Floor & Decor (FND) 10-Q 2 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 28, 2019	Apr. 30, 2019
Document and Entity Information
Entity Registrant Name	Floor & Decor Holdings, Inc.
Entity Central Index Key	0001507079
Document Type	10-Q
Document Period End Date	Mar. 28, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-26
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		98,244,175
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2019

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 28, 2019	Dec. 27, 2018
Current assets:
Cash and cash equivalents	$ 451	$ 644
Income taxes receivable	0	4,324
Receivables, net	66,101	67,527
Inventories, net	437,504	471,014
Prepaid expenses and other current assets	23,342	15,949
Total current assets	527,398	559,458
Fixed assets, net	338,888	328,366
Right of use assets	659,115	0
Intangible assets, net	109,322	109,330
Goodwill	227,447	227,447
Other assets	11,181	9,490
Total long-term assets	1,345,953	674,633
Total assets	1,873,351	1,234,091
Current liabilities:
Current portion of term loans	3,500	3,500
Current portion of lease liability	73,615	0
Trade accounts payable	229,498	313,503
Accrued expenses and other current liabilities	76,390	82,038
Income taxes payable	8,765	0
Deferred revenue	6,581	5,244
Total current liabilities	398,349	404,285
Term loans	141,152	141,834
Revolving line of credit	2,100	0
Deferred rent	0	36,980
Lease liabilities	683,672	0
Deferred income tax liabilities, net	25,666	26,838
Tenant improvement allowances	0	37,295
Other liabilities	2,451	2,550
Total long-term liabilities	855,041	245,497
Total liabilities	1,253,390	649,782
Commitments and contingencies
Capital stock:
Preferred stock, $0.001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding at March 28, 2019 and December 27, 2018	0	0
Additional paid-in capital	345,907	340,462
Accumulated other comprehensive income (loss), net	(148)	186
Retained earnings	274,104	243,563
Total stockholders' equity	619,961	584,309
Total liabilities and stockholders' equity	1,873,351	1,234,091
Class A Common Stock
Capital stock:
Common stock	98	98
Class B Common Stock
Capital stock:
Common stock	0	0
Class C Common Stock
Capital stock:
Common stock	$ 0	$ 0

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 28, 2019	Dec. 27, 2018
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	97,997,529	97,588,539
Common stock, shares outstanding	97,997,529	97,588,539
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 Operations and Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2019	Mar. 29, 2018
Income Statement [Abstract]
Net Sales	$ 477,050	$ 402,948
Type of Revenue [Extensible List]	us-gaap:ProductMember
Cost of sales	$ 275,676	237,562
Type of Cost, Good or Service [Extensible List]	us-gaap:ProductMember
Gross profit	$ 201,374	165,386
Operating expenses:
Selling and store operating	127,383	102,567
General and administrative	30,202	23,339
Pre-opening	4,027	2,974
Total operating expenses	161,612	128,880
Operating income	39,762	36,506
Interest expense	2,921	1,784
Income before income taxes	36,841	34,722
Provision for income taxes	6,121	2,851
Net income	30,720	31,871
Change in fair value of hedge instruments, net of tax	(334)	430
Total comprehensive income	$ 30,386	$ 32,301
Basic earnings per share	$ 0.31	$ 0.33
Diluted earnings per share	$ 0.29	$ 0.30

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common stockClass A Common Stock	Additional paid-in capital	Accumulated other comprehensive income (loss)	Retained earnings	Class A Common Stock	Class B Common Stock	Class C Common Stock	Total
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect from adoption				$ 7,826				$ 7,826
Balance at Dec. 28, 2017	$ 96	$ 323,419	$ (205)	119,550				442,860
Balance (in shares) at Dec. 28, 2017	95,509,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense		1,415						1,415
Exercise of stock options		3,195						3,195
Exercise of stock options (in shares)	585,000
Other comprehensive gain (loss), net of tax			430					430
Net income				31,871				31,871
Balance at Mar. 29, 2018	$ 96	328,029	225	159,247				487,597
Balance (in shares) at Mar. 29, 2018	96,094,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect from adoption				(179)				(179)
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
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense		2,250						2,250
Exercise of stock options		1,776						1,776
Exercise of stock options (in shares)	348,000
Shares issued under employee stock plan		1,419						1,419
Shares issued under employee stock plan (in shares)	61,000
Other comprehensive gain (loss), net of tax			(334)					(334)
Net income				30,720				30,720
Balance at Mar. 28, 2019	$ 98	$ 345,907	$ (148)	$ 274,104				$ 619,961
Balance (in shares) at Mar. 28, 2019	97,997,000				97,997,529	0	0

