Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 28, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Vitamin Shoppe, Inc. | |
Entity Central Index Key | 1,360,530 | |
Current Fiscal Year End Date | --12-29 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 24,232,045 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 1,799 | $ 1,947 |
Inventories | 211,296 | 218,087 |
Prepaid expenses and other current assets | 40,283 | 39,473 |
Current assets held for sale | 22,217 | 22,625 |
Total current assets | 275,595 | 282,132 |
Property and equipment, net of accumulated depreciation and amortization of $325,328 and $334,082 in 2018 and 2017, respectively | 136,692 | 141,520 |
Other intangibles, net | 11,052 | 11,040 |
Deferred taxes | 37,203 | 37,278 |
Other long-term assets | 2,608 | 2,572 |
Noncurrent assets held for sale | 0 | 16,891 |
Total assets | 463,150 | 491,433 |
Current liabilities: | ||
Revolving credit facility | 35,000 | 12,000 |
Accounts payable | 47,633 | 46,921 |
Accrued expenses and other current liabilities | 56,958 | 62,645 |
Current liabilities held for sale | 7,222 | 5,337 |
Total current liabilities | 146,813 | 126,903 |
Convertible notes, net | 87,463 | 126,415 |
Deferred rent | 40,617 | 40,832 |
Other long-term liabilities | 1,801 | 1,916 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value; 250,000,000 shares authorized and no shares issued and outstanding at March 31, 2018 and December 30, 2017 | 0 | 0 |
Common stock, $0.01 par value; 400,000,000 shares authorized, 24,532,315 shares issued and 24,291,415 shares outstanding at March 31, 2018, and 24,220,509 shares issued and 24,021,948 shares outstanding at December 30, 2017 | 245 | 242 |
Additional paid-in capital | 83,953 | 88,823 |
Treasury stock, at cost; 240,900 shares at March 31, 2018 and 198,561 shares at December 30, 2017 | (7,195) | (7,010) |
Retained earnings | 109,453 | 113,312 |
Total stockholders’ equity | 186,456 | 195,367 |
Total liabilities and stockholders’ equity | $ 463,150 | $ 491,433 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation and amortization, property and equipment | $ 325,328 | $ 334,082 |
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) | 24,532,315 | 24,220,509 |
Common stock, shares outstanding (in shares) | 24,291,415 | 24,021,948 |
Treasury stock, shares (in shares) | 240,900 | 198,561 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Income Statement [Abstract] | ||
Net sales | $ 295,964 | $ 305,772 |
Cost of goods sold | 202,853 | 206,790 |
Gross profit | 93,111 | 98,982 |
Selling, general and administrative expenses | 89,300 | 80,141 |
Income from operations | 3,811 | 18,841 |
Gain on extinguishment of debt | 12,502 | 0 |
Interest expense, net | 2,441 | 2,412 |
Income before provision for income taxes | 13,872 | 16,429 |
Provision for income taxes | 4,215 | 6,534 |
Net income from continuing operations | 9,657 | 9,895 |
Net loss from discontinued operations, net of tax | (13,516) | (1,899) |
Net income (loss) | $ (3,859) | $ 7,996 |
Weighted average common shares outstanding | ||
Basic (in shares) | 23,294,227 | 22,828,244 |
Diluted (in shares) | 23,294,227 | 23,022,067 |
Net income from continuing operations per common share | ||
Basic (in dollars per share) | $ 0.41 | $ 0.43 |
Diluted (in dollars per share) | 0.41 | 0.43 |
Net loss from discontinued operations per common share | ||
Basic (in dollars per share) | (0.58) | (0.08) |
Diluted (in dollars per share) | (0.58) | (0.08) |
Net income (loss) per common share | ||
Basic (in dollars per share) | (0.17) | 0.35 |
Diluted (in dollars per share) | $ (0.17) | $ 0.35 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (3,859) | $ 7,996 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization of fixed and intangible assets | 11,247 | 7,828 |
Impairment charge on intangible assets | 8,174 | 0 |
Impairment charges on fixed assets | 8,742 | 0 |
Discontinued operations charge | 1,450 | 0 |
Amortization of deferred financing fees | 220 | 238 |
Gain on extinguishment of debt | (12,502) | 0 |
Amortization of debt discount on convertible notes | 1,207 | 1,178 |
Deferred income taxes | 75 | 460 |
Deferred rent | (738) | (787) |
Equity compensation expense | 875 | 1,600 |
Tax benefits on exercises of equity awards | 361 | (17) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,645) | 1,543 |
Inventories | 8,863 | 6,142 |
Prepaid expenses and other current assets | (821) | 5,870 |
Other long-term assets | (67) | 10 |
Accounts payable | 1,411 | (11,094) |
Accrued expenses and other current liabilities | (5,191) | (1,019) |
Other long-term liabilities | 407 | (49) |
Net cash provided by operating activities | 18,209 | 19,899 |
Cash flows from investing activities: | ||
Capital expenditures | (6,722) | (10,138) |
Trademarks and other intangible assets | (90) | (82) |
Net cash used in investing activities | (6,812) | (10,220) |
Cash flows from financing activities: | ||
Borrowings under revolving credit facility | 50,000 | 42,000 |
Repayments of borrowings under revolving credit facility | (27,000) | (53,000) |
Purchase of convertible notes | (34,040) | 0 |
Bank overdraft | (312) | (953) |
Proceeds from exercises of common stock options | 0 | 1,511 |
Issuance of shares under employee stock purchase plan | 108 | 161 |
Purchases of treasury stock | (185) | (7) |
Other financing activities | (117) | (137) |
Net cash used in financing activities | (11,546) | (10,425) |
Effect of exchange rate changes on cash and cash equivalents | 1 | 12 |
Net decrease in cash and cash equivalents | (148) | (734) |
Cash and cash equivalents beginning of period | 1,947 | 2,833 |
Cash and cash equivalents end of period | 1,799 | 2,099 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 581 | 274 |
Income taxes paid | 78 | 120 |
Supplemental disclosures of non-cash investing activities: | ||
Liability for purchases of property and equipment | 4,094 | 10,943 |
Assets acquired under capital leases | 0 | 891 |
Assets acquired under tenant incentives | $ 0 | $ 2,986 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
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 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 consolidated financial statements as of March 31, 2018 and April 1, 2017 are unaudited. The consolidated balance sheet as of December 30, 2017 was derived from our audited financial statements and has been restated to reflect assets and liabilities held for sale. Refer to Note 2., "Discontinued Operations" for additional information. As a result of the discontinued operations, the Company currently operates through one business segment. 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 30, 2017 , as filed with the Securities and Exchange Commission on February 27, 2018 (the “Fiscal 2017 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 period, ending on the last Saturday in December. The results for the three months ended March 31, 2018 and April 1, 2017 are each based on 13-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 February 2016, the Financial Accounting Standards Board ("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 in the process of implementing changes to its business processes, systems and controls to support the adoption of ASU 2016-02 in Fiscal 2019. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations The Company has been exploring strategic alternatives related to FDC Vitamins, LLC d/b/a Nutri-Force Nutrition ("Nutri-Force"), including the potential sale of this subsidiary of Industries, as our manufacturing operations continue to perform below expectations. During the first quarter of Fiscal 2018, the Company identified a potential buyer and terms have been negotiated between the parties. In addition, Company management has obtained approval from its Board of Directors to move forward with this transaction. The sale of Nutri-Force closed on May 7, 2018. Refer to Note 15., "Subsequent Event" for additional information. As a result, as of March 31, 2018, the Company has classified certain assets and liabilities of Nutri-Force in the consolidated balance sheet as held for sale. In addition, the results of operations of Nutri-Force for the three months ended March 31, 2018 are classified as discontinued operations in the consolidated statement of operations. The consolidated balance sheet as of December 30, 2017 and the statement of operations for the three months ended April 1, 2017 have been restated to reflect the discontinued operations. Reconciliation of the Carrying Amounts of Major Classes of Assets and Liabilities of the Discontinued Operation to Total Assets and Liabilities of the Disposal Group Classified as Held for Sale That Are Presented Separately in the Balance Sheet As of As of Carrying amounts of the major classes of assets included in discontinued operations: Accounts receivable $ 7,910 $ 6,265 Inventories 14,127 16,200 Prepaid expenses and other current assets 180 160 Total current assets 22,217 22,625 Property and equipment, net — 8,513 Intangible assets, net — 8,378 Total noncurrent assets — 16,891 Total assets of the disposal group classified as held for sale $ 22,217 $ 39,516 Carrying amounts of the major classes of liabilities included in discontinued operations: Accounts payable $ 2,935 $ 2,704 Accrued liabilities 4,287 2,633 Total current liabilities of the disposal group classified as held for sale $ 7,222 $ 5,337 Reconciliation of the Major Line Items Constituting Loss of Discontinued Operations to the After-Tax Loss of Discontinued Operations That Are Presented in the Statement of Operations Three Months Ended March 31, 2018 April 1, 2017 Major classes of line items constituting pretax loss on discontinued operations: Net sales $ 5,551 $ 11,129 Cost of goods sold 3,999 11,297 Fixed assets impairment charges 7,236 — Gross loss (5,684 ) (168 ) Selling, general and administrative expenses 1,394 3,064 Intangible assets and fixed assets impairment charges 8,978 — Discontinued operations charge (1) 1,450 — Loss from operations (17,506 ) (3,232 ) Benefit for income taxes (3,990 ) (1,333 ) Net loss $ (13,516 ) $ (1,899 ) (1) Represents the additional estimated loss on the sale of the discontinued operations based on the anticipated proceeds less estimated transaction costs. Cash Flow Disclosures for Discontinued Operations Three Months Ended March 31, 2018 April 1, 2017 Cash flows provided by (used in) operating activities $ (54 ) $ 116 Cash flows used in investing activities $ (92 ) $ (351 ) Depreciation and amortization $ 769 $ 278 Capital expenditures $ 92 $ 351 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2018 | |
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): March 31, 2018 December 30, 2017 Gross Carrying Amount Accumulated Amortization Accumulated Impairment Charges Net Gross Carrying Amount Accumulated Amortization Accumulated Impairment Charges Net Intangible assets Goodwill $ 243,269 $ — $ 243,269 $ — $ 243,269 $ — $ 243,269 $ — Tradenames – Indefinite-lived 68,405 — 59,405 9,000 68,405 — 59,405 9,000 Tradenames – Definite-lived 5,482 3,430 — 2,052 5,392 3,352 — 2,040 $ 317,156 $ 3,430 $ 302,674 $ 11,052 $ 317,066 $ 3,352 $ 302,674 $ 11,040 The useful life of the Company’s definite-lived intangible assets is 10 years. The expected amortization expense on definite-lived intangible assets on the Company’s consolidated balance sheet at March 31, 2018 , is as follows (in thousands): Remainder of Fiscal 2018 $ 204 Fiscal 2019 306 Fiscal 2020 306 Fiscal 2021 306 Fiscal 2022 306 Thereafter 624 $ 2,052 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
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): March 31, 2018 December 30, 2017 Accrued salaries and related expenses $ 11,825 $ 18,094 Sales tax payable and related expenses 7,597 7,088 Deferred sales 7,160 5,710 Other accrued expenses 30,376 31,753 $ 56,958 $ 62,645 |
Credit Arrangements
Credit Arrangements | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Credit Arrangements | Credit Arrangements Convertible Senior Notes due 2020 On December 9, 2015, the Company 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 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. On March 27, 2018, the Company repurchased $45.4 million in aggregate principal amount of its Convertible Notes for an aggregate purchase price of $34.0 million , which includes accrued interest of $0.3 million . The repurchase was funded through borrowings under the Company's Revolving Credit Facility. The gain on extinguishment of the repurchased Convertible Notes was $12.5 million . The Convertible Notes consist of the following components (in thousands): March 31, 2018 December 30, 2017 Liability component: Principal $ 98,356 $ 143,750 Conversion feature (20,399 ) (24,800 ) Liability portion of debt issuance costs (3,158 ) (3,802 ) Amortization 12,664 11,267 Net carrying amount $ 87,463 $ 126,415 Equity component: Conversion feature $ 18,943 $ 24,800 Equity portion of debt issuance costs (793 ) (793 ) Deferred taxes 941 941 Net carrying amount $ 19,091 $ 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. In connection with the repurchase of Convertible Notes, the convertible note hedge transactions and the warrant transaction noted above were reduced in ratable proportion to the face amount of Convertible Notes that were repurchased. The net proceeds received by the Company from these transactions were de minimis. Revolving Credit Facility As of March 31, 2018 and December 30, 2017 , the Company had $35.0 million and $12.0 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 three months ended March 31, 2018 and April 1, 2017 was $35.0 million and $38.0 million , respectively. The unused available line of credit under the Revolving Credit Facility at March 31, 2018 was $51.1 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 three months ended March 31, 2018 and April 1, 2017 was 2.65% and 2.06% , 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 months ended March 31, 2018 and April 1, 2017 consists of the following (in thousands): Three Months Ended March 31, 2018 April 1, 2017 Amortization of debt discount on Convertible Notes $ 1,207 $ 1,178 Interest on Convertible Notes 806 818 Amortization of deferred financing fees 220 238 Interest / fees on the Revolving Credit Facility and other interest 208 178 Interest expense, net $ 2,441 $ 2,412 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company recognizes revenue from retail customers when merchandise is sold “at point of sale” in retail stores or upon delivery to a customer. Substantially all revenue from customers represents goods transferred at a point in time. The Company applied the modified retrospective method for the transition to FASB Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606). The modified retrospective method requires application of the new revenue standard only to the current year financial statements (i.e., the financial statements for the year in which the new revenue standard is first implemented). Under the modified retrospective method, an entity records a cumulative-effect adjustment on the opening balance sheet to retained earnings. The opening adjustment to retained earnings is determined on the basis of the impact of the new revenue standard's application on contracts that were not completed as of the date of initial application. The Company did not record an opening adjustment to retained earnings as the impact of the application of the new revenue standard was de minimis. Disaggregation of Revenue The Company disaggregates revenue from contracts with customers into two categories, sales fulfilled in stores and