Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 30, 2017 | Feb. 23, 2018 | Jul. 14, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 30, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SPTN | ||
Entity Registrant Name | SPARTANNASH COMPANY | ||
Entity Central Index Key | 877,422 | ||
Current Fiscal Year End Date | --12-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 36,048,591 | ||
Entity Public Float | $ 955,521,432 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 15,667 | $ 24,351 |
Accounts and notes receivable, net | 344,057 | 291,568 |
Inventories, net | 597,162 | 539,857 |
Prepaid expenses and other current assets | 47,400 | 37,187 |
Property and equipment held for sale | 521 | |
Total current assets | 1,004,286 | 893,484 |
Property and equipment, net | 600,240 | 559,722 |
Goodwill | 178,648 | 322,686 |
Intangible assets, net | 134,430 | 60,202 |
Other assets, net | 138,193 | 94,242 |
Total assets | 2,055,797 | 1,930,336 |
Current liabilities | ||
Accounts payable | 376,977 | 372,432 |
Accrued payroll and benefits | 65,156 | 75,333 |
Other accrued expenses | 43,252 | 40,788 |
Current maturities of long-term debt and capital lease obligations | 9,196 | 17,424 |
Total current liabilities | 494,581 | 505,977 |
Long-term liabilities | ||
Deferred income taxes | 42,050 | 123,243 |
Postretirement benefits | 15,687 | 16,266 |
Other long-term liabilities | 40,774 | 45,768 |
Long-term debt and capital lease obligations | 740,755 | 413,675 |
Total long-term liabilities | 839,266 | 598,952 |
Commitments and contingencies (Note 9) | ||
Shareholders’ equity | ||
Common stock, voting, no par value; 100,000 shares authorized; 36,466 and 37,539 shares outstanding | 497,093 | 521,984 |
Preferred stock, no par value, 10,000 shares authorized; no shares outstanding | ||
Accumulated other comprehensive loss | (15,136) | (11,437) |
Retained earnings | 239,993 | 314,860 |
Total shareholders’ equity | 721,950 | 825,407 |
Total liabilities and shareholders’ equity | $ 2,055,797 | $ 1,930,336 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 30, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares outstanding | 36,466,000 | 37,539,000 |
Preferred stock, par value | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Income Statement [Abstract] | |||
Net sales | $ 8,128,082 | $ 7,734,600 | $ 7,651,973 |
Cost of sales | 6,983,173 | 6,623,106 | 6,536,291 |
Gross profit | 1,144,909 | 1,111,494 | 1,115,682 |
Operating expenses | |||
Selling, general and administrative | 1,014,665 | 963,652 | 975,572 |
Merger/acquisition and integration | 8,101 | 6,959 | 8,433 |
Goodwill impairment | 189,027 | ||
Restructuring charges and asset impairment | 39,432 | 32,116 | 8,802 |
Total operating expenses | 1,251,225 | 1,002,727 | 992,807 |
Operating (loss) earnings | (106,316) | 108,767 | 122,875 |
Other (income) and expenses | |||
Interest expense | 25,343 | 19,082 | 21,820 |
Loss on debt extinguishment | 413 | 247 | 1,171 |
Other, net | (428) | (525) | (375) |
Total other expenses, net | 25,328 | 18,804 | 22,616 |
(Loss) earnings before income taxes and discontinued operations | (131,644) | 89,963 | 100,259 |
Income taxes | (79,027) | 32,907 | 37,093 |
(Loss) earnings from continuing operations | (52,617) | 57,056 | 63,166 |
Loss from discontinued operations, net of taxes | (228) | (228) | (456) |
Net (loss) earnings | $ (52,845) | $ 56,828 | $ 62,710 |
Basic (loss) earnings per share: | |||
(Loss) earnings from continuing operations | $ (1.41) | $ 1.52 | $ 1.68 |
Loss from discontinued operations | (0.01) | ||
Net (loss) earnings | (1.41) | 1.52 | 1.67 |
Diluted (loss) earnings per share: | |||
(Loss) earnings from continuing operations | (1.41) | 1.52 | 1.67 |
Loss from discontinued operations | (0.01) | (0.01) | |
Net (loss) earnings | $ (1.41) | $ 1.51 | $ 1.66 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net (loss) earnings | $ (52,845) | $ 56,828 | $ 62,710 |
Other comprehensive (loss) income, before tax | |||
Pension and postretirement liability adjustment | (1,649) | 14 | 429 |
Total other comprehensive (loss) income, before tax | (1,649) | 14 | 429 |
Income tax benefit (expense) related to items of other comprehensive income | 632 | (4) | (221) |
Total other comprehensive (loss) income, after tax | (1,017) | 10 | 208 |
Comprehensive (loss) income | $ (53,862) | $ 56,838 | $ 62,918 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] |
Balance, value at Jan. 03, 2015 | $ 747,253 | $ 520,791 | $ (11,655) | $ 238,117 |
Balance, shares at Jan. 03, 2015 | 37,524 | |||
Net (loss) earnings | 62,710 | 62,710 | ||
Other comprehensive income (loss) | 208 | 208 | ||
Dividends | (20,299) | (20,299) | ||
Share repurchase, value | (9,000) | $ (9,000) | ||
Share repurchase, shares | (282) | |||
Stock-based employee compensation | 7,240 | $ 7,240 | ||
Issuance of common stock and related tax benefit on stock option exercises and stock bonus plan and from deferred compensation plan, value | 4,279 | $ 4,279 | ||
Issuance of common stock and related tax benefit on stock option exercises and stock bonus plan and from deferred compensation plan, shares | 223 | |||
Issuance of restricted stock | 1,114 | $ 1,114 | ||
Issuances of restricted stock, shares | 315 | |||
Cancellations of stock-based awards, value | (2,726) | $ (2,726) | ||
Cancellations of stock-based awards, shares | (180) | |||
Balance, value at Jan. 02, 2016 | 790,779 | $ 521,698 | (11,447) | 280,528 |
Balance, shares at Jan. 02, 2016 | 37,600 | |||
Net (loss) earnings | 56,828 | 56,828 | ||
Other comprehensive income (loss) | 10 | 10 | ||
Dividends | (22,496) | (22,496) | ||
Share repurchase, value | (9,000) | $ (9,000) | ||
Share repurchase, shares | (396) | |||
Stock-based employee compensation | 7,936 | $ 7,936 | ||
Issuance of common stock and related tax benefit on stock option exercises and stock bonus plan and from deferred compensation plan, value | 3,697 | $ 3,697 | ||
Issuance of common stock and related tax benefit on stock option exercises and stock bonus plan and from deferred compensation plan, shares | 144 | |||
Issuance of restricted stock | (118) | $ (118) | ||
Issuances of restricted stock, shares | 315 | |||
Cancellations of stock-based awards, value | (2,229) | $ (2,229) | ||
Cancellations of stock-based awards, shares | (124) | |||
Balance, value at Dec. 31, 2016 | $ 825,407 | $ 521,984 | (11,437) | 314,860 |
Balance, shares at Dec. 31, 2016 | 37,539 | 37,539 | ||
Net (loss) earnings | $ (52,845) | (52,845) | ||
Other comprehensive income (loss) | (1,017) | (1,017) | ||
Reclassification of stranded tax effects in AOCI (Note 1) | (2,682) | (2,682) | 2,682 | |
Dividends | (24,704) | (24,704) | ||
Share repurchase, value | (34,995) | $ (34,995) | ||
Share repurchase, shares | (1,367) | |||
Stock-based employee compensation | 9,611 | $ 9,611 | ||
Issuance of common stock and related tax benefit on stock option exercises and stock bonus plan and from deferred compensation plan, value | 3,697 | $ 3,697 | ||
Issuance of common stock and related tax benefit on stock option exercises and stock bonus plan and from deferred compensation plan, shares | 172 | |||
Issuances of restricted stock, shares | 296 | |||
Cancellations of stock-based awards, value | (3,204) | $ (3,204) | ||
Cancellations of stock-based awards, shares | (174) | |||
Balance, value at Dec. 30, 2017 | $ 721,950 | $ 497,093 | $ (15,136) | $ 239,993 |
Balance, shares at Dec. 30, 2017 | 36,466 | 36,466 |
CONSOLIDATED STATEMENTS OF SHA7
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Statement Of Stockholders Equity [Abstract] | |||
Dividends per share | $ 0.66 | $ 0.60 | $ 0.54 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Cash flows from operating activities | |||
Net (loss) earnings | $ (52,845) | $ 56,828 | $ 62,710 |
Loss from discontinued operations, net of tax | 228 | 228 | 456 |
(Loss) earnings from continuing operations | (52,617) | 57,056 | 63,166 |
Adjustments to reconcile net (loss) earnings to net cash provided by operating activities: | |||
Non-cash restructuring, goodwill/asset impairment and other charges | 227,847 | 32,191 | 9,755 |
Loss on debt extinguishment | 413 | 247 | 1,171 |
Depreciation and amortization | 84,390 | 79,183 | 84,905 |
LIFO expense (income) | 2,898 | (1,919) | (1,201) |
Postretirement benefits expense (income) | 1,347 | 1,780 | (41) |
Deferred taxes on income | (79,921) | 6,761 | 2,512 |
Stock-based compensation expense | 9,611 | 7,936 | 7,240 |
Other, net | (160) | (254) | (22) |
Changes in operating assets and liabilities: | |||
Accounts receivable | (25,276) | 30,537 | (33,063) |
Inventories | (48,478) | (18,456) | 59,473 |
Prepaid expenses and other assets | (8,418) | (45,506) | (545) |
Accounts payable | (24,477) | 21,946 | 30,250 |
Accrued payroll and benefits | (17,253) | 1,193 | 823 |
Other accrued expenses and other liabilities | (17,063) | (15,504) | (900) |
Net cash provided by operating activities | 52,843 | 157,191 | 223,523 |
Cash flows from investing activities | |||
Purchases of property and equipment | (70,906) | (73,429) | (79,394) |
Net proceeds from the sale of assets | 4,024 | 5,989 | 20,928 |
Acquisitions, net of cash acquired | (226,939) | (41,517) | |
Loans to customers | (10,328) | (1,962) | (1,450) |
Payments from customers on loans | 3,948 | 2,183 | 1,733 |
Proceeds from company owned life insurance | 5,004 | ||
Other | (15,192) | (1,008) | (604) |
Net cash used in investing activities | (315,393) | (68,227) | (95,300) |
Cash flows from financing activities | |||
Proceeds from senior secured credit facility | 1,461,902 | 1,341,215 | 1,089,979 |
Payments on senior secured credit facility | (1,140,491) | (1,384,958) | (1,110,344) |
Share repurchase | (34,995) | (9,000) | (9,000) |
Net payments related to stock-based award activities | (3,204) | (2,229) | (2,726) |
Prepayment of senior notes | (50,000) | ||
Debt extinguishment costs | (831) | ||
Repayment of other long-term debt | (7,456) | (9,146) | (10,157) |
Financing fees paid | (256) | (2,498) | (2,013) |
Proceeds from exercise of stock options | 3,207 | 2,518 | 3,661 |
Dividends paid | (24,704) | (22,496) | (20,299) |
Net cash provided by (used in) financing activities | 254,003 | (86,594) | (111,730) |
Cash flows from discontinued operations | |||
Net cash used in operating activities | (137) | (738) | (740) |
Net cash provided by investing activities | 523 | ||
Net cash used in discontinued operations | (137) | (738) | (217) |
Net (decrease) increase in cash and cash equivalents | (8,684) | 1,632 | 16,276 |
Cash and cash equivalents at beginning of year | 24,351 | 22,719 | 6,443 |
Cash and cash equivalents at end of year | $ 15,667 | $ 24,351 | $ 22,719 |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Basis of Presentation | 12 Months Ended |
Dec. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Basis of Presentation | Note 1 – Summary of Significant Accounting Policies and Basis of Presentation Principles of Consolidation: The consolidated 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”). Intercompany accounts and transactions have been eliminated. Fiscal Year: The Company’s fiscal year end is the Saturday nearest to December 31. The following discussion is as of and for the fiscal years ending or ended December 29, 2018 ("2018"), December 30, 2017 (“2017” or “current year”), December 31, 2016 (“2016” or “prior year”) and January 2, 2016 (“2015”), all of which include 52 weeks. All fiscal quarters are 12 weeks, except for the Company’s first quarter, which is 16 weeks. Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported therein. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods might differ from those estimates. Revenue Recognition: The Company recognizes revenue when the sales price is fixed or determinable, collectability is reasonably assured, and the customer takes possession of the merchandise. The Military segment recognizes revenues upon the delivery of the product to the commissary or commissaries designated by the Defense Commissary Agency (DeCA), or in the case of overseas commissaries, when the product is delivered to the port designated by DeCA, which is when DeCA takes possession of the merchandise and bears the responsibility for shipping the product to the commissary or overseas warehouse. Revenues from consignment sales are included in the Company’s reported sales on a net basis. The Food Distribution segment recognizes revenues when products are delivered or ancillary services are provided. Sales and excise taxes are excluded from revenue. The Retail segment recognizes revenues from the sale of products at the point of sale. Based upon the nature of the products the Company sells, its customers have limited rights of return which are immaterial. Discounts provided by the Company to customers at the time of sale are recognized as a reduction in sales as the products are sold. The Company does not recognize a sale when it awards customer loyalty points or sells gift cards and gift certificates; rather, a sale is recognized when the customer loyalty points, gift card or gift certificate are redeemed to purchase product. Sales taxes collected from customers are remitted to the appropriate taxing jurisdictions and are excluded from sales revenue as the Company considers itself a pass-through conduit for collecting and remitting sales taxes. Cost of Sales: Cost of sales represents the cost of inventory sold during the period, which for all non-production operations includes purchase costs, in-bound freight, physical inventory adjustments, markdowns and promotional allowances and excludes warehousing costs, depreciation and other administrative expenses. For the Company’s food processing operations, cost of sales includes direct product and production costs, inbound freight, purchasing and receiving costs, utilities, depreciation, and other indirect production costs and excludes out-bound freight and other administrative expenses. As a result, the Company’s cost of sales and gross profit may not be identical to similarly titled measures reported by other companies. Vendor allowances and credits that relate to the Company’s buying and merchandising activities consist primarily of promotional allowances, which are generally allowances on purchased quantities and, to a lesser extent, slotting allowances, which are billed to vendors for the Company’s merchandising costs such as setting up warehouse infrastructure. Vendor allowances are recognized as a reduction in cost of sales when the related product is sold. Lump sum payments received for multi-year contracts are amortized over the life of the contracts based on contractual terms. The distribution segments include shipping and handling costs in the selling, general and administrative section of operating expenses on the consolidated statement of operations. Cash and Cash Equivalents: Cash and cash equivalents consist of cash and highly liquid investments with an original maturity of three months or less at the date of purchase. Accounts and Notes Receivable: Accounts and notes receivable are shown net of allowances for credit losses of $2.0 million and $6.7 million as of December 30, 2017 and December 31, 2016, respectively. The Company evaluates the adequacy of its allowances by analyzing the aging of receivables, customer financial condition, historical collection experience, the value of collateral and other economic and industry factors. Actual collections may differ from historical experience, and if economic, business or customer conditions deteriorate significantly, adjustments to these reserves may be required. When the Company becomes aware of factors that indicate a change in a specific customer’s ability to meet its financial obligations, the Company records a specific reserve for credit losses. Operating results include bad debt expense of $1.5 million, $1.4 million and $2.1 million for 2017, 2016 and 2015, respectively. Inventory Valuation: Inventories are valued at the lower of cost or market. Approximately 86.9% and 86.7% of the Company’s inventories were valued on the last-in, first-out (LIFO) method at December 30, 2017 and December 31, 2016, respectively. If replacement cost had been used, inventories would have been $50.4 million and $47.6 million higher at December 30, 2017 and December 31, 2016, respectively. The replacement cost method utilizes the most current unit purchase cost to calculate the value of inventories. During 2017, 2016 and 2015, certain inventory quantities were reduced. The reductions resulted in liquidation of LIFO inventory carried at lower costs prevailing in prior years, the effect of which decreased the LIFO provision in 2017, 2016 and 2015 by $0.2 million, $0.2 million and $0.6 million, respectively. The Company accounts for its Food Distribution and Military inventory using a perpetual system and utilizes the retail inventory method (“RIM”) to value inventory for center store products in the Retail segment. Under RIM, inventory is stated at cost with cost of sales and gross margin calculated by applying a cost ratio to the retail value of inventories. Fresh, pharmacy and fuel products are accounted for at cost in the Retail segment. The Company evaluates inventory shortages throughout the year based on actual physical counts in its facilities. The Company records allowances for inventory shortages based on the results of recent physical counts to provide for estimated shortages from the last physical count to the financial statement date. Goodwill and Intangible Assets: Goodwill represents the excess purchase price over the fair value of tangible net assets acquired in business combinations after amounts have been allocated to intangible assets. Goodwill is not amortized, but is reviewed for impairment during the last quarter of each year, or whenever events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount, using a discounted cash flow model and comparable market values of each reporting segment. Measuring the fair value of reporting units is a Level 3 measurement under the fair value hierarchy. See Note 8, Fair Value Measurements, for a discussion of levels. Intangible assets primarily consist of trade names, customer relationships, favorable lease agreements, pharmacy prescription lists, franchise agreements and fees, non-compete agreements and liquor licenses. The following assets are amortized on a straight-line basis over the period of time in which their expected benefits will be realized: favorable leases (related lease terms), prescription lists and customer relationships (period of expected benefit reflecting the pattern in which the economic benefits are consumed), non-compete agreements and franchise fees (length of agreements), and trade names with definite lives (expected life of the assets). Indefinite-lived trade names are not amortized but are tested at least annually for impairment, and liquor licenses are also not amortized as they have indefinite lives. Intangible assets are included in “Other Assets, net” in the consolidated balance sheets. Property and Equipment: Property and equipment are recorded at cost. Expenditures which improve or extend the life of the respective assets are capitalized, whereas expenditures for normal repairs and maintenance are charged to operations as incurred. Depreciation expense on land improvements, buildings and improvements, and equipment is computed using the straight-line method as follows: Land improvements 15 years Buildings and improvements 15 to 40 years Equipment 3 to 15 years Property under capital leases and leasehold improvements are amortized on a straight-line basis over the shorter of the remaining terms of the leases or the estimated useful lives of the assets. Internal use software is included in property and equipment and amounted to $30.7 million and $32.9 million as of December 30, 2017 and December 31, 2016, respectively. Impairment of Long-Lived Assets: The Company reviews and evaluates long-lived assets for impairment when events or circumstances indicate that the carrying amount of an asset may not be recoverable. When the undiscounted expected future cash flows are not sufficient to recover an asset’s carrying amount, the fair value is compared to the carrying value to determine the impairment loss to be recorded. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value, less the cost to sell. Fair values are determined by independent appraisals or expected sales prices based upon market participant data developed by third party professionals or by internal licensed real estate professionals. Estimates of future cash flows and expected sales prices are judgments based upon the Company’s experience and knowledge of operations. These estimates project cash flows several years into the future and are affected by changes in the economy, real estate market conditions and inflation. Reserves for Closed Properties: The Company records reserves for closed properties that are subject to long-term lease commitments based upon the future minimum lease payments and related ancillary costs from the date of closure to the end of the remaining lease term, net of estimated sublease rentals that could be reasonably expected to be obtained for the property. Future cash flows are based on contractual lease terms and knowledge of the geographic area in which the closed site is located. These estimates are subject to multiple factors, including inflation, ability to sublease the property and other economic conditions. Internally developed estimates of sublease rentals are based upon the geographic areas in which the properties are located, the results of previous efforts to sublease similar properties, and the current economic environment. The reserved expenses are paid over the remaining lease terms, which range from one to 11 years. Adjustments to closed property reserves primarily relate to changes in subtenant income or actual exit costs differing from original estimates. Adjustments are made for changes in estimates in the period in which the changes become known. The current portion of the future lease obligations of stores is included in “Other accrued expenses,” and the long-term portion is included in “Other long-term liabilities” in the consolidated balance sheets. Debt Issuance Costs : Debt issuance costs are amortized over the term of the related financing agreement and are included as a direct deduction from the carrying amount of the related debt liability in “Long-term debt and capital lease obligations” in the consolidated balance sheets. Insurance Reserves: SpartanNash is self-insured through self-insurance retentions or high deductible programs for workers’ compensation, general liability, and automobile liability, and is also self-insured for healthcare costs. Self-insurance liabilities are recorded based on claims filed and an estimate of claims incurred but not yet reported. Workers’ compensation, general liability and automobile liabilities are actuarially estimated based on available historical information on an undiscounted basis. The Company has purchased stop-loss coverage to limit its exposure to any significant exposure on a per claim basis for its self-insurance retentions and high deductible programs. On a per claim basis, the Company’s exposure is up to $0.5 million for workers’ compensation, general liability and automobile liability and $0.5 million for healthcare per covered life per year. A summary of changes in the Company’s self-insurance liability is as follows: (In thousands) 2017 2016 2015 Balance at beginning of year $ 14,730 $ 14,466 $ 19,413 Expenses 54,748 49,560 43,851 Claim payments, net of employee contributions (54,323 ) (49,296 ) (48,798 ) Balance at end of year $ 15,155 $ 14,730 $ 14,466 The current portion of the self-insurance liability was $8.7 million and $8.3 million as of December 30, 2017 and December 31, 2016, respectively, and is included in “Other accrued expenses” in the consolidated balance sheets. The long-term portion was $6.5 million and $6.4 million as of December 30, 2017 and December 31, 2016, respectively, and is included in “Other long-term liabilities” in the consolidated balance sheets. Income Taxes: Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future. Such deferred income tax asset and liability computations are based on enacted tax laws and rates applicable to periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred and other tax assets and liabilities. Earnings per share: Earnings per share (“EPS”) is computed using the two-class method. The two-class method determines EPS for each class of common stock and participating securities according to dividends and their respective participation rights in undistributed earnings. Participating securities include non-vested shares of restricted stock in which the participants have non-forfeitable rights to dividends during the performance period. Diluted EPS includes the effects of stock options. The following table sets forth the computation of basic and diluted EPS for continuing operations: (In thousands, except per share amounts) 2017 2016 2015 Numerator: (Loss) earnings from continuing operations $ (52,617 ) $ 57,056 $ 63,166 Adjustment for loss (earnings) attributable to participating securities 908 (1,011 ) (1,098 ) (Loss) earnings from continuing operations used in calculating earnings per share $ (51,709 ) $ 56,045 $ 62,068 Denominator: Weighted average shares outstanding, including participating securities 37,419 37,483 37,612 Adjustment for participating securities (646 ) (664 ) (654 ) Shares used in calculating basic earnings per share 36,773 36,819 36,958 Effect of dilutive stock options — 73 106 Shares used in calculating diluted earnings per share 36,773 36,892 37,064 Basic (loss) earnings per share from continuing operations $ (1.41 ) $ 1.52 $ 1.68 Diluted (loss) earnings per share from continuing operations $ (1.41 ) $ 1.52 $ 1.67 Weighted average shares issuable upon the exercise of stock options that were not included in the EPS calculations because they were anti-dilutive were 75,159 for 2017. There were no anti-dilutive stock options in 2016 and 2015. Stock-Based Compensation: All share-based payments to associates are recognized in the consolidated financial statements as compensation cost based on the fair value on the date of grant. The grant date closing price per share of SpartanNash stock is used to estimate the fair value of restricted stock awards and restricted stock units. The value of the portion of awards expected to vest is recognized as expense over the requisite service period. Shareholders’ Equity: The Company’s restated articles of incorporation provide that the Board of Directors may at any time, and from time to time, provide for the issuance of up to 10 million shares of preferred stock in one or more series, each with such designations as determined by the Board of Directors. At December 30, 2017 and December 31, 2016, there were no shares of preferred stock outstanding. Advertising Costs: The Company’s advertising costs are expensed as incurred and are included in Selling, general and administrative expenses. Advertising expenses were $43.4 million, $46.6 million and $47.7 in 2017, 2016 and 2015, respectively. Accumulated Other Comprehensive Income (Loss)(“AOCI”): The Company reports comprehensive income (loss) that includes net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to expenses, gains and losses that are not included in net earnings, such as pension and other postretirement liability adjustments, but rather are recorded directly to shareholders’ equity. These amounts are also presented in the consolidated statements of comprehensive income. As of December 30, 2017 and December 31, 2016, AOCI relates to the pension and postretirement plans. Discontinued operations: Certain of the Company’s Food Distribution and Retail operations have been recorded as discontinued operations. Results of discontinued operations are excluded from the accompanying notes to the consolidated financial statements for all periods presented, unless otherwise noted. Results of discontinued operations reported on the consolidated statements of operations are reported net of tax. Adoption of New Accounting Standards and Recently Issued Accounting Standards In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-02, “Income Statement – Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” ASU 2018-02 allows a reclassification from AOCI to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act, as further described in Note 13, Income Tax, lowered the U.S. federal corporate tax rate, resulting in a re-measurement of the deferred tax assets associated with AOCI. This new guidance allows the discrete tax impact of this re-measurement recorded in the consolidated statement of operations to be reclassified to properly reflect AOCI net of tax under the new statute. The Company early adopted this guidance upon its release. Retrospective application of the guidance resulted in a reclassification from AOCI to retained earnings of $2.7 million in 2017. In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment.” ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating Step 2 of the goodwill impairment test. If a reporting unit fails Step 1 of the goodwill impairment test, entities are no longer required to compute the implied fair value of goodwill following the same procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, the guidance requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and to recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The Company early adopted this guidance as of the beginning of the third quarter of 2017. Refer to Note 5, Goodwill and Other Intangible Assets, for further discussion of goodwill impairment testing. In January 2017, the FASB issued ASU 2017-01, “Business Combinations – Clarifying the Definition of a Business.” ASU 2017-01 narrows the definition of a business and provides a screen to determine when a set of the three elements of a business – inputs, processes, and outputs – are not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. If the screen is not met, the amendments (1) require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) remove the evaluation of whether a market participant could replace missing elements. The amendments provide a framework to assist entities in evaluating whether both an input and a substantive process are present. The new guidance is effective for the Company in 2018. The impact of adoption will depend on the facts and circumstances of future acquisitions, if any, and therefore the Company is unable to estimate the impact of adoption. Adoption will have no impact on the Company’s historical financial statements. In March 2016, the FASB issued 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, accounting for forfeitures, and classification on the statement of cash flows. The Company adopted the new standard in the first quarter of 2017. Accordingly, the tax benefits or deficiencies related to stock-based compensation are reflected in the consolidated statements of operations as a component of the provision for income taxes, whereas they previously were recognized in equity. As a result of the adoption, the Company recognized $1.3 million of tax benefits related to share-based payments in its provision for income taxes in 2017. Additionally, the Company’s consolidated statements of cash flows now include tax benefits as an operating activity, while cash paid on associates’ behalf related to shares withheld for tax purposes is classified as a financing activity. Retrospective application of the cash flow presentation resulted in $2.7 million and $4.0 million increases to both net cash provided by operating activities and net cash used in financing activities for 2016 and 2015, respectively. The Company’s stock compensation expense continues to reflect estimated forfeitures. In February 2016, the FASB issued ASU 2016-02, “Leases.” ASU 2016-02 provides guidance for lease accounting and 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 operations 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 29, 2019. The adoption of this ASU will result in a significant increase to the Company’s consolidated balance sheets for lease liabilities and right-of-use assets. The Company is currently evaluating the other effects of adoption of this ASU on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” The new guidance 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 2018. The adoption will include updates as provided under ASU 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net);” ASU 2016-10, “Identifying Performance Obligations and Licensing;” and ASU 2016-12, “Narrow-Scope Improvements and Practical Expedients.” Adoption is allowed by either the full retrospective or modified retrospective approach. The Company plans to adopt using a full retrospective approach beginning with the first quarter of 2018. The Company has completed its evaluation of adopting the standard and its impact on the consolidated financial statements. From a principal versus agent considerations perspective, the Company has evaluated its significant arrangements and has determined that certain contracts in the Food Distribution segment that are currently reported on the gross basis will be reported on the net basis beginning in 2018. As a result, net sales for 2017 and 2016 will be restated to reflect a reduction of revenues of approximately $160 million and $170 million, respectively, and the corresponding cost of goods sold related to these revenues will be reduced by the same amounts. For these contracts, the Company determined that it did not control the related goods or services before they were transferred to the customers, which resulted in the change in gross to net presentation. As it pertains to the Food Distribution and Military segments, the Company determined that other than grocery products, the promised goods or services outlined in the contracts with customers are immaterial in the context of the contracts. As a result of this determination, the Company is not required to assess whether these promised goods or services are performance obligations, and therefore, revenue recognition practices will not change as there are no additional deliverables for which the transaction price will need to be allocated. Many of the Company’s contracts also include contingent amounts of variable consideration, and the Company concluded there would be no changes to the timing of revenue as the Company currently recognizes these amounts under the presumption that they are determinable and can be estimated. The Company concluded there were no significant changes to revenue recognition in its Retail segment based on how the Company currently records gift card breakage and loyalty rewards, which are immaterial to the consolidated financial statements. In connection with adopting the standard, the Company has implemented key controls and processes related to the completeness and review of contracts, application of the guidance, tracking of performance obligations and other aspects of revenue recognition. In the first quarter of 2018, the Company will be required to make enhanced revenue disclosures, which will include relevant information about contracts with customers, disaggregated revenues, remaining performance obligations and other items requiring significant judgments and estimates used to recognize revenue. As a result, the Company has begun implementing disclosure controls and procedures related to these enhanced revenue disclosures. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Note 2 – Acquisitions On January 6, 2017, the Company acquired certain assets and assumed certain liabilities of Caito Foods Service (“Caito”) and Blue Ribbon Transport (“BRT”) for $214.6 million in cash, net of $2.5 million of cash acquired. Acquired assets consist primarily of property and equipment of $76.7 million, intangible assets of $72.9 million, and working capital. Intangible assets are primarily composed of customer relationships, which will be amortized over fifteen years, and indefinite lived trade names. In connection with the purchase, the Company is providing certain earn-out opportunities that have the potential to pay the sellers an additional $27.4 million, collectively, if the business achieves certain performance targets during the first three years after acquisition. If certain performance targets are not met in the first year after acquisition, the Company will be reimbursed a portion of the initial purchase price at an amount not to exceed the sum of: a) $15.0 million, representing the funds paid into escrow, and b) any earn-out opportunities earned by the sellers. The reduction in purchase price, if applicable, will first be applied to funds paid into escrow and then as an offset against and a reduction to any payments owed on the various earn-out opportunities, with reimbursement made after the third-year anniversary of the acquisition date. The acquisition was funded with proceeds from the Company’s Credit Agreement. As of December 30, 2017, the Company has incurred $4.9 million of total acquisition-related costs associated with the transaction, of which $2.7 million was incurred in 2017 and is recorded in merger/acquisition and integration expense. Founded in Indianapolis in 1965, Caito is a leading supplier of fresh fruits and vegetables as well as value-added meal solutions to grocery retailers and food service distributors across 21 states in the Southeast, Midwest and Eastern United States. BRT offers temperature-controlled distribution and logistics services throughout North America. Caito and BRT service customers from facilities in Indiana and Florida. Caito also has a fresh-cut fruit and vegetable facility in Indianapolis and a new 118,000 square foot Fresh Kitchen facility, also in Indianapolis. The Fresh Kitchen provides the Company with the ability to process, cook, and package fresh protein-based foods and complete meal solutions. The Company has begun production in the Fresh Kitchen facility and is in the process of ramping up to full production. The Company acquired Caito and BRT to strengthen its fresh product offerings to its existing customer base and to expand into fast-growing, value-added services, such as freshly-prepared centerplate and side dish categories. The acquired assets and assumed liabilities were recorded at their estimated fair values based on appraised value and discounted cash flow analyses as of the acquisition date, based on preliminary estimates, and have since been finalized. The Company increased goodwill by $1.3 million as a result of certain measurement period adjustments primarily associated with updated valuations of certain acquired long-lived assets. The excess of the purchase price over the fair value of net assets acquired of $46.3 million was recorded as goodwill in the consolidated balance sheet and allocated to the Food Distribution segment. The goodwill recognized is attributable primarily to the assembled workforce of Caito and BRT and expected synergies. The Company expects that all goodwill attributable to the acquisition will be deductible for tax purposes. On June 16, 2015, the Company 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 was 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. The Company acquired the Dan’s stores to strengthen its offering in this region from both a retail and distribution perspective. During the measurement period, which ended June 15, 2016, there were no material adjustments made to the initial fair values of the assets acquired and liabilities assumed as part of the Dan’s acquisition. |
Accounts and Notes Receivable
Accounts and Notes Receivable | 12 Months Ended |
Dec. 30, 2017 | |
Receivables [Abstract] | |
Accounts and Notes Receivable | Note 3 – Accounts and Notes Receivable Accounts and notes receivable are comprised of the following: December 30, December 31, (In thousands) 2017 2016 Customer notes receivable $ 2,555 $ 3,219 Customer accounts receivable 312,214 252,778 Other receivables 31,169 42,142 Allowance for doubtful accounts (1,881 ) (6,571 ) Net current accounts and notes receivable $ 344,057 $ 291,568 Long-term notes receivable 18,322 15,393 Allowance for doubtful accounts (120 ) (139 ) Net long-term notes receivable $ 18,202 $ 15,254 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 30, 2017 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Note 4 – Property and Equipment Property and equipment consists of the following: December 30, December 31, (In thousands) 2017 2016 Land and improvements $ 80,891 $ 76,409 Buildings and improvements 534,835 483,687 Equipment 567,123 529,705 Total property and equipment 1,182,849 1,089,801 Less accumulated depreciation and amortization 582,609 530,079 Property and equipment, net $ 600,240 $ 559,722 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 5 – Goodwill and Other Intangible Assets The Company has three reportable segments; however, no goodwill has existed within the Military segment. Changes in the carrying amount of goodwill were as follows: Food (In thousands) Distribution Retail Total Balance at January 2, 2016: $ 132,367 190,535 (a) $ 322,902 (a) Other — (216 ) (216 ) Balance at December 31, 2016: 132,367 190,319 (a) 322,686 (a) Acquisitions (Note 2) 46,281 — 46,281 Disposals — (1,292 ) (1,292 ) Impairment — (189,027 ) (189,027 ) Balance at December 30, 2017: $ 178,648 $ — (b) $ 178,648 (b) (a) Net of accumulated impairment charges of $86.6 million. (b) Net of accumulated impairment charges of $275.6 million. The Company reviews goodwill and other intangible assets for impairment annually, during the fourth quarter of each year, and more frequently if circumstances indicate the possibility of impairment. Testing goodwill and other intangible assets for impairment requires management to make significant estimates about the Company’s future performance, cash flows, and other assumptions that can be affected by potential changes in economic, industry or market conditions, business operations, competition, or the Company’s stock price and market capitalization. On the first day of the third quarter of 2017, the Company early adopted ASU 2017-04, which simplifies the subsequent measurement of goodwill by eliminating Step 2 of the goodwill impairment test. In the third quarter of 2017, the Company experienced significantly lower than expected Retail operating results and, due to an increasingly competitive retail environment and the related pricing pressures that are anticipated to negatively impact gross margin, lower operating profit. As a result, the Company revised its future cash flow projections for the Retail reporting unit and performed Step 1 of the goodwill impairment test by calculating the fair value of the Retail reporting unit based on its discounted estimated future cash flows. The Company then benchmarked the calculated fair value against a market approach using the guideline public companies method. Given there had been a sustained decline in the market multiples of publicly traded peer companies, management considered this market information when assessing the reasonableness of the fair value of the reporting unit under both the income and market approaches. Based on the factors outlined above, together with the results of the Step 1 goodwill impairment test, it was determined that the carrying value of the Retail segment exceeded its fair value. Consequently, the Company recorded a goodwill impairment charge of $189.0 million. The Company completed its impairment analysis in the fourth quarter, which did not result in any changes to the impairment recorded in the third quarter. The measurement of the fair value of the Retail segment required significant judgments and estimates regarding short- and long-term growth rates and profitability, as well as assumptions regarding the market valuation of the business. These represent Level 3 valuation inputs under the ASC 820 fair value hierarchy, as further described in Note 8, Fair Value Measurements. As of the date of the most recent goodwill impairment test, which utilized data and assumptions as of October 7, 2017, the Food Distribution reporting unit had a fair value that was substantially in excess of its carrying value. The following table reflects the components of amortized intangible assets, included in “Intangible assets, net” on the consolidated balance sheets: December 30, 2017 December 31, 2016 Gross Gross Carrying Accumulated Carrying Accumulated (In thousands) Amount Amortization Amount Amortization Non-compete agreements $ 3,408 $ 397 $ 1,244 $ 978 Favorable leases 8,251 4,332 8,744 3,807 Pharmacy customer prescription lists 6,810 4,210 7,168 3,445 Customer relationships 57,937 4,173 17,633 2,187 Trade names 1,068 386 1,068 236 Franchise fees and other 1,047 381 929 270 Total $ 78,521 $ 13,879 $ 36,786 $ 10,923 The weighted average amortization periods for amortizable intangible assets as of December 30, 2017 are as follows: Non-compete agreements 6.3 years Favorable leases 16.4 years Pharmacy customer prescription lists 7.5 years Customer relationships 16.1 years Trade names 7.0 years Franchise fees and other 9.3 years Amortization expense for intangible assets was $5.5 million, $3.0 million and $3.3 million for 2017, 2016 and 2015, respectively. Estimated amortization expense for each of the five succeeding fiscal years is as follows: (In thousands) 2018 2019 2020 2021 2022 Amortization expense $ 5,772 $ 5,604 $ 5,267 $ 4,620 $ 4,362 Indefinite-lived intangible assets that are not amortized, consisting primarily of trade names and licenses for the sale of alcoholic beverages, totaled $69.8 million and $34.3 million as of December 30, 2017 and December 31, 2016, respectively. |
Restructuring Charges and Asset
Restructuring Charges and Asset Impairment | 12 Months Ended |
Dec. 30, 2017 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Charges and Asset Impairment | Note 6 – Restructuring Charges and Asset Impairment The following table provides the activity of reserves for closed properties for 2017, 2016 and 2015. Reserves for closed properties recorded in the 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 3, 2015 $ 13,988 $ 80 $ 14,068 Provision for closing charges 7,200 — 7,200 Provision for severance — 395 395 Changes in estimates (56 ) (80 ) (136 ) Lease termination adjustments (1,745 ) — (1,745 ) Accretion expense 592 — 592 Payments (5,531 ) (395 ) (5,926 ) Balance at January 2, 2016 14,448 — 14,448 Provision for closing charges 13,925 — 13,925 Provision for severance — 919 919 Changes in estimates 689 (40 ) 649 Lease termination adjustments (2,437 ) — (2,437 ) Accretion expense 675 — 675 Payments (5,368 ) (879 ) (6,247 ) Balance at December 31, 2016 21,932 — 21,932 Provision for closing charges 3,852 — 3,852 Provision for severance — 624 624 Changes in estimates 1,191 (163 ) 1,028 Lease termination adjustments (2,600 ) — (2,600 ) Accretion expense 526 — 526 Payments (7,012 ) (458 ) (7,470 ) Balance at December 30, 2017 $ 17,889 $ 3 $ 17,892 Included in the liability are lease obligations recorded at the present value of future minimum lease payments and related ancillary costs from the date of closure to the end of the remaining lease term, net of estimated sublease income, calculated using a risk-free interest rate. Restructuring charges and asset impairment charges included in the consolidated statements of operations consisted of the following: (In thousands) 2017 2016 2015 Asset impairment charges $ 33,679 $ 15,586 $ 4,220 Provision for closing charges 3,852 13,925 7,200 Loss (gain) on sales of assets related to closed facilities 998 (134 ) (2,997 ) Provision for severance 624 919 395 Other costs associated with distribution center and store closings 1,851 3,692 1,865 Changes in estimates 1,028 865 (136 ) Lease termination adjustments (2,600 ) (2,737 ) (1,745 ) $ 39,432 $ 32,116 $ 8,802 Asset impairment charges were incurred on long-lived assets primarily in the Retail segment due to the economic and competitive environment of certain stores and in conjunction with the Company’s retail store rationalization plan. The changes in estimates primarily relate to revised estimates of lease turnover and ancillary costs and sublease income associated with previously closed locations, due to lost subtenants and deterioration of the condition of certain properties. The lease termination adjustments represent the benefits recognized in connection with lease buyouts negotiated related to previously closed stores. Long-lived assets are analyzed for impairment whenever circumstances arise that could indicate the carrying value of long-lived assets may not be recoverable. If such circumstances exist, then estimates are made of future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected cash flows (undiscounted and without interest charges) is less than the carrying amount of the asset, an impairment loss is recognized in the consolidated statements of earnings. Measurement of the impairment loss to be recorded is equal to the excess of the carrying amount of the assets over the discounted future cash flows. When analyzing the assets for impairment, assets are grouped at the lowest level of identifiable cash flows that are largely independent of the cash flows of other groups of assets. Long-lived assets are measured at fair value on a nonrecurring basis using Level 3 inputs under the fair value hierarchy, as further described in Note 8, Fair Value Measurements. Assets consisting primarily of property and equipment with a book value of $48.6 million were measured at a fair value of $14.9 million, resulting in an impairment charge of $33.7 million in 2017. 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 historical results of operations, external factors expected to impact future performance, experience and knowledge of the geographic area in which the assets are located, and when necessary, uses real estate brokers. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 7 – Long-Term Debt Long-term debt consists of the following: December 30, December 31, (In thousands) 2017 2016 Senior secured revolving credit facility, due December 2021 $ 707,492 $ 359,127 Senior secured term loan, due December 2021 — 26,954 Capital lease obligations (Note 10) 42,904 48,255 Other, 2.61% - 8.75%, due 2019 - 2024 5,972 5,028 Total debt - Principal 756,368 439,364 Unamortized debt issuance costs (6,417 ) (8,265 ) Total debt 749,951 431,099 Less current portion 9,196 17,424 Total long-term debt $ 740,755 $ 413,675 In December 2016, SpartanNash Company and certain of its subsidiaries amended its senior secured credit facility (the “Credit Agreement”). The principal changes of the amendment were to reduce the number of tiers in the pricing grid from three to two, reset the advance rate on real estate to 75%, provide the ability to increase the size of the term loan by $33 million, and extend the maturity date of the agreement, which was set to expire on January 8, 2020, to December 20, 2021. The Credit Agreement provides for borrowings of $1.0 billion, consisting of three tranches: a $900 million secured revolving credit facility (Tranche A), a $40 million secured revolving credit facility (Tranche A-1), and a $60 million term loan (Tranche A-2). In the first quarter of 2017, the Company borrowed $35.5 million on the senior secured term loan (Tranche A-2) in accordance with the December 2016 amendment. In the fourth quarter of 2017, the Company paid the outstanding balance on the senior secured term loan (Tranche A-2) of $52.5 million with proceeds from its senior secured revolving credit facilities, resulting in debt extinguishment costs of $0.4 million. T Availability under the Credit Agreement is based upon advance rates on certain asset categories owned by the Company, including, but not limited to the following: inventory, accounts receivable, real estate, prescription lists, cigarette tax stamps, and rolling stock. The Credit Agreement imposes certain requirements, including: limitations on dividends and investments, limitations on the Company’s ability to incur debt, make loans, acquire other companies, change the nature of the Company’s business, enter a merger or consolidation, or sell assets. These requirements can be more restrictive depending upon the Company’s Excess Availability, as defined under the Credit Agreement. Borrowings under the three tranches of the credit facility bear interest at the Company’s option as either Eurodollar loans or Base Rate loans, . The interest rate terms for the two remaining tranches are as follows: Credit Outstanding as of Facility December 30, 2017 Tranche (In thousands) Eurodollar Rate Base Rate Tranche A $ 668,093 LIBOR plus 1.25% to 1.50% Greater of: (i) the Federal Funds Rate plus 1.00% to 1.25% (ii) the Eurodollar Rate plus 1.25% to 1.50% (iii) the prime rate plus 0.25% to 0.50% Tranche A-1 $ 39,399 LIBOR plus 2.50% to 2.75% Greater of: (i) the Federal Funds Rate plus 2.00% to 2.25% (ii) the Eurodollar Rate plus 2.50% to 2.75% (iii) the prime rate plus 1.50% to 1.75% The Company also incurs an unused line of credit fee on the unused portion of the loan commitments at a rate of 0.25%. As of December 30, 2017 and December 31, 2016, total outstanding borrowings on the secured revolving credit facilities and term loan were $707.5 million and $386.1 million, respectively. The Credit Agreement requires that the Company maintain Excess Availability of 10% of the borrowing base, as defined in the Credit Agreement. The Company is in compliance with all financial covenants as of December 30, 2017 and had Excess Availability after the 10% requirement of $132.7 million and $415.8 million at December 30, 2017 and December 31, 2016, respectively. The Credit Agreement provides for the issuance of letters of credit, of which $9.2 million and $9.6 million were outstanding as of December 30, 2017 and December 31, 2016, respectively. In November 2015, the Company called for redemption all of the outstanding $50.0 million aggregate principal amount of the 6.625% Senior Notes due December 2016 (the “Notes”). The Company redeemed the Notes for cash, using borrowings under its secured revolving credit facility on December 15, 2015. Notes called for redemption became due and payable on the redemption date at a cash redemption price of 101.65625% of the principal amount of the Notes, plus accrued and unpaid interest. A loss on debt extinguishment of $1.2 million was incurred consisting of the redemption premium and the write-off of unamortized issuance costs. The weighted average interest rate for all borrowings, including loan fee amortization, was 3.70% for 2017. At December 30, 2017, aggregate annual maturities and scheduled payments of long-term debt are as follows: (In thousands) 2018 2019 2020 2021 2022 Thereafter Total Total borrowings $ 9,196 $ 6,969 $ 5,195 $ 710,494 $ 2,846 $ 21,668 $ 756,368 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 8 – 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. For discussion of the fair value measurements related to goodwill and long-lived asset impairment charges, refer to Note 5, Goodwill and Other Intangible Assets, and Note 6, Restructuring Charges and Asset Impairment. At December 30, 2017 and December 31, 2016, the book value and estimated fair value of the Company’s debt instruments, excluding debt financing costs, were as follows: December 30, December 31, (In thousands) 2017 2016 Book value of debt instruments, excluding debt financing costs: Current maturities of long-term debt and capital lease obligations $ 9,196 $ 17,424 Long-term debt and capital lease obligations 747,172 421,940 Total book value of debt instruments 756,368 439,364 Fair value of debt instruments, excluding debt financing costs 757,966 440,759 Excess of fair value over book value $ 1,598 $ 1,395 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. Certain of the Company’s business combinations involve the potential for the receipt or payment of future contingent consideration upon the shortfall or achievement of various operating thresholds, respectively. The additional consideration is generally contingent on the acquired company reaching certain performance milestones, including attaining specified EBITDA levels. An asset or liability is recorded for the estimated fair value of the contingent consideration at the acquisition date and is re-measured each reporting period, with changes in fair value recognized as income or expense within operating expenses in the consolidated statements of operations. The Company measures the asset and liability on a recurring basis using Level 3 inputs. The fair value of contingent consideration is measured using a discounted cash flow model incorporating projected payment dates, discount rates, probabilities of payment, and projected EBITDA. Projected EBITDA amounts are based on initial deal model forecasts at the time of acquisition as well as the Company’s most recent internal operational budget, and include a probability weighted range of outcomes. Changes in projected EBITDA, probabilities of payment, discount rates, or projected payment dates may result in higher or lower fair value measurements. The recurring Level 3 fair value measurements of contingent consideration include the following significant unobservable inputs as of December 30, 2017: Unobservable Input Range Discount rate 11.80% Probability of payments 0% - 100% Projected year(s) of payments 2017 - 2019 As of December 30, 2017, the fair value of contingent consideration receivable and payable associated with the Caito and BRT acquisition was $18.4 million and $3.4 million, respectively. The net receivable of $15 million was recorded in other assets, net in the consolidated balance sheets as there is a right of offset for the payable and receivable. Upon payment, the portion of the contingent consideration related to the acquisition date fair value is reported as a financing activity in the consolidated statements of cash flows. Amounts received or paid in excess of the acquisition date fair value are reported as an operating activity in the consolidated statements of cash flows. