Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Oct. 04, 2014 | Nov. 17, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 4-Oct-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
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 $) | Oct. 04, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $29,029 | $29,913 |
Accounts receivable, net | 61,860 | 64,521 |
Inventory, net | 153,062 | 142,296 |
Prepaid expenses and other current assets | 16,362 | 10,755 |
Income taxes refundable | 69 | 110 |
Current deferred tax assets | 6,129 | 6,129 |
Total current assets | 266,511 | 253,724 |
Property and equipment, net | 386,475 | 388,476 |
Goodwill (Note 3) | 214,290 | 214,290 |
Intangible assets, net (Note 3) | 185,174 | 194,809 |
Other assets | 15,984 | 18,986 |
Total assets | 1,068,434 | 1,070,285 |
Current liabilities: | ' | ' |
Accounts payable | 87,181 | 79,700 |
Accrued expenses and other current liabilities (Note 4) | 90,961 | 98,231 |
Current portion of capital lease obligations (Note 5) | 8,362 | 8,314 |
Current portion of long-term debt (Note 6) | 1,960 | 2,309 |
Total current liabilities | 188,464 | 188,554 |
Capital lease obligations (Note 5) | 138,442 | 112,236 |
Long-term debt (Note 6) | 659,173 | 664,186 |
Other long-term liabilities | 34,606 | 31,470 |
Non-current deferred tax liabilities | 50,602 | 54,784 |
Total liabilities | 1,071,287 | 1,051,230 |
Commitments and contingencies (Note 9) | ' | ' |
Common shares ($0.001 par value; 300,000 authorized shares, 126,560 shares issued and outstanding as of October 4, 2014 and December 28, 2013) | 0 | 0 |
Paid-in capital | 8,402 | 20,860 |
Accumulated deficit | -11,739 | -1,854 |
Accumulated other comprehensive income, net of tax | 484 | 49 |
Total shareholders' (deficit) equity | -2,853 | 19,055 |
Total liabilities and shareholders' (deficit) equity | $1,068,434 | $1,070,285 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Oct. 04, 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 $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Oct. 04, 2014 | Oct. 04, 2014 | Oct. 05, 2013 | Oct. 05, 2013 |
Predecessor [Member] | Predecessor [Member] | |||
Net sales | $580,741 | $1,933,480 | $572,454 | $1,909,538 |
Cost of goods sold | -404,739 | -1,349,355 | -396,909 | -1,328,994 |
Distribution costs | -10,969 | -37,801 | -12,144 | -38,424 |
Gross profit | 165,033 | 546,324 | 163,401 | 542,120 |
Operating expenses: | ' | ' | ' | ' |
Wages, salaries and benefits | -80,305 | -267,505 | -78,513 | -263,345 |
Selling and general expenses | -27,471 | -96,938 | -26,979 | -90,161 |
Administrative expenses (inclusive of share-based compensation expense of $52, $0, $113 and $3,826) | -16,302 | -51,285 | -16,309 | -65,635 |
Rent expense, net | -6,233 | -20,506 | -5,843 | -18,719 |
Depreciation and amortization | -13,906 | -45,051 | -12,823 | -42,875 |
Advertising | -4,280 | -16,042 | -3,831 | -15,280 |
Impairment | ' | ' | -1,620 | -1,620 |
Total operating expenses | -148,497 | -497,327 | -145,918 | -497,635 |
Operating income | 16,536 | 48,997 | 17,483 | 44,485 |
Interest expense, net | -18,625 | -63,023 | -17,245 | -52,959 |
(Loss) income before income taxes | -2,089 | -14,026 | 238 | -8,474 |
Income tax benefit (expense) | 1,168 | 4,141 | -378 | -1,183 |
Net loss | -921 | -9,885 | -140 | -9,657 |
Other comprehensive (loss) income | -13 | 435 | 0 | 0 |
Comprehensive loss | ($934) | ($9,450) | ($140) | ($9,657) |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Oct. 04, 2014 | Oct. 04, 2014 | Oct. 05, 2013 | Oct. 05, 2013 |
Predecessor [Member] | Predecessor [Member] | |||
Share-based compensation expense included in administrative expenses | $52 | $113 | $0 | $3,826 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Oct. 04, 2014 | Oct. 05, 2013 |
Predecessor [Member] | ||
Cash flows provided by operating activities: | ' | ' |
Net loss | ($9,885) | ($9,657) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 52,861 | 54,544 |
Deferred income taxes | -4,182 | 1,182 |
Amortization of deferred financing costs | 3,031 | 2,156 |
LIFO inventory valuation adjustments | 2,848 | 41 |
Step rent adjustments | 1,754 | 383 |
Share-based compensation expense | 113 | 3,826 |
Impairment of long-lived assets | ' | 1,620 |
Other | 692 | 281 |
Changes in operating assets and liabilities: | ' | ' |
Decrease (increase) in accounts receivable, net | 2,661 | -13,231 |
Increase in inventory, net | -13,614 | -8,519 |
Increase in prepaid expenses and other current assets | -4,701 | -4,702 |
Decrease (increase) in income taxes refundable | 41 | -15 |
Increase in accounts payable | 7,383 | 1,095 |
(Decrease) increase in accrued expenses and other current liabilities | -5,097 | 13,037 |
Increase in other long-term liabilities | 1,761 | 1,148 |
Net cash provided by operating activities | 35,666 | 43,189 |
Cash flows used in investing activities: | ' | ' |
Cash paid for property and equipment | -30,422 | -40,312 |
Acquisition of supermarkets | ' | -5,995 |
Net cash provided by (used in) investing activities | -30,422 | -46,307 |
Cash flows (used in) provided by financing activities: | ' | ' |
Borrowings on 2017 ABL Facility | 315,600 | 241,300 |
Repayments on 2017 ABL Facility | -323,800 | -228,000 |
Proceeds from sale leaseback financing transactions | 25,436 | ' |
Dividends to Tops MBO Corporation | -12,571 | ' |
Principal payments on capital leases | -6,947 | -11,275 |
Repayments of long-term debt borrowings | -3,307 | -227 |
Deferred financing costs paid | -637 | -8,154 |
Change in bank overdraft position | 98 | 47 |
Proceeds from long-term debt borrowings | ' | 148,500 |
Dividend to former shareholders | ' | -141,920 |
Proceeds from stock option exercises | ' | 227 |
Net cash (used in) provided by financing activities | -6,128 | 498 |
Net decrease in cash and cash equivalents | -884 | -2,620 |
Cash and cash equivalents - beginning of period | 29,913 | 32,422 |
Cash and cash equivalents - end of period | $29,029 | $29,802 |
The_Company_Basis_of_Presentat
The Company, Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended | ||||||||||||||||||||||||||||||||||||
Oct. 04, 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 with supermarkets in Upstate New York, Northern Pennsylvania and Vermont. As of October 4, 2014, the Company operated 158 supermarkets under the banners of Tops and Orchard Fresh, with an additional five supermarkets operated by franchisees. 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 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 (together with the transactions contemplated by the Purchase and Sale Agreement, the “Management Purchase”). Tops MBO Co is owned and controlled by current and former members of management. The Management Purchase closed effective December 1, 2013. The consummation of the Management Purchase was the result of arms’ length negotiations. Prior to the Management Purchase, members of management owned approximately 7% of the outstanding common stock in Holding II, with MSPE and other private funds and individuals owning the remaining common stock. As a result of the Management Purchase, through their ownership of Tops MBO Co and through direct ownership of six shares of Holding II, current and former members of management now beneficially own all of the outstanding common stock 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” accounting resulted in a new basis of accounting in which the total cost of the Management Purchase was allocated to the assets acquired and liabilities assumed using estimates of fair values based on a preliminary allocation of the purchase price. Accordingly, these condensed consolidated financial statements refer to the Company in the period prior to the acquisition as “Predecessor” and in the period subsequent to the acquisition as “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 assets and results of operations of Tops MBO Co. Tops MBO Co’s assets consist solely of its investment in Holding II. Tops MBO Co has no operations other than as the equity owner of Holding II. | |||||||||||||||||||||||||||||||||||||
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 contained 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 30. 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 12-week and 40-week periods ended October 4, 2014 and October 5, 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 October 4, 2014, 76 corporate supermarkets offered pharmacy services and 51 corporate fuel centers were in operation. 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): | |||||||||||||||||||||||||||||||||||||
12-week periods ended | 40-week periods ended | ||||||||||||||||||||||||||||||||||||
October 4, 2014 | October 5, 2013 | October 4, 2014 | October 5, 2013 | ||||||||||||||||||||||||||||||||||
(Successor) | (Predecessor) | (Successor) | (Predecessor) | ||||||||||||||||||||||||||||||||||
% of | % of | % of | % of | ||||||||||||||||||||||||||||||||||
Amount | Total | Amount | Total | Amount | Total | Amount | Total | ||||||||||||||||||||||||||||||
Non-perishables(1) | $ | 322,403 | 55.5 | % | $ | 323,196 | 56.5 | % | $ | 1,067,793 | 55.2 | % | $ | 1,076,389 | 56.4 | % | |||||||||||||||||||||
Perishables(2) | 159,968 | 27.5 | % | 155,914 | 27.2 | % | 540,835 | 28 | % | 525,988 | 27.5 | % | |||||||||||||||||||||||||
Fuel | 54,559 | 9.4 | % | 52,200 | 9.1 | % | 180,846 | 9.3 | % | 171,870 | 9 | % | |||||||||||||||||||||||||
Pharmacy | 38,707 | 6.7 | % | 36,982 | 6.5 | % | 126,986 | 6.6 | % | 121,394 | 6.4 | % | |||||||||||||||||||||||||
Other(3) | 5,104 | 0.9 | % | 4,162 | 0.7 | % | 17,020 | 0.9 | % | 13,897 | 0.7 | % | |||||||||||||||||||||||||
$ | 580,741 | 100 | % | $ | 572,454 | 100 | % | $ | 1,933,480 | 100 | % | $ | 1,909,538 | 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 October 4, 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): | |||||||||||||||||||||||||||||||||||||
October 4, 2014 | December 28, 2013 | ||||||||||||||||||||||||||||||||||||
Carrying value of long-term debt: | |||||||||||||||||||||||||||||||||||||
Current portion of long-term debt | $ | 1,960 | $ | 2,309 | |||||||||||||||||||||||||||||||||
Long-term debt | 659,173 | 664,186 | |||||||||||||||||||||||||||||||||||
Total carrying value of long-term debt | 661,133 | 666,495 | |||||||||||||||||||||||||||||||||||
Fair value of long-term debt | 688,881 | 719,861 | |||||||||||||||||||||||||||||||||||
Excess of fair value over carrying value | $ | 27,748 | $ | 53,366 | |||||||||||||||||||||||||||||||||
The fair value of the Holding I Notes and Holding II Notes (see Note 6), which are included in long-term debt, was based on quoted market prices, a Level 2 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 October 4, 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 | 9 Months Ended | ||||||||||||
Oct. 04, 2014 | |||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||
Business Acquisition | ' | ||||||||||||
2. BUSINESS ACQUISITION | |||||||||||||
On December 1, 2013, the Management Purchase was consummated. As a result of the Management Purchase, primarily through their ownership of Tops MBO Co, current and former members of management now beneficially own all of the outstanding common stock 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 in connection with the Management Purchase. | |||||||||||||
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 and revenue projections attributed to the tradename. The discount rates applied to the value of intangible assets ranged 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 closing 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 IRC Section 382 calculation indicates that the change in ownership will not impact the Company’s ability to use certain tax attributes, including NOLs. | |||||||||||||
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 $88.4 million related to acquisition accounting adjustments have been established as of the closing 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, and adjustments made to the estimated fair values of these assets and liabilities (dollars in thousands): | |||||||||||||
Initial | Adjustments | Revised | |||||||||||
Estimate | Estimate | ||||||||||||
Assets acquired: | |||||||||||||
Cash | $ | 25,149 | $ | — | $ | 25,149 | |||||||
Accounts receivable | 66,244 | — | 66,244 | ||||||||||
Inventory | 149,911 | — | 149,911 | ||||||||||
Prepaid expenses | 14,905 | — | 14,905 | ||||||||||
Income taxes refundable | 116 | — | 116 | ||||||||||
Deferred tax assets | 1,122 | — | 1,122 | ||||||||||
Property and equipment | 385,811 | 1,610 | 387,421 | ||||||||||
Goodwill | 217,406 | (3,116 | ) | 214,290 | |||||||||
Intangible assets | 194,300 | 1,500 | 195,800 | ||||||||||
Other assets | 19,456 | — | 19,456 | ||||||||||
Total assets acquired | 1,074,420 | (6 | ) | 1,074,414 | |||||||||
Liabilities assumed: | |||||||||||||
Accounts payable | 81,588 | — | 81,588 | ||||||||||
Accrued expenses and other current liabilities | 113,544 | — | 113,544 | ||||||||||
Other long-term liabilities | 31,196 | — | 31,196 | ||||||||||
Capital lease obligations | 124,149 | (2,050 | ) | 122,099 | |||||||||
Long-term debt | 654,177 | — | 654,177 | ||||||||||
Deferred tax liabilities | 48,906 | 2,044 | 50,950 | ||||||||||
Total liabilities assumed | 1,053,560 | (6 | ) | 1,053,554 | |||||||||
Acquisition price | $ | 20,860 | $ | — | $ | 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. | |||||||||||||
Previously reported results have been retroactively adjusted to reflect revised useful life estimates for property and equipment and intangible assets revalued in connection with the Management Purchase. These revised estimates resulted in reductions of depreciation and amortization expense of $4.5 million and $1.3 million in the 28-week period ended July 12, 2014 and the 4-week period ended December 28, 2013 (“Fiscal 2013 Successor Period”), respectively. These depreciation expense adjustments resulted in related changes of income tax benefit (expense) of $0.9 million and $(0.5) million in the 28-week period ended July 12, 2014 and the Fiscal 2013 Successor Period, respectively. | |||||||||||||
The following table summarizes the Company’s unaudited pro forma operating results for the 40-week period ended October 5, 2013, giving effect to the Management Purchase as if it occurred on December 30, 2012 (dollars in thousands): | |||||||||||||
Net sales | $ | 1,909,538 | |||||||||||
Operating income | 28,672 | ||||||||||||
Net loss | (25,470 | ) | |||||||||||
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 40-week period ended October 5, 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 periods 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 | 9 Months Ended | ||||||||||||||||
