Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jul. 02, 2022 | Aug. 01, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 02, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | LESL | |
Entity Registrant Name | LESLIE’S, INC. | |
Entity Central Index Key | 0001821806 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --10-01 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 183,027,684 | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-39667 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-8397425 | |
Entity Address, Address Line One | 2005 East Indian School Road | |
Entity Address, City or Town | Phoenix | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85016 | |
City Area Code | 602 | |
Local Phone Number | 366-3999 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 02, 2022 | Oct. 02, 2021 | Jul. 03, 2021 |
Current assets | |||
Cash and cash equivalents | $ 193,130 | $ 343,498 | $ 307,395 |
Accounts and other receivables, net | 47,266 | 38,860 | 47,848 |
Inventories | 361,391 | 198,789 | 224,526 |
Prepaid expenses and other current assets | 30,542 | 20,564 | 28,615 |
Total current assets | 632,329 | 601,711 | 608,384 |
Property and equipment, net | 71,653 | 70,335 | 66,363 |
Operating lease right-of-use assets | 221,694 | 212,284 | 169,001 |
Goodwill and other intangibles, net | 155,663 | 129,020 | 127,740 |
Deferred tax assets | 1,230 | 3,734 | 6,386 |
Other assets | 34,422 | 25,148 | 18,238 |
Total assets | 1,116,991 | 1,042,232 | 996,112 |
Current liabilities | |||
Accounts payable and accrued expenses | 330,881 | 233,597 | 271,731 |
Operating lease liabilities | 63,303 | 61,071 | 53,700 |
Income taxes payable | 30,611 | 6,945 | 18,906 |
Current portion of long-term debt | 8,100 | 8,100 | 8,100 |
Total current liabilities | 432,895 | 309,713 | 352,437 |
Operating lease liabilities, noncurrent | 161,473 | 160,037 | 118,941 |
Long-term debt, net | 781,322 | 786,125 | 787,731 |
Other long-term liabilities | 70 | 3,915 | 2,729 |
Total liabilities | 1,375,760 | 1,259,790 | 1,261,838 |
Commitments and contingencies | |||
Stockholders’ deficit | |||
Common stock, $0.001 par value, 1,000,000,000 shares authorized and 183,027,684, 189,821,011, and 186,884,621 issued and outstanding as of July 2, 2022, October 2, 2021, and July 3, 2021, respectively. | 183 | 190 | 189 |
Additional paid in capital | 87,050 | 204,711 | 201,085 |
Retained deficit | (346,002) | (422,459) | (467,000) |
Total stockholders’ deficit | (258,769) | (217,558) | (265,726) |
Total liabilities and stockholders’ deficit | $ 1,116,991 | $ 1,042,232 | $ 996,112 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jul. 02, 2022 | Oct. 02, 2021 | Jul. 03, 2021 |
Statement Of Financial Position [Abstract] | |||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 183,027,684 | 189,821,011 | 189,284,566 |
Common stock, shares outstanding | 183,027,684 | 189,821,011 | 189,284,566 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Income Statement [Abstract] | ||||
Sales | $ 673,633 | $ 596,543 | $ 1,086,529 | $ 933,991 |
Cost of merchandise and services sold | 370,026 | 312,845 | 629,977 | 526,895 |
Gross profit | 303,607 | 283,698 | 456,552 | 407,096 |
Selling, general and administrative expenses | 131,469 | 117,264 | 300,872 | 265,127 |
Operating income | 172,138 | 166,434 | 155,680 | 141,969 |
Other expense: | ||||
Interest expense | 6,847 | 7,399 | 20,659 | 27,041 |
Loss on debt extinguishment | 0 | 0 | 0 | 9,169 |
Other (income) expenses, net | (143) | 861 | 407 | 1,917 |
Total other expense | 6,704 | 8,260 | 21,066 | 38,127 |
Income before taxes | 165,434 | 158,174 | 134,614 | 103,842 |
Income tax expense | 42,448 | 39,372 | 33,519 | 21,749 |
Net income | $ 122,986 | $ 118,802 | $ 101,095 | $ 82,093 |
Earnings per share: | ||||
Basic | $ 0.67 | $ 0.63 | $ 0.55 | $ 0.45 |
Diluted | $ 0.67 | $ 0.61 | $ 0.54 | $ 0.43 |
Weighted average shares outstanding: | ||||
Basic | 182,937 | 188,264 | 184,707 | 184,021 |
Diluted | 184,721 | 194,200 | 186,695 | 189,603 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid in Capital (Deficit) | Retained Deficit |
Beginning Balance at Oct. 03, 2020 | $ (826,999) | $ 157 | $ (278,063) | $ (549,093) |
Beginning Balance, shares at Oct. 03, 2020 | 156,500 | |||
Issuance of common stock upon initial public offering, net of offering costs | 458,587 | $ 30 | 458,557 | |
Issuance of common stock upon initial public offering, net of offering costs, shares | 30,000 | |||
Issuance of common stock under the Plan | 2 | $ 2 | ||
Issuance of common stock under the Plan, shares | 2,785 | |||
Equity-based compensation | 20,591 | 20,591 | ||
Net income | 82,093 | 82,093 | ||
Ending Balance at Jul. 03, 2021 | (265,726) | $ 189 | 201,085 | (467,000) |
Ending Balance, shares at Jul. 03, 2021 | 189,285 | |||
Beginning Balance at Apr. 03, 2021 | (391,010) | $ 187 | 194,605 | (585,802) |
Beginning Balance, shares at Apr. 03, 2021 | 186,885 | |||
Issuance of common stock upon initial public offering, net of offering costs | 2 | $ 2 | ||
Issuance of common stock upon initial public offering, net of offering costs, shares | 2,400 | |||
Equity-based compensation | 6,480 | 6,480 | ||
Net income | 118,802 | 118,802 | ||
Ending Balance at Jul. 03, 2021 | (265,726) | $ 189 | 201,085 | (467,000) |
Ending Balance, shares at Jul. 03, 2021 | 189,285 | |||
Beginning Balance at Oct. 02, 2021 | (217,558) | $ 190 | 204,711 | (422,459) |
Beginning Balance, shares at Oct. 02, 2021 | 189,821 | |||
Issuance of common stock under the Plan | 1,378 | $ 1 | 1,377 | |
Issuance of common stock under the Plan, shares | 707 | |||
Equity-based compensation | 8,462 | 8,462 | ||
Repurchase and retirement of common stock | (152,146) | $ (8) | (127,500) | (24,638) |
Repurchase and retirement of common stock, shares | (7,500) | |||
Net income | 101,095 | 101,095 | ||
Ending Balance at Jul. 02, 2022 | (258,769) | $ 183 | 87,050 | (346,002) |
Ending Balance, shares at Jul. 02, 2022 | 183,028 | |||
Beginning Balance at Apr. 02, 2022 | (385,731) | $ 183 | 83,074 | (468,988) |
Beginning Balance, shares at Apr. 02, 2022 | 182,784 | |||
Issuance of common stock under the Plan | 1,049 | 1,049 | ||
Issuance of common stock under the Plan, shares | 244 | |||
Equity-based compensation | 2,927 | 2,927 | ||
Net income | 122,986 | 122,986 | ||
Ending Balance at Jul. 02, 2022 | $ (258,769) | $ 183 | $ 87,050 | $ (346,002) |
Ending Balance, shares at Jul. 02, 2022 | 183,028 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jul. 03, 2022 | Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | Oct. 02, 2021 | |
Operating Activities | ||||||
Net income | $ 101,095 | $ 82,093 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||
Depreciation and amortization | 22,880 | 19,205 | ||||
Equity-based compensation | 8,462 | 20,591 | ||||
Amortization of deferred financing costs and debt discounts | 1,483 | 1,551 | ||||
Provision for doubtful accounts | 723 | 134 | ||||
Deferred income taxes | 2,504 | 197 | ||||
Loss (gain) on disposition of assets | 271 | (1,668) | ||||
Loss on debt extinguishment | $ 0 | $ 0 | 0 | 9,169 | ||
Changes in operating assets and liabilities: | ||||||
Accounts and other receivables | (9,129) | (16,501) | ||||
Inventories | (146,196) | (74,401) | ||||
Prepaid expenses and other current assets | (9,075) | 6,289 | ||||
Other assets | (9,429) | (15,696) | ||||
Accounts payable and accrued expenses | 91,145 | 73,350 | ||||
Income taxes payable | 23,666 | 17,049 | ||||
Operating lease assets and liabilities, net | (5,742) | (3,397) | ||||
Net cash provided by operating activities | 72,658 | 117,965 | ||||
Investing Activities | ||||||
Purchases of property and equipment | (25,927) | (17,799) | ||||
Business acquisitions, net of cash acquired | $ (40,670) | (40,670) | (6,806) | $ (8,900) | ||
Proceeds from disposition of fixed assets | 414 | 2,429 | ||||
Net cash used in investing activities | (66,183) | (22,176) | ||||
Financing Activities | ||||||
Borrowings on revolving credit facility | 45,000 | 0 | ||||
Payments on revolving credit facility | (45,000) | 0 | ||||
Repayment of long-term debt | (6,075) | (394,110) | ||||
Issuance of long-term debt | 0 | 907 | ||||
Payment of deferred financing costs | 0 | (9,579) | ||||
Proceeds from options exercised | 1,378 | 0 | ||||
Repurchase and retirement of common stock | (152,146) | 0 | ||||
Proceeds from issuance of common stock upon initial public offering, net | 0 | 458,587 | ||||
Net cash (used in) provided by financing activities | (156,843) | 55,805 | ||||
Net (decrease) increase in cash and cash equivalents | (150,368) | 151,594 | ||||
Cash and cash equivalents, beginning of period | $ 193,130 | 343,498 | 155,801 | |||
Cash and cash equivalents, end of period | $ 193,130 | $ 307,395 | 193,130 | 307,395 | $ 343,498 | |
Supplemental Information: | ||||||
Interest | 19,409 | 29,549 | ||||
Income taxes, net of refunds received | $ 7,442 | $ 4,503 |
Business and Operations
Business and Operations | 9 Months Ended |
Jul. 02, 2022 | |
Accounting Policies [Abstract] | |
