Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 27, 2018 | Feb. 20, 2019 | Jun. 28, 2018 | |
Document and Entity Information | |||
Entity Registrant Name | Floor & Decor Holdings, Inc. | ||
Entity Central Index Key | 1,507,079 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 27, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-27 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Shell Company | false | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 2.3 | ||
Entity Common Stock, Shares Outstanding | 97,727,273 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,018 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 27, 2018 | Dec. 28, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 644 | $ 556 |
Income taxes receivable | 4,324 | 12,472 |
Receivables, net | 67,527 | 54,041 |
Inventories, net | 471,014 | 427,950 |
Prepaid expenses and other current assets | 15,949 | 8,193 |
Total current assets | 559,458 | 503,212 |
Fixed assets, net | 328,366 | 220,952 |
Intangible assets, net | 109,330 | 109,362 |
Goodwill | 227,447 | 227,447 |
Other assets | 9,490 | 7,019 |
Total long-term assets | 674,633 | 564,780 |
Total assets | 1,234,091 | 1,067,992 |
Current liabilities: | ||
Current portion of term loans | 3,500 | 3,500 |
Trade accounts payable | 313,503 | 258,730 |
Accrued expenses and other current liabilities | 82,038 | 74,547 |
Deferred revenue | 5,244 | 22,523 |
Total current liabilities | 404,285 | 359,300 |
Term loans | 141,834 | 144,562 |
Revolving line of credit | 41,000 | |
Deferred rent | 36,980 | 25,570 |
Deferred income tax liabilities, net | 26,838 | 27,218 |
Tenant improvement allowances | 37,295 | 26,779 |
Other liabilities | 2,550 | 703 |
Total long-term liabilities | 245,497 | 265,832 |
Total liabilities | 649,782 | 625,132 |
Commitments and contingencies | ||
Capital stock: | ||
Additional paid-in capital | 340,462 | 323,419 |
Accumulated other comprehensive income (loss), net | 186 | (205) |
Retained earnings | 243,563 | 119,550 |
Total stockholders' equity | 584,309 | 442,860 |
Total liabilities and stockholders' equity | 1,234,091 | 1,067,992 |
Class A Common Stock | ||
Capital stock: | ||
Common stock | $ 98 | $ 96 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 27, 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 | 97,588,539 | 95,509,179 |
Common stock, shares outstanding | 97,588,539 | 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 | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Income Statement [Abstract] | |||
Net Sales | $ 1,709,848 | $ 1,384,767 | $ 1,050,759 |
Type of Revenue [Extensible List] | us-gaap:ProductMember | ||
Cost of sales | $ 1,007,580 | 812,203 | 621,497 |
Type of Cost, Good or Service [Extensible List] | us-gaap:ProductMember | ||
Gross profit | $ 702,268 | 572,564 | 429,262 |
Operating expenses: | |||
Selling and store operating | 439,495 | 353,647 | 271,876 |
General and administrative | 105,327 | 84,661 | 64,025 |
Pre-opening | 26,145 | 16,485 | 13,732 |
Litigation settlement | 10,500 | ||
Total operating expenses | 570,967 | 454,793 | 360,133 |
Operating income | 131,301 | 117,771 | 69,129 |
Interest expense | 8,917 | 13,777 | 12,803 |
Loss on extinguishment of debt | 5,442 | 1,813 | |
Income before income taxes | 122,384 | 98,552 | 54,513 |
Provision for income taxes | 6,197 | (4,236) | 11,474 |
Net income | $ 116,187 | $ 102,788 | $ 43,039 |
Basic earnings per share | $ 1.20 | $ 1.13 | $ 0.52 |
Diluted earnings per share | $ 1.11 | $ 1.03 | $ 0.49 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 116,187 | $ 102,788 | $ 43,039 |
Other comprehensive income (loss) - change in fair value of hedge instruments, net of tax | 391 | (381) | 276 |
Total comprehensive income | $ 116,578 | $ 102,407 | $ 43,315 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common stockClass A Common Stock | Common stockClass B Common Stock | Common stockClass C Common Stock | Additional paid-in capitalRestatement Adjustment [Member] | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained earningsRestatement Adjustment [Member] | Retained earnings | Class A Common Stock | Class B Common Stock | Class C Common Stock | Restatement Adjustment [Member] | Total |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Cumulative effect from adoption of ASU No. 2016-09 | Accounting Standards Update 2016-09 [Member] | $ 238 | $ (148) | $ 90 | ||||||||||
Balance at Dec. 31, 2015 | $ 77 | $ 6 | $ 264,288 | $ (100) | $ 48,094 | $ 312,365 | |||||||
Balance (in shares) at Dec. 31, 2015 | 76,847,000 | 251,000 | 6,275,000 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Stock-based compensation expense | 3,182 | 47 | 3,229 | ||||||||||
Exercise of stock options | 284 | $ 284 | |||||||||||
Exercise of stock options (in shares) | 145,000 | 145,140 | |||||||||||
Tax benefit/deficiency from employee stock options | 276 | $ 276 | |||||||||||
Other comprehensive gain, net of tax | 276 | ||||||||||||
Dividend declared | (150,722) | (74,278) | (225,000) | ||||||||||
Net income | 43,039 | 43,039 | |||||||||||
Balance at Dec. 29, 2016 | $ 77 | $ 6 | 117,270 | 176 | 16,754 | 134,283 | |||||||
Balance (in shares) at Dec. 29, 2016 | 76,847,000 | 396,000 | 6,275,000 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Stock-based compensation expense | 4,951 | 8 | 4,959 | ||||||||||
Conversion of Class B common stock (in shares) | 396,000 | (396,000) | |||||||||||
Conversion of Class C Common Stock | $ 6 | $ (6) | |||||||||||
Conversion of Class C Common Stock (in shares) | 6,275,000 | (6,275,000) | |||||||||||
Exercise of stock options | $ 2 | 8,872 | $ 8,874 | ||||||||||
Exercise of stock options (in shares) | 1,828,000 | 1,828,339 | |||||||||||
IPO proceeds | $ 10 | 192,326 | $ 192,336 | ||||||||||
Number of shares issued | 10,147,000 | ||||||||||||
Issuance of restricted stock award (in shares) | 15,000 | ||||||||||||
Other comprehensive gain, net of tax | (381) | (381) | |||||||||||
Net income | 102,788 | 102,788 | |||||||||||
Balance at Dec. 28, 2017 | $ 96 | 323,419 | (205) | 119,550 | 442,860 | ||||||||
Balance (in shares) at Dec. 28, 2017 | 95,509,000 | 95,509,179 | 0 | 0 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Cumulative effect from adoption of ASU No. 2016-09 | Accounting Standards Update 2016-09 [Member] | $ 7,826 | $ 7,826 | |||||||||||
Stock-based compensation expense | 6,514 | 6,514 | |||||||||||
Exercise of stock options | $ 2 | 10,529 | $ 10,531 | ||||||||||
Exercise of stock options (in shares) | 2,069,000 | 2,069,195 | |||||||||||
Issuance of restricted stock award (in shares) | 10,000 | ||||||||||||
Other comprehensive gain, net of tax | 391 | $ 391 | |||||||||||
Net income | 116,187 | 116,187 | |||||||||||
Balance at Dec. 27, 2018 | $ 98 | $ 340,462 | $ 186 | $ 243,563 | $ 584,309 | ||||||||
Balance (in shares) at Dec. 27, 2018 | 97,588,000 | 97,588,539 | 0 | 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Operating activities | |||
Net income | $ 116,187 | $ 102,788 | $ 43,039 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 51,992 | 38,062 | 28,604 |
Non-cash loss on early extinguishment of debt | 5,442 | 1,813 | |
Loss on asset disposals | 23 | 128 | 451 |
Amortization of tenant improvement allowances | (4,494) | (3,311) | (2,561) |
Deferred income taxes | (968) | (557) | (5,536) |
Interest cap derivative contracts | (212) | ||
Stock based compensation expense | 6,514 | 4,959 | 3,229 |
Changes in operating assets and liabilities: | |||
Receivables, net | (13,486) | (19,508) | (10,793) |
Inventories, net | (53,557) | (134,248) | (21,133) |
Other assets | (9,921) | (1,591) | (4,817) |
Trade accounts payable | 54,773 | 100,264 | 11,145 |
Accrued expenses and other current liabilities | (1,731) | 9,485 | 27,244 |
Income taxes | 6,221 | (18,259) | 8,271 |
Deferred revenue | 3,002 | 8,067 | 2,311 |
Deferred rent | 14,455 | 9,243 | 3,870 |
Tenant improvement allowances | 15,010 | 7,984 | 4,244 |
Other | 1,816 | 259 | 75 |
Net cash provided by operating activities | 185,624 | 109,207 | 89,456 |
Investing activities | |||
Purchases of fixed assets | (151,397) | (102,253) | (74,648) |
Net cash used in investing activities | (151,397) | (102,253) | (74,648) |
Financing activities | |||
Borrowings on revolving line of credit | 217,050 | 236,700 | 171,850 |
Payments on revolving line of credit | (258,050) | (245,700) | (214,750) |
Proceeds from term loans | 362,000 | ||
Payments on term loans | (3,500) | (197,500) | (98,334) |
Prepayment penalty on term loan extinguishment | (179) | ||
Cash dividends | (225,000) | ||
Net proceeds from initial public offering | 192,336 | ||
Proceeds from exercise of stock options | 10,531 | 8,874 | 284 |
Debt issuance costs | (170) | (1,559) | (10,546) |
Net cash used in financing activities | (34,139) | (6,849) | (14,675) |
Net (decrease) increase in cash and cash equivalents | 88 | 105 | 133 |
Cash and cash equivalents, beginning of the period | 556 | 451 | 318 |
Cash and cash equivalents, end of the period | 644 | 556 | 451 |
Supplemental disclosures of cash flow information | |||
Cash paid for interest | 7,563 | 15,748 | 6,922 |
Cash paid for income taxes | 1,082 | 14,392 | 8,929 |
Fixed assets accrued at the end of the period | $ 15,120 | 8,521 | 5,387 |
Fixed assets acquired as part of lease - paid for by lessor | $ 1,786 | $ 2,290 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 27, 2018 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Nature of Business Floor & Decor Holdings, Inc. (f/k/a FDO 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, vinyl, 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 December 27, 2018, the Company, through its wholly owned subsidiary, Floor and Decor Outlets of America, Inc. (“F&D”), operates 100 warehouse-format stores, which average 75,000 square feet, and one small-format standalone design center in 28 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”), December 28, 2017 (“fiscal 2017”), and December 29, 2016 (“fiscal 2016”) 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 consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. Unless indicated otherwise, the information in this Annual 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. Cash and Cash Equivalents Cash consists of currency and demand deposits with banks. Receivables Receivables consist primarily of amounts due from credit card companies, receivables from vendors and tenant improvement allowances owed by landlords. The Company typically collects its credit card receivables within three to five business days of the underlying sale to the customer. The Company has agreements with a majority of its large merchandise vendors that allow for specified rebates based on purchasing volume. Generally, these agreements are on an annual basis, and the Company collects the rebates subsequent to its fiscal year end. Additionally, the Company has agreements with substantially all vendors that allow for the return of certain merchandise throughout the normal course of business. When inventory is identified to return to a vendor, it is removed from inventory and recorded as a receivable on the Consolidated Balance Sheet, and any variance between capitalized inventory cost associated with the return and the expected vendor reimbursement is expensed in Cost of sales in the Consolidated Statement of Income when the inventory is identified to be returned to the vendor. The Company reserves for estimated uncollected receivables based on historical trends, which historically have been immaterial. The allowance for doubtful accounts as of December 27, 2018 and December 28, 2017, was $184 thousand and $349 thousand, respectively. Credit Program Credit is offered to the Company's customers through a proprietary credit card underwritten by third-party financial institutions and at no recourse to the Company. Beginning in fiscal 2018, the Company began offering limited credit to its commercial clients. The total exposure at the end of fiscal 2018 was $251 thousand. Inventory Valuation and Shrinkage Inventories consist of merchandise held for sale and are stated at the lower of cost and net realizable value. When evidence exists that the net realizable value of inventory is lower than its cost, the difference is recorded in Cost of sales in the Consolidated Statement of Income as a loss in the period in which it occurs. The Company determines inventory costs using the weighted average cost method. The Company capitalizes transportation, duties and other costs to get product to its retail locations. The Company records reserves for estimated losses related to shrinkage and other amounts that are otherwise not expected to be fully recoverable. These reserves are calculated based on historical shrinkage, selling price, margin and current business trends. The estimates have calculations that require management to make assumptions based on the current rate of sales, age, salability and profitability of inventory, historical percentages that can be affected by changes in the Company's merchandising mix, customer preferences and changes in actual shrinkage trends. These reserves totaled $4,265 thousand and $2,936 thousand as of December 27, 2018 and December 28, 2017, respectively. Physical inventory counts and cycle counts are performed on a regular basis in each store and distribution center to ensure that amounts reflected in the accompanying Consolidated Balance Sheets are properly stated. During the period between physical inventory counts in our stores, the Company accrues for estimated losses related to shrinkage on a store-by-store basis. Shrinkage is the difference between the recorded amount of inventory and the physical inventory. Shrinkage may occur due to theft or loss, among other things. Fixed Assets Fixed assets consist primarily of furniture, fixtures and equipment, leasehold improvements (including those that are reimbursed by landlords as tenant improvement allowances), computer software and hardware and land. Fixed assets are stated at cost less accumulated depreciation utilizing the straight-line method over the assets’ estimated useful lives. Leasehold improvements are amortized using the straight-line method over the shorter of (i) the original term of the lease, (ii) renewal term of the lease if the renewal is reasonably expected or (iii) the useful life of the improvement. The Company’s fixed assets are depreciated using the following estimated useful lives: Useful Life Furniture, fixtures and equipment 2 - 7 years Leasehold improvements 10 - 25 years Computer software and hardware 3 - 7 years Land Indefinite The cost and related accumulated depreciation of assets sold or otherwise disposed are removed from the accounts, and the related gain or loss is reported in the Consolidated Statements of Income. . Capitalized Software Costs The Company capitalizes certain costs related to the acquisition and development of software and amortizes these costs using the straight-line method over the estimated useful life of the software. Certain development costs not meeting the criteria for capitalization are expensed as incurred. Goodwill and Other Indefinite‑Lived Intangible Assets Goodwill represents the excess of purchase price over the fair value of net assets acquired. The Company does not amortize goodwill and other intangible assets with indefinite lives resulting from business combinations but, in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350, Intangibles—Goodwill and Other , does assess the recoverability of goodwill annually in the fourth quarter of each fiscal year, or more often if indicators warrant, by determining whether the fair value of the reporting unit exceeds its carrying value. In accordance with ASC 350, identifiable intangible assets with finite lives are amortized over their estimated useful lives. Each year the Company may assess qualitative factors to determine whether it is more likely than not that the fair value of the single reporting unit is less than its carrying amount as a basis for determining whether it is necessary to complete quantitative impairment assessments. The Company completed a qualitative assessment in fiscal 2018. Based on such goodwill impairment analysis performed qualitatively as of October 26, 2018, the Company determined that the fair value of its reporting unit is in excess of the carrying value. No events or changes in circumstances have occurred since the date of the Company's most recent annual impairment test that would more likely than not reduce the fair value of the reporting unit below its carrying amount. The Company annually (or more frequently if there are indicators of impairment) evaluates whether its indefinite-lived asset continues to have an indefinite life or have impaired carrying values due to changes in the asset or its related risks. The impairment review is performed by comparing the carrying value of the indefinite-lived intangible asset to its estimated fair value. If the recorded carrying value