Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Jan. 02, 2022 | Feb. 18, 2022 | Jul. 04, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 2, 2022 | ||
Current Fiscal Year End Date | --01-02 | ||
Document Transition Report | false | ||
Entity File Number | 001-37760 | ||
Entity Registrant Name | SiteOne Landscape Supply, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 46-4056061 | ||
Entity Address, Address Line One | 300 Colonial Center Parkway | ||
Entity Address, Address Line Two | Suite 600 | ||
Entity Address, City or Town | Roswell | ||
Entity Address, State or Province | GA | ||
Entity Address, Postal Zip Code | 30076 | ||
City Area Code | 470 | ||
Local Phone Number | 277-7000 | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share | ||
Trading Symbol | SITE | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 7,504,369,645 | ||
Entity Common Stock, Shares Outstanding | 44,841,212 | ||
Documents Incorporated by Reference | Portions of the registrant’s proxy statement to be filed with the U.S. Securities and Exchange Commission in connection with the registrant’s 2022 Annual Meeting of Stockholders (the “Proxy Statement”) are incorporated by reference into Part III hereof. Such Proxy Statement will be filed within 120 days of the registrant’s fiscal year ended January 2, 2022. | ||
Entity Central Index Key | 0001650729 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Jan. 02, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 34 |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Atlanta, Georgia |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jan. 02, 2022 | Jan. 03, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 53.7 | $ 55.2 |
Accounts receivable, net of allowance for doubtful accounts of $13.5 and $9.1, respectively | 393.8 | 292.8 |
Inventory, net | 636.6 | 458.6 |
Income tax receivable | 3.3 | 6.8 |
Prepaid expenses and other current assets | 41.4 | 38.2 |
Total current assets | 1,128.8 | 851.6 |
Property and equipment, net (Note 4) | 151.5 | 130 |
Operating lease right-of-use assets, net (Note 6) | 298.5 | 256.5 |
Goodwill (Note 5) | 311.1 | 250.6 |
Intangible assets, net (Note 5) | 213.9 | 196.3 |
Deferred tax assets (Note 1 and Note 9) | 3.2 | 2.4 |
Other assets | 9.1 | 8.3 |
Total assets | 2,116.1 | 1,695.7 |
Current liabilities: | ||
Accounts payable | 254.5 | 172.8 |
Current portion of finance leases (Note 6) | 11 | 9.2 |
Current portion of operating leases (Note 6) | 62.1 | 54.6 |
Accrued compensation | 99.3 | 69.2 |
Long-term debt, current portion (Note 8) | 4 | 2.8 |
Accrued liabilities | 82 | 60 |
Total current liabilities | 512.9 | 368.6 |
Other long-term liabilities | 10.6 | 25.3 |
Finance leases, less current portion (Note 6) | 34.4 | 32.4 |
Operating leases, less current portion (Note 6) | 244.2 | 208.3 |
Deferred tax liabilities (Note 1 and Note 9) | 5.1 | 5.4 |
Long-term debt, less current portion (Note 1 and Note 8) | 251.2 | 260.7 |
Total liabilities | 1,058.4 | 900.7 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity (Note 1): | ||
Common stock, par value $0.01; 1,000,000,000 shares authorized; 44,788,385 and 44,300,380 shares issued, and 44,767,474 and 44,279,469 shares outstanding at January 2, 2022 and January 3, 2021, respectively | 0.4 | 0.4 |
Additional paid-in capital | 562 | 541.8 |
Retained earnings | 497.5 | 259.1 |
Accumulated other comprehensive loss | (2.2) | (6.3) |
Total stockholders’ equity | 1,057.7 | 795 |
Total liabilities and stockholders’ equity | $ 2,116.1 | $ 1,695.7 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jan. 02, 2022 | Jan. 03, 2021 | Aug. 03, 2020 | Dec. 29, 2019 | Dec. 30, 2018 |
Statement of Financial Position [Abstract] | |||||
Allowance for doubtful accounts | $ 13.5 | $ 9.1 | $ 8.3 | $ 5.9 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 | |||
Common stock, shares issued (in shares) | 44,788,385 | 44,300,380 | |||
Common stock, shares outstanding (in shares) | 44,767,474 | 44,279,469 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Income Statement [Abstract] | |||
Net sales | $ 3,475.7 | $ 2,704.5 | $ 2,357.5 |
Cost of goods sold | 2,263.1 | 1,803.2 | 1,584.3 |
Gross profit | 1,212.6 | 901.3 | 773.2 |
Selling, general and administrative expenses | 900.6 | 728.2 | 654.3 |
Other income | 1.7 | 6.7 | 6 |
Operating income | 313.7 | 179.8 | 124.9 |
Interest and other non-operating expenses, net | 19.2 | 31 | 33.4 |
Income before taxes | 294.5 | 148.8 | 91.5 |
Income tax expense | 56.1 | 27.5 | 13.8 |
Net income | $ 238.4 | $ 121.3 | $ 77.7 |
Net income per common share: | |||
Basic (in dollars per share) | $ 5.35 | $ 2.83 | $ 1.89 |
Diluted (in dollars per share) | $ 5.20 | $ 2.75 | $ 1.82 |
Weighted average number of common shares outstanding: | |||
Basic (shares) | 44,578,649 | 42,858,691 | 41,218,843 |
Diluted (shares) | 45,805,373 | 44,093,501 | 42,750,348 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 238.4 | $ 121.3 | $ 77.7 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (0.1) | 0.7 | 0.5 |
Interest rate swaps - net unrealized gains (losses) and reclassifications into earnings, net of taxes of $(1.4), $0.1, and $2.3, respectively | 4.2 | (0.5) | (6.2) |
Total other comprehensive income (loss) | 4.1 | 0.2 | (5.7) |
Comprehensive income | $ 242.5 | $ 121.5 | $ 72 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized gain (loss) on interest rate swaps, tax | $ (1.4) | $ 0.1 | $ 2.3 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in-Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Stockholders' equity, beginning balance (in shares) at Dec. 30, 2018 | 40,890,100 | ||||
Stockholders' equity, beginning balance at Dec. 30, 2018 | $ 301.8 | $ 0.4 | $ 242.1 | $ 60.1 | $ (0.8) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 77.7 | 77.7 | |||
Other comprehensive income (loss) | (5.7) | (5.7) | |||
Issuance of common shares under stock-based compensation plan (in shares) | 680,700 | ||||
Issuance of common shares under stock-based compensation plan | 7.7 | 7.7 | 0 | ||
Stock-based compensation | 11.7 | 11.7 | |||
Stockholders' equity, ending balance (in shares) at Dec. 29, 2019 | 41,570,800 | ||||
Stockholders' equity, ending balance at Dec. 29, 2019 | 393.2 | $ 0.4 | 261.5 | 137.8 | (6.5) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 121.3 | 121.3 | |||
Other comprehensive income (loss) | 0.2 | 0.2 | |||
Issuance of common stock in public offering, net of issuance costs (in shares) | 2,150,000 | ||||
Issuance of common stock in public offering, net of issuance costs | 261.7 | 261.7 | |||
Issuance of common shares under stock-based compensation plan (in shares) | 558,700 | ||||
Issuance of common shares under stock-based compensation plan | 8 | 8 | |||
Stock-based compensation | 10.6 | 10.6 | |||
Stockholders' equity, ending balance (in shares) at Jan. 03, 2021 | 44,279,500 | ||||
Stockholders' equity, ending balance at Jan. 03, 2021 | 795 | $ 0.4 | 541.8 | 259.1 | (6.3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 238.4 | 238.4 | |||
Other comprehensive income (loss) | 4.1 | 4.1 | |||
Issuance of common shares under stock-based compensation plan (in shares) | 488,000 | ||||
Issuance of common shares under stock-based compensation plan | 5.9 | 5.9 | |||
Stock-based compensation | 14.3 | 14.3 | |||
Stockholders' equity, ending balance (in shares) at Jan. 02, 2022 | 44,767,500 | ||||
Stockholders' equity, ending balance at Jan. 02, 2022 | $ 1,057.7 | $ 0.4 | $ 562 | $ 497.5 | $ (2.2) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Cash Flows from Operating Activities: | |||
Net income | $ 238.4 | $ 121.3 | $ 77.7 |
Adjustments to reconcile Net income to net cash provided by operating activities: | |||
Amortization of finance lease right-of-use assets and depreciation | 36.2 | 29.4 | 25.1 |
Stock-based compensation | 14.3 | 10.6 | 11.7 |
Amortization of software and intangible assets | 46.8 | 37.8 | 34.4 |
Amortization of debt related costs | 2.3 | 4.1 | 2 |
Loss on extinguishment of debt | 0.8 | 0 | 0.4 |
(Gain) loss on sale of equipment | (0.1) | (0.4) | 0.3 |
Deferred income taxes | (3.1) | 0.4 | (3.4) |
Other | 6.5 | 3.7 | 0.9 |
Changes in operating assets and liabilities, net of the effects of acquisitions: | |||
Receivables | (92.1) | 2.8 | 6.1 |
Inventory | (156.9) | (7.9) | (3) |
Income tax receivable | 3.5 | 0.2 | 3 |
Prepaid expenses and other assets | (3.2) | (11) | 7.5 |
Accounts payable | 74.4 | (4.3) | (29) |
Accrued expenses and other liabilities | 43 | 42.7 | (2.9) |
Net Cash Provided By Operating Activities | 210.8 | 229.4 | 130.8 |
Cash Flows from Investing Activities: | |||
Purchases of property and equipment | (32.5) | (18.6) | (19.5) |
Purchases of intangible assets | (4.5) | (7.2) | (1.9) |
Acquisitions, net of cash acquired | (147.2) | (159.4) | (71.5) |
Proceeds from the sale of property and equipment | 2.2 | 1 | 1 |
Net Cash Used In Investing Activities | (182) | (184.2) | (91.9) |
Cash Flows from Financing Activities: | |||
Equity proceeds from common stock | 9.3 | 271.5 | 8.4 |
Borrowings under term loan | 325 | 0 | 0 |
Repayments under term loan | (338.6) | (172.8) | (4.5) |
Borrowings on asset-based credit facility | 161.9 | 285.4 | 273.7 |
Repayments on asset-based credit facility | (161.9) | (378.2) | (304) |
Payments of debt issuance costs | (2.4) | 0 | (0.9) |
Payments on finance lease obligations | (10.4) | (8.5) | (6.5) |
Payments of acquisition related contingent obligations | (8.6) | (4.8) | (3) |
Other financing activities | (4.7) | (1.7) | (0.5) |
Net Cash Used In Financing Activities | (30.4) | (9.1) | (37.3) |
Effect of exchange rate on cash | 0.1 | 0.1 | 0.1 |
Net Change In Cash | (1.5) | 36.2 | 1.7 |
Cash and cash equivalents: | |||
Beginning | 55.2 | 19 | 17.3 |
Ending | 53.7 | 55.2 | 19 |
Supplemental Disclosures of Cash Flow Information: | |||
Cash paid during the year for interest | 15.6 | 27.3 | 30.3 |
Cash paid during the year for income taxes | $ 55.8 | $ 25.2 | $ 16 |
Nature of Business and Signific
Nature of Business and Significant Accounting Policies | 12 Months Ended |
Jan. 02, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Significant Accounting Policies | Nature of Business and Significant Accounting Policies Nature of business: SiteOne Landscape Supply, Inc. (hereinafter collectively with all its consolidated subsidiaries referred to as the “Company” or individually as “Holdings”) is a wholesale distributor of irrigation supplies, fertilizer and control products (e.g., herbicides), hardscapes (including pavers, natural stone, and blocks), landscape accessories, nursery goods, outdoor lighting, and ice melt products to green industry professionals. The Company also provides value-added consultative services to complement its product offering and to help customers operate and grow their businesses. Substantially all of the Company’s sales are to customers located in the United States of America (“U.S.”), with less than four percent of sales and less than five percent of total assets in Canada for all periods presented. As of January 2, 2022, the Company had over 590 branches. Based on the nature of the Company’s products and customers’ business cycles, sales are significantly higher in the second and third quarters of each fiscal year. Stock Offering On August 3, 2020, the Company entered into an underwriting agreement (the “Underwriting Agreement”) with BofA Securities, Inc. (the “Underwriter”), relating to an underwritten public offering of 2,150,000 shares of the Company’s common stock, $0.01 par value per share (the “Common Stock”). Under the terms of the Underwriting Agreement, the Company granted the Underwriter an option, exercisable for 30 days, to purchase up to an additional 322,500 shares of Common Stock. The Underwriter did not exercise the option to purchase additional shares of Common Stock. The aggregate proceeds to the Company from the sale of shares of Common Stock in the offering were approximately $262.3 million before expenses of approximately $0.6 million. The offering closed on August 6, 2020. The Company has used a portion of the proceeds and intends to use the remaining net proceeds from the offering for general corporate purposes, which may include the acquisition of companies or businesses, the repayment and refinancing of debt, working capital and capital expenditures. The shares of Common Stock sold in the offering were issued pursuant to an automatically effective shelf registration statement on Form S-3ASR (Registration No. 333-240295) and the related prospectus that was filed with the Securities and Exchange Commission (“SEC”) on August 3, 2020, and a related prospectus supplement, dated August 3, 2020. COVID-19 Pandemic As a result of the ongoing novel coronavirus (or “COVID-19”) pandemic, the Company could experience impacts including, but not limited to, charges from potential adjustments of the carrying amounts of receivables and inventory, goodwill and other asset impairment charges, or deferred tax valuation allowances. There has been no material adverse impact to the Company’s consolidated financial statements for the year ended January 2, 2022; however, the extent to which the COVID-19 pandemic impacts the Company’s business, results of operations, and financial condition will depend on future developments, which remain highly uncertain and cannot be predicted, including, but not limited to the duration, spread, and severity of the COVID-19 pandemic, including the emergence of variant strains of the virus, the effects of the COVID-19 pandemic on the Company’s customers, suppliers, vendors, and associates and the remedial actions and stimulus measures adopted by local, state, and federal governments, and to what extent normal economic and operating conditions can resume. Even after the COVID-19 pandemic has subsided, the Company may experience an impact to its business as a result of any economic downturn, recession, or depression that has occurred or may occur in the future. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted which includes measures to assist companies in response to the COVID-19 pandemic. In accordance with the CARES Act, the Company deferred the payment of qualifying employer payroll taxes of $12.2 million during the fiscal year ended January 3, 2021, which are required to be paid over two years, with 50% to be paid by December 31, 2021 and the remainder by December 31, 2022. During the fiscal year ended January 2, 2022, the Company paid $6.1 million of the previously deferred employer payroll taxes. As of January 2, 2022, the Company had $6.1 million of qualifying employer payroll taxes included in Accrued compensation in its Consolidated Balance Sheets. Basis of Financial Statement Presentation Holdings indirectly owns 100% of the membership interest in SiteOne Landscape Supply Holding, LLC (referred to herein as “Landscape Holding”). Landscape Holding is the parent and sole owner of SiteOne Landscape Supply, LLC (referred to herein as “Landscape”). Prior to the transaction described below, Deere & Company (“Deere”) was the sole owner of SiteOne Landscape Supply Holding, LLC. On December 23, 2013 (the “Closing Date”), the Company acquired 100% of the ownership interest in Landscape Holding from Deere in exchange for common shares of the Company initially representing 40% of the outstanding capital stock (on an as-converted basis) plus cash consideration of $314 million, net of pre-closing and post-closing adjustments. In order to facilitate the transaction, the Company issued Redeemable Convertible Preferred Stock to Clayton, Dubilier & Rice, LLC (“CD&R”) for total consideration of $174 million initially representing 60% of the outstanding capital stock (on an as-converted basis). As part of the same transaction, Landscape Holding also acquired from Deere the affiliated company LESCO, Inc. (“LESCO”). The Company continues to be the sole owner of Landscape Holding. The aforementioned transactions described in this paragraph are referred to herein as the “CD&R Acquisition”. On May 17, 2016, the Company completed its initial public offering of its common stock and following consummation of the Company’s secondary offering on July 26, 2017, CD&R and Deere no longer have an ownership interest in the Company. The Company’s chief operating decision maker (“CODM”) manages the business as a single reportable segment. Within the organizational framework, the same operational resources support multiple geographical regions and performance is evaluated primarily by the CODM at a consolidated level. The CODM also evaluates regional performance based on financial and operational measures and receives discrete financial information on a regional basis. Since all of the Company’s regions have similar operations and share similar economic characteristics, the Company aggregates regions into a single operating and reportable segment. These similarities include (i) long-term financial performance, (ii) the nature of products and services, (iii) the types of customers the Company sells to, and (iv) the distribution methods used. Further, all of the Company’s product categories have similar supply chain processes and classes of customers. The accompanying audited consolidated financial statements of the Company included herein have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The Consolidated Statements of Operations, Comprehensive Income, Equity, and Cash Flows for the Company are presented for the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019. The consolidated financial statements for the Company include the assets and liabilities used in operating the Company’s business, including entities in which the Company owns or controls more than 50% of the voting shares. All of the Company’s subsidiaries are wholly owned. All intercompany balances and transactions have been eliminated in consolidation. Significant accounting policies: Use of estimates in the preparation of financial statements : The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and 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. Actual results could differ from those estimates. Fiscal year : The Company’s fiscal year is a 52- or 53-week period ending on the Sunday nearest to December 31. The years ended January 2, 2022, January 3, 2021, and December 29, 2019 included 52 weeks, 53 weeks, and 52 weeks, respectively. Cash and cash equivalents : Cash and cash equivalents include primarily cash on deposit with banks which, at times, may exceed federally insured limits. The Company has not experienced any losses in these accounts. Cash and cash equivalents also include unsettled credit card transactions. Accounts receivable : Accounts receivable is presented at the original invoice amount, less any charge-offs and the allowance for credit losses and doubtful accounts. Allowances for credit losses and doubtful accounts are maintained in amounts considered to be appropriate in relation to the receivables outstanding based on collection experience, economic conditions, credit risk quality, and reasonable supportable forecasts. Receivables are written-off to the allowance when an account is considered uncollectible. Activity in the allowance for doubtful accounts for the periods was as follows (in millions): For the year For the year For the year Beginning balance $ 9.1 $ 8.3 $ 5.9 Provision for allowance 4.3 3.0 5.9 Recoveries (write-offs), net 0.1 (2.2) (3.5) Ending balance $ 13.5 $ 9.1 $ 8.3 Inventory : The majority of the Company’s inventories are valued at the lower of actual cost or estimated net realizable value, with cost determined by the first-in, first-out (“FIFO”) method. Inventory is primarily considered to be finished goods. The Company establishes a reserve for excess, slow-moving, and obsolete inventory that is equal to the difference between the cost and estimated net realizable value for that inventory. These reserves are based on a review of planned and historical sales. The reserve for obsolete and excess inventory was $11.8 million and $7.9 million as of January 2, 2022 and January 3, 2021, respectively. Property and equipment, net : Property and equipment is stated at cost less accumulated depreciation. Depreciation is computed on property and equipment using the straight-line method over the estimated useful lives of the assets, as noted below. Leasehold improvements are depreciated over the lesser of their estimated useful lives or the remaining lease terms. The amortization of the right-of-use (“ROU”) assets under finance leases is included in amortization expense. Expenditures for replacement or major renewals of significant items are capitalized. Expenditures for maintenance, repairs, and minor renewals are generally charged to expense as incurred. Asset Class Estimated Useful Life Buildings and improvements 20 years Branch equipment 2 to 12 years Furniture and fixtures 2 to 12 years Auto and truck 2 to 6 years Tooling 7 years Leasehold improvements Shorter of the estimated useful life or the term of the lease, considering renewal options expected to be exercised. Acquisitions : When the Company acquires a controlling financial interest in an entity or group of assets that are determined to meet the definition of a business, the acquisition method described in ASC Topic 805, Business Combinations, is applied. The Company allocates the purchase consideration paid to acquire the business to the assets and liabilities acquired based on estimated fair values at the acquisition date, with the excess of purchase price over the estimated fair value of the net assets acquired recorded as goodwill. If during the measurement period (a period not to exceed 12 months from the acquisition date) the Company receives additional information that existed as of the acquisition date but at the time of the original allocation described above was unknown, the Company makes the appropriate adjustments to the purchase price allocation in the reporting period in which the adjustments are identified. Goodwill : Goodwill represents the acquired fair value of a business in excess of the fair values of tangible and identified intangible assets acquired and liabilities assumed. The Company tests goodwill on an annual basis as of July fiscal month-end and additionally if an event occurs or circumstances change that would indicate the carrying amount may be impaired. Examples of such indicators include a significant change in the business climate, unexpected competition, loss of key personnel, or a decline in the Company’s market capitalization below the Company’s net book value. The Company performs impairment assessments at the reporting unit level, which is defined as an operating segment or one level below an operating segment, also known as a component. For impairment tests using a quantitative approach, the Company is required to estimate and compare the fair value of a reporting unit to its carrying amount, including goodwill. If the fair value exceeds the carrying amount, the goodwill is not considered impaired. To the extent a reporting unit’s carrying amount exceeds its fair value, the reporting unit’s goodwill is deemed impaired, and an impairment charge is recognized based on the excess of a reporting unit’s carrying amount over its fair value . No impairment of goodwill has occurred during the periods presented. Refer to Note 5 for a more detailed description of goodwill. Intangible assets, net : Intangible assets include customer relationships as well as trademarks and other intangibles acquired through acquisitions. The fair value of customer relationships is determined using the multi-period excess earnings method, which is a specific discounted cash flow method that requires management to make significant estimates and assumptions, including the selection of the discount rates. Intangibles assets with finite useful lives are amortized on an accelerated method or a straight-line of amortization over their estimated useful lives. An