Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Sep. 28, 2019 | Dec. 05, 2019 | Mar. 30, 2019 | |
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 28, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Title of 12(b) Security | Class A Common Stock, $0.05 par value per share | ||
Trading Symbol | IMKTA | ||
Security Exchange Name | NASDAQ | ||
Entity Registrant Name | INGLES MARKETS INC | ||
Entity Central Index Key | 0000050493 | ||
Current Fiscal Year End Date | --09-28 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 398,000,000 | ||
Class A Common Stock [Member] | |||
Entity Common Stock, Shares Outstanding | 14,180,485 | ||
Class B Common Stock [Member] | |||
Entity Common Stock, Shares Outstanding | 6,079,291 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 28, 2019 | Sep. 29, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 42,125,105 | $ 10,537,303 |
Receivables - net | 71,951,303 | 70,056,909 |
Inventories | 374,129,060 | 372,195,421 |
Other current assets | 8,897,903 | 43,953,483 |
Total Current Assets | 497,103,371 | 496,743,116 |
Property and Equipment – Net | 1,344,267,315 | 1,303,044,370 |
Other Assets | 25,957,682 | 25,123,334 |
Total Assets | 1,867,328,368 | 1,824,910,820 |
Current Liabilities: | ||
Current portion of long-term debt | 12,600,131 | 12,848,013 |
Accounts payable - trade | 151,329,975 | 165,165,312 |
Accrued expenses and current portion of other long-term liabilities | 83,649,283 | 82,124,766 |
Total Current Liabilities | 247,579,389 | 260,138,091 |
Deferred Income Taxes | 75,499,000 | 74,461,000 |
Long-Term Debt | 839,637,691 | 852,739,760 |
Other Long-Term Liabilities | 41,889,682 | 42,158,161 |
Total Liabilities | 1,204,605,762 | 1,229,497,012 |
Commitments and Contingencies | ||
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 |
Accumulated other comprehensive income | (1,265,650) | |
Retained earnings | 650,664,018 | 582,089,570 |
Total Stockholders’ Equity | 662,722,606 | 595,413,808 |
Total Liabilities and Stockholders’ Equity | 1,867,328,368 | 1,824,910,820 |
Class A Common Stock [Member] | ||
Stockholders’ Equity | ||
Common stocks | 709,024 | 707,269 |
Class B Common Stock [Member] | ||
Stockholders’ Equity | ||
Common stocks | $ 303,965 | $ 305,720 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 28, 2019 | Sep. 29, 2018 |
Allowance for doubtful accounts receivable | $ 156,145 | $ 433,355 |
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 | 14,180,485 | 14,145,385 |
Common stock, shares outstanding | 14,180,485 | 14,145,385 |
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 | 6,079,291 | 6,114,391 |
Common stock, shares outstanding | 6,079,291 | 6,114,391 |
Consolidated Statements Of Inco
Consolidated Statements Of Income And Other Comprehensive Income - USD ($) | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Net sales | $ 4,202,033,610 | $ 4,092,804,877 | $ 4,002,699,727 |
Cost of goods sold | 3,180,033,398 | 3,112,635,516 | 3,039,106,724 |
Gross profit | 1,022,000,212 | 980,169,361 | 963,593,003 |
Operating and administrative expenses | 873,859,464 | 856,074,106 | 837,144,859 |
Gain from sale or disposal of assets | 4,052,387 | 728,386 | 1,464,600 |
Income from operations | 152,193,135 | 124,823,641 | 127,912,744 |
Other income, net | 1,814,971 | 3,064,690 | 3,806,869 |
Interest expense | 47,410,104 | 47,569,703 | 47,458,033 |
Income before income taxes | 106,598,002 | 80,318,628 | 84,261,580 |
Income tax expense (benefit) | 25,018,000 | (17,046,000) | 30,388,000 |
Net income | 81,580,002 | $ 97,364,628 | $ 53,873,580 |
Other comprehensive expense: | |||
Change in fair value of interest rate swap | (1,674,636) | ||
Income tax benefit | 408,986 | ||
Other comprehensive expense, net of tax | (1,265,650) | ||
Comprehensive income | $ 80,314,352 | ||
Class A Common Stock [Member] | |||
Per share amounts: | |||
Basic earnings per common share | $ 4.14 | $ 4.94 | $ 2.74 |
Diluted earnings per common share | 4.03 | 4.81 | 2.66 |
Cash dividends per common share | 0.66 | 0.66 | 0.66 |
Class B Common Stock [Member] | |||
Per share amounts: | |||
Basic earnings per common share | 3.76 | 4.49 | 2.49 |
Diluted earnings per common share | 3.76 | 4.49 | 2.49 |
Cash dividends per common share | $ 0.60 | $ 0.60 | $ 0.60 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Stockholders' Equity - USD ($) | Class A Common Stock [Member]Common Stock [Member] | Class A Common Stock [Member]Retained Earnings [Member] | Class A Common Stock [Member] | Class B Common Stock [Member]Common Stock [Member] | Class B Common Stock [Member]Retained Earnings [Member] | Class B Common Stock [Member] | Paid-in Capital in Excess of Par Value [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Total |
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 | 53,873,580 | 53,873,580 | ||||||||
Cash dividends | $ (9,254,502) | $ (9,254,502) | $ (3,742,685) | $ (3,742,685) | ||||||
Common stock conversions | $ 5,878 | $ (5,878) | ||||||||
Common stock conversions (in shares) | 117,568 | (117,568) | ||||||||
Balance at Sep. 30, 2017 | $ 704,202 | $ 308,787 | 12,311,249 | 497,727,765 | 511,052,003 | |||||
Balance (in shares) at Sep. 30, 2017 | 14,084,044 | 6,175,732 | ||||||||
Net income | 97,364,628 | 97,364,628 | ||||||||
Cash dividends | (9,316,501) | (9,316,501) | (3,686,322) | (3,686,322) | ||||||
Common stock conversions | $ 3,067 | $ (3,067) | ||||||||
Common stock conversions (in shares) | 61,341 | (61,341) | ||||||||
Balance at Sep. 29, 2018 | $ 707,269 | $ 305,720 | 12,311,249 | 582,089,570 | 595,413,808 | |||||
Balance (in shares) at Sep. 29, 2018 | 14,145,385 | 6,114,391 | ||||||||
Net income | 81,580,002 | 81,580,002 | ||||||||
Other comprehensive (expense) income, net of income tax | $ (1,265,650) | (1,265,650) | ||||||||
Cash dividends | $ (9,346,549) | $ (9,346,549) | $ (3,659,005) | $ (3,659,005) | ||||||
Common stock conversions | $ 1,755 | $ (1,755) | ||||||||
Common stock conversions (in shares) | (35,100) | 35,100 | ||||||||
Balance at Sep. 28, 2019 | $ 709,024 | $ 303,965 | $ 12,311,249 | $ (1,265,650) | $ 650,664,019 | $ 662,722,606 | ||||
Balance (in shares) at Sep. 28, 2019 | 14,180,485 | 6,079,291 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Cash Flows From Operating Activities: | |||
Net income | $ 81,580,002 | $ 97,364,628 | $ 53,873,580 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 112,520,100 | 113,082,675 | 110,929,378 |
Gain from sale or disposal of assets | (4,052,387) | (728,386) | (1,464,600) |
Receipt of advance payments on purchases contracts | 2,284,000 | 2,108,133 | 3,736,862 |
Recognition of advance payments on purchases contracts | (2,542,537) | (2,178,062) | (2,176,620) |
Deferred income taxes | 1,447,000 | 4,543,000 | (1,531,000) |
Changes in operating assets and liabilities: | |||
Receivables | (1,894,409) | (3,727,745) | (4,593,777) |
Inventory | (1,933,639) | (22,862,408) | (5,451,936) |
Other assets | 33,689,037 | (40,549,644) | (1,566,670) |
Accounts payable and accrued expenses | (9,593,939) | 14,187,867 | 4,585,074 |
Net Cash Provided By Operating Activities | 211,503,228 | 161,240,058 | 156,340,291 |
Cash Flows From Investing Activities: | |||
Proceeds from sales of property and equipment | 8,958,466 | 2,340,027 | 2,335,726 |
Capital expenditures | (161,751,023) | (150,486,508) | (127,695,650) |
Net Cash Used By Investing Activities | (152,792,557) | (148,146,481) | (125,359,924) |
Cash Flows From Financing Activities: | |||
Proceeds from short-term borrowings | 303,810,043 | 515,395,546 | 393,175,778 |
Payments on short-term borrowings | (303,810,043) | (515,395,546) | (393,175,778) |
Net proceeds from new long-term borrowings | 59,737,147 | ||
Principal payments on long-term borrowings | (14,117,316) | (13,465,551) | (59,487,736) |
Dividends | (13,005,553) | (13,002,823) | (12,997,187) |
Net Cash Used By Financing Activities | (27,122,869) | (26,468,374) | (12,747,776) |
Increase (decrease) in Cash and Cash Equivalents | 31,587,802 | (13,374,797) | 18,232,591 |
Cash and cash equivalents at beginning of year | 10,537,303 | 23,912,100 | 5,679,509 |
Cash and Cash Equivalents at end of year | $ 42,125,105 | $ 10,537,303 | $ 23,912,100 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Sep. 28, 2019 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Nature of Operations – Ingles Markets, Incorporated (“Ingles” or the “Company”), is a leading supermarket chain in the southeast United States, operates 198 supermarkets in North Carolina ( 73 ), Georgia (66) , South Carolina (36) , Tennessee (21) , Virginia (1) and Alabama (1) . Principles of Consolidation – The consolidated financial statements include the accounts of Ingles Markets, Incorporated and its wholly-owned subsidiaries, Sky King, Inc., Ingles Markets Investments, Inc., Milkco, Inc., Land O Sky, LLC, Shopping Center Financing, LLC, and Shopping Center Financing II, LLC. All significant inter-company balances and transactions are eliminated in consolidation. Fiscal Year – The Company’s fiscal year ends on the last Saturday in September. Fiscal years 2019 and 2018 each consisted of 52 weeks. Fiscal year 2017 consisted of 53 weeks. Segment Information – The Company operates one primary business segment, retail grocery sales (representing the aggregation of individual retail stores). The “Other” segment includes our remaining operations -- fluid dairy and shopping center rentals. New Accounting Pronouncements – In February 2016 the Financial Accounting Standards Board (FASB) issued ASU 2016-02, "Leases" (ASU 2016-02), which requires the Company as lessee to recognize most leases on the balance sheet thereby resulting in the recognition of right of use assets and lease obligations for those leases currently classified as operating leases. The accounting for leases where the Company is the lessor remains largely unchanged. ASU 2016-02 became effective for the Company on September 29, 2019 and the Company elected the optional transition method which permits entities to change the date of initial application of the standard to the beginning of the year of adoption and to recognize the effects of applying ASU 2016-02 as a cumulative-effect adjustment to the opening balance of retained earnings. Certain qualitative and quantitative disclosures are also required. While the Company is still finalizing our adoption procedures, the Company estimates the primary impact to the consolidated financial position upon adoption will be the recognition, on a discounted basis, of minimum commitments under noncancelable operating leases on the consolidated balance sheets resulting in the recording of right of use assets and lease obligations for approximately $45 to $55 million. The Company does not expect a material impact to the Company’s consolidated statements of income, comprehensive income, stockholders’ equity, or cash flows. 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 revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be 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 adopted the standard in the first quarter of fiscal 2019, and determined the impact of adopting the new guidance was immaterial to its annual and interim financial statements. The Company’s assessment included a detailed review of contracts for each of its disaggregated revenue streams and a comparison of its historical accounting policies and practices to the new standard. Cash Equivalents – All highly liquid investments with a maturity of three months or less when purchased are considered cash. Outstanding checks in excess of bank balances are included in the line item “Accounts payable – trade” on the Consolidated Balance Sheets. There were no such balances at September 28, 2019 and September 29, 2018, respectively. Financial Instruments – The Company at times has short-term investments and certificates of deposit with maturities of three months or less when purchased that are included in cash. At September 28, 2019, the Company had no such investments. The Company’s policy is to invest its excess cash either in money market accounts, reverse repurchase agreements or in certificates of deposit. Money market accounts and certificates of deposit are not secured; reverse repurchase agreements are secured by government obligations. At September 28, 2019 demand deposits of approximately $37.6 million in three banks exceed the $250,000 FDIC insurance limit per bank. Interest Rate Swaps – The Company utilizes interest rate swap contracts to reduce its exposure to fluctuations in variable interest rates for future interest payments on some of its debt instruments. For determining the fair value of the interest rate swap contract, the Company uses significant observable market data or assumptions about counterparty risk. The fair value estimates reflect an income approach based on the terms of the interest rate swap contracts and inputs corroborated by observable market data including interest rate curves. The Company has designated its swaps as cash flow hedges, for which the Company records the effective portions of changes in its fair value, net of tax, in other comprehensive income (loss). To the extent interest rate swaps are determined to be ineffective, the Company recognizes the change in the estimated fair value of the swaps in earnings. Allowance for Doubtful Accounts – Accounts receivable are primarily from vendor allowances, customer charges and pharmacy insurance company reimbursements. Accounts receivable are stated net of an allowance for uncollectible accounts, which is determined through analysis of the aging of accounts receivable at the date of the consolidated financial statements and assessments of the collectability based upon historical collection activity adjusted for current conditions. Inventories – Substantially all of the Company’s inventory