Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 28, 2014 | Nov. 04, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 28-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'SFM | ' |
Entity Registrant Name | 'SPROUTS FARMERS MARKET, INC. | ' |
Entity Central Index Key | '0001575515 | ' |
Current Fiscal Year End Date | '--12-28 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 150,951,436 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $118,447 | $77,652 |
Accounts receivable, net | 14,077 | 9,524 |
Inventories | 140,104 | 118,256 |
Prepaid expenses and other current assets | 6,406 | 8,049 |
Deferred income tax asset | 8,775 | 18,146 |
Total current assets | 287,809 | 231,627 |
Property and equipment, net of accumulated depreciation | 416,916 | 348,830 |
Intangible assets, net of accumulated amortization | 194,499 | 195,467 |
Goodwill | 368,078 | 368,078 |
Other assets | 18,210 | 13,135 |
Deferred income tax asset | 11,571 | 15,267 |
Total assets | 1,297,083 | 1,172,404 |
Current liabilities: | ' | ' |
Accounts payable | 122,752 | 111,159 |
Accrued salaries and benefits | 25,661 | 22,287 |
Income taxes payable | 4,133 | ' |
Other accrued liabilities | 34,640 | 32,958 |
Current portion of capital and financing lease obligations | 3,995 | 3,395 |
Current portion of long-term debt | 6,008 | 5,822 |
Total current liabilities | 197,189 | 175,621 |
Long-term capital and financing lease obligations | 122,654 | 116,177 |
Long-term debt | 251,848 | 305,418 |
Other long-term liabilities | 74,832 | 61,417 |
Total liabilities | 646,523 | 658,633 |
Commitments and contingencies (Note 10) | ' | ' |
Stockholders' equity: | ' | ' |
Undesignated preferred stock; $0.001 par value; 10,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value; 200,000,000 shares authorized, 150,643,564 and 147,616,560 shares issued and outstanding, September 28, 2014 and December 29, 2013, respectively | 150 | 147 |
Additional paid-in capital | 525,964 | 479,127 |
Retained earnings | 124,446 | 34,497 |
Total stockholders' equity | 650,560 | 513,771 |
Total liabilities and stockholders' equity | $1,297,083 | $1,172,404 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Sep. 28, 2014 | Dec. 29, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Undesignated preferred stock, par value | $0.00 | $0.00 |
Undesignated preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Undesignated preferred stock, shares issued | 0 | 0 |
Undesignated preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 150,643,564 | 147,616,560 |
Common stock, shares outstanding | 150,643,564 | 147,616,560 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 28, 2014 | Sep. 29, 2013 | Sep. 28, 2014 | Sep. 29, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net sales | $766,415 | $633,614 | $2,232,831 | $1,829,675 |
Cost of sales, buying and occupancy | 540,367 | 443,509 | 1,558,876 | 1,278,623 |
Gross profit | 226,048 | 190,105 | 673,955 | 551,052 |
Direct store expenses | 148,633 | 129,418 | 430,019 | 367,064 |
Selling, general and administrative expenses | 24,015 | 22,807 | 69,594 | 60,259 |
Store pre-opening costs | 3,684 | 1,237 | 7,051 | 5,254 |
Store closure and exit costs | 60 | -38 | 393 | 1,670 |
Income from operations | 49,656 | 36,681 | 166,898 | 116,805 |
Interest expense | -6,157 | -8,790 | -19,144 | -30,346 |
Other income | 281 | 203 | 477 | 447 |
Loss on extinguishment of debt | -1,138 | -9,507 | -1,138 | -17,682 |
Income before income taxes | 42,642 | 18,587 | 147,093 | 69,224 |
Income tax provision | -16,577 | -7,126 | -57,144 | -27,178 |
Net income | $26,065 | $11,461 | $89,949 | $42,046 |
Net income per share: | ' | ' | ' | ' |
Basic | $0.17 | $0.08 | $0.60 | $0.32 |
Diluted | $0.17 | $0.08 | $0.58 | $0.31 |
Weighted average shares outstanding: | ' | ' | ' | ' |
Basic | 150,241 | 139,687 | 149,227 | 130,538 |
Diluted | 154,306 | 144,710 | 153,879 | 134,529 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (Unaudited) (USD $) | Total | Common Stock [Member] | Additional Paid In Capital [Member] | (Accumulated Deficit) / Retained Earnings [Member] |
In Thousands, except Share data | ||||
Beginning Balance at Dec. 30, 2012 | $386,755 | $126 | $395,480 | ($8,851) |
Beginning Balance, Shares at Dec. 30, 2012 | ' | 125,956,721 | ' | ' |
Net income | 51,326 | ' | ' | 51,326 |
Issuance of shares under option plans | 3,821 | 1 | 3,820 | ' |
Issuance of shares under option plans, Shares | ' | 1,194,999 | ' | ' |
Issuance of shares in IPO, net of issuance costs | 344,324 | 20 | 344,304 | ' |
Issuance of shares in IPO, net of issuance costs, Shares | ' | 20,477,215 | ' | ' |
Repurchase of shares | -113 | ' | -113 | ' |
Repurchase of shares, Shares | ' | -12,375 | ' | ' |
Dividend paid to stockholders | -282,029 | ' | -274,051 | -7,978 |
Antidilution payments made to optionholders | -13,892 | ' | -13,892 | ' |
Excess income tax benefit for exercise of options | 13,424 | ' | 13,424 | ' |
Tax benefit of antidilution payments made to optionholders | 4,402 | ' | 4,402 | ' |
Tax effect of forfeiture of vested options in equity | -27 | ' | -27 | ' |
Equity-based compensation | 5,780 | ' | 5,780 | ' |
Ending Balance at Dec. 29, 2013 | 513,771 | 147 | 479,127 | 34,497 |
Ending Balance, Shares at Dec. 29, 2013 | ' | 147,616,560 | ' | ' |
Net income | 89,949 | ' | ' | 89,949 |
Issuance of shares under option plans | 7,605 | 3 | 7,602 | ' |
Issuance of shares under option plans, Shares | ' | 3,027,004 | ' | ' |
Excess income tax benefit for exercise of options | 35,041 | ' | 35,041 | ' |
Equity-based compensation | 4,194 | ' | 4,194 | ' |
Ending Balance at Sep. 28, 2014 | $650,560 | $150 | $525,964 | $124,446 |
Ending Balance, Shares at Sep. 28, 2014 | ' | 150,643,564 | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 28, 2014 | Sep. 29, 2013 |
Cash flows from operating activities | ' | ' |
Net income | $89,949 | $42,046 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization expense | 40,586 | 34,860 |
Accretion of asset retirement obligation and closed store reserve | 755 | 84 |
Amortization of financing fees and debt issuance costs | 1,152 | 2,041 |
Loss on disposal of property and equipment | 1,038 | 437 |
Gain on sale of intangible assets | ' | -19 |
Equity-based compensation | 4,194 | 4,285 |
Non-cash loss on extinguishment of debt | 1,138 | 17,474 |
Deferred income taxes | 13,067 | 20,070 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -4,654 | -721 |
Inventories | -21,848 | -16,383 |
Prepaid expenses and other current assets | 1,617 | -9,752 |
Other assets | -5,474 | -3,875 |
Accounts payable | 7,094 | 39,808 |
Accrued salaries and benefits | 3,374 | -469 |
Other accrued liabilities and income taxes payable | 5,814 | -1,359 |
Other long-term liabilities | 13,499 | 9,777 |
Net cash provided by operating activities | 151,301 | 138,304 |
Cash flows from investing activities | ' | ' |
Purchases of property and equipment | -96,099 | -74,777 |
Proceeds from sale of intangible assets | ' | 172 |
Proceeds from sale of property and equipment | 232 | 2 |
Net cash used in investing activities | -95,867 | -74,603 |
Cash flows from financing activities | ' | ' |
Borrowing on term loan, net of financing costs | ' | 688,127 |
Payments on term loan | -55,250 | -745,100 |
Payments on senior subordinated notes | ' | -35,000 |
Payments on capital lease obligations | -426 | -335 |
Payments on financing lease obligations | -2,186 | -2,104 |
Payments of deferred financing costs | ' | -1,370 |
Payments of IPO costs | ' | -4,212 |
Cash from landlord related to financing lease obligations | 577 | 4,057 |
Payments to stockholders and option holders | ' | -295,921 |
Repurchase of shares | ' | -113 |
Excess tax benefit for exercise of stock options and antidilution payment to optionholders | 35,041 | 4,402 |
Proceeds from the exercise of stock options | 7,605 | 75 |
Proceeds from the issuance of shares | ' | 348,317 |
Net cash used in financing activities | -14,639 | -39,177 |
Net increase in cash and cash equivalents | 40,795 | 24,524 |
Cash and cash equivalents at beginning of the period | 77,652 | 67,211 |
Cash and cash equivalents at the end of the period | 118,447 | 91,735 |
Supplemental disclosure of cash flow information | ' | ' |
Cash paid for interest | 18,164 | 31,529 |
Cash paid for income taxes | 3,982 | 1,276 |
Supplemental disclosure of non-cash investing and financing activities | ' | ' |
Property and equipment in accounts payable | 12,156 | 6,332 |
Property acquired through capital and financing lease obligations | $9,113 | $10,986 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 28, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
1. Basis of Presentation | |
Sprouts Farmers Market, Inc., a Delaware corporation, through its subsidiaries, operates as a healthy grocery store that offers fresh, natural and organic food that includes fresh produce, bulk foods, vitamins and supplements, grocery, meat and seafood, bakery, dairy, frozen foods, body care and natural household items catering to consumers’ growing interest in eating and living healthier. The “Company” is used to refer collectively to Sprouts Farmers Market, Inc. and its subsidiaries. | |