accelerated amortization method reflecting the pattern in which the asset will be consumed is utilized if that pattern can be reliably determined. If that pattern cannot be reliably determined, a straight-line amortization method is used. The Company considers the period of expected cash flows and the underlying data used to measure the fair value of the intangible assets when selecting a useful life. The majority of customer relationships are amortized on an accelerated method. Refer to Note 5 for more information regarding intangible assets amortization. Impairment of long-lived assets : Long-lived assets, primarily property and equipment, finite-lived intangible assets, and long-term contracts included in other assets, are evaluated for impairment whenever events or changes in circumstances indicate the carrying value of an asset group may not be recoverable. The recoverability of an asset group is measured by a comparison of the carrying amount of the asset group to its future undiscounted cash flows. If the recoverability test indicates the asset group balances are not recoverable, the Company would recognize an impairment charge in the current period to reduce the long-lived asset balances based on the fair value of the asset group. There were no impairment charges recognized during the years ended January 2, 2022, January 3, 2021, and December 29, 2019. Fair value measurement : Fair value is defined as an exit price, representing an amount that would be received to sell an asset or the amount paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The inputs used to measure fair value are prioritized into the following three-tiered value hierarchy: • Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2: Unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active or inputs, other than quoted prices in active markets, which are observable either directly or indirectly. • Level 3: Unobservable inputs for which there is little or no market data. The hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The classification of fair value measurement within the hierarchy is based upon the lowest level of input that is significant to the measurement. The Company’s financial instruments consist of cash and cash equivalents, accounts receivables, and long-term debt. The variable interest rate on the long-term debt is reflective of current market borrowing rates. As such, the Company has determined that the carrying value of these financial instruments approximates fair value. Interest Rate Swaps : The Company is subject to interest rate risk with regard to existing and future issuances of debt. The Company utilizes interest rate swap contracts to reduce its exposure to fluctuations in variable interest rates for future interest payments on existing debt. The Company has also amended and restructured its interest rate swap contracts using a strategy commonly referred to as a “blend and extend”. In a blend and extend arrangement, the liability position of the existing interest rate swap arrangement is effectively blended into the amended or new interest rate swap arrangement and the term to maturity of the hedged position is extended. The Company evaluates its blend and extend arrangements under Accounting Standards Codification (“ASC”), Topic 815: Derivatives and Hedging, to determine if they are stand-alone derivative instruments or hybrid instruments. The Company recognizes the unrealized gains or unrealized losses for interest rate swap contracts as either assets or liabilities at fair value on its Consolidated Balance Sheets. The interest rate swap contracts are subject to master netting arrangements. The Company has elected not to offset the fair value of assets with the fair value of liabilities related to these contracts. For determining the fair value of the interest rate swap contracts, the Company uses significant observable market data or assumptions (Level 2 inputs) that market participants would use in pricing similar assets or liabilities, including assumptions about counterparty risk. The fair value estimates reflect an income approach based on the terms of the interest rate swap contracts and inputs corroborated by observable market data including interest rate curves. The Company recognizes any differences between the variable interest rate payments and the fixed interest rate settlements with the swap counterparties as an adjustment to interest expense over the life of the swaps. The Company has designated these swaps as cash flow hedges and records the estimated fair value of the swaps to Accumulated other comprehensive income (loss) (“AOCI”) on its Consolidated Balance Sheets. If it becomes probable the forecasted transactions will not occur, the hedge relationship will be de-designated and amounts accumulated in AOCI will be reclassified to Interest and other non-operating expenses, net in the current period. Future changes in the fair value of derivatives not designated as hedging instruments will be reported in Interest and other non-operating expenses, net in the Consolidated Statements of Operations. Revenue recognition : The Company recognizes revenue when control over a product or service is transferred to a customer. This transfer occurs primarily when goods are picked up by a customer at the branch or when goods are delivered to a customer location. Revenue is measured at the transaction price, which is based on the amount of consideration the Company expects to receive in exchange for transferring the promised goods or services to the customer. The transaction price will include estimates of variable consideration, such as returns and provisions for doubtful accounts and sales incentives, to the extent it is probable that a significant reversal of revenue recognized will not occur. In all cases, when a sale is recorded by the Company, no significant uncertainty exists surrounding the customer’s obligation to pay. Net sales include billings for freight and handling charges and commissions on the sale of control products that we sell as an agent. Net sales are presented net of any discounts, returns, customer rebates, and sales or other revenue-based taxes. Provisions for returns are estimated and accrued at the time a sale is recognized. The Company also has entered into agency agreements with certain of its suppliers whereby the Company operates as a sales agent of those suppliers. The suppliers retain title to their merchandise until it is sold by the Company and determine the prices at which the Company can sell their merchandise. The Company recognizes these agency sales on a net basis and records only the product margin as commission revenue within Net sales. Sales incentives : The Company offers certain customers rebates which are accrued based on sales volumes. In addition, the Company offers a points-based reward program which allows enrolled customers to earn loyalty rewards on purchases to be used on future purchases, to pay for annual customer trips hosted by the Company, or to obtain gift cards to other third-party retailers. The Company often receives cash payments from customers in advance of the Company’s performance of the customer loyalty rewards program resulting in contract liabilities, which are determined on a contract-by-contract basis. These contract liabilities are classified in Accrued liabilities on the Company’s Consolidated Balance Sheets. Sales taxes : The Company collects and remits taxes assessed by different governmental authorities that are both imposed on and concurrent with revenue producing transactions between the Company and its customers. These taxes may include sales, use, value-added, and some excise taxes. The Company reports the collection of these taxes on a net basis (excluded from sales). Cost of goods sold : Cost of goods sold includes all inventory costs, such as the purchase price from suppliers, net of any volume-based incentives, as well as inbound freight and handling, and other costs associated with the inventory, and is exclusive of the costs to deliver the products to customers. Shipping and handling costs : Shipping and handling costs associated with inbound freight are included in Cost of goods sold. Warranty reserves : Provisions for estimated warranty costs for the return of nursery products are provided for in the same period the related sales are recorded. The Company offers product warranties on selected nursery items. The warranty reserve is based on historical and current trends. The warranty reserve included in Accrued liabilities was $0.1 million as of January 2, 2022 and January 3, 2021. Leases : The Company determines if an arrangement is a lease at inception of a contract. The Company leases equipment and real estate including office space, branch locations, and distribution centers under operating leases. Finance lease obligations consist primarily of the Company’s vehicle fleet. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one year to five years or more. The exercise of lease renewal options is at the Company’s sole discretion. Certain leases include options to purchase the leased property. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. Leases with an initial term of 12 months or less are not recorded in the Consolidated Balance Sheets. The Company accounts for each separate lease component of a contract and its associated non-lease components as a single lease component. Variable lease payment amounts that cannot be determined at the commencement of the lease such as increases in lease payments based on changes in index rates or usage, are not included in the ROU assets or lease liabilities and are expensed as incurred and recorded as variable lease expense. ROU assets represent the Company’s right to use an underlying asset during the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the commencement date based on the net present value of fixed lease payments over the lease term. ROU assets also include any advance lease payments and are adjusted for lease incentives. As most of the Company’s operating leases do not provide an implicit interest rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Finance lease agreements generally include an interest rate that is used to determine the present value of future lease payments. Operating fixed lease expense and finance lease amortization expense are recognized on a straight-line basis over the lease term. Refer to Note 6 for further details regarding leases. Advertising costs : Advertising costs are charged to expense as incurred and were $10.4 million, $4.7 million, and $3.3 million, during the years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. Stock-based compensation : The Company applies the fair value method to recognize compensation expense for stock-based awards. Using this method, the estimated grant-date fair value of the award is recognized on a straight-line basis over the requisite service period based on the portion of the award that is expected to vest. Stock-based compensation expense for restricted stock units is measured based on the fair value of the Company’s common stock on the grant date. The Company utilizes the Black-Scholes option pricing model to estimate the grant-date fair value of option awards. The exercise price of option awards is set to equal the value of the common stock at the date of the grant. The following weighted-average assumptions are also used to calculate the estimated fair value of option awards: • Expected volatility: The expected volatility of the Company’s shares is estimated using the historical stock price volatility over the most recent period commensurate with the estimated expected term of the awards. • Expected term: For employee stock option awards, the Company determines the weighted average expected term equal to the weighted period between the vesting period and the contract life of all outstanding options. • Dividend yield: The Company has not paid dividends and does not anticipate paying a cash dividend in the foreseeable future and, accordingly, uses an expected dividend yield of zero. • Risk-free interest rate: The Company bases the risk-free interest rate on the implied yield available on a U.S. Treasury note with a term equal to the estimated expected term of the awards. Refer to Note 7 for further details regarding stock-based compensation. Other income : Other income consists primarily of financing charges, net gain/loss on sale of assets, foreign currency gain/loss, and the fair value adjustments of acquisition related contingent obligations. Income taxes : The Company files a consolidated federal income tax return and files both combined or unitary state income tax returns as well as separate state income tax returns in certain jurisdictions. Deferred taxes are provided on an asset and liability method in which deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Realization of deferred tax assets is dependent upon sufficient future taxable income. The Company’s operations involve dealing with uncertainties and judgments in the application of complex tax regulations in a multitude of jurisdictions. The Company reports a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return based on its estimate of whether, and the extent to which, additional taxes will be due. The Company recognizes interest, if any, related to unrecognized tax benefits within Interest and other non-operating expenses, and recognizes penalties in Selling, general and administrative expenses. In March 2020, the CARES Act was enacted. The CARES Act included several changes to existing U.S. tax laws that impacted the Company, most notably the 2019 and 2020 change to the limitation on U.S. interest deductibility based on 50% of adjusted taxable income, the ability to defer the payment of qualifying employer payroll taxes to December 31, 2021 and December 31, 2022, and certain changes to the depreciable life of qualified improvement property. Refer to Note 9 for further information pertaining to income taxes. Foreign currency translation : The functional currency for the Company’s Canadian operations is the Canadian dollar, the local currency. The assets and liabilities of these operations are translated into U.S. dollars at the end of the period exchange rates. The revenues and expenses are translated at average exchange rates for the period. The gains or losses from these translations are recorded in other comprehensive income (loss). Gains or losses recognized on transactions denominated in a currency other than the functional currency are included in Other income. Recently Issued and Adopted Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, “ Leases (Topic 842), ” amended by subsequent ASUs (collectively “ASC 842”), which superseded the guidance for recognition, measurement, presentation, and disclosures of lease arrangements. The amended standard requires recognition on the balance sheet for all leases with terms longer than 12 months as a lease liability and as a right-of-use (“ROU”) asset. The lease liability is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis, and the ROU asset is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The Company adopted ASC 842 when it became effective in the first quarter of fiscal year 2019 using a modified transition approach under which prior comparative periods were not adjusted. The Company elected the package of practical expedients, which permitted not reassessing its prior conclusions about lease identification, lease classification, and initial direct costs. In addition, the Company made the election for certain classes of underlying assets to not separate non-lease components from lease components. However, the Company did not elect the lease term hindsight practical expedient. For leases less than 12 months, the Company made an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities as permitted by the guidance. The adoption of the new standard had a material impact on the Company’s Consolidated Balance Sheets, but an immaterial impact on its Consolidated Statements of Operations and Consolidated Statements of Cash Flows. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases, while the accounting for finance leases remained substantially unchanged. In February 2018, the FASB issued ASU 2018-02, “ Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ” (“ASU 2018-02”). The FASB provided ongoing guidance on certain accounting and tax effects of the legislation in the Tax Cuts and Jobs Act (the “2017 Tax Act”), which was enacted in December 2017. ASU 2018-02 allowed a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the 2017 Tax Act. The |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Jan. 02, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The following table presents Net sales disaggregated by product category (in millions): For the year January 4, 2021 to January 2, 2022 For the year December 30, 2019 to January 3, 2021 For the year December 31, 2018 to December 29, 2019 Landscaping products (a) $ 2,584.8 $ 1,980.9 $ 1,670.7 Agronomic and other products (b) 890.9 723.6 686.8 $ 3,475.7 $ 2,704.5 $ 2,357.5 ______________ (a) Landscaping products include irrigation supplies, hardscapes, landscape accessories, nursery goods, and outdoor lighting. (b) Agronomic and other products include fertilizer, control products, ice melt, equipment, and other products. Remaining Performance Obligations Remaining performance obligations related to ASC Topic 606 represent the aggregate transaction price allocated to performance obligations with an original contract term greater than one year that are fully or partially unsatisfied at the end of the period. Remaining performance obligations include the outstanding points balance related to the customer loyalty rewards program. The program allows enrolled customers to earn loyalty rewards on purchases to be used on future purchases, to pay for annual customer trips hosted by the Company, or to obtain gift cards to other third-party retailers. As of January 2, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was $8.8 million. The Company expects to recognize revenue on the remaining performance obligations over the next 12 months. Contract Balances The timing of revenue recognition, billings, and cash collections results in billed accounts receivable, deferred revenue, and billings in excess of revenue recognized in the Company’s Consolidated Balance Sheets. Contract liabilities As of January 2, 2022 and January 3, 2021, contract liabilities were $8.8 million and $5.7 million, respectively, and were included within Accrued liabilities in the accompanying Consolidated Balance Sheets. The increase in the contract liability balance during the year ended January 2, 2022 is primarily a result of cash payments received in advance of satisfying performance obligations, partially offset by $8.2 million of revenue recognized and the expiration of points related to the customer loyalty rewards program during the period. |
Acquisitions
Acquisitions | 12 Months Ended |
Jan. 02, 2022 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions From time to time, the Company enters into strategic acquisitions in an effort to better service existing customers and to attract new customers. The Company made various acquisitions during the years ended January 2, 2022, January 3, 2021, and December 29, 2019. The following acquisitions had an aggregate purchase price of $147.2 million, $160.6 million, $70.7 million, and deferred contingent consideration of $4.8 million, $12.4 million, and $6.4 million, for the years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. The aggregate assets acquired were $108.6 million, $129.1 million, and $69.5 million, aggregate liabilities assumed were $15.5 million, $26.9 million, and $22.1 million, and excess purchase price attributed to goodwill acquired was $58.9 million, $70.8 million, and $29.7 million for the years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. The Company has completed the acquisition accounting for each acquisition made during the 2019 Fiscal Year, the 2020 Fiscal Year, and the acquisition of Lucky Landscape Supply in February 2021. The Company has recorded the preliminary acquisition accounting for the remaining acquisitions completed during the 2021 Fiscal Year at their estimated fair values as of the respective acquisition dates. • In December 2021, the Company acquired the assets and assumed the liabilities of Bothe Trucking, Inc., doing business as Seffner Rock and Gravel (“Seffner”). With one location in Tampa, Florida, Seffner is a wholesale distributor of natural stone, bulk aggregates, mulch, soil, and other landscape supplies to landscape professionals. • In November 2021, the Company acquired the assets and assumed the liabilities of Semco Distributing, Inc. (“Semco”). With four locations in Ohio and Missouri, Semco is a wholesale distributor of natural stone and landscape supplies to landscape professionals. • In August 2021, the Company acquired the assets and assumed the liabilities of Green Brothers Earth Works and Southern Landscape Supply (“Green Brothers”). With four locations in the greater Atlanta, Georgia market, Green Brothers is a distributor of landscape supplies and hardscapes to landscape professionals. • In May 2021, the Company acquired all of the outstanding stock of Rodvold Enterprises, Inc., doing business as Rock & Block Hardscape Supply (“Rock & Block”). With two locations in the San Diego, Southern Orange County and Inland Empire markets in California, Rock & Block is a distributor of hardscapes, masonry, and landscape supplies to landscape professionals. • In April 2021, the Company acquired the assets and assumed the liabilities of Melrose Supply & Sales Corp (“Melrose”). With six locations throughout Florida, Melrose is a distributor of irrigation, lighting, and drainage products to landscape professionals. • In April 2021, the Company acquired all of the outstanding stock of Timberwall Landscape & Masonry Products, Inc. (“Timberwall”). With one location in Victoria, Minnesota, Timberwall is a distributor of hardscapes and landscape supplies to landscape professionals. • In April 2021, the Company acquired the assets and assumed the liabilities of Arizona Stone & Architectural Products and Solstice Stone (“Arizona Stone and Solstice”). With seven locations throughout Arizona and two locations in the Las Vegas, Nevada market, Arizona Stone and Solstice is a distributor of hardscapes, natural stone, and landscape supplies to landscape professionals. • In February 2021, the Company acquired the assets and assumed the liabilities of Lucky Landscape Supply, LLC (“Lucky Landscape Supply”). With one location in the greater Houston, Texas market, Lucky Landscape Supply is a distributor of nursery products to landscape professionals. • In December 2020, the Company acquired the assets and assumed the liabilities of Stone Center of Richmond, LLC and Stone Center of Fredericksburg, LLC (collectively, “Stone Center of Virginia”). With two locations in each of the Richmond and Fredericksburg, Virginia markets, Stone Center of Virginia is a distributor of hardscapes, natural stone, and landscape supplies to landscape professionals. • In December 2020, the Company acquired the assets and assumed the liabilities of Dirt and Rock, LLC (“Dirt and Rock”). With one location in the greater Atlanta, Georgia market, Dirt and Rock is a distributor of hardscapes, natural stone, and landscape supplies to landscape professionals. • In December 2020, the Company acquired the assets and assumed the liabilities of Alpine Materials (“Alpine”). With one location in the greater Dallas, Texas market, Alpine is a distributor of mulches, soils, and hardscape materials to landscape professionals. • In October 2020, the Company acquired the assets and assumed the liabilities of Hedberg Supply (“Hedberg”). With two locations in the Twin