consists of finished goods. Warehouse inventories are valued at the lower of average cost or market. Store inventories are valued using the retail method under which inventories at cost (and the resulting gross margins) are determined by applying a calculated cost-to-retail ratio to the retail value of inventories. As an integral part of valuing inventory at cost, management makes certain judgments and estimates for standard gross margins, allowances for vendor consideration, markdowns and shrinkage. Warehousing and distribution costs are not included in the valuation of inventories. The Company reviews its judgments and estimates regularly and makes adjustments where facts and circumstances dictate. Property, Equipment and Depreciation – Property and equipment are stated at cost and depreciated over the estimated useful lives by the straight-line method. Buildings are generally depreciated over 30 years. Store, office and warehouse equipment is generally depreciated over three to 10 years. Transportation equipment is generally depreciated over three to five years. Leasehold improvements are depreciated over the shorter of the subject lease term or the useful life of the asset, generally from three to 30 years. Depreciation and amortization expense totaled $ 112.5 million , $113.1 million and $1 10.9 million for fiscal years 2019, 2018 and 2017, respectively. Asset Impairments – The Company accounts for the impairment of long-lived assets in accordance with FASB Accounting Standards Codification (“FASB ASC”) Topic 360. Asset groups are primarily comprised of individual store and shopping center properties. For assets to be held and used, the Company tests for impairment using undiscounted cash flows and calculates the amount of impairment using discounted cash flows. For assets held for sale, impairment is recognized based on the excess of remaining book value over expected recovery value. The recovery value is the fair value as determined by independent quotes or expected sales prices developed by internal associates, less costs to sell. Estimates of future cash flows and expected sales prices are judgments based upon the Company’s experience and knowledge of local operations and cash flows that are projected for several years into the future. These estimates can fluctuate significantly due to changes in real estate market conditions, the economic environment, capital spending decisions and inflation. The Company monitors the carrying value of long-lived assets for potential impairment each quarter based on whether any indicators of impairment have occurred. 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 termination of employment. In accordance with the trust, the Company may not use these assets for general corporate purposes. Life insurance policies and marketable securities held in the trust are included in the caption “Other assets” in the Consolidated Balance Sheets. Self-Insurance – The Company is self-insured for workers’ compensation, general liability and group medical and dental benefits. Risks and uncertainties are associated with self-insurance; however, the Company has limited its exposure by maintaining excess liability coverage of $1,000,000 per occurrence for workers’ compensation, $500,000 for general liability, and $450,000 per covered person for medical care benefits for a policy year. Effective October 1, 2019 the excess liability limit was increased to $1,000,000 for general liability. Self-insurance liabilities are established based on claims filed and estimates of claims incurred but not reported. The estimates are based on data provided by the respective claims administrators, which is then applied to appropriate actuarial methods. These estimates can fluctuate if historical trends are not predictive of the future. The Company’s self-insurance reserves totaled $31.0 million and $34.7 million for employee group insurance, workers’ compensation insurance and general liability insurance at September 28, 201 9 and September 29, 2018, respectively. These amounts are inclusive of expected recoveries from excess cost insurance or other sources that are recorded as receivables of $3.6 at September 28, 2019 and $4.6 million at September 29, 2018. The Company is required in certain cases to obtain letters of credit to support its self-insured status. At fiscal year-end 2019, the Company’s self-insured liabilities were supported by a $2.6 million certificate of deposit and by $9.0 million of undrawn letters of credit which expire between September and October 2019 . The Company carries casualty insurance only on those properties where it is required to do so. The Company has elected to self-insure its other properties. Income Taxes – The Company accounts for income taxes under FASB ASC Topic 740. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates. The Company accounts for uncertainty in income taxes by prescribing a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken on a tax return. The Company files income tax returns with federal and various state jurisdictions. With few exceptions, the Company is no longer subject to federal or state income tax examinations by tax authorities for the years before tax year 2015. Examinations may challenge certain of the Company’s tax positions. Actual results could materially differ from these estimates and could significantly affect the effective tax rate and cash flows in the future years. Valuation allowances are established when necessary to reduce deferred tax assets to the amount more likely than not expected to be realized. Gross unrecognized tax benefits as well as interest and penalties related to uncertain tax positions could affect the Company’s effective tax rate. These amounts are insignificant for fiscal years 2019, 2018, and 2017. Pre-Opening Costs – Costs associated with the opening of new stores are expensed when incurred. Per-Share Amounts – The Company calculates earnings per share using the two-class method in accordance with FASB ASC Topic 260. Advertising – The Company expenses advertising as incurred. Advertising and promotion expenses, net of vendor allowance reimbursements, totaled $10.0 million, $12.6 million and $12.5 million for fiscal years 2019, 2018 and 2017, respectively. Use of Estimates – The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although these estimates are based on management’s knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. Such estimates include the allowance for doubtful accounts, various inventory reserves, realizability of deferred tax assets, and self-insurance reserves. Cost of Goods Sold – In addition to the direct product cost, cost of goods sold for the grocery segment includes inbound freight charges and costs of the Company’s distribution network. Milk processing is a manufacturing process. Therefore, cost of goods sold include direct product and production costs, inbound freight, purchasing and receiving costs, inspection costs, warehousing costs, internal transfer costs, and other costs of distribution. Depreciation expense included in costs of goods sold totaled $14.5 million, $ 14.4 million and $1 5.4 million for fiscal years 2019, 2018 and 2017, respectively. Operating and Administrative Expenses – Operating and administrative expenses include costs incurred for store and administrative labor, occupancy, depreciation (to the extent not included in Cost of Goods Sold), insurance and general administration. Revenue Recognition – The Company recognizes revenues from grocery segment sales at the point of sale to its customers. Sales taxes collected from customers are not included in reported revenues. Discounts provided to customers by the Company at the point of sale, including discounts provided in connection with loyalty cards, are recognized as a reduction in sales as the products are sold. Product returns are not significant. The Company recognizes fluid dairy revenues at the time the risk of loss shifts to the customer pursuant to our terms of sale. Therefore, approximately 54% of fluid dairy revenues are recognized when the product is picked up by the customer at our facility. The remaining fluid dairy revenues are recognized when the product is received at the customer’s facility upon delivery via transportation arranged by the Company. Rental income, including contingent rentals, is recognized on the accrual basis. Upfront consideration paid by either the Company as lessor or by the lessee is recognized as an adjustment to net rental income using the straight line method over the term of the lease. Vendor Allowances – The Company receives funds for a variety of merchandising activities from the many vendors whose products the Company buys for resale in its stores. These incentives and allowances are primarily comprised of volume or purchase based incentives, advertising allowances, slotting fees, and promotional discounts. The purpose of these incentives and allowances is generally to help defray the costs incurred by the Company for stocking, advertising, promoting and selling the vendors’ products. These allowances generally relate to short term arrangements with vendors, often relating to a period of a month or less, and are negotiated on a purchase-by-purchase or transaction-by-transaction basis. Whenever possible, vendor discounts and allowances that relate to buying and merchandising activities are recorded as a component of item cost in inventory and recognized in merchandise costs when the item is sold. Due to system constraints and the nature of certain allowances, it is sometimes not practicable to apply allowances to the item cost of inventory. In those instances, the allowances are applied as a reduction of merchandise costs using a rational and systematic methodology, which results in the recognition of these incentives when the inventory related to the vendor consideration received is sold. Vendor allowances applied as a reduction of merchandise costs totaled $111.7 million, $116.5 million, and $116.6 million for the fiscal years ended September 28, 2019, September 29, 2018 and September 30, 2017, respectively. Vendor advertising allowances that represent a reimbursement of specific identifiable incremental costs of advertising the vendor’s specific products are recorded as a reduction to the related expense in the period that the related expense is incurred. Vendor advertising allowances recorded as a reduction of advertising expense totaled $13.8 million, $14.1 million, and $13.8 million for the fiscal years ended September 28, 2019, September 29, 2018 and September 30, 2017, respectively. If vendor advertising allowances were substantially reduced or eliminated, the Company would likely consider other methods of advertising as well as the volume and frequency of its product advertising, which could increase or decrease its expenditures. Similarly, the Company is not able to assess the impact of vendor advertising allowances on the creation of additional revenue; as such allowances do not directly generate revenue for its stores . |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 28, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | 2. Income Taxes Deferred Income Tax Liabilities and Assets – Deferred income taxes are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax laws and rates. Significant components of the Company’s deferred tax liabilities and assets are as follows: 2019 2018 Deferred tax liabilities: Property and equipment tax/book differences $ 88,151,000 $ 87,577,000 Property tax method 1,228,000 1,156,000 Total deferred tax liabilities 89,379,000 88,733,000 Deferred tax assets: Insurance reserves 4,280,000 4,790,000 Advance payments on purchases contracts 698,000 761,000 Vacation accrual 1,723,000 1,652,000 Inventory 1,086,000 1,055,000 Deferred compensation 4,002,000 3,662,000 Other 2,091,000 2,352,000 Total deferred tax assets 13,880,000 14,272,000 Net deferred tax liabilities $ 75,499,000 $ 74,461,000 Refundable current income taxes totaling $1.0 million and $36.7 million at September 28, 2019 and September 29, 2018, respectively are included in the line item “Other current assets” on the Consolidated Balance Sheets. Income Tax Expense - Income tax expense differs from the amounts computed by applying the statutory federal rates to income before income taxes. The reasons for the differences are as follows: 2019 2018 2017 Federal tax at statutory rate $ 22,386,000 $ 19,678,000 $ 29,492,000 State income tax, net of federal tax benefits 3,726,000 3,528,000 2,774,000 Federal tax credits (1,184,000) (1,052,000) (1,024,000) Tax rate change on deferred tax balance as of Federal law enactment date — (26,680,000) — Tax method change — (10,606,000) — Tax rate change effect of FY18 current deferred activity — (2,124,000) — Other 90,000 210,000 (854,000) Total $ 25,018,000 $ (17,046,000) $ 30,388,000 Current and deferred income tax expense (benefit) is as follows: 2019 2018 2017 Current: Federal $ 18,774,000 $ (21,596,000) $ 26,994,000 State 4,797,000 7,000 4,925,000 Total current 23,571,000 (21,589,000) 31,919,000 Deferred: Federal 1,510,000 1,020,000 (1,104,000) State (63,000) 3,523,000 (427,000) Total deferred 1,447,000 4,543,000 (1,531,000) Total expense (benefit) $ 25,018,000 $ (17,046,000) $ 30,388,000 In December 2017, the Tax Cuts and Jobs Act (the “Tax Act”) became law. Among other things, the Tax Act reduced the federal corporate tax rate from 35% to 21% and allowed for full depreciation expensing of qualified property when placed in service. As a result of the decrease in the effective tax rate, the Company recorded a decrease in its net deferred tax liabilities of $26.7 million, with a corresponding reduction to deferred income tax expense. During fiscal year 2018, the Company adopted a tax calculation method change that resulted in the accelerated deduction of certain property-related expenditures. As a result of this change and the aforementioned change in the federal corporate tax rate, the Company recorded an additional decrease in its net deferred tax liabilities of $10.6 million, with a corresponding reduction to deferred income tax expense. |
