Document_and_Entity_Informatio
Document and Entity Information | 4 Months Ended | |
Apr. 19, 2014 | Jun. 03, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 19-Apr-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Entity Registrant Name | 'TOPS HOLDING II CORP | ' |
Entity Central Index Key | '0001584701 | ' |
Current Fiscal Year End Date | '--12-27 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 126,560 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Apr. 19, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $27,598 | $29,913 |
Accounts receivable, net | 62,172 | 64,521 |
Inventory, net | 138,379 | 142,296 |
Prepaid expenses and other current assets | 16,497 | 10,755 |
Income taxes refundable | 58 | 110 |
Current deferred tax assets | 6,129 | 6,129 |
Total current assets | 250,833 | 253,724 |
Property and equipment, net | 386,457 | 385,581 |
Goodwill (Note 3) | 217,406 | 217,406 |
Intangible assets, net (Note 3) | 189,610 | 193,339 |
Other assets | 17,802 | 18,986 |
Total assets | 1,062,108 | 1,069,036 |
Current liabilities: | ' | ' |
Accounts payable | 81,463 | 79,700 |
Accrued expenses and other current liabilities (Note 4) | 94,322 | 98,231 |
Current portion of capital lease obligations (Note 5) | 8,583 | 8,314 |
Current portion of long-term debt (Note 6) | 501 | 2,309 |
Total current liabilities | 184,869 | 188,554 |
Capital lease obligations (Note 5) | 128,965 | 114,286 |
Long-term debt (Note 6) | 662,693 | 664,186 |
Other long-term liabilities | 33,598 | 31,470 |
Non-current deferred tax liabilities | 49,730 | 52,244 |
Total liabilities | 1,059,855 | 1,050,740 |
Commitments and contingencies (Note 9) | ' | ' |
Common shares ($0.001 par value; 300,000 authorized shares, 126,560 shares issued and outstanding as of April 19, 2014 and December 28, 2013) (Note 8) | ' | ' |
Paid-in capital | 18,488 | 20,860 |
Accumulated deficit | -16,284 | -2,613 |
Accumulated other comprehensive income, net of tax | 49 | 49 |
Total shareholders' equity | 2,253 | 18,296 |
Total liabilities and shareholders' equity | $1,062,108 | $1,069,036 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Apr. 19, 2014 | Dec. 28, 2013 |
Statement Of Financial Position [Abstract] | ' | ' |
Common shares, par value | $0.00 | $0.00 |
Common shares, authorized | 300,000 | 300,000 |
Common shares, issued | 126,560 | 126,560 |
Common shares, outstanding | 126,560 | 126,560 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) (USD $) | 4 Months Ended | |
In Thousands, unless otherwise specified | Apr. 19, 2014 | Apr. 20, 2013 |
Net sales | $756,539 | $735,809 |
Cost of goods sold | -526,635 | ' |
Distribution costs | -16,226 | ' |
Gross profit | 213,678 | ' |
Operating expenses: | ' | ' |
Wages, salaries and benefits | -106,958 | ' |
Selling and general expenses | -41,404 | ' |
Administrative expenses (inclusive of share-based compensation expense of $10 and $216) | -21,024 | ' |
Rent expense, net | -8,218 | ' |
Depreciation and amortization | -20,826 | ' |
Advertising | -6,339 | ' |
Total operating expenses | -204,769 | ' |
Operating income | 8,909 | ' |
Interest expense, net | -25,077 | ' |
(Loss) income before income taxes | -16,168 | ' |
Income tax benefit (expense) | 2,497 | ' |
Net loss | -13,671 | ' |
Other comprehensive income | ' | ' |
Comprehensive loss | -13,671 | ' |
Predecessor [Member] | ' | ' |
Net sales | ' | 735,809 |
Cost of goods sold | ' | -513,151 |
Distribution costs | ' | -14,517 |
Gross profit | ' | 208,141 |
Operating expenses: | ' | ' |
Wages, salaries and benefits | ' | -104,045 |
Selling and general expenses | ' | -36,308 |
Administrative expenses (inclusive of share-based compensation expense of $10 and $216) | ' | -22,254 |
Rent expense, net | ' | -7,565 |
Depreciation and amortization | ' | -17,004 |
Advertising | ' | -5,767 |
Total operating expenses | ' | -192,943 |
Operating income | ' | 15,198 |
Interest expense, net | ' | -18,972 |
(Loss) income before income taxes | ' | -3,774 |
Income tax benefit (expense) | ' | -427 |
Net loss | ' | -4,201 |
Other comprehensive income | ' | ' |
Comprehensive loss | ' | ($4,201) |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) (Parenthetical) (USD $) | 4 Months Ended | |
In Thousands, unless otherwise specified | Apr. 19, 2014 | Apr. 20, 2013 |
Predecessor [Member] | ||
Share-based compensation expense included in administrative expenses | $10 | $216 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 4 Months Ended | |
In Thousands, unless otherwise specified | Apr. 19, 2014 | Apr. 20, 2013 |
Predecessor [Member] | ||
Cash flows provided by operating activities: | ' | ' |
Net loss | ($13,671) | ($4,201) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 25,153 | 21,709 |
Deferred income taxes | -2,514 | 428 |
LIFO inventory valuation adjustments | 1,338 | 395 |
Amortization of deferred financing costs | 1,184 | 668 |
Share-based compensation expense | 10 | 216 |
Other | 253 | 126 |
Changes in operating assets and liabilities: | ' | ' |
Decrease in accounts receivable, net | 2,349 | 2,426 |
Decrease (increase) in inventory, net | 2,579 | -528 |
Increase in prepaid expenses and other current assets | -4,836 | -3,691 |
Decrease (increase) in income taxes refundable | 52 | -15 |
Increase in accounts payable | 1,828 | 876 |
Decrease in accrued expenses and other current liabilities | -8,168 | -640 |
Increase in other long-term liabilities | 2,320 | 394 |
Net cash provided by operating activities | 7,877 | 18,163 |
Cash flows used in investing activities: | ' | ' |
Cash paid for property and equipment | -12,300 | -12,301 |
Net cash (used in) provided by investing activities | -12,300 | -12,301 |
Cash flows provided by (used in) financing activities: | ' | ' |
Borrowings on 2017 ABL Facility | 179,700 | 29,900 |
Repayments on 2017 ABL Facility | -182,400 | -29,900 |
Proceeds from sale leaseback financing transaction | 12,750 | ' |
Principal payments on capital leases | -2,663 | -4,524 |
Repayments of long-term debt borrowings | -2,621 | -95 |
Dividend to Tops MBO Corporation | -2,382 | ' |
Deferred financing costs paid | -211 | -1,074 |
Change in bank overdraft position | -65 | -107 |
Net cash provided by (used in) financing activities | 2,108 | -5,800 |
Net (decrease) increase in cash and cash equivalents | -2,315 | 62 |
Cash and cash equivalents - beginning of period | 29,913 | 32,422 |
Cash and cash equivalent - end of period | $27,598 | $32,484 |
THE_COMPANY_BASIS_OF_PRESENTAT
THE COMPANY, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 4 Months Ended | ||||||||||||||||
Apr. 19, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
THE COMPANY, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||||||||
1. THE COMPANY, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||||
The Company | |||||||||||||||||
Tops Holding II Corporation (“Holding II” or “Company”), the parent of Tops Holding LLC (“Holding I”), formerly Tops Holding Corporation, was incorporated on May 7, 2013. Holding I is the parent of Tops Markets, LLC (“Tops Markets”), a supermarket retailer in Upstate New York, Northern Pennsylvania and Vermont. Holding I was incorporated on October 5, 2007 and commenced operations on December 1, 2007. As of April 19, 2014, the Company operated 155 supermarkets under the banners of Tops and Orchard Fresh, with an additional five supermarkets operated by franchisees. Holding I has no business operations other than the ownership of Tops Markets and as a co-issuer of the Holding I Notes (see Note 6). | |||||||||||||||||
On November 14, 2013, each of the sellers named therein (including Morgan Stanley Global Private Equity (“MSPE”)) (the “Sellers”), Tops MBO Corporation (“Tops MBO Co”) and Holding II signed a Purchase and Sale Agreement (the “Purchase and Sale Agreement”) pursuant to which Tops MBO Co agreed to purchase substantially all of the outstanding common stock of Holding II (the transactions contemplated by the Purchase and Sale Agreement, the “Management Purchase”). Tops MBO Co is owned and controlled by certain current members of management who formed Tops MBO Co to purchase such common stock from the Sellers. The Management Purchase closed effective December 1, 2013. The consummation of the Management Purchase was the result of arms’ length negotiations between the current members of management of Holding II and the former outside equity owners of Tops Holding II Corporation. Prior to the Management Purchase, members of management owned approximately 7% of the outstanding equity interests in Holding II, with certain private equity funds and other individuals owning the remaining equity interests. As a result of the Management Purchase, through their ownership of Tops MBO Co and through direct ownership of six shares of Holding II, those members of management now beneficially own all of the outstanding equity interests of Holding II. | |||||||||||||||||
The acquisition was accounted for as a purchase and “push down accounting” was required to be applied, with the result that purchase accounting adjustments were reflected in the Company’s financial statements. The application of push down purchase accounting resulted in a new basis of accounting in which the total cost of the purchase of Holding II was allocated to the assets acquired and liabilities assumed using estimates of fair values based on a preliminary allocation of the Tops MBO Co purchase price. Accordingly, these condensed consolidated financial statements refer to the Company in the period prior to the acquisition as the “Predecessor” and in the period subsequent to the acquisition as the “Successor.” For more information, see Note 2. | |||||||||||||||||
Holding II is the reporting entity for the Holding I Notes and Holding II Notes (see Note 6). Tops MBO Co is neither a co-issuer nor guarantor of these notes. Accordingly, the condensed consolidated financial statements have been prepared for Holding II and exclude the net assets and results of operations of Tops MBO Co. Tops MBO Co’s net assets consist solely of its investment in Holding II, a $12.3 million term loan (“MBO Co Loan”) entered into to partially fund the Management Purchase, and related deferred financing costs. Tops MBO Co has no operations other than as the borrower under the MBO Co Loan and its ownership of Holding II. | |||||||||||||||||
Change in Reporting Entity | |||||||||||||||||
Effective May 15, 2013, Holding I was converted to a limited liability company and Tops Markets II Corporation, a wholly-owned subsidiary of Holding I, was formed on May 14, 2013 and added as a co-issuer of the Holding I Notes (see Note 6). On May 15, 2013, the stockholders of Holding I contributed all of the outstanding shares of common stock of Holding I to Holding II in exchange for shares of common stock of Holding II. Holding II has no business operations other than the ownership of Holding I and as the issuer of the Holding II Notes (see Note 6). | |||||||||||||||||
On August 20, 2013, Holding II was added as a guarantor of the Holding I Notes, resulting in Holding II becoming the reporting entity related to these notes. The historical results of Holding I and its subsidiaries have been consolidated with Holding II as if Holding II were in existence for all periods presented to reflect the change in reporting entity. | |||||||||||||||||
Accounting Policies | |||||||||||||||||
A summary of the Company’s significant accounting policies is included in Note 1 to the audited consolidated financial statements of Holding II in its 2013 Special Report on Form 10-K. | |||||||||||||||||
Basis of Presentation and Principles of Consolidation | |||||||||||||||||
The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The condensed consolidated financial statements include the accounts of the Company and all of its subsidiaries. All intercompany transactions have been eliminated. | |||||||||||||||||
The Company operates on a 52/53 week fiscal year ending on the Saturday closest to December 31. Fiscal years include 13 four-week reporting periods, with an additional week in the thirteenth reporting period for 53-week fiscal years. The first quarter of each fiscal year includes four reporting periods, while the remaining quarters include three reporting periods. | |||||||||||||||||
The Company’s condensed consolidated financial statements for the 16-week periods ended April 19, 2014 and April 20, 2013 are unaudited, and, in the opinion of management, contain all adjustments that are of a normal and recurring nature necessary for a fair statement of financial position and results of operations for such periods. | |||||||||||||||||
Segments | |||||||||||||||||
The Company’s supermarkets offer grocery, produce, frozen, dairy, meat, floral, seafood, health and beauty care, general merchandise, deli and bakery goods. The Company operates one supermarket format where each supermarket offers the same general mix of products with similar pricing to similar categories of customers. As of April 19, 2014, 79 supermarkets offered pharmacy services and 52 fuel centers were in operation, inclusive of the Company’s franchise locations. The Company’s retail operations, which represent substantially all of the Company’s consolidated sales, earnings and total assets, are its only operating segment and reportable segment. The Company’s retail operations as a whole reflect the level at which the business is managed and how the Company’s Chief Executive Officer, who acts as the Company’s chief operating decision maker, assesses performance internally. | |||||||||||||||||
The following table presents sales revenue by type of similar product (dollars in thousands): | |||||||||||||||||
16-week periods ended | |||||||||||||||||
April 19, 2014 | April 20, 2013 | ||||||||||||||||
(Successor) | (Predecessor) | ||||||||||||||||
% of | % of | ||||||||||||||||
Amount | Total | Amount | Total | ||||||||||||||
Non-perishables(1) | $ | 424,428 | 56.1 | % | $ | 419,053 | 57 | % | |||||||||
Perishables(2) | 207,151 | 27.4 | % | 196,400 | 26.7 | % | |||||||||||
Fuel | 68,083 | 9 | % | 66,618 | 9.1 | % | |||||||||||
Pharmacy | 50,109 | 6.6 | % | 48,264 | 6.6 | % | |||||||||||
Other(3) | 6,768 | 0.9 | % | 5,474 | 0.6 | % | |||||||||||
$ | 756,539 | 100 | % | $ | 735,809 | 100 | % | ||||||||||
-1 | Non-perishables consist of grocery, dairy, frozen, general merchandise, health and beauty care and other non-perishable related products. | ||||||||||||||||
-2 | Perishables consist of produce, meat, seafood, bakery, deli, floral, prepared foods and other perishable related products. | ||||||||||||||||
-3 | Other primarily consists of franchise income and service commission income, such as lottery, money orders and money transfers. | ||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s condensed consolidated financial statements and notes thereto. The most significant estimates used by management are related to the accounting for vendor allowances, valuation of long-lived assets including goodwill and intangible assets, acquisition accounting, lease classification, self-insurance reserves, inventory valuation and income taxes. Actual results could differ from these estimates. | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
The provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, “Fair Value Measurements and Disclosures” establish a framework for measuring fair value and a hierarchy that categorizes and prioritizes the sources to be used to estimate fair value as follows: | |||||||||||||||||
Level 1 – observable inputs such as quoted prices in active markets; | |||||||||||||||||
Level 2 – inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs); and | |||||||||||||||||
Level 3 – unobservable inputs that reflect the Company’s determination of assumptions that market participants would use in pricing the asset or liability. These inputs are developed based on the best information available, including the Company’s own data. | |||||||||||||||||
Financial instruments include cash and cash equivalents, accounts receivable, accounts payable and long-term debt. The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the short-term nature of these financial instruments. At April 19, 2014 and December 28, 2013, the carrying value and the estimated fair value of the Company’s debt instruments were as follows (dollars in thousands): | |||||||||||||||||
April 19, 2014 | December 28, 2013 | ||||||||||||||||
Carrying value of long-term debt: | |||||||||||||||||
Current portion of long-term debt | $ | 501 | $ | 2,309 | |||||||||||||
Long-term debt | 662,693 | 664,186 | |||||||||||||||
Total carrying value of long-term debt | 663,194 | 666,495 | |||||||||||||||
Fair value of long-term debt | 714,528 | 719,861 | |||||||||||||||
Excess of fair value over carrying value | $ | 51,334 | $ | 53,366 | |||||||||||||
The fair value of the Company’s senior notes, which are included in long-term debt, was based on quoted market prices, a Level 1 source. The fair value of the Company’s other long-term debt was based on the net present value of future cash flows using estimated applicable market interest rates for the Company at April 19, 2014 and December 28, 2013, a Level 3 measurement technique. | |||||||||||||||||
Fair value measurements of non-financial assets and non-financial liabilities are primarily used in the impairment analysis of long-lived assets, goodwill and intangible assets. Long-lived assets and definite-lived intangible assets are measured at fair value on a nonrecurring basis using Level 3 inputs. Goodwill and the Tops tradename are reviewed annually for impairment on December 1, or more frequently, if impairment indicators arise. |
BUSINESS_ACQUISITION
BUSINESS ACQUISITION | 4 Months Ended | ||||