Business and Operations | Note 1—Business and Operations Leslie’s, Inc. (“Leslie’s,” “we,” “our,” “us,” “its,” or the “Company”) is the leading direct-to-consumer pool and spa care brand. We market and sell pool and spa supplies and related products and services, which primarily consist of maintenance items such as chemicals, equipment and parts, and cleaning accessories, as well as safety, recreational, and fitness-related products. We currently market our products through 979 c ompany-operated locations in 39 states and e-commerce websites. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Jul. 02, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2—Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation We prepared the accompanying interim condensed consolidated financial statements following United States generally accepted accounting principles (“GAAP”). The financial statements include all normal and recurring adjustments that are necessary for a fair presentation of our financial position and operating results. The interim condensed consolidated financial statements include the accounts of Leslie’s, Inc. and our subsidiaries. All significant intercompany accounts and transactions have been eliminated. These interim condensed consolidated financial statements and the related notes should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended October 2, 2021. Fiscal Periods We operate on a fiscal calendar that results in a fiscal year consisting of a 52- or 53-week period ending on the Saturday closest to September 30th. In a 52-week fiscal year, each quarter contains 13 weeks of operations; in a 53-week fiscal year, each of the first, second and third quarters includes 13 weeks of operations and the fourth quarter includes 14 weeks of operations. References to the three months ended July 2, 2022 and the three months ended July 3, 2021 refer to the 13 weeks ended July 2, 2022 and July 3, 2021, respectively. References to the nine months ended July 2, 2022 and the nine months ended July 3, 2021 refer to the 39 weeks ended July 2, 2022 and July 3, 2021, respectively. Use of Estimates To prepare financial statements that conform to GAAP, we make estimates and assumptions that affect the amounts reported in our financial statements and accompanying notes. Our most significant estimates relate to inventory obsolescence reserves, lease assumptions, vendor rebate programs, loyalty program, income taxes, sales returns, self-insurance, valuation of intangible assets and goodwill, and intangible asset impairment evaluations. We continually review our estimates and make adjustments as necessary, but actual results could be significantly different from what we expected when we made these estimates. Prior Period Reclassifications Reclassifications of certain immaterial prior period amounts have been made to conform to current period presentation. Fair Value Measurements We use fair value measurements to record fair value of certain assets and to estimate fair value of financial instruments no t recorded at fair value but required to be disclosed at fair value. As of July 2, 2022 and October 2, 2021, we held no assets that are required to be measured at fair value on a recurring basis. The fair value of our amended and restated term loan credit agreement (“Term Loan”) due in 2028 (see Note 9—Long-Term Debt, Net) was determined to b e $ 756.4 million and $ 802.9 million as of July 2, 2022 and October 2, 2021, respectively. These fair value estimates, determined to be Level 2, are subjective in nature and involve uncertainties and matters of judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect these estimates. The carrying amounts of cash, cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value due to the short-term maturity of these instruments. There were no transfers between levels in the fair value hierarchy during the three and nine months ended July 2, 2022 and July 3, 2021, respectively. Seasonality Our business is highly seasonal. Sales and earnings are highest during our third and fourth fiscal quarters, being April through September, and represent the peak months of swimming pool use. Sales are substantially lower during our first and second fiscal quarters. Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, Income Taxes (“Topic 740”): Simplifying the Accounting for Income Taxes. ASU 2019-12 removes certain exceptions related to intraperiod tax allocations, foreign subsidiaries and interim reporting that are present within existing GAAP rules. The ASU also provides updated guidance regarding the tax treatment of certain franchise taxes, goodwill and nontaxable entities, among other items. In addition, ASU 2019-12 clarifies that the effect of a change in tax laws or rates should be reflected in the annual effective tax rate computation during the interim period that includes the enactment date. We adopted ASU 2019-12 as of October 3, 2021, (as of the beginning of the current annual period) and its adoption did not have a material impact on our consolidated financial statements. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (“Topic 805”): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which includes certain amendments to improve, simplify, and provide consistency for recognition and measurement of acquired contract assets and contract liabilities from revenue contracts in a business combination. The amendments require that an acquirer recognize and measure such contract assets and contract liabilities under Topic 606, Revenue from Contracts with Customers, as if it had originated the contracts. The amendments also allow for election of certain practical expedients, which are applied on an acquisition-by-acquisition basis. The ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted, including for any interim period, and if elected, the amendments are applied retrospectively for any acquisitions that occurred in the fiscal year of interim adoption. We adopted ASU 2021-08 during the second quarter of fiscal 2022 and its adoption did not have a material impact on our consolidated financial statements. |
Business Combinations
Business Combinations | 9 Months Ended |
Jul. 02, 2022 | |
Business Combinations [Abstract] | |
Business Combinations | Note 3—Business Combinations The following acquisitions did not have a material impact on our financial position or results of operations. Our condensed consolidated financial statements include the results of operations of these acquisitions from the date of acquisition. The total purchase consideration was allocated to the tangible and intangible assets acquired and the liabilities assumed at their estimated fair values as of each acquisition date, with the excess recorded to goodwill. The goodwill resulting from these acquisitions is expected to be deductible for income tax purposes. During the measurement periods, which will not exceed one year from each closing, we will continue to obtain information to assist us in finalizing the acquisition date fair values. Any qualifying changes to our preliminary estimates will be recorded as adjustments to the respective assets and liabilities, with any residual amounts allocated to goodwill. Fiscal 2022 Acquisitions During the nine months ended July 2, 2022, we ac quired three busin esses for an aggregate purchase price of $ 40.7 million, inclusive of a contingent consideration of up to $ 1.0 million if certain performance metrics are achieved within one year of the closing date . These acquisitions expanded our pool and spa footprint and a dded 18 new r etail locations. The following table sets forth the preliminary allocation of these acquisitions, net of immaterial measurement period adjustments, in the aggregate (in thousands): Total Total purchase consideration, net of cash acquired $ 40,670 Fair value of assets acquired and liabilities assumed: Inventories 16,706 Finite-lived intangible assets 4,500 Other assets and liabilities, net ( 3,018 ) Total assets acquired, net of liabilities assumed 18,188 Goodwill $ 22,482 Fiscal 2021 Acquisitions In fiscal 2021, we acquired three businesses for an aggregate purchase price of $ 8.9 million. These acquisitions consisted of retailers of supplies and services for hot tubs and swim spas and added eight locations. During the nine months ended July 2, 2022, we recorded measurement period adjustments resulting in an increase in goodwill of $ 1.7 million related to these acquisitions. The purchase accounting for two of the three acquisitions is complete. |
Goodwill and Other Intangibles,
Goodwill and Other Intangibles, Net | 9 Months Ended |