Cities, Minnesota market, Hedberg is a distributor of hardscapes, nursery, and landscape supplies to landscape professionals. • In October 2020, the Company acquired the assets and assumed the liabilities of BURNCO Landscape Centres Inc. (“BURNCO”). With 12 locations in the three Canadian provinces of British Columbia, Alberta, and Saskatchewan, BURNCO is a distributor of hardscapes and landscape supplies to landscape professionals. • In August 2020, the Company acquired all of the outstanding stock of Modern Builders Supply, Inc. (“Modern Builders”). With two locations in the San Diego, Southern Orange County and Inland Empire markets in California, Modern Builders is a distributor of hardscapes and landscape supplies to landscape professionals. • In August 2020, the Company acquired the assets and assumed the liabilities of Alliance Stone (“Alliance Stone”). With one location in the greater Atlanta, Georgia market, Alliance Stone is a distributor of hardscapes and natural stone to landscape professionals. • In March 2020, the Company acquired the assets and assumed the liabilities of Big Rock Natural Stone and Hardscapes, Inc. (“Big Rock”). With one location in the greater Greenville, South Carolina market, Big Rock is a distributor of hardscapes and landscape supplies to landscape professionals. • In January 2020, the Company acquired the assets and assumed the liabilities of The Garden Dept. Corp. (“Garden Dept.”). With three locations in the greater Long Island, New York market, Garden Dept. is a distributor of nursery and landscape supplies to landscape professionals. • In January 2020, the Company acquired the assets and assumed the liabilities of Empire Supplies (“Empire”). With three locations in the greater Newark-Union, New Jersey market, Empire is a distributor of hardscapes and landscape supplies to landscape professionals. • In January 2020, the Company acquired the assets and assumed the liabilities of Wittkopf Landscape Supply (“Wittkopf”). With two locations in the Spokane Valley, Washington market, Wittkopf is a distributor of hardscapes and landscape supplies to landscape professionals. • In December 2019, the Company acquired the assets and assumed the liabilities of Daniel Stone & Landscaping Supplies, Inc. (“Daniel Stone”). With one location in the greater Austin, Texas market, Daniel Stone is a distributor of hardscapes and landscape supplies to landscape professionals. • In December 2019, the Company acquired all of the members’ interests of Dirt Doctors, Inc. (“Dirt Doctors”). With three locations in the greater New England market, Dirt Doctors is a distributor of hardscapes and landscape supplies to landscape professionals. • In September 2019, the Company acquired the assets and assumed the liabilities of Design Outdoor, Inc. (“Design Outdoor”). With one location in the greater Reno/Lake Tahoe, Nevada area, Design Outdoor is a distributor of hardscapes products to landscape professionals. • In August 2019, the Company acquired the assets and assumed the liabilities of Trendset Concrete Products, Inc. (“Trendset”). With one location in the greater Seattle, Washington market, Trendset is a distributor of hardscapes products to landscape professionals. • In July 2019, the Company acquired the assets and assumed the liabilities of L.H. Voss Materials Dublin and its affiliates, Mt. Diablo Landscape Centers and Clark’s Home & Garden (collectively, “Voss”). With five locations across the East Bay in Northern California, Voss is a distributor of hardscapes and landscape supplies to landscape professionals. • In May 2019, the Company acquired the assets and assumed the liabilities of Stone and Soil Depot, Inc. (“Stone and Soil”). With three locations in the greater San Antonio, Texas market, Stone and Soil is a market leader in the distribution of hardscapes and landscape supplies to landscape professionals. • In April 2019, the Company acquired the assets and assumed the liabilities of Fisher’s Landscape Depot (“Fisher’s”). With two locations in Western Ontario, Canada, Fisher’s is a market leader in the distribution of hardscapes and landscape supplies to landscape professionals. • In April 2019, the Company acquired the assets and assumed the liabilities of Landscape Depot, Inc. (“Landscape Depot”). With three locations in the greater Boston, Massachusetts market, Landscape Depot is a market leader in the distribution of hardscapes and landscape supplies to landscape professionals. • In February 2019, the Company acquired the assets and assumed the liabilities of All Pro Horticulture, Inc. (“All Pro”). With one location in Long Island, New York, All Pro is a market leader in the distribution of agronomics and erosion control products to landscape professionals. • In January 2019, the Company acquired the assets and assumed the liabilities of Cutting Edge Curbing Sand & Rock (“Cutting Edge”). With one location in Phoenix, Arizona, Cutting Edge is a market leader in the distribution of hardscapes and landscape supplies to landscape professionals. These transactions were accounted for by the acquisition method, and accordingly, the results of operations were included in the Company’s consolidated financial statements from their respective acquisition dates. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Jan. 02, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment consisted of the following (in millions): January 2, 2022 January 3, 2021 Land $ 12.2 $ 12.2 Buildings and leasehold improvements: Buildings 7.8 7.8 Leasehold improvements 39.5 31.0 Branch equipment 81.0 58.6 Office furniture and fixtures and vehicles: Office furniture and fixtures 25.5 22.4 Vehicles 33.6 32.0 Finance lease right-of-use assets 77.5 64.5 Tooling 0.1 0.1 Construction in process 7.3 5.3 Total Property and equipment, gross 284.5 233.9 Less: accumulated depreciation and amortization 133.0 103.9 Total Property and equipment, net $ 151.5 $ 130.0 Amortization of finance ROU assets and depreciation expense was $36.2 million, $29.4 million, and $25.1 million for the years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. Capitalized software has an estimated useful life of three years. The amounts of total capitalized software costs, including purchased and internally developed software, included in Other assets at January 2, 2022 and January 3, 2021 were $12.8 million and $12.9 million, less accumulated amortization of $11.1 million and $9.4 million, respectively. Amortization of these software costs was $1.8 million, $2.1 million and $2.1 million for the years ended January 2, 2022, January 3, 2021 and December 29, 2019, respectively. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Jan. 02, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net Goodwill The changes in the carrying amount of goodwill for the years ended January 2, 2022 and January 3, 2021 are as follows (in millions): For the year For the year Beginning balance $ 250.6 $ 181.3 Goodwill acquired during the year 58.9 70.8 Goodwill adjusted during the year 1.6 (1.5) Ending balance $ 311.1 $ 250.6 Additions to goodwill during the years ended January 2, 2022 and January 3, 2021 related to the acquisitions during the 2021 Fiscal Year and the 2020 Fiscal Year as described in Note 3 . There have been no impairments of the Company’s goodwill for the years ended January 2, 2022 and January 3, 2021. Intangible Assets The following table summarizes the components of intangible assets (in millions, except weighted average remaining useful life): January 2, 2022 January 3, 2021 Weighted Average Remaining Useful Life Amount Accumulated Net Amount Accumulated Net Customer relationships 17.0 years $ 394.8 $ 197.3 $ 197.5 $ 340.5 $ 156.9 $ 183.6 Trademarks and other 3.7 years 34.1 17.7 16.4 25.8 13.1 12.7 Total intangibles $ 428.9 $ 215.0 $ 213.9 $ 366.3 $ 170.0 $ 196.3 During the year ended January 2, 2022, the Company recorded $62.6 million of intangible assets, including $54.3 million in Customer relationship intangibles and $8.3 million in Trademarks and other intangibles. The change in Customer relationship intangibles and Trademarks and other intangibles included additions of $54.2 million and $8.3 million, respectively, as a result of the acquisitions completed in 2021 as described in Note 3 . Foreign currency translation adjustments of Customer relationships and Trademarks and other intangibles related to prior year acquisitions were $0.1 million and zero, respectively. During the year ended January 3, 2021, the Company recorded $81.4 million of intangible assets, including $72.6 million in Customer relationship intangibles and $8.8 million in Trademarks and other intangibles. The change in Customer relationship intangibles and Trademarks and other intangibles included additions of $70.8 million and $8.6 million, respectively, as a result of the acquisitions completed in 2020 as described in Note 3 . Adjustments to purchase price allocations related to prior year acquisitions during the allowable measurement period of Customer relationship intangibles and Trademarks and other intangibles were $1.8 million and $0.2 million, respectively. The Customer relationship intangible assets will be amortized over a weighted-average period of approximately 20 years. The Trademarks and other intangible assets recorded will be amortized over a weighted-average period of approximately five years. Amortization expense for intangible assets for the years ended January 2, 2022, January 3, 2021, and December 29, 2019 was $45.0 million, $35.7 million, and $32.3 million, respectively. Total future amortization estimated as of January 2, 2022, is as follows (in millions): Fiscal year ending: 2022 $ 42.6 2023 34.8 2024 28.0 2025 22.5 2026 17.9 Thereafter 68.1 Total future amortization $ 213.9 |
Leases
Leases | 12 Months Ended |
Jan. 02, 2022 | |
Leases [Abstract] | |
Leases | Leases The components of lease expense were as follows (in millions): Lease cost Classification For the year January 4, 2021 to January 2, 2022 For the year December 30, 2019 to January 3, 2021 Finance lease cost Amortization of right-of-use assets Selling, general and administrative expenses $ 10.8 $ 9.1 Interest on lease liabilities Interest and other non-operating expenses, net 1.5 1.3 Operating lease cost Cost of goods sold 3.7 3.1 Operating lease cost Selling, general and administrative expenses 70.4 64.8 Short-term lease cost Selling, general and administrative expenses 1.5 1.9 Variable lease cost Selling, general and administrative expenses 0.9 0.6 Sublease income Selling, general and administrative expenses (1.1) (1.0) Total lease cost $ 87.7 $ 79.8 Supplemental cash flow information related to leases was as follows (in millions): Other information For the year January 4, 2021 to January 2, 2022 For the year December 30, 2019 to January 3, 2021 Cash paid for amounts included in the measurements of lease liabilities: Operating cash flows from finance leases $ 1.5 $ 1.3 Operating cash flows from operating leases $ 72.5 $ 66.0 Financing cash flows from finance leases $ 10.4 $ 8.5 Right-of-use assets obtained in exchange for new lease liabilities: Finance leases $ 14.2 $ 27.4 Operating leases $ 94.9 $ 79.9 The aggregate future lease payments for operating and finance leases as of January 2, 2022 were as follows (in millions): Maturity of Lease Liabilities Operating Leases Finance Leases Fiscal year: 2022 $ 68.8 $ 12.4 2023 64.7 11.8 2024 53.8 10.6 2025 42.3 7.7 2026 30.8 4.9 Thereafter 106.1 1.5 Total lease payments 366.5 48.9 Less: interest 60.2 3.5 Present value of lease liabilities $ 306.3 $ 45.4 Average lease terms and discount rates were as follows: Lease Term and Discount Rate January 2, 2022 Weighted-average remaining lease term Finance leases 4.4 years Operating leases 6.9 years Weighted-average discount rate Finance leases 3.6 % Operating leases 4.8 % |
Leases | Leases The components of lease expense were as follows (in millions): Lease cost Classification For the year January 4, 2021 to January 2, 2022 For the year December 30, 2019 to January 3, 2021 Finance lease cost Amortization of right-of-use assets Selling, general and administrative expenses $ 10.8 $ 9.1 Interest on lease liabilities Interest and other non-operating expenses, net 1.5 1.3 Operating lease cost Cost of goods sold 3.7 3.1 Operating lease cost Selling, general and administrative expenses 70.4 64.8 Short-term lease cost Selling, general and administrative expenses 1.5 1.9 Variable lease cost Selling, general and administrative expenses 0.9 0.6 Sublease income Selling, general and administrative expenses (1.1) (1.0) Total lease cost $ 87.7 $ 79.8 Supplemental cash flow information related to leases was as follows (in millions): Other information For the year January 4, 2021 to January 2, 2022 For the year December 30, 2019 to January 3, 2021 Cash paid for amounts included in the measurements of lease liabilities: Operating cash flows from finance leases $ 1.5 $ 1.3 Operating cash flows from operating leases $ 72.5 $ 66.0 Financing cash flows from finance leases $ 10.4 $ 8.5 Right-of-use assets obtained in exchange for new lease liabilities: Finance leases $ 14.2 $ 27.4 Operating leases $ 94.9 $ 79.9 The aggregate future lease payments for operating and finance leases as of January 2, 2022 were as follows (in millions): Maturity of Lease Liabilities Operating Leases Finance Leases Fiscal year: 2022 $ 68.8 $ 12.4 2023 64.7 11.8 2024 53.8 10.6 2025 42.3 7.7 2026 30.8 4.9 Thereafter 106.1 1.5 Total lease payments 366.5 48.9 Less: interest 60.2 3.5 Present value of lease liabilities $ 306.3 $ 45.4 Average lease terms and discount rates were as follows: Lease Term and Discount Rate January 2, 2022 Weighted-average remaining lease term Finance leases 4.4 years Operating leases 6.9 years Weighted-average discount rate Finance leases 3.6 % Operating leases 4.8 % |
Employee Benefit and Stock Ince
Employee Benefit and Stock Incentive Plans | 12 Months Ended |
Jan. 02, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit and Stock Incentive Plans | Employee Benefit and Stock Incentive Plans The Company sponsors a defined contribution benefit plan for substantially all of its employees. Company contributions to the plan are based on a percentage of employee wages. The Company’s contributions to the plan were $11.4 million, $9.6 million, and $8.5 million for the years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. The Company’s Omnibus Equity Incentive Plan (the “2016 Plan”), which became effective on April 28, 2016, provides for the grant of awards in the form of stock options that may be either incentive stock options or non-qualified stock options; stock purchase rights; restricted stock; restricted stock units (“RSUs”); performance shares; performance stock units (“PSUs”); stock appreciation rights (“SARs”); dividend equivalents; deferred stock units (“DSUs”); or other stock-based awards. The Company also has outstanding stock-based awards under its stock incentive plan (“Stock Incentive Plan”), which commenced in May 2014 and terminated upon adoption of the 2016 Plan. However, awards previously granted under the Stock Incentive Plan were unaffected by the termination of the Stock Incentive Plan. At the 2020 Annual Meeting of Stockholders of the Company on May 13, 2020 (the “Effective Date”), the Company’s stockholders approved the Company’s 2020 Omnibus Equity Incentive Plan (the “2020 Plan”), which replaced the 2016 Plan. The 2020 Plan reserves 2,155,280 shares of the Company’s common stock for issuance under the 2020 Plan, consisting of 1,600,000 new shares plus 555,280 shares that were previously authorized for issuance under the 2016 Plan and that, as of the Effective Date, were not subject to outstanding awards. No further grants of awards will be made under the 2016 Plan; however, outstanding awards granted under the 2016 Plan will remain outstanding and will continue to be administered in accordance with the terms of the 2016 Plan and the applicable award agreements. Any shares covered by an award, or any portion thereof, granted under the 2020 Plan, 2016 Plan, or Stock Incentive Plan that terminates, is forfeited, is repurchased, expires, or lapses for any reason will again be available for the grant of awards. Additionally, any shares tendered or withheld to satisfy the grant or exercise price or tax withholding obligations pursuant to any award under the 2020 Plan, 2016 Plan, or Stock Incentive Plan will again be available for issuance. The aggregate number of shares which may be issued under the 2020 Plan is 2,155,280 shares, of which 2,029,381 remain available as of January 2, 2022. The stock options and RSUs granted to employees vest over a four-year period at 25% per year. The DSUs granted to non-employee directors vest immediately but settlement is deferred until termination of the director’s service on the board or until a change of control of the Company. Stock options and RSUs expire ten years after the date of grant. PSUs granted to employees vest upon the achievement of the performance conditions, over a three-year period, measured by the growth of the Company’s pre-tax income plus amortization relative to a select peer group, subject to adjustment based upon the application of a return on invested capital modifier. The fair value of each stock option is estimated on the date of grant using the Black-Scholes options pricing model. Expected volatilities are based on the historical equity volatility of comparable publicly traded companies. The expected term of options granted is derived from the output of the option valuation model and represents the period of time that options granted are expected to be outstanding. The risk-free rates utilized for periods throughout the contractual life of the options are based on the U.S. Treasury security yields at the time of grant. The DSUs, RSUs, and PSUs have grant date fair values equal to the fair market value of the underlying stock on the date of grant. Share-based compensation expense is recognized in the financial statements based upon fair value on the date of grant. The compensation cost for stock options and RSUs is recognized on a straight-line basis over the requisite vesting period. The Company recognizes compensation expense for PSUs when it is probable that the performance conditions will be achieved. The Company reassesses the probability of vesting at each reporting period and adjusts its compensation cost accordingly. The estimated grant-date fair value of stock options is calculated using the Black-Scholes option-pricing model, based on the following weighted-average assumptions: January 2, 2022 January 3, 2021 December 29, 2019 Risk-free interest rate 0.70% 1.50% 2.52% Expected dividends — — — Expected volatility 28% 22% 25% Expected term 6.25 years 6.25 years 6.25 years The following table summarizes the information about stock options as of and for the years ended January 2, 2022 and January 3, 2021: Number of Weighted Weighted Average Aggregate Outstanding as of December 29, 2019 1,998.8 $ 26.67 5.98 years $ 127.5 Granted 139.9 102.38 Exercised (528.0) 18.55 Expired or forfeited (15.4) 54.63 Outstanding as of January 3, 2021 1,595.3 $ 35.73 5.60 years $ 196.0 Granted 75.0 167.42 Exercised (449.0) 20.69 Expired or forfeited (28.0) 102.99 Outstanding as of January 2, 2022 1,193.3 $ 48.09 5.19 years $ 231.7 Exercisable as of January 2, 2022 853.9 $ 30.15 4.23 years $ 181.1 Unvested and expected to vest after January 2, 2022 339.4 $ 93.21 7.60 years $ 50.6 The following table summarizes other stock-based compensation award activities for the year ended January 2, 2022 (in thousands): RSUs DSUs PSUs Outstanding as of January 3, 2021 174.1 41.0 44.2 Granted 84.7 4.5 19.9 Vested/Settled (60.5) — — Expired or forfeited (11.7) — (3.6) Outstanding as of January 2, 2022 186.6 45.5 60.5 The weighted average grant date fair value of awards granted during the year ended January 2, 2022 was as follows: Weighted Average Stock options $ 48.51 RSUs $ 171.20 DSUs $ 174.42 PSUs $ 166.15 A summary of stock-based compensation expenses recognized during the periods was as follows (in millions): For the year For the year Stock options $ 4.0 $ 4.7 RSUs 6.4 4.1 DSUs 0.6 0.8 PSUs 3.3 1.0 Total stock-based compensation $ 14.3 $ 10.6 A summary of unrecognized stock-based compensation expense as of January 2, 2022 was as follows: Unrecognized Compensation Weighted Average Stock options $ 5.5 2.3 years RSUs $ 16.4 2.8 years DSUs $ 0.2 0.8 years PSUs $ 2.6 1.8 years |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Jan. 02, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt was as follows (in millions): January 2, 2022 January 3, 2021 ABL facility $ — $ — Term loans 255.4 269.0 Hybrid debt instruments 4.8 — Total gross long-term debt 260.2 269.0 Less: unamortized debt issuance costs and discounts on debt (5.0) (5.5) Total debt $ 255.2 $ 263.5 Less: current portion (4.0) (2.8) Total long-term debt $ 251.2 $ 260.7 ABL Facility: SiteOne Landscape Supply Holding, LLC (“Landscape Holding”) and SiteOne Landscape Supply, LLC (“Landscape” and together with Landscape Holding, the “Borrowers”), each an indirect wholly-owned subsidiary of the Company, are parties to the credit agreement dated December 23, 2013 (as amended by the First Amendment to the Credit Agreement, dated June 13, 2014, the Second Amendment to the Credit Agreement, dated January 26, 2015, the Third Amendment to the Credit Agreement, dated February 13, 2015, the Fourth Amendment to the Credit Agreement, dated October 20, 2015, the Omnibus Amendment to the Credit Agreement, dated May 24, 2017, and the Sixth Amendment to the Credit Agreement, dated February 1, 2019, the “ABL Credit Agreement”) providing for an asset-based credit facility (the “ABL Facility”) of up to $375.0 million, subject to borrowing base availability. The ABL Facility is guaranteed by SiteOne Landscape Supply Bidco, Inc. (“Bidco”), an indirect wholly-owned subsidiary of the Company, and each direct and indirect wholly-owned U.S. restricted subsidiary of Landscape. The availability under the ABL Facility was $364.1 million and $362.3 million as of January 2, 2022 and January 3, 2021, respectively. Availability is determined using borrowing base calculations of eligible inventory and receivable balances less the current outstanding ABL Facility and letters of credit balances. On February 1, 2019, the Company entered into the Sixth Amendment to Credit Agreement, to among other things, (i) extend the termination date to February 1, 2024, (ii) increase the aggregate principal amount of the commitments under the ABL Credit Agreement to $375.0 million pursuant to an increase via use of the existing “incremental” commitment increase provisions of the ABL Credit Agreement, and (iii) amend certain terms of the ABL Credit Agreement and Guarantee and Collateral Agreement. The interest rate on the ABL Facility is LIBOR plus an applicable margin ranging from 1.25% to 1.75% or an alternate base rate for U.S. denominated borrowings plus an applicable margin ranging from 0.25% to 0.75%. There were no outstanding balances under the ABL Facility as of January 2, 2022 and January 3, 2021. Additionally, the Borrowers paid a commitment fee of 0.25% on the unfunded amount as of January 2, 2022 and January 3, 2021. The ABL Facility is subject to mandatory prepayments if the outstanding loans and letters of credit exceed either the aggregate revolving commitments or the current borrowing base, in an amount equal to such excess. Additionally, the ABL Facility is subject to various covenants, including incurrence covenants that require the Company to meet minimum financial ratios, and additional borrowings and other corporate transactions may be limited by failure to meet these financial ratios. Failure to meet any of these covenants could result in an event of default under these agreements. If an event of default occurs, the lenders could elect