Apr. 19, 2014 | |||||
Business Combinations [Abstract] | ' | ||||
BUSINESS ACQUISITION | ' | ||||
2. BUSINESS ACQUISITION | |||||
On December 1, 2013, the Management Purchase was consummated. Following the Management Purchase, primarily through their ownership of Tops MBO Co, management now beneficially owns all of the outstanding equity interests of Holding II. Accordingly, the Company was required to apply “push down” accounting, with the results of the Management Purchase reflected in Holding II’s condensed consolidated financial statements. The application of “push down” accounting has resulted in a new basis of accounting in which the total purchase price paid by Tops MBO Co has been allocated to the assets acquired and liabilities assumed using preliminary estimates of their fair values under the acquisition method of accounting in accordance with ASC 805, “Business Combinations” (“ASC 805”). In addition to the cash consideration of $20.9 million paid to the Sellers, the Company incurred $15.8 million of transaction costs during late Fiscal 2013. | |||||
Under the acquisition method of accounting, the aggregate purchase price is allocated to the net tangible and intangible assets based upon their estimated fair values on the acquisition date. The Company engaged a third party valuation specialist to assist with the valuation of assets acquired. As the values of certain assets and liabilities are preliminary in nature, the fair values for inventory, property and equipment, favorable and unfavorable lease rights, the tradename, customer relationships, franchise agreements, deferred income taxes and goodwill are subject to adjustment as additional information is obtained. For purposes of a preliminary allocation of the assets acquired and liabilities assumed, the excess of the purchase price over the estimated fair value of net tangible and intangible assets has been assigned to goodwill, which is not tax deductible. The purchase price allocations will be finalized within twelve months of the closing of the Management Purchase. When the valuations are finalized, changes to the preliminary valuation of assets acquired or liabilities assumed may result in material adjustments to the fair value of property and equipment, identifiable intangible assets acquired, including the tradename, deferred income taxes and any related goodwill initially recorded. | |||||
The preliminary fair value of inventory was determined based upon the Company’s estimated selling prices, less estimated costs to sell, disposition costs and normal profit margin. The preliminary fair values of buildings, personal property and site improvements, all of which are included in property and equipment in the succeeding table, were determined using the cost approach. The preliminary fair value of land was determined using the market approach. The preliminary fair values of intangible assets were primarily determined using the income approach which, for the tradename, is based upon the present value of the economic royalty savings associated with the tradename and revenue projections attributed to the tradename. The discount rate applied to the value of intangible assets ranges between 14% and 16%, which were benchmarked with reference to the implied rate of return from the transaction model as well as an estimate of a market participant’s weighted average cost of capital on the capital asset pricing model. | |||||
The Company had gross deferred tax assets of $50.1 million as of the acquisition date, of which $24.4 million related to historical net operating losses (“NOLs”). These historical deferred tax assets were offset by deferred tax liabilities of $11.5 million, as well as a valuation allowance of $43.9 million. | |||||
The Company conducted an analysis to determine the impact of the acquisition on its ability to utilize the NOLs. The analysis concluded that the Company incurred a change in ownership within the meaning of Section 382 of the Internal Revenue Code (“IRC Section 382”). In general, IRC Section 382 places annual limitations on the use of certain tax attributes such as NOLs in existence as of the ownership change date. The preliminary IRC Section 382 calculation indicates that the change in ownership will not impact the Company’s ability to use certain tax attributes. The IRC Section 382 annual limitation has not yet been finalized. Once the study has been finalized, it could have a material impact on the gross deferred tax assets recognized at the time of the acquisition. | |||||
Goodwill resulting from the Management Purchase is not tax deductible. Acquisition accounting adjustments to the fair value of intangible assets, property and equipment and certain other assets and liabilities will also not be deductible for tax purposes. In accordance with ASC 805, preliminary incremental net deferred tax liabilities of $86.4 million related to acquisition accounting adjustments have been established as of the acquisition date with a corresponding adjustment to goodwill. | |||||
Due to preliminary net deferred tax liabilities recognized in conjunction with definite-lived intangible assets, property and equipment and certain other assets acquired and liabilities assumed, it was determined that it was more likely than not that the Company will be able to utilize deferred tax assets related to future tax deductions, and as such, the Company reversed the valuation allowance of $43.9 million related to acquired deferred tax assets, including NOLs, with a corresponding adjustment to goodwill. | |||||
The following table summarizes the preliminary allocation of the purchase price to the assets acquired and liabilities assumed as of the transaction date (dollars in thousands): | |||||
Assets acquired: | |||||
Cash | $ | 25,149 | |||
Accounts receivable | 66,244 | ||||
Inventory | 149,911 | ||||
Prepaid expenses | 14,905 | ||||
Income taxes refundable | 116 | ||||
Deferred tax assets | 1,122 | ||||
Property and equipment | 385,811 | ||||
Goodwill | 217,406 | ||||
Intangible assets | 194,300 | ||||
Other assets | 19,456 | ||||
Total assets acquired | 1,074,420 | ||||
Liabilities assumed: | |||||
Accounts payable | 81,588 | ||||
Accrued expenses and other current liabilities | 113,544 | ||||
Other long-term liabilities | 31,196 | ||||
Capital lease obligations | 124,149 | ||||
Long-term debt | 654,177 | ||||
Deferred tax liabilities | 48,906 | ||||
Total liabilities assumed | 1,053,560 | ||||
Acquisition price | $ | 20,860 | |||
The factors contributing to the recognition of goodwill were based upon the Company’s determination that several strategic and synergistic benefits are expected to be realized from the Management Purchase. Goodwill represents the purchase price paid in excess of the fair value of the net assets acquired and liabilities assumed at December 1, 2013. | |||||
The following table summarizes the Company’s unaudited pro forma operating results for the 16-week period ended April 20, 2013, giving effect to the Management Purchase as if it occurred on December 30, 2012 (dollars in thousands): | |||||
Net sales | $ | 735,809 | |||
Operating loss | (5,685 | ) | |||
Net loss | (25,084 | ) | |||
The pro forma information above reflects the $15.8 million of transaction costs incurred by the Company during late Fiscal 2013 within the operating results of the 16-week period ended April 20, 2013. This pro forma financial information is not intended to represent or be indicative of what would have occurred if the transaction had taken place prior to the beginning of the period presented and should not be taken as representative of the Company’s future consolidated results of operations. |
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS, NET | 4 Months Ended | ||||||||||||||||
Apr. 19, 2014 | |||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS, NET | ' | ||||||||||||||||
3. GOODWILL AND INTANGIBLE ASSETS, NET | |||||||||||||||||
The following table summarizes the change in the Company’s goodwill balance during the 16-week period ended April 19, 2014 (dollars in thousands): | |||||||||||||||||
Balance – December 28, 2013 | $ | 217,406 | |||||||||||||||
Balance – April 19, 2014 | $ | 217,406 | |||||||||||||||
Goodwill is reviewed annually for impairment on December 1, or more frequently upon the occurrence of trigger events. Based on the Company’s assessment, no goodwill impairments were recorded during the 16-week periods ended April 19, 2014 and April 20, 2013. | |||||||||||||||||
Intangible assets, net of accumulated amortization, consist of the following (dollars in thousands): | |||||||||||||||||
Weighted | |||||||||||||||||
Gross | Net | Average | |||||||||||||||
Carrying | Accumulated | Carrying | Amortization | ||||||||||||||
April 19, 2014 | Amount | Amortization | Amount | Period | |||||||||||||
Tradename – indefinite | $ | 131,000 | $ | — | $ | 131,000 | Indefinite life | ||||||||||
Customer relationships | 28,400 | (2,761 | ) | 25,639 | 14 | ||||||||||||
Favorable lease rights | 21,600 | (1,168 | ) | 20,432 | 9 | ||||||||||||
Franchise agreements | 13,300 | (761 | ) | 12,539 | 14 | ||||||||||||
$ | 194,300 | $ | (4,690 | ) | $ | 189,610 | 12.3 | ||||||||||
Gross | Net | ||||||||||||||||
Carrying | Accumulated | Carrying | |||||||||||||||
December 28, 2013 | Amount | Amortization | Amount | ||||||||||||||
Tradename – indefinite | $ | 131,000 | $ | — | $ | 131,000 | |||||||||||
Customer relationships | 28,400 | (568 | ) | 27,832 | |||||||||||||
Favorable lease rights | 21,600 | (233 | ) | 21,367 | |||||||||||||
Franchise agreements | 13,300 | (160 | ) | 13,140 | |||||||||||||
$ | 194,300 | $ | (961 | ) | $ | 193,339 | |||||||||||
The Tops tradename is reviewed annually for impairment on December 1, or more frequently, if impairment indicators arise. Based on the Company’s assessment, no impairment was recorded during the 16-week periods ended April 19, 2014 and April 20, 2013. | |||||||||||||||||
During the 16-week periods ended April 19, 2014 and April 20, 2013, amortization expense related to intangible assets was $3.7 million and $2.6 million, respectively. Such amortization is included in depreciation and amortization in the condensed consolidated statements of comprehensive loss. | |||||||||||||||||
Depreciation and amortization in the condensed consolidated statements of comprehensive loss during the 16-week periods ended April 19, 2014 and April 20, 2013 includes $0.1 million and $0.5 million, respectively, of contra-expense related to the amortization of unfavorable lease rights which are classified in other long-term liabilities in the condensed consolidated balance sheets. Expected future amortization of these unfavorable lease rights is contra-expense of $0.2 million in the remaining period of Fiscal 2014, $0.4 million in Fiscal 2015, $0.4 million in Fiscal 2016, $0.4 million in Fiscal 2017, $0.4 million in Fiscal 2018 and $1.4 million thereafter. | |||||||||||||||||
As of April 19, 2014, expected future amortization of intangible assets is as follows (dollars in thousands): | |||||||||||||||||
2014 (remaining period) | $ | 8,390 | |||||||||||||||
2015 | 10,729 | ||||||||||||||||
2016 | 7,724 | ||||||||||||||||
2017 | 6,557 | ||||||||||||||||
2018 | 5,633 | ||||||||||||||||
Thereafter | 19,577 |
ACCRUED_EXPENSES_AND_OTHER_CUR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 4 Months Ended | ||||||||
Apr. 19, 2014 | |||||||||
Text Block [Abstract] | ' | ||||||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ' | ||||||||
4. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |||||||||
Accrued expenses and other current liabilities consist of the following (dollars in thousands): | |||||||||
April 19, 2014 | December 28, 2013 | ||||||||
Interest payable | $ | 18,844 | $ | 2,272 | |||||
Wages, taxes and benefits | 16,992 | 18,391 | |||||||
Lottery | 12,122 | 10,519 | |||||||
Property and equipment expenditures | 8,755 | 4,285 | |||||||
Self-insurance reserves | 6,033 | 6,033 | |||||||
Union medical, pension and 401(k) | 4,104 | 4,589 | |||||||
Professional and legal fees | 3,638 | 18,854 | |||||||
Sales and use tax | 3,553 | 6,279 | |||||||
Gift cards | 3,333 | 7,312 | |||||||
Utilities | 2,821 | 2,714 | |||||||
Repairs and maintenance | 1,741 | 2,539 | |||||||
Money orders | 1,448 | 1,456 | |||||||
Other | 10,938 | 12,988 | |||||||
$ | 94,322 | $ | 98,231 | ||||||
The decrease in accrued professional and legal fees as of April 19, 2014 compared with December 28, 2013 is largely due to $15.0 million of transaction fees incurred in the Management Purchase that were accrued as of December 28, 2013 and paid during the 16-week period ended April 19, 2014. |
CAPITAL_LEASE_OBLIGATIONS
CAPITAL LEASE OBLIGATIONS | 4 Months Ended | ||||
Apr. 19, 2014 | |||||
Leases [Abstract] | ' | ||||
CAPITAL LEASE OBLIGATIONS | ' | ||||
5. CAPITAL LEASE OBLIGATIONS | |||||
The Company has a number of capital leases in effect for store properties and equipment. The initial lease terms generally range up to twenty-five years and will expire at various times through 2034, with options to renew for additional periods. The majority of the store leases provide for base rental, plus real estate taxes, insurance, common area maintenance and other operating expenses applicable to the leased premises. Some leases contain escalation clauses for future rents and contingent rents based on sales volume. | |||||
As of April 19, 2014, future minimum lease rental payments applicable to non-cancelable capital lease obligations were as follows (dollars in thousands): | |||||
2014 (remaining period) | $ | 20,591 | |||
2015 | 27,308 | ||||
2016 | 25,988 | ||||
2017 | 22,833 | ||||
2018 | 19,625 | ||||
Thereafter | 80,626 | ||||
Total minimum lease payments | 196,971 | ||||
Less amounts representing interest | (127,975 | ) | |||
Present value of net minimum lease payments | 68,996 | ||||
Less current obligations | (8,583 | ) | |||
Long-term cash obligations | 60,413 | ||||
Non-cash obligations | 68,552 | ||||
Total long-term capital lease obligations | $ | 128,965 | |||
The Company has entered into build-to-suit and sale-leaseback transactions in various years involving certain properties that did not qualify for sale-leaseback accounting as the lease agreements included various forms of continuing involvement. Such transactions include the sale-leaseback of three properties for cash proceeds of $12.8 million during the 16-week period ended April 19, 2014. These transactions have been classified as financing transactions in accordance with ASC Topic 840, “Leases,” due to the existence of prohibited forms of continuing involvement. | |||||
Under the financing method, the assets remain on the condensed consolidated balance sheet and proceeds received by the Company from these transactions are recorded as capital lease obligations, allocated between land, as applicable, and building. Payments under these leases are applied as payments of imputed interest and deemed principal on the underlying building obligations, with no underlying cash payments deemed attributable to the land obligations, and the estimated future value of the buildings at the conclusion of the lease terms. The related land assets are not depreciated, and at the end of the lease terms, the remaining capital lease obligations will equal the combined net book values of the land and buildings. These capital lease obligations are reflected as non-cash obligations in the preceding table. At the expiration of the lease terms, which range from 2023 to 2068, or when the Company’s continuing involvement under the lease agreements ends, the related land, buildings and obligations will be removed from the balance sheet, with no underlying cash payments. |
DEBT
DEBT | 4 Months Ended | ||||||||
Apr. 19, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
DEBT | ' | ||||||||
6. DEBT | |||||||||
Long-term debt is comprised of the following (dollars in thousands): | |||||||||
April 19, 2014 | December 28, 2013 | ||||||||
Holding I Notes | $ | 460,000 | $ | 460,000 | |||||
Holding II Notes | 150,000 | 150,000 | |||||||
Discount on Holding II Notes | (1,277 | ) | (1,353 | ) | |||||
2017 ABL Facility | 52,100 | 54,800 | |||||||
Other loans | 2,371 | 2,604 | |||||||
Mortgage note payable | — | 444 | |||||||
Total debt | 663,194 | 666,495 | |||||||
Current portion | (501 | ) | (2,309 | ) | |||||
Total long-term debt | $ | 662,693 | $ | 664,186 | |||||
On May 15, 2013, Holding II issued $150.0 million of unsecured senior notes, bearing cash interest of 8.75% (the “Holding II Notes”). If certain conditions are met, Holding II may be entitled to pay interest on the Holding II Notes by increasing the principal of the notes or by issuing new notes as pay-in-kind interest. Such interest would accrue at a rate of 9.50%. The $148.5 million proceeds from the Holding II Notes issuance, net of a $1.5 million original issue discount, were used to pay a $141.9 million, or $980 per share, dividend to the Holding II shareholders. The Holding II Notes mature June 15, 2018 and require semi-annual interest payments on June 15 and December 15. To the extent permitted by the agreements governing the Holding I Notes (see below) and the 2017 ABL Facility (see below), Holding I may make dividend payments to Holding II to fund the semi-annual interest payments related to the Holding II Notes. The Holding II Notes are redeemable, in whole or in part, at any time on or after June 15, 2015 at specified redemption prices. Prior to June 15, 2015, the Company may redeem some or all of the Holding II Notes at a specified “make-whole” premium. | |||||||||
