Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 28, 2018 | Jul. 31, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | Floor & Decor Holdings, Inc. | |
Entity Central Index Key | 1,507,079 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 28, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-27 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 97,222,147 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,018 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 28, 2018 | Dec. 28, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 547 | $ 556 |
Income taxes receivable | 15,866 | 12,472 |
Receivables, net | 41,343 | 54,041 |
Inventories, net | 432,446 | 427,950 |
Prepaid expenses and other current assets | 12,107 | 8,193 |
Total current assets | 502,309 | 503,212 |
Fixed assets, net | 271,500 | 220,952 |
Intangible assets, net | 109,346 | 109,362 |
Goodwill | 227,447 | 227,447 |
Other assets | 7,808 | 7,019 |
Total long-term assets | 616,101 | 564,780 |
Total assets | 1,118,410 | 1,067,992 |
Current liabilities: | ||
Current portion of term loans | 3,500 | 3,500 |
Trade accounts payable | 264,987 | 258,730 |
Accrued expenses | 62,162 | 74,547 |
Deferred revenue | 4,683 | 22,523 |
Total current liabilities | 335,332 | 359,300 |
Term loans | 143,198 | 144,562 |
Revolving line of credit | 13,600 | 41,000 |
Deferred rent | 30,650 | 25,570 |
Deferred income tax liabilities, net | 30,702 | 27,218 |
Tenant improvement allowances | 27,650 | 26,779 |
Other liabilities | 2,604 | 703 |
Total long-term liabilities | 248,404 | 265,832 |
Total liabilities | 583,736 | 625,132 |
Commitments and contingencies | ||
Capital stock: | ||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding at June 28, 2018 and December 28, 2017 | 0 | 0 |
Additional paid-in capital | 335,024 | 323,419 |
Accumulated other comprehensive income (loss), net | 460 | (205) |
Retained earnings | 199,093 | 119,550 |
Total stockholders' equity | 534,674 | 442,860 |
Total liabilities and stockholders' equity | 1,118,410 | 1,067,992 |
Class A Common Stock | ||
Capital stock: | ||
Common Stock | 97 | 96 |
Class B Common Stock | ||
Capital stock: | ||
Common Stock | 0 | 0 |
Class C Common Stock | ||
Capital stock: | ||
Common Stock | $ 0 | $ 0 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 28, 2018 | Dec. 28, 2017 |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Class A Common Stock | ||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 450,000,000 | 450,000,000 |
Common stock, shares issued | 97,218,543 | 95,509,179 |
Common stock, shares outstanding | 97,218,543 | 95,509,179 |
Class B Common Stock | ||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 0 | 0 |
Common stock, shares outstanding | 0 | 0 |
Class C Common Stock | ||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 0 | 0 |
Common stock, shares outstanding | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2018 | Jun. 29, 2017 | Jun. 28, 2018 | Jun. 29, 2017 | |
Income Statement [Abstract] | ||||
Net Sales | $ 434,279 | $ 344,047 | $ 837,227 | $ 651,343 |
Type of Revenue [Extensible List] | us-gaap:ProductMember | |||
Cost of sales | 256,641 | 201,819 | $ 494,203 | 383,644 |
Type of Cost, Good or Service [Extensible List] | us-gaap:ProductMember | |||
Gross profit | 177,638 | 142,228 | $ 343,024 | 267,699 |
Operating expenses: | ||||
Selling and store operating | 108,626 | 85,650 | 211,193 | 166,401 |
General and administrative | 25,179 | 19,518 | 48,518 | 37,399 |
Pre-opening | 6,588 | 2,958 | 9,562 | 7,125 |
Total operating expenses | 140,393 | 108,126 | 269,273 | 210,925 |
Operating income | 37,245 | 34,102 | 73,751 | 56,774 |
Interest expense | 2,145 | 3,353 | 3,929 | 8,767 |
Loss on extinguishment of debt | 0 | 5,442 | 0 | 5,442 |
Income before income taxes | 35,100 | 25,307 | 69,822 | 42,565 |
Provision for income taxes | (4,746) | 4,878 | (1,895) | 11,008 |
Net income | $ 39,846 | $ 20,429 | $ 71,717 | $ 31,557 |
Basic earnings per share | $ 0.41 | $ 0.22 | $ 0.75 | $ 0.36 |
Diluted earnings per share | $ 0.38 | $ 0.20 | $ 0.68 | $ 0.33 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2018 | Jun. 29, 2017 | Jun. 28, 2018 | Jun. 29, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 39,846 | $ 20,429 | $ 71,717 | $ 31,557 |
Other comprehensive income (loss) - change in fair value of hedge instruments, net of tax | 235 | (484) | 665 | (766) |
Total comprehensive income | $ 40,081 | $ 19,945 | $ 72,382 | $ 30,791 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 28, 2018 | Jun. 29, 2017 | |
Operating activities | ||
Net income | $ 71,717 | $ 31,557 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 23,632 | 18,058 |
Non-cash loss on early extinguishment of debt | 0 | 5,442 |
Amortization of tenant improvement allowances | (2,165) | (1,547) |
Deferred income taxes | 2,822 | 7,586 |
Interest cap derivative contracts | (794) | 0 |
Stock based compensation expense | 2,952 | 2,135 |
Changes in operating assets and liabilities: | ||
Receivables, net | 12,697 | (3,967) |
Inventories, net | (14,989) | (73,771) |
Other assets | (3,306) | (1,643) |
Trade accounts payable | 6,257 | 85,118 |
Accrued expenses | (21,912) | (10,901) |
Income taxes | (5,320) | (7,868) |
Deferred revenue | 2,441 | 7,063 |
Deferred rent | 4,955 | 5,994 |
Tenant improvement allowances | 3,034 | 3,124 |
Other | 1,902 | 59 |
Net cash provided by operating activities | 83,923 | 66,439 |
Investing activities | ||
Purchases of fixed assets | (63,438) | (45,498) |
Net cash used in investing activities | (63,438) | (45,498) |
Financing activities | ||
Borrowings on revolving line of credit | 129,300 | 111,700 |
Payments on revolving line of credit | (156,700) | (129,900) |
Payments on term loans | (1,750) | (195,750) |
Net proceeds from initial public offering | 0 | 192,082 |
Proceeds from exercise of stock options | 8,656 | 1,855 |
Debt issuance costs | 0 | (993) |
Net cash used in financing activities | (20,494) | (21,006) |
Net increase (decrease) in cash and cash equivalents | (9) | (65) |
Cash and cash equivalents, beginning of the period | 556 | 451 |
Cash and cash equivalents, end of the period | 547 | 386 |
Supplemental disclosures of cash flow information | ||
Cash paid for interest | 3,844 | 11,682 |
Cash paid for income taxes | 637 | 11,134 |
