Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 03, 2021 | Feb. 23, 2021 | Jun. 26, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 3, 2021 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SFM | ||
Entity Registrant Name | Sprouts Farmers Market, Inc. | ||
Entity Central Index Key | 0001575515 | ||
Current Fiscal Year End Date | --01-03 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 117,953,435 | ||
Entity Public Float | $ 2,915,586,804 | ||
Title of 12(b) Security | Common Stock, $0.001 par value | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes | ||
Entity File Number | 001-36029 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 32-0331600 | ||
Entity Address, Address Line One | 5455 East High Street | ||
Entity Address, Address Line Two | Suite 111 | ||
Entity Address, City or Town | Phoenix | ||
Entity Address, State or Province | AZ | ||
Entity Address, Postal Zip Code | 85054 | ||
City Area Code | 480 | ||
Local Phone Number | 814-8016 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
ICFR Auditor Attestation Flag | true | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement for its 2021 Annual Meeting of Stockholders are incorporated by reference in Part III of this Annual Report on Form 10-K where indicated. Such Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended January 3, 2021. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 169,697 | $ 85,314 |
Accounts receivable, net | 14,815 | 15,713 |
Inventories | 254,224 | 275,979 |
Prepaid expenses and other current assets | 27,224 | 10,833 |
Total current assets | 465,960 | 387,839 |
Property and equipment, net of accumulated depreciation | 726,500 | 741,508 |
Operating lease assets, net | 1,045,408 | 1,028,436 |
Intangible assets, net of accumulated amortization | 184,960 | 185,395 |
Goodwill | 368,878 | 368,078 |
Other assets | 14,698 | 11,727 |
Total assets | 2,806,404 | 2,722,983 |
Current liabilities: | ||
Accounts payable | 139,337 | 122,839 |
Accrued liabilities | 143,402 | 136,482 |
Accrued salaries and benefits | 76,695 | 48,579 |
Accrued income tax | 2,005 | |
Current portion of operating lease liabilities | 135,739 | 106,153 |
Current portion of finance lease liabilities | 959 | 754 |
Total current liabilities | 496,132 | 416,812 |
Long-term operating lease liabilities | 1,069,535 | 1,078,927 |
Long-term debt and finance lease liabilities | 260,459 | 549,419 |
Other long-term liabilities | 40,912 | 41,517 |
Deferred income tax liability | 58,073 | 54,356 |
Total liabilities | 1,925,111 | 2,141,031 |
Commitments and contingencies (Note 19) | ||
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, 117,953,435 shares issued and outstanding, January 3, 2021; 117,543,668 shares issued and outstanding, December 29, 2019 | 118 | 117 |
Additional paid-in capital | 686,648 | 670,966 |
Accumulated other comprehensive loss | (8,474) | (4,682) |
Retained earnings (Accumulated deficit) | 203,001 | (84,449) |
Total stockholders’ equity | 881,293 | 581,952 |
Total liabilities and stockholders’ equity | $ 2,806,404 | $ 2,722,983 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 03, 2021 | 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 | 117,953,435 | 117,543,668 |
Common stock, shares outstanding | 117,953,435 | 117,543,668 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Income Statement [Abstract] | |||
Net sales | $ 6,468,759 | $ 5,634,835 | $ 5,207,336 |
Cost of sales | 4,089,470 | 3,740,017 | 3,459,861 |
Gross profit | 2,379,289 | 1,894,818 | 1,747,475 |
Selling, general and administrative expenses | 1,863,869 | 1,549,707 | 1,404,443 |
Depreciation and amortization (exclusive of depreciation included in cost of sales) | 124,124 | 120,491 | 108,045 |
Store closure and other costs, net | (369) | 7,260 | 12,076 |
Income from operations | 391,665 | 217,360 | 222,911 |
Interest expense, net | 14,787 | 21,192 | 27,435 |
Other income | 320 | ||
Income before income taxes | 376,878 | 196,168 | 195,796 |
Income tax provision | 89,428 | 46,539 | 37,260 |
Net income | $ 287,450 | $ 149,629 | $ 158,536 |
Net income per share: | |||
Basic | $ 2.44 | $ 1.25 | $ 1.23 |
Diluted | $ 2.43 | $ 1.25 | $ 1.22 |
Weighted average shares outstanding: | |||
Basic | 117,821 | 119,368 | 128,827 |
Diluted | 118,224 | 119,742 | 129,776 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 287,450 | $ 149,629 | $ 158,536 |
Other comprehensive income (loss), net of tax | |||
Unrealized gains (losses) on cash flow hedging activities, net of income tax of ($205), ($2,078), and $561 | (592) | (6,006) | 1,624 |
Reclassification of net gains (losses) on cash flow hedges to net income, net of income tax of ($1,107), $66, and $102 | (3,200) | 190 | 294 |
Total other comprehensive income (loss) | (3,792) | (5,816) | 1,918 |
Comprehensive income | $ 283,658 | $ 143,813 | $ 160,454 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Income tax expenses (Benefit) on cash flow hedging activities | $ (205) | $ (2,078) | $ 561 |
Income tax expenses (Benefit) for reclassification of net gains (losses) on cash flow hedges | $ (1,107) | $ 66 | $ 102 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - 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. 31, 2017 | $ 650,694 | $ 132 | $ 620,788 | $ 30,558 | $ (784) | ||
Beginning Balance, Shares at Dec. 31, 2017 | 132,450,092 | ||||||
Net income | 158,536 | 158,536 | |||||
Other comprehensive income (loss) | 1,918 | 1,918 | |||||
Issuance of shares under stock plans | $ 21,843 | $ 3 | 21,840 | ||||
Issuance of shares under stock plans, Shares | 2,824,460 | 3,227,693 | |||||
Repurchase and retirement of common stock | $ (258,307) | $ (11) | (258,296) | ||||
Repurchase and retirement of common stock, Shares | (11,096,595) | ||||||
Share-based compensation | 14,512 | 14,512 | |||||
Ending Balance at Dec. 30, 2018 | 589,196 | $ 124 | 657,140 | (69,202) | 1,134 | ||
Ending Balance, Shares at Dec. 30, 2018 | 124,581,190 | ||||||
Net income | 149,629 | 149,629 | |||||
Other comprehensive income (loss) | (5,816) | (5,816) | |||||
Issuance of shares under stock plans | $ 4,878 | $ 1 | 4,877 | ||||
Issuance of shares under stock plans, Shares | 316,493 | 822,586 | |||||
Repurchase and retirement of common stock | $ (176,310) | $ (8) | (176,302) | ||||
Repurchase and retirement of common stock, Shares | (7,950,858) | (7,950,858) | |||||
Share-based compensation | $ 8,949 | 8,949 | |||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | ||||||
Ending Balance at Dec. 29, 2019 | $ 581,952 | $ 11,426 | $ 117 | 670,966 | (84,449) | $ 11,426 | (4,682) |
Ending Balance, Shares at Dec. 29, 2019 | 117,452,918 | ||||||
Net income | 287,450 | 287,450 | |||||
Other comprehensive income (loss) | (3,792) | (3,792) | |||||
Issuance of shares under stock plans | $ 1,344 | $ 1 | 1,343 | ||||
Issuance of shares under stock plans, Shares | 59,561 | 500,517 | |||||
Repurchase and retirement of common stock, Shares | 0 | ||||||
Share-based compensation | $ 14,339 | 14,339 | |||||
Ending Balance at Jan. 03, 2021 | $ 881,293 | $ 118 | $ 686,648 | $ 203,001 | $ (8,474) | ||
Ending Balance, Shares at Jan. 03, 2021 | 117,953,435 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Cash flows from operating activities | |||
Net income | $ 287,450 | $ 149,629 | $ 158,536 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 126,507 | 122,804 | 110,749 |
Operating lease asset amortization | 99,276 | 81,842 | |
Store closure and other costs, net | (321) | 4,113 | 4,115 |
Share-based compensation | 14,339 | 8,949 | 14,512 |
Deferred income taxes | 3,717 | (216) | 23,333 |
Other non-cash items | 3,683 | 4,136 | 1,482 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 25,977 | 36,062 | (7,666) |
Inventories | 21,754 | (11,612) | (34,824) |
Prepaid expenses and other current assets | (14,970) | 19,208 | (2,908) |
Other assets | (5,461) | (1,275) | (5,086) |
Accounts payable | 20,184 | 9,420 | 12,238 |
Accrued liabilities | 4,296 | 17,274 | (4,481) |
Accrued salaries and benefits | 28,116 | 295 | 3,039 |
Accrued income tax | (2,005) | 2,005 | (3,391) |
Operating lease liabilities | (120,085) | (88,002) | |
Other long-term liabilities | 1,578 | 578 | 24,731 |
Cash flows from operating activities | 494,035 | 355,210 | 294,379 |
Cash flows from investing activities | |||
Purchases of property and equipment | (121,968) | (183,232) | (177,082) |
Cash flows used in investing activities | (121,968) | (183,232) | (177,082) |
Cash flows from financing activities | |||
Proceeds from revolving credit facilities | 265,405 | 233,000 | |
Payments on revolving credit facilities | (288,000) | (180,405) | (128,000) |
Payments on capital and financing lease obligations | (4,517) | ||
Payments on finance lease liabilities | (754) | (690) | |
Payments of deferred financing costs | (2,131) | ||
Cash from landlord related to capital and financing lease obligations | 3,643 | ||
Repurchase of common stock | (176,310) | (258,307) | |
Proceeds from exercise of stock options | 1,343 | 4,878 | 21,843 |
Other | (319) | (59) | |
Cash flows used in financing activities | (287,411) | (87,441) | (134,528) |
Increase / (Decrease) in cash, cash equivalents, and restricted cash | 84,656 | 84,537 | (17,231) |
Cash, cash equivalents, and restricted cash at beginning of the period | 86,785 | 2,248 | 19,479 |
Cash, cash equivalents, and restricted cash at the end of the period | 171,441 | 86,785 | 2,248 |
Supplemental disclosure of cash flow information | |||
Cash paid for interest | 14,786 | 20,293 | 27,086 |
Cash paid for income taxes | 94,767 | 44,637 | 15,527 |
Leased assets obtained in exchange for new operating lease liabilities | 118,075 | 160,134 | |
Supplemental disclosure of non-cash investing and financing activities | |||
Property and equipment in accounts payable | $ 10,869 | $ 18,515 | 12,001 |
Property acquired through capital and financing lease obligations | $ 9,081 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Jan. 03, 2021 | |
Accounting Policies [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business Sprouts Farmers Market, Inc., a Delaware corporation, through its subsidiaries, offers a unique grocery experience featuring an open layout with fresh produce at the heart of the store. The Company continues to bring the latest in wholesome, innovative products made with lifestyle-friendly ingredients such as organic, plant-based and gluten-free. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Jan. 03, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 2. Basis of Presentation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All material intercompany accounts and transactions have been eliminated in consolidation. The Company has one reportable and one operating segment, healthy grocery stores. 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. The following is a breakdown of the Company’s perishable and non-perishable sales mix: 2020 2019 2018 Perishables 57.2 % 57.7 % 57.5 % Non-Perishables 42.8 % 42.3 % 42.5 % All dollar amounts are in thousands, unless otherwise indicated. Certain prior period amounts have been reclassified to conform with the current year presentation. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Jan. 03, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 3. Significant Accounting Policies 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. Fiscal year 2020 ended on January 3, 2021 and included 53-weeks 52-weeks 52-weeks Significant Accounting Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. Such estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company’s critical accounting estimates include inventory valuations, lease assumptions, self-insurance reserves, impairment of long-lived assets, fair values of share-based awards, and income taxes. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all highly liquid instruments with an original maturity of three months or less to be cash equivalents. The Company’s cash and cash equivalents are maintained at financial institutions in the United States of America. Deposits in transit include sales through the end of the period, the majority of which were paid with credit and debit cards and settle within a few days of the sales transactions. The amounts due from banks for these transactions at each reporting date were as follows: As Of January 3, 2021 December 29, 2019 Due from banks for debit and credit card transactions $ 93,130 $ 49,405 Restricted Cash Restricted cash relates to the Company’s defined benefit plan forfeitures and the Company’s healthcare, general liability and workers’ compensation plan benefits of approximately $1.7 million and $1.5 million as of January 3, 2021 and December 29, 2019, respectively, and is included in prepaid expenses and other current assets in the accompanying consolidated balance sheets. Accounts Receivable Accounts receivable primarily represents billings to vendors for scan, advertising and other rebates, and billings to landlords for tenant allowances. Accounts receivable also includes receivables from the Company’s insurance carrier for payments expected to be made in excess of self-insured retentions. The Company provides an allowance for doubtful accounts when a specific account is determined to be uncollectible. Inventories Inventories consist of merchandise purchased for resale, which are stated at the lower of cost or net realizable value. The cost method is used for distribution center and store perishable department inventories by assigning costs to each of these items based on a first-in, first-out (FIFO) basis (net of vendor discounts). The Company’s non-perishable inventory is valued at the lower of cost or net realizable value using weighted averaging, the use of which approximates the FIFO method. The Company believes that all inventories are saleable and no allowances or reserves for obsolescence were recorded as of January 3, 2021 and December 29, 2019. Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation and amortization. Expenditures for major additions and improvements to facilities are capitalized, while maintenance and repairs are charged to expense as incurred. When property is retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of income. Depreciation expense, which includes the amortization of assets recorded as finance leases, is computed using the straight-line method over the estimated useful lives of the individual assets. Terms of leases used in the determination of estimated useful lives may include renewal options if the exercise of the renewal option is determined to be reasonably certain. The following table includes the estimated useful lives of certain of the Company’s asset classes: Computer hardware and software 3 to 5 years Furniture, fixtures and equipment 7 to 20 years Leasehold improvements up Buildings 40 years Store development costs, which include costs associated with the selection and procurement of real estate sites, are also included in property and equipment. These costs are included in leasehold improvements and are amortized over the remaining lease term of the successful sites with which they are associated. Self-Insurance Reserves The Company uses a combination of insurance and self-insurance programs to provide for costs associated with general liability, workers’ compensation and team member health benefits. Liabilities for self-insurance reserves are estimated based on independent actuarial estimates, which are based on historical information and assumptions about future events. The Company utilizes various techniques, including analysis of historical trends and actuarial valuation methods, to estimate the cost to settle reported claims and claims incurred but not yet reported as of the balance sheet date. The actuarial valuation methods consider loss development factors, which include the development time frame and expected claim reporting and settlement patterns, and expected loss costs, which include the expected frequency and severity of claim activity. Amounts expected to be recovered from insurance companies are included in the liability, with a corresponding amount recorded in accounts receivable. Goodwill and Intangible Assets Goodwill represents the cost of acquired businesses in excess of the fair value of assets and liabilities acquired. The Company’s indefinite-lived intangible assets consist of trade names related to “Sprouts Farmers Market” and liquor licenses. The Company also holds intangible assets with finite useful lives consisting of the “Sunflower Farmers Market” trade name. The trade name related to “Sunflower Farmers Market” meets the definition of a defensive intangible asset and was amortized on a straight-line basis over an estimated useful life of 10 years from the date of its acquisition by the Company. Goodwill and indefinite-lived intangible assets are evaluated for impairment on an annual basis during the fourth fiscal quarter, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company’s impairment evaluation of goodwill consists of a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company’s qualitative assessment considered factors including changes in the competitive market, budget-to-actual performance, trends in market capitalization for the Company and its peers, turnover in key management personnel and overall changes in macroeconomic environment. If this qualitative assessment indicates it is more likely than not that the estimated fair value of a reporting unit exceeds its carrying value, no further analysis is required and goodwill is not impaired. Otherwise, we compare the estimated fair value of the asset to its carrying amount with an impairment loss recognized for the amount, if any, by which carrying value exceeds estimated fair value. The impairment evaluation for the Company’s indefinite-lived intangible assets consists of a qualitative assessment similar to that for goodwill. If the qualitative assessment indicates it is more likely than not that the estimated fair value of an indefinite-lived intangible asset exceeds its carrying value, no further analysis is required and the asset is not impaired. Otherwise, the Company compares the estimated fair value of the asset to its carrying amount with an impairment loss recognized for the amount, if any, by which carrying value exceeds estimated fair value. The Company has determined its business consists of a single reporting unit, healthy grocery stores. The Company has had no goodwill impairment charges for the past three fiscal years. See Note 8 , “Intangible Assets” and Note 9 , “Goodwill” for further discussion. Impairment of Long-Lived Assets The Company assesses its long-lived assets, including property and equipment, right-of-use assets and finite-lived intangible assets, for potential impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. These events primarily include current period losses combined with a history of losses or a projection of continuing losses, a significant decrease in the market value of an asset or a decision to close or relocate a store. The Company groups and evaluates long-lived assets for impairment at the individual store level, which is the lowest level at which independent identifiable cash flows are available. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset group to the future undiscounted cash flows expected to be generated by that asset group. The Company’s impairment analysis contains management assumptions about key variables including sales growth rate, gross margin, payroll and other controllable expenses. If impairment is indicated, a loss is recognized for any excess of the carrying value over the estimated fair value of the asset group. The fair value of the asset group is estimated based on the discounted future cash flows using a discount rate commensurate with the related risk or comparable market values, if available. I Deferred Financing Costs The Company capitalizes certain fees and costs incurred in connection with the issuance of debt. Deferred financing costs are amortized to interest expense over the term of the debt using the effective interest method. For the Amended and Restated Credit Agreement and Former Credit Facility (as defined in Note 13, “Long-Term Debt and Finance Lease Liabilities”), deferred financing costs are amortized on a straight-line basis over the term of the facility. Upon prepayment, redemption or conversion of debt, the Company accelerates the recognition of an appropriate amount of financing costs as loss on extinguishment of debt. The current and noncurrent portions of deferred financing costs are included in prepaid expenses and other current assets and other assets, respectively, in the accompanying consolidated balance sheets. Leases The Company leases all stores, distribution centers, and administrative offices. The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease assets, current portion of operating lease liabilities and noncurrent portion of operating lease liabilities in the accompanying consolidated balance sheets. Finance leases are included in property, plant, equipment, net, current portion of finance lease liabilities, and long-term debt and finance lease liabilities in the accompanying consolidated balance sheets. Operating lease payments are charged on a straight-line basis to rent expense, a component of selling, general and administrative expenses, over the lease term and finance lease payments are charged to interest expense and depreciation and amortization expense using a debt model over the lease term. The Company’s lease assets represent a right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease assets and liabilities and the related rent expense are recognized at the lease commencement date (date on which the Company gains access to the property) based on the estimated present value of lease payments over the lease term, net of landlord allowances expected to be received. The Company accounts for the lease and non-lease components as a single lease component for all current classes of leases. Most of the Company’s lease agreements include variable payments related to pass-through costs for maintenance, taxes, and insurance. Additionally, some of the Company’s lease agreements include rental payments based on a percentage of retail sales over contractual levels. These variable payments are not included in the measurement of the lease liability or asset and are expensed as incurred. As most of the Company’s lease agreements do not provide an implicit rate, the Company uses an estimated incremental borrowing rate, which is derived from third-party information available at the lease commencement date, in determining the present value of lease payments. The rate used is for a secured borrowing of a similar term as the lease. