Cover Page
Cover Page - shares | 3 Months Ended | |
Apr. 03, 2021 | Apr. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 3, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-32383 | |
Entity Registrant Name | BlueLinx Holdings Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 77-0627356 | |
Entity Address, Address Line One | 1950 Spectrum Circle, Suite 300 | |
Entity Address, City or Town | Marietta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30067 | |
City Area Code | 770 | |
Local Phone Number | 953-7000 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | BXC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 9,468,042 | |
Entity Central Index Key | 0001301787 | |
Current Fiscal Year Date | --01-02 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Income Statement [Abstract] | ||
Net sales | $ 1,025,469 | $ 662,070 |
Cost of sales | 845,077 | 568,861 |
Gross profit | 180,392 | 93,209 |
Operating expenses: | ||
Selling, general, and administrative | 75,560 | 74,588 |
Depreciation and amortization | 7,465 | 7,635 |
Amortization of deferred gains on real estate | (984) | (984) |
Gains from sales of property | (1,287) | (525) |
Other operating expenses | 112 | 4,165 |
Total operating expenses | 80,866 | 84,879 |
Operating income | 99,526 | 8,330 |
Non-operating expenses (income): | ||
Interest expense, net | 16,234 | 14,380 |
Other income, net | (314) | (237) |
Income (loss) before provision for (benefit from) income taxes | 83,606 | (5,813) |
Provision for (benefit from) income taxes | 21,746 | (5,026) |
Net income (loss) | $ 61,860 | $ (787) |
Basic income (loss) (in dollars per share) | $ 6.53 | $ (0.08) |
Diluted income (loss) (in dollars per share) | $ 6.28 | $ (0.08) |
Comprehensive income (loss): | ||
Net income (loss) | $ 61,860 | $ (787) |
Other comprehensive income (loss): | ||
Amortization of unrecognized pension gain, net of tax | 239 | 196 |
Other | 11 | (16) |
Total other comprehensive income | 250 | 180 |
Comprehensive income (loss) | $ 62,110 | $ (607) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 03, 2021 | Jan. 02, 2021 |
Current assets: | ||
Cash | $ 179 | $ 82 |
Receivables, less allowances of $5,573 and $4,123, respectively | 418,815 | 293,643 |
Inventories, net | 376,423 | 342,108 |
Other current assets | 33,029 | 32,581 |
Total current assets | 828,446 | 668,414 |
Property and equipment, at cost | 310,101 | 299,935 |
Accumulated depreciation | (125,769) | (121,223) |
Property and equipment, net | 184,332 | 178,712 |
Operating lease right-of-use assets | 48,969 | 51,142 |
Goodwill | 47,772 | 47,772 |
Intangible assets, net | 17,067 | 18,889 |
Deferred tax assets | 66,795 | 62,899 |
Other non-current assets | 19,099 | 20,302 |
Total assets | 1,212,480 | 1,048,130 |
Current liabilities: | ||
Accounts payable | 218,975 | 165,163 |
Accrued compensation | 10,798 | 24,751 |
Taxes payable | 33,646 | 7,847 |
Current maturities of long-term debt, net of debt issuance costs of $0 and $74, respectively | 0 | 1,171 |
Finance lease liabilities - short-term | 7,459 | 5,675 |
Operating lease liabilities - short-term | 5,123 | 6,076 |
Real estate deferred gains - short-term | 4,040 | 4,040 |
Other current liabilities | 11,747 | 14,309 |
Total current liabilities | 291,788 | 229,032 |
Non-current liabilities: | ||
Long-term debt, net of debt issuance costs of $2,615 and $8,936, respectively | 355,899 | 321,270 |
Finance lease liabilities - long-term | 273,815 | 267,443 |
Operating lease liabilities - long-term | 44,021 | 44,965 |
Real estate deferred gains - long-term | 77,059 | 78,009 |
Pension benefit obligation | 21,730 | 22,684 |
Other non-current liabilities | 25,655 | 25,635 |
Total liabilities | 1,089,967 | 989,038 |
Commitments and Contingencies | ||
STOCKHOLDERS’ EQUITY: | ||
Common Stock, $0.01 par value, 20,000,000 shares authorized, 9,468,042 and 9,462,774 outstanding on April 3, 2021 and January 2, 2021, respectively | 95 | 95 |
Additional paid-in capital | 268,006 | 266,695 |
Accumulated other comprehensive loss | (35,742) | (35,992) |
Accumulated stockholders’ deficit | (109,846) | (171,706) |
Total stockholders’ equity | 122,513 | 59,092 |
Total liabilities and stockholders’ equity | $ 1,212,480 | $ 1,048,130 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Apr. 03, 2021 | Jan. 02, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 5,573 | $ 4,123 |
Debt discount, current | 0 | 74 |
Debt discount, noncurrent | $ 2,615 | $ 8,936 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares outstanding (in shares) | 9,468,042 | 9,462,774 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Beginning balance (in shares) at Dec. 28, 2019 | 9,366 | ||||
Beginning balance at Dec. 28, 2019 | $ (26,083) | $ 94 | $ 260,974 | $ (34,563) | $ (252,588) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | (787) | (787) | |||
Foreign currency translation, net of tax | 3 | 3 | |||
Impact of pension plan, net of tax | 196 | 196 | |||
Vesting of restricted stock units (in shares) | 2 | ||||
Compensation related to share-based grants | 1,004 | 1,004 | |||
Repurchase of shares to satisfy employee tax withholdings (in shares) | (1) | ||||
Repurchase of shares to satisfy employee tax withholdings | (7) | (7) | |||
Other | (10) | 9 | (19) | ||
Ending balance (in shares) at Mar. 28, 2020 | 9,367 | ||||
Ending balance at Mar. 28, 2020 | (25,684) | $ 94 | 261,980 | (34,383) | (253,375) |
Beginning balance (in shares) at Jan. 02, 2021 | 9,463 | ||||
Beginning balance at Jan. 02, 2021 | 59,092 | $ 95 | 266,695 | (35,992) | (171,706) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 61,860 | 61,860 | |||
Foreign currency translation, net of tax | (6) | (6) | |||
Impact of pension plan, net of tax | 239 | 239 | |||
Vesting of restricted stock units (in shares) | 8 | ||||
Compensation related to share-based grants | 1,410 | 1,410 | |||
Repurchase of shares to satisfy employee tax withholdings (in shares) | (3) | ||||
Repurchase of shares to satisfy employee tax withholdings | (99) | (99) | |||
Other | 17 | 17 | |||
Ending balance (in shares) at Apr. 03, 2021 | 9,468 | ||||
Ending balance at Apr. 03, 2021 | $ 122,513 | $ 95 | $ 268,006 | $ (35,742) | $ (109,846) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | Jan. 02, 2021 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 61,860 | $ (787) | |
Adjustments to reconcile net income (loss) to cash used in operations: | |||
Provision for (benefit from) income taxes | 21,746 | (5,026) | |
Depreciation and amortization | 7,465 | 7,635 | |
Amortization of debt issuance costs | 603 | 956 | |
Adjustments to debt issuance costs associated with term loan | 5,791 | 0 | |
Gains from sales of property | (1,287) | (525) | |
Amortization of deferred gains from real estate | (984) | (984) | |
Share-based compensation | 1,410 | 1,004 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (125,172) | (55,068) | |
Inventories | (34,315) | (32,828) | |
Accounts payable | 53,812 | 30,050 | |
Prepaid and other current assets | (1,246) | (3,006) | |
Other assets and liabilities | (14,291) | (608) | |
Net cash used in operating activities | (24,608) | (59,187) | |
Cash flows from investing activities: | |||
Proceeds from sale of assets | 1,810 | 44 | |
Property and equipment investments | (1,122) | (1,245) | |
Net cash provided by (used in) investing activities | 688 | (1,201) | |
Cash flows from financing activities: | |||
Borrowings on revolving credit facilities | 262,210 | 204,196 | |
Repayments on revolving credit facilities | (191,943) | (149,079) | |
Repayments on term loan | (43,204) | (69,238) | |
Proceeds from real estate financing transactions | 0 | 78,329 | |
Debt financing costs | (861) | (336) | |
Repurchase of shares to satisfy employee tax withholdings | (56) | (7) | |
Principal payments on finance lease liabilities | (2,129) | (2,562) | |
Net cash provided by financing activities | 24,017 | 61,303 | |
Net change in cash | 97 | 915 | |
Cash at beginning of period | 82 | 11,643 | $ 11,643 |
Cash at end of period | 179 | 12,558 | $ 82 |
Supplemental Cash Flow Information | |||
Net income tax refunds during the period | 0 | 352 | |
Interest paid during the period | $ 9,971 | $ 13,558 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Apr. 03, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited interim Condensed Consolidated Financial Statements include the accounts of BlueLinx Holdings Inc. and its wholly owned subsidiaries (the “Company”). We derived the condensed consolidated balance sheet at April 3, 2021, from the audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended January 2, 2021 (the “Fiscal 2020 Form 10-K”), as filed with the Securities and Exchange Commission on March 3, 2021. In the opinion of our management, the condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of our statements of operations and comprehensive income (loss) for the three months ended April 3, 2021, and March 28, 2020, our balance sheets at April 3, 2021, and January 2, 2021, our statements of stockholders’ equity (deficit) for the three months ended April 3, 2021, and March 28, 2020, and our statements of cash flows for the three months ended April 3, 2021, and March 28, 2020. We have condensed or omitted certain notes and other information from the interim condensed consolidated financial statements presented in this report. Therefore, these condensed consolidated interim financial statements should be read in conjunction with the Fiscal 2020 Form 10-K. In addition, certain prior period amounts have been reclassified to conform to the current period's presentation. These reclassifications did not impact operating income or consolidated net income (loss). The results for the three months ended April 3, 2021, are not necessarily indicative of results that may be expected for the full year ending January 1, 2022, or any other interim period. We operate on a 5-4-4 fiscal calendar. Our fiscal year ends on the Saturday closest to December 31 of that fiscal year and may comprise 53 weeks in certain years. Our 2021 fiscal year contains 52 weeks and ends on January 1, 2022. Fiscal 2020 contained 53 weeks and ended on January 2, 2021. Our financial statements are prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which requires us to make estimates based on assumptions about current and, for some estimates, future economic and market conditions, which affect reported amounts and related disclosures in our financial statements. Although our current estimates contemplate current