair value of the asset may be less than the carrying amount of the asset. | |||||
Recoverability of goodwill is measured at the reporting unit level and determined using a two step process. The first step compares the carrying amount of the reporting unit to its estimated fair value. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired and the second step of the impairment test is not necessary. To the extent that the carrying value of the reporting unit exceeds its estimated fair value, a second step is performed, wherein the reporting unit’s carrying value of goodwill is compared to the implied fair value of goodwill. To the extent that the carrying value exceeds the implied fair value, impairment exists and must be recognized. | |||||
Recoverability of other indefinite-lived intangible assets is measured by a comparison of the carrying amount of the intangible assets to the estimated fair value of the respective intangible assets. Any excess of the carrying value over the estimated fair value is recognized as an impairment loss equal to that excess. | |||||
Intangible assets such as customer-related intangible assets and noncompete agreements with finite useful lives are amortized on a straight-line or accelerated basis over their estimated economic lives. The weighted-average useful lives approximate the following: | |||||
Customer list | 16 to 19 years | ||||
Tradenames | 1 to 15 years | ||||
Noncompete agreements | 1 to 5 years | ||||
Favorable leases | 4 to 6 years | ||||
The Company assesses the recoverability of the carrying value of its intangible assets with finite useful lives whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability is measured by a comparison of the carrying amount of an asset to the future net undiscounted cash flows expected to be generated by the asset. If the undiscounted cash flows are less than the carrying amount of the asset, an impairment loss is recognized for the amount by which the carrying value of the asset exceeds the fair value of the assets. | |||||
Deferred Financing Costs | Deferred Financing Costs | ||||
Deferred financing costs are expenditures associated with obtaining financings that are capitalized in the consolidated balance sheets and amortized over the term of the loans to which such costs relate. Amounts capitalized are recorded within other assets in the consolidated balance sheets and amortized to interest expense in the consolidated statements of comprehensive income (loss). At January 3, 2015, the unamortized balance of deferred financing costs was $22.4 million, which includes $14.0 million incurred in connection with the issuance of the senior secured term loan, $1.2 million incurred in connection with the issuance of the Additional Subordinated Notes, and $0.7 million incurred to increase the borrowing capacity of the Company’s FILO Facility during fiscal 2014 (See Note 9 for additional information). At December 28, 2013, the unamortized balance of deferred financing costs was $16.3 million. During fiscal 2014, the Company wrote-off $3.3 million of unamortized deferred financing costs related to the redemption of the Senior Secured Notes (See Note 9 for additional information). Amortization for fiscal 2014, fiscal 2013 and fiscal 2012 was $6.5 million, $4.5 million and $7.5 million, respectively. Amortization for fiscal 2012 included $2.8 million related to the write-off of deferred financing costs associated with a lender that is not participating in the new syndication group. | |||||
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities | ||||
For derivative instruments, the Company applies FASB authoritative guidance which establishes accounting and reporting standards requiring that every derivative instrument (including certain derivative instruments embedded in other contracts) be recorded in the balance sheet as either an asset or liability measured at its fair value. This statement requires that changes in the derivative’s fair value be recognized currently in earnings unless specific hedge accounting criteria are met and that a company must formally document, designate and assess the effectiveness of transactions that receive hedge accounting treatment. | |||||
Self Insurance | Self Insurance | ||||
The Company is self-insured with respect to employee health liability claims and maintains a large deductible program on both workers’ compensation and auto insurance. The Company has stop-loss insurance coverage for individual claims in excess of $0.3 million for employee health insurance and deductibles of $0.3 million on the workers’ compensation and auto on a per claim basis. Aggregate stop-loss limits for workers’ compensation and auto are $11.2 million. There is no aggregate stop-loss limit on employee health insurance. A reserve for liabilities associated with losses is established for claims filed and claims incurred but not yet reported using actuarial methods followed in the insurance industry as well as the Company’s historical claims experience. | |||||
Revenue Recognition | Revenue Recognition | ||||
Revenue is recognized and earned when all of the following criteria are satisfied: (a) persuasive evidence of a sales arrangement exists; (b) price is fixed or determinable; (c) collectability is reasonably assured; and (d) delivery has occurred or service has been rendered. The Company recognizes revenue when the title and the risks and rewards of ownership have substantially transferred to the customer, which is upon delivery under free on board (“FOB”) destination terms. The Company permits customers from time to time to return certain products, but there is no contractual right of return. The Company continuously monitors and tracks such returns and records an estimate of such future returns, which is based on historical experience and recent trends. During fiscal 2014, the Company revised the previous net presentation of its sales return reserve to correctly present it gross. These adjustments, which affected net sales, cost of goods sold, accounts receivable and inventories, were not material to the consolidated financial statements. | |||||
In the normal course of business, the Company extends credit, on open accounts, to its customers after performing a credit analysis based on a number of financial and other criteria. The Company performs ongoing credit evaluations of its customers’ financial condition and does not normally require collateral; however, letters of credit and other security are occasionally required for certain new and existing customers. | |||||
Customer Rebates | Customer Rebates | ||||
The Company offers rebates to its customers under a number of different programs. These rebates are recorded in accordance with the accounting standards for consideration given by a vendor to a customer. The majority of these programs provide for the customer to receive rebates, generally in the form of a reduction in the related accounts receivable balance, when certain measures are achieved, generally related to the volume of product purchased from the Company. These rebates are recorded as a reduction of the related price of the product, which reduces the amount of revenue recorded. Throughout the year, the amount of rebates is estimated based on the expected level of purchases to be made by customers that participate in the rebate programs. These estimates are periodically revised to reflect rebates earned by customers based on actual purchases made. | |||||
Manufacturer Rebates | Manufacturer Rebates | ||||
The Company receives rebates from its vendors under a number of different programs. These rebates are recorded in accordance with the accounting standards for cash consideration received from a vendor. Many of the vendor programs provide for the Company to receive rebates when any of a number of measures are achieved, generally related to the volume of purchases. These rebates are accounted for as a reduction to the price of the product, which reduces the carrying value of our inventory, and our cost of goods sold when product is sold. Throughout the year, the amount recognized for annual rebates is based on purchases management considers probable for the full year. These estimates are continually revised to reflect rebates earned based on actual purchase levels. | |||||
Cooperative Advertising and Marketing Programs | Cooperative Advertising and Marketing Programs | ||||
The Company participates in cooperative advertising and marketing programs (“co-op”) with its vendors. Co-op funds are provided to the Company generally based on the volume of purchases made with vendors that offer such programs. A portion of the funds received must be used for specific advertising and marketing expenditures incurred by the Company or its customers. The co-op funds received by the Company from its vendors are accounted for in accordance with the accounting standards related to accounting for cash consideration received from a vendor, which requires that the Company record the funds received as a reduction of cost of sales or as an offset to specific costs incurred in selling the vendor’s products. The co-op funds that are provided to the Company’s customers are accounted for in accordance with authoritative guidance related to accounting for cash consideration given by a vendor to a customer, which requires that the Company record the funds paid as a reduction of revenue since no separate identifiable benefit is received by the Company. | |||||
Shipping and Handling Fees and Costs | Shipping and Handling Fees and Costs | ||||
In accordance with current accounting standards, the Company determined that shipping fees shall be reported on a gross basis. As a result, all amounts billed to a customer in a sale transaction related to shipping fees represent revenues earned for the goods provided and therefore recorded within net sales in the consolidated statement of comprehensive income (loss). Handling costs include expenses incurred to store, move, and prepare products for shipment. The Company classifies these costs as selling, general and administrative expenses within the consolidated statement of comprehensive income (loss), and includes a portion of internal costs such as salaries and overhead related to these activities. For fiscal 2014, 2013 and 2012, the Company incurred $275.0 million, $213.8 million and $171.1 million, respectively, related to these expenses. | |||||
Income Taxes | Income Taxes | ||||
The Company records a tax provision for the anticipated tax consequences of the reported results of operations. The provision is computed using the asset and liability method of accounting, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. In addition, the Company recognizes future tax benefits, such as net operating losses and tax credits, to the extent that realizing these benefits is considered in its judgment to be more likely than not. Deferred tax assets and liabilities are measured using currently enacted tax rates that apply to taxable income in effect for the years in which those tax items are expected to be realized or settled. The Company regularly reviews the recoverability of its deferred tax assets considering historic profitability, projected future taxable income, and timing of the reversals of existing temporary differences as well as the feasibility of our tax planning strategies. Where appropriate, a valuation allowance is recorded if available evidence suggests that it is more likely than not that some portion or all of a deferred tax asset will not be realized. Changes to valuation allowances are recognized in earnings in the period such determination is made. | |||||
The Company accounts for uncertain tax positions by recognizing the financial statement effects of a tax position only when, based upon the technical merits, it is more-likely-than-not that the position will be sustained upon examination. The tax impacts recognized in the financial statements from such positions are then measured based on the largest impact that has a greater than 50% likelihood of being realized upon settlement. The Company recognizes potential accrued interest and penalties associated with unrecognized tax positions as a component of the provision for income taxes. | |||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | ||||
In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” ASU 2013-11 clarifies guidance and eliminates diversity in practice on the presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. This new guidance is effective for annual reporting periods beginning on or after December 15, 2013 and subsequent interim periods. The Company adopted this guidance on December 29, 2013 (the first day of its 2014 fiscal year) and its adoption did not have a material impact on the Company’s consolidated financial statements. | |||||
In April 2014, the FASB issued ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” (“ASU 2014-08”). Under ASU 2014-08, only disposals representing a strategic shift in operations that have a major effect on the company’s operations and financial results should be presented as discontinued operations. Additionally, ASU 2014-08 requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The amendments in ASU 2014-08 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. However, ASU 2014-08 should not be applied to a component that is classified as held for sale before the effective date even if the component is disposed of after the effective date. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued. The Company does not expect the adoption of ASU 2014-08 to have a significant impact on its consolidated financial statements. | |||||
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which provides guidance for revenue recognition. ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets and supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition,” and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, “Revenue Recognition-Construction-Type and Production-Type Contracts.” The standard’s core principle is that a company should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 is effective for the Company beginning in fiscal year 2017 and, at that time the Company may adopt the new standard under the full retrospective method or the modified retrospective method. Early adoption is not permitted. The Company is currently evaluating the method and impact the adoption of ASU 2014-09 will have on the Company’s consolidated financial statements and disclosures. | |||||
In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements – Going Concern – Disclosures of Uncertainties about an entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”). ASU 2014-15 provides new guidance related to management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards and to provide related footnote disclosures. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. The Company does not expect the adoption of ASU 2014-15 to have a significant impact on its consolidated financial statements. | |||||
In November 2014, the FASB issued ASU 2014-17, “Business Combinations: Pushdown Accounting” (“ASU 2014-17”). ASU 2014-17 provides an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. The acquired entity may elect the option to apply pushdown accounting in the reporting period in which the change-in-control event occurs. If pushdown accounting is not applied in the reporting period in which the change-in-control event occurs, an acquired entity will have the option to elect to apply pushdown accounting in a subsequent reporting period as a change in accounting principle in accordance with ASC Topic 250, “Accounting Changes and Error Corrections”. If pushdown accounting is applied to an individual change-in-control event, that election is irrevocable. ASU 2014-17 also requires an acquired entity that elects the option to apply pushdown accounting in its separate financial statements to disclose information in the current reporting period that enables users of financial statements to evaluate the effect of pushdown accounting. The Company has adopted the amendments in ASU 2014-17, effective November 18, 2014, as the amendments in the update are effective upon issuance. The adoption did not have an impact on the Company’s consolidated financial statements and disclosures. | |||||
In January 2015, the FASB issued ASU 2015-01, “Income Statement – Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items” (“ASU 2015-01”). ASU 2015-01 eliminates the concept of an extraordinary item from GAAP. As a result, an entity will no longer be required to segregate extraordinary items from the results of ordinary operations, to separately present an extraordinary item on its income statement, net of tax, after income from continuing operations or to disclose income taxes and earnings-per-share data applicable to an extraordinary item. However, ASU 2015-01 will retain the presentation and disclosure guidance for items that are unusual in nature and occur infrequently. ASU 2015-01 is effective for fiscal years beginning after December 15, 2015. The Company does not expect the adoption of ASU 2015-01 to have a significant impact on its consolidated financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||
Jan. 03, 2015 | |||||
Range of Useful Lives used to Depreciate Property and Equipment | The range of useful lives used to depreciate property and equipment is as follows: | ||||
Buildings | 25 to 31 years | ||||
Leasehold improvements | 2 to 10 years | ||||
Machinery and equipment | 2 to 10 years | ||||
Furniture and fixtures | 3 to 8 years | ||||
Internal use software | 1 to 5 years | ||||
Vehicles and other | 3 to 6 years | ||||
Weighted-Average Useful Lives of Intangible Assets | The weighted-average useful lives approximate the following: | ||||
Customer list | 16 to 19 years | ||||
Tradenames | 1 to 15 years | ||||
Noncompete agreements | 1 to 5 years | ||||
Favorable leases | 4 to 6 years |
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||||||||||||||||||
Unaudited Pro Forma Supplementary Data Related to 2014 Acquisitions and RTD Acquisition | The following unaudited pro forma supplementary data gives effect to the 2014 Acquisitions as if these transactions had occurred on December 30, 2012 (the first day of the Company’s 2013 fiscal year), gives effect to the acquisition of RTD as if it had occurred on January 1, 2012 (the first day of the Company’s 2012 fiscal year) and gives effect to the acquisition of TriCan as if it had occurred on January 2, 2011 (the first day of the Company’s 2011 fiscal year). The pro forma supplementary data is provided for informational purposes only and should not be construed to be indicative of the Company’s results of operations had the 2014 Acquisitions, the RTD acquisition and the TriCan acquisition been consummated on the date assumed and does not project the Company’s results of operations for any future date. | ||||||||||||||||||||||||||||||||
Pro Forma | |||||||||||||||||||||||||||||||||
Fiscal Year | Fiscal Year | Fiscal Year | |||||||||||||||||||||||||||||||
Ended | Ended | Ended | |||||||||||||||||||||||||||||||
January 3, | December 28, | December 29, | |||||||||||||||||||||||||||||||
In thousands | 2015 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Net sales | $ | 5,240,010 | $ | 5,106,493 | $ | 3,765,737 | |||||||||||||||||||||||||||
Income (loss) from continuing operations | (67,628 | ) | (91,868 | ) | (12,170 | ) | |||||||||||||||||||||||||||
2014 Acquisitions | |||||||||||||||||||||||||||||||||
Allocation of Purchase Price | The allocation of the purchase price for each of the 2014 Acquisitions is as follows: | ||||||||||||||||||||||||||||||||
