Unified Grocers 10-Q 2 Jun 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jan. 02, 2016	May. 28, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jan. 2, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Entity Registrant Name	UNIFIED GROCERS, INC.
Entity Central Index Key	320,431
Current Fiscal Year End Date	--10-02
Entity Filer Category	Non-accelerated Filer
Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		122,500
Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		410,537
Class C
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		15
Class E
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		120,550

Consolidated Condensed Balance

Consolidated Condensed Balance Sheets - USD ($) $ in Thousands	Jan. 02, 2016	Oct. 03, 2015
Current assets:
Cash and cash equivalents	$ 2,818	$ 3,056
Accounts and current portion of notes receivable, net of allowances of $4,041 and $4,171 at January 2, 2016 and October 3, 2015, respectively	192,849	191,744
Inventories	251,344	279,576
Prepaid expenses and other current assets	8,876	10,814
Deferred income taxes	9,210	9,210
Assets of discontinued operations - current		125,904
Total current assets	465,097	620,304
Properties and equipment, net	163,188	163,808
Investments	13,069	13,069
Notes receivable, less current portion and net of allowances of $108 and $54 at January 2, 2016 and October 3, 2015, respectively	16,875	17,523
Goodwill	37,846	37,846
Other assets, net	112,659	111,775
Total Assets	808,734	964,325
Current liabilities:
Accounts payable	227,591	281,478
Accrued liabilities	45,733	46,287
Current portion of notes payable	19,023	16,960
Members' deposits and estimated patronage dividends	9,614	10,175
Liabilities of discontinued operations - current		99,682
Total current liabilities	301,961	454,582
Notes payable, less current portion	259,420	261,585
Long-term liabilities, other	160,764	161,180
Members' and Non-Members' deposits	$ 9,411	$ 7,995
Commitments and contingencies
Shareholders' equity:
Retained earnings - allocated	$ 23,919	$ 25,748
Retained earnings - non-allocated	6,864	6,864
Total retained earnings	30,783	32,612
Receivable from sale of Class A Shares to Members	(225)	(255)
Accumulated other comprehensive loss	(72,236)	(72,230)
Total shareholders' equity	77,178	78,983
Total Liabilities and Shareholders' Equity	808,734	964,325
Common stock Class A
Shareholders' equity:
Common stock	23,088	23,088
Common stock Class B
Shareholders' equity:
Common stock	75,198	75,198
Common stock Class E
Shareholders' equity:
Common stock	$ 20,570	$ 20,570

Consolidated Condensed Balance3

Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jan. 02, 2016	Oct. 03, 2015
Accounts and current portion of notes receivable, allowances	$ 4,041	$ 4,171
Notes receivable, less current portion allowances	$ 108	$ 54
Common stock Class A
Common stock, shares authorized	500,000	500,000
Common stock, shares outstanding	122,500	122,500
Common stock Class B
Common stock, shares authorized	2,000,000	2,000,000
Common stock, shares outstanding	410,537	410,537
Common stock Class E
Common stock, shares authorized	2,000,000	2,000,000
Common stock, shares outstanding	205,704	205,704

Consolidated Condensed Statemen

Consolidated Condensed Statements of Earnings (Loss) - USD ($) $ in Thousands	3 Months Ended
	Jan. 02, 2016	Dec. 27, 2014
Net sales (gross billings including vendor direct arrangements were $999,246 and $994,545 for the thirteen weeks ended January 2, 2016 and December 27, 2014, respectively)	$ 972,865	$ 967,768
Cost of sales	899,484	898,040
Distribution, selling and administrative expenses	70,150	64,926
Operating income	3,231	4,802
Interest expense	(2,482)	(2,718)
Loss on early extinguishment of debt		(3,200)
Earnings (loss) before estimated patronage dividends and income taxes	749	(1,116)
Estimated patronage dividends	(2,412)	(1,492)
Earnings (loss) before income taxes	(1,663)	(2,608)
Income tax (provision) benefit	(14)	1,075
Net loss from continuing operations	(1,677)	(1,533)
(Loss) earnings from discontinued operations, net of income tax benefit of $0 and income tax provision of $235 for fiscal periods ended January 2, 2016 and December 27, 2014, respectively	(152)	296
Net earnings (loss)	$ (1,829)	$ (1,237)

Consolidated Condensed Stateme5

Consolidated Condensed Statements of Earnings (Loss) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Jan. 02, 2016	Dec. 27, 2014
Gross billings including vendor direct arrangements	$ 999,246	$ 994,545
Income tax provision (benefit) form discontinued operations	$ 0	$ 235

Consolidated Condensed Stateme6

Consolidated Condensed Statements of Comprehensive Earnings (Loss) - USD ($) $ in Thousands	3 Months Ended
	Jan. 02, 2016	Dec. 27, 2014
Net loss	$ (1,829)	$ (1,237)
Other comprehensive earnings (loss), net of income taxes:
Unrealized net holding (loss) gain on investments, net of income tax (benefit) expense of $(29) and $(14) for the thirteen weeks ended January 2, 2016 and December 27, 2014, respectively	(53)	(27)
Defined benefit pension plans and other postretirement benefit plans: Changes in unrecognized prior service credits during the period, and changes in unrecognized gains and losses, net of income tax expense (benefit) of $26 and $(602) for the thirteen weeks ended January 2, 2016 and December 27, 2014, respectively	47	(1,103)
Comprehensive loss	$ (1,835)	$ (2,367)

Consolidated Condensed Stateme7

Consolidated Condensed Statements of Comprehensive Earnings (Loss) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Jan. 02, 2016	Dec. 27, 2014
Unrealized net holding (loss) gain on investments, net of income tax (benefit) expense	$ (29)	$ (14)
Defined benefit pension plans and other postretirement benefit plans: Changes in unrecognized prior service credits during the period, and changes in unrecognized gains and losses, income tax expense (benefit)	$ 26	$ (602)

Consolidated Condensed Stateme8

Consolidated Condensed Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Jan. 02, 2016	Dec. 27, 2014
Cash flows from operating activities:
Net loss	$ (1,829)	$ (1,237)
Less: Net earnings from discontinued operations		446
Less: Loss on sale of discontinued operations	(152)	(150)
Net loss from continuing operations	(1,677)	(1,533)
Adjustments to reconcile net loss to net cash (utilized) provided by operating activities:
Depreciation and amortization	7,976	7,242
Provision for doubtful accounts	110	317
Loss (gain) on sale of properties and equipment	66	(190)
Loss on early extinguishment of debt		3,200
(Increase) decrease in assets:
Accounts receivable	(1,079)	(5,397)
Inventories	28,232	16,708
Prepaid expenses and other current assets	1,938	(369)
Increase (decrease) in liabilities:
Accounts payable	(54,000)	(27,030)
Accrued liabilities	(554)	(2,860)
Long-term liabilities, other	(343)	(567)
Net cash utilized by continuing operating activities	(19,331)	(10,479)
Net cash utilized for sale of discontinued operations	(152)	(150)
Net cash utilized by continuing operating activities	(19,483)	(10,629)
Net cash utilized by discontinued operating activities		(408)
Net cash utilized by operating activities	(19,483)	(11,037)
Cash flows from investing activities:
Purchases of properties and equipment	(1,458)	(845)
Proceeds from sales of securities and other investments		206
Proceeds from sale of discontinued operations	26,222
Origination of notes receivable	(96)	(275)
Collection of notes receivable	568	939
Proceeds from sales of properties and equipment		190
Increase in other assets	(5,319)	(3,478)
Net cash provided (utilized) by continuing investing activities	19,917	(3,263)
Net cash utilized by discontinued investing activities		(212)
Net cash provided (utilized) by investing activities	19,917	(3,475)
Cash flows from financing activities:
Net borrowings (repayments) under secured credit agreements	1,200	(14,205)
Borrowings under notes payable	644	86,262
Repayments of notes payable	(3,391)	(50,004)
Payment of deferred financing fees	(10)	(1,647)
Payment of debt extinguishment costs		(3,023)
Decrease in Members' deposits and estimated patronage dividends	(561)	(848)
Increase (decrease) in Members' and Non-Members' deposits	1,416	(961)
Decrease in receivable from sale of Class A Shares to Members, net	30	35
Net cash (utilized) provided by financing activities	(672)	15,609
Net (decrease) increase in cash and cash equivalents from continuing operations	(238)	1,717
Cash and cash equivalents at beginning of period	3,056	1,207
Cash and cash equivalents at end of period	2,818	2,924
Supplemental disclosure of cash flow information:
Interest paid during the period	1,978	2,341
Income taxes paid during the period	0	0
Supplemental disclosure of non-cash items:
Capital leases	$ 1,445
Write-off of unamortized deferred financing fees due to debt extinguishment		$ 177

