Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 30, 2023 | May 01, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-38070 | |
Entity Registrant Name | Floor & Decor Holdings, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-3730271 | |
Entity Address, Address Line One | 2500 Windy Ridge Parkway SE | |
Entity Address, City or Town | Atlanta, | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30339 | |
City Area Code | (404) | |
Local Phone Number | 471-1634 | |
Title of 12(b) Security | Class A common stock, $0.001 par value per share | |
Trading Symbol | FND | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 106,271,329 | |
Entity Central Index Key | 0001507079 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-28 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 30, 2023 | Dec. 29, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 5,034 | $ 9,794 |
Income taxes receivable | 0 | 7,325 |
Receivables, net | 87,992 | 94,732 |
Inventories, net | 1,181,147 | 1,292,336 |
Prepaid expenses and other current assets | 54,300 | 53,298 |
Total current assets | 1,328,473 | 1,457,485 |
Fixed assets, net | 1,344,987 | 1,258,056 |
Right-of-use assets | 1,231,509 | 1,205,636 |
Intangible assets, net | 151,590 | 152,353 |
Goodwill | 255,473 | 255,473 |
Deferred income tax assets, net | 14,073 | 11,265 |
Other assets | 9,088 | 10,974 |
Total long-term assets | 3,006,720 | 2,893,757 |
Total assets | 4,335,193 | 4,351,242 |
Current liabilities: | ||
Current portion of term loan | 2,103 | 2,103 |
Current portion of lease liabilities | 113,798 | 105,693 |
Trade accounts payable | 572,475 | 590,883 |
Accrued expenses and other current liabilities | 285,557 | 298,019 |
Income taxes payable | 18,178 | 0 |
Deferred revenue | 14,418 | 10,060 |
Total current liabilities | 1,006,529 | 1,006,758 |
Term loan | 195,248 | 195,351 |
Revolving line of credit | 106,500 | 210,200 |
Lease liabilities | 1,251,567 | 1,227,507 |
Deferred income tax liabilities, net | 36,816 | 41,520 |
Other liabilities | 10,116 | 12,730 |
Total long-term liabilities | 1,600,247 | 1,687,308 |
Total liabilities | 2,606,776 | 2,694,066 |
Commitments and contingencies (Note 5) | ||
Capital stock: | ||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding at March 30, 2023 and December 29, 2022 | 0 | 0 |
Additional paid-in capital | 482,878 | 482,312 |
Accumulated other comprehensive income, net | 3,488 | 4,337 |
Retained earnings | 1,241,945 | 1,170,421 |
Total stockholders’ equity | 1,728,417 | 1,657,176 |
Total liabilities and stockholders’ equity | 4,335,193 | 4,351,242 |
Class A Common Stock | ||
Capital stock: | ||
Common stock | 106 | 106 |
Class B Common Stock | ||
Capital stock: | ||
Common stock | 0 | 0 |
Class C Common Stock | ||
Capital stock: | ||
Common stock | $ 0 | $ 0 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 30, 2023 | Dec. 29, 2022 |
Stockholders’ equity | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Class A Common Stock | ||
Stockholders’ equity | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 450,000,000 | 450,000,000 |
Common stock, shares issued (in shares) | 106,271,016 | 106,150,661 |
Common stock, shares outstanding (in shares) | 106,271,016 | 106,150,661 |
Class B Common Stock | ||
Stockholders’ equity | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
Class C Common Stock | ||
Stockholders’ equity | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Net sales | $ 1,122,052 | $ 1,028,734 |
Cost of sales | 652,934 | 620,676 |
Gross profit | 469,118 | 408,058 |
Operating expenses: | ||
Selling and store operating | 303,671 | 249,500 |
General and administrative | 61,911 | 54,645 |
Pre-opening | 8,020 | 9,941 |
Total operating expenses | 373,602 | 314,086 |
Operating income | 95,516 | 93,972 |
Interest expense, net | 4,862 | 1,162 |
Income before income taxes | 90,654 | 92,810 |
Income tax expense | 19,130 | 21,859 |
Net income | 71,524 | 70,951 |
Change in fair value of hedge instruments, net of tax | (849) | 1,554 |
Total comprehensive income | $ 70,675 | $ 72,505 |
Basic earnings per share (in dollars per share) | $ 0.67 | $ 0.67 |
Diluted earnings per share (in dollars per share) | $ 0.66 | $ 0.66 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Class A Common Stock | Common Stock Class A Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Retained Earnings |
Beginning balance (in shares) at Dec. 30, 2021 | 105,761,000 | |||||
Beginning balance at Dec. 30, 2021 | $ 1,323,199 | $ 106 | $ 450,332 | $ 535 | $ 872,226 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation expense | 5,980 | 5,980 | ||||
Exercise of stock options (in shares) | 32,000 | |||||
Exercise of stock options | 577 | 577 | ||||
Issuance of common stock upon vesting of restricted stock units (in shares) | 47,000 | |||||
Shares issued under employee stock purchase plan (in shares) | 21,000 | |||||
Shares issued under employee stock purchase plan | 1,963 | 1,963 | ||||
Common stock redeemed for tax liability (in shares) | (19,000) | |||||
Common stock redeemed for tax liability | (1,807) | (1,807) | ||||
Other comprehensive gain (loss), net of tax | 1,554 | 1,554 | ||||
Net income | 70,951 | 70,951 | ||||
Ending balance (in shares) at Mar. 31, 2022 | 105,842,000 | |||||
Ending balance at Mar. 31, 2022 | 1,402,417 | $ 106 | 457,045 | 2,089 | 943,177 | |
Beginning balance (in shares) at Dec. 29, 2022 | 106,150,661 | 106,151,000 | ||||
Beginning balance at Dec. 29, 2022 | 1,657,176 | $ 106 | 482,312 | 4,337 | 1,170,421 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation expense | $ 6,741 | 6,741 | ||||
Exercise of stock options (in shares) | 79,452 | 79,000 | ||||
Exercise of stock options | $ 2,130 | 2,130 | ||||
Issuance of common stock upon vesting of restricted stock units (in shares) | 117,000 | |||||
Shares issued under employee stock purchase plan (in shares) | 43,000 | |||||
Shares issued under employee stock purchase plan | 2,558 | 2,558 | ||||
Common stock redeemed for tax liability (in shares) | (119,000) | |||||
Common stock redeemed for tax liability | (10,863) | (10,863) | ||||
Other comprehensive gain (loss), net of tax | (849) | (849) | ||||
Net income | 71,524 | 71,524 | ||||
Ending balance (in shares) at Mar. 30, 2023 | 106,271,016 | 106,271,000 | ||||
Ending balance at Mar. 30, 2023 | $ 1,728,417 | $ 106 | $ 482,878 | $ 3,488 | $ 1,241,945 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2023 | Mar. 31, 2022 | |
Operating activities | ||
Net income | $ 71,524 | $ 70,951 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 46,352 | 34,613 |
Stock-based compensation expense | 6,741 | 5,980 |
Change in fair value of contingent earn-out liabilities | 1,434 | 364 |
Deferred income taxes | (7,211) | 237 |
Interest cap derivative contracts | 28 | 29 |
Loss on asset impairments and disposals, net | (177) | 0 |
Changes in operating assets and liabilities, net of effects of acquisition: | ||
Receivables, net | 6,740 | (16,291) |
Inventories, net | 111,189 | (141,363) |
Trade accounts payable | 47,176 | 27,661 |
Accrued expenses and other current liabilities | (68,733) | (3,969) |
Income taxes | 25,495 | 19,842 |
Deferred revenue | 4,358 | 7,529 |
Other, net | 5,364 | (8,916) |
Net cash provided by (used in) operating activities | 250,280 | (3,333) |
Investing activities | ||
Purchases of fixed assets | (139,398) | (100,904) |
Acquisition, net of cash acquired | 0 | (490) |
Net cash used in investing activities | (139,398) | (101,394) |
Financing activities | ||
Payments on term loans | (526) | (1,051) |
Borrowings on revolving line of credit | 215,400 | 0 |
Payments on revolving line of credit | (319,100) | 0 |
Payments of contingent earn-out liabilities | (5,241) | (2,571) |
Proceeds from exercise of stock options | 2,130 | 577 |
Proceeds from employee stock purchase plan | 2,558 | 1,963 |
Tax payments for stock-based compensation awards | (10,863) | (1,807) |
Net cash used in financing activities | (115,642) | (2,889) |
Net decrease in cash and cash equivalents | (4,760) | (107,616) |
Cash and cash equivalents, beginning of the period | 9,794 | 139,444 |
Cash and cash equivalents, end of the period | 5,034 | 31,828 |
Supplemental disclosures of cash flow information | ||
Buildings and equipment acquired under operating leases | 55,701 | 61,180 |
Cash paid for interest, net of capitalized interest | 4,692 | 1,099 |
Cash paid for income taxes, net of refunds | 1,651 | 1,763 |