Terry’s | Trail | Kirks | RTD | RTD | |||||||||||||||||||||||||||||
In thousands | Tire | Hercules | Tire | Extreme | Tire | Edmonton | Calgary | Total | |||||||||||||||||||||||||
Cash | $ | 7,431 | $ | 12,187 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 19,618 | |||||||||||||||||
Accounts receivable | 39,772 | 61,193 | 4,899 | 884 | 5,175 | 1,056 | 2,618 | 115,597 | |||||||||||||||||||||||||
Inventory | 91,895 | 153,644 | 6,308 | 1,380 | 5,927 | 2,412 | 6,047 | 267,613 | |||||||||||||||||||||||||
Assets held for sale | 5,819 | — | — | — | — | — | — | 5,819 | |||||||||||||||||||||||||
Other current assets | 2,222 | 5,064 | — | — | — | — | — | 7,286 | |||||||||||||||||||||||||
Deferred income taxes | 4,947 | — | 124 | — | — | — | — | 5,071 | |||||||||||||||||||||||||
Property and equipment | 7,072 | 29,970 | 298 | 29 | — | 6 | 508 | 37,883 | |||||||||||||||||||||||||
Intangible assets | 186,161 | 155,704 | 10,922 | 3,985 | 43,971 | 21,549 | 9,707 | 431,999 | |||||||||||||||||||||||||
Other assets | 289 | — | — | — | — | — | — | 289 | |||||||||||||||||||||||||
Total assets acquired | 345,608 | 417,762 | 22,551 | 6,278 | 55,073 | 25,023 | 18,880 | 891,175 | |||||||||||||||||||||||||
Debt | 2,131 | 5,446 | — | — | — | — | — | 7,577 | |||||||||||||||||||||||||
Accounts payable | 80,771 | 95,616 | 6,017 | 449 | — | 1,432 | 1,907 | 186,192 | |||||||||||||||||||||||||
Accrued and other liabilities | 3,904 | 6,154 | 368 | 131 | 2,997 | 183 | 1,464 | 15,201 | |||||||||||||||||||||||||
Liabilities held for sale | 319 | — | — | — | — | — | — | 319 | |||||||||||||||||||||||||
Deferred income taxes | — | 68,516 | — | — | — | — | — | 68,516 | |||||||||||||||||||||||||
Other liabilities | — | 2,325 | 468 | — | 47 | — | — | 2,840 | |||||||||||||||||||||||||
Total liabilities assumed | 87,125 | 178,057 | 6,853 | 580 | 3,044 | 1,615 | 3,371 | 280,645 | |||||||||||||||||||||||||
Net assets acquired | 258,483 | 239,705 | 15,698 | 5,698 | 52,029 | 23,408 | 15,509 | 610,530 | |||||||||||||||||||||||||
Goodwill | 112,042 | 73,708 | 6,624 | 1,469 | 25,627 | 8,945 | 8,769 | 237,184 | |||||||||||||||||||||||||
Purchase price | $ | 370,525 | $ | 313,413 | $ | 22,322 | $ | 7,167 | $ | 77,656 | $ | 32,353 | $ | 24,278 | $ | 847,714 | |||||||||||||||||
Intangible Assets Based on Estimated Fair Value | The Company recorded intangible assets based on their estimated fair value which consisted of the following: | ||||||||||||||||||||||||||||||||
Terry’s | Trail | Kirks | RTD | RTD | |||||||||||||||||||||||||||||
In thousands | Tire | Hercules | Tire | Extreme | Tire | Edmonton | Calgary | Total | |||||||||||||||||||||||||
Customer list (1) | $ | 185,776 | $ | 147,216 | $ | 10,922 | $ | 3,985 | $ | 43,971 | $ | 21,549 | $ | 9,707 | $ | 423,126 | |||||||||||||||||
Tradenames (2) | — | 8,488 | — | — | — | — | — | 8,488 | |||||||||||||||||||||||||
Favorable leases (3) | 385 | — | — | — | — | — | — | 385 | |||||||||||||||||||||||||
Total | $ | 186,161 | $ | 155,704 | $ | 10,922 | $ | 3,985 | $ | 43,971 | $ | 21,549 | $ | 9,707 | $ | 431,999 | |||||||||||||||||
-1 | Estimated useful life is eighteen years. | ||||||||||||||||||||||||||||||||
-2 | Esimated useful life is fifteen years | ||||||||||||||||||||||||||||||||
-3 | Esimated useful life is five years. | ||||||||||||||||||||||||||||||||
Regional Tire Holdings Inc. | |||||||||||||||||||||||||||||||||
Allocation of Purchase Price | The allocation of the Adjusted Purchase Price is a follows: | ||||||||||||||||||||||||||||||||
In thousands | |||||||||||||||||||||||||||||||||
Cash | $ | 904 | |||||||||||||||||||||||||||||||
Accounts receivable | 10,093 | ||||||||||||||||||||||||||||||||
Inventory | 21,685 | ||||||||||||||||||||||||||||||||
Other current assets | 998 | ||||||||||||||||||||||||||||||||
Property and equipment | 1,050 | ||||||||||||||||||||||||||||||||
Intangible assets | 42,990 | ||||||||||||||||||||||||||||||||
Other assets | 52 | ||||||||||||||||||||||||||||||||
Total assets acquired | 77,772 | ||||||||||||||||||||||||||||||||
Debt | — | ||||||||||||||||||||||||||||||||
Accounts payable | 7,817 | ||||||||||||||||||||||||||||||||
Accrued and other liabilities | 12,740 | ||||||||||||||||||||||||||||||||
Deferred income taxes | 11,692 | ||||||||||||||||||||||||||||||||
Total liabilities assumed | 32,249 | ||||||||||||||||||||||||||||||||
Net assets acquired | 45,523 | ||||||||||||||||||||||||||||||||
Goodwill | 20,375 | ||||||||||||||||||||||||||||||||
Purchase price | $ | 65,898 | |||||||||||||||||||||||||||||||
Intangible Assets Based on Estimated Fair Value | The Company recorded intangible assets based on their estimated fair value which consisted of the following: | ||||||||||||||||||||||||||||||||
Estimated | Estimated | ||||||||||||||||||||||||||||||||
Useful | Fair | ||||||||||||||||||||||||||||||||
In thousands | Life | Value | |||||||||||||||||||||||||||||||
Customer list | 16 years | $ | 40,720 | ||||||||||||||||||||||||||||||
Tradenames | 5 years | 1,900 | |||||||||||||||||||||||||||||||
Favorable leases | 4 years | 370 | |||||||||||||||||||||||||||||||
Total | $ | 42,990 | |||||||||||||||||||||||||||||||
TriCan Tire Distributors | |||||||||||||||||||||||||||||||||
Allocation of Purchase Price | The allocation of the purchase price is as follows: | ||||||||||||||||||||||||||||||||
In thousands | |||||||||||||||||||||||||||||||||
Cash | $ | 1,344 | |||||||||||||||||||||||||||||||
Accounts receivable | 35,518 | ||||||||||||||||||||||||||||||||
Inventory | 45,445 | ||||||||||||||||||||||||||||||||
Other current assets | 495 | ||||||||||||||||||||||||||||||||
Property and equipment | 1,191 | ||||||||||||||||||||||||||||||||
Intangible assets | 49,940 | ||||||||||||||||||||||||||||||||
Other assets | 755 | ||||||||||||||||||||||||||||||||
Total assets acquired | 134,688 | ||||||||||||||||||||||||||||||||
Debt | — | ||||||||||||||||||||||||||||||||
Accounts payable | 37,576 | ||||||||||||||||||||||||||||||||
Accrued and other liabilities | 14,609 | ||||||||||||||||||||||||||||||||
Deferred income taxes | 13,003 | ||||||||||||||||||||||||||||||||
Other liabilities | 475 | ||||||||||||||||||||||||||||||||
Total liabilities assumed | 65,663 | ||||||||||||||||||||||||||||||||
Net assets acquired | 69,025 | ||||||||||||||||||||||||||||||||
Goodwill | 25,044 | ||||||||||||||||||||||||||||||||
Purchase price | $ | 94,069 | |||||||||||||||||||||||||||||||
Intangible Assets Based on Estimated Fair Value | The Company recorded intangible assets based on their estimated fair value and consisted of the followings: | ||||||||||||||||||||||||||||||||
Estimated | Estimated | ||||||||||||||||||||||||||||||||
Useful | Fair | ||||||||||||||||||||||||||||||||
In thousands | Life | Value | |||||||||||||||||||||||||||||||
Customer list | 16 years | $ | 44,621 | ||||||||||||||||||||||||||||||
Tradenames | 7 years | 4,958 | |||||||||||||||||||||||||||||||
Favorable leases | 6 years | 361 | |||||||||||||||||||||||||||||||
Total | $ | 49,940 | |||||||||||||||||||||||||||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||
Jan. 03, 2015 | |||||||||
Major Classes of Property and Equipment | The following table represents the major classes of property and equipment at January 3, 2015 and December 28, 2013: | ||||||||
January 3, | December 28, | ||||||||
In thousands | 2015 | 2013 | |||||||
Land | $ | 4,724 | $ | 1,665 | |||||
Buildings and leasehold improvements | 36,586 | 22,811 | |||||||
Machinery and equipment | 54,727 | 27,515 | |||||||
Furniture and fixtures | 57,416 | 46,459 | |||||||
Software | 164,039 | 117,607 | |||||||
Vehicles and other | 9,868 | 3,111 | |||||||
Total property and equipment | 327,360 | 219,168 | |||||||
Less - Accumulated depreciation | (106,894 | ) | (71,312 | ) | |||||
Property and equipment, net | $ | 220,466 | $ | 147,856 | |||||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | ||||||||
Jan. 03, 2015 | |||||||||
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill are as follows: | ||||||||
January 3, | December 28, | ||||||||
In thousands | 2015 | 2013 | |||||||
Beginning balance | $ | 504,333 | $ | 483,143 | |||||
Purchase accounting adjustments | 128 | (1,349 | ) | ||||||
Acquisitions | 238,871 | 25,408 | |||||||
Currency translation | (10,078 | ) | (2,869 | ) | |||||
Ending balance | $ | 733,254 | $ | 504,333 | |||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||
Gross Amount and Accumulated Amortization of Intangible Assets | The following table sets forth the gross amount and accumulated amortization of the Company’s intangible assets at January 3, 2015 and December 28, 2013: | ||||||||||||||||
January 3, 2015 | December 28, 2013 | ||||||||||||||||
Gross | Accumulated | Gross | Accumulated | ||||||||||||||
In thousands | Amount | Amortization | Amount | Amortization | |||||||||||||
Customer lists | $ | 1,101,389 | $ | 328,403 | $ | 677,062 | $ | 226,614 | |||||||||
Noncompete agreements | 21,143 | 10,459 | 12,007 | 6,400 | |||||||||||||
Favorable leases | 1,017 | 300 | 688 | 119 | |||||||||||||
Tradenames | 12,592 | 4,154 | 10,531 | 3,754 | |||||||||||||
Total finite-lived intangible assets | 1,136,141 | 343,316 | 700,288 | 236,887 | |||||||||||||
Tradenames (indefinite-lived) | 249,893 | — | 249,893 | — | |||||||||||||
Total intangible assets | $ | 1,386,034 | $ | 343,316 | $ | 950,181 | $ | 236,887 | |||||||||
Longterm_Debt_Tables
Long-term Debt (Tables) | 12 Months Ended | ||||||||
Jan. 03, 2015 | |||||||||
Long-Term Debt | The following table presents the Company’s long-term debt at January 3, 2015 and at December 28, 2013: | ||||||||
January 3, | December 28, | ||||||||
In thousands | 2015 | 2013 | |||||||
U.S. ABL Facility | $ | 581,167 | $ | 417,066 | |||||
Canadian ABL Facility | 473 | 36,424 | |||||||
U.S. FILO Facility | 80,000 | 51,863 | |||||||
Canadian FILO Facility | — | — | |||||||
Term Loan | 714,175 | — | |||||||
Senior Subordinated Notes | 421,736 | 200,000 | |||||||
Senior Secured Notes | — | 248,219 | |||||||
Capital lease obligations | 12,448 | 12,330 | |||||||
Other | 6,116 | 1,098 | |||||||
Total debt | 1,816,115 | 967,000 | |||||||
Less - Current maturities | (9,768 | ) | (564 | ) | |||||
Long-term debt | $ | 1,806,347 | $ | 966,436 | |||||
Aggregate Maturities of Long-Term Debt | Aggregate maturities of long-term debt at January 3, 2015 are as follows: | ||||||||
In thousands | |||||||||
2015 | $ | 9,768 | |||||||
2016 | 8,910 | ||||||||
2017 | 670,682 | ||||||||
2018 | 1,116,007 | ||||||||
2019 | 686 | ||||||||
Thereafter | 10,062 | ||||||||
Total | $ | 1,816,115 | |||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||
Fair Values of Derivative Instruments Included within Consolidated Balance Sheets | The following table presents the fair values of the Company’s derivative instruments included within the consolidated balance sheets as of January 3, 2015 and December 28, 2013: | ||||||||||||||||
Liability Derivatives | |||||||||||||||||
Balance Sheet | January 3, | December 28, | |||||||||||||||
In thousands | Location | 2015 | 2013 | ||||||||||||||
Derivatives not designated as hedges: | |||||||||||||||||
3Q 2011 swaps - $100 million notional | Accrued expenses | $ | 287 | $ | 792 | ||||||||||||
3Q 2012 swaps - $100 million notional | Accrued expenses | 220 | 280 | ||||||||||||||
3Q 2013 swaps - $200 million notional | Accrued expenses | 1,718 | 1,880 | ||||||||||||||
4Q 2014 swaps - $600 million notional | Accrued expenses | 5,635 | — | ||||||||||||||
Total | $ | 7,860 | $ | 2,952 | |||||||||||||
Pre-Tax Effect of Derivative Instruments on Consolidated Statement of Comprehensive Income (Loss) | The pre-tax effect of the Company’s derivative instruments on the consolidated statement of comprehensive income (loss) was as follows: | ||||||||||||||||
Gain (Loss) Recognized | |||||||||||||||||
Fiscal Year | Fiscal Year | Fiscal Year | |||||||||||||||
Location of | Ended | Ended | Ended | ||||||||||||||
Gain (Loss) | January 3, | December 28, | December 29, | ||||||||||||||
In thousands | Recognized | 2015 | 2013 | 2012 | |||||||||||||
Derivatives not designated as hedges: | |||||||||||||||||
1Q 2011 swap - $50 million notional | Interest Expense | $ | — | $ | 149 | $ | 154 | ||||||||||
1Q 2011 swap - $25 million notional | Interest Expense | — | — | 12 | |||||||||||||
3Q 2011 swaps - $100 million notional | Interest Expense | 505 | 522 | (764 | ) | ||||||||||||
3Q 2012 swaps - $100 million notional | Interest Expense | 60 | 470 | (750 | ) | ||||||||||||
3Q 2013 swaps - $200 million notional | Interest Expense | 162 | (1,880 | ) | — | ||||||||||||
4Q 2014 swaps - $600 million notional | Interest Expense | (5,635 | ) | — | — | ||||||||||||
Total | $ | (4,908 | ) | $ | (739 | ) | $ | (1,348 | ) | ||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||
Fair Value and Hierarchy Levels of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the fair value and hierarchy levels for the Company’s assets and liabilities, which are measured at fair value on a recurring basis as of January 3, 2015: | ||||||||||||||||
Fair Value Measurements | |||||||||||||||||
In thousands | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | |||||||||||||||||
Benefit trust assets | $ | 3,698 | $ | 3,698 | $ | — | $ | — | |||||||||
Total | $ | 3,698 | $ | 3,698 | $ | — | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Contingent consideration | $ | 9,704 | $ | — | $ | — | $ | 9,704 | |||||||||
Derivative instruments | 7,860 | — | 7,860 | — | |||||||||||||
Total | $ | 17,564 | $ | — | $ | 7,860 | $ | 9,704 | |||||||||
Changes in the Fair Value of the Contingent Consideration Liabilities | The following table summarizes the changes in the fair value of the Company’s contingent consideration liabilities measured using significant unobservable inputs (Level 3) for the fiscal year ended January 3, 2015: | ||||||||||||||||
Contingent | |||||||||||||||||
In thousands | Consideration | ||||||||||||||||
Balance at December 28, 2013 | $ | — | |||||||||||||||
Contingent consideration liabilities recorded for the Terry’s and Hercules acquisitions | 16,000 | ||||||||||||||||
Changes in the fair value of contingent consideration liabilities | (5,142 | ) | |||||||||||||||
Payment of contingent consideration liabilities | (1,154 | ) | |||||||||||||||
Balance at January 3, 2015 | $ | 9,704 | |||||||||||||||
Employee_Benefits_Tables
Employee Benefits (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||
Changes in Options Outstanding Under Two Thousand Ten Plan | Changes in options outstanding under the 2010 Plan are as follows: | ||||||||||||||||
Weighted | Weighted | ||||||||||||||||
Options | Average | Options | Average | ||||||||||||||
Outstanding | Exercise Price | Exercisable | Exercise Price | ||||||||||||||
December 31, 2011 | 44,598,400 | $ | 1 | 8,710,401 | $ | 1 | |||||||||||
Granted | 2,277,600 | 1.14 | n/a | n/a | |||||||||||||
Exercised | (38,000 | ) | 1 | n/a | n/a | ||||||||||||
Cancelled | (156,400 | ) | 1 | n/a | n/a | ||||||||||||
December 29, 2012 | 46,681,600 | $ | 1.01 | 17,594,936 | $ | 1 | |||||||||||
Granted | 3,500,002 | 1.2 | n/a | n/a | |||||||||||||
Exercised | — | — | n/a | n/a | |||||||||||||
Cancelled | (665,099 | ) | 1.01 | n/a | n/a | ||||||||||||
December 28, 2013 | 49,516,503 | $ | 1.02 | 27,794,844 | $ | 1.01 | |||||||||||
Granted | 4,528,833 | 1.5 | n/a | n/a | |||||||||||||
Exercised | — | — | n/a | n/a | |||||||||||||
Cancelled | — | — | n/a | n/a | |||||||||||||
January 3, 2015 | 54,045,336 | $ | 1.06 | 34,080,079 | $ | 1.03 | |||||||||||
Assumptions Used to Determine Weighted Average Fair Value of Stock Options | The weighted average fair value of the stock options granted during the fiscal years ended January 3, 2015, December 28, 2013 and December 29, 2012 was $0.68, $0.54 and $0.50, respectively, using the Black-Scholes option pricing model. The following weighted average assumptions were used: | ||||||||||||||||
Fiscal Year Ended | |||||||||||||||||
January 3, | December 28, | December 29, | |||||||||||||||
2015 | 2013 | 2012 | |||||||||||||||
Risk-free interest rate | 1.73 | % | 1.38 | % | 1.48 | % | |||||||||||
Dividend yield | — | — | — | ||||||||||||||
Expected life | 5.80 years | 6.0 years | 6.5 years | ||||||||||||||
Volatility | 46.49 | % | 45.39 | % | 42.81 | % | |||||||||||
Activity under Two Thousand Ten Restricted Stock Plan | The following table summarizes restricted stock activity under the 2010 Restricted Stock Plan: | ||||||||||||||||
Weighted | |||||||||||||||||
Number | Average | ||||||||||||||||
of Shares | Exercise Price | ||||||||||||||||
Outstanding and unvested at December 31, 2011 | 175,000 | $ | 1 | ||||||||||||||
Granted | 219,298 | 1.14 | |||||||||||||||
Vested | (125,000 | ) | 1 | ||||||||||||||
Cancelled | — | — | |||||||||||||||
Outstanding and unvested at December 29, 2012 | 269,298 | $ | 1.11 | ||||||||||||||
Granted | — | — | |||||||||||||||
Vested | (159,649 | ) | 1.1 | ||||||||||||||
Cancelled | (21,930 | ) | 1.14 | ||||||||||||||
Outstanding and unvested at December 28, 2013 | 87,719 | $ | 1.14 | ||||||||||||||
Granted | 133,333 | 1.5 | |||||||||||||||
Vested | (87,719 | ) | 1.14 | ||||||||||||||
Cancelled | — | — | |||||||||||||||
Outstanding and unvested at January 3, 2015 | 133,333 | $ | 1.5 | ||||||||||||||
Summary of Compensation Expense Recognized | The following table summarizes the compensation expense recognized: | ||||||||||||||||
Fiscal Year Ended | |||||||||||||||||
January 3, | December 28, | December 29, | |||||||||||||||
In thousands | 2015 | 2013 | 2012 | ||||||||||||||
Stock Options | $ | 4,292 | $ | 2,524 | $ | 4,118 | |||||||||||
Restricted Stock | 100 | 110 | 231 | ||||||||||||||
Total | $ | 4,392 | $ | 2,634 | $ | 4,349 | |||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Jan. 03, 2015 | |||||
Future Minimum Lease Commitments Net of Sublease Income | noncancellable operating leases, which expire between 2015 and 2027. Future minimum lease commitments, net of sublease income, at January 3, 2015 are as follows: | ||||
In thousands | |||||
2015 | $ | 100,966 | |||
2016 | 85,186 | ||||
2017 | 75,917 | ||||
2018 | 65,634 | ||||
2019 | 58,020 | ||||
Thereafter | 195,595 | ||||
Total | $ | 581,318 | |||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Income (Loss) from Operations before Income Taxes Taxed within following Jurisdictions | The Company’s income (loss) from operations before income taxes was taxed within the following jurisdictions: | ||||||||||||
Fiscal Year Ended | |||||||||||||
January 3, | December 28, | December 29, | |||||||||||
In thousands | 2015 | 2013 | 2012 | ||||||||||
United States | $ | (138,001 | ) | $ | (11,168 | ) | $ | (15,621 | ) | ||||
Foreign | (9,961 | ) | 866 | (4,403 | ) | ||||||||
Total | $ | (147,962 | ) | $ | (10,302 | ) | $ | (20,024 | ) | ||||
Income Tax Provision (Benefit) | The Company’s income tax provision (benefit) consisted of the following components: | ||||||||||||
Fiscal Year Ended | |||||||||||||
January 3, | December 28, | December 29, | |||||||||||
In thousands | 2015 | 2013 | 2012 | ||||||||||
Federal: | |||||||||||||
Current provision (benefit) | $ | (9,574 | ) | $ | 13,944 | $ | 5,420 | ||||||
Deferred provision (benefit) | (34,567 | ) | (18,141 | ) | (9,802 | ) | |||||||
Total | (44,141 | ) | (4,197 | ) | (4,382 | ) | |||||||
State: | |||||||||||||
Current provision (benefit) | 1,218 | 3,707 | 1,884 | ||||||||||
Deferred provision (benefit) | (8,118 | ) | (3,644 | ) | (2,037 | ) | |||||||
Total | (6,900 | ) | 63 | (153 | ) | ||||||||
Foreign: | |||||||||||||
Current provision (benefit) | 4,267 | 1,963 | 49 | ||||||||||
Deferred provision (benefit) | (6,902 | ) | (1,774 | ) | (1,192 | ) | |||||||
Total | (2,635 | ) | 189 | (1,143 | ) | ||||||||
Total provision (benefit) | $ | (53,676 | ) | $ | (3,945 | ) | $ | (5,678 | ) | ||||