direct to consumer sales. The Company determines that disaggregating revenue into these categories achieves the disclosure objective to depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The following table contains net sales by fulfillment category (in thousands): Three Months Ended March 31, 2018 April 1, 2017 Net sales: Sales fulfilled in stores $ 257,416 $ 273,823 Direct to consumer sales 38,548 31,949 Net sales $ 295,964 $ 305,772 The following table represents net sales by major product category (in thousands): Three Months Ended March 31, 2018 April 1, 2017 Product Category Vitamins, Minerals, Herbs and Homeopathy $ 88,804 $ 86,646 Sports Nutrition 89,339 97,260 Specialty Supplements 75,422 77,965 Other 41,782 43,279 295,347 305,150 Delivery Revenue 617 622 Total net sales $ 295,964 $ 305,772 Delivery revenue represents shipping fees billed to customers which are included in net sales in the consolidated statement of operations. Contract Balances Receivables primarily consist of amounts due from debit and credit card processors and amounts due from third-party e-commerce marketplaces. These receivables balances are included in prepaid expenses and other current assets in the consolidated balance sheets. For the periods presented, the Company does not have contract assets. A contract asset would exist when an entity has a contract with a customer for which revenue has been recognized but payment is contingent on a future event other than the passage of time (e.g., unbilled receivables). Contract liabilities primarily include deferred sales related to the loyalty program, a liability for future gift card redemptions and a liability for sales in transit. These liabilities are included in accrued expenses and other current liabilities in the consolidated balance sheets. The opening and closing balances of the Company’s receivables and contract liabilities are as follows (in thousands): Receivables Contract Liabilities Balances as of December 30, 2017 $ 10,937 $ 7,511 Balances as of March 31, 2018 11,992 8,410 Increase $ 1,055 $ 899 Balances as of December 31, 2016 $ 11,012 $ 6,901 Balances as of April 1, 2017 11,756 6,398 Increase / (Decrease) $ 744 $ (503 ) The amounts of revenue recognized during the three month periods ended March 31, 2018 and April 1, 2017 that were included in the opening contract liability balances were $6.5 million and $6.0 million , respectively. This revenue consists primarily of loyalty point redemptions, the delivery of sales in transit and gift card redemptions. Performance Obligations For retail sales, the performance obligation is the transfer of retail merchandise to the customer at the retail store or at the time of delivery to the customer. Variable consideration for retail sales is primarily related to our loyalty program. Under the loyalty program, sales are deferred at the time points are earned based on the value of points that are projected to be redeemed, which are based on historical redemption data and current trends. The Company records a liability in the period points are earned with a corresponding reduction of sales. Under the current program, loyalty points are earned each calendar quarter and must be redeemed within the subsequent calendar quarter or they expire. During Fiscal 2018, the Company plans to test potential changes to the loyalty program, such as extending the redemption period on loyalty points, in order to improve the effectiveness of the program. Performance obligations are typically satisfied at the point in time when the Company transfers control of the merchandise to the customer and at such point in time the customer is able to direct the use of and obtains substantially all of the benefits from the merchandise transferred to the customer. For retail sales, payment is due at the time the customer purchases retail merchandise. For retail sales, the Company establishes a provision for estimated returns of retail products, based on historical information. The Company considers shipping and handling costs as fulfillment costs, and does not consider such activities as a separate performance obligation. When applicable, the Company is responsible for shipment and delivery of the merchandise, even when using a third-party shipping company. Significant Judgments and Estimates The Company considers control of retail products to have transferred upon delivery, at the retail location or the place of delivery, because the Company has a present right to payment at that time, the customer has legal title to the products, the Company has transferred physical possession of the products, and the customer has significant risks and rewards of ownership of the products. Under the loyalty program, the value of points projected to be redeemed is dependent on the estimated redemption rates which are based on both historical information and current trends. For retail sales in transit, the Company defers the recognition of revenue based on an estimate of the respective anticipated timing of delivery. Practical Expedients The Company has elected to use the following practical expedients affecting the measurement and recognition of revenue: Significant financing component - As substantially all of the Company’s contracts with customers have an original duration of one year or less, the Company uses the practical expedient applicable to such contacts and does not consider the time value of money. Sales taxes - Consistent with prior periods, sales taxes collected from customers are presented on a net basis and as such are excluded from revenue. Contract costs - Due to the short term duration of the Company’s contracts with customers, such incremental costs of obtaining or fulfilling a contract are recognized as an expense when incurred since the amortization period of the asset that the Company otherwise would have recognized is one year or less. Portfolio approach - For its retail contracts with customers, the Company has applied the new revenue standard to a portfolio of contracts with similar characteristics since the Company reasonably expects that the effects on the financial statements of applying this guidance to the portfolio would not differ materially from applying this guidance to the individual contracts within that portfolio. Disclosure of remaining performance obligations - Due to the short duration of its contracts with customers of one year or less, the Company has elected not to disclose the information regarding the remaining performance obligations as of the end of each reporting period or when the Company expects to recognize this revenue. |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 , there were 689,072 shares available to grant under both plans which includes 240,900 shares currently held by the Company as treasury stock. The following table summarizes restricted shares for the 2009 Plan as of March 31, 2018 and changes during the three month period then ended: Number of Unvested Restricted Shares Weighted Average Grant Date Fair Value Unvested at December 30, 2017 724,104 $ 18.65 Granted 277,852 $ 4.43 Vested (106,730 ) $ 16.62 Canceled/forfeited (5,492 ) $ 22.34 Unvested at March 31, 2018 889,734 $ 14.43 The total intrinsic value of restricted shares vested during the three months ended March 31, 2018 was $0.5 million and during the three months ended April 1, 2017 was de minimis. The following table summarizes stock options for the 2006 Plan and 2009 Plan as of March 31, 2018 and changes during the three 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 30, 2017 308,888 $ 27.74 Granted 141,777 $ 4.65 Exercised — $ — Canceled/forfeited (55,685 ) $ 15.55 Outstanding at March 31, 2018 394,980 $ 21.17 7.91 $ — Vested or expected to vest at March 31, 2018 375,248 $ 21.17 7.91 Vested and exercisable at March 31, 2018 175,248 $ 31.41 