The accompanying unaudited consolidated financial statements include the accounts of the Company in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and are in the form prescribed by the Securities and Exchange Commission in instructions to Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, considered necessary for a fair statement of the Company’s financial position, results of operations and cash flows for the periods indicated. All material intercompany accounts and transactions have been eliminated in consolidation. Interim results are not necessarily indicative of results for any other interim period or for a full fiscal year. The information included in these consolidated financial statements and notes thereto should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations included herein and Management’s Discussion and Analysis of Financial Condition and Results of Operations and the consolidated financial statements and notes thereto for the fiscal year ended December 29, 2013 included in the Company’s Annual Report on Form 10-K, filed on February 27, 2014. | |
The year-end balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. | |
The Company reports its results of operations on a 52- or 53-week fiscal calendar ending on the Sunday closest to December 31. Fiscal years 2014 and 2013 are 52-week years. The Company reports its results of operations on a 13-week quarter, except for 53-week fiscal years. | |
The Company has revised its Statement of Cash Flows for the thirty-nine weeks ended September 29, 2013, to present cash inflows related to excess tax benefits from antidilution payments made to optionholders as cash flows from financing activities. This revision did not have a material impact on previously reported consolidated cash flows. Additionally, for the thirty-nine weeks ended September 28, 2014, and for the comparative period, the Company has offset the changes in balance sheet line items related to excess tax benefit with the excess tax benefit. | |
On August 6, 2013, the Company completed its initial public offering (“IPO”) of 21,275,000 shares of common stock at a price of $18.00 per share. The Company sold 20,477,215 shares of common stock, and certain stockholders sold the remaining 797,785 shares. The Company received net proceeds from the IPO of $344.1 million, after deducting underwriting discounts and offering expenses. See Note 11, “Stockholders’ Equity” for more information. | |
The Company has one reportable and one operating segment. | |
The Company’s business is subject to modest seasonality. Average weekly sales fluctuate throughout the year and are typically highest in the first half of the fiscal year. Produce, which contributed 26% of the Company’s net sales for the thirty-nine weeks ended September 28, 2014, is generally more available in the first six months of the fiscal year due to the timing of peak growing seasons. | |
All dollar amounts are in thousands, unless otherwise noted. |
Recently_Issued_Accounting_Pro
Recently Issued Accounting Pronouncements | 9 Months Ended |
Sep. 28, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
Recently Issued Accounting Pronouncements | ' |
2. Recently Issued Accounting Pronouncements | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-04, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date (a consensus of the FASB Emerging Issues Task Force),” which amends Accounting Standards Codification (“ASC”) 405, “Liabilities.” The amendments provide guidance on the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements, including debt arrangements, other contractual obligations, and settled litigation and judicial rulings, for which the total amount of the obligation is fixed at the reporting date. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 and should be applied retrospectively. The provisions were effective from the Company’s first quarter of 2014. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements. | |
In July 2013, the FASB issued ASU No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,” which amends ASC 740, “Income Taxes.” ASU No. 2013-11 requires that unrecognized tax benefits be classified as an offset to deferred tax assets to the extent of any net operating loss carryforwards, similar tax loss carryforwards, or tax credit carryforwards are available at the reporting date in the applicable tax jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position. An exception would apply if the tax law of the tax jurisdiction does not require the Company to use, and it does not intend to use, the deferred tax asset for such purpose. This guidance is effective for reporting periods beginning after December 15, 2013. The provisions were effective from the Company’s first quarter of 2014. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements. | |
In April 2014, the FASB issued ASU No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU No. 2014-08 amends previous guidance related to the criteria for reporting a disposal as a discontinued operation by elevating the threshold for qualification for discontinued operations treatment to a disposal that represents a strategic shift that has a major effect on an organization’s operations or financials results. This guidance also requires expanded disclosures for transactions that qualify as a discontinued operation and requires disclosure of individually significant components that are disposed of or held for sale but do not qualify for discontinued operations reporting. This guidance is effective prospectively for all disposals or components initially classified as held for sale in periods beginning on or after December 15, 2014, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material effect on its consolidated financial statements. | |
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers.” ASU No. 2014-09 provides guidance for revenue recognition. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under current guidance. These may include identifying performance obligations in the contract, and estimating the amount of variable consideration to include in the transaction price attributable to each separate performance obligation. This guidance will be effective for the Company for its fiscal year 2017. The Company is currently evaluating the potential impact of this guidance. | |
In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” ASU No. 2014-15 requires management to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures in certain circumstances. This guidance will be effective for the Company for its fiscal year 2017, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material effect on its consolidated financial statements. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 28, 2014 | |
Fair Value Disclosures [Abstract] | ' |
Fair Value Measurements | ' |
3. Fair Value Measurements | |
The Company records its financial assets and liabilities in accordance with the framework for measuring fair value in accordance with GAAP. This framework establishes a fair value hierarchy that prioritizes the inputs used to measure fair value: | |
Level 1: Quoted prices for identical instruments in active markets. | |
Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. | |
Level 3: Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | |
Fair value measurements of nonfinancial assets and nonfinancial liabilities are primarily used in the impairment analysis of goodwill, indefinite-lived intangible assets, long-lived assets and in the valuation of store closure and exit costs. | |
The determination of fair values of certain tangible and intangible assets for purposes of the Company’s goodwill impairment evaluation as described above was based upon a step zero assessment. Closed store reserves are recorded at net present value to approximate fair value which is classified as Level 3 in the hierarchy. The estimated fair value of the closed store reserve is calculated based on the present value of the remaining lease payments and other charges using a weighted average cost of capital, reduced by estimated sublease rentals. The weighted average cost of capital was estimated using information from comparable companies and management’s judgment related to the risk associated with the operations of the stores. | |
Cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued salaries and benefits and other accrued liabilities approximate fair value because of the short maturity of those instruments. Based on open market transactions comparable to the Term Loan (as defined in Note 6, “Long-Term Debt”), the fair value of the long-term debt, including current maturities, approximates carrying value as of September 28, 2014 and December 29, 2013. The Company’s estimates of the fair value of long-term debt (including current maturities) were classified as Level 2 in the fair value hierarchy. |
Accounts_Receivable
Accounts Receivable | 9 Months Ended | ||||||||
Sep. 28, 2014 | |||||||||
Receivables [Abstract] | ' | ||||||||
Accounts Receivable | ' | ||||||||
4. Accounts Receivable | |||||||||
A summary of accounts receivable is as follows: | |||||||||
As Of | |||||||||
September 28, | December 29, | ||||||||
2014 | 2013 | ||||||||
Vendor | $ | 8,731 | $ | 5,183 | |||||
Receivables from landlords | 3,094 | 1,034 | |||||||
Medical insurance receivables | 37 | 1,089 | |||||||
Other | 2,215 | 2,218 | |||||||