Differences between Amount of Income Taxes Computed by Applying Applicable United States Statutory Federal Income Tax Rate and Pretax Income (Loss) | The provision (benefit) for income taxes differs from the amount of income taxes computed by applying the applicable U.S. statutory federal income tax rate of 35% to pretax income (loss), as a result of the following differences: | ||||||||||||
Fiscal Year Ended | |||||||||||||
January 3, | December 28, | December 29, | |||||||||||
In thousands | 2015 | 2013 | 2012 | ||||||||||
Income tax provision (benefit) computed at the federal statutory rate | $ | (51,787 | ) | $ | (3,608 | ) | $ | (7,008 | ) | ||||
State income taxes, net of federal income tax provision (benefit) | (4,485 | ) | 676 | (100 | ) | ||||||||
Benefit of lower foreign rate | 782 | (84 | ) | 395 | |||||||||
Permanent differences | 489 | 652 | 437 | ||||||||||
Debt issuance costs | (425 | ) | (244 | ) | (221 | ) | |||||||
Non-deductible transaction costs | 1,375 | 566 | 430 | ||||||||||
Tax settlements and other adjustments to uncertain tax positions (1) | — | (1,542 | ) | 138 | |||||||||
Increase (decrease) in valuation allowance | (192 | ) | (281 | ) | 132 | ||||||||
Other | 567 | (80 | ) | 119 | |||||||||
Income tax provision (benefit) | $ | (53,676 | ) | $ | (3,945 | ) | $ | (5,678 | ) | ||||
-1 | The amount for the year ended December 28, 2013 reflects the lapse of uncertain tax positions for three tax years due to the settlement of an IRS audit during that year. | ||||||||||||
Amounts Related to Deferred Income Taxes | As of January 3, 2015 and December 28, 2013, amounts related to deferred income taxes have been classified in the accompanying consolidated balance sheet as follows: | ||||||||||||
January 3, | December 28, | ||||||||||||
In thousands | 2015 | 2013 | |||||||||||
Deferred tax assets (liabilities): | |||||||||||||
Current | $ | 26,802 | $ | 15,719 | |||||||||
Noncurrent | (291,106 | ) | (270,576 | ) | |||||||||
Total | $ | (264,304 | ) | $ | (254,857 | ) | |||||||
Tax Effects of Significant Temporary Differences that Comprise Deferred Tax Assets and Liabilities | The tax effects of the significant temporary differences that comprise deferred tax assets and liabilities at January 3, 2015 and December 28, 2013 for the Company are as follows: | ||||||||||||
January 3, | December 28, | ||||||||||||
In thousands | 2015 | 2013 | |||||||||||
Deferred tax assets: | |||||||||||||
Accrued expenses and liabilities | $ | 19,473 | $ | 8,686 | |||||||||
Net operating loss carry-forwards | 1,691 | 1,233 | |||||||||||
Employee benefits | 11,455 | 9,622 | |||||||||||
Inventory cost capitalization | 11,805 | 6,359 | |||||||||||
Other assets | (1,384 | ) | (925 | ) | |||||||||
Other | 5,094 | 5,214 | |||||||||||
Gross deferred tax assets | 48,134 | 30,189 | |||||||||||
Less: Deferred tax valuation allowances | (533 | ) | (750 | ) | |||||||||
Net deferred tax assets | 47,601 | 29,439 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation and amortization of intangibles | (310,981 | ) | (283,033 | ) | |||||||||
Other comprehensive income | (244 | ) | — | ||||||||||
Other | (680 | ) | (1,263 | ) | |||||||||
Gross deferred tax liabilities | (311,905 | ) | (284,296 | ) | |||||||||
Net deferred tax assets (liabilities) | $ | (264,304 | ) | $ | (254,857 | ) | |||||||
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||
January 3, | December 28, | December 29, | |||||||||||
In thousands | 2015 | 2013 | 2012 | ||||||||||
Beginning balance | $ | 706 | $ | 1,953 | $ | 1,815 | |||||||
(Reductions) additions based on tax positions related to the current year, net | (298 | ) | (688 | ) | 138 | ||||||||
Reductions for lapse in statute of limitations | — | (559 | ) | — | |||||||||
Ending balance | $ | 408 | $ | 706 | $ | 1,953 | |||||||
Geographic_Area_Information_Ta
Geographic Area Information (Tables) | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Net Sales by Geographic Area | Net sales by country were determined based on the location of the selling subsidiary. | ||||||||||||
Fiscal Year Ended | |||||||||||||
January 3, | December 28, | December 29, | |||||||||||
In thousands | 2015 | 2013 | 2012 | ||||||||||
Net sales to external customers: | |||||||||||||
United States | $ | 4,387,245 | $ | 3,500,970 | 3,442,481 | ||||||||
Canada | 643,453 | 335,599 | 12,083 | ||||||||||
Total | $ | 5,030,698 | $ | 3,836,569 | $ | 3,454,564 | |||||||
Long-Lived Assets by Geographic Area | Long-lived assets consisted of property and equipment, net. | ||||||||||||
Fiscal Year Ended | |||||||||||||
January 3, | December 28, | ||||||||||||
In thousands | 2015 | 2013 | |||||||||||
Long-lived assets: | |||||||||||||
United States | $ | 201,459 | $ | 141,055 | |||||||||
Canada | 19,007 | 6,801 | |||||||||||
Total | $ | 220,466 | $ | 147,856 | |||||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||||
Jan. 03, 2015 | |||||
Components of Income (Loss) from Discontinued Operations, Net of Tax | of comprehensive income (loss) for the fiscal year ended January 3, 2015. The components of income (loss) from discontinued operations, net of tax for the fiscal year ended January 3, 2015 were as follows: | ||||
Fiscal Year | |||||
Ended | |||||
January 3, | |||||
In thousands | 2015 | ||||
Net sales | $ | 7,502 | |||
Income (loss) from operations before income taxes | $ | (165 | ) | ||
Loss on sale before income taxes | (346 | ) | |||
Income tax provision (benefit) | (198 | ) | |||
Income (loss) from discontinued operations, net of tax | $ | (313 | ) | ||
Description_of_Company_Additio
Description of Company - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Jan. 03, 2015 |
Segment | |
Customer | |
Store | |
Item | |
Nature Of Operations [Line Items] | |
Number of operating and reportable segment | 1 |
Number of distribution centers | 142 |
Number of redistribution centers in the United States | 3 |
Number of stock-keeping units | 50,000 |
Number of customers | 75,000 |
Tires | |
Nature Of Operations [Line Items] | |
Percentage of net sales from goods | 97.70% |
Net sale from goods | 4,916.40 |
Custom wheels and accessories | |
Nature Of Operations [Line Items] | |
Percentage of net sales from goods | 1.60% |
Net sale from goods | 82.8 |
Related tire supplies and tools | |
Nature Of Operations [Line Items] | |
Percentage of net sales from goods | 0.70% |
Net sale from goods | 34 |
Sales Revenue, Net | Credit Concentration Risk | Largest Customer | |
Nature Of Operations [Line Items] | |
Percentage of customers accounted of net sales | 2.90% |
Sales Revenue, Net | Credit Concentration Risk | Top Ten Customers | |
Nature Of Operations [Line Items] | |
Percentage of customers accounted of net sales | 10.30% |
American Tire Distributors Holdings, Inc. | |
Nature Of Operations [Line Items] | |
Percentage of ownership interest | 100.00% |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Significant Of Accounting Policies [Line Items] | |||
Percentage of ownership interest acquired | 50.00% | ||
Percentage of ownership | 5.00% | ||
Unamortized balance of deferred financing costs | $22.40 | $16.30 | |
Amortization of financing cost | 6.5 | 4.5 | 7.5 |
Write-off of deferred financing costs | 3.3 | 2.8 | |
Shipping and handling fees and costs | 275 | 213.8 | 171.1 |
Measurement of tax benefit, minimum likelihood of largest amount being realized upon ultimate settlement | 50.00% | ||
Senior Secured Term Loan | |||
Significant Of Accounting Policies [Line Items] | |||
Unamortized balance of deferred financing costs | 14 | ||
Senior Subordinated Notes | |||
Significant Of Accounting Policies [Line Items] | |||
Unamortized balance of deferred financing costs | 1.2 | ||
Employee health insurance | |||
Significant Of Accounting Policies [Line Items] | |||
Stop-loss insurance coverage, threshold | 0.3 | ||
Workers' compensation | |||
Significant Of Accounting Policies [Line Items] | |||
Stop-loss insurance coverage, threshold | 0.3 | ||
Workers' compensation and auto | |||
Significant Of Accounting Policies [Line Items] | |||
Stop-loss insurance coverage, threshold | 11.2 | ||
Increase the borrowing capacity and extend the maturity date of the Company's revolving credit facility | |||
Significant Of Accounting Policies [Line Items] | |||
Unamortized balance of deferred financing costs | $0.70 | ||
Partially-owned investments | Minimum | |||
Significant Of Accounting Policies [Line Items] | |||
Percentage of ownership | 20.00% | ||
Partially-owned investments | Maximum | |||
Significant Of Accounting Policies [Line Items] | |||
Percentage of ownership | 50.00% |
Range_of_Useful_Lives_Used_to_
Range of Useful Lives Used to Depreciate Property and Equipment (Detail) | 12 Months Ended |
Jan. 03, 2015 | |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful lives | 25 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful lives | 31 years |
Leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful lives | 2 years |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful lives | 10 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful lives | 2 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful lives | 10 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful lives | 3 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful lives | 8 years |
Internal use software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful lives | 1 year |
Internal use software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful lives | 5 years |
Vehicles and other | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful lives | 3 years |
Vehicles and other | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful lives | 6 years |
WeightedAverage_Useful_Lives_o
Weighted-Average Useful Lives of Intangible Assets (Detail) | 12 Months Ended |
Jan. 03, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, weighted average useful life | 18 years |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, weighted average useful life | 1 year |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, weighted average useful life | 19 years |
Customer list | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, weighted average useful life | 18 years |
Customer list | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, weighted average useful life | 16 years |
Customer list | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, weighted average useful life | 19 years |
Tradenames | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, weighted average useful life | 15 years |
Tradenames | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, weighted average useful life | 1 year |
Tradenames | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, weighted average useful life | 15 years |
Noncompete agreement | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, weighted average useful life | 1 year |
Noncompete agreement | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, weighted average useful life | 5 years |
Favorable leases | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, weighted average useful life | 5 years |
Favorable leases | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, weighted average useful life | 4 years |
Favorable leases | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, weighted average useful life | 6 years |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 0 Months Ended | ||||||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | Jun. 27, 2014 | Oct. 04, 2014 | Mar. 28, 2014 | Jul. 05, 2014 | Jan. 31, 2014 | Jan. 17, 2014 | Dec. 13, 2013 | Apr. 05, 2014 | Aug. 30, 2013 | Apr. 30, 2013 | Mar. 22, 2013 | Sep. 28, 2013 | Nov. 30, 2012 | Jun. 29, 2013 | 24-May-12 | |
Customer | Customer | Customer | Customer | Customer | ||||||||||||||
Store | Store | Store | Store | |||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Number of distribution centers | 142 | |||||||||||||||||
Percentage of ownership | 5.00% | |||||||||||||||||
Working capital adjustment change in goodwill, value | $128,000 | ($1,349,000) | ||||||||||||||||
Number of customers | 75,000 | |||||||||||||||||
Acquired finite-lived intangible assets, useful life | 18 years | |||||||||||||||||
Discounted cashflow rate | 95.00% | |||||||||||||||||
Fair value of assets held for sale, current assets | 799,000 | 910,000 | ||||||||||||||||
Inventory step-up amortization expense | 35,900,000 | 5,400,000 | 4,100,000 | |||||||||||||||
Non-cash amortization expense on acquired intangible assets | 114,300,000 | 76,200,000 | 66,200,000 | |||||||||||||||
Goodwill | 733,254,000 | 504,333,000 | 483,143,000 | |||||||||||||||
Percentage of ownership interest acquired | 50.00% | |||||||||||||||||
Business acquisition adjustment to historical amortization expense as a result of acquired intangible assets | 12,000,000 | 42,100,000 | 12,600,000 | |||||||||||||||
Business acquisition adjustment to historical interest expense as a result of the issuance of the additional Senior Subordinated Notes and the new senior secured term loan facility | 5,600,000 | 42,800,000 | ||||||||||||||||
Business acquisition transaction expenses | 53,616,000 | 6,719,000 | 5,246,000 | |||||||||||||||
Cost of Goods Sold | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Inventory step-up amortization expense | 34,300,000 | 2,700,000 | ||||||||||||||||
2014 Acquisitions | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Purchase price | 847,714,000 | |||||||||||||||||
Net sales | 805,800,000 | |||||||||||||||||
Net income (loss) | 25,900,000 | |||||||||||||||||
Inventory step-up amortization expense | 34,300,000 | |||||||||||||||||
Non-cash amortization expense on acquired intangible assets | 33,400,000 | |||||||||||||||||
Goodwill | 237,184,000 | |||||||||||||||||
Customer list | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Acquired finite-lived intangible assets, useful life | 18 years | |||||||||||||||||
Trail Tire Distributors Ltd | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Business acquisition, cash consideration | 20,800,000 | |||||||||||||||||
Business acquisition increase (decrease) in purchase price | 1,500,000 | |||||||||||||||||
Purchase price | 22,300,000 | |||||||||||||||||
Change in goodwill, value | 1,500,000 | |||||||||||||||||
Goodwill | 6,600,000 | |||||||||||||||||
Trail Tire Distributors Ltd | 2014 Acquisitions | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Purchase price | 22,322,000 | |||||||||||||||||
Goodwill | 6,624,000 | |||||||||||||||||
Trail Tire Distributors Ltd | Customer list | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Acquired finite-lived intangible assets, useful life | 18 years | |||||||||||||||||
Finite lived intangible assets | 10,900,000 | |||||||||||||||||
Extreme Wheel Distributors Ltd | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Business acquisition, cash consideration | 6,500,000 | |||||||||||||||||
Business acquisition increase (decrease) in purchase price | 700,000 | |||||||||||||||||
Purchase price | 7,200,000 | |||||||||||||||||
Change in goodwill, value | 700,000 | |||||||||||||||||
Goodwill | 1,500,000 | |||||||||||||||||
Extreme Wheel Distributors Ltd | 2014 Acquisitions | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Purchase price | 7,167,000 | |||||||||||||||||
Goodwill | 1,469,000 | |||||||||||||||||
Extreme Wheel Distributors Ltd | Customer list | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Acquired finite-lived intangible assets, useful life | 18 years | |||||||||||||||||
Finite lived intangible assets | 4,000,000 | |||||||||||||||||
Kirks Tire Ltd | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Business acquisition, cash consideration | 73,000,000 | |||||||||||||||||
Business acquisition increase (decrease) in purchase price | 4,700,000 | |||||||||||||||||
Purchase price | 77,700,000 | |||||||||||||||||
Change in goodwill, value | 4,700,000 | |||||||||||||||||
Goodwill | 25,600,000 | |||||||||||||||||
Kirks Tire Ltd | 2014 Acquisitions | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Purchase price | 77,656,000 | |||||||||||||||||
Goodwill | 25,627,000 | |||||||||||||||||
Kirks Tire Ltd | Customer list | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Acquired finite-lived intangible assets, useful life | 18 years | |||||||||||||||||
Finite lived intangible assets | 44,000,000 | |||||||||||||||||
Regional Tire Distributors (Edmonton) Inc | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Business acquisition, cash consideration | 31,900,000 | |||||||||||||||||
Business acquisition increase (decrease) in purchase price | 500,000 | |||||||||||||||||
Purchase price | 32,400,000 | |||||||||||||||||
Change in goodwill, value | 500,000 | |||||||||||||||||
Goodwill | 8,900,000 | |||||||||||||||||
Regional Tire Distributors (Edmonton) Inc | 2014 Acquisitions | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Purchase price | 32,353,000 | |||||||||||||||||
Goodwill | 8,945,000 | |||||||||||||||||
Regional Tire Distributors (Edmonton) Inc | Customer list | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Acquired finite-lived intangible assets, useful life | 18 years | |||||||||||||||||
Finite lived intangible assets | 21,500,000 | |||||||||||||||||
Regional Tire Distributors (Calgary) Inc | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Business acquisition, cash consideration | 20,700,000 | |||||||||||||||||
Business acquisition increase (decrease) in purchase price | 3,600,000 | |||||||||||||||||
Purchase price | 24,300,000 | |||||||||||||||||
Change in goodwill, value | 3,600,000 | |||||||||||||||||
Goodwill | 8,800,000 | |||||||||||||||||
Regional Tire Distributors (Calgary) Inc | 2014 Acquisitions | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Purchase price | 24,278,000 | |||||||||||||||||
Goodwill | 8,769,000 | |||||||||||||||||
Regional Tire Distributors (Calgary) Inc | Customer list | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Acquired finite-lived intangible assets, useful life | 18 years | |||||||||||||||||
Finite lived intangible assets | 9,700,000 | |||||||||||||||||
Terry's Tire Town Holdings, Inc. | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Business acquisition, cash consideration | 358,000,000 | |||||||||||||||||
Business acquisition increase (decrease) in purchase price | -5,400,000 | |||||||||||||||||
Purchase price | 370,500,000 | |||||||||||||||||
Change in goodwill, value | -5,400,000 | |||||||||||||||||
Number of distribution centers | 10 | |||||||||||||||||
Business acquisition, contingent consideration | 12,500,000 | |||||||||||||||||
Business acquisition, borrowings under U.S. ABL Facility | 72,500,000 | |||||||||||||||||
Working capital adjustment change in goodwill, value | -5,400,000 | |||||||||||||||||
Fair value of assets held for sale | 5,800,000 | |||||||||||||||||
Fair value of assets held for sale, current assets | 4,500,000 | |||||||||||||||||
Fair value of assets held for sale, net property and equipment | 800,000 | |||||||||||||||||
Fair value of the liabilities held for sale | 300,000 | |||||||||||||||||
Assets held-for-sale, goodwill | 500,000 | |||||||||||||||||
Goodwill | 112,000,000 | |||||||||||||||||
Terry's Tire Town Holdings, Inc. | 2014 Acquisitions | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Purchase price | 370,525,000 | |||||||||||||||||
Goodwill | 112,042,000 | |||||||||||||||||
Terry's Tire Town Holdings, Inc. | Customer list | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Acquired finite-lived intangible assets, useful life | 18 years | |||||||||||||||||
Finite lived intangible assets | 185,800,000 | |||||||||||||||||
Hercules | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Business acquisition, cash consideration | 309,900,000 | |||||||||||||||||
Business acquisition increase (decrease) in purchase price | -400,000 | |||||||||||||||||