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9 – Commitments and Contingencies The Company subleases property at certain locations and for 2017, 2016 and 2015, received rental income of $3.4 million, $4.8 million and $5.3 million, respectively. In the event of customer default, the Company would be responsible for fulfilling these lease obligations. Future payment obligations under these leases are disclosed in Note 10, Leases. Contingencies related to credit risk and collectability are disclosed in Note 15, Concentration of Credit Risk. Unions represent approximately 8% of SpartanNash’s associates. These associates are covered by collective bargaining agreements (“CBAs”). The facilities covered by CBAs, the unions representing the covered associates and the expiration dates for each existing CBA are provided in the following table: Distribution Center Locations Union Locals Expiration Dates Lima, Ohio IBT 908 January, 2019 Bellefontaine, Ohio GTL Truck Lines, Inc. IBT 908 February, 2019 Bellefontaine, Ohio General Merchandise Service Division IBT 908 February, 2019 Grand Rapids, Michigan IBT 406 October, 2019 Landover, Maryland IBT 639 February, 2021 Norfolk, Virginia IBT 822 April, 2019 Columbus, Georgia IBT 528 September, 2019 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 CBAs in Bellefontaine and Lima, Ohio and Grand Rapids, Michigan covering its supply chain 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 or those outlined in the “Default Schedule.” Both the Primary and Default schedules require varying increases in employer contributions over the previous year’s contribution. Increases are set within the CBA and vary by location. The Plan continues to be in red zone status, and according to the Pension Protection Act (“PPA”), is considered to be in “critical and declining” zone status. Among other factors, plans in the “critical and declining” zone are generally less than 65% funded and are projected to become insolvent within the next 15 years (or 20 years depending on the ratio of active-to-inactive participants). 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. Management is not aware of any significant change in funding levels since December 30, 2017. 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. |
Leases
Leases | 12 Months Ended |
Dec. 30, 2017 | |
Leases [Abstract] | |
Leases | Note 10 – Leases A substantial portion of the Company’s retail stores and warehouse properties are operated in leased facilities. The Company also leases small ancillary warehouse facilities, the majority of the tractors and trailers within its fleet, and certain other equipment. Most of the property leases contain renewal options of varying terms. Terms of certain leases contain provisions requiring payment of percentage rent based on sales and payment of executory costs such as property taxes, utilities, insurance, maintenance and other occupancy costs applicable to the leased premises. Terms of certain leases of transportation equipment contain provisions requiring payment of percentage rent based upon miles driven. Certain properties or portions thereof are subleased to others. Operating leases often contain renewal options. In those locations in which it makes economic sense to continue to operate, management expects that, in the normal course of business, leases that expire will be renewed or replaced by other leases. Rental expense, net of sublease income, under operating leases consisted of the following: (In thousands) 2017 2016 2015 Minimum rentals $ 55,159 $ 57,478 $ 57,625 Contingent rent (reductions) increases (237 ) 314 267 Sublease rental income (3,407 ) (4,830 ) (5,311 ) Total $ 51,515 $ 52,962 $ 52,581 The Company’s total future lease commitments under operating and capital leases in effect at December 30, 2017 are as follows: Operating Leases Used in Subleased Capital (In thousands) Operations to Others Total Leases 2018 $ 52,613 $ 1,265 $ 53,878 $ 9,198 2019 41,489 1,039 42,528 8,756 2020 33,951 817 34,768 6,593 2021 26,719 694 27,413 4,577 2022 19,779 468 20,247 4,233 Thereafter 67,317 504 67,821 28,862 Total $ 241,868 $ 4,787 $ 246,655 62,219 Interest (19,315 ) Present value of minimum lease obligations 42,904 Current maturities 6,168 Long-term capital lease obligations $ 36,736 Assets held under capital leases consisted of the following: December 30, December 31, (In thousands) 2017 2016 Building and improvements $ 60,398 $ 61,831 Equipment 3,727 3,403 Assets under capital leases 64,125 65,234 Less accumulated amortization and depreciation 29,518 25,163 Net assets under capital leases $ 34,607 $ 40,071 Amortization expense for property under capital leases was $4.4 million, $5.2 million and $3.6 million in 2017, 2016 and 2015, respectively. Certain retail store facilities, either owned or obtained through leasing arrangements, are leased to others. A majority of the leases provide for minimum and contingent rentals based upon stipulated sales volumes and contain renewal options. Certain of the leases contain escalation clauses. Owned assets, included in property and equipment, which are leased to others are as follows: December 30, December 31, (In thousands) 2017 2016 Land and improvements $ 6,515 $ 3,860 Buildings 24,236 13,948 Long-term debt and capital lease obligations 30,751 17,808 Less accumulated amortization and depreciation 8,123 7,625 Net property $ 22,628 $ 10,183 Future minimum rentals to be received under lease obligations in effect at December 30, 2017 are as follows: (In thousands) 2018 2019 2020 2021 2022 Thereafter Total Owned property $ 4,194 $ 4,044 $ 3,635 $ 3,359 $ 2,973 $ 16,768 $ 34,973 Leased property 2,708 2,268 2,022 1,545 896 3,731 13,170 Total $ 6,902 $ 6,312 $ 5,657 $ 4,904 $ 3,869 $ 20,499 $ 48,143 |
Associate Retirement Plans
Associate Retirement Plans | 12 Months Ended |
Dec. 30, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Associate Retirement Plans | Note 11 – Associate Retirement Plans The Company’s retirement programs include pension plans providing non-contributory benefits and salary deferral defined contribution plans. Substantially all of the Company’s associates not covered by CBAs are covered by a frozen non-contributory pension plan, a defined contribution plan, or both. Associates covered by CBAs at the Company’s Columbus, Georgia; Norfolk, Virginia; and Landover, Maryland facilities all participate in the Company’s defined contribution plan; the remaining associates covered under CBAs participate in a multi-employer pension plan. Defined Contribution Plans Expense for employer matching and profit sharing contributions made to defined contribution plans totaled $7.9 million, $11.9 million and $21.1 million in 2017, 2016 and 2015, respectively. Executive Compensation Plans The Company has a deferred compensation plan for a select group of management personnel or highly compensated associates. The plan is unfunded and permits participants to defer receipt of a portion of their base salary, annual bonus, or long-term incentive compensation which would otherwise be paid to them. The deferred amounts, plus earnings, are distributed following the associate’s termination of employment. Earnings are based on the performance of hypothetical investments elected by the participant from a portfolio of investment options. The Company holds variable universal life insurance policies on certain key associates intended to fund distributions under the deferred compensation plan referenced above. The net cash surrender value of approximately $4.3 million and $4.2 million at December 30, 2017 and December 31, 2016, respectively, is recorded in “Other assets, net” in the consolidated balance sheets. These policies have an aggregate amount of life insurance coverage of approximately $15.0 million. The Company had two separate trusts established for the protection of cash balances owed to participants in its deferred compensation plans. The Company was required, as specified by the plan documents, to fund these trusts at the time of the merger with 125% of its pre-merger liability to plan participants. These trusts were subsequently terminated in 2015 and the Company received cash proceeds from the liquidation of corporate owned life insurance policies of $5.0 million. Defined Benefit Plans The Company sponsors the SpartanNash Company Pension Plan (the “Pension Plan”), a frozen defined benefit pension plan. The pension benefits are primarily based on years of service and compensation, with some differences resulting from the nature of how benefits were calculated under the Company’s legacy defined benefit plans, as described below. On December 31, 2014, the Retirement Plan for Employees of Super Food Services, Inc. (“Super Foods Plan”) was merged into the Spartan Stores, Inc. Cash Balance Pension Plan (“Cash Balance Pension Plan”) and renamed the SpartanNash Company Pension Plan. The merging of the plans resulted in lower administrative fees and reduced cash funding. Annual payments to the pension trust fund are determined in compliance with the Employee Retirement Income Security Act of 1976 (“ERISA”). Plan assets consist principally of U.S. government and corporate obligations and common stocks. The plan does not hold any SpartanNash stock. The Cash Balance Pension Plan, a non-contributory cash balance pension plan, was frozen effective January 1, 2011. As a result of the freeze, no additional associates were eligible to participate in the plan after January 1, 2011, and additional service credits were no longer added to each participant’s account; however, interest credits continue to accrue. Prior to the plan freeze, the plan benefit formula utilized a cash balance approach whereby credits were added annually to a participant’s account based on compensation and years of vested service, with interest credits also added to the participant’s account at the Company’s discretion. The Super Foods Plan, a qualified non-contributory pension plan offered by one of the Company’s subsidiaries, provides retirement income for certain eligible full-time associates who are not covered by a union retirement plan. Pension benefits under the plan are based on length of service and compensation, and contributions meet the minimum funding requirements. This plan was frozen effective January 1, 1998. If lump sum distributions are made in an amount exceeding annual interest cost, settlement accounting is triggered and the resulting settlement expense is recorded as a component of total pension expense (income). Lump sum distributions of $2.6 million and $2.8 million were made and resulting pension settlement charges of $0.5 million and $0.7 million were incurred in 2017 and 2016, respectively. Postretirement Medical Plans SpartanNash Company and certain subsidiaries provide healthcare benefits to retired associates under the SpartanNash Company Retiree Medical Plan (the “Retiree Medical Plan”). Former Spartan Stores, Inc. associates hired prior to January 1, 2002 who were not covered by CBAs during their employment and who have at least The following tables set forth the actuarial present value of benefit obligations, funded status, changes in benefit obligations and plan assets, weighted average assumptions used in actuarial calculations and components of net periodic benefit costs for the Company’s significant pension and postretirement benefit plans, excluding multi-employer plans. The prepaid, current accrued, and noncurrent accrued benefit costs associated with pension and postretirement benefits are reported in “Other assets, net,” “Accrued payroll and benefits,” and “Postretirement benefits,” respectively, in the consolidated balance sheets. Pension Plan Retiree Medical Plan December 30, December 31, December 30, December 31, (In thousands, except percentages) 2017 2016 2017 2016 Funded Status Projected/Accumulated benefit obligation: Balance at beginning of year $ 80,350 $ 83,398 $ 9,663 $ 9,179 Service cost — — 184 187 Interest cost 2,345 2,977 345 345 Actuarial loss 4,662 1,598 303 213 Benefits paid (7,204 ) (7,623 ) (296 ) (261 ) Balance at end of year $ 80,153 $ 80,350 $ 10,199 $ 9,663 Fair value of plan assets: Balance at beginning of year $ 81,982 $ 84,753 $ — $ — Actual return on plan assets 6,477 4,852 — — Company contributions — — 296 261 Benefits paid (7,204 ) (7,623 ) (296 ) (261 ) Balance at end of year $ 81,255 $ 81,982 $ — $ — Funded (unfunded) status $ 1,102 $ 1,632 $ (10,199 ) $ (9,663 ) Components of net amount recognized in consolidated balance sheets: Noncurrent assets $ 1,102 $ 1,632 $ — $ — Current liabilities — — (417 ) (412 ) Noncurrent liabilities — — (9,782 ) (9,251 ) Net asset (liability) $ 1,102 $ 1,632 $ (10,199 ) $ (9,663 ) Amounts recognized in AOCI: Net actuarial loss $ 18,205 $ 16,938 $ 1,678 $ 1,434 Prior service credit — — (250 ) (408 ) Accumulated other comprehensive loss $ 18,205 $ 16,938 $ 1,428 $ 1,026 Weighted average assumptions at measurement date: Discount rate 3.45% 3.82% 3.72% 4.26% Ultimate health care cost trend rate N/A N/A 5.00% 5.00% Pension Plan Retiree Medical Plan (In thousands, except percentages) 2017 2016 2015 2017 2016 2015 Components of net periodic benefit cost (income): Service cost $ — $ — $ — $ 184 $ 187 $ 231 Interest cost 2,345 2,977 3,325 345 345 404 Amortization of prior service cost — — — (158 ) (158 ) (158 ) Expected return on plan assets (3,836 ) (4,269 ) (4,923 ) — — — Recognized actuarial net loss 221 706 827 59 42 174 Net periodic benefit (income) expense $ (1,270 ) $ (586 ) $ (771 ) $ 430 $ 416 $ 651 Settlement expense 548 692 — — — — Total (income) expense $ (722 ) $ 106 $ (771 ) $ 430 $ 416 $ 651 Weighted average assumptions used to determine net periodic benefit cost (income): Discount rate 3.82% 4.04% 3.75% 4.26% 4.55% 4.15% Expected return on plan assets 4.83% 5.05% 5.50% N/A N/A N/A The net actuarial loss and prior service cost included in AOCI and expected to be recognized in net periodic benefit cost in 2018 are as follows: Retiree (In thousands) Pension Plan Medical Plan Prior service credit $ N/A $ (158 ) Net actuarial loss 417 88 Prior service costs (credits) are amortized on a straight-line basis over the average remaining service period of active participants. Actuarial gains and losses for the Pension Plan are amortized over the average remaining life of all participants when the accumulation of such gains and losses exceeds 10% of the greater of the projected benefit obligation and the market-related value of plan assets. Assumed healthcare cost trend rates have a significant effect on the amounts reported for the Retiree Medical Plan. Assumed current healthcare cost trend rates used to determine net periodic benefit cost (income) were as follows: 2017 2016 2015 Pre-65 N/A 7.50% 7.75% Post-65 8.40% 8.40% 6.85% The effect of a one-percentage point increase or decrease in assumed healthcare cost trend rates on the total service and interest components and the post-retirement benefit obligations would be less than $0.1 million. Expected Return on Assets and Investment Strategy The Company has assumed an average long-term expected return on the Pension Plan assets of 4.84% as of December 30, 2017. The expected return assumption was modeled by third-party investment portfolio managers, based on asset allocations and the expected return and risk components of the various asset classes in the portfolio. Determining projected stock and bond returns and then applying these returns to the target asset allocations of the plan assets developed the expected return. Equity returns were based primarily on historical returns of the S&P 500 Index. Fixed-income projected returns were based primarily on historical returns for the broad U.S. bond market. This overall return assumption is believed to be reasonable over a longer-term period that is consistent with the liabilities. The Company has an investment policy for the Pension Plan with a long-term asset allocation mix designed to meet the long-term retirement obligations by investing in equity, fixed income and other securities to cover cash flow requirements of the plan and minimize long-term costs. The asset allocation mix is reviewed periodically and, on a regular basis, actual allocations are rebalanced to approximate the prevailing targets. The following table summarizes both the targeted allocation of the Pension Plan’s asset allocation by asset category and actual allocations as of December 30, 2017 and December 31, 2016: Target Actual December 30, December 30, December 31, Asset Category 2017 2017 2016 Equity securities 20.0 % 19.3 % 20.8 % Fixed income 80.0 79.4 76.9 Cash equivalents — 1.3 2.3 Total 100.0 % 100.0 % 100.0 % The investment policy emphasizes the following key objectives: (1) provide benefit security to participants by maximizing the return on plan assets at an acceptable risk level, (2) maintain adequate liquidity for current benefit payments, (3) avoid unexpected increases in pension expense, and (4) within the scope of the above objectives, minimize long term funding to the plan. The fair values of the Pension Plan assets at December 30, 2017 and December 31, 2016, by asset category, are as follows: Fair Value of Assets as of December 30, 2017 (In thousands) Total Level 1 Level 2 Level 3 NAV (a) Mutual funds $ 18,194 $ — $ — $ — $ 18,194 Pooled funds 48,133 — — — 48,133 Money market fund 1,037 — 1,037 — — Guaranteed annuity contract 13,891 — — 13,891 — Total fair value $ 81,255 $ — $ 1,037 $ 13,891 $ 66,327 Fair Value of Assets as of December 31, 2016 (In thousands) Total Level 1 Level 2 Level 3 NAV (a) Mutual funds $ 14,178 $ — $ — $ — $ 14,178 Pooled funds 50,506 — — — 50,506 Money market fund 1,872 — 1,872 — — Guaranteed annuity contract 15,426 — — 15,426 — Total fair value $ 81,982 $ — $ 1,872 $ 15,426 $ 64,684 (a) Assets are measured at net asset value (“NAV”) (or its equivalent) on a non-active market, and therefore, have not been classified in the fair value hierarchy. Level 3 assets consist of guaranteed annuity contracts. A reconciliation of the beginning and ending balances for Level 3 assets is as follows: (In thousands) December 30, 2017 December 31, 2016 Balance at beginning of year $ 15,426 $ 16,198 Purchases, sales, issuances and settlements, net (2,222 ) (1,733 ) Interest income 552 631 Unrealized gains 135 330 Balance at end of year $ 13,891 $ 15,426 See Note 8 for a discussion of the levels of the fair value hierarchy. The above assets’ fair value measurement level is based on the lowest level of any input that is significant to the fair value measurement. The following is a description of the valuation methods used for the Pension Plan’s assets measured at fair value in the above tables: Cash & money market funds: The carrying value approximates fair value. Money market funds are valued on a daily basis at NAV using the amortized cost of the securities held in the fund. Since amortized cost does not meet the criteria for an active market, money market funds are classified within Level 2 of the fair value hierarchy of ASC 820. Mutual Funds: These investments are valued using NAV as a practical expedient to estimate fair value and are not classified in the fair value hierarchy. NAV is determined once a day after the closing of the exchange based upon the underlying assets in the fund, less the fund’s liabilities, expressed on a per-share basis. Mutual funds held by the Pension Plan are open end mutual funds that are registered with the Securities and Exchange Commission (“SEC”). These funds are required to publish their daily NAV and to transact at that price. The mutual funds held by the Pension Plan are therefore deemed to be actively traded. Pooled Funds: The plan holds units of various Aon Hewitt Group Trust Funds offered through a private placement. The units are valued daily using NAV as a practical expedient to estimate fair value. NAVs are based on the fair value of each fund’s underlying investments, and are not classified in the fair value hierarchy. The practical expedient is not used when it is determined to be probable that the investment will be sold for an amount different than the reported NAV. Guaranteed Annuity Contracts: The guaranteed annuity contracts are immediate participation contracts held with insurance companies that act as custodian of the Pension Plan’s assets. The guaranteed annuity contracts are stated at contract values, which are determined by the custodians and approximate fair values. The Company evaluates the general financial condition of the custodians as a component of validating whether the calculated contract value is an accurate approximation of fair value. The review of the general financial condition of the custodians is considered obtainable/observable through the review of readily available financial information the custodians are required to file with the SEC. The group annuity contracts are classified within Level 3 of the valuation hierarchy of ASC 820. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuations methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement. The Company expects to make contributions in 2018 of $0.4 million to the Retiree Medical Plan. Although no contributions are required, the Company expects to contribute approximately $2.0 million to the Pension Plan in 2018. The following estimated benefit payments are expected to be paid in the following fiscal years: (In thousands) 2018 2019 2020 2021 2022 2022 to 2026 Pension benefits $ 8,668 $ 8,274 $ 7,702 $ 7,843 $ 7,035 $ 26,850 Post-retirement medical benefits 417 463 503 540 575 3,232 Multi-Employer Health and Welfare Plans In addition to the plans described above, the Company participates in the Michigan Conference of Teamsters and Ohio Conference of Teamsters Health and Welfare plans. The Company contributes to these multi-employer plans under the terms contained in existing CBAs and in the amounts set forth within these agreements. The health and welfare plans provide medical, dental, pharmacy, vision, and other ancillary benefits to active associates and retirees, as determined by the trustees of the plan. The Company’s contributions largely benefit active associates, and as such, may not constitute contributions to a postretirement benefit plan. However, the Company is unable to separate contribution amounts for postretirement benefits from contribution amounts paid for active participants in the plan. These plans have a significant surplus of funds held in reserve in excess of claims incurred, and there is no potential withdrawal liability related to the Company’s participation in the plans. With respect to the Company’s participation in these plans, expense is recognized as contributions are funded. The Company contributed $14.1 million, $14.3 million and $15.1 million to these plans in 2017, 2016 and 2015, respectively. Multi-Employer Pension Plan The Company also contributes to the Central States Plan, a multi-employer plan defined previously, under the terms of CBAs that cover its union-represented associates and in the amounts set forth within these agreements. The Company is party to four CBAs that require contributions to the Plan with expiration dates ranging from January 2019 to February 2021. These CBAs cover warehouse personnel and drivers in Grand Rapids, Michigan and Bellefontaine and Lima, Ohio. With respect to the Company’s participation in the Central States Plan (EIN 36-60442343 / Pension Plan Number 001), expense is recognized as contributions are funded. The Company contributed $13.4 million, $13.4 million and $12.9 million to this plan in 2017, 2016 and 2015, respectively. The contributions made by the Company represent less than five percent of the Plan’s total contributions in 2017. The risk of participating in a multi-employer pension plan is different from the risk associated with single-employer plans in the following respects: a. Assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers. b. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. c. If a company chooses to stop participating in a multi-employer plan, makes market exits such as closing a distribution center without opening another one in the same locale, or otherwise has participation in the plan drop below certain levels, the company may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. The PPA zone status of the Plan, which is based on information the Company received from the Plan and is certified by the Plan’s actuary, is “critical and declining” for the Plan’s two most recent fiscal years ending December 31, 2017 and 2016. Among other factors, plans in the “critical and declining” zone are generally less than 65% funded and projected to become insolvent within the next 15 years (or 20 years depending on the ratio of active-to-inactive participants). A rehabilitation plan has been implemented by the trustees of the Plan, and the CBAs that cover warehouse personnel and drivers in the Bellefontaine and Lima, Ohio distribution centers have permanent surcharges imposed due to the failure to adopt the trustee recommended rehabilitation plan. Refer to Note 9, Commitments and Contingencies, for further information regarding the Company’s participation in the Central States Plan. As of the date the consolidated financial statements were issued, Form 5500 was not available for the plan year ended December 31, 2017. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income or Loss | 12 Months Ended |
