Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 20, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SFM | ||
Entity Registrant Name | SPROUTS FARMERS MARKET, INC. | ||
Entity Central Index Key | 1,575,515 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 133,311,311 | ||
Entity Public Float | $ 3,088,626,747 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 19,479 | $ 12,465 |
Accounts receivable, net | 25,893 | 25,228 |
Inventories | 229,542 | 204,464 |
Prepaid expenses and other current assets | 24,593 | 21,869 |
Total current assets | 299,507 | 264,026 |
Property and equipment, net of accumulated depreciation | 713,031 | 604,660 |
Intangible assets, net of accumulated amortization | 196,205 | 197,608 |
Goodwill | 368,078 | 368,078 |
Other assets | 4,782 | 5,521 |
Total assets | 1,581,603 | 1,439,893 |
Current liabilities: | ||
Accounts payable and other accrued liabilities | 244,853 | 213,926 |
Accrued salaries and benefits | 45,623 | 32,859 |
Current portion of capital and financing lease obligations | 9,238 | 12,370 |
Total current liabilities | 299,714 | 259,155 |
Long-term capital and financing lease obligations | 125,489 | 117,366 |
Long-term debt | 348,000 | 255,000 |
Other long-term liabilities | 130,640 | 116,200 |
Deferred income tax liability | 27,066 | 19,263 |
Total liabilities | 930,909 | 766,984 |
Commitments and contingencies (Note 19) | ||
Stockholders’ equity: | ||
Undesignated preferred stock; $0.001 par value; 10,000,000 shares authorized, no shares issued and outstanding | ||
Common stock, $0.001 par value; 200,000,000 shares authorized, 132,823,981 shares issued and outstanding, December 31, 2017; 140,256,313 shares issued and outstanding, January 1, 2017 | 132 | 140 |
Additional paid-in capital | 620,788 | 597,269 |
Accumulated other comprehensive loss | (784) | |
Retained earnings | 30,558 | 75,500 |
Total stockholders’ equity | 650,694 | 672,909 |
Total liabilities and stockholders’ equity | $ 1,581,603 | $ 1,439,893 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Jan. 01, 2017 |
Statement Of Financial Position [Abstract] | ||
Undesignated preferred stock, par value | $ 0.001 | $ 0.001 |
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 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 132,823,981 | 140,256,313 |
Common stock, shares outstanding | 132,823,981 | 140,256,313 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Income Statement [Abstract] | |||
Net sales | $ 4,664,612 | $ 4,046,385 | $ 3,593,031 |
Cost of sales, buying and occupancy | 3,314,487 | 2,864,379 | 2,541,403 |
Gross profit | 1,350,125 | 1,182,006 | 1,051,628 |
Direct store expenses | 962,894 | 828,943 | 706,044 |
Selling, general and administrative expenses | 148,408 | 126,929 | 106,412 |
Store pre-opening costs | 11,627 | 12,974 | 8,616 |
Store closure and other costs | 1,126 | 228 | 1,802 |
Income from operations | 226,070 | 212,932 | 228,754 |
Interest expense | (21,177) | (14,794) | (17,723) |
Other income | 625 | 454 | 443 |
Loss on extinguishment of debt | (5,481) | ||
Income before income taxes | 205,518 | 198,592 | 205,993 |
Income tax provision | (47,078) | (74,286) | (77,002) |
Net income | $ 158,440 | $ 124,306 | $ 128,991 |
Net income per share: | |||
Basic | $ 1.17 | $ 0.84 | $ 0.84 |
Diluted | $ 1.15 | $ 0.83 | $ 0.83 |
Weighted average shares outstanding: | |||
Basic | 135,169 | 147,311 | 153,099 |
Diluted | 137,884 | 149,653 | 155,877 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 158,440 | $ 124,306 | $ 128,991 |
Other comprehensive loss, net of tax | |||
Unrealized losses on cash flow hedging activities, net of income tax of $(271), $0, and $0 | (784) | ||
Total other comprehensive loss | (784) | ||
Comprehensive income | $ 157,656 | $ 124,306 | $ 128,991 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Unrealized gains and losses on cash flow hedging activities, net of income tax | $ (271) | $ 0 | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
Beginning Balance at Dec. 28, 2014 | $ 685,389 | $ 152 | $ 543,048 | $ 142,189 | |
Beginning Balance, Shares at Dec. 28, 2014 | 151,833,334 | ||||
Net income | 128,991 | 128,991 | |||
Issuance of shares under stock plans | $ 6,320 | $ 2 | 6,318 | ||
Issuance of shares under stock plans, Shares | 1,773,518 | 1,812,829 | |||
Repurchase and retirement of common stock | $ (25,735) | $ (1) | (25,734) | ||
Repurchase and retirement of common stock, Shares | (1,068,279) | ||||
Excess tax benefit for exercise of options | 20,009 | 20,009 | |||
Equity-based compensation | 8,018 | 8,018 | |||
Ending Balance at Jan. 03, 2016 | 822,992 | $ 153 | 577,393 | 245,446 | |
Ending Balance, Shares at Jan. 03, 2016 | 152,577,884 | ||||
Net income | 124,306 | 124,306 | |||
Issuance of shares under stock plans | $ 2,740 | 2,740 | |||
Issuance of shares under stock plans, Shares | 565,568 | 666,841 | |||
Repurchase and retirement of common stock | $ (294,265) | $ (13) | (294,252) | ||
Repurchase and retirement of common stock, Shares | (13,242,483) | (13,242,483) | |||
Excess tax benefit for exercise of options | $ 3,737 | 3,737 | |||
Equity-based compensation | 13,399 | 13,399 | |||
Ending Balance at Jan. 01, 2017 | 672,909 | $ 140 | 597,269 | 75,500 | |
Ending Balance, Shares at Jan. 01, 2017 | 140,002,242 | ||||
Net income | 158,440 | 158,440 | |||
Other comprehensive loss | (784) | $ (784) | |||
Issuance of shares under stock plans | $ 9,300 | $ 2 | 9,298 | ||
Issuance of shares under stock plans, Shares | 1,863,059 | 2,144,669 | |||
Repurchase and retirement of common stock | $ (203,392) | $ (10) | (203,382) | ||
Repurchase and retirement of common stock, Shares | (9,696,819) | (9,696,819) | |||
Equity-based compensation | $ 14,221 | 14,221 | |||
Ending Balance at Dec. 31, 2017 | $ 650,694 | $ 132 | $ 620,788 | $ 30,558 | $ (784) |
Ending Balance, Shares at Dec. 31, 2017 | 132,450,092 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Cash flows from operating activities | |||
Net income | $ 158,440 | $ 124,306 | $ 128,991 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 96,744 | 80,414 | 69,169 |
Accretion of asset retirement obligation and closed store reserve | 243 | 309 | 344 |
Amortization of financing fees and debt issuance costs | 463 | 463 | 742 |
Loss on disposal of property and equipment | 1,623 | 439 | 1,512 |
Equity-based compensation | 14,221 | 13,399 | 8,018 |
Loss on extinguishment of debt | 5,481 | ||
Deferred income taxes | 7,803 | 20,663 | 15,581 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (4,920) | (4,803) | (5,622) |
Inventories | (25,079) | (39,030) | (22,641) |
Prepaid expenses and other current assets | (2,733) | 1,419 | (12,042) |
Other assets | (114) | 13,018 | (481) |
Accounts payable and other accrued liabilities | 39,244 | 22,118 | 26,782 |
Accrued salaries and benefits | 12,764 | 2,142 | 1,030 |
Other long-term liabilities | 10,868 | 19,494 | 23,034 |
Cash flows from operating activities | 309,567 | 254,351 | 239,898 |
Cash flows from investing activities | |||
Purchases of property and equipment | (198,624) | (181,018) | (125,313) |
Proceeds from sale of property and equipment | 30 | 706 | 2,708 |
Purchase of leasehold interests | (491) | (5,707) | |
Cash flows used in investing activities | (198,594) | (180,803) | (128,312) |
Cash flows from financing activities | |||
Proceeds from revolving credit facility | 153,000 | 105,000 | 260,000 |
Payments on revolving credit facility | (60,000) | (10,000) | (100,000) |
Payments on term loan | (261,250) | ||
Payments on capital and financing lease obligations | (4,192) | (4,364) | (4,142) |
Payments of deferred financing costs | (1,896) | ||
Cash from landlord related to financing lease obligations | 1,325 | 419 | |
Repurchase of common stock | (203,392) | (294,265) | (25,735) |
Proceeds from exercise of stock options | 9,300 | 2,740 | 6,565 |
Excess tax benefit for exercise of stock options | 3,737 | 20,009 | |
Cash flows used in financing activities | (103,959) | (197,152) | (106,030) |
Increase / (Decrease) in cash and cash equivalents | 7,014 | (123,604) | 5,556 |
Cash and cash equivalents at beginning of the period | 12,465 | 136,069 | 130,513 |
Cash and cash equivalents at the end of the period | 19,479 | 12,465 | 136,069 |
Supplemental disclosure of cash flow information | |||
Cash paid for interest | 20,759 | 14,537 | 17,455 |
Cash paid for income taxes | 33,475 | 46,083 | 40,656 |
Supplemental disclosure of non-cash investing and financing activities | |||
Property and equipment in accounts payable | 17,869 | 23,228 | 16,196 |
Property acquired through capital and financing lease obligations | $ 23,882 | $ 4,332 | $ 10,125 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business Sprouts Farmers Market, Inc., a Delaware corporation, through its subsidiaries, operates as a healthy grocery store that offers fresh, natural and organic food through a complete shopping experience that includes fresh produce, bulk foods, vitamins and supplements, packaged groceries, meat and seafood, baked goods, dairy products, frozen foods, beer and wine, natural body care and household items catering to consumers’ growing interest in health and wellness. As of December 31, 2017, the Company operated 285 stores in 15 states. For convenience, the “Company” is used to refer collectively to Sprouts Farmers Market, Inc. and, unless the context requires otherwise, its subsidiaries. The Company’s store operations are conducted by its subsidiaries. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 2. Basis of Presentation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All material intercompany accounts and transactions have been eliminated in consolidation. The Company has one reportable and one operating segment, healthy grocery stores. The Company categorizes its products as perishable and non-perishable. Perishable product categories include produce, meat and seafood, deli and baked goods. Non-perishable product categories include packaged groceries, vitamins and supplements, bulk foods, dairy products, frozen foods, beer and wine, and natural body care and household items. The following is a breakdown of the Company’s perishable and non-perishable sales mix: 2017 2016 2015 Perishables 50.0 % 50.4 % 50.8 % Non-Perishables 50.0 % 49.6 % 49.2 % All dollar amounts are in thousands, unless otherwise indicated. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 3. Significant Accounting Policies Fiscal Years The Company reports its results of operations on a 52- or 53-week fiscal calendar ending on the Sunday closest to December 31. Fiscal year 2017 ended on December 31, 2017 and included 52-weeks. Fiscal year 2016 ended on January 1, 2017 and included 52-weeks, while fiscal year 2015 ended on January 3, 2016 and included 53-weeks. Fiscal years 2017, 2016, and 2015 are referred to as 2017, 2016, and 2015. Significant Accounting Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. Such estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company’s critical accounting estimates include, but are not limited to: inventory valuations, lease assumptions, sublease assumptions for closed stores, self-insurance reserves, goodwill and intangible assets, impairment of long-lived assets, fair values of equity-based awards and derivatives, and income taxes. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all highly liquid instruments with an original maturity of three months or less to be cash equivalents. The Company’s cash and cash equivalents are maintained at financial institutions in the United States of America. Deposits in transit includes sales through the end of the period, the majority of which were paid with credit and debit cards and settle within a few days of the sales transactions. The amounts due from banks for these transactions at each reporting date were as follows: As Of December 31, 2017 January 1, 2017 Due from banks for debit and credit card transactions $ 51,825 $ 43,015 Accounts Receivable Accounts receivable generally represent billings to vendors for earned rebates, advertising and other items and landlords for tenant allowances. Accounts receivable also represent receivables from the Company’s insurance carrier for payments expected to be made in excess of self-insured retentions. When a specific account is determined uncollectible, the net recognized receivable is written off. Inventories Inventories consist of merchandise purchased for resale, which are stated at the lower of cost or net realizable value. The cost method is used for warehouse and store perishable department inventories by assigning costs to each of these items based on a first-in, first-out (FIFO) basis (net of vendor discounts). The Company’s non-perishable inventory is valued at the lower of cost or market using weighted averaging, the use of which approximates the FIFO method. The Company believes that all inventories are saleable and no allowances or reserves for obsolescence were recorded as of December 31, 2017 and January 1, 2017. Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation and amortization. Expenditures for major additions and improvements to facilities are capitalized, while maintenance and repairs are charged to expense as incurred. When property is retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of operations. Depreciation expense, which includes the amortization of assets recorded under capital and financing leases, is computed using the straight-line method over the estimated useful lives of the individual assets. Leasehold improvements and assets under capital and financing leases are amortized over the shorter of the lease term to which they relate, or the estimated useful life of the asset. Terms of leases used in the determination of estimated useful lives may include renewal options if the exercise of the renewal option is determined to be reasonably assured. The following table includes the estimated useful lives of certain of our asset classes: Computer hardware and software 3 to 5 years Furniture, fixtures and equipment 7 to 20 years Leasehold improvements up Buildings 40 years Store development costs, which include costs associated with the selection and procurement of real estate sites, are also included in property and equipment. These costs are included in leasehold improvements and are amortized over the remaining lease term of the successful sites with which they are associated. Closed Store Reserve The Company recognizes a reserve for future operating lease payments and other occupancy costs associated with facilities that are no longer being utilized in its current operations. The reserve is recorded based on the present value of the remaining noncancelable lease payments and estimates of other occupancy costs after the cease use date, less an estimate of subtenant income. If subtenant income is expected to be higher than the lease payments, no accrual is recorded. Lease payments and other occupancy costs included in the closed store reserve are expected to be paid over the remaining terms of the respective leases. Adjustments to the closed store reserve relate primarily to changes in actual or estimated subtenant income and actual lease payments and other occupancy costs from original estimates. Adjustments are made for changes in estimates in the period in which the change becomes known considering timing of new information regarding the market, subleases or other lease updates. Adjustments in the closed store reserves are recorded in “store closure and other costs” in the accompanying consolidated statements of operations. See Note 16, “Closed Store Reserves.” Self-Insurance Reserves The Company uses a combination of insurance and self-insurance programs to provide for costs associated with general liability, workers’ compensation and team member health benefits. Liabilities for self-insurance reserves are estimated through consideration of various factors, which include historical claims experience, demographic factors, severity factors and other actuarial assumptions. Amounts expected to be recovered from insurance companies are included in the liability, with a corresponding amount recorded in accounts receivable. Goodwill and Intangible Assets Goodwill represents the cost of acquired businesses in excess of the fair value of assets and liabilities acquired. The Company’s indefinite-lived intangible assets consist of trade names related to “Sprouts Farmers Market” and liquor licenses. The Company also holds intangible assets with finite useful lives, consisting of favorable and unfavorable leasehold interests and the “Sunflower Farmers Market” trade name. Goodwill is evaluated for impairment on an annual basis or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company’s impairment evaluation of goodwill consists of a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company’s qualitative assessment indicates it is more likely than not that the estimated fair value of a reporting unit exceeds its carrying value, no further analysis is required and goodwill is not impaired. Otherwise, the Company follows a two-step quantitative goodwill impairment test to determine if goodwill is impaired. The first step of the quantitative goodwill impairment test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of the Company’s reporting unit exceeds its carrying value, no further analysis or impairment of goodwill is required. If the carrying value of the Company’s reporting unit exceeds its fair value, the fair value of the reporting unit would be allocated to the reporting unit’s assets and liabilities based on the relative fair value, with goodwill written down to its implied fair value, if necessary. Indefinite-lived assets are evaluated for impairment on an annual basis or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company’s impairment evaluation for its indefinite-lived intangible assets consists of a qualitative assessment similar to that for goodwill. If the Company’s qualitative assessment indicates it is more likely than not that the estimated fair value of an indefinite-lived intangible asset exceeds its carrying value, no further analysis is required and the asset is not impaired. Otherwise, the Company compares the estimated fair value of the asset to its carrying amount with an impairment loss recognized for the amount, if any, by which carrying value exceeds estimated fair value. The Company can elect to bypass the qualitative assessments approach for goodwill and indefinite-lived intangible assets and proceed directly to the quantitative assessments for goodwill or any indefinite-lived intangible assets in any period. The Company has determined its business consists of a single reporting unit, healthy grocery stores. When applying the quantitative test, the Company determines the fair value of its reporting unit using the income approach methodology of valuation that includes the discounted cash flow method as well as other generally accepted valuation methodologies. We have had no goodwill impairment charges for the past three fiscal years. See Note 7, “Intangible Assets” and Note 8, “Goodwill” for further discussion. The trade name related to “Sunflower Farmers Market” meets the definition of a defensive intangible asset and is amortized on a straight-line basis over an estimated useful life of 10 years from the date of its acquisition by the Company. Favorable and unfavorable leasehold interests are amortized on a straight-line basis over the lease term. Impairment of Long-Lived Assets The Company assesses its long-lived assets, including property and equipment and finite-lived intangible assets, for potential impairment each quarter based on whether certain triggering events have occurred or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. These events include current period losses combined with a history of losses or a projection of continuing losses, a significant decrease in the market value of an asset or a significant negative industry or economic trend. The Company groups and evaluates long-lived assets for impairment at the individual store level, which is the lowest level at which independent identifiable cash flows are available. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by that asset. If impairment is indicated, a loss is recognized for any excess of the carrying value over the estimated fair value of the asset group. The fair value is estimated based on the discounted future cash flows or comparable market values, if available. The Company did not record any impairment loss during 2017, 2016 or 2015. Deferred Financing Costs The Company capitalizes certain fees and costs incurred in connection with the issuance of debt. Deferred financing costs are amortized to interest expense over the term of the debt using the effective interest method. For the Credit Facility and Former Credit Facility (as defined in Note 12, “Long-Term Debt”), deferred financing costs are amortized on a straight-line basis over the term of the facility. Upon prepayment, redemption or conversion of debt, the Company accelerates the recognition of an appropriate amount of financing costs as loss on extinguishment of debt. The current and noncurrent portions of deferred financing costs are included in prepaid expenses and other current assets and other assets, respectively, in the accompanying consolidated balance sheets. Operating Leases The Company leases certain stores, warehouse facilities and administrative offices under operating leases. Incentives received from lessors are deferred and recorded as a reduction of rental expense over the lease term using the straight-line method. The current portion of unamortized lease incentives is included in other accrued liabilities and the noncurrent portion is included in other long-term liabilities in the accompanying consolidated balance sheets. Store lease agreements generally include rent abatements and rent escalation provisions and may include contingent rent provisions based on a percentage of sales in excess of specified levels. The Company recognizes escalations of minimum rents and/or abatements as deferred rent and amortizes these balances on a straight-line basis over the term of the lease. For lease agreements that require the payment of contingent rents based on a percentage of sales above stipulated minimums, the Company begins accruing an estimate for contingent rent when it is determined that it is probable the specified levels of sales in excess of the stipulated minimums will be reached during the year. The Company expensed $1.9 million, $1.8 million and $1.8 million for the years ended December 31, 2017, January 1, 2017 and January 3, 2016, respectively, for contingent rent. Financing Lease Obligations Financing lease obligations are recorded for store building leases in which the Company was deemed to be the owner during the construction period under lease accounting guidance. Further, each lease contains provisions indicating continuing involvement with the property at the end of the construction period, which include either an affiliate guaranty or contingent collateral. As a result, in accordance with applicable accounting guidance, buildings and related assets subject to the leases are reflected on the Company’s balance sheets and depreciated over their remaining useful lives. The present value of the lease payments associated with these buildings is recorded as financing lease obligations. Monthly lease payments are allocated between the land element of the lease (which is accounted for as an operating lease) and the financing obligation. The financing obligation is amortized using the effective interest method and the interest rate is determined in accordance with the requirements of sale-leaseback accounting. Lease payments less the portion allocated to the land element of the lease and that portion considered to be interest expense decrease the financing liability. At the end of the initial lease term, should the Company decide not to renew the lease, the net book value of the asset and the corresponding financing obligation would be reversed. The outflows from the construction of the buildings are classified as investing activities, and the outflows associated with the financing obligations principal payments and inflows from the associated financing proceeds are classified as financing activities in the accompanying consolidated statements of cash flows. 