Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 20, 2017 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Vitamin Shoppe, Inc. | |
Entity Central Index Key | 1,360,530 | |
Current Fiscal Year End Date | --12-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 23,977,358 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 1,904 | $ 2,833 |
Accounts receivable, net of allowance of $1,934 and $1,061 in 2017 and 2016, respectively | 2,922 | 7,367 |
Inventories | 247,213 | 241,736 |
Prepaid expenses and other current assets | 39,772 | 33,717 |
Total current assets | 291,811 | 285,653 |
Property and equipment, net of accumulated depreciation and amortization of $338,394 and $305,777 in 2017 and 2016, respectively | 154,496 | 139,132 |
Goodwill | 0 | 210,633 |
Other intangibles, net | 19,579 | 79,489 |
Deferred taxes | 50,574 | 16,847 |
Other long-term assets | 2,550 | 2,430 |
Total assets | 519,010 | 734,184 |
Current liabilities: | ||
Revolving credit facility | 12,000 | 11,000 |
Accounts payable | 63,591 | 65,606 |
Accrued expenses and other current liabilities | 65,508 | 57,499 |
Total current liabilities | 141,099 | 134,105 |
Convertible notes, net | 125,013 | 120,874 |
Deferred rent | 40,092 | 37,489 |
Other long-term liabilities | 2,030 | 1,720 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value; 250,000,000 shares authorized and no shares issued and outstanding at September 30, 2017 and December 31, 2016 | 0 | 0 |
Common stock, $0.01 par value; 400,000,000 shares authorized, 24,167,733 shares issued and 23,972,519 shares outstanding at September 30, 2017, and 23,585,240 shares issued and 23,424,055 shares outstanding at December 31, 2016 | 242 | 236 |
Additional paid-in capital | 86,639 | 80,727 |
Treasury stock, at cost; 195,214 shares at September 30, 2017 and 161,185 shares at December 31, 2016 | (6,995) | (6,430) |
Retained earnings | 130,890 | 365,463 |
Total stockholders’ equity | 210,776 | 439,996 |
Total liabilities and stockholders’ equity | $ 519,010 | $ 734,184 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 1,934 | $ 1,061 |
Accumulated depreciation and amortization, property and equipment | $ 338,394 | $ 305,777 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 24,167,733 | 23,585,240 |
Common stock, shares outstanding (in shares) | 23,972,519 | 23,424,055 |
Treasury stock, shares (in shares) | 195,214 | 161,185 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | |
Income Statement [Abstract] | ||||
Net sales | $ 288,186 | $ 314,887 | $ 909,924 | $ 984,378 |
Cost of goods sold | 202,062 | 212,762 | 638,371 | 658,182 |
Gross profit | 86,124 | 102,125 | 271,553 | 326,196 |
Selling, general and administrative expenses | 88,459 | 81,655 | 258,443 | 257,522 |
Goodwill, tradename and store fixed-asset impairment charges | 106,000 | 197 | 274,090 | 415 |
Income (loss) from operations | (108,335) | 20,273 | (260,980) | 68,259 |
Interest expense, net | 2,426 | 2,363 | 7,212 | 6,977 |
Income (loss) before provision (benefit) for income taxes | (110,761) | 17,910 | (268,192) | 61,282 |
Provision (benefit) for income taxes | (24,611) | 6,547 | (33,619) | 24,704 |
Net income (loss) | $ (86,150) | $ 11,363 | $ (234,573) | $ 36,578 |
Weighted average common shares outstanding | ||||
Basic (in shares) | 23,152,645 | 23,578,334 | 23,070,781 | 24,048,201 |
Diluted (in shares) | 23,152,645 | 23,769,726 | 23,070,781 | 24,239,254 |
Net income (loss) per common share | ||||
Basic (in dollars per share) | $ (3.72) | $ 0.48 | $ (10.17) | $ 1.52 |
Diluted (in dollars per share) | $ (3.72) | $ 0.48 | $ (10.17) | $ 1.51 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (86,150) | $ 11,363 | $ (234,573) | $ 36,578 |
Other comprehensive income: | ||||
Foreign currency translation adjustments | 0 | 0 | 0 | 60 |
Other comprehensive income | 0 | 0 | 0 | 60 |
Comprehensive income (loss) | $ (86,150) | $ 11,363 | $ (234,573) | $ 36,638 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 24, 2016 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (234,573) | $ 36,578 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization of fixed and intangible assets | 23,548 | 28,812 |
Impairment charge on goodwill | 210,633 | 0 |
Impairment charge on tradename | 59,405 | 0 |
Impairment charges on fixed assets | 5,872 | 415 |
Amortization of deferred financing fees | 678 | 708 |
Amortization of debt discount on convertible notes | 3,569 | 3,434 |
Deferred income taxes | (33,727) | 1,309 |
Deferred rent | (1,903) | (2,340) |
Equity compensation expense | 4,137 | 4,706 |
Issuance of shares for services rendered | 0 | 333 |
Tax benefits on exercises of equity awards | 895 | 714 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 4,445 | 479 |
Inventories | 1,759 | 4,506 |
Prepaid expenses and other current assets | (6,056) | (4,407) |
Other long-term assets | 50 | 106 |
Accounts payable | (287) | 11,337 |
Accrued expenses and other current liabilities | 3,589 | (9,442) |
Other long-term liabilities | 939 | 840 |
Net cash provided by operating activities | 42,973 | 78,088 |
Cash flows from investing activities: | ||
Capital expenditures | (43,314) | (31,228) |
Trademarks and other intangible assets | (313) | (221) |
Net cash used in investing activities | (43,627) | (31,449) |
Cash flows from financing activities: | ||
Borrowings under revolving credit facility | 90,000 | 51,000 |
Repayments of borrowings under revolving credit facility | (89,000) | (53,000) |
Bank overdraft | (1,841) | (377) |
Proceeds from exercises of common stock options | 1,511 | 90 |
Issuance of shares under employee stock purchase plan | 270 | 536 |
Tax benefits on exercises of equity awards | 0 | (714) |
Purchases of treasury stock | (565) | (1,175) |
Purchases of shares under Share Repurchase Programs | 0 | (56,011) |
Other financing activities | (681) | (125) |
Net cash used in financing activities | (306) | (59,776) |
Effect of exchange rate changes on cash and cash equivalents | 31 | 56 |
Net decrease in cash and cash equivalents | (929) | (13,081) |
Cash and cash equivalents beginning of period | 2,833 | 15,104 |
Cash and cash equivalents end of period | 1,904 | 2,023 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 2,110 | 1,879 |
Income taxes paid | 6,550 | 30,968 |
Supplemental disclosures of non-cash investing activities: | ||
Liability for purchases of property and equipment | 8,577 | 4,327 |
Assets acquired under capital leases | 891 | 1,589 |
Assets acquired under tenant incentives | $ 2,986 | $ 0 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Vitamin Shoppe, Inc. (“ VSI ”), is incorporated in the State of Delaware, and through its wholly-owned subsidiary, Vitamin Shoppe Industries Inc. (“Subsidiary” or “Industries” together with VSI, the “Company”), is an omni-channel specialty retailer and contract manufacturer of nutritional products. Sales of both national brands and our own brands of vitamins, minerals, herbs, specialty supplements, sports nutrition and other health and wellness products (“VMS products”) are made through VSI-operated retail stores and the internet to customers located primarily in the United States. The Company manufactures products for the VSI product assortment as well as sales to third parties. The consolidated financial statements as of September 30, 2017 and September 24, 2016 are unaudited. The consolidated balance sheet as of December 31, 2016 was derived from our audited financial statements. All intercompany transactions and balances have been eliminated in consolidation. In addition, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted pursuant to such rules and regulations. The interim financial statements reflect all adjustments, which are, in the opinion of management, necessary for a fair presentation in conformity with GAAP. The interim financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's annual report on Form 10-K for the fiscal year ended December 31, 2016 , as filed with the Securities and Exchange Commission on March 1, 2017 (the “Fiscal 2016 Form 10-K”). The results of operations for the interim periods should not be considered indicative of results to be expected for the full year. The Company's fiscal year ends on the last Saturday in December. As used herein, the term "Fiscal Year" or "Fiscal" refers to a 52-week or 53-week period, ending on the last Saturday in December. Fiscal 2016 was a 53-week fiscal year. The results for the three and nine months ended September 30, 2017 and September 24, 2016 are each based on 13-week and 39-week periods, respectively. 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, and revenue and expenses during the reporting period. Actual results could differ from those estimates. Except as noted below, the Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on its results of operations, financial condition, or cash flows, based on current information. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers (Topic 606). Under ASU 2014-09, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB deferred the effective date of ASU 2014-09 by one year. ASU 2014-09 will be effective for annual reporting periods beginning after December 15, 2017 for public companies and early adoption of ASU 2014-09 is permitted for public companies for annual reporting periods beginning after December 15, 2016. The Company is still in the process of completing its assessment of each performance obligation, such as the customer loyalty program and customer incentives, contract assets and contract liabilities, and the related disclosure requirements. Based on the preliminary assessment which is anticipated to be complete by fiscal year end, the Company does not expect this guidance will have a material impact to the consolidated financial statements. The Company expects to apply the modified retrospective method for the transition to ASU 2014-09. In February 2016, the FASB issued Accounting Standards Update No. 2016-02 (“ASU 2016-02”), Leases (Topic 842). ASU 2016-02 was issued by the FASB to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The main difference between previous GAAP and Topic 842 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. ASU 2016-02 will require modified retrospective application at the beginning of our first quarter of Fiscal 2019, but permits adoption in an earlier period. Although the Company is still evaluating ASU 2016-02, the Company currently expects this guidance will not have a material impact on its results of operations, however, this guidance will result in a significant increase to long-term assets and liabilities on the Company's balance sheet given the Company has a significant number of leases. The Company is also in the process of identifying changes to its business processes, systems and controls to support the adoption of ASU 2016-02 in Fiscal 2019. In March 2016, the FASB issued Accounting Standards Update No. 2016-09 (“ASU 2016-09”), Compensation-Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 addresses simplification of several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for public companies for annual reporting periods beginning after December 15, 2016, and interim periods within those fiscal years. The Company adopted ASU 2016-09 prospectively in the first quarter of Fiscal 2017. All excess tax benefits and deficiencies in the current and future periods will be recognized in income tax expense in the Company's consolidated statements of operations in the reporting period in which they occur. This will result in increased volatility in the Company's effective tax rate. For the three and nine month periods ended September 30, 2017, the Company recognized discrete tax expense related to the excess tax deficiencies from stock-based compensation of $0.2 million and $0.9 million , respectively. In January 2017, the FASB issued Accounting Standards Update No. 2017-04 (“ASU 2017-04”), Intangibles - Goodwill and Other - Simplifying the Test for Goodwill Impairment (Topic 350). Under ASU 2017-04, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of the reporting unit with its carrying amount and should recognize an impairment charge for the amount by which that carrying amount exceeds the reporting unit's fair value. The loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. ASU 2017-04 will be effective for the Company for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company elected to early adopt this guidance for interim and annual goodwill impairment tests performed on testing dates after January 1, 2017. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The components of inventories are as follows (in thousands): September 30, 2017 December 31, 2016 Finished goods $ 233,359 $ 222,046 Work-in-process 5,842 7,566 Raw materials 8,012 12,124 $ 247,213 $ 241,736 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following table discloses the carrying value of all intangible assets (in thousands): September 30, 2017 December 31, 2016 Gross Carrying Amount Accumulated Amortization Accumulated Impairment Charges (1) Net Gross Carrying Amount Accumulated Amortization Accumulated Impairment Charges (1) Net Intangible assets Goodwill $ 243,269 $ — $ 243,269 $ — $ 243,269 $ — $ 32,636 $ 210,633 Tradenames – Indefinite-lived 68,405 — 59,405 9,000 68,405 — — 68,405 Brands 10,000 1,852 — 8,148 10,000 1,435 — 8,565 Customer relationships 7,500 906 6,594 — 7,500 906 6,594 — Tradenames – Definite-lived 5,277 3,279 — 1,998 4,964 3,073 — 1,891 Software 1,300 867 — 433 1,300 672 — 628 $ 335,751 $ 6,904 $ 309,268 $ 19,579 $ 335,438 $ 6,086 $ 39,230 $ 290,122 (1) During the third quarter of Fiscal 2017, the Company experienced another significant reduction to its market capitalization. As a result, the Company concluded that an impairment trigger occurred for the retail reporting unit and therefore interim impairment tests of goodwill and other intangible assets were performed. The Company also had recently updated its long-range plan. The results of the interim goodwill and other intangible assets impairment tests indicated that the carrying value of the Vitamin Shoppe tradename exceeded its fair value and that the carrying value of the retail reporting unit exceeded its fair value. The Company recorded an impairment charge on the Vitamin Shoppe tradename of $59.4 million during the third quarter of Fiscal 2017. The Company also recorded an impairment charge for the remaining goodwill of its retail segment of $46.3 million during the third quarter of Fiscal 2017, which is not deductible for income tax purposes. During the second quarter of Fiscal 2017, the Company had experienced a significant reduction to its market capitalization. Additionally, as a result of changed market conditions and the Company's updated initiatives for the second half of Fiscal 2017, the Company revised the outlook for Fiscal 2017 and updated its long-range plan to reflect its operations in this increasingly competitive environment. Based on these factors, the Company concluded that an impairment trigger occurred for the retail reporting unit and therefore interim impairment tests of goodwill and other intangible assets were performed. The results of the interim goodwill impairment test indicated that the carrying value of the retail reporting unit exceeded its fair value, and in accordance with the early adoption of ASU 2017-04, Intangibles - Goodwill and Other - Simplifying the Test for Goodwill Impairment, the Company recorded an impairment charge on the goodwill of its retail segment of $164.3 million during the second quarter of Fiscal 2017, of which $130.9 million is not deductible for income tax purposes. In the fourth quarter of Fiscal 2016, the Company recorded impairment charges on goodwill of $32.6 million and on the customer relationships intangible asset of the manufacturing segment of $6.6 million . Total goodwill impairment charges for the nine months ended September 30, 2017 were $210.6 million , of which $177.2 million is not deductible for income tax purposes, as reflected in the effective tax rate benefit for the nine months ended September 30, 2017 of 12.5% . In addition, the tradename impairment charge of $59.4 million and the tax deductible portion of the goodwill impairment charges of $33.4 million resulted in an increase to the Company's net deferred tax assets of $35.8 million for the nine months ended September 30, 2017. For indefinite-lived tradenames, the Company utilizes the royalty relief method in its quantitative evaluations. Under the royalty relief method, a royalty rate is determined based on comparable licensing arrangements which is applied to the revenue projections for the applicable indefinite-lived tradename and the fair value is calculated using a discounted cash flow analysis. Cash flows are discounted using an internally derived weighted average cost of capital which reflects the costs of borrowing as well as the associated risk. For goodwill, the Company's quantitative impairment tests involve calculating the fair value of each reporting unit using the discounted cash flow analysis method along with the market multiples method which is used for additional validation of the fair value calculated. These valuation methods require certain assumptions and estimates be made by the Company regarding certain industry trends and future profitability. It is the Company's policy to conduct goodwill impairment testing from information based on current business projections, which include projected future revenues and cash flows. The cash flows utilized in the discounted cash flow analysis are based on five-year financial forecasts developed internally by management. Cash flows for each reporting unit are discounted using an internally derived weighted average cost of capital which reflects the costs of borrowing for the funding of each unit as well as the risk associated with the units themselves. These measures of fair value for intangibles, and related inputs, are considered Level 3 measures under the fair value hierarchy. The useful lives of the Company’s definite-lived intangible assets are between 5 to 18 years. The expected amortization expense on definite-lived intangible assets on the Company’s consolidated balance sheet at September 30, 2017 , is as follows (in thousands): Remainder of Fiscal 2017 $ 270 Fiscal 2018 1,099 Fiscal 2019 947 Fiscal 2020 839 Fiscal 2021 839 Thereafter 6,585 $ 10,579 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 9 Months Ended |
Sep. 30, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following (in thousands): September 30, 2017 December 31, 2016 Accrued salaries and related expenses $ 12,552 $ 13,861 Accrued fixed asset additions 8,198 4,067 Sales tax payable and related expenses 7,292 7,669 Deferred sales 5,353 5,209 Other accrued expenses 32,113 26,693 $ 65,508 $ 57,499 |
Credit Arrangements
Credit Arrangements | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Credit Arrangements | Credit Arrangements Convertible Senior Notes due 2020 On December 9, 2015, VSI issued $143.8 million of its 2.25% Convertible Senior Notes due 2020 (the “Convertible Notes”). The Convertible Notes are senior unsecured obligations of VSI. Interest on the Convertible Notes is payable on June 1 and December 1 of each year, commencing on June 1, 2016 until their maturity date of December 1, 2020. The Company may not redeem the Convertible Notes prior to the maturity date. Prior to July 1, 2020, the Convertible Notes will be convertible only under certain circumstances. The Convertible Notes are convertible at an initial conversion rate of 25.1625 shares of the Company’s common stock per $1,000 principal amount of the Convertible Notes, which is equivalent to a conversion price of approximately $39.74 . The conversion rate is subject to adjustment in some events but will not be adjusted for any accrued and unpaid interest. In addition, following certain corporate events that occur prior to the maturity date, the Company is required to increase, in certain circumstances, the conversion rate for a holder who elects to convert its Convertible Notes in connection with such a corporate event including customary conversion rate adjustments in connection with a “make-whole fundamental change” as defined. Upon conversion, the Company may satisfy its conversion obligation by paying or delivering, as applicable, cash, shares of its common stock or a combination of cash and shares of its common stock, at its election. The Company allocated the principal amount of the Convertible Notes between its liability and equity components (see table below). The carrying amount of the liability component was determined by measuring the fair value of a similar debt instrument of similar credit quality and maturity that did not have the conversion feature. The carrying amount of the equity component, representing the embedded conversion option, was determined by deducting the fair value of the liability component from the principal amount of the Convertible Notes as a whole. The equity component was recorded to additional paid-in capital and is not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the Convertible Notes over the carrying amount of the liability component was recorded as a debt discount, and is being amortized to interest expense using an effective interest rate of 3.8% over the term of the Convertible Notes. The Company allocated the total amount of transaction costs incurred to the liability and equity components using the same proportions as the proceeds from the Convertible Notes. Transaction costs attributable to the liability component were recorded as a direct deduction from the liability component of the Convertible Notes, and are being amortized to interest expense using the effective interest method through the maturity date. Transaction costs attributable to the equity component were netted with the equity component of the Convertible Notes in additional paid-in capital. The Convertible Notes consist of the following components (in thousands): September 30, 2017 December 31, 2016 Liability component: Principal $ 143,750 $ 143,750 Conversion feature (24,800 ) (24,800 ) Liability portion of debt issuance costs (3,802 ) (3,802 ) Amortization 9,865 5,726 Net carrying amount $ 125,013 $ 120,874 Equity component: Conversion feature $ 24,800 $ 24,800 Equity portion of debt issuance costs (793 ) (793 ) Deferred taxes 941 941 Net carrying amount $ 24,948 $ 24,948 In connection with the issuance of the Convertible Notes, the Company entered into convertible note hedge transactions for which it paid an aggregate $26.4 million . In addition, the Company sold warrants for which it received aggregate proceeds of $13.0 million . The convertible note hedge transactions are expected generally to reduce potential dilution of the Company’s common stock upon any conversion of notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted notes. However, the warrant transaction could separately have a dilutive effect to the extent that the market value per share of the Company’s common stock exceeds the applicable strike price of the warrant transactions, which is approximately $52.99 at inception. As these transactions meet certain accounting criteria, the convertible note hedge and warrant