Property And Equipment
Property And Equipment | 12 Months Ended |
Sep. 28, 2019 | |
Property And Equipment [Abstract] | |
Property And Equipment | 3. Property and Equipment Property and equipment, net, consists of the following: 2019 2018 Land $ 373,434,259 $ 351,073,344 Construction in progress 26,206,372 12,393,293 Buildings 1,212,984,091 1,173,237,017 Store, office and warehouse equipment 979,229,721 946,026,834 Transportation equipment 78,851,265 75,919,047 Leasehold improvements 56,455,431 54,387,952 Total 2,727,161,139 2,613,037,487 Less accumulated depreciation and amortization 1,382,893,824 1,309,993,117 Property and equipment - net $ 1,344,267,315 $ 1,303,044,370 |
Property Held For Lease And Ren
Property Held For Lease And Rental Income | 12 Months Ended |
Sep. 28, 2019 | |
Property Held For Lease And Rental Income [Abstract] | |
Property Held For Lease And Rental Income | 4. Property Held for Lease and Rental Income At September 28, 2019, the Company owned and operated 79 shopping centers in conjunction with its supermarket operations. The Company leases to others a portion of its shopping center properties. The leases are non-cancelable operating lease agreements for periods ranging up to 20 years. Rental income is included in the line item “Net sales” on the Consolidated Statements of Income. Depreciation on owned properties leased to others and other shopping center expenses are included in the line item “Cost of goods sold” on the Consolidated Statements of Income. 2019 2018 2017 Rents earned on owned and subleased properties: Base rentals including lease termination payments $ 14,821,734 $ 10,826,997 $ 8,847,035 Contingent rentals 278,660 249,965 334,204 Total 15,100,394 11,076,962 9,181,239 Depreciation on owned properties leased to others (5,183,712) (5,132,805) (5,255,719) Other shopping center expenses (3,640,110) (2,967,860) (2,654,976) Total $ 6,276,572 $ 2,976,297 $ 1,270,544 Owned properties leased or held for lease to others under operating leases by major classes are summarized as follows: September 28, September 29, 2019 2018 Land $ 57,568,972 $ 54,348,413 Buildings 179,723,671 170,700,496 Total 237,292,643 225,048,909 Less accumulated depreciation (97,321,740) (108,754,494) Total $ 139,970,903 $ 116,294,415 The above amounts are included on the Consolidated Balance Sheets in the caption “Property and equipment, net.” The following is a schedule of minimum future rental income on non-cancelable operating leases as of September 28, 2019: Fiscal Year 2020 $ 11,265,775 2021 8,855,781 2022 6,967,583 2023 5,862,260 2024 5,145,632 Thereafter 13,723,315 Total minimum future rental income $ 51,820,346 |
Leases And Rental Expense
Leases And Rental Expense | 12 Months Ended |
Sep. 28, 2019 | |
Leases And Rental Expense [Abstract] | |
Leases And Rental Expense | 5. Leases and Rental Expense The Company conducts part of its retail operations from leased facilities. The initial terms of the leases are generally 20 years. The majority of the leases include one or more renewal options and provide that the Company pay property taxes, utilities, repairs and certain other costs incidental to occupation of the premises. Several leases contain clauses calling for percentage rentals based upon gross sales of the supermarket occupying the leased space. Step rent provisions, escalation clauses, capital improvements and other lease concessions are taken into account in computing minimum lease payments, which are recognized on a straight-line basis over the minimum lease term. Operating Leases - Rent expense for all operating leases of $12.4 million, $12.8 million and $13.6 million for fiscal years 2019, 2018 and 2017, respectively, is included in operating and administrative expenses. Sub-lease rental income of $0.3 million for each of fiscal years 2019, 2018 and 2017, is included as a reduction of rental expense. The components of aggregate minimum rental commitments under non-cancelable operating leases as of September 28, 2019 are as follows: Fiscal Year 2020 $ 9,756,136 2021 7,532,373 2022 6,692,661 2023 4,907,148 2024 2,583,629 Thereafter 27,187,519 Total minimum future rental commitments $ 58,659,466 |
Supplementary Balance Sheet Inf
Supplementary Balance Sheet Information | 12 Months Ended |
Sep. 28, 2019 | |
Supplementary Balance Sheet Information [Abstract] | |
Supplementary Balance Sheet Information | 6. Supplementary Balance Sheet Information Accrued Expenses and Current Portion of Other Long-Term Liabilities - Accrued expenses and current portion of other long-term liabilities are summarized as follows: 2019 2018 Property, payroll, and other taxes payable $ 20,273,626 $ 22,327,253 Salaries, wages, and bonuses payable 31,861,220 29,583,266 Self-insurance liabilities: Employee group insurance 5,704,565 5,257,120 Workers’ compensation insurance 4,287,445 5,079,514 General liability insurance 3,154,282 3,239,695 Interest 13,342,260 13,397,615 Other 5,025,885 3,240,303 Total accrued expenses and current portion of other long-term liabilities $ 83,649,283 $ 82,124,766 Employee insurance expense, including workers’ compensation and medical care benefits, net of employee contributions, totaled $37.3 million, $37.7 million and $33.1 million for fiscal years 2019, 2018 and 2017, respectively. Other Long-Term Liabilities - Other long-term liabilities are summarized as follows: 2019 2018 Advance payments on purchases contracts $ 2,856,569 $ 3,115,106 Deferred lease expense 1,949,992 1,941,708 Nonqualified investment plan liability 16,446,037 15,033,318 Self-insurance liabilities: Workers’ compensation insurance 13,814,615 16,333,768 General liability insurance 4,050,070 4,776,234 Other 3,906,319 2,124,800 Other long-term liabilities 43,023,602 43,324,934 Less current portion 1,133,920 1,166,773 Total other long-term liabilities $ 41,889,682 $ 42,158,161 The Company’s fuel operations contain underground tanks for the storage of gasoline and diesel fuel. The Company reviewed FASB Topic ASC 410 and determined we have a legal obligation to remove tanks at a point in the future and accordingly determined we have met the requirements of an asset retirement obligation. The Company followed the FASB ASC 410 model for determining the asset retirement cost and asset retirement obligation. The amounts recorded are immaterial for each fuel center as well as in the aggregate at September 28, 2019 and September 29, 2018. Advance Payments on Purchases Contracts - The Company has entered into agreements with suppliers whereby payment is received in advance and earned based on purchases of product from these suppliers in the future. The unearned portion, included in other long-term liabilities, will be recognized in the results of operations in accordance with the terms of the contract. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Sep. 28, 2019 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | 7. Long-Term Debt Long-term debt and short-term loans are summarized as follows: 2019 2018 Bonds payable: Senior notes, interest rate of 5.75% , maturing 2023 $ 700,000,000 $ 700,000,000 Recovery Zone Facility Bonds, maturing 2036 72,560,000 77,090,000 Outstanding line of credit, weighted average interest rate of 5.75% for 2019 — — Notes payable due to banks, weighted average interest rate of 4.43% for 2019 and 3.68% for 2018 84,948,582 94,535,898 Less unamortized prepaid loan costs (5,270,760) (6,038,125) Total long-term debt 852,237,822 865,587,773 Less current portion 12,600,131 12,848,013 Long-term debt, net of current portion $ 839,637,691 $ 852,739,760 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 5.75% per annum and were issued at par. The Company filed a registration statement with the Securities and Exchange Commission and exchanged 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 102.875% 2019 101.917% 2020 100.958% 2021 and thereafter 100.000% The Company has a $175.0 million line of credit (the “Line”) that matures in September 2022 . 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. The Line allows the Company to issue up to $20.0 million in unused letters of credit, of which $9.0 million of unused letters of credit were issued at September 28, 2019. The Company is not required to maintain compensating balances in connection with the Line. At September 28, 2019, the Company had no borrowing 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 and equipping of an approximately 830,000 square foot new warehouse and distribution center to be located in Buncombe County, North Carolina (the “Project”). The final maturity date of the Bonds is January 1, 2036 . Under a Continuing Covenant and Collateral Agency Agreement (the “Covenant Agreement”) between certain financial institutions and the Company, the financial institutions would hold the Bonds until September 2026, 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. During fiscal year 2018, the Covenant Agreement was amended to change certain terms and to extend the maturity to September 2026. The Company may redeem the Bonds without penalty or premium at any time prior to September 26, 2026. 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. 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 the Notes, the Bonds and Line at September 28, 2019. 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. In September 2017, the Company refinanced approximately $60 million secured borrowing obligations that were scheduled to mature in fiscal years 2018-2020 with a LIBOR-based floating rate loan maturing in October 2027 . In December 2017, the Company entered into an interest rate swap contract to convert the variable interest rate on this loan to a fixed interest rate. The notional amount of the interest rate swap at inception was $58.5 million and declines each month by $0.5 million, consistent with the required principal payments of the loan. The interest rate swap has a fixed interest rate leg of 3.92% and a variable interest rate leg based on 1-month LIBOR. The Company recognizes differences between the variable rate interest payments and the fixed interest rate settlements with the swap counterparties as an adjustment to interest expense each period over the life of the swap. The Company has designated the swap as a cash flow hedge and records the changes in the estimated fair value of the swap to other comprehensive income each period. For the year ended September 28, 2019 the Company recorded $1.3 million of other comprehensive expense, respectively, net of income taxes, in its Consolidated Statements of Comprehensive income. Unrealized losses of $1.7 million are recorded as a liability at fair value in the line “Other Long Term Liabilities” on the Consolidated Balance Sheet as of September 28, 2019 Failure of the swap counterparty to make payments would result in the loss of any potential benefit to the Company under the swap agreement. In this case, the Company would still be obligated to pay the variable interest payments underlying the debt agreements. Additionally, failure of the swap counterparty would not eliminate the Company’s obligation to continue to make payments under the existing swap agreement if it continues to be in a net pay position. At September 28, 2019, property and equipment with an undepreciated cost of approximately $198.2 million was pledged as collateral for long-term debt. Long-term debt and Line agreements contain various restrictive covenants requiring, among other things, minimum levels of net worth and maintenance of certain financial ratios. In addition, certain loan agreements containing provisions outlining minimum tangible net worth requirements restrict the ability of the Company to pay cash dividends in excess of the current annual per share dividends paid on the Company’s Class A and Class B Common Stock. Further, the Company is prevented from paying cash dividends at any time that it is in default under the indenture governing the Notes. In addition, the terms of the indenture may restrict the ability of the Company to pay additional cash dividends based on certain financial parameters. Components of interest costs are as follows: 2019 2018 2017 Total interest costs $ 48,675,993 $ 48,707,921 $ 48,675,895 Interest capitalized (1,265,889) (1,138,218) (1,217,862) Interest expense $ 47,410,104 $ 47,569,703 $ 47,458,033 Maturities of long-term debt at September 28, 2019 are as follows: Fiscal Year 2020 $ 14,286,665 2021 14,453,256 2022 14,625,277 2023 714,804,840 2024 14,991,327 Thereafter 84,347,217 Less unamortized prepaid loan costs (5,270,760) Total $ 852,237,822 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Sep. 28, 2019 | |
Stockholder's Equity [Abstract] | |