and expected future conditions, as applicable, it is reasonably possible that actual conditions could differ from our expectations, which could materially affect our results of operations and financial position. Some of our estimates may be affected by the ongoing novel coronavirus (“COVID-19”) pandemic. The severity, magnitude, and duration, as well as the economic consequences of the COVID-19 pandemic, are uncertain, rapidly changing, and difficult to predict. As a result, our accounting estimates and assumptions may change over time in response to the continuing COVID-19 pandemic. On April 13, 2018, we completed the acquisition of Cedar Creek Holdings, Inc. (“Cedar Creek”). Results for Cedar Creek are included in the consolidated financial information presented herein. Reclassification of Prior Period Presentation We have reclassified certain costs within the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three months ended March 28, 2020, from selling, general and administrative to amortization of deferred gains on real estate and other operating expenses. These costs primarily relate to the amortization of gains from prior real estate sales and the integration of the acquisition of Cedar Creek. We have reclassified certain payables within the Condensed Consolidated Balance Sheets for the year ended January 2, 2021, from other current liabilities to taxes payable. These payables relate to amounts due to various tax authorities. Recently Adopted Accounting Standards Defined Benefit Pension Plan . In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-14, “Compensation-Retirement-Benefits-Defined Benefit Plans-General (Subtopic 715-20).” The amendments in this update modify the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans by removing six previously required disclosures and adding two. The ASU also removes the disclosure requirements for the effects of a one-percentage-point change on the assumed health care costs and the effect of this change in rates on service cost, interest cost, and the benefit obligation for postretirement healthcare benefits. We adopted this standard effective for fiscal year 2020. The adoption of this standard did not have a material impact on the Company's consolidated financial position, results of operations, or cash flows. Fair Value Measurement . In August 2018, the FASB issued ASU No, 2018-13, “Fair Value (“FV”) Measurement (Topic 820).” In addition to making certain modifications, the standard removed the requirements to disclose: (i) the amount of and reasons for transfers between Level 1 and Level 2 of the FV hierarchy; (ii) the policy for timing transfers between levels; and (iii) the valuation process for Level 3 FV measurements. The standard will require public entities to disclose: (a) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 FV measurements held at the end of the reporting period; and (b) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 FV measurements. The additional disclosure requirements should be applied prospectively for the most recent interim or annual period presented in the fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented. We adopted this standard effective December 29, 2019, the first day of our 2020 fiscal year. The adoption of this standard did not have a material impact on the Company's consolidated financial position, results of operations, or cash flows. Accounting Standards Effective in Future Periods Credit Impairment Losses. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326).” This ASU sets forth a current expected credit loss (“CECL”) model which requires the measurement of all expected credit losses for financial instruments or other assets (e.g., trade receivables), held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model, is applicable to the measurement of credit losses on financial assets measured at amortized cost, and applies to some off-balance sheet credit exposures. The standard also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity's portfolio. ASU 2019-10 extended the effective date of ASU 2016-13 to interim and annual periods beginning after December 15, 2022, for certain public business entities, including smaller reporting companies. We have not completed our assessment of the standard, but we do not expect the adoption to have a material impact on the Company's consolidated financial position, results of operations, or cash flows. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Apr. 03, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets In connection with the acquisition of Cedar Creek, we acquired certain intangible assets. As of April 3, 2021, our intangible assets consist of goodwill and other intangible assets including customer relationships, noncompete agreements, and trade names. Goodwill Goodwill is the excess of the cost of an acquired entity over the fair value of tangible and intangible assets (including customer relationships, noncompete agreements, and trade names) acquired, and liabilities assumed, under acquisition accounting for business combinations. As of April 3, 2021, goodwill was $47.8 million. Goodwill is not subject to amortization but must be tested for impairment at least annually. This test requires us to assign goodwill to a reporting unit and to determine if the fair value of the reporting unit’s goodwill is less than its carrying amount. We evaluate goodwill for impairment during the fourth quarter of each fiscal year. In addition, we will evaluate the carrying value for impairment between annual impairment tests if an event occurs or circumstances change that would indicate the carrying amount may be impaired. Such events and indicators may include, without limitation, significant declines in the industries in which our products are used, significant changes in capital market conditions, and significant changes in our market capitalization. No such indicators were present during the first quarter of fiscal 2021. Our one reporting unit has a fair value that exceeds its carrying value as of April 3, 2021. Definite-Lived Intangible Assets On April 3, 2021, the gross carrying amounts, accumulated amortization, and net carrying amounts of our definite-lived intangible assets were as follows: Weighted Average Remaining Useful Lives Gross Carrying Amounts Accumulated (1) Net Carrying Amounts (In thousands) Customer relationships 9 $ 25,500 $ (10,663) $ 14,837 Noncompete agreements 1 8,254 (6,111) 2,143 Trade names 1 6,826 (6,739) 87 Total $ 40,580 $ (23,513) $ 17,067 (1) Intangible assets, except customer relationships, are amortized on a straight-line basis. Customer relationships are amortized on a double declining balance method. Amortization Expense Amortization expense for the definite-lived intangible assets was $1.8 million and $2.0 million for the three-month periods ended April 3, 2021, and March 28, 2020, respectively. Estimated amortization expense for definite-lived intangible assets for the remaining portion of 2021 and the next five fiscal years is as follows: Estimated Amortization (In thousands) 2021 $ 3,499 2022 2,763 2023 1,807 2024 1,505 2025 1,423 2026 1,423 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Apr. 03, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition We recognize revenue when the following criteria are met: (1) Contract with the customer has been identified; (2) Performance obligations in the contract have been identified; (3) Transaction price has been determined; (4) Transaction price has been allocated to the performance obligations; and (5) When (or as) performance obligations are satisfied. Contracts with our customers are generally in the form of standard terms and conditions of sale. From time to time, we may enter into specific contracts, which may affect delivery terms. Performance obligations in our contracts generally consist solely of delivery of goods. For all sales channel types, consisting of warehouse, direct, and reload sales, we typically satisfy our performance obligations upon shipment. Our customer payment terms are typical for our industry, and may vary by the type and location of our customer and the products or services offered. The term between invoicing and when payment is due is not deemed to be significant by us. For certain sales channels and/or products, our standard terms of payment may be as early as ten days. In addition, we provide inventory to certain customers through pre-arranged agreements on a consignment basis. Customer consigned inventory is maintained and stored by certain customers; however, ownership and risk of loss remain with us. All revenues recognized are net of trade allowances (i.e., rebates), cash discounts, and sales returns. Cash discounts and sales returns are estimated using historical experience. Trade allowances are based on the estimated obligations and historical experience. Adjustments to earnings resulting from revisions to estimates on discounts and returns have been insignificant for each of the reported periods. Certain customers may receive cash-based incentives or credits, which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be provided to customers and reduce revenues recognized. We believe that there will not be significant changes to our estimates of variable consideration. The following table presents our revenues disaggregated by revenue source. Certain prior year amounts have been reclassified to conform to the current year product mix of structural and specialty products. Sales and usage-based taxes are excluded from revenues. Three Months Ended April 3, 2021 March 28, 2020 (In thousands) Structural products $ 462,409 $ 240,722 Specialty products 563,060 421,348 Total net sales $ 1,025,469 $ 662,070 The following table presents our revenues disaggregated by sales channel. Warehouse sales are delivered from our warehouses. Reload sales are similar to warehouse sales but are shipped from third-party warehouses where we store owned products to enhance our operating efficiencies. This channel is employed primarily to service strategic customers that would be less economical to service from our warehouses, and to distribute large volumes of imported products from port facilities. Direct sales are shipped from the manufacturer to the customer without our taking physical possession of the inventory and, as a result, typically generate lower margins than our warehouse and reload distribution channels. This distribution channel requires the lowest amount of committed capital and fixed costs. Following the acquisition and integration of Cedar Creek, our reload sales were less distinct from warehouse sales, as they have been classified in prior periods. Sales and usage-based taxes are excluded from revenues. Three Months Ended April 3, 2021 March 28, 2020 (In thousands) Warehouse and reload $ 849,419 $ 545,892 Direct 191,130 125,582 Customer discounts and rebates (15,080) (9,404) Total net sales $ 1,025,469 $ 662,070 |