Total | $ | 14,077 | $ | 9,524 | |||||
Medical insurance receivables relate to amounts receivable from the Company’s health insurance carrier for claims in excess of stop-loss limits. | |||||||||
The Company had recorded allowances for certain vendor receivables of $0.1 million and $0.3 million at September 28, 2014 and December 29, 2013, respectively. |
Accrued_Salaries_and_Benefits
Accrued Salaries and Benefits | 9 Months Ended | ||||||||
Sep. 28, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accrued Salaries and Benefits | ' | ||||||||
5. Accrued Salaries and Benefits | |||||||||
A summary of accrued salaries and benefits is as follows: | |||||||||
As Of | |||||||||
September 28, | December 29, | ||||||||
2014 | 2013 | ||||||||
Bonuses | $ | 10,074 | $ | 8,393 | |||||
Accrued payroll | 7,718 | 6,904 | |||||||
Vacation | 7,363 | 6,634 | |||||||
Other | 506 | 356 | |||||||
Total | $ | 25,661 | $ | 22,287 | |||||
LongTerm_Debt
Long-Term Debt | 9 Months Ended | ||||||||||||||||
Sep. 28, 2014 | |||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||
Long-Term Debt | ' | ||||||||||||||||
6. Long-Term Debt | |||||||||||||||||
A summary of long-term debt is as follows: | |||||||||||||||||
Maturity | Interest Rate | As Of | |||||||||||||||
Facility | September 28, | December 29, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
Senior Secured | |||||||||||||||||
Term Loan, net of original issue discount | April 2020 | Variable | $ | 257,856 | $ | 311,240 | |||||||||||
$60.0 million Revolving Credit Facility | April 2018 | Variable | — | — | |||||||||||||
Total debt | 257,856 | 311,240 | |||||||||||||||
Less current portion | (6,008 | ) | (5,822 | ) | |||||||||||||
Long-term debt, net of current portion | $ | 251,848 | $ | 305,418 | |||||||||||||
Current portion of long-term debt is presented net of issue discount of $1.0 million and $1.2 million as of September 28, 2014 and December 29, 2013, respectively. The non-current portion of long-term debt is presented net of issue discount of $4.2 million and $5.8 million as of September 28, 2014 and December 29, 2013, respectively. | |||||||||||||||||
Senior Secured Credit Facilities | |||||||||||||||||
April 2013 Refinancing | |||||||||||||||||
On April 23, 2013, the Company’s subsidiary, Sprouts Farmers Markets Holdings, LLC (“Intermediate Holdings”), as borrower, refinanced (the “April 2013 Refinancing”) its former revolving credit facility and former term loan, by entering into a new credit facility (the “Credit Facility”). The Credit Facility provides for a $700.0 million term loan (the “Term Loan”) and a $60.0 million senior secured revolving credit facility (the “Revolving Credit Facility”). | |||||||||||||||||
The terms of the Credit Facility allow the Company, subject to certain conditions, to increase the amount of the term loans and revolving commitments thereunder by an aggregate incremental amount of up to $160.0 million, plus an additional amount, so long as after giving effect to such increase, (i) in the case of incremental loans that rank pari passu with the initial term loans, the net first lien leverage ratio does not exceed 4.00 to 1.00, and (ii) in the case of incremental loans that rank junior to the initial Term Loan, the total leverage ratio does not exceed 5.25 to 1.00. | |||||||||||||||||
Guarantees | |||||||||||||||||
Obligations under the Credit Facility are guaranteed by the Company and all of its current and future wholly owned material domestic subsidiaries. Borrowings under the Credit Facility are secured by (i) a pledge by Sprouts of its equity interests in Intermediate Holdings and (ii) first-priority liens on substantially all assets of Intermediate Holdings and the subsidiary guarantors, in each case, subject to permitted liens and certain exceptions. | |||||||||||||||||
Interest and Applicable Margin | |||||||||||||||||
All amounts outstanding under the Credit Facility will bear interest, at the Company’s option, at a rate per annum equal to LIBOR (with a 1.00% floor with respect to Eurodollar borrowings under the Term Loan), adjusted for statutory reserves, plus a margin equal to 3.00%, or an alternate base rate, plus a margin equal to 2.00%, as set forth in the Credit Facility. These interest margins were reduced to their current levels (from 3.50% and 2.50%, respectively) effective August 2, 2013, as a result of (i) the consummation of the Company’s IPO, and (ii) the Company achieving a reduction in the net first lien leverage ratio to less than or equal to 2.75 to 1.00. | |||||||||||||||||
Payments and Prepayments | |||||||||||||||||
On August 14, 2014 the Company made a $50.0 million voluntary principal payment on the Term Loan. Such payment resulted in a $1.1 million loss on extinguishment of debt due to the write-off of deferred financing costs and original issue discount for the portion of the debt repaid. This loss on extinguishment of debt is reflected in the Company’s statements of operations for the thirteen and thirty-nine weeks ended September 28, 2014. | |||||||||||||||||
The Term Loan will mature in April 2020 and will amortize at a rate per annum, in four equal quarterly installments, in an aggregate amount equal to 1.00% of the original principal balance, with the balance due on the maturity date. | |||||||||||||||||
Subject to exceptions set forth therein, the Credit Facility requires mandatory prepayments in amounts equal to (i) 50% (reduced to 25% if net first lien leverage is less than 3.00 to 1.00 but greater than 2.50 to 1.00 and 0% if net first lien leverage is less than 2.50 to 1.00) of excess cash flow (as defined in the Credit Facility) at the end of each fiscal year, (ii) 100% of the net cash proceeds from certain non-ordinary course asset sales by the Company or any subsidiary guarantor (subject to certain exceptions and reinvestment provisions) and (iii) 100% of the net cash proceeds from the issuance or incurrence of debt by the Company or any of its subsidiaries not permitted under the Credit Facility. | |||||||||||||||||
Voluntary prepayments of borrowings under the Credit Facility are permitted at any time, in agreed-upon minimum principal amounts. Prepayments will not be subject to premium or penalty (except LIBOR breakage costs, if applicable). | |||||||||||||||||
Revolving Credit Facility | |||||||||||||||||
The Credit Facility includes a $60.0 million Revolving Credit Facility which matures in April 2018. The Revolving Credit Facility includes letter of credit and $5.0 million swingline loan subfacilities. Letters of credit issued under the facility reduce the borrowing capacity on the total facility. There are no amounts outstanding on the Revolving Credit Facility at September 28, 2014. Letters of credit totaling $7.4 million have been issued as of September 28, 2014 primarily to support the Company’s insurance programs. Amounts available under the Revolving Credit Facility at September 28, 2014 totaled $52.6 million. | |||||||||||||||||
Interest terms on the Revolving Credit Facility are the same as the Term Loan. | |||||||||||||||||
The Company capitalized debt issuance costs of $1.1 million related to the Revolving Credit Facility, which are being amortized to interest expense over the term of the Revolving Credit Facility. | |||||||||||||||||
Under the terms of the Credit Facility, the Company is obligated to pay a commitment fee on the available unused amount of the Revolving Credit Facility commitments equal to 0.50% per annum. | |||||||||||||||||
Covenants | |||||||||||||||||
The Credit Facility contains financial, affirmative and negative covenants. The negative covenants include, among other things, limitations on the Company’s ability to: | |||||||||||||||||
• | incur additional indebtedness; | ||||||||||||||||
• | grant additional liens; | ||||||||||||||||
• | enter into sale-leaseback transactions; | ||||||||||||||||
• | make loans or investments; | ||||||||||||||||
• | merge, consolidate or enter into acquisitions; | ||||||||||||||||
• | pay dividends or distributions; | ||||||||||||||||
• | enter into transactions with affiliates; | ||||||||||||||||
• | enter into new lines of business; | ||||||||||||||||
• | modify the terms of subordinated debt or other material agreements; and | ||||||||||||||||
• | change its fiscal year | ||||||||||||||||
Each of these covenants is subject to customary or agreed-upon exceptions, baskets and thresholds. | |||||||||||||||||
In addition, if the Company has any amounts outstanding under the Revolving Credit Facility as of the last day of any fiscal quarter, the Revolving Credit Facility requires the borrower to maintain a ratio of Revolving Facility Credit exposure to consolidated trailing 12-month EBITDA (as defined in the Credit Facility) of no more than 0.75 to 1.00 as of the end of each such fiscal quarter. | |||||||||||||||||
The Company was in compliance with all applicable covenants under the Credit Facility as of September 28, 2014. |
Closed_Store_Reserves
Closed Store Reserves | 9 Months Ended | ||||||||
Sep. 28, 2014 | |||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||
Closed Store Reserves | ' | ||||||||
7. Closed Store Reserves | |||||||||
The following is a summary of closed store reserve activity during the thirty-nine weeks ended September 28, 2014 and fiscal year ended December 29, 2013: | |||||||||
