Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 26, 2019 | Feb. 18, 2020 | Jun. 27, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 26, 2019 | ||
Entity File Number | 001-38070 | ||
Entity Registrant Name | Floor & Decor Holdings, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 27-3730271 | ||
Entity Address, Address Line One | 2500 Windy Ridge Parkway SE Atlanta, Georgia | ||
Entity Address, City or Town | Atlanta | ||
Entity Address, Postal Zip Code | 30339 | ||
Entity Address, State or Province | GA | ||
City Area Code | 404 | ||
Local Phone Number | 471-1634 | ||
Title of 12(b) Security | Class A Common Stock, $0.001 par value per share | ||
Trading Symbol | FND | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 101,580,656 | ||
Entity Public Float | $ 2.8 | ||
Entity Central Index Key | 0001507079 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-26 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 26, 2019 | Dec. 27, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 27,037 | $ 644 |
Income taxes receivable | 2,868 | 4,324 |
Receivables, net | 69,301 | 67,527 |
Inventories, net | 581,865 | 471,014 |
Prepaid expenses and other current assets | 20,415 | 15,949 |
Total current assets | 701,486 | 559,458 |
Fixed assets, net | 456,289 | 328,366 |
Right-of-use assets | 822,256 | |
Intangible assets, net | 109,299 | 109,330 |
Goodwill | 227,447 | 227,447 |
Other assets | 7,532 | 9,490 |
Total long-term assets | 1,622,823 | 674,633 |
Total assets | 2,324,309 | 1,234,091 |
Current liabilities: | ||
Current portion of term loans | 3,500 | |
Current portion of lease liabilities | 74,592 | |
Trade accounts payable | 368,459 | 313,503 |
Accrued expenses and other current liabilities | 102,807 | 82,038 |
Deferred revenue | 6,683 | 5,244 |
Total current liabilities | 552,541 | 404,285 |
Term loans | 142,606 | 141,834 |
Deferred rent | 36,980 | |
Lease liabilities | 844,269 | |
Deferred income tax liabilities, net | 18,378 | 26,838 |
Tenant improvement allowances | 37,295 | |
Other liabilities | 2,179 | 2,550 |
Total long-term liabilities | 1,007,432 | 245,497 |
Total liabilities | 1,559,973 | 649,782 |
Commitments and contingencies (Note 9) | ||
Capital stock: | ||
Additional paid-in capital | 370,413 | 340,462 |
Accumulated other comprehensive (loss) income, net | (193) | 186 |
Retained earnings | 394,015 | 243,563 |
Total stockholders' equity | 764,336 | 584,309 |
Total liabilities and stockholders' equity | 2,324,309 | 1,234,091 |
Class A Common Stock | ||
Capital stock: | ||
Common stock | $ 101 | $ 98 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 26, 2019 | Dec. 27, 2018 |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Class A Common Stock | ||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 450,000,000 | 450,000,000 |
Common stock, shares issued | 101,457,858 | 97,588,539 |
Common stock, shares outstanding | 101,457,858 | 97,588,539 |
Class B Common Stock | ||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 0 | 0 |
Common stock, shares outstanding | 0 | 0 |
Class C Common Stock | ||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 0 | 0 |
Common stock, shares outstanding | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Income Statement [Abstract] | |||
Net Sales | $ 2,045,456 | $ 1,709,848 | $ 1,384,767 |
Revenue, Product and Service [Extensible List] | us-gaap:ProductMember | ||
Cost of sales | $ 1,182,442 | 1,007,580 | 812,203 |
Cost, Product and Service [Extensible List] | us-gaap:ProductMember | ||
Gross profit | $ 863,014 | 702,268 | 572,564 |
Operating expenses: | |||
Selling and store operating | 546,853 | 439,495 | 353,647 |
General and administrative | 132,386 | 105,327 | 84,661 |
Pre-opening | 24,594 | 26,145 | 16,485 |
Total operating expenses | 703,833 | 570,967 | 454,793 |
Operating income | 159,181 | 131,301 | 117,771 |
Interest expense, net | 8,801 | 8,917 | 13,777 |
Loss on extinguishment of debt | 5,442 | ||
Income before income taxes | 150,380 | 122,384 | 98,552 |
(Benefit) provision for income taxes | (251) | 6,197 | (4,236) |
Net income | 150,631 | 116,187 | 102,788 |
Change in fair value of hedge instruments, net of tax, post-adoption | (379) | ||
Change in fair value of hedge instruments, net of tax, pre-adoption | 391 | (381) | |
Total comprehensive income | $ 150,252 | $ 116,578 | $ 102,407 |
Basic earnings per share | $ 1.51 | $ 1.20 | $ 1.13 |
Diluted earnings per share | $ 1.44 | $ 1.11 | $ 1.03 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common stockClass A Common Stock | Common stockClass B Common Stock | Common stockClass C Common Stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings | Class A Common Stock | Class B Common Stock | Class C Common Stock | Total |
Balance at Dec. 29, 2016 | $ 77 | $ 6 | $ 117,270 | $ 176 | $ 16,754 | $ 134,283 | ||||
Beginning balance (in shares) at Dec. 29, 2016 | 76,847,000 | 396,000 | 6,275,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock-based compensation expense | 4,951 | 8 | 4,959 | |||||||
Conversion of Class B Common Stock (in shares) | 396,000 | (396,000) | ||||||||
Conversion of Class C Common Stock | $ 6 | $ (6) | ||||||||
Conversion of Class C Common Stock (in shares) | 6,275,000 | (6,275,000) | ||||||||
Exercise of stock options | $ 2 | 8,872 | $ 8,874 | |||||||
Exercise of stock options (in shares) | 1,828,000 | 1,828,339 | ||||||||
IPO proceeds | $ 10 | 192,326 | $ 192,336 | |||||||
Number of shares issued | 10,147,000 | |||||||||
Issuance of restricted stock award (in shares) | 15,000 | |||||||||
Other comprehensive gain (loss), net of tax, pre-adoption | (381) | (381) | ||||||||
Net income | 102,788 | 102,788 | ||||||||
Balance at Dec. 28, 2017 | $ 96 | 323,419 | (205) | 119,550 | 442,860 | |||||
Ending balance (in shares) at Dec. 28, 2017 | 95,509,000 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Cumulative effect from adoption | 7,826 | 7,826 | ||||||||
Stock-based compensation expense | 6,514 | 6,514 | ||||||||
Exercise of stock options | $ 2 | 10,529 | $ 10,531 | |||||||
Exercise of stock options (in shares) | 2,069,000 | 2,069,195 | ||||||||
Issuance of restricted stock award (in shares) | 10,000 | |||||||||
Other comprehensive gain (loss), net of tax, pre-adoption | 391 | $ 391 | ||||||||
Net income | 116,187 | 116,187 | ||||||||
Balance at Dec. 27, 2018 | $ 98 | 340,462 | 186 | 243,563 | 584,309 | |||||
Ending balance (in shares) at Dec. 27, 2018 | 97,588,000 | 97,588,539 | 0 | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Cumulative effect from adoption | (179) | (179) | ||||||||
Stock-based compensation expense | 8,711 | 8,711 | ||||||||
Exercise of stock options | $ 3 | 18,795 | $ 18,798 | |||||||
Exercise of stock options (in shares) | 3,741,000 | 3,740,749 | ||||||||
Shares issued under employee stock plan | 2,445 | $ 2,445 | ||||||||
Shares issued under employee stock plan (in shares) | 105,000 | 104,363 | ||||||||
Issuance of restricted stock award (in shares) | 24,000 | |||||||||
Other comprehensive gain (loss), net of tax, post-adoption | (379) | $ (379) | ||||||||
Net income | 150,631 | 150,631 | ||||||||
Balance at Dec. 26, 2019 | $ 101 | $ 370,413 | $ (193) | $ 394,015 | $ 764,336 | |||||
Ending balance (in shares) at Dec. 26, 2019 | 101,458,000 | 101,457,858 | 0 | 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Operating activities | |||
Net income | $ 150,631 | $ 116,187 | $ 102,788 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 74,001 | 51,992 | 38,062 |
Non-cash loss on early extinguishment of debt | 5,442 | ||
Loss on asset impairments and disposals | 4,111 | 23 | 128 |
Amortization of tenant improvement allowances | (4,494) | (3,311) | |
Operating lease termination | 1,926 | ||
Deferred income taxes | (10,584) | (968) | (557) |
Interest cap derivative contracts | 446 | (212) | |
Stock based compensation expense | 8,711 | 6,514 | 4,959 |
Changes in operating assets and liabilities: | |||
Receivables, net | (17,850) | (13,486) | (19,508) |
Inventories, net | (110,851) | (53,557) | (134,248) |
Trade accounts payable | 54,956 | 54,773 | 100,264 |
Accrued expenses and other current liabilities | 20,744 | (1,731) | 9,485 |
Income taxes | 3,894 | 6,221 | (18,259) |
Deferred revenue | 1,439 | 3,002 | 8,067 |
Deferred rent | 14,455 | 9,243 | |
Tenant improvement allowances | 15,010 | 7,984 | |
Other, net | 23,084 | (8,105) | (1,332) |
Net cash provided by operating activities | 204,658 | 185,624 | 109,207 |
Investing activities | |||
Purchases of fixed assets | (196,008) | (151,397) | (102,253) |
Net cash used in investing activities | (196,008) | (151,397) | (102,253) |
Financing activities | |||
Borrowings on revolving line of credit | 100,100 | 217,050 | 236,700 |
Payments on revolving line of credit | (100,100) | (258,050) | (245,700) |
Payments on term loans | (3,500) | (3,500) | (197,500) |
Net proceeds from initial public offering | 192,336 | ||
Proceeds from exercise of stock options | 18,798 | 10,531 | 8,874 |
Proceeds from employee stock purchase plan | 2,445 | ||
Debt issuance costs | (170) | (1,559) | |
Net cash provided by (used in) financing activities | 17,743 | (34,139) | (6,849) |
Net increase in cash and cash equivalents | 26,393 | 88 | 105 |
Cash and cash equivalents, beginning of the period | 644 | 556 | 451 |
Cash and cash equivalents, end of the period | 27,037 | 644 | 556 |
Supplemental disclosures of cash flow information | |||
Buildings and equipment acquired under operating leases | 277,392 | ||
Cash paid for interest | 7,388 | 7,563 | 15,748 |
Cash paid for income taxes, net of refunds | 6,453 | 1,082 | 14,392 |
Fixed assets accrued at the end of the period | $ 19,527 | $ 15,120 | 8,521 |
Fixed assets acquired as part of lease - paid for by lessor | $ 1,786 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 26, 2019 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Nature of Business Floor & Decor Holdings, Inc. (f/k/a FDO Holdings, Inc.), together with its subsidiaries (the “Company,” “we,” “our” or “us”) is a highly differentiated, rapidly growing specialty retailer of hard surface flooring and related accessories. We offer a broad in-stock assortment of tile, wood, laminate, vinyl, and natural stone flooring along with decorative and installation accessories at everyday low prices. Our stores appeal to a variety of customers, including professional installers and commercial businesses (“Pro”), Do It Yourself customers (“DIY”), and customers who buy the products for professional installation (“Buy it Yourself” or “BIY”). We operate within one reportable segment. As of December 26, 2019, the Company, through its wholly owned subsidiary, Floor and Decor Outlets of America, Inc. (“F&D”), operates 120 warehouse-format stores, which average 76,000 square feet, and one small-format standalone design center in 30 states, as well as four distribution centers and an e-commerce site, FloorandDecor.com. Fiscal Year The Company’s fiscal year is the 52 - or 53 -week period ending on the Thursday on or preceding December 31st. Fiscal years ended December 26, 2019 (“fiscal 2019”), December 27, 2018 (“fiscal 2018”), and December 28, 2017 (“fiscal 2017”) include 52 weeks. When a 53 -week fiscal year occurs, we report the additional week at the end of the fiscal fourth quarter. 52 -week fiscal years consist of thirteen -week periods in the first, second, third, and fourth quarters of the fiscal year. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. Unless indicated otherwise, the information in this Annual Report has been adjusted to give effect to a 321.820 -for-one stock split of the Company’s outstanding common stock, which was approved by the Company's board of directors and shareholders on April 13, 2017 and effected on April 24, 2017. Reclassifications Within the Consolidated Statements of Cash Flows, prior period amounts for “other assets” and “other” have been combined and reclassified to the “other, net” line item to conform to the current period presentation. Cash and Cash Equivalents Cash consists of currency and demand deposits with banks. Receivables Receivables consist primarily of amounts due from credit card companies and receivables from vendors. The Company typically collects its credit card receivables within three to five business days of the underlying sale to the customer. The Company has agreements with a majority of its large merchandise vendors that allow for specified rebates based on purchasing volume. Generally, these agreements are on an annual basis, and the Company collects the rebates subsequent to its fiscal year end. Additionally, the Company has agreements with substantially all vendors that allow for the return of certain merchandise throughout the normal course of business. When inventory is identified to return to a vendor, it is removed from inventory and recorded as a receivable on the Consolidated Balance Sheet, and any variance between capitalized inventory cost associated with the return and the expected vendor reimbursement is expensed in Cost of sales in the Consolidated Statement of Income when the inventory is identified to be returned to the vendor. The Company reserves for estimated uncollected receivables based on historical trends, which historically have been immaterial. The allowance for doubtful accounts as of December 26, 2019 and December 27, 2018, was $266 thousand and $184 thousand, respectively. As of December 26, 2019, receivables also include $19.3 million of expected tariff recoveries (“tariff refunds”) from U.S. Customers and Border Protection (“U.S. Customs”). These receivables relate to a U.S. Trade Representative (“USTR”) ruling on November 7, 2019 to grant exclusions from Section 301 tariffs for select types of flooring products imported from China, including certain “click” vinyl and engineered products that the Company has sold and continues to sell. The Section 301 tariffs from which these goods are now excluded were implemented at 10% beginning in September 2018 and increased to 25% in June 2019. In addition, on November 20, 2019, U.S. Customs issued Chapter 99 exclusions for each unique article number identified under the November 7, 2019 USTR ruling. For the Company, the granted exclusions apply retroactively to tariffs paid beginning in September 2018 through November 2019. While tariff refund claims are subject to the approval of U.S. Customs, the Company currently expects to recover $19.3 million related to Section 301 tariff payments. During the fourth quarter of fiscal 2019, we recognized approximately $14.0 million of operating income (reduction to cost of sales) related to tariff refunds, including $11.0 million for products that had already been sold as of the date U.S. Customs issued Chapter 99 exclusions on November 20, 2019 as well as an additional $3.0 million related to products sold after this date through the end of fiscal 2019. Approximately $5.0 million of the estimated tariff refunds are related to merchandise on hand as of December 26, 2019 and have been recognized as reductions to the carrying cost of inventory. The remaining $0.3 million is related to interest income earned on anticipated tariff recoveries (interest accrues from the date that tariff payments were originally made through the date that such payments are refunded to the Company). All tariff refunds are expected to be received within less than 12 months from the end of fiscal 2019. Credit Program Credit is offered to the Company's customers through a proprietary credit card underwritten by third-party financial institutions and, except as follows, at no recourse to the Company. Beginning in fiscal 2018, the Company began offering limited credit to its commercial clients. The total exposure at the end of fiscal 2019 and fiscal 2018 was $1,045 thousand and $251 thousand, respectively. Inventory Valuation and Shrinkage Inventories consist of merchandise held for sale and are stated at the lower of cost or net realizable value. When evidence exists that the net realizable value of inventory is lower than its cost, the difference is recorded in cost of sales in the Consolidated Statements of Operations and Comprehensive Income as a loss in the period in which it occurs. The Company determines inventory costs using the moving weighted average cost method. The Company capitalizes transportation, duties, and other costs to get product to its retail locations. The Company records reserves for estimated losses related to shrinkage and other amounts that are otherwise not expected to be fully recoverable. These reserves are calculated based on historical shrinkage, selling price, margin, and current business trends. The estimates have calculations that require management to make assumptions based on the current rate of sales, age, salability, and profitability of inventory, historical percentages that can be affected by changes in the Company's merchandising mix, customer preferences, and changes in actual shrinkage trends. These reserves totaled $4,468 thousand and $4,265 thousand as of December 26, 2019 and December 27, 2018, respectively. Physical inventory counts and cycle counts are performed on a regular basis in each store and distribution center to ensure that amounts reflected in the accompanying Consolidated Balance Sheets are properly stated. During the period between physical inventory counts in our stores, the Company accrues for estimated losses related to shrinkage on a store-by-store basis. Shrinkage is the difference between the recorded amount of inventory and the physical inventory. Shrinkage may occur due to theft or loss, among other things. Fixed Assets Fixed assets consist primarily of furniture, fixtures, and equipment, leasehold improvements (including those that are reimbursed by landlords as tenant improvement allowances), computer software and hardware, and land. Fixed assets are stated at cost less accumulated depreciation utilizing the straight-line method over the assets’ estimated useful lives. Leasehold improvements are amortized using the straight-line method over the shorter of (i) the original term of the lease, (ii) renewal term of the lease if the renewal is reasonably certain or (iii) the useful life of the improvement. The Company’s fixed assets are depreciated using the following estimated useful lives: Useful Life Furniture, fixtures and equipment 2 - 7 years Leasehold improvements 10 - 25 years Computer software and hardware 3 - 7 years Land Indefinite The cost and related accumulated depreciation of assets sold or otherwise disposed are removed from the accounts, and the related gain or loss is reported in the Consolidated Statements of Operations and Comprehensive Income. . Capitalized Software Costs The Company capitalizes certain costs related to the acquisition and development of software and amortizes these costs using the straight-line method over the estimated useful life of the software. Certain development costs not meeting the criteria for capitalization are expensed as incurred. Goodwill and Other Indefinite-Lived Intangible Assets Goodwill represents the excess of purchase price over the fair value of net assets acquired. The Company does not amortize goodwill and other intangible assets with indefinite lives resulting from business combinations but, in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350, Intangibles—Goodwill and Other , does assess the recoverability of goodwill annually in the fourth quarter of each fiscal year, or more often if events occur or changes in circumstances indicate that the carrying amount of goodwill may not be recoverable. Such circumstances could include, but are not limited to, a significant adverse change in customer demand or business climate or an adverse action or assessment by a regulator. In accordance with ASC 350, identifiable intangible assets with finite lives are amortized over their estimated useful lives. Each year, the Company may assess qualitative factors to determine whether it is more likely than not that the fair value of the single reporting unit is less than its carrying amount as a basis for determining whether it is necessary to complete quantitative impairment assessments. The Company completed a qualitative assessment in fiscal 2019. Based on such goodwill impairment analysis performed qualitatively as of October 25, 2019, the Company determined that the fair value of its reporting unit is in excess of its carrying value. No events or changes in circumstances have occurred since the date of the Company's most recent annual impairment test that would more likely than not reduce the fair value of the reporting unit below its carrying amount. The Company annually (or more frequently if there are indicators of impairment) evaluates whether its indefinite-lived asset continues to have an indefinite life or have impaired carrying values due to changes in the asset or its related risks. The impairment review is performed by comparing the carrying value of the indefinite-lived intangible asset to its estimated fair value. If the recorded carrying value of the indefinite-lived asset exceeds its estimated fair value, an impairment charge is recorded to write the asset down to its estimated fair value. The estimated lives of the Company’s intangible assets are as follows: Useful Life Trade names Indefinite Vendor relationships 10 The Company’s goodwill and other indefinite-lived intangible assets impairment loss calculations contain uncertainties because they require management to make significant judgments in estimating the fair value of the Company’s reporting unit and indefinite-lived intangible asset, including the projection of future cash