Assets Held for Sale
Assets Held for Sale | 3 Months Ended |
Apr. 03, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held for Sale | Assets Held for SaleDuring the quarter ended April 3, 2021, we sold the non-operating facility located in Birmingham, Alabama, previously identified as “held for sale.” We recognized a gain of $1.3 million in the Condensed Consolidated Statement of Operations as a result of this sale.As of April 3, 2021, and January 2, 2021, the net book value of total assets held for sale was $0.9 million and $1.3 million, respectively, and was included in “Other current assets” in our Condensed Consolidated Balance Sheets. Only one of our non-operating properties was designated as “held for sale” as of April 3, 2021. This property is a former distribution facility located in Houston, Texas. We vacated this property and designated it as held for sale during fiscal 2020. We continue to actively market this property, and we plan to sell this property within the next 12 months. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Apr. 03, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt As of April 3, 2021, and January 2, 2021, long-term debt consisted of the following: April 3, 2021 January 2, 2021 (In thousands) Revolving Credit Facility (1) $ 358,514 $ 288,247 Term Loan Facility (2) — 43,204 Finance lease obligations (3) 281,274 273,118 639,788 604,569 Unamortized debt issuance costs (2,615) (9,010) 637,173 595,559 Less: current maturities of long-term debt 7,459 6,846 Long-term debt, net of current maturities $ 629,714 $ 588,713 (1) The average effective interest rate was 2.4 percent and 2.8 percent for the quarters ended April 3, 2021 and January 2, 2021, respectively. (2) The average interest rate, exclusive of fees and prepayment premiums, was 8.0 percent for the quarters ended April 3, 2021, and January 2, 2021. (3) Refer to Note 8, Leases , for interest rates associated with finance lease obligations. Revolving Credit Facility We have a revolving credit facility that we entered into in April 2018 with Wells Fargo Bank, National Association, as administrative agent, and certain other financial institutions party thereto (the “Revolving Credit Facility”), with a maturity date of October 10, 2022. The Revolving Credit facility includes a committed senior secured asset-based revolving loan and letter of credit facility of up to $600 million, and an uncommitted accordion feature that permits us to increase the facility by an aggregate additional principal amount of up to $150 million. Our obligations under the Revolving Credit Facility are secured by a security interest in substantially all of our assets other than real property. Loans under the Revolving Credit Facility bear interest at a rate per annum equal to (i) LIBOR plus a margin ranging from 1.75 percent to 2.25 percent, with the amount of such margin determined based upon the average of our excess availability for the immediately preceding fiscal quarter as calculated by the administrative agent, for loans based on LIBOR, or (ii) the administrative agent’s base rate plus a margin ranging from 0.75 percent to 1.25 percent, with the amount of such margin determined based upon the average of our excess availability for the immediately preceding fiscal quarter as calculated by the administrative agent, for loans based on the base rate. As of April 3, 2021, we had outstanding borrowings of $358.5 million and excess availability of $238.1 million under our Revolving Credit Facility. As of January 2, 2021, we had outstanding borrowings of $288.2 million and excess availability of $184.3 million under our Revolving Credit Facility. Our average effective interest rate under the facility was 2.4 percent and 2.8 percent for the quarters ended April 3, 2021 and January 2, 2021, respectively. For the quarter ended March 28, 2020, our average effective interest rate under the Revolving Credit Facility was 4.2 percent. The Revolving Credit Facility contains certain financial and other covenants, and our right to borrow under the Revolving Credit Facility is conditioned upon, among other things, our compliance with these covenants. We were in compliance with all covenants under the Revolving Credit Facility as of April 3, 2021. Term Loan Facility We previously had a term loan facility that we entered into in April 2018 with HPS Investments Partners, LLC, as administrative and collateral agent, and certain other financial institutions party thereto (the “Term Loan Facility”), with a maturity date of October 13, 2023. The Term Loan Facility provided for a senior secured first lien loan facility in an initial aggregate principal amount of $180 million and was secured by a security interest in substantially all of our assets. As of January 2, 2021, we had outstanding borrowings of $43.2 million under the Term Loan Facility. On April 2, 2021, we repaid the remaining outstanding principal balance of the Term Loan Facility, and, as a result, as of April 3, 2021, we had no outstanding borrowings under the Term Loan Facility, which has been extinguished. In connection with our repayment of the outstanding principal balance in full on April 2, 2021, we expensed $5.8 million of debt issuance costs that we had been amortizing in connection with our former Term Loan Facility. These costs are included within interest expense, net, on the Condensed Consolidated Statements of Operations and reported separately as an adjustment to net income in our Condensed Consolidated Statements of Cash Flows. Our average interest rate under the facility, exclusive of fees and prepayment premiums, was approximately 8.0 percent for the quarters ended April 3, 2021 and January 2, 2021. For the quarter ended March 28, 2020, our average interest rate under the Term Loan Facility, exclusive of fees and prepayment premiums, was approximately 8.7 percent. Finance Lease Obligations Our finance lease liabilities consist of leases related to equipment and vehicles, and real estate, with the majority of those finance leases related to real estate. For more information on our finance lease obligations, refer to Note 8, Leases . |
Net Periodic Pension Benefit
Net Periodic Pension Benefit | 3 Months Ended |
Apr. 03, 2021 | |
Retirement Benefits [Abstract] | |
Net Periodic Pension Benefit | Net Periodic Pension Benefit The following table shows the components of our net periodic pension benefit: Three Months Ended April 3, 2021 March 28, 2020 (In thousands) Service cost (1) $ — $ — Interest cost on projected benefit obligation 505 723 Expected return on plan assets (1,140) (1,210) Amortization of unrecognized gain 321 263 Net periodic pension benefit $ (314) $ (224) (1) Service cost is not a part of our net periodic pension benefit as our pension plan is frozen for all participants. |
Stock Compensation
Stock Compensation | 3 Months Ended |
Apr. 03, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Compensation | Stock CompensationDuring the three months ended April 3, 2021, and March 28, 2020, we incurred stock compensation expense of $1.4 million and $1.0 million, respectively. The increase in our stock compensation expense for the three-month period is attributable to having more outstanding equity-based awards during this period than in the prior year. |
Leases
Leases | 3 Months Ended |
Apr. 03, 2021 | |
Leases [Abstract] | |
Leases | Leases We have operating and finance leases for certain of our distribution facilities, office space, land, mobile fleet, and equipment. Many of our leases are non-cancelable and typically have a defined initial lease term, and some provide options to renew at our election for specified periods of time. The majority of our leases have remaining lease terms of 1 year to 15 years, some of which include one or more options to extend the leases for 5 years. Our leases generally provide for fixed annual rentals. Certain of our leases include provisions for escalating rent based on, among other things, contractually defined increases and/or changes in the Consumer Price Index (“CPI”). The known changes to lease payments are included in the lease liability at lease commencement. Unknown changes related to CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. In addition, a subset of our vehicle lease cost is considered variable. Some of our leases require us to pay taxes, insurance, and maintenance expenses associated with the leased assets. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We determine if an arrangement is a lease at inception and assess lease classification as either operating or finance at lease inception or modification. Operating lease right-of use (“ROU”) assets and liabilities are presented separately on the condensed consolidated balance sheets. Finance lease ROU assets are included in property and equipment and the finance lease obligations are presented separately in the condensed consolidated balance sheet. When a lease does not provide an implicit interest rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. We have also made the accounting policy election to not separate lease components from non-lease components related to our mobile fleet asset class. Finance Lease Liabilities Our finance lease liabilities consist of leases related to equipment and vehicles, and real estate. As noted in the table below, a majority of our finance leases, formally known as capital leases, relate to real estate. During 2017 and 2018, we entered into real estate financing transactions on warehouse facilities in Tampa, FL; Ft. Worth, TX; Bellingham, PA; Frederick, MD; Lawrenceville, GA; and Raleigh, NC. These transactions were completed pursuant to sale-leaseback arrangements, and upon their completion, we entered into long-term leases on the properties for initial terms of 15 years with multiple 5-year renewal options, with one having a single 10-year renewal option. We accounted for these transactions in accordance with the FASB’s Accounting Standards Codification (“ASC”) Topic 840, which was the lease accounting