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2019	Mar. 29, 2018
Operating activities
Net income	$ 30,720	$ 31,871
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	17,184	11,534
Amortization of tenant improvement allowances	0	(1,045)
Deferred income taxes	(1,057)	2,111
Interest cap derivative contracts	610	(535)
Stock based compensation expense	2,250	1,415
Changes in operating assets and liabilities:
Receivables, net	22,568	15,775
Inventories, net	33,510	(9,262)
Trade accounts payable	(84,005)	(3,723)
Accrued expenses and other current liabilities	3,017	(12,926)
Income taxes	13,143	780
Deferred revenue	1,337	1,500
Deferred rent	0	2,707
Tenant improvement allowances	0	128
Other, net	(12,256)	282
Net cash provided by operating activities	27,021	40,612
Investing activities
Purchases of fixed assets	(31,634)	(27,841)
Net cash used in investing activities	(31,634)	(27,841)
Financing activities
Borrowings on revolving line of credit	80,200	51,900
Payments on revolving line of credit	(78,100)	(66,100)
Payments on term loans	(875)	(1,750)
Proceeds from exercise of stock options	1,776	3,195
Proceeds from employee stock purchase plan	1,419	0
Net cash used in financing activities	4,420	(12,755)
Net (decrease) increase in cash and cash equivalents	(193)	16
Cash and cash equivalents, beginning of the period	644	556
Cash and cash equivalents, end of the period	451	572
Supplemental disclosures of cash flow information
Buildings and equipment acquired under operating leases	53,049	0
Cash paid for interest	1,987	2,368
Cash paid for income taxes	0	19
Fixed assets accrued at the end of the period	10,836	16,332
Fixed assets acquired as part of lease - paid for by lessor	$ 0	$ 0

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 28, 2019
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	1. Summary of Significant Accounting Policies Nature of Business Floor & Decor Holdings, Inc., together with its subsidiaries (the “Company,” “we,” “our” or “us”) is a highly differentiated, rapidly growing specialty retailer of hard surface flooring and related accessories. We offer a broad in stock assortment of tile, wood, laminate and natural stone flooring along with decorative and installation accessories at everyday low prices. Our stores appeal to a variety of customers, including professional installers and commercial businesses (“Pro”), Do It Yourself customers (“DIY”) and customers who buy the products for professional installation (“Buy it Yourself” or “BIY”). We operate within one reportable segment. As of March 28, 2019, the Company, through its wholly owned subsidiary, Floor and Decor Outlets of America, Inc. (“F&D”) , operates 103 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 26, 2019 (“fiscal 2019”) and December 27, 2018 (“fiscal 2018”) include 52 weeks. When a 53-week fiscal year occurs, we report the additional week at the end of the fiscal fourth quarter. 52-week fiscal years consist of thirteen-week periods in the first, second, third and fourth quarters of the fiscal year. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and our wholly owned subsidiaries. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information. The Condensed Consolidated Balance Sheet as of December 27, 2018 has been derived from the audited Consolidated Balance Sheet for the fiscal year then ended. The interim condensed consolidated financial statements should be read together with the audited consolidated financial statements and related footnote disclosures included in the Company’s Annual Report on Form 10-K for fiscal 2018, filed with the Securities and Exchange Commission (the “SEC”) on February 25, 2019 (the “Annual Report”). Management believes the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments considered necessary for a fair statement of results for the interim periods presented. Results of operations for the thirteen weeks ended March 28, 2019 and March 29, 2018 are not necessarily indicative of the results to be expected for the full year. There have been no updates to our Significant Accounting Policies since the Annual Report, except for the policy changes in connection with the newly adopted lease accounting standard outlined in Note 5. For information regarding our Significant Accounting Policies and Estimates, see the “Summary of Significant Accounting Policies” section of “Item 8. Financial Statements and Supplementary Data” of our Annual Report. Recently Issued Accounting Pronouncements There have been no updates to Recently Issued Accounting Pronouncements that have yet to be adopted since the Annual Report. For information regarding Recently Issued Accounting Pronouncements, see the “Summary of Significant Accounting Policies” section of “Item 8. Financial Statements and Supplementary Data” of our Annual Report. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, " Leases (Topic 842) ." ASU No. 2016-02 requires that lessees recognize lease assets and lease liabilities on the balance sheet with an option to exclude short-term leases (leases with terms of 12 months or less). The guidance also requires disclosures about the amount, timing, and uncertainty of cash flows arising from leases. We adopted the ASU on December 28, 2018, the first day of our fiscal year 2019, using the modified retrospective approach. The cumulative effect adjustment upon adoption resulted in an immaterial opening balance sheet reduction to retained earnings. The adoption of ASU No. 2016-02 in the first quarter of fiscal 2019 had a material impact on the Company’s Condensed Consolidated Balance Sheet in respect to the right of use assets, lease liabilities, tenant improvement allowances, and deferred rent but did not have a material impact on the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income or Statements of Cash Flows. Refer to Note 5 for further details.

