Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 26, 2020 | Aug. 03, 2020 | |
Entity Information [Line Items] | ||
Entity File Number | 001-35588 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-3561876 | |
Title of 12(b) Security | Common stock, par value $.01 per share | |
Trading Symbol | FRG | |
Entity Registrant Name | Franchise Group, Inc. | |
Entity Address, Address Line One | 2387 Liberty Way | |
Entity Address, City or Town | Virginia Beach, | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 23456 | |
City Area Code | 757) | |
Local Phone Number | 493-8855 | |
Entity Central Index Key | 0001528930 | |
Document Type | 10-Q | |
Document Annual Report | true | |
Document Period End Date | Sep. 26, 2020 | |
Document Transition Report | false | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-26 | |
Entity Filer Category | Accelerated Filer | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | Yes | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Security Exchange Name | NASDAQ | |
Common Stock [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 40,087,792 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 26, 2020 | Dec. 28, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 179,932,000 | $ 39,581,000 |
Receivables: | ||
interest receivable, current, net | 2,289 | 3,132 |
Total current receivables, net | 84,277,000 | 79,693,000 |
Income taxes receivable | 27,014 | 3,356 |
Inventory, Net | 319,545,000 | 300,312,000 |
Other current assets | 22,845,000 | 20,267,000 |
Total current assets | 606,599,000 | 439,853,000 |
Property, equipment, and software, net | 143,512,000 | 150,147,000 |
Accounts and Financing Receivable, after Allowance for Credit Loss, Noncurrent | 16,095,000 | 18,638,000 |
Goodwill | 469,788,000 | 134,301,000 |
Operating Lease, Right-of-Use Asset | 516,398,000 | 462,610,000 |
Other intangible assets, net | 145,478,000 | 77,590,000 |
Other assets | 14,634,000 | 15,406,000 |
Total assets | 1,912,504,000 | 1,298,545,000 |
Current liabilities: | ||
Current installments of long-term obligations | 112,374,000 | 218,384,000 |
Operating Lease, Liability, Current | 131,685,000 | 107,680,000 |
Accounts payable and accrued expenses | 257,387,000 | 158,995,000 |
Deferred revenue - current | 36,461,000 | 16,409,000 |
Total current liabilities | 537,907,000 | 501,468,000 |
Long-term Debt and Lease Obligation | 412,613,000 | 394,307,000 |
Total liabilities | 1,503,972,000 | 1,146,784,000 |
Equity: | ||
Preferred stock | 0.01 | |
Additional paid-in capital | 386,030,000 | 108,339,000 |
Accumulated other comprehensive loss, net of taxes | (1,838,000) | (1,538,000) |
Retained earnings | 23,927,000 | 18,388,000 |
Total equity attributable to Liberty Tax, Inc. | 408,532,000 | 125,391,000 |
Noncontrolling Interest in Variable Interest Entity | 0 | 26,370,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 408,532,000 | 151,761,000 |
Total liabilities and equity | 1,912,504,000 | 1,298,545,000 |
Long-term Debt, Excluding Current Maturities | 516,353,000 | 245,236,000 |
Other Liabilities, Noncurrent | 37,099,000 | 5,773,000 |
Special voting preferred stock | ||
Equity: | ||
Preferred stock | 12,000 | 19,000 |
Class A common stock | ||
Equity: | ||
Common stock | 401,000 | 183,000 |
Total equity attributable to Liberty Tax, Inc. | $ 401,000 | $ 183,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 26, 2020 | Dec. 28, 2019 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 25,701 | $ 22,467 |
Class A common stock | ||
Common Stock, Value, Issued | $ 401 | $ 183 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 30, 2019 | Sep. 26, 2020 | Sep. 30, 2019 | |
Class of Stock [Line Items] | ||||
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic | $ 0 | $ (8,578) | $ 2,090 | $ (8,578) |
Earnings Per Share, Basic | $ (0.22) | $ (0.93) | $ 0.89 | $ 1.23 |
Weighted Average Number of Shares Outstanding, Diluted | 39,692,384 | 15,997,041 | 32,961,905 | 14,770,973 |
Cost of Goods and Services Sold | $ 303,475 | $ 3,486 | $ 881,782 | $ 3,486 |
Cost of Goods Sold, Leases | 5,877 | 3,048 | 17,327 | 3,048 |
Revenues: | ||||
Lease Income | 17,404 | 8,079 | 51,000 | 8,079 |
Total revenues | 550,992 | 18,920 | 1,656,185 | 138,578 |
Operating expenses: | ||||
Selling, general, and administrative expenses | 228,194 | 40,481 | 697,670 | 110,928 |
Depreciation, amortization and impairment charges | 17,462 | 4,467 | 51,254 | 12,239 |
Total operating expenses | 531,669 | 43,967 | 1,579,452 | 114,414 |
Loss from operations | 19,323 | (25,047) | 76,733 | 24,164 |
Other income (expense): | ||||
Foreign currency transaction gain | (1,229) | (1) | (5,293) | (101) |
Interest expense | (26,264) | (2,755) | (83,642) | (4,225) |
Loss before income taxes | (8,170) | (27,803) | (12,202) | 19,838 |
Income tax benefit | 427 | (4,339) | (43,561) | 10,367 |
Net loss | $ (8,597) | $ (23,464) | $ 31,359 | $ 9,471 |
Weighted Average Number of Shares Outstanding, Basic | 39,692,384 | 15,997,041 | 32,679,576 | 14,712,297 |
Net loss per share of common stock: | ||||
Earnings Per Share, Diluted | $ (0.22) | $ (0.93) | $ 0.88 | $ 1.22 |
Common Class A [Member] | ||||
Class of Stock [Line Items] | ||||
Net Income (Loss) Available to Common Stockholders, Basic | $ (8,766) | $ (14,886) | $ 29,100 | $ 18,049 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 28,000 | 50,000 | ||
Undistributed Earnings, Basic | $ (8,597) | $ (14,886) | $ 29,269 | $ 18,049 |
Weighted Average Number of Shares Outstanding, Diluted | 14,770,973 | 32,961,905 | ||
Other income (expense): | ||||
net income (loss) available to common shareholders, basic and diluted | $ (23,464) | |||
Weighted Average Number of Shares Outstanding, Basic | 32,679,576 | 14,712,297 | ||
Net loss per share of common stock: | ||||
Earnings Per Share, Basic and Diluted | $ (0.93) | |||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 39,692,384 | 15,997,041 | ||
Service [Member] | ||||
Class of Stock [Line Items] | ||||
Cost of Goods and Services Sold | $ 678 | $ 0 | $ 2,135 | $ 0 |
Revenues: | ||||
Total revenues | 33,126 | 10,284 | 164,508 | 129,942 |
Product [Member] | ||||
Class of Stock [Line Items] | ||||
Cost of Goods and Services Sold | 296,920 | 438 | 862,320 | 438 |
Revenues: | ||||
Total revenues | $ 500,462 | $ 557 | $ 1,440,677 | $ 557 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 30, 2019 | Sep. 26, 2020 | Sep. 30, 2019 | |
Other Comprehensive Income (Loss), Net of Tax | $ 265 | $ 20 | $ (300) | $ 307 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | (39) | (21) | (119) | (75) |
Net loss | 8,597 | 23,464 | (31,359) | (9,471) |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent | 303 | 41 | (188) | 382 |
Other Comprehensive Income Loss From Forward Contracts Net of Tax | 1 | 0 | 7 | 0 |
Other comprehensive gain (loss) | (8,332) | (14,875) | 29,144 | 18,347 |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 0 | (8,569) | 1,915 | (8,569) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | $ (8,332) | $ (23,444) | $ 31,059 | $ 9,778 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Stockholders Equity Statement - USD ($) shares in Thousands | Total | Common Class A [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total Equity [Member] | Noncontrolling Interest [Member] | Buddy's [Member] | Buddy's [Member]Preferred Stock [Member] | Buddy's [Member]Additional Paid-in Capital [Member] | Buddy's [Member]Total Equity [Member] | Buddy's Partners [Member] | Buddy's Partners [Member]Preferred Stock [Member] | Buddy's Partners [Member]Additional Paid-in Capital [Member] | Buddy's Partners [Member]Total Equity [Member] |
Shares, Outstanding | 14,044 | |||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 62,241,000 | |||||||||||||||
Stockholders' Equity Attributable to Parent | $ 140,000 | $ 12,091,000 | $ (2,019,000) | $ 52,029,000 | $ 62,241,000 | |||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 0 | |||||||||||||||
Noncontrolling Interest in Period, Value | 64,142,000 | (64,142,000) | (64,142,000) | |||||||||||||
Net Income (Loss) Attributable to Parent | 9,471,000 | 18,049,000 | 18,049,000 | |||||||||||||
Stock Issued During Period, Shares, Acquisitions | 114 | |||||||||||||||
Stock Issued During Period, Value, Acquisitions | 1,214,000 | $ 1,000 | 1,213,000 | 1,214,000 | ||||||||||||
Adjustment to APIC, Share-based Compensation, Requisite Service Period Recognition, Shares | 51 | |||||||||||||||
Stock Issued During Period, Value, Issued for Services | 1,320,000 | $ 1,000 | 1,319,000 | 1,320,000 | ||||||||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax and Reclassification Adjustment, Attributable to Parent | 307,000 | 298,000 | 298,000 | 9,000 | ||||||||||||
Acquisition, Common stock, issued during period, shares | 2,083,000 | |||||||||||||||
Acquisition, Common stock, issued during period, value | 25,000,000 | $ 21,000 | 24,979,000 | 25,000,000 | ||||||||||||
preferred stock, issued during period, value | $ 97,000,000 | $ 16,000 | $ 96,984,000 | $ 97,000,000 | $ 16,200,000 | $ 3,000 | $ 16,197,000 | $ 16,200,000 | ||||||||
preferred stock, issued during period, shares | 1,617,000 | 270,000 | ||||||||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | 9,778,000 | |||||||||||||||
Other Comprehensive Income (Loss), Net of Tax | 307,000 | |||||||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 9,000 | |||||||||||||||
Noncontrolling Interest in Period, Value | 64,142,000 | (64,142,000) | (64,142,000) | |||||||||||||
Net Income (Loss) Attributable to Parent | (23,464,000) | (14,886,000) | (14,886,000) | |||||||||||||
Stock Issued During Period, Shares, Acquisitions | 100 | |||||||||||||||
Stock Issued During Period, Value, Acquisitions | 1,061,000 | $ 1,000 | 1,060,000 | 1,061,000 | ||||||||||||
Stock Issued During Period, Value, Issued for Services | 292,000 | 292,000 | 292,000 | |||||||||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax and Reclassification Adjustment, Attributable to Parent | 20,000 | 11,000 | 11,000 | |||||||||||||
Acquisition, Common stock, issued during period, shares | 2,083,000 | |||||||||||||||
Acquisition, Common stock, issued during period, value | 25,000,000 | $ 21,000 | 24,979,000 | 25,000,000 | ||||||||||||
preferred stock, issued during period, value | $ 97,000,000 | 16,000 | $ 96,984,000 | $ 97,000,000 | $ 16,200,000 | 3,000 | $ 16,197,000 | $ 16,200,000 | ||||||||
preferred stock, issued during period, shares | $ 1,617,000 | $ 270,000 | ||||||||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | (23,444,000) | |||||||||||||||
Other Comprehensive Income (Loss), Net of Tax | 20,000 | |||||||||||||||
Shares, Outstanding | 16,283 | 1,887 | ||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 212,991,000 | |||||||||||||||
Stockholders' Equity Attributable to Parent | $ 163,000 | $ 19,000 | 88,553,000 | (1,721,000) | 70,404,000 | 157,418,000 | ||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 55,573,000 | |||||||||||||||
Shares, Outstanding | 18,250 | 1,887 | ||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 151,761,000 | |||||||||||||||
Stockholders' Equity Attributable to Parent | 125,391,000 | $ 183,000 | $ 19,000 | 108,339,000 | (1,538,000) | 18,388,000 | 125,391,000 | |||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 26,370,000 | |||||||||||||||
Acquisition, Common stock, issued during period, shares | 4,830,000 | |||||||||||||||
Acquisition, Common stock, issued during period, value | 105,921,000 | 48,000 | 105,873,000 | 105,921,000 | ||||||||||||
Preferred Stock, Converted to Common, Value | (9,953,000) | (19,000) | (10,028,000) | (9,953,000) | ||||||||||||
Noncontrolling Interest in Period, Value | (2,358,000) | 23,744,000 | (175,000) | |||||||||||||
Net Income (Loss) Attributable to Parent | 31,359,000 | 29,269,000 | 29,269,000 | 2,090,000 | ||||||||||||
Common Stock, Preferred converted, Value | $ 94,000 | |||||||||||||||
Dividends, Preferred Stock, Cash | (169,000) | (169,000) | (169,000) | |||||||||||||
Adjustment to Stockholder Equity | 2,358,000 | 2,358,000 | (2,358,000) | |||||||||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | 3.7 | |||||||||||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax and Reclassification Adjustment, Attributable to Parent | (300,000) | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 50 | |||||||||||||||
Acquisition Costs, Period Cost, attributable to parent | 23,569,000 | |||||||||||||||
Acquisition Costs, Period Cost, Attributable to Noncontrolling Interest | (25,927,000) | |||||||||||||||
Stock Issued During Period, Value, Stock Options Exercised | 521,000 | $ 1,000 | 520,000 | 521,000 | ||||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | (125,000) | |||||||||||||||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | (125,000) | |||||||||||||||
Adjustment to APIC, Share-based Compensation, Requisite Service Period Recognition | 6,209,000 | 31,000 | 6,209,000 | 6,209,000 | ||||||||||||
Acquisition, Common stock, issued during period, shares | 12,292,000 | |||||||||||||||
Acquisition, Common stock, issued during period, value | 229,015,000 | $ 123,000 | 228,892,000 | 229,015,000 | ||||||||||||
preferred stock, issued during period, value | 28,366,000 | 12,000 | 28,354,000 | 28,366,000 | ||||||||||||
preferred stock, issued during period, shares | $ 1,200,000 | |||||||||||||||
Dividends | (25,919,000) | (25,919,000) | ||||||||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | 31,059,000 | (175,000) | ||||||||||||||
Other Comprehensive Income (Loss), Net of Tax | (300,000) | |||||||||||||||
Shares, Outstanding | 35,186 | 0 | ||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 290,709,000 | |||||||||||||||
Stockholders' Equity Attributable to Parent | $ 352,000 | $ 0 | 249,525,000 | (2,103,000) | 42,935,000 | 290,709,000 | ||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 0 | |||||||||||||||
Dividends Payable | (10,242,000) | |||||||||||||||
Shares, Outstanding | 40,057 | 1,200 | ||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 408,532,000 | |||||||||||||||
Common Stock, Preferred converted, Shares | 9,434 | |||||||||||||||
Preferred Stock, Converted to Common, Shares | (1,887) | |||||||||||||||
Stockholders' Equity Attributable to Parent | $ 408,532,000 | $ 401,000 | $ 12,000 | $ 386,030,000 | $ (1,838,000) | $ 23,927,000 | 408,532,000 | |||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 0 | |||||||||||||||
Dividends Payable | $ (25,919,000) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows | 9 Months Ended | |
Sep. 26, 2020USD ($) | Sep. 30, 2019USD ($) | |
Payments to Acquire Software | $ 3,633,000 | $ 478,000 |
Payment of Financing and Stock Issuance Costs | 31,013,000 | 0 |
Proceeds from Issuance of Secured Debt | 0 | |
Taxes Receivable Agreement, Other long Term Liabilities | 17,156,000 | |
Restricted Cash, Noncurrent | 4,961,000 | |
Restricted Cash and Cash Equivalents | 184,893,000 | |
Operating Activities | ||
Net loss | 31,359,000 | 9,471,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for doubtful accounts | 3,412,000 | 6,401,000 |
Depreciation, amortization and impairment charges | 51,254,000 | 12,239,000 |
Amortization of Debt Issuance Costs | 28,703,000 | 1,013,000 |
Gain (Loss) on Disposition of Other Assets | 75,000 | 703,000 |
Stock-based compensation expense - equity awards | 6,294,000 | 1,339,000 |
Gain on bargain purchases and sales of Company-owned offices | 1,761,000 | 438,000 |
Equity in loss of affiliate | 7,851,000 | 706,000 |
Increase (Decrease) in Income Taxes Payable | (23,721,000) | 8,977,000 |
Changes in other assets and liabilities | ||
Increase (Decrease) in Deferred Revenue | 5,649,000 | (3,394,000) |
Increase (Decrease) in Accounts and Other Receivables | (2,223,000) | 10,054,000 |
Increase (Decrease) in Other Current Assets | 3,971,000 | (1,076,000) |
Increase (Decrease) in Accounts Payable and Accrued Liabilities | 38,884,000 | 7,693,000 |
Increase (Decrease) in Inventories | 79,967,000 | 579,000 |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | 229,714,000 | 54,267,000 |
Deferred revenue | ||
Net cash provided by operating activities | (30,368,000) | (51,484,000) |
Investing Activities | 50,064,000 | 66,303,000 |
Issuance of operating loans to franchisees and ADs | (4,830,000) | (2,232,000) |
Proceeds from Sale of Intangible Assets | 1,118,000 | 22,000 |
Purchases of Company-owned offices, AD rights, and acquired customer lists | (26,702,000) | (1,183,000) |
Proceeds from sale of Company-owned offices and AD rights | (362,667,000) | (15,017,000) |
Payments to Acquire Businesses, Net of Cash Acquired | (353,423,000) | (26,443,000) |
Proceeds from Sale of Property, Plant, and Equipment | 1,474,000 | 0 |
Acquisition of business, net of cash acquired | ||
Proceeds from Stock Options Exercised | 520,000 | 1,214,000 |
Payments of Ordinary Dividends | (19,167,000) | 0 |
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (4,716,000) | 0 |
Financing Activities | (455,811,000) | (16,213,000) |
Proceeds from the exercise of stock options | 174,665,000 | 121,874,000 |
Repurchase of common stock and tax impact of stock compensation | (218,260,000) | (186,099,000) |
Proceeds from Issuance of Debt | 586,000,000 | 105,000,000 |
Payments of Debt Issuance Costs | (16,673,000) | 4,382,000 |
Payment, Tax Withholding, Share-based Payment Arrangement | 85,000 | 20,000 |
Borrowings under revolving credit facility | 272,842,000 | 46,374,000 |
Proceeds from Issuance of Common Stock | 198,003,000 | 25,000,000 |
Proceeds from Issuance of Preferred Stock and Preference Stock | 28,366,000 | 0 |
Repayments under revolving credit facility | (142,000) | 111,000 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 139,747,000 | 85,735,000 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 184,893,000 | |
Issuance of debt | 179,932,000 | |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest, net of capitalized interest of $4 and $3, respectively | 944,000 | 84,000 |
Cash paid for taxes, net of refunds | $ 41,226,000 | $ 1,484,000 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 9 Months Ended |
Sep. 26, 2020 | |
Accounting Policies [Abstract] | |
Organization and Significant Accounting Policies | Organization and Significant Accounting Policies Description of Business Franchise Group, Inc. (the "Company"), a Delaware corporation, is a franchisor, operator and acquirer of franchised and franchisable businesses that it believes it can scale using its operating expertise. On July 10, 2019, the Company formed Franchise Group New Holdco, LLC (“New Holdco”), which completed the acquisition of Buddy's Newco, LLC ("Buddy's"). On October 23, 2019, the Company completed the acquisition of the Sears Outlet ("Sears Outlet") business from Sears Hometown and Outlet Stores, Inc. (subsequently rebranded as American Freight Outlet). On December 16, 2019, the Company completed its acquisition of The Vitamin Shoppe, Inc. ("Vitamin Shoppe"). On February 14, 2020, the Company completed its acquisition of the American Freight Group, Inc. ("American Freight") as described in “Note 2. Acquisitions”. New Holdco holds all of the Company’s operating subsidiaries. Segment Information The Company currently operates in four reportable segments: Liberty Tax, Buddy’s, Vitamin Shoppe and American Freight. Sears Outlet, which was rebranded as American Freight Outlet following the acquisition of American Freight, is included in the American Freight segment. The Liberty Tax segment provides income tax services in the United States of America (the "U.S.") and Canada. The Buddy's segment is a specialty retailer engaged in the business of leasing and selling consumer electronics, residential furniture, appliances and household accessories. The Vitamin Shoppe segment is an omni-channel specialty retailer and wellness lifestyle company with the mission of providing customers with the most trusted products, guidance and services to help them become their best selves. The Vitamin Shoppe segment offers a comprehensive assortment of nutritional solutions, including vitamins, minerals, specialty supplements, herbs, sports nutrition, homeopathic remedies, green living products, and natural beauty aids through proprietary brands. The American Freight segment operates under the American Freight and American Freight Outlet banners. American Freight is a retail chain offering brand-name furniture, mattresses, appliances and home accessories at discount prices. American Freight provides in-store and online access to purchase new, one-of-a-kind, out-of-box, discontinued, obsolete, reconditioned, overstocked, scratched and dented household appliances and unbranded furniture and mattresses at value prices. Principles of Consolidation The Company consolidates any entities in which it has a controlling interest, the usual condition of which is ownership of a majority voting interest. Prior to April 1, 2020, the Company was the sole managing member of New Holdco and possessed ownership of more than 50 percent of the outstanding voting units. As a result, the Company consolidated the financial results of New Holdco and reported a non-controlling interest that represented the interests of the New Holdco units not held by the Company. As of April 1, 2020, the Company redeemed all outstanding New Holdco units for shares of common stock of the Company and now has an 100% interest in New Holdco. The Company does not possess any ownership interests in franchisee entities; however, the Company may provide financial support to franchisee entities. Because the Company's franchise arrangements provide franchisee entities the power to direct the activities that most significantly impact their economic performance, the Company does not consider itself the primary beneficiary of any such entity that meets the definition of a variable interest entity ("VIE"). Based on the results of management's analysis of potential VIEs, the Company has not consolidated any franchisee entities. The Company's maximum exposure to loss resulting from involvement with potential VIEs is attributable to accounts and notes receivables and future lease payments due from franchisees. When the Company does not have a controlling interest in an entity but has the ability to exert significant influence over the entity, the Company applies the equity method of accounting. All intercompany balances and transactions have been eliminated in consolidation. Basis of Presentation Revenues have been classified into product, service and other and rental revenues as further discussed in "Note 5. Revenue." Costs of sales for product includes the cost of merchandise, transportation and warehousing costs. Service and other costs of sales include the direct costs of warranties. Rental cost of sales represents the amortization of inventory costs over the leased term. Other operating expenses, including employee costs, depreciation and amortization, and advertising expenses have been classified in selling, general and administrative expenses. The Company also includes occupancy costs in selling, general and administrative expenses. Assets and liabilities of the Company's Canadian operations have been translated into U.S. dollars using the exchange rate in effect at the end of the period. Revenues and expenses have been translated using the average exchange rates in effect each month of the period. Foreign exchange transaction gains and losses are recognized when incurred. The Company reclassifies to accounts payable checks issued in excess of funds available and reports them as cash flow from operating activities. The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information. The condensed consolidated financial statements, including these notes, are unaudited and exclude some of the disclosures required only in annual financial statements. The Company changed its fiscal year end from April 30 to the Saturday closest to December 31st of each year, resulting in an 8-month transition period from May 1, 2019 to December 28, 2019. The consolidated balance sheet data as of December 28, 2019 was derived from the Company’s Transition Report on Form 10-K/T, filed with the U.S. Securities and Exchange Commission (the "SEC") on April 24, 2020 (the "2019 Transition Report"). The Company has provided unaudited historical financial information that was not previously presented for the three and nine months ended September 30, 2019 for comparison purposes. In the opinion of management, all adjustments necessary for a fair presentation of such condensed consolidated financial statements in accordance with GAAP have been recorded. These adjustments consisted only of normal recurring items. The accompanying condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in its 2019 Transition Report. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Merchandise Inventories Inventory for the Buddy's segment is recorded at cost, including shipping and handling fees. Upon purchase, merchandise is not initially depreciated until it is leased or three months after the purchase date. Non-leased merchandise is depreciated on a straight-line basis over a period of 24 months. Leased merchandise is depreciated over the lease term of the rental agreement and recorded in rental cost of revenue. On a weekly basis, all damaged, lost, stolen, or unsalable merchandise identified is written off. Maintenance and repairs of lease merchandise are charged to operations as incurred. Inventory for the American Freight segment is accounted for by banner. Inventory for the American Freight banner is comprised of finished goods and is valued at the lower of cost or market, with cost determined by the first-in, first out method. The Company writes down inventory, the impact of which is reflected in cost of sales in the Consolidated Statements of Operations, if the cost of specific inventory items on hand exceeds the amount the Company expects to be realized from the ultimate sale or disposal of the inventory. These estimates are based on management’s judgment regarding future demand and market conditions and analysis of historical experience. Inventory under the American Freight Outlet banner, previously the Sears Outlet segment, is recorded at the lower of cost or market using the weighted-average cost method. Inventory includes the purchase price of the inventory plus costs of freight for moving merchandise from vendors to distribution centers as well as from distribution centers to stores. A provision for estimated shrinkage is maintained based on the actual historical results of physical inventories. Estimates are compared to the actual results of the physical inventory counts as they are taken and adjust the shrink estimates accordingly. Inventory values are adjusted to the difference between the carrying value and the estimated market value, based on assumptions about future demand or when a permanent markdown indicates that the net realizable value of the inventory is less than cost. Inventory for the Vitamin Shoppe segment is recorded at the lower of cost or market value using the weighted-average cost method. Inventory includes costs directly incurred in bringing the product to its existing condition and location. In addition, the cost of inventory is reduced by purchase discounts and other allowances received from vendors. A markdown reserve is estimated based on a variety of factors, including, but not limited to, the amount of inventory on hand and its remaining shelf life, current and expected market conditions and product expiration dates. In addition, the Company has established a reserve for estimated inventory shrinkage based on the actual, historical shrinkage of its most recent physical inventories adjusted, if necessary, for current economic conditions and business trends. Physical inventories and cycle counts are taken on a regular basis. These adjustments are estimates, which could vary significantly from actual results if future economic conditions, customer demand or competition differ from management expectations. Goodwill and Non-amortizing Intangible Assets Goodwill and non-amortizing intangible assets, including the Buddy's, Vitamin Shoppe and American Freight tradenames, are not amortized, but rather tested for impairment at least annually. In addition, goodwill and non-amortizing intangible assets will be tested on an interim basis if an event or circumstance indicates that it is more likely than not that an impairment loss has been incurred. The Company performs a qualitative and/or quantitative assessment to determine whether it is more likely than not that each reporting unit's fair value is less than its carrying value, including goodwill. If the Company determines that it is more likely than not that the fair value of the reporting unit is less than its carrying value, the Company then estimates the fair value. The Company uses a combination of a market multiple method and a discounted cash flow method to estimate the fair value of its reporting units and recognizes goodwill impairment for any excess of the carrying amount of a reporting unit’s goodwill over its estimated fair value. The Company evaluates the Buddy's, Vitamin Shoppe and American Freight tradenames for impairment by comparing its fair value, based on an income approach using the relief-from-royalty method, to its carrying value. If the carrying value of the asset exceeds its estimated fair value, an impairment loss is recognized in an amount equal to that excess. The Company's reporting units are determined in accordance with the provisions of Accounting Standards Codification (“ASC”) 350, “Intangibles - Goodwill and Other (Topic 350).” The Company performs its annual impairment testing of goodwill and non-amortizing intangible assets on the last day of the first month of the Company's third quarter. Refer to “Note 4. Goodwill and Intangible Assets” for additional information on these balances. Intangible and Long-Lived Assets Impairment Amortization of intangible assets is calculated using the straight-line method over the estimated useful lives of the assets, generally from two to ten years. Long-lived assets, such as property, equipment, and software, and other purchased intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. Recognition and measurement of a potential impairment is performed for these assets at the lowest level where cash flows are individually identifiable. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Fair value is determined through various valuation techniques, including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary. Revenue Recognition The following is a description of the principal activities from which the Company generates its revenues. For more detailed information regarding reportable segments, see "Note 13. Segments." • Product revenues: These include sales of merchandise at the stores and online. Revenue is measured based on the amount of fixed consideration that the Company expects to receive, reduced by estimates for variable consideration such as returns. Revenue also excludes any amounts collected from customers and remitted or payable to governmental authorities. In arrangements where the Company has multiple performance obligations, the transaction price is allocated to each performance obligation using the relative stand-alone selling price. The Company recognizes revenues from retail operations upon the transfer of control of goods to the customer. The Company satisfies its performance obligations at the point of sale for retail store transactions and upon delivery for online transactions. The Company recognizes revenue for retail store and online transactions when it transfers control of the goods to the customer. Merchandise sales also include payments received for the exercise of the early purchase option offered through rental-purchase agreements or merchandise sold through point of sale transactions. Revenue for merchandise sales associated with rental purchase agreements is recognized when payment is received, and ownership of the merchandise passes to the customer. The remaining net value of merchandise sold is recorded to cost of sales at the time of the transaction. • Service and other revenues: These include royalties and advertising fees from franchisees, fees from the sales of franchises and area developer ("AD") territories, financial products, interest income from loans to franchisees and ADs, tax preparation services in the Company-owned stores, electronic filing fees, services and extended-service plans and financing programs. Commissions earned on services are presented net of related costs because the Company is acting as an agent in arranging the services for the customer and does not control the services being rendered. The Company recognizes revenue on the commissions on extended-service plans when it transfers control of the related goods to the customer. The Company recognizes franchise fee and AD fee revenue for the sales of individual territories on a straight-line basis over the initial contract term when the obligations of the Company to prepare the franchisee and AD for operation are substantially complete, not to exceed the estimated amount of cash to be received. Royalties and advertising fees are recognized as franchise territories generate sales. Tax return preparation fees and financial products revenue are recognized as revenue in the period in which related tax return is filed for the customer. Discounts for promotional programs are recorded at the time the return is filed and are recorded as reductions to revenues. Interest income on notes receivable is recognized based on the outstanding principal note balance less unrecognized revenue unless it is put on non-accrual status. Interest income on the unrecognized revenue portion of notes receivable is recognized when received. For accounts receivable, interest income is recognized based on the outstanding receivable balance over 30 days old, net of an allowance. • Rental revenues: The Company provides merchandise, consisting of consumer electronics, computers, residential furniture, appliances, and household accessories to its customers pursuant to rental-purchase agreements which provide for weekly, semi-monthly or monthly non-refundable rental payments. The average rental term is twelve to eighteen months and the Company maintains ownership of the lease merchandise until all payment obligations are satisfied under sales and lease ownership agreements. Customers have the option to purchase the leased goods at any point in the lease term. Customers can terminate the agreement at the end of any rental term without penalty. Therefore, rental transactions are accounted for as operating leases and rental revenue is recognized over the rental term. Cash received prior to the beginning of the lease term is recorded as deferred revenue. Revenue related to various reinstatement or late fees are recognized when paid by the customer. The Company offers additional product plans along with rental agreements that provide customers with liability protection against significant damage or loss of a product, and club membership benefits, including various discount programs, product services and replacement benefits in the event merchandise is damaged or lost. Customers renew product plans in conjunction with their rental term renewals and can cancel the plans at any time. Revenue for product plans is recognized over the term of the plan. Leases The Company's lease portfolio primarily consists of leases for its retail store locations, office space and distribution centers. The Company also leases certain office equipment under finance leases. The finance lease right of use assets are included in Property, equipment and software and the finance lease liabilities are included in current installments of long-term obligations, and long-term obligations. The finance leases are immaterial to the financial statements. The Company subleases some of its real estate and equipment leases. The Company determines if an arrangement is a lease at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether the Company obtains substantially all of the economic benefits from and has the ability to direct the use of the asset. Leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheets; the Company recognizes expense for these leases on a straight-line basis over the lease term. For leases with an initial term in excess of 12 months, lease right-of-use assets and lease liabilities are recognized based on the present value of the future lease payments over the committed lease term at the lease commencement date. The Company’s leases do not provide an implicit rate; therefore, the Company uses its incremental borrowing rate and the information available at the lease commencement date in determining the present value of future lease payments. Most leases include one or more options to renew and the exercise of renewal options is at the Company’s sole discretion. The Company does not include renewal options in its determination of the lease term unless the renewals are deemed to be reasonably certain at lease commencement. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company uses the long-lived assets impairment guidance in ASC Subtopic 360-10, “Property, Plant, and Equipment - Overall,” to determine whether a right-of-use asset is impaired, and if so, the amount of the impairment loss to recognize. The Company has lease agreements with lease and non-lease components, which the Company elects to combine as one lease component for all classes of underlying assets. Non-lease components include variable costs based on actual costs incurred by the lessor related to the payment of real estate taxes, common area maintenance, and insurance. These variable payments are expensed as incurred as variable lease costs. Due to the COVID-19 pandemic, the Company has been negotiating lease concessions with landlords. The lease concessions have been in the form of lease forgiveness, lease deferrals and lease deferrals with term extensions. If the total payments in the modified lease are substantially the same as or less than total payments in the original lease, the Company has elected to not evaluate whether the concession is a lease modification as defined in ASC 842 - "Leases". Deferred Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities, which are shown on the condensed consolidated balance sheets, are recognized for the future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company has elected to classify interest charged on a tax settlement in interest expense, and accrued penalties, if any, in selling, general, and administrative expenses. The determination of the Company's provision for income taxes requires significant judgment, the use of estimates, and the interpretation and application of complex tax laws. Significant judgment is required in assessing the timing and amounts of deductible and taxable items. The Company records unrecognized tax benefit liabilities for known or anticipated tax issues based on an analysis of whether, and the extent to which, additional taxes will be due. Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-13, " Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ", which changes how companies will measure credit losses for most financial assets and certain other instruments that aren't measured at fair value through net income. The standard replaces the "incurred loss" approach with an "expected loss" model for instruments measured at amortized cost (which generally will result in the earlier recognition of allowances for losses) and requires companies to record allowances for available-for-sale debt securities, rather than reduce the carrying amount. In addition, companies will have to disclose significantly more information, including information used to track credit quality by year of origination, for most financing receivables. The ASU should be applied as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the standard is effective. The ASU is effective for the Company for the fiscal year beginning December 25, 2022. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, “ Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ” This standard eliminates Step 2 from the goodwill impairment test. Instead, an entity should compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The ASU is effective for the Company for the fiscal year beginning December 25, 2022. The Company is currently evaluating the impact of the adoption of this standard to its consolidated financial statements. The London Interbank Offered Rate (“LIBOR”) is scheduled to be discontinued on December 31, 2021. In an effort to address the various challenges created by such discontinuance, the FASB issued an amendment to existing guidance, ASU No. 2020-04, " Reference Rate Reform ." The amended guidance is designed to provide relief from the accounting analysis and impacts that may otherwise be required for modifications to agreements (e.g., loans, debt securities, derivatives, borrowings) necessitated by the reference rate reform. It also provides optional expedients to enable companies to continue to apply hedge accounting to certain hedging relationships impacted by the reference rate reform. Application of the guidance in the amendment is optional, is only available in certain situations, and is only available for companies to apply until December 31, 2022. The Company is currently evaluating the impacts of reference rate reform and the new guidance on its consolidated financial statements. |
Acquisition (Notes)
Acquisition (Notes) | 9 Months Ended |
Sep. 26, 2020 | |
Acquisition [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | (2) Acquisitions American Freight Acquisition On February 14, 2020, the Company completed its acquisition of American Freight (the "American Freight Acquisition"). The Company accounted for the transaction as a business combination using the acquisition method of accounting in accordance with ASC 805 - "Business Combinations." The preliminary fair value of the consideration transferred at the acquisition date was $357.3 million. As of September 26, 2020 , $9.9 million of acquisition fees had been incurred that are recorded in selling, general and administrative expenses. The table below summarizes the unaudited preliminary estimates of the fair values of the identifiable assets acquired and liabilities assumed in the American Freight Acquisition as of February 14, 2020. The preliminary estimates of the fair value of identifiable assets acquired and liabilities assumed are subject to revisions, which may result in an adjustment to the preliminary values presented below. The Company expects to complete the purchase price allocation as soon as reasonably possible but not to exceed one year from the American Freight Acquisition date. (In thousands) Preliminary 2/14/2020 Cash and cash equivalents $ 3,840 Prepaid expenses and other current assets 3,284 Inventories, net 99,200 Property, equipment and software, net 11,032 Goodwill 335,474 Operating lease right-of-use assets 91,101 Other intangible assets, net 70,200 Other non-current assets 1,607 Total assets 615,738 Current operating lease liabilities 17,242 Accounts payable 44,696 Accrued expenses and other current liabilities 26,451 Current installments of long-term obligations 3,210 Long-term obligations, excluding current installments 93,975 Deferred tax liabilities 11,451 Non-current operating lease liabilities 61,450 Total liabilities 258,475 Consideration transferred $ 357,263 Goodwill is calculated as the excess of the purchase price over the fair value of the net assets acquired. The goodwill recognized is attributable to operational synergies in the expected franchise models and growth opportunities. The Company identified the American Freight trade name as an indefinite-lived intangible asset with a fair value of $70.2 million. The trade name is not subject to amortization but will be evaluated annually for impairment. Lease right-of-use assets and lease liabilities consists of leases for retail store locations, vehicles and office equipment. The lease right of use assets incorporates a favorable adjustment of $11.5 million, net for favorable and unfavorable American Freight leases (as compared to prevailing market rates) which will be amortized over the remaining lease terms. The property, equipment and software consists of leasehold improvements of $7.6 million, office furniture, fixtures and equipment of $2.2 million, computer hardware and software of $1.1 million and construction in progress of $0.2 million. Vitamin Shoppe On December 16, 2019, the Company completed the acquisition of Vitamin Shoppe (the "Vitamin Shoppe Acquisition") for an aggregate purchase price of $161.8 million. The Company accounted for the transaction as a business combination using the acquisition method of accounting. In the nine months ended September 26, 2020 , the preliminary estimates of the fair value of identifiable assets acquired and liabilities assumed were adjusted which resulted in a decrease in goodwill of $5.0 million. Sears Outlet Acquisition On October 23, 2019, the Company completed the acquisition of the Sears Outlet business from Sears Hometown and Outlet Stores, Inc. (the "Sears Outlet Acquisition") for an aggregate purchase price of $128.8 million. The Company accounted for the transaction as a business combination using the acquisition method of accounting. In the nine months ended September 26, 2020 , the preliminary estimates of the fair value of identifiable assets acquired and liabilities assumed were adjusted which resulted in an increase in goodwill of $3.6 million. Buddy's Acquisition On July 10, 2019, the Company completed the acquisition of Buddy's for an enterprise value of approximately $122.0 million (the "Buddy's Acquisition"). The Company accounted for the transaction as a business combination using the acquisition method of accounting. In the nine months ended September 26, 2020 , the preliminary estimates of the fair value of identifiable assets acquired and liabilities assumed were adjusted which resulted in an increase in goodwill of $2.1 million. Pro forma financial information The following unaudited consolidated pro forma summary has been prepared by adjusting the Company's historical data to give effect to the American Freight Acquisition, Vitamin Shoppe Acquisition, Sears Outlet Acquisition and Buddy's Acquisition as if they had occurred on May 1, 2018. Pro forma (Unaudited) Three Months Ended Nine Months Ended (In thousands) September 26, 2020 September 30, 2019 September 26, 2020 September 30, 2019 Revenue $ 550,992 $ 493,504 $ 1,704,844 $ 1,711,954 Net income (5,201 ) (25,468 ) 59,133 7,728 The unaudited consolidated pro forma financial information was prepared in accordance with accounting standards and is not necessarily indicative of the results of operations that would have occurred if the American Freight Acquisition, Vitamin Shoppe Acquisition, Sears Outlet Acquisition or Buddy's Acquisition had been completed on the date indicated, nor is it indicative of the future operating results of the Company. The unaudited pro forma results do not reflect events that either have occurred or may occur after the acquisition, including, but not limited to, the anticipated realization of operating synergies in subsequent periods. They also do not give effect to certain charges that the Company expects to incur in connection with the acquisition, including, but not limited to, additional professional fees and employee integration. |
Notes and Accounts Receivable
Notes and Accounts Receivable | 9 Months Ended |
Sep. 26, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | (3) Accounts and Notes Receivable Current and non-current receivables, as of September 26, 2020 and December 28, 2019 are presented in the condensed consolidated balance sheets as follows: (In thousands) September 26, 2020 December 28, 2019 Accounts receivable, net $ 48,788 $ 44,333 Notes receivable 13,975 37,994 Interest receivable, net 2,289 3,132 Income tax receivable 27,014 3,356 Allowance for doubtful accounts (7,789 ) (9,122 ) Current receivables, net 84,277 79,693 Notes receivable - non-current 16,691 19,501 Allowance for doubtful accounts - non-current (596 ) (863 ) Non-current receivables, net 16,095 18,638 Total receivables $ 100,372 $ 98,331 The Company provides and facilitates select financing to ADs and franchisees for the purchase of franchises, areas and operating loans for working capital and equipment needs. The franchise-related notes generally are payable over five years and the operating loans generally are due within one year . Most notes bear interest at 12% . Most of the notes receivable are due from the Company's ADs and franchisees and are collateralized by the underlying franchise and when the AD or franchise is an entity, are guaranteed by the owners of the respective entity. The debtors' ability to repay the notes is dependent upon both the performance of the franchisee's industry as a whole and the individual franchise or AD areas. Analysis of Past Due Receivables The breakdown of accounts and notes receivable past due at September 26, 2020 was as follows: (In thousands) Past due Current Interest receivable, net Total receivables Accounts receivable $ 31,302 $ 17,486 $ — $ 48,788 Notes and interest receivable, net (1) 9,454 21,212 2,289 32,955 Total accounts, notes and interest receivable $ 40,756 $ 38,698 $ 2,289 $ 81,743 (1) Interest receivable is shown net of an allowance for uncollectible interest of $2.5 million . Accounts receivable are considered to be past due if unpaid 30 days after billing, and notes receivable are considered past due if unpaid 90 days after the due date. If it is determined the likelihood of collecting substantially all of the notes and accrued interest is not probable, the notes are put on non-accrual status. The Company’s investment in notes receivable on non-accrual status was $9.5 million and $8.5 million at September 26, 2020 and December 28, 2019 , respectively. Payments received on notes in non-accrual status are applied to the principal until the note is current and then to interest income. Non-accrual notes that are paid current and expected to remain current are moved back into accrual status during the next annual review. Allowance for Doubtful Accounts |
Notes and Accounts Receivable | Accounts and Notes Receivable Current and non-current receivables, as of September 26, 2020 and December 28, 2019 are presented in the condensed consolidated balance sheets as follows: (In thousands) September 26, 2020 December 28, 2019 Accounts receivable, net $ 48,788 $ 44,333 Notes receivable 13,975 37,994 Interest receivable, net 2,289 3,132 Income tax receivable 27,014 3,356 Allowance for doubtful accounts (7,789 ) (9,122 ) Current receivables, net 84,277 79,693 Notes receivable - non-current 16,691 19,501 Allowance for doubtful accounts - non-current (596 ) (863 ) Non-current receivables, net 16,095 18,638 Total receivables $ 100,372 $ 98,331 The Company provides and facilitates select financing to ADs and franchisees for the purchase of franchises, areas and operating loans for working capital and equipment needs. The franchise-related notes generally are payable over five years and the operating loans generally are due within one year . Most notes bear interest at 12% . Most of the notes receivable are due from the Company's ADs and franchisees and are collateralized by the underlying franchise and when the AD or franchise is an entity, are guaranteed by the owners of the respective entity. The debtors' ability to repay the notes is dependent upon both the performance of the franchisee's industry as a whole and the individual franchise or AD areas. Analysis of Past Due Receivables The breakdown of accounts and notes receivable past due at September 26, 2020 was as follows: (In thousands) Past due Current Interest receivable, net Total receivables Accounts receivable $ 31,302 $ 17,486 $ — $ 48,788 Notes and interest receivable, net (1) 9,454 21,212 2,289 32,955 Total accounts, notes and interest receivable $ 40,756 $ 38,698 $ 2,289 $ 81,743 (1) Interest receivable is shown net of an allowance for uncollectible interest of $2.5 million . Accounts receivable are considered to be past due if unpaid 30 days after billing, and notes receivable are considered past due if unpaid 90 days after the due date. If it is determined the likelihood of collecting substantially all of the notes and accrued interest is not probable, the notes are put on non-accrual status. The Company’s investment in notes receivable on non-accrual status was $9.5 million and $8.5 million at September 26, 2020 and December 28, 2019 , respectively. Payments received on notes in non-accrual status are applied to the principal until the note is current and then to interest income. Non-accrual notes that are paid current and expected to remain current are moved back into accrual status during the next annual review. Allowance for Doubtful Accounts The adequacy of the allowance for doubtful accounts is assessed on a quarterly basis and adjusted as deemed necessary. Management believes the recorded allowance is adequate based upon its consideration of the estimated fair value of the franchises and AD areas collateralizing the receivables. Any adverse change in the individual franchise or AD areas could affect the Company's estimate of the allowance. Activity in the allowance for doubtful accounts for the three and nine months ended September 26, 2020 and September 30, 2019 was as follows: Three Months Ended Nine Months Ended (In thousands) September 26, 2020 September 30, 2019 September 26, 2020 September 30, 2019 Balance at beginning of period $ 10,678 $ 11,860 $ 9,985 $ 12,353 Provision for doubtful accounts (99 ) 1,641 3,425 6,411 Write-offs and reduction from repurchases of franchises (2,244 ) (4,173 ) (4,994 ) (9,508 ) Foreign currency adjustment 50 (27 ) (31 ) 45 Balance at end of period $ 8,385 $ 9,301 $ 8,385 $ 9,301 Management considers specific accounts and notes receivable to be impaired if the net amounts due exceed the fair value of the underlying franchise at the time of the annual valuation and estimates an allowance for doubtful accounts based on that excess. At the end of each fiscal quarter, the Company considers the activity during the period for accounts and notes receivable impaired from the prior annual valuation and adjusts the allowance for doubtful accounts accordingly. While not specifically identifiable as of the balance sheet date, the Company's analysis of its experience also indicates that a portion of other accounts and notes receivable may not be collectible. Net amounts due include contractually obligated accounts and notes receivable plus accrued interest, reduced by unrecognized revenue, the allowance for uncollected interest, amounts due ADs, and amounts owed to the franchisee by the Company. When a franchise is repurchased, intangible assets are recorded if the franchise will be run as a Company-owned store. On July 10, 2020, the Company entered into a Senior Secured Super Priority Debtor-In-Possession Delayed Draw Term Loan Agreement (the “DIP DDTL Agreement”) with Tuesday Morning Corporation (“Tuesday Morning”) and certain of its direct and indirect subsidiaries. Pursuant to the DIP DDTL Agreement, the Company agreed to lend Tuesday Morning up to an aggregate principal amount of $25 million in the form of delayed draw term loans (the “DIP Term Facility”). The DIP Term Facility is guaranteed by certain of Tuesday Morning's direct and indirect subsidiaries and secured on a super priority basis by real estate assets owned by Tuesday Morning, including its corporate headquarters and warehouse/distribution complex located in Dallas, Texas. The DIP Term Facility will mature on April 10, 2021, which maturity may be extended, subject to payment of an extension fee to the Company, for an additional three months at the election of Tuesday Morning. The DIP Term Facility will bear interest at a rate per annum based on 3-month LIBOR (with a 1.00% LIBOR floor), plus an interest rate margin of 5.0% (subject to further increase of 2.0% upon the occurrence of an event of default). The DIP Term Facility is being provided in connection with Tuesday Morning’s Chapter 11 bankruptcy cases. As of September 26, 2020 |