Basis of Presentation

Basis of Presentation	3 Months Ended
	Jan. 02, 2016
Basis of Presentation	1. BASIS OF PRESENTATION The consolidated condensed financial statements include the accounts of Unified Grocers, Inc. and all its subsidiaries (the “Company” or “Unified”). Inter-company transactions and accounts with subsidiaries have been eliminated. The interim financial statements included herein have been prepared by the Company without audit, pursuant to the rules and regulations promulgated by the Securities and Exchange Commission (the “SEC”). Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted pursuant to SEC rules and regulations; nevertheless, management believes that the disclosures are adequate to make the information presented not misleading. These consolidated condensed financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s latest Annual Report on Form 10-K for the year ended October 3, 2015 filed with the SEC. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. The consolidated condensed financial statements reflect all adjustments that, in the opinion of management, are both of a normal and recurring nature and necessary for the fair presentation of the results for the interim periods presented. The preparation of the consolidated condensed financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated condensed financial statements and accompanying notes. As a result, actual results could differ from those estimates. The Company’s banking arrangements allow the Company to fund outstanding checks when presented for payment to the financial institutions utilized by the Company for disbursements. This cash management practice frequently results in total issued checks exceeding the available cash balance at a single financial institution. The Company’s policy is to record its cash disbursement accounts with a cash book overdraft in accounts payable. At January 2, 2016 and October 3, 2015, the Company had book overdrafts of $79.7 million and $88.1 million, respectively, classified in accounts payable and included in cash provided by operating activities.

Discontinued Operations

Discontinued Operations	3 Months Ended
	Jan. 02, 2016
Discontinued Operations	2. Discontinued Operations On October 7, 2015 (the “Closing Date”), the Company completed the sale of all of the outstanding shares of the Company’s wholly-owned subsidiary, Unified Grocers Insurance Services (“UGIS”), to AmTrust Financial Services, Inc. (“AmTrust” or the “Buyer”) pursuant to the terms of a Stock Purchase Agreement (the “Stock Purchase Agreement”) by and between the Company and AmTrust dated as of April 16, 2015. As of the Closing Date, UGIS owned all of the outstanding shares of the capital stock of Springfield Insurance Company (“SIC”) and Springfield Insurance Company Limited (Bermuda) (“SICL,” and collectively with UGIS and SIC, the “Acquired Companies”). For additional information, see Item 1.01. “ Entry into a Material Definitive Agreement Stock Purchase Agreement by and between Unified Grocers, Inc. and AmTrust Financial Services, Inc. dated as of April 16, 2015 Completion of Acquisition of Disposition of Assets Master Services Agreement by and between Unified Grocers, Inc. and AmTrust Financial Services, Inc. dated as of October 7, 2015 The estimated purchase price received for the Acquired Companies was approximately $26.2 million in cash proceeds, representing an agreed-upon discount to the Tangible Book Value (“TBV”), which was calculated as defined in the Stock Purchase Agreement. In May 2016, the Buyer delivered to the Seller a final closing statement, including its calculation of the TBV as of the Closing Date. The final purchase price was adjusted to reflect an increase in the purchase price of $0.4 million between the estimated TBV as of the Closing Date and the actual TBV as of the Closing Date. The Company utilized the net proceeds of this transaction to repay certain indebtedness. At the Closing Date, AmTrust and the Company also entered into a Master Services Agreement for a term of five (5) years, pursuant to which, among other things, each party agreed to provide the other with certain transition services relating to the business of the Acquired Companies. AmTrust has also agreed to pay the Company an annual payment following each of the first five years (ended December 31) of the term of the Master Services Agreement (each, an “Earn-Out Payment”). Each Earn-Out Payment will be equal to four and one-half percent (4.5%) of gross written premium in respect of each of these first five years. For purposes of such payments, gross written premium will be based on premiums written on or attributable to all insurance policies purchased during the applicable year by members or customers of the Company, issued by SIC or SICL or any other affiliate of AmTrust, to the extent that such policies were purchased from or through UGIS or by a different sales channel if there is a change in UGIS. Based on agreed upon terms with AmTrust, the Company recorded a $1.3 million impairment on the Company’s investment in the Acquired Companies in its fiscal year ended October 3, 2015. Additionally, the Company wrote-off $0.7 million in expenses related to an investigation of issues relating to the setting of case reserves and management of claims by the Company’s former insurance subsidiaries and related matters (the “Audit Committee Investigation”) and incurred $1.2 million in selling costs related to the Acquired Companies. The Acquired Companies incurred an operating loss of $3.7 million for the fiscal year ended October 3, 2015. The Company incurred approximately $0.2 million in additional expenses attributable to the Audit Committee Investigation during the thirteen weeks ended January 2, 2016, and such expenses are included in loss from discontinued operations in our consolidated condensed statements of earnings (loss). The Company’s historical financials have been revised to present the operating results of the Acquired Companies as discontinued operations. Summarized results of the discontinued operations are as follows for the thirteen weeks ended January 2, 2016, and December 27, 2014: (dollars in thousands) January 2, 2016 December 27, 2014 Revenue $ — $ 4,870 (Loss) earnings from discontinued operations (152 ) 531 Provision for income taxes — 235 (Loss) earnings from discontinued operations net of tax $ (152 ) $ 296 The operating results of the Acquired Companies were historically reported as the results of operations included in the Insurance segment. Assets and liabilities identifiable within the Acquired Companies are reported as “Assets of discontinued operations – current” and “Liabilities of discontinued operations – current,” respectively, in the Company’s consolidated condensed balance sheets. The major classes of assets and liabilities of the discontinued operations as of October 3, 2015 are as follows: (dollars in thousands) October 3, 2015 Cash $ 8,428 Accounts receivable, net of allowance for bad debt 2,715 Prepaid expenses 676 Deferred tax assets — Property, plant & equipment, net 1,351 Investments 85,052 Other assets 27,682 Assets of discontinued operations – current $ 125,904 Accounts payable $ 592 Accrued liabilities 97,619 Debt — Other reserves 1,471 Liabilities of discontinued operations – current $ 99,682