Dec. 30, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income or Loss | Note 12 – 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 benefit obligation adjustments. Changes in AOCI are as follows: (In thousands) 2017 2016 2015 Balance at beginning of the year, net of tax $ (11,437 ) $ (11,447 ) $ (11,655 ) Other comprehensive loss before reclassifications (2,448 ) (643 ) (455 ) Income tax benefit 934 236 114 Other comprehensive loss, net of tax, before reclassifications (1,514 ) (407 ) (341 ) Amortization of amounts included in net periodic benefit cost (a) 799 657 884 Income tax expense (b) (302 ) (240 ) (335 ) Amounts reclassified out of AOCI, net of tax 497 417 549 Other comprehensive (loss) income, net of tax (1,017 ) 10 208 Reclassification of stranded tax effects (c) (2,682 ) — — Balance at end of the year, net of tax $ (15,136 ) $ (11,437 ) $ (11,447 ) (a) 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. (b) Reclassified from AOCI into Income taxes expense. (c) Refer to Note 1, Summary of Significant Accounting Policies and Basis of Presentation, for a discussion of the impact of early adoption of ASU 2018-02. |
Income Tax
Income Tax | 12 Months Ended |
Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Note 13 – Income Tax The income tax provision for continuing operations is made up of the following components: (In thousands) 2017 2016 2015 Current income tax expense: Federal $ 366 $ 22,936 $ 31,437 State 528 3,210 3,144 Total current income tax expense 894 26,146 34,581 Deferred income tax (benefit) expense: Federal (72,842 ) 6,509 3,255 State (7,079 ) 252 (743 ) Total deferred income tax (benefit) expense (79,921 ) 6,761 2,512 Total income tax (benefit) expense $ (79,027 ) $ 32,907 $ 37,093 A reconciliation of the statutory federal rate to the effective rate is as follows: 2017 2016 2015 Federal statutory income tax rate 35.0 % 35.0 % 35.0 % Federal rate change effect on deferred taxes 19.7 — — State taxes, net of federal income tax benefit 3.1 2.5 1.6 Stock compensation 1.0 — — Other, net 0.8 (0.6 ) 0.5 Charitable product donations 0.4 (0.5 ) (0.3 ) Tax credits 0.2 — — Domestic production activities deduction 0.1 (0.3 ) (0.2 ) Non-deductible expenses (0.3 ) 0.5 0.4 Effective income tax rate 60.0 % 36.6 % 37.0 % On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to reducing the U.S. federal corporate tax rate from 35 percent to 21 percent, In connection with initial analysis of the impact of the Tax Act, the Company recorded a discrete income tax benefit of $26.0 million in the period ending December 30, 2017 associated with the re-measurement of deferred tax assets and liabilities as a result of the reduction in the U.S. federal corporate tax rate. The Company has not completed its accounting for the income tax effects of certain elements of the Tax Act, but recorded provisional adjustments based on reasonable estimates. Those estimates may be impacted by the need for further analysis and future clarification and guidance regarding available tax accounting methods and elections, state tax conformity to federal tax changes and expected changes to U.S. Treasury regulations. The Company anticipates these estimates will be finalized on or before the due date of the federal return, which is October 15, 2018. The Company’s 2018 tax provision will be recorded at an effective rate that contemplates the new lower statutory rate, and is currently anticipated to be between 23% and 24%. Deferred tax assets and liabilities resulting from temporary differences as of December 30, 2017 and December 31, 2016 are as follows: December 30, December 31, (In thousands) 2017 2016 Deferred tax assets: Employee benefits $ 19,311 $ 30,626 Accrued workers' compensation 1,620 2,624 Allowance for doubtful accounts 1,974 2,945 Intangible assets 56 2,060 Restructuring 2,322 6,087 Deferred revenue 1,552 2,990 Accrued rent 3,853 3,555 Accrued insurance 921 1,279 All other 2,725 4,417 Total deferred tax assets 34,334 56,583 Deferred tax liabilities: Property and equipment 34,199 52,401 Inventory 31,454 46,332 Goodwill 10,083 79,904 All other 648 1,189 Total deferred tax liabilities 76,384 179,826 Net deferred tax liability $ 42,050 $ 123,243 A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: December 30, December 31, (In thousands) 2017 2016 Balance at beginning of year $ 2,369 $ 2,211 Gross increases - tax positions taken in prior years 213 184 Gross decreases - tax positions taken in prior years (123 ) (2 ) Gross increases - tax positions taken in current year 872 718 Lapse of statute of limitations (923 ) (742 ) Balance at end of year $ 2,408 $ 2,369 Unrecognized tax benefits of $2.0 million are set to expire prior to December 29, 2018. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense. The amount of unrecognized tax benefits, including interest and penalties, that would reduce the Company’s effective income tax rate if recognized in future periods was $1.4 million as of December 30, 2017. SpartanNash or its subsidiaries file income tax returns with federal, state and local tax authorities within the United States. With few exceptions, SpartanNash is no longer subject to U.S. federal, state or local examinations by tax authorities for fiscal years before December 28, 2013. Income tax returns related to the former Nash-Finch Company, with few exceptions, are no longer subject to U.S. federal, state or local examinations by tax authorities. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 14 – Stock-Based Compensation The Company has a shareholder-approved 10-year stock incentive plan covering 2,500,000 shares of SpartanNash’s common stock. The SpartanNash Company Stock Incentive Plan of 2015 (the “2015 Plan”) 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. Shares issued, as a result of stock option exercises, will be funded with the issuance of new shares. Holders of restricted stock and stock awards are entitled to participate in cash dividends and dividend equivalents. As of December 30, 2017, a total of 1,947,030 shares remained unissued under the 2015 Plan. All outstanding unvested stock options and unvested shares of restricted stock vest immediately upon a “Change in Control,” as defined by the Plan. The Company has not issued any stock options since 2009 and all outstanding options are vested. The following table summarizes stock option activity for 2017, 2016 and 2015: Weighted Weighted Average Average Remaining Aggregate Shares Exercise Contractual Intrinsic Value Under Options Price Life Years (in thousands) Options outstanding and exercisable at January 3, 2015 494,483 $ 20.61 3.30 $ 2,772 Exercised (185,627 ) 19.72 1,543 Cancelled/Forfeited (63 ) 11.50 Options outstanding and exercisable at January 2, 2016 308,793 21.15 2.46 773 Exercised (107,338 ) 23.46 1,043 Cancelled/Forfeited (938 ) 14.36 Options outstanding and exercisable at December 31, 2016 200,517 19.94 1.65 3,929 Exercised (152,589 ) 21.02 1,832 Cancelled/Forfeited — — Options outstanding and exercisable at December 30, 2017 47,928 $ 16.52 1.07 $ 487 Cash received from option exercises was $3.2 million, $2.5 million and $3.7 million in 2017, 2016 and 2015, respectively. Restricted shares awarded to associates vest ratably over a four-year service period and over one year for grants to the Board of Directors. Awards are subject to forfeiture and certain transfer restrictions prior to vesting. Compensation expense, representing the fair value of the stock at the measurement date of the award, is recognized over the required service period. The following table summarizes restricted stock activity for 2017, 2016 and 2015: Weighted Average Grant-Date Shares Fair Value Outstanding and nonvested at January 3, 2015 600,653 $ 23.08 Granted 314,595 26.59 Vested (265,737 ) 23.19 Forfeited (11,956 ) 23.85 Outstanding and nonvested at January 2, 2016 637,555 24.75 Granted 314,944 28.34 Vested (255,156 ) 24.56 Forfeited (37,200 ) 25.80 Outstanding and nonvested at December 31, 2016 660,143 26.48 Granted 296,297 34.68 Vested (258,183 ) 25.90 Forfeited (84,513 ) 29.11 Outstanding and nonvested at December 30, 2017 613,744 $ 30.32 The total fair value of shares vested was $9.3 million, $6.6 million and $7.6 million in 2017, 2016 and 2015, respectively. Stock-based compensation expense recognized and included in “Selling, general and administrative expenses” in the consolidated statements of operations, and related tax benefits were as follows: (In thousands) 2017 2016 2015 Restricted stock $ 9,611 $ 7,936 $ 7,240 Tax benefits (3,440 ) (2,976 ) (2,758 ) Stock-based compensation expense, net of tax $ 6,171 $ 4,960 $ 4,482 As of December 30, 2017, total unrecognized compensation cost related to non-vested share-based awards granted under the stock incentive plans was $4.0 million for restricted stock. The remaining compensation costs not yet recognized are expected to be recognized over a weighted average period of 2.3 years for restricted stock. All compensation costs related to stock options have been recognized. The Company recognized tax deductions of $11.6 million, $8.0 million and $9.5 million related to the exercise of stock options and the vesting of restricted stock in 2017, 2016 and 2015, respectively. The Company has a stock bonus plan covering 300,000 shares of SpartanNash common stock. Under the provisions of this plan, certain officers and key associates may elect to receive a portion of their annual bonus in common stock rather than cash and will be granted additional shares of common stock worth 20% of the portion of the bonus they elect to receive in stock. After the shares are issued, the holder is not able to sell or otherwise transfer the shares until the end of the holding period, which is currently 24 months. Compensation expense is recorded based upon the market price of the stock as of the measurement date. A total of 14,726 shares remained unissued under the stock bonus plan at December 30, 2017. The Company also has an associate stock purchase plan covering 200,000 shares of SpartanNash common stock. The plan provides that associates of the Company may purchase shares at 95% of the fair market value. As of December 30, 2017, a total of 81,511 shares had been issued under the plan. |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 30, 2017 | |
Risks And Uncertainties [Abstract] | |
Concentration of Credit Risk | Note 15 – Concentration of Credit Risk The Company may provide financial assistance in the form of loans to certain independent retailers for inventories, store fixtures and equipment and store improvements. Loans are generally secured by liens on real estate, inventory and/or equipment, personal guarantees and other types of collateral, and are generally repayable over a period of five to ten years. The Company establishes allowances for doubtful accounts based upon periodic assessments of the credit risk of specific customers, collateral value, historical trends and other information. The Company believes that adequate provisions have been recorded for any doubtful accounts. In addition, the Company may guarantee debt and lease obligations of independent retailers. In the event these retailers are unable to meet their debt service payments or otherwise experience an event of default, the Company would be unconditionally liable for the outstanding balance of their debt and lease obligations, which would be due in accordance with the underlying agreements. In the ordinary course of business, the Company may advance funds to certain independent retailers which are earned by the retailers primarily through achieving specified purchase volume requirements, as outlined in their supply agreements with the Company, or in limited instances, for remaining a SpartanNash customer for a specified time period. These advances must be repaid if the purchase volume requirements are not met or if the retailer no longer remains a customer for the specified time period. As of December 30, 2017, the Company has an unearned advanced amount to one independent retailer for an amount representing approximately two percent of the Company’s total assets. The Company’s collateral related to the advanced funds is a security interest in select business assets of the independent retailer’s stores, including select real property assets and other collateral, including a personal guarantee, from the shareholder. Despite the collateral, the Company may be unable to realize the entire unearned portion of the funds advanced to this independent retailer, and accordingly, has established a reserve of $4.9 million related to the advance. During the fourth quarter of 2017, and in the context of a state law receivership proceeding, the customer rationalized its retail store base and entered into a new supply agreement with the Company, and assumed the obligation of the original agreement. Based on the expected cash flows generated from sales to this customer and consideration of the previously mentioned collateral, the Company believes it is adequately reserved as of December 30, 2017. However, if the customer’s future performance and related cash flows are negatively impacted by changes in economic, industry or market conditions, including changes in the business climate and competition, the Company may be unable to realize the remaining unearned portion of the advanced funds. Given the uncertainty regarding the previously mentioned factors that could impact the customer’s future performance As of December 30, 2017, the Company has guaranteed bank debt for one independent retailer in the amount of $1.5 million. This guarantee, which is secured by certain business assets and personal guarantees of the retailer, represents the maximum undiscounted payments the Company would be required to make in the event of default. The Company believes this independent retailer will be able to perform under the loan agreement and that no payments will be required and no loss will be incurred under the guarantee. The fair value of the obligation assumed under the guarantee is not material. In the ordinary course of business, the Company also subleases and assigns various leases to third parties. As of December 30, 2017, the Company estimates the present value of its maximum potential obligations for subleases and assigned leases to be approximately $6.4 million and $13.8 million, respectively. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 30, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Note 16 – Supplemental Cash Flow Information Supplemental cash flow information is as follows: (In thousands) 2017 2016 2015 Non-cash financing activities: Issuance of note payable as consideration for acquisition $ 2,460 $ — $ 2,000 Recognition of investment in direct financing lease 2,295 — — Recognition of capital lease obligations 588 3,536 3,236 Derecognition of capital lease obligations — (6,068 ) — Deferred gain on derecognition of capital lease obligations — 3,052 — Non-cash investing activities: Capital expenditures included in accounts payable 5,418 5,465 8,896 Derecognition of fixed assets under direct financing lease 2,295 — — Capital lease asset additions 588 3,536 3,236 Capital lease asset disposals — (3,016 ) — Acquisition financed through issuance of note payable 2,460 — 2,000 Receipt of notes receivable on sale of assets — — 4,531 Other supplemental cash flow information: Cash paid for interest 22,818 16,184 19,178 Cash paid for income taxes 10,657 35,836 23,531 |
Reporting Segment Information
Reporting Segment Information | 12 Months Ended |
Dec. 30, 2017 | |
Segment Reporting [Abstract] | |
Reporting Segment Information | Note 17 – Reporting Segment Information SpartanNash sells and distributes products that are typically found in supermarkets and discount stores. The operating segments reflect the manner in which the business is managed and how the Company allocates resources and assesses performance internally. The Company’s chief operating decision maker is the Chief Executive Officer, who determines the allocation of resources and, through a regular review of financial information, assesses the performance of the operating segments. The business is classified by management into three reportable segments: Food Distribution, Military and Retail. These reportable segments are three distinct businesses, each with a different customer base, management structure, and basis for determining budgets, forecasts, and executive compensation. The Company reviews its reportable segments on an annual basis, or more frequently if events or circumstances indicate a change in reportable segments has occurred. The Company’s Food Distribution segment, consisting of 13 distribution centers as well as facilities to process fresh produce, proteins, and meal kits, supplies grocery products, including dry groceries, produce, dairy products, meat, delicatessen items, bakery goods, frozen food, seafood, floral products, general merchandise, beverages, tobacco products, health and beauty care products and pharmacy primarily to a diverse group of independent retailers, national retailers, food service distributors and the Company’s corporate owned retail stores. The Company also offers certain back office services (e.g., accounting, payroll, marketing, etc.) to its independent retail customers. These services are not material to the Company’s financial statements. Sales to independent retailers and inter-segment sales are recorded based upon both a “cost plus” model and a “variable mark-up” model, which vary by commodity and servicing distribution center. To supply its wholesale customers, the Company operates a fleet of tractors, conventional trailers and refrigerated trailers and also provides managed freight solutions. The Military segment contracts with manufacturers and brokers to distribute a wide variety of grocery products, including dry groceries, beverages, meat, and frozen foods, primarily to U.S. military commissaries and exchanges from its 7 distribution centers, two of which are shared with the Food Distribution segment. The contracts typically specify the commissaries and exchanges to supply on behalf of the manufacturer, the manufacturer’s products to be supplied, service and delivery requirements and pricing and payment terms. The Company is also the DeCA exclusive worldwide supplier of private brand grocery and related products to U.S. military commissaries. The Company procures the grocery and related products from various manufacturers, and upon receiving customer orders from DeCA, either delivers the products to the U.S. military commissaries itself or partners with Coastal Pacific Food Distributors to deliver the products on its behalf. The Retail segment operated 145 corporate owned retail stores and 31 fuel centers, predominantly in the Midwest region, as of December 30, 2017. The Company’s retail stores typically offer dry groceries, produce, dairy products, meat, delicatessen items, bakery goods, frozen food, seafood, floral products, general merchandise, beverages, tobacco products and health and beauty care products. The Company also offered pharmacy services in 87 of its corporate owned retail stores as of December 30, 2017. Identifiable assets represent total assets directly associated with the reporting segments. Eliminations in assets identified to segments include intercompany receivables, payables and investments. The following tables set forth information about the Company by reporting segment: Food (In thousands) Distribution Military Retail Total 2017 Net sales to external customers $ 3,992,192 $ 2,144,022 $ 1,991,868 $ 8,128,082 Inter-segment sales 885,872 — — 885,872 Merger/acquisition and integration 6,244 1,522 335 8,101 Goodwill impairment — — 189,027 189,027 Restructuring charges and asset impairment 1,317 500 37,615 39,432 Depreciation and amortization 30,255 11,626 41,359 83,240 Operating earnings (loss) 83,296 7,014 (196,626 ) (106,316 ) Capital expenditures 25,990 6,482 38,434 70,906 2016 Net sales to external customers $ 3,454,541 $ 2,197,014 $ 2,083,045 $ 7,734,600 Inter-segment sales 918,095 — — 918,095 Merger/acquisition and integration 3,703 1 3,255 6,959 Restructuring charges (gains) and asset impairment 5,068 (473 ) 27,521 32,116 Depreciation and amortization 21,397 11,484 44,365 77,246 Operating earnings 85,093 12,160 11,514 108,767 Capital expenditures 19,075 6,447 47,907 73,429 2015 Net sales to external customers $ 3,305,094 $ 2,207,161 $ 2,139,718 $ 7,651,973 Inter-segment sales 973,512 — — 973,512 Merger/acquisition and integration 2,037 — 6,396 8,433 Restructuring (gains) charges and asset impairment (216 ) 1,048 7,970 8,802 Depreciation and amortization 26,127 12,081 45,126 83,334 Operating earnings 78,841 17,059 26,975 122,875 Capital expenditures 17,967 3,768 57,659 79,394 December 30, December 31, (In thousands) 2017 2016 Total Assets Food Distribution $ 1,085,621 $ 776,725 Military 432,818 395,737 Retail 533,912 754,625 Discontinued operations 3,446 3,249 Total $ 2,055,797 $ 1,930,336 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: (In thousands, except percentages) 2017 2016 2015 Center store (a) $ 4,877,289 60.0 % $ 4,908,142 63.5 % $ 4,845,763 63.3 % Fresh (b) 2,771,942 34.1 2,359,829 30.5 2,373,829 31.0 Pharmacy 352,177 4.3 356,010 4.6 310,377 4.1 Fuel 126,674 1.6 110,619 1.4 122,004 1.6 Consolidated net sales $ 8,128,082 100.0 % $ 7,734,600 100.0 % $ 7,651,973 100.0 % (a) Consists primarily of general merchandise, grocery, beverages, snacks, tobacco products and frozen foods (b) Consists primarily of produce, meat, dairy, deli, bakery, prepared proteins, seafood and floral |
Quarterly Financial Information
Quarterly Financial Information (unaudited) | 12 Months Ended |
Dec. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (unaudited) | Note 18- Quarterly Financial Information (Unaudited) Earnings per share amounts for each quarter are required to be computed independently and may not equal the amount computed for the total year. 2017 Full Year 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter (In thousands, except per share amounts) (52 Weeks) (12 Weeks) (12 Weeks) (12 Weeks) (16 Weeks) Net sales $ 8,128,082 $ 1,924,225 $ 1,906,644 $ 1,894,709 $ 2,402,504 Gross profit 1,144,909 254,815 261,692 271,026 357,376 Merger/acquisition and integration 8,101 1,070 2,392 622 4,017 Goodwill impairment 189,027 — 189,027 — — Restructuring charges (gains) and asset impairment 39,432 2,799 35,626 (14 ) 1,021 (Loss) earnings before income taxes and discontinued operations (131,644 ) 12,492 (199,897 ) 33,327 22,434 (Loss) earnings from continuing operations (52,617 ) 34,710 (123,452 ) 21,060 15,065 Loss from discontinued operations, net of taxes (228 ) (103 ) (54 ) (31 ) (40 ) Net (loss) earnings $ (52,845 ) $ 34,607 $ (123,506 ) $ 21,029 $ 15,025 (Loss) earnings from continuing operations per share: Basic $ (1.41 ) $ 0.94 $ (3.31 ) $ 0.56 $ 0.40 Diluted (1.41 ) 0.94 (3.31 ) 0.56 0.40 Net (loss) earnings per share: Basic $ (1.41 ) $ 0.94 $ (3.32 ) $ 0.56 $ 0.40 Diluted (1.41 ) 0.94 (3.32 ) 0.56 0.40 Dividends $ 24,704 $ 6,055 $ 6,149 $ 6,245 $ 6,255 2016 Full Year 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter (In thousands, except per share amounts) (52 Weeks) (12 Weeks) (12 Weeks) (12 Weeks) (16 Weeks) Net sales $ 7,734,600 $ 1,828,183 $ 1,800,085 $ 1,827,562 $ 2,278,770 Gross profit 1,111,494 259,258 255,295 262,699 334,242 Merger/acquisition and integration 6,959 2,722 2,427 913 897 Restructuring charges and asset impairment 32,116 8,402 2,662 5,748 15,304 Earnings before income taxes and discontinued operations 89,963 20,079 25,594 28,303 15,987 Earnings from continuing operations 57,056 12,806 16,730 17,560 9,960 (Loss) earnings from discontinued operations, net of taxes (228 ) 39 (82 ) (76 ) (109 ) Net earnings $ 56,828 $ 12,845 $ 16,648 $ 17,484 $ 9,851 Earnings from continuing operations per share: Basic $ 1.52 $ 0.34 $ 0.45 $ 0.47 $ 0.27 Diluted 1.52 0.34 0.45 0.47 0.27 Net earnings per share: Basic $ 1.52 $ 0.34 $ 0.44 $ 0.47 $ 0.26 Diluted 1.51 0.34 0.44 0.47 0.26 Dividends $ 22,496 $ 5,623 $ 5,620 $ 5,621 $ 5,632 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 30, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation: The consolidated 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”). Intercompany accounts and transactions have been eliminated. |
Fiscal Year | Fiscal Year: The Company’s fiscal year end is the Saturday nearest to December 31. The following discussion is as of and for the fiscal years ending or ended December 29, 2018 ("2018"), December 30, 2017 (“2017” or “current year”), December 31, 2016 (“2016” or “prior year”) and January 2, 2016 (“2015”), all of which include 52 weeks. All fiscal quarters are 12 weeks, except for the Company’s first quarter, which is 16 weeks. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported therein. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods might differ from those estimates. |
Revenue Recognition | Revenue Recognition: The Company recognizes revenue when the sales price is fixed or determinable, collectability is reasonably assured, and the customer takes possession of the merchandise. The Military segment recognizes revenues upon the delivery of the product to the commissary or commissaries designated by the Defense Commissary Agency (DeCA), or in the case of overseas commissaries, when the product is delivered to the port designated by DeCA, which is when DeCA takes possession of the merchandise and bears the responsibility for shipping the product to the commissary or overseas warehouse. Revenues from consignment sales are included in the Company’s reported sales on a net basis. The Food Distribution segment recognizes revenues when products are delivered or ancillary services are provided. Sales and excise taxes are excluded from revenue. The Retail segment recognizes revenues from the sale of products at the point of sale. Based upon the nature of the products the Company sells, its customers have limited rights of return which are immaterial. Discounts provided by the Company to customers at the time of sale are recognized as a reduction in sales as the products are sold. The Company does not recognize a sale when it awards customer loyalty points or sells gift cards and gift certificates; rather, a sale is recognized when the customer loyalty points, gift card or gift certificate are redeemed to purchase product. Sales taxes collected from customers are remitted to the appropriate taxing jurisdictions and are excluded from sales revenue as the Company considers itself a pass-through conduit for collecting and remitting sales taxes. |
Cost of Sales | Cost of Sales: Cost of sales represents the cost of inventory sold during the period, which for all non-production operations includes purchase costs, in-bound freight, physical inventory adjustments, markdowns and promotional allowances and excludes warehousing costs, depreciation and other administrative expenses. For the Company’s food processing operations, cost of sales includes direct product and production costs, inbound freight, purchasing and receiving costs, utilities, depreciation, and other indirect production costs and excludes out-bound freight and other administrative expenses. As a result, the Company’s cost of sales and gross profit may not be identical to similarly titled measures reported by other companies. Vendor allowances and credits that relate to the Company’s buying and merchandising activities consist primarily of promotional allowances, which are generally allowances on purchased quantities and, to a lesser extent, slotting allowances, which are billed to vendors for the Company’s merchandising costs such as setting up warehouse infrastructure. Vendor allowances are recognized as a reduction in cost of sales when the related product is sold. Lump sum payments received for multi-year contracts are amortized over the life of the contracts based on contractual terms. The distribution segments include shipping and handling costs in the selling, general and administrative section of operating expenses on the consolidated statement of operations. |