Stockholders' Equity | 8. Stockholders’ Equity The Company has two classes of Common Stock: Class A and Class B. Class A Common Stock is traded on The NASDAQ Global Select Market under the symbol IMKTA. There is no public market for the Company’s Class B Common Stock. However, each share of Class B Common Stock is convertible at any time, at the option of the holder, into one share of Class A Common Stock. Upon any transfers of Class B Common Stock (other than to immediate family members and participants in the Investment/Profit Sharing Plan), such stock is automatically converted into Class A Common Stock. The holders of the Class A Common Stock and Class B Common Stock are entitled to dividends and other distributions when declared out of assets legally available therefore, subject to the dividend rights of any preferred stock that may be issued in the future. Each share of Class A Common Stock is entitled to receive a cash dividend and liquidation payment in an amount equal to 110% of any cash dividend or liquidation payment on Class B Common Stock. Any stock dividend must be paid in shares of Class A Common Stock with respect to Class A Common Stock and in shares of Class B Common Stock with respect to Class B Common Stock. The voting powers, preferences and relative rights of Class A Common Stock and Class B Common Stock are identical in all respects, except that the holders of Class A Common Stock have one vote per share and the holders of Class B Common Stock have ten votes per share. In addition, holders of Class A Common Stock, as a separate class, are entitled to elect 25% of all directors constituting the Board of Directors (rounded to the nearest whole number). As long as the Class B Common Stock represents at least 12.5% of the total outstanding Common Stock of both classes, holders of Class B Common Stock, as a separate class, are entitled to elect the remaining directors. The Company’s Articles of Incorporation and Bylaws provide that the Board of Directors can set the number of directors between five and eleven . |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Sep. 28, 2019 | |
Earnings Per Common Share [Abstract] | |
Earnings Per Common Share | 9. Earnings Per Common Share 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 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 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. Year Ended September 28, 2019 Class A Class B Numerator: Allocated net income Net income allocated, basic $ 58,635,758 $ 22,944,244 Conversion of Class B to Class A shares 22,944,244 — Net income allocated, diluted $ 81,580,002 $ 22,944,244 Denominator: Weighted average shares outstanding Weighted average shares outstanding, basic 14,163,776 6,096,000 Conversion of Class B to Class A shares 6,096,000 — Weighted average shares outstanding, diluted 20,259,776 6,096,000 Earnings per share Basic $ 4.14 $ 3.76 Diluted $ 4.03 $ 3.76 Year Ended Year Ended September 29, 2018 September 30, 2017 Class A Class B Class A Class B Numerator: Allocated net income Net income allocated, basic $ 69,790,716 $ 27,573,912 $ 38,393,384 $ 15,480,196 Conversion of Class B to Class A shares 27,573,912 — 15,480,196 — Net income allocated, diluted $ 97,364,628 $ 27,573,912 $ 53,873,580 $ 15,480,196 Denominator: Weighted average shares outstanding Weighted average shares outstanding, basic 14,123,182 6,136,594 14,039,125 6,220,651 Conversion of Class B to Class A shares 6,136,594 — 6,220,651 — Weighted average shares outstanding, diluted 20,259,776 6,136,594 20,259,776 6,220,651 Earnings per share Basic $ 4.94 $ 4.49 $ 2.74 $ 2.49 Diluted $ 4.81 $ 4.49 $ 2.66 $ 2.49 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Sep. 28, 2019 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | 10. Employee Benefit Plans Investment/Profit Sharing Plan - The purpose of the qualified investment/profit sharing plan is to provide retirement benefits to eligible employees. Assets of the plan, including the Company’s Class B Common Stock, are held in trust for employees and distributed upon retirement, death, disability or termination of employment. Company contributions are discretionary and are determined quarterly by the Board of Directors. The plan includes a 401(k) feature. Company contributions to the plan, included in operating and administrative expenses, were approximately $2.9 million, $2.8 million and $2.4 million for fiscal years 2019, 2018 and 2017, respectively. Nonqualified Investment Plan - The purpose of the Executive Nonqualified Excess Plan is to provide 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. Company contributions to the plan, included in operating and administrative expenses, were approximately $224,000 , $215,000 and $159,000 for fiscal years 2019, 2018 and 2017, respectively. Cash Bonuses - The Company pays monthly bonuses to various managerial personnel based on performance of the operating units managed by these personnel. The Company pays discretionary annual bonuses to certain employees who do not receive monthly performance bonuses. The Company pays discretionary bonuses to certain executive officers based on Company performance. Operating and administrative expenses include bonuses of approximately $11.9 million, $1 1.9 million and $10.6 million for fiscal years 2019, 2018 and 2017, respectively. Medical Care Plan - Medical and dental benefits are provided to qualified employees under a self-insured plan. Expenses under the plan include claims paid, administrative expenses and an estimated liability for claims incurred but not yet paid. |
Segment Information
Segment Information | 12 Months Ended |
Sep. 28, 2019 | |
Segment Information [Abstract] | |
Segment Information | 11. Segment Information The Company operates one primary business segment, retail grocery sales (representing the aggregation of individual retail stores). “Other” includes the Company’s remaining operations -- fluid dairy and shopping center rentals. Information about the Company’s operations by lines of business (amounts in thousands) is as follows: 2019 2018 2017 Revenues from unaffiliated customers: Grocery $ 1,443,394 $ 1,413,088 $ 1,424,891 Non-foods 936,173 874,677 858,409 Perishables 1,110,684 1,078,693 1,061,560 Gasoline 581,146 604,897 515,857 Total retail 4,071,397 3,971,355 3,860,717 Other 130,637 121,450 141,983 Total revenues from unaffiliated customers $ 4,202,034 $ 4,092,805 $ 4,002,700 Income before income taxes: Retail $ 135,395 $ 111,165 $ 112,017 Other 16,798 13,659 15,896 Total income from operations 152,193 124,824 127,913 Other income, net 1,815 3,065 3,807 Interest expense 47,410 47,570 47,458 Income before income taxes $ 106,598 $ 80,319 $ 84,262 Assets: Retail $ 1,698,904 $ 1,679,301 $ 1,600,699 Other 170,720 147,988 135,076 Elimination of intercompany receivable (2,296) (2,378) (2,469) Total assets $ 1,867,328 $ 1,824,911 $ 1,733,306 Capital expenditures: Retail $ 155,215 $ 147,851 $ 125,866 Other 6,536 2,636 1,830 Total capital expenditures $ 161,751 $ 150,487 $ 127,696 Depreciation and amortization: Retail $ 104,970 $ 105,564 $ 103,304 Other 7,550 7,519 7,625 Total depreciation and amortization $ 112,520 $ 113,083 $ 110,929 The grocery category includes grocery, dairy, and frozen foods. The non-foods category includes alcoholic beverages, tobacco, pharmacy, and health/beauty/cosmetic products. The perishable category includes meat, produce, deli and bakery. The fluid dairy operation, included in “Other”, had $42.1 million, $41.1 million and $45.9 million in sales to the grocery sales segment in fiscal 2019, 2018 and 2017, respectively. These sales were eliminated in consolidation. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Sep. 28, 2019 | |
Selected Quarterly Financial Data [Abstract] | |
Selected Quarterly Financial Data | 12. Selected Quarterly Financial Data (Unaudited) The following is a summary of unaudited financial data regarding the Company’s quarterly results of operations. Each of the quarters in the two fiscal years presented contains thirteen weeks. 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Total (amounts in thousands except earnings per common share) 2019 Net sales $ 1,061,837 $ 1,001,844 $ 1,062,262 $ 1,076,091 $ 4,202,034 Gross profit 258,411 244,301 258,940 260,348 1,022,000 Net income 22,152 15,000 23,510 20,918 81,580 Basic earnings per common share Class A 1.12 0.76 1.19 1.07 4.14 Class B 1.02 0.69 1.08 0.97 3.76 Diluted earnings per common share Class A 1.09 0.74 1.16 1.04 4.03 Class B 1.02 0.69 1.08 0.97 3.76 2018 Net sales $ 1,013,786 $ 984,562 $ 1,034,769 $ 1,059,688 $ 4,092,805 Gross profit 244,660 235,188 243,891 256,430 980,169 Net income 45,147 (1) 9,295 24,484 (2) 18,439 97,365 Basic earnings per common share Class A 2.29 0.47 1.24 0.94 4.94 Class B 2.08 0.43 1.13 0.85 4.49 Diluted earnings per common share Class A 2.23 0.46 1.21 0.91 4.81 Class B 2.08 0.43 1.13 0.85 4.49 (1) Includes $26.7 million income tax benefit from the Tax Act. (2) Includes $10.6 million income tax benefit from the Tax Act. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Sep. 28, 2019 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 13. Commitments and Contingencies Various legal proceedings and claims arising in the ordinary course of business are pending against the Company. In the opinion of management, the ultimate liability, if any, from all pending legal proceedings and claims will not materially affect the Company’s financial position, the results of its operations or its cash flows. Construction commitments at September 28, 2019 totaled $6.6 million. The Company expects these commitments to be fulfilled during fiscal year 2020. |
Fair Values Of Financial Instru
Fair Values Of Financial Instruments | 12 Months Ended |
Sep. 28, 2019 | |
Fair Values Of Financial Instruments [Abstract] | |
Fair Values Of Financial Instruments | 14. Fair Values of Financial Instruments The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments: Cash and cash equivalents: The carrying amounts reported in the Consolidated Balance Sheets for cash and cash equivalents approximate their fair values. Receivables: The carrying amounts reported in the Consolidated Balance Sheets for receivables approximate their fair values. 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, interest rate swap, and non-qualified plan assets at September 28, 2019 is as follows (in thousands): Carrying Amount Fair Value Fair Value Measurements Senior Notes $ 700,000 $ 714,875 Level 2 Facility Bonds 72,560 72,560 Level 2 Secured notes payable and other 79,678 79,678 Level 2 Interest rate swap derivative contract liability 1,675 1,675 Level 2 Non-qualified retirement plan assets 15,493 15,493 Level 2 The fair values for Level 2 measurements were determined primarily using market yields and taking into consideration the underlying terms of the debt. |
Cash Flow Information
Cash Flow Information | 12 Months Ended |
Sep. 28, 2019 | |
Cash Flow Information [Abstract] | |
Cash Flow Information | 15. Cash Flow Information Supplemental disclosure of cash flow information is as follows: 2019 2018 2017 Cash paid during the year for: Interest (net of amounts capitalized) $ 47,465,459 $ 47,347,470 $ 46,689,266 Income taxes (11,697,668) 13,672,964 28,415,489 Non cash items: Property and equipment additions included in accounts payable 8,007,879 8,161,384 7,213,949 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Sep. 28, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 16. Related Party Transactions The Company will from time to time make short-term non-interest bearing loans to the Company’s Investment/Profit Sharing Plan to allow the plan to meet distribution obligations during a time when the plan was prohibited from selling shares of the Company’s Class A common stock. There were no such loans outstanding at September 28, 2019 and September 29, 2018. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 28, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17. Subsequent Events In November, 2019 The Company closed a $155 million ten -year amortizing real estate loan (the “Loan”) and issued notice to redeem a like principal amount of 5.75% senior notes due in 2023 (the “Notes”). The Loan will be funded and the Notes will be redeemed thirty days after the redemption notice in December, 2019. The Notes will be redeemed at 101.917% of par value, and the Company will recognize debt extinguishment costs of approximately $3.0 million during the quarter ending December 28, 2019. The Loan matures January 31, 2030 and has monthly principal payments of $0.65 million plus floating rate interest based on LIBOR. Additionally, effective October 1, 2019, the Company entered into a notional amount $155 million interest rate swap contract to convert the variable rate on the Loan to a fixed interest rate of 2.95 %. The notional amount of the swap declines each month by $0.65 million, consistent with the required principal payments of the loan. |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Sep. 28, 2019 | |
Summary Of Significant Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations – Ingles Markets, Incorporated (“Ingles” or the “Company”), is a leading supermarket chain in the southeast United States, operates 198 supermarkets in North Carolina ( 73 ), Georgia (66) , South Carolina (36) , Tennessee (21) , Virginia (1) and Alabama (1) . |
Principles of Consolidation | Principles of Consolidation – The consolidated financial statements include the accounts of Ingles Markets, Incorporated and its wholly-owned subsidiaries, Sky King, Inc., Ingles Markets Investments, Inc., Milkco, Inc., Land O Sky, LLC, Shopping Center Financing, LLC, and Shopping Center Financing II, LLC. All significant inter-company balances and transactions are eliminated in consolidation. |
Fiscal Year | Fiscal Year – The Company’s fiscal year ends on the last Saturday in September. Fiscal years 2019 and 2018 each consisted of 52 weeks. Fiscal year 2017 consisted of 53 weeks. |
Segment Information | Segment Information – The Company operates one primary business segment, retail grocery sales (representing the aggregation of individual retail stores). The “Other” segment includes our remaining operations -- fluid dairy and shopping center rentals. |