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Jan. 02, 2016
Fair Value of Financial Instruments	3. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company evaluates the fair value of its assets and liabilities in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, “ Fair Value Measurements and Disclosures Financial Instruments.” Management has evaluated its assets and liabilities valued at fair value as follows: · Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities. · Level 2 – Inputs other than quoted prices included in Level 1 that are either directly or indirectly observable. These inputs include quoted prices for similar assets or liabilities other than quoted prices in Level 1, quoted prices in markets that are not active, or other inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. · Level 3 – Unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. The Company records marketable securities at fair value in accordance with ASC Topic 320, “ Investments – Debt and Equity Securities The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value (these values represent an approximation of possible value and may never actually be realized): Cash and cash equivalents. Accounts receivable and notes receivable. Concentration of credit risk. Investments. The following table represents the Company’s financial instruments recorded at fair value and the hierarchy of those assets as of January 2, 2016: (dollars in thousands) Level 1 Level 2 Level 3 Total Mutual funds $ 12,680 $ — $ — $ 12,680 Total $ 12,680 $ — $ — $ 12,680 The following table represents the Company’s financial instruments recorded at fair value and the hierarchy of those assets as of October 3, 2015: (dollars in thousands) Level 1 Level 2 Level 3 Total Mutual funds $ 12,546 $ — $ — $ 12,546 Total $ 12,546 $ — $ — $ 12,546 Mutual funds are valued by the Company based on information received from a third party. These assets are valued based on quoted prices in active markets (Level 1 inputs). As of January 2, 2016 and October 3, 2015, respectively, $12.7 million and $12.5 million of mutual funds, held in rabbi trusts to provide for employee benefit obligations, are included in other assets in the Company’s consolidated condensed balance sheets. For assets traded in active markets, the assets are valued at quoted bond market prices (Level 1 inputs). For assets traded in inactive markets, the service’s pricing methodology uses observable inputs (such as bid/ask quotes) for identical or similar assets. Assets considered to be similar will have similar characteristics, such as: duration, volatility, prepayment speed, interest rates, yield curves, and/or risk profile and other market corroborated inputs (Level 2 inputs). The Company determines the classification of financial asset groups within the fair value hierarchy based on the lowest level of input into each group’s asset valuation. The Company did not have any significant transfers into or out of Levels 1 and 2 during the thirteen week period ended January 2, 2016. Notes payable. The fair value of notes payable was $276.8 million and $278.8 million compared to their carrying value of $278.4 million and $278.5 million at January 2, 2016 and October 3, 2015, respectively. These fair values were based on estimates of market conditions, estimates using present value and risks existing at that time (Level 2 inputs).

Investments

Investments	3 Months Ended
	Jan. 02, 2016
Investments	4. INVESTMENTS The amortized cost and fair value of investments are as follows: (dollars in thousands) January 2, 2016 Amortized Gross Gross Fair Common stock, at cost $ 13,069 Total investments $ 13,069 (dollars in thousands) October 3, 2015 Amortized Gross Gross Fair Common stock, at cost $ 13,069 Total investments $ 13,069 During the interim period ended January 2, 2016 and the fiscal year ended October 3, 2015, the Company did not hold any trading or held-to-maturity securities. Net investment income, which is included in net sales, is summarized as follows: (dollars in thousands) Thirteen Weeks Ended January 2, December 27, Dividend income $ 6 $ — 6 — Less: investment expenses — — $ 6 $ — Equity investments held by the Company that do not have readily determinable fair values are accounted for using the cost or equity methods of accounting. The Company evaluated its equity investments for impairment as of January 2, 2016, and the Company did not consider any of these equity investments to be impaired. The Company held investments in Western Family Holding Company (“Western Family”) common stock of $9.0 million at January 2, 2016 and October 3, 2015, respectively. Western Family is a privately held company located in Oregon from which the Company purchases food and general merchandise products. The investment represents approximately a 17.2% ownership interest at both January 2, 2016 and October 3, 2015. The Company’s ownership percentage in Western Family is based, in part, on the volume of purchases transacted with Western Family. The investment is accounted for using the equity method of accounting. The Company’s wholly-owned finance subsidiary, Grocers Capital Company (“GCC”), has an investment in National Consumer Cooperative Bank (“NCB”), which operates as a cooperative, and therefore, its participants are required to own its Class B common stock. The investment in the Class B common stock of NCB, accounted for using the cost method of accounting, aggregated $4.1 million at both January 2, 2016 and October 3, 2015. The Company recognized dividend income from NCB of $6 thousand and zero in the interim period ended January 2, 2016 and the fiscal year ended October 3, 2015, respectively.

Segment Information

Segment Information	3 Months Ended
	Jan. 02, 2016
Segment Information	5. SEGMENT INFORMATION Unified is a retailer-owned, grocery wholesale cooperative serving supermarket, specialty and convenience store operators located primarily in the western United States and the Pacific Rim. The Company’s customers range in size from single store operators to regional supermarket chains. The Company sells a wide variety of products typically found in supermarkets. The Company’s customers are comprised of its owners (“Members”) and non-owners (“Non-Members”). Our focus is on our Members, but we also do business with Non-Member customers. The Company sells products through Unified, including its specialty food division, and through its international sales subsidiary. The Company reports all product sales in its Wholesale Distribution segment. The Company also provides support services, including financing, to its customers through the Wholesale Distribution segment and through separate subsidiaries. Finance activities are grouped within Unified’s All Other business activities. The availability of specific products and services may vary by geographic region. Management identifies segments based on the information monitored by the Company’s chief operating decision maker (the Chief Executive Officer) to manage the business and, accordingly, has identified the following reportable segments: · The Wholesale Distribution segment includes the results of operations from the sale of groceries and general merchandise products to both Members and Non-Members, including a broad range of branded and corporate brand products in nearly all the categories found in a typical supermarket, including dry grocery, frozen food, deli, meat, dairy, eggs, produce, bakery, ethnic, gourmet, specialty foods, natural and organic, general merchandise and health and beauty care products. Support services (other than financing), including merchandising, retail pricing, advertising, promotional planning, retail technology, equipment purchasing and real estate services, are reported in the Wholesale Distribution segment. As of, and for the thirteen weeks ended, January 2, 2016, the Wholesale Distribution segment collectively represented approximately 97% of the Company’s total assets and nearly 100% of total net sales. Non-perishable products consist primarily of dry grocery, frozen food, deli, ethnic, gourmet, specialty foods, natural and organic, general merchandise and health and beauty care products. They also include (1) retail support services and (2) products and shipping services provided to Non-Member customers through Unified International, Inc. Perishable products consist primarily of service deli, service bakery, meat, eggs, produce, bakery and dairy products. Net sales within the Wholesale Distribution segment include $653.6 million and $618.7 million, or 67.2% and 64.0% of total Wholesale Distribution segment net sales, for the thirteen weeks ended January 2, 2016 and December 27, 2014, respectively, attributable to sales of non-perishable products, and $318.8 million and $348.8 million, or 32.8% and 36.0% of total Wholesale Distribution segment net sales, for the thirteen weeks ended January 2, 2016 and December 27, 2014, respectively, attributable to sales of perishable products. Wholesale Distribution segment net sales also include revenues attributable to the Company’s retail support services (other than financing), which comprised less than 1% of total Wholesale Distribution segment net sales, for each of the foregoing respective periods. Transactions involving vendor direct arrangements are comprised principally of sales of produce in the Pacific Northwest and Northern California and sales of branded ice cream in Southern California. “Gross billings,” an internal financial metric that adds back gross billings through vendor direct arrangements to net sales and is used by management to assess our operating performance, was $999.0 million and $994.3 million for the thirteen weeks ended January 2, 2016 and December 27, 2014, respectively. · The Company’s former Insurance segment included the results of operations for the Acquired Companies (Unified Grocers Insurance Services and the Company’s two insurance subsidiaries, Springfield Insurance Company and Springfield Insurance Company, Limited). As of December 27, 2014, the Company’s discontinued insurance operations collectively accounted for approximately 13% of total assets. The All Other category includes the results of operations for the Company’s other support businesses, including its finance subsidiary, whose services are provided to a common customer base, none of which individually meets the quantitative thresholds of a reportable segment. As of, and for the thirteen weeks ended, January 2, 2016, the All Other category collectively accounted for approximately 3% of the Company’s total assets, and less than 1% of total net sales. Information about the Company’s operating segments is summarized below. (dollars in thousands) Thirteen Weeks Ended January 2, December 27, Net sales Wholesale distribution: Gross billings $ 998,952 $ 994,272 Less: Gross billings through vendor direct arrangements (26,381 ) (26,777 ) Wholesale distribution: Net sales 972,571 967,495 All other 435 421 Inter-segment eliminations (141 ) (148 ) Total net sales $ 972,865 $ 967,768 Operating income (loss) Wholesale distribution $ 3,092 $ 4,681 All other 139 121 Total operating income 3,231 4,802 Interest expense (2,482 ) (2,718 ) Loss on early extinguishment of debt — (3,200 ) Estimated patronage dividends (2,412 ) (1,492 ) Income tax (provision) benefit (14 ) 1,075 Net loss from continuing operations $ (1,677 ) $ (1,533 ) (Loss) earnings from discontinued operations, net of tax (152 ) 296 Net loss $ (1,829 ) $ (1,237 ) Depreciation and amortization Wholesale distribution $ 7,956 $ 7,222 All other 20 20 Total depreciation and amortization $ 7,976 $ 7,242 Capital expenditures Wholesale distribution $ 1,458 $ 845 All other — — Total capital expenditures $ 1,458 $ 845 Identifiable assets at January 2, 2016 and December 27, 2014 Wholesale distribution $ 785,913 $ 767,194 Discontinued operations — 120,896 All other 22,821 24,583 Total identifiable assets $ 808,734 $ 912,673