standard in effect at the inception of these arrangements. We have recorded these transactions as finance lease liabilities on our balance sheet. As of April 3, 2021, and January 2, 2021, total unrecognized deferred gains related to these transactions were $81.1 million and $82.0 million, respectively. During 2019, we entered into real estate financing transactions on two warehouse facilities. On May 19, 2019, we completed a real estate financing transaction on a warehouse facility in University Park, IL for net proceeds of $21.8 million. On June 20, 2019, we completed a real estate financing transaction on a warehouse facility in Yulee, FL for net proceeds of $13.3 million. These two transactions were completed pursuant to sale-leaseback arrangements, and upon their completion, we entered into long-term leases on the properties for initial terms of 15 years with multiple 5-year renewal options. Gross proceeds of these transactions were $45.0 million. During fiscal 2020, we completed several real estate financing transactions. On December 31, 2019, we completed real estate financing transactions on warehouse facilities in Madison, TN; Kansas City, MO; Richmond, VA; and Bridgeton, MO for aggregate net proceeds of $27.2 million. On January 31, 2020, we completed real estate financing transactions on warehouse facilities in Charlotte, NC; Memphis, TN; Independence, KY; San Antonio, TX; Portland, ME; Denville, NJ; Yaphank, NY; Pensacola, FL; and Tallmadge, OH for aggregate net proceeds of $34.1 million. On February 28, 2020, we completed a real estate financing transaction on a warehouse facility in Elkhart, IN for net proceeds of $7.5 million. These transactions were completed pursuant to sale-leaseback arrangements, and upon their completion, we entered into long-term leases on the properties for initial terms from 15 years to 18 years with multiple 5-year renewal options. Gross proceeds of these transactions were $78.3 million. We determined that the transactions in fiscal 2019 and 2020 did not qualify as sales in accordance with ASC 842. Therefore, for accounting purposes, the transactions were not accounted for as sale-leaseback transactions, and no gain or loss was recorded. We determined that these leases qualified for finance lease treatment and recorded them accordingly. The net book value of the assets related to these transactions remains on our books as property and equipment and we continue to depreciate the assets over their remaining useful lives. During the first quarter of 2021, we recorded finance leases of $10.2 million related to new tractors put into service as part of our mobile fleet. These leases were entered into for a period of four years each. The following table presents our assets and liabilities related to our leases as of April 3, 2021 and January 2, 2021: April 3, 2021 January 2, 2021 (In thousands) Assets Classification Operating lease right-of-use assets Operating lease right-of-use assets $ 48,969 $ 51,142 Finance lease right-of-use assets (1) Property and equipment, net 156,382 148,561 Total lease right-of-use assets $ 205,351 $ 199,703 Liabilities Current portion Operating lease liabilities Operating lease liabilities - short term $ 5,123 $ 6,076 Finance lease liabilities Finance lease liabilities - short term 7,459 5,675 Non-current portion Operating lease liabilities Operating lease liabilities - long term 44,021 44,965 Finance lease liabilities Finance lease liabilities - long term 273,815 267,443 Total lease liabilities $ 330,418 $ 324,159 (1) Finance lease right-of-use assets are presented net of accumulated amortization of $62.5 million and $58.6 million as of April 3, 2021 and January 2, 2021, respectively. The components of lease expense were as follows: Three Months Ended April 3, 2021 March 28, 2020 (In thousands) Operating lease cost: $ 3,050 $ 3,120 Finance lease cost: Amortization of right-of-use assets $ 3,986 $ 3,351 Interest on lease liabilities 6,157 6,146 Total finance lease costs $ 10,143 $ 9,497 Supplemental cash flow information related to leases was as follows: Three Months Ended April 3, 2021 March 28, 2020 (In thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,564 $ 2,774 Operating cash flows from finance leases 6,157 6,146 Financing cash flows from finance leases $ 2,129 $ 2,562 Right-of-use assets obtained in exchange for lease obligations Operating leases $ — $ — Finance leases $ 10,211 $ — Supplemental balance sheet information related to leases was as follows: April 3, 2021 January 2, 2021 (In thousands) Finance leases Property and equipment $ 218,926 $ 207,147 Accumulated depreciation (62,544) (58,586) Property and equipment, net $ 156,382 $ 148,561 Weighted Average Remaining Lease Term (in years) Operating leases 11.09 11.14 Finance leases 16.34 16.08 Weighted Average Discount Rate Operating leases 9.32 % 9.28 % Finance leases 9.82 % 9.87 % The major categories of our finance lease liabilities as of April 3, 2021 and January 2, 2021 are as follows: April 3, 2021 January 2, 2021 (In thousands) Equipment and vehicles $ 37,576 $ 29,434 Real estate 243,698 243,684 Total finance leases $ 281,274 $ 273,118 As of April 3, 2021, maturities of lease liabilities were as follows: Operating leases Finance leases (In thousands) 2021 $ 10,478 $ 24,796 2022 8,686 32,401 2023 8,380 32,096 2024 7,610 31,481 2025 7,656 27,716 Thereafter 43,193 380,773 Total lease payments $ 86,003 $ 529,263 Less: imputed interest (36,859) (247,989) Total $ 49,144 $ 281,274 On January 2, 2021, maturities of lease liabilities were as follows: Operating leases Finance leases (In thousands) 2021 $ 11,215 $ 30,159 2022 9,161 29,453 2023 8,400 29,189 2024 7,283 28,649 2025 7,392 28,102 Thereafter 44,092 380,511 Total lease payments $ 87,543 $ 526,063 Less: imputed interest (36,502) (252,945) Total $ 51,041 $ 273,118 |
Leases | Leases We have operating and finance leases for certain of our distribution facilities, office space, land, mobile fleet, and equipment. Many of our leases are non-cancelable and typically have a defined initial lease term, and some provide options to renew at our election for specified periods of time. The majority of our leases have remaining lease terms of 1 year to 15 years, some of which include one or more options to extend the leases for 5 years. Our leases generally provide for fixed annual rentals. Certain of our leases include provisions for escalating rent based on, among other things, contractually defined increases and/or changes in the Consumer Price Index (“CPI”). The known changes to lease payments are included in the lease liability at lease commencement. Unknown changes related to CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. In addition, a subset of our vehicle lease cost is considered variable. Some of our leases require us to pay taxes, insurance, and maintenance expenses associated with the leased assets. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We determine if an arrangement is a lease at inception and assess lease classification as either operating or finance at lease inception or modification. Operating lease right-of use (“ROU”) assets and liabilities are presented separately on the condensed consolidated balance sheets. Finance lease ROU assets are included in property and equipment and the finance lease obligations are presented separately in the condensed consolidated balance sheet. When a lease does not provide an implicit interest rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. We have also made the accounting policy election to not separate lease components from non-lease components related to our mobile fleet asset class. Finance Lease Liabilities Our finance lease liabilities consist of leases related to equipment and vehicles, and real estate. As noted in the table below, a majority of our finance leases, formally known as capital leases, relate to real estate. During 2017 and 2018, we entered into real estate financing transactions on warehouse facilities in Tampa, FL; Ft. Worth, TX; Bellingham, PA; Frederick, MD; Lawrenceville, GA; and Raleigh, NC. These transactions were completed pursuant to sale-leaseback arrangements, and upon their completion, we entered into long-term leases on the properties for initial terms of 15 years with multiple 5-year renewal options, with one having a single 10-year renewal option. We accounted for these transactions in accordance with the FASB’s Accounting Standards Codification (“ASC”) Topic 840, which was the lease accounting standard in effect at the inception of these arrangements. We have recorded these transactions as finance lease liabilities on our balance sheet. As of April 3, 2021, and January 2, 2021, total unrecognized deferred gains related to these transactions were $81.1 million and $82.0 million, respectively. During 2019, we entered into real estate financing transactions on two warehouse facilities. On May 19, 2019, we completed a real estate financing transaction on a warehouse facility in University Park, IL for net proceeds of $21.8 million. On June 20, 2019, we completed a real estate financing transaction on a warehouse facility in Yulee, FL for net proceeds of $13.3 million. These two transactions were completed pursuant to sale-leaseback arrangements, and upon their completion, we entered into long-term leases on the properties for initial terms of 15 years with multiple 5-year renewal options. Gross proceeds of these transactions were $45.0 million. During fiscal 2020, we completed several real estate financing transactions. On December 31, 2019, we completed real estate financing transactions on warehouse facilities in Madison, TN; Kansas City, MO; Richmond, VA; and Bridgeton, MO for aggregate net proceeds of $27.2 million. On January 31, 2020, we completed real estate financing transactions on warehouse facilities in Charlotte, NC; Memphis, TN; Independence, KY; San Antonio, TX; Portland, ME; Denville, NJ; Yaphank, NY; Pensacola, FL; and Tallmadge, OH for aggregate net proceeds of $34.1 million. On February 28, 2020, we completed a real estate financing transaction on a warehouse facility in Elkhart, IN for net proceeds of $7.5 million. These transactions were completed pursuant to sale-leaseback arrangements, and upon their completion, we entered into long-term leases on the properties for initial terms from 15 years to 18 years with multiple 5-year renewal options. Gross proceeds of these transactions were $78.3 million. We determined that the transactions in fiscal 