Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 24, 2022 | Nov. 21, 2022 | Mar. 26, 2022 | |
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 24, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 0-14706 | ||
Entity Registrant Name | INGLES MARKETS, INCORPORATED | ||
Entity Incorporation, State or Country Code | NC | ||
Entity Tax Identification Number | 56-0846267 | ||
Entity Address, Address Line One | 2913 U.S. Hwy. 70 West | ||
Entity Address, City or Town | Black Mountain | ||
Entity Address, State or Province | NC | ||
Entity Address, Postal Zip Code | 28711 | ||
City Area Code | 828 | ||
Local Phone Number | 669-2941 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
ICFR Auditor Attestation Flag | true | ||
Title of 12(b) Security | Class A Common Stock, $0.05 par value per share | ||
Trading Symbol | IMKTA | ||
Security Exchange Name | NASDAQ | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,350 | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Current Fiscal Year End Date | --09-24 | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Entity Central Index Key | 0000050493 | ||
Amendment Flag | false | ||
Documents Incorporated by Reference | Certain information required in Part III hereof is incorporated by reference to the Proxy Statement for the registrant’s 2023 Annual Meeting of Stockholders to be filed with the Securities and Exchange Commission pursuant to Regulation 14A no later than 120 days after the end of the fiscal year covered by this report. | ||
Auditor Firm ID | 34 | ||
Auditor Name | DELOITTE & TOUCHE LLP | ||
Auditor Location | Charlotte, North Carolina | ||
Class A Common Stock [Member] | |||
Entity Common Stock, Shares Outstanding | 14,379,575 | ||
Class B Common Stock [Member] | |||
Entity Common Stock, Shares Outstanding | 4,614,801 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 24, 2022 | Sep. 25, 2021 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 267,198,517 | $ 70,313,350 |
Short term investments | 5,000,000 | |
Receivables (less allowance for doubtful accounts of $382,657 – 2022 and $157,343 – 2021) | 97,157,614 | 95,082,014 |
Inventories | 457,945,539 | 389,953,456 |
Other | 15,830,032 | 15,091,595 |
Total current assets | 838,131,702 | 575,440,415 |
PROPERTY AND EQUIPMENT, NET | 1,374,031,169 | 1,370,769,432 |
OPERATING LEASE RIGHT OF USE ASSETS | 38,594,968 | 40,145,098 |
OTHER ASSETS | 44,752,886 | 31,989,010 |
TOTAL ASSETS | 2,295,510,725 | 2,018,343,955 |
CURRENT LIABILITIES: | ||
Current portion of long-term debt | 17,620,789 | 17,600,739 |
Current portion of operating lease liabilities | 7,797,975 | 8,635,998 |
Accounts payable - trade | 213,388,385 | 189,432,027 |
Accrued expenses and current portion of other long-term liabilities | 94,969,902 | 90,428,567 |
Total current liabilities | 333,777,051 | 306,097,331 |
DEFERRED INCOME TAXES | 73,578,000 | 72,768,000 |
LONG-TERM DEBT | 554,287,420 | 571,913,204 |
NONCURRENT OPERATING LEASE LIABILITIES | 32,794,609 | 33,887,935 |
OTHER LONG-TERM LIABILITIES | 41,479,220 | 50,418,947 |
Total liabilities | 1,035,916,300 | 1,035,085,417 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred stock, $0.05 par value; 10,000,000 shares authorized; no shares issued | ||
Accumulated other comprehensive income | 12,406,551 | (3,426,140) |
Retained earnings | 1,246,238,155 | 985,734,959 |
Total stockholders’ equity | 1,259,594,425 | 983,258,538 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 2,295,510,725 | 2,018,343,955 |
Class A Common Stock [Member] | ||
STOCKHOLDERS’ EQUITY: | ||
Common stocks | 718,879 | 713,567 |
Class B Common Stock [Member] | ||
STOCKHOLDERS’ EQUITY: | ||
Common stocks | $ 230,840 | $ 236,152 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 24, 2022 | Sep. 25, 2021 |
Allowance for doubtful accounts | $ 382,657 | $ 157,343 |
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 | 14,377,575 | 14,271,335 |
Common stock, shares outstanding | 14,377,575 | 14,271,335 |
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 | 4,616,801 | 4,723,041 |
Common stock, shares outstanding | 4,616,801 | 4,723,041 |
Consolidated Statements Of Inco
Consolidated Statements Of Income And Other Comprehensive Income - USD ($) | 12 Months Ended | ||
Sep. 24, 2022 | Sep. 25, 2021 | Sep. 26, 2020 | |
Net sales | $ 5,678,835,032 | $ 4,987,919,603 | $ 4,610,609,025 |
Cost of goods sold | 4,263,066,672 | 3,684,486,289 | 3,412,357,115 |
Gross profit | 1,415,768,360 | 1,303,433,314 | 1,198,251,910 |
Operating and administrative expenses | 1,040,193,885 | 963,331,599 | 921,749,183 |
Gain from sale or disposal of assets | 1,358,109 | 9,955,890 | 4,434,359 |
Income from operations | 376,932,584 | 350,057,605 | 280,937,086 |
Other income, net | 5,845,479 | 2,971,629 | 1,737,596 |
Interest expense | 21,508,135 | 24,332,143 | 40,529,096 |
Loss on early extinguishment of debt | 1,082,633 | 7,101,153 | |
Income before income taxes | 361,269,928 | 327,614,458 | 235,044,433 |
Income tax expense | 88,511,000 | 77,883,000 | 56,443,000 |
Net income | 272,758,928 | 249,731,458 | 178,601,433 |
Other comprehensive income (expense): | |||
Change in fair value of interest rate swap | 20,951,691 | 9,031,156 | (11,887,660) |
Income tax (benefit) expense | (5,119,000) | (2,206,000) | 2,902,014 |
Other comprehensive income (expense), net of tax | 15,832,691 | 6,825,156 | (8,985,646) |
Comprehensive income | $ 288,591,619 | $ 256,556,614 | $ 169,615,787 |
Class A Common Stock [Member] | |||
Per-share amounts: | |||
Basic earnings per common share | $ 14.69 | $ 13.06 | $ 9.06 |
Diluted earnings per common share | 14.36 | 12.73 | 8.82 |
Cash dividends per common share | 0.66 | 0.66 | 0.66 |
Class B Common Stock [Member] | |||
Per-share amounts: | |||
Basic earnings per common share | 13.35 | 11.87 | 8.24 |
Diluted earnings per common share | 13.35 | 11.87 | 8.24 |
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 | Class A Common Stock [Member] | Class B Common Stock [Member] Common Stock [Member] | Class B Common Stock [Member] Retained Earnings | Class B Common Stock [Member] | Paid-in Capital in Excess of Par Value | Accumulated Other Comprehensive Loss [Member] | Retained Earnings | Total |
Balance at Sep. 28, 2019 | $ 709,024 | $ 303,965 | $ 12,311,249 | $ (1,265,650) | $ 650,664,018 | $ 662,722,606 | ||||
Balance (in shares) at Sep. 28, 2019 | 14,180,485 | 6,079,291 | ||||||||
Net income | 178,601,433 | 178,601,433 | ||||||||
Other comprehensive income (expense) | (8,985,646) | (8,985,646) | ||||||||
Cash dividends | $ (9,367,248) | $ (9,367,248) | $ (3,640,188) | $ (3,640,188) | ||||||
Common stock conversions | $ 1,594 | $ (1,594) | ||||||||
Common stock conversions (in shares) | 31,875 | (31,875) | ||||||||
Balance at Sep. 26, 2020 | $ 710,618 | $ 302,371 | 12,311,249 | (10,251,296) | 816,258,015 | 819,330,957 | ||||
Balance (in shares) at Sep. 26, 2020 | 14,212,360 | 6,047,416 | ||||||||
Net income | 249,731,458 | 249,731,458 | ||||||||
Other comprehensive income (expense) | 6,825,156 | 6,825,156 | ||||||||
Cash dividends | (9,396,169) | (9,396,169) | (3,234,276) | (3,234,276) | ||||||
Stock repurchases, at cost | $ (63,270) | $ (12,311,249) | (67,624,069) | (79,998,588) | ||||||
Stock repurchases, at cost, Shares | (1,265,400) | |||||||||
Common stock conversions | $ 2,949 | $ (2,949) | ||||||||
Common stock conversions (in shares) | 58,975 | (58,975) | ||||||||
Balance at Sep. 25, 2021 | $ 713,567 | $ 236,152 | (3,426,140) | 985,734,959 | 983,258,538 | |||||
Balance (in shares) at Sep. 25, 2021 | 14,271,335 | 4,723,041 | ||||||||
Net income | 272,758,928 | 272,758,928 | ||||||||
Other comprehensive income (expense) | 15,832,691 | 15,832,691 | ||||||||
Cash dividends | $ (9,450,149) | $ (9,450,149) | $ (2,805,583) | $ (2,805,583) | ||||||
Common stock conversions | $ 5,312 | $ (5,312) | ||||||||
Common stock conversions (in shares) | 106,240 | (106,240) | ||||||||
Balance at Sep. 24, 2022 | $ 718,879 | $ 230,840 | $ 12,406,551 | $ 1,246,238,155 | $ 1,259,594,425 | |||||
Balance (in shares) at Sep. 24, 2022 | 14,377,575 | 4,616,801 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) | 12 Months Ended | ||
Sep. 24, 2022 | Sep. 25, 2021 | Sep. 26, 2020 | |
Cash Flows From Operating Activities: | |||
Net income | $ 272,758,928 | $ 249,731,458 | $ 178,601,433 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 117,801,654 | 117,103,658 | 116,282,239 |
Non cash operating lease cost | 7,935,225 | 8,006,820 | 9,091,019 |
Gain from sale or disposal of assets | (1,358,109) | (9,955,890) | (4,434,359) |
Loss on early extinguishment of debt | 1,082,633 | 7,101,153 | |
Receipt of advance payments on purchases contracts | 2,766,995 | 2,328,167 | 3,996,454 |
Recognition of advance payments on purchases contracts | (3,037,321) | (2,889,553) | (4,026,852) |
Deferred income taxes | (4,309,000) | (2,772,000) | 737,000 |
Changes in operating assets and liabilities | |||
Receivables | (2,075,600) | (13,723,657) | (9,407,042) |
Inventory | (67,992,082) | (23,129,018) | 7,304,622 |
Other assets | 2,708,240 | (3,948,861) | (8,276,159) |
Operating lease liabilities | (8,316,444) | (8,384,435) | (9,463,632) |
Accounts payable and accrued expenses | 22,615,984 | (7,152,634) | 62,611,221 |
Net Cash Provided By Operating Activities | 339,498,470 | 306,296,688 | 350,117,097 |
Cash Flows From Investing Activities: | |||
Proceeds from sales of property and equipment | 2,618,907 | 17,612,326 | 5,413,781 |
Purchase of short term investments | (110,210,267) | (295,000,000) | |
Proceeds of short term investments | 115,210,267 | 290,000,000 | |
Capital expenditures | (119,608,974) | (140,597,162) | (122,767,178) |
Net Cash Used By Investing Activities | (111,990,067) | (127,984,836) | (117,353,397) |
Cash Flows From Financing Activities: | |||
Proceeds from short-term borrowings | 653,623,780 | 112,835,439 | |
Payments on short-term borrowings | (692,507,850) | (73,951,369) | |
Debt issuance costs | (5,576,832) | (854,789) | |
