Document and Entity Information
Document and Entity Information - shares | 4 Months Ended | |
Apr. 23, 2016 | May. 24, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Apr. 23, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SPTN | |
Entity Registrant Name | SPARTANNASH COMPANY | |
Entity Central Index Key | 877,422 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 37,471,675 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Apr. 23, 2016 | Jan. 02, 2016 |
Current assets | ||
Cash and cash equivalents | $ 28,687 | $ 22,719 |
Accounts and notes receivable, net | 304,754 | 317,183 |
Inventories, net | 533,074 | 521,164 |
Prepaid expenses and other current assets | 29,517 | 22,521 |
Total current assets | 896,032 | 883,587 |
Property and equipment, net | 573,397 | 583,698 |
Goodwill | 322,686 | 322,902 |
Other assets, net | 128,669 | 127,076 |
Total assets | 1,920,784 | 1,917,263 |
Current liabilities | ||
Accounts payable | 333,440 | 353,688 |
Accrued payroll and benefits | 62,808 | 71,973 |
Other accrued expenses | 35,446 | 42,660 |
Current maturities of long-term debt and capital lease obligations | 19,083 | 19,003 |
Total current liabilities | 450,777 | 487,324 |
Long-term liabilities | ||
Deferred income taxes | 119,417 | 116,600 |
Postretirement benefits | 16,493 | 16,008 |
Other long-term liabilities | 46,501 | 38,759 |
Long-term debt and capital lease obligations | 496,114 | 467,793 |
Total long-term liabilities | $ 678,525 | $ 639,160 |
Commitments and contingencies (Note 8) | ||
Shareholders’ equity | ||
Common stock, voting, no par value; 100,000 shares authorized; 37,514 and 37,600 shares outstanding | $ 518,181 | $ 521,698 |
Preferred stock, no par value, 10,000 shares authorized; no shares outstanding | ||
Accumulated other comprehensive loss | $ (11,446) | $ (11,447) |
Retained earnings | 284,747 | 280,528 |
Total shareholders’ equity | 791,482 | 790,779 |
Total liabilities and shareholders’ equity | $ 1,920,784 | $ 1,917,263 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Apr. 23, 2016 | Jan. 02, 2016 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares outstanding | 37,514,000 | 37,600,000 |
Preferred stock, par value | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) - USD ($) $ in Thousands | 4 Months Ended | ||
Apr. 23, 2016 | Apr. 25, 2015 | ||
Income Statement [Abstract] | |||
Net sales | $ 2,278,770 | $ 2,312,683 | |
Cost of sales | 1,944,528 | 1,976,437 | |
Gross profit | 334,242 | 336,246 | |
Operating expenses | |||
Selling, general and administrative | 296,381 | 302,371 | |
Merger integration and acquisition | 897 | 2,684 | |
Restructuring charges and asset impairment | 15,304 | 7,338 | |
Total operating expenses | 312,582 | 312,393 | |
Operating earnings | 21,660 | 23,853 | |
Other (income) and expenses | |||
Interest expense | 5,823 | 6,750 | |
Other, net | (150) | (28) | |
Total other expenses, net | 5,673 | 6,722 | |
Earnings before income taxes and discontinued operations | 15,987 | 17,131 | |
Income taxes | 6,027 | 6,684 | |
Earnings from continuing operations | 9,960 | 10,447 | |
Loss from discontinued operations, net of taxes | (109) | (120) | |
Net earnings | $ 9,851 | $ 10,327 | |
Basic earnings per share: | |||
Earnings from continuing operations | $ 0.27 | $ 0.28 | |
Loss from discontinued operations | [1] | (0.01) | (0.01) |
Net earnings | 0.26 | 0.27 | |
Diluted earnings per share: | |||
Earnings from continuing operations | 0.27 | 0.28 | |
Loss from discontinued operations | [1] | (0.01) | (0.01) |
Net earnings | $ 0.26 | $ 0.27 | |
[1] | Includes rounding |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 4 Months Ended | |
Apr. 23, 2016 | Apr. 25, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net earnings | $ 9,851 | $ 10,327 |
Other comprehensive income, before tax | ||
Pension and postretirement liability adjustment | 2 | 272 |
Total other comprehensive income, before tax | 2 | 272 |
Income tax expense related to items of other comprehensive income | (1) | (103) |
Total other comprehensive income, after tax | 1 | 169 |
Comprehensive income | $ 9,852 | $ 10,496 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Unaudited) - 4 months ended Apr. 23, 2016 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] |
Balance, value at Jan. 02, 2016 | $ 790,779 | $ 521,698 | $ (11,447) | $ 280,528 |
Balance, shares at Jan. 02, 2016 | 37,600 | 37,600 | ||
Net earnings | $ 9,851 | 9,851 | ||
Other comprehensive income | 1 | 1 | ||
Dividends | (5,632) | (5,632) | ||
Share repurchase, value | (9,000) | $ (9,000) | ||
Share repurchase, shares | (396) | |||
Stock-based employee compensation | 5,024 | $ 5,024 | ||
Issuances of common stock and related tax benefit on stock option exercises and stock bonus plan, value | 1,739 | $ 1,739 | ||
Issuances of common stock and related tax benefit on stock option exercises and stock bonus plan, shares | 75 | |||
Issuances of restricted stock and related income tax benefits, value | 22 | $ 22 | ||
Issuances of restricted stock and related income tax benefits, shares | 297 | |||
Cancellations of restricted stock, value | (1,302) | $ (1,302) | ||
Cancellations of restricted stock, shares | (62) | |||
Balance, value at Apr. 23, 2016 | $ 791,482 | $ 518,181 | $ (11,446) | $ 284,747 |
Balance, shares at Apr. 23, 2016 | 37,514 | 37,514 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) | 4 Months Ended |
Apr. 23, 2016$ / shares | |
Statement Of Stockholders Equity [Abstract] | |
Dividends per share | $ 0.15 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 4 Months Ended | |
Apr. 23, 2016 | Apr. 25, 2015 | |
Cash flows from operating activities | ||
Net earnings | $ 9,851 | $ 10,327 |
Loss from discontinued operations, net of tax | 109 | 120 |
Earnings from continuing operations | 9,960 | 10,447 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Non-cash restructuring, asset impairment and other charges | 14,662 | 5,864 |
Depreciation and amortization | 23,895 | 26,168 |
LIFO expense | 1,412 | 1,723 |
Postretirement benefits expense | 112 | 476 |
Deferred taxes on income | 2,816 | 4,023 |
Stock-based compensation expense | 5,024 | 4,753 |
Excess tax benefit on stock compensation | (122) | (174) |
Other, net | (53) | 123 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 15,494 | (30,205) |
Inventories | (14,009) | 12,495 |
Prepaid expenses and other assets | (8,356) | 5,195 |
Accounts payable | (13,386) | 31,346 |
Accrued payroll and benefits | (12,804) | (13,812) |
Postretirement benefit payments | (77) | (650) |
Other accrued expenses and other liabilities | (16,015) | (8,831) |
Net cash provided by operating activities | 8,553 | 48,941 |
Cash flows from investing activities | ||
Purchases of property and equipment | (18,090) | (12,724) |
Net proceeds from the sale of assets | 4,739 | 9,670 |
Loans to customers | (1,435) | |
Payments from customers on loans | 522 | 500 |
Other | (97) | (534) |
Net cash used in investing activities | (12,926) | (4,523) |
Cash flows from financing activities | ||
Proceeds from revolving credit facility | 428,755 | 269,916 |
Payments on revolving credit facility | (401,737) | (301,949) |
Share repurchase | (9,000) | (2,526) |
Repayment of other long-term debt | (2,841) | (2,979) |
Financing fees paid | (98) | (1,845) |
Excess tax benefit on stock compensation | 122 | 174 |
Proceeds from exercise of stock options | 936 | 2,010 |
Dividends paid | (5,632) | (5,092) |
Net cash provided by (used in) financing activities | 10,505 | (42,291) |
Cash flows from discontinued operations | ||
Net cash used in operating activities | (164) | (95) |
Net cash used in discontinued operations | (164) | (95) |
Net increase in cash and cash equivalents | 5,968 | 2,032 |
Cash and cash equivalents at beginning of period | 22,719 | 6,443 |
Cash and cash equivalents at end of period | $ 28,687 | $ 8,475 |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Basis of Presentation | 4 Months Ended |