New Accounting Pronouncements | New Accounting Pronouncements – In February 2016 the Financial Accounting Standards Board (FASB) issued ASU 2016-02, "Leases" (ASU 2016-02), which requires the Company as lessee to recognize most leases on the balance sheet thereby resulting in the recognition of right of use assets and lease obligations for those leases currently classified as operating leases. The accounting for leases where the Company is the lessor remains largely unchanged. ASU 2016-02 became effective for the Company on September 29, 2019 and the Company elected the optional transition method which permits entities to change the date of initial application of the standard to the beginning of the year of adoption and to recognize the effects of applying ASU 2016-02 as a cumulative-effect adjustment to the opening balance of retained earnings. Certain qualitative and quantitative disclosures are also required. While the Company is still finalizing our adoption procedures, the Company estimates the primary impact to the consolidated financial position upon adoption will be the recognition, on a discounted basis, of minimum commitments under noncancelable operating leases on the consolidated balance sheets resulting in the recording of right of use assets and lease obligations for approximately $45 to $55 million. The Company does not expect a material impact to the Company’s consolidated statements of income, comprehensive income, stockholders’ equity, or cash flows. 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 revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be 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 adopted the standard in the first quarter of fiscal 2019, and determined the impact of adopting the new guidance was immaterial to its annual and interim financial statements. The Company’s assessment included a detailed review of contracts for each of its disaggregated revenue streams and a comparison of its historical accounting policies and practices to the new standard. |
Cash Equivalents | Cash Equivalents – All highly liquid investments with a maturity of three months or less when purchased are considered cash. Outstanding checks in excess of bank balances are included in the line item “Accounts payable – trade” on the Consolidated Balance Sheets. There were no such balances at September 28, 2019 and September 29, 2018, respectively. |
Financial Instruments | Financial Instruments – The Company at times has short-term investments and certificates of deposit with maturities of three months or less when purchased that are included in cash. At September 28, 2019, the Company had no such investments. The Company’s policy is to invest its excess cash either in money market accounts, reverse repurchase agreements or in certificates of deposit. Money market accounts and certificates of deposit are not secured; reverse repurchase agreements are secured by government obligations. At September 28, 2019 demand deposits of approximately $37.6 million in three banks exceed the $250,000 FDIC insurance limit per bank. |
Interest Rate Swaps | Interest Rate Swaps – The Company utilizes interest rate swap contracts to reduce its exposure to fluctuations in variable interest rates for future interest payments on some of its debt instruments. For determining the fair value of the interest rate swap contract, the Company uses significant observable market data or assumptions about counterparty risk. The fair value estimates reflect an income approach based on the terms of the interest rate swap contracts and inputs corroborated by observable market data including interest rate curves. The Company has designated its swaps as cash flow hedges, for which the Company records the effective portions of changes in its fair value, net of tax, in other comprehensive income (loss). To the extent interest rate swaps are determined to be ineffective, the Company recognizes the change in the estimated fair value of the swaps in earnings. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts – Accounts receivable are primarily from vendor allowances, customer charges and pharmacy insurance company reimbursements. Accounts receivable are stated net of an allowance for uncollectible accounts, which is determined through analysis of the aging of accounts receivable at the date of the consolidated financial statements and assessments of the collectability based upon historical collection activity adjusted for current conditions. |
Inventories | Inventories – Substantially all of the Company’s inventory consists of finished goods. Warehouse inventories are valued at the lower of average cost or market. Store inventories are valued using the retail method under which inventories at cost (and the resulting gross margins) are determined by applying a calculated cost-to-retail ratio to the retail value of inventories. As an integral part of valuing inventory at cost, management makes certain judgments and estimates for standard gross margins, allowances for vendor consideration, markdowns and shrinkage. Warehousing and distribution costs are not included in the valuation of inventories. The Company reviews its judgments and estimates regularly and makes adjustments where facts and circumstances dictate. |
Property, Equipment and Depreciation | Property, Equipment and Depreciation – Property and equipment are stated at cost and depreciated over the estimated useful lives by the straight-line method. Buildings are generally depreciated over 30 years. Store, office and warehouse equipment is generally depreciated over three to 10 years. Transportation equipment is generally depreciated over three to five years. Leasehold improvements are depreciated over the shorter of the subject lease term or the useful life of the asset, generally from three to 30 years. Depreciation and amortization expense totaled $ 112.5 million , $113.1 million and $1 10.9 million for fiscal years 2019, 2018 and 2017, respectively. |
Asset Impairments | Asset Impairments – The Company accounts for the impairment of long-lived assets in accordance with FASB Accounting Standards Codification (“FASB ASC”) Topic 360. Asset groups are primarily comprised of individual store and shopping center properties. For assets to be held and used, the Company tests for impairment using undiscounted cash flows and calculates the amount of impairment using discounted cash flows. For assets held for sale, impairment is recognized based on the excess of remaining book value over expected recovery value. The recovery value is the fair value as determined by independent quotes or expected sales prices developed by internal associates, less costs to sell. Estimates of future cash flows and expected sales prices are judgments based upon the Company’s experience and knowledge of local operations and cash flows that are projected for several years into the future. These estimates can fluctuate significantly due to changes in real estate market conditions, the economic environment, capital spending decisions and inflation. The Company monitors the carrying value of long-lived assets for potential impairment each quarter based on whether any indicators of impairment have occurred. |
Nonqualified Investment Plan | 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 termination of employment. In accordance with the trust, the Company may not use these assets for general corporate purposes. Life insurance policies and marketable securities held in the trust are included in the caption “Other assets” in the Consolidated Balance Sheets. |
Self-Insurance | Self-Insurance – The Company is self-insured for workers’ compensation, general liability and group medical and dental benefits. Risks and uncertainties are associated with self-insurance; however, the Company has limited its exposure by maintaining excess liability coverage of $1,000,000 per occurrence for workers’ compensation, $500,000 for general liability, and $450,000 per covered person for medical care benefits for a policy year. Effective October 1, 2019 the excess liability limit was increased to $1,000,000 for general liability. Self-insurance liabilities are established based on claims filed and estimates of claims incurred but not reported. The estimates are based on data provided by the respective claims administrators, which is then applied to appropriate actuarial methods. These estimates can fluctuate if historical trends are not predictive of the future. The Company’s self-insurance reserves totaled $31.0 million and $34.7 million for employee group insurance, workers’ compensation insurance and general liability insurance at September 28, 201 9 and September 29, 2018, respectively. These amounts are inclusive of expected recoveries from excess cost insurance or other sources that are recorded as receivables of $3.6 at September 28, 2019 and $4.6 million at September 29, 2018. The Company is required in certain cases to obtain letters of credit to support its self-insured status. At fiscal year-end 2019, the Company’s self-insured liabilities were supported by a $2.6 million certificate of deposit and by $9.0 million of undrawn letters of credit which expire between September and October 2019 . The Company carries casualty insurance only on those properties where it is required to do so. The Company has elected to self-insure its other properties. |
Income Taxes | Income Taxes – The Company accounts for income taxes under FASB ASC Topic 740. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates. The Company accounts for uncertainty in income taxes by prescribing a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken on a tax return. The Company files income tax returns with federal and various state jurisdictions. With few exceptions, the Company is no longer subject to federal or state income tax examinations by tax authorities for the years before tax year 2015. Examinations may challenge certain of the Company’s tax positions. Actual results could materially differ from these estimates and could significantly affect the effective tax rate and cash flows in the future years. Valuation allowances are established when necessary to reduce deferred tax assets to the amount more likely than not expected to be realized. Gross unrecognized tax benefits as well as interest and penalties related to uncertain tax positions could affect the Company’s effective tax rate. These amounts are insignificant for fiscal years 2019, 2018, and 2017. |
Pre-Opening Costs | Pre-Opening Costs – Costs associated with the opening of new stores are expensed when incurred. |
Per-Share Amounts | Per-Share Amounts – The Company calculates earnings per share using the two-class method in accordance with FASB ASC Topic 260. |
Advertising | Advertising – The Company expenses advertising as incurred. Advertising and promotion expenses, net of vendor allowance reimbursements, totaled $10.0 million, $12.6 million and $12.5 million for fiscal years 2019, 2018 and 2017, respectively. |
Use of Estimates | Use of Estimates – The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although these estimates are based on management’s knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. Such estimates include the allowance for doubtful accounts, various inventory reserves, realizability of deferred tax assets, and self-insurance reserves. |
Cost of Goods Sold | Cost of Goods Sold – In addition to the direct product cost, cost of goods sold for the grocery segment includes inbound freight charges and costs of the Company’s distribution network. Milk processing is a manufacturing process. Therefore, cost of goods sold include direct product and production costs, inbound freight, purchasing and receiving costs, inspection costs, warehousing costs, internal transfer costs, and other costs of distribution. Depreciation expense included in costs of goods sold totaled $14.5 million, $ 14.4 million and $1 5.4 million for fiscal years 2019, 2018 and 2017, respectively. |
Operating and Administrative Expenses | Operating and Administrative Expenses – Operating and administrative expenses include costs incurred for store and administrative labor, occupancy, depreciation (to the extent not included in Cost of Goods Sold), insurance and general administration. |
Revenue Recognition | Revenue Recognition – The Company recognizes revenues from grocery segment sales at the point of sale to its customers. Sales taxes collected from customers are not included in reported revenues. Discounts provided to customers by the Company at the point of sale, including discounts provided in connection with loyalty cards, are recognized as a reduction in sales as the products are sold. Product returns are not significant. The Company recognizes fluid dairy revenues at the time the risk of loss shifts to the customer pursuant to our terms of sale. Therefore, approximately 54% of fluid dairy revenues are recognized when the product is picked up by the customer at our facility. The remaining fluid dairy revenues are recognized when the product is received at the customer’s facility upon delivery via transportation arranged by the Company. Rental income, including contingent rentals, is recognized on the accrual basis. Upfront consideration paid by either the Company as lessor or by the lessee is recognized as an adjustment to net rental income using the straight line method over the term of the lease. |