of the indefinite-lived asset exceeds its estimated fair value, an impairment charge is recorded to write the asset down to its estimated fair value. The estimated lives of the Company’s intangible assets are as follows: Useful Life Trade names Indefinite Vendor relationships 10 years The Company’s goodwill and other indefinite‑lived intangible assets impairment loss calculations contain uncertainties because they require management to make significant judgments in estimating the fair value of the Company’s reporting unit and indefinite‑lived intangible asset, including the projection of future cash flows, assumptions about which market participants are the most comparable, the selection of discount rates and the weighting of the income and market approaches. These calculations contain uncertainties because they require management to make assumptions such as estimating economic factors and the profitability of future business operations and, if necessary, the fair value of the reporting unit’s assets and liabilities among others. Further, the Company’s ability to realize the future cash flows used in its fair value calculations is affected by factors such as changes in economic conditions, changes in the Company’s operating performance and changes in the Company’s business strategies. Significant changes in any of the assumptions involved in calculating these estimates could affect the estimated fair value of the Company’s reporting unit and indefinite‑lived intangible assets and could result in impairment charges in a future period. Long‑Lived Assets Long-lived assets, such as fixed assets and intangible assets with finite lives, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of an asset, a product recall or an adverse action by a regulator. If the sum of the estimated undiscounted future cash flows related to the asset is less than the asset’s carrying value, the Company recognizes a loss equal to the difference between the carrying value and the fair value, usually determined by the estimated discounted cash flow analysis of the asset. Since there is typically no active market for the Company’s definite-lived intangible asset, the Company estimates fair value based on expected future cash flows at the time they are identified. The Company estimates future cash flows based on store-level historical results, current trends and operating and cash flow projections. The Company amortizes the asset with a finite life over its estimated useful life on a straight-line basis. This amortization methodology best matches the pattern of economic benefit that is expected from the definite-lived intangible asset. The Company evaluates the useful life of its intangible asset on an annual basis. Tenant Improvement Allowances and Deferred Rent The Company accounts for tenant improvement allowances and deferred rent as liabilities or assets on the balance sheet. Tenant improvement allowances are amounts received from a lessor for improvements to leased properties and are amortized against rent expense over the life of the respective leases. Fixed rents are recognized ratably over the initial non-cancellable lease term. Deferred rent represents differences between the actual cash paid for rent and the amount of straight-line rent over the initial non-cancellable term. Self‑Insurance Reserves The Company is partially self-insured for workers’ compensation and general liability claims less than certain dollar amounts and maintains insurance coverage with individual and aggregate limits. The Company also has a basket aggregate limit to protect against losses exceeding $8.6 million (subject to adjustment and certain exclusions) for workers' compensation claims and general liability claims. The Company’s liabilities represent estimates of the ultimate cost for claims incurred, including loss adjusting expenses, as of the balance sheet date. The estimated liabilities are not discounted and are established based upon analysis of historical data, actuarial estimates, regulatory requirements, an estimate of claims incurred but not yet reported and other relevant factors. Management utilizes independent third-party actuarial studies to help assess the liability on a regular basis. Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Asset Retirement Obligations An asset retirement obligation (“ARO”) represents a legal obligation associated with the retirement of a tangible long-lived asset that is incurred upon the acquisition, construction, development or normal operation of that long-lived asset. The Company’s AROs are primarily associated with leasehold improvements that, at the end of a lease, the Company is contractually obligated to remove in order to comply with certain lease agreements. The ARO is recorded in Other long-term liabilities on the Consolidated Balance Sheets and will be subsequently adjusted for changes in fair value. The associated estimated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset and depreciated over its useful life. Changes in (i) inflation rates and (ii) the estimated costs, timing and extent of future store closure activities each result in (a) a current adjustment to the recorded liability and related asset and (b) a change in the liability and asset amounts to be recorded prospectively. Any changes related to the assets are then recognized in accordance with our depreciation policy, which would generally result in depreciation expense being recognized prospectively over the shorter of the remaining lease term or estimated useful life. Fair Value Measurements—Debt The Company estimates fair values in accordance with ASC 820, Fair Value Measurement . ASC 820 provides a framework for measuring fair value and requires disclosures 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 The fair values of certain of the Company’s debt instruments have been determined by the Company utilizing Level 3 inputs, such as available market information and appropriate valuation methodologies, including the rates for similar instruments and the discounted cash flows methodology. Derivative Financial Instruments The Company uses derivative financial instruments to maintain a portion of its long-term debt obligations at a targeted balance of fixed and variable interest rate debt to manage its risk associated with fluctuations in interest rates. We recognize derivative contracts at fair value on our Consolidated Balance Sheets. The fair value is calculated utilizing Level 2 inputs. Unrealized changes in the fair value of hedged derivative instruments are recorded in Accumulated other comprehensive (loss) income within the equity section of our Consolidated Balance Sheets. The effective portion of the gain or loss on the derivatives is reported as a component of Comprehensive income within the Consolidated Statements of Comprehensive Income 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 changes in fair values of the instruments are not highly effective, the ineffective portion of the hedge is immediately recognized in earnings. We perform an assessment of the effectiveness of our derivative contracts designated as hedges, including assessing the possibility of counterparty default. If we determine that a derivative is no longer expected to be highly effective, we discontinue hedge accounting prospectively and recognize subsequent changes in the fair value of the hedge in earnings. We believe our derivative contracts, which continue to be designated as cash flow hedges, and which consist of interest rate cap contracts, will continue to be highly effective in offsetting changes in cash flow attributable to floating interest rate risk. See footnote 8. Derivatives and Risk Management for additional information. . Use of Estimates The preparation of the financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales and expenses during the period. Significant items subject to such estimates and assumptions include the carrying amounts of fixed assets and intangibles, asset retirement obligations, allowances for accounts receivable and inventories, reserves for workers' compensation and general liability claims incurred but not reported and deferred income tax assets and liabilities. Actual results could differ from these estimates. 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 90 days. The right of return is an element of variable consideration as defined within 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 as defined with Topic 606. For the fiscal year ended December 27, 2018, the return asset is included within Prepaid expenses and other current assets and the refund liability is included within Accrued expenses and other current liabilities, each respectively on the Consolidated Balance Sheets. We adopted the standard using the modified retrospective transition method within Topic 606; therefore, we accounted for the return asset and all provisions of Topic 606 prospectively. The return asset is included in Inventories, net on the December 28, 2017 Consolidated Balance Sheets. The refund liability under Topic 605 and Topic 606 is included within Accrued expenses and other current liabilities. 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 Consolidated Statement of Income. We have an agreement with an unrelated third-party who is the issuer of the Company's gift cards and also assumes the liability for unredeemed gift cards. The Company is 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. Gift card breakage is recognized based upon historical redemption patterns and represents the balance of gift cards for which the Company believes the likelihood of redemption by the customer is remote. Accordingly, in fiscal 2018, fiscal 2017, and fiscal 2016 gift card breakage income of $1,584 thousand, $757 thousand, and $627 thousand was recognized in net sales in the Consolidated Statements of Income, respectively, for such unredeemed gift cards. Sales Returns and Allowances The Company accrues for estimated sales returns based on historical sales return results. The allowance for sales returns at December 27, 2018 and December 28, 2017, was $8,335 thousand and $7,189 thousand, respectively. Merchandise exchanges of similar product and price are not considered merchandise returns and, therefore, are excluded when calculating the sales returns reserve. Cost of Sales Cost of sales consists of merchandise costs as well as freight to transport inventory to our distribution centers and stores, and duty and other costs that are incurred to distribute the merchandise to our stores. Cost of sales also includes shrinkage, damaged product disposals, distribution, warehousing, sourcing and compliance cost and arranging and paying for freight to deliver products to customers. The Company receives cash consideration from certain vendors related to vendor allowances and volume rebates, which is recorded as a reduction of costs of sales when the inventory is sold or as a reduction of the carrying value of inventory if the inventory is still on hand. Vendor Rebates and Allowances Vendor allowances consist primarily of volume rebates that are earned as a result of attaining certain inventory purchase levels and advertising allowances or incentives for the promotion of vendors' products. These vendor allowances are accrued, based on annual projections, as earned. Vendor allowances earned are initially recorded as a reduction to the carrying value of inventory and a subsequent reduction in cost of sales when the related product is sold. Certain incentive allowances that are reimbursements of specific, incremental and identifiable costs incurred to promote vendors’ products are recorded as an offset against these promotional expenses. Total Operating Expenses Total operating expenses consist primarily of store and administrative personnel wages and benefits, infrastructure expenses, supplies, fixed asset depreciation, store and corporate facility expenses, pre-opening costs, training and advertising costs. Credit card fees, insurance, personal property taxes, legal expenses and other miscellaneous operating costs are also included. Advertising The Company expenses advertising costs as the advertising takes place. Advertising costs incurred during the years ended December 27, 2018, December 28, 2017, and December 29, 2016, were $55,283 thousand, $43,560 thousand, and $33,497 thousand respectively, and are included in Selling and store operating expenses and Pre‑opening expenses in the accompanying Consolidated Statements of Income. Pre‑Opening Expenses The Company accounts for non-capital operating expenditures incurred prior to opening a new store as "pre-opening" expenses in its Consolidated Statements of Income. The Company's pre-opening expenses begin on average three to six months in advance of a store opening or relocating due to, among other things, the amount of time it takes to prepare a store for its grand opening. Pre-opening expenses primarily include: advertising, rent, staff training, staff recruiting, utilities, personnel and equipment rental. A store is considered to be relocated if it is closed temporarily and re-opened within the same primary trade area. Pre‑opening expenses for the years ended December 27, 2018, December 28, 2017, and December 29, 2016, totaled $26,145 thousand, $16,485 thousand, and $13,732 thousand, respectively. Loss on Early Extinguishment of Debt On May 2, 2017, the Company completed its initial public offering (“IPO”), pursuant to which it sold an aggregate of 10,147,025 shares of Class A common stock, par value $0.001 per share. The Company received aggregate net proceeds of approximately $192.0 million after deducting underwriting discounts and commissions and other offering expenses. The Company used net proceeds from the IPO of approximately $192.0 million to repay a portion of the amounts outstanding under the Term Loan Facility, including accrued and unpaid interest. The partial paydown resulted in a loss on extinguishment of debt in the amount of approximately $5.4 million related to unamortized original issue discount and unamortized deferred debt issuance costs. Stock‑Based Compensation The Company accounts for employee stock options, restricted stock, and employee stock purchase plans in accordance with ASC 718, Compensation – Stock Compensation . The Company obtains independent third-party valuation studies to assist it with determining the grant date fair value of our stock price. Stock options are granted with exercise prices equal to or greater than the fair market value on the date of grant as authorized by the board of directors or compensation committee. Options granted have vesting provisions ranging from one to five years. Stock option grants are generally subject to forfeiture if employment terminates prior to vesting. The Company has selected the Black-Scholes option pricing model for estimating the grant date fair value of stock option awards granted. The Company bases the risk-free interest rate on the yield of a zero coupon U.S. Treasury security with a maturity equal to the expected life of the option from the date of the grant. The Company estimates the dividend yield to be zero as the Company does not intend to pay dividends in the future. The Company estimates the volatility of the share price of its common stock by considering the historical volatility of the stock of similar public entities. The Company considers a number of factors in determining the appropriateness of the public entities included in the volatility assumption, including the entity's life cycle stage, growth profile, size, financial leverage and products offered. Stock-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense over the requisite service period based on the number of years for which the requisite service is expected to be rendered. Income Taxes The Company accounts for income taxes under the liability method in accordance with ASC 740, Income Taxes , which requires the recognition of deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts and tax basis of existing assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Changes in tax laws and rates could affect recorded deferred tax assets and liabilities in the future. The effect on deferred tax assets and liabilities of a change in tax laws or rates is recognized in the period that includes the enactment date of such a change. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which the associated temporary differences became deductible. On a quarterly basis, the Company evaluates whether it is more likely than not that its deferred tax assets will be realized in the future and concludes whether a valuation allowance must be established. The Company includes any estimated interest and penalties on tax-related matters in income taxes payable and income tax expense. The Company accounts for uncertain tax positions in accordance with ASC 740. ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements using a two-step process for evaluating tax positions taken, or expected to be taken, on a tax return. The Company may only recognize the tax benefit from an uncertain tax position if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. Uncertain tax positions require determinations and estimated liabilities to be made based on provisions of the tax law, which may be subject to change or varying interpretation. The Company does not believe it has any material risks related to uncertain tax positions. Recent Accounting Pronouncements In January 2017, the FASB issued ASU No. 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” This standard simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. ASU No. 2017-04 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted after January 1, 2017. The Company elected to early adopt this standard during the fourth quarter of 2017. The amendments in this update should be applied using a prospective approach. The adoption of ASU No. 2017-04 did not have a material impact on the Company's Consolidated Financial Statements. 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 did not have a material impact on the Company's Consolidated Financial Sta |
