Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 23, 2017 | Oct. 20, 2017 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | MONRO, INC. | |
Entity Central Index Key | 876,427 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 23, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock Shares Outstanding | 32,772,061 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 23, 2017 | Mar. 25, 2017 |
Current assets: | ||
Cash and equivalents | $ 6,368 | $ 8,995 |
Trade receivables | 12,699 | 11,465 |
Federal and state income taxes receivable | 147 | 3,527 |
Inventories | 147,106 | 142,604 |
Other current assets | 37,755 | 32,639 |
Total current assets | 204,075 | 199,230 |
Property, plant and equipment | 739,711 | 712,999 |
Less - Accumulated depreciation and amortization | (334,725) | (318,365) |
Net property, plant and equipment | 404,986 | 394,634 |
Goodwill | 515,772 | 501,736 |
Intangible assets | 51,588 | 54,288 |
Other non-current assets | 11,212 | 11,331 |
Long-term deferred income tax assets | 21,605 | 24,045 |
Total assets | 1,209,238 | 1,185,264 |
Current liabilities: | ||
Current portion of long-term debt, capital leases and financing obligations | 16,643 | 15,298 |
Trade payables | 92,939 | 79,492 |
Accrued payroll, payroll taxes and other payroll benefits | 24,629 | 24,979 |
Accrued insurance | 38,400 | 35,325 |
Warranty reserves | 11,418 | 10,843 |
Other current liabilities | 19,300 | 19,956 |
Total current liabilities | 203,329 | 185,893 |
Long-term debt | 153,030 | 182,337 |
Long-term capital leases and financing obligations | 222,890 | 213,166 |
Accrued rent expense | 4,575 | 5,037 |
Other long-term liabilities | 14,876 | 15,137 |
Long-term income taxes payable | 2,863 | 2,440 |
Total liabilities | 601,563 | 604,010 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Class C Convertible Preferred Stock, $1.50 par value, $.064 conversion value; 150,000 shares authorized; 21,802 shares issued and outstanding | 33 | 33 |
Common Stock, $.01 par value, 65,000,000 shares authorized; 39,101,291 and 39,012,189 shares issued at September 23, 2017 and March 25, 2017, respectively | 391 | 390 |
Treasury Stock, 6,330,008 and 6,322,417 shares at September 23, 2017 and March 25, 2017, respectively, at cost | (106,563) | (106,212) |
Additional paid-in capital | 195,554 | 191,553 |
Accumulated other comprehensive loss | (3,261) | (3,161) |
Retained earnings | 521,521 | 498,651 |
Total shareholders' equity | 607,675 | 581,254 |
Total liabilities and shareholders' equity | $ 1,209,238 | $ 1,185,264 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 23, 2017 | Mar. 25, 2017 |
Consolidated Balance Sheets [Abstract] | ||
Class C convertible preferred stock par value | $ 1.50 | $ 1.50 |
Class C convertible preferred stock, conversion value | $ 0.064 | $ 0.064 |
Class C convertible preferred stock shares authorized | 150,000 | 150,000 |
Class C convertible preferred stock shares issued | 21,802 | 21,802 |
Class C convertible preferred stock shares outstanding | 21,802 | 21,802 |
Common stock par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 65,000,000 | 65,000,000 |
Common stock shares issued | 39,101,291 | 39,012,189 |
Treasury stock shares | 6,330,008 | 6,322,417 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 23, 2017 | Sep. 24, 2016 | Sep. 23, 2017 | Sep. 24, 2016 | |
Consolidated Statements Of Comprehensive Income [Abstract] | ||||
Sales | $ 278,017 | $ 245,927 | $ 556,507 | $ 481,217 |
Cost of sales, including distribution and occupancy costs | 170,076 | 145,930 | 335,682 | 283,152 |
Gross profit | 107,941 | 99,997 | 220,825 | 198,065 |
Operating, selling, general and administrative expenses | 74,120 | 68,072 | 153,256 | 134,846 |
Operating income | 33,821 | 31,925 | 67,569 | 63,219 |
Interest expense, net of interest income | 6,117 | 4,488 | 11,859 | 8,972 |
Other income, net | (226) | (126) | (238) | (280) |
Income before provision for income taxes | 27,930 | 27,563 | 55,948 | 54,527 |
Provision for income taxes | 10,663 | 10,019 | 21,096 | 20,228 |
Net income | 17,267 | 17,544 | 34,852 | 34,299 |
Other comprehensive loss, net of tax: | ||||
Changes in pension, net of tax benefit | (50) | (47) | (100) | (128) |
Comprehensive income | $ 17,217 | $ 17,497 | $ 34,752 | $ 34,171 |
Earnings per common share: | ||||
Basic | $ 0.52 | $ 0.54 | $ 1.06 | $ 1.05 |
Diluted | $ 0.52 | $ 0.53 | $ 1.05 | $ 1.03 |
Consolidated Statement Of Chang
Consolidated Statement Of Changes in Shareholders' Equity - 6 months ended Sep. 23, 2017 - USD ($) $ in Thousands | Class C Convertible Preferred Stock [Member] | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] | Total | |
Balance beginning at Mar. 25, 2017 | $ 33 | $ 390 | $ (106,212) | $ 191,553 | $ (3,161) | $ 498,651 | $ 581,254 | |
Beginning balance, preferred shares at Mar. 25, 2017 | 21,802 | 21,802 | ||||||
Beginning balance, common shares at Mar. 25, 2017 | 39,012,000 | 6,322,000 | ||||||
Net income | 34,852 | $ 34,852 | ||||||
Other comprehensive loss: | ||||||||
Pension liability adjustment ($160) pre-tax | (100) | (100) | ||||||
Cash Dividends: | ||||||||
Preferred dividends | [1] | (184) | (184) | |||||
Common dividends | [1] | (11,798) | (11,798) | |||||
Exercise of stock options | $ 1 | $ (351) | 2,799 | 2,449 | ||||
Exercise of stock options, shares | 89,000 | 8,000 | ||||||
Stock-based compensation | 1,202 | 1,202 | ||||||
Balance ending at Sep. 23, 2017 | $ 33 | $ 391 | $ (106,563) | $ 195,554 | $ (3,261) | $ 521,521 | $ 607,675 | |
Ending balance, preferred shares at Sep. 23, 2017 | 21,802 | 21,802 | ||||||
Ending balance, common shares at Sep. 23, 2017 | 39,101,000 | 6,330,000 | ||||||
[1] | Represents first and second quarter fiscal year 2018 dividends of $.18 per common share or common share equivalent each quarter, declared on May 18, 2017 and August 15, 2017, respectively. |
Consolidated Statement Of Chan6
Consolidated Statement Of Changes in Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Sep. 23, 2017 | Jun. 24, 2017 | Sep. 23, 2017 | |
Consolidated Statement of Changes in Shareholders' Equity [Abstract] | |||
Common stock cash dividends per share | $ 0.18 | $ 0.18 | |
Pension liability adjustment - pre-tax | $ (160) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 23, 2017 | Sep. 24, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 34,852 | $ 34,299 |
Adjustments to reconcile net income to net cash provided by operating activities - | ||
Depreciation and amortization | 23,979 | 21,545 |
Gain on bargain purchase | (13) | |
(Gain) loss on disposal of assets | (1,442) | 403 |
Stock-based compensation expense | 1,202 | 1,972 |
Net change in deferred income taxes | 4,320 | 4,047 |
Change in operating assets and liabilities (excluding acquisitions): | ||
Trade receivables | (1,196) | (443) |
Inventories | (3,985) | 1,713 |
Other current assets | (4,171) | (6,275) |
Other non-current assets | 1,116 | 2,649 |
Trade payables | 13,447 | 6,269 |
Accrued expenses | 3,730 | 2,091 |
Federal and state income taxes payable | 3,380 | 382 |
Other long-term liabilities | (558) | (1,005) |
Long-term income taxes payable | 423 | 499 |
Total adjustments | 40,232 | 33,847 |
Net cash provided by operating activities | 75,084 | 68,146 |
Cash flows from investing activities: | ||
Capital expenditures | (18,899) | (18,111) |
Acquisitions, net of cash acquired | (14,468) | (129,473) |
Proceeds from the disposal of assets | 1,986 | 87 |
Net cash used for investing activities | (31,381) | (147,497) |
Cash flows from financing activities: | ||
