Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | ||
Dec. 28, 2013 | Feb. 03, 2014 | Feb. 03, 2014 | |
Class A Common Stock [Member] | Class B Common Stock [Member] | ||
Document Type | '10-Q | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 28-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q1 | ' | ' |
Trading Symbol | 'IMKTA | ' | ' |
Entity Registrant Name | 'INGLES MARKETS INC | ' | ' |
Entity Central Index Key | '0000050493 | ' | ' |
Current Fiscal Year End Date | '--09-27 | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 13,459,637 | 9,300,139 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Dec. 28, 2013 | Sep. 28, 2013 |
Current Assets: | ' | ' |
Cash and cash equivalents | $4,625,926 | $16,844,007 |
Receivables - net | 60,514,917 | 59,929,491 |
Inventories | 335,049,224 | 329,691,256 |
Other current assets | 22,832,082 | 28,075,314 |
Total Current Assets | 423,022,149 | 434,540,068 |
Property and Equipment b Net | 1,207,764,054 | 1,212,132,055 |
Other Assets | 22,936,403 | 22,655,614 |
Total Assets | 1,653,722,606 | 1,669,327,737 |
Current Liabilities: | ' | ' |
Current portion of long-term debt | 19,208,217 | 18,956,761 |
Accounts payable - trade | 150,271,105 | 160,314,263 |
Accrued expenses and current portion of other long-term liabilities | 48,825,290 | 72,002,983 |
Total Current Liabilities | 218,304,612 | 251,274,007 |
Deferred Income Taxes | 84,951,000 | 86,082,000 |
Long-Term Debt | 905,843,620 | 893,514,238 |
Other Long-Term Liabilities | 28,066,517 | 27,818,217 |
Total Liabilities | 1,237,165,749 | 1,258,688,462 |
Stockholdersb Equity | ' | ' |
Preferred stock, $0.05 par value; 10,000,000 shares authorized; no shares issued | ' | ' |
Common stocks: | ' | ' |
Paid-in capital in excess of par value | 77,186,249 | 77,186,249 |
Retained earnings | 338,232,619 | 332,315,037 |
Total Stockholdersb Equity | 416,556,857 | 410,639,275 |
Total Liabilities and Stockholdersb Equity | 1,653,722,606 | 1,669,327,737 |
Class A Common Stock [Member] | ' | ' |
Common stocks: | ' | ' |
Common stock, value | 672,032 | 671,899 |
Class B Common Stock [Member] | ' | ' |
Common stocks: | ' | ' |
Common stock, value | $465,957 | $466,090 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 28, 2013 | Sep. 28, 2013 |
Preferred stock, par value | $0.05 | $0.05 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Class A Common Stock [Member] | ' | ' |
Common stock, par value | $0.05 | $0.05 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 13,440,637 | 13,437,975 |
Common stock, shares outstanding | 13,440,637 | 13,437,975 |
Class B Common Stock [Member] | ' | ' |
Common stock, par value | $0.05 | $0.05 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 9,319,139 | 9,321,801 |
Common stock, shares outstanding | 9,319,139 | 9,321,801 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Income (USD $) | 3 Months Ended | |
Dec. 28, 2013 | Dec. 29, 2012 | |
Net sales | $945,124,870 | $934,977,527 |
Cost of goods sold | 741,619,203 | 726,772,286 |
Gross profit | 203,505,667 | 208,205,241 |
Operating and administrative expenses | 177,430,181 | 174,845,782 |
Gain from sale or disposal of assets | 124,873 | 121,547 |
Income from operations | 26,200,359 | 33,481,006 |
Other income, net | 840,001 | 564,191 |
Interest expense | 11,782,231 | 15,559,549 |
Income before income taxes | 15,258,129 | 18,485,648 |
Income tax expense | 5,725,000 | 6,918,000 |
Net income | $9,533,129 | $11,567,648 |
Class A Common Stock [Member] | ' | ' |
Per share amounts: | ' | ' |
Basic earnings per common share | $0.44 | $0.50 |
Diluted earnings per common share | $0.42 | $0.48 |
Cash dividends per common share: | ' | ' |
Common Stock | $0.17 | $0.99 |
Class B Common Stock [Member] | ' | ' |
Per share amounts: | ' | ' |
Basic earnings per common share | $0.40 | $0.45 |
Diluted earnings per common share | $0.40 | $0.45 |
Cash dividends per common share: | ' | ' |
Common Stock | $0.15 | $0.90 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements Of Changes In Stockholders' Equity (USD $) | Class A Common Stock [Member] | Class B Common Stock [Member] | Paid-In Capital In Excess of Par Value [Member] | Retained Earnings [Member] | Total |
Balance at Sep. 29, 2012 | $647,682 | $565,307 | $114,236,249 | $341,964,231 | $457,413,469 |
Balance (in shares) at Sep. 29, 2012 | 12,953,635 | 11,306,141 | ' | ' | ' |
Net income | ' | ' | ' | 11,567,648 | 11,567,648 |
Cash dividends declared | ' | ' | ' | -22,999,891 | -22,999,891 |
Common stock conversions (in shares) | 3,515 | -3,515 | ' | ' | ' |
Common stock conversions | 176 | -176 | ' | ' | ' |
Balance at Dec. 29, 2012 | 647,858 | 565,131 | 114,236,249 | 330,531,988 | 445,981,226 |
Balance (in shares) at Dec. 29, 2012 | 12,957,150 | 11,302,626 | ' | ' | ' |
Balance at Sep. 28, 2013 | 671,899 | 466,090 | 77,186,249 | 332,315,037 | 410,639,275 |
Balance (in shares) at Sep. 28, 2013 | 13,437,975 | 9,321,801 | ' | ' | ' |
Net income | ' | ' | ' | 9,533,129 | 9,533,129 |
Cash dividends declared | ' | ' | ' | -3,615,547 | -3,615,547 |
Common stock conversions (in shares) | 2,662 | -2,662 | ' | ' | ' |
Common stock conversions | 133 | -133 | ' | ' | ' |
Balance at Dec. 28, 2013 | $672,032 | $465,957 | $77,186,249 | $338,232,619 | $416,556,857 |
Balance (in shares) at Dec. 28, 2013 | 13,440,637 | 9,319,139 | ' | ' | ' |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | |
Dec. 28, 2013 | Dec. 29, 2012 | |
Cash Flows from Operating Activities: | ' | ' |
Net income | $9,533,129 | $11,567,648 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization expense | 23,925,202 | 23,622,646 |
Gain on disposals of property and equipment | -124,873 | -121,547 |
Receipt of advance payments on purchase contracts | 750,000 | 1,259,188 |
Recognition of advance payments on purchase contracts | -816,011 | -873,388 |
Deferred income taxes | -1,616,000 | -1,281,000 |
Changes in operating assets and liabilities: | ' | ' |
Receivables | -585,427 | 68,990 |
Inventory | -5,357,968 | -13,633,479 |
Other assets | 5,129,577 | -233,913 |
Accounts payable and accrued expenses | -21,311,417 | -25,699,214 |
Net Cash Provided (Used) by Operating Activities | 9,526,212 | -5,324,069 |
Cash Flows from Investing Activities: | ' | ' |
Proceeds from sales of property and equipment | 130,119 | 171,850 |
Capital expenditures | -30,839,703 | -28,079,634 |
Net Cash Used by Investing Activities | -30,709,584 | -27,907,784 |
Cash Flows from Financing Activities: | ' | ' |
Proceeds from short-term borrowings | 161,841,378 | 271,806,734 |
Payments on short-term borrowings | -147,406,112 | -227,093,088 |
Principal payments on long-term borrowings | -1,854,428 | -2,882,864 |
Dividends paid | -3,615,547 | -3,833,272 |
Net Cash Provided by Financing Activities | 8,965,291 | 37,997,510 |
Net (Decrease) Increase in Cash and Cash Equivalents | -12,218,081 | 4,765,657 |
Cash and cash equivalents at beginning of period | 16,844,007 | 4,683,410 |
Cash and Cash Equivalents at End of Period | $4,625,926 | $9,449,067 |
Basis_Of_Preparation
Basis Of Preparation | 3 Months Ended |
Dec. 28, 2013 | |
Basis Of Preparation [Abstract] | ' |
Basis Of Preparation | ' |
A. BASIS OF PREPARATION | |
In the opinion of management, the accompanying unaudited interim financial statements contain all adjustments necessary to present fairly the Company’s financial position as of December 28, 2013, and the results of operations, changes in stockholders’ equity and cash flows for the three months ended December 28, 2013 and December 29, 2012. The adjustments made are of a normal recurring nature. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission for Form 10-Q. It is suggested that these unaudited interim financial statements be read in conjunction with the audited financial statements and the notes thereto included in the Annual Report on Form 10-K for the year ended September 28, 2013, filed by the Company under the Securities Exchange Act of 1934 on December 12, 2013. | |
The results of operations for the three-month period ended December 28, 2013 are not necessarily indicative of the results to be expected for the full fiscal year. | |
New_Accounting_Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Dec. 28, 2013 | |
New Accounting Pronouncements [Abstract] | ' |
New Accounting Pronouncements | ' |
B. NEW ACCOUNTING PRONOUNCEMENTS | |
There were no accounting standards adopted in the three-month period ended December 28, 2013. | |
Allowance_For_Doubtful_Account
Allowance For Doubtful Accounts | 3 Months Ended |
Dec. 28, 2013 | |
Allowance For Doubtful Accounts [Abstract] | ' |
Allowance For Doubtful Accounts | ' |
C. ALLOWANCE FOR DOUBTFUL ACCOUNTS | |
Receivables are presented net of an allowance for doubtful accounts of $764,000 at December 28, 2013 and $773,000 at September 28, 2013, respectively. | |
Income_Taxes
Income Taxes | 3 Months Ended |
Dec. 28, 2013 | |
Income Taxes [Abstract] | ' |
Income Taxes | ' |
D. INCOME TAXES | |
The Company’s continuing practice is to recognize interest and penalties related to uncertain tax positions and related matters in income tax expense. As of December 28, 2013, the Company had approximately $49,000 accrued for interest and penalties. | |
The Company’s effective tax rate differs from the federal statutory rate primarily as a result of state income taxes and tax credits. As of December 28, 2013, the Company had gross unrecognized tax benefits of approximately $121,000, all of which, if recognized, would affect the effective tax rate. The Company does not expect that the total amounts of unrecognized tax benefits will significantly increase or decrease within the next twelve months. | |
The Company files income tax returns with federal and various state jurisdictions. With few exceptions, the Company is no longer subject to state income tax examinations by tax authorities for the years before 2009. Additionally, the Internal Revenue Service has completed its examination of the Company’s U.S. Federal income tax returns filed through fiscal 2008. | |
The Company had approximately $6.4 million and $13.8 million of refundable income taxes included in the caption “Other current assets” in the Condensed Consolidated Balance Sheets at December 28, 2013 and September 28, 2013, respectively. | |
On September 13, 2013, the IRS released final tangible property regulations under Sections 162(a) and 263(a) of the Internal Revenue Code regarding the deduction and capitalization of expenditures related to tangible property as well as dispositions of tangible property. These regulations will be effective for the Company’s fiscal year ending September 26, 2015. Taxpayers may elect to apply them to tax years beginning on or after January 1, 2012. The Company does not anticipate that the regulations will have a material impact on the Company’s consolidated results of operations, cash flows or financial position. | |