Apr. 23, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Basis of Presentation | Note 1 – Summary of Significant Accounting Policies and Basis of Presentation The accompanying unaudited condensed consolidated financial statements (the “financial statements”) are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of SpartanNash Company and its subsidiaries (“SpartanNash” or “the Company”). All significant intercompany accounts and transactions have been eliminated. For further information, refer to the consolidated financial statements and footnotes included in the Annual Report on Form 10-K for the year ended January 2, 2016. In the opinion of management, the accompanying financial statements, taken as a whole, contain all adjustments, which are of a normal recurring nature, necessary to present fairly the financial position of SpartanNash as of April 23, 2016, and the results of its operations and cash flows for the interim periods presented. Interim results are not necessarily indicative of results for a full year. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 4 Months Ended |
Apr. 23, 2016 | |
Accounting Changes And Error Corrections [Abstract] | |
Recently Issued Accounting Standards | Note 2 – Recently Issued Accounting Standards In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, “Compensation – Stock Compensation Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 provides for simplification of several aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The new guidance is effective for the Company in the first quarter of its fiscal year ending December 30, 2017. The Company is currently in the process of evaluating the impact of adoption of this standard on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-04, “Liabilities – Extinguishment of Liabilities: Recognition of Breakage for Certain Prepaid Stored-Value Products.” ASU 2016-04 amends the guidance on extinguishing financial liabilities for certain prepaid stored-value products. The new guidance requires entities that sell prepaid stored-value products redeemable for goods, services or cash at third-party merchants to recognize breakage for those liabilities consistent with the breakage guidance outlined in ASU 2014-09, “Revenue from Contracts with Customers.” The new guidance is effective for the Company in the first quarter of its fiscal year ending December 29, 2018. The Company is currently in the process of evaluating the impact of adoption of this standard on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases,” which provides guidance for lease accounting. The new guidance contained in the ASU stipulates that lessees will need to recognize a right-of-use asset and a lease liability for substantially all leases (other than leases that meet the definition of a short-term lease). The liability will be equal to the present value of lease payments. Treatment in the consolidated statements of earnings will be similar to the current treatment of operating and capital leases. The new guidance is effective on a modified retrospective basis for the Company in the first quarter of its fiscal year ending December 28, 2019. The Company is currently in the process of evaluating the impact of adoption of this standard on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, “ . In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which provides guidance for revenue recognition. The new guidance contained in the ASU affects any reporting organization that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14, “Deferral of the Effective Date,” which results in the guidance being effective for the Company in the first quarter of its fiscal year ending December 29, 2018. Adoption is allowed by either the full retrospective or modified retrospective approach. The Company is currently in the process of evaluating the impact of adoption of this standard on its consolidated financial statements. |
Acquisitions
Acquisitions | 4 Months Ended |
Apr. 23, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Note 3 – On June 16, 2015, SpartanNash acquired certain assets and assumed certain liabilities of Dan’s Super Market, Inc. (“Dan’s”) for a total purchase price of $32.6 million. Dan’s is a six-store chain serving Bismarck and Mandan, North Dakota, and was not a customer of the SpartanNash Food Distribution segment prior to the acquisition. SpartanNash acquired the Dan’s stores to strengthen its offering in this region from both a retail and distribution perspective. The acquired assets and assumed liabilities were recorded at their estimated fair values as of the acquisition date and were based on preliminary estimates that may be subject to further adjustments within the measurement period, which will end in June 2016. As of April 23, 2016, the Company has not recorded any material adjustments within the measurement period related to the acquisition. |
Goodwill
Goodwill | 4 Months Ended |
Apr. 23, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 4 – Goodwill Changes in the carrying amount of goodwill were as follows: (In thousands) Retail Food Distribution Total Balance at January 2, 2016: Goodwill $ 277,135 $ 132,367 $ 409,502 Accumulated impairment charges (86,600 ) — (86,600 ) Goodwill, net 190,535 132,367 322,902 Other (Note 5) (216 ) — (216 ) Balance at April 23, 2016: Goodwill 276,919 132,367 409,286 Accumulated impairment charges (86,600 ) — (86,600 ) Goodwill, net $ 190,319 $ 132,367 $ 322,686 |
Restructuring Charges and Asset
Restructuring Charges and Asset Impairment | 4 Months Ended |
Apr. 23, 2016 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Charges and Asset Impairment | Note 5 – Restructuring Charges and Asset Impairment The following table provides the activity of reserves for closed properties for the 16 weeks ended April 23, 2016. Reserves for closed properties recorded in the condensed consolidated balance sheets are included in “Other accrued expenses” in Current liabilities and “Other long-term liabilities” in Long-term liabilities based on when the obligations are expected to be paid. Lease and (In thousands) Ancillary Costs Severance Total Balance at January 2, 2016 $ 14,448 $ — $ 14,448 Provision for closing charges 12,453 — 12,453 (a) Provision for severance — 895 895 (b) Changes in estimates (96 ) — (96 ) (c) Accretion expense 186 — 186 Payments (1,156 ) (354 ) (1,510 ) Balance at April 23, 2016 $ 25,835 $ 541 $ 26,376 (a) The provision for closing charges represents initial costs estimated to be incurred for lease and related ancillary costs, net of sublease income, related to store closings in the Retail segment. (b) The provision for severance relates to distribution center closings in the Food Distribution segment. (c) As a result of changes in estimates, goodwill was reduced by $0.2 million as the initial charges for certain stores were adjusted related to previous acquisitions. The remaining change in estimates relates to revised estimates of lease costs associated with a previously closed property. Included in the liability are lease obligations recorded at the present value of future minimum lease payments, calculated using a risk-free interest rate, and related ancillary costs from the date of closure to the end of the remaining lease term, net of estimated sublease income. Restructuring and asset impairment charges included in the condensed consolidated statements of earnings consisted of the following: 16 Weeks Ended April 23, April 25, (In thousands) 2016 2015 Asset impairment charges (a) $ — $ 2,353 Provision for closing charges (b) 12,453 6,760 Loss (gain) on sales of assets related to closed facilities (c) 367 (1,540 ) Provision for severance (d) 895 304 Other costs associated with distribution center and store closings (e) 1,769 1,493 Changes in estimates (f) 120 (287 ) Lease termination adjustment (g) (300 ) (1,745 ) $ 15,304 $ 7,338 (a) In 2015, asset impairment charges were incurred in the Retail segment due to the economic and competitive environment of certain stores. (b) The provision for closing charges represents initial costs estimated to be incurred for lease and related ancillary costs, net of sublease income, related to store closings in the Retail segment. (c) The net loss on sales of assets in the 16 weeks ended April 23, 2016, resulted from the sale of a previously closed retail store and food distribution center. The gain on sale of assets in the 16 weeks ended April 25, 2015, resulted from the sale of a closed food distribution center. (d) The provision for severance relates to distribution center closings in the Food Distribution segment. (e) Other closing costs associated with distribution center and store closings represent additional costs incurred in connection with winding down operations at the Food Distribution and Retail segments. (f) The changes in estimates relate to revised estimates of lease and ancillary costs associated with previously closed facilities. The Food Distribution segment realized $120 in the 16 weeks ended April 23, 2016. The Retail segment realized $(287) in the 16 weeks ended April 25, 2015. (g) The lease termination adjustments represent the benefits recognized in connection with lease buyouts on previously closed stores. |