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to twenty years or more. The exercise of lease renewal options is at the Company’s sole discretion. The lease term includes the initial contractual term as well as any options to extend the lease when it is reasonably certain that the Company will exercise that option. Leases with a term of 12 months or less (“short-term leases”) are not recorded on the balance sheet. The Company does not currently have any material short-term leases. Additionally, the Company’s lease agreements do not contain any residual value guarantees or material restrictive covenants. The Company subleases certain real estate to third parties, which have all been classified as operating leases. The Company recognized sublease income on a straight-line basis. Fair Value Measurements The Company records its financial assets and liabilities in accordance with the framework for measuring fair value in accordance with ASC 820. This framework establishes a three-level 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. Impairment losses related to store-level assets are calculated using significant unobservable inputs including the present value of future cash flows expected to be generated using a risk-adjusted market based weighted-average cost of capital, comparable store sales growth assumptions, and third party property appraisal data. Therefore, these inputs are classified as a level 3 measurement in the fair value hierarchy. Cash, cash equivalents and restricted cash, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued salaries and benefits and other accrued liabilities approximate fair value because of the short maturity of those instruments. Derivative Financial Instruments The Company records derivatives at fair value. The designation of a derivative instrument as a hedge and its ability to meet the hedge accounting criteria determine how the Company reflects the change in fair value of the derivative instrument in its financial statements. A derivative qualifies for hedge accounting if, at inception, the derivative is expected to be highly effective in offsetting the underlying hedged cash flows , and the Company fulfill s the hedge documentation standards at the time it enter s into the derivative contract. The Company designate s its hedge based on the exposure it is hedging. For qualifying cash flow hedges, the Company record s changes in fair value in other comprehensive income ( “ OCI ” ). The Company release s the derivative’s gain or loss from OCI to match the timing of the underlying hedged item’s effect on earnings. The Company reviews the effectiveness of its hedging instruments quarterly. The Company recognizes changes in the fair value for derivatives not designated as hedges or those not qualifying for hedge accounting in current period earnings. The Company discontinues hedge accounting for any hedge that is no longer evaluated to be highly effective. The Company does not enter into derivative financial instruments for trading or speculative purposes, and it monitors the financial stability and credit standing of its counterparties in these transactions. Share-Based Compensation The Company measures share-based compensation cost at the grant date based on the fair value of the award and recognizes share-based compensation cost as expense over the vesting period. As share-based compensation expense recognized in the consolidated statements of income is based on awards ultimately expected to vest, the amount of expense has been reduced for actual forfeitures as they occur. The Company uses the Black-Scholes option-pricing model to determine the grant date fair value for each option grant. The Black-Scholes option-pricing model requires extensive use of subjective assumptions. See Note 26, “Share-Based Compensation” for a discussion of assumptions used in the calculation of fair values. Application of alternative assumptions could produce different estimates of the fair value of share-based compensation and, consequently, the related amounts recognized in the accompanying consolidated statements of income. The grant date fair value of restricted stock units (“RSUs”), performance share awards (“PSAs”), and restricted stock awards (“RSAs”) is based on the closing price per share of the Company’s stock on the grant date. The Company recognizes compensation expense for time-based awards on a straight-line basis and for performance-based awards on the graded-vesting method over the vesting period of the awards. 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 as of December 29, 2019 Gift Cards Issued During Current Period But Not Redeemed (a) Revenue Recognized From Beginning Liability Balance as of January 3, 2021 Gift card liability, net $ 15,902 $ 9,895 $ (9,909 ) $ 15,888 (a) The nature of goods the Company transfers to customers at the point of sale are inventories, consisting of merchandise purchased for resale. 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, any contract performance obligations, or any material costs to obtain or fulfill a contract as of January 3, 2021. Cost of Sales Cost of sales includes the cost of inventory sold during the period, including the direct costs of purchased merchandise (net of discounts and allowances), distribution and supply chain costs, supplies and depreciation and amortization for distribution centers and supply chain related assets. The Company recognizes vendor allowances and merchandise volume related rebate allowances as a reduction of inventories during the period when earned and reflects the allowances as a component of cost of sales as the inventory is sold. The Company’s largest supplier accounted for approximately 42%, 40% and 34% of total purchases during 2020, 2019, and 2018, respectively. Selling, General and Administrative Expenses Selling, general and administrative expenses primarily consist of salaries, wages and benefits costs, share-based compensation, occupancy costs (including rent, property taxes, utilities, common area maintenance and insurance), advertising costs, buying cost, pre-opening and other administrative costs. The Company charges certain vendors to place advertisements in the Company’s in-store guide and circulars under a cooperative advertising program. The Company records rebates received from vendors in connection with cooperative advertising programs as a reduction to advertising costs when the allowance represents a reimbursement of a specific incremental and identifiable cost. Advertising costs are expensed as incurred. Advertising expense, net of rebates, was $54.4 million, $57.2 million and $50.2 million for 2020, 2019, and 2018, respectively. Depreciation and amortization Depreciation and amortization expense (exclusive of depreciation included in cost of sales) primarily consists of depreciation and amortization for buildings, store leasehold improvements, and equipment. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company’s deferred tax assets are subject to periodic recoverability assessments. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that more likely than not will be realized. Realization of the deferred tax assets is principally dependent upon achievement of projected future taxable income offset by deferred tax liabilities. Changes in recognition or measurement are reflected in the period in which the judgment occurs. 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. The Company recognizes the effect of uncertain income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits as part of income tax expense. Share Repurchases The Company has elected to retire shares repurchased to date. Shares retired become part of the pool of authorized but unissued shares. The Company has elected to record purchase price of the retired shares in excess of par value directly as a reduction of retained earnings. Net Income per Share Basic net income per share is calculated by dividing net income by the weighted average number of shares outstanding during the fiscal period. Diluted net income per share is based on the weighted average number of shares outstanding, plus, where applicable, shares that would have been outstanding related to dilutive options, PSAs, RSAs, and RSUs. Comprehensive Income Comprehensive income consists of net income and the unrealized gains or losses on derivative instruments that qualify for and have been designated as cash flow hedges, for all periods presented. 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 on the Company’s consolidated financial statements 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. Leases In February 2016, the FASB issued ASU No. 2016-02, “Leases (ASC 842).” ASU No. 2016-02 requires lessees to recognize a right-of-use asset and corresponding lease liability for all leases with terms greater than twelve months. Recognition, measurement and presentation of expenses will depend on classification as a financing or operating lease. The Company adopted the standard as of December 31, 2018, the first day of fiscal year 2019. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, permits companies not to reassess prior conclusions on lease identification, lease classification and initial direct costs. The Company did not elect the hindsight practical expedient. The adoption of the standard resulted in the recognition of operating lease assets and liabilities of approximately $1.0 billion and $1.1 billion, respectively, as of December 31, 2018, including recognition of operating lease assets and liabilities for certain third-party operated distribution center locations. Included in the measurement of the new lease assets and liabilities is the reclassification of balances historically recorded as deferred rent and unfavorable and favorable leasehold interests. Additionally, the Company recognized a cumulative effect adjustment, which increased retained earnings by $ 11.4 million, net of tax. This adjustment was driven by the derecognition of approximately $ 114.0 million of lease obligations and $ 102.6 million of net assets related to leases that had been classified as financing lease obligations under the former failed-sale leaseback guidance, and are now classified as operating leases as of the transition date. This reclassification also resulted in the recognition of rent expense beginning December 31, 2018, which was previously reported as interest expense under the former failed sale-leaseback guidance. Lastly, the adoption of this standard resulted in a change in naming convention for leases classified historically as capital leases. These leases are now referred to as finance leases. The adoption of this standard did not have any impact on the Company’s liquidity or cash flows. Refer to Note 7, “Leases”, for additional information related to the Company’s leases. 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 year ending January 3, 2021. 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 fiscal 2020 had, or are expected to have, a material impact on the Company’s consolidated financial statements. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Jan. 03, 2021 | |
Receivables [Abstract] | |
Accounts Receivable | 4. Accounts Receivable A summary of accounts receivable is as follows: As Of January 3, 2021 December 29, 2019 Landlords $ 4,715 $ 7,565 Vendors 3,275 5,378 Insurance 1,279 938 Supply rebates — 749 Other 5,546 1,083 Total $ 14,815 $ 15,713 The Company recorded allowances for certain vendor receivables of $0.4 million and $0.5 million at January 3, 2021 and December 29, 2019, respectively. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Jan. 03, 2021 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | 5. Prepaid Expenses and Other Current Assets A summary of prepaid expenses and other current assets is as follows: As Of January 3, 2021 December 29, 2019 Prepaid expenses $ 15,948 $ 8,784 Restricted cash 1,744 1,470 Prepaid rent 141 15 Income tax receivable 8,827 — Other current assets 564 564 Total $ 27,224 $ 10,833 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jan. 03, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 6. Property and Equipment A summary of property and equipment, net is as follows: As Of January 3, 2021 December 29, 2019 Land and finance lease assets $ 15,753 $ 15,753 Furniture, fixtures and equipment 745,514 666,050 Leasehold improvements 638,149 589,211 Construction in progress 27,140 48,311 Total property and equipment 1,426,556 1,319,325 Accumulated depreciation and amortization (700,056 ) (577,817 ) Property and equipment, net $ 726,500 $ 741,508 Depreciation expense was $125.6 million, $121.3 million and $110.3 million for 2020, 2019, and 2018, respectively. Depreciation expense is primarily reflected in depreciation and amortization on the consolidated statements of income. There was no impairment expense recognized in 2020. Impairment expense was $4.1 million and $4.6 million for 2019 and 2018, respectively. |
Leases
Leases | 12 Months Ended |
Jan. 03, 2021 | |
Leases [Abstract] | |
Leases | 7. Leases Lease cost includes both the fixed and variable expenses recorded for leases. The components of lease cost are as follows: Year Ended Year Ended Classification January 3, 2021 December 29, 2019 Operating lease cost Selling, general and administrative expenses ( 1), (2) $ 191,279 $ 177,089 Finance lease cost: Amortization of Property and Equipment Depreciation and amortization 966 966 Interest on lease liabilities Interest expense 970 997 Variable lease cost Selling, general and administrative expenses ( 1) 57,789 53,731 Sublease income Selling, general and administrative expenses (1,192 ) (1,057 ) Total net lease cost $ 249,812 $ 231,726 (1) Supply chain-related amounts of $7.8 million and $8.2 million were included in cost of sales for 2020 and 2019, respectively. (2) Rent expense in fiscal year 2018 totaled $137.5 million under ASC 840. Supplemental balance sheet information related to leases is as follows: As of As of Classification January 3, 2021 December 29, 2019 Assets Operating Operating lease assets $ 1,045,408 $ 1,028,436 Finance Property and equipment, net 9,218 10,184 Total lease assets $ 1,054,626 $ 1,038,620 Liabilities Current Operating Current portion of operating lease liabilities $ 135,739 $ 106,153 Finance Current portion of finance lease liabilities 959 754 Noncurrent Operating Long-term operating lease liabilities 1,069,535 1,078,927 Finance Long-term debt and finance lease liabilities 10,459 11,419 Total lease liabilities $ 1,216,692 $ 1,197,253 January 3, 2021 December 29, 2019 Weighted average remaining lease term (years) Operating leases 9.8 10.2 Finance leases 9.7 10.7 Weighted average discount rate Operating leases 7.2 % 7.5 % Finance leases 8.4 % 8.3 % Supplemental cash flow and other information related to leases is as follows: Year Ended Year Ended January 3, 2021 December 29, 2019 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows for operating leases $ 186,280 $ 153,292 Operating cash flows for finance leases 970 997 Lease assets obtained in exchange for lease liabilities: Finance leases $ — $ — Operating leases 118,075 160,134 A summary of maturities of lease liabilities is as follows: Operating Leases ( 1) Finance Leases Total 2021 $ 195,910 $ 1,591 $ 197,501 2022 197,145 1,671 198,816 2023 173,498 1,556 175,054 2024 175,700 1,734 177,434 2025 171,292 1,904 173,196 Thereafter 807,312 8,562 815,874 Total lease payments 1,720,857 17,018 1,737,875 Less: Imputed interest (515,583 ) (5,600 ) (521,183 ) Total lease liabilities 1,205,274 11,418 1,216,692 Less: Current portion (135,739 ) (959 ) (136,698 ) Long-term lease liabilities $ 1,069,535 $ 10,459 $ 1,079,994 (1) Operating lease payments include $184.8 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $183.0 million of legally binding minimum lease payments for leases executed but not yet commenced. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 29, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 8. Intangible Assets A summary of the activity and balances in intangible assets is as follows: Balance at December 30, 2018 Adjustments/ Transfers ( 1) Balance at December 29, 2019 Gross Intangible Assets Indefinite-lived trade names $ 182,937 $ — $ 182,937 Indefinite-lived liquor licenses 2,023 — 2,023 Finite-lived trade names 1,800 — 1,800 Leasehold interests 18,773 (18,773 ) — Total intangible assets $ 205,533 $ (18,773 ) $ 186,760 Accumulated Amortization Finite-lived trade names $ (1,185 ) $ (180 ) $ (1,365 ) Leasehold interests (9,545 ) 9,545 — Total accumulated amortization $ (10,730 ) $ 9,365 $ (1,365 ) (1) As of the first day of fiscal 2019, the favorable leasehold interest balance was reclassified into the new operating lease asset balance due to the adoption of ASC 842. As a result, the amortization of these assets is recorded as part of the single rent expense to be recorded on a monthly basis for each lease. Refer to Note 7, “Leases”, for further details. Balance at December 29, 2019 Adjustments/ Transfers Balance at January 3, 2021 Gross Intangible Assets Indefinite-lived trade names $ 182,937 $ — $ 182,937 Indefinite-lived liquor licenses 2,023 — 2,023 Finite-lived trade names 1,800 (800 ) 1,000 Total intangible assets $ 186,760 $ (800 ) $ 185,960 Accumulated Amortization Finite-lived trade names $ (1,365 ) $ 365 $ (1,000 ) Total accumulated amortization $ (1,365 ) $ 365 $ (1,000 ) Amortization expense was ($0.4) million, $0.2 million and $1.4 million for 2020, 2019, and 2018, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Jan. 03, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 9. Goodwill The Company’s goodwill balance was $368.9 million and $368.1 million as of January 3, 2021 and December 29, 2019, respectively. As of January 3, 2021 and December 29, 2019, the Company had no accumulated goodwill impairment losses. The goodwill was related to the acquisition of Sunflower Farmers Market stores and Henry’s Farmers Market stores. A summary of the activity and balance in goodwill is as follows: Balance at December 29, 2019 Adjustments Balance at January 3, 2021 Goodwill $ 368,078 $ 800 $ 368,878 |
Other Assets
Other Assets | 12 Months Ended |
Jan. 03, 2021 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Assets | 10. Other Assets As of January 3, 2021 and December 29, 2019, other assets of $14.7 and $11.7 million, respectively, primarily consisted of deferred software as a service, capitalized durable supplies, sublease deferred rent, and miscellaneous other assets. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Jan. 03, 2021 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | 11. Accrued Liabilities A summary of accrued liabilities is as follows: As Of January 3, 2021 December 29, 2019 Self-insurance reserves $ 25,227 $ 22,806 Accrued occupancy related (CAM, property taxes, etc.) 19,939 16,211 Gift cards, net of breakage 15,888 15,902 Accrued sales and use tax 14,712 12,010 Other accrued liabilities 67,636 69,553 Total $ 143,402 $ 136,482 |
Accrued Salaries and Benefits
Accrued Salaries and Benefits | 12 Months Ended |
Jan. 03, 2021 | |
Payables And Accruals [Abstract] | |
Accrued Salaries and Benefits | 12. Accrued Salaries and Benefits A summary of accrued salaries and benefits is as follows: As Of January 3, 2021 December 29, 2019 Bonuses $ 41,637 $ 16,800 Payroll 18,171 15,667 Vacation 14,669 11,880 Severance and other 2,218 4,232 Total $ 76,695 $ 48,579 |
Long-Term Debt and Finance Leas
Long-Term Debt and Finance Lease Liabilities | 12 Months Ended |
Jan. 03, 2021 | |
Long Term Debt And Finance Lease Liabilities [Abstract] | |