On December 20, 2012, Holding I and Tops Markets (collectively, the “Issuers”) issued $460.0 million of senior secured notes, bearing interest of 8.875% (the “Holding I Notes”). Effective May 15, 2013, Tops Markets II Corporation was added as a co-issuer of the Holding I Notes. On August 20, 2013, Holding II was added as a guarantor of the Holding I Notes. The proceeds from the Holding I Notes were used to redeem the previously outstanding $350.0 million senior secured notes, pay a $100.0 million dividend to the Holding I shareholders and pay fees and expenses related to the notes issuance. The Holding I Notes mature December 15, 2017 and require semi-annual interest payments on June 15 and December 15. The Holding I Notes are redeemable, in whole or in part, at any time on or after June 15, 2015 at specified redemption prices. Prior to June 15, 2015, the Issuers may redeem some or all of the Holding I Notes at a specified “make-whole” premium. | |||||||||
The Holding I Notes are collateralized by (i) first priority interests, subject to certain exceptions and permitted liens, in the stock held by Holding II, the Issuers, Tops Markets II Corporation and the guarantor subsidiaries, Tops PT, LLC, Tops Gift Card Company, LLC and Erie Logistics, LLC (collectively, the “Guarantors”), the Company’s warehouse distribution facility in Lancaster, New York, the Company’s retail facility located in Fayetteville, New York and certain owned real property acquired by the Issuers and the Guarantors following the issue date of the Holding I Notes, equipment, intellectual property, and substantially all other assets of the Issuers and the Guarantors, other than assets securing the Company’s asset-based revolving credit facility (the “2017 ABL Facility”) on a first priority basis (collectively, the “Holding I Notes Priority Collateral”), and (ii) second priority interests, subject to certain exceptions and permitted liens, in the assets of the Issuers and the Guarantors that secure the 2017 ABL Facility on a first-priority basis, including present and future receivables, deposit accounts, inventory, prescription lists, and certain rights and proceeds relating thereto (collectively, the “ABL Priority Collateral”). | |||||||||
On December 14, 2012, Tops Markets entered into an amended and restated asset-based revolving credit facility (the “2017 ABL Facility”) with Bank of America, N.A., as collateral agent and administrative agent. The 2017 ABL Facility allows a maximum borrowing capacity of $125.0 million, subject to a borrowing base calculation, with an option for future upsizing with up to $50.0 million of additional commitments if certain conditions are met. The borrowing base includes inventory, pharmacy prescription files and certain receivables. On November 14, 2013, certain provisions of the 2017 ABL Facility were amended in conjunction with the Management Purchase. The amended provisions are in effect until May 14, 2015 which: (1) limit permitted acquisitions to store purchases of no more than $10.0 million annually, (2) limit total capital expenditures to no more than $60.0 million per year for each of the 2014 and 2015 fiscal years, and (3) require minimum excess availability of $10.0 million as of the amendment effective date, reduced by $2.25 million per quarter. The 2017 ABL Facility will mature on December 14, 2017. | |||||||||
Based upon the borrowing base calculation as of April 19, 2014, the unused availability under the 2017 ABL Facility was $33.9 million, after giving effect to $22.4 million of letters of credit outstanding thereunder. As of December 28, 2013, $17.6 million of letters of credit were outstanding under the 2017 ABL Facility. Revolving loans under the 2017 ABL Facility, at the Company’s option, bear interest at either i) LIBOR plus a margin of 150 to 200 basis points, determined based on levels of borrowing availability, or ii) the prime rate plus a margin of 50 to 100 basis points, determined based on levels of borrowing availability. As of April 19, 2014 and December 28, 2013, the effective interest rates on borrowings under the 2017 ABL Facility were 2.04% and 1.90%, respectively. The 2017 ABL Facility is collateralized primarily by (i) first priority interests, subject to certain exceptions and permitted liens, in the ABL Priority Collateral and (ii) second priority interests, subject to certain exceptions and permitted liens, in the Holding I Notes Priority Collateral. | |||||||||
The instruments governing the Holding II Notes, Holding I Notes and the 2017 ABL Facility impose customary affirmative and negative covenants on the Company, including restrictions on indebtedness, liens, type of business, acquisitions, investments, sale or transfer of assets, payment of dividends, transactions involving affiliates, and obligations on a change in control. Failure to meet any of these covenants would be an event of default. | |||||||||
On November 29, 2013, Tops MBO Co entered into the $12.3 million MBO Co Loan to partially fund the Management Purchase. The MBO Co Loan bears cash interest of LIBOR plus a margin of 300 basis points, with six quarterly principal and interest payments that began March 31, 2014. Holding II and its subsidiaries are neither co-issuers nor guarantors of the MBO Co Loan, and none of the assets or stock of Holding II are pledged as collateral for the MBO Co Loan. Accordingly, the MBO Co Loan has not been pushed down to the condensed consolidated financial statements of Holding II. If certain conditions are met related to the Holding II Notes, Holding I Notes and the 2017 ABL Facility, Holding II may pay dividends to Tops MBO Co to fund the principal and interest payments required by the MBO Co Loan. |
INCOME_TAXES
INCOME TAXES | 4 Months Ended | ||||||||
Apr. 19, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
INCOME TAXES | ' | ||||||||
7. INCOME TAXES | |||||||||
Income tax benefit (expense) was as follows (dollars in thousands): | |||||||||
16-week periods ended | |||||||||
April 19, 2014 | April 20, 2013 | ||||||||
(Successor) | (Predecessor) | ||||||||
Current | $ | (17 | ) | $ | 1 | ||||
Deferred | 2,514 | (428 | ) | ||||||
Total income tax benefit (expense) | $ | 2,497 | $ | (427 | ) | ||||
The income tax benefit for the 16-week period ended April 19, 2014 primarily reflects the loss before income taxes, net of the establishment of valuation allowance against deferred tax assets. The overall effective tax rate was 15.4%. The effective tax rate would have been 41.5% without the impact of the valuation allowance establishment. | |||||||||
The income tax expense for the 16-week period ended April 20, 2013 primarily reflects the recognition of additional valuation allowance associated with the Company’s indefinite-lived tradename and goodwill deferred tax liabilities. The overall effective tax rate was (11.3)%. The effective tax rate would have been 39.0% without the impact of adjustments to the valuation allowance. |
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 4 Months Ended |
Apr. 19, 2014 | |
Equity [Abstract] | ' |
SHAREHOLDERS' EQUITY | ' |
8. SHAREHOLDERS’ EQUITY | |
On March 31, 2014, the Company made a dividend of $2.4 million to Tops MBO Co to fund the first quarterly principal and interest payment under the MBO Co Loan. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 4 Months Ended |
Apr. 19, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
9. COMMITMENTS AND CONTINGENCIES | |
Purchase Commitments | |
Effective December 22, 2013, the Company modified its existing supply agreement with C&S Wholesale Grocers, Inc. (“C&S”) whereby Tops Markets will resume warehousing and transportation functions while C&S will continue to provide procurement and purchasing services in support of the majority of the Company’s supply chain. This modified supply agreement, which expires on September 24, 2016, sets out the parties’ respective responsibilities for the procurement and purchase of merchandise intended for use or resale in our supermarkets. In consideration for the services it provides under the agreement, C&S is paid a fee based on all merchandise procured and also has incentive income opportunities. | |
On September 24, 2012, the Company entered into a supplemental supply agreement with C&S to provide similar services in support of the 21 supermarkets acquired from Grand Union Markets, LLC in October 2013 (the “GU Acquisition”). This agreement expires on September 23, 2022. | |
Effective May 1, 2013, Tops Markets entered into a member participation agreement with Topco Associates, LLC (“Topco”), a procurement cooperative for food retailers and wholesalers, for the supply of substantially all of the Company’s prescription drugs. Tops Markets must purchase 95% of its branded and generic prescription merchandise through Topco. This agreement expires February 28, 2017. The Company’s previous supply agreement for these products with McKesson Corporation was terminated without penalty. | |
Effective July 24, 2010, the Company extended its existing IT outsourcing agreement with HP Enterprise Services, LLC (“HP”) through December 31, 2017 to provide a wide range of information systems services. Under the agreement, HP provides data center operations, mainframe processing, business applications and systems development to enhance the Company’s customer service and efficiency. The charges under this agreement are based upon the services requested at predetermined rates. | |
The costs of these purchase commitments are not reflected in the Company’s condensed consolidated balance sheets. | |
Environmental Liabilities | |
The Company is contingently liable for potential environmental issues of some of its properties. As the Company is unaware of environmental issues that are expected to materially impact the Company’s condensed consolidated financial statements as a whole, no amounts were accrued as of April 19, 2014 or December 28, 2013. | |
Collective Bargaining Agreements | |
The Company employs approximately 15,000 associates. Approximately 83% of these associates are members of United Food and Commercial Workers, or UFCW, District Union Local One, or Local One, or two other UFCW unions. Approximately 4% are members of Teamsters Local 264, working within our warehouse and distribution facilities. All other associates are non-union, with approximately 23% serving in the Company’s supermarkets acquired in the GU Acquisition. The Company is a party to six collective bargaining agreements with Local One. Four of these agreements expired in March and April 2014, while the remaining two agreements expire in August 2014 and October 2015. The expired agreements have been extended indefinitely while the parties negotiate new agreements. The Company has a non-Local One UFCW collective bargaining agreement expiring in February 2015, and another non-Local One UFCW collective bargaining agreement that expires in April 2016. The Company is also party to three collective bargaining agreements with Teamsters Local 264 expiring in August 2019. | |
Multiemployer Pension Plan | |
On December 22, 2013, Tops Markets acquired all of the membership interests of Erie Logistics, LLC (“Erie Logistics”) and certain other assets from C&S. Erie Logistics operates the Company’s warehouse distribution facility located in Lancaster, New York and employs the warehouse personnel at the facility, all of whom are represented by Teamsters Local 264. Under its supply agreement with Tops Markets, C&S, through Erie Logistics, had operated the Lancaster facility since 2002. | |
In late January 2014, the Company received notice that the New York State Teamsters Conference Pension and Retirement Fund (the “Fund”) had suspended Erie Logistics as a participating employer in the Fund pending the Fund’s investigation into the acquisition. This suspension was retroactive to the effective date of the acquisition of Erie Logistics from C&S. During this “suspension” the Company has continued to make contributions to the Fund as required by the collective bargaining agreements with Teamsters Local 264. The Fund has rejected and returned these contributions. During the 16-week period ended April 19, 2014, these rejected contributions totaled $1.4 million. On May 27, 2014, the Fund provided Erie Logistics and C&S with notice of its determination that Erie Logistics incurred employer withdrawal liability as a result of the acquisition. The notice provides that Erie Logistics owes withdrawal liability of $183.7 million, payable in a lump sum or in monthly installments of $641,514 for 240 months. | |
The Company believes that the Fund’s determination of a withdrawal violates ERISA, the existing participation agreements between Erie Logistics and the Fund, and the fiduciary duties of the trustees of the Fund. The Company intends to vigorously contest this determination initially through mandatory arbitration under ERISA. | |
The Company has not recorded any reserve for this matter as a loss is not considered probable. If it were ultimately determined that Erie Logistics has incurred a withdrawal liability to the Fund, the Company would bear financial responsibility for this liability. Under the terms of the purchase agreement for the acquisition, and as a continuation of our prior contractual obligations, the Company retains the obligation to indemnify C&S in the event withdrawal liability is imposed on Erie Logistics for which C&S is jointly liable. During the pendency of the proceeding to contest the withdrawal determination, ERISA requires that conditional monthly payments of withdrawal liability be made, beginning July 28, 2014. These monthly conditional payments of withdrawal liability are in addition to pension contributions the Company may make in replacement of the contributions formerly made to the Fund for the benefit of the Erie Logistics’ associates. | |
Legal Proceedings | |
The Company is unaware of legal proceedings that are expected to materially impact the Company’s condensed consolidated financial statements as a whole. No amounts related to legal proceedings were accrued as of April 19, 2014 or December 28, 2013. |
GUARANTOR_FINANCIAL_STATEMENTS
GUARANTOR FINANCIAL STATEMENTS | 4 Months Ended | ||||||||||||||||||||||||
Apr. 19, 2014 | |||||||||||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||||||||||
GUARANTOR FINANCIAL STATEMENTS | ' | ||||||||||||||||||||||||
10. GUARANTOR FINANCIAL STATEMENTS | |||||||||||||||||||||||||
The obligations of Holding I, Tops Markets and Tops Markets II Corporation under the Holding I Notes are jointly and severally, fully and unconditionally guaranteed by Holding II, the parent of Holding I, and Tops Gift Card Company, LLC, Tops PT, LLC and Erie Logistics, LLC (“Guarantor Subsidiaries”), all of which are 100% owned subsidiaries of Tops Markets. Holding II was established in May 2013, Tops Gift Card Company, LLC was established in October 2008, Tops PT, LLC was established in January 2010, and Erie Logistics, LLC was acquired in December 2013. Tops Markets and Tops Markets II Corporation are joint issuers of the Holding I notes and are 100% owned by Holding I. Separate financial statements of Holding II, Holding I, Tops Markets, Tops Markets II Corporation and of the Guarantor Subsidiaries are not presented as the guarantees are full and unconditional and Holding II and the Guarantor Subsidiaries are jointly and severally liable thereon. | |||||||||||||||||||||||||
The following supplemental financial information sets forth, on a condensed consolidating basis, balance sheets as of April 19, 2014 and December 28, 2013 for Holding II, Holding I, Tops Markets, the Guarantor Subsidiaries, and for the Company, statements of comprehensive loss for the 16-week periods ended April 19, 2014 and April 20, 2013, and statements of cash flows for 16-week periods ended April 19, 2014 and April 20, 2013. Supplemental financial information has not been presented for Tops Markets II Corporation as it is a finance subsidiary. | |||||||||||||||||||||||||
TOPS HOLDING II CORPORATION | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEET | |||||||||||||||||||||||||
APRIL 19, 2014 | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Tops Holding | Tops Holding | Guarantor | |||||||||||||||||||||||
II Corporation | LLC | Tops Markets, LLC | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 26,773 | $ | 825 | $ | — | $ | 27,598 | |||||||||||||
Accounts receivable, net | — | — | 50,844 | 11,328 | — | 62,172 | |||||||||||||||||||
Intercompany receivables | — | — | 83,780 | 4,162 | (87,942 | ) | — | ||||||||||||||||||
Inventory, net | — | — | 102,390 | 35,989 | — | 138,379 | |||||||||||||||||||
Prepaid expenses and other current assets | — | — | 13,219 | 3,278 | — | 16,497 | |||||||||||||||||||
Income taxes refundable | — | — | 58 | — | — | 58 | |||||||||||||||||||
Current deferred tax assets | — | — | 6,129 | — | — | 6,129 | |||||||||||||||||||
Total current assets | — | — | 283,193 | 55,582 | (87,942 | ) | 250,833 | ||||||||||||||||||
Property and equipment, net | — | — | 333,850 | 52,607 | — | 386,457 | |||||||||||||||||||
Goodwill | — | — | 20,710 | 196,696 | — | 217,406 | |||||||||||||||||||
Intangible assets, net | — | — | 139,657 | 49,953 | — | 189,610 | |||||||||||||||||||
Other assets | 5,954 | — | 13,481 | 3,041 | (4,674 | ) | 17,802 | ||||||||||||||||||
Investment in subsidiaries | 149,543 | 155,243 | 203,321 | — | (508,107 | ) | — | ||||||||||||||||||
Total assets | $ | 155,497 | $ | 155,243 | $ | 994,212 | $ | 357,879 | $ | (600,723 | ) | $ | 1,062,108 | ||||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Accounts payable | $ | — | $ | — | $ | 63,923 | $ | 17,540 | $ | — | $ | 81,463 | |||||||||||||
Intercompany payables | — | 5,700 | 4,162 | 78,080 | (87,942 | ) | — | ||||||||||||||||||
