Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 27, 2020 | Oct. 26, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 27, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | SFM | |
Entity Registrant Name | Sprouts Farmers Market, Inc. | |
Entity Central Index Key | 0001575515 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --01-03 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 117,950,276 | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes | |
Entity File Number | 001-36029 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 32-0331600 | |
Entity Address, Address Line One | 5455 East High Street | |
Entity Address, Address Line Two | Suite 111 | |
Entity Address, City or Town | Phoenix | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85054 | |
City Area Code | 480 | |
Local Phone Number | 814-8016 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 27, 2020 | Dec. 29, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 137,518 | $ 85,314 |
Accounts receivable, net | 24,258 | 15,713 |
Inventories | 257,255 | 275,979 |
Prepaid expenses and other current assets | 18,948 | 10,833 |
Total current assets | 437,979 | 387,839 |
Property and equipment, net of accumulated depreciation | 735,670 | 741,508 |
Operating lease assets, net | 1,040,329 | 1,028,436 |
Intangible assets, net of accumulated amortization | 184,960 | 185,395 |
Goodwill | 368,878 | 368,078 |
Other assets | 14,407 | 11,727 |
Total assets | 2,782,223 | 2,722,983 |
Current liabilities: | ||
Accounts payable | 163,259 | 122,839 |
Accrued liabilities | 138,996 | 136,482 |
Accrued salaries and benefits | 72,155 | 48,579 |
Accrued income tax | 4,089 | 2,005 |
Current portion of operating lease liabilities | 130,088 | 106,153 |
Current portion of finance lease liabilities | 994 | 754 |
Total current liabilities | 509,581 | 416,812 |
Long-term operating lease liabilities | 1,074,267 | 1,078,927 |
Long-term debt and finance lease liabilities | 285,704 | 549,419 |
Other long-term liabilities | 50,140 | 41,517 |
Deferred income tax liability | 54,585 | 54,356 |
Total liabilities | 1,974,277 | 2,141,031 |
Commitments and contingencies (Note 6) | ||
Stockholders’ equity: | ||
Undesignated preferred stock; $0.001 par value; 10,000,000 shares authorized, no shares issued and outstanding | ||
Common stock, $0.001 par value; 200,000,000 shares authorized, 117,950,276 shares issued and outstanding, September 27, 2020; 117,543,668 shares issued and outstanding, December 29, 2019 | 117 | 117 |
Additional paid-in capital | 682,709 | 670,966 |
Accumulated other comprehensive income (loss) | (9,484) | (4,682) |
Retained earnings (Accumulated deficit) | 134,604 | (84,449) |
Total stockholders’ equity | 807,946 | 581,952 |
Total liabilities and stockholders’ equity | $ 2,782,223 | $ 2,722,983 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 27, 2020 | Dec. 29, 2019 |
Statement Of Financial Position [Abstract] | ||
Undesignated preferred stock, par value | $ 0.001 | $ 0.001 |
Undesignated preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Undesignated preferred stock, shares issued | 0 | 0 |
Undesignated preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 117,950,276 | 117,543,668 |
Common stock, shares outstanding | 117,950,276 | 117,543,668 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,577,598 | $ 1,440,222 | $ 4,866,925 | $ 4,269,844 |
Cost of sales | 992,829 | 963,497 | 3,075,665 | 2,843,989 |
Gross profit | 584,769 | 476,725 | 1,791,260 | 1,425,855 |
Selling, general and administrative expenses | 475,053 | 404,285 | 1,400,234 | 1,162,226 |
Depreciation and amortization (exclusive of depreciation included in cost of sales) | 31,067 | 30,764 | 92,637 | 89,788 |
Store closure and other costs, net | 268 | 2,119 | (344) | 3,396 |
Income from operations | 78,381 | 39,557 | 298,733 | 170,445 |
Interest expense, net | 3,117 | 5,557 | 11,681 | 15,997 |
Income before income taxes | 75,264 | 34,000 | 287,052 | 154,448 |
Income tax provision | 15,023 | 7,740 | 67,999 | 36,453 |
Net income | $ 60,241 | $ 26,260 | $ 219,053 | $ 117,995 |
Net income per share: | ||||
Basic | $ 0.51 | $ 0.22 | $ 1.86 | $ 0.98 |
Diluted | $ 0.51 | $ 0.22 | $ 1.85 | $ 0.98 |
Weighted average shares outstanding: | ||||
Basic | 117,947 | 118,029 | 117,775 | 119,846 |
Diluted | 118,450 | 118,174 | 118,157 | 120,227 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 60,241 | $ 26,260 | $ 219,053 | $ 117,995 |
Other comprehensive income/(loss), net of tax | ||||
Unrealized gain/(loss) on cash flow hedging activities, net of income tax of $261, ($365), ($1,661), and (2,341) | 755 | (1,056) | (4,802) | (6,769) |
Total other comprehensive income/(loss) | 755 | (1,056) | (4,802) | (6,769) |
Comprehensive income | $ 60,996 | $ 25,204 | $ 214,251 | $ 111,226 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Income tax expenses (Benefit) on cash flow hedging activities | $ 261 | $ (365) | $ (1,661) | $ (2,341) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Additional Paid In Capital [Member] | (Accumulated Deficit) Retained Earnings [Member] | (Accumulated Deficit) Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning Balance at Dec. 30, 2018 | $ 589,196 | $ 124 | $ 657,140 | $ (69,202) | $ 1,134 | ||
Beginning Balance, Shares at Dec. 30, 2018 | 124,581,190 | ||||||
Net income | 117,995 | 117,995 | |||||
Other comprehensive income/(loss) | (6,769) | (6,769) | |||||
Issuance of shares under stock plans | 4,482 | $ 1 | 4,481 | ||||
Issuance of shares under stock plans, Shares | 769,808 | ||||||
Repurchase and retirement of common stock | $ (163,310) | $ (7) | (163,303) | ||||
Repurchase and retirement of common stock, Shares | (7,302,878) | (7,302,878) | |||||
Share-based compensation | $ 6,901 | 6,901 | |||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | ||||||
Ending Balance at Sep. 29, 2019 | $ 559,921 | $ 11,426 | $ 118 | 668,522 | (103,084) | $ 11,426 | (5,635) |
Ending Balance, Shares at Sep. 29, 2019 | 118,048,120 | ||||||
Beginning Balance at Jun. 30, 2019 | 531,649 | $ 118 | 665,454 | (129,344) | (4,579) | ||
Beginning Balance, Shares at Jun. 30, 2019 | 118,022,271 | ||||||
Net income | 26,260 | 26,260 | |||||
Other comprehensive income/(loss) | (1,056) | (1,056) | |||||
Issuance of shares under stock plans | 358 | 358 | |||||
Issuance of shares under stock plans, Shares | 25,849 | ||||||
Share-based compensation | $ 2,710 | 2,710 | |||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | ||||||
Ending Balance at Sep. 29, 2019 | $ 559,921 | $ 11,426 | $ 118 | 668,522 | (103,084) | $ 11,426 | (5,635) |
Ending Balance, Shares at Sep. 29, 2019 | 118,048,120 | ||||||
Beginning Balance at Dec. 29, 2019 | 581,952 | $ 117 | 670,966 | (84,449) | (4,682) | ||
Beginning Balance, Shares at Dec. 29, 2019 | 117,452,918 | ||||||
Net income | 219,053 | 219,053 | |||||
Other comprehensive income/(loss) | (4,802) | (4,802) | |||||
Issuance of shares under stock plans | 1,343 | 1,343 | |||||
Issuance of shares under stock plans, Shares | 497,358 | ||||||
Share-based compensation | 10,400 | 10,400 | |||||
Ending Balance at Sep. 27, 2020 | 807,946 | $ 117 | 682,709 | 134,604 | (9,484) | ||
Ending Balance, Shares at Sep. 27, 2020 | 117,950,276 | ||||||
Beginning Balance at Jun. 28, 2020 | 743,277 | $ 117 | 679,036 | 74,363 | (10,239) | ||
Beginning Balance, Shares at Jun. 28, 2020 | 117,944,450 | ||||||
Net income | 60,241 | 60,241 | |||||
Other comprehensive income/(loss) | 755 | 755 | |||||
Issuance of shares under stock plans, Shares | 5,826 | ||||||
Share-based compensation | 3,673 | 3,673 | |||||
Ending Balance at Sep. 27, 2020 | $ 807,946 | $ 117 | $ 682,709 | $ 134,604 | $ (9,484) | ||
Ending Balance, Shares at Sep. 27, 2020 | 117,950,276 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 27, 2020 | Sep. 29, 2019 | Dec. 29, 2019 | |
Cash flows from operating activities | |||
Net income | $ 219,053 | $ 117,995 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 94,748 | 91,546 | |
Operating lease asset amortization | 71,765 | 62,251 | |
Store closure and other costs, net | (321) | 850 | |
Share-based compensation | 10,400 | 6,901 | |
Deferred income taxes | 228 | (245) | |
Other non-cash items | 1,996 | (2,873) | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 7,372 | 28,978 | |
Inventories | 18,724 | (21,348) | |
Prepaid expenses and other current assets | (8,937) | (2,379) | |
Other assets | (2,575) | (762) | |
Accounts payable | 45,806 | 63,947 | |
Accrued liabilities | (7) | 32,963 | |
Accrued salaries and benefits | 23,577 | (4,054) | |
Accrued income tax | 2,083 | 3,764 | |
Operating lease liabilities | (79,602) | (52,209) | |
Other long-term liabilities | 5,954 | (2,013) | |
Cash flows from operating activities | 410,264 | 323,312 | |
Cash flows from investing activities | |||
Purchases of property and equipment | (95,874) | (146,480) | |
Cash flows used in investing activities | (95,874) | (146,480) | |
Cash flows from financing activities | |||
Proceeds from revolving credit facilities | 187,405 | ||
Payments on revolving credit facilities | (263,000) | (125,405) | |
Payments on finance lease liabilities | (474) | (536) | |
Repurchase of common stock | (163,310) | ||
Proceeds from exercise of stock options | 1,343 | 4,483 | |
Other | (320) | ||
Cash flows used in financing activities | (262,131) | (97,683) | |
Increase in cash, cash equivalents, and restricted cash | 52,259 | 79,149 | |
Cash, cash equivalents, and restricted cash at beginning of the period | 86,785 | 2,248 | $ 2,248 |
Cash, cash equivalents, and restricted cash at the end of the period | 139,044 | 81,397 | $ 86,785 |
Supplemental disclosure of cash flow information | |||
Cash paid for interest | 11,513 | 15,212 | |
Cash paid for income taxes | 63,393 | 32,115 | |
Leased assets obtained in exchange for new operating lease liabilities | 90,751 | 157,134 | |
Supplemental disclosure of non-cash investing and financing activities | |||