Oct. 04, 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 40-week period ended October 4, 2014 (dollars in thousands): | |||||||||||||||||
Balance – December 28, 2013 | $ | 214,290 | |||||||||||||||
Balance – October 4, 2014 | $ | 214,290 | |||||||||||||||
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 trigger events were present during the 12-week and 40-week periods ended October 4, 2014 and October 5, 2013. | |||||||||||||||||
Intangible assets, net of accumulated amortization, consist of the following (dollars in thousands): | |||||||||||||||||
October 4, 2014 | Gross | Accumulated | Net | Weighted | |||||||||||||
Carrying | Amortization | Carrying | Average | ||||||||||||||
Amount | Amount | Amortization | |||||||||||||||
Period | |||||||||||||||||
Tradename – indefinite | $ | 131,000 | $ | — | $ | 131,000 | Indefinite life | ||||||||||
Customer relationships | 29,900 | (6,394 | ) | 23,506 | 14 | ||||||||||||
Favorable lease rights | 21,600 | (2,569 | ) | 19,031 | 9 | ||||||||||||
Franchise agreements | 13,300 | (1,663 | ) | 11,637 | 14 | ||||||||||||
$ | 195,800 | $ | (10,626 | ) | $ | 185,174 | 12.4 | ||||||||||
December 28, 2013 | Gross | Accumulated | Net | ||||||||||||||
Carrying | Amortization | Carrying | |||||||||||||||
Amount | Amount | ||||||||||||||||
Tradename – indefinite | $ | 131,000 | $ | — | $ | 131,000 | |||||||||||
Customer relationships | 29,900 | (598 | ) | 29,302 | |||||||||||||
Favorable lease rights | 21,600 | (233 | ) | 21,367 | |||||||||||||
Franchise agreements | 13,300 | (160 | ) | 13,140 | |||||||||||||
$ | 195,800 | $ | (991 | ) | $ | 194,809 | |||||||||||
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 indicators were present during the 12-week and 40-week periods ended October 4, 2014 and October 5, 2013. | |||||||||||||||||
During the 12-week periods ended October 4, 2014 and October 5, 2013, amortization expense related to intangible assets was $2.9 million and $1.9 million, respectively. During the 40-week periods ended October 4, 2014 and October 5, 2013, amortization expense related to intangible assets was $9.6 million and $6.4 million, respectively. This 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 12-week periods ended October 4, 2014 and October 5, 2013 includes $0.1 million and $0.3 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. During the 40-week periods ended October 4, 2014 and October 5, 2013, depreciation and amortization in the condensed consolidated statements of comprehensive loss includes $0.3 million and $1.2 million, respectively, of contra-expense related to the amortization of unfavorable lease rights. Expected future amortization of these unfavorable lease rights is contra-expense of $0.1 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 October 4, 2014, expected future amortization of intangible assets is as follows (dollars in thousands): | |||||||||||||||||
2014 (remaining period) | $ | 2,891 | |||||||||||||||
2015 | 10,984 | ||||||||||||||||
2016 | 7,930 | ||||||||||||||||
2017 | 6,740 | ||||||||||||||||
2018 | 5,747 | ||||||||||||||||
Thereafter | 19,882 |
Accrued_Expenses_and_Other_Cur
Accrued Expenses and Other Current Liabilities | 9 Months Ended | ||||||||
Oct. 04, 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): | |||||||||
October 4, 2014 | December 28, 2013 | ||||||||
Interest payable | $ | 16,679 | $ | 2,272 | |||||
Wages, taxes and benefits | 16,214 | 18,391 | |||||||
Lottery | 11,282 | 10,519 | |||||||
Union medical, pension and 401(k) | 9,224 | 4,589 | |||||||
Self-insurance reserves | 6,075 | 6,033 | |||||||
Professional and legal fees | 4,043 | 18,854 | |||||||
Money orders | 4,037 | 1,456 | |||||||
Sales and use tax | 3,224 | 6,279 | |||||||
Gift cards | 3,101 | 7,312 | |||||||
Property and equipment expenditures | 2,720 | 4,285 | |||||||
Utilities | 2,295 | 2,714 | |||||||
Repairs and maintenance | 2,002 | 2,539 | |||||||
Other | 10,065 | 12,988 | |||||||
$ | 90,961 | $ | 98,231 | ||||||
The decrease in accrued professional and legal fees as of October 4, 2014 compared with December 28, 2013 is largely due to $15.2 million of transaction fees incurred in the Management Purchase that were accrued as of December 28, 2013 and paid during the 40-week period ended October 4, 2014. |
Capital_Lease_Obligations
Capital Lease Obligations | 9 Months Ended | ||||
Oct. 04, 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 2035, 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 October 4, 2014, future minimum lease rental payments applicable to non-cancelable capital lease obligations were as follows (dollars in thousands): | |||||
2014 (remaining period) | $ | 6,946 | |||
2015 | 30,274 | ||||
2016 | 28,999 | ||||
2017 | 25,865 | ||||
2018 | 22,655 | ||||
Thereafter | 114,631 | ||||
Total minimum lease payments | 229,370 | ||||
Less amounts representing interest | (153,578 | ) | |||
Present value of net minimum lease payments | 75,792 | ||||
Less current obligations | (8,362 | ) | |||
Long-term cash obligations | 67,430 | ||||
Non-cash obligations | 71,012 | ||||
Total long-term capital lease obligations | $ | 138,442 | |||
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. These transactions include the sale-leaseback of nine properties for cash proceeds of $12.6 million and $25.4 million during the 12-week and 40-week periods ended October 4, 2014, respectively. These transactions have been classified as financing transactions in accordance with ASC Topic 840, “Leases,” due to the existence of forms of continuing involvement. | |||||
Under the financing method, the assets remain on the 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 net book 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. 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 capital lease obligations will be removed from the consolidated balance sheet, with no underlying cash payments. These capital lease obligations are reflected as non-cash obligations in the preceding table. |
Debt
Debt | 9 Months Ended | ||||||||
Oct. 04, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt | ' | ||||||||
6. DEBT | |||||||||
Long-term debt is comprised of the following (dollars in thousands): | |||||||||
October 4, 2014 | December 28, 2013 | ||||||||
Holding I Notes | $ | 460,000 | $ | 460,000 | |||||
Holding II Notes | 150,000 | 150,000 | |||||||
Discount on Holding II Notes | (1,160 | ) | (1,353 | ) | |||||
2017 ABL Facility | 46,600 | 54,800 | |||||||
Other loans | 5,693 | 2,604 | |||||||
Mortgage note payable | — | 444 | |||||||
Total debt | 661,133 | 666,495 | |||||||
Current portion | (1,960 | ) | (2,309 | ) | |||||
Total long-term debt | $ | 659,173 | $ | 664,186 | |||||
On May 15, 2013, Holding II issued $150.0 million of unsecured senior notes, bearing annual 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. This interest would accrue at an annual 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 annual 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 and Tops Gift Card Company, 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 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 up to $50.0 million of additional borrowing capacity 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 and: (1) limit permitted acquisitions to 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 thereafter. The 2017 ABL Facility will mature on December 14, 2017. | |||||||||
As of October 4, 2014, the unused availability under the 2017 ABL Facility was $49.0 million, after giving effect to the borrowing base calculation, $22.3 million of letters of credit outstanding and $46.6 million borrowings outstanding. 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 LIBOR plus a margin of 150 to 200 basis points, determined based on levels of borrowing availability, or the prime rate plus a margin of 50 to 100 basis points, determined based on levels of borrowing availability. As of October 4, 2014 and December 28, 2013, the weighted average interest rates on borrowings under the 2017 ABL Facility were 2.26% 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 August 19, 2014, the 2017 ABL Facility was amended to reduce specified restrictions on the Company’s ability to make certain payments, including dividends. | |||||||||
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 bore cash interest of LIBOR plus a margin of 300 basis points, with six scheduled quarterly principal and interest payments that began March 31, 2014. Holding II and its subsidiaries were neither co-issuers nor guarantors of the MBO Co Loan, and none of the assets or stock of Holding II were pledged as collateral for the MBO Co Loan. Accordingly, the MBO Co Loan was not pushed down to the condensed consolidated financial statements of Holding II. The remaining principal balance on the MBO Co Loan, along with accrued and unpaid interest, was repaid in full on September 25, 2014. |
Income_Taxes
Income Taxes | 9 Months Ended | ||||||||||||||||||||
Oct. 04, 2014 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||
7. INCOME TAXES | |||||||||||||||||||||
Income tax benefit (expense) was as follows (dollars in thousands): | |||||||||||||||||||||
12-week periods ended | 40-week periods ended | ||||||||||||||||||||
October 4, 2014 | October 5, 2013 | October 4, 2014 | October 5, 2013 | ||||||||||||||||||
(Successor) | (Predecessor) | (Successor) | (Predecessor) | ||||||||||||||||||
Current | $ | (23 | ) | $ | (1 | ) | $ | (41 | ) | $ | (1 | ) | |||||||||
Deferred | 1,191 | (377 | ) | 4,182 | (1,182 | ) | |||||||||||||||
Total income tax benefit (expense) | $ | 1,168 | $ | (378 | ) | $ | 4,141 | $ | (1,183 | ) | |||||||||||
The income tax benefit for the 12-week period ended October 4, 2014 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 55.9%. The effective tax rate would have been 44.2% without the establishment of the valuation allowance. | |||||||||||||||||||||
The income tax expense for the 12-week period ended October 5, 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 158.8%. The effective tax rate would have been (1,826.4)% without the impact of adjustments to the valuation allowance. This unusual effective tax rate is attributable to the near break-even forecasted pre-tax (loss) income for fiscal 2013. | |||||||||||||||||||||
The income tax benefit for the 40-week period ended October 4, 2014 primarily reflects the loss before income taxes, net of the recognition of valuation allowance associated with the Company’s indefinite-lived tradename and goodwill deferred tax liabilities. The overall effective tax rate was 29.5%. The effective tax rate would have been 41.9% without the establishment of the valuation allowance. | |||||||||||||||||||||
The income tax expense for the 40-week period ended October 5, 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 (14.0)%. The effective tax rate would have been 41.9% without the impact of adjustments to the valuation allowance. |
Shareholders_Deficit_Equity
Shareholders' (Deficit) Equity | 9 Months Ended |
Oct. 04, 2014 | |
Equity [Abstract] | ' |
Shareholders' (Deficit) Equity | ' |
8. SHAREHOLDERS’ (DEFICIT) EQUITY | |
On March 31, 2014 and June 30, 2014, the Company paid dividends of $2.4 million and $2.3 million, respectively, to Tops MBO Co to fund the quarterly principal and interest payments under the MBO Co Loan. On September 25, 2014, the Company paid a dividend of $7.9 million to Tops MBO Co to fund the repayment of the remaining principal balance and accrued and unpaid interest on the MBO Co Loan. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 04, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
9. COMMITMENTS AND CONTINGENCIES | |
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 Wholesale Grocers, Inc. (“C&S”). Erie Logistics operates the Company’s warehouse distribution facilities located in Lancaster and Cheektowaga, New York and employs the warehouse and driver personnel at these facilities, all of whom are represented by Teamsters Local 264. Under its supply agreement with Tops Markets, C&S, through Erie Logistics, had operated these facilities 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” and thereafter through the date of this report, 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 12-week and 40-week periods ended October 4, 2014, these rejected contributions totaled $0.8 million and $3.1 million, respectively. 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, calculated to give effect to a limit on total withdrawal liability imposed by the Employee Retirement Income Security Act (“ERISA”), 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, the Company or C&S. During the pendency of the proceeding to contest the withdrawal determination, ERISA requires that conditional monthly payments of withdrawal liability be made, which began July 28, 2014. The monthly conditional payments of withdrawal liability are in addition to pension contributions the Company is required to make for the benefit of Erie Logistics’ associates under the collective bargaining agreements with Teamsters Local 264 which, as noted, the Fund has refused to accept. | |
On July 28, 2014, Teamsters Local 264 filed a grievance charging a violation of its collective bargaining agreements with the Company by reason of the Company’s failing to participate in the Fund. | |
Purchase Commitments | |
Effective December 22, 2013, the Company modified its existing supply agreement with C&S whereby Tops Markets resumed warehousing and transportation functions while C&S continued 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 the Company’s 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 2012. 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. | |
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 at 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 October 4, 2014 or December 28, 2013. | |
Collective Bargaining Agreements | |
The Company employs approximately 15,100 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. The Company is a party to five collective bargaining agreements with Local One expiring between October 2015 and July 2017. 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 a party to three collective bargaining agreements with Teamsters Local 264 expiring in August 2019. | |
Legal Proceedings | |
Except as otherwise disclosed in this note, 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 October 4, 2014 or December 28, 2013. |
Guarantor_Financial_Statements
Guarantor Financial Statements | 9 Months Ended | ||||||||||||||||||||||||