Fixed assets accrued at the end of the period | 18,596 | 8,472 |
Fixed assets acquired as part of lease - paid for by lessor | $ 0 | $ 1,786 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 28, 2018 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Nature of Business Floor & Decor Holdings, Inc., together with its subsidiaries (the “Company,” “we,” “our” or “us”) is a highly differentiated, rapidly growing specialty retailer of hard surface flooring and related accessories. We offer a broad in stock assortment of tile, wood, laminate and natural stone flooring along with decorative and installation accessories 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 customers who buy the products for professional installation (“Buy it Yourself” or “BIY”). We operate within one reportable segment. As of June 28, 2018, the Company, through its wholly owned subsidiary, Floor and Decor Outlets of America, Inc. (“F&D”) , operates 88 warehouse-format stores, which average 74,000 square feet, and one small-format standalone design center in 22 states, as well as three distribution centers and an e-commerce site, FloorandDecor.com. Fiscal Year The Company’s fiscal year is the 52- or 53-week period ending on the Thursday on or preceding December 31st. Fiscal years ended December 27, 2018 (“fiscal 2018”) and December 28, 2017 (“fiscal 2017”) include 52 weeks. When a 53-week fiscal year occurs, we report the additional week at the end of the fiscal fourth quarter. 52-week fiscal years consist of thirteen-week periods in the first, second, third and fourth quarters of the fiscal year. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and our 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 28, 2017 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 2017, filed with the Securities and Exchange Commission (the “SEC”) on March 5, 2018 (the “Annual Report”). Unless indicated otherwise, the information in this quarterly report on Form 10-Q (the “Quarterly Report”) has been adjusted to give effect to a 321.820-for-one stock split of the Company’s outstanding common stock, which was approved by the Company’s board of directors and shareholders on April 13, 2017 and effected on April 24, 2017. Certain prior year amounts have been reclassified in the consolidated financial statements to conform to the current year presentation. 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 and twenty-six weeks ended June 28, 2018 and June 29, 2017 are not necessarily indicative of the results to be expected for the full year. Revenue Recognition We recognize revenue and the related cost of sales when we satisfy the performance obligations in contracts with our customers. Our performance obligations for our retail store sales as well as for orders placed through our website and shipped to our customers are satisfied at the point-of-sale, which is the point at which the customer obtains control of the inventory as described under Accounting Standards Update (ASU) No. 2014-09, "Revenue from Contracts with Customers” (Topic 606). Shipping and handling activities are performed after the customer obtains control of the goods and are accounted for as activities to fulfill the promise to transfer goods, rather than a separate performance obligation as outlined within Topic 606. Payment is due from the customer immediately at the point-of-sale for both retail store sales and website sales. The nature of the goods offered include hard surface flooring and related accessories. We do not perform installation services, and we offer free design services in-store. The transaction price recognized in revenues represents the selling price of the products offered. Sales taxes collected are not recognized as revenue as these amounts are ultimately remitted to the appropriate taxing authorities. Our customers have the right to return the goods sold to them within a reasonable period, typically ninety days. The right of return is an element of variable consideration as defined with Topic 606. We reserve for future returns of previously sold goods based on historical experience and various other assumptions that we believe to be reasonable. This reserve reduces sales and cost of sales as well as establishes a return asset and refund liability. The return asset is included within Inventories, net and the refund liability is included within Accrued Expenses, each respectively on the Condensed Consolidated Balance Sheets. Merchandise exchanges of similar product and price are not considered merchandise returns and, therefore, are excluded when calculating the sales returns reserve. Gift Cards and Merchandise Credits We sell gift cards to our customers in our stores and through our website and issue merchandise credits in our stores. We account for the programs by recognizing a liability at the time the gift card is sold or the merchandise credit is issued. The liability is relieved and revenue is recognized upon redemption. Additionally, we recognize breakage income in proportion to the pattern of rights exercised by the customer when we expect to be entitled to breakage. Net sales related to the estimated breakage are included in net sales in the Condensed Consolidated Statements of Income. We have an agreement with an unrelated third-party who is the issuer of our gift cards and also assumes the liability for unredeemed gift cards. We are not subject to claims under unclaimed property statutes, as the agreement effectively transfers the ownership of such unredeemed gift cards and the related future escheatment liability, if any, to the third-party. Accordingly, in the twenty-six weeks ended June 28, 2018 and June 29, 2017, gift card breakage income of $1,172 thousand and $348 thousand, respectively was recognized in net sales in the Condensed Consolidated Statements of Income, respectively, for such unredeemed gift cards. There have been no other additional updates to our Significant Accounting Policies since the Annual Report. For 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 Issued Accounting Pronouncements There have been no updates to Recently Issued Accounting Pronouncements since the Annual Report. For information regarding Recently Issued Accounting Pronouncements, see the “Summary of Significant Accounting Policies” section of “Item 8. Financial Statements And Supplementary Data” of our Annual Report. Recently Adopted Accounting Pronouncements In October 2016, the FASB issued ASU No. 