transactions are recorded in stockholders’ equity, are not accounted for as derivatives and are not remeasured each reporting period. The net proceeds from the Convertible Notes and related transactions of $125.7 million , net of commissions and offering costs of $4.6 million , were used to repurchase shares of the Company’s common stock under the Company’s share repurchase programs. Revolving Credit Facility As of September 30, 2017 and December 31, 2016 , the Company had $12.0 million and $11.0 million of borrowings outstanding on its Revolving Credit Facility (the "Revolving Credit Facility"), respectively. In May 2017, the Company executed an amendment to its Revolving Credit Facility, which provides for an extension of the maturity date to May 9, 2022, provided that the maturity date would be any day on or after September 2, 2020 only if the Company did not on any such day have enough liquidity to retire its Convertible Notes then outstanding, if any. The amendment also provides for a reduction of the interest rate under the Revolving Credit Facility, as noted below. Subject to the terms of the Revolving Credit Facility, the Company may borrow up to $90.0 million , with a Company option to increase the facility up to a total of $150.0 million . The availability under the Revolving Credit Facility is subject to a borrowing base calculated on the value of certain accounts receivable as well as certain inventory of the Company. The obligations thereunder are secured by a security interest in substantially all of the assets of the Company. Under the Revolving Credit Facility, VSI has guaranteed the Company’s obligations, and Industries and its wholly-owned subsidiaries have each guaranteed the obligations of the other respective entities. The Revolving Credit Facility provides for affirmative and negative covenants affecting the Company. The Revolving Credit Facility restricts, among other things, the Company’s ability to incur indebtedness, create or permit liens on the Company’s assets, declare or pay dividends and make certain other restricted payments, consolidate, merge or recapitalize, sell assets, make certain investments, loans or other advances, enter into transactions with affiliates, change our line of business, and restricts the types of hedging activities the Company can enter into. The largest amount borrowed during the nine months ended September 30, 2017 and September 24, 2016 was $38.0 million and $27.0 million , respectively. The unused available line of credit under the Revolving Credit Facility at September 30, 2017 was $75.2 million . Borrowings under the Revolving Credit Facility accrue interest, at the Company’s option, at the rate per annum based on an “alternative base rate” plus 0.00% , 0.125% or 0.25% or the adjusted Eurodollar rate plus 1.00% , 1.125% or 1.25% , in each case with the highest spread applicable in the event that the average excess collateral availability under the Revolving Credit Facility is less than 33% of the borrowing base availability under the Revolving Credit Facility, the second highest spread applicable in the event that the average excess collateral availability under the Revolving Credit Facility is less than 66% and greater than or equal to 33% of the borrowing base availability under the Revolving Credit Facility and the lowest spread applicable in the event that the average excess collateral availability under the Revolving Credit Facility is greater than or equal to 66% of the borrowing base availability under the Revolving Credit Facility. The weighted average interest rate for the Revolving Credit Facility during the nine months ended September 30, 2017 and September 24, 2016 was 2.18% and 1.75% , respectively. The commitment fee on the undrawn portion of the $90.0 million Revolving Credit Facility is 0.25% per annum. Interest expense, net for the three and nine months ended September 30, 2017 and September 24, 2016 consists of the following (in thousands): Three Months Ended Nine Months Ended September 30, 2017 September 24, 2016 September 30, 2017 September 24, 2016 Amortization of debt discount on Convertible Notes $ 1,201 $ 1,156 $ 3,569 $ 3,434 Interest on Convertible Notes 818 818 2,453 2,455 Amortization of deferred financing fees 220 236 678 708 Interest / fees on the Revolving Credit Facility and other interest 187 153 512 380 Interest expense, net $ 2,426 $ 2,363 $ 7,212 $ 6,977 |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | Stock Based Compensation Equity Incentive Plans – The Company has two equity incentive plans that provide stock based compensation to certain directors, officers, consultants and employees of the Company: the 2006 Stock Option Plan (the “2006 Plan”) and the Vitamin Shoppe 2009 Equity Incentive Plan, as amended and restated effective April 6, 2012 (the “2009 Plan”). As of September 30, 2017 , there were 1,517,878 shares available to grant under both plans which includes 195,214 shares currently held by the Company as treasury stock. The following table summarizes restricted shares for the 2009 Plan as of September 30, 2017 and changes during the nine month period then ended: Number of Unvested Restricted Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2016 372,817 $ 35.20 Granted 577,183 $ 14.04 Vested (86,607 ) $ 42.49 Canceled/forfeited (124,781 ) $ 27.36 Unvested at September 30, 2017 738,612 $ 19.13 The total intrinsic value of restricted shares vested during the nine months ended September 30, 2017 and September 24, 2016 was $1.4 million and $2.7 million , respectively. The following table summarizes stock options for the 2006 Plan and 2009 Plan as of September 30, 2017 and changes during the nine month period then ended: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2016 502,797 $ 25.30 Granted — $ — Exercised (100,000 ) $ 15.11 Canceled/forfeited (88,605 ) $ 27.93 Outstanding at September 30, 2017 314,192 $ 27.79 6.02 $ — Vested or expected to vest at September 30, 2017 304,772 $ 27.79 6.02 Vested and exercisable at September 30, 2017 175,167 $ 27.17 3.97 $ — The total intrinsic value of options exercised during the nine months ended September 30, 2017 was $0.7 million and during the nine months ended September 24, 2016 was $0.1 million . The cash received from options exercised during the nine months ended September 30, 2017 was $1.5 million and during the nine months ended September 24, 2016 was $0.1 million . Stock options were not granted during the nine months ended September 30, 2017 . The weighted-average grant date fair value of stock options during the three and nine months ended September 24, 2016 was $7.07 and $8.21 , respectively. The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: Three Months Ended Nine Months Ended September 24, 2016 September 24, 2016 Expected dividend yield 0.0 % 0.0 % Weighted average expected volatility 31.4 % 32.5 % Weighted average risk-free interest rate 1.0 % 1.2 % Expected holding period 4.00 years 4.00 years The following table summarizes performance share units for the 2009 Plan as of September 30, 2017 and changes during the nine month period then ended: Number of Unvested Performance Share Units Weighted Average Grant Date Fair Value Unvested at December 31, 2016 125,015 $ 30.43 Granted 241,485 $ 19.10 Vested — $ — Canceled/forfeited (78,135 ) $ 24.94 Unvested at September 30, 2017 288,365 $ 22.43 Performance share units granted during the nine months ended September 30, 2017 shall vest on December 28, 2019 if the performance criteria are achieved. Performance share units can vest at a range of 25% to 150% based on the achievement of pre-established performance targets. The following table summarizes restricted share units for the 2009 Plan as of September 30, 2017 and changes during the nine month period then ended: Number of Unvested Weighted Unvested at December 31, 2016 15,390 $ 30.71 Granted 54,078 $ 12.04 Vested (16,530 ) $ 29.89 Canceled/forfeited — $ — Unvested at September 30, 2017 52,938 $ 11.90 The total intrinsic value of restricted share units vested during the nine months ended September 30, 2017 and September 24, 2016 was $0.1 million and $0.3 million , respectively. Compensation expense attributable to stock based compensation for the three and nine months ended September 30, 2017 was approximately $1.4 million and $4.1 million , respectively, and for the three and nine months ended September 24, 2016 was approximately $1.2 million and $4.7 million , respectively. As of September 30, 2017 , the remaining unrecognized stock based compensation expense for non-vested stock options, restricted shares, performance share units and restricted share units to be expensed in future periods is $8.4 million , and the related weighted-average period over which it is expected to be recognized is 1.7 years. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company estimates forfeitures based on its historical forfeiture rate since the inception of granting stock based awards. The estimated value of future forfeitures for stock options, restricted shares, performance share units and restricted share units as of September 30, 2017 is approximately $0.8 million . Treasury Stock – As part of the Company’s equity incentive plans, the Company makes required tax payments on behalf of employees as their restricted shares vest. The Company withholds the number of vested shares having a value on the date of vesting equal to the minimum statutory tax obligation. The shares withheld are recorded as treasury shares. During the nine months ended September 30, 2017 , the Company purchased 34,029 shares in settlement of employees’ tax obligations for a total of $0.6 million . The Company accounts for treasury stock using the cost method. These shares are available to grant under the Company’s equity incentive plans. |
Restructuring Costs
Restructuring Costs | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs Nutri-Force Restructuring During the first quarter of Fiscal 2017, the Company engaged outside consultants to perform an assessment of the operations of Nutri-Force and to assist in the development of initiatives required to improve the performance of this business. The initiatives identified are focused on improving the efficiency of manufacturing processes, eliminating unprofitable SKUs, reducing third party sales, and reducing costs. The implementation of this plan began during the second quarter of Fiscal 2017 and is expected to be substantially completed in Fiscal 2017. Costs incurred for the restructuring of Nutri-Force during the three and nine months ended September 30, 2017 are as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 Inventory obsolescence charges $ (164 ) $ 8,711 Equipment impairment charges — 1,820 Accounts receivable allowance charges (118 ) 1,225 Outside consulting fees 1,430 3,147 Severance and other expenses 528 1,099 $ 1,676 $ 16,002 The inventory and equipment impairment charges are included in cost of goods sold and the accounts receivable allowance charges, outside consulting fees and severance and other expenses are included in selling, general and administrative expenses in the consolidated statements of operations. The Company expects to incur restructuring costs of approximately $17.0 million during Fiscal 2017 related to the turnaround of Nutri-Force. The following table summarizes the activity related to the Company's liabilities for the restructuring of Nutri-Force (in thousands): Balance as of December 31, 2016 $ — Outside consulting fees expense 3,147 Severance and other expense 1,099 Outside consulting fees payments (3,147 ) Severance and other payments (628 ) Balance as of September 30, 2017 $ 471 Closing of Distribution Center In August 2017, the Company announced its intention to close the North Bergen, New Jersey distribution center prior to or by the August 31, 2018 lease expiration. Distribution operations will be transitioned to the Company's other distribution centers. Such transition is expected to be substantially completed by the end of fiscal year 2017. Costs related to this closure, such as severance, inventory related costs and other charges, are estimated to be approximately $4.0 million . Costs incurred related to the closing of the North Bergen, New Jersey distribution center for the three and nine months ended September 30, 2017 are as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 Inventory obsolescence charges $ 2,000 $ 2,000 Acceleration of depreciation 233 233 Severance and other expenses (1) 24 24 $ 2,257 $ 2,257 (1) As of September 30, 2017, there have been no payments of severance and other expenses related to the closing of the North Bergen, New Jersey distribution center. The inventory impairment charges are included in cost of goods sold and the severance and other expenses are included in selling, general and administrative expenses in the consolidated statements of operations. |