Long-Term Debt and Finance Lease Liabilities | 13. Long-Term Debt and Finance Lease Liabilities A summary of long-term debt is as follows: As Of Facility Maturity Interest January 3, 2021 December 29, 2019 Senior secured debt $700.0 million Credit Agreement March 27, 2023 Variable $ 250,000 $ 538,000 Finance lease liabilities (see Note 7, "Leases") Various n/a 10,459 11,419 Long-term debt and finance lease liabilities $ 260,459 $ 549,419 Senior Secured Revolving Credit Facility March 2018 Refinancing On March 27, 2018, the Company’s subsidiary, Sprouts Farmers Markets Holdings, LLC (“Intermediate Holdings”), as borrower, entered into an amended and restated credit agreement (the “Amended and Restated Credit Agreement”) to amend and restate the Company’s existing 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. Concurrently with the closing of the Amended and Restated Credit Agreement, all commitments under the Former Credit Facility were terminated, resulting in a $0.3 million loss on early extinguishment of debt, recorded in interest expense during the first quarter of fiscal year 2018. The loss was due to the write-off of a proportional amount of deferred financing costs associated with the Former Credit Facility as the result of certain banks exiting the Amended and Restated Credit Agreement in connection with the refinancing. No amounts were outstanding under the Former Credit Facility as of January 3, 2021 The Company capitalized debt issuance costs of $2.1 million related to the refinancing 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 subfacility 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 $34.2 million have been issued as of January 3, 2021, 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 0.5%. 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 January 3, 2021, 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 100% of outstanding debt under the Amended and Restated Credit Agreement is fixed, reflecting the effects of floating to fixed interest rate swaps (see Note 22, “Derivative Financial Instruments”). As of January 3, 2021, outstanding letters of credit under the Amended and Restated Credit Agreement were subject to a participation fee of 1.25% per annum and an issuance fee of 0.125% per annum. 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 fiscal year 2020, the Company made no additional borrowings and made a total of 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, starting with the fiscal quarter ended April 1, 2018. The Company was in compliance with all applicable covenants under the Amended and Restated Credit Agreement as of January 3, 2021. Former Credit Facility On April 17, 2015, Intermediate Holdings, as borrower, entered into the Former Credit Facility that provided for a revolving credit facility with an initial aggregate commitment of $450.0 million, subject to an expansion feature set forth therein. The Former Credit Facility also provided for a letter of credit subfacility and a $15.0 million swingline facility. The Former Credit Facility was scheduled to mature, and the commitments thereunder were scheduled to terminate, on April 17, 2020. Loans under the Former Credit Facility bore interest, at the Company’s option, either at adjusted LIBOR plus 1.50% per annum, or a base rate plus 0.50% per annum. The interest rate margins were subject to adjustment pursuant to a pricing grid based on the Company’s total gross leverage ratio, as defined in the Former Credit Facility. Under the terms of the Former Credit Facility, the Company was obligated to pay a commitment fee on the available unused amount of the commitments equal to 0.20% per annum. |
Other Long-Term Liabilities
Other Long-Term Liabilities | 12 Months Ended |
Jan. 03, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | 14. Other Long-Term Liabilities A summary of other long-term liabilities is as follows: As Of January 3, 2021 December 29, 2019 Long-term portion of self-insurance reserves $ 23,291 $ 24,058 Other 17,621 17,459 Total $ 40,912 $ 41,517 |
Self-Insurance Programs
Self-Insurance Programs | 12 Months Ended |
Jan. 03, 2021 | |
Insurance [Abstract] | |
Self-Insurance Programs | 15. Self-Insurance Programs The Company is self-insured for costs related to workers’ compensation, general liability and employee health benefits up to certain stop-loss limits. The Company establishes reserves for the ultimate obligation of reported and incurred but not reported (“IBNR”) claims. IBNR claims are estimated using various techniques, including analysis of historical trends and actuarial valuation methods. The Company purchases coverage from third-party insurers for exposures in excess of certain stop-loss limits and recorded receivables of $ 1 .0 million and a $ million from its insurance carriers for payments expected to be made in excess of self-insured retentions at January 3, 2021 and December 29 , 201 9 , respectively. The Company recorded amounts for general liability , worker’s compensation and team member health benefit liabilities of $ 48.5 million and $ million at January 3, 2021 and December 29 , 201 9 , respectively . See Note 1 1 , “Accrued Liabilities” for current amounts recorded for general liability , workers’ compensation and team member health benefit liabilities. |
Defined Contribution Plan
Defined Contribution Plan | 12 Months Ended |
Jan. 03, 2021 | |
Postemployment Benefits [Abstract] | |
Defined Contribution Plan | 16. Defined Contribution Plan The Company maintains the Sprouts Farmers Market, Inc. Employee 401(k) Savings Plan (the “Plan”), which is a defined contribution plan covering all eligible team members. Under the provisions of the Plan, participants may direct the Company to defer a portion of their compensation to the Plan, subject to the Internal Revenue Code limitations. The Company provides for an employer matching contribution equal to 50% of each dollar contributed by the participants up to 6% of their eligible compensation. Total expense recorded for the matching under the Plan: Year Ended January 3, 2021 December 29, 2019 December 30, 2018 $ 6,588 $ 5,756 $ 4,981 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 03, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 17. Income Taxes On December 22, 2017, the legislation commonly referred to as the Tax Cuts and Jobs Act (“Tax Act”) was enacted into law, which changed various corporate income tax provisions within the existing Internal Revenue Code. Substantially all the provisions of the Tax Act were effective for taxable years beginning after December 31, 2017. The most significant change that impacted the Company was the reduction in the corporate federal income tax rate from 35% to 21%. The Company realized a $2.6 million non-cash income tax benefit in the third quarter of 2018 in the filing of the 2017 return related to the reduction of the federal corporate income tax rate. The Company changed its method of tax accounting on certain items resulting in the acceleration of deductions into prior periods subject to a higher 35% corporate income tax rate. Income Tax Provision The income tax provision consists of the following: Year Ended January 3, 2021 December 29, 2019 December 30, 2018 U.S. Federal—current $ 63,957 $ 36,091 $ 9,319 U.S. Federal—deferred 3,725 186 19,441 U.S. Federal—total 67,682 36,277 28,760 State—current 20,442 8,649 5,271 State—deferred 1,304 1,613 3,229 State—total 21,746 10,262 8,500 Total provision $ 89,428 $ 46,539 $ 37,260 Tax Rate Reconciliation Income tax provision differed from the amounts computed by applying the U.S. federal income tax rate to pre-tax income as a result of the following: Year Ended January 3, 2021 December 29, 2019 December 30, 2018 Federal statutory rate 21.0 % 21.0 % 21.0 % Increase (decrease) in income taxes resulting from: State income taxes, net of federal benefit 4.6 4.4 3.8 Enhanced charitable contribution impact (1.0 ) (0.7 ) — Excess tax benefits from share based payments — — (5.2 ) Change in uncertain tax position reserves 0.1 (1.1 ) 1.5 Amended returns (1.0 ) — — Benefit of federal tax credit (0.9 ) (1.6 ) (0.7 ) Other, net 0.9 1.7 (1.4 ) Effective tax rate 23.7 % 23.7 % 19.0 % The effective income tax rate was 23.7% in 2020 and 2019. The effective income tax rate in 2020 was primarily affected by a decrease in federal tax credits and prior year release of uncertain tax positions, partially offset by an increase in charitable contribution deductions and the benefit recognized from amended returns. The effective income tax rate increased to 23.7% in 2019 from 19.0% in 2018 primarily due to the volume of expiring pre-IPO option exercises in 2018, partially offset by an increase in the Company’s federal tax credit benefit. Excess tax benefits or detriments associated with share-based payment awards are recognized as income tax benefits or expense in the income statement. The tax effects of exercised or vested awards are treated as discrete items in the reporting period in which they occur. The income tax detriment resulting from share-based awards were $0.5 million and $1.6 million for 2020 and 2019, respectively, and are reflected as an increase to the 2020 and 2019 income tax provisions. The income tax benefit resulting from share-based awards was $12.4 million for 2018 and is reflected as a reduction to the 2018 income tax provision. Deferred Taxes Significant components of the Company’s deferred tax assets and deferred tax liabilities are as follows: As Of January 3, 2021 December 29, 2019 Deferred tax assets Employee benefits $ 19,498 $ 14,663 Tax credits 270 427 Operating leases ( 1) 309,756 303,950 Other lease related ( 1) 4,955 5,177 Other accrued liabilities 3,926 5,027 Charitable contribution carryforward 1,028 7,819 Inventories and other 4,504 3,520 Total gross deferred tax assets 343,937 340,583 Deferred tax liabilities Depreciation and amortization (93,738 ) (97,309 ) Intangible assets (39,602 ) (33,293 ) Operating leases ( 1) (268,670 ) (264,337 ) Total gross deferred tax liabilities (402,010 ) (394,939 ) Net deferred tax (liability) / asset $ (58,073 ) $ (54,356 ) (1) The deferred tax assets and liabilities disclosure at December 29, 2019 has been adjusted to reflect the gross deferred tax right-of-use asset and related gross deferred lease liability recognized in accordance with ASC 842. A valuation allowance is established for deferred tax assets if it is more likely than not that these items will either expire before the Company is able to realize their benefits, or that the realization of future deductions is uncertain. Management performs an assessment over future taxable income to analyze whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company has evaluated all available positive and negative evidence and believes it is probable that the deferred tax assets will be realized and has not recorded a valuation allowance against the Company’s deferred tax assets as of January 3, 2021 and December 29, 2019. The Company applies the authoritative accounting guidance under ASC 740 for the recognition, measurement, classification and disclosure of uncertain tax positions taken or expected to be taken in a tax return. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: As Of January 3, 2021 December 29, 2019 December 30, 2018 Beginning balance $ 1,343 $ 3,658 $ 794 Additions based on tax positions related to the current year 16 289 2,864 Additions based on tax positions related to prior years 647 — — Reductions for tax positions for prior years (203 ) (2,604 ) — Ending balance $ 1,803 $ 1,343 $ 3,658 The Company had unrecognized tax benefits (tax effected) of $1.8 million and $1.3 million as of January 3, 2021 and December 29, 2019, respectively. These would impact the effective tax rate if recognized. The Company’s policy is to recognize accrued interest and penalties as a component of income tax expense. The Company does not anticipate a decrease in the total amount of unrecognized tax benefits during the next twelve months.. The Company files income tax returns with federal and state tax authorities within the United States. The general statute of limitations for income tax examinations remains open for federal tax returns for tax years 2017 through 2019 and state tax returns for the tax years 2016 through 2019. 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. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Jan. 03, 2021 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | 18. Related-Party Transactions A former member of the Company’s board of directors was an investor in a company that is a supplier of coffee to the Company for resale. Effective January 1, 2019, this director no longer held an ownership interest in the supplier and effective June 20, 2019, this director resigned from the Company’s board of directors. During 2020 and 2019, there were no purchases from this supplier. During 2018, there were $2.6 million in purchases. As of January 3, 2021 and December 29, 2019, the Company had no recorded accounts payable due to this vendor. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 03, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 19. Commitments and Contingencies Commitments Real estate obligations, which include legally binding minimum lease payments for leases executed but not yet commenced were $183.0 million as of January 3, 2021. In addition to its lease obligations, the Company maintains certain purchase commitments with various vendors to ensure its operational needs are fulfilled. As of January 3, 2021, total future purchase commitments were $9.0 million. Commitments related to the Company’s business operations cover varying periods of time and are not individually significant. These commitments are expected to be fulfilled with no adverse consequences to the Company’s operations or financial conditions. 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 judgments and actual claim settlements and associated expenses may differ from the Company’s current provisions for loss. See Note 15, “Self-Insurance Programs” for more information. 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 have 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. On November 20, 2020, CERT filed a notice of appeal to appeal the ruling on the defense motion for summary judgment. At this stage of the proceedings, 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. |
Capital Stock
Capital Stock | 12 Months Ended |
Jan. 03, 2021 | |
Equity [Abstract] | |
Capital Stock | 20. Capital Stock Common stock As of January 3, 2021, 117,953,435 shares of the Company’s common stock were issued and outstanding Year Ended January 3, 2021 December 29, 2019 December 30, 2018 Options exercised 59,561 316,493 2,824,460 Other share issuances under stock plans 440,956 506,093 403,233 Share Repurchases On February 20, 2018, the Company’s board of directors authorized a new $350 million common stock share repurchase program, replacing the previous share repurchase program which was completed in the second quarter of 2018. Upon this authorization’s December 31, 2019 expiration, $42.0 million remained unused. 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 January 3, 2021. The shares under the Company’s repurchase programs may be purchased on a discretionary basis from time to time prior to the applicable expiration date, subject to general business and market conditions and other investment opportunities, through open market purchases, privately negotiated transactions, or other means, including through Rule 10b5-1 trading plans. The board’s authorization of the share repurchase programs does not obligate the Company to acquire any particular amount of common stock, and the repurchase programs may be commenced, suspended, or discontinued at any time. The Company has used borrowings under its Former Credit Facility and Amended and Restated Credit Agreement to assist with the repurchase programs (see Note 13, “Long-Term Debt and Finance Lease Liabilities”). Share repurchase activity under the Company’s repurchase programs for the periods indicated was as follows (total cost in thousands): Year Ended January 3, 2021 December 29, 2019 Number of common shares acquired — 7,950,858 Average price per common share acquired $ — $ 22.18 Total cost of common shares acquired $ — $ 176,310 Shares purchased under the Company’s repurchase programs were subsequently retired. Preferred Stock The Company’s board of directors is authorized, subject to limitations prescribed by Delaware law, to issue up to 10,000,000 shares of the Company’s preferred stock in one or more series, to establish from time to time the number of shares to be included in each series, to fix the designation, powers, preferences, and rights of the shares of each series and any of its qualifications, limitations, or restrictions, in each case without further action by the Company’s stockholders. The Company’s board of directors can also increase or decrease the number of shares of any series of preferred stock, but not below the number of shares of that series then outstanding. The Company’s board of directors may authorize the issuance of preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of the common stock. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring, or preventing a change in control of the Company and might adversely affect the market price of the Company’s common stock and the voting and other rights of the holders of the Company’s common stock. The Company has no current plan to issue any shares of preferred stock. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Jan. 03, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 21. 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. 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): Year Ended January 3, 2021 December 29, 2019 December 30, 2018 Basic net income per share: Net income $ 287,450 $ 149,629 $ 158,536 Weighted average shares outstanding 117,821 119,368 128,827 Basic net income per share $ 2.44 $ 1.25 $ 1.23 Diluted net income per share: Net income $ 287,450 $ 149,629 $ 158,536 Weighted average shares outstanding 117,821 119,368 128,827 Dilutive effect of equity-based awards: Assumed exercise of options to purchase shares 16 52 429 Restricted Stock Units 341 178 220 Restricted Stock Awards 9 55 136 Performance Share Awards 37 89 164 Weighted average shares and equivalent shares outstanding 118,224 119,742 129,776 Diluted net income per share $ 2.43 $ 1.25 $ 1.22 For the year ended January 3, 2021, the Company had 219,736 options, 62,347 RSUs and 299,629 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 year ended December 29, 2019, the Company had 521,502 options and 302,621 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 year ended December 30, 2018, the Company had 1,105,334 options and 128,854 PSAs 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 | 12 Months Ended |
Jan. 03, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 22. 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 consisted of five cash flow hedges, of which two remain outstanding as of January 3, 2021. 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 two outstanding swaps was $250.0 million at January 3, 2021, under which the Company pays a fixed rate and receives a variable rate of interest (cash flow swap). The cash flow swaps hedge the change in interest rates on debt related to fluctuations in interest rates and each have a length of one year and mature annually from 2021 to 2022. 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: As of January 3, 2021 As of December 29, 2019 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Interest rate swaps Accrued liabilities $ 5,695 Accrued liabilities $ 1,736 Interest rate swaps Other long-term liabilities 5,756 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, net on the consolidated statement of income. The following table summarizes these gains and losses for 2020 and 2019: Year Ended January 3, 2021 December 29, 2019 Consolidated Statements of Income Classification Interest expense (income), net $ 4,307 $ (256 ) |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Jan. 03, 2021 | |
Equity [Abstract] | |
Comprehensive Income | 23. Comprehensive Income The following table presents the changes in accumulated other comprehensive income (loss) for the year ended January 3, 2021: Cash Flow Hedges Balance at December 30, 2018 $ 1,134 Other comprehensive income (loss), net of tax Unrealized losses on cash flow hedging activities, net of income tax of ($2,078) (6,006 ) Reclassification of net gains on cash flow hedges to net income, net of income tax of $66 190 Total other comprehensive income (loss) (5,816 ) Balance at December 29, 2019 $ (4,682 ) Other comprehensive income (loss), net of tax Unrealized losses on cash flow hedging activities, net of income tax of ($205) (592 ) Reclassification of net losses on cash flow hedges to net income, net of income tax of ($1,107) (3,200 ) Total other comprehensive income (loss) (3,792 ) Balance at January 3, 2021 $ (8,474 ) Amounts reclassified from accumulated other comprehensive income (loss) to net income are included within interest expense, net on the consolidated statement of income. The estimated amount expected to be reclassified from accumulated other comprehensive income (loss) to net income within the next twelve months, based on interest rates at January 3, 2021, is a loss of $5.7 million. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 03, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 24. 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 Company’s fair value hierarchy for the Company’s financial assets and liabilities measured at fair value on a recurring basis as of January 3, 2021 and December 29, 2019: January 3, 2021 Level 1 Level 2 Level 3 Total Long-term debt $ — $ 250,000 $ — $ 250,000 Interest rate swap liability — 11,451 — 11,451 Total liabilities $ — $ 261,451 $ — $ 261,451 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 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 or long-lived asset impairment evaluation as described above is based upon Level 3 inputs. When necessary, the Company uses third party market data and market participant assumptions to derive the fair value of its asset groupings, which primarily include right-of-use lease assets and property and equipment. For further details, see Note 3, “Significant Accounting Policies – Impairment of Long-lived Assets”. Cash, cash equivalents, and restricted cash, accounts receivable, prepaid expenses and other current assets, accounts payable and 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 January 3, 2021 and December 29, 2019. |
Segments
Segments | 12 Months Ended |
Jan. 03, 2021 | |
Segment Reporting [Abstract] | |
Segments | 25. Segments The Company has one reportable and one operating segment, healthy grocery stores. In accordance with ASC 606, the following table represents a disaggregation of revenue for fiscal 2020 and 2019. Year Ended January 3, 2021 December 29, 2019 Perishables $ 3,700,878 57.2 % $ 3,252,928 57.7 % Non-Perishables 2,767,881 42.8 % 2,381,907 42.3 % Net Sales $ 6,468,759 100.0 % $ 5,634,835 100.0 % 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 | 12 Months Ended |