Property and equipment in accounts payable | $ 13,016 | $ 18,396 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 27, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation Sprouts Farmers Market, Inc., a Delaware corporation, through its subsidiaries, operates as a healthy grocery store that offers a unique grocery experience featuring fresh, natural, and organic food through an open layout with fresh produce at the heart of the store, as well as bulk foods, vitamins and supplements, packaged groceries, meat and seafood, deli, baked goods, dairy products, frozen foods, beer and wine, natural body care and household items catering to consumers’ growing interest in health and wellness. The “Company” is used to refer collectively to Sprouts Farmers Market, Inc. and unless the context otherwise requires, its subsidiaries. The accompanying unaudited consolidated financial statements include the accounts of the Company in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and are in the form prescribed by the Securities and Exchange Commission in instructions to Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, considered necessary for a fair statement of the Company's financial position, results of operations and cash flows for the periods indicated. All material intercompany accounts and transactions have been eliminated in consolidation. Interim results are not necessarily indicative of results for any other interim period or for a full fiscal year. The information included in these consolidated financial statements and notes thereto should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations included herein and Management’s Discussion and Analysis of Financial Condition and Results of Operations and the consolidated financial statements and notes thereto for the fiscal year ended December 29, 2019 (“fiscal year 2019”) included in the Company’s Annual Report on Form 10-K, filed on February 20, 2020. The year-end balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. The Company reports its results of operations on a 52- or 53-week fiscal calendar ending on the Sunday closest to December 31. The fiscal year ending January 3, 2021 (“fiscal year 2020”) is a 53-week year and fiscal year 2019 was a 52-week year. The Company reports its results of operations on a 13-week quarter, except for 53-week fiscal years. All dollar amounts are in thousands, unless otherwise noted. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 27, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Revenue Recognition The Company’s performance obligations are satisfied upon the transfer of goods to the customer, which occurs at the point of sale, and payment from customers is also due at the time of sale. Proceeds from the sale of gift cards are recorded as a liability at the time of sale and recognized as sales when they are redeemed by the customer and the performance obligation is satisfied by the Company. The Company’s gift cards do not expire. Based on historical redemption rates, a small and relatively stable percentage of gift cards will never be redeemed, referred to as "breakage." Estimated breakage revenue is recognized over time in proportion to actual gift card redemptions and was not material in any period presented. Balance at December 29, 2019 Gift Cards Issued During Current Period but Not Redeemed (a) Revenue Recognized from Beginning Liability Balance at September 27, 2020 Gift card liability, net $ 15,902 $ 2,134 $ (9,031 ) $ 9,005 (a) net of estimated breakage The Company does not have any material contract assets or receivables from contracts with customers, any revenue recognized in the current period from performance obligations satisfied in previous periods, or any remaining performance obligations as of September 27, 2020. Restricted Cash Restricted cash relates to defined benefit plan forfeitures as well as health and welfare restricted funds of approximately $1.5 million and $1.5 million as of September 27, 2020 and December 29, 2019, respectively. These balances are included in prepaid expenses and other current assets in the consolidated balance sheets. Recently Adopted Accounting Pronouncements Financial Instruments – Credit Losses In June 2016, the FASB issued ASU no. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this update introduce a new standard to replace the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Subsequent to the initial standards, the FASB has also issued several ASUs to clarify specific topics. The Company adopted ASU 2016-13 effective December 30, 2019, using the modified retrospective approach. There was no impact to opening retained earnings as of December 30, 2019, or the consolidated financial statements dated September 27, 2020. Compensation – Fair Value Disclosures In August 2018, the FASB issued ASU No. 2018-13, “Fair value measurement (Topic 820) – Disclosure framework – Changes to the disclosure requirements for fair value measurement.” The amendments in this update improve the effectiveness of fair value measurement disclosures. The Company adopted this standard effective December 30, 2019. There was no impact on the Company’s disclosure in its consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted Income Taxes – Accounting for Income Taxes In December 2019, the FASB issued ASU no. 2019-12, “Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes.” Among other things, the amendment removes certain exceptions for periods with operating losses, and reduces the complexity surrounding franchise tax, step up in tax basis of goodwill in conjunction with a business combination, and timing of enacting changes in tax laws during interim periods. The amendments in this update are effective for the Company for its fiscal year 2021 with early adoption permitted. The Company does not expect this update to have a material effect on the Company’s consolidated financial statements. Reference Rate Reform In March 2020, the FASB issued ASU no. 2020-04, “Reference rate reform (Topic 848) – Facilitation of the effects of reference rate reform on financial reporting”. The amendments in this update provide optional expedients and exceptions for a limited period of time to ease the potential burden in accounting for contracts, hedging relationships, and other transactions affected by reference rate reform. Generally, the guidance allows contract modifications related to reference rate reform to be considered events that do not require remeasurements or reassessments of previous accounting determinations at the modification date. This update only applies to modifications made prior to December 31, 2022. No such modifications occurred in the period ending September 27, 2020. The Company expects to utilize this optional guidance but does not expect it to have a material impact on its consolidated financial statements. No other new accounting pronouncements issued or effective during the thirteen weeks ended September 27, 2020 had, or are expected to have, a material impact on the Company’s consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 27, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements The Company records its financial assets and liabilities in accordance with the framework for measuring fair value in accordance with GAAP. This framework establishes a fair value hierarchy that prioritizes the inputs used to measure fair value: Level 1: Quoted prices for identical instruments in active markets. Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3: Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Fair value measurements of nonfinancial assets and nonfinancial liabilities are primarily used in the valuation of derivative instruments, impairment analysis of goodwill, intangible assets and long-lived assets. The following tables present the fair value hierarchy for the Company’s financial liabilities measured at fair value on a recurring basis as of September 27, 2020 and December 29, 2019: September 27, 2020 Level 1 Level 2 Level 3 Total Long-term debt $ — $ 275,000 $ — $ 275,000 Interest rate swap liability — 13,209 — 13,209 Total financial liabilities $ — $ 288,209 $ — $ 288,209 December 29, 2019 Level 1 Level 2 Level 3 Total Long-term debt $ — $ 538,000 $ — $ 538,000 Interest rate swap liability — 6,305 — 6,305 Total financial liabilities $ — $ 544,305 $ — $ 544,305 The Company’s interest rate swaps are considered Level 2 in the hierarchy and are valued using an income approach. Expected future cash flows are converted to a present value amount based on market expectations of the yield curve on floating interest rates, which is readily available on public markets. The determination of fair values of certain tangible and intangible assets for purposes of the Company’s goodwill impairment evaluation as described above is based upon Level 3 inputs. The weighted average cost of capital is estimated using information from comparable companies and management’s judgment related to the risk associated with the operations of the stores. Cash, cash equivalents, restricted cash, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued liabilities, and accrued salaries and benefits approximate fair value because of the short maturity of those instruments. Based on comparable open market transactions, the fair value of the long-term debt approximated carrying value as of September 27, 2020 and December 29, 2019. |
Long-Term Debt and Finance Leas
Long-Term Debt and Finance Lease Liabilities | 9 Months Ended |
Sep. 27, 2020 | |
Long Term Debt And Finance Lease Liabilities [Abstract] | |