Advertising Costs
Advertising Costs | 9 Months Ended |
Sep. 30, 2017 | |
Other Income and Expenses [Abstract] | |
Advertising Costs | Advertising Costs The costs of advertising for online marketing arrangements, direct mail, magazines and radio are expensed as incurred, or the first time the advertising takes place. Advertising expense was $8.7 million and $5.7 million for the three months ended September 30, 2017 and September 24, 2016 , respectively, and $21.6 million and $18.1 million for the nine months ended September 30, 2017 and September 24, 2016 , respectively. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share The Company’s basic net income (loss) per share excludes the dilutive effect of stock options, unvested restricted shares, unvested performance share units and unvested restricted share units. It is based upon the weighted average number of common shares outstanding during the period divided into net income (loss). Diluted net income (loss) per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock. Stock options, unvested restricted shares, unvested performance share units, unvested restricted share units and warrants are included as potential dilutive securities for the periods applicable, using the treasury stock method to the extent dilutive. The components of the calculation of basic net income (loss) per common share and diluted net income (loss) per common share are as follows (in thousands except share and per share data): Three Months Ended Nine Months Ended September 30, 2017 September 24, 2016 September 30, 2017 September 24, 2016 Numerator: Net income (loss) $ (86,150 ) $ 11,363 $ (234,573 ) $ 36,578 Denominator: Basic weighted average common shares outstanding 23,152,645 23,578,334 23,070,781 24,048,201 Effect of dilutive securities (a): Stock options — 67,797 — 70,837 Restricted shares — 110,761 — 113,515 Performance share units — 11,602 — 5,619 Restricted share units — 1,232 — 1,082 Diluted weighted average common shares outstanding 23,152,645 23,769,726 23,070,781 24,239,254 Basic net income (loss) per common share $ (3.72 ) $ 0.48 $ (10.17 ) $ 1.52 Diluted net income (loss) per common share $ (3.72 ) $ 0.48 $ (10.17 ) $ 1.51 (a) For the three and nine months ended September 30, 2017 , due to a loss for the period, no incremental shares are included because the effect would be anti-dilutive. Securities for the three months ended September 30, 2017 and September 24, 2016 in the amount of 829,080 shares and 35,106 shares, respectively, have been excluded from the above calculation as they were anti-dilutive. Securities for the nine months ended September 30, 2017 and September 24, 2016 in the amount of 555,427 shares and 15,088 shares, respectively, have been excluded from the above calculation as they were anti-dilutive. The Company has the intent and ability to settle the principal portion of its Convertible Notes in cash, and as such, has applied the treasury stock method, which has resulted in the underlying convertible shares, and related warrants, being anti-dilutive for the three and nine months ended September 30, 2017 and September 24, 2016 as the Company’s average stock price from the date of issuance of the Convertible Notes through September 30, 2017 was less than the conversion price as well as less than the strike price of the warrant transaction. Refer to Note 5. Credit Arrangements for additional information on the Convertible Notes. |
Share Repurchase Programs
Share Repurchase Programs | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Share Repurchase Programs | Share Repurchase Programs Beginning on August 5, 2014, the Company’s board of directors approved share repurchase programs that enable the Company to purchase up to an aggregate of $370 million of its shares of common stock and / or its Convertible Notes, from time to time. As of September 30, 2017 , 8,064,325 shares of common stock pursuant to these programs, and no Convertible Notes, have been repurchased for a total of $269.9 million . There is approximately $100.1 million remaining in this program which expires on November 22, 2018. The repurchase programs do not obligate the Company to acquire any specific number of securities and may be suspended, terminated or modified at any time for any reason, including market conditions, the cost of repurchasing securities, the availability of alternative investment opportunities, liquidity, restrictions under the Company's credit agreement, applicable law and other factors deemed appropriate. No shares or other securities of the Company were repurchased under these programs during the three and nine months ended September 30, 2017 . During the three and nine months ended September 24, 2016 , the Company repurchased 179,648 and 1,919,132 shares, respectively, which were retired upon repurchase. The total purchase price during the three and nine months ended September 24, 2016 was $5.0 million and $56.0 million , respectively, with an average repurchase price per share of $27.83 and $29.19 , respectively. |
Legal Proceedings
Legal Proceedings | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | Legal Proceedings The Company is party to various lawsuits arising from time to time in the normal course of business, some of which are covered by insurance. Although the impact of the final resolution of these matters on the Company's financial condition, results of operations or cash flows is not known, management does not believe that the resolution of these lawsuits will have a material adverse effect on the financial condition, results of operations or liquidity of the Company. In addition, on or about August 22, 2017, a federal securities class action suit was filed in the United States District Court in the District of New Jersey against Vitamin Shoppe and certain officers and directors on behalf of purchasers of Vitamin Shoppe common stock between March 1, 2017 and August 6, 2017, seeking to pursue remedies under the Securities Exchange Act of 1934 alleging that the defendants made false and misleading statements regarding the purported then-ongoing improvements being achieved, the Company’s profitability trends, and its financial results. We believe this lawsuit is without merit, and we are vigorously defending the lawsuit. |
Segment Data
Segment Data | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Data | Segment Data In conjunction with the Company’s reinvention, we have increased our focus on customer centric initiatives and being an omni-channel based retailer. As recently launched initiatives, including buy online pickup in store and auto-delivery subscription sales, continue to develop, the interrelationship among the ways customers can purchase products from VSI results in sales that are generated and fulfilled across multiple channels. The Company has revised its internal management structure and reporting to align with our omni-channel strategy. The Company believes the historical structure of separate segments for retail stores and e-commerce is no longer representative of the way the business is managed. As a result, in Fiscal 2017, the Company updated its segment reporting to better align with its omni-channel strategy. These changes resulted in a single retail segment that includes fulfilled in store and direct to consumer sales channels. In addition, certain costs previously classified as corporate costs, such as retail and direct management costs, are now allocated to the retail operating segment. Segment results related to prior periods have been revised to conform with this omni-channel structure. Based upon the revised structure of the Company, there are two reporting segments, retail and manufacturing. The reporting segments have separate financial information available for which operating results are evaluated regularly by executive management in deciding how to allocate resources and in assessing performance. The Company's management evaluates segment operating results based on several indicators. The primary key performance indicators are sales and operating income for each segment. The accounting policies of the segments are consistent with those described in Note 2. Summary of Significant Accounting Policies in the Fiscal 2016 Form 10-K, and the table below represents key financial information for each of the Company's business segments as well as corporate costs. The retail segment includes the Company's retail stores and websites. The retail segment generates revenue through the sale of VMS products through Vitamin Shoppe and Super Supplements retail stores in the United States and Puerto Rico, and the Company's websites offer customers online access to a full assortment of approximately 17,000 SKUs. The manufacturing segment supplies the retail segment, along with various third parties, with finished products for sale. Corporate costs represent all other expenses not allocated to the retail or manufacturing segments which include, but are not limited to: human resources, legal, finance, information technology, and various other corporate level activity related expenses. The Company does not have identifiable assets separated between its retail segment assets and corporate assets. The identifiable assets of the manufacturing segment were $57.4 million and $62.3 million as of September 30, 2017 and December 31, 2016 , respectively. Capital expenditures for the manufacturing segment for the nine months ended September 30, 2017 and September 24, 2016 were approximately $1.1 million and $1.9 million , respectively. At September 30, 2017 and December 31, 2016 , long lived assets of the manufacturing segment were $17.1 million and $20.1 million , respectively. Depreciation and amortization expense, included in selling, general and administrative expenses, for the manufacturing segment during the three months ended September 30, 2017 and September 24, 2016 was approximately $0.3 million and $0.5 million , respectively. Depreciation and amortization expense, included in selling, general and administrative expenses, for the manufacturing segment during the nine months ended September 30, 2017 and September 24, 2016 was approximately $0.8 million and $1.4 million , respectively. The following table contains key financial information of the Company’s reporting segments (in thousands): Three Months Ended Nine Months Ended September 30, 