Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Mar. 25, 2017 | May 01, 2017 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 25, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | IMKTA | |
Entity Registrant Name | INGLES MARKETS INC | |
Entity Central Index Key | 50,493 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Accelerated Filer | |
Class A Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 14,071,794 | |
Class B Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 6,187,982 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 25, 2017 | Sep. 24, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 6,104,260 | $ 5,679,509 |
Receivables - net | 63,544,007 | 61,735,387 |
Inventories | 348,067,707 | 343,881,078 |
Other current assets | 12,733,545 | 7,191,465 |
Total Current Assets | 430,449,519 | 418,487,439 |
Property and Equipment - Net | 1,251,373,614 | 1,247,881,773 |
Other Assets | 21,369,878 | 20,109,087 |
Total Assets | 1,703,193,011 | 1,686,478,299 |
Current Liabilities: | ||
Current portion of long-term debt | 10,061,559 | 10,000,629 |
Accounts payable - trade | 165,344,222 | 155,288,402 |
Accrued expenses and current portion of other long-term liabilities | 64,766,470 | 76,315,606 |
Total Current Liabilities | 240,172,251 | 241,604,637 |
Deferred Income Taxes | 71,413,000 | 71,449,000 |
Long-Term Debt | 866,421,839 | 866,473,465 |
Other Long-Term Liabilities | 38,532,057 | 36,775,587 |
Total Liabilities | 1,216,539,147 | 1,216,302,689 |
Stockholders’ Equity | ||
Preferred stock, $0.05 par value; 10,000,000 shares authorized; no shares issued | ||
Paid-in capital in excess of par value | 12,311,249 | 12,311,249 |
Retained earnings | 473,329,626 | 456,851,372 |
Total Stockholders’ Equity | 486,653,864 | 470,175,610 |
Total Liabilities and Stockholders’ Equity | 1,703,193,011 | 1,686,478,299 |
Class A Common Stock [Member] | ||
Stockholders’ Equity | ||
Common stocks | 703,563 | 698,324 |
Class B Common Stock [Member] | ||
Stockholders’ Equity | ||
Common stocks | $ 309,426 | $ 314,665 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 25, 2017 | Sep. 24, 2016 |
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 | 14,071,251 | 13,966,476 |
Common stock, shares outstanding | 14,071,251 | 13,966,476 |
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 | 6,188,525 | 6,293,300 |
Common stock, shares outstanding | 6,188,525 | 6,293,300 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 25, 2017 | Mar. 26, 2016 | |
Net sales | $ 946,151,967 | $ 924,312,049 | $ 1,928,910,306 | $ 1,875,425,912 |
Cost of goods sold | 718,066,675 | 695,593,959 | 1,463,740,533 | 1,421,068,490 |
Gross profit | 228,085,292 | 228,718,090 | 465,169,773 | 454,357,422 |
Operating and administrative expenses | 203,023,241 | 196,147,853 | 409,319,456 | 390,220,140 |
(Loss) gain from sale or disposal of assets | (10,139) | 557,409 | 1,367,978 | 621,141 |
Income from operations | 25,051,912 | 33,127,646 | 57,218,295 | 64,758,423 |
Other income, net | 776,316 | 534,097 | 1,439,451 | 1,139,940 |
Interest expense | 11,719,781 | 11,225,332 | 23,032,412 | 23,202,529 |
Income before income taxes | 14,108,447 | 22,436,411 | 35,625,334 | 42,695,834 |
Income tax expense | 4,957,000 | 8,078,000 | 12,650,000 | 15,358,000 |
Net income | $ 9,151,447 | $ 14,358,411 | $ 22,975,334 | $ 27,337,834 |
Class A Common Stock [Member] | ||||
Per share amounts: | ||||
Basic earnings per common share | $ 0.47 | $ 0.73 | $ 1.17 | $ 1.39 |
Diluted earnings per common share | 0.45 | 0.71 | 1.13 | 1.35 |
Cash dividends per common share | 0.165 | 0.165 | 0.33 | 0.33 |
Class B Common Stock [Member] | ||||
Per share amounts: | ||||
Basic earnings per common share | 0.42 | 0.66 | 1.06 | 1.26 |
Diluted earnings per common share | 0.42 | 0.66 | 1.06 | 1.26 |
Cash dividends per common share | $ 0.150 | $ 0.150 | $ 0.30 | $ 0.30 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Changes In Stockholders' Equity - USD ($) | Class A Common Stock [Member]Common Stock [Member] | Class B Common Stock [Member]Common Stock [Member] | Paid-in Capital in Excess of Par Value | Retained Earnings | Total |