Revenues
Revenues | 12 Months Ended |
Dec. 27, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | 2. Revenues Adoption of ASC Topic 606, “Revenue from Contracts with Customers” On December 29, 2017, the Company 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 28, 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). The Company 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 it allows customers to store their merchandise at its 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 fiscal year ended December 27, 2018. Deferred Revenue Under Topic 605, the Company recognized revenue for certain transactions for which it allowed customers to store their merchandise at its 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 Consolidated Balance Sheet as of December 28, 2017. Under Topic 606, the Company evaluated the bill-and-hold criteria, and now recognizes 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 was 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 the Company expects to be entitled to breakage. The amount of revenue related to gift card breakage income in the cumulative transition adjustment, and for the fiscal year ended December 27, 2018 was immaterial to the Consolidated Financial Statements. Disaggregated Revenue The Company operates as a specialty retailer of hard surface flooring and related accessories through retail stores located in the United States and through its website. The Company’s chief operating decision maker is its Chief Executive Officer who reviews the Company’s consolidated financial information for purposes of allocating resources and evaluating the Company’s financial performance. Accordingly, the Company concluded it has one reportable segment. The following table presents the net sales of each major product category for each of the last three fiscal years (in thousands): Fiscal Year Ended December 27, 2018 December 28, 2017 December 29, 2016 % of % of % of Product Category Net Sales Net Sales Net Sales Net Sales Net Sales Net Sales Tile $ 476,337 27 % $ 419,745 30 % $ 325,433 31 % Decorative Accessories 325,139 19 257,684 19 188,371 18 Laminate / Luxury Vinyl Plank 316,109 18 208,238 15 131,447 12 Installation Materials and Tools 272,994 16 217,427 16 165,330 16 Wood 192,087 12 167,152 12 142,751 14 Natural Stone 113,565 7 104,670 8 90,866 9 Delivery and Other 13,617 1 9,851 — 6,561 — Total $ 1,709,848 100 % $ 1,384,767 100 % $ 1,050,759 100 % |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 27, 2018 | |
Accrued Expenses | |
Accrued Expenses and Other Current Liabilities | 3. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following (in thousands): December 27, December 28, 2018 2017 Accrued incentive compensation $ 12,473 $ 17,218 Sales tax payable 12,046 9,171 Insurance reserve- incurred but not reported 8,229 6,390 Other 49,290 41,768 Accrued Expenses $ 82,038 $ 74,547 |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 27, 2018 | |
Fixed Assets | |
Fixed Assets | 4. Fixed Assets Fixed assets as of December 27, 2018 and December 28, 2017, consisted of the following (in thousands): December 27, December 28, 2018 2017 Furniture, fixtures and equipment $ 174,663 $ 126,821 Leasehold improvements 216,461 141,174 Computer software and hardware 83,628 52,687 Land 5,297 4,976 Fixed assets, at cost 480,049 325,658 Less: accumulated depreciation and amortization 151,683 104,706 Fixed assets, net $ 328,366 $ 220,952 Depreciation and amortization on fixed assets for the years ended December 27, 2018, December 28, 2017, and December 29, 2016, were $50,478 thousand, $36,255 thousand, and $27,459 thousand, respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 27, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 5. Intangible Assets The following summarizes the balances of identifiable intangible assets as of December 27, 2018 and December 28, 2017 (in thousands): December 27, 2018 December 28, 2017 Gross Gross Estimated Carrying Accumulated Carrying Accumulated Useful Lives Amount Amortization Amount Amortization Amortizable intangible asset: Vendor relationships 10 years $ 319 $ (258) $ 319 $ (226) Indefinite-lived intangible asset: Trade names 109,269 — 109,269 — $ 109,588 $ (258) $ 109,588 $ (226) Amortization expense related to amortizable intangible assets for the years ended December 27, 2018, December 28, 2017 and December 29, 2016, was $32 thousand, $32 thousand and $32 thousand, respectively. Estimated intangible asset amortization for the next five years is as follows (in thousands): 2019 $ 32 2020 29 2021 — 2022 — 2023 — |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 27, 2018 | |
Income Taxes | |
Income Taxes | 6. Income Taxes The components of the provision for income taxes are as follows (in thousands) : Year Ended Year Ended Year Ended December 27, December 28, December 29, 2018 2017 2016 Current expense / (benefit): Federal $ 5,496 $ (4,097) $ 14,588 State 1,669 479 2,422 Total current expense / benefit 7,165 (3,618) 17,010 Deferred expense / (benefit): Federal 922 (250) (4,765) State (1,890) (368) (771) Total deferred (benefit) / expense (968) (618) (5,536) Provision for income taxes $ 6,197 $ (4,236) $ 11,474 The following is a summary of the differences between the total provision for income taxes as shown on the financial statements and the provision for income taxes that would result from applying the federal statutory tax rate of 21% for the year ended December 27, 2018 (35% for years ended December 28, 2017 and December 29, 2016) to income before income taxes (in thousands) . Year Ended Year Ended Year Ended December 27, December 28, December 29, 2018 2017 2016 Computed “expected” provision at statutory rate $ 25,700 $ 34,499 $ 19,080 State income taxes, net of federal income tax benefit (627) (28) 1,073 Permanent differences: Excess tax benefit related to options exercised (17,478) (20,762) — Non-qualified option holder dividend equivalent — — (7,877) Other 457 691 (4) Total permanent differences (17,021) (20,071) (7,881) Change in U.S. tax rate (573) (17,850) — Provision to return (739) (63) (236) Federal tax credits (685) (577) (413) Other, net 142 (146) (149) Provision for income taxes $ 6,197 $ (4,236) $ 11,474 The permanent differences of $17,478 thousand and $20,762 thousand in fiscal 2018 and fiscal 2017 , respectively, are the federal benefits due to the recognition of excess tax deductions for stock options exercised. In the table above, the 2018 and 2017 state benefits related to the recognition of excess tax benefits of $3.3 million and $1.0 million, respectively, are included in state income taxes, net of federal income tax benefit. The Tax Cuts and Jobs Act (the “Act “), which was enacted on December 22, 2017, reduced the U.S. federal corporate income tax rate from 35% to 21% and created new taxes that may apply on certain foreign sourced earnings. As of December 28, 2017, we had not yet completed our accounting for the enactment-date income tax effects of the Act under ASC 740 for the remeasurement of deferred tax assets and liabilities and tax on global intangible low-tax income. In 2017 and the first nine months of 2018, we recorded provisional amounts for certain enactment-date effects of the Act by applying the guidance in Staff Accounting Bulletin No. 118 (“SAB 118”). As of December 28, 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%, and recorded a provisional amount of $17.9 million. Upon further analysis of certain aspects of the Act and refinement of our calculations prior to the end of the measurement period and during the twelve months ended December 27, 2018, we completed our accounting for all the enactment-date income tax effects of the Act and adjusted our provisional amount by an additional $600 thousand, which was included as a component of income tax expense from continuous operations. The changes to 2017 enactment-date provisional amounts decreased the effective tax rate for the year ended December 27, 2018 by 0.47%. 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. We have elected to recognize the resulting tax on GILTI as a period expense in the period the tax is incurred. However, we did not incur tax for the period ended December 27, 2018. The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and (liabilities) are presented below (in thousands): Year Ended Year Ended December 27, December 28, 2018 2017 Deferred tax assets: Accruals not currently deductible for tax purposes $ 13,338 $ 8,993 Tenant improvement allowances 9,239 6,597 Inventories 3,948 4,111 Stock based compensation 3,684 3,108 Other intangibles 361 405 Gift card liability 242 648 Litigation accrual 172 583 Other 2,858 846 Total deferred tax assets 33,842 25,291 Deferred tax liabilities: Intangible assets (27,023) (26,868) Fixed assets (30,681) (24,225) Other (2,976) (1,416) Total deferred tax liabilities (60,680) (52,509) Net deferred tax liabilities $ (26,838) $ (27,218) The Company generated $776 thousand of state net operating losses in fiscal 2018, resulting in a total of $2.2 million state net operating losses available to reduce future income taxes. The state net operating losses expire in various amounts beginning in 2032. In assessing the realization of deferred tax assets, including net operating losses, management considered whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers taxable income in prior carryback periods, future reversals of existing taxable temporary differences, tax planning strategies, and future taxable income exclusive of reversing temporary differences and carryforwards in making this assessment, and accordingly, has concluded that no valuation allowance is necessary as of December 27, 2018 or December 28, 2017 The Company files income tax returns with the U.S. Federal government and various state jurisdictions. Prior tax years beginning in year 2015 remain open to examination by the Internal Revenue Service. As of December 27, 2018, December 28, 2017, and December 29, 2016 the Company had unrecognized tax benefits of $0, $0, and $0, respectively. These unrecognized tax benefits as of December 27, 2018, December 28, 2017, and December 29, 2016 would have no impact on the effective tax rate, if recognized. The Company's policy is to classify interest and penalties related to unrecognized tax benefits in income tax expense . |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 27, 2018 | |
Fair Value Measurements | |
Fair Value Measurements | 7. Fair Value Measurements The Company estimates 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 December 27, (in thousands) 2018 Level 1 Level 2 Level 3 Designated as hedges: Interest rate cap (cash flow hedge) $ 1,076 $ — $ 1,076 $ — Not designated as hedges: Interest rate cap $ 1,075 $ — $ 1,075 $ — 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 | 12 Months Ended |
Dec. 27, 2018 | |
Derivatives and Risk Management | |
Derivatives and Risk Management | 8. 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. Derivative Position as of December 27, 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 $ 1,076 $ 177 Not designated as hedges: Interest rate cap $ 102,500 U.S. dollars December 2021 $ 1,075 $ 9 Derivative 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 Gain (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) Year Ended Year Ended December 27, December 28, December 29, December 27, December 28, December 29, (in thousands) 2018 2017 2016 2018 2017 2016 Interest rate cap (cash flow hedge) $ — $ — $ — $ 391 $ (381) $ 176 Interest rate swaps (cash flow hedges) $ — $ — $ — $ — $ — $ 100 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. 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 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. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 27, 2018 | |
Commitments and Contingencies. | |
Commitments and Contingencies | 9. Commitments and Contingencies Lease Commitments The Company leases its corporate office, retail locations and distribution centers under long‑term operating lease agreements that expire in various years through 2032. Additionally, certain equipment is leased under short‑term operating leases. Certain lease agreements include escalating rents over the lease terms. The Company expenses rent on a straight‑line basis over the life of the lease, which commences on the date the Company has 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 Consolidated Balance Sheets. Future minimum lease payments under non‑cancelable operating leases (with initial or remaining lease terms in excess of one year) as of December 27, 2018, are: (in thousands) Amount 2019 $ 114,076 2020 131,394 2021 123,249 2022 116,925 2023 112,430 Thereafter 710,643 Total minimum lease payments $ 1,308,717 Lease expense for the years ended December 27, 2018, December 28, 2017, and December 29, 2016, was approximately $94,103 thousand, $71,524 thousand, and $53,899 thousand, respectively. Litigation The Company is subject to other various legal actions, claims and proceedings arising in the ordinary course of business, including claims related to breach of contracts, products liabilities, intellectual property matters and employment related matters resulting from its business activities. 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 proceedings are not expected to have a material impact on the Company’s Consolidated Financial Statements. |
Debt
Debt | 12 Months Ended |
Dec. 27, 2018 | |
Debt | |