Proceeds from borrowings | 170,142 | 300,435 |
Principal payments on long-term debt, capital leases and financing obligations | (206,948) | (212,531) |
Exercise of stock options | 2,449 | 1,924 |
Dividends paid | (11,973) | (11,236) |
Net cash (used for) provided by financing activities | (46,330) | 78,592 |
Decrease in cash | (2,627) | (759) |
Cash at beginning of period | 8,995 | 7,985 |
Cash at end of period | $ 6,368 | $ 7,226 |
Condensed Consolidated Financia
Condensed Consolidated Financial Statements | 6 Months Ended |
Sep. 23, 2017 | |
Condensed Consolidated Financial Statements [Abstract] | |
Condensed Consolidated Financial Statements | N ote 1 – Condensed Consolidated Financial Statements The consolidated balance sheets as of September 23, 2017 and March 25, 2017, the consolidated statements of comprehensive income for the quarters and six months ended September 23, 2017 and September 24, 2016, the consolidated statement of changes in shareholders’ equity for the six months ended September 23, 2017, and the consolidated statements of cash flows for the six months ended September 23, 2017 and September 24, 2016, include financial information for Monro, Inc., formerly Monro Muffler Brake, Inc. , and its wholly-owned subsidiaries, Monro Service Corporation and Car-X, LLC (collectively, “Monro”, “we”, “us”, “our” and the “Company” ). These unaudited, condensed consolidated financial statements have been prepared by Monro. We believe all known adjustments (consisting of normal recurring accruals or adjustments) have been made to fairly state the financial position, results of operations and cash flows for the unaudited periods presented. Interim results are not necessarily indicative of results for a full year. The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) . The information included in this Form 10-Q should be read in conjunction with the audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended March 25, 2017. We report our results on a 52 / 53 week fiscal year with the fiscal year ending on the last Saturday in March of each year. The following are the dates represented by each fiscal period reported in these condensed financial statements: “Quarter Ended Fiscal September 2017” June 25, 2017 – September 23, 2017 (13 weeks) “Quarter Ended Fiscal September 2016” June 26, 2016 – September 24, 2016 (13 weeks) “Six Months Ended Fiscal September 2017” March 26, 2017 – September 23, 2017 (26 weeks) “Six Months Ended Fiscal September 2016” March 27, 2016 – September 24, 2016 (26 weeks) Fiscal year 2018, ending March 31, 2018, is a 53 week year. Monro’s operations are organized and managed in one operating segment. The internal management financial reporting that is the basis for evaluation in order to assess performance and allocate resources by our chief operating decision maker consists of consolidated data that includes the results of our retail, commercial and wholesale locations. As such, our one operating segment reflects how our operations are managed, how resources are allocated, how operating performance is evaluated by senior management and the structure of our internal financial reporting. Revisions We have evaluated the principal vs. agent accounting guidance in assessing the appropriate presentation for certain transactions primarily related to our fiscal 2017 acquisitions. We have determined agent accounting is appropriate for such transactions and therefore concluded that amounts previously presented on a gross basis should have been recorded on a net basis. Accordingly, we have revised amounts previously recorded in connection with these transactions during the first and second quarters of fiscal 2017 . The revisions resulted in a reduction of sales and cost of sales by equal amounts of $1.6 million and $2.7 million for the first and second quarters of fiscal 2017 , respectively, and did not impact gross profit as previously reported. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance for the reporting of revenue from contracts with customers. This guidance provides guidelines a company will apply to determine the measurement of revenue and timing of when it is recognized. Additional guidance has subsequently been issued to amend or clarify the reporting of revenue from contracts with customers. The guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017. Early adoption is permitted, but not before the original effective date of December 15, 2016. While the evaluation of the impact of the new revenue recognition guidance on our Consolidated Financial Statements has not yet been fully determined, we anticipate the provisions to primarily impact the deferral of revenue generated by the sale of an extended warranty. We are required to adopt this guidance utilizing one of two methods: retrospective restatement for each reporting period presented at time of adoption, or a modified retrospective approach with the cumulative effect of initially applying this guidance recognized at the date of initial application. We intend to elect an adoption methodology in the first quarter of fiscal 2019, after we have fully evaluated the impact on our Consolidated Financial Statements , and we expect to adopt the modified retrospective method. Under this method, we would recognize the cumulative effect of the changes in retained earnings at the date of adoption, but would not restate prior periods. In addition, we expect adoption to lead to increased footnote disclosures . In February 2016, the FASB issued new accounting guidance related to leases. This guidance establishes a right of use (“ROU”) model that requires a lessee to record a ROU asset and lease liability on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. Early adoption is permitted. Approximately 50% of our store leases and all of our land leases are currently not recorded on our balance sheet. Recording ROU assets and liabilities for these leases is expected to have a material impact on our Consolidated Balance Sheet. We are currently evaluating the impact that recording ROU assets and liabilities will have on our Consolidated Statement of Comprehensive Income and the financial statement impact , if material, that the standard will have on leases which are currently recorded on our Consolidated Balance Sheet. In March 2016, the FASB issued new accounting guidance intended to simplify various aspects related to accounting for share-based payments and their presentation in the financial statements. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2016. We have adopted this guidance during the first quarter of fiscal 2018. Amendments to this guidance related to accounting for excess tax benefits and tax deficiencies have been adopted prospectively and had an immaterial impact on the Consolidated Statement of Comprehensive Income for the six months ended September 23, 2017. Excess tax benefits related to share-based payments are now included in operating cash flows rather than financing cash flows. This change has been applied prospectively in accordance with the guidance and prior periods have not been adjusted. We have previously classified cash paid for tax withholding purposes as a financing activity in the statement of cash flows. Therefore, there is no change related to this requirement. The amendments allow for a one-time accounting policy election to either account for forfeitures as they occur or continue to estimate forfeitures as required by current guidance. We have elected to continue estimating forfeitures through applying a forfeiture rate. In August 2016, the FASB issued new accounting guidance related to cash flow classification. This guidance clarifies and provides specific guidance on eight cash flow classification issues that are not addressed by current GAAP and thereby reduce the current diversity in practice. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017. Early adoption is permitted. We are currently evaluating the potential impact of the adoption of this guidance on our Consolidated Financial Statements. In January 2017, the FASB issued new accounting guidance which clarifies the definition of a business, particularly when evaluating whether transactions should be accounted for as acquisitions or dispositions of assets or businesses. This guidance provides a screen to determine when a set of assets and activities (collectively referred to as a “set”) is not a business. This screen requires that when substantially all of the fair value of the assets is concentrated in a single identifiable asset or group of similar identifiable assets, the set is not a business. If the screen is not met, the guidance provides a framework to evaluate whether both an input and a substantive process are present to be considered a business. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017. Early adoption is permitted for certain transactions. We are currently evaluating the potential impact of the adoption of this guidance on our Consolidated Financial Statements. In January 2017, the FASB issued new accounting guidance simplifying the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test, which required the determination of an implied fair value of goodwill. Under this guidance, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. This guidance is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and should be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. This guid ance is not expected to have a material impact on our Consolidated Financial Statements. In March 2017, the FASB issued accounting guidance related to the presentation of net periodic pension cost and net periodic postretirement benefit cost. This guidance requires employers to present the service cost component of the net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. The other components of net benefit cost are to be presented separately from the service cost component and outside of any subtotal of income from operations. Employers will have to disclose the line(s) used to present the other components of net periodic benefit cost, if the components are not presented separately in the income statement. This guidance is effective for fiscal years and interim periods beginning after December 15, 2017, and should be applied retrospectively. Early adoption is permitted as of the beginning of an annual period for which financial statements have not yet been issued. This gui dance is not expected to have a material impact on our Consolidated Financial Statements. In May 2017, the FASB issued new accounting guidance which clarifies when to account for a change to the terms or conditions of a share based payment award as a modification. Under this guidance, modification is required only if the fair value, the vesting conditions, or the classification of an award as equity or liability changes as a result of the change in terms or conditions. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for reporting periods for which financial statements have not yet been issued. This gui dance is not expected to have a material impact on our Consolidated Financial Statements. Other recent authoritative guidance issued by the FASB (including technical corrections to the Accounting Standards Codification) and the Securities and Exchange Commission did not, or are not expected to , have a material effect on Monro’s Consolidated Financial Statements. Guarantees At the time we issue a guarantee, we recognize an initial liability for the fair value, or market value, of the obligation we assume under that guarantee. Monro has guaranteed certain lease payments, primarily related to franchisees, amounting to $6.2 million. This amount represents the maximum potential amount of future payments under the guarantees as of September 23, 2017. The leases are guaranteed through April 2020. In the event of default by the franchise owner, Monro generally retains the right to assume the lease of the related store, enabling Monro to re-franchise the location or to operate that location as a Company-operated store. We have recorded a liability related to anticipated defaults under the foregoing leases , of $.5 million and $.6 million as of September 23, 2017 and March 25, 2017, respectively. |
Acquisitions
Acquisitions | 6 Months Ended |
Sep. 23, 2017 | |
Acquisitions [Abstract] | |
Acquisitions | Note 2 – Acquisitions Monro’s acquisitions are strategic moves in our plan to fill in and expand our presence in existing and contiguous markets, and leverage fixed operating costs such as distribution, advertising and administration. Acquisitions in this footnote include acquisitions of five or more locations as well as acquisitions of one to four locations that are part of the Company’s greenfield store growth strategy. Fiscal 2018 During the first six months of fiscal 2018, we acquired the following businesses for an aggregate purchase price of $14.0 million. The acquisitions were financed through our existing credit facility. The results of operations for these acquisitions are included in our financial results from the respective acquisition dates. · On August 13, 2017 , we acquired eight retail tire and automotive repair stores located in Indiana and Illinois from Auto MD, LLC. These stores operate under the Car-X name. · On July 30, 2017 , we acquired 13 retail tire and automotive repair stores in Michigan, 12 of which were operating as Speedy Auto Service and Tire dealer locations, from UVR, Inc. One of the acquired stores was not opened by Monro. These stores operate under the Monro name. · On July 9, 2017 , we acquired one retail tire and automotive repair store located in North Carolina from Norman Young Tires, Inc. This store operates under the Treadquarters name. · On June 25, 2017 , we acquired one retail tire and automotive repair store located in Illinois from D&S Pulaski, LLC. This store operates under the Car-X name. · On June 11, 2017 , we acquired two retail tire and automotive repair stores located in Minnesota and Wisconsin from J & R Diversified, Inc. These stores operate under the Car-X name. · On June 11, 2017 , we acquired one retail tire and automotive repair store located in Ohio from Michael N. McGroarty, Inc. This store operates under the Mr. Tire name. · On June 2, 2017 , we acquired one retail tire and automotive repair store located in Connecticut from Tires Plus LLC. This store operates under the Monro name. · On May 21, 2017 , we acquired one retail tire and automotive repair store located in Ohio from Bob Sumerel Tire Co., Inc. This store operates under the Mr. Tire name. · On April 23, 2017 , we acquired one retail tire and automotive repair store located in Florida from Collier Automotive Group, Inc. This store operates under The Tire Choice name. These acquisitions resulted in goodwill related to, among other things, growth opportunities, synergies and economies of scale expected from combining these businesses with ours, as well as unidentifiable intangible assets. All of