Revenues

Revenues	3 Months Ended
	Mar. 28, 2019
Revenue from Contract with Customer [Abstract]
Revenues	2. Revenues Disaggregated Revenue The following table presents the net sales of each major product category (in thousands): Thirteen Weeks Ended March 28, 2019 March 29, 2018 % of % of Product Category Net Sales Net Sales Net Sales Net Sales Tile $ 125,310 26 % $ 117,402 29 % Laminate / Luxury Vinyl Plank 97,502 20 66,892 17 Decorative Accessories 94,440 20 78,489 19 Installation Materials and Tools 79,709 17 63,581 16 Wood 49,230 10 46,485 12 Natural Stone 30,887 7 28,006 7 Delivery and Other (28) — 2,093 — Total $ 477,050 100 % $ 402,948 100 % .

Debt

Debt	3 Months Ended
	Mar. 28, 2019
Debt
Debt	3. Debt Fair Value of Debt Market risk associated with our fixed and variable rate long‑term debt relates to the potential change in fair value and negative impact to future earnings, respectively, from a change in interest rates. The aggregate fair value of debt is based primarily on our estimates of interest rates, maturities, credit risk, and underlying collateral and is classified as Level 3 within the fair value hierarchy. At March 28, 2019 and December 27, 2018, the carrying amounts and fair values of our debt were as follows: March 28, December 27, (in thousands) 2019 2018 Total debt at par value $ 150,225 $ 149,000 Less: unamortized discount and debt issuance costs 3,473 3,666 Net carrying amount $ 146,752 $ 145,334 Fair value $ 148,003 $ 147,883