Long-Term Debt and Finance Lease Liabilities | 4. Long-Term Debt and Finance Lease Liabilities A summary of long-term debt and finance lease liabilities is as follows: As of Facility Maturity Interest Rate September 27, 2020 December 29, 2019 Senior secured debt $700.0 million Credit Agreement March 27, 2023 Variable $ 275,000 $ 538,000 Finance lease liabilities Various n/a 10,704 11,419 Long-term debt and finance lease liabilities $ 285,704 $ 549,419 Senior Secured Revolving Credit Facility The Company’s subsidiary, Sprouts Farmers Markets Holdings, LLC (“Intermediate Holdings”), is the borrower under an amended and restated credit agreement entered into on March 27, 2018 (the “Amended and Restated Credit Agreement”) to amend and restate the Company’s former’s senior secured credit facility, dated April 17, 2015 (the “Former Credit Facility”). The Amended and Restated Credit Agreement provides for a revolving credit facility with an initial aggregate commitment of $700.0 million, an increase from $450.0 million from the Former Credit Facility, which may be increased from time to time pursuant to an expansion feature set forth in the Amended and Restated Credit Agreement. The Company capitalized debt issuance costs of $2.1 million related to the Amended and Restated Credit Agreement which combined with the remaining $0.7 million debt issuance costs for the Former Credit Facility, are being amortized on a straight-line basis to interest expense over the five-year The Amended and Restated Credit Agreement also provides for a letter of credit sub-facility and a $15.0 million swingline facility. Letters of credit issued under the Amended and Restated Credit Agreement reduce its borrowing capacity. Letters of credit totaling $34.4 million have been issued as of September 27, 2020, primarily to support the Company’s insurance programs. On March 6, 2019, Intermediate Holdings entered into an amendment to the Amended and Restated Credit Agreement intended to align the treatment of certain lease accounting terms with the Company’s adoption of ASC 842. This amendment had no impact on borrowing capacity, interest rate, or maturity. Guarantees Obligations under the Amended and Restated Credit Agreement are guaranteed by the Company and all of its current and future wholly-owned material domestic subsidiaries (other than the borrower), and are secured by first-priority security interests in substantially all of the assets of the Company and its subsidiary guarantors, including, without limitation, a pledge by the Company of its equity interest in Intermediate Holdings. Interest and Fees Loans under the Amended and Restated Credit Agreement initially bore interest at LIBOR plus 1.50% per annum or prime plus 0.50%. The interest rate margins are subject to adjustment pursuant to a pricing grid based on the Company’s total net leverage ratio, as set forth in the Amended and Restated Credit Agreement. Under the terms of the Amended and Restated Credit Agreement, the Company is obligated to pay a commitment fee on the available unused amount of the commitments between 0.15% to 0.30% per annum, also pursuant to a pricing grid based on the Company’s total net leverage ratio. As of September 27, 2020, loans under the Amended and Restated Credit Agreement bore interest at LIBOR plus 1.25% per annum or prime plus 0.25%. The interest rate on approximately 91% of outstanding debt under the Amended and Restated Credit Agreement is fixed, reflecting the effects of floating to fixed interest rate swaps (see Note 9, “Derivative Financial Instruments”). As of September 27, 2020, Payments and Borrowings The Amended and Restated Credit Agreement is scheduled to mature, and the commitments thereunder will terminate on March 27, 2023, subject to extensions as set forth therein. The Company may prepay loans and permanently reduce commitments under the Amended and Restated Credit Agreement at any time in agreed-upon minimum principal amounts, without premium or penalty (except LIBOR breakage costs, if applicable). During the thirteen and thirty-nine weeks ended September 27, 2020, the Company made no additional borrowings and made principal payments totaling $176.0 million and $263.0 million, respectively; resulting in total outstanding debt under the Amended and Restated Credit Agreement of $275.0 million as of September 27, 2020. During fiscal year 2019, the Company borrowed an additional $265.4 million to be used in connection with the Company’s share repurchase programs (see Note 7, “Stockholders’ Equity”) and made a total of $180.4 million of principal payments; resulting in total outstanding debt under the Amended and Restated Credit Agreement of $538.0 million at December 29, 2019. Covenants The Amended and Restated Credit Agreement contains financial, affirmative and negative covenants. The negative covenants include, among other things, limitations on the Company’s ability to: • incur additional indebtedness; • grant additional liens; • enter into sale-leaseback transactions; • make loans or investments; • merge, consolidate or enter into acquisitions; • pay dividends or distributions; • enter into transactions with affiliates; • enter into new lines of business; • modify the terms of debt or other material agreements; and • change its fiscal year. Each of these covenants is subject to customary and other agreed-upon exceptions. In addition, the Amended and Restated Credit Agreement requires that the Company and its subsidiaries maintain a maximum total net leverage ratio not to exceed 3.25 to 1.00 and minimum interest coverage ratio not to be less than 1.75 to 1.00. Each of these covenants is tested on the last day of each fiscal quarter. The Company was in compliance with all applicable covenants under the Amended and Restated Credit Agreement as of September 27, 2020. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 27, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 5. Income Taxes The Company’s effective tax rate decreased to 20.0% for the thirteen weeks ended September 27, 2020, compared to 22.8% for the thirteen weeks ended September 29, 2019. The decrease in the effective tax rate was primarily due to a benefit for return to provision adjustments in the current year period, partially offset by a decrease in federal tax credits. The income tax benefits resulting from discrete adjustments and return to provision adjustments were $5.4 million and $1.0 million for the thirteen weeks ended September 27, 2020 and September 29, 2019, respectively. The Company’s effective tax rate increased to 23.7% for the thirty-nine weeks ended September 27, 2020, compared to 23.6% for the thirty-nine weeks ended September 29, 2019. The increase in the effective tax rate was primarily due to a decrease in federal tax credits along with tax detriments for share-based payment awards in the current year period compared to prior year period benefits, partially offset by a benefit for discrete adjustments and return to provision adjustments in the current year period. The income tax benefits resulting from return to provision adjustments were $5.4 million and $1.7 million for the thirty-nine weeks ended September 27, 2020 and September 29, 2019, respectively. The Company files income tax returns for federal purposes and in many states. The Company’s tax filings remain subject to examination by applicable tax authorities for a certain length of time, generally three years, following the tax year to which those filings relate. The Company’s U.S. federal income tax return for the fiscal year ended December 31, 2017 is currently under examination by the Internal Revenue Service. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 27, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. Commitments and Contingencies The Company is exposed to claims and litigation matters arising in the ordinary course of business and uses various methods to resolve these matters that are believed to best serve the interests of the Company’s stakeholders. The Company’s primary contingencies are associated with self-insurance obligations and litigation matters. Self-insurance liabilities require significant judgment and actual claim settlements and associated expenses may differ from the Company’s current provisions for loss. Securities Action On March 4, 2016, a complaint was filed in the Superior Court for the State of Arizona against the Company and certain of its directors and officers on behalf of a purported class of purchasers of shares of the Company’s common stock in its underwritten secondary public offering which closed on March 10, 2015 (the “March 2015 Offering”). The complaint purported to state claims under Sections 11, 12 and 15 of the Securities Act of 1933, as amended, based on an alleged failure by the Company to disclose adequate information about produce price deflation in the March 2015 Offering documents. The complaint sought damages on behalf of the purported class in an unspecified amount, rescission, and an award of reasonable costs and attorneys’ fees. On August 4, 2018, the Company reached an agreement in principle to settle these claims. The parties’ settlement agreement was approved by the court on May 31, 2019 and the complaint was subsequently dismissed. The settlement was funded from the Company’s directors and officers liability insurance policy and did not have a material impact on the consolidated financial statements. “Phishing” Scam Actions In April 2016, four complaints were filed, two in the federal courts of California, one in the Superior Court of California and one in the federal court in the District of Colorado, each on behalf of a purported class of the Company’s current and former team members whose personally identifiable information (“PII”) was inadvertently disclosed to an unauthorized third party that perpetrated an email “phishing” scam against one of the Company’s team members. The complaints alleged the Company failed to properly safeguard the PII in accordance with applicable law. The complaints sought damages on behalf of the purported class in unspecified amounts, attorneys’ fees and litigation expenses. On March 1, 2019, a number of individual plaintiffs filed arbitration demands. On May 15, 2019, certain other plaintiffs filed a second amended class action complaint in the District of Arizona, alleging that certain subclasses of team members are not subject to the Company’s arbitration agreement and attempted to pursue those team members’ claims in federal court. In late August 2019, the Company reached an agreement in principle to settle the majority of these claims, which were funded in the fourth quarter of 2019. Primary funding for the settlement came from the Company’s cyber insurance policy, and the settlement did not have a material impact on the consolidated financial statements. Following the group settlement, three (3) individual claimants planned to proceed with arbitration of their claims. The three individual arbitrations were settled in late June and early July 2020, with immaterial settlement amounts fully funded by the Company’s cyber insurance policy. Proposition 65 Coffee Action On April 13, 2010, an organization named Council for Education and Research on Toxics (“CERT”) filed a lawsuit in the Superior