Vendor Allowances | Vendor Allowances – The Company receives funds for a variety of merchandising activities from the many vendors whose products the Company buys for resale in its stores. These incentives and allowances are primarily comprised of volume or purchase based incentives, advertising allowances, slotting fees, and promotional discounts. The purpose of these incentives and allowances is generally to help defray the costs incurred by the Company for stocking, advertising, promoting and selling the vendors’ products. These allowances generally relate to short term arrangements with vendors, often relating to a period of a month or less, and are negotiated on a purchase-by-purchase or transaction-by-transaction basis. Whenever possible, vendor discounts and allowances that relate to buying and merchandising activities are recorded as a component of item cost in inventory and recognized in merchandise costs when the item is sold. Due to system constraints and the nature of certain allowances, it is sometimes not practicable to apply allowances to the item cost of inventory. In those instances, the allowances are applied as a reduction of merchandise costs using a rational and systematic methodology, which results in the recognition of these incentives when the inventory related to the vendor consideration received is sold. Vendor allowances applied as a reduction of merchandise costs totaled $111.7 million, $116.5 million, and $116.6 million for the fiscal years ended September 28, 2019, September 29, 2018 and September 30, 2017, respectively. Vendor advertising allowances that represent a reimbursement of specific identifiable incremental costs of advertising the vendor’s specific products are recorded as a reduction to the related expense in the period that the related expense is incurred. Vendor advertising allowances recorded as a reduction of advertising expense totaled $13.8 million, $14.1 million, and $13.8 million for the fiscal years ended September 28, 2019, September 29, 2018 and September 30, 2017, respectively. If vendor advertising allowances were substantially reduced or eliminated, the Company would likely consider other methods of advertising as well as the volume and frequency of its product advertising, which could increase or decrease its expenditures. Similarly, the Company is not able to assess the impact of vendor advertising allowances on the creation of additional revenue; as such allowances do not directly generate revenue for its stores |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Income Taxes [Abstract] | |
Schedule Of Deferred Income Tax Liabilities And Assets | 2019 2018 Deferred tax liabilities: Property and equipment tax/book differences $ 88,151,000 $ 87,577,000 Property tax method 1,228,000 1,156,000 Total deferred tax liabilities 89,379,000 88,733,000 Deferred tax assets: Insurance reserves 4,280,000 4,790,000 Advance payments on purchases contracts 698,000 761,000 Vacation accrual 1,723,000 1,652,000 Inventory 1,086,000 1,055,000 Deferred compensation 4,002,000 3,662,000 Other 2,091,000 2,352,000 Total deferred tax assets 13,880,000 14,272,000 Net deferred tax liabilities $ 75,499,000 $ 74,461,000 |
Schedule Of Income Tax Expense Reconciliation | 2019 2018 2017 Federal tax at statutory rate $ 22,386,000 $ 19,678,000 $ 29,492,000 State income tax, net of federal tax benefits 3,726,000 3,528,000 2,774,000 Federal tax credits (1,184,000) (1,052,000) (1,024,000) Tax rate change on deferred tax balance as of Federal law enactment date — (26,680,000) — Tax method change — (10,606,000) — Tax rate change effect of FY18 current deferred activity — (2,124,000) — Other 90,000 210,000 (854,000) Total $ 25,018,000 $ (17,046,000) $ 30,388,000 |
Schedule Of Current And Deferred Income Tax Expense (Benefit) | 2019 2018 2017 Current: Federal $ 18,774,000 $ (21,596,000) $ 26,994,000 State 4,797,000 7,000 4,925,000 Total current 23,571,000 (21,589,000) 31,919,000 Deferred: Federal 1,510,000 1,020,000 (1,104,000) State (63,000) 3,523,000 (427,000) Total deferred 1,447,000 4,543,000 (1,531,000) Total expense (benefit) $ 25,018,000 $ (17,046,000) $ 30,388,000 |
Property And Equipment (Tables)
Property And Equipment (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Property And Equipment [Abstract] | |
Schedule Of Property And Equipment | 2019 2018 Land $ 373,434,259 $ 351,073,344 Construction in progress 26,206,372 12,393,293 Buildings 1,212,984,091 1,173,237,017 Store, office and warehouse equipment 979,229,721 946,026,834 Transportation equipment 78,851,265 75,919,047 Leasehold improvements 56,455,431 54,387,952 Total 2,727,161,139 2,613,037,487 Less accumulated depreciation and amortization 1,382,893,824 1,309,993,117 Property and equipment - net $ 1,344,267,315 $ 1,303,044,370 |
Property Held For Lease And R_2
Property Held For Lease And Rental Income (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Property Held For Lease And Rental Income [Abstract] | |
Schedule Of Rental Income | 2019 2018 2017 Rents earned on owned and subleased properties: Base rentals including lease termination payments $ 14,821,734 $ 10,826,997 $ 8,847,035 Contingent rentals 278,660 249,965 334,204 Total 15,100,394 11,076,962 9,181,239 Depreciation on owned properties leased to others (5,183,712) (5,132,805) (5,255,719) Other shopping center expenses (3,640,110) (2,967,860) (2,654,976) Total $ 6,276,572 $ 2,976,297 $ 1,270,544 |
Schedule Of Owned Properties Under Operating Leases By Major Classes | September 28, September 29, 2019 2018 Land $ 57,568,972 $ 54,348,413 Buildings 179,723,671 170,700,496 Total 237,292,643 225,048,909 Less accumulated depreciation (97,321,740) (108,754,494) Total $ 139,970,903 $ 116,294,415 |
Schedule Of Minimum Future Rental Income | Fiscal Year 2020 $ 11,265,775 2021 8,855,781 2022 6,967,583 2023 5,862,260 2024 5,145,632 Thereafter 13,723,315 Total minimum future rental income $ 51,820,346 |
Leases And Rental Expense (Tabl
Leases And Rental Expense (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Leases And Rental Expense [Abstract] | |
Components Of Aggregate Minimum Rental Commitments | Fiscal Year 2020 $ 9,756,136 2021 7,532,373 2022 6,692,661 2023 4,907,148 2024 2,583,629 Thereafter 27,187,519 Total minimum future rental commitments $ 58,659,466 |
Supplementary Balance Sheet I_2
Supplementary Balance Sheet Information (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Supplementary Balance Sheet Information [Abstract] | |
Accrued Expenses and Current Portion of Other Long-Term Liabilities | 2019 2018 Property, payroll, and other taxes payable $ 20,273,626 $ 22,327,253 Salaries, wages, and bonuses payable 31,861,220 29,583,266 Self-insurance liabilities: Employee group insurance 5,704,565 5,257,120 Workers’ compensation insurance 4,287,445 5,079,514 General liability insurance 3,154,282 3,239,695 Interest 13,342,260 13,397,615 Other 5,025,885 3,240,303 Total accrued expenses and current portion of other long-term liabilities $ 83,649,283 $ 82,124,766 |
Schedule of Other Long-Term Liabilities | 2019 2018 Advance payments on purchases contracts $ 2,856,569 $ 3,115,106 Deferred lease expense 1,949,992 1,941,708 Nonqualified investment plan liability 16,446,037 15,033,318 Self-insurance liabilities: Workers’ compensation insurance 13,814,615 16,333,768 General liability insurance 4,050,070 4,776,234 Other 3,906,319 2,124,800 Other long-term liabilities 43,023,602 43,324,934 Less current portion 1,133,920 1,166,773 Total other long-term liabilities $ 41,889,682 $ 42,158,161 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Long-Term Debt [Abstract] | |
Schedule of Long-Term Debt And Short-Term Loans | 2019 2018 Bonds payable: Senior notes, interest rate of 5.75% , maturing 2023 $ 700,000,000 $ 700,000,000 Recovery Zone Facility Bonds, maturing 2036 72,560,000 77,090,000 Outstanding line of credit, weighted average interest rate of 5.75% for 2019 — — Notes payable due to banks, weighted average interest rate of 4.43% for 2019 and 3.68% for 2018 84,948,582 94,535,898 Less unamortized prepaid loan costs (5,270,760) (6,038,125) Total long-term debt 852,237,822 865,587,773 Less current portion 12,600,131 12,848,013 Long-term debt, net of current portion $ 839,637,691 $ 852,739,760 |
Schedule Of Redemption Prices Of Senior Notes | Year 2018 102.875% 2019 101.917% 2020 100.958% 2021 and thereafter 100.000% |
Schedule Of Components Of Interest Costs | 2019 2018 2017 Total interest costs $ 48,675,993 $ 48,707,921 $ 48,675,895 Interest capitalized (1,265,889) (1,138,218) (1,217,862) Interest expense $ 47,410,104 $ 47,569,703 $ 47,458,033 |
Schedule of Maturities of Long-Term Debt | Fiscal Year 2020 $ 14,286,665 2021 14,453,256 2022 14,625,277 2023 714,804,840 2024 14,991,327 Thereafter 84,347,217 Less unamortized prepaid loan costs (5,270,760) Total $ 852,237,822 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Earnings Per Common Share [Abstract] | |
Reconciliation Of Numerators And Denominators Of Basic And Diluted Earnings Per Share | Year Ended September 28, 2019 Class A Class B Numerator: Allocated net income Net income allocated, basic $ 58,635,758 $ 22,944,244 Conversion of Class B to Class A shares 22,944,244 — Net income allocated, diluted $ 81,580,002 $ 22,944,244 Denominator: Weighted average shares outstanding Weighted average shares outstanding, basic 14,163,776 6,096,000 Conversion of Class B to Class A shares 6,096,000 — Weighted average shares outstanding, diluted 20,259,776 6,096,000 Earnings per share Basic $ 4.14 $ 3.76 Diluted $ 4.03 $ 3.76 Year Ended Year Ended September 29, 2018 September 30, 2017 Class A Class B Class A Class B Numerator: Allocated net income Net income allocated, basic $ 69,790,716 $ 27,573,912 $ 38,393,384 $ 15,480,196 Conversion of Class B to Class A shares 27,573,912 — 15,480,196 — Net income allocated, diluted $ 97,364,628 $ 27,573,912 $ 53,873,580 $ 15,480,196 Denominator: Weighted average shares outstanding Weighted average shares outstanding, basic 14,123,182 6,136,594 14,039,125 6,220,651 Conversion of Class B to Class A shares 6,136,594 — 6,220,651 — Weighted average shares outstanding, diluted 20,259,776 6,136,594 20,259,776 6,220,651 Earnings per share Basic $ 4.94 $ 4.49 $ 2.74 $ 2.49 Diluted $ 4.81 $ 4.49 $ 2.66 $ 2.49 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Segment Information [Abstract] | |
Operations By Lines Of Business | 2019 2018 2017 Revenues from unaffiliated customers: Grocery $ 1,443,394 $ 1,413,088 $ 1,424,891 Non-foods 936,173 874,677 858,409 Perishables 1,110,684 1,078,693 1,061,560 Gasoline 581,146 604,897 515,857 Total retail 4,071,397 3,971,355 3,860,717 Other 130,637 121,450 141,983 Total revenues from unaffiliated customers $ 4,202,034 $ 4,092,805 $ 4,002,700 Income before income taxes: Retail $ 135,395 $ 111,165 $ 112,017 Other 16,798 13,659 15,896 Total income from operations 152,193 124,824 127,913 Other income, net 1,815 3,065 3,807 Interest expense 47,410 47,570 47,458 Income before income taxes $ 106,598 $ 80,319 $ 84,262 Assets: Retail $ 1,698,904 $ 1,679,301 $ 1,600,699 Other 170,720 147,988 135,076 Elimination of intercompany receivable (2,296) (2,378) (2,469) Total assets $ 1,867,328 $ 1,824,911 $ 1,733,306 Capital expenditures: Retail $ 155,215 $ 147,851 $ 125,866 Other 6,536 2,636 1,830 Total capital expenditures $ 161,751 $ 150,487 $ 127,696 Depreciation and amortization: Retail $ 104,970 $ 105,564 $ 103,304 Other 7,550 7,519 7,625 Total depreciation and amortization $ 112,520 $ 113,083 $ 110,929 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Selected Quarterly Financial Data [Abstract] | |
Summary Of Unaudited Selected Quarterly Financial Data | 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Total (amounts in thousands except earnings per common share) 2019 Net sales $ 1,061,837 $ 1,001,844 $ 1,062,262 $ 1,076,091 $ 4,202,034 Gross profit 258,411 244,301 258,940 260,348 1,022,000 Net income 22,152 15,000 23,510 20,918 81,580 Basic earnings per common share Class A 1.12 0.76 1.19 1.07 4.14 Class B 1.02 0.69 1.08 0.97 3.76 Diluted earnings per common share Class A 1.09 0.74 1.16 1.04 4.03 Class B 1.02 0.69 1.08 0.97 3.76 2018 Net sales $ 1,013,786 $ 984,562 $ 1,034,769 $ 1,059,688 $ 4,092,805 Gross profit 244,660 235,188 243,891 256,430 980,169 Net income 45,147 (1) 9,295 24,484 (2) 18,439 97,365 Basic earnings per common share Class A 2.29 0.47 1.24 0.94 4.94 Class B 2.08 0.43 1.13 0.85 4.49 Diluted earnings per common share Class A 2.23 0.46 1.21 0.91 4.81 Class B 2.08 0.43 1.13 0.85 4.49 (1) Includes $26.7 million income tax benefit from the Tax Act. (2) Includes $10.6 million income tax benefit from the Tax Act. |
Fair Values Of Financial Inst_2
Fair Values Of Financial Instruments (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Fair Values Of Financial Instruments [Abstract] | |
Carrying Amount And Fair Value Of Debt, Interest Rate Swap And Non-Qualified Plan Assets | Carrying Amount Fair Value Fair Value Measurements Senior Notes $ 700,000 $ 714,875 Level 2 Facility Bonds 72,560 72,560 Level 2 Secured notes payable and other 79,678 79,678 Level 2 Interest rate swap derivative contract liability 1,675 1,675 Level 2 Non-qualified retirement plan assets 15,493 15,493 Level 2 |
Cash Flow Information (Tables)
Cash Flow Information (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Cash Flow Information [Abstract] | |
Supplemental Disclosure Of Cash Flow Information | 2019 2018 2017 Cash paid during the year for: Interest (net of amounts capitalized) $ 47,465,459 $ 47,347,470 $ 46,689,266 Income taxes (11,697,668) 13,672,964 28,415,489 Non cash items: Property and equipment additions included in accounts payable 8,007,879 8,161,384 7,213,949 |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Details) | 12 Months Ended | ||||
Sep. 28, 2019USD ($)segmentitem | Sep. 29, 2018USD ($) | Sep. 30, 2017USD ($) | Oct. 01, 2019USD ($) | Sep. 29, 2019USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of locations | item | 198 | ||||
Number of operating segments | segment | 1 | ||||
Outstanding checks in excess of bank balances | $ 0 | $ 0 | |||
Short-term investments and certificates of deposit | 0 | ||||
Demand deposits | $ 37,600,000 | ||||
Number of banks | item | 3 | ||||
FDIC insurance limit per bank | $ 250,000 | ||||
Total depreciation expense | 112,500,000 | 113,100,000 | $ 110,900,000 | ||
Liability coverage per occurrence for workers compensation | 1,000,000 | ||||
Liability coverage for general liability | 500,000 | ||||