Proceeds from issuance of bonds | 350,000,000 | ||
Proceeds from new long-term borrowings | 155,000,000 | ||
Principal payments on long-term borrowings | (18,367,504) | (327,812,521) | (442,640,345) |
Prepayment penalties on debt extinguishment | (5,366,350) | ||
Stock repurchases | (79,998,588) | ||
Dividends | (12,255,732) | (12,630,446) | (13,007,436) |
Net Cash Used By Financing Activities | (30,623,236) | (114,902,457) | (267,984,850) |
Increase (decrease) in Cash and Cash Equivalents | 196,885,167 | 63,409,395 | (35,221,150) |
Cash and Cash Equivalents at Beginning of Year | 70,313,350 | 6,903,955 | 42,125,105 |
Cash and Cash Equivalents at End of Year | $ 267,198,517 | $ 70,313,350 | $ 6,903,955 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Sep. 24, 2022 | |
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 ( 75 ), Georgia ( 65 ), South Carolina ( 35 ), 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 2022, 2021 and 2020 each consisted of 52 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. The Company defines its segments as those operations for which the Company’s chief operating decision maker regularly reviews results to analyze performance and allocate resources. New Accounting Pronouncements – In March 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting .” The ASU provides optional guidance to ease the potential burden in accounting for reference rate reform on financial reporting in response to the risk of cessation of the London Interbank Offered Rate (“LIBOR”). This amendment provides for optional expedients and exceptions for applying generally accepted accounting principles to contracts and hedging relationships that are affected by LIBOR and other reference rates. The ASU generally allows for hedge accounting to continue if the hedge was highly effective or met other standards prior to reference rate reform. Entities are permitted to apply the amendments to all contracts, cash flow and net investment hedge relationships that exist as of March 12, 2020. The relief provided in this ASU is only available for a limited time, currently through December 31, 2022. The Company’s debt agreements and interest rate swaps that utilize LIBOR have not yet discontinued the use of LIBOR and, therefore, this ASU is not yet effective for us. To the extent our debt and interest rate swap arrangements change to another accepted rate within the timeline provided by this ASU, we will utilize the relief in this ASU to continue hedge accounting. Cash and Cash Equivalents – 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 24, 2022 and September 25, 2021, respectively. At September 24, 2022 demand deposits of approximately $ 262.3 million in five banks exceed the $ 250,000 FDIC insurance limit per bank. Short Term Investments – From time to time, the Company purchases financial products that can be readily converted into cash and accounts for such financial products as short-term investments. The financial products include money market funds, bonds, and mutual funds. The carrying values of the Company’s short term investments approximate fair value because of their liquidity. 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 contracts, 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 (expense). 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 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 years to 10 years. Transportation equipment is generally depreciated over three years 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 years to 30 years. Depreciation and amortization expense totaled $ 117.8 million , $ 117.1 million and $ 116.3 million for fiscal years 2022, 2021 and 2020, 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 associates 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 associates 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. The liability to plan participants totaled $ 18.4 million at September 24, 2022 and $ 21.0 million at September 25, 2021. The settlement of this obligation is dependent upon participant elections to withdraw funds, which cannot be predicted. 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, and for general liability, and $ 475,000 per covered person for medical care benefits for a policy year. 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 $ 32.1 million for employee group insurance, workers’ compensation insurance and general liability insurance at September 24, 2022 and September 25, 2021, respectively. These amounts are inclusive of expected recoveries from excess cost insurance or other sources that are recorded as receivables of $ 4.0 million at September 24, 2022 and $ 4.2 million at September 25, 2021. The Company is required in certain cases to pledge certificates of deposit or obtain surety bonds to support its self-insured status. 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 2018. 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 2022, 2021, and 2020. 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 $ 20.8 million, $ 18.6 million and $ 15.8 million for fiscal years 2022, 2021 and 2020, 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 $ 15.0 million, $ 16.4 million and $ 15.6 million for fiscal years 2022, 2021 and 2020, 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 49 % 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 composed 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 practical, 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, the use of the retail method for store inventory, 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 $ 110.6 million, $ 116.3 million, and $ 107.5 million for the fiscal years ended September 24, 2022, September 25, 2021 and September 26, 2020, 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 $ 7.1 million, $ 8.1 million, and $ 8.0 million for the fiscal years ended September 24, 2022, September 25, 2021 and September 26, 2020, respectively. During fiscal years 2022, 2021 and 2020, the COVID-19 pandemic increased the Company’s sales. As a result, vendors offered a lower level of incentives for the Company to sell their products. 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. 24, 2022 | |
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: 2022 2021 Deferred tax liabilities: Property and equipment tax/book differences $ 82,457,000 $ 88,736,000 Interest rate swaps 4,011,000 — Property tax method 1,450,000 1,051,000 Total deferred tax liabilities 87,918,000 89,787,000 Deferred tax assets: Insurance reserves 4,303,000 5,030,000 Advance payments on purchases contracts 487,000 553,000 Vacation accrual 1,977,000 1,867,000 Inventory 1,571,000 1,368,000 Deferred compensation 4,483,000 5,532,000 Interest rate swaps — 1,107,000 Other 1,519,000 1,562,000 Total deferred tax assets 14,340,000 17,019,000 Net deferred tax liabilities $ 73,578,000 $ 72,768,000 Refundable current income taxes totaling $ 4.2 million and $ 2.7 million at September 24, 2022 and September 25, 2021, 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: 2022 2021 2020 Federal tax at statutory rate $ 75,783,000 $ 68,818,000 $ 49,359,000 State income tax, net of federal tax benefits 12,032,000 10,872,000 7,825,000 Federal tax credits ( 1,500,000 ) ( 1,700,000 ) ( 513,000 ) Other 2,196,000 ( 107,000 ) ( 228,000 ) Total $ 88,511,000 $ 77,883,000 $ 56,443,000 Current and deferred income tax expense (benefit) is as follows: 2022 2021 2020 Current: Federal $ 76,647,000 $ 66,526,000 $ 45,261,000 State 16,173,000 14,129,000 10,445,000 Total current expense 92,820,000 80,655,000 55,706,000 Deferred: Federal ( 3,565,000 ) ( 2,482,000 ) 1,163,000 State ( 744,000 ) ( 290,000 ) ( 426,000 ) Total deferred (benefit) expense ( 4,309,000 ) ( 2,772,000 ) 737,000 Total expense $ 88,511,000 $ 77,883,000 $ 56,443,000 |
Property And Equipment
Property And Equipment | 12 Months Ended |
Sep. 24, 2022 | |
Property And Equipment [Abstract] | |
Property And Equipment | 3. Property and Equipment Property and equipment, net, consists of the following: 2022 2021 Land $ 417,414,333 $ 399,747,689 Construction in progress 38,591,661 37,735,207 Buildings 1,350,593,056 1,304,896,586 Store, office and warehouse equipment 1,045,266,039 1,018,790,068 Transportation equipment 75,163,558 71,032,666 Leasehold improvements 60,958,847 60,986,752 Total 2,987,987,494 2,893,188,968 Less accumulated depreciation and amortization 1,613,956,325 1,522,419,536 Property and equipment - net $ 1,374,031,169 $ 1,370,769,432 |
Property Held For Lease And Ren
Property Held For Lease And Rental Income | 12 Months Ended |
Sep. 24, 2022 | |
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 24, 2022, the Company owned and operated 85 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. 2022 2021 2020 Rents earned on owned and subleased properties: Base rentals $ 20,091,776 $ 19,146,124 $ 13,881,963 Variable rentals 166,890 271,569 289,831 Total 20,258,666 19,417,693 14,171,794 Depreciation on owned properties leased to others ( 6,318,888 ) ( 5,855,749 ) ( 5,278,540 ) Other shopping center expenses ( 2,968,660 ) ( 3,299,391 ) ( 3,327,278 ) Total $ 10,971,118 $ 10,262,553 $ 5,565,976 Owned properties leased or held for lease to others under operating leases by major classes are summarized as follows: September 24, September 25, 2022 2021 Land $ 91,607,085 $ 82,896,124 Buildings 241,280,289 217,732,283 Total 332,887,374 300,628,407 Less accumulated depreciation ( 112,986,048 ) ( 103,975,838 ) Total $ 219,901,326 $ 196,652,569 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 24, 2022: Fiscal Year 2023 $ 15,913,457 2024 14,554,813 2025 13,088,508 2026 10,090,779 2027 7,691,671 Thereafter 29,954,629 Total minimum future rental income $ 91,293,857 |
Leases And Rental Expense
Leases And Rental Expense | 12 Months Ended |
Sep. 24, 2022 | |