Court of the State of California, County of Los Angeles, against nearly 80 defendants who manufacture, package, distribute or sell brewed coffee, including the Company. CERT alleged that the defendants failed to provide warnings for their coffee products of exposure to the chemical acrylamide as required under California Health and Safety Code section 25249.5, the California Safe Drinking Water and Toxic Enforcement Act of 1986, better known as Proposition 65. CERT seeks equitable relief, i ncluding providing warnings to consumers of coffee products, as well as civil penalties. The Company, as part of a joint defense group, asserted multiple defenses against the lawsuit. On May 7, 2018, the trial court issued a ruling adverse to defendants on these defenses to liability. On June 15, 2018, before the court tried damages, remedies and attorneys' fees, California’s Office of Environmental Health Hazard Assessment (“OEHHA”) published a proposal to amend Proposition 65’s implementing regulations by adding a stand-alone sentence that reads as follows: “Exposures to listed chemicals in coffee created by and inherent in the processes of roasting coffee beans or brewing coffee do not pose a significant risk of cancer.” The proposed regulation has been finalized with an effective date of October 1, 2019. The defendants amended their answers to assert the regulation as an affirmative defense. On August 25, 2020, the court granted the defense motion for summary judgment on the affirmative defense, and the case was dismissed. Although the Company expects CERT to appeal the ruling on the defense motion for summary judgment, the Company is unable to predict or reasonably estimate any potential loss or effect on the Company or its operations. Accordingly, no loss contingency was recorded for this matter. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 27, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | 7. Stockholders’ Equity Share Repurchases The following table outlines the common stock share repurchase programs authorized by the Company’s board of directors and the related repurchase activity and available authorization as of September 27, 2020. Effective date Expiration date Amount authorized Cost of repurchases Authorization available February 20, 2017 December 31, 2018 $ 250,000 $ 250,000 $ — February 20, 2018 December 31, 2019 $ 350,000 $ 308,017 $ — The Company’s board of directors has not authorized additional share repurchases subsequent to the expiration of the prior authorization on December 31, 2019, and there was no share repurchase authorization available as of September 27, 2020. Share repurchase activity under the Company’s repurchase programs for the periods indicated was as follows (total cost in thousands): Thirteen weeks ended Thirty-nine weeks ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Number of common shares acquired — — — 7,302,878 Average price per common share acquired $ — $ — $ — $ 22.36 Total cost of common shares acquired $ — $ — $ — $ 163,310 Shares purchased under the Company’s repurchase programs were subsequently retired. |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 27, 2020 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 8. Net Income Per Share The computation of net income per share is based on the number of weighted average shares outstanding during the period. The computation of diluted net income per share includes the dilutive effect of share equivalents consisting of incremental shares deemed outstanding from the assumed exercise of options, assumed vesting of restricted stock units (“RSUs”), assumed vesting of performance stock awards (“PSAs”), and assumed vesting of restricted stock awards (“RSAs”). A reconciliation of the numerators and denominators of the basic and diluted net income per share calculations is as follows (in thousands, except per share amounts): Thirteen weeks ended Thirty-nine weeks ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Basic net income per share: Net income $ 60,241 $ 26,260 $ 219,053 $ 117,995 Weighted average shares outstanding 117,947 118,029 117,775 119,846 Basic net income per share $ 0.51 $ 0.22 $ 1.86 $ 0.98 Diluted net income per share: Net income $ 60,241 $ 26,260 $ 219,053 $ 117,995 Weighted average shares outstanding - basic 117,947 118,029 117,775 119,846 Dilutive effect of share-based awards: Assumed exercise of options to purchase shares 160 32 14 62 RSUs 318 42 315 167 RSAs — 25 12 58 PSAs 25 46 41 94 Weighted average shares and equivalent shares outstanding 118,450 118,174 118,157 120,227 Diluted net income per share $ 0.51 $ 0.22 $ 1.85 $ 0.98 For the thirteen weeks ended September 27, 2020, the Company had 0.2 million options and 0.3 million PSAs outstanding which were excluded from the computation of diluted net income per share as those awards would have been antidilutive or were performance awards with performance conditions not yet deemed met. For the thirteen weeks ended September 29, 2019, the Company had 0.6 million options, 0.4 million RSUs and 0.1 million PSAs outstanding which were excluded from the computation of diluted net income per share as those awards would have been antidilutive or were performance awards with performance conditions not yet deemed met. For the thirty-nine weeks ended September 27, 2020, the Company had 0.2 million options, 0.1 million RSUs, and 0.3 million PSAs outstanding which were excluded from the computation of diluted net income per share as those awards would have been antidilutive or were performance awards with performance conditions not yet deemed met. For the thirty-nine weeks ended September 29, 2019, the Company had 0.6 million options, 0.3 million RSUs and 0.4 million PSAs outstanding which were excluded from the computation of diluted net income per share as those awards would have been antidilutive or were performance awards with performance conditions not yet deemed met. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 27, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 9. Derivative Financial Instruments The Company entered into an interest rate swap agreement in December 2017 to manage its cash flow associated with variable interest rates. This forward contract has been designated and qualifies as a cash flow hedge, and its change in fair value is recorded as a component of other comprehensive income and reclassified into earnings in the same period or periods in which the forecasted transaction occurs. The forward contract consists of three cash flow hedges. To qualify as a hedge, the Company needs to formally document, designate and assess the effectiveness of the transactions that receive hedge accounting. The notional dollar amount of the three outstanding swaps was $250.0 These interest rate swaps have been designated and qualify as cash flow hedges and have met the requirements to assume zero ineffectiveness. The Company reviews the effectiveness of its hedging instruments on a quarterly basis. The counterparties to these derivative financial instruments are major financial institutions. The Company evaluates the credit ratings of the financial institutions and believes that credit risk is at an acceptable level. The following table summarizes the fair value of the Company’s derivative instruments designated as hedging instruments: As of September 27, 2020 As of December 29, 2019 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Interest rate swaps Accrued liabilities $ 1,848 Accrued liabilities $ 1,736 Interest rate swaps Other long-term liabilities 11,361 Other long-term liabilities 4,569 The gain or loss on these derivative instruments is recognized in other comprehensive income, net of tax, with the portion related to current period interest payments reclassified to interest expense on the consolidated statements of income. The following table summarizes these losses (gains) classified on the consolidated statements of income: Thirteen weeks ended Thirty-nine weeks ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Consolidated Statements of Income Classification Interest expense (income), net $ 1,345 $ (54 ) $ 2,855 $ (458 ) |
Comprehensive Income
Comprehensive Income | 9 Months Ended |
Sep. 27, 2020 | |
Equity [Abstract] | |
Comprehensive Income | 10. Comprehensive Income The following table presents the changes in accumulated other comprehensive income (loss) for the thirty-nine weeks ended September 29, 2019 and September 27, 2020. Cash Flow Hedges Balance at December 30, 2018 $ 1,134 Other comprehensive income (loss), net of tax Unrealized loss on cash flow hedging activities, net of income tax of ($2,341) (6,769 ) Total other comprehensive income (loss) (6,769 ) Balance at September 29, 2019 $ (5,635 ) Balance at December 29, 2019 $ (4,682 ) Other comprehensive income (loss), net of tax Unrealized loss on cash flow hedging activities, net of income tax of ($1,661) (4,802 ) Total other comprehensive income (loss) (4,802 ) Balance at September 27, 2020 $ (9,484 ) Amounts reclassified from accumulated other comprehensive income (loss) are included within interest expense on the consolidated statements of income. |
Segments
Segments | 9 Months Ended |
Sep. 27, 2020 | |
Segment Reporting [Abstract] | |