the goodwill is expected to be deductible for tax purposes. We have recorded finite-lived intangible assets at their estimated fair value related to favorable leases and customer lists. We expensed all costs related to acquisitions in the six months ended September 23, 2017. The total costs related to completed acquisitions were $.2 million and $.3 million for the three and six months ended September 23, 2017, respectively. These costs are included in the Consolidated Statements of Comprehensive Income primarily under operating, selling, general and administrative expenses. Sales for the fiscal 2018 acquired entities for the three and six months ended September 23, 2017 totaled $3.1 million and $3.6 million, respectively, for the period from acquisition date through September 23, 2017. Supplemental pro forma information for the current or prior reporting periods has not been presented due to the impracticability of obtaining detailed, accurate or reliable data for the periods the acquired entities were not owned by Monro. The preliminary fair values of identifiable assets acquired and liabilities assumed were based on preliminary valuations and estimates. The excess of the net purchase price over net tangible and intangible assets acquired was recorded as goodwill. The preliminary allocation of the aggregate purchase price as of September 23, 2017 was as follows: As of Acquisition Date (Dollars in thousands) Inventories $ 443 Other current assets 139 Property, plant and equipment 5,461 Intangible assets 2,917 Other non-current assets 7 Long-term deferred income tax assets 2,129 Total assets acquired 11,096 Other current liabilities 980 Long-term capital leases and financing obligations 8,831 Other long-term liabilities 80 Total liabilities assumed 9,891 Total net identifiable assets acquired $ 1,205 Total consideration transferred $ 14,033 Less: total net identifiable assets acquired 1,205 Goodwill $ 12,828 The following are the intangible assets acquired and their respective fair values and weighted average useful lives: As of Acquisition Date Dollars in thousands Weighted Average Useful Life Favorable leases $ 1,914 10 years Customer lists 1,003 7 years Total $ 2,917 9 years Fiscal 2017 During the first six months of fiscal 2017, we acquired the following businesses for an aggregate purchase price of $129.1 million. The acquisitions were financed through our existing credit facility. The results of operations for these acquisitions are included in Monro’s financial results from the respective acquisition dates. · On September 19, 2016 , we acquired one commercial tire and automotive repair store located in Florida from Florida Tire Service, LLC . This store operates under The Tire Choice name. · On September 18, 2016 , we acquired two retail tire and automotive repair stores located in Michigan from Davco Development Company and Ricketts, Inc. These stores operate under the Monro name. · On September 11, 2016 , we acquired 26 retail/commercial tire and automotive repair stores and one retread plant located in North Carolina, as well as four wholesale centers, from Clark Tire & Auto, Inc. These stores operate under the Mr. Tire name. The wholesale centers operate under the Tires Now name. · On July 18, 2016 , we acquired one retail tire and automotive repair store located in Indiana from NTI, LLC. This store operates under the Car-X name. · On July 17, 2016 , we acquired one retail tire and automotive repair store located in Georgia from Kwik-Fit Tire & Service. This store operates under the Mr. Tire name. · On July 10, 2016 , we acquired four retail tire and automotive repair stores located in Minnesota from Task Holdings, Inc. and Autopar , Inc. These stores operate under the Car-X name. · On June 26, 2016 , we acquired one retail tire and automotive repair store located in Michigan from Harlow Tire Company. This store operates under the Monro name. · On June 19, 2016 , we acquired two retail tire and automotive repair stores located in New Hampshire from Express Tire Centers, LLC. These stores operate under the Tire Warehouse name. · On May 8, 2016 , we acquired one retail tire and automotive repair store located in Florida from Pioneer Tire Pros. This store ope rates under The Tire Choice name. · On May 1, 2016 , we acquired 29 retail/commercial tire and automotive repair stores and one retread plant located in Florida from McGee Tire Stores, Inc. These stores operate primarily under The Tire Choice name. The acquisitions resulted in goodwill related to, among other things, growth opportunities, synergies and economies of scale expected from combining these business es with ours, and unidentifiable intangible assets. All of the goodwill is expected to be deductible for tax purposes. We have recorded finite-lived intangible assets at their estimated fair value related to customer lists, favorable leases and trade names. We expensed all costs related to acquisitions in the six months ended September 24, 2016. The total costs related to completed acquisitions were $.2 million and $.4 million for the three and six months ended September 24, 2016, respectively. These costs are included in the Consolidated Statements of Comprehensive Income primarily under operating, selling, general and administrative expenses. Sales for the fiscal 2017 acquired entities for the three and six months ended September 24, 2016 totaled $14.3 million and $22.0 million, respectively, for the period from acquisition date through September 24, 2016. Supplemental pro forma information for the current or prior reporting periods has not been presented due to the impracticability of obtaining detailed, accurate or reliable data for the periods the acquired entities were not owned by Monro. We have recorded the identifiable assets acquired and liabilities assumed at their fair values as of their respective acquisition dates (including any measurement period adjustments), with the remainder recorded as goodwill as follows: As of Acquisition Date (Dollars in thousands) Trade receivables $ 7,006 Inventories 18,125 Other current assets 377 Property, plant and equipment 23,674 Intangible assets 17,804 Other non-current assets 174 Long-term deferred income tax assets 6,099 Total assets acquired 73,259 Warranty reserves 448 Other current liabilities 2,805 Long-term capital leases and financing obligations 26,207 Other long-term liabilities 999 Total liabilities assumed 30,459 Total net identifiable assets acquired $ 42,800 Total consideration transferred $ 129,096 Plus: gain on bargain purchase 13 Less: total net identifiable assets acquired 42,800 Goodwill $ 86,309 The total consideration of $129.1 million is comprised of $129 million in cash, and a $.1 million payable to a seller. The payable is being paid via equal annual payments through September 2019. The following are the intangible assets acquired and their respective fair values and weighted average useful lives: As of Acquisition Date Dollars in thousands Weighted Average Useful Life Customer lists $ 9,461 13 years Favorable leases 5,388 14 years Trade names 2,955 17 years Total $ 17,804 14 years As a result of the updated purchase price allocations, certain of the fair value amounts previously estimated were adjusted during the measurement period. These measurement period adjustments related to updated valuation reports and appraisals received from our external valuation specialists, as well as revisions to internal estimates. The changes in estimates include an increase