Cash and Cash Equivalents | Cash and Cash Equivalents: Cash and cash equivalents consist of cash and highly liquid investments with an original maturity of three months or less at the date of purchase. |
Accounts and Notes Receivable | Accounts and Notes Receivable: Accounts and notes receivable are shown net of allowances for credit losses of $2.0 million and $6.7 million as of December 30, 2017 and December 31, 2016, respectively. The Company evaluates the adequacy of its allowances by analyzing the aging of receivables, customer financial condition, historical collection experience, the value of collateral and other economic and industry factors. Actual collections may differ from historical experience, and if economic, business or customer conditions deteriorate significantly, adjustments to these reserves may be required. When the Company becomes aware of factors that indicate a change in a specific customer’s ability to meet its financial obligations, the Company records a specific reserve for credit losses. Operating results include bad debt expense of $1.5 million, $1.4 million and $2.1 million for 2017, 2016 and 2015, respectively. |
Inventory Valuation | Inventory Valuation: Inventories are valued at the lower of cost or market. Approximately 86.9% and 86.7% of the Company’s inventories were valued on the last-in, first-out (LIFO) method at December 30, 2017 and December 31, 2016, respectively. If replacement cost had been used, inventories would have been $50.4 million and $47.6 million higher at December 30, 2017 and December 31, 2016, respectively. The replacement cost method utilizes the most current unit purchase cost to calculate the value of inventories. During 2017, 2016 and 2015, certain inventory quantities were reduced. The reductions resulted in liquidation of LIFO inventory carried at lower costs prevailing in prior years, the effect of which decreased the LIFO provision in 2017, 2016 and 2015 by $0.2 million, $0.2 million and $0.6 million, respectively. The Company accounts for its Food Distribution and Military inventory using a perpetual system and utilizes the retail inventory method (“RIM”) to value inventory for center store products in the Retail segment. Under RIM, inventory is stated at cost with cost of sales and gross margin calculated by applying a cost ratio to the retail value of inventories. Fresh, pharmacy and fuel products are accounted for at cost in the Retail segment. The Company evaluates inventory shortages throughout the year based on actual physical counts in its facilities. The Company records allowances for inventory shortages based on the results of recent physical counts to provide for estimated shortages from the last physical count to the financial statement date. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets: Goodwill represents the excess purchase price over the fair value of tangible net assets acquired in business combinations after amounts have been allocated to intangible assets. Goodwill is not amortized, but is reviewed for impairment during the last quarter of each year, or whenever events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount, using a discounted cash flow model and comparable market values of each reporting segment. Measuring the fair value of reporting units is a Level 3 measurement under the fair value hierarchy. See Note 8, Fair Value Measurements, for a discussion of levels. Intangible assets primarily consist of trade names, customer relationships, favorable lease agreements, pharmacy prescription lists, franchise agreements and fees, non-compete agreements and liquor licenses. The following assets are amortized on a straight-line basis over the period of time in which their expected benefits will be realized: favorable leases (related lease terms), prescription lists and customer relationships (period of expected benefit reflecting the pattern in which the economic benefits are consumed), non-compete agreements and franchise fees (length of agreements), and trade names with definite lives (expected life of the assets). Indefinite-lived trade names are not amortized but are tested at least annually for impairment, and liquor licenses are also not amortized as they have indefinite lives. Intangible assets are included in “Other Assets, net” in the consolidated balance sheets. |
Property and Equipment | Property and Equipment: Property and equipment are recorded at cost. Expenditures which improve or extend the life of the respective assets are capitalized, whereas expenditures for normal repairs and maintenance are charged to operations as incurred. Depreciation expense on land improvements, buildings and improvements, and equipment is computed using the straight-line method as follows: Land improvements 15 years Buildings and improvements 15 to 40 years Equipment 3 to 15 years Property under capital leases and leasehold improvements are amortized on a straight-line basis over the shorter of the remaining terms of the leases or the estimated useful lives of the assets. Internal use software is included in property and equipment and amounted to $30.7 million and $32.9 million as of December 30, 2017 and December 31, 2016, respectively. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets: The Company reviews and evaluates long-lived assets for impairment when events or circumstances indicate that the carrying amount of an asset may not be recoverable. When the undiscounted expected future cash flows are not sufficient to recover an asset’s carrying amount, the fair value is compared to the carrying value to determine the impairment loss to be recorded. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value, less the cost to sell. Fair values are determined by independent appraisals or expected sales prices based upon market participant data developed by third party professionals or by internal licensed real estate professionals. Estimates of future cash flows and expected sales prices are judgments based upon the Company’s experience and knowledge of operations. These estimates project cash flows several years into the future and are affected by changes in the economy, real estate market conditions and inflation. |
Reserves for Closed Properties | Reserves for Closed Properties: The Company records reserves for closed properties that are subject to long-term lease commitments based upon the future minimum lease payments and related ancillary costs from the date of closure to the end of the remaining lease term, net of estimated sublease rentals that could be reasonably expected to be obtained for the property. Future cash flows are based on contractual lease terms and knowledge of the geographic area in which the closed site is located. These estimates are subject to multiple factors, including inflation, ability to sublease the property and other economic conditions. Internally developed estimates of sublease rentals are based upon the geographic areas in which the properties are located, the results of previous efforts to sublease similar properties, and the current economic environment. The reserved expenses are paid over the remaining lease terms, which range from one to 11 years. Adjustments to closed property reserves primarily relate to changes in subtenant income or actual exit costs differing from original estimates. Adjustments are made for changes in estimates in the period in which the changes become known. The current portion of the future lease obligations of stores is included in “Other accrued expenses,” and the long-term portion is included in “Other long-term liabilities” in the consolidated balance sheets. |
Debt Issuance Costs | Debt Issuance Costs : Debt issuance costs are amortized over the term of the related financing agreement and are included as a direct deduction from the carrying amount of the related debt liability in “Long-term debt and capital lease obligations” in the consolidated balance sheets. |
Insurance Reserves | Insurance Reserves: SpartanNash is self-insured through self-insurance retentions or high deductible programs for workers’ compensation, general liability, and automobile liability, and is also self-insured for healthcare costs. Self-insurance liabilities are recorded based on claims filed and an estimate of claims incurred but not yet reported. Workers’ compensation, general liability and automobile liabilities are actuarially estimated based on available historical information on an undiscounted basis. The Company has purchased stop-loss coverage to limit its exposure to any significant exposure on a per claim basis for its self-insurance retentions and high deductible programs. On a per claim basis, the Company’s exposure is up to $0.5 million for workers’ compensation, general liability and automobile liability and $0.5 million for healthcare per covered life per year. A summary of changes in the Company’s self-insurance liability is as follows: (In thousands) 2017 2016 2015 Balance at beginning of year $ 14,730 $ 14,466 $ 19,413 Expenses 54,748 49,560 43,851 Claim payments, net of employee contributions (54,323 ) (49,296 ) (48,798 ) Balance at end of year $ 15,155 $ 14,730 $ 14,466 The current portion of the self-insurance liability was $8.7 million and $8.3 million as of December 30, 2017 and December 31, 2016, respectively, and is included in “Other accrued expenses” in the consolidated balance sheets. The long-term portion was $6.5 million and $6.4 million as of December 30, 2017 and December 31, 2016, respectively, and is included in “Other long-term liabilities” in the consolidated balance sheets. |
Income Taxes | Income Taxes: Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future. Such deferred income tax asset and liability computations are based on enacted tax laws and rates applicable to periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred and other tax assets and liabilities. |
Earnings per share | Earnings per share: Earnings per share (“EPS”) is computed using the two-class method. The two-class method determines EPS for each class of common stock and participating securities according to dividends and their respective participation rights in undistributed earnings. Participating securities include non-vested shares of restricted stock in which the participants have non-forfeitable rights to dividends during the performance period. Diluted EPS includes the effects of stock options. The following table sets forth the computation of basic and diluted EPS for continuing operations: (In thousands, except per share amounts) 2017 2016 2015 Numerator: (Loss) earnings from continuing operations $ (52,617 ) $ 57,056 $ 63,166 Adjustment for loss (earnings) attributable to participating securities 908 (1,011 ) (1,098 ) (Loss) earnings from continuing operations used in calculating earnings per share $ (51,709 ) $ 56,045 $ 62,068 Denominator: Weighted average shares outstanding, including participating securities 37,419 37,483 37,612 Adjustment for participating securities (646 ) (664 ) (654 ) Shares used in calculating basic earnings per share 36,773 36,819 36,958 Effect of dilutive stock options — 73 106 Shares used in calculating diluted earnings per share 36,773 36,892 37,064 Basic (loss) earnings per share from continuing operations $ (1.41 ) $ 1.52 $ 1.68 Diluted (loss) earnings per share from continuing operations $ (1.41 ) $ 1.52 $ 1.67 Weighted average shares issuable upon the exercise of stock options that were not included in the EPS calculations because they were anti-dilutive were 75,159 for 2017. There were no anti-dilutive stock options in 2016 and 2015. |
Stock-Based Compensation | Stock-Based Compensation: All share-based payments to associates are recognized in the consolidated financial statements as compensation cost based on the fair value on the date of grant. The grant date closing price per share of SpartanNash stock is used to estimate the fair value of restricted stock awards and restricted stock units. The value of the portion of awards expected to vest is recognized as expense over the requisite service period. |
Shareholders' Equity | Shareholders’ Equity: The Company’s restated articles of incorporation provide that the Board of Directors may at any time, and from time to time, provide for the issuance of up to 10 million shares of preferred stock in one or more series, each with such designations as determined by the Board of Directors. At December 30, 2017 and December 31, 2016, there were no shares of preferred stock outstanding. |
Advertising Costs | Advertising Costs: The Company’s advertising costs are expensed as incurred and are included in Selling, general and administrative expenses. Advertising expenses were $43.4 million, $46.6 million and $47.7 in 2017, 2016 and 2015, respectively. |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)(“AOCI”): The Company reports comprehensive income (loss) that includes net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to expenses, gains and losses that are not included in net earnings, such as pension and other postretirement liability adjustments, but rather are recorded directly to shareholders’ equity. These amounts are also presented in the consolidated statements of comprehensive income. As of December 30, 2017 and December 31, 2016, AOCI relates to the pension and postretirement plans. |
Discontinued operations | Discontinued operations: Certain of the Company’s Food Distribution and Retail operations have been recorded as discontinued operations. Results of discontinued operations are excluded from the accompanying notes to the consolidated financial statements for all periods presented, unless otherwise noted. Results of discontinued operations reported on the consolidated statements of operations are reported net of tax. |
Adoption of New Accounting Standards and Recently Issued Accounting Standards | Adoption of New Accounting Standards and Recently Issued Accounting Standards In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-02, “Income Statement – Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” ASU 2018-02 allows a reclassification from AOCI to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act, as further described in Note 13, Income Tax, lowered the U.S. federal corporate tax rate, resulting in a re-measurement of the deferred tax assets associated with AOCI. This new guidance allows the discrete tax impact of this re-measurement recorded in the consolidated statement of operations to be reclassified to properly reflect AOCI net of tax under the new statute. The Company early adopted this guidance upon its release. Retrospective application of the guidance resulted in a reclassification from AOCI to retained earnings of $2.7 million in 2017. In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment.” ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating Step 2 of the goodwill impairment test. If a reporting unit fails Step 1 of the goodwill impairment test, entities are no longer required to compute the implied fair value of goodwill following the same procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, the guidance requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and to recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The Company early adopted this guidance as of the beginning of the third quarter of 2017. Refer to Note 5, Goodwill and Other Intangible Assets, for further discussion of goodwill impairment testing. In January 2017, the FASB issued ASU 2017-01, “Business Combinations – Clarifying the Definition of a Business.” ASU 2017-01 narrows the definition of a business and provides a screen to determine when a set of the three elements of a business – inputs, processes, and outputs – are not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. If the screen is not met, the amendments (1) require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) remove the evaluation of whether a market participant could replace missing elements. The amendments provide a framework to assist entities in evaluating whether both an input and a substantive process are present. The new guidance is effective for the Company in 2018. The impact of adoption will depend on the facts and circumstances of future acquisitions, if any, and therefore the Company is unable to estimate the impact of adoption. Adoption will have no impact on the Company’s historical financial statements. In March 2016, the FASB issued 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, accounting for forfeitures, and classification on the statement of cash flows. The Company adopted the new standard in the first quarter of 2017. Accordingly, the tax benefits or deficiencies related to stock-based compensation are reflected in the consolidated statements of operations as a component of the provision for income taxes, whereas they previously were recognized in equity. As a result of the adoption, the Company recognized $1.3 million of tax benefits related to share-based payments in its provision for income taxes in 2017. Additionally, the Company’s consolidated statements of cash flows now include tax benefits as an operating activity, while cash paid on associates’ behalf related to shares withheld for tax purposes is classified as a financing activity. Retrospective application of the cash flow presentation resulted in $2.7 million and $4.0 million increases to both net cash provided by operating activities and net cash used in financing activities for 2016 and 2015, respectively. The Company’s stock compensation expense continues to reflect estimated forfeitures. In February 2016, the FASB issued ASU 2016-02, “Leases.” ASU 2016-02 provides guidance for lease accounting and 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 operations 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 29, 2019. The adoption of this ASU will result in a significant increase to the Company’s consolidated balance sheets for lease liabilities and right-of-use assets. The Company is currently evaluating the other effects of adoption of this ASU on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” The new guidance 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 2018. The adoption will include updates as provided under ASU 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net);” ASU 2016-10, “Identifying Performance Obligations and Licensing;” and ASU 2016-12, “Narrow-Scope Improvements and Practical Expedients.” Adoption is allowed by either the full retrospective or modified retrospective approach. The Company plans to adopt using a full retrospective approach beginning with the first quarter of 2018. The Company has completed its evaluation of adopting the standard and its impact on the consolidated financial statements. From a principal versus agent considerations perspective, the Company has evaluated its significant arrangements and has determined that certain contracts in the Food Distribution segment that are currently reported on the gross basis will be reported on the net basis beginning in 2018. As a result, net sales for 2017 and 2016 will be restated to reflect a reduction of revenues of approximately $160 million and $170 million, respectively, and the corresponding cost of goods sold related to these revenues will be reduced by the same amounts. For these contracts, the Company determined that it did not control the related goods or services before they were transferred to the customers, which resulted in the change in gross to net presentation. As it pertains to the Food Distribution and Military segments, the Company determined that other than grocery products, the promised goods or services outlined in the contracts with customers are immaterial in the context of the contracts. As a result of this determination, the Company is not required to assess whether these promised goods or services are performance obligations, and therefore, revenue recognition practices will not change as there are no additional deliverables for which the transaction price will need to be allocated. Many of the Company’s contracts also include contingent amounts of variable consideration, and the Company concluded there would be no changes to the timing of revenue as the Company currently recognizes these amounts under the presumption that they are determinable and can be estimated. The Company concluded there were no significant changes to revenue recognition in its Retail segment based on how the Company currently records gift card breakage and loyalty rewards, which are immaterial to the consolidated financial statements. In connection with adopting the standard, the Company has implemented key controls and processes related to the completeness and review of contracts, application of the guidance, tracking of performance obligations and other aspects of revenue recognition. In the first quarter of 2018, the Company will be required to make enhanced revenue disclosures, which will include relevant information about contracts with customers, disaggregated revenues, remaining performance obligations and other items requiring significant judgments and estimates used to recognize revenue. As a result, the Company has begun implementing disclosure controls and procedures related to these enhanced revenue disclosures. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Accounting Policies [Abstract] | |
Property and Equipment Estimated Useful Lives | Depreciation expense on land improvements, buildings and improvements, and equipment is computed using the straight-line method as follows: Land improvements 15 years Buildings and improvements 15 to 40 years Equipment 3 to 15 years |
Summary of Changes in the Company's Self-Insurance Liability | A summary of changes in the Company’s self-insurance liability is as follows: (In thousands) 2017 2016 2015 Balance at beginning of year $ 14,730 $ 14,466 $ 19,413 Expenses 54,748 49,560 43,851 Claim payments, net of employee contributions (54,323 ) (49,296 ) (48,798 ) Balance at end of year $ 15,155 $ 14,730 $ 14,466 |
Schedule of Computation of Basic and Diluted EPS for Continuing Operations | The following table sets forth the computation of basic and diluted EPS for continuing operations: (In thousands, except per share amounts) 2017 2016 2015 Numerator: (Loss) earnings from continuing operations $ (52,617 ) $ 57,056 $ 63,166 Adjustment for loss (earnings) attributable to participating securities 908 (1,011 ) (1,098 ) (Loss) earnings from continuing operations used in calculating earnings per share $ (51,709 ) $ 56,045 $ 62,068 Denominator: Weighted average shares outstanding, including participating securities 37,419 37,483 37,612 Adjustment for participating securities (646 ) (664 ) (654 ) Shares used in calculating basic earnings per share 36,773 36,819 36,958 Effect of dilutive stock options — 73 106 Shares used in calculating diluted earnings per share 36,773 36,892 37,064 Basic (loss) earnings per share from continuing operations $ (1.41 ) $ 1.52 $ 1.68 Diluted (loss) earnings per share from continuing operations $ (1.41 ) $ 1.52 $ 1.67 |
Accounts and Notes Receivable (
Accounts and Notes Receivable (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Receivables [Abstract] | |
Summary of Changes in Accounts and Notes Receivable | Accounts and notes receivable are comprised of the following: December 30, December 31, (In thousands) 2017 2016 Customer notes receivable $ 2,555 $ 3,219 Customer accounts receivable 312,214 252,778 Other receivables 31,169 42,142 Allowance for doubtful accounts (1,881 ) (6,571 ) Net current accounts and notes receivable $ 344,057 $ 291,568 Long-term notes receivable 18,322 15,393 Allowance for doubtful accounts (120 ) (139 ) Net long-term notes receivable $ 18,202 $ 15,254 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consists of the following: December 30, December 31, (In thousands) 2017 2016 Land and improvements $ 80,891 $ 76,409 Buildings and improvements 534,835 483,687 Equipment 567,123 529,705 Total property and equipment 1,182,849 1,089,801 Less accumulated depreciation and amortization 582,609 530,079 Property and equipment, net $ 600,240 $ 559,722 |
Goodwill and Other Intangible31
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amount of Goodwill | The Company has three reportable segments; however, no goodwill has existed within the Military segment. Changes in the carrying amount of goodwill were as follows: Food (In thousands) Distribution Retail Total Balance at January 2, 2016: $ 132,367 190,535 (a) $ 322,902 (a) Other — (216 ) (216 ) Balance at December 31, 2016: 132,367 190,319 (a) 322,686 (a) Acquisitions (Note 2) 46,281 — 46,281 Disposals — (1,292 ) (1,292 ) Impairment — (189,027 ) (189,027 ) Balance at December 30, 2017: $ 178,648 $ — (b) $ 178,648 (b) (a) Net of accumulated impairment charges of $86.6 million. (b) Net of accumulated impairment charges of $275.6 million. |
Schedule of Components of Amortized Intangible Assets, Includes in Intangible Assets, Net | The following table reflects the components of amortized intangible assets, included in “Intangible assets, net” on the consolidated balance sheets: December 30, 2017 December 31, 2016 Gross Gross Carrying Accumulated Carrying Accumulated (In thousands) Amount Amortization Amount Amortization Non-compete agreements $ 3,408 $ 397 $ 1,244 $ 978 Favorable leases 8,251 4,332 8,744 3,807 Pharmacy customer prescription lists 6,810 4,210 7,168 3,445 Customer relationships 57,937 4,173 17,633 2,187 Trade names 1,068 386 1,068 236 Franchise fees and other 1,047 381 929 270 Total $ 78,521 $ 13,879 $ 36,786 $ 10,923 |
Summary of Weighted Average Amortization Periods for Amortizable Intangible Assets | The weighted average amortization periods for amortizable intangible assets as of December 30, 2017 are as follows: Non-compete agreements 6.3 years Favorable leases 16.4 years Pharmacy customer prescription lists 7.5 years Customer relationships 16.1 years Trade names 7.0 years Franchise fees and other 9.3 years |
Schedule of Estimated Amortization Expense for Future | Estimated amortization expense for each of the five succeeding fiscal years is as follows: (In thousands) 2018 2019 2020 2021 2022 Amortization expense $ 5,772 $ 5,604 $ 5,267 $ 4,620 $ 4,362 |
Restructuring Charges and Ass32
Restructuring Charges and Asset Impairment (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
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 2017, 2016 and 2015. Reserves for closed properties recorded in the 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 3, 2015 $ 13,988 $ 80 $ 14,068 Provision for closing charges 7,200 — 7,200 Provision for severance — 395 395 Changes in estimates (56 ) (80 ) (136 ) Lease termination adjustments (1,745 ) — (1,745 ) Accretion expense 592 — 592 Payments (5,531 ) (395 ) (5,926 ) Balance at January 2, 2016 14,448 — 14,448 Provision for closing charges 13,925 — 13,925 Provision for severance — 919 919 Changes in estimates 689 (40 ) 649 Lease termination adjustments (2,437 ) — (2,437 ) Accretion expense 675 — 675 Payments (5,368 ) (879 ) (6,247 ) Balance at December 31, 2016 21,932 — 21,932 Provision for closing charges 3,852 — 3,852 Provision for severance — 624 624 Changes in estimates 1,191 (163 ) 1,028 Lease termination adjustments (2,600 ) — (2,600 ) Accretion expense 526 — 526 Payments (7,012 ) (458 ) (7,470 ) Balance at December 30, 2017 $ 17,889 $ 3 $ 17,892 |