2019 and 2020 did not qualify as sales in accordance with ASC 842. Therefore, for accounting purposes, the transactions were not accounted for as sale-leaseback transactions, and no gain or loss was recorded. We determined that these leases qualified for finance lease treatment and recorded them accordingly. The net book value of the assets related to these transactions remains on our books as property and equipment and we continue to depreciate the assets over their remaining useful lives. During the first quarter of 2021, we recorded finance leases of $10.2 million related to new tractors put into service as part of our mobile fleet. These leases were entered into for a period of four years each. The following table presents our assets and liabilities related to our leases as of April 3, 2021 and January 2, 2021: April 3, 2021 January 2, 2021 (In thousands) Assets Classification Operating lease right-of-use assets Operating lease right-of-use assets $ 48,969 $ 51,142 Finance lease right-of-use assets (1) Property and equipment, net 156,382 148,561 Total lease right-of-use assets $ 205,351 $ 199,703 Liabilities Current portion Operating lease liabilities Operating lease liabilities - short term $ 5,123 $ 6,076 Finance lease liabilities Finance lease liabilities - short term 7,459 5,675 Non-current portion Operating lease liabilities Operating lease liabilities - long term 44,021 44,965 Finance lease liabilities Finance lease liabilities - long term 273,815 267,443 Total lease liabilities $ 330,418 $ 324,159 (1) Finance lease right-of-use assets are presented net of accumulated amortization of $62.5 million and $58.6 million as of April 3, 2021 and January 2, 2021, respectively. The components of lease expense were as follows: Three Months Ended April 3, 2021 March 28, 2020 (In thousands) Operating lease cost: $ 3,050 $ 3,120 Finance lease cost: Amortization of right-of-use assets $ 3,986 $ 3,351 Interest on lease liabilities 6,157 6,146 Total finance lease costs $ 10,143 $ 9,497 Supplemental cash flow information related to leases was as follows: Three Months Ended April 3, 2021 March 28, 2020 (In thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,564 $ 2,774 Operating cash flows from finance leases 6,157 6,146 Financing cash flows from finance leases $ 2,129 $ 2,562 Right-of-use assets obtained in exchange for lease obligations Operating leases $ — $ — Finance leases $ 10,211 $ — Supplemental balance sheet information related to leases was as follows: April 3, 2021 January 2, 2021 (In thousands) Finance leases Property and equipment $ 218,926 $ 207,147 Accumulated depreciation (62,544) (58,586) Property and equipment, net $ 156,382 $ 148,561 Weighted Average Remaining Lease Term (in years) Operating leases 11.09 11.14 Finance leases 16.34 16.08 Weighted Average Discount Rate Operating leases 9.32 % 9.28 % Finance leases 9.82 % 9.87 % The major categories of our finance lease liabilities as of April 3, 2021 and January 2, 2021 are as follows: April 3, 2021 January 2, 2021 (In thousands) Equipment and vehicles $ 37,576 $ 29,434 Real estate 243,698 243,684 Total finance leases $ 281,274 $ 273,118 As of April 3, 2021, maturities of lease liabilities were as follows: Operating leases Finance leases (In thousands) 2021 $ 10,478 $ 24,796 2022 8,686 32,401 2023 8,380 32,096 2024 7,610 31,481 2025 7,656 27,716 Thereafter 43,193 380,773 Total lease payments $ 86,003 $ 529,263 Less: imputed interest (36,859) (247,989) Total $ 49,144 $ 281,274 On January 2, 2021, maturities of lease liabilities were as follows: Operating leases Finance leases (In thousands) 2021 $ 11,215 $ 30,159 2022 9,161 29,453 2023 8,400 29,189 2024 7,283 28,649 2025 7,392 28,102 Thereafter 44,092 380,511 Total lease payments $ 87,543 $ 526,063 Less: imputed interest (36,502) (252,945) Total $ 51,041 $ 273,118 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 03, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Environmental and Legal Matters From time to time, we are involved in various proceedings incidental to our businesses, and we are subject to a variety of environmental and pollution control laws and regulations in all jurisdictions in which we operate. Although the ultimate outcome of these proceedings cannot be determined with certainty, based on presently available information management believes that adequate reserves have been established for probable losses with respect thereto and receivables recorded for expected receipts from settlements. Management further believes that, while the ultimate outcome of one or more of these matters could be material to our operating results in any given quarter, it will not have a materially adverse effect on our consolidated financial condition, our results of operations, or our cash flows. Collective Bargaining Agreements |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Apr. 03, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Comprehensive income (loss) includes both net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) results from items deferred from recognition into our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Accumulated other comprehensive loss is separately presented on our Condensed Consolidated Balance Sheets as part of stockholders’ equity. The changes in balances for each component of accumulated other comprehensive loss for the three months ended April 3, 2021, were as follows: Foreign currency, net Defined Other, Total Accumulated Other Comprehensive Loss (In thousands) January 2, 2021, beginning balance, net of tax $ 660 $ (36,855) $ 203 $ (35,992) Other comprehensive income (loss), net of tax (1) (6) 239 17 250 April 3, 2021, ending balance, net of tax $ 654 $ (36,616) $ 220 $ (35,742) (1) For the three months ended April 3, 2021, the actuarial gain recognized in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) as a component of net periodic pension benefit was $0.3 million, net of tax of $0.1 million. Please see Note 6, Net Periodic Pension Benefit , for further information. |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 03, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Effective Tax Rate Our effective tax rate for the three months ended April 3, 2021, and March 28, 2020, was 26.0 percent and 86.5 percent, respectively. Our effective tax rate for the three months ended April 3, 2021 was impacted by the permanent addback of certain nondeductible expenses, including meals and entertainment and executive compensation, slightly offset by the partial release of the valuation allowance for state net operating loss carryforwards we anticipate being able to utilize based on our taxable income through the end of the first quarter of fiscal 2021, combined with a benefit from the vesting of restricted stock units, which occurred during the period. Our effective tax rate for the three months ended March 28, 2020 was primarily impacted by a discrete tax benefit of $3.9 million resulting from the release of the valuation allowance associated with nondeductible interest expense under Section 163(j) of the Internal Revenue Code (“IRC”) as a result of changes allowed under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act that was enacted on March 27, 2020 which raised the allowable percentage of deductible interest from 30 percent to 50 percent of adjusted taxable income. Our effective tax rate for the three months ended March 28, 2020, was further impacted by the permanent addback of certain nondeductible expenses, including meals and entertainment and executive compensation, and the effect of the partial valuation allowance for separate company state income tax losses. Deferred Tax Assets Quarterly, we assess the carrying value of our deferred tax assets for impairment by evaluating the weight of available evidence at the end of each fiscal quarter. In our evaluation of the weight of available evidence at the end of the current quarter, we considered the recent reported income in the current quarter, as well as the reported income for 2020 and the reported losses for 2019 and 2018, which resulted in a three-year cumulative income situation as positive evidence which carried substantial weight. While this was substantial, it was not the only evidence we evaluated. We also considered evidence related to the four sources of taxable income to determine whether such positive evidence outweighed the negative evidence. The evidence considered included: • future reversals of existing taxable temporary differences; • future taxable income exclusive of reversing temporary differences and carryforwards; • taxable income in prior carryback years, if carryback is permitted under the tax law; and • tax planning strategies. In addition to the positive evidence discussed above, we considered as positive evidence forecasted taxable income, the detail scheduling of timing of the reversal of our deferred tax assets and liabilities, and the evidence from business and tax planning strategies. As of April 3, 2021, in our evaluation of the weight of available evidence, we concluded that our deferred tax assets were not impaired. |
Income (Loss) per Share
Income (Loss) per Share | 3 Months Ended |
Apr. 03, 2021 | |
Earnings Per Share [Abstract] | |