flows, assumptions about which market participants are the most comparable, the selection of discount rates, and the weighting of the income and market approaches. These calculations contain uncertainties because they require management to make assumptions such as estimating economic factors, including the profitability of future business operations and, if necessary, the fair value of the reporting unit’s assets and liabilities. Further, the Company’s ability to realize the future cash flows used in its fair value calculations is affected by factors such as changes in economic conditions, changes in the Company’s operating performance, and changes in the Company’s business strategies. Significant changes in any of the assumptions involved in calculating these estimates could affect the estimated fair value of the Company’s reporting unit and indefinite-lived intangible assets and could result in impairment charges in a future period. Long-Lived Assets Long-lived assets, such as fixed assets, operating lease right-of-use assets, and intangible assets with finite lives, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of an asset, significant changes or planned changes in our use of an asset, a product recall, or an adverse action by a regulator. In accordance with ASC 360, the evaluation is performed at the lowest level for which identifiable cash flows are available that are largely independent of the cash flows of other assets or asset groups. If the sum of the estimated undiscounted future cash flows is less than the carrying value of the related asset or asset group, an impairment loss is recognized equal to the difference between carrying value and fair value. Since there is typically no active market for the Company’s definite-lived intangible asset, the Company estimates fair value based on expected future cash flows at the time they are identified. When events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, the Company estimates future cash flows based on store-level historical results, current trends, and operating and cash flow projections. The definite-lived intangible asset is amortized over its estimated useful life on a straight-line basis, which the Company believes to be the amortization methodology that best matches the pattern of economic benefit that is expected from the asset. The useful life of the definite-lived intangible asset is evaluated on an annual basis. Leases The Company recognizes lease assets and corresponding lease liabilities for all operating leases on the balance sheet, excluding short-term leases (leases with terms of 12 months or less) as described under ASU No. 2016-02, “Leases (Topic 842).” The majority of our long-term operating lease agreements include options to extend, which are also factored into the recognition of their respective assets and liabilities when appropriate based on management’s assessment of the probability that the options will be exercised. Lease payments are discounted using the rate implicit in the lease, or, if not readily determinable, a third-party secured incremental borrowing rate based on information available at lease commencement. The secured incremental borrowing rate is estimated based on yields obtained from Bloomberg for U.S. consumers with a BB- credit rating and is adjusted for collateralization as well as inflation. Additionally, certain of our lease agreements include escalating rents over the lease terms which, under Topic 842, results in rent being expensed on a straight-line basis over the life of the lease that commences on the date we have the right to control the property. Self-Insurance Reserves The Company is partially self-insured for workers’ compensation and general liability claims less than certain dollar amounts and maintains insurance coverage with individual and aggregate limits. The Company also has a basket aggregate limit to protect against losses exceeding $10.0 million (subject to adjustment and certain exclusions) for workers' compensation claims and general liability claims. The Company’s liabilities represent estimates of the ultimate cost for claims incurred, including loss adjusting expenses, as of the balance sheet date. The estimated liabilities are not discounted and are established based upon analysis of historical data, actuarial estimates, regulatory requirements, an estimate of claims incurred but not yet reported, and other relevant factors. Management utilizes independent third-party actuarial studies to help assess the liability on a regular basis. Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Asset Retirement Obligations An asset retirement obligation (“ARO”) represents a legal obligation associated with the retirement of a tangible long-lived asset that is incurred upon the acquisition, construction, development or normal operation of that long-lived asset. The Company’s AROs are primarily associated with leasehold improvements that, at the end of a lease, the Company is contractually obligated to remove in order to comply with certain lease agreements. The ARO is recorded in Other long-term liabilities on the Consolidated Balance Sheets and will be subsequently adjusted for changes in fair value. The associated estimated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset and depreciated over its useful life. Changes in (i) inflation rates and (ii) the estimated costs, timing and extent of future store closure activities each result in (a) a current adjustment to the recorded liability and related asset and (b) a change in the liability and asset amounts to be recorded prospectively. Any changes related to the assets are then recognized in accordance with our depreciation policy, which would generally result in depreciation expense being recognized prospectively over the shorter of the remaining lease term or estimated useful life. Fair Value Measurements The Company estimates fair values in accordance with ASC 820, Fair Value Measurement . ASC 820 provides a framework for measuring fair value and requires disclosures about fair value measurements. ASC 820 defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Additionally, ASC 820 defines levels within a hierarchy based upon observable and non-observable inputs. If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the overall fair value measurement of the instrument. ● Level 1: Quoted prices in active markets for identical assets or liabilities as of the reporting date; ● Level 2: Inputs other than quoted prices in active markets for identical assets or liabilities that are either directly or indirectly observable as of the reporting date; and ● Level 3: Unobservable inputs that reflect the reporting entity’s own estimates about the assumptions market participants would use in pricing the asset or liability. Derivative Financial Instruments The Company uses derivative financial instruments to maintain a portion of its long-term debt obligations at a targeted balance of fixed and variable interest rate debt to manage its risk associated with fluctuations in interest rates. We recognize derivative contracts at fair value on the Consolidated Balance Sheets. The fair value is calculated utilizing Level 2 inputs. Unrealized changes in the fair value of hedged derivative instruments are recorded in accumulated other comprehensive (loss) income within the stockholders’ equity section of the Consolidated Balance Sheets. The effective portion of the gain or loss on the derivatives is reported as a component of comprehensive income within the Consolidated Statements of Operations and Comprehensive Income and reclassified into earnings in the same period in which the hedged transaction affects earnings. The effective portion of the derivative represents the change in fair value of the hedge that offsets the change in fair value of the hedged item. To the extent changes in fair values of the instruments are not highly effective, the ineffective portion of the hedge is immediately recognized in earnings. We perform an assessment of the effectiveness of our derivative contracts designated as hedges, including assessing the possibility of counterparty default. If we determine that a derivative is no longer expected to be highly effective, we discontinue hedge accounting prospectively and recognize subsequent changes in the fair value of the hedge in earnings. We believe our derivative contracts, which continue to be designated as cash flow hedges, and which consist of interest rate cap contracts, will continue to be highly effective in offsetting changes in cash flow attributable to floating interest rate risk. See footnote 8. Derivatives and Risk Management for additional information. . Use of Estimates The preparation of the financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales and expenses during the period. Significant items subject to such estimates and assumptions include the carrying amounts of fixed assets and intangibles, asset retirement obligations, allowances for accounts receivable and inventories, reserves for workers' compensation and general liability claims incurred but not reported, and deferred income tax assets and liabilities. Actual results could differ from these estimates. Revenue Recognition As of the beginning of fiscal 2018, we adopted Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers” (“Topic 606”) using the modified retrospective transition method which requires that we recognize revenue differently pre- and post-adoption (see “Recent Accounting Pronouncements” for additional information). We recognize revenue and the related cost of sales when we satisfy the performance obligations in contracts with our customers in accordance with Topic 606. Performance obligations for our retail store sales, as well as for orders placed through our website and shipped to our customers, are satisfied at the . In some cases, merchandise is not physically ready for transfer to the customer at the point-of-sale, and revenue recognition is deferred until the customer has control of the inventory. Shipping and handling activities are accounted for as activities to fulfill the promise to transfer goods rather than as separate performance obligations as outlined within Topic 606. Payment is generally due from the customer immediately at the point-of-sale for both retail store sales and website sales. The nature of the goods offered include hard surface flooring and related accessories. We do not perform installation services, and we offer free design services in-store. The transaction price recognized in revenues represents the selling price of the products offered. Sales taxes collected are not recognized as revenue as these amounts are ultimately remitted to the appropriate taxing authorities. Our customers have the right to return the goods sold to them within a reasonable time period, typically 90 days . The right of return is an element of variable consideration as defined within Topic 606. We reserve for future returns of previously sold goods based on historical experience and various other assumptions that we believe to be reasonable. This reserve reduces sales and cost of sales as well as establishes a return asset and refund liability as defined with Topic 606. The return asset is included within prepaid expenses and other current assets, and the refund liability is included within accrued expenses and other current liabilities, each respectively on the Consolidated Balance Sheets. Merchandise exchanges of similar product and price are not considered merchandise returns and, therefore, are excluded when calculating the sales returns reserve. Gift Cards and Merchandise Credits We sell gift cards to our customers in our stores and through our website and issue merchandise credits in our stores. We account for the programs by recognizing a liability at the time the gift card is sold or the merchandise credit is issued. The liability is relieved and revenue is recognized upon redemption. Additionally, we recognize breakage income in proportion to the pattern of rights exercised by the customer when we expect to be entitled to breakage. Net sales related to the estimated breakage are included in net sales in the Consolidated Statement of Income. We have an agreement with an unrelated third-party who is the issuer of the Company's gift cards and also assumes the liability for unredeemed gift cards. The Company is not subject to claims under unclaimed property statutes, as the agreement effectively transfers the ownership of such unredeemed gift cards and the related future escheatment liability, if any, to the third-party. Gift card breakage is recognized based upon historical redemption patterns and represents the balance of gift cards for which the Company believes the likelihood of redemption by the customer is remote. Accordingly, in fiscal 2019, fiscal 2018, and fiscal 2017 gift card breakage income of $1,197 thousand, $1,584 thousand, and $757 thousand was recognized in net sales in the Consolidated Statements of Operations and Comprehensive Income, respectively, for such unredeemed gift cards. Loyalty Program We completed the roll out of our Pro Premier loyalty program to all stores in the second half of fiscal 2018, which allows customers to earn points through purchases in our stores and our website. Loyalty points are typically awarded at one percent of the relative standalone selling price of the merchandise sold and are recognized at the time of sale as a liability with a corresponding reduction to net sales. loyalty breakage is recognized based on the Company’s estimate of the balance of loyalty points for which the likelihood of redemption by the customer is deemed remote. based on the Company’s historical redemption trends, market benchmarks for the pattern of redemptions for other retail loyalty programs, and other assumptions related to the likelihood of customer redemptions. We are continuously monitoring redemption patterns and will adjust this rate, as necessary, as the program matures. Sales Returns and Allowances The Company accrues for estimated sales returns based on historical results. The allowance for sales returns at December 26, 2019 and December 27, 2018, was $15,437 thousand and $ 8,335 thousand, respectively. Cost of Sales Cost of sales consists of merchandise costs as well as freight, duty, and other costs to transport inventory to our distribution centers and stores. Cost of sales also includes costs for shrinkage, damaged product disposals, distribution, warehousing, sourcing, compliance, and arranging and paying for freight to deliver products to customers. The Company receives cash consideration from certain vendors related to vendor allowances and volume rebates, which is recorded as a reduction to the carrying value of inventory if the inventory is on hand and a reduction to cost of sales when the inventory is sold. Vendor Rebates and Allowances Vendor allowances consist primarily of volume rebates that are earned as a result of attaining certain inventory purchase levels and advertising allowances or incentives for the promotion of vendors' products. These vendor allowances are accrued as earned and are estimated based on annual projections. Vendor allowances earned are initially recorded as a reduction to the carrying value of inventory and a subsequent reduction in cost of sales when the related product is sold. Certain incentive allowances that are reimbursements of specific, incremental, and identifiable costs incurred to promote vendors’ products are recorded as an offset against these promotional expenses. Total Operating Expenses Total operating expenses consist primarily of store and administrative personnel wages and benefits, infrastructure expenses, supplies, fixed asset depreciation, store and corporate facility expenses, pre-opening costs, training costs, and advertising costs. Credit card fees, insurance, personal property taxes, legal expenses, and other miscellaneous operating costs are also included. Advertising Expenses The Company expenses advertising costs as the advertising takes place. Advertising costs incurred during the years ended December 26, 2019, December 27, 2018, and December 28, 2017, were $65,690 thousand, $55,283 thousand, and $43,560 thousand respectively, and are included in selling and store operating expenses and pre-opening expenses in the accompanying Consolidated Statements of Operations and Comprehensive Income. Pre-Opening Expenses The Company accounts for non-capital operating expenditures incurred prior to opening a new store as "pre-opening" expenses in its Consolidated Statements of Operations and Comprehensive Income. The Company's pre-opening expenses begin on average three to six months in advance of a store opening or relocating due to, among other things, the amount of time it takes to prepare a store for its grand opening. Pre-opening expenses primarily include: advertising, rent, staff training, staff recruiting, utilities, personnel, and equipment rental. A store is considered to be relocated if it is closed temporarily and re-opened within the same primary trade area. Pre-opening expenses for the years ended December 26, 2019, December 27, 2018, and December 28, 2017, totaled $24,594 thousand, $26,145 thousand, and $16,485 thousand, respectively. Loss on Early Extinguishment of Debt On May 2, 2017, the Company completed its initial public offering (“IPO”), pursuant to which it sold an aggregate of 10,147,025 shares of Class A common stock, par value $0.001 per share. The Company received aggregate net proceeds of approximately $192.0 million after deducting underwriting discounts and commissions and other offering expenses. The Company used net proceeds from the IPO of approximately $192.0 million to repay a portion of the amounts outstanding under the Term Loan Facility, including accrued and unpaid interest. The partial paydown resulted in a loss on extinguishment of debt in the amount of approximately $5.4 million related to unamortized original issue discount and unamortized deferred debt issuance costs. Stock-Based Compensation The Company accounts for employee stock options, restricted stock, and employee stock purchase plans in accordance with ASC 718, Compensation – Stock Compensation . The Company obtains independent third-party valuation studies to assist with determining the grant date fair value of our stock price. Stock options are granted with exercise prices equal to or greater than the fair market value on the date of grant as authorized by the board of directors or compensation committee. Options granted have vesting provisions ranging from one to five years . Stock option grants are generally subject to forfeiture if employment terminates prior to vesting. The Company has selected the Black-Scholes option pricing model for estimating the grant date fair value of stock option awards granted. The Company bases the risk-free interest rate on the yield of a zero coupon U.S. Treasury security with a maturity equal to the expected life of the option from the date of the grant. The Company estimates the dividend yield to be zero as the Company does not intend to pay dividends in the future. The Company estimates the volatility of the share price of its common stock by considering the historical volatility of the stock of similar public entiti |
Revenues
Revenues | 12 Months Ended |
Dec. 26, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | 2. Revenues Net sales consist of revenue associated with contracts with customers for the sale of goods in amounts that reflect the consideration the Company is entitled to receive in exchange for those goods and services. Deferred Revenue Under Topic 606, the Company recognizes revenue when the customer obtains control of the inventory. Amounts in deferred revenue at period-end reflect orders for which the inventory is not currently ready for physical transfer to the customer. Gift Card Breakage Under Topic 606, gift card breakage income is recognized in proportion to the pattern of rights exercised by the customer when the Company expects to be entitled to breakage. The amount of revenue related to gift card breakage income for the fiscal year ended December 26, 2019 was immaterial to the consolidated financial statements. Disaggregated Revenue The Company has one operating segment and one reportable segment. The following table presents the net sales of each major product category for each of the last three fiscal years (in thousands): Fiscal Year Ended December 26, 2019 December 27, 2018 December 28, 2017 % of % of % of Product Category Net Sales Net Sales Net Sales Net Sales Net Sales Net Sales Tile $ 523,076 26 % $ 476,337 27 % $ 419,745 30 % Laminate / luxury vinyl plank 442,171 22 316,109 18 208,238 15 Decorative accessories/ wall tile 393,908 19 325,139 19 257,684 19 Installation materials and tools 346,356 17 272,994 16 217,427 16 Wood 202,888 10 192,087 12 167,152 12 Natural stone 127,975 6 113,565 7 104,670 8 Other (1) 9,082 — 13,617 1 9,851 — Total $ 2,045,456 100 % $ 1,709,848 100 % $ 1,384,767 100 % (1) Other includes delivery revenue less adjustments for deferred revenue, sales return reserves, rewards under our Pro Premier Loyalty program, and other revenue related adjustments that are not allocated on a product-level basis. . |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 26, 2019 | |
Accrued Expenses | |