Jan. 03, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 26. Share-Based Compensation 2013 Incentive Plan The Company’s board of directors adopted, and its shareholders 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 and replaced the Sprouts Farmers Markets, LLC Option Plan The Company granted to certain officers, directors and team members the following awards during 2019, under the 2013 Incentive Plan: Grant Date Award Type Shares of common stock Exercise Price Grant date fair value March 4, 2019 RSUs 386,115 — $ 23.12 PSAs 95,768 — $ 23.12 Options 53,866 $ 23.12 $ 7.63 May 13, 2019 RSUs 45,682 — $ 21.70 PSAs 2,999 — $ 21.70 June 24, 2019 RSUs 177,975 — $ 18.64 PSAs 75,000 — $ 18.64 August 12, 2019 RSUs 12,313 — $ 17.54 December 3, 2019 RSUs 3,159 — $ 20.22 The RSUs vest either one-third one-half The Company granted to certain officers, directors and team members the following awards during 2020, under the 2013 Incentive Plan: Grant Date Award Type Shares of common stock Exercise Price Grant date fair value March 9, 2020 RSUs 485,367 — $ 16.47 PSAs 174,902 — $ 16.47 Options 1,055,907 $ 16.47 $ 4.86 May 12, 2020 RSUs 66,550 — $ 25.58 PSAs 11,389 — $ 25.58 Options 15,569 $ 25.58 $ 8.03 August 10, 2020 RSUs 35,655 — $ 24.77 PSAs 5,762 — $ 24.77 Options 14,052 $ 24.77 $ 7.74 The RSUs vest either one-third one-half 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 January 3, 2021, there were 2,547,567 stock awards outstanding and 4,433,820 shares remaining available for issuance under the 2013 Incentive Plan. Stock Options In the event of a change in control as defined in the award agreements issued under the 2013 Incentive Plan, all options and awards issued prior to 2015 become immediately vested and exercisable. For grants issued in and subsequent to 2015, the options and awards only become immediately vested in the event of a change in control (as defined in the applicable team member award agreement) if the grants are not continued or assumed by the acquirer on a substantially equivalent basis. If the options and awards continue or are assumed on a substantially equivalent basis, but employment is terminated by the Company or an acquirer without cause or by the team member for good reason (as such terms are defined in the applicable team member award agreement) within 24 months following the change in control, such options or awards will become immediately vested upon such termination. Under all other scenarios, the awards continue to vest per the schedule outlined in the applicable award agreement. Shares issued for option exercises are newly issued shares. The estimated weighted average fair values of options granted during 2020, 2019, and 2018 are $4.94, $7.63 and $7.80, respectively, and were calculated using the following assumptions in the table below: 2020 2019 2018 Dividend yield 0.00 % 0.00 % 0.00 % Expected volatility 34.80 % 34.89 % 35.20 % Risk free interest rate 0.46 % 2.53 % 2.76 % Expected term, in years 4.50 4.50 4.50 The grant date weighted average fair value of the 1.1 million options issued but not vested as of January 3, 2021 was $5.00. The grant date weighted average fair value of the 0.1 million options issued but not vested as of December 29, 2019 was $7.63. The grant date weighted average fair value of the 0.1 million options issued but not vested as of December 30, 2018 was $8.35. The following table summarizes grant date weighted average fair value of options granted and options forfeited: Year Ended January 3, 2021 December 29, 2019 December 30, 2018 Grant date weighted average fair value of options granted $ 4.94 $ 7.63 $ 7.80 Grant date weighted average fair value of options forfeited $ 8.94 $ 7.03 $ 9.32 Expected volatility for option grants and modifications are calculated based upon the Company’s historical volatility data over a time frame consistent with the expected life of the awards. The expected term is estimated based on the expected period that the options are anticipated to be outstanding after initial grant until exercise or expiration based upon various factors including the contractual terms of the awards and vesting schedules. The expected risk-free rate is based on the U.S. Treasury yield curve rates in effect at the time of the grant using the term most consistent with the expected life of the award. Dividend yield was estimated at zero as the Company does not anticipate making regular future distributions to stockholders. The total intrinsic value of options exercised was $0.2 million, $2.1 million, and $53.3 million for 2020, 2019, and 2018, respectively. The following table summarizes option activity during 2020: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value Outstanding at December 29, 2019 523,725 $ 29.84 Granted 1,085,528 16.71 Forfeited (219,484 ) 31.41 Exercised (59,561 ) 22.56 $ 156 Outstanding at January 3, 2021 1,330,208 19.19 5.30 $ 3,784 Exercisable—January 3, 2021 234,703 30.13 1.27 $ — Vested/Expected to vest—January 3, 2021 1,330,208 $ 19.19 5.30 $ 3,784 RSUs In the event of a change in control as defined in the award agreements issued under the 2013 Incentive Plan, all RSUs granted prior to 2015 become immediately vested. RSUs granted in and subsequent to 2015 only become immediately vested in the event of a change in control (as defined in the applicable team member award agreement) if the awards are not continued or assumed by the acquirer on a substantially equivalent basis. If the awards continue or are assumed on a substantially equivalent basis, but employment is terminated by the Company or an acquirer without cause or by the team member for good reason (as such terms are defined in the applicable team member award agreement) within 24 months following the change in control, such awards will become immediately vested upon such termination. Under all other scenarios, the awards continue to vest per the schedule outlined in the applicable award agreement. Shares issued for RSU vesting are newly issued shares. The fair value for restricted stock units is calculated based on the closing stock price on the date of grant. The total grant date fair value of RSUs vested during 2020, 2019 and 2018 was $7.8 million, $7.4 million and $5.1 million, respectively. The following table summarizes the weighted average grant date fair value of RSUs awarded during 2020, 2019, and 2018: Year Ended January 3, 2021 December 29, 2019 December 30, 2018 RSUs awarded $ 18.01 $ 21.62 $ 24.80 The following table summarizes RSU activity during 2020: Number of RSUs Weighted Average Grant Date Fair Value Outstanding at December 29, 2019 725,653 $ 22.02 Awarded 587,572 18.01 Released (350,206 ) 22.23 Forfeited (60,761 ) 20.55 Outstanding at January 3, 2021 902,258 $ 19.43 PSAs PSAs granted in fiscal year 2016 were restricted shares that were subject to the Company achieving certain earnings before interest and taxes (“EBIT”) performance targets on an annual and cumulative basis over a three-year The EBIT target for each of the three years during the performance period was based on a percentage increase over the previous year’s actual EBIT, with each annual performance tranche measured independently of the previous and next tranche and was measured against a cumulative performance PSAs granted in March 2017 were subject to the Company achieving certain earnings per share performance targets during 2017. The criteria is based on a range of performance targets in which grantees may earn between 10% and 150% of the base number of awards granted. The performance conditions with respect to 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 the remaining 50% vested on the third anniversary of the grant date (March 2020). During the year ended January 3, 2021, 35,697 of the 2017 PSAs vested. There were no outstanding 2017 PSAs as of January 3, 2021. 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). Based on 2020 performance, the Company has accrued at the maximum pay out level. PSA’s 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). The PSAs only become immediately vested in the event of a change in control (as defined in the applicable team member award agreement) if the awards are not continued or assumed by the acquirer on a substantially equivalent basis. If the awards continue or are assumed on a substantially equivalent basis, but employment is terminated by the Company or an acquirer without cause or by the team member for good reason (as such terms are defined in the applicable team member award agreement) within 24 months following the change in control, such awards will become immediately vested upon such termination. Under all other scenarios, the awards continue to vest per the schedule outlined in the applicable team member award agreement. Shares issued for PSA vesting are newly issued shares. The fair value for performance stock awards is calculated based on the closing stock price on the date of grant. The total grant date fair value of PSAs granted during 2020 was $3.3 million. The total grant date fair value of PSAs vested during 2020 was $0.6 million. The total grant date fair value of performance shares forfeited or not earned during 2020 was $0.3 million. The total grant date fair value of the 0.3 million PSAs issued but not released as of January 3, 2021 was $5.8 million. The total grant date fair value of PSAs granted during 2019 was $3.7 million. The total grant date fair value of PSAs vested during 2019 was $1.9 million. The total grant date fair value of performance shares forfeited or not earned during 2019 was $3.9 million. The total grant date fair value of the 0.2 million PSAs issued but not released as of December 29, 2019 was $3.4 million. The total grant date fair value of PSAs granted during 2018 was $3.2 million. The total grant date fair value of PSAs vested during 2018 was $0.7 million. The total grant date fair value of performance shares forfeited or not earned during 2018 was $3.5 million. The total grant date fair value of the 0.3 million PSAs issued but not released as of December 30, 2018 was $5.5 million. The following table summarizes PSA activity during 2020: Number of PSAs Weighted Average Grant Date Fair Value Outstanding at December 29, 2019 169,771 $ 20.26 Awarded 192,053 17.26 Released (35,697 ) 18.11 Forfeited (10,726 ) 24.08 PSA earned — — PSAs not earned — — Outstanding at January 3, 2021 315,401 $ 18.54 RSAs The fair value of RSAs is based on the closing price of the Company’s common stock on the grant date. RSAs either vested ratably over a seven quarter period beginning on December 31, 2016, cliff vested on June 30, 2018, or vest annually over three years. The RSAs only become immediately vested in the event of a change in control (as defined in the applicable team member award agreement) if the awards are not continued. If the awards continue, but employment is terminated by the Company or an acquirer without cause or by the team member for good reason (as such terms are defined in the applicable team member award agreement) within 24 months following the change in control, such awards will become immediately vested upon such termination. Under all other scenarios, the awards continue to vest per the schedule outlined in the applicable team member award agreement. Shares issued for RSA vesting are newly issued shares. The fair value for restricted stock awards is calculated based on the closing stock price on the date of grant. There were no RSAs granted during 2020, 2019 or 2018. The total grant date fair value of shares of restricted stock released upon vesting during 2020, 2019 and 2018 was $1.0 million, $1.6 million and $3.3 million, respectively. There were no RSAs forfeited in 2020, and the total grant date fair value of shares of restricted stock forfeited during 2019 and 2018 was $0.3 million and $0.6 million, respectively. There were no outstanding RSAs as of January 3, 2021. The following table summarizes RSA activity during 2020: Number of RSAs Weighted Average Grant Date Fair Value Outstanding at December 29, 2019 55,053 $ 18.11 Awarded — — Released (55,053 ) 18.11 Forfeited — — Outstanding at January 3, 2021 — $ — 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: Year Ended January 3, 2021 December 29, 2019 December 30, 2018 Share-based compensation expense before income taxes $ 14,339 $ 8,949 $ 14,512 Income tax benefit (2,662 ) (2,093 ) (3,383 ) Net share-based compensation expense $ 11,677 $ 6,856 $ 11,129 As of January 3, 2021, total unrecognized compensation expense and remaining weighted average recognition period related to outstanding share-based awards were as follows: Unrecognized compensation expense Remaining weighted average recognition period Options $ 3,971 2.2 RSUs 10,886 1.6 PSAs 6,709 1.7 RSAs — — Total unrecognized compensation expense at January 3, 2021 $ 21,566 During 2020, 2019 and 2018, the Company received $1.3 million, $4.9 million and $21.8 million in cash proceeds from the exercise of options, respectively. The Company recorded tax detriments of $0.5 million and $1.6 million during 2020 and 2019, respectively, resulting from share-based awards. During 2018, the company recorded $12.4 million Share Award Restructuring During the year ended December 29, 2019, certain stock options and awards were modified pursuant to a separation agreement with the Company’s former President and Chief Operating Officer. A During the year ended December 30, 2018, certain stock options were modified pursuant to a separation agreement with the Company’s former Chief Executive Officer. A total of 995,937 vested options were modified such that their remaining exercise period was increased from three months to six months after the separation date. Additionally, a total of 125,241 options and awards (RSUs, PSAs, and RSAs) were modified such that they will be permitted to vest in March 2019, which is subsequent to the former Chief Executive Officer’s separation date. These options and awards will expire three months after vesting, consistent with the other modified options. These modifications resulted in an incremental expense, net of $2.5 million of stock compensation reversals, of $0.2 million during the year ended December 30, 2018. All other unvested options and awards were forfeited. This expense was presented in store closure and other costs, net on the Company’s consolidated statements of income. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Jan. 03, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | 27. Quarterly Financial Data (Unaudited) The following table sets forth certain of the Company’s unaudited consolidated statements of income data for each of the fiscal quarters in 2020 and 2019. Fiscal Quarter Ended January 3, 2021 September 27, 2020 June 28, 2020 March 29, 2020 December 29, 2019 September 29, 2019 June 30, 2019 March 31, 2019 (dollars in thousands, except per share amounts) Net sales $ 1,601,834 $ 1,577,598 $ 1,642,788 $ 1,646,539 $ 1,364,991 $ 1,440,222 $ 1,415,736 $ 1,413,887 Gross profit $ 588,029 $ 584,769 $ 612,659 $ 593,832 $ 468,963 $ 476,725 $ 464,782 $ 484,349 Income from operations $ 92,932 $ 78,381 $ 92,763 $ 127,589 $ 46,915 $ 39,557 $ 51,332 $ 79,556 Net income $ 68,397 $ 60,241 $ 67,002 $ 91,810 $ 31,634 $ 26,260 $ 35,343 $ 56,392 Net income per share: Basic $ 0.58 $ 0.51 $ 0.57 $ 0.78 $ 0.27 $ 0.22 $ 0.30 $ 0.46 Diluted $ 0.58 $ 0.51 $ 0.57 $ 0.78 $ 0.27 $ 0.22 $ 0.30 $ 0.46 The Company follows the same accounting policies for preparing quarterly and annual financial data and, in the opinion of management, the amounts above reflect all normal and recurring adjustments necessary for a fair statement of results for the interim periods presented. Annual amounts may not sum due to rounding. Annual period 2020 represents a 53-week fiscal year and annual period 2019 represents a 52-week fiscal year. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 03, 2021 | |
Accounting Policies [Abstract] | |
Fiscal Years | 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. Fiscal year 2020 ended on January 3, 2021 and included 53-weeks 52-weeks 52-weeks |
Significant Accounting Estimates | Significant Accounting Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. Such estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company’s critical accounting estimates include inventory valuations, lease assumptions, self-insurance reserves, impairment of long-lived assets, fair values of share-based awards, and income taxes. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid instruments with an original maturity of three months or less to be cash equivalents. The Company’s cash and cash equivalents are maintained at financial institutions in the United States of America. Deposits in transit include sales through the end of the period, the majority of which were paid with credit and debit cards and settle within a few days of the sales transactions. The amounts due from banks for these transactions at each reporting date were as follows: As Of January 3, 2021 December 29, 2019 Due from banks for debit and credit card transactions $ 93,130 $ 49,405 |
Restricted Cash | Restricted Cash Restricted cash relates to the Company’s defined benefit plan forfeitures and the Company’s healthcare, general liability and workers’ compensation plan benefits of approximately $1.7 million and $1.5 million as of January 3, 2021 and December 29, 2019, respectively, and is included in prepaid expenses and other current assets in the accompanying consolidated balance sheets. |
Accounts Receivable | Accounts Receivable Accounts receivable primarily represents billings to vendors for scan, advertising and other rebates, and billings to landlords for tenant allowances. Accounts receivable also includes receivables from the Company’s insurance carrier for payments expected to be made in excess of self-insured retentions. The Company provides an allowance for doubtful accounts when a specific account is determined to be uncollectible. |
Inventories | Inventories Inventories consist of merchandise purchased for resale, which are stated at the lower of cost or net realizable value. The cost method is used for distribution center and store perishable department inventories by assigning costs to each of these items based on a first-in, first-out (FIFO) basis (net of vendor discounts). The Company’s non-perishable inventory is valued at the lower of cost or net realizable value using weighted averaging, the use of which approximates the FIFO method. The Company believes that all inventories are saleable and no allowances or reserves for obsolescence were recorded as of January 3, 2021 and December 29, 2019. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation and amortization. Expenditures for major additions and improvements to facilities are capitalized, while maintenance and repairs are charged to expense as incurred. When property is retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of income. Depreciation expense, which includes the amortization of assets recorded as finance leases, is computed using the straight-line method over the estimated useful lives of the individual assets. Terms of leases used in the determination of estimated useful lives may include renewal options if the exercise of the renewal option is determined to be reasonably certain. The following table includes the estimated useful lives of certain of the Company’s asset classes: Computer hardware and software 3 to 5 years Furniture, fixtures and equipment 7 to 20 years Leasehold improvements up Buildings 40 years Store development costs, which include costs associated with the selection and procurement of real estate sites, are also included in property and equipment. These costs are included in leasehold improvements and are amortized over the remaining lease term of the successful sites with which they are associated. |
Self-Insurance Reserves | Self-Insurance Reserves The Company uses a combination of insurance and self-insurance programs to provide for costs associated with general liability, workers’ compensation and team member health benefits. Liabilities for self-insurance reserves are estimated based on independent actuarial estimates, which are based on historical information and assumptions about future events. The Company utilizes various techniques, including analysis of historical trends and actuarial valuation methods, to estimate the cost to settle reported claims and claims incurred but not yet reported as of the balance sheet date. The actuarial valuation methods consider loss development factors, which include the development time frame and expected claim reporting and settlement patterns, and expected loss costs, which include the expected frequency and severity of claim activity. Amounts expected to be recovered from insurance companies are included in the liability, with a corresponding amount recorded in accounts receivable. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the cost of acquired businesses in excess of the fair value of assets and liabilities acquired. The Company’s indefinite-lived intangible assets consist of trade names related to “Sprouts Farmers Market” and liquor licenses. The Company also holds intangible assets with finite useful lives consisting of the “Sunflower Farmers Market” trade name. The trade name related to “Sunflower Farmers Market” meets the definition of a defensive intangible asset and was amortized on a straight-line basis over an estimated useful life of 10 years from the date of its acquisition by the Company. Goodwill and indefinite-lived intangible assets are evaluated for impairment on an annual basis during the fourth fiscal quarter, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company’s impairment evaluation of goodwill consists of a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company’s qualitative assessment considered factors including changes in the competitive market, budget-to-actual performance, trends in market capitalization for the Company and its peers, turnover in key management personnel and overall changes in macroeconomic environment. If this qualitative assessment indicates it is more likely than not that the estimated fair value of a reporting unit exceeds its carrying value, no further analysis is required and goodwill is not impaired. Otherwise, we compare the estimated fair value of the asset to its carrying amount with an impairment loss recognized for the amount, if any, by which carrying value exceeds estimated fair value. The impairment evaluation for the Company’s indefinite-lived intangible assets consists of a qualitative assessment similar to that for goodwill. If the qualitative assessment indicates it is more likely than not that the estimated fair value of an indefinite-lived intangible asset exceeds its carrying value, no further analysis is required and the asset is not impaired. Otherwise, the Company compares the estimated fair value of the asset to its carrying amount with an impairment loss recognized for the amount, if any, by which carrying value exceeds estimated fair value. The Company has determined its business consists of a single reporting unit, healthy grocery stores. The Company has had no goodwill impairment charges for the past three fiscal years. See Note 8 , “Intangible Assets” and Note 9 , “Goodwill” for further discussion. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company assesses its long-lived assets, including property and equipment, right-of-use assets and finite-lived intangible assets, for potential impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. These events primarily include current period losses combined with a history of losses or a projection of continuing losses, a significant decrease in the market value of an asset or a decision to close or relocate a store. The Company groups and evaluates long-lived assets for impairment at the individual store level, which is the lowest level at which independent identifiable cash flows are available. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset group to the future undiscounted cash flows expected to be generated by that asset group. The Company’s impairment analysis contains management assumptions about key variables including sales growth rate, gross margin, payroll and other controllable expenses. If impairment is indicated, a loss is recognized for any excess of the carrying value over the estimated fair value of the asset group. The fair value of the asset group is estimated based on the discounted future cash flows using a discount rate commensurate with the related risk or comparable market values, if available. I |