Schedule of Restructuring Charges and Asset Impairment | Restructuring charges and asset impairment charges included in the consolidated statements of operations consisted of the following: (In thousands) 2017 2016 2015 Asset impairment charges $ 33,679 $ 15,586 $ 4,220 Provision for closing charges 3,852 13,925 7,200 Loss (gain) on sales of assets related to closed facilities 998 (134 ) (2,997 ) Provision for severance 624 919 395 Other costs associated with distribution center and store closings 1,851 3,692 1,865 Changes in estimates 1,028 865 (136 ) Lease termination adjustments (2,600 ) (2,737 ) (1,745 ) $ 39,432 $ 32,116 $ 8,802 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Debt Instruments | Long-term debt consists of the following: December 30, December 31, (In thousands) 2017 2016 Senior secured revolving credit facility, due December 2021 $ 707,492 $ 359,127 Senior secured term loan, due December 2021 — 26,954 Capital lease obligations (Note 10) 42,904 48,255 Other, 2.61% - 8.75%, due 2019 - 2024 5,972 5,028 Total debt - Principal 756,368 439,364 Unamortized debt issuance costs (6,417 ) (8,265 ) Total debt 749,951 431,099 Less current portion 9,196 17,424 Total long-term debt $ 740,755 $ 413,675 |
Schedule of Interest Rate Terms for Two Remaining Tranches | Borrowings under the three tranches of the credit facility bear interest at the Company’s option as either Eurodollar loans or Base Rate loans, . The interest rate terms for the two remaining tranches are as follows: Credit Outstanding as of Facility December 30, 2017 Tranche (In thousands) Eurodollar Rate Base Rate Tranche A $ 668,093 LIBOR plus 1.25% to 1.50% Greater of: (i) the Federal Funds Rate plus 1.00% to 1.25% (ii) the Eurodollar Rate plus 1.25% to 1.50% (iii) the prime rate plus 0.25% to 0.50% Tranche A-1 $ 39,399 LIBOR plus 2.50% to 2.75% Greater of: (i) the Federal Funds Rate plus 2.00% to 2.25% (ii) the Eurodollar Rate plus 2.50% to 2.75% (iii) the prime rate plus 1.50% to 1.75% |
Schedule of Aggregate Annual Maturities and Scheduled Payments of Long-term Debt | At December 30, 2017, aggregate annual maturities and scheduled payments of long-term debt are as follows: (In thousands) 2018 2019 2020 2021 2022 Thereafter Total Total borrowings $ 9,196 $ 6,969 $ 5,195 $ 710,494 $ 2,846 $ 21,668 $ 756,368 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Book Value and Estimated Fair Value of Debt Instruments, Excluding Debt Financing Costs | At December 30, 2017 and December 31, 2016, the book value and estimated fair value of the Company’s debt instruments, excluding debt financing costs, were as follows: December 30, December 31, (In thousands) 2017 2016 Book value of debt instruments, excluding debt financing costs: Current maturities of long-term debt and capital lease obligations $ 9,196 $ 17,424 Long-term debt and capital lease obligations 747,172 421,940 Total book value of debt instruments 756,368 439,364 Fair value of debt instruments, excluding debt financing costs 757,966 440,759 Excess of fair value over book value $ 1,598 $ 1,395 |
Schedule of Recurring Level 3 Fair Value Measurements of Contingent Consideration Include Unobservable Inputs | The recurring Level 3 fair value measurements of contingent consideration include the following significant unobservable inputs as of December 30, 2017: Unobservable Input Range Discount rate 11.80% Probability of payments 0% - 100% Projected year(s) of payments 2017 - 2019 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Unions Representing Employees and the Expiration Date for Agreements | The facilities covered by CBAs, the unions representing the covered associates and the expiration dates for each existing CBA are provided in the following table: Distribution Center Locations Union Locals Expiration Dates Lima, Ohio IBT 908 January, 2019 Bellefontaine, Ohio GTL Truck Lines, Inc. IBT 908 February, 2019 Bellefontaine, Ohio General Merchandise Service Division IBT 908 February, 2019 Grand Rapids, Michigan IBT 406 October, 2019 Landover, Maryland IBT 639 February, 2021 Norfolk, Virginia IBT 822 April, 2019 Columbus, Georgia IBT 528 September, 2019 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Leases [Abstract] | |
Rental Expense, Net of Sublease Income | Rental expense, net of sublease income, under operating leases consisted of the following: (In thousands) 2017 2016 2015 Minimum rentals $ 55,159 $ 57,478 $ 57,625 Contingent rent (reductions) increases (237 ) 314 267 Sublease rental income (3,407 ) (4,830 ) (5,311 ) Total $ 51,515 $ 52,962 $ 52,581 |
Future Lease Commitments Under Operating Leases and Capital Leases | The Company’s total future lease commitments under operating and capital leases in effect at December 30, 2017 are as follows: Operating Leases Used in Subleased Capital (In thousands) Operations to Others Total Leases 2018 $ 52,613 $ 1,265 $ 53,878 $ 9,198 2019 41,489 1,039 42,528 8,756 2020 33,951 817 34,768 6,593 2021 26,719 694 27,413 4,577 2022 19,779 468 20,247 4,233 Thereafter 67,317 504 67,821 28,862 Total $ 241,868 $ 4,787 $ 246,655 62,219 Interest (19,315 ) Present value of minimum lease obligations 42,904 Current maturities 6,168 Long-term capital lease obligations $ 36,736 |
Assets Held Under Capital Leases | Assets held under capital leases consisted of the following: December 30, December 31, (In thousands) 2017 2016 Building and improvements $ 60,398 $ 61,831 Equipment 3,727 3,403 Assets under capital leases 64,125 65,234 Less accumulated amortization and depreciation 29,518 25,163 Net assets under capital leases $ 34,607 $ 40,071 |
Property and Equipment Owned Assets Leased to Others | Owned assets, included in property and equipment, which are leased to others are as follows: December 30, December 31, (In thousands) 2017 2016 Land and improvements $ 6,515 $ 3,860 Buildings 24,236 13,948 Long-term debt and capital lease obligations 30,751 17,808 Less accumulated amortization and depreciation 8,123 7,625 Net property $ 22,628 $ 10,183 |
Future Minimum Rentals to be Received Under Lease Obligations | Future minimum rentals to be received under lease obligations in effect at December 30, 2017 are as follows: (In thousands) 2018 2019 2020 2021 2022 Thereafter Total Owned property $ 4,194 $ 4,044 $ 3,635 $ 3,359 $ 2,973 $ 16,768 $ 34,973 Leased property 2,708 2,268 2,022 1,545 896 3,731 13,170 Total $ 6,902 $ 6,312 $ 5,657 $ 4,904 $ 3,869 $ 20,499 $ 48,143 |
Associate Retirement Plans (Tab
Associate Retirement Plans (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Benefit Obligations, Pension & Postretirement Benefit Plans | The following tables set forth the actuarial present value of benefit obligations, funded status, changes in benefit obligations and plan assets, weighted average assumptions used in actuarial calculations and components of net periodic benefit costs for the Company’s significant pension and postretirement benefit plans, excluding multi-employer plans. The prepaid, current accrued, and noncurrent accrued benefit costs associated with pension and postretirement benefits are reported in “Other assets, net,” “Accrued payroll and benefits,” and “Postretirement benefits,” respectively, in the consolidated balance sheets. Pension Plan Retiree Medical Plan December 30, December 31, December 30, December 31, (In thousands, except percentages) 2017 2016 2017 2016 Funded Status Projected/Accumulated benefit obligation: Balance at beginning of year $ 80,350 $ 83,398 $ 9,663 $ 9,179 Service cost — — 184 187 Interest cost 2,345 2,977 345 345 Actuarial loss 4,662 1,598 303 213 Benefits paid (7,204 ) (7,623 ) (296 ) (261 ) Balance at end of year $ 80,153 $ 80,350 $ 10,199 $ 9,663 Fair value of plan assets: Balance at beginning of year $ 81,982 $ 84,753 $ — $ — Actual return on plan assets 6,477 4,852 — — Company contributions — — 296 261 Benefits paid (7,204 ) (7,623 ) (296 ) (261 ) Balance at end of year $ 81,255 $ 81,982 $ — $ — Funded (unfunded) status $ 1,102 $ 1,632 $ (10,199 ) $ (9,663 ) Components of net amount recognized in consolidated balance sheets: Noncurrent assets $ 1,102 $ 1,632 $ — $ — Current liabilities — — (417 ) (412 ) Noncurrent liabilities — — (9,782 ) (9,251 ) Net asset (liability) $ 1,102 $ 1,632 $ (10,199 ) $ (9,663 ) Amounts recognized in AOCI: Net actuarial loss $ 18,205 $ 16,938 $ 1,678 $ 1,434 Prior service credit — — (250 ) (408 ) Accumulated other comprehensive loss $ 18,205 $ 16,938 $ 1,428 $ 1,026 Weighted average assumptions at measurement date: Discount rate 3.45% 3.82% 3.72% 4.26% Ultimate health care cost trend rate N/A N/A 5.00% 5.00% |
Components of Net Periodic Pension and Postretirement Benefit Cost (Income) | Pension Plan Retiree Medical Plan (In thousands, except percentages) 2017 2016 2015 2017 2016 2015 Components of net periodic benefit cost (income): Service cost $ — $ — $ — $ 184 $ 187 $ 231 Interest cost 2,345 2,977 3,325 345 345 404 Amortization of prior service cost — — — (158 ) (158 ) (158 ) Expected return on plan assets (3,836 ) (4,269 ) (4,923 ) — — — Recognized actuarial net loss 221 706 827 59 42 174 Net periodic benefit (income) expense $ (1,270 ) $ (586 ) $ (771 ) $ 430 $ 416 $ 651 Settlement expense 548 692 — — — — Total (income) expense $ (722 ) $ 106 $ (771 ) $ 430 $ 416 $ 651 Weighted average assumptions used to determine net periodic benefit cost (income): Discount rate 3.82% 4.04% 3.75% 4.26% 4.55% 4.15% Expected return on plan assets 4.83% 5.05% 5.50% N/A N/A N/A |
Schedule of Amounts Recognized in AOCI | The net actuarial loss and prior service cost included in AOCI and expected to be recognized in net periodic benefit cost in 2018 are as follows: Retiree (In thousands) Pension Plan Medical Plan Prior service credit $ N/A $ (158 ) Net actuarial loss 417 88 |
Assumed Current Healthcare Cost Trend Rates Used to Determine Net Periodic Benefit Cost (Income) | Assumed healthcare cost trend rates have a significant effect on the amounts reported for the Retiree Medical Plan. Assumed current healthcare cost trend rates used to determine net periodic benefit cost (income) were as follows: 2017 2016 2015 Pre-65 N/A 7.50% 7.75% Post-65 8.40% 8.40% 6.85% |
Summary of Actual Assets Allocation | The following table summarizes both the targeted allocation of the Pension Plan’s asset allocation by asset category and actual allocations as of December 30, 2017 and December 31, 2016: Target Actual December 30, December 30, December 31, Asset Category 2017 2017 2016 Equity securities 20.0 % 19.3 % 20.8 % Fixed income 80.0 79.4 76.9 Cash equivalents — 1.3 2.3 Total 100.0 % 100.0 % 100.0 % |
Summary of Fair Value Pension Plan Asset | The fair values of the Pension Plan assets at December 30, 2017 and December 31, 2016, by asset category, are as follows: Fair Value of Assets as of December 30, 2017 (In thousands) Total Level 1 Level 2 Level 3 NAV (a) Mutual funds $ 18,194 $ — $ — $ — $ 18,194 Pooled funds 48,133 — — — 48,133 Money market fund 1,037 — 1,037 — — Guaranteed annuity contract 13,891 — — 13,891 — Total fair value $ 81,255 $ — $ 1,037 $ 13,891 $ 66,327 Fair Value of Assets as of December 31, 2016 (In thousands) Total Level 1 Level 2 Level 3 NAV (a) Mutual funds $ 14,178 $ — $ — $ — $ 14,178 Pooled funds 50,506 — — — 50,506 Money market fund 1,872 — 1,872 — — Guaranteed annuity contract 15,426 — — 15,426 — Total fair value $ 81,982 $ — $ 1,872 $ 15,426 $ 64,684 (a) Assets are measured at net asset value (“NAV”) (or its equivalent) on a non-active market, and therefore, have not been classified in the fair value hierarchy. |
Summary of Reconciliation of Beginning and Ending Balances for Level 3 Assets | Level 3 assets consist of guaranteed annuity contracts. A reconciliation of the beginning and ending balances for Level 3 assets is as follows: (In thousands) December 30, 2017 December 31, 2016 Balance at beginning of year $ 15,426 $ 16,198 Purchases, sales, issuances and settlements, net (2,222 ) (1,733 ) Interest income 552 631 Unrealized gains 135 330 Balance at end of year $ 13,891 $ 15,426 |
Estimated Benefit Payments Expected to be Paid | The following estimated benefit payments are expected to be paid in the following fiscal years: (In thousands) 2018 2019 2020 2021 2022 2022 to 2026 Pension benefits $ 8,668 $ 8,274 $ 7,702 $ 7,843 $ 7,035 $ 26,850 Post-retirement medical benefits 417 463 503 540 575 3,232 |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Income or Loss (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Equity [Abstract] | |
Schedule Of Accumulated Other Comprehensive Income (Loss) | Changes in AOCI are as follows: (In thousands) 2017 2016 2015 Balance at beginning of the year, net of tax $ (11,437 ) $ (11,447 ) $ (11,655 ) Other comprehensive loss before reclassifications (2,448 ) (643 ) (455 ) Income tax benefit 934 236 114 Other comprehensive loss, net of tax, before reclassifications (1,514 ) (407 ) (341 ) Amortization of amounts included in net periodic benefit cost (a) 799 657 884 Income tax expense (b) (302 ) (240 ) (335 ) Amounts reclassified out of AOCI, net of tax 497 417 549 Other comprehensive (loss) income, net of tax (1,017 ) 10 208 Reclassification of stranded tax effects (c) (2,682 ) — — Balance at end of the year, net of tax $ (15,136 ) $ (11,437 ) $ (11,447 ) (a) 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. (b) Reclassified from AOCI into Income taxes expense. (c) Refer to Note 1, Summary of Significant Accounting Policies and Basis of Presentation, for a discussion of the impact of early adoption of ASU 2018-02. |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Provision for Continuing Operations | The income tax provision for continuing operations is made up of the following components: (In thousands) 2017 2016 2015 Current income tax expense: Federal $ 366 $ 22,936 $ 31,437 State 528 3,210 3,144 Total current income tax expense 894 26,146 34,581 Deferred income tax (benefit) expense: Federal (72,842 ) 6,509 3,255 State (7,079 ) 252 (743 ) Total deferred income tax (benefit) expense (79,921 ) 6,761 2,512 Total income tax (benefit) expense $ (79,027 ) $ 32,907 $ 37,093 |
Reconciliation of Statutory Federal Rate to Effective Rate | A reconciliation of the statutory federal rate to the effective rate is as follows: 2017 2016 2015 Federal statutory income tax rate 35.0 % 35.0 % 35.0 % Federal rate change effect on deferred taxes 19.7 — — State taxes, net of federal income tax benefit 3.1 2.5 1.6 Stock compensation 1.0 — — Other, net 0.8 (0.6 ) 0.5 Charitable product donations 0.4 (0.5 ) (0.3 ) Tax credits 0.2 — — Domestic production activities deduction 0.1 (0.3 ) (0.2 ) Non-deductible expenses (0.3 ) 0.5 0.4 Effective income tax rate 60.0 % 36.6 % 37.0 % |
Summary of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities resulting from temporary differences as of December 30, 2017 and December 31, 2016 are as follows: December 30, December 31, (In thousands) 2017 2016 Deferred tax assets: Employee benefits $ 19,311 $ 30,626 Accrued workers' compensation 1,620 2,624 Allowance for doubtful accounts 1,974 2,945 Intangible assets 56 2,060 Restructuring 2,322 6,087 Deferred revenue 1,552 2,990 Accrued rent 3,853 3,555 Accrued insurance 921 1,279 All other 2,725 4,417 Total deferred tax assets 34,334 56,583 Deferred tax liabilities: Property and equipment 34,199 52,401 Inventory 31,454 46,332 Goodwill 10,083 79,904 All other 648 1,189 Total deferred tax liabilities 76,384 179,826 Net deferred tax liability $ 42,050 $ 123,243 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: December 30, December 31, (In thousands) 2017 2016 Balance at beginning of year $ 2,369 $ 2,211 Gross increases - tax positions taken in prior years 213 184 Gross decreases - tax positions taken in prior years (123 ) (2 ) Gross increases - tax positions taken in current year 872 718 Lapse of statute of limitations (923 ) (742 ) Balance at end of year $ 2,408 $ 2,369 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity | The following table summarizes stock option activity for 2017, 2016 and 2015: Weighted Weighted Average Average Remaining Aggregate Shares Exercise Contractual Intrinsic Value Under Options Price Life Years (in thousands) Options outstanding and exercisable at January 3, 2015 494,483 $ 20.61 3.30 $ 2,772 Exercised (185,627 ) 19.72 1,543 Cancelled/Forfeited (63 ) 11.50 Options outstanding and exercisable at January 2, 2016 308,793 21.15 2.46 773 Exercised (107,338 ) 23.46 1,043 Cancelled/Forfeited (938 ) 14.36 Options outstanding and exercisable at December 31, 2016 200,517 19.94 1.65 3,929 Exercised (152,589 ) 21.02 1,832 Cancelled/Forfeited — — Options outstanding and exercisable at December 30, 2017 47,928 $ 16.52 1.07 $ 487 |
Summary of Restricted Stock Activity | The following table summarizes restricted stock activity for 2017, 2016 and 2015: Weighted Average Grant-Date Shares Fair Value Outstanding and nonvested at January 3, 2015 600,653 $ 23.08 Granted 314,595 26.59 Vested (265,737 ) 23.19 Forfeited (11,956 ) 23.85 Outstanding and nonvested at January 2, 2016 637,555 24.75 Granted 314,944 28.34 Vested (255,156 ) 24.56 Forfeited (37,200 ) 25.80 Outstanding and nonvested at December 31, 2016 660,143 26.48 Granted 296,297 34.68 Vested (258,183 ) 25.90 Forfeited (84,513 ) 29.11 Outstanding and nonvested at December 30, 2017 613,744 $ 30.32 |
Summary of Allocation of Stock-Based Compensation Expense in Condensed Consolidated Statements of Operations | Stock-based compensation expense recognized and included in “Selling, general and administrative expenses” in the consolidated statements of operations, and related tax benefits were as follows: (In thousands) 2017 2016 2015 Restricted stock $ 9,611 $ 7,936 $ 7,240 Tax benefits (3,440 ) (2,976 ) (2,758 ) Stock-based compensation expense, net of tax $ 6,171 $ 4,960 $ 4,482 |
Supplemental Cash Flow Inform41
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | Supplemental cash flow information is as follows: (In thousands) 2017 2016 2015 Non-cash financing activities: Issuance of note payable as consideration for acquisition $ 2,460 $ — $ 2,000 Recognition of investment in direct financing lease 2,295 — — Recognition of capital lease obligations 588 3,536 3,236 Derecognition of capital lease obligations — (6,068 ) — Deferred gain on derecognition of capital lease obligations — 3,052 — Non-cash investing activities: Capital expenditures included in accounts payable 5,418 5,465 8,896 Derecognition of fixed assets under direct financing lease 2,295 — — Capital lease asset additions 588 3,536 3,236 Capital lease asset disposals — (3,016 ) — Acquisition financed through issuance of note payable 2,460 — 2,000 Receipt of notes receivable on sale of assets — — 4,531 Other supplemental cash flow information: Cash paid for interest 22,818 16,184 19,178 Cash paid for income taxes 10,657 35,836 23,531 |
Reporting Segment Information (
Reporting Segment Information (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Operating Segment | The following tables set forth information about the Company by reporting segment: Food (In thousands) Distribution Military Retail Total 2017 Net sales to external customers $ 3,992,192 $ 2,144,022 $ 1,991,868 $ 8,128,082 Inter-segment sales 885,872 — — 885,872 Merger/acquisition and integration 6,244 1,522 335 8,101 Goodwill impairment — — 189,027 189,027 Restructuring charges and asset impairment 1,317 500 37,615 39,432 Depreciation and amortization 30,255 11,626 41,359 83,240 Operating earnings (loss) 83,296 7,014 (196,626 ) (106,316 ) Capital expenditures 25,990 6,482 38,434 70,906 2016 Net sales to external customers $ 3,454,541 $ 2,197,014 $ 2,083,045 $ 7,734,600 Inter-segment sales 918,095 — — 918,095 Merger/acquisition and integration 3,703 1 3,255 6,959 Restructuring charges (gains) and asset impairment 5,068 (473 ) 27,521 32,116 Depreciation and amortization 21,397 11,484 44,365 77,246 Operating earnings 85,093 12,160 11,514 108,767 Capital expenditures 19,075 6,447 47,907 73,429 2015 Net sales to external customers $ 3,305,094 $ 2,207,161 $ 2,139,718 $ 7,651,973 Inter-segment sales 973,512 — — 973,512 Merger/acquisition and integration 2,037 — 6,396 8,433 Restructuring (gains) charges and asset impairment (216 ) 1,048 7,970 8,802 Depreciation and amortization 26,127 12,081 45,126 83,334 Operating earnings 78,841 17,059 26,975 122,875 Capital expenditures 17,967 3,768 57,659 79,394 December 30, December 31, (In thousands) 2017 2016 Total Assets Food Distribution $ 1,085,621 $ 776,725 Military 432,818 395,737 Retail 533,912 754,625 Discontinued operations 3,446 3,249 Total $ 2,055,797 $ 1,930,336 |
Summary of Sales by Type of Similar Products and Services | The following table presents sales by type of similar product and services: (In thousands, except percentages) 2017 2016 2015 Center store (a) $ 4,877,289 60.0 % $ 4,908,142 63.5 % $ 4,845,763 63.3 % Fresh (b) 2,771,942 34.1 2,359,829 30.5 2,373,829 31.0 Pharmacy 352,177 4.3 356,010 4.6 310,377 4.1 Fuel 126,674 1.6 110,619 1.4 122,004 1.6 Consolidated net sales $ 8,128,082 100.0 % $ 7,734,600 100.0 % $ 7,651,973 100.0 % (a) Consists primarily of general merchandise, grocery, beverages, snacks, tobacco products and frozen foods (b) Consists primarily of produce, meat, dairy, deli, bakery, prepared proteins, seafood and floral |
Quarterly Financial Informati43
Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | 2017 Full Year 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter (In thousands, except per share amounts) (52 Weeks) (12 Weeks) (12 Weeks) (12 Weeks) (16 Weeks) Net sales $ 8,128,082 $ 1,924,225 $ 1,906,644 $ 1,894,709 $ 2,402,504 Gross profit 1,144,909 254,815 261,692 271,026 357,376 Merger/acquisition and integration 8,101 1,070 2,392 622 4,017 Goodwill impairment 189,027 — 189,027 — — Restructuring charges (gains) and asset impairment 39,432 2,799 35,626 (14 ) 1,021 (Loss) earnings before income taxes and discontinued operations (131,644 ) 12,492 (199,897 ) 33,327 22,434 (Loss) earnings from continuing operations (52,617 ) 34,710 (123,452 ) 21,060 15,065 Loss from discontinued operations, net of taxes (228 ) (103 ) (54 ) (31 ) (40 ) Net (loss) earnings $ (52,845 ) $ 34,607 $ (123,506 ) $ 21,029 $ 15,025 (Loss) earnings from continuing operations per share: Basic $ (1.41 ) $ 0.94 $ (3.31 ) $ 0.56 $ 0.40 Diluted (1.41 ) 0.94 (3.31 ) 0.56 0.40 Net (loss) earnings per share: Basic $ (1.41 ) $ 0.94 $ (3.32 ) $ 0.56 $ 0.40 Diluted (1.41 ) 0.94 (3.32 ) 0.56 0.40 Dividends $ 24,704 $ 6,055 $ 6,149 $ 6,245 $ 6,255 2016 Full Year 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter (In thousands, except per share amounts) (52 Weeks) (12 Weeks) (12 Weeks) (12 Weeks) (16 Weeks) Net sales $ 7,734,600 $ 1,828,183 $ 1,800,085 $ 1,827,562 $ 2,278,770 Gross profit 1,111,494 259,258 255,295 262,699 334,242 Merger/acquisition and integration 6,959 2,722 2,427 913 897 Restructuring charges and asset impairment 32,116 8,402 2,662 5,748 15,304 Earnings before income taxes and discontinued operations 89,963 20,079 25,594 28,303 15,987 Earnings from continuing operations 57,056 12,806 16,730 17,560 9,960 (Loss) earnings from discontinued operations, net of taxes (228 ) 39 (82 ) (76 ) (109 ) Net earnings $ 56,828 $ 12,845 $ 16,648 $ 17,484 $ 9,851 Earnings from continuing operations per share: Basic $ 1.52 $ 0.34 $ 0.45 $ 0.47 $ 0.27 Diluted 1.52 0.34 0.45 0.47 0.27 Net earnings per share: Basic $ 1.52 $ 0.34 $ 0.44 $ 0.47 $ 0.26 Diluted 1.51 0.34 0.44 0.47 0.26 Dividends $ 22,496 $ 5,623 $ 5,620 $ 5,621 $ 5,632 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies and Basis of Presentation - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Significant Accounting Policies And Basis Of Presentation [Line Items] | |||
Allowance for doubtful accounts | $ 2 | $ 6.7 | |
Bad debt expenses | $ 1.5 | $ 1.4 | $ 2.1 |
Inventories valued on LIFO method | 86.90% | 86.70% | |
Under Value of carrying value of inventories than its replacement value | $ 50.4 | $ 47.6 | |
Effect on income due to change in LIFO valuation on liquidation | 0.2 | 0.2 | $ 0.6 |
Capitalized computer software | 30.7 | 32.9 | |
Workers' compensation liability | 0.5 | ||
Health care insurance liability | 0.5 | ||
Current portion of self insurance liability | 8.7 | 8.3 | |
Long term portion of self insurance liability | $ 6.5 | $ 6.4 | |
Weighted average shares not included in EPS calculations | 75,159 | 0 | 0 |
Issuance of preferred stock | 10,000,000 | 10,000,000 | |
Preferred stock, shares outstanding | 0 | 0 | |
Advertising expenses | $ 43.4 | $ 46.6 | $ 47.7 |
Accounting Standards Update 2016-09 [Member] | |||
Significant Accounting Policies And Basis Of Presentation [Line Items] | |||
Recognition of tax benefits in provision for income taxes | 1.3 | ||
Increase in net cash provided by operating activities | 2.7 | 4 | |
Increase in net cash used in financing activities | 2.7 | $ 4 | |
Accounting Standards Update 2014-09 [Member] | |||
Significant Accounting Policies And Basis Of Presentation [Line Items] | |||
Contracts net sales | (160) | $ (170) | |
Accounting Standards Update 2018-02 [Member] | New Accounting Pronouncement, Early Adoption, Effect | |||
Significant Accounting Policies And Basis Of Presentation [Line Items] | |||
Reclassification from AOCI to retained earningsd, on application of accounting guidance | $ 2.7 | ||
Minimum [Member] | |||
Significant Accounting Policies And Basis Of Presentation [Line Items] | |||
Reserved expenses paid over remaining lease term | 1 year | ||
Maximum [Member] | |||
Significant Accounting Policies And Basis Of Presentation [Line Items] | |||
Reserved expenses paid over remaining lease term | 11 years |
Summary of Significant Accoun45
Summary of Significant Accounting Policies and Basis of Presentation - Property And Equipment Estimated Useful Lives (Detail) | 12 Months Ended |
Dec. 30, 2017 | |
Land Improvements [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Minimum [Member] | Buildings and Improvements [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Minimum [Member] | Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Maximum [Member] | Buildings and Improvements [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, useful life | 40 years |
Maximum [Member] | Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Summary of Significant Accoun46
Summary of Significant Accounting Policies and Basis of Presentation - Summary of Changes in SpartanNash's Self-Insurance Liability (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Payables And Accruals [Abstract] | |||
Balance at beginning of year | $ 14,730 | $ 14,466 | $ 19,413 |
Expenses | 54,748 | 49,560 | 43,851 |
Claim payments, net of employee contributions | (54,323) | (49,296) | (48,798) |
Balance at end of year | $ 15,155 | $ 14,730 | $ 14,466 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies and Basis of Presentation - Schedule of Computation of Basic and Diluted EPS For Continuing Operations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Dec. 30, 2017 | Oct. 07, 2017 | Jul. 15, 2017 | Dec. 31, 2016 | Oct. 08, 2016 | Jul. 16, 2016 | Apr. 22, 2017 | Apr. 23, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Numerator: | |||||||||||
(Loss) earnings from continuing operations | $ 34,710 | $ (123,452) | $ 21,060 | $ 12,806 | $ 16,730 | $ 17,560 | $ 15,065 | $ 9,960 | $ (52,617) | $ 57,056 | $ 63,166 |
Adjustment for loss (earnings) attributable to participating securities | 908 | (1,011) | (1,098) | ||||||||
(Loss) earnings from continuing operations used in calculating earnings per share | $ (51,709) | $ 56,045 | $ 62,068 | ||||||||
Denominator: | |||||||||||