Accrued expenses and other current liabilities | 4,521 | — | 71,613 | 18,188 | — | 94,322 | |||||||||||||||||||
Current portion of capital lease obligations | — | — | 8,296 | 287 | — | 8,583 | |||||||||||||||||||
Current portion of long-term debt | — | — | 470 | 31 | — | 501 | |||||||||||||||||||
Total current liabilities | 4,521 | 5,700 | 148,464 | 114,126 | (87,942 | ) | 184,869 | ||||||||||||||||||
Capital lease obligations | — | — | 117,324 | 11,641 | — | 128,965 | |||||||||||||||||||
Long-term debt | 148,723 | — | 516,446 | 565 | (3,041 | ) | 662,693 | ||||||||||||||||||
Other long-term liabilities | — | — | 28,161 | 5,437 | — | 33,598 | |||||||||||||||||||
Non-current deferred tax liabilities | — | — | 28,574 | 22,789 | (1,633 | ) | 49,730 | ||||||||||||||||||
Total liabilities | 153,244 | 5,700 | 838,969 | 154,558 | (92,616 | ) | 1,059,855 | ||||||||||||||||||
Total shareholders’ equity | 2,253 | 149,543 | 155,243 | 203,321 | (508,107 | ) | 2,253 | ||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 155,497 | $ | 155,243 | $ | 994,212 | $ | 357,879 | $ | (600,723 | ) | $ | 1,062,108 | ||||||||||||
TOPS HOLDING II CORPORATION | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEET | |||||||||||||||||||||||||
DECEMBER 28, 2013 | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Tops Holding | Tops Holding | Guarantor | |||||||||||||||||||||||
II Corporation | LLC | Tops Markets, LLC | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 29,051 | $ | 862 | $ | — | $ | 29,913 | |||||||||||||
Accounts receivable, net | — | — | 52,453 | 12,068 | — | 64,521 | |||||||||||||||||||
Intercompany receivables | — | — | 78,963 | 6,093 | (85,056 | ) | — | ||||||||||||||||||
Inventory, net | — | — | 106,487 | 35,809 | — | 142,296 | |||||||||||||||||||
Prepaid expenses and other current assets | — | — | 7,817 | 2,938 | — | 10,755 | |||||||||||||||||||
Income taxes refundable | — | — | 110 | — | — | 110 | |||||||||||||||||||
Current deferred tax assets | — | — | 6,129 | — | — | 6,129 | |||||||||||||||||||
Total current assets | — | — | 281,010 | 57,770 | (85,056 | ) | 253,724 | ||||||||||||||||||
Property and equipment, net | — | — | 317,547 | 68,034 | — | 385,581 | |||||||||||||||||||
Goodwill | — | — | 51,207 | 166,199 | — | 217,406 | |||||||||||||||||||
Intangible assets, net | — | — | 142,955 | 50,384 | — | 193,339 | |||||||||||||||||||
Other assets | 6,309 | — | 12,999 | 3,041 | (3,363 | ) | 18,986 | ||||||||||||||||||
Investment in subsidiaries | 161,144 | 166,844 | 201,321 | — | (529,309 | ) | — | ||||||||||||||||||
Total assets | $ | 167,453 | $ | 166,844 | $ | 1,007,039 | $ | 345,428 | $ | (617,728 | ) | $ | 1,069,036 | ||||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Accounts payable | $ | — | $ | — | $ | 62,971 | $ | 16,729 | $ | — | $ | 79,700 | |||||||||||||
Intercompany payables | — | 5,700 | 6,093 | 73,263 | (85,056 | ) | — | ||||||||||||||||||
Accrued expenses and other current liabilities | 510 | — | 73,363 | 24,358 | — | 98,231 | |||||||||||||||||||
Current portion of capital lease obligations | — | — | 7,918 | 396 | — | 8,314 | |||||||||||||||||||
Current portion of long-term debt | — | — | 2,279 | 30 | — | 2,309 | |||||||||||||||||||
Total current liabilities | 510 | 5,700 | 152,624 | 114,776 | (85,056 | ) | 188,554 | ||||||||||||||||||
Capital lease obligations | — | — | 111,745 | 2,541 | — | 114,286 | |||||||||||||||||||
Long-term debt | 148,647 | — | 518,007 | 573 | (3,041 | ) | 664,186 | ||||||||||||||||||
Other long-term liabilities | — | — | 26,730 | 4,740 | — | 31,470 | |||||||||||||||||||
Non-current deferred tax liabilities | — | — | 31,089 | 21,477 | (322 | ) | 52,244 | ||||||||||||||||||
Total liabilities | 149,157 | 5,700 | 840,195 | 144,107 | (88,419 | ) | 1,050,740 | ||||||||||||||||||
Total shareholders’ equity | 18,296 | 161,144 | 166,844 | 201,321 | (529,309 | ) | 18,296 | ||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 167,453 | $ | 166,844 | $ | 1,007,039 | $ | 345,428 | $ | (617,728 | ) | $ | 1,069,036 | ||||||||||||
TOPS HOLDING II CORPORATION | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS | |||||||||||||||||||||||||
FOR THE 16-WEEK PERIOD ENDED APRIL 19, 2014 | |||||||||||||||||||||||||
(Successor) | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Tops Holding | Tops Holding | Guarantor | |||||||||||||||||||||||
II Corporation | LLC | Tops Markets, LLC | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 585,334 | $ | 171,581 | $ | (376 | ) | $ | 756,539 | ||||||||||||
Cost of goods sold | — | — | (412,592 | ) | (114,043 | ) | — | (526,635 | ) | ||||||||||||||||
Distribution costs | — | — | (12,505 | ) | (3,721 | ) | — | (16,226 | ) | ||||||||||||||||
Gross profit | — | — | 160,237 | 53,817 | (376 | ) | 213,678 | ||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||
Wages, salaries and benefits | — | — | (79,906 | ) | (27,052 | ) | — | (106,958 | ) | ||||||||||||||||
Selling and general expenses | — | — | (31,411 | ) | (10,369 | ) | 376 | (41,404 | ) | ||||||||||||||||
Administrative expenses | — | — | (15,970 | ) | (5,054 | ) | — | (21,024 | ) | ||||||||||||||||
Rent expense, net | — | — | (5,368 | ) | (2,850 | ) | — | (8,218 | ) | ||||||||||||||||
Depreciation and amortization | — | — | (17,156 | ) | (3,670 | ) | — | (20,826 | ) | ||||||||||||||||
Advertising | — | — | (4,885 | ) | (1,454 | ) | — | (6,339 | ) | ||||||||||||||||
Total operating expenses | — | — | (154,696 | ) | (50,449 | ) | 376 | (204,769 | ) | ||||||||||||||||
Operating income | — | — | 5,541 | 3,368 | — | 8,909 | |||||||||||||||||||
Interest expense, net | (4,441 | ) | — | (20,579 | ) | (57 | ) | — | (25,077 | ) | |||||||||||||||
Equity (loss) income from subsidiaries | (9,230 | ) | (9,230 | ) | 2,000 | — | 16,460 | — | |||||||||||||||||
(Loss) income before income taxes | (13,671 | ) | (9,230 | ) | (13,038 | ) | 3,311 | 16,460 | (16,168 | ) | |||||||||||||||
Income tax benefit (expense) | — | — | 3,808 | (1,311 | ) | — | 2,497 | ||||||||||||||||||
Net (loss) income | (13,671 | ) | (9,230 | ) | (9,230 | ) | 2,000 | 16,460 | (13,671 | ) | |||||||||||||||
Other comprehensive income | — | — | — | — | — | — | |||||||||||||||||||
Comprehensive (loss) income | $ | (13,671 | ) | $ | (9,230 | ) | $ | (9,230 | ) | $ | 2,000 | $ | 16,460 | $ | (13,671 | ) | |||||||||
TOPS HOLDING II CORPORATION | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS | |||||||||||||||||||||||||
FOR THE 16-WEEK PERIOD ENDED APRIL 20, 2013 | |||||||||||||||||||||||||
(Predecessor) | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Tops Holding | Tops Holding | Guarantor | |||||||||||||||||||||||
II Corporation | LLC | Tops Markets, LLC | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 567,801 | $ | 168,371 | $ | (363 | ) | $ | 735,809 | ||||||||||||
Cost of goods sold | — | — | (401,382 | ) | (111,769 | ) | — | (513,151 | ) | ||||||||||||||||
Distribution costs | — | — | (10,803 | ) | (3,714 | ) | — | (14,517 | ) | ||||||||||||||||
Gross profit | — | — | 155,616 | 52,888 | (363 | ) | 208,141 | ||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||
Wages, salaries and benefits | — | — | (77,363 | ) | (26,682 | ) | — | (104,045 | ) | ||||||||||||||||
Selling and general expenses | — | — | (27,680 | ) | (8,991 | ) | 363 | (36,308 | ) | ||||||||||||||||
Administrative expenses | (258 | ) | (293 | ) | (16,183 | ) | (5,520 | ) | — | (22,254 | ) | ||||||||||||||
Rent expense, net | — | — | (4,795 | ) | (2,770 | ) | — | (7,565 | ) | ||||||||||||||||
Depreciation and amortization | — | — | (13,157 | ) | (3,847 | ) | — | (17,004 | ) | ||||||||||||||||
Advertising | — | — | (4,449 | ) | (1,318 | ) | — | (5,767 | ) | ||||||||||||||||
Total operating expenses | (258 | ) | (293 | ) | (143,627 | ) | (49,128 | ) | 363 | (192,943 | ) | ||||||||||||||
Operating income | (258 | ) | (293 | ) | 11,989 | 3,760 | — | 15,198 | |||||||||||||||||
Interest expense, net | — | — | (18,923 | ) | (49 | ) | — | (18,972 | ) | ||||||||||||||||
Equity (loss) income from subsidiaries | (3,943 | ) | (3,650 | ) | 2,242 | — | 5,351 | — | |||||||||||||||||
(Loss) income before income taxes | (4,201 | ) | (3,943 | ) | (4,692 | ) | 3,711 | 5,351 | (3,774 | ) | |||||||||||||||
Income tax benefit (expense) | — | — | 1,042 | (1,469 | ) | — | (427 | ) | |||||||||||||||||
Net (loss) income | (4,201 | ) | (3,943 | ) | (3,650 | ) | 2,242 | 5,351 | (4,201 | ) | |||||||||||||||
Other comprehensive income | — | — | — | — | — | — | |||||||||||||||||||
Comprehensive (loss) income | $ | (4,201 | ) | $ | (3,943 | ) | $ | (3,650 | ) | $ | 2,242 | $ | 5,351 | $ | (4,201 | ) | |||||||||
TOPS HOLDING II CORPORATION | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||
FOR THE 16-WEEK PERIOD ENDED APRIL 19, 2014 | |||||||||||||||||||||||||
(Successor) | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Tops Holding | Tops Holding | Guarantor | |||||||||||||||||||||||
II Corporation | LLC | Tops Markets, LLC | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | — | $ | — | $ | 23,008 | $ | (15,131 | ) | $ | — | $ | 7,877 | ||||||||||||
Cash flows (used in) provided by investing activities: | |||||||||||||||||||||||||
Cash paid for property and equipment | — | — | (11,662 | ) | (638 | ) | — | (12,300 | ) | ||||||||||||||||
Change in intercompany receivables position | — | — | — | 6,749 | (6,749 | ) | — | ||||||||||||||||||
Net cash (used in) provided by investing activities | — | — | (11,662 | ) | 6,111 | (6,749 | ) | (12,300 | ) | ||||||||||||||||
Cash flows provided by (used in) financing activities: | |||||||||||||||||||||||||
Dividend | (2,382 | ) | (2,382 | ) | (2,382 | ) | — | 4,764 | (2,382 | ) | |||||||||||||||
Capital contribution | 2,382 | 2,382 | — | — | (4,764 | ) | — | ||||||||||||||||||
Borrowings on 2017 ABL Facility | — | — | 179,700 | — | — | 179,700 | |||||||||||||||||||
Repayments on 2017 ABL Facility | — | — | (182,400 | ) | — | — | (182,400 | ) | |||||||||||||||||
Proceeds from sale leaseback financing transactions | — | — | 3,616 | 9,134 | — | 12,750 | |||||||||||||||||||
Repayments of long-term debt borrowings | — | — | (2,613 | ) | (8 | ) | — | (2,621 | ) | ||||||||||||||||
Principal payments on capital leases | — | — | (2,520 | ) | (143 | ) | — | (2,663 | ) | ||||||||||||||||
Deferred financing costs paid | — | — | (211 | ) | — | — | (211 | ) | |||||||||||||||||
Change in bank overdraft position | — | — | (65 | ) | — | — | (65 | ) | |||||||||||||||||
Change in intercompany payables position | — | — | (6,749 | ) | — | 6,749 | — | ||||||||||||||||||
Net cash provided by (used in) financing activities | — | — | (13,624 | ) | 8,983 | 6,749 | 2,108 | ||||||||||||||||||
Net decrease in cash and cash equivalents | — | — | (2,278 | ) | (37 | ) | — | (2,315 | ) | ||||||||||||||||
Cash and cash equivalents – beginning of period | — | — | 29,051 | 862 | — | 29,913 | |||||||||||||||||||
Cash and cash equivalents – end of period | $ | — | $ | — | $ | 26,773 | $ | 825 | $ | — | $ | 27,598 | |||||||||||||
TOPS HOLDING II CORPORATION | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||
FOR THE 16-WEEK PERIOD ENDED APRIL 20, 2013 | |||||||||||||||||||||||||
(Predecessor) | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Tops Holding | Tops Holding | Guarantor | |||||||||||||||||||||||
II Corporation | LLC | Tops Markets, LLC | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | — | $ | (292 | ) | $ | 16,257 | $ | 2,198 | $ | — | $ | 18,163 | ||||||||||||
Cash flows used in investing activities: | |||||||||||||||||||||||||
Cash paid for property and equipment | — | — | (11,567 | ) | (734 | ) | — | (12,301 | ) | ||||||||||||||||
Change in intercompany receivables position | — | — | (292 | ) | (1,288 | ) | 1,580 | — | |||||||||||||||||
Net cash used in investing activities | — | — | (11,859 | ) | (2,022 | ) | 1,580 | (12,301 | ) | ||||||||||||||||
Cash flows provided by (used in) financing activities: | |||||||||||||||||||||||||
Change in intercompany payables position | — | 292 | 1,288 | — | (1,580 | ) | — | ||||||||||||||||||
Borrowings on 2017 ABL Facility | — | — | 29,900 | — | — | 29,900 | |||||||||||||||||||
Repayments on 2017 ABL Facility | — | — | (29,900 | ) | — | — | (29,900 | ) | |||||||||||||||||
Principal payments on capital leases | — | — | (4,406 | ) | (118 | ) | — | (4,524 | ) | ||||||||||||||||
Deferred financing costs paid | — | — | (1,074 | ) | — | — | (1,074 | ) | |||||||||||||||||
Change in bank overdraft position | — | — | (107 | ) | — | — | (107 | ) | |||||||||||||||||
Repayments of long-term debt borrowings | — | — | (95 | ) | — | — | (95 | ) | |||||||||||||||||
Net cash provided by (used in) financing activities | — | 292 | (4,394 | ) | (118 | ) | (1,580 | ) | (5,800 | ) | |||||||||||||||
Net increase in cash and cash equivalents | — | — | 4 | 58 | — | 62 | |||||||||||||||||||
Cash and cash equivalents – beginning of period | — | — | 31,586 | 836 | — | 32,422 | |||||||||||||||||||
Cash and cash equivalents – end of period | $ | — | $ | — | $ | 31,590 | $ | 894 | $ | — | $ | 32,484 | |||||||||||||
THE_COMPANY_BASIS_OF_PRESENTAT1
THE COMPANY, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 4 Months Ended | ||||||||||||||||
Apr. 19, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
The Company | ' | ||||||||||||||||
The Company | |||||||||||||||||
Tops Holding II Corporation (“Holding II” or “Company”), the parent of Tops Holding LLC (“Holding I”), formerly Tops Holding Corporation, was incorporated on May 7, 2013. Holding I is the parent of Tops Markets, LLC (“Tops Markets”), a supermarket retailer in Upstate New York, Northern Pennsylvania and Vermont. Holding I was incorporated on October 5, 2007 and commenced operations on December 1, 2007. As of April 19, 2014, the Company operated 155 supermarkets under the banners of Tops and Orchard Fresh, with an additional five supermarkets operated by franchisees. Holding I has no business operations other than the ownership of Tops Markets and as a co-issuer of the Holding I Notes (see Note 6). | |||||||||||||||||
On November 14, 2013, each of the sellers named therein (including Morgan Stanley Global Private Equity (“MSPE”)) (the “Sellers”), Tops MBO Corporation (“Tops MBO Co”) and Holding II signed a Purchase and Sale Agreement (the “Purchase and Sale Agreement”) pursuant to which Tops MBO Co agreed to purchase substantially all of the outstanding common stock of Holding II (the transactions contemplated by the Purchase and Sale Agreement, the “Management Purchase”). Tops MBO Co is owned and controlled by certain current members of management who formed Tops MBO Co to purchase such common stock from the Sellers. The Management Purchase closed effective December 1, 2013. The consummation of the Management Purchase was the result of arms’ length negotiations between the current members of management of Holding II and the former outside equity owners of Tops Holding II Corporation. Prior to the Management Purchase, members of management owned approximately 7% of the outstanding equity interests in Holding II, with certain private equity funds and other individuals owning the remaining equity interests. As a result of the Management Purchase, through their ownership of Tops MBO Co and through direct ownership of six shares of Holding II, those members of management now beneficially own all of the outstanding equity interests of Holding II. | |||||||||||||||||
The acquisition was accounted for as a purchase and “push down accounting” was required to be applied, with the result that purchase accounting adjustments were reflected in the Company’s financial statements. The application of push down purchase accounting resulted in a new basis of accounting in which the total cost of the purchase of Holding II was allocated to the assets acquired and liabilities assumed using estimates of fair values based on a preliminary allocation of the Tops MBO Co purchase price. Accordingly, these condensed consolidated financial statements refer to the Company in the period prior to the acquisition as the “Predecessor” and in the period subsequent to the acquisition as the “Successor.” For more information, see Note 2. | |||||||||||||||||
Holding II is the reporting entity for the Holding I Notes and Holding II Notes (see Note 6). Tops MBO Co is neither a co-issuer nor guarantor of these notes. Accordingly, the condensed consolidated financial statements have been prepared for Holding II and exclude the net assets and results of operations of Tops MBO Co. Tops MBO Co’s net assets consist solely of its investment in Holding II, a $12.3 million term loan (“MBO Co Loan”) entered into to partially fund the Management Purchase, and related deferred financing costs. Tops MBO Co has no operations other than as the borrower under the MBO Co Loan and its ownership of Holding II. | |||||||||||||||||
Change in Reporting Entity | ' | ||||||||||||||||
Change in Reporting Entity | |||||||||||||||||
Effective May 15, 2013, Holding I was converted to a limited liability company and Tops Markets II Corporation, a wholly-owned subsidiary of Holding I, was formed on May 14, 2013 and added as a co-issuer of the Holding I Notes (see Note 6). On May 15, 2013, the stockholders of Holding I contributed all of the outstanding shares of common stock of Holding I to Holding II in exchange for shares of common stock of Holding II. Holding II has no business operations other than the ownership of Holding I and as the issuer of the Holding II Notes (see Note 6). | |||||||||||||||||
On August 20, 2013, Holding II was added as a guarantor of the Holding I Notes, resulting in Holding II becoming the reporting entity related to these notes. The historical results of Holding I and its subsidiaries have been consolidated with Holding II as if Holding II were in existence for all periods presented to reflect the change in reporting entity. | |||||||||||||||||