Oct. 04, 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 and Tops PT, LLC (the “Guarantor Subsidiaries”), 100% owned subsidiaries of Tops Markets. Holding II was established in May 2013, Tops Gift Card Company, LLC was established in October 2008, and Tops PT, LLC was established in January 2010. 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 October 4, 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 12-week and 40-week periods ended October 4, 2014 and October 5, 2013, and statements of cash flows for the 40-week periods ended October 4, 2014 and October 5, 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 | |||||||||||||||||||||||||
OCTOBER 4, 2014 | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Tops Holding | Tops Holding | Tops Markets, LLC | Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
II Corporation | LLC | Subsidiaries | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 28,110 | $ | 919 | $ | — | $ | 29,029 | |||||||||||||
Accounts receivable, net | — | — | 49,882 | 11,978 | — | 61,860 | |||||||||||||||||||
Intercompany receivables | — | — | 44,688 | 4,234 | (48,922 | ) | — | ||||||||||||||||||
Inventory, net | — | — | 115,688 | 37,374 | — | 153,062 | |||||||||||||||||||
Prepaid expenses and other current assets | — | — | 13,204 | 3,158 | — | 16,362 | |||||||||||||||||||
Income taxes refundable | — | — | 69 | — | — | 69 | |||||||||||||||||||
Current deferred tax assets | — | — | 6,129 | — | — | 6,129 | |||||||||||||||||||
Total current assets | — | — | 257,770 | 57,663 | (48,922 | ) | 266,511 | ||||||||||||||||||
Property and equipment, net | — | — | 324,072 | 62,403 | — | 386,475 | |||||||||||||||||||
Goodwill | — | — | 48,310 | 165,980 | — | 214,290 | |||||||||||||||||||
Intangible assets, net | — | — | 136,701 | 48,473 | — | 185,174 | |||||||||||||||||||
Other assets | 5,401 | — | 10,583 | 3,041 | (3,041 | ) | 15,984 | ||||||||||||||||||
Investment in subsidiaries | 144,596 | 150,296 | 209,634 | — | (504,526 | ) | — | ||||||||||||||||||
Total assets | $ | 149,997 | $ | 150,296 | $ | 987,070 | $ | 337,560 | $ | (556,489 | ) | $ | 1,068,434 | ||||||||||||
Liabilities and Shareholders’ (Deficit) Equity | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Accounts payable | $ | — | $ | — | $ | 68,047 | $ | 19,134 | $ | — | $ | 87,181 | |||||||||||||
Intercompany payables | — | 5,700 | 4,234 | 38,988 | (48,922 | ) | — | ||||||||||||||||||
Accrued expenses and other current liabilities | 4,010 | — | 68,286 | 18,665 | — | 90,961 | |||||||||||||||||||
Current portion of capital lease obligations | — | — | 8,234 | 128 | — | 8,362 | |||||||||||||||||||
Current portion of long-term debt | — | — | 1,929 | 31 | — | 1,960 | |||||||||||||||||||
Total current liabilities | 4,010 | 5,700 | 150,730 | 76,946 | (48,922 | ) | 188,464 | ||||||||||||||||||
Capital lease obligations | — | — | 120,958 | 17,484 | — | 138,442 | |||||||||||||||||||
Long-term debt | 148,840 | — | 512,826 | 548 | (3,041 | ) | 659,173 | ||||||||||||||||||
Other long-term liabilities | — | — | 28,729 | 5,877 | — | 34,606 | |||||||||||||||||||
Non-current deferred tax liabilities | — | — | 23,531 | 27,071 | — | 50,602 | |||||||||||||||||||
Total liabilities | 152,850 | 5,700 | 836,774 | 127,926 | (51,963 | ) | 1,071,287 | ||||||||||||||||||
Total shareholders’ (deficit) equity | (2,853 | ) | 144,596 | 150,296 | 209,634 | (504,526 | ) | (2,853 | ) | ||||||||||||||||
Total liabilities and shareholders’ (deficit) equity | $ | 149,997 | $ | 150,296 | $ | 987,070 | $ | 337,560 | $ | (556,489 | ) | $ | 1,068,434 | ||||||||||||
TOPS HOLDING II CORPORATION | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEET | |||||||||||||||||||||||||
DECEMBER 28, 2013 | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Tops Holding | Tops Holding | Tops Markets, LLC | Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
II Corporation | LLC | Subsidiaries | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 29,051 | $ | 862 | $ | — | $ | 29,913 | |||||||||||||
Accounts receivable, net | — | — | 52,453 | 12,068 | — | 64,521 | |||||||||||||||||||
Intercompany receivables | — | — | 78,971 | 6,093 | (85,064 | ) | — | ||||||||||||||||||
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 | — | — | 281,018 | 57,770 | (85,064 | ) | 253,724 | ||||||||||||||||||
Property and equipment, net | — | — | 320,210 | 68,266 | — | 388,476 | |||||||||||||||||||
Goodwill | — | — | 48,310 | 165,980 | — | 214,290 | |||||||||||||||||||
Intangible assets, net | — | — | 144,069 | 50,740 | — | 194,809 | |||||||||||||||||||
Other assets | 6,310 | — | 12,676 | 3,041 | (3,041 | ) | 18,986 | ||||||||||||||||||
Investment in subsidiaries | 161,902 | 167,602 | 201,452 | — | (530,956 | ) | — | ||||||||||||||||||
Total assets | $ | 168,212 | $ | 167,602 | $ | 1,007,735 | $ | 345,797 | $ | (619,061 | ) | $ | 1,070,285 | ||||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Accounts payable | $ | — | $ | — | $ | 62,972 | $ | 16,728 | $ | — | $ | 79,700 | |||||||||||||
Intercompany payables | — | 5,700 | 6,093 | 73,271 | (85,064 | ) | — | ||||||||||||||||||
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 | — | — | 2,278 | 31 | — | 2,309 | |||||||||||||||||||
Total current liabilities | 510 | 5,700 | 152,624 | 114,784 | (85,064 | ) | 188,554 | ||||||||||||||||||
Capital lease obligations | — | — | 109,695 | 2,541 | — | 112,236 | |||||||||||||||||||
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 | — | — | 33,077 | 21,707 | — | 54,784 | |||||||||||||||||||
Total liabilities | 149,157 | 5,700 | 840,133 | 144,345 | (88,105 | ) | 1,051,230 | ||||||||||||||||||
Total shareholders’ equity | 19,055 | 161,902 | 167,602 | 201,452 | (530,956 | ) | 19,055 | ||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 168,212 | $ | 167,602 | $ | 1,007,735 | $ | 345,797 | $ | (619,061 | ) | $ | 1,070,285 | ||||||||||||
TOPS HOLDING II CORPORATION | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS | |||||||||||||||||||||||||
FOR THE 12-WEEK PERIOD ENDED OCTOBER 4, 2014 | |||||||||||||||||||||||||
(Successor) | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Tops Holding | Tops Holding | Tops Markets, LLC | Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
II Corporation | LLC | Subsidiaries | |||||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 447,554 | $ | 133,393 | $ | (206 | ) | $ | 580,741 | ||||||||||||
Cost of goods sold | — | — | (315,332 | ) | (89,407 | ) | — | (404,739 | ) | ||||||||||||||||
Distribution costs | — | — | (8,442 | ) | (2,527 | ) | — | (10,969 | ) | ||||||||||||||||
Gross profit | — | — | 123,780 | 41,459 | (206 | ) | 165,033 | ||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||
Wages, salaries and benefits | — | — | (59,934 | ) | (20,371 | ) | — | (80,305 | ) | ||||||||||||||||
Selling and general expenses | — | — | (20,524 | ) | (7,153 | ) | 206 | (27,471 | ) | ||||||||||||||||
Administrative expenses | — | — | (12,568 | ) | (3,734 | ) | — | (16,302 | ) | ||||||||||||||||
Rent expense, net | — | — | (4,157 | ) | (2,076 | ) | — | (6,233 | ) | ||||||||||||||||
Depreciation and amortization | — | — | (8,836 | ) | (5,070 | ) | — | (13,906 | ) | ||||||||||||||||
Advertising | — | — | (3,281 | ) | (999 | ) | — | (4,280 | ) | ||||||||||||||||
Total operating expenses | — | — | (109,300 | ) | (39,403 | ) | 206 | (148,497 | ) | ||||||||||||||||
Operating income | — | — | 14,480 | 2,056 | — | 16,536 | |||||||||||||||||||
Interest expense, net | (3,329 | ) | — | (15,096 | ) | (200 | ) | — | (18,625 | ) | |||||||||||||||
Equity income from subsidiaries | 2,408 | 2,408 | 1,121 | — | (5,937 | ) | — | ||||||||||||||||||
(Loss) income before income taxes | (921 | ) | 2,408 | 505 | 1,856 | (5,937 | ) | (2,089 | ) | ||||||||||||||||
Income tax benefit (expense) | — | — | 1,903 | (735 | ) | — | 1,168 | ||||||||||||||||||
Net (loss) income | (921 | ) | 2,408 | 2,408 | 1,121 | (5,937 | ) | (921 | ) | ||||||||||||||||
Other comprehensive loss | (13 | ) | (13 | ) | (13 | ) | — | 26 | (13 | ) | |||||||||||||||
Comprehensive (loss) income | $ | (934 | ) | $ | 2,395 | $ | 2,395 | $ | 1,121 | $ | (5,911 | ) | $ | (934 | ) | ||||||||||
TOPS HOLDING II CORPORATION | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS | |||||||||||||||||||||||||
FOR THE 12-WEEK PERIOD ENDED OCTOBER 5, 2013 | |||||||||||||||||||||||||
(Predecessor) | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Tops Holding | Tops Holding | Tops Markets, LLC | Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
II Corporation | LLC | Subsidiaries | |||||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 440,270 | $ | 132,379 | $ | (195 | ) | $ | 572,454 | ||||||||||||
Cost of goods sold | — | — | (309,056 | ) | (87,853 | ) | — | (396,909 | ) | ||||||||||||||||
Distribution costs | — | — | (8,991 | ) | (3,153 | ) | — | (12,144 | ) | ||||||||||||||||
Gross profit | — | — | 122,223 | 41,373 | (195 | ) | 163,401 | ||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||
Wages, salaries and benefits | — | — | (58,688 | ) | (19,825 | ) | — | (78,513 | ) | ||||||||||||||||
Selling and general expenses | — | — | (20,392 | ) | (6,782 | ) | 195 | (26,979 | ) | ||||||||||||||||
Administrative expenses | — | (219 | ) | (12,000 | ) | (4,090 | ) | — | (16,309 | ) | |||||||||||||||
Rent expense, net | — | — | (3,700 | ) | (2,143 | ) | — | (5,843 | ) | ||||||||||||||||
Depreciation and amortization | — | — | (10,043 | ) | (2,780 | ) | — | (12,823 | ) | ||||||||||||||||
Advertising | — | — | (2,957 | ) | (874 | ) | — | (3,831 | ) | ||||||||||||||||
Impairment | — | — | (1,620 | ) | — | — | (1,620 | ) | |||||||||||||||||
Total operating expenses | — | (219 | ) | (109,400 | ) | (36,494 | ) | 195 | (145,918 | ) | |||||||||||||||
Operating (loss) income | — | (219 | ) | 12,823 | 4,879 | — | 17,483 | ||||||||||||||||||
Interest expense, net | (3,307 | ) | — | (13,894 | ) | (44 | ) | — | (17,245 | ) | |||||||||||||||
Equity income from subsidiaries | 3,167 | 3,386 | 2,921 | — | (9,474 | ) | — | ||||||||||||||||||
(Loss) income before income taxes | (140 | ) | 3,167 | 1,850 | 4,835 | (9,474 | ) | 238 | |||||||||||||||||
Income tax benefit (expense) | — | — | 1,536 | (1,914 | ) | — | (378 | ) | |||||||||||||||||
Net (loss) income | (140 | ) | 3,167 | 3,386 | 2,921 | (9,474 | ) | (140 | ) | ||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | |||||||||||||||||||
Comprehensive (loss) income | $ | (140 | ) | $ | 3,167 | $ | 3,386 | $ | 2,921 | $ | (9,474 | ) | $ | (140 | ) | ||||||||||
TOPS HOLDING II CORPORATION | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS | |||||||||||||||||||||||||
FOR THE 40-WEEK PERIOD ENDED OCTOBER 4, 2014 | |||||||||||||||||||||||||
(Successor) | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Tops Holding | Tops Holding | Tops Markets, LLC | Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
II Corporation | LLC | Subsidiaries | |||||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 1,491,543 | $ | 442,739 | $ | (802 | ) | $ | 1,933,480 | ||||||||||||
Cost of goods sold | — | — | (1,053,960 | ) | (295,395 | ) | — | (1,349,355 | ) | ||||||||||||||||
Distribution costs | — | — | (29,166 | ) | (8,635 | ) | — | (37,801 | ) | ||||||||||||||||
Gross profit | — | — | 408,417 | 138,709 | (802 | ) | 546,324 | ||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||
Wages, salaries and benefits | — | — | (199,756 | ) | (67,749 | ) | — | (267,505 | ) | ||||||||||||||||
Selling and general expenses | — | — | (72,503 | ) | (25,237 | ) | 802 | (96,938 | ) | ||||||||||||||||
Administrative expenses | — | — | (39,339 | ) | (11,946 | ) | — | (51,285 | ) | ||||||||||||||||
Rent expense, net | — | — | (13,432 | ) | (7,074 | ) | — | (20,506 | ) | ||||||||||||||||
Depreciation and amortization | — | — | (36,193 | ) | (8,858 | ) | — | (45,051 | ) | ||||||||||||||||
Advertising | — | — | (12,295 | ) | (3,747 | ) | — | (16,042 | ) | ||||||||||||||||
Total operating expenses | — | — | (373,518 | ) | (124,611 | ) | 802 | (497,327 | ) | ||||||||||||||||
Operating income | — | — | 34,899 | 14,098 | — | 48,997 | |||||||||||||||||||
Interest expense, net | (11,164 | ) | — | (51,307 | ) | (552 | ) | — | (63,023 | ) | |||||||||||||||
Equity (loss) income from subsidiaries | 1,279 | 1,279 | 8,182 | — | (10,740 | ) | — | ||||||||||||||||||
(Loss) income before income taxes | (9,885 | ) | 1,279 | (8,226 | ) | 13,546 | (10,740 | ) | (14,026 | ) | |||||||||||||||
Income tax benefit (expense) | — | — | 9,505 | (5,364 | ) | — | 4,141 | ||||||||||||||||||
Net (loss) income | (9,885 | ) | 1,279 | 1,279 | 8,182 | (10,740 | ) | (9,885 | ) | ||||||||||||||||
Other comprehensive income | 435 | 435 | 435 | — | (870 | ) | 435 | ||||||||||||||||||
Comprehensive (loss) income | $ | (9,450 | ) | $ | 1,714 | $ | 1,714 | $ | 8,182 | $ | (11,610 | ) | $ | (9,450 | ) | ||||||||||
TOPS HOLDING II CORPORATION | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS | |||||||||||||||||||||||||
FOR THE 40-WEEK PERIOD ENDED OCTOBER 5, 2013 | |||||||||||||||||||||||||
(Predecessor) | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Tops Holding | Tops Holding | Tops Markets, LLC | Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
II Corporation | LLC | Subsidiaries | |||||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 1,469,913 | $ | 440,401 | $ | (776 | ) | $ | 1,909,538 | ||||||||||||
Cost of goods sold | — | — | (1,036,550 | ) | (292,444 | ) | — | (1,328,994 | ) | ||||||||||||||||
Distribution costs | — | — | (28,455 | ) | (9,969 | ) | — | (38,424 | ) | ||||||||||||||||
Gross profit | — | — | 404,908 | 137,988 | (776 | ) | 542,120 | ||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||
Wages, salaries and benefits | — | — | (196,391 | ) | (66,954 | ) | — | (263,345 | ) | ||||||||||||||||
Selling and general expenses | — | — | (68,410 | ) | (22,527 | ) | 776 | (90,161 | ) | ||||||||||||||||
Administrative expenses | (10,893 | ) | (731 | ) | (40,392 | ) | (13,619 | ) | — | (65,635 | ) | ||||||||||||||
Rent expense, net | — | — | (11,676 | ) | (7,043 | ) | — | (18,719 | ) | ||||||||||||||||
Depreciation and amortization | — | — | (33,478 | ) | (9,397 | ) | — | (42,875 | ) | ||||||||||||||||
Advertising | — | — | (11,747 | ) | (3,533 | ) | — | (15,280 | ) | ||||||||||||||||
Impairment | — | — | (1620 | ) | — | — | (1,620 | ) | |||||||||||||||||
Total operating expenses | (10,893 | ) | (731 | ) | (363,714 | ) | (123,073 | ) | 776 | (497,635 | ) | ||||||||||||||
Operating (loss) income | (10,893 | ) | (731 | ) | 41,194 | 14,915 | — | 44,485 | |||||||||||||||||
Interest expense, net | (5,708 | ) | — | (47,125 | ) | (126 | ) | — | (52,959 | ) | |||||||||||||||
Equity income from subsidiaries | 6,944 | 7,675 | 8,933 | — | (23,552 | ) | — | ||||||||||||||||||
(Loss) income before income taxes | (9,657 | ) | 6,944 | 3,002 | 14,789 | (23,552 | ) | (8,474 | ) | ||||||||||||||||
Income tax benefit (expense) | — | — | 4,673 | (5,856 | ) | — | (1,183 | ) | |||||||||||||||||