Weighted average shares outstanding, including participating securities | 37,419 | 37,483 | 37,612 | ||||||||
Adjustment for participating securities | (646) | (664) | (654) | ||||||||
Shares used in calculating basic earnings per share | 36,773 | 36,819 | 36,958 | ||||||||
Effect of dilutive stock options | 73 | 106 | |||||||||
Shares used in calculating diluted earnings per share | 36,773 | 36,892 | 37,064 | ||||||||
Basic (loss) earnings per share from continuing operations | $ 0.94 | $ (3.31) | $ 0.56 | $ 0.34 | $ 0.45 | $ 0.47 | $ 0.40 | $ 0.27 | $ (1.41) | $ 1.52 | $ 1.68 |
Diluted (loss) earnings per share from continuing operations | $ 0.94 | $ (3.31) | $ 0.56 | $ 0.34 | $ 0.45 | $ 0.47 | $ 0.40 | $ 0.27 | $ (1.41) | $ 1.52 | $ 1.67 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) | Jan. 06, 2017USD ($)ft²State | Dec. 30, 2017USD ($) | Jan. 02, 2016USD ($) | Dec. 31, 2016USD ($) | Jun. 16, 2015USD ($)Store |
Business Acquisition [Line Items] | |||||
Payments to acquire certain assets and assume liabilities in cash | $ 226,939,000 | $ 41,517,000 | |||
Goodwill | 178,648,000 | $ 322,902,000 | $ 322,686,000 | ||
Food Distribution Segment [Member] | |||||
Business Acquisition [Line Items] | |||||
Increase in goodwill, due to updated valuation of long-lived assets | $ 1,300,000 | ||||
Goodwill | 46,300,000 | ||||
Caito Foods Service and Blue Ribbon Transport [Member] | |||||
Business Acquisition [Line Items] | |||||
Payments to acquire certain assets and assume liabilities in cash | 214,600,000 | ||||
Business combination, cash acquired | 2,500,000 | ||||
Business combination, property and equipment acquired | 76,700,000 | ||||
Business combination, Intangible assets acquired | $ 72,900,000 | ||||
Amortization of intangible assets, period | 15 years | ||||
Earn-out opportunities potential to pay sellers | $ 27,400,000 | 3,400,000 | |||
Business combination, contingent consideration liability maximum reimbursement initial purchase price | $ 15,000,000 | ||||
Total acquisition-related costs incurred | 4,900,000 | ||||
Acquisition related costs incurred and recorded in merger/acquisition and integration expense during period | $ 2,700,000 | ||||
Caito Foods Service [Member] | |||||
Business Acquisition [Line Items] | |||||
Service distributors across number of states | State | 21 | ||||
Area of new Fresh Kitchen facility | ft² | 118,000 | ||||
Dan's [Member] | |||||
Business Acquisition [Line Items] | |||||
Total purchase price of assets | $ 32,600,000 | ||||
Number of stores acquired | Store | 6 |
Accounts and Notes Receivable -
Accounts and Notes Receivable - Summary of Changes in Accounts and Notes Receivable (Detail) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Customer notes receivable | $ 2,555 | $ 3,219 |
Customer accounts receivable | 312,214 | 252,778 |
Other receivables | 31,169 | 42,142 |
Allowance for doubtful accounts | (1,881) | (6,571) |
Net current accounts and notes receivable | 344,057 | 291,568 |
Long-term notes receivable | 18,322 | 15,393 |
Allowance for doubtful accounts | (120) | (139) |
Net long-term notes receivable | $ 18,202 | $ 15,254 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 1,182,849 | $ 1,089,801 |
Less accumulated depreciation and amortization | 582,609 | 530,079 |
Property and equipment, net | 600,240 | 559,722 |
Land and Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 80,891 | 76,409 |
Buildings and Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 534,835 | 483,687 |
Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 567,123 | $ 529,705 |
Goodwill and Other Intangible51
Goodwill and Other Intangible Assets - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||
Oct. 07, 2017USD ($) | Dec. 30, 2017USD ($)Segment | Dec. 31, 2016USD ($) | Jan. 02, 2016USD ($) | |
Goodwill And Other Intangible Assets [Line Items] | ||||
Number of reportable segments | Segment | 3 | |||
Goodwill | $ 178,648,000 | $ 322,686,000 | $ 322,902,000 | |
Goodwill impairment | $ 189,027,000 | 189,027,000 | ||
Amortization expenses of intangible assets | 5,500,000 | 3,000,000 | 3,300,000 | |
Indefinite lived intangible assets not amortized | 69,800,000 | 34,300,000 | ||
Military [Member] | ||||
Goodwill And Other Intangible Assets [Line Items] | ||||
Goodwill | 0 | |||
Retail [Member] | ||||
Goodwill And Other Intangible Assets [Line Items] | ||||
Goodwill | $ 190,319,000 | $ 190,535,000 | ||
Goodwill impairment | $ 189,000,000 | $ 189,027,000 |
Goodwill and Other Intangible52
Goodwill and Other Intangible Assets - Summary of Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Oct. 07, 2017 | Dec. 30, 2017 | Dec. 31, 2016 | |
Goodwill [Line Items] | |||
Beginning Balance | $ 322,686 | $ 322,902 | |
Acquisitions (Note 2) | 46,281 | ||
Disposals | (1,292) | ||
Impairment | $ (189,027) | (189,027) | |
Other | (216) | ||
Ending Balance | 178,648 | 322,686 | |
Food Distribution [Member] | |||
Goodwill [Line Items] | |||
Beginning Balance | 132,367 | 132,367 | |
Acquisitions (Note 2) | 46,281 | ||
Ending Balance | 178,648 | 132,367 | |
Retail [Member] | |||
Goodwill [Line Items] | |||
Beginning Balance | 190,319 | 190,535 | |
Disposals | (1,292) | ||
Impairment | $ (189,000) | $ (189,027) | |
Other | (216) | ||
Ending Balance | $ 190,319 |
Goodwill and Other Intangible53
Goodwill and Other Intangible Assets - Summary of Changes in Carrying Amount of Goodwill (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Accumulated impairment charges | $ 275.6 | $ 86.6 | $ 86.6 |
Goodwill and Other Intangible54
Goodwill and Other Intangible Assets - Schedule of Components of Amortized Intangible Assets , Includes in Intangible Assets, Net (Detail) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 78,521 | $ 36,786 |
Accumulated Amortization | 13,879 | 10,923 |
Non-compete agreements [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,408 | 1,244 |
Accumulated Amortization | 397 | 978 |
Favorable leases [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 8,251 | 8,744 |
Accumulated Amortization | 4,332 | 3,807 |
Pharmacy customer prescription lists [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 6,810 | 7,168 |
Accumulated Amortization | 4,210 | 3,445 |
Customer relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 57,937 | 17,633 |
Accumulated Amortization | 4,173 | 2,187 |
Trade Names [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,068 | 1,068 |
Accumulated Amortization | 386 | 236 |
Franchise fees and other [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,047 | 929 |
Accumulated Amortization | $ 381 | $ 270 |
Goodwill and Other Intangible55
Goodwill and Other Intangible Assets - Summary of Weighted Average Amortization Periods for Amortizable Intangible Assets (Detail) | 12 Months Ended |
Dec. 30, 2017 | |
Non-compete agreements [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Life | 6 years 3 months 18 days |
Favorable leases [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Life | 16 years 4 months 24 days |
Pharmacy customer prescription lists [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Life | 7 years 6 months |
Customer relationships [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Life | 16 years 1 month 6 days |
Trade Names [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Life | 7 years |
Franchise fees and other [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Life | 9 years 3 months 18 days |
Goodwill and Other Intangible56
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization Expense for Future (Detail) $ in Thousands | Dec. 30, 2017USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2,018 | $ 5,772 |
2,019 | 5,604 |
2,020 | 5,267 |
2,021 | 4,620 |
2,022 | $ 4,362 |
Restructuring Charges and Ass57
Restructuring Charges and Asset Impairment - Schedule of Activity of Reserves for Closed Properties (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Restructuring Cost And Reserve [Line Items] | |||
Beginning balance | $ 21,932 | $ 14,448 | $ 14,068 |
Provision for severance | 624 | 919 | 395 |
Changes in estimates | 1,028 | 649 | (136) |
Lease termination adjustments | (2,600) | (2,437) | (1,745) |
Accretion expense | 526 | 675 | 592 |
Payments | (7,470) | (6,247) | (5,926) |
Ending balance | 17,892 | 21,932 | 14,448 |
Business Restructuring Reserves [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Provision for closing charges | 3,852 | 13,925 | 7,200 |
Lease and Ancillary Costs [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Beginning balance | 21,932 | 14,448 | 13,988 |
Changes in estimates | 1,191 | 689 | (56) |
Lease termination adjustments | (2,600) | (2,437) | (1,745) |
Accretion expense | 526 | 675 | 592 |
Payments | (7,012) | (5,368) | (5,531) |
Ending balance | 17,889 | 21,932 | 14,448 |
Lease and Ancillary Costs [Member] | Business Restructuring Reserves [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Provision for closing charges | 3,852 | 13,925 | 7,200 |
Severance [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Beginning balance | 80 | ||
Provision for severance | 624 | 919 | 395 |
Changes in estimates | (163) | (40) | (80) |
Payments | (458) | $ (879) | $ (395) |
Ending balance | $ 3 |
Restructuring Charges and Ass58
Restructuring Charges and Asset Impairment - Schedule of Restructuring Charges and Asset Impairment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Restructuring Cost And Reserve [Line Items] | |||
Asset impairment charges | $ 33,679 | $ 15,586 | $ 4,220 |
Loss (gain) on sales of assets related to closed facilities | 998 | (134) | (2,997) |
Provision for severance | 624 | 919 | 395 |
Other costs associated with distribution center and store closings | 1,851 | 3,692 | 1,865 |
Changes in estimates | 1,028 | 865 | (136) |
Lease termination adjustments | (2,600) | (2,737) | (1,745) |
Restructuring and asset impairment | 39,432 | 32,116 | 8,802 |
Business Restructuring Reserves [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Provision for closing charges | $ 3,852 | $ 13,925 | $ 7,200 |
Restructuring Charges and Ass59
Restructuring Charges and Asset Impairment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Restructuring Cost And Reserve [Line Items] | |||
Impairment charges | $ 33,679 | $ 15,586 | $ 4,220 |
Fair Value Measurements Nonrecurring [Member] | Significant unobservable inputs (Level 3) [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Long-lived assets | 48,600 | ||
Long-lived assets measured fair value on nonrecurring basis | 14,900 | ||
Impairment charges | $ 33,700 |
Long-Term Debt - Summary of Deb
Long-Term Debt - Summary of Debt Instruments (Detail) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
Senior secured revolving credit facility, due December 2021 | $ 707,492 | $ 359,127 |
Senior secured term loan, due December 2021 | 26,954 | |
Capital lease obligations | 42,904 | 48,255 |
Other, 2.61% - 8.75%, due 2019 - 2024 | 5,972 | 5,028 |
Total debt - Principal | 756,368 | 439,364 |
Unamortized debt issuance costs | (6,417) | (8,265) |
Total debt | 749,951 | 431,099 |
Less current portion | 9,196 | 17,424 |
Total long-term debt | $ 740,755 | $ 413,675 |
Long-Term Debt - Summary of D61
Long-Term Debt - Summary of Debt Instruments (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Senior Secured Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Notes maturity date | Dec. 20, 2021 | Dec. 20, 2021 |
Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Other debt, due date, start | 2,019 | 2,019 |
Other debt, due date, end | 2,024 | 2,024 |
Long-term Debt [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate Range | 2.61% | 2.61% |
Long-term Debt [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate Range | 8.75% | 8.75% |
Senior Secured Revolving Credit Facility | Revolving credit agreement [Member] | ||
Debt Instrument [Line Items] | ||
Notes maturity date | Dec. 20, 2021 | Dec. 20, 2021 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 4 Months Ended | 12 Months Ended | |||
Dec. 31, 2016USD ($)TierTranche | Nov. 30, 2015USD ($) | Dec. 30, 2017USD ($) | Apr. 22, 2017USD ($) | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Jan. 02, 2016USD ($) | |
Debt Instrument [Line Items] | |||||||
Debt extinguishment costs | $ 413,000 | $ 247,000 | $ 1,171,000 | ||||
Unused portion of loan commitments rate | 0.25% | ||||||
Maintenance of excess borrowing base | 10.00% | ||||||
Current borrowing available under credit facility | $ 415,800,000 | $ 132,700,000 | $ 132,700,000 | 415,800,000 | |||
Weighted average interest rate of convertible senior notes | 3.70% | 3.70% | |||||
Amended Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Number of tiers in pricing grid | Tier | 2 | ||||||
Credit Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Advance rate on real estate | 75.00% | ||||||
Credit facility increase in term loan | $ 33,000,000 | 33,000,000 | |||||
Available borrowings under credit facility | $ 1,000,000,000 | 1,000,000,000 | |||||
Number of tranches | Tranche | 3 | ||||||
Additional borrowings available under credit facility | $ 400,000,000 | 400,000,000 | |||||
Notes maturity date | Dec. 20, 2021 | ||||||
6.625% Senior Notes Due December 2016 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount of senior notes | $ 50,000,000 | ||||||
Senior notes, rate | 6.625% | ||||||
Redemption price (expressed as percentage of the principal amount) | 101.65625% | ||||||
Expected redemption premium and write-off unamortized issuance costs | $ 1,200,000 | ||||||
Tranche A [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Secured revolving credit facility | $ 668,093,000 | $ 668,093,000 | |||||
Tranche A-1 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Secured revolving credit facility | 39,399,000 | 39,399,000 | |||||
Tranche A-2 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings on senior secured term loan | $ 35,500,000 | ||||||
Repayment of senior secured term loan | 52,500,000 | ||||||
Revolving credit agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Secured revolving credit facility | 386,100,000 | 707,500,000 | 707,500,000 | 386,100,000 | |||
Revolving credit agreement [Member] | Tranche A [Member] | Credit Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Available borrowings under credit facility | 900,000,000 | 900,000,000 | |||||
Revolving credit agreement [Member] | Tranche A-1 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Available borrowings under credit facility | 40,000,000 | 40,000,000 | |||||
Revolving credit agreement [Member] | Tranche A-2 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Secured revolving credit facility | 60,000,000 | 60,000,000 | |||||
Debt extinguishment costs | 400,000 | ||||||
Letter of credit [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Unused borrowing capacity | $ 9,600,000 | $ 9,200,000 | $ 9,200,000 | $ 9,600,000 |
Long-Term Debt - Schedule of In
Long-Term Debt - Schedule of Interest Rate Terms for Two Remaining Tranches (Detail) $ in Thousands | 12 Months Ended |
Dec. 30, 2017USD ($) | |
Tranche A [Member] | |
Debt Instrument [Line Items] | |
Outstanding | $ 668,093 |
Tranche A [Member] | Minimum [Member] | LIBOR [Member] | |
Debt Instrument [Line Items] | |
LIBOR plus interest rate | 1.25% |
Tranche A [Member] | Minimum [Member] | Federal Funds Effective Swap Rate [Member] | |
Debt Instrument [Line Items] | |
LIBOR plus interest rate | 1.00% |
Tranche A [Member] | Minimum [Member] | Eurodollar [Member] | |
Debt Instrument [Line Items] | |
LIBOR plus interest rate | 1.25% |
Tranche A [Member] | Minimum [Member] | Prime Rate [Member] | |
Debt Instrument [Line Items] | |
LIBOR plus interest rate | 0.25% |
Tranche A [Member] | Maximum [Member] | LIBOR [Member] | |
Debt Instrument [Line Items] | |
LIBOR plus interest rate | 1.50% |
Tranche A [Member] | Maximum [Member] | Federal Funds Effective Swap Rate [Member] | |
Debt Instrument [Line Items] | |
LIBOR plus interest rate | 1.25% |
Tranche A [Member] | Maximum [Member] | Eurodollar [Member] | |
Debt Instrument [Line Items] | |
LIBOR plus interest rate | 1.50% |
Tranche A [Member] | Maximum [Member] | Prime Rate [Member] | |
Debt Instrument [Line Items] | |
LIBOR plus interest rate | 0.50% |
Tranche A-1 [Member] | |
Debt Instrument [Line Items] | |
Outstanding | $ 39,399 |
Tranche A-1 [Member] | Minimum [Member] | LIBOR [Member] | |
Debt Instrument [Line Items] | |
LIBOR plus interest rate | 2.50% |
Tranche A-1 [Member] | Minimum [Member] | Federal Funds Effective Swap Rate [Member] | |
Debt Instrument [Line Items] | |
LIBOR plus interest rate | 2.00% |
Tranche A-1 [Member] | Minimum [Member] | Eurodollar [Member] | |
Debt Instrument [Line Items] | |
LIBOR plus interest rate | 2.50% |
Tranche A-1 [Member] | Minimum [Member] | Prime Rate [Member] | |
Debt Instrument [Line Items] | |
LIBOR plus interest rate | 1.50% |
Tranche A-1 [Member] | Maximum [Member] | LIBOR [Member] | |
Debt Instrument [Line Items] | |
LIBOR plus interest rate | 2.75% |
Tranche A-1 [Member] | Maximum [Member] | Federal Funds Effective Swap Rate [Member] | |
Debt Instrument [Line Items] | |
LIBOR plus interest rate | 2.25% |
Tranche A-1 [Member] | Maximum [Member] | Eurodollar [Member] | |
Debt Instrument [Line Items] | |
LIBOR plus interest rate | 2.75% |
Tranche A-1 [Member] | Maximum [Member] | Prime Rate [Member] | |
Debt Instrument [Line Items] | |
LIBOR plus interest rate | 1.75% |
Long-Term Debt - Details of Lon
Long-Term Debt - Details of Long Term Debt Due (Detail) $ in Thousands | Dec. 30, 2017USD ($) |
Long Term Debt [Abstract] | |
2,018 | $ 9,196 |
2,019 | 6,969 |
2,020 | 5,195 |
2,021 | 710,494 |
2,022 | 2,846 |
Thereafter | 21,668 |
Total | $ 756,368 |
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 | Dec. 30, 2017 | Dec. 31, 2016 |
Book value of debt instruments, excluding debt financing costs: | ||
Current maturities of long-term debt and capital lease obligations | $ 9,196 | $ 17,424 |
Long-term debt and capital lease obligations | 747,172 | 421,940 |
Total debt - Principal | 756,368 | 439,364 |
Fair value of debt instruments, excluding debt financing costs | 757,966 | 440,759 |
Excess of fair value over book value | $ 1,598 | $ 1,395 |
Fair Value Measurements - Sch66
Fair Value Measurements - Schedule of Recurring Level 3 Fair Value Measurements of Contingent Consideration Include Unobservable Inputs (Detail) - Fair Value Measurements Recurring [Member] - Significant unobservable inputs (Level 3) [Member] | 12 Months Ended |
Dec. 30, 2017 | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Discount rate | 11.80% |
Minimum [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Probability of payments | 0.00% |
Projected year(s) of payments | 2,017 |
Maximum [Member] | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Probability of payments | 100.00% |
Projected year(s) of payments | 2,019 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - Caito Foods Service and Blue Ribbon Transport [Member] - USD ($) $ in Millions | Dec. 30, 2017 | Jan. 06, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value of contingent consideration, receivable | $ 18.4 | |
Fair value of contingent consideration, payable | 3.4 | $ 27.4 |
Other Assets, Net [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value of contingent consideration, net receivable | $ 15 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Loss Contingencies [Line Items] | |||
Rents Received from Subleases | $ 3.4 | $ 4.8 | $ 5.3 |
Percentage of Associates Represent By Union | 8.00% | ||
Critical and declining zone fund status | Less than 65 percent | ||
Minimum [Member] | |||
Loss Contingencies [Line Items] | |||
Projected insolvent period based on active to inactive participants ratio | 15 years | ||
Maximum [Member] | |||
Loss Contingencies [Line Items] | |||
Status or red zone plans | 65.00% | ||
Projected insolvent period based on active to inactive participants ratio | 20 years |
Commitments and Contingencies69
Commitments and Contingencies - Schedule of Unions Representing Employees and the Expiration Date for Agreements (Detail) | 12 Months Ended |
Dec. 30, 2017 | |
Lima Ohio [Member] | |
Commitments And Contingencies [Line Items] | |
Union Locals | IBT 908 |
Expiration Dates | 2019-01 |
Bellefontaine Ohio GTL Truck Lines Inc [Member] | |
Commitments And Contingencies [Line Items] | |
Union Locals | IBT 908 |
Expiration Dates | 2019-02 |
Bellefontaine Ohio General Merchandise Service Division [Member] | |
Commitments And Contingencies [Line Items] | |
Union Locals | IBT 908 |
Expiration Dates | 2019-02 |
Grand Rapids Michigan [Member] | |
Commitments And Contingencies [Line Items] | |
Union Locals | IBT 406 |
Expiration Dates | 2019-10 |
Landover Maryland [Member] | |
Commitments And Contingencies [Line Items] | |
Union Locals | IBT 639 |
Expiration Dates | 2021-02 |
Norfolk Virginia [Member] | |
Commitments And Contingencies [Line Items] | |
Union Locals | IBT 822 |
Expiration Dates | 2019-04 |
Columbus Georgia [Member] | |
Commitments And Contingencies [Line Items] | |
Union Locals | IBT 528 |
Expiration Dates | 2019-09 |
Leases - Rental Expense, Net of
Leases - Rental Expense, Net of Sublease Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Operating Leases Rent Expense [Abstract] | |||
Minimum rentals | $ 55,159 | $ 57,478 | $ 57,625 |
Contingent rent (reductions) increases | (237) | 314 | 267 |
Sublease rental income | (3,407) | (4,830) | (5,311) |
Total | $ 51,515 | $ 52,962 | $ 52,581 |
Leases - Future Lease Commitmen
Leases - Future Lease Commitments Under Operating Leases and Capital Leases (Detail) $ in Thousands | Dec. 30, 2017USD ($) |
Operating Leased Assets [Line Items] | |
Capital Leases, 2018 | $ 9,198 |
Capital Leases, 2019 | 8,756 |
Capital Leases, 2020 | 6,593 |
Capital Leases, 2021 | 4,577 |
Capital Leases, 2022 | 4,233 |
Capital Leases, Thereafter | 28,862 |
Capital Leases, Total | 62,219 |
Capital Leases, Interest | (19,315) |
Capital Leases, Present value of minimum lease obligations | 42,904 |
Capital Leases, Current maturities | 6,168 |
Capital Leases, Long-term capital lease obligations | 36,736 |
Operating Leases, 2018 | 53,878 |
Operating Leases, 2019 | 42,528 |
Operating Leases, 2020 | 34,768 |
Operating Leases, 2021 | 27,413 |
Operating Leases, 2022 | 20,247 |
Operating Leases, Thereafter | 67,821 |
Operating Leases, Total | 246,655 |
Used in Operations [Member] | |
Operating Leased Assets [Line Items] | |
Operating Leases, 2018 | 52,613 |
Operating Leases, 2019 | 41,489 |
Operating Leases, 2020 | 33,951 |
Operating Leases, 2021 | 26,719 |
Operating Leases, 2022 | 19,779 |
Operating Leases, Thereafter | 67,317 |
Operating Leases, Total | 241,868 |
Subleased to Others [Member] | |
Operating Leased Assets [Line Items] | |
Operating Leases, 2018 | 1,265 |
Operating Leases, 2019 | 1,039 |
Operating Leases, 2020 | 817 |
Operating Leases, 2021 | 694 |
Operating Leases, 2022 | 468 |
Operating Leases, Thereafter | 504 |
Operating Leases, Total | $ 4,787 |
Leases - Assets Held Under Capi
Leases - Assets Held Under Capital Leases (Detail) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Capital Leased Assets [Line Items] | ||
Assets under capital leases | $ 64,125 | $ 65,234 |
Less accumulated amortization and depreciation | 29,518 | 25,163 |
Net assets under capital leases | 34,607 | 40,071 |
Buildings and Improvements [Member] | ||
Capital Leased Assets [Line Items] | ||
Assets under capital leases | 60,398 | 61,831 |
Equipment [Member] | ||
Capital Leased Assets [Line Items] | ||
Assets under capital leases | $ 3,727 | $ 3,403 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Leases [Abstract] | |||
Amortization expense for property under capital leases | $ 4.4 | $ 5.2 | $ 3.6 |
Leases - Property and Equipment
Leases - Property and Equipment Owned Assets Leased to Others (Detail) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Capital Leased Assets [Line Items] | ||
Property and equipment, owned assets, leased | $ 30,751 | $ 17,808 |
Less accumulated amortization and depreciation | 8,123 | 7,625 |
Net property | 22,628 | 10,183 |
Land and improvements [Member] | ||
Capital Leased Assets [Line Items] | ||
Property and equipment, owned assets, leased | 6,515 | 3,860 |
Building [Member] | ||
Capital Leased Assets [Line Items] | ||
Property and equipment, owned assets, leased | $ 24,236 | $ 13,948 |
Leases - Future Minimum Rentals
Leases - Future Minimum Rentals to be Received Under Lease Obligations (Detail) $ in Thousands | Dec. 30, 2017USD ($) |
Schedule of Leases Future Minimum Payments Receivable [Line Items] | |
Operating Lease, 2018 | $ 6,902 |
Operating Lease, 2019 | 6,312 |
Operating Lease, 2020 | 5,657 |
Operating Lease, 2021 | 4,904 |
Operating Lease, 2022 | 3,869 |
Operating Lease, Thereafter | 20,499 |
Operating Lease, Total | 48,143 |
Owned Property [Member] | |
Schedule of Leases Future Minimum Payments Receivable [Line Items] | |
Operating Lease, 2018 | 4,194 |
Operating Lease, 2019 | 4,044 |
Operating Lease, 2020 | 3,635 |
Operating Lease, 2021 | 3,359 |
Operating Lease, 2022 | 2,973 |
Operating Lease, Thereafter | 16,768 |
Operating Lease, Total | 34,973 |
Leased Property [Member] | |
Schedule of Leases Future Minimum Payments Receivable [Line Items] | |
Operating Lease, 2018 | 2,708 |
Operating Lease, 2019 | 2,268 |
Operating Lease, 2020 | 2,022 |
Operating Lease, 2021 | 1,545 |
Operating Lease, 2022 | 896 |
Operating Lease, Thereafter | 3,731 |
Operating Lease, Total | $ 13,170 |
Associate Retirement Plans - Ad
Associate Retirement Plans - Additional Information (Detail) | 12 Months Ended | ||
Dec. 30, 2017USD ($)Trust | Dec. 31, 2016USD ($) | Jan. 02, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plans expense | $ 7,900,000 | $ 11,900,000 | $ 21,100,000 |
Cash surrender value of plan assets included in other long term assets | 138,193,000 | 94,242,000 | |
Aggregate amount of life insurance coverage | $ 15,000,000 | ||
Number of Trusts | Trust | 2 | ||
Percentage of trust funded with pre-merger liability to plan participants | 125.00% | ||
Proceeds from company owned life insurance | 5,004,000 | ||
Distribution charges | $ 2,600,000 | 2,800,000 | |
Settlement accounting charges | $ 500,000 | 700,000 | |
Defined contribution plan employees minimum period of service | 10 years | ||
Defined contribution plan employees age to eligible under the plan | 55 years | ||
Maximum age of major medical insurance with deductible and coinsurance provisions | 65 years | ||
Multiplier effect of Monthly postretirement health care benefits to covered employees | $ 5 | ||
Actuarial gains and losses are amortized when accumulation of such gains and losses exceeds | 10.00% | ||
Percentage point increase or decrease in assumed health care cost trend rate | 1.00% | ||
Critical and declining zone fund status | Less than 65 percent | ||
Michigan Conference of Teamsters and Ohio Conference of Teamsters Health and Welfare Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension contributions during last plan year | $ 14,100,000 | 14,300,000 | 15,100,000 |
Central States, Southeast and Southwest Areas Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension contributions during last plan year | $ 13,400,000 | 13,400,000 | $ 12,900,000 |
Collective bargaining arrangement description | The Company is party to four CBAs that require contributions to the Plan with expiration dates ranging from January 2019 to February 2021. These CBAs cover warehouse personnel and drivers in Grand Rapids, Michigan and Bellefontaine and Lima, Ohio. | ||
Cash Balance Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Average long-term expected return on pension plan assets | 4.84% | ||
Expected Company contribution in 2018 | $ 2,000,000 | ||
Retiree Medical Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected Company contribution in 2018 | 400,000 | ||
Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