Fixed assets accrued at the end of the period | $ 109,161 | $ 104,230 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Nature of Business Floor & Decor Holdings, Inc., together with its subsidiaries (the “Company,” “we,” “our,” or “us”) is a multi-channel specialty retailer and commercial flooring distributor. The Company offers a broad assortment of in-stock hard-surface flooring, including tile, wood, laminate, vinyl, and natural stone along with decorative accessories and wall tile, installation materials, and adjacent categories at everyday low prices. Our stores appeal to a variety of customers, including professional installers and commercial businesses (“Pro”), do it yourself customers (“DIY”), and buy it yourself customers who buy our products for professional installation (“BIY”). We operate within one reportable segment. As of March 30, 2023, the Company, through its wholly owned subsidiary, Floor and Decor Outlets of America, Inc. (“F&D” or “Outlets”), operates 194 warehouse-format stores, which average 79,000 square feet, and five small-format standalone design studios in 36 states, as well as four distribution centers and an e-commerce site, FloorandDecor.com. Substantially all of the Company’s operating assets and liabilities are held by Outlets. Fiscal Year The Company’s fiscal year is the 52- or 53-week period ending on the Thursday on or preceding December 31st. The fiscal year ending December 28, 2023 (“fiscal 2023”) and the fiscal year ended December 29, 2022 (“fiscal 2022”) include 52 weeks. 52-week fiscal years consist of thirteen-week periods in each quarter of the fiscal year. When a 53-week fiscal year occurs, we report the additional week at the end of the fiscal fourth quarter. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information. The Condensed Consolidated Balance Sheet as of December 29, 2022 has been derived from the audited Consolidated Balance Sheet for the fiscal year then ended. The interim condensed consolidated financial statements should be read together with the audited consolidated financial statements and related footnote disclosures included in the Company’s Annual Report on Form 10-K for fiscal 2022, filed with the Securities and Exchange Commission (the “SEC”) on February 23, 2023 (the “Annual Report”). Management believes the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments considered necessary for a fair statement of results for the interim periods presented. Results of operations for the thirteen weeks ended March 30, 2023 are not necessarily indicative of the results to be expected for the full year. Summary of Significant Accounting Policies There were no significant changes to our Significant Accounting Policies as disclosed in the Annual Report. For more information regarding our Significant Accounting Policies and Estimates, see the “Summary of Significant Accounting Policies” section of “Item 8. Financial Statements and Supplementary Data” of our Annual Report. Recently Adopted Accounting Pronouncements Supplier Finance Programs. In September 2022, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2022-04, “Liabilities - Supplier Finance Programs (Subtopic 405-50).” The ASU requires disclosure of the key terms of outstanding supply chain finance programs and a rollforward of the related amounts due to vendors participating in these programs. The adoption of ASU 2022-04 did not affect the Company’s financial position, results of operations, or cash flows as the standard only impacts financial statement footnote disclosures. The guidance is effective in the first quarter of fiscal 2023, except for a rollforward of activity within supply chain finance programs, which is effective beginning in fiscal 2024. For additional information, refer to Note 9, “Supply Chain Finance Program.” Business Combinations. In October 2021, the FASB issued ASU No. 2021-08, “ Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers .” The ASU addresses diversity and inconsistency related to the recognition and measurement of contract assets and contract liabilities acquired in a business combination and requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The Company adopted ASU No, 2021-08 in the first quarter of 2023 on a prospective basis. The adoption of ASU No. 2021-08 did not have a material impact on the Company’s consolidated financial statements or related disclosures and is only applicable to the extent that the Company has future business combinations. Recently Issued Accounting Pronouncements Leases . In March 2023, the FASB issued ASU No. 2023-01, “ Leases (Topic 842), Common Control Arrangements ”. The amendments in the ASU applying to public business entities clarifies the accounting for leasehold improvements associated with common control leases, reducing diversity in practice and providing investors with financial information that will better reflect the economics of those transactions. This guidance in ASU No. 2023-01 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, and can be applied prospectively to all new leasehold improvements, prospectively to all new and existing leasehold improvements, or retrospectively to the beginning of the period in which the entity first applied Topic 842. Early adoption of the standard is permitted, including adoption in an interim period. The adoption of ASU 2023-01 is not expected to have an impact on the Company’s consolidated financial statements or related disclosures and would only be applicable to the extent that the Company has future common control leases. |
Revenue
Revenue | 3 Months Ended |
Mar. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Net sales consist of revenue associated with contracts with customers for the sale of goods and services in amounts that reflect the consideration the Company is entitled to receive in exchange for those goods and services. Deferred Revenue & Contract Liabilities In accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers , the Company recognizes revenue when the customer obtains control of the inventory. Amounts in deferred revenue at period-end reflect orders for which the inventory was not yet ready for physical transfer to customers. Contract liabilities within the Condensed Consolidated Balance Sheets as of March 30, 2023 and December 29, 2022 primarily consisted of deferred revenue as well as amounts in accrued expenses and other current liabilities related to the Pro Premier Rewards loyalty program and unredeemed gift cards. As of March 30, 2023, contract liabilities totaled $64.9 million and included $14.4 million of deferred revenue, $36.6 million of loyalty program liabilities, and $13.9 million of unredeemed gift cards. As of December 29, 2022, contract liabilities totaled $57.0 million and included $10.1 million of deferred revenue, $33.8 million of loyalty program liabilities, and $13.1 million of unredeemed gift cards. Of the contract liabilities outstanding as of December 29, 2022, approximately $11.3 million was recognized in revenue during the thirteen weeks ended March 30, 2023. Disaggregated Revenue The Company has one reportable segment. The following table presents the net sales of each major product category (in thousands): Thirteen Weeks Ended March 30, 2023 March 31, 2022 Product Category Net Sales % of Net Sales Net Sales % of Net Sales Laminate and vinyl $ 299,378 27 % $ 282,235 27 % Tile 264,584 24 230,611 22 Installation materials and tools 202,069 18 167,845 16 Decorative accessories and wall tile 198,578 18 191,035 19 Wood 62,221 6 71,946 7 Natural stone 55,025 5 53,456 5 Adjacent categories 20,012 1 16,188 2 Other (1) 20,185 1 15,418 2 Total $ 1,122,052 100 % $ 1,028,734 100 % (1) Other includes delivery, sample, and other product revenue and adjustments for deferred revenue, sales returns reserves, and other revenue related adjustments that are not allocated on a product-level basis. |
Debt
Debt | 3 Months Ended |
Mar. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes the Company’s long-term debt as of March 30, 2023 and December 29, 2022: in thousands Maturity Date Interest Rate Per Annum at 3/30/2023 (1) March 30, 2023 December 29, 2022 Credit Facilities: Term Loan Facility February 14, 2027 6.62% Variable $ 203,973 $ 204,499 Asset-based Loan Facility (“ABL Facility”) August 4, 2027 6.03% Variable 106,500 210,200 Total secured debt at par value 310,473 414,699 Less: current maturities 2,103 2,103 Long-term debt maturities 308,370 412,596 Less: unamortized discount and debt issuance costs 6,622 7,045 Total long-term debt $ 301,748 $ 405,551 (1) The applicable interest rate for the Term Loan Facility as presented herein does not include the effect of interest rate cap agreements. Market risk associated with the Company’s long-term debt relates to the potential change in fair value and negative impact to future earnings, respectively, from a change in interest rates. The aggregate fair value of debt is based primarily on the Company’s estimates of interest rates, maturities, credit risk, and underlying collateral. The following table summarizes scheduled maturities of the Company’s debt as of March 30, 2023: in thousands Amount Thirty-nine weeks ending December 28, 2023 $ 1,577 2024 2,103 2025 2,103 2026 2,629 2027 302,061 Total minimum debt