Deferred Financing Costs | Deferred Financing Costs The Company capitalizes certain fees and costs incurred in connection with the issuance of debt. Deferred financing costs are amortized to interest expense over the term of the debt using the effective interest method. For the Amended and Restated Credit Agreement and Former Credit Facility (as defined in Note 13, “Long-Term Debt and Finance Lease Liabilities”), deferred financing costs are amortized on a straight-line basis over the term of the facility. Upon prepayment, redemption or conversion of debt, the Company accelerates the recognition of an appropriate amount of financing costs as loss on extinguishment of debt. The current and noncurrent portions of deferred financing costs are included in prepaid expenses and other current assets and other assets, respectively, in the accompanying consolidated balance sheets. |
Lease | Leases The Company leases all stores, distribution centers, and administrative offices. The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease assets, current portion of operating lease liabilities and noncurrent portion of operating lease liabilities in the accompanying consolidated balance sheets. Finance leases are included in property, plant, equipment, net, current portion of finance lease liabilities, and long-term debt and finance lease liabilities in the accompanying consolidated balance sheets. Operating lease payments are charged on a straight-line basis to rent expense, a component of selling, general and administrative expenses, over the lease term and finance lease payments are charged to interest expense and depreciation and amortization expense using a debt model over the lease term. The Company’s lease assets represent a right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease assets and liabilities and the related rent expense are recognized at the lease commencement date (date on which the Company gains access to the property) based on the estimated present value of lease payments over the lease term, net of landlord allowances expected to be received. The Company accounts for the lease and non-lease components as a single lease component for all current classes of leases. Most of the Company’s lease agreements include variable payments related to pass-through costs for maintenance, taxes, and insurance. Additionally, some of the Company’s lease agreements include rental payments based on a percentage of retail sales over contractual levels. These variable payments are not included in the measurement of the lease liability or asset and are expensed as incurred. As most of the Company’s lease agreements do not provide an implicit rate, the Company uses an estimated incremental borrowing rate, which is derived from third-party information available at the lease commencement date, in determining the present value of lease payments. The rate used is for a secured borrowing of a similar term as the lease. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to twenty years or more. The exercise of lease renewal options is at the Company’s sole discretion. The lease term includes the initial contractual term as well as any options to extend the lease when it is reasonably certain that the Company will exercise that option. Leases with a term of 12 months or less (“short-term leases”) are not recorded on the balance sheet. The Company does not currently have any material short-term leases. Additionally, the Company’s lease agreements do not contain any residual value guarantees or material restrictive covenants. The Company subleases certain real estate to third parties, which have all been classified as operating leases. The Company recognized sublease income on a straight-line basis. |
Fair Value Measurements | Fair Value Measurements The Company records its financial assets and liabilities in accordance with the framework for measuring fair value in accordance with ASC 820. This framework establishes a three-level 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. Impairment losses related to store-level assets are calculated using significant unobservable inputs including the present value of future cash flows expected to be generated using a risk-adjusted market based weighted-average cost of capital, comparable store sales growth assumptions, and third party property appraisal data. Therefore, these inputs are classified as a level 3 measurement in the fair value hierarchy. Cash, cash equivalents and restricted cash, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued salaries and benefits and other accrued liabilities approximate fair value because of the short maturity of those instruments. |
Derivative Financial Instruments | Derivative Financial Instruments The Company records derivatives at fair value. The designation of a derivative instrument as a hedge and its ability to meet the hedge accounting criteria determine how the Company reflects the change in fair value of the derivative instrument in its financial statements. A derivative qualifies for hedge accounting if, at inception, the derivative is expected to be highly effective in offsetting the underlying hedged cash flows , and the Company fulfill s the hedge documentation standards at the time it enter s into the derivative contract. The Company designate s its hedge based on the exposure it is hedging. For qualifying cash flow hedges, the Company record s changes in fair value in other comprehensive income ( “ OCI ” ). The Company release s the derivative’s gain or loss from OCI to match the timing of the underlying hedged item’s effect on earnings. The Company reviews the effectiveness of its hedging instruments quarterly. The Company recognizes changes in the fair value for derivatives not designated as hedges or those not qualifying for hedge accounting in current period earnings. The Company discontinues hedge accounting for any hedge that is no longer evaluated to be highly effective. The Company does not enter into derivative financial instruments for trading or speculative purposes, and it monitors the financial stability and credit standing of its counterparties in these transactions. |
Share-Based Compensation | Share-Based Compensation The Company measures share-based compensation cost at the grant date based on the fair value of the award and recognizes share-based compensation cost as expense over the vesting period. As share-based compensation expense recognized in the consolidated statements of income is based on awards ultimately expected to vest, the amount of expense has been reduced for actual forfeitures as they occur. The Company uses the Black-Scholes option-pricing model to determine the grant date fair value for each option grant. The Black-Scholes option-pricing model requires extensive use of subjective assumptions. See Note 26, “Share-Based Compensation” for a discussion of assumptions used in the calculation of fair values. Application of alternative assumptions could produce different estimates of the fair value of share-based compensation and, consequently, the related amounts recognized in the accompanying consolidated statements of income. The grant date fair value of restricted stock units (“RSUs”), performance share awards (“PSAs”), and restricted stock awards (“RSAs”) is based on the closing price per share of the Company’s stock on the grant date. The Company recognizes compensation expense for time-based awards on a straight-line basis and for performance-based awards on the graded-vesting method over the vesting period of the awards. |
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 as of December 29, 2019 Gift Cards Issued During Current Period But Not Redeemed (a) Revenue Recognized From Beginning Liability Balance as of January 3, 2021 Gift card liability, net $ 15,902 $ 9,895 $ (9,909 ) $ 15,888 (a) The nature of goods the Company transfers to customers at the point of sale are inventories, consisting of merchandise purchased for resale. 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, any contract performance obligations, or any material costs to obtain or fulfill a contract as of January 3, 2021. |
Cost of Sales | Cost of Sales Cost of sales includes the cost of inventory sold during the period, including the direct costs of purchased merchandise (net of discounts and allowances), distribution and supply chain costs, supplies and depreciation and amortization for distribution centers and supply chain related assets. The Company recognizes vendor allowances and merchandise volume related rebate allowances as a reduction of inventories during the period when earned and reflects the allowances as a component of cost of sales as the inventory is sold. The Company’s largest supplier accounted for approximately 42%, 40% and 34% of total purchases during 2020, 2019, and 2018, respectively. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses Selling, general and administrative expenses primarily consist of salaries, wages and benefits costs, share-based compensation, occupancy costs (including rent, property taxes, utilities, common area maintenance and insurance), advertising costs, buying cost, pre-opening and other administrative costs. The Company charges certain vendors to place advertisements in the Company’s in-store guide and circulars under a cooperative advertising program. The Company records rebates received from vendors in connection with cooperative advertising programs as a reduction to advertising costs when the allowance represents a reimbursement of a specific incremental and identifiable cost. Advertising costs are expensed as incurred. Advertising expense, net of rebates, was $54.4 million, $57.2 million and $50.2 million for 2020, 2019, and 2018, respectively. |
Depreciation and amortization | Depreciation and amortization Depreciation and amortization expense (exclusive of depreciation included in cost of sales) primarily consists of depreciation and amortization for buildings, store leasehold improvements, and equipment. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company’s deferred tax assets are subject to periodic recoverability assessments. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that more likely than not will be realized. Realization of the deferred tax assets is principally dependent upon achievement of projected future taxable income offset by deferred tax liabilities. Changes in recognition or measurement are reflected in the period in which the judgment occurs. 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. The Company recognizes the effect of uncertain income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits as part of income tax expense. |
Share Repurchases | Share Repurchases The Company has elected to retire shares repurchased to date. Shares retired become part of the pool of authorized but unissued shares. The Company has elected to record purchase price of the retired shares in excess of par value directly as a reduction of retained earnings. |
Net Income per Share | Net Income per Share Basic net income per share is calculated by dividing net income by the weighted average number of shares outstanding during the fiscal period. Diluted net income per share is based on the weighted average number of shares outstanding, plus, where applicable, shares that would have been outstanding related to dilutive options, PSAs, RSAs, and RSUs. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and the unrealized gains or losses on derivative instruments that qualify for and have been designated as cash flow hedges, for all periods presented. |
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 on the Company’s consolidated financial statements 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. Leases In February 2016, the FASB issued ASU No. 2016-02, “Leases (ASC 842).” ASU No. 2016-02 requires lessees to recognize a right-of-use asset and corresponding lease liability for all leases with terms greater than twelve months. Recognition, measurement and presentation of expenses will depend on classification as a financing or operating lease. The Company adopted the standard as of December 31, 2018, the first day of fiscal year 2019. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, permits companies not to reassess prior conclusions on lease identification, lease classification and initial direct costs. The Company did not elect the hindsight practical expedient. The adoption of the standard resulted in the recognition of operating lease assets and liabilities of approximately $1.0 billion and $1.1 billion, respectively, as of December 31, 2018, including recognition of operating lease assets and liabilities for certain third-party operated distribution center locations. Included in the measurement of the new lease assets and liabilities is the reclassification of balances historically recorded as deferred rent and unfavorable and favorable leasehold interests. Additionally, the Company recognized a cumulative effect adjustment, which increased retained earnings by $ 11.4 million, net of tax. This adjustment was driven by the derecognition of approximately $ 114.0 million of lease obligations and $ 102.6 million of net assets related to leases that had been classified as financing lease obligations under the former failed-sale leaseback guidance, and are now classified as operating leases as of the transition date. This reclassification also resulted in the recognition of rent expense beginning December 31, 2018, which was previously reported as interest expense under the former failed sale-leaseback guidance. Lastly, the adoption of this standard resulted in a change in naming convention for leases classified historically as capital leases. These leases are now referred to as finance leases. The adoption of this standard did not have any impact on the Company’s liquidity or cash flows. Refer to Note 7, “Leases”, for additional information related to the Company’s leases. |
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 year ending January 3, 2021. 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 fiscal 2020 had, or are expected to have, a material impact on the Company’s consolidated financial statements. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Sales by as Perishable and Non-Perishable | The following is a breakdown of the Company’s perishable and non-perishable sales mix: 2020 2019 2018 Perishables 57.2 % 57.7 % 57.5 % Non-Perishables 42.8 % 42.3 % 42.5 % |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Amounts Due from Banks | The amounts due from banks for these transactions at each reporting date were as follows: As Of January 3, 2021 December 29, 2019 Due from banks for debit and credit card transactions $ 93,130 $ 49,405 |
Estimated Useful Lives of Asset Classes | The following table includes the estimated useful lives of certain of the Company’s asset classes: Computer hardware and software 3 to 5 years Furniture, fixtures and equipment 7 to 20 years Leasehold improvements up Buildings 40 years |
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 as of December 29, 2019 Gift Cards Issued During Current Period But Not Redeemed (a) Revenue Recognized From Beginning Liability Balance as of January 3, 2021 Gift card liability, net $ 15,902 $ 9,895 $ (9,909 ) $ 15,888 (a) |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Receivables [Abstract] | |
Summary of Accounts Receivable | A summary of accounts receivable is as follows: As Of January 3, 2021 December 29, 2019 Landlords $ 4,715 $ 7,565 Vendors 3,275 5,378 Insurance 1,279 938 Supply rebates — 749 Other 5,546 1,083 Total $ 14,815 $ 15,713 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Summary of Prepaid Expenses and Other Current Assets | A summary of prepaid expenses and other current assets is as follows: As Of January 3, 2021 December 29, 2019 Prepaid expenses $ 15,948 $ 8,784 Restricted cash 1,744 1,470 Prepaid rent 141 15 Income tax receivable 8,827 — Other current assets 564 564 Total $ 27,224 $ 10,833 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Property Plant And Equipment [Abstract] | |
Summary of Property and Equipment, Net | A summary of property and equipment, net is as follows: As Of January 3, 2021 December 29, 2019 Land and finance lease assets $ 15,753 $ 15,753 Furniture, fixtures and equipment 745,514 666,050 Leasehold improvements 638,149 589,211 Construction in progress 27,140 48,311 Total property and equipment 1,426,556 1,319,325 Accumulated depreciation and amortization (700,056 ) (577,817 ) Property and equipment, net $ 726,500 $ 741,508 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Leases [Abstract] | |
Components of Lease Cost | Lease cost includes both the fixed and variable expenses recorded for leases. The components of lease cost are as follows: Year Ended Year Ended Classification January 3, 2021 December 29, 2019 Operating lease cost Selling, general and administrative expenses ( 1), (2) $ 191,279 $ 177,089 Finance lease cost: Amortization of Property and Equipment Depreciation and amortization 966 966 Interest on lease liabilities Interest expense 970 997 Variable lease cost Selling, general and administrative expenses ( 1) 57,789 53,731 Sublease income Selling, general and administrative expenses (1,192 ) (1,057 ) Total net lease cost $ 249,812 $ 231,726 (1) Supply chain-related amounts of $7.8 million and $8.2 million were included in cost of sales for 2020 and 2019, respectively. (2) Rent expense in fiscal year 2018 totaled $137.5 million under ASC 840. |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases is as follows: As of As of Classification January 3, 2021 December 29, 2019 Assets Operating Operating lease assets $ 1,045,408 $ 1,028,436 Finance Property and equipment, net 9,218 10,184 Total lease assets $ 1,054,626 $ 1,038,620 Liabilities Current Operating Current portion of operating lease liabilities $ 135,739 $ 106,153 Finance Current portion of finance lease liabilities 959 754 Noncurrent Operating Long-term operating lease liabilities 1,069,535 1,078,927 Finance Long-term debt and finance lease liabilities 10,459 11,419 Total lease liabilities $ 1,216,692 $ 1,197,253 January 3, 2021 December 29, 2019 Weighted average remaining lease term (years) Operating leases 9.8 10.2 Finance leases 9.7 10.7 Weighted average discount rate Operating leases 7.2 % 7.5 % Finance leases 8.4 % 8.3 % |
Supplemental Cash Flow and Other Information Related to Leases | Supplemental cash flow and other information related to leases is as follows: Year Ended Year Ended January 3, 2021 December 29, 2019 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows for operating leases $ 186,280 $ 153,292 Operating cash flows for finance leases 970 997 Lease assets obtained in exchange for lease liabilities: Finance leases $ — $ — Operating leases 118,075 160,134 |