Balance at Sep. 26, 2015 | $ 696,233 | $ 316,756 | $ 12,311,249 | $ 415,654,162 | $ 428,978,400 |
Balance (in shares) at Sep. 26, 2015 | 13,924,651 | 6,335,125 | |||
Net income | 27,337,834 | 27,337,834 | |||
Cash dividends | (6,495,941) | (6,495,941) | |||
Common stock conversions | $ 909 | $ (909) | |||
Common stock conversions (in shares) | 18,175 | (18,175) | |||
Balance at Mar. 26, 2016 | $ 697,142 | $ 315,847 | 12,311,249 | 436,496,055 | 449,820,293 |
Balance (in shares) at Mar. 26, 2016 | 13,942,826 | 6,316,950 | |||
Balance at Sep. 24, 2016 | $ 698,324 | $ 314,665 | 12,311,249 | 456,851,372 | 470,175,610 |
Balance (in shares) at Sep. 24, 2016 | 13,966,476 | 6,293,300 | |||
Net income | 22,975,334 | 22,975,334 | |||
Cash dividends | (6,497,080) | (6,497,080) | |||
Common stock conversions | $ 5,239 | $ (5,239) | |||
Common stock conversions (in shares) | 104,775 | (104,775) | |||
Balance at Mar. 25, 2017 | $ 703,563 | $ 309,426 | $ 12,311,249 | $ 473,329,626 | $ 486,653,864 |
Balance (in shares) at Mar. 25, 2017 | 14,071,251 | 6,188,525 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements Of Cash Flows - USD ($) | 6 Months Ended | |
Mar. 25, 2017 | Mar. 26, 2016 | |
Cash Flows from Operating Activities: | ||
Net income | $ 22,975,334 | $ 27,337,834 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 54,913,272 | 52,391,891 |
Gain from sale or disposal of assets | (1,367,978) | (621,141) |
Receipt of advance payments on purchases contracts | 1,170,000 | 2,500,000 |
Recognition of advance payments on purchases contracts | (1,265,876) | (1,634,696) |
Deferred income taxes | (36,000) | 3,648,000 |
Changes in operating assets and liabilities: | ||
Receivables | (1,808,619) | (4,204,142) |
Inventory | (4,186,629) | (2,236,116) |
Other assets | (6,802,871) | 2,090,262 |
Accounts payable and accrued expenses | 1,864,809 | (21,644,196) |
Net Cash Provided by Operating Activities | 65,455,442 | 57,627,696 |
Cash Flows from Investing Activities: | ||
Proceeds from sales of property and equipment | 1,481,305 | 643,492 |
Capital expenditures | (59,380,630) | (71,224,192) |
Net Cash Used by Investing Activities | (57,899,325) | (70,580,700) |
Cash Flows from Financing Activities: | ||
Proceeds from short-term borrowings | 251,695,910 | 399,128,977 |
Payments on short-term borrowings | (244,497,799) | (369,559,814) |
Principal payments on long-term borrowings | (7,832,397) | (8,558,415) |
Dividends paid | (6,497,080) | (6,495,941) |
Net Cash (Used) Provided by Financing Activities | (7,131,366) | 14,514,807 |
Net Increase in Cash and Cash Equivalents | 424,751 | 1,561,803 |
Cash and cash equivalents at Beginning of period | 5,679,509 | 7,505,040 |
Cash and Cash Equivalents at End of period | $ 6,104,260 | $ 9,066,843 |
Basis Of Preparation
Basis Of Preparation | 6 Months Ended |
Mar. 25, 2017 | |
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 financial position of Ingles Markets, Incorporated and Subsidiaries (the “Company”) as of March 25, 2017, the results of operations for the three-month and six-month periods ended March 25, 2017 and March 26, 2016, and the changes in stockholders’ equity and cash flows for the six-month periods ended March 25, 2017 and March 26, 2016. 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 24, 2016 filed by the Company under the Securities Exchange Act of 1934 on December 16 , 2016. The results of operations for the three-month and six-month periods ended March 25, 2017 are not necessarily indicative of the results to be expected for the full fiscal year. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Mar. 25, 2017 | |
New Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements | B. NEW ACCOUNTING PRONOUNCEMENTS In February 2016, the FASB issued Accounting Standards Update ASU 2016-02 “Leases” (ASU 2016-02). ASU 2016-02 requires lessees to recognize lease assets and lease liabilities on the balance sheet for those leases previously classified as operating leases. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update ASU 2014-09 “Revenue from Contracts with Customers” (ASU 2014-09). ASU 2014-09 is a comprehensive new revenue recognition model that requires a company to recognize to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be revenue entitled in exchange for those goods and services. In August 2015, the FASB issued ASU 2015-14 which deferred the effective date of the ASU to fiscal years beginning after December 15, 2017 and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements. |
Allowance For Doubtful Accounts
Allowance For Doubtful Accounts | 6 Months Ended |
Mar. 25, 2017 | |
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 $358,000 at March 25, 2017 and September 24, 2016. |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 25, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | D. INCOME TAXES The Company’s effective tax rate differs from the federal statutory rate primarily as a result of state income taxes and tax credits. The Company has unrecognized tax benefits and could incur interest and penalties related to uncertain tax positions. These amounts are insignificant and are not expected to significantly increase or decrease within the next twelve months. |
Accrued Expenses And Current Po
Accrued Expenses And Current Portion Of Other Long-Term Liabilities | 6 Months Ended |
Mar. 25, 2017 | |
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: March 25, September 24, 2017 2016 Property, payroll and other taxes payable $ 11,012,798 $ 18,883,819 Salaries, wages and bonuses payable 24,672,366 28,159,164 Self-insurance liabilities 13,501,285 14,083,047 Interest payable 12,472,683 12,406,614 Other 3,107,338 2,782,962 $ 64,766,470 $ 76,315,606 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 fo r general liability and $450,000 per covered person for medical care benefits for a policy year. The Company’s self-insurance reserves totaled $35.9 million at March 25, 2017 and September 24, 2016. Of this amount, $13.5 million is accounted for as a current liability and $22.4 million as a long-term liability, which is inclusive of $ 5.0 million of expected self-insurance recoveries from excess cost insurance or other sources that are recorded as a receivable at March 25, 2017. At September 24, 2016, $ 14.1 million is accounted for as a current liability and $ 21.8 million as a long-term liability, which is inclusive of $ 4.8 million of expected self-insurance recoveries from excess cost insurance or other sources that are recorded as a receivable. Employee insurance expense, including workers’ compensation and medical care benefits, net of employee contributions, totaled $7.1 million and $10.0 million for the three-month periods ended March 25, 2017 and March 26, 2016, respectively. For the six-month periods ended March 25, 2017 and March 26, 2016, employee insurance expense, net of employee contributions, totaled $16 .4 million and $19.2 million, respectively. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Mar. 25, 2017 | |
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. The Company filed a registration statement with the Securities and Exchange Commission and completed the exchange of 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 102.875% 2019 101.917% 2020 100.958% 2021 and thereafter 100.000% T he Company has a $175.0 million line of credit (the “Line”) that matures in June 2018. The Line provides the Company with various interest rate options based on the prime rate, the Federal Funds Rate, or the London Interbank Offering Rate (“LIBOR”) . The Line allows the Company to issue up to $30.0 million in unused letters of credit, of which $9.0 million of unused letters of credit were issued at March 25, 2017. The Company is not required to maintain compensating balances in connection with the Line. At March 25, 2017, the Company had $7.2 million of borrowings outstanding under the Line. In December 2010, the Company completed the funding of $99.7 million of Recovery Zone Facility Bonds (the “Bonds”) for construction of new warehouse and distribution space in Buncombe County, North Carolina (the “Project”). 