Debt | 10. Debt The following table summarizes our long‑term debt as of December 27, 2018 and December 28, 2017 (dollars in thousands): Interest Rate Per Annum at Maturity December 27, December 27, December 28, Date 2018 2018 2017 Credit Facilities: UBS Facility Term Loan B September 30, 2023 4.48 % Variable $ 149,000 $ 152,500 Wells Facility Revolving Line of Credit September 30, 2021 3.72 % Variable — 41,000 Total secured debt 149,000 193,500 Less: current maturities 3,500 3,500 Long-term debt maturities 145,500 190,000 Less: unamortized discount and debt issuance costs 3,666 4,438 Total long-term debt $ 141,834 $ 185,562 Repayment of Debt with Proceeds from Initial Public Offering On May 2, 2017, the Company completed its IPO, pursuant to which it sold an aggregate of 10,147,025 shares of Class A common stock, par value $0.001 per share (after giving effect to the underwriters’ exercise in full of their option to purchase additional shares) at a price of $21.00 per share. The Company received aggregate net proceeds of approximately $192.0 million after deducting underwriting discounts and commissions and other offering expenses. The Company used net proceeds from the IPO of approximately $192.0 million to repay a portion of the amounts outstanding under the Term Loan Facility, including accrued and unpaid interest. The partial paydown resulted in a loss on extinguishment of debt in the amount of approximately $5.4 million related to unamortized original issue discount and unamortized deferred debt issuance costs. Dividend On September 30, 2016, the board of directors declared the Special Dividend and authorized the Option Payments. Payment of the Special Dividend and the Option Payments was made on September 30, 2016 to all stockholders and option holders of record at the close of business on September 30, 2016. In connection with the dividend, the Company refinanced its existing indebtedness by amending the prior asset-based revolving credit facility with an amended and restated $200.0 million asset-based revolving credit facility maturing on September 30, 2021 (the “ABL Facility”), entering into a $350.0 million senior secured term loan facility maturing on September 30, 2023 (the “Term Loan Facility” and together with the ABL Facility, our “Credit Facilities”) and repaying and terminating the prior term loan facility and the prior senior secured term loan facility with GCI Capital Markets LLC (the “GCI Facility”). As a result of the refinancing, the Company recorded $162 thousand of loss on extinguishment of debt related to unamortized deferred debt issuance cost for the Company’s prior asset-based revolving credit facility, as well as recorded $1,319 thousand of loss on extinguishment of debt related to unamortized original issue discount and unamortized deferred debt issuance cost for the prior term loan facility and GCI Facility. In addition, the Company recorded $10,347 thousand of original issue discount and deferred debt issuance cost related to new third‑party fees associated with the refinancing. Term Loan Facility As of December 27, 2018, the Term Loan Facility had an outstanding balance of $149.0 million and requires quarterly repayments of $875 thousand, which commenced on December 31, 2016, with the remainder due and payable at maturity. The Term Loan Facility matures on September 30, 2023. As of December 27, 2018, the Term Loan Facility bore interest based on one of the following rates, at the Company’s option: i) ii) (a) (b) (c) ABL Facility As of December 27, 2018, the ABL Facility had a maximum availability of $300 million with actual available borrowings limited to the sum, at the time of calculation, of eligible credit card receivables, plus the cost of eligible inventory, net of inventory reserves, multiplied by the product of an appraisal percentage multiplied by the appraised value of eligible inventory, plus 85% of eligible net trade receivables, plus all eligible cash on hand minus certain Availability Reserves (as defined in the credit agreement governing the ABL Facility). The ABL Facility is available for issuance of letters of credit and contains $30.0 million for standby letters of credit and commercial letters of credit. Available borrowings under the facility are reduced by the face amount of outstanding letters of credit. The ABL Facility matures on September 30, 2021. As of December 27, 2018, the borrowings bear interest at a floating rate, which is based on one of the following rates at the option of the Company: i) ii) (a) (b) (c) As of December 27, 2018, the Company had net availability under the ABL Facility of $289,141 thousand, including outstanding letters of credit of $10,859 thousand. The following table summarizes scheduled maturities of our debt, including current maturities, as of December 27, 2018 (in thousands): Amount 2019 $ 3,500 2020 4,375 2021 2,625 2022 3,500 2023 135,000 Thereafter — Total minimum debt payments $ 149,000 Covenants The credit agreements governing our Credit Facilities contain customary restrictive covenants that, among other things and with certain exceptions, limit the ability of the Company to (i) incur additional indebtedness and liens in connection therewith; (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 us to certain reporting obligations and require that we satisfy certain financial covenants, including, among other things: • The Term Loan Facility has no financial maintenance covenants. As of December 27, 2018, we were in compliance with the covenants of the Credit Facilities. Deferred Debt Issuance Cost and Original Issue Discount Deferred debt issuance cost related to our ABL Facility and our prior asset-based revolving credit facility of $902 thousand and $1, 005 thousand as of December 27, 2018 and December 28, 2017, respectively, are included in Other assets on our Consolidated Balance Sheets. Deferred debt issuance cost and original issue discount related to our Term Loan Facility of $3,666 thousand as of December 27, 2018 and $4, 438 thousand as of December 28, 2017 are included in Term loans on our Consolidated Balance Sheets. Amortization expense was $1,045 thousand, $ 1,205 thousand, and $ 954 thousand for the years ended December 27, 2018, December 28, 2017, and December 29, 2016. 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 was based primarily on discounted cash flows utilizing estimated interest rates, maturities, credit risk, and underlying collateral and is classified primarily as Level 3 within the fair value hierarchy. At December 27, 2018 and December 28, 2017, the fair values of the Company’s debt are as follows (in thousands): December 27, December 28, (in thousands) 2018 2017 Total debt at par value $ 149,000 $ 193,500 Less: unamortized discount and debt issuance costs 3,666 4,438 Net carrying amount $ 145,334 $ 189,062 Fair value $ 147,883 $ 193,881 |
Stockholder's Equity
Stockholder's Equity | 12 Months Ended |
Dec. 27, 2018 | |
Stockholders' Equity | |
Stockholders' Equity | 11. Stockholders’ Equity Common Stock The Company has three classes of common stock: Class A, Class B and Class C. The holders of Class A common stock, Class B common stock and Class C common stock are entitled to share equally, on a per share basis, in dividends or other distributions. Class A common stockholders are entitled to one vote per share held. Class B and Class C common stockholders have no voting rights, except as otherwise provided by law. In the event of the voluntary liquidation or dissolution of the Company, each class of stock will share equally, on a per share basis, in all the assets of the Company that are available for distribution to stockholders. Conversion Features On May 2, 2017, all of the Class B common stock outstanding shares, upon completion of our initial public offering, were converted to Class A common stock. Shares of Class C common stock may be converted, upon the election of holders of such shares of Class C common stock, into the same number of shares of Class A common stock under certain circumstances as provided in the Company’s certificate of incorporation. On July 26, 2017, all of the Class C common stock outstanding shares, upon the election of holders of such shares of Class C common stock, were converted to Class A common stock. Stock Incentive Plans On January 13, 2011, the Company adopted the 2011 Stock Option Plan (as amended, restated, supplemented or otherwise modified from time to time, the “2011 Plan”) to provide for the grant of stock options to employees (including officers), consultants and non‑employee directors of the Company and its subsidiaries. Pursuant to the terms of the 2011 Plan, the Company was authorized to grant options for the purchase of up to 12,520,407 shares as of December 29, 2016 and 10,780,970 shares as of December 31, 2015. As of December 29, 2016 and December 31, 2015, there were 179,575 and 104,269 shares available for grant pursuant to awards under the 2011 Plan, respectively. We ceased granting awards under the 2011 Plan upon the implementation of the 2017 Plan, described below. On April 13, 2017, the board of directors approved the Floor & Decor Holdings, Inc. 2017 Stock Incentive Plan (the “2017 Plan”), which was subsequently approved by the Company’s stockholders. The 2017 Plan authorizes the Company to grant options and restricted stock awards to eligible employees (including officers) , consultants and non-employee directors up to an aggregate of 5,000,000 shares of Class A common stock. In connection with the IPO, the Company granted options to purchase an aggregate of 1,254,465 shares of our Class A common stock to certain of our eligible employees and 15,475 shares of restricted stock to certain of our non-employee directors, in each case pursuant to the 2017 Plan and based on the public offering price of $21.00 per share. As of December 27, 2018 and December 28, 2017, there were 2,850,768 and 3,690,255 shares available for grant pursuant to awards under the 2017 Plan, respectively. Secondary Offerings On July 25, 2017 , certain of the Company’s stockholders completed a secondary public offering (the “July Secondary Offering”) of an aggregate of 10,718,550 shares of common stock at a price to the public of $40.00 per share. The Company did not sell any shares in the July Secondary Offering and did not receive any proceeds from the sales of shares by the selling stockholders. On November 20, 2017, certain of the Company’s stockholders completed a secondary public offering (the “November Secondary Offering”) of an aggregate of 7,475,000 shares of common stock at a price to the public of $36.00 per share. The Company did not sell any shares in the November Secondary Offering and did not receive any proceeds from the sales of shares by the selling stockholders. On May 29, 2018, certain of the Company’s stockholders completed a secondary public offering (the “May Secondary Offering”) of an aggregate of 10,000,000 shares of common stock at a price to the public of $45.80 per share. The Company did not sell any shares in the May Secondary Offering and did not receive any proceeds from the sales of shares by the selling stockholders. On September 14, 2018, certain of the Company’s stockholders completed a secondary public offering (the “September Secondary Offering”) of an aggregate of 11,500,000 shares of common stock at a price to the public of $37.25 per share. The Company did not sell any shares in the September Secondary Offering and did not receive any proceeds from the sales of shares by the selling stockholders. Stock Options The Company accounts for stock‑based compensation pursuant to ASC 718, Compensation – Stock Compensation , which requires measurement of compensation cost for all stock awards at fair value on the date of grant and recognition of compensation, net of forfeitures, over the requisite service period for awards expected to vest. Stock options are granted with an exercise price greater than or equal to the fair market value on the date of grant, as authorized by the Company’s board of directors or compensation committee. Options granted have vesting provisions ranging from one to five years, and contractual terms of ten years. Stock option grants are generally subject to forfeiture if employment terminates prior to vesting. The fair value of stock option awards granted was estimated using the Black‑Scholes pricing model with the following weighted‑average assumptions: Year Ended Year Ended Year Ended December 27, December 28, December 29, 2018 2017 2016 Risk-free interest rate 3.05 % 2.06 % 1.43 % Expected volatility 42 % 39 % 40 % Expected life (in years) 6.29 6.50 6.50 Dividend yield — % — % — % The Company estimates the volatility of the share price of its common stock by considering the historical volatility of the stock of similar public entities. In determining the appropriateness of the public entities included in the volatility assumption the Company considered a number of factors, including the entity’s life cycle stage, growth profile, size, financial leverage and products offered. The table below summarizes the changes in all stock options for the following periods: Weighted Weighted Average Fair Weighted Options Average Value/Share of Average Exercisable Exercise Price Options Exercise at End of Exercisable Granted During Options Price of Year Options the Year Outstanding at December 31, 2015 10,460,119 $ $ $ — Granted 2,025,535 — — Exercised (145,140) — — — Forfeited or expired (361,403) — — — Outstanding at December 29, 2016 11,979,111 — Granted 1,339,668 — — 9.20 Exercised (1,828,339) — — — Forfeited or expired (236,354) — — — Outstanding at December 28, 2017 11,254,086 7,448,532 — Granted 926,775 — — 15.63 Exercised (2,069,195) — — — Forfeited or expired (258,838) — — — Outstanding at December 27, 2018 9,852,828 $ 6,409,257 $ $ — The intrinsic value for stock options is defined as the difference between the exercise price and the value of the Company’s common stock (on a minority, non‑marketable basis). The per share value of the Company’s common stock as of December 27, 2018, was $26.01. The intrinsic value of stock options exercised was $ 87,151 thousand and $ 62,508 thousand for the years ended December 27, 2018 and December 28, 2017, respectively. The aggregate intrinsic value of stock options outstanding as of December 27, 2018, was $165,404 thousand with a weighted‑average remaining contractual life of 5. 3 years. The aggregate intrinsic value of stock options exercisable as of December 27, 2018, was $133,485 thousand with a weighted‑average remaining contractual life of 3.8 years. The Company’s total unrecognized compensation cost related to stock options as of December 27, 2018, was $26,135 thousand, which is expected to be recognized over a weighted average period of 3.5 years. Restricted Stock During fiscal 2018, we granted 10,165 shares of restricted stock to certain of our non-employee directors. Restricted stock granted have vesting provisions ranging from two to four years, and the aggregate fair value of restricted stock outstanding as of December 27, 2018, was $566 thousand. As of December 27, 2018, there were 21,775 shares of restricted stock outstanding. The Company’s total unrecognized compensation cost related to restricted stock as of December 27, 2018, was $489 thousand, which is expected to be recognized over a weighted average period of 2.0 years. During fiscal 2017, we granted 15,475 shares of restricted stock to certain of our non-employee directors. Restricted stock granted had vesting provisions of four years, and the aggregate fair value of restricted stock outstanding as of December 28, 2017, was $767 thousand. As of December 28, 2017, there were 15,475 shares of restricted stock outstanding. The Company’s total unrecognized compensation cost related to restricted stock as of December 28, 2017, was $270 thousand, which is expected to be recognized over a weighted average period of 3.3 years. Employee Stock Purchase Plan At our 2018 annual meeting of stockholders held on May 17, 2018, our stockholders approved the Floor & Decor Holdings, Inc. Employee Stock Purchase Plan (the “ESPP”), which became available to substantially all of our employees beginning in the third quarter of fiscal 2018. The ESPP is a tax-qualified plan under Section 423 of the Internal Revenue Code, and it 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 our Class A common stock, par value $0.001 per share, approved for issuance under the ESPP. As of December 27, 2018, eligible employees contributed $1.4 million to purchase shares, and during fiscal 2018, the Company recognized $333 thousand of stock-based compensation expense related to the ESPP. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 27, 2018 | |
Earnings Per Share | |
Earnings Per Share | 12. 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: Year Ended Year Ended Year Ended December 27, December 28, December 29, (in thousands, except per share data) 2018 2017 2016 Net income $ 116,187 $ 102,788 $ 43,039 Basic weighted average shares outstanding 96,770 90,951 83,432 Dilutive effect of share based awards 7,791 8,709 4,999 Diluted weighted average shares outstanding 104,561 99,660 88,431 Basic earnings per share $ 1.20 $ 1.13 $ 0.52 Diluted earnings per share $ 1.11 $ 1.03 $ 0.49 The following have been excluded from the computation of dilutive effect of share based awards because the effect would be anti‑dilutive: Year Ended Year Ended Year Ended December 27, December 28, December 29, (in thousands) 2018 2017 2016 Stock options 298 849 2,004 |
Selected Quarterly Financial In
Selected Quarterly Financial Information (unaudited) | 12 Months Ended |
Dec. 27, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Information (unaudited) | 13. Selected Quarterly Financial Information (unaudited) The following tables present the Company’s unaudited quarterly results for fiscal 2018 and fiscal 2017. Fiscal 2018 (in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 402,948 $ 434,279 $ 435,882 $ 436,739 Gross profit 165,386 177,638 178,226 181,018 Income from continuing operations 36,506 37,245 34,237 23,313 Basic earnings from continuing operations per share 0.38 0.39 0.35 0.24 Diluted earnings from continuing operations per share 0.35 0.35 0.33 0.22 Net income 31,871 39,846 26,568 17,902 Basic earnings per share 0.33 0.41 0.27 0.18 Diluted earnings per share 0.30 0.38 0.25 0.17 Fiscal 2017 (in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 307,296 $ 344,047 $ 343,923 $ 389,501 Gross profit 125,471 142,228 142,491 162,374 Income from continuing operations 22,672 34,102 28,596 32,401 Basic earnings from continuing operations per share 0.27 0.38 0.30 0.34 Diluted earnings from continuing operations per share 0.26 0.34 0.28 0.31 Net income 11,128 20,429 23,255 47,976 Basic earnings per share 0.13 0.22 0.25 0.51 Diluted earnings per share 0.13 0.20 0.22 0.46 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 27, 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”), December 28, 2017 (“fiscal 2017”), and December 29, 2016 (“fiscal 2016”) 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 consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. Unless indicated otherwise, the information in this Annual 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash consists of currency and demand deposits with banks. |