2017 September 24, 2016* September 30, 2017 September 24, 2016* Net sales: Retail $ 282,408 $ 301,077 $ 884,599 $ 946,004 Manufacturing 20,872 24,357 65,886 65,695 Segment net sales 303,280 325,434 950,485 1,011,699 Elimination of intersegment revenues (15,094 ) (10,547 ) (40,561 ) (27,321 ) Net sales $ 288,186 $ 314,887 $ 909,924 $ 984,378 Income (loss) from operations: Retail $ 16,104 $ 34,344 $ 74,531 $ 116,451 Manufacturing (4,530 ) (734 ) (23,643 ) (2,818 ) Corporate costs (119,909 ) (13,337 ) (311,868 ) (45,374 ) Income (loss) from operations (1) $ (108,335 ) $ 20,273 $ (260,980 ) $ 68,259 * Prior year periods have been revised to present the Company's new reportable segments. (1) Income (loss) from operations includes (in thousands): Three Months Ended Nine Months Ended September 30, 2017 September 24, 2016 September 30, 2017 September 24, 2016 Goodwill impairments (a) $ 46,308 $ — $ 210,633 $ — Tradename impairment (b) 59,405 — 59,405 — Nutri-Force turnaround costs (c) 1,676 — 16,002 — Store impairment charges (d) 287 197 4,052 415 Distribution center closing costs (e) 2,257 — 2,257 — Cost reduction project (f) — 2,269 — 3,761 Canada stores closing costs (g) — (906 ) — 1,889 Super Supplements conversion costs (h) — — — 1,046 Reinvention strategy costs (i) — — — 541 (a) Impairment charges on the goodwill of the retail segment. (b) Impairment charge on the Vitamin Shoppe tradename. (c) The costs represent restructuring costs in the manufacturing segment. See Note 7., Restructuring Costs for additional information. (d) Impairment charges on the fixed assets of retail locations still in use in the Company's operations. (e) The costs represent restructuring costs in the retail segment. See Note 7., Restructuring Costs for additional information. (f) Outside consulting costs relating to a project to identify and implement cost reduction opportunities included in corporate costs. (g) Costs primarily include lease termination charges included in the retail segment and corporate costs. The credit during the three months ended September 24, 2016 relates to a reversal of lease liabilities previously accrued. (h) Costs primarily related to the closure of the Seattle distribution center included in the retail segment and corporate costs. (i) The costs represent outside consultants fees in connection with the Company's "reinvention strategy" included in corporate costs. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value hierarchy requires the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment. The three levels are defined as follows: • Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities. • Level 2: Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. • Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. The Company’s financial instruments include cash, accounts receivable, accounts payable and its Revolving Credit Facility. The Company believes that the recorded values of these financial instruments approximate their fair values due to their nature and respective durations. The Company's financial instruments also include its Convertible Notes (in thousands): September 30, 2017 December 31, 2016 Fair Value $ 107,238 $ 132,677 Carrying Value (1) 125,013 120,874 (1) Represents the net carrying amount of the liability component of the Convertible Notes. Subsequent to the issuance of the Company’s 2016 consolidated financial statements, management determined that the allocation of fair value between the liability and equity portion of the Convertible Notes needed to be revised, and accordingly, the fair value previously reported as $111.6 million has been revised to $132.7 million as of December 31, 2016 in the table above. The fair value of the Convertible Notes was determined based on inputs that are observable in the market or that could be derived from, or corroborated with, observable market data, including the trading price of the Company’s Convertible Notes, when available, the Company’s stock price and interest rates based on similar debt issued by parties with credit ratings similar to the Company (Level 1 or 2). Goodwill, indefinite-lived tradenames and store fixed assets are measured at fair value on a non-recurring basis, that is, the assets are subject to fair value adjustments in certain circumstances such as when there is evidence of impairment. These measures of fair value, and related inputs, are considered Level 3 measures under the fair value hierarchy. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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, and revenue and expenses during the reporting period. Actual results could differ from those estimates. |
New Accounting Pronouncements | Except as noted below, the Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on its results of operations, financial condition, or cash flows, based on current information. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers (Topic 606). Under ASU 2014-09, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB deferred the effective date of ASU 2014-09 by one year. ASU 2014-09 will be effective for annual reporting periods beginning after December 15, 2017 for public companies and early adoption of ASU 2014-09 is permitted for public companies for annual reporting periods beginning after December 15, 2016. The Company is still in the process of completing its assessment of each performance obligation, such as the customer loyalty program and customer incentives, contract assets and contract liabilities, and the related disclosure requirements. Based on the preliminary assessment which is anticipated to be complete by fiscal year end, the Company does not expect this guidance will have a material impact to the consolidated financial statements. The Company expects to apply the modified retrospective method for the transition to ASU 2014-09. In February 2016, the FASB issued Accounting Standards Update No. 2016-02 (“ASU 2016-02”), Leases (Topic 842). ASU 2016-02 was issued by the FASB to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The main difference between previous GAAP and Topic 842 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. ASU 2016-02 will require modified retrospective application at the beginning of our first quarter of Fiscal 2019, but permits adoption in an earlier period. Although the Company is still evaluating ASU 2016-02, the Company currently expects this guidance will not have a material impact on its results of operations, however, this guidance will result in a significant increase to long-term assets and liabilities on the Company's balance sheet given the Company has a significant number of leases. The Company is also in the process of identifying changes to its business processes, systems and controls to support the adoption of ASU 2016-02 in Fiscal 2019. In March 2016, the FASB issued Accounting Standards Update No. 2016-09 (“ASU 2016-09”), Compensation-Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 addresses simplification of several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for public companies for annual reporting periods beginning after December 15, 2016, and interim periods within those fiscal years. The Company adopted ASU 2016-09 prospectively in the first quarter of Fiscal 2017. All excess tax benefits and deficiencies in the current and future periods will be recognized in income tax expense in the Company's consolidated statements of operations in the reporting period in which they occur. This will result in increased volatility in the Company's effective tax rate. For the three and nine month periods ended September 30, 2017, the Company recognized discrete tax expense related to the excess tax deficiencies from stock-based compensation of $0.2 million and $0.9 million , respectively. In January 2017, the FASB issued Accounting Standards Update No. 2017-04 (“ASU 2017-04”), Intangibles - Goodwill and Other - Simplifying the Test for Goodwill Impairment (Topic 350). Under ASU 2017-04, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of the reporting unit with its carrying amount and should recognize an impairment charge for the amount by which that carrying amount exceeds the reporting unit's fair value. The loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. ASU 2017-04 will be effective for the Company for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company elected to early adopt this guidance for interim and annual goodwill impairment tests performed on testing dates after January 1, 2017. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The components of inventories are as follows (in thousands): September 30, 2017 December 31, 2016 Finished goods $ 233,359 $ 222,046 Work-in-process 5,842 7,566 Raw materials 8,012 12,124 $ 247,213 $ 241,736 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Intangible Assets | The following table discloses the carrying value of all intangible assets (in thousands): September 30, 2017 December 31, 2016 Gross Carrying Amount Accumulated Amortization Accumulated Impairment Charges (1) Net Gross Carrying Amount Accumulated Amortization Accumulated Impairment Charges (1) Net Intangible assets Goodwill $ 243,269 $ — $ 243,269 $ — $ 243,269 $ — $ 32,636 $ 210,633 Tradenames – Indefinite-lived 68,405 — 59,405 9,000 68,405 — — 68,405 Brands 10,000 1,852 — 8,148 10,000 1,435 — 8,565 Customer relationships 7,500 906 6,594 — 7,500 906 6,594 — Tradenames – Definite-lived 5,277 3,279 — 1,998 4,964 3,073 — 1,891 Software 1,300 867 — 433 1,300 672 — 628 $ 335,751 $ 6,904 $ 309,268 $ 19,579 $ 335,438 $ 6,086 $ 39,230 $ 290,122 (1) During the third quarter of Fiscal 2017, the Company experienced another significant reduction to its market capitalization. As a result, the Company concluded that an impairment trigger occurred for the retail reporting unit and therefore interim impairment tests of goodwill and other intangible assets were performed. The Company also had recently updated its long-range plan. The results of the interim goodwill and other intangible assets impairment tests indicated that the carrying value of the Vitamin Shoppe tradename exceeded its fair value and that the carrying value of the retail reporting unit exceeded its fair value. The Company recorded an impairment charge on the Vitamin Shoppe tradename of $59.4 million during the third quarter of Fiscal 2017. The Company also recorded an impairment charge for the remaining goodwill of its retail segment of $46.3 million during the third quarter of Fiscal 2017, which is not deductible for income tax purposes. During the second quarter of Fiscal 2017, the Company had experienced a significant reduction to its market capitalization. Additionally, as a result of changed market conditions and the Company's updated initiatives for the second half of Fiscal 2017, the Company revised the outlook for Fiscal 2017 and updated its long-range plan to reflect its operations in this increasingly competitive environment. Based on these factors, the Company concluded that an impairment trigger occurred for the retail reporting unit and therefore interim impairment tests of goodwill and other intangible assets were performed. The results of the interim goodwill impairment test indicated that the carrying value of the retail reporting unit exceeded its fair value, and in accordance with the early adoption of ASU 2017-04, Intangibles - Goodwill and Other - Simplifying the Test for Goodwill Impairment, the Company recorded an impairment charge on the goodwill of its retail segment of $164.3 million during the second quarter of Fiscal 2017, of which $130.9 million is not deductible for income tax purposes. In the fourth quarter of Fiscal 2016, the Company recorded impairment charges on goodwill of $32.6 million and on the customer relationships intangible asset of the manufacturing segment of $6.6 million . |