Income (Loss) per Share | Income (Loss) per ShareWe calculate basic income (loss) per share by dividing net income (loss) by the weighted average number of common shares outstanding. We calculate diluted income (loss) per share using the treasury stock method, by dividing net income (loss) by the weighted average number of common shares outstanding plus the dilutive effect of outstanding share-based awards, including restricted stock units. Due to the financial results for the three-month period ended March 28, 2020, 0.1 million of incremental shares were excluded from the computation of diluted weighted averages outstanding, because their effect would be anti-dilutive. The reconciliation of basic net income (loss) and diluted net income (loss) per common share for the three-month periods ended April 3, 2021, and March 28, 2020, were as follows: Three Months Ended April 3, 2021 March 28, 2020 (In thousands, except per share data) Net income (loss) $ 61,860 $ (787) Weighted-average shares outstanding - basic 9,466 9,366 Dilutive effect of share-based awards 392 — Weighted-average shares outstanding - diluted 9,858 9,366 Basic income (loss) per share $ 6.53 $ (0.08) Diluted income (loss) per share $ 6.28 $ (0.08) |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 03, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim Condensed Consolidated Financial Statements include the accounts of BlueLinx Holdings Inc. and its wholly owned subsidiaries (the “Company”). We derived the condensed consolidated balance sheet at April 3, 2021, from the audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended January 2, 2021 (the “Fiscal 2020 Form 10-K”), as filed with the Securities and Exchange Commission on March 3, 2021. In the opinion of our management, the condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of our statements of operations and comprehensive income (loss) for the three months ended April 3, 2021, and March 28, 2020, our balance sheets at April 3, 2021, and January 2, 2021, our statements of stockholders’ equity (deficit) for the three months ended April 3, 2021, and March 28, 2020, and our statements of cash flows for the three months ended April 3, 2021, and March 28, 2020. We have condensed or omitted certain notes and other information from the interim condensed consolidated financial statements presented in this report. Therefore, these condensed consolidated interim financial statements should be read in conjunction with the Fiscal 2020 Form 10-K. In addition, certain prior period amounts have been reclassified to conform to the current period's presentation. These reclassifications did not impact operating income or consolidated net income (loss). The results for the three months ended April 3, 2021, are not necessarily indicative of results that may be expected for the full year ending January 1, 2022, or any other interim period. We operate on a 5-4-4 fiscal calendar. Our fiscal year ends on the Saturday closest to December 31 of that fiscal year and may comprise 53 weeks in certain years. Our 2021 fiscal year contains 52 weeks and ends on January 1, 2022. Fiscal 2020 contained 53 weeks and ended on January 2, 2021. Our financial statements are prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which requires us to make estimates based on assumptions about current and, for some estimates, future economic and market conditions, which affect reported amounts and related disclosures in our financial statements. Although our current estimates contemplate current and expected future conditions, as applicable, it is reasonably possible that actual conditions could differ from our expectations, which could materially affect our results of operations and financial position. Some of our estimates may be affected by the ongoing novel coronavirus (“COVID-19”) pandemic. The severity, magnitude, and duration, as well as the economic consequences of the COVID-19 pandemic, are uncertain, rapidly changing, and difficult to predict. As a result, our accounting estimates and assumptions may change over time in response to the continuing COVID-19 pandemic. On April 13, 2018, we completed the acquisition of Cedar Creek Holdings, Inc. (“Cedar Creek”). Results for Cedar Creek are included in the consolidated financial information presented herein. |
Reclassification of Prior Period Presentation | Reclassification of Prior Period Presentation We have reclassified certain costs within the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three months ended March 28, 2020, from selling, general and administrative to amortization of deferred gains on real estate and other operating expenses. These costs primarily relate to the amortization of gains from prior real estate sales and the integration of the acquisition of Cedar Creek. |
Recently Adopted Accounting Standards and Standards Effective in Future Years | Recently Adopted Accounting Standards Defined Benefit Pension Plan . In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-14, “Compensation-Retirement-Benefits-Defined Benefit Plans-General (Subtopic 715-20).” The amendments in this update modify the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans by removing six previously required disclosures and adding two. The ASU also removes the disclosure requirements for the effects of a one-percentage-point change on the assumed health care costs and the effect of this change in rates on service cost, interest cost, and the benefit obligation for postretirement healthcare benefits. We adopted this standard effective for fiscal year 2020. The adoption of this standard did not have a material impact on the Company's consolidated financial position, results of operations, or cash flows. Fair Value Measurement . In August 2018, the FASB issued ASU No, 2018-13, “Fair Value (“FV”) Measurement (Topic 820).” In addition to making certain modifications, the standard removed the requirements to disclose: (i) the amount of and reasons for transfers between Level 1 and Level 2 of the FV hierarchy; (ii) the policy for timing transfers between levels; and (iii) the valuation process for Level 3 FV measurements. The standard will require public entities to disclose: (a) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 FV measurements held at the end of the reporting period; and (b) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 FV measurements. The additional disclosure requirements should be applied prospectively for the most recent interim or annual period presented in the fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented. We adopted this standard effective December 29, 2019, the first day of our 2020 fiscal year. The adoption of this standard did not have a material impact on the Company's consolidated financial position, results of operations, or cash flows. Accounting Standards Effective in Future Periods Credit Impairment Losses. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326).” This ASU sets forth a current expected credit loss (“CECL”) model which requires the measurement of all expected credit losses for financial instruments or other assets (e.g., trade receivables), held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model, is applicable to the measurement of credit losses on financial assets measured at amortized cost, and applies to some off-balance sheet credit exposures. The standard also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity's portfolio. ASU 2019-10 extended the effective date of ASU 2016-13 to interim and annual periods beginning after December 15, 2022, for certain public business entities, including smaller reporting companies. We have not completed our assessment of the standard, but we do not expect the adoption to have a material impact on the Company's consolidated financial position, results of operations, or cash flows. |
Revenue Recognition | We recognize revenue when the following criteria are met: (1) Contract with the customer has been identified; (2) Performance obligations in the contract have been identified; (3) Transaction price has been determined; (4) Transaction price has been allocated to the performance obligations; and (5) When (or as) performance obligations are satisfied. Contracts with our customers are generally in the form of standard terms and conditions of sale. From time to time, we may enter into specific contracts, which may affect delivery terms. Performance obligations in our contracts generally consist solely of delivery of goods. For all sales channel types, consisting of warehouse, direct, and reload sales, we typically satisfy our performance obligations upon shipment. Our customer payment terms are typical for our industry, and may vary by the type and location of our customer and the products or services offered. The term between invoicing and when payment is due is not deemed to be significant by us. For certain sales channels and/or products, our standard terms of payment may be as early as ten days. In addition, we provide inventory to certain customers through pre-arranged agreements on a consignment basis. Customer consigned inventory is maintained and stored by certain customers; however, ownership and risk of loss remain with us. All revenues recognized are net of trade allowances (i.e., rebates), cash discounts, and sales returns. Cash discounts and sales returns are estimated using historical experience. Trade allowances are based on the estimated obligations and historical experience. Adjustments to earnings resulting from revisions to estimates on discounts and returns have been insignificant for |
Earnings per Share | We calculate basic income (loss) per share by dividing net income (loss) by the weighted average number of common shares outstanding. We calculate diluted income (loss) per share using the treasury stock method, by dividing net income (loss) by the weighted average number of common shares outstanding plus the dilutive effect of outstanding share-based awards, including restricted stock units |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Definite-Lived Intangible Assets | On April 3, 2021, the gross carrying amounts, accumulated amortization, and net carrying amounts of our definite-lived intangible assets were as follows: Weighted Average Remaining Useful Lives Gross Carrying Amounts Accumulated (1) Net Carrying Amounts (In thousands) Customer relationships 9 $ 25,500 $ (10,663) $ 14,837 Noncompete agreements 1 8,254 (6,111) 2,143 Trade names 1 6,826 (6,739) 87 Total $ 40,580 $ (23,513) $ 17,067 (1) Intangible assets, except customer relationships, are amortized on a straight-line basis. Customer relationships are amortized on a double declining balance method. |