Income Taxes

Income Taxes	3 Months Ended
	Mar. 28, 2019
Income Taxes
Income Taxes	4. Income Taxes Our effective income tax rates were 16.6% and 8.2% for the thirteen weeks ended March 28, 2019 and March 29, 2018, respectively.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 28, 2019
Commitments and Contingencies.
Commitments and Contingencies	5. Commitments and Contingencies Lease Commitments On December 28, 2018, the first day of our fiscal year 2019, we adopted ASU No. 2016-02, "Leases (Topic 842)", which requires that lessees recognize lease assets and lease liabilities for all leases on the balance sheet with an option to exclude short-term leases (leases with terms of 12 months or less). We adopted ASU No. 2016-02 using the modified retrospective approach and elected the package of practical expedients to use in transition, which permitted us not to reassess, under the new standard, our prior conclusions about lease identification and lease classification. The cumulative effect adjustment upon adoption of ASU No. 2016-02 resulted in an immaterial adjustment to retained earnings. The adoption also resulted in the addition of $621 million right of use assets and corresponding $701 million lease liabilities to our balance sheet, while eliminating deferred rent and tenant improvement allowances. Additionally, we do not separate lease and nonlease components of contracts. The majority of our long-term operating lease agreements through F&D are for our corporate office, retail locations, and distribution centers, which expire in various years through 2038. All of our building leases have 10-15 year lease terms, except one lease which has a 20-year term. The majority of our building leases also include options to extend, which are factored into the recognition of their respective assets and liabilities when appropriate. Additionally, one building lease contains variable lease payments, which are determined based on a percentage of retail sales over a contractual level, and we sublease real estate within one store and one distribution center to third parties. Certain lease agreements include escalating rents over the lease terms which, under the new accounting standard, results in rent being expensed on a straight‑line basis over the life of the lease that commences on the date we have the right to control the property. Our lease agreements do not contain any residual value guarantees or restrictive covenants that would reasonably be expected to have a material impact on our business. As most of our leases do not provide a readily determinable implicit rate, we use a third party to determine our incremental borrowing rate, specifically the Bloomberg yield curve for US consumers with a BB- credit rating. The rate is adjusted for collateralization as well as inflation. Lease Position The table below presents supplemental balance sheet information related to operating leases. As of (in thousands, except lease term and discount rate) Balance Sheet Classification March 28, 2019 Assets Building Right of use assets $ 647,667 Equipment Right of use assets 6,263 Land Right of use assets 245 Software Right of use assets 4,940 Total operating lease assets $ 659,115 Liabilities Current Building Current portion of lease liabilities $ 68,927 Equipment Current portion of lease liabilities 2,784 Land Current portion of lease liabilities 93 Software Current portion of lease liabilities 1,811 Total current operating lease liabilities $ 73,615 Noncurrent Building Lease liabilities $ 675,769 Equipment Lease liabilities 4,663 Land Lease liabilities 158 Software Lease liabilities 3,082 Total noncurrent operating lease liabilities $ 683,672 Total operating lease liabilities $ 757,287 Weighted-average remaining lease term 9 years Weighted-average discount rate Lease Costs The table below presents components of lease expense for operating leases. Thirteen Weeks Ended (in thousands) Classification March 28, 2019 Operating lease cost (1) Selling and store operating $ 26,015 Sublease income Selling and store operating (623) Total lease cost $ 25,392 (1) Includes variable lease costs, which are immaterial. Undiscounted Cash Flows Future minimum lease payments under non‑cancelable operating leases (with initial or remaining lease terms in excess of one year) as of March 28, 2019, were: (in thousands) Amount Thirty-nine weeks ended December 26, 2019 $ 82,939 2020 112,086 2021 105,317 2022 98,163 2023 93,513 Thereafter 503,402 Total minimum lease payments (2) $ 995,420 Less: amount of lease payments representing interest 238,133 Present value of future minimum lease payments 757,287 Less: current obligations under leases 73,615 Long-term lease obligations $ 683,672 (2) Future lease payments exclude $311 million of legally binding minimum lease payments for operating leases signed but not yet commenced. For the thirteen weeks ended March 28, 2019, cash paid for operating leases was $24.6 million. Litigation We are subject to other various legal actions, claims and proceedings arising in the ordinary course of business, which may include claims related to general liability, workers’ compensation, product liability, intellectual property and employment-related matters resulting from our business activities. We establish reserves for specific legal proceedings when we determine that the likelihood of an unfavorable outcome is probable and the amount of loss can be reasonably estimated. These proceedings are not expected to have a material impact on our consolidated financial position, cash flows or results of operations.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 28, 2019
Stock-Based Compensation Abstract
Stock-Based Compensation	6. Stock Based Compensation At our 2018 annual meeting of stockholders held on May 17, 2018, our stockholders approved the Floor & Decor Holdings, Inc. Employee Stock Purchase Plan (the “ESPP”), which became available to substantially all of our employees beginning in the third quarter of fiscal 2018. The ESPP permits eligible employees to purchase shares of our common stock through payroll deductions, subject to certain limitations. The purchase price of the shares under the ESPP in no event will be less than the lesser of 85% of the lower of the fair market value of our common stock on either the first or last trading day of each six-month offering period. There were 1,500,000 shares of our Class A common stock, par value $0.001 per share, approved for issuance. On December 31, 2018, $1.4 million in contributions were used to purchase 60,871 shares of our Class A common stock. Additionally, during the thirteen weeks ended March 28, 2019, the Company recognized $143 thousand of stock-based compensation expense related to the ESPP.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 28, 2019
Earnings Per Share
Earnings Per Share	7. Earnings Per Share Net Income per Common Share We calculate basic earnings per share by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding adjusted for the dilutive effect of stock options. The following table shows the computation of basic and diluted earnings per share: Thirteen Weeks Ended March 28, March 29, (in thousands, except per share data) 2019 2018 Net income $ 30,720 $ 31,871 Basic weighted average shares outstanding 97,785 95,714 Dilutive effect of share based awards 6,536 8,951 Diluted weighted average shares outstanding 104,321 104,665 Basic earnings per share $ 0.31 $ 0.33 Diluted earnings per share $ 0.29 $ 0.30 The following awards have been excluded from the computation of dilutive effect of share based awards because the effect would be anti‑dilutive: Thirteen Weeks Ended March 28, March 29, (in thousands) 2019 2018 Stock options 986 98