Net (loss) income | (9,657 | ) | 6,944 | 7,675 | 8,933 | (23,552 | ) | (9,657 | ) | ||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | |||||||||||||||||||
Comprehensive (loss) income | $ | (9,657 | ) | $ | 6,944 | $ | 7,675 | $ | 8,933 | $ | (23,552 | ) | $ | (9,657 | ) | ||||||||||
TOPS HOLDING II CORPORATION | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||
FOR THE 40-WEEK PERIOD ENDED OCTOBER 4, 2014 | |||||||||||||||||||||||||
(Successor) | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Tops Holding | Tops Holding | Tops Markets, LLC | Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
II Corporation | LLC | Subsidiaries | |||||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (6,563 | ) | $ | — | $ | 22,078 | $ | 20,151 | $ | — | $ | 35,666 | ||||||||||||
Cash flows provided by (used in) investing activities: | |||||||||||||||||||||||||
Cash paid for property and equipment | — | — | (28,061 | ) | (2,361 | ) | — | (30,422 | ) | ||||||||||||||||
Change in intercompany receivables position | — | — | 34,283 | 1,859 | (36,142 | ) | — | ||||||||||||||||||
Net cash provided by (used in) investing activities | — | — | 6,222 | (502 | ) | (36,142 | ) | (30,422 | ) | ||||||||||||||||
Cash flows provided by (used in) financing activities: | |||||||||||||||||||||||||
Dividends | (12,571 | ) | (19,134 | ) | (19,134 | ) | — | 38,268 | (12,571 | ) | |||||||||||||||
Capital contributions | 19,134 | 19,134 | — | — | (38,268 | ) | — | ||||||||||||||||||
Borrowings on 2017 ABL Facility | — | — | 315,600 | — | — | 315,600 | |||||||||||||||||||
Repayments on 2017 ABL Facility | — | — | (323,800 | ) | — | — | (323,800 | ) | |||||||||||||||||
Proceeds from sale leaseback financing transactions | — | — | 10,360 | 15,076 | — | 25,436 | |||||||||||||||||||
Principal payments on capital leases | — | — | (6,586 | ) | (361 | ) | — | (6,947 | ) | ||||||||||||||||
Repayments of long-term debt borrowings | — | — | (3,283 | ) | (24 | ) | — | (3,307 | ) | ||||||||||||||||
Deferred financing costs paid | — | — | (637 | ) | — | — | (637 | ) | |||||||||||||||||
Change in bank overdraft position | — | — | 98 | — | — | 98 | |||||||||||||||||||
Change in intercompany payables position | — | — | (1,859 | ) | (34,283 | ) | 36,142 | — | |||||||||||||||||
Net cash provided by (used in) financing activities | 6,563 | — | (29,241 | ) | (19,592 | ) | 36,142 | (6,128 | ) | ||||||||||||||||
Net (decrease) increase in cash and cash equivalents | — | (941 | ) | 57 | — | (884 | ) | ||||||||||||||||||
Cash and cash equivalents – beginning of period | — | 29,051 | 862 | — | 29,913 | ||||||||||||||||||||
Cash and cash equivalents – end of period | $ | — | $ | — | $ | 28,110 | $ | 919 | $ | — | $ | 29,029 | |||||||||||||
TOPS HOLDING II CORPORATION | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||
FOR THE 40-WEEK PERIOD ENDED OCTOBER 5, 2013 | |||||||||||||||||||||||||
(Predecessor) | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Tops Holding | Tops Holding | Tops Markets, LLC | Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
II Corporation | LLC | Subsidiaries | |||||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | — | $ | (731 | ) | $ | 25,919 | $ | 18,001 | $ | — | $ | 43,189 | ||||||||||||
Cash flows used in investing activities: | |||||||||||||||||||||||||
Cash paid for property and equipment | — | — | (37,489 | ) | (2,823 | ) | — | (40,312 | ) | ||||||||||||||||
Acquisition of independent supermarkets | — | — | (5,995 | ) | — | — | (5,995 | ) | |||||||||||||||||
Change in intercompany receivables position | — | — | (731 | ) | (14,879 | ) | 15,610 | — | |||||||||||||||||
Net cash used in investing activities | — | — | (44,215 | ) | (17,702 | ) | 15,610 | (46,307 | ) | ||||||||||||||||
Cash flows provided by (used in) financing activities: | |||||||||||||||||||||||||
Proceeds from long-term debt borrowings | 148,500 | — | — | — | — | 148,500 | |||||||||||||||||||
Dividend to shareholders | (141,920 | ) | — | — | — | — | (141,920 | ) | |||||||||||||||||
Stock option exercises | 227 | — | — | — | — | 227 | |||||||||||||||||||
Change in intercompany payables position | — | 731 | 14,879 | — | (15,610 | ) | — | ||||||||||||||||||
Borrowings on 2017 ABL Facility | — | — | 241,300 | — | — | 241,300 | |||||||||||||||||||
Repayments on 2017 ABL Facility | — | — | (228,000 | ) | — | — | (228,000 | ) | |||||||||||||||||
Principal payments on capital leases | — | — | (10,971 | ) | (304 | ) | — | (11,275 | ) | ||||||||||||||||
Deferred financing costs paid | — | — | (8,154 | ) | — | — | (8,154 | ) | |||||||||||||||||
Repayments of long-term debt borrowings | — | — | (227 | ) | — | — | (227 | ) | |||||||||||||||||
Change in bank overdraft position | — | — | 47 | — | — | 47 | |||||||||||||||||||
Net cash provided by (used in) financing activities | 6,807 | 731 | 8,874 | (304 | ) | (15,610 | ) | 498 | |||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 6,807 | — | (9,422 | ) | (5 | ) | — | (2,620 | ) | ||||||||||||||||
Cash and cash equivalents – beginning of period | — | — | 31,586 | 836 | — | 32,422 | |||||||||||||||||||
Cash and cash equivalents – end of period | $ | 6,807 | $ | — | $ | 22,164 | $ | 831 | $ | — | $ | 29,802 | |||||||||||||
The_Company_Basis_of_Presentat1
The Company, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||
Oct. 04, 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 with supermarkets in Upstate New York, Northern Pennsylvania and Vermont. As of October 4, 2014, the Company operated 158 supermarkets under the banners of Tops and Orchard Fresh, with an additional five supermarkets operated by franchisees. 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 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 (together with the transactions contemplated by the Purchase and Sale Agreement, the “Management Purchase”). Tops MBO Co is owned and controlled by current and former members of management. The Management Purchase closed effective December 1, 2013. The consummation of the Management Purchase was the result of arms’ length negotiations. Prior to the Management Purchase, members of management owned approximately 7% of the outstanding common stock in Holding II, with MSPE and other private funds and individuals owning the remaining common stock. As a result of the Management Purchase, through their ownership of Tops MBO Co and through direct ownership of six shares of Holding II, current and former members of management now beneficially own all of the outstanding common stock 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” accounting resulted in a new basis of accounting in which the total cost of the Management Purchase was allocated to the assets acquired and liabilities assumed using estimates of fair values based on a preliminary allocation of the purchase price. Accordingly, these condensed consolidated financial statements refer to the Company in the period prior to the acquisition as “Predecessor” and in the period subsequent to the acquisition as “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 assets and results of operations of Tops MBO Co. Tops MBO Co’s assets consist solely of its investment in Holding II. Tops MBO Co has no operations other than as the equity owner of Holding II. | |||||||||||||||||||||||||||||||||||||
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 contained 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 30. 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 12-week and 40-week periods ended October 4, 2014 and October 5, 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 October 4, 2014, 76 corporate supermarkets offered pharmacy services and 51 corporate fuel centers were in operation. 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): | |||||||||||||||||||||||||||||||||||||
12-week periods ended | 40-week periods ended | ||||||||||||||||||||||||||||||||||||
October 4, 2014 | October 5, 2013 | October 4, 2014 | October 5, 2013 | ||||||||||||||||||||||||||||||||||
(Successor) | (Predecessor) | (Successor) | (Predecessor) | ||||||||||||||||||||||||||||||||||
% of | % of | % of | % of | ||||||||||||||||||||||||||||||||||
Amount | Total | Amount | Total | Amount | Total | Amount | Total | ||||||||||||||||||||||||||||||
Non-perishables(1) | $ | 322,403 | 55.5 | % | $ | 323,196 | 56.5 | % | $ | 1,067,793 | 55.2 | % | $ | 1,076,389 | 56.4 | % | |||||||||||||||||||||
Perishables(2) | 159,968 | 27.5 | % | 155,914 | 27.2 | % | 540,835 | 28 | % | 525,988 | 27.5 | % | |||||||||||||||||||||||||
Fuel | 54,559 | 9.4 | % | 52,200 | 9.1 | % | 180,846 | 9.3 | % | 171,870 | 9 | % | |||||||||||||||||||||||||
Pharmacy | 38,707 | 6.7 | % | 36,982 | 6.5 | % | 126,986 | 6.6 | % | 121,394 | 6.4 | % | |||||||||||||||||||||||||
Other(3) | 5,104 | 0.9 | % | 4,162 | 0.7 | % | 17,020 | 0.9 | % | 13,897 | 0.7 | % | |||||||||||||||||||||||||
$ | 580,741 | 100 | % | $ | 572,454 | 100 | % | $ | 1,933,480 | 100 | % | $ | 1,909,538 | 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 October 4, 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): | |||||||||||||||||||||||||||||||||||||
October 4, 2014 | December 28, 2013 | ||||||||||||||||||||||||||||||||||||
Carrying value of long-term debt: | |||||||||||||||||||||||||||||||||||||
Current portion of long-term debt | $ | 1,960 | $ | 2,309 | |||||||||||||||||||||||||||||||||
Long-term debt | 659,173 | 664,186 | |||||||||||||||||||||||||||||||||||
Total carrying value of long-term debt | 661,133 | 666,495 | |||||||||||||||||||||||||||||||||||
Fair value of long-term debt | 688,881 | 719,861 | |||||||||||||||||||||||||||||||||||
Excess of fair value over carrying value | $ | 27,748 | $ | 53,366 | |||||||||||||||||||||||||||||||||
The fair value of the Holding I Notes and Holding II Notes (see Note 6), which are included in long-term debt, was based on quoted market prices, a Level 2 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 October 4, 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) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||
Oct. 04, 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): | |||||||||||||||||||||||||||||||||||||
12-week periods ended | 40-week periods ended | ||||||||||||||||||||||||||||||||||||
October 4, 2014 | October 5, 2013 | October 4, 2014 | October 5, 2013 | ||||||||||||||||||||||||||||||||||
(Successor) | (Predecessor) | (Successor) | (Predecessor) | ||||||||||||||||||||||||||||||||||
% of | % of | % of | % of | ||||||||||||||||||||||||||||||||||
Amount | Total | Amount | Total | Amount | Total | Amount | Total | ||||||||||||||||||||||||||||||
Non-perishables(1) | $ | 322,403 | 55.5 | % | $ | 323,196 | 56.5 | % | $ | 1,067,793 | 55.2 | % | $ | 1,076,389 | 56.4 | % | |||||||||||||||||||||
Perishables(2) | 159,968 | 27.5 | % | 155,914 | 27.2 | % | 540,835 | 28 | % | 525,988 | 27.5 | % | |||||||||||||||||||||||||
Fuel | 54,559 | 9.4 | % | 52,200 | 9.1 | % | 180,846 | 9.3 | % | 171,870 | 9 | % | |||||||||||||||||||||||||
Pharmacy | 38,707 | 6.7 | % | 36,982 | 6.5 | % | 126,986 | 6.6 | % | 121,394 | 6.4 | % | |||||||||||||||||||||||||
Other(3) | 5,104 | 0.9 | % | 4,162 | 0.7 | % | 17,020 | 0.9 | % | 13,897 | 0.7 | % | |||||||||||||||||||||||||
$ | 580,741 | 100 | % | $ | 572,454 | 100 | % | $ | 1,933,480 | 100 | % | $ | 1,909,538 | 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 October 4, 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): | |||||||||||||||||||||||||||||||||||||
October 4, 2014 | December 28, 2013 | ||||||||||||||||||||||||||||||||||||
Carrying value of long-term debt: | |||||||||||||||||||||||||||||||||||||
Current portion of long-term debt | $ | 1,960 | $ | 2,309 | |||||||||||||||||||||||||||||||||
Long-term debt | 659,173 | 664,186 | |||||||||||||||||||||||||||||||||||
Total carrying value of long-term debt | 661,133 | 666,495 | |||||||||||||||||||||||||||||||||||
Fair value of long-term debt | 688,881 | 719,861 | |||||||||||||||||||||||||||||||||||
Excess of fair value over carrying value | $ | 27,748 | $ | 53,366 | |||||||||||||||||||||||||||||||||
Business_Acquisition_Tables
Business Acquisition (Tables) (Management Purchase [Member]) | 9 Months Ended | ||||||||||||
Oct. 04, 2014 | |||||||||||||
Management Purchase [Member] | ' | ||||||||||||
Allocation of Purchase Price to Assets Acquired and Liabilities Assumed and Adjustments to Estimated Fair Values of Assets and Liabilities | ' | ||||||||||||
The following table summarizes the preliminary allocation of the purchase price to the assets acquired and liabilities assumed as of the transaction date, and adjustments made to the estimated fair values of these assets and liabilities (dollars in thousands): | |||||||||||||
Initial | Adjustments | Revised | |||||||||||
Estimate | Estimate | ||||||||||||
Assets acquired: | |||||||||||||
Cash | $ | 25,149 | $ | — | $ | 25,149 | |||||||
Accounts receivable | 66,244 | — | 66,244 | ||||||||||
Inventory | 149,911 | — | 149,911 | ||||||||||
Prepaid expenses | 14,905 | — | 14,905 | ||||||||||
Income taxes refundable | 116 | — | 116 | ||||||||||
Deferred tax assets | 1,122 | — | 1,122 | ||||||||||
Property and equipment | 385,811 | 1,610 | 387,421 | ||||||||||
Goodwill | 217,406 | (3,116 | ) | 214,290 | |||||||||
Intangible assets | 194,300 | 1,500 | 195,800 | ||||||||||
Other assets | 19,456 | — | 19,456 | ||||||||||
Total assets acquired | 1,074,420 | (6 | ) | 1,074,414 | |||||||||
Liabilities assumed: | |||||||||||||
Accounts payable | 81,588 | — | 81,588 | ||||||||||
Accrued expenses and other current liabilities | 113,544 | — | 113,544 | ||||||||||
Other long-term liabilities | 31,196 | — | 31,196 | ||||||||||
Capital lease obligations | 124,149 | (2,050 | ) | 122,099 | |||||||||
Long-term debt | 654,177 | — | 654,177 | ||||||||||
Deferred tax liabilities | 48,906 | 2,044 | 50,950 | ||||||||||
Total liabilities assumed | 1,053,560 | (6 | ) | 1,053,554 | |||||||||
Acquisition price | $ | 20,860 | $ | — | $ | 20,860 | |||||||
Unaudited Pro forma Financial Information | ' | ||||||||||||
The following table summarizes the Company’s unaudited pro forma operating results for the 40-week period ended October 5, 2013, giving effect to the Management Purchase as if it occurred on December 30, 2012 (dollars in thousands): | |||||||||||||
Net sales | $ | 1,909,538 | |||||||||||
Operating income | 28,672 | ||||||||||||
Net loss | (25,470 | ) |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets, Net (Tables) | 9 Months Ended | ||||||||||||||||
Oct. 04, 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 40-week period ended October 4, 2014 (dollars in thousands): | |||||||||||||||||
Balance – December 28, 2013 | $ | 214,290 | |||||||||||||||