Revenue Revenue (Notes)
Revenue Revenue (Notes) | 9 Months Ended |
Sep. 26, 2020 | |
Revenue [Abstract] | |
Revenue Recognition, Deferred Revenue [Policy Text Block] | (5) Revenue For details regarding the principal activities from which the Company generates its revenue, see "Note 1. Organization and Significant Accounting Policies" in this quarterly report. For more detailed information regarding reportable segments, see "Note 13. Segments" in this quarterly report. The following represents the disaggregated revenue by reportable segments for the three and nine months ended September 26, 2020 : September 26, 2020 Vitamin Shoppe American Freight Liberty Tax Buddy's (In thousands) Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended Retail sales $ 266,965 $ 780,588 $ 231,959 $ 655,311 $ — $ — $ 1,538 $ 4,778 Total product revenue 266,965 780,588 231,959 655,311 — — 1,538 4,778 Franchise fees — — — — 188 915 8 20 Area developer fees — — — — 1,607 3,076 — — Royalties and advertising fees — — — — 7,346 55,410 2,517 7,346 Financial products — — 6,775 8,066 1,328 31,200 — — Interest income — — 315 987 356 3,254 — — Assisted tax preparation fees, net of discounts — — — — 559 15,477 — — Electronic filing fees — — — — 219 2,619 — — Agreement, club and damage waiver fees — — — — — — 3,436 10,124 Warranty revenue — — 4,775 13,754 — — — — Other revenues — — 1,388 4,268 1,697 6,041 612 1,951 Total service revenue — — 13,253 27,075 13,300 117,992 6,573 19,441 Rental revenue, net — — — — — — 17,404 51,000 Total rental revenue — — — — — — 17,404 51,000 Total revenue $ 266,965 $ 780,588 $ 245,212 $ 682,386 $ 13,300 $ 117,992 $ 25,515 $ 75,219 The following represents the disaggregated revenue by reportable segments for the three and nine months ended September 30, 2019 : September 30, 2019 Vitamin Shoppe American Freight Liberty Tax Buddy's (In thousands) Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended Retail sales $ — $ — $ — $ — $ — $ — $ 557 $ 557 Total product revenue — — — — — — 557 557 Franchise fees — — — — 450 1,943 — — Area developer fees — — — — 920 2,618 — — Royalties and advertising fees — — — — 933 61,831 2,453 2,453 Financial products — — — — 297 33,172 — — Interest income — — — — 1,137 5,966 — — Assisted tax preparation fees, net of discounts — — — — 237 12,227 — — Electronic filing fees — — — — 32 2,977 — — Agreement, club and damage waiver fees — — — — — — 1,693 1,693 Other revenues — — — — 1,408 4,338 724 724 Total service revenue — — — — 5,414 125,072 4,870 4,870 Rental revenue, net — — — — — — 8,079 8,079 Total rental revenue — — — — — — 8,079 8,079 Total revenue $ — $ — $ — $ — $ 5,414 $ 125,072 $ 13,506 $ 13,506 Contract Balances The following table provides information about receivables and contract liabilities (deferred revenue) from contracts with customers. Notes receivable are in the current receivables, net and non-current receivables, net lines of the consolidated balance sheets and deferred revenue is in the other current liabilities and other non-current liabilities lines of the consolidated balance sheets. (In thousands) September 26, 2020 December 28, 2019 Notes receivable $ 30,667 $ 57,495 Deferred revenue 34,236 10,519 Significant changes in deferred revenue were as follows: Three Months Ended Nine Months Ended (In thousands) September 26, 2020 September 26, 2020 Deferred revenue at beginning of period $ 35,982 $ 10,519 Revenue recognized during the period (23,541 ) (39,744 ) Deferred revenue from acquisitions and purchase price adjustments — 14,056 New deferred revenue during the period 21,795 49,405 Deferred revenue at end of period $ 34,236 $ 34,236 Anticipated Future Recognition of Deferred Revenue The following table reflects when deferred revenue is expected to be recognized in the future related to performance obligations that are unsatisfied at the end of the period: (In thousands) Estimate for Fiscal Year 2020 (1) $ 30,173 2021 1,403 2022 1,195 2023 768 2024 138 Thereafter 559 Total $ 34,236 (1) Represents deferred revenue expected to be recognized for the remainder of fiscal 2020. The amount does not include deferred revenues recognized for the nine months ended September 26, 2020 . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 26, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Changes in the carrying amount of goodwill for the nine months ended September 26, 2020 and the transition period ended December 28, 2019 were as follows: (In thousands) September 26, 2020 December 28, 2019 Balance at beginning of period $ 134,301 $ 6,566 Acquisitions of assets from franchisees and third parties 920 3,658 Buddy's Acquisition — 75,038 Buddy's Partners Asset Acquisition — 7,217 A-Team Leasing Acquisition — 6,287 Sears Outlet Acquisition — 31,028 American Freight Acquisition 335,472 — Vitamin Shoppe Acquisition — 4,951 Disposals and foreign currency changes, net (1,660 ) (444 ) Purchase price reallocation 792 — Impairments (37 ) — Balance at end of period $ 469,788 $ 134,301 Components of intangible assets as of September 26, 2020 and December 28, 2019 were as follows: September 26, 2020 (In thousands) Gross carrying amount Accumulated amortization Net carrying amount Tradenames (1) $ 94,300 $ (100 ) $ 94,200 Customer contracts 12,700 (2,521 ) 10,179 Franchise agreements and non-compete agreements 10,581 (1,302 ) 9,279 Customer lists 4,120 (2,698 ) 1,422 Reacquired rights 10,241 (2,249 ) 7,992 AD rights 39,237 (16,831 ) 22,406 Total intangible assets $ 171,179 $ (25,701 ) $ 145,478 (1) $70.2 million, $11.1 million and $12.0 million of tradenames were acquired in the American Freight Acquisition, Buddy's Acquisition and Vitamin Shoppe Acquisition, respectively. These tradenames have an indefinite life and they are tested for impairment on an annual basis. December 28, 2019 (In thousands) Gross carrying amount Accumulated amortization Net carrying amount Tradenames (1) $ 23,534 $ (72 ) $ 23,462 Customer contracts 12,736 (886 ) 11,850 Franchise agreements and non-compete agreements 10,609 (486 ) 10,123 Customer lists 4,338 (2,559 ) 1,779 Reacquired rights 11,577 (2,053 ) 9,524 AD rights 37,263 (16,411 ) 20,852 Total intangible assets $ 100,057 $ (22,467 ) $ 77,590 (1) $11.1 million and $12.0 million of tradenames were acquired in the Buddy's Acquisition and Vitamin Shoppe Acquisition, respectively. These tradenames have an indefinite life and they are tested for impairment on an annual basis. |
Debt
Debt | 9 Months Ended |
Sep. 26, 2020 | |
Debt Instrument [Line Items] | |
Debt | Long-Term Obligations Long-term obligations at September 26, 2020 and December 28, 2019 , were as follows: (In thousands) September 26, 2020 December 28, 2019 Revolving credit facilities $ 85,665 $ 129,260 Term loan, net of debt issuance costs 537,970 268,660 Convertible senior notes 60 60,439 Amounts due to former ADs, franchisees and third parties 2,036 1,661 Mortgages 1,725 1,825 Finance lease liabilities 1,271 1,775 Total long-term obligations 628,727 463,620 Less current installments 112,374 218,384 Total long-term obligations, excluding current installments, net $ 516,353 $ 245,236 Franchise Group New Holdco Credit Agreement and Term Loan On February 14, 2020, the Company, through an indirect subsidiary, executed a term loan agreement with GACP Finance Co., LLC for an amount of $575.0 million (the “FGNH Credit Agreement”), which consists of a $375.0 million first out tranche (the “FGNH Tranche A-1 Term Loan”) and a $200.0 million last out tranche (the “FGNH Tranche A-2 Term Loan”). The term loan will mature on February 14, 2025, unless the maturity is accelerated subject to the terms set forth in the term loan agreement. The FGNH Credit Agreement will, at the option of the Company, bear interest at either (i) a rate per annum based on LIBOR for an interest period of one, two, three or six months, plus an interest rate margin of 8.0% for the FGNH Tranche A-1 Term Loan and 12.5% for the FGNH Tranche A-2 Term Loan with a 1.50% LIBOR floor, or (ii) an alternate base rate determined as provided in the FGNH Credit Agreement, plus an interest rate margin of 7.0% for the FGNH Tranche A-1 Term Loan and 11.5% for the FGNH Tranche A-2 Term Loan with a 2.50% alternate base rate floor. Interest is payable in arrears at the end of each fiscal quarter. The Company is required to repay the FGNH Credit Agreement in equal fiscal quarterly installments of $6.25 million on the last day of each fiscal quarter, commencing with the fiscal quarter ending June 27, 2020. Further, the Company is required to prepay the FGNH Credit Agreement with 50% of consolidated excess cash flow on a quarterly basis with the net cash proceeds of certain other customary events. All repayments or prepayments (whether voluntary or mandatory) of the FGNH Credit Agreement, other than the fixed quarterly installments and excess cash flow prepayments are subject to early repayment fees. The FGNH Credit Agreement includes customary affirmative, negative, and financial covenants binding on the Company and its subsidiaries, including delivery of financial statements and other reports. The negative covenants limit the ability of the Company and its subsidiaries, among other things, to incur debt, incur liens, make investments, sell assets, pay dividends on its capital stock and enter into transactions with affiliates. The financial covenants set forth in the FGNH Credit Agreement include a maximum total leverage ratio (net of certain cash) and a minimum fixed charge coverage ratio, to be tested at the end of each fiscal quarter, in each case with respect to certain subsidiaries of the Company. In addition, the FGNH Credit Agreement includes customary events of default, the occurrence of which may require that the Company pay an additional 2.0% interest. In addition to financing the American Freight acquisition and its related acquisition costs, a portion of the proceeds from the FGNH Credit Agreement and the FGNH ABL Term Loan (as defined below) were used to repay the Buddy’s and Sears Outlet’s term loan for an outstanding amount of $ 101.6 million and $106.7 million including accrued interest, respectively. The early repayment of the term loans resulted in additional interest expense of $4.6 million for the write-off of deferred financing costs and $4.0 million for a prepayment penalty. The prepayment penalty is recorded in the Other expense line of the consolidated statements of operations for the nine months ended September 26, 2020 . On May 1, 2020, the Company entered into an amendment to the FGNH Credit Agreement to provide for the joinder of Franchise Group Intermediate L 1, LLC, an indirect subsidiary of the Company, and each of its direct and indirect subsidiaries (collectively, the “Liberty Tax Entities”), to the FGNH Term Loan Credit Agreement and the FGNH ABL Credit Agreement, respectively, as borrowers thereunder, and in connection therewith, certain related security documents provided for the Liberty Tax Entities to grant or continue to grant liens on substantially all of their assets to secure the obligations under the FGNH Term Loan Credit Agreement and the FGNH ABL Credit Agreement. Further, the amendment modified the FGNH Term Loan Credit Agreement and the FGNH ABL Credit Agreement, respectively, to, among other things, (i) permit certain ordinary course and otherwise anticipated activities of the Liberty Tax Entities and (ii) make certain technical modifications related to the COVID-19 pandemic and other events. Franchise Group New Holdco New ABL Credit Agreement and New ABL Term Loan On September 23, 2020, the Company, through direct and indirect subsidiaries, entered into an ABL Credit Agreement (the “New ABL Credit Agreement”) with various lenders which provides for a senior secured revolving loan facility (the “New ABL Revolver”) with commitments available to the Company of the lesser of (i) $125.0 million and (ii) a borrowing base based on the eligible credit card receivables, accounts, inventory and revenue due under certain rental agreements, less certain reserves. The New ABL Credit Agreement also includes a $15.0 million swingline subfacility and a $15.0 million letter of credit subfacility. The Company borrowed approximately $32.7 million on September 23, 2020, the proceeds of which were used to prepay certain existing indebtedness under the existing FGNH ABL Credit Agreement (as defined below), to pay fees and expenses in connection with the New ABL Credit Agreement, and for general corporate purposes. The New ABL Revolver will mature on the earlier of September 23, 2025 and the maturity date under the FGNH Credit Agreement (i.e., February 14, 2025), unless the maturity is accelerated subject to the terms set forth in the New ABL Credit Agreement. Borrowings under the New ABL Revolver will bear interest at either (i) a rate per annum based on LIBOR for an interest period of one, two, three or six months (or, if all applicable twelve months), plus an interest rate margin that ranges from 3.50% to 3.75% , depending on the total leverage ratio of the Company, with a 1.00% LIBOR floor (a “New ABL LIBOR Loan”), or (ii) an alternate base rate determined as provided in the New ABL Credit Agreement, plus an interest rate margin that ranges from 2.50% to 2.75% , depending on the total leverage ratio of the Company, with an effective 2.00% alternate base rate floor (a “New ABL ABR Loan”). Interest on New ABL LIBOR Loans is payable in arrears at the end of each applicable interest period (and, with respect to any six- or twelve-month interest period, at three month intervals after the first day of such interest period), and interest on New ABL ABR Loans is payable in arrears on the first day of each month. If the sum of the outstanding principal amount of the outstanding loans (including swingline loans) under the New ABL Revolver and the outstanding amount of letter of credit obligations thereunder exceeds the borrowing base, the Company is required to prepay the loans under the New ABL Revolver (including swingline loans) or cash collateralize letters of credit thereunder in the amount of any such excess. The Company is also required to prepay the loans under the New ABL Revolver, subject to the agreements between the New ABL Credit Agreement lenders and the FGNH Credit Agreement lenders, with the net cash proceeds of certain other customary events (subject to certain customary reinvestment rights). The Company may make voluntary prepayments of the loans under the New ABL Revolver from time to time. Amounts repaid may be re-borrowed, subject to compliance with the borrowing base and the other conditions set forth in the New ABL Credit Agreement. The Company may be required to pay LIBOR breakage and redeployment costs in certain limited circumstances. The New ABL Credit Agreement also includes a covenant that availability must not be less than the greater of $12.5 million and 12.5% of the lesser of $125.0 million and the borrowing base. In addition, the New ABL Credit Agreement includes customary events of default, the occurrence of which may require that the Company pay an additional 2.0% interest on the outstanding loans under the New ABL Revolver. Franchise Group New Holdco ABL Credit Agreement and ABL Term Loan On February 14, 2020, the Company, through direct and indirect subsidiaries, entered into an ABL credit agreement (the "FGNH ABL Credit Agreement") with various lenders which provided the Company with a $100.0 million credit facility (the “FGNH ABL Term Loan”). On February 14, 2020, the Company borrowed $100.0 million on the FGNH ABL Term Loan to finance the acquisition of American Freight. On September 23, 2020, the Company repaid in full all amounts that were outstanding under the FGNH ABL Term Loan and terminated the FGNH ABL Credit Agreement . B. Riley ABL Commitment On May 1, 2020, in connection with the American Freight Acquisition and the ABL Credit Agreement, the Company entered into an Amended and Restated ABL Commitment Letter with B. Riley Financial, Inc. ("B. Riley") pursuant to which B. Riley agreed to provide, subject to the terms and conditions set forth therein, a backstop commitment for a $100 million asset-based lending facility. The ABL Commitment Letter was terminated on September 25, 2020. Vitamin Shoppe Term Loan On December 16, 2019 as part of the Vitamin Shoppe Acquisition, the Company, through direct and indirect subsidiaries, entered into a Loan and Security Agreement (the “Vitamin Shoppe Term Loan Agreement”) that provides for a $70.0 million senior secured term loan (the "Vitamin Shoppe Term Loan") which matures on December 16, 2022. On May 22, 2020, the Company purchased $5.3 million of the Vitamin Shoppe Term Loan from one of the participating lenders, which effectively retired that portion of the term loan. On August 13, 2020, the Company repaid in full the remaining balance outstanding under the Vitamin Shoppe Term Loan and terminated the Vitamin Shoppe Term Loan Agreement on August 25, 2020. Vitamin Shoppe ABL Revolver On December 16, 2019, the Company, through direct and indirect subsidiaries, entered into a Second Amended and Restated Loan and Security Agreement (the “ Vitamin Shoppe ABL Agreement”) providing for a senior secured revolving loan facility (the “Vitamin Shoppe ABL Revolver”) with commitments available to the Company of the lesser of (i) $100.0 million and (ii) a specified borrowing base based on our eligible credit card receivables, accounts receivable and inventory, less certain reserves, and as to each of clauses (i) and (ii), less a $10.0 million availability block. The Vitamin Shoppe ABL Revolver will mature on December 16, 2022, unless the maturity is accelerated subject to the terms set forth in the Vitamin Shoppe ABL Agreement. The Company borrowed $70.0 million on December 16, 2019, the proceeds of which were used to consummate the Vitamin Shoppe Acquisition. The ABL Agreement amended and restated the existing Amended and Restated Loan and Security Agreement (the “Existing Vitamin Shoppe ABL Agreement”), dated as of January 20, 2011. The Company's obligations under the ABL Agreement are secured by substantially all of the assets of the Vitamin Shoppe segment. The Intercreditor Agreement sets forth the relative priorities of the security interests granted with respect to the Vitamin Shoppe ABL Revolver and those granted with respect to the Vitamin Shoppe Term Loan. The security interest granted to the Vitamin Shoppe ABL Revolver lenders is senior to that granted to the Vitamin Shoppe Term Loan lenders with respect to, among other assets, accounts receivable, inventory and deposit accounts. Borrowings under the Vitamin Shoppe ABL Revolver will, at the Company's option, bear interest at either (i) a rate per annum based on LIBOR for an interest period of one, two, three or six months, plus an interest rate margin that ranges from 1.25% to 1.75% , depending on excess availability (a “LIBOR Loan”), with a 0.0% LIBOR floor, or (ii) an alternate base rate determined as provided in the Vitamin Shoppe ABL Agreement, plus an interest rate margin that ranges from 0.25% to 0.75% , depending on excess availability (an “ABR Loan”), with a 1.0% alternate base rate floor. Interest on LIBOR Loans is payable in arrears at the end of each applicable interest period (and, with respect to a six-month interest period, three months after commencement of the interest period), and interest on ABR Loans is payable in arrears on the first business day of each calendar quarter. Subject to the Intercreditor Agreement, the Company is required to repay borrowings under the Vitamin Shoppe ABL Revolver with the net cash proceeds of certain customary events (subject to certain customary reinvestment rights). Further, if the outstanding principal amount of the borrowings under the Vitamin Shoppe ABL Revolver at any time exceeds the lesser of $100.0 million and the borrowing base, less, in each case, a $10.0 million availability block, the Company must prepay any such excess. The Vitamin Shoppe ABL Agreement includes customary affirmative and negative covenants binding on the Company and its subsidiaries, including the delivery of financial statements, borrowing base certificates and other reports. The negative covenants limit the ability of the Company and its subsidiaries, among other things, to incur debt, incur liens, make investments, sell assets, pay dividends on its capital stock and enter into transactions with affiliates. In addition, the Vitamin Shoppe ABL Agreement includes customary events of default, the occurrence of which may require the Company to pay an additional 2.0% interest on the borrowings under the Vitamin Shoppe ABL Revolver. Liberty Tax Credit Agreement On May 16, 2019, the Company entered into a new credit agreement (the "Liberty Tax Credit Agreement") which provided for a $135.0 million senior revolving credit facility, a $10.0 million sub-facility for the issuance of letters of credit, and a $20.0 million swingline loan sub-facility. On October 2, 2019, the Company amended the Liberty Tax Credit Agreement dated May 16, 2019 to extend the maturity date to October 2, 2022, from the original maturity date of May 31, 2020 and decrease the aggregate amount of commitments from $135.0 million to $125.0 million as of October 2, 2019. The Liberty Tax Credit Agreement included customary affirmative, negative, and financial covenants, including delivery of financial statements and other reports and maintenance of existence. On February 14, 2020, the Company amended certain provisions of the Liberty Tax Credit Agreement to provide for the gradual reduction of the commitments under the Liberty Tax Credit Agreement and terminated the facility on April 30, 2020. Other Indebtedness On February 7, 2020, the Company completed the repurchase of $60.4 million in aggregate principal amount of outstanding Convertible Senior Notes for a purchase price of $60.6 million, which included accrued interest. In December 2016, the Company obtained a mortgage payable to a bank in monthly installments of principal payments plus interest at the one-month LIBOR plus 1.85% through December 2026 with a balloon payment of $0.8 million due at maturity. The mortgage is collateralized by land and buildings. Compliance with debt covenants The Company's revolving credit and long-term debt agreements impose restrictive covenants on it, including requirements to meet certain ratios. As of September 26, 2020 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 26, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Coronavirus, Aid, Relief, and Economic Security, or CARES Act (the “Act”) was enacted on March 27, 2020. The Act retroactively changed the eligibility of certain assets for expense treatment in the year placed in service, back to 2018, and permitted any net operating loss for the tax years 2018, 2019 and 2020 to be carried back for 5 years . The Company recorded a total income tax benefit of $45.6 million through the second quarter associated with the income tax components contained in the Act. As of September 26, 2020 , the Company has completed an initial analysis of the tax effects of the Act but continues to monitor developments by federal and state rule making authorities regarding implementation of the Act. The Company has made reasonable estimates of the effects of the Act and will adjust, if needed, as new laws or guidance becomes available. For the three months ended September 26, 2020 and September 30, 2019 , the Company had an effective tax rate of (5.2)% and 15.6% , respectively. For the nine months ended September 26, 2020 , the Company recognized an income tax benefit of $43.6 million, which represented an effective tax rate of 357.0% . For the nine months ended September 30, 2019 , the Company recognized income tax expense of $10.4 million, which represented an effective tax rate of 52.3% . The income tax benefit for the nine months ended September 26, 2020 , included the impact of the enactment of the Act, as discussed above, which is the primary driver of the difference in effective tax rate. In addition, the impact of the American Freight Acquisition has been considered for the nine months ended September 26, 2020 . The Company recorded an additional $11.4 million deferred tax liability to account for cumulative temporary differences resulting from the American Freight Acquisition. These initial amounts recorded in connection with purchase accounting will be adjusted during the measurement periods as the Company gathers information regarding facts and circumstances that existed as of the acquisition date. The Company has a valuation allowance recorded against its net deferred tax assets of $48.2 million. The Company intends to maintain a valuation allowance on its deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of these allowances. A reduction in the valuation allowance could result in a significant decrease in income tax expense in the period in which the release is recorded. However, the exact timing and amount of any reduction in the Company’s valuation allowance are unknown at this time and will be subject to the earnings level it achieves in future periods. Tax Receivable Agreement Pursuant to the Company's election under Section 754 of the Internal Revenue Code (the "Code"), the Company expects to obtain an increase in its share