Long-Term Debt
Long-Term Debt | 4 Months Ended |
Apr. 23, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 6 – Long-Term Debt Long-term debt consists of the following: (In thousands) April 23, 2016 January 2, 2016 Senior secured revolving credit facility, due January 2020 $ 424,841 $ 394,982 Senior secured term loan, due January 2020 32,002 34,842 Capital lease obligations 59,688 58,599 Other, 2.61% - 9.25%, due 2016 - 2020 6,277 6,558 Total debt - Principal 522,808 494,981 Unamortized debt issuance costs (7,611 ) (8,185 ) Total debt 515,197 486,796 Less current portion 19,083 19,003 Total long-term debt $ 496,114 $ 467,793 |
Fair Value Measurements
Fair Value Measurements | 4 Months Ended |
Apr. 23, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 7 – Fair Value Measurements Financial instruments include cash and cash equivalents, accounts and notes receivable, accounts payable and long-term debt. The carrying amounts of cash and cash equivalents, accounts and notes receivable, and accounts payable approximate fair value because of the short-term maturities of these financial instruments. At April 23, 2016 and January 2, 2016 the book value and estimated fair value of the Company’s debt instruments, excluding debt financing costs, were as follows: April 23, January 2, (In thousands) 2016 2016 Book value of debt instruments, excluding debt financing costs: Current maturities of long-term debt and capital lease obligations $ 19,083 $ 19,003 Long-term debt and capital lease obligations 503,725 475,978 Total book value of debt instruments 522,808 494,981 Fair value of debt instruments, excluding debt financing costs 525,217 497,116 Excess of fair value over book value $ 2,409 $ 2,135 The estimated fair value of debt is based on market quotes for instruments with similar terms and remaining maturities (Level 2 inputs and valuation techniques). ASC 820 prioritizes the inputs to valuation techniques used to measure fair value into the following hierarchy: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: Unobservable inputs for the asset or liability, reflecting the reporting entity’s own assumptions about the assumptions that market participants would use in pricing. Long-lived assets are measured at fair value on a nonrecurring basis using Level 3 inputs as defined in the fair value hierarchy. Assets with a book value of $5.6 million were measured at a fair value of $3.2 million, resulting in an impairment charge of $2.4 million, in the 16 weeks ended April 25, 2015. The Company’s accounting and finance team management, who report to the Chief Financial Officer (“CFO”), determines the Company’s valuation policies and procedures. The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s accounting and finance team management and are approved by the CFO. Fair value of long-lived assets is determined by estimating the amount and timing of net future cash flows, discounted using a risk-adjusted rate of interest. The Company estimates future cash flows based on experience and knowledge of the geographic area in which the assets are located, and when necessary, uses real estate brokers. See Note 5 for discussion of long-lived asset impairment charges. |
Commitments and Contingencies
Commitments and Contingencies | 4 Months Ended |
Apr. 23, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 8 – Commitments and Contingencies The Company is engaged from time-to-time in routine legal proceedings incidental to its business. The Company does not believe that these routine legal proceedings, taken as a whole, will have a material impact on its business or financial condition. While the ultimate effect of such actions cannot be predicted with certainty, management believes that their outcome will not result in an adverse effect on the Company’s consolidated financial position, operating results or liquidity. The Company contributes to the Central States Southeast and Southwest Pension Fund (“Central States Plan” or “the Plan”), a multi-employer pension plan based on obligations arising from its collective bargaining agreements in Bellefontaine, Ohio; Lima, Ohio; and Grand Rapids, Michigan covering its distribution center union associates at those locations. This plan provides retirement benefits to participants based on their service to contributing employers. The benefits are paid from assets held in trust for that purpose. Trustees are appointed by contributing employers and unions; however, SpartanNash is not a trustee. The trustees typically are responsible for determining the level of benefits to be provided to participants, as well as for such matters as the investment of the assets and the administration of the Plan. The Company currently contributes to the Central States Plan under the terms outlined in the “Primary Schedule” of Central States’ Rehabilitation Plan. This schedule requires varying increases in employer contributions over the previous year’s contribution. Increases are set within the collective bargaining agreement and vary by location. On December 13, 2014, Congress passed the Multi-employer Pension Reform Act of 2014 (“MPRA”). The MPRA is intended to address funding shortfalls in both multi-employer pension plans and the Pension Benefit Guaranty Corporation. Because the MPRA is a complex piece of legislation, its effects on the Plan and potential implications for the Company are not known at this time. Any adjustment for withdrawal liability will be recorded when it is probable that a liability exists and can be reasonably determined. On September 25, 2015, the Plan submitted a Rescue Plan to the United States Department of Treasury (“Department of Treasury”) as permitted under the provisions of the MPRA relating to plans in “critical and declining status.” Under the Rescue Plan, Trustees sought to suspend the pension benefits of retirees and actives in order to save the pension plan from future financial failure. On May 6, 2016, the Department of Treasury notified the Central States Plan that its Rescue Plan application for suspension of benefits had been denied. The Central States Plan Trustees subsequently announced that further action would not be taken regarding the Rescue Plan. The Company is currently unable to reasonably estimate the potential impact of these events on its withdrawal liability. Based on the most recent information available to the Company, management believes that the present value of actuarial accrued liabilities in this multi-employer plan significantly exceeds the value of the assets held in trust to pay benefits. Because SpartanNash is one of a number of employers contributing to this plan, it is difficult to ascertain what the exact amount of the underfunding would be, although management anticipates that the Company’s contributions to this plan will increase each year. Management is not aware of any significant change in funding levels since April 23, 2016. To reduce this underfunding, management expects meaningful increases in expense as a result of required incremental multi-employer pension plan contributions in future years. Any adjustment for withdrawal liability will be recorded when it is probable that a liability exists and can be reasonably determined. The collective bargaining agreement covering associates at the Company’s Westville, Indiana facility was terminated on April 11, 2016 and a Closing Agreement was executed in its place. The collective bargaining agreement covering associates at the Company’s Norfolk, Virginia facility expired on April 23, 2016. The Company and the union representing the covered associates are currently operating under a Contract Extension that will expire on June 26, 2016. The Company and the union representing the covered associates have reached a unanimous and fully recommended tentative agreement that the union intends to vote on or before June 26, 2016. The Agreement, if ratified, will be a three year labor agreement and will run from April 23, 2016 to April 27, 2019. |