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 valuation of derivative instruments, impairment analysis of goodwill, intangible assets, and long-lived assets and in the valuation of store closure and exit costs. 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. Derivative Financial Instruments We record derivatives at fair value. The designation of a derivative instrument as a hedge and its ability to meet the hedge accounting criteria determine how we reflect the change in fair value of the derivative instrument in our financial statements. A derivative qualifies for hedge accounting if, at inception, the derivative is expected to be highly effective in offsetting the underlying hedged cash flows and we fulfill the hedge documentation standards at the time we enter into the derivative contract. We designate our hedge based on the exposure we are hedging. For qualifying cash flow hedges, we record changes in fair value in other comprehensive income (OCI). We release the derivative’s gain or loss from OCI to match the timing of the underlying hedged item’s effect on earnings. We review the effectiveness of our hedging instruments quarterly. We recognize changes in the fair value for derivatives not designated as hedges or those not qualifying for hedge accounting in current period earnings. We discontinue hedge accounting for any hedge that is no longer evaluated to be highly effective. We do not enter into derivative financial instruments for trading or speculative purposes, and we monitor the financial stability and credit standing of our counterparties in these transactions. Equity-Based Compensation The Company measures equity-based compensation cost at the grant date based on the fair value of the award and recognizes equity-based compensation cost as expense over the vesting period. As equity-based compensation expense recognized in the consolidated statements of operations is based on awards ultimately expected to vest, the amount of expense has been reduced for actual forfeitures as they occur. The Company uses the Black-Scholes option-pricing model to determine the grant date fair value for each option grant. The Black-Scholes option-pricing model requires extensive use of subjective assumptions. See Note 25, “Equity-Based Compensation” for a discussion of assumptions used in the calculation of fair values. Application of alternative assumptions could produce different estimates of the fair value of equity-based compensation and, consequently, the related amounts recognized in the accompanying consolidated statements of operations. The grant date fair value of restricted stock units (“RSUs”), performance share awards (“PSAs”), and restricted stock awards (“RSAs”) is based on the closing price per share of the Company’s stock on the grant date. The Company recognizes compensation expense for time-based awards on a straight-line basis and for performance-based awards on the graded-vesting method over the vesting period of the awards. Revenue Recognition Revenue is recognized at the point of sale. Discounts provided to customers at the time of sale are recognized as a reduction in sales as the discounted products are sold. Sales taxes are not included in revenue. Proceeds from the sale of gift cards are recorded as a liability at the time of sale, and recognized as sales when they are redeemed by the customer. Beginning in 2015, the Company obtained sufficient historical redemption data for its gift card program to make a reasonable estimate of the ultimate redemption patterns and breakage rate. Cost of Sales, Buying and Occupancy Cost of sales, buying and occupancy includes the cost of inventory sold during the period, including the direct costs of purchased merchandise (net of discounts and allowances), distribution and supply chain costs, buying costs and supplies. Occupancy costs include store rental, property taxes, utilities, common area maintenance, amortization of favorable or unfavorable leasehold interests and property insurance. The Company recognizes vendor allowances and merchandise volume related rebate allowances as a reduction of inventories during the period when earned and reflects the allowances as a component of cost of sales, buying and occupancy as the inventory is sold. Our largest supplier accounted for approximately 34%, 33% and 31% of total purchases during 2017, 2016, and 2015, respectively. Direct Store Expenses Direct store expenses consist of store-level expenses such as salaries and benefits, related equity-based compensation, supplies, depreciation and amortization for buildings and store leasehold improvements, equipment and other store specific costs. Selling, General and Administrative Expenses Selling, general and administrative expenses primarily consist of salaries and benefits costs, related equity-based compensation, advertising, acquisition-related costs and corporate overhead. The Company charges third-parties to place advertisements in the Company’s in-store guide and circulars. The Company records rebates received from vendors in connection with cooperative advertising programs as a reduction to advertising costs when the allowance represents a reimbursement of a specific incremental and identifiable cost. Advertising costs are expensed as incurred. Advertising expense, net of rebates, was $42.3 million, $37.0 million and $32.0 million for 2017, 2016 and 2015, respectively. Store Pre-Opening Costs Store pre-opening costs include rent expense during construction of new stores and costs related to new store openings, including costs associated with hiring and training personnel and other miscellaneous costs. Store pre-opening costs are expensed as incurred. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company’s deferred tax assets are subject to periodic recoverability assessments. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that more likely than not will be realized. Realization of the deferred tax assets is principally dependent upon achievement of projected future taxable income offset by deferred tax liabilities. Changes in recognition or measurement are reflected in the period in which the judgment occurs. The Company recognizes the effect of uncertain income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits as part of income tax expense. Share Repurchases The Company has elected to retire shares repurchased to date. Shares retired become part of the pool of authorized but unissued shares. The Company has elected to record purchase price of the retired shares in excess of par value directly as a reduction of retained earnings. Net Income per Share Basic net income per share is calculated by dividing net income by the weighted average number of shares outstanding during the fiscal period. Diluted net income per share is based on the weighted average number of shares outstanding, plus, where applicable, shares that would have been outstanding related to dilutive options, PSAs and RSUs. Comprehensive Income Comprehensive income consists of net income and the unrealized gains or losses on derivative instruments that qualify for and have been designated as cash flow hedges, for all periods presented. Recently Adopted Accounting Pronouncements In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory.” ASU No. 2015-11 changes the measurement principle for inventory from the lower of cost or market to lower of cost and net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business; less reasonably predictable costs of completion, disposal and transportation. This guidance is effective for the Company for its fiscal year 2017. Adoption of the guidance took place prospectively during 2017, and the adoption did not have a material effect on the Company’s consolidated financial statements or disclosures. In March 2016, the FASB issued ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718).” This update involves several aspects of the accounting for share-based transactions, including the income tax consequences, classification of awards as either equity or liabilities, how to account for forfeitures, and classification on the statement of cash flows. The amendments in this update are effective for the Company for its fiscal year 2017. As a result of the adoption, the Company recognized excess tax benefits related to the exercise of options in its income tax provision during fiscal 2017 (see Note 17, “Income Taxes”). Prior to the adoption, these items were recorded in Additional Paid-in Capital. The Company has elected to prospectively apply the amendments related to classifying cash flows related to excess tax benefits as an operating activity. During 2017, excess tax benefits were classified as an operating activity on the consolidated statement of cash flows, along with other income tax cash flows. The Company has made a policy election to account for forfeitures as they occur. This election was adopted using a modified retrospective approach resulting in no cumulative effect on retained earnings at the beginning of the period. Prior to the adoption, forfeitures were accounted for using an estimated forfeiture rate. In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and hedging (Topic 815): Targeted improvements to accounting for hedging activities.” The amendments in this update expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of effects of the hedging instrument and the hedged item in the financial statements. The amendments also make certain targeted improvements to simplify the application of hedge accounting guidance and ease the administrative burden of hedge documentation requirements and assessing hedge effectiveness. The amendments in this update are effective for the Company for its fiscal year 2019, however, the Company has elected to early-adopt. Adoption of the guidance took place prospectively during 2017, and the adoption did not have a material effect on the Company’s consolidated financial statements or disclosures. Recently Issued Accounting Pronouncements Not Yet Adopted 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. Subsequent to the initial standards, the FASB has also issued several ASUs to clarify specific revenue recognition topics. This guidance will be effective for the Company for its fiscal year 2018, with early adoption permitted. The Company will adopt using the modified retrospective approach and does not expect this ASU to materially impact the Company’s consolidated financial statements. The most significant impact will be related to additional disclosures and the addition of a disaggregated revenue footnote. The disaggregated revenue footnote, as well as additional disclosures, will first be disclosed in the 2018 Form 10-Q for the first quarter. In February 2016, the FASB issued ASU No. 2016-02, “Leases (ASC 842).” ASU No. 2016-02 requires lessees to recognize a right-of-use asset and corresponding lease liability for all leases with terms greater than twelve months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. The new guidance also requires certain additional quantitative and qualitative disclosures. This guidance will be effective for the Company for its fiscal year 2019, with early adoption permitted, and the Company is currently evaluating the potential impact of this guidance. The adoption of this ASU is expected to result in a material increase to the Company’s consolidated balance sheets for right-of-use assets and lease liabilities. In March 2016, the FASB issued ASU No. 2016-04, “Liabilities-Extinguishments of Liabilities (Subtopic 405-20): Recognition of breakage for certain prepaid stored-value products.” ASU No. 2016-04 provides a narrow scope exception to the guidance in Subtopic 405-20 to require that stored-value breakage be accounted for consistently with the breakage guidance in Topic 606. The amendments in this update contain specific guidance for derecognition of prepaid stored-value product liabilities, thereby eliminating the current and potential future diversity. This guidance will be effective for the Company for its fiscal year 2018, with early adoption permitted. The Company does not expect this ASU to materially impact the Company’s consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This update provides clarifications on the cash flow classification for eight specific cash flow issues: debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (COLIs) (including bank-owned life insurance policies (BOLIs)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. The guidance will be effective for the Company for its fiscal year 2018, with early adoption permitted. The Company does not expect this ASU to materially impact the Company’s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” The amendments in this update eliminate the second step of the goodwill impairment test and provide that a n entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. The guidance will be effective for the Company for its fiscal year 2020, with early adoption permitted. The Company does not expect this ASU to materially impact the Company’s consolidated financial statements . In May 2017, the FASB issued ASU No. 2017-09, “Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting.” The amendments in this update provide guidance about which changes to the terms or conditions of a share-based award require an entity to apply modification accounting in Topic 718. The guidance will be effective for the Company for its fiscal year 2018, with early adoption permitted. The Company does not expect this ASU to materially impact the Company’s consolidated financial statements. No other new accounting pronouncements issued or effective during fiscal 2017 had, or are expec |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Accounts Receivable | 4. Accounts Receivable A summary of accounts receivable is as follows: As Of December 31, 2017 January 1, 2017 Vendors $ 15,355 $ 13,686 Landlords 4,290 2,583 Insurance 1,137 3,803 Other 5,111 5,156 Total $ 25,893 $ 25,228 The Company had recorded allowances for certain vendor receivables of $0.1 million at both December 31, 2017 and January 1, 2017. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | 5. Prepaid Expenses and Other Current Assets A summary of prepaid expenses and other current assets is as follows: As Of December 31, 2017 January 1, 2017 Prepaid rent $ 14,785 $ 12,971 Prepaid expenses $ 9,354 $ 6,288 Income tax receivable — 2,148 Other current assets 454 462 Total $ 24,593 $ 21,869 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 6. Property and Equipment A summary of property and equipment, net is as follows: As Of December 31, 2017 January 1, 2017 Land and Buildings $ 151,309 $ 130,821 Furniture, fixtures and equipment 491,990 400,724 Leasehold improvements 401,237 321,730 Construction in progress 52,100 49,263 Total property and equipment 1,096,636 902,538 Accumulated depreciation and amortization (383,605 ) (297,878 ) Property and equipment, net $ 713,031 $ 604,660 A summary of leased property and equipment under capital and financing lease obligations is as follows: As Of December 31, 2017 January 1, 2017 Capital Leases—Buildings Gross asset balance $ 16,745 $ 11,338 Accumulated depreciation (4,257 ) (3,133 ) Net $ 12,488 $ 8,205 Financing Leases Gross asset balance 151,599 135,946 Accumulated depreciation (17,941 ) (14,681 ) Net $ 133,658 $ 121,265 Depreciation expense was $96.6 million, $80.2 million and $69.1 million for 2017, 2016 and 2015, respectively. Depreciation expense is primarily reflected in direct store expenses on the consolidated statements of operations. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 7. Intangible Assets A summary of the activity and balances in intangible assets is as follows: Balance at January 3, 2016 Additions (1) Balance at January 1, 2017 Gross Intangible Assets Indefinite-lived trade names $ 182,937 $ — $ 182,937 Indefinite-lived liquor licenses 2,023 — 2,023 Finite-lived trade names 1,800 — 1,800 Leasehold interests 18,300 473 18,773 Total intangible assets $ 205,060 $ 473 $ 205,533 Accumulated Amortization Finite-lived trade names $ (645 ) $ (180 ) $ (825 ) Leasehold interests (5,814 ) (1,286 ) (7,100 ) Total accumulated amortization $ (6,459 ) $ (1,466 ) $ (7,925 ) Balance at January 1, 2017 Additions Balance at December 31, 2017 Gross Intangible Assets Indefinite-lived trade names $ 182,937 $ — $ 182,937 Indefinite-lived liquor licenses 2,023 — 2,023 Finite-lived trade names 1,800 — 1,800 Leasehold interests 18,773 — 18,773 Total intangible assets $ 205,533 $ — $ 205,533 Accumulated Amortization Finite-lived trade names $ (825 ) $ (180 ) $ (1,005 ) Leasehold interests (7,100 ) (1,223 ) (8,323 ) Total accumulated amortization $ (7,925 ) $ (1,403 ) $ (9,328 ) (1) Additions during 2016 represent leasehold interests as a result of adjustments to the leases acquired in 2015 and a lease acquired in 2016. Amortization expense was $1.4 million, $1.5 million and $1.3 million for 2017, 2016 and 2015, respectively. Future amortization associated with the net carrying amount of finite-lived intangible assets is as follows: 2018 1,402 2019 1,386 2020 1,375 2021 1,339 2022 1,189 Thereafter 4,554 Total amortization $ 11,245 The remaining weighted-average amortization period of leasehold interests acquired total 10.0 years. The remaining amortization period of the finite-lived trade name is 4.4 years. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 8. Goodwill The balance of our goodwill was $368.1 million as of December 31, 2017, January 1, 2017 and January 3, 2016. As of December 31, 2017, January 1, 2017 and January 3, 2016, the Company had no accumulated goodwill impairment losses. The goodwill was related to the acquisition of Sunflower Farmers Market stores and Henry’s Farmers Market stores. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Assets | 9. Other Assets A summary of other assets is as follows: As Of December 31, 2017 January 2017 Other assets 4,782 5,521 As of December 31, 2017, the other assets balance primarily consists of claim amounts in excess of self-insurance retentions to be paid by the Company’s insurance provider (see Note 14, “Self-Insurance Programs”), sublease deferred rent, and miscellaneous other assets. |
Accounts Payable and Other Accr
Accounts Payable and Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Other Accrued Liabilities | 10. Accounts Payable and Other Accrued Liabilities A summary of other accrued liabilities is as follows: As Of December 31, 2017 January 1, 2017 Trade accounts payable $ 119,034 $ 115,326 Accrued occupancy related (CAM, property taxes, etc.) 21,766 14,650 Self-insurance reserves 19,714 19,161 Capital expenditures 16,409 18,884 Distribution centers 15,980 8,349 Gift cards 13,099 12,264 Income taxes payable 3,391 — Other 35,460 25,292 Total $ 244,853 $ 213,926 |
Accrued Salaries and Benefits
Accrued Salaries and Benefits | 12 Months Ended |
Dec. 31, 2017 | |
Payables And Accruals [Abstract] | |
Accrued Salaries and Benefits | 11. Accrued Salaries and Benefits A summary of accrued salaries and benefits is as follows: As Of December 31, 2017 January 1, 2017 Bonuses 16,957 8,168 Payroll 14,906 $ 12,972 Vacation 12,281 10,633 Other 1,479 1,086 Total $ 45,623 $ 32,859 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 12. Long-Term Debt A summary of long-term debt is as follows: As Of Facility Maturity Interest December 31, 2017 January 1, 2017 Senior secured debt $450.0 million Credit Facility April 17, 2020 Variable $ 348,000 $ 255,000 Total debt 348,000 255,000 Long-term debt $ 348,000 $ 255,000 Senior Secured Revolving Credit Facility April 2015 Refinancing On April 17, 2015, the Company’s subsidiary, Sprouts Farmers Markets Holdings, LLC (“Intermediate Holdings”), as borrower, entered into a credit agreement (the “Credit Agreement”) to replace the Former Credit Facility (as defined below). The Credit Agreement provides for a revolving credit facility with an initial aggregate commitment of $450.0 million (the “Credit Facility”), which may be increased from time to time pursuant to an expansion feature set forth in the Credit Agreement. Concurrently with the closing of the Credit Agreement, the Company borrowed $260.0 million to pay off its existing $257.8 million former term loan (the “April 2015 Refinancing”), to terminate all commitments under its existing senior secured credit facility, dated April 23, 2013 (the “Former Credit Facility”) and to pay transaction costs related to the April 2015 Refinancing. Such repayment resulted in a $5.5 million loss on extinguishment of debt due to the write-off of deferred financing costs and original issue discount. No amounts were outstanding under the $60.0 million secured revolving credit facility component of the Former Credit Facility on April 17, 2015. The remaining proceeds of loans made under the Credit Facility were used for general corporate purposes. The Company capitalized debt issuance costs of $2.3 million related to the Credit Facility, which are being amortized on a straight-line basis to interest expense over the five-year term of the Credit Facility. The Credit Agreement also provides for a letter of credit subfacility and a $15.0 million swingline facility. Letters of credit issued under the Credit Agreement reduce the borrowing capacity of the Credit Facility. Letters of credit totaling $27.5 million have been issued as of December 31, 2017, primarily to support the Company’s insurance programs. Guarantees Obligations under the Credit Facility are guaranteed by the Company and all of its current and future wholly-owned material domestic subsidiaries, and are secured by first-priority security interests in substantially all of the assets of the Company and its subsidiary guarantors, including, without limitation, a pledge by the Company of its equity interest in Intermediate Holdings. Interest and Fees Loans under the Credit Facility bear interest, at the Company’s option, either at adjusted LIBOR plus 1.50% per annum, or a base rate plus 0.50% per annum. The interest rate margins are subject to adjustment pursuant to a pricing grid based on the Company’s total gross leverage ratio, as defined in the Credit Agreement. Under the terms of the Credit Agreement, the Company is obligated to pay a commitment fee on the available unused amount of the Credit Facility commitments equal to 0.20% per annum. Outstanding letters of credit under the Credit Facility are subject to a participation fee of 1.50% per annum and an issuance fee of 0.125% per annum. Payments and Borrowings The Credit Facility is scheduled to mature, and the commitments thereunder will terminate on April 17, 2020, subject to extensions as set forth in the Credit Agreement. The Company may repay loans and reduce commitments under the Credit Agreement at any time in agreed-upon minimum principal amounts, without premium or penalty (except LIBOR breakage costs, if applicable). During 2016, the Company borrowed $105.0 million to be used in connection with the Company’s -$250.0 million share repurchase program and made a total of $10.0 million of principal payments; resulting in total outstanding debt under the Credit Facility of $255.0 million at January 1, 2017. During 2017, the Company borrowed an additional $153.0 million to be used in connection with the Company’s $250.0 million share repurchase program (see Note 20, “Capital Stock”) and made a total of $60.0 million of principal payments; resulting in total outstanding debt under the Credit Facility of $348.0 million at December 31, 2017. Covenants The Credit Agreement 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 debt or other material agreements; and • change its fiscal year Each of these covenants is subject to customary and other agreed-upon exceptions. In addition, the Credit Agreement requires that the Company and its subsidiaries maintain a maximum total net leverage ratio not to exceed 3.00 to 1.00 and minimum interest coverage ratio not to be less than 1.75 to 1.00. Each of these covenants is tested on the last day of each fiscal quarter, starting with the fiscal quarter ended June 28, 2015. The Company was in compliance with all applicable covenants under the Credit Agreement as of December 31, 2017 and January 1, 2017. |