Segments | 11. Segments The Company has one reportable and one operating segment, healthy grocery stores. In accordance with Accounting Standards Codification 606, “Revenue from Contracts with Customers,” the following table represents a disaggregation of revenue for the thirteen and thirty-nine weeks ended September 27, 2020 and September 29, 2019. Thirteen weeks ended September 27, 2020 September 29, 2019 Perishables $ 918,860 58.2 % $ 844,553 58.6 % Non-Perishables 658,738 41.8 % 595,669 41.4 % Net Sales $ 1,577,598 100.0 % $ 1,440,222 100.0 % Thirty-nine weeks ended September 27, 2020 September 29, 2019 Perishables $ 2,782,084 57.2 % $ 2,479,091 58.1 % Non-Perishables 2,084,841 42.8 % 1,790,753 41.9 % Net Sales $ 4,866,925 100.0 % $ 4,269,844 100.0 % The Company categorizes the varieties of products it sells as perishable and non-perishable. Perishable product categories include produce, meat, seafood, deli, bakery, floral and dairy and dairy alternatives. Non-perishable product categories include grocery, vitamins and supplements, bulk items, frozen foods, beer and wine, and natural health and body care. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 27, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 12. Share-Based Compensation 2013 Incentive Plan The Company’s board of directors adopted, and its equity holders approved, the Sprouts Farmers Market, Inc. 2013 Incentive Plan (the “2013 Incentive Plan”). The 2013 Incentive Plan became effective July 31, 2013 in connection with the Company’s initial public offering. The 2013 Incentive Plan serves as the umbrella plan for the Company’s share-based and cash-based incentive compensation programs for its directors, officers and other team members. Awards granted under these plans include RSUs, PSAs, and RSAs. On May 1, 2015, the Company’s stockholders approved the material terms of the performance goals under the 2013 Incentive Plan for purposes of Section 162(m) of the Internal Revenue Code as then in effect. Awards Granted During the thirty-nine weeks ended September 27, 2020, the Company granted the following share-based compensation awards under the 2013 Incentive Plan: Grant Date RSUs PSAs Options March 9, 2020 485,367 174,902 1,055,907 May 12, 2020 66,550 11,389 15,569 August 10, 2020 35,655 5,762 14,052 Total 587,572 192,053 1,085,528 Weighted-average grant date fair value $ 18.01 $ 17.26 $ 4.94 Weighted-average exercise price — — $ 16.71 The aggregate number of shares of common stock that may be issued to team members and directors under the 2013 Incentive Plan may not exceed 10,089,072 . Shares subject to awards granted under the 2013 Incentive Plan which are subsequently forfeited, expire unexercised or are otherwise not issued will not be treated as having been issued for purposes of the share limitation. As of September 27, 2020 , there were stock awards outstanding and shares remaining available for issuance under the 2013 Incentive Plan. Stock Options The Company uses the Black-Scholes option pricing model to estimate the fair value of options at grant date. Options vest in accordance with the terms set forth in the grant letter. Time-based options granted prior to fiscal year 2016 generally vested ratably over a period of 12 quarters (three years), and time-based options granted after 2016 vest annually over a period of three years. RSUs The fair value of RSUs is based on the closing price of the Company’s common stock on the grant date. RSUs generally vest annually over a period of two or three years from the grant date. PSAs PSAs granted in March 2017 were subject to the Company achieving certain earnings per share performance targets during fiscal year 2017. The criteria was based on a range of performance targets in which grantees could earn between 10% and 150% of the base number of awards granted. The performance conditions with respect to fiscal year 2017 earnings per share were deemed to have been met, and the PSAs vested 50% on the second anniversary of the grant date (March 2019) and vested 50% on the third anniversary of the grant date (March 2020). During the thirty-nine weeks ended September 27, 2020, 35,697 of the 2017 PSAs vested. There were no outstanding 2017 PSAs as of September 27, 2020. PSAs granted in March 2018 are subject to the Company achieving certain EBIT performance targets for the 2020 fiscal year. The criteria is based on a range of performance targets in which grantees may earn 0% to 200% of the base number of awards granted. If performance conditions are met, the applicable number of performance shares will vest on the third anniversary of the grant date (March 2021). PSAs granted in 2019 are subject to the Company achieving certain EBIT performance targets for the 2021 fiscal year. The criteria is based on a range of performance targets in which grantees may earn 0% to 200% of the base number of awards granted. If performance conditions are met, the applicable number of performance shares will vest on the third anniversary of the grant date (March 2022). PSAs granted in 2020 are subject to the Company achieving certain earnings before taxes (“EBT”) performance targets for the 2022 fiscal year. The criteria is based on a range of performance targets in which grantees may earn 0% to 200% of the base number of awards granted. If performance conditions are met, the applicable number of performance shares will vest on the third anniversary of the grant date (March 2023). RSAs The fair value of RSAs is based on the closing price of the Company’s common stock on the grant date. Outstanding RSA grants vest annually over three years. During the thirty-nine weeks ended September 27, 2020, 55,053 RSAs vested and there were no outstanding RSAs as of September 27, 2020. Share-based Compensation Expense The Company presents share-based compensation expense in selling, general and administrative expenses on the Company’s consolidated statements of income. The amount recognized was as follows: Thirteen weeks ended Thirty-nine weeks ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Share-based compensation expense before income taxes $ 3,673 $ 2,710 $ 10,400 $ 6,901 Income tax benefit (663 ) (697 ) (2,011 ) (1,647 ) Net share-based compensation expense $ 3,010 $ 2,013 $ 8,389 $ 5,254 The following share-based awards were outstanding as of September 27, 2020 and September 29, 2019: As of September 27, 2020 September 29, 2019 (in thousands) Options Vested 235 578 Unvested 1,095 64 RSUs 914 774 PSAs 315 225 RSAs — 55 As of September 27, 2020, total unrecognized compensation expense and remaining weighted average recognition period related to outstanding share-based awards was as follows: Unrecognized compensation expense Remaining weighted average recognition period Options $ 4,469 2.4 RSUs 13,410 1.9 PSAs 7,793 2.0 RSAs — — Total unrecognized compensation expense at September 27, 2020 $ 25,672 During the thirty-nine weeks ended September 27, 2020 and September 29, 2019, the Company received $1.3 million and $4.5 million, respectively, in cash proceeds from the exercise of options. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 27, 2020 | |
Accounting Policies [Abstract] | |
Fiscal Years | The Company reports its results of operations on a 52- or 53-week fiscal calendar ending on the Sunday closest to December 31. The fiscal year ending January 3, 2021 (“fiscal year 2020”) is a 53-week year and fiscal year 2019 was a 52-week year. The Company reports its results of operations on a 13-week quarter, except for 53-week fiscal years. |
Revenue Recognition | Revenue Recognition The Company’s performance obligations are satisfied upon the transfer of goods to the customer, which occurs at the point of sale, and payment from customers is also due at the time of sale. Proceeds from the sale of gift cards are recorded as a liability at the time of sale and recognized as sales when they are redeemed by the customer and the performance obligation is satisfied by the Company. The Company’s gift cards do not expire. Based on historical redemption rates, a small and relatively stable percentage of gift cards will never be redeemed, referred to as "breakage." Estimated breakage revenue is recognized over time in proportion to actual gift card redemptions and was not material in any period presented. Balance at December 29, 2019 Gift Cards Issued During Current Period but Not Redeemed (a) Revenue Recognized from Beginning Liability Balance at September 27, 2020 Gift card liability, net $ 15,902 $ 2,134 $ (9,031 ) $ 9,005 (a) net of estimated breakage The Company does not have any material contract assets or receivables from contracts with customers, any revenue recognized in the current period from performance obligations satisfied in previous periods, or any remaining performance obligations as of September 27, 2020. |
Restricted Cash | Restricted Cash Restricted cash relates to defined benefit plan forfeitures as well as health and welfare restricted funds of approximately $1.5 million and $1.5 million as of September 27, 2020 and December 29, 2019, respectively. These balances are included in prepaid expenses and other current assets in the consolidated balance sheets. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Financial Instruments – Credit Losses In June 2016, the FASB issued ASU no. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this update introduce a new standard to replace the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Subsequent to the initial standards, the FASB has also issued several ASUs to clarify specific topics. The Company adopted ASU 2016-13 effective December 30, 2019, using the modified retrospective approach. There was no impact to opening retained earnings as of December 30, 2019, or the consolidated financial statements dated September 27, 2020. Compensation – Fair Value Disclosures In August 2018, the FASB issued ASU No. 2018-13, “Fair value measurement (Topic 820) – Disclosure framework – Changes to the disclosure requirements for fair value measurement.” The amendments in this update improve the effectiveness of fair value measurement disclosures. The Company adopted this standard effective December 30, 2019. There was no impact on the Company’s disclosure in its consolidated financial statements. |
Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted Income Taxes – Accounting for Income Taxes In December 2019, the FASB issued ASU no. 2019-12, “Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes.” Among other things, the amendment removes certain exceptions for periods with operating losses, and reduces the complexity surrounding franchise tax, step up in tax basis of goodwill in conjunction with a business combination, and timing of enacting changes in tax laws during interim periods. The amendments in this update are effective for the Company for its fiscal year 2021 with early adoption permitted. The Company does not expect this update to have a material effect on the Company’s consolidated financial statements. Reference Rate Reform In March 2020, the FASB issued ASU no. 2020-04, “Reference rate reform (Topic 848) – Facilitation of the effects of reference rate reform on financial reporting”. The amendments in this update provide optional expedients and exceptions for a limited period of time to ease the potential burden in accounting for contracts, hedging relationships, and other transactions affected by reference rate reform. Generally, the guidance allows contract modifications related to reference rate reform to be considered events that do not require remeasurements or reassessments of previous accounting determinations at the modification date. This update only applies to modifications made prior to December 31, 2022. No such modifications occurred in the period ending September 27, 2020. The Company expects to utilize this optional guidance but does not expect it to have a material impact on its consolidated financial statements. No other new accounting pronouncements issued or effective during the thirteen weeks ended September 27, 2020 had, or are expected to have, a material impact on the Company’s consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Gift Card Revenue [Member] | |