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 lease payments. Operating lease expense is recognized on a straight-line basis over the minimum lease term. Operating Leases - Rent expense for all operating leases of $ 10.9 million, $ 11.1 million and $ 11.1 million for fiscal years 2022, 2021 and 2020, respectively, is included in operating and administrative expenses. This amount included short-term (less than one year) leases, common area expenses, and variable lease costs, all of which are insignificant. Cash paid for lease liabilities in operating activities approximates operating lease cost. Sub-lease rental income of $ 0.3 million for each of fiscal years 2022, 2021 and 2020, is included as a reduction of rental expense. Maturities of operating lease liabilities as of September 24, 2022 are as follows: Fiscal Year 2023 $ 9,097,692 2024 6,827,392 2025 6,026,685 2026 4,744,737 2027 3,894,487 Thereafter 21,286,379 Total lease payments 51,877,372 Less amount representing interest 11,284,788 Present value of lease liabilities $ 40,592,584 On the Consolidated Balance Sheets, lease extensions exercised during fiscal year 2022 increased the line items “Operating lease right of use assets” and “Noncurrent operating lease liabilities” by $ 7.9 million each during the year ended September 24, 2022. The weighted average remaining lease term for the Company’s operating leases is 13.4 years. The weighted average discount rate used to determine lease liability balances as of September 24, 2022 is 3.51 %, based on our incremental borrowing rate. |
Supplementary Balance Sheet Inf
Supplementary Balance Sheet Information | 12 Months Ended |
Sep. 24, 2022 | |
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: 2022 2021 Property, payroll, and other taxes payable $ 23,306,546 $ 22,621,486 Salaries, wages, and bonuses payable 49,619,593 45,890,517 Self-insurance liabilities: Employee group insurance 4,969,709 5,183,395 Workers’ compensation insurance 4,607,267 4,711,432 General liability insurance 3,543,885 3,424,729 Interest 4,590,254 4,481,104 Other 4,332,648 4,115,904 Total accrued expenses and current portion of other long-term liabilities $ 94,969,902 $ 90,428,567 Employee insurance expense, including workers’ compensation and medical care benefits, net of employee contributions, totaled $ 37.0 million, $ 35.5 million and $ 38.5 million for fiscal years 2022, 2021 and 2020, respectively. Other Long-Term Liabilities - Other long-term liabilities are summarized as follows: 2022 2021 Advance payments on purchases contracts $ 1,994,459 $ 2,264,784 Nonqualified investment plan liability 18,445,157 22,736,980 Self-insurance liabilities: Workers’ compensation insurance 13,287,189 14,501,624 General liability insurance 4,552,162 4,286,347 Interest rate swap liability — 4,531,140 Other 3,942,604 3,211,513 Other long-term liabilities 42,221,571 51,532,388 Less current portion 742,351 1,113,441 Total other long-term liabilities $ 41,479,220 $ 50,418,947 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 that we have a legal obligation to remove tanks at a point in the future and accordingly determined we have met the requirements for 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 24, 2022 and September 25, 2021. 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. 24, 2022 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | 7. Long-Term Debt Long-term debt and short-term loans are summarized as follows: 2022 2021 Bonds payable: Senior notes, interest rate of 4.00 %, maturing 2031 $ 350,000,000 $ 350,000,000 Recovery Zone Facility Bonds, maturing 2036 58,970,000 63,500,000 Notes payable due to banks, weighted average interest rate of 2.31 % for 2022 and 1.74 % for 2021 169,021,513 182,859,017 Less unamortized prepaid loan costs ( 6,083,304 ) ( 6,845,074 ) Total long-term debt 571,908,209 589,513,943 Less current portion 17,620,789 17,600,739 Long-term debt, net of current portion $ 554,287,420 $ 571,913,204 In November 2019, the Company closed a $ 155 million amortizing loan secured by real estate (the “Loan”) and issued notice to redeem a like principal amount of the 2023 Notes. The Loan was funded and the 2023 Notes were redeemed thirty days after the redemption notice in December 2019. The 2023 Notes were redeemed at 101.917 % of par value, and the Company recognized debt extinguishment costs of approximately $ 3.7 million during the quarter ended December 28, 2019. In June 2020, the Company issued an irrevocable notice to redeem $ 150 million principal amount of its 5.75 % senior notes due in 2023 (the “2023 Notes”). The 2023 Notes were redeemed at 100.958 % of par value on July 9, 2020. The Company recognized debt extinguishment costs of approximately $ 2.0 million during the quarter ended September 26, 2020. In July 2020, the Company issued an irrevocable notice to redeem $ 100 million principal amount of the 2023 Notes. The 2023 Notes were redeemed at 100.958 % of par value on August 27, 2020. The Company recognized debt extinguishment costs of approximately $ 1.4 million during the quarter ended September 26, 2020. Following this redemption, there was $ 295.0 million aggregate principal amount of the 2023 Notes outstanding. In June 2021, the Company issued at par $ 350.0 million aggregate principal amount of 4.00 % senior notes due in 2031 (the “2031 Notes”). Upon issuance of the 2031 Notes, the Company issued an irrevocable notice to redeem the remaining $ 295.0 million aggregate principal amount of its 2023 Notes and invested $ 295.0 million of 2031 Notes proceeds in short term investments pending redemption of the 2023 Notes. The 2023 Notes were redeemed at par value on July 16, 2021. The Company recognized debt extinguishment costs of approximately $ 1.1 million during fiscal year 2021. The Company may redeem all or a portion of the 2031 Notes at any time 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 2026 102.000 % 2027 101.333 % 2028 100.667 % 2029 and thereafter 100.000 % Additionally, The Company may also redeem all or part of the 2031 Notes at any time prior to June 15, 2026 at a redemption price equal to 100 % of the principal amount of the 2031 Notes to be redeemed plus the Applicable Premium (as defined in the indenture governing the 2031 Notes), as of, and accrued and unpaid interest to, the redemption date. Additionally, the Company may redeem up to 40 % of the aggregate principal amount of the 2031 Notes prior to June 15, 2024 with the net cash proceeds of certain sales of its capital stock at a redemption price equal to 104.0 % of the principal amount of the 2031 Notes, plus accrued and unpaid interest, if any, to the date of redemption; provided, that, after such redemption, at least 60 % of the aggregate principal amount of the 2031 Notes originally issued remains outstanding. In June 2021, the Company entered into a $ 150.0 million line of credit (the “Line”) that matures in June 2026. The Line provides the Company with various interest rate options based on the prime rate, the Federal Funds Rate, or LIBOR. The Line allows the Company to issue up to $ 10.0 million in letters of credit, of which none were issued at September 24, 2022. The Company is not required to maintain compensating balances in connection with the Line. At September 24, 2022, the Company had no borrowings outstanding under the Line. In December 2010, the Company completed the funding of $ 99.7 million of Recovery Zone Facility Bonds (the “Bonds”) for construction of new warehouse and distribution 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, such financial institutions 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. 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 2031 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 2031 Notes, the Bonds and Line at September 24, 2022. In September 2017, the Company refinanced approximately $ 60 million of secured borrowing obligations with a LIBOR-based amortizing floating rate loan secured by real estate maturing in October 2027. The Company has an interest rate swap agreement for a current notional amount of $ 30.5 million at a fixed rate of 3.92 %. Under this agreement, the Company pays monthly the fixed rate of 3.92 % and receives the one-month LIBOR plus 1.65 %. The interest rate swap effectively hedges floating rate debt in the same amount as the current notional amount of the interest swap. Both the floating rate debt and the interest rate swap have monthly principal amortization of $ 0.5 million and mature October 1, 2027 . In December 2019, the Company closed a $ 155 million LIBOR-based amortizing floating rate loan secured by real estate maturing in January 2030. The Company has an interest rate swap agreement for a current notional amount of $ 132.4 million at a fixed rate of 2.95 %. Under this agreement, the Company pays monthly the fixed rate of 2.95 % and receives the one-month LIBOR plus 1.50 %. The interest rate swap effectively hedges floating rate debt in the same amount as the current notional amount of the interest swap. Both the floating rate debt and the interest rate swap have monthly principal amortization of $ 0.65 million and mature in fiscal year 2030. 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 swaps. The Company has designated the swaps as cash flow hedges and records the changes in the estimated fair value of the swaps to other comprehensive income each period. For the fiscal year ended September 24, 2022, the Company recorded $ 15.8 million of other comprehensive income, net of income taxes, in its Consolidated Statements of Comprehensive Income. Unrealized gains of $ 16.4 million are recorded as an asset at fair value in the line “Other Assets” on the Consolidated Balance Sheet as of September 24, 2022. For the fiscal year ended September 25, 2021, the Company recorded $ 6.8 million of other comprehensive income, net of income taxes, in its Consolidated Statements of Comprehensive Income. Unrealized losses of $ 4.5 million are recorded as a liability at fair value in the line “Other Long-Term Liabilities” on the Consolidated Balance Sheet as of September 25, 2021. 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. The Company’s long-term debt agreements generally 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 at September 24, 2022. At September 24, 2022, property and equipment with an undepreciated cost of approximately $ 269.0 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. While there are no current restrictions on net income or retained earnings available for the payment of dividends, certain loan agreements contain provisions outlining minimum tangible net worth requirements that 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. Components of interest costs are as follows: 2022 2021 2020 Total interest costs $ 21,848,860 $ 25,463,076 $ 42,204,652 Interest capitalized ( 340,725 ) ( 1,130,933 ) ( 1,675,556 ) Interest expense $ 21,508,135 $ 24,332,143 $ 40,529,096 Maturities of long-term debt at September 24, 2022 are as follows: Fiscal Year 2023 $ 18,371,485 2024 18,375,140 2025 22,281,554 2026 18,280,000 2027 18,280,000 Thereafter 482,403,334 Less unamortized prepaid loan costs ( 6,083,304 ) Total $ 571,908,209 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Sep. 24, 2022 | |