Other Long-Term Liabilities
Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | 13. Other Long-Term Liabilities A summary of other long-term liabilities is as follows: As Of December 31, 2017 January 1, 2017 Unamortized lease incentives $ 60,942 $ 54,176 Deferred rent 28,791 24,581 Self-insurance reserves 22,756 22,399 Unfavorable leasehold interests 7,727 8,954 Other 10,424 6,090 Total $ 130,640 $ 116,200 Unfavorable leasehold interests of $16.7 million were recognized in connection with previous business combinations in 2011 and 2012 and are being amortized on a straight-line basis over the term of the underlying leases. |
Self-Insurance Programs
Self-Insurance Programs | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Self-Insurance Programs | 14. Self-Insurance Programs The Company is self-insured for costs related to workers’ compensation, general liability and employee health benefits up to certain stop-loss limits. The Company establishes reserves for the ultimate obligation of reported and incurred but not reported (“IBNR”) claims. IBNR claims are estimated using historical claim information, demographic factors, severity factors and other actuarial assumptions. The Company purchases coverage from third-party insurers for exposures in excess of certain stop-loss limits and recorded receivables of $2.6 million and a $6.1 million from its insurance carriers for payments expected to be made in excess of self-insured retentions at December 31, 2017 and January 1, 2017, respectively. The Company expects $1.1 million of the 2017 receivable to be paid during 2018. See Note 10, “Accounts Payable and Other Accrued Liabilities,” and Note 13, “Other Long-Term Liabilities” for amounts recorded for general liability and workers’ compensation liabilities. |
Defined Contribution Plan
Defined Contribution Plan | 12 Months Ended |
Dec. 31, 2017 | |
Postemployment Benefits [Abstract] | |
Defined Contribution Plan | 15. Defined Contribution Plan The Company maintains the Sprouts Farmers Market, Inc. Employee 401(k) Savings Plan (the “Plan”), which is a defined contribution plan covering all eligible team members. Under the provisions of the Plan, participants may direct the Company to defer a portion of their compensation to the Plan, subject to the Internal Revenue Code limitations. The Company provides for an employer matching contribution equal to 50% of each dollar contributed by the participants up to 6% of their eligible compensation. Total expense recorded for the matching under the Plan: Year Ended December 31, 2017 January 1, 2017 January 3, 2016 $ 4,067 $ 3,354 $ 2,656 |
Closed Store Reserves
Closed Store Reserves | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring And Related Activities [Abstract] | |
Closed Store Reserves | 16. Closed Store Reserves A summary of closed store reserve activity is as follows: As Of December 31, 2017 January 1, 2017 Beginning balance $ 1,083 $ 2,017 Additions — — Usage (492 ) (998 ) Adjustments 220 64 Ending balance $ 811 $ 1,083 Usage during 2017 primarily related to lease payments made during the period for closed stores. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 17. Income Taxes On December 22, 2017, the legislation commonly referred to as the The staff of the US Securities and Exchange Commission (SEC) has recognized the complexity of reflecting the impacts of the Tax Act, and on December 22, 2017 issued guidance in Staff Accounting Bulletin 118 (SAB 118) which clarifies accounting for income taxes under ASC 740 if information is not yet available or complete and provides for up to a one year period in which to complete the required analyses and accounting (the measurement period). SAB 118 describes three scenarios (or “buckets”) associated with a company’s status of accounting for the Tax Act: (1) a company is complete with its The Company has substantially completed the measurement and accounting of certain effects of the enactment of the Tax Act Income Tax Provision The income tax provision consists of the following: Year Ended December 31, 2017 January 1, 2017 January 3, 2016 U.S. Federal—current $ (31,667 ) $ (44,588 ) $ (51,322 ) U.S. Federal—deferred (6,551 ) (19,293 ) (15,155 ) U.S. Federal—total (38,218 ) (63,881 ) (66,477 ) State—current (7,337 ) (9,036 ) (9,619 ) State—deferred (1,523 ) (1,369 ) (906 ) State—total (8,860 ) (10,405 ) (10,525 ) Total provision $ (47,078 ) $ (74,286 ) $ (77,002 ) Tax Rate Reconciliation Income tax provision differed from the amounts computed by applying the U.S. federal income tax rate to pretax income as a result of the following: Year Ended December 3 1 2017 January 1, 2017 January 3, 2016 Federal statutory rate 35.00 % 35.00 % 35.00 % Decrease in income taxes resulting from: State income taxes, net of federal benefit 3.20 3.73 3.82 Tax Act benefit (9.10 ) — — Excess tax benefits from share based payments (4.33 ) — — Other, net (1.86 ) (1.32 ) (1.44 ) Effective tax rate 22.91 % 37.41 % 37.38 % The effective income tax rate decreased to 22.91% in 2017 from 37.41% in 2016 primarily due to the enactment of the Tax Act as disclosed above and the recognition of excess tax benefits related to the exercise or vesting of equity based awards in the income tax provision resulting from the adoption of ASU 2016-09. See Note 3 “Significant Accounting Policies.” The effective income tax rate increased to 37.41% in 2016 from 37.38% in 2015 as a result of a slight decrease in tax credits and enhanced charitable food contribution deductions for 2016. Excess tax benefits associated with share-based payment awards are recognized as income tax expense or benefit in the income statement. The tax effects of exercised or vested awards are treated as discrete items in the reporting period in which they occur. The income tax benefits resulting from equity-based awards were $9.9 million for 2017 and are reflected as a reduction to the 2017 income tax provision. The income tax benefits resulting from equity-based awards were $3.7 million and $20.0 million for 2016 and 2015 and recorded in Additional Paid-in Capital under prior accounting guidance. Deferred Taxes Significant components of the Company’s deferred tax assets and deferred tax liabilities are as follows: As Of December 31, 2017 January 1, 2017 Deferred tax assets Employee benefits $ 20,332 $ 26,650 Tax credits 410 408 Lease related 61,489 84,744 Other accrued liabilities 5,605 9,986 Charitable contribution carryforward 12,800 15,928 Inventories and other 1,844 2,087 Total gross deferred tax assets 102,480 139,803 Deferred tax liabilities Depreciation and amortization (109,245 ) (137,230 ) Intangible assets (20,301 ) (21,021 ) Other — (815 ) Total gross deferred tax liabilities (129,546 ) (159,066 ) Net deferred tax (liability) / asset $ (27,066 ) $ (19,263 ) A valuation allowance is established for deferred tax assets if it is more likely than not that these items will either expire before the Company is able to realize their benefits, or that the realization of future deductions is uncertain. Management performs an assessment over future taxable income to analyze whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company has evaluated all available positive and negative evidence and believes it is probable that the deferred tax assets will be realized and has not recorded a valuation allowance against the Company’s deferred tax assets as of December 31, 2017 and January 1, 2017. The Company has state income tax credits of $0.4 million which are available to offset future state income taxes. These credits have no expiration date. The Company applies the authoritative accounting guidance under ASC 740 for the recognition, measurement, classification and disclosure of uncertain tax positions taken or expected to be taken in a tax return. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: As Of December 31 2017 January 1, 2017 January 3, 2016 Beginning balance $ 819 $ 737 $ 626 Additions based on tax positions related to the current year 95 104 114 Reductions for tax positions for prior years (120 ) (22 ) (3 ) Ending balance $ 794 $ 819 $ 737 At both December 31, 2017 and January 1, 2017, the Company had unrecognized tax benefits of $0.8 million (tax effected) that would impact the effective tax rate if recognized. The Company’s policy is to recognize accrued interest and penalties as a component of income tax expense. The Company anticipates an increase in the total amount of unrecognized tax benefits during the next twelve months related to depreciation for transaction cost allocation in the amount of $0.1 million. The Company files income tax returns with federal and state tax authorities within the United States. The statute of limitations for income tax examinations remains open for federal tax returns for tax years 2014 through 2016 and state tax returns for the tax years 2013 through 2016. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | 18. Related-Party Transactions A member of the Company’s board of directors is an investor in a company that is a supplier of coffee to the Company for resale. During 2017, 2016 and 2015, purchases from this company were $10.9 million, $9.8 million and $9.7 million, respectively. As of December 31, 2017, January 1, 2017 and January 3, 2016, the Company had no receivable recorded from this vendor. As of December 31, 2017, January 1, 2017 and January 3, 2016, the Company had recorded accounts payable due to this vendor of $0.7 million, $0.7 million and $0.7 million, respectively. On November 3, 2015, the Company entered into an agreement to purchase an airplane from this board member for $7.5 million. The transaction closed on December 17, 2015. The Company’s former Executive Chairman of the Board has been the chief executive officer, an equity investor, and lender to a technology supplier to the Company. During 2017, 2016 and 2015, purchases from this supplier and its predecessors were $6.3 million, $7.9 million and $6.5 million, respectively. As of December 31, 2017, January 1, 2017, January 3, 2016, the Company had no receivable recorded from this vendor. As of December 31, 2017, January 1, 2017, January 3, 2016, the Company had recorded accounts payable due to the supplier of $0.1 million, $0.3 million and $0.4 million, respectively. This Executive Chairman of the Board retired from our Board effective February 20, 2017. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 19. Commitments and Contingencies Operating Lease Commitments The Company’s leases include stores, office and warehouse buildings. These leases had an average remaining lease term of approximately nine years as of December 31, 2017. Rent expense charged to operations in 2017, 2016 and 2015 totaled $120.5 million, $104.8 million and $88.1 million, respectively. Future minimum lease obligations for operating leases with initial terms in excess of one year at December 31, 2017 are as follows: 2018 $ 142,620 2019 153,583 2020 153,241 2021 148,970 2022 140,957 Thereafter 856,826 Total payments $ 1,596,197 The Company has subtenant agreements under which it will receive rent as follows: 2018 $ 1,464 2019 1,208 2020 1,121 2021 882 2022 788 Thereafter 1,512 Total subtenant rent $ 6,975 Capital and Financing Lease Commitments The Company is committed under certain capital and financing leases for rental of buildings and equipment. These leases expire or become subject to renewal clauses at various dates from 2019 to 2034. As of December 31, 2017, future minimum lease payments required by all capital and financing leases during the initial lease term are as follows: Fiscal Year Capital Leases Financing Leases 2018 $ 2,069 $ 14,764 2019 1,912 14,344 2020 1,811 14,351 2021 1,811 13,656 2022 1,831 12,044 Thereafter 13,905 43,791 Total 23,339 112,950 Plus balloon payment (financing leases) — 94,041 Less amount representing interest (8,946 ) (92,258 ) Net present value of capital and financing lease obligations 14,393 114,733 Less current portion (925 ) (4,751 ) Total long-term $ 13,468 $ 109,982 The table above does not include $3.6 million of current financing lease obligations expected to pass sale-leaseback accounting during 2018. The final payment under the financing lease obligations is a noncash payment which represents the conveyance of the property to the buyer-lessor at the end of the lease term, described as balloon payment in the table above. Other 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 insurance and self-insurance obligations. Estimation of insurance and self-insurance liabilities require significant judgments, and actual claim settlements and associated expenses may differ from the Company’s current provisions for loss. See Note 14, “Self-Insurance Programs” for more information. In addition to our lease obligations, the Company maintains certain purchase commitments with various vendors to ensure its operational needs are fulfilled. As of December 31, 2017, such future purchase commitments consisted of $63.5 million. Commitments related to the Company’s business operations cover varying periods of time and are not individually significant. These commitments are expected to be fulfilled with no adverse consequences to the Company’s operations or financial conditions. Securities Action On March 4, 2016, a complaint was filed in the Superior Court for the State of Arizona against the Company and certain of its directors and officers on behalf of a purported class of purchasers of shares of the Company’s common stock in the Company’s underwritten secondary public offering which closed on March 10, 2015 (the “March 2015 Offering”). The complaint purports to state claims under Sections 11, 12 and 15 of the Securities Act of 1933, as amended, based on an alleged failure by the Company to disclose adequate information about produce price deflation in the March 2015 Offering documents. The complaint seeks damages on behalf of the purported class in an unspecified amount, rescission, and an award of reasonable costs and attorneys’ fees. After removal to federal court, the plaintiff sought remand, which the court granted in March 2017. The Company has appealed the order granting remand to the Ninth Circuit Court of Appeals. On May 25, 2017, the Company filed a Motion to Dismiss in the Superior Court for the State of Arizona, which the court granted in part and denied in part by order entered August 30, 2017. The Company answered the complaint on September 28, 2017. The Company will continue to defend this case vigorously, but it is not possible at this time to reasonably estimate the outcome of, or any potential liability from, the case. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Capital Stock | 20. Capital Stock Common stock As of December 31, 2017, 132,823,981 shares of the Company’s common stock were issued and outstanding, including 373,889 restricted shares, after the repurchase and retirement of 9,696,819 shares during 2017 and the repurchase and retirement of 13,242,483 shares during 2016, as described below. As of December 31, 2017, 5,809,319 shares of common stock are reserved for issuance under the 2013 Incentive Plan (see Note 25, “Equity-Based Compensation”). The following table outlines the options exercised in exchange for the issuance of shares of common stock during 2017, 2016, and 2015. Year Ended December 31, 2017 January 1, 2017 January 3, 2016 Options exercised 1,863,059 565,568 1,773,518 Share Repurchases On November 4, 2015, the Company’s board of directors authorized a $150 million common stock share repurchase program, which was completed during the second quarter of 2016. On September 6, 2016, the Company’s board of directors authorized a $250 million common stock share repurchase program, which was completed during the first quarter of 2017. On February 20, 2017, the Company’s board of directors authorized a new $250 million common stock share repurchase program. The following table outlines the share repurchase programs authorized by the Board, and the related repurchase activity and available authorization as of December 31, 2017 (in thousands). Effective date Expiration date Amount authorized Cost of repurchases Authorization available November 4, 2015 November 4, 2017 $ 150,000 $ 150,000 $ — September 6, 2016 December 31, 2017 250,000 250,000 — February 20, 2017 December 31, 2018 $ 250,000 $ 123,400 $ 126,600 The shares under the Company’s repurchase programs may be purchased on a discretionary basis from time to time prior to the applicable expiration date, subject to general business and market conditions and other investment opportunities, through open market purchases, privately negotiated transactions, or other means, including through Rule 10b5-1 trading plans. The Board’s authorization of the share repurchase programs does not obligate the Company to acquire any particular amount of common stock, and the repurchase programs may be commenced, suspended, or discontinued at any time. The Company has used borrowings under its Credit Facility to assist with the repurchase programs (see Note 12, “Long-Term Debt”). Share repurchase activity under the Company’s repurchase programs for the periods indicated was as follows (total cost in thousands): Year Ended December 31, 2017 January 1, 2017 Number of common shares acquired 9,696,819 13,242,483 Average price per common share acquired $ 20.98 $ 22.22 Total cost of common shares acquired $ 203,392 $ 294,265 Shares purchased under the Company’s repurchase programs were subsequently retired. Preferred Stock The Company’s board of directors is authorized, subject to limitations prescribed by Delaware law, to issue up to 10,000,000 shares of the Company’s preferred stock in one or more series, to establish from time to time the number of shares to be included in each series, to fix the designation, powers, preferences, and rights of the shares of each series and any of its qualifications, limitations, or restrictions, in each case without further action by the Company’s stockholders. The Company’s board of directors can also increase or decrease the number of shares of any series of preferred stock, but not below the number of shares of that series then outstanding. The Company’s board of directors may authorize the issuance of preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of the common stock. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring, or preventing a change in control of the Company and might adversely affect the market price of the Company’s common stock and the voting and other rights of the holders of the Company’s common stock. The Company has no current plan to issue any shares of preferred stock. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 21. 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. 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): Year Ended December 31, 2017 January 1, 2017 January 3, 2016 Basic net income per share: Net income $ 158,440 $ 124,306 $ 128,991 Weighted average shares outstanding 135,169 147,311 153,099 Basic net income per share $ 1.17 $ 0.84 $ 0.84 Diluted net income per share: Net income $ 158,440 $ 124,306 $ 128,991 Weighted average shares outstanding 135,169 147,311 153,099 Dilutive effect of equity-based awards: Assumed exercise of options to purchase shares 2,378 2,232 2,737 Restricted Stock Units 142 58 37 Restricted Stock Awards 119 17 — Performance Share Awards 76 35 4 Weighted average shares and equivalent shares outstanding 137,884 149,653 155,877 Diluted net income per share $ 1.15 $ 0.83 $ 0.83 The computation of diluted earnings per share for 2017 does not include 1,908,262 options, 10,364 RSUs, and 148,944 PSAs as those awards were antidilutive. The computation of diluted earnings per share for 2016 does not include 1,762,903 options, 14,404 RSUs, and 92,942 PSAs as those awards were antidilutive. The computation of diluted earnings per share for 2015 does not include 514,377 options as those options were antidilutive. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 22. Derivative Financial Instruments We have entered into an interest rate swap agreement in 2017 to manage our cash flow associated with variable interest rates. This forward contract has been designated and qualifies as a cash flow hedge, and its change in fair value is recorded as a component of other comprehensive income and reclassified into earnings in the same period or periods in which the forecasted transaction occurs. The forward contract consists of five cash flow hedges. To qualify as a hedge, we need to formally document, designate and assess the effectiveness of the transactions that receive hedge accounting. The notional dollar amount of the five outstanding swaps at December 31, 2017 was $250.0 million under which we pay a fixed rate and received a variable rate of interest (cash flow swap). The cash flow swaps hedge the change in interest rates on debt related to fluctuations in interest rates and each have a length of one year and mature annually from 2018 to 2022. These interest rate swaps have been designated and qualify as cash flow hedges and have met the requirements to assume zero ineffectiveness. We review the effectiveness of our hedging instruments on a quarterly basis. The counterparties to our derivative financial instruments are major financial institutions. We evaluate the credit ratings of the financial institutions and believe that credit risk is at an acceptable level. The following table summarizes the fair value of our derivative instruments (in thousands): Year Ended December 31, 2017 Year Ended January 1, 2017 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest rate swaps Other Accrued and Long-term Liabilities $ 1,064 - N/A - $ — The gain or loss on these derivative instruments is recognized in OCI, with the portion related to current period interest payments reclassified to “Interest expense” in the Statements of Income. The following table summarizes these gains and losses for 2017 and 2016 (in thousands): Year Ended December 31, 2017 Year Ended January 1, 2017 Consolidated Statements of Income Classification Interest Expense $ 9 $ — |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Comprehensive Income | 23. Comprehensive Income The following table presents the changes in accumulated other comprehensive income for the year ended December 31, 2017 (in thousands): Cash Flow Hedges Balance at January 1, 2017 — Other comprehensive loss before reclassifications (1,064 ) Amounts reclassified from accumulated other comprehensive loss 9 Total before tax (1,055 ) Tax benefit 271 Net current year other comprehensive loss (784 ) Balance at December 31, 2017 (784 ) Amounts reclassified from accumulated other comprehensive income (loss) are included within interest expense on the Consolidated Statement of Operations. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 24. 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 valuation of derivative instruments, impairment analysis of goodwill, intangible assets, and long-lived assets and in the valuation of store closure and exit costs. The following tables present our fair value hierarchy for our financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 and January 1, 2017 (in thousands): Year Ended December 31, 2017 Level 1 Level 2 Level 3 Total Long-term debt $ — $ 348,000 $ — $ 348,000 Interest rate swap liability $ — $ 1,064 $ — $ 1,064 Closed store reserves $ — $ — $ 811 $ 811 Total $ — $ 349,064 $ 811 $ 349,875 Year Ended January 1, 2017 Level 1 Level 2 Level 3 Total Long-term debt $ — $ 255,000 $ — $ 255,000 Interest rate swap liability $ — $ — $ — $ — Closed store reserves $ — $ — $ 1,083 $ 1,083 Total $ — $ 255,000 $ 1,083 $ 256,083 The Company’s interest rate swaps are considered Level 2 in the hierarchy and are valued using an income approach. Expected future cash flows are converted to a present value amount based on market expectations of the yield curve on floating interest rates, which is readily available on public markets. The determination of fair values of certain tangible and intangible assets for purposes of the Company’s goodwill impairment evaluation as described above is based upon Level 3 inputs. 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 is 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 comparable open market transactions, the fair value of the long-term debt approximated carrying value as of December 31, 2017 and January 1, 2017. 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. |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity-Based Compensation | 25. 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 initial public offering and replaced the 2011 Option Plan (as defined below) (except with respect to outstanding options under the 2011 Option Plan). 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. The Company granted to certain officers and team members the following awards during 2015, under the 2013 Incentive Plan: Grant Date Award Type Shares of common stock Exercise Price Grant date fair value March 11, 2015 Options 277,833 $ 34.33 $ 9.42 RSUs 87,394 — $ 34.33 PSAs 71,753 — $ 34.33 May 21, 2015 Options 14,492 $ 30.30 $ 8.28 RSUs 3,896 — $ 30.30 August 11, 2015 Options 2,138,899 $ 20.98 $ 5.79 RSUs 5,660 — $ 20.98 November 10, 2015 Options 4,431 $ 23.26 $ 6.77 . RSUs 1,370 — $ 23.26 The options vest ratably over a period of 12 quarters (three years) and the RSUs vest either one-third each year for three years or one-half each year for two years. The options expire seven years from grant date. The PSAs are described below. T he Company granted to certain officers and team members the following awards during 2016, under the 2013 Incentive Plan: Grant Date Award Type Shares of common stock Exercise Price Grant date fair value March 4, 2016 Options 318,156 $ 28.21 $ 8.59 RSUs 213,767 — $ 28.21 PSAs 92,942 — $ 28.21 April 11, 2016 Options 4,627 $ 27.69 $ 8.32 RSUs 1,335 — $ 27.69 May 9, 2016 RSUs 14,404 — $ 26.65 May 23, 2016 Options 419,935 $ 24.48 $ 6.54 RSAs 217,852 — $ 24.48 August 18, 2016 RSUs 7,499 — $ 22.44 The options vest ratably one-third each year for three years and the RSUs vest either one-third each year for three years or one-half each year for two years for team members. RSUs granted to independent members of its board of directors cliff vest in one year. The options expire seven years from grant date. The PSAs and RSAs are described below. The Company granted to certain officers and team members the following awards during 2017, under the 2013 Incentive Plan: Grant Date Award Type Shares of common stock Exercise Price Grant date fair value March 3, 2017 RSUs 323,687 — $ 18.11 RSAs 288,746 — $ 18.11 PSAs 148,944 — $ 18.11 March 27, 2017 RSUs 1,719 — $ 22.54 May 12, 2017 RSUs 21,820 — $ 23.89 August 11, 2017 RSUs 10,630 — $ 24.14 November 10, 2017 RSUs 2,586 — $ 20.80 The RSUs vest either one-third each year for three years or one-half each year for two years for team members. RSUs granted to independent members of its board of directors cliff vest in one year. The PSAs and RSAs are described below. 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. As of December 31, 2017, 5,809,319 shares of common stock are reserved for issuance under the 2013 Incentive Plan. 2011 Option Plan In May 2011, the Company adopted the Sprouts Farmers Markets, LLC Option Plan (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. Stock Options In the event of a change in control as defined in the award agreements issued under the 2013 Incentive Plan and in the 2011 Option Plan, all options and awards issued prior to 2015 become immediately vested and exercisable. For grants issued in and subsequent to 2015, the options and awards only become immediately vested in the event of a change in control (as defined in the applicable team member award agreement) if the grants are not continued or assumed by the acquirer on a substantially equivalent basis. If the options and awards continue or are assumed on a substantially equivalent basis, but employment is terminated by the Company or an acquirer without cause or by the team member for good reason (as such terms are defined in the applicable team member award agreement) within 24 months following the change in control, such options or awards will become immediately vested upon such termination. Under all other scenarios, the awards continue to vest per the schedule outlined in the applicable team member award agreement. Shares issued for option exercises are newly issued shares. There were no options granted during 2017. The estimated fair values of options granted during 2016 and 2015 range from $5.79 to $9.42, and were calculated using the following assumptions: 2017 2016 2015 Dividend yield - 0.00 % 0.00 % Expected volatility - 33.92% 30.61% to 32.51% Risk free interest rate - 1.18% to 1.32% 1.44% to 1.67% Expected term, in years - 3.53 to 4.50 4.31 The grant date weighted average fair value of the 0.5 million options issued but not vested as of December 31, 2017 was $7.25. The grant date weighted average fair value of the 1.2 million options issued but not vested as of January 1, 2017 was $7.02. The grant date weighted average fair value of the 2.1 million options issued but not vested as of January 3, 2016 was $6.32. The following table summarizes grant date weighted average fair value of options granted and options forfeited: Year Ended December 31, 2017 January 1, 2017 January 3, 2016 Grant date weighted average fair value of options granted $ — $ 7.43 $ 6.22 Grant date weighted average fair value of options forfeited $ 9.66 $ 8.60 $ 5.36 Expected volatility is calculated based upon historical volatility data from a group of comparable companies and the Company over a timeframe consistent with the expected life of the awards. The expected term is estimated based on the expected period that the options are anticipated to be outstanding after initial grant until exercise or expiration based upon various factors including the contractual terms of the awards and vesting schedules. The expected risk-free rate is based on the U.S. Treasury yield curve rates in effect at the time of the grant using the term most consistent with the expected life of the award. Dividend yield was estimated at zero as the Company does not anticipate making regular future distributions to stockholders. The total intrinsic value of options exercised was $31.6 million, $12.3 million, and $53.4 million for 2017, 2016, and 2015, respectively. The following table summarizes option activity during 2017: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value Outstanding at January 1, 2017 6,757,358 $ 12.57 Granted — — Forfeited (204,357 ) 35.08 Exercised (1,863,059 ) 4.99 $ 31,627 Outstanding at December 31, 2017 4,689,942 14.60 2.61 $ 51,363 Exercisable—December 31, 2017 4,225,908 13.43 2.37 $ 50,970 Vested/Expected to vest—December 31, 2017 4,689,942 $ 14.60 2.61 $ 51,363 RSUs In the event of a change in control as defined in the award agreements issued under the 2013 Incentive Plan, all RSUs granted prior to 2015 become immediately vested. RSUs granted in and subsequent to 2015 only become immediately vested in the event of a change in control (as defined in the applicable team member award agreement) if the awards are not continued or assumed by the acquirer on a substantially equivalent basis. If the awards continue or are assumed on a substantially equivalent basis, but employment is terminated by the Company or an acquirer without cause or by the team member for good reason (as such terms are defined in the applicable team member award agreement) within 24 months following the change in control, such awards will become immediately vested upon such termination. Under all other scenarios, the awards continue to vest per the schedule outlined in the applicable team member award agreement. Shares issued for RSU vesting are newly issued shares. The estimated fair value of RSUs granted during 2017 and 2016 range from $18.11 to $28.21, and were calculated based on the closing price on the grant date. The following table summarizes the weighted average grant date fair value of RSUs awarded during 2017, 2016, and 2015: Year Ended December 31, 2017 January 1, 2017 January 3, 2016 RSUs awarded $ 18.68 $ 27.93 $ 33.25 The following table summarizes RSU activity during 2017: Number of RSUs Weighted Average Grant Date Fair Value Outstanding at January 1, 2017 274,457 $ 29.47 Awarded 360,442 18.68 Released (137,560 ) 30.01 Forfeited (48,692 ) 23.21 Outstanding at December 31, 2017 448,647 $ 21.31 PSAs PSAs granted in March 2015 were earned based on the Company’s achievement of certain earnings per share performance targets during 2015. Such PSAs vest 50% on the second anniversary of the grant date (2017), and 50% on the third anniversary of the grant date (2018). PSAs granted in March 2016 are subject to the Company achieving certain earnings before interest and taxes (“EBIT”) performance targets on an annual and cumulative basis over a three-year performance period, as well as additional time-vesting conditions. The EBIT target for each of the three years during the performance period is based on a percentage increase over the previous year’s actual EBIT, with each annual performance tranche measured independently of the previous and next tranche. Cumulative performance is based on the aggregate annual performance and is measured against a cumulative performance target. Payout of the performance shares will either be 0% or range from 50% to 150% of the target number of shares granted, depending upon goal achievement. If the performance conditions are met, the applicable number of performance shares is subject to cliff vesting on the third anniversary of the grant date (March 2019). PSAs granted in March 2017 are subject to the Company achieving certain earnings per share performance targets during 2017. The criteria is based on a range of performance targets in which grantees may earn between 10% and 150% of the base number of awards granted. If the performance conditions are met, the applicable number of performance shares will vest 50% on the second anniversary of the grant date (2019) and 50% on the third anniversary of the grant date (2020). The PSAs only become immediately vested in the event of a change in control (as defined in the applicable team member award agreement) if the awards are not continued or assumed by the acquirer on a substantially equivalent basis. If the awards continue or are assumed on a substantially equivalent basis, but employment is terminated by the Company or an acquirer without cause or by the team member for good reason (as such terms are defined in the applicable team member award agreement) within 24 months following the change in control, such awards will become immediately vested upon such termination. Under all other scenarios, the awards continue to vest per the schedule outlined in the applicable team member award agreement. Shares issued for PSA vesting are newly issued shares. The estimated fair value of each performance share granted pursuant to PSAs during 2017 is $18.11, and was calculated based on the closing price on the grant date. The total grant date fair value of PSAs granted during 2017 was $2.7 million. The total grant date fair value of PSAs vested during 2017 was $0.7 million. The total grant date fair value of performance shares forfeited during 2017 was $0.8 million. The total grant date fair value of the 0.2 million PSAs issued but not released as of December 31, 2017 was $5.2 million. Subsequent to December 31, 2017, the Company’s board of directors determined that the maximum level of the 2017 performance target was met, and accordingly, 150% of the performance shares will be granted. The total grant date fair value of PSAs granted during 2016 was $2.6 million. There were no PSAs released during 2016. The total grant date fair value of performance shares forfeited during 2016 was $0.1 million. The total grant date fair value of the 0.1 million PSAs issued but not released as of January 1, 2017 was $2.6 million. During February 2017, the Company’s board of directors determined that the performance targets for the 2016 tranche were not met and 30,984 performance shares were not earned. During February 2018, the Company’s board of directors determined that the performance targets for the 2017 tranche were not met and an additional 30,980 performance shares were not earned. The total grant date fair value of PSAs granted during 2015 was $2.5 million. There were no PSAs released during 2015. The total grant date fair value of PSAs forfeited during 2015 was $0.1 million. The total grant date fair value of the 0.1 million PSAs issued but not released as of January 3, 2016 was $2.4 million. Subsequent to January 3, 2016, the Company’s board of directors determined that the performance targets were met and 0.1 million performance shares were earned and remained subject to time-vesting restrictions. The following table summarizes PSA activity during 2017: Number of PSAs Weighted Average Grant Date Fair Value Outstanding at January 1, 2017 158,936 30.75 Awarded 148,944 18.11 Released (21,050 ) 34.33 Forfeited (24,349 ) 34.33 PSAs not earned (30,984 ) 28.21 Outstanding at December 31, 2017 231,497 22.26 RSAs The fair value of RSAs is based on the closing price of the Company’s common stock on the grant date. RSAs either vest ratably over a seven quarter period, beginning on December 31, 2016 or cliff vest on June 30, 2018 or vest annually over three years. The RSAs only become immediately vested in the event of a change in control (as defined in the applicable team member award agreement) if the awards are not continued. If the awards continue, but employment is terminated by the Company or an acquirer without cause or by the team member for good reason (as such terms are defined in the applicable team member award agreement) within 24 months following the change in control, such awards will become immediately vested upon such termination. Under all other scenarios, the awards continue to vest per the schedule outlined in the applicable team member award agreement. Shares issued for RSA vesting are newly issued shares. The estimated fair values of RSAs granted during 2017 is $18.11 per share of restricted stock, and was calculated based on the closing price on the grant date. The total grant date fair value of RSAs granted during 2017 was $5.2 million. The total grant date fair value of shares of restricted stock released upon vesting during 2017 was $3.0 million. There were no RSAs forfeited during 2017. The total grant date fair value of the 352,847 shares of restricted stock issued but not released as of December 31, 2017 was $6.8 million. The following table summarizes RSA activity during 2017: Number of RSAs Weighted Average Grant Date Fair Value Outstanding at January 1, 2017 187,101 $ 24.48 Awarded 288,746 18.11 Released (123,000 ) 24.48 Forfeited — — Outstanding at December 31, 2017 352,847 $ 19.27 Equity-Based Compensation Expense Equity-based compensation expense was as follows: Year Ended December 31, 2017 January 1, 2017 January 3, 2016 Cost of sales, buying and occupancy $ 1,039 $ 965 $ 681 Direct store expenses 1,444 1,345 1,103 Selling, general and administrative expenses 11,738 11,089 6,234 Total equity-based compensation expense $ 14,221 $ 13,399 $ 8,018 The Company recognized income tax benefits of $5.6 million, $5.2 million and $3.1 million for 2017, 2016, and 2015, respectively. As of December 31, 2017, total unrecognized compensation expense and remaining weighted average recognition period related to outstanding equity-based awards were as follows: Unrecognized compensation expense Remaining weighted average recognition period Options $ 2,529 0.8 RSUs 5,485 1.4 PSAs 2,692 1.4 RSAs 5,040 1.9 Total unrecognized compensation expense at December 31, 2017 $ 15,746 During 2017, 2016 and 2015, the Company received $9.3 million, $2.7 million and $6.6 million in cash proceeds from the exercise of options, respectively. During 2017, 2016 and 2015, the Company recorded $9.9 million, $3.7 million and $20.0 million of excess tax benefits from the exercise of options, respectively. Equity Award Restructuring In connection with the appointments of the Company’s Chief Executive Officer and President & Chief Operating Officer in August 2015, the Compensation Committee of the Company’s Board of Directors approved a grant of stock options to purchase 1,200,000 and 500,000 shares of the Company’s common stock at an exercise price of $20.98 per share to these officers, respectively (the “August 2015 Options”) pursuant to the 2013 Incentive Plan. The August 2015 Options, taken together with other options granted under the 2013 Incentive Plan to such officers during 2015, exceeded the limit of 500,000 shares which may be granted pursuant to stock options and stock appreciation rights per calendar year to each participant under the 2013 Incentive Plan by 733,439 shares in the case of the Company’s Chief Executive Officer and 33,439 shares in the case of the Company’s President & Chief Operating Officer (the “Excess Options”). Accordingly, the Company has determined, and these officers have acknowledged, that the grants of the Excess Options were null and void. In order to satisfy the original intent with respect to these individuals’ compensation, on May 23, 2016, the Compensation Committee granted to the Company’s Chief Executive Officer and President & Chief Operating Officer under the 2013 Incentive Plan options to purchase 386,496 and 33,439 shares of the Company’s common stock at an exercise price of $24.48 per share, respectively, and 215,251 and 2,601 RSAs, respectively. The Company recognized compensation expense of $3.8 million during the year ended December 31, 2017 related to the options and RSAs granted. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 26. Subsequent Events Subsequent to December 31, 2017, and through February 20, 2018, the Company repurchased an additional 1.2 million shares of common stock for $30.4 million. The Company borrowed an additional $3.0 million under its Credit Facility that was utilized in these repurchases, and made a $10.0 million principal payment, resulting in total outstanding debt under the Credit Facility of $341 million as of February 20, 2018. On February 20, 2018, the Company’s board of directors authorized a new $350 million share repurchase program for its common stock. The shares may be purchased on a discretionary basis from time to time through December 31, 2019, subject to general business and market conditions and other investment opportunities, through open market purchases, privately negotiated transactions, or other means, including through Rule 10b5-1 trading plans. |
Significant Accounting Polici35
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Fiscal Years | Fiscal Years The Company reports its results of operations on a 52- or 53-week fiscal calendar ending on the Sunday closest to December 31. Fiscal year 2017 ended on December 31, 2017 and included 52-weeks. Fiscal year 2016 ended on January 1, 2017 and included 52-weeks, while fiscal year 2015 ended on January 3, 2016 and included 53-weeks. Fiscal years 2017, 2016, and 2015 are referred to as 2017, 2016, and 2015. |
Significant Accounting Estimates | Significant Accounting Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. Such estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company’s critical accounting estimates include, but are not limited to: inventory valuations, lease assumptions, sublease assumptions for closed stores, self-insurance reserves, goodwill and intangible assets, impairment of long-lived assets, fair values of equity-based awards and derivatives, and income taxes. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid instruments with an original maturity of three months or less to be cash equivalents. The Company’s cash and cash equivalents are maintained at financial institutions in the United States of America. Deposits in transit includes sales through the end of the period, the majority of which were paid with credit and debit cards and settle within a few days of the sales transactions. The amounts due from banks for these transactions at each reporting date were as follows: As Of December 31, 2017 January 1, 2017 Due from banks for debit and credit card transactions $ 51,825 $ 43,015 |
Accounts Receivable | Accounts Receivable Accounts receivable generally represent billings to vendors for earned rebates, advertising and other items and landlords for tenant allowances. Accounts receivable also represent receivables from the Company’s insurance carrier for payments expected to be made in excess of self-insured retentions. When a specific account is determined uncollectible, the net recognized receivable is written off. |