payments $ 310,473 Components of interest expense are as follows for the periods presented: Thirteen Weeks Ended in thousands March 30, 2023 March 31, 2022 Total interest costs, net of interest income $ 6,186 $ 1,875 Interest capitalized 1,324 713 Interest expense, net $ 4,862 $ 1,162 Term Loan Facility The Term Loan Facility bears interest at a rate equal to either (a) a base rate determined by reference to the highest of (1) the “Prime Rate,” (2) the U.S. federal funds rate plus 0.5% and (3) the one-month Term Secured Overnight Financing Rate (“SOFR”) plus 1.0%, or (b) Adjusted Term SOFR, plus, in each case, the Applicable Margin (each term as defined in the Term Loan Facility credit agreement). The Applicable Margin for base rate loans will be between 1.00% and 1.25%, and the Applicable Margin for SOFR loans will be between 2.00% and 2.25% (subject to a floor of 0.00%), in each case, if the Company exceeds certain leverage ratio tests. All obligations under the Term Loan Facility are secured by (1) a first-priority security interest in substantially all of the property and assets of Outlets and the other guarantors under the Term Loan Facility, with certain exceptions, and (2) a second-priority security interest in the collateral securing the ABL Facility. ABL Facility As of March 30, 2023, the Company’s ABL Facility had a maximum availability of $800.0 million with actual available borrowings limited to the sum, at the time of calculation, of (a) eligible credit card receivables multiplied by the credit card advance rate, plus (b) the cost of eligible inventory, net of inventory reserves, multiplied by the applicable appraisal percentage, plus (c) 85% of eligible net trade receivables, plus (d) all eligible cash on hand, plus (e) 100% of the amount for which the eligible letter of credit must be honored after giving effect to any draws, minus certain Availability Reserves (each component as defined in the ABL Facility). The ABL Facility is available for issuance of letters of credit and contains a sublimit of $50.0 million for standby letters of credit and commercial letters of credit combined. Available borrowings under the facility are reduced by the face amount of outstanding letters of credit. The Company’s ABL Facility allows for the Company, under certain circumstances, to increase the size of the facility by an additional amount up to $200.0 million. All obligations under the ABL Facility are secured by (1) a first-priority security interest in the cash and cash equivalents, accounts receivable, inventory, and related assets of Outlets and the other guarantors under the ABL Facility, with certain exceptions, and (2) a second-priority security interest in substantially all of the other property and assets of Outlets and the other guarantors under the Term Loan Facility. Net availability under the ABL Facility, as reduced by outstanding borrowings and fees of $106.5 million and letters of credit of $33.3 million, was $660.2 million based on financial data as of March 30, 2023. Covenants The credit agreements governing the Term Loan Facility and ABL Facility contain customary restrictive covenants, which, among other things and with certain exceptions, limit the Company’s ability to (i) incur additional indebtedness and liens in connection with such indebtedness, (ii) pay dividends and make certain other restricted payments, (iii) effect mergers or consolidations, (iv) enter into transactions with affiliates, (v) sell or dispose of property or assets, and (vi) engage in unrelated lines of business. In addition, these credit agreements subject the Company to certain reporting obligations and require that the Company satisfy certain financial covenants, including, among other things, a requirement that if borrowings under the ABL Facility exceed 90% of availability, the Company will maintain a certain fixed charge coverage ratio (defined as Consolidated EBITDA less non-financed capital expenditures and income taxes paid to consolidated fixed charges, in each case as more fully defined in the ABL Facility). The Term Loan Facility has no financial maintenance covenants. The Company is currently in compliance with all covenants under the credit agreements. Fair Value of Debt The estimated fair values and classifications within the fair value hierarchy of the Term Loan Facility and the ABL Facility were as follows as of March 30, 2023 and December 29, 2022: in thousands Fair Value Hierarchy Classification March 30, 2023 December 29, 2022 Term Loan Facility Level 3 $ 199,894 $ 196,575 ABL Facility Level 2 106,500 210,200 Total $ 306,394 $ 406,775 The Term Loan Facility fair value is classified as Level 3 within the fair value hierarchy due to the use of unobservable inputs significant to the valuation, including indicative pricing from counterparties and discounted cash flow methods. The carrying amount of borrowings under the ABL Facility approximates fair value as the ABL Facility variable interest rates are based on prevailing market rates, which are a Level 2 input. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesEffective tax rates for the thirteen weeks ended March 30, 2023 and March 31, 2022 were based on the Company’s forecasted annualized effective tax rates and were adjusted for discrete items that occurred within each period. The Company’s effective income tax rate was 21.1% and 23.6% for the thirteen weeks ended March 30, 2023 and March 31, 2022, respectively. For the thirteen weeks ended March 30, 2023 and March 31, 2022, the effective income tax rate was higher than the statutory federal income tax rate of 21.0% primarily due to state income taxes that were partially offset by tax deductions in excess of book expense related to stock-based compensation awards. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Commitments The Company accounts for leases in accordance with ASC 842, Leases . The majority of the Company’s long-term operating lease agreements are for its retail locations, distribution centers, and corporate office, which expire in various years through 2048. Most of these agreements are retail leases wherein both the land and building are leased, additionally, the Company has ground leases in which only the land is leased. The initial lease terms for the Company's retail locations, distribution centers, and corporate office typically range from 10-20 years. The majority of the Company’s leases also include options to extend, which are factored into the recognition of their respective assets and liabilities when appropriate based on management’s assessment of the probability that the options will be exercised. When readily determinable, the rate implicit in the lease is used to discount lease payments to present value; however, substantially all of the Company’s leases do not provide a readily determinable implicit rate. If the rate implicit in the lease is not readily determinable, the Company uses a third party to assist in the determination of a secured incremental borrowing rate, determined on a collateralized basis, to discount lease payments based on information available at lease commencement. The secured incremental borrowing rate is estimated based on yields obtained from Bloomberg for U.S. consumers with a BB credit rating and is adjusted for collateralization as well as inflation. As of March 30, 2023 and March 31, 2022, the Company’s weighted average discount rate was 5.5% and 5.1%, respectively. As of March 30, 2023 and March 31, 2022, the Company’s weighted average remaining lease term was approximately 12 years and 11 years, respectively. Lease Costs The table below presents components of lease expense for operating leases. Thirteen Weeks Ended in thousands Classification March 30, 2023 March 31, 2022 Fixed operating lease cost: Selling and store operating $ 38,144 $ 33,460 Cost of sales 6,258 6,501 Pre-opening 3,066 2,353 General and administrative 1,072 1,141 Total fixed operating lease cost $ 48,540 $ 43,455 Variable lease cost (1): Selling and store operating $ 14,486 $ 12,223 Cost of sales 1,119 1,419 Pre-opening 131 167 General and administrative 303 226 Total variable lease cost $ 16,039 $ 14,035 Sublease income Cost of sales (679) (680) Total operating lease cost (2) $ 63,900 $ 56,810 (1) Includes variable costs for common area maintenance, property taxes, and insurance on leased real estate. (2) Excludes short-term lease costs, which were immaterial for the thirteen weeks ended March 30, 2023 and March 31, 2022. Undiscounted Cash Flows Future minimum lease payments under non-cancelable operating leases as of March 30, 2023 were as follows: in thousands Amount Thirty-nine weeks ending December 28, 2023 $ 131,847 2024 196,087 2025 183,737 2026 172,602 2027 165,262 Thereafter 1,093,035 Total minimum lease payments (1) (2) 1,942,570 Less: amount of lease payments