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory." This standard update requires an entity to recognize the income tax consequences of intra-entity transfers of assets other than inventory when the transfer occurs. ASU No. 2016-16 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. The amendments in this update should be applied using a modified retrospective approach. The adoption of ASU No. 2016-16 in the first quarter of fiscal 2018 did not have a material impact on the Company's Condensed Consolidated Financial Statements. In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments." The standard update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. ASU No. 2016-15 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. The amendments in this update should be applied using a retrospective approach. The adoption of ASU No. 2016-15 in the first quarter of fiscal 2018 did not have a material impact on the Company's Condensed Consolidated Statements of Cash Flows. In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, "Revenue from Contracts with Customers." ASU No. 2014-09 provided new guidance related to the core principle that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to receive in exchange for those goods or services provided. We adopted this standard using the modified retrospective approach in the first quarter of fiscal 2018, effective December 29, 2017. Under the new guidance, we recognize revenue at the time the customer obtains control of the inventory. The cumulative adjustment upon adoption primarily resulted in a reduction of deferred revenue and related inventories and an increase to retained earnings. The adoption of ASU No. 2014-09 did not have a material impact to the Company’s Condensed Consolidated Financial Statements. |
Revenues
Revenues | 6 Months Ended |
Jun. 28, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | 2. Revenues Adoption of ASC Topic 606, “Revenue from Contracts with Customers” On December 29, 2017, we adopted Topic 606 using the modified retrospective method applied to those contracts that were not completed as of December 29, 2017. Results for reporting periods beginning after December 29, 2017 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC 605, Revenue Recognition (Topic 605). We recorded a net increase to opening retained earnings of $7.8 million, net of tax, as of December 29, 2017 due to the cumulative impact of adopting Topic 606, with the impact primarily related to transactions for which we allow customers to store their merchandise at our retail stores for final delivery at a later date. The cumulative adjustment primarily resulted in a reduction of deferred revenue and related inventories and an increase to retained earnings. The impact to revenues as a result of applying Topic 606 was immaterial for the thirteen and twenty-six weeks ended June 28, 2018. Deferred Revenue Under Topic 605 we recognized revenue for certain transactions for which we allow customers to store their merchandise at our retail stores for final delivery at a later date when both collection or reasonable assurance of collection of payment and final delivery of the product had occurred. Under Topic 605, the amount of revenue for which final delivery of the product had not occurred for these transactions was reflected in the Deferred revenue caption on the Condensed Consolidated Balance Sheet as of December 28, 2017. Under Topic 606, we evaluated the bill-and-hold criteria and recognize revenue at the point-of-sale, when the customer obtains control of the inventory. Amounts in Deferred revenue at period-end reflect orders for which the inventory is not currently ready for physical transfer to the customer. Gift Card Breakage Under Topic 605, gift card breakage income is recognized based upon historical redemption patterns. Under Topic 606, gift card breakage income is recognized in proportion to the pattern of rights exercised by the customer when we expect to be entitled to breakage. The timing and amounts of revenue related to gift card breakage income in the cumulative transition adjustment, and for the thirteen and twenty-six weeks ended June 28, 2018 were immaterial to the Condensed Consolidated Financial Statements. Disaggregated Revenue The following table presents the net sales of each major product category (in thousands): Thirteen Weeks Ended Twenty-six Weeks Ended March 29, 2018 June 28, 2018 June 28, 2018 % of % of % of Product Category Net Sales Net Sales Net Sales Net Sales Net Sales Net Sales Tile $ 117,402 29 % $ 123,408 28 % $ 240,810 29 % Decorative Accessories 78,489 19 82,976 19 161,465 19 Laminate / Luxury Vinyl Plank 66,892 17 77,436 18 144,328 17 Accessories (Installation Materials and Tools) 63,581 16 68,201 16 131,782 16 Wood 46,485 12 48,911 11 95,396 11 Natural Stone 28,006 7 29,533 7 57,539 7 Delivery and Other 2,093 — 3,814 1 5,907 1 Total $ 402,948 100 % $ 434,279 100 % $ 837,227 100 % Thirteen Weeks Ended Twenty-six Weeks Ended March 30, 2017 June 29, 2017 June 29, 2017 % of % of % of Product Category Net Sales Net Sales Net Sales Net Sales Net Sales Net Sales Tile $ 92,682 30 % $ 103,794 30 % $ 196,476 30 % Decorative Accessories 60,300 20 64,975 19 125,275 19 Laminate / Luxury Vinyl Plank 42,539 14 50,943 15 93,482 14 Accessories (Installation Materials and Tools) 48,552 16 54,167 16 102,719 16 Wood 36,993 12 41,789 12 78,782 12 Natural Stone 24,500 8 26,927 8 51,427 8 Delivery and Other 1,730 — 1,452 — 3,182 1 Total $ 307,296 100 % $ 344,047 100 % $ 651,343 100 % In the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 29, 2018, the product category titles Laminate / Luxury Vinyl Plank and Accessories (Installation Materials and Tools) were inadvertently transposed in the Company’s net sales by product category table for the thirteen weeks ended March 29, 2018 and March 30, 2017. The correct amounts are shown in the table above. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 28, 2018 | |
Fair Value Measurements | |