Summary of Maturities of Lease Liabilities | A summary of maturities of lease liabilities is as follows: Operating Leases ( 1) Finance Leases Total 2021 $ 195,910 $ 1,591 $ 197,501 2022 197,145 1,671 198,816 2023 173,498 1,556 175,054 2024 175,700 1,734 177,434 2025 171,292 1,904 173,196 Thereafter 807,312 8,562 815,874 Total lease payments 1,720,857 17,018 1,737,875 Less: Imputed interest (515,583 ) (5,600 ) (521,183 ) Total lease liabilities 1,205,274 11,418 1,216,692 Less: Current portion (135,739 ) (959 ) (136,698 ) Long-term lease liabilities $ 1,069,535 $ 10,459 $ 1,079,994 (1) Operating lease payments include $184.8 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $183.0 million of legally binding minimum lease payments for leases executed but not yet commenced. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Activity and Balances in Intangible Assets | A summary of the activity and balances in intangible assets is as follows: Balance at December 30, 2018 Adjustments/ Transfers ( 1) Balance at December 29, 2019 Gross Intangible Assets Indefinite-lived trade names $ 182,937 $ — $ 182,937 Indefinite-lived liquor licenses 2,023 — 2,023 Finite-lived trade names 1,800 — 1,800 Leasehold interests 18,773 (18,773 ) — Total intangible assets $ 205,533 $ (18,773 ) $ 186,760 Accumulated Amortization Finite-lived trade names $ (1,185 ) $ (180 ) $ (1,365 ) Leasehold interests (9,545 ) 9,545 — Total accumulated amortization $ (10,730 ) $ 9,365 $ (1,365 ) (1) As of the first day of fiscal 2019, the favorable leasehold interest balance was reclassified into the new operating lease asset balance due to the adoption of ASC 842. As a result, the amortization of these assets is recorded as part of the single rent expense to be recorded on a monthly basis for each lease. Refer to Note 7, “Leases”, for further details. Balance at December 29, 2019 Adjustments/ Transfers Balance at January 3, 2021 Gross Intangible Assets Indefinite-lived trade names $ 182,937 $ — $ 182,937 Indefinite-lived liquor licenses 2,023 — 2,023 Finite-lived trade names 1,800 (800 ) 1,000 Total intangible assets $ 186,760 $ (800 ) $ 185,960 Accumulated Amortization Finite-lived trade names $ (1,365 ) $ 365 $ (1,000 ) Total accumulated amortization $ (1,365 ) $ 365 $ (1,000 ) |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Activity and Balance in Goodwill | A summary of the activity and balance in goodwill is as follows: Balance at December 29, 2019 Adjustments Balance at January 3, 2021 Goodwill $ 368,078 $ 800 $ 368,878 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Payables And Accruals [Abstract] | |
Summary of Accrued Liabilities | A summary of accrued liabilities is as follows: As Of January 3, 2021 December 29, 2019 Self-insurance reserves $ 25,227 $ 22,806 Accrued occupancy related (CAM, property taxes, etc.) 19,939 16,211 Gift cards, net of breakage 15,888 15,902 Accrued sales and use tax 14,712 12,010 Other accrued liabilities 67,636 69,553 Total $ 143,402 $ 136,482 |
Accrued Salaries and Benefits (
Accrued Salaries and Benefits (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Payables And Accruals [Abstract] | |
Summary of Accrued Salaries and Benefits | A summary of accrued salaries and benefits is as follows: As Of January 3, 2021 December 29, 2019 Bonuses $ 41,637 $ 16,800 Payroll 18,171 15,667 Vacation 14,669 11,880 Severance and other 2,218 4,232 Total $ 76,695 $ 48,579 |
Long-Term Debt and Finance Le_2
Long-Term Debt and Finance Lease Liabilities (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Long Term Debt And Finance Lease Liabilities [Abstract] | |
Summary of Long-Term Debt | A summary of long-term debt is as follows: As Of Facility Maturity Interest January 3, 2021 December 29, 2019 Senior secured debt $700.0 million Credit Agreement March 27, 2023 Variable $ 250,000 $ 538,000 Finance lease liabilities (see Note 7, "Leases") Various n/a 10,459 11,419 Long-term debt and finance lease liabilities $ 260,459 $ 549,419 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Other Long-Term Liabilities | A summary of other long-term liabilities is as follows: As Of January 3, 2021 December 29, 2019 Long-term portion of self-insurance reserves $ 23,291 $ 24,058 Other 17,621 17,459 Total $ 40,912 $ 41,517 |
Defined Contribution Plan (Tabl
Defined Contribution Plan (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Postemployment Benefits [Abstract] | |
Total Expense Recorded for Matching under Defined Contribution Plans | Total expense recorded for the matching under the Plan: Year Ended January 3, 2021 December 29, 2019 December 30, 2018 $ 6,588 $ 5,756 $ 4,981 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Provision | The income tax provision consists of the following: Year Ended January 3, 2021 December 29, 2019 December 30, 2018 U.S. Federal—current $ 63,957 $ 36,091 $ 9,319 U.S. Federal—deferred 3,725 186 19,441 U.S. Federal—total 67,682 36,277 28,760 State—current 20,442 8,649 5,271 State—deferred 1,304 1,613 3,229 State—total 21,746 10,262 8,500 Total provision $ 89,428 $ 46,539 $ 37,260 |
Tax Rate Reconciliation | Income tax provision differed from the amounts computed by applying the U.S. federal income tax rate to pre-tax income as a result of the following: Year Ended January 3, 2021 December 29, 2019 December 30, 2018 Federal statutory rate 21.0 % 21.0 % 21.0 % Increase (decrease) in income taxes resulting from: State income taxes, net of federal benefit 4.6 4.4 3.8 Enhanced charitable contribution impact (1.0 ) (0.7 ) — Excess tax benefits from share based payments — — (5.2 ) Change in uncertain tax position reserves 0.1 (1.1 ) 1.5 Amended returns (1.0 ) — — Benefit of federal tax credit (0.9 ) (1.6 ) (0.7 ) Other, net 0.9 1.7 (1.4 ) Effective tax rate 23.7 % 23.7 % 19.0 % |
Components of Deferred Tax Assets and Deferred Tax Liabilities | Significant components of the Company’s deferred tax assets and deferred tax liabilities are as follows: As Of January 3, 2021 December 29, 2019 Deferred tax assets Employee benefits $ 19,498 $ 14,663 Tax credits 270 427 Operating leases ( 1) 309,756 303,950 Other lease related ( 1) 4,955 5,177 Other accrued liabilities 3,926 5,027 Charitable contribution carryforward 1,028 7,819 Inventories and other 4,504 3,520 Total gross deferred tax assets 343,937 340,583 Deferred tax liabilities Depreciation and amortization (93,738 ) (97,309 ) Intangible assets (39,602 ) (33,293 ) Operating leases ( 1) (268,670 ) (264,337 ) Total gross deferred tax liabilities (402,010 ) (394,939 ) Net deferred tax (liability) / asset $ (58,073 ) $ (54,356 ) (1) The deferred tax assets and liabilities disclosure at December 29, 2019 has been adjusted to reflect the gross deferred tax right-of-use asset and related gross deferred lease liability recognized in accordance with ASC 842. |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: As Of January 3, 2021 December 29, 2019 December 30, 2018 Beginning balance $ 1,343 $ 3,658 $ 794 Additions based on tax positions related to the current year 16 289 2,864 Additions based on tax positions related to prior years 647 — — Reductions for tax positions for prior years (203 ) (2,604 ) — Ending balance $ 1,803 $ 1,343 $ 3,658 |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Equity [Abstract] | |
Schedule of Options Exercised and Other Shares in Exchange for Issuance of Shares of Common Stock | The following table outlines the options exercised in exchange for the issuance of shares of common stock during 2020, 2019, and 2018. Year Ended January 3, 2021 December 29, 2019 December 30, 2018 Options exercised 59,561 316,493 2,824,460 Other share issuances under stock plans 440,956 506,093 403,233 |
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): Year Ended January 3, 2021 December 29, 2019 Number of common shares acquired — 7,950,858 Average price per common share acquired $ — $ 22.18 Total cost of common shares acquired $ — $ 176,310 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
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): Year Ended January 3, 2021 December 29, 2019 December 30, 2018 Basic net income per share: Net income $ 287,450 $ 149,629 $ 158,536 Weighted average shares outstanding 117,821 119,368 128,827 Basic net income per share $ 2.44 $ 1.25 $ 1.23 Diluted net income per share: Net income $ 287,450 $ 149,629 $ 158,536 Weighted average shares outstanding 117,821 119,368 128,827 Dilutive effect of equity-based awards: Assumed exercise of options to purchase shares 16 52 429 Restricted Stock Units 341 178 220 Restricted Stock Awards 9 55 136 Performance Share Awards 37 89 164 Weighted average shares and equivalent shares outstanding 118,224 119,742 129,776 Diluted net income per share $ 2.43 $ 1.25 $ 1.22 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
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: As of January 3, 2021 As of December 29, 2019 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Interest rate swaps Accrued liabilities $ 5,695 Accrued liabilities $ 1,736 Interest rate swaps Other long-term liabilities 5,756 Other long-term liabilities 4,569 |
Summary of Gains and Losses 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, net on the consolidated statement of income. The following table summarizes these gains and losses for 2020 and 2019: Year Ended January 3, 2021 December 29, 2019 Consolidated Statements of Income Classification Interest expense (income), net $ 4,307 $ (256 ) |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
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 year ended January 3, 2021: Cash Flow Hedges Balance at December 30, 2018 $ 1,134 Other comprehensive income (loss), net of tax Unrealized losses on cash flow hedging activities, net of income tax of ($2,078) (6,006 ) Reclassification of net gains on cash flow hedges to net income, net of income tax of $66 190 Total other comprehensive income (loss) (5,816 ) Balance at December 29, 2019 $ (4,682 ) Other comprehensive income (loss), net of tax Unrealized losses on cash flow hedging activities, net of income tax of ($205) (592 ) Reclassification of net losses on cash flow hedges to net income, net of income tax of ($1,107) (3,200 ) Total other comprehensive income (loss) (3,792 ) Balance at January 3, 2021 $ (8,474 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present the Company’s fair value hierarchy for the Company’s financial assets and liabilities measured at fair value on a recurring basis as of January 3, 2021 and December 29, 2019: January 3, 2021 Level 1 Level 2 Level 3 Total Long-term debt $ — $ 250,000 $ — $ 250,000 Interest rate swap liability — 11,451 — 11,451 Total liabilities $ — $ 261,451 $ — $ 261,451 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 liabilities $ — $ 544,305 $ — $ 544,305 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Segment Reporting [Abstract] | |
Summary of Disaggregation of Revenue | In accordance with ASC 606, the following table represents a disaggregation of revenue for fiscal 2020 and 2019. Year Ended January 3, 2021 December 29, 2019 Perishables $ 3,700,878 57.2 % $ 3,252,928 57.7 % Non-Perishables 2,767,881 42.8 % 2,381,907 42.3 % Net Sales $ 6,468,759 100.0 % $ 5,634,835 100.0 % |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Awards Granted to Officers, Directors and Team Members | The Company granted to certain officers, directors and team members the following awards during 2019, under the 2013 Incentive Plan: Grant Date Award Type Shares of common stock Exercise Price Grant date fair value March 4, 2019 RSUs 386,115 — $ 23.12 PSAs 95,768 — $ 23.12 Options 53,866 $ 23.12 $ 7.63 May 13, 2019 RSUs 45,682 — $ 21.70 PSAs 2,999 — $ 21.70 June 24, 2019 RSUs 177,975 — $ 18.64 PSAs 75,000 — $ 18.64 August 12, 2019 RSUs 12,313 — $ 17.54 December 3, 2019 RSUs 3,159 — $ 20.22 The Company granted to certain officers, directors and team members the following awards during 2020, under the 2013 Incentive Plan: Grant Date Award Type Shares of common stock Exercise Price Grant date fair value March 9, 2020 RSUs 485,367 — $ 16.47 PSAs 174,902 — $ 16.47 Options 1,055,907 $ 16.47 $ 4.86 May 12, 2020 RSUs 66,550 — $ 25.58 PSAs 11,389 — $ 25.58 Options 15,569 $ 25.58 $ 8.03 August 10, 2020 RSUs 35,655 — $ 24.77 PSAs 5,762 — $ 24.77 Options 14,052 $ 24.77 $ 7.74 |
Estimated Fair Values of Options Granted | The estimated weighted average fair values of options granted during 2020, 2019, and 2018 are $4.94, $7.63 and $7.80, respectively, and were calculated using the following assumptions in the table below: 2020 2019 2018 Dividend yield 0.00 % 0.00 % 0.00 % Expected volatility 34.80 % 34.89 % 35.20 % Risk free interest rate 0.46 % 2.53 % 2.76 % Expected term, in years 4.50 4.50 4.50 |
Summary of Grant Date Weighted Average Fair Value of Options Granted and Options Forfeited | The following table summarizes grant date weighted average fair value of options granted and options forfeited: Year Ended January 3, 2021 December 29, 2019 December 30, 2018 Grant date weighted average fair value of options granted $ 4.94 $ 7.63 $ 7.80 Grant date weighted average fair value of options forfeited $ 8.94 $ 7.03 $ 9.32 |
Summary of Option Activity | The following table summarizes option activity during 2020: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value Outstanding at December 29, 2019 523,725 $ 29.84 Granted 1,085,528 16.71 Forfeited (219,484 ) 31.41 Exercised (59,561 ) 22.56 $ 156 Outstanding at January 3, 2021 1,330,208 19.19 5.30 $ 3,784 Exercisable—January 3, 2021 234,703 30.13 1.27 $ — Vested/Expected to vest—January 3, 2021 1,330,208 $ 19.19 5.30 $ 3,784 |
Summary of Weighted Average Grant Date Fair Value of RSUs Awarded | The following table summarizes the weighted average grant date fair value of RSUs awarded during 2020, 2019, and 2018: Year Ended January 3, 2021 December 29, 2019 December 30, 2018 RSUs awarded $ 18.01 $ 21.62 $ 24.80 |
Summary of RSUs Activity | The following table summarizes RSU activity during 2020: Number of RSUs Weighted Average Grant Date Fair Value Outstanding at December 29, 2019 725,653 $ 22.02 Awarded 587,572 18.01 Released (350,206 ) 22.23 Forfeited (60,761 ) 20.55 Outstanding at January 3, 2021 902,258 $ 19.43 |
Summary of PSA Activity | The following table summarizes PSA activity during 2020: Number of PSAs Weighted Average Grant Date Fair Value Outstanding at December 29, 2019 169,771 $ 20.26 Awarded 192,053 17.26 Released (35,697 ) 18.11 Forfeited (10,726 ) 24.08 PSA earned — — PSAs not earned — — Outstanding at January 3, 2021 315,401 $ 18.54 |
Summary of RSAs Activity | The following table summarizes RSA activity during 2020: Number of RSAs Weighted Average Grant Date Fair Value Outstanding at December 29, 2019 55,053 $ 18.11 Awarded — — Released (55,053 ) 18.11 Forfeited — — Outstanding at January 3, 2021 — $ — |
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: Year Ended January 3, 2021 December 29, 2019 December 30, 2018 Share-based compensation expense before income taxes $ 14,339 $ 8,949 $ 14,512 Income tax benefit (2,662 ) (2,093 ) (3,383 ) Net share-based compensation expense $ 11,677 $ 6,856 $ 11,129 |
Summary of Total Unrecognized Compensation Expense and Remaining Weighted Average Recognition Period Related to Outstanding Share-Based Awards | As of January 3, 2021, total unrecognized compensation expense and remaining weighted average recognition period related to outstanding share-based awards were as follows: Unrecognized compensation expense Remaining weighted average recognition period Options $ 3,971 2.2 RSUs 10,886 1.6 PSAs 6,709 1.7 RSAs — — Total unrecognized compensation expense at January 3, 2021 $ 21,566 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Unaudited Consolidated Statements of Income Data | The following table sets forth certain of the Company’s unaudited consolidated statements of income data for each of the fiscal quarters in 2020 and 2019. Fiscal Quarter Ended January 3, 2021 September 27, 2020 June 28, 2020 March 29, 2020 December 29, 2019 September 29, 2019 June 30, 2019 March 31, 2019 (dollars in thousands, except per share amounts) Net sales $ 1,601,834 $ 1,577,598 $ 1,642,788 $ 1,646,539 $ 1,364,991 $ 1,440,222 $ 1,415,736 $ 1,413,887 Gross profit $ 588,029 $ 584,769 $ 612,659 $ 593,832 $ 468,963 $ 476,725 $ 464,782 $ 484,349 Income from operations $ 92,932 $ 78,381 $ 92,763 $ 127,589 $ 46,915 $ 39,557 $ 51,332 $ 79,556 Net income $ 68,397 $ 60,241 $ 67,002 $ 91,810 $ 31,634 $ 26,260 $ 35,343 $ 56,392 Net income per share: Basic $ 0.58 $ 0.51 $ 0.57 $ 0.78 $ 0.27 $ 0.22 $ 0.30 $ 0.46 Diluted $ 0.58 $ 0.51 $ 0.57 $ 0.78 $ 0.27 $ 0.22 $ 0.30 $ 0.46 |
Organization and Description _2
Organization and Description of Business - Additional Information (Detail) | Jan. 03, 2021StoreState |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Operating stores | Store | 362 |
Number of states entity operates | State | 23 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) | 12 Months Ended |
Jan. 03, 2021Segment | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of reportable segment | 1 |
Number of operating segment | 1 |
Basis of Presentation - Summary
Basis of Presentation - Summary of Sales by as Perishable and Non-Perishable (Detail) - Sales Revenue, Goods, Net [Member] - Product Concentration Risk [Member] | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Revenue from External Customer [Line Items] | |||
Percentage of perishable and non-perishable sales mix | 100.00% | 100.00% | |
Perishables [Member] | |||
Revenue from External Customer [Line Items] | |||
Percentage of perishable and non-perishable sales mix | 57.20% | 57.70% | 57.50% |
Non-Perishables [Member] | |||
Revenue from External Customer [Line Items] | |||
Percentage of perishable and non-perishable sales mix | 42.80% | 42.30% | 42.50% |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) | May 29, 2012 | Jan. 03, 2021USD ($) | Dec. 29, 2019USD ($) | Dec. 30, 2018USD ($)Store | Dec. 31, 2018USD ($) |
Summary Of Significant Accounting Policy [Line Items] | |||||
Fiscal period duration | 371 days | 364 days | 364 days | ||
Impairment, goodwill | $ 0 | $ 0 | $ 0 | ||
Impairment, long lived assets | $ 0 | ||||
Number of stores closed | Store | 2 | ||||
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | ||||
Option to extend lease term, Description | The lease term includes the initial contractual term as well as any options to extend the lease when it is reasonably certain that the Company will exercise that option. | ||||
Advertising expense, net of rebates | $ 54,400,000 | 57,200,000 | $ 50,200,000 | ||
Percentage of income tax to be realized | 50.00% | ||||
Operating lease assets | $ 1,045,408,000 | 1,028,436,000 | |||
Operating lease liabilities | 1,205,274,000 | ||||
Increased retained earnings | $ 203,001,000 | $ (84,449,000) | |||
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 | ||||
ASU No. 2016-02 [Member] | |||||
Summary Of Significant Accounting Policy [Line Items] | |||||
Change in accounting principle, ASU, adopted | true | ||||
Change in accounting principle, ASU, Adoption Date | Dec. 31, 2018 | ||||
Operating lease assets | $ 1,000,000,000 | ||||
Operating lease liabilities | 1,100,000,000 | ||||
Derecognition of financial lease obligations | $ 114,000,000 | ||||
Net assets, related to financial lease obligations | $ 102,600,000 | ||||
ASU No. 2016-02 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||
Summary Of Significant Accounting Policy [Line Items] | |||||
Increased retained earnings | $ 11,400,000 | ||||
Cost of Goods, Total [Member] | Supplier Concentration Risk [Member] | |||||
Summary Of Significant Accounting Policy [Line Items] | |||||
Percentage of supplier accountability on total purchase | 42.00% | 40.00% | 34.00% | ||
Minimum [Member] | |||||
Summary Of Significant Accounting Policy [Line Items] | |||||
Renewal term of lease | 1 year | ||||
Maximum [Member] | |||||
Summary Of Significant Accounting Policy [Line Items] | |||||
Renewal term of lease | 20 years | ||||
Sunflower Farmers Markets, Inc. [Member] | Trade name [Member] | |||||
Summary Of Significant Accounting Policy [Line Items] | |||||
Weighted average useful life | 10 years | ||||
Inventory Valuation Reserve [Member] | |||||
Summary Of Significant Accounting Policy [Line Items] | |||||
Allowances or reserves for inventories | $ 0 | $ 0 | |||
Prepaid Expenses and Other Current Assets [Member] | |||||
Summary Of Significant Accounting Policy [Line Items] | |||||
Restricted cash related to defined benefit plan forfeitures and healthcare, general liability and workers’ compensation plan benefits | $ 1,700,000 | $ 1,500,000 |
Significant Accounting Polici_5
Significant Accounting Policies - Amounts Due from Banks (Detail) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Cash And Cash Equivalents [Abstract] | ||
Due from banks for debit and credit card transactions | $ 93,130 | $ 49,405 |
Significant Accounting Polici_6
Significant Accounting Policies - Estimated Useful Lives of Asset Classes (Detail) | 12 Months Ended |
Jan. 03, 2021 | |
Computer hardware and software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Computer hardware and software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Furniture, fixtures and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
Furniture, fixtures and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 20 years |
Leasehold improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 15 years |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 40 years |
Significant Accounting Polici_7
Significant Accounting Policies - Schedule of Estimated Breakage Revenue Recognized (Detail) $ in Thousands | 12 Months Ended | |
Jan. 03, 2021USD ($) | ||
Disaggregation Of Revenue [Line Items] | ||
Net gift card liability beginning balance | $ 15,902 | |
Net gift card liability ending balance | 15,888 | |
Gift Card Revenue [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net gift card liability beginning balance | 15,902 | |
Gift cards issued during current period but not redeemed | 9,895 | [1] |
Revenue recognized from beginning liability | (9,909) | |
Net gift card liability ending balance | $ 15,888 | |
[1] | net of estimated breakage |
Accounts Receivable - Summary o
Accounts Receivable - Summary of Accounts Receivable (Detail) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Receivables [Abstract] | ||
Landlords | $ 4,715 | $ 7,565 |
Vendors | 3,275 | 5,378 |
Insurance | 1,279 | 938 |
Supply rebates | 749 | |
Other | 5,546 | 1,083 |
Total | $ 14,815 | $ 15,713 |
Accounts Receivable - Additiona
Accounts Receivable - Additional Information (Detail) - USD ($) $ in Millions | Jan. 03, 2021 | Dec. 29, 2019 |