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 28, 2019
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 26, 2019 (“fiscal 2019”) and December 27, 2018 (“fiscal 2018”) include 52 weeks. When a 53-week fiscal year occurs, we report the additional week at the end of the fiscal fourth quarter. 52-week fiscal years consist of thirteen-week periods in the first, second, third and fourth quarters of the fiscal year.
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and our wholly owned subsidiaries. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information. The Condensed Consolidated Balance Sheet as of December 27, 2018 has been derived from the audited Consolidated Balance Sheet for the fiscal year then ended. The interim condensed consolidated financial statements should be read together with the audited consolidated financial statements and related footnote disclosures included in the Company’s Annual Report on Form 10-K for fiscal 2018, filed with the Securities and Exchange Commission (the “SEC”) on February 25, 2019 (the “Annual Report”). Management believes the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments considered necessary for a fair statement of results for the interim periods presented. Results of operations for the thirteen weeks ended March 28, 2019 and March 29, 2018 are not necessarily indicative of the results to be expected for the full year.
Recent Accounting Pronouncements	Recently Issued Accounting Pronouncements There have been no updates to Recently Issued Accounting Pronouncements that have yet to be adopted since the Annual Report. For information regarding Recently Issued Accounting Pronouncements, see the “Summary of Significant Accounting Policies” section of “Item 8. Financial Statements and Supplementary Data” of our Annual Report. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, " Leases (Topic 842) ." ASU No. 2016-02 requires that lessees recognize lease assets and lease liabilities on the balance sheet with an option to exclude short-term leases (leases with terms of 12 months or less). The guidance also requires disclosures about the amount, timing, and uncertainty of cash flows arising from leases. We adopted the ASU on December 28, 2018, the first day of our fiscal year 2019, using the modified retrospective approach. The cumulative effect adjustment upon adoption resulted in an immaterial opening balance sheet reduction to retained earnings. The adoption of ASU No. 2016-02 in the first quarter of fiscal 2019 had a material impact on the Company’s Condensed Consolidated Balance Sheet in respect to the right of use assets, lease liabilities, tenant improvement allowances, and deferred rent but did not have a material impact on the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income or Statements of Cash Flows. Refer to Note 5 for further details.

Revenues (Tables)

Revenues (Tables)	3 Months Ended
	Mar. 28, 2019
Disaggregation of Revenue [Abstract]
Disaggregated Revenue	Thirteen Weeks Ended March 28, 2019 March 29, 2018 % of % of Product Category Net Sales Net Sales Net Sales Net Sales Tile $ 125,310 26 % $ 117,402 29 % Laminate / Luxury Vinyl Plank 97,502 20 66,892 17 Decorative Accessories 94,440 20 78,489 19 Installation Materials and Tools 79,709 17 63,581 16 Wood 49,230 10 46,485 12 Natural Stone 30,887 7 28,006 7 Delivery and Other (28) — 2,093 — Total $ 477,050 100 % $ 402,948 100 %