Inventories | Inventories Inventories consist of merchandise purchased for resale, which are stated at the lower of cost or net realizable value. The cost method is used for warehouse and store perishable department inventories by assigning costs to each of these items based on a first-in, first-out (FIFO) basis (net of vendor discounts). The Company’s non-perishable inventory is valued at the lower of cost or market using weighted averaging, the use of which approximates the FIFO method. The Company believes that all inventories are saleable and no allowances or reserves for obsolescence were recorded as of December 31, 2017 and January 1, 2017. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation and amortization. Expenditures for major additions and improvements to facilities are capitalized, while maintenance and repairs are charged to expense as incurred. When property is retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of operations. Depreciation expense, which includes the amortization of assets recorded under capital and financing leases, is computed using the straight-line method over the estimated useful lives of the individual assets. Leasehold improvements and assets under capital and financing leases are amortized over the shorter of the lease term to which they relate, or the estimated useful life of the asset. Terms of leases used in the determination of estimated useful lives may include renewal options if the exercise of the renewal option is determined to be reasonably assured. The following table includes the estimated useful lives of certain of our asset classes: Computer hardware and software 3 to 5 years Furniture, fixtures and equipment 7 to 20 years Leasehold improvements up Buildings 40 years Store development costs, which include costs associated with the selection and procurement of real estate sites, are also included in property and equipment. These costs are included in leasehold improvements and are amortized over the remaining lease term of the successful sites with which they are associated. |
Closed Store Reserve | Closed Store Reserve The Company recognizes a reserve for future operating lease payments and other occupancy costs associated with facilities that are no longer being utilized in its current operations. The reserve is recorded based on the present value of the remaining noncancelable lease payments and estimates of other occupancy costs after the cease use date, less an estimate of subtenant income. If subtenant income is expected to be higher than the lease payments, no accrual is recorded. Lease payments and other occupancy costs included in the closed store reserve are expected to be paid over the remaining terms of the respective leases. Adjustments to the closed store reserve relate primarily to changes in actual or estimated subtenant income and actual lease payments and other occupancy costs from original estimates. Adjustments are made for changes in estimates in the period in which the change becomes known considering timing of new information regarding the market, subleases or other lease updates. Adjustments in the closed store reserves are recorded in “store closure and other costs” in the accompanying consolidated statements of operations. See Note 16, “Closed Store Reserves.” |
Self-Insurance Reserves | Self-Insurance Reserves The Company uses a combination of insurance and self-insurance programs to provide for costs associated with general liability, workers’ compensation and team member health benefits. Liabilities for self-insurance reserves are estimated through consideration of various factors, which include historical claims experience, demographic factors, severity factors and other actuarial assumptions. Amounts expected to be recovered from insurance companies are included in the liability, with a corresponding amount recorded in accounts receivable. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the cost of acquired businesses in excess of the fair value of assets and liabilities acquired. The Company’s indefinite-lived intangible assets consist of trade names related to “Sprouts Farmers Market” and liquor licenses. The Company also holds intangible assets with finite useful lives, consisting of favorable and unfavorable leasehold interests and the “Sunflower Farmers Market” trade name. Goodwill is evaluated for impairment on an annual basis or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company’s impairment evaluation of goodwill consists of a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company’s qualitative assessment indicates it is more likely than not that the estimated fair value of a reporting unit exceeds its carrying value, no further analysis is required and goodwill is not impaired. Otherwise, the Company follows a two-step quantitative goodwill impairment test to determine if goodwill is impaired. The first step of the quantitative goodwill impairment test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of the Company’s reporting unit exceeds its carrying value, no further analysis or impairment of goodwill is required. If the carrying value of the Company’s reporting unit exceeds its fair value, the fair value of the reporting unit would be allocated to the reporting unit’s assets and liabilities based on the relative fair value, with goodwill written down to its implied fair value, if necessary. Indefinite-lived assets are evaluated for impairment on an annual basis or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company’s impairment evaluation for its indefinite-lived intangible assets consists of a qualitative assessment similar to that for goodwill. If the Company’s qualitative assessment indicates it is more likely than not that the estimated fair value of an indefinite-lived intangible asset exceeds its carrying value, no further analysis is required and the asset is not impaired. Otherwise, the Company compares the estimated fair value of the asset to its carrying amount with an impairment loss recognized for the amount, if any, by which carrying value exceeds estimated fair value. The Company can elect to bypass the qualitative assessments approach for goodwill and indefinite-lived intangible assets and proceed directly to the quantitative assessments for goodwill or any indefinite-lived intangible assets in any period. The Company has determined its business consists of a single reporting unit, healthy grocery stores. When applying the quantitative test, the Company determines the fair value of its reporting unit using the income approach methodology of valuation that includes the discounted cash flow method as well as other generally accepted valuation methodologies. We have had no goodwill impairment charges for the past three fiscal years. See Note 7, “Intangible Assets” and Note 8, “Goodwill” for further discussion. The trade name related to “Sunflower Farmers Market” meets the definition of a defensive intangible asset and is amortized on a straight-line basis over an estimated useful life of 10 years from the date of its acquisition by the Company. Favorable and unfavorable leasehold interests are amortized on a straight-line basis over the lease term. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company assesses its long-lived assets, including property and equipment and finite-lived intangible assets, for potential impairment each quarter based on whether certain triggering events have occurred or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. These events include current period losses combined with a history of losses or a projection of continuing losses, a significant decrease in the market value of an asset or a significant negative industry or economic trend. The Company groups and evaluates long-lived assets for impairment at the individual store level, which is the lowest level at which independent identifiable cash flows are available. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by that asset. If impairment is indicated, a loss is recognized for any excess of the carrying value over the estimated fair value of the asset group. The fair value is estimated based on the discounted future cash flows or comparable market values, if available. The Company did not record any impairment loss during 2017, 2016 or 2015. |
Deferred Financing Costs | Deferred Financing Costs The Company capitalizes certain fees and costs incurred in connection with the issuance of debt. Deferred financing costs are amortized to interest expense over the term of the debt using the effective interest method. For the Credit Facility and Former Credit Facility (as defined in Note 12, “Long-Term Debt”), deferred financing costs are amortized on a straight-line basis over the term of the facility. Upon prepayment, redemption or conversion of debt, the Company accelerates the recognition of an appropriate amount of financing costs as loss on extinguishment of debt. The current and noncurrent portions of deferred financing costs are included in prepaid expenses and other current assets and other assets, respectively, in the accompanying consolidated balance sheets. |
Operating Leases | Operating Leases The Company leases certain stores, warehouse facilities and administrative offices under operating leases. Incentives received from lessors are deferred and recorded as a reduction of rental expense over the lease term using the straight-line method. The current portion of unamortized lease incentives is included in other accrued liabilities and the noncurrent portion is included in other long-term liabilities in the accompanying consolidated balance sheets. Store lease agreements generally include rent abatements and rent escalation provisions and may include contingent rent provisions based on a percentage of sales in excess of specified levels. The Company recognizes escalations of minimum rents and/or abatements as deferred rent and amortizes these balances on a straight-line basis over the term of the lease. For lease agreements that require the payment of contingent rents based on a percentage of sales above stipulated minimums, the Company begins accruing an estimate for contingent rent when it is determined that it is probable the specified levels of sales in excess of the stipulated minimums will be reached during the year. The Company expensed $1.9 million, $1.8 million and $1.8 million for the years ended December 31, 2017, January 1, 2017 and January 3, 2016, respectively, for contingent rent. |
Financing Lease Obligations | Financing Lease Obligations Financing lease obligations are recorded for store building leases in which the Company was deemed to be the owner during the construction period under lease accounting guidance. Further, each lease contains provisions indicating continuing involvement with the property at the end of the construction period, which include either an affiliate guaranty or contingent collateral. As a result, in accordance with applicable accounting guidance, buildings and related assets subject to the leases are reflected on the Company’s balance sheets and depreciated over their remaining useful lives. The present value of the lease payments associated with these buildings is recorded as financing lease obligations. Monthly lease payments are allocated between the land element of the lease (which is accounted for as an operating lease) and the financing obligation. The financing obligation is amortized using the effective interest method and the interest rate is determined in accordance with the requirements of sale-leaseback accounting. Lease payments less the portion allocated to the land element of the lease and that portion considered to be interest expense decrease the financing liability. At the end of the initial lease term, should the Company decide not to renew the lease, the net book value of the asset and the corresponding financing obligation would be reversed. The outflows from the construction of the buildings are classified as investing activities, and the outflows associated with the financing obligations principal payments and inflows from the associated financing proceeds are classified as financing activities in the accompanying consolidated statements of cash flows. |
Fair Value Measurements | 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 valuation of derivative instruments, impairment analysis of goodwill, intangible assets, and long-lived assets and in the valuation of store closure and exit costs. 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. |
Derivative Financial Instruments | Derivative Financial Instruments We record derivatives at fair value. The designation of a derivative instrument as a hedge and its ability to meet the hedge accounting criteria determine how we reflect the change in fair value of the derivative instrument in our financial statements. A derivative qualifies for hedge accounting if, at inception, the derivative is expected to be highly effective in offsetting the underlying hedged cash flows and we fulfill the hedge documentation standards at the time we enter into the derivative contract. We designate our hedge based on the exposure we are hedging. For qualifying cash flow hedges, we record changes in fair value in other comprehensive income (OCI). We release the derivative’s gain or loss from OCI to match the timing of the underlying hedged item’s effect on earnings. We review the effectiveness of our hedging instruments quarterly. We recognize changes in the fair value for derivatives not designated as hedges or those not qualifying for hedge accounting in current period earnings. We discontinue hedge accounting for any hedge that is no longer evaluated to be highly effective. We do not enter into derivative financial instruments for trading or speculative purposes, and we monitor the financial stability and credit standing of our counterparties in these transactions. |
Equity-Based Compensation | Equity-Based Compensation The Company measures equity-based compensation cost at the grant date based on the fair value of the award and recognizes equity-based compensation cost as expense over the vesting period. As equity-based compensation expense recognized in the consolidated statements of operations is based on awards ultimately expected to vest, the amount of expense has been reduced for actual forfeitures as they occur. The Company uses the Black-Scholes option-pricing model to determine the grant date fair value for each option grant. The Black-Scholes option-pricing model requires extensive use of subjective assumptions. See Note 25, “Equity-Based Compensation” for a discussion of assumptions used in the calculation of fair values. Application of alternative assumptions could produce different estimates of the fair value of equity-based compensation and, consequently, the related amounts recognized in the accompanying consolidated statements of operations. The grant date fair value of restricted stock units (“RSUs”), performance share awards (“PSAs”), and restricted stock awards (“RSAs”) is based on the closing price per share of the Company’s stock on the grant date. The Company recognizes compensation expense for time-based awards on a straight-line basis and for performance-based awards on the graded-vesting method over the vesting period of the awards. |
Revenue Recognition | Revenue Recognition Revenue is recognized at the point of sale. Discounts provided to customers at the time of sale are recognized as a reduction in sales as the discounted products are sold. Sales taxes are not included in revenue. Proceeds from the sale of gift cards are recorded as a liability at the time of sale, and recognized as sales when they are redeemed by the customer. Beginning in 2015, the Company obtained sufficient historical redemption data for its gift card program to make a reasonable estimate of the ultimate redemption patterns and breakage rate. |
Cost of Sales, Buying and Occupancy | Cost of Sales, Buying and Occupancy Cost of sales, buying and occupancy includes the cost of inventory sold during the period, including the direct costs of purchased merchandise (net of discounts and allowances), distribution and supply chain costs, buying costs and supplies. Occupancy costs include store rental, property taxes, utilities, common area maintenance, amortization of favorable or unfavorable leasehold interests and property insurance. The Company recognizes vendor allowances and merchandise volume related rebate allowances as a reduction of inventories during the period when earned and reflects the allowances as a component of cost of sales, buying and occupancy as the inventory is sold. Our largest supplier accounted for approximately 34%, 33% and 31% of total purchases during 2017, 2016, and 2015, respectively. |
Direct Store Expenses | Direct Store Expenses Direct store expenses consist of store-level expenses such as salaries and benefits, related equity-based compensation, supplies, depreciation and amortization for buildings and store leasehold improvements, equipment and other store specific costs. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses Selling, general and administrative expenses primarily consist of salaries and benefits costs, related equity-based compensation, advertising, acquisition-related costs and corporate overhead. The Company charges third-parties to place advertisements in the Company’s in-store guide and circulars. The Company records rebates received from vendors in connection with cooperative advertising programs as a reduction to advertising costs when the allowance represents a reimbursement of a specific incremental and identifiable cost. Advertising costs are expensed as incurred. Advertising expense, net of rebates, was $42.3 million, $37.0 million and $32.0 million for 2017, 2016 and 2015, respectively. |
Store Pre-Opening Costs | Store Pre-Opening Costs Store pre-opening costs include rent expense during construction of new stores and costs related to new store openings, including costs associated with hiring and training personnel and other miscellaneous costs. Store pre-opening costs are expensed as incurred. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company’s deferred tax assets are subject to periodic recoverability assessments. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that more likely than not will be realized. Realization of the deferred tax assets is principally dependent upon achievement of projected future taxable income offset by deferred tax liabilities. Changes in recognition or measurement are reflected in the period in which the judgment occurs. The Company recognizes the effect of uncertain income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits as part of income tax expense. |
Share Repurchases | Share Repurchases The Company has elected to retire shares repurchased to date. Shares retired become part of the pool of authorized but unissued shares. The Company has elected to record purchase price of the retired shares in excess of par value directly as a reduction of retained earnings. |
Net Income per Share | Net Income per Share Basic net income per share is calculated by dividing net income by the weighted average number of shares outstanding during the fiscal period. Diluted net income per share is based on the weighted average number of shares outstanding, plus, where applicable, shares that would have been outstanding related to dilutive options, PSAs and RSUs. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and the unrealized gains or losses on derivative instruments that qualify for and have been designated as cash flow hedges, for all periods presented. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory.” ASU No. 2015-11 changes the measurement principle for inventory from the lower of cost or market to lower of cost and net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business; less reasonably predictable costs of completion, disposal and transportation. This guidance is effective for the Company for its fiscal year 2017. Adoption of the guidance took place prospectively during 2017, and the adoption did not have a material effect on the Company’s consolidated financial statements or disclosures. In March 2016, the FASB issued ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718).” This update involves several aspects of the accounting for share-based transactions, including the income tax consequences, classification of awards as either equity or liabilities, how to account for forfeitures, and classification on the statement of cash flows. The amendments in this update are effective for the Company for its fiscal year 2017. As a result of the adoption, the Company recognized excess tax benefits related to the exercise of options in its income tax provision during fiscal 2017 (see Note 17, “Income Taxes”). Prior to the adoption, these items were recorded in Additional Paid-in Capital. The Company has elected to prospectively apply the amendments related to classifying cash flows related to excess tax benefits as an operating activity. During 2017, excess tax benefits were classified as an operating activity on the consolidated statement of cash flows, along with other income tax cash flows. The Company has made a policy election to account for forfeitures as they occur. This election was adopted using a modified retrospective approach resulting in no cumulative effect on retained earnings at the beginning of the period. Prior to the adoption, forfeitures were accounted for using an estimated forfeiture rate. In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and hedging (Topic 815): Targeted improvements to accounting for hedging activities.” The amendments in this update expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of effects of the hedging instrument and the hedged item in the financial statements. The amendments also make certain targeted improvements to simplify the application of hedge accounting guidance and ease the administrative burden of hedge documentation requirements and assessing hedge effectiveness. The amendments in this update are effective for the Company for its fiscal year 2019, however, the Company has elected to early-adopt. Adoption of the guidance took place prospectively during 2017, and the adoption did not have a material effect on the Company’s consolidated financial statements or disclosures. |
Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted 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. Subsequent to the initial standards, the FASB has also issued several ASUs to clarify specific revenue recognition topics. This guidance will be effective for the Company for its fiscal year 2018, with early adoption permitted. The Company will adopt using the modified retrospective approach and does not expect this ASU to materially impact the Company’s consolidated financial statements. The most significant impact will be related to additional disclosures and the addition of a disaggregated revenue footnote. The disaggregated revenue footnote, as well as additional disclosures, will first be disclosed in the 2018 Form 10-Q for the first quarter. In February 2016, the FASB issued ASU No. 2016-02, “Leases (ASC 842).” ASU No. 2016-02 requires lessees to recognize a right-of-use asset and corresponding lease liability for all leases with terms greater than twelve months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. The new guidance also requires certain additional quantitative and qualitative disclosures. This guidance will be effective for the Company for its fiscal year 2019, with early adoption permitted, and the Company is currently evaluating the potential impact of this guidance. The adoption of this ASU is expected to result in a material increase to the Company’s consolidated balance sheets for right-of-use assets and lease liabilities. In March 2016, the FASB issued ASU No. 2016-04, “Liabilities-Extinguishments of Liabilities (Subtopic 405-20): Recognition of breakage for certain prepaid stored-value products.” ASU No. 2016-04 provides a narrow scope exception to the guidance in Subtopic 405-20 to require that stored-value breakage be accounted for consistently with the breakage guidance in Topic 606. The amendments in this update contain specific guidance for derecognition of prepaid stored-value product liabilities, thereby eliminating the current and potential future diversity. This guidance will be effective for the Company for its fiscal year 2018, with early adoption permitted. The Company does not expect this ASU to materially impact the Company’s consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This update provides clarifications on the cash flow classification for eight specific cash flow issues: debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (COLIs) (including bank-owned life insurance policies (BOLIs)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. The guidance will be effective for the Company for its fiscal year 2018, with early adoption permitted. The Company does not expect this ASU to materially impact the Company’s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” The amendments in this update eliminate the second step of the goodwill impairment test and provide that a n entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. The guidance will be effective for the Company for its fiscal year 2020, with early adoption permitted. The Company does not expect this ASU to materially impact the Company’s consolidated financial statements . In May 2017, the FASB issued ASU No. 2017-09, “Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting.” The amendments in this update provide guidance about which changes to the terms or conditions of a share-based award require an entity to apply modification accounting in Topic 718. The guidance will be effective for the Company for its fiscal year 2018, with early adoption permitted. The Company does not expect this ASU to materially impact the Company’s consolidated financial statements. No other new accounting pronouncements issued or effective during fiscal 2017 had, or are expected to have, a material impact on the Company’s consolidated financial statements. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Sales by as Perishable and Non-Perishable | The following is a breakdown of the Company’s perishable and non-perishable sales mix: 2017 2016 2015 Perishables 50.0 % 50.4 % 50.8 % Non-Perishables 50.0 % 49.6 % 49.2 % |
Significant Accounting Polici37
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Amounts Due from Banks | The amounts due from banks for these transactions at each reporting date were as follows: As Of December 31, 2017 January 1, 2017 Due from banks for debit and credit card transactions $ 51,825 $ 43,015 |
Estimated Useful Lives of Asset Classes | The following table includes the estimated useful lives of certain of our asset classes: Computer hardware and software 3 to 5 years Furniture, fixtures and equipment 7 to 20 years Leasehold improvements up Buildings 40 years |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Summary of Accounts Receivable | A summary of accounts receivable is as follows: As Of December 31, 2017 January 1, 2017 Vendors $ 15,355 $ 13,686 Landlords 4,290 2,583 Insurance 1,137 3,803 Other 5,111 5,156 Total $ 25,893 $ 25,228 |
Prepaid Expenses and Other Cu39
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Summary of Prepaid Expenses and Other Current Assets | A summary of prepaid expenses and other current assets is as follows: As Of December 31, 2017 January 1, 2017 Prepaid rent $ 14,785 $ 12,971 Prepaid expenses $ 9,354 $ 6,288 Income tax receivable — 2,148 Other current assets 454 462 Total $ 24,593 $ 21,869 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Summary of Property and Equipment, Net | A summary of property and equipment, net is as follows: As Of December 31, 2017 January 1, 2017 Land and Buildings $ 151,309 $ 130,821 Furniture, fixtures and equipment 491,990 400,724 Leasehold improvements 401,237 321,730 Construction in progress 52,100 49,263 Total property and equipment 1,096,636 902,538 Accumulated depreciation and amortization (383,605 ) (297,878 ) Property and equipment, net $ 713,031 $ 604,660 |
Summary of Leased Property and Equipment under Capital and Financing Lease Obligations | A summary of leased property and equipment under capital and financing lease obligations is as follows: As Of December 31, 2017 January 1, 2017 Capital Leases—Buildings Gross asset balance $ 16,745 $ 11,338 Accumulated depreciation (4,257 ) (3,133 ) Net $ 12,488 $ 8,205 Financing Leases Gross asset balance 151,599 135,946 Accumulated depreciation (17,941 ) (14,681 ) Net $ 133,658 $ 121,265 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Activity and Balances in Intangible Assets | A summary of the activity and balances in intangible assets is as follows: Balance at January 3, 2016 Additions (1) Balance at January 1, 2017 Gross Intangible Assets Indefinite-lived trade names $ 182,937 $ — $ 182,937 Indefinite-lived liquor licenses 2,023 — 2,023 Finite-lived trade names 1,800 — 1,800 Leasehold interests 18,300 473 18,773 Total intangible assets $ 205,060 $ 473 $ 205,533 Accumulated Amortization Finite-lived trade names $ (645 ) $ (180 ) $ (825 ) Leasehold interests (5,814 ) (1,286 ) (7,100 ) Total accumulated amortization $ (6,459 ) $ (1,466 ) $ (7,925 ) Balance at January 1, 2017 Additions Balance at December 31, 2017 Gross Intangible Assets Indefinite-lived trade names $ 182,937 $ — $ 182,937 Indefinite-lived liquor licenses 2,023 — 2,023 Finite-lived trade names 1,800 — 1,800 Leasehold interests 18,773 — 18,773 Total intangible assets $ 205,533 $ — $ 205,533 Accumulated Amortization Finite-lived trade names $ (825 ) $ (180 ) $ (1,005 ) Leasehold interests (7,100 ) (1,223 ) (8,323 ) Total accumulated amortization $ (7,925 ) $ (1,403 ) $ (9,328 ) (1) Additions during 2016 represent leasehold interests as a result of adjustments to the leases acquired in 2015 and a lease acquired in 2016. |
Summary of Future Amortization Associated with Net Carrying Amount of Finite-Lived Intangible Assets | Future amortization associated with the net carrying amount of finite-lived intangible assets is as follows: 2018 1,402 2019 1,386 2020 1,375 2021 1,339 2022 1,189 Thereafter 4,554 Total amortization $ 11,245 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Summary of Other Assets | A summary of other assets is as follows: As Of December 31, 2017 January 2017 Other assets 4,782 5,521 |
Accounts Payable Other Accrued
Accounts Payable Other Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables And Accruals [Abstract] | |
Summary of Accounts Payable Other Accrued Liabilities | A summary of other accrued liabilities is as follows: As Of December 31, 2017 January 1, 2017 Trade accounts payable $ 119,034 $ 115,326 Accrued occupancy related (CAM, property taxes, etc.) 21,766 14,650 Self-insurance reserves 19,714 19,161 Capital expenditures 16,409 18,884 Distribution centers 15,980 8,349 Gift cards 13,099 12,264 Income taxes payable 3,391 — Other 35,460 25,292 Total $ 244,853 $ 213,926 |
Accrued Salaries and Benefits (
Accrued Salaries and Benefits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables And Accruals [Abstract] | |
Summary of Accrued Salaries and Benefits | A summary of accrued salaries and benefits is as follows: As Of December 31, 2017 January 1, 2017 Bonuses 16,957 8,168 Payroll 14,906 $ 12,972 Vacation 12,281 10,633 Other 1,479 1,086 Total $ 45,623 $ 32,859 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | A summary of long-term debt is as follows: As Of Facility Maturity Interest December 31, 2017 January 1, 2017 Senior secured debt $450.0 million Credit Facility April 17, 2020 Variable $ 348,000 $ 255,000 Total debt 348,000 255,000 Long-term debt $ 348,000 $ 255,000 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Other Long-Term Liabilities | A summary of other long-term liabilities is as follows: As Of December 31, 2017 January 1, 2017 Unamortized lease incentives $ 60,942 $ 54,176 Deferred rent 28,791 24,581 Self-insurance reserves 22,756 22,399 Unfavorable leasehold interests 7,727 8,954 Other 10,424 6,090 Total $ 130,640 $ 116,200 |
Defined Contribution Plan (Tabl
Defined Contribution Plan (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Postemployment Benefits [Abstract] | |
Total Expense Recorded for Matching under Defined Contribution Plans | Total expense recorded for the matching under the Plan: Year Ended December 31, 2017 January 1, 2017 January 3, 2016 $ 4,067 $ 3,354 $ 2,656 |
Closed Store Reserves (Tables)
Closed Store Reserves (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring And Related Activities [Abstract] | |
Summary of Closed Store Reserve Activity | A summary of closed store reserve activity is as follows: As Of December 31, 2017 January 1, 2017 Beginning balance $ 1,083 $ 2,017 Additions — — Usage (492 ) (998 ) Adjustments 220 64 Ending balance $ 811 $ 1,083 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Provision | The income tax provision consists of the following: Year Ended December 31, 2017 January 1, 2017 January 3, 2016 U.S. Federal—current $ (31,667 ) $ (44,588 ) $ (51,322 ) U.S. Federal—deferred (6,551 ) (19,293 ) (15,155 ) U.S. Federal—total (38,218 ) (63,881 ) (66,477 ) State—current (7,337 ) (9,036 ) (9,619 ) State—deferred (1,523 ) (1,369 ) (906 ) State—total (8,860 ) (10,405 ) (10,525 ) Total provision $ (47,078 ) $ (74,286 ) $ (77,002 ) |
Tax Rate Reconciliation | Income tax provision differed from the amounts computed by applying the U.S. federal income tax rate to pretax income as a result of the following: Year Ended December 3 1 2017 January 1, 2017 January 3, 2016 Federal statutory rate 35.00 % 35.00 % 35.00 % Decrease in income taxes resulting from: State income taxes, net of federal benefit 3.20 3.73 3.82 Tax Act benefit (9.10 ) — — Excess tax benefits from share based payments (4.33 ) — — Other, net (1.86 ) (1.32 ) (1.44 ) Effective tax rate 22.91 % 37.41 % 37.38 % |
Components of Deferred Tax Assets and Deferred Tax Liabilities | Significant components of the Company’s deferred tax assets and deferred tax liabilities are as follows: As Of December 31, 2017 January 1, 2017 Deferred tax assets Employee benefits $ 20,332 $ 26,650 Tax credits 410 408 Lease related 61,489 84,744 Other accrued liabilities 5,605 9,986 Charitable contribution carryforward 12,800 15,928 Inventories and other 1,844 2,087 Total gross deferred tax assets 102,480 139,803 Deferred tax liabilities Depreciation and amortization (109,245 ) (137,230 ) Intangible assets (20,301 ) (21,021 ) Other — (815 ) Total gross deferred tax liabilities (129,546 ) (159,066 ) Net deferred tax (liability) / asset $ (27,066 ) $ (19,263 ) |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: As Of December 31 2017 January 1, 2017 January 3, 2016 Beginning balance $ 819 $ 737 $ 626 Additions based on tax positions related to the current year 95 104 114 Reductions for tax positions for prior years (120 ) (22 ) (3 ) Ending balance $ 794 $ 819 $ 737 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Obligations for Operating Leases | Future minimum lease obligations for operating leases with initial terms in excess of one year at December 31, 2017 are as follows: 2018 $ 142,620 2019 153,583 2020 153,241 2021 148,970 2022 140,957 Thereafter 856,826 Total payments $ 1,596,197 |
Schedule of Subtenant Agreements | The Company has subtenant agreements under which it will receive rent as follows: 2018 $ 1,464 2019 1,208 2020 1,121 2021 882 2022 788 Thereafter 1,512 Total subtenant rent $ 6,975 |
Schedule of Future Minimum Lease Payments Required by All Capital and Financing Leases | As of December 31, 2017, future minimum lease payments required by all capital and financing leases during the initial lease term are as follows: Fiscal Year Capital Leases Financing Leases 2018 $ 2,069 $ 14,764 2019 1,912 14,344 2020 1,811 14,351 2021 1,811 13,656 2022 1,831 12,044 Thereafter 13,905 43,791 Total 23,339 112,950 Plus balloon payment (financing leases) — 94,041 Less amount representing interest (8,946 ) (92,258 ) Net present value of capital and financing lease obligations 14,393 114,733 Less current portion (925 ) (4,751 ) Total long-term $ 13,468 $ 109,982 |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Options Exercised in Exchange for Issuance of Shares of Common Stock | The following table outlines the options exercised in exchange for the issuance of shares of common stock during 2017, 2016, and 2015. Year Ended December 31, 2017 January 1, 2017 January 3, 2016 Options exercised 1,863,059 565,568 1,773,518 |
Schedule of Share Repurchase Programs Authorized by Board and Related Repurchase Activity and Available Authorized | The following table outlines the share repurchase programs authorized by the Board, and the related repurchase activity and available authorization as of December 31, 2017 (in thousands). Effective date Expiration date Amount authorized Cost of repurchases Authorization available November 4, 2015 November 4, 2017 $ 150,000 $ 150,000 $ — September 6, 2016 December 31, 2017 250,000 250,000 — February 20, 2017 December 31, 2018 $ 250,000 $ 123,400 $ 126,600 |
Schedule of Share Repurchase Activity under Share Repurchase Programs | Share repurchase activity under the Company’s repurchase programs for the periods indicated was as follows (total cost in thousands): Year Ended December 31, 2017 January 1, 2017 Number of common shares acquired 9,696,819 13,242,483 Average price per common share acquired $ 20.98 $ 22.22 Total cost of common shares acquired $ 203,392 $ 294,265 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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): Year Ended December 31, 2017 January 1, 2017 January 3, 2016 Basic net income per share: Net income $ 158,440 $ 124,306 $ 128,991 Weighted average shares outstanding 135,169 147,311 153,099 Basic net income per share $ 1.17 $ 0.84 $ 0.84 Diluted net income per share: Net income $ 158,440 $ 124,306 $ 128,991 Weighted average shares outstanding 135,169 147,311 153,099 Dilutive effect of equity-based awards: Assumed exercise of options to purchase shares 2,378 2,232 2,737 Restricted Stock Units 142 58 37 Restricted Stock Awards 119 17 — Performance Share Awards 76 35 4 Weighted average shares and equivalent shares outstanding 137,884 149,653 155,877 Diluted net income per share $ 1.15 $ 0.83 $ 0.83 |
Derivative Financial Instrume53
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of Fair Value of Derivative Instruments | The following table summarizes the fair value of our derivative instruments (in thousands): Year Ended December 31, 2017 Year Ended January 1, 2017 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest rate swaps Other Accrued and Long-term Liabilities $ 1,064 - N/A - $ — |
Summary of Gains and Losses of Derivative Instruments | The gain or loss on these derivative instruments is recognized in OCI, with the portion related to current period interest payments reclassified to “Interest expense” in the Statements of Income. The following table summarizes these gains and losses for 2017 and 2016 (in thousands): Year Ended December 31, 2017 Year Ended January 1, 2017 Consolidated Statements of Income Classification Interest Expense $ 9 $ — |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income | The following table presents the changes in accumulated other comprehensive income for the year ended December 31, 2017 (in thousands): Cash Flow Hedges Balance at January 1, 2017 — Other comprehensive loss before reclassifications (1,064 ) Amounts reclassified from accumulated other comprehensive loss 9 Total before tax (1,055 ) Tax benefit 271 Net current year other comprehensive loss (784 ) Balance at December 31, 2017 (784 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present our fair value hierarchy for our financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 and January 1, 2017 (in thousands): Year Ended December 31, 2017 Level 1 Level 2 Level 3 Total Long-term debt $ — $ 348,000 $ — $ 348,000 Interest rate swap liability $ — $ 1,064 $ — $ 1,064 Closed store reserves $ — $ — $ 811 $ 811 Total $ — $ 349,064 $ 811 $ 349,875 Year Ended January 1, 2017 Level 1 Level 2 Level 3 Total Long-term debt $ — $ 255,000 $ — $ 255,000 Interest rate swap liability $ — $ — $ — $ — Closed store reserves $ — $ — $ 1,083 $ 1,083 Total $ — $ 255,000 $ 1,083 $ 256,083 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Estimated Fair Values of Options Granted | The estimated fair values of options granted during 2016 and 2015 range from $5.79 to $9.42, and were calculated using the following assumptions: 2017 2016 2015 Dividend yield - 0.00 % 0.00 % Expected volatility - 33.92% 30.61% to 32.51% Risk free interest rate - 1.18% to 1.32% 1.44% to 1.67% Expected term, in years - 3.53 to 4.50 4.31 |
Summary of Grant Date Weighted Average Fair Value of Options Granted and Options Forfeited | The following table summarizes grant date weighted average fair value of options granted and options forfeited: Year Ended December 31, 2017 January 1, 2017 January 3, 2016 Grant date weighted average fair value of options granted $ — $ 7.43 $ 6.22 Grant date weighted average fair value of options forfeited $ 9.66 $ 8.60 $ 5.36 |
Summary of Option Activity | The following table summarizes option activity during 2017: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value Outstanding at January 1, 2017 6,757,358 $ 12.57 Granted — — Forfeited (204,357 ) 35.08 Exercised (1,863,059 ) 4.99 $ 31,627 Outstanding at December 31, 2017 4,689,942 14.60 2.61 $ 51,363 Exercisable—December 31, 2017 4,225,908 13.43 2.37 $ 50,970 Vested/Expected to vest—December 31, 2017 4,689,942 $ 14.60 2.61 $ 51,363 |
Summary of Weighted Average Grant Date Fair Value of RSUs Awarded | The following table summarizes the weighted average grant date fair value of RSUs awarded during 2017, 2016, and 2015: Year Ended December 31, 2017 January 1, 2017 January 3, 2016 RSUs awarded $ 18.68 $ 27.93 $ 33.25 |
Summary of RSUs Activity | The following table summarizes RSU activity during 2017: Number of RSUs Weighted Average Grant Date Fair Value Outstanding at January 1, 2017 274,457 $ 29.47 Awarded 360,442 18.68 Released (137,560 ) 30.01 Forfeited (48,692 ) 23.21 Outstanding at December 31, 2017 448,647 $ 21.31 |
Summary of PSA Activity | The following table summarizes PSA activity during 2017: Number of PSAs Weighted Average Grant Date Fair Value Outstanding at January 1, 2017 158,936 30.75 Awarded 148,944 18.11 Released (21,050 ) 34.33 Forfeited (24,349 ) 34.33 PSAs not earned (30,984 ) 28.21 Outstanding at December 31, 2017 231,497 22.26 |
Summary of RSAs Activity | The following table summarizes RSA activity during 2017: Number of RSAs Weighted Average Grant Date Fair Value Outstanding at January 1, 2017 187,101 $ 24.48 Awarded 288,746 18.11 Released (123,000 ) 24.48 Forfeited — — Outstanding at December 31, 2017 352,847 $ 19.27 |
Summary of Equity-Based Compensation Expense | Equity-Based Compensation Expense Equity-based compensation expense was as follows: Year Ended December 31, 2017 January 1, 2017 January 3, 2016 Cost of sales, buying and occupancy $ 1,039 $ 965 $ 681 Direct store expenses 1,444 1,345 1,103 Selling, general and administrative expenses 11,738 11,089 6,234 Total equity-based compensation expense $ 14,221 $ 13,399 $ 8,018 |
Summary of Total Unrecognized Compensation Expense and Remaining Weighted Average Recognition Period Related to Outstanding Equity-Based Awards | As of December 31, 2017, total unrecognized compensation expense and remaining weighted average recognition period related to outstanding equity-based awards were as follows: Unrecognized compensation expense Remaining weighted average recognition period Options $ 2,529 0.8 RSUs 5,485 1.4 PSAs 2,692 1.4 RSAs 5,040 1.9 Total unrecognized compensation expense at December 31, 2017 $ 15,746 |
2013 Incentive Plan [Member] | |
Summary of Awards Granted to Officers and Team Members | The Company granted to certain officers and team members the following awards during 2015, under the 2013 Incentive Plan: Grant Date Award Type Shares of common stock Exercise Price Grant date fair value March 11, 2015 Options 277,833 $ 34.33 $ 9.42 RSUs 87,394 — $ 34.33 PSAs 71,753 — $ 34.33 May 21, 2015 Options 14,492 $ 30.30 $ 8.28 RSUs 3,896 — $ 30.30 August 11, 2015 Options 2,138,899 $ 20.98 $ 5.79 RSUs 5,660 — $ 20.98 November 10, 2015 Options 4,431 $ 23.26 $ 6.77 . RSUs 1,370 — $ 23.26 T he Company granted to certain officers and team members the following awards during 2016, under the 2013 Incentive Plan: Grant Date Award Type Shares of common stock Exercise Price Grant date fair value March 4, 2016 Options 318,156 $ 28.21 $ 8.59 RSUs 213,767 — $ 28.21 PSAs 92,942 — $ 28.21 April 11, 2016 Options 4,627 $ 27.69 $ 8.32 RSUs 1,335 — $ 27.69 May 9, 2016 RSUs 14,404 — $ 26.65 May 23, 2016 Options 419,935 $ 24.48 $ 6.54 RSAs 217,852 — $ 24.48 August 18, 2016 RSUs 7,499 — $ 22.44 The Company granted to certain officers and team members the following awards during 2017, under the 2013 Incentive Plan: Grant Date Award Type Shares of common stock Exercise Price Grant date fair value March 3, 2017 RSUs 323,687 — $ 18.11 RSAs 288,746 — $ 18.11 PSAs 148,944 — $ 18.11 March 27, 2017 RSUs 1,719 — $ 22.54 May 12, 2017 RSUs 21,820 — $ 23.89 August 11, 2017 RSUs 10,630 — $ 24.14 November 10, 2017 RSUs 2,586 — $ 20.80 |
Organization and Description 57
Organization and Description of Business - Additional Information (Detail) | Dec. 31, 2017StoreState |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Operating stores | Store | 285 |
Number of states entity operates | State | 15 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017Segment | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of reportable segment | 1 |
Number of operating segment | 1 |
Basis of Presentation - Summary
Basis of Presentation - Summary of Sales by as Perishable and Non-Perishable (Detail) - Sales Revenue, Goods, Net [Member] - Product Concentration Risk [Member] | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Perishables [Member] | |||
Revenue from External Customer [Line Items] | |||
Percentage of perishable and non-perishable sales mix | 50.00% | 50.40% | 50.80% |
Non-Perishables [Member] | |||
Revenue from External Customer [Line Items] | |||
Percentage of perishable and non-perishable sales mix | 50.00% | 49.60% | 49.20% |
Significant Accounting Polici60
Significant Accounting Policies - Additional Information (Detail) - USD ($) | May 29, 2012 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 |
Summary Of Significant Accounting Policy [Line Items] | ||||
Fiscal period duration | 364 days | 364 days | 371 days | |
Impairment, goodwill | $ 0 | $ 0 | $ 0 | |
Impairment, long lived assets | 0 | 0 | 0 | |
Contingent rent expense | 1,900,000 | 1,800,000 | 1,800,000 | |
Advertising expense, net of rebates | $ 42,300,000 | $ 37,000,000 | $ 32,000,000 | |
Percentage of income tax to be realized | 50.00% | |||