Balance – October 4, 2014 | $ | 214,290 | |||||||||||||||
Summary of Intangible Assets, Net of Accumulated Amortization | ' | ||||||||||||||||
Intangible assets, net of accumulated amortization, consist of the following (dollars in thousands): | |||||||||||||||||
October 4, 2014 | Gross | Accumulated | Net | Weighted | |||||||||||||
Carrying | Amortization | Carrying | Average | ||||||||||||||
Amount | Amount | Amortization | |||||||||||||||
Period | |||||||||||||||||
Tradename – indefinite | $ | 131,000 | $ | — | $ | 131,000 | Indefinite life | ||||||||||
Customer relationships | 29,900 | (6,394 | ) | 23,506 | 14 | ||||||||||||
Favorable lease rights | 21,600 | (2,569 | ) | 19,031 | 9 | ||||||||||||
Franchise agreements | 13,300 | (1,663 | ) | 11,637 | 14 | ||||||||||||
$ | 195,800 | $ | (10,626 | ) | $ | 185,174 | 12.4 | ||||||||||
December 28, 2013 | Gross | Accumulated | Net | ||||||||||||||
Carrying | Amortization | Carrying | |||||||||||||||
Amount | Amount | ||||||||||||||||
Tradename – indefinite | $ | 131,000 | $ | — | $ | 131,000 | |||||||||||
Customer relationships | 29,900 | (598 | ) | 29,302 | |||||||||||||
Favorable lease rights | 21,600 | (233 | ) | 21,367 | |||||||||||||
Franchise agreements | 13,300 | (160 | ) | 13,140 | |||||||||||||
$ | 195,800 | $ | (991 | ) | $ | 194,809 | |||||||||||
Summary of Expected Future Amortization of Intangible Assets | ' | ||||||||||||||||
As of October 4, 2014, expected future amortization of intangible assets is as follows (dollars in thousands): | |||||||||||||||||
2014 (remaining period) | $ | 2,891 | |||||||||||||||
2015 | 10,984 | ||||||||||||||||
2016 | 7,930 | ||||||||||||||||
2017 | 6,740 | ||||||||||||||||
2018 | 5,747 | ||||||||||||||||
Thereafter | 19,882 |
Accrued_Expenses_and_Other_Cur1
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended | ||||||||
Oct. 04, 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): | |||||||||
October 4, 2014 | December 28, 2013 | ||||||||
Interest payable | $ | 16,679 | $ | 2,272 | |||||
Wages, taxes and benefits | 16,214 | 18,391 | |||||||
Lottery | 11,282 | 10,519 | |||||||
Union medical, pension and 401(k) | 9,224 | 4,589 | |||||||
Self-insurance reserves | 6,075 | 6,033 | |||||||
Professional and legal fees | 4,043 | 18,854 | |||||||
Money orders | 4,037 | 1,456 | |||||||
Sales and use tax | 3,224 | 6,279 | |||||||
Gift cards | 3,101 | 7,312 | |||||||
Property and equipment expenditures | 2,720 | 4,285 | |||||||
Utilities | 2,295 | 2,714 | |||||||
Repairs and maintenance | 2,002 | 2,539 | |||||||
Other | 10,065 | 12,988 | |||||||
$ | 90,961 | $ | 98,231 | ||||||
Capital_Lease_Obligations_Tabl
Capital Lease Obligations (Tables) | 9 Months Ended | ||||
Oct. 04, 2014 | |||||
Leases [Abstract] | ' | ||||
Schedule of Future Minimum Lease Rental Payments for Capital Lease Obligations | ' | ||||
As of October 4, 2014, future minimum lease rental payments applicable to non-cancelable capital lease obligations were as follows (dollars in thousands): | |||||
2014 (remaining period) | $ | 6,946 | |||
2015 | 30,274 | ||||
2016 | 28,999 | ||||
2017 | 25,865 | ||||
2018 | 22,655 | ||||
Thereafter | 114,631 | ||||
Total minimum lease payments | 229,370 | ||||
Less amounts representing interest | (153,578 | ) | |||
Present value of net minimum lease payments | 75,792 | ||||
Less current obligations | (8,362 | ) | |||
Long-term cash obligations | 67,430 | ||||
Non-cash obligations | 71,012 | ||||
Total long-term capital lease obligations | $ | 138,442 | |||
Debt_Tables
Debt (Tables) | 9 Months Ended | ||||||||
Oct. 04, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Summary of Long-term Debt | ' | ||||||||
Long-term debt is comprised of the following (dollars in thousands): | |||||||||
October 4, 2014 | December 28, 2013 | ||||||||
Holding I Notes | $ | 460,000 | $ | 460,000 | |||||
Holding II Notes | 150,000 | 150,000 | |||||||
Discount on Holding II Notes | (1,160 | ) | (1,353 | ) | |||||
2017 ABL Facility | 46,600 | 54,800 | |||||||
Other loans | 5,693 | 2,604 | |||||||
Mortgage note payable | — | 444 | |||||||
Total debt | 661,133 | 666,495 | |||||||
Current portion | (1,960 | ) | (2,309 | ) | |||||
Total long-term debt | $ | 659,173 | $ | 664,186 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | ||||||||||||||||||||
Oct. 04, 2014 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||||||
Summary of Income Tax Benefit (Expense) | ' | ||||||||||||||||||||
Income tax benefit (expense) was as follows (dollars in thousands): | |||||||||||||||||||||
12-week periods ended | 40-week periods ended | ||||||||||||||||||||
October 4, 2014 | October 5, 2013 | October 4, 2014 | October 5, 2013 | ||||||||||||||||||
(Successor) | (Predecessor) | (Successor) | (Predecessor) | ||||||||||||||||||
Current | $ | (23 | ) | $ | (1 | ) | $ | (41 | ) | $ | (1 | ) | |||||||||
Deferred | 1,191 | (377 | ) | 4,182 | (1,182 | ) | |||||||||||||||
Total income tax benefit (expense) | $ | 1,168 | $ | (378 | ) | $ | 4,141 | $ | (1,183 | ) | |||||||||||
Guarantor_Financial_Statements1
Guarantor Financial Statements (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Oct. 04, 2014 | |||||||||||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||||||||||
Guarantor Financial Statements - Condensed Consolidating Balance Sheet (Detail) | ' | ||||||||||||||||||||||||
TOPS HOLDING II CORPORATION | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEET | |||||||||||||||||||||||||
OCTOBER 4, 2014 | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Tops Holding | Tops Holding | Tops Markets, LLC | Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
II Corporation | LLC | Subsidiaries | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 28,110 | $ | 919 | $ | — | $ | 29,029 | |||||||||||||
Accounts receivable, net | — | — | 49,882 | 11,978 | — | 61,860 | |||||||||||||||||||
Intercompany receivables | — | — | 44,688 | 4,234 | (48,922 | ) | — | ||||||||||||||||||
Inventory, net | — | — | 115,688 | 37,374 | — | 153,062 | |||||||||||||||||||
Prepaid expenses and other current assets | — | — | 13,204 | 3,158 | — | 16,362 | |||||||||||||||||||
Income taxes refundable | — | — | 69 | — | — | 69 | |||||||||||||||||||
Current deferred tax assets | — | — | 6,129 | — | — | 6,129 | |||||||||||||||||||
Total current assets | — | — | 257,770 | 57,663 | (48,922 | ) | 266,511 | ||||||||||||||||||
Property and equipment, net | — | — | 324,072 | 62,403 | — | 386,475 | |||||||||||||||||||
Goodwill | — | — | 48,310 | 165,980 | — | 214,290 | |||||||||||||||||||
Intangible assets, net | — | — | 136,701 | 48,473 | — | 185,174 | |||||||||||||||||||
Other assets | 5,401 | — | 10,583 | 3,041 | (3,041 | ) | 15,984 | ||||||||||||||||||
Investment in subsidiaries | 144,596 | 150,296 | 209,634 | — | (504,526 | ) | — | ||||||||||||||||||
Total assets | $ | 149,997 | $ | 150,296 | $ | 987,070 | $ | 337,560 | $ | (556,489 | ) | $ | 1,068,434 | ||||||||||||
Liabilities and Shareholders’ (Deficit) Equity | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Accounts payable | $ | — | $ | — | $ | 68,047 | $ | 19,134 | $ | — | $ | 87,181 | |||||||||||||
Intercompany payables | — | 5,700 | 4,234 | 38,988 | (48,922 | ) | — | ||||||||||||||||||
Accrued expenses and other current liabilities | 4,010 | — | 68,286 | 18,665 | — | 90,961 | |||||||||||||||||||
Current portion of capital lease obligations | — | — | 8,234 | 128 | — | 8,362 | |||||||||||||||||||
Current portion of long-term debt | — | — | 1,929 | 31 | — | 1,960 | |||||||||||||||||||
Total current liabilities | 4,010 | 5,700 | 150,730 | 76,946 | (48,922 | ) | 188,464 | ||||||||||||||||||
Capital lease obligations | — | — | 120,958 | 17,484 | — | 138,442 | |||||||||||||||||||
Long-term debt | 148,840 | — | 512,826 | 548 | (3,041 | ) | 659,173 | ||||||||||||||||||
Other long-term liabilities | — | — | 28,729 | 5,877 | — | 34,606 | |||||||||||||||||||
Non-current deferred tax liabilities | — | — | 23,531 | 27,071 | — | 50,602 | |||||||||||||||||||
Total liabilities | 152,850 | 5,700 | 836,774 | 127,926 | (51,963 | ) | 1,071,287 | ||||||||||||||||||
Total shareholders’ (deficit) equity | (2,853 | ) | 144,596 | 150,296 | 209,634 | (504,526 | ) | (2,853 | ) | ||||||||||||||||
Total liabilities and shareholders’ (deficit) equity | $ | 149,997 | $ | 150,296 | $ | 987,070 | $ | 337,560 | $ | (556,489 | ) | $ | 1,068,434 | ||||||||||||
TOPS HOLDING II CORPORATION | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEET | |||||||||||||||||||||||||
DECEMBER 28, 2013 | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Tops Holding | Tops Holding | Tops Markets, LLC | Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
II Corporation | LLC | Subsidiaries | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 29,051 | $ | 862 | $ | — | $ | 29,913 | |||||||||||||
Accounts receivable, net | — | — | 52,453 | 12,068 | — | 64,521 | |||||||||||||||||||
Intercompany receivables | — | — | 78,971 | 6,093 | (85,064 | ) | — | ||||||||||||||||||
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 | — | — | 281,018 | 57,770 | (85,064 | ) | 253,724 | ||||||||||||||||||
Property and equipment, net | — | — | 320,210 | 68,266 | — | 388,476 | |||||||||||||||||||
Goodwill | — | — | 48,310 | 165,980 | — | 214,290 | |||||||||||||||||||
Intangible assets, net | — | — | 144,069 | 50,740 | — | 194,809 | |||||||||||||||||||
Other assets | 6,310 | — | 12,676 | 3,041 | (3,041 | ) | 18,986 | ||||||||||||||||||
Investment in subsidiaries | 161,902 | 167,602 | 201,452 | — | (530,956 | ) | — | ||||||||||||||||||
Total assets | $ | 168,212 | $ | 167,602 | $ | 1,007,735 | $ | 345,797 | $ | (619,061 | ) | $ | 1,070,285 | ||||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Accounts payable | $ | — | $ | — | $ | 62,972 | $ | 16,728 | $ | — | $ | 79,700 | |||||||||||||
Intercompany payables | — | 5,700 | 6,093 | 73,271 | (85,064 | ) | — | ||||||||||||||||||
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 | — | — | 2,278 | 31 | — | 2,309 | |||||||||||||||||||
Total current liabilities | 510 | 5,700 | 152,624 | 114,784 | (85,064 | ) | 188,554 | ||||||||||||||||||
Capital lease obligations | — | — | 109,695 | 2,541 | — | 112,236 | |||||||||||||||||||
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 | — | — | 33,077 | 21,707 | — | 54,784 | |||||||||||||||||||
Total liabilities | 149,157 | 5,700 | 840,133 | 144,345 | (88,105 | ) | 1,051,230 | ||||||||||||||||||
Total shareholders’ equity | 19,055 | 161,902 | 167,602 | 201,452 | (530,956 | ) | 19,055 | ||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 168,212 | $ | 167,602 | $ | 1,007,735 | $ | 345,797 | $ | (619,061 | ) | $ | 1,070,285 | ||||||||||||
Guarantor Financial Statements - Condensed Consolidating Statement of Comprehensive Loss (Detail) | ' | ||||||||||||||||||||||||
TOPS HOLDING II CORPORATION | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS | |||||||||||||||||||||||||
FOR THE 12-WEEK PERIOD ENDED OCTOBER 4, 2014 | |||||||||||||||||||||||||
(Successor) | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Tops Holding | Tops Holding | Tops Markets, LLC | Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
II Corporation | LLC | Subsidiaries | |||||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 447,554 | $ | 133,393 | $ | (206 | ) | $ | 580,741 | ||||||||||||
Cost of goods sold | — | — | (315,332 | ) | (89,407 | ) | — | (404,739 | ) | ||||||||||||||||
Distribution costs | — | — | (8,442 | ) | (2,527 | ) | — | (10,969 | ) | ||||||||||||||||
Gross profit | — | — | 123,780 | 41,459 | (206 | ) | 165,033 | ||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||
Wages, salaries and benefits | — | — | (59,934 | ) | (20,371 | ) | — | (80,305 | ) | ||||||||||||||||
Selling and general expenses | — | — | (20,524 | ) | (7,153 | ) | 206 | (27,471 | ) | ||||||||||||||||
Administrative expenses | — | — | (12,568 | ) | (3,734 | ) | — | (16,302 | ) | ||||||||||||||||
Rent expense, net | — | — | (4,157 | ) | (2,076 | ) | — | (6,233 | ) | ||||||||||||||||
Depreciation and amortization | — | — | (8,836 | ) | (5,070 | ) | — | (13,906 | ) | ||||||||||||||||
Advertising | — | — | (3,281 | ) | (999 | ) | — | (4,280 | ) | ||||||||||||||||
Total operating expenses | — | — | (109,300 | ) | (39,403 | ) | 206 | (148,497 | ) | ||||||||||||||||
Operating income | — | — | 14,480 | 2,056 | — | 16,536 | |||||||||||||||||||
Interest expense, net | (3,329 | ) | — | (15,096 | ) | (200 | ) | — | (18,625 | ) | |||||||||||||||
Equity income from subsidiaries | 2,408 | 2,408 | 1,121 | — | (5,937 | ) | — | ||||||||||||||||||
(Loss) income before income taxes | (921 | ) | 2,408 | 505 | 1,856 | (5,937 | ) | (2,089 | ) | ||||||||||||||||
Income tax benefit (expense) | — | — | 1,903 | (735 | ) | — | 1,168 | ||||||||||||||||||
Net (loss) income | (921 | ) | 2,408 | 2,408 | 1,121 | (5,937 | ) | (921 | ) | ||||||||||||||||
Other comprehensive loss | (13 | ) | (13 | ) | (13 | ) | — | 26 | (13 | ) | |||||||||||||||
Comprehensive (loss) income | $ | (934 | ) | $ | 2,395 | $ | 2,395 | $ | 1,121 | $ | (5,911 | ) | $ | (934 | ) | ||||||||||
TOPS HOLDING II CORPORATION | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS | |||||||||||||||||||||||||
FOR THE 12-WEEK PERIOD ENDED OCTOBER 5, 2013 | |||||||||||||||||||||||||
(Predecessor) | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Tops Holding | Tops Holding | Tops Markets, LLC | Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
II Corporation | LLC | Subsidiaries | |||||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 440,270 | $ | 132,379 | $ | (195 | ) | $ | 572,454 | ||||||||||||
Cost of goods sold | — | — | (309,056 | ) | (87,853 | ) | — | (396,909 | ) | ||||||||||||||||
Distribution costs | — | — | (8,991 | ) | (3,153 | ) | — | (12,144 | ) | ||||||||||||||||
Gross profit | — | — | 122,223 | 41,373 | (195 | ) | 163,401 | ||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||
Wages, salaries and benefits | — | — | (58,688 | ) | (19,825 | ) | — | (78,513 | ) | ||||||||||||||||
Selling and general expenses | — | — | (20,392 | ) | (6,782 | ) | 195 | (26,979 | ) | ||||||||||||||||
Administrative expenses | — | (219 | ) | (12,000 | ) | (4,090 | ) | — | (16,309 | ) | |||||||||||||||
Rent expense, net | — | — | (3,700 | ) | (2,143 | ) | — | (5,843 | ) | ||||||||||||||||
Depreciation and amortization | — | — | (10,043 | ) | (2,780 | ) | — | (12,823 | ) | ||||||||||||||||
Advertising | — | — | (2,957 | ) | (874 | ) | — | (3,831 | ) | ||||||||||||||||
Impairment | — | — | (1,620 | ) | — | — | (1,620 | ) | |||||||||||||||||
Total operating expenses | — | (219 | ) | (109,400 | ) | (36,494 | ) | 195 | (145,918 | ) | |||||||||||||||
Operating (loss) income | — | (219 | ) | 12,823 | 4,879 | — | 17,483 | ||||||||||||||||||