Notes Payable

Notes Payable	3 Months Ended
	Jan. 02, 2016
Notes Payable	6. NOTES PAYABLE On December 28, 2015, the Company entered into a consent and waiver (the “Consent”) among the Company, the lenders party thereto, and Wells Fargo Bank, National Association, as administrative agent (“Administrative Agent”). The Consent relates to certain requirements of the Amended and Restated Credit Agreement dated as of June 28, 2013, as amended by the First Amendment and Consent dated as of June 27, 2014 and as further amended by the Second Amendment, Consent and Lender Joinder dated as of December 18, 2014 and the Consent dated as of June 26, 2015 (as so amended, the “Credit Agreement”), among the Company, the lenders party thereto, and the Administrative Agent. The Administrative Agent and the Lenders (as defined in the Credit Agreement) consented to (i) the extension to June 30, 2016 of the deadline for delivery of the annual financial statements required pursuant to the Credit Agreement and certain certificates and information required by the Credit Agreement to be delivered with financial statements required pursuant to the Credit Agreement and (ii) the extension to January 31, 2016 of the deadline for delivery of annual financial projections required pursuant to the Credit Agreement. The financial projections were delivered prior to the January 31, 2016 deadline. The Consent sets forth the Lenders’ waiver of specified Defaults and Events of Default (as those terms are defined in the Credit Agreement) to the extent arising out of any revision or other modification which may be necessitated by determinations made as a result of the Audit Committee Investigation to any writing previously delivered (or which may be delivered prior to June 30, 2016) by a Loan Party (as that term is defined in the Credit Agreement) in accordance with the applicable loan documents, or the effect or consequence of any such revision or other modification. See Item 1.01. “Entry into a Material Definitive Agreement – Amendment of Amended and Restated Credit Agreement” Form 8-K, The Company’s outstanding revolver borrowings under the Credit Agreement increased to $163.0 million at January 2, 2016 (Eurodollar and Base Rate Loans at a blended average rate of 2.35% per annum) from $161.8 million at October 3, 2015 (Eurodollar and Base Rate Loans at a blended average rate of 1.99% per annum). The Company’s outstanding FILO borrowings under the Credit Agreement were $20.8 million at January 2, 2016 (Eurodollar and Base Rate Loans at a blended average rate of 3.67% per annum) and $20.7 million at October 3, 2015 (Eurodollar and Base Rate Loans at a blended average rate of 3.20% per annum). The Company’s outstanding term loan borrowings under the Credit Agreement were $90.0 million at January 2, 2016 (Eurodollar and Base Rate Loans at a blended average rate of 2.42% per annum) and $92.5 million at October 3, 2015 (Eurodollar and Base Rate Loans at a blended average rate of 2.20% per annum). Subsidiary Financing Arrangement On December 28, 2015, GCC (see Note 4) received consent from California Bank & Trust, as arranger and administrative agent for the Amended and Restated Loan and Security Agreement, dated as of September 26, 2014 as amended by Amendment Number One dated as of June 26, 2015 (as so amended, the “GCC Loan Agreement”), to extend the due date of the covenant requirement to deliver consolidated audited financial statements of the Company to June 30, 2016. GCC had no revolving loan borrowings outstanding at January 2, 2016 and October 3, 2015.

Pension and Other Postretiremen

Pension and Other Postretirement Benefits	3 Months Ended
	Jan. 02, 2016
Pension and Other Postretirement Benefits	7. PENSION AND OTHER POSTRETIREMENT BENEFITS The Company sponsors a cash balance plan (“Unified Cash Balance Plan”). The Unified Cash Balance Plan is a noncontributory defined benefit pension plan covering substantially all employees of the Company who are not subject to a collective bargaining agreement. Participants’ balances receive an annual interest credit, currently tied to the 30-year Treasury rate that is in effect the previous November, but in no event shall the rate be less than 5%. Benefits under the Unified Cash Balance Plan are provided through a trust. Prior to the end of fiscal 2014, the Company amended the Unified Cash Balance Plan to close the plan to new entrants effective December 31, 2014. In addition, the plan was frozen at December 31, 2014 such that current participants will no longer accrue salary-based service credits based on years of service with the Company and pensionable compensation after that date. The annual interest credit as described above will continue for participants active in the plan as of December 31, 2014. Selected groups of vested terminated participants were each given one-time opportunities to elect a lump sum distribution of their benefits from the plan’s assets or immediate receipt of an annuity in December 2015 and December 2014. As a result, benefit payments of $8.7 million and $7.9 million, respectively, were distributed from the plan’s assets to those participants who elected such option prior to the end of the Company’s first quarters ended January 2, 2016 and December 27, 2014. The Company also sponsors an Executive Salary Protection Plan III (“ESPPIII”) for the executive officers of the Company that provides supplemental post-termination retirement income based on each participant’s salary and years of service as an officer of the Company. This plan was amended in December 2012 to close the plan to new entrants as of September 30, 2012. This plan was replaced in fiscal 2013 with the Company’s Supplemental Executive Retirement Plan (see discussion below). The Company has informally funded its obligation to plan participants in a rabbi trust, comprised primarily of life insurance policies reported at cash surrender value and mutual fund assets consisting of various publicly-traded mutual funds reported at estimated fair value based on quoted market prices. In accordance with ASC Topic 710, “Compensation – General,” “Compensation – Retirement Benefits. The Company sponsors other postretirement benefit plans that provide certain medical coverage to retired non-union employees and officers and provide unused sick leave benefits for certain eligible union employees. Those plans are not funded. The components of net periodic cost for pension and other postretirement benefits for the respective thirteen weeks ended January 2, 2016 and October 3, 2015 consist of the following: (dollars in thousands) Pension Benefits Other Postretirement Benefits Thirteen Weeks Ended Thirteen Weeks Ended January 2, December 27, January 2, December 27, Service cost $ 95 $ 1,536 $ 9 $ 14 Interest cost 2,566 3,030 271 303 Expected return on plan assets (3,644 ) (4,138 ) — — Amortization of prior service (credit) cost (2 ) (7 ) (312 ) (2,081 ) Recognized actuarial loss 516 357 (129 ) 26 Net periodic benefit cost (income) $ (469 ) $ 778 $ (161 ) $ (1,738 ) The Company’s funding policy is to make contributions to the Unified Cash Balance Plan in amounts that are at least sufficient to meet the minimum funding requirements of applicable laws and regulations, but no more than amounts deductible for federal income tax purposes. During August 2014, legislation to extend pension funding relief was enacted as part of the Highway and Transportation Funding Act of 2014 (“HATFA”). As a result, the Company expects to make no estimated minimum contributions to the Unified Cash Balance Plan during fiscal 2016 for the 2015 plan year, and there will be no quarterly contributions required for the 2016 plan year. At its discretion, the Company may contribute in excess of the minimum (zero) requirement. Additional contributions, if any, will be based, in part, on future actuarial funding calculations and the performance of plan investments. Additionally, the Company anticipates making benefit payments of $4.0 million to participants in the ESPPIII for the 2016 plan year. The Company made benefit payments of $0.2 million to participants in the ESPPIII during the thirteen weeks ended January 2, 2016 for the 2016 plan year. The Company sponsors a supplemental retirement plan for a select group of management or highly compensated employees that are at the Vice President level and above of the Company under the Unified Grocers, Inc. Supplemental Executive Retirement Plan (the “SERP”). This plan was established to replace the ESPPIII, which has been frozen. The SERP provides participating officers with supplemental retirement income in addition to the benefits provided under the Company’s Cash Balance and 401(k) plans. The SERP is a non-qualified defined contribution type plan under which benefits are derived based on a notional account balance to be funded by the Company for each participating officer. The account balance will be credited each year with a Company contribution based on the officer’s compensation, calculated as base salary plus bonus, earned during a fiscal year and the officer’s executive level at the end of the fiscal year. Plan participants may select from a variety of investment options (referred to as “Measurement Funds” in the plan document) concerning how the contributions are hypothetically invested. Assets of the SERP (i.e., the participants’ account balances) will not be physically invested in the investments selected by the participants; rather, the Measurement Funds are utilized for the purpose of debiting or crediting additional amounts to each participant’s account. The Company informally funds its obligation to plan participants in a rabbi trust, comprised of mutual fund assets consisting of various publicly-traded mutual funds reported at estimated fair value based on quoted market prices. Mutual funds reported at their estimated fair value of $2.0 million and $2.0 million at January 2, 2016 and October 3, 2015, respectively, are included in other assets in the Company’s consolidated condensed balance sheets. The related accrued benefit cost (representing the Company’s benefit obligation to participants) of $3.6 million and $3.2 million at January 2, 2016 and October 3, 2015, respectively, is recorded in long-term liabilities, other in the Company’s consolidated condensed balance sheets. The SERP is accounted for pursuant to FASB ASC section 715-70, “ Compensation – Retirement Benefits – Defined Contribution Plans”