Fair Value Measurements | 3. Fair Value Measurements We estimate fair values in accordance with ASC 820, Fair Value Measurement . ASC 820 provides a framework for measuring fair value and expands disclosures required about fair value measurements. ASC 820 defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Additionally, ASC 820 defines levels within a hierarchy based upon observable and non-observable inputs . · Level 1—Inputs that are quoted prices in active markets for identical assets or liabilities · Level 2—Inputs other than quoted prices in active markets for assets or liabilities that are either directly or indirectly observable · Level 3—Inputs that are non‑observable that reflect the reporting entity’s own assumptions Assets (Liabilities) Measured at Fair Value on a Recurring Basis As of June 28, (in thousands) 2018 Level 1 Level 2 Level 3 Designated as hedges: Interest rate cap (cash flow hedge) $ 1,541 $ — $ 1,541 $ — Not designated as hedges: Interest rate cap $ 1,541 $ — $ 1,541 $ — As of December 28, (in thousands) 2017 Level 1 Level 2 Level 3 Designated as hedges: Interest rate cap (cash flow hedge) $ 710 $ — $ 710 $ — Not designated as hedges: Interest rate cap $ 710 $ — $ 710 $ — Our derivative contracts are negotiated with counterparties without going through a public exchange. Accordingly, our fair value assessments give consideration to the risk of counterparty default (as well as our own credit risk). Our interest rate derivatives consist of interest rate cap contracts and are valued primarily based on data readily observable in public markets. |
Derivatives and Risk Management
Derivatives and Risk Management | 6 Months Ended |
Jun. 28, 2018 | |
Derivatives and Risk Management | |
Derivatives and Risk Management | 4. Derivatives and Risk Management Changes in interest rates impact our results of operations. In an effort to manage our exposure to this risk, we enter into derivative contracts and may adjust our derivative portfolio as market conditions change. Designated as Cash Flow Hedge For derivative contracts designated as cash flow hedges, the effective portion of the gain or loss on the derivative 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. Not Designated as Accounting Hedge For derivative contracts de-designated as accounting hedges, the change in the fair value is reflected through earnings. These changes in fair value are mark-to-market adjustments ("MTM adjustments"). MTM adjustments are defined as fair value changes recorded in periods other than the settlement period. Such fair value changes are not necessarily indicative of the actual settlement value of the underlying hedge in the contract settlement period. The AOCI related to the interest rate cap prior to the de-designation is being amortized over the remaining maturity period. Interest Rate Risk Our exposure to market risk from adverse changes in interest rates is primarily associated with our long‑term debt obligations, which carry variable interest rates. Market risk associated with our variable interest rate long‑term debt relates to the potential reduction in fair value and negative impact to future earnings, respectively, from an increase in interest rates. In an effort to manage our exposure to the risk associated with our variable interest rate long‑term debt, we periodically enter into interest rate derivative contracts. We designate interest rate derivative contracts used to convert the interest rate exposure on a portion of our debt portfolio from a floating rate to a capped rate as cash flow hedges. Hedge Position as of June 28, 2018: Final Maturity Other AOCI, Net (in thousands) Notional Balance Date Assets of Tax Designated as hedges: Interest rate cap (cash flow hedge) $ 102,500 U.S. dollars December 2021 $ 1,541 $ 479 Not designated as hedges: Interest rate cap $ 102,500 U.S. dollars December 2021 $ 1,541 $ (19) Hedge Position as of December 28, 2017: Final Maturity Other AOCI, Net (in thousands) Notional Balance Date Assets of Tax Designated as hedges: Interest rate cap (cash flow hedge) $ 102,500 U.S. dollars December 2021 $ 710 $ (133) Not designated as hedges: Interest rate cap $ 102,500 U.S. dollars December 2021 $ 710 $ (72) Designated Hedge Gains (Losses) Gains (losses) related to our designated hedge contracts are as follows: Effective Portion Reclassified Effective Portion Recognized in From AOCI to Earnings Other Comprehensive Income (Loss) Thirteen Weeks Ended June 28, June 29, June 28, June 29, (in thousands) 2018 2017 2018 2017 Interest rate caps (cash flow hedges) $ — $ — $ 235 $ (484) Effective Portion Reclassified Effective Portion Recognized in From AOCI to Earnings Other Comprehensive Income (Loss) Twenty-six Weeks Ended June 28, June 29, June 28, June 29, (in thousands) 2018 2017 2018 2017 Interest rate cap (cash flow hedge) $ — $ — $ 665 $ (766) Credit Risk To manage credit risk associated with our interest rate hedging program, we select counterparties based on their credit ratings and limit our exposure to any one counterparty. The counterparties to our derivative contracts are large financial institutions with investment grade credit ratings. To manage our credit risk related to our derivative financial instruments, we periodically monitor the credit risk of our counterparties, limit our exposure in the aggregate and to any single counterparty, and adjust our hedging position, as appropriate. The impact of credit risk, as well as the ability of each party to fulfill its obligations under our derivative financial instruments, is considered in determining the fair value of the contracts. Credit risk has not had a significant effect on the fair value of our derivative contracts. We do not have any credit risk‑related contingent features or collateral requirements with our derivative financial instruments. |
Debt
Debt | 6 Months Ended |
Jun. 28, 2018 | |
Debt | |
Debt | 5. Debt Fair Value of Debt Market risk associated with our fixed and variable rate 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 our estimates of interest rates, maturities, credit risk, and underlying collateral and is classified as Level 3 within the fair value hierarchy. At June 28, 2018 and December 28, 2017, the fair values of our debt were as follows: June 28, December 28, (in thousands) 2018 2017 Total debt at par value $ 164,350 $ 193,500 Less: unamortized discount and debt issuance costs 4,052 4,438 Net carrying amount $ 160,298 $ 189,062 Fair value $ 164,350 $ 193,881 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 28, 2018 | |