Accrued Expenses and Other Current Liabilities | 3. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following (in thousands): December 26, December 27, 2019 2018 Accrued incentive compensation $ 18,635 $ 12,473 Sales tax payable 14,304 12,046 Accrued construction in progress new stores 10,043 9,421 Insurance reserve incurred but not reported 9,399 8,229 Wages and payroll tax payable 8,328 6,936 Loyalty program liability 6,649 2,274 Other 35,449 30,659 Accrued expenses and other current liabilities $ 102,807 $ 82,038 |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 26, 2019 | |
Fixed Assets | |
Fixed Assets | 4. Fixed Assets Fixed assets as of December 26, 2019 and December 27, 2018, consisted of the following (in thousands): December 26, December 27, 2019 2018 Furniture, fixtures and equipment $ 236,555 $ 174,663 Leasehold improvements 321,334 216,461 Computer software and hardware 113,975 83,628 Land 8,715 5,297 Fixed assets, at cost 680,579 480,049 Less: accumulated depreciation and amortization 224,290 151,683 Fixed assets, net $ 456,289 $ 328,366 Depreciation and amortization on fixed assets for the years ended December 26, 2019, December 27, 2018, and December 28, 2017, were $69,856 thousand, $50,478 thousand, and $36,255 thousand, respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 26, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 5. Intangible Assets The following summarizes the balances of identifiable intangible assets as of December 26, 2019 and December 27, 2018 (in thousands): December 26, 2019 December 27, 2018 Gross Gross Estimated Carrying Accumulated Carrying Accumulated Useful Lives Amount Amortization Amount Amortization Amortizable intangible asset: Vendor relationships 10 years $ 319 $ (289) $ 319 $ (258) Indefinite-lived intangible asset: Trade names 109,269 — 109,269 — Total $ 109,588 $ (289) $ 109,588 $ (258) Amortization expense related to amortizable intangible assets for the years ended December 26, 2019, December 27, 2018 and December 28, 2017, was $31 thousand, $32 thousand, and $32 thousand, respectively. Estimated intangible asset amortization for vendor relationships is $30 thousand for fiscal 2020, after which the asset will be fully amortized. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 26, 2019 | |
Income Taxes | |
Income Taxes | 6. Income Taxes The components of the provision for income taxes are as follows (in thousands) Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended December 26, December 27, December 28, 2019 2018 2017 Current expense / (benefit): Federal $ 7,975 $ 5,496 $ (4,097) State 2,358 1,669 479 Total current expense / benefit 10,333 7,165 (3,618) Deferred expense / (benefit): Federal (6,522) 922 (250) State (4,062) (1,890) (368) Total deferred (benefit) / expense (10,584) (968) (618) Provision for income taxes $ (251) $ 6,197 $ (4,236) The following is a summary of the differences between the total provision for income taxes as shown on the financial statements and the provision for income taxes that would result from applying the federal statutory tax rate of 21% for the years ended December 26, 2019 and December 27, 2018 (35% for the year ended December 28, 2017) to income before income taxes (in thousands) Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended December 26, December 27, December 28, 2019 2018 2017 Computed “expected” provision at statutory rate $ 31,580 $ 25,700 $ 34,499 State income taxes, net of federal income tax benefit (1,364) (627) (28) Permanent differences: Excess tax benefit related to options exercised (29,441) (17,478) (20,762) Non-qualified option holder dividend equivalent — — — Other 543 457 691 Total permanent differences (28,898) (17,021) (20,071) Change in U.S. tax rate — (573) (17,850) Provision to return (282) (739) (63) Federal tax credits (1,306) (685) (577) Other, net 19 142 (146) Provision for income taxes $ (251) $ 6,197 $ (4,236) The permanent differences of $29,441 thousand, $17,478 thousand, and $20,762 thousand in fiscal 2019, fiscal 2018, and fiscal 2017, respectively, are the federal benefits due to the recognition of excess tax deductions for stock options exercised. In the table above, the 2019, 2018, and 2017 state benefits related to the recognition of excess tax benefits of $5.6 million, $3.3 million, and $1.0 million, respectively, are included in state income taxes, net of federal income tax benefit. The Tax Cuts and Jobs Act (the “Act “), which was enacted on December 22, 2017, reduced the U.S. federal corporate income tax rate from 35% to 21% and created new taxes that may apply on certain foreign sourced earnings. In fiscal 2017 and the first nine months of fiscal 2018, we recorded provisional amounts for certain enactment-date effects of the Act by applying the guidance in Staff Accounting Bulletin No. 118 (“SAB 118”). As of December 28, 2017, we remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%, and recorded a provisional amount of $17.9 million. Upon further analysis of certain aspects of the Act and refinement of our calculations prior to the end of the measurement period and during the twelve months ended December 27, 2018, we completed our accounting for all the enactment-date income tax effects of the Act and adjusted our provisional amount by an additional $600 thousand, which was included as a component of income tax expense from continuous operations. The changes to 2017 enactment-date provisional amounts decreased the effective tax rate for the year ended December 27, 2018 by 0.47%. The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and (liabilities) are presented below (in thousands): Fiscal Year Ended Year Ended December 26, December 27, 2019 2018 Deferred tax assets: Accruals not currently deductible for tax purposes $ 2,820 $ 13,338 Tenant improvement allowances — 9,239 Inventories 5,283 3,948 Stock based compensation 3,984 3,684 Other intangibles 313 361 Gift card liability 453 242 Litigation accrual 139 172 Lease liabilities 233,106 — Other 3,718 2,858 Total deferred tax assets 249,816 33,842 Deferred tax liabilities: Intangible assets (26,939) (27,023) Fixed assets (35,576) (30,681) Right-of-use assets (203,028) — Other (2,651) (2,976) Total deferred tax liabilities (268,194) (60,680) Net deferred tax liabilities $ (18,378) $ (26,838) The Company generated $719 thousand and $776 thousand of tax-effected state net operating losses in fiscal 2019 and fiscal 2018, respectively; as of December 26, 2019, approximately $2.8 million of tax-effected state net operating losses were available to reduce future income taxes. The state net operating losses expire in various amounts beginning in 2032. In assessing the realization of deferred tax assets, including net operating losses, management considered whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers taxable income in prior carryback periods, future reversals of existing taxable temporary differences, tax planning strategies, and future taxable income exclusive of reversing temporary differences and carryforwards in making this assessment, and accordingly, has concluded that no valuation allowance is necessary as of December 26, 2019 or December 27, 2018. The Company files income tax returns with the U.S. Federal government and various state jurisdictions. Prior tax years beginning in year 2016 remain open to examination by the Internal Revenue Service (“IRS”). We are currently under federal audit by the IRS for the 2017 tax year. Unrecognized tax benefits were $0.4 million as of December 26, 2019, and there were no unrecognized tax benefits as of December 27, 2018 and December 28, 2017 that if recognized, would affect the effective tax rate in future periods. The Company's policy is to classify interest and penalties related to unrecognized tax benefits in income tax expense. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 26, 2019 | |
Fair Value Measurements | |
Fair Value Measurements | 7. Fair Value Measurements We measured certain financial assets and financial liabilities at fair value on a recurring basis as follows for the periods presented. As of December 26, (in thousands) 2019 Level 1 Level 2 Level 3 Designated as hedges: Interest rate cap (cash flow hedge) $ 20 $ — $ 20 $ — Not designated as hedges: Interest rate cap $ — $ — $ — $ — As of December 27, (in thousands) 2018 Level 1 Level 2 Level 3 Designated as hedges: Interest rate cap (cash flow hedge) $ 1,076 $ — $ 1,076 $ — Not designated as hedges: Interest rate cap $ 1,075 $ — $ 1,075 $ — Our derivative contracts are negotiated with counterparties without going through a public exchange. Accordingly, our fair value assessments give consideration to the risk of counterparty default (as well as our own credit risk). Our interest rate derivatives consist of interest rate cap contracts and are valued primarily based on data readily observable in public markets. See Note 1, “Summary of Significant Accounting Policies” and Note 5, “Intangible Assets” for a discussion of the valuation of goodwill and intangible assets, respectively. See Note 10, “Debt” for discussion of the fair value of the Company’s debt. The estimated fair values of other financial assets and liabilities including cash and cash equivalents, receivables, prepaid expenses and other current assets, other assets, accounts payable, and accrued expenses and other current liabilities approximate their respective fair values as reported within the Consolidated Balance Sheets. |
Derivatives and Risk Management
Derivatives and Risk Management | 12 Months Ended |
Dec. 26, 2019 | |
Derivatives and Risk Management | |
Derivatives and Risk Management | 8. Derivatives and Risk Management Changes in interest rates impact our results of operations. In an effort to manage our exposure to this risk, we enter into derivative contracts and may adjust our derivative portfolio as market conditions change. Designated as Cash Flow Hedge For derivative contracts designated as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of Accumulated Other Comprehensive Income (“AOCI”) and reclassified into earnings in the same period in which the hedged transaction affects earnings. The effective portion of the derivative represents the change in fair value of the hedge that offsets the change in fair value of the hedged item. To the extent the change in the fair value of the hedge does not perfectly offset the change in the fair value of the hedged item, the ineffective portion of the hedge is immediately recognized in earnings. Not Designated as Accounting Hedge For derivative contracts de-designated as accounting hedges, the change in the fair value is reflected through earnings. These changes in fair value are mark-to-market adjustments (“MTM adjustments”). MTM adjustments are defined as fair value changes recorded in periods other than the settlement period. Such fair value changes are not necessarily indicative of the actual settlement value of the underlying hedge in the contract settlement period. The AOCI related to the interest rate cap prior to the de-designation is being amortized over the remaining maturity period. Derivative Position as of December 26, 2019: Final Maturity Other AOCI, Net (in thousands) Notional Balance Date Assets of Tax Designated as hedges: Interest rate cap (cash flow hedge) $ 102,500 U.S. dollars December 2021 $ 20 $ 236 Not designated as hedges: Interest rate cap $ 102,500 U.S. dollars December 2021 $ — $ (43) Derivative Position as of December 27, 2018: Final Maturity Other AOCI, Net (in thousands) Notional Balance Date Assets of Tax Designated as hedges: Interest rate cap (cash flow hedge) $ 102,500 U.S. dollars December 2021 $ 1,076 $ 177 Not designated as hedges: Interest rate cap $ 102,500 U.S. dollars December 2021 $ 1,075 $ 9 Designated Hedge Gain (Losses) Gains (losses) related to our designated hedge contracts are as follows: Effective Portion Reclassified Effective Portion Recognized in From AOCI to Earnings Other Comprehensive Income (Loss) Fiscal Year Ended Fiscal Year Ended December 26, December 27, December 28, December 26, December 27, December 28, (in thousands) 2019 2018 2017 2019 2018 2017 Interest rate cap (cash flow hedge) $ — $ — $ — $ (379) $ 391 $ (381) Interest rate swaps (cash flow hedges) $ — $ — $ — $ — $ — $ — Interest Rate Risk Our exposure to market risk from adverse changes in interest rates is primarily associated with our long-term debt obligations, which carry variable interest rates. Market risk associated with our variable interest rate long-term debt relates to the potential reduction in fair value and negative impact to future earnings, respectively, from an increase in interest rates. In an effort to manage our exposure to the risk associated with our variable interest rate long term debt, we periodically enter into interest rate derivative contracts. We designate interest rate derivative contracts used to convert the interest rate exposure on a portion of our debt portfolio from a floating rate to a capped rate as cash flow hedges. Credit Risk To manage credit risk associated with our interest rate hedging program, we select counterparties based on their credit ratings and limit our exposure to any one counterparty. The counterparties to our derivative contracts are financial institutions with investment grade credit ratings. To manage our credit risk related to our derivative financial instruments, we periodically monitor the credit risk of our counterparties, limit our exposure in the aggregate and to any single counterparty, and adjust our hedging position, as appropriate. The impact of credit risk, as well as the ability of each party to fulfill its obligations under our derivative financial instruments, is considered in determining the fair value of the contracts. Credit risk has not had a significant effect on the fair value of our derivative contracts. We do not have any credit risk-related contingent features or collateral requirements with our derivative financial instruments. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 26, 2019 | |
Commitments and Contingencies. | |
Commitments and Contingencies | 9. Commitments and Contingencies Lease Commitments In the first quarter of fiscal 2019, we adopted ASU No. 2016-02, “Leases (Topic 842),” which requires that lessees recognize lease assets and lease liabilities for all leases on the balance sheet with an option to exclude short-term leases (leases with terms of 12 months or less), which we elected. We adopted ASU No. 2016-02 using the modified retrospective approach and elected the package of practical expedients nonlease components The majority of our long-term operating lease agreements are for our corporate office, retail locations, and distribution centers, which expire in various years through 2040. The initial lease terms for these facilities range from 10 -15 20-year When readily determinable, the rate implicit in the lease is used to discount lease payments to present value; however, substantially all of our leases do not provide a readily determinable implicit rate. If the rate implicit in the lease is not readily determinable, we use a third party to assist in the determination of a secured incremental borrowing rate, determined on a collateralized basis, to discount lease payments based on information available at lease commencement. The secured incremental borrowing rate is estimated based on yields obtained from Bloomberg for U.S. consumers with a BB- credit rating and is adjusted for collateralization as well as inflation. Lease Position The table below presents supplemental balance sheet information related to operating leases. As of in thousands, except lease term and discount rate Classification December 26, 2019 Assets Building Right-of-use assets $ 808,989 Equipment Right-of-use assets 7,322 Land Right-of-use assets 2,378 Software Right-of-use assets 3,567 Total operating lease assets $ 822,256 Liabilities Current Building Current portion of lease liabilities $ 67,500 Equipment Current portion of lease liabilities 3,758 Land Current portion of lease liabilities 170 Software Current portion of lease liabilities 3,164 Total current operating lease liabilities 74,592 Noncurrent Building Lease liabilities 837,510 Equipment Lease liabilities 3,902 Land Lease liabilities 2,357 Software Lease liabilities 500 Total noncurrent operating lease liabilities 844,269 Total operating lease liabilities $ 918,861 Weighted-average remaining lease term 10 years Weighted-average discount rate 5.3% Lease Costs The table below presents components of lease expense for operating leases. Fiscal Year Ended in thousands Classification December 26, 2019 Operating lease cost (1) Selling and store operating $ 116,623 Sublease income Selling and store operating (2,414) Total lease cost $ 114,209 (1) Includes variable lease costs, which are immaterial. Undiscounted Cash Flows Future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) as of December 26, 2019, were: in thousands Amount 2020 $ 122,303 2021 127,449 2022 120,091 2023 116,505 2024 113,019 Thereafter 622,954 Total minimum lease payments (2) $ 1,222,321 Less: amount of lease payments representing interest 303,460 Present value of future minimum lease payments 918,861 Less: current obligations under leases 74,592 Long-term lease obligations $ 844,269 (2) Future lease payments exclude approximately $165.8 million of legally binding minimum lease payments for operating leases signed but not yet commenced. For the year ended December 26, 2019, cash paid for operating leases was $112.8 million. Right-of-Use Asset Impairment and Write Off During the third quarter of fiscal 2019, we began the move from our former store support center in Smyrna, Georgia to a nearby location in Atlanta, Georgia. Prior to this period, we expected to fully cover future payments under the operating lease agreement with proceeds from a sublease. As of the end of our fiscal third quarter, we no longer expected to find a sublease tenant that would fully cover these future payments and concluded that the right-of-use asset related to the operating lease was not recoverable. Therefore, we determined the fair value of the right-of-use asset based on a discounted cash flow analysis reflective of the income expected from a sublease. Based on the excess of the asset’s carrying value over fair value, we recognized an impairment of $4.1 million in the third quarter of fiscal 2019 in general and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income. In addition, during the fourth quarter of fiscal 2019, we completed the move to our new location and terminated the lease for our previous store support center facility in Smyrna, Georgia. As a result, we recognized a loss of $1.9 million related to the settlement of our remaining obligations under the lease and the write off of the remaining right-of-use asset for the facility upon lease termination. This loss was recognized in general and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income. Litigation On May 20, 2019, an alleged stockholder of the Company filed a putative class action lawsuit, Taylor v. Floor & Decor Holdings, Inc., et al., No. 1:19-cv-02270-SCJ (N.D. Ga.), in the United States District Court for the Northern District of Georgia against the Company and certain of our officers, directors and stockholders. On August 14, 2019, the Court named a lead plaintiff, and the case was re-captioned In re Floor & Decor Holdings, Inc. Securities Litigation, No. 1:19-cv-02270-SCJ (N.D. Ga.). The operative complaint alleges certain violations of federal securities laws based on, among other things, purported materially false and misleading statements and omissions allegedly made by the Company between May 23, 2018 and August 1, 2018 and seeks class certification, unspecified monetary damages, costs and attorneys’ fees and equitable relief. The Company denies the material allegations in this lawsuit, which is in the early stages and has not yet been certified as a class, and intends to defend itself vigorously. In addition, the Company maintains insurance that may cover any liability arising out of this litigation up to the policy limits and subject to meeting certain deductibles and to other terms and conditions thereof. Estimating an amount or range of possible losses resulting from litigation proceedings is inherently difficult, particularly where the matters involve indeterminate claims for monetary damages and are in the stages of the proceedings where key factual and legal issues have not been resolved. For these reasons, we are currently unable to predict the ultimate timing or outcome of or reasonably estimate the possible losses or a range of possible losses resulting from this litigation. We are also subject to various other legal actions, claims and proceedings arising in the ordinary course of business, which may include claims related to general liability, workers’ compensation, product liability, intellectual property and employment-related matters resulting from our business activities. As with most actions such as these, an estimation of any possible and/or ultimate liability cannot always be determined. We establish reserves for specific legal proceedings when we determine that the likelihood of an unfavorable outcome is probable and the amount of loss can be reasonably estimated. These various other ordinary course proceedings are not expected to have a material impact on our consolidated financial position, cash flows, or results of operations, however regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources, and other factors. |
Debt
Debt | 12 Months Ended |
Dec. 26, 2019 | |
Debt | |