representing interest 577,205 Present value of future minimum lease payments 1,365,365 Less: current obligations under leases 113,798 Long-term lease obligations $ 1,251,567 (1) Future lease payments exclude approximately $246.1 million of legally binding minimum lease payments for operating leases signed but not yet commenced. (2) Operating lease payments include $201.3 million related to options to extend lease terms that are reasonably certain of being exercised. For the thirteen weeks ended March 30, 2023 and March 31, 2022, cash paid for operating leases was $46.4 million and $43.0 million, respectively. Litigation On November 15, 2021, the Company was added as a defendant in a wrongful death lawsuit, Nguyen v. Inspections Now, Inc., No. 21-DCV-287142, pending in the 434th Judicial District Court of Fort Bend County, Texas. Inspections Now, Inc.; Bestview International Company; and Bestview (Fuzhou) Import & Export Co. LTD are also named as defendants in the case. Plaintiff’s petition alleges that “wood paneling” allegedly purchased from the Company was installed in the vicinity of plaintiff’s fireplace and caught fire while the fireplace was lit. The fire consumed plaintiff’s home and resulted in injuries to plaintiff and another occupant and the death of plaintiff’s three children and mother. Plaintiff alleges product defect and failure to warn claims against the Company; product defect, failure to warn, and strict liability claims against the Bestview entities; and negligent inspection claims against Inspections Now. Plaintiff’s petition seeks damages in excess of $1.0 million for property damage, personal injury, and wrongful death. The petition also seeks exemplary damages. Plaintiff’s ex-husband, brother, and the additional occupant have since intervened in the lawsuit. Intervenors allege the same claims against the Company, Inspections Now, and the Bestview entities and collectively seek damages in excess of $11.0 million for property damage, personal injury (as to the other occupant), wrongful death, and exemplary damages. The Company has answered all petitions, denying the allegations, and is seeking dismissal of the lawsuit in favor of a first-filed lawsuit against other defendants (but arising from the same fire) pending in Harris County, Texas. The trial court denied the Company’s motion seeking dismissal on February 23, 2023. On March 27, 2023, the Company filed a petition seeking mandamus relief from that ruling in the Court of Appeals for the First Judicial District of Texas, No. 01-23-00225-cv. The petition for mandamus relief remains pending. On June 18, 2020, an alleged stockholder filed a putative derivative complaint, Lincolnshire Police Pension Fund v. Taylor, et al., No. 2020-0487-JTL, in the Delaware Court of Chancery, purportedly on behalf of the Company against certain of the Company’s officers, directors, and stockholders. An amended complaint was filed on September 14, 2022. The Company along with the other defendants filed a motion to dismiss on October 31, 2022. The plaintiffs then filed a second amended complaint on December 22, 2022. On February 6, 2023, the Company, along with the other defendants, filed a motion to dismiss the operative complaint. The complaint alleges breaches of fiduciary duties and unjust enrichment. The factual allegations underlying these claims are similar to the factual allegations made in the previously dismissed In re Floor & Decor Holdings, Inc. Securities Litigation, as described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020. The complaint seeks unspecified damages and restitution for the Company from the individual defendants and the payment of costs and attorneys’ fees. The Company maintains insurance that may cover any liability arising out of the above-referenced litigation up to the policy limits and subject to meeting certain deductibles and to other terms and conditions thereof. Estimating an amount or range of possible losses resulting from litigation proceedings is inherently difficult, particularly where the matters involve indeterminate claims for monetary damages and are in the stages of the proceedings where key factual and legal issues have not been resolved. For these reasons, the Company is currently unable to predict the ultimate timing or outcome of or reasonably estimate the possible losses or a range of possible losses resulting from the above-referenced litigation. The Company is also subject to various other legal actions, claims, and proceedings arising in the ordinary course of business, which may include claims related to general liability, workers’ compensation, product liability, intellectual property, and employment-related matters resulting from its business activities. As with most actions such as these, an estimation of any possible and/or ultimate liability cannot always be determined. The Company establishes reserves for specific legal proceedings when it determines that the likelihood of an unfavorable outcome is probable and the amount of loss can be reasonably estimated. These various other ordinary course proceedings are not expected to have a material impact on the Company's consolidated financial position, cash flows, or results of operations, however regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources, and other factors. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based Compensation In accordance with ASC 718, Compensation-Stock Compensation , the Company measures compensation cost for all stock-based awards at fair value on the date of grant and recognizes compensation expense, net of forfeitures, using the straight-line method over the requisite service period of awards expected to vest, which for each of the awards is the service vesting period. The table below presents components of stock-based compensation expense within the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income: Thirteen Weeks Ended in thousands March 30, 2023 March 31, 2022 General and administrative $ 6,367 $ 5,980 Selling and store operating 374 — Total stock-based compensation expense $ 6,741 $ 5,980 Stock Options The table below summarizes stock option activity for the thirteen weeks ended March 30, 2023. Options Weighted Average Exercise Price Outstanding at December 30, 2022 2,101,559 $ 27.10 Exercised (79,452) 26.81 Forfeited or expired (231) 47.12 Outstanding at March 30, 2023 2,021,876 $ 27.11 Vested and exercisable at March 30, 2023 1,900,479 $ 24.74 Restricted Stock Units The Company periodically grants restricted stock units (“RSUs”) that represent an unfunded, unsecured right to receive a share of the Company’s Class A common stock upon vesting. During the thirteen weeks ended March 30, 2023, the Company granted RSUs to certain employees, officers, and non-employee directors, comprised of service-based RSUs, performance-based RSUs, and total shareholder return (“TSR”) awards. Service-based RSUs vest based on the grantee’s continued service through the vesting date. The performance-based RSUs cliff vest based on (i) the Company's achievement of predetermined financial metrics at the end of a three-year performance period and (ii) the grantee’s continued service through the vesting date. Depending on the performance-based RSU grant and the extent to which the relevant performance goals are achieved, the number of common shares earned upon vesting may range from either 0% to 150% or 0% to 200% of the award granted. The TSR awards cliff vest based on (i) the Company's relative TSR compared to a specified peer group and (ii) the grantee's continued service through the vesting date. The number of common shares earned upon vesting of the TSR awards may range from 0% to 150% of the TSR awards granted with no vesting above the target awards amount if the Company’s three-year absolute TSR is negative. The Company assesses the probability of achieving all performance goals on a quarterly basis. The service periods for RSUs granted during the period varies by grantee and ranges between approximately two The following table summarizes restricted stock unit activity during the thirteen weeks ended March 30, 2023: Restricted Stock Units Service-based Performance-based Total shareholder return Total Restricted Stock Units Unvested at December 30, 2022 408,829 36,117 — 444,946 Granted 350,518 188,543 58,854 597,915 Vested (116,594) — — (116,594) Forfeited (3,175) — — (3,175) Unvested at March 30, 2023 639,578 224,660 58,854 923,092 The aggregate fair value for all restricted stock units granted during the thirteen weeks ended March 30, 2023 was $54.8 million. The grant-date fair value of service-based RSUs and performance-based RSUs is based on the closing market price of the Company’s Class A common stock on the date of grant. The grant-date fair value of TSR awards is estimated using a Monte Carlo valuation method, which included the following assumptions for TSR awards granted during the period: Thirteen Weeks Ended March 30, 2023 Expected term (in years) 2.8 Risk-free interest rate 4.5 % Expected volatility 49.5 % Dividend yield — % Restricted Stock Awards The following table summarizes restricted stock award activity during the thirteen weeks ended March 30, 2023: Restricted Stock Awards Service-based Performance-based (1) Total shareholder return (1) Total Restricted Stock Awards Unvested at December 30, 2022 103,326 134,318 87,517 325,161 Vested (50,178) (86,656) (56,461) (193,295) Unvested at March 30, 2023 53,148 47,662 31,056 131,866 (1) The performance-based and total shareholder return restricted stock awards that vested during the period were issued at 100% of target based on achievement of the predetermined performance and total shareholder return criteria as specified in the underlying grant agreements. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Net Income per Common Share The Company calculates basic earnings per share by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding adjusted for the dilutive effect of share-based awards. The following table shows the computation of basic and diluted earnings per share: Thirteen Weeks Ended in thousands, except per share data March 30, 2023 March 31, 2022 Net income $ 71,524 $ 70,951 Basic weighted average shares outstanding 105,962 105,398 Dilutive effect of share-based awards 1,756 2,141 Diluted weighted average shares outstanding 107,718 107,539 Basic earnings per share $ 0.67 $ 0.67 Diluted earnings per share $ 0.66 $ 0.66 The following potentially dilutive securities were excluded from the computation of diluted earnings per share as a result of their anti-dilutive effect: Thirteen Weeks Ended in thousands March 30, 2023 March 31, 2022 Stock options 62 70 Restricted stock units 291 212 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements As of March 30, 2023 and December 29, 2022, the Company had certain financial assets and liabilities on its Condensed Consolidated Balance Sheets that were required to be measured at fair value on a recurring or non-recurring basis. The estimated fair values of financial assets and liabilities such as cash and cash equivalents, receivables, prepaid expenses and other current assets, other assets, accounts payable, and accrued expenses and other current liabilities approximate their respective carrying values as reported within the Condensed Consolidated Balance Sheets. See Note 3, “Debt” for discussion of the fair value of the Company’s debt. Contingent Earn-out Liabilities As of March 30, 2023, the contingent earn-out liabilities had an aggregate estimated fair value of $7.2 million (classified as level 3 within the fair value hierarchy), of which $2.8 million is included in other liabilities and $4.4 million is included in accrued expenses and other current liabilities within the Condensed Consolidated Balance Sheets. The table below summarizes changes in contingent earn-out liabilities during the thirteen weeks ended March 30, 2023. in thousands Contingent Earn-out Liabilities Balance at December 29, 2022 $ 11,019 Fair value adjustments 1,434 Payments (5,241) Balance at March 30, 2023 $ 7,212 The $1.4 million net increase in the fair value of contingent earn-out liabilities during the thirteen weeks ended March 30, 2023 was recognized in general and administrative expense within the Condensed Consolidated Statements of Operations and Comprehensive Income. Interest Rate Cap Contracts Changes in interest rates impact the Company’s results of operations. In an effort to manage exposure to this risk, the Company enters into derivative contracts and may adjust its derivative portfolio as market conditions change. The Company has outstanding interest rate cap contracts that are designated as cash flow hedges. The effective portion of the gain or loss on effective cash flow hedges is reported as a component of Accumulated Other Comprehensive Income (“AOCI”) and reclassified into earnings in the same period in which the hedged transaction affects earnings. The effective portion of the derivative represents the change in fair value of the hedge that offsets the change in fair value of the hedged item. To the extent the change in the fair value of the hedge does not perfectly offset the change in the fair value of the hedged item, the ineffective portion of the hedge is immediately recognized in earnings. The Company’s outstanding interest rate cap contracts were valued primarily using level 2 inputs based on data readily observable in public markets. The Company's interest rate cap contracts were negotiated with counterparties without going through a public exchange. Accordingly, the Company's fair value assessments for these derivative contracts gave consideration to the risk of counterparty default as well as the Company's own credit risk. As of March 30, 2023 and December 29, 2022, the total fair value of the Company's interest rate cap contracts was approximately $4.7 million and $5.9 million, respectively, which are presented as a component of AOCI within stockholders’ equity on the Condensed Consolidated Balance Sheets net of tax of $1.1 million and $1.4 million, respectively. During the thirteen weeks ended March 30, 2023, the Company reclassified $1.1 million of interest income from AOCI into earnings related to the interest rate cap contracts. No interest income was reclassified from AOCI into earnings during the thirteen weeks ended March 31, 2022. |
Supply Chain Finance
Supply Chain Finance | 3 Months Ended |
Mar. 30, 2023 | |
Payables and Accruals [Abstract] | |
Supply Chain Finance | Supply Chain FinanceThe Company facilitates supply chain finance programs through financial intermediaries, which provide certain suppliers the option to be paid by the financial intermediaries earlier than the due date on the applicable invoice. When a supplier utilizes one of the supply chain finance programs and receives an early payment from a financial intermediary, it takes a discount on the invoice. The Company then pays the financial intermediary the invoice on the original due date. The Company does not reimburse suppliers for any costs they incur for participation in the program. Supplier participation is voluntary, and there are no assets pledged as security or other forms of guarantees provided for the committed payment to the financial intermediaries. As a result, all amounts owed to the financial intermediaries are presented as trade accounts payable in the Condensed Consolidated Balance Sheets. Amounts due to the financial intermediaries reflected in trade accounts payable at March 30, 2023 and December 29, 2022 were $104.1 million and $82.5 million, respectively. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fiscal Year | Fiscal Year The Company’s fiscal year is the 52- or 53-week period ending on the Thursday on or preceding December 31st. The fiscal year ending December 28, 2023 (“fiscal 2023”) and the fiscal year ended December 29, 2022 (“fiscal 2022”) include 52 weeks. 52-week fiscal years consist of thirteen-week periods in each quarter of the fiscal year. When a 53-week fiscal year occurs, we report the additional week at the end of the fiscal fourth quarter. |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information. The Condensed Consolidated Balance Sheet as of December 29, 2022 has been derived from the audited Consolidated Balance Sheet for the fiscal year then ended. The interim condensed consolidated financial statements should be read together with the audited consolidated financial statements and related footnote disclosures included in the Company’s Annual Report on Form 10-K for fiscal 2022, filed with the Securities and Exchange Commission (the “SEC”) on February 23, 2023 (the “Annual Report”). Management believes the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments considered necessary for a fair statement of results for the interim periods presented. Results of operations for the thirteen weeks ended March 30, 2023 are not necessarily indicative of the results to be expected for the full year. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements Supplier Finance Programs. In September 2022, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2022-04, “Liabilities - Supplier Finance Programs (Subtopic 405-50).” The ASU requires disclosure of the key terms of outstanding supply chain finance programs and a rollforward of the related amounts due to vendors participating in these programs. The adoption of ASU 2022-04 did not affect the Company’s financial position, results of operations, or cash flows as the standard only impacts financial statement footnote disclosures. The guidance is effective in the first quarter of fiscal 2023, except for a rollforward of activity within supply chain finance programs, which is effective beginning in fiscal 2024. For additional information, refer to Note 9, “Supply Chain Finance Program.” Business Combinations. In October 2021, the FASB issued ASU No. 2021-08, “ Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers .” The ASU addresses diversity and inconsistency related to the recognition and measurement of contract assets and contract liabilities acquired in a business combination and requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The Company adopted ASU No, 2021-08 in the first quarter of 2023 on a prospective basis. The adoption of ASU No. 2021-08 did not have a material impact on the Company’s consolidated financial statements or related disclosures and is only applicable to the extent that the Company has future business combinations. Recently Issued Accounting Pronouncements Leases . In March 2023, the FASB issued ASU No. 2023-01, “ Leases (Topic 842), Common Control Arrangements ”. The amendments in the ASU applying to public business entities clarifies the accounting for leasehold improvements associated with common control leases, reducing diversity in practice and providing investors with financial information that will better reflect the economics of those transactions. This guidance in ASU No. 2023-01 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, and can be applied prospectively to all new leasehold improvements, prospectively to all new and existing leasehold improvements, or retrospectively to the beginning of the period in which the entity first applied Topic 842. Early adoption of the standard is permitted, including adoption in an interim period. The adoption of ASU 2023-01 is not expected to have an impact on the Company’s consolidated financial statements or related disclosures and would only be applicable to the extent that the Company has future common control leases. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregated Revenue | The following table presents the net sales of each major product category (in thousands): Thirteen Weeks Ended March 30, 2023 March 31, 2022 Product Category Net Sales % of Net Sales Net Sales % of Net Sales Laminate and vinyl $ 299,378 27 % $ 282,235 27 % Tile 264,584 24 230,611 22 Installation materials and tools 202,069 18 167,845 16 Decorative accessories and wall tile 198,578 18 191,035 19 Wood 62,221 6 71,946 7 Natural stone 55,025 5 53,456 5 Adjacent categories 20,012 1 16,188 2 Other (1) 20,185 1 15,418 2 Total $ 1,122,052 100 % $ 1,028,734 100 % (1) Other includes delivery, sample, and other product revenue and adjustments for deferred revenue, sales returns reserves, and other revenue related adjustments that are not allocated on a product-level basis. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt | The following table summarizes the Company’s long-term debt as of March 30, 2023 and December 29, 2022: in thousands Maturity Date Interest Rate Per Annum at 3/30/2023 (1) March 30, 2023 December 29, 2022 Credit Facilities: Term Loan Facility February 14, 2027 6.62% Variable $ 203,973 $ 204,499 Asset-based Loan Facility (“ABL Facility”) August 4, 2027 6.03% Variable 106,500 210,200 Total secured debt at par value 310,473 414,699 Less: current maturities 2,103 2,103 Long-term debt maturities 308,370 412,596 Less: unamortized discount and debt issuance costs 6,622 7,045 Total long-term debt $ 301,748 $ 405,551 (1) The applicable interest rate for the Term Loan Facility as presented herein does not include the effect of interest rate cap agreements. |
Schedule of Maturities of Debt | The following table summarizes scheduled maturities of the Company’s debt as of March 30, 2023: in thousands Amount Thirty-nine weeks ending December 28, 2023 $ 1,577 2024 2,103 2025 2,103 2026 2,629 2027 302,061 Total minimum debt payments $ 310,473 |
Schedule of Components of Interest Expense | Components of interest expense are as follows for the periods presented: Thirteen Weeks Ended in thousands March 30, 2023 March 31, 2022 Total interest costs, net of interest income $ 6,186 $ 1,875 Interest capitalized 1,324 713 Interest expense, net $ 4,862 $ 1,162 |
Schedule of Fair Value of Debt | The estimated fair values and classifications within the fair value hierarchy of the Term Loan Facility and the ABL Facility were as follows as of March 30, 2023 and December 29, 2022: in thousands Fair Value Hierarchy Classification March 30, 2023 December 29, 2022 Term Loan Facility Level 3 $ 199,894 $ 196,575 ABL Facility Level 2 106,500 210,200 Total $ 306,394 $ 406,775 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Components of Lease Expense | The table below presents components of lease expense for operating leases. Thirteen Weeks Ended in thousands Classification March 30, 2023 March 31, 2022 Fixed operating lease cost: Selling and store operating $ 38,144 $ 33,460 Cost of sales 6,258 6,501 Pre-opening 3,066 2,353 General and administrative 1,072 1,141 Total fixed operating lease cost $ 48,540 $ 43,455 Variable lease cost (1): Selling and store operating $ 14,486 $ 12,223 Cost of sales 1,119 1,419 Pre-opening 131 167 General and administrative 303 226 Total variable lease cost $ 16,039 $ 14,035 Sublease income Cost of sales (679) (680) Total operating lease cost (2) $ 63,900 $ 56,810 (1) Includes variable costs for common area maintenance, property taxes, and insurance on leased real estate. (2) Excludes short-term lease costs, which were immaterial for the thirteen weeks ended March 30, 2023 and March 31, 2022. |
Schedule of Future Minimum Lease Payments under Non-Cancelable Operating Leases | Future minimum lease payments under non-cancelable operating leases as of March 30, 2023 were as follows: in thousands Amount Thirty-nine weeks ending December 28, 2023 $ 131,847 2024 196,087 2025 183,737 2026 172,602 2027 165,262 Thereafter 1,093,035 Total minimum lease payments (1) (2) 1,942,570 Less: amount of lease payments representing interest 577,205 Present value of future minimum lease payments 1,365,365 Less: current obligations under leases 113,798 Long-term lease obligations $ 1,251,567 (1) Future lease payments exclude approximately $246.1 million of legally binding minimum lease payments for operating leases signed but not yet commenced. (2) Operating lease payments include $201.3 million related to options to extend lease terms that are reasonably certain of being exercised. |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense | The table below presents components of stock-based compensation expense within the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income: Thirteen Weeks Ended in thousands March 30, 2023 March 31, 2022 General and administrative $ 6,367 $ 5,980 Selling and store operating 374 — Total stock-based compensation expense $ 6,741 $ 5,980 |
Stock Option Activity | The table below summarizes stock option activity for the thirteen weeks ended March 30, 2023. Options Weighted Average Exercise Price Outstanding at December 30, 2022 2,101,559 $ 27.10 Exercised (79,452) 26.81 Forfeited or expired (231) 47.12 Outstanding at March 30, 2023 2,021,876 $ 27.11 Vested and exercisable at March 30, 2023 1,900,479 $ 24.74 |
Restricted Stock Unit Activity | The following table summarizes restricted stock unit activity during the thirteen weeks ended March 30, 2023: Restricted Stock Units Service-based Performance-based Total shareholder return Total Restricted Stock Units Unvested at December 30, 2022 408,829 36,117 — 444,946 Granted 350,518 188,543 58,854 597,915 Vested (116,594) — — (116,594) Forfeited (3,175) — — (3,175) Unvested at March 30, 2023 639,578 224,660 58,854 923,092 |
Schedule of Valuation Assumptions | The grant-date fair value of TSR awards is estimated using a Monte Carlo valuation method, which included the following assumptions for TSR awards granted during the period: Thirteen Weeks Ended March 30, 2023 Expected term (in years) 2.8 Risk-free interest rate 4.5 % Expected volatility 49.5 % Dividend yield — % |
Restricted Stock Award Activity | The following table summarizes restricted stock award activity during the thirteen weeks ended March 30, 2023: Restricted Stock Awards Service-based Performance-based (1) Total shareholder return (1) Total Restricted Stock Awards Unvested at December 30, 2022 103,326 134,318 87,517 325,161 Vested (50,178) (86,656) (56,461) (193,295) Unvested at March 30, 2023 53,148 47,662 31,056 131,866 (1) The performance-based and total shareholder return restricted stock awards that vested during the period were issued at 100% of target based on achievement of the predetermined performance and total shareholder return criteria as specified in the underlying grant agreements. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Share | The following table shows the computation of basic and diluted earnings per share: Thirteen Weeks Ended in thousands, except per share data March 30, 2023 March 31, 2022 Net income $ 71,524 $ 70,951 Basic weighted average shares outstanding 105,962 105,398 Dilutive effect of share-based awards 1,756 2,141 Diluted weighted average shares outstanding 107,718 107,539 Basic earnings per share $ 0.67 $ 0.67 Diluted earnings per share $ 0.66 $ 0.66 |