Income Taxes | |
Income Taxes | 6. Income Taxes Income Taxes Our effective income tax rates were (2.7)% and 25.9% for the twenty-six weeks ended June 28, 2018 and June 29, 2017, respectively. The lower effective rate for the twenty-six weeks ended June 28, 2018 was primarily due to tax reform passed in December 2017 and the recognition of excess tax benefits related to stock options exercised. Provisional amounts In connection with the Tax Cuts and Jobs Act (the “Act”) passed in December 2017, we remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21% for federal income tax purposes and 3.6% currently estimated for state income tax purposes. We recorded a provisional amount of $17.9 million as of December 28, 2017 related to the remeasurement of certain deferred tax balances, and we have not made any adjustments to this provisional amount during the twenty-six weeks ended June 28, 2018. However, we are still analyzing certain aspects of the Act and refining our calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. The Act also subjects a U.S. shareholder to tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. Given the complexity of the GILTI provisions, we are still evaluating the possible effects of the GILTI provisions and have not yet determined our accounting policy. At June 28, 2018, because we are still evaluating the GILTI provisions and our analysis of future taxable income that may be subject to GILTI, we are unable to make a reasonable estimate and have not reflected any adjustments related to GILTI in our financial statements. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 28, 2018 | |
Commitments and Contingencies. | |
Commitments and Contingencies | 7. Commitments and Contingencies Lease Commitments We lease our corporate office, retail locations and distribution centers through F&D, under long‑term operating lease agreements that expire in various years through 2038. Additionally, certain equipment is leased under short‑term operating leases. Certain lease agreements include escalating rents over the lease terms. We expense rent on a straight‑line basis over the life of the lease, which commences on the date we have the right to control the property. The cumulative expense recognized on a straight‑line basis in excess of the cumulative payments is included in deferred rent in the accompanying balance sheets. Future minimum lease payments under non‑cancelable operating leases (with initial or remaining lease terms in excess of one year) as of June 28, 2018, were: (in thousands) Amount Twenty-six weeks ended December 27, 2018 $ 46,427 2019 106,594 2020 109,808 2021 106,013 2022 99,695 Thereafter 636,396 Total minimum lease payments $ 1,104,933 Lease expense for the twenty-six weeks ended June 28, 2018 and June 29, 2017 was approximately $44,113 thousand and $33,905 thousand, respectively. Litigation We are subject to other various 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 our business activities. We establish reserves for specific legal proceedings when we determine that the likelihood of an unfavorable outcome is probable and the amount of loss can be reasonably estimated. These proceedings are not expected to have a material impact on our consolidated financial position, cash flows or results of operations. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 28, 2018 | |
Stock-Based Compensation | |
Stock-Based Compensation | 8. Stock Based Compensation At our 2018 annual meeting of stockholders held on May 17, 2018, our stockholders approved the Floor & Decor Holdings, Inc. Employee Stock Purchase Plan (“ESPP”). The ESPP will be offered to substantially all employees beginning in the third quarter of fiscal 2018. The ESPP permits eligible employees to purchase shares of our common stock through payroll deductions, subject to certain limitations. The purchase price of the shares under the ESPP in no event will be less than the lesser of 85% of the lower of the fair market value of our common stock on either the first or last trading day of each six-month offering period. There are 1,500,000 shares of the Class A common stock, par value $0.001 per share, approved for issuance under the ESPP. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 28, 2018 | |
Earnings Per Share | |
Earnings Per Share | 9. Earnings Per Share Net Income per Common Share We calculate 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 stock options. The following table shows the computation of basic and diluted earnings per share: Thirteen Weeks Ended Twenty-six Weeks Ended June 28, June 29, June 28, June 29, (in thousands, except per share data) 2018 2017 2018 2017 Net income $ 39,846 $ 20,429 $ 71,717 $ 31,557 Basic weighted average shares outstanding 96,684 90,861 96,199 87,195 Dilutive effect of share based awards 8,253 9,058 8,609 7,705 Diluted weighted average shares outstanding 104,937 99,919 104,808 94,900 Basic earnings per share $ 0.41 $ 0.22 $ 0.75 $ 0.36 Diluted earnings per share $ 0.38 $ 0.20 $ 0.68 $ 0.33 The following awards have been excluded from the computation of dilutive effect of share based awards because the effect would be anti‑dilutive: Thirteen Weeks Ended Twenty-six Weeks Ended June 28, June 29, June 28, June 29, (in thousands) 2018 2017 2018 2017 Stock options 181 892 130 453 |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 28, 2018 | |
Summary of Significant Accounting Policies | |
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. Fiscal years ended December 27, 2018 (“fiscal 2018”) and December 28, 2017 (“fiscal 2017”) include 52 weeks. When a 53-week fiscal year occurs, we report the additional week at the end of the fiscal fourth quarter. 52-week fiscal years consist of thirteen-week periods in the first, second, third and fourth quarters of the fiscal year. |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and our 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 28, 2017 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 2017, filed with the Securities and Exchange Commission (the “SEC”) on March 5, 2018 (the “Annual Report”). Unless indicated otherwise, the information in this quarterly report on Form 10-Q (the “Quarterly Report”) has been adjusted to give effect to a 321.820-for-one stock split of the Company’s outstanding common stock, which was approved by the Company’s board of directors and shareholders on April 13, 2017 and effected on April 24, 2017. Certain prior year amounts have been reclassified in the consolidated financial statements to conform to the current year presentation. 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 and twenty-six weeks ended June 28, 2018 and June 29, 2017 are not necessarily indicative of the results to be expected for the full year. |