Debt | 10. Debt The following table summarizes our long-term debt as of December 26, 2019 (dollars in thousands): Interest Rate Per Annum at Maturity December 26, December 26, December 27, Date 2019 2019 2018 Credit Facilities: UBS Facility Term Loan B September 30, 2023 4.77 % Variable $ 145,500 $ 149,000 Wells Facility Revolving Line of Credit September 30, 2021 4.25 % Variable — — Total secured debt 145,500 149,000 Less: current maturities — 3,500 Long-term debt maturities 145,500 145,500 Less: unamortized discount and debt issuance costs 2,894 3,666 Total long-term debt $ 142,606 $ 141,834 Repayment of Debt with Proceeds from Initial Public Offering On May 2, 2017, the Company completed its initial public offering (“IPO”), pursuant to which it sold an aggregate of 10,147,025 shares of Class A common stock, par value $0.001 per share (after giving effect to the underwriters’ exercise in full of their option to purchase additional shares) at a price of $21.00 per share. The Company received aggregate net proceeds of approximately $192.0 million after deducting underwriting discounts and commissions and other offering expenses. The Company used net proceeds from the IPO of approximately $192.0 million to repay a portion of the amounts outstanding under the Term Loan Facility, including accrued and unpaid interest. The partial paydown resulted in a loss on extinguishment of debt in the amount of approximately $5.4 million related to unamortized original issue discount and unamortized deferred debt issuance costs. Term Loan Facility As of December 26, 2019, the Term Loan Facility had an outstanding balance of $145.5 million, all due and payable at maturity. The Term Loan Facility matures on September 30, 2023. As of December 26, 2019, the Term Loan Facility bore interest based on one of the following rates, at the Company’s option: i) Adjusted LIBOR Rate plus a margin of 2.50% ii) Base Rate plus a margin of 1.50%. Base Rate defined as the greater of the following: (a) the base rate in effect on such day, (b) the federal funds rate plus 0.50%, (c) the adjusted LIBOR rate for the interest period of one month plus a margin of 1.00% ABL Facility As of December 26, 2019, the ABL Facility had a maximum availability of $300.0 million with actual available borrowings limited to the sum, at the time of calculation, of eligible credit card receivables, plus the cost of eligible inventory, net of inventory reserves, multiplied by the product of an appraisal percentage multiplied by the appraised value of eligible inventory, plus 85% of eligible net trade receivables, plus all eligible cash on hand minus certain Availability Reserves (as defined in the credit agreement governing the ABL Facility). The ABL Facility is available for issuance of letters of credit and contains $30.0 million for standby letters of credit and commercial letters of credit. Available borrowings under the facility are reduced by the face amount of outstanding letters of credit. The ABL Facility matures on September 30, 2021. As of December 26, 2019, the borrowings bear interest at a floating rate, which is based on one of the following rates at the option of the Company: i) LIBOR Rate plus a margin percentage ranging from 1.25% to 1.50% based on the level of borrowings or ii) Base Rate plus a margin (ranging from 0.25% to 0.50% based on the level of borrowings). The Base Rate is defined as the highest of the following: (a) the federal funds rate plus 0.50%, (b) Adjusted LIBOR Rate plus 1.00%, or (c) the lender’s prime rate As of December 26, 2019, the Company had net availability under the ABL Facility of $279,488 thousand, including outstanding letters of credit of $20,512 thousand. The total minimum debt payment of $145,500 thousand is due at maturity in 2023. Covenants The credit agreements governing our Credit Facilities contain customary restrictive covenants that, among other things and with certain exceptions, limit the ability of the Company to (i) incur additional indebtedness and liens in connection with such indebtedness; (ii) pay dividends and make certain other restricted payments; (iii) effect mergers or consolidations; (iv) enter into transactions with affiliates; (v) sell or dispose of property or assets and (vi) engage in unrelated lines of business. In addition, these credit agreements subject us to certain reporting obligations and require that we satisfy certain financial covenants, including, among other things: • a requirement that if borrowings under the ABL Facility exceed 90% of availability, we will maintain a certain fixed charge coverage ratio (defined as consolidated EBITDA less non-financed capital expenditures and income taxes paid to consolidated fixed charges, in each case as more fully defined in the credit agreement governing the ABL Facility). The Term Loan Facility has no financial maintenance covenants. As of December 26, 2019, we were in compliance with the covenants of the Credit Facilities. Deferred Debt Issuance Cost and Original Issue Discount Deferred debt issuance cost related to our ABL Facility and our prior asset-based revolving credit facility of $574 thousand and $902 thousand as of December 26, 2019 and December 27, 2018, respectively, are included in other assets on our Consolidated Balance Sheets. Deferred debt issuance cost and original issue discount related to our Term Loan Facility of $2,894 thousand and $3,666 thousand as of December 26, 2019 and December 27, 2018, respectively, are included in term loans on our Consolidated Balance Sheets. Amortization expense was $1,100 thousand, $1,045 thousand, and $1,205 thousand for the years ended December 26, 2019, December 27, 2018, and December 28, 2017, respectively. Fair Value of Debt The fair values of certain of the Company’s debt instruments have been determined by utilizing Level 3 inputs, such as available market information and appropriate valuation methodologies, including the rates for similar instruments and the discounted cash flows methodology. December 26, December 27, in thousands 2019 2018 Total debt at par value $ 145,500 $ 149,000 Less: unamortized discount and debt issuance costs 2,894 3,666 Net carrying amount $ 142,606 $ 145,334 Fair value $ 145,136 $ 147,883 |
Stockholder's Equity
Stockholder's Equity | 12 Months Ended |
Dec. 26, 2019 | |
Stockholders' Equity | |
Stockholders' Equity | 11. Stockholders’ Equity Common Stock The Company has three classes of common stock: Class A, Class B, and Class C. The holders of Class A common stock, Class B common stock, and Class C common stock are entitled to share equally, on a per share basis, in dividends or other distributions. Class A common stockholders are entitled to one vote per share held. Class B and Class C common stockholders have no voting rights, except as otherwise provided by law. In the event of the voluntary liquidation or dissolution of the Company, each class of stock will share equally, on a per share basis, in all the assets of the Company that are available for distribution to stockholders. Conversion Features On May 2, 2017, all of the Class B common stock outstanding shares were converted to Class A common stock upon completion of the Company’s initial public offering. On July 26, 2017, all of the outstanding shares of Class C common stock were converted to Class A common stock. Stock Incentive Plans On January 13, 2011, the Company adopted the 2011 Stock Option Plan (as amended, restated, supplemented or otherwise modified from time to time, the “2011 Plan”) to provide for the grant of stock options to employees (including officers), consultants and non-employee directors of the Company and its subsidiaries. Pursuant to the terms of the 2011 Plan, the Company was authorized to grant options for the purchase of up to 12,520,407 shares as of December 29, 2016 and 10,780,970 shares as of December 31, 2015. As of December 29, 2016 and December 31, 2015, there were 179,575 and 104,269 shares available for grant pursuant to awards under the 2011 Plan, respectively. We ceased granting awards under the 2011 Plan upon the implementation of the 2017 Plan, described below. On April 13, 2017, the board of directors approved the Floor & Decor Holdings, Inc. 2017 Stock Incentive Plan (the “2017 Plan”), which was subsequently approved by the Company’s stockholders. The 2017 Plan authorizes the Company to grant options and restricted stock awards to eligible employees , consultants, and non-employee directors In connection with the IPO, the Company granted options to purchase an aggregate of 1,254,465 shares of our Class A common stock to certain of our eligible employees and 15,475 shares of restricted stock to certain of our non-employee directors, in each case pursuant to the 2017 Plan and based on the public offering price of $21.00 per share. As of December 26, 2019 and December 27, 2018, there were 2,806,549 and 2,850,768 shares available for grant pursuant to awards under the 2017 Plan, respectively. Secondary Offerings On July 25, 2017, certain of the Company’s stockholders completed a secondary public offering (the “July Secondary Offering”) of an aggregate of 10,718,550 shares of common stock at a price to the public of $40.00 per share. The Company did not sell any shares in the July Secondary Offering and did not receive any proceeds from the sales of shares by the selling stockholders. On November 20, 2017, certain of the Company’s stockholders completed a secondary public offering (the “November Secondary Offering”) of an aggregate of 7,475,000 shares of common stock at a price to the public of $36.00 per share. The Company did not sell any shares in the November Secondary Offering and did not receive any proceeds from the sales of shares by the selling stockholders. On May 29, 2018, certain of the Company’s stockholders completed a secondary public offering (the “May Secondary Offering”) of an aggregate of 10,000,000 shares of common stock at a price to the public of $45.80 per share. The Company did not sell any shares in the May Secondary Offering and did not receive any proceeds from the sales of shares by the selling stockholders. On September 14, 2018, certain of the Company’s stockholders completed a secondary public offering (the “September Secondary Offering”) of an aggregate of 11,500,000 shares of common stock at a price to the public of $37.25 per share. The Company did not sell any shares in the September Secondary Offering and did not receive any proceeds from the sales of shares by the selling stockholders. On February 28, 2019, certain of the Company’s certain of the Company’s stockholders completed a secondary public offering (the “February Secondary Offering”) of an aggregate of 10,000,000 shares of common stock at a price to the public of $37.50 per share. The Company did not sell any shares in the February Secondary Offering and did not receive any proceeds from the sales of shares by the selling stockholders. Stock Options The Company accounts for stock-based compensation pursuant to ASC 718, Compensation – Stock Compensation Stock options are granted with an exercise price greater than or equal to the fair market value on the date of grant, as authorized by the Company’s board of directors or compensation committee. Options granted have vesting provisions ranging from one The fair value of stock option awards granted was estimated using the Black-Scholes pricing model with the following weighted-average assumptions: Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended December 26, December 27, December 28, 2019 2018 2017 Risk-free interest rate 2.06 % 3.05 % 2.06 % Expected volatility 45 % 42 % 39 % Expected life (in years) 6.68 6.29 6.50 Dividend yield — % — % — % The Company estimates the volatility of the share price of its common stock by considering the historical volatility of the stock of similar public entities. In determining the appropriateness of the public entities included in the volatility assumption, the Company considered a number of factors, including the entity’s life cycle stage, growth profile, size, financial leverage, and products offered. The table below summarizes the changes in stock options for the following periods: Weighted Weighted Average Fair Weighted Options Average Value/Share of Average Exercisable Exercise Price Options Exercise at End of Exercisable Granted During Options Price of Year Options the Year Outstanding at December 29, 2016 11,979,111 $ 5.34 8,151,056 $ 4.20 $ — Granted 1,339,668 21.68 — — 9.20 Exercised (1,828,339) 4.85 — — — Forfeited or expired (236,354) 9.17 — — — Outstanding at December 28, 2017 11,254,086 7.28 7,448,532 4.52 — Granted 926,775 34.07 — — 15.63 Exercised (2,069,195) 5.09 — — — Forfeited or expired (258,838) 13.12 — — — Outstanding at December 27, 2018 9,852,828 10.11 6,409,257 5.21 — Granted 157,904 42.42 — — 20.38 Exercised (3,740,749) 5.03 — — — Forfeited or expired (232,904) 21.97 — — — Outstanding at December 26, 2019 6,037,079 $ 13.64 3,673,657 $ 8.25 $ — The intrinsic value for stock options is defined as the difference between the exercise price and the value of the Company’s common stock (on a minority, non-marketable basis). The per share value of the Company’s common stock as of December 26, 2019, was $50.30. The intrinsic value of stock options exercised was $146,625 thousand and $87,151 thousand for the years ended December 26, 2019 and December 27, 2018, respectively. The aggregate intrinsic value of stock options outstanding as of December 26, 2019, was $221,303 thousand with a weighted-average remaining contractual life of 5.4 years. The aggregate intrinsic value of stock options exercisable as of December 26, 2019, was $154,483 thousand with a weighted-average remaining contractual life of 4.0 years. The Company’s total unrecognized compensation cost related to stock options as of December 26, 2019, was $19,126 thousand, which is expected to be recognized over a weighted average period of 2.7 years. Restricted Stock During fiscal 2019, we granted 24,207 shares of restricted stock to an executive employee. Restricted stock granted have vesting provisions of 25% on the third anniversary of the grant date and 75% on the fourth anniversary of the grant date, and the aggregate fair value of restricted stock outstanding as of December 26, 2019 was $1,863 thousand. As of December 26, 2019, there were 37,032 shares of restricted stock outstanding. The Company’s total unrecognized compensation cost related to restricted stock as of December 26, 2019, was $1,093 thousand, which is expected to be recognized over a weighted average period of 2.9 years. During fiscal 2018, we granted 10,165 shares of restricted stock to certain of our non-employee directors. Restricted stock granted have vesting provisions ranging from two to four years , and the aggregate fair value of restricted stock outstanding as of December 27, 2018, was $566 thousand. As of December 27, 2018, there were 21,775 shares of restricted stock outstanding. The Company’s total unrecognized compensation cost related to restricted stock as of December 27, 2018, was $489 thousand, which is expected to be recognized over a weighted average period of 2.0 years. During fiscal 2017, we granted 15,475 shares of restricted stock to certain of our non-employee directors. Employee Stock Purchase Plan At our 2018 annual meeting of stockholders held on May 17, 2018, our stockholders approved the Floor & Decor Holdings, Inc. Employee Stock Purchase Plan (the “ESPP”), which became available to substantially all of our employees beginning in the third quarter of fiscal 2018. The ESPP is a tax-qualified plan under Section 423 of the Internal Revenue Code, and it permits eligible employees to purchase shares of our common stock through payroll deductions, subject to certain limitations. The Company has designated a purchase price per share of common stock acquired under the ESPP at the lesser of 90% of the lower of the fair market value of our common stock on either the first or last trading day of each six Deferred Compensation Plan In October 2019, the Company adopted the 2019 Director Nonqualified Excess Plan (the “Plan”) to provide for certain employees or independent contractors of the employer (including directors) to elect to defer compensation, including restricted stock grants, until they separate from service. The Plan is intended to be a nonqualified deferred compensation plan that complies with the provisions of Section 409A of the Internal Revenue Code and is effective for compensation starting in fiscal 2020. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 26, 2019 | |
Earnings Per Share | |
Earnings Per Share | 12. Earnings Per Share Net Income per Common Share We calculate basic earnings per share by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding adjusted for the dilutive effect of stock options. The following table shows the computation of basic and diluted earnings per share for the periods presented: Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended December 26, December 27, December 28, in thousands, except per share data 2019 2018 2017 Net income $ 150,631 $ 116,187 $ 102,788 Basic weighted average shares outstanding 99,435 96,770 90,951 Dilutive effect of share based awards 5,527 7,791 8,709 Diluted weighted average shares outstanding 104,962 104,561 99,660 Basic earnings per share $ 1.51 $ 1.20 $ 1.13 Diluted earnings per share $ 1.44 $ 1.11 $ 1.03 The following potentially dilutive securities were excluded from the calculation of diluted earnings per share as a result of their anti-dilutive effect: Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended December 26, December 27, December 28, in thousands 2019 2018 2017 Stock options 971 298 849 |
Selected Quarterly Financial In
Selected Quarterly Financial Information (unaudited) | 12 Months Ended |
Dec. 26, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Information (unaudited) | 13. Selected Quarterly Financial Information (unaudited) The following tables present the Company’s unaudited quarterly results for fiscal 2019 and fiscal 2018. Fiscal 2019 (in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 477,050 $ 520,311 $ 521,093 $ 527,002 Gross profit 201,374 217,823 213,788 230,029 Net income 30,720 43,596 40,974 35,341 Basic earnings per share 0.31 0.44 0.41 0.35 Diluted earnings per share 0.29 0.42 0.39 0.34 Fiscal 2018 (in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 402,948 $ 434,279 $ 435,882 $ 436,739 Gross profit 165,386 177,638 178,226 181,018 Net income 31,871 39,846 26,568 17,902 Basic earnings per share 0.33 0.41 0.27 0.18 Diluted earnings per share 0.30 0.38 0.25 0.17 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 26, 2019 | |
Subsequent Events | |
Subsequent Events | 14. Subsequent Event Credit Facility Amendments Term Loan Facility Amendments On February 14, 2020, we entered into a repricing and general amendment to the credit agreement governing our senior secured term loan facility (as amended, the “Amended Term Loan Facility”) that, among other things, (a) refinanced our existing term loan facility with a new term loan facility in the aggregate principal amount of approximately $144.6 million, and (b) extended the stated maturity date under the Amended Term Loan Facility to February 14, 2027. The Amended Term Loan Facility also includes an “accordion” feature that allows us, under certain circumstances, to increase the size of the facility by an amount up to the greater of $270.0 million or 100% of Consolidated EBITDA (as defined in the Amended Term Loan Facility), subject to certain additional adjustments. The amendment to the Amended Term Loan Facility also amended the margin applied to loans to (x) in the case of ABR Loans (as defined in the Amended Term Loan Facility), from 1.75% or 1.50% per annum (based on credit rating tests) to 1.00% per annum (subject to a leverage-based step-up to 1.25% if certain leverage ratio tests are satisfied), and (y) in the case of Eurodollar Loans (as defined in the Amended Term Loan Facility), from 2.75% or 2.50% per annum (based on credit rating tests) to 2.00% per annum (subject to a leverage-based step-up to 2.25% if certain leverage ratio tests are satisfied) (subject to a 0.00% floor on Eurodollar Loans). The material terms of the Amended Term Loan Facility were otherwise unchanged. ABL Facility Amendments On February 14, 2020, we entered into a repricing and general amendment to the credit agreement governing our revolving credit facility (as amended, the “Amended ABL Facility”) that, among other things, (a) increased our revolving commitments to a total aggregate principal amount of $400.0 million, and (b) extended the stated maturity date under the Amended ABL Facility to February 14, 2025. The Amended ABL Facility also includes an “accordion” feature that allows us under certain circumstances, to increase the size of the facility by an amount up to $100.0 million, or such higher amount as may be agreed to by the Required Lenders (as defined in the Amended ABL Facility). The amendment to the Amended ABL Facility also amended the margin applied to loans and letters of credit to (x) in the case of base rate loans, from 0.25% or 0.50% per annum (based on availability) to a flat rate of 0.25% per annum, (y) in the case of LIBOR loans and letter of credit fees for standby letters of credit, from 1.25% or 1.50% per annum (based on availability) to a flat rate of 1.25% per annum (subject to a 0.00% floor on LIBOR loans) and (z) in the case of letter of credit fees for commercial letters of credit, from 0.75% or 1.00% per annum (based on availability) to a flat rate of 0.75% per annum. The material terms of the Amended ABL Facility were otherwise unchanged. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 26, 2019 | |
Summary of Significant Accounting Policies | |