Associate Retirement Plans
Associate Retirement Plans | 4 Months Ended |
Apr. 23, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Associate Retirement Plans | Note 9 – Associate Retirement Plans The following table provides the components of net periodic pension and postretirement benefit costs for the 16 weeks ended April 23, 2016 and April 25, 2015: SpartanNash Company Pension Plan SpartanNash Medical Plan April 23, April 25, April 23, April 25, (In thousands) 2016 2015 2016 2015 16 Weeks Ended Service cost $ — $ — $ 58 $ 71 Interest cost 753 1,023 106 125 Amortization of prior service cost — — (49 ) (49 ) Expected return on plan assets (1,324 ) (1,515 ) — — Recognized actuarial net loss 34 255 13 53 Net periodic benefit $ (537 ) $ (237 ) $ 128 $ 200 Settlement expense 213 175 — — Total expense (income) $ (324 ) $ (62 ) $ 128 $ 200 The Company did not make any contributions to the SpartanNash Company Pension Plan during the 16 weeks ended April 23, 2016, and because there are no required payments, does not expect to make any contributions for the fiscal year ending December 31, 2016. In addition to the plans listed above, the Company participates in the Central States Southeast and Southwest Pension Fund (EIN 7456500), the Michigan Conference of Teamsters and Ohio Conference of Teamsters Health and Welfare plans (collectively referred to as “multi-employer plans”), and other company-sponsored defined contribution plans for most associates covered by collective bargaining agreements. With respect to the Company’s participation in the Central States Plan, expense is recognized as contributions are funded. The Company’s contributions for the 16 weeks ended April 23, 2016 and April 25, 2015 were $4.2 million in each period. See Note 8 for further information regarding the Company’s participation in the Central States Plan. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income or Loss | 4 Months Ended |
Apr. 23, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income or Loss | Note 10 – Accumulated Other Comprehensive Income or Loss Accumulated other comprehensive income or loss (“AOCI”) represents the cumulative balance of other comprehensive income (loss), net of tax, as of the end of the reporting period and relates to pension and other postretirement benefits obligation adjustments. Changes in AOCI are as follows: 16 Weeks Ended April 23, April 25, (In thousands) 2016 2015 Balance at beginning of the fiscal year, net of tax $ (11,447 ) $ (11,655 ) Amortization of amounts included in net periodic benefit cost (1) 2 272 Income tax expense (2) (1 ) (103 ) Amounts reclassified out of AOCI, net of tax 1 169 Other comprehensive income (loss), net of tax 1 169 Balance at end of the period, net of tax $ (11,446 ) $ (11,486 ) (1) Reclassified from AOCI into Selling, general and administrative expense. Amortization of amounts included in net periodic benefit cost includes amortization of prior service cost and amortization of net actuarial loss . (2) Reclassified from AOCI into Income tax expense. |
Income Taxes
Income Taxes | 4 Months Ended |
Apr. 23, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11 – Income Taxes The effective income tax rate was 37.7% and 39.0% for the 16 weeks ended April 23, 2016 and April 25, 2015, respectively. The differences from the federal statutory rate are due to states taxes and tax credits in the current year and state taxes in the prior year. |
Share Based Compensation
Share Based Compensation | 4 Months Ended |
Apr. 23, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share Based Compensation | Note 12 – Stock-Based Compensation The Company has a shareholder-approved stock incentive plan that provides for the granting of stock options, stock appreciation rights, restricted stock, restricted stock units, stock awards, and other stock-based and stock-related awards to directors, officers and other key associates. Stock-based compensation expense (net of tax) recognized and included in “Selling, general and administrative expenses” and “Income taxes” in the condensed consolidated statements of earnings was $3.1 million ($0.08 per diluted share) and $2.9 million ($0.08 per diluted share) for the 16 weeks ended April 23, 2016 and April 25, 2015, respectively. The following table summarizes activity in the stock-based compensation plans for the 16 weeks ended April 23, 2016: Weighted Shares Weighted Restricted Average Under Average Stock Grant-Date Options Exercise Price Awards Fair Value Outstanding at January 2, 2016 308,793 $ 21.15 637,555 $ 24.75 Granted — — 296,672 28.30 Exercised/Vested (45,038 ) 20.78 (169,058 ) 24.95 Cancelled/Forfeited — — (8,338 ) 24.65 Outstanding at April 23, 2016 263,755 $ 21.21 756,831 $ 26.10 Vested and expected to vest in the future at April 23, 2016 263,755 $ 21.21 Exercisable at April 23, 2016 263,755 $ 21.21 The Company has not issued any stock options since 2009 and all outstanding options are vested. As of April 23, 2016, total unrecognized compensation costs related to non-vested share-based awards granted under the Company’s stock incentive plans were $8.9 million for restricted stock, and are expected to be recognized over a weighted average period of 2.6 years. All compensation costs related to stock options have been recognized. |
Earnings Per Share
Earnings Per Share | 4 Months Ended |
Apr. 23, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 13 – Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share from continuing operations: 16 Weeks Ended April 23, April 25, (In thousands, except per share amounts) 2016 2015 Numerator: Earnings from continuing operations $ 9,960 $ 10,447 Adjustment for earnings attributable to participating securities (178 ) (189 ) Earnings from continuing operations used in calculating earnings per share $ 9,782 $ 10,258 Denominator: Weighted average shares outstanding, including participating securities 37,488 37,689 Adjustment for participating securities (669 ) (682 ) Shares used in calculating basic earnings per share 36,819 37,007 Effect of dilutive stock options 56 113 Shares used in calculating diluted earnings per share 36,875 37,120 Basic earnings per share from continuing operations $ 0.27 $ 0.28 Diluted earnings per share from continuing operations $ 0.27 $ 0.28 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 4 Months Ended |
Apr. 23, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Note 14 – Supplemental Cash Flow Information Supplemental cash flow information is as follows: 16 Weeks Ended April 23, April 25, (In thousands) 2016 2015 Non-cash financing activities: Issuance of restricted stock to associates and directors $ 8,396 $ 8,274 Capital lease obligations 3,651 — Non-cash investing activities: Capital expenditures included in accounts payable 2,644 2,038 Capital lease asset additions 3,651 — Other supplemental cash flow information: Cash paid for interest 4,479 3,964 |
Reporting Segment Information
Reporting Segment Information | 4 Months Ended |
Apr. 23, 2016 | |
Segment Reporting [Abstract] | |