Schedule of Estimated Breakage Revenue Recognized | Estimated breakage revenue is recognized over time in proportion to actual gift card redemptions and was not material in any period presented. Balance at December 29, 2019 Gift Cards Issued During Current Period but Not Redeemed (a) Revenue Recognized from Beginning Liability Balance at September 27, 2020 Gift card liability, net $ 15,902 $ 2,134 $ (9,031 ) $ 9,005 (a) net of estimated breakage |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Liabilities Measured at Fair Value on Recurring Basis | The following tables present the fair value hierarchy for the Company’s financial liabilities measured at fair value on a recurring basis as of September 27, 2020 and December 29, 2019: September 27, 2020 Level 1 Level 2 Level 3 Total Long-term debt $ — $ 275,000 $ — $ 275,000 Interest rate swap liability — 13,209 — 13,209 Total financial liabilities $ — $ 288,209 $ — $ 288,209 December 29, 2019 Level 1 Level 2 Level 3 Total Long-term debt $ — $ 538,000 $ — $ 538,000 Interest rate swap liability — 6,305 — 6,305 Total financial liabilities $ — $ 544,305 $ — $ 544,305 |
Long-Term Debt and Finance Le_2
Long-Term Debt and Finance Lease Liabilities (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Long Term Debt And Finance Lease Liabilities [Abstract] | |
Summary of Long-Term Debt and Finance Lease Liabilities | A summary of long-term debt and finance lease liabilities is as follows: As of Facility Maturity Interest Rate September 27, 2020 December 29, 2019 Senior secured debt $700.0 million Credit Agreement March 27, 2023 Variable $ 275,000 $ 538,000 Finance lease liabilities Various n/a 10,704 11,419 Long-term debt and finance lease liabilities $ 285,704 $ 549,419 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Equity [Abstract] | |
Schedule of Common Stock Share Repurchase Programs Authorized by Board of Directors from Time to Time and Related Repurchase Activity and Available Authorized | The following table outlines the common stock share repurchase programs authorized by the Company’s board of directors and the related repurchase activity and available authorization as of September 27, 2020. Effective date Expiration date Amount authorized Cost of repurchases Authorization available February 20, 2017 December 31, 2018 $ 250,000 $ 250,000 $ — February 20, 2018 December 31, 2019 $ 350,000 $ 308,017 $ — |
Schedule of Share Repurchase Activity Under Share Repurchase Programs | Share repurchase activity under the Company’s repurchase programs for the periods indicated was as follows (total cost in thousands): Thirteen weeks ended Thirty-nine weeks ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Number of common shares acquired — — — 7,302,878 Average price per common share acquired $ — $ — $ — $ 22.36 Total cost of common shares acquired $ — $ — $ — $ 163,310 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation of Numerators and Denominators of Basic and Diluted Net Income Per Share | A reconciliation of the numerators and denominators of the basic and diluted net income per share calculations is as follows (in thousands, except per share amounts): Thirteen weeks ended Thirty-nine weeks ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Basic net income per share: Net income $ 60,241 $ 26,260 $ 219,053 $ 117,995 Weighted average shares outstanding 117,947 118,029 117,775 119,846 Basic net income per share $ 0.51 $ 0.22 $ 1.86 $ 0.98 Diluted net income per share: Net income $ 60,241 $ 26,260 $ 219,053 $ 117,995 Weighted average shares outstanding - basic 117,947 118,029 117,775 119,846 Dilutive effect of share-based awards: Assumed exercise of options to purchase shares 160 32 14 62 RSUs 318 42 315 167 RSAs — 25 12 58 PSAs 25 46 41 94 Weighted average shares and equivalent shares outstanding 118,450 118,174 118,157 120,227 Diluted net income per share $ 0.51 $ 0.22 $ 1.85 $ 0.98 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of Fair Value of Derivative Instruments | The following table summarizes the fair value of the Company’s derivative instruments designated as hedging instruments: As of September 27, 2020 As of December 29, 2019 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Interest rate swaps Accrued liabilities $ 1,848 Accrued liabilities $ 1,736 Interest rate swaps Other long-term liabilities 11,361 Other long-term liabilities 4,569 |
Summary of Losses (Gains) of Derivative Instruments | The gain or loss on these derivative instruments is recognized in other comprehensive income, net of tax, with the portion related to current period interest payments reclassified to interest expense on the consolidated statements of income. The following table summarizes these losses (gains) classified on the consolidated statements of income: Thirteen weeks ended Thirty-nine weeks ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Consolidated Statements of Income Classification Interest expense (income), net $ 1,345 $ (54 ) $ 2,855 $ (458 ) |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in accumulated other comprehensive income (loss) for the thirty-nine weeks ended September 29, 2019 and September 27, 2020. Cash Flow Hedges Balance at December 30, 2018 $ 1,134 Other comprehensive income (loss), net of tax Unrealized loss on cash flow hedging activities, net of income tax of ($2,341) (6,769 ) Total other comprehensive income (loss) (6,769 ) Balance at September 29, 2019 $ (5,635 ) Balance at December 29, 2019 $ (4,682 ) Other comprehensive income (loss), net of tax Unrealized loss on cash flow hedging activities, net of income tax of ($1,661) (4,802 ) Total other comprehensive income (loss) (4,802 ) Balance at September 27, 2020 $ (9,484 ) |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Segment Reporting [Abstract] | |
Summary of Disaggregation of Revenue | In accordance with Accounting Standards Codification 606, “Revenue from Contracts with Customers,” the following table represents a disaggregation of revenue for the thirteen and thirty-nine weeks ended September 27, 2020 and September 29, 2019. Thirteen weeks ended September 27, 2020 September 29, 2019 Perishables $ 918,860 58.2 % $ 844,553 58.6 % Non-Perishables 658,738 41.8 % 595,669 41.4 % Net Sales $ 1,577,598 100.0 % $ 1,440,222 100.0 % Thirty-nine weeks ended September 27, 2020 September 29, 2019 Perishables $ 2,782,084 57.2 % $ 2,479,091 58.1 % Non-Perishables 2,084,841 42.8 % 1,790,753 41.9 % Net Sales $ 4,866,925 100.0 % $ 4,269,844 100.0 % |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 27, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Share-Based Compensation Awards Granted | During the thirty-nine weeks ended September 27, 2020, the Company granted the following share-based compensation awards under the 2013 Incentive Plan: Grant Date RSUs PSAs Options March 9, 2020 485,367 174,902 1,055,907 May 12, 2020 66,550 11,389 15,569 August 10, 2020 35,655 5,762 14,052 Total 587,572 192,053 1,085,528 Weighted-average grant date fair value $ 18.01 $ 17.26 $ 4.94 Weighted-average exercise price — — $ 16.71 |
Summary of Share-Based Compensation Expense in Selling, General and Administrative Expenses | The Company presents share-based compensation expense in selling, general and administrative expenses on the Company’s consolidated statements of income. The amount recognized was as follows: Thirteen weeks ended Thirty-nine weeks ended September 27, 2020 September 29, 2019 September 27, 2020 September 29, 2019 Share-based compensation expense before income taxes $ 3,673 $ 2,710 $ 10,400 $ 6,901 Income tax benefit (663 ) (697 ) (2,011 ) (1,647 ) Net share-based compensation expense $ 3,010 $ 2,013 $ 8,389 $ 5,254 |
Summary of Outstanding Share-Based Awards | The following share-based awards were outstanding as of September 27, 2020 and September 29, 2019: As of September 27, 2020 September 29, 2019 (in thousands) Options Vested 235 578 Unvested 1,095 64 RSUs 914 774 PSAs 315 225 RSAs — 55 |
Summary of Total Unrecognized Compensation Expense and Remaining Weighted Average Recognition Period Related to Outstanding Share-Based Awards | As of September 27, 2020, total unrecognized compensation expense and remaining weighted average recognition period related to outstanding share-based awards was as follows: Unrecognized compensation expense Remaining weighted average recognition period Options $ 4,469 2.4 RSUs 13,410 1.9 PSAs 7,793 2.0 RSAs — — Total unrecognized compensation expense at September 27, 2020 $ 25,672 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Estimated Breakage Revenue Recognized (Detail) - Gift Card Revenue [Member] $ in Thousands | 9 Months Ended | |
Sep. 27, 2020USD ($) | ||
Disaggregation Of Revenue [Line Items] | ||
Net gift card liability beginning balance | $ 15,902 | |
Gift cards issued during current period but not redeemed | 2,134 | [1] |
Revenue recognized from beginning liability | (9,031) | |
Net gift card liability ending balance | $ 9,005 | |
[1] | net of estimated breakage |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | Sep. 27, 2020 | Dec. 30, 2019 | Dec. 29, 2019 |
ASU no. 2016-13 [Member] | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Change in accounting principle, ASU, adopted | true | ||
Change in accounting principle, ASU, Adoption Date | Dec. 30, 2019 | ||
Change in accounting principle, ASU, immaterial effect | true | ||