Revenue Recognition, Gift Cards and Merchandise Credits and Sales Returns and Allowances | Revenue Recognition We recognize revenue and the related cost of sales when we satisfy the performance obligations in contracts with our customers. Our performance obligations for our retail store sales as well as for orders placed through our website and shipped to our customers are satisfied at the point-of-sale, which is the point at which the customer obtains control of the inventory as described under Accounting Standards Update (ASU) No. 2014-09, "Revenue from Contracts with Customers” (Topic 606). Shipping and handling activities are performed after the customer obtains control of the goods and are accounted for as activities to fulfill the promise to transfer goods, rather than a separate performance obligation as outlined within Topic 606. Payment is due from the customer immediately at the point-of-sale for both retail store sales and website sales. The nature of the goods offered include hard surface flooring and related accessories. We do not perform installation services, and we offer free design services in-store. The transaction price recognized in revenues represents the selling price of the products offered. Sales taxes collected are not recognized as revenue as these amounts are ultimately remitted to the appropriate taxing authorities. Our customers have the right to return the goods sold to them within a reasonable period, typically ninety days. The right of return is an element of variable consideration as defined with Topic 606. We reserve for future returns of previously sold goods based on historical experience and various other assumptions that we believe to be reasonable. This reserve reduces sales and cost of sales as well as establishes a return asset and refund liability. The return asset is included within Inventories, net and the refund liability is included within Accrued Expenses, each respectively on the Condensed Consolidated Balance Sheets. Merchandise exchanges of similar product and price are not considered merchandise returns and, therefore, are excluded when calculating the sales returns reserve. Gift Cards and Merchandise Credits We sell gift cards to our customers in our stores and through our website and issue merchandise credits in our stores. We account for the programs by recognizing a liability at the time the gift card is sold or the merchandise credit is issued. The liability is relieved and revenue is recognized upon redemption. Additionally, we recognize breakage income in proportion to the pattern of rights exercised by the customer when we expect to be entitled to breakage. Net sales related to the estimated breakage are included in net sales in the Condensed Consolidated Statements of Income. We have an agreement with an unrelated third-party who is the issuer of our gift cards and also assumes the liability for unredeemed gift cards. We are not subject to claims under unclaimed property statutes, as the agreement effectively transfers the ownership of such unredeemed gift cards and the related future escheatment liability, if any, to the third-party. Accordingly, in the twenty-six weeks ended June 28, 2018 and June 29, 2017, gift card breakage income of $1,172 thousand and $348 thousand, respectively was recognized in net sales in the Condensed Consolidated Statements of Income, respectively, for such unredeemed gift cards. |
Recent Accounting Pronouncements | Recently Issued Accounting Pronouncements There have been no updates to Recently Issued Accounting Pronouncements since the Annual Report. For information regarding Recently Issued Accounting Pronouncements, see the “Summary of Significant Accounting Policies” section of “Item 8. Financial Statements And Supplementary Data” of our Annual Report. Recently Adopted Accounting Pronouncements In October 2016, the FASB issued ASU No. 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory." This standard update requires an entity to recognize the income tax consequences of intra-entity transfers of assets other than inventory when the transfer occurs. ASU No. 2016-16 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. The amendments in this update should be applied using a modified retrospective approach. The adoption of ASU No. 2016-16 in the first quarter of fiscal 2018 did not have a material impact on the Company's Condensed Consolidated Financial Statements. In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments." The standard update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. ASU No. 2016-15 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. The amendments in this update should be applied using a retrospective approach. The adoption of ASU No. 2016-15 in the first quarter of fiscal 2018 did not have a material impact on the Company's Condensed Consolidated Statements of Cash Flows. In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, "Revenue from Contracts with Customers." ASU No. 2014-09 provided new guidance related to the core principle that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to receive in exchange for those goods or services provided. We adopted this standard using the modified retrospective approach in the first quarter of fiscal 2018, effective December 29, 2017. Under the new guidance, we recognize revenue at the time the customer obtains control of the inventory. The cumulative adjustment upon adoption primarily resulted in a reduction of deferred revenue and related inventories and an increase to retained earnings. The adoption of ASU No. 2014-09 did not have a material impact to the Company’s Condensed Consolidated Financial Statements. |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 28, 2018 | |
Disaggregation of Revenue [Abstract] | |