to declare all amounts outstanding under these agreements to be immediately due and payable, enforce their interest in collateral pledged under the agreement, or restrict the Borrowers’ ability to obtain additional borrowings under these agreements. The ABL Facility is secured by a first lien security interest over inventory and receivables and a second lien security interest over all other assets pledged as collateral. The ABL Facility contains customary representations and warranties and customary affirmative and negative covenants. The negative covenants consist of the following: financial condition, fundamental changes, dividends and distributions, acquisitions, dispositions of collateral, payments and modifications of restricted indebtedness, negative pledge clauses, changes in line of business, currency, commodity and other hedging transactions, transactions with affiliates, investments, indebtedness, and liens. The negative covenants are subject to the customary exceptions and also permit the payment of dividends and distributions, investments, permitted acquisitions and payments or redemptions of junior indebtedness upon satisfaction of a payment condition. As of January 2, 2022, the Company is in compliance with all of the ABL Facility covenants. Term Loans: The Borrowers entered into a syndicated senior term loan facility dated April 29, 2016, which was amended on November 23, 2016, May 24, 2017, December 12, 2017, and August 14, 2018. On March 23, 2021, the Borrowers entered into the Fifth Amendment to the Amended and Restated Credit Agreement (the “Fifth Amendment”), in order to, among other things, incur $325.0 million of term loans (the “New Term Loans”) which were used in part to prepay all of the existing Tranche E Term Loans. The New Term Loans are guaranteed by Bidco and each direct and indirect wholly-owned U.S. restricted subsidiary of Landscape. The New Term Loans are secured by a second lien security interest over inventory and receivables and a first lien security interest over all other assets pledged as collateral. The New Term Loans will mature on March 23, 2028. Amendments of the Term Loans: The Company through its subsidiaries entered into the Fifth Amendment, dated as of March 23, 2021, by and among the Borrowers, JPMorgan Chase Bank, N.A. (the “New Agent”), as administrative agent and collateral agent, the several banks and other financial institutions party thereto and certain other parties party thereto from time to time. The Fifth Amendment amends and restates the Amended and Restated Credit Agreement, dated as of April 29, 2016, among the Borrowers, the lenders from time to time party thereto and UBS AG, Stamford Branch (the “Existing Agent”) as administrative agent and collateral agent (as amended prior to March 23, 2021, the “Existing Credit Agreement” and, as so amended and restated pursuant to the Fifth Amendment, the “Second Amended and Restated Credit Agreement”) in order to, among other things, (i) incur $325.0 million of term loans, (ii) replace the Existing Agent as administrative and collateral agent with the New Agent, and (iii) make such other changes in the Second Amended and Restated Credit Agreement as agreed among the Borrowers and the lenders. Proceeds of the New Term Loans were used, among other things, (i) to repay in full the Tranche E Term Loans outstanding under the Existing Credit Agreement immediately prior to effectiveness of the Fifth Amendment, (ii) to pay fees and expenses related to the Fifth Amendment and the Second Amended and Restated Credit Agreement, and (iii) for working capital and other general corporate purposes. The New Term Loans bear interest, at Landscape Holding’s option, at either (i) an adjusted LIBOR rate plus an applicable margin equal to 2.00% (with a LIBOR floor of 0.50%) or (ii) an alternative base rate plus an applicable margin equal to 1.00%. Voluntary prepayments of the New Term Loans are permitted at any time, in minimum principal amounts, without premium or penalty, subject to a 1.00% premium payable in connection with certain repricing transactions within the first twelve months after the date of the initial funding of the New Term Loans. The interest rate on the outstanding balance of the New Terms Loans was 2.50% at January 2, 2022. The Second Amended and Restated Credit Agreement contains customary representations and warranties and customary affirmative and negative covenants. The negative covenants are limited to the following: limitations on indebtedness, restricted payments, restrictive agreements, sales of assets and subsidiary stock, transactions with affiliates, liens, fundamental changes, amendments, and lines of business. The negative covenants are subject to exceptions customary for transactions of the type. The New Term Loans are payable in consecutive quarterly installments equal to 0.25% of the aggregate initial principal amount of the New Term Loans until the maturity date. In addition, the New Term Loans are subject to annual mandatory prepayments in an amount equal to 50% of excess cash flow, as defined in the Second Amended and Restated Credit Agreement for the applicable fiscal year if 50% of excess cash flow exceeds $15.0 million and the secured leverage ratio is greater than 3.00 to 1.00. There are also mandatory prepayments with the proceeds of certain asset sales and from the issuance of debt not permitted to be incurred under the Second Amended and Restated Credit Agreement. As of January 2, 2022, the Company is in compliance with all of the Second Amended and Restated Credit Agreement covenants. On December 31, 2021, the Company paid down $68.0 million of the New Term Loans principal with cash on hand. As a result of the repayment, unamortized debt issuance costs and discounts in the amount of $0.9 million were charged to interest expense for the year ended January 2, 2022. On September 30, 2020 and December 31, 2020, the Company paid down $138.4 million and $31.0 million, respectively, of the Tranche E Term Loans principal with cash on hand. As a result of the repayments, unamortized debt issuance costs and discounts in the amount of $2.2 million were charged to interest expense for the year ended January 3, 2021. During the years ended January 2, 2022, January 3, 2021, and December 29, 2019, the Company incurred total interest expense of $19.2 million, $31.0 million, and $33.4 million, respectively, of which $14.7 million, $25.9 million, and $30.1 million, respectively, related to interest on the ABL Facility and the term loans. The debt issuance costs and discounts are amortized as interest expense over the life of the debt. As a result of the Fifth Amendment, unamortized debt issuance costs and discounts in the amount of $0.8 million were written off to expense and new debt fees and issuance costs of $2.4 million were capitalized during the year ended January 3, 2021, in accordance with ASC 470-50, “Debt Modifications and Extinguishments”. In addition, as a result of the amendment of the ABL Facility in February 2019, unamortized debt issuance costs and discounts in the amount of $0.4 million were written off to expense and new discounts and debt issuance costs of $0.9 million were capitalized during the year ended December 29, 2019. No gain or loss was recorded as it related to all participating lenders. Amortization expense related to debt issuance costs and discounts was $2.3 million, $4.1 million, and $2.0 million for the years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. The remaining $1.4 million, $1.0 million, and $0.9 million of interest expense is primarily related to interest attributable to finance leases, partially offset by interest income for the years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. Hybrid Debt Instruments: As a result of the determination that the Interest rate swap arrangements executed on March 23, 2021 are hybrid debt instruments containing embedded at-market swap derivatives, the Company reclassified $5.9 million from Accrued liabilities and Other long-term liabilities to long-term debt with $1.5 million classified as Long-term debt, current portion and $4.4 million classified as Long-term debt, less current portion on its Consolidated Balance Sheets during the first quarter of 2021. As of January 2, 2022, approximately $1.5 million was classified as Long-term debt, current portion and approximately $3.3 million was classified as Long-term debt, less current portion on the Company’s Consolidated Balance Sheets. Refer to “ Note 1 . Nature of Business and Significant Accounting Policies” and “Interest Rate Swaps” below for additional information regarding interest rate swaps and hybrid debt instruments. Maturities of long-term debt outstanding, in principal amounts at January 2, 2022 are summarized below (in millions): Fiscal year: 2022 $ 4.0 2023 4.1 2024 3.4 2025 3.0 2026 3.2 Thereafter 242.5 Total $ 260.2 Interest Rate Swaps The Company is subject to interest rate risk with regard to existing and future issuances of debt. The Company utilizes interest rate swap contracts to reduce its exposure to fluctuations in variable interest rates for future interest payments on existing debt. The Company is party to forward-starting interest rate swap contracts and interest rate swap contracts to convert the variable interest rate to a fixed interest rate on the borrowings under the term loans. The Company recognizes any differences between the variable interest rate payments and the fixed interest rate settlements with the swap counterparties as an adjustment to interest expense over the life of the swaps. The Company has designated these swaps as cash flow hedges and records the estimated fair value of the swaps to AOCI on its Consolidated Balance Sheets. If it becomes probable the forecasted transactions will not occur, the hedge relationship will be de-designated and amounts accumulated in AOCI will be reclassified to Interest and other non-operating expenses, net in the current period. On March 23, 2021, the Company restructured the interest rate swap positions of its Forward-starting interest rate swaps 4, 5, and 6 to extend the terms to maturity using a strategy commonly referred to as a “blend and extend” in order to continue to manage its exposure to interest rate risk on borrowings under the term loans. As a result of these transactions, all existing agreements for Forward-starting interest rate swaps 4, 5, and 6 were amended and restructured as new agreements designated by the Company as Interest rate swaps 7, 8, and 9 with the same counterparties. Each of the amended Interest rate swap agreements mature on March 23, 2025 and effectively blended the liability positions of the Forward-starting interest rate swaps into the Interest rate swaps and extended the term of the hedged positions. The Interest rate swaps are indexed to three-month LIBOR and net settled on a quarterly basis with the counterparties for the difference between the fixed rates and the variable rates based upon three-month LIBOR (subject to a floor of 0.50%) as applied to the notional amounts of each Interest rate swap. Due to the size of the initial net investment amounts resulting from the termination values of the Forward-starting interest rate swaps that were rolled into the Interest rate swap arrangements, Interest rate swaps 7, 8, and 9 were determined to be hybrid debt instruments containing embedded at-market interest rate swap derivatives. As a result, the Company bifurcated the derivative instruments from the debt host instruments for accounting purposes. Refer to “ Note 1 . Nature of Business and Significant Accounting Policies” and “Hybrid Debt Instruments” above for additional information regarding the Company’s hybrid debt instruments. The Company also de-designated the hedging relationships for Forward-starting interest rate swaps 1 and 2 on March 23, 2021. The swaps were not terminated upon de-designation; however, hedge accounting was discontinued since these swaps were no longer designated as hedging instruments. The related accumulated losses for these swaps remained in AOCI upon de-designation and were recognized in earnings at the time the hedged interest payments impacted earnings. As a result of the principal repayments of the Tranche E Term Loans on September 30, 2020 and December 31, 2020, the Company de-designated the hedging relationship for all of Forward-starting interest rate swap 6 and a portion of Forward-starting interest rate swap 5. The swaps were not terminated; however, hedge accounting was discontinued since these swaps were no longer designated as hedging instruments. Because the interest payments related to the repaid principal amounts were no longer probable of occurring, accumulated losses in the amount of $1.1 million were reclassified into income for the year ended January 3, 2021, which were included in Interest and other non-operating expenses, net in the Consolidated Statements of Operations and in Accrued expenses and other liabilities within Changes in operating assets and liabilities, net of the effects of acquisitions in the Consolidated Statements of Cash Flows. The following table provides additional details related to the swap contracts designated as hedging instruments as of January 2, 2022: Derivatives designated as hedging instruments Inception Date Effective Date Maturity Date Notional Amount Fixed Interest Rate Type of Hedge Forward-starting interest rate swap 3 December 17, 2018 July 14, 2020 January 14, 2024 $ 34.0 2.93450 % Cash flow Interest rate swap 7 March 23, 2021 March 23, 2021 March 23, 2025 $ 50.0 0.99500 % Cash flow Interest rate swap 8 March 23, 2021 March 23, 2021 March 23, 2025 $ 90.0 0.98600 % Cash flow Interest rate swap 9 March 23, 2021 March 23, 2021 March 23, 2025 $ 70.0 0.99784 % Cash flow The following table provides additional details related to the swap contracts not designated as hedging instruments, which were terminated upon maturity on June 11, 2021: Derivatives not designated as hedging instruments Inception Date Effective Date Maturity Date Notional Amount Fixed Interest Rate Forward-starting interest rate swap 1 June 30, 2017 March 11, 2019 June 11, 2021 $ 58.0 2.13450 % Forward-starting interest rate swap 2 June 30, 2017 March 11, 2019 June 11, 2021 $ 116.0 2.15100 % The following tables summarize the fair value of the derivative instruments and the respective lines in which they were recorded in the Consolidated Balance Sheets as of January 2, 2022 and January 3, 2021 (in millions): Derivative Assets January 2, 2022 January 3, 2021 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest rate contracts Other assets $ 2.5 Other assets $ — Total derivative assets $ 2.5 $ — Derivative Liabilities January 2, 2022 January 3, 2021 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest rate contracts Accrued liabilities $ 1.2 Accrued liabilities $ 2.2 Other long-term liabilities 0.6 Other long-term liabilities 2.6 Derivatives not designated as hedging instruments Interest rate contracts Accrued liabilities $ — Accrued liabilities $ 1.7 Other long-term liabilities — Other long-term liabilities 2.6 Total derivative liabilities $ 1.8 $ 9.1 As of January 2, 2022, the net fair value of the interest rate swaps in the amount of $1.8 million, net of taxes, was recorded in Accumulated other comprehensive loss including $0.6 million of accumulated gains related to derivatives designated as hedging instruments and $2.4 million of accumulated losses related to derivatives not designated as hedging instruments. To the extent the interest rate swaps designated as hedging instruments are determined to be ineffective, the Company recognizes the changes in the estimated fair value of the swaps in earnings. For the year ended January 2, 2022, there was no ineffectiveness recognized in earnings. The estimated net amount of the existing losses reported in Accumulated other comprehensive loss expected to be reclassified into earnings within the next 12 months was $3.1 million as of January 2, 2022. The ultimate amount recognized will vary based on fluctuations of interest rates through the maturity dates. The table below details pre-tax amounts in AOCI and gain (loss) reclassified into income for derivatives designated as cash flow hedges for the years ended January 2, 2022 and January 3, 2021 (in millions): January 2, 2022 January 3, 2021 Derivatives in Cash Flow Hedging Relationships Gain (Loss) Recorded in OCI Classification of Gain (Loss) Reclassified from AOCI into Income Gain (Loss) Reclassified from AOCI into Income Gain (Loss) Recorded in OCI Classification of Gain (Loss) Reclassified from AOCI into Income Gain (Loss) Reclassified from AOCI into Income Interest rate contracts $ 1.0 Interest and other non-operating expenses, net $ (2.2) $ (0.6) Interest and other non-operating expenses, net $ (4.1) The table below details gain (loss) recorded in income and reclassified from AOCI into income for derivatives not designated as hedging instruments for the years ended January 2, 2022 and January 3, 2021 (in millions): Gain (Loss) Reclassified from AOCI into Income Gain (Loss) Recognized in Income Derivatives not designated as hedging instruments Location of Gain (Loss) January 02, 2022 January 03, 2021 January 02, 2022 January 03, 2021 Interest rate contracts Interest and other non-operating expenses, net $ (2.4) $ (1.1) $ (0.1) $ (0.6) Failure of the swap counterparties to make payments would result in the loss of any potential benefit to the Company under the swap agreements. In this case, the Company would still be obligated to pay the variable interest payments underlying the debt agreements. Additionally, failure of the swap counterparties would not eliminate the Company’s obligation to continue to make payments under the existing swap agreements if it continues to be in a net pay position. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 02, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In March 2020, the CARES Act was enacted. The CARES Act included several changes to existing U.S. tax laws that impacted the Company, most notably the 2019 and 2020 change to the limitation on U.S. interest deductibility based on 50% of adjusted taxable income, the ability to defer the payment of qualifying employer payroll taxes to December 31, 2021 and December 31, 2022, and certain changes to the depreciable life of qualified improvement property. Refer to “ Note 1 . Nature of Business and Significant Accounting Policies” for additional information. The Company recorded Income tax expense of $56.1 million, $27.5 million, and $13.8 million for the years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. Components of Income before taxes were as follows (in millions): For the year For the year For the year U.S. $ 286.3 $ 144.5 $ 87.5 Foreign 8.2 4.3 4.0 Total $ 294.5 $ 148.8 $ 91.5 Components of Income tax expense were as follows (in millions): For the year For the year For the year Current income tax expense U.S. federal $ 44.1 $ 19.2 $ 11.7 U.S. state and local 12.4 7.5 4.4 Foreign 2.7 0.4 1.1 Total current 59.2 27.1 17.2 Deferred income tax (benefit) expense U.S. federal (1.8) 0.8 (2.0) U.S. state and local (0.7) (0.8) (1.3) Foreign (0.6) 0.4 (0.1) Total deferred (3.1) 0.4 (3.4) Total $ 56.1 $ 27.5 $ 13.8 The Company’s effective tax rate was 19.0%, 18.5%, and 15.1% for the years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. The following table provides a reconciliation of Income tax expense at the statutory U.S. federal tax rate to actual Income tax expense for the periods presented (in millions): For the year For the year For the year U.S. federal statutory expense $ 61.9 $ 31.2 $ 19.2 State and local income taxes, net (a) 9.1 5.1 2.2 Excess tax benefits (16.5) (8.9) (7.7) Other, net 1.6 0.1 0.1 Income tax expense $ 56.1 $ 27.5 $ 13.8 ______________ (a) Includes excess tax benefits pursuant to ASU 2016-09 of $(3.7) million, $(2.0) million, and $(1.9) million for the years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. Undistributed earnings of the Company’s foreign subsidiaries approximate $24.6 million as of January 2, 2022. Those earnings are considered indefinitely reinvested; accordingly, no provision for U.S. federal and state income taxes has been provided thereon. Upon repatriation of those earnings, in the form of dividends or otherwise, the Company may be subject to U.S. income taxes, state and local income taxes, and withholding taxes payable to the foreign country. From a U.S. income tax perspective, however, the Company expects to claim a 100% dividends received deduction to offset any U.S. federal income tax liability on the undistributed earnings. Determination of the amount of unrecognized state and local tax liability is not practicable due to the complexities associated with its hypothetical calculation. Withholding taxes of approximately $1.2 million may be payable upon remittance of all previously unremitted earnings as of January 2, 2022. Deferred income taxes reflect the expected future tax consequences of temporary differences between the financial statement carrying amount of the Company’s assets and liabilities, tax credits, and loss carryforwards. The significant components of deferred income taxes are as follows (in millions): January 2, 2022 January 3, 2021 Deferred tax assets: Net operating losses $ 4.3 $ 4.8 Allowance for uncollectible accounts 6.4 5.5 Inventory 3.4 2.7 Intangible assets 1.7 — Accrued compensation 3.3 2.4 Stock compensation 6.0 4.7 Deferred employer payroll taxes 1.5 3.1 Environmental reserve 0.6 0.6 Deferred transaction costs 2.4 2.0 Operating lease liabilities 79.0 68.4 Interest rate swaps — 2.3 Other 4.2 1.7 Total gross deferred tax assets 112.8 98.2 Valuation allowance (4.2) (4.5) Total net deferred tax assets 108.6 93.7 Deferred tax liabilities: Fixed assets and land (23.7) (17.8) Intangible assets — (4.9) Goodwill (9.1) (6.5) Deferred financing costs (0.2) (0.3) Operating lease right-of-use assets (75.7) (65.5) Interest rate swaps (0.2) — Other (1.6) (1.7) Total deferred tax liabilities (110.5) (96.7) Net deferred tax liabilities $ (1.9) $ (3.0) Deferred taxes are recorded as follows in the Consolidated Balance Sheets (in millions): January 2, 2022 January 3, 2021 U.S. state and local net deferred tax assets $ 2.8 $ 2.4 Foreign net deferred tax assets 0.4 — U.S. state and local and foreign net deferred tax assets 3.2 2.4 U.S. federal net deferred tax liabilities (5.1) (5.2) Foreign net deferred tax liabilities — (0.2) U.S. federal and foreign net deferred tax liabilities (5.1) (5.4) Net deferred tax liabilities $ (1.9) $ (3.0) The Company evaluates its deferred tax assets to determine the need for a valuation allowance, and to conclude whether it is more likely than not that those deferred income tax assets will be realized. Management assesses the available positive and negative evidence to establish whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. On the basis of this evaluation, as of January 2, 2022 and January 3, 2021, a valuation allowance of $4.2 million and $4.5 million, respectively, has been recorded against deferred tax assets related primarily to state net operating loss carryforwards the Company believes are more likely than not to expire unused. Activity within the tax valuation allowance for the periods was as follows (in millions): For the year For the year For the year Beginning balance $ 4.5 $ 4.6 $ 4.8 Decrease in valuation allowance (0.3) (0.1) (0.2) Ending balance $ 4.2 $ 4.5 $ 4.6 As of January 2, 2022, the Company had available tax-effected state NOL carryforwards of $4.3 million that generally expire at various dates through 2037, if not utilized. The Company recognizes the tax effects of uncertain tax positions only if such positions are more likely than not to be sustained based solely upon its technical merits at the reporting date. The Company refers to the difference between the tax benefit recognized in its financial statements and the tax benefit claimed in the income tax return as an unrecognized tax benefit. There was no expense or liability recorded for unrecognized tax benefits for each period presented. The Company does not expect that the unrecognized tax benefit will materially change over the next 12 months. The Company’s policy for recording interest and penalties, if any, associated with uncertain tax positions is to recognize interest within Interest and other non-operating expenses, and to recognize penalties as a component of Selling, general and administrative expenses in the Company’s Consolidated Statements of Operations. For each period presented, the Company had no accrued interest or penalties related to uncertain tax positions. The Company is subject to U.S. federal income tax, income tax in multiple state jurisdictions, and Canadian federal and provincial income tax with respect to its foreign subsidiaries. With limited exceptions, years prior to the 2018 Fiscal Year are no longer open to U.S. federal, state, and local examination by the taxing authorities. Deere has indemnified the Company against any taxes, penalties, or interest for tax periods prior to the CD&R Acquisition, accruing after the CD&R Acquisition date. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 02, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation : From time to time, the Company is subject to certain claims and lawsuits that have been filed in the ordinary course of business. The Company believes the reasonably possible range of losses for these unresolved legal actions in addition to amounts accrued would not have a material effect on the Company’s assets and liabilities as of January 2, 2022 and January 3, 2021 and revenues, expenses, changes in equity, and cash flows for the years ended January 2, 2022, January 3, 2021, and December 29, 2019. Environmental liability : As part of the sale by LESCO of its manufacturing assets in 2005, the Company retained the environmental liability associated with those assets. Remediation activities can vary substantially in duration and cost and it is difficult to develop precise estimates of future site remediation costs. The Company recorded in Other long-term liabilities the undiscounted cost estimate of future remediation efforts of $3.9 million and $3.6 million as of January 2, 2022 and January 3, 2021, respectively. As part of the CD&R Acquisition, Deere agreed to pay the first $2.5 million of the liability and the Company’s exposure is capped at $2.4 million. The Company has recorded an indemnification asset in Other assets against the liability as a result of these actions of $1.5 million and $1.2 million as of January 2, 2022 and January 3, 2021, respectively. Letters of credit : As of January 2, 2022 and January 3, 2021, outstanding letters of credit were $10.9 million and $8.7 million, respectively. There were no amounts drawn on the letters of credit for either period presented. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Jan. 02, 2022 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share The Company computes basic earnings (loss) per share (“EPS”) by dividing Net income (loss) attributable to common shares by the weighted average number of common shares outstanding for the period. The Company includes vested DSUs and PSUs that have not been settled in common shares in the basic weighted average number of common shares calculation. The Company’s computation of diluted EPS reflects the potential dilution that could occur if dilutive securities or other obligations to issue common stock were exercised or converted into common stock, which include in-the-money outstanding stock options and RSUs. PSUs are excluded from the calculation of dilutive potential common shares until the performance conditions have been achieved on the basis of the assumption that the end of the reporting period was the end of the contingency period, if such shares issuable are dilutive. Using the treasury stock method, the effect of dilutive securities includes the additional shares of common stock that would have been outstanding based on the assumption that these potentially dilutive securities had been issued. The calculation of the effect of dilutive securities excludes any derived excess tax benefits or deficiencies from assumed future proceeds. RSUs and stock options with exercise prices that are higher than the average market prices of the Company’s common stock for the periods presented are excluded from the diluted EPS calculation because the effect is anti-dilutive. The following table sets forth the computation of the weighted average number of diluted common shares outstanding for the periods ended January 2, 2022, January 3, 2021, and December 29, 2019: For the year For the year For the year Shares used in the computation of basic earnings per share 44,578,649 42,858,691 41,218,843 Effect of dilutive securities: Stock options 1,066,589 1,153,367 1,471,361 RSUs and PSUs 156,074 73,321 48,416 DSUs 4,061 8,122 11,728 Shares used in the computation of diluted earnings per share 45,805,373 44,093,501 42,750,348 The diluted earnings per common share calculation for the years ended January 2, 2022, January 3, 2021, and December 29, 2019 excluded the effect of 4,690, 5,730, and 258,829 potential shares of common stock, respectively, because the assumed exercises of a portion of the Company’s employee stock options and RSUs were anti-dilutive |
Schedule I - SiteOne Landscape
Schedule I - SiteOne Landscape Supply, Inc.’s Condensed Financial Statements | 12 Months Ended |
Jan. 02, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule I - SiteOne Landscape Supply, Inc.’s Condensed Financial Statements | SiteOne Landscape Supply, Inc. Parent Company Only Condensed Balance Sheets (In millions, except share data) January 2, 2022 January 3, 2021 Assets Investment in wholly owned subsidiary $ 1,057.1 $ 794.3 Deferred tax asset (Note 3) 0.6 0.7 Total assets $ 1,057.7 $ 795.0 Liabilities and Stockholders' Equity Total liabilities $ — $ — Stockholders' Equity: Common stock, par value $0.01; 1,000,000,000 shares authorized; 44,788,385 and 44,300,380 shares issued, and 44,767,474 and 44,279,469 shares outstanding at January 2, 2022 and January 3, 2021, respectively 0.4 0.4 Additional paid in capital 562.0 541.8 Retained Earnings 497.5 259.1 Accumulated other comprehensive loss (2.2) (6.3) Total stockholders' equity 1,057.7 795.0 Total liabilities and stockholders' equity $ 1,057.7 $ 795.0 See Notes to Condensed Financial Statements. SiteOne Landscape Supply, Inc. Parent Company Only Condensed Statements of Operations and Comprehensive Income (In millions) For the year January 4, 2021 December 30, 2019 December 31, 2018 to January 2, 2022 to January 3, 2021 to December 29, 2019 Equity in Net income of subsidiary $ 238.4 $ 121.3 $ 77.7 Income before taxes 238.4 121.3 77.7 Net income $ 238.4 $ 121.3 $ 77.7 Other comprehensive income (loss), net of tax 4.1 0.2 (5.7) Comprehensive income $ 242.5 $ 121.5 $ 72.0 See Notes to Condensed Financial Statements. SiteOne Landscape Supply, Inc. Parent Company Only Condensed Statements of Cash Flows (In millions) For the year January 4, 2021 December 30, 2019 December 31, 2018 to January 2, 2022 to January 3, 2021 to December 29, 2019 Cash Flows from Operating Activities: Net income $ 238.4 $ 121.3 $ 77.7 Adjustments to reconcile Net income to net cash provided by operating activities: Equity in Net income of subsidiary (238.4) (121.3) (77.7) Net cash provided by operating activities $ — $ — $ — Cash Flows from Investing Activities: Distribution to subsidiary — (261.7) — Net cash used in investing activities $ — $ (261.7) $ — Cash Flows from Financing Activities: Equity proceeds from common stock — 261.7 — Net cash provided by financing activities $ — $ 261.7 $ — Net change in cash and cash equivalents — — — Cash and cash equivalents: Beginning — — — Ending $ — $ — $ — See Notes to Condensed Financial Statements. Note 1. Description of SiteOne Landscape Supply, Inc. SiteOne Landscape Supply, Inc. (“Holdings” or the “Parent”) indirectly owns 100% of the membership interest in SiteOne Landscape Supply Holding, LLC (“Landscape Holding” or “subsidiary”), which it acquired from Deere & Company on December 23, 2013 (the “Closing Date”) in exchange for its common stock initially representing 40% of the outstanding capital stock (on an as-converted basis). In addition, Holdings issued cumulative convertible participating redeemable preferred stock (“Redeemable Convertible Preferred Stock”) to Clayton, Dubilier & Rice, LLC (“CD&R”) initially representing 60% of its remaining outstanding capital stock (on an as-converted basis) (both events collectively referred to herein as the “CD&R Acquisition”). On May 2, 2016, Holdings paid a one-time special cash dividend to all existing stockholders as of April 29, 2016. CD&R received $112.4 million in accordance with its right to participate in all distributions to common stock on an as-converted basis, in accordance with its right as a preferred stockholder. On the day prior to the closing of the initial public offering, all of the then-outstanding Redeemable Convertible Preferred Stock converted into shares of common stock, resulting in the issuance by Holdings of an additional 25,303,164 shares of common stock. On December 5, 2016, May 1, 2017, and July 26, 2017, Holdings completed secondary offerings of its common stock in which Deere and CD&R were the sole sellers. Following consummation of the secondary offering on July 26, 2017, CD&R and Deere no longer have an ownership interest in Holdings. Holdings has no significant operations or assets other than its indirect ownership of the equity of Landscape Holding. Accordingly, Holdings is dependent upon distributions from Landscape Holding to fund its obligations. However, under the terms of Landscape Holding’s credit agreements governing Landscape Holding’s ABL Facility and New Term Loans, Landscape Holding’s ability to pay dividends or lend to Holdings is restricted. Landscape Holding has no obligation to pay dividends to Holdings except to pay specified amounts to Holdings in order to fund the payment of Holdings’ tax obligations. Stock Offering On August 3, 2020, Holdings entered into the Underwriting Agreement with BofA Securities, Inc., relating to an underwritten public offering of 2,150,000 shares of its common stock, $0.01 par value per share. Under the terms of the Underwriting Agreement, Holdings granted the Underwriter an option, exercisable for 30 days, to purchase up to an additional 322,500 shares of Common Stock. The Underwriter did not exercise the option to purchase additional shares of Common Stock. The aggregate proceeds to Holdings from the sale of shares of Common Stock in the offering were approximately $262.3 million before expenses of approximately $0.6 million. The offering closed on August 6, 2020. Note 2. Basis of Presentation The accompanying Condensed Parent Company Only Financial Statements include the amounts of Holdings and its investment in subsidiary since the Closing Date under the equity method, and do not present the financial statements of Holdings and its subsidiary on a consolidated basis. Under the equity method, investment in subsidiary is stated at cost plus contributions and equity in undistributed income (loss) of subsidiary less distributions received since the date of acquisition. The condensed Parent Company Only Financial Statements should be read in conjunction with SiteOne Landscape Supply, Inc. Consolidated Financial Statements and their accompanying Notes to Consolidated Financial Statements. Note 3. Income Taxes In connection with the CD&R Acquisition, transaction expenses of $9.8 million were recorded within the period ended December 29, 2013. Of the $9.8 million of transaction expenses, $3.7 million were not deductible for tax purposes and the remaining $6.1 million ($2.2 million tax-effected) were capitalized for tax purposes as a deferred tax asset. Amortization of the deferred tax asset for the years ended January 2, 2022 and January 3, 2021 was $0.4 million ($0.1 million tax-effected) and $0.4 million ($0.1 million tax-effected), respectively, which gives rise to a net operating loss and current tax benefit that offsets the deferred tax expense by the same amount. As of January 2, 2022, the deferred tax asset related to these transaction expenses has a balance of $0.6 million. In March 2020, the CARES Act was enacted. The CARES Act included several changes to existing U.S. tax laws that impacted Holdings, most notably the 2019 and 2020 change to the limitation on U.S. interest deductibility based on 50% of adjusted taxable income, the ability to defer the payment of qualifying employer payroll taxes to December 31, 2021 and December 31, 2022, and certain changes to the depreciable life of qualified improvement property. |
Nature of Business and Signif_2
Nature of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 02, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Financial Statement Presentation | Basis of Financial Statement Presentation Holdings indirectly owns 100% of the membership interest in SiteOne Landscape Supply Holding, LLC (referred to herein as “Landscape Holding”). Landscape Holding is the parent and sole owner of SiteOne Landscape Supply, LLC (referred to herein as “Landscape”). Prior to the transaction described below, Deere & Company (“Deere”) was the sole owner of SiteOne Landscape Supply Holding, LLC. On December 23, 2013 (the “Closing Date”), the Company acquired 100% of the ownership interest in Landscape Holding from Deere in exchange for common shares of the Company initially representing 40% of the outstanding capital stock (on an as-converted basis) plus cash consideration of $314 million, net of pre-closing and post-closing adjustments. In order to facilitate the transaction, the Company issued Redeemable Convertible Preferred Stock to Clayton, Dubilier & Rice, LLC (“CD&R”) for total consideration of $174 million initially representing 60% of the outstanding capital stock (on an as-converted basis). As part of the same transaction, Landscape Holding also acquired from Deere the affiliated company LESCO, Inc. (“LESCO”). The Company continues to be the sole owner of Landscape Holding. The aforementioned transactions described in this paragraph are referred to herein as the “CD&R Acquisition”. On May 17, 2016, the Company completed its initial public offering of its common stock and following consummation of the Company’s secondary offering on July 26, 2017, CD&R and Deere no longer have an ownership interest in the Company. The Company’s chief operating decision maker (“CODM”) manages the business as a single reportable segment. Within the organizational framework, the same operational resources support multiple geographical regions and performance is evaluated primarily by the CODM at a consolidated level. The CODM also evaluates regional performance based on financial and operational measures and receives discrete financial information on a regional basis. Since all of the Company’s regions have similar operations and share similar economic characteristics, the Company aggregates regions into a single operating and reportable segment. These similarities include (i) long-term financial performance, (ii) the nature of products and services, (iii) the types of customers the Company sells to, and (iv) the distribution methods used. Further, all of the Company’s product categories have similar supply chain processes and classes of customers. The accompanying audited consolidated financial statements of the Company included herein have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The Consolidated Statements of Operations, Comprehensive Income, Equity, and Cash Flows for the Company are presented for the fiscal years ended January 2, 2022, January 3, 2021, and December 29, 2019. The consolidated financial statements for the Company include the assets and liabilities used in operating the Company’s business, including entities in which the Company owns or controls more than 50% of the voting shares. All of the Company’s subsidiaries are wholly owned. All intercompany balances and transactions have been eliminated in consolidation. |
Use of estimates in the preparation of financial statements | Use of estimates in the preparation of financial statements: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and 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. Actual results could differ from those estimates. |
Fiscal year | Fiscal year : The Company’s fiscal year is a 52- or 53-week period ending on the Sunday nearest to December 31. The years ended January 2, 2022, January 3, 2021, and December 29, 2019 included 52 weeks, 53 weeks, and 52 weeks, respectively. |
Cash and cash equivalents | Cash and cash equivalents: Cash and cash equivalents include primarily cash on deposit with banks which, at times, may exceed federally insured limits. The Company has not experienced any losses in these accounts. Cash and cash equivalents also include unsettled credit card transactions. |
Accounts receivables | Accounts receivable : Accounts receivable is presented at the original invoice amount, less any charge-offs and the allowance for credit losses and doubtful accounts. Allowances for credit losses and doubtful accounts are maintained in amounts considered to be appropriate in relation to the receivables outstanding based on collection experience, economic conditions, credit risk quality, and reasonable supportable forecasts. Receivables are written-off to the allowance when an account is considered uncollectible. |
Inventory | Inventory: The majority of the Company’s inventories are valued at the lower of actual cost or estimated net realizable value, with cost determined by the first-in, first-out (“FIFO”) method. Inventory is primarily considered to be finished goods. The Company establishes a reserve for excess, slow-moving, and obsolete inventory that is equal to the difference between the cost and estimated net realizable value for that inventory. These reserves are based on a review of planned and historical sales. |
Property and equipment, net | Property and equipment, net : Property and equipment is stated at cost less accumulated depreciation. Depreciation is computed on property and equipment using the straight-line method over the estimated useful lives of the assets, as noted below. Leasehold improvements are depreciated over the lesser of their estimated useful lives or the remaining lease terms. The amortization of the right-of-use (“ROU”) assets under finance leases is included in amortization expense. Expenditures for replacement or major renewals of significant items are capitalized. Expenditures for maintenance, repairs, and minor renewals are generally charged to expense as incurred. Asset Class Estimated Useful Life Buildings and improvements 20 years Branch equipment 2 to 12 years Furniture and fixtures 2 to 12 years Auto and truck 2 to 6 years Tooling 7 years Leasehold improvements Shorter of the estimated useful life or the term of the lease, considering renewal options expected to be exercised. Impairment of long-lived assets : Long-lived assets, primarily property and equipment, finite-lived intangible assets, and long-term contracts included in other assets, are evaluated for impairment whenever events or changes in circumstances indicate the carrying value of an asset group may not be recoverable. The recoverability of an asset group is measured by a comparison of the carrying amount of the asset group to its future undiscounted cash flows. |
Acquisitions | Acquisitions : When the Company acquires a controlling financial interest in an entity or group of assets that are determined to meet the definition of a business, the acquisition method described in ASC Topic 805, Business Combinations, is applied. The Company allocates the purchase consideration paid to acquire the business to the assets and liabilities acquired based on estimated fair values at the acquisition date, with the excess of purchase price over the estimated fair value of the net assets acquired recorded as goodwill. If during the measurement period (a period not to exceed 12 months from the acquisition date) the Company receives additional information that existed as of the acquisition date but at the time of the original allocation described above was unknown, the Company makes the appropriate adjustments to the purchase price allocation in the reporting period in which the adjustments are identified. |
Goodwill | Goodwill : Goodwill represents the acquired fair value of a business in excess of the fair values of tangible and identified intangible assets acquired and liabilities assumed. The Company tests goodwill on an annual basis as of July fiscal month-end and additionally if an event occurs or circumstances change that would indicate the carrying amount may be impaired. Examples of such indicators include a significant change in the business climate, unexpected competition, loss of key personnel, or a decline in the Company’s market capitalization below the Company’s net book value. The Company performs impairment assessments at the reporting unit level, which is defined as an operating segment or one level below an operating segment, also known as a component. |
Intangible assets, net | Intangible assets, net: Intangible assets include customer relationships as well as trademarks and other intangibles acquired through acquisitions. The fair value of customer relationships is determined using the multi-period excess earnings method, which is a specific discounted cash flow method that requires management to make significant estimates and assumptions, including the selection of the discount rates. Intangibles assets with finite useful lives are amortized on an accelerated method or a straight-line of amortization over their estimated useful lives. An accelerated amortization method reflecting the pattern in which the asset will be consumed is utilized if that pattern can be reliably determined. If that pattern cannot be reliably determined, a straight-line amortization method is used. The Company considers the period of expected cash flows and the underlying data used to measure the fair value of the intangible assets when selecting a useful life. The majority of customer relationships are amortized on an accelerated method. |
Fair value measurement | Fair value measurement : Fair value is defined as an exit price, representing an amount that would be received to sell an asset or the amount paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The inputs used to measure fair value are prioritized into the following three-tiered value hierarchy: • Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2: Unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active or inputs, other than quoted prices in active markets, which are observable either directly or indirectly. • Level 3: Unobservable inputs for which there is little or no market data. The hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The classification of fair value measurement within the hierarchy is based upon the lowest level of input that is significant to the measurement. |