in property, plant and equipment of $1.2 million; a decrease in intangible assets of $2.0 million; a decrease in long-term deferred income tax assets of $.3 million; a decrease in other current liabilities of $.1 million; and an increase in long-term capital leases and financing obligations of $.2 million. The measurement period adjustments resulted in an increase of goodwill of $1.2 million. These measurement period adjustments were not material to the Consolidated Statements of Comprehensive Income for the quarter and six months ended September 23, 2017, respectively. We continue to refine the valuation data and estimates primarily related to inventory, road hazard warranty, intangible assets, real estate, and real property leases for fiscal 2017 acquisitions which closed subsequent to September 24, 2016 and the fiscal 2018 acquisitions, and expect to complete valuations no later than the first anniversary date of the respective acquisition. We anticipate that adjustments will continue to be made to the fair values of identifiable assets acquired and liabilities assumed and those adjustments may or may not be material. |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Sep. 23, 2017 | |
Earnings Per Common Share [Abstract] | |
Earnings Per Common Share | Note 3 – Earnings per Common Share Basic earnings per common share amounts are computed by dividing income available to common shareholders, after deducting preferred stock dividends, by the average number of common shares outstanding. Diluted earnings per common share amounts assume the issuance of common stock for all potentially dilutive equivalent securities outstanding. The following is a reconciliation of basic and diluted earnings per common share for the respective periods: Quarter Ended Six Months Ended Fiscal September Fiscal September 2017 2016 2017 2016 (Amounts in thousands, except per share data) Numerator for earnings per common share calculation: Net income $ 17,267 $ 17,544 $ 34,852 $ 34,299 Preferred stock dividends (92) (129) (184) (258) Income available to common shareholders $ 17,175 $ 17,415 $ 34,668 $ 34,041 Denominator for earnings per common share calculation: Weighted average common shares, basic 32,754 32,291 32,729 32,274 Effect of dilutive securities: Preferred stock 510 760 510 760 Stock options 45 266 61 292 Weighted average number of common shares, diluted 33,309 33,317 33,300 33,326 Basic earnings per common share: $ .52 $ .54 $ 1.06 $ 1.05 Diluted earnings per common share: $ .52 $ .53 $ 1.05 $ 1.03 The computation of diluted earnings per common share excludes the effect of the assumed exercise of approximately 1,066,000 and 1,063,000 stock options for the three and six months ended fiscal September 23, 2017, respectively, and 243,000 and 241,000 for the three and six months ended September 24, 2016, respectively. Such amounts were excluded as the exercise prices of these stock options were greater than the average market value of our common stock for those periods, resulting in an anti-dilutive effect on diluted earnings per common share. |
Income Taxes
Income Taxes | 6 Months Ended |
Sep. 23, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | Note 4 – Income Taxes In the normal course of business, we provide for uncertain tax positions and the related interest and penalties, and adjust our unrecognized tax benefits and accrued interest and penalties accordingly. The total amounts of unrecognized tax benefits were $7.4 million and $6.9 million at September 23, 2017 and March 25, 2017, respectively, the majority of which, if recognized, would affect the effective tax rate. Additionally, we have accrued interest and penalties related to unrecognized tax benefits of approximately $.5 million and $.4 million as of September 23, 2017 and March 25, 2017, respectively. We file U.S. federal income tax returns and income tax returns in various state jurisdictions. Our fiscal 2014 through fiscal 2016 U.S. federal tax years and various state tax years remain subject to income tax examinations by tax authorities. |
Fair Value
Fair Value | 6 Months Ended |
Sep. 23, 2017 | |
Fair Value [Abstract] | |
Fair Value | Note 5 – Fair Value Long-term debt had a carrying amount and a fair value of $153.1 million as of September 23, 2017 , as compared to a carrying amount and a fair value of $182.4 million as of March 25, 2017 . The fair value of long-term debt was estimated based on discounted cash flow analyses using either quoted market prices for the same or similar issues, or the current interest rates offered to Monro for debt with similar maturities. |
Supplemental Disclosure of Cash
Supplemental Disclosure of Cash Flow Information | 6 Months Ended |
Sep. 23, 2017 | |
Supplemental Disclosure of Cash Flow Information [Abstract] | |
Supplemental Disclosure of Cash Flow Information | Note 6 – Supplemental Disclosure of Cash Flow Information The following represents non-cash investing and financing activities during the periods indicated: Six Months Ended September 23, 2017: In connection with the fiscal 2018 acquisitions and fiscal 2017 acquisition measurement period adjustments (see Note 2), liabilities were assumed as follows: (Dollars in thousands) Fair value of assets acquired $ 9,988 Goodwill acquired 14,036 Gain on bargain purchase (13) Cash paid, net of cash acquired (14,058) Liabilities assumed $ 9,953 Six Months Ended September 24, 2016: In connection with the fiscal 2017 acquisitions and fiscal 2016 acquisition measurement period adjustments, liabilities were assumed as follows: (Dollars in thousands) Fair value of assets acquired $ 70,273 Goodwill acquired 87,791 Cash paid, net of cash acquired (129,473) Amounts payable to sellers 352 Liabilities assumed $ 28,943 |
Cash Dividend
Cash Dividend | 6 Months Ended |
Sep. 23, 2017 | |
Cash Dividend [Abstract] | |
Cash Dividend | Note 7 – Cash Dividend In May 2017, our Board of Directors declared its intention to pay a regular quarterly cash dividend during fiscal year 2018 of $.18 per common share or common share equivalent beginning with the first quarter of fiscal year 2018. However, the declaration of and any determination as to the payment of future dividends will be at the discretion of the Board of Directors and will depend on our financial condition, results of operations, capital requirements, compliance with charter and credit facility restrictions, and such other factors as the Board of Directors deems relevant. |
Condensed Consolidated Financ15
Condensed Consolidated Financial Statements (Policy) | 6 Months Ended |
Sep. 23, 2017 | |
Condensed Consolidated Financial Statements [Abstract] | |