Jul. 02, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles, Net | Note 4 —Goodwill and Other Intangibles, Net Goodwill The following table details the changes in goodwill (in thousands): July 2, 2022 October 2, 2021 July 3, 2021 Balance at beginning of the period $ 101,114 $ 93,295 $ 93,295 Acquisitions, net of measurement period adjustments (1) 24,160 7,819 5,374 Balance at the end of the period $ 125,274 $ 101,114 $ 98,669 (1) Includes immaterial measurement period adjustments related to acquisitions completed in fiscal 2021. Other Intangible Assets Other intangible assets consisted of the following as of July 2, 2022 (in thousands, except weighted average remaining useful life): Weighted Gross Accumulated Net Trade name and trademarks (finite life) 9.5 $ 10,440 $ ( 5,505 ) $ 4,935 Trade name and trademarks (indefinite life) Indefinite 17,750 — 17,750 Non-compete agreements 6.7 8,683 ( 7,328 ) 1,355 Consumer relationships 6.0 19,000 ( 12,926 ) 6,074 Other intangibles 6.4 6,620 ( 6,345 ) 275 Total $ 62,493 $ ( 32,104 ) $ 30,389 Other intangible assets consisted of the following as of October 2, 2021 (in thousands, except weighted average remaining useful life): Weighted Gross Accumulated Net Trade name and trademarks (finite life) 6.6 $ 5,940 $ ( 5,274 ) $ 666 Trade name and trademarks (indefinite life) Indefinite 17,750 — 17,750 Non-compete agreements 7.5 8,633 ( 7,123 ) 1,510 Consumer relationships 6.4 19,000 ( 11,688 ) 7,312 Other intangibles 7.0 6,620 ( 5,952 ) 668 Total $ 57,943 $ ( 30,037 ) $ 27,906 Other intangible assets consisted of the following as of July 3, 2021 (in thousands, except weighted average remaining useful life): Weighted Gross Accumulated Net Trade name and trademarks (finite life) 2.9 $ 5,940 $ ( 5,236 ) $ 704 Trade name and trademarks (indefinite life) Indefinite 17,750 — 17,750 Non-compete agreements 7.4 9,333 ( 7,174 ) 2,159 Consumer relationships 6.5 19,000 ( 11,276 ) 7,724 Other intangibles 7.9 6,620 ( 5,886 ) 734 Total $ 58,643 $ ( 29,572 ) $ 29,071 Amortization expen se was $ 0.7 million for the three months ended July 2, 2022 and July 3, 2021, respectively. Amortization expense was $ 2.1 million and $ 1.0 million for the nine months ended July 2, 2022, and July 3, 2021, respectivel y. No impairment of goodwill or other intangible assets was recorded during the three and nine months ended July 2, 2022, a nd July 3, 2021, respectively. The following table summarizes the estimated future amortization expense related to finite-lived intangible assets on our condensed consolidated balance sheet as of July 2, 2022 (in thousands): Amount Remainder of fiscal 2022 $ 649 2023 2,373 2024 1,735 2025 1,638 2026 1,392 Thereafter 4,852 Total $ 12,639 |
Accounts and Other Receivables,
Accounts and Other Receivables, Net | 9 Months Ended |
Jul. 02, 2022 | |
Receivables [Abstract] | |
Accounts and Other Receivables, Net | Note 5—Accounts and Other Receivables, Net Accounts and other receivables, net consisted of the following (in thousands): July 2, 2022 October 2, 2021 July 3, 2021 Vendor and other rebates receivable $ 27,936 $ 23,222 $ 30,696 Customer receivables 17,470 13,473 14,493 Other receivables 2,985 4,621 3,236 Allowance for doubtful accounts ( 1,125 ) ( 2,456 ) ( 577 ) Total $ 47,266 $ 38,860 $ 47,848 |
Inventories
Inventories | 9 Months Ended |
Jul. 02, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 6—Inventories Inventories consisted of the following (in thousands): July 2, 2022 October 2, 2021 July 3, 2021 Raw materials $ 9,927 $ 4,244 $ 5,382 Finished goods 351,464 194,545 219,144 Total $ 361,391 $ 198,789 $ 224,526 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 9 Months Ended |
Jul. 02, 2022 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid Expenses and Other Current Assets | Note 7—Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): July 2, 2022 October 2, 2021 July 3, 2021 Prepaid expenses $ 19,764 $ 12,814 $ 18,772 Other current assets 10,778 7,750 9,843 Total $ 30,542 $ 20,564 $ 28,615 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 9 Months Ended |
Jul. 02, 2022 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Note 8—Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following (in thousands): July 2,2022 October 2, 2021 July 3, 2021 Accounts payable $ 218,953 $ 100,960 $ 155,525 Accrued payroll and employee benefits 18,258 40,071 27,581 Customer deposits 15,134 19,861 17,593 Interest 4,496 4,898 4,919 Inventory related accruals 21,791 12,444 14,492 Loyalty and deferred revenue 6,392 6,685 5,897 Sales taxes 16,037 13,975 18,922 Self-insurance reserves 11,566 7,679 6,340 Other accrued liabilities 18,254 27,024 20,462 Total $ 330,881 $ 233,597 $ 271,731 As of July 2, 2022 and October 2, 2021 there were capital expenditures included in o ther accrued liabilities of $ 0.3 million and $ 1.5 million, respectively. As of July 3, 2021 there were no capital expenditures included in other accrued liabilities. |
Long-Term Debt, Net
Long-Term Debt, Net | 9 Months Ended |
Jul. 02, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt, Net | Note 9—Long-Term Debt, Net Our long-term debt, net consisted of the following (in thousands, except interest rates): Effective (1) July 2, 2022 October 2, 2021 July 3, 2021 Term Loan—due on March 9, 2028 3.02 % (2) $ 799,875 $ 805,950 $ 807,975 Revolving Credit Facility 1.25 % (3) — — — Total long-term debt 799,875 805,950 807,975 Less: current portion of long-term debt ( 8,100 ) ( 8,100 ) ( 8,100 ) Less: unamortized discount ( 2,926 ) ( 3,285 ) ( 3,402 ) Less: deferred financing charges ( 7,527 ) ( 8,440 ) ( 8,742 ) Total long-term debt, net $ 781,322 $ 786,125 $ 787,731 (1) Effective interest rates as of July 2, 2022. (2) Carries interest at a specified margin over LIBOR between 2.50 % and 2.75 % with a minimum LIBOR of 0.50 % . (3) Carries interest at a specific margin between 0.25 % and 0.75 % with respect to Base Rate loans and between 1.25 % and 1.75 % with respect to Eurodollar Rate loans. Term Loan In March 2021, we entered into an amendment to our Term Loan. The amended Term Loan provides for an $ 810.0 million secured term loan facility with a maturity date of March 9, 2028 . Borrowings under the Term Loan have an initial applicable rate, at our option of (i ) 2.75 % for loans that are LIBOR loans and (ii) 1.75 % of loans that are ABR loans. The applicable rate of the Term Loan is based on our first lien leverage ratio as follows: (a) if the first lien leverage ratio is greater than 2.75 to 1.00 , t he applicable rate will be 2.75 % for LIBOR loans and 1.75 % for ABR loans; and (b) the first lien leverage ratio is less than or equal to 2.75 to 1.00 , the applicable rate will be 2.50 % for LIBOR loans and 1.50 % for ABR loans. For LIBOR loans, the loans will bear interest at the adjusted LIBOR rate plus the applicable rate, where the adjusted LIBOR rate will not be less than 0.50 %. As a result of the amendment during the nine months ended July 3, 2021, we recognized a $ 1.9 million loss on debt extinguishment on our condensed consolidated statements of operations. Revolving Credit Facility In April 2021, we entered into Amendment No. 5 to our $ 200.0 million credit facility (the “Revolving Credit Facility”) maturing on August 13, 2025 (the “Amendment”). The Amendment has (i) an applicable margin on the Base Rate loans with a range of 0.25 % to 0.75 %, (ii) an applicable margin on the Eurodollar Rate loans with a range of 1.25 % to 1.75 %, (iii) a LIBOR floor of 0 %, and (iv) a commitment fee rate of 0.25 %. We are also obligated to pay a commission on all outstanding letters of credit as well as customary administrative, issuance, fronting, amen dment, payment, and negotiation fees. As of July 2, 2022, October 2, 2021 and July 3, 2021, no amounts were outstanding on the Revolving Credit Facility, respectively. The amount available was reduced by $ 10.0 million of existing standby letters of credit as of July 2, 2022. Senior Unsecured Notes The senior unsecured notes principal of $ 390.0 million was paid in full on November 3, 2020, resulting in a loss on debt extinguishment of $ 7.3 million on our condensed consolidated statements of operations for the nine months ended July 3, 2021. Representations and Covenants Substantially all of our assets are pledged as collateral to secure our indebtedness. The Term Loan and the Revolving Credit Facility do not require us to comply with any financial covenants. The Term Loan and Revolving Credit Facility contain customary representations and warranties, covenants, and conditions to borrowing. No event of default had occurred as of July 2, 2022, October 2, 2021, or July 3, 2021. Future Debt Maturities The following table summarizes the debt maturities and scheduled principal repayments of our indebtedness as o f July 2, 2022 (in thousands): Amount Remainder of fiscal 2022 $ 2,025 2023 8,100 2024 6,075 2025 10,125 2026 8,100 Thereafter 765,450 Total $ 799,875 |
Income Taxes
Income Taxes | 9 Months Ended |
Jul. 02, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10—Income Taxes Our effective income tax rate was 24.9 % for the nine months ended July 2, 2022, compared to 20.9 % for the nine months ended July 3, 2021. The difference between the statutory rate and our effective rate for the nine months ended July 2, 2022 was primarily attributable to state taxes. The difference between the statutory rate and our effective rate for the nine months ended July 3, 2021 was primarily attributable to a reduction in the valuation allowance for our interest limitation carryforward and net income tax benefits attributable to equity-based compensation awards. Our effective income tax rate can fluctuate due to factors including valuation allowances, changes in tax laws, federal and state audits, and the impact of other discrete items. |
Commitments & Contingencies
Commitments & Contingencies | 9 Months Ended |