Schedule of Potentially Dilutive Securities Excluded from Computation of Diluted Earnings Per Share | The following potentially dilutive securities were excluded from the computation of diluted earnings per share as a result of their anti-dilutive effect: Thirteen Weeks Ended in thousands March 30, 2023 March 31, 2022 Stock options 62 70 Restricted stock units 291 212 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The table below summarizes changes in contingent earn-out liabilities during the thirteen weeks ended March 30, 2023. in thousands Contingent Earn-out Liabilities Balance at December 29, 2022 $ 11,019 Fair value adjustments 1,434 Payments (5,241) Balance at March 30, 2023 $ 7,212 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Details) ft² in Thousands | 3 Months Ended |
Mar. 30, 2023 ft² designStudio segment state distributionCenter store | |
Real Estate Properties [Line Items] | |
Number of reportable segments | segment | 1 |
Number of states with facilities | state | 36 |
Number of distribution centers | distributionCenter | 4 |
Warehouse-format stores | |
Real Estate Properties [Line Items] | |
Number of stores (facilities) | store | 194 |
Area of facility (in square feet) | ft² | 79 |
Small-format standalone design studios | |
Real Estate Properties [Line Items] | |
Number of stores (facilities) | designStudio | 5 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) $ in Thousands | 3 Months Ended | |
Mar. 30, 2023 USD ($) segment | Dec. 29, 2022 USD ($) | |
Revenue from Contract with Customer [Abstract] | ||
Contract liabilities | $ 64,900 | $ 57,000 |
Deferred revenue | 14,418 | 10,060 |
Loyalty program liabilities | 36,600 | 33,800 |
Unredeemed gift cards | 13,900 | $ 13,100 |
Contract liabilities, revenue recognized | $ 11,300 | |
Number of reportable segments | segment | 1 |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Net Sales | $ 1,122,052 | $ 1,028,734 |
Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
% of Net Sales | 100% | 100% |
Laminate and vinyl | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | $ 299,378 | $ 282,235 |
Laminate and vinyl | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
% of Net Sales | 27% | 27% |
Tile | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | $ 264,584 | $ 230,611 |
Tile | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
% of Net Sales | 24% | 22% |
Installation materials and tools | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | $ 202,069 | $ 167,845 |
Installation materials and tools | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
% of Net Sales | 18% | 16% |
Decorative accessories and wall tile | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | $ 198,578 | $ 191,035 |
Decorative accessories and wall tile | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
% of Net Sales | 18% | 19% |
Wood | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | $ 62,221 | $ 71,946 |
Wood | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
% of Net Sales | 6% | 7% |
Natural stone | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | $ 55,025 | $ 53,456 |
Natural stone | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
% of Net Sales | 5% | 5% |
Adjacent categories | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | $ 20,012 | $ 16,188 |
Adjacent categories | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
% of Net Sales | 1% | 2% |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | $ 20,185 | $ 15,418 |
Other | Revenue from Contract with Customer, Product and Service Benchmark | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
% of Net Sales | 1% | 2% |
Debt - Schedule of Long Term De
Debt - Schedule of Long Term Debt (Details) - USD ($) $ in Thousands | Mar. 30, 2023 | Dec. 29, 2022 |
Debt Instrument [Line Items] | ||
Total debt | $ 310,473 | $ 414,699 |
Less: current maturities | 2,103 | 2,103 |
Long-term debt maturities | 308,370 | 412,596 |
Less: unamortized discount and debt issuance costs | 6,622 | 7,045 |
Total long-term debt | $ 301,748 | 405,551 |
Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Interest rate per annum | 6.62% | |
Total debt | $ 203,973 | 204,499 |
Asset-based Loan Facility (“ABL Facility”) | Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Interest rate per annum | 6.03% | |
Total debt | $ 106,500 | $ 210,200 |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Debt (Details) $ in Thousands | Mar. 30, 2023 USD ($) |
Debt Disclosure [Abstract] | |
Thirty-nine weeks ending December 28, 2023 | $ 1,577 |
2024 | 2,103 |
2025 | 2,103 |
2026 | 2,629 |
2027 | 302,061 |
Total secured debt at par value | $ 310,473 |
Debt - Schedule of Components o
Debt - Schedule of Components of Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2023 | Mar. 31, 2022 | |
Debt Disclosure [Abstract] | ||
Total interest costs, net of interest income | $ 6,186 | $ 1,875 |
Interest capitalized | 1,324 | 713 |
Interest expense, net | $ 4,862 | $ 1,162 |
Debt - Term Loan Facility (Deta
Debt - Term Loan Facility (Details) - Credit Agreement | Nov. 15, 2022 |
Fed Funds Effective Rate Overnight Index Swap Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 0.50% |
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1% |
Interest rate floor | 0% |
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2% |
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.25% |
Base rate | Minimum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1% |
Base rate | Maximum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.25% |
Debt - ABL Facility (Details)
Debt - ABL Facility (Details) - USD ($) | 3 Months Ended | |
Mar. 30, 2023 | Dec. 29, 2022 | |
Line of Credit Facility [Line Items] | ||
Long-term debt | $ 310,473,000 | $ 414,699,000 |
Asset-based Loan Facility (“ABL Facility”) | ||
Line of Credit Facility [Line Items] | ||
Outstanding letters of credit | $ 33,300,000 | |
Asset-based Loan Facility (“ABL Facility”) | Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Eligible net trade receivables (as a percent) | 85% | |
Eligible letter of credit (as a percent) | 100% | |
Available borrowing capacity | $ 660,200,000 | |
Asset-based Loan Facility (“ABL Facility”) | Revolving Credit Facility | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Long-term debt | 106,500,000 | $ 210,200,000 |
Revolving Credit Facility Accordion Feature | Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Borrowing capacity | 800,000,000 | |
Line of credit facility, accordion feature, increase limit | 200,000,000 | |
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Borrowing capacity | $ 50,000,000 |
Debt - Covenants (Details)
Debt - Covenants (Details) | 3 Months Ended |
Mar. 30, 2023 | |
Asset-based Loan Facility (“ABL Facility”) | Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Percentage usage of facility to trigger covenant | 90% |
Debt - Fair Value of Debt (Deta
Debt - Fair Value of Debt (Details) - USD ($) $ in Thousands | Mar. 30, 2023 | Dec. 29, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt, fair value | $ 306,394 | $ 406,775 |
Term Loan Facility | Level 3 | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 199,894 | 196,575 |
ABL Facility | Level 2 | Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | $ 106,500 | $ 210,200 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 30, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 21.10% | 23.60% |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Aug. 08, 2022 | Nov. 15, 2021 | Mar. 30, 2023 | Mar. 31, 2022 | |
Lessee, Lease, Description [Line Items] | ||||
Weighted average discount rate | 5.50% | 5.10% | ||
Weighted average remaining lease term | 12 years | 11 years | ||
Cash paid for operating leases | $ 46.4 | $ 43 | ||
Nguyen v. Inspections Now, Inc., No. 21-DCV-287142 | Pending Litigation | Damages from Product Defects | ||||
Lessee, Lease, Description [Line Items] | ||||
Loss contingency, damages (in excess) | $ 11 | $ 1 | ||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term (in years) | 10 years | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term (in years) | 20 years |
Commitments and Contingencies_2
Commitments and Contingencies - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2023 | Mar. 31, 2022 | |
Lease, Cost | ||
Total fixed operating lease cost | $ 48,540 | $ 43,455 |
Total variable lease cost | 16,039 | 14,035 |
Sublease income | (679) | (680) |
Total operating lease cost | 63,900 | 56,810 |
Selling and store operating | ||
Lease, Cost | ||