Purchase price | 313,400,000 | 313,800,000 | ||||||||||||||||
Business acquisition, contingent consideration | 3,500,000 | |||||||||||||||||
Percentage of ownership | 100.00% | |||||||||||||||||
Working capital adjustment change in goodwill, value | -400,000 | |||||||||||||||||
Additional contingent consideration | 6,500,000 | |||||||||||||||||
Equity contribution value | 50,000,000 | |||||||||||||||||
Goodwill | 73,700,000 | |||||||||||||||||
Hercules | United States | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Number of distribution centers | 15 | |||||||||||||||||
Hercules | Canada | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Number of distribution centers | 6 | |||||||||||||||||
Hercules | Northern China | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Number of warehouse acquired | 1 | |||||||||||||||||
Hercules | North America | Passenger and Light Truck | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Market share percentage | 2.00% | |||||||||||||||||
Hercules | North America | Highway Truck Tires | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Market share percentage | 3.00% | |||||||||||||||||
Hercules | 2014 Acquisitions | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Purchase price | 313,413,000 | |||||||||||||||||
Goodwill | 73,708,000 | |||||||||||||||||
Hercules | Customer list | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Acquired finite-lived intangible assets, useful life | 18 years | |||||||||||||||||
Finite lived intangible assets | 147,200,000 | |||||||||||||||||
Wholesale Distribution Business | Kipling Tire Co, Ltd | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Number of customers | 400 | |||||||||||||||||
Wholesale Tire Distributors Inc. | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Number of distribution centers | 2 | |||||||||||||||||
Working capital adjustment change in goodwill, value | 100,000 | |||||||||||||||||
Number of customers | 2,300 | |||||||||||||||||
Goodwill | 1,200,000 | 1,200,000 | ||||||||||||||||
Wholesale Tire Distributors Inc. | Customer list | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Acquired finite-lived intangible assets, useful life | 16 years | |||||||||||||||||
Finite lived intangible assets | 4,400,000 | |||||||||||||||||
Tire Distributors, Inc. | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Number of distribution centers | 1 | |||||||||||||||||
Number of customers | 1,700 | |||||||||||||||||
Goodwill | 2,400,000 | |||||||||||||||||
Percentage of ownership interest acquired | 100.00% | |||||||||||||||||
Tire Distributors, Inc. | Customer list | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Acquired finite-lived intangible assets, useful life | 16 years | |||||||||||||||||
Finite lived intangible assets | 3,400,000 | |||||||||||||||||
Regional Tire Holdings Inc. | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Business acquisition increase (decrease) in purchase price | 1,000,000 | |||||||||||||||||
Purchase price | 62,500,000 | 65,900,000 | ||||||||||||||||
Change in goodwill, value | 1,000,000 | |||||||||||||||||
Goodwill | 20,400,000 | |||||||||||||||||
Business acquisition, held in escrow | 6,300,000 | |||||||||||||||||
Regional Tire Holdings Inc. | Purchase Price At Acquisition | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Purchase price | 64,900,000 | |||||||||||||||||
Regional Tire Holdings Inc. | Customer list | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Acquired finite-lived intangible assets, useful life | 16 years | |||||||||||||||||
Finite lived intangible assets | 40,700,000 | |||||||||||||||||
TriCan Tire Distributors | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Purchase price | 94,069,000 | 94,100,000 | ||||||||||||||||
Change in goodwill, value | -3,400,000 | |||||||||||||||||
Business acquisition, contingent consideration | 15,000,000 | |||||||||||||||||
Goodwill | 25,044,000 | |||||||||||||||||
Purchase price reduction amount | 3,400,000 | |||||||||||||||||
TriCan Tire Distributors | Purchase Price At Acquisition | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Purchase price | 97,500,000 | |||||||||||||||||
TriCan Tire Distributors | Customer list | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Acquired finite-lived intangible assets, useful life | 16 years | |||||||||||||||||
Finite lived intangible assets | 44,600,000 | |||||||||||||||||
Hercules and Terry's Tire | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Business acquisition transaction expenses | 67,100,000 | 2,500,000 | ||||||||||||||||
Consolidated Tire & Oil | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Number of distribution centers | 3 | |||||||||||||||||
Number of customers | 500 | |||||||||||||||||
Goodwill | 10,100,000 | |||||||||||||||||
Percentage of ownership interest acquired | 100.00% | |||||||||||||||||
Consolidated Tire & Oil | Customer list | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Finite lived intangible assets | $15,900,000 |
Allocation_of_Purchase_Price_D
Allocation of Purchase Price (Detail) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | ||||
In Thousands, unless otherwise specified | Jul. 05, 2014 | Jan. 31, 2014 | Oct. 04, 2014 | Mar. 22, 2013 | Sep. 28, 2013 | Nov. 30, 2012 | Jun. 29, 2013 | Jan. 03, 2015 | Mar. 28, 2014 | Jun. 27, 2014 | Apr. 30, 2013 | Dec. 28, 2013 | Dec. 29, 2012 |
Business Acquisition [Line Items] | |||||||||||||
Intangible assets | $431,999 | ||||||||||||
Goodwill | 733,254 | 504,333 | 483,143 | ||||||||||
Terry's Tire Town Holdings, Inc. | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible assets | 186,161 | ||||||||||||
Goodwill | 112,000 | ||||||||||||
Purchase price | 370,500 | ||||||||||||
Hercules | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible assets | 155,704 | ||||||||||||
Goodwill | 73,700 | ||||||||||||
Purchase price | 313,400 | 313,800 | |||||||||||
Trail Tire Distributors Ltd | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible assets | 10,922 | ||||||||||||
Goodwill | 6,600 | ||||||||||||
Purchase price | 22,300 | ||||||||||||
Extreme Wheel Distributors Ltd | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible assets | 3,985 | ||||||||||||
Goodwill | 1,500 | ||||||||||||
Purchase price | 7,200 | ||||||||||||
Kirks Tire Ltd | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible assets | 43,971 | ||||||||||||
Goodwill | 25,600 | ||||||||||||
Purchase price | 77,700 | ||||||||||||
Regional Tire Distributors (Edmonton) Inc | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible assets | 21,549 | ||||||||||||
Goodwill | 8,900 | ||||||||||||
Purchase price | 32,400 | ||||||||||||
Regional Tire Distributors (Calgary) Inc | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible assets | 9,707 | ||||||||||||
Goodwill | 8,800 | ||||||||||||
Purchase price | 24,300 | ||||||||||||
Regional Tire Holdings Inc. | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible assets | 42,990 | ||||||||||||
Goodwill | 20,400 | ||||||||||||
Purchase price | 62,500 | 65,900 | |||||||||||
TriCan Tire Distributors | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash | 1,344 | ||||||||||||
Accounts receivable | 35,518 | ||||||||||||
Inventory | 45,445 | ||||||||||||
Other current assets | 495 | ||||||||||||
Property and equipment | 1,191 | ||||||||||||
Intangible assets | 49,940 | ||||||||||||
Other assets | 755 | ||||||||||||
Total assets acquired | 134,688 | ||||||||||||
Accounts payable | 37,576 | ||||||||||||
Accrued and other liabilities | 14,609 | ||||||||||||
Deferred income taxes | 13,003 | ||||||||||||
Other liabilities | 475 | ||||||||||||
Total liabilities assumed | 65,663 | ||||||||||||
Net assets acquired | 69,025 | ||||||||||||
Goodwill | 25,044 | ||||||||||||
Purchase price | 94,069 | 94,100 | |||||||||||
2014 Acquisitions | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash | 19,618 | ||||||||||||
Accounts receivable | 115,597 | ||||||||||||
Inventory | 267,613 | ||||||||||||
Assets held for sale | 5,819 | ||||||||||||
Other current assets | 7,286 | ||||||||||||
Deferred income taxes | 5,071 | ||||||||||||
Property and equipment | 37,883 | ||||||||||||
Intangible assets | 431,999 | ||||||||||||
Other assets | 289 | ||||||||||||
Total assets acquired | 891,175 | ||||||||||||
Debt | 7,577 | ||||||||||||
Accounts payable | 186,192 | ||||||||||||
Accrued and other liabilities | 15,201 | ||||||||||||
Liabilities held for sale | 319 | ||||||||||||
Deferred income taxes | 68,516 | ||||||||||||
Other liabilities | 2,840 | ||||||||||||
Total liabilities assumed | 280,645 | ||||||||||||
Net assets acquired | 610,530 | ||||||||||||
Goodwill | 237,184 | ||||||||||||
Purchase price | 847,714 | ||||||||||||
2014 Acquisitions | Terry's Tire Town Holdings, Inc. | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash | 7,431 | ||||||||||||
Accounts receivable | 39,772 | ||||||||||||
Inventory | 91,895 | ||||||||||||
Assets held for sale | 5,819 | ||||||||||||
Other current assets | 2,222 | ||||||||||||
Deferred income taxes | 4,947 | ||||||||||||
Property and equipment | 7,072 | ||||||||||||
Intangible assets | 186,161 | ||||||||||||
Other assets | 289 | ||||||||||||
Total assets acquired | 345,608 | ||||||||||||
Debt | 2,131 | ||||||||||||
Accounts payable | 80,771 | ||||||||||||
Accrued and other liabilities | 3,904 | ||||||||||||
Liabilities held for sale | 319 | ||||||||||||
Total liabilities assumed | 87,125 | ||||||||||||
Net assets acquired | 258,483 | ||||||||||||
Goodwill | 112,042 | ||||||||||||
Purchase price | 370,525 | ||||||||||||
2014 Acquisitions | Hercules | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash | 12,187 | ||||||||||||
Accounts receivable | 61,193 | ||||||||||||
Inventory | 153,644 | ||||||||||||
Other current assets | 5,064 | ||||||||||||
Property and equipment | 29,970 | ||||||||||||
Intangible assets | 155,704 | ||||||||||||
Total assets acquired | 417,762 | ||||||||||||
Debt | 5,446 | ||||||||||||
Accounts payable | 95,616 | ||||||||||||
Accrued and other liabilities | 6,154 | ||||||||||||
Deferred income taxes | 68,516 | ||||||||||||
Other liabilities | 2,325 | ||||||||||||
Total liabilities assumed | 178,057 | ||||||||||||
Net assets acquired | 239,705 | ||||||||||||
Goodwill | 73,708 | ||||||||||||
Purchase price | 313,413 | ||||||||||||
2014 Acquisitions | Trail Tire Distributors Ltd | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Accounts receivable | 4,899 | ||||||||||||
Inventory | 6,308 | ||||||||||||
Deferred income taxes | 124 | ||||||||||||
Property and equipment | 298 | ||||||||||||
Intangible assets | 10,922 | ||||||||||||
Total assets acquired | 22,551 | ||||||||||||
Accounts payable | 6,017 | ||||||||||||
Accrued and other liabilities | 368 | ||||||||||||
Other liabilities | 468 | ||||||||||||
Total liabilities assumed | 6,853 | ||||||||||||
Net assets acquired | 15,698 | ||||||||||||
Goodwill | 6,624 | ||||||||||||
Purchase price | 22,322 | ||||||||||||
2014 Acquisitions | Extreme Wheel Distributors Ltd | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Accounts receivable | 884 | ||||||||||||
Inventory | 1,380 | ||||||||||||
Property and equipment | 29 | ||||||||||||
Intangible assets | 3,985 | ||||||||||||
Total assets acquired | 6,278 | ||||||||||||
Accounts payable | 449 | ||||||||||||
Accrued and other liabilities | 131 | ||||||||||||
Total liabilities assumed | 580 | ||||||||||||
Net assets acquired | 5,698 | ||||||||||||
Goodwill | 1,469 | ||||||||||||
Purchase price | 7,167 | ||||||||||||
2014 Acquisitions | Kirks Tire Ltd | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Accounts receivable | 5,175 | ||||||||||||
Inventory | 5,927 | ||||||||||||
Intangible assets | 43,971 | ||||||||||||
Total assets acquired | 55,073 | ||||||||||||
Accrued and other liabilities | 2,997 | ||||||||||||
Other liabilities | 47 | ||||||||||||
Total liabilities assumed | 3,044 | ||||||||||||
Net assets acquired | 52,029 | ||||||||||||
Goodwill | 25,627 | ||||||||||||
Purchase price | 77,656 | ||||||||||||
2014 Acquisitions | Regional Tire Distributors (Edmonton) Inc | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Accounts receivable | 1,056 | ||||||||||||
Inventory | 2,412 | ||||||||||||
Property and equipment | 6 | ||||||||||||
Intangible assets | 21,549 | ||||||||||||
Total assets acquired | 25,023 | ||||||||||||
Accounts payable | 1,432 | ||||||||||||
Accrued and other liabilities | 183 | ||||||||||||
Total liabilities assumed | 1,615 | ||||||||||||
Net assets acquired | 23,408 | ||||||||||||
Goodwill | 8,945 | ||||||||||||
Purchase price | 32,353 | ||||||||||||
2014 Acquisitions | Regional Tire Distributors (Calgary) Inc | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Accounts receivable | 2,618 | ||||||||||||
Inventory | 6,047 | ||||||||||||
Property and equipment | 508 | ||||||||||||
Intangible assets | 9,707 | ||||||||||||
Total assets acquired | 18,880 | ||||||||||||
Accounts payable | 1,907 | ||||||||||||
Accrued and other liabilities | 1,464 | ||||||||||||
Total liabilities assumed | 3,371 | ||||||||||||
Net assets acquired | 15,509 | ||||||||||||
Goodwill | 8,769 | ||||||||||||
Purchase price | 24,278 | ||||||||||||
2013 Acquisitions | Regional Tire Holdings Inc. | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash | 904 | ||||||||||||
Accounts receivable | 10,093 | ||||||||||||
Inventory | 21,685 | ||||||||||||
Other current assets | 998 | ||||||||||||
Property and equipment | 1,050 | ||||||||||||
Intangible assets | 42,990 | ||||||||||||
Other assets | 52 | ||||||||||||
Total assets acquired | 77,772 | ||||||||||||
Accounts payable | 7,817 | ||||||||||||
Accrued and other liabilities | 12,740 | ||||||||||||
Deferred income taxes | 11,692 | ||||||||||||
Total liabilities assumed | 32,249 | ||||||||||||
Net assets acquired | 45,523 | ||||||||||||
Goodwill | 20,375 | ||||||||||||
Purchase price | $65,898 |
Intangible_Assets_Based_on_Est
Intangible Assets Based on Estimated Fair Value (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | |||||||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Mar. 28, 2014 | Jan. 31, 2014 | Jun. 27, 2014 | Apr. 30, 2013 | Nov. 30, 2012 | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible Assets, Estimated Fair Value | $431,999 | |||||||||
Acquired finite-lived intangible assets, useful life | 18 years | |||||||||
Customer list | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible Assets, Estimated Fair Value | 423,126 | [1] | ||||||||
Acquired finite-lived intangible assets, useful life | 18 years | |||||||||
Favorable leases | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible Assets, Estimated Fair Value | 385 | [2] | ||||||||
Acquired finite-lived intangible assets, useful life | 5 years | |||||||||
Tradenames | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible Assets, Estimated Fair Value | 8,488 | [3] | ||||||||
Acquired finite-lived intangible assets, useful life | 15 years | |||||||||
Terry's Tire Town Holdings, Inc. | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible Assets, Estimated Fair Value | 186,161 | |||||||||
Terry's Tire Town Holdings, Inc. | Customer list | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible Assets, Estimated Fair Value | 185,776 | [1] | ||||||||
Acquired finite-lived intangible assets, useful life | 18 years | |||||||||
Terry's Tire Town Holdings, Inc. | Favorable leases | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible Assets, Estimated Fair Value | 385 | [2] | ||||||||
Acquired finite-lived intangible assets, useful life | 5 years | |||||||||
Terry's Tire Town Holdings, Inc. | Tradenames | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Acquired finite-lived intangible assets, useful life | 15 years | |||||||||
Hercules | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible Assets, Estimated Fair Value | 155,704 | |||||||||
Hercules | Customer list | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible Assets, Estimated Fair Value | 147,216 | [1] | ||||||||
Acquired finite-lived intangible assets, useful life | 18 years | |||||||||
Hercules | Favorable leases | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Acquired finite-lived intangible assets, useful life | 5 years | |||||||||
Hercules | Tradenames | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible Assets, Estimated Fair Value | 8,488 | [3] | ||||||||
Acquired finite-lived intangible assets, useful life | 15 years | |||||||||
Trail Tire Distributors Ltd | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible Assets, Estimated Fair Value | 10,922 | |||||||||
Trail Tire Distributors Ltd | Customer list | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible Assets, Estimated Fair Value | 10,922 | [1] | ||||||||
Acquired finite-lived intangible assets, useful life | 18 years | |||||||||
Trail Tire Distributors Ltd | Favorable leases | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Acquired finite-lived intangible assets, useful life | 5 years | |||||||||
Trail Tire Distributors Ltd | Tradenames | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Acquired finite-lived intangible assets, useful life | 15 years | |||||||||
Extreme Wheel Distributors Ltd | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible Assets, Estimated Fair Value | 3,985 | |||||||||
Extreme Wheel Distributors Ltd | Customer list | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible Assets, Estimated Fair Value | 3,985 | [1] | ||||||||
Acquired finite-lived intangible assets, useful life | 18 years | |||||||||
Extreme Wheel Distributors Ltd | Favorable leases | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Acquired finite-lived intangible assets, useful life | 5 years | |||||||||
Extreme Wheel Distributors Ltd | Tradenames | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Acquired finite-lived intangible assets, useful life | 15 years | |||||||||
Kirks Tire Ltd | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible Assets, Estimated Fair Value | 43,971 | |||||||||
Kirks Tire Ltd | Customer list | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible Assets, Estimated Fair Value | 43,971 | [1] | ||||||||
Acquired finite-lived intangible assets, useful life | 18 years | |||||||||
Kirks Tire Ltd | Favorable leases | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Acquired finite-lived intangible assets, useful life | 5 years | |||||||||
Kirks Tire Ltd | Tradenames | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Acquired finite-lived intangible assets, useful life | 15 years | |||||||||
Regional Tire Distributors (Edmonton) Inc | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible Assets, Estimated Fair Value | 21,549 | |||||||||
Regional Tire Distributors (Edmonton) Inc | Customer list | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible Assets, Estimated Fair Value | 21,549 | [1] | ||||||||
Acquired finite-lived intangible assets, useful life | 18 years | |||||||||
Regional Tire Distributors (Edmonton) Inc | Favorable leases | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Acquired finite-lived intangible assets, useful life | 5 years | |||||||||
Regional Tire Distributors (Edmonton) Inc | Tradenames | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Acquired finite-lived intangible assets, useful life | 15 years | |||||||||
Regional Tire Distributors (Calgary) Inc | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible Assets, Estimated Fair Value | 9,707 | |||||||||
Regional Tire Distributors (Calgary) Inc | Customer list | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible Assets, Estimated Fair Value | 9,707 | [1] | ||||||||
Acquired finite-lived intangible assets, useful life | 18 years | |||||||||