Reporting Segment Information | Note 15 – Reporting Segment Information The following tables set forth information about the Company by reporting segment: (In thousands) Military Food Distribution Retail Total 16 Weeks Ended April 23, 2016 Net sales to external customers $ 674,523 $ 991,137 $ 613,110 $ 2,278,770 Inter-segment sales — 277,003 — 277,003 Merger integration and acquisition expenses 1 468 428 897 Depreciation and amortization 3,475 6,470 13,424 23,369 Operating earnings (loss) 3,433 25,856 (7,629 ) 21,660 Capital expenditures 2,335 5,522 10,233 18,090 16 Weeks Ended April 25, 2015 Net sales to external customers $ 699,394 $ 986,435 $ 626,854 $ 2,312,683 Inter-segment sales — 281,275 — 281,275 Merger integration and acquisition expenses — 2,187 497 2,684 Depreciation and amortization 3,733 8,536 13,516 25,785 Operating earnings (loss) 6,158 20,249 (2,554 ) 23,853 Capital expenditures 584 3,553 8,587 12,724 (In thousands) April 23, 2016 January 2, 2016 Total Assets Military $ 410,675 $ 415,140 Food Distribution 777,273 750,277 Retail 729,358 747,359 Discontinued operations 3,478 4,487 Total $ 1,920,784 $ 1,917,263 The Company offers a wide variety of grocery products, general merchandise and health and beauty care, pharmacy, fuel, and other items and services. The following table presents sales by type of similar product and services: 16 Weeks Ended (in thousands, except percentages) April 23, 2016 April 25, 2015 Non-perishables (1) $ 1,452,576 63.7 % $ 1,472,711 63.7 % Perishables (2) 694,450 30.5 % 713,034 30.8 % Pharmacy 104,590 4.6 % 92,039 4.0 % Fuel 27,154 1.2 % 34,899 1.5 % Consolidated net sales $ 2,278,770 100.0 % $ 2,312,683 100.0 % (1) Consists primarily of general merchandise, grocery, beverages, snacks, tobacco products and frozen foods. (2) Consists primarily of produce, dairy, meat, bakery, deli, floral and seafood. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies and Basis of Presentation (Policies) | 4 Months Ended |
Apr. 23, 2016 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Standards | In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, “Compensation – Stock Compensation Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 provides for simplification of several aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The new guidance is effective for the Company in the first quarter of its fiscal year ending December 30, 2017. The Company is currently in the process of evaluating the impact of adoption of this standard on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-04, “Liabilities – Extinguishment of Liabilities: Recognition of Breakage for Certain Prepaid Stored-Value Products.” ASU 2016-04 amends the guidance on extinguishing financial liabilities for certain prepaid stored-value products. The new guidance requires entities that sell prepaid stored-value products redeemable for goods, services or cash at third-party merchants to recognize breakage for those liabilities consistent with the breakage guidance outlined in ASU 2014-09, “Revenue from Contracts with Customers.” The new guidance is effective for the Company in the first quarter of its fiscal year ending December 29, 2018. The Company is currently in the process of evaluating the impact of adoption of this standard on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases,” which provides guidance for lease accounting. The new guidance contained in the ASU stipulates that lessees will need to recognize a right-of-use asset and a lease liability for substantially all leases (other than leases that meet the definition of a short-term lease). The liability will be equal to the present value of lease payments. Treatment in the consolidated statements of earnings will be similar to the current treatment of operating and capital leases. The new guidance is effective on a modified retrospective basis for the Company in the first quarter of its fiscal year ending December 28, 2019. The Company is currently in the process of evaluating the impact of adoption of this standard on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, “ . In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which provides guidance for revenue recognition. The new guidance contained in the ASU affects any reporting organization that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14, “Deferral of the Effective Date,” which results in the guidance being effective for the Company in the first quarter of its fiscal year ending December 29, 2018. Adoption is allowed by either the full retrospective or modified retrospective approach. The Company is currently in the process of evaluating the impact of adoption of this standard on its consolidated financial statements. |
Goodwill (Tables)
Goodwill (Tables) | 4 Months Ended |
Apr. 23, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill were as follows: (In thousands) Retail Food Distribution Total Balance at January 2, 2016: Goodwill $ 277,135 $ 132,367 $ 409,502 Accumulated impairment charges (86,600 ) — (86,600 ) Goodwill, net 190,535 132,367 322,902 Other (Note 5) (216 ) — (216 ) Balance at April 23, 2016: Goodwill 276,919 132,367 409,286 Accumulated impairment charges (86,600 ) — (86,600 ) Goodwill, net $ 190,319 $ 132,367 $ 322,686 |
Restructuring Charges and Ass26
Restructuring Charges and Asset Impairment (Tables) | 4 Months Ended |
Apr. 23, 2016 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Activity of Reserves for Closed Properties | The following table provides the activity of reserves for closed properties for the 16 weeks ended April 23, 2016. Reserves for closed properties recorded in the condensed consolidated balance sheets are included in “Other accrued expenses” in Current liabilities and “Other long-term liabilities” in Long-term liabilities based on when the obligations are expected to be paid. Lease and (In thousands) Ancillary Costs Severance Total Balance at January 2, 2016 $ 14,448 $ — $ 14,448 Provision for closing charges 12,453 — 12,453 (a) Provision for severance — 895 895 (b) Changes in estimates (96 ) — (96 ) (c) Accretion expense 186 — 186 Payments (1,156 ) (354 ) (1,510 ) Balance at April 23, 2016 $ 25,835 $ 541 $ 26,376 (a) The provision for closing charges represents initial costs estimated to be incurred for lease and related ancillary costs, net of sublease income, related to store closings in the Retail segment. (b) The provision for severance relates to distribution center closings in the Food Distribution segment. (c) As a result of changes in estimates, goodwill was reduced by $0.2 million as the initial charges for certain stores were adjusted related to previous acquisitions. The remaining change in estimates relates to revised estimates of lease costs associated with a previously closed property. |
Schedule of Restructuring Charges and Asset Impairment | Restructuring and asset impairment charges included in the condensed consolidated statements of earnings consisted of the following: 16 Weeks Ended April 23, April 25, (In thousands) 2016 2015 Asset impairment charges (a) $ — $ 2,353 Provision for closing charges (b) 12,453 6,760 Loss (gain) on sales of assets related to closed facilities (c) 367 (1,540 ) Provision for severance (d) 895 304 Other costs associated with distribution center and store closings (e) 1,769 1,493 Changes in estimates (f) 120 (287 ) Lease termination adjustment (g) (300 ) (1,745 ) $ 15,304 $ 7,338 (a) In 2015, asset impairment charges were incurred in the Retail segment due to the economic and competitive environment of certain stores. (b) The provision for closing charges represents initial costs estimated to be incurred for lease and related ancillary costs, net of sublease income, related to store closings in the Retail segment. (c) The net loss on sales of assets in the 16 weeks ended April 23, 2016, resulted from the sale of a previously closed retail store and food distribution center. The gain on sale of assets in the 16 weeks ended April 25, 2015, resulted from the sale of a closed food distribution center. (d) The provision for severance relates to distribution center closings in the Food Distribution segment. (e) Other closing costs associated with distribution center and store closings represent additional costs incurred in connection with winding down operations at the Food Distribution and Retail segments. (f) The changes in estimates relate to revised estimates of lease and ancillary costs associated with previously closed facilities. The Food Distribution segment realized $120 in the 16 weeks ended April 23, 2016. The Retail segment realized $(287) in the 16 weeks ended April 25, 2015. (g) The lease termination adjustments represent the benefits recognized in connection with lease buyouts on previously closed stores. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 4 Months Ended |