Interest expense, net | (3,307 | ) | — | (13,894 | ) | (44 | ) | — | (17,245 | ) | |||||||||||||||
Equity income from subsidiaries | 3,167 | 3,386 | 2,921 | — | (9,474 | ) | — | ||||||||||||||||||
(Loss) income before income taxes | (140 | ) | 3,167 | 1,850 | 4,835 | (9,474 | ) | 238 | |||||||||||||||||
Income tax benefit (expense) | — | — | 1,536 | (1,914 | ) | — | (378 | ) | |||||||||||||||||
Net (loss) income | (140 | ) | 3,167 | 3,386 | 2,921 | (9,474 | ) | (140 | ) | ||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | |||||||||||||||||||
Comprehensive (loss) income | $ | (140 | ) | $ | 3,167 | $ | 3,386 | $ | 2,921 | $ | (9,474 | ) | $ | (140 | ) | ||||||||||
TOPS HOLDING II CORPORATION | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS | |||||||||||||||||||||||||
FOR THE 40-WEEK PERIOD ENDED OCTOBER 4, 2014 | |||||||||||||||||||||||||
(Successor) | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Tops Holding | Tops Holding | Tops Markets, LLC | Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
II Corporation | LLC | Subsidiaries | |||||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 1,491,543 | $ | 442,739 | $ | (802 | ) | $ | 1,933,480 | ||||||||||||
Cost of goods sold | — | — | (1,053,960 | ) | (295,395 | ) | — | (1,349,355 | ) | ||||||||||||||||
Distribution costs | — | — | (29,166 | ) | (8,635 | ) | — | (37,801 | ) | ||||||||||||||||
Gross profit | — | — | 408,417 | 138,709 | (802 | ) | 546,324 | ||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||
Wages, salaries and benefits | — | — | (199,756 | ) | (67,749 | ) | — | (267,505 | ) | ||||||||||||||||
Selling and general expenses | — | — | (72,503 | ) | (25,237 | ) | 802 | (96,938 | ) | ||||||||||||||||
Administrative expenses | — | — | (39,339 | ) | (11,946 | ) | — | (51,285 | ) | ||||||||||||||||
Rent expense, net | — | — | (13,432 | ) | (7,074 | ) | — | (20,506 | ) | ||||||||||||||||
Depreciation and amortization | — | — | (36,193 | ) | (8,858 | ) | — | (45,051 | ) | ||||||||||||||||
Advertising | — | — | (12,295 | ) | (3,747 | ) | — | (16,042 | ) | ||||||||||||||||
Total operating expenses | — | — | (373,518 | ) | (124,611 | ) | 802 | (497,327 | ) | ||||||||||||||||
Operating income | — | — | 34,899 | 14,098 | — | 48,997 | |||||||||||||||||||
Interest expense, net | (11,164 | ) | — | (51,307 | ) | (552 | ) | — | (63,023 | ) | |||||||||||||||
Equity (loss) income from subsidiaries | 1,279 | 1,279 | 8,182 | — | (10,740 | ) | — | ||||||||||||||||||
(Loss) income before income taxes | (9,885 | ) | 1,279 | (8,226 | ) | 13,546 | (10,740 | ) | (14,026 | ) | |||||||||||||||
Income tax benefit (expense) | — | — | 9,505 | (5,364 | ) | — | 4,141 | ||||||||||||||||||
Net (loss) income | (9,885 | ) | 1,279 | 1,279 | 8,182 | (10,740 | ) | (9,885 | ) | ||||||||||||||||
Other comprehensive income | 435 | 435 | 435 | — | (870 | ) | 435 | ||||||||||||||||||
Comprehensive (loss) income | $ | (9,450 | ) | $ | 1,714 | $ | 1,714 | $ | 8,182 | $ | (11,610 | ) | $ | (9,450 | ) | ||||||||||
TOPS HOLDING II CORPORATION | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS | |||||||||||||||||||||||||
FOR THE 40-WEEK PERIOD ENDED OCTOBER 5, 2013 | |||||||||||||||||||||||||
(Predecessor) | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Tops Holding | Tops Holding | Tops Markets, LLC | Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
II Corporation | LLC | Subsidiaries | |||||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 1,469,913 | $ | 440,401 | $ | (776 | ) | $ | 1,909,538 | ||||||||||||
Cost of goods sold | — | — | (1,036,550 | ) | (292,444 | ) | — | (1,328,994 | ) | ||||||||||||||||
Distribution costs | — | — | (28,455 | ) | (9,969 | ) | — | (38,424 | ) | ||||||||||||||||
Gross profit | — | — | 404,908 | 137,988 | (776 | ) | 542,120 | ||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||
Wages, salaries and benefits | — | — | (196,391 | ) | (66,954 | ) | — | (263,345 | ) | ||||||||||||||||
Selling and general expenses | — | — | (68,410 | ) | (22,527 | ) | 776 | (90,161 | ) | ||||||||||||||||
Administrative expenses | (10,893 | ) | (731 | ) | (40,392 | ) | (13,619 | ) | — | (65,635 | ) | ||||||||||||||
Rent expense, net | — | — | (11,676 | ) | (7,043 | ) | — | (18,719 | ) | ||||||||||||||||
Depreciation and amortization | — | — | (33,478 | ) | (9,397 | ) | — | (42,875 | ) | ||||||||||||||||
Advertising | — | — | (11,747 | ) | (3,533 | ) | — | (15,280 | ) | ||||||||||||||||
Impairment | — | — | (1620 | ) | — | — | (1,620 | ) | |||||||||||||||||
Total operating expenses | (10,893 | ) | (731 | ) | (363,714 | ) | (123,073 | ) | 776 | (497,635 | ) | ||||||||||||||
Operating (loss) income | (10,893 | ) | (731 | ) | 41,194 | 14,915 | — | 44,485 | |||||||||||||||||
Interest expense, net | (5,708 | ) | — | (47,125 | ) | (126 | ) | — | (52,959 | ) | |||||||||||||||
Equity income from subsidiaries | 6,944 | 7,675 | 8,933 | — | (23,552 | ) | — | ||||||||||||||||||
(Loss) income before income taxes | (9,657 | ) | 6,944 | 3,002 | 14,789 | (23,552 | ) | (8,474 | ) | ||||||||||||||||
Income tax benefit (expense) | — | — | 4,673 | (5,856 | ) | — | (1,183 | ) | |||||||||||||||||
Net (loss) income | (9,657 | ) | 6,944 | 7,675 | 8,933 | (23,552 | ) | (9,657 | ) | ||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | |||||||||||||||||||
Comprehensive (loss) income | $ | (9,657 | ) | $ | 6,944 | $ | 7,675 | $ | 8,933 | $ | (23,552 | ) | $ | (9,657 | ) | ||||||||||
Guarantor Financial Statements - Condensed Consolidating Statement of Cash Flows (Detail) | ' | ||||||||||||||||||||||||
TOPS HOLDING II CORPORATION | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||
FOR THE 40-WEEK PERIOD ENDED OCTOBER 4, 2014 | |||||||||||||||||||||||||
(Successor) | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Tops Holding | Tops Holding | Tops Markets, LLC | Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
II Corporation | LLC | Subsidiaries | |||||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (6,563 | ) | $ | — | $ | 22,078 | $ | 20,151 | $ | — | $ | 35,666 | ||||||||||||
Cash flows provided by (used in) investing activities: | |||||||||||||||||||||||||
Cash paid for property and equipment | — | — | (28,061 | ) | (2,361 | ) | — | (30,422 | ) | ||||||||||||||||
Change in intercompany receivables position | — | — | 34,283 | 1,859 | (36,142 | ) | — | ||||||||||||||||||
Net cash provided by (used in) investing activities | — | — | 6,222 | (502 | ) | (36,142 | ) | (30,422 | ) | ||||||||||||||||
Cash flows provided by (used in) financing activities: | |||||||||||||||||||||||||
Dividends | (12,571 | ) | (19,134 | ) | (19,134 | ) | — | 38,268 | (12,571 | ) | |||||||||||||||
Capital contributions | 19,134 | 19,134 | — | — | (38,268 | ) | — | ||||||||||||||||||
Borrowings on 2017 ABL Facility | — | — | 315,600 | — | — | 315,600 | |||||||||||||||||||
Repayments on 2017 ABL Facility | — | — | (323,800 | ) | — | — | (323,800 | ) | |||||||||||||||||
Proceeds from sale leaseback financing transactions | — | — | 10,360 | 15,076 | — | 25,436 | |||||||||||||||||||
Principal payments on capital leases | — | — | (6,586 | ) | (361 | ) | — | (6,947 | ) | ||||||||||||||||
Repayments of long-term debt borrowings | — | — | (3,283 | ) | (24 | ) | — | (3,307 | ) | ||||||||||||||||
Deferred financing costs paid | — | — | (637 | ) | — | — | (637 | ) | |||||||||||||||||
Change in bank overdraft position | — | — | 98 | — | — | 98 | |||||||||||||||||||
Change in intercompany payables position | — | — | (1,859 | ) | (34,283 | ) | 36,142 | — | |||||||||||||||||
Net cash provided by (used in) financing activities | 6,563 | — | (29,241 | ) | (19,592 | ) | 36,142 | (6,128 | ) | ||||||||||||||||
Net (decrease) increase in cash and cash equivalents | — | (941 | ) | 57 | — | (884 | ) | ||||||||||||||||||
Cash and cash equivalents – beginning of period | — | 29,051 | 862 | — | 29,913 | ||||||||||||||||||||
Cash and cash equivalents – end of period | $ | — | $ | — | $ | 28,110 | $ | 919 | $ | — | $ | 29,029 | |||||||||||||
TOPS HOLDING II CORPORATION | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||
FOR THE 40-WEEK PERIOD ENDED OCTOBER 5, 2013 | |||||||||||||||||||||||||
(Predecessor) | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Tops Holding | Tops Holding | Tops Markets, LLC | Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
II Corporation | LLC | Subsidiaries | |||||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | — | $ | (731 | ) | $ | 25,919 | $ | 18,001 | $ | — | $ | 43,189 | ||||||||||||
Cash flows used in investing activities: | |||||||||||||||||||||||||
Cash paid for property and equipment | — | — | (37,489 | ) | (2,823 | ) | — | (40,312 | ) | ||||||||||||||||
Acquisition of independent supermarkets | — | — | (5,995 | ) | — | — | (5,995 | ) | |||||||||||||||||
Change in intercompany receivables position | — | — | (731 | ) | (14,879 | ) | 15,610 | — | |||||||||||||||||
Net cash used in investing activities | — | — | (44,215 | ) | (17,702 | ) | 15,610 | (46,307 | ) | ||||||||||||||||
Cash flows provided by (used in) financing activities: | |||||||||||||||||||||||||
Proceeds from long-term debt borrowings | 148,500 | — | — | — | — | 148,500 | |||||||||||||||||||
Dividend to shareholders | (141,920 | ) | — | — | — | — | (141,920 | ) | |||||||||||||||||
Stock option exercises | 227 | — | — | — | — | 227 | |||||||||||||||||||
Change in intercompany payables position | — | 731 | 14,879 | — | (15,610 | ) | — | ||||||||||||||||||
Borrowings on 2017 ABL Facility | — | — | 241,300 | — | — | 241,300 | |||||||||||||||||||
Repayments on 2017 ABL Facility | — | — | (228,000 | ) | — | — | (228,000 | ) | |||||||||||||||||
Principal payments on capital leases | — | — | (10,971 | ) | (304 | ) | — | (11,275 | ) | ||||||||||||||||
Deferred financing costs paid | — | — | (8,154 | ) | — | — | (8,154 | ) | |||||||||||||||||
Repayments of long-term debt borrowings | — | — | (227 | ) | — | — | (227 | ) | |||||||||||||||||
Change in bank overdraft position | — | — | 47 | — | — | 47 | |||||||||||||||||||
Net cash provided by (used in) financing activities | 6,807 | 731 | 8,874 | (304 | ) | (15,610 | ) | 498 | |||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 6,807 | — | (9,422 | ) | (5 | ) | — | (2,620 | ) | ||||||||||||||||
Cash and cash equivalents – beginning of period | — | — | 31,586 | 836 | — | 32,422 | |||||||||||||||||||
Cash and cash equivalents – end of period | $ | 6,807 | $ | — | $ | 22,164 | $ | 831 | $ | — | $ | 29,802 |
The_Company_Basis_of_Presentat3
The Company, Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) | 9 Months Ended | |
Oct. 04, 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 |
Number of reportable segment | 1 | ' |
Fuel [Member] | ' | ' |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Services offered by supermarkets | 51 | ' |
Pharmacy [Member] | ' | ' |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Services offered by supermarkets | 76 | ' |
Supermarkets [Member] | ' | ' |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Number of retail supermarkets | 158 | ' |
Additional operated supermarkets by franchisees | 5 | ' |
Members of Management [Member] | ' | ' |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Number of ownership shares | 6 | ' |
The_Company_Basis_of_Presentat4
The Company, Basis of Presentation and Summary of Significant Accounting Policies - Summary of Sales Revenue by Type of Product (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Oct. 04, 2014 | Oct. 04, 2014 | Oct. 04, 2014 | Oct. 04, 2014 | Oct. 04, 2014 | Oct. 04, 2014 | Oct. 04, 2014 | Oct. 04, 2014 | Oct. 04, 2014 | Oct. 04, 2014 | Oct. 04, 2014 | Oct. 04, 2014 | Oct. 05, 2013 | Oct. 05, 2013 | Oct. 05, 2013 | Oct. 05, 2013 | Oct. 05, 2013 | Oct. 05, 2013 | Oct. 05, 2013 | Oct. 05, 2013 | Oct. 05, 2013 | Oct. 05, 2013 | Oct. 05, 2013 | Oct. 05, 2013 |
Non-perishables [Member] | Non-perishables [Member] | Perishable [Member] | Perishable [Member] | Fuel [Member] | Fuel [Member] | Pharmacy [Member] | Pharmacy [Member] | Other Products [Member] | Other Products [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | |||
Non-perishables [Member] | Non-perishables [Member] | Perishable [Member] | Perishable [Member] | Fuel [Member] | Fuel [Member] | Pharmacy [Member] | Pharmacy [Member] | Other Products [Member] | Other Products [Member] | |||||||||||||||
Sales Revenue, Goods, Net [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales revenue | $580,741 | $1,933,480 | $322,403 | $1,067,793 | $159,968 | $540,835 | $54,559 | $180,846 | $38,707 | $126,986 | $5,104 | $17,020 | $572,454 | $1,909,538 | $323,196 | $1,076,389 | $155,914 | $525,988 | $52,200 | $171,870 | $36,982 | $121,394 | $4,162 | $13,897 |
Sale revenue percentage | 100.00% | 100.00% | 55.50% | 55.20% | 27.50% | 28.00% | 9.40% | 9.30% | 6.70% | 6.60% | 0.90% | 0.90% | 100.00% | 100.00% | 56.50% | 56.40% | 27.20% | 27.50% | 9.10% | 9.00% | 6.50% | 6.40% | 0.70% | 0.70% |
The_Company_Basis_of_Presentat5
The Company, Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Carrying and Estimated Values of Debt Instruments (Detail) (USD $) | Oct. 04, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Carrying value of long-term debt: | ' | ' |
Current portion of long-term debt | $1,960 | $2,309 |
Long-term debt | 659,173 | 664,186 |
Total carrying value of long-term debt | 661,133 | 666,495 |
Fair value of long-term debt | 688,881 | 719,861 |
Excess of fair value over carrying value | $27,748 | $53,366 |
Business_Acquisition_Additiona
Business Acquisition - Additional Information (Detail) (USD $) | Dec. 01, 2013 | Dec. 01, 2013 | Dec. 01, 2013 | Dec. 28, 2013 | Jul. 12, 2014 | Dec. 01, 2013 | Dec. 01, 2013 |
Management Purchase [Member] | Management Purchase [Member] | Change in Useful Life of Property and Equipment [Member] | Change in Useful Life of Property and Equipment [Member] | Indefinite-lived Intangible Assets [Member] | Indefinite-lived Intangible Assets [Member] | ||
Minimum [Member] | Maximum [Member] | ||||||
Income Approach Valuation Technique [Member] | Income Approach Valuation Technique [Member] | ||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Transaction cost | ' | ' | $15,800,000 | ' | ' | ' | ' |
Cash consideration, businesses acquisition | ' | 20,860,000 | ' | ' | ' | ' | ' |
Intangible assets, discount rate | ' | ' | ' | ' | ' | 14.00% | 16.00% |
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 | 88,400,000 | ' | ' | ' | ' | ' | ' |
Reduction in depreciation expense | ' | ' | ' | 1,300,000 | 4,500,000 | ' | ' |
Change of income tax benefit (expense) | ' | ' | ' | ($500,000) | $900,000 | ' | ' |
Business_Acquisition_Allocatio