Regional Tire Distributors (Calgary) Inc | Favorable leases | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Acquired finite-lived intangible assets, useful life | 5 years | |||||||||
Regional Tire Distributors (Calgary) Inc | Tradenames | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Acquired finite-lived intangible assets, useful life | 15 years | |||||||||
Regional Tire Holdings Inc. | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible Assets, Estimated Fair Value | 42,990 | |||||||||
Regional Tire Holdings Inc. | Customer list | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible Assets, Estimated Fair Value | 40,720 | |||||||||
Acquired finite-lived intangible assets, useful life | 16 years | |||||||||
Regional Tire Holdings Inc. | Favorable leases | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible Assets, Estimated Fair Value | 370 | |||||||||
Acquired finite-lived intangible assets, useful life | 4 years | |||||||||
Regional Tire Holdings Inc. | Tradenames | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible Assets, Estimated Fair Value | 1,900 | |||||||||
Acquired finite-lived intangible assets, useful life | 5 years | |||||||||
TriCan Tire Distributors | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible Assets, Estimated Fair Value | 49,940 | |||||||||
TriCan Tire Distributors | Customer list | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible Assets, Estimated Fair Value | 44,621 | |||||||||
Acquired finite-lived intangible assets, useful life | 16 years | |||||||||
TriCan Tire Distributors | Favorable leases | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible Assets, Estimated Fair Value | 361 | |||||||||
Acquired finite-lived intangible assets, useful life | 6 years | |||||||||
TriCan Tire Distributors | Tradenames | ||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||||
Intangible Assets, Estimated Fair Value | $4,958 | |||||||||
Acquired finite-lived intangible assets, useful life | 7 years | |||||||||
[1] | Estimated useful life is eighteen years. | |||||||||
[2] | Esimated useful life is five years. | |||||||||
[3] | Esimated useful life is fifteen years |
Intangible_Assets_Based_on_Est1
Intangible Assets Based on Estimated Fair Value (Parenthetical) (Detail) | 12 Months Ended | 0 Months Ended | ||
Jan. 03, 2015 | Mar. 28, 2014 | Jan. 31, 2014 | Jun. 27, 2014 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets, useful life | 18 years | |||
Customer list | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets, useful life | 18 years | |||
Favorable leases | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets, useful life | 5 years | |||
Tradenames | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets, useful life | 15 years | |||
Terry's Tire Town Holdings, Inc. | Customer list | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets, useful life | 18 years | |||
Terry's Tire Town Holdings, Inc. | Favorable leases | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets, useful life | 5 years | |||
Terry's Tire Town Holdings, Inc. | Tradenames | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets, useful life | 15 years | |||
Hercules | Customer list | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets, useful life | 18 years | |||
Hercules | Favorable leases | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets, useful life | 5 years | |||
Hercules | Tradenames | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets, useful life | 15 years | |||
Trail Tire Distributors Ltd | Customer list | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets, useful life | 18 years | |||
Trail Tire Distributors Ltd | Favorable leases | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets, useful life | 5 years | |||
Trail Tire Distributors Ltd | Tradenames | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets, useful life | 15 years | |||
Extreme Wheel Distributors Ltd | Customer list | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets, useful life | 18 years | |||
Extreme Wheel Distributors Ltd | Favorable leases | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets, useful life | 5 years | |||
Extreme Wheel Distributors Ltd | Tradenames | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets, useful life | 15 years | |||
Kirks Tire Ltd | Customer list | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets, useful life | 18 years | |||
Kirks Tire Ltd | Favorable leases | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets, useful life | 5 years | |||
Kirks Tire Ltd | Tradenames | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets, useful life | 15 years | |||
Regional Tire Distributors (Edmonton) Inc | Customer list | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets, useful life | 18 years | |||
Regional Tire Distributors (Edmonton) Inc | Favorable leases | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets, useful life | 5 years | |||
Regional Tire Distributors (Edmonton) Inc | Tradenames | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets, useful life | 15 years | |||
Regional Tire Distributors (Calgary) Inc | Customer list | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets, useful life | 18 years | |||
Regional Tire Distributors (Calgary) Inc | Favorable leases | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets, useful life | 5 years | |||
Regional Tire Distributors (Calgary) Inc | Tradenames | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets, useful life | 15 years |
Unaudited_Pro_Forma_Supplement
Unaudited Pro Forma Supplementary Data Related to 2014 Acquisitions and RTD Acquisition (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Business Acquisition, Pro Forma Information [Line Items] | |||
Net sales | $5,240,010 | $5,106,493 | $3,765,737 |
Net income (loss) | ($67,628) | ($91,868) | ($12,170) |
Inventories_Additional_Informa
Inventories - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Inventory [Line Items] | |||
Inventory step-up amortization period | 2 months | ||
Inventory step-up amortization expense | $35.90 | $5.40 | $4.10 |
2014 Acquisitions | |||
Inventory [Line Items] | |||
Inventory, estimated fair value adjustment | 34.4 | ||
Inventory step-up amortization expense | 34.3 | ||
TriCan Tire Distributors | |||
Inventory [Line Items] | |||
Inventory, estimated fair value adjustment | 6.3 | ||
Regional Tire Holdings Inc. | |||
Inventory [Line Items] | |||
Inventory, estimated fair value adjustment | 2.7 | ||
Tire Distributors, Inc. | |||
Inventory [Line Items] | |||
Inventory, estimated fair value adjustment | 0.2 | ||
Wholesale Tire Distributors Inc. | |||
Inventory [Line Items] | |||
Inventory, estimated fair value adjustment | $0.50 |
Assets_Held_for_Sale_Additiona
Assets Held for Sale - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | |||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | Jul. 31, 2014 | Mar. 28, 2014 | |
Long Lived Assets Held-for-sale [Line Items] | |||||
Assets held for sale | $799,000 | $910,000 | |||
Proceed from the sale of asset held for sale | 784,000 | 7,751,000 | 3,738,000 | ||
Terry's Tire Town Holdings, Inc. | |||||
Long Lived Assets Held-for-sale [Line Items] | |||||
Assets held for sale | 4,500,000 | ||||
Proceeds from disposal of business | 3,900,000 | ||||
Residential Properties | |||||
Long Lived Assets Held-for-sale [Line Items] | |||||
Assets held for sale | 800,000 | ||||
Facility located in Georgia | |||||
Long Lived Assets Held-for-sale [Line Items] | |||||
Proceed from the sale of asset held for sale | $400,000 |
Major_Classes_of_Property_and_
Major Classes of Property and Equipment (Detail) (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Buildings and leasehold improvements | $327,360 | $219,168 |
Less - Accumulated depreciation | -106,894 | -71,312 |
Property and equipment, net | 220,466 | 147,856 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Buildings and leasehold improvements | 4,724 | 1,665 |
Building and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Buildings and leasehold improvements | 36,586 | 22,811 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Buildings and leasehold improvements | 54,727 | 27,515 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Buildings and leasehold improvements | 57,416 | 46,459 |
Internal use software | ||
Property, Plant and Equipment [Line Items] | ||
Buildings and leasehold improvements | 164,039 | 117,607 |
Vehicles and other | ||
Property, Plant and Equipment [Line Items] | ||
Buildings and leasehold improvements | $9,868 | $3,111 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $38,600,000 | $29,500,000 | $23,100,000 |
Accumulated depreciation | 106,894,000 | 71,312,000 | |
Assets Held under Capital Leases | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | 300,000 | 300,000 | 200,000 |
Accumulated depreciation | 1,400,000 | 1,100,000 | |
Sale and lease back assets book value, net | $6,700,000 | $6,900,000 |
Changes_in_Carrying_Amount_of_
Changes in Carrying Amount of Goodwill (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 |
Goodwill [Line Items] | ||
Beginning balance | $504,333 | $483,143 |
Purchase accounting adjustments | 128 | -1,349 |
Acquisitions | 238,871 | 25,408 |
Currency Translation | -10,078 | -2,869 |
Ending balance | $733,254 | $504,333 |
Goodwill_Additional_Informatio
Goodwill - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Jan. 03, 2015 | Dec. 28, 2013 | Jul. 05, 2014 | Apr. 05, 2014 | Oct. 04, 2014 | Dec. 29, 2012 | Jun. 27, 2014 | Dec. 13, 2013 | 28-May-10 | Nov. 03, 2014 | |
Goodwill [Line Items] | ||||||||||
Goodwill | $733,254,000 | $504,333,000 | $483,143,000 | |||||||
Net goodwill, deductible for income tax purposes | 165,000,000 | |||||||||
Goodwill impairment losses | 0 | |||||||||
Acquired finite-lived intangible assets, useful life | 18 years | |||||||||
Working capital adjustment change in goodwill, value | 128,000 | -1,349,000 | ||||||||
Minimum | ||||||||||
Goodwill [Line Items] | ||||||||||
Acquired finite-lived intangible assets, useful life | 1 year | |||||||||
Maximum | ||||||||||
Goodwill [Line Items] | ||||||||||
Acquired finite-lived intangible assets, useful life | 19 years | |||||||||
Noncompete agreement | Minimum | ||||||||||
Goodwill [Line Items] | ||||||||||
Acquired finite-lived intangible assets, useful life | 1 year | |||||||||
Noncompete agreement | Maximum | ||||||||||
Goodwill [Line Items] | ||||||||||
Acquired finite-lived intangible assets, useful life | 5 years | |||||||||
Trail Tire Distributors Ltd | ||||||||||
Goodwill [Line Items] | ||||||||||
Goodwill | 6,600,000 | |||||||||
Extreme Wheel Distributors Ltd | ||||||||||
Goodwill [Line Items] | ||||||||||
Goodwill | 1,500,000 | |||||||||
Kirks Tire Ltd | ||||||||||
Goodwill [Line Items] | ||||||||||
Goodwill | 25,600,000 | |||||||||
Regional Tire Distributors (Edmonton) Inc | ||||||||||
Goodwill [Line Items] | ||||||||||
Goodwill | 8,900,000 | |||||||||
Regional Tire Distributors (Calgary) Inc | ||||||||||
Goodwill [Line Items] | ||||||||||
Goodwill | 8,800,000 | |||||||||
Hercules | ||||||||||
Goodwill [Line Items] | ||||||||||
Goodwill | 73,700,000 | |||||||||
Working capital adjustment change in goodwill, value | -400,000 | |||||||||
Wholesale Tire Distributors Inc. | ||||||||||
Goodwill [Line Items] | ||||||||||
Goodwill | 1,200,000 | 1,200,000 | ||||||||
Working capital adjustment change in goodwill, value | 100,000 | |||||||||
TPG Merger | ||||||||||
Goodwill [Line Items] | ||||||||||
Goodwill | 418,600,000 | |||||||||
Small businesses | Canada | ||||||||||
Goodwill [Line Items] | ||||||||||
Goodwill | 100,000 | |||||||||
Small businesses | Canada | Noncompete agreement | ||||||||||
Goodwill [Line Items] | ||||||||||
Preliminary purchase price allocation, finite-lived intangible assets | 3,300,000 | |||||||||
Small businesses | Canada | Noncompete agreement | Minimum | ||||||||||
Goodwill [Line Items] | ||||||||||
Acquired finite-lived intangible assets, useful life | 2 years | |||||||||
Small businesses | Canada | Noncompete agreement | Maximum | ||||||||||
Goodwill [Line Items] | ||||||||||
Acquired finite-lived intangible assets, useful life | 5 years | |||||||||
Terry's Tire Town Holdings, Inc. | ||||||||||
Goodwill [Line Items] | ||||||||||
Goodwill | 112,000,000 | |||||||||
Working capital adjustment change in goodwill, value | -5,400,000 | |||||||||
Regional Tire Distributors British Columbia Inc | ||||||||||
Goodwill [Line Items] | ||||||||||
Goodwill | $1,600,000 |
Intangible_Assets_Additional_I
Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | |||||||||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | Nov. 03, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Jan. 31, 2014 | Dec. 13, 2013 | Aug. 30, 2013 | Apr. 30, 2013 | Nov. 30, 2012 | 24-May-12 | 28-May-10 | |
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 18 years | ||||||||||||
Intangible assets | $1,042,718,000 | $713,294,000 | |||||||||||
Intangible asset, amortization expense | 114,300,000 | 76,200,000 | 66,200,000 | ||||||||||
Estimated amortization expense in 2015 | 126,000,000 | ||||||||||||
Estimated amortization expense in 2016 | 106,400,000 | ||||||||||||
Estimated amortization expense in 2017 | 91,500,000 | ||||||||||||
Estimated amortization expense in 2018 | 77,400,000 | ||||||||||||
Estimated amortization expense in 2019 | 67,900,000 | ||||||||||||
Customer list | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 18 years | ||||||||||||
Favorable leases | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 5 years | ||||||||||||
Tradenames | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 15 years | ||||||||||||
TPG Merger | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Intangible assets | 781,300,000 | ||||||||||||
Regional Tire Distributors British Columbia Inc | Customer list | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 18 years | ||||||||||||
Finite-lived intangible assets | 12,200,000 | ||||||||||||
Trail Tire Distributors Ltd | Customer list | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 18 years | ||||||||||||
Finite-lived intangible assets | 10,900,000 | ||||||||||||
Trail Tire Distributors Ltd | Favorable leases | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 5 years | ||||||||||||
Trail Tire Distributors Ltd | Tradenames | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 15 years | ||||||||||||
Extreme Wheel Distributors Ltd | Customer list | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 18 years | ||||||||||||
Finite-lived intangible assets | 4,000,000 | ||||||||||||
Extreme Wheel Distributors Ltd | Favorable leases | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 5 years | ||||||||||||
Extreme Wheel Distributors Ltd | Tradenames | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 15 years | ||||||||||||
Kirks Tire Ltd | Customer list | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 18 years | ||||||||||||
Finite-lived intangible assets | 44,000,000 | ||||||||||||
Kirks Tire Ltd | Favorable leases | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 5 years | ||||||||||||
Kirks Tire Ltd | Tradenames | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 15 years | ||||||||||||
Regional Tire Distributors (Edmonton) Inc | Customer list | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 18 years | ||||||||||||
Finite-lived intangible assets | 21,500,000 | ||||||||||||
Regional Tire Distributors (Edmonton) Inc | Favorable leases | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 5 years | ||||||||||||
Regional Tire Distributors (Edmonton) Inc | Tradenames | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 15 years | ||||||||||||
Regional Tire Distributors (Calgary) Inc | Customer list | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 18 years | ||||||||||||
Finite-lived intangible assets | 9,700,000 | ||||||||||||
Regional Tire Distributors (Calgary) Inc | Favorable leases | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 5 years | ||||||||||||
Regional Tire Distributors (Calgary) Inc | Tradenames | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 15 years | ||||||||||||
Terry's Tire Town Holdings, Inc. | Customer list | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 18 years | ||||||||||||
Finite-lived intangible assets | 185,800,000 | ||||||||||||
Terry's Tire Town Holdings, Inc. | Favorable leases | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 5 years | ||||||||||||
Finite-lived intangible assets | 400,000 | ||||||||||||
Terry's Tire Town Holdings, Inc. | Tradenames | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 15 years | ||||||||||||
Hercules | Customer list | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 18 years | ||||||||||||
Finite-lived intangible assets | 147,200,000 | ||||||||||||
Hercules | Favorable leases | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 5 years | ||||||||||||
Hercules | Tradenames | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 15 years | ||||||||||||
Finite-lived intangible assets | 8,500,000 | ||||||||||||
Wholesale Tire Distributors Inc. | Customer list | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 16 years | ||||||||||||
Finite-lived intangible assets | 4,400,000 | ||||||||||||
Tire Distributors, Inc. | Customer list | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 16 years | ||||||||||||
Finite-lived intangible assets | 3,400,000 | ||||||||||||
Regional Tire Holdings Inc. | Customer list | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 16 years | ||||||||||||
Finite-lived intangible assets | 40,700,000 | ||||||||||||
Regional Tire Holdings Inc. | Favorable leases | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 4 years | ||||||||||||
Finite-lived intangible assets | 400,000 | ||||||||||||
Regional Tire Holdings Inc. | Tradenames | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 5 years | ||||||||||||
Finite-lived intangible assets | 1,900,000 | ||||||||||||
TriCan Tire Distributors | Customer list | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 16 years | ||||||||||||
Finite-lived intangible assets | 44,600,000 | ||||||||||||
Finite-lived intangible assets useful life | 16 years | ||||||||||||
TriCan Tire Distributors | Favorable leases | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 6 years | ||||||||||||
Finite-lived intangible assets | 400,000 | ||||||||||||
Finite-lived intangible assets useful life | 6 years | ||||||||||||
TriCan Tire Distributors | Tradenames | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 7 years | ||||||||||||
Finite-lived intangible assets | 4,900,000 | ||||||||||||
Finite-lived intangible assets useful life | 7 years | ||||||||||||
Consolidated Tire & Oil | Customer list | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Finite-lived intangible assets | $15,900,000 | ||||||||||||
Finite-lived intangible assets useful life | 16 years | ||||||||||||
Minimum | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 1 year | ||||||||||||
Minimum | Customer list | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 16 years | ||||||||||||
Minimum | Favorable leases | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 4 years | ||||||||||||
Minimum | Tradenames | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 1 year | ||||||||||||
Maximum | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 19 years | ||||||||||||
Maximum | Customer list | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 19 years | ||||||||||||
Maximum | Favorable leases | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 6 years | ||||||||||||
Maximum | Tradenames | |||||||||||||
Indefinite And Finite Lived Intangible Assets [Line Items] | |||||||||||||
Acquired finite-lived intangible assets, useful life | 15 years |