Apr. 23, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Debt Instruments | Long-term debt consists of the following: (In thousands) April 23, 2016 January 2, 2016 Senior secured revolving credit facility, due January 2020 $ 424,841 $ 394,982 Senior secured term loan, due January 2020 32,002 34,842 Capital lease obligations 59,688 58,599 Other, 2.61% - 9.25%, due 2016 - 2020 6,277 6,558 Total debt - Principal 522,808 494,981 Unamortized debt issuance costs (7,611 ) (8,185 ) Total debt 515,197 486,796 Less current portion 19,083 19,003 Total long-term debt $ 496,114 $ 467,793 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 4 Months Ended |
Apr. 23, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Book Value and Estimated Fair Value of Debt Instruments, Excluding Debt Financing Costs | At April 23, 2016 and January 2, 2016 the book value and estimated fair value of the Company’s debt instruments, excluding debt financing costs, were as follows: April 23, January 2, (In thousands) 2016 2016 Book value of debt instruments, excluding debt financing costs: Current maturities of long-term debt and capital lease obligations $ 19,083 $ 19,003 Long-term debt and capital lease obligations 503,725 475,978 Total book value of debt instruments 522,808 494,981 Fair value of debt instruments, excluding debt financing costs 525,217 497,116 Excess of fair value over book value $ 2,409 $ 2,135 |
Associate Retirement Plans (Tab
Associate Retirement Plans (Tables) | 4 Months Ended |
Apr. 23, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Net Periodic Pension and Postretirement Benefit Costs | The following table provides the components of net periodic pension and postretirement benefit costs for the 16 weeks ended April 23, 2016 and April 25, 2015: SpartanNash Company Pension Plan SpartanNash Medical Plan April 23, April 25, April 23, April 25, (In thousands) 2016 2015 2016 2015 16 Weeks Ended Service cost $ — $ — $ 58 $ 71 Interest cost 753 1,023 106 125 Amortization of prior service cost — — (49 ) (49 ) Expected return on plan assets (1,324 ) (1,515 ) — — Recognized actuarial net loss 34 255 13 53 Net periodic benefit $ (537 ) $ (237 ) $ 128 $ 200 Settlement expense 213 175 — — Total expense (income) $ (324 ) $ (62 ) $ 128 $ 200 |
Accumulated Other Comprehensi30
Accumulated Other Comprehensive Income or Loss (Tables) | 4 Months Ended |
Apr. 23, 2016 | |
Equity [Abstract] | |
Schedule Of Accumulated Other Comprehensive Income (Loss) | Changes in AOCI are as follows: 16 Weeks Ended April 23, April 25, (In thousands) 2016 2015 Balance at beginning of the fiscal year, net of tax $ (11,447 ) $ (11,655 ) Amortization of amounts included in net periodic benefit cost (1) 2 272 Income tax expense (2) (1 ) (103 ) Amounts reclassified out of AOCI, net of tax 1 169 Other comprehensive income (loss), net of tax 1 169 Balance at end of the period, net of tax $ (11,446 ) $ (11,486 ) (1) Reclassified from AOCI into Selling, general and administrative expense. Amortization of amounts included in net periodic benefit cost includes amortization of prior service cost and amortization of net actuarial loss . (2) Reclassified from AOCI into Income tax expense. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 4 Months Ended |
Apr. 23, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock-Based Compensation Activity | The following table summarizes activity in the stock-based compensation plans for the 16 weeks ended April 23, 2016: Weighted Shares Weighted Restricted Average Under Average Stock Grant-Date Options Exercise Price Awards Fair Value Outstanding at January 2, 2016 308,793 $ 21.15 637,555 $ 24.75 Granted — — 296,672 28.30 Exercised/Vested (45,038 ) 20.78 (169,058 ) 24.95 Cancelled/Forfeited — — (8,338 ) 24.65 Outstanding at April 23, 2016 263,755 $ 21.21 756,831 $ 26.10 Vested and expected to vest in the future at April 23, 2016 263,755 $ 21.21 Exercisable at April 23, 2016 263,755 $ 21.21 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 4 Months Ended |
Apr. 23, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Share from Continuing Operations | The following table sets forth the computation of basic and diluted earnings per share from continuing operations: 16 Weeks Ended April 23, April 25, (In thousands, except per share amounts) 2016 2015 Numerator: Earnings from continuing operations $ 9,960 $ 10,447 Adjustment for earnings attributable to participating securities (178 ) (189 ) Earnings from continuing operations used in calculating earnings per share $ 9,782 $ 10,258 Denominator: Weighted average shares outstanding, including participating securities 37,488 37,689 Adjustment for participating securities (669 ) (682 ) Shares used in calculating basic earnings per share 36,819 37,007 Effect of dilutive stock options 56 113 Shares used in calculating diluted earnings per share 36,875 37,120 Basic earnings per share from continuing operations $ 0.27 $ 0.28 Diluted earnings per share from continuing operations $ 0.27 $ 0.28 |
Supplemental Cash Flow Inform33
Supplemental Cash Flow Information (Tables) | 4 Months Ended |
Apr. 23, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | Supplemental cash flow information is as follows: 16 Weeks Ended April 23, April 25, (In thousands) 2016 2015 Non-cash financing activities: Issuance of restricted stock to associates and directors $ 8,396 $ 8,274 Capital lease obligations 3,651 — Non-cash investing activities: Capital expenditures included in accounts payable 2,644 2,038 Capital lease asset additions 3,651 — Other supplemental cash flow information: Cash paid for interest 4,479 3,964 |
Reporting Segment Information (
Reporting Segment Information (Tables) | 4 Months Ended |
Apr. 23, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Operating Segment | The following tables set forth information about the Company by reporting segment: (In thousands) Military Food Distribution Retail Total 16 Weeks Ended April 23, 2016 Net sales to external customers $ 674,523 $ 991,137 $ 613,110 $ 2,278,770 Inter-segment sales — 277,003 — 277,003 Merger integration and acquisition expenses 1 468 428 897 Depreciation and amortization 3,475 6,470 13,424 23,369 Operating earnings (loss) 3,433 25,856 (7,629 ) 21,660 Capital expenditures 2,335 5,522 10,233 18,090 16 Weeks Ended April 25, 2015 Net sales to external customers $ 699,394 $ 986,435 $ 626,854 $ 2,312,683 Inter-segment sales — 281,275 — 281,275 Merger integration and acquisition expenses — 2,187 497 2,684 Depreciation and amortization 3,733 8,536 13,516 25,785 Operating earnings (loss) 6,158 20,249 (2,554 ) 23,853 Capital expenditures 584 3,553 8,587 12,724 (In thousands) April 23, 2016 January 2, 2016 Total Assets Military $ 410,675 $ 415,140 Food Distribution 777,273 750,277 Retail 729,358 747,359 Discontinued operations 3,478 4,487 Total $ 1,920,784 $ 1,917,263 |
Summary of Sales by Type of Similar Products and Services | The following table presents sales by type of similar product and services: 16 Weeks Ended (in thousands, except percentages) April 23, 2016 April 25, 2015 Non-perishables (1) $ 1,452,576 63.7 % $ 1,472,711 63.7 % Perishables (2) 694,450 30.5 % 713,034 30.8 % Pharmacy 104,590 4.6 % 92,039 4.0 % Fuel 27,154 1.2 % 34,899 1.5 % Consolidated net sales $ 2,278,770 100.0 % $ 2,312,683 100.0 % (1) Consists primarily of general merchandise, grocery, beverages, snacks, tobacco products and frozen foods. (2) Consists primarily of produce, dairy, meat, bakery, deli, floral and seafood. |
Recently Issued Accounting St35
Recently Issued Accounting Standards - Additional Information (Detail) $ in Millions | Jan. 02, 2016USD ($) |
Accounting Standards Update Twenty Fifteen Zero Three [Member] | Other Assets, Net and Long-term Debt [Member] | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Decrease in assets and liabilities for fiscal 2016 | $ 8.2 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - Dan's [Member] $ in Millions | Jun. 16, 2015USD ($)Store |