Revisions And Reclassifications | Revisions We have evaluated the principal vs. agent accounting guidance in assessing the appropriate presentation for certain transactions primarily related to our fiscal 2017 acquisitions. We have determined agent accounting is appropriate for such transactions and therefore concluded that amounts previously presented on a gross basis should have been recorded on a net basis. Accordingly, we have revised amounts previously recorded in connection with these transactions during the first and second quarters of fiscal 2017 . The revisions resulted in a reduction of sales and cost of sales by equal amounts of $1.6 million and $2.7 million for the first and second quarters of fiscal 2017 , respectively, and did not impact gross profit as previously reported. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance for the reporting of revenue from contracts with customers. This guidance provides guidelines a company will apply to determine the measurement of revenue and timing of when it is recognized. Additional guidance has subsequently been issued to amend or clarify the reporting of revenue from contracts with customers. The guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017. Early adoption is permitted, but not before the original effective date of December 15, 2016. While the evaluation of the impact of the new revenue recognition guidance on our Consolidated Financial Statements has not yet been fully determined, we anticipate the provisions to primarily impact the deferral of revenue generated by the sale of an extended warranty. We are required to adopt this guidance utilizing one of two methods: retrospective restatement for each reporting period presented at time of adoption, or a modified retrospective approach with the cumulative effect of initially applying this guidance recognized at the date of initial application. We intend to elect an adoption methodology in the first quarter of fiscal 2019, after we have fully evaluated the impact on our Consolidated Financial Statements , and we expect to adopt the modified retrospective method. Under this method, we would recognize the cumulative effect of the changes in retained earnings at the date of adoption, but would not restate prior periods. In addition, we expect adoption to lead to increased footnote disclosures . In February 2016, the FASB issued new accounting guidance related to leases. This guidance establishes a right of use (“ROU”) model that requires a lessee to record a ROU asset and lease liability on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. Early adoption is permitted. Approximately 50% of our store leases and all of our land leases are currently not recorded on our balance sheet. Recording ROU assets and liabilities for these leases is expected to have a material impact on our Consolidated Balance Sheet. We are currently evaluating the impact that recording ROU assets and liabilities will have on our Consolidated Statement of Comprehensive Income and the financial statement impact , if material, that the standard will have on leases which are currently recorded on our Consolidated Balance Sheet. In March 2016, the FASB issued new accounting guidance intended to simplify various aspects related to accounting for share-based payments and their presentation in the financial statements. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2016. We have adopted this guidance during the first quarter of fiscal 2018. Amendments to this guidance related to accounting for excess tax benefits and tax deficiencies have been adopted prospectively and had an immaterial impact on the Consolidated Statement of Comprehensive Income for the six months ended September 23, 2017. Excess tax benefits related to share-based payments are now included in operating cash flows rather than financing cash flows. This change has been applied prospectively in accordance with the guidance and prior periods have not been adjusted. We have previously classified cash paid for tax withholding purposes as a financing activity in the statement of cash flows. Therefore, there is no change related to this requirement. The amendments allow for a one-time accounting policy election to either account for forfeitures as they occur or continue to estimate forfeitures as required by current guidance. We have elected to continue estimating forfeitures through applying a forfeiture rate. In August 2016, the FASB issued new accounting guidance related to cash flow classification. This guidance clarifies and provides specific guidance on eight cash flow classification issues that are not addressed by current GAAP and thereby reduce the current diversity in practice. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017. Early adoption is permitted. We are currently evaluating the potential impact of the adoption of this guidance on our Consolidated Financial Statements. In January 2017, the FASB issued new accounting guidance which clarifies the definition of a business, particularly when evaluating whether transactions should be accounted for as acquisitions or dispositions of assets or businesses. This guidance provides a screen to determine when a set of assets and activities (collectively referred to as a “set”) is not a business. This screen requires that when substantially all of the fair value of the assets is concentrated in a single identifiable asset or group of similar identifiable assets, the set is not a business. If the screen is not met, the guidance provides a framework to evaluate whether both an input and a substantive process are present to be considered a business. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017. Early adoption is permitted for certain transactions. We are currently evaluating the potential impact of the adoption of this guidance on our Consolidated Financial Statements. In January 2017, the FASB issued new accounting guidance simplifying the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test, which required the determination of an implied fair value of goodwill. Under this guidance, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. This guidance is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and should be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. This guid ance is not expected to have a material impact on our Consolidated Financial Statements. In March 2017, the FASB issued accounting guidance related to the presentation of net periodic pension cost and net periodic postretirement benefit cost. This guidance requires employers to present the service cost component of the net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. The other components of net benefit cost are to be presented separately from the service cost component and outside of any subtotal of income from operations. Employers will have to disclose the line(s) used to present the other components of net periodic benefit cost, if the components are not presented separately in the income statement. This guidance is effective for fiscal years and interim periods beginning after December 15, 2017, and should be applied retrospectively. Early adoption is permitted as of the beginning of an annual period for which financial statements have not yet been issued. This gui dance is not expected to have a material impact on our Consolidated Financial Statements. In May 2017, the FASB issued new accounting guidance which clarifies when to account for a change to the terms or conditions of a share based payment award as a modification. Under this guidance, modification is required only if the fair value, the vesting conditions, or the classification of an award as equity or liability changes as a result of the change in terms or conditions. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for reporting periods for which financial statements have not yet been issued. This gui dance is not expected to have a material impact on our Consolidated Financial Statements. Other recent authoritative guidance issued by the FASB (including technical corrections to the Accounting Standards Codification) and the Securities and Exchange Commission did not, or are not expected to , have a material effect on Monro’s Consolidated Financial Statements. |