of the tax basis in the net assets of New Holdco when New Holdco units are redeemed or exchanged by the non-controlling interest holders and other qualifying transactions. The Company has treated the redemptions and exchanges of New Holdco units by the non-controlling interest holders as direct purchases of New Holdco units for U.S. federal income tax purposes. These increases in tax basis may reduce the amounts that it would otherwise pay in the future to various tax authorities. They may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets. On July 10, 2019, the Company entered into a tax receivable agreement with the then-existing non-controlling interest holders (the "Tax Receivable Agreement") that provides for the payment by the Company to the non-controlling interest holders of 40% of the cash savings, if any, in federal, state and local taxes that the Company realizes or is deemed to realize as a result of any increases in tax basis of the assets of New Holdco resulting from future redemptions or exchanges of New Holdco units. During the nine months ended September 26, 2020 , the Company acquired an aggregate of 9,433,332 New Holdco units, which resulted in an increase in the tax basis of its investment in New Holdco subject to the provisions of the Tax Receivable Agreement. In the nine months ended September 26, 2020 , the Company recognized a total liability in the amount of $17.2 million for the payments due to the redeeming members under the Tax Receivable Agreement ("TRA Payments"), representing 40% of the cash savings it expects to realize from the tax basis increases related to the redemption of New Holdco units. TRA Payments will be made when such TRA related deductions actually reduce the Company’s income tax liability. No payments were made to members of New Holdco pursuant to the Tax Receivable Agreement during the quarter ended September 26, 2020 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 26, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Stockholders' Equity Activity On January 3, 2020, the Company entered into a Subscription Agreement with an affiliate of Vintage Capital Management, LLC ("Vintage"), pursuant to which the affiliate of Vintage purchased from the Company 2,354,000 shares of common stock of the Company, par value $0.01 per share, at a purchase price of $12.00 per share for an aggregate purchase price of $28.2 million in cash. The common stock was purchased pursuant to an amendment to an equity commitment letter, dated August 7, 2019, between the Company and Tributum, L.P. (as amended, the "ECL"), pursuant to which Vintage agreed to provide $70.0 million of equity financing for the Vitamin Shoppe Acquisition. On February 7, 2020, investors purchased approximately 3,877,965 shares of the Company's common stock for $65.9 million. The equity financing was done through purchases of shares of common stock of the Company at $12.00 per share under the ECL, and $23.00 per share in connection with a separate private placement of shares of common stock (collectively, the "Equity Financing") pursuant to certain subscription agreements entered into by each investor with the Company. Pursuant to the ECL, Tributum, L.P. assigned certain of its obligations thereunder to provide a portion of such Equity Financing to certain of the investors. The proceeds of the of Equity Financing were used by the Company to fund the repurchase or redemption of the Company's outstanding 2.25% Convertible Notes (the "Convertible Notes"), to make interest payments on the Convertible Notes that are not repurchased or redeemed until their maturity and to also fund general, working capital and cash needs of the Company. On February 14, 2020, the Company issued 1,250,000 shares of the Company's common stock with a value of $31.0 million, which was recorded as deferred financing costs, to Kayne FRG Holdings L.P. for services provided in the financing of the American Freight Acquisition. On June 25, 2020, the Company entered into an Underwriting Agreement (the "Common Stock Underwriting Agreement") with B. Riley FBR, Inc. ("B. Riley FBR") as representative of the underwriters named therein (the “Common Stock Underwriters”) to issue and sell an aggregate of 4,200,000 shares of the Company's common stock in a public offering at a price of $23.25 per share. In addition, the Company granted the Common Stock Underwriters an option to purchase up to an additional 630,000 shares of the Company's common stock for a period of 30 days from June 25, 2020. The offering closed on June 30, 2020 and the net proceeds to the Company from the offering were approximately $92.2 million, after deducting underwriting discounts and estimated offering expenses of approximately $5.4 million. On July 25, 2020, the Company and B. Riley FBR entered into an Amendment No. 1 to the Common Stock Underwriting Agreement to extend the period during which the Company granted the Common Stock Underwriters the option to 35 days from June 25, 2020, or July 30, 2020. On July 30, 2020, the Common Stock Underwriters provided notice to purchase the additional 630,000 shares of the Company's common stock. On August 3, 2020, the Company received proceeds of approximately $13.8 million, net of underwriting discounts of approximately $0.8 million. On September 15, 2020, the Company entered into an Underwriting Agreement with B. Riley Securities, Inc. (formerly known as B. Riley FBR) (“B. Riley Securities”), as representative of the underwriters named therein (the “Preferred Stock Underwriters”), to issue and sell an aggregate of 1,200,000 shares of the Company’s 7.50% Series A Cumulative Perpetual Preferred Stock, par value $0.01 per share and liquidation preference of $25.00 per share (the “Series A Preferred Stock”), in a public offering at a price to the public of $25.00 per share. The Company also granted the Preferred Stock Underwriters the Option to purchase up to 180,000 additional shares of Series A Preferred Stock for a period of 30 days following September 15, 2020. The offering closed on September 18, 2020, and the net proceeds to the Company from the offering were approximately $28.8 million, after deducting the underwriting discount, the structuring fee and other estimated offering expenses of approximately $1.2 million. On October 15, 2020, the Preferred Stock Underwriters provided notice to purchase an additional 50,000 shares of the Series A Preferred Stock on the terms and subject to the conditions set forth in the Preferred Stock Underwriting Agreement. The Company received proceeds of approximately $1.2 million, net of expenses of less than $0.1 million. During the first quarter of 2020, the Company also corrected an immaterial misclassification between retained earnings and non-controlling interest related to distributions declared to the non-controlling interest in the prior year. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss at September 26, 2020 and December 28, 2019 were as follows: (In thousands) September 26, 2020 December 28, 2019 Foreign currency adjustment $ (1,684 ) $ (1,496 ) Interest rate swap agreements, net of tax (161 ) (42 ) Forward contracts related to foreign currency exchange rates 7 — Total accumulated other comprehensive loss $ (1,838 ) $ (1,538 ) Non-controlling interest The Company is the sole managing member of New Holdco and, as a result, consolidates the financial results of New Holdco. Prior to April 1, 2020, the Company reported a non-controlling interest representing the economic interest in New Holdco held by the former equity holders of Buddy's (the "Buddy’s Members"). The New Holdco LLC Agreement provided that the Buddy’s Members could, from time to time, have required the Company to redeem all or a portion of their New Holdco units for newly-issued shares of common stock on a basis of one New Holdco unit and one-fifth of a share of Preferred Stock of the Company for one share of common stock of the Company. In connection with any redemption or exchange, the Company received a corresponding number of New Holdco units, increasing its total ownership interest in New Holdco. Changes in the Company's ownership interest in New Holdco while it retains their controlling interest in New Holdco were accounted for as equity transactions. As such, redemptions or direct exchanges of New Holdco units by the Buddy’s Members resulted in a change in ownership and reduced the amount recorded as non-controlling interest and increased additional paid-in capital. On March 26, 2020, the Company redeemed 3,937,726 New Holdco units and 787,545 shares of preferred stock for common stock. On April 1, 2020, the Company redeemed the remaining 5,495,606 New Holdco units and 1,099,121 shares of preferred stock for common stock and the Company is the sole owner of New Holdco. The exchange of New Holdco units for common stock resulted in an increase in the tax basis of the net assets of New Holdco and a liability to be recognized pursuant to the TRA. The difference of $10.0 million in the adjustment of the deferred tax balances and the tax receivable agreement liability was recorded as an adjustment to additional paid-in-capital. Refer to "Note 7. Income Taxes" for further discussion of the TRA. Preferred Stock The Company has authorized the issuance of 20.0 million shares of preferred stock. Preferred stock outstanding for the periods ended September 26, 2020 and December 28, 2019 is as follows: Preferred Stock September 26, 2020 December 28, 2019 Voting Non-economic Preferred Stock, par value $0.01 per share — 1,886,667 Series A Preferred Stock, par value $0.01 per share 1,200,000 — Shares outstanding 1,200,000 1,886,667 Net Income (Loss) per Share Diluted net income (loss) per share is computed using the weighted-average number of common stock and, if dilutive, the potential common stock outstanding during the period. Potential common stock consists of the incremental common stock issuable upon the exercise of stock options and vesting of restricted stock units. The dilutive effect of outstanding stock options and restricted stock units is reflected in diluted earnings per share by application of the treasury stock method. Additionally, the computation of the diluted net income (loss) per share of common stock assumed the conversion of exchangeable shares, and Preferred Stock, if dilutive. The computation of basic and diluted net income (loss) per share for the three and nine months ended September 26, 2020 and September 30, 2019 is as follows: Three Months Ended Three Months Ended (In thousands, except for share and per share amounts) Common Stock Common Stock Basic and diluted net loss per share: Numerator Allocation of undistributed loss attributable to Franchise Group $ (8,597 ) $ (14,886 ) Less: Preferred dividend declared 169 — Net loss attributable to Franchise Group common stockholders (8,766 ) (14,886 ) Denominator Weighted-average common stock outstanding 39,692,384 15,997,041 Basic and diluted net loss per share $ (0.22 ) $ (0.93 ) Nine Months Ended Nine Months Ended (In thousands, except for share and per share amounts) Common Stock Common Stock Basic net income per share: Numerator Allocation of undistributed income attributable to Franchise Group $ 29,269 $ 18,049 Less: Preferred dividend declared 169 — Net income attributable to Franchise Group common stockholders 29,100 18,049 Denominator Weighted-average common stock outstanding 32,679,576 14,712,297 Basic net income per share $ 0.89 $ 1.23 Diluted net income per share: Numerator Allocation of undistributed earnings for basic computation $ 29,100 $ 18,049 Denominator Number of shares used in basic computation 32,679,576 14,712,297 Weighted-average effect of dilutive securities Employee stock options and restricted stock units 282,329 58,676 Weighted-average diluted shares outstanding 32,961,905 14,770,973 Diluted net income per share $ 0.88 $ 1.22 |
Stock Compensation Plans
Stock Compensation Plans | 9 Months Ended |
Sep. 26, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock Compensation Plans | Stock Compensation Plans 2019 Omnibus Incentive Plan In December 2019, the Company's stockholders approved the Company's 2019 Omnibus Incentive Plan (the "2019 Plan"). The 2019 Plan provides for a variety of awards, including stock options, stock appreciation rights, performance units, performance shares, shares of the Company’s common stock, par value $0.01 per share, restricted stock, restricted stock units, incentive awards, dividend equivalent units and other stock-based awards. Awards under the 2019 Plan may be granted to the Company’s eligible employees, directors, or consultants or advisors. The 2019 Plan provides that an aggregate maximum of 5,000,000 shares of common stock are reserved for issuance under the 2019 Plan, subject to adjustment for certain corporate events. At September 26, 2020 , 4,071,299 shares of common stock remained available for grant. Stock Options Stock option activity during the nine months ended September 26, 2020 was as follows: Number of options Weighted average exercise price Outstanding at December 28, 2019 460,285 $ 10.28 Exercised (50,278 ) 10.35 Expired or forfeited (18,598 ) 11.93 Outstanding at September 26, 2020 391,409 $ 10.19 Intrinsic value is defined as the fair value of the stock less the cost to exercise. The total intrinsic value of stock options outstanding at September 26, 2020 was $4.8 million . Stock options vest from the date of grant to 3 years after the date of grant and expire from 4 years to 5 years after the vesting date. Nonvested stock options activity during the nine months ended September 26, 2020 was as follows: Nonvested options Weighted average exercise price Outstanding at December 28, 2019 215,007 $ 10.11 Vested (133,075 ) 10.46 Expired or forfeited (18,598 ) 11.93 Outstanding at September 26, 2020 63,334 $ 8.83 At September 26, 2020 , unrecognized compensation costs related to nonvested stock options was less than $0.1 million . These costs are expected to be expensed through fiscal 2021. The following table summarizes information about stock options outstanding and exercisable at September 26, 2020 : Options Outstanding Options Exercisable Range of exercise prices Number Weighted average exercise price Weighted average remaining contractual life (in years) Number Weighted average exercise price $0.00 - $10.89 217,500 $ 8.77 4.5 154,166 $ 8.74 $10.90 - $12.79 173,909 11.98 3.5 173,909 11.98 391,409 $ 10.19 328,075 $ 10.46 Restricted Stock Units The Company has awarded restricted stock units to its non-employee directors and certain employees. Restricted stock units are valued at the closing stock price the day preceding the grant date. Compensation costs associated with these restricted shares are amortized on a straight-line basis over the vesting period and recognized as an increase in additional paid-in capital. At September 26, 2020 , unrecognized compensation cost related to restricted stock units was $15.1 million. These costs are expected to be recognized through fiscal 2023. In the nine months ended September 26, 2020 , the Company awarded performance restricted stock units with an estimated fair value of $3.7 million to certain officers and employees. Each employee has the opportunity to earn an amount between 0% and 150% of the individual target award contingent on the Company meeting certain performance targets for the period beginning December 28, 2019 and ending on December 31, 2022. Provided the vesting conditions are satisfied, the awards will vest at the end of the performance period. The estimated value is to be expensed over the performance period. The Company recognized $0.6 million of expense related to these performance restricted stock units in the nine months ended September 26, 2020 . The estimated fair value of these performance restricted stock units was determined using the Company's closing price on the grant date. In the nine months ended September 26, 2020 , the Company also awarded restricted stock units with a fair value of $3.7 million to certain officers and employees. One-third of the awards will vest each year on the anniversary date of the grant. The Company recognized $0.6 million of expense related to these restricted stock units in the nine months ended September 26, 2020 . The Company also awarded restricted stock units with a fair value of $0.7 million to directors of the Company. The awards will vest on the anniversary date of the grant. The Company recognized $0.4 million of expense related to these restricted stock units in the nine months ended September 26, 2020 . The fair value of restricted stock units was determined using the Company's closing price on the grant date. Restricted stock activity during the nine months ended September 26, 2020 was as follows: Number of restricted stock units Weighted average fair value at grant date Balance at December 28, 2019 671,039 $ 13.99 Granted 337,713 24.72 Vested (34,701 ) 10.75 Canceled (16,698 ) 19.49 Balance at September 26, 2020 957,353 $ 17.80 Stock Compensation Expense The Company recorded $6.3 million of expense related to stock awards for the nine months ended September 26, 2020 . |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 26, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets and liabilities subject to fair value measurements are classified according to a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. Valuation methodologies for the fair value hierarchy are as follows: • Level 1 — Quoted prices for identical assets and liabilities in active markets. • Level 2 — Quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-based valuations in which all significant inputs are observable in the market. • Level 3 — Unobservable inputs in which little or no market data exists, therefore, requiring an entity to develop its own assumptions. The Company measures or monitors certain of its assets and liabilities on a fair value basis. Fair value is used on a recurring basis for those assets and liabilities for which fair value is the primary basis of accounting. Other assets and liabilities are measured at fair value on a nonrecurring basis; that is, they are subject to fair value adjustment in certain circumstances, such as when there is evidence of impairment. The following tables present, for each of the fair value hierarchy levels, the assets and liabilities that are measured at fair value on a recurring and nonrecurring basis at September 26, 2020 and December 28, 2019 . September 26, 2020 Fair value measurements using (In thousands) Total Level 1 Level 2 Level 3 Assets: Recurring assets: Cash equivalents $ 31 $ 31 $ — $ — Total recurring assets 31 31 — — Nonrecurring assets: Impaired accounts and notes receivable, net of unrecognized revenue and allowance 11,217 — — 11,217 Total nonrecurring assets 11,217 — — 11,217 Total recurring and nonrecurring assets $ 11,248 $ 31 $ — $ 11,217 Liabilities: Recurring liabilities: Forward contract related to foreign currency exchange rates $ 180 $ — $ — $ 180 Contingent consideration included in obligations due former ADs, franchisees and others 355 — — 355 Interest rate swap agreement 161 — 161 — Total recurring liabilities $ 696 $ — $ 161 $ 535 December 28, 2019 Fair value measurements using (In thousands) Total Level 1 Level 2 Level 3 Assets: Recurring assets: Cash equivalents $ 4,253 $ 4,253 $ — $ — Total recurring assets 4,253 4,253 — — Nonrecurring assets: Impaired accounts and notes receivable, net of unrecognized revenue 7,310 — — 7,310 Total nonrecurring assets 7,310 — — 7,310 Total recurring and nonrecurring assets $ 11,563 $ 4,253 $ — $ 7,310 Liabilities: Recurring liabilities: Contingent consideration included in obligations due to former ADs, franchisees and others $ 916 $ — $ — $ 916 Interest rate swap agreement 58 — 58 — Total recurring liabilities $ 974 $ — $ 58 $ 916 The Company's policy is to recognize transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. There were no transfers into or out of Level 1 or 2 recurring fair value measurements for the nine months ended September 26, 2020 , as well as the year ended December 28, 2019. The following methods and assumptions are used to estimate the fair value of the Company's financial instruments. Cash equivalents: The carrying amounts approximate fair value because of the short maturity of these instruments. Cash equivalent financial instruments consist of money market accounts. Impaired accounts and notes receivable: Accounts and notes receivable are considered to be impaired if the net amounts due exceed the fair value of the underlying franchise or if management considers it probable that all principal and interest will not be collected when contractually due. In establishing the estimated fair value of the underlying franchise, consideration is given to a variety of factors, including, recent comparable sales of Company-owned stores, sales between franchisees, the net fees of open offices, and the number of unopened offices. Contingent consideration included in long-term obligations: Contingent consideration is carried at fair value. The fair value of these obligations was determined based upon the estimated future net revenues of the acquired businesses. Interest rate swap agreement: Value of interest rate swap on variable rate mortgage debt. The fair value of this instrument was determined based on third-party market research. Other Fair Value Measurements Accounting standards require the disclosure of the estimated fair value of financial instruments that are not recorded at fair value. For the financial instruments not recorded at fair value, estimates of fair value are made at a point in time based on relevant market data and information about the financial instrument. No readily available market exists for a significant portion of the Company's financial instruments. Fair value estimates for these instruments are based on current economic conditions, interest rate risk characteristics, and other factors. Many of these estimates involve uncertainties and matters of significant judgment and cannot be determined with precision. Therefore, the calculated fair value estimates in many instances cannot be substantiated by comparison to independent markets and, in many cases, may not be realizable in a current sale of the instrument. In addition, changes in assumptions could significantly affect these fair value estimates. The following methods and assumptions were used by the Company in estimating the fair value of these financial instruments. Receivables other than notes, other current assets, accounts payable and accrued expenses, and due to ADs: The carrying amounts approximate fair value because of the short maturity of these instruments (Level 1). Notes receivable: The carrying amount approximates fair value because the interest rate charged by the Company on these notes approximates rates currently offered by local lending institutions for loans of similar terms to individuals/entities with comparable credit risk (Level 3). Long-term debt: The carrying amount approximates fair value because the interest rate paid has a variable component (Level 2). |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 26, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company considers directors and their affiliated companies, as well as named executive officers and members of their immediate families, to be related parties. Brian Kahn and Andrew Laurence As of September 26, 2020 , Mr. Kahn held approximately 32.5% of the aggregate ownership of the Company's common stock directly or through entities under his control, including Vintage. Vintage and its affiliates held approximately 19% of the aggregate voting power of the Company through their ownership of common stock as of September 26, 2020 . Mr. Kahn and Mr. Laurence, principals of Vintage, are members of the Company's Board of Directors with Mr. Laurence serving as the Company's Chairman of the Board until March 31, 2020. Mr. Kahn is the President and Chief Executive Officer of the Company and Mr. Laurence is an Executive Vice President of the Company. Stock Subscription Agreement. On January 6, 2020, Vintage affiliates purchased 2,354,000 shares of the Company's common stock for $28.2 million under a subscription agreement dated August 7, 2019 with the Company. Buddy's Franchises. Mr. Kahn had an equity interest in an entity that owned three Buddy's franchises. The entity sold the franchisees on June 26, 2020 and Mr. Kahn no longer has an interest in any franchises of the Company. Mr. Kahn's brother-in- law owns seven Buddy's franchisees. All transactions between the Company's Buddy's segment and Mr. Kahn's brother-in-law are conducted on a basis consistent with other franchisees. Bryant Riley (former director) Mr. Riley, through controlled entities or affiliates held approximately 11% of the aggregate ownership of the Company's common stock as of September 26, 2020 . Mr. Riley was also a member of the Company's Board of Directors from September 2018 through March 2020. Credit Agreements. On December 16, 2019, the Company entered into the Vitamin Shoppe Term Loan with an entity controlled by Mr. Riley. On February 14, 2020, the Company entered into a $675 million credit facility, which included a $575 million FGNH Credit Agreement and a $100 million FGNH ABL Term Loan with an entity controlled by Mr. Riley acting as the administrative agent. During the nine months ended September 26, 2020 , the Company borrowed and repaid an $11.0 million promissory note with an entity controlled by Mr. Riley. On September 23, 2020, the Company repaid in full all amounts that were outstanding under the FGNH ABL Term Loan and terminated the FGNH ABL Credit Agreement . Stock Subscription Agreements. On February 7, 2020, Mr. Riley, and entities or affiliates of Mr. Riley purchased 669,678 shares of the Company's common stock for $11.4 million under the Equity Financing as defined above in "Note 8. Stockholder's Equity". Fee Letters. On February 14, 2020, the Company entered into a fee letter with B. Riley pursuant to which B. Riley was entitled to receive $5 million for advisory services provided for the American Freight Acquisition. B. Riley received payment for these services on June 26, 2020. On February 19, 2020, the Company entered into a fee letter with B. Riley pursuant to which B. Riley received an equity fee equal to 6% of the $36.0 million of equity raised by B. Riley for the Company as part of the Equity Financing (as defined above in "Note 8. Stockholder's Equity"). Backstop ABL Commitment Letter. On May 1, 2020, in connection with our acquisition of American Freight and the ABL Credit Agreement, the Company entered into an ABL Commitment Letter with B. Riley pursuant to which B. Riley agreed to provide, subject to the terms and conditions set forth therein, a backstop commitment for a $100.0 million asset-based lending facility. The ABL Commitment Letter was terminated on September 25, 2020. Underwritten Offering of Common Stock. On June 30, 2020, the Company completed an underwritten offering of its common stock in which B. Riley FBR, an affiliate of B. Riley, acted as representative of the underwriters. In connection with the offering, B. Riley FBR and the other underwriters in the offering were entitled to an underwriting discount of approximately $5.4 million and reimbursement of certain out-of-pocket expenses incurred in connection with the offering. Underwritten Offering of Preferred Stock. On September 15, 2020, the Company completed an underwritten offering of its Series A Preferred Stock in which B. Riley Securities, an affiliate of B. Riley, acted as representative of the underwriters. In connection with the offering, B. Riley Securities and the other underwriters in the offering were entitled to an underwriting discount and reimbursement of certain out-of-pocket expenses incurred of approximately $0.9 million and B. Riley Securities was entitled to a structuring fee of $0.3 million. M. Brent Turner Mr. Turner is the President and Chief Executive Officer of the Company’s Liberty Tax segment. Revolution Agreement. The Company entered into a one-year Services Agreement (the “Revolution Agreement”) with Revolution Financial, Inc. (“Revolution”) effective as August 23, 2019. Mr. Turner serves as the Chief Executive Officer of Revolution. The Revolution Agreement provides for certain transition services, including leased office space and information technology personnel. Pursuant to the terms as provided in the Revolution Agreement, fees for each of the services provided by Revolution are calculated based on the actual costs for each applicable service to be paid by the Company. For the transition services provided by the Company in retail locations, which includes the provision of space and staffing, Revolution will pay the Company 50% of net revenue. The Revolution Agreement expired on August 23, 2020. Michael S. Piper Mr. Piper is the Chief Financial Officer of the Company's Liberty Tax segment. On February 7, 2020, Mr. Piper purchased 123,529 shares for $2.1 million under the Equity Financing as defined above in "Note 8. Stockholders' Equity". Steve Belford The Company's American Freight segment leases retail space and purchases inventory from entities either fully or partially owned by Steve Belford, the former Chief Executive Officer of American Freight. Mr. Belford's employment with American Freight ended on April 6, 2020. In the nine months ended September 26, 2020 , American Freight paid these entities approximately $2.9 million under the lease obligations and purchased approximately $26.6 million of inventory. Tax Receivable Agreement In connection with the Buddy's Acquisition, the Company entered into the Tax Receivable Agreement with the Buddy's Members that provides for the payment to the Buddy's Members of 40% of the amount of any tax benefits that the Company actually realizes as a result of increases in the tax basis of the net assets of New Holdco resulting from any redemptions or exchanges of New Holdco units. Amounts due under the Tax Receivable Agreement to the Buddy's Members as of September 26, 2020 were $17.2 million which is recorded in "Other non-current liabilities" in the accompanying condensed consolidated balance sheets. No payments were made to member of New Holdco pursuant to the Tax Receivable Agreement during the quarter ended September 26, 2020 . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 26, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the ordinary course of operations, the Company may become a party to legal proceedings. Based upon information currently available, management believes that such legal proceedings, individually or in the aggregate, will not have a material adverse effect on the Company's business, financial condition, cash flows, or results of operations except as provided below. Eastern District of New York Securities Litigation In Re Liberty Tax, Inc. Securities Litigation. This case consolidated two previously filed cases on July 12, 2018. The case, among other things, asserts that the Company’s SEC filings over a multi-year period failed to disclose the alleged misconduct of the individual defendants and that disclosure of the alleged misconduct caused the Company’s stock price to drop and, thereby harm the purported class of stockholders. The class period is alleged to be October 1, 2013 through February 23, 2018. The defendants filed a joint motion to dismiss the Consolidated Amended Class Action Complaint on September 17, 2018 which was granted on January 17, 2020. The Plaintiff filed their notice to appeal to the United States Court of Appeals for the Second Circuit on February 19, 2020. The Second Circuit set an expedited briefing schedule for the appeal. Appellant's brief was filed on May 5, 2020 and Appellant’s opposition brief was filed on June 9, 2020. On September 30, 2020, the Court of Appeals for the Second Circuit affirmed the January 17, 2020 decision by the District Court for the Eastern District of New York, dismissing of the Consolidated Amended Class Action Complaint with prejudice. Stockholder Class Action and Derivative Complaint On August 12, 2019, Asbestos Workers’ Philadelphia Pension Fund, individually and on behalf of all others similarly situated and derivatively on behalf of the Company filed a class action and derivative complaint (the “Derivative Complaint”) in the Court of Chancery of the State of Delaware, against Matthew Avril, Patrick A. Cozza, Thomas Herskovits, Brian R. Kahn, Andrew M. Laurence, Lawrence Miller, G. William Minner Jr., Bryant R. Riley, Kenneth M. Young, (collectively the “Derivative Complaint Individual Defendants”), and against Vintage, B. Riley, and the Company as a Nominal Defendant. The Derivative Complaint alleges breach of fiduciary duty against the Derivative Complaint Individual Defendants based on the following allegations: (a) causing the Company to completely transform its business model and to acquire Buddy’s at an inflated price, (b) transfer the control of the Company to Vintage and B. Riley for no premium and without a stockholder vote, (c) allowing Vintage and B. Riley’s other former stockholders to unfairly extract additional value from the Company by virtue of a TRA, (d) the offering to the Company's non-Vintage and non-B. Riley stockholders of an inadequate price for their shares of Company stock ($12.00 per share), (e) disseminating materially misleading and/or omissive Tender Offer documents, and (f) issuing additional Company shares to Vintage at less than fair value to fund the Tender Offer and Vitamin Shoppe Acquisition. The Derivative Complaint also includes a count of unjust enrichment against Vintage and B. Riley. The Derivative Complaint seeks: (a) declaration that the action is properly maintainable as a class action; (b) a finding the Individual Defendants are liable for breaching their fiduciary duties owed to the class and the Company; (c) a finding that demand on the Company's Board is excused as futile; (d) enjoining the consummation of the Tender Offer unless and until all material information necessary for the Company's stockholders to make a fully informed tender decision has been disclosed; (e) a finding Vintage and B. Riley are liable for unjust enrichment; (f) an award to Plaintiff and the other members of the class damages in an amount which may be proven at trial; (g) an award to Plaintiff and the other members of the class pre-judgment and post-judgment interest, as well as their reasonable attorneys’ and expert witness fees and other costs; (h) an award to the Company in the amount of damages it sustained as a result of Individual Defendants’ breaches of fiduciary duties to the Company; and (i) awarding such other and further relief as this Court may deem just and proper. Simultaneously with the filing of the Derivative Complaint, the Plaintiff filed a motion seeking expedited proceedings. The motion was withdrawn as the Derivative Complaint Individual Defendants agreed to produce certain documents. On October 23, 2019, the Plaintiff filed a Verified Amended Stockholder Class Action and Derivative Complaint (the “Amended Complaint”), following the Company’s filing of the amended and restated offer to purchase on October 16, 2019 (the “Offer to Purchase”). The Amended Complaint contained substantially similar allegations but revised certain allegations based on disclosures contained in, or purportedly omitted, from the Offer to Purchase. The Plaintiff filed a Motion for Preliminary Injunction on October 25, 2019, seeking to prevent the consummation of the pending Offer to Purchase unless additional information was disclosed. On November 5, 2019, the Company filed Amendment No. 5 to the Offer to Purchase making certain additional disclosures, and Plaintiff withdrew its Motion for Preliminary Injunction. On February 7, 2020, Matthew Sciabacucchi, a purported stockholder of the Company, filed a motion to intervene to pursue some or all of the derivative claims pending in the Court of Chancery. Mr. Sciabacucchi’s motion states that Asbestos Workers’ Philadelphia Pension Fund has sold its shares in the Company. The motion to intervene was granted March 10, 2020. On June 8, 2020 the Court entered an order governing briefing on Plaintiff’s petition for an interim award of attorney’s fees. Plaintiff’s opening brief was filed on June 8, 2020. Defendant's opposition was filed on July 23, 2020, and Plaintiff’s reply was due on or before August 6, 2020. The Court held oral arguments on August 18, 2020 and reserved decision on Plaintiff’s motion for interim fees. On September 29, 2020, the parties agreed to settle this matter in principle and the matter has been stayed pending the parties’ filing of settlement papers. The settlement will contain broad and customary releases. Despite the parties' desire to settle the matter, there is no assurance that the settlement will be approved by the Delaware Court of Chancery. The Company does not expect the settlement to be material to the Company. Class Action Litigation Rene Labrado v. JTH Tax, Inc. On July 3, 2018, a class action complaint was filed in the Superior Court of California, County of Los Angeles by a former employee for herself and on behalf of all other “similarly situated” persons. The Complaint alleges, among other things, that the Company allegedly violated various provisions of the California Labor Code, including: unpaid overtime, unpaid meal period premiums, unpaid rest premiums, unpaid minimum wages, final wages not timely paid, wages not timely paid, non-compliant wage statements, failure to keep pay records, unreimbursed business expenses and violation of California Business and Profession Code Section 17200. The Complaint seeks actual, consequential and incidental losses and damages, injunctive relief and other damages. The Company highly disputes the allegations set forth in the Complaint and filed a motion to dismiss. On May 29, 2019, the Court denied the Company’s motion to dismiss, but granted the Company leave to file a motion to strike. The Company filed a motion to strike and on August 20, 2019, the Court granted in part and denied in part the Company’s motion. The Court provided the Company with twenty days to file its answer to the Complaint and lifted the discovery stay. A status conference was held on March 3, 2020 where the Court set a hearing on the class certification for December 18, 2020. Department of Justice ("DOJ") and IRS Matters On December 3, 2019, the DOJ initiated a legal proceeding against the Company, in the U.S. District Court for the Eastern District of Virginia. Also, on December 3, 2019, the DOJ and the Company filed a joint motion asking the court to approve a proposed order setting forth certain enhancements to the Company's Liberty Tax segments compliance program and requiring the Company to retain an independent monitor to oversee the implementation of the required enhancements to the compliance program. The monitor will work with the Company's Liberty Tax segments compliance team and may make recommendations for further refinements to improve the tax compliance program. As part of the proposed order, the Company also agreed that it would not rehire or otherwise engage the Company’s former chairman, John T. Hewitt, under whose supervision the conduct at issue occurred, and agreed not to grant Mr. Hewitt any options or other rights to acquire equity in the Company, or to nominate him to the Company’s Board of Directors. On December 20, 2019 the Court granted the joint motion for the proposed order and the confidentiality motion, which fully resolved the legal proceeding initiated by DOJ. In addition, the Company entered into a settlement agreement resolving the previously disclosed investigation by the IRS with respect to the tax return preparation activities of the Company’s Liberty Tax segments franchise operations and Company-owned stores. Pursuant to that agreement, the Company agreed to make a compliance payment to the IRS in the amount of $3.0 million , to be paid in installments over four years, starting with an upfront payment of $1.0 million , followed by a $0.5 million payment on each anniversary thereof. As previously disclosed, the Company expects that the increased costs to enhance its compliance program could exceed $1.0 million per year over several years. Other Matters Convergent Mobile, Inc. v. JTH Tax, Inc. On August 26, 2019, Convergent Mobile, Inc. (“Convergent”) filed a complaint in the Superior Court of the State of California, County of Sonoma, against the Company (the "California Complaint"). The California Complaint alleges that the Company breached a contract between it and Convergent, and Convergent has asserted counts for breach of contract, promissory estoppel, and breach of the covenant of good faith and fair dealing. The California Complaint generally seeks damages according to proof, special damages according to proof, interest, attorneys’ fees and cost. The Company removed the matter to the federal district court for the Northern District of California and filed a motion to dismiss and motion to strike. On January 16, 2020, the Court vacated the previously scheduled hearing on Company’s motion to dismiss and motion to strike and stated a written opinion would be forthcoming. On April 22, 2020, the Court granted in part and denied in part the Company's motion to dismiss. The Court denied the Company's motion to strike. The Company filed its answer and a counterclaim against Convergent and the matter is proceeding in discovery. The Company disputes these claims and intends to defend the matter vigorously. The Company is also party to claims and lawsuits that are considered to be ordinary, routine litigation incidental to the business, including claims and lawsuits concerning the preparation of customers' income tax returns, the fees charged to customers for various products and services, relationships with franchisees, intellectual property disputes, employment matters, and contract disputes. Although the Company cannot provide assurance that it will ultimately prevail in each instance, it believes the amount, if any, it will be required to pay in the discharge of liabilities or settlements in these claims will not have a material adverse impact on its consolidated results of operations, financial position, or cash flows. |
Segments (Notes)
Segments (Notes) | 9 Months Ended |
Sep. 26, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | (13) Segments The Company's operations are conducted in four reporting business segments: Vitamin Shoppe, American Freight, Liberty Tax and Buddy's. The Company defines its segments as those operations which results its chief operating decision maker ("CODM") regularly reviews to analyze performance and allocate resources. The results of operations of Buddy's are included in the Company's results of operations beginning on July 10, 2019, the results of operations of Vitamin Shoppe are included in the Company's results of operations beginning on December 16, 2019, while the results of operations of American Freight are included in the Company's results of operations beginning on February 14, 2020. The results of operations of the Sears Outlet business are included in the Company's results of operations beginning on October 23, 2019 and are included in the results of operations of the American Freight segment. Prior to July 10, 2019, the Company operated as a single reportable segment that was comprised of Liberty Tax. The Vitamin Shoppe segment is an omni-channel specialty retailer and wellness lifestyle company with the mission of providing customers with the most trusted products, guidance, and services to help them become their best selves, however they define it. The Vitamin Shoppe segment offers a comprehensive assortment of nutritional solutions, including vitamins, minerals, specialty supplements, herbs, sports nutrition, homeopathic remedies, green living products, and natural beauty aids. The Vitamin Shoppe segment consists of our operations under the "Vitamin Shoppe" brand and is headquartered in Secaucus, New Jersey. The American Freight segment operates under the American Freight banner. American Freight provides in-store and online access to purchase new, one-of-a-kind, out-of-box, discontinued, obsolete, reconditioned, overstocked, scratched and dented household appliances and unbranded furniture and mattresses at value prices. The American Freight segment consists of our operations under the "American Freight" banner and is headquartered in Delaware, Ohio. The Liberty Tax segment is one of the largest providers of tax preparation services in the U.S. and Canada. The Liberty Tax segment includes the Company's operations under the "Liberty Tax," "Liberty Tax Canada" and "Siempre" brands. The Liberty Tax segment and our corporate headquarters are located in Virginia Beach, Virginia. The Buddy's segment leases and sells electronics, residential furniture, appliances and household accessories. The Buddy's segment consists of the Company's operations under the "Buddy's" brand and is headquartered in Orlando, Florida. The Company measures the results of its segments, using, among other measures, each segment's total consolidated revenue, consolidated depreciation, amortization, and impairment charges and consolidated income (loss) from operations. The Company may revise the measurement of each segment's income (loss) from operations as determined by the information regularly reviewed by the CODM. When the measurement of a segment changes, previous period amounts and balances are reclassified to be comparable to the current period's presentation. Total revenues by segment were as follows: Three Months Ended Nine Months Ended (In thousands) September 26, 2020 September 30, 2019 September 26, 2020 September 30, 2019 Total revenue: Vitamin Shoppe $ 266,965 $ — $ 780,588 $ — American Freight 245,212 — 682,386 — Liberty Tax 13,300 5,414 117,992 125,072 Buddy's 25,515 13,506 75,219 13,506 Consolidated total revenue $ 550,992 $ 18,920 $ 1,656,185 $ 138,578 Depreciation, amortization, and impairment charges by segment are as follows: Three Months Ended Nine Months Ended (In thousands) September 26, 2020 September 30, 2019 September 26, 2020 September 30, 2019 Depreciation, amortization, and impairment charges: Vitamin Shoppe $ 11,474 $ — $ 35,204 $ — American Freight 1,806 — 4,272 — Liberty Tax 2,776 3,649 7,219 11,421 Buddy's 1,406 818 4,559 818 Consolidated depreciation, amortization, and impairment charges $ 17,462 $ 4,467 $ 51,254 $ 12,239 Operating income (loss) by segment were as follows: Three Months Ended Nine Months Ended (In thousands) September 26, 2020 September 30, 2019 September 26, 2020 September 30, 2019 Income from operations: Vitamin Shoppe $ 2,849 $ — $ (3,214 ) $ — American Freight 19,940 — 33,949 — Liberty Tax (5,357 ) (14,708 ) 40,121 35,558 Buddy's 5,302 2,232 13,985 2,232 Total Segments 22,734 (12,476 ) 84,841 37,790 Corporate (3,411 ) (12,571 ) (8,108 ) (13,626 ) Consolidated income from operations $ 19,323 $ (25,047 ) $ 76,733 $ 24,164 Total assets by segment were as follows: (In thousands) September 26, 2020 December 28, 2019 Total assets: Vitamin Shoppe $ 620,578 $ 679,646 American Freight 830,902 267,176 Liberty Tax 99,562 123,576 Buddy's 185,197 188,941 Total Segments 1,736,239 1,259,339 Corporate 176,265 39,206 Consolidated total assets $ 1,912,504 $ 1,298,545 Goodwill by segment is as follows: (In thousands) September 26, 2020 December 28, 2019 Goodwill: Vitamin Shoppe $ — $ 4,951 American Freight 370,147 31,028 Liberty Tax 9,003 9,780 Buddy's 90,638 88,542 Consolidated goodwill $ 469,788 $ 134,301 |
Subsequent Event Subsequent Ev
Subsequent Event Subsequent Events (Notes) | Jul. 10, 2020 |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events In October 2020, the Company announced a private offering of $650 million in senior secured notes due 2025. The offering was abandoned due to market conditions as available terms and conditions were not sufficiently attractive to complete the proposed transaction. |
Organization and Significant _2
Organization and Significant Accounting Policies (Policies) | 3 Months Ended | 9 Months Ended |
Mar. 28, 2020 | Sep. 26, 2020 | |
Accounting Policies [Abstract] | ||
Description of Business | (1) Organization and Significant Accounting Policies Description of Business Franchise Group, Inc. (the "Company"), a Delaware corporation, is a franchisor, operator and acquirer of franchised and franchisable businesses that it believes it can scale using its operating expertise. On July 10, 2019, the Company formed Franchise Group New Holdco, LLC (“New Holdco”), which completed the acquisition of Buddy's Newco, LLC ("Buddy's"). On October 23, 2019, the Company completed the acquisition of the Sears Outlet ("Sears Outlet") business from Sears Hometown and Outlet Stores, Inc. (subsequently rebranded as American Freight Outlet). On December 16, 2019, the Company completed its acquisition of The Vitamin Shoppe, Inc. ("Vitamin Shoppe"). On February 14, 2020, the Company completed its acquisition of the American Freight Group, Inc. ("American Freight") as described in “Note 2. Acquisitions”. New Holdco holds all of the Company’s operating subsidiaries. Segment Information | |
Basis of Presentation | Basis of Presentation Revenues have been classified into product, service and other and rental revenues as further discussed in "Note 5. Revenue." Costs of sales for product includes the cost of merchandise, transportation and warehousing costs. Service and other costs of sales include the direct costs of warranties. Rental cost of sales represents the amortization of inventory costs over the leased term. Other operating expenses, including employee costs, depreciation and amortization, and advertising expenses have been classified in selling, general and administrative expenses. The Company also includes occupancy costs in selling, general and administrative expenses. Assets and liabilities of the Company's Canadian operations have been translated into U.S. dollars using the exchange rate in effect at the end of the period. Revenues and expenses have been translated using the average exchange rates in effect each month of the period. Foreign exchange transaction gains and losses are recognized when incurred. The Company reclassifies to accounts payable checks issued in excess of funds available and reports them as cash flow from operating activities. The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information. The condensed consolidated financial statements, including these notes, are unaudited and exclude some of the disclosures required only in annual financial statements. The Company changed its fiscal year end from April 30 to the Saturday closest to December 31st of each year, resulting in an 8-month transition period from May 1, 2019 to December 28, 2019. The consolidated balance sheet data as of December 28, 2019 was derived from the Company’s Transition Report on Form 10-K/T, filed with the U.S. Securities and Exchange Commission (the "SEC") on April 24, 2020 (the "2019 Transition Report"). The Company has provided unaudited historical financial information that was not previously presented for the three and nine months ended September 30, 2019 for comparison purposes. In the opinion of management, all adjustments necessary for a fair presentation of such condensed consolidated financial statements in accordance with GAAP have been recorded. These adjustments consisted only of normal recurring items. The accompanying condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in its 2019 Transition Report. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Merchandise Inventories Inventory for the Buddy's segment is recorded at cost, including shipping and handling fees. Upon purchase, merchandise is not initially depreciated until it is leased or three months after the purchase date. Non-leased merchandise is depreciated on a straight-line basis over a period of 24 months. Leased merchandise is depreciated over the lease term of the rental agreement and recorded in rental cost of revenue. On a weekly basis, all damaged, lost, stolen, or unsalable merchandise identified is written off. Maintenance and repairs of lease merchandise are charged to operations as incurred. Inventory for the American Freight segment is accounted for by banner. Inventory for the American Freight banner is comprised of finished goods and is valued at the lower of cost or market, with cost determined by the first-in, first out method. The Company writes down inventory, the impact of which is reflected in cost of sales in the Consolidated Statements of Operations, if the cost of specific inventory items on hand exceeds the amount the Company expects to be realized from the ultimate sale or disposal of the inventory. These estimates are based on management’s judgment regarding future demand and market conditions and analysis of historical experience. Inventory under the American Freight Outlet banner, previously the Sears Outlet segment, is recorded at the lower of cost or market using the weighted-average cost method. Inventory includes the purchase price of the inventory plus costs of freight for moving merchandise from vendors to distribution centers as well as from distribution centers to stores. A provision for estimated shrinkage is maintained based on the actual historical results of physical inventories. Estimates are compared to the actual results of the physical inventory counts as they are taken and adjust the shrink estimates accordingly. Inventory values are adjusted to the difference between the carrying value and the estimated market value, based on assumptions about future demand or when a permanent markdown indicates that the net realizable value of the inventory is less than cost. Inventory for the Vitamin Shoppe segment is recorded at the lower of cost or market value using the weighted-average cost method. Inventory includes costs directly incurred in bringing the product to its existing condition and location. In addition, the cost of inventory is reduced by purchase discounts and other allowances received from vendors. A markdown reserve is estimated based on a variety of factors, including, but not limited to, the amount of inventory on hand and its remaining shelf life, current and expected market conditions and product expiration dates. In addition, the Company has established a reserve for estimated inventory shrinkage based on the actual, historical shrinkage of its most recent physical inventories adjusted, if necessary, for current economic conditions and business trends. Physical inventories and cycle counts are taken on a regular basis. These adjustments are estimates, which could vary significantly from actual results if future economic conditions, customer demand or competition differ from management expectations. Goodwill and Non-amortizing Intangible Assets Goodwill and non-amortizing intangible assets, including the Buddy's, Vitamin Shoppe and American Freight tradenames, are not amortized, but rather tested for impairment at least annually. In addition, goodwill and non-amortizing intangible assets will be tested on an interim basis if an event or circumstance indicates that it is more likely than not that an impairment loss has been incurred. The Company performs a qualitative and/or quantitative assessment to determine whether it is more likely than not that each reporting unit's fair value is less than its carrying value, including goodwill. If the Company determines that it is more likely than not that the fair value of the reporting unit is less than its carrying value, the Company then estimates the fair value. The Company uses a combination of a market multiple method and a discounted cash flow method to estimate the fair value of its reporting units and recognizes goodwill impairment for any excess of the carrying amount of a reporting unit’s goodwill over its estimated fair value. The Company evaluates the Buddy's, Vitamin Shoppe and American Freight tradenames for impairment by comparing its fair value, based on an income approach using the relief-from-royalty method, to its carrying value. If the carrying value of the asset exceeds its estimated fair value, an impairment loss is recognized in an amount equal to that excess. The Company's reporting units are determined in accordance with the provisions of Accounting Standards Codification (“ASC”) 350, “Intangibles - Goodwill and Other (Topic 350).” The Company performs its annual impairment testing of goodwill and non-amortizing intangible assets on the last day of the first month of the Company's third quarter. Refer to “Note 4. Goodwill and Intangible Assets” for additional information on these balances. Intangible and Long-Lived Assets Impairment Amortization of intangible assets is calculated using the straight-line method over the estimated useful lives of the assets, generally from two to ten years. Long-lived assets, such as property, equipment, and software, and other purchased intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. Recognition and measurement of a potential impairment is performed for these assets at the lowest level where cash flows are individually identifiable. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Fair value is determined through various valuation techniques, including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary. Revenue Recognition The following is a description of the principal activities from which the Company generates its revenues. For more detailed information regarding reportable segments, see "Note 13. Segments." • Product revenues: These include sales of merchandise at the stores and online. Revenue is measured based on the amount of fixed consideration that the Company expects to receive, reduced by estimates for variable consideration such as returns. Revenue also excludes any amounts collected from customers and remitted or payable to governmental authorities. In arrangements where the Company has multiple performance obligations, the transaction price is allocated to each performance obligation using the relative stand-alone selling price. The Company recognizes revenues from retail operations upon the transfer of control of goods to the customer. The Company satisfies its performance obligations at the point of sale for retail store transactions and upon delivery for online transactions. The Company recognizes revenue for retail store and online transactions when it transfers control of the goods to the customer. Merchandise sales also include payments received for the exercise of the early purchase option offered through rental-purchase agreements or merchandise sold through point of sale transactions. Revenue for merchandise sales associated with rental purchase agreements is recognized when payment is received, and ownership of the merchandise passes to the customer. The remaining net value of merchandise sold is recorded to cost of sales at the time of the transaction. • Service and other revenues: These include royalties and advertising fees from franchisees, fees from the sales of franchises and area developer ("AD") territories, financial products, interest income from loans to franchisees and ADs, tax preparation services in the Company-owned stores, electronic filing fees, services and extended-service plans and financing programs. Commissions earned on services are presented net of related costs because the Company is acting as an agent in arranging the services for the customer and does not control the services being rendered. The Company recognizes revenue on the commissions on extended-service plans when it transfers control of the related goods to the customer. The Company recognizes franchise fee and AD fee revenue for the sales of individual territories on a straight-line basis over the initial contract term when the obligations of the Company to prepare the franchisee and AD for operation are substantially complete, not to exceed the estimated amount of cash to be received. Royalties and advertising fees are recognized as franchise territories generate sales. Tax return preparation fees and financial products revenue are recognized as revenue in the period in which related tax return is filed for the customer. Discounts for promotional programs are recorded at the time the return is filed and are recorded as reductions to revenues. Interest income on notes receivable is recognized based on the outstanding principal note balance less unrecognized revenue unless it is put on non-accrual status. Interest income on the unrecognized revenue portion of notes receivable is recognized when received. For accounts receivable, interest income is recognized based on the outstanding receivable balance over 30 days old, net of an allowance. • Rental revenues: The Company provides merchandise, consisting of consumer electronics, computers, residential furniture, appliances, and household accessories to its customers pursuant to rental-purchase agreements which provide for weekly, semi-monthly or monthly non-refundable rental payments. The average rental term is twelve to eighteen months and the Company maintains ownership of the lease merchandise until all payment obligations are satisfied under sales and lease ownership agreements. Customers have the option to purchase the leased goods at any point in the lease term. Customers can terminate the agreement at the end of any rental term without penalty. Therefore, rental transactions are accounted for as operating leases and rental revenue is recognized over the rental term. Cash received prior to the beginning of the lease term is recorded as deferred revenue. Revenue related to various reinstatement or late fees are recognized when paid by the customer. The Company offers additional product plans along with rental agreements that provide customers with liability protection against significant damage or loss of a product, and club membership benefits, including various discount programs, product services and replacement benefits in the event merchandise is damaged or lost. Customers renew product plans in conjunction with their rental term renewals and can cancel the plans at any time. Revenue for product plans is recognized over the term of the plan. Leases The Company's lease portfolio primarily consists of leases for its retail store locations, office space and distribution centers. The Company also leases certain office equipment under finance leases. The finance lease right of use assets are included in Property, equipment and software and the finance lease liabilities are included in current installments of long-term obligations, and long-term obligations. The finance leases are immaterial to the financial statements. The Company subleases some of its real estate and equipment leases. The Company determines if an arrangement is a lease at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether the Company obtains substantially all of the economic benefits from and has the ability to direct the use of the asset. Leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheets; the Company recognizes expense for these leases on a straight-line basis over the lease term. For leases with an initial term in excess of 12 months, lease right-of-use assets and lease liabilities are recognized based on the present value of the future lease payments over the committed lease term at the lease commencement date. The Company’s leases do not provide an implicit rate; therefore, the Company uses its incremental borrowing rate and the information available at the lease commencement date in determining the present value of future lease payments. Most leases include one or more options to renew and the exercise of renewal options is at the Company’s sole discretion. The Company does not include renewal options in its determination of the lease term unless the renewals are deemed to be reasonably certain at lease commencement. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company uses the long-lived assets impairment guidance in ASC Subtopic 360-10, “Property, Plant, and Equipment - Overall,” to determine whether a right-of-use asset is impaired, and if so, the amount of the impairment loss to recognize. The Company has lease agreements with lease and non-lease components, which the Company elects to combine as one lease component for all classes of underlying assets. Non-lease components include variable costs based on actual costs incurred by the lessor related to the payment of real estate taxes, common area maintenance, and insurance. These variable payments are expensed as incurred as variable lease costs. Due to the COVID-19 pandemic, the Company has been negotiating lease concessions with landlords. The lease concessions have been in the form of lease forgiveness, lease deferrals and lease deferrals with term extensions. If the total payments in the modified lease are substantially the same as or less than total payments in the original lease, the Company has elected to not evaluate whether the concession is a lease modification as defined in ASC 842 - "Leases". Deferred Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities, which are shown on the condensed consolidated balance sheets, are recognized for the future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company has elected to classify interest charged on a tax settlement in interest expense, and accrued penalties, if any, in selling, general, and administrative expenses. The determination of the Company's provision for income taxes requires significant judgment, the use of estimates, and the interpretation and application of complex tax laws. Significant judgment is required in assessing the timing and amounts of deductible and taxable items. The Company records unrecognized tax benefit liabilities for known or anticipated tax issues based on an analysis of whether, and the extent to which, additional taxes will be due. | |
New Accounting Pronouncements, Policy | Accounting Pronouncements |
Notes and Accounts Receivable (
Notes and Accounts Receivable (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Receivables [Abstract] | |
Schedule of activity in the allowance for doubtful accounts | Activity in the allowance for doubtful accounts for the three and nine months ended September 26, 2020 and September 30, 2019 was as follows: Three Months Ended Nine Months Ended (In thousands) September 26, 2020 September 30, 2019 September 26, 2020 September 30, 2019 Balance at beginning of period $ 10,678 $ 11,860 $ 9,985 $ 12,353 Provision for doubtful accounts (99 ) 1,641 3,425 6,411 Write-offs and reduction from repurchases of franchises (2,244 ) (4,173 ) (4,994 ) (9,508 ) Foreign currency adjustment 50 (27 ) (31 ) 45 Balance at end of period $ 8,385 $ 9,301 $ 8,385 $ 9,301 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill for the nine months ended September 26, 2020 and the transition period ended December 28, 2019 were as follows: (In thousands) September 26, 2020 December 28, 2019 Balance at beginning of period $ 134,301 $ 6,566 Acquisitions of assets from franchisees and third parties 920 3,658 Buddy's Acquisition — 75,038 Buddy's Partners Asset Acquisition — 7,217 A-Team Leasing Acquisition — 6,287 Sears Outlet Acquisition — 31,028 American Freight Acquisition 335,472 — Vitamin Shoppe Acquisition — 4,951 Disposals and foreign currency changes, net (1,660 ) (444 ) Purchase price reallocation 792 — Impairments (37 ) — Balance at end of period $ 469,788 $ 134,301 |
Schedule of the amortizable other intangible assets | Components of intangible assets as of September 26, 2020 and December 28, 2019 were as follows: September 26, 2020 (In thousands) Gross carrying amount Accumulated amortization Net carrying amount Tradenames (1) $ 94,300 $ (100 ) $ 94,200 Customer contracts 12,700 (2,521 ) 10,179 Franchise agreements and non-compete agreements 10,581 (1,302 ) 9,279 Customer lists 4,120 (2,698 ) 1,422 Reacquired rights 10,241 (2,249 ) 7,992 AD rights 39,237 (16,831 ) 22,406 Total intangible assets $ 171,179 $ (25,701 ) $ 145,478 (1) $70.2 million, $11.1 million and $12.0 million of tradenames were acquired in the American Freight Acquisition, Buddy's Acquisition and Vitamin Shoppe Acquisition, respectively. These tradenames have an indefinite life and they are tested for impairment on an annual basis. December 28, 2019 (In thousands) Gross carrying amount Accumulated amortization Net carrying amount Tradenames (1) $ 23,534 $ (72 ) $ 23,462 Customer contracts 12,736 (886 ) 11,850 Franchise agreements and non-compete agreements 10,609 (486 ) 10,123 Customer lists 4,338 (2,559 ) 1,779 Reacquired rights 11,577 (2,053 ) 9,524 AD rights 37,263 (16,411 ) 20,852 Total intangible assets $ 100,057 $ (22,467 ) $ 77,590 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The components of accumulated other comprehensive loss at September 26, 2020 and December 28, 2019 were as follows: (In thousands) September 26, 2020 December 28, 2019 Foreign currency adjustment $ (1,684 ) $ (1,496 ) Interest rate swap agreements, net of tax (161 ) (42 ) Forward contracts related to foreign currency exchange rates 7 — Total accumulated other comprehensive loss $ (1,838 ) $ (1,538 ) |
Schedule of computation of basic and diluted net income (loss) per share | the three and nine months ended September 26, 2020 and September 30, 2019 is as follows: Three Months Ended Three Months Ended (In thousands, except for share and per share amounts) Common Stock Common Stock Basic and diluted net loss per share: Numerator Allocation of undistributed loss attributable to Franchise Group $ (8,597 ) $ (14,886 ) Less: Preferred dividend declared 169 — Net loss attributable to Franchise Group common stockholders (8,766 ) (14,886 ) Denominator Weighted-average common stock outstanding 39,692,384 15,997,041 Basic and diluted net loss per share $ (0.22 ) $ (0.93 ) Nine Months Ended Nine Months Ended (In thousands, except for share and per share amounts) Common Stock Common Stock Basic net income per share: Numerator Allocation of undistributed income attributable to Franchise Group $ 29,269 $ 18,049 Less: Preferred dividend declared 169 — Net income attributable to Franchise Group common stockholders 29,100 18,049 Denominator Weighted-average common stock outstanding 32,679,576 14,712,297 Basic net income per share $ 0.89 $ 1.23 Diluted net income per share: Numerator Allocation of undistributed earnings for basic computation $ 29,100 $ 18,049 Denominator Number of shares used in basic computation 32,679,576 14,712,297 Weighted-average effect of dilutive securities Employee stock options and restricted stock units 282,329 58,676 Weighted-average diluted shares outstanding 32,961,905 14,770,973 Diluted net income per share $ 0.88 $ 1.22 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of information about stock options outstanding and exercisable | The following table summarizes information about stock options outstanding and exercisable at September 26, 2020 : Options Outstanding Options Exercisable Range of exercise prices Number Weighted average exercise price Weighted average remaining contractual life (in years) Number Weighted average exercise price $0.00 - $10.89 217,500 $ 8.77 4.5 154,166 $ 8.74 $10.90 - $12.79 173,909 11.98 3.5 173,909 11.98 391,409 $ 10.19 328,075 $ 10.46 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | Restricted stock activity during the nine months ended September 26, 2020 was as follows: Number of restricted stock units Weighted average fair value at grant date Balance at December 28, 2019 671,039 $ 13.99 Granted 337,713 24.72 Vested (34,701 ) 10.75 Canceled (16,698 ) 19.49 Balance at September 26, 2020 957,353 $ 17.80 |
Schedule of stock option activity | Stock option activity during the nine months ended September 26, 2020 was as follows: Number of options Weighted average exercise price Outstanding at December 28, 2019 460,285 $ 10.28 Exercised (50,278 ) 10.35 Expired or forfeited (18,598 ) 11.93 Outstanding at September 26, 2020 391,409 $ 10.19 |
Schedule of nonvested (options that did not vest in the period in which granted) stock option activity | Nonvested stock options activity during the nine months ended September 26, 2020 was as follows: Nonvested options Weighted average exercise price Outstanding at December 28, 2019 215,007 $ 10.11 Vested (133,075 ) 10.46 Expired or forfeited (18,598 ) 11.93 Outstanding at September 26, 2020 63,334 $ 8.83 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of the assets and liabilities that are measured at fair value on a recurring and nonrecurring basis, for each of the fair value hierarchy levels | The following tables present, for each of the fair value hierarchy levels, the assets and liabilities that are measured at fair value on a recurring and nonrecurring basis at September 26, 2020 and December 28, 2019 . September 26, 2020 Fair value measurements using (In thousands) Total Level 1 Level 2 Level 3 Assets: Recurring assets: Cash equivalents $ 31 $ 31 $ — $ — Total recurring assets 31 31 — — Nonrecurring assets: Impaired accounts and notes receivable, net of unrecognized revenue and allowance 11,217 — — 11,217 Total nonrecurring assets 11,217 — — 11,217 Total recurring and nonrecurring assets $ 11,248 $ 31 $ — $ 11,217 Liabilities: Recurring liabilities: Forward contract related to foreign currency exchange rates $ 180 $ — $ — $ 180 Contingent consideration included in obligations due former ADs, franchisees and others 355 — — 355 Interest rate swap agreement 161 — 161 — Total recurring liabilities $ 696 $ — $ 161 $ 535 December 28, 2019 Fair value measurements using (In thousands) Total Level 1 Level 2 Level 3 Assets: Recurring assets: Cash equivalents $ 4,253 $ 4,253 $ — $ — Total recurring assets 4,253 4,253 — — Nonrecurring assets: Impaired accounts and notes receivable, net of unrecognized revenue 7,310 — — 7,310 Total nonrecurring assets 7,310 — — 7,310 Total recurring and nonrecurring assets $ 11,563 $ 4,253 $ — $ 7,310 Liabilities: Recurring liabilities: Contingent consideration included in obligations due to former ADs, franchisees and others $ 916 $ — $ — $ 916 Interest rate swap agreement 58 — 58 — Total recurring liabilities $ 974 $ — $ 58 $ 916 |
Organization and Significant _3
Organization and Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 8 Months Ended | 9 Months Ended | |||
Sep. 26, 2020 | Sep. 30, 2019 | Dec. 28, 2019 | Sep. 26, 2020 | Sep. 30, 2019 | Jan. 31, 2019 | |
Geographical concentration | ||||||
Deferred Revenue | $ 34,236,000 | $ 10,519,000 | $ 34,236,000 | |||
Income Taxes Receivable, Current | 27,014 | 3,356 | 27,014 | |||
Intangible Assets, Net (Excluding Goodwill) | 145,478,000 | 77,590,000 | 145,478,000 | |||
Assets | 1,912,504,000 | 1,298,545,000 | 1,912,504,000 | |||
Deferred Revenue, Current | 36,461,000 | 16,409,000 | 36,461,000 | |||
Liabilities | 1,503,972,000 | 1,146,784,000 | 1,503,972,000 | |||
Retained Earnings (Accumulated Deficit) | 23,927,000 | 18,388,000 | 23,927,000 | |||
Stockholders' Equity Attributable to Parent | 408,532,000 | 125,391,000 | 408,532,000 | |||
Liabilities and Equity | 1,912,504,000 | 1,298,545,000 | 1,912,504,000 | |||
General and Administrative Expense | 228,194,000 | $ 40,481,000 | 697,670,000 | $ 110,928,000 | ||
Operating Expenses | 531,669,000 | 43,967,000 | 1,579,452,000 | 114,414,000 | ||
Operating Income (Loss) | 19,323,000 | (25,047,000) | $ 24,164,000 | 76,733,000 | 24,164,000 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (8,170,000) | (27,803,000) | (12,202,000) | 19,838,000 | ||
Income Tax Expense (Benefit) | 427,000 | (4,339,000) | (43,561,000) | 10,367,000 | ||
Net Income (Loss) Attributable to Parent | (8,597,000) | (23,464,000) | 31,359,000 | 9,471,000 | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 322,000 | |||||
New Deferrals of Franchise and AD Fees | 21,795,000 | 49,405,000 | ||||
Revenues | $ 550,992,000 | $ 18,920,000 | $ 1,656,185,000 | $ 138,578,000 |
Acquisition (Details)
Acquisition (Details) - USD ($) | Feb. 14, 2020 | Dec. 16, 2019 | Oct. 23, 2019 | Sep. 26, 2020 | Sep. 30, 2019 | Sep. 26, 2020 | Sep. 30, 2019 | Mar. 28, 2020 | Dec. 28, 2019 |
Business Combination, Separately Recognized Transactions, Revenues and Gains Recognized | $ 550,992 | $ 493,504,000 | $ 1,704,844 | $ 1,711,954,000 | |||||
Revenues | 550,992,000 | 18,920,000 | 1,656,185,000 | 138,578,000 | |||||
Net Income (Loss) Attributable to Parent | (8,597,000) | (23,464,000) | 31,359,000 | 9,471,000 | |||||
Acquisition Costs, Cumulative | 9.9 | 9.9 | |||||||
Goodwill | 469,788,000 | 469,788,000 | $ 134,301,000 | ||||||
Long-term Debt, Current Maturities | 112,374,000 | 112,374,000 | 218,384,000 | ||||||
Long-term Debt, Excluding Current Maturities | 516,353,000 | 516,353,000 | $ 245,236,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 357,263,000 | 357,263,000 | |||||||
Business Combination, Separately Recognized Transactions, Expenses and Losses Recognized | (5,201) | $ (25,468,000) | 59,133 | $ 7,728,000 | |||||
Vitamin Shoppe [Member] | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 615,738,000 | 615,738,000 | |||||||
Sears Outlet [Member] | |||||||||
Business Combination, Consideration Transferred | $ 128.8 | ||||||||
American Freight [Member] | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 3,840,000 | 3,840,000 | |||||||
Adjustment, Lease Right of Use | 11.5 | 11.5 | |||||||
Noncash or Part Noncash Acquisition, Investments Acquired | 70,200,000 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 3,284,000 | 3,284,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 99,200,000 | 99,200,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 11,032,000 | 11,032,000 | |||||||
Goodwill | 335,474,000 | 335,474,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Right-Of-Use Asset | 91,101,000 | 91,101,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 1,607,000 | 1,607,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Operating Lease, Liability, Current | 17,242,000 | 17,242,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | 44,696,000 | 44,696,000 | |||||||
Other Accrued Liabilities | 26,451,000 | 26,451,000 | |||||||
Long-term Debt, Current Maturities | 3,210,000 | 3,210,000 | |||||||
Long-term Debt, Excluding Current Maturities | 93,975,000 | 93,975,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | 11,451,000 | 11,451,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Operating Lease, Liability, Noncurrent | 61,450,000 | 61,450,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 258,475,000 | 258,475,000 | |||||||
Buddy's [Member] | |||||||||
Business Combination, Consideration Transferred | $ 122 | ||||||||
Goodwill, Period Increase (Decrease) | 2.1 | ||||||||
American Freight [Member] | |||||||||
Business Combination, Consideration Transferred | $ 357.3 | ||||||||
Leasehold Improvements [Member] | Vitamin Shoppe [Member] | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | $ 7.6 | ||||||||
Furniture, Fixtures, And Equipment [Member] | Vitamin Shoppe [Member] | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 2.2 | 2.2 | |||||||
Software [Member] | Vitamin Shoppe [Member] | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 1.1 | 1.1 | |||||||
Construction in Progress [Member] | Vitamin Shoppe [Member] | |||||||||
Machinery and Equipment, Gross | $ 0.2 | 0.2 | |||||||
Vitamin Shoppe [Member] | |||||||||
Business Combination, Consideration Transferred | $ 161.8 | ||||||||
Goodwill, Period Increase (Decrease) | 5 | ||||||||
Sears Outlet [Member] | |||||||||
Goodwill, Period Increase (Decrease) | 3.6 | ||||||||
American Freight [Member] | |||||||||
Indefinite-lived Intangible Assets Acquired | $ 70.2 |
Accounts and Notes Receivables
Accounts and Notes Receivables (Details) - USD ($) | 3 Months Ended | |||
Mar. 28, 2020 | Sep. 26, 2020 | Dec. 28, 2019 | Mar. 31, 2019 | |
Schedule of Activity Related to Notes Receivable | ||||
Accounts and Other Receivables, Net, Current | $ 48,788 | $ 44,333 | ||
Activity related to notes receivable | ||||
Notes Receivable, Related Parties, Current | 13,975 | 37,994 | ||
interest receivable, current, net | 2,289 | 3,132 | ||
Income Taxes Receivable, Current | 27,014 | 3,356 | ||
Allowance for Doubtful Other Receivables, Current | (7,789) | (9,122) | ||
Total Receivables, Current, Net | 84,277 | 79,693 | ||
Notes Receivable, Related Parties, Noncurrent | 16,691 | 19,501 | ||
Allowance for Doubtful Accounts, non-current | (596) | (863) | ||
Receivables, net, non-current | 16,095 | 18,638 | ||
Receivables, Fair Value Disclosure | $ 100,372 | $ 98,331 | ||
Notes Receivable [Member] | ||||
Schedule of Activity Related to Notes Receivable | ||||
Financing Receivable, Nonaccrual | $ 9,500,000 | $ 8.5 | ||
Franchise-related notes | ||||
Activity related to notes receivable | ||||
Notes Receivable | 5 years | |||
Interest rate (as a percent) | 12.00% | |||
Working capital and equipment notes | ||||
Activity related to notes receivable | ||||
Notes Receivable | 1 year |
Accounts and Notes Receivable A
Accounts and Notes Receivable Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 26, 2020 | Sep. 30, 2019 | Sep. 26, 2020 | Sep. 30, 2019 | Mar. 28, 2020 | Dec. 28, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Accounts and Notes Receivable Gross | $ 81,743 | ||||||||
Allowance for Doubtful Accounts Receivable Additions Charged to Expenses | $ (99) | $ 1,641 | $ 3,425 | $ 6,411 | |||||
Accounts Receivable, Allowance for Credit Loss, Writeoff | (2,244) | (4,173) | (4,994) | (9,508) | |||||