Business Acquisition [Line Items] | |
Total purchase price of assets | $ | $ 32.6 |
Number of stores acquired | Store | 6 |
Goodwill - Summary of Changes i
Goodwill - Summary of Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 4 Months Ended | |
Apr. 23, 2016 | Jan. 02, 2016 | |
Goodwill [Line Items] | ||
Goodwill | $ 409,286 | $ 409,502 |
Accumulated impairment charges | (86,600) | (86,600) |
Goodwill, net | 322,686 | 322,902 |
Other (Note 5) | (216) | |
Retail [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 276,919 | 277,135 |
Accumulated impairment charges | (86,600) | (86,600) |
Goodwill, net | 190,319 | 190,535 |
Other (Note 5) | (216) | |
Food Distribution [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 132,367 | 132,367 |
Goodwill, net | $ 132,367 | $ 132,367 |
Restructuring Charges and Ass38
Restructuring Charges and Asset Impairment - Schedule of Activity of Reserves for Closed Properties (Detail) - USD ($) $ in Thousands | 4 Months Ended | |
Apr. 23, 2016 | Apr. 25, 2015 | |
Restructuring Cost And Reserve [Line Items] | ||
Beginning balance | $ 14,448 | |
Provision for severance | 895 | $ 304 |
Changes in estimates | (96) | |
Accretion expense | 186 | |
Payments | (1,510) | |
Ending balance | 26,376 | |
Business Restructuring Reserves [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Provision for closing charges | 12,453 | $ 6,760 |
Lease and Ancillary Costs [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Beginning balance | 14,448 | |
Changes in estimates | (96) | |
Accretion expense | 186 | |
Payments | (1,156) | |
Ending balance | 25,835 | |
Lease and Ancillary Costs [Member] | Business Restructuring Reserves [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Provision for closing charges | 12,453 | |
Severance [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Provision for severance | 895 | |
Payments | (354) | |
Ending balance | $ 541 |
Restructuring Charges and Ass39
Restructuring Charges and Asset Impairment - Schedule of Activity of Reserves for Closed Properties (Parenthetical) (Detail) $ in Millions | 4 Months Ended |
Apr. 23, 2016USD ($) | |
Restructuring And Related Activities [Abstract] | |
Reduction in goodwill | $ (0.2) |
Restructuring Charges and Ass40
Restructuring Charges and Asset Impairment - Schedule of Restructuring Charges and Asset Impairment (Detail) - USD ($) $ in Thousands | 4 Months Ended | |
Apr. 23, 2016 | Apr. 25, 2015 | |
Restructuring Cost And Reserve [Line Items] | ||
Asset impairment charges | $ 2,353 | |
Loss (gain) on sales of assets related to closed facilities | $ 367 | (1,540) |
Provision for severance | 895 | 304 |
Other costs associated with distribution center and store closings | 1,769 | 1,493 |
Changes in estimates | 120 | (287) |
Lease termination adjustment | (300) | (1,745) |
Restructuring and asset impairment | 15,304 | 7,338 |
Business Restructuring Reserves [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Provision for closing charges | $ 12,453 | $ 6,760 |
Restructuring Charges and Ass41
Restructuring Charges and Asset Impairment - Schedule of Restructuring Charges and Asset Impairment (Parenthetical) (Detail) - USD ($) $ in Thousands | 4 Months Ended | |
Apr. 23, 2016 | Apr. 25, 2015 | |
Restructuring Cost And Reserve [Line Items] | ||
Changes in estimates | $ (96) | |
Food Distribution Segment [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Changes in estimates | $ 120 | |
Retail [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Changes in estimates | $ (287) |
Long Term Debt - Summary of Deb
Long Term Debt - Summary of Debt Instruments (Detail) - USD ($) $ in Thousands | Apr. 23, 2016 | Jan. 02, 2016 |
Debt Disclosure [Abstract] | ||
Senior secured revolving credit facility, due January 2020 | $ 424,841 | $ 394,982 |
Senior secured term loan, due January 2020 | 32,002 | 34,842 |
Capital lease obligations | 59,688 | 58,599 |
Other, 2.61% - 9.25%, due 2016 - 2020 | 6,277 | 6,558 |
Total debt - Principal | 522,808 | 494,981 |
Unamortized debt issuance costs | (7,611) | (8,185) |
Total debt | 515,197 | 486,796 |
Less current portion | 19,083 | 19,003 |
Total long-term debt | $ 496,114 | $ 467,793 |
Long Term Debt - Summary of D43
Long Term Debt - Summary of Debt Instruments (Parenthetical) (Detail) | 4 Months Ended | 12 Months Ended |
Apr. 23, 2016 | Jan. 02, 2016 | |
Senior Secured Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Notes maturity date | Jan. 9, 2020 | Jan. 9, 2020 |
Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate Range, Minimum | 2.61% | 2.61% |
Interest Rate Range, Maximum | 9.25% | 9.25% |
Other debt, due date, start | 2,016 | 2,016 |
Other debt, due date, end | 2,020 | 2,020 |
Senior Secured Revolving Credit Facility | Revolving credit agreement [Member] | ||
Debt Instrument [Line Items] | ||
Notes maturity date | Jan. 9, 2020 | Jan. 9, 2020 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Book Value and Estimated Fair Value of Debt Instruments, Excluding Debt Financing Costs (Detail) - USD ($) $ in Thousands | Apr. 23, 2016 | Jan. 02, 2016 |
Book value of debt instruments, excluding debt financing costs: | ||
Current maturities of long-term debt and capital lease obligations | $ 19,083 | $ 19,003 |
Long-term debt and capital lease obligations | 503,725 | 475,978 |
Total debt - Principal | 522,808 | 494,981 |
Fair value of debt instruments, excluding debt financing costs | 525,217 | 497,116 |
Excess of fair value over book value | $ 2,409 | $ 2,135 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) $ in Thousands | 4 Months Ended |
Apr. 25, 2015USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Impairment charges | $ 2,353 |
Fair Value Measurements Nonrecurring [Member] | Significant unobservable inputs (Level 3) [Member] | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Long-lived assets | 5,600 |
Long-lived assets measured fair value on nonrecurring basis | 3,200 |
Impairment charges | $ 2,400 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - Norfolk, Virginia facility | 4 Months Ended |
Apr. 23, 2016 | |
Commitments And Contingencies [Line Items] | |
Collective bargaining agreement term | 3 years |
Collective bargaining agreement term, start date | Apr. 23, 2016 |
Collective bargaining agreement term, end date | Apr. 27, 2019 |
Collective bargaining agreement, expiration date of contract extension | Jun. 26, 2016 |
Associate Retirement Plans - Co
Associate Retirement Plans - Components of Net Periodic Pension and Postretirement Benefit Cost (Detail) - USD ($) $ in Thousands | 4 Months Ended | |
Apr. 23, 2016 | Apr. 25, 2015 | |
SpartanNash Company Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 753 | $ 1,023 |
Expected return on plan assets | (1,324) | (1,515) |
Recognized actuarial net loss | 34 | 255 |
Net periodic benefit | (537) | (237) |
Settlement expense | 213 | 175 |
Total expense (income) | (324) | (62) |
SpartanNash Medical Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 58 | 71 |
Interest cost | 106 | 125 |
Amortization of prior service cost | (49) | (49) |
Recognized actuarial net loss | 13 | 53 |
Net periodic benefit | 128 | 200 |
Total expense (income) | $ 128 | $ 200 |
Associate Retirement Plans - Ad
Associate Retirement Plans - Additional Information (Detail) - USD ($) | 4 Months Ended | 12 Months Ended | |
Apr. 23, 2016 | Apr. 25, 2015 | Dec. 31, 2016 | |
SpartanNash Company Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Standard pension funding carryover | $ 0 | ||
SpartanNash Company Pension Plan [Member] | Forecast [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Standard pension funding carryover | $ 0 | ||
Central States, Southeast and Southwest Areas Pension Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension contributions during last plan year | $ 4,200,000 | $ 4,200,000 |
Accumulated Other Comprehensi49
Accumulated Other Comprehensive Income or Loss - Schedule Of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 4 Months Ended | |
Apr. 23, 2016 | Apr. 25, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Balance at beginning of the fiscal year, net of tax | $ (11,447) | $ (11,655) |