September 28, | December 29, | ||||||||
2014 | 2013 | ||||||||
Beginning balance | $ | 4,713 | $ | 5,243 | |||||
Additions | 688 | 363 | |||||||
Usage | (1,407 | ) | (1,728 | ) | |||||
Adjustments | (586 | ) | 835 | ||||||
Ending balance | $ | 3,408 | $ | 4,713 | |||||
Additions made during 2014 relate to the closure and relocation of one store and to the closure and relocation of the Texas warehouse, and usage during 2014 relates to lease payments made during the period for closed stores. Adjustments made during 2014 include a $0.4 million favorable reserve adjustment due to a sublease for the Sunflower administrative office and a $1.2 million favorable reserve adjustment for one store due to settlement with the landlord recorded during the thirteen weeks ended September 28, 2014. Also during the thirteen weeks ended September 28, 2014, the Company determined that it should have been recording accretion expense for store closure reserves and liability for certain occupancy costs. The Company made a correcting entry of $0.9 million to adjust the liability for closed stores to include such accretion and liability for certain occupancy costs for prior periods. The effect of this error on the Company’s financial statements was not material to any period. Activity during 2013 includes charges related to the closure of a former Sunflower warehouse, lease payments made during the period for closed stores and adjustments to sublease estimates for stores and facilities already closed. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 28, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
8. Income Taxes | |
The Company’s effective tax rate for the thirteen weeks ended September 28, 2014 and September 29, 2013 was 38.9% and 38.3%, respectively. The primary reasons for the increase in the effective tax rate were the result of a reduction in the net deferred tax asset because of a decrease in the statutory state income tax rate and a reduction in the deferred tax asset for income tax credits partially offset by provision to tax return adjustments for the 2013 income tax return. The impacts of the items noted above were recorded in the quarter. | |
The Company’s effective tax rate for the thirty-nine weeks ended September 28, 2014 and September 29, 2013 was 38.9% and 39.3%, respectively. The decrease in the effective tax rate was the result of an increase in the enhanced charitable food contribution. | |
In September 2013, the Internal Revenue Service issued final regulations related to tangible property, which govern when a taxpayer must capitalize or deduct expenses for acquiring, maintaining, repairing and replacing tangible property. The regulations are effective for tax years beginning January 1, 2014, however early adoption is permitted. The Company has analyzed the impacts of the tangible property regulations, and has determined it is in compliance with the regulations. The adoption of the regulations has not had a material effect on the Company’s consolidated financial statements. | |
Excess tax benefits associated with stock option exercises are credited to stockholders’ equity. The Company uses the tax law ordering approach of intraperiod allocation to allocate the benefit of windfall tax benefits based on provisions in the tax law that identify the sequence in which those amounts are utilized for tax purposes. The income tax benefits resulting from stock awards that were credited to stockholders’ equity were $35.0 million for the thirty-nine weeks ended September 28, 2014, which included $1.5 million of income tax benefits related to stock award activity in 2013. The income tax benefits resulting from antidilution payments that were credited to stockholders’ equity were $4.4 million for the thirty-nine weeks ended September 29, 2013. The excess tax benefits are not credited to stockholders’ equity until the deduction reduces income taxes payable. |
RelatedParty_Transactions
Related-Party Transactions | 9 Months Ended |
Sep. 28, 2014 | |
Related Party Transactions [Abstract] | ' |
Related-Party Transactions | ' |
9. Related-Party Transactions | |
Two stockholders, including a member of the Company’s board of directors, are investors in a company that is a supplier of coffee to the Company. During the thirteen weeks ended September 28, 2014 and September 29, 2013, purchases from this company were $2.0 million and $1.7 million, respectively. During the thirty-nine weeks ended September 28, 2014 and September 29, 2013, purchases from this company were $5.8 million and $5.6 million, respectively. At both September 28, 2014 and September 29, 2013, the Company had recorded accounts payable due to this vendor of $0.6 million. | |
The Company was party to a services agreement (the “Services Agreement”) with an outsourced service provider who is a stockholder of the Company, to perform certain of the Company’s bookkeeping services including general ledger maintenance, accounts payable processing and cash management. The Services Agreement provides for successive one-year terms unless either party provides six months’ termination notice. During the thirteen weeks ended September 28, 2014 and September 29, 2013, fees and other expenses paid to the service provider under the terms of the Services Agreement were $0.1 million and $0.6 million, respectively. During the thirty-nine weeks ended September 28, 2014 and September 29, 2013, fees and other expenses paid to the service provider under the terms of the Services Agreement were $1.0 million and $1.8 million, respectively. The Services Agreement expired in accordance with its terms on September 1, 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 28, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
10. Commitments and Contingencies | |
The Company is exposed to claims and litigation matters arising in the ordinary course of business and uses various methods to resolve these matters that are believed to best serve the interests of the Company’s stakeholders. The Company’s primary contingencies are associated with self-insurance obligations. Self-insurance liabilities require significant judgment and actual claim settlements and associated expenses may differ from the Company’s current provisions for loss. |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended |
Sep. 28, 2014 | |
Equity [Abstract] | ' |
Stockholders' Equity | ' |
11. Stockholders’ Equity | |
Secondary Offerings | |
On April 2, 2014, certain of the Company’s stockholders completed a secondary public offering of 17,250,000 shares of common stock, which included 1.6 million options exercised and sold by certain of the Company’s option holders (the “April Secondary Offering”). On August 18, 2014, certain of the Company’s stockholders completed a secondary public offering of 17,158,191 shares of common stock, which included 0.7 million options exercised and sold by certain of the Company’s option holders (the “August Secondary Offering”). See Note 13, “Equity-Based Compensation” for more details on the option exercises in the April Secondary Offering and the August Secondary Offering. The Company did not sell any shares in either the April Secondary Offering or the August Secondary Offering. | |
Initial Public Offering | |
On August 6, 2013, the Company completed its IPO of 21,275,000 shares of common stock at a price of $18.00 per share. The Company sold 20,477,215 shares of common stock, and certain stockholders sold the remaining 797,785 shares. The Company received gross proceeds from the IPO of approximately $368.6 million, or $344.1 million after deducting underwriting discounts and offering expenses of $24.5 million. The Company did not receive any proceeds from the sale of shares by the selling stockholders. On August 6, 2013, the Company used $340.0 million of the net proceeds from its IPO to make a partial repayment of the Term Loan. | |
Distribution to Stockholders | |
On April 24, 2013, the Company paid a total distribution of $282.0 million to stockholders. Additionally, pursuant to the anti-dilution provisions of the 2011 Option Plan (as defined in Note 13 “Equity-Based Compensation” below), the Company paid $13.9 million to certain vested option holders and reduced the exercise price of unvested and certain vested options. | |
The payment was made first from retained earnings to date as of the payment date, and payment in excess of retained earnings was made from additional paid-in capital. |
Net_Income_Per_Share
Net Income Per Share | 9 Months Ended | ||||||||||||||||
Sep. 28, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Net Income Per Share | ' | ||||||||||||||||
12. Net Income Per Share | |||||||||||||||||
The computation of net income per share is based on the number of weighted average shares outstanding during the period. The computation of diluted net income per share includes the dilutive effect of share equivalents consisting of incremental shares deemed outstanding from the assumed exercise of options and assumed vesting of restricted stock units (“RSUs”). | |||||||||||||||||
A reconciliation of the numerators and denominators of the basic and diluted net income per share calculations is as follows (in thousands, except per share amounts): | |||||||||||||||||