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, other eligible holders, 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. 24, 2022 | |
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 24, 2022 Class A Class B Numerator: Allocated net income Net income allocated, basic $ 210,480,738 $ 62,278,190 Conversion of Class B to Class A shares 62,278,190 — Net income allocated, diluted $ 272,758,928 $ 62,278,190 Denominator: Weighted average shares outstanding Weighted average shares outstanding, basic 14,330,809 4,663,567 Conversion of Class B to Class A shares 4,663,567 — Weighted average shares outstanding, diluted 18,994,376 4,663,567 Earnings per share Basic $ 14.69 $ 13.35 Diluted $ 14.36 $ 13.35 Year Ended Year Ended September 25, 2021 September 26, 2020 Class A Class B Class A Class B Numerator: Allocated net income Net income allocated, basic $ 185,964,771 $ 63,766,687 $ 128,634,913 $ 49,966,520 Conversion of Class B to Class A shares 63,766,687 — 49,966,520 — Net income allocated, diluted $ 249,731,458 $ 63,766,687 $ 178,601,433 $ 49,966,520 Denominator: Weighted average shares outstanding Weighted average shares outstanding, basic 14,242,276 5,370,894 14,194,819 6,064,957 Conversion of Class B to Class A shares 5,370,894 — 6,064,957 — Weighted average shares outstanding, diluted 19,613,170 5,370,894 20,259,776 6,064,957 Earnings per share Basic $ 13.06 $ 11.87 $ 9.06 $ 8.24 Diluted $ 12.73 $ 11.87 $ 8.82 $ 8.24 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Sep. 24, 2022 | |
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 associates. Assets of the plan, including the Company’s Class B Common Stock, are held in trust for associates 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 $ 5.0 million, $ 5.1 million and $ 4.2 million for fiscal years 2022, 2021 and 2020, 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 associates 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 $ 440,000 , $ 375,000 and $ 294,000 for fiscal years 2022, 2021 and 2020, 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 associates 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 $ 32.3 million, $ 27.2 million and $ 35.9 million for fiscal years 2022, 2021 and 2020, respectively. The accrued liability for cash bonuses totaled $ 26.0 million at September 24, 2022 and $ 22.0 million at September 25, 2021. These amounts are included in the caption “Accrued expenses and current portion of other long-term liabilities” in the Consolidated Balance Sheets. Medical Care Plan - Medical and dental benefits are provided to qualified associates 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. 24, 2022 | |
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: 2022 2021 2020 Revenues from unaffiliated customers: Grocery $ 1,940,414 $ 1,762,872 $ 1,693,961 Non-foods 1,204,443 1,136,250 1,066,939 Perishables 1,445,042 1,349,081 1,261,537 Gasoline 885,801 583,749 459,639 Total retail 5,475,700 4,831,952 4,482,076 Other 203,135 155,968 128,533 Total revenues from unaffiliated customers $ 5,678,835 $ 4,987,920 $ 4,610,609 Income before income taxes: Retail $ 353,006 $ 327,563 $ 264,388 Other 23,927 22,495 16,549 Total income from operations 376,933 350,058 280,937 Other income, net 5,845 2,971 1,737 Interest expense 21,508 24,332 40,529 Loss on early extinguishment of debt — 1,083 7,101 Income before income taxes $ 361,270 $ 327,614 $ 235,044 Assets: Retail $ 2,042,730 $ 1,794,160 $ 1,712,203 Other 255,880 226,762 189,607 Elimination of intercompany receivable ( 3,099 ) ( 2,578 ) ( 2,511 ) Total assets $ 2,295,511 $ 2,018,344 $ 1,899,299 Capital expenditures: Retail $ 106,508 $ 138,005 $ 120,605 Other 13,101 2,592 2,162 Total capital expenditures $ 119,609 $ 140,597 $ 122,767 Depreciation and amortization: Retail $ 109,642 $ 108,745 $ 108,588 Other 8,160 8,359 7,694 Total depreciation and amortization $ 117,802 $ 117,104 $ 116,282 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 $ 51.4 million, $ 46.5 million and $ 47.0 million in sales to the grocery sales segment in fiscal 2022, 2021 and 2020, respectively. These sales were eliminated in consolidation. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Sep. 24, 2022 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 12. 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 is not expected to materially affect the Company’s financial position, the results of its operations or its cash flows. Construction commitments at September 24, 2022 totaled $ 6.5 million. The Company expects these commitments to be fulfilled during fiscal year 2023. The Company has entered into supply contracts to provide approximately 84 % of the fuel sold in its fuel centers. Pricing is based on certain market indices at the time of purchase. The suppliers can modify or terminate the contracts if the Company does not meet certain minimum monthly purchase requirements. There have been no other material changes in contractual obligations and commercial commitments subsequent to September 24, 2022 other than as described elsewhere in this Form 10-K. |
Fair Values Of Financial Instru
Fair Values Of Financial Instruments | 12 Months Ended |
Sep. 24, 2022 | |
Fair Values Of Financial Instruments [Abstract] | |
Fair Values Of Financial Instruments | 13. 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. Short term investments: The carrying amounts reported in the Consolidated Balance Sheets for short term investments 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 swaps, and non-qualified plan assets at September 24, 2022 is as follows (in thousands): Carrying Amount Fair Value Fair Value Measurements Senior Notes $ 350,000 $ 292,250 Level 2 Facility Bonds 58,970 58,970 Level 2 Secured notes payable and other 162,938 162,935 Level 2 Interest rate swaps derivative contract asset 16,421 16,421 Level 2 Non-qualified retirement plan assets 16,600 16,600 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. 24, 2022 | |
Cash Flow Information [Abstract] | |
Cash Flow Information | 14. Cash Flow Information Supplemental disclosure of cash flow information is as follows: 2022 2021 2020 Cash paid during the year for: Interest (net of amounts capitalized) $ 21,398,985 $ 26,537,234 $ 47,185,161 Income taxes 87,187,808 77,515,577 63,195,908 Non cash items: Property and equipment additions included in accounts payable 8,724,576 6,920,759 11,626,310 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Sep. 24, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 15. Related Party Transactions In August 2022, the Company sold a land parcel for $ 725 thousand to a limited liability corporation having Robert P. Ingle II, the Company’s Chairman of the Board, as one of its principals with a financial interest in the transaction. In accordance with the Company’s Related Party Transaction policy, independent fair market value appraisals were obtained to determine the selling price, and the Company’s Audit Committee approved the transaction. 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 24, 2022 or September 25, 2021. |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Sep. 24, 2022 | |
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 ( 75 ), Georgia ( 65 ), South Carolina ( 35 ), 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 2022, 2021 and 2020 each consisted of 52 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. The Company defines its segments as those operations for which the Company’s chief operating decision maker regularly reviews results to analyze performance and allocate resources. |
New Accounting Pronouncements | New Accounting Pronouncements – In March 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting .” The ASU provides optional guidance to ease the potential burden in accounting for reference rate reform on financial reporting in response to the risk of cessation of the London Interbank Offered Rate (“LIBOR”). This amendment provides for optional expedients and exceptions for applying generally accepted accounting principles to contracts and hedging relationships that are affected by LIBOR and other reference rates. The ASU generally allows for hedge accounting to continue if the hedge was highly effective or met other standards prior to reference rate reform. Entities are permitted to apply the amendments to all contracts, cash flow and net investment hedge relationships that exist as of March 12, 2020. The relief provided in this ASU is only available for a limited time, currently through December 31, 2022. The Company’s debt agreements and interest rate swaps that utilize LIBOR have not yet discontinued the use of LIBOR and, therefore, this ASU is not yet effective for us. To the extent our debt and interest rate swap arrangements change to another accepted rate within the timeline provided by this ASU, we will utilize the relief in this ASU to continue hedge accounting. |