Schedule of Definite-Lived Intangible Asset Amortization | Estimated amortization expense for definite-lived intangible assets for the remaining portion of 2021 and the next five fiscal years is as follows: Estimated Amortization (In thousands) 2021 $ 3,499 2022 2,763 2023 1,807 2024 1,505 2025 1,423 2026 1,423 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenues Disaggregated by Revenue Source and Sales Channel | The following table presents our revenues disaggregated by revenue source. Certain prior year amounts have been reclassified to conform to the current year product mix of structural and specialty products. Sales and usage-based taxes are excluded from revenues. Three Months Ended April 3, 2021 March 28, 2020 (In thousands) Structural products $ 462,409 $ 240,722 Specialty products 563,060 421,348 Total net sales $ 1,025,469 $ 662,070 The following table presents our revenues disaggregated by sales channel. Warehouse sales are delivered from our warehouses. Reload sales are similar to warehouse sales but are shipped from third-party warehouses where we store owned products to enhance our operating efficiencies. This channel is employed primarily to service strategic customers that would be less economical to service from our warehouses, and to distribute large volumes of imported products from port facilities. Direct sales are shipped from the manufacturer to the customer without our taking physical possession of the inventory and, as a result, typically generate lower margins than our warehouse and reload distribution channels. This distribution channel requires the lowest amount of committed capital and fixed costs. Following the acquisition and integration of Cedar Creek, our reload sales were less distinct from warehouse sales, as they have been classified in prior periods. Sales and usage-based taxes are excluded from revenues. Three Months Ended April 3, 2021 March 28, 2020 (In thousands) Warehouse and reload $ 849,419 $ 545,892 Direct 191,130 125,582 Customer discounts and rebates (15,080) (9,404) Total net sales $ 1,025,469 $ 662,070 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | As of April 3, 2021, and January 2, 2021, long-term debt consisted of the following: April 3, 2021 January 2, 2021 (In thousands) Revolving Credit Facility (1) $ 358,514 $ 288,247 Term Loan Facility (2) — 43,204 Finance lease obligations (3) 281,274 273,118 639,788 604,569 Unamortized debt issuance costs (2,615) (9,010) 637,173 595,559 Less: current maturities of long-term debt 7,459 6,846 Long-term debt, net of current maturities $ 629,714 $ 588,713 (1) The average effective interest rate was 2.4 percent and 2.8 percent for the quarters ended April 3, 2021 and January 2, 2021, respectively. (2) The average interest rate, exclusive of fees and prepayment premiums, was 8.0 percent for the quarters ended April 3, 2021, and January 2, 2021. (3) Refer to Note 8, Leases , for interest rates associated with finance lease obligations. |
Net Periodic Pension Benefit (T
Net Periodic Pension Benefit (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of net periodic pension cost for pension plans | The following table shows the components of our net periodic pension benefit: Three Months Ended April 3, 2021 March 28, 2020 (In thousands) Service cost (1) $ — $ — Interest cost on projected benefit obligation 505 723 Expected return on plan assets (1,140) (1,210) Amortization of unrecognized gain 321 263 Net periodic pension benefit $ (314) $ (224) (1) Service cost is not a part of our net periodic pension benefit as our pension plan is frozen for all participants. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information | The following table presents our assets and liabilities related to our leases as of April 3, 2021 and January 2, 2021: April 3, 2021 January 2, 2021 (In thousands) Assets Classification Operating lease right-of-use assets Operating lease right-of-use assets $ 48,969 $ 51,142 Finance lease right-of-use assets (1) Property and equipment, net 156,382 148,561 Total lease right-of-use assets $ 205,351 $ 199,703 Liabilities Current portion Operating lease liabilities Operating lease liabilities - short term $ 5,123 $ 6,076 Finance lease liabilities Finance lease liabilities - short term 7,459 5,675 Non-current portion Operating lease liabilities Operating lease liabilities - long term 44,021 44,965 Finance lease liabilities Finance lease liabilities - long term 273,815 267,443 Total lease liabilities $ 330,418 $ 324,159 (1) Finance lease right-of-use assets are presented net of accumulated amortization of $62.5 million and $58.6 million as of April 3, 2021 and January 2, 2021, respectively. Supplemental balance sheet information related to leases was as follows: April 3, 2021 January 2, 2021 (In thousands) Finance leases Property and equipment $ 218,926 $ 207,147 Accumulated depreciation (62,544) (58,586) Property and equipment, net $ 156,382 $ 148,561 Weighted Average Remaining Lease Term (in years) Operating leases 11.09 11.14 Finance leases 16.34 16.08 Weighted Average Discount Rate Operating leases 9.32 % 9.28 % Finance leases 9.82 % 9.87 % The major categories of our finance lease liabilities as of April 3, 2021 and January 2, 2021 are as follows: April 3, 2021 January 2, 2021 (In thousands) Equipment and vehicles $ 37,576 $ 29,434 Real estate 243,698 243,684 Total finance leases $ 281,274 $ 273,118 |
Lease Cost | The components of lease expense were as follows: Three Months Ended April 3, 2021 March 28, 2020 (In thousands) Operating lease cost: $ 3,050 $ 3,120 Finance lease cost: Amortization of right-of-use assets $ 3,986 $ 3,351 Interest on lease liabilities 6,157 6,146 Total finance lease costs $ 10,143 $ 9,497 Supplemental cash flow information related to leases was as follows: Three Months Ended April 3, 2021 March 28, 2020 (In thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,564 $ 2,774 Operating cash flows from finance leases 6,157 6,146 Financing cash flows from finance leases $ 2,129 $ 2,562 Right-of-use assets obtained in exchange for lease obligations Operating leases $ — $ — Finance leases $ 10,211 $ — |
Operating Lease Maturities | As of April 3, 2021, maturities of lease liabilities were as follows: Operating leases Finance leases (In thousands) 2021 $ 10,478 $ 24,796 2022 8,686 32,401 2023 8,380 32,096 2024 7,610 31,481 2025 7,656 27,716 Thereafter 43,193 380,773 Total lease payments $ 86,003 $ 529,263 Less: imputed interest (36,859) (247,989) Total $ 49,144 $ 281,274 On January 2, 2021, maturities of lease liabilities were as follows: Operating leases Finance leases (In thousands) 2021 $ 11,215 $ 30,159 2022 9,161 29,453 2023 8,400 29,189 2024 7,283 28,649 2025 7,392 28,102 Thereafter 44,092 380,511 Total lease payments $ 87,543 $ 526,063 Less: imputed interest (36,502) (252,945) Total $ 51,041 $ 273,118 |
Finance Lease Maturities | As of April 3, 2021, maturities of lease liabilities were as follows: Operating leases Finance leases (In thousands) 2021 $ 10,478 $ 24,796 2022 8,686 32,401 2023 8,380 32,096 2024 7,610 31,481 2025 7,656 27,716 Thereafter 43,193 380,773 Total lease payments $ 86,003 $ 529,263 Less: imputed interest (36,859) (247,989) Total $ 49,144 $ 281,274 On January 2, 2021, maturities of lease liabilities were as follows: Operating leases Finance leases (In thousands) 2021 $ 11,215 $ 30,159 2022 9,161 29,453 2023 8,400 29,189 2024 7,283 28,649 2025 7,392 28,102 Thereafter 44,092 380,511 Total lease payments $ 87,543 $ 526,063 Less: imputed interest (36,502) (252,945) Total $ 51,041 $ 273,118 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Equity [Abstract] | |
Schedule of changes in accumulated balances for each component of other comprehensive income (loss) | The changes in balances for each component of accumulated other comprehensive loss for the three months ended April 3, 2021, were as follows: Foreign currency, net Defined Other, Total Accumulated Other Comprehensive Loss (In thousands) January 2, 2021, beginning balance, net of tax $ 660 $ (36,855) $ 203 $ (35,992) Other comprehensive income (loss), net of tax (1) (6) 239 17 250 April 3, 2021, ending balance, net of tax $ 654 $ (36,616) $ 220 $ (35,742) (1) For the three months ended April 3, 2021, the actuarial gain recognized in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) as a component of net periodic pension benefit was $0.3 million, net of tax of $0.1 million. Please see Note 6, Net Periodic Pension Benefit , for further information. |
Income (Loss) per Share (Tables
Income (Loss) per Share (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings (Loss) per Share | The reconciliation of basic net income (loss) and diluted net income (loss) per common share for the three-month periods ended April 3, 2021, and March 28, 2020, were as follows: Three Months Ended April 3, 2021 March 28, 2020 (In thousands, except per share data) Net income (loss) $ 61,860 $ (787) Weighted-average shares outstanding - basic 9,466 9,366 Dilutive effect of share-based awards 392 — Weighted-average shares outstanding - diluted 9,858 9,366 Basic income (loss) per share $ 6.53 $ (0.08) Diluted income (loss) per share $ 6.28 $ (0.08) |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Apr. 03, 2021USD ($)reporting_unit | Mar. 28, 2020USD ($) | Jan. 02, 2021USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 47,772 | $ 47,772 | |
Number of reporting units | reporting_unit | 1 | ||
Amortization of intangible assets | $ 1,800 | $ 2,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Definite Lived Intangible Assets (Details) $ in Thousands | 3 Months Ended |
Apr. 03, 2021USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Gross Carrying Amounts | $ 40,580 |
Accumulated Amortization | (23,513) |
Net Carrying Amounts | $ 17,067 |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Remaining Useful Lives | 9 years |
Gross Carrying Amounts | $ 25,500 |
Accumulated Amortization | (10,663) |
Net Carrying Amounts | $ 14,837 |
Noncompete agreements | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Remaining Useful Lives | 1 year |
Gross Carrying Amounts | $ 8,254 |
Accumulated Amortization | (6,111) |
Net Carrying Amounts | $ 2,143 |
Trade names | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Remaining Useful Lives | 1 year |
Gross Carrying Amounts | $ 6,826 |
Accumulated Amortization | (6,739) |
Net Carrying Amounts | $ 87 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Amortization Expense (Details) $ in Thousands | Apr. 03, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2021 | $ 3,499 |
2022 | 2,763 |
2023 | 1,807 |
2024 | 1,505 |
2025 | 1,423 |
2026 | $ 1,423 |
Revenue Recognition (Details)
Revenue Recognition (Details) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021USD ($)day | Mar. 28, 2020USD ($) | |
Disaggregation of Revenue [Line Items] | ||
Standard terms of payment, number of days | day | 10 | |
Net sales | $ 1,025,469 | $ 662,070 |
Warehouse and reload | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 849,419 | 545,892 |
Direct | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 191,130 | 125,582 |
Customer discounts and rebates | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | (15,080) | (9,404) |
Structural products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 462,409 | 240,722 |
Specialty products | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 563,060 | $ 421,348 |
Assets Held for Sale (Details)
Assets Held for Sale (Details) $ in Thousands | 3 Months Ended | ||