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 June 30, 2021 , subject to certain events. Mandatory redemption of the Bonds by the Company in the annual amount of $4.5 million began on January 1, 2014 . The Company may redeem the Bonds without penalty or premium at any time prior to June 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 . The Notes, the Bonds and the Line 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 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 its borrowings at March 25, 2017. 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 , Bond s and Notes indenture in the event of default under any one instrument. |
Dividends
Dividends | 6 Months Ended |
Mar. 25, 2017 | |
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 14, 2016 to stockholders of record on October 6, 2016 . 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 January 12, 2017 to stockholders of record on January 6, 2017 . 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 16 , 2016. |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Mar. 25, 2017 | |
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 Accounting Standards Codification (“FASB ASC”) Topic 260. The two-class method of computing basic earnings per share for each period reflects the cash dividends paid per share for each class of stock, plus the amount of 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 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 Six Months Ended March 25, 2017 March 25, 2017 Class A Class B Class A Class B Numerator: Allocated net income Net income allocated, basic $ 6,513,698 $ 2,637,749 $ 16,328,364 $ 6,646,970 Conversion of Class B to Class A shares 2,637,749 — 6,646,970 — Net income allocated, diluted $ 9,151,447 $ 2,637,749 $ 22,975,334 $ 6,646,970 Denominator: Weighted average shares outstanding Weighted average shares outstanding, basic 14,038,094 6,221,682 14,002,300 6,257,476 Conversion of Class B to Class A shares 6,221,682 — 6,257,476 — Weighted average shares outstanding, diluted 20,259,776 6,221,682 20,259,776 6,257,476 Earnings per share Basic $ 0.47 $ 0.42 $ 1.17 $ 1.06 Diluted $ 0.45 $ 0.42 $ 1.13 $ 1.06 The per share amounts for the second quarter of fiscal 2016 and the six months ended March 26, 2016 are based on the following amounts: Three Months Ended Six Months Ended March 26, 2016 March 26, 2016 Class A Class B Class A Class B Numerator: Allocated net income Net income allocated, basic $ 10,169,757 $ 4,188,654 $ 19,352,122 $ 7,985,712 Conversion of Class B to Class A shares 4,188,654 — 7,985,712 — Net income allocated, diluted $ 14,358,411 $ 4,188,654 $ 27,337,834 $ 7,985,712 Denominator: Weighted average shares outstanding Weighted average shares outstanding, basic 13,942,826 6,316,950 13,934,874 6,324,902 Conversion of Class B to Class A shares 6,316,950 — 6,324,902 — Weighted average shares outstanding, diluted 20,259,776 6,316,950 20,259,776 6,324,902 Earnings per share Basic $ 0.73 $ 0.66 $ 1.39 $ 1.26 Diluted $ 0.71 $ 0.66 $ 1.35 $ 1.26 |
Segment Information
Segment Information | 6 Months Ended |
Mar. 25, 2017 | |
Segment Information [Abstract] | |
Segment Information | I. SEGMENT INFORMATION The Company operates one primary business segment, retail grocery sales. The “Other” activities include fluid dairy and shopping center rentals. Information about the Company’s operations by lines of business (amounts in thousands) is as follows: Three Months Ended Six Months Ended March 25, March 26, March 25, March 26, 2017 2016 2017 2016 Revenues from unaffiliated customers: Grocery $ 342,188 $ 351,123 $ 703,089 $ 709,585 Non-foods 201,258 198,158 413,568 401,026 Perishables 248,673 248,343 504,522 495,227 Gasoline 118,083 92,187 236,606 200,704 Total Retail $ 910,202 $ 889,811 $ 1,857,785 $ 1,806,542 Other 35,950 34,501 71,125 68,884 Total revenues from unaffiliated customers $ 946,152 $ 924,312 $ 1,928,910 $ 1,875,426 Income from operations: Retail $ 20,606 $ 28,869 $ 49,597 $ 56,638 Other 4,446 4,259 7,621 8,120 Total income from operations $ 25,052 $ 33,128 $ 57,218 $ 64,758 March 25, September 24, 2017 2016 Assets: Retail $ 1,570,727 $ 1,555,319 Other 134,135 133,574 Elimination of intercompany receivable (1,669) (2,415) Total assets $ 1,703,193 $ 1,686,478 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 March 25, 2017 and March 26, 2016, respectively, the fluid dairy had $11.5 million and $11.0 million in sales to the retail grocery segment. The fluid dairy had $23.3 million and $22.3 million in sales to the retail grocery segment for the six-month periods ended March 25, 2017 and March 26, 2016, respectively. These sales have been eliminated in consolidation. |
Fair Values Of Financial Instru
Fair Values Of Financial Instruments | 6 Months Ended |
Mar. 25, 2017 | |
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 March 25, 2017 is as follows (in thousands): Carrying Fair Value Amount Fair Value Measurements Senior Notes $ 700,000 $ 700,875 Level 2 Facility Bonds 81,620 81,620 Level 2 Secured notes payable and other 87,665 87,665 Level 2 Line of credit payable 7,198 7,198 Level 2 Total debt $ 876,483 $ 877,358 The fair values for Level 2 measurements were determined primarily using market yields and taking into consideration the underlying terms of the debt. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Mar. 25, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | K . 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 18
Accrued Expenses And Current Portion Of Other Long-Term Liabilities (Tables) | 6 Months Ended |
Mar. 25, 2017 | |
Accrued Expenses And Current Portion Of Other Long-Term Liabilities [Abstract] | |
Accrued Expenses and Current Portion Of Other Long-Term Liabilities | March 25, September 24, 2017 2016 Property, payroll and other taxes payable $ 11,012,798 $ 18,883,819 Salaries, wages and bonuses payable 24,672,366 28,159,164 Self-insurance liabilities 13,501,285 14,083,047 Interest payable 12,472,683 12,406,614 Other 3,107,338 2,782,962 $ 64,766,470 $ 76,315,606 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Mar. 25, 2017 | |
Long-Term Debt [Abstract] | |
Schedule Of Redemption Prices Of Senior Notes | Year 2018 102.875% 2019 101.917% 2020 100.958% 2021 and thereafter 100.000% |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Mar. 25, 2017 | |
Earnings Per Common Share [Abstract] | |
Reconciliation of Numerators and Denominators of Basic and Diluted Earnings Per Share | Three Months Ended Six Months Ended March 25, 2017 March 25, 2017 Class A Class B Class A Class B Numerator: Allocated net income Net income allocated, basic $ 6,513,698 $ 2,637,749 $ 16,328,364 $ 6,646,970 Conversion of Class B to Class A shares 2,637,749 — 6,646,970 — Net income allocated, diluted $ 9,151,447 $ 2,637,749 $ 22,975,334 $ 6,646,970 Denominator: Weighted average shares outstanding Weighted average shares outstanding, basic 14,038,094 6,221,682 14,002,300 6,257,476 Conversion of Class B to Class A shares 6,221,682 — 6,257,476 — Weighted average shares outstanding, diluted 20,259,776 6,221,682 20,259,776 6,257,476 Earnings per share Basic $ 0.47 $ 0.42 $ 1.17 $ 1.06 Diluted $ 0.45 $ 0.42 $ 1.13 $ 1.06 The per share amounts for the second quarter of fiscal 2016 and the six months ended March 26, 2016 are based on the following amounts: Three Months Ended Six Months Ended March 26, 2016 March 26, 2016 Class A Class B Class A Class B Numerator: Allocated net income Net income allocated, basic $ 10,169,757 $ 4,188,654 $ 19,352,122 $ 7,985,712 Conversion of Class B to Class A shares 4,188,654 — 7,985,712 — Net income allocated, diluted $ 14,358,411 $ 4,188,654 $ 27,337,834 $ 7,985,712 Denominator: Weighted average shares outstanding Weighted average shares outstanding, basic 13,942,826 6,316,950 13,934,874 6,324,902 Conversion of Class B to Class A shares 6,316,950 — 6,324,902 — Weighted average shares outstanding, diluted 20,259,776 6,316,950 20,259,776 6,324,902 Earnings per share Basic $ 0.73 $ 0.66 $ 1.39 $ 1.26 Diluted $ 0.71 $ 0.66 $ 1.35 $ 1.26 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Mar. 25, 2017 | |