Fiscal Year | Fiscal Year The Company’s fiscal year is the 52 - or 53 -week period ending on the Thursday on or preceding December 31st. Fiscal years ended December 26, 2019 (“fiscal 2019”), December 27, 2018 (“fiscal 2018”), and December 28, 2017 (“fiscal 2017”) include 52 weeks. When a 53 -week fiscal year occurs, we report the additional week at the end of the fiscal fourth quarter. 52 -week fiscal years consist of thirteen -week periods in the first, second, third, and fourth quarters of the fiscal year. |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. Unless indicated otherwise, the information in this Annual Report has been adjusted to give effect to a 321.820 -for-one stock split of the Company’s outstanding common stock, which was approved by the Company's board of directors and shareholders on April 13, 2017 and effected on April 24, 2017. |
Reclassifications | Reclassifications Within the Consolidated Statements of Cash Flows, prior period amounts for “other assets” and “other” have been combined and reclassified to the “other, net” line item to conform to the current period presentation. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash consists of currency and demand deposits with banks. |
Receivables | Receivables Receivables consist primarily of amounts due from credit card companies and receivables from vendors. The Company typically collects its credit card receivables within three to five business days of the underlying sale to the customer. The Company has agreements with a majority of its large merchandise vendors that allow for specified rebates based on purchasing volume. Generally, these agreements are on an annual basis, and the Company collects the rebates subsequent to its fiscal year end. Additionally, the Company has agreements with substantially all vendors that allow for the return of certain merchandise throughout the normal course of business. When inventory is identified to return to a vendor, it is removed from inventory and recorded as a receivable on the Consolidated Balance Sheet, and any variance between capitalized inventory cost associated with the return and the expected vendor reimbursement is expensed in Cost of sales in the Consolidated Statement of Income when the inventory is identified to be returned to the vendor. The Company reserves for estimated uncollected receivables based on historical trends, which historically have been immaterial. The allowance for doubtful accounts as of December 26, 2019 and December 27, 2018, was $266 thousand and $184 thousand, respectively. As of December 26, 2019, receivables also include $19.3 million of expected tariff recoveries (“tariff refunds”) from U.S. Customers and Border Protection (“U.S. Customs”). These receivables relate to a U.S. Trade Representative (“USTR”) ruling on November 7, 2019 to grant exclusions from Section 301 tariffs for select types of flooring products imported from China, including certain “click” vinyl and engineered products that the Company has sold and continues to sell. The Section 301 tariffs from which these goods are now excluded were implemented at 10% beginning in September 2018 and increased to 25% in June 2019. In addition, on November 20, 2019, U.S. Customs issued Chapter 99 exclusions for each unique article number identified under the November 7, 2019 USTR ruling. For the Company, the granted exclusions apply retroactively to tariffs paid beginning in September 2018 through November 2019. While tariff refund claims are subject to the approval of U.S. Customs, the Company currently expects to recover $19.3 million related to Section 301 tariff payments. During the fourth quarter of fiscal 2019, we recognized approximately $14.0 million of operating income (reduction to cost of sales) related to tariff refunds, including $11.0 million for products that had already been sold as of the date U.S. Customs issued Chapter 99 exclusions on November 20, 2019 as well as an additional $3.0 million related to products sold after this date through the end of fiscal 2019. Approximately $5.0 million of the estimated tariff refunds are related to merchandise on hand as of December 26, 2019 and have been recognized as reductions to the carrying cost of inventory. The remaining $0.3 million is related to interest income earned on anticipated tariff recoveries (interest accrues from the date that tariff payments were originally made through the date that such payments are refunded to the Company). All tariff refunds are expected to be received within less than 12 months from the end of fiscal 2019. |
Credit Program | Credit Program Credit is offered to the Company's customers through a proprietary credit card underwritten by third-party financial institutions and, except as follows, at no recourse to the Company. Beginning in fiscal 2018, the Company began offering limited credit to its commercial clients. The total exposure at the end of fiscal 2019 and fiscal 2018 was $1,045 thousand and $251 thousand, respectively. |
Inventory Valuation and Shrinkage | Inventory Valuation and Shrinkage Inventories consist of merchandise held for sale and are stated at the lower of cost or net realizable value. When evidence exists that the net realizable value of inventory is lower than its cost, the difference is recorded in cost of sales in the Consolidated Statements of Operations and Comprehensive Income as a loss in the period in which it occurs. The Company determines inventory costs using the moving weighted average cost method. The Company capitalizes transportation, duties, and other costs to get product to its retail locations. The Company records reserves for estimated losses related to shrinkage and other amounts that are otherwise not expected to be fully recoverable. These reserves are calculated based on historical shrinkage, selling price, margin, and current business trends. The estimates have calculations that require management to make assumptions based on the current rate of sales, age, salability, and profitability of inventory, historical percentages that can be affected by changes in the Company's merchandising mix, customer preferences, and changes in actual shrinkage trends. These reserves totaled $4,468 thousand and $4,265 thousand as of December 26, 2019 and December 27, 2018, respectively. Physical inventory counts and cycle counts are performed on a regular basis in each store and distribution center to ensure that amounts reflected in the accompanying Consolidated Balance Sheets are properly stated. During the period between physical inventory counts in our stores, the Company accrues for estimated losses related to shrinkage on a store-by-store basis. Shrinkage is the difference between the recorded amount of inventory and the physical inventory. Shrinkage may occur due to theft or loss, among other things. |
Fixed Assets | Fixed Assets Fixed assets consist primarily of furniture, fixtures, and equipment, leasehold improvements (including those that are reimbursed by landlords as tenant improvement allowances), computer software and hardware, and land. Fixed assets are stated at cost less accumulated depreciation utilizing the straight-line method over the assets’ estimated useful lives. Leasehold improvements are amortized using the straight-line method over the shorter of (i) the original term of the lease, (ii) renewal term of the lease if the renewal is reasonably certain or (iii) the useful life of the improvement. The Company’s fixed assets are depreciated using the following estimated useful lives: Useful Life Furniture, fixtures and equipment 2 - 7 years Leasehold improvements 10 - 25 years Computer software and hardware 3 - 7 years Land Indefinite The cost and related accumulated depreciation of assets sold or otherwise disposed are removed from the accounts, and the related gain or loss is reported in the Consolidated Statements of Operations and Comprehensive Income. . |
Capitalized Software Costs | Capitalized Software Costs The Company capitalizes certain costs related to the acquisition and development of software and amortizes these costs using the straight-line method over the estimated useful life of the software. Certain development costs not meeting the criteria for capitalization are expensed as incurred. |
Goodwill and Other Indefinite-Lived Intangible Assets | Goodwill and Other Indefinite-Lived Intangible Assets Goodwill represents the excess of purchase price over the fair value of net assets acquired. The Company does not amortize goodwill and other intangible assets with indefinite lives resulting from business combinations but, in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350, Intangibles—Goodwill and Other , does assess the recoverability of goodwill annually in the fourth quarter of each fiscal year, or more often if events occur or changes in circumstances indicate that the carrying amount of goodwill may not be recoverable. Such circumstances could include, but are not limited to, a significant adverse change in customer demand or business climate or an adverse action or assessment by a regulator. In accordance with ASC 350, identifiable intangible assets with finite lives are amortized over their estimated useful lives. Each year, the Company may assess qualitative factors to determine whether it is more likely than not that the fair value of the single reporting unit is less than its carrying amount as a basis for determining whether it is necessary to complete quantitative impairment assessments. The Company completed a qualitative assessment in fiscal 2019. Based on such goodwill impairment analysis performed qualitatively as of October 25, 2019, the Company determined that the fair value of its reporting unit is in excess of its carrying value. No events or changes in circumstances have occurred since the date of the Company's most recent annual impairment test that would more likely than not reduce the fair value of the reporting unit below its carrying amount. The Company annually (or more frequently if there are indicators of impairment) evaluates whether its indefinite-lived asset continues to have an indefinite life or have impaired carrying values due to changes in the asset or its related risks. The impairment review is performed by comparing the carrying value of the indefinite-lived intangible asset to its estimated fair value. If the recorded carrying value of the indefinite-lived asset exceeds its estimated fair value, an impairment charge is recorded to write the asset down to its estimated fair value. The estimated lives of the Company’s intangible assets are as follows: Useful Life Trade names Indefinite Vendor relationships 10 The Company’s goodwill and other indefinite-lived intangible assets impairment loss calculations contain uncertainties because they require management to make significant judgments in estimating the fair value of the Company’s reporting unit and indefinite-lived intangible asset, including the projection of future cash flows, assumptions about which market participants are the most comparable, the selection of discount rates, and the weighting of the income and market approaches. These calculations contain uncertainties because they require management to make assumptions such as estimating economic factors, including the profitability of future business operations and, if necessary, the fair value of the reporting unit’s assets and liabilities. Further, the Company’s ability to realize the future cash flows used in its fair value calculations is affected by factors such as changes in economic conditions, changes in the Company’s operating performance, and changes in the Company’s business strategies. Significant changes in any of the assumptions involved in calculating these estimates could affect the estimated fair value of the Company’s reporting unit and indefinite-lived intangible assets and could result in impairment charges in a future period. |
Long-Lived Assets | Long-Lived Assets Long-lived assets, such as fixed assets, operating lease right-of-use assets, and intangible assets with finite lives, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of an asset, significant changes or planned changes in our use of an asset, a product recall, or an adverse action by a regulator. In accordance with ASC 360, the evaluation is performed at the lowest level for which identifiable cash flows are available that are largely independent of the cash flows of other assets or asset groups. If the sum of the estimated undiscounted future cash flows is less than the carrying value of the related asset or asset group, an impairment loss is recognized equal to the difference between carrying value and fair value. Since there is typically no active market for the Company’s definite-lived intangible asset, the Company estimates fair value based on expected future cash flows at the time they are identified. When events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, the Company estimates future cash flows based on store-level historical results, current trends, and operating and cash flow projections. The definite-lived intangible asset is amortized over its estimated useful life on a straight-line basis, which the Company believes to be the amortization methodology that best matches the pattern of economic benefit that is expected from the asset. The useful life of the definite-lived intangible asset is evaluated on an annual basis. |
Leases | Leases The Company recognizes lease assets and corresponding lease liabilities for all operating leases on the balance sheet, excluding short-term leases (leases with terms of 12 months or less) as described under ASU No. 2016-02, “Leases (Topic 842).” The majority of our long-term operating lease agreements include options to extend, which are also factored into the recognition of their respective assets and liabilities when appropriate based on management’s assessment of the probability that the options will be exercised. Lease payments are discounted using the rate implicit in the lease, or, if not readily determinable, a third-party secured incremental borrowing rate based on information available at lease commencement. The secured incremental borrowing rate is estimated based on yields obtained from Bloomberg for U.S. consumers with a BB- credit rating and is adjusted for collateralization as well as inflation. Additionally, certain of our lease agreements include escalating rents over the lease terms which, under Topic 842, results in rent being expensed on a straight-line basis over the life of the lease that commences on the date we have the right to control the property. |
Self-Insurance Reserves | Self-Insurance Reserves The Company is partially self-insured for workers’ compensation and general liability claims less than certain dollar amounts and maintains insurance coverage with individual and aggregate limits. The Company also has a basket aggregate limit to protect against losses exceeding $10.0 million (subject to adjustment and certain exclusions) for workers' compensation claims and general liability claims. The Company’s liabilities represent estimates of the ultimate cost for claims incurred, including loss adjusting expenses, as of the balance sheet date. The estimated liabilities are not discounted and are established based upon analysis of historical data, actuarial estimates, regulatory requirements, an estimate of claims incurred but not yet reported, and other relevant factors. Management utilizes independent third-party actuarial studies to help assess the liability on a regular basis. |
Commitments and Contingencies | Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. |
Asset Retirement Obligations | Asset Retirement Obligations An asset retirement obligation (“ARO”) represents a legal obligation associated with the retirement of a tangible long-lived asset that is incurred upon the acquisition, construction, development or normal operation of that long-lived asset. The Company’s AROs are primarily associated with leasehold improvements that, at the end of a lease, the Company is contractually obligated to remove in order to comply with certain lease agreements. The ARO is recorded in Other long-term liabilities on the Consolidated Balance Sheets and will be subsequently adjusted for changes in fair value. The associated estimated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset and depreciated over its useful life. Changes in (i) inflation rates and (ii) the estimated costs, timing and extent of future store closure activities each result in (a) a current adjustment to the recorded liability and related asset and (b) a change in the liability and asset amounts to be recorded prospectively. Any changes related to the assets are then recognized in accordance with our depreciation policy, which would generally result in depreciation expense being recognized prospectively over the shorter of the remaining lease term or estimated useful life. |
Fair Value Measurements | Fair Value Measurements The Company estimates fair values in accordance with ASC 820, Fair Value Measurement . ASC 820 provides a framework for measuring fair value and requires disclosures about fair value measurements. ASC 820 defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Additionally, ASC 820 defines levels within a hierarchy based upon observable and non-observable inputs. If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the overall fair value measurement of the instrument. ● Level 1: Quoted prices in active markets for identical assets or liabilities as of the reporting date; ● Level 2: Inputs other than quoted prices in active markets for identical assets or liabilities that are either directly or indirectly observable as of the reporting date; and ● Level 3: Unobservable inputs that reflect the reporting entity’s own estimates about the assumptions market participants would use in pricing the asset or liability. |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses derivative financial instruments to maintain a portion of its long-term debt obligations at a targeted balance of fixed and variable interest rate debt to manage its risk associated with fluctuations in interest rates. We recognize derivative contracts at fair value on the Consolidated Balance Sheets. The fair value is calculated utilizing Level 2 inputs. Unrealized changes in the fair value of hedged derivative instruments are recorded in accumulated other comprehensive (loss) income within the stockholders’ equity section of the Consolidated Balance Sheets. The effective portion of the gain or loss on the derivatives is reported as a component of comprehensive income within the Consolidated Statements of Operations and Comprehensive Income and reclassified into earnings in the same period in which the hedged transaction affects earnings. The effective portion of the derivative represents the change in fair value of the hedge that offsets the change in fair value of the hedged item. To the extent changes in fair values of the instruments are not highly effective, the ineffective portion of the hedge is immediately recognized in earnings. We perform an assessment of the effectiveness of our derivative contracts designated as hedges, including assessing the possibility of counterparty default. If we determine that a derivative is no longer expected to be highly effective, we discontinue hedge accounting prospectively and recognize subsequent changes in the fair value of the hedge in earnings. We believe our derivative contracts, which continue to be designated as cash flow hedges, and which consist of interest rate cap contracts, will continue to be highly effective in offsetting changes in cash flow attributable to floating interest rate risk. See footnote 8. Derivatives and Risk Management for additional information. . |
Use of Estimates | Use of Estimates The preparation of the financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales and expenses during the period. Significant items subject to such estimates and assumptions include the carrying amounts of fixed assets and intangibles, asset retirement obligations, allowances for accounts receivable and inventories, reserves for workers' compensation and general liability claims incurred but not reported, and deferred income tax assets and liabilities. Actual results could differ from these estimates. |