ASU no. 2018-13 [Member] | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Change in accounting principle, ASU, adopted | true | ||
Change in accounting principle, ASU, Adoption Date | Dec. 30, 2019 | ||
Change in accounting principle, ASU, immaterial effect | true | ||
Prepaid Expenses and Other Current Assets [Member] | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Restricted cash related to defined benefit plan forfeitures as well as health and welfare restricted funds | $ 1.5 | $ 1.5 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Liabilities Measured at Fair Value on Recurring Basis (Detail) - Recurring [Member] - USD ($) $ in Thousands | Sep. 27, 2020 | Dec. 29, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Long-term debt | $ 275,000 | $ 538,000 |
Interest rate swap liability | 13,209 | 6,305 |
Total financial liabilities | 288,209 | 544,305 |
Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Long-term debt | 275,000 | 538,000 |
Interest rate swap liability | 13,209 | 6,305 |
Total financial liabilities | $ 288,209 | $ 544,305 |
Long-Term Debt and Finance Le_3
Long-Term Debt and Finance Lease Liabilities - Summary of Long-Term Debt and Finance Lease Liabilities (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 27, 2020 | Dec. 29, 2019 | |
Long Term Debt And Finance Lease Liabilities [Line Items] | ||
Long-term finance lease liabilities | $ 10,704 | $ 11,419 |
Long-term debt and finance lease liabilities | 285,704 | 549,419 |
Senior Lien [Member] | Secured Debt [Member] | $700.0 million Credit Agreement [Member] | ||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||
Long-term debt | $ 275,000 | $ 538,000 |
Debt instrument maturity | Mar. 27, 2023 | |
Debt instrument, Interest Rate | Variable |
Long-Term Debt and Finance Le_4
Long-Term Debt and Finance Lease Liabilities - Summary of Long-Term Debt and Finance Lease Liabilities (Parenthetical) (Detail) | Sep. 27, 2020USD ($) |
Senior Lien [Member] | Secured Debt [Member] | $700.0 million Credit Agreement [Member] | |
Long Term Debt And Finance Lease Liabilities [Line Items] | |
Debt instrument face amount | $ 700,000,000 |
Long-Term Debt and Finance Le_5
Long-Term Debt and Finance Lease Liabilities - Additional Information (Detail) - USD ($) | Mar. 27, 2018 | Sep. 27, 2020 | Sep. 27, 2020 | Sep. 29, 2019 | Dec. 29, 2019 | Apr. 17, 2015 |
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||
Borrowings during the period | $ 187,405,000 | |||||
Amended and Restated Credit Agreement [Member] | ||||||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||
Fixed portion of outstanding debt percentage | 91.00% | |||||
Participation fee | 1.25% | |||||
Issuance fee | 0.125% | |||||
Credit facility termination date | Mar. 27, 2023 | |||||
Borrowings during the period | $ 0 | $ 0 | $ 265,400,000 | |||
Principal payments on the Credit Facility | 176,000,000 | 263,000,000 | 180,400,000 | |||
Borrowings under credit facilities | 275,000,000 | $ 275,000,000 | $ 538,000,000 | |||
Net leverage ratio | 325.00% | |||||
Interest coverage ratio | 175.00% | |||||
Senior Lien [Member] | Secured Debt [Member] | Prime Plus [Member] | ||||||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||
Interest rate spread on base rate | 0.50% | 0.25% | ||||
Senior Lien [Member] | Secured Debt [Member] | Amended and Restated Credit Agreement [Member] | ||||||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||
Letters of credit issued | 34,400,000 | $ 34,400,000 | ||||
Line of credit interest rate terms | LIBOR plus 1.50% per annum or prime plus 0.50%. The interest rate margins are subject to adjustment pursuant to a pricing grid based on the Company’s total net leverage ratio, as set forth in the Amended and Restated Credit Agreement. | |||||
Senior Lien [Member] | Secured Debt [Member] | Amended and Restated Credit Agreement [Member] | LIBOR [Member] | ||||||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||
Interest rate spread on base rate | 1.50% | 1.25% | ||||
Senior Lien [Member] | Secured Debt [Member] | Amended and Restated Credit Agreement [Member] | Minimum [Member] | ||||||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||
Credit facility unused commitment fee percentage | 0.15% | |||||
Senior Lien [Member] | Secured Debt [Member] | Amended and Restated Credit Agreement [Member] | Maximum [Member] | ||||||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||
Credit facility unused commitment fee percentage | 0.30% | |||||
Senior Lien [Member] | Secured Debt [Member] | Amended and Restated Credit Agreement [Member] | Swingline Loan Sub-facility [Member] | ||||||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||
Debt instrument face amount | 15,000,000 | $ 15,000,000 | ||||
Senior Lien [Member] | Secured Debt [Member] | Former Credit Facility [Member] | ||||||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||
Credit facility maximum borrowing capacity | $ 450,000,000 | |||||
Senior Lien [Member] | Secured Debt [Member] | Former Credit Facility [Member] | Amended and Restated Credit Agreement [Member] | ||||||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||
Capitalized debt issuance costs | $ 700,000 | |||||
Senior Lien [Member] | Secured Debt [Member] | $700.0 million Credit Facility [Member] | ||||||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||
Debt instrument face amount | $ 700,000,000 | $ 700,000,000 | ||||
Senior Lien [Member] | Secured Debt [Member] | $700.0 million Credit Facility [Member] | Amended and Restated Credit Agreement [Member] | ||||||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||
Credit facility maximum borrowing capacity | $ 700,000,000 | |||||
Capitalized debt issuance costs | $ 2,100,000 | |||||
Interest expense term | 5 years |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 20.00% | 22.80% | 23.70% | 23.60% |
Income tax benefits resulting from discrete adjustments and return to provision adjustments | $ 5.4 | $ 1 | $ 5.4 | $ 1.7 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Apr. 13, 2010Defendant | Apr. 30, 2016Complaint | Sep. 27, 2020Complaint |
Other Commitments [Line Items] | |||
Number of complaints filed | 4 | ||
Number of individual claimants | 3 | ||
Federal Courts of California [Member] | |||
Other Commitments [Line Items] | |||
Number of complaints filed | 2 | ||
Superior Court of California [Member] | |||
Other Commitments [Line Items] | |||
Number of complaints filed | 1 | ||
Federal Court in District of Colorado [Member] | |||
Other Commitments [Line Items] | |||
Number of complaints filed | 1 | ||
Superior Court of State of California and County of Los Angeles [Member] | |||
Other Commitments [Line Items] | |||
Number of defendants | Defendant | 80 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Common Stock Share Repurchase Programs Authorized by Board of Directors from Time to Time and Related Repurchase Activity and Available Authorized (Detail) - USD ($) | 9 Months Ended | |
Sep. 27, 2020 | Sep. 29, 2019 | |
Equity Class Of Treasury Stock [Line Items] | ||
Cost of repurchases | $ 163,310,000 | |
February 20, 2017 [Member] | ||
Equity Class Of Treasury Stock [Line Items] | ||
Effective date | Feb. 20, 2017 | |
Expiration date | Dec. 31, 2018 | |
Amount authorized | $ 250,000,000 | |
Cost of repurchases | $ 250,000,000 | |
February 20, 2018 [Member] | ||
Equity Class Of Treasury Stock [Line Items] | ||
Effective date | Feb. 20, 2018 | |
Expiration date | Dec. 31, 2019 | |
Amount authorized | $ 350,000,000 | |
Cost of repurchases | $ 308,017,000 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | Sep. 27, 2020shares |
Equity [Abstract] | |
Share repurchase authorization available | 0 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Share Repurchase Activity under Share Repurchase Programs (Detail) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 29, 2019USD ($)$ / sharesshares | |
Equity [Abstract] | |
Number of common shares acquired | shares | 7,302,878 |
Average price per common share acquired | $ / shares | $ 22.36 |
Total cost of common shares acquired | $ | $ 163,310 |
Net Income Per Share - Summary
Net Income Per Share - Summary of Reconciliation of Numerators and Denominators of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Basic net income per share: | ||||
Net income | $ 60,241 | $ 26,260 | $ 219,053 | $ 117,995 |
Weighted average shares outstanding - basic | 117,947 | 118,029 | 117,775 | 119,846 |
Basic net income per share | $ 0.51 | $ 0.22 | $ 1.86 | $ 0.98 |
Diluted net income per share: | ||||
Net income | $ 60,241 | $ 26,260 | $ 219,053 | $ 117,995 |
Weighted average shares outstanding - basic | 117,947 | 118,029 | 117,775 | 119,846 |
Dilutive effect of share-based awards: | ||||
Assumed exercise of options to purchase shares | 160 | 32 | 14 | 62 |
Weighted average shares and equivalent shares outstanding | 118,450 | 118,174 | 118,157 | 120,227 |
Diluted net income per share | $ 0.51 | $ 0.22 | $ 1.85 | $ 0.98 |
RSUs [Member] | ||||
Dilutive effect of share-based awards: | ||||
Dilutive effect | 318 | 42 | 315 | 167 |
RSAs [Member] | ||||
Dilutive effect of share-based awards: | ||||
Dilutive effect | 25 | 12 | 58 | |
PSAs [Member] | ||||
Dilutive effect of share-based awards: | ||||
Dilutive effect | 25 | 46 | 41 | 94 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Stock option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities | 0.2 | 0.6 | 0.2 | 0.6 |
RSUs [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities | 0.4 | 0.1 | 0.3 | |
PSAs [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities | 0.3 | 0.1 | 0.3 | 0.4 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) | 9 Months Ended | ||
Sep. 27, 2020USD ($)Swap | Dec. 29, 2019USD ($)Swap | Dec. 31, 2017Hedge | |
Derivative [Line Items] | |||
Derivative, cash flow swaps length period | 1 year | ||
Cash flow swaps mature annually, starting year | 2020 | ||
Cash flow swaps mature annually, ending year | 2022 | ||
Cash Flow Hedges [Member] | |||
Derivative [Line Items] | |||
Interest rate swaps hedge ineffectiveness | 0.00% | ||
Swaps [Member] | |||
Derivative [Line Items] | |||
Derivative, notional amount of outstanding swaps | $ | $ 250,000,000 | $ 250,000,000 | |
Forward Contract [Member] | |||
Derivative [Line Items] | |||