Allowance for Doubtful Accounts Receivable Foreign Currency Adjustment | 50 | $ (27) | (31) | $ 45 | |||||
Accounts Receivable, Allowance for Credit Loss | $ 8,385 | $ 8,385 | 10,678 | $ 9,985 | $ 9,301 | $ 11,860 | $ 12,353 | ||
Notes Receivable [Member] | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Accounts and Notes Receivable Gross | 32,955 | ||||||||
Trade Accounts Receivable [Member] | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Accounts and Notes Receivable Gross | $ 48,788 |
Analysis of Past Due Receivable
Analysis of Past Due Receivables (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 26, 2020 | Mar. 28, 2020 | Sep. 30, 2019 | Sep. 26, 2020 | Sep. 30, 2019 | Dec. 28, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Aging of accounts and notes receivable | |||||||||
Accounts Receivable, Allowance for Credit Loss | $ 8,385,000 | $ 10,678,000 | $ 8,385,000 | $ 9,985,000 | $ 9,301,000 | $ 11,860,000 | $ 12,353,000 | ||
Past due | 40,756,000 | ||||||||
Interest receivable, net | 38,698,000 | ||||||||
Financing Receivable Allowance for Uncollected Interest | 2,289,000 | ||||||||
Financing Receivable Allowance for Uncollected Interest | (2,500,000) | ||||||||
Accounts and Notes Receivable Gross | 81,743,000 | ||||||||
Allowance for Doubtful Accounts Receivable Additions Charged to Expenses | (99,000) | $ 1,641,000 | 3,425,000 | $ 6,411,000 | |||||
Accounts Receivable, Allowance for Credit Loss, Writeoff | (2,244,000) | (4,173,000) | (4,994,000) | (9,508,000) | |||||
Allowance for Doubtful Accounts Receivable Foreign Currency Adjustment | $ 50,000 | $ (27,000) | $ (31,000) | $ 45,000 | |||||
Accounts receivable | |||||||||
Aging of accounts and notes receivable | |||||||||
Past due | 31,302,000 | ||||||||
Interest receivable, net | 17,486,000 | ||||||||
Financing Receivable Allowance for Uncollected Interest | 0 | ||||||||
Accounts and Notes Receivable Gross | $ 48,788,000 | ||||||||
Past due period | 30 days | ||||||||
Notes receivable | |||||||||
Aging of accounts and notes receivable | |||||||||
Past due | $ 9,454,000 | ||||||||
Interest receivable, net | 21,212,000 | ||||||||
Financing Receivable Allowance for Uncollected Interest | 2,289,000 | ||||||||
Accounts and Notes Receivable Gross | $ 32,955,000 | ||||||||
Past due period | 90 days | ||||||||
Financing Receivable, Nonaccrual | $ 9,500,000 | $ 8.5 |
Revenue Revenue (Details)
Revenue Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 26, 2020 | Sep. 30, 2019 | Sep. 26, 2020 | Sep. 30, 2019 | Dec. 28, 2019 | |
Revenues | $ 550,992 | $ 18,920 | $ 1,656,185 | $ 138,578 | |
Lease Income | 17,404 | 8,079 | 51,000 | 8,079 | |
Financing Receivable, before Allowance for Credit Loss | 30,667 | 30,667 | $ 57,495 | ||
Deferred Revenue | 34,236 | 34,236 | $ 10,519 | ||
Vitamin Shoppe [Member] | |||||
Revenues | 266,965 | 0 | 780,588 | 0 | |
Lease Income | 0 | 0 | 0 | 0 | |
American Freight [Member] | |||||
Revenues | 245,212 | 0 | 682,386 | 0 | |
Lease Income | 0 | 0 | 0 | 0 | |
Liberty Tax [Member] | |||||
Revenues | 13,300 | 5,414 | 117,992 | 125,072 | |
Lease Income | 0 | 0 | 0 | 0 | |
Buddy's [Member] | |||||
Revenues | 25,515 | 13,506 | 75,219 | 13,506 | |
Lease Income | 17,404 | 8,079 | 51,000 | 8,079 | |
Product [Member] | |||||
Revenues | 500,462 | 557 | 1,440,677 | 557 | |
Product [Member] | Vitamin Shoppe [Member] | |||||
Revenues | 266,965 | 0 | 780,588 | 0 | |
Product [Member] | American Freight [Member] | |||||
Revenues | 231,959 | 0 | 655,311 | 0 | |
Product [Member] | Liberty Tax [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Product [Member] | Buddy's [Member] | |||||
Revenues | 1,538 | 557 | 4,778 | 557 | |
Franchise [Member] | Vitamin Shoppe [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Franchise [Member] | American Freight [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Franchise [Member] | Liberty Tax [Member] | |||||
Revenues | 188 | 450 | 915 | 1,943 | |
Franchise [Member] | Buddy's [Member] | |||||
Revenues | 8 | 0 | 20 | 0 | |
Area Developer [Member] | Vitamin Shoppe [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Area Developer [Member] | American Freight [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Area Developer [Member] | Liberty Tax [Member] | |||||
Revenues | 1,607 | 920 | 3,076 | 2,618 | |
Area Developer [Member] | Buddy's [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Royalties and Advertising [Member] | Vitamin Shoppe [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Royalties and Advertising [Member] | American Freight [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Royalties and Advertising [Member] | Liberty Tax [Member] | |||||
Revenues | 7,346 | 933 | 55,410 | 61,831 | |
Royalties and Advertising [Member] | Buddy's [Member] | |||||
Revenues | 2,517 | 2,453 | 7,346 | 2,453 | |
Financial Service [Member] | Vitamin Shoppe [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Financial Service [Member] | American Freight [Member] | |||||
Revenues | 6,775 | 0 | 8,066 | 0 | |
Financial Service [Member] | Liberty Tax [Member] | |||||
Revenues | 1,328 | 297 | 31,200 | 33,172 | |
Financial Service [Member] | Buddy's [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Interest Income [Member] | Vitamin Shoppe [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Interest Income [Member] | American Freight [Member] | |||||
Revenues | 315 | 0 | 987 | 0 | |
Interest Income [Member] | Liberty Tax [Member] | |||||
Revenues | 356 | 1,137 | 3,254 | 5,966 | |
Interest Income [Member] | Buddy's [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Assisted Tax Preparation [Member] | Vitamin Shoppe [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Assisted Tax Preparation [Member] | American Freight [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Assisted Tax Preparation [Member] | Liberty Tax [Member] | |||||
Revenues | 559 | 237 | 15,477 | 12,227 | |
Assisted Tax Preparation [Member] | Buddy's [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Electronic Filing [Member] | Vitamin Shoppe [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Electronic Filing [Member] | American Freight [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Electronic Filing [Member] | Liberty Tax [Member] | |||||
Revenues | 219 | 32 | 2,619 | 2,977 | |
Electronic Filing [Member] | Buddy's [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Membership [Member] | Vitamin Shoppe [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Membership [Member] | American Freight [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Membership [Member] | Liberty Tax [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Membership [Member] | Buddy's [Member] | |||||
Revenues | 3,436 | 1,693 | 10,124 | 1,693 | |
Warranty [Member] | Vitamin Shoppe [Member] | |||||
Revenues | 0 | 0 | |||
Warranty [Member] | American Freight [Member] | |||||
Revenues | 4,775 | 13,754 | |||
Warranty [Member] | Liberty Tax [Member] | |||||
Revenues | 0 | 0 | |||
Warranty [Member] | Buddy's [Member] | |||||
Revenues | 0 | 0 | |||
Service, Other [Member] | Vitamin Shoppe [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Service, Other [Member] | American Freight [Member] | |||||
Revenues | 1,388 | 0 | 4,268 | 0 | |
Service, Other [Member] | Liberty Tax [Member] | |||||
Revenues | 1,697 | 1,408 | 6,041 | 4,338 | |
Service, Other [Member] | Buddy's [Member] | |||||
Revenues | 612 | 724 | 1,951 | 724 | |
Service [Member] | |||||
Revenues | 33,126 | 10,284 | 164,508 | 129,942 | |
Service [Member] | Vitamin Shoppe [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Service [Member] | American Freight [Member] | |||||
Revenues | 13,253 | 0 | 27,075 | 0 | |
Service [Member] | Liberty Tax [Member] | |||||
Revenues | 13,300 | 5,414 | 117,992 | 125,072 | |
Service [Member] | Buddy's [Member] | |||||
Revenues | 6,573 | 4,870 | 19,441 | 4,870 | |
Retail [Member] | Vitamin Shoppe [Member] | |||||
Revenues | 266,965 | 0 | 780,588 | 0 | |
Retail [Member] | American Freight [Member] | |||||
Revenues | 231,959 | 0 | 655,311 | 0 | |
Retail [Member] | Liberty Tax [Member] | |||||
Revenues | 0 | 0 | |||
Retail [Member] | Buddy's [Member] | |||||
Revenues | $ 1,538 | $ 557 | $ 4,778 | $ 557 |
Revenue Revenue (Details 1)
Revenue Revenue (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Dec. 28, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||||
Deferred AD Fees and Franchise Fees at beginning of period | $ 34,236 | $ 34,236 | $ 35,982 | $ 10,519 |
Recognition of Deferred Revenue | (23,541) | (39,744) | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deferred Revenue | 0 | 14,056 | ||
New Deferrals of Franchise and AD Fees | $ 21,795 | $ 49,405 |
Revenue Revenue (Details 2)
Revenue Revenue (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 30, 2019 | Sep. 26, 2020 | Sep. 30, 2019 | |
Revenues | $ 550,992 | $ 18,920 | $ 1,656,185 | $ 138,578 |
Lease Income | 17,404 | 8,079 | 51,000 | 8,079 |
Product [Member] | ||||
Revenues | 500,462 | 557 | 1,440,677 | 557 |
Service [Member] | ||||
Revenues | 33,126 | 10,284 | 164,508 | 129,942 |
Vitamin Shoppe [Member] | ||||
Revenues | 266,965 | 0 | 780,588 | 0 |
Lease Income | 0 | 0 | 0 | 0 |
Vitamin Shoppe [Member] | Product [Member] | ||||
Revenues | 266,965 | 0 | 780,588 | 0 |
Vitamin Shoppe [Member] | Franchise [Member] | ||||
Revenues | 0 | 0 | 0 | 0 |
Vitamin Shoppe [Member] | Area Developer [Member] | ||||
Revenues | 0 | 0 | 0 | 0 |
Vitamin Shoppe [Member] | Royalties and Advertising [Member] | ||||
Revenues | 0 | 0 | 0 | 0 |
Vitamin Shoppe [Member] | Financial Service [Member] | ||||
Revenues | 0 | 0 | 0 | 0 |
Vitamin Shoppe [Member] | Interest Income [Member] | ||||
Revenues | 0 | 0 | 0 | 0 |
Vitamin Shoppe [Member] | Assisted Tax Preparation [Member] | ||||
Revenues | 0 | 0 | 0 | 0 |
Vitamin Shoppe [Member] | Electronic Filing [Member] | ||||
Revenues | 0 | 0 | 0 | 0 |
Vitamin Shoppe [Member] | Membership [Member] | ||||
Revenues | 0 | 0 | 0 | 0 |
Vitamin Shoppe [Member] | Service, Other [Member] | ||||
Revenues | 0 | 0 | 0 | 0 |
Vitamin Shoppe [Member] | Service [Member] | ||||
Revenues | 0 | 0 | 0 | 0 |
Vitamin Shoppe [Member] | Retail [Member] | ||||
Revenues | 266,965 | 0 | 780,588 | 0 |
American Freight [Member] | ||||
Revenues | 245,212 | 0 | 682,386 | 0 |
Lease Income | 0 | 0 | 0 | 0 |
American Freight [Member] | Product [Member] | ||||
Revenues | 231,959 | 0 | 655,311 | 0 |
American Freight [Member] | Franchise [Member] | ||||
Revenues | 0 | 0 | 0 | 0 |
American Freight [Member] | Area Developer [Member] | ||||
Revenues | 0 | 0 | 0 | 0 |
American Freight [Member] | Royalties and Advertising [Member] | ||||
Revenues | 0 | 0 | 0 | 0 |
American Freight [Member] | Financial Service [Member] | ||||
Revenues | 6,775 | 0 | 8,066 | 0 |
American Freight [Member] | Interest Income [Member] | ||||
Revenues | 315 | 0 | 987 | 0 |
American Freight [Member] | Assisted Tax Preparation [Member] | ||||
Revenues | 0 | 0 | 0 | 0 |
American Freight [Member] | Electronic Filing [Member] | ||||
Revenues | 0 | 0 | 0 | 0 |
American Freight [Member] | Membership [Member] | ||||
Revenues | 0 | 0 | 0 | 0 |
American Freight [Member] | Service, Other [Member] | ||||
Revenues | 1,388 | 0 | 4,268 | 0 |
American Freight [Member] | Service [Member] | ||||
Revenues | 13,253 | 0 | 27,075 | 0 |
American Freight [Member] | Retail [Member] | ||||
Revenues | 231,959 | 0 | 655,311 | 0 |
Liberty Tax [Member] | ||||
Revenues | 13,300 | 5,414 | 117,992 | 125,072 |
Lease Income | 0 | 0 | 0 | 0 |
Liberty Tax [Member] | Product [Member] | ||||
Revenues | 0 | 0 | 0 | 0 |
Liberty Tax [Member] | Franchise [Member] | ||||
Revenues | 188 | 450 | 915 | 1,943 |
Liberty Tax [Member] | Area Developer [Member] | ||||
Revenues | 1,607 | 920 | 3,076 | 2,618 |
Liberty Tax [Member] | Royalties and Advertising [Member] | ||||
Revenues | 7,346 | 933 | 55,410 | 61,831 |
Liberty Tax [Member] | Financial Service [Member] | ||||
Revenues | 1,328 | 297 | 31,200 | 33,172 |
Liberty Tax [Member] | Interest Income [Member] | ||||
Revenues | 356 | 1,137 | 3,254 | 5,966 |
Liberty Tax [Member] | Assisted Tax Preparation [Member] | ||||
Revenues | 559 | 237 | 15,477 | 12,227 |
Liberty Tax [Member] | Electronic Filing [Member] | ||||
Revenues | 219 | 32 | 2,619 | 2,977 |
Liberty Tax [Member] | Membership [Member] | ||||
Revenues | 0 | 0 | 0 | 0 |
Liberty Tax [Member] | Service, Other [Member] | ||||
Revenues | 1,697 | 1,408 | 6,041 | 4,338 |
Liberty Tax [Member] | Service [Member] | ||||
Revenues | 13,300 | 5,414 | 117,992 | 125,072 |
Liberty Tax [Member] | Retail [Member] | ||||
Revenues | 0 | 0 | ||
Buddy's [Member] | ||||
Revenues | 25,515 | 13,506 | 75,219 | 13,506 |
Lease Income | 17,404 | 8,079 | 51,000 | 8,079 |
Buddy's [Member] | Product [Member] | ||||
Revenues | 1,538 | 557 | 4,778 | 557 |
Buddy's [Member] | Franchise [Member] | ||||
Revenues | 8 | 0 | 20 | 0 |
Buddy's [Member] | Area Developer [Member] | ||||
Revenues | 0 | 0 | 0 | 0 |
Buddy's [Member] | Royalties and Advertising [Member] | ||||
Revenues | 2,517 | 2,453 | 7,346 | 2,453 |
Buddy's [Member] | Financial Service [Member] | ||||
Revenues | 0 | 0 | 0 | 0 |
Buddy's [Member] | Interest Income [Member] | ||||
Revenues | 0 | 0 | 0 | 0 |
Buddy's [Member] | Assisted Tax Preparation [Member] | ||||
Revenues | 0 | 0 | 0 | 0 |
Buddy's [Member] | Electronic Filing [Member] | ||||
Revenues | 0 | 0 | 0 | 0 |
Buddy's [Member] | Membership [Member] | ||||
Revenues | 3,436 | 1,693 | 10,124 | 1,693 |
Buddy's [Member] | Service, Other [Member] | ||||
Revenues | 612 | 724 | 1,951 | 724 |
Buddy's [Member] | Service [Member] | ||||
Revenues | 6,573 | 4,870 | 19,441 | 4,870 |
Buddy's [Member] | Retail [Member] | ||||
Revenues | $ 1,538 | $ 557 | $ 4,778 | $ 557 |
Revenue Revenue 3 (Details)
Revenue Revenue 3 (Details) $ in Thousands | Sep. 26, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-12-26 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 30,173 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-12-25 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 1,403 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-12-24 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 1,195 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-12-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 768 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-12-28 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 138 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-12-27 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 559 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 34,236 |
Changes in the Carrying Amount
Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 8 Months Ended | 9 Months Ended |
Dec. 28, 2019 | Sep. 26, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill Impairments, Gross | $ 134,301 | $ 469,788 |
Goodwill, Purchase Accounting Adjustments | (37) | |
Impairment of Intangible Assets (Excluding Goodwill) | (792) | |
ERROR in label resolution. | 100,057 | 171,179 |
Goodwill, Balance at Beginning of Period | 6,566 | 134,301 |
Goodwill, Disposals and foreign currency changes, net | (444) | (1,660) |
Disposals and foreign currency changes, net | 134,301 | 469,788 |
Finite-Lived Intangible Assets, Accumulated Amortization | (22,467) | (25,701) |
Intangible Assets, Net (Excluding Goodwill) | 77,590 | 145,478 |
Goodwill, Balance at End of Period | 134,301 | |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
ERROR in label resolution. | 23,534 | 94,300 |
Finite-Lived Intangible Assets, Accumulated Amortization | (72) | (100) |
Intangible Assets, Net (Excluding Goodwill) | 23,462 | 94,200 |
Noncompete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
ERROR in label resolution. | 10,609 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (486) | |
Intangible Assets, Net (Excluding Goodwill) | 10,123 | |
Customer Contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
ERROR in label resolution. | 12,736 | 12,700 |
Finite-Lived Intangible Assets, Accumulated Amortization | (886) | (2,521) |
Intangible Assets, Net (Excluding Goodwill) | 11,850 | 10,179 |
Franchise And Third Party [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill, Acquired in Acquisition | 3,658 | 920 |
Buddy's [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill, Acquired in Acquisition | 75,038 | 0 |
Sears Outlet [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill, Acquired in Acquisition | 31,028 | 0 |
A-Team Leasing [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill, Acquired in Acquisition | 6,287 | 0 |
Buddy's Partners [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill, Acquired in Acquisition | 7,217 | 0 |
Buddy's [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Disposals and foreign currency changes, net | 0 | 335,472 |
Vitamin Shoppe [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill, Acquired in Acquisition | $ 4,951 | $ 0 |
Components of Intangible Assets
Components of Intangible Assets (Details) - USD ($) | 8 Months Ended | 9 Months Ended |
Dec. 28, 2019 | Sep. 26, 2020 | |
Amortizable other intangible assets: | ||
Goodwill, Acquired During Period | $ 134,301,000 | $ 469,788,000 |
Gross carrying amount | 100,057,000 | 171,179,000 |
Accumulated amortization | (22,467,000) | (25,701,000) |
Net carrying amount | 77,590,000 | 145,478,000 |
Trade Names [Member] | ||
Amortizable other intangible assets: | ||
Gross carrying amount | 23,534,000 | 94,300,000 |
Accumulated amortization | (72,000) | (100,000) |
Net carrying amount | 23,462,000 | 94,200,000 |
Franchise Agreements [Member] | ||
Amortizable other intangible assets: | ||
Gross carrying amount | 10,581,000 | |
Accumulated amortization | (1,302,000) | |
Net carrying amount | 9,279,000 | |
Noncompete Agreements [Member] | ||
Amortizable other intangible assets: | ||
Gross carrying amount | 10,609,000 | |
Accumulated amortization | (486,000) | |
Net carrying amount | 10,123,000 | |
Customer lists | ||
Amortizable other intangible assets: | ||
Gross carrying amount | 4,338,000 | 4,120,000 |
Accumulated amortization | (2,559,000) | (2,698,000) |
Net carrying amount | 1,779,000 | 1,422,000 |
Reacquired rights | ||
Amortizable other intangible assets: | ||
Gross carrying amount | 11,577,000 | 10,241,000 |
Accumulated amortization | (2,053,000) | (2,249,000) |
Net carrying amount | 9,524,000 | 7,992,000 |
Area developer rights | ||
Amortizable other intangible assets: | ||
Gross carrying amount | 37,263,000 | 39,237,000 |
Accumulated amortization | (16,411,000) | (16,831,000) |
Net carrying amount | 20,852,000 | 22,406,000 |
Customer Contracts [Member] | ||
Amortizable other intangible assets: | ||
Gross carrying amount | 12,736,000 | 12,700,000 |
Accumulated amortization | (886,000) | (2,521,000) |
Net carrying amount | 11,850,000 | 10,179,000 |
American Freight [Member] | ||
Amortizable other intangible assets: | ||
Goodwill, Acquired During Period | 0 | 335,472,000 |
American Freight [Member] | ||
Amortizable other intangible assets: | ||
Indefinite-lived Intangible Assets Acquired | 70.2 | |
Buddy's [Member] | ||
Amortizable other intangible assets: | ||
Indefinite-lived Intangible Assets Acquired | 12 | 12 |
Buddy's [Member] | ||
Amortizable other intangible assets: | ||
Indefinite-lived Intangible Assets Acquired | $ 11.1 | $ 11.1 |
Debt (Details)
Debt (Details) - USD ($) | Dec. 16, 2019 | Sep. 26, 2020 | Jun. 27, 2020 | Feb. 14, 2020 | Feb. 07, 2020 | Dec. 28, 2019 | Oct. 02, 2019 | May 16, 2019 |
Credit facility | ||||||||
Secured Long-term Debt, Noncurrent | $ 70 | |||||||
Deferred AD Fees and Franchise Fees at beginning of period | $ 34,236,000 | $ 35,982,000 | $ 10,519,000 | |||||
Line of Credit Facility, Current Borrowing Capacity | 135 | |||||||
line of credit, sub-facility | 10 | |||||||
Line of Credit Facility, Swingline, Sub-Facility | 20 | |||||||
Current Installments of Long-Term Obligation | 112,374,000 | 218,384,000 | ||||||
Long-term obligations, excluding current installments, net | $ 516,353,000 | 245,236,000 | ||||||
Debt Instrument, Commitment Fee, Rate | 6.00% | |||||||
Interest, Mortgage Payable | 1.85% | |||||||
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | $ 0.8 | |||||||
Long-term Debt and Lease Obligation, Including Current Maturities | $ 628,727,000 | 463,620,000 | ||||||
Line of Credit Facility, Availability Block | 10 | |||||||
Write off of Deferred Debt Issuance Cost | 4.6 | |||||||
Payment for Debt Extinguishment or Debt Prepayment Cost | 4 | |||||||
Loans [Member] | ||||||||
Credit facility | ||||||||
Long-term Debt, Gross | 575 | |||||||
FGNH First Out Tranche [Member] | ||||||||
Credit facility | ||||||||
Loans Payable to Bank, Noncurrent | $ 375 | |||||||
Interest Rate Margin | 8.00% | |||||||
FGNH First Out Tranche [Member] | ABR Loan Rate [Member] | ||||||||
Credit facility | ||||||||
Interest Rate Margin | 7.00% | |||||||
FGNH Last Out Tranche [Member] [Member] | ||||||||
Credit facility | ||||||||
Loans Payable to Bank, Noncurrent | $ 200 | |||||||
Interest Rate Margin | 12.50% | |||||||
Derivative, Floor Interest Rate | 1.50% | |||||||
FGNH Last Out Tranche [Member] [Member] | ABR Loan Rate [Member] | ||||||||
Credit facility | ||||||||
Interest Rate Margin | 11.50% | |||||||
FGNH Credit Agreement [Member] | ||||||||
Credit facility | ||||||||
Credit Agreement, Installment Payments | $ 6.25 | |||||||
Consolidated Excess Cash Flow, Percentage | 50.00% | |||||||
Line of Credit Facility, Current Borrowing Capacity | $ 100 | |||||||
Debt Instrument, Debt Default, Additional Interest May Be Required to Pay if Events of Default Occur, Percent | 2.00% | |||||||
Buddy's [Member] | ||||||||
Credit facility | ||||||||
Repayments of Debt | $ 101.6 | |||||||
Sears Outlet [Member] | ||||||||
Credit facility | ||||||||
Repayments of Debt | $ 106.7 | |||||||
FGNH ABL Term Loan [Member] | ||||||||
Credit facility | ||||||||
Total debt | $ 100 | |||||||
one-month London Inter-Bank Offered Rate (LIBOR) | ||||||||
Credit facility | ||||||||
Derivative, Floor Interest Rate | 1.00% | |||||||
Commitments to Extend Credit [Member] | ||||||||
Credit facility | ||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 100 | |||||||
Loan Participations and Assignments [Member] | ||||||||
Credit facility | ||||||||
Total debt | $ 5.3 | |||||||
Senior Notes Repurchase, Amount [Member] | ||||||||
Credit facility | ||||||||
Total debt | $ 60.4 | |||||||
ABR Loan Base Rate Floor [Member] | ||||||||
Credit facility | ||||||||
Loans Receivable, Basis Spread on Variable Rate | 2.50% | |||||||
Revolver | ||||||||
Credit facility | ||||||||
Total debt | $ 85,665,000 | 129,260,000 | ||||||
Term loan | ||||||||
Credit facility | ||||||||
Total debt | 537,970,000 | 268,660,000 | ||||||
SEC Schedule, 12-09, Allowance, Franchise Notes Receivable [Member] | ||||||||
Credit facility | ||||||||
Total debt | 2,036,000 | 1,661,000 | ||||||
Other debt | ||||||||
Credit facility | ||||||||
Total debt | 1,725,000 | 1,825,000 | ||||||
Senior Notes [Member] | ||||||||
Credit facility | ||||||||
Total debt | 60,000 | $ 60.6 | 60,439,000 | |||||
Finance Lease Liability [Member] | ||||||||
Credit facility | ||||||||
Total debt | $ 1,271,000 | $ 1,775,000 | ||||||
New ABL Revolver [Member] | ||||||||
Credit facility | ||||||||
Debt Instrument, Interest Rate, Effective Percentage | 2.00% | |||||||
Debt Instrument, Debt Default, Amount | $ 12.5 | |||||||
Excess Capital to Risk Weighted Assets | 12.50% | |||||||
Line of Credit Facility, Swingline, Sub-Facility | $ 15 | |||||||
Letters of Credit Outstanding, Amount | 15 | |||||||
Line of Credit Facility, Fair Value of Amount Outstanding | 32.7 | |||||||
Maximum borrowing capacity | $ 125 | |||||||
Interest Rate Floor [Member] | ||||||||
Credit facility | ||||||||
Interest Rate Margin | 3.50% | |||||||
Interest Rate Floor [Member] | Applicable Interest Rate Margin, ABR Loans, low [Member] | ||||||||
Credit facility | ||||||||
Interest Rate Margin | 2.50% | |||||||
Interest Rate Cap [Member] | ||||||||
Credit facility | ||||||||
Interest Rate Margin | 3.75% | |||||||
Interest Rate Cap [Member] | Applicable Interest Rate Margin, ABR Loans, high [Member] | ||||||||
Credit facility | ||||||||
Interest Rate Margin | 2.75% | |||||||
Credit facility | Vitamin Shoppe Credit Facility [Member] | ||||||||
Credit facility | ||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 100 | $ 575 | ||||||
Debt Instrument, Debt Default, Additional Interest May Be Required to Pay if Events of Default Occur, Percent | 2.00% | |||||||
Credit facility | Vitamin Shoppe Credit Facility [Member] | one-month London Inter-Bank Offered Rate (LIBOR) | ||||||||
Credit facility | ||||||||
Interest rate margin (as a percent) | 1.25% | |||||||
Debt Instrument, Basis Spread on Variable Rate, Floor | 0.00% | |||||||
Credit facility | Vitamin Shoppe Credit Facility [Member] | London Interback Offered Rate (LIBOR) High Range [Member] | ||||||||
Credit facility | ||||||||
Interest rate margin (as a percent) | 1.75% | |||||||
Credit facility | Vitamin Shoppe Credit Facility [Member] | Alternate Base Rate [Member] | ||||||||
Credit facility | ||||||||
Interest rate margin (as a percent) | 0.25% | |||||||
Debt Instrument, Basis Spread on Variable Rate, Floor | 1.00% | |||||||
Credit facility | Vitamin Shoppe Credit Facility [Member] | Alternate Base Rate High [Member] | ||||||||
Credit facility | ||||||||
Interest rate margin (as a percent) | 0.75% | |||||||
Credit facility | Liberty Tax [Member] | ||||||||
Credit facility | ||||||||
Maximum borrowing capacity | $ 125 | $ 135 |
Income Taxes Income Taxes (Deta
Income Taxes Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 30, 2019 | Sep. 26, 2020 | Sep. 30, 2019 | |
Income Tax Expense (Benefit) | $ 427,000 | $ (4,339,000) | $ (43,561,000) | $ 10,367,000 |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 52.30% | 357.00% | ||
Current Income Tax Expense (Benefit) | $ 43.6 | |||
Effective Income Tax Rate Reconciliation, Deduction, Percent | (5.20%) | 15.60% | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 48.2 | |||
Tax Receivable Agreement, Payment to Non-controlling Holders | 40.00% | |||
Deferred Tax Liability Not Recognized, Events that Would Cause Temporary Difference to be Taxable, Undistributed Earnings of Domestic Subsidiaries | $ 11,400,000 | |||
CARES Act, Income Tax Benefit [Member] | ||||
Current Income Tax Expense (Benefit) | $ 45.6 | |||
Income Tax Benefit, Recognized [Member] | ||||
Income Tax Expense (Benefit) | $ 10.4 | |||
Investor Shares purchased [Member] | ||||
Stock Repurchased During Period, Shares | 9,433,332 | |||
Tax Receivable Agreement [Member] | ||||
Deferred Tax Liabilities, Deferred Expense | $ 17.2 | $ 17.2 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | Oct. 15, 2020 | Feb. 07, 2020 | Jul. 30, 2020 | Sep. 26, 2020 | Mar. 28, 2020 | Sep. 30, 2019 | Jun. 27, 2020 | Dec. 28, 2019 | Sep. 26, 2020 | Sep. 30, 2019 | Feb. 14, 2020 | Jan. 03, 2020 |
Stockholders' Equity | ||||||||||||
Preferred Stock Dividends, Income Statement Impact | $ 169,000 | $ 0 | $ 169,000 | $ 0 | ||||||||
Adjustment to APIC, Share-based Compensation, Requisite Service Period Recognition | $ 1,945,000 | $ 6,209,000 | ||||||||||
Weighted Average Number of Shares Outstanding, Basic | 39,692,384 | 15,997,041 | 32,679,576 | 14,712,297 | ||||||||