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Basic net income per share: | |||||||||||||||||
Net income | $ | 26,065 | $ | 11,461 | $ | 89,949 | $ | 42,046 | |||||||||
Weighted average shares outstanding | 150,241 | 139,687 | 149,227 | 130,538 | |||||||||||||
Basic net income per share | $ | 0.17 | $ | 0.08 | $ | 0.6 | $ | 0.32 | |||||||||
Diluted net income per share: | |||||||||||||||||
Net income | $ | 26,065 | $ | 11,461 | $ | 89,949 | $ | 42,046 | |||||||||
Weighted average shares outstanding | 150,241 | 139,687 | 149,227 | 130,538 | |||||||||||||
Dilutive effect of equity-based awards: | |||||||||||||||||
Assumed exercise of options to purchase shares | 4,065 | 5,023 | 4,652 | 3,991 | |||||||||||||
Weighted average shares and equivalent shares outstanding | 154,306 | 144,710 | 153,879 | 134,529 | |||||||||||||
Diluted net income per share | $ | 0.17 | $ | 0.08 | $ | 0.58 | $ | 0.31 | |||||||||
For the thirteen weeks ended September 28, 2014 the computation of diluted net income per share does not include 1.0 million options as those options would have been antidilutive or were unvested performance-based options. For the thirteen weeks ended September 29, 2013, the computation of diluted net income per share does not include 2.6 million options, as those options would have been antidilutive or were unvested performance-based options. | |||||||||||||||||
For the thirty-nine weeks ended September 28, 2014 the computation of diluted net income per share does not include 1.0 million options as those options would have been antidilutive or were unvested performance-based options. For the thirty-nine weeks ended September 29, 2013, the computation of diluted net income per share does not include 4.5 million options, as those options would have been antidilutive or were unvested performance-based options. |
EquityBased_Compensation
Equity-Based Compensation | 9 Months Ended | ||||||||||||||||
Sep. 28, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Equity-Based Compensation | ' | ||||||||||||||||
13. Equity-Based Compensation | |||||||||||||||||
2013 Incentive Plan | |||||||||||||||||
The Company’s board of directors adopted, and its equity holders approved, the Sprouts Farmers Market, Inc. 2013 Incentive Plan (the “2013 Incentive Plan”). The 2013 Incentive Plan became effective July 31, 2013 in connection with the Company’s IPO and replaced the Sprouts Farmers Markets, LLC Option Plan (the “2011 Option Plan”) (except with respect to outstanding options to acquire shares under the 2011 Option Plan). The 2013 Incentive Plan and 2011 Option Plan are collectively referred to as the “Option Plans”. The 2013 Incentive Plan serves as the umbrella plan for the Company’s stock-based and cash-based incentive compensation programs for its directors, officers and other team members. | |||||||||||||||||
Under the 2013 Incentive Plan, effective July 31, 2013 upon the pricing of the Company’s IPO, the Company granted officers and team members options to purchase 396,000 shares of common stock at an exercise price of $18.00 per share, with grant date fair values of $4.65 to $5.92. The Company also granted to independent directors options to purchase 11,112 shares of common stock at an exercise price of $18.00 per share, with grant date fair values of $4.65. | |||||||||||||||||
On March 4, 2014, under the 2013 Incentive Plan, the Company granted to certain officers and team members time-based options to purchase an aggregate of 320,041 shares of common stock at an exercise price of $39.01 per share, with a grant date fair value of $10.66 per share. The Company also granted an aggregate of 108,980 RSUs with a grant date fair value of $39.01. | |||||||||||||||||
On May 19, 2014, under the 2013 Incentive Plan, the Company granted to a team member and to independent members of the Company’s board of directors time-based options to purchase an aggregate of 37,047 shares of common stock at an exercise price of $28.50 per share, with a grant date fair value of $8.07. The Company also granted to this team member 2,174 RSUs with a grant date fair value of $28.50 per share. | |||||||||||||||||
The aggregate number of shares of common stock that may be issued to team members and directors under the 2013 Incentive Plan may not exceed 10,089,072. Shares subject to awards granted under the 2013 Incentive Plan which are subsequently forfeited, expire unexercised or are otherwise not issued will not be treated as having been issued for purposes of the share limitation. | |||||||||||||||||
2011 Option Plan | |||||||||||||||||
In May 2011, the Company adopted the 2011 Option Plan to provide team members or directors of the Company with options to acquire shares of the Company. The Company had authorized 12,100,000 shares for issuance under the 2011 Option Plan. Options may no longer be issued under the 2011 Option Plan. | |||||||||||||||||
During the thirty-nine weeks ended September 29, 2013, the Company awarded 209,000 options to employees under the 2011 Option Plan at exercise prices of $9.15 and grant date fair values of $2.33 to $3.10. | |||||||||||||||||
Options | |||||||||||||||||
The Company uses the Black-Scholes option pricing model to estimate the fair value of options at grant date. Options vest in accordance with the terms set forth in the grant letter and vary depending on if they are time-based or performance-based. | |||||||||||||||||
Time-based options generally vest ratably over a period of 12 quarters (three years) and performance-based options vest over a period of three years based on financial performance targets set for each year. | |||||||||||||||||
RSUs | |||||||||||||||||
The fair value of RSUs is based on the closing price of the Company’s common stock on the grant date. RSUs generally vest annually over a period of two or three years from the grant date. | |||||||||||||||||
Equity-based Compensation Expense | |||||||||||||||||
Equity-based compensation expense was reflected in the consolidated statements of operations as follows: | |||||||||||||||||
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Cost of sales, buying and occupancy | $ | 152 | $ | 164 | $ | 546 | $ | 481 | |||||||||
Direct store expenses | 215 | 22 | 580 | 81 | |||||||||||||
Selling, general and administrative expenses | 832 | 1,433 | 3,068 | 3,723 | |||||||||||||
Equity-based compensation expense before income taxes | 1,199 | 1,619 | 4,194 | 4,285 | |||||||||||||
Income tax benefit | (480 | ) | (620 | ) | (1,678 | ) | (1,684 | ) | |||||||||
Net equity-based compensation expense | $ | 719 | $ | 999 | $ | 2,516 | $ | 2,601 | |||||||||
Net equity-based compensation expense for the thirty-nine weeks ended September 29, 2013 included additional expense of $0.5 million related to anti-dilution provision payments made to certain option holders. See Note 11, “Stockholders’ Equity” for more information. As of September 28, 2014 and December 29, 2013, there were approximately 8.1 million and 10.9 million options outstanding and 1.5 million and 2.7 million unvested options outstanding, respectively. | |||||||||||||||||
As of September 28, 2014 and December 29, 2013, there were approximately 0.1 million and no unvested RSUs outstanding, respectively. | |||||||||||||||||
As of September 28, 2014, total unrecognized compensation expense related to outstanding options was $4.4 million which, if the service and performance conditions are fully met, is expected to be recognized over the next 1.1 years on a weighted-average basis. | |||||||||||||||||
As of September 28, 2014, total unrecognized compensation expense related to outstanding RSUs was $3.2 million which, if the service conditions are fully met, is expected to be recognized over the next 2.0 years on a weighted-average basis. | |||||||||||||||||
During the thirty-nine weeks ended September 28, 2014, the Company received $7.6 million in cash proceeds from the exercise of options, including a total of 2.3 million options exercised by current or former team members who sold the underlying shares in the April Secondary Offering and in the August Secondary Offering. | |||||||||||||||||
During the thirty-nine weeks ended September 29, 2013, the Company received $0.1 million in cash proceeds from the exercise of options. |
Recently_Issued_Accounting_Pro1
Recently Issued Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 28, 2014 | |
Fair Value Disclosures [Abstract] | ' |
Recently Issued Accounting Pronouncements | ' |
Recently Issued Accounting Pronouncements | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-04, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date (a consensus of the FASB Emerging Issues Task Force),” which amends Accounting Standards Codification (“ASC”) 405, “Liabilities.” The amendments provide guidance on the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements, including debt arrangements, other contractual obligations, and settled litigation and judicial rulings, for which the total amount of the obligation is fixed at the reporting date. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 and should be applied retrospectively. The provisions were effective from the Company’s first quarter of 2014. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements. | |