Liability coverage per covered person for medical care benefits | 450,000 | ||||
Company's self insurance reserves | 31,000,000 | 34,700,000 | |||
Expected self-insurance recoveries from excess cost insurance | 3,600,000 | 4,600,000 | |||
Certificate of deposit | 2,600,000 | ||||
Undrawn letters of credit | 9,000,000 | ||||
Advertising and promotion expenses, net of vendor allowances | 10,000,000 | 12,600,000 | 12,500,000 | ||
Depreciation expense included in costs of goods sold totaled | $ 14,500,000 | 14,400,000 | 15,400,000 | ||
Fluid dairy revenues recognition | 54.00% | ||||
Vendor allowances applied as a reduction of merchandise costs | $ 111,700,000 | 116,500,000 | 116,600,000 | ||
Vendor advertising allowances recorded as a reduction of advertising expense | $ 13,800,000 | $ 14,100,000 | $ 13,800,000 | ||
Subsequent Event [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Liability coverage for general liability | $ 1,000,000 | ||||
Undrawn Letters Of Credit [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Expiry date of undrawn letters of credit, End | Oct. 31, 2019 | ||||
Accounting Standards Update 2016-02 [Member] | Subsequent Event [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Right of use assets | $ 45,000,000 | ||||
Lease obligations | $ 55,000,000 | ||||
Buildings [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Useful life of property, plant and equipment | 30 years | ||||
Minimum [Member] | Store, Office and Warehouse Equipment [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Useful life of property, plant and equipment | 3 years | ||||
Minimum [Member] | Transportation Equipment [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Useful life of property, plant and equipment | 3 years | ||||
Minimum [Member] | Leasehold Improvements [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Useful life of property, plant and equipment | 3 years | ||||
Maximum [Member] | Store, Office and Warehouse Equipment [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Useful life of property, plant and equipment | 10 years | ||||
Maximum [Member] | Transportation Equipment [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Useful life of property, plant and equipment | 5 years | ||||
Maximum [Member] | Leasehold Improvements [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Useful life of property, plant and equipment | 30 years | ||||
North Carolina [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of locations | item | 73 | ||||
Georgia [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of locations | item | 66 | ||||
South Carolina [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of locations | item | 36 | ||||
Tennessee [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of locations | item | 21 | ||||
Virginia [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of locations | item | 1 | ||||
Alabama [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of locations | item | 1 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 30, 2017 | Sep. 29, 2018 | Sep. 28, 2019 |
Income Taxes [Abstract] | |||||
Federal corporate tax rate | 21.00% | 35.00% | |||
Decrease in net deferred tax liabilities as a result of the decrease in the federal rate | $ 26.7 | $ 10.6 | |||
Refundable current income taxes | $ 36.7 | $ 1 |
Income Taxes (Schedule Of Defer
Income Taxes (Schedule Of Deferred Income Tax Liabilities And Assets) (Details) - USD ($) | Sep. 28, 2019 | Sep. 29, 2018 |
Income Taxes [Abstract] | ||
Property and equipment tax/book differences | $ 88,151,000 | $ 87,577,000 |
Property tax method | 1,228,000 | 1,156,000 |
Total deferred tax liabilities | 89,379,000 | 88,733,000 |
Insurance reserves | 4,280,000 | 4,790,000 |
Advance payments on purchases contracts | 698,000 | 761,000 |
Vacation accrual | 1,723,000 | 1,652,000 |
Inventory | 1,086,000 | 1,055,000 |
Deferred compensation | 4,002,000 | 3,662,000 |
Other | 2,091,000 | 2,352,000 |
Total deferred tax assets | 13,880,000 | 14,272,000 |
Net deferred tax liabilities | $ 75,499,000 | $ 74,461,000 |
Income Taxes (Schedule Of Incom
Income Taxes (Schedule Of Income Tax Expense Reconciliation) (Details) - USD ($) | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Income Taxes [Abstract] | |||
Federal tax at statutory rate | $ 22,386,000 | $ 19,678,000 | $ 29,492,000 |
State income tax, net of federal tax benefits | 3,726,000 | 3,528,000 | 2,774,000 |
Federal tax credits | (1,184,000) | (1,052,000) | (1,024,000) |
Tax rate change on deferred tax balance as of Federal law enactment date | (26,680,000) | ||
Tax method change | (10,606,000) | ||
Tax rate change effect of FY18 current deferred activity | (2,124,000) | ||
Other | 90,000 | 210,000 | (854,000) |
Total expense (benefit) | $ 25,018,000 | $ (17,046,000) | $ 30,388,000 |
Income Taxes (Schedule Of Curre
Income Taxes (Schedule Of Current And Deferred Income Tax Expense (Benefit)) (Details) - USD ($) | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Income Taxes [Abstract] | |||
Federal, current | $ 18,774,000 | $ (21,596,000) | $ 26,994,000 |
State, current | 4,797,000 | 7,000 | 4,925,000 |
Total current | 23,571,000 | (21,589,000) | 31,919,000 |
Federal, deferred | 1,510,000 | 1,020,000 | (1,104,000) |
State, deferred | (63,000) | 3,523,000 | (427,000) |
Total deferred | 1,447,000 | 4,543,000 | (1,531,000) |
Total expense (benefit) | $ 25,018,000 | $ (17,046,000) | $ 30,388,000 |
Property And Equipment (Schedul
Property And Equipment (Schedule Of Property And Equipment) (Details) - USD ($) | Sep. 28, 2019 | Sep. 29, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 2,727,161,139 | $ 2,613,037,487 |
Less accumulated depreciation and amortization | 1,382,893,824 | 1,309,993,117 |
Property and equipment - net | 1,344,267,315 | 1,303,044,370 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 373,434,259 | 351,073,344 |
Construction In Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 26,206,372 | 12,393,293 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 1,212,984,091 | 1,173,237,017 |
Store, Office and Warehouse Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 979,229,721 | 946,026,834 |
Transportation Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 78,851,265 | 75,919,047 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 56,455,431 | $ 54,387,952 |
Property Held For Lease And R_3
Property Held For Lease And Rental Income (Narrative) (Details) | 12 Months Ended |
Sep. 28, 2019item | |
Property Held For Lease And Rental Income [Abstract] | |
Number of shopping centers | 79 |
Maximum period for non-cancelable operating lease agreements | 20 years |
Property Held For Lease And R_4
Property Held For Lease And Rental Income (Schedule Of Rental Income) (Details) - USD ($) | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Property Held For Lease And Rental Income [Abstract] | |||
Base rentals including lease termination payments | $ 14,821,734 | $ 10,826,997 | $ 8,847,035 |
Contingent rentals | 278,660 | 249,965 | 334,204 |
Total | 15,100,394 | 11,076,962 | 9,181,239 |
Depreciation on owned properties leased to others | (5,183,712) | (5,132,805) | (5,255,719) |
Other shopping center expenses | (3,640,110) | (2,967,860) | (2,654,976) |
Total | $ 6,276,572 | $ 2,976,297 | $ 1,270,544 |
Property Held For Lease And R_5
Property Held For Lease And Rental Income (Schedule Of Owned Properties Under Operating Leases By Major Classes) (Details) - USD ($) | Sep. 28, 2019 | Sep. 29, 2018 |
Property Subject to or Available for Operating Lease [Line Items] | ||
Property subject to operating lease, Gross | $ 237,292,643 | $ 225,048,909 |
Less accumulated depreciation | (97,321,740) | (108,754,494) |
Total | 139,970,903 | 116,294,415 |
Land [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property subject to operating lease, Gross | 57,568,972 | 54,348,413 |
Buildings [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property subject to operating lease, Gross | $ 179,723,671 | $ 170,700,496 |
Property Held For Lease And R_6
Property Held For Lease And Rental Income (Schedule Of Minimum Future Rental Income) (Details) | Sep. 28, 2019USD ($) |
Property Held For Lease And Rental Income [Abstract] | |
2020 | $ 11,265,775 |
2021 | 8,855,781 |
2022 | 6,967,583 |
2023 | 5,862,260 |
2024 | 5,145,632 |
Thereafter | 13,723,315 |
Total minimum future rental income | $ 51,820,346 |
Leases and Rental Expense (Narr
Leases and Rental Expense (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Leases And Rental Expense [Abstract] | |||
Lease term | 20 years | ||
Rent expense for all operating leases | $ 12.4 | $ 12.8 | $ 13.6 |
Operating sub-lease rental income | $ 0.3 | $ 0.3 | $ 0.3 |
Leases and Rental Expense (Comp
Leases and Rental Expense (Components Of Aggregate Minimum Rental Commitments) (Details) | Sep. 28, 2019USD ($) |
Leases And Rental Expense [Abstract] | |
Minimum future rental commitments 2020 | $ 9,756,136 |
Minimum future rental commitments 2021 | 7,532,373 |
Minimum future rental commitments 2022 | 6,692,661 |
Minimum future rental commitments 2023 | 4,907,148 |
Minimum future rental commitments 2024 | 2,583,629 |
Minimum future rental commitments thereafter | 27,187,519 |
Total minimum future rental commitments | $ 58,659,466 |
Supplementary Balance Sheet I_3
Supplementary Balance Sheet Information (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Supplementary Balance Sheet Information [Abstract] | |||
Employee insurance expense | $ 37.3 | $ 37.7 | $ 33.1 |
Supplementary Balance Sheet I_4
Supplementary Balance Sheet Information (Accrued Expenses And Current Portion Of Other Long-Term Liabilities) (Details) - USD ($) | Sep. 28, 2019 | Sep. 29, 2018 |
Supplementary Balance Sheet Information [Line Items] | ||
Property, payroll, and other taxes payable | $ 20,273,626 | $ 22,327,253 |
Salaries, wages and bonuses payable | 31,861,220 | 29,583,266 |
Interest | 13,342,260 | 13,397,615 |
Other | 5,025,885 | 3,240,303 |
Total | 83,649,283 | 82,124,766 |
Employee Group Insurance [Member] | ||
Supplementary Balance Sheet Information [Line Items] | ||
Self-insurance liabilities | 5,704,565 | 5,257,120 |
Workers' Compensation Insurance [Member] | ||
Supplementary Balance Sheet Information [Line Items] | ||
Self-insurance liabilities | 4,287,445 | 5,079,514 |
General Liability Insurance [Member] | ||
Supplementary Balance Sheet Information [Line Items] | ||
Self-insurance liabilities | $ 3,154,282 | $ 3,239,695 |
Supplementary Balance Sheet I_5
Supplementary Balance Sheet Information (Schedule Of Other Long-Term Liabilities) (Details) - USD ($) | Sep. 28, 2019 | Sep. 29, 2018 |
Supplementary Balance Sheet Information [Line Items] | ||
Advance payments on purchases contracts | $ 2,856,569 | $ 3,115,106 |
Deferred lease expense | 1,949,992 | 1,941,708 |
Nonqualified investment plan liability | 16,446,037 | 15,033,318 |
Other | 3,906,319 | 2,124,800 |
Other long-term liabilities | 43,023,602 | 43,324,934 |
Less current portion | 1,133,920 | 1,166,773 |
Other long-term liabilities | 41,889,682 | 42,158,161 |
Workers' Compensation Insurance [Member] | ||
Supplementary Balance Sheet Information [Line Items] | ||
Self-insurance liabilities | 13,814,615 | 16,333,768 |
General Liability Insurance [Member] | ||
Supplementary Balance Sheet Information [Line Items] | ||
Self-insurance liabilities | $ 4,050,070 | $ 4,776,234 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2010USD ($)ft² | Sep. 28, 2019USD ($) | Sep. 29, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2013USD ($) | |
Debt Instrument [Line Items] | ||||||
Change in fair value of interest rate swap | $ (1,674,636) | |||||
Other long-term liabilities | 41,889,682 | $ 42,158,161 | ||||
Property and equipment with undepreciated cost pledge as collateral for long term debt | 198,200,000 | |||||
Interest Rate Swap [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Derivative notional amount | $ 58,500,000 | |||||
Derivative, fixed interest rate | 3.92% | |||||
Change in fair value of interest rate swap | 1,300,000 | |||||
Other long-term liabilities | $ 1,700,000 | |||||
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 notes | 2023 | |||||
Debt instrument stated interest rate | 5.75% | 5.75% | ||||
Redemption period of senior notes description | redeem all or a portion of the Notes at any time on or after June 15, 2018 | |||||
Redemption of senior notes, date | Jun. 15, 2018 | |||||
Secured Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument principal amount | $ 60,000,000 | |||||
Debt maturity date | Oct. 1, 2027 | |||||
Monthly principal amortization | $ 500,000 | |||||
Recovery Zone Facility Bonds [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt maturity date | Jan. 1, 2036 | |||||
Total amount of bonds funded | $ 99,700,000 | |||||
Total area of new warehouse and distribution center | ft² | 830,000 | |||||
Annual amount of redemption of bonds | 4,500,000 | |||||
Credit Line [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility borrowing capacity | 175,000,000 | |||||
Borrowings outstanding | $ 0 | |||||
Line of credit facility expiration date | Sep. 30, 2022 | |||||
Credit Line [Member] | Unused Letters Of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility borrowing capacity | $ 20,000,000 | |||||
Unused letters of credit issued | $ 9,000,000 |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-Term Debt And Short-Term Loans) (Details) - USD ($) | Sep. 28, 2019 | Sep. 29, 2018 |
Debt Instrument [Line Items] | ||
Less unamortized prepaid loan costs | $ (5,270,760) | $ (6,038,125) |
Total long-term debt | 852,237,822 | 865,587,773 |
Less current portion | 12,600,131 | 12,848,013 |
Long-term debt, net of current portion | 839,637,691 | 852,739,760 |
Senior Notes, Interest Rate of 5.75%, Maturing 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Bonds payable | $ 700,000,000 | $ 700,000,000 |