Accounting Policies | ' | ||||||||||||||||
Accounting Policies | |||||||||||||||||
A summary of the Company’s significant accounting policies is included in Note 1 to the audited consolidated financial statements of Holding II in its 2013 Special Report on Form 10-K | |||||||||||||||||
Basis of Presentation and Principles of Consolidation | ' | ||||||||||||||||
Basis of Presentation and Principles of Consolidation | |||||||||||||||||
The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The condensed consolidated financial statements include the accounts of the Company and all of its subsidiaries. All intercompany transactions have been eliminated. | |||||||||||||||||
The Company operates on a 52/53 week fiscal year ending on the Saturday closest to December 31. Fiscal years include 13 four-week reporting periods, with an additional week in the thirteenth reporting period for 53-week fiscal years. The first quarter of each fiscal year includes four reporting periods, while the remaining quarters include three reporting periods. | |||||||||||||||||
The Company’s condensed consolidated financial statements for the 16-week periods ended April 19, 2014 and April 20, 2013 are unaudited, and, in the opinion of management, contain all adjustments that are of a normal and recurring nature necessary for a fair statement of financial position and results of operations for such periods. | |||||||||||||||||
Segments | ' | ||||||||||||||||
Segments | |||||||||||||||||
The Company’s supermarkets offer grocery, produce, frozen, dairy, meat, floral, seafood, health and beauty care, general merchandise, deli and bakery goods. The Company operates one supermarket format where each supermarket offers the same general mix of products with similar pricing to similar categories of customers. As of April 19, 2014, 79 supermarkets offered pharmacy services and 52 fuel centers were in operation, inclusive of the Company’s franchise locations. The Company’s retail operations, which represent substantially all of the Company’s consolidated sales, earnings and total assets, are its only operating segment and reportable segment. The Company’s retail operations as a whole reflect the level at which the business is managed and how the Company’s Chief Executive Officer, who acts as the Company’s chief operating decision maker, assesses performance internally. | |||||||||||||||||
The following table presents sales revenue by type of similar product (dollars in thousands): | |||||||||||||||||
16-week periods ended | |||||||||||||||||
April 19, 2014 | April 20, 2013 | ||||||||||||||||
(Successor) | (Predecessor) | ||||||||||||||||
% of | % of | ||||||||||||||||
Amount | Total | Amount | Total | ||||||||||||||
Non-perishables(1) | $ | 424,428 | 56.1 | % | $ | 419,053 | 57 | % | |||||||||
Perishables(2) | 207,151 | 27.4 | % | 196,400 | 26.7 | % | |||||||||||
Fuel | 68,083 | 9 | % | 66,618 | 9.1 | % | |||||||||||
Pharmacy | 50,109 | 6.6 | % | 48,264 | 6.6 | % | |||||||||||
Other(3) | 6,768 | 0.9 | % | 5,474 | 0.6 | % | |||||||||||
$ | 756,539 | 100 | % | $ | 735,809 | 100 | % | ||||||||||
-1 | Non-perishables consist of grocery, dairy, frozen, general merchandise, health and beauty care and other non-perishable related products. | ||||||||||||||||
-2 | Perishables consist of produce, meat, seafood, bakery, deli, floral, prepared foods and other perishable related products. | ||||||||||||||||
-3 | Other primarily consists of franchise income and service commission income, such as lottery, money orders and money transfers. | ||||||||||||||||
Use of Estimates | ' | ||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s condensed consolidated financial statements and notes thereto. The most significant estimates used by management are related to the accounting for vendor allowances, valuation of long-lived assets including goodwill and intangible assets, acquisition accounting, lease classification, self-insurance reserves, inventory valuation and income taxes. Actual results could differ from these estimates. | |||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
The provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, “Fair Value Measurements and Disclosures” establish a framework for measuring fair value and a hierarchy that categorizes and prioritizes the sources to be used to estimate fair value as follows: | |||||||||||||||||
Level 1 – observable inputs such as quoted prices in active markets; | |||||||||||||||||
Level 2 – inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs); and | |||||||||||||||||
Level 3 – unobservable inputs that reflect the Company’s determination of assumptions that market participants would use in pricing the asset or liability. These inputs are developed based on the best information available, including the Company’s own data. | |||||||||||||||||
Financial instruments include cash and cash equivalents, accounts receivable, accounts payable and long-term debt. The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the short-term nature of these financial instruments. At April 19, 2014 and December 28, 2013, the carrying value and the estimated fair value of the Company’s debt instruments were as follows (dollars in thousands): | |||||||||||||||||
April 19, 2014 | December 28, 2013 | ||||||||||||||||
Carrying value of long-term debt: | |||||||||||||||||
Current portion of long-term debt | $ | 501 | $ | 2,309 | |||||||||||||
Long-term debt | 662,693 | 664,186 | |||||||||||||||
Total carrying value of long-term debt | 663,194 | 666,495 | |||||||||||||||
Fair value of long-term debt | 714,528 | 719,861 | |||||||||||||||
Excess of fair value over carrying value | $ | 51,334 | $ | 53,366 | |||||||||||||
The fair value of the Company’s senior notes, which are included in long-term debt, was based on quoted market prices, a Level 1 source. The fair value of the Company’s other long-term debt was based on the net present value of future cash flows using estimated applicable market interest rates for the Company at April 19, 2014 and December 28, 2013, a Level 3 measurement technique. | |||||||||||||||||
Fair value measurements of non-financial assets and non-financial liabilities are primarily used in the impairment analysis of long-lived assets, goodwill and intangible assets. Long-lived assets and definite-lived intangible assets are measured at fair value on a nonrecurring basis using Level 3 inputs. Goodwill and the Tops tradename are reviewed annually for impairment on December 1, or more frequently, if impairment indicators arise. |
THE_COMPANY_BASIS_OF_PRESENTAT2
THE COMPANY, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 4 Months Ended | ||||||||||||||||
Apr. 19, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Sales Revenue by Type of Similar Product | ' | ||||||||||||||||
The following table presents sales revenue by type of similar product (dollars in thousands): | |||||||||||||||||
16-week periods ended | |||||||||||||||||
April 19, 2014 | April 20, 2013 | ||||||||||||||||
(Successor) | (Predecessor) | ||||||||||||||||
% of | % of | ||||||||||||||||
Amount | Total | Amount | Total | ||||||||||||||
Non-perishables(1) | $ | 424,428 | 56.1 | % | $ | 419,053 | 57 | % | |||||||||
Perishables(2) | 207,151 | 27.4 | % | 196,400 | 26.7 | % | |||||||||||
Fuel | 68,083 | 9 | % | 66,618 | 9.1 | % | |||||||||||
Pharmacy | 50,109 | 6.6 | % | 48,264 | 6.6 | % | |||||||||||
Other(3) | 6,768 | 0.9 | % | 5,474 | 0.6 | % | |||||||||||
$ | 756,539 | 100 | % | $ | 735,809 | 100 | % | ||||||||||
-1 | Non-perishables consist of grocery, dairy, frozen, general merchandise, health and beauty care and other non-perishable related products. | ||||||||||||||||
-2 | Perishables consist of produce, meat, seafood, bakery, deli, floral, prepared foods and other perishable related products. | ||||||||||||||||
-3 | Other primarily consists of franchise income and service commission income, such as lottery, money orders and money transfers. | ||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
At April 19, 2014 and December 28, 2013, the carrying value and the estimated fair value of the Company’s debt instruments were as follows (dollars in thousands): | |||||||||||||||||
April 19, 2014 | December 28, 2013 | ||||||||||||||||
Carrying value of long-term debt: | |||||||||||||||||
Current portion of long-term debt | $ | 501 | $ | 2,309 | |||||||||||||
Long-term debt | 662,693 | 664,186 | |||||||||||||||
Total carrying value of long-term debt | 663,194 | 666,495 | |||||||||||||||
Fair value of long-term debt | 714,528 | 719,861 | |||||||||||||||
Excess of fair value over carrying value | $ | 51,334 | $ | 53,366 | |||||||||||||
BUSINESS_ACQUISITION_Tables
BUSINESS ACQUISITION (Tables) (Management Purchase [Member]) | 4 Months Ended | ||||
Apr. 19, 2014 | |||||
Management Purchase [Member] | ' | ||||
Allocation of Purchase Price to Assets Acquired and Liabilities Assumed | ' | ||||
The following table summarizes the preliminary allocation of the purchase price to the assets acquired and liabilities assumed as of the transaction date (dollars in thousands): | |||||
Assets acquired: | |||||
Cash | $ | 25,149 | |||
Accounts receivable | 66,244 | ||||
Inventory | 149,911 | ||||
Prepaid expenses | 14,905 | ||||
Income taxes refundable | 116 | ||||
Deferred tax assets | 1,122 | ||||
Property and equipment | 385,811 | ||||
Goodwill | 217,406 | ||||
Intangible assets | 194,300 | ||||
Other assets | 19,456 | ||||
Total assets acquired | 1,074,420 | ||||
Liabilities assumed: | |||||
Accounts payable | 81,588 | ||||
Accrued expenses and other current liabilities | 113,544 | ||||
Other long-term liabilities | 31,196 | ||||
Capital lease obligations | 124,149 | ||||
Long-term debt | 654,177 | ||||
Deferred tax liabilities | 48,906 | ||||
Total liabilities assumed | 1,053,560 | ||||
Acquisition price | $ | 20,860 | |||
Unaudited Pro forma Financial Information | ' | ||||
The following table summarizes the Company’s unaudited pro forma operating results for the 16-week period ended April 20, 2013, giving effect to the Management Purchase as if it occurred on December 30, 2012 (dollars in thousands): | |||||
Net sales | $ | 735,809 | |||
Operating loss | (5,685 | ) | |||
Net loss | (25,084 | ) |
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS, NET (Tables) | 4 Months Ended | ||||||||||||||||
Apr. 19, 2014 | |||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||
Summary of Changes in Goodwill | ' | ||||||||||||||||
The following table summarizes the change in the Company’s goodwill balance during the 16-week period ended April 19, 2014 (dollars in thousands): | |||||||||||||||||
Balance – December 28, 2013 | $ | 217,406 | |||||||||||||||
Balance – April 19, 2014 | $ | 217,406 | |||||||||||||||
Summary of Intangible Assets, Net of Accumulated Amortization | ' | ||||||||||||||||
Intangible assets, net of accumulated amortization, consist of the following (dollars in thousands): | |||||||||||||||||
Weighted | |||||||||||||||||
Gross | Net | Average | |||||||||||||||
Carrying | Accumulated | Carrying | Amortization | ||||||||||||||
April 19, 2014 | Amount | Amortization | Amount | Period | |||||||||||||
Tradename – indefinite | $ | 131,000 | $ | — | $ | 131,000 | Indefinite life | ||||||||||
Customer relationships | 28,400 | (2,761 | ) | 25,639 | 14 | ||||||||||||
Favorable lease rights | 21,600 | (1,168 | ) | 20,432 | 9 | ||||||||||||
Franchise agreements | 13,300 | (761 | ) | 12,539 | 14 | ||||||||||||
$ | 194,300 | $ | (4,690 | ) | $ | 189,610 | 12.3 | ||||||||||
Gross | Net | ||||||||||||||||
Carrying | Accumulated | Carrying | |||||||||||||||
December 28, 2013 | Amount | Amortization | Amount | ||||||||||||||
Tradename – indefinite | $ | 131,000 | $ | — | $ | 131,000 | |||||||||||
Customer relationships | 28,400 | (568 | ) | 27,832 | |||||||||||||
Favorable lease rights | 21,600 | (233 | ) | 21,367 | |||||||||||||
Franchise agreements | 13,300 | (160 | ) | 13,140 | |||||||||||||
$ | 194,300 | $ | (961 | ) | $ | 193,339 | |||||||||||
Summary of Expected Future Amortization of Intangible Assets | ' | ||||||||||||||||
As of April 19, 2014, expected future amortization of intangible assets is as follows (dollars in thousands): | |||||||||||||||||
2014 (remaining period) | $ | 8,390 | |||||||||||||||
2015 | 10,729 | ||||||||||||||||
2016 | 7,724 | ||||||||||||||||
2017 | 6,557 | ||||||||||||||||
2018 | 5,633 | ||||||||||||||||
Thereafter | 19,577 |
ACCRUED_EXPENSES_AND_OTHER_CUR1
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 4 Months Ended | ||||||||
Apr. 19, 2014 | |||||||||
Text Block [Abstract] | ' | ||||||||
Summary of Accrued Expenses and Other Current Liabilities | ' | ||||||||
Accrued expenses and other current liabilities consist of the following (dollars in thousands): | |||||||||
April 19, 2014 | December 28, 2013 | ||||||||
Interest payable | $ | 18,844 | $ | 2,272 | |||||
Wages, taxes and benefits | 16,992 | 18,391 | |||||||
Lottery | 12,122 | 10,519 | |||||||
Property and equipment expenditures | 8,755 | 4,285 | |||||||
Self-insurance reserves | 6,033 | 6,033 | |||||||
Union medical, pension and 401(k) | 4,104 | 4,589 | |||||||
Professional and legal fees | 3,638 | 18,854 | |||||||
Sales and use tax | 3,553 | 6,279 | |||||||
Gift cards | 3,333 | 7,312 | |||||||
Utilities | 2,821 | 2,714 | |||||||
Repairs and maintenance | 1,741 | 2,539 | |||||||
Money orders | 1,448 | 1,456 | |||||||
Other | 10,938 | 12,988 | |||||||
$ | 94,322 | $ | 98,231 | ||||||
CAPITAL_LEASE_OBLIGATIONS_Tabl
CAPITAL LEASE OBLIGATIONS (Tables) | 4 Months Ended | ||||
Apr. 19, 2014 | |||||
Leases [Abstract] | ' | ||||
Schedule of Future Minimum Lease Rental Payments for Capital Lease Obligations | ' | ||||
As of April 19, 2014, future minimum lease rental payments applicable to non-cancelable capital lease obligations were as follows (dollars in thousands): | |||||
2014 (remaining period) | $ | 20,591 | |||
2015 | 27,308 | ||||
2016 | 25,988 | ||||
2017 | 22,833 | ||||
2018 | 19,625 | ||||
Thereafter | 80,626 | ||||
Total minimum lease payments | 196,971 | ||||
Less amounts representing interest | (127,975 | ) | |||
Present value of net minimum lease payments | 68,996 | ||||
Less current obligations | (8,583 | ) | |||
Long-term cash obligations | 60,413 | ||||
Non-cash obligations | 68,552 | ||||
Total long-term capital lease obligations | $ | 128,965 | |||
DEBT_Tables
DEBT (Tables) | 4 Months Ended | ||||||||
Apr. 19, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Summary of Long-term Debt | ' | ||||||||
Long-term debt is comprised of the following (dollars in thousands): | |||||||||
April 19, 2014 | December 28, 2013 | ||||||||
Holding I Notes | $ | 460,000 | $ | 460,000 | |||||
Holding II Notes | 150,000 | 150,000 | |||||||
Discount on Holding II Notes | (1,277 | ) | (1,353 | ) | |||||
2017 ABL Facility | 52,100 | 54,800 | |||||||
Other loans | 2,371 | 2,604 | |||||||
Mortgage note payable | — | 444 | |||||||
Total debt | 663,194 | 666,495 | |||||||
Current portion | (501 | ) | (2,309 | ) | |||||
Total long-term debt | $ | 662,693 | $ | 664,186 | |||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 4 Months Ended | ||||||||
Apr. 19, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Summary of Income Tax Benefit (Expense) | ' | ||||||||
Income tax benefit (expense) was as follows (dollars in thousands): | |||||||||
16-week periods ended | |||||||||
April 19, 2014 | April 20, 2013 | ||||||||
(Successor) | (Predecessor) | ||||||||
Current | $ | (17 | ) | $ | 1 | ||||
Deferred | 2,514 | (428 | ) | ||||||
Total income tax benefit (expense) | $ | 2,497 | $ | (427 | ) | ||||
GUARANTOR_FINANCIAL_STATEMENTS1
GUARANTOR FINANCIAL STATEMENTS (Tables) | 4 Months Ended | ||||||||||||||||||||||||
Apr. 19, 2014 | |||||||||||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||||||||||
Guarantor Financial Statements | ' | ||||||||||||||||||||||||
TOPS HOLDING II CORPORATION | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEET | |||||||||||||||||||||||||
APRIL 19, 2014 | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Tops Holding | Tops Holding | Guarantor | |||||||||||||||||||||||
II Corporation | LLC | Tops Markets, LLC | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 26,773 | $ | 825 | $ | — | $ | 27,598 | |||||||||||||
Accounts receivable, net | — | — | 50,844 | 11,328 | — | 62,172 | |||||||||||||||||||
Intercompany receivables | — | — | 83,780 | 4,162 | (87,942 | ) | — | ||||||||||||||||||
Inventory, net | — | — | 102,390 | 35,989 | — | 138,379 | |||||||||||||||||||
Prepaid expenses and other current assets | — | — | 13,219 | 3,278 | — | 16,497 | |||||||||||||||||||
Income taxes refundable | — | — | 58 | — | — | 58 | |||||||||||||||||||
Current deferred tax assets | — | — | 6,129 | — | — | 6,129 | |||||||||||||||||||
Total current assets | — | — | 283,193 | 55,582 | (87,942 | ) | 250,833 | ||||||||||||||||||
Property and equipment, net | — | — | 333,850 | 52,607 | — | 386,457 | |||||||||||||||||||
Goodwill | — | — | 20,710 | 196,696 | — | 217,406 | |||||||||||||||||||
Intangible assets, net | — | — | 139,657 | 49,953 | — | 189,610 | |||||||||||||||||||
Other assets | 5,954 | — | 13,481 | 3,041 | (4,674 | ) | 17,802 | ||||||||||||||||||
Investment in subsidiaries | 149,543 | 155,243 | 203,321 | — | (508,107 | ) | — | ||||||||||||||||||
Total assets | $ | 155,497 | $ | 155,243 | $ | 994,212 | $ | 357,879 | $ | (600,723 | ) | $ | 1,062,108 | ||||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Accounts payable | $ | — | $ | — | $ | 63,923 | $ | 17,540 | $ | — | $ | 81,463 | |||||||||||||