Accrued_Expenses_And_Current_P
Accrued Expenses And Current Portion Of Other Long-Term Liabilities | 3 Months Ended | ||||||
Dec. 28, 2013 | |||||||
Accrued Expenses And Current Portion Of Other Long-Term Liabilities [Abstract] | ' | ||||||
Accrued Expenses And Current Portion Of Other Long-Term Liabilities | ' | ||||||
E. ACCRUED EXPENSES AND CURRENT PORTION OF OTHER LONG-TERM LIABILITIES | |||||||
Accrued expenses and current portion of other long-term liabilities consist of the following: | |||||||
December 28, | September 28, | ||||||
2013 | 2013 | ||||||
Property, payroll and other taxes payable | $ | 9,898,534 | $ | 16,771,941 | |||
Salaries, wages and bonuses payable | 21,032,958 | 25,129,025 | |||||
Self-insurance liabilities | 12,198,331 | 12,844,143 | |||||
Interest payable | 2,555,924 | 12,993,252 | |||||
Other | 3,139,543 | 4,264,622 | |||||
$ | 48,825,290 | $ | 72,002,983 | ||||
Self-insurance liabilities are established for general liability claims, workers’ compensation and employee group medical and dental benefits based on claims filed and estimates of claims incurred but not reported. The Company is insured for covered costs in excess of $750,000 per occurrence for workers’ compensation, $500,000 for general liability and $325,000 per covered person for medical care benefits for a policy year. At December 28, 2013 the Company’s self-insurance reserves totaled $29.0 million. Of this amount, $12.2 million is accounted for as a current liability and $16.8 million as a long-term liability. Employee insurance expense, including workers’ compensation and medical care benefits, net of employee contributions, totaled $6.2 million and $8.5 million for the three-month periods ended December 28, 2013 and December 29, 2012, respectively. | |||||||
LongTerm_Debt
Long-Term Debt | 3 Months Ended | |
Dec. 28, 2013 | ||
Long-Term Debt [Abstract] | ' | |
Long-Term Debt | ' | |
F. LONG-TERM DEBT | ||
In June 2013, the Company issued $700.0 million aggregate principal amount of senior notes due in 2023 (the “Notes”) in a private placement. The Notes bear an interest rate of 5.750% per annum and were issued at par. Note proceeds were used to repay $575.0 million aggregate principal amount of senior notes maturing in 2017, $52.0 million of indebtedness outstanding under the Company’s line of credit, and to pay costs related to the offering of the Notes. Remaining Note proceeds will be used for general corporate purposes, including future capital expenditures. | ||
The Company filed a registration statement with the Securities and Exchange Commission to exchange the private placement notes with registered notes. | ||
The Company may redeem all or a portion of the Notes at any time on or after June 15, 2018 at the following redemption prices (expressed as percentages of the principal amount), if redeemed during the 12-month period beginning June 15 of the years indicated below: | ||
Year | ||
2018 | 102.88% | |
2019 | 101.92% | |
2020 | 100.96% | |
2021 and thereafter | 100.00% | |
In connection with the offering of the Notes, the Company extended the maturity date of its $175.0 million line of credit from December 29, 2015 to June 12, 2018 and modified certain interest rate options and covenants. At December 28, 2013, the Company had $14.4 million of borrowings outstanding under the line of credit. There were no outstanding borrowings under the line of credit at September 28, 2013. | ||
The line of credit provides the Company with various interest rate options based on the prime rate, the Federal Funds Rate, or the London Interbank Offering Rate. The line allows the Company to issue up to $30.0 million in unused letters of credit, of which $10.3 million of unused letters of credit were issued at December 28, 2013. The Company is not required to maintain compensating balances in connection with the line of credit. | ||
On December 29, 2010, the Company completed the funding of $99.7 million of Recovery Zone Facility Bonds (the “Bonds”) for: (A) acquisition, construction and equipping of an approximately 830,000 square foot new warehouse and distribution center located in Buncombe County, North Carolina (the “Project”), and (B) the payment of certain expenses incurred in connection with the issuance of the Bonds. The final maturity date of the Bonds is January 1, 2036. | ||
The Bonds were issued by the Buncombe County Industrial Facilities and Pollution Control Financing Authority and were purchased by certain financial institutions. Under a Continuing Covenant and Collateral Agency Agreement (the “Covenant Agreement”) between the financial institutions and the Company, the financial institutions would hold the Bonds until January 2, 2018, subject to certain events. Mandatory redemption of the Bonds by the Company in the annual amount of $4,530,000 began on January 1, 2014. | ||
In connection with the offering of the Notes, the Company extended the maturity date of the Covenant Agreement from January 2, 2018 to June 30, 2021 and modified certain interest rate options and covenants. The Company may redeem the Bonds without penalty or premium at any time prior to June 30, 2021. | ||
Interest earned by bondholders on the Bonds is exempt from Federal and North Carolina income taxation. The interest rate on the Bonds is equal to one month LIBOR (adjusted monthly) plus a credit spread, adjusted to reflect the income tax exemption. | ||