6.29 $ — No options were exercised during the three months ended March 31, 2018 . The total intrinsic value of options exercised during the three months ended April 1, 2017 was $0.7 million . The cash received from options exercised during the three months ended April 1, 2017 was $1.5 million . Stock options were not granted during the three months ended April 1, 2017 . The weighted-average grant date fair value of stock options during the three months ended March 31, 2018 was $1.76 . The fair value of each option grant was estimated on the date of grant using the Monte Carlo option-pricing model, because these awards contain a market condition based on the achievement of predetermined targets related to the share price of our common stock, with the following assumptions: Three Months Ended March 31, 2018 Expected dividend yield 0.0 % Weighted average expected volatility 42.61 % Weighted average risk-free interest rate 2.54 % Expected holding period 6.02 years The following table summarizes performance share units for the 2009 Plan as of March 31, 2018 and changes during the three month period then ended: Number of Unvested Performance Share Units Weighted Average Grant Date Fair Value Unvested at December 30, 2017 288,365 $ 22.43 Granted 526,956 $ 4.64 Vested — $ — Canceled/forfeited — $ — Unvested at March 31, 2018 815,321 $ 10.93 Performance share units granted during the three months ended March 31, 2018 shall vest on December 26, 2020 if the performance criteria are achieved. Performance share units can vest at a range of 0% to 150% based on the achievement of pre-established performance targets. The following table summarizes restricted share units for the 2009 Plan as of March 31, 2018 and changes during the three month period then ended: Number of Unvested Weighted Unvested at December 30, 2017 39,708 $ 11.90 Granted — $ — Vested (13,239 ) $ 11.90 Canceled/forfeited — $ — Unvested at March 31, 2018 26,469 $ 11.90 The total intrinsic value of restricted share units vested during the three months ended March 31, 2018 and April 1, 2017 was $0.1 million and $0.2 million , respectively. Compensation expense attributable to stock based compensation for the three months ended March 31, 2018 was approximately $0.9 million ( $0.8 million for continuing operations and $0.1 million for discontinued operations) and for the three months ended April 1, 2017 was approximately $1.6 million ( $1.5 million for continuing operations and $0.1 million for discontinued operations). As of March 31, 2018 , 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 $7.0 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 March 31, 2018 is approximately $0.7 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 three months ended March 31, 2018 , the Company purchased 42,339 shares in settlement of employees’ tax obligations for a total of $0.2 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 | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs 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. The transition of distribution operations to the Company's other distribution centers was substantially completed during Fiscal 2017. Costs related to this closure, including occupancy, severance and other expenses, for the three months ended March 31, 2018 were $2.2 million , of which approximately $1.7 million is included in cost of goods sold and approximately $0.5 million is included in selling, general and administrative expenses in the consolidated statement of operations. As of March 31, 2018, the Company's liabilities related to the closing of the North Bergen, New Jersey distribution center are approximately $0.1 million consisting primarily of severance expense. |
Advertising Costs
Advertising Costs | 3 Months Ended |
Mar. 31, 2018 | |
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 $6.4 million and $5.9 million for the three months ended March 31, 2018 and April 1, 2017 , respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Tax Cut and Jobs Act of 2017 (“U.S. Tax Reform”) was enacted on December 22, 2017, reducing the statutory federal income tax rate from 35% to 21%, effective January 1, 2018. As required, the Company determined a reasonable estimate for certain effects of U.S. Tax Reform and recorded that estimate as a provisional amount. Due to the Company’s deferred tax position being a net asset, the provisional remeasurement of the deferred tax assets and liabilities resulted in a $15.3 million discrete tax expense which lowered the effective tax rate by 5.6% in Fiscal 2017. Our federal income tax expense for periods beginning in Fiscal 2018 is based on the new tax rate. The provisional remeasurement amount is anticipated to change as data becomes available allowing more accurate scheduling of the deferred tax assets and liabilities primarily related to depreciable assets, inventory, employee compensation and commissions. There have been no updates to the provisional amounts during the three months ended March 31, 2018. Additionally on December 22, 2017, the Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 118, which addresses how a company recognizes provisional amounts when a company does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete its accounting for the effect of the changes in the U.S. Tax Reform. The measurement period ends when a company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. As such, the Company is reporting the impacts of the U.S. Tax Reform provisionally based upon reasonable estimates. As of March 31, 2018 the impacts are not yet finalized as they are dependent on factors and analysis not yet known or fully completed, including but not limited to, depreciation, additional effect of the rate change on the ending deferred balances and the issuance of additional guidance, as well as our ongoing analysis of the U.S Tax Reform. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 3 Months Ended |
Mar. 31, 2018 | |
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, unvested restricted share units and warrants. 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 March 31, 2018 April 1, 2017 Numerator: Net income from continuing operations $ 9,657 $ 9,895 Net loss from discontinued operations (13,516 ) (1,899 ) Net income (loss) $ (3,859 ) $ 7,996 Denominator: Basic weighted average common shares outstanding 23,294,227 22,828,244 Effect of dilutive securities (a): Stock options — 36,299 Restricted shares — 140,564 Performance share units — 12,749 Restricted share units — 4,211 Diluted weighted average common shares outstanding 23,294,227 23,022,067 Basic net income from continuing operations per common share $ 0.41 $ 0.43 Diluted net income from continuing operations per common share $ 0.41 $ 0.43 Basic net loss from discontinued operations per common share $ (0.58 ) $ (0.08 ) Diluted net loss from discontinued operations per common share $ (0.58 ) $ (0.08 ) Basic net income (loss) per common share $ (0.17 ) $ 0.35 Diluted net income (loss) per common share $ (0.17 ) $ 0.35 (a) For the three months ended March 31, 2018 , 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 March 31, 2018 and April 1, 2017 in the amount of 1,433,053 shares and 45,567 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 months ended March 31, 2018 and April 1, 2017 as the Company’s average stock price from the date of issuance of the Convertible Notes through March 31, 2018 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 | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Share Repurchase Programs | Share Repurchase Programs Beginning in August 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 March 31, 2018 , 8,064,325 shares of common stock pursuant to these programs, and 45,394 Convertible Notes, have been repurchased for a total of $304.0 million . There is approximately $66.0 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 of the Company were repurchased under these programs during both of the three month periods ended March 31, 2018 and April 1, 2017 . On March 27, 2018, the Company repurchased $45.4 million in aggregate principal amount of its Convertible Notes for an aggregate purchase price of $34.0 million , which includes accrued interest of $0.3 million . Refer to Note 5., "Credit Arrangements" for additional information. |