Derivative, number of cash flow hedges | Hedge | 3 | ||
Number of outstanding swaps | Swap | 3 | 3 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Summary of Fair Value of Derivative Instruments (Detail) - Derivatives Designated as Hedging Instruments [Member] - Swaps [Member] - USD ($) $ in Thousands | Sep. 27, 2020 | Dec. 29, 2019 |
Accrued Liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Liability Derivatives, Fair Value | $ 1,848 | $ 1,736 |
Other Long-term Liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Liability Derivatives, Fair Value | $ 11,361 | $ 4,569 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Summary of Losses (Gains) of Derivative Instruments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Interest Expense (Income), Net [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Loss / (Gain) on Derivative Instruments,net of tax | $ 1,345 | $ (54) | $ 2,855 | $ (458) |
Comprehensive Income - Changes
Comprehensive Income - Changes In Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | $ 743,277 | $ 531,649 | $ 581,952 | $ 589,196 |
Other comprehensive income (loss), net of tax | ||||
Unrealized loss on cash flow hedging activities, net of income tax | 755 | (1,056) | (4,802) | (6,769) |
Total other comprehensive income/(loss) | 755 | (1,056) | (4,802) | (6,769) |
Ending Balance | 807,946 | 559,921 | 807,946 | 559,921 |
Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (4,682) | 1,134 | ||
Other comprehensive income (loss), net of tax | ||||
Unrealized loss on cash flow hedging activities, net of income tax | (4,802) | (6,769) | ||
Total other comprehensive income/(loss) | (4,802) | (6,769) | ||
Ending Balance | $ (9,484) | $ (5,635) | $ (9,484) | $ (5,635) |
Comprehensive Income - Change_2
Comprehensive Income - Changes In Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Income tax expenses (Benefit) on cash flow hedging activities | $ 261 | $ (365) | $ (1,661) | $ (2,341) |
Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Income tax expenses (Benefit) on cash flow hedging activities | $ (1,661) | $ (2,341) |
Segments - Additional Informati
Segments - Additional Information (Detail) | 9 Months Ended |
Sep. 27, 2020Segment | |
Segment Reporting [Abstract] | |
Number of reportable segment | 1 |
Number of operating segment | 1 |
Segments - Summary of Disaggreg
Segments - Summary of Disaggregation of Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Disaggregation Of Revenue [Line Items] | ||||
Net Sales, amount | $ 1,577,598 | $ 1,440,222 | $ 4,866,925 | $ 4,269,844 |
Sales Revenue, Goods, Net [Member] | Product Concentration Risk [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Sales, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Perishables [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Sales, amount | $ 918,860 | $ 844,553 | $ 2,782,084 | $ 2,479,091 |
Perishables [Member] | Sales Revenue, Goods, Net [Member] | Product Concentration Risk [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Sales, percentage | 58.20% | 58.60% | 57.20% | 58.10% |
Non-Perishables [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Sales, amount | $ 658,738 | $ 595,669 | $ 2,084,841 | $ 1,790,753 |
Non-Perishables [Member] | Sales Revenue, Goods, Net [Member] | Product Concentration Risk [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Sales, percentage | 41.80% | 41.40% | 42.80% | 41.90% |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock-Based Compensation Awards Granted (Detail) - 2013 Incentive Plan [Member] | 9 Months Ended |
Sep. 27, 2020$ / sharesshares | |
RSUs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of common stock | 587,572 |
Weighted-average grant date fair value | $ / shares | $ 18.01 |
PSAs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of common stock | 192,053 |
Weighted-average grant date fair value | $ / shares | $ 17.26 |
Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of common stock | 1,085,528 |
Weighted-average grant date fair value | $ / shares | $ 4.94 |
Weighted-average exercise price | $ / shares | $ 16.71 |
March 9, 2020 [Member] | RSUs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of common stock | 485,367 |
March 9, 2020 [Member] | PSAs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of common stock | 174,902 |
March 9, 2020 [Member] | Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of common stock | 1,055,907 |
May 12, 2020 [Member] | RSUs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of common stock | 66,550 |
May 12, 2020 [Member] | PSAs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of common stock | 11,389 |
May 12, 2020 [Member] | Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of common stock | 15,569 |
August 10, 2020 [Member] | RSUs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of common stock | 35,655 |
August 10, 2020 [Member] | PSAs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of common stock | 5,762 |
August 10, 2020 [Member] | Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of common stock | 14,052 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 31, 2018 | Mar. 31, 2017 | Sep. 27, 2020 | Sep. 29, 2019 | Dec. 29, 2019 | Jan. 01, 2017 | Jan. 03, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Proceeds from exercise of stock options | $ 1,343 | $ 4,483 | |||||
RSUs [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares, outstanding | 914,000 | 774,000 | |||||
RSUs [Member] | Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 2 years | ||||||
RSUs [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
PSAs [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares, outstanding | 315,000 | 225,000 | |||||
PSAs [Member] | March 2017 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance stock awards description | The criteria was based on a range of performance targets in which grantees could earn between 10% and 150% of the base number of awards granted. | ||||||
Awards vested | 35,697 | ||||||
Number of shares, outstanding | 0 | ||||||
PSAs [Member] | March 2018 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance stock awards description | The criteria is based on a range of performance targets in which grantees may earn 0% to 200% of the base number of awards granted. | ||||||
PSAs [Member] | 2019 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance stock awards description | The criteria is based on a range of performance targets in which grantees may earn 0% to 200% of the base number of awards granted. | ||||||
PSAs [Member] | 2020 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance stock awards description | The criteria is based on a range of performance targets in which grantees may earn 0% to 200% of the base number of awards granted. | ||||||
PSAs [Member] | Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance stock awards payout percentage of shares granted | 0.00% | 0.00% | 0.00% | ||||
PSAs [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance stock awards payout percentage of shares granted | 200.00% | 200.00% | 200.00% | ||||
RSAs [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Awards vested | 55,053 | ||||||
Number of shares, outstanding | 0 | 55,000 | |||||
Second Anniversary [Member] | Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Second Anniversary [Member] | PSAs [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance stock awards vesting percentage | 50.00% | ||||||
Third Anniversary [Member] | Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Third Anniversary [Member] | PSAs [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance stock awards vesting percentage | 50.00% | ||||||
Option One | PSAs [Member] | Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance stock awards payout percentage of shares granted | 10.00% | ||||||
Option One | PSAs [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance stock awards payout percentage of shares granted | 150.00% | ||||||
2013 Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized for issuance under plan | 10,089,072 | ||||||
Stock awards outstanding | 2,559,249 | ||||||
Remaining shares available for issuance | 4,522,005 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Share-Based Compensation Expense in Selling, General and Administrative Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2020 | Sep. 29, 2019 | Sep. 27, 2020 | Sep. 29, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Share-based compensation expense before income taxes | $ 3,673 | $ 2,710 | $ 10,400 | $ 6,901 |
Income tax benefit | (663) | (697) | (2,011) | (1,647) |
Net share-based compensation expense | $ 3,010 | $ 2,013 | $ 8,389 | $ 5,254 |
Share-Based Compensation - Su_3
Share-Based Compensation - Summary of Outstanding Share-Based Awards (Detail) - shares | Sep. 27, 2020 | Sep. 29, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vested options, outstanding | 235,000 | 578,000 |
Unvested options, outstanding | 1,095,000 | 64,000 |
RSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based awards other than options, outstanding | 914,000 | 774,000 |
PSAs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based awards other than options, outstanding | 315,000 | 225,000 |
RSAs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based awards other than options, outstanding | 0 | 55,000 |
Share-Based Compensation - Su_4
Share-Based Compensation - Summary of Total Unrecognized Compensation Expense and Remaining Weighted Average Recognition Period Related to Outstanding Share-Based Awards (Detail) $ in Thousands | 9 Months Ended |
Sep. 27, 2020USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation expense at September 27, 2020 | $ 25,672 |
Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense related to outstanding options | $ 4,469 |
Remaining weighted average recognition period | 2 years 4 months 24 days |
RSUs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense related to outstanding equity-based awards other than options | $ 13,410 |
Remaining weighted average recognition period | 1 year 10 months 24 days |
PSAs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense related to outstanding equity-based awards other than options | $ 7,793 |
Remaining weighted average recognition period | 2 years |