Disaggregated Revenue | Thirteen Weeks Ended Twenty-six Weeks Ended March 29, 2018 June 28, 2018 June 28, 2018 % of % of % of Product Category Net Sales Net Sales Net Sales Net Sales Net Sales Net Sales Tile $ 117,402 29 % $ 123,408 28 % $ 240,810 29 % Decorative Accessories 78,489 19 82,976 19 161,465 19 Laminate / Luxury Vinyl Plank 66,892 17 77,436 18 144,328 17 Accessories (Installation Materials and Tools) 63,581 16 68,201 16 131,782 16 Wood 46,485 12 48,911 11 95,396 11 Natural Stone 28,006 7 29,533 7 57,539 7 Delivery and Other 2,093 — 3,814 1 5,907 1 Total $ 402,948 100 % $ 434,279 100 % $ 837,227 100 % Thirteen Weeks Ended Twenty-six Weeks Ended March 30, 2017 June 29, 2017 June 29, 2017 % of % of % of Product Category Net Sales Net Sales Net Sales Net Sales Net Sales Net Sales Tile $ 92,682 30 % $ 103,794 30 % $ 196,476 30 % Decorative Accessories 60,300 20 64,975 19 125,275 19 Laminate / Luxury Vinyl Plank 42,539 14 50,943 15 93,482 14 Accessories (Installation Materials and Tools) 48,552 16 54,167 16 102,719 16 Wood 36,993 12 41,789 12 78,782 12 Natural Stone 24,500 8 26,927 8 51,427 8 Delivery and Other 1,730 — 1,452 — 3,182 1 Total $ 307,296 100 % $ 344,047 100 % $ 651,343 100 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 28, 2018 | |
Fair Value Measurements | |
Schedule of Assets (Liabilities) Measured at Fair Value on a Recurring Basis | As of June 28, (in thousands) 2018 Level 1 Level 2 Level 3 Designated as hedges: Interest rate cap (cash flow hedge) $ 1,541 $ — $ 1,541 $ — Not designated as hedges: Interest rate cap $ 1,541 $ — $ 1,541 $ — As of December 28, (in thousands) 2017 Level 1 Level 2 Level 3 Designated as hedges: Interest rate cap (cash flow hedge) $ 710 $ — $ 710 $ — Not designated as hedges: Interest rate cap $ 710 $ — $ 710 $ — |
Derivatives and Risk Manageme19
Derivatives and Risk Management (Tables) | 6 Months Ended |
Jun. 28, 2018 | |
Derivatives and Risk Management | |
Schedule of derivative position | Hedge Position as of June 28, 2018: Final Maturity Other AOCI, Net (in thousands) Notional Balance Date Assets of Tax Designated as hedges: Interest rate cap (cash flow hedge) $ 102,500 U.S. dollars December 2021 $ 1,541 $ 479 Not designated as hedges: Interest rate cap $ 102,500 U.S. dollars December 2021 $ 1,541 $ (19) Hedge Position as of December 28, 2017: Final Maturity Other AOCI, Net (in thousands) Notional Balance Date Assets of Tax Designated as hedges: Interest rate cap (cash flow hedge) $ 102,500 U.S. dollars December 2021 $ 710 $ (133) Not designated as hedges: Interest rate cap $ 102,500 U.S. dollars December 2021 $ 710 $ (72) |
Schedule of gains (losses) related to our designated hedge contracts | Effective Portion Reclassified Effective Portion Recognized in From AOCI to Earnings Other Comprehensive Income (Loss) Thirteen Weeks Ended June 28, June 29, June 28, June 29, (in thousands) 2018 2017 2018 2017 Interest rate caps (cash flow hedges) $ — $ — $ 235 $ (484) Effective Portion Reclassified Effective Portion Recognized in From AOCI to Earnings Other Comprehensive Income (Loss) Twenty-six Weeks Ended June 28, June 29, June 28, June 29, (in thousands) 2018 2017 2018 2017 Interest rate cap (cash flow hedge) $ — $ — $ 665 $ (766) |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 28, 2018 | |
Debt | |
Schedule of fair value debt | June 28, December 28, (in thousands) 2018 2017 Total debt at par value $ 164,350 $ 193,500 Less: unamortized discount and debt issuance costs 4,052 4,438 Net carrying amount $ 160,298 $ 189,062 Fair value $ 164,350 $ 193,881 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 28, 2018 | |
Commitments and Contingencies. | |
Schedule of future minimum lease payment | (in thousands) Amount Twenty-six weeks ended December 27, 2018 $ 46,427 2019 106,594 2020 109,808 2021 106,013 2022 99,695 Thereafter 636,396 Total minimum lease payments $ 1,104,933 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 28, 2018 | |
Earnings Per Share | |
Schedule of computation of basic and diluted earnings per share | Thirteen Weeks Ended Twenty-six Weeks Ended June 28, June 29, June 28, June 29, (in thousands, except per share data) 2018 2017 2018 2017 Net income $ 39,846 $ 20,429 $ 71,717 $ 31,557 Basic weighted average shares outstanding 96,684 90,861 96,199 87,195 Dilutive effect of share based awards 8,253 9,058 8,609 7,705 Diluted weighted average shares outstanding 104,937 99,919 104,808 94,900 Basic earnings per share $ 0.41 $ 0.22 $ 0.75 $ 0.36 Diluted earnings per share $ 0.38 $ 0.20 $ 0.68 $ 0.33 |
Schedule of awards excluded from computation | Thirteen Weeks Ended Twenty-six Weeks Ended June 28, June 29, June 28, June 29, (in thousands) 2018 2017 2018 2017 Stock options 181 892 130 453 |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Details) ft² in Thousands | Apr. 24, 2017 | Jun. 28, 2018ft²statesegmentfacility | Dec. 27, 2018 | Dec. 28, 2017 |
Real Estate Properties [Line Items] | ||||
Number of reportable segments | segment | 1 | |||
Number of states with facilities | state | 22 | |||
Number of distribution centers | 3 | |||
Fiscal year period | 364 days | 364 days | ||
Fiscal quarter period | 91 days | |||
Stock split conversion ratio | 321.820 | |||
Minimum | ||||
Real Estate Properties [Line Items] | ||||
Fiscal year period | 364 days | |||
Maximum | ||||
Real Estate Properties [Line Items] | ||||
Fiscal year period | 371 days | |||
Warehouse Format Store [Member] | ||||
Real Estate Properties [Line Items] | ||||
Number of stores | 88 | |||
Area of facility | ft² | 74 | |||
Small Format Store [Member] | ||||
Real Estate Properties [Line Items] | ||||
Number of stores | 1 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies - Revenues (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 28, 2018 | Jun. 29, 2017 | |
Revenue from Contract with Customer [Abstract] | ||
Number Of Days Customer May Return Merchandise | 90 days | |
Gift card breakage income | $ 1,172 | |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||
Revenue from Contract with Customer [Abstract] | ||
Gift card breakage income | $ 348 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | Jun. 28, 2018 | Dec. 29, 2017 | Dec. 28, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained Earnings (Accumulated Deficit) | $ 199,093 | $ 119,550 | |
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained Earnings (Accumulated Deficit) | $ 7,800 |