Vendor [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for vendor receivables | $ 0.4 | $ 0.5 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Summary of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 15,948 | $ 8,784 |
Restricted cash | 1,744 | 1,470 |
Prepaid rent | 141 | 15 |
Income tax receivable | 8,827 | |
Other current assets | 564 | 564 |
Total | $ 27,224 | $ 10,833 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Property Plant And Equipment Net [Abstract] | ||
Land and finance lease assets | $ 15,753 | $ 15,753 |
Furniture, fixtures and equipment | 745,514 | 666,050 |
Leasehold improvements | 638,149 | 589,211 |
Construction in progress | 27,140 | 48,311 |
Total property and equipment | 1,426,556 | 1,319,325 |
Accumulated depreciation and amortization | (700,056) | (577,817) |
Property and equipment, net | $ 726,500 | $ 741,508 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Property Plant And Equipment Net [Abstract] | |||
Depreciation expense | $ 125,600,000 | $ 121,300,000 | $ 110,300,000 |
Impairment expense | $ 0 | $ 4,100,000 | $ 4,600,000 |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 03, 2021 | Dec. 29, 2019 | |
Finance lease cost: | ||
Total net lease cost | $ 249,812 | $ 231,726 |
Selling, General and Administrative Expenses [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating lease cost | 191,279 | 177,089 |
Finance lease cost: | ||
Variable lease cost | 57,789 | 53,731 |
Sublease income | (1,192) | (1,057) |
Depreciation and Amortization [Member] | ||
Finance lease cost: | ||
Amortization of Property and Equipment | 966 | 966 |
Interest Expense [Member] | ||
Finance lease cost: | ||
Interest on lease liabilities | $ 970 | $ 997 |
Leases - Components of Lease _2
Leases - Components of Lease Cost (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Lessee Lease Description [Line Items] | |||
Rent expense under ASC 840 | $ 137.5 | ||
Cost of Sales [Member] | |||
Lessee Lease Description [Line Items] | |||
Supply chain-related amounts | $ 7.8 | $ 8.2 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Leases [Abstract] | ||
Operating lease assets | $ 1,045,408 | $ 1,028,436 |
Finance, Assets | $ 9,218 | $ 10,184 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | us-gaap:PropertyPlantAndEquipmentNet |
Total lease assets | $ 1,054,626 | $ 1,038,620 |
Operating, Current | 135,739 | 106,153 |
Finance, Current | 959 | 754 |
Operating, Noncurrent | 1,069,535 | 1,078,927 |
Finance, Noncurrent | $ 10,459 | $ 11,419 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | sfm:LongTermDebtAndFinanceLeaseLiabilitiesNoncurrent | sfm:LongTermDebtAndFinanceLeaseLiabilitiesNoncurrent |
Total lease liabilities | $ 1,216,692 | $ 1,197,253 |
Weighted average remaining lease term (years) | ||
Operating leases | 9 years 9 months 18 days | 10 years 2 months 12 days |
Finance leases | 9 years 8 months 12 days | 10 years 8 months 12 days |
Weighted average discount rate | ||
Operating leases | 7.20% | 7.50% |
Finance leases | 8.40% | 8.30% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow and Other Information Related to Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 03, 2021 | Dec. 29, 2019 | |
Cash paid for amounts included in measurement of lease liabilities: | ||
Operating cash flows for operating leases | $ 186,280 | $ 153,292 |
Operating cash flows for finance leases | 970 | 997 |
Lease assets obtained in exchange for lease liabilities: | ||
Leased assets obtained in exchange for new operating lease liabilities | $ 118,075 | $ 160,134 |
Leases - Summary of Maturities
Leases - Summary of Maturities of Lease Liabilities (Detail) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Operating Leases | ||
2021 | $ 195,910 | |
2022 | 197,145 | |
2023 | 173,498 | |
2024 | 175,700 | |
2025 | 171,292 | |
Thereafter | 807,312 | |
Total lease payments | 1,720,857 | |
Less: Imputed interest | (515,583) | |
Total lease liabilities | 1,205,274 | |
Less: Current portion | (135,739) | $ (106,153) |
Long-term operating lease liabilities | 1,069,535 | 1,078,927 |
Finance Leases | ||
2021 | 1,591 | |
2022 | 1,671 | |
2023 | 1,556 | |
2024 | 1,734 | |
2025 | 1,904 | |
Thereafter | 8,562 | |
Total lease payments | 17,018 | |
Less: Imputed interest | (5,600) | |
Total lease liabilities | 11,418 | |
Less: Current portion | (959) | (754) |
Long-term finance lease liabilities | 10,459 | $ 11,419 |
Total | ||
2021 | 197,501 | |
2022 | 198,816 | |
2023 | 175,054 | |
2024 | 177,434 | |
2025 | 173,196 | |
Thereafter | 815,874 | |
Total lease payments | 1,737,875 | |
Less: Imputed interest | (521,183) | |
Total lease liabilities | 1,216,692 | |
Less: Current portion | (136,698) | |
Long-term lease liabilities | $ 1,079,994 |
Leases - Summary of Maturitie_2
Leases - Summary of Maturities of Lease Liabilities (Parenthetical) (Detail) $ in Millions | Jan. 03, 2021USD ($) |
Leases [Abstract] | |
Operating lease option to extend reasonably certain of being exercised | $ 184.8 |
Operating lease legally binding minimum payments for leases that have not yet commenced | $ 183 |
Intangible Assets - Summary of
Intangible Assets - Summary of Activity and Balances in Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 03, 2021 | Dec. 29, 2019 | |
Intangible Assets [Line Items] | ||
Gross Intangible Assets, Beginning Balance | $ 186,760 | $ 205,533 |
Gross Intangible Assets, Adjustments/Transfers | (800) | (18,773) |
Gross Intangible Assets, Ending Balance | 185,960 | 186,760 |
Accumulated Amortization, Beginning Balance | (1,365) | (10,730) |
Accumulated Amortization, Adjustments/Transfers | 365 | 9,365 |
Accumulated Amortization, Ending Balance | (1,000) | (1,365) |
Trade name [Member] | ||
Intangible Assets [Line Items] | ||
Finite-lived Gross Intangible Assets, Beginning Balance | 1,800 | 1,800 |
Finite-lived Gross Intangible Assets, Adjustments/Transfers | (800) | 0 |
Finite-lived Gross Intangible Assets, Ending Balance | 1,000 | 1,800 |
Accumulated Amortization, Beginning Balance | (1,365) | (1,185) |
Accumulated Amortization, Adjustments/Transfers | 365 | (180) |
Accumulated Amortization, Ending Balance | (1,000) | (1,365) |
Leasehold interests [Member] | ||
Intangible Assets [Line Items] | ||
Finite-lived Gross Intangible Assets, Beginning Balance | 0 | 18,773 |
Finite-lived Gross Intangible Assets, Adjustments/Transfers | (18,773) | |
Finite-lived Gross Intangible Assets, Ending Balance | 0 | |
Accumulated Amortization, Beginning Balance | 0 | (9,545) |
Accumulated Amortization, Adjustments/Transfers | 9,545 | |
Accumulated Amortization, Ending Balance | 0 | |
Indefinite-lived trade names [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Gross Intangible Assets, Beginning Balance | 182,937 | 182,937 |
Indefinite-lived Gross Intangible Assets, Adjustments/Transfers | 0 | 0 |
Indefinite-lived Gross Intangible Assets, Ending Balance | 182,937 | 182,937 |
Liquor licenses [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Gross Intangible Assets, Beginning Balance | 2,023 | 2,023 |
Indefinite-lived Gross Intangible Assets, Adjustments/Transfers | 0 | 0 |
Indefinite-lived Gross Intangible Assets, Ending Balance | $ 2,023 | $ 2,023 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Finite Lived Intangible Assets Net [Abstract] | |||
Amortization expense | $ (0.4) | $ 0.2 | $ 1.4 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) | Jan. 03, 2021 | Dec. 29, 2019 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 368,878,000 | $ 368,078,000 |
Accumulated goodwill impairment losses | $ 0 | $ 0 |
Goodwill - Summary of Activity
Goodwill - Summary of Activity and Balance in Goodwill (Detail) $ in Thousands | 12 Months Ended |
Jan. 03, 2021USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill beginning balance | $ 368,078 |
Adjustments | 800 |
Goodwill ending balance | $ 368,878 |
Other Assets - Additional Infor
Other Assets - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Other assets | $ 14,698 | $ 11,727 |
Accrued Liabilities - Summary o
Accrued Liabilities - Summary of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Payables And Accruals [Abstract] | ||
Self-insurance reserves | $ 25,227 | $ 22,806 |
Accrued occupancy related (CAM, property taxes, etc.) | 19,939 | 16,211 |
Gift cards, net of breakage | 15,888 | 15,902 |
Accrued sales and use tax | 14,712 | 12,010 |
Other accrued liabilities | 67,636 | 69,553 |
Total | $ 143,402 | $ 136,482 |
Accrued Salaries and Benefits -
Accrued Salaries and Benefits - Summary of Accrued Salaries and Benefits (Detail) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Payables And Accruals [Abstract] | ||
Bonuses | $ 41,637 | $ 16,800 |
Payroll | 18,171 | 15,667 |
Vacation | 14,669 | 11,880 |
Severance and other | 2,218 | 4,232 |
Total | $ 76,695 | $ 48,579 |
Long-Term Debt and Finance Le_3
Long-Term Debt and Finance Lease Liabilities - Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 03, 2021 | Dec. 29, 2019 | |
Long Term Debt And Finance Lease Liabilities [Line Items] | ||
Long-term finance lease liabilities | $ 10,459 | $ 11,419 |
Long-term debt and finance lease liabilities | 260,459 | 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 | $ 250,000 | $ 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 (Parenthetical) (Detail) | Jan. 03, 2021USD ($) |
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 | Apr. 17, 2015 | Apr. 01, 2018 | Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 |
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||
Borrowings during the period | $ 265,405,000 | $ 233,000,000 | ||||
Amended and Restated Credit Agreement [Member] | ||||||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||
Borrowings under credit facilities | $ 250,000,000 | 538,000,000 | ||||
Fixed portion of outstanding debt percentage | 100.00% | |||||
Participation fee | 1.25% | |||||
Issuance fee | 0.125% | |||||
Credit facility termination date | Mar. 27, 2023 | |||||
Borrowings during the period | $ 0 | 265,400,000 | ||||
Principal payments on the Credit Facility | $ 288,000,000 | $ 180,400,000 | ||||
Net leverage ratio | 325.00% | |||||
Interest coverage ratio | 175.00% | |||||
Former Credit Facility [Member] | ||||||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||
Credit facility maximum borrowing capacity | $ 450,000,000 | |||||
Credit facility termination date | Apr. 17, 2020 | |||||
Former Credit Facility [Member] | Swingline Loan Subfacility [Member] | ||||||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||
Debt instrument face amount | 15,000,000 | |||||
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] | ||||||
Loss on early extinguishment of debt | $ 300,000 | |||||
Letters of credit issued | $ 34,200,000 | |||||
Line of credit interest rate terms | LIBOR plus 1.50% per annum or prime plus 0.5%. 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 Subfacility [Member] | ||||||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||
Debt instrument face amount | $ 15,000,000 | |||||
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 | |||||
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 | |||||
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 | |||||
Borrowings under credit facilities | $ 0 | |||||
Line of credit interest rate terms | LIBOR plus 1.50% per annum, or a base rate plus 0.50% per annum. The interest rate margins were subject to adjustment pursuant to a pricing grid based on the Company’s total gross leverage ratio, as defined in the Former Credit Facility. | |||||
Credit facility unused commitment fee percentage | 0.20% | |||||
Senior Lien [Member] | Secured Debt [Member] | Former Credit Facility [Member] | LIBOR [Member] | ||||||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||
Interest rate spread on base rate | 1.50% | |||||
Senior Lien [Member] | Secured Debt [Member] | Former Credit Facility [Member] | Alternate Base Rate [Member] | ||||||
Long Term Debt And Finance Lease Liabilities [Line Items] | ||||||
Interest rate spread on base rate | 0.50% | |||||
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 |
Other Long-Term Liabilities - S
Other Long-Term Liabilities - Summary of Other Long-Term Liabilities (Detail) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Long-term portion of self-insurance reserves | $ 23,291 | $ 24,058 |
Other | 17,621 | 17,459 |
Total | $ 40,912 | $ 41,517 |
Self-Insurance Programs - Addit
Self-Insurance Programs - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Insurance [Line Items] | ||
Accounts receivables | $ 14,815 | $ 15,713 |
Insurance Receivable [Member] | ||
Insurance [Line Items] | ||
Accounts receivables | 1,000 | 1,600 |
General liability, worker’s compensation and team member health benefit liabilities | $ 48,500 | $ 46,900 |
Defined Contribution Plan - Add
Defined Contribution Plan - Additional Information (Detail) | 12 Months Ended |
Jan. 03, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Matching contribution by employer | 50.00% |
Percentage of eligible compensation for which employer makes matching contribution | 6.00% |
Defined Contribution Plan - Tot
Defined Contribution Plan - Total Expense Recorded for Matching under Defined Contribution Plans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |||
Total expenses for matching under defined contribution plans | $ 6,588 | $ 5,756 | $ 4,981 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 30, 2017 | |
Income Tax Contingency [Line Items] | |||||
Corporate federal income tax rate | 21.00% | 21.00% | 21.00% | 35.00% | |
Non-cash income tax benefit resulting from reduction in deferred tax liability | $ 2,600,000 | ||||
Effective income tax rate | 23.70% | 23.70% | 19.00% | ||
Excess tax benefit (detriment) resulting from shares-based awards credited to stockholders' equity | $ (500,000) | $ (1,600,000) | $ 12,400,000 | ||
Unrecognized tax benefits (tax effected) that would impact the effective tax rate if recognized | 1,800,000 | $ 1,300,000 | |||
Anticipated decrease in total unrecognized tax benefits during next twelve months | $ 0 | ||||
Federal [Member] | Earliest Tax Year [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Open year for general statute of limitations | 2017 | ||||
Federal [Member] | Latest Tax Year [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Open year for general statute of limitations | 2019 | ||||
State [Member] | Earliest Tax Year [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Open year for general statute of limitations | 2016 | ||||
State [Member] | Latest Tax Year [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Open year for general statute of limitations | 2019 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
U.S. Federal—current | $ 63,957 | $ 36,091 | $ 9,319 |
U.S. Federal—deferred | 3,725 | 186 | 19,441 |
U.S. Federal—total | 67,682 | 36,277 | 28,760 |
State—current | 20,442 | 8,649 | 5,271 |
State—deferred | 1,304 | 1,613 | 3,229 |
State—total | 21,746 | 10,262 | 8,500 |
Total provision | $ 89,428 | $ 46,539 | $ 37,260 |
Income Taxes - Tax Rate Reconci
Income Taxes - Tax Rate Reconciliation (Detail) | 12 Months Ended | |||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 30, 2017 | |
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract] | ||||
Federal statutory rate | 21.00% | 21.00% | 21.00% | 35.00% |
State income taxes, net of federal benefit | 4.60% | 4.40% | 3.80% | |
Enhanced charitable contribution impact | (1.00%) | (0.70%) | ||
Excess tax benefits from share based payments | (5.20%) | |||
Change in uncertain tax position reserves | 0.10% | (1.10%) | 1.50% | |
Amended returns | (1.00%) | |||
Benefit of federal tax credit | (0.90%) | (1.60%) | (0.70%) | |
Other, net | 0.90% | 1.70% | (1.40%) | |
Effective tax rate | 23.70% | 23.70% | 19.00% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 | |
Deferred tax assets | |||
Employee benefits | $ 19,498 | $ 14,663 | |
Tax credits | 270 | 427 | |
Operating leases | [1] | 309,756 | 303,950 |
Other lease related | [1] | 4,955 | 5,177 |
Other accrued liabilities | 3,926 | 5,027 | |
Charitable contribution carryforward | 1,028 | 7,819 | |
Inventories and other | 4,504 | 3,520 | |
Total gross deferred tax assets | 343,937 | 340,583 | |
Deferred tax liabilities | |||
Depreciation and amortization | (93,738) | (97,309) | |
Intangible assets | (39,602) | (33,293) | |
Operating leases | [1] | (268,670) | (264,337) |
Total gross deferred tax liabilities | (402,010) | (394,939) | |
Net deferred tax (liability) / asset | $ (58,073) | $ (54,356) | |
[1] | The deferred tax assets and liabilities disclosure at December 29, 2019 has been adjusted to reflect the gross deferred tax right-of-use asset and related gross deferred lease liability recognized in accordance with ASC 842. |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Reconciliation Of Unrecognized Tax Benefits Excluding Amounts Pertaining To Examined Tax Returns Roll Forward | |||
Beginning balance | $ 1,343 | $ 3,658 | $ 794 |
Additions based on tax positions related to the current year | 16 | 289 | 2,864 |
Additions based on tax positions related to prior years | 647 | ||
Reductions for tax positions for prior years | (203) | (2,604) | |
Ending balance | $ 1,803 | $ 1,343 | $ 3,658 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) - Coffee Supplier [Member] - USD ($) | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Related Party Transaction [Line Items] | |||
Purchases from supplier | $ 0 | $ 0 | $ 2,600,000 |
Accounts payable to supplier | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Apr. 13, 2010Defendant | Apr. 30, 2016ComplaintClaimant | Jul. 31, 2020Claimant | Jan. 03, 2021USD ($) |
Other Commitments [Line Items] | ||||
Operating lease legally binding minimum payments for leases that have not yet commenced | $ | $ 183 | |||
Total future purchase commitments | $ | $ 9 | |||
Number of complaints filed | 4 | |||
Number of individual claimants | Claimant | 3 | |||
Number of individual arbitrations settled | Claimant | 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 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Feb. 20, 2018 | |
Class of Stock [Line Items] | |||
Common stock issued | 117,953,435 | 117,543,668 | |
Common stock shares outstanding | 117,953,435 | 117,543,668 | |
Common stock shares repurchased and retired | 0 | 7,950,858 | |
Preferred stock shares authorized | 10,000,000 | 10,000,000 | |
February 20, 2018 Share Repurchase Program [Member] | |||
Class of Stock [Line Items] | |||
Shares authorized to be repurchased | $ 350,000,000 | ||
Shares remained available for repurchase | $ 0 | $ 42,000,000 | |
2013 Incentive Plan [Member] | |||
Class of Stock [Line Items] | |||
Common stock reserved for issuance | 4,433,820 |
Capital Stock - Schedule of Opt
Capital Stock - Schedule of Options Exercised in Exchange for Issuance of Shares of Common Stock (Detail) - shares | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Equity [Abstract] | |||
Options exercised | 59,561 | 316,493 | 2,824,460 |
Other share issuances under stock plans | 440,956 | 506,093 | 403,233 |
Capital Stock - Schedule of Sha
Capital Stock - Schedule of Share Repurchase Activity under Share Repurchase Programs (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Equity [Abstract] | |||
Number of common shares acquired | 0 | 7,950,858 | |
Average price per common share acquired | $ 22.18 | ||
Total cost of common shares acquired | $ 176,310 | $ 258,307 |
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 | 12 Months Ended | |||||||||
Jan. 03, 2021 | Sep. 27, 2020 | Jun. 28, 2020 | Mar. 29, 2020 | Dec. 29, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Basic net income per share: | |||||||||||
Net income | $ 68,397 | $ 60,241 | $ 67,002 | $ 91,810 | $ 31,634 | $ 26,260 | $ 35,343 | $ 56,392 | $ 287,450 | $ 149,629 | $ 158,536 |
Weighted average shares outstanding | 117,821 | 119,368 | 128,827 | ||||||||
Basic net income per share | $ 0.58 | $ 0.51 | $ 0.57 | $ 0.78 | $ 0.27 | $ 0.22 | $ 0.30 | $ 0.46 | $ 2.44 | $ 1.25 | $ 1.23 |
Diluted net income per share: | |||||||||||
Net income | $ 68,397 | $ 60,241 | $ 67,002 | $ 91,810 | $ 31,634 | $ 26,260 | $ 35,343 | $ 56,392 | $ 287,450 | $ 149,629 | $ 158,536 |
Weighted average shares outstanding | 117,821 | 119,368 | 128,827 | ||||||||
Dilutive effect of equity-based awards: | |||||||||||
Assumed exercise of options to purchase shares | 16 | 52 | 429 | ||||||||
Weighted average shares and equivalent shares outstanding | 118,224 | 119,742 | 129,776 | ||||||||
Diluted net income per share | $ 0.58 | $ 0.51 | $ 0.57 | $ 0.78 | $ 0.27 | $ 0.22 | $ 0.30 | $ 0.46 | $ 2.43 | $ 1.25 | $ 1.22 |
Restricted Stock Units [Member] | |||||||||||
Dilutive effect of equity-based awards: | |||||||||||
Dilutive effect | 341 | 178 | 220 | ||||||||
Restricted Stock Awards [Member] | |||||||||||
Dilutive effect of equity-based awards: | |||||||||||
Dilutive effect | 9 | 55 | 136 | ||||||||
Performance Share Awards [Member] | |||||||||||
Dilutive effect of equity-based awards: | |||||||||||
Dilutive effect | 37 | 89 | 164 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Stock option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 219,736 | 521,502 | 1,105,334 |
RSUs [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 62,347 | ||
PSAs [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 299,629 | 302,621 | 128,854 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) | 12 Months Ended | |
Jan. 03, 2021USD ($)Swap | Dec. 31, 2017Hedge | |
Derivative [Line Items] | ||
Derivative, cash flow swaps length period | 1 year | |
Cash flow swaps mature annually, starting year | 2021 | |
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 | |
Forward Contract [Member] | ||
Derivative [Line Items] | ||
Derivative, number of cash flow hedges | Hedge | 5 | |
Number of outstanding swaps | Swap | 2 |
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 | Jan. 03, 2021 | Dec. 29, 2019 |
Accrued Liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Liability Derivatives, Fair Value | $ 5,695 | $ 1,736 |