Business Acquisition - Allocation of Purchase Price to Assets Acquired and Liabilities Assumed and Adjustments to Estimated Fair Values of Assets and Liabilities (Detail) (USD $) | Oct. 04, 2014 | Dec. 28, 2013 | Dec. 01, 2013 | Dec. 01, 2013 | Dec. 01, 2013 | Dec. 01, 2013 | Dec. 01, 2013 |
In Thousands, unless otherwise specified | Management Purchase [Member] | Management Purchase [Member] | Management Purchase [Member] | Management Purchase [Member] | Management Purchase [Member] | ||
Initial Estimate [Member] | Initial Estimate [Member] | Adjustments [Member] | |||||
Assets acquired: | ' | ' | ' | ' | ' | ' | ' |
Cash | ' | ' | ' | $25,149 | ' | $25,149 | ' |
Accounts receivable | ' | ' | ' | 66,244 | ' | 66,244 | ' |
Inventory | ' | ' | ' | 149,911 | ' | 149,911 | ' |
Prepaid expenses | ' | ' | ' | 14,905 | ' | 14,905 | ' |
Income taxes refundable | ' | ' | ' | 116 | ' | 116 | ' |
Deferred tax assets | ' | ' | ' | 1,122 | ' | 1,122 | ' |
Property and equipment | ' | ' | ' | 387,421 | ' | 385,811 | 1,610 |
Goodwill | 214,290 | 214,290 | ' | 214,290 | ' | 217,406 | -3,116 |
Intangible assets | ' | ' | ' | 195,800 | ' | 194,300 | 1,500 |
Other assets | ' | ' | ' | 19,456 | ' | 19,456 | ' |
Total assets acquired | ' | ' | ' | 1,074,414 | ' | 1,074,420 | -6 |
Liabilities assumed: | ' | ' | ' | ' | ' | ' | ' |
Accounts payable | ' | ' | ' | 81,588 | ' | 81,588 | ' |
Accrued expenses and other current liabilities | ' | ' | ' | 113,544 | ' | 113,544 | ' |
Other long-term liabilities | ' | ' | ' | 31,196 | ' | 31,196 | ' |
Capital lease obligations | ' | ' | ' | 122,099 | ' | 124,149 | -2,050 |
Long-term debt | ' | ' | ' | 654,177 | ' | 654,177 | ' |
Deferred tax liabilities | ' | ' | ' | 50,950 | ' | 48,906 | 2,044 |
Total liabilities assumed | ' | ' | ' | 1,053,554 | ' | 1,053,560 | -6 |
Acquisition price | ' | ' | $20,860 | ' | $20,860 | ' | ' |
Business_Acquisition_Unaudited
Business Acquisition - Unaudited Pro forma Financial Information (Detail) (Predecessor [Member], Management Purchase [Member], USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Oct. 05, 2013 |
Predecessor [Member] | Management Purchase [Member] | ' |
Business Acquisition Pro Forma Information [Line Items] | ' |
Net sales | $1,909,538 |
Operating income | 28,672 |
Net loss | ($25,470) |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets Net - Summary of Change in Goodwill (Detail) (USD $) | Oct. 04, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill [Roll Forward] | ' | ' |
Goodwill, Beginning Balance | $214,290 | $214,290 |
Goodwill, Ending Balance | $214,290 | $214,290 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets Net - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Oct. 04, 2014 | Oct. 05, 2013 | Oct. 04, 2014 | Oct. 05, 2013 | |
Goodwill [Line Items] | ' | ' | ' | ' |
Goodwill impairment charges | $0 | $0 | $0 | $0 |
Amortization expense | 2,900,000 | 1,900,000 | 9,600,000 | 6,400,000 |
Contra expense related to amortization of unfavorable lease rights | 100,000 | 300,000 | 300,000 | 1,200,000 |
2014 (remaining period) | 2,891,000 | ' | 2,891,000 | ' |
2016 | 10,984,000 | ' | 10,984,000 | ' |
2017 | 7,930,000 | ' | 7,930,000 | ' |
2018 | 6,740,000 | ' | 6,740,000 | ' |
Thereafter | 19,882,000 | ' | 19,882,000 | ' |
Tradename - Indefinite [Member] | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' |
Impairment | 0 | 0 | 0 | 0 |
Unfavorable Lease Rights [Member] | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' |
2014 (remaining period) | 100,000 | 100,000 | 100,000 | 100,000 |
2015 | 400,000 | 400,000 | 400,000 | 400,000 |
2016 | 400,000 | 400,000 | 400,000 | 400,000 |
2017 | 400,000 | 400,000 | 400,000 | 400,000 |
2018 | 400,000 | 400,000 | 400,000 | 400,000 |
Thereafter | $1,400,000 | $1,400,000 | $1,400,000 | $1,400,000 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets Net - Summary of Intangible Assets, Net of Accumulated Amortization (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Oct. 04, 2014 | Dec. 28, 2013 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ' | ' |
Gross Carrying Amount | $195,800 | $195,800 |
Accumulated Amortization | -10,626 | -991 |
Net Carrying Amount | 185,174 | 194,809 |
Weighted Average Amortization Period | '12 years 4 months 24 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 | 29,900 | 29,900 |
Accumulated Amortization | -6,394 | -598 |
Net Carrying Amount | 23,506 | 29,302 |
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 | -2,569 | -233 |
Net Carrying Amount | 19,031 | 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 | -1,663 | -160 |
Net Carrying Amount | $11,637 | $13,140 |
Weighted Average Amortization Period | '14 years | ' |
Goodwill_and_Intangible_Assets5
Goodwill and Intangible Assets Net - Summary of Expected Future Amortization of Intangible Assets (Detail) (USD $) | Oct. 04, 2014 |
In Thousands, unless otherwise specified | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' |
Future amortization expense, 2014 (remaining period) | $2,891 |
Future amortization expense, 2015 | 10,984 |
Future amortization expense, 2016 | 7,930 |
Future amortization expense, 2017 | 6,740 |
Future amortization expense, 2018 | 5,747 |
Future amortization expense, Thereafter | $19,882 |
Accrued_Expenses_and_Other_Cur2
Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses and Other Current Liabilities (Detail) (USD $) | Oct. 04, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Accrued expenses and other current liabilities | ' | ' |
Interest payable | $16,679 | $2,272 |
Wages, taxes and benefits | 16,214 | 18,391 |
Lottery | 11,282 | 10,519 |
Union medical, pension and 401(k) | 9,224 | 4,589 |
Self-insurance reserves | 6,075 | 6,033 |
Professional and legal fees | 4,043 | 18,854 |
Money orders | 4,037 | 1,456 |
Sales and use tax | 3,224 | 6,279 |
Gift cards | 3,101 | 7,312 |
Property and equipment expenditures | 2,720 | 4,285 |
Utilities | 2,295 | 2,714 |
Repairs and maintenance | 2,002 | 2,539 |
Other | 10,065 | 12,988 |
Accrued expenses and other current liabilities, Total | $90,961 | $98,231 |
Accrued_Expenses_and_Other_Cur3
Accrued Expenses and Other Current Liabilities - Additional Information (Detail) (Management Purchase [Member], USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Oct. 04, 2014 |
Management Purchase [Member] | ' |
Accrued Expenses And Other Liabilities [Line Items] | ' |
Professional and legal fees paid | $15.20 |
Capital_Lease_Obligations_Addi
Capital Lease Obligations - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
Oct. 04, 2014 | Oct. 04, 2014 | |
Leases [Line Items] | ' | ' |
Leases term | ' | '25 years |
Capital lease expiration year | ' | '2035 |
Cash proceeds from sale-leaseback of properties | $12,600,000 | $25,436,000 |
Underlying cash payments to remove the related land and obligations | $0 | $0 |
Minimum [Member] | ' | ' |
Leases [Line Items] | ' | ' |
Capital lease expiration year | ' | '2023 |
Maximum [Member] | ' | ' |
Leases [Line Items] | ' | ' |
Capital lease expiration year | ' | '2068 |
Capital_Lease_Obligations_Sche
Capital Lease Obligations - Schedule of Future Minimum Lease Rental Payments for Capital Lease Obligations (Detail) (USD $) | Oct. 04, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Leases [Abstract] | ' | ' |
Future lease payment, 2014 (remaining period) | $6,946 | ' |
Future lease payment, 2015 | 30,274 | ' |
Future lease payment, 2016 | 28,999 | ' |
Future lease payment, 2017 | 25,865 | ' |
Future lease payment, 2018 | 22,655 | ' |
Future lease payment, Thereafter | 114,631 | ' |
Total minimum lease payments | 229,370 | ' |
Less amounts representing interest | -153,578 | ' |
Present value of net minimum lease payments | 75,792 | ' |
Present value of net minimum lease payments | 75,792 | ' |
Less current obligations | -8,362 | -8,314 |
Long-term cash obligations | 67,430 | ' |
Long-term cash obligations | 67,430 | ' |
Non-cash obligations | 71,012 | ' |
Total long-term capital lease obligations | $138,442 | $112,236 |
Debt_Summary_of_Longterm_Debt_
Debt - Summary of Long-term Debt (Detail) (USD $) | Oct. 04, 2014 | Dec. 28, 2013 | Nov. 29, 2013 | Oct. 04, 2014 | Dec. 28, 2013 | Oct. 04, 2014 | Dec. 28, 2013 | Oct. 04, 2014 | Dec. 28, 2013 | 15-May-13 | 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] | Mortgage Note Payable [Member] | |||
Secured Debt [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes | ' | ' | $12,300 | ' | ' | $460,000 | $460,000 | $150,000 | $150,000 | ' | ' |
Discount on notes | ' | ' | ' | ' | ' | ' | ' | -1,160 | -1,353 | -1,500 | ' |
ABL Facility | ' | ' | ' | 46,600 | 54,800 | ' | ' | ' | ' | ' | ' |
Other loans | 5,693 | 2,604 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage note payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 444 |
Total debt | 661,133 | 666,495 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total debt | 661,133 | 666,495 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current portion | -1,960 | -2,309 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total long-term debt | $659,173 | $664,186 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 0 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | ||||||||||
Nov. 29, 2013 | 15-May-13 | Dec. 20, 2012 | Oct. 04, 2014 | Oct. 04, 2014 | Dec. 28, 2013 | Dec. 14, 2012 | Oct. 04, 2014 | Dec. 28, 2013 | Oct. 04, 2014 | Oct. 04, 2014 | 15-May-13 | Oct. 04, 2014 | Dec. 28, 2013 | Oct. 04, 2014 | Dec. 20, 2012 | Oct. 04, 2014 | Dec. 28, 2013 | Dec. 20, 2012 | |
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 II [Member] | Holding II [Member] | Holding II [Member] | Holding II [Member] | Holding I [Member] | Holding I [Member] | Holding I [Member] | Old Senior Secured Notes [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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $150,000,000 | ' | ' | ' | $460,000,000 | ' | ' | ' |
Interest rate, notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.75% | ' | ' | 9.50% | 8.88% | ' | ' | ' |
Maturity date of senior notes | ' | ' | ' | ' | 14-Dec-17 | ' | ' | ' | ' | ' | ' | 15-Jun-18 | ' | ' | ' | 15-Dec-17 | ' | ' | ' |
Proceeds from long-term debt borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 148,500,000 | ' | ' | ' | ' | ' | ' | ' |
Debt original issue discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | 1,160,000 | 1,353,000 | ' | ' | ' | ' | ' |
Dividend to shareholders | ' | 141,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend per share paid | ' | $980 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Semi-annual interest payments date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The Holding II Notes mature June 15, 2018 and require semi-annual interest payments on June 15 and December 15. | ' | ' | ' | 'The Holding I Notes mature December 15, 2017 and require semi-annual interest payments on June 15 and December 15. | ' | ' |
Repayments of long-term debt borrowings | ' | ' | ' | 3,307,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 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 | ' | ' | ' | ' | 49,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, amount outstanding | ' | ' | ' | ' | 46,600,000 | 54,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
weighted average interest rate on borrowings under the ABL Facility | ' | ' | ' | ' | 2.26% | 1.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of credit outstanding | ' | ' | ' | ' | ' | ' | ' | 22,300,000 | 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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $150,000,000 | $150,000,000 | ' | ' | $460,000,000 | $460,000,000 | ' |
Interest rate of term loan | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Summary_of_Income
Income Taxes - Summary of Income Tax Benefit (Expense) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Oct. 04, 2014 | Oct. 04, 2014 | Oct. 05, 2013 | Oct. 05, 2013 |
Predecessor [Member] | Predecessor [Member] | |||
Income Taxes [Line Items] | ' | ' | ' | ' |
Current | ($23) | ($41) | ($1) | ($1) |
Deferred | 1,191 | 4,182 | -377 | -1,182 |
Total income tax benefit (expense) | $1,168 | $4,141 | ($378) | ($1,183) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Oct. 04, 2014 | Oct. 05, 2013 | Oct. 04, 2014 | Oct. 05, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Effective income tax rate | 55.90% | 158.80% | 29.50% | -14.00% |
Effective income tax rate without adjustment valuation allowance | 44.20% | -1826.40% | 41.90% | 41.90% |
Shareholders_Equity_Additional
Shareholders' Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | |
In Millions, unless otherwise specified | Sep. 25, 2014 | Jun. 30, 2014 | Mar. 31, 2014 |
Equity [Abstract] | ' | ' | ' |
Dividends paid | $7.90 | $2.30 | $2.40 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 0 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | |||||||||
Sep. 24, 2012 | Oct. 04, 2014 | Dec. 28, 2013 | Oct. 04, 2014 | Oct. 04, 2014 | Dec. 28, 2013 | 27-May-14 | Oct. 04, 2014 | Oct. 04, 2014 | Oct. 04, 2014 | Oct. 04, 2014 | Oct. 04, 2014 | Oct. 04, 2014 | Oct. 04, 2014 | Sep. 24, 2012 | |
Store | Agreement | Teamster Local 264 [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Multiemployer Plans, Pension [Member] | Multiemployer Plans, Pension [Member] | Multiemployer Plans, Pension [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] | Supplemental Supply Agreement [Member] | ||
Employees | Five Collective Bargaining Agreements [Member] | Five Collective Bargaining Agreements [Member] | Teamster Local 264 [Member] | ||||||||||||
Minimum [Member] | Maximum [Member] | Agreement | |||||||||||||
Commitments Contingencies And Litigation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Multiemployer pension plan rejected contributions | ' | ' | ' | ' | ' | ' | ' | $800,000 | $3,100,000 | ' | ' | ' | ' | ' | ' |
Liability estimate due to withdrawal from fund | ' | ' | ' | ' | ' | ' | 183,700,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Contribution payable period | ' | ' | ' | ' | ' | ' | '240 months | ' | ' | ' | ' | ' | ' | ' | ' |
Monthly installment amount | ' | ' | ' | ' | ' | ' | 641,514 | ' | ' | ' | ' | ' | ' | ' | ' |
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 | ' | 15,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of associates engaged in various unions | ' | 83.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of members working in distribution facilities | ' | ' | ' | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of collective bargaining agreements | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' |
Expiration date of collective bargaining agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2015-10 | '2017-07 | '2015-02 | '2016-04 | ' | ' |
Expiration date of collective bargaining agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2019-08 | ' |