Jul. 02, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments & Contingencies | Note 11—Commitments & Contingencies Contingencies We are defendants in lawsuits or potential claims encountered in the normal course of business. When the potential liability from a matter can be estimated and the loss is considered probable, we record the estimated loss. Due to uncertainties related to the resolution of lawsuits, investigations and claims, the ultimate outcome may differ from the estimates. We do not expect that the resolutions of any of these matters will have a material effect to our condensed consolidated financial position or results of operations. We did not record any material loss contingencies as of July 2, 2022, October 2, 2021, and July 3, 2021, respectively. Our workers’ compensation insurance program, general liability insurance program, and employee group medical plan have self-insurance retention features of up to $ 0.4 milli on per event as of July 2, 2022 and October 2, 2021. We had standby letters of credit outstanding in the amounts of $ 10.0 million as of July 2, 2022 for the purpose of securing such obligations under our workers’ compensation self-insurance programs. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Jul. 02, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 12—Related Party Transactions In February 2017, we entered into a management services agreement with our private equity sponsors in connection with our acquisition in February 2017. The management services agreement provided that we pay an annual fee for management and advisory services to us and our affiliates, including general management consulting services, support and analysis with respect to financing alternatives and strategic planning functions. The management services agreement terminated in October 2020 in connection with the completion of our initial public offering (“IPO” ). During the nine months ended July 3, 2021, we paid or accrued management fees in the amount of $ 0.4 million. On December 14, 2021, the Company entered into a share repurchase agreement with Bubbles Investor Aggregator, L.P. and Explorer Investment Pte. Ltd. (together, the “Selling Stockholders”), each a greater than 5 % beneficial owner of the Company’s common stock, providing for the repurchase by the Company from the Selling Stockholders of an aggregate of 7.5 million shares of common stock, conditioned on the closing of a contemporaneous secondary public offering (the “Offering”). The price per share of repurchased common stock paid by the Company was $ 20.25 , which represents the per share price at which shares of common stock were sold to the public in the Offering less the underwriting discount. The repurchase transaction closed on December 16, 2021. See Note 13—Share Repurchase Program for detailed information regarding the repurchase program. |
Share Repurchase Program
Share Repurchase Program | 9 Months Ended |
Jul. 02, 2022 | |
Equity [Abstract] | |
Share Repurchase Program | Note 13—Share Repurchase Program On December 3, 2021, the Board of Directors authorized a share repurchase program for up to an aggregate amount of $ 300 million of the Company’s outstanding shares of common stock over a period of three years . The amount and timing of repurchases depends on a number of factors, including the Company’s financial condition, capital requirements, cash flows, results of operations, future business prospects, and other factors our management may deem relevant. The timing, volume, and nature of repurchases are subject to market conditions, applicable securities laws and other factors and may be amended, suspended, or discontinued at any time. Shares may be repurchased from time to time on the open market, in privately negotiated transactions, or otherwise. On December 16, 2021, the Company repurchased and retired 7.5 million shares of common stock at a price per share of $ 20.25 . The Company paid $ 151.9 million ($ 152.1 million including offering costs) to fund the share repurchase using existing cash on hand. The Co mpany accounted for the share repurchase and retirement under the cost method by deducting its par value from common stock, reducing additional paid-in-capital by $ 127.5 million using the share price when the stock was originally issued, and the remaining excess cost of $ 24.4 million increased retained deficit. As of July 2, 2022, $ 148.1 million remains available for future purchases under the program. The following table presents information about our repurchases of common stock (in thousands): Three Months Ended Nine Months Ended July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021 Total number of shares repurchased — — 7,500 — Total amount paid for shares repurchased $ — $ — $ 151,875 $ — |
Equity-Based Compensation
Equity-Based Compensation | 9 Months Ended |
Jul. 02, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Equity-Based Compensation | Note 14—Equity-Based Compensation Equity-Based Compensation 2020 Omnibus Incentive Plan In October 2020, we adopted the Leslie’s, Inc. 2020 Omnibus Incentive Plan (the “Plan”). The Plan provides for the grant of awards such as stock options to purchase Leslie’s common stock (each, a “Stock Option”) and restricted stock units (“RSUs”) which may settle in Leslie’s, Inc. common stock to our directors, executives and eligible employees of the Company. Stock Options granted under the Plan generally expire ten years from the date of grant and consist of Stock Options that vest upon the satisfaction of time-based requirements (“Service Stock Option”) and performance-based Stock Options that vest upon satisfaction of a performance-based requirement (“Performance Stock Options”). RSUs consist of grants that vest ratably upon the satisfaction of time-based requirements (“Service RSU”) and performance-based RSUs that vest upon satisfaction of performance-based requirements (“Performance RSU”). In each case, vesting of the Company’s outstanding and unvested Stock Options and RSUs is contingent upon the holder’s continued service through the date of each applicable vesting event. As of July 2, 2022, we had approximately 7.5 million shares of common stock available for future grants under the Plan. As of July 2, 2022, the aggregate unamortized value of all outstanding equity-based compensation awards was approximately $ 31.5 million, which is expected to be recognized over a weighted average period of approximately 2.6 years. Stock Options The following tables summarizes our Stock Option activity under the Plan during the nine months ended (in thousands, except per share amounts): July 2, 2022 Number of Options Weighted Average Outstanding, Beginning 4,877 $ 18.22 Granted — — Exercised ( 81 ) 17.00 Forfeited/Expired ( 414 ) 18.20 Balance, Ending 4,382 $ 18.24 Vested as of July 2, 2022 (1) 1,346 $ 18.16 (1) Includes 550,736 sto ck options that were subject to the Company’s achievement of the fiscal 2021 net income target which was deemed to have been met during the nine months ended July 2, 2022 . As of July 2, 2022 Aggregate intrinsic value of options outstanding $ — Unamortized value of unvested stock options $ 10,781 Weighted average period (years) that expense is expected to be recognized 2.0 Weighted average remaining contractual life (years) for options outstanding 8.8 Restricted Stock Units The following table summarizes our RSU activity under the Plan during the nine months ended (in thousands, except per share amounts): July 2, 2022 Number of RSUs Weighted Average Outstanding, Beginning 3,135 $ 6.90 Granted 504 19.73 Vested ( 626 ) 8.35 Forfeited ( 317 ) 8.82 Balance, Ending 2,696 $ 8.74 As of July 2, 2022 Unamortized value of unvested RSUs $ 20,750 Weighted average period (years) expense is expected to be recognized 3.0 During the three and nine months ended July 2, 2022, equity-based compensation expens e was $ 2.9 million and $ 8.5 million, respectively, and includes Company related payroll tax expense. During the three and nine months ended July 3, 2021, equity-based compensation expense was $ 6.5 million and $ 20.6 million, respectively, and includ es $ 0.4 million and $ 11.7 million associat ed with the vesting of performance-based equity units as a result of the Company’s IPO, respectively. These co sts are reported in selling, general and administrative expenses (“SG&A”) in our condensed consolidated statements of operations. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Jul. 02, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 15—Earnings Per Share The following is a reconciliation of basic weighted average common shares outstanding to diluted weighted average common shares outstanding ( in thousands, except per share amounts): Three Months Ended Nine Months Ended July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021 Numerator: Net income $ 122,986 $ 118,802 $ 101,095 $ 82,093 Denominator: Weighted average shares outstanding - basic 182,937 188,264 184,707 184,021 Effect of dilutive securities: Stock options 1 2,792 52 1,914 RSUs 1,783 3,144 1,936 3,668 Weighted average shares outstanding - diluted 184,721 194,200 186,695 189,603 Basic earnings per share $ 0.67 $ 0.63 $ 0.55 $ 0.45 Diluted earnings per share $ 0.67 $ 0.61 $ 0.54 $ 0.43 The following number of weighted-average potentially dilutive shares were excluded from the calculation of diluted earnings per share because the effect of including such shares would have been antidilutive (in thousands): Three Months Ended Nine Months Ended July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021 Stock options 3,967 290 1,742 218 RSUs 563 — 551 116 Total 4,530 290 2,293 334 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Jul. 02, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation We prepared the accompanying interim condensed consolidated financial statements following United States generally accepted accounting principles (“GAAP”). The financial statements include all normal and recurring adjustments that are necessary for a fair presentation of our financial position and operating results. The interim condensed consolidated financial statements include the accounts of Leslie’s, Inc. and our subsidiaries. All significant intercompany accounts and transactions have been eliminated. These interim condensed consolidated financial statements and the related notes should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended October 2, 2021. |