Interest rate | 5.75% | 5.75% |
Recovery Zone Facility Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Bonds payable | $ 72,560,000 | $ 77,090,000 |
Line of Credit Payable [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 5.75% | |
Notes payable due to banks, weighted average interest rate of 4.43% for 2019 | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 84,948,582 | $ 94,535,898 |
Weighted average interest rate | 4.43% | 3.68% |
Long-Term Debt (Schedule Of Red
Long-Term Debt (Schedule Of Redemption Prices Of Senior Notes) (Details) | 12 Months Ended |
Sep. 28, 2019 | |
2018 | |
Debt instrument, redemption price as percentage of principal amount | 102.875% |
2019 | |
Debt instrument, redemption price as percentage of principal amount | 101.917% |
2020 | |
Debt instrument, redemption price as percentage of principal amount | 100.958% |
2021 and thereafter | |
Debt instrument, redemption price as percentage of principal amount | 100.00% |
Long-Term Debt (Schedule Of Com
Long-Term Debt (Schedule Of Components Of Interest Costs) (Details) - USD ($) | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Long-Term Debt [Abstract] | |||
Total interest costs | $ 48,675,993 | $ 48,707,921 | $ 48,675,895 |
Interest capitalized | (1,265,889) | (1,138,218) | (1,217,862) |
Interest expense | $ 47,410,104 | $ 47,569,703 | $ 47,458,033 |
Long-Term Debt (Schedule Of Mat
Long-Term Debt (Schedule Of Maturities Of Long-Term Debt) (Details) - USD ($) | Sep. 28, 2019 | Sep. 29, 2018 |
Long-Term Debt [Abstract] | ||
2020 | $ 14,286,665 | |
2021 | 14,453,256 | |
2022 | 14,625,277 | |
2023 | 714,804,840 | |
2024 | 14,991,327 | |
Thereafter | 84,347,217 | |
Less unamortized prepaid loan costs | (5,270,760) | $ (6,038,125) |
Total long-term debt | $ 852,237,822 | $ 865,587,773 |
Stockholder's Equity (Narrative
Stockholder's Equity (Narrative) (Details) | 12 Months Ended |
Sep. 28, 2019item | |
Class of Stock [Line Items] | |
Percentage of cash dividend or liquidation payment based on Class B common stock | 110.00% |
Minimum [Member] | |
Class of Stock [Line Items] | |
Number of directors that can be set by board of directors | 5 |
Maximum [Member] | |
Class of Stock [Line Items] | |
Number of directors that can be set by board of directors | 11 |
Class A Common Stock [Member] | |
Class of Stock [Line Items] | |
Number of votes per share held by common stock holders | 1 |
Percentage of directors to be elected by holders of common stock | 25.00% |
Class B Common Stock [Member] | |
Class of Stock [Line Items] | |
Number of votes per share held by common stock holders | 10 |
Minimum percentage of outstanding common stock of both classes represented by common stock | 12.50% |
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 | 12 Months Ended | |||||||||
Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Class A Common Stock [Member] | |||||||||||
Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share [Line Items] | |||||||||||
Net income allocated, basic | $ 58,635,758 | $ 69,790,716 | $ 38,393,384 | ||||||||
Conversion of Class B to Class A shares | 22,944,244 | 27,573,912 | 15,480,196 | ||||||||
Net income allocated, diluted | $ 81,580,002 | $ 97,364,628 | $ 53,873,580 | ||||||||
Weighted average shares outstanding, basic | 14,163,776 | 14,123,182 | 14,039,125 | ||||||||
Conversion of Class B to Class A shares | 6,096,000 | 6,136,594 | 6,220,651 | ||||||||
Weighted average shares outstanding, diluted | 20,259,776 | 20,259,776 | 20,259,776 | ||||||||
Earnings per share, Basic | $ 1.07 | $ 1.19 | $ 0.76 | $ 1.12 | $ 0.94 | $ 1.24 | $ 0.47 | $ 2.29 | $ 4.14 | $ 4.94 | $ 2.74 |
Earnings per share, Diluted | 1.04 | 1.16 | 0.74 | 1.09 | 0.91 | 1.21 | 0.46 | 2.23 | $ 4.03 | $ 4.81 | $ 2.66 |
Class B Common Stock [Member] | |||||||||||
Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share [Line Items] | |||||||||||
Net income allocated, basic | $ 22,944,244 | $ 27,573,912 | $ 15,480,196 | ||||||||
Net income allocated, diluted | $ 22,944,244 | $ 27,573,912 | $ 15,480,196 | ||||||||
Weighted average shares outstanding, basic | 6,096,000 | 6,136,594 | 6,220,651 | ||||||||
Weighted average shares outstanding, diluted | 6,096,000 | 6,136,594 | 6,220,651 | ||||||||
Earnings per share, Basic | 0.97 | 1.08 | 0.69 | 1.02 | 0.85 | 1.13 | 0.43 | 2.08 | $ 3.76 | $ 4.49 | $ 2.49 |
Earnings per share, Diluted | $ 0.97 | $ 1.08 | $ 0.69 | $ 1.02 | $ 0.85 | $ 1.13 | $ 0.43 | $ 2.08 | $ 3.76 | $ 4.49 | $ 2.49 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Investment/Profit Sharing Plan [Member] | |||
Postemployment and Postretirement Benefit Plans [Line Items] | |||
Operating and administrative expenses | $ 2,900 | $ 2,800 | $ 2,400 |
Nonqualified Investment Plan [Member] | |||
Postemployment and Postretirement Benefit Plans [Line Items] | |||
Operating and administrative expenses | 224 | 215 | 159 |
Cash Bonuses [Member] | |||
Postemployment and Postretirement Benefit Plans [Line Items] | |||
Operating and administrative expenses | $ 11,900 | $ 11,900 | $ 10,600 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Sep. 28, 2019USD ($)segment | Sep. 29, 2018USD ($) | Sep. 30, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | segment | 1 | ||
Fluid dairy [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales eliminated in consolidation | $ | $ 42.1 | $ 41.1 | $ 45.9 |
Segment Information (Operations
Segment Information (Operations By Lines Of Business) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Segment Reporting Information By Segment [Line Items] | |||||||||||
Total revenues from unaffiliated customers | $ 1,076,091,000 | $ 1,062,262,000 | $ 1,001,844,000 | $ 1,061,837,000 | $ 1,059,688,000 | $ 1,034,769,000 | $ 984,562,000 | $ 1,013,786,000 | $ 4,202,033,610 | $ 4,092,804,877 | $ 4,002,699,727 |
Total income from operations | 152,193,135 | 124,823,641 | 127,912,744 | ||||||||
Other income, net | 1,814,971 | 3,064,690 | 3,806,869 | ||||||||
Interest expense | 47,410,104 | 47,569,703 | 47,458,033 | ||||||||
Income before income taxes | 106,598,002 | 80,318,628 | 84,261,580 | ||||||||
Total assets | 1,867,328,368 | 1,824,910,820 | 1,867,328,368 | 1,824,910,820 | 1,733,306,000 | ||||||
Total capital expenditures | 161,751,023 | 150,486,508 | 127,695,650 | ||||||||
Depreciation and amortization expense | 112,520,100 | 113,082,675 | 110,929,378 | ||||||||
Elimination of intercompany receivable [Member] | |||||||||||
Segment Reporting Information By Segment [Line Items] | |||||||||||
Total assets | (2,296,000) | (2,378,000) | (2,296,000) | (2,378,000) | (2,469,000) | ||||||
Grocery [Member] | |||||||||||
Segment Reporting Information By Segment [Line Items] | |||||||||||
Total revenues from unaffiliated customers | 1,443,394,000 | 1,413,088,000 | 1,424,891,000 | ||||||||
Non-foods [Member] | |||||||||||
Segment Reporting Information By Segment [Line Items] | |||||||||||
Total revenues from unaffiliated customers | 936,173,000 | 874,677,000 | 858,409,000 | ||||||||
Perishables [Member] | |||||||||||
Segment Reporting Information By Segment [Line Items] | |||||||||||
Total revenues from unaffiliated customers | 1,110,684,000 | 1,078,693,000 | 1,061,560,000 | ||||||||
Gasoline [Member] | |||||||||||
Segment Reporting Information By Segment [Line Items] | |||||||||||
Total revenues from unaffiliated customers | 581,146,000 | 604,897,000 | 515,857,000 | ||||||||
Retail [Member] | |||||||||||
Segment Reporting Information By Segment [Line Items] | |||||||||||
Total revenues from unaffiliated customers | 4,071,397,000 | 3,971,355,000 | 3,860,717,000 | ||||||||
Total income from operations | 135,395,000 | 111,165,000 | 112,017,000 | ||||||||
Total assets | 1,698,904,000 | 1,679,301,000 | 1,698,904,000 | 1,679,301,000 | 1,600,699,000 | ||||||
Total capital expenditures | 155,215,000 | 147,851,000 | 125,866,000 | ||||||||
Depreciation and amortization expense | 104,970,000 | 105,564,000 | 103,304,000 | ||||||||
Other Segment [Member] | |||||||||||
Segment Reporting Information By Segment [Line Items] | |||||||||||
Total revenues from unaffiliated customers | 130,637,000 | 121,450,000 | 141,983,000 | ||||||||
Total income from operations | 16,798,000 | 13,659,000 | 15,896,000 | ||||||||
Total assets | $ 170,720,000 | $ 147,988,000 | 170,720,000 | 147,988,000 | 135,076,000 | ||||||
Total capital expenditures | 6,536,000 | 2,636,000 | 1,830,000 | ||||||||
Depreciation and amortization expense | $ 7,550,000 | $ 7,519,000 | $ 7,625,000 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Summary Of Unaudited Selected Quarterly Financial Data) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||
Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |||
Class of Stock [Line Items] | |||||||||||||
Net sales | $ 1,076,091,000 | $ 1,062,262,000 | $ 1,001,844,000 | $ 1,061,837,000 | $ 1,059,688,000 | $ 1,034,769,000 | $ 984,562,000 | $ 1,013,786,000 | $ 4,202,033,610 | $ 4,092,804,877 | $ 4,002,699,727 | ||
Gross profit | 260,348,000 | 258,940,000 | 244,301,000 | 258,411,000 | 256,430,000 | 243,891,000 | 235,188,000 | 244,660,000 | 1,022,000,212 | 980,169,361 | 963,593,003 | ||
Net income | $ 20,918,000 | $ 23,510,000 | $ 15,000,000 | $ 22,152,000 | $ 18,439,000 | 24,484,000 | [1] | $ 9,295,000 | 45,147,000 | [2] | $ 81,580,002 | $ 97,364,628 | $ 53,873,580 |
Income tax benefit from Tax Act | $ 10,600,000 | $ 26,700,000 | |||||||||||
Class A Common Stock [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Basic earnings per common share | $ 1.07 | $ 1.19 | $ 0.76 | $ 1.12 | $ 0.94 | $ 1.24 | $ 0.47 | $ 2.29 | $ 4.14 | $ 4.94 | $ 2.74 | ||
Diluted earnings per common share | 1.04 | 1.16 | 0.74 | 1.09 | 0.91 | 1.21 | 0.46 | 2.23 | 4.03 | 4.81 | 2.66 | ||
Class B Common Stock [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Basic earnings per common share | 0.97 | 1.08 | 0.69 | 1.02 | 0.85 | 1.13 | 0.43 | 2.08 | 3.76 | 4.49 | 2.49 | ||
Diluted earnings per common share | $ 0.97 | $ 1.08 | $ 0.69 | $ 1.02 | $ 0.85 | $ 1.13 | $ 0.43 | $ 2.08 | $ 3.76 | $ 4.49 | $ 2.49 | ||
[1] | Includes $10.6 million income tax benefit from the Tax Act. | ||||||||||||
[2] | Includes $26.7 million income tax benefit from the Tax Act. |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) $ in Millions | 12 Months Ended |
Sep. 28, 2019USD ($) | |
Commitments And Contingencies [Abstract] | |
Construction commitments | $ 6.6 |
Fair Values Of Financial Inst_3
Fair Values Of Financial Instruments (Carrying Amount And Fair Value Of Debt, Interest Rate Swap And Non-Qualified Plan Assetst) (Details) - Level 2 [Member] $ in Thousands | Sep. 28, 2019USD ($) |
Carrying Amount [Member] | Non-Qualified Retirement Plan [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Debt | $ 15,493 |
Carrying Amount [Member] | Interest Rate Swap [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Debt | 1,675 |
Fair Value [Member] | Non-Qualified Retirement Plan [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Debt | 15,493 |
Fair Value [Member] | Interest Rate Swap [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Debt | 1,675 |
Senior Notes [Member] | Carrying Amount [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Debt | 700,000 |
Senior Notes [Member] | Fair Value [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Debt | 714,875 |
Facility Bonds [Member] | Carrying Amount [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Debt | 72,560 |
Facility Bonds [Member] | Fair Value [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Debt | 72,560 |
Secured Notes Payable And Other [Member] | Carrying Amount [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Debt | 79,678 |
Secured Notes Payable And Other [Member] | Fair Value [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Debt | $ 79,678 |
Cash Flow Information (Suppleme
Cash Flow Information (Supplemental Disclosure Of Cash Flow Information) (Details) - USD ($) | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Cash paid during the year for: | |||
Interest (net of amounts capitalized) | $ 47,465,459 | $ 47,347,470 | $ 46,689,266 |
Income taxes | (11,697,668) | 13,672,964 | 28,415,489 |
Non cash items: | |||
Property and equipment additions included in accounts payable | $ 8,007,879 | $ 8,161,384 | $ 7,213,949 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) | Sep. 28, 2019 | Sep. 29, 2018 |
Related Party Transactions [Abstract] | ||
Short-term non-interest bearing loans outstanding to investment/profit sharing plan | $ 0 | $ 0 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - USD ($) | Nov. 01, 2019 | Dec. 28, 2019 | Oct. 01, 2019 | Sep. 28, 2019 | Sep. 29, 2018 | Dec. 31, 2017 | Jun. 30, 2013 |
Interest Rate Swap [Member] | |||||||
Derivative notional amount | $ 58,500,000 | ||||||
Derivative, fixed interest rate | 3.92% | ||||||
Interest Rate Swap [Member] | Subsequent Event [Member] | |||||||
Derivative notional amount | $ 155,000,000 | ||||||
Derivative, fixed interest rate | 2.95% | ||||||
Senior Notes, Interest Rate of 5.75%, Maturing 2023 [Member] | |||||||
Debt instrument principal amount | $ 700,000,000 | ||||||
Debt instrument stated interest rate | 5.75% | 5.75% | |||||
Senior Notes, Interest Rate of 5.75%, Maturing 2023 [Member] | Subsequent Event [Member] | |||||||
Loan redeption period after rdemption notice | 30 days | ||||||
Senior Notes, Interest Rate of 5.75%, Maturing 2023 [Member] | Forecast [Member] | |||||||
Debt instrument, redemption price as percentage of principal amount | 101.917% | ||||||
Loss on early extinguishment of debt | $ 3,000,000 | ||||||
Real Estate Loan (the “Loan”) [Member] | Subsequent Event [Member] | |||||||
Debt instrument principal amount | $ 155,000,000 | ||||||
Debt instrument term | 10 years | ||||||
Debt maturity date | Jan. 31, 2030 | ||||||
Debt instrument, periodic principal payment | $ 650,000 |