Segment Information [Abstract] | |
Operations By Lines Of Business | Three Months Ended Six Months Ended March 25, March 26, March 25, March 26, 2017 2016 2017 2016 Revenues from unaffiliated customers: Grocery $ 342,188 $ 351,123 $ 703,089 $ 709,585 Non-foods 201,258 198,158 413,568 401,026 Perishables 248,673 248,343 504,522 495,227 Gasoline 118,083 92,187 236,606 200,704 Total Retail $ 910,202 $ 889,811 $ 1,857,785 $ 1,806,542 Other 35,950 34,501 71,125 68,884 Total revenues from unaffiliated customers $ 946,152 $ 924,312 $ 1,928,910 $ 1,875,426 Income from operations: Retail $ 20,606 $ 28,869 $ 49,597 $ 56,638 Other 4,446 4,259 7,621 8,120 Total income from operations $ 25,052 $ 33,128 $ 57,218 $ 64,758 March 25, September 24, 2017 2016 Assets: Retail $ 1,570,727 $ 1,555,319 Other 134,135 133,574 Elimination of intercompany receivable (1,669) (2,415) Total assets $ 1,703,193 $ 1,686,478 |
Fair Values Of Financial Inst22
Fair Values Of Financial Instruments (Tables) | 6 Months Ended |
Mar. 25, 2017 | |
Fair Values Of Financial Instruments [Abstract] | |
Carrying Amount And Fair Value Of Debt | Carrying Fair Value Amount Fair Value Measurements Senior Notes $ 700,000 $ 700,875 Level 2 Facility Bonds 81,620 81,620 Level 2 Secured notes payable and other 87,665 87,665 Level 2 Line of credit payable 7,198 7,198 Level 2 Total debt $ 876,483 $ 877,358 |
Allowance For Doubtful Accoun23
Allowance For Doubtful Accounts (Narrative) (Details) - USD ($) $ in Thousands | Mar. 25, 2017 | Sep. 24, 2016 |
Allowance For Doubtful Accounts [Abstract] | ||
Allowance for doubtful accounts receivable | $ 358 | $ 358 |
Accrued Expenses And Current 24
Accrued Expenses And Current Portion Of Other Long-Term Liabilities (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 25, 2017 | Mar. 26, 2016 | Sep. 24, 2016 | |
Accrued Expenses And Current Portion Of Other Long-Term Liabilities [Abstract] | |||||
Workers' compensation per occurrence covered under insurance cost | $ 750 | $ 750 | |||
General liability | 500 | 500 | |||
Medical care benefits per person covered under insurance cost | 450 | 450 | |||
Self insurance reserves | 35,900 | 35,900 | $ 35,900 | ||
Self insurance reserves, current | 13,500 | 13,500 | 14,100 | ||
Self insurance reserves, noncurrent | 22,400 | 22,400 | 21,800 | ||
Receivable for expected self-insurance recoveries from excess cost insurance | 5,000 | 5,000 | $ 4,800 | ||
Employee insurance expense | $ 7,100 | $ 10,000 | $ 16,400 | $ 19,200 |
Accrued Expenses And Current 25
Accrued Expenses And Current Portion Of Other Long-Term Liabilities (Accrued Expenses And Current Portion Of Other Long-Term Liabilities) (Details) - USD ($) | Mar. 25, 2017 | Sep. 24, 2016 |
Accrued Expenses And Current Portion Of Other Long-Term Liabilities [Abstract] | ||
Property, payroll, and other taxes payable | $ 11,012,798 | $ 18,883,819 |
Salaries, wages and bonuses payable | 24,672,366 | 28,159,164 |
Self-insurance liabilities | 13,501,285 | 14,083,047 |
Interest payable | 12,472,683 | 12,406,614 |
Other | 3,107,338 | 2,782,962 |
Total | $ 64,766,470 | $ 76,315,606 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) | 6 Months Ended | ||
Mar. 25, 2017 | Jun. 30, 2013 | Dec. 31, 2010 | |
Debt Instrument [Line Items] | |||
Borrowings outstanding | $ 7,200,000 | ||
Maximum amount of unused letters of credit allowed to issue | 30,000,000 | ||
Unused letters of credit issued | $ 9,000,000 | ||
Redemption of senior notes, date | Jun. 15, 2018 | ||
Senior Notes, Interest Rate of 5.75%, Maturing 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument principal amount | $ 700,000,000 | ||
Maturity period of Senior note | 2,023 | ||
Interest rate on senior notes | 5.75% | ||
Redemption period of senior notes | redeem all or a portion of the Notes at any time on or after June 15, 2018 | ||
Recovery Zone Facility Bonds [Member] | |||
Debt Instrument [Line Items] | |||
Debt maturity date | Jan. 1, 2036 | ||