Accrued amount related to legal proceedings | ' | ' | ' | ' | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Guarantor_Financial_Statements2
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% |
Guarantor_Financial_Statements3
Guarantor Financial Statements - Condensed Consolidated Balance Sheet (Detail) (USD $) | Oct. 04, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $29,029 | $29,913 |
Accounts receivable, net | 61,860 | 64,521 |
Intercompany receivables | 0 | ' |
Inventory, net | 153,062 | 142,296 |
Prepaid expenses and other current assets | 16,362 | 10,755 |
Income taxes refundable | 69 | 110 |
Current deferred tax assets | 6,129 | 6,129 |
Total current assets | 266,511 | 253,724 |
Property and equipment, net | 386,475 | 388,476 |
Goodwill | 214,290 | 214,290 |
Intangible assets, net | 185,174 | 194,809 |
Other assets | 15,984 | 18,986 |
Investment in subsidiaries | 0 | 0 |
Total assets | 1,068,434 | 1,070,285 |
Current liabilities: | ' | ' |
Accounts payable | 87,181 | 79,700 |
Intercompany payables | 0 | 0 |
Accrued expenses and other current liabilities | 90,961 | 98,231 |
Current portion of capital lease obligations | 8,362 | 8,314 |
Current portion of long-term debt | 1,960 | 2,309 |
Total current liabilities | 188,464 | 188,554 |
Capital lease obligations | 138,442 | 112,236 |
Long-term debt | 659,173 | 664,186 |
Other long-term liabilities | 34,606 | 31,470 |
Non-current deferred tax liabilities | 50,602 | 54,784 |
Total liabilities | 1,071,287 | 1,051,230 |
Total shareholders' (deficit) equity | -2,853 | 19,055 |
Total liabilities and shareholders' (deficit) equity | 1,068,434 | 1,070,285 |
Consolidation, Eliminations [Member] | ' | ' |
Current assets: | ' | ' |
Cash and cash equivalents | 0 | 0 |
Intercompany receivables | -48,922 | -85,064 |
Total current assets | -48,922 | -85,064 |
Other assets | -3,041 | -3,041 |
Investment in subsidiaries | -504,526 | -530,956 |
Total assets | -556,489 | -619,061 |
Current liabilities: | ' | ' |
Intercompany payables | -48,922 | -85,064 |
Total current liabilities | -48,922 | -85,064 |
Long-term debt | -3,041 | -3,041 |
Total liabilities | -51,963 | -88,105 |
Total shareholders' (deficit) equity | -504,526 | -530,956 |
Total liabilities and shareholders' (deficit) equity | -556,489 | -619,061 |
Tops Holding II Corporation [Member] | ' | ' |
Current assets: | ' | ' |
Cash and cash equivalents | 0 | 0 |
Other assets | 5,401 | 6,310 |
Investment in subsidiaries | 144,596 | 161,902 |
Total assets | 149,997 | 168,212 |
Current liabilities: | ' | ' |
Accrued expenses and other current liabilities | 4,010 | 510 |
Total current liabilities | 4,010 | 510 |
Long-term debt | 148,840 | 148,647 |
Total liabilities | 152,850 | 149,157 |
Total shareholders' (deficit) equity | -2,853 | 19,055 |
Total liabilities and shareholders' (deficit) equity | 149,997 | 168,212 |
Tops Holding LLC [Member] | ' | ' |
Current assets: | ' | ' |
Cash and cash equivalents | 0 | 0 |
Investment in subsidiaries | 150,296 | 167,602 |
Total assets | 150,296 | 167,602 |
Current liabilities: | ' | ' |
Intercompany payables | 5,700 | 5,700 |
Total current liabilities | 5,700 | 5,700 |
Total liabilities | 5,700 | 5,700 |
Total shareholders' (deficit) equity | 144,596 | 161,902 |
Total liabilities and shareholders' (deficit) equity | 150,296 | 167,602 |
Tops Markets, LLC [Member] | ' | ' |
Current assets: | ' | ' |
Cash and cash equivalents | 28,110 | 29,051 |
Accounts receivable, net | 49,882 | 52,453 |
Intercompany receivables | 44,688 | 78,971 |
Inventory, net | 115,688 | 106,487 |
Prepaid expenses and other current assets | 13,204 | 7,817 |
Income taxes refundable | 69 | 110 |
Current deferred tax assets | 6,129 | 6,129 |
Total current assets | 257,770 | 281,018 |
Property and equipment, net | 324,072 | 320,210 |
Goodwill | 48,310 | 48,310 |
Intangible assets, net | 136,701 | 144,069 |
Other assets | 10,583 | 12,676 |
Investment in subsidiaries | 209,634 | 201,452 |
Total assets | 987,070 | 1,007,735 |
Current liabilities: | ' | ' |
Accounts payable | 68,047 | 62,972 |
Intercompany payables | 4,234 | 6,093 |
Accrued expenses and other current liabilities | 68,286 | 73,363 |
Current portion of capital lease obligations | 8,234 | 7,918 |
Current portion of long-term debt | 1,929 | 2,278 |
Total current liabilities | 150,730 | 152,624 |
Capital lease obligations | 120,958 | 109,695 |
Long-term debt | 512,826 | 518,007 |
Other long-term liabilities | 28,729 | 26,730 |
Non-current deferred tax liabilities | 23,531 | 33,077 |
Total liabilities | 836,774 | 840,133 |
Total shareholders' (deficit) equity | 150,296 | 167,602 |
Total liabilities and shareholders' (deficit) equity | 987,070 | 1,007,735 |
Guarantor Subsidiaries [Member] | ' | ' |
Current assets: | ' | ' |
Cash and cash equivalents | 919 | 862 |
Accounts receivable, net | 11,978 | 12,068 |
Intercompany receivables | 4,234 | 6,093 |
Inventory, net | 37,374 | 35,809 |
Prepaid expenses and other current assets | 3,158 | 2,938 |
Total current assets | 57,663 | 57,770 |
Property and equipment, net | 62,403 | 68,266 |
Goodwill | 165,980 | 165,980 |
Intangible assets, net | 48,473 | 50,740 |
Other assets | 3,041 | 3,041 |
Total assets | 337,560 | 345,797 |
Current liabilities: | ' | ' |
Accounts payable | 19,134 | 16,728 |
Intercompany payables | 38,988 | 73,271 |
Accrued expenses and other current liabilities | 18,665 | 24,358 |
Current portion of capital lease obligations | 128 | 396 |
Current portion of long-term debt | 31 | 31 |
Total current liabilities | 76,946 | 114,784 |
Capital lease obligations | 17,484 | 2,541 |
Long-term debt | 548 | 573 |
Other long-term liabilities | 5,877 | 4,740 |
Non-current deferred tax liabilities | 27,071 | 21,707 |
Total liabilities | 127,926 | 144,345 |
Total shareholders' (deficit) equity | 209,634 | 201,452 |
Total liabilities and shareholders' (deficit) equity | $337,560 | $345,797 |
Guarantor_Financial_Statements4
Guarantor Financial Statements - Condensed Consolidated Statement of Comprehensive Loss (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Oct. 04, 2014 | Oct. 04, 2014 | Oct. 04, 2014 | Oct. 04, 2014 | Oct. 04, 2014 | Oct. 04, 2014 | Oct. 04, 2014 | Oct. 04, 2014 | Oct. 04, 2014 | Oct. 04, 2014 | Oct. 05, 2013 | Oct. 05, 2013 | Oct. 05, 2013 | Oct. 05, 2013 | Oct. 05, 2013 | Oct. 05, 2013 | Oct. 05, 2013 | Oct. 05, 2013 | Oct. 05, 2013 | Oct. 05, 2013 | Oct. 04, 2014 | Oct. 04, 2014 | Oct. 05, 2013 | Oct. 05, 2013 |
Tops Holding II Corporation [Member] | Tops Holding II Corporation [Member] | Tops Holding LLC [Member] | Tops Holding LLC [Member] | Tops Markets, LLC [Member] | Tops Markets, LLC [Member] | Guarantor Subsidiaries [Member] | Guarantor Subsidiaries [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Consolidation, Eliminations [Member] | Consolidation, Eliminations [Member] | Consolidation, Eliminations [Member] | Consolidation, Eliminations [Member] | |||
Tops Holding II Corporation [Member] | Tops Holding II Corporation [Member] | Tops Holding LLC [Member] | Tops Holding LLC [Member] | Tops Markets, LLC [Member] | Tops Markets, LLC [Member] | Guarantor Subsidiaries [Member] | Guarantor Subsidiaries [Member] | Predecessor [Member] | Predecessor [Member] | |||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $580,741 | $1,933,480 | ' | ' | ' | ' | $447,554 | $1,491,543 | $133,393 | $442,739 | $572,454 | $1,909,538 | ' | ' | ' | ' | $440,270 | $1,469,913 | $132,379 | $440,401 | ($206) | ($802) | ($195) | ($776) |
Cost of goods sold | -404,739 | -1,349,355 | ' | ' | ' | ' | -315,332 | -1,053,960 | -89,407 | -295,395 | -396,909 | -1,328,994 | ' | ' | ' | ' | -309,056 | -1,036,550 | -87,853 | -292,444 | ' | ' | ' | ' |
Distribution costs | -10,969 | -37,801 | ' | ' | ' | ' | -8,442 | -29,166 | -2,527 | -8,635 | -12,144 | -38,424 | ' | ' | ' | ' | -8,991 | -28,455 | -3,153 | -9,969 | ' | ' | ' | ' |
Gross profit | 165,033 | 546,324 | 0 | 0 | 0 | 0 | 123,780 | 408,417 | 41,459 | 138,709 | 163,401 | 542,120 | 0 | 0 | 0 | 0 | 122,223 | 404,908 | 41,373 | 137,988 | -206 | -802 | -195 | -776 |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Wages, salaries and benefits | -80,305 | -267,505 | ' | ' | ' | ' | -59,934 | -199,756 | -20,371 | -67,749 | -78,513 | -263,345 | ' | ' | ' | ' | -58,688 | -196,391 | -19,825 | -66,954 | ' | ' | ' | ' |
Selling and general expenses | -27,471 | -96,938 | ' | ' | ' | ' | -20,524 | -72,503 | -7,153 | -25,237 | -26,979 | -90,161 | ' | ' | ' | ' | -20,392 | -68,410 | -6,782 | -22,527 | 206 | 802 | 195 | 776 |
Administrative expenses | -16,302 | -51,285 | ' | ' | ' | ' | -12,568 | -39,339 | -3,734 | -11,946 | -16,309 | -65,635 | ' | -10,893 | -219 | -731 | -12,000 | -40,392 | -4,090 | -13,619 | ' | ' | ' | ' |
Rent expense, net | -6,233 | -20,506 | ' | ' | ' | ' | -4,157 | -13,432 | -2,076 | -7,074 | -5,843 | -18,719 | ' | ' | ' | ' | -3,700 | -11,676 | -2,143 | -7,043 | ' | ' | ' | ' |
Depreciation and amortization | -13,906 | -45,051 | ' | ' | ' | ' | -8,836 | -36,193 | -5,070 | -8,858 | -12,823 | -42,875 | ' | ' | ' | ' | -10,043 | -33,478 | -2,780 | -9,397 | ' | ' | ' | ' |
Advertising | -4,280 | -16,042 | ' | ' | ' | ' | -3,281 | -12,295 | -999 | -3,747 | -3,831 | -15,280 | ' | ' | ' | ' | -2,957 | -11,747 | -874 | -3,533 | ' | ' | ' | ' |
Impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,620 | -1,620 | ' | ' | ' | ' | -1,620 | -1,620 | ' | ' | ' | ' | ' | ' |
Total operating expenses | -148,497 | -497,327 | 0 | 0 | 0 | 0 | -109,300 | -373,518 | -39,403 | -124,611 | -145,918 | -497,635 | 0 | -10,893 | -219 | -731 | -109,400 | -363,714 | -36,494 | -123,073 | 206 | 802 | 195 | 776 |
Operating (loss) income | 16,536 | 48,997 | 0 | 0 | 0 | 0 | 14,480 | 34,899 | 2,056 | 14,098 | 17,483 | 44,485 | 0 | -10,893 | -219 | -731 | 12,823 | 41,194 | 4,879 | 14,915 | ' | ' | 0 | ' |
Interest expense, net | -18,625 | -63,023 | -3,329 | -11,164 | ' | ' | -15,096 | -51,307 | -200 | -552 | -17,245 | -52,959 | -3,307 | -5,708 | ' | ' | -13,894 | -47,125 | -44 | -126 | ' | ' | ' | ' |
Equity (loss) income from subsidiaries | 0 | 0 | 2,408 | 1,279 | 2,408 | 1,279 | 1,121 | 8,182 | ' | ' | 0 | 0 | 3,167 | 6,944 | 3,386 | 7,675 | 2,921 | 8,933 | ' | ' | -5,937 | -10,740 | -9,474 | -23,552 |
(Loss) income before income taxes | -2,089 | -14,026 | -921 | -9,885 | 2,408 | 1,279 | 505 | -8,226 | 1,856 | 13,546 | 238 | -8,474 | -140 | -9,657 | 3,167 | 6,944 | 1,850 | 3,002 | 4,835 | 14,789 | -5,937 | -10,740 | -9,474 | -23,552 |
Income tax benefit (expense) | 1,168 | 4,141 | 0 | 0 | 0 | 0 | 1,903 | 9,505 | -735 | -5,364 | -378 | -1,183 | ' | ' | ' | ' | 1,536 | 4,673 | -1,914 | -5,856 | 0 | 0 | ' | ' |
Net (loss) income | -921 | -9,885 | -921 | -9,885 | 2,408 | 1,279 | 2,408 | 1,279 | 1,121 | 8,182 | -140 | -9,657 | -140 | -9,657 | 3,167 | 6,944 | 3,386 | 7,675 | 2,921 | 8,933 | -5,937 | -10,740 | -9,474 | -23,552 |
Other comprehensive income | -13 | 435 | -13 | 435 | -13 | 435 | -13 | 435 | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 26 | -870 | ' | ' |
Comprehensive (loss) income | ($934) | ($9,450) | ($934) | ($9,450) | $2,395 | $1,714 | $2,395 | $1,714 | $1,121 | $8,182 | ($140) | ($9,657) | ($140) | ($9,657) | $3,167 | $6,944 | $3,386 | $7,675 | $2,921 | $8,933 | ($5,911) | ($11,610) | ($9,474) | ($23,552) |
Guarantor_Financial_Statements5
Guarantor Financial Statements - Condensed Consolidated Statement of Cash Flows (Detail) (USD $) | 9 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Oct. 04, 2014 | Oct. 05, 2013 | Oct. 04, 2014 | Oct. 05, 2013 | Oct. 04, 2014 | Oct. 05, 2013 | Oct. 04, 2014 | Oct. 05, 2013 | Oct. 04, 2014 | Oct. 05, 2013 | Oct. 04, 2014 | Oct. 05, 2013 |
Predecessor [Member] | Consolidation, Eliminations [Member] | Consolidation, Eliminations [Member] | Tops Holding II Corporation [Member] | Tops Holding II Corporation [Member] | Tops Holding LLC [Member] | Tops Holding LLC [Member] | Tops Markets, LLC [Member] | Tops Markets, LLC [Member] | Guarantor Subsidiaries [Member] | Guarantor Subsidiaries [Member] | ||
Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | ||||||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net cash (used in) provided by operating activities | $35,666 | $43,189 | ' | ' | ($6,563) | ' | ' | ($731) | $22,078 | $25,919 | $20,151 | $18,001 |
Cash flows provided by (used in) investing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash paid for property and equipment | -30,422 | -40,312 | ' | ' | ' | ' | ' | ' | -28,061 | -37,489 | -2,361 | -2,823 |
Acquisition of independent supermarkets | ' | -5,995 | ' | ' | ' | ' | ' | ' | ' | -5,995 | ' | ' |
Change in intercompany receivables position | 0 | 0 | -36,142 | 15,610 | ' | ' | ' | ' | 34,283 | -731 | 1,859 | -14,879 |
Net cash provided by (used in) investing activities | -30,422 | -46,307 | -36,142 | 15,610 | 0 | 0 | 0 | 0 | 6,222 | -44,215 | -502 | -17,702 |
Cash flows provided by (used in) financing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from long-term debt borrowings | ' | 148,500 | ' | ' | ' | 148,500 | ' | ' | ' | ' | ' | ' |
Dividends | -12,571 | ' | 38,268 | ' | -12,571 | ' | -19,134 | ' | -19,134 | ' | ' | ' |
Dividend to shareholders | ' | -141,920 | ' | ' | ' | -141,920 | ' | ' | ' | ' | ' | ' |
Capital contributions | 0 | ' | -38,268 | ' | 19,134 | ' | 19,134 | ' | ' | ' | ' | ' |
Stock option exercises | ' | 227 | ' | ' | ' | 227 | ' | ' | ' | ' | ' | ' |
Change in intercompany payables position | 0 | 0 | 36,142 | -15,610 | ' | ' | ' | 731 | -1,859 | 14,879 | -34,283 | ' |
Borrowings on ABL Facility | 315,600 | 241,300 | ' | ' | ' | ' | ' | ' | 315,600 | 241,300 | ' | ' |
Repayments on ABL Facility | -323,800 | -228,000 | ' | ' | ' | ' | ' | ' | -323,800 | -228,000 | ' | ' |
Proceeds from sale leaseback financing transactions | 25,436 | ' | ' | ' | ' | ' | ' | ' | 10,360 | ' | 15,076 | ' |
Principal payments on capital leases | -6,947 | -11,275 | ' | ' | ' | ' | ' | ' | -6,586 | -10,971 | -361 | -304 |
Deferred financing costs paid | -637 | -8,154 | ' | ' | ' | ' | ' | ' | -637 | -8,154 | ' | ' |
Repayments of long-term debt borrowings | -3,307 | -227 | ' | ' | ' | ' | ' | ' | -3,283 | -227 | -24 | ' |
Change in bank overdraft position | 98 | 47 | ' | ' | ' | ' | ' | ' | 98 | 47 | ' | ' |
Net cash (used in) provided by financing activities | -6,128 | 498 | 36,142 | -15,610 | 6,563 | 6,807 | 0 | 731 | -29,241 | 8,874 | -19,592 | -304 |
Net (decrease) increase in cash and cash equivalents | -884 | -2,620 | 0 | 0 | 0 | 6,807 | 0 | 0 | -941 | -9,422 | 57 | -5 |
Cash and cash equivalents - beginning of period | 29,913 | 32,422 | 0 | ' | 0 | ' | 0 | ' | 29,051 | 31,586 | 862 | 836 |
Cash and cash equivalents - end of period | $29,029 | $29,802 | $0 | $0 | $0 | $6,807 | $0 | $0 | $28,110 | $22,164 | $919 | $831 |