Cost of Goods, Total [Member] | Supplier Concentration Risk [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Percentage of supplier accountability on total purchase | 34.00% | 33.00% | 31.00% | |
Trade name [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Weighted average useful life | 4 years 4 months 24 days | |||
Sunflower Farmers Markets, Inc. [Member] | Trade name [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Weighted average useful life | 10 years | |||
Inventory Valuation Reserve [Member] | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Allowances or reserves for inventories | $ 0 | $ 0 |
Significant Accounting Polici61
Significant Accounting Policies - Amounts Due from Banks (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Cash And Cash Equivalents [Abstract] | ||
Due from banks for debit and credit card transactions | $ 51,825 | $ 43,015 |
Significant Accounting Polici62
Significant Accounting Policies - Estimated Useful Lives of Asset Classes (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Computer hardware and software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Computer hardware and software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Furniture, fixtures and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
Furniture, fixtures and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 20 years |
Leasehold improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 15 years |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 40 years |
Accounts Receivable - Summary o
Accounts Receivable - Summary of Accounts Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Receivables [Abstract] | ||
Vendors | $ 15,355 | $ 13,686 |
Landlords | 4,290 | 2,583 |
Insurance | 1,137 | 3,803 |
Other | 5,111 | 5,156 |
Total | $ 25,893 | $ 25,228 |
Accounts Receivable - Additiona
Accounts Receivable - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Jan. 01, 2017 |
Vendor [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for vendor receivables | $ 0.1 | $ 0.1 |
Prepaid Expenses and Other Cu65
Prepaid Expenses and Other Current Assets - Summary of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Prepaid rent | $ 14,785 | $ 12,971 |
Prepaid expenses | 9,354 | 6,288 |
Income tax receivable | 2,148 | |
Other current assets | 454 | 462 |
Total | $ 24,593 | $ 21,869 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Property Plant And Equipment Net [Abstract] | ||
Land and Buildings | $ 151,309 | $ 130,821 |
Furniture, fixtures and equipment | 491,990 | 400,724 |
Leasehold improvements | 401,237 | 321,730 |
Construction in progress | 52,100 | 49,263 |
Total property and equipment | 1,096,636 | 902,538 |
Accumulated depreciation and amortization | (383,605) | (297,878) |
Property and equipment, net | $ 713,031 | $ 604,660 |
Property and Equipment - Summ67
Property and Equipment - Summary of Leased Property and Equipment under Capital and Financing Lease Obligations (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Capital Leases-Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross asset balance | $ 16,745 | $ 11,338 |
Accumulated depreciation | (4,257) | (3,133) |
Net | 12,488 | 8,205 |
Financing leases [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross asset balance | 151,599 | 135,946 |
Accumulated depreciation | (17,941) | (14,681) |
Net | $ 133,658 | $ 121,265 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Property Plant And Equipment Net [Abstract] | |||
Depreciation expense | $ 96.6 | $ 80.2 | $ 69.1 |
Intangible Assets - Summary of
Intangible Assets - Summary of Activity and Balances in Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Jan. 01, 2017 | |
Intangible Assets [Line Items] | ||
Gross Intangible Assets, Beginning Balance | $ 205,533 | $ 205,060 |
Gross Intangible Assets, Additions | 0 | 473 |
Gross Intangible Assets, Ending Balance | 205,533 | 205,533 |
Accumulated Amortization, Beginning Balance | (7,925) | (6,459) |
Accumulated Amortization, Additions | (1,403) | (1,466) |
Accumulated Amortization, Ending Balance | (9,328) | (7,925) |
Trade name [Member] | ||
Intangible Assets [Line Items] | ||
Finite-lived Gross Intangible Assets, Beginning Balance | 1,800 | 1,800 |
Finite-lived Gross Intangible Assets, Additions | 0 | 0 |
Finite-lived Gross Intangible Assets, Ending Balance | 1,800 | 1,800 |
Accumulated Amortization, Beginning Balance | (825) | (645) |
Accumulated Amortization, Additions | (180) | (180) |
Accumulated Amortization, Ending Balance | (1,005) | (825) |
Leasehold interests [Member] | ||
Intangible Assets [Line Items] | ||
Finite-lived Gross Intangible Assets, Beginning Balance | 18,773 | 18,300 |
Finite-lived Gross Intangible Assets, Additions | 0 | 473 |
Finite-lived Gross Intangible Assets, Ending Balance | 18,773 | 18,773 |
Accumulated Amortization, Beginning Balance | (7,100) | (5,814) |
Accumulated Amortization, Additions | (1,223) | (1,286) |
Accumulated Amortization, Ending Balance | (8,323) | (7,100) |
Indefinite-lived trade names [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Gross Intangible Assets, Beginning Balance | 182,937 | 182,937 |
Indefinite-lived Gross Intangible Assets, Additions | 0 | 0 |
Indefinite-lived Gross Intangible Assets, Ending Balance | 182,937 | 182,937 |
Liquor licenses [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Gross Intangible Assets, Beginning Balance | 2,023 | 2,023 |
Indefinite-lived Gross Intangible Assets, Additions | 0 | 0 |
Indefinite-lived Gross Intangible Assets, Ending Balance | $ 2,023 | $ 2,023 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 1.4 | $ 1.5 | $ 1.3 |
Leasehold interests [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-average amortization period of intangible assets | 10 years | ||
Trade name [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-average amortization period of intangible assets | 4 years 4 months 24 days |
Intangible Assets - Summary o71
Intangible Assets - Summary of Future Amortization Associated with Net Carrying Amount of Finite-Lived Intangible Assets (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Finite Lived Intangible Assets Future Amortization Expense [Abstract] | |
2,018 | $ 1,402 |
2,019 | 1,386 |
2,020 | 1,375 |
2,021 | 1,339 |
2,022 | 1,189 |
Thereafter | 4,554 |
Total amortization | $ 11,245 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 368,078,000 | $ 368,078,000 | $ 368,100,000 |
Accumulated goodwill impairment losses | $ 0 | $ 0 | $ 0 |
Other Assets - Summary of Other
Other Assets - Summary of Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Other assets | $ 4,782 | $ 5,521 |
Accounts Payable and Other Ac74
Accounts Payable and Other Accrued Liabilities - Summary of Other Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Payables And Accruals [Abstract] | ||
Trade accounts payable | $ 119,034 | $ 115,326 |
Accrued occupancy related (CAM, property taxes, etc.) | 21,766 | 14,650 |
Self-insurance reserves | 19,714 | 19,161 |
Capital expenditures | 16,409 | 18,884 |
Distribution centers | 15,980 | 8,349 |
Gift cards | 13,099 | 12,264 |
Income taxes payable | 3,391 | |
Other | 35,460 | 25,292 |
Total | $ 244,853 | $ 213,926 |
Accrued Salaries and Benefits -
Accrued Salaries and Benefits - Summary of Accrued Salaries and Benefits (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Payables And Accruals [Abstract] | ||
Bonuses | $ 16,957 | $ 8,168 |
Payroll | 14,906 | 12,972 |
Vacation | 12,281 | 10,633 |
Other | 1,479 | 1,086 |
Total | $ 45,623 | $ 32,859 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Jan. 01, 2017 | |
Debt Instrument [Line Items] | ||
Total debt | $ 348,000 | $ 255,000 |
Long-term debt | 348,000 | 255,000 |
Senior Lien [Member] | Secured Debt [Member] | $450.0 million Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 348,000 | $ 255,000 |
Debt instrument maturity | Apr. 17, 2020 | |
Debt instrument, Interest Rate | Variable |
Long-Term Debt - Summary of L77
Long-Term Debt - Summary of Long-Term Debt (Parenthetical) (Detail) - Senior Lien [Member] - Secured Debt [Member] | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | |
Debt instrument face amount | $ 260,000,000 |
$450.0 million Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Debt instrument face amount | $ 450,000,000 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | Sep. 06, 2016 | Apr. 17, 2015 | |
Debt Instrument [Line Items] | |||||
Repayment of Term Loan | $ 261,250,000 | ||||
Loss on extinguishment of debt | (5,481,000) | ||||
Borrowings under credit facilities | $ 348,000,000 | $ 255,000,000 | |||
Participation fee | 1.50% | ||||
Issuance fee | 0.125% | ||||
Credit facility termination date | Apr. 17, 2020 | ||||
Borrowings during the period | $ 153,000,000 | 105,000,000 | 260,000,000 | ||
Net leverage ratio | 300.00% | ||||
Interest coverage ratio | 175.00% | ||||
September 6, 2016 Share Repurchase Program [Member] | |||||
Debt Instrument [Line Items] | |||||
Shares authorized to be repurchased | $ 250,000,000 | 250,000,000 | $ 250,000,000 | ||
Principal payments on the Credit Facility | 60,000,000 | $ 10,000,000 | |||
Senior Lien [Member] | Secured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | 260,000,000 | ||||
Loss on extinguishment of debt | $ (5,500,000) | ||||
Letters of credit issued | $ 27,500,000 | ||||
Line of credit interest rate terms | Either at adjusted LIBOR plus 1.50% per annum, or a base rate plus 0.50% per annum. The interest rate margins are subject to adjustment pursuant to a pricing grid based on the Company’s total gross leverage ratio, as defined in the Credit Agreement. | ||||
Credit facility unused commitment fee percentage | 0.20% | ||||
Senior Lien [Member] | Secured Debt [Member] | LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate spread on base rate | 1.50% | ||||
Senior Lien [Member] | Secured Debt [Member] | Alternate Base Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate spread on base rate | 0.50% | ||||
Senior Lien [Member] | Secured Debt [Member] | Former Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayment of Term Loan | $ 257,800,000 | ||||
Senior Lien [Member] | Secured Debt [Member] | Swingline Loan Subfacility [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | 15,000,000 | ||||
Senior Lien [Member] | Secured Debt [Member] | $450.0 million Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility maximum borrowing capacity | $ 450,000,000 | ||||
Debt instrument face amount | 450,000,000 | ||||
Capitalized total debt issuance costs | $ 2,300,000 | ||||
Senior Lien [Member] | Secured Debt [Member] | Former Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | 60,000,000 | ||||
Borrowings under credit facilities | $ 0 |
Other Long-Term Liabilities - S
Other Long-Term Liabilities - Summary of Other Long-Term Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 | Dec. 30, 2012 | Jan. 01, 2012 |
Other Liabilities Disclosure [Abstract] | ||||
Unamortized lease incentives | $ 60,942 | $ 54,176 | ||
Deferred rent | 28,791 | 24,581 | ||
Self-insurance reserves | 22,756 | 22,399 | ||
Unfavorable leasehold interests | 7,727 | 8,954 | $ 16,700 | $ 16,700 |
Other | 10,424 | 6,090 | ||
Total | $ 130,640 | $ 116,200 |
Other Long-Term Liabilities - A
Other Long-Term Liabilities - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 | Dec. 30, 2012 | Jan. 01, 2012 |
Other Liabilities Disclosure [Abstract] | ||||
Unfavorable leasehold interest | $ 7,727 | $ 8,954 | $ 16,700 | $ 16,700 |
Self-Insurance Programs - Addit
Self-Insurance Programs - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Insurance [Line Items] | ||
Accounts receivables | $ 25,893 | $ 25,228 |
Insurance Receivable [Member] | ||
Insurance [Line Items] | ||
Accounts receivables | 2,600 | $ 6,100 |
Expected accounts receivables to be paid during 2018 | $ 1,100 |
Defined Contribution Plan - Add
Defined Contribution Plan - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Matching contribution by employer | 50.00% |
Percentage of eligible compensation for which employer makes matching contribution | 6.00% |
Defined Contribution Plan - Tot
Defined Contribution Plan - Total Expense Recorded for Matching under Defined Contribution Plans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |||
Total expenses for matching under defined contribution plans | $ 4,067 | $ 3,354 | $ 2,656 |
Closed Store Reserves - Summary
Closed Store Reserves - Summary of Closed Store Reserve Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Jan. 01, 2017 | |
Restructuring And Related Activities [Abstract] | ||
Beginning balance | $ 1,083 | $ 2,017 |
Usage | (492) | (998) |
Adjustments | 220 | 64 |
Ending balance | $ 811 | $ 1,083 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | Dec. 22, 2017 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 |
Income Tax Contingency [Line Items] | ||||||
Corporate federal income tax rate | 35.00% | 35.00% | 35.00% | |||
Percentage of bonus depreciation for qualified property acquired and placed in service | 100.00% | |||||
Non-cash income tax benefit resulting from reduction in deferred tax liability | $ 18.7 | |||||
Effective income tax rate | 22.91% | 37.41% | 37.38% | |||
Excess tax benefits resulting from stock awards credited to stockholders' equity | $ 9.9 | $ 3.7 | $ 20 | |||
Unrecognized tax benefits (tax effected) that would impact the effective tax rate if recognized | 0.8 | 0.8 | 0.8 | |||
Anticipated increase in total unrecognized tax benefits during next twelve months | 0.1 | 0.1 | ||||
State [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Income tax credits | $ 0.4 | $ 0.4 | ||||
State [Member] | Earliest Tax Year [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Open year for statute of limitations | 2,013 | |||||
State [Member] | Latest Tax Year [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Open year for statute of limitations | 2,016 | |||||
Federal [Member] | Earliest Tax Year [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Open year for statute of limitations | 2,014 | |||||
Federal [Member] | Latest Tax Year [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Open year for statute of limitations | 2,016 | |||||
Additional Paid In Capital [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Excess tax benefits resulting from stock awards credited to stockholders' equity | $ 3.7 | $ 20 | ||||
Scenario, Forecast [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Corporate federal income tax rate | 21.00% |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S. Federal—current | $ (31,667) | $ (44,588) | $ (51,322) |
U.S. Federal—deferred | (6,551) | (19,293) | (15,155) |
U.S. Federal—total | (38,218) | (63,881) | (66,477) |
State—current | (7,337) | (9,036) | (9,619) |
State—deferred | (1,523) | (1,369) | (906) |
State—total | (8,860) | (10,405) | (10,525) |
Total provision | $ (47,078) | $ (74,286) | $ (77,002) |
Income Taxes - Tax Rate Reconci
Income Taxes - Tax Rate Reconciliation (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract] | |||
Federal statutory rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit | 3.20% | 3.73% | 3.82% |
Tax Act benefit | (9.10%) | ||
Excess tax benefits from share based payments | (4.33%) | ||
Other, net | (1.86%) | (1.32%) | (1.44%) |
Effective tax rate | 22.91% | 37.41% | 37.38% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Deferred tax assets | ||
Employee benefits | $ 20,332 | $ 26,650 |
Tax credits | 410 | 408 |
Lease related | 61,489 | 84,744 |
Other accrued liabilities | 5,605 | 9,986 |
Charitable contribution carryforward | 12,800 | 15,928 |
Inventories and other | 1,844 | 2,087 |
Total gross deferred tax assets | 102,480 | 139,803 |
Deferred tax liabilities | ||
Depreciation and amortization | (109,245) | (137,230) |
Intangible assets | (20,301) | (21,021) |
Other | (815) | |
Total gross deferred tax liabilities | (129,546) | (159,066) |
Net deferred tax (liability) / asset | $ (27,066) | $ (19,263) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Reconciliation Of Unrecognized Tax Benefits Excluding Amounts Pertaining To Examined Tax Returns Roll Forward | |||
Beginning balance | $ 819 | $ 737 | $ 626 |
Additions based on tax positions related to the current year | 95 | 104 | 114 |
Reductions for tax positions for prior years | (120) | (22) | (3) |
Ending balance | $ 794 | $ 819 | $ 737 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) - USD ($) | Nov. 03, 2015 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 |
Purchase of Airplane [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchases from board member | $ 7,500,000 | |||
Transaction closing period | Dec. 17, 2015 | |||
Coffee Supplier [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchases from board member | $ 10,900,000 | $ 9,800,000 | $ 9,700,000 | |
Accounts payable to supplier | 700,000 | 700,000 | 700,000 | |
Accounts receivable due from vendor | 0 | 0 | 0 | |
Technology Supplier [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchases from board member | 6,300,000 | 7,900,000 | 6,500,000 | |
Accounts payable to supplier | 100,000 | 300,000 | 400,000 | |
Accounts receivable due from vendor | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Other Commitments [Line Items] | |||
Average remaining lease term | 9 years | ||
Rent expense charged to operations | $ 120.5 | $ 104.8 | $ 88.1 |
Sale leaseback accounting during 2018 | 3.6 | ||
Future purchase commitments | $ 63.5 | ||
Minimum [Member] | |||
Other Commitments [Line Items] | |||
Leases expiration dates | 2,019 | ||
Maximum [Member] | |||
Other Commitments [Line Items] | |||
Leases expiration dates | 2,034 |
Commitments and Contingencies92
Commitments and Contingencies - Schedule of Future Minimum Lease Obligations for Operating Leases (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,018 | $ 142,620 |
2,019 | 153,583 |
2,020 | 153,241 |
2,021 | 148,970 |
2,022 | 140,957 |
Thereafter | 856,826 |
Total payments | $ 1,596,197 |
Commitments and Contingencies93
Commitments and Contingencies - Schedule of Subtenant Agreements (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,018 | $ 1,464 |
2,019 | 1,208 |
2,020 | 1,121 |
2,021 | 882 |
2,022 | 788 |
Thereafter | 1,512 |
Total subtenant rent | $ 6,975 |
Commitments and Contingencies94
Commitments and Contingencies - Schedule of Future Minimum Lease Payments Required by All Capital and Financing Leases (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Capital Leases | |
2,018 | $ 2,069 |
2,019 | 1,912 |
2,020 | 1,811 |
2,021 | 1,811 |
2,022 | 1,831 |
Thereafter | 13,905 |
Total | 23,339 |
Less amount representing interest | (8,946) |
Net present value of capital and financing lease obligations | 14,393 |
Less current portion | (925) |
Total long-term | 13,468 |
Financing Leases | |
2,018 | 14,764 |
2,019 | 14,344 |
2,020 | 14,351 |
2,021 | 13,656 |
2,022 | 12,044 |
Thereafter | 43,791 |
Total | 112,950 |
Plus balloon payment (financing leases) | 94,041 |
Less amount representing interest | (92,258) |
Net present value of capital and financing lease obligations | 114,733 |
Less current portion | (4,751) |
Total long-term | $ 109,982 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2017 | Jan. 01, 2017 | Feb. 20, 2017 | Sep. 06, 2016 | Nov. 04, 2015 | |
Class of Stock [Line Items] | |||||
Common stock issued | 132,823,981 | 140,256,313 | |||
Common stock shares outstanding | 132,823,981 | 140,256,313 | |||
Common stock shares repurchased and retired | 9,696,819 | 13,242,483 | |||
Preferred stock shares authorized | 10,000,000 | 10,000,000 | |||
November 4, 2015 Share Repurchase Program [Member] | |||||
Class of Stock [Line Items] | |||||
Shares authorized to be repurchased | $ 150,000,000 | $ 150,000,000 | |||
September 6, 2016 Share Repurchase Program [Member] | |||||
Class of Stock [Line Items] | |||||
Shares authorized to be repurchased | 250,000,000 | $ 250,000,000 | $ 250,000,000 | ||
February 20, 2017 Share Repurchase Program [Member] | |||||
Class of Stock [Line Items] | |||||
Shares authorized to be repurchased | $ 250,000,000 | $ 250,000,000 | |||
2013 Incentive Plan [Member] | |||||
Class of Stock [Line Items] | |||||
Common stock reserved for issuance | 5,809,319 | ||||
Restricted Shares [Member] | |||||
Class of Stock [Line Items] | |||||
Common stock shares outstanding | 373,889 |
Capital Stock - Schedule of Opt
Capital Stock - Schedule of Options Exercised in Exchange for Issuance of Shares of Common Stock (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Equity [Abstract] | |||
Options exercised | 1,863,059 | 565,568 | 1,773,518 |
Capital Stock - Schedule of Sha
Capital Stock - Schedule of Share Repurchase Programs Authorized by Board and Related Repurchase Activity and Available Authorized (Detail) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | Feb. 20, 2017 | Sep. 06, 2016 | Nov. 04, 2015 | |
Equity Class Of Treasury Stock [Line Items] | ||||||
Cost of repurchases | $ 203,392,000 | $ 294,265,000 | $ 25,735,000 | |||
November 4, 2015 [Member] | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Effective date | Nov. 4, 2015 | |||||
Expiration date | Nov. 4, 2017 | |||||
Amount authorized | $ 150,000,000 | $ 150,000,000 | ||||
Cost of repurchases | $ 150,000,000 | |||||
September 6, 2016 [Member] | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Effective date | Sep. 6, 2016 | |||||
Expiration date | Dec. 31, 2017 | |||||
Amount authorized | $ 250,000,000 | $ 250,000,000 | $ 250,000,000 | |||
Cost of repurchases | $ 250,000,000 | |||||
February 20, 2017 [Member] | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Effective date | Feb. 20, 2017 | |||||
Expiration date | Dec. 31, 2018 | |||||
Amount authorized | $ 250,000,000 | $ 250,000,000 | ||||
Cost of repurchases | 123,400,000 | |||||
Authorization available | $ 126,600,000 |
Capital Stock - Schedule of S98
Capital Stock - Schedule of Share Repurchase Activity under Share Repurchase Programs (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Equity [Abstract] | |||
Number of common shares acquired | 9,696,819 | 13,242,483 | |
Average price per common share acquired | $ 20.98 | $ 22.22 | |
Total cost of common shares acquired | $ 203,392 | $ 294,265 | $ 25,735 |
Net Income Per Share - Summary
Net Income Per Share - Summary of Reconciliation of Numerators and Denominators of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Basic net income per share: | |||
Net income | $ 158,440 | $ 124,306 | $ 128,991 |
Weighted average shares outstanding | 135,169 | 147,311 | 153,099 |
Basic net income per share | $ 1.17 | $ 0.84 | $ 0.84 |
Diluted net income per share: | |||
Net income | $ 158,440 | $ 124,306 | $ 128,991 |
Weighted average shares outstanding | 135,169 | 147,311 | 153,099 |
Dilutive effect of equity-based awards: | |||
Assumed exercise of options to purchase shares | 2,378 | 2,232 | 2,737 |
Weighted average shares and equivalent shares outstanding | 137,884 | 149,653 | 155,877 |
Diluted net income per share | $ 1.15 | $ 0.83 | $ 0.83 |
Restricted Stock Units [Member] | |||
Dilutive effect of equity-based awards: | |||
Dilutive effect | 142 | 58 | 37 |
Restricted Stock Awards [Member] | |||
Dilutive effect of equity-based awards: | |||
Dilutive effect | 119 | 17 | |
Performance Share Awards [Member] | |||
Dilutive effect of equity-based awards: | |||
Dilutive effect | 76 | 35 | 4 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Stock option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 1,908,262 | 1,762,903 | 514,377 |
RSUs [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 10,364 | 14,404 | |