Contingencies

Contingencies	3 Months Ended
	Jan. 02, 2016
Contingencies	8. CONTINGENCIES The Company is a party to various litigation, claims and disputes, some of which are for substantial amounts, arising in the ordinary course of business. While the ultimate effect of such actions cannot be predicted with certainty, the Company believes the outcome of these matters will not result in a material adverse effect on its financial condition, results of operations or cash flows.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Earnings (Loss)	3 Months Ended
	Jan. 02, 2016
Accumulated Other Comprehensive Earnings (Loss)	9. ACCUMULATED OTHER COMPREHENSIVE EARNINGS (LOSS) The balance and components of the change in accumulated other comprehensive earnings (loss), net of taxes, are as follows: (dollars in thousands) Unrealized Defined Total Beginning balance, October 3, 2015 $ (533 ) $ (71,697 ) $ (72,230 ) Other comprehensive earnings (loss) before reclassifications (53 ) — (53 ) Reclassification adjustment for gains (losses) included in net earnings (loss) — 47 47 Net current period other comprehensive (loss) gain (53 ) 47 (6 ) Ending balance, January 2, 2016 $ (586 ) $ (71,650 ) $ (72,236 ) The reclassifications out of accumulated other comprehensive earnings (loss) for the thirteen weeks ended January 2, 2016 and December 27, 2014 were as follows: (dollars in thousands) Amount Reclassified from Affected Line Item in the Thirteen Weeks Ended January 2, December 27, Unrealized net holding gain (loss) on investments: Realized gains (losses) – Wholesale Distribution segment $ — $ (15 ) Distribution, selling and — (15 ) Earnings (loss) before — 5 Income taxes $ — $ (10 ) Net earnings (loss) Defined benefit pension plans and other postretirement benefit plans items: Amortization of unrecognized prior service credits $ 314 $ 2,088 (a) Amortization of actuarial losses (387 ) (383 ) (a) (73 ) 1,705 Earnings (loss) before income taxes 26 (602 ) Income taxes $ (47 ) $ 1,103 Net earnings (loss) Total reclassifications for the period $ (47 ) $ 1,093 Net earnings (loss) (a) These accumulated other comprehensive earnings (loss) components are included in the computation of net periodic benefit cost for pension and postretirement benefit plans. See Note 7, “ Pension and Other Postretirement Benefits

Related Party Transactions

Related Party Transactions	3 Months Ended
	Jan. 02, 2016
Related Party Transactions	10. RELATED PARTY TRANSACTIONS Members affiliated with directors of the Company make purchases of merchandise from the Company. Such Members may enter into loan agreements, lease guarantees and subleases and receive benefits and services that are of the type generally offered by the Company to similarly situated eligible Members. Management believes such transactions are on terms that are generally consistent with terms available to other Members similarly situated. During the course of its business, the Company enters into individually negotiated supply agreements with its Members. These agreements typically require the Member to purchase certain agreed amounts of its merchandise requirements from the Company and obligate the Company to supply such merchandise under agreed terms and conditions relating to such matters as pricing and delivery. As of the date of this report, there have been no material changes to the related party transactions disclosed in Note 20 to “Notes to Consolidated Financial Statements” “Financial Statements and Supplementary Data”

Recently Adopted and Recently I

Recently Adopted and Recently Issued Authoritative Accounting Guidance	3 Months Ended
	Jan. 02, 2016
Recently Adopted and Recently Issued Authoritative Accounting Guidance	11. RECENTLY ADOPTED AND RECENTLY ISSUED AUTHORITATIVE ACCOUNTING GUIDANCE In February 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-02, “ Leases (Topic 842) In January 2016, the FASB issued ASU No. 2016-01, “ Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In November 2015, the FASB issued ASU No. 2015-17, “ Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes ASU No. 2015-17 eliminates the current requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. The amendments apply to all organizations that present a classified balance sheet. The amendments are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company will adopt ASU No. 2015-17 commencing in the first quarter of fiscal 2018. The Company does not believe this standard will have a material impact on its consolidated financial statements or the related footnote disclosures. In July 2015, the FASB issued ASU No. 2015-12, “ Plan Accounting – Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965) – (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient In July 2015, the FASB issued ASU No. 2015-11, “ Inventory (Topic 330) – Simplifying the Measurement of Inventory lower of cost and net realizable value estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. In May 2015, the FASB issued ASU No. 2015-07, “ Fair Value Measurement (Topic 820) – Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) In April 2015, the FASB issued ASU No. 2015-04, “ Compensation – Retirement Benefits (Topic 715) – Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets In April 2015, the FASB issued ASU No. 2015-03, “ Interest – Imputation of Interest (Subtopic 835-30) – Simplifying the Presentation of Debt Issuance Costs Since the issuance of ASU No. 2015-03, it has been unclear whether and, if so, how ASU No. 2015-03 applies to revolving debt arrangements. At the Emerging Issues Task Force’s June 18, 2015 meeting, the SEC staff clarified that ASU No. 2015-03 does not address debt issuance costs associated with such arrangements and announced that it would “ not object to an entity deferring and presenting such costs as an asset and subsequently amortizing the costs ratably over the term of the revolving debt arrangement. For public entities, ASU No. 2015-03 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. The Company will adopt ASU No. 2015-03 commencing in the first quarter of fiscal 2017. The Company does not believe this standard will have a material impact on its consolidated financial statements or the related footnote disclosures. In May 2014, the FASB issued ASU No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606) – Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” . Revenue from Contracts with Customers (Topic 606) – Identifying Performance Obligations and Licensing” .