Gross_Amount_and_Accumulated_A
Gross Amount and Accumulated Amortization of Intangible Assets (Detail) (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Amount | $1,136,141 | $700,288 |
Accumulated Amortization | 343,316 | 236,887 |
Tradenames (indefinite-lived) | 249,893 | 249,893 |
Total intangible assets, Gross Amount | 1,386,034 | 950,181 |
Customer list | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Amount | 1,101,389 | 677,062 |
Accumulated Amortization | 328,403 | 226,614 |
Noncompete agreement | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Amount | 21,143 | 12,007 |
Accumulated Amortization | 10,459 | 6,400 |
Favorable leases | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Amount | 1,017 | 688 |
Accumulated Amortization | 300 | 119 |
Tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Amount | 12,592 | 10,531 |
Accumulated Amortization | $4,154 | $3,754 |
LongTerm_Debt_Detail
Long-Term Debt (Detail) (USD $) | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 31, 2011 |
Debt Instrument [Line Items] | |||
Term Loan | $714,175,000 | ||
Senior Subordinated Notes | 421,736,000 | 200,000,000 | |
Senior Secured Notes | 248,219,000 | ||
Capital lease obligations | 12,448,000 | 12,330,000 | 14,100,000 |
Other | 6,116,000 | 1,098,000 | |
Total | 1,816,115,000 | 967,000,000 | |
Less - Current maturities | -9,768,000 | -564,000 | |
Long-term debt | 1,806,347,000 | 966,436,000 | |
United States | |||
Debt Instrument [Line Items] | |||
ABL Facility | 581,167,000 | 417,066,000 | |
United States | FILO Facility | |||
Debt Instrument [Line Items] | |||
ABL Facility | 80,000,000 | 51,863,000 | |
Canada | |||
Debt Instrument [Line Items] | |||
ABL Facility | $473,000 | $36,424,000 |
Longterm_Debt_Additional_Infor
Long-term Debt - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 6 Months Ended | 0 Months Ended | ||||||
Feb. 01, 2012 | Mar. 27, 2002 | Mar. 31, 2002 | Jan. 03, 2015 | Dec. 29, 2012 | Jan. 31, 2014 | Mar. 28, 2014 | Jul. 05, 2014 | Jun. 16, 2014 | 28-May-10 | Dec. 28, 2013 | Dec. 31, 2011 | |
Facility | Facility | Facility | ||||||||||
Times | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Aggregate principal amount senior note | $714,175,000 | |||||||||||
Redemption of senior secured notes, value | 246,900,000 | |||||||||||
Loss on extinguishment of debt | -17,195,000 | |||||||||||
Write-off of deferred financing costs | 3,300,000 | 2,800,000 | ||||||||||
Capital lease obligation | 12,448,000 | 12,330,000 | 14,100,000 | |||||||||
Lease-backed facility, lease term | 20 years | |||||||||||
Sale-leaseback transaction, number of renewal options | 2 | |||||||||||
Sale-leaseback transaction, renewal option period | 5 years | 10 years | ||||||||||
Number of facilities under sale-leaseback transaction | 3 | 3 | ||||||||||
Payment to reacquire facility included in sale-leaseback transaction and treated as debt modification for accounting purposes | 1,500,000 | |||||||||||
Number of facilities reacquired under sale-leaseback transaction | 1 | |||||||||||
Remaining lease payment term | 15 years | |||||||||||
Sale-Leaseback Capital Lease | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Capital lease obligation | 11,900,000 | |||||||||||
United States | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, outstanding amount | 581,167,000 | 417,066,000 | ||||||||||
United States | FILO Facility | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, outstanding amount | 80,000,000 | 51,863,000 | ||||||||||
Canada | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, outstanding amount | 473,000 | 36,424,000 | ||||||||||
ABL Facility | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Debt instrument maturity date | 16-Nov-17 | |||||||||||
Revolving credit facility, covenant description | The ABL Facility and FILO Facility contain customary covenants, including covenants that restrict the Companybs ability to incur additional debt, grant liens, enter into guarantees, enter into certain mergers, make certain loans and investments, dispose of assets, prepay certain debt, declare dividends, modify certain material agreements, enter into transactions with affiliates or change the Companybs fiscal year. The terms of the ABL Facility and FILO Facility generally restrict distributions or the payment of dividends in respect of the Companybs stock subject to certain exceptions requiring compliance with certain availability levels and fixed charge coverage ratios under the ABL Facility and other customary negotiated exceptions. As of January 3, 2015, the Company was in compliance with these covenants. If the amount available for additional borrowings under the ABL Facility is less than the greater of (a) 10.0% of the lesser of (x) the aggregate commitments under the ABL Facility and (y) the aggregate borrowing base and (b) $25.0 million, then the Company would be subject to an additional covenant requiring them to meet a fixed charge coverage ratio of 1.0 to 1.0. As of January 3, 2015, the Companybs additional borrowing availability under the ABL Facility was above the required amount and the Company was therefore not subject to the additional covenants. | |||||||||||
Percentage available additional borrowing under credit facility | 10.00% | |||||||||||
Additional covenant required amount | 25,000,000 | |||||||||||
Fixed charge coverage ratio | 100.00% | |||||||||||
ABL Facility | FILO Facility | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Debt instrument maturity date | 31-Jan-17 | |||||||||||
Debt issuance costs | 700,000 | |||||||||||
Revolving credit facility, borrowing base description | The U.S. FILO and the Canadian FILO borrowing base at any time equals the sum (subject to certain reserves and other adjustments) of 5% of eligible accounts receivable of the U.S. or Canadian loan parties, as applicable; plus 10% of the net orderly liquidation value of the eligible tire and non-tire inventory of the U.S. or Canadian loan parties, as applicable. | |||||||||||
Eligible accounts receivable | 5.00% | |||||||||||
Net orderly liquidation value of eligible inventory | 10.00% | |||||||||||
ABL Facility | Scenario 3 | Maximum | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility additional increase in borrowing capacity | 175,000,000 | |||||||||||
ABL Facility | United States | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, maximum borrowing capacity | 850,000,000 | |||||||||||
Revolving credit facility, outstanding amount | 581,200,000 | |||||||||||
Revolving credit facility, outstanding letters of credit | 11,000,000 | |||||||||||
Revolving credit facility remaining additional borrowing capacity | 236,600,000 | |||||||||||
Revolving credit facility, interest rate description | Borrowings under the U.S. ABL Facility bear interest at a rate per annum equal to, at the Companybs option, either (a) 175 basis points over an adjusted LIBOR rate or (b) 75 basis points over an alternative base rate (the higher of the prime rate, the federal funds rate plus 50 basis points and one month-adjusted LIBOR rate plus 100 basis points). The applicable margins under the U.S. ABL Facility are subject to step ups and step downs based on average excess borrowing availability under the ABL Facility. | |||||||||||
Revolving credit facility, borrowing base description | The U.S. and Canadian borrowing base at any time equals the sum (subject to certain reserves and other adjustments) of: b" 85% of eligible accounts receivable of the U.S. or Canadian loan parties, as applicable; plus b" The lesser of (a) 70% of the lesser of cost or market value of eligible tire inventory of the U.S. or Canadian loan parties, as applicable and (b) 85% of the net orderly liquidation value of eligible tire inventory of the U.S. or Canadian loan parties, as applicable; plus b" The lesser of (a) 50% of the lower of cost or market value of eligible non-tire inventory of the U.S. or Canadian loan parties, as applicable and (b) 85% of the net orderly liquidation value of eligible non-tire inventory of the U.S. or Canadian loan parties, as applicable. | |||||||||||
Eligible accounts receivable | 85.00% | |||||||||||
ABL Facility | United States | Commercial and Standby Letters of Credit | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, maximum borrowing capacity | 50,000,000 | |||||||||||
ABL Facility | United States | FILO Facility | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, maximum borrowing capacity | 80,000,000 | |||||||||||
Revolving credit facility, outstanding amount | 80,000,000 | |||||||||||
Revolving credit facility, interest rate description | Borrowings under the U.S. FILO Facility bear interest at a rate per annum equal to, at the Companybs option, either (a) 325 basis points over an adjusted LIBOR rate or (b) 225 basis points over an alternative base rate (the higher of the prime rate, the federal funds rate plus 50 basis points and one month-adjusted LIBOR plus 100 basis points). The applicable margins under the U.S. FILO Facility are subject to step ups and step downs based on average excess borrowing availability under the ABL Facility | |||||||||||
ABL Facility | United States | Alternative Base Rate | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, variable rate | 0.75% | |||||||||||
ABL Facility | United States | Alternative Base Rate | FILO Facility | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, variable rate | 2.25% | |||||||||||
ABL Facility | United States | Federal Funds Effective Rate | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, variable rate | 0.50% | |||||||||||
ABL Facility | United States | Federal Funds Effective Rate | FILO Facility | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, variable rate | 0.50% | |||||||||||
ABL Facility | United States | Adjusted LIBOR | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, variable rate | 1.75% | |||||||||||
ABL Facility | United States | Adjusted LIBOR | FILO Facility | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, variable rate | 3.25% | |||||||||||
ABL Facility | United States | One Month-Adjusted LIBOR | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, variable rate | 1.00% | |||||||||||
ABL Facility | United States | One Month-Adjusted LIBOR | FILO Facility | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, variable rate | 1.00% | |||||||||||
ABL Facility | United States | Tire Inventory | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Lesser of cost or fair market value of eligible inventory | 70.00% | |||||||||||
Net orderly liquidation value of eligible inventory | 85.00% | |||||||||||
ABL Facility | United States | Non-tire Inventory | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Lesser of cost or fair market value of eligible inventory | 50.00% | |||||||||||
Net orderly liquidation value of eligible inventory | 85.00% | |||||||||||
ABL Facility | Canada | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, maximum borrowing capacity | 125,000,000 | |||||||||||
Revolving credit facility, outstanding amount | 500,000 | |||||||||||
Revolving credit facility remaining additional borrowing capacity | 124,500,000 | |||||||||||
Revolving credit facility, interest rate description | Borrowings under the Canadian ABL Facility bear interest at a rate per annum equal to, at the Companybs option, either (a) 75 basis points over an alternative Canadian base rate (the higher of the base rate as published by Bank of America, N.A., acting through its Canada branch, the federal funds rate plus 50 basis points and one month-LIBOR plus 100 basis points), (b) 75 basis points over a Canadian prime rate determined in accordance with the Canadian ABL Facility, (c) 175 basis points over a rate determined by reference to the average rate applicable to Canadian Dollar bankersb acceptances having an identical or comparable term as the proposed loan amount or (d) 175 basis points over an adjusted LIBOR rate. The applicable margins under the Canadian ABL Facility are subject to step ups and step downs based on average excess borrowing availability under the ABL Facility. | |||||||||||
Revolving credit facility, borrowing base description | The U.S. and Canadian borrowing base at any time equals the sum (subject to certain reserves and other adjustments) of: b" 85% of eligible accounts receivable of the U.S. or Canadian loan parties, as applicable; plus b" The lesser of (a) 70% of the lesser of cost or market value of eligible tire inventory of the U.S. or Canadian loan parties, as applicable and (b) 85% of the net orderly liquidation value of eligible tire inventory of the U.S. or Canadian loan parties, as applicable; plus b" The lesser of (a) 50% of the lower of cost or market value of eligible non-tire inventory of the U.S. or Canadian loan parties, as applicable and (b) 85% of the net orderly liquidation value of eligible non-tire inventory of the U.S. or Canadian loan parties, as applicable. | |||||||||||
Eligible accounts receivable | 85.00% | |||||||||||
ABL Facility | Canada | Commercial and Standby Letters of Credit | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, maximum borrowing capacity | 10,000,000 | |||||||||||
ABL Facility | Canada | FILO Facility | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, maximum borrowing capacity | 15,000,000 | |||||||||||
Revolving credit facility, outstanding amount | 0 | |||||||||||
Revolving credit facility remaining additional borrowing capacity | 14,800,000 | |||||||||||
Revolving credit facility, interest rate description | Borrowings under the Canadian FILO Facility bear interest at a rate per annum equal to, at the Companybs option, either (a) 225 basis points over an alternative Canadian base rate (the higher of the base rate as published by Bank of America, N.A., acting through its Canada branch, the federal funds rate plus 50 basis points and one month-LIBOR plus 100 basis points), (b) 225 basis points over a Canadian prime rate determined in accordance with the Canadian ABL Facility, (c) 325 basis points over a rate determined by reference to the average rate applicable to Canadian Dollar bankersb acceptances having an identical or comparable term as the proposed loan amount or (d) 325 basis points over an adjusted LIBOR rate. The applicable margins under the Canadian FILO Facility are subject to step ups and step downs based on average excess borrowing availability under the ABL Facility. | |||||||||||
ABL Facility | Canada | Alternative Base Rate | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, variable rate | 0.75% | |||||||||||
ABL Facility | Canada | Alternative Base Rate | FILO Facility | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, variable rate | 2.25% | |||||||||||
ABL Facility | Canada | Federal Funds Effective Rate | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, variable rate | 0.50% | |||||||||||
ABL Facility | Canada | Federal Funds Effective Rate | FILO Facility | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, variable rate | 0.50% | |||||||||||
ABL Facility | Canada | Adjusted LIBOR | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, variable rate | 1.75% | |||||||||||
ABL Facility | Canada | Adjusted LIBOR | FILO Facility | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, variable rate | 3.25% | |||||||||||
ABL Facility | Canada | One Month-Adjusted LIBOR | FILO Facility | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, variable rate | 1.00% | |||||||||||
ABL Facility | Canada | One Month-Adjusted LIBOR Plus 1.0% | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, variable rate | 1.00% | |||||||||||
ABL Facility | Canada | Canadian prime rate | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, variable rate | 0.75% | |||||||||||
ABL Facility | Canada | Canadian prime rate | FILO Facility | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, variable rate | 2.25% | |||||||||||
ABL Facility | Canada | Bankers' Acceptance Rate | Canadian Dollar bankers | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, variable rate | 1.75% | |||||||||||
ABL Facility | Canada | Bankers' Acceptance Rate | FILO Facility | Canadian Dollar bankers | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, variable rate | 3.25% | |||||||||||
ABL Facility | Canada | Scenario 3 | Maximum | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility additional increase in borrowing capacity | 25,000,000 | |||||||||||
ABL Facility | Canada | Tire Inventory | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Lesser of cost or fair market value of eligible inventory | 70.00% | |||||||||||
Net orderly liquidation value of eligible inventory | 85.00% | |||||||||||
ABL Facility | Canada | Non-tire Inventory | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Lesser of cost or fair market value of eligible inventory | 50.00% | |||||||||||
Net orderly liquidation value of eligible inventory | 85.00% | |||||||||||
Senior Secured Term Loan | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, maximum borrowing capacity | 300,000,000 | |||||||||||
Debt instrument maturity date | 1-Jun-18 | |||||||||||
Debt issuance costs | 14,000,000 | |||||||||||
Senior secured term loan discount rate | 0.25% | |||||||||||
Net proceeds from issuance of senior secured term loan | 290,900,000 | |||||||||||
Debt instrument, effective interest rate | 6.00% | |||||||||||
Revolving credit facility, floor rate | 1.00% | |||||||||||
Percentage of net income subject to debt covenant | 50.00% | |||||||||||
Percentage reduction in net loss subject to debt covenant | 100.00% | |||||||||||
Term loan covenant compliance | As of January 3, 2015, the Company was in compliance with these covenants. | |||||||||||
Debt Instrument, Frequency of Periodic Payment, Description | The Company was required to make a principal payment under the Term Loan equal to $1.6 million on the last business day of June 2014. Commencing with the last business day of September 2014, the Company is required to make principal payments equal to $1.8 million on the last business day of each March, June, September and December. | |||||||||||
Principal payments | 1,800,000 | 1,600,000 | ||||||||||
Senior Secured Term Loan | 50% of its annual excess cash flow | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Senior secured term loan covenant requirement percentage | 50.00% | |||||||||||
Senior Secured Term Loan | Percentage will be reduced to 25% as applicable, subject to ATDI attaining certain senior secured net leverage ratios | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Senior secured term loan covenant requirement percentage | 25.00% | |||||||||||
Senior Secured Term Loan | Percentage will be reduced to 0% as applicable, subject to ATDI attaining certain senior secured net leverage ratios | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Senior secured term loan covenant requirement percentage | 0.00% | |||||||||||
Senior Secured Term Loan | Incremental Term Loan | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, maximum borrowing capacity | 340,000,000 | |||||||||||
Net proceeds from issuance of senior secured term loan | 335,700,000 | |||||||||||
Senior Secured Term Loan | Delayed Draw Term Loan | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, maximum borrowing capacity | 80,000,000 | |||||||||||
Senior Secured Term Loan | Eurodollar Libor Rate | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, variable rate | 4.75% | |||||||||||
Senior Secured Term Loan | Alternative Base Rate | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, variable rate | 3.75% | |||||||||||
Senior Secured Term Loan | Federal Funds Effective Rate | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, variable rate | 0.50% | |||||||||||