Other Long-term Liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Liability Derivatives, Fair Value | $ 5,756 | $ 4,569 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Summary of Gains and Losses of Derivative Instruments (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 03, 2021 | Dec. 29, 2019 | |
Interest Expense (Income), Net [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Gain / (Loss) on Derivative Instruments,net of tax | $ 4,307 | $ (256) |
Comprehensive Income - Changes
Comprehensive Income - Changes In Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | $ 581,952 | $ 589,196 | $ 650,694 |
Other comprehensive income (loss), net of tax | |||
Unrealized loss on cash flow hedging activities, net of income tax | (592) | (6,006) | 1,624 |
Reclassification of net gains (losses) on cash flow hedges to net income, net of income tax | (3,200) | 190 | 294 |
Total other comprehensive income (loss) | (3,792) | (5,816) | 1,918 |
Ending Balance | 881,293 | 581,952 | 589,196 |
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 | (592) | (6,006) | |
Reclassification of net gains (losses) on cash flow hedges to net income, net of income tax | (3,200) | 190 | |
Total other comprehensive income (loss) | (3,792) | (5,816) | |
Ending Balance | $ (8,474) | $ (4,682) | $ 1,134 |
Comprehensive Income - Change_2
Comprehensive Income - Changes In Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Income tax expenses (Benefit) on cash flow hedging activities | $ (205) | $ (2,078) | $ 561 |
Income tax expenses (Benefit) for reclassification of net gains (losses) on cash flow hedges | (1,107) | 66 | $ 102 |
Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Income tax expenses (Benefit) on cash flow hedging activities | (205) | (2,078) | |
Income tax expenses (Benefit) for reclassification of net gains (losses) on cash flow hedges | $ (1,107) | $ 66 |
Comprehensive Income - Addition
Comprehensive Income - Additional Information (Detail) $ in Millions | Jan. 03, 2021USD ($) |
Equity [Abstract] | |
Estimated amount expected to be reclassified from Accumulated other comprehensive income (loss) to net income within next twelve months on interest rates, loss | $ 5.7 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Recurring [Member] - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Long-term debt | $ 250,000 | $ 538,000 |
Interest rate swap liability | 11,451 | 6,305 |
Total liabilities | 261,451 | 544,305 |
Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Long-term debt | 250,000 | 538,000 |
Interest rate swap liability | 11,451 | 6,305 |
Total liabilities | $ 261,451 | $ 544,305 |
Segments - Additional Informati
Segments - Additional Information (Detail) | 12 Months Ended |
Jan. 03, 2021Segment | |
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 | 12 Months Ended | |||||||||
Jan. 03, 2021 | Sep. 27, 2020 | Jun. 28, 2020 | Mar. 29, 2020 | Dec. 29, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Net Sales, amount | $ 1,601,834 | $ 1,577,598 | $ 1,642,788 | $ 1,646,539 | $ 1,364,991 | $ 1,440,222 | $ 1,415,736 | $ 1,413,887 | $ 6,468,759 | $ 5,634,835 | $ 5,207,336 |
Sales Revenue, Goods, Net [Member] | Product Concentration Risk [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net Sales, percentage | 100.00% | 100.00% | |||||||||
Perishables [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net Sales, amount | $ 3,700,878 | $ 3,252,928 | |||||||||
Perishables [Member] | Sales Revenue, Goods, Net [Member] | Product Concentration Risk [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net Sales, percentage | 57.20% | 57.70% | 57.50% | ||||||||
Non-Perishables [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net Sales, amount | $ 2,767,881 | $ 2,381,907 | |||||||||
Non-Perishables [Member] | Sales Revenue, Goods, Net [Member] | Product Concentration Risk [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net Sales, percentage | 42.80% | 42.30% | 42.50% |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Awards Granted to Officers, Directors and Team Members (Detail) - $ / shares | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise Price | $ 16.71 | ||
Grant date fair value | 4.94 | $ 7.63 | $ 7.80 |
Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value | $ 4.94 | $ 7.63 | $ 7.80 |
2013 Incentive Plan [Member] | Officers, Directors and Team Members [Member] | RSUs [Member] | March 4, 2019 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 386,115 | ||
Grant date fair value | $ 23.12 | ||
2013 Incentive Plan [Member] | Officers, Directors and Team Members [Member] | RSUs [Member] | May 13, 2019 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 45,682 | ||
Grant date fair value | $ 21.70 | ||
2013 Incentive Plan [Member] | Officers, Directors and Team Members [Member] | RSUs [Member] | June 24, 2019 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 177,975 | ||
Grant date fair value | $ 18.64 | ||
2013 Incentive Plan [Member] | Officers, Directors and Team Members [Member] | RSUs [Member] | August 12, 2019 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 12,313 | ||
Grant date fair value | $ 17.54 | ||
2013 Incentive Plan [Member] | Officers, Directors and Team Members [Member] | RSUs [Member] | December 3, 2019 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 3,159 | ||
Grant date fair value | $ 20.22 | ||
2013 Incentive Plan [Member] | Officers, Directors and Team Members [Member] | RSUs [Member] | March 9, 2020 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 485,367 | ||
Grant date fair value | $ 16.47 | ||
2013 Incentive Plan [Member] | Officers, Directors and Team Members [Member] | RSUs [Member] | May 12, 2020 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 66,550 | ||
Grant date fair value | $ 25.58 | ||
2013 Incentive Plan [Member] | Officers, Directors and Team Members [Member] | RSUs [Member] | August 10, 2020 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 35,655 | ||
Grant date fair value | $ 24.77 | ||
2013 Incentive Plan [Member] | Officers, Directors and Team Members [Member] | PSAs [Member] | March 4, 2019 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 95,768 | ||
Grant date fair value | $ 23.12 | ||
2013 Incentive Plan [Member] | Officers, Directors and Team Members [Member] | PSAs [Member] | May 13, 2019 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 2,999 | ||
Grant date fair value | $ 21.70 | ||
2013 Incentive Plan [Member] | Officers, Directors and Team Members [Member] | PSAs [Member] | June 24, 2019 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 75,000 | ||
Grant date fair value | $ 18.64 | ||
2013 Incentive Plan [Member] | Officers, Directors and Team Members [Member] | PSAs [Member] | March 9, 2020 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 174,902 | ||
Grant date fair value | $ 16.47 | ||
2013 Incentive Plan [Member] | Officers, Directors and Team Members [Member] | PSAs [Member] | May 12, 2020 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 11,389 | ||
Grant date fair value | $ 25.58 | ||
2013 Incentive Plan [Member] | Officers, Directors and Team Members [Member] | PSAs [Member] | August 10, 2020 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 5,762 | ||
Grant date fair value | $ 24.77 | ||
2013 Incentive Plan [Member] | Officers, Directors and Team Members [Member] | Options [Member] | March 4, 2019 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 53,866 | ||
Exercise Price | $ 23.12 | ||
Grant date fair value | $ 7.63 | ||
2013 Incentive Plan [Member] | Officers, Directors and Team Members [Member] | Options [Member] | March 9, 2020 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 1,055,907 | ||
Exercise Price | $ 16.47 | ||
Grant date fair value | $ 4.86 | ||
2013 Incentive Plan [Member] | Officers, Directors and Team Members [Member] | Options [Member] | May 12, 2020 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 15,569 | ||
Exercise Price | $ 25.58 | ||
Grant date fair value | $ 8.03 | ||
2013 Incentive Plan [Member] | Officers, Directors and Team Members [Member] | Options [Member] | August 10, 2020 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock | 14,052 | ||
Exercise Price | $ 24.77 | ||
Grant date fair value | $ 7.74 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) | Dec. 29, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | Jan. 01, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Grant date fair value | $ 4.94 | $ 7.63 | $ 7.80 | ||||
Total intrinsic value of options exercised | $ 156,000 | ||||||
Proceeds from exercise of stock options | 1,343,000 | $ 4,878,000 | $ 21,843,000 | ||||
Excess tax benefit (detriment) resulting from shares-based awards credited to stockholders' equity | (500,000) | (1,600,000) | 12,400,000 | ||||
RSUs [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total grant date fair value vested | $ 7,800,000 | $ 7,400,000 | $ 5,100,000 | ||||
Number of shares, outstanding | 902,258 | 725,653 | |||||
Number of shares forfeited | 60,761 | ||||||
Stock option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Grant date fair value | $ 4.94 | $ 7.63 | $ 7.80 | ||||
Grant date weighted average options issued | 1,100,000 | 100,000 | 100,000 | ||||
Grant date weighted average fair value of options issued but not vested | $ 5 | $ 7.63 | $ 8.35 | ||||
Total intrinsic value of options exercised | $ 200,000 | $ 2,100,000 | $ 53,300,000 | ||||
PSAs [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total grant date fair value vested | $ 600,000 | $ 1,900,000 | 700,000 | ||||
Performance stock awards description | Payout of the performance shares was either to have been 0% or range from 50% to 150% of the target number of shares granted, depending upon goal achievement. | ||||||
Number of shares, outstanding | 315,401 | 169,771 | |||||
Performance period | 3 years | ||||||
Total grant date fair value granted | $ 3,300,000 | $ 3,700,000 | 3,200,000 | ||||
Total grant date fair value forfeited or not earned | $ 300,000 | $ 3,900,000 | $ 3,500,000 | ||||
Total grant date fair value issued | 300,000 | 200,000 | 300,000 | ||||
Total grant date fair value issued but not released | $ 5,800,000 | $ 3,400,000 | $ 5,500,000 | ||||
Number of shares forfeited | 10,726 | ||||||
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% | ||||
PSAs [Member] | March 2017 [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 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] | Employee Termination [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 24 months | ||||||
PSAs [Member] | Share-based Payment Arrangement, Tranche One [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 50.00% | ||||||
PSAs [Member] | Share-based Payment Arrangement, Tranche Two [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 50.00% | ||||||
PSAs [Member] | Option One [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance stock awards payout percentage of shares granted | 0.00% | ||||||
PSAs [Member] | Option One [Member] | Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance stock awards payout percentage of shares granted | 10.00% | ||||||
PSAs [Member] | Option One [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance stock awards payout percentage of shares granted | 150.00% | ||||||
PSAs [Member] | Option Two [Member] | Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance stock awards payout percentage of shares granted | 50.00% | ||||||
PSAs [Member] | Option Two [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance stock awards payout percentage of shares granted | 150.00% | ||||||
RSAs [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Total grant date fair value vested | $ 1,000,000 | $ 1,600,000 | 3,300,000 | ||||
Number of shares, outstanding | 0 | 55,053 | |||||
Total grant date fair value granted | $ 0 | $ 0 | 0 | ||||
Number of shares forfeited | 0 | ||||||
Total grant date fair value forfeited | $ 300,000 | $ 600,000 | |||||
RSAs [Member] | Employee Termination [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 24 months | ||||||
Former President and Chief Operating Officer [Member] | Separation Agreement [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options expire period from grant date | 3 months | ||||||
Total number of options and awards modified | 216,044 | ||||||
Options and awards vesting period | 2020-03 | ||||||
Stock compensation cost reversals | $ 1,000,000 | ||||||
Incremental expense related to modification of stock options | $ 200,000 | ||||||
Chief Executive Officer [Member] | Separation Agreement [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 months | 6 months | |||||
Options expire period from grant date | 3 months | ||||||
Total number of options and awards modified | 125,241 | ||||||
Options and awards vesting period | 2019-03 | ||||||
Stock compensation cost reversals | $ 2,500,000 | ||||||
Incremental expense related to modification of stock options | $ 200,000 | ||||||
Total number of options modified | 995,937 | ||||||
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 | 2,547,567 | ||||||
Remaining shares available for issuance | 4,433,820 | ||||||
2013 Incentive Plan [Member] | Employee Termination [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 24 months | ||||||
2013 Incentive Plan [Member] | Officers, Directors and Team Members [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options expire period from grant date | 7 years | 7 years | |||||
2013 Incentive Plan [Member] | Officers, Directors and Team Members [Member] | RSUs Vesting over Three Years [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | 3 years | |||||
2013 Incentive Plan [Member] | Officers, Directors and Team Members [Member] | RSUs Vesting over Three Years [Member] | Share-based Payment Arrangement, Tranche One [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 33.33% | 33.33% | |||||
2013 Incentive Plan [Member] | Officers, Directors and Team Members [Member] | RSUs Vesting over Three Years [Member] | Share-based Payment Arrangement, Tranche Two [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 33.33% | 33.33% | |||||
2013 Incentive Plan [Member] | Officers, Directors and Team Members [Member] | RSUs Vesting over Three Years [Member] | Share-based Payment Arrangement, Tranche Three [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 33.33% | 33.33% | |||||
2013 Incentive Plan [Member] | Officers, Directors and Team Members [Member] | RSUs Vesting over Two Years [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 2 years | 2 years | |||||
2013 Incentive Plan [Member] | Officers, Directors and Team Members [Member] | RSUs Vesting over Two Years [Member] | Share-based Payment Arrangement, Tranche One [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 50.00% | 50.00% | |||||
2013 Incentive Plan [Member] | Officers, Directors and Team Members [Member] | RSUs Vesting over Two Years [Member] | Share-based Payment Arrangement, Tranche Two [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 50.00% | 50.00% | |||||
2013 Incentive Plan [Member] | Independent Directors [Member] | RSUs [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 1 year | 1 year |
Share-Based Compensation - Esti
Share-Based Compensation - Estimated Fair Values of Options Granted (Detail) | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 34.80% | 34.89% | 35.20% |
Risk free interest rate | 0.46% | 2.53% | 2.76% |
Expected term, in years | 4 years 6 months | 4 years 6 months | 4 years 6 months |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Grant Date Weighted Average Fair Value of Options Granted and Options Forfeited (Detail) - $ / shares | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Grant date weighted average fair value of options granted | $ 4.94 | $ 7.63 | $ 7.80 |
Grant date weighted average fair value of options forfeited | $ 8.94 | $ 7.03 | $ 9.32 |
Share-Based Compensation - Su_3
Share-Based Compensation - Summary of Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Number of Options, Outstanding, Beginning Balance | 523,725 | ||
Number of Options, Granted | 1,085,528 | ||
Number of Options, Forfeited | (219,484) | ||
Number of Options, Exercised | (59,561) | (316,493) | (2,824,460) |
Number of Options, Outstanding, Ending balance | 1,330,208 | 523,725 | |
Number of Options, Exercisable | 234,703 | ||
Number of Options, Vested and Expected to vest | 1,330,208 | ||
Weighted Average Exercise Price, Outstanding, Beginning balance | $ 29.84 | ||
Weighted Average Exercise Price, Granted | 16.71 | ||
Weighted Average Exercise Price, Forfeited | 31.41 | ||
Weighted Average Exercise Price, Exercised | 22.56 | ||
Weighted Average Exercise Price, Outstanding, Ending balance | 19.19 | $ 29.84 | |
Weighted Average Exercise Price, Exercisable | 30.13 | ||
Weighted Average Exercise Price, Vested and Expected to vest | $ 19.19 | ||
Weighted Average Remaining Contractual Life (In Years), Outstanding | 5 years 3 months 18 days | ||
Weighted Average Remaining Contractual Life (In Years), Exercisable | 1 year 3 months 7 days | ||
Weighted Average Remaining Contractual Life (In Years), Vested and Expected to vest | 5 years 3 months 18 days | ||
Total intrinsic value of options exercised | $ 156 | ||
Aggregate Intrinsic Value, Outstanding | 3,784 | ||
Aggregate Intrinsic Value, Vested and Expected to vest | $ 3,784 |
Share-Based Compensation - Su_4
Share-Based Compensation - Summary of Weighted Average Grant Date Fair Value of RSUs Awarded (Detail) - $ / shares | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSUs awarded | $ 18.01 | $ 21.62 | $ 24.80 |
Share-Based Compensation - Su_5
Share-Based Compensation - Summary of RSUs Activity (Detail) - RSUs [Member] - $ / shares | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Outstanding, Beginning Balance | 725,653 | ||
Number of Shares, Awarded | 587,572 | ||
Number of Shares, Released | (350,206) | ||
Number of Shares, Forfeited | (60,761) | ||
Number of Shares, Outstanding, Ending Balance | 902,258 | 725,653 | |
Weighted Average Grant Date Fair Value, Beginning Balance | $ 22.02 | ||
Weighted Average Grant Date Fair Value, Awarded | 18.01 | $ 21.62 | $ 24.80 |
Weighted Average Grant Date Fair Value, Released | 22.23 | ||
Weighted Average Grant Date Fair Value, Forfeited | 20.55 | ||
Weighted Average Grant Date Fair Value, Ending balance | $ 19.43 | $ 22.02 |
Share-Based Compensation - Su_6
Share-Based Compensation - Summary of PSAs Activity (Detail) - PSAs [Member] | 12 Months Ended |
Jan. 03, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Outstanding, Beginning Balance | shares | 169,771 |
Number of Shares, Awarded | shares | 192,053 |
Number of Shares, Released | shares | (35,697) |
Number of Shares, Forfeited | shares | (10,726) |
Number of Shares, Outstanding, Ending Balance | shares | 315,401 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 20.26 |
Weighted Average Grant Date Fair Value, Awarded | $ / shares | 17.26 |
Weighted Average Grant Date Fair Value, Released | $ / shares | 18.11 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 24.08 |
Weighted Average Grant Date Fair Value, Ending balance | $ / shares | $ 18.54 |
Share-Based Compensation - Su_7
Share-Based Compensation - Summary of RSAs Activity (Detail) - RSAs [Member] | 12 Months Ended |
Jan. 03, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Outstanding, Beginning Balance | 55,053 |
Number of Shares, Released | (55,053) |
Number of Shares, Forfeited | 0 |
Number of Shares, Outstanding, Ending Balance | 0 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 18.11 |
Weighted Average Grant Date Fair Value, Released | $ / shares | $ 18.11 |
Weighted Average Grant Date Fair Value, Ending balance | $ / shares |
Share-Based Compensation - Su_8
Share-Based Compensation - Summary of Share-Based Compensation Expense in Selling, General and Administrative Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Share-based compensation expense before income taxes | $ 14,339 | $ 8,949 | $ 14,512 |
Income tax benefit | (2,662) | (2,093) | (3,383) |
Net share-based compensation expense | $ 11,677 | $ 6,856 | $ 11,129 |
Share-Based Compensation - Su_9
Share-Based Compensation - Summary of Total Unrecognized Compensation Expense and Remaining Weighted Average Recognition Period Related to Outstanding Share-Based Awards (Detail) $ in Thousands | 12 Months Ended |
Jan. 03, 2021USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation expense at January 3, 2021 | $ 21,566 |
Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense related to outstanding options | $ 3,971 |
Remaining weighted average recognition period | 2 years 2 months 12 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 | $ 10,886 |
Remaining weighted average recognition period | 1 year 7 months 6 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 | $ 6,709 |
Remaining weighted average recognition period | 1 year 8 months 12 days |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) - Summary of Unaudited Consolidated Statements of Income Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 03, 2021 | Sep. 27, 2020 | Jun. 28, 2020 | Mar. 29, 2020 | Dec. 29, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 1,601,834 | $ 1,577,598 | $ 1,642,788 | $ 1,646,539 | $ 1,364,991 | $ 1,440,222 | $ 1,415,736 | $ 1,413,887 | $ 6,468,759 | $ 5,634,835 | $ 5,207,336 |
Gross profit | 588,029 | 584,769 | 612,659 | 593,832 | 468,963 | 476,725 | 464,782 | 484,349 | 2,379,289 | 1,894,818 | 1,747,475 |
Income from operations | 92,932 | 78,381 | 92,763 | 127,589 | 46,915 | 39,557 | 51,332 | 79,556 | 391,665 | 217,360 | 222,911 |
Net income | $ 68,397 | $ 60,241 | $ 67,002 | $ 91,810 | $ 31,634 | $ 26,260 | $ 35,343 | $ 56,392 | $ 287,450 | $ 149,629 | $ 158,536 |
Net income per share: | |||||||||||
Basic | $ 0.58 | $ 0.51 | $ 0.57 | $ 0.78 | $ 0.27 | $ 0.22 | $ 0.30 | $ 0.46 | $ 2.44 | $ 1.25 | $ 1.23 |
Diluted | $ 0.58 | $ 0.51 | $ 0.57 | $ 0.78 | $ 0.27 | $ 0.22 | $ 0.30 | $ 0.46 | $ 2.43 | $ 1.25 | $ 1.22 |