The Company’s obligation to repay the Bonds is collateralized by the Project. Additional collateral was required in order to meet certain loan to value criteria in the Covenant Agreement. The Covenant Agreement incorporates substantially all financial covenants included in the line of credit. | ||
The Notes, the Bonds and the line of credit contain provisions that under certain circumstances would permit lending institutions to terminate or withdraw their respective extensions of credit to the Company. Included among the triggering factors permitting the termination or withdrawal of the line of credit to the Company are certain events of default, including both monetary and non-monetary defaults, the initiation of bankruptcy or insolvency proceedings, and the failure of the Company to meet certain financial covenants designated in its respective loan documents. The Company was in compliance with all financial covenants related to the line of credit at December 28, 2013. | ||
The Company’s long-term debt agreements generally have cross-default provisions which could result in the acceleration of payments due under the Company’s line of credit, Bond and Notes indenture in the event of default under any one instrument. | ||
Dividends
Dividends | 3 Months Ended |
Dec. 28, 2013 | |
Dividends [Abstract] | ' |
Dividends | ' |
G. DIVIDENDS | |
The Company paid cash dividends of $0.165 for each share of Class A Common Stock and $0.15 for each share of Class B Common Stock on October 24, 2013 to stockholders of record on October 10, 2013. | |
On December 7, 2012, the Company declared a special dividend of $0.66 per share of Class A Common Stock and $0.60 per share of Class B Common Stock payable on December 31, 2012 to shareholders of record on December 21, 2012. The Company paid cash dividends of $0.165 for each share of Class A Common Stock and $0.15 for each share of Class B Common Stock on December 31, 2012 to stockholders of record on December 21, 2012. This dividend normally would have been declared and paid in January 2013. | |
For additional information regarding the dividend rights of the Class A Common Stock and Class B Common Stock, please see Note 8, “Stockholders’ Equity” to the Consolidated Financial Statements of the Annual Report on Form 10-K filed by the Company under the Securities Exchange Act of 1934 on December 12, 2013. | |
Earnings_Per_Common_Share
Earnings Per Common Share | 3 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Earnings Per Common Share [Abstract] | ' | ||||||||||||
Earnings Per Common Share | ' | ||||||||||||
H. EARNINGS PER COMMON SHARE | |||||||||||||
The Company has two classes of common stock: Class A which is publicly traded, and Class B, which has no public market. The Class B Common Stock has restrictions on transfer; however, each share is convertible into one share of Class A Common Stock at any time. Each share of Class A Common Stock has one vote per share and each share of Class B Common Stock has ten votes per share. Each share of Class A Common Stock is entitled to receive cash dividends equal to 110% of any cash dividend paid on Class B Common Stock. | |||||||||||||
The Company calculates earnings per share using the two-class method in accordance with FASB ASC Topic 260. | |||||||||||||
The two-class method of computing basic earnings per share for each period reflects the cash dividends declared per share for each class of stock, plus allocated undistributed earnings per share computed using the participation percentage which reflects the dividend rights of each class of stock. Diluted earnings per share is calculated assuming the conversion of all shares of Class B Common Stock to shares of Class A Common Stock on a share-for-share basis. The tables below reconcile the numerators and denominators of basic and diluted earnings per share for current and prior periods. | |||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||
28-Dec-13 | 29-Dec-12 | ||||||||||||
Class A | Class B | Class A | Class B | ||||||||||
Numerator: Allocated net income | |||||||||||||
Net income allocated, basic | $ | 5,846,794 | $ | 3,686,335 | $ | 6,452,230 | $ | 5,115,418 | |||||
Conversion of Class B to Class A shares | 3,686,335 | — | 5,115,418 | — | |||||||||
Net income allocated, diluted | $ | 9,533,129 | $ | 3,686,335 | $ | 11,567,648 | $ | 5,115,418 | |||||
Denominator: Weighted average shares outstanding | |||||||||||||
Weighted average shares outstanding, basic | 13,439,523 | 9,320,253 | 12,954,485 | 11,305,291 | |||||||||
Conversion of Class B to Class A shares | 9,320,253 | — | 11,305,291 | — | |||||||||
Weighted average shares outstanding, diluted | 22,759,776 | 9,320,253 | 24,259,776 | 11,305,291 | |||||||||
Earnings per share | |||||||||||||
Basic | $ | 0.44 | $ | 0.40 | $ | 0.50 | $ | 0.45 | |||||
Diluted | $ | 0.42 | $ | 0.40 | $ | 0.48 | $ | 0.45 | |||||
Segment_Information
Segment Information | 3 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Segment Information [Abstract] | ' | |||||||
Segment Information | ' | |||||||
I. SEGMENT INFORMATION | ||||||||