PSAs [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 148,944 | 92,942 |
Derivative Financial Instrum101
Derivative Financial Instruments - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017USD ($)HedgeSwap | |
Derivative [Line Items] | |
Number of outstanding swaps | Swap | 5 |
Derivative, cash flow swaps length period | 1 year |
Cash flow swaps mature anually, starting year | 2,018 |
Cash flow swaps mature anually, ending year | 2,022 |
Hedging instruments effectiveness review measurement basis | We review the effectiveness of our hedging instruments on a quarterly basis |
Cash Flow Hedges [Member] | |
Derivative [Line Items] | |
Interest rate swaps hedge ineffectiveness | 0.00% |
Swaps [Member] | |
Derivative [Line Items] | |
Derivative, notional amount of outstanding swaps | $ | $ 250,000,000 |
Forward Contract [Member] | |
Derivative [Line Items] | |
Derivative, number of cash flow hedges | Hedge | 5 |
Derivative Financial Instrum102
Derivative Financial Instruments - Summary of Fair Value of Derivative Instruments (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Derivatives Designated as Hedging Instruments [Member] | Interest Rate Swaps [Member] | Other Accrued and Long-term Liabilities [Member] | |
Derivatives Fair Value [Line Items] | |
Liability Derivatives, Fair Value | $ 1,064 |
Derivative Financial Instrum103
Derivative Financial Instruments - Summary of Gains and Losses of Derivative Instruments (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Interest Expense [Member] | |
Derivative Instruments Gain Loss [Line Items] | |
Gain / (Loss) on Derivative Instruments | $ 9 |
Comprehensive Income - Changes
Comprehensive Income - Changes In Accumulated Other Comprehensive Income (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning Balance | $ 672,909 |
Ending Balance | 650,694 |
Cash Flow Hedges [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Other comprehensive loss before reclassifications | (1,064) |
Amounts reclassified from accumulated other comprehensive loss | 9 |
Total before tax | (1,055) |
Tax benefit | 271 |
Net current year other comprehensive loss | (784) |
Ending Balance | $ (784) |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Long-term debt | $ 348,000 | $ 255,000 |
Interest rate swap liability | 1,064 | |
Closed store reserves | 811 | 1,083 |
Total | 349,875 | 256,083 |
Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Long-term debt | 348,000 | 255,000 |
Interest rate swap liability | 1,064 | |
Total | 349,064 | 255,000 |
Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Closed store reserves | 811 | 1,083 |
Total | $ 811 | $ 1,083 |
Equity-Based Compensation - Sum
Equity-Based Compensation - Summary of Awards Granted to Officers and Team Members (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value | $ 7.43 | $ 6.22 | |
2013 Incentive Plan [Member] | Officers and Team Members [Member] | Stock option [Member] | March 11, 2015 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 277,833 | ||
Exercise Price | $ 34.33 | ||
Grant date fair value | $ 9.42 | ||
2013 Incentive Plan [Member] | Officers and Team Members [Member] | Stock option [Member] | May 21, 2015 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 14,492 | ||
Exercise Price | $ 30.30 | ||
Grant date fair value | $ 8.28 | ||
2013 Incentive Plan [Member] | Officers and Team Members [Member] | Stock option [Member] | August 11, 2015 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 2,138,899 | ||
Exercise Price | $ 20.98 | ||
Grant date fair value | $ 5.79 | ||
2013 Incentive Plan [Member] | Officers and Team Members [Member] | Stock option [Member] | November 10, 2015 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 4,431 | ||
Exercise Price | $ 23.26 | ||
Grant date fair value | $ 6.77 | ||
2013 Incentive Plan [Member] | Officers and Team Members [Member] | Stock option [Member] | March 4, 2016 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 318,156 | ||
Exercise Price | $ 28.21 | ||
Grant date fair value | $ 8.59 | ||
2013 Incentive Plan [Member] | Officers and Team Members [Member] | Stock option [Member] | April 11, 2016 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 4,627 | ||
Exercise Price | $ 27.69 | ||
Grant date fair value | $ 8.32 | ||
2013 Incentive Plan [Member] | Officers and Team Members [Member] | Stock option [Member] | May 23, 2016 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 419,935 | ||
Exercise Price | $ 24.48 | ||
Grant date fair value | $ 6.54 | ||
2013 Incentive Plan [Member] | Officers and Team Members [Member] | RSUs [Member] | March 11, 2015 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 87,394 | ||
Grant date fair value | $ 34.33 | ||
2013 Incentive Plan [Member] | Officers and Team Members [Member] | RSUs [Member] | May 21, 2015 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 3,896 | ||
Grant date fair value | $ 30.30 | ||
2013 Incentive Plan [Member] | Officers and Team Members [Member] | RSUs [Member] | August 11, 2015 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 5,660 | ||
Grant date fair value | $ 20.98 | ||
2013 Incentive Plan [Member] | Officers and Team Members [Member] | RSUs [Member] | November 10, 2015 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 1,370 | ||
Grant date fair value | $ 23.26 | ||
2013 Incentive Plan [Member] | Officers and Team Members [Member] | RSUs [Member] | March 4, 2016 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 213,767 | ||
Grant date fair value | $ 28.21 | ||
2013 Incentive Plan [Member] | Officers and Team Members [Member] | RSUs [Member] | April 11, 2016 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 1,335 | ||
Grant date fair value | $ 27.69 | ||
2013 Incentive Plan [Member] | Officers and Team Members [Member] | RSUs [Member] | May 9, 2016 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 14,404 | ||
Grant date fair value | $ 26.65 | ||
2013 Incentive Plan [Member] | Officers and Team Members [Member] | RSUs [Member] | August 18, 2016 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 7,499 | ||
Grant date fair value | $ 22.44 | ||
2013 Incentive Plan [Member] | Officers and Team Members [Member] | RSUs [Member] | March 3, 2017 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 323,687 | ||
Grant date fair value | $ 18.11 | ||
2013 Incentive Plan [Member] | Officers and Team Members [Member] | RSUs [Member] | March 27, 2017 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 1,719 | ||
Grant date fair value | $ 22.54 | ||
2013 Incentive Plan [Member] | Officers and Team Members [Member] | RSUs [Member] | May 12, 2017 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 21,820 | ||
Grant date fair value | $ 23.89 | ||
2013 Incentive Plan [Member] | Officers and Team Members [Member] | RSUs [Member] | August 11, 2017 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 10,630 | ||
Grant date fair value | $ 24.14 | ||
2013 Incentive Plan [Member] | Officers and Team Members [Member] | RSUs [Member] | November 10, 2017 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 2,586 | ||
Grant date fair value | $ 20.80 | ||
2013 Incentive Plan [Member] | Officers and Team Members [Member] | PSAs [Member] | March 11, 2015 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 71,753 | ||
Grant date fair value | $ 34.33 | ||
2013 Incentive Plan [Member] | Officers and Team Members [Member] | PSAs [Member] | March 4, 2016 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 92,942 | ||
Grant date fair value | $ 28.21 | ||
2013 Incentive Plan [Member] | Officers and Team Members [Member] | PSAs [Member] | March 3, 2017 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 148,944 | ||
Grant date fair value | $ 18.11 | ||
2013 Incentive Plan [Member] | Officers and Team Members [Member] | RSAs [Member] | May 23, 2016 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 217,852 | ||
Grant date fair value | $ 24.48 | ||
2013 Incentive Plan [Member] | Officers and Team Members [Member] | RSAs [Member] | March 3, 2017 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 288,746 | ||
Grant date fair value | $ 18.11 |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Detail) - USD ($) | May 23, 2016 | Jan. 03, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Aug. 31, 2015 | Mar. 01, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | Feb. 28, 2018 | Feb. 28, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Grant date fair value | $ 7.43 | $ 6.22 | |||||||||
Total intrinsic value of options exercised | $ 31,627 | ||||||||||
Income tax benefits | 5,600,000 | $ 5,200,000 | $ 3,100,000 | ||||||||
Proceeds from exercise of stock options | 9,300,000 | 2,740,000 | 6,565,000 | ||||||||
Tax benefits from the exercise of options | 9,900,000 | 3,700,000 | 20,000,000 | ||||||||
Total equity-based compensation expense | $ 14,221,000 | $ 13,399,000 | $ 8,018,000 | ||||||||
RSUs [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Grant date fair value | $ 18.68 | $ 27.93 | $ 33.25 | ||||||||
Total grant date fair value issued | 448,647 | 274,457 | |||||||||
Number of awards issued | 360,442 | ||||||||||
RSUs [Member] | Maximum [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Grant date fair value | $ 28.21 | $ 28.21 | |||||||||
RSUs [Member] | Minimum [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Grant date fair value | $ 18.11 | $ 18.11 | |||||||||
Stock option [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Options granted | 0 | ||||||||||
Grant date weighted average options issued | 2,100,000 | 500,000 | 1,200,000 | 2,100,000 | |||||||
Grant date weighted average fair value of options issued but not vested | $ 6.32 | $ 7.25 | $ 7.02 | $ 6.32 | |||||||
Total intrinsic value of options exercised | $ 31,600,000 | $ 12,300,000 | $ 53,400,000 | ||||||||
Stock option [Member] | Maximum [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Grant date fair value | $ 9.42 | $ 9.42 | |||||||||
Stock option [Member] | Minimum [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Grant date fair value | $ 5.79 | $ 5.79 | |||||||||
PSAs [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Grant date fair value | $ 18.11 | ||||||||||
Performance stock awards description | The criteria is based on a range of performance targets in which grantees may earn between 10% and 150% of the base number of awards granted. | Payout of the performance shares will either be 0% or range from 50% to 150% of the target number of shares granted, depending upon goal achievement. | |||||||||
Total grant date fair value granted | $ 2,700,000 | $ 2,600,000 | $ 2,500,000 | ||||||||
Total grant date fair value vested | 700,000 | ||||||||||
Total grant date fair value forfeited | $ 800,000 | $ 100,000 | $ 100,000 | ||||||||
Total grant date fair value issued | 100,000 | 200,000 | 100,000 | 100,000 | |||||||
Total grant date fair value issued but not released | $ 2,400,000 | $ 5,200,000 | $ 2,600,000 | $ 2,400,000 | |||||||
Total grant date fair value released | $ 0 | $ 0 | |||||||||
Grant date fair value not earned | 30,984 | 30,984 | |||||||||
Grant date fair value earned | 100,000 | ||||||||||
Total grant date fair value issued | 231,497 | 158,936 | |||||||||
Number of awards issued | 148,944 | ||||||||||
PSAs [Member] | Subsequent Event [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Performance stock awards payout percentage of shares granted | 150.00% | ||||||||||
Grant date fair value not earned | 30,980 | ||||||||||
PSAs [Member] | Second Anniversary [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Options vesting percentage | 50.00% | 50.00% | |||||||||
PSAs [Member] | Third Anniversary [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Options vesting percentage | 50.00% | 50.00% | |||||||||
PSAs [Member] | Option One [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Performance stock awards payout percentage of shares granted | 0.00% | ||||||||||
PSAs [Member] | Employee Termination [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting period | 24 months | ||||||||||
PSAs [Member] | Maximum [Member] | Option Two [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Performance stock awards payout percentage of shares granted | 150.00% | 150.00% | |||||||||
PSAs [Member] | Minimum [Member] | Option Two [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Performance stock awards payout percentage of shares granted | 10.00% | 50.00% | |||||||||
RSAs [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting period | 3 years | ||||||||||
Grant date fair value | $ 18.11 | ||||||||||
Total grant date fair value granted | $ 5,200,000 | ||||||||||
Total grant date fair value forfeited | 0 | ||||||||||
Total grant date fair value issued but not released | 6,800,000 | ||||||||||
Total grant date fair value released | $ 3,000,000 | ||||||||||
Total grant date fair value issued | 352,847 | 187,101 | |||||||||
Number of awards issued | 288,746 | ||||||||||
RSAs [Member] | Employee Termination [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting period | 24 months | ||||||||||
2013 Incentive Plan [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares authorized for issuance under plan | 10,089,072 | ||||||||||
Common stock reserved for issuance | 5,809,319 | ||||||||||
Total equity-based compensation expense | $ 3,800,000 | ||||||||||
2013 Incentive Plan [Member] | Employee Termination [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting period | 24 months | ||||||||||
2013 Incentive Plan [Member] | Maximum [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Options granted | 500,000 | ||||||||||
2013 Incentive Plan [Member] | Officers and Team Members [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Options expire period from grant date | 7 years | 7 years | |||||||||
Vesting period | 3 years | 3 years | |||||||||
2013 Incentive Plan [Member] | Officers and Team Members [Member] | Maximum [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Options vesting percentage | 33.33% | ||||||||||
2013 Incentive Plan [Member] | Officers and Team Members [Member] | RSUs [Member] | Maximum [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Options vesting percentage | 33.33% | 33.33% | 33.33% | ||||||||
Vesting period | 3 years | 3 years | 3 years | ||||||||
2013 Incentive Plan [Member] | Officers and Team Members [Member] | RSUs [Member] | Minimum [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Options vesting percentage | 50.00% | 50.00% | 50.00% | ||||||||
Vesting period | 2 years | 2 years | 2 years | ||||||||
2013 Incentive Plan [Member] | Independent Directors [Member] | RSUs [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting period | 1 year | 1 year | |||||||||
2013 Incentive Plan [Member] | Chief Executive Officer [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Options granted | 386,496 | 1,200,000 | |||||||||
Stock options awarded to employees, exercise price | $ 24.48 | $ 20.98 | |||||||||
Excess stock options granted | 733,439 | ||||||||||
2013 Incentive Plan [Member] | Chief Executive Officer [Member] | RSAs [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of awards issued | 215,251 | ||||||||||
2013 Incentive Plan [Member] | President & Chief Operating Officer [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Options granted | 33,439 | 500,000 | |||||||||
Stock options awarded to employees, exercise price | $ 24.48 | $ 20.98 | |||||||||
Excess stock options granted | 33,439 | ||||||||||
2013 Incentive Plan [Member] | President & Chief Operating Officer [Member] | RSAs [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of awards issued | 2,601 | ||||||||||
2011 Option Plan [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares authorized for issuance under plan | 12,100,000 |
Equity-Based Compensation - Est
Equity-Based Compensation - Estimated Fair Values of Options Granted (Detail) | 12 Months Ended | |
Jan. 01, 2017 | Jan. 03, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Expected volatility, minimum | 33.92% | 30.61% |
Expected volatility, maximum | 34.18% | 32.51% |
Risk free interest rate, minimum | 1.18% | 1.44% |
Risk free interest rate, maximum | 1.32% | 1.67% |
Expected term, in years | 4 years 3 months 22 days | |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term, in years | 3 years 6 months 11 days | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term, in years | 4 years 6 months |
Equity-Based Compensation - 109
Equity-Based Compensation - Summary of Grant Date Weighted Average Fair Value of Options Granted and Options Forfeited (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Grant date weighted average fair value of options granted | $ 7.43 | $ 6.22 | |
Grant date weighted average fair value of options forfeited | $ 9.66 | $ 8.60 | $ 5.36 |
Equity-Based Compensation - 110
Equity-Based Compensation - Summary of Option Activity (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Number of Options, Outstanding, Beginning Balance | 6,757,358 | ||
Number of Options, Forfeited | (204,357) | ||
Number of Options, Exercised | (1,863,059) | (565,568) | (1,773,518) |
Number of Options, Outstanding, Ending balance | 4,689,942 | 6,757,358 | |
Number of Options, Exercisable | 4,225,908 | ||
Number of Options, Vested and Expected to vest | 4,689,942 | ||
Weighted Average Exercise Price, Outstanding, Beginning balance | $ 12.57 | ||
Weighted Average Exercise Price, Forfeited | 35.08 | ||
Weighted Average Exercise Price, Exercised | 4.99 | ||
Weighted Average Exercise Price, Outstanding, Ending balance | 14.60 | $ 12.57 | |
Weighted Average Exercise Price, Exercisable | 13.43 | ||
Weighted Average Exercise Price, Vested and Expected to vest | $ 14.60 | ||
Weighted Average Remaining Contractual Life (In Years), Outstanding | 2 years 7 months 9 days | ||
Weighted Average Remaining Contractual Life (In Years), Exercisable | 2 years 4 months 13 days | ||
Weighted Average Remaining Contractual Life (In Years), Vested and Expected to vest | 2 years 7 months 9 days | ||
Aggregate Intrinsic Value, Exercised | $ 31,627 | ||
Aggregate Intrinsic Value, Outstanding | 51,363 | ||
Aggregate Intrinsic Value, Exercisable | 50,970 | ||
Aggregate Intrinsic Value, Vested and Expected to vest | $ 51,363 |
Equity-Based Compensation - 111
Equity-Based Compensation - Summary of Weighted Average Grant Date Fair Value of RSUs Awarded (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSUs awarded | $ 18.68 | $ 27.93 | $ 33.25 |
Equity-Based Compensation - 112
Equity-Based Compensation - Summary of RSUs Activity (Detail) - RSUs [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Outstanding, Beginning Balance | 274,457 | ||
Number of Shares, Awarded | 360,442 | ||
Number of Shares, Released | (137,560) | ||
Number of Shares, Forfeited | (48,692) | ||
Number of Shares, Outstanding, Ending Balance | 448,647 | 274,457 | |
Weighted Average Grant Date Fair Value, Beginning Balance | $ 29.47 | ||
Weighted Average Grant Date Fair Value, Awarded | 18.68 | $ 27.93 | $ 33.25 |
Weighted Average Grant Date Fair Value, Released | 30.01 | ||
Weighted Average Grant Date Fair Value, Forfeited | 23.21 | ||
Weighted Average Grant Date Fair Value, Ending balance | $ 21.31 | $ 29.47 |
Equity-Based Compensation - 113
Equity-Based Compensation - Summary of PSAs Activity (Detail) - PSAs [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Feb. 28, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Outstanding, Beginning Balance | 158,936 | |
Number of Shares, Awarded | 148,944 | |
Number of Shares, Released | (21,050) | |
Number of Shares, Forfeited | (24,349) | |
Number of Shares, Not Earned | (30,984) | (30,984) |
Number of Shares, Outstanding, Ending Balance | 231,497 | |
Weighted Average Grant Date Fair Value, Beginning Balance | $ 30.75 | |
Weighted Average Grant Date Fair Value, Awarded | 18.11 | |
Weighted Average Grant Date Fair Value, Released | 34.33 | |
Weighted Average Grant Date Fair Value, Forfeited | 34.33 | |
Weighted Average Grant Date Fair Value, Not Earned | 28.21 | |
Weighted Average Grant Date Fair Value, Ending balance | $ 22.26 |
Equity-Based Compensation - 114
Equity-Based Compensation - Summary of RSAs Activity (Detail) - RSAs [Member] | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Outstanding, Beginning Balance | shares | 187,101 |
Number of Shares, Awarded | shares | 288,746 |
Number of Shares, Released | shares | (123,000) |
Number of Shares, Outstanding, Ending Balance | shares | 352,847 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 24.48 |
Weighted Average Grant Date Fair Value, Awarded | $ / shares | 18.11 |
Weighted Average Grant Date Fair Value, Released | $ / shares | 24.48 |
Weighted Average Grant Date Fair Value, Ending balance | $ / shares | $ 19.27 |
Equity-Based Compensation - 115
Equity-Based Compensation - Summary of Equity-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total equity-based compensation expense | $ 14,221 | $ 13,399 | $ 8,018 |
Cost of Sales, Buying and Occupancy [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total equity-based compensation expense | 1,039 | 965 | 681 |
Direct Store Expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total equity-based compensation expense | 1,444 | 1,345 | 1,103 |
Selling, General and Administrative Expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total equity-based compensation expense | $ 11,738 | $ 11,089 | $ 6,234 |
Equity-Based Compensation - 116
Equity-Based Compensation - Summary of Total Unrecognized Compensation Expense and Remaining Weighted Average Recognition Period Related to Outstanding Equity-Based Awards (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense related to outstanding options | $ 2,529 |
Total unrecognized compensation expense at December 31, 2017 | $ 15,746 |
Remaining weighted average recognition period | 9 months 18 days |
RSUs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense related to outstanding equity-based awards other than options | $ 5,485 |
Remaining weighted average recognition period | 1 year 4 months 24 days |
PSAs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense related to outstanding equity-based awards other than options | $ 2,692 |
Remaining weighted average recognition period | 1 year 4 months 24 days |
RSAs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense related to outstanding equity-based awards other than options | $ 5,040 |
Remaining weighted average recognition period | 1 year 10 months 24 days |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ in Thousands, shares in Millions | 2 Months Ended | 12 Months Ended | ||
Feb. 20, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Subsequent Event [Line Items] | ||||
Borrowings during the period | $ 153,000 | $ 105,000 | $ 260,000 | |
Borrowings under credit facilities | $ 348,000 | $ 255,000 | ||
Subsequent Event [Member] | February 21, 2018 Share Repurchase Program [Member] | ||||
Subsequent Event [Line Items] | ||||
Shares authorized to be repurchased | $ 350,000 | |||
Subsequent Event [Member] | Common Stock [Member] | ||||
Subsequent Event [Line Items] | ||||
Common stock repurchased during period, shares | 1.2 | |||
Common stock repurchased during period, value | $ 30,400 | |||
Subsequent Event [Member] | $450.0 million Credit Facility [Member] | ||||
Subsequent Event [Line Items] | ||||
Borrowings during the period | 3,000 | |||
Principal payments on the Credit Facility | 10,000 | |||
Borrowings under credit facilities | $ 341,000 |