Intercompany payables | — | 5,700 | 4,162 | 78,080 | (87,942 | ) | — | ||||||||||||||||||
Accrued expenses and other current liabilities | 4,521 | — | 71,613 | 18,188 | — | 94,322 | |||||||||||||||||||
Current portion of capital lease obligations | — | — | 8,296 | 287 | — | 8,583 | |||||||||||||||||||
Current portion of long-term debt | — | — | 470 | 31 | — | 501 | |||||||||||||||||||
Total current liabilities | 4,521 | 5,700 | 148,464 | 114,126 | (87,942 | ) | 184,869 | ||||||||||||||||||
Capital lease obligations | — | — | 117,324 | 11,641 | — | 128,965 | |||||||||||||||||||
Long-term debt | 148,723 | — | 516,446 | 565 | (3,041 | ) | 662,693 | ||||||||||||||||||
Other long-term liabilities | — | — | 28,161 | 5,437 | — | 33,598 | |||||||||||||||||||
Non-current deferred tax liabilities | — | — | 28,574 | 22,789 | (1,633 | ) | 49,730 | ||||||||||||||||||
Total liabilities | 153,244 | 5,700 | 838,969 | 154,558 | (92,616 | ) | 1,059,855 | ||||||||||||||||||
Total shareholders’ equity | 2,253 | 149,543 | 155,243 | 203,321 | (508,107 | ) | 2,253 | ||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 155,497 | $ | 155,243 | $ | 994,212 | $ | 357,879 | $ | (600,723 | ) | $ | 1,062,108 | ||||||||||||
TOPS HOLDING II CORPORATION | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEET | |||||||||||||||||||||||||
DECEMBER 28, 2013 | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Tops Holding | Tops Holding | Guarantor | |||||||||||||||||||||||
II Corporation | LLC | Tops Markets, LLC | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 29,051 | $ | 862 | $ | — | $ | 29,913 | |||||||||||||
Accounts receivable, net | — | — | 52,453 | 12,068 | — | 64,521 | |||||||||||||||||||
Intercompany receivables | — | — | 78,963 | 6,093 | (85,056 | ) | — | ||||||||||||||||||
Inventory, net | — | — | 106,487 | 35,809 | — | 142,296 | |||||||||||||||||||
Prepaid expenses and other current assets | — | — | 7,817 | 2,938 | — | 10,755 | |||||||||||||||||||
Income taxes refundable | — | — | 110 | — | — | 110 | |||||||||||||||||||
Current deferred tax assets | — | — | 6,129 | — | — | 6,129 | |||||||||||||||||||
Total current assets | — | — | 281,010 | 57,770 | (85,056 | ) | 253,724 | ||||||||||||||||||
Property and equipment, net | — | — | 317,547 | 68,034 | — | 385,581 | |||||||||||||||||||
Goodwill | — | — | 51,207 | 166,199 | — | 217,406 | |||||||||||||||||||
Intangible assets, net | — | — | 142,955 | 50,384 | — | 193,339 | |||||||||||||||||||
Other assets | 6,309 | — | 12,999 | 3,041 | (3,363 | ) | 18,986 | ||||||||||||||||||
Investment in subsidiaries | 161,144 | 166,844 | 201,321 | — | (529,309 | ) | — | ||||||||||||||||||
Total assets | $ | 167,453 | $ | 166,844 | $ | 1,007,039 | $ | 345,428 | $ | (617,728 | ) | $ | 1,069,036 | ||||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Accounts payable | $ | — | $ | — | $ | 62,971 | $ | 16,729 | $ | — | $ | 79,700 | |||||||||||||
Intercompany payables | — | 5,700 | 6,093 | 73,263 | (85,056 | ) | — | ||||||||||||||||||
Accrued expenses and other current liabilities | 510 | — | 73,363 | 24,358 | — | 98,231 | |||||||||||||||||||
Current portion of capital lease obligations | — | — | 7,918 | 396 | — | 8,314 | |||||||||||||||||||
Current portion of long-term debt | — | — | 2,279 | 30 | — | 2,309 | |||||||||||||||||||
Total current liabilities | 510 | 5,700 | 152,624 | 114,776 | (85,056 | ) | 188,554 | ||||||||||||||||||
Capital lease obligations | — | — | 111,745 | 2,541 | — | 114,286 | |||||||||||||||||||
Long-term debt | 148,647 | — | 518,007 | 573 | (3,041 | ) | 664,186 | ||||||||||||||||||
Other long-term liabilities | — | — | 26,730 | 4,740 | — | 31,470 | |||||||||||||||||||
Non-current deferred tax liabilities | — | — | 31,089 | 21,477 | (322 | ) | 52,244 | ||||||||||||||||||
Total liabilities | 149,157 | 5,700 | 840,195 | 144,107 | (88,419 | ) | 1,050,740 | ||||||||||||||||||
Total shareholders’ equity | 18,296 | 161,144 | 166,844 | 201,321 | (529,309 | ) | 18,296 | ||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 167,453 | $ | 166,844 | $ | 1,007,039 | $ | 345,428 | $ | (617,728 | ) | $ | 1,069,036 | ||||||||||||
TOPS HOLDING II CORPORATION | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS | |||||||||||||||||||||||||
FOR THE 16-WEEK PERIOD ENDED APRIL 19, 2014 | |||||||||||||||||||||||||
(Successor) | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Tops Holding | Tops Holding | Guarantor | |||||||||||||||||||||||
II Corporation | LLC | Tops Markets, LLC | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 585,334 | $ | 171,581 | $ | (376 | ) | $ | 756,539 | ||||||||||||
Cost of goods sold | — | — | (412,592 | ) | (114,043 | ) | — | (526,635 | ) | ||||||||||||||||
Distribution costs | — | — | (12,505 | ) | (3,721 | ) | — | (16,226 | ) | ||||||||||||||||
Gross profit | — | — | 160,237 | 53,817 | (376 | ) | 213,678 | ||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||
Wages, salaries and benefits | — | — | (79,906 | ) | (27,052 | ) | — | (106,958 | ) | ||||||||||||||||
Selling and general expenses | — | — | (31,411 | ) | (10,369 | ) | 376 | (41,404 | ) | ||||||||||||||||
Administrative expenses | — | — | (15,970 | ) | (5,054 | ) | — | (21,024 | ) | ||||||||||||||||
Rent expense, net | — | — | (5,368 | ) | (2,850 | ) | — | (8,218 | ) | ||||||||||||||||
Depreciation and amortization | — | — | (17,156 | ) | (3,670 | ) | — | (20,826 | ) | ||||||||||||||||
Advertising | — | — | (4,885 | ) | (1,454 | ) | — | (6,339 | ) | ||||||||||||||||
Total operating expenses | — | — | (154,696 | ) | (50,449 | ) | 376 | (204,769 | ) | ||||||||||||||||
Operating income | — | — | 5,541 | 3,368 | — | 8,909 | |||||||||||||||||||
Interest expense, net | (4,441 | ) | — | (20,579 | ) | (57 | ) | — | (25,077 | ) | |||||||||||||||
Equity (loss) income from subsidiaries | (9,230 | ) | (9,230 | ) | 2,000 | — | 16,460 | — | |||||||||||||||||
(Loss) income before income taxes | (13,671 | ) | (9,230 | ) | (13,038 | ) | 3,311 | 16,460 | (16,168 | ) | |||||||||||||||
Income tax benefit (expense) | — | — | 3,808 | (1,311 | ) | — | 2,497 | ||||||||||||||||||
Net (loss) income | (13,671 | ) | (9,230 | ) | (9,230 | ) | 2,000 | 16,460 | (13,671 | ) | |||||||||||||||
Other comprehensive income | — | — | — | — | — | — | |||||||||||||||||||
Comprehensive (loss) income | $ | (13,671 | ) | $ | (9,230 | ) | $ | (9,230 | ) | $ | 2,000 | $ | 16,460 | $ | (13,671 | ) | |||||||||
TOPS HOLDING II CORPORATION | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS | |||||||||||||||||||||||||
FOR THE 16-WEEK PERIOD ENDED APRIL 20, 2013 | |||||||||||||||||||||||||
(Predecessor) | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Tops Holding | Tops Holding | Guarantor | |||||||||||||||||||||||
II Corporation | LLC | Tops Markets, LLC | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 567,801 | $ | 168,371 | $ | (363 | ) | $ | 735,809 | ||||||||||||
Cost of goods sold | — | — | (401,382 | ) | (111,769 | ) | — | (513,151 | ) | ||||||||||||||||
Distribution costs | — | — | (10,803 | ) | (3,714 | ) | — | (14,517 | ) | ||||||||||||||||
Gross profit | — | — | 155,616 | 52,888 | (363 | ) | 208,141 | ||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||
Wages, salaries and benefits | — | — | (77,363 | ) | (26,682 | ) | — | (104,045 | ) | ||||||||||||||||
Selling and general expenses | — | — | (27,680 | ) | (8,991 | ) | 363 | (36,308 | ) | ||||||||||||||||
Administrative expenses | (258 | ) | (293 | ) | (16,183 | ) | (5,520 | ) | — | (22,254 | ) | ||||||||||||||
Rent expense, net | — | — | (4,795 | ) | (2,770 | ) | — | (7,565 | ) | ||||||||||||||||
Depreciation and amortization | — | — | (13,157 | ) | (3,847 | ) | — | (17,004 | ) | ||||||||||||||||
Advertising | — | — | (4,449 | ) | (1,318 | ) | — | (5,767 | ) | ||||||||||||||||
Total operating expenses | (258 | ) | (293 | ) | (143,627 | ) | (49,128 | ) | 363 | (192,943 | ) | ||||||||||||||
Operating income | (258 | ) | (293 | ) | 11,989 | 3,760 | — | 15,198 | |||||||||||||||||
Interest expense, net | — | — | (18,923 | ) | (49 | ) | — | (18,972 | ) | ||||||||||||||||
Equity (loss) income from subsidiaries | (3,943 | ) | (3,650 | ) | 2,242 | — | 5,351 | — | |||||||||||||||||
(Loss) income before income taxes | (4,201 | ) | (3,943 | ) | (4,692 | ) | 3,711 | 5,351 | (3,774 | ) | |||||||||||||||
Income tax benefit (expense) | — | — | 1,042 | (1,469 | ) | — | (427 | ) | |||||||||||||||||
Net (loss) income | (4,201 | ) | (3,943 | ) | (3,650 | ) | 2,242 | 5,351 | (4,201 | ) | |||||||||||||||
Other comprehensive income | — | — | — | — | — | — | |||||||||||||||||||
Comprehensive (loss) income | $ | (4,201 | ) | $ | (3,943 | ) | $ | (3,650 | ) | $ | 2,242 | $ | 5,351 | $ | (4,201 | ) | |||||||||
TOPS HOLDING II CORPORATION | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||
FOR THE 16-WEEK PERIOD ENDED APRIL 19, 2014 | |||||||||||||||||||||||||
(Successor) | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Tops Holding | Tops Holding | Guarantor | |||||||||||||||||||||||
II Corporation | LLC | Tops Markets, LLC | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | — | $ | — | $ | 23,008 | $ | (15,131 | ) | $ | — | $ | 7,877 | ||||||||||||
Cash flows (used in) provided by investing activities: | |||||||||||||||||||||||||
Cash paid for property and equipment | — | — | (11,662 | ) | (638 | ) | — | (12,300 | ) | ||||||||||||||||
Change in intercompany receivables position | — | — | — | 6,749 | (6,749 | ) | — | ||||||||||||||||||
Net cash (used in) provided by investing activities | — | — | (11,662 | ) | 6,111 | (6,749 | ) | (12,300 | ) | ||||||||||||||||
Cash flows provided by (used in) financing activities: | |||||||||||||||||||||||||
Dividend | (2,382 | ) | (2,382 | ) | (2,382 | ) | — | 4,764 | (2,382 | ) | |||||||||||||||
Capital contribution | 2,382 | 2,382 | — | — | (4,764 | ) | — | ||||||||||||||||||
Borrowings on 2017 ABL Facility | — | — | 179,700 | — | — | 179,700 | |||||||||||||||||||
Repayments on 2017 ABL Facility | — | — | (182,400 | ) | — | — | (182,400 | ) | |||||||||||||||||
Proceeds from sale leaseback financing transactions | — | — | 3,616 | 9,134 | — | 12,750 | |||||||||||||||||||
Repayments of long-term debt borrowings | — | — | (2,613 | ) | (8 | ) | — | (2,621 | ) | ||||||||||||||||
Principal payments on capital leases | — | — | (2,520 | ) | (143 | ) | — | (2,663 | ) | ||||||||||||||||
Deferred financing costs paid | — | — | (211 | ) | — | — | (211 | ) | |||||||||||||||||
Change in bank overdraft position | — | — | (65 | ) | — | — | (65 | ) | |||||||||||||||||
Change in intercompany payables position | — | — | (6,749 | ) | — | 6,749 | — | ||||||||||||||||||
Net cash provided by (used in) financing activities | — | — | (13,624 | ) | 8,983 | 6,749 | 2,108 | ||||||||||||||||||
Net decrease in cash and cash equivalents | — | — | (2,278 | ) | (37 | ) | — | (2,315 | ) | ||||||||||||||||
Cash and cash equivalents – beginning of period | — | — | 29,051 | 862 | — | 29,913 | |||||||||||||||||||
Cash and cash equivalents – end of period | $ | — | $ | — | $ | 26,773 | $ | 825 | $ | — | $ | 27,598 | |||||||||||||
TOPS HOLDING II CORPORATION | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||
FOR THE 16-WEEK PERIOD ENDED APRIL 20, 2013 | |||||||||||||||||||||||||
(Predecessor) | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Tops Holding | Tops Holding | Guarantor | |||||||||||||||||||||||
II Corporation | LLC | Tops Markets, LLC | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | — | $ | (292 | ) | $ | 16,257 | $ | 2,198 | $ | — | $ | 18,163 | ||||||||||||
Cash flows used in investing activities: | |||||||||||||||||||||||||
Cash paid for property and equipment | — | — | (11,567 | ) | (734 | ) | — | (12,301 | ) | ||||||||||||||||
Change in intercompany receivables position | — | — | (292 | ) | (1,288 | ) | 1,580 | — | |||||||||||||||||
Net cash used in investing activities | — | — | (11,859 | ) | (2,022 | ) | 1,580 | (12,301 | ) | ||||||||||||||||
Cash flows provided by (used in) financing activities: | |||||||||||||||||||||||||
Change in intercompany payables position | — | 292 | 1,288 | — | (1,580 | ) | — | ||||||||||||||||||
Borrowings on 2017 ABL Facility | — | — | 29,900 | — | — | 29,900 | |||||||||||||||||||
Repayments on 2017 ABL Facility | — | — | (29,900 | ) | — | — | (29,900 | ) | |||||||||||||||||
Principal payments on capital leases | — | — | (4,406 | ) | (118 | ) | — | (4,524 | ) | ||||||||||||||||
Deferred financing costs paid | — | — | (1,074 | ) | — | — | (1,074 | ) | |||||||||||||||||
Change in bank overdraft position | — | — | (107 | ) | — | — | (107 | ) | |||||||||||||||||
Repayments of long-term debt borrowings | — | — | (95 | ) | — | — | (95 | ) | |||||||||||||||||
Net cash provided by (used in) financing activities | — | 292 | (4,394 | ) | (118 | ) | (1,580 | ) | (5,800 | ) | |||||||||||||||
Net increase in cash and cash equivalents | — | — | 4 | 58 | — | 62 | |||||||||||||||||||
Cash and cash equivalents – beginning of period | — | — | 31,586 | 836 | — | 32,422 | |||||||||||||||||||
Cash and cash equivalents – end of period | $ | — | $ | — | $ | 31,590 | $ | 894 | $ | — | $ | 32,484 | |||||||||||||
Recovered_Sheet1
The Company, Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 4 Months Ended | |
In Millions, except Share data, unless otherwise specified | Apr. 19, 2014 | Dec. 28, 2013 |
Segment | ||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Percentage of equity interest held prior to acquisition | 7.00% | ' |
Number of ownership shares | 126,560 | 126,560 |
Term loan borrowed funds used for acquisition | $12.30 | ' |
Number of reportable segment | 1 | ' |
Fuel [Member] | ' | ' |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Services offered by supermarkets | 52 | ' |
Pharmacy [Member] | ' | ' |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Services offered by supermarkets | 79 | ' |
Members of Management [Member] | ' | ' |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Number of ownership shares | 6 | ' |
Supermarkets [Member] | ' | ' |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Number of retail supermarkets | 155 | ' |
Additional operated supermarkets by franchisees | 5 | ' |
Recovered_Sheet2
The Company, Basis of Presentation and Summary of Significant Accounting Policies - Summary of Sales Revenue by Type of Product (Detail) (USD $) | 4 Months Ended | |
In Thousands, unless otherwise specified | Apr. 19, 2014 | Apr. 20, 2013 |
Sales Revenue, Goods, Net [Abstract] | ' | ' |
Sales revenue | $756,539 | $735,809 |
Sale revenue percentage | 100.00% | 100.00% |
Other [Member] | ' | ' |
Sales Revenue, Goods, Net [Abstract] | ' | ' |
Sales revenue | 6,768 | 5,474 |
Sale revenue percentage | 0.90% | 0.60% |
Fuel [Member] | ' | ' |
Sales Revenue, Goods, Net [Abstract] | ' | ' |
Sales revenue | 68,083 | 66,618 |
Sale revenue percentage | 9.00% | 9.10% |
Non-perishables [Member] | ' | ' |
Sales Revenue, Goods, Net [Abstract] | ' | ' |
Sales revenue | 424,428 | 419,053 |
Sale revenue percentage | 56.10% | 57.00% |
Perishable [Member] | ' | ' |
Sales Revenue, Goods, Net [Abstract] | ' | ' |
Sales revenue | 207,151 | 196,400 |
Sale revenue percentage | 27.40% | 26.70% |
Pharmacy [Member] | ' | ' |
Sales Revenue, Goods, Net [Abstract] | ' | ' |
Sales revenue | $50,109 | $48,264 |
Sale revenue percentage | 6.60% | 6.60% |
Recovered_Sheet3
The Company, Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Carrying and Estimated Values of Debt Instruments (Detail) (USD $) | Apr. 19, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Carrying value of long-term debt: | ' | ' |
Current portion of long-term debt | $501 | $2,309 |
Long-term debt | 662,693 | 664,186 |
Total carrying value of long-term debt | 663,194 | 666,495 |
Fair value of long-term debt | 714,528 | 719,861 |
Excess of fair value over carrying value | $51,334 | $53,366 |
Business_Acquisitions_Addition
Business Acquisitions - Additional Information (Detail) (USD $) | 0 Months Ended |
Dec. 01, 2013 | |
Business Acquisition [Line Items] | ' |
Deferred tax assets | $50,100,000 |
Deferred tax assets, net operating losses | 24,400,000 |
Deferred tax liabilities | 11,500,000 |
Deferred tax assets, valuation allowance | 43,900,000 |
Deferred tax liabilities , net | 86,400,000 |
Management Purchase [Member] | ' |
Business Acquisition [Line Items] | ' |
Transaction cost | 15,800,000 |
Cash consideration, businesses acquisition | $20,860,000 |
Indefinite-lived Intangible Assets [Member] | Minimum [Member] | Income Approach Valuation Technique [Member] | ' |
Business Acquisition [Line Items] | ' |
Intangible assets, discount rate | 14.00% |
Indefinite-lived Intangible Assets [Member] | Maximum [Member] | Income Approach Valuation Technique [Member] | ' |
Business Acquisition [Line Items] | ' |
Intangible assets, discount rate | 16.00% |
Business_Acquisitions_Summary_
Business Acquisitions - Summary of Final Allocation of Purchase Price to Assets and Liabilities (Detail) (USD $) | Apr. 19, 2014 | Dec. 28, 2013 | Dec. 01, 2013 |
In Thousands, unless otherwise specified | Management Purchase [Member] | ||
Assets acquired: | ' | ' | ' |
Cash | ' | ' | $25,149 |
Accounts receivable | ' | ' | 66,244 |
Inventory | ' | ' | 149,911 |
Prepaid expenses | ' | ' | 14,905 |
Income taxes refundable | ' | ' | 116 |
Deferred tax assets | ' | ' | 1,122 |
Property and equipment | ' | ' | 385,811 |
Goodwill | 217,406 | 217,406 | 217,406 |
Intangible assets | ' | ' | 194,300 |
Other assets | ' | ' | 19,456 |
Total assets acquired | ' | ' | 1,074,420 |
Liabilities assumed: | ' | ' | ' |
Accounts payable | ' | ' | 81,588 |
Accrued expenses and other current liabilities | ' | ' | 113,544 |
Other long-term liabilities | ' | ' | 31,196 |
Capital lease obligations | ' | ' | 124,149 |
Long-term debt | ' | ' | 654,177 |