Fiscal Periods | Fiscal Periods We operate on a fiscal calendar that results in a fiscal year consisting of a 52- or 53-week period ending on the Saturday closest to September 30th. In a 52-week fiscal year, each quarter contains 13 weeks of operations; in a 53-week fiscal year, each of the first, second and third quarters includes 13 weeks of operations and the fourth quarter includes 14 weeks of operations. References to the three months ended July 2, 2022 and the three months ended July 3, 2021 refer to the 13 weeks ended July 2, 2022 and July 3, 2021, respectively. References to the nine months ended July 2, 2022 and the nine months ended July 3, 2021 refer to the 39 weeks ended July 2, 2022 and July 3, 2021, respectively. |
Use of Estimates | Use of Estimates To prepare financial statements that conform to GAAP, we make estimates and assumptions that affect the amounts reported in our financial statements and accompanying notes. Our most significant estimates relate to inventory obsolescence reserves, lease assumptions, vendor rebate programs, loyalty program, income taxes, sales returns, self-insurance, valuation of intangible assets and goodwill, and intangible asset impairment evaluations. We continually review our estimates and make adjustments as necessary, but actual results could be significantly different from what we expected when we made these estimates. |
Prior Period Reclassifications | Prior Period Reclassifications Reclassifications of certain immaterial prior period amounts have been made to conform to current period presentation. |
Fair Value Measurements | Fair Value Measurements We use fair value measurements to record fair value of certain assets and to estimate fair value of financial instruments no t recorded at fair value but required to be disclosed at fair value. As of July 2, 2022 and October 2, 2021, we held no assets that are required to be measured at fair value on a recurring basis. The fair value of our amended and restated term loan credit agreement (“Term Loan”) due in 2028 (see Note 9—Long-Term Debt, Net) was determined to b e $ 756.4 million and $ 802.9 million as of July 2, 2022 and October 2, 2021, respectively. These fair value estimates, determined to be Level 2, are subjective in nature and involve uncertainties and matters of judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect these estimates. The carrying amounts of cash, cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value due to the short-term maturity of these instruments. There were no transfers between levels in the fair value hierarchy during the three and nine months ended July 2, 2022 and July 3, 2021, respectively. |
Seasonality | Seasonality Our business is highly seasonal. Sales and earnings are highest during our third and fourth fiscal quarters, being April through September, and represent the peak months of swimming pool use. Sales are substantially lower during our first and second fiscal quarters. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, Income Taxes (“Topic 740”): Simplifying the Accounting for Income Taxes. ASU 2019-12 removes certain exceptions related to intraperiod tax allocations, foreign subsidiaries and interim reporting that are present within existing GAAP rules. The ASU also provides updated guidance regarding the tax treatment of certain franchise taxes, goodwill and nontaxable entities, among other items. In addition, ASU 2019-12 clarifies that the effect of a change in tax laws or rates should be reflected in the annual effective tax rate computation during the interim period that includes the enactment date. We adopted ASU 2019-12 as of October 3, 2021, (as of the beginning of the current annual period) and its adoption did not have a material impact on our consolidated financial statements. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (“Topic 805”): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which includes certain amendments to improve, simplify, and provide consistency for recognition and measurement of acquired contract assets and contract liabilities from revenue contracts in a business combination. The amendments require that an acquirer recognize and measure such contract assets and contract liabilities under Topic 606, Revenue from Contracts with Customers, as if it had originated the contracts. The amendments also allow for election of certain practical expedients, which are applied on an acquisition-by-acquisition basis. The ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted, including for any interim period, and if elected, the amendments are applied retrospectively for any acquisitions that occurred in the fiscal year of interim adoption. We adopted ASU 2021-08 during the second quarter of fiscal 2022 and its adoption did not have a material impact on our consolidated financial statements. |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Jul. 02, 2022 | |
Business Combinations [Abstract] | |
Schedule of Preliminary Allocation of Acquisitions, Net of Immaterial Measurement Period Adjustments in Aggregate | The following table sets forth the preliminary allocation of these acquisitions, net of immaterial measurement period adjustments, in the aggregate (in thousands): Total Total purchase consideration, net of cash acquired $ 40,670 Fair value of assets acquired and liabilities assumed: Inventories 16,706 Finite-lived intangible assets 4,500 Other assets and liabilities, net ( 3,018 ) Total assets acquired, net of liabilities assumed 18,188 Goodwill $ 22,482 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles, Net (Tables) | 9 Months Ended |
Jul. 02, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill | The following table details the changes in goodwill (in thousands): July 2, 2022 October 2, 2021 July 3, 2021 Balance at beginning of the period $ 101,114 $ 93,295 $ 93,295 Acquisitions, net of measurement period adjustments (1) 24,160 7,819 5,374 Balance at the end of the period $ 125,274 $ 101,114 $ 98,669 Includes immaterial measurement period adjustments related to acquisitions completed in fiscal 2021. |
Summary of Other Intangible Assets | Other intangible assets consisted of the following as of July 2, 2022 (in thousands, except weighted average remaining useful life): Weighted Gross Accumulated Net Trade name and trademarks (finite life) 9.5 $ 10,440 $ ( 5,505 ) $ 4,935 Trade name and trademarks (indefinite life) Indefinite 17,750 — 17,750 Non-compete agreements 6.7 8,683 ( 7,328 ) 1,355 Consumer relationships 6.0 19,000 ( 12,926 ) 6,074 Other intangibles 6.4 6,620 ( 6,345 ) 275 Total $ 62,493 $ ( 32,104 ) $ 30,389 Other intangible assets consisted of the following as of October 2, 2021 (in thousands, except weighted average remaining useful life): Weighted Gross Accumulated Net Trade name and trademarks (finite life) 6.6 $ 5,940 $ ( 5,274 ) $ 666 Trade name and trademarks (indefinite life) Indefinite 17,750 — 17,750 Non-compete agreements 7.5 8,633 ( 7,123 ) 1,510 Consumer relationships 6.4 19,000 ( 11,688 ) 7,312 Other intangibles 7.0 6,620 ( 5,952 ) 668 Total $ 57,943 $ ( 30,037 ) $ 27,906 Other intangible assets consisted of the following as of July 3, 2021 (in thousands, except weighted average remaining useful life): Weighted Gross Accumulated Net Trade name and trademarks (finite life) 2.9 $ 5,940 $ ( 5,236 ) $ 704 Trade name and trademarks (indefinite life) Indefinite 17,750 — 17,750 Non-compete agreements 7.4 9,333 ( 7,174 ) 2,159 Consumer relationships 6.5 19,000 ( 11,276 ) 7,724 Other intangibles 7.9 6,620 ( 5,886 ) 734 Total $ 58,643 $ ( 29,572 ) $ 29,071 |
Summary of Estimated Future Amortization Expense Related to Finite-Lived Intangible Assets | The following table summarizes the estimated future amortization expense related to finite-lived intangible assets on our condensed consolidated balance sheet as of July 2, 2022 (in thousands): Amount Remainder of fiscal 2022 $ 649 2023 2,373 2024 1,735 2025 1,638 2026 1,392 Thereafter 4,852 Total $ 12,639 |
Accounts and Other Receivable_2
Accounts and Other Receivables, Net (Tables) | 9 Months Ended |
Jul. 02, 2022 | |
Receivables [Abstract] | |
Schedule of Accounts and Other Receivables, Net | Accounts and other receivables, net consisted of the following (in thousands): July 2, 2022 October 2, 2021 July 3, 2021 Vendor and other rebates receivable $ 27,936 $ 23,222 $ 30,696 Customer receivables 17,470 13,473 14,493 Other receivables 2,985 4,621 3,236 Allowance for doubtful accounts ( 1,125 ) ( 2,456 ) ( 577 ) Total $ 47,266 $ 38,860 $ 47,848 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Jul. 02, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following (in thousands): July 2, 2022 October 2, 2021 July 3, 2021 Raw materials $ 9,927 $ 4,244 $ 5,382 Finished goods 351,464 194,545 219,144 Total $ 361,391 $ 198,789 $ 224,526 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 9 Months Ended |
Jul. 02, 2022 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): July 2, 2022 October 2, 2021 July 3, 2021 Prepaid expenses $ 19,764 $ 12,814 $ 18,772 Other current assets 10,778 7,750 9,843 Total $ 30,542 $ 20,564 $ 28,615 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 9 Months Ended |
Jul. 02, 2022 | |
Payables And Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consisted of the following (in thousands): July 2,2022 October 2, 2021 July 3, 2021 Accounts payable $ 218,953 $ 100,960 $ 155,525 Accrued payroll and employee benefits 18,258 40,071 27,581 Customer deposits 15,134 19,861 17,593 Interest 4,496 4,898 4,919 Inventory related accruals 21,791 12,444 14,492 Loyalty and deferred revenue 6,392 6,685 5,897 Sales taxes 16,037 13,975 18,922 Self-insurance reserves 11,566 7,679 6,340 Other accrued liabilities 18,254 27,024 20,462 Total $ 330,881 $ 233,597 $ 271,731 |