Description of interest rate on bonds | interest rate on the Bonds is equal to one month LIBOR (adjusted monthly) plus a credit spread | ||
Total amount of bonds funded | $ 99,700,000 | ||
Annual amount of redemption of bonds | $ 4,500,000 | ||
Beginning of redemption period of bonds | Jan. 1, 2014 | ||
Credit Line [Member] | |||
Debt Instrument [Line Items] | |||
Debt maturity date | Jun. 30, 2018 | ||
Line of credit facility | $ 175,000,000 |
Long-Term Debt (Schedule Of Red
Long-Term Debt (Schedule Of Redemption Prices Of Senior Notes) (Details) | 6 Months Ended |
Mar. 25, 2017 | |
Long-Term Debt [Abstract] | |
2,018 | 102.875% |
2,019 | 101.917% |
2,020 | 100.958% |
2021 and thereafter | 100.00% |
Dividends (Narrative) (Details)
Dividends (Narrative) (Details) - $ / shares | Jan. 12, 2017 | Oct. 14, 2016 | Mar. 25, 2017 | Mar. 26, 2016 | Mar. 25, 2017 | Mar. 26, 2016 |
Class A Common Stock [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Cash dividends per share of common stock | $ 0.165 | $ 0.165 | $ 0.33 | $ 0.33 | ||
Class B Common Stock [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Cash dividends per share of common stock | $ 0.150 | $ 0.150 | $ 0.30 | $ 0.30 | ||
Dividend 1 [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Dividend payment date | Oct. 14, 2016 | |||||
Dividend record date | Oct. 6, 2016 | |||||
Dividend 1 [Member] | Class A Common Stock [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Cash dividends per share of common stock | $ 0.165 | |||||
Dividend 1 [Member] | Class B Common Stock [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Cash dividends per share of common stock | $ 0.15 | |||||
Dividend 2 [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Dividend payment date | Jan. 12, 2017 | |||||
Dividend record date | Jan. 6, 2017 | |||||
Dividend 2 [Member] | Class A Common Stock [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Cash dividends per share of common stock | $ 0.165 | |||||
Dividend 2 [Member] | Class B Common Stock [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Cash dividends per share of common stock | $ 0.15 |
Earnings Per Common Share (Narr
Earnings Per Common Share (Narrative) (Details) | 6 Months Ended |
Mar. 25, 2017item | |
Earnings Per Share [Line Items] | |
Conversion feature for Class B Common Stock | each share is convertible into one share of Class A Common Stock at any time |
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% |
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 | 6 Months Ended | ||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 25, 2017 | Mar. 26, 2016 | |
Class A Common Stock [Member] | ||||
Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share [Line Items] | ||||
Net income allocated, basic | $ 6,513,698 | $ 10,169,757 | $ 16,328,364 | $ 19,352,122 |
Conversion of Class B to Class A shares | 2,637,749 | 4,188,654 | 6,646,970 | 7,985,712 |
Net income allocated, diluted | $ 9,151,447 | $ 14,358,411 | $ 22,975,334 | $ 27,337,834 |
Weighted average shares outstanding, basic | 14,038,094 | 13,942,826 | 14,002,300 | 13,934,874 |
Conversion of Class B to Class A shares | 6,221,682 | 6,316,950 | 6,257,476 | 6,324,902 |
Weighted average shares outstanding, diluted | 20,259,776 | 20,259,776 | 20,259,776 | 20,259,776 |
Earnings per share, Basic | $ 0.47 | $ 0.73 | $ 1.17 | $ 1.39 |
Earnings per share, Diluted | $ 0.45 | $ 0.71 | $ 1.13 | $ 1.35 |
Class B Common Stock [Member] | ||||
Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share [Line Items] | ||||
Net income allocated, basic | $ 2,637,749 | $ 4,188,654 | $ 6,646,970 | $ 7,985,712 |
Net income allocated, diluted | $ 2,637,749 | $ 4,188,654 | $ 6,646,970 | $ 7,985,712 |
Weighted average shares outstanding, basic | 6,221,682 | 6,316,950 | 6,257,476 | 6,324,902 |
Weighted average shares outstanding, diluted | 6,221,682 | 6,316,950 | 6,257,476 | 6,324,902 |
Earnings per share, Basic | $ 0.42 | $ 0.66 | $ 1.06 | $ 1.26 |