Disaggregated Revenue (Details)
Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 28, 2018 | Mar. 29, 2018 | Jun. 29, 2017 | Mar. 30, 2017 | Jun. 28, 2018 | Jun. 29, 2017 | |
Net Sales | $ 434,279 | $ 402,948 | $ 344,047 | $ 307,296 | $ 837,227 | $ 651,343 |
Percentage of Net Sales | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% |
Tile | ||||||
Net Sales | $ 123,408 | $ 117,402 | $ 103,794 | $ 92,682 | $ 240,810 | $ 196,476 |
Percentage of Net Sales | 28.00% | 29.00% | 30.00% | 30.00% | 29.00% | 30.00% |
Decorative Accessories | ||||||
Net Sales | $ 82,976 | $ 78,489 | $ 64,975 | $ 60,300 | $ 161,465 | $ 125,275 |
Percentage of Net Sales | 19.00% | 19.00% | 19.00% | 20.00% | 19.00% | 19.00% |
Laminate Luxury Vinyl Plank | ||||||
Net Sales | $ 77,436 | $ 66,892 | $ 50,943 | $ 42,539 | $ 144,328 | $ 93,482 |
Percentage of Net Sales | 18.00% | 17.00% | 15.00% | 14.00% | 17.00% | 14.00% |
Accessories Installation Materials and Tools | ||||||
Net Sales | $ 68,201 | $ 63,581 | $ 54,167 | $ 48,552 | $ 131,782 | $ 102,719 |
Percentage of Net Sales | 16.00% | 16.00% | 16.00% | 16.00% | 16.00% | 16.00% |
Wood | ||||||
Net Sales | $ 48,911 | $ 46,485 | $ 41,789 | $ 36,993 | $ 95,396 | $ 78,782 |
Percentage of Net Sales | 11.00% | 12.00% | 12.00% | 12.00% | 11.00% | 12.00% |
Natural Stone | ||||||
Net Sales | $ 29,533 | $ 28,006 | $ 26,927 | $ 24,500 | $ 57,539 | $ 51,427 |
Percentage of Net Sales | 7.00% | 7.00% | 8.00% | 8.00% | 7.00% | 8.00% |
Delivery and Other | ||||||
Net Sales | $ 3,814 | $ 2,093 | $ 1,452 | $ 1,730 | $ 5,907 | $ 3,182 |
Percentage of Net Sales | 1.00% | 0.00% | 0.00% | 0.00% | 1.00% | 1.00% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 28, 2018 | Dec. 28, 2017 |
Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate cap | $ 1,541 | $ 710 |
Not Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate cap | 1,541 | 710 |
Level 1 | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate cap | 0 | 0 |
Level 1 | Not Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate cap | 0 | 0 |
Level 2 | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate cap | 1,541 | 710 |
Level 2 | Not Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate cap | 1,541 | 710 |
Level 3 | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate cap | 0 | 0 |
Level 3 | Not Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate cap | $ 0 | $ 0 |
Derivatives and Risk Manageme28
Derivatives and Risk Management (Details) - Interest Rate Cap - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 28, 2018 | Jun. 29, 2017 | Jun. 28, 2018 | Jun. 29, 2017 | Dec. 28, 2017 | |
Cash Flow Hedging | |||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | |||||
Gain (loss) reclassified from AOCI to earnings, effective portion | $ 0 | $ 0 | $ 0 | $ 0 | |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net [Abstract] | |||||
Gain (loss) recognition in other comprehensive income (loss), effective portion | 235 | $ (484) | 665 | $ (766) | |
Designated as Hedging Instrument [Member] | Cash Flow Hedging | |||||
Derivative [Line Items] | |||||
Notional amount | 102,500 | 102,500 | $ 102,500 | ||
Derivative Asset, Noncurrent | 1,541 | 1,541 | 710 | ||
AOCI, Net of Tax | 479 | 479 | (133) | ||
Not Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Notional amount | 102,500 | 102,500 | 102,500 | ||
Derivative Asset, Noncurrent | 1,541 | 1,541 | 710 | ||
AOCI, Net of Tax | $ (19) | $ (19) | $ (72) |
Debt - Fair Value of Debt (Deta
Debt - Fair Value of Debt (Details) - USD ($) $ in Thousands | Jun. 28, 2018 | Dec. 28, 2017 |
Debt Instrument [Line Items] | ||
Total debt at par value | $ 164,350 | $ 193,500 |
Less: unamortized discount and debt issuance costs | 4,052 | 4,438 |
Net carrying amount | 160,298 | 189,062 |
Level 3 | ||
Debt Instrument [Line Items] | ||
Fair value | $ 164,350 | $ 193,881 |
Income Taxes (Details)
Income Taxes (Details) | 6 Months Ended | |
Jun. 28, 2018 | Jun. 29, 2017 | |
Income Taxes | ||
Effective income tax rate (as a percent) | (2.70%) | 25.90% |
Income Taxes - Tax Rate (Detail
Income Taxes - Tax Rate (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 28, 2018 | Dec. 28, 2017 | |
Effect of Tax Cuts and Jobs Act of 2017 [Abstract] | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 3.60% | |
Provisional amount related to Tax Cuts and Jobs Act of 2017 | $ 17.9 |
Commitments and Contingencies32
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 28, 2018 | Jun. 29, 2017 | |
Future minimum lease payments under non cancelable operating leases | ||
Twenty-six weeks ended December 27, 2018 | $ 46,427 | |
2,019 | 106,594 | |
2,020 | 109,808 | |
2,021 | 106,013 | |
2,022 | 99,695 | |
Thereafter | 636,396 | |
Total minimum lease payments | 1,104,933 | |
Lease expense | $ 44,113 | $ 33,905 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - $ / shares | 6 Months Ended | ||
Jun. 28, 2018 | May 17, 2018 | Dec. 28, 2017 | |
Class A Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | |
2017 Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair market value measurement period | 6 months | ||
2017 Employee Stock Purchase Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Purchase price, as a percentage of fair market value | 85.00% | ||
2017 Employee Stock Purchase Plan | Class A Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of stock authorized under the plan | 1,500,000 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2018 | Jun. 29, 2017 | Jun. 28, 2018 | Jun. 29, 2017 | |
Earnings Per Share | ||||
Net income | $ 39,846 | $ 20,429 | $ 71,717 | $ 31,557 |
Basic weighted average shares outstanding | 96,684 | 90,861 | 96,199 | 87,195 |
Dilutive effect of share based awards | 8,253 | 9,058 | 8,609 | 7,705 |
Diluted weighted average shares outstanding | 104,937 | 99,919 | 104,808 | 94,900 |
Basic earnings per share | $ 0.41 | $ 0.22 | $ 0.75 | $ 0.36 |
Diluted earnings per share | $ 0.38 | $ 0.20 | $ 0.68 | $ 0.33 |
Earnings Per Share - Dilutive e
Earnings Per Share - Dilutive effects of share based awards (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2018 | Jun. 29, 2017 | Jun. 28, 2018 | Jun. 29, 2017 | |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares excluded from the computation of diluted earnings (per share) | 181 | 892 | 130 | 453 |