Deferred tax liabilities | ' | ' | 48,906 |
Total liabilities assumed | ' | ' | 1,053,560 |
Acquisition price | ' | ' | $20,860 |
Business_Acquisitions_Unaudite
Business Acquisitions - Unaudited Pro Forma Results for GU Acquisition (Detail) (Predecessor [Member], Management Purchase [Member], USD $) | 4 Months Ended |
In Thousands, unless otherwise specified | Apr. 19, 2014 |
Predecessor [Member] | Management Purchase [Member] | ' |
Business Acquisition Pro Forma Information [Line Items] | ' |
Net sales | $735,809 |
Operating loss | -5,685 |
Net loss | ($25,084) |
Recovered_Sheet4
Goodwill and Intangible Assets Net - Summary of Change in Goodwill (Detail) (USD $) | Apr. 19, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill [Roll Forward] | ' | ' |
Goodwill, Beginning Balance | $217,406 | $217,406 |
Goodwill, Ending Balance | $217,406 | $217,406 |
Recovered_Sheet5
Goodwill and Intangible Assets Net - Additional Information (Detail) (USD $) | 4 Months Ended | |
Apr. 19, 2014 | Apr. 20, 2013 | |
Goodwill [Line Items] | ' | ' |
Goodwill impairment charges | $0 | $0 |
Amortization expense | 3,700,000 | 2,600,000 |
Contra expense related to amortization of unfavorable lease rights | 100,000 | 500,000 |
2014 (remaining period) | 8,390,000 | ' |
2016 | 10,729,000 | ' |
2017 | 7,724,000 | ' |
2018 | 6,557,000 | ' |
Thereafter | 19,577,000 | ' |
Tradename [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Impairment | 0 | 0 |
Unfavorable lease rights [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
2014 (remaining period) | 200,000 | ' |
2015 | 400,000 | ' |
2016 | 400,000 | ' |
2017 | 400,000 | ' |
2018 | 400,000 | ' |
Thereafter | $1,400,000 | ' |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets Net - Summary of Intangible Assets, Net of Accumulated Amortization (Detail) (USD $) | 4 Months Ended | |
In Thousands, unless otherwise specified | Apr. 19, 2014 | Dec. 28, 2013 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ' | ' |
Gross Carrying Amount | $194,300 | $194,300 |
Accumulated Amortization | -4,690 | -961 |
Net Carrying Amount | 189,610 | 193,339 |
Weighted Average Amortization Period | '12 years 3 months 18 days | ' |
Tradename - indefinite [Member] | ' | ' |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ' | ' |
Indefinite-Lived - Gross Carrying Amount | 131,000 | 131,000 |
Weighted Average Amortization Period, Indefinite Life | 'Indefinite life | ' |
Customer relationships [Member] | ' | ' |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ' | ' |
Gross Carrying Amount | 28,400 | 28,400 |
Accumulated Amortization | -2,761 | -568 |
Net Carrying Amount | 25,639 | 27,832 |
Weighted Average Amortization Period | '14 years | ' |
Favorable lease rights [Member] | ' | ' |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ' | ' |
Gross Carrying Amount | 21,600 | 21,600 |
Accumulated Amortization | -1,168 | -233 |
Net Carrying Amount | 20,432 | 21,367 |
Weighted Average Amortization Period | '9 years | ' |
Franchise agreements [Member] | ' | ' |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ' | ' |
Gross Carrying Amount | 13,300 | 13,300 |
Accumulated Amortization | -761 | -160 |
Net Carrying Amount | $12,539 | $13,140 |
Weighted Average Amortization Period | '14 years | ' |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets Net - Summary of Expected Future Amortization of Intangible Assets (Detail) (USD $) | Apr. 19, 2014 |
In Thousands, unless otherwise specified | |
Finite Lived Intangible Assets Future Amortization Expense [Abstract] | ' |
Future amortization expense, 2014 (remaining period) | $8,390 |
Future amortization expense, 2015 | 10,729 |
Future amortization expense, 2016 | 7,724 |
Future amortization expense, 2017 | 6,557 |
Future amortization expense, 2018 | 5,633 |
Future amortization expense, Thereafter | $19,577 |
Recovered_Sheet6
Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses and Other Current Liabilities (Detail) (USD $) | Apr. 19, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Accrued expenses and other current liabilities | ' | ' |
Interest payable | $18,844 | $2,272 |
Wages, taxes and benefits | 16,992 | 18,391 |
Lottery | 12,122 | 10,519 |
Property and equipment expenditures | 8,755 | 4,285 |
Self-insurance reserves | 6,033 | 6,033 |
Union medical, pension and 401(k) | 4,104 | 4,589 |
Professional and legal fees | 3,638 | 18,854 |
Sales and use tax | 3,553 | 6,279 |
Gift cards | 3,333 | 7,312 |
Utilities | 2,821 | 2,714 |
Repairs and maintenance | 1,741 | 2,539 |
Money orders | 1,448 | 1,456 |
Other | 10,938 | 12,988 |
Accrued expenses and other current liabilities, Total | $94,322 | $98,231 |
Recovered_Sheet7
Accrued Expenses and Other Current Liabilities - Additional Information (Detail) (Management Purchase [Member], USD $) | 4 Months Ended |
In Millions, unless otherwise specified | Apr. 19, 2014 |
Management Purchase [Member] | ' |
Accrued Expenses And Other Liabilities [Line Items] | ' |
Professional and legal fees paid | $15 |
Capital_Lease_Obligations_Addi
Capital Lease Obligations - Additional Information (Detail) (USD $) | 4 Months Ended |
Apr. 19, 2014 | |
Leases [Line Items] | ' |
Leases term | '25 years |
Leases expire year | '2034 |
Cash proceeds from sale-leaseback of properties | $12,750,000 |
Underlying cash payments to remove the related land and obligations | $0 |
Minimum [Member] | ' |
Leases [Line Items] | ' |
Leases expire year | '2023 |
Maximum [Member] | ' |
Leases [Line Items] | ' |
Leases expire year | '2068 |
Capital_Lease_Obligations_Sche
Capital Lease Obligations - Schedule of Future Minimum Lease Rental Payments for Capital Lease Obligations (Detail) (USD $) | Apr. 19, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Leases [Abstract] | ' | ' |
Future lease payment, 2014 (remaining period) | $20,591 | ' |
Future lease payment, 2015 | 27,308 | ' |
Future lease payment, 2016 | 25,988 | ' |
Future lease payment, 2017 | 22,833 | ' |
Future lease payment, 2018 | 19,625 | ' |
Future lease payment, Thereafter | 80,626 | ' |
Total minimum lease payments | 196,971 | ' |
Less amounts representing interest | -127,975 | ' |
Present value of net minimum lease payments | 68,996 | ' |
Less current obligations | -8,583 | -8,314 |
Long-term cash obligations | 60,413 | ' |
Non-cash obligations | 68,552 | ' |
Total long-term capital lease obligations | $128,965 | ' |
Debt_Summary_of_Longterm_Debt_
Debt - Summary of Long-term Debt (Detail) (USD $) | Apr. 19, 2014 | Dec. 28, 2013 | Nov. 29, 2013 | Apr. 19, 2014 | Dec. 28, 2013 | Apr. 19, 2014 | Dec. 28, 2013 | Apr. 19, 2014 | Dec. 28, 2013 | 15-May-13 | Apr. 19, 2014 | Dec. 28, 2013 | Apr. 19, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | 2017 ABL Facility [Member] | 2017 ABL Facility [Member] | Holding I [Member] | Holding I [Member] | Holding II [Member] | Holding II [Member] | Holding II [Member] | Other Loans [Member] | Other Loans [Member] | Mortgage Note Payable [Member] | Mortgage Note Payable [Member] | |||
Secured Debt [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes | ' | ' | $12,300 | ' | ' | $460,000 | $460,000 | $150,000 | $150,000 | ' | ' | ' | ' | ' |
Discount on notes | ' | ' | ' | ' | ' | ' | ' | -1,277 | -1,353 | -1,500 | ' | ' | ' | ' |
ABL Facility | ' | ' | ' | 52,100 | 54,800 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,371 | 2,604 | ' | ' |
Mortgage note payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 444 |
Total debt | 663,194 | 666,495 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current portion | -501 | -2,309 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total long-term debt | $662,693 | $664,186 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 0 Months Ended | 4 Months Ended | 12 Months Ended | 4 Months Ended | 0 Months Ended | 4 Months Ended | 0 Months Ended | 4 Months Ended | |||||||||||
Nov. 29, 2013 | 15-May-13 | Dec. 20, 2012 | Apr. 19, 2014 | Apr. 19, 2014 | Dec. 28, 2013 | Dec. 14, 2012 | Apr. 19, 2014 | Dec. 28, 2013 | Apr. 19, 2014 | Apr. 19, 2014 | Dec. 20, 2012 | Apr. 19, 2014 | Dec. 28, 2013 | Dec. 20, 2012 | 15-May-13 | Apr. 19, 2014 | Dec. 28, 2013 | Apr. 19, 2014 | |
2017 ABL Facility [Member] | 2017 ABL Facility [Member] | 2017 ABL Facility [Member] | 2017 ABL Facility [Member] | 2017 ABL Facility [Member] | 2017 ABL Facility [Member] | 2017 ABL Facility [Member] | Holding I [Member] | Holding I [Member] | Holding I [Member] | Old Senior Secured Notes [Member] | Holding II [Member] | Holding II [Member] | Holding II [Member] | Holding II [Member] | |||||
Letter of Credit [Member] | Letter of Credit [Member] | Prime Rate Plus [Member] | LIBOR Plus [Member] | Condition One [Member] | |||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior secured notes issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $460,000,000 | ' | ' | ' | $150,000,000 | ' | ' | ' |
Interest rate, notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.88% | ' | ' | ' | 8.75% | ' | ' | 9.50% |
Maturity date of senior notes | ' | ' | ' | ' | 14-Dec-17 | ' | ' | ' | ' | ' | ' | 15-Dec-17 | ' | ' | ' | 15-Jun-18 | ' | ' | ' |
Proceeds from long-term debt borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 148,500,000 | ' | ' | ' |
Debt original issue discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | 1,277,000 | 1,353,000 | ' |
Dividend to shareholders | ' | 141,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend per share paid | ' | $980 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Semi-annual interest payments date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The Holding I Notes mature December 15, 2017 and require semi-annual interest payments on June 15 and December 15. | ' | ' | ' | 'The Holding II Notes mature June 15, 2018 and require semi-annual interest payments on June 15 and December 15. | ' | ' |
Repayments of long-term debt borrowings | ' | ' | ' | 2,621,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 350,000,000 | ' | ' | ' | ' |
Dividend to shareholders | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity in ABL Facility | ' | ' | ' | ' | ' | ' | 125,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in capacity upon met specified condition | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Monetary limit of storage of acquisitions | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Monetary limit of capital expenditures | ' | ' | ' | ' | 60,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum excess availability | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum excess availability reduction per quarter | ' | ' | ' | ' | 2,250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unused availability under the ABL Facility | ' | ' | ' | ' | 33,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective interest rate on borrowings under the ABL Facility | ' | ' | ' | ' | 2.04% | 1.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of credit outstanding | ' | ' | ' | ' | ' | ' | ' | 22,400,000 | 17,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument interest rate description | ' | ' | ' | 'LIBOR plus a margin of 300 basis points | ' | ' | ' | ' | ' | '50 to 100 basis points | '150 to 200 basis points | ' | ' | ' | ' | ' | ' | ' | ' |
Loan carrying amount | $12,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $460,000,000 | $460,000,000 | ' | ' | $150,000,000 | $150,000,000 | ' |
Interest rate of term loan | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Summary_of_Income
Income Taxes - Summary of Income Tax Benefit (Expense) (Detail) (USD $) | 4 Months Ended | |
In Thousands, unless otherwise specified | Apr. 19, 2014 | Apr. 20, 2013 |
Predecessor [Member] | ||
Income Taxes [Line Items] | ' | ' |
Current | ($17) | $1 |
Deferred | 2,514 | -428 |
Total income tax benefit (expense) | $2,497 | ($427) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 4 Months Ended | |
Apr. 19, 2014 | Apr. 20, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' |
Effective income tax rate | 15.40% | -11.30% |
Effective income tax rate without adjustment valuation allowance | 41.50% | 39.00% |
Shareholders_Deficit_Equity_Ad
Shareholders' (Deficit) Equity - Additional Information (Detail) (USD $) | 1 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Equity [Abstract] | ' |
Dividend made by company | $2.40 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 0 Months Ended | 4 Months Ended | 12 Months Ended | 4 Months Ended | 4 Months Ended | 0 Months Ended | |||||||||||
Sep. 24, 2012 | Apr. 19, 2014 | Dec. 28, 2013 | Apr. 19, 2014 | Apr. 19, 2014 | Apr. 19, 2014 | Apr. 19, 2014 | Apr. 19, 2014 | Apr. 19, 2014 | Apr. 19, 2014 | Apr. 19, 2014 | Apr. 19, 2014 | Apr. 19, 2014 | 27-May-14 | Sep. 24, 2012 | Apr. 19, 2014 | Dec. 28, 2013 | |
Store | Agreement | Teamster Local 264 [Member] | Multiemployer Plans, Pension [Member] | Non Union Employee [Member] | Local One Collective Bargaining Arrangement [Member] | Local One Collective Bargaining Arrangement [Member] | Local One Collective Bargaining Arrangement [Member] | Local One Collective Bargaining Arrangement [Member] | Non Local Collective Bargaining Arrangement One [Member] | Non Local Collective Bargaining Arrangement Two [Member] | Local Three Collective Bargaining Arrangement [Member] | Subsequent Event [Member] | Supplemental Supply Agreement [Member] | Pending Litigation [Member] | Pending Litigation [Member] | ||
Employees | Four Collective Bargaining Agreements [Member] | Four Collective Bargaining Agreements [Member] | Two Collective Bargaining Agreements [Member] | Two Collective Bargaining Agreements [Member] | Teamster Local 264 [Member] | Multiemployer Plans, Pension [Member] | |||||||||||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Agreement | |||||||||||||
Commitments Contingencies And Litigation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of supermarkets acquired | 21 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreement expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23-Sep-22 | ' | ' |
Minimum purchase requirement | ' | ' | 95.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expiration date of supply agreement | ' | ' | 28-Feb-17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued potential liability | ' | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of employed associates | ' | 15,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of associates engaged in various unions | ' | 83.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of members working in distribution facilities | ' | ' | ' | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of grand union acquired supermarket | ' | ' | ' | ' | ' | 23.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of collective bargaining agreements | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' |
Expiration date of collective bargaining agreements | ' | ' | ' | ' | ' | ' | '2014-03 | '2014-04 | '2014-08 | '2015-10 | '2015-02 | '2016-04 | ' | ' | ' | ' | ' |
Expiration date of collective bargaining agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2019-08 | ' | ' | ' | ' |
Multiemployer pension plan rejected contributions | ' | ' | ' | ' | 1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liability estimate due to withdrawal from fund | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 183,700,000 | ' | ' | ' |
Contribution payable period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '240 months | ' | ' | ' |
Monthly installment amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 641,514 | ' | ' | ' |
Accrued amount related to legal proceedings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 |
Recovered_Sheet8
Guarantor Financial Statements - Additional Information (Detail) | Dec. 28, 2013 | 31-May-13 |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | ' | ' |
Investment owned | 100.00% | 100.00% |
Recovered_Sheet9
Guarantor Financial Statements - Condensed Consolidated Balance Sheet (Detail) (USD $) | Apr. 19, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $27,598 | $29,913 |
Accounts receivable, net | 62,172 | 64,521 |
Intercompany receivables | ' | ' |
Inventory, net | 138,379 | 142,296 |
Prepaid expenses and other current assets | 16,497 | 10,755 |
Income taxes refundable | 58 | 110 |
Current deferred tax assets | 6,129 | 6,129 |
Total current assets | 250,833 | 253,724 |
Property and equipment, net | 386,457 | 385,581 |
Goodwill | 217,406 | 217,406 |
Intangible assets, net | 189,610 | 193,339 |
Other assets | 17,802 | 18,986 |
Investment in subsidiaries | ' | ' |
Total assets | 1,062,108 | 1,069,036 |
Current liabilities: | ' | ' |
Accounts payable | 81,463 | 79,700 |
Intercompany payables | ' | ' |
Accrued expenses and other current liabilities | 94,322 | 98,231 |
Current portion of capital lease obligations | 8,583 | 8,314 |
Current portion of long-term debt | 501 | 2,309 |
Total current liabilities | 184,869 | 188,554 |
Capital lease obligations | 128,965 | 114,286 |
Long-term debt | 662,693 | 664,186 |
Other long-term liabilities | 33,598 | 31,470 |
Non-current deferred tax liabilities | 49,730 | 52,244 |
Total liabilities | 1,059,855 | 1,050,740 |
Total shareholders' equity | 2,253 | 18,296 |
Total liabilities and shareholders' equity | 1,062,108 | 1,069,036 |
Consolidation, Eliminations [Member] | ' | ' |
Current assets: | ' | ' |
Cash and cash equivalents | ' | ' |
Accounts receivable, net | ' | ' |
Intercompany receivables | -87,942 | -85,056 |
Inventory, net | ' | ' |
Prepaid expenses and other current assets | ' | ' |
Income taxes refundable | ' | ' |
Current deferred tax assets | ' | ' |
Total current assets | -87,942 | -85,056 |
Property and equipment, net | ' | ' |
Goodwill | ' | ' |
Intangible assets, net | ' | ' |
Other assets | -4,674 | -3,363 |