Subsequent Events

Subsequent Events	3 Months Ended
	Jan. 02, 2016
Subsequent Events	12. SUBSEQUENT EVENTS Subsequent events have been evaluated by the Company through the date the financial statements were issued.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Jan. 02, 2016
Principles of Consolidation	The consolidated condensed financial statements include the accounts of Unified Grocers, Inc. and all its subsidiaries (the “Company” or “Unified”). Inter-company transactions and accounts with subsidiaries have been eliminated. The interim financial statements included herein have been prepared by the Company without audit, pursuant to the rules and regulations promulgated by the Securities and Exchange Commission (the “SEC”). Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted pursuant to SEC rules and regulations; nevertheless, management believes that the disclosures are adequate to make the information presented not misleading. These consolidated condensed financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s latest Annual Report on Form 10-K for the year ended October 3, 2015 filed with the SEC. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year.
Use of Estimates	The consolidated condensed financial statements reflect all adjustments that, in the opinion of management, are both of a normal and recurring nature and necessary for the fair presentation of the results for the interim periods presented. The preparation of the consolidated condensed financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated condensed financial statements and accompanying notes. As a result, actual results could differ from those estimates.
Cash Equivalents	The Company’s banking arrangements allow the Company to fund outstanding checks when presented for payment to the financial institutions utilized by the Company for disbursements. This cash management practice frequently results in total issued checks exceeding the available cash balance at a single financial institution. The Company’s policy is to record its cash disbursement accounts with a cash book overdraft in accounts payable. At January 2, 2016 and October 3, 2015, the Company had book overdrafts of $79.7 million and $88.1 million, respectively, classified in accounts payable and included in cash provided by operating activities.
Fair Value Measurements	The Company evaluates the fair value of its assets and liabilities in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, “ Fair Value Measurements and Disclosures Financial Instruments.” Management has evaluated its assets and liabilities valued at fair value as follows: · Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities. · Level 2 – Inputs other than quoted prices included in Level 1 that are either directly or indirectly observable. These inputs include quoted prices for similar assets or liabilities other than quoted prices in Level 1, quoted prices in markets that are not active, or other inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. · Level 3 – Unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. The Company records marketable securities at fair value in accordance with ASC Topic 320, “ Investments – Debt and Equity Securities
Segment Information	Unified is a retailer-owned, grocery wholesale cooperative serving supermarket, specialty and convenience store operators located primarily in the western United States and the Pacific Rim. The Company’s customers range in size from single store operators to regional supermarket chains. The Company sells a wide variety of products typically found in supermarkets. The Company’s customers are comprised of its owners (“Members”) and non-owners (“Non-Members”). Our focus is on our Members, but we also do business with Non-Member customers. The Company sells products through Unified, including its specialty food division, and through its international sales subsidiary. The Company reports all product sales in its Wholesale Distribution segment. The Company also provides support services, including financing, to its customers through the Wholesale Distribution segment and through separate subsidiaries. Finance activities are grouped within Unified’s All Other business activities. The availability of specific products and services may vary by geographic region.

Discontinued Operations (Tables

Discontinued Operations (Tables)	3 Months Ended
	Jan. 02, 2016
Summarized Results of Discontinued Operations	Summarized results of the discontinued operations are as follows for the thirteen weeks ended January 2, 2016, and December 27, 2014: (dollars in thousands) January 2, 2016 December 27, 2014 Revenue $ — $ 4,870 (Loss) earnings from discontinued operations (152 ) 531 Provision for income taxes — 235 (Loss) earnings from discontinued operations net of tax $ (152 ) $ 296
Major Classes of Assets and Liabilities of Discontinued Operations	The major classes of assets and liabilities of the discontinued operations as of October 3, 2015 are as follows: (dollars in thousands) October 3, 2015 Cash $ 8,428 Accounts receivable, net of allowance for bad debt 2,715 Prepaid expenses 676 Deferred tax assets — Property, plant & equipment, net 1,351 Investments 85,052 Other assets 27,682 Assets of discontinued operations – current $ 125,904 Accounts payable $ 592 Accrued liabilities 97,619 Debt — Other reserves 1,471 Liabilities of discontinued operations – current $ 99,682

Fair Value of Financial Instr23

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Jan. 02, 2016
Financial Instruments Recorded at Fair Value and Hierarchy of Those Assets	The following table represents the Company’s financial instruments recorded at fair value and the hierarchy of those assets as of January 2, 2016: (dollars in thousands) Level 1 Level 2 Level 3 Total Mutual funds $ 12,680 $ — $ — $ 12,680 Total $ 12,680 $ — $ — $ 12,680 The following table represents the Company’s financial instruments recorded at fair value and the hierarchy of those assets as of October 3, 2015: (dollars in thousands) Level 1 Level 2 Level 3 Total Mutual funds $ 12,546 $ — $ — $ 12,546 Total $ 12,546 $ — $ — $ 12,546

Investments (Tables)

Investments (Tables)	3 Months Ended
	Jan. 02, 2016
Amortized Cost and Fair Value of Investments	The amortized cost and fair value of investments are as follows: (dollars in thousands) January 2, 2016 Amortized Gross Gross Fair Common stock, at cost $ 13,069 Total investments $ 13,069 (dollars in thousands) October 3, 2015 Amortized Gross Gross Fair Common stock, at cost $ 13,069 Total investments $ 13,069
Net Investment Income	Net investment income, which is included in net sales, is summarized as follows: (dollars in thousands) Thirteen Weeks Ended January 2, December 27, Dividend income $ 6 $ — 6 — Less: investment expenses — — $ 6 $ —

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Jan. 02, 2016
Information about Operating Segments	Information about the Company’s operating segments is summarized below. (dollars in thousands) Thirteen Weeks Ended January 2, December 27, Net sales Wholesale distribution: Gross billings $ 998,952 $ 994,272 Less: Gross billings through vendor direct arrangements (26,381 ) (26,777 ) Wholesale distribution: Net sales 972,571 967,495 All other 435 421 Inter-segment eliminations (141 ) (148 ) Total net sales $ 972,865 $ 967,768 Operating income (loss) Wholesale distribution $ 3,092 $ 4,681 All other 139 121 Total operating income 3,231 4,802 Interest expense (2,482 ) (2,718 ) Loss on early extinguishment of debt — (3,200 ) Estimated patronage dividends (2,412 ) (1,492 ) Income tax (provision) benefit (14 ) 1,075 Net loss from continuing operations $ (1,677 ) $ (1,533 ) (Loss) earnings from discontinued operations, net of tax (152 ) 296 Net loss $ (1,829 ) $ (1,237 ) Depreciation and amortization Wholesale distribution $ 7,956 $ 7,222 All other 20 20 Total depreciation and amortization $ 7,976 $ 7,242 Capital expenditures Wholesale distribution $ 1,458 $ 845 All other — — Total capital expenditures $ 1,458 $ 845 Identifiable assets at January 2, 2016 and December 27, 2014 Wholesale distribution $ 785,913 $ 767,194 Discontinued operations — 120,896 All other 22,821 24,583 Total identifiable assets $ 808,734 $ 912,673

Pension and Other Postretirem26

Pension and Other Postretirement Benefits (Tables)	3 Months Ended
	Jan. 02, 2016
Components of Net Periodic Costs for Pension and Other Postretirement Benefits	The components of net periodic cost for pension and other postretirement benefits for the respective thirteen weeks ended January 2, 2016 and October 3, 2015 consist of the following: (dollars in thousands) Pension Benefits Other Postretirement Benefits Thirteen Weeks Ended Thirteen Weeks Ended January 2, December 27, January 2, December 27, Service cost $ 95 $ 1,536 $ 9 $ 14 Interest cost 2,566 3,030 271 303 Expected return on plan assets (3,644 ) (4,138 ) — — Amortization of prior service (credit) cost (2 ) (7 ) (312 ) (2,081 ) Recognized actuarial loss 516 357 (129 ) 26 Net periodic benefit cost (income) $ (469 ) $ 778 $ (161 ) $ (1,738 )