In July 2013, the FASB issued ASU No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,” which amends ASC 740, “Income Taxes.” ASU No. 2013-11 requires that unrecognized tax benefits be classified as an offset to deferred tax assets to the extent of any net operating loss carryforwards, similar tax loss carryforwards, or tax credit carryforwards are available at the reporting date in the applicable tax jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position. An exception would apply if the tax law of the tax jurisdiction does not require the Company to use, and it does not intend to use, the deferred tax asset for such purpose. This guidance is effective for reporting periods beginning after December 15, 2013. The provisions were effective from the Company’s first quarter of 2014. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements. | |
In April 2014, the FASB issued ASU No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU No. 2014-08 amends previous guidance related to the criteria for reporting a disposal as a discontinued operation by elevating the threshold for qualification for discontinued operations treatment to a disposal that represents a strategic shift that has a major effect on an organization’s operations or financials results. This guidance also requires expanded disclosures for transactions that qualify as a discontinued operation and requires disclosure of individually significant components that are disposed of or held for sale but do not qualify for discontinued operations reporting. This guidance is effective prospectively for all disposals or components initially classified as held for sale in periods beginning on or after December 15, 2014, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material effect on its consolidated financial statements. | |
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers.” ASU No. 2014-09 provides guidance for revenue recognition. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under current guidance. These may include identifying performance obligations in the contract, and estimating the amount of variable consideration to include in the transaction price attributable to each separate performance obligation. This guidance will be effective for the Company for its fiscal year 2017. The Company is currently evaluating the potential impact of this guidance. | |
In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” ASU No. 2014-15 requires management to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures in certain circumstances. This guidance will be effective for the Company for its fiscal year 2017, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material effect on its consolidated financial statements. | |
Fair Value Measurements | ' |
The Company records its financial assets and liabilities in accordance with the framework for measuring fair value in accordance with GAAP. This framework establishes a fair value hierarchy that prioritizes the inputs used to measure fair value: | |
Level 1: Quoted prices for identical instruments in active markets. | |
Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. | |
Level 3: Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | |
Fair value measurements of nonfinancial assets and nonfinancial liabilities are primarily used in the impairment analysis of goodwill, indefinite-lived intangible assets, long-lived assets and in the valuation of store closure and exit costs. | |
The determination of fair values of certain tangible and intangible assets for purposes of the Company’s goodwill impairment evaluation as described above was based upon a step zero assessment. Closed store reserves are recorded at net present value to approximate fair value which is classified as Level 3 in the hierarchy. The estimated fair value of the closed store reserve is calculated based on the present value of the remaining lease payments and other charges using a weighted average cost of capital, reduced by estimated sublease rentals. The weighted average cost of capital was estimated using information from comparable companies and management’s judgment related to the risk associated with the operations of the stores. | |
Cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued salaries and benefits and other accrued liabilities approximate fair value because of the short maturity of those instruments. Based on open market transactions comparable to the Term Loan (as defined in Note 6, “Long-Term Debt”), the fair value of the long-term debt, including current maturities, approximates carrying value as of September 28, 2014 and December 29, 2013. The Company’s estimates of the fair value of long-term debt (including current maturities) were classified as Level 2 in the fair value hierarchy. | |
Income Taxes | ' |
Excess tax benefits associated with stock option exercises are credited to stockholders’ equity. The Company uses the tax law ordering approach of intraperiod allocation to allocate the benefit of windfall tax benefits based on provisions in the tax law that identify the sequence in which those amounts are utilized for tax purposes. The income tax benefits resulting from stock awards that were credited to stockholders’ equity were $35.0 million for the thirty-nine weeks ended September 28, 2014, which included $1.5 million of income tax benefits related to stock award activity in 2013. The income tax benefits resulting from antidilution payments that were credited to stockholders’ equity were $4.4 million for the thirty-nine weeks ended September 29, 2013. The excess tax benefits are not credited to stockholders’ equity until the deduction reduces income taxes payable.. |
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 9 Months Ended | ||||||||
Sep. 28, 2014 | |||||||||
Receivables [Abstract] | ' | ||||||||
Summary of Accounts Receivable | ' | ||||||||
A summary of accounts receivable is as follows: | |||||||||
As Of | |||||||||
September 28, | December 29, | ||||||||
2014 | 2013 | ||||||||
Vendor | $ | 8,731 | $ | 5,183 | |||||
Receivables from landlords | 3,094 | 1,034 | |||||||
Medical insurance receivables | 37 | 1,089 | |||||||
Other | 2,215 | 2,218 | |||||||
Total | $ | 14,077 | $ | 9,524 | |||||
Accrued_Salaries_and_Benefits_
Accrued Salaries and Benefits (Tables) | 9 Months Ended | ||||||||
Sep. 28, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Summary of Accrued Salaries and Benefits | ' | ||||||||
A summary of accrued salaries and benefits is as follows: | |||||||||
As Of | |||||||||
September 28, | December 29, | ||||||||
2014 | 2013 | ||||||||
Bonuses | $ | 10,074 | $ | 8,393 | |||||
Accrued payroll | 7,718 | 6,904 | |||||||
Vacation | 7,363 | 6,634 | |||||||
Other | 506 | 356 | |||||||
Total | $ | 25,661 | $ | 22,287 | |||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2014 | |||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||
Summary of Long-Term Debt | ' | ||||||||||||||||
A summary of long-term debt is as follows: | |||||||||||||||||
Maturity | Interest Rate | As Of | |||||||||||||||
Facility | September 28, | December 29, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
Senior Secured | |||||||||||||||||
Term Loan, net of original issue discount | April 2020 | Variable | $ | 257,856 | $ | 311,240 | |||||||||||
$60.0 million Revolving Credit Facility | April 2018 | Variable | — | — | |||||||||||||
Total debt | 257,856 | 311,240 | |||||||||||||||
Less current portion | (6,008 | ) | (5,822 | ) | |||||||||||||
Long-term debt, net of current portion | $ | 251,848 | $ | 305,418 | |||||||||||||
Closed_Store_Reserves_Tables
Closed Store Reserves (Tables) | 9 Months Ended | ||||||||
Sep. 28, 2014 | |||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||
Summary of Closed Store Reserve Activity | ' | ||||||||
The following is a summary of closed store reserve activity during the thirty-nine weeks ended September 28, 2014 and fiscal year ended December 29, 2013: | |||||||||
September 28, | December 29, | ||||||||
2014 | 2013 | ||||||||
Beginning balance | $ | 4,713 | $ | 5,243 | |||||
Additions | 688 | 363 | |||||||
Usage | (1,407 | ) | (1,728 | ) | |||||
Adjustments | (586 | ) | 835 | ||||||
Ending balance | $ | 3,408 | $ | 4,713 | |||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Summary of Reconciliation of Numerators and Denominators of Basic and Diluted Net Income Per Share | ' | ||||||||||||||||
A reconciliation of the numerators and denominators of the basic and diluted net income per share calculations is as follows (in thousands, except per share amounts): | |||||||||||||||||
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Basic net income per share: | |||||||||||||||||
Net income | $ | 26,065 | $ | 11,461 | $ | 89,949 | $ | 42,046 | |||||||||
Weighted average shares outstanding | 150,241 | 139,687 | 149,227 | 130,538 | |||||||||||||
Basic net income per share | $ | 0.17 | $ | 0.08 | $ | 0.6 | $ | 0.32 | |||||||||
Diluted net income per share: | |||||||||||||||||
Net income | $ | 26,065 | $ | 11,461 | $ | 89,949 | $ | 42,046 | |||||||||
Weighted average shares outstanding | 150,241 | 139,687 | 149,227 | 130,538 | |||||||||||||
Dilutive effect of equity-based awards: | |||||||||||||||||
Assumed exercise of options to purchase shares | 4,065 | 5,023 | 4,652 | 3,991 | |||||||||||||