Revenue Recognition, Gift Cards and Merchandise Credits and Sales Returns and Allowances | Revenue Recognition As of the beginning of fiscal 2018, we adopted Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers” (“Topic 606”) using the modified retrospective transition method which requires that we recognize revenue differently pre- and post-adoption (see “Recent Accounting Pronouncements” for additional information). We recognize revenue and the related cost of sales when we satisfy the performance obligations in contracts with our customers in accordance with Topic 606. Performance obligations for our retail store sales, as well as for orders placed through our website and shipped to our customers, are satisfied at the . In some cases, merchandise is not physically ready for transfer to the customer at the point-of-sale, and revenue recognition is deferred until the customer has control of the inventory. Shipping and handling activities are accounted for as activities to fulfill the promise to transfer goods rather than as separate performance obligations as outlined within Topic 606. Payment is generally due from the customer immediately at the point-of-sale for both retail store sales and website sales. The nature of the goods offered include hard surface flooring and related accessories. We do not perform installation services, and we offer free design services in-store. The transaction price recognized in revenues represents the selling price of the products offered. Sales taxes collected are not recognized as revenue as these amounts are ultimately remitted to the appropriate taxing authorities. Our customers have the right to return the goods sold to them within a reasonable time period, typically 90 days . The right of return is an element of variable consideration as defined within Topic 606. We reserve for future returns of previously sold goods based on historical experience and various other assumptions that we believe to be reasonable. This reserve reduces sales and cost of sales as well as establishes a return asset and refund liability as defined with Topic 606. The return asset is included within prepaid expenses and other current assets, and the refund liability is included within accrued expenses and other current liabilities, each respectively on the Consolidated Balance Sheets. Merchandise exchanges of similar product and price are not considered merchandise returns and, therefore, are excluded when calculating the sales returns reserve. Gift Cards and Merchandise Credits We sell gift cards to our customers in our stores and through our website and issue merchandise credits in our stores. We account for the programs by recognizing a liability at the time the gift card is sold or the merchandise credit is issued. The liability is relieved and revenue is recognized upon redemption. Additionally, we recognize breakage income in proportion to the pattern of rights exercised by the customer when we expect to be entitled to breakage. Net sales related to the estimated breakage are included in net sales in the Consolidated Statement of Income. We have an agreement with an unrelated third-party who is the issuer of the Company's gift cards and also assumes the liability for unredeemed gift cards. The Company is not subject to claims under unclaimed property statutes, as the agreement effectively transfers the ownership of such unredeemed gift cards and the related future escheatment liability, if any, to the third-party. Gift card breakage is recognized based upon historical redemption patterns and represents the balance of gift cards for which the Company believes the likelihood of redemption by the customer is remote. Accordingly, in fiscal 2019, fiscal 2018, and fiscal 2017 gift card breakage income of $1,197 thousand, $1,584 thousand, and $757 thousand was recognized in net sales in the Consolidated Statements of Operations and Comprehensive Income, respectively, for such unredeemed gift cards. Loyalty Program We completed the roll out of our Pro Premier loyalty program to all stores in the second half of fiscal 2018, which allows customers to earn points through purchases in our stores and our website. Loyalty points are typically awarded at one percent of the relative standalone selling price of the merchandise sold and are recognized at the time of sale as a liability with a corresponding reduction to net sales. loyalty breakage is recognized based on the Company’s estimate of the balance of loyalty points for which the likelihood of redemption by the customer is deemed remote. based on the Company’s historical redemption trends, market benchmarks for the pattern of redemptions for other retail loyalty programs, and other assumptions related to the likelihood of customer redemptions. We are continuously monitoring redemption patterns and will adjust this rate, as necessary, as the program matures. Sales Returns and Allowances The Company accrues for estimated sales returns based on historical results. The allowance for sales returns at December 26, 2019 and December 27, 2018, was $15,437 thousand and $ 8,335 thousand, respectively. |
Cost of Sales, Vendor Rebates and Allowances | Cost of Sales Cost of sales consists of merchandise costs as well as freight, duty, and other costs to transport inventory to our distribution centers and stores. Cost of sales also includes costs for shrinkage, damaged product disposals, distribution, warehousing, sourcing, compliance, and arranging and paying for freight to deliver products to customers. The Company receives cash consideration from certain vendors related to vendor allowances and volume rebates, which is recorded as a reduction to the carrying value of inventory if the inventory is on hand and a reduction to cost of sales when the inventory is sold. Vendor Rebates and Allowances Vendor allowances consist primarily of volume rebates that are earned as a result of attaining certain inventory purchase levels and advertising allowances or incentives for the promotion of vendors' products. These vendor allowances are accrued as earned and are estimated based on annual projections. Vendor allowances earned are initially recorded as a reduction to the carrying value of inventory and a subsequent reduction in cost of sales when the related product is sold. Certain incentive allowances that are reimbursements of specific, incremental, and identifiable costs incurred to promote vendors’ products are recorded as an offset against these promotional expenses. |
Total Operating Expenses | Total Operating Expenses Total operating expenses consist primarily of store and administrative personnel wages and benefits, infrastructure expenses, supplies, fixed asset depreciation, store and corporate facility expenses, pre-opening costs, training costs, and advertising costs. Credit card fees, insurance, personal property taxes, legal expenses, and other miscellaneous operating costs are also included. |
Advertising Expenses | Advertising Expenses The Company expenses advertising costs as the advertising takes place. Advertising costs incurred during the years ended December 26, 2019, December 27, 2018, and December 28, 2017, were $65,690 thousand, $55,283 thousand, and $43,560 thousand respectively, and are included in selling and store operating expenses and pre-opening expenses in the accompanying Consolidated Statements of Operations and Comprehensive Income. |
Pre-Opening Expenses | Pre-Opening Expenses The Company accounts for non-capital operating expenditures incurred prior to opening a new store as "pre-opening" expenses in its Consolidated Statements of Operations and Comprehensive Income. The Company's pre-opening expenses begin on average three to six months in advance of a store opening or relocating due to, among other things, the amount of time it takes to prepare a store for its grand opening. Pre-opening expenses primarily include: advertising, rent, staff training, staff recruiting, utilities, personnel, and equipment rental. A store is considered to be relocated if it is closed temporarily and re-opened within the same primary trade area. Pre-opening expenses for the years ended December 26, 2019, December 27, 2018, and December 28, 2017, totaled $24,594 thousand, $26,145 thousand, and $16,485 thousand, respectively. |
Loss on Early Extinguishment of Debt | Loss on Early Extinguishment of Debt On May 2, 2017, the Company completed its initial public offering (“IPO”), pursuant to which it sold an aggregate of 10,147,025 shares of Class A common stock, par value $0.001 per share. The Company received aggregate net proceeds of approximately $192.0 million after deducting underwriting discounts and commissions and other offering expenses. The Company used net proceeds from the IPO of approximately $192.0 million to repay a portion of the amounts outstanding under the Term Loan Facility, including accrued and unpaid interest. The partial paydown resulted in a loss on extinguishment of debt in the amount of approximately $5.4 million related to unamortized original issue discount and unamortized deferred debt issuance costs. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for employee stock options, restricted stock, and employee stock purchase plans in accordance with ASC 718, Compensation – Stock Compensation . The Company obtains independent third-party valuation studies to assist with determining the grant date fair value of our stock price. Stock options are granted with exercise prices equal to or greater than the fair market value on the date of grant as authorized by the board of directors or compensation committee. Options granted have vesting provisions ranging from one to five years . Stock option grants are generally subject to forfeiture if employment terminates prior to vesting. The Company has selected the Black-Scholes option pricing model for estimating the grant date fair value of stock option awards granted. The Company bases the risk-free interest rate on the yield of a zero coupon U.S. Treasury security with a maturity equal to the expected life of the option from the date of the grant. The Company estimates the dividend yield to be zero as the Company does not intend to pay dividends in the future. The Company estimates the volatility of the share price of its common stock by considering the historical volatility of the stock of similar public entities. The Company considers a number of factors in determining the appropriateness of the public entities included in the volatility assumption, including the entity's life cycle stage, growth profile, size, financial leverage, and products offered. Stock-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense over the requisite service period based on the number of years for which the requisite service is expected to be rendered. |
Income Taxes | Income Taxes The Company accounts for income taxes under the liability method in accordance with ASC 740, Income Taxes , which requires the recognition of deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts and tax basis of existing assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Changes in tax laws and rates could affect recorded deferred tax assets and liabilities in the future. The effect on deferred tax assets and liabilities of a change in tax laws or rates is recognized in the period that includes the enactment date of such a change. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which the associated temporary differences became deductible. On a quarterly basis, the Company evaluates whether it is more likely than not that its deferred tax assets will be realized in the future and concludes whether a valuation allowance must be established. The Company includes any estimated interest and penalties on tax-related matters in income taxes payable and income tax expense. The Company accounts for uncertain tax positions in accordance with ASC 740. ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements using a two-step process for evaluating tax positions taken, or expected to be taken, on a tax return. The Company may only recognize the tax benefit from an uncertain tax position if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. Uncertain tax positions require determinations and estimated liabilities to be made based on provisions of the tax law, which may be subject to change or varying interpretation. The Company does not believe it has any material risks related to uncertain tax positions. |
Segments | Segments The Company operates as a specialty retailer of hard surface flooring and related accessories through retail stores located in the United States and through its website. Operating segments are defined as components of an entity for which discrete financial information is available and that is regularly reviewed by the chief operating decision maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s CODM is its Chief Executive Officer. The Company has determined that it has one operating segment and one reportable segment as the CODM reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. In addition, the Company concluded that economic and operating characteristics are similar across its retail operations, including the net sales, gross profit and gross margin, and operating income of its retail stores as well as the product offerings, marketing initiatives, operating procedures, store layouts, employee incentive programs, customers, methods of distribution, competitive and operating risks, and the level of shared resources across the business. |
Recently Adopted and Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements Goodwill. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” This standard simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. ASU No. 2017-04 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted after January 1, 2017. The Company elected to early adopt this standard during the fourth quarter of 2017. The amendments in this update should be applied using a prospective approach. The adoption of ASU No. 2017-04 did not have a material impact on the Company's consolidated financial statements. Income Taxes. In October 2016, the FASB issued ASU No. 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.” This standard update requires an entity to recognize the income tax consequences of intra-entity transfers of assets other than inventory when the transfer occurs. ASU No. 2016-16 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. The amendments in this update should be applied using a modified retrospective approach. The adoption of ASU No. 2016-16 did not have a material impact on the Company's consolidated financial statements. Leases. In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, “Leases (Topic 842).” ASU No. 2016-02 requires that lessees recognize lease assets and lease liabilities on the balance sheet with an option to exclude short-term leases (leases with terms of 12 months or less). The guidance also requires disclosures about the amount, timing, and uncertainty of cash flows arising from leases. We adopted the ASU in the first quarter of fiscal 2019 using the modified retrospective approach. The cumulative effect adjustment upon adoption resulted in a $179 thousand opening balance sheet reduction to retained earnings. The adoption of ASU No. 2016-02 had a material impact on the Company’s Consolidated Balance Sheets but did not have a material impact on the Company’s Consolidated Statements of Operations and Comprehensive Income or Consolidated Statements of Cash Flows. See Note 9, “Commitments and Contingencies,” for additional information related to the Company’s leases. Revenue from Contracts with Customers. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU No. 2014-09 provides new guidance related to the core principle that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to receive in exchange for those goods or services provided. We adopted this standard in the first quarter of fiscal 2018 using the modified retrospective approach, effective December 29, 2017. The cumulative adjustment upon adoption primarily resulted in a reduction of deferred revenue and related inventories and an increase to retained earnings of $7.8 million, net of tax. The adoption of ASU No. 2014-09 did not have a material impact to the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements Implementation Costs Incurred in Cloud Computing Arrangements. assets or other assets on the Consolidated Balance Sheets and will recognize expense within general and administrative expenses or other operating costs on the Consolidated Statements of Operations and Comprehensive Income, consistent with where the expense associated with the hosting element of the arrangement are presented. The Company does not expect the adoption of ASU No. 2018-15 to have a material impact to its consolidated financial statements. Credit Losses. Simplifying the Accounting for Income Taxes. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Summary of Significant Accounting Policies | |
Schedule of Fixed Assets Estimated Useful Lives | Useful Life Furniture, fixtures and equipment 2 - 7 years Leasehold improvements 10 - 25 years Computer software and hardware 3 - 7 years Land Indefinite |
Schedule of Intangible Assets Estimated Lives | Useful Life Trade names Indefinite Vendor relationships 10 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Disaggregation of Revenue [Abstract] | |
Disaggregated Revenue | Fiscal Year Ended December 26, 2019 December 27, 2018 December 28, 2017 % of % of % of Product Category Net Sales Net Sales Net Sales Net Sales Net Sales Net Sales Tile $ 523,076 26 % $ 476,337 27 % $ 419,745 30 % Laminate / luxury vinyl plank 442,171 22 316,109 18 208,238 15 Decorative accessories/ wall tile 393,908 19 325,139 19 257,684 19 Installation materials and tools 346,356 17 272,994 16 217,427 16 Wood 202,888 10 192,087 12 167,152 12 Natural stone 127,975 6 113,565 7 104,670 8 Other (1) 9,082 — 13,617 1 9,851 — Total $ 2,045,456 100 % $ 1,709,848 100 % $ 1,384,767 100 % (1) Other includes delivery revenue less adjustments for deferred revenue, sales return reserves, rewards under our Pro Premier Loyalty program, and other revenue related adjustments that are not allocated on a product-level basis. |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Accrued Expenses | |
Schedule of accrued expenses | December 26, December 27, 2019 2018 Accrued incentive compensation $ 18,635 $ 12,473 Sales tax payable 14,304 12,046 Accrued construction in progress new stores 10,043 9,421 Insurance reserve incurred but not reported 9,399 8,229 Wages and payroll tax payable 8,328 6,936 Loyalty program liability 6,649 2,274 Other 35,449 30,659 Accrued expenses and other current liabilities $ 102,807 $ 82,038 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Fixed Assets | |
Schedule of fixed assets | December 26, December 27, 2019 2018 Furniture, fixtures and equipment $ 236,555 $ 174,663 Leasehold improvements 321,334 216,461 Computer software and hardware 113,975 83,628 Land 8,715 5,297 Fixed assets, at cost 680,579 480,049 Less: accumulated depreciation and amortization 224,290 151,683 Fixed assets, net $ 456,289 $ 328,366 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of finite-lived and indefinite-lived assets | December 26, 2019 December 27, 2018 Gross Gross Estimated Carrying Accumulated Carrying Accumulated Useful Lives Amount Amortization Amount Amortization Amortizable intangible asset: Vendor relationships 10 years $ 319 $ (289) $ 319 $ (258) Indefinite-lived intangible asset: Trade names 109,269 — 109,269 — Total $ 109,588 $ (289) $ 109,588 $ (258) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Income Taxes | |
Schedule of components of the provision for income taxes | Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended December 26, December 27, December 28, 2019 2018 2017 Current expense / (benefit): Federal $ 7,975 $ 5,496 $ (4,097) State 2,358 1,669 479 Total current expense / benefit 10,333 7,165 (3,618) Deferred expense / (benefit): Federal (6,522) 922 (250) State (4,062) (1,890) (368) Total deferred (benefit) / expense (10,584) (968) (618) Provision for income taxes $ (251) $ 6,197 $ (4,236) |
Schedule of effective income tax reconciliation | Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended December 26, December 27, December 28, 2019 2018 2017 Computed “expected” provision at statutory rate $ 31,580 $ 25,700 $ 34,499 State income taxes, net of federal income tax benefit (1,364) (627) (28) Permanent differences: Excess tax benefit related to options exercised (29,441) (17,478) (20,762) Non-qualified option holder dividend equivalent — — — Other 543 457 691 Total permanent differences (28,898) (17,021) (20,071) Change in U.S. tax rate — (573) (17,850) Provision to return (282) (739) (63) Federal tax credits (1,306) (685) (577) Other, net 19 142 (146) Provision for income taxes $ (251) $ 6,197 $ (4,236) |
Schedule of deferred tax assets and liabilities | Fiscal Year Ended Year Ended December 26, December 27, 2019 2018 Deferred tax assets: Accruals not currently deductible for tax purposes $ 2,820 $ 13,338 Tenant improvement allowances — 9,239 Inventories 5,283 3,948 Stock based compensation 3,984 3,684 Other intangibles 313 361 Gift card liability 453 242 Litigation accrual 139 172 Lease liabilities 233,106 — Other 3,718 2,858 Total deferred tax assets 249,816 33,842 Deferred tax liabilities: Intangible assets (26,939) (27,023) Fixed assets (35,576) (30,681) Right-of-use assets (203,028) — Other (2,651) (2,976) Total deferred tax liabilities (268,194) (60,680) Net deferred tax liabilities $ (18,378) $ (26,838) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Fair Value Measurements | |
Schedule of Assets (Liabilities) Measured at Fair Value on a Recurring Basis | As of December 26, (in thousands) 2019 Level 1 Level 2 Level 3 Designated as hedges: Interest rate cap (cash flow hedge) $ 20 $ — $ 20 $ — Not designated as hedges: Interest rate cap $ — $ — $ — $ — As of December 27, (in thousands) 2018 Level 1 Level 2 Level 3 Designated as hedges: Interest rate cap (cash flow hedge) $ 1,076 $ — $ 1,076 $ — Not designated as hedges: Interest rate cap $ 1,075 $ — $ 1,075 $ — |
Derivatives and Risk Manageme_2
Derivatives and Risk Management (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Derivatives and Risk Management | |
Schedule of derivative position | Derivative Position as of December 26, 2019: Final Maturity Other AOCI, Net (in thousands) Notional Balance Date Assets of Tax Designated as hedges: Interest rate cap (cash flow hedge) $ 102,500 U.S. dollars December 2021 $ 20 $ 236 Not designated as hedges: Interest rate cap $ 102,500 U.S. dollars December 2021 $ — $ (43) Derivative Position as of December 27, 2018: Final Maturity Other AOCI, Net (in thousands) Notional Balance Date Assets of Tax Designated as hedges: Interest rate cap (cash flow hedge) $ 102,500 U.S. dollars December 2021 $ 1,076 $ 177 Not designated as hedges: Interest rate cap $ 102,500 U.S. dollars December 2021 $ 1,075 $ 9 |