Legal Proceedings
Legal Proceedings | 3 Months Ended |
Mar. 31, 2018 | |
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. The lawsuit seeks remedies under the Securities Exchange Act of 1934, including monetary damages, alleging that the defendants made false and misleading statements regarding the Company's reported goodwill, initiatives designed to improve the Company's financial performance, the Company’s profitability trends, and its financial results. We believe this lawsuit is without merit, and we are vigorously defending the lawsuit. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
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, contract liabilities 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): March 31, 2018 December 30, 2017 Fair Value $ 72,488 $ 91,612 Carrying Value (1) 87,463 126,415 (1) Represents the net carrying amount of the liability component of the Convertible Notes. The Company repurchased a portion of its Convertible Notes during the three months ended March 31, 2018. Refer to Note 5., "Credit Arrangements" for additional information. 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). Intangible assets and 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. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event Divestiture of Nutri-Force On May 7, 2018, the Company sold certain assets, including the Betancourt Nutrition® brand, and liabilities of Nutri-Force to Arizona Nutritional Supplements, LLC ("ANS"). Proceeds from the sale, net of transaction costs, were approximately $15.0 million and are subject to a working capital adjustment. In connection with the sale, the parties executed a transition services agreement for an initial term of six months whereby the Company agreed to provide services to operate the manufacturing facilities in Miami Lakes, Florida and to transition the production of products to ANS facilities. In addition, the parties executed supply agreements in which the Company has agreed to purchase a total of $53.0 million annually of its private label products and Betancourt Nutrition® brand products from ANS for a term of five years. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
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 February 2016, the Financial Accounting Standards Board ("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 in the process of implementing changes to its business processes, systems and controls to support the adoption of ASU 2016-02 in Fiscal 2019. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Reconciliation of Balance Sheet, Statement of Operations, and Cash Flow Disclosures | Reconciliation of the Carrying Amounts of Major Classes of Assets and Liabilities of the Discontinued Operation to Total Assets and Liabilities of the Disposal Group Classified as Held for Sale That Are Presented Separately in the Balance Sheet As of As of Carrying amounts of the major classes of assets included in discontinued operations: Accounts receivable $ 7,910 $ 6,265 Inventories 14,127 16,200 Prepaid expenses and other current assets 180 160 Total current assets 22,217 22,625 Property and equipment, net — 8,513 Intangible assets, net — 8,378 Total noncurrent assets — 16,891 Total assets of the disposal group classified as held for sale $ 22,217 $ 39,516 Carrying amounts of the major classes of liabilities included in discontinued operations: Accounts payable $ 2,935 $ 2,704 Accrued liabilities 4,287 2,633 Total current liabilities of the disposal group classified as held for sale $ 7,222 $ 5,337 Reconciliation of the Major Line Items Constituting Loss of Discontinued Operations to the After-Tax Loss of Discontinued Operations That Are Presented in the Statement of Operations Three Months Ended March 31, 2018 April 1, 2017 Major classes of line items constituting pretax loss on discontinued operations: Net sales $ 5,551 $ 11,129 Cost of goods sold 3,999 11,297 Fixed assets impairment charges 7,236 — Gross loss (5,684 ) (168 ) Selling, general and administrative expenses 1,394 3,064 Intangible assets and fixed assets impairment charges 8,978 — Discontinued operations charge (1) 1,450 — Loss from operations (17,506 ) (3,232 ) Benefit for income taxes (3,990 ) (1,333 ) Net loss $ (13,516 ) $ (1,899 ) (1) Represents the additional estimated loss on the sale of the discontinued operations based on the anticipated proceeds less estimated transaction costs. Cash Flow Disclosures for Discontinued Operations Three Months Ended March 31, 2018 April 1, 2017 Cash flows provided by (used in) operating activities $ (54 ) $ 116 Cash flows used in investing activities $ (92 ) $ (351 ) Depreciation and amortization $ 769 $ 278 Capital expenditures $ 92 $ 351 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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): March 31, 2018 December 30, 2017 Gross Carrying Amount Accumulated Amortization Accumulated Impairment Charges Net Gross Carrying Amount Accumulated Amortization Accumulated Impairment Charges Net Intangible assets Goodwill $ 243,269 $ — $ 243,269 $ — $ 243,269 $ — $ 243,269 $ — Tradenames – Indefinite-lived 68,405 — 59,405 9,000 68,405 — 59,405 9,000 Tradenames – Definite-lived 5,482 3,430 — 2,052 5,392 3,352 — 2,040 $ 317,156 $ 3,430 $ 302,674 $ 11,052 $ 317,066 $ 3,352 $ 302,674 $ 11,040 |
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 March 31, 2018 , is as follows (in thousands): Remainder of Fiscal 2018 $ 204 Fiscal 2019 306 Fiscal 2020 306 Fiscal 2021 306 Fiscal 2022 306 Thereafter 624 $ 2,052 |
Accrued Expenses and Other Cu24
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Components of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following (in thousands): March 31, 2018 December 30, 2017 Accrued salaries and related expenses $ 11,825 $ 18,094 Sales tax payable and related expenses 7,597 7,088 Deferred sales 7,160 5,710 Other accrued expenses 30,376 31,753 $ 56,958 $ 62,645 |
Credit Arrangements (Tables)
Credit Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Components of Convertible Notes | The Convertible Notes consist of the following components (in thousands): March 31, 2018 December 30, 2017 Liability component: Principal $ 98,356 $ 143,750 Conversion feature (20,399 ) (24,800 ) Liability portion of debt issuance costs (3,158 ) (3,802 ) Amortization 12,664 11,267 Net carrying amount $ 87,463 $ 126,415 Equity component: Conversion feature $ 18,943 $ 24,800 Equity portion of debt issuance costs (793 ) (793 ) Deferred taxes 941 941 Net carrying amount $ 19,091 $ 24,948 |
Components of Interest Expense, Net | Interest expense, net for the three months ended March 31, 2018 and April 1, 2017 consists of the following (in thousands): Three Months Ended March 31, 2018 April 1, 2017 Amortization of debt discount on Convertible Notes $ 1,207 $ 1,178 Interest on Convertible Notes 806 818 Amortization of deferred financing fees 220 238 Interest / fees on the Revolving Credit Facility and other interest 208 178 Interest expense, net $ 2,441 $ 2,412 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table contains net sales by fulfillment category (in thousands): Three Months Ended March 31, 2018 April 1, 2017 Net sales: Sales fulfilled in stores $ 257,416 $ 273,823 Direct to consumer sales 38,548 31,949 Net sales $ 295,964 $ 305,772 The following table represents net sales by major product category (in thousands): Three Months Ended March 31, 2018 April 1, 2017 Product Category Vitamins, Minerals, Herbs and Homeopathy $ 88,804 $ 86,646 Sports Nutrition 89,339 97,260 Specialty Supplements 75,422 77,965 Other 41,782 43,279 295,347 305,150 Delivery Revenue 617 622 Total net sales $ 295,964 $ 305,772 |