Cash and Cash Equivalents | Cash and Cash Equivalents – 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 24, 2022 and September 25, 2021, respectively. At September 24, 2022 demand deposits of approximately $ 262.3 million in five banks exceed the $ 250,000 FDIC insurance limit per bank. |
Short Term Investments | Short Term Investments – From time to time, the Company purchases financial products that can be readily converted into cash and accounts for such financial products as short-term investments. The financial products include money market funds, bonds, and mutual funds. The carrying values of the Company’s short term investments approximate fair value because of their liquidity. |
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 contracts, 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 (expense). 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 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 years to 10 years. Transportation equipment is generally depreciated over three years 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 years to 30 years. Depreciation and amortization expense totaled $ 117.8 million , $ 117.1 million and $ 116.3 million for fiscal years 2022, 2021 and 2020, 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 associates 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 associates 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. The liability to plan participants totaled $ 18.4 million at September 24, 2022 and $ 21.0 million at September 25, 2021. The settlement of this obligation is dependent upon participant elections to withdraw funds, which cannot be predicted. |
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, and for general liability, and $ 475,000 per covered person for medical care benefits for a policy year. 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 $ 32.1 million for employee group insurance, workers’ compensation insurance and general liability insurance at September 24, 2022 and September 25, 2021, respectively. These amounts are inclusive of expected recoveries from excess cost insurance or other sources that are recorded as receivables of $ 4.0 million at September 24, 2022 and $ 4.2 million at September 25, 2021. The Company is required in certain cases to pledge certificates of deposit or obtain surety bonds to support its self-insured status. 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 2018. 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 2022, 2021, and 2020. |
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 $ 20.8 million, $ 18.6 million and $ 15.8 million for fiscal years 2022, 2021 and 2020, 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 $ 15.0 million, $ 16.4 million and $ 15.6 million for fiscal years 2022, 2021 and 2020, 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 49 % 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 composed 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 practical, 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, the use of the retail method for store inventory, 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 $ 110.6 million, $ 116.3 million, and $ 107.5 million for the fiscal years ended September 24, 2022, September 25, 2021 and September 26, 2020, 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 $ 7.1 million, $ 8.1 million, and $ 8.0 million for the fiscal years ended September 24, 2022, September 25, 2021 and September 26, 2020, respectively. During fiscal years 2022, 2021 and 2020, the COVID-19 pandemic increased the Company’s sales. As a result, vendors offered a lower level of incentives for the Company to sell their products. 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. 24, 2022 | |
Income Taxes [Abstract] | |
Schedule Of Deferred Income Tax Liabilities And Assets | 2022 2021 Deferred tax liabilities: Property and equipment tax/book differences $ 82,457,000 $ 88,736,000 Interest rate swaps 4,011,000 — Property tax method 1,450,000 1,051,000 Total deferred tax liabilities 87,918,000 89,787,000 Deferred tax assets: Insurance reserves 4,303,000 5,030,000 Advance payments on purchases contracts 487,000 553,000 Vacation accrual 1,977,000 1,867,000 Inventory 1,571,000 1,368,000 Deferred compensation 4,483,000 5,532,000 Interest rate swaps — 1,107,000 Other 1,519,000 1,562,000 Total deferred tax assets 14,340,000 17,019,000 Net deferred tax liabilities $ 73,578,000 $ 72,768,000 |
Schedule Of Income Tax Expense Reconciliation | 2022 2021 2020 Federal tax at statutory rate $ 75,783,000 $ 68,818,000 $ 49,359,000 State income tax, net of federal tax benefits 12,032,000 10,872,000 7,825,000 Federal tax credits ( 1,500,000 ) ( 1,700,000 ) ( 513,000 ) Other 2,196,000 ( 107,000 ) ( 228,000 ) Total $ 88,511,000 $ 77,883,000 $ 56,443,000 |
Schedule Of Current And Deferred Income Tax Expense (Benefit) | 2022 2021 2020 Current: Federal $ 76,647,000 $ 66,526,000 $ 45,261,000 State 16,173,000 14,129,000 10,445,000 Total current expense 92,820,000 80,655,000 55,706,000 Deferred: Federal ( 3,565,000 ) ( 2,482,000 ) 1,163,000 State ( 744,000 ) ( 290,000 ) ( 426,000 ) Total deferred (benefit) expense ( 4,309,000 ) ( 2,772,000 ) 737,000 Total expense $ 88,511,000 $ 77,883,000 $ 56,443,000 |
Property And Equipment (Tables)
Property And Equipment (Tables) | 12 Months Ended |
Sep. 24, 2022 | |
Property And Equipment [Abstract] | |
Schedule Of Property And Equipment | 2022 2021 Land $ 417,414,333 $ 399,747,689 Construction in progress 38,591,661 37,735,207 Buildings 1,350,593,056 1,304,896,586 Store, office and warehouse equipment 1,045,266,039 1,018,790,068 Transportation equipment 75,163,558 71,032,666 Leasehold improvements 60,958,847 60,986,752 Total 2,987,987,494 2,893,188,968 Less accumulated depreciation and amortization 1,613,956,325 1,522,419,536 Property and equipment - net $ 1,374,031,169 $ 1,370,769,432 |
Property Held For Lease And R_2
Property Held For Lease And Rental Income (Tables) | 12 Months Ended |
Sep. 24, 2022 | |
Property Held For Lease And Rental Income [Abstract] | |
Schedule Of Rental Income | 2022 2021 2020 Rents earned on owned and subleased properties: Base rentals $ 20,091,776 $ 19,146,124 $ 13,881,963 Variable rentals 166,890 271,569 289,831 Total 20,258,666 19,417,693 14,171,794 Depreciation on owned properties leased to others ( 6,318,888 ) ( 5,855,749 ) ( 5,278,540 ) Other shopping center expenses ( 2,968,660 ) ( 3,299,391 ) ( 3,327,278 ) Total $ 10,971,118 $ 10,262,553 $ 5,565,976 |
Schedule Of Owned Properties Under Operating Leases By Major Classes | September 24, September 25, 2022 2021 Land $ 91,607,085 $ 82,896,124 Buildings 241,280,289 217,732,283 Total 332,887,374 300,628,407 Less accumulated depreciation ( 112,986,048 ) ( 103,975,838 ) Total $ 219,901,326 $ 196,652,569 |
Schedule Of Minimum Future Rental Income | Fiscal Year 2023 $ 15,913,457 2024 14,554,813 2025 13,088,508 2026 10,090,779 2027 7,691,671 Thereafter 29,954,629 Total minimum future rental income $ 91,293,857 |
Leases and Rental Expense (Tabl
Leases and Rental Expense (Tables) | 12 Months Ended |
Sep. 24, 2022 | |
Leases and Rental Expense [Abstract] | |
Maturities Of Operating Lease Liabilities | Fiscal Year 2023 $ 9,097,692 2024 6,827,392 2025 6,026,685 2026 4,744,737 2027 3,894,487 Thereafter 21,286,379 Total lease payments 51,877,372 Less amount representing interest 11,284,788 Present value of lease liabilities $ 40,592,584 |
Supplementary Balance Sheet I_2
Supplementary Balance Sheet Information (Tables) | 12 Months Ended |
Sep. 24, 2022 | |
Supplementary Balance Sheet Information [Abstract] | |
Accrued Expenses and Current Portion of Other Long-Term Liabilities | 2022 2021 Property, payroll, and other taxes payable $ 23,306,546 $ 22,621,486 Salaries, wages, and bonuses payable 49,619,593 45,890,517 Self-insurance liabilities: Employee group insurance 4,969,709 5,183,395 Workers’ compensation insurance 4,607,267 4,711,432 General liability insurance 3,543,885 3,424,729 Interest 4,590,254 4,481,104 Other 4,332,648 4,115,904 Total accrued expenses and current portion of other long-term liabilities $ 94,969,902 $ 90,428,567 |
Schedule of Other Long-Term Liabilities | 2022 2021 Advance payments on purchases contracts $ 1,994,459 $ 2,264,784 Nonqualified investment plan liability 18,445,157 22,736,980 Self-insurance liabilities: Workers’ compensation insurance 13,287,189 14,501,624 General liability insurance 4,552,162 4,286,347 Interest rate swap liability — 4,531,140 Other 3,942,604 3,211,513 Other long-term liabilities 42,221,571 51,532,388 Less current portion 742,351 1,113,441 Total other long-term liabilities $ 41,479,220 $ 50,418,947 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Sep. 24, 2022 | |
Long-Term Debt [Abstract] | |
Schedule of Long-Term Debt And Short-Term Loans | 2022 2021 Bonds payable: Senior notes, interest rate of 4.00 %, maturing 2031 $ 350,000,000 $ 350,000,000 Recovery Zone Facility Bonds, maturing 2036 58,970,000 63,500,000 Notes payable due to banks, weighted average interest rate of 2.31 % for 2022 and 1.74 % for 2021 169,021,513 182,859,017 Less unamortized prepaid loan costs ( 6,083,304 ) ( 6,845,074 ) Total long-term debt 571,908,209 589,513,943 Less current portion 17,620,789 17,600,739 Long-term debt, net of current portion $ 554,287,420 $ 571,913,204 |
Schedule Of Redemption Prices Of Senior Notes | Year 2026 102.000 % 2027 101.333 % 2028 100.667 % 2029 and thereafter 100.000 % |
Schedule Of Components Of Interest Costs | 2022 2021 2020 Total interest costs $ 21,848,860 $ 25,463,076 $ 42,204,652 Interest capitalized ( 340,725 ) ( 1,130,933 ) ( 1,675,556 ) Interest expense $ 21,508,135 $ 24,332,143 $ 40,529,096 |
Schedule of Maturities of Long-Term Debt | Fiscal Year 2023 $ 18,371,485 2024 18,375,140 2025 22,281,554 2026 18,280,000 2027 18,280,000 Thereafter 482,403,334 Less unamortized prepaid loan costs ( 6,083,304 ) Total $ 571,908,209 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Sep. 24, 2022 | |