Schedule of gains (losses) related to our designated hedge contracts | Effective Portion Reclassified Effective Portion Recognized in From AOCI to Earnings Other Comprehensive Income (Loss) Fiscal Year Ended Fiscal Year Ended December 26, December 27, December 28, December 26, December 27, December 28, (in thousands) 2019 2018 2017 2019 2018 2017 Interest rate cap (cash flow hedge) $ — $ — $ — $ (379) $ 391 $ (381) Interest rate swaps (cash flow hedges) $ — $ — $ — $ — $ — $ — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Commitments and Contingencies. | |
Schedule of supplemental balance sheet information related to operating leases | As of in thousands, except lease term and discount rate Classification December 26, 2019 Assets Building Right-of-use assets $ 808,989 Equipment Right-of-use assets 7,322 Land Right-of-use assets 2,378 Software Right-of-use assets 3,567 Total operating lease assets $ 822,256 Liabilities Current Building Current portion of lease liabilities $ 67,500 Equipment Current portion of lease liabilities 3,758 Land Current portion of lease liabilities 170 Software Current portion of lease liabilities 3,164 Total current operating lease liabilities 74,592 Noncurrent Building Lease liabilities 837,510 Equipment Lease liabilities 3,902 Land Lease liabilities 2,357 Software Lease liabilities 500 Total noncurrent operating lease liabilities 844,269 Total operating lease liabilities $ 918,861 Weighted-average remaining lease term 10 years Weighted-average discount rate 5.3% |
Schedule of components of lease expense | Fiscal Year Ended in thousands Classification December 26, 2019 Operating lease cost (1) Selling and store operating $ 116,623 Sublease income Selling and store operating (2,414) Total lease cost $ 114,209 (1) Includes variable lease costs, which are immaterial. |
Schedule of future minimum lease payments under non cancelable operating leases | in thousands Amount 2020 $ 122,303 2021 127,449 2022 120,091 2023 116,505 2024 113,019 Thereafter 622,954 Total minimum lease payments (2) $ 1,222,321 Less: amount of lease payments representing interest 303,460 Present value of future minimum lease payments 918,861 Less: current obligations under leases 74,592 Long-term lease obligations $ 844,269 (2) Future lease payments exclude approximately $165.8 million of legally binding minimum lease payments for operating leases signed but not yet commenced. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Debt | |
Schedule of Long Term Debt | Interest Rate Per Annum at Maturity December 26, December 26, December 27, Date 2019 2019 2018 Credit Facilities: UBS Facility Term Loan B September 30, 2023 4.77 % Variable $ 145,500 $ 149,000 Wells Facility Revolving Line of Credit September 30, 2021 4.25 % Variable — — Total secured debt 145,500 149,000 Less: current maturities — 3,500 Long-term debt maturities 145,500 145,500 Less: unamortized discount and debt issuance costs 2,894 3,666 Total long-term debt $ 142,606 $ 141,834 |
Schedule of fair value debt | December 26, December 27, in thousands 2019 2018 Total debt at par value $ 145,500 $ 149,000 Less: unamortized discount and debt issuance costs 2,894 3,666 Net carrying amount $ 142,606 $ 145,334 Fair value $ 145,136 $ 147,883 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Stockholders' Equity | |
Schedule of assumptions used to estimate the fair value of stock option awards granted | Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended December 26, December 27, December 28, 2019 2018 2017 Risk-free interest rate 2.06 % 3.05 % 2.06 % Expected volatility 45 % 42 % 39 % Expected life (in years) 6.68 6.29 6.50 Dividend yield — % — % — % |
Schedule of changes in all stock options | Weighted Weighted Average Fair Weighted Options Average Value/Share of Average Exercisable Exercise Price Options Exercise at End of Exercisable Granted During Options Price of Year Options the Year Outstanding at December 29, 2016 11,979,111 $ 5.34 8,151,056 $ 4.20 $ — Granted 1,339,668 21.68 — — 9.20 Exercised (1,828,339) 4.85 — — — Forfeited or expired (236,354) 9.17 — — — Outstanding at December 28, 2017 11,254,086 7.28 7,448,532 4.52 — Granted 926,775 34.07 — — 15.63 Exercised (2,069,195) 5.09 — — — Forfeited or expired (258,838) 13.12 — — — Outstanding at December 27, 2018 9,852,828 10.11 6,409,257 5.21 — Granted 157,904 42.42 — — 20.38 Exercised (3,740,749) 5.03 — — — Forfeited or expired (232,904) 21.97 — — — Outstanding at December 26, 2019 6,037,079 $ 13.64 3,673,657 $ 8.25 $ — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Earnings Per Share | |
Schedule of computation of basic and diluted earnings per share | Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended December 26, December 27, December 28, in thousands, except per share data 2019 2018 2017 Net income $ 150,631 $ 116,187 $ 102,788 Basic weighted average shares outstanding 99,435 96,770 90,951 Dilutive effect of share based awards 5,527 7,791 8,709 Diluted weighted average shares outstanding 104,962 104,561 99,660 Basic earnings per share $ 1.51 $ 1.20 $ 1.13 Diluted earnings per share $ 1.44 $ 1.11 $ 1.03 |
Schedule of awards excluded from computation | Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended December 26, December 27, December 28, in thousands 2019 2018 2017 Stock options 971 298 849 |
Selected Quarterly Financial _2
Selected Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 26, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Table Text Block] | Fiscal 2019 (in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 477,050 $ 520,311 $ 521,093 $ 527,002 Gross profit 201,374 217,823 213,788 230,029 Net income 30,720 43,596 40,974 35,341 Basic earnings per share 0.31 0.44 0.41 0.35 Diluted earnings per share 0.29 0.42 0.39 0.34 Fiscal 2018 (in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 402,948 $ 434,279 $ 435,882 $ 436,739 Gross profit 165,386 177,638 178,226 181,018 Net income 31,871 39,846 26,568 17,902 Basic earnings per share 0.33 0.41 0.27 0.18 Diluted earnings per share 0.30 0.38 0.25 0.17 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) ft² in Thousands | Apr. 24, 2017 | Dec. 26, 2019ft²facilitysegmentstate | Dec. 27, 2018 | Dec. 28, 2017 |
Real Estate Properties [Line Items] | ||||
Number of reportable segments | segment | 1 | |||
Number of states with facilities | state | 30 | |||
Number of distribution centers | 4 | |||
Fiscal year period | 364 days | 364 days | 364 days | |
Fiscal quarter period | 91 days | |||
Stock split conversion ratio | 321.820 | |||
Minimum | ||||
Real Estate Properties [Line Items] | ||||
Fiscal year period | 364 days | |||
Maximum | ||||
Real Estate Properties [Line Items] | ||||
Fiscal year period | 371 days | |||
Warehouse Format Store [Member] | ||||
Real Estate Properties [Line Items] | ||||
Number of stores | 120 | |||
Area of facility | ft² | 76 | |||
Small Format Store [Member] | ||||
Real Estate Properties [Line Items] | ||||
Number of stores | 1 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Receivables and Assets (Details) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 26, 2019 | Nov. 20, 2019 | Dec. 26, 2019 | Dec. 27, 2018 | |
Receivables, Net, Current [Abstract] | ||||
Allowance for doubtful accounts | $ 266 | $ 266 | $ 184 | |
Tariff recoveries receivable | 19,300 | 19,300 | ||
Reduction to cost of sales related to tariff refunds | 3,000 | $ 11,000 | 14,000 | |
Reduction to carrying cost of inventory related to tariff refunds | 5,000 | 5,000 | ||
Interest income earned on anticipated tariff recoveries | 300 | |||
Exposure from credit program | 1,045 | 1,045 | 251 | |
Inventory Adjustments [Abstract] | ||||
Inventory valuation reserves | $ 4,468 | $ 4,468 | $ 4,265 | |
Property, Plant and Equipment, Gross [Abstract] | ||||
Useful life, fixed assets | 25 years | |||
Vendor Relationships | ||||
Intangible Assets, Net (Including Goodwill) [Abstract] | ||||
Useful life, intangible assets | 10 years | 10 years | ||
Maximum | ||||
Receivables, Net, Current [Abstract] | ||||
Receivables collection period | 5 days | |||
Maximum | Furniture, fixtures and equipment | ||||
Property, Plant and Equipment, Gross [Abstract] | ||||
Useful life, fixed assets | 7 years | |||
Maximum | Computer software and hardware | ||||
Property, Plant and Equipment, Gross [Abstract] | ||||
Useful life, fixed assets | 7 years | |||
Minimum | ||||
Receivables, Net, Current [Abstract] | ||||
Receivables collection period | 3 days | |||
Minimum | Furniture, fixtures and equipment | ||||
Property, Plant and Equipment, Gross [Abstract] | ||||
Useful life, fixed assets | 2 years | |||
Minimum | Leasehold improvements | ||||
Property, Plant and Equipment, Gross [Abstract] | ||||
Useful life, fixed assets | 10 years | |||
Minimum | Computer software and hardware | ||||
Property, Plant and Equipment, Gross [Abstract] | ||||
Useful life, fixed assets | 3 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Insurance and Derivatives (Details) $ in Millions | 12 Months Ended |
Dec. 26, 2019USD ($) | |
Insurance Loss Reserves [Abstract] | |
Maximum loss before additional coverage applies | $ 10 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Revenues, Advertising and Pre-Opening (Details) - USD ($) $ / shares in Units, $ in Thousands | May 02, 2017 | Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 |
Revenue from Contract with Customer [Abstract] | ||||
Number of days customer may return merchandise | 90 days | |||
Gift card breakage income | $ 1,197 | $ 1,584 | $ 757 | |
Loyalty program award, as a percentage of selling price | 1.00% | |||
Loyalty program breakage income | $ 1,051,000 | 401,000 | ||
Allowance for sales returns | 15,437 | 8,335 | ||
Marketing and Advertising Expense [Abstract] | ||||
Advertising expense | 65,690 | 55,283 | 43,560 | |
Pre-opening expenses | 24,594 | 26,145 | 16,485 | |
Gain (Loss) on Extinguishment of Debt [Abstract] | ||||
Number of shares issued | 10,147,025 | |||
Common stock, par value | $ 0.001 | |||
Net proceeds from initial public offering | $ 192,000 | 192,336 | ||
Payments on term loans | $ 192,000 | $ 3,500 | $ 3,500 | 197,500 |
Loss on extinguishment of debt | $ 5,442 | |||
Maximum | ||||
Marketing and Advertising Expense [Abstract] | ||||
Period prior to store opening or relocation that pre-opening expenses begin | 6 months | |||
Minimum | ||||
Marketing and Advertising Expense [Abstract] | ||||
Period prior to store opening or relocation that pre-opening expenses begin | 3 months |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - SBC (Details) | 12 Months Ended |
Dec. 26, 2019segment | |
Stock-Based Compensation | |
Number of reportable segments | 1 |
Number of operating segments | 1 |
Stock options | |
Stock-Based Compensation | |
Dividend yield | 0.00% |
Stock options | Maximum | |
Stock-Based Compensation | |
Period of vesting provision | 5 years |
Stock options | Minimum | |
Stock-Based Compensation | |
Period of vesting provision | 1 year |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 394,015 | $ 243,563 | |
Deferred revenue | $ 6,683 | 5,244 | |
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 7,800 | ||
Deferred revenue | $ (7,800) | ||
Restatement Adjustment [Member] | Accounting Standards Update 2016-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ (179) |
Revenues (Details)
Revenues (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2019USD ($) | Sep. 26, 2019USD ($) | Jun. 27, 2019USD ($) | Mar. 28, 2019USD ($) | Dec. 27, 2018USD ($) | Sep. 27, 2018USD ($) | Jun. 28, 2018USD ($) | Mar. 29, 2018USD ($) | Dec. 26, 2019USD ($)segment | Dec. 27, 2018USD ($) | Dec. 28, 2017USD ($) | |
Disaggregation of Revenue [Line Items] | |||||||||||
Number of reportable segments | segment | 1 | ||||||||||
Number of operating segments | segment | 1 | ||||||||||
Net Sales | $ 527,002 | $ 521,093 | $ 520,311 | $ 477,050 | $ 436,739 | $ 435,882 | $ 434,279 | $ 402,948 | $ 2,045,456 | $ 1,709,848 | $ 1,384,767 |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | $ 1,384,767 | ||||||||||
Revenue from Contract with Customer, Product and Service Benchmark [Member] | Product Concentration Risk [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
% of Net Sales | 100.00% | 100.00% | |||||||||
Revenue from Contract with Customer, Product and Service Benchmark [Member] | Product Concentration Risk [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
% of Net Sales | 100.00% | ||||||||||
Tile | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | $ 523,076 | $ 476,337 | |||||||||
Tile | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | $ 419,745 | ||||||||||
Tile | Revenue from Contract with Customer, Product and Service Benchmark [Member] | Product Concentration Risk [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
% of Net Sales | 26.00% | 27.00% | |||||||||
Tile | Revenue from Contract with Customer, Product and Service Benchmark [Member] | Product Concentration Risk [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
% of Net Sales | 30.00% | ||||||||||
Laminate Luxury Vinyl Plank | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | $ 442,171 | $ 316,109 | |||||||||
Laminate Luxury Vinyl Plank | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | $ 208,238 | ||||||||||
Laminate Luxury Vinyl Plank | Revenue from Contract with Customer, Product and Service Benchmark [Member] | Product Concentration Risk [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
% of Net Sales | 22.00% | 18.00% | |||||||||
Laminate Luxury Vinyl Plank | Revenue from Contract with Customer, Product and Service Benchmark [Member] | Product Concentration Risk [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
% of Net Sales | 15.00% | ||||||||||
Decorative Accessories | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | $ 393,908 | $ 325,139 | |||||||||
Decorative Accessories | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | $ 257,684 | ||||||||||
Decorative Accessories | Revenue from Contract with Customer, Product and Service Benchmark [Member] | Product Concentration Risk [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
% of Net Sales | 19.00% | 19.00% | |||||||||
Decorative Accessories | Revenue from Contract with Customer, Product and Service Benchmark [Member] | Product Concentration Risk [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
% of Net Sales | 19.00% | ||||||||||
Installation Materials And Tools | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | $ 346,356 | $ 272,994 | |||||||||
Installation Materials And Tools | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | $ 217,427 | ||||||||||
Installation Materials And Tools | Revenue from Contract with Customer, Product and Service Benchmark [Member] | Product Concentration Risk [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
% of Net Sales | 17.00% | 16.00% | |||||||||
Installation Materials And Tools | Revenue from Contract with Customer, Product and Service Benchmark [Member] | Product Concentration Risk [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
% of Net Sales | 16.00% | ||||||||||
Wood | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | $ 202,888 | $ 192,087 | |||||||||
Wood | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | $ 167,152 | ||||||||||
Wood | Revenue from Contract with Customer, Product and Service Benchmark [Member] | Product Concentration Risk [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
% of Net Sales | 10.00% | 12.00% | |||||||||
Wood | Revenue from Contract with Customer, Product and Service Benchmark [Member] | Product Concentration Risk [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
% of Net Sales | 12.00% | ||||||||||
Natural Stone | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | $ 127,975 | $ 113,565 | |||||||||
Natural Stone | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | $ 104,670 | ||||||||||
Natural Stone | Revenue from Contract with Customer, Product and Service Benchmark [Member] | Product Concentration Risk [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
% of Net Sales | 6.00% | 7.00% | |||||||||
Natural Stone | Revenue from Contract with Customer, Product and Service Benchmark [Member] | Product Concentration Risk [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
% of Net Sales | 8.00% | ||||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | $ 9,082 | $ 13,617 | |||||||||
Other | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | $ 9,851 | ||||||||||
Other | Revenue from Contract with Customer, Product and Service Benchmark [Member] | Product Concentration Risk [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
% of Net Sales | 1.00% |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 26, 2019 | Dec. 27, 2018 |
Accrued Expenses | ||
Accrued incentive compensation | $ 18,635 | $ 12,473 |
Sales tax payable | 14,304 | 12,046 |
Accrued construction in progress new store | 10,043 | 9,421 |
Insurance reserve - incurred but not reported | 9,399 | 8,229 |
Wages and payroll tax payable | 8,328 | 6,936 |
Accrued loyalty program liability | 6,649 | 2,274 |
Other | 35,449 | 30,659 |
Accrued expenses and other current liabilities | $ 102,807 | $ 82,038 |
Fixed Assets (Details)
Fixed Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Fixed assets, at cost | $ 680,579 | $ 480,049 | |
Less: accumulated depreciation and amortization | 224,290 | 151,683 | |
Fixed assets, net | 456,289 | 328,366 | |
Depreciation and amortization | 69,856 | 50,478 | $ 36,255 |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, at cost | 236,555 | 174,663 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, at cost | 321,334 | 216,461 | |
Computer software and hardware | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, at cost | 113,975 | 83,628 | |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, at cost | $ 8,715 | $ 5,297 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Intangible Assets [Line Items] | |||
Accumulated Amortization | $ (289) | $ (258) | |
Total | 109,588 | 109,588 | |
Amortization of Intangible Assets | 31 | 32 | $ 32 |
Trade Names | |||
Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 109,269 | $ 109,269 | |
Vendor Relationships | |||
Intangible Assets [Line Items] | |||
Useful life, intangible assets | 10 years | 10 years | |
Gross Carrying Amount | $ 319 | $ 319 | |
Accumulated Amortization | (289) | $ (258) | |
Estimated amortization, 2020 | $ 30 |
Income Taxes - Provision (Detai
Income Taxes - Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Current (benefit) expense: | |||
Federal | $ 7,975 | $ 5,496 | $ (4,097) |
State | 2,358 | 1,669 | 479 |
Total current (benefit) expense | 10,333 | 7,165 | (3,618) |
Deferred (benefit)/expense: | |||
Federal | (6,522) | 922 | (250) |
State | (4,062) | (1,890) | (368) |
Total deferred (benefit)/expense | (10,584) | (968) | (618) |
Provision for income taxes | $ (251) | $ 6,197 | $ (4,236) |
Income Taxes - Effective rate r
Income Taxes - Effective rate reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Income Taxes [Line Items] | |||
Federal statutory tax rate (as a percent) | 21.00% | 21.00% | 35.00% |
Computed expected provision at statutory rate | $ 31,580 | $ 25,700 | $ 34,499 |
State income taxes, net of federal income tax benefit | (1,364) | (627) | (28) |
Excess tax benefit related to options exercised | (29,441) | (17,478) | (20,762) |
Other | 543 | 457 | 691 |
Total permanent differences | (28,898) | (17,021) | (20,071) |
Change in U.S. tax rate | (573) | (17,850) | |
Provision to return | (282) | (739) | (63) |
Federal tax credits | (1,306) | (685) | (577) |
Other, net | 19 | 142 | (146) |
Provision for income taxes | (251) | 6,197 | (4,236) |
State and Local Jurisdiction [Member] | |||
Income Taxes [Line Items] | |||
Excess tax benefit related to options exercised | $ (5,600) | $ (3,300) | $ (1,000) |
Income Taxes - Tax Cuts and Job
Income Taxes - Tax Cuts and Jobs Act (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Effect of Tax Cuts and Jobs Act [Abstract] | |||
Federal statutory tax rate (as a percent) | 21.00% | 21.00% | 35.00% |
Provisional amount related to Tax Cuts and Jobs Act of 2017 | $ (17,900) | ||
Adjustment to provisional amount | $ (600) | ||
Decrease in effective tax rate, as a percent | (0.47) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 26, 2019 | Dec. 27, 2018 |
Components of Deferred Tax Assets [Abstract] | ||
Accruals not currently deductible for tax purposes | $ 2,820 | $ 13,338 |
Tenant improvement allowances | 9,239 | |
Inventories | 5,283 | 3,948 |
Stock based compensation | 3,984 | 3,684 |
Other intangibles | 313 | 361 |
Gift card liability | 453 | 242 |
Litigation accrual | 139 | 172 |
Lease liabilities | 233,106 | |
Other | 3,718 | 2,858 |
Total deferred tax assets | 249,816 | 33,842 |
Components of Deferred Tax Liabilities [Abstract] | ||
Intangible assets | (26,939) | (27,023) |
Fixed assets | (35,576) | (30,681) |
Right of use assets | (203,028) | |
Other | (2,651) | (2,976) |
Total deferred tax liabilities | (268,194) | (60,680) |
Net deferred tax liabilities | $ (18,378) | $ (26,838) |
Income Taxes - Valuation and Un
Income Taxes - Valuation and Unrecognized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Income Taxes [Line Items] | |||
State net operating losses | $ (150,380) | $ (122,384) | $ (98,552) |
Valuation allowance | 0 | 0 | |
Unrecognized tax benefits | 400 | ||