Long-Term Debt, Net (Tables)
Long-Term Debt, Net (Tables) | 9 Months Ended |
Jul. 02, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt, Net | Our long-term debt, net consisted of the following (in thousands, except interest rates): Effective (1) July 2, 2022 October 2, 2021 July 3, 2021 Term Loan—due on March 9, 2028 3.02 % (2) $ 799,875 $ 805,950 $ 807,975 Revolving Credit Facility 1.25 % (3) — — — Total long-term debt 799,875 805,950 807,975 Less: current portion of long-term debt ( 8,100 ) ( 8,100 ) ( 8,100 ) Less: unamortized discount ( 2,926 ) ( 3,285 ) ( 3,402 ) Less: deferred financing charges ( 7,527 ) ( 8,440 ) ( 8,742 ) Total long-term debt, net $ 781,322 $ 786,125 $ 787,731 (1) Effective interest rates as of July 2, 2022. (2) Carries interest at a specified margin over LIBOR between 2.50 % and 2.75 % with a minimum LIBOR of 0.50 % . Carries interest at a specific margin between 0.25 % and 0.75 % with respect to Base Rate loans and between 1.25 % and 1.75 % with respect to Eurodollar Rate loans. |
Schedule of Debt Maturities and Principal Repayments of Indebtedness | The following table summarizes the debt maturities and scheduled principal repayments of our indebtedness as o f July 2, 2022 (in thousands): Amount Remainder of fiscal 2022 $ 2,025 2023 8,100 2024 6,075 2025 10,125 2026 8,100 Thereafter 765,450 Total $ 799,875 |
Share Repurchase Program (Table
Share Repurchase Program (Tables) | 9 Months Ended |
Jul. 02, 2022 | |
Equity [Abstract] | |
Schedule of Repurchases of Common Stock | The following table presents information about our repurchases of common stock (in thousands): Three Months Ended Nine Months Ended July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021 Total number of shares repurchased — — 7,500 — Total amount paid for shares repurchased $ — $ — $ 151,875 $ — |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 9 Months Ended |
Jul. 02, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Options Activity | The following tables summarizes our Stock Option activity under the Plan during the nine months ended (in thousands, except per share amounts): July 2, 2022 Number of Options Weighted Average Outstanding, Beginning 4,877 $ 18.22 Granted — — Exercised ( 81 ) 17.00 Forfeited/Expired ( 414 ) 18.20 Balance, Ending 4,382 $ 18.24 Vested as of July 2, 2022 (1) 1,346 $ 18.16 (1) Includes 550,736 sto ck options that were subject to the Company’s achievement of the fiscal 2021 net income target which was deemed to have been met during the nine months ended July 2, 2022 . As of July 2, 2022 Aggregate intrinsic value of options outstanding $ — Unamortized value of unvested stock options $ 10,781 Weighted average period (years) that expense is expected to be recognized 2.0 Weighted average remaining contractual life (years) for options outstanding 8.8 |
Summary of RSU Activity under Plan | The following table summarizes our RSU activity under the Plan during the nine months ended (in thousands, except per share amounts): July 2, 2022 Number of RSUs Weighted Average Outstanding, Beginning 3,135 $ 6.90 Granted 504 19.73 Vested ( 626 ) 8.35 Forfeited ( 317 ) 8.82 Balance, Ending 2,696 $ 8.74 As of July 2, 2022 Unamortized value of unvested RSUs $ 20,750 Weighted average period (years) expense is expected to be recognized 3.0 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Jul. 02, 2022 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation of Basic Weighted Average Common Shares Outstanding to Diluted Weighted Average Common Shares Outstanding | The following is a reconciliation of basic weighted average common shares outstanding to diluted weighted average common shares outstanding ( in thousands, except per share amounts): Three Months Ended Nine Months Ended July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021 Numerator: Net income $ 122,986 $ 118,802 $ 101,095 $ 82,093 Denominator: Weighted average shares outstanding - basic 182,937 188,264 184,707 184,021 Effect of dilutive securities: Stock options 1 2,792 52 1,914 RSUs 1,783 3,144 1,936 3,668 Weighted average shares outstanding - diluted 184,721 194,200 186,695 189,603 Basic earnings per share $ 0.67 $ 0.63 $ 0.55 $ 0.45 Diluted earnings per share $ 0.67 $ 0.61 $ 0.54 $ 0.43 |
Schedule of Antidilutive Securities Excluded from Calculation of Diluted Earnings Per Share | The following number of weighted-average potentially dilutive shares were excluded from the calculation of diluted earnings per share because the effect of including such shares would have been antidilutive (in thousands): Three Months Ended Nine Months Ended July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021 Stock options 3,967 290 1,742 218 RSUs 563 — 551 116 Total 4,530 290 2,293 334 |
Business and Operations - Addit
Business and Operations - Additional Information (Details) | 9 Months Ended |
Jul. 02, 2022 Location State | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of company-operated locations | Location | 979 |
Number of states in which entity operates | State | 39 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | Jul. 02, 2022 | Oct. 02, 2021 | Jul. 03, 2021 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Fair value, assets, level 1 to level 2 transfers, amount | $ 0 | $ 0 | |
Fair value, assets, level 2 to level 1 transfers, amount | 0 | 0 | |
Fair value, liabilities, level 1 to level 2 transfers, amount | 0 | 0 | |
Fair value, liabilities, level 2 to level 1 transfers, amount | 0 | $ 0 | |
Level 2 | Term Loan due in 2028 | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Fair value of term loan | 756,400,000 | $ 802,900,000 | |
Recurring Basis | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Assets measured at fair value | $ 0 | $ 0 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Jul. 03, 2022 USD ($) | Jul. 02, 2022 USD ($) Number Location | Jul. 03, 2021 USD ($) | Oct. 02, 2021 USD ($) Number Location | |
Business Acquisition [Line Items] | ||||
Business acquisitions, net of cash acquired | $ (40,670) | $ (40,670) | $ (6,806) | $ (8,900) |
2021 Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Number of Businesses Acquired | Number | 3 | |||
2022 Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Number of Businesses Acquired | Number | 3 | |||
Business acquisitions, net of cash acquired | $ (40,700) | |||
Number of locations in which assets acquired | Location | 18 | |||
Contingent consideration | $ 1,000 | |||
Denver, Colorado, Medford, Oregon and Washington, DC | 2021 Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Number of locations in which assets acquired | Location | 8 | |||
Accounting adjustments of increase in goodwill | $ 1,700 |
Business Combinations - Schedul
Business Combinations - Schedule of Preliminary Allocation of Acquisitions, Net of Immaterial Measurement Period Adjustments in Aggregate (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||||||
Jul. 03, 2022 | Jul. 02, 2022 | Jul. 03, 2021 | Oct. 02, 2021 | [1] | Oct. 02, 2021 | |||
Business Acquisition, Pro Forma Information [Abstract] | ||||||||
Total purchase consideration, net of cash acquired | $ 40,670 | $ 40,670 | $ 6,806 | $ 8,900 | ||||
Fair value of assets acquired and liabilities assumed: | ||||||||
Inventories | 16,706 | |||||||
Finite-lived intangible assets | 4,500 | |||||||
Other assets and liabilities, net | (3,018) | |||||||
Total assets acquired, net of liabilities assumed | 18,188 | |||||||
Goodwill | $ 22,482 | $ 24,160 | [1] | $ 5,374 | [1] | $ 7,819 | ||
[1] Includes immaterial measurement period adjustments related to acquisitions completed in fiscal 2021. |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles, Net - Summary of Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||||
Jul. 03, 2022 | Jul. 02, 2022 | Jul. 03, 2021 | Oct. 02, 2021 | ||||
Goodwill [Roll Forward] | |||||||
Balance at beginning of the period | $ 125,274 | $ 101,114 | $ 93,295 | $ 93,295 | |||
Acquisitions, net of measurement period adjustments | $ 22,482 | 24,160 | [1] | 5,374 | [1] | 7,819 | [1] |
Balance at the end of the period | $ 125,274 | $ 98,669 | $ 101,114 | ||||
[1] Includes immaterial measurement period adjustments related to acquisitions completed in fiscal 2021. |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles, Net - Summary of Other Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Jul. 02, 2022 | Jul. 03, 2021 | Oct. 02, 2021 | |
Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Net Carrying Amount, Finite Life | $ 12,639 | ||
Gross Carrying Value | 62,493 | $ 58,643 | $ 57,943 |
Accumulated Amortization | (32,104) | (29,572) | (30,037) |
Net Carrying Amount | $ 30,389 | $ 29,071 | $ 27,906 |
Trade Name and Trademarks | |||
Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Weighted Average Remaining Useful Life, Finite Life | 9 years 6 months | 2 years 10 months 24 days | 6 years 7 months 6 days |
Gross Carrying Value, Finite Life | $ 10,440 | $ 5,940 | $ 5,940 |
Accumulated Amortization, Finite Life | (5,505) | (5,236) | (5,274) |
Net Carrying Amount, Finite Life | $ 4,935 | $ 704 | $ 666 |
Non-compete Agreements | |||
Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Weighted Average Remaining Useful Life, Finite Life | 6 years 8 months 12 days | 7 years 4 months 24 days | 7 years 6 months |