The Company operates one primary business segment, retail grocery sales. The “Other” segment includes our remaining operations -- fluid dairy and shopping center rentals. The Company previously presented the fluid dairy and shopping center rentals as separate segments; however, these have now been combined as neither meets the criteria for separate disclosure in any period presented. Prior year data has been recast to reflect the current segment presentation. In addition, the Company has historically presented the revenue and expense of the shopping center rental segment “net” on the condensed consolidated statement of income. In 2013, the Company concluded that the income and expense amounts associated with shopping center rentals should be presented as “gross” rather than “net”. Accordingly the prior period condensed consolidated statements of income have been revised to eliminate the amounts presented as rental income, net while increasing net sales by $2.2 million and cost of goods sold by $1.9 million for the three months ended December 29, 2012. Management does not believe that these corrections are material to the financial statements. Information about the Company’s operations by lines of business (amounts in thousands) is as follows: | ||||||||
Three Months Ended | ||||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
Revenues from unaffiliated customers: | ||||||||
Grocery sales | $ | 910,087 | $ | 899,795 | ||||
Other | 35,038 | 35,183 | ||||||
Total revenues from unaffiliated customers | $ | 945,125 | $ | 934,978 | ||||
Income before income taxes: | ||||||||
Grocery sales | $ | 24,165 | $ | 30,841 | ||||
Other | 2,035 | 2,640 | ||||||
Total income from operations | $ | 26,200 | $ | 33,481 | ||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
Assets: | ||||||||
Grocery sales | $ | 1,510,506 | $ | 1,513,891 | ||||
Other | 145,727 | 157,909 | ||||||
Elimination of intercompany receivable | -2,510 | -2,472 | ||||||
Total assets | $ | 1,653,723 | $ | 1,669,328 | ||||
Sales by product category (amounts in thousands) are as follows: | ||||||||
Three Months Ended | ||||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
Grocery | $ | 358,899 | $ | 371,259 | ||||
Non-foods | 181,874 | 177,704 | ||||||
Perishables | 226,602 | 219,949 | ||||||
Gasoline | 142,712 | 130,883 | ||||||
Total grocery segment | $ | 910,087 | $ | 899,795 | ||||
The grocery category includes grocery, dairy, and frozen foods. | ||||||||
The non-foods include alcoholic beverages, tobacco, pharmacy, health and video. | ||||||||
The perishables category includes meat, produce, deli and bakery. | ||||||||
For the three-month periods ended December 28, 2013 and December 29, 2012, respectively, the fluid dairy operation had $14.8 million and $15.9 million in sales to the grocery sales segment. These sales have been eliminated in consolidation. | ||||||||
Fair_Values_Of_Financial_Instr
Fair Values Of Financial Instruments | 3 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Fair Values Of Financial Instruments [Abstract] | ' | ||||||||
Fair Values Of Financial Instruments | ' | ||||||||
J. FAIR VALUES OF FINANCIAL INSTRUMENTS | |||||||||
The carrying amounts for cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term maturity of these instruments. | |||||||||
The fair value of the Company’s debt is estimated using valuation techniques under the accounting guidance related to fair value measurements based on observable and unobservable inputs. Observable inputs reflect readily available data from independent sources, while unobservable inputs reflect the Company’s market assumptions. These inputs are classified into the following hierarchy: | |||||||||
Level 1 Inputs – | Quoted prices for identical assets or liabilities in active markets. | ||||||||
Level 2 Inputs – | Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. | ||||||||
Level 3 Inputs – | Pricing inputs are unobservable for the assets or liabilities and include situations where there is little, if any, market activity for the assets or liabilities. The inputs into the determination of fair value require significant management judgment or estimation. | ||||||||
The carrying amount and fair value of the Company’s debt at December 28, 2013 is as follows (in thousands): | |||||||||
Carrying | Fair Value | ||||||||
Amount | Fair Value | Measurements | |||||||
Senior Notes | $ | 700,000 | $ | 684,250 | Level 2 | ||||
Recovery Zone Facility Bonds | 99,740 | 99,740 | Level 2 | ||||||
Real estate and equipment notes payable | 110,877 | 111,023 | Level 2 | ||||||
Line of credit payable | 14,435 | 14,435 | Level 2 | ||||||
Total debt | $ | 925,052 | $ | 909,448 | |||||
The fair values for Level 2 measurements were determined primarily using market yields and taking into consideration the underlying terms of the debt. | |||||||||
Nonqualified_Investment_Plan
Nonqualified Investment Plan | 3 Months Ended |
Dec. 28, 2013 | |
Nonqualified Investment Plan [Abstract] | ' |
Nonqualified Investment Plan | ' |
K. NONQUALIFIED INVESTMENT PLAN | |