Expected Amortization Expense on Definite-Lived Intangible Assets | The expected amortization expense on definite-lived intangible assets on the Company’s consolidated balance sheet at September 30, 2017 , is as follows (in thousands): Remainder of Fiscal 2017 $ 270 Fiscal 2018 1,099 Fiscal 2019 947 Fiscal 2020 839 Fiscal 2021 839 Thereafter 6,585 $ 10,579 |
Accrued Expenses and Other Cu23
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Payables and Accruals [Abstract] | |
Components of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following (in thousands): September 30, 2017 December 31, 2016 Accrued salaries and related expenses $ 12,552 $ 13,861 Accrued fixed asset additions 8,198 4,067 Sales tax payable and related expenses 7,292 7,669 Deferred sales 5,353 5,209 Other accrued expenses 32,113 26,693 $ 65,508 $ 57,499 |
Credit Arrangements (Tables)
Credit Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Components of Convertible Notes | The Convertible Notes consist of the following components (in thousands): September 30, 2017 December 31, 2016 Liability component: Principal $ 143,750 $ 143,750 Conversion feature (24,800 ) (24,800 ) Liability portion of debt issuance costs (3,802 ) (3,802 ) Amortization 9,865 5,726 Net carrying amount $ 125,013 $ 120,874 Equity component: Conversion feature $ 24,800 $ 24,800 Equity portion of debt issuance costs (793 ) (793 ) Deferred taxes 941 941 Net carrying amount $ 24,948 $ 24,948 |
Components of Interest Expense, Net | Interest expense, net for the three and nine months ended September 30, 2017 and September 24, 2016 consists of the following (in thousands): Three Months Ended Nine Months Ended September 30, 2017 September 24, 2016 September 30, 2017 September 24, 2016 Amortization of debt discount on Convertible Notes $ 1,201 $ 1,156 $ 3,569 $ 3,434 Interest on Convertible Notes 818 818 2,453 2,455 Amortization of deferred financing fees 220 236 678 708 Interest / fees on the Revolving Credit Facility and other interest 187 153 512 380 Interest expense, net $ 2,426 $ 2,363 $ 7,212 $ 6,977 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Stock Options | The following table summarizes stock options for the 2006 Plan and 2009 Plan as of September 30, 2017 and changes during the nine month period then ended: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2016 502,797 $ 25.30 Granted — $ — Exercised (100,000 ) $ 15.11 Canceled/forfeited (88,605 ) $ 27.93 Outstanding at September 30, 2017 314,192 $ 27.79 6.02 $ — Vested or expected to vest at September 30, 2017 304,772 $ 27.79 6.02 Vested and exercisable at September 30, 2017 175,167 $ 27.17 3.97 $ — |
Summary of Fair Value Option Grant Using Black-Scholes Option-Pricing Model | The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: Three Months Ended Nine Months Ended September 24, 2016 September 24, 2016 Expected dividend yield 0.0 % 0.0 % Weighted average expected volatility 31.4 % 32.5 % Weighted average risk-free interest rate 1.0 % 1.2 % Expected holding period 4.00 years 4.00 years |
Summary of Performance Share Units | The following table summarizes performance share units for the 2009 Plan as of September 30, 2017 and changes during the nine month period then ended: Number of Unvested Performance Share Units Weighted Average Grant Date Fair Value Unvested at December 31, 2016 125,015 $ 30.43 Granted 241,485 $ 19.10 Vested — $ — Canceled/forfeited (78,135 ) $ 24.94 Unvested at September 30, 2017 288,365 $ 22.43 |
Restricted shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Restricted Shares and Restricted Share Units | The following table summarizes restricted shares for the 2009 Plan as of September 30, 2017 and changes during the nine month period then ended: Number of Unvested Restricted Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2016 372,817 $ 35.20 Granted 577,183 $ 14.04 Vested (86,607 ) $ 42.49 Canceled/forfeited (124,781 ) $ 27.36 Unvested at September 30, 2017 738,612 $ 19.13 |
Restricted share units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Restricted Shares and Restricted Share Units | The following table summarizes restricted share units for the 2009 Plan as of September 30, 2017 and changes during the nine month period then ended: Number of Unvested Weighted Unvested at December 31, 2016 15,390 $ 30.71 Granted 54,078 $ 12.04 Vested (16,530 ) $ 29.89 Canceled/forfeited — $ — Unvested at September 30, 2017 52,938 $ 11.90 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Costs Incurred for Restructuring | Costs incurred for the restructuring of Nutri-Force during the three and nine months ended September 30, 2017 are as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 Inventory obsolescence charges $ (164 ) $ 8,711 Equipment impairment charges — 1,820 Accounts receivable allowance charges (118 ) 1,225 Outside consulting fees 1,430 3,147 Severance and other expenses 528 1,099 $ 1,676 $ 16,002 Costs incurred related to the closing of the North Bergen, New Jersey distribution center for the three and nine months ended September 30, 2017 are as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 Inventory obsolescence charges $ 2,000 $ 2,000 Acceleration of depreciation 233 233 Severance and other expenses (1) 24 24 $ 2,257 $ 2,257 (1) As of September 30, 2017, there have been no payments of severance and other expenses related to the closing of the North Bergen, New Jersey distribution center. |
Summary of Activity Related to Restructuring Liabilities | The following table summarizes the activity related to the Company's liabilities for the restructuring of Nutri-Force (in thousands): Balance as of December 31, 2016 $ — Outside consulting fees expense 3,147 Severance and other expense 1,099 Outside consulting fees payments (3,147 ) Severance and other payments (628 ) Balance as of September 30, 2017 $ 471 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Net Income (Loss) Per Common Share | The components of the calculation of basic net income (loss) per common share and diluted net income (loss) per common share are as follows (in thousands except share and per share data): Three Months Ended Nine Months Ended September 30, 2017 September 24, 2016 September 30, 2017 September 24, 2016 Numerator: Net income (loss) $ (86,150 ) $ 11,363 $ (234,573 ) $ 36,578 Denominator: Basic weighted average common shares outstanding 23,152,645 23,578,334 23,070,781 24,048,201 Effect of dilutive securities (a): Stock options — 67,797 — 70,837 Restricted shares — 110,761 — 113,515 Performance share units — 11,602 — 5,619 Restricted share units — 1,232 — 1,082 Diluted weighted average common shares outstanding 23,152,645 23,769,726 23,070,781 24,239,254 Basic net income (loss) per common share $ (3.72 ) $ 0.48 $ (10.17 ) $ 1.52 Diluted net income (loss) per common share $ (3.72 ) $ 0.48 $ (10.17 ) $ 1.51 (a) For the three and nine months ended September 30, 2017 , due to a loss for the period, no incremental shares are included because the effect would be anti-dilutive. |
Segment Data (Tables)
Segment Data (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Table of Key Financial Information of Company's Reporting Segments | The following table contains key financial information of the Company’s reporting segments (in thousands): Three Months Ended Nine Months Ended September 30, 2017 September 24, 2016* September 30, 2017 September 24, 2016* Net sales: Retail $ 282,408 $ 301,077 $ 884,599 $ 946,004 Manufacturing 20,872 24,357 65,886 65,695 Segment net sales 303,280 325,434 950,485 1,011,699 Elimination of intersegment revenues (15,094 ) (10,547 ) (40,561 ) (27,321 ) Net sales $ 288,186 $ 314,887 $ 909,924 $ 984,378 Income (loss) from operations: Retail $ 16,104 $ 34,344 $ 74,531 $ 116,451 Manufacturing (4,530 ) (734 ) (23,643 ) (2,818 ) Corporate costs (119,909 ) (13,337 ) (311,868 ) (45,374 ) Income (loss) from operations (1) $ (108,335 ) $ 20,273 $ (260,980 ) $ 68,259 * Prior year periods have been revised to present the Company's new reportable segments. (1) Income (loss) from operations includes (in thousands): Three Months Ended Nine Months Ended September 30, 2017 September 24, 2016 September 30, 2017 September 24, 2016 Goodwill impairments (a) $ 46,308 $ — $ 210,633 $ — Tradename impairment (b) 59,405 — 59,405 — Nutri-Force turnaround costs (c) 1,676 — 16,002 — Store impairment charges (d) 287 197 4,052 415 Distribution center closing costs (e) 2,257 — 2,257 — Cost reduction project (f) — 2,269 — 3,761 Canada stores closing costs (g) — (906 ) — 1,889 Super Supplements conversion costs (h) — — — 1,046 Reinvention strategy costs (i) — — — 541 (a) Impairment charges on the goodwill of the retail segment. (b) Impairment charge on the Vitamin Shoppe tradename. (c) The costs represent restructuring costs in the manufacturing segment. See Note 7., Restructuring Costs for additional information. (d) Impairment charges on the fixed assets of retail locations still in use in the Company's operations. (e) The costs represent restructuring costs in the retail segment. See Note 7., Restructuring Costs for additional information. (f) Outside consulting costs relating to a project to identify and implement cost reduction opportunities included in corporate costs. (g) Costs primarily include lease termination charges included in the retail segment and corporate costs. The credit during the three months ended September 24, 2016 relates to a reversal of lease liabilities previously accrued. (h) Costs primarily related to the closure of the Seattle distribution center included in the retail segment and corporate costs. (i) The costs represent outside consultants fees in connection with the Company's "reinvention strategy" included in corporate costs. |
Fair Value of Financial Instr29
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Convertible Notes | The Company's financial instruments also include its Convertible Notes (in thousands): September 30, 2017 December 31, 2016 Fair Value $ 107,238 $ 132,677 Carrying Value (1) 125,013 120,874 (1) Represents the net carrying amount of the liability component of the Convertible Notes. |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Discrete tax expense related to excess tax deficiencies from stock-based compensation | $ 0.2 | $ 0.9 |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 233,359 | $ 222,046 |
Work-in-process | 5,842 | 7,566 |
Raw materials | 8,012 | 12,124 |
Total inventories | $ 247,213 | $ 241,736 |
Goodwill and Intangible Asset32
Goodwill and Intangible Assets - Schedule of Goodwill and Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Jul. 01, 2017 | Dec. 31, 2016 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | |
Indefinite-lived Intangible Assets [Line Items] | ||||||
Impairment charge on tradename | $ 59,405 | $ 0 | $ 59,405 | $ 0 | ||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill, Gross Carrying Amount | 243,269 | $ 243,269 | 243,269 | |||
Goodwill, Accumulated Impairment Charges | 243,269 | 32,636 | 243,269 | |||
Goodwill, Net | 0 | 210,633 | 0 | |||
Intangible assets, Accumulated Amortization | 6,904 | 6,086 | 6,904 | |||
Intangible assets, Definite-lived, Net | 10,579 | 10,579 | ||||
Goodwill impairment charges | 46,308 | 32,600 | $ 0 | 210,633 | $ 0 | |
Amount of goodwill impairment charges not deductible for income tax purposes | 177,200 | |||||
Intangible Assets, Net (Including Goodwill) [Abstract] | ||||||