Gross Carrying Value, Finite Life | $ 8,683 | $ 9,333 | $ 8,633 |
Accumulated Amortization, Finite Life | (7,328) | (7,174) | (7,123) |
Net Carrying Amount, Finite Life | $ 1,355 | $ 2,159 | $ 1,510 |
Consumer Relationships | |||
Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Weighted Average Remaining Useful Life, Finite Life | 6 years | 6 years 6 months | 6 years 4 months 24 days |
Gross Carrying Value, Finite Life | $ 19,000 | $ 19,000 | $ 19,000 |
Accumulated Amortization, Finite Life | (12,926) | (11,276) | (11,688) |
Net Carrying Amount, Finite Life | $ 6,074 | $ 7,724 | $ 7,312 |
Other Intangibles | |||
Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Weighted Average Remaining Useful Life, Finite Life | 6 years 4 months 24 days | 7 years 10 months 24 days | 7 years |
Gross Carrying Value, Finite Life | $ 6,620 | $ 6,620 | $ 6,620 |
Accumulated Amortization, Finite Life | (6,345) | (5,886) | (5,952) |
Net Carrying Amount, Finite Life | $ 275 | $ 734 | $ 668 |
Trade Name and Trademarks | |||
Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Weighted Average Remaining Useful Life, Indefinite Life | Indefinite | Indefinite | Indefinite |
Net Carrying Amount, Indefinite Life | $ 17,750 | $ 17,750 | $ 17,750 |
Goodwill and Other Intangible_5
Goodwill and Other Intangibles, Net - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 700,000 | $ 700,000 | $ 2,100,000 | $ 1,000,000 |
Impairment of goodwill or other intangible assets | $ 0 | $ 0 | $ 0 | $ 0 |
Goodwill and Other Intangible_6
Goodwill and Other Intangibles, Net - Summary of Estimated Future Amortization Expense Related to Finite-Lived Intangible Assets (Details) $ in Thousands | Jul. 02, 2022 USD ($) |
Finite Lived Intangible Assets Future Amortization Expense [Abstract] | |
Remainder of Fiscal 2022 | $ 649 |
2023 | 2,373 |
2024 | 1,735 |
2025 | 1,638 |
2026 | 1,392 |
Thereafter | 4,852 |
Net Carrying Amount, Finite Life | $ 12,639 |
Accounts and Other Receivable_3
Accounts and Other Receivables, Net - Schedule of Accounts and Other Receivables, Net (Details) - USD ($) $ in Thousands | Jul. 02, 2022 | Oct. 02, 2021 | Jul. 03, 2021 |
Receivables [Abstract] | |||
Vendor and other rebates receivable | $ 27,936 | $ 23,222 | $ 30,696 |
Customer receivables | 17,470 | 13,473 | 14,493 |
Other receivables | 2,985 | 4,621 | 3,236 |
Allowance for doubtful accounts | (1,125) | (2,456) | (577) |
Total | $ 47,266 | $ 38,860 | $ 47,848 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Jul. 02, 2022 | Oct. 02, 2021 | Jul. 03, 2021 |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 9,927 | $ 4,244 | $ 5,382 |
Finished goods | 351,464 | 194,545 | 219,144 |
Total | $ 361,391 | $ 198,789 | $ 224,526 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jul. 02, 2022 | Oct. 02, 2021 | Jul. 03, 2021 |
Prepaid Expense and Other Assets, Current [Abstract] | |||
Prepaid expense | $ 19,764 | $ 12,814 | $ 18,772 |
Other current assets | 10,778 | 7,750 | 9,843 |
Total | $ 30,542 | $ 20,564 | $ 28,615 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses - Schedule of Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Jul. 02, 2022 | Oct. 02, 2021 | Jul. 03, 2021 |
Payables And Accruals [Abstract] | |||
Accounts payable | $ 218,953 | $ 100,960 | $ 155,525 |
Accrued payroll and employee benefits | 18,258 | 40,071 | 27,581 |
Customer deposits | 15,134 | 19,861 | 17,593 |
Interest | 4,496 | 4,898 | 4,919 |
Inventory related accruals | 21,791 | 12,444 | 14,492 |
Loyalty and deferred revenue | 6,392 | 6,685 | 5,897 |
Sales taxes | 16,037 | 13,975 | 18,922 |
Self-insurance reserves | 11,566 | 7,679 | 6,340 |
Other accrued liabilities | 18,254 | 27,024 | 20,462 |
Total | $ 330,881 | $ 233,597 | $ 271,731 |
Accounts Payable and Accrued _4
Accounts Payable and Accrued Expenses (Additional Information) (Details) - USD ($) | Jul. 02, 2022 | Oct. 02, 2021 | Jul. 03, 2021 |
Payables And Accruals [Abstract] | |||
Capital expenditures included in other accrued liabilities | $ 300,000 | $ 1,500,000 | $ 0 |
Long-Term Debt, Net - Summary o
Long-Term Debt, Net - Summary of Long-Term Debt, Net (Details) - USD ($) $ in Thousands | Jul. 02, 2022 | Oct. 02, 2021 | Jul. 03, 2021 | |
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 799,875 | $ 805,950 | $ 807,975 | |
Less: current portion of long-term debt | (8,100) | (8,100) | (8,100) | |
Less: unamortized discount | (2,926) | (3,285) | (3,402) | |
Less: deferred financing charges | (7,527) | (8,440) | (8,742) | |
Total long-term debt, net | $ 781,322 | 786,125 | 787,731 | |
Term Loan Due on March 9, 2028 | ||||
Debt Instrument [Line Items] | ||||
Effective Interest Rate | [1] | 3.02% | ||
Total long-term debt | $ 799,875 | 805,950 | 807,975 | |
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Effective Interest Rate | [2] | 1.25% | ||
Total long-term debt | $ 0 | $ 0 | $ 0 | |
[1] Carries interest at a specified margin over LIBOR between 2.50 % and 2.75 % with a minimum LIBOR of 0.50 % Carries interest at a specific margin between 0.25 % and 0.75 % with respect to Base Rate loans and between 1.25 % and 1.75 % with respect to Eurodollar Rate loans. |
Long-Term Debt, Net - Summary_2
Long-Term Debt, Net - Summary of Long-Term Debt, Net (Parenthetical) (Details) | 9 Months Ended |
Jul. 02, 2022 | |
LIBOR | Term Loan Due on March 9, 2028 | Maximum | |
Debt Instrument [Line Items] | |
Interest rate range | 2.75% |
LIBOR | Term Loan Due on March 9, 2028 | Minimum | |
Debt Instrument [Line Items] | |
Interest rate range | 2.50% |
Interest rate | 0.50% |
ABL Credit Facility | Base Rate | Maximum | |
Debt Instrument [Line Items] | |
Interest rate | 0.75% |
ABL Credit Facility | Base Rate | Minimum | |
Debt Instrument [Line Items] | |
Interest rate | 0.25% |
ABL Credit Facility | Eurodollar | Maximum | |
Debt Instrument [Line Items] | |
Interest rate | 1.75% |
ABL Credit Facility | Eurodollar | Minimum | |
Debt Instrument [Line Items] | |
Interest rate | 1.25% |
Long-Term Debt, Net - Term Loan
Long-Term Debt, Net - Term Loan - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | Oct. 02, 2021 | |
Debt Instrument [Line Items] | ||||||
Secured term loan facility | $ 799,875 | $ 807,975 | $ 799,875 | $ 807,975 | $ 805,950 | |
Loss on debt extinguishment | $ 0 | $ 0 | $ 0 | 9,169 | ||
Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Secured term loan facility | $ 810,000 | |||||
Debt instrument, maturity date | Mar. 09, 2028 | |||||
Loss on debt extinguishment | $ (1,900) | |||||
Term Loan | Minimum | First Lien Leverage Ratio Greater Than 2.75 to 100 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 1% | |||||
Term Loan | Minimum | First Lien Leverage Ratio Less Than or Equal to 2.75 to 1.00 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 1% | |||||
Term Loan | Maximum | First Lien Leverage Ratio Greater Than 2.75 to 100 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 2.75% | |||||
Term Loan | Maximum | First Lien Leverage Ratio Less Than or Equal to 2.75 to 1.00 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 2.75% | |||||
Term Loan | LIBOR | Applicable Rate | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 2.75% | |||||
Term Loan | LIBOR | First Lien Leverage Ratio Greater Than 2.75 to 100 | Applicable Rate | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 2.75% | |||||
Term Loan | LIBOR | First Lien Leverage Ratio Less Than or Equal to 2.75 to 1.00 | Applicable Rate | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 2.50% | |||||
Term Loan | LIBOR | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 0.50% | |||||
Term Loan | ABR | Applicable Rate | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 1.75% | |||||
Term Loan | ABR | First Lien Leverage Ratio Greater Than 2.75 to 100 | Applicable Rate | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 1.75% | |||||
Term Loan | ABR | First Lien Leverage Ratio Less Than or Equal to 2.75 to 1.00 | Applicable Rate | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 1.50% |
Long-Term Debt, Net - Revolving
Long-Term Debt, Net - Revolving Credit Facility - Additional Information (Details) - USD ($) | 1 Months Ended | 9 Months Ended | ||
Apr. 30, 2021 | Jul. 02, 2022 | Oct. 02, 2021 | Jul. 03, 2021 | |
ABL Credit Facility | Base Rate | Minimum | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0.25% | |||
ABL Credit Facility | Base Rate | Maximum | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0.75% | |||
ABL Credit Facility | Eurodollar | Minimum | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1.25% | |||
ABL Credit Facility | Eurodollar | Maximum | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1.75% | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity date | Aug. 13, 2025 | |||
Credit facility, current borrowing capacity | $ 0 | $ 0 | $ 0 | |
Credit facility, maximum borrowing capacity | $ 200,000,000 | |||
Credit facility, commitment fee percentage | 0.25% | |||
Revolving Credit Facility | Standby Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Amount of Letters of credit on credit facility | $ 10,000,000 | |||
Revolving Credit Facility | Base Rate | Minimum | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0.25% | |||
Revolving Credit Facility | Base Rate | Maximum | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0.75% | |||
Revolving Credit Facility | Eurodollar | Minimum | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1.25% | |||
Revolving Credit Facility | Eurodollar | Maximum | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1.75% | |||