Weighted average shares and equivalent shares outstanding | 154,306 | 144,710 | 153,879 | 134,529 | |||||||||||||
Diluted net income per share | $ | 0.17 | $ | 0.08 | $ | 0.58 | $ | 0.31 | |||||||||
EquityBased_Compensation_Table
Equity-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Summary of Equity-Based Compensation Expense | ' | ||||||||||||||||
Equity-based compensation expense was reflected in the consolidated statements of operations as follows: | |||||||||||||||||
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | ||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Cost of sales, buying and occupancy | $ | 152 | $ | 164 | $ | 546 | $ | 481 | |||||||||
Direct store expenses | 215 | 22 | 580 | 81 | |||||||||||||
Selling, general and administrative expenses | 832 | 1,433 | 3,068 | 3,723 | |||||||||||||
Equity-based compensation expense before income taxes | 1,199 | 1,619 | 4,194 | 4,285 | |||||||||||||
Income tax benefit | (480 | ) | (620 | ) | (1,678 | ) | (1,684 | ) | |||||||||
Net equity-based compensation expense | $ | 719 | $ | 999 | $ | 2,516 | $ | 2,601 | |||||||||
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Detail) (USD $) | 0 Months Ended | 9 Months Ended | |
In Millions, except Share data, unless otherwise specified | Aug. 06, 2013 | Sep. 28, 2014 | Aug. 06, 2013 |
Segment | |||
Organization And Description Of Business [Line Items] | ' | ' | ' |
Number of shares in initial public offering | ' | ' | 21,275,000 |
Shares of common stock sold by company | 20,477,215 | ' | ' |
Shares sold by stockholders | 797,785 | ' | ' |
Common stock issued price per share | ' | ' | $18 |
Net proceeds from issuance of stock | $344.10 | ' | ' |
Number of reportable segment | ' | 1 | ' |
Number of operating segment | ' | 1 | ' |
Produce [Member] | ' | ' | ' |
Organization And Description Of Business [Line Items] | ' | ' | ' |
Approximate net sales from produce in the first half of the fiscal year | ' | 26.00% | ' |
Accounts_Receivable_Summary_of
Accounts Receivable - Summary of Accounts Receivable (Detail) (USD $) | Sep. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts receivable | $14,077 | $9,524 |
Vendor [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts receivable | 8,731 | 5,183 |
Receivables from Landlords [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts receivable | 3,094 | 1,034 |
Medical Insurance Receivables [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts receivable | 37 | 1,089 |
Other [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts receivable | $2,215 | $2,218 |
Accounts_Receivable_Additional
Accounts Receivable - Additional Information (Detail) (Vendor [Member], USD $) | Sep. 28, 2014 | Dec. 29, 2013 |
In Millions, unless otherwise specified | ||
Vendor [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Allowances for receivables | $0.10 | $0.30 |
Accrued_Salaries_and_Benefits_1
Accrued Salaries and Benefits - Summary of Accrued Salaries and Benefits (Detail) (USD $) | Sep. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Bonuses | $10,074 | $8,393 |
Accrued payroll | 7,718 | 6,904 |
Vacation | 7,363 | 6,634 |
Other | 506 | 356 |
Total | $25,661 | $22,287 |
LongTerm_Debt_Summary_of_LongT
Long-Term Debt - Summary of Long-Term Debt (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 28, 2014 | Dec. 29, 2013 |
Debt Instrument [Line Items] | ' | ' |
Total debt | $257,856 | $311,240 |
Less current portion | -6,008 | -5,822 |
Long-term debt, net of current portion | 251,848 | 305,418 |
Senior Secured [Member] | Term Loan [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | $257,856 | $311,240 |
Debt instrument, Maturity | 'April 2020 | ' |
Debt instrument, Interest Rate | 'Variable | ' |
Senior Secured [Member] | $60.0 million Revolving Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, Maturity | 'April 2018 | ' |
Debt instrument, Interest Rate | 'Variable | ' |
LongTerm_Debt_Summary_of_LongT1
Long-Term Debt - Summary of Long-Term Debt (Parenthetical) (Detail) (Senior Secured [Member], $60.0 million Revolving Credit Facility [Member], USD $) | Sep. 28, 2014 |
In Millions, unless otherwise specified | |
Senior Secured [Member] | $60.0 million Revolving Credit Facility [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt instrument face amount | $60 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | |||||||||||
Aug. 14, 2014 | Sep. 28, 2014 | Sep. 29, 2013 | Sep. 28, 2014 | Sep. 29, 2013 | Dec. 29, 2013 | Apr. 23, 2013 | Sep. 28, 2014 | Sep. 28, 2014 | Sep. 28, 2014 | Sep. 28, 2014 | Sep. 28, 2014 | Sep. 28, 2014 | Sep. 28, 2014 | Apr. 23, 2013 | Sep. 28, 2014 | Apr. 23, 2013 | Sep. 28, 2014 | Apr. 23, 2013 | |
Senior Secured [Member] | Senior Secured [Member] | Senior Secured [Member] | Senior Secured [Member] | Senior Secured [Member] | Senior Secured [Member] | Senior Secured [Member] | Senior Secured [Member] | Senior Secured [Member] | Senior Secured [Member] | Senior Secured [Member] | Senior Secured [Member] | Senior Secured [Member] | |||||||
Maximum [Member] | Minimum [Member] | Eurodollar [Member] | LIBOR [Member] | Alternate Base Rate [Member] | Term Loan [Member] | Term Loan [Member] | $60.0 million Revolving Credit Facility [Member] | $60.0 million Revolving Credit Facility [Member] | $60.0 million Revolving Credit Facility [Member] | Junior Loans [Member] | |||||||||
Swingline Loan Subfacility [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current portion of long-term debt discount | ' | $1,000,000 | ' | $1,000,000 | ' | $1,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-current portion of long-term debt discount | ' | 4,200,000 | ' | 4,200,000 | ' | 5,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings under credit facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700,000,000 | ' | 60,000,000 | ' | ' |
Maximum incremental term loans and revolving commitments | ' | ' | ' | ' | ' | ' | 160,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net first lien leverage ratio | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.25 |
Credit facility terms | ' | ' | ' | ' | ' | ' | ' | '(i) in the case of incremental loans that rank pari passu with the initial term loans, the net first lien leverage ratio does not exceed 4.00 to 1.00, and (ii) in the case of incremental loans that rank junior to the initial Term Loan, the total leverage ratio does not exceed 5.25 to 1.00. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit interest rate terms | ' | ' | ' | ' | ' | ' | ' | 'At a rate per annum equal to LIBOR (with a 1.00% floor with respect to Eurodollar borrowings under the Term Loan), adjusted for statutory reserves, plus a margin equal to 3.00%, or an alternate base rate, plus a margin equal to 2.00%, as set forth in the Credit Facility. These interest margins were reduced to their current levels (from 3.50% and 2.50%, respectively) effective August 2, 2013, as a result of (i) the consummation of the Companybs IPO, and (ii) the Company achieving a reduction in the net first lien leverage ratio to less than or equal to 2.75 to 1.00. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate spread on base rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | 2.00% | ' | ' | ' | ' | ' | ' |
Interest rate margins reduce | ' | ' | ' | ' | ' | ' | ' | ' | 3.50% | 2.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in net first lien leverage | ' | ' | ' | ' | ' | ' | ' | ' | 2.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Voluntary principal payment of term loan | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on extinguishment of debt | ' | -1,138,000 | -9,507,000 | -1,138,000 | -17,682,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument maturity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'April 2020 | ' | 'April 2018 | ' | ' | ' |
Debt instrument principal repayment percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' |
Debt instrument periodic payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Four equal quarterly installments | ' | ' | ' | ' | ' |
Line of credit facility mandatory prepayments, description | ' | ' | ' | ' | ' | ' | ' | '(i) 50% (reduced to 25% if net first lien leverage is less than 3.00 to 1.00 but greater than 2.50 to 1.00 and 0% if net first lien leverage is less than 2.50 to 1.00) of excess cash flow (as defined in the Credit Facility) at the end of each fiscal year, (ii) 100% of the net cash proceeds from certain non-ordinary course asset sales by the Company or any subsidiary guarantor (subject to certain exceptions and reinvestment provisions) and (iii) 100% of the net cash proceeds from the issuance or incurrence of debt by the Company or any of its subsidiaries not permitted under the Credit Facility. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument face amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,000,000 | ' | 5,000,000 | ' |
Letters of credit issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,400,000 | ' | ' | ' |
Available amount under revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 52,600,000 | ' | ' | ' |
Capitalized total debt issuance costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,100,000 | ' | ' | ' |
Credit facility unused commitment fee percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' |