Guarantees | Guarantees At the time we issue a guarantee, we recognize an initial liability for the fair value, or market value, of the obligation we assume under that guarantee. Monro has guaranteed certain lease payments, primarily related to franchisees, amounting to $6.2 million. This amount represents the maximum potential amount of future payments under the guarantees as of September 23, 2017. The leases are guaranteed through April 2020. In the event of default by the franchise owner, Monro generally retains the right to assume the lease of the related store, enabling Monro to re-franchise the location or to operate that location as a Company-operated store. We have recorded a liability related to anticipated defaults under the foregoing leases , of $.5 million and $.6 million as of September 23, 2017 and March 25, 2017, respectively. |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Sep. 23, 2017 | |
Fiscal 2018 Acquisitions [Member] | |
Business Acquisition [Line Items] | |
Schedule Of Purchase Price Allocation | As of Acquisition Date (Dollars in thousands) Inventories $ 443 Other current assets 139 Property, plant and equipment 5,461 Intangible assets 2,917 Other non-current assets 7 Long-term deferred income tax assets 2,129 Total assets acquired 11,096 Other current liabilities 980 Long-term capital leases and financing obligations 8,831 Other long-term liabilities 80 Total liabilities assumed 9,891 Total net identifiable assets acquired $ 1,205 Total consideration transferred $ 14,033 Less: total net identifiable assets acquired 1,205 Goodwill $ 12,828 |
Schedule Of Intangible Assets Acquired | As of Acquisition Date Dollars in thousands Weighted Average Useful Life Favorable leases $ 1,914 10 years Customer lists 1,003 7 years Total $ 2,917 9 years |
Fiscal 2017 Acquisitions [Member] | |
Business Acquisition [Line Items] | |
Schedule Of Purchase Price Allocation | As of Acquisition Date (Dollars in thousands) Trade receivables $ 7,006 Inventories 18,125 Other current assets 377 Property, plant and equipment 23,674 Intangible assets 17,804 Other non-current assets 174 Long-term deferred income tax assets 6,099 Total assets acquired 73,259 Warranty reserves 448 Other current liabilities 2,805 Long-term capital leases and financing obligations 26,207 Other long-term liabilities 999 Total liabilities assumed 30,459 Total net identifiable assets acquired $ 42,800 Total consideration transferred $ 129,096 Plus: gain on bargain purchase 13 Less: total net identifiable assets acquired 42,800 Goodwill $ 86,309 |
Schedule Of Intangible Assets Acquired | As of Acquisition Date Dollars in thousands Weighted Average Useful Life Customer lists $ 9,461 13 years Favorable leases 5,388 14 years Trade names 2,955 17 years Total $ 17,804 14 years |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Sep. 23, 2017 | |
Earnings Per Common Share [Abstract] | |
Reconciliation Of Basic And Diluted Earnings Per Share | Quarter Ended Six Months Ended Fiscal September Fiscal September 2017 2016 2017 2016 (Amounts in thousands, except per share data) Numerator for earnings per common share calculation: Net income $ 17,267 $ 17,544 $ 34,852 $ 34,299 Preferred stock dividends (92) (129) (184) (258) Income available to common shareholders $ 17,175 $ 17,415 $ 34,668 $ 34,041 Denominator for earnings per common share calculation: Weighted average common shares, basic 32,754 32,291 32,729 32,274 Effect of dilutive securities: Preferred stock 510 760 510 760 Stock options 45 266 61 292 Weighted average number of common shares, diluted 33,309 33,317 33,300 33,326 Basic earnings per common share: $ .52 $ .54 $ 1.06 $ 1.05 Diluted earnings per common share: $ .52 $ .53 $ 1.05 $ 1.03 |
Supplemental Disclosure of Ca18
Supplemental Disclosure of Cash Flow Information (Tables) | 6 Months Ended |
Sep. 23, 2017 | |
Fiscal 2018 and 2017 Adjustments [Member] | |
Business Acquisition [Line Items] | |
Liabilities on acquisitions assumed | (Dollars in thousands) Fair value of assets acquired $ 9,988 Goodwill acquired 14,036 Gain on bargain purchase (13) Cash paid, net of cash acquired (14,058) Liabilities assumed $ 9,953 |
Fiscal 2017 And 2016 Adjustments [Member] | |
Business Acquisition [Line Items] | |
Liabilities on acquisitions assumed | (Dollars in thousands) Fair value of assets acquired $ 70,273 Goodwill acquired 87,791 Cash paid, net of cash acquired (129,473) Amounts payable to sellers 352 Liabilities assumed $ 28,943 |
Condensed Consolidated Financ19
Condensed Consolidated Financial Statements (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 23, 2017 | Jun. 24, 2017 | Mar. 25, 2017 | |
Financial Statement [Line Items] | |||
Liability for anticipated lease defaults | $ 0.5 | $ 0.6 | |
Sales [Member] | |||
Financial Statement [Line Items] | |||
Reclassification adjustment | (2.7) | $ (1.6) | |
Cost of Sales [Member] | |||
Financial Statement [Line Items] | |||
Reclassification adjustment | (2.7) | $ (1.6) | |
Property Lease Guarantee [Member] | Maximum [Member] | |||
Financial Statement [Line Items] | |||
Maximum potential guarantee payments | $ 6.2 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 23, 2017USD ($) | Sep. 24, 2016USD ($) | Sep. 23, 2017USD ($)store | Sep. 24, 2016USD ($)storeproperty | |
Business Acquisition [Line Items] | ||||
Costs related to completed acquisitions | $ | $ 200 | $ 200 | $ 300 | $ 400 |
Sales for acquired entities | $ | $ 3,100 | $ 14,300 | 3,600 | 22,000 |
Total consideration transferred, portion in cash | $ | 129,000 | |||
Payable to a seller | $ | $ 100 | |||
Change in estimates, property, plant and equipment | $ | 1,200 | |||
Change in estimates, intangible assets | $ | (2,000) | |||
Change in estimates, long-term deferred income tax assets | $ | (300) | |||
Change in current liabilities | $ | (100) | |||
Change in estimates, long-term capital leases and financing obligations | $ | 200 | |||
Adjustments to goodwill related to purchase accounting | $ | $ 1,200 | |||
Auto MD, LLC. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Aug. 13, 2017 | |||
Number of stores acquired | 8 | |||
UVR, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Jul. 30, 2017 | |||
Number of stores acquired, both operating and not opened | 13 | |||
Number of stores acquired | 12 | |||
Number of stores never opened | 1 | |||
Norman Young Tires, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Jul. 9, 2017 | |||
Number of stores acquired | 1 | |||
D&S Pulaski, LLC. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Jun. 25, 2017 | |||
Number of stores acquired | 1 | |||
J & R Diversified, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Jun. 11, 2017 | |||
Number of stores acquired | 2 | |||
Michael N. McGroarty, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Jun. 11, 2017 | |||
Number of stores acquired | 1 | |||
Tires Plus LLC. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Jun. 2, 2017 | |||
Number of stores acquired | 1 | |||
Bob Sumerel Tire Co., Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | May 21, 2017 | |||
Number of stores acquired | 1 | |||
Collier Automotive Group, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Apr. 23, 2017 | |||
Number of stores acquired | 1 | |||
Florida Tire Service, LLC. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Sep. 19, 2016 | |||
Number of stores acquired | 1 | |||
Davco Development Company and Ricketts, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Sep. 18, 2016 | |||
Number of stores acquired | 2 | |||
Clark Tire & Auto, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Sep. 11, 2016 | |||
Number of stores acquired | 26 | |||