Interest Rate Swaps | Interest Rate Swaps : The Company is subject to interest rate risk with regard to existing and future issuances of debt. The Company utilizes interest rate swap contracts to reduce its exposure to fluctuations in variable interest rates for future interest payments on existing debt. The Company has also amended and restructured its interest rate swap contracts using a strategy commonly referred to as a “blend and extend”. In a blend and extend arrangement, the liability position of the existing interest rate swap arrangement is effectively blended into the amended or new interest rate swap arrangement and the term to maturity of the hedged position is extended. The Company evaluates its blend and extend arrangements under Accounting Standards Codification (“ASC”), Topic 815: Derivatives and Hedging, to determine if they are stand-alone derivative instruments or hybrid instruments. The Company recognizes the unrealized gains or unrealized losses for interest rate swap contracts as either assets or liabilities at fair value on its Consolidated Balance Sheets. The interest rate swap contracts are subject to master netting arrangements. The Company has elected not to offset the fair value of assets with the fair value of liabilities related to these contracts. For determining the fair value of the interest rate swap contracts, the Company uses significant observable market data or assumptions (Level 2 inputs) that market participants would use in pricing similar assets or liabilities, including assumptions about counterparty risk. The fair value estimates reflect an income approach based on the terms of the interest rate swap contracts and inputs corroborated by observable market data including interest rate curves. The Company recognizes any differences between the variable interest rate payments and the fixed interest rate settlements with the swap counterparties as an adjustment to interest expense over the life of the swaps. The Company has designated these swaps as cash flow hedges and records the estimated fair value of the swaps to Accumulated other comprehensive income (loss) (“AOCI”) on its Consolidated Balance Sheets. If it becomes probable the forecasted transactions will not occur, the hedge relationship will be de-designated and amounts accumulated in AOCI will be reclassified to Interest and other non-operating expenses, net in the current period. Future changes in the fair value of derivatives not designated as hedging instruments will be reported in Interest and other non-operating expenses, net in the Consolidated Statements of Operations. |
Revenue recognition | Revenue recognition : The Company recognizes revenue when control over a product or service is transferred to a customer. This transfer occurs primarily when goods are picked up by a customer at the branch or when goods are delivered to a customer location. Revenue is measured at the transaction price, which is based on the amount of consideration the Company expects to receive in exchange for transferring the promised goods or services to the customer. The transaction price will include estimates of variable consideration, such as returns and provisions for doubtful accounts and sales incentives, to the extent it is probable that a significant reversal of revenue recognized will not occur. In all cases, when a sale is recorded by the Company, no significant uncertainty exists surrounding the customer’s obligation to pay. Net sales include billings for freight and handling charges and commissions on the sale of control products that we sell as an agent. Net sales are presented net of any discounts, returns, customer rebates, and sales or other revenue-based taxes. Provisions for returns are estimated and accrued at the time a sale is recognized. The Company also has entered into agency agreements with certain of its suppliers whereby the Company operates as a sales agent of those suppliers. The suppliers retain title to their merchandise until it is sold by the Company and determine the prices at which the Company can sell their merchandise. The Company recognizes these agency sales on a net basis and records only the product margin as commission revenue within Net sales. Sales incentives : The Company offers certain customers rebates which are accrued based on sales volumes. In addition, the Company offers a points-based reward program which allows enrolled customers to earn loyalty rewards on purchases to be used on future purchases, to pay for annual customer trips hosted by the Company, or to obtain gift cards to other third-party retailers. The Company often receives cash payments from customers in advance of the Company’s performance of the customer loyalty rewards program resulting in contract liabilities, which are determined on a contract-by-contract basis. These contract liabilities are classified in Accrued liabilities on the Company’s Consolidated Balance Sheets. Sales taxes : The Company collects and remits taxes assessed by different governmental authorities that are both imposed on and concurrent with revenue producing transactions between the Company and its customers. These taxes may include sales, use, value-added, and some excise taxes. The Company reports the collection of these taxes on a net basis (excluded from sales). Cost of goods sold : Cost of goods sold includes all inventory costs, such as the purchase price from suppliers, net of any volume-based incentives, as well as inbound freight and handling, and other costs associated with the inventory, and is exclusive of the costs to deliver the products to customers. Shipping and handling costs : Shipping and handling costs associated with inbound freight are included in Cost of goods sold. |
Warranty reserves | Warranty reserves: Provisions for estimated warranty costs for the return of nursery products are provided for in the same period the related sales are recorded. The Company offers product warranties on selected nursery items. The warranty reserve is based on historical and current trends. |
Leases | Leases : The Company determines if an arrangement is a lease at inception of a contract. The Company leases equipment and real estate including office space, branch locations, and distribution centers under operating leases. Finance lease obligations consist primarily of the Company’s vehicle fleet. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one year to five years or more. The exercise of lease renewal options is at the Company’s sole discretion. Certain leases include options to purchase the leased property. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. Leases with an initial term of 12 months or less are not recorded in the Consolidated Balance Sheets. The Company accounts for each separate lease component of a contract and its associated non-lease components as a single lease component. Variable lease payment amounts that cannot be determined at the commencement of the lease such as increases in lease payments based on changes in index rates or usage, are not included in the ROU assets or lease liabilities and are expensed as incurred and recorded as variable lease expense. |
Advertising costs | Advertising costs: Advertising costs are charged to expense as incurred |
Stock-based compensation | Stock-based compensation : The Company applies the fair value method to recognize compensation expense for stock-based awards. Using this method, the estimated grant-date fair value of the award is recognized on a straight-line basis over the requisite service period based on the portion of the award that is expected to vest. Stock-based compensation expense for restricted stock units is measured based on the fair value of the Company’s common stock on the grant date. The Company utilizes the Black-Scholes option pricing model to estimate the grant-date fair value of option awards. The exercise price of option awards is set to equal the value of the common stock at the date of the grant. The following weighted-average assumptions are also used to calculate the estimated fair value of option awards: • Expected volatility: The expected volatility of the Company’s shares is estimated using the historical stock price volatility over the most recent period commensurate with the estimated expected term of the awards. • Expected term: For employee stock option awards, the Company determines the weighted average expected term equal to the weighted period between the vesting period and the contract life of all outstanding options. • Dividend yield: The Company has not paid dividends and does not anticipate paying a cash dividend in the foreseeable future and, accordingly, uses an expected dividend yield of zero. • Risk-free interest rate: The Company bases the risk-free interest rate on the implied yield available on a U.S. Treasury note with a term equal to the estimated expected term of the awards. |
Other income | Other income : Other income consists primarily of financing charges, net gain/loss on sale of assets, foreign currency gain/loss, and the fair value adjustments of acquisition related contingent obligations. |
Income taxes | Income taxes : The Company files a consolidated federal income tax return and files both combined or unitary state income tax returns as well as separate state income tax returns in certain jurisdictions. Deferred taxes are provided on an asset and liability method in which deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Realization of deferred tax assets is dependent upon sufficient future taxable income. The Company’s operations involve dealing with uncertainties and judgments in the application of complex tax regulations in a multitude of jurisdictions. The Company reports a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return based on its estimate of whether, and the extent to which, additional taxes will be due. The Company recognizes interest, if any, related to unrecognized tax benefits within Interest and other non-operating expenses, and recognizes penalties in Selling, general and administrative expenses. |
Foreign currency translation | Foreign currency translation : The functional currency for the Company’s Canadian operations is the Canadian dollar, the local currency. The assets and liabilities of these operations are translated into U.S. dollars at the end of the period exchange rates. The revenues and expenses are translated at average exchange rates for the period. The gains or losses from these translations are recorded in other comprehensive income (loss). Gains or losses recognized on transactions denominated in a currency other than the functional currency are included in Other income. |
Recently Issued and Adopted Accounting Pronouncements and Accounting Pronouncements Issued But Not Yet Adopted | Recently Issued and Adopted Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, “ Leases (Topic 842), ” amended by subsequent ASUs (collectively “ASC 842”), which superseded the guidance for recognition, measurement, presentation, and disclosures of lease arrangements. The amended standard requires recognition on the balance sheet for all leases with terms longer than 12 months as a lease liability and as a right-of-use (“ROU”) asset. The lease liability is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis, and the ROU asset is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The Company adopted ASC 842 when it became effective in the first quarter of fiscal year 2019 using a modified transition approach under which prior comparative periods were not adjusted. The Company elected the package of practical expedients, which permitted not reassessing its prior conclusions about lease identification, lease classification, and initial direct costs. In addition, the Company made the election for certain classes of underlying assets to not separate non-lease components from lease components. However, the Company did not elect the lease term hindsight practical expedient. For leases less than 12 months, the Company made an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities as permitted by the guidance. The adoption of the new standard had a material impact on the Company’s Consolidated Balance Sheets, but an immaterial impact on its Consolidated Statements of Operations and Consolidated Statements of Cash Flows. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases, while the accounting for finance leases remained substantially unchanged. In February 2018, the FASB issued ASU 2018-02, “ Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ” (“ASU 2018-02”). The FASB provided ongoing guidance on certain accounting and tax effects of the legislation in the Tax Cuts and Jobs Act (the “2017 Tax Act”), which was enacted in December 2017. ASU 2018-02 allowed a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the 2017 Tax Act. The amendments in ASU 2018-02 also required certain disclosures about stranded tax effects. The Company adopted ASU 2018-02 when it became effective in the first quarter of fiscal year 2019. The Company elected not to reclassify stranded tax effects resulting from the 2017 Tax Act. The adoption of ASU 2018-02 did not have a material impact on the Company’s consolidated financial statements and related disclosures. In June 2018, the FASB issued ASU 2018-07, “ Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting ” (“ASU 2018-07”) which simplified the accounting for nonemployee share-based payment transactions by expanding the scope of ASC Topic 718, Compensation - Stock Compensation , to include share-based payment transactions for acquiring goods and services from nonemployees. Under ASU 2018-07, most of the guidance on stock compensation payments to nonemployees is aligned with the requirements for share-based payments granted to employees. The Company adopted ASU 2018-07 when it became effective in the first quarter of fiscal year 2019. The adoption of ASU 2018-07 did not have a material impact on the Company’s consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-15, “ Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) ” (“ASU 2018-15”) which amended ASC 350-40 to address a customer’s accounting for implementation costs incurred in a cloud computing arrangement (“CCA”) that is a service contract. ASU 2018-15 amended ASC 350 and clarified that a customer should apply ASC 350-40 to determine which implementation costs should be capitalized in a CCA. The ASU did not expand on existing disclosure requirements except to require a description of the nature of hosting arrangements that are service contracts. Entities were permitted to apply either a retrospective or prospective transition approach to adopt the guidance. The Company early adopted the amended guidance on a prospective application basis during the first quarter of fiscal year 2019. The adoption of ASU 2018-15 did not have a material impact on the Company’s consolidated financial statements and related disclosures. In October 2018, the FASB issued ASU 2018-16, “ Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes ” (“ASU 2018-16”). ASU 2018-16 allows for the use of the OIS rate based on the SOFR as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815, Derivatives and Hedging . The Company adopted ASU 2018-16 when it became effective in the first quarter of fiscal year 2019. The adoption of ASU 2018-16 did not have a material impact on the Company’s consolidated financial statements and related disclosures. In July 2019, the FASB issued ASU 2019-07, “ Codification Updates to SEC Sections - Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization and Miscellaneous Updates (SEC Update) ” (“ASU 2019-07”). ASU 2019-07 clarified or improved the disclosure and presentation requirements of a variety of codification topics by aligning them with the SEC’s regulations, thereby eliminating redundancies and making the codification easier to apply. ASU 2019-07 was effective upon issuance and did not have a material impact on the Company’s consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments, ” amended by subsequent ASUs (collectively, “ASU 2016-13”), which changed the way companies evaluate credit losses for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans, and other instruments, entities are required to use a new forward-looking “expected loss” model to evaluate impairment, potentially resulting in earlier recognition of allowances for losses. The new standard also required enhanced disclosures, including the requirement to disclose the information used to track credit quality by year of origination for most financing receivables. The Company adopted ASU 2016-13 when it became effective in the first quarter of fiscal year 2020. The adoption of ASU 2016-13 did not have a material impact on its consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-13, “ Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement ” (“ASU 2018-13”), which changed the fair value measurement disclosure requirements of ASC Topic 820. The ASU added new disclosure requirements and eliminated and modified existing disclosure requirements. Entities are no longer required to disclose the reasons for and amounts of transfers between Level 1 and Level 2 of the fair value hierarchy, but entities are required to disclose the range and weighted-average of significant unobservable inputs used to develop Level 3 fair value measurements. The Company adopted ASU 2018-13 when it became effective in the first quarter of fiscal year 2020. The adoption of ASU 2018-13 did not have a material impact on its consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes” (“ASU 2019-12”). The amendments in ASU 2019-12 simplified the accounting for income taxes by removing certain exceptions to the general principles in ASC Topic 740, Income Taxes . The amendments also improved consistent application of and simplified U.S. GAAP for other areas of ASC Topic 740 by clarifying and amending existing guidance. ASU 2019-12 required adoption on either a prospective or retrospective basis, dependent upon each amendment within this update. The Company adopted ASU 2019-12 when it became effective in the first quarter of fiscal year 2021. The adoption of ASU 2019-12 did not have a material impact on its consolidated financial statements and related disclosures. Accounting Pronouncements Issued But Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ” (“ASU 2020-04”). The amendments provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In January 2021, the FASB issued ASU 2021-01, “ Reference Rate Reform (Topic 848): Scope” (“ASU 2021-01”) to amend the scope of the guidance in ASU 2020-04 on the facilitation of the effects of reference rate reform on financial reporting. Specifically, the amendments in ASU 2021-01 clarify that “certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting can apply to derivatives that are affected by the discounting transition”. The amendments apply only to contracts and hedging relationships that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. The expedients are applicable to contract modifications made and hedging relationships entered into on or before December 31, 2022. The guidance may be elected over time as reference rate reform activities occur. The Company has elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contact Liabilities from Contracts with Customers” (“ASU 2021-08”). The guidance requires an acquirer in a business combination to recognize and measure contract assets and liabilities in accordance with ASC 2014-09, Revenue from Contracts with Customers (Topic 606) rather than at fair value. The new standard will be effective on a prospective basis for fiscal years beginning after December 15, 2022 and interim periods therein, with early adoption permitted. The Company is currently evaluating the amended guidance and the impact on its consolidated financial statements and related disclosures. |
Nature of Business and Signif_3
Nature of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Activity in the Allowance for Doubtful Accounts | Activity in the allowance for doubtful accounts for the periods was as follows (in millions): For the year For the year For the year Beginning balance $ 9.1 $ 8.3 $ 5.9 Provision for allowance 4.3 3.0 5.9 Recoveries (write-offs), net 0.1 (2.2) (3.5) Ending balance $ 13.5 $ 9.1 $ 8.3 |
Summary of Property, Plant and Equipment, Useful Life | Asset Class Estimated Useful Life Buildings and improvements 20 years Branch equipment 2 to 12 years Furniture and fixtures 2 to 12 years Auto and truck 2 to 6 years Tooling 7 years Leasehold improvements Shorter of the estimated useful life or the term of the lease, considering renewal options expected to be exercised. Property and equipment consisted of the following (in millions): January 2, 2022 January 3, 2021 Land $ 12.2 $ 12.2 Buildings and leasehold improvements: Buildings 7.8 7.8 Leasehold improvements 39.5 31.0 Branch equipment 81.0 58.6 Office furniture and fixtures and vehicles: Office furniture and fixtures 25.5 22.4 Vehicles 33.6 32.0 Finance lease right-of-use assets 77.5 64.5 Tooling 0.1 0.1 Construction in process 7.3 5.3 Total Property and equipment, gross 284.5 233.9 Less: accumulated depreciation and amortization 133.0 103.9 Total Property and equipment, net $ 151.5 $ 130.0 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Net Sales Disaggregated By Product Category | The following table presents Net sales disaggregated by product category (in millions): For the year January 4, 2021 to January 2, 2022 For the year December 30, 2019 to January 3, 2021 For the year December 31, 2018 to December 29, 2019 Landscaping products (a) $ 2,584.8 $ 1,980.9 $ 1,670.7 Agronomic and other products (b) 890.9 723.6 686.8 $ 3,475.7 $ 2,704.5 $ 2,357.5 ______________ (a) Landscaping products include irrigation supplies, hardscapes, landscape accessories, nursery goods, and outdoor lighting. (b) Agronomic and other products include fertilizer, control products, ice melt, equipment, and other products. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Asset Class Estimated Useful Life Buildings and improvements 20 years Branch equipment 2 to 12 years Furniture and fixtures 2 to 12 years Auto and truck 2 to 6 years Tooling 7 years Leasehold improvements Shorter of the estimated useful life or the term of the lease, considering renewal options expected to be exercised. Property and equipment consisted of the following (in millions): January 2, 2022 January 3, 2021 Land $ 12.2 $ 12.2 Buildings and leasehold improvements: Buildings 7.8 7.8 Leasehold improvements 39.5 31.0 Branch equipment 81.0 58.6 Office furniture and fixtures and vehicles: Office furniture and fixtures 25.5 22.4 Vehicles 33.6 32.0 Finance lease right-of-use assets 77.5 64.5 Tooling 0.1 0.1 Construction in process 7.3 5.3 Total Property and equipment, gross 284.5 233.9 Less: accumulated depreciation and amortization 133.0 103.9 Total Property and equipment, net $ 151.5 $ 130.0 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the years ended January 2, 2022 and January 3, 2021 are as follows (in millions): For the year For the year Beginning balance $ 250.6 $ 181.3 Goodwill acquired during the year 58.9 70.8 Goodwill adjusted during the year 1.6 (1.5) Ending balance $ 311.1 $ 250.6 |
Summary of Components of Intangible Assets | The following table summarizes the components of intangible assets (in millions, except weighted average remaining useful life): January 2, 2022 January 3, 2021 Weighted Average Remaining Useful Life Amount Accumulated Net Amount Accumulated Net Customer relationships 17.0 years $ 394.8 $ 197.3 $ 197.5 $ 340.5 $ 156.9 $ 183.6 Trademarks and other 3.7 years 34.1 17.7 16.4 25.8 13.1 12.7 Total intangibles $ 428.9 $ 215.0 $ 213.9 $ 366.3 $ 170.0 $ 196.3 |
Schedule of Future Amortization Expense | Total future amortization estimated as of January 2, 2022, is as follows (in millions): Fiscal year ending: 2022 $ 42.6 2023 34.8 2024 28.0 2025 22.5 2026 17.9 Thereafter 68.1 Total future amortization $ 213.9 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Leases [Abstract] | |