The purpose of the Executive Nonqualified Excess Plan is to provide retirement benefits similar to the Company’s Investment/Profit Sharing Plan to certain of the Company’s management employees who are otherwise subject to limited participation in the 401(k) feature of the Company’s Investment/Profit Sharing Plan. Participant retirement account balances are liabilities of the Company. Assets of the plan are assets of the Company and are held in trust for employees and distributed upon retirement, death, disability, in-service distributions, or other termination of employment. In accordance with the trust, the Company may not use these assets for general corporate purposes. During the quarters ended December 28, 2013 and December 29, 2012 the Company liquidated certain life insurance policy assets and invested the proceeds in marketable securities. These marketable securities will be liquidated and invested in life insurance policies in future periods. Life insurance policies and marketable securities held in the trust are included in the caption “Other assets” in the Condensed Consolidated Balance Sheets. | |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Dec. 28, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
L. SUBSEQUENT EVENTS | |
We have evaluated subsequent events and transactions for potential recognition or disclosure in the financial statements through the day the financial statements were issued. | |
Accrued_Expenses_And_Current_P1
Accrued Expenses And Current Portion Of Other Long-Term Liabilities (Tables) | 3 Months Ended | ||||||
Dec. 28, 2013 | |||||||
Accrued Expenses And Current Portion Of Other Long-Term Liabilities [Abstract] | ' | ||||||
Accrued Expenses and Current Portion of Other Long-Term Liabilities | ' | ||||||
December 28, | September 28, | ||||||
2013 | 2013 | ||||||
Property, payroll and other taxes payable | $ | 9,898,534 | $ | 16,771,941 | |||
Salaries, wages and bonuses payable | 21,032,958 | 25,129,025 | |||||
Self-insurance liabilities | 12,198,331 | 12,844,143 | |||||
Interest payable | 2,555,924 | 12,993,252 | |||||
Other | 3,139,543 | 4,264,622 | |||||
$ | 48,825,290 | $ | 72,002,983 | ||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 3 Months Ended | |
Dec. 28, 2013 | ||
Long-Term Debt [Abstract] | ' | |
Schedule Of Maturities Of Long-Term Debt | ' | |
Year | ||
2018 | 102.88% | |
2019 | 101.92% | |
2020 | 100.96% | |
2021 and thereafter | 100.00% | |
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 3 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Earnings Per Common Share [Abstract] | ' | ||||||||||||
Reconciliation Of Numerators And Denominators Of Basic And Diluted Earnings Per Share | ' | ||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||
28-Dec-13 | 29-Dec-12 | ||||||||||||
Class A | Class B | Class A | Class B | ||||||||||
Numerator: Allocated net income | |||||||||||||
Net income allocated, basic | $ | 5,846,794 | $ | 3,686,335 | $ | 6,452,230 | $ | 5,115,418 | |||||
Conversion of Class B to Class A shares | 3,686,335 | — | 5,115,418 | — | |||||||||
Net income allocated, diluted | $ | 9,533,129 | $ | 3,686,335 | $ | 11,567,648 | $ | 5,115,418 | |||||
Denominator: Weighted average shares outstanding | |||||||||||||
Weighted average shares outstanding, basic | 13,439,523 | 9,320,253 | 12,954,485 | 11,305,291 | |||||||||
Conversion of Class B to Class A shares | 9,320,253 | — | 11,305,291 | — | |||||||||
Weighted average shares outstanding, diluted | 22,759,776 | 9,320,253 | 24,259,776 | 11,305,291 | |||||||||
Earnings per share | |||||||||||||
Basic | $ | 0.44 | $ | 0.40 | $ | 0.50 | $ | 0.45 | |||||
Diluted | $ | 0.42 | $ | 0.40 | $ | 0.48 | $ | 0.45 | |||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Segment Information [Abstract] | ' | |||||||
Operations By Lines Of Business | ' | |||||||
Three Months Ended | ||||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
Revenues from unaffiliated customers: | ||||||||
Grocery sales | $ | 910,087 | $ | 899,795 | ||||
Other | 35,038 | 35,183 | ||||||
Total revenues from unaffiliated customers | $ | 945,125 | $ | 934,978 | ||||
Income before income taxes: | ||||||||
Grocery sales | $ | 24,165 | $ | 30,841 | ||||
Other | 2,035 | 2,640 | ||||||
Total income from operations | $ | 26,200 | $ | 33,481 | ||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
Assets: | ||||||||
Grocery sales | $ | 1,510,506 | $ | 1,513,891 | ||||
Other | 145,727 | 157,909 | ||||||
Elimination of intercompany receivable | -2,510 | -2,472 | ||||||
Total assets | $ | 1,653,723 | $ | 1,669,328 | ||||
Sales By Product Category | ' | |||||||
Three Months Ended | ||||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
Grocery | $ | 358,899 | $ | 371,259 | ||||
Non-foods | 181,874 | 177,704 | ||||||
Perishables | 226,602 | 219,949 | ||||||
Gasoline | 142,712 | 130,883 | ||||||
Total grocery segment | $ | 910,087 | $ | 899,795 | ||||
Fair_Values_Of_Financial_Instr1
Fair Values Of Financial Instruments (Tables) | 3 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Fair Values Of Financial Instruments [Abstract] | ' | ||||||||
Carrying Amount And Fair Value Of Debt | ' | ||||||||
Carrying | Fair Value | ||||||||
Amount | Fair Value | Measurements | |||||||
Senior Notes | $ | 700,000 | $ | 684,250 | Level 2 | ||||
Recovery Zone Facility Bonds | 99,740 | 99,740 | Level 2 | ||||||
Real estate and equipment notes payable | 110,877 | 111,023 | Level 2 | ||||||
Line of credit payable | 14,435 | 14,435 | Level 2 | ||||||
Total debt | $ | 925,052 | $ | 909,448 | |||||
Allowance_For_Doubtful_Account1
Allowance For Doubtful Accounts (Details) (USD $) | Dec. 28, 2013 | Sep. 28, 2013 |
Allowance For Doubtful Accounts [Abstract] | ' | ' |
Allowance for doubtful accounts receivables | $764,000 | $773,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | Dec. 28, 2013 | Sep. 28, 2013 |
Income Taxes [Abstract] | ' | ' |
Interest and penalties, accrued | $49,000 | ' |