Schedule of Opening and Closing Balances of Receivables and Contract Liabilities | The opening and closing balances of the Company’s receivables and contract liabilities are as follows (in thousands): Receivables Contract Liabilities Balances as of December 30, 2017 $ 10,937 $ 7,511 Balances as of March 31, 2018 11,992 8,410 Increase $ 1,055 $ 899 Balances as of December 31, 2016 $ 11,012 $ 6,901 Balances as of April 1, 2017 11,756 6,398 Increase / (Decrease) $ 744 $ (503 ) |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 and changes during the three 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 30, 2017 308,888 $ 27.74 Granted 141,777 $ 4.65 Exercised — $ — Canceled/forfeited (55,685 ) $ 15.55 Outstanding at March 31, 2018 394,980 $ 21.17 7.91 $ — Vested or expected to vest at March 31, 2018 375,248 $ 21.17 7.91 Vested and exercisable at March 31, 2018 175,248 $ 31.41 6.29 $ — |
Summary of Fair Value Option Grant Using Monte Carlo Option-Pricing Model | The fair value of each option grant was estimated on the date of grant using the Monte Carlo option-pricing model, because these awards contain a market condition based on the achievement of predetermined targets related to the share price of our common stock, with the following assumptions: Three Months Ended March 31, 2018 Expected dividend yield 0.0 % Weighted average expected volatility 42.61 % Weighted average risk-free interest rate 2.54 % Expected holding period 6.02 years |
Summary of Performance Share Units | The following table summarizes performance share units for the 2009 Plan as of March 31, 2018 and changes during the three month period then ended: Number of Unvested Performance Share Units Weighted Average Grant Date Fair Value Unvested at December 30, 2017 288,365 $ 22.43 Granted 526,956 $ 4.64 Vested — $ — Canceled/forfeited — $ — Unvested at March 31, 2018 815,321 $ 10.93 |
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 March 31, 2018 and changes during the three month period then ended: Number of Unvested Restricted Shares Weighted Average Grant Date Fair Value Unvested at December 30, 2017 724,104 $ 18.65 Granted 277,852 $ 4.43 Vested (106,730 ) $ 16.62 Canceled/forfeited (5,492 ) $ 22.34 Unvested at March 31, 2018 889,734 $ 14.43 |
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 March 31, 2018 and changes during the three month period then ended: Number of Unvested Weighted Unvested at December 30, 2017 39,708 $ 11.90 Granted — $ — Vested (13,239 ) $ 11.90 Canceled/forfeited — $ — Unvested at March 31, 2018 26,469 $ 11.90 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 April 1, 2017 Numerator: Net income from continuing operations $ 9,657 $ 9,895 Net loss from discontinued operations (13,516 ) (1,899 ) Net income (loss) $ (3,859 ) $ 7,996 Denominator: Basic weighted average common shares outstanding 23,294,227 22,828,244 Effect of dilutive securities (a): Stock options — 36,299 Restricted shares — 140,564 Performance share units — 12,749 Restricted share units — 4,211 Diluted weighted average common shares outstanding 23,294,227 23,022,067 Basic net income from continuing operations per common share $ 0.41 $ 0.43 Diluted net income from continuing operations per common share $ 0.41 $ 0.43 Basic net loss from discontinued operations per common share $ (0.58 ) $ (0.08 ) Diluted net loss from discontinued operations per common share $ (0.58 ) $ (0.08 ) Basic net income (loss) per common share $ (0.17 ) $ 0.35 Diluted net income (loss) per common share $ (0.17 ) $ 0.35 (a) For the three months ended March 31, 2018 , due to a loss for the period, no incremental shares are included because the effect would be anti-dilutive. |
Fair Value of Financial Instr29
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Convertible Notes | The Company's financial instruments also include its Convertible Notes (in thousands): March 31, 2018 December 30, 2017 Fair Value $ 72,488 $ 91,612 Carrying Value (1) 87,463 126,415 (1) Represents the net carrying amount of the liability component of the Convertible Notes. The Company repurchased a portion of its Convertible Notes during the three months ended March 31, 2018. Refer to Note 5., "Credit Arrangements" for additional information. |
Discontinued Operations - Reco
Discontinued Operations - Reconciliation of Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 30, 2017 |
Carrying amounts of the major classes of assets included in discontinued operations: | ||
Total current assets | $ 22,217 | $ 22,625 |
Total noncurrent assets | 0 | 16,891 |
Carrying amounts of the major classes of liabilities included in discontinued operations: | ||
Total current liabilities of the disposal group classified as held for sale | 7,222 | 5,337 |
Nutri-Force | Held for sale | ||
Carrying amounts of the major classes of assets included in discontinued operations: | ||
Accounts receivable | 7,910 | 6,265 |
Inventories | 14,127 | 16,200 |
Prepaid expenses and other current assets | 180 | 160 |
Total current assets | 22,217 | 22,625 |
Property and equipment, net | 0 | 8,513 |
Intangible assets, net | 0 | 8,378 |
Total noncurrent assets | 0 | 16,891 |
Total assets of the disposal group classified as held for sale | 22,217 | 39,516 |
Carrying amounts of the major classes of liabilities included in discontinued operations: | ||
Accounts payable | 2,935 | 2,704 |
Accrued liabilities | 4,287 | 2,633 |
Total current liabilities of the disposal group classified as held for sale | $ 7,222 | $ 5,337 |
Discontinued Operations - Recon
Discontinued Operations - Reconciliation of Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Major classes of line items constituting pretax loss on discontinued operations: | ||
Discontinued operations charge | $ 1,450 | $ 0 |
Net loss | (13,516) | (1,899) |
Nutri-Force | Held for sale | ||
Major classes of line items constituting pretax loss on discontinued operations: | ||
Net sales | 5,551 | 11,129 |
Cost of goods sold | 3,999 | 11,297 |
Fixed assets impairment charges | 7,236 | 0 |
Gross loss | (5,684) | (168) |
Selling, general and administrative expenses | 1,394 | 3,064 |
Intangible assets and fixed assets impairment charges | 8,978 | 0 |
Discontinued operations charge | 1,450 | 0 |
Loss from operations | (17,506) | (3,232) |
Benefit for income taxes | (3,990) | (1,333) |
Net loss | $ (13,516) | $ (1,899) |
Discontinued Operations - Cash
Discontinued Operations - Cash Flow Disclosures for Discontinued Operations (Details) - Nutri-Force - Held for sale - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash flows provided by (used in) operating activities | $ (54) | $ 116 |
Cash flows used in investing activities | (92) | (351) |
Depreciation and amortization | 769 | 278 |
Capital expenditures | $ 92 | $ 351 |
Goodwill and Intangible Asset33
Goodwill and Intangible Assets - Schedule of Goodwill and Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 30, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill, Gross Carrying Amount | $ 243,269 | $ 243,269 |
Goodwill, Accumulated Impairment Charges | 243,269 | 243,269 |
Goodwill, Net | 0 | 0 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Accumulated Amortization | 3,430 | 3,352 |
Intangible assets, Definite-lived, Net | 2,052 | |
Goodwill and Intangible Assets, Gross Carrying Amount | 317,156 | 317,066 |
Goodwill and Intangible Assets, Accumulated Impairment Charges | 302,674 | 302,674 |
Goodwill and Intangible Assets, Net | 11,052 | 11,040 |