Receivables | Receivables Receivables consist primarily of amounts due from credit card companies, receivables from vendors and tenant improvement allowances owed by landlords. The Company typically collects its credit card receivables within three to five business days of the underlying sale to the customer. The Company has agreements with a majority of its large merchandise vendors that allow for specified rebates based on purchasing volume. Generally, these agreements are on an annual basis, and the Company collects the rebates subsequent to its fiscal year end. Additionally, the Company has agreements with substantially all vendors that allow for the return of certain merchandise throughout the normal course of business. When inventory is identified to return to a vendor, it is removed from inventory and recorded as a receivable on the Consolidated Balance Sheet, and any variance between capitalized inventory cost associated with the return and the expected vendor reimbursement is expensed in Cost of sales in the Consolidated Statement of Income when the inventory is identified to be returned to the vendor. The Company reserves for estimated uncollected receivables based on historical trends, which historically have been immaterial. The allowance for doubtful accounts as of December 27, 2018 and December 28, 2017, was $184 thousand and $349 thousand, respectively. |
Credit Program | Credit Program Credit is offered to the Company's customers through a proprietary credit card underwritten by third-party financial institutions and at no recourse to the Company. Beginning in fiscal 2018, the Company began offering limited credit to its commercial clients. The total exposure at the end of fiscal 2018 was $251 thousand. |
Inventory Valuation and Shrinkage | Inventory Valuation and Shrinkage Inventories consist of merchandise held for sale and are stated at the lower of cost and net realizable value. When evidence exists that the net realizable value of inventory is lower than its cost, the difference is recorded in Cost of sales in the Consolidated Statement of Income as a loss in the period in which it occurs. The Company determines inventory costs using the weighted average cost method. The Company capitalizes transportation, duties and other costs to get product to its retail locations. The Company records reserves for estimated losses related to shrinkage and other amounts that are otherwise not expected to be fully recoverable. These reserves are calculated based on historical shrinkage, selling price, margin and current business trends. The estimates have calculations that require management to make assumptions based on the current rate of sales, age, salability and profitability of inventory, historical percentages that can be affected by changes in the Company's merchandising mix, customer preferences and changes in actual shrinkage trends. These reserves totaled $4,265 thousand and $2,936 thousand as of December 27, 2018 and December 28, 2017, respectively. Physical inventory counts and cycle counts are performed on a regular basis in each store and distribution center to ensure that amounts reflected in the accompanying Consolidated Balance Sheets are properly stated. During the period between physical inventory counts in our stores, the Company accrues for estimated losses related to shrinkage on a store-by-store basis. Shrinkage is the difference between the recorded amount of inventory and the physical inventory. Shrinkage may occur due to theft or loss, among other things. |
Fixed Assets | Fixed Assets Fixed assets consist primarily of furniture, fixtures and equipment, leasehold improvements (including those that are reimbursed by landlords as tenant improvement allowances), computer software and hardware and land. Fixed assets are stated at cost less accumulated depreciation utilizing the straight-line method over the assets’ estimated useful lives. Leasehold improvements are amortized using the straight-line method over the shorter of (i) the original term of the lease, (ii) renewal term of the lease if the renewal is reasonably expected or (iii) the useful life of the improvement. The Company’s fixed assets are depreciated using the following estimated useful lives: Useful Life Furniture, fixtures and equipment 2 - 7 years Leasehold improvements 10 - 25 years Computer software and hardware 3 - 7 years Land Indefinite The cost and related accumulated depreciation of assets sold or otherwise disposed are removed from the accounts, and the related gain or loss is reported in the Consolidated Statements of Income. . |
Capitalized Software Costs | Capitalized Software Costs The Company capitalizes certain costs related to the acquisition and development of software and amortizes these costs using the straight-line method over the estimated useful life of the software. Certain development costs not meeting the criteria for capitalization are expensed as incurred. |
Goodwill and Other Indefinite-Lived Intangible Assets | Goodwill and Other Indefinite‑Lived Intangible Assets Goodwill represents the excess of purchase price over the fair value of net assets acquired. The Company does not amortize goodwill and other intangible assets with indefinite lives resulting from business combinations but, in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350, Intangibles—Goodwill and Other , does assess the recoverability of goodwill annually in the fourth quarter of each fiscal year, or more often if indicators warrant, by determining whether the fair value of the reporting unit exceeds its carrying value. In accordance with ASC 350, identifiable intangible assets with finite lives are amortized over their estimated useful lives. Each year the Company may assess qualitative factors to determine whether it is more likely than not that the fair value of the single reporting unit is less than its carrying amount as a basis for determining whether it is necessary to complete quantitative impairment assessments. The Company completed a qualitative assessment in fiscal 2018. Based on such goodwill impairment analysis performed qualitatively as of October 26, 2018, the Company determined that the fair value of its reporting unit is in excess of the carrying value. No events or changes in circumstances have occurred since the date of the Company's most recent annual impairment test that would more likely than not reduce the fair value of the reporting unit below its carrying amount. The Company annually (or more frequently if there are indicators of impairment) evaluates whether its indefinite-lived asset continues to have an indefinite life or have impaired carrying values due to changes in the asset or its related risks. The impairment review is performed by comparing the carrying value of the indefinite-lived intangible asset to its estimated fair value. If the recorded carrying value of the indefinite-lived asset exceeds its estimated fair value, an impairment charge is recorded to write the asset down to its estimated fair value. The estimated lives of the Company’s intangible assets are as follows: Useful Life Trade names Indefinite Vendor relationships 10 years The Company’s goodwill and other indefinite‑lived intangible assets impairment loss calculations contain uncertainties because they require management to make significant judgments in estimating the fair value of the Company’s reporting unit and indefinite‑lived intangible asset, including the projection of future cash flows, assumptions about which market participants are the most comparable, the selection of discount rates and the weighting of the income and market approaches. These calculations contain uncertainties because they require management to make assumptions such as estimating economic factors and the profitability of future business operations and, if necessary, the fair value of the reporting unit’s assets and liabilities among others. Further, the Company’s ability to realize the future cash flows used in its fair value calculations is affected by factors such as changes in economic conditions, changes in the Company’s operating performance and changes in the Company’s business strategies. Significant changes in any of the assumptions involved in calculating these estimates could affect the estimated fair value of the Company’s reporting unit and indefinite‑lived intangible assets and could result in impairment charges in a future period. |
Long-Lived Assets | Long‑Lived Assets Long-lived assets, such as fixed assets and intangible assets with finite lives, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of an asset, a product recall or an adverse action by a regulator. If the sum of the estimated undiscounted future cash flows related to the asset is less than the asset’s carrying value, the Company recognizes a loss equal to the difference between the carrying value and the fair value, usually determined by the estimated discounted cash flow analysis of the asset. Since there is typically no active market for the Company’s definite-lived intangible asset, the Company estimates fair value based on expected future cash flows at the time they are identified. The Company estimates future cash flows based on store-level historical results, current trends and operating and cash flow projections. The Company amortizes the asset with a finite life over its estimated useful life on a straight-line basis. This amortization methodology best matches the pattern of economic benefit that is expected from the definite-lived intangible asset. The Company evaluates the useful life of its intangible asset on an annual basis. |
Tenant Improvement Allowances and Deferred Rent | Tenant Improvement Allowances and Deferred Rent The Company accounts for tenant improvement allowances and deferred rent as liabilities or assets on the balance sheet. Tenant improvement allowances are amounts received from a lessor for improvements to leased properties and are amortized against rent expense over the life of the respective leases. Fixed rents are recognized ratably over the initial non-cancellable lease term. Deferred rent represents differences between the actual cash paid for rent and the amount of straight-line rent over the initial non-cancellable term. |
Self-Insurance Reserves | Self‑Insurance Reserves The Company is partially self-insured for workers’ compensation and general liability claims less than certain dollar amounts and maintains insurance coverage with individual and aggregate limits. The Company also has a basket aggregate limit to protect against losses exceeding $8.6 million (subject to adjustment and certain exclusions) for workers' compensation claims and general liability claims. The Company’s liabilities represent estimates of the ultimate cost for claims incurred, including loss adjusting expenses, as of the balance sheet date. The estimated liabilities are not discounted and are established based upon analysis of historical data, actuarial estimates, regulatory requirements, an estimate of claims incurred but not yet reported and other relevant factors. Management utilizes independent third-party actuarial studies to help assess the liability on a regular basis. |
Commitments and Contingencies | Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. |
Asset Retirement Obligations | Asset Retirement Obligations An asset retirement obligation (“ARO”) represents a legal obligation associated with the retirement of a tangible long-lived asset that is incurred upon the acquisition, construction, development or normal operation of that long-lived asset. The Company’s AROs are primarily associated with leasehold improvements that, at the end of a lease, the Company is contractually obligated to remove in order to comply with certain lease agreements. The ARO is recorded in Other long-term liabilities on the Consolidated Balance Sheets and will be subsequently adjusted for changes in fair value. The associated estimated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset and depreciated over its useful life. Changes in (i) inflation rates and (ii) the estimated costs, timing and extent of future store closure activities each result in (a) a current adjustment to the recorded liability and related asset and (b) a change in the liability and asset amounts to be recorded prospectively. Any changes related to the assets are then recognized in accordance with our depreciation policy, which would generally result in depreciation expense being recognized prospectively over the shorter of the remaining lease term or estimated useful life. |
Fair Value Measurements - Debt | Fair Value Measurements—Debt The Company estimates fair values in accordance with ASC 820, Fair Value Measurement . ASC 820 provides a framework for measuring fair value and requires disclosures 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 The fair values of certain of the Company’s debt instruments have been determined by the Company utilizing Level 3 inputs, such as available market information and appropriate valuation methodologies, including the rates for similar instruments and the discounted cash flows methodology. |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses derivative financial instruments to maintain a portion of its long-term debt obligations at a targeted balance of fixed and variable interest rate debt to manage its risk associated with fluctuations in interest rates. We recognize derivative contracts at fair value on our Consolidated Balance Sheets. The fair value is calculated utilizing Level 2 inputs. Unrealized changes in the fair value of hedged derivative instruments are recorded in Accumulated other comprehensive (loss) income within the equity section of our Consolidated Balance Sheets. The effective portion of the gain or loss on the derivatives is reported as a component of Comprehensive income within the Consolidated Statements of Comprehensive Income 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 changes in fair values of the instruments are not highly effective, the ineffective portion of the hedge is immediately recognized in earnings. We perform an assessment of the effectiveness of our derivative contracts designated as hedges, including assessing the possibility of counterparty default. If we determine that a derivative is no longer expected to be highly effective, we discontinue hedge accounting prospectively and recognize subsequent changes in the fair value of the hedge in earnings. We believe our derivative contracts, which continue to be designated as cash flow hedges, and which consist of interest rate cap contracts, will continue to be highly effective in offsetting changes in cash flow attributable to floating interest rate risk. See footnote 8. Derivatives and Risk Management for additional information. . |
Use of Estimates | Use of Estimates The preparation of the financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales and expenses during the period. Significant items subject to such estimates and assumptions include the carrying amounts of fixed assets and intangibles, asset retirement obligations, allowances for accounts receivable and inventories, reserves for workers' compensation and general liability claims incurred but not reported and deferred income tax assets and liabilities. Actual results could differ from these estimates. |
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 90 days. The right of return is an element of variable consideration as defined within 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 as defined with Topic 606. For the fiscal year ended December 27, 2018, the return asset is included within Prepaid expenses and other current assets and the refund liability is included within Accrued expenses and other current liabilities, each respectively on the Consolidated Balance Sheets. We adopted the standard using the modified retrospective transition method within Topic 606; therefore, we accounted for the return asset and all provisions of Topic 606 prospectively. The return asset is included in Inventories, net on the December 28, 2017 Consolidated Balance Sheets. The refund liability under Topic 605 and Topic 606 is included within Accrued expenses and other current liabilities. 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 Consolidated Statement of Income. We have an agreement with an unrelated third-party who is the issuer of the Company's gift cards and also assumes the liability for unredeemed gift cards. The Company is 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. Gift card breakage is recognized based upon historical redemption patterns and represents the balance of gift cards for which the Company believes the likelihood of redemption by the customer is remote. Accordingly, in fiscal 2018, fiscal 2017, and fiscal 2016 gift card breakage income of $1,584 thousand, $757 thousand, and $627 thousand was recognized in net sales in the Consolidated Statements of Income, respectively, for such unredeemed gift cards. Sales Returns and Allowances The Company accrues for estimated sales returns based on historical sales return results. The allowance for sales returns at December 27, 2018 and December 28, 2017, was $8,335 thousand and $7,189 thousand, respectively. Merchandise exchanges of similar product and price are not considered merchandise returns and, therefore, are excluded when calculating the sales returns reserve. |