Earnings Per Share, Basic, Distributed | $ 0.89 | $ 1.23 | ||||||||||
Stock Redeemed or Called During Period, Shares | 3,937,726 | |||||||||||
Preferred Stock, redeemed for Common, Shares | 787,545 | |||||||||||
Weighted Average Number of Shares Outstanding, Diluted | 39,692,384 | 15,997,041 | 32,961,905 | 14,770,973 | ||||||||
Earnings Per Share, Diluted, Distributed | $ 0.88 | $ 1.22 | ||||||||||
Proceeds from Stock Options Exercised | $ 520,000 | $ 1,214,000 | ||||||||||
Unrealized Gain (Loss) on Derivatives | $ (42,000) | (161,000) | ||||||||||
Foreign Currency Contracts, Liability, Fair Value Disclosure | $ 7,000 | 0 | 7,000 | |||||||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (1,684,000) | (1,496,000) | (1,684,000) | |||||||||
Stock-based compensation expense - equity awards | 6,294,000 | 1,339,000 | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (1,838,000) | (1,538,000) | $ (1,838,000) | |||||||||
Antidilutive securities | ||||||||||||
Adjustments to Additional Paid in Capital, Other | $ 10 | |||||||||||
Debt Instrument, Term | 35 years | 30 years | 30 years | |||||||||
Proceeds from Issuance of Common Stock | $ 198,003,000 | 25,000,000 | ||||||||||
Consulting, Underwriting Service Fee | 0.9 | $ 5.4 | 0.9 | |||||||||
Preferred Stock, Value, Issued | $ 0.01 | $ 0.01 | ||||||||||
Preferred Stock, Liquidation Preference Per Share | $ 25 | $ 25 | ||||||||||
Excess Stock, Shares Authorized | 180,000 | 180,000 | ||||||||||
Preferred Stock, Value, Outstanding | $ 1,200,000,000 | 1,886,667,000 | $ 1,200,000,000 | |||||||||
Proceeds from Issuance of Preferred Stock and Preference Stock | 28,366,000 | 0 | ||||||||||
Preferred Units, Offering Costs | 1.2 | 1.2 | ||||||||||
Class A common stock | ||||||||||||
Stockholders' Equity | ||||||||||||
Net Income (Loss) Available to Common Stockholders, Basic | (8,766,000) | $ (14,886,000) | 29,100,000 | 18,049,000 | ||||||||
Undistributed Earnings, Basic | (8,597,000) | $ (14,886,000) | 29,269,000 | $ 18,049,000 | ||||||||
Adjustment to APIC, Share-based Compensation, Requisite Service Period Recognition | 13,000 | $ 31,000 | ||||||||||
Weighted Average Number of Shares Outstanding, Basic | 32,679,576 | 14,712,297 | ||||||||||
Weighted Average Number of Shares Outstanding, Diluted | 14,770,973 | 32,961,905 | ||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 282,329 | 58,676 | ||||||||||
Common Stock, Value, Issued | $ 401,000 | $ 183,000 | $ 401,000 | |||||||||
net income (loss) available to common shareholders, basic and diluted | $ (23,464,000) | |||||||||||
Earnings Per Share, Basic and Diluted | $ (0.22) | $ (0.93) | ||||||||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 39,692,384 | 15,997,041 | ||||||||||
Antidilutive securities | ||||||||||||
Net Income (Loss) Available to Common Stockholders, Diluted | $ 29,100,000 | $ 18,049,000 | ||||||||||
Vitamin Shoppe [Member] | ||||||||||||
Stockholders' Equity | ||||||||||||
Common Stock, Shares Subscribed but Unissued | 2,354,000 | |||||||||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | |||||||||||
Antidilutive securities | ||||||||||||
Share Price | $ 12 | |||||||||||
Common Stock, Value, Subscriptions | $ 28.2 | |||||||||||
Investor Shares purchased [Member] | ||||||||||||
Stockholders' Equity | ||||||||||||
Common Stock, Shares Subscribed but Unissued | 3,877,965 | |||||||||||
Equity Unit Purchase Agreements [Member] | ||||||||||||
Antidilutive securities | ||||||||||||
Common Stock, Value, Subscriptions | $ 65.9 | |||||||||||
Fair Value Measured at Net Asset Value Per Share [Member] | ||||||||||||
Antidilutive securities | ||||||||||||
Business Acquisition, Share Price | $ 12 | |||||||||||
Private Placement [Member] | ||||||||||||
Antidilutive securities | ||||||||||||
Business Acquisition, Share Price | $ 23 | |||||||||||
Senior Notes [Member] | ||||||||||||
Antidilutive securities | ||||||||||||
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 2.25% | |||||||||||
Kayne FRG Holding L.P. [Member] | ||||||||||||
Stockholders' Equity | ||||||||||||
Common Stock, Value, Issued | $ 31 | |||||||||||
Antidilutive securities | ||||||||||||
Common Stock, Shares, Issued | 1,250,000 | |||||||||||
Remaining New Holdco Units [Member] | ||||||||||||
Stockholders' Equity | ||||||||||||
Preferred Stock, redeemed for Common, Shares | 5,495,606 | |||||||||||
Preferred Stock, additional shares [Member] | ||||||||||||
Stockholders' Equity | ||||||||||||
Preferred Stock, redeemed for Common, Shares | 1,099,121 | |||||||||||
Sears Outlet [Member] | ||||||||||||
Antidilutive securities | ||||||||||||
Common Stock, Value, Subscriptions | $ 70 | |||||||||||
Common Stock [Member] | ||||||||||||
Antidilutive securities | ||||||||||||
Sale of Stock, Number of Shares Issued in Transaction | 4,200,000 | |||||||||||
Shares Issued, Price Per Share | $ 23.25 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 630,000 | |||||||||||
Proceeds from Issuance of Common Stock | $ 92.2 | |||||||||||
Payments of Stock Issuance Costs | 0.8 | |||||||||||
Additional Proceeds, Common Stock, Value [Member] | ||||||||||||
Antidilutive securities | ||||||||||||
Proceeds from Issuance of Common Stock | $ 13.8 | |||||||||||
Preferred Stock [Member] | ||||||||||||
Stockholders' Equity | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 1,886,667,000 | 0 | ||||||||||
Preferred Stock, Shares Issued | 1,200,000,000 | 0 | 1,200,000,000 | |||||||||
Antidilutive securities | ||||||||||||
Sale of Stock, Price Per Share | $ 25 | $ 25 | ||||||||||
Excess Stock, Shares Authorized | 50,000 | |||||||||||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 1.2 | $ 28.8 | ||||||||||
Preferred Units, Offering Costs | $ 0.1 |
Stock Compensation Plans (Detai
Stock Compensation Plans (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 26, 2020 | Sep. 26, 2020 | Dec. 28, 2019 | |
Stock compensation plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 4,800,000 | |||
Nonvested stock option activity, Weighted average exercise price | ||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ 3.7 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Restricted Stock Minimum | 0.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Restricted Stock Maximum | 150.00% | |||
Restricted Stock or Unit Expense | $ 0.6 | |||
Share-based Payment Arrangement, Option [Member] | ||||
Stock compensation plan | ||||
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Exercise Price | $ 10.46 | |||
Exercise period | 3 years | |||
Unrecognized compensation costs | $ 100,000 | |||
Stock option activity, Number of options | ||||
Outstanding at the beginning of the period (in shares) | 391,409 | 391,409 | 391,409 | 460,285 |
Exercised (in shares) | (50,278) | |||
Canceled (in shares) | (18,598) | |||
Outstanding at the end of the period (in shares) | 391,409 | 391,409 | ||
Stock option activity, Weighted average exercise price | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 10.19 | $ 10.19 | $ 10.19 | $ 10.28 |
Exercised (in dollars per share) | 10.35 | |||
Canceled (in dollars per share) | 11.93 | |||
Outstanding at the end of the period (in dollars per share) | $ 10.19 | $ 10.19 | ||
Nonvested stock option activity, Weighted average exercise price | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | P3Y | |||
Share-based Payment Arrangement, Option [Member] | Minimum | ||||
Stock compensation plan | ||||
Exercise period | 4 years | |||
Nonvested stock option activity, Weighted average exercise price | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | P4Y | |||
Share-based Payment Arrangement, Option [Member] | Maximum [Member] | ||||
Stock compensation plan | ||||
Exercise period | 5 years | |||
Nonvested stock option activity, Weighted average exercise price | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | P5Y | |||
Nonvested Stock Option [Member] | ||||
Nonvested stock option activity, Nonvested options | ||||
Outstanding at the beginning of the period (in shares) | 63,334 | 63,334 | 63,334 | 215,007 |
Vested (in shares) | (133,075) | |||
Canceled (in shares) | (18,598) | |||
Outstanding at the end of the period (in shares) | 63,334 | 63,334 | ||
Nonvested stock option activity, Weighted average exercise price | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 8.83 | $ 8.83 | $ 8.83 | $ 10.11 |
Vested (in dollars per share) | 10.46 | |||
Canceled (in dollars per share) | 11.93 | |||
Outstanding at the end of the period (in dollars per share) | $ 8.83 | $ 8.83 | ||
Restricted Stock Units | ||||
Stock compensation plan | ||||
Unrecognized compensation costs | $ 15.1 | |||
Equity Plan 2019 [Member] [Domain] | ||||
Stock compensation plan | ||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | |||
Common Class A [Member] | ||||
Stock option activity, Number of options | ||||
Exercised (in shares) | (28,000) | (50,000) | ||
Exercise Price, Range Two [Member] | Share-based Payment Arrangement, Option [Member] | ||||
Stock compensation plan | ||||
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Remaining Contractual Term | 3 years 6 months | |||
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Exercise Price | $ 11.98 | |||
Stock option activity, Number of options | ||||
Outstanding at the beginning of the period (in shares) | 173,909 | 173,909 | 173,909 | |
Outstanding at the end of the period (in shares) | 173,909 | 173,909 | ||
Restricted Stock Unit expense [Member] | ||||
Nonvested stock option activity, Weighted average exercise price | ||||
Restricted Stock or Unit Expense | $ 0.6 | |||
Restricted Stock Units, Directors of company [Member] | ||||
Nonvested stock option activity, Weighted average exercise price | ||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | 0.7 | |||
Restricted Stock Unit Expense, Directors of company [Member] | ||||
Nonvested stock option activity, Weighted average exercise price | ||||
Restricted Stock or Unit Expense | 0.4 | |||
Restricted Stock Units | ||||
Nonvested stock option activity, Weighted average exercise price | ||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | 3.7 | |||
stock awards expense [Member] | ||||
Stock compensation plan | ||||
Share-based Payment Arrangement, Expense | $ 6.3 |
Stock Compensation Plans (Det_2
Stock Compensation Plans (Details 2) - USD ($) | 9 Months Ended | |
Sep. 26, 2020 | Dec. 28, 2019 | |
Share-based Payment Arrangement, Option [Member] | ||
Stock options outstanding and exercisable | ||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | P3Y | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 3 years | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 100,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 391,409 | 460,285 |
Weighted average exercise price (in dollars per share) | $ 10.19 | |
Number of shares exercisable at the end of the period | 328,075 | |
Weighted average exercise price (in dollars per share) | $ 10.46 | |
Share-based Payment Arrangement, Option [Member] | Exercise Price, Range One [Member] | ||
Stock options outstanding and exercisable | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 217,500 | |
Weighted average exercise price (in dollars per share) | $ 8.77 | |
Weighted average remaining contractual life | 4 years 6 months | |
Number of shares exercisable at the end of the period | 154,166 | |
Weighted average exercise price (in dollars per share) | $ 8.74 | |
Share-based Payment Arrangement, Option [Member] | Exercise Price, Range two | ||
Stock options outstanding and exercisable | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 173,909 | |
Weighted average exercise price (in dollars per share) | $ 11.98 | |
Weighted average remaining contractual life | 3 years 6 months | |
Number of shares exercisable at the end of the period | 173,909 | |
Weighted average exercise price (in dollars per share) | $ 11.98 | |
Restricted Stock Units | ||
Stock options outstanding and exercisable | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 15.1 | |
Minimum | Share-based Payment Arrangement, Option [Member] | ||
Stock options outstanding and exercisable | ||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | P4Y | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 4 years | |
Maximum [Member] | Share-based Payment Arrangement, Option [Member] | ||
Stock options outstanding and exercisable | ||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | P5Y | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years |
Restricted Stock Units (Details
Restricted Stock Units (Details 3) - Restricted Stock Units - $ / shares | 9 Months Ended | |
Sep. 26, 2020 | Dec. 28, 2019 | |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 337,713 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 957,353 | 671,039 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted, Weighted Average Grant Date Fair Value | $ 24.72 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 34,701 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 10.75 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations | 16,698 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations, Weighted Average Grant Date Fair Value | $ 19.49 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Weighted Average Grant Date Fair Value | $ 17.80 | $ 13.99 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 26, 2020 | Mar. 28, 2020 | Dec. 28, 2019 |
Assets: | |||
Assets Fair Value Disclosure Recurring and Nonrecurring | $ 11,563 | ||
Foreign Currency Contracts, Liability, Fair Value Disclosure | $ 7 | 0 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 974 | ||
Level 1 | |||
Assets: | |||
Assets Fair Value Disclosure Recurring and Nonrecurring | 4,253 | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 | |
Level 2 | |||
Assets: | |||
Assets Fair Value Disclosure Recurring and Nonrecurring | 0 | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 161 | 58 | |
Level 3 | |||
Assets: | |||
Assets Fair Value Disclosure Recurring and Nonrecurring | 7,310 | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 535 | 916 | |
Nonrecurring | |||
Assets: | |||
Impaired accounts and notes receivable, net of unrecognized revenue | 11,217 | 7,310 | |
Impaired goodwill | 11,248 | ||
Total recurring liabilities | 7,310 | ||
Nonrecurring | Level 1 | |||
Assets: | |||
Impaired accounts and notes receivable, net of unrecognized revenue | 0 | 0 | |
Impaired goodwill | 31 | ||
Total recurring liabilities | 0 | ||
Nonrecurring | Level 2 | |||
Assets: | |||
Impaired accounts and notes receivable, net of unrecognized revenue | 0 | 0 | |
Impaired goodwill | 0 | ||
Total recurring liabilities | 0 | ||
Nonrecurring | Level 3 | |||
Assets: | |||
Impaired accounts and notes receivable, net of unrecognized revenue | 11,217 | 7,310 | |
Impaired goodwill | 11,217 | ||
Total recurring liabilities | 7,310 | ||
Recurring | |||
Fair value of financial instruments | |||
Foreign Currency Contract, Asset, Fair Value Disclosure | 31 | ||
Assets: | |||
Cash equivalents, money market account | 31 | 4,253 | |
Total recurring liabilities | 4,253 | ||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 180 | ||
Business Combination, Contingent Consideration, Liability | 916 | ||
Accounts and Notes Receivable, Allowance for Uncollected Interest Amounts Due ADs Related Deferred Revenue and Amounts Due Franchisees | 355 | ||
Interest Rate Derivative Liabilities, at Fair Value | 161 | 58 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 696 | ||
Recurring | Level 1 | |||
Fair value of financial instruments | |||
Foreign Currency Contract, Asset, Fair Value Disclosure | 31 | ||
Assets: | |||
Cash equivalents, money market account | 31 | $ 4,253 | |
Total recurring liabilities | 4,253 | ||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | ||
Business Combination, Contingent Consideration, Liability | 0 | ||
Accounts and Notes Receivable, Allowance for Uncollected Interest Amounts Due ADs Related Deferred Revenue and Amounts Due Franchisees | 0 | ||
Interest Rate Derivative Liabilities, at Fair Value | 0 | 0 | |
Recurring | Level 2 | |||
Fair value of financial instruments | |||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | ||
Assets: | |||
Cash equivalents, money market account | 0 | 0 | |
Total recurring liabilities | 0 | ||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | ||
Business Combination, Contingent Consideration, Liability | 0 | ||
Accounts and Notes Receivable, Allowance for Uncollected Interest Amounts Due ADs Related Deferred Revenue and Amounts Due Franchisees | 0 | ||
Interest Rate Derivative Liabilities, at Fair Value | 161 | 58 | |
Recurring | Level 3 | |||
Fair value of financial instruments | |||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | ||
Assets: | |||
Cash equivalents, money market account | 0 | $ 0 | |
Total recurring liabilities | 0 | ||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 180 | ||
Business Combination, Contingent Consideration, Liability | 916 | ||
Accounts and Notes Receivable, Allowance for Uncollected Interest Amounts Due ADs Related Deferred Revenue and Amounts Due Franchisees | 355 | ||
Interest Rate Derivative Liabilities, at Fair Value | $ 0 | $ 0 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 8 Months Ended | 9 Months Ended | |||||
Dec. 28, 2019 | Sep. 26, 2020 | Sep. 30, 2019 | Jun. 27, 2020 | Feb. 07, 2020 | Jan. 06, 2020 | Dec. 16, 2019 | |
Related Party Transaction [Line Items] | |||||||
Related Party Transactions, Percent of Net Revenue Provided by Related Party | 50.00% | ||||||
Contractual Obligation | $ 2.9 | ||||||
Increase (Decrease) in Inventories | $ 26.6 | $ 79,967,000 | $ 579,000 | ||||
Consulting, Advisory Services Fee | $ 5 | ||||||
Tax Receivable Agreement, Percentage of Tax Benefit | 40.00% | ||||||
Tax Receivable Agreement, Payment to Non-controlling Holders | $ 17.2 | ||||||
Line of Credit Facility, Current Borrowing Capacity | 135 | ||||||
Repayment of Notes Receivable from Related Parties | $ 11 | ||||||
Debt Instrument, Commitment Fee, Rate | 6.00% | ||||||
Commitments, Fair Value Disclosure | $ 36 | ||||||
Other Commitment | 100 | ||||||
Consulting, Underwriting Service Fee | 0.9 | $ 5.4 | |||||
Accounts Payable, Underwriters, Promoters, and Employees | $ 0.3 | ||||||
Ownership Percentage [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 32.50% | ||||||
Vintage RTO, L.P. ownership [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
aggregate voting power | 19.00% | ||||||
Payment to Noncontrolling Holders [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Tax Receivable Agreement, Percentage of Tax Benefit | 40.00% | ||||||
American Freight [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Line of Credit Facility, Current Borrowing Capacity | $ 675 | ||||||
Closing Subscription Agreement [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership Interest | 11.00% | ||||||
Underwriting of Preferred Stock [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Consulting, Underwriting Service Fee | $ 5.4 | ||||||
Tender Offer [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Common Stock, Shares Subscribed but Unissued | 669,678 | ||||||
Offer Value [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Common Stock, Value, Subscriptions | $ 11.4 | ||||||
Closing Subscription Agreement [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Common Stock, Shares Subscribed but Unissued | 2,354,000 | ||||||
Common Stock, Value, Subscriptions | $ 28.2 | ||||||
Equity Financing [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Common Stock, Shares Subscribed but Unissued | 123,529 | ||||||
Common Stock, Value, Subscriptions | $ 2.1 | ||||||
Line of Credit [Member] | Vitamin Shoppe Credit Facility [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Line of Credit Facility, Current Borrowing Capacity | 575 | $ 100 | |||||
Administrative Agent [Member] | Line of Credit [Member] | Vitamin Shoppe Credit Facility [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Line of Credit Facility, Current Borrowing Capacity | $ 100 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Sep. 26, 2020USD ($) |
Commitments and contingencies | |
Loss Contingency Accrual | $ 3 |
Additional Accrual for loss contingency [Member] | |
Commitments and contingencies | |
Loss Contingency Accrual | 1 |
Compliance Program loss contingency [Member] | |
Commitments and contingencies | |
Loss Contingency Accrual | $ 0.5 |
Segments (Details)
Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 30, 2019 | Dec. 28, 2019 | Sep. 26, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | |||||
Asset Impairment Charges | $ 1,298,545 | $ 1,912,504 | |||
Goodwill, Acquired During Period | 134,301 | 469,788 | |||
Operating Income (Loss) | $ 19,323 | $ (25,047) | 24,164 | 76,733 | $ 24,164 |
Goodwill | 469,788 | 134,301 | 469,788 | ||
Assets | 1,912,504 | 1,298,545 | 1,912,504 | ||
Depreciation Amortization and Impairment | 17,462 | 4,467 | 51,254 | 12,239 | |
Revenues | 550,992 | 18,920 | 1,656,185 | 138,578 | |
Vitamin Shoppe [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Asset Impairment Charges | 679,646 | 620,578 | |||
Goodwill, Acquired During Period | 4,951 | 0 | |||
Operating Income (Loss) | 2,849 | 0 | 0 | (3,214) | |
Depreciation Amortization and Impairment | 11,474 | 0 | 35,204 | 0 | |
Revenues | 266,965 | 0 | 780,588 | 0 | |
American Freight [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Asset Impairment Charges | 267,176 | 830,902 | |||
Goodwill, Acquired During Period | 31,028 | 370,147 | |||
Operating Income (Loss) | 19,940 | 0 | 0 | 33,949 | |
Depreciation Amortization and Impairment | 1,806 | 0 | 4,272 | 0 | |
Revenues | 245,212 | 0 | 682,386 | 0 | |
Liberty Tax [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Asset Impairment Charges | 123,576 | 99,562 | |||
Goodwill, Acquired During Period | 9,780 | 9,003 | |||
Operating Income (Loss) | (5,357) | (14,708) | 35,558 | 40,121 | |
Depreciation Amortization and Impairment | 2,776 | 3,649 | 7,219 | 11,421 | |
Revenues | 13,300 | 5,414 | 117,992 | 125,072 | |
Buddy's [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Asset Impairment Charges | 188,941 | 185,197 | |||
Goodwill, Acquired During Period | 88,542 | 90,638 | |||
Operating Income (Loss) | 5,302 | 2,232 | 2,232 | 13,985 | |
Depreciation Amortization and Impairment | 1,406 | 818 | 4,559 | 818 | |
Revenues | 25,515 | 13,506 | 75,219 | $ 13,506 | |
Overhead [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Income (Loss) | (3,411) | (12,571) | (13,626) | (8,108) | |
Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Asset Impairment Charges | 1,259,339 | 1,736,239 | |||
Operating Income (Loss) | $ 22,734 | $ (12,476) | 37,790 | 84,841 | |
Corporate, Non-Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Asset Impairment Charges | $ 39,206 | $ 176,265 |
Subsequent Event Subsequent _2
Subsequent Event Subsequent Events (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 9 Months Ended | |||
Jul. 30, 2020 | Jun. 27, 2020 | Sep. 26, 2020 | Sep. 30, 2019 | Oct. 27, 2020 | Dec. 16, 2019 | |
Subsequent Event [Line Items] | ||||||
Senior Notes, Noncurrent | $ 650 | |||||
Secured Long-term Debt, Noncurrent | $ 70 | |||||
Debt Instrument, Term | 35 years | 30 years | 30 years | |||
Proceeds from Issuance of Common Stock | $ 198,003,000 | $ 25,000,000 | ||||
Consulting, Underwriting Service Fee | $ 5.4 | $ 0.9 | ||||
Debt Instrument, Collateral Amount | $ 100 | |||||
Common Stock [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Sale of Stock, Number of Shares Issued in Transaction | 4,200,000 | |||||
Shares Issued, Price Per Share | $ 23.25 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 630,000 | |||||
Proceeds from Issuance of Common Stock | $ 92.2 | |||||
Payments of Stock Issuance Costs | 0.8 | |||||
Additional Proceeds, Common Stock, Value [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Proceeds from Issuance of Common Stock | $ 13.8 |
Uncategorized Items - frg-09262
Label | Element | Value |
preferred stock, issued during period, value | frg_Preferredstockissuedduringperiodvalue | $ 28,366,000 |
Stock Issued During Period, Value, Stock Options Exercised | us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised | 334,000 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | 45,146,000 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | 89,716,000 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | 3,981,000 |
Dividends | us-gaap_Dividends | 10,242,000 |
Dividends, Preferred Stock, Cash | us-gaap_DividendsPreferredStockCash | (169,000) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax and Reclassification Adjustment, Attributable to Parent | us-gaap_OtherComprehensiveIncomeDefinedBenefitPlansAdjustmentNetOfTaxPortionAttributableToParent | 265,000 |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | 89,716,000 |
Additional Paid-in Capital [Member] | ||
preferred stock, issued during period, value | frg_Preferredstockissuedduringperiodvalue | 28,354,000 |
Stock Issued During Period, Value, Stock Options Exercised | us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised | 333,000 |
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | 13,183,000 |
Adjustment to APIC, Share-based Compensation, Requisite Service Period Recognition | frg_AdjustmenttoAPICSharebasedCompensationRequisiteServicePeriodRecognition | 1,945,000 |
Noncontrolling Interest [Member] | ||
Stockholders' Equity Attributable to Noncontrolling Interest | us-gaap_MinorityInterest | 0 |
AOCI Attributable to Parent [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | (1,732,000) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIOnDerivativesTax | 265,000 |
Retained Earnings [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | 85,290,000 |
Dividends | us-gaap_Dividends | 10,242,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 322,000 |
Dividends, Preferred Stock, Cash | us-gaap_DividendsPreferredStockCash | (169,000) |
Net Income (Loss) Attributable to Parent | us-gaap_NetIncomeLoss | (8,597,000) |
Total Equity [Member] | ||
preferred stock, issued during period, value | frg_Preferredstockissuedduringperiodvalue | 28,366,000 |
Stock Issued During Period, Value, Stock Options Exercised | us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised | 334,000 |
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | 96,882,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 322,000 |
Dividends, Preferred Stock, Cash | us-gaap_DividendsPreferredStockCash | (169,000) |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | us-gaap_OtherComprehensiveIncomeLossBeforeTaxPortionAttributableToParent | 265,000 |
Adjustment to APIC, Share-based Compensation, Requisite Service Period Recognition | frg_AdjustmenttoAPICSharebasedCompensationRequisiteServicePeriodRecognition | 1,945,000 |
Net Income (Loss) Attributable to Parent | us-gaap_NetIncomeLoss | (8,597,000) |
Preferred Stock [Member] | ||
preferred stock, issued during period, value | frg_Preferredstockissuedduringperiodvalue | 12,000 |
preferred stock, issued during period, shares | frg_Preferredstockissuedduringperiodshares | 1,200,000 |
Common Class A [Member] | ||
Stock Issued During Period, Value, Stock Options Exercised | us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised | $ 1,000 |
Shares, Outstanding | us-gaap_SharesOutstanding | 14,100,000 |