Unrecognized tax benefits that would impact the effective tax rate | 0 | $ 0 | |
State and Local Jurisdiction [Member] | |||
Income Taxes [Line Items] | |||
State net operating losses | 719 | $ 776 | |
Net operating losses available to reduce future income taxes | $ 2,800 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring - USD ($) $ in Thousands | Dec. 26, 2019 | Dec. 27, 2018 |
Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate cap | $ 20 | $ 1,076 |
Not Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate cap | 1,075 | |
Level 2 | Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate cap | $ 20 | 1,076 |
Level 2 | Not Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate cap | $ 1,075 |
Derivatives and Risk Manageme_3
Derivatives and Risk Management (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Derivative [Line Items] | |||
Notional amount | $ 102,500 | ||
Derivative Asset, Noncurrent | 1,075 | ||
AOCI, Net of Tax | 9 | ||
Interest Rate Cap | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net [Abstract] | |||
Gain (loss) recognition in other comprehensive income (loss), effective portion | $ (379) | 391 | $ (381) |
Designated as Hedging Instrument [Member] | Interest Rate Cap | |||
Derivative [Line Items] | |||
Notional amount | 102,500 | 102,500 | |
Derivative Asset, Noncurrent | 20 | 1,076 | |
AOCI, Net of Tax | 236 | $ 177 | |
Not Designated as Hedging Instrument [Member] | Interest Rate Cap | |||
Derivative [Line Items] | |||
Notional amount | 102,500 | ||
AOCI, Net of Tax | $ (43) |
Commitments and Contingencies -
Commitments and Contingencies - Lease costs (Details) $ in Thousands | 12 Months Ended | |
Dec. 26, 2019USD ($)item | Dec. 27, 2018USD ($) | |
Lease Commitments | ||
Lease, Practical Expedients, Package [true false] | true | |
Right-of-use assets | $ 822,256 | |
Operating lease liability | $ 918,861 | |
Lease, Practical Expedient, Lessor Single Lease Component [true false] | true | |
Lease term for 1 particular lease | 20 years | |
Number of leases with longer term | item | 3 | |
Number of leases with variable payments | item | 1 | |
Number of distribution centers subleased | item | 1 | |
Current portion of lease liabilities | $ 74,592 | |
Lease liabilities | $ 844,269 | |
Weighted average remaining lease term | 10 years | |
Weighted average discount rate | 5.30% | |
Lease, Cost [Abstract] | ||
Operating lease cost | $ 116,623 | |
Operating lease, right-of-use asset impairment | 4,100 | |
Sublease income | (2,414) | |
Lease, Cost, Total | 114,209 | |
Building [Member] | ||
Lease Commitments | ||
Right-of-use assets | 808,989 | |
Current portion of lease liabilities | 67,500 | |
Lease liabilities | 837,510 | |
Equipment [Member] | ||
Lease Commitments | ||
Right-of-use assets | 7,322 | |
Current portion of lease liabilities | 3,758 | |
Lease liabilities | 3,902 | |
Land [Member] | ||
Lease Commitments | ||
Right-of-use assets | 2,378 | |
Current portion of lease liabilities | 170 | |
Lease liabilities | 2,357 | |
Software and Software Development Costs [Member] | ||
Lease Commitments | ||
Right-of-use assets | 3,567 | |
Current portion of lease liabilities | 3,164 | |
Lease liabilities | $ 500 | |
Minimum | ||
Lease Commitments | ||
Lease term | 10 years | |
Maximum | ||
Lease Commitments | ||
Lease term | 15 years | |
Accounting Standards Update 2016-02 [Member] | Restatement Adjustment [Member] | ||
Lease Commitments | ||
Right-of-use assets | $ 620,800 | |
Operating lease liability | $ 683,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Lease Maturity (Details) $ in Thousands | 12 Months Ended |
Dec. 26, 2019USD ($) | |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2020 | $ 122,303 |
2021 | 127,449 |
2022 | 120,091 |
2023 | 116,505 |
2024 | 113,019 |
Thereafter | 622,954 |
Total minimum lease payments | 1,222,321 |
Amount representing interest | 303,460 |
Operating Lease, Liability, Total | 918,861 |
Current portion of lease liabilities | 74,592 |
Long-term lease obligations | 844,269 |
Minimum lease payments for leases not yet commenced | 165,800 |
Cash paid during the period against operating lease liabilities | 112,800 |
Operating lease, right-of-use asset impairment | 4,100 |
Operating lease termination | $ 1,926 |
Debt - Summary of Long-term Deb
Debt - Summary of Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 26, 2019 | Dec. 27, 2018 |
Debt Instrument [Line Items] | ||
Total debt at par value | $ 145,500 | $ 149,000 |
Less: current maturities | 3,500 | |
Long-term debt maturities | 145,500 | 145,500 |
Less: unamortized discount and debt issuance costs | 2,894 | 3,666 |
Total long-term debt | $ 142,606 | 141,834 |
Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Interest rate at end of period, as a percent | 4.77% | |
Total debt at par value | $ 145,500 | $ 149,000 |
Wells Facility Revolving Line of Credit | ||
Debt Instrument [Line Items] | ||
Interest rate at end of period, as a percent | 4.25% |
Debt - Repayment (Details)
Debt - Repayment (Details) - USD ($) $ / shares in Units, $ in Thousands | May 02, 2017 | Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | Feb. 28, 2019 | Sep. 14, 2018 | May 29, 2018 | Nov. 20, 2017 | Jul. 25, 2017 |
Debt Instrument [Line Items] | |||||||||
Number of shares issued | 10,147,025 | ||||||||
Common stock, par value | $ 0.001 | ||||||||
Share price | $ 21 | $ 50.30 | $ 37.50 | $ 37.25 | $ 45.80 | $ 36 | $ 40 | ||
Net proceeds | $ 192,000 | ||||||||
Payments on term loans | 192,000 | $ 3,500 | $ 3,500 | $ 197,500 | |||||
Loss on extinguishment of debt | $ 5,442 | ||||||||
Term Loan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Payments on term loans | 192,000 | ||||||||
Loss on extinguishment of debt | $ 5,400 | ||||||||
Class A Common Stock | |||||||||
Debt Instrument [Line Items] | |||||||||
Common stock, par value | $ 0.001 | $ 0.001 |
Debt - Term Loan Facility (Deta
Debt - Term Loan Facility (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 26, 2019 | Dec. 27, 2018 | |
Debt Instrument [Line Items] | ||
Total debt at par value | $ 145,500 | $ 149,000 |
Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Total debt at par value | $ 145,500 | $ 149,000 |
Term Loan Facility | Base Rate [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate (as a percent) | 1.50% | |
Term Loan Facility | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate (as a percent) | 2.50% | |
Term Loan Facility | One Month LIBOR | ||
Debt Instrument [Line Items] | ||
Variable interest rate (as a percent) | 1.00% | |
Term Loan Facility | Federal Funds Rate [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate (as a percent) | 0.50% |
Debt - ABL Facility (Details)
Debt - ABL Facility (Details) - ABL Facility $ in Thousands | 12 Months Ended |
Dec. 26, 2019USD ($) | |
Line of Credit Facility [Line Items] | |
Borrowing capacity | $ 300,000 |
Eligible percent of trade receivables | 85.00% |
Available borrowing capacity | $ 279,488 |
Outstanding letters of credit | 20,512 |
Debt payment due in 2023 | 145,500 |
Standby Letters of Credit [Member] | |
Line of Credit Facility [Line Items] | |
Borrowing capacity | $ 30,000 |
Base Rate [Member] | Minimum | |
Line of Credit Facility [Line Items] | |
Variable interest rate (as a percent) | 0.25% |
Base Rate [Member] | Maximum | |
Line of Credit Facility [Line Items] | |
Variable interest rate (as a percent) | 0.50% |
London Interbank Offered Rate (LIBOR) [Member] | Minimum | |
Line of Credit Facility [Line Items] | |
Variable interest rate (as a percent) | 1.25% |
London Interbank Offered Rate (LIBOR) [Member] | Maximum | |
Line of Credit Facility [Line Items] | |
Variable interest rate (as a percent) | 1.50% |
Federal Funds Rate [Member] | |
Line of Credit Facility [Line Items] | |
Variable interest rate (as a percent) | 0.50% |
One Month LIBOR | |
Line of Credit Facility [Line Items] | |
Variable interest rate (as a percent) | 1.00% |
Debt - Covenants, Deferred Debt
Debt - Covenants, Deferred Debt Issuance Cost And Original Issue Discount (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Debt Instrument [Line Items] | |||
Amortization expense | $ 1,100 | $ 1,045 | $ 1,205 |
ABL Facility | |||
Debt Instrument [Line Items] | |||
Percentage usage of facility to trigger covenant | 90.00% | ||
Deferred debt issuance costs | $ 574 | 902 | |
Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Deferred debt issuance costs | $ 2,894 | ||
Prior Term Loan Facility And GCI Facility | |||
Debt Instrument [Line Items] | |||
Deferred debt issuance costs | $ 3,666 |
Debt - Fair Value of Debt (Deta
Debt - Fair Value of Debt (Details) - USD ($) $ in Thousands | Dec. 26, 2019 | Dec. 27, 2018 |
Debt Instrument [Line Items] | ||
Total debt at par value | $ 145,500 | $ 149,000 |
Less: unamortized discount and debt issuance costs | 2,894 | 3,666 |
Net carrying amount | 142,606 | 145,334 |
Level 3 | ||
Debt Instrument [Line Items] | ||
Fair value | $ 145,136 | $ 147,883 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock and Conversion Features (Details) | 12 Months Ended |
Dec. 26, 2019item | |
Conversion of Stock [Line Items] | |
Number of classes of common stock | 3 |
Class A Common Stock | |
Conversion of Stock [Line Items] | |
Votes per share held | 1 |
Class B Common Stock | |
Conversion of Stock [Line Items] | |
Votes per share held | 0 |
Class C Common Stock | |
Conversion of Stock [Line Items] | |
Votes per share held | 0 |
Stockholders' Equity - Stock In
Stockholders' Equity - Stock Incentive Plans (Details) - $ / shares | May 02, 2017 | Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | Feb. 28, 2019 | Sep. 14, 2018 | May 29, 2018 | Nov. 20, 2017 | Jul. 25, 2017 | Dec. 29, 2016 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of options granted | 157,904 | 926,775 | 1,339,668 | ||||||||
Share price | $ 21 | $ 50.30 | $ 37.50 | $ 37.25 | $ 45.80 | $ 36 | $ 40 | ||||
2011 Stock Option Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Shares of stock authorized under the plan | 12,520,407 | 10,780,970 | |||||||||
Shares available for grant | 179,575 | 104,269 | |||||||||
2017 Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Shares of stock authorized under the plan | 5,000,000 | ||||||||||
Shares available for grant | 2,806,549 | 2,850,768 | |||||||||
Number of options granted | 1,254,465 | ||||||||||
Number of restricted shares granted | 15,475 | ||||||||||
Share price | $ 21 |
Stockholders' Equity - Secondar
Stockholders' Equity - Secondary Offerings (Details) - $ / shares | Feb. 28, 2019 | Sep. 14, 2018 | May 29, 2018 | Nov. 20, 2017 | Jul. 25, 2017 | Dec. 26, 2019 | May 02, 2017 |
Stockholders' Equity | |||||||
Number of shares sold by stockholders | 10,000,000 | 11,500,000 | 10,000,000 | 7,475,000 | 10,718,550 | ||
Share price | $ 37.50 | $ 37.25 | $ 45.80 | $ 36 | $ 40 | $ 50.30 | $ 21 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||||||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | Feb. 28, 2019 | Sep. 14, 2018 | May 29, 2018 | Nov. 20, 2017 | Jul. 25, 2017 | May 02, 2017 | Dec. 29, 2016 | |
Options | ||||||||||
Outstanding at the beginning of period | 9,852,828 | 11,254,086 | 11,979,111 | |||||||
Granted | 157,904 | 926,775 | 1,339,668 | |||||||
Exercised | (3,740,749) | (2,069,195) | (1,828,339) | |||||||
Forfeited or expired | (232,904) | (258,838) | (236,354) | |||||||
Outstanding at the end of period | 6,037,079 | 9,852,828 | 11,254,086 | |||||||
Weighted Average Exercise Price | ||||||||||
Outstanding at the beginning of period | $ 10.11 | $ 7.28 | $ 5.34 | |||||||
Granted | 42.42 | 34.07 | 21.68 | |||||||
Exercised | 5.03 | 5.09 | 4.85 | |||||||
Forfeited or expired | 21.97 | 13.12 | 9.17 | |||||||
Outstanding at the end of period | $ 13.64 | $ 10.11 | $ 7.28 | |||||||
Additional Disclosures | ||||||||||
Options Exercisable at End of Year | 3,673,657 | 6,409,257 | 7,448,532 | 8,151,056 | ||||||
Weighted Average Exercise Price of Exercisable Options | $ 8.25 | $ 5.21 | $ 4.52 | $ 4.20 | ||||||
Weighted Average Fair Value/Share of Options Granted During the Year | 20.38 | $ 15.63 | $ 9.20 | |||||||
Share price | $ 50.30 | $ 37.50 | $ 37.25 | $ 45.80 | $ 36 | $ 40 | $ 21 | |||
Options exercised, intrinsic value | $ 146,625 | $ 87,151 | ||||||||
Options outstanding, aggregate intrinsic value | $ 221,303 | |||||||||
Options outstanding, weighted-average remaining contractual life | 5 years 4 months 24 days | |||||||||
Options exercisable, aggregate intrinsic value | $ 154,483 | |||||||||
Options exercisable, weighted-average remaining contractual life | 4 years | |||||||||
Stock options | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Contractual term | 10 years | |||||||||
Fair Value Assumptions | ||||||||||
Risk free interest rate | 2.06% | 3.05% | 2.06% | |||||||
Expected volatility | 45.00% | 42.00% | 39.00% | |||||||
Expected life (in years) | 6 years 8 months 4 days | 6 years 3 months 14 days | 6 years 6 months | |||||||
Dividend yield | 0.00% | |||||||||
Additional Disclosures | ||||||||||
Unrecognized compensation cost amount | $ 19,126 | |||||||||
Unrecognized compensation cost period for recognition | 2 years 8 months 12 days | |||||||||
Stock options | Maximum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Period of vesting provision | 5 years | |||||||||
Stock options | Minimum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Period of vesting provision | 1 year |
Stockholders' Equity - Restrict
Stockholders' Equity - Restricted Stock (Details) - Restricted Stock - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Restricted Stock | |||
Granted | 24,207 | 10,165 | 15,475 |
Period of vesting provision | 4 years | ||
Aggregate fair value | $ 1,863 | $ 566 | $ 767 |
Shares outstanding | 37,032 | 21,775 | 15,475 |
Unrecognized compensation cost amount | $ 1,093 | $ 489 | $ 270 |
Unrecognized compensation cost period for recognition | 2 years 10 months 24 days | 2 years | 3 years 3 months 18 days |
Vesting on third anniversary | |||
Restricted Stock | |||
Vesting percentage | 25.00% | ||
Vesting on fourth anniversary | |||
Restricted Stock | |||
Vesting percentage | 75.00% | ||
Minimum | |||
Restricted Stock | |||
Period of vesting provision | 2 years | ||
Maximum | |||
Restricted Stock | |||
Period of vesting provision | 4 years |
Stockholders' Equity - ESPP (De
Stockholders' Equity - ESPP (Details) - USD ($) $ / shares in Units, $ in Thousands | May 17, 2018 | Dec. 26, 2019 | Dec. 27, 2018 | May 02, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock, par value | $ 0.001 | |||
Shares issued under employee stock plan (in shares) | 104,363 | |||
Shares issued under employee stock plan | $ 2,445 | |||
Class A Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock, par value | $ 0.001 | $ 0.001 | ||
Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair market value measurement period | 6 months | |||
Stock purchase plan, expense | $ 523 | $ 333 | ||
Employee Stock Purchase Plan [Member] | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Purchase price, as a percentage of fair market value | 90.00% | |||
Employee Stock Purchase Plan [Member] | Class A Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares of stock authorized under the plan | 1,500,000 | |||
Common stock, par value | $ 0.001 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2019 | Sep. 26, 2019 | Jun. 27, 2019 | Mar. 28, 2019 | Dec. 27, 2018 | Sep. 27, 2018 | Jun. 28, 2018 | Mar. 29, 2018 | Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Earnings Per Share | |||||||||||
Net income | $ 35,341 | $ 40,974 | $ 43,596 | $ 30,720 | $ 17,902 | $ 26,568 | $ 39,846 | $ 31,871 | $ 150,631 | $ 116,187 | $ 102,788 |
Basic weighted average shares outstanding | 99,435 | 96,770 | 90,951 | ||||||||
Dilutive effect of share based awards | 5,527 | 7,791 | 8,709 | ||||||||
Diluted weighted average shares outstanding | 104,962 | 104,561 | 99,660 | ||||||||
Basic earnings per share | $ 0.35 | $ 0.41 | $ 0.44 | $ 0.31 | $ 0.18 | $ 0.27 | $ 0.41 | $ 0.33 | $ 1.51 | $ 1.20 | $ 1.13 |
Diluted earnings per share | $ 0.34 | $ 0.39 | $ 0.42 | $ 0.29 | $ 0.17 | $ 0.25 | $ 0.38 | $ 0.30 | $ 1.44 | $ 1.11 | $ 1.03 |
Earnings Per Share - Dilutive e
Earnings Per Share - Dilutive effects of share based awards (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares excluded from the computation of diluted earnings (per share) | 971 | 298 | 849 |
Selected Quarterly Financial _3
Selected Quarterly Financial Information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2019 | Sep. 26, 2019 | Jun. 27, 2019 | Mar. 28, 2019 | Dec. 27, 2018 | Sep. 27, 2018 | Jun. 28, 2018 | Mar. 29, 2018 | Dec. 26, 2019 | Dec. 27, 2018 | Dec. 28, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net Sales | $ 527,002 | $ 521,093 | $ 520,311 | $ 477,050 | $ 436,739 | $ 435,882 | $ 434,279 | $ 402,948 | $ 2,045,456 | $ 1,709,848 | $ 1,384,767 |
Gross Profit | 230,029 | 213,788 | 217,823 | 201,374 | 181,018 | 178,226 | 177,638 | 165,386 | 863,014 | 702,268 | 572,564 |
Net income | $ 35,341 | $ 40,974 | $ 43,596 | $ 30,720 | $ 17,902 | $ 26,568 | $ 39,846 | $ 31,871 | $ 150,631 | $ 116,187 | $ 102,788 |
Basic earnings per share | $ 0.35 | $ 0.41 | $ 0.44 | $ 0.31 | $ 0.18 | $ 0.27 | $ 0.41 | $ 0.33 | $ 1.51 | $ 1.20 | $ 1.13 |
Diluted earnings per share | $ 0.34 | $ 0.39 | $ 0.42 | $ 0.29 | $ 0.17 | $ 0.25 | $ 0.38 | $ 0.30 | $ 1.44 | $ 1.11 | $ 1.03 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Feb. 14, 2020 | Dec. 26, 2019 |
ABL Facility | ||
Subsequent Event [Line Items] | ||
Borrowing capacity | $ 300 | |
ABL Facility | Base Rate [Member] | Minimum | ||
Subsequent Event [Line Items] | ||
Variable interest rate (as a percent) | 0.25% | |
ABL Facility | Base Rate [Member] | Maximum | ||
Subsequent Event [Line Items] | ||
Variable interest rate (as a percent) | 0.50% | |
ABL Facility | London Interbank Offered Rate (LIBOR) [Member] | Minimum | ||
Subsequent Event [Line Items] | ||
Variable interest rate (as a percent) | 1.25% | |
ABL Facility | London Interbank Offered Rate (LIBOR) [Member] | Maximum | ||
Subsequent Event [Line Items] | ||
Variable interest rate (as a percent) | 1.50% | |
ABL Facility | Letter Of Credit Fees For Commercial Letters Of Credit [Member] | Minimum | ||
Subsequent Event [Line Items] | ||
Variable interest rate (as a percent) | 0.75% | |
ABL Facility | Letter Of Credit Fees For Commercial Letters Of Credit [Member] | Maximum | ||
Subsequent Event [Line Items] | ||
Variable interest rate (as a percent) | 1.00% | |
ABL Facility | One Month LIBOR | ||
Subsequent Event [Line Items] | ||
Variable interest rate (as a percent) | 1.00% | |
ABL Facility | Federal Funds Rate [Member] | ||
Subsequent Event [Line Items] | ||
Variable interest rate (as a percent) | 0.50% | |
Term Loan Facility | Base Rate [Member] | ||
Subsequent Event [Line Items] | ||
Variable interest rate (as a percent) | 1.50% | |
Term Loan Facility | Base Rate [Member] | Minimum | ||
Subsequent Event [Line Items] | ||
Variable interest rate (as a percent) | 1.50% | |
Term Loan Facility | Base Rate [Member] | Maximum | ||
Subsequent Event [Line Items] | ||
Variable interest rate (as a percent) | 1.75% | |
Term Loan Facility | Eurodollar [Member] | Minimum | ||
Subsequent Event [Line Items] | ||
Variable interest rate (as a percent) | 2.50% | |
Term Loan Facility | Eurodollar [Member] | Maximum | ||
Subsequent Event [Line Items] | ||
Variable interest rate (as a percent) | 2.75% | |
Term Loan Facility | London Interbank Offered Rate (LIBOR) [Member] | ||
Subsequent Event [Line Items] | ||
Variable interest rate (as a percent) | 2.50% | |
Term Loan Facility | One Month LIBOR | ||
Subsequent Event [Line Items] | ||
Variable interest rate (as a percent) | 1.00% | |
Term Loan Facility | Federal Funds Rate [Member] | ||
Subsequent Event [Line Items] | ||
Variable interest rate (as a percent) | 0.50% | |
Subsequent Event | ABL Facility | ||
Subsequent Event [Line Items] | ||
Borrowing capacity | $ 400 | |
Subsequent Event | ABL Facility | Base Rate [Member] | ||
Subsequent Event [Line Items] | ||
Variable interest rate (as a percent) | 0.25% | |
Subsequent Event | ABL Facility | London Interbank Offered Rate (LIBOR) [Member] | ||
Subsequent Event [Line Items] | ||
Variable interest rate (as a percent) | 1.25% | |
Variable rate floor (as a percent) | 0.00% | |
Subsequent Event | ABL Facility | Letter Of Credit Fees For Commercial Letters Of Credit [Member] | ||
Subsequent Event [Line Items] | ||
Variable interest rate (as a percent) | 0.75% | |
Subsequent Event | ABL Facility, Accordion Feature [Member] | ||
Subsequent Event [Line Items] | ||
Borrowing capacity | $ 100 | |
Subsequent Event | Term Loan Facility | ||
Subsequent Event [Line Items] | ||
Borrowing capacity | $ 144.6 | |
Subsequent Event | Term Loan Facility | Base Rate [Member] | Minimum | ||
Subsequent Event [Line Items] | ||
Variable interest rate (as a percent) | 1.00% | |
Subsequent Event | Term Loan Facility | Base Rate [Member] | Maximum | ||
Subsequent Event [Line Items] | ||
Variable interest rate (as a percent) | 1.25% | |
Subsequent Event | Term Loan Facility | Eurodollar [Member] | ||
Subsequent Event [Line Items] | ||
Variable rate floor (as a percent) | 0.00% | |
Subsequent Event | Term Loan Facility | Eurodollar [Member] | Minimum | ||
Subsequent Event [Line Items] | ||
Variable interest rate (as a percent) | 2.00% | |
Subsequent Event | Term Loan Facility | Eurodollar [Member] | Maximum | ||
Subsequent Event [Line Items] | ||
Variable interest rate (as a percent) | 2.25% | |
Subsequent Event | Term Loan Facility With Accordion [Member] | ||
Subsequent Event [Line Items] | ||
Borrowing capacity | $ 270 | |
Borrowing capacity as percentage of EBITDA | 100.00% |