Apr. 03, 2021USD ($)property | Mar. 28, 2020USD ($) | Jan. 02, 2021USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gains from sales of property | $ 1,287 | $ 525 | |
Number of properties held for sale | property | 1 | ||
Distribution Facility | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gains from sales of property | $ 1,300 | ||
Discontinued Operations, Held-for-sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Assets held for sale | $ 900 | $ 1,300 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) | Apr. 03, 2021 | Jan. 02, 2021 | Mar. 28, 2020 |
Debt Instrument [Line Items] | |||
Finance lease obligations | $ 281,274,000 | $ 273,118,000 | |
Total debt, gross | 639,788,000 | 604,569,000 | |
Unamortized debt issuance costs | (2,615,000) | (9,010,000) | |
Long-term debt | 637,173,000 | 595,559,000 | |
Less: current maturities of long-term debt | 7,459,000 | 6,846,000 | |
Long-term debt, net of current maturities | 629,714,000 | 588,713,000 | |
Term Loan | Secured debt | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 0 | $ 43,204,000 | |
Weighted average interest rate | 8.00% | 8.00% | 8.70% |
Revolving Credit Facility | Line of credit | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 358,514,000 | $ 288,247,000 | |
Weighted average interest rate | 2.40% | 2.80% | 4.20% |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | Apr. 02, 2021 | Apr. 03, 2021 | Mar. 28, 2020 | Jan. 02, 2021 | Apr. 30, 2018 |
Debt Instrument [Line Items] | |||||
Adjustments to debt issuance costs associated with term loan | $ 5,791,000 | $ 0 | |||
Line of credit | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 600,000,000 | ||||
Line of credit facility, additional borrowing capacity under uncommitted accordion feature | 150,000,000 | ||||
Outstanding principal balance | 358,500,000 | $ 288,200,000 | |||
Line of credit facility, remaining borrowing capacity | 238,100,000 | 184,300,000 | |||
Outstanding principal balance | $ 358,514,000 | $ 288,247,000 | |||
Weighted average interest rate | 2.40% | 4.20% | 2.80% | ||
Term Loan Facility | Secured debt | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 180,000,000 | ||||
Outstanding principal balance | $ 0 | $ 43,204,000 | |||
Adjustments to debt issuance costs associated with term loan | $ 5,800,000 | ||||
Weighted average interest rate | 8.00% | 8.70% | 8.00% | ||
LIBOR | Minimum | Line of credit | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Variable rate | 1.75% | ||||
LIBOR | Maximum | Line of credit | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Variable rate | 2.25% | ||||
Base Rate | Minimum | Line of credit | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Variable rate | 0.75% | ||||
Base Rate | Maximum | Line of credit | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Variable rate | 1.25% |
Net Periodic Pension Benefit (D
Net Periodic Pension Benefit (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Retirement Benefits [Abstract] | ||
Service cost (1) | $ 0 | $ 0 |
Interest cost on projected benefit obligation | 505 | 723 |
Expected return on plan assets | (1,140) | (1,210) |
Amortization of unrecognized gain | 321 | 263 |
Net periodic pension benefit | $ (314) | $ (224) |
Stock Compensation (Details)
Stock Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Stock based compensation expense | $ 1.4 | $ 1 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | Feb. 28, 2020USD ($) | Jan. 31, 2020USD ($) | Dec. 31, 2019USD ($)warehouse | Jun. 20, 2019USD ($) | May 19, 2019USD ($) | Apr. 03, 2021USD ($)option | Mar. 28, 2020USD ($) | Jan. 02, 2021USD ($) | Dec. 28, 2019USD ($) | Dec. 29, 2018 |
Lessee, Lease, Description [Line Items] | ||||||||||
Number of Options | option | 1 | |||||||||
Number of financing transactions | warehouse | 2 | |||||||||
Lease renewal term | 5 years | |||||||||
Finance lease, renewal term | 5 years | |||||||||
Finance lease obligations | $ 281,274 | $ 273,118 | ||||||||
Proceeds from real estate financing transactions | 0 | $ 78,329 | ||||||||
Warehouse faciility | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Number of financing transactions | warehouse | 2 | |||||||||
Finance lease, term of contract | 15 years | |||||||||
Finance lease, renewal term | 5 years | 5 years | ||||||||
Finance lease obligations | $ 81,100 | $ 82,000 | ||||||||
Proceeds from real estate financing transactions | $ 7,500 | $ 34,100 | $ 27,200 | $ 78,300 | $ 45,000 | |||||
Warehouse faciility | University Park, IL | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Proceeds from real estate financing transactions | $ 21,800 | |||||||||
Warehouse faciility | Yulee, FL | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Proceeds from real estate financing transactions | $ 13,300 | |||||||||
Transportation Equipment | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Finance lease, term of contract | 4 years | |||||||||
Finance lease obligations | $ 10,200 | |||||||||
Minimum | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Lease term | 1 year | |||||||||
Finance lease, renewal term | 10 years | |||||||||
Minimum | Warehouse faciility | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Finance lease, term of contract | 15 years | |||||||||
Maximum | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Lease term | 15 years | |||||||||
Finance lease, term of contract | 15 years | |||||||||
Maximum | Warehouse faciility | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Finance lease, term of contract | 18 years |
Leases - Assets and Liabilities
Leases - Assets and Liabilities (Details) - USD ($) $ in Thousands | Apr. 03, 2021 | Jan. 02, 2021 |
Assets | ||
Operating lease right-of-use assets | $ 48,969 | $ 51,142 |
Finance lease right-of-use assets | 156,382 | 148,561 |
Total lease right-of-use assets | 205,351 | 199,703 |
Current portion | ||
Operating lease liabilities | 5,123 | 6,076 |
Finance lease liabilities | 7,459 | 5,675 |
Non-current portion | ||
Operating lease liabilities | 44,021 | 44,965 |
Finance lease liabilities | 273,815 | 267,443 |
Total lease liabilities | 330,418 | 324,159 |
Accumulated depreciation | $ 62,544 | $ 58,586 |
Finance lease, right-of-use asset, statement of financial position | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Leases [Abstract] | ||
Operating lease cost: | $ 3,050 | $ 3,120 |
Amortization of right-of-use assets | 3,986 | 3,351 |
Interest on lease liabilities | 6,157 | 6,146 |
Total finance lease costs | $ 10,143 | $ 9,497 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 2,564 | $ 2,774 |
Operating cash flows from finance leases | 6,157 | 6,146 |
Financing cash flows from finance leases | 2,129 | 2,562 |
Operating leases | 0 | 0 |
Finance leases | $ 10,211 | $ 0 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet (Details) - USD ($) $ in Thousands | Apr. 03, 2021 | Jan. 02, 2021 |
Finance leases | ||
Property and equipment | $ 218,926 | $ 207,147 |
Accumulated depreciation | (62,544) | (58,586) |
Property and equipment, net | $ 156,382 | $ 148,561 |
Weighted Average Remaining Lease Term (in years) | ||
Operating leases | 11 years 1 month 2 days | 11 years 1 month 20 days |
Finance leases | 16 years 4 months 2 days | 16 years 29 days |
Weighted Average Discount Rate | ||
Operating leases | 9.32% | 9.28% |
Finance leases | 9.82% | 9.87% |
Total finance leases | $ 281,274 | $ 273,118 |
Finance lease, right-of-use asset, statement of financial position | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization |
Equipment and vehicles | ||
Weighted Average Discount Rate | ||
Total finance leases | $ 37,576 | $ 29,434 |
Real estate | ||
Weighted Average Discount Rate | ||
Total finance leases | $ 243,698 | $ 243,684 |
Leases - Lease Maturities (Deta
Leases - Lease Maturities (Details) - USD ($) $ in Thousands | Apr. 03, 2021 | Jan. 02, 2021 |
Operating leases | ||
2021 | $ 10,478 | |
2021/2022 | 8,686 | $ 11,215 |
2022/2023 | 8,380 | 9,161 |
2023/2024 | 7,610 | 8,400 |
2024/2025 | 7,656 | 7,283 |
2025 | 7,392 | |
Thereafter | 44,092 | |
Thereafter | 43,193 | |
Total lease payments | 86,003 | 87,543 |
Less: imputed interest | (36,859) | (36,502) |
Total | 49,144 | 51,041 |
Finance leases | ||
2021 | 24,796 | |
2021/2022 | 32,401 | 30,159 |
2022/2023 | 32,096 | 29,453 |
2023/2024 | 31,481 | 29,189 |
2024/2025 | 27,716 | 28,649 |
2025 | 28,102 | |
Thereafter | 380,511 | |
Thereafter | 380,773 | |
Total lease payments | 529,263 | 526,063 |
Less: imputed interest | (247,989) | (252,945) |
Total | $ 281,274 | $ 273,118 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 3 Months Ended |
Apr. 03, 2021employeeAgreement | |
Commitments and Contingencies Disclosure [Abstract] | |
Entity number of employees | employee | 2,100 |
Percentage of employees for part time | 1.00% |
Percentage of employees represented by various labor unions | 23.00% |
Number of CBAs up for renewal, next fiscal year agreement | 5 |
Percentage of employees covered by CBAs | 5.00% |
Number of CBAs renewed | 1 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | $ 59,092 | $ (26,083) |
Other comprehensive income, net of tax | 250 | 180 |
Ending balance | 122,513 | (25,684) |
Reclassification of actuarial loss | (300) | |
Reclassification of actuarial loss, tax | 100 | |
Foreign currency, net of tax | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | 660 | |
Other comprehensive income, net of tax | (6) | |
Ending balance | 654 | |
Defined benefit pension plan, net of tax | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (36,855) | |
Other comprehensive income, net of tax | 239 | |
Ending balance | (36,616) | |
Other, net of tax | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | 203 | |
Other comprehensive income, net of tax | 17 | |
Ending balance | 220 | |
Total Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (35,992) | (34,563) |
Ending balance | $ (35,742) | $ (34,383) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 26.00% | 86.50% |
Tax benefit relating to valuation allowance | $ (3.9) |
Income (Loss) per Share (Detail
Income (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from diluted shares calculation (in shares) | 100 | |
Net income (loss) | $ 61,860 | $ (787) |
Weighted-average shares outstanding - basic (in shares) | 9,466 | 9,366 |
Dilutive effect of share-based awards (in shares) | 392 | 0 |
Weighted-average shares outstanding - diluted (in shares) | 9,858 | 9,366 |
Basic income (loss) (in dollars per share) | $ 6.53 | $ (0.08) |
Diluted income (loss) (in dollars per share) | $ 6.28 | $ (0.08) |