Accumulated Other Comprehensi27

Accumulated Other Comprehensive Earnings (Loss) (Tables)	3 Months Ended
	Jan. 02, 2016
Changes in Accumulated Other Comprehensive Earnings (Loss) by Balance and Component, Net of Tax	The balance and components of the change in accumulated other comprehensive earnings (loss), net of taxes, are as follows: (dollars in thousands) Unrealized Defined Total Beginning balance, October 3, 2015 $ (533 ) $ (71,697 ) $ (72,230 ) Other comprehensive earnings (loss) before reclassifications (53 ) — (53 ) Reclassification adjustment for gains (losses) included in net earnings (loss) — 47 47 Net current period other comprehensive (loss) gain (53 ) 47 (6 ) Ending balance, January 2, 2016 $ (586 ) $ (71,650 ) $ (72,236 )
Reclassifications Out of Accumulated Other Comprehensive Earnings (Loss)	The reclassifications out of accumulated other comprehensive earnings (loss) for the thirteen weeks ended January 2, 2016 and December 27, 2014 were as follows: (dollars in thousands) Amount Reclassified from Affected Line Item in the Thirteen Weeks Ended January 2, December 27, Unrealized net holding gain (loss) on investments: Realized gains (losses) – Wholesale Distribution segment $ — $ (15 ) Distribution, selling and — (15 ) Earnings (loss) before — 5 Income taxes $ — $ (10 ) Net earnings (loss) Defined benefit pension plans and other postretirement benefit plans items: Amortization of unrecognized prior service credits $ 314 $ 2,088 (a) Amortization of actuarial losses (387 ) (383 ) (a) (73 ) 1,705 Earnings (loss) before income taxes 26 (602 ) Income taxes $ (47 ) $ 1,103 Net earnings (loss) Total reclassifications for the period $ (47 ) $ 1,093 Net earnings (loss) (a) These accumulated other comprehensive earnings (loss) components are included in the computation of net periodic benefit cost for pension and postretirement benefit plans. See Note 7, “ Pension and Other Postretirement Benefits

Basis of Presentation - Additio

Basis of Presentation - Additional Information (Detail) - USD ($) $ in Millions	Jan. 02, 2016	Oct. 03, 2015
Accounts payable
Basis Of Presentation And Significant Accounting Policies [Line Items]
Book overdrafts	$ 79.7	$ 88.1

Discontinued Operations - Addit

Discontinued Operations - Additional Information (Detail) - USD ($) $ in Thousands	Apr. 16, 2015	Jan. 02, 2016	Oct. 03, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of discontinued operations		$ 26,222
AmTrust Financial Services, Inc | Master Services Agreement
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Annual payment period	5 years
Earn-out payment as percentage of gross written premium	4.50%
Discontinued Operations, Disposed of by Sale | Unified Grocers Insurance Services
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Date of sale		Oct. 7, 2015
Proceeds from sale of discontinued operations		$ 26,200
Purchase price adjustment		400
Discontinued Operations, Disposed of by Sale | Unified Grocers Insurance Services | AmTrust Financial Services, Inc
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Impairment on investment			$ 1,300
Wrote-off in expenses related to investigation			700
Selling costs related to acquired companies			1,200
Operating loss related to acquired companies			$ (3,700)
Additional expenses attributable to audit committee investigation		$ 200

Summarized Results of Discontin

Summarized Results of Discontinued Operations (Detail) - USD ($) $ in Thousands	3 Months Ended
	Jan. 02, 2016	Dec. 27, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Provision for income taxes	$ 0	$ 235
(Loss) earnings from discontinued operations net of tax	(152)	296
Discontinued Operations, Disposed of by Sale | Unified Grocers Insurance Services
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue		4,870
(Loss) earnings from discontinued operations	(152)	531
Provision for income taxes		235
(Loss) earnings from discontinued operations net of tax	$ (152)	$ 296

Major Classes of Assets and Lia

Major Classes of Assets and Liabilities of Discontinued Operations (Detail) - Discontinued Operations, Disposed of by Sale - Unified Grocers Insurance Services $ in Thousands	Oct. 03, 2015USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash	$ 8,428
Accounts receivable, net of allowance for bad debt	2,715
Prepaid expenses	676
Deferred tax assets	0
Property, plant & equipment, net	1,351
Investments	85,052
Other assets	27,682
Assets of discontinued operations - current	125,904
Accounts payable	592
Accrued liabilities	97,619
Debt	0
Other reserves	1,471
Liabilities of discontinued operations - current	$ 99,682

Fair Value of Financial Instr32

Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Jan. 02, 2016	Oct. 03, 2015
Fair Value of Financial Instruments [Line Items]
Other assets, mutual funds	$ 12.7	$ 12.5
Notes payable, fair value	276.8	278.8
Notes payable, carrying value	$ 278.4	$ 278.5
Customer Concentration Risk | Sales Revenue, Net | Cash & Carry Stores, LLC
Fair Value of Financial Instruments [Line Items]
Concentration of risk percentage	15.00%
Customer Concentration Risk | Sales Revenue, Net | Ten largest customers
Fair Value of Financial Instruments [Line Items]
Concentration of risk percentage	50.00%
Credit Concentration Risk | Accounts receivable | Ten largest customers
Fair Value of Financial Instruments [Line Items]
Concentration of risk percentage	46.00%	43.00%
Credit Concentration Risk | Accounts receivable | Largest Customer
Fair Value of Financial Instruments [Line Items]
Concentration of risk percentage	11.00%	8.00%

Financial Instruments Recorded

Financial Instruments Recorded at Fair Value and Hierarchy of Those Assets (Detail) - USD ($) $ in Thousands	Jan. 02, 2016	Oct. 03, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial instruments at fair value	$ 12,680	$ 12,546
Mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial instruments at fair value	12,680	12,546
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial instruments at fair value	12,680	12,546
Level 1 | Mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial instruments at fair value	$ 12,680	$ 12,546

Amortized Cost and Fair Value o

Amortized Cost and Fair Value of Investments (Detail) - USD ($) $ in Thousands	Jan. 02, 2016	Oct. 03, 2015
Schedule of Investments [Line Items]
Amortized Cost	$ 0	$ 0
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	13,069	13,069
Common stock, at cost
Schedule of Investments [Line Items]
Amortized Cost	0	0
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	$ 13,069	$ 13,069

Investments - Additional Inform

Investments - Additional Information (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Jan. 02, 2016	Oct. 03, 2015
Investment [Line Items]
Trading or held-to-maturity securities	$ 0	$ 0
Dividend income	6,000
National Consumer Cooperative Bank
Investment [Line Items]
Investment accounted for using the cost method of accounting	4,100,000	4,100,000
Dividend income	6,000	0
Western Family Holding Company
Investment [Line Items]
Investment accounted for using the equity method of accounting	$ 9,000,000	$ 9,000,000
Percentage of investment accounted for using the equity method of accounting	17.20%	17.20%

Net Investment Income (Detail)

Net Investment Income (Detail) - USD ($) $ in Thousands	3 Months Ended
	Jan. 02, 2016	Dec. 27, 2014
Net Investment Income [Line Items]
Dividend income	$ 6
Investment income	6
Less: investment expenses	0	$ 0
Investment Income, Net, Total	$ 6

Segment Information - Additiona

Segment Information - Additional Information (Detail) $ in Thousands	3 Months Ended
	Jan. 02, 2016USD ($)	Dec. 27, 2014USD ($)Entity
Segment Reporting Disclosure [Line Items]
Gross billings	$ 999,246	$ 994,545
Wholesale distribution
Segment Reporting Disclosure [Line Items]
Gross billings	$ 999,000	$ 994,300
Insurance
Segment Reporting Disclosure [Line Items]
Subsidiaries in the insurance segment | Entity		2
Segment concentration risk | Assets, Total | Wholesale distribution
Segment Reporting Disclosure [Line Items]
Concentration of risk percentage	97.00%
Segment concentration risk | Assets, Total | Insurance
Segment Reporting Disclosure [Line Items]
Concentration of risk percentage		13.00%
Segment concentration risk | Assets, Total | All other
Segment Reporting Disclosure [Line Items]
Concentration of risk percentage	3.00%
Segment concentration risk | Total net sales | Wholesale distribution
Segment Reporting Disclosure [Line Items]
Concentration of risk percentage	100.00%
Segment concentration risk | Total net sales | All other | Maximum
Segment Reporting Disclosure [Line Items]
Concentration of risk percentage	1.00%
Product Concentration Risk | Sales Revenue, Segment | Wholesale distribution | Non Perishable Products
Segment Reporting Disclosure [Line Items]
Concentration of risk percentage	67.20%	64.00%
Segment net sales attributable to sales of products	$ 653,600	$ 618,700
Product Concentration Risk | Sales Revenue, Segment | Wholesale distribution | Perishable products
Segment Reporting Disclosure [Line Items]
Concentration of risk percentage	32.80%	36.00%
Segment net sales attributable to sales of products	$ 318,800	$ 348,800
Product Concentration Risk | Sales Revenue, Segment | Wholesale distribution | Retail support services
Segment Reporting Disclosure [Line Items]
Concentration of risk percentage	1.00%	1.00%