Earnings Per Common Share [Abstract] | |
Reconciliation Of Numerators And Denominators Of Basic And Diluted Earnings Per Share | Year Ended September 24, 2022 Class A Class B Numerator: Allocated net income Net income allocated, basic $ 210,480,738 $ 62,278,190 Conversion of Class B to Class A shares 62,278,190 — Net income allocated, diluted $ 272,758,928 $ 62,278,190 Denominator: Weighted average shares outstanding Weighted average shares outstanding, basic 14,330,809 4,663,567 Conversion of Class B to Class A shares 4,663,567 — Weighted average shares outstanding, diluted 18,994,376 4,663,567 Earnings per share Basic $ 14.69 $ 13.35 Diluted $ 14.36 $ 13.35 Year Ended Year Ended September 25, 2021 September 26, 2020 Class A Class B Class A Class B Numerator: Allocated net income Net income allocated, basic $ 185,964,771 $ 63,766,687 $ 128,634,913 $ 49,966,520 Conversion of Class B to Class A shares 63,766,687 — 49,966,520 — Net income allocated, diluted $ 249,731,458 $ 63,766,687 $ 178,601,433 $ 49,966,520 Denominator: Weighted average shares outstanding Weighted average shares outstanding, basic 14,242,276 5,370,894 14,194,819 6,064,957 Conversion of Class B to Class A shares 5,370,894 — 6,064,957 — Weighted average shares outstanding, diluted 19,613,170 5,370,894 20,259,776 6,064,957 Earnings per share Basic $ 13.06 $ 11.87 $ 9.06 $ 8.24 Diluted $ 12.73 $ 11.87 $ 8.82 $ 8.24 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Sep. 24, 2022 | |
Segment Information [Abstract] | |
Operations By Lines Of Business | 2022 2021 2020 Revenues from unaffiliated customers: Grocery $ 1,940,414 $ 1,762,872 $ 1,693,961 Non-foods 1,204,443 1,136,250 1,066,939 Perishables 1,445,042 1,349,081 1,261,537 Gasoline 885,801 583,749 459,639 Total retail 5,475,700 4,831,952 4,482,076 Other 203,135 155,968 128,533 Total revenues from unaffiliated customers $ 5,678,835 $ 4,987,920 $ 4,610,609 Income before income taxes: Retail $ 353,006 $ 327,563 $ 264,388 Other 23,927 22,495 16,549 Total income from operations 376,933 350,058 280,937 Other income, net 5,845 2,971 1,737 Interest expense 21,508 24,332 40,529 Loss on early extinguishment of debt — 1,083 7,101 Income before income taxes $ 361,270 $ 327,614 $ 235,044 Assets: Retail $ 2,042,730 $ 1,794,160 $ 1,712,203 Other 255,880 226,762 189,607 Elimination of intercompany receivable ( 3,099 ) ( 2,578 ) ( 2,511 ) Total assets $ 2,295,511 $ 2,018,344 $ 1,899,299 Capital expenditures: Retail $ 106,508 $ 138,005 $ 120,605 Other 13,101 2,592 2,162 Total capital expenditures $ 119,609 $ 140,597 $ 122,767 Depreciation and amortization: Retail $ 109,642 $ 108,745 $ 108,588 Other 8,160 8,359 7,694 Total depreciation and amortization $ 117,802 $ 117,104 $ 116,282 |
Fair Values Of Financial Inst_2
Fair Values Of Financial Instruments (Tables) | 12 Months Ended |
Sep. 24, 2022 | |
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 $ 350,000 $ 292,250 Level 2 Facility Bonds 58,970 58,970 Level 2 Secured notes payable and other 162,938 162,935 Level 2 Interest rate swaps derivative contract asset 16,421 16,421 Level 2 Non-qualified retirement plan assets 16,600 16,600 Level 2 |
Cash Flow Information (Tables)
Cash Flow Information (Tables) | 12 Months Ended |
Sep. 24, 2022 | |
Cash Flow Information [Abstract] | |
Supplemental Disclosure Of Cash Flow Information | 2022 2021 2020 Cash paid during the year for: Interest (net of amounts capitalized) $ 21,398,985 $ 26,537,234 $ 47,185,161 Income taxes 87,187,808 77,515,577 63,195,908 Non cash items: Property and equipment additions included in accounts payable 8,724,576 6,920,759 11,626,310 |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Details) | 12 Months Ended | 36 Months Ended | ||
Sep. 24, 2022 USD ($) item segment | Sep. 25, 2021 USD ($) | Sep. 26, 2020 USD ($) | Sep. 24, 2022 USD ($) item | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of locations | item | 198 | |||
Number of operating segments | segment | 1 | |||
Right of use assets | $ 38,594,968 | $ 40,145,098 | $ 38,594,968 | |
Lease obligations | 40,592,584 | $ 40,592,584 | ||
Fiscal Period Duration | 364 days | |||
Outstanding checks in excess of bank balances | 0 | 0 | $ 0 | |
Short-term investments and certificates of deposit | 5,000,000 | |||
Demand deposits | $ 262,300,000 | $ 262,300,000 | ||
Number of banks | item | 5 | 5 | ||
FDIC insurance limit per bank | $ 250,000 | $ 250,000 | ||
Total depreciation expense | 117,800,000 | 117,100,000 | $ 116,300,000 | |
Liability coverage per occurrence for workers compensation | 1,000,000 | 1,000,000 | ||
Liability coverage per covered person for medical care benefits | 475,000 | 475,000 | ||
Company's self insurance reserves | 31,000,000 | 32,100,000 | $ 31,000,000 | |
Expected self-insurance recoveries from excess cost insurance | 4,000,000 | 4,200,000 | ||
Advertising and promotion expenses, net of vendor allowances | 20,800,000 | 18,600,000 | 15,800,000 | |
Depreciation expense included in costs of goods sold totaled | $ 15,000,000 | 16,400,000 | 15,600,000 | |
Fluid dairy revenues recognition | 49% | 49% | ||
Vendor allowances applied as a reduction of merchandise costs | $ 110,600,000 | 116,300,000 | 107,500,000 | |
Vendor advertising allowances recorded as a reduction of advertising expense | 7,100,000 | 8,100,000 | $ 8,000,000 | |
401(k) [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Liability to plan participants | $ 18,400,000 | $ 21,000,000 | $ 18,400,000 | |
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 | 75 | |||
Georgia [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of locations | item | 65 | |||
South Carolina [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of locations | item | 35 | |||
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 | Sep. 24, 2022 | Sep. 25, 2021 |
Income Taxes [Abstract] | ||
Refundable current income taxes | $ 4.2 | $ 2.7 |
Income Taxes (Schedule Of Defer
Income Taxes (Schedule Of Deferred Income Tax Liabilities And Assets) (Details) - USD ($) | Sep. 24, 2022 | Sep. 25, 2021 |
Income Taxes [Abstract] | ||
Property and equipment tax/book differences | $ 82,457,000 | $ 88,736,000 |
Interest rate swaps | 4,011,000 | |
Property tax method | 1,450,000 | 1,051,000 |
Total deferred tax liabilities | 87,918,000 | 89,787,000 |
Insurance reserves | 4,303,000 | 5,030,000 |
Advance payments on purchases contracts | 487,000 | 553,000 |
Vacation accrual | 1,977,000 | 1,867,000 |
Inventory | 1,571,000 | 1,368,000 |
Deferred compensation | 4,483,000 | 5,532,000 |
Interest rate swaps | 1,107,000 | |
Other | 1,519,000 | 1,562,000 |
Total deferred tax assets | 14,340,000 | 17,019,000 |
Net deferred tax liabilities | $ 73,578,000 | $ 72,768,000 |
Income Taxes (Schedule Of Incom
Income Taxes (Schedule Of Income Tax Expense Reconciliation) (Details) - USD ($) | 12 Months Ended | ||
Sep. 24, 2022 | Sep. 25, 2021 | Sep. 26, 2020 | |
Income Taxes [Abstract] | |||
Federal tax at statutory rate | $ 75,783,000 | $ 68,818,000 | $ 49,359,000 |
State income tax, net of federal tax benefits | 12,032,000 | 10,872,000 | 7,825,000 |
Federal tax credits | (1,500,000) | (1,700,000) | (513,000) |
Other | 2,196,000 | (107,000) | (228,000) |
Total expense | $ 88,511,000 | $ 77,883,000 | $ 56,443,000 |
Income Taxes (Schedule Of Curre
Income Taxes (Schedule Of Current And Deferred Income Tax Expense (Benefit)) (Details) - USD ($) | 12 Months Ended | ||
Sep. 24, 2022 | Sep. 25, 2021 | Sep. 26, 2020 | |
Income Taxes [Abstract] | |||
Federal, current | $ 76,647,000 | $ 66,526,000 | $ 45,261,000 |
State, current | 16,173,000 | 14,129,000 | 10,445,000 |
Total current | 92,820,000 | 80,655,000 | 55,706,000 |
Federal, deferred | (3,565,000) | (2,482,000) | 1,163,000 |
State, deferred | (744,000) | (290,000) | (426,000) |
Total deferred | (4,309,000) | (2,772,000) | 737,000 |
Total expense | $ 88,511,000 | $ 77,883,000 | $ 56,443,000 |
Property And Equipment (Schedul
Property And Equipment (Schedule Of Property And Equipment) (Details) - USD ($) | Sep. 24, 2022 | Sep. 25, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 2,987,987,494 | $ 2,893,188,968 |
Less accumulated depreciation and amortization | 1,613,956,325 | 1,522,419,536 |
Property and equipment - net | 1,374,031,169 | 1,370,769,432 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 417,414,333 | 399,747,689 |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 38,591,661 | 37,735,207 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 1,350,593,056 | 1,304,896,586 |
Store, Office And Warehouse Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 1,045,266,039 | 1,018,790,068 |
Transportation Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 75,163,558 | 71,032,666 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 60,958,847 | $ 60,986,752 |
Property Held For Lease And R_3
Property Held For Lease And Rental Income (Narrative) (Details) | 12 Months Ended |
Sep. 24, 2022 item | |
Property Held For Lease And Rental Income [Abstract] | |
Number of shopping centers | 85 |
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. 24, 2022 | Sep. 25, 2021 | Sep. 26, 2020 | |
Property Held For Lease And Rental Income [Abstract] | |||
Base rentals | $ 20,091,776 | $ 19,146,124 | $ 13,881,963 |
Variable rentals | 166,890 | 271,569 | 289,831 |
Total | 20,258,666 | 19,417,693 | 14,171,794 |
Depreciation on owned properties leased to others | (6,318,888) | (5,855,749) | (5,278,540) |
Other shopping center expenses | (2,968,660) | (3,299,391) | (3,327,278) |
Total | $ 10,971,118 | $ 10,262,553 | $ 5,565,976 |
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. 24, 2022 | Sep. 25, 2021 |
Property Subject to or Available for Operating Lease [Line Items] | ||
Owned properties leased or held for lease to others under operating leases | $ 332,887,374 | $ 300,628,407 |
Less accumulated depreciation | (112,986,048) | (103,975,838) |
Total | 219,901,326 | 196,652,569 |