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 28, 2019
Debt
Schedule of fair value debt	March 28, December 27, (in thousands) 2019 2018 Total debt at par value $ 150,225 $ 149,000 Less: unamortized discount and debt issuance costs 3,473 3,666 Net carrying amount $ 146,752 $ 145,334 Fair value $ 148,003 $ 147,883

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 28, 2019
Commitments and Contingencies.
Schedule of supplemental balance sheet information related to operating leases	As of (in thousands, except lease term and discount rate) Balance Sheet Classification March 28, 2019 Assets Building Right of use assets $ 647,667 Equipment Right of use assets 6,263 Land Right of use assets 245 Software Right of use assets 4,940 Total operating lease assets $ 659,115 Liabilities Current Building Current portion of lease liabilities $ 68,927 Equipment Current portion of lease liabilities 2,784 Land Current portion of lease liabilities 93 Software Current portion of lease liabilities 1,811 Total current operating lease liabilities $ 73,615 Noncurrent Building Lease liabilities $ 675,769 Equipment Lease liabilities 4,663 Land Lease liabilities 158 Software Lease liabilities 3,082 Total noncurrent operating lease liabilities $ 683,672 Total operating lease liabilities $ 757,287 Weighted-average remaining lease term 9 years Weighted-average discount rate
Schedule of components of lease expense	Thirteen Weeks Ended (in thousands) Classification March 28, 2019 Operating lease cost (1) Selling and store operating $ 26,015 Sublease income Selling and store operating (623) Total lease cost $ 25,392 (1) Includes variable lease costs, which are immaterial.
Schedule of Future minimum lease payments under non cancelable operating leases	(in thousands) Amount Thirty-nine weeks ended December 26, 2019 $ 82,939 2020 112,086 2021 105,317 2022 98,163 2023 93,513 Thereafter 503,402 Total minimum lease payments (2) $ 995,420 Less: amount of lease payments representing interest 238,133 Present value of future minimum lease payments 757,287 Less: current obligations under leases 73,615 Long-term lease obligations $ 683,672 (2) Future lease payments exclude $311 million of legally binding minimum lease payments for operating leases signed but not yet commenced. For the thirteen weeks ended March 28, 2019, cash paid for operating leases was $24.6 million.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 28, 2019
Earnings Per Share
Schedule of computation of basic and diluted earnings per share	Thirteen Weeks Ended March 28, March 29, (in thousands, except per share data) 2019 2018 Net income $ 30,720 $ 31,871 Basic weighted average shares outstanding 97,785 95,714 Dilutive effect of share based awards 6,536 8,951 Diluted weighted average shares outstanding 104,321 104,665 Basic earnings per share $ 0.31 $ 0.33 Diluted earnings per share $ 0.29 $ 0.30
Schedule of awards excluded from computation	Thirteen Weeks Ended March 28, March 29, (in thousands) 2019 2018 Stock options 986 98

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) ft² in Thousands	3 Months Ended	12 Months Ended
	Mar. 28, 2019ft²statesegmentfacility	Dec. 26, 2019	Dec. 27, 2018
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
Fiscal quarter period	91 days
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	103
Area of facility | ft²	75
Small Format Store [Member]
Real Estate Properties [Line Items]
Number of stores	1

Disaggregated Revenue (Details)

Disaggregated Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2019	Mar. 29, 2018
Net Sales	$ 477,050	$ 402,948
Percentage of Net Sales	100.00%	100.00%
Tile
Net Sales	$ 125,310	$ 117,402
Percentage of Net Sales	26.00%	29.00%
Decorative Accessories
Net Sales	$ 94,440	$ 78,489
Percentage of Net Sales	20.00%	19.00%
Laminate Luxury Vinyl Plank
Net Sales	$ 97,502	$ 66,892
Percentage of Net Sales	20.00%	17.00%
Installation Materials And Tools
Net Sales	$ 79,709	$ 63,581
Percentage of Net Sales	17.00%	16.00%
Wood
Net Sales	$ 49,230	$ 46,485
Percentage of Net Sales	10.00%	12.00%
Natural Stone
Net Sales	$ 30,887	$ 28,006
Percentage of Net Sales	7.00%	7.00%
Delivery and Other
Net Sales	$ (28)	$ 2,093
Percentage of Net Sales	0.00%	0.00%