Senior Secured Term Loan | One Month Eurodollar Rate | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Revolving credit facility, variable rate | 1.00% | |||||||||||
Senior Notes | Redeemed debt | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Aggregate principal amount senior note | 250,000,000 | |||||||||||
Debt instrument, fixed interest rate | 9.75% | |||||||||||
Senior secured notes, redemption date | 16-Jun-14 | |||||||||||
Debt redemption price as percentage of principal amount | 104.88% | |||||||||||
Redemption of senior secured notes, value | 263,200,000 | |||||||||||
Loss on extinguishment of debt | 17,200,000 | |||||||||||
Write-off of deferred financing costs | 4,900,000 | |||||||||||
Senior Notes | Redeemed debt | Incremental Term Loan | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Aggregate principal amount senior note | 250,000,000 | |||||||||||
Senior Subordinated Notes | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Fair value of long-term debt | 435,400,000 | 212,000,000 | ||||||||||
Aggregate principal amount senior note | 200,000,000 | |||||||||||
Percentage of net income subject to debt covenant | 50.00% | |||||||||||
Percentage reduction in net loss subject to debt covenant | 100.00% | |||||||||||
Term loan covenant compliance | As of January 3, 2015, the Company was in compliance with these covenants. | |||||||||||
Debt instrument, fixed interest rate | 11.50% | |||||||||||
Debt instrument maturity year | 2018 | |||||||||||
Debt instrument interest payment term | Interest on the Initial Subordinated Notes is payable semi-annually in arrears on June 1 and December 1 of each year, commencing on December 1, 2010. | |||||||||||
Debt instrument first interest payment date | 1-Dec-10 | |||||||||||
Redemption notice period, lower limit | 30 days | |||||||||||
Redemption notice period, upper limit | 60 days | |||||||||||
Senior Subordinated Notes | Between June 1, 2014 and May 31, 2015 | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Debt redemption price as percentage of principal amount | 102.00% | |||||||||||
Senior Subordinated Notes | Between June 1, 2015 and May 31, 2016 | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Debt redemption price as percentage of principal amount | 100.00% | |||||||||||
Senior Subordinated Notes | Hercules | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Debt issuance costs | 1,200,000 | |||||||||||
Net proceeds from issuance of senior secured term loan | 221,100,000 | |||||||||||
Debt instrument, effective interest rate | 12.00% | |||||||||||
Aggregate principal amount senior note | 225,000,000 | |||||||||||
Debt instrument, fixed interest rate | 11.50% | |||||||||||
Term Loan | ||||||||||||
Debt Disclosure [Line Items] | ||||||||||||
Fair value of long-term debt | $718,500,000 |
Aggregate_Maturities_of_LongTe
Aggregate Maturities of Long-Term Debt (Detail) (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
2015 | $9,768 | |
2016 | 8,910 | |
2017 | 670,682 | |
2018 | 1,116,007 | |
2019 | 686 | |
Thereafter | 10,062 | |
Total | $1,816,115 | $967,000 |
Derivative_Instruments_Additio
Derivative Instruments - Additional Information (Detail) (USD $) | 0 Months Ended | |||||||
In Millions, unless otherwise specified | Oct. 17, 2014 | Sep. 04, 2013 | Aug. 01, 2012 | Sep. 23, 2011 | Feb. 24, 2011 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
4Q 2014 Swaps | ||||||||
Derivative [Line Items] | ||||||||
Number of interest rate swap agreements | 2 | |||||||
Notional amount of interest rate swap | $600 | |||||||
3Q 2013 Swaps | Forward Starting Swap | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of interest rate swap | 100 | |||||||
Interest rate swap, fixed rate 2.29% and expire in January 2021 | 4Q 2014 Swaps | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of interest rate swap | 300 | |||||||
Interest rate swap, effective date | 2016-01 | |||||||
Interest rate swap, applicable fixed interest rate | 2.29% | |||||||
Interest rate swap, expiration date | 2021-01 | |||||||
Interest rate swap, fixed rate 2.44% and expired in January 2020 | 4Q 2014 Swaps | Forward Starting Swap | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of interest rate swap | 300 | |||||||
Interest rate swap, effective date | 2017-01 | |||||||
Interest rate swap, applicable fixed interest rate | 2.44% | |||||||
Interest rate swap, expiration date | 2020-01 | |||||||
Interest Rate Swap | 4Q 2014 Swaps | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of interest rate swap | 600 | 600 | 600 | |||||
Interest Rate Swap | 3Q 2013 Swaps | ||||||||
Derivative [Line Items] | ||||||||
Number of interest rate swap agreements | 3 | |||||||
Notional amount of interest rate swap | 100 | 200 | 200 | 200 | ||||
Interest rate swap, applicable fixed interest rate | 1.15% | |||||||
Interest rate swap, expiration date | 2016-09 | |||||||
Interest Rate Swap | 3Q 2012 Swaps | ||||||||
Derivative [Line Items] | ||||||||
Number of interest rate swap agreements | 2 | |||||||
Notional amount of interest rate swap | 100 | 100 | 100 | 100 | ||||
Interest Rate Swap | 3Q 2011 Swaps | ||||||||
Derivative [Line Items] | ||||||||
Number of interest rate swap agreements | 2 | |||||||
Notional amount of interest rate swap | 100 | 100 | 100 | 100 | ||||
Interest Rate Swap | 1Q 2011 Swap | ||||||||
Derivative [Line Items] | ||||||||
Number of interest rate swap agreements | 2 | |||||||
Notional amount of interest rate swap | 75 | |||||||
Interest rate swap, fixed interest rate of 1.464% and expires in September 2016 | 3Q 2013 Swaps | Forward Starting Swap | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of interest rate swap | 50 | |||||||
Interest rate swap, effective date | 2014-09 | |||||||
Interest rate swap, applicable fixed interest rate | 1.46% | |||||||
Interest rate swap, expiration date | 2016-09 | |||||||
Interest rate swap, fixed interest rate of 1.942% and expires in September 2016 | 3Q 2013 Swaps | Forward Starting Swap | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of interest rate swap | 50 | |||||||
Interest rate swap, effective date | 2015-09 | |||||||
Interest rate swap, applicable fixed interest rate | 1.94% | |||||||
Interest rate swap, expiration date | 2016-09 | |||||||
Interest rate swap, fixed rate 0.655% and expire in June 2016 (one) | 3Q 2012 Swaps | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of interest rate swap | 50 | |||||||
Interest rate swap, applicable fixed interest rate | 0.66% | |||||||
Interest rate swap, expiration date | 2016-06 | |||||||
Interest rate swap, fixed rate 0.655% and expire in June 2016 (two) | 3Q 2012 Swaps | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of interest rate swap | 50 | |||||||
Interest rate swap, applicable fixed interest rate | 0.66% | |||||||
Interest rate swap, expiration date | 2016-06 | |||||||
Interest rate swap, fixed rate 0.74% and expire in September 2014 | 3Q 2011 Swaps | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of interest rate swap | 50 | |||||||
Interest rate swap, applicable fixed interest rate | 0.74% | |||||||
Interest rate swap, expiration date | 2014-09 | |||||||
Interest rate swap, fixed rate 1.0% and expire in September 2015 | 3Q 2011 Swaps | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of interest rate swap | 50 | |||||||
Interest rate swap, applicable fixed interest rate | 1.00% | |||||||
Interest rate swap, expiration date | 2015-09 | |||||||
Interest rate swap, fixed rate 0.585% and expired in February 2011 | 1Q 2011 Swap | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of interest rate swap | 25 | 25 | 25 | 25 | ||||
Interest rate swap, applicable fixed interest rate | 0.59% | |||||||
Interest rate swap, expiration date | 2012-02 | |||||||
Interest rate swap, fixed rate 1.105% and expired in February 2013 | 1Q 2011 Swap | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of interest rate swap | $50 | $50 | $50 | $50 | ||||
Interest rate swap, applicable fixed interest rate | 1.11% | |||||||
Interest rate swap, expiration date | 2013-02 |
Fair_Values_of_Derivative_Inst
Fair Values of Derivative Instruments Included within Consolidated Balance Sheets (Detail) (Derivatives not designated as hedges, Accrued expenses, USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instruments | $7,860 | $2,952 |
Interest Rate Swap | 3Q 2011 Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instruments | 287 | 792 |
Interest Rate Swap | 3Q 2012 Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instruments | 220 | 280 |
Interest Rate Swap | 3Q 2013 Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instruments | 1,718 | 1,880 |
Interest Rate Swap | 4Q 2014 Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instruments | $5,635 |
Fair_Values_of_Derivative_Inst1
Fair Values of Derivative Instruments Included within Consolidated Balance Sheets (Parenthetical) (Detail) (USD $) | Oct. 17, 2014 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | Sep. 23, 2011 | Aug. 01, 2012 | Sep. 04, 2013 |
In Millions, unless otherwise specified | |||||||
4Q 2014 Swaps | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Notional amount of interest rate swap | $600 | ||||||
Interest Rate Swap | 3Q 2011 Swaps | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Notional amount of interest rate swap | 100 | 100 | 100 | 100 | |||
Interest Rate Swap | 3Q 2012 Swaps | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Notional amount of interest rate swap | 100 | 100 | 100 | 100 | |||
Interest Rate Swap | 3Q 2013 Swaps | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Notional amount of interest rate swap | 200 | 200 | 200 | 100 | |||
Interest Rate Swap | 4Q 2014 Swaps | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Notional amount of interest rate swap | $600 | $600 | $600 |
PreTax_Effect_of_Derivative_In
Pre-Tax Effect of Derivative Instruments on Consolidated Statement of Comprehensive Income (Loss) (Detail) (Interest Expense, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in interest expense | ($4,908) | ($739) | ($1,348) |
Interest rate swap, fixed rate 1.105% and expired in February 2013 | 1Q 2011 Swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in interest expense | 149 | 154 | |
Interest rate swap, fixed rate 0.585% and expired in February 2011 | 1Q 2011 Swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in interest expense | 12 | ||
Interest Rate Swap | 3Q 2011 Swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in interest expense | 505 | 522 | -764 |
Interest Rate Swap | 3Q 2012 Swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in interest expense | 60 | 470 | -750 |
Interest Rate Swap | 3Q 2013 Swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in interest expense | 162 | -1,880 | |
Interest Rate Swap | 4Q 2014 Swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in interest expense | ($5,635) |
PreTax_Effect_of_Derivative_In1
Pre-Tax Effect of Derivative Instruments on Consolidated Statement of Comprehensive Income (Loss) (Parenthetical) (Detail) (USD $) | Oct. 17, 2014 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | Feb. 24, 2011 | Sep. 23, 2011 | Aug. 01, 2012 | Sep. 04, 2013 |
In Millions, unless otherwise specified | ||||||||
4Q 2014 Swaps | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Notional amount of interest rate swap | $600 | |||||||
Interest rate swap, fixed rate 1.105% and expired in February 2013 | 1Q 2011 Swap | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Notional amount of interest rate swap | 50 | 50 | 50 | 50 | ||||
Interest rate swap, fixed rate 0.585% and expired in February 2011 | 1Q 2011 Swap | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Notional amount of interest rate swap | 25 | 25 | 25 | 25 | ||||
Interest Rate Swap | 1Q 2011 Swap | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Notional amount of interest rate swap | 75 | |||||||
Interest Rate Swap | 3Q 2011 Swaps | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Notional amount of interest rate swap | 100 | 100 | 100 | 100 | ||||
Interest Rate Swap | 3Q 2012 Swaps | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Notional amount of interest rate swap | 100 | 100 | 100 | 100 | ||||
Interest Rate Swap | 3Q 2013 Swaps | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Notional amount of interest rate swap | 200 | 200 | 200 | 100 | ||||
Interest Rate Swap | 4Q 2014 Swaps | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Notional amount of interest rate swap | $600 | $600 | $600 |
Fair_Value_and_Hierarchy_Level
Fair Value and Hierarchy Levels of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, USD $) | Jan. 03, 2015 |
In Thousands, unless otherwise specified | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Benefit trust assets | $3,698 |
Total | 3,698 |
Contingent consideration liabilities | 9,704 |
Derivative instruments liabilities | 7,860 |
Total | 17,564 |
Level 1 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Benefit trust assets | 3,698 |
Total | 3,698 |
Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Derivative instruments liabilities | 7,860 |
Total | 7,860 |
Level 3 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration liabilities | 9,704 |
Total | $9,704 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Additional Information (Detail) (USD $) | 12 Months Ended |
Jan. 03, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Changes in the fair value of contingent consideration liabilities | ($5,142,000) |
Accrued expenses | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration liabilities | 9,704,000 |
Terry's Tire Town Holdings, Inc. | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration liabilities | 12,500,000 |
Hercules | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration liabilities | 3,500,000 |
Terrys Tire Town Holdings Incorporated and Hercules Tire and Rubber Company | Retention of Certain Key Members of Management | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration liabilities | 12,300,000 |
Terrys Tire Town Holdings Incorporated and Hercules Tire and Rubber Company | Distribution Right | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration liabilities | $3,700,000 |
Summary_of_Changes_in_Fair_Val
Summary of Changes in Fair Value of Contingent Consideration Liabilities (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Jan. 03, 2015 |
Schedule of Changes in Fair Value of Contingent Consideration [Line Items] | |
Changes in the fair value of contingent consideration liabilities | $5,142 |
Payment of contingent consideration liabilities | 1,154 |
Level 3 | |
Schedule of Changes in Fair Value of Contingent Consideration [Line Items] | |
Changes in the fair value of contingent consideration liabilities | -5,142 |
Payment of contingent consideration liabilities | -1,154 |
Balance at January 3, 2015 | 9,704 |
Terrys Tire Town Holdings Incorporated and Hercules Tire and Rubber Company | Level 3 | |
Schedule of Changes in Fair Value of Contingent Consideration [Line Items] | |
Contingent consideration liabilities recorded | $16,000 |
Employee_Benefits_Additional_I
Employee Benefits - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 0 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | Apr. 28, 2014 | Oct. 31, 2010 | Aug. 30, 2010 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized for grant | 54,400,000 | ||||||
Number of shares available for grant | 300,000 | ||||||
Aggregate intrinsic value, options outstanding | $23.70 | ||||||
Aggregate intrinsic value, options exercisable | 16 | ||||||
Aggregate intrinsic value, estimated fair value per share | $1.50 | ||||||
Options vested, fair value | 3.3 | ||||||
Options exercised | 0 | ||||||
Weighted-average remaining contractual term for options outstanding | 5 years 8 months 12 days | ||||||
Weighted-average remaining contractual term for options exercisable | 5 years 6 months | ||||||
Weighted average fair value of stock options granted | $0.68 | $0.54 | $0.50 | ||||
Plan modification, description | The compensation committee of the Companybs indirect parent, ATD Corporation, approved an amendment to all outstanding stock options for certain eligible retiring employees to provide that all unvested stock options for each employee remain outstanding for 24 months following their termination and will remain eligible to vest in accordance with their terms during this period. Additionally, the amendment provided that each employee has 24 months following their termination to exercise any vested stock options. | ||||||
Incremental compensation cost | 1.7 | ||||||
Compensation cost, recognized | 0.8 | ||||||
Deferred compensation plan, employer contribution, annual vesting percentage | 20.00% | ||||||
Deferred compensation obligation, non-current | 3.7 | 3.4 | |||||
Deferred compensation, amount of funding through Rabbi Trust | 3.7 | 3.4 | |||||
Employer matching contribution based on employee contribution | 50.00% | ||||||
Employer matching contribution based on employee compensation | 6.00% | ||||||
401(K) matching and profit sharing contributions, vesting period | 5 years | ||||||
401(k) Plans | Selling, general and administrative expense | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Contributions by employer | 3.4 | 2.8 | 2 | ||||
Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options, expiration period | 10 years | ||||||
Contribution by company on behalf of employees | 0.1 | 0.1 | 0.1 | ||||
Before Amendment | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized for grant | 52,100,000 | ||||||
Risk-free interest rate | 0.04% | ||||||
Dividend yield | 0.00% | ||||||
Expected term | 3 months 18 days | ||||||
Volatility | 46.49% | ||||||
Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares of common stock approved for purchase | 4,500,000 | ||||||
Stock options, exercise price of shares | $1.50 | ||||||
Vesting period | 2 years | ||||||
Unrecognized compensation expense | 7.3 | ||||||
Unrecognized compensation expense, weighted-average period for recognition | 1 year | ||||||
Stock Options | Vesting Period One | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 2 years | ||||||
Stock Options | Vesting Period Two | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Stock Options | Vesting Period Three | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 5 years | ||||||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized for grant | 800,000 | ||||||
Number of shares of common stock approved for purchase | 100,000 | ||||||
Vesting period | 2 years | 2 years | |||||
Number of shares available for grant | 200,000 | ||||||
Unrecognized compensation expense, weighted-average period for recognition | 1 year | ||||||
Number of common stock for each restricted stock unit | 1 | ||||||
Restricted stock units, grant date fair value | $1.50 | $1.14 | $1.50 | ||||
Unrecognized compensation expense related to unvested share | $0.10 | ||||||
After Amendment | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Risk-free interest rate | 0.67% | ||||||
Dividend yield | 0.00% | ||||||
Expected term | 2 years | ||||||
Volatility | 46.49% |
Changes_in_Options_Outstanding
Changes in Options Outstanding under Two Thousand Ten Plan (Detail) (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Options Outstanding | |||
Options Outstanding, Exercised | 0 | ||
2010 Plan | |||
Options Outstanding | |||
Options Outstanding, Beginning balance | 49,516,503 | 46,681,600 | 44,598,400 |
Options Outstanding, Granted | 4,528,833 | 3,500,002 | 2,277,600 |
Options Outstanding, Exercised | -38,000 | ||
Options Outstanding, Cancelled | -665,099 | -156,400 | |
Options Outstanding, Ending balance | 54,045,336 | 49,516,503 | 46,681,600 |
Options Outstanding, Weighted Average Exercise Price | |||