Goodwill and Intangible Assets, Gross Carrying Amount | 335,751 | 335,438 | 335,751 | |||
Goodwill and Intangible Assets, Accumulated Impairment Charges | 309,268 | 39,230 | 309,268 | |||
Goodwill and Intangible Assets, Net | 19,579 | 290,122 | 19,579 | |||
Retail | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill impairment charges | 46,300 | $ 164,300 | ||||
Amount of goodwill impairment charges not deductible for income tax purposes | $ 130,900 | |||||
Tradenames | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Intangible assets, Tradenames - Indefinite-lived, Gross Carrying Amount | 68,405 | 68,405 | 68,405 | |||
Intangible assets, Tradenames - Indefinite-lived, Accumulated Impairment Charges | 59,405 | 0 | 59,405 | |||
Intangible assets, Tradenames - Indefinite-lived, Net | 9,000 | 68,405 | 9,000 | |||
Impairment charge on tradename | 59,400 | 59,400 | ||||
Brands | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets, Definite-lived, Gross Carrying Amount | 10,000 | 10,000 | 10,000 | |||
Intangible assets, Accumulated Amortization | 1,852 | 1,435 | 1,852 | |||
Intangible assets, Definite-lived, Accumulated Impairment Charges | 0 | 0 | 0 | |||
Intangible assets, Definite-lived, Net | 8,148 | 8,565 | 8,148 | |||
Customer relationships | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets, Definite-lived, Gross Carrying Amount | 7,500 | 7,500 | 7,500 | |||
Intangible assets, Accumulated Amortization | 906 | 906 | 906 | |||
Intangible assets, Definite-lived, Accumulated Impairment Charges | 6,594 | 6,594 | 6,594 | |||
Intangible assets, Definite-lived, Net | 0 | 0 | 0 | |||
Customer relationships | Manufacturing | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Impairment charges on finite-lived intangible assets | 6,600 | |||||
Tradenames | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets, Definite-lived, Gross Carrying Amount | 5,277 | 4,964 | 5,277 | |||
Intangible assets, Accumulated Amortization | 3,279 | 3,073 | 3,279 | |||
Intangible assets, Definite-lived, Accumulated Impairment Charges | 0 | 0 | 0 | |||
Intangible assets, Definite-lived, Net | 1,998 | 1,891 | 1,998 | |||
Software | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets, Definite-lived, Gross Carrying Amount | 1,300 | 1,300 | 1,300 | |||
Intangible assets, Accumulated Amortization | 867 | 672 | 867 | |||
Intangible assets, Definite-lived, Accumulated Impairment Charges | 0 | 0 | 0 | |||
Intangible assets, Definite-lived, Net | $ 433 | $ 628 | $ 433 |
Goodwill and Intangible Asset33
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Dec. 31, 2016 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill impairment charges | $ 46,308 | $ 32,600 | $ 0 | $ 210,633 | $ 0 |
Amount of goodwill impairment charges not deductible for income tax purposes | $ 177,200 | ||||
Effective tax rate benefit | 12.50% | ||||
Impairment charge on tradename | 59,405 | $ 0 | $ 59,405 | $ 0 | |
Tax deductible portion of goodwill impairment charges | 33,400 | ||||
Increase in net deferred tax assets | $ 35,800 | ||||
Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful lives of definite-lived intangible assets, years | 5 years | ||||
Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful lives of definite-lived intangible assets, years | 18 years | ||||
Tradenames | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment charge on tradename | $ 59,400 | $ 59,400 |
Goodwill and Intangible Asset34
Goodwill and Intangible Assets - Expected Amortization Expense on Definite-Lived Intangible Assets (Detail) $ in Thousands | Sep. 30, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of Fiscal 2017 | $ 270 |
Fiscal 2,018 | 1,099 |
Fiscal 2,019 | 947 |
Fiscal 2,020 | 839 |
Fiscal 2,021 | 839 |
Thereafter | 6,585 |
Intangible assets, Definite-lived, Net | $ 10,579 |
Accrued Expenses and Other Cu35
Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Accrued salaries and related expenses | $ 12,552 | $ 13,861 |
Accrued fixed asset additions | 8,198 | 4,067 |
Sales tax payable and related expenses | 7,292 | 7,669 |
Deferred sales | 5,353 | 5,209 |
Other accrued expenses | 32,113 | 26,693 |
Accrued expenses and other current liabilities | $ 65,508 | $ 57,499 |
Credit Arrangements - Additiona
Credit Arrangements - Additional Information (Detail) - USD ($) | Dec. 09, 2015 | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 24, 2016 |
Debt Instrument [Line Items] | ||||
Outstanding debt | $ 12,000,000 | $ 11,000,000 | ||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Outstanding debt | 12,000,000 | 11,000,000 | ||
Revolving Credit Facility, current borrowing capacity | 90,000,000 | |||
Revolving Credit Facility, maximum borrowing capacity | 150,000,000 | |||
Largest amount borrowed under Revolving Credit Facility | 38,000,000 | $ 27,000,000 | ||
Revolving Credit Facility, unused available line of credit | $ 75,200,000 | |||
Weighted average interest rate | 2.18% | 1.75% | ||
Percentage of annual commitment fee on undrawn portion of Revolving Credit Facility | 0.25% | |||
Revolving Credit Facility | Minimum | ||||
Debt Instrument [Line Items] | ||||
Percentage of borrowing base availability, threshold | 33.00% | |||
Revolving Credit Facility | Maximum | ||||
Debt Instrument [Line Items] | ||||
Percentage of borrowing base availability, threshold | 66.00% | |||
Revolving Credit Facility | Alternative Base Rate | Greater Than or Equal To 66% of Borrowing Base Availability | ||||
Debt Instrument [Line Items] | ||||
Variable interest rate, basis spread | 0.00% | |||
Revolving Credit Facility | Alternative Base Rate | Between 33% and 66% of Borrowing Base Availability | ||||
Debt Instrument [Line Items] | ||||
Variable interest rate, basis spread | 0.125% | |||
Revolving Credit Facility | Alternative Base Rate | Less Than 33% of Borrowing Base Availability | ||||
Debt Instrument [Line Items] | ||||
Variable interest rate, basis spread | 0.25% | |||
Revolving Credit Facility | Adjusted Eurodollar Rate | Greater Than or Equal To 66% of Borrowing Base Availability | ||||
Debt Instrument [Line Items] | ||||
Variable interest rate, basis spread | 1.00% | |||
Revolving Credit Facility | Adjusted Eurodollar Rate | Between 33% and 66% of Borrowing Base Availability | ||||
Debt Instrument [Line Items] | ||||
Variable interest rate, basis spread | 1.125% | |||
Revolving Credit Facility | Adjusted Eurodollar Rate | Less Than 33% of Borrowing Base Availability | ||||
Debt Instrument [Line Items] | ||||
Variable interest rate, basis spread | 1.25% | |||
Convertible Senior Notes Due 2020 | ||||
Debt Instrument [Line Items] | ||||
Principal | $ 143,800,000 | $ 143,750,000 | $ 143,750,000 | |
Debt instrument, interest rate | 2.25% | |||
Debt converted into shares of common stock (in shares) | 25.1625 | |||
Debt instrument, conversion price | $ 1,000 | |||
Stock, conversion price per share (in dollars per share) | $ 39.74 | |||
Debt instrument, effective interest rate on debt discount | 3.80% | |||
Convertible note hedge transactions amount paid | $ 26,400,000 | |||
Proceeds from sale of warrants | $ 13,000,000 | |||
Strike price of warrant (in dollars per share) | $ 52.99 | |||
Net proceeds from Convertible Notes and related transactions | $ 125,700,000 | |||
Commissions and offering costs | $ 4,600,000 |
Credit Arrangements - Component
Credit Arrangements - Components of Convertible Notes (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 | Dec. 09, 2015 |
Liability component: | |||
Net carrying amount | $ 125,013,000 | $ 120,874,000 | |
Convertible Senior Notes Due 2020 | |||
Liability component: | |||
Principal | 143,750,000 | 143,750,000 | $ 143,800,000 |
Conversion feature | (24,800,000) | (24,800,000) | |
Liability portion of debt issuance costs | (3,802,000) | (3,802,000) | |
Amortization | 9,865,000 | 5,726,000 | |
Net carrying amount | 125,013,000 | 120,874,000 | |
Equity component: | |||
Conversion feature | 24,800,000 | 24,800,000 | |
Equity portion of debt issuance costs | (793,000) | (793,000) | |
Deferred taxes | 941,000 | 941,000 | |
Net carrying amount | $ 24,948,000 | $ 24,948,000 |
Credit Arrangements - Interest
Credit Arrangements - Interest Expense, Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | |
Debt Instrument [Line Items] | ||||
Amortization of debt discount on Convertible Notes | $ 3,569 | $ 3,434 | ||
Amortization of deferred financing fees | $ 220 | $ 236 | 678 | 708 |
Interest expense, net | 2,426 | 2,363 | 7,212 | 6,977 |
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Interest / fees on Convertible Notes, Revolving Credit Facility, and other interest | 187 | 153 | 512 | 380 |
Convertible Senior Notes Due 2020 | ||||
Debt Instrument [Line Items] | ||||
Amortization of debt discount on Convertible Notes | 1,201 | 1,156 | 3,569 | 3,434 |
Interest / fees on Convertible Notes, Revolving Credit Facility, and other interest | $ 818 | $ 818 | $ 2,453 | $ 2,455 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($)shares | Sep. 24, 2016USD ($)$ / shares | Sep. 30, 2017USD ($)planshares | Sep. 24, 2016USD ($)$ / shares | Dec. 31, 2016shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of equity incentive plans | plan | 2 | ||||
Treasury stock (in shares) | shares | 195,214 | 195,214 | 161,185 | ||
Intrinsic value of options exercised | $ 700 | $ 100 | |||
Cash received from options exercised | $ 1,511 | $ 90 | |||
Options granted (in shares) | shares | 0 | ||||
Weighted-average grant date fair value for stock options (in dollars per share) | $ / shares | $ 7.07 | $ 8.21 | |||
Compensation expense attributable to stock based compensation | $ 1,400 | $ 1,200 | $ 4,100 | $ 4,700 | |
Remaining unrecognized stock based compensation expense for non-vested stock options, restricted shares, performance share units and restricted shares units to be expensed in future periods | 8,400 | $ 8,400 | |||
Weighted average recognition period | 1 year 8 months 12 days | ||||
Estimated value of future forfeitures | $ 800 | $ 800 | |||
Treasury stock purchased in settlement of employees' tax obligations (in shares) | shares | 34,029 | ||||
Treasury stock purchased in settlement of employees' tax obligations, value | $ 600 | ||||
2006 and 2009 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available to grant under both plans (in shares) | shares | 1,517,878 | 1,517,878 | |||
Treasury stock (in shares) | shares | 195,214 | 195,214 | |||
Restricted shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Intrinsic value of shares vested | $ 1,400 | 2,700 | |||
Performance share units | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 25.00% | ||||
Performance share units | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 150.00% | ||||
Restricted share units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Intrinsic value of shares vested | $ 100 | $ 300 |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Restricted Shares, Performance Share Units, and Restricted Share Units (Detail) | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Restricted shares | |
Number of Unvested Shares | |
Unvested at beginning of period (in shares) | shares | 372,817 |
Granted (in shares) | shares | 577,183 |
Vested (in shares) | shares | (86,607) |
Canceled/forfeited (in shares) | shares | (124,781) |
Unvested at end of period (in shares) | shares | 738,612 |
Weighted Average Grant Date Fair Value | |
Unvested at beginning of period (in dollars per share) | $ / shares | $ 35.20 |
Granted (in dollars per share) | $ / shares | 14.04 |
Vested (in dollars per share) | $ / shares | 42.49 |
Canceled/forfeited (in dollars per share) | $ / shares | 27.36 |
Unvested at end of period (in dollars per share) | $ / shares | $ 19.13 |