Revolving Credit Facility | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0% |
Long-Term Debt, Net - Senior Un
Long-Term Debt, Net - Senior Unsecured Notes - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | Nov. 03, 2020 | |
Debt Instrument [Line Items] | |||||
Loss on debt extinguishment | $ 0 | $ 0 | $ 0 | $ 9,169,000 | |
Senior Unsecured Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, principal amount | $ 390,000,000 | ||||
Loss on debt extinguishment | $ (7,300,000) |
Long-Term Debt, Net - Schedule
Long-Term Debt, Net - Schedule of Debt Maturities and Principal Repayments of Indebtedness (Details) - USD ($) $ in Thousands | Jul. 02, 2022 | Oct. 02, 2021 | Jul. 03, 2021 |
Long Term Debt By Maturity [Abstract] | |||
Remainder of Fiscal 2022 | $ 2,025 | ||
2023 | 8,100 | ||
2024 | 6,075 | ||
2025 | 10,125 | ||
2026 | 8,100 | ||
Thereafter | 765,450 | ||
Total long-term debt | $ 799,875 | $ 805,950 | $ 807,975 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 9 Months Ended | |
Jul. 02, 2022 | Jul. 03, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | (24.90%) | (20.90%) |
Commitments & Contingencies - A
Commitments & Contingencies - Additional Information (Details) - Workers' Compensation Insurance Program - USD ($) $ in Millions | Jul. 02, 2022 | Oct. 02, 2021 |
Maximum | ||
Loss Contingencies [Line Items] | ||
Self insurance retention amount | $ 0.4 | $ 0.4 |
Standby Letter of Credit | ||
Loss Contingencies [Line Items] | ||
Credit facility, remaining borrowing capacity | $ 10 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |||
Dec. 16, 2021 | Dec. 14, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Related Party Transaction [Line Items] | ||||
Paid or accrued management fees | $ 0.4 | |||
Common Stock | ||||
Related Party Transaction [Line Items] | ||||
Common stock, shares repurchased | 7,500,000 | 7,500,000 | ||
Common stock repurchased, price per share | $ 20.25 | |||
Bubbles Investor Aggregator, L.P. | Minimum | ||||
Related Party Transaction [Line Items] | ||||
Beneficial ownership interest in common stock | 5% | |||
Explorer Investment Pte. Ltd. | Minimum | ||||
Related Party Transaction [Line Items] | ||||
Beneficial ownership interest in common stock | 5% | |||
Bubbles Investor Aggregator, L.P. and Explorer Investment Pte. Ltd. | Common Stock | ||||
Related Party Transaction [Line Items] | ||||
Common stock, shares repurchased | 7,500,000 | |||
Common stock repurchased, price per share | $ 20.25 |
Share Repurchase Program - Addi
Share Repurchase Program - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands | 9 Months Ended | |||
Dec. 16, 2021 | Dec. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Repurchase and retirement of common stock including offering costs | $ 152,146,000 | $ 0 | ||
Additional paid in capital | $ 127,500,000 | |||
Increase in retained earnings | $ 24,400,000 | |||
Common Stock | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Authorized amount under share repurchase program | $ 300,000,000 | |||
Period during which shares can be repurchased under share repurchase program | 3 years | |||
Remained available amount under share repurchase program | $ 148,100,000 | |||
Stock repurchased and retired | 7,500 | 7,500 | ||
Stock repurchased paid | $ 151,900,000 | $ 151,875,000 | ||
Repurchase and retirement of common stock including offering costs | $ 152,100,000 | |||
Common stock repurchased, price per share | $ 20.25 |
Share Repurchase Program - Sche
Share Repurchase Program - Schedule of Repurchases of Common Stock (Details) - Common Stock - USD ($) shares in Thousands, $ in Thousands | 9 Months Ended | |
Dec. 16, 2021 | Jul. 02, 2022 | |
Equity, Class of Treasury Stock [Line Items] | ||
Total number of shares repurchased | 7,500 | 7,500 |
Total amount paid for shares repurchased | $ 151,900 | $ 151,875 |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands, shares in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate unamortized value of outstanding equity-based compensation awards | $ 31,500 | $ 31,500 | |||
Unamortized equity-based compensation costs, expected to be recognized, weighted average period | 2 years 7 months 6 days | ||||
Selling, General and Administrative Expenses | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity-based compensation expense | $ 2,900 | $ 6,500 | $ 8,500 | $ 20,600 | |
Vesting of performance-based equity units expense | $ 400 | $ 11,700 | |||
Common Stock | 2020 Omnibus Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for grant | 7.5 | 7.5 | |||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate unamortized value of outstanding equity-based compensation awards | $ 10,781 | $ 10,781 | |||
Unamortized equity-based compensation costs, expected to be recognized, weighted average period | 2 years | ||||
Stock Options | 2020 Omnibus Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Option expiration period | 10 years |
Equity-Based Compensation - Sum
Equity-Based Compensation - Summary of Stock Options Activity (Details) - Stock Options | 9 Months Ended | |
Jul. 02, 2022 $ / shares shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Options, Beginning Balance | 4,877,000 | |
Number of Options, Granted | 0 | |
Number of Options, Exercised | (81,000) | |
Number of Options, Forfeited/Expired | (414,000) | |
Number of Options, Ending Balance | 4,382,000 | |
Number of Options, Vested | 1,346,000 | [1] |
Weighted Average Exercise Price, Balance, Beginning | $ / shares | $ 18.22 | |
Weighted Average Exercise Price, Granted | $ / shares | 0 | |
Weighted Average Exercise Price, Exercised | $ / shares | 17 | |
Weighted Average Exercise Price, Forfeited/Expired | $ / shares | 18.20 | |
Weighted Average Exercise Price, Balance, Ending | $ / shares | $ 18.24 | |
Weighted Average Exercise Price, Vested | 18.16 | [1] |
[1] Includes 550,736 sto ck options that were subject to the Company’s achievement of the fiscal 2021 net income target which was deemed to have been met during the nine months ended July 2, 2022 . |
Equity-Based Compensation - S_2
Equity-Based Compensation - Summary of Stock Options Activity (Parenthetical) (Details) $ in Thousands | 9 Months Ended |
Jul. 02, 2022 USD ($) | |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance stock option vested | $ 550,736 |
Equity-Based Compensation - S_3
Equity-Based Compensation - Summary of Stock Options Activity Additional Information (Details) $ in Thousands | 9 Months Ended |
Jul. 02, 2022 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unamortized value of unvested stock options | $ 31,500 |
Weighted average period (years) that expense is expected to be recognized | 2 years 7 months 6 days |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Aggregate intrinsic value of options outstanding | $ 0 |
Unamortized value of unvested stock options | $ 10,781 |
Weighted average period (years) that expense is expected to be recognized | 2 years |
Weighted average remaining contractual life (years) for options outstanding | 8 years 9 months 18 days |
Equity-Based Compensation - S_4
Equity-Based Compensation - Summary of RSU Activity under Plan (Details) - Restricted Stock Units | 9 Months Ended |
Jul. 02, 2022 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning Balance | shares | 3,135,000 |
Granted | shares | 504 |
Vested | shares | (626) |
Forfeited | shares | (317) |
Ending Balance | shares | 2,696,000 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 6.90 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 19.73 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 8.35 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 8.82 |
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 8.74 |
Equity-Based Compensation - S_5
Equity-Based Compensation - Summary of RSU Activity under Plan Additional Information (Details) $ in Thousands | 9 Months Ended |
Jul. 02, 2022 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average period (years) that expense is expected to be recognized | 2 years 7 months 6 days |
Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unamortized value of unvested RSUs | $ 20,750 |
Weighted average period (years) that expense is expected to be recognized | 3 years |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Reconciliation of Basic Weighted Average Common Shares Outstanding to Diluted Weighted Average Common Shares Outstanding (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Numerator: | ||||
Net income | $ 122,986 | $ 118,802 | $ 101,095 | $ 82,093 |
Denominator: | ||||
Weighted average shares outstanding - basic | 182,937 | 188,264 | 184,707 | 184,021 |
Effect of dilutive securities: | ||||
Stock options | 1 | 2,792 | 52 | 1,914 |
RSUs | 1,783 | 3,144 | 1,936 | 3,668 |
Weighted average shares outstanding - diluted | 184,721 | 194,200 | 186,695 | 189,603 |
Basic earnings per share | $ 0.67 | $ 0.63 | $ 0.55 | $ 0.45 |
Diluted earnings per share | $ 0.67 | $ 0.61 | $ 0.54 | $ 0.43 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Antidilutive Securities Excluded from Calculation of Diluted Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from calculation of diluted earnings per share | 4,530 | 290 | 2,293 | 334 |
Stock Options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from calculation of diluted earnings per share | 3,967 | 290 | 1,742 | 218 |
RSUs | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from calculation of diluted earnings per share | 563 | 0 | 551 | 116 |