Investment in subsidiaries | -508,107 | -529,309 |
Total assets | -600,723 | -617,728 |
Current liabilities: | ' | ' |
Accounts payable | ' | ' |
Intercompany payables | -87,942 | -85,056 |
Accrued expenses and other current liabilities | ' | ' |
Current portion of capital lease obligations | ' | ' |
Current portion of long-term debt | ' | ' |
Total current liabilities | -87,942 | -85,056 |
Capital lease obligations | ' | ' |
Long-term debt | -3,041 | -3,041 |
Other long-term liabilities | ' | ' |
Non-current deferred tax liabilities | -1,633 | -322 |
Total liabilities | -92,616 | -88,419 |
Total shareholders' equity | -508,107 | -529,309 |
Total liabilities and shareholders' equity | -600,723 | -617,728 |
Tops Holding II Corporation [Member] | ' | ' |
Current assets: | ' | ' |
Cash and cash equivalents | ' | ' |
Accounts receivable, net | ' | ' |
Intercompany receivables | ' | ' |
Inventory, net | ' | ' |
Prepaid expenses and other current assets | ' | ' |
Income taxes refundable | ' | ' |
Current deferred tax assets | ' | ' |
Total current assets | ' | ' |
Property and equipment, net | ' | ' |
Goodwill | ' | ' |
Intangible assets, net | ' | ' |
Other assets | 5,954 | 6,309 |
Investment in subsidiaries | 149,543 | 161,144 |
Total assets | 155,497 | 167,453 |
Current liabilities: | ' | ' |
Accounts payable | ' | ' |
Intercompany payables | ' | ' |
Accrued expenses and other current liabilities | 4,521 | 510 |
Current portion of capital lease obligations | ' | ' |
Current portion of long-term debt | ' | ' |
Total current liabilities | 4,521 | 510 |
Capital lease obligations | ' | ' |
Long-term debt | 148,723 | 148,647 |
Other long-term liabilities | ' | ' |
Non-current deferred tax liabilities | ' | ' |
Total liabilities | 153,244 | 149,157 |
Total shareholders' equity | 2,253 | 18,296 |
Total liabilities and shareholders' equity | 155,497 | 167,453 |
Tops Holding LLC [Member] | ' | ' |
Current assets: | ' | ' |
Cash and cash equivalents | ' | ' |
Accounts receivable, net | ' | ' |
Intercompany receivables | ' | ' |
Inventory, net | ' | ' |
Prepaid expenses and other current assets | ' | ' |
Income taxes refundable | ' | ' |
Current deferred tax assets | ' | ' |
Total current assets | ' | ' |
Property and equipment, net | ' | ' |
Goodwill | ' | ' |
Intangible assets, net | ' | ' |
Other assets | ' | ' |
Investment in subsidiaries | 155,243 | 166,844 |
Total assets | 155,243 | 166,844 |
Current liabilities: | ' | ' |
Accounts payable | ' | ' |
Intercompany payables | 5,700 | 5,700 |
Accrued expenses and other current liabilities | ' | ' |
Current portion of capital lease obligations | ' | ' |
Current portion of long-term debt | ' | ' |
Total current liabilities | 5,700 | 5,700 |
Capital lease obligations | ' | ' |
Long-term debt | ' | ' |
Other long-term liabilities | ' | ' |
Non-current deferred tax liabilities | ' | ' |
Total liabilities | 5,700 | 5,700 |
Total shareholders' equity | 149,543 | 161,144 |
Total liabilities and shareholders' equity | 155,243 | 166,844 |
Tops Markets, LLC [Member] | ' | ' |
Current assets: | ' | ' |
Cash and cash equivalents | 26,773 | 29,051 |
Accounts receivable, net | 50,844 | 52,453 |
Intercompany receivables | 83,780 | 78,963 |
Inventory, net | 102,390 | 106,487 |
Prepaid expenses and other current assets | 13,219 | 7,817 |
Income taxes refundable | 58 | 110 |
Current deferred tax assets | 6,129 | 6,129 |
Total current assets | 283,193 | 281,010 |
Property and equipment, net | 333,850 | 317,547 |
Goodwill | 20,710 | 51,207 |
Intangible assets, net | 139,657 | 142,955 |
Other assets | 13,481 | 12,999 |
Investment in subsidiaries | 203,321 | 201,321 |
Total assets | 994,212 | 1,007,039 |
Current liabilities: | ' | ' |
Accounts payable | 63,923 | 62,971 |
Intercompany payables | 4,162 | 6,093 |
Accrued expenses and other current liabilities | 71,613 | 73,363 |
Current portion of capital lease obligations | 8,296 | 7,918 |
Current portion of long-term debt | 470 | 2,279 |
Total current liabilities | 148,464 | 152,624 |
Capital lease obligations | 117,324 | 111,745 |
Long-term debt | 516,446 | 518,007 |
Other long-term liabilities | 28,161 | 26,730 |
Non-current deferred tax liabilities | 28,574 | 31,089 |
Total liabilities | 838,969 | 840,195 |
Total shareholders' equity | 155,243 | 166,844 |
Total liabilities and shareholders' equity | 994,212 | 1,007,039 |
Guarantor Subsidiaries [Member] | ' | ' |
Current assets: | ' | ' |
Cash and cash equivalents | 825 | 862 |
Accounts receivable, net | 11,328 | 12,068 |
Intercompany receivables | 4,162 | 6,093 |
Inventory, net | 35,989 | 35,809 |
Prepaid expenses and other current assets | 3,278 | 2,938 |
Income taxes refundable | ' | ' |
Current deferred tax assets | ' | ' |
Total current assets | 55,582 | 57,770 |
Property and equipment, net | 52,607 | 68,034 |
Goodwill | 196,696 | 166,199 |
Intangible assets, net | 49,953 | 50,384 |
Other assets | 3,041 | 3,041 |
Investment in subsidiaries | ' | ' |
Total assets | 357,879 | 345,428 |
Current liabilities: | ' | ' |
Accounts payable | 17,540 | 16,729 |
Intercompany payables | 78,080 | 73,263 |
Accrued expenses and other current liabilities | 18,188 | 24,358 |
Current portion of capital lease obligations | 287 | 396 |
Current portion of long-term debt | 31 | 30 |
Total current liabilities | 114,126 | 114,776 |
Capital lease obligations | 11,641 | 2,541 |
Long-term debt | 565 | 573 |
Other long-term liabilities | 5,437 | 4,740 |
Non-current deferred tax liabilities | 22,789 | 21,477 |
Total liabilities | 154,558 | 144,107 |
Total shareholders' equity | 203,321 | 201,321 |
Total liabilities and shareholders' equity | $357,879 | $345,428 |
Guarantor_Financial_Statements2
Guarantor Financial Statements - Condensed Consolidated Statement of Comprehensive Loss (Detail) (USD $) | 4 Months Ended | |
In Thousands, unless otherwise specified | Apr. 19, 2014 | Apr. 20, 2013 |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net sales | $756,539 | $735,809 |
Cost of goods sold | -526,635 | ' |
Distribution costs | -16,226 | ' |
Gross profit | 213,678 | ' |
Operating expenses: | ' | ' |
Wages, salaries and benefits | -106,958 | ' |
Selling and general expenses | -41,404 | ' |
Administrative expenses | -21,024 | ' |
Rent expense, net | -8,218 | ' |
Depreciation and amortization | -20,826 | ' |
Advertising | -6,339 | ' |
Total operating expenses | -204,769 | ' |
Operating income | 8,909 | ' |
Interest expense, net | -25,077 | ' |
Equity (loss) income from subsidiaries | ' | ' |
(Loss) income before income taxes | -16,168 | ' |
Income tax benefit (expense) | 2,497 | ' |
Net (loss) income | -13,671 | ' |
Other comprehensive income | ' | ' |
Comprehensive (loss) income | -13,671 | ' |
Predecessor [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net sales | ' | 735,809 |
Cost of goods sold | ' | -513,151 |
Distribution costs | ' | -14,517 |
Gross profit | ' | 208,141 |
Operating expenses: | ' | ' |
Wages, salaries and benefits | ' | -104,045 |
Selling and general expenses | ' | -36,308 |
Administrative expenses | ' | -22,254 |
Rent expense, net | ' | -7,565 |
Depreciation and amortization | ' | -17,004 |
Advertising | ' | -5,767 |
Total operating expenses | ' | -192,943 |
Operating income | ' | 15,198 |
Interest expense, net | ' | -18,972 |
(Loss) income before income taxes | ' | -3,774 |
Income tax benefit (expense) | ' | -427 |
Net (loss) income | ' | -4,201 |
Other comprehensive income | ' | ' |
Comprehensive (loss) income | ' | -4,201 |
Consolidation, Eliminations [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net sales | -376 | ' |
Cost of goods sold | ' | ' |
Distribution costs | ' | ' |
Gross profit | -376 | ' |
Operating expenses: | ' | ' |
Wages, salaries and benefits | ' | ' |
Selling and general expenses | 376 | ' |
Administrative expenses | ' | ' |
Rent expense, net | ' | ' |
Depreciation and amortization | ' | ' |
Advertising | ' | ' |
Total operating expenses | 376 | ' |
Operating income | ' | ' |
Interest expense, net | ' | ' |
Equity (loss) income from subsidiaries | 16,460 | ' |
(Loss) income before income taxes | 16,460 | ' |
Income tax benefit (expense) | ' | ' |
Net (loss) income | 16,460 | ' |
Other comprehensive income | ' | ' |
Comprehensive (loss) income | 16,460 | ' |
Consolidation, Eliminations [Member] | Predecessor [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net sales | ' | -363 |
Gross profit | ' | -363 |
Operating expenses: | ' | ' |
Selling and general expenses | ' | 363 |
Total operating expenses | ' | 363 |
Equity (loss) income from subsidiaries | ' | 5,351 |
(Loss) income before income taxes | ' | 5,351 |
Net (loss) income | ' | 5,351 |
Comprehensive (loss) income | ' | 5,351 |
Tops Holding II Corporation [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net sales | ' | ' |
Cost of goods sold | ' | ' |
Distribution costs | ' | ' |
Gross profit | ' | ' |
Operating expenses: | ' | ' |
Wages, salaries and benefits | ' | ' |
Selling and general expenses | ' | ' |
Administrative expenses | ' | ' |
Rent expense, net | ' | ' |
Depreciation and amortization | ' | ' |
Advertising | ' | ' |
Total operating expenses | ' | ' |
Operating income | ' | ' |
Interest expense, net | -4,441 | ' |
Equity (loss) income from subsidiaries | -9,230 | ' |
(Loss) income before income taxes | -13,671 | ' |
Income tax benefit (expense) | ' | ' |
Net (loss) income | -13,671 | ' |
Other comprehensive income | ' | ' |
Comprehensive (loss) income | -13,671 | ' |
Tops Holding II Corporation [Member] | Predecessor [Member] | ' | ' |
Operating expenses: | ' | ' |
Administrative expenses | ' | -258 |
Total operating expenses | ' | -258 |
Operating income | ' | -258 |
Equity (loss) income from subsidiaries | ' | -3,943 |
(Loss) income before income taxes | ' | -4,201 |
Net (loss) income | ' | -4,201 |
Comprehensive (loss) income | ' | -4,201 |
Tops Holding LLC [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net sales | ' | ' |
Cost of goods sold | ' | ' |
Distribution costs | ' | ' |
Gross profit | ' | ' |
Operating expenses: | ' | ' |
Wages, salaries and benefits | ' | ' |
Selling and general expenses | ' | ' |
Administrative expenses | ' | ' |
Rent expense, net | ' | ' |
Depreciation and amortization | ' | ' |
Advertising | ' | ' |
Total operating expenses | ' | ' |
Operating income | ' | ' |
Interest expense, net | ' | ' |
Equity (loss) income from subsidiaries | -9,230 | ' |
(Loss) income before income taxes | -9,230 | ' |
Income tax benefit (expense) | ' | ' |
Net (loss) income | -9,230 | ' |
Other comprehensive income | ' | ' |
Comprehensive (loss) income | -9,230 | ' |
Tops Holding LLC [Member] | Predecessor [Member] | ' | ' |
Operating expenses: | ' | ' |
Administrative expenses | ' | -293 |
Total operating expenses | ' | -293 |
Operating income | ' | -293 |
Equity (loss) income from subsidiaries | ' | -3,650 |
(Loss) income before income taxes | ' | -3,943 |
Net (loss) income | ' | -3,943 |
Comprehensive (loss) income | ' | -3,943 |
Tops Markets, LLC [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net sales | 585,334 | ' |
Cost of goods sold | -412,592 | ' |
Distribution costs | -12,505 | ' |
Gross profit | 160,237 | ' |
Operating expenses: | ' | ' |
Wages, salaries and benefits | -79,906 | ' |
Selling and general expenses | -31,411 | ' |
Administrative expenses | -15,970 | ' |
Rent expense, net | -5,368 | ' |
Depreciation and amortization | -17,156 | ' |
Advertising | -4,885 | ' |
Total operating expenses | -154,696 | ' |
Operating income | 5,541 | ' |
Interest expense, net | -20,579 | ' |
Equity (loss) income from subsidiaries | 2,000 | ' |
(Loss) income before income taxes | -13,038 | ' |
Income tax benefit (expense) | 3,808 | ' |
Net (loss) income | -9,230 | ' |
Other comprehensive income | ' | ' |
Comprehensive (loss) income | -9,230 | ' |
Tops Markets, LLC [Member] | Predecessor [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net sales | ' | 567,801 |
Cost of goods sold | ' | -401,382 |
Distribution costs | ' | -10,803 |
Gross profit | ' | 155,616 |
Operating expenses: | ' | ' |
Wages, salaries and benefits | ' | -77,363 |
Selling and general expenses | ' | -27,680 |
Administrative expenses | ' | -16,183 |
Rent expense, net | ' | -4,795 |
Depreciation and amortization | ' | -13,157 |
Advertising | ' | -4,449 |
Total operating expenses | ' | -143,627 |
Operating income | ' | 11,989 |
Interest expense, net | ' | -18,923 |
Equity (loss) income from subsidiaries | ' | 2,242 |
(Loss) income before income taxes | ' | -4,692 |
Income tax benefit (expense) | ' | 1,042 |
Net (loss) income | ' | -3,650 |
Comprehensive (loss) income | ' | -3,650 |
Guarantor Subsidiaries [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net sales | 171,581 | ' |
Cost of goods sold | -114,043 | ' |
Distribution costs | -3,721 | ' |
Gross profit | 53,817 | ' |
Operating expenses: | ' | ' |
Wages, salaries and benefits | -27,052 | ' |
Selling and general expenses | -10,369 | ' |
Administrative expenses | -5,054 | ' |
Rent expense, net | -2,850 | ' |
Depreciation and amortization | -3,670 | ' |
Advertising | -1,454 | ' |
Total operating expenses | -50,449 | ' |
Operating income | 3,368 | ' |
Interest expense, net | -57 | ' |
Equity (loss) income from subsidiaries | ' | ' |
(Loss) income before income taxes | 3,311 | ' |
Income tax benefit (expense) | -1,311 | ' |
Net (loss) income | 2,000 | ' |
Other comprehensive income | ' | ' |
Comprehensive (loss) income | 2,000 | ' |
Guarantor Subsidiaries [Member] | Predecessor [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net sales | ' | 168,371 |
Cost of goods sold | ' | -111,769 |
Distribution costs | ' | -3,714 |
Gross profit | ' | 52,888 |
Operating expenses: | ' | ' |
Wages, salaries and benefits | ' | -26,682 |
Selling and general expenses | ' | -8,991 |
Administrative expenses | ' | -5,520 |
Rent expense, net | ' | -2,770 |
Depreciation and amortization | ' | -3,847 |
Advertising | ' | -1,318 |
Total operating expenses | ' | -49,128 |
Operating income | ' | 3,760 |
Interest expense, net | ' | -49 |
(Loss) income before income taxes | ' | 3,711 |
Income tax benefit (expense) | ' | -1,469 |
Net (loss) income | ' | 2,242 |
Comprehensive (loss) income | ' | $2,242 |
Guarantor_Financial_Statements3
Guarantor Financial Statements - Condensed Consolidated Statement of Cash Flows (Detail) (USD $) | 4 Months Ended | ||||||||||||||
In Thousands, unless otherwise specified | Apr. 19, 2014 | Apr. 19, 2014 | Apr. 20, 2013 | Apr. 20, 2013 | Apr. 19, 2014 | Apr. 20, 2013 | Apr. 19, 2014 | Apr. 19, 2014 | Apr. 20, 2013 | Apr. 19, 2014 | Apr. 19, 2014 | Apr. 20, 2013 | Apr. 20, 2013 | Apr. 19, 2014 | Apr. 20, 2013 |
2017 ABL Facility [Member] | Predecessor [Member] | Predecessor [Member] | Consolidation, Eliminations [Member] | Consolidation, Eliminations [Member] | Tops Holding II Corporation [Member] | Tops Holding LLC [Member] | Tops Holding LLC [Member] | Tops Markets, LLC [Member] | Tops Markets, LLC [Member] | Tops Markets, LLC [Member] | Tops Markets, LLC [Member] | Guarantor Subsidiaries [Member] | Guarantor Subsidiaries [Member] | ||
2017 ABL Facility [Member] | Predecessor [Member] | Predecessor [Member] | 2017 ABL Facility [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | |||||||||
2017 ABL Facility [Member] | |||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net cash (used in) provided by operating activities | $7,877 | ' | $18,163 | ' | ' | ' | ' | ' | ($292) | $23,008 | ' | $16,257 | ' | ($15,131) | $2,198 |
Cash flows (used in) provided by investing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash paid for property and equipment | -12,300 | ' | -12,301 | ' | ' | ' | ' | ' | ' | -11,662 | ' | -11,567 | ' | -638 | -734 |
Change in intercompany receivables position | ' | ' | ' | ' | -6,749 | 1,580 | ' | ' | ' | ' | ' | -292 | ' | 6,749 | -1,288 |
Net cash (used in) provided by investing activities | -12,300 | ' | -12,301 | ' | -6,749 | 1,580 | ' | ' | ' | -11,662 | ' | -11,859 | ' | 6,111 | -2,022 |
Cash flows provided by (used in) financing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend | -2,382 | ' | ' | ' | 4,764 | ' | -2,382 | -2,382 | ' | -2,382 | ' | ' | ' | ' | ' |
Capital contribution | ' | ' | ' | ' | -4,764 | ' | 2,382 | 2,382 | ' | ' | ' | ' | ' | ' | ' |
Borrowings on ABL Facility | 179,700 | 179,700 | 29,900 | 29,900 | ' | ' | ' | ' | ' | ' | 179,700 | ' | 29,900 | ' | ' |
Repayments on ABL Facility | -182,400 | -182,400 | -29,900 | -29,900 | ' | ' | ' | ' | ' | ' | -182,400 | ' | -29,900 | ' | ' |
Proceeds from sale leaseback financing transactions | 12,750 | ' | ' | ' | ' | ' | ' | ' | ' | 3,616 | ' | ' | ' | 9,134 | ' |
Repayments of long-term debt borrowings | -2,621 | ' | -95 | ' | ' | ' | ' | ' | ' | -2,613 | ' | -95 | ' | -8 | ' |
Principal payments on capital leases | -2,663 | ' | -4,524 | ' | ' | ' | ' | ' | ' | -2,520 | ' | -4,406 | ' | -143 | -118 |
Deferred financing costs paid | -211 | ' | -1,074 | ' | ' | ' | ' | ' | ' | -211 | ' | -1,074 | ' | ' | ' |
Change in bank overdraft position | -65 | ' | -107 | ' | ' | ' | ' | ' | ' | -65 | ' | -107 | ' | ' | ' |
Change in intercompany payables position | ' | ' | ' | ' | 6,749 | -1,580 | ' | ' | 292 | -6,749 | ' | 1,288 | ' | ' | ' |
Net cash provided by (used in) financing activities | 2,108 | ' | -5,800 | ' | 6,749 | -1,580 | ' | ' | 292 | -13,624 | ' | -4,394 | ' | 8,983 | -118 |
Net increase (decrease) in cash and cash equivalents | -2,315 | ' | 62 | ' | ' | ' | ' | ' | ' | -2,278 | ' | 4 | ' | -37 | 58 |
Cash and cash equivalents - beginning of period | 29,913 | ' | 32,422 | ' | ' | ' | ' | ' | ' | 29,051 | ' | 31,586 | ' | 862 | 836 |
Cash and cash equivalent - end of period | $27,598 | ' | $32,484 | ' | ' | ' | ' | ' | ' | $26,773 | ' | $31,590 | ' | $825 | $894 |