1% increase or decrease in assumed health care cost trend rate in accumulated postretirement benefit obligation | $ 100,000 | ||
Status or critical and declining zone plans | 65.00% | ||
Projected insolvent period based on active to inactive participants ratio. | 20 years | ||
Maximum [Member] | Central States, Southeast and Southwest Areas Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expiration dates of collective bargaining arrangements | Feb. 28, 2021 | ||
Percentage representing contribution funded to plan total contribution | 5.00% | ||
Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected insolvent period based on active to inactive participants ratio. | 15 years | ||
Minimum [Member] | Central States, Southeast and Southwest Areas Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expiration dates of collective bargaining arrangements | Jan. 31, 2019 | ||
Cash Surrender Value [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash surrender value of plan assets included in other long term assets | $ 4,300,000 | $ 4,200,000 |
Associate Retirement Plans - Sc
Associate Retirement Plans - Schedule of Benefit Obligations, Pension & Postretirement Benefit Plans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Fair value of plan assets: | |||
Balance at beginning of year | $ 81,982 | ||
Balance at end of year | 81,255 | $ 81,982 | |
Components of net amount recognized in financial position: | |||
Noncurrent liabilities | (15,687) | (16,266) | |
Pension Plan [Member] | |||
Projected/Accumulated benefit obligation: | |||
Balance at beginning of year | 80,350 | 83,398 | |
Interest cost | 2,345 | 2,977 | $ 3,325 |
Actuarial loss | 4,662 | 1,598 | |
Benefits paid | (7,204) | (7,623) | |
Balance at end of year | 80,153 | 80,350 | 83,398 |
Fair value of plan assets: | |||
Balance at beginning of year | 81,982 | 84,753 | |
Actual return on plan assets | 6,477 | 4,852 | |
Benefits paid | (7,204) | (7,623) | |
Balance at end of year | 81,255 | 81,982 | 84,753 |
Funded (unfunded) status | 1,102 | 1,632 | |
Components of net amount recognized in financial position: | |||
Noncurrent assets | 1,102 | 1,632 | |
Net asset (liability) | 1,102 | 1,632 | |
Amounts recognized in AOCI: | |||
Net actuarial loss | 18,205 | 16,938 | |
Accumulated other comprehensive loss | $ 18,205 | $ 16,938 | |
Weighted average assumptions at measurement date: | |||
Discount rate | 3.45% | 3.82% | |
Retiree Medical Plan [Member] | |||
Projected/Accumulated benefit obligation: | |||
Balance at beginning of year | $ 9,663 | $ 9,179 | |
Service cost | 184 | 187 | 231 |
Interest cost | 345 | 345 | 404 |
Actuarial loss | 303 | 213 | |
Benefits paid | (296) | (261) | |
Balance at end of year | 10,199 | 9,663 | $ 9,179 |
Fair value of plan assets: | |||
Company contributions | 296 | 261 | |
Benefits paid | (296) | (261) | |
Funded (unfunded) status | (10,199) | (9,663) | |
Components of net amount recognized in financial position: | |||
Current liabilities | (417) | (412) | |
Noncurrent liabilities | (9,782) | (9,251) | |
Net asset (liability) | (10,199) | (9,663) | |
Amounts recognized in AOCI: | |||
Net actuarial loss | 1,678 | 1,434 | |
Prior service credit | (250) | (408) | |
Accumulated other comprehensive loss | $ 1,428 | $ 1,026 | |
Weighted average assumptions at measurement date: | |||
Discount rate | 3.72% | 4.26% | |
Ultimate health care cost trend rate | 5.00% | 5.00% |
Associate Retirement Plans - Co
Associate Retirement Plans - Components of Net Periodic Pension and Postretirement Benefit Cost (Income) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | $ 2,345 | $ 2,977 | $ 3,325 |
Expected return on plan assets | (3,836) | (4,269) | (4,923) |
Recognized actuarial net loss | 221 | 706 | 827 |
Net periodic benefit (income) expense | (1,270) | (586) | (771) |
Settlement expense | 548 | 692 | |
Total (income) expense | $ (722) | $ 106 | $ (771) |
Weighted average assumptions at measurement date: | |||
Discount rate | 3.82% | 4.04% | 3.75% |
Expected return on plan assets | 4.83% | 5.05% | 5.50% |
Retiree Medical Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 184 | $ 187 | $ 231 |
Interest cost | 345 | 345 | 404 |
Amortization of prior service cost | (158) | (158) | (158) |
Recognized actuarial net loss | 59 | 42 | 174 |
Net periodic benefit (income) expense | 430 | 416 | 651 |
Total (income) expense | $ 430 | $ 416 | $ 651 |
Weighted average assumptions at measurement date: | |||
Discount rate | 4.26% | 4.55% | 4.15% |
Associate Retirement Plans - 79
Associate Retirement Plans - Schedule of Amounts Recognized in AOCI (Detail) $ in Thousands | Dec. 30, 2017USD ($) |
Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss | $ 417 |
Retiree Medical Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service credit | (158) |
Net actuarial loss | $ 88 |
Associate Retirement Plans - As
Associate Retirement Plans - Assumed Current Healthcare Cost Trend Rates Used to Determine Net Periodic Benefit Cost (Income) (Detail) | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Defined Benefit Plan Assumed Health Care Cost Trend Rates [Abstract] | |||
Pre65 | 7.50% | 7.75% | |
Post65 | 8.40% | 8.40% | 6.85% |
Associate Retirement Plans - Su
Associate Retirement Plans - Summary of Actual Assets Allocation (Detail) | Dec. 30, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 100.00% | |
Actual allocation | 100.00% | 100.00% |
Equity securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 20.00% | |
Actual allocation | 19.30% | 20.80% |
Fixed income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 80.00% | |
Actual allocation | 79.40% | 76.90% |
Cash equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 1.30% | 2.30% |
Associate Retirement Plans - 82
Associate Retirement Plans - Summary of Fair Value Pension Plan Asset (Detail) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value | $ 81,255 | $ 81,982 | |
Total net asset value | 66,327 | 64,684 | |
Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value | 1,037 | 1,872 | |
Significant unobservable inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value | 13,891 | 15,426 | |
Mutual funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value | 18,194 | 14,178 | |
Total net asset value | 18,194 | 14,178 | |
Pooled funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value | 48,133 | 50,506 | |
Total net asset value | 48,133 | 50,506 | |
Money market fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value | 1,037 | 1,872 | |
Money market fund [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value | 1,037 | 1,872 | |
Guaranteed annuity contract [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value | 13,891 | 15,426 | |
Guaranteed annuity contract [Member] | Significant unobservable inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value | $ 13,891 | $ 15,426 | $ 16,198 |
Associate Retirement Plans - 83
Associate Retirement Plans - Summary of Reconciliation of Beginning and Ending Balances for Level 3 Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Balance at beginning of year | $ 81,982 | |
Balance at end of year | 81,255 | $ 81,982 |
Guaranteed annuity contract [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Balance at beginning of year | 15,426 | |
Balance at end of year | 13,891 | 15,426 |
Significant unobservable inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Balance at beginning of year | 15,426 | |
Balance at end of year | 13,891 | 15,426 |
Significant unobservable inputs (Level 3) [Member] | Guaranteed annuity contract [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Balance at beginning of year | 15,426 | 16,198 |
Purchases, sales, issuances and settlements, net | (2,222) | (1,733) |
Interest income | 552 | 631 |
Unrealized gains | 135 | 330 |
Balance at end of year | $ 13,891 | $ 15,426 |
Associate Retirement Plans - Es
Associate Retirement Plans - Estimated Benefit Payments Expected to be Paid (Detail) $ in Thousands | Dec. 30, 2017USD ($) |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 8,668 |
2,019 | 8,274 |
2,020 | 7,702 |
2,021 | 7,843 |
2,022 | 7,035 |
2022 to 2026 | 26,850 |
Post-retirement medical benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 417 |
2,019 | 463 |
2,020 | 503 |
2,021 | 540 |
2,022 | 575 |
2022 to 2026 | $ 3,232 |
Accumulated Other Comprehensi85
Accumulated Other Comprehensive Income or Loss - Schedule Of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance, value | $ 825,407 | $ 790,779 | $ 747,253 |
Other comprehensive loss before reclassifications | (2,448) | (643) | (455) |
Income tax benefit | 934 | 236 | 114 |
Other comprehensive loss, net of tax, before reclassifications | (1,514) | (407) | (341) |
Amortization of amounts included in net periodic benefit cost | 799 | 657 | 884 |
Income tax expense | (302) | (240) | (335) |
Amounts reclassified out of AOCI, net of tax | 497 | 417 | 549 |
Other comprehensive (loss) income, net of tax | (1,017) | 10 | 208 |
Reclassification of stranded tax effects | (2,682) | ||
Balance, value | 721,950 | 825,407 | 790,779 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance, value | (11,437) | (11,447) | (11,655) |
Other comprehensive (loss) income, net of tax | (1,017) | 10 | 208 |
Reclassification of stranded tax effects | (2,682) | ||
Balance, value | $ (15,136) | $ (11,437) | $ (11,447) |
Income Tax - Summary of Income
Income Tax - Summary of Income Tax Provision for Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Current income tax expense: | |||
Federal | $ 366 | $ 22,936 | $ 31,437 |
State | 528 | 3,210 | 3,144 |
Total current income tax expense | 894 | 26,146 | 34,581 |
Deferred income tax (benefit) expense: | |||
Federal | (72,842) | 6,509 | 3,255 |
State | (7,079) | 252 | (743) |
Total deferred income tax (benefit) expense | (79,921) | 6,761 | 2,512 |
Total income tax (benefit) expense | $ (79,027) | $ 32,907 | $ 37,093 |
Income Tax - Reconciliation of
Income Tax - Reconciliation of Statutory Federal Rate to Effective Rate (Detail) | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract] | |||
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
Federal rate change effect on deferred taxes | 19.70% | ||
State taxes, net of federal income tax benefit | 3.10% | 2.50% | 1.60% |
Stock compensation | 1.00% | ||
Other, net | 0.80% | (0.60%) | 0.50% |
Charitable product donations | 0.40% | (0.50%) | (0.30%) |
Tax credits | 0.20% | ||
Domestic production activities deduction | 0.10% | (0.30%) | (0.20%) |
Non-deductible expenses | (0.30%) | 0.50% | 0.40% |
Effective income tax rate | 60.00% | 36.60% | 37.00% |
Income Tax - Additional Informa
Income Tax - Additional Information (Detail) - USD ($) $ in Millions | Dec. 29, 2018 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 |
Income Tax Expense Benefit Continuing Operations [Line Items] | |||||
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% | ||
Discrete income tax benefit due to tax act impact | $ 26 | ||||
Effective rate | 60.00% | 36.60% | 37.00% | ||
Uncertain tax positions included in unrecognized tax benefits | $ 1.4 | ||||
Forecast [Member] | |||||
Income Tax Expense Benefit Continuing Operations [Line Items] | |||||
Federal statutory income tax rate | 21.00% | ||||
Impact of unrecognized tax benefits settlement on effective tax rate | $ 2 | ||||
Forecast [Member] | Minimum [Member] | |||||
Income Tax Expense Benefit Continuing Operations [Line Items] | |||||
Effective rate | 23.00% | ||||
Forecast [Member] | Maximum [Member] | |||||
Income Tax Expense Benefit Continuing Operations [Line Items] | |||||
Effective rate | 24.00% |
Income Tax - Summary of Deferre
Income Tax - Summary of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Employee benefits | $ 19,311 | $ 30,626 |
Accrued workers' compensation | 1,620 | 2,624 |
Allowance for doubtful accounts | 1,974 | 2,945 |
Intangible assets | 56 | 2,060 |
Restructuring | 2,322 | 6,087 |
Deferred revenue | 1,552 | 2,990 |
Accrued rent | 3,853 | 3,555 |
Accrued insurance | 921 | 1,279 |
All other | 2,725 | 4,417 |
Total deferred tax assets | 34,334 | 56,583 |
Deferred tax liabilities: | ||
Property and equipment | 34,199 | 52,401 |
Inventory | 31,454 | 46,332 |
Goodwill | 10,083 | 79,904 |
All other | 648 | 1,189 |
Total deferred tax liabilities | 76,384 | 179,826 |
Net deferred tax liability | $ 42,050 | $ 123,243 |
Income Tax - Reconciliation o90
Income Tax - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Reconciliation Of Unrecognized Tax Benefits Excluding Amounts Pertaining To Examined Tax Returns Roll Forward | ||
Balance at beginning of year | $ 2,369 | $ 2,211 |
Gross increases - tax positions taken in prior years | 213 | 184 |
Gross decreases - tax positions taken in prior years | (123) | (2) |
Gross increases - tax positions taken in current year | 872 | 718 |
Lapse of statute of limitations | (923) | (742) |
Balance at end of year | $ 2,408 | $ 2,369 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum Contractual term | 1 year 25 days | 1 year 7 months 24 days | 2 years 5 months 15 days | 3 years 3 months 18 days |
Shares available for Grant under the Plan | 2,500,000 | |||
Shares unissued | 14,726 | |||
Proceeds from exercise of stock options | $ 3,207 | $ 2,518 | $ 3,661 | |
Fair value of share vested | 9,300 | 6,600 | 7,600 | |
Tax deductions related to the exercise of stock option and vesting of restricted stock | $ 11,600 | $ 8,000 | $ 9,500 | |
Stock purchase plan | 300,000 | |||
Granted additional shares of common stock, percentage | 20.00% | |||
Share based payment share restriction period | 24 months | |||
Purchase price of common stock | 95.00% | |||
Restricted Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option award period | 4 years | |||
Unrecognized compensation cost | $ 4,000 | |||
Unrecognized compensation cost, weighted average period of recognition | 2 years 3 months 18 days | |||
Restricted Stock Awards [Member] | Board of Directors Chairman [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option award period | 1 year | |||
2015 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum Contractual term | 10 years | |||
Shares unissued | 1,947,030 | |||
Associate Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock purchase plan | 200,000 | |||
Shares issued under associate stock purchase plan | 81,511 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Shares Under Options, Outstanding, Beginning balance | 200,517 | 308,793 | 494,483 | |
Shares Under Options, Exercisable | 200,517 | 308,793 | 494,483 | |
Shares Under Options, Exercised | (152,589) | (107,338) | (185,627) | |
Shares Under Options, Cancelled/Forfeited | (938) | (63) | ||
Shares Under Options, Outstanding, Ending balance | 47,928 | 200,517 | 308,793 | 494,483 |
Shares Under Options, Exercisable | 47,928 | 200,517 | 308,793 | 494,483 |
Weighted Average Exercise Price, Options outstanding, Beginning balance | $ 19.94 | $ 21.15 | $ 20.61 | |
Weighted Average Exercise Price, Exercisable | 19.94 | 21.15 | 20.61 | |
Weighted Average Exercise Price, Exercised | 21.02 | 23.46 | 19.72 | |
Weighted Average Exercise Price, Cancelled/Forfeited | 14.36 | 11.50 | ||
Weighted Average Exercise Price, Options outstanding, Ending balance | 16.52 | 19.94 | 21.15 | $ 20.61 |
Weighted Average Exercise Price, Exercisable | $ 16.52 | $ 19.94 | $ 21.15 | $ 20.61 |
Weighted Average Remaining Contractual Life Years, Options outstanding | 1 year 25 days | 1 year 7 months 24 days | 2 years 5 months 15 days | 3 years 3 months 18 days |
Weighted Average Remaining Contractual Life Years, Exercisable | 1 year 25 days | 1 year 7 months 24 days | 2 years 5 months 15 days | 3 years 3 months 18 days |
Aggregate Intrinsic Value, Options outstanding, Beginning balance | $ 3,929 | $ 773 | $ 2,772 | |
Aggregate Intrinsic Value, Exercisable | 3,929 | 773 | 2,772 | |
Aggregate Intrinsic Value, Exercised | 1,832 | 1,043 | 1,543 | |
Aggregate Intrinsic Value, Options outstanding, Ending balance | 487 | 3,929 | 773 | $ 2,772 |
Aggregate Intrinsic Value, Exercisable | $ 487 | $ 3,929 | $ 773 | $ 2,772 |
Stock-Based Compensation - Su93
Stock-Based Compensation - Summary of Restricted Stock Activity (Detail) - Restricted Stock Awards [Member] - $ / shares | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Outstanding and nonvested, Beginning balance | 660,143 | 637,555 | 600,653 |
Shares, Granted | 296,297 | 314,944 | 314,595 |
Shares, Vested | (258,183) | (255,156) | (265,737) |
Shares, Forfeited | (84,513) | (37,200) | (11,956) |
Shares Outstanding and nonvested, Ending balance | 613,744 | 660,143 | 637,555 |
Weighted Average Grant-Date Fair Value, Outstanding and nonvested, Beginning balance | $ 26.48 | $ 24.75 | $ 23.08 |
Weighted Average Grant-Date Fair Value, Granted | 34.68 | 28.34 | 26.59 |
Weighted Average Grant-Date Fair Value, Vested | 25.90 | 24.56 | 23.19 |
Weighted Average Grant-Date Fair Value, Forfeited | 29.11 | 25.80 | 23.85 |
Weighted Average Grant-Date Fair Value, Outstanding and nonvested, ending balance | $ 30.32 | $ 26.48 | $ 24.75 |
Stock-Based Compensation - Su94
Stock-Based Compensation - Summary of Allocation of Stock-Based Compensation Expense in Condensed Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Employee Service Share Based Compensation Aggregate Disclosures [Abstract] | |||
Restricted stock | $ 9,611 | $ 7,936 | $ 7,240 |
Tax benefits | (3,440) | (2,976) | (2,758) |
Stock-based compensation expense, net of tax | $ 6,171 | $ 4,960 | $ 4,482 |
Concentration of Credit Risk -
Concentration of Credit Risk - Additional Information (Detail) | 12 Months Ended |
Dec. 30, 2017USD ($)Retailer | |
Concentration Of Credit Risk [Line Items] | |
Number of independent retailer for unearned advanced amount | Retailer | 1 |
Reserve established for unearned portion of funds advanced | $ 4,900,000 |
Percent of unearned advanced amount to total assets | 2.00% |
Present value of potential obligation for sub-lease | $ 6,400,000 |
Assigned sublease obligation | 13,800,000 |
Bank debt guaranteed | 1,500,000 |
Payments required under guarantee | 0 |
Loss incurred under guarantee | $ 0 |
Minimum [Member] | |
Concentration Of Credit Risk [Line Items] | |
Loan repayable period | 5 years |
Estimated loss contingency, in excess of amount currently reserved | $ 0 |
Maximum [Member] | |
Concentration Of Credit Risk [Line Items] | |
Loan repayable period | 10 years |
Estimated loss contingency, in excess of amount currently reserved | $ 25,000,000 |
Supplemental Cash Flow Inform96
Supplemental Cash Flow Information - Schedule of Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Non-cash financing activities: | |||
Issuance of note payable as consideration for acquisition | $ 2,460 | $ 2,000 | |
Recognition of investment in direct financing lease | 2,295 | ||
Recognition of capital lease obligations | 588 | $ 3,536 | 3,236 |
Derecognition of capital lease obligations | (6,068) | ||
Deferred gain on derecognition of capital lease obligations | 3,052 | ||
Non-cash investing activities: | |||
Capital expenditures included in accounts payable | 5,418 | 5,465 | 8,896 |
Derecognition of fixed assets under direct financing lease | 2,295 | ||
Capital lease asset additions | 588 | 3,536 | 3,236 |
Capital lease asset disposals | (3,016) | ||
Acquisition financed through issuance of note payable | 2,460 | 2,000 | |
Receipt of notes receivable on sale of assets | 4,531 | ||
Other supplemental cash flow information: | |||
Cash paid for interest | 22,818 | 16,184 | 19,178 |
Cash paid for income taxes | $ 10,657 | $ 35,836 | $ 23,531 |
Reporting Segment Information -
Reporting Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 30, 2017SegmentDistribution_CentersSupermarketsPharmacyServicesFuel_Center | |
Segment Reporting Information [Line Items] | |
Number of Reportable Segment | Segment | 3 |
Number of distribution centers | 13 |
Number of military distribution centers | 7 |
Number of corporate-owned retail stores | Supermarkets | 145 |
Number of retail stores offered pharmacy services | PharmacyServices | 87 |
Number of fuel centers operated | Fuel_Center | 31 |
Food Distribution [Member] | |
Segment Reporting Information [Line Items] | |
Number of military distribution centers | 2 |
Reporting Segment Information98
Reporting Segment Information - Schedule of Segment Reporting Information, by Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Dec. 30, 2017 | Oct. 07, 2017 | Jul. 15, 2017 | Dec. 31, 2016 | Oct. 08, 2016 | Jul. 16, 2016 | Apr. 22, 2017 | Apr. 23, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 1,924,225 | $ 1,906,644 | $ 1,894,709 | $ 1,828,183 | $ 1,800,085 | $ 1,827,562 | $ 2,402,504 | $ 2,278,770 | $ 8,128,082 | $ 7,734,600 | $ 7,651,973 |
Merger/acquisition and integration | 1,070 | 2,392 | 622 | 2,722 | 2,427 | 913 | 4,017 | 897 | 8,101 | 6,959 | 8,433 |
Goodwill impairment | 189,027 | 189,027 | |||||||||
Restructuring charges (gains) and asset impairment | 2,799 | 35,626 | $ (14) | 8,402 | $ 2,662 | $ 5,748 | $ 1,021 | $ 15,304 | 39,432 | 32,116 | 8,802 |
Depreciation and amortization | 83,240 | 77,246 | 83,334 | ||||||||
Operating earnings (loss) | (106,316) | 108,767 | 122,875 | ||||||||
Capital expenditures | 70,906 | 73,429 | 79,394 | ||||||||
Total Assets | 2,055,797 | 1,930,336 | 2,055,797 | 1,930,336 | |||||||
Discontinued Operations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Assets | 3,446 | 3,249 | 3,446 | 3,249 | |||||||
Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 8,128,082 | 7,734,600 | 7,651,973 | ||||||||
Intersegment Eliminations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | (885,872) | (918,095) | (973,512) | ||||||||
Food Distribution [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Merger/acquisition and integration | 6,244 | 3,703 | 2,037 | ||||||||
Restructuring charges (gains) and asset impairment | 1,317 | 5,068 | (216) | ||||||||
Depreciation and amortization | 30,255 | 21,397 | 26,127 | ||||||||
Operating earnings (loss) | 83,296 | 85,093 | 78,841 | ||||||||
Capital expenditures | 25,990 | 19,075 | 17,967 | ||||||||
Total Assets | 1,085,621 | 776,725 | 1,085,621 | 776,725 | |||||||
Food Distribution [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 3,992,192 | 3,454,541 | 3,305,094 | ||||||||
Food Distribution [Member] | Intersegment Eliminations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | (885,872) | (918,095) | (973,512) | ||||||||
Military [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Merger/acquisition and integration | 1,522 | 1 | |||||||||
Restructuring charges (gains) and asset impairment | 500 | (473) | 1,048 | ||||||||
Depreciation and amortization | 11,626 | 11,484 | 12,081 | ||||||||
Operating earnings (loss) | 7,014 | 12,160 | 17,059 | ||||||||
Capital expenditures | 6,482 | 6,447 | 3,768 | ||||||||
Total Assets | 432,818 | 395,737 | 432,818 | 395,737 | |||||||
Military [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 2,144,022 | 2,197,014 | 2,207,161 | ||||||||
Retail [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Merger/acquisition and integration | 335 | 3,255 | 6,396 | ||||||||
Goodwill impairment | $ 189,000 | 189,027 | |||||||||
Restructuring charges (gains) and asset impairment | 37,615 | 27,521 | 7,970 | ||||||||
Depreciation and amortization | 41,359 | 44,365 | 45,126 | ||||||||
Operating earnings (loss) | (196,626) | 11,514 | 26,975 | ||||||||
Capital expenditures | 38,434 | 47,907 | 57,659 | ||||||||
Total Assets | $ 533,912 | $ 754,625 | 533,912 | 754,625 | |||||||
Retail [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 1,991,868 | $ 2,083,045 | $ 2,139,718 |
Reporting Segment Information99
Reporting Segment Information - Summary of Sales by Type of Similar Products and Services (Detail) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Dec. 30, 2017 | Oct. 07, 2017 | Jul. 15, 2017 | Dec. 31, 2016 | Oct. 08, 2016 | Jul. 16, 2016 | Apr. 22, 2017 | Apr. 23, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Revenue from External Customer [Line Items] | |||||||||||
Consolidated net sales | $ 1,924,225 | $ 1,906,644 | $ 1,894,709 | $ 1,828,183 | $ 1,800,085 | $ 1,827,562 | $ 2,402,504 | $ 2,278,770 | $ 8,128,082 | $ 7,734,600 | $ 7,651,973 |
Sales Revenue [Member] | Product Concentration Risk [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Consolidated net sales, Percentage | 100.00% | 100.00% | 100.00% | ||||||||
Fuel [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Consolidated net sales | $ 126,674 | $ 110,619 | $ 122,004 | ||||||||
Fuel [Member] | Sales Revenue [Member] | Product Concentration Risk [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Consolidated net sales, Percentage | 1.60% | 1.40% | 1.60% | ||||||||
Center Store [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Consolidated net sales | $ 4,877,289 | $ 4,908,142 | $ 4,845,763 | ||||||||
Center Store [Member] | Sales Revenue [Member] | Product Concentration Risk [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Consolidated net sales, Percentage | 60.00% | 63.50% | 63.30% | ||||||||
Fresh [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Consolidated net sales | $ 2,771,942 | $ 2,359,829 | $ 2,373,829 | ||||||||
Fresh [Member] | Sales Revenue [Member] | Product Concentration Risk [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Consolidated net sales, Percentage | 34.10% | 30.50% | 31.00% | ||||||||
Pharmacy [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Consolidated net sales | $ 352,177 | $ 356,010 | $ 310,377 | ||||||||
Pharmacy [Member] | Sales Revenue [Member] | Product Concentration Risk [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Consolidated net sales, Percentage | 4.30% | 4.60% | 4.10% |
Quarterly Financial Informat100
Quarterly Financial Information (unaudited) - Schedule of Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Dec. 30, 2017 | Oct. 07, 2017 | Jul. 15, 2017 | Dec. 31, 2016 | Oct. 08, 2016 | Jul. 16, 2016 | Apr. 22, 2017 | Apr. 23, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 1,924,225 | $ 1,906,644 | $ 1,894,709 | $ 1,828,183 | $ 1,800,085 | $ 1,827,562 | $ 2,402,504 | $ 2,278,770 | $ 8,128,082 | $ 7,734,600 | $ 7,651,973 |
Gross profit | 254,815 | 261,692 | 271,026 | 259,258 | 255,295 | 262,699 | 357,376 | 334,242 | 1,144,909 | 1,111,494 | 1,115,682 |
Merger/acquisition and integration | 1,070 | 2,392 | 622 | 2,722 | 2,427 | 913 | 4,017 | 897 | 8,101 | 6,959 | 8,433 |
Goodwill impairment | 189,027 | 189,027 | |||||||||
Restructuring charges (gains) and asset impairment | 2,799 | 35,626 | (14) | 8,402 | 2,662 | 5,748 | 1,021 | 15,304 | 39,432 | 32,116 | 8,802 |
(Loss) earnings before income taxes and discontinued operations | 12,492 | (199,897) | 33,327 | 20,079 | 25,594 | 28,303 | 22,434 | 15,987 | (131,644) | 89,963 | |
(Loss) earnings from continuing operations | 34,710 | (123,452) | 21,060 | 12,806 | 16,730 | 17,560 | 15,065 | 9,960 | (52,617) | 57,056 | 63,166 |
(Loss) earnings from discontinued operations, net of taxes | (103) | (54) | (31) | 39 | (82) | (76) | (40) | (109) | (228) | (228) | (456) |
Net (loss) earnings | $ 34,607 | $ (123,506) | $ 21,029 | $ 12,845 | $ 16,648 | $ 17,484 | $ 15,025 | $ 9,851 | $ (52,845) | $ 56,828 | $ 62,710 |
(Loss) earnings from continuing operations per share: | |||||||||||
Basic (loss) earnings per share from continuing operations | $ 0.94 | $ (3.31) | $ 0.56 | $ 0.34 | $ 0.45 | $ 0.47 | $ 0.40 | $ 0.27 | $ (1.41) | $ 1.52 | $ 1.68 |
Diluted (loss) earnings per share from continuing operations | 0.94 | (3.31) | 0.56 | 0.34 | 0.45 | 0.47 | 0.40 | 0.27 | (1.41) | 1.52 | 1.67 |
Net (loss) earnings per share: | |||||||||||
Basic | 0.94 | (3.32) | 0.56 | 0.34 | 0.44 | 0.47 | 0.40 | 0.26 | (1.41) | 1.52 | 1.67 |
Diluted | $ 0.94 | $ (3.32) | $ 0.56 | $ 0.34 | $ 0.44 | $ 0.47 | $ 0.40 | $ 0.26 | $ (1.41) | $ 1.51 | $ 1.66 |
Dividends | $ 6,055 | $ 6,149 | $ 6,245 | $ 5,623 | $ 5,620 | $ 5,621 | $ 6,255 | $ 5,632 | $ 24,704 | $ 22,496 | $ 20,299 |