Options Outstanding, Weighted Average Exercise Price, Beginning balance | $1.02 | $1.01 | $1 |
Options Outstanding, Weighted Average Exercise Price, Granted | $1.50 | $1.20 | $1.14 |
Options Outstanding, Weighted Average Exercise Price, Exercised | $1 | ||
Options Outstanding, Weighted Average Exercise Price, Cancelled | $1.01 | $1 | |
Options Outstanding, Weighted Average Exercise Price, Ending balance | $1.06 | $1.02 | $1.01 |
Options Exercisable | |||
Options Exercisable, Beginning balance | 27,794,844 | 17,594,936 | 8,710,401 |
Options Exercisable, Ending balance | 34,080,079 | 27,794,844 | 17,594,936 |
Options Exercisable, Weighted Average Exercise Price | |||
Options Exercisable, Weighted Average Exercise Price, Beginning Balance | $1.01 | $1 | $1 |
Options Exercisable, Weighted Average Exercise Price, Ending Balance | $1.03 | $1.01 | $1 |
Assumptions_Used_to_Determine_
Assumptions Used to Determine Average Fair Value of Stock Options of Two Thousand Ten Plan (Detail) (2010 Plan) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
2010 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.73% | 1.38% | 1.48% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected life | 5 years 9 months 18 days | 6 years | 6 years 6 months |
Volatility | 46.49% | 45.39% | 42.81% |
Activity_under_Two_Thousand_Te
Activity under Two Thousand Ten Restricted Stock Plan (Detail) (Restricted Stock, USD $) | 0 Months Ended | 12 Months Ended | ||
Apr. 28, 2014 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Restricted Stock | ||||
Number of Shares | ||||
Outstanding and unvested, beginning balance | 87,719 | 269,298 | 175,000 | |
Granted | 133,333 | 219,298 | ||
Vested | -87,719 | -159,649 | -125,000 | |
Cancelled | -21,930 | |||
Outstanding and unvested, ending balance | 133,333 | 87,719 | 269,298 | |
Weighted Average Exercise price | ||||
Outstanding and unvested, beginning balance | $1.14 | $1.11 | $1 | |
Granted | $1.50 | $1.50 | $1.14 | |
Vested | $1.14 | $1.10 | $1 | |
Cancelled | $1.14 | |||
Outstanding and unvested, ending balance | $1.50 | $1.14 | $1.11 |
Summary_of_Compensation_Expens
Summary of Compensation Expense Recognized (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $4,392 | $2,634 | $4,349 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 4,292 | 2,524 | 4,118 |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $100 | $110 | $231 |
Other_Net_Additional_Informati
Other, Net - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Other Non Operating Income Expense [Line Items] | |||
Non-operating income | $4.30 | $3 | $2.80 |
Non-operating expenses | $9.10 | $8.20 | $6.70 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||||
Feb. 01, 2012 | Mar. 27, 2002 | Mar. 31, 2002 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Facility | Facility | Facility | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Operating lease, rent expense net of sublease income | $119,800,000 | $92,900,000 | $75,100,000 | ||||
Number of facilities for sale and leaseback | 3 | 3 | |||||
Number of facility reacquired under sale-leaseback transaction | 1 | ||||||
Remaining lease payment term | 15 years | ||||||
Sale-leaseback transaction, renewal option period | 5 years | 10 years | |||||
Capital lease obligation | 12,448,000 | 12,330,000 | 14,100,000 | ||||
Total obligation as guarantor on lease | 1,200,000 | ||||||
Subleased rentals | 1,000,000 | ||||||
Guarantee obligation period | 4 years | ||||||
Sale-Leaseback Capital Lease | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Capital lease obligation | $11,900,000 | ||||||
Minimum | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Operating leases, expiration year | 2015 | ||||||
Maximum | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Operating leases, expiration year | 2027 |
Future_Minimum_Lease_Commitmen
Future Minimum Lease Commitments Net of Sublease Income (Detail) (USD $) | Jan. 03, 2015 |
In Thousands, unless otherwise specified | |
Operating Leased Assets [Line Items] | |
2015 | $100,966 |
2016 | 85,186 |
2017 | 75,917 |
2018 | 65,634 |
2019 | 58,020 |
Thereafter | 195,595 |
Total | $581,318 |
Income_Loss_from_Operations_be
Income (Loss) from Operations before Income Taxes Taxed within following Jurisdictions (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | |||
United States | ($138,001) | ($11,168) | ($15,621) |
Foreign | -9,961 | 866 | -4,403 |
Income (loss) from continuing operations before income taxes | ($147,962) | ($10,302) | ($20,024) |
Income_Tax_Provision_Benefit_D
Income Tax Provision (Benefit) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Federal: | |||
Current provision (benefit) | ($9,574) | $13,944 | $5,420 |
Deferred provision (benefit) | -34,567 | -18,141 | -9,802 |
Total | -44,141 | -4,197 | -4,382 |
State: | |||
Current provision (benefit) | 1,218 | 3,707 | 1,884 |
Deferred provision (benefit) | -8,118 | -3,644 | -2,037 |
Total | -6,900 | 63 | -153 |
Foreign: | |||
Current provision (benefit) | 4,267 | 1,963 | 49 |
Deferred provision (benefit) | -6,902 | -1,774 | -1,192 |
Total | -2,635 | 189 | -1,143 |
Income tax provision (benefit) | ($53,676) | ($3,945) | ($5,678) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Income Tax [Line Items] | ||||
Statutory federal income tax rate | 35.00% | |||
Acquired non-current deferred tax asset | $8,700,000 | |||
Expected future tax liability associated with non-deductible, identified, intangible assets that were recorded during Merger, effective tax rate | 39.60% | |||
Unrecognized tax benefits | 408,000 | 706,000 | 1,953,000 | 1,815,000 |
Unrecognized tax benefits that, if recognized, would impact effective tax rate | 100,000 | |||
Unrecognized tax benefits related to timing differences | 300,000 | |||
Minimum | ||||
Income Tax [Line Items] | ||||
Net operating loss, expiration year | 2015 | |||
Maximum | ||||
Income Tax [Line Items] | ||||
Net operating loss, expiration year | 2030 | |||
Federal | ||||
Income Tax [Line Items] | ||||
Net operating loss available for tax purposes | 1,600,000 | |||
State | ||||
Income Tax [Line Items] | ||||
Net operating loss available for tax purposes | $25,000,000 |
Differences_between_Amount_of_
Differences between Amount of Income Taxes Computed by Applying Applicable United States Statutory Federal Income Tax Rate and Pretax Income (Loss) (Detail) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | ||
Schedule of Effective Tax Rate Reconciliation [Line Items] | |||||
Income tax provision (benefit) computed at the federal statutory rate | ($51,787) | ($3,608) | ($7,008) | ||
State income taxes, net of federal income tax provision (benefit) | -4,485 | 676 | -100 | ||
Benefit of lower foreign rate | 782 | -84 | 395 | ||
Permanent differences | 489 | 652 | 437 | ||
Debt issuance costs | -425 | -244 | -221 | ||
Non-deductible transaction costs | 1,375 | 566 | 430 | ||
Tax settlements and other adjustments to uncertain tax positions | -1,542 | [1] | 138 | [1] | |
Increase (decrease) in valuation allowance | -192 | -281 | 132 | ||
Other | 567 | -80 | 119 | ||
Income tax provision (benefit) | ($53,676) | ($3,945) | ($5,678) | ||
[1] | The amount for the year ended December 28, 2013 reflects the lapse of uncertain tax positions for three tax years due to the settlement of an IRS audit during that year. |
Amounts_Related_to_Deferred_In
Amounts Related to Deferred Income Taxes (Detail) (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets (liabilities): | ||
Current | $26,802 | $15,719 |
Noncurrent | -291,106 | -270,576 |
Net deferred tax assets (liabilities) | ($264,304) | ($254,857) |
Tax_Effects_of_Significant_Tem
Tax Effects of Significant Temporary Differences that Comprise Deferred Tax Assets and Liabilities (Detail) (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Accrued expenses and liabilities | $19,473 | $8,686 |
Net operating loss carry-forwards | 1,691 | 1,233 |
Employee benefits | 11,455 | 9,622 |
Inventory cost capitalization | 11,805 | 6,359 |
Other assets | -1,384 | -925 |
Other | 5,094 | 5,214 |
Gross deferred tax assets | 48,134 | 30,189 |
Less: Deferred tax valuation allowances | -533 | -750 |
Net deferred tax assets | 47,601 | 29,439 |
Deferred tax liabilities: | ||
Depreciation and amortization of intangibles | -310,981 | -283,033 |
Other comprehensive income | -244 | |
Other | -680 | -1,263 |
Gross deferred tax liabilities | -311,905 | -284,296 |
Net deferred tax assets (liabilities) | ($264,304) | ($254,857) |
Reconciliation_of_Beginning_an
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Income Tax Contingency [Line Items] | |||
Beginning balance | $706 | $1,953 | $1,815 |
(Reductions) additions based on tax positions related to the current year, net | -298 | -688 | 138 |
Reductions for lapse in statute of limitations | -559 | ||
Ending balance | $408 | $706 | $1,953 |
Stockholders_Equity_Additional
Stockholder's Equity - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | Jan. 31, 2014 | Nov. 30, 2012 | 28-May-10 | |
Stockholders Equity [Line Items] | ||||||
Additional paid-in capital | $813,364,000 | $758,972,000 | ||||
Authorized share capital | 10 | |||||
Common stock, shares authorized | 1,000 | 1,000 | ||||
Common stock, par value | $0.01 | $0.01 | ||||
Unrealized gain (loss) on rabbi trust assets, net of income tax provision (benefit) | 0 | 174,000 | 138,000 | |||
Gain (losses) resulting from foreign currency translation | -28,800,000 | -9,100,000 | ||||
American Tire Distributors Holdings, Inc. | ||||||
Stockholders Equity [Line Items] | ||||||
Percentage of ownership interest owned by Accelerated Holding Corp. | 100.00% | |||||
TPG and certain co-investors | ||||||
Stockholders Equity [Line Items] | ||||||
Additional paid-in capital | 50,000,000 | 60,000,000 | 675,400,000 | |||
Adjustment to additional paid-in capital | 33,300,000 | 50,000,000 | ||||
Board and Management | ||||||
Stockholders Equity [Line Items] | ||||||
Additional paid-in capital | $8,700,000 | $8,700,000 |
Related_Party_Transaction_Addi
Related Party Transaction - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | Jan. 31, 2014 | |
Related Party Transaction [Line Items] | ||||
Transaction and monitoring fee agreement, monitoring fee percentage | 2.00% | |||
Additional fees for equity financing and acquisition transaction of total transaction value, percentage | 1.00% | |||
Transaction and monitoring fee agreement, aggregate termination fee | $12,500,000 | |||
Percentage of ownership | 5.00% | |||
Management fees | 19,886,000 | 5,753,000 | 7,446,000 | |
Hercules | ||||
Related Party Transaction [Line Items] | ||||
Percentage of ownership | 100.00% | |||
Transaction fee | 13,500,000 | |||
Management Fee | ||||
Related Party Transaction [Line Items] | ||||
Management fees | $18,800,000 | $4,000,000 | $5,300,000 |
Net_Sales_by_Geographic_Area_D
Net Sales by Geographic Area (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Segment Reporting Information [Line Items] | |||
Net sales | $5,030,698 | $3,836,569 | $3,454,564 |
United States | |||
Segment Reporting Information [Line Items] | |||
Net sales | 4,387,245 | 3,500,970 | 3,442,481 |
Canada | |||
Segment Reporting Information [Line Items] | |||
Net sales | $643,453 | $335,599 | $12,083 |
LongLived_Assets_by_Geographic
Long-Lived Assets by Geographic Area (Detail) (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $220,466 | $147,856 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 201,459 | 141,055 |
Canada | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $19,007 | $6,801 |
Discontinued_Operations_Additi
Discontinued Operations - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | |
Jul. 31, 2014 | Oct. 04, 2014 | Jan. 03, 2015 | Jul. 31, 2014 | |
Discontinued Operations [Line Items] | ||||
Pre-tax loss on sale of discontinued operations | ($346,000) | |||
Terry's Tire Town Holdings, Inc. | ||||
Discontinued Operations [Line Items] | ||||
Proceeds from disposal of business | 3,900,000 | |||
Carrying value of commercial and retread businesses | 4,000,000 | 4,000,000 | ||
Pre-tax loss on sale of discontinued operations | -300,000 | |||
Post-closing working capital adjustments | $200,000 |
Components_of_Income_Loss_from
Components of Income (Loss) from Discontinued Operations, Net of Tax (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Jan. 03, 2015 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Net sales | $7,502 |
Income (loss) from operations before income taxes | -165 |
Loss on sale before income taxes | -346 |
Income tax provision (benefit) | -198 |
Income (loss) from discontinued operations, net of tax | ($313) |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | |
Jan. 03, 2015 | 28-May-10 | Feb. 25, 2015 | |
Subsequent Event [Line Items] | |||
Aggregate principal amount senior note | $714,175,000 | ||
Redemption of senior subordinate notes, value | 246,900,000 | ||
Additional fees for equity financing and acquisition transaction of total transaction value, percentage | 1.00% | ||
Senior Subordinated Notes | |||
Subsequent Event [Line Items] | |||
Aggregate principal amount senior note | 200,000,000 | ||
Debt instrument, fixed interest rate | 11.50% | ||
Debt instrument maturity year | 2018 | ||
Debt instrument interest payment term | Interest on the Initial Subordinated Notes is payable semi-annually in arrears on June 1 and December 1 of each year, commencing on December 1, 2010. | ||
Debt instrument first interest payment date | 1-Dec-10 | ||
Redemption notice period, lower limit | 30 days | ||
Redemption notice period, upper limit | 60 days | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Annual management fees | 8,000,000 | ||
Additional fees for equity financing and acquisition transaction of total transaction value, percentage | 1.00% | ||
Transaction fee | 0 | ||
Subsequent Event | TPG | |||
Subsequent Event [Line Items] | |||
Payment upon an initial public offering of ATDI or its affiliated entities, sale of all or substantially all of ATDI's assets or a change of control | 6,250,000 | ||
Subsequent Event | Ares | |||
Subsequent Event [Line Items] | |||
Payment upon an initial public offering of ATDI or its affiliated entities, sale of all or substantially all of ATDI's assets or a change of control | 6,250,000 | ||
Subsequent Event | 10 1/4% Senior Subordinate Notes | |||
Subsequent Event [Line Items] | |||
Aggregate principal amount senior note | 855,000,000 | ||
Debt instrument, fixed interest rate | 10.25% | ||
Debt instrument maturity year | 2022 | ||
Debt instrument interest payment term | Interest on the 10 1/4% Subordinated Notes is payable semi-annually in arrears on March 1 and September 1 of each year, beginning on September 1, 2015. The 10 1/4% Subordinated Notes will mature on March 1, 2022. | ||
Debt instrument first interest payment date | 1-Sep-15 | ||
Debt instrument, maturity date | 1-Mar-22 | ||
Debt redemption price as percentage of principal amount | 100.00% | ||
Redemption notice period, lower limit | 30 days | ||
Redemption notice period, upper limit | 60 days | ||
Subsequent Event | 10 1/4% Senior Subordinate Notes | Between March 1, 2018 and February 28, 2019 | |||
Subsequent Event [Line Items] | |||
Debt redemption price as percentage of principal amount | 105.13% | ||
Subsequent Event | 10 1/4% Senior Subordinate Notes | Between March 1, 2019 and February 28, 2020 | |||
Subsequent Event [Line Items] | |||
Debt redemption price as percentage of principal amount | 102.56% | ||
Subsequent Event | 10 1/4% Senior Subordinate Notes | Between March 1, 2020 and thereafter | |||
Subsequent Event [Line Items] | |||
Debt redemption price as percentage of principal amount | 100.00% | ||
Subsequent Event | 10 1/4% Senior Subordinate Notes | Prior to March 1, 2018, at its option, on one or more occasions | |||
Subsequent Event [Line Items] | |||
Debt redemption price as percentage of principal amount | 110.25% | ||
Debt instrument early redemption percent company may redeem aggregate principal amount | 40.00% | ||
Debt Instrument, redemption, description | Prior to March 1, 2018, ATDI may, at its option, on one or more occasions, redeem up to 40.0% of the aggregate principal amount of the 10 1b4% Subordinated Notes issued at a redemption price equal to 110.25% of the aggregate principal amount thereof, plus accrued and unpaid interest, to, but not including, the redemption date, with the net cash proceeds of one or more equity offerings; provided that: (1) At least 50% of the sum of the aggregate principal amount of the 10 1b4% Subordinated Notes remains outstanding immediately after the occurrence of each such redemption; and (2) Each such redemption occurs within 120 days of the date of closing of the related equity offering. | ||
Debt Instrument, each redemption period after days of the date of closing of the related equity offering | 120 days | ||
Subsequent Event | 10 1/4% Senior Subordinate Notes | Prior to March 1, 2018, at its option, on one or more occasions | Minimum | |||
Subsequent Event [Line Items] | |||
Debt instrument early redemption percentage of principal amount required outstanding immediately after redemption | 50.00% | ||
Subsequent Event | Senior Subordinated Notes | Redeemed debt | |||
Subsequent Event [Line Items] | |||
Aggregate principal amount senior note | 425,000,000 | ||
Debt instrument, fixed interest rate | 11.50% | ||
Debt redemption price as percentage of principal amount | 102.00% | ||
Redemption of senior subordinate notes, value | $444,900,000 |
Summary_of_Valuation_and_Quali
Summary of Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |||
Allowance for Doubtful Accounts | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance Beginning of Year | $2,169 | $950 | $696 | |||
Additions, Charged to Costs and Expenses | 1,489 | 1,795 | 1,996 | |||
Additions, Charged to Other Accounts | 0 | 0 | 0 | |||
Deductions | -745 | [1] | -491 | [1] | -1,740 | [1] |
Currency Translation | -310 | -85 | -2 | |||
Balance End of Year | 2,603 | 2,169 | 950 | |||
Acquisition exit cost reserves | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance Beginning of Year | 1,210 | [2] | 1,839 | [2] | 3,865 | [2] |
Additions, Charged to Costs and Expenses | 10,924 | [2] | 636 | [2] | 528 | [2] |
Additions, Charged to Other Accounts | 0 | [2] | 0 | [2] | 0 | [2] |
Deductions | -5,375 | [2] | -1,094 | [2] | -2,549 | [2] |
Currency Translation | -306 | [2] | -171 | [2] | -5 | [2] |
Balance End of Year | 6,453 | [2] | 1,210 | [2] | 1,839 | [2] |
Inventory reserves | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance Beginning of Year | 143 | 410 | 514 | |||
Additions, Charged to Costs and Expenses | 3,602 | 611 | 419 | |||
Additions, Charged to Other Accounts | 0 | 0 | 0 | |||
Deductions | -709 | -616 | -502 | |||
Currency Translation | -306 | -262 | -21 | |||
Balance End of Year | 2,730 | 143 | 410 | |||
Sales returns and allowances | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance Beginning of Year | 16,544 | 13,167 | 11,682 | |||
Additions, Charged to Costs and Expenses | 7,562 | 4,185 | 3,524 | |||
Additions, Charged to Other Accounts | 0 | 0 | 0 | |||
Deductions | -4,379 | -753 | -2,036 | |||
Currency Translation | -121 | -55 | -3 | |||
Balance End of Year | 19,606 | 16,544 | 13,167 | |||
Valuation allowance on deferred tax assets | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance Beginning of Year | 750 | 762 | 840 | |||
Additions, Charged to Other Accounts | 0 | 0 | 0 | |||
Deductions | -217 | -12 | -78 | |||
Balance End of Year | $533 | $750 | $762 | |||
[1] | Accounts written off during the year, net of recoveries. | |||||
[2] | Amounts represent facilities closing cost of acquired distribution centers due to existing distribution centers being located in close proximity to the acquired distribution facilities. |