Unrecognized tax benefits | 121,000 | ' |
Refundable current income taxes | $6,400,000 | $13,800,000 |
Accrued_Expenses_And_Current_P2
Accrued Expenses And Current Portion Of Other Long-Term Liabilities (Narrative) (Details) (USD $) | 3 Months Ended | |
Dec. 28, 2013 | Dec. 29, 2012 | |
Accrued Expenses And Current Portion Of Other Long-Term Liabilities [Abstract] | ' | ' |
Workers' compensation per occurrence covered under insurance cost | $750,000 | ' |
General liability | 500,000 | ' |
Medical care benefits per person covered under insurance cost | 325,000 | ' |
Self insurance reserves | 29,000,000 | ' |
Employee insurance expense | 6,200,000 | 8,500,000 |
Self insurance reserves, current | 12,200,000 | ' |
Self insurance reserves, noncurrent | $16,800,000 | ' |
Accrued_Expenses_And_Current_P3
Accrued Expenses And Current Portion Of Other Long-Term Liabilities (Accrued Expenses And Current Portion Of Other Long-Term Liabilities) (Details) (USD $) | Dec. 28, 2013 | Sep. 28, 2013 |
Accrued Expenses And Current Portion Of Other Long-Term Liabilities [Abstract] | ' | ' |
Property, payroll, and other taxes payable | $9,898,534 | $16,771,941 |
Salaries, wages and bonuses payable | 21,032,958 | 25,129,025 |
Self-insurance liabilities | 12,198,331 | 12,844,143 |
Interest payable | 2,555,924 | 12,993,252 |
Other | 3,139,543 | 4,264,622 |
Total | $48,825,290 | $72,002,983 |
LongTerm_Debt_Narrative_Detail
Long-Term Debt (Narrative) (Details) (USD $) | 3 Months Ended | |
Dec. 28, 2013 | Oct. 29, 2009 | |
sqft | ||
Debt Instrument [Line Items] | ' | ' |
Maturity period of Senior note | '2023 | ' |
Redemption period of senior notes | 'redeem all or a portion of the Notes at any time on or after June 15, 2018 | ' |
Amount of line of credit arrangement | $175,000,000 | ' |
Final maturity date of bonds | 1-Jan-36 | ' |
Redemption period of bonds | 1-Jan-14 | ' |
Description of interest rate on bonds | 'interest rate on the Bonds is equal to one month LIBOR (adjusted monthly) plus a credit spread | ' |
Principal amount | 700,000,000 | ' |
Interest rate of Senior note | 5.75% | ' |
Unused letters of credit issued | 10,300,000 | ' |
Total amount of bonds funded | ' | 99,700,000 |
Total area of new warehouse and distribution center | ' | 830,000 |
Annual amount of redemption of bonds | 4,530,000 | ' |
Repayment of line of credit | 52,000,000 | ' |
Redemption of senior notes, date | 15-Jun-18 | ' |
Maximum amount of unused letters of credit allowed to issue | 30,000,000 | ' |
Line of credit outstanding | 14,400,000 | ' |
Senior Notes Maturing 2017 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Maturity period of Senior note | '2017 | ' |
Principal amount | $575,000,000 | ' |
LongTerm_Debt_Schedule_Of_Rede
Long-Term Debt (Schedule Of Redemption Prices Of Senior Notes) (Details) | 3 Months Ended |
Dec. 28, 2013 | |
Long-Term Debt [Abstract] | ' |
2018 | 102.88% |
2019 | 101.92% |
2020 | 100.96% |
2021 and thereafter | 100.00% |
Dividends_Details
Dividends (Details) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | ||||||||
Oct. 24, 2013 | Dec. 31, 2012 | Oct. 24, 2013 | Dec. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Oct. 24, 2013 | Dec. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Oct. 07, 2012 | Dec. 07, 2012 | Dec. 07, 2012 | |
Class A Common Stock [Member] | Class A Common Stock [Member] | Class A Common Stock [Member] | Class A Common Stock [Member] | Class B Common Stock [Member] | Class B Common Stock [Member] | Class B Common Stock [Member] | Class B Common Stock [Member] | Special Dividend | Special Dividend | Special Dividend | |||
Class A Common Stock [Member] | Class B Common Stock [Member] | ||||||||||||
Dividends Payable [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash dividends per share of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.66 | $0.60 |
Cash dividends per share of common stock | ' | ' | $0.17 | $0.17 | $0.17 | $0.99 | $0.15 | $0.15 | $0.15 | $0.90 | ' | ' | ' |
Dividend payment date | 24-Oct-13 | 31-Dec-12 | ' | ' | ' | ' | ' | ' | ' | ' | 31-Dec-12 | ' | ' |
Dividend record date | 10-Oct-13 | 21-Dec-12 | ' | ' | ' | ' | ' | ' | ' | ' | 21-Dec-12 | ' | ' |
Earnings_Per_Common_Share_Narr
Earnings Per Common Share (Narrative) (Details) | 3 Months Ended |
Dec. 28, 2013 | |
Earnings Per Share [Line Items] | ' |
Voting rights for shareholders | 'Each share of Class A Common Stock has one vote per share and each share of Class B Common Stock has ten votes per share |
Percentage of cash dividend on Class B Common Stock entitled to receive for each share of Class A Common Stock | 110.00% |
Conversion feature for Class B Common Stock | 'each share is convertible into one share of Class A Common Stock at any time |
Class A Common Stock [Member] | ' |
Earnings Per Share [Line Items] | ' |
Number of votes for common stock | 1 |
Class B Common Stock [Member] | ' |
Earnings Per Share [Line Items] | ' |
Number of votes for common stock | 10 |
Earnings_Per_Common_Share_Reco
Earnings Per Common Share (Reconciliation Of Numerators And Denominators Of Basic And Diluted Earnings Per Share) (Details) (USD $) | 3 Months Ended | |
Dec. 28, 2013 | Dec. 29, 2012 | |
Class A Common Stock [Member] | ' | ' |
Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share [Line Items] | ' | ' |
Net income allocated, basic | $5,846,794 | $6,452,230 |
Conversion of Class B to Class A shares | 3,686,335 | 5,115,418 |