Land [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Owned properties leased or held for lease to others under operating leases | 91,607,085 | 82,896,124 |
Buildings [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Owned properties leased or held for lease to others under operating leases | $ 241,280,289 | $ 217,732,283 |
Property Held for Lease and R_6
Property Held for Lease and Rental Income (Schedule Of Minimum Future Rental Income On Non-cancelable Operating Leases) (Details) | Sep. 24, 2022 USD ($) |
Property Held For Lease And Rental Income [Abstract] | |
2023 | $ 15,913,457 |
2024 | 14,554,813 |
2025 | 13,088,508 |
2026 | 10,090,779 |
2027 | 7,691,671 |
Thereafter | 29,954,629 |
Total minimum future rental income | $ 91,293,857 |
Leases And Rental Expense (Narr
Leases And Rental Expense (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 24, 2022 | Sep. 25, 2021 | Sep. 26, 2020 | |
Leases and Rental Expense [Abstract] | |||
Initial terms of leases | 20 years | ||
Rent expense for all operating leases | $ 10.9 | $ 11.1 | $ 11.1 |
Operating sub-lease rental income | 0.3 | $ 0.3 | $ 0.3 |
Lease extension exercised, increase in operating lease assets and liabilities | $ 7.9 | ||
Weighted average remaining lease term | 13 years 4 months 24 days | ||
Weighted average discount rate | 3.51% |
Leases And Rental Expense (Matu
Leases And Rental Expense (Maturities Of Operating Lease Liabilities) (Details) | Sep. 24, 2022 USD ($) |
Leases and Rental Expense [Abstract] | |
2023 | $ 9,097,692 |
2024 | 6,827,392 |
2025 | 6,026,685 |
2026 | 4,744,737 |
2027 | 3,894,487 |
Thereafter | 21,286,379 |
Total lease payments | 51,877,372 |
Less amount representing interest | 11,284,788 |
Present value of lease liabilities | $ 40,592,584 |
Supplementary Balance Sheet I_3
Supplementary Balance Sheet Information (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 24, 2022 | Sep. 25, 2021 | Sep. 26, 2020 | |
Supplementary Balance Sheet Information [Abstract] | |||
Employee insurance expense | $ 37 | $ 35.5 | $ 38.5 |
Supplementary Balance Sheet I_4
Supplementary Balance Sheet Information (Accrued Expenses And Current Portion Of Other Long-Term Liabilities) (Details) - USD ($) | Sep. 24, 2022 | Sep. 25, 2021 |
Supplementary Balance Sheet Information [Line Items] | ||
Property, payroll, and other taxes payable | $ 23,306,546 | $ 22,621,486 |
Salaries, wages and bonuses payable | 49,619,593 | 45,890,517 |
Interest | 4,590,254 | 4,481,104 |
Other | 4,332,648 | 4,115,904 |
Total | 94,969,902 | 90,428,567 |
Employee Group Insurance [Member] | ||
Supplementary Balance Sheet Information [Line Items] | ||
Self-insurance liabilities | 4,969,709 | 5,183,395 |
Workers' Compensation Insurance [Member] | ||
Supplementary Balance Sheet Information [Line Items] | ||
Self-insurance liabilities | 4,607,267 | 4,711,432 |
General Liability [Member] | ||
Supplementary Balance Sheet Information [Line Items] | ||
Self-insurance liabilities | $ 3,543,885 | $ 3,424,729 |
Supplementary Balance Sheet I_5
Supplementary Balance Sheet Information (Schedule Of Other Long-Term Liabilities) (Details) - USD ($) | Sep. 24, 2022 | Sep. 25, 2021 |
Supplementary Balance Sheet Information [Line Items] | ||
Advance payments on purchases contracts | $ 1,994,459 | $ 2,264,784 |
Nonqualified investment plan liability | 18,445,157 | 22,736,980 |
Interest rate swap liability | 4,531,140 | |
Other | 3,942,604 | 3,211,513 |
Other long-term liabilities | 42,221,571 | 51,532,388 |
Less current portion | 742,351 | 1,113,441 |
Total other long-term liabilities | 41,479,220 | 50,418,947 |
Workers' Compensation Insurance [Member] | ||
Supplementary Balance Sheet Information [Line Items] | ||
Self-insurance liabilities | 13,287,189 | 14,501,624 |
General Liability [Member] | ||
Supplementary Balance Sheet Information [Line Items] | ||
Self-insurance liabilities | $ 4,552,162 | $ 4,286,347 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Nov. 30, 2019 | Jun. 30, 2021 | Jul. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2010 | Jun. 26, 2021 | Sep. 26, 2020 | Dec. 28, 2019 | Sep. 24, 2022 | Sep. 25, 2021 | Sep. 26, 2020 | Jun. 20, 2020 | Dec. 31, 2019 | Sep. 30, 2017 | |
Debt Instrument [Line Items] | ||||||||||||||
Current portion of long-term debt | $ 17,620,789 | $ 17,600,739 | ||||||||||||
Short term investments | 5,000,000 | |||||||||||||
Loss on early extinguishment of debt | (1,082,633) | $ (7,101,153) | ||||||||||||
Payment of debt extinguishment costs | 5,366,350 | |||||||||||||
OTHER LONG-TERM LIABILITIES | 41,479,220 | 50,418,947 | ||||||||||||
Property and equipment with undepreciated cost pledge as collateral for long term debt | 269,000,000 | |||||||||||||
Line of credit payable [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of credit facility borrowing capacity | $ 150,000,000 | |||||||||||||
Borrowings outstanding | 0 | |||||||||||||
Letter of Credit [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of credit facility borrowing capacity | 10,000,000 | |||||||||||||
Borrowings outstanding | 0 | |||||||||||||
Cash Flow Hedging [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
OTHER LONG-TERM LIABILITIES | 16,400,000 | |||||||||||||
Unrealized gains (losses) on cash flow hedge | 4,500,000 | |||||||||||||
Other comprehensive income, net of income taxes | 15,800,000 | $ 6,800,000 | ||||||||||||
Interest Rate Swaps Derivative Contract Asset [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Derivative notional amount | $ 30,500,000 | |||||||||||||
Derivative, fixed interest rate | 3.92% | |||||||||||||
Derivative maturity date | Oct. 01, 2027 | |||||||||||||
Monthly principal amortization | $ 500,000 | |||||||||||||
Interest Rate Swaps Derivative Contract Asset [Member] | One-Month LIBOR [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument variable interest rate | 1.65% | |||||||||||||
Interest Rate Swap at Fixed Rate of 2.95% [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Derivative notional amount | $ 132,400,000 | |||||||||||||
Derivative, fixed interest rate | 2.95% | |||||||||||||
Monthly principal amortization | $ 650,000 | |||||||||||||
Interest Rate Swap at Fixed Rate of 2.95% [Member] | One-Month LIBOR [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument variable interest rate | 1.50% | |||||||||||||
Senior Notes, Interest Rate of 5.75%, Maturing 2023 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument stated interest rate | 5.75% | |||||||||||||
Debt maturity date | Dec. 31, 2023 | |||||||||||||
Debt instrument outstanding amount | $ 295,000,000 | $ 295,000,000 | ||||||||||||
Senior Notes, Interest Rate of 5.75%, Maturing 2023 [Member] | Notes Redeemed on July 9, 2020 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Loss on early extinguishment of debt | 2,000,000 | |||||||||||||
Debt instrument, redemption price as percentage of principal amount | 100.958% | |||||||||||||
Debt redeemed amount | $ 150,000,000 | |||||||||||||
Senior Notes, Interest Rate of 5.75%, Maturing 2023 [Member] | Notes Redeemed on August 27, 2020 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Loss on early extinguishment of debt | $ 1,400,000 | |||||||||||||
Debt instrument, redemption price as percentage of principal amount | 100.958% | |||||||||||||
Debt redeemed amount | $ 100,000,000 | |||||||||||||
Senior Notes, Interest Rate of 5.75%, Maturing 2023 [Member] | Notes Redeemed on June 26, 2021 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Loss on early extinguishment of debt | $ 1,100,000 | |||||||||||||
Debt redeemed amount | 295,000,000 | |||||||||||||
Senior Notes, Interest Rate of 4.00%, Maturing 2031 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument principal amount | $ 350,000,000 | |||||||||||||
Debt instrument stated interest rate | 4% | 4% | ||||||||||||
Senior Notes, Interest Rate of 4.00%, Maturing 2031 [Member] | Invested in Short Term Investments Pending Redemption Of 2023 Notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Proceeds from issuance of long term debt | $ 295,000,000 | |||||||||||||
Senior Notes, Interest Rate of 4.00%, Maturing 2031 [Member] | May Redeem Prior To June 15, 2026 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, redemption price as percentage of principal amount | 100% | |||||||||||||
Senior Notes, Interest Rate of 4.00%, Maturing 2031 [Member] | May Redeem Prior To June 15, 2024 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, redemption price as percentage of principal amount | 104% | |||||||||||||
Debt instrument redemption percentage | 40% | |||||||||||||
Debt instrument redemption percentage outstanding | 60% | |||||||||||||
Secured Debt Maturing January 2030 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument principal amount | $ 155,000,000 | |||||||||||||
Secured Debt Maturing October 2027 [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Secured borrowing | $ 60,000,000 | |||||||||||||
Recovery Zone Facility Bonds [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument principal amount | $ 99,700,000 | |||||||||||||
Debt maturity date | Jan. 01, 2036 | |||||||||||||
Annual amount of redemption of bonds | $ 4,500,000 | |||||||||||||
Loan [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument principal amount | $ 155,000,000 | |||||||||||||
Loss on early extinguishment of debt | $ 3,700,000 | |||||||||||||
Loan redemption period after redemption notice | 30 days | |||||||||||||
Debt instrument, redemption price as percentage of principal amount | 101.917% |
Long-Term Debt (Schedule Of Lon
Long-Term Debt (Schedule Of Long-Term Debt And Short-Term Loans) (Details) - USD ($) | Sep. 24, 2022 | Sep. 25, 2021 | Jun. 30, 2021 | Jun. 20, 2020 |
Debt Instrument [Line Items] | ||||
Less unamortized prepaid loan costs | $ (6,083,304) | $ (6,845,074) | ||
Total long-term debt | 571,908,209 | 589,513,943 | ||
Less current portion | 17,620,789 | 17,600,739 | ||
Long-term debt, net of current portion | 554,287,420 | 571,913,204 | ||