Earnings per share, Diluted | $ 0.42 | $ 0.66 | $ 1.06 | $ 1.26 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 25, 2017USD ($) | Mar. 26, 2016USD ($) | Mar. 25, 2017USD ($)segment | Mar. 26, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of operating segments | segment | 1 | |||
Fluid dairy | ||||
Segment Reporting Information [Line Items] | ||||
Sales eliminated in consolidation | $ | $ 11.5 | $ 11 | $ 23.3 | $ 22.3 |
Segment Information (Operations
Segment Information (Operations By Lines Of Business) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Mar. 25, 2017 | Mar. 26, 2016 | Mar. 25, 2017 | Mar. 26, 2016 | Sep. 24, 2016 | |
Segment Reporting Information By Segment [Line Items] | |||||
Total revenues from unaffiliated customers | $ 946,151,967 | $ 924,312,049 | $ 1,928,910,306 | $ 1,875,425,912 | |
Total income from operations | 25,051,912 | 33,127,646 | 57,218,295 | 64,758,423 | |
Total assets | 1,703,193,011 | 1,703,193,011 | $ 1,686,478,299 | ||
Elimination of intercompany receivable | |||||
Segment Reporting Information By Segment [Line Items] | |||||
Total assets | (1,669,000) | (1,669,000) | (2,415,000) | ||
Grocery | |||||
Segment Reporting Information By Segment [Line Items] | |||||
Total revenues from unaffiliated customers | 342,188,000 | 351,123,000 | 703,089,000 | 709,585,000 | |
Non-foods | |||||
Segment Reporting Information By Segment [Line Items] | |||||
Total revenues from unaffiliated customers | 201,258,000 | 198,158,000 | 413,568,000 | 401,026,000 | |
Perishables | |||||
Segment Reporting Information By Segment [Line Items] | |||||
Total revenues from unaffiliated customers | 248,673,000 | 248,343,000 | 504,522,000 | 495,227,000 | |
Gasoline | |||||
Segment Reporting Information By Segment [Line Items] | |||||
Total revenues from unaffiliated customers | 118,083,000 | 92,187,000 | 236,606,000 | 200,704,000 | |
Retail | |||||
Segment Reporting Information By Segment [Line Items] | |||||
Total revenues from unaffiliated customers | 910,202,000 | 889,811,000 | 1,857,785,000 | 1,806,542,000 | |
Total income from operations | 20,606,000 | 28,869,000 | 49,597,000 | 56,638,000 | |
Total assets | 1,570,727,000 | 1,570,727,000 | 1,555,319,000 | ||
Other Segment [Member] | |||||
Segment Reporting Information By Segment [Line Items] | |||||
Total revenues from unaffiliated customers | 35,950,000 | 34,501,000 | 71,125,000 | 68,884,000 | |
Total income from operations | 4,446,000 | $ 4,259,000 | 7,621,000 | $ 8,120,000 | |
Total assets | $ 134,135,000 | $ 134,135,000 | $ 133,574,000 |
Fair Values Of Financial Inst33
Fair Values Of Financial Instruments (Carrying Amount And Fair Value Of Debt) (Details) $ in Thousands | Mar. 25, 2017USD ($) |
Carrying Amount | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Estimated fair value of debt | $ 876,483 |
Fair Value | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Estimated fair value of debt | 877,358 |
Level 2 | Senior Notes [Member] | Carrying Amount | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Estimated fair value of debt | 700,000 |
Level 2 | Senior Notes [Member] | Fair Value | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Estimated fair value of debt | 700,875 |
Level 2 | Recovery Zone Facility Bonds [Member] | Carrying Amount | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Estimated fair value of debt | 81,620 |
Level 2 | Recovery Zone Facility Bonds [Member] | Fair Value | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Estimated fair value of debt | 81,620 |
Level 2 | Secured Notes Payable And Other [Member] | Carrying Amount | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Estimated fair value of debt | 87,665 |
Level 2 | Secured Notes Payable And Other [Member] | Fair Value | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Estimated fair value of debt | 87,665 |
Level 2 | Line of credit payable [Member] | Carrying Amount | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Estimated fair value of debt | 7,198 |
Level 2 | Line of credit payable [Member] | Fair Value | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Estimated fair value of debt | $ 7,198 |