Schedule of Lease Costs | The components of lease expense were as follows (in millions): Lease cost Classification For the year January 4, 2021 to January 2, 2022 For the year December 30, 2019 to January 3, 2021 Finance lease cost Amortization of right-of-use assets Selling, general and administrative expenses $ 10.8 $ 9.1 Interest on lease liabilities Interest and other non-operating expenses, net 1.5 1.3 Operating lease cost Cost of goods sold 3.7 3.1 Operating lease cost Selling, general and administrative expenses 70.4 64.8 Short-term lease cost Selling, general and administrative expenses 1.5 1.9 Variable lease cost Selling, general and administrative expenses 0.9 0.6 Sublease income Selling, general and administrative expenses (1.1) (1.0) Total lease cost $ 87.7 $ 79.8 Supplemental cash flow information related to leases was as follows (in millions): Other information For the year January 4, 2021 to January 2, 2022 For the year December 30, 2019 to January 3, 2021 Cash paid for amounts included in the measurements of lease liabilities: Operating cash flows from finance leases $ 1.5 $ 1.3 Operating cash flows from operating leases $ 72.5 $ 66.0 Financing cash flows from finance leases $ 10.4 $ 8.5 Right-of-use assets obtained in exchange for new lease liabilities: Finance leases $ 14.2 $ 27.4 Operating leases $ 94.9 $ 79.9 Average lease terms and discount rates were as follows: Lease Term and Discount Rate January 2, 2022 Weighted-average remaining lease term Finance leases 4.4 years Operating leases 6.9 years Weighted-average discount rate Finance leases 3.6 % Operating leases 4.8 % |
Schedule of Future Lease Payments for Operating Leases | The aggregate future lease payments for operating and finance leases as of January 2, 2022 were as follows (in millions): Maturity of Lease Liabilities Operating Leases Finance Leases Fiscal year: 2022 $ 68.8 $ 12.4 2023 64.7 11.8 2024 53.8 10.6 2025 42.3 7.7 2026 30.8 4.9 Thereafter 106.1 1.5 Total lease payments 366.5 48.9 Less: interest 60.2 3.5 Present value of lease liabilities $ 306.3 $ 45.4 |
Schedule of Future Lease Payments for Finance Leases | The aggregate future lease payments for operating and finance leases as of January 2, 2022 were as follows (in millions): Maturity of Lease Liabilities Operating Leases Finance Leases Fiscal year: 2022 $ 68.8 $ 12.4 2023 64.7 11.8 2024 53.8 10.6 2025 42.3 7.7 2026 30.8 4.9 Thereafter 106.1 1.5 Total lease payments 366.5 48.9 Less: interest 60.2 3.5 Present value of lease liabilities $ 306.3 $ 45.4 |
Employee Benefit and Stock In_2
Employee Benefit and Stock Incentive Plans (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Stock Option Valuation Assumptions | The estimated grant-date fair value of stock options is calculated using the Black-Scholes option-pricing model, based on the following weighted-average assumptions: January 2, 2022 January 3, 2021 December 29, 2019 Risk-free interest rate 0.70% 1.50% 2.52% Expected dividends — — — Expected volatility 28% 22% 25% Expected term 6.25 years 6.25 years 6.25 years |
Summary of Stock Option Activity | The following table summarizes the information about stock options as of and for the years ended January 2, 2022 and January 3, 2021: Number of Weighted Weighted Average Aggregate Outstanding as of December 29, 2019 1,998.8 $ 26.67 5.98 years $ 127.5 Granted 139.9 102.38 Exercised (528.0) 18.55 Expired or forfeited (15.4) 54.63 Outstanding as of January 3, 2021 1,595.3 $ 35.73 5.60 years $ 196.0 Granted 75.0 167.42 Exercised (449.0) 20.69 Expired or forfeited (28.0) 102.99 Outstanding as of January 2, 2022 1,193.3 $ 48.09 5.19 years $ 231.7 Exercisable as of January 2, 2022 853.9 $ 30.15 4.23 years $ 181.1 Unvested and expected to vest after January 2, 2022 339.4 $ 93.21 7.60 years $ 50.6 |
Share-based Compensation, Deferred Stock Units Award Outstanding Activity | The following table summarizes other stock-based compensation award activities for the year ended January 2, 2022 (in thousands): RSUs DSUs PSUs Outstanding as of January 3, 2021 174.1 41.0 44.2 Granted 84.7 4.5 19.9 Vested/Settled (60.5) — — Expired or forfeited (11.7) — (3.6) Outstanding as of January 2, 2022 186.6 45.5 60.5 The weighted average grant date fair value of awards granted during the year ended January 2, 2022 was as follows: Weighted Average Stock options $ 48.51 RSUs $ 171.20 DSUs $ 174.42 PSUs $ 166.15 |
Share-based Compensation, Performance Shares Award Outstanding Activity | The following table summarizes other stock-based compensation award activities for the year ended January 2, 2022 (in thousands): RSUs DSUs PSUs Outstanding as of January 3, 2021 174.1 41.0 44.2 Granted 84.7 4.5 19.9 Vested/Settled (60.5) — — Expired or forfeited (11.7) — (3.6) Outstanding as of January 2, 2022 186.6 45.5 60.5 The weighted average grant date fair value of awards granted during the year ended January 2, 2022 was as follows: Weighted Average Stock options $ 48.51 RSUs $ 171.20 DSUs $ 174.42 PSUs $ 166.15 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | The following table summarizes other stock-based compensation award activities for the year ended January 2, 2022 (in thousands): RSUs DSUs PSUs Outstanding as of January 3, 2021 174.1 41.0 44.2 Granted 84.7 4.5 19.9 Vested/Settled (60.5) — — Expired or forfeited (11.7) — (3.6) Outstanding as of January 2, 2022 186.6 45.5 60.5 The weighted average grant date fair value of awards granted during the year ended January 2, 2022 was as follows: Weighted Average Stock options $ 48.51 RSUs $ 171.20 DSUs $ 174.42 PSUs $ 166.15 |
Summary of Stock-based Compensation Expense Recognized | A summary of stock-based compensation expenses recognized during the periods was as follows (in millions): For the year For the year Stock options $ 4.0 $ 4.7 RSUs 6.4 4.1 DSUs 0.6 0.8 PSUs 3.3 1.0 Total stock-based compensation $ 14.3 $ 10.6 |
Summary of Unrecognized Stock-based Compensation Expense | A summary of unrecognized stock-based compensation expense as of January 2, 2022 was as follows: Unrecognized Compensation Weighted Average Stock options $ 5.5 2.3 years RSUs $ 16.4 2.8 years DSUs $ 0.2 0.8 years PSUs $ 2.6 1.8 years |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt was as follows (in millions): January 2, 2022 January 3, 2021 ABL facility $ — $ — Term loans 255.4 269.0 Hybrid debt instruments 4.8 — Total gross long-term debt 260.2 269.0 Less: unamortized debt issuance costs and discounts on debt (5.0) (5.5) Total debt $ 255.2 $ 263.5 Less: current portion (4.0) (2.8) Total long-term debt $ 251.2 $ 260.7 |
Schedule of Maturities of Long-term Debt Outstanding | Maturities of long-term debt outstanding, in principal amounts at January 2, 2022 are summarized below (in millions): Fiscal year: 2022 $ 4.0 2023 4.1 2024 3.4 2025 3.0 2026 3.2 Thereafter 242.5 Total $ 260.2 |
Schedule of Details Related to Interest Rate Contracts | The following table provides additional details related to the swap contracts designated as hedging instruments as of January 2, 2022: Derivatives designated as hedging instruments Inception Date Effective Date Maturity Date Notional Amount Fixed Interest Rate Type of Hedge Forward-starting interest rate swap 3 December 17, 2018 July 14, 2020 January 14, 2024 $ 34.0 2.93450 % Cash flow Interest rate swap 7 March 23, 2021 March 23, 2021 March 23, 2025 $ 50.0 0.99500 % Cash flow Interest rate swap 8 March 23, 2021 March 23, 2021 March 23, 2025 $ 90.0 0.98600 % Cash flow Interest rate swap 9 March 23, 2021 March 23, 2021 March 23, 2025 $ 70.0 0.99784 % Cash flow The following table provides additional details related to the swap contracts not designated as hedging instruments, which were terminated upon maturity on June 11, 2021: Derivatives not designated as hedging instruments Inception Date Effective Date Maturity Date Notional Amount Fixed Interest Rate Forward-starting interest rate swap 1 June 30, 2017 March 11, 2019 June 11, 2021 $ 58.0 2.13450 % Forward-starting interest rate swap 2 June 30, 2017 March 11, 2019 June 11, 2021 $ 116.0 2.15100 % The following tables summarize the fair value of the derivative instruments and the respective lines in which they were recorded in the Consolidated Balance Sheets as of January 2, 2022 and January 3, 2021 (in millions): Derivative Assets January 2, 2022 January 3, 2021 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest rate contracts Other assets $ 2.5 Other assets $ — Total derivative assets $ 2.5 $ — Derivative Liabilities January 2, 2022 January 3, 2021 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest rate contracts Accrued liabilities $ 1.2 Accrued liabilities $ 2.2 Other long-term liabilities 0.6 Other long-term liabilities 2.6 Derivatives not designated as hedging instruments Interest rate contracts Accrued liabilities $ — Accrued liabilities $ 1.7 Other long-term liabilities — Other long-term liabilities 2.6 Total derivative liabilities $ 1.8 $ 9.1 |
Schedule of Pre-tax Amounts of Derivatives Designated as Cash Flow Hedges in AOCI | The table below details pre-tax amounts in AOCI and gain (loss) reclassified into income for derivatives designated as cash flow hedges for the years ended January 2, 2022 and January 3, 2021 (in millions): January 2, 2022 January 3, 2021 Derivatives in Cash Flow Hedging Relationships Gain (Loss) Recorded in OCI Classification of Gain (Loss) Reclassified from AOCI into Income Gain (Loss) Reclassified from AOCI into Income Gain (Loss) Recorded in OCI Classification of Gain (Loss) Reclassified from AOCI into Income Gain (Loss) Reclassified from AOCI into Income Interest rate contracts $ 1.0 Interest and other non-operating expenses, net $ (2.2) $ (0.6) Interest and other non-operating expenses, net $ (4.1) |
Schedule of Derivatives Not Designated as Hedging Instruments | The table below details gain (loss) recorded in income and reclassified from AOCI into income for derivatives not designated as hedging instruments for the years ended January 2, 2022 and January 3, 2021 (in millions): Gain (Loss) Reclassified from AOCI into Income Gain (Loss) Recognized in Income Derivatives not designated as hedging instruments Location of Gain (Loss) January 02, 2022 January 03, 2021 January 02, 2022 January 03, 2021 Interest rate contracts Interest and other non-operating expenses, net $ (2.4) $ (1.1) $ (0.1) $ (0.6) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Net Income Before Taxes | Components of Income before taxes were as follows (in millions): For the year For the year For the year U.S. $ 286.3 $ 144.5 $ 87.5 Foreign 8.2 4.3 4.0 Total $ 294.5 $ 148.8 $ 91.5 |
Schedule of Components of Income Tax Expense | Components of Income tax expense were as follows (in millions): For the year For the year For the year Current income tax expense U.S. federal $ 44.1 $ 19.2 $ 11.7 U.S. state and local 12.4 7.5 4.4 Foreign 2.7 0.4 1.1 Total current 59.2 27.1 17.2 Deferred income tax (benefit) expense U.S. federal (1.8) 0.8 (2.0) U.S. state and local (0.7) (0.8) (1.3) Foreign (0.6) 0.4 (0.1) Total deferred (3.1) 0.4 (3.4) Total $ 56.1 $ 27.5 $ 13.8 |
Schedule of Reconciliation of Income Tax Expense (Benefit) | The following table provides a reconciliation of Income tax expense at the statutory U.S. federal tax rate to actual Income tax expense for the periods presented (in millions): For the year For the year For the year U.S. federal statutory expense $ 61.9 $ 31.2 $ 19.2 State and local income taxes, net (a) 9.1 5.1 2.2 Excess tax benefits (16.5) (8.9) (7.7) Other, net 1.6 0.1 0.1 Income tax expense $ 56.1 $ 27.5 $ 13.8 ______________ (a) Includes excess tax benefits pursuant to ASU 2016-09 of $(3.7) million, $(2.0) million, and $(1.9) million for the years ended January 2, 2022, January 3, 2021, and December 29, 2019, respectively. |
Schedule of Significant Components of Deferred Income Taxes | The significant components of deferred income taxes are as follows (in millions): January 2, 2022 January 3, 2021 Deferred tax assets: Net operating losses $ 4.3 $ 4.8 Allowance for uncollectible accounts 6.4 5.5 Inventory 3.4 2.7 Intangible assets 1.7 — Accrued compensation 3.3 2.4 Stock compensation 6.0 4.7 Deferred employer payroll taxes 1.5 3.1 Environmental reserve 0.6 0.6 Deferred transaction costs 2.4 2.0 Operating lease liabilities 79.0 68.4 Interest rate swaps — 2.3 Other 4.2 1.7 Total gross deferred tax assets 112.8 98.2 Valuation allowance (4.2) (4.5) Total net deferred tax assets 108.6 93.7 Deferred tax liabilities: Fixed assets and land (23.7) (17.8) Intangible assets — (4.9) Goodwill (9.1) (6.5) Deferred financing costs (0.2) (0.3) Operating lease right-of-use assets (75.7) (65.5) Interest rate swaps (0.2) — Other (1.6) (1.7) Total deferred tax liabilities (110.5) (96.7) Net deferred tax liabilities $ (1.9) $ (3.0) Deferred taxes are recorded as follows in the Consolidated Balance Sheets (in millions): January 2, 2022 January 3, 2021 U.S. state and local net deferred tax assets $ 2.8 $ 2.4 Foreign net deferred tax assets 0.4 — U.S. state and local and foreign net deferred tax assets 3.2 2.4 U.S. federal net deferred tax liabilities (5.1) (5.2) Foreign net deferred tax liabilities — (0.2) U.S. federal and foreign net deferred tax liabilities (5.1) (5.4) Net deferred tax liabilities $ (1.9) $ (3.0) |
Schedule of Activity within the tax valuation allowance | Activity within the tax valuation allowance for the periods was as follows (in millions): For the year For the year For the year Beginning balance $ 4.5 $ 4.6 $ 4.8 Decrease in valuation allowance (0.3) (0.1) (0.2) Ending balance $ 4.2 $ 4.5 $ 4.6 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Jan. 02, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of the weighted average number of diluted common shares outstanding for the periods ended January 2, 2022, January 3, 2021, and December 29, 2019: For the year For the year For the year Shares used in the computation of basic earnings per share 44,578,649 42,858,691 41,218,843 Effect of dilutive securities: Stock options 1,066,589 1,153,367 1,471,361 RSUs and PSUs 156,074 73,321 48,416 DSUs 4,061 8,122 11,728 Shares used in the computation of diluted earnings per share 45,805,373 44,093,501 42,750,348 |
Nature of Business and Signif_4
Nature of Business and Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||
Jan. 02, 2022USD ($)storerenewal_option | Jan. 03, 2021USD ($) | Dec. 29, 2019USD ($) | |
Concentration Risk [Line Items] | |||
Number of stores (over) | store | 590 | ||
Deferred payroll taxes | $ 12,200,000 | ||
Payment of deferred payroll taxes | $ 6,100,000 | ||
Reserve for obsolete and excess inventory | 11,800,000 | 7,900,000 | |
Goodwill impairment | 0 | 0 | $ 0 |
Impairment of long-lived assets | 0 | 0 | 0 |
Warranty reserve | $ 100,000 | 100,000 | |
Number of options to renew | renewal_option | 1 | ||
Advertising costs | $ 10,400,000 | $ 4,700,000 | $ 3,300,000 |
Stock options | |||
Concentration Risk [Line Items] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Minimum | |||
Concentration Risk [Line Items] | |||
Extended lease term | 1 year | ||
Maximum | |||
Concentration Risk [Line Items] | |||
Extended lease term | 5 years | ||
Accrued Compensation | |||
Concentration Risk [Line Items] | |||
Deferred payroll taxes | $ 6,100,000 | ||
Geographic Concentration Risk | Sales | CANADA | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage (less than) | 4.00% | ||
Geographic Concentration Risk | Total assets | CANADA | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage (less than) | 5.00% |
Nature of Business and Signif_5
Nature of Business and Significant Accounting Policies - Stock Offering (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 03, 2020 | Jan. 02, 2022 | Jan. 03, 2021 |
Subsidiary, Sale of Stock [Line Items] | |||
Shares sold in offering (in shares) | 2,150,000 | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Aggregate proceeds from stock offering | $ 262.3 | ||
Payments of stock issuance costs | $ 0.6 | ||
Over-Allotment Option | |||
Subsidiary, Sale of Stock [Line Items] | |||
Shares sold in offering (in shares) | 322,500 | ||
Exercisable period | 30 days |
Nature of Business and Signif_6
Nature of Business and Significant Accounting Policies - Basis of Financial Statement Presentation (Details) - USD ($) $ in Millions | Dec. 23, 2013 | Jan. 02, 2022 |
CD&R | ||
Business Acquisition [Line Items] | ||
Ownership interest acquired | 100.00% | |
Cash consideration | $ 314 | |
CD&R | Redeemable Convertible Preferred Stock | ||
Business Acquisition [Line Items] | ||
Equity interest issued, percentage of outstanding stock | 60.00% | |
Equity interest issued, value | $ 174 | |
CD&R | Common stock | ||
Business Acquisition [Line Items] | ||
Equity interest issued, percentage of outstanding stock | 40.00% | |
SiteOne Landscape Supply Holding, LLC | ||
Business Acquisition [Line Items] | ||
Percentage of ownership | 100.00% |
Nature of Business and Signif_7
Nature of Business and Significant Accounting Policies - Activity in the Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 9.1 | $ 8.3 | $ 5.9 |
Provision for allowance | 4.3 | 3 | 5.9 |
Recoveries (write-offs), net | 0.1 | (2.2) | (3.5) |
Ending balance | $ 13.5 | $ 9.1 | $ 8.3 |
Nature of Business and Signif_8
Nature of Business and Significant Accounting Policies - Property, Plant and Equipment, Net (Details) | 12 Months Ended |
Jan. 02, 2022 | |
Buildings and improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 20 years |
Branch equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 2 years |
Branch equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 12 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 2 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 12 years |
Vehicles | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 2 years |
Vehicles | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 6 years |
Tooling | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 7 years |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 3,475.7 | $ 2,704.5 | $ 2,357.5 |
Landscaping products | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 2,584.8 | 1,980.9 | 1,670.7 |
Agronomic and other products | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 890.9 | $ 723.6 | $ 686.8 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Remaining Performance Obligations (Details) $ in Millions | Jan. 02, 2022USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 8.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-03 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Contract liabilities | $ 8.8 | $ 5.7 |
Revenue recognized | $ 8.2 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) $ in Millions | 12 Months Ended | ||||||||||||||||||||
Jan. 02, 2022USD ($)store | Jan. 03, 2021USD ($) | Dec. 29, 2019USD ($)location | Dec. 31, 2021location | Nov. 30, 2021location | Aug. 31, 2021location | May 31, 2021location | Apr. 30, 2021location | Feb. 28, 2021location | Dec. 31, 2020location | Oct. 31, 2020locationprovince | Aug. 31, 2020location | Mar. 31, 2020location | Jan. 31, 2020location | Sep. 30, 2019location | Aug. 31, 2019location | Jul. 31, 2019location | May 31, 2019location | Apr. 30, 2019location | Feb. 28, 2019location | Jan. 31, 2019location | |
Business Acquisition [Line Items] | |||||||||||||||||||||
Goodwill acquired | $ | $ 58.9 | $ 70.8 | |||||||||||||||||||
Number of locations | store | 590 | ||||||||||||||||||||
2021 Acquisitions | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Aggregate purchase price | $ | $ 147.2 | ||||||||||||||||||||
Deferred contingent consideration | $ | 4.8 | ||||||||||||||||||||
Aggregate assets acquired | $ | 108.6 | ||||||||||||||||||||
Aggregate liabilities assumed | $ | 15.5 | ||||||||||||||||||||
Goodwill acquired | $ | $ 58.9 | ||||||||||||||||||||
2020 Acquisitions | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Aggregate purchase price | $ | 160.6 | ||||||||||||||||||||
Deferred contingent consideration | $ | 12.4 | ||||||||||||||||||||
Aggregate assets acquired | $ | 129.1 | ||||||||||||||||||||
Aggregate liabilities assumed | $ | 26.9 | ||||||||||||||||||||
Goodwill acquired | $ | $ 70.8 | ||||||||||||||||||||
2019 Acquisitions | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Aggregate purchase price | $ | $ 70.7 | ||||||||||||||||||||
Deferred contingent consideration | $ | 6.4 | ||||||||||||||||||||
Aggregate assets acquired | $ | 69.5 | ||||||||||||||||||||
Aggregate liabilities assumed | $ | 22.1 | ||||||||||||||||||||
Goodwill acquired | $ | $ 29.7 | ||||||||||||||||||||
Seffner | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Number of locations | 1 | ||||||||||||||||||||
Semco Distributing | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Number of locations | 4 | ||||||||||||||||||||
Green Brothers | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Number of locations | 4 | ||||||||||||||||||||
Rock and Block | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Number of locations | 2 | ||||||||||||||||||||
Melrose | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Number of locations | 6 | ||||||||||||||||||||
Timberwall | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Number of locations | 1 | ||||||||||||||||||||
AZ Stone and Solstice | ARIZONA | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Number of locations | 7 | ||||||||||||||||||||
AZ Stone and Solstice | Las Vegas | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Number of locations | 2 | ||||||||||||||||||||
Lucky Landscape Supply | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Number of locations | 1 | ||||||||||||||||||||
Stone Center of Virginia | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Number of locations | 2 | ||||||||||||||||||||
Dirt and Rock | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Number of locations | 1 | ||||||||||||||||||||
Alpine | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Number of locations | 1 | ||||||||||||||||||||
Hedberg | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Number of locations | 2 | ||||||||||||||||||||
BURNCO | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Number of locations | 12 | ||||||||||||||||||||
Number of provinces | province | 3 | ||||||||||||||||||||
Modern Builders | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Number of locations | 2 | ||||||||||||||||||||
Alliance Stone | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Number of locations | 1 | ||||||||||||||||||||
Big Rock | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Number of locations | 1 | ||||||||||||||||||||
Garden Dept | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Number of locations | 3 | ||||||||||||||||||||
Empire | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Number of locations | 3 | ||||||||||||||||||||
Wittkopf | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Number of locations | 2 | ||||||||||||||||||||
Daniel Stone & Landscaping Supplies, Inc | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Number of locations | 1 | ||||||||||||||||||||
Dirt Doctors, Inc | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Number of locations | 3 | ||||||||||||||||||||
Design Outdoor | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Number of locations | 1 | ||||||||||||||||||||
Trendset | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Number of locations | 1 | ||||||||||||||||||||
Voss | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Number of locations | 5 | ||||||||||||||||||||
Stone and Soil Depot, Inc. | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Number of locations | 3 | ||||||||||||||||||||
Fisher's | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Number of locations | 2 | ||||||||||||||||||||
Landscape Depot | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Number of locations | 3 | ||||||||||||||||||||
All Pro Horticulture, Inc. | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Number of locations | 1 | ||||||||||||||||||||
Cutting Edge | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Number of locations | 1 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Millions | Jan. 02, 2022 | Jan. 03, 2021 |
Long-Lived Tangible Asset [Line Items] | ||
Finance lease right-of-use assets | $ 77.5 | $ 64.5 |
Total Property and equipment, gross | 284.5 | 233.9 |
Less: accumulated depreciation and amortization | 133 | 103.9 |