Net income allocated, diluted | 9,533,129 | 11,567,648 |
Weighted average shares outstanding, basic | 13,439,523 | 12,954,485 |
Conversion of Class B to Class A shares | 9,320,253 | 11,305,291 |
Weighted average shares outstanding, diluted | 22,759,776 | 24,259,776 |
Earnings per share, Basic | $0.44 | $0.50 |
Earnings per share, Diluted | $0.42 | $0.48 |
Class B Common Stock [Member] | ' | ' |
Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share [Line Items] | ' | ' |
Net income allocated, basic | 3,686,335 | 5,115,418 |
Net income allocated, diluted | $3,686,335 | $5,115,418 |
Weighted average shares outstanding, basic | 9,320,253 | 11,305,291 |
Weighted average shares outstanding, diluted | 9,320,253 | 11,305,291 |
Earnings per share, Basic | $0.40 | $0.45 |
Earnings per share, Diluted | $0.40 | $0.45 |
Segment_Information_Narrative_
Segment Information (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
segment | ||
Segment Reporting Information [Line Items] | ' | ' |
Number of segments | 1 | ' |
Increase in net sales from shopping center rentals | ' | $2.20 |
Increase in cost of goods sold from shopping center rentals | ' | 1.9 |
Fluid Dairy [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Sales | 14.8 | $15.90 |
Segment_Information_Operations
Segment Information (Operations By Lines Of Business) (Details) (USD $) | 3 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | |
Segment Reporting Information By Segment [Line Items] | ' | ' | ' |
Total revenues from unaffiliated customers | $945,125,000 | $934,978,000 | ' |
Total income from operations | 26,200,359 | 33,481,006 | ' |
Total assets | 1,653,722,606 | 1,669,328,000 | 1,669,327,737 |
Elimination Of Intercompany Receivable [Member] | ' | ' | ' |
Segment Reporting Information By Segment [Line Items] | ' | ' | ' |
Total assets | -2,510,000 | -2,472,000 | ' |
Grocery Sales [Member] | ' | ' | ' |
Segment Reporting Information By Segment [Line Items] | ' | ' | ' |
Total revenues from unaffiliated customers | 910,087,000 | 899,795,000 | ' |
Total income from operations | 24,165,000 | 30,841,000 | ' |
Total assets | 1,510,506,000 | 1,513,891,000 | ' |
Shopping Center Rentals [Member] | ' | ' | ' |
Segment Reporting Information By Segment [Line Items] | ' | ' | ' |
Total income from operations | 2,035,000 | 2,640,000 | ' |
Total assets | 145,727,000 | 157,909,000 | ' |
Fluid Dairy [Member] | ' | ' | ' |
Segment Reporting Information By Segment [Line Items] | ' | ' | ' |
Total revenues from unaffiliated customers | $35,038,000 | $35,183,000 | ' |
Segment_Information_Sales_By_P
Segment Information (Sales By Product Category) (Details) (USD $) | 3 Months Ended | |
Dec. 28, 2013 | Dec. 29, 2012 | |
Segment Reporting Information By Segment [Line Items] | ' | ' |
Net sales | $945,124,870 | $934,977,527 |
Grocery [Member] | ' | ' |
Segment Reporting Information By Segment [Line Items] | ' | ' |
Net sales | 358,899,000 | 371,259,000 |
Non-Foods [Member] | ' | ' |
Segment Reporting Information By Segment [Line Items] | ' | ' |
Net sales | 181,874,000 | 177,704,000 |
Perishables [Member] | ' | ' |
Segment Reporting Information By Segment [Line Items] | ' | ' |
Net sales | 226,602,000 | 219,949,000 |
Gasoline [Member] | ' | ' |
Segment Reporting Information By Segment [Line Items] | ' | ' |
Net sales | 142,712,000 | 130,883,000 |
Grocery Sales [Member] | ' | ' |
Segment Reporting Information By Segment [Line Items] | ' | ' |
Net sales | $910,087,000 | $899,795,000 |
Fair_Values_Of_Financial_Instr2
Fair Values Of Financial Instruments (Carrying Amount And Fair Value Of Debt) (Details) (USD $) | Dec. 28, 2013 |
In Thousands, unless otherwise specified | |
Carrying Amount [Member] | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Estimated fair value of debt | $925,052 |
Fair Value [Member] | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Estimated fair value of debt | 909,448 |
Level 2 [Member] | Senior Notes, Net Of Unamortized Original Issue Discount [Member] | Carrying Amount [Member] | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Estimated fair value of debt | 700,000 |
Level 2 [Member] | Senior Notes, Net Of Unamortized Original Issue Discount [Member] | Fair Value [Member] | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Estimated fair value of debt | 684,250 |
Level 2 [Member] | Recovery Zone Facility Bonds [Member] | Carrying Amount [Member] | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Estimated fair value of debt | 99,740 |
Level 2 [Member] | Recovery Zone Facility Bonds [Member] | Fair Value [Member] | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Estimated fair value of debt | 99,740 |
Level 2 [Member] | Real Estate And Equipment Notes Payable [Member] | Carrying Amount [Member] | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Estimated fair value of debt | 110,877 |
Level 2 [Member] | Real Estate And Equipment Notes Payable [Member] | Fair Value [Member] | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Estimated fair value of debt | 111,023 |
Level 2 [Member] | Line Of Credit Payable [Member] | Carrying Amount [Member] | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Estimated fair value of debt | 14,435 |
Level 2 [Member] | Line Of Credit Payable [Member] | Fair Value [Member] | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Estimated fair value of debt | $14,435 |