Cost of Sales, Vendor Rebates and Allowances | Cost of Sales Cost of sales consists of merchandise costs as well as freight to transport inventory to our distribution centers and stores, and duty and other costs that are incurred to distribute the merchandise to our stores. Cost of sales also includes shrinkage, damaged product disposals, distribution, warehousing, sourcing and compliance cost and arranging and paying for freight to deliver products to customers. The Company receives cash consideration from certain vendors related to vendor allowances and volume rebates, which is recorded as a reduction of costs of sales when the inventory is sold or as a reduction of the carrying value of inventory if the inventory is still on hand. Vendor Rebates and Allowances Vendor allowances consist primarily of volume rebates that are earned as a result of attaining certain inventory purchase levels and advertising allowances or incentives for the promotion of vendors' products. These vendor allowances are accrued, based on annual projections, as earned. Vendor allowances earned are initially recorded as a reduction to the carrying value of inventory and a subsequent reduction in cost of sales when the related product is sold. Certain incentive allowances that are reimbursements of specific, incremental and identifiable costs incurred to promote vendors’ products are recorded as an offset against these promotional expenses. |
Total Operating Expenses | Total Operating Expenses Total operating expenses consist primarily of store and administrative personnel wages and benefits, infrastructure expenses, supplies, fixed asset depreciation, store and corporate facility expenses, pre-opening costs, training and advertising costs. Credit card fees, insurance, personal property taxes, legal expenses and other miscellaneous operating costs are also included. |
Advertising | Advertising The Company expenses advertising costs as the advertising takes place. Advertising costs incurred during the years ended December 27, 2018, December 28, 2017, and December 29, 2016, were $55,283 thousand, $43,560 thousand, and $33,497 thousand respectively, and are included in Selling and store operating expenses and Pre‑opening expenses in the accompanying Consolidated Statements of Income. |
Pre-Opening Expenses | Pre‑Opening Expenses The Company accounts for non-capital operating expenditures incurred prior to opening a new store as "pre-opening" expenses in its Consolidated Statements of Income. The Company's pre-opening expenses begin on average three to six months in advance of a store opening or relocating due to, among other things, the amount of time it takes to prepare a store for its grand opening. Pre-opening expenses primarily include: advertising, rent, staff training, staff recruiting, utilities, personnel and equipment rental. A store is considered to be relocated if it is closed temporarily and re-opened within the same primary trade area. Pre‑opening expenses for the years ended December 27, 2018, December 28, 2017, and December 29, 2016, totaled $26,145 thousand, $16,485 thousand, and $13,732 thousand, respectively. |
Loss on Early Extinguishment of Debt | Loss on Early Extinguishment of Debt On May 2, 2017, the Company completed its initial public offering (“IPO”), pursuant to which it sold an aggregate of 10,147,025 shares of Class A common stock, par value $0.001 per share. The Company received aggregate net proceeds of approximately $192.0 million after deducting underwriting discounts and commissions and other offering expenses. The Company used net proceeds from the IPO of approximately $192.0 million to repay a portion of the amounts outstanding under the Term Loan Facility, including accrued and unpaid interest. The partial paydown resulted in a loss on extinguishment of debt in the amount of approximately $5.4 million related to unamortized original issue discount and unamortized deferred debt issuance costs. |
Stock-Based Compensation | Stock‑Based Compensation The Company accounts for employee stock options, restricted stock, and employee stock purchase plans in accordance with ASC 718, Compensation – Stock Compensation . The Company obtains independent third-party valuation studies to assist it with determining the grant date fair value of our stock price. Stock options are granted with exercise prices equal to or greater than the fair market value on the date of grant as authorized by the board of directors or compensation committee. Options granted have vesting provisions ranging from one to five years. Stock option grants are generally subject to forfeiture if employment terminates prior to vesting. The Company has selected the Black-Scholes option pricing model for estimating the grant date fair value of stock option awards granted. The Company bases the risk-free interest rate on the yield of a zero coupon U.S. Treasury security with a maturity equal to the expected life of the option from the date of the grant. The Company estimates the dividend yield to be zero as the Company does not intend to pay dividends in the future. The Company estimates the volatility of the share price of its common stock by considering the historical volatility of the stock of similar public entities. The Company considers a number of factors in determining the appropriateness of the public entities included in the volatility assumption, including the entity's life cycle stage, growth profile, size, financial leverage and products offered. Stock-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense over the requisite service period based on the number of years for which the requisite service is expected to be rendered. |
Income Taxes | Income Taxes The Company accounts for income taxes under the liability method in accordance with ASC 740, Income Taxes , which requires the recognition of deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts and tax basis of existing assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Changes in tax laws and rates could affect recorded deferred tax assets and liabilities in the future. The effect on deferred tax assets and liabilities of a change in tax laws or rates is recognized in the period that includes the enactment date of such a change. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which the associated temporary differences became deductible. On a quarterly basis, the Company evaluates whether it is more likely than not that its deferred tax assets will be realized in the future and concludes whether a valuation allowance must be established. The Company includes any estimated interest and penalties on tax-related matters in income taxes payable and income tax expense. The Company accounts for uncertain tax positions in accordance with ASC 740. ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements using a two-step process for evaluating tax positions taken, or expected to be taken, on a tax return. The Company may only recognize the tax benefit from an uncertain tax position if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. Uncertain tax positions require determinations and estimated liabilities to be made based on provisions of the tax law, which may be subject to change or varying interpretation. The Company does not believe it has any material risks related to uncertain tax positions. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2017, the FASB issued ASU No. 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” This standard simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. ASU No. 2017-04 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted after January 1, 2017. The Company elected to early adopt this standard during the fourth quarter of 2017. The amendments in this update should be applied using a prospective approach. The adoption of ASU No. 2017-04 did not have a material impact on the Company's Consolidated Financial Statements. 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 did not have a material impact on the Company's 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 did not have a material impact on the Company's Consolidated Statements of Cash Flows. In March 2016, the FASB issued ASU No. 2016-09, “Compensation—Stock Compensation (Topic 718): Improvements to Employees Share-Based Payment Accounting.” The update is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. The amendments in this update are effective for fiscal years beginning after December 15, 2016, and interim periods within those years, with early adoption permitted. Depending on the amendment, methods used to apply the requirements of the update include modified retrospective, retrospective, and prospective. The Company elected to early adopt this standard during the second quarter of 2016. The net cumulative effect of this change was recognized as a $148 thousand reduction to retained earnings and the recognition of $238 thousand of additional paid-in capital. The adoption of this standard resulted in a modified retrospective adjustment on the Company’s Consolidated Balance Sheet as of January 1, 2016, the beginning of the annual period that includes the interim period of adoption. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)." ASU No. 2016-02 requires that lessees recognize lease assets and lease liabilities for all leases with greater than 12 month terms on the balance sheet. The guidance also requires disclosures about the amount, timing and uncertainty of cash flows arising from leases. This new guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. We will adopt the ASU in the first quarter of our fiscal year 2019, using the modified retrospective approach. We also plan to elect the package of practical expedients to use in transition, which permits us not to reassess under the new standard our prior conclusions about lease identification and lease classification. We will utilize our lease accounting software to facilitate implementation that will retain the lease classification and initial direct costs for any leases that exist prior to adoption of the standard. We have performed procedures to evaluate the landscape of our real estate, personal property and other arrangements that may meet the definition of a lease. Based on these efforts, we expect that the adoption will result in a significant increase to our long-term assets and liabilities as, at a minimum, substantially all of our current lease commitments will be subject to balance sheet recognition. We do not expect the adoption to have a material impact to our Consolidated Statements of Income or Statements of Cash Flows. In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory.” ASU No. 2015-11 provides new guidance for entities using first-in, first-out or average cost to simplify the subsequent measurement of inventory, which proposes that inventory should be measured at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This guidance eliminates the option to subsequently measure inventory at replacement cost or net realizable value less an approximately normal profit margin. This new guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those years. The amendments in this update should be applied prospectively. The adoption of ASU No. 2015-11 did not have a material impact on the Company’s Consolidated Financial Statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU No. 2014-09 provides 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 in the first quarter of fiscal 2018 using the modified retrospective approach, effective December 29, 2017. The cumulative adjustment upon adoption primarily resulted in a reduction of deferred revenue and related inventories and an increase to retained earnings of $7.8 million, net of tax. The adoption of ASU No. 2014-09 did not have a material impact to the Company’s Consolidated Financial Statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 27, 2018 | |
Summary of Significant Accounting Policies | |
Schedule of Fixed Assets Estimated Useful Lives | Useful Life Furniture, fixtures and equipment 2 - 7 years Leasehold improvements 10 - 25 years Computer software and hardware 3 - 7 years Land Indefinite |
Schedule of Intangible Assets Estimated Lives | Useful Life Trade names Indefinite Vendor relationships 10 years |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 27, 2018 | |
Disaggregation of Revenue [Abstract] | |
Disaggregated Revenue | Fiscal Year Ended December 27, 2018 December 28, 2017 December 29, 2016 % of % of % of Product Category Net Sales Net Sales Net Sales Net Sales Net Sales Net Sales Tile $ 476,337 27 % $ 419,745 30 % $ 325,433 31 % Decorative Accessories 325,139 19 257,684 19 188,371 18 Laminate / Luxury Vinyl Plank 316,109 18 208,238 15 131,447 12 Installation Materials and Tools 272,994 16 217,427 16 165,330 16 Wood 192,087 12 167,152 12 142,751 14 Natural Stone 113,565 7 104,670 8 90,866 9 Delivery and Other 13,617 1 9,851 — 6,561 — Total $ 1,709,848 100 % $ 1,384,767 100 % $ 1,050,759 100 % |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 27, 2018 | |
Accrued Expenses | |
Schedule of accrued expenses | December 27, December 28, 2018 2017 Accrued incentive compensation $ 12,473 $ 17,218 Sales tax payable 12,046 9,171 Insurance reserve- incurred but not reported 8,229 6,390 Other 49,290 41,768 Accrued Expenses $ 82,038 $ 74,547 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 27, 2018 | |
Fixed Assets | |
Schedule of fixed assets | December 27, December 28, 2018 2017 Furniture, fixtures and equipment $ 174,663 $ 126,821 Leasehold improvements 216,461 141,174 Computer software and hardware 83,628 52,687 Land 5,297 4,976 Fixed assets, at cost 480,049 325,658 Less: accumulated depreciation and amortization 151,683 104,706 Fixed assets, net $ 328,366 $ 220,952 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 27, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of finite-lived and indefinite-lived assets | December 27, 2018 December 28, 2017 Gross Gross Estimated Carrying Accumulated Carrying Accumulated Useful Lives Amount Amortization Amount Amortization Amortizable intangible asset: Vendor relationships 10 years $ 319 $ (258) $ 319 $ (226) Indefinite-lived intangible asset: Trade names 109,269 — 109,269 — $ 109,588 $ (258) $ 109,588 $ (226) |
Schedule of intangible asset future amortization | 2019 $ 32 2020 29 2021 — 2022 — 2023 — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 27, 2018 | |
Income Taxes | |
Schedule of components of the provision for income taxes | Year Ended Year Ended Year Ended December 27, December 28, December 29, 2018 2017 2016 Current expense / (benefit): Federal $ 5,496 $ (4,097) $ 14,588 State 1,669 479 2,422 Total current expense / benefit 7,165 (3,618) 17,010 Deferred expense / (benefit): Federal 922 (250) (4,765) State (1,890) (368) (771) Total deferred (benefit) / expense (968) (618) (5,536) Provision for income taxes $ 6,197 $ (4,236) $ 11,474 |
Schedule of effective income tax reconciliation | Year Ended Year Ended Year Ended December 27, December 28, December 29, 2018 2017 2016 Computed “expected” provision at statutory rate $ 25,700 $ 34,499 $ 19,080 State income taxes, net of federal income tax benefit (627) (28) 1,073 Permanent differences: Excess tax benefit related to options exercised (17,478) (20,762) — Non-qualified option holder dividend equivalent — — (7,877) Other 457 691 (4) Total permanent differences (17,021) (20,071) (7,881) Change in U.S. tax rate (573) (17,850) — Provision to return (739) (63) (236) Federal tax credits (685) (577) (413) Other, net 142 (146) (149) Provision for income taxes $ 6,197 $ (4,236) $ 11,474 |
Schedule of deferred tax assets and liabilities | Year Ended Year Ended December 27, December 28, 2018 2017 Deferred tax assets: Accruals not currently deductible for tax purposes $ 13,338 $ 8,993 Tenant improvement allowances 9,239 6,597 Inventories 3,948 4,111 Stock based compensation 3,684 3,108 Other intangibles 361 405 Gift card liability 242 648 Litigation accrual 172 583 Other 2,858 846 Total deferred tax assets 33,842 25,291 Deferred tax liabilities: Intangible assets (27,023) (26,868) Fixed assets (30,681) (24,225) Other (2,976) (1,416) Total deferred tax liabilities (60,680) (52,509) Net deferred tax liabilities $ (26,838) $ (27,218) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 27, 2018 | |
Fair Value Measurements | |