Tradenames | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets, Tradenames - Indefinite-lived, Gross Carrying Amount | 68,405 | 68,405 |
Intangible assets, Tradenames - Indefinite-lived, Accumulated Impairment Charges | 59,405 | 59,405 |
Intangible assets, Tradenames - Indefinite-lived, Net | 9,000 | 9,000 |
Tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Definite-lived, Gross Carrying Amount | 5,482 | 5,392 |
Intangible assets, Accumulated Amortization | 3,430 | 3,352 |
Intangible assets, Definite-lived, Accumulated Impairment Charges | 0 | 0 |
Intangible assets, Definite-lived, Net | $ 2,052 | $ 2,040 |
Goodwill and Intangible Asset34
Goodwill and Intangible Assets - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Useful lives of definite-lived intangible assets, years | 10 years |
Goodwill and Intangible Asset35
Goodwill and Intangible Assets - Expected Amortization Expense on Definite-Lived Intangible Assets (Detail) $ in Thousands | Mar. 31, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of Fiscal 2018 | $ 204 |
Fiscal 2,019 | 306 |
Fiscal 2,020 | 306 |
Fiscal 2,021 | 306 |
Fiscal 2,022 | 306 |
Thereafter | 624 |
Intangible assets, Definite-lived, Net | $ 2,052 |
Accrued Expenses and Other Cu36
Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 30, 2017 |
Payables and Accruals [Abstract] | ||
Accrued salaries and related expenses | $ 11,825 | $ 18,094 |
Sales tax payable and related expenses | 7,597 | 7,088 |
Deferred sales | 7,160 | 5,710 |
Other accrued expenses | 30,376 | 31,753 |
Accrued expenses and other current liabilities | $ 56,958 | $ 62,645 |
Credit Arrangements - Additiona
Credit Arrangements - Additional Information (Detail) - USD ($) | Mar. 27, 2018 | Dec. 09, 2015 | Mar. 31, 2018 | Apr. 01, 2017 | Dec. 30, 2017 |
Debt Instrument [Line Items] | |||||
Gain on extinguishment of repurchased debt | $ 12,502,000 | $ 0 | |||
Outstanding debt | 35,000,000 | $ 12,000,000 | |||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Outstanding debt | 35,000,000 | 12,000,000 | |||
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 | 35,000,000 | $ 38,000,000 | |||
Revolving Credit Facility, unused available line of credit | $ 51,100,000 | ||||
Weighted average interest rate | 2.65% | 2.06% | |||
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 | $ 98,356,000 | $ 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% | ||||
Aggregate principal amount of debt repurchased | $ 45,400,000 | ||||
Aggregate purchase price | 34,000,000 | ||||
Accrued interest | 300,000 | ||||
Gain on extinguishment of repurchased debt | $ 12,500,000 | ||||
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 ($) | Mar. 31, 2018 | Dec. 30, 2017 | Dec. 09, 2015 |
Liability component: | |||
Net carrying amount | $ 87,463,000 | $ 126,415,000 | |
Convertible Senior Notes Due 2020 | |||
Liability component: | |||
Principal | 98,356,000 | 143,750,000 | $ 143,800,000 |
Conversion feature | (20,399,000) | (24,800,000) | |
Liability portion of debt issuance costs | (3,158,000) | (3,802,000) | |
Amortization | 12,664,000 | 11,267,000 | |
Net carrying amount | 87,463,000 | 126,415,000 | |
Equity component: | |||
Conversion feature | 18,943,000 | 24,800,000 | |
Equity portion of debt issuance costs | (793,000) | (793,000) | |
Deferred taxes | 941,000 | 941,000 | |
Net carrying amount | $ 19,091,000 | $ 24,948,000 |
Credit Arrangements - Interest
Credit Arrangements - Interest Expense, Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Debt Instrument [Line Items] | ||
Amortization of debt discount on Convertible Notes | $ 1,207 | $ 1,178 |
Amortization of deferred financing fees | 220 | 238 |
Interest expense, net | 2,441 | 2,412 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Interest / fees on Convertible Notes, Revolving Credit Facility, and other interest | 208 | 178 |
Convertible Senior Notes Due 2020 | ||
Debt Instrument [Line Items] | ||
Amortization of debt discount on Convertible Notes | 1,207 | 1,178 |
Interest / fees on Convertible Notes, Revolving Credit Facility, and other interest | $ 806 | $ 818 |
Revenue Recognition - Net Sale
Revenue Recognition - Net Sales by Fulfillment Category (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 295,964 | $ 305,772 |
Sales fulfilled in stores | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 257,416 | 273,823 |
Direct to consumer sales | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 38,548 | $ 31,949 |
Revenue Recognition - Net Sales
Revenue Recognition - Net Sales by Major Product Category (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Total net sales | $ 295,964 | $ 305,772 |
Product Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 295,347 | 305,150 |
Vitamins, Minerals, Herbs and Homeopathy | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 88,804 | 86,646 |
Sports Nutrition | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 89,339 | 97,260 |
Specialty Supplements | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 75,422 | 77,965 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 41,782 | 43,279 |
Delivery Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | $ 617 | $ 622 |
Revenue Recognition - Receivab
Revenue Recognition - Receivables and Contract Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Receivables | ||
Balances at beginning of period | $ 10,937 | $ 11,012 |
Increase / (Decrease) | 1,055 | 744 |
Balances at end of period | 11,992 | 11,756 |
Contract Liabilities | ||
Balances at beginning of period | 7,511 | 6,901 |
Increase / (Decrease) | 899 | (503) |
Balances at end of period | 8,410 | 6,398 |
Amounts of revenue recognized that were included in opening contract liability balances | $ 6,500 | $ 6,000 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018USD ($)plan$ / sharesshares | Apr. 01, 2017USD ($)shares | Dec. 30, 2017shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of equity incentive plans | plan | 2 | ||
Treasury stock (in shares) | shares | 240,900 | 198,561 | |
Options exercised (in shares) | shares | 0 | ||
Intrinsic value of options exercised | $ 700 | ||
Cash received from options exercised | $ 0 | $ 1,511 | |
Options granted (in shares) | shares | 141,777 | 0 | |
Weighted-average grant date fair value for stock options (in dollars per share) | $ / shares | $ 1.76 | ||
Compensation expense attributable to stock based compensation | $ 900 | $ 1,600 | |
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 | $ 7,000 | ||
Weighted average recognition period | 1 year 8 months 12 days | ||
Estimated value of future forfeitures | $ 700 | ||
Treasury stock purchased in settlement of employees' tax obligations (in shares) | shares | 42,339 | ||
Treasury stock purchased in settlement of employees' tax obligations, value | $ 200 | ||
Continuing Operations | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense attributable to stock based compensation | 800 | 1,500 | |
Discontinued Operations | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense attributable to stock based compensation | $ 100 | 100 | |
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 | 689,072 | ||
Treasury stock (in shares) | shares | 240,900 | ||
Restricted shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of shares vested | $ 500 | 0 | |
Performance share units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 0.00% | ||
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 | $ 200 |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Restricted Shares, Performance Share Units, and Restricted Share Units (Detail) | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Restricted shares | |
Number of Unvested Shares | |
Unvested at beginning of period (in shares) | shares | 724,104 |
Granted (in shares) | shares | 277,852 |
Vested (in shares) | shares | (106,730) |
Canceled/forfeited (in shares) | shares | (5,492) |