Summarized Information about Op

Summarized Information about Operating Segments (Detail) - USD ($) $ in Thousands	3 Months Ended
	Jan. 02, 2016	Dec. 27, 2014	Oct. 03, 2015
Segment Reporting Information [Line Items]
Gross billings	$ 999,246	$ 994,545
Net sales	972,865	967,768
Operating income (loss)	3,231	4,802
Interest expense	(2,482)	(2,718)
Depreciation and amortization	7,976	7,242
Loss on early extinguishment of debt		(3,200)
Capital expenditures	1,458	845
Estimated patronage dividends	(2,412)	(1,492)
Identifiable assets	808,734	912,673	$ 964,325
Income tax (provision) benefit	(14)	1,075
Net loss from continuing operations	(1,677)	(1,533)
(Loss) earnings from discontinued operations, net of tax	(152)	296
Net earnings (loss)	(1,829)	(1,237)
Wholesale distribution
Segment Reporting Information [Line Items]
Gross billings	999,000	994,300
Operating Segments | Wholesale distribution
Segment Reporting Information [Line Items]
Gross billings	998,952	994,272
Less: Gross billings through vendor direct arrangements	(26,381)	(26,777)
Net sales	972,571	967,495
Operating income (loss)	3,092	4,681
Depreciation and amortization	7,956	7,222
Capital expenditures	1,458	845
Identifiable assets	785,913	767,194
Operating Segments | All other
Segment Reporting Information [Line Items]
Net sales	435	421
Operating income (loss)	139	121
Depreciation and amortization	20	20
Identifiable assets	22,821	24,583
Inter-segment eliminations
Segment Reporting Information [Line Items]
Net sales	$ (141)	(148)
Discontinued Operations, Disposed of by Sale
Segment Reporting Information [Line Items]
Identifiable assets		$ 120,896

Notes Payable - Additional Info

Notes Payable - Additional Information (Detail) - Credit Agreement - USD ($) $ in Millions	Jan. 02, 2016	Oct. 03, 2015
Revolving Loan
Debt Instrument [Line Items]
Amount outstanding under agreement	$ 163	$ 161.8
Interest rate at the period end	2.35%	1.99%
Term Loan
Debt Instrument [Line Items]
Amount outstanding under agreement	$ 90	$ 92.5
Interest rate at the period end	2.42%	2.20%
FILO Facility
Debt Instrument [Line Items]
Amount outstanding under agreement	$ 20.8	$ 20.7
Interest rate at the period end	3.67%	3.20%

Pension and Other Postretirem40

Pension and Other Postretirement Benefits - Additional Information (Detail) - USD ($)	3 Months Ended
	Jan. 02, 2016	Dec. 27, 2014	Oct. 03, 2015
ESPPIII
Defined Benefit Plan Disclosure [Line Items]
Cash surrender value of life insurance policies	$ 21,100,000		$ 20,800,000
Estimated fair value of mutual funds	10,600,000		10,500,000
ESPPIII | Defined Benefit Plan 2016
Defined Benefit Plan Disclosure [Line Items]
Benefits payments made	200,000
Estimated minimum contributions	4,000,000
ESPPIII | Long-term liabilities, other
Defined Benefit Plan Disclosure [Line Items]
Accrued benefit cost	40,900,000		40,700,000
Unified Cash Balance Plan
Defined Benefit Plan Disclosure [Line Items]
Benefits payments made	$ 8,700,000	$ 7,900,000
Unified Cash Balance Plan | Minimum
Defined Benefit Plan Disclosure [Line Items]
Plan balance annual interest credit rate	5.00%
Unified Cash Balance Plan | Minimum | Defined Benefit Plan 2015
Defined Benefit Plan Disclosure [Line Items]
Estimated minimum contributions	$ 0
Unified Cash Balance Plan | Minimum | Defined Benefit Plan 2016
Defined Benefit Plan Disclosure [Line Items]
Discretionary contributions amount	0
Supplemental Executive Retirement Plan
Defined Benefit Plan Disclosure [Line Items]
Estimated fair value of mutual funds	2,000,000		2,000,000
Accrued benefit cost	$ 400,000	$ 300,000
Officers required service years	5 years
Supplemental Executive Retirement Plan | Long-term liabilities, other
Defined Benefit Plan Disclosure [Line Items]
Accrued benefit cost	$ 3,600,000		$ 3,200,000

Components of Net Periodic Cost

Components of Net Periodic Costs for Pension and Other Postretirement Benefits (Detail) - USD ($) $ in Thousands	3 Months Ended
	Jan. 02, 2016	Dec. 27, 2014
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 95	$ 1,536
Interest cost	2,566	3,030
Expected return on plan assets	(3,644)	(4,138)
Amortization of prior service (credit) cost	(2)	(7)
Recognized actuarial loss	516	357
Net periodic benefit cost (income)	(469)	778
Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	9	14
Interest cost	271	303
Amortization of prior service (credit) cost	(312)	(2,081)
Recognized actuarial loss	(129)	26
Net periodic benefit cost (income)	$ (161)	$ (1,738)

Changes in Accumulated Other Co

Changes in Accumulated Other Comprehensive Earnings (Loss) by Balance and Component, Net of Tax (Detail) $ in Thousands	3 Months Ended
	Jan. 02, 2016USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (72,230)
Other comprehensive earnings (loss) before reclassifications	(53)
Reclassification adjustment for gains (losses) included in net earnings (loss)	47
Net current period other comprehensive (loss) gain	(6)
Ending balance	(72,236)
Accumulated Net Unrealized Investment Gain (Loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(533)
Other comprehensive earnings (loss) before reclassifications	(53)
Net current period other comprehensive (loss) gain	(53)
Ending balance	(586)
Accumulated Defined Benefit Plans Adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(71,697)
Reclassification adjustment for gains (losses) included in net earnings (loss)	47
Net current period other comprehensive (loss) gain	47
Ending balance	$ (71,650)

Reclassifications Out of Accumu

Reclassifications Out of Accumulated Other Comprehensive Earnings (Loss) (Detail) - USD ($) $ in Thousands		3 Months Ended
		Jan. 02, 2016	Dec. 27, 2014
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Distribution, selling and administrative expenses		$ (70,150)	$ (64,926)
Earnings (loss) before income taxes		(1,663)	(2,608)
Income taxes		(14)	1,075
Net earnings (loss)		(1,829)	(1,237)
Reclassification Out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net earnings (loss)		(47)	1,093
Reclassification Out of Accumulated Other Comprehensive Income | Accumulated Net Unrealized Investment Gain (Loss)
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Earnings (loss) before income taxes			(15)
Income taxes			5
Net earnings (loss)			(10)
Reclassification Out of Accumulated Other Comprehensive Income | Accumulated Net Unrealized Investment Gain (Loss) | Wholesale distribution
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Distribution, selling and administrative expenses			(15)
Reclassification Out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amount reclassified from accumulated other comprehensive earnings (loss), amortization of unrecognized prior service credits	[1]	314	2,088
Amount reclassified from accumulated other comprehensive earnings (loss), amortization of actuarial (losses)	[1]	(387)	(383)
Earnings (loss) before income taxes		(73)	1,705
Income taxes		26	(602)
Net earnings (loss)		$ (47)	$ 1,103
[1]	These accumulated other comprehensive earnings (loss) components are included in the computation of net periodic benefit cost for pension and postretirement benefit plans. See Note 7, "Pension and Other Postretirement Benefits" for further information.