Schedule of Assets (Liabilities) Measured at Fair Value on a Recurring Basis | As of December 27, (in thousands) 2018 Level 1 Level 2 Level 3 Designated as hedges: Interest rate cap (cash flow hedge) $ 1,076 $ — $ 1,076 $ — Not designated as hedges: Interest rate cap $ 1,075 $ — $ 1,075 $ — 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 Manageme_2
Derivatives and Risk Management (Tables) | 12 Months Ended |
Dec. 27, 2018 | |
Derivatives and Risk Management | |
Schedule of derivative position | Derivative Position as of December 27, 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 $ 1,076 $ 177 Not designated as hedges: Interest rate cap $ 102,500 U.S. dollars December 2021 $ 1,075 $ 9 Derivative 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) Year Ended Year Ended December 27, December 28, December 29, December 27, December 28, December 29, (in thousands) 2018 2017 2016 2018 2017 2016 Interest rate cap (cash flow hedge) $ — $ — $ — $ 391 $ (381) $ 176 Interest rate swaps (cash flow hedges) $ — $ — $ — $ — $ — $ 100 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 27, 2018 | |
Commitments and Contingencies. | |
Schedule of future minimum lease payment | (in thousands) Amount 2019 $ 114,076 2020 131,394 2021 123,249 2022 116,925 2023 112,430 Thereafter 710,643 Total minimum lease payments $ 1,308,717 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 27, 2018 | |
Debt | |
Schedule of Long Term Debt | Interest Rate Per Annum at Maturity December 27, December 27, December 28, Date 2018 2018 2017 Credit Facilities: UBS Facility Term Loan B September 30, 2023 4.48 % Variable $ 149,000 $ 152,500 Wells Facility Revolving Line of Credit September 30, 2021 3.72 % Variable — 41,000 Total secured debt 149,000 193,500 Less: current maturities 3,500 3,500 Long-term debt maturities 145,500 190,000 Less: unamortized discount and debt issuance costs 3,666 4,438 Total long-term debt $ 141,834 $ 185,562 |
Schedule of Maturities of Debt | Amount 2019 $ 3,500 2020 4,375 2021 2,625 2022 3,500 2023 135,000 Thereafter — Total minimum debt payments $ 149,000 |
Schedule of fair value debt | December 27, December 28, (in thousands) 2018 2017 Total debt at par value $ 149,000 $ 193,500 Less: unamortized discount and debt issuance costs 3,666 4,438 Net carrying amount $ 145,334 $ 189,062 Fair value $ 147,883 $ 193,881 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 27, 2018 | |
Stockholders' Equity | |
Schedule of assumptions used to estimate the fair value of stock option awards granted | Year Ended Year Ended Year Ended December 27, December 28, December 29, 2018 2017 2016 Risk-free interest rate 3.05 % 2.06 % 1.43 % Expected volatility 42 % 39 % 40 % Expected life (in years) 6.29 6.50 6.50 Dividend yield — % — % — % |
Schedule of changes in all stock options | Weighted Weighted Average Fair Weighted Options Average Value/Share of Average Exercisable Exercise Price Options Exercise at End of Exercisable Granted During Options Price of Year Options the Year Outstanding at December 31, 2015 10,460,119 $ $ $ — Granted 2,025,535 — — Exercised (145,140) — — — Forfeited or expired (361,403) — — — Outstanding at December 29, 2016 11,979,111 — Granted 1,339,668 — — 9.20 Exercised (1,828,339) — — — Forfeited or expired (236,354) — — — Outstanding at December 28, 2017 11,254,086 7,448,532 — Granted 926,775 — — 15.63 Exercised (2,069,195) — — — Forfeited or expired (258,838) — — — Outstanding at December 27, 2018 9,852,828 $ 6,409,257 $ $ — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 27, 2018 | |
Earnings Per Share | |
Schedule of computation of basic and diluted earnings per share | Year Ended Year Ended Year Ended December 27, December 28, December 29, (in thousands, except per share data) 2018 2017 2016 Net income $ 116,187 $ 102,788 $ 43,039 Basic weighted average shares outstanding 96,770 90,951 83,432 Dilutive effect of share based awards 7,791 8,709 4,999 Diluted weighted average shares outstanding 104,561 99,660 88,431 Basic earnings per share $ 1.20 $ 1.13 $ 0.52 Diluted earnings per share $ 1.11 $ 1.03 $ 0.49 |
Schedule of awards excluded from computation | Year Ended Year Ended Year Ended December 27, December 28, December 29, (in thousands) 2018 2017 2016 Stock options 298 849 2,004 |
Selected Quarterly Financial _2
Selected Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 27, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Table Text Block] | Fiscal 2018 (in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 402,948 $ 434,279 $ 435,882 $ 436,739 Gross profit 165,386 177,638 178,226 181,018 Income from continuing operations 36,506 37,245 34,237 23,313 Basic earnings from continuing operations per share 0.38 0.39 0.35 0.24 Diluted earnings from continuing operations per share 0.35 0.35 0.33 0.22 Net income 31,871 39,846 26,568 17,902 Basic earnings per share 0.33 0.41 0.27 0.18 Diluted earnings per share 0.30 0.38 0.25 0.17 Fiscal 2017 (in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 307,296 $ 344,047 $ 343,923 $ 389,501 Gross profit 125,471 142,228 142,491 162,374 Income from continuing operations 22,672 34,102 28,596 32,401 Basic earnings from continuing operations per share 0.27 0.38 0.30 0.34 Diluted earnings from continuing operations per share 0.26 0.34 0.28 0.31 Net income 11,128 20,429 23,255 47,976 Basic earnings per share 0.13 0.22 0.25 0.51 Diluted earnings per share 0.13 0.20 0.22 0.46 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) ft² in Thousands | Apr. 24, 2017 | Dec. 27, 2018ft²statesegmentfacility | Dec. 28, 2017 | Dec. 29, 2016 | Dec. 31, 2015 |
Real Estate Properties [Line Items] | |||||
Number of reportable segments | segment | 1 | ||||
Number of states with facilities | state | 28 | ||||
Number of distribution centers | 3 | ||||
Fiscal year period | 364 days | 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 | 100 | ||||
Area of facility | ft² | 75 | ||||
Small Format Store [Member] | |||||
Real Estate Properties [Line Items] | |||||
Number of stores | 1 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Receivables and Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 27, 2018 | Dec. 28, 2017 | |
Accounts Receivable, Net [Abstract] | ||
Allowance for doubtful accounts | $ 184 | $ 349 |
Exposure from credit program | 251 | |
Inventory Adjustments [Abstract] | ||
Inventory valuation reserves | $ 4,265 | $ 2,936 |
Vendor Relationships | ||
Intangible Assets, Net (Including Goodwill) [Abstract] | ||
Useful life, intangible assets | 10 years | 10 years |
Maximum | ||
Accounts Receivable, Net [Abstract] | ||
Receivables collection period | 5 days | |
Maximum | Furniture, fixtures and equipment | ||
Property, Plant and Equipment, Gross [Abstract] | ||
Useful life, fixed assets | 7 years | |
Maximum | Leasehold improvements | ||
Property, Plant and Equipment, Gross [Abstract] | ||
Useful life, fixed assets | 25 years | |
Maximum | Computer software and hardware | ||
Property, Plant and Equipment, Gross [Abstract] | ||
Useful life, fixed assets | 7 years | |
Minimum | ||
Accounts Receivable, Net [Abstract] | ||
Receivables collection period | 3 days | |
Minimum | Furniture, fixtures and equipment | ||
Property, Plant and Equipment, Gross [Abstract] | ||
Useful life, fixed assets | 2 years | |
Minimum | Leasehold improvements | ||
Property, Plant and Equipment, Gross [Abstract] | ||
Useful life, fixed assets | 10 years | |
Minimum | Computer software and hardware | ||
Property, Plant and Equipment, Gross [Abstract] | ||
Useful life, fixed assets | 3 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Insurance and Derivatives (Details) $ in Millions | 12 Months Ended |
Dec. 27, 2018USD ($) | |
Insurance Loss Reserves [Abstract] | |
Maximum loss before additional coverage applies | $ 8.6 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Revenues, Advertising and Pre-Opening (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Revenue from Contract with Customer [Abstract] | |||
Number of days customer may return merchandise | 90 days | ||
Gift card breakage income | $ 1,584 | ||
Allowance for sales returns | 8,335 | $ 7,189 | |
Allowance for doubtful accounts | 184 | 349 | |
Marketing and Advertising Expense [Abstract] | |||
Advertising expense | 55,283 | 43,560 | $ 33,497 |
Pre-opening expenses | $ 26,145 | 16,485 | 13,732 |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||
Revenue from Contract with Customer [Abstract] | |||
Gift card breakage income | $ 757 | $ 627 | |
Maximum | |||
Revenue from Contract with Customer [Abstract] | |||
Receivables collection period | 5 days | ||
Marketing and Advertising Expense [Abstract] | |||
Period prior to store opening or relocation that pre-opening expenses begin | 6 months | ||
Minimum | |||
Revenue from Contract with Customer [Abstract] | |||
Receivables collection period | 3 days | ||
Marketing and Advertising Expense [Abstract] | |||
Period prior to store opening or relocation that pre-opening expenses begin | 3 months |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Loss on Debt and SBC (Details) - USD ($) $ / shares in Units, $ in Thousands | May 02, 2017 | Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 |
Gain (Loss) on Extinguishment of Debt [Abstract] | ||||
Number of shares issued | 10,147,025 | |||
Common stock, par value | $ 0.001 | |||
Net proceeds | $ 192,000 | |||
Payments on term loans | $ 192,000 | $ 3,500 | $ 197,500 | $ 98,334 |
Non-cash loss on early extinguishment of debt | $ (5,442) | $ (1,813) | ||
Stock options | Maximum | ||||
Stock-Based Compensation | ||||
Period of vesting provision | 5 years | |||
Stock options | Minimum | ||||
Stock-Based Compensation | ||||
Period of vesting provision | 1 year |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Dec. 27, 2018 | Dec. 28, 2017 | Dec. 31, 2015 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 243,563 | $ 119,550 | |
Additional paid-in capital | 340,462 | 323,419 | |
Deferred revenue | $ 5,244 | 22,523 | |
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 | 7,800 | ||
Deferred revenue | $ (7,800) | ||
Restatement Adjustment [Member] | Accounting Standards Update 2016-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ (148) | ||
Additional paid-in capital | $ 238 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | Dec. 27, 2018 | Dec. 28, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Retained Earnings (Accumulated Deficit) | $ 243,563 | $ 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 | 12 Months Ended | |||||||||
Dec. 27, 2018 | Sep. 27, 2018 | Jun. 28, 2018 | Mar. 29, 2018 | Dec. 28, 2017 | Sep. 28, 2017 | Jun. 29, 2017 | Mar. 30, 2017 | Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Net Sales | $ 436,739 | $ 435,882 | $ 434,279 | $ 402,948 | $ 389,501 | $ 343,923 | $ 344,047 | $ 307,296 | $ 1,709,848 | $ 1,384,767 | $ 1,050,759 |
Percentage of Net Sales | 100.00% | ||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||||
Net Sales | $ 1,384,767 | $ 1,050,759 | |||||||||
Percentage of Net Sales | 100.00% | 100.00% | |||||||||
Tile | |||||||||||
Net Sales | $ 476,337 | ||||||||||
Percentage of Net Sales | 27.00% | ||||||||||
Tile | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||||
Net Sales | $ 419,745 | $ 325,433 | |||||||||
Percentage of Net Sales | 30.00% | 31.00% | |||||||||
Decorative Accessories | |||||||||||
Net Sales | $ 325,139 | ||||||||||
Percentage of Net Sales | 19.00% | ||||||||||
Decorative Accessories | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||||
Net Sales | $ 257,684 | $ 188,371 | |||||||||
Percentage of Net Sales | 19.00% | 18.00% | |||||||||
Laminate Luxury Vinyl Plank | |||||||||||
Net Sales | $ 316,109 | ||||||||||
Percentage of Net Sales | 18.00% | ||||||||||
Laminate Luxury Vinyl Plank | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||||
Net Sales | $ 208,238 | $ 131,447 | |||||||||
Percentage of Net Sales | 15.00% | 12.00% | |||||||||
Installation Materials And Tools [Member] | |||||||||||
Net Sales | $ 272,994 | ||||||||||
Percentage of Net Sales | 16.00% | ||||||||||
Installation Materials And Tools [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||||
Net Sales | $ 217,427 | $ 165,330 | |||||||||
Percentage of Net Sales | 16.00% | 16.00% | |||||||||
Wood | |||||||||||
Net Sales | $ 192,087 | ||||||||||
Percentage of Net Sales | 12.00% | ||||||||||
Wood | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||||
Net Sales | $ 167,152 | $ 142,751 | |||||||||
Percentage of Net Sales | 12.00% | 14.00% | |||||||||
Natural Stone | |||||||||||
Net Sales | $ 113,565 | ||||||||||
Percentage of Net Sales | 7.00% | ||||||||||
Natural Stone | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||||
Net Sales | $ 104,670 | $ 90,866 | |||||||||
Percentage of Net Sales | 8.00% | 9.00% | |||||||||
Delivery and Other | |||||||||||
Net Sales | $ 13,617 | ||||||||||
Percentage of Net Sales | 1.00% | ||||||||||
Delivery and Other | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||||
Net Sales | $ 9,851 | $ 6,561 | |||||||||
Percentage of Net Sales | 0.00% | 0.00% |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 27, 2018 | Dec. 28, 2017 |
Accrued Expenses | ||
Accrued incentive compensation | $ 12,473 | $ 17,218 |
Sales tax payable | 12,046 | 9,171 |
Insurance reserve - incurred but not reported | 8,229 | 6,390 |
Other | 49,290 | 41,768 |
Accrued expenses | $ 82,038 | $ 74,547 |
Fixed Assets (Details)
Fixed Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Fixed assets, at cost | $ 480,049 | $ 325,658 | |
Less: accumulated depreciation and amortization | 151,683 | 104,706 | |
Fixed assets, net | 328,366 | 220,952 | |
Depreciation and amortization | 50,478 | 36,255 | $ 27,459 |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, at cost | 174,663 | 126,821 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, at cost | 216,461 | 141,174 | |
Computer software and hardware | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, at cost | 83,628 | 52,687 | |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, at cost | $ 5,297 | $ 4,976 |
Intangible Assets - Summary (De
Intangible Assets - Summary (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Intangible Assets [Line Items] | |||
Accumulated Amortization | $ (258) | $ (226) | |
Total | 109,588 | 109,588 | |
Amortization of Intangible Assets | 32 | 32 | $ 32 |
Trade Names | |||
Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 109,269 | $ 109,269 | |
Vendor Relationships | |||
Intangible Assets [Line Items] | |||
Useful life, intangible assets | 10 years | 10 years | |
Gross Carrying Amount | $ 319 | $ 319 | |
Accumulated Amortization | $ (258) | $ (226) |
Intangible Assets - Amortizatio
Intangible Assets - Amortization (Details) $ in Thousands | Dec. 27, 2018USD ($) |
Estimated future intangible asset amortization | |
2,019 | $ 32 |
2,020 | $ 29 |
Income Taxes - Provision (Detai
Income Taxes - Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Current (benefit) expense: | |||
Federal | $ 5,496 | $ (4,097) | $ 14,588 |
State | 1,669 | 479 | 2,422 |
Total current (benefit) expense | 7,165 | (3,618) | 17,010 |
Deferred (benefit)/expense: | |||
Federal | 922 | (250) | (4,765) |
State | (1,890) | (368) | (771) |
Total deferred (benefit)/expense | (968) | (618) | (5,536) |
Provision for income taxes | $ 6,197 | $ (4,236) | $ 11,474 |
Income Taxes - Effective rate r
Income Taxes - Effective rate reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Income Taxes [Line Items] | |||
Federal statutory tax rate (as a percent) | 21.00% | 35.00% | |
Computed expected provision at statutory rate | $ 25,700 | $ 34,499 | $ 19,080 |
State income taxes, net of federal income tax benefit | (627) | (28) | 1,073 |
Excess tax benefit related to options exercised | (17,478) | (20,762) | |
Non-qualified option holder dividend equivalent | (7,877) | ||
Other | 457 | 691 | (4) |
Total permanent differences | (17,021) | (20,071) | (7,881) |
Change in U.S. tax rate | (573) | (17,850) | |
Provision to return | (739) | (63) | (236) |
Federal tax credits | (685) | (577) | (413) |
Other, net | 142 | (146) | (149) |
Provision for income taxes | 6,197 | (4,236) | $ 11,474 |
State and Local Jurisdiction [Member] | |||
Income Taxes [Line Items] | |||
Excess tax benefit related to options exercised | $ 3,300 | $ 1,000 |
Income Taxes - Tax Cuts and Job
Income Taxes - Tax Cuts and Jobs Act (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 27, 2018 | Dec. 28, 2017 | |
Effect of Tax Cuts and Jobs Act of 2017 [Abstract] | ||
Federal statutory tax rate (as a percent) | 21.00% | 35.00% |
Provisional amount related to Tax Cuts and Jobs Act of 2017 | $ (17,900) | |
Adjustment to provisional amount | $ (600) | |
Decrease in effective tax rate, as a percent | (0.47%) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 27, 2018 | Dec. 28, 2017 |
Components of Deferred Tax Assets [Abstract] | ||
Accruals not currently deductible for tax purposes | $ 13,338 | $ 8,993 |
Tenant improvement allowances | 9,239 | 6,597 |
Inventories | 3,948 | 4,111 |