Total fixed operating lease cost | 38,144 | 33,460 |
Total variable lease cost | 14,486 | 12,223 |
Cost of sales | ||
Lease, Cost | ||
Total fixed operating lease cost | 6,258 | 6,501 |
Total variable lease cost | 1,119 | 1,419 |
Pre-opening | ||
Lease, Cost | ||
Total fixed operating lease cost | 3,066 | 2,353 |
Total variable lease cost | 131 | 167 |
General and administrative | ||
Lease, Cost | ||
Total fixed operating lease cost | 1,072 | 1,141 |
Total variable lease cost | $ 303 | $ 226 |
Commitments and Contingencies_3
Commitments and Contingencies - Lease Maturity (Details) - USD ($) $ in Thousands | Mar. 30, 2023 | Dec. 29, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Thirty-nine weeks ending December 28, 2023 | $ 131,847 | |
2024 | 196,087 | |
2025 | 183,737 | |
2026 | 172,602 | |
2027 | 165,262 | |
Thereafter | 1,093,035 | |
Total minimum lease payments | 1,942,570 | |
Less: amount of lease payments representing interest | 577,205 | |
Present value of future minimum lease payments | 1,365,365 | |
Less: current obligations under leases | 113,798 | $ 105,693 |
Long-term lease obligations | 1,251,567 | $ 1,227,507 |
Legally binding minimum lease payments for operating leases signed but not yet commenced | 246,100 | |
Minimum lease payments for options to extend lease terms | $ 201,300 |
Stock-Based Compensation - Comp
Stock-Based Compensation - Components of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2023 | Mar. 31, 2022 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | $ 6,741 | $ 5,980 |
General and administrative | ||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | 6,367 | 5,980 |
Selling and store operating | ||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | $ 374 | $ 0 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) | 3 Months Ended |
Mar. 30, 2023 $ / shares shares | |
Options | |
Outstanding at beginning of period (in shares) | shares | 2,101,559 |
Exercised (in shares) | shares | (79,452) |
Forfeited or expired (in shares) | shares | (231) |
Outstanding at the end of period (in shares) | shares | 2,021,876 |
Vested and exercisable, Options (in shares) | shares | 1,900,479 |
Weighted Average Exercise Price | |
Outstanding at the beginning of period (in dollars per share) | $ / shares | $ 27.10 |
Exercised (in dollars per share) | $ / shares | 26.81 |
Forfeited or expired (in dollars per share) | $ / shares | 47.12 |
Outstanding at the end of period (in dollars per share) | $ / shares | 27.11 |
Vested and exercisable, Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 24.74 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 30, 2023 USD ($) | |
Performance-based | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period (in years) | 3 years |
TSR Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period (in years) | 3 years |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Aggregate grant date fair value | $ 54.8 |
Restricted stock units | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period (in years) | 2 years |
Restricted stock units | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period (in years) | 4 years |
Total Restricted Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting rights (as a percent) | 100% |
Executive officers | Performance-based | Minimum | One Time Grant | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting rights (as a percent) | 0% |
Executive officers | Performance-based | Minimum | Annual Grant | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting rights (as a percent) | 0% |
Executive officers | Performance-based | Maximum | One Time Grant | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting rights (as a percent) | 150% |
Executive officers | Performance-based | Maximum | Annual Grant | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting rights (as a percent) | 200% |
Executive officers | TSR Awards | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting rights (as a percent) | 0% |
Executive officers | TSR Awards | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting rights (as a percent) | 150% |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Unit Activity (Details) | 3 Months Ended |
Mar. 30, 2023 shares | |
Total Restricted Stock Units | |
Number of Awards | |
Beginning balance (in shares) | 444,946 |
Granted (in shares) | 597,915 |
Vested (in shares) | (116,594) |
Forfeited (in shares) | (3,175) |
Ending balance (in shares) | 923,092 |
Service-based | |
Number of Awards | |
Beginning balance (in shares) | 408,829 |
Granted (in shares) | 350,518 |
Vested (in shares) | (116,594) |
Forfeited (in shares) | (3,175) |
Ending balance (in shares) | 639,578 |
Performance-based | |
Number of Awards | |
Beginning balance (in shares) | 36,117 |
Granted (in shares) | 188,543 |
Vested (in shares) | 0 |
Forfeited (in shares) | 0 |
Ending balance (in shares) | 224,660 |
Total shareholder return | |
Number of Awards | |
Beginning balance (in shares) | 0 |
Granted (in shares) | 58,854 |
Vested (in shares) | 0 |
Forfeited (in shares) | 0 |
Ending balance (in shares) | 58,854 |
Stock-Based Compensation - Shar
Stock-Based Compensation - Share-Based Payment Award Valuation Assumptions (Details) - TSR Awards | 3 Months Ended |
Mar. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (in years) | 2 years 9 months 18 days |
Risk-free interest rate | 4.50% |
Expected volatility | 49.50% |
Dividend yield | 0% |
Stock-Based Compensation - Re_2
Stock-Based Compensation - Restricted Stock Award Activity (Details) | 3 Months Ended |
Mar. 30, 2023 shares | |
Total Restricted Stock Awards | |
Restricted Stock Awards | |
Beginning balance (in shares) | 325,161 |
Vested (in shares) | (193,295) |
Ending balance (in shares) | 131,866 |
Vesting rights (as a percent) | 100% |
Service-based | |
Restricted Stock Awards | |
Beginning balance (in shares) | 103,326 |
Vested (in shares) | (50,178) |
Ending balance (in shares) | 53,148 |
Performance-based | |
Restricted Stock Awards | |
Beginning balance (in shares) | 134,318 |
Vested (in shares) | (86,656) |
Ending balance (in shares) | 47,662 |
Total shareholder return | |
Restricted Stock Awards | |
Beginning balance (in shares) | 87,517 |
Vested (in shares) | (56,461) |
Ending balance (in shares) | 31,056 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 30, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Net income | $ 71,524 | $ 70,951 |
Basic weighted average shares outstanding (in shares) | 105,962 | 105,398 |
Dilutive effect of share-based awards (in shares) | 1,756 | 2,141 |
Diluted weighted average shares outstanding (in shares) | 107,718 | 107,539 |
Basic earnings per share (in dollars per share) | $ 0.67 | $ 0.67 |
Diluted earnings per share (in dollars per share) | $ 0.66 | $ 0.66 |
Earnings Per Share - Schedule_2
Earnings Per Share - Schedule of Potentially Dilutive Securities Excluded from Computation of Diluted Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 30, 2023 | Mar. 31, 2022 | |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from the computation of diluted earnings (in shares) | 62 | 70 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from the computation of diluted earnings (in shares) | 291 | 212 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 30, 2023 | Mar. 31, 2022 | Dec. 29, 2022 | Dec. 30, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Stockholders' equity | $ 1,728,417 | $ 1,402,417 | $ 1,657,176 | $ 1,323,199 |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Reclassification out of AOCI | 1,100 | $ 0 | ||
Interest Rate Cap | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Stockholders' equity | 1,100 | 1,400 | ||
Business Combination, Contingent Consideration, Liability | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value adjustments | 1,434 | |||
Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration liability | 7,200 | |||
Level 3 | Other Liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration liability | 2,800 | |||
Level 3 | Accrued Expenses And Other Current Liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration liability | 4,400 | |||
Level 2 | Fair Value, Recurring | Interest Rate Cap | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative asset, fair value | $ 4,700 | $ 5,900 |
Fair Value Measurements - Summa
Fair Value Measurements - Summarizes Changes In Contingent Earn-Out Liabilities (Details) - Business Combination, Contingent Consideration, Liability $ in Thousands | 3 Months Ended |
Mar. 30, 2023 USD ($) | |
Contingent Earn-out Liabilities | |
Beginning balance | $ 11,019 |
Fair value adjustments | 1,434 |
Payments | (5,241) |
Ending balance | $ 7,212 |
Supply Chain Finance (Details)
Supply Chain Finance (Details) - USD ($) $ in Millions | Mar. 30, 2023 | Dec. 29, 2022 |
Payables and Accruals [Abstract] | ||
Supplier finance program obligation | $ 104.1 | $ 82.5 |