Ratio of revolving credit facility exposure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.75 | ' | ' | ' |
Closed_Store_Reserves_Summary_
Closed Store Reserves - Summary of Closed Store Reserve Activity (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 28, 2014 | Dec. 29, 2013 |
Restructuring and Related Activities [Abstract] | ' | ' |
Beginning balance | $4,713 | $5,243 |
Additions | 688 | 363 |
Usage | -1,407 | -1,728 |
Adjustments | -586 | 835 |
Ending balance | $3,408 | $4,713 |
Closed_Store_Reserves_Addition
Closed Store Reserves - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 28, 2014 | Dec. 29, 2013 | |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Favorable adjustments | ($586,000) | $835,000 |
Accretion expense and other occupancy costs | 900,000 | ' |
Sublease [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Favorable adjustments | 400,000 | ' |
Lease [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Favorable adjustments | $1,200,000 | ' |
Closure Store [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Number of store | 1 | ' |
Relocation Store [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Number of store | 1 | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2014 | Sep. 29, 2013 | Sep. 28, 2014 | Sep. 29, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Effective tax rate | 38.90% | 38.30% | 38.90% | 39.30% |
Excess tax benefits resulting from antidilution payment credited to stockholders' equity | ' | ' | ' | $4.40 |
Excess tax benefits resulting from stock awards credited to stockholders' equity | ' | ' | $35 | $1.50 |
RelatedParty_Transactions_Addi
Related-Party Transactions - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2014 | Sep. 29, 2013 | Sep. 28, 2014 | Sep. 29, 2013 |
Stockholders | ||||
Related Party Transactions [Abstract] | ' | ' | ' | ' |
Purchases from investors | $2 | $1.70 | $5.80 | $5.60 |
Accounts payable to vendor | 0.6 | 0.6 | 0.6 | 0.6 |
Number of stockholders, including board of directors, investors that supplies coffee to the Company | ' | ' | 2 | ' |
Services agreement | ' | ' | 'The Services Agreement provides for successive one-year terms unless either party provides six months' termination notice. | ' |
Fees and other expenses paid | $0.10 | $0.60 | $1 | $1.80 |
Agreement term expiration | ' | ' | 1-Sep-14 | ' |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Aug. 18, 2014 | Apr. 02, 2014 | Aug. 06, 2013 | Apr. 24, 2013 | Sep. 28, 2014 | Sep. 29, 2013 | Dec. 29, 2013 | Aug. 06, 2013 | |
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Secondary public offering shares of common stock | 17,158,191 | 17,250,000 | ' | ' | ' | ' | ' | ' |
Proceeds from options exercised | $700,000 | $1,600,000 | ' | ' | $7,605,000 | $75,000 | ' | ' |
Number of shares in initial public offering | ' | ' | ' | ' | ' | ' | ' | 21,275,000 |
Common stock issued price per share | ' | ' | ' | ' | ' | ' | ' | $18 |
Number of common stock sold | ' | ' | 20,477,215 | ' | ' | ' | ' | ' |
Shares sold by stockholders | ' | ' | 797,785 | ' | ' | ' | ' | ' |
Gross proceeds from initial public offering | ' | ' | 368,600,000 | ' | ' | ' | ' | ' |
Total proceeds from issuance of stock | ' | ' | 344,100,000 | ' | ' | ' | ' | ' |
Underwriting discounts and offering expenses | ' | ' | 24,500,000 | ' | ' | ' | ' | ' |
Repayment of Term Loan | ' | ' | ' | ' | 55,250,000 | 745,100,000 | ' | ' |
Dividend paid to stockholders | ' | ' | ' | 282,000,000 | ' | ' | 282,029,000 | ' |
Anti-dilution payments made to option holders | ' | ' | ' | 13,900,000 | ' | ' | 13,892,000 | ' |
Senior Secured [Member] | Term Loan [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of Term Loan | ' | ' | $340,000,000 | ' | ' | ' | ' | ' |
Net_Income_Per_Share_Summary_o
Net Income Per Share - Summary of Reconciliation of Numerators and Denominators of Basic and Diluted Net Income Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 28, 2014 | Sep. 29, 2013 | Sep. 28, 2014 | Sep. 29, 2013 | Dec. 29, 2013 |
Basic net income per share: | ' | ' | ' | ' | ' |
Net income | $26,065 | $11,461 | $89,949 | $42,046 | $51,326 |
Weighted average shares outstanding | 150,241 | 139,687 | 149,227 | 130,538 | ' |
Basic net income per share | $0.17 | $0.08 | $0.60 | $0.32 | ' |
Diluted net income per share: | ' | ' | ' | ' | ' |
Net income | $26,065 | $11,461 | $89,949 | $42,046 | $51,326 |
Weighted average shares outstanding | 150,241 | 139,687 | 149,227 | 130,538 | ' |
Dilutive effect of equity-based awards: | ' | ' | ' | ' | ' |
Assumed exercise of options to purchase shares | 4,065 | 5,023 | 4,652 | 3,991 | ' |
Weighted average shares and equivalent shares outstanding | 154,306 | 144,710 | 153,879 | 134,529 | ' |
Diluted net income per share | $0.17 | $0.08 | $0.58 | $0.31 | ' |
Net_Income_Per_Share_Additiona
Net Income Per Share - Additional Information (Detail) (Options [Member]) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2014 | Sep. 29, 2013 | Sep. 28, 2014 | Sep. 29, 2013 |
Options [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive Securities | 1 | 2.6 | 1 | 4.5 |
EquityBased_Compensation_Addit
Equity-Based Compensation - Additional Information (Detail) (USD $) | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | |||||||||||||||||
Aug. 18, 2014 | Apr. 02, 2014 | Sep. 28, 2014 | Sep. 29, 2013 | Dec. 29, 2013 | Sep. 28, 2014 | 19-May-14 | Mar. 04, 2014 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Sep. 29, 2013 | Sep. 28, 2014 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 28, 2014 | Sep. 28, 2014 | Sep. 28, 2014 | Dec. 29, 2013 | Sep. 28, 2014 | Sep. 28, 2014 | 19-May-14 | Mar. 04, 2014 | |
2013 Incentive Plan [Member] | 2013 Incentive Plan [Member] | 2013 Incentive Plan [Member] | 2013 Incentive Plan [Member] | 2013 Incentive Plan [Member] | 2013 Incentive Plan [Member] | 2013 Incentive Plan [Member] | 2011 Option Plan [Member] | 2011 Option Plan [Member] | 2011 Option Plan [Member] | 2011 Option Plan [Member] | Performance-Based Options [Member] | Time-Based Options [Member] | RSUs [Member] | RSUs [Member] | RSUs [Member] | RSUs [Member] | RSUs [Member] | RSUs [Member] | ||||||
Officers and Team Members [Member] | Officers and Team Members [Member] | Officers and Team Members [Member] | Officers and Team Members [Member] | Officers and Team Members [Member] | Independent Directors [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | 2013 Incentive Plan [Member] | 2013 Incentive Plan [Member] | |||||||||||||
Minimum [Member] | Maximum [Member] | Officers and Team Members [Member] | Officers and Team Members [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate options to purchase common stock granted | ' | ' | ' | ' | ' | ' | 37,047 | 320,041 | 396,000 | ' | ' | 11,112 | 209,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,174 | 108,980 |
Stock options awarded to employees, exercise price | ' | ' | ' | ' | ' | ' | $28.50 | $39.01 | $18 | ' | ' | $18 | $9.15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option grant date fair value | ' | ' | ' | ' | ' | ' | $8.07 | $10.66 | ' | $4.65 | $5.92 | $4.65 | ' | ' | $2.33 | $3.10 | ' | ' | ' | ' | ' | ' | $28.50 | $39.01 |
Number of shares authorized for issuance under plan | ' | ' | ' | ' | ' | 10,089,072 | ' | ' | ' | ' | ' | ' | ' | 12,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '3 years | ' | ' | '2 years | '3 years | ' | ' |
Additional expense related to anti-dilution provision payments made to certain option holders | ' | ' | ' | $500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding | ' | ' | 8,100,000 | ' | 10,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested options outstanding | ' | ' | 1,500,000 | ' | 2,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | 0 | ' | ' | ' | ' |
Unrecognized compensation expense related to outstanding options | ' | ' | 4,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,200,000 | ' | ' | ' | ' | ' |
Weighted-average period expected to be recognized | ' | ' | '1 year 1 month 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' |
Employees exercised options | ' | ' | 7,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from options exercised | $700,000 | $1,600,000 | $7,605,000 | $75,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
EquityBased_Compensation_Summa
Equity-Based Compensation - Summary of Equity-Based Compensation Expense (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2014 | Sep. 29, 2013 | Sep. 28, 2014 | Sep. 29, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' | ' |
Equity-based compensation expense before income taxes | $1,199 | $1,619 | $4,194 | $4,285 |
Income tax benefit | -480 | -620 | -1,678 | -1,684 |
Net equity-based compensation expense | 719 | 999 | 2,516 | 2,601 |
Cost of Sales, Buying and Occupancy [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' | ' |
Equity-based compensation expense before income taxes | 152 | 164 | 546 | 481 |
Direct Store Expenses [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' | ' |
Equity-based compensation expense before income taxes | 215 | 22 | 580 | 81 |
Selling, General and Administrative Expenses [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' | ' |
Equity-based compensation expense before income taxes | $832 | $1,433 | $3,068 | $3,723 |