Stock based compensation | 3,684 | 3,108 |
Other intangibles | 361 | 405 |
Gift card liability | 242 | 648 |
Litigation accrual | 172 | 583 |
Other | 2,858 | 846 |
Total deferred tax assets | 33,842 | 25,291 |
Components of Deferred Tax Liabilities [Abstract] | ||
Intangible assets | (27,023) | (26,868) |
Fixed assets | (30,681) | (24,225) |
Other | (2,976) | (1,416) |
Total deferred tax liabilities | (60,680) | (52,509) |
Net deferred tax liabilities | $ (26,838) | $ (27,218) |
Income Taxes - Valuation and Un
Income Taxes - Valuation and Unrecognized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Income Taxes [Line Items] | |||
State net operating losses | $ (122,384) | $ (98,552) | $ (54,513) |
Valuation allowance | 0 | 0 | |
Unrecognized tax benefits | 0 | 0 | 0 |
Unrecognized tax benefits that would impact the effective tax rate | 0 | $ 0 | $ 0 |
State and Local Jurisdiction [Member] | |||
Income Taxes [Line Items] | |||
State net operating losses | 776 | ||
Net operating losses available to reduce future income taxes | $ 2,200 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring - USD ($) $ in Thousands | Dec. 27, 2018 | Dec. 28, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate cap | $ 710 | |
Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate cap | $ 1,076 | |
Not Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate cap | 1,075 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate cap | $ 710 | |
Level 2 | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate cap | 1,076 | |
Level 2 | Not Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate cap | $ 1,075 |
Derivatives and Risk Manageme_3
Derivatives and Risk Management (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Derivative [Line Items] | |||
Notional amount | $ 102,500 | ||
Derivative Asset, Noncurrent | 710 | ||
AOCI, Net of Tax | (72) | ||
Interest Rate Swap | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net [Abstract] | |||
Gain (loss) recognition in other comprehensive income (loss), effective portion | $ 100 | ||
Interest Rate Cap | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net [Abstract] | |||
Gain (loss) recognition in other comprehensive income (loss), effective portion | $ 391 | (381) | $ 176 |
Designated as Hedging Instrument [Member] | Interest Rate Cap | |||
Derivative [Line Items] | |||
Notional amount | 102,500 | 102,500 | |
Derivative Asset, Noncurrent | 1,076 | 710 | |
AOCI, Net of Tax | 177 | $ (133) | |
Not Designated as Hedging Instrument [Member] | Interest Rate Cap | |||
Derivative [Line Items] | |||
Notional amount | 102,500 | ||
Derivative Asset, Noncurrent | 1,075 | ||
AOCI, Net of Tax | $ 9 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Future minimum lease payments under non cancelable operating leases | |||
2,019 | $ 114,076 | ||
2,020 | 131,394 | ||
2,021 | 123,249 | ||
2,022 | 116,925 | ||
2,023 | 112,430 | ||
Thereafter | 710,643 | ||
Total minimum lease payments | 1,308,717 | ||
Lease expense | $ 94,103 | $ 71,524 | $ 53,899 |
Debt - Summary of Long-term Deb
Debt - Summary of Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 27, 2018 | Dec. 28, 2017 | Sep. 30, 2016 |
Debt Instrument [Line Items] | |||
Total debt at par value | $ 149,000 | $ 193,500 | |
Less: current maturities | 3,500 | 3,500 | |
Long-term debt maturities | 145,500 | 190,000 | |
Less: unamortized discount and debt issuance costs | 3,666 | 4,438 | |
Total long-term debt | $ 141,834 | 185,562 | |
Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Interest rate at end of period, as a percent | 4.48% | ||
Total debt at par value | $ 149,000 | 152,500 | $ 350,000 |
Wells Facility Revolving Line of Credit | |||
Debt Instrument [Line Items] | |||
Interest rate at end of period, as a percent | 3.72% | ||
Total debt at par value | $ 41,000 |
Debt - Repayment (Details)
Debt - Repayment (Details) - USD ($) $ / shares in Units, $ in Thousands | May 02, 2017 | Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | Sep. 14, 2018 | May 29, 2018 | Nov. 20, 2017 | Jul. 25, 2017 |
Debt Instrument [Line Items] | ||||||||
Number of shares issued | 10,147,025 | |||||||
Common stock, par value | $ 0.001 | |||||||
Share price | $ 21 | $ 26.01 | $ 37.250 | $ 45.80 | $ 36 | $ 40 | ||
Net proceeds | $ 192,000 | |||||||
Payments on term loans | 192,000 | $ 3,500 | $ 197,500 | $ 98,334 | ||||
Loss on extinguishment of debt | $ 5,442 | $ 1,813 | ||||||
Term Loan Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Payments on term loans | 192,000 | |||||||
Loss on extinguishment of debt | $ 5,400 | |||||||
Class A Common Stock | ||||||||
Debt Instrument [Line Items] | ||||||||
Common stock, par value | $ 0.001 | $ 0.001 |
Debt - Dividend (Details)
Debt - Dividend (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 |
Debt Instrument [Line Items] | ||||
Total debt at par value | $ 149,000 | $ 193,500 | ||
Debt issuance costs | 170 | 1,559 | $ 10,546 | |
ABL Facility | ||||
Debt Instrument [Line Items] | ||||
Term loan face amount | $ 200,000 | |||
Loss on extinguishment of debt | (162) | |||
Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Total debt at par value | 350,000 | $ 149,000 | $ 152,500 | |
Debt issuance costs | 10,347 | |||
Prior Term Loan Facility And GCI Facility | ||||
Debt Instrument [Line Items] | ||||
Loss on extinguishment of debt | $ (1,319) |
Debt - Term Loan Facility (Deta
Debt - Term Loan Facility (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Sep. 30, 2016 | |
Debt Instrument [Line Items] | |||
Total debt at par value | $ 149,000 | $ 193,500 | |
Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Total debt at par value | 149,000 | $ 152,500 | $ 350,000 |
Quarterly repayment amount | $ 875 | ||
Term Loan Facility | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Variable interest rate (as a percent) | 1.50% | ||
Term Loan Facility | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Variable interest rate (as a percent) | 2.50% | ||
Term Loan Facility | One Month LIBOR | |||
Debt Instrument [Line Items] | |||
Variable interest rate (as a percent) | 1.00% | ||
Term Loan Facility | Federal Funds Rate [Member] | |||
Debt Instrument [Line Items] | |||
Variable interest rate (as a percent) | 0.50% |
Debt - ABL Facility (Details)
Debt - ABL Facility (Details) - ABL Facility $ in Thousands | 12 Months Ended |
Dec. 27, 2018USD ($) | |
Line of Credit Facility [Line Items] | |
Revolving Line of Credit | $ 300,000 |
Eligible Percent Of Trade Receivables | 85.00% |
Available borrowing capacity | $ 289,141 |
Outstanding letters of credit | 10,859 |
Standby Letters of Credit [Member] | |
Line of Credit Facility [Line Items] | |
Revolving Line of Credit | $ 30,000 |
Base Rate [Member] | Minimum | |
Line of Credit Facility [Line Items] | |
Variable interest rate (as a percent) | 0.25% |
Base Rate [Member] | Maximum | |
Line of Credit Facility [Line Items] | |
Variable interest rate (as a percent) | 0.50% |
London Interbank Offered Rate (LIBOR) [Member] | Minimum | |
Line of Credit Facility [Line Items] | |
Variable interest rate (as a percent) | 1.25% |
London Interbank Offered Rate (LIBOR) [Member] | Maximum | |
Line of Credit Facility [Line Items] | |
Variable interest rate (as a percent) | 1.50% |
Federal Funds Rate [Member] | |
Line of Credit Facility [Line Items] | |
Variable interest rate (as a percent) | 0.50% |
One Month LIBOR | |
Line of Credit Facility [Line Items] | |
Variable interest rate (as a percent) | 1.00% |
Debt - Debt Maturities (Details
Debt - Debt Maturities (Details) - USD ($) $ in Thousands | Dec. 27, 2018 | Dec. 28, 2017 |
Debt | ||
2,019 | $ 3,500 | |
2,020 | 4,375 | |
2,021 | 2,625 | |
2,022 | 3,500 | |
2,023 | 135,000 | |
Total minimum debt payments | $ 149,000 | $ 193,500 |
Debt - Covenants, Deferred Debt
Debt - Covenants, Deferred Debt Issuance Cost And Original Issue Discount (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Debt Instrument [Line Items] | |||
Amortization expense | $ 1,045 | $ 1,205 | $ 954 |
ABL Facility | |||
Debt Instrument [Line Items] | |||
Percentage usage of facility to trigger covenant | 90.00% | ||
Deferred debt issuance costs | $ 902 | 1,005 | |
Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Deferred debt issuance costs | $ 3,666 | ||
Prior Term Loan Facility And GCI Facility | |||
Debt Instrument [Line Items] | |||
Deferred debt issuance costs | $ 4,438 |
Debt - Fair Value of Debt (Deta
Debt - Fair Value of Debt (Details) - USD ($) $ in Thousands | Dec. 27, 2018 | Dec. 28, 2017 |
Debt Instrument [Line Items] | ||
Total debt at par value | $ 149,000 | $ 193,500 |
Less: unamortized discount and debt issuance costs | 3,666 | 4,438 |
Net carrying amount | 145,334 | 189,062 |
Level 3 | ||
Debt Instrument [Line Items] | ||
Fair value | $ 147,883 | $ 193,881 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock and Conversion Features (Details) | 12 Months Ended |
Dec. 27, 2018item | |
Conversion of Stock [Line Items] | |
Number of classes of common stock | 3 |
Class A Common Stock | |
Conversion of Stock [Line Items] | |
Votes per share held | 1 |
Class B Common Stock | |
Conversion of Stock [Line Items] | |
Votes per share held | 0 |
Class C Common Stock | |
Conversion of Stock [Line Items] | |
Votes per share held | 0 |
Stockholders' Equity - 2017 Sto
Stockholders' Equity - 2017 Stock Incentive Plan (Details) - $ / shares | 12 Months Ended | ||||||||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | Sep. 14, 2018 | May 29, 2018 | Nov. 20, 2017 | Jul. 25, 2017 | May 02, 2017 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of options granted | 926,775 | 1,339,668 | 2,025,535 | ||||||
Share price | $ 26.01 | $ 37.250 | $ 45.80 | $ 36 | $ 40 | $ 21 | |||
2011 Stock Option Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares of stock authorized under the plan | 12,520,407 | 10,780,970 | |||||||
Shares available for grant | 179,575 | 104,269 | |||||||
2017 Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares of stock authorized under the plan | 5,000,000 | ||||||||
Shares available for grant | 2,850,768 | 3,690,255 | |||||||
Number of options granted | 1,254,465 | ||||||||
Number of restricted shares granted | 15,475 | ||||||||
Share price | $ 21 |
Stockholders' Equity - Secondar
Stockholders' Equity - Secondary Offering (Details) - $ / shares | Sep. 14, 2018 | May 29, 2018 | Nov. 20, 2017 | Jul. 25, 2017 | Dec. 27, 2018 | May 02, 2017 |
Stockholders' Equity | ||||||
Number of shares sold by stockholders | 11,500,000 | 10,000,000 | 7,475,000 | 10,718,550 | ||
Share Price | $ 37.250 | $ 45.80 | $ 36 | $ 40 | $ 26.01 | $ 21 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | Sep. 14, 2018 | May 29, 2018 | Nov. 20, 2017 | Jul. 25, 2017 | May 02, 2017 | Dec. 31, 2015 | |
Options | |||||||||
Outstanding at the beginning of period | 11,254,086 | 11,979,111 | 10,460,119 | ||||||
Granted | 926,775 | 1,339,668 | 2,025,535 | ||||||
Exercised | (2,069,195) | (1,828,339) | (145,140) | ||||||
Forfeited or expired | (258,838) | (236,354) | (361,403) | ||||||
Outstanding at the end of period | 9,852,828 | 11,254,086 | 11,979,111 | ||||||
Weighted Average Exercise Price | |||||||||
Outstanding at the beginning of period | $ 7.28 | $ 5.34 | $ 4.77 | ||||||
Granted | 34.07 | 21.68 | 9.94 | ||||||
Exercised | 5.09 | 4.85 | 3.48 | ||||||
Forfeited or expired | 13.12 | 9.17 | 6.65 | ||||||
Outstanding at the end of period | $ 10.11 | $ 7.28 | $ 5.34 | ||||||
Additional Disclosures | |||||||||
Options Exercisable at End of Year | 6,409,257 | 7,448,532 | 8,151,056 | 6,656,524 | |||||
Weighted Average Exercise Price of Exercisable Options | $ 5.21 | $ 4.52 | $ 4.20 | $ 4 | |||||
Weighted Average Fair Value/Share of Options Granted During the Year | 15.63 | $ 9.20 | $ 4.13 | ||||||
Share price | $ 26.01 | $ 37.250 | $ 45.80 | $ 36 | $ 40 | $ 21 | |||
Options exercised, intrinsic value | $ 87,151 | $ 62,508 | |||||||
Options outstanding, aggregate intrinsic value | $ 165,404 | ||||||||
Options outstanding, weighted-average remaining contractual life | 5 years 3 months 18 days | ||||||||
Options exercisable, aggregate intrinsic value | $ 133,485 | ||||||||
Options exercisable, weighted-average remaining contractual life | 3 years 9 months 18 days | ||||||||
Stock options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Contractual term | 10 years | ||||||||
Fair Value Assumptions | |||||||||
Risk free interest rate | 3.05% | 2.06% | 1.43% | ||||||
Expected volatility | 42.00% | 39.00% | 40.00% | ||||||
Expected life (in years) | 6 years 3 months 15 days | 6 years 6 months | 6 years 6 months | ||||||
Additional Disclosures | |||||||||
Unrecognized compensation cost amount | $ 26,135 | ||||||||
Unrecognized compensation cost period for recognition | 3 years 6 months | ||||||||
Stock options | Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Period of vesting provision | 5 years | ||||||||
Stock options | Minimum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Period of vesting provision | 1 year |
Stockholders' Equity - Restrict
Stockholders' Equity - Restricted Stock (Details) - Restricted Stock - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 27, 2018 | Dec. 28, 2017 | |
Restricted Stock | ||
Granted | 10,165 | 15,475 |
Period of vesting provision | 4 years | |
Aggregate fair value | $ 566 | $ 767 |
Shares outstanding | 21,775 | 15,475 |
Unrecognized compensation cost amount | $ 489 | $ 270 |
Unrecognized compensation cost period for recognition | 2 years | 3 years 3 months 18 days |
Minimum | ||
Restricted Stock | ||
Period of vesting provision | 2 years | |
Maximum | ||
Restricted Stock | ||
Period of vesting provision | 4 years |
Stockholders' Equity - Employee
Stockholders' Equity - Employee Stock Purchase Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | May 17, 2018 | Dec. 27, 2018 | Dec. 28, 2017 | May 02, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock, par value | $ 0.001 | |||
Class A Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock, par value | $ 0.001 | $ 0.001 | ||
Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair market value measurement period | 6 months | |||
Stock purchase plan, employee contributions | $ 1,400 | |||
Stock purchase plan, expense | $ 333 | |||
Employee Stock Purchase Plan [Member] | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Purchase price, as a percentage of fair market value | 85.00% | |||
Employee Stock Purchase Plan [Member] | 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 | |||
Common stock, par value | $ 0.001 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 27, 2018 | Sep. 27, 2018 | Jun. 28, 2018 | Mar. 29, 2018 | Dec. 28, 2017 | Sep. 28, 2017 | Jun. 29, 2017 | Mar. 30, 2017 | Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Earnings Per Share | |||||||||||
Net income | $ 17,902 | $ 26,568 | $ 39,846 | $ 31,871 | $ 47,976 | $ 23,255 | $ 20,429 | $ 11,128 | $ 116,187 | $ 102,788 | $ 43,039 |
Basic weighted average shares outstanding | 96,770 | 90,951 | 83,432 | ||||||||
Dilutive effect of share based awards | 7,791 | 8,709 | 4,999 | ||||||||
Diluted weighted average shares outstanding | 104,561 | 99,660 | 88,431 | ||||||||
Basic earnings per share | $ 0.18 | $ 0.27 | $ 0.41 | $ 0.33 | $ 0.51 | $ 0.25 | $ 0.22 | $ 0.13 | $ 1.20 | $ 1.13 | $ 0.52 |
Diluted earnings per share | $ 0.17 | $ 0.25 | $ 0.38 | $ 0.30 | $ 0.46 | $ 0.22 | $ 0.20 | $ 0.13 | $ 1.11 | $ 1.03 | $ 0.49 |
Earnings Per Share - Dilutive e
Earnings Per Share - Dilutive effects of share based awards (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
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) | 298 | 849 | 2,004 |
Selected Quarterly Financial _3
Selected Quarterly Financial Information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 27, 2018 | Sep. 27, 2018 | Jun. 28, 2018 | Mar. 29, 2018 | Dec. 28, 2017 | Sep. 28, 2017 | Jun. 29, 2017 | Mar. 30, 2017 | Dec. 27, 2018 | Dec. 28, 2017 | Dec. 29, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net Sales | $ 436,739 | $ 435,882 | $ 434,279 | $ 402,948 | $ 389,501 | $ 343,923 | $ 344,047 | $ 307,296 | $ 1,709,848 | $ 1,384,767 | $ 1,050,759 |
Gross Profit | 181,018 | 178,226 | 177,638 | 165,386 | 162,374 | 142,491 | 142,228 | 125,471 | 702,268 | 572,564 | 429,262 |
Income from continuing operations | $ 23,313 | $ 34,237 | $ 37,245 | $ 36,506 | $ 32,401 | $ 28,596 | $ 34,102 | $ 22,672 | |||
Basic earnings from continuing operations per share | $ 0.24 | $ 0.35 | $ 0.39 | $ 0.38 | $ 0.34 | $ 0.30 | $ 0.38 | $ 0.27 | |||
Diluted earnings from continuing operations per share | $ 0.22 | $ 0.33 | $ 0.35 | $ 0.35 | $ 0.31 | $ 0.28 | $ 0.34 | $ 0.26 | |||
Net income | $ 17,902 | $ 26,568 | $ 39,846 | $ 31,871 | $ 47,976 | $ 23,255 | $ 20,429 | $ 11,128 | $ 116,187 | $ 102,788 | $ 43,039 |
Basic earnings per share | $ 0.18 | $ 0.27 | $ 0.41 | $ 0.33 | $ 0.51 | $ 0.25 | $ 0.22 | $ 0.13 | $ 1.20 | $ 1.13 | $ 0.52 |
Diluted earnings per share | $ 0.17 | $ 0.25 | $ 0.38 | $ 0.30 | $ 0.46 | $ 0.22 | $ 0.20 | $ 0.13 | $ 1.11 | $ 1.03 | $ 0.49 |