Amortization of amounts included in net periodic benefit cost | 2 | 272 |
Income tax expense | (1) | (103) |
Amounts reclassified out of AOCI, net of tax | 1 | 169 |
Other comprehensive income (loss), net of tax | 1 | 169 |
Balance at end of the period, net of tax | $ (11,446) | $ (11,486) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 4 Months Ended | |
Apr. 23, 2016 | Apr. 25, 2015 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 37.70% | 39.00% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 4 Months Ended | |
Apr. 23, 2016 | Apr. 25, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation expense, Net of Tax | $ 3.1 | $ 2.9 |
Share based compensation expense Per diluted share, Net of Tax | $ 0.08 | $ 0.08 |
Restricted Stock Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 8.9 | |
Unrecognized compensation cost, weighted average period of recognition | 2 years 7 months 6 days |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-Based Compensation Activity (Detail) | 4 Months Ended |
Apr. 23, 2016$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Shares Under Options, Outstanding, Beginning balance | shares | 308,793 |
Shares Under Options, Exercised/Vested | shares | (45,038) |
Shares Under Options, Outstanding, Ending balance | shares | 263,755 |
Shares Under Options, Vested and expected to vest in the future at April 23, 2016 | shares | 263,755 |
Shares Under Options, Exercisable | shares | 263,755 |
Weighted Average Exercise Price, Option outstanding, Beginning balance | $ / shares | $ 21.15 |
Weighted Average Exercise Price, Exercised/Vested | $ / shares | 20.78 |
Weighted Average Exercise Price, Options outstanding, Ending balance | $ / shares | 21.21 |
Weighted Average Exercise Price, Vested and expected to vest in the future at April 23, 2016 | $ / shares | 21.21 |
Weighted Average Exercise Price, Exercisable | $ / shares | $ 21.21 |
Restricted Stock Awards, Outstanding, Beginning balance | shares | 637,555 |
Restricted Stock Awards, Granted | shares | 296,672 |
Restricted Stock Awards, Exercised/Vested | shares | (169,058) |
Restricted Stock Awards, Cancelled/Forfeited | shares | (8,338) |
Restricted Stock Awards, Outstanding, Ending balance | shares | 756,831 |
Weighted Average Grant-Date Fair Value, Beginning balance | $ / shares | $ 24.75 |
Weighted Average Grant-Date Fair Value, Granted | $ / shares | 28.30 |
Weighted Average Grant-Date Fair Value, Exercised/Vested | $ / shares | 24.95 |
Weighted Average Grant-Date Fair Value, Cancelled/Forfeited | $ / shares | 24.65 |
Weighted Average Grant-Date Fair Value, Ending balance | $ / shares | $ 26.10 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of Basic and Diluted Earnings Per Share from Continuing Operations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 4 Months Ended | |
Apr. 23, 2016 | Apr. 25, 2015 | |
Numerator: | ||
Earnings from continuing operations | $ 9,960 | $ 10,447 |
Adjustment for earnings attributable to participating securities | (178) | (189) |
Earnings from continuing operations used in calculating earnings per share | $ 9,782 | $ 10,258 |
Denominator: | ||
Weighted average shares outstanding, including participating securities | 37,488 | 37,689 |
Adjustment for participating securities | (669) | (682) |
Shares used in calculating basic earnings per share | 36,819 | 37,007 |
Effect of dilutive stock options | 56 | 113 |
Shares used in calculating diluted earnings per share | 36,875 | 37,120 |
Basic earnings per share from continuing operations | $ 0.27 | $ 0.28 |
Diluted earnings per share from continuing operations | $ 0.27 | $ 0.28 |
Supplemental Cash Flow Inform54
Supplemental Cash Flow Information - Schedule of Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands | 4 Months Ended | |
Apr. 23, 2016 | Apr. 25, 2015 | |
Non-cash financing activities: | ||
Issuance of restricted stock to associates and directors | $ 8,396 | $ 8,274 |
Capital lease obligations | 3,651 | |
Non-cash investing activities: | ||
Capital expenditures included in accounts payable | 2,644 | 2,038 |
Capital lease asset additions | 3,651 | |
Other supplemental cash flow information: | ||
Cash paid for interest | $ 4,479 | $ 3,964 |
Reporting Segment Information -
Reporting Segment Information - Schedule of Segment Reporting Information, by Operating Segment (Detail) - USD ($) $ in Thousands | 4 Months Ended | ||
Apr. 23, 2016 | Apr. 25, 2015 | Jan. 02, 2016 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 2,278,770 | $ 2,312,683 | |
Merger integration and acquisition expenses | 897 | 2,684 | |
Depreciation and amortization | 23,369 | 25,785 | |
Operating earnings (loss) | 21,660 | 23,853 | |
Capital expenditures | 18,090 | 12,724 | |
Total Assets | 1,920,784 | $ 1,917,263 | |
Discontinued Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 3,478 | 4,487 | |
Military [Member] | |||
Segment Reporting Information [Line Items] | |||
Merger integration and acquisition expenses | 1 | ||
Depreciation and amortization | 3,475 | 3,733 | |
Operating earnings (loss) | 3,433 | 6,158 | |
Capital expenditures | 2,335 | 584 | |
Total Assets | 410,675 | 415,140 | |
Food Distribution [Member] | |||
Segment Reporting Information [Line Items] | |||
Merger integration and acquisition expenses | 468 | 2,187 | |
Depreciation and amortization | 6,470 | 8,536 | |
Operating earnings (loss) | 25,856 | 20,249 | |
Capital expenditures | 5,522 | 3,553 | |
Total Assets | 777,273 | 750,277 | |
Retail [Member] | |||
Segment Reporting Information [Line Items] | |||
Merger integration and acquisition expenses | 428 | 497 | |
Depreciation and amortization | 13,424 | 13,516 | |
Operating earnings (loss) | (7,629) | (2,554) | |
Capital expenditures | 10,233 | 8,587 | |
Total Assets | 729,358 | $ 747,359 | |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,278,770 | 2,312,683 | |
Operating Segments [Member] | Military [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 674,523 | 699,394 | |
Operating Segments [Member] | Food Distribution [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 991,137 | 986,435 | |
Operating Segments [Member] | Retail [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 613,110 | 626,854 | |
Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | (277,003) | (281,275) | |
Intersegment Eliminations [Member] | Food Distribution [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ (277,003) | $ (281,275) |
Reporting Segment Information56
Reporting Segment Information - Summary of Sales by Type of Similar Products and Services (Detail) - USD ($) $ in Thousands | 4 Months Ended | |
Apr. 23, 2016 | Apr. 25, 2015 | |
Revenue from External Customer [Line Items] | ||
Consolidated net sales | $ 2,278,770 | $ 2,312,683 |
Sales Revenue [Member] | Product Concentration Risk [Member] | ||
Revenue from External Customer [Line Items] | ||
Consolidated net sales, Percentage | 100.00% | 100.00% |
Fuel [Member] | ||
Revenue from External Customer [Line Items] | ||
Consolidated net sales | $ 27,154 | $ 34,899 |
Fuel [Member] | Sales Revenue [Member] | Product Concentration Risk [Member] | ||
Revenue from External Customer [Line Items] | ||
Consolidated net sales, Percentage | 1.20% | 1.50% |
Non Perishables [Member] | ||
Revenue from External Customer [Line Items] | ||
Consolidated net sales | $ 1,452,576 | $ 1,472,711 |
Non Perishables [Member] | Sales Revenue [Member] | Product Concentration Risk [Member] | ||
Revenue from External Customer [Line Items] | ||
Consolidated net sales, Percentage | 63.70% | 63.70% |
Perishables [Member] | ||
Revenue from External Customer [Line Items] | ||
Consolidated net sales | $ 694,450 | $ 713,034 |
Perishables [Member] | Sales Revenue [Member] | Product Concentration Risk [Member] | ||
Revenue from External Customer [Line Items] | ||
Consolidated net sales, Percentage | 30.50% | 30.80% |
Pharmacy [Member] | ||
Revenue from External Customer [Line Items] | ||
Consolidated net sales | $ 104,590 | $ 92,039 |
Pharmacy [Member] | Sales Revenue [Member] | Product Concentration Risk [Member] | ||
Revenue from External Customer [Line Items] | ||
Consolidated net sales, Percentage | 4.60% | 4.00% |