Number of retread centers acquired | property | 1 | |||
Number of wholesale centers acquired | property | 4 | |||
NTI, LLC. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Jul. 18, 2016 | |||
Number of stores acquired | 1 | |||
Kwik-Fit Tire & Service [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Jul. 17, 2016 | |||
Number of stores acquired | 1 | |||
Task Holdings, Inc. and Autopar, Inc. Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Jul. 10, 2016 | |||
Number of stores acquired | 4 | |||
Harlow Tire Company Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Jun. 26, 2016 | |||
Number of stores acquired | 1 | |||
Express Tire Centers, LLC. Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Jun. 19, 2016 | |||
Number of stores acquired | 2 | |||
Pioneer Tire Pros Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | May 8, 2016 | |||
Number of stores acquired | 1 | |||
McGee Tire Stores, Inc. Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | May 1, 2016 | |||
Number of stores acquired | 29 | |||
Number of retread centers acquired | property | 1 | |||
Fiscal 2018 Acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Total consideration transferred | $ | $ 14,033 | |||
Fiscal 2017 Acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Total consideration transferred | $ | $ 129,096 |
Acquisitions (Schedule Of Purch
Acquisitions (Schedule Of Purchase Price Allocation) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Sep. 23, 2017 | Sep. 24, 2016 | Mar. 25, 2017 | |
Purchase price of acquisitions allocation | |||
Plus: gain on bargain purchase | $ 13 | ||
Goodwill | 515,772 | $ 501,736 | |
Fiscal 2018 Acquisitions [Member] | |||
Purchase price of acquisitions allocation | |||
Inventories | 443 | ||
Other current assets | 139 | ||
Property, plant and equipment | 5,461 | ||
Intangible assets | 2,917 | ||
Other non-current assets | 7 | ||
Long-term deferred income tax assets | 2,129 | ||
Total assets acquired | 11,096 | ||
Other current liabilities | 980 | ||
Long-term capital leases and financing obligations | 8,831 | ||
Other long-term liabilities | 80 | ||
Total liabilities assumed | 9,891 | ||
Total net identifiable assets acquired | 1,205 | ||
Total consideration transferred | 14,033 | ||
Less: total net identifiable assets acquired | 1,205 | ||
Goodwill | $ 12,828 | ||
Fiscal 2017 Acquisitions [Member] | |||
Purchase price of acquisitions allocation | |||
Trade receivables | $ 7,006 | ||
Inventories | 18,125 | ||
Other current assets | 377 | ||
Property, plant and equipment | 23,674 | ||
Intangible assets | 17,804 | ||
Other non-current assets | 174 | ||
Long-term deferred income tax assets | 6,099 | ||
Total assets acquired | 73,259 | ||
Warranty reserves | 448 | ||
Other current liabilities | 2,805 | ||
Long-term capital leases and financing obligations | 26,207 | ||
Other long-term liabilities | 999 | ||
Total liabilities assumed | 30,459 | ||
Total net identifiable assets acquired | 42,800 | ||
Total consideration transferred | 129,096 | ||
Plus: gain on bargain purchase | 13 | ||
Less: total net identifiable assets acquired | 42,800 | ||
Goodwill | $ 86,309 |
Acquisitions (Schedule Of Intan
Acquisitions (Schedule Of Intangible Assets Acquired) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 23, 2017 | Sep. 24, 2016 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | $ 2,917 | $ 17,804 |
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life | 9 years | |
Customer Lists [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | $ 1,003 | 9,461 |
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life | 7 years | |
Favorable Leases [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | $ 1,914 | 5,388 |
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life | 10 years | |
Trade Names [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | $ 2,955 | |
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life | 17 years | |
Fiscal 2017 Acquisitions [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life | 14 years | |
Fiscal 2017 Acquisitions [Member] | Customer Lists [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life | 13 years | |
Fiscal 2017 Acquisitions [Member] | Favorable Leases [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life | 14 years | |
Fiscal 2017 Acquisitions [Member] | Trade Names [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life | 17 years |
Earnings Per Common Share (Narr
Earnings Per Common Share (Narrative) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Sep. 23, 2017 | Sep. 24, 2016 | Sep. 23, 2017 | Sep. 24, 2016 | |
Earnings Per Common Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share | 1,066,000 | 243,000 | 1,063,000 | 241,000 |
Earnings Per Common Share (Reco
Earnings Per Common Share (Reconciliation Of Basic And Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 23, 2017 | Sep. 24, 2016 | Sep. 23, 2017 | Sep. 24, 2016 | ||
Numerator for earnings per common share calculation: | |||||
Net income | $ 17,267 | $ 17,544 | $ 34,852 | $ 34,299 | |
Preferred stock dividends | (92) | (129) | (184) | [1] | (258) |
Income available to common stockholders | $ 17,175 | $ 17,415 | $ 34,668 | $ 34,041 | |
Denominator for earnings per common share calculation: | |||||
Weighted average common shares, basic | 32,754 | 32,291 | 32,729 | 32,274 | |
Effect of dilutive securities: | |||||
Preferred stock | 510 | 760 | 510 | 760 | |
Stock options | 45 | 266 | 61 | 292 | |
Weighted average number of common shares, diluted | 33,309 | 33,317 | 33,300 | 33,326 | |
Basic earnings per common share: | $ 0.52 | $ 0.54 | $ 1.06 | $ 1.05 | |
Diluted earnings per common share: | $ 0.52 | $ 0.53 | $ 1.05 | $ 1.03 | |
[1] | Represents first and second quarter fiscal year 2018 dividends of $.18 per common share or common share equivalent each quarter, declared on May 18, 2017 and August 15, 2017, respectively. |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | Sep. 23, 2017 | Mar. 25, 2017 |
Income Taxes [Abstract] | ||
Unrecognized tax benefits | $ 7.4 | $ 6.9 |
Interest and penalties accrued related to unrecognized tax benefits | $ 0.5 | $ 0.4 |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Millions | Sep. 23, 2017 | Mar. 25, 2017 |
Fair Value [Abstract] | ||
Carrying amount of long-term debt ( including current portion) | $ 153.1 | $ 182.4 |
Fair value of long-term debt (including current portion) | $ 153.1 | $ 182.4 |
Supplemental Disclosure of Ca27
Supplemental Disclosure of Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Sep. 23, 2017 | Sep. 24, 2016 | Mar. 25, 2017 | |
Business Acquisition [Line Items] | |||
Goodwill acquired | $ 515,772 | $ 501,736 | |
Cash paid, net of cash acquired | (14,468) | $ (129,473) | |
Amounts payable to sellers | (100) | ||
Fiscal 2018 and 2017 Adjustments [Member] | |||
Business Acquisition [Line Items] | |||
Fair value of assets acquired | 9,988 | ||
Goodwill acquired | 14,036 | ||
Gain on bargain purchase | (13) | ||
Cash paid, net of cash acquired | (14,058) | ||
Liabilities assumed | $ 9,953 | ||
Fiscal 2017 And 2016 Adjustments [Member] | |||
Business Acquisition [Line Items] | |||
Fair value of assets acquired | 70,273 | ||
Goodwill acquired | 87,791 | ||
Cash paid, net of cash acquired | (129,473) | ||
Amounts payable to sellers | 352 | ||
Liabilities assumed | $ 28,943 |
Cash Dividend (Details)
Cash Dividend (Details) | 1 Months Ended |
May 31, 2017$ / shares | |
Cash Dividend [Abstract] | |
Common stock cash dividends per share declared | $ 0.18 |