Unvested at end of period (in shares) | shares | 889,734 |
Weighted Average Grant Date Fair Value | |
Unvested at beginning of period (in dollars per share) | $ / shares | $ 18.65 |
Granted (in dollars per share) | $ / shares | 4.43 |
Vested (in dollars per share) | $ / shares | 16.62 |
Canceled/forfeited (in dollars per share) | $ / shares | 22.34 |
Unvested at end of period (in dollars per share) | $ / shares | $ 14.43 |
Performance share units | |
Number of Unvested Shares | |
Unvested at beginning of period (in shares) | shares | 288,365 |
Granted (in shares) | shares | 526,956 |
Vested (in shares) | shares | 0 |
Canceled/forfeited (in shares) | shares | 0 |
Unvested at end of period (in shares) | shares | 815,321 |
Weighted Average Grant Date Fair Value | |
Unvested at beginning of period (in dollars per share) | $ / shares | $ 22.43 |
Granted (in dollars per share) | $ / shares | 4.64 |
Vested (in dollars per share) | $ / shares | 0 |
Canceled/forfeited (in dollars per share) | $ / shares | 0 |
Unvested at end of period (in dollars per share) | $ / shares | $ 10.93 |
Restricted share units | |
Number of Unvested Shares | |
Unvested at beginning of period (in shares) | shares | 39,708 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (13,239) |
Canceled/forfeited (in shares) | shares | 0 |
Unvested at end of period (in shares) | shares | 26,469 |
Weighted Average Grant Date Fair Value | |
Unvested at beginning of period (in dollars per share) | $ / shares | $ 11.90 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 11.90 |
Canceled/forfeited (in dollars per share) | $ / shares | 0 |
Unvested at end of period (in dollars per share) | $ / shares | $ 11.90 |
Stock Based Compensation - Su45
Stock Based Compensation - Summary of Stock Options (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Number of Options | ||
Outstanding at beginning of period (in shares) | 308,888 | |
Granted (in shares) | 141,777 | 0 |
Exercised (in shares) | 0 | |
Canceled/forfeited (in shares) | (55,685) | |
Outstanding at end of period (in shares) | 394,980 | |
Vested or expected to vest (in shares) | 375,248 | |
Vested and exercisable (in shares) | 175,248 | |
Weighted Average Exercise Price | ||
Outstanding at beginning of period (in dollars per share) | $ 27.74 | |
Granted (in dollars per share) | 4.65 | |
Exercised (in dollars per share) | 0 | |
Canceled/forfeited (in dollars per share) | 15.55 | |
Outstanding at end of period (in dollars per share) | 21.17 | |
Vested or expected to vest (in dollars per share) | 21.17 | |
Vested and exercisable (in dollars per share) | $ 31.41 | |
Outstanding, Weighted Average Remaining Contractual Life (years) | 7 years 10 months 28 days | |
Vested or expected to vest, Weighted Average Remaining Contractual Life (years) | 7 years 10 months 28 days | |
Vested and exercisable, Weighted Average Remaining Contractual Life (years) | 6 years 3 months 15 days | |
Outstanding, Aggregate Intrinsic Value | $ 0 | |
Vested and exercisable, Aggregate Intrinsic Value | $ 0 |
Stock Based Compensation - Su46
Stock Based Compensation - Summary of Fair Value Option Grant Using Monte Carlo Option-Pricing Model (Detail) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Expected dividend yield | 0.00% |
Weighted average expected volatility | 42.61% |
Weighted average risk-free interest rate | 2.54% |
Expected holding period | 6 years 7 days |
Restructuring Costs - Narrative
Restructuring Costs - Narrative (Details) - Closing of North Bergen, New Jersey Distribution Center $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Liabilities related to closing | $ 0.1 |
Severance and Other Expenses | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | 2.2 |
Severance and Other Expenses | Cost of Goods Sold | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | 1.7 |
Severance and Other Expenses | Selling, General and Administrative Expenses | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | $ 0.5 |
Advertising Costs - Additional
Advertising Costs - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Other Income and Expenses [Abstract] | ||
Advertising expense | $ 6.4 | $ 5.9 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | 12 Months Ended |
Dec. 30, 2017USD ($) | |
Income Tax Disclosure [Abstract] | |
Tax expense resulting from the change in valuation of deferred tax assets and liabilities under U.S. Tax Reform | $ 15.3 |
Decrease in effective tax rate due to revaluation of deferred tax assets and liabilities | 5.60% |
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 | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Numerator: | ||
Net income from continuing operations | $ 9,657 | $ 9,895 |
Net loss from discontinued operations | (13,516) | (1,899) |
Net income (loss) | $ (3,859) | $ 7,996 |
Denominator: | ||
Basic weighted average common shares outstanding (in shares) | 23,294,227 | 22,828,244 |
Effect of dilutive securities: | ||
Effect of dilutive securities (in shares) | 0 | |
Diluted weighted average common shares outstanding (in shares) | 23,294,227 | 23,022,067 |
Basic net income from continuing operations per common share (in dollars per share) | $ 0.41 | $ 0.43 |
Diluted net income from continuing operations per common share (in dollars per share) | 0.41 | 0.43 |
Basic net loss from discontinued operations per common share (in dollars per share) | (0.58) | (0.08) |
Diluted net loss from discontinued operations per common share (in dollars per share) | (0.58) | (0.08) |
Basic net income (loss) per common share (in dollars per share) | (0.17) | 0.35 |
Diluted net income (loss) per common share (in dollars per share) | $ (0.17) | $ 0.35 |
Stock options | ||
Effect of dilutive securities: | ||
Effect of dilutive securities (in shares) | 0 | 36,299 |
Restricted shares | ||
Effect of dilutive securities: | ||
Effect of dilutive securities (in shares) | 0 | 140,564 |
Performance share units | ||
Effect of dilutive securities: | ||
Effect of dilutive securities (in shares) | 0 | 12,749 |
Restricted share units | ||
Effect of dilutive securities: | ||
Effect of dilutive securities (in shares) | 0 | 4,211 |
Net Income (Loss) Per Share - A
Net Income (Loss) Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 1,433,053 | 45,567 |
Share Repurchase Programs - Add
Share Repurchase Programs - Additional Information (Detail) - USD ($) | 3 Months Ended | 43 Months Ended | |||
Mar. 31, 2018 | Apr. 01, 2017 | Mar. 31, 2018 | Mar. 27, 2018 | Aug. 31, 2014 | |
Class of Stock [Line Items] | |||||
Amount authorized to be repurchased under share repurchase programs | $ 370,000,000 | ||||
Total shares repurchased, value | $ 304,000,000 | $ 304,000,000 | |||
Amount remaining in program | $ 66,000,000 | $ 66,000,000 | |||
Shares repurchased during period (in shares) | 0 | 0 | |||
Convertible Senior Notes Due 2020 | |||||
Class of Stock [Line Items] | |||||
Aggregate principal amount of debt repurchased | $ 45,400,000 | ||||
Aggregate purchase price | 34,000,000 | ||||
Accrued interest | $ 300,000 | ||||
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) | 45,394 |
Fair Value of Financial Instr53
Fair Value of Financial Instruments - Schedule of Fair Value of Convertible Notes (Details) - Convertible Notes - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 30, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 72,488 | $ 91,612 |
Carrying Value | $ 87,463 | $ 126,415 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event - Discontinued Operations, Held-for-sale or Disposed of by Sale - Betancourt Nutrition and Nutri-Force $ in Millions | May 07, 2018USD ($) |
Subsequent Event [Line Items] | |
Proceeds from sale, net of transaction costs | $ 15 |
Transition services agreement term | 6 months |
Supply agreements, amount agreed to purchase annually | $ 53 |
Supply agreements, term | 5 years |