Senior Notes, Interest Rate of 5.75%, Maturing 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 5.75% | |||
Senior Notes, Interest Rate of 4.00%, Maturing 2031 [Member] | ||||
Debt Instrument [Line Items] | ||||
Bonds payable | $ 350,000,000 | 350,000,000 | ||
Interest rate | 4% | 4% | ||
Recovery Zone Facility Bonds [Member] | ||||
Debt Instrument [Line Items] | ||||
Bonds payable | $ 58,970,000 | 63,500,000 | ||
Notes payable due to banks, weighted average interest rate of 2.31% for 2022 and 1.74% for 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes payable | $ 169,021,513 | $ 182,859,017 | ||
Weighted average interest rate | 2.31% | 1.74% |
Long-Term Debt (Schedule Of Red
Long-Term Debt (Schedule Of Redemption Prices Of Senior Notes) (Details) | 12 Months Ended |
Sep. 24, 2022 | |
2026 [Member] | |
Debt instrument, redemption price as percentage of principal amount | 102% |
2027 [Member] | |
Debt instrument, redemption price as percentage of principal amount | 101.333% |
2028 [Member] | |
Debt instrument, redemption price as percentage of principal amount | 100.667% |
2029 and thereafter [Member] | |
Debt instrument, redemption price as percentage of principal amount | 100% |
Long-Term Debt (Schedule Of Com
Long-Term Debt (Schedule Of Components Of Interest Costs) (Details) - USD ($) | 12 Months Ended | ||
Sep. 24, 2022 | Sep. 25, 2021 | Sep. 26, 2020 | |
Long-Term Debt [Abstract] | |||
Total interest costs | $ 21,848,860 | $ 25,463,076 | $ 42,204,652 |
Interest capitalized | (340,725) | (1,130,933) | (1,675,556) |
Interest expense | $ 21,508,135 | $ 24,332,143 | $ 40,529,096 |
Long-Term Debt (Schedule Of Mat
Long-Term Debt (Schedule Of Maturities Of Long-Term Debt) (Details) - USD ($) | Sep. 24, 2022 | Sep. 25, 2021 |
Long-Term Debt [Abstract] | ||
2022 | $ 18,371,485 | |
2023 | 18,375,140 | |
2024 | 22,281,554 | |
2025 | 18,280,000 | |
2026 | 18,280,000 | |
Thereafter | 482,403,334 | |
Less unamortized prepaid loan costs | (6,083,304) | $ (6,845,074) |
Total long-term debt | $ 571,908,209 | $ 589,513,943 |
Stockholder's Equity (Narrative
Stockholder's Equity (Narrative) (Details) | 12 Months Ended |
Sep. 24, 2022 item | |
Class of Stock [Line Items] | |
Number of classes of common stock | 2 |
Percentage of cash dividend or liquidation payment based on Class B common stock | 110% |
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% |
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 ($) | 12 Months Ended | ||
Sep. 24, 2022 | Sep. 25, 2021 | Sep. 26, 2020 | |
Class A Common Stock [Member] | |||
Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share [Line Items] | |||
Net income allocated, basic | $ 210,480,738 | $ 185,964,771 | $ 128,634,913 |
Conversion of Class B to Class A shares | 62,278,190 | 63,766,687 | 49,966,520 |
Net income allocated, diluted | $ 272,758,928 | $ 249,731,458 | $ 178,601,433 |
Weighted average shares outstanding, basic | 14,330,809 | 14,242,276 | 14,194,819 |
Conversion of Class B to Class A shares | 4,663,567 | 5,370,894 | 6,064,957 |
Weighted average shares outstanding, diluted | 18,994,376 | 19,613,170 | 20,259,776 |
Earnings per share, Basic | $ 14.69 | $ 13.06 | $ 9.06 |
Earnings per share, Diluted | $ 14.36 | $ 12.73 | $ 8.82 |
Class B Common Stock [Member] | |||
Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share [Line Items] | |||
Net income allocated, basic | $ 62,278,190 | $ 63,766,687 | $ 49,966,520 |
Net income allocated, diluted | $ 62,278,190 | $ 63,766,687 | $ 49,966,520 |
Weighted average shares outstanding, basic | 4,663,567 | 5,370,894 | 6,064,957 |
Weighted average shares outstanding, diluted | 4,663,567 | 5,370,894 | 6,064,957 |
Earnings per share, Basic | $ 13.35 | $ 11.87 | $ 8.24 |
Earnings per share, Diluted | $ 13.35 | $ 11.87 | $ 8.24 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 24, 2022 | Sep. 25, 2021 | Sep. 26, 2020 | |
Postemployment and Postretirement Benefit Plans [Line Items] | |||
Accrued liability for cash bonuses | $ 26,000 | $ 22,000 | |
Investment Profit Sharing Plan [Member] | |||
Postemployment and Postretirement Benefit Plans [Line Items] | |||
Operating and administrative expenses | 5,000 | 5,100 | $ 4,200 |
Nonqualified Investment Plan [Member] | |||
Postemployment and Postretirement Benefit Plans [Line Items] | |||
Operating and administrative expenses | 440 | 375 | 294 |
Cash Bonuses [Member] | |||
Postemployment and Postretirement Benefit Plans [Line Items] | |||
Operating and administrative expenses | $ 32,300 | $ 27,200 | $ 35,900 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Sep. 24, 2022 USD ($) segment | Sep. 25, 2021 USD ($) | Sep. 26, 2020 USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | segment | 1 | ||
Fluid dairy [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales eliminated in consolidation | $ | $ 51.4 | $ 46.5 | $ 47 |
Segment Information (Operations
Segment Information (Operations By Lines Of Business) (Details) - USD ($) | 12 Months Ended | ||
Sep. 24, 2022 | Sep. 25, 2021 | Sep. 26, 2020 | |
Segment Reporting Information By Segment [Line Items] | |||
Total revenues from unaffiliated customers | $ 5,678,835,032 | $ 4,987,919,603 | $ 4,610,609,025 |
Total income from operations | 376,932,584 | 350,057,605 | 280,937,086 |
Other income, net | 5,845,479 | 2,971,629 | 1,737,596 |
Interest expense | 21,508,135 | 24,332,143 | 40,529,096 |
Loss on early extinguishment of debt | 1,082,633 | 7,101,153 | |
Income before income taxes | 361,269,928 | 327,614,458 | 235,044,433 |
Total assets | 2,295,510,725 | 2,018,343,955 | 1,899,299,000 |
Total capital expenditures | 119,608,974 | 140,597,162 | 122,767,178 |
Total depreciation and amortization | 117,801,654 | 117,103,658 | 116,282,239 |
Elimination of intercompany receivable [Member] | |||
Segment Reporting Information By Segment [Line Items] | |||
Total assets | (3,099,000) | (2,578,000) | (2,511,000) |
Grocery [Member] | |||
Segment Reporting Information By Segment [Line Items] | |||
Total revenues from unaffiliated customers | 1,940,414,000 | 1,762,872,000 | 1,693,961,000 |
Non-foods [Member] | |||
Segment Reporting Information By Segment [Line Items] | |||
Total revenues from unaffiliated customers | 1,204,443,000 | 1,136,250,000 | 1,066,939,000 |
Perishables [Member] | |||
Segment Reporting Information By Segment [Line Items] | |||
Total revenues from unaffiliated customers | 1,445,042,000 | 1,349,081,000 | 1,261,537,000 |
Gasoline [Member] | |||
Segment Reporting Information By Segment [Line Items] | |||
Total revenues from unaffiliated customers | 885,801,000 | 583,749,000 | 459,639,000 |
Retail Segment [Member] | |||
Segment Reporting Information By Segment [Line Items] | |||
Total revenues from unaffiliated customers | 5,475,700,000 | 4,831,952,000 | 4,482,076,000 |
Total income from operations | 353,006,000 | 327,563,000 | 264,388,000 |
Total assets | 2,042,730,000 | 1,794,160,000 | 1,712,203,000 |
Total capital expenditures | 106,508,000 | 138,005,000 | 120,605,000 |
Total depreciation and amortization | 109,642,000 | 108,745,000 | 108,588,000 |
Other Segment [Member] | |||
Segment Reporting Information By Segment [Line Items] | |||
Total revenues from unaffiliated customers | 203,135,000 | 155,968,000 | 128,533,000 |
Total income from operations | 23,927,000 | 22,495,000 | 16,549,000 |
Total assets | 255,880,000 | 226,762,000 | 189,607,000 |
Total capital expenditures | 13,101,000 | 2,592,000 | 2,162,000 |
Total depreciation and amortization | $ 8,160,000 | $ 8,359,000 | $ 7,694,000 |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) $ in Millions | 12 Months Ended |
Sep. 24, 2022 USD ($) | |
Commitments And Contingencies [Abstract] | |
Construction commitments | $ 6.5 |
Supply contracts to provide fuel sold in its fuel centers, percent | 84% |
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 Assets) (Details) - Level 2 [Member] $ in Thousands | Sep. 24, 2022 USD ($) |
Carrying Amount [Member] | Non-qualified retirement plan [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Debt | $ 16,600 |
Carrying Amount [Member] | Interest Rate Swaps Derivative Contract Asset [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Debt | 16,421 |
Fair Value [Member] | Non-qualified retirement plan [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Debt | 16,600 |
Fair Value [Member] | Interest Rate Swaps Derivative Contract Asset [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Debt | 16,421 |
Senior Notes [Member] | Carrying Amount [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Debt | 350,000 |
Senior Notes [Member] | Fair Value [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Debt | 292,250 |
Facility Bonds [Member] | Carrying Amount [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Debt | 58,970 |
Facility Bonds [Member] | Fair Value [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Debt | 58,970 |
Secured Notes Payable And Other [Member] | Carrying Amount [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Debt | 162,938 |
Secured Notes Payable And Other [Member] | Fair Value [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Debt | $ 162,935 |
Cash Flow Information (Suppleme
Cash Flow Information (Supplemental Disclosure Of Cash Flow Information) (Details) - USD ($) | 12 Months Ended | ||
Sep. 24, 2022 | Sep. 25, 2021 | Sep. 26, 2020 | |
Cash paid during the year for: | |||
Interest (net of amounts capitalized) | $ 21,398,985 | $ 26,537,234 | $ 47,185,161 |
Income taxes | 87,187,808 | 77,515,577 | 63,195,908 |
Non cash items: | |||
Property and equipment additions included in accounts payable | $ 8,724,576 | $ 6,920,759 | $ 11,626,310 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) | 1 Months Ended | ||
Aug. 31, 2022 | Sep. 25, 2021 | Sep. 26, 2020 | |
Equity, Class of Treasury Stock [Line Items] | |||
Short-term non-interest bearing loans outstanding to investment/profit sharing plan | $ 0 | $ 0 | |
Robert P. Ingle II, Chairman of Board [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Proceeds from sale of land parcel | $ 725,000 |