Performance share units | |
Number of Unvested Shares | |
Unvested at beginning of period (in shares) | shares | 125,015 |
Granted (in shares) | shares | 241,485 |
Vested (in shares) | shares | 0 |
Canceled/forfeited (in shares) | shares | (78,135) |
Unvested at end of period (in shares) | shares | 288,365 |
Weighted Average Grant Date Fair Value | |
Unvested at beginning of period (in dollars per share) | $ / shares | $ 30.43 |
Granted (in dollars per share) | $ / shares | 19.10 |
Vested (in dollars per share) | $ / shares | 0 |
Canceled/forfeited (in dollars per share) | $ / shares | 24.94 |
Unvested at end of period (in dollars per share) | $ / shares | $ 22.43 |
Restricted share units | |
Number of Unvested Shares | |
Unvested at beginning of period (in shares) | shares | 15,390 |
Granted (in shares) | shares | 54,078 |
Vested (in shares) | shares | (16,530) |
Canceled/forfeited (in shares) | shares | 0 |
Unvested at end of period (in shares) | shares | 52,938 |
Weighted Average Grant Date Fair Value | |
Unvested at beginning of period (in dollars per share) | $ / shares | $ 30.71 |
Granted (in dollars per share) | $ / shares | 12.04 |
Vested (in dollars per share) | $ / shares | 29.89 |
Canceled/forfeited (in dollars per share) | $ / shares | 0 |
Unvested at end of period (in dollars per share) | $ / shares | $ 11.90 |
Stock Based Compensation - Su41
Stock Based Compensation - Summary of Stock Options (Detail) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($)$ / sharesshares | |
Number of Options | |
Outstanding at beginning of period (in shares) | shares | 502,797 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | (100,000) |
Canceled/forfeited (in shares) | shares | (88,605) |
Outstanding at end of period (in shares) | shares | 314,192 |
Vested or expected to vest (in shares) | shares | 304,772 |
Vested and exercisable (in shares) | shares | 175,167 |
Weighted Average Exercise Price | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 25.30 |
Granted (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 15.11 |
Canceled/forfeited (in dollars per share) | $ / shares | 27.93 |
Outstanding at end of period (in dollars per share) | $ / shares | 27.79 |
Vested or expected to vest (in dollars per share) | $ / shares | 27.79 |
Vested and exercisable (in dollars per share) | $ / shares | $ 27.17 |
Outstanding, Weighted Average Remaining Contractual Life (years) | 6 years 7 days |
Vested or expected to vest, Weighted Average Remaining Contractual Life (years) | 6 years 7 days |
Vested and exercisable, Weighted Average Remaining Contractual Life (years) | 3 years 11 months 19 days |
Outstanding, Aggregate Intrinsic Value | $ | $ 0 |
Vested and exercisable, Aggregate Intrinsic Value | $ | $ 0 |
Stock Based Compensation - Su42
Stock Based Compensation - Summary of Fair Value Option Grant Using Black-Scholes Option-Pricing Model (Detail) | 3 Months Ended | 9 Months Ended |
Sep. 24, 2016 | Sep. 24, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Expected dividend yield | 0.00% | 0.00% |
Weighted average expected volatility | 31.40% | 32.50% |
Weighted average risk-free interest rate | 1.00% | 1.20% |
Expected holding period | 4 years | 4 years |
Restructuring Costs - Schedule
Restructuring Costs - Schedule of Costs Incurred for Restructuring (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Nutri-Force | ||
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred for restructuring | $ 1,676,000 | $ 16,002,000 |
Nutri-Force | Inventory obsolescence charges | ||
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred for restructuring | (164,000) | 8,711,000 |
Nutri-Force | Equipment impairment charges | ||
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred for restructuring | 0 | 1,820,000 |
Nutri-Force | Accounts receivable allowance charges | ||
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred for restructuring | (118,000) | 1,225,000 |
Nutri-Force | Outside consulting fees | ||
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred for restructuring | 1,430,000 | 3,147,000 |
Payments | 3,147,000 | |
Nutri-Force | Severance and other expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred for restructuring | 528,000 | 1,099,000 |
Payments | 628,000 | |
Closing of North Bergen, New Jersey Distribution Center | ||
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred for restructuring | 2,257,000 | 2,257,000 |
Closing of North Bergen, New Jersey Distribution Center | Inventory obsolescence charges | ||
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred for restructuring | 2,000,000 | 2,000,000 |
Closing of North Bergen, New Jersey Distribution Center | Acceleration of depreciation | ||
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred for restructuring | 233,000 | 233,000 |
Closing of North Bergen, New Jersey Distribution Center | Severance and other expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred for restructuring | $ 24,000 | 24,000 |
Payments | $ 0 |
Restructuring Costs - Narrative
Restructuring Costs - Narrative (Details) - Scenario, Forecast $ in Millions | 12 Months Ended |
Dec. 30, 2017USD ($) | |
Nutri-Force | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs expected to be incurred | $ 17 |
Closing of North Bergen, New Jersey Distribution Center | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs expected to be incurred | $ 4 |
Restructuring Costs - Summary o
Restructuring Costs - Summary of Activity Related to Restructuring Liabilities (Details) - Nutri-Force $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 0 |
Ending balance | 471 |
Outside consulting fees | |
Restructuring Reserve [Roll Forward] | |
Expenses | 3,147 |
Payments | (3,147) |
Severance and other | |
Restructuring Reserve [Roll Forward] | |
Expenses | 1,099 |
Payments | $ (628) |
Advertising Costs - Additional
Advertising Costs - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | |
Other Income and Expenses [Abstract] | ||||
Advertising expense | $ 8.7 | $ 5.7 | $ 21.6 | $ 18.1 |
Net Income (Loss) Per Share - C
Net Income (Loss) Per Share - Calculation of Basic and Diluted Net Income (Loss) Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | |
Numerator: | ||||
Net income (loss) | $ (86,150) | $ 11,363 | $ (234,573) | $ 36,578 |
Denominator: | ||||
Basic weighted average common shares outstanding (in shares) | 23,152,645 | 23,578,334 | 23,070,781 | 24,048,201 |
Effect of dilutive securities: | ||||
Effect of dilutive securities (in shares) | 0 | 0 | ||
Diluted weighted average common shares outstanding (in shares) | 23,152,645 | 23,769,726 | 23,070,781 | 24,239,254 |
Basic net income (loss) per common share (in dollars per share) | $ (3.72) | $ 0.48 | $ (10.17) | $ 1.52 |
Diluted net income (loss) per common share (in dollars per share) | $ (3.72) | $ 0.48 | $ (10.17) | $ 1.51 |
Stock options | ||||
Effect of dilutive securities: | ||||
Effect of dilutive securities (in shares) | 0 | 67,797 | 0 | 70,837 |
Restricted shares | ||||
Effect of dilutive securities: | ||||
Effect of dilutive securities (in shares) | 0 | 110,761 | 0 | 113,515 |
Performance share units | ||||
Effect of dilutive securities: | ||||
Effect of dilutive securities (in shares) | 0 | 11,602 | 0 | 5,619 |
Restricted share units | ||||
Effect of dilutive securities: | ||||
Effect of dilutive securities (in shares) | 0 | 1,232 | 0 | 1,082 |
Net Income (Loss) Per Share - A
Net Income (Loss) Per Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 829,080 | 35,106 | 555,427 | 15,088 |
Share Repurchase Programs - Add
Share Repurchase Programs - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 38 Months Ended | |||
Sep. 30, 2017 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | Sep. 30, 2017 | Aug. 05, 2014 | |
Class of Stock [Line Items] | ||||||
Amount authorized to be repurchased under share repurchase programs | $ 370,000,000 | |||||
Total shares repurchased, value | $ 269,900,000 | $ 269,900,000 | $ 269,900,000 | |||
Amount remaining in program | $ 100,100,000 | $ 100,100,000 | $ 100,100,000 | |||
Shares or other securities repurchased and retired during period (in shares) | 0 | 179,648 | 0 | 1,919,132 | ||
Total purchase price | $ 5,000,000 | $ 56,000,000 | ||||
Average repurchase price per share (in dollars per share) | $ 27.83 | $ 29.19 | ||||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Number of shares repurchased (in shares) | 8,064,325 | |||||
Convertible Notes | ||||||
Class of Stock [Line Items] | ||||||
Number of shares repurchased (in shares) | 0 |
Segment Data - Additional Infor
Segment Data - Additional Information (Detail) stock_unit in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($) | Sep. 24, 2016USD ($) | Sep. 30, 2017USD ($)segmentstock_unit | Sep. 24, 2016USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reporting segments | segment | 2 | ||||
Number of SKUs available for online access | stock_unit | 17 | ||||
Identifiable assets | $ 519,010 | $ 519,010 | $ 734,184 | ||
Capital expenditures | 43,314 | $ 31,228 | |||
Manufacturing | |||||
Segment Reporting Information [Line Items] | |||||
Identifiable assets | 57,400 | 57,400 | 62,300 | ||
Capital expenditures | 1,100 | 1,900 | |||
Long lived assets | 17,100 | 17,100 | $ 20,100 | ||
Depreciation and amortization expenses | $ 300 | $ 500 | $ 800 | $ 1,400 |
Segment Data - Table of Key Fin
Segment Data - Table of Key Financial Information of Company's Reporting Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | |
Revenue from External Customer [Line Items] | ||||
Net sales | $ 288,186 | $ 314,887 | $ 909,924 | $ 984,378 |
Income (loss) from operations | (108,335) | 20,273 | (260,980) | 68,259 |
Operating segments | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 303,280 | 325,434 | 950,485 | 1,011,699 |
Operating segments | Retail | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 282,408 | 301,077 | 884,599 | 946,004 |
Income (loss) from operations | 16,104 | 34,344 | 74,531 | 116,451 |
Operating segments | Manufacturing | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 20,872 | 24,357 | 65,886 | 65,695 |
Income (loss) from operations | (4,530) | (734) | (23,643) | (2,818) |
Elimination of intersegment revenues | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | (15,094) | (10,547) | (40,561) | (27,321) |
Corporate costs | ||||
Revenue from External Customer [Line Items] | ||||
Income (loss) from operations | $ (119,909) | $ (13,337) | $ (311,868) | $ (45,374) |
Segment Data - Table of Key F52
Segment Data - Table of Key Financial Information of Company's Reporting Segments, Components of Income (Loss) from Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Dec. 31, 2016 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | |
Segment Reporting [Abstract] | |||||
Goodwill impairments | $ 46,308 | $ 32,600 | $ 0 | $ 210,633 | $ 0 |
Tradename impairment | 59,405 | 0 | 59,405 | 0 | |
Nutri-Force turnaround costs | 1,676 | 0 | 16,002 | 0 | |
Store impairment charges | 287 | 197 | 4,052 | 415 | |
Distribution center closing costs | 2,257 | 0 | 2,257 | 0 | |
Cost reduction project | 0 | 2,269 | 0 | 3,761 | |
Canada stores closing costs | 0 | (906) | 0 | 1,889 | |
Super Supplements conversion costs | 0 | 0 | 0 | 1,046 | |
Reinvention strategy costs | $ 0 | $ 0 | $ 0 | $ 541 |
Fair Value of Financial Instr53
Fair Value of Financial Instruments - Schedule of Fair Value of Convertible Notes (Details) - Convertible Notes - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 107,238 | $ 132,677 |
Carrying Value | $ 125,013 | 120,874 |
Previously Reported | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 111,600 |