Debt - Fair Value of Debt (Deta

Debt - Fair Value of Debt (Details) - USD ($) $ in Thousands	Mar. 28, 2019	Dec. 27, 2018
Debt Instrument [Line Items]
Total debt at par value	$ 150,225	$ 149,000
Less: unamortized discount and debt issuance costs	3,473	3,666
Net carrying amount	146,752	145,334
Level 3
Debt Instrument [Line Items]
Fair value	$ 148,003	$ 147,883

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Mar. 28, 2019	Mar. 29, 2018
Income Taxes
Effective income tax rate (as a percent)	16.60%	8.20%

Commitments and Contingencies -

Commitments and Contingencies - Lease costs (Details) $ in Thousands	3 Months Ended
	Mar. 28, 2019USD ($)facility	Dec. 28, 2018USD ($)	Dec. 27, 2018USD ($)
Lease Commitments
Lease, Practical Expedients, Package [true false]	true
Right of use assets	$ 659,115		$ 0
Operating Lease, Liability, Total	$ 757,287
Lease term for 1 particular lease	20 years
Existence of option to extend	true
Number of leases with variable payments | facility	1
Number of stores subleased | facility	1
Number of distribution centers subleased | facility	1
Existence of residual value guarantee	false
Current portion of lease liability	$ 73,615		0
Lease liabilities	$ 683,672		$ 0
Weighted average remaining lease term	9 years
Weighted average discount rate	5.40%
Lease, Cost [Abstract]
Operating lease cost	$ 26,015
Sublease income	(623)
Lease, Cost, Total	25,392
Building [Member]
Lease Commitments
Right of use assets	647,667
Current portion of lease liability	68,927
Lease liabilities	675,769
Equipment [Member]
Lease Commitments
Right of use assets	6,263
Current portion of lease liability	2,784
Lease liabilities	4,663
Land [Member]
Lease Commitments
Right of use assets	245
Current portion of lease liability	93
Lease liabilities	158
Software and Software Development Costs [Member]
Lease Commitments
Right of use assets	4,940
Current portion of lease liability	1,811
Lease liabilities	$ 3,082
Minimum
Lease Commitments
Lease term	10 years
Maximum
Lease Commitments
Lease term	15 years
Accounting Standards Update 2016-02 [Member] | Restatement Adjustment [Member]
Lease Commitments
Right of use assets		$ 621,000
Operating Lease, Liability, Total		$ 701,000

Commitments and Contingencies_2

Commitments and Contingencies - Lease Maturity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 28, 2019	Dec. 27, 2018
Operating Lease Liabilities, Payments Due [Abstract]
Thirty-nine weeks ended December 26, 2019		$ 82,939
2020		112,086
2021		105,317
2022		98,163
2023		93,513
Thereafter		503,402
Total minimum lease payments		995,420
Amount representing interest		238,133
Operating Lease, Liability, Total		757,287
Current portion of lease liability		73,615	$ 0
Long-term lease obligations		683,672	$ 0
Minimum lease payments for leases not yet commenced		$ 311,000
Cash paid during the period against operating lease liabilities	$ 24,600

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	Dec. 31, 2018	May 17, 2018	Mar. 28, 2019	Dec. 27, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued under employee stock plan (in shares)	60,871
Shares issued under employee stock plan	$ 1,400		$ 1,419
Stock purchase plan, expense			$ 143
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
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
	Mar. 28, 2019	Mar. 29, 2018
Earnings Per Share
Net income	$ 30,720	$ 31,871
Basic weighted average shares outstanding	97,785	95,714
Dilutive effect of share based awards	6,536	8,951
Diluted weighted average shares outstanding	104,321	104,665
Basic earnings per share	$ 0.31	$ 0.33
Diluted earnings per share	$ 0.29	$ 0.30

Earnings Per Share - Dilutive e

Earnings Per Share - Dilutive effects of share based awards (Details) - shares shares in Thousands	3 Months Ended
	Mar. 28, 2019	Mar. 29, 2018
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)	986	98