Total Property and equipment, net | 151.5 | 130 |
Land | ||
Long-Lived Tangible Asset [Line Items] | ||
Property, plant and equipment, gross | 12.2 | 12.2 |
Buildings | ||
Long-Lived Tangible Asset [Line Items] | ||
Property, plant and equipment, gross | 7.8 | 7.8 |
Leasehold improvements | ||
Long-Lived Tangible Asset [Line Items] | ||
Property, plant and equipment, gross | 39.5 | 31 |
Branch equipment | ||
Long-Lived Tangible Asset [Line Items] | ||
Property, plant and equipment, gross | 81 | 58.6 |
Office furniture and fixtures | ||
Long-Lived Tangible Asset [Line Items] | ||
Property, plant and equipment, gross | 25.5 | 22.4 |
Vehicles | ||
Long-Lived Tangible Asset [Line Items] | ||
Property, plant and equipment, gross | 33.6 | 32 |
Tooling | ||
Long-Lived Tangible Asset [Line Items] | ||
Property, plant and equipment, gross | 0.1 | 0.1 |
Construction in process | ||
Long-Lived Tangible Asset [Line Items] | ||
Property, plant and equipment, gross | $ 7.3 | $ 5.3 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Amortization of finance lease right-of-use assets and depreciation | $ 36.2 | $ 29.4 | $ 25.1 |
Capitalized software costs | 12.8 | 12.9 | |
Accumulated amortization of capitalized software | 11.1 | 9.4 | |
Amortization of software costs | $ 1.8 | $ 2.1 | $ 2.1 |
Capitalized software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life (in years) | 3 years |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 250.6 | $ 181.3 |
Goodwill acquired during the year | 58.9 | 70.8 |
Goodwill adjusted during the year | 1.6 | (1.5) |
Ending balance | $ 311.1 | $ 250.6 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Summary of the Components of Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amount | $ 428.9 | $ 366.3 |
Accumulated Amortization | 215 | 170 |
Net | $ 213.9 | $ 196.3 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Life | 17 years | 17 years |
Amount | $ 394.8 | $ 340.5 |
Accumulated Amortization | 197.3 | 156.9 |
Net | $ 197.5 | $ 183.6 |
Trademarks and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Life | 3 years 8 months 12 days | 3 years 8 months 12 days |
Amount | $ 34.1 | $ 25.8 |
Accumulated Amortization | 17.7 | 13.1 |
Net | $ 16.4 | $ 12.7 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill impairment | $ 0 | $ 0 | $ 0 |
Intangible assets acquired | 62,600,000 | 81,400,000 | |
Amortization of intangible assets | 45,000,000 | 35,700,000 | $ 32,300,000 |
Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | 54,300,000 | 72,600,000 | |
Change in intangible assets, additions | 54,200,000 | 70,800,000 | |
Foreign currency translation adjustments | $ 100,000 | ||
Adjustments to purchase price allocations | 1,800,000 | ||
Weighted average useful life | 20 years | ||
Trademarks and other | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 8,300,000 | 8,800,000 | |
Change in intangible assets, additions | 8,300,000 | 8,600,000 | |
Foreign currency translation adjustments | $ 0 | ||
Adjustments to purchase price allocations | $ 200,000 | ||
Weighted average useful life | 5 years |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, Net - Future Amortization Expense (Details) - USD ($) $ in Millions | Jan. 02, 2022 | Jan. 03, 2021 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2022 | $ 42.6 | |
2023 | 34.8 | |
2024 | 28 | |
2025 | 22.5 | |
2026 | 17.9 | |
Thereafter | 68.1 | |
Net | $ 213.9 | $ 196.3 |
Leases - Components of Leases E
Leases - Components of Leases Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Finance lease cost | ||
Amortization of right-of-use assets | $ 10.8 | $ 9.1 |
Interest on lease liabilities | 1.5 | 1.3 |
Short-term lease cost | 1.5 | 1.9 |
Variable lease cost | 0.9 | 0.6 |
Sublease income | (1.1) | (1) |
Total lease cost | 87.7 | 79.8 |
Cost of goods sold | ||
Finance lease cost | ||
Operating lease cost | 3.7 | 3.1 |
Selling, general and administrative expenses | ||
Finance lease cost | ||
Operating lease cost | $ 70.4 | $ 64.8 |
Leases- Supplemental Cash Flow
Leases- Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Cash paid for amounts included in the measurements of lease liabilities: | |||
Operating cash flows from finance leases | $ 1.5 | $ 1.3 | |
Operating cash flows from operating leases | 72.5 | 66 | |
Financing cash flows from finance leases | 10.4 | 8.5 | $ 6.5 |
Right-of-use assets obtained in exchange for new lease liabilities: | |||
Finance leases | 14.2 | 27.4 | |
Operating leases | $ 94.9 | $ 79.9 |
Leases- Future Lease Payments f
Leases- Future Lease Payments for Operating and Finance Leases (Details) $ in Millions | Jan. 02, 2022USD ($) |
Operating Leases | |
2022 | $ 68.8 |
2023 | 64.7 |
2024 | 53.8 |
2025 | 42.3 |
2026 | 30.8 |
Thereafter | 106.1 |
Total lease payments | 366.5 |
Less: interest | 60.2 |
Present value of lease liabilities | 306.3 |
Finance Leases | |
2022 | 12.4 |
2023 | 11.8 |
2024 | 10.6 |
2025 | 7.7 |
2026 | 4.9 |
Thereafter | 1.5 |
Total lease payments | 48.9 |
Less: interest | 3.5 |
Present value of lease liabilities | $ 45.4 |
Leases- Lease Term and Discount
Leases- Lease Term and Discount Rate (Details) | Jan. 02, 2022 |
Weighted-average remaining lease term | |
Finance leases | 4 years 4 months 24 days |
Operating leases | 6 years 10 months 24 days |
Weighted-average discount rate | |
Finance leases | 3.60% |
Operating leases | 4.80% |
Employee Benefit and Stock In_3
Employee Benefit and Stock Incentive Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | May 13, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Contributions to the defined contribution benefit plan made by Company | $ 11.4 | $ 9.6 | $ 8.5 | |
Number of shares authorized | 2,155,280 | |||
Shares reserved for issuance (in shares) | 2,029,381 | |||
Twenty-Twenty Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares reserved for issuance (in shares) | 1,600,000 | |||
Twenty Sixteen Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 555,280 | |||
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Expiration period | 10 years | |||
Stock options | 25% vested in year 1 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 25.00% | |||
Stock options | 25% vested in year 2 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 25.00% | |||
Stock options | 25% vested in year 3 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 25.00% | |||
Stock options | 25% vested in year 4 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 25.00% | |||
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Expiration period | 10 years | |||
RSUs | 25% vested in year 1 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 25.00% | |||
RSUs | 25% vested in year 2 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 25.00% | |||
RSUs | 25% vested in year 3 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 25.00% | |||
RSUs | 25% vested in year 4 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 25.00% | |||
PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years |
Employee Benefit and Stock In_4
Employee Benefit and Stock Incentive Plans - Assumptions (Details) - Stock options | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 0.70% | 1.50% | 2.52% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Expected volatility | 28.00% | 22.00% | 25.00% |
Expected term | 6 years 3 months | 6 years 3 months | 6 years 3 months |
Employee Benefit and Stock In_5
Employee Benefit and Stock Incentive Plans - Stock Option Activities (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Number of Shares (in thousands) | |||
Outstanding, beginning balance (in shares) | 1,595,300 | 1,998,800 | |
Granted (in shares) | 75,000 | 139,900 | |
Exercised (in shares) | (449,000) | (528,000) | |
Expired or forfeited (in shares) | (28,000) | (15,400) | |
Outstanding, ending balance (in shares) | 1,193,300 | 1,595,300 | 1,998,800 |
Exercisable (in shares) | 853,900 | ||
Unvested and expected to vest (in shares) | 339,400 | ||
Weighted Average Exercise Price | |||
Outstanding, beginning balance (in dollars per share) | $ 35.73 | $ 26.67 | |
Granted (in dollars per share) | 167.42 | 102.38 | |
Exercised (in dollars per share) | 20.69 | 18.55 | |
Expired or forfeited (in dollars per share) | 102.99 | 54.63 | |
Outstanding, ending balance (in dollars per share) | 48.09 | $ 35.73 | $ 26.67 |
Exercisable (in dollars per share) | 30.15 | ||
Unvested and expected to vest (in dollars per share) | $ 93.21 | ||
Weighted Average Remaining Contractual Term | |||
Outstanding, weighted average remaining contractual term (years) | 5 years 2 months 8 days | 5 years 7 months 6 days | 5 years 11 months 23 days |
Exercisable, weighted average remaining contractual term (years) | 4 years 2 months 23 days | ||
Unvested and expected to vest, weighted average remaining contractual term (years) | 7 years 7 months 6 days | ||
Aggregate Intrinsic Value (in millions) | |||
Outstanding, aggregate intrinsic value | $ 231.7 | $ 196 | $ 127.5 |
Exercisable, aggregate intrinsic value | 181.1 | ||
Unvested and expected to vest, aggregate intrinsic value | $ 50.6 |
Employee Benefit and Stock In_6
Employee Benefit and Stock Incentive Plans - Summary of Stock-based Compensation Activities (Details) | 12 Months Ended |
Jan. 02, 2022shares | |
RSUs | |
Number of Shares (in thousands) | |
Outstanding, beginning balance (in shares) | 174,100 |
Granted (in shares) | 84,700 |
Exercised/Vested/Settled (in shares) | (60,500) |
Expired or forfeited (in shares) | (11,700) |
Outstanding, ending balance (in shares) | 186,600 |
DSUs | |
Number of Shares (in thousands) | |
Outstanding, beginning balance (in shares) | 41,000 |
Granted (in shares) | 4,500 |
Exercised/Vested/Settled (in shares) | 0 |
Expired or forfeited (in shares) | 0 |
Outstanding, ending balance (in shares) | 45,500 |
PSUs | |
Number of Shares (in thousands) | |
Outstanding, beginning balance (in shares) | 44,200 |
Granted (in shares) | 19,900 |
Exercised/Vested/Settled (in shares) | 0 |
Expired or forfeited (in shares) | (3,600) |
Outstanding, ending balance (in shares) | 60,500 |
Employee Benefit and Stock In_7
Employee Benefit and Stock Incentive Plans - Weighted-average Grant Date Fair Value of Awards Granted (Details) | 12 Months Ended |
Jan. 02, 2022$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Options, Weighted Average Grant Date Fair Value (in dollars per share) | $ 48.51 |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted Average Grant Date Fair Value (in dollars per share) | 171.20 |
DSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted Average Grant Date Fair Value (in dollars per share) | 174.42 |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted Average Grant Date Fair Value (in dollars per share) | $ 166.15 |
Employee Benefit and Stock In_8
Employee Benefit and Stock Incentive Plans - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expenses recognized | $ 14.3 | $ 10.6 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expenses recognized | 4 | 4.7 |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expenses recognized | 6.4 | 4.1 |
DSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expenses recognized | 0.6 | 0.8 |
PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expenses recognized | $ 3.3 | $ 1 |
Employee Benefit and Stock In_9
Employee Benefit and Stock Incentive Plans - Unrecognized Stock-based Compensation Expense (Details) (Details) $ in Millions | 12 Months Ended |
Jan. 02, 2022USD ($) | |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation | $ 5.5 |
Weighted Average Remaining Period | 2 years 3 months 18 days |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation | $ 16.4 |
Weighted Average Remaining Period | 2 years 9 months 18 days |
DSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation | $ 0.2 |
Weighted Average Remaining Period | 9 months 18 days |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation | $ 2.6 |
Weighted Average Remaining Period | 1 year 9 months 18 days |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) | Jan. 02, 2022 | Apr. 04, 2021 | Jan. 03, 2021 |
Debt Instrument [Line Items] | |||
Total gross long-term debt | $ 260,200,000 | $ 269,000,000 | |
Less: unamortized debt issuance costs and discounts on debt | (5,000,000) | (5,500,000) | |
Total debt | 255,200,000 | 263,500,000 | |
Less: current portion | (4,000,000) | (2,800,000) | |
Total long-term debt | 251,200,000 | 260,700,000 | |
ABL facility | |||
Debt Instrument [Line Items] | |||
Total gross long-term debt | 0 | 0 | |
Term loans | |||
Debt Instrument [Line Items] | |||
Total gross long-term debt | 255,400,000 | 269,000,000 | |
Hybrid debt instruments | |||
Debt Instrument [Line Items] | |||
Total gross long-term debt | 4,800,000 | $ 5,900,000 | $ 0 |
Less: current portion | (1,500,000) | (1,500,000) | |
Total long-term debt | $ 3,300,000 | $ 4,400,000 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) | Dec. 31, 2021 | Mar. 23, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Feb. 01, 2019 | Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | Apr. 04, 2021 | Dec. 30, 2018 |
Debt Instrument [Line Items] | ||||||||||
Outstanding balance | $ 260,200,000 | $ 269,000,000 | ||||||||
Repayments of term loan facility | $ 68,000,000 | $ 31,000,000 | $ 138,400,000 | 338,600,000 | 172,800,000 | $ 4,500,000 | ||||
Write off of debt issuance costs and discounts | $ 800,000 | 900,000 | 2,200,000 | 400,000 | ||||||
Interest expense | 19,200,000 | 31,000,000 | 33,400,000 | |||||||
Interest expense related to ABL facility and Term Loan Facility | 14,700,000 | 25,900,000 | 30,100,000 | |||||||
Discounts and debt issuance costs capitalized | 2,400,000 | 900,000 | ||||||||
Amortization expense related to debt issuance costs | 2,300,000 | 4,100,000 | 2,000,000 | |||||||
Interest expense incurred related to finance leases | 1,400,000 | 1,000,000 | 900,000 | |||||||
Long term debt current | 4,000,000 | 2,800,000 | ||||||||
Total long-term debt | 251,200,000 | 260,700,000 | ||||||||
Losses recognized in income | 1,100,000 | |||||||||
Stockholders' equity | 1,057,700,000 | 795,000,000 | $ 393,200,000 | $ 301,800,000 | ||||||
Interest rate contracts | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Accumulated other comprehensive loss related to interest rate swap expected to be reclassified to earnings | (3,100,000) | |||||||||
Interest rate contracts | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stockholders' equity | 1,800,000 | |||||||||
Interest rate contracts | Derivatives designated as hedging instruments | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stockholders' equity | 600,000 | |||||||||
Interest rate contracts | Derivatives not designated as hedging instruments | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stockholders' equity | 2,400,000 | |||||||||
ABL facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 375,000,000 | |||||||||
Remaining borrowing capacity under credit facility | 364,100,000 | 362,300,000 | ||||||||
Outstanding balance | $ 0 | $ 0 | ||||||||
Commitment fee for the unfunded amount (percent) | 0.25% | 0.25% | ||||||||
ABL facility | Minimum | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (percent) | 1.25% | |||||||||
ABL facility | Minimum | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (percent) | 0.25% | |||||||||
ABL facility | Maximum | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (percent) | 1.75% | |||||||||
ABL facility | Maximum | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (percent) | 0.75% | |||||||||
Term loans | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Outstanding balance | $ 255,400,000 | $ 269,000,000 | ||||||||
Face amount of loan | $ 325,000,000 | |||||||||
Debt instrument premium payable (percent) | 1.00% | |||||||||
Interest rate on outstanding borrowings (percent) | 2.50% | |||||||||
Quarterly payment as percentage of initial principal amount | 0.25% | |||||||||
Percentage of excess cash flow to be paid for annual mandatory prepayments | 50.00% | |||||||||
Amount of excess cash flows which triggers mandatory prepayment | $ 15,000,000 | |||||||||
Leverage ratio | 3 | |||||||||
Term loans | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (percent) | 2.00% | |||||||||
Debt instrument, basis spread of variable rate, floor (percent) | 0.50% | |||||||||
Term loans | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate (percent) | 1.00% | |||||||||
Hybrid debt instruments | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Outstanding balance | $ 4,800,000 | $ 0 | $ 5,900,000 | |||||||
Long term debt current | 1,500,000 | 1,500,000 | ||||||||
Total long-term debt | $ 3,300,000 | $ 4,400,000 |
Long-Term Debt - Maturities of
Long-Term Debt - Maturities of Long-term Debt Outstanding (Details) - USD ($) $ in Millions | Jan. 02, 2022 | Jan. 03, 2021 |
Debt Disclosure [Abstract] | ||
2022 | $ 4 | |
2023 | 4.1 | |
2024 | 3.4 | |
2025 | 3 | |
2026 | 3.2 | |
Thereafter | 242.5 | |
Total | $ 260.2 | $ 269 |
Long-Term Debt - Interest Rate
Long-Term Debt - Interest Rate Swaps (Details) - USD ($) $ in Millions | Mar. 23, 2021 | Dec. 17, 2018 | Jun. 30, 2017 |
Forward-starting interest rate swap 3 | Derivatives designated as hedging instruments | |||
Derivative [Line Items] | |||
Notional Amount (in millions) | $ 34 | ||
Fixed Interest Rate | 2.9345% | ||
Interest rate swap 7 | Derivatives designated as hedging instruments | |||
Derivative [Line Items] | |||
Notional Amount (in millions) | $ 50 | ||
Fixed Interest Rate | 0.995% | ||
Interest rate swap 8 | Derivatives designated as hedging instruments | |||
Derivative [Line Items] | |||
Notional Amount (in millions) | $ 90 | ||
Fixed Interest Rate | 0.986% | ||
Interest rate swap 9 | Derivatives designated as hedging instruments | |||
Derivative [Line Items] | |||
Notional Amount (in millions) | $ 70 | ||
Fixed Interest Rate | 0.99784% | ||
Forward-starting interest rate swap 1 | Derivatives not designated as hedging instruments | |||
Derivative [Line Items] | |||
Notional Amount (in millions) | $ 58 | ||
Fixed Interest Rate | 2.1345% | ||
Forward-starting interest rate swap 2 | Derivatives not designated as hedging instruments | |||
Derivative [Line Items] | |||
Notional Amount (in millions) | $ 116 | ||
Fixed Interest Rate | 2.151% |
Long-Term Debt - Summary of Fai
Long-Term Debt - Summary of Fair Value of Interest Rate Derivatives (Details) - Interest rate contracts - USD ($) $ in Millions | Jan. 02, 2022 | Jan. 03, 2021 |
Derivative [Line Items] | ||
Derivative Assets | $ 2.5 | $ 0 |
Derivative Liabilities | 1.8 | 9.1 |
Derivatives designated as hedging instruments | Other assets | ||
Derivative [Line Items] | ||
Derivative Assets | 2.5 | 0 |
Derivatives designated as hedging instruments | Accrued liabilities | ||
Derivative [Line Items] | ||
Derivative Liabilities | 1.2 | 2.2 |
Derivatives designated as hedging instruments | Other long-term liabilities | ||
Derivative [Line Items] | ||
Derivative Liabilities | 0.6 | 2.6 |
Derivatives not designated as hedging instruments | Accrued liabilities | ||
Derivative [Line Items] | ||
Derivative Liabilities | 0 | 1.7 |
Derivatives not designated as hedging instruments | Other long-term liabilities | ||
Derivative [Line Items] | ||
Derivative Liabilities | $ 0 | $ 2.6 |
Long-Term Debt - Pre-tax Amount
Long-Term Debt - Pre-tax Amounts of Derivatives Designated as Cash Flow Hedges in AOCI (Details) - Interest rate contracts - Interest and other non-operating expenses, net - USD ($) $ in Millions | 12 Months Ended | |
Jan. 02, 2022 | Jan. 03, 2021 | |
Derivatives designated as hedging instruments | ||
Derivative [Line Items] | ||
Gain (Loss) Recorded in OCI | $ 1 | $ (0.6) |
Gain (Loss) Reclassified from AOCI into Income | (2.2) | (4.1) |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Gain (Loss) Reclassified from AOCI into Income | (2.4) | (1.1) |
Gain (Loss) Reclassified from AOCI into Income | $ (0.1) | $ (0.6) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate (percent) | 19.00% | 18.50% | 15.10% | |
Undistributed earnings of foreign subsidiaries | $ 24,600,000 | |||
Amount of unrecognized deferred tax liability | 1,200,000 | |||
Valuation allowance | 4,200,000 | $ 4,500,000 | $ 4,600,000 | $ 4,800,000 |
State NOL carryforwards | 4,300,000 | |||
Unrecognized tax benefits, income tax penalties and interest accrued | $ 0 | $ 0 | $ 0 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Income (Loss) Before Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 286.3 | $ 144.5 | $ 87.5 |
Foreign | 8.2 | 4.3 | 4 |
Income before taxes | $ 294.5 | $ 148.8 | $ 91.5 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Current income tax expense | |||
U.S. federal | $ 44.1 | $ 19.2 | $ 11.7 |
U.S. state and local | 12.4 | 7.5 | 4.4 |
Foreign | 2.7 | 0.4 | 1.1 |
Total current | 59.2 | 27.1 | 17.2 |
Deferred income tax (benefit) expense | |||
U.S. federal | (1.8) | 0.8 | (2) |
U.S. state and local | (0.7) | (0.8) | (1.3) |
Foreign | (0.6) | 0.4 | (0.1) |
Total deferred | (3.1) | 0.4 | (3.4) |
Total | $ 56.1 | $ 27.5 | $ 13.8 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Income Tax Contingency [Line Items] | |||
U.S. federal statutory expense | $ 61.9 | $ 31.2 | $ 19.2 |
State and local income taxes, net(a) | 9.1 | 5.1 | 2.2 |
Excess tax benefits | (16.5) | (8.9) | (7.7) |
Other, net | 1.6 | 0.1 | 0.1 |
Total | 56.1 | 27.5 | 13.8 |
State and local income taxes, net excess tax benefits | 9.1 | 5.1 | 2.2 |
Accounting Standards Update 2016-09 | |||
Income Tax Contingency [Line Items] | |||
State and local income taxes, net(a) | (3.7) | (2) | (1.9) |
State and local income taxes, net excess tax benefits | $ (3.7) | $ (2) | $ (1.9) |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Income Taxes (Details) - USD ($) $ in Millions | Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 |
Deferred tax assets: | ||||
Net operating losses | $ 4.3 | $ 4.8 | ||
Allowance for uncollectible accounts | 6.4 | 5.5 | ||
Inventory | 3.4 | 2.7 | ||
Intangible assets | 1.7 | 0 | ||
Accrued compensation | 3.3 | 2.4 | ||
Stock compensation | 6 | 4.7 | ||
Deferred employer payroll taxes | 1.5 | 3.1 | ||
Environmental reserve | 0.6 | 0.6 | ||
Deferred transaction costs | 2.4 | 2 | ||
Operating lease liabilities | 79 | 68.4 | ||
Interest rate swaps | 0 | 2.3 | ||
Other | 4.2 | 1.7 | ||
Total gross deferred tax assets | 112.8 | 98.2 | ||
Valuation allowance | (4.2) | (4.5) | $ (4.6) | $ (4.8) |
Total net deferred tax assets | 108.6 | 93.7 | ||
Deferred tax liabilities: | ||||
Fixed assets and land | (23.7) | (17.8) | ||
Intangible assets | 0 | (4.9) | ||
Goodwill | (9.1) | (6.5) | ||
Deferred financing costs | (0.2) | (0.3) | ||
Operating lease right-of-use assets | (75.7) | (65.5) | ||
Interest rate swaps | (0.2) | 0 | ||
Other | (1.6) | (1.7) | ||
Total deferred tax liabilities | (110.5) | (96.7) | ||
Net deferred tax liabilities | $ (1.9) | $ (3) |
Income Taxes - Deferred Taxes i
Income Taxes - Deferred Taxes in Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Jan. 02, 2022 | Jan. 03, 2021 |
Income Tax [Line Items] | ||
Deferred tax assets (Note 1 and Note 9) | $ 3.2 | $ 2.4 |
Deferred tax liabilities | (5.1) | (5.4) |
Net deferred tax liabilities | (1.9) | (3) |
State and local jurisdictions | ||
Income Tax [Line Items] | ||
Deferred tax assets (Note 1 and Note 9) | 2.8 | 2.4 |
Foreign | ||
Income Tax [Line Items] | ||
Deferred tax assets (Note 1 and Note 9) | 0.4 | 0 |
Deferred tax liabilities | 0 | (0.2) |
U.S. federal tax authority | ||
Income Tax [Line Items] | ||
Deferred tax liabilities | $ (5.1) | $ (5.2) |
Income Taxes - Activity Within
Income Taxes - Activity Within the Tax Valuation Allowance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Increase (Decrease) in Valuation Allowance [Roll Forward] | |||
Beginning balance | $ 4.5 | $ 4.6 | $ 4.8 |
Decrease in valuation allowance | (0.3) | (0.1) | (0.2) |
Ending balance | $ 4.2 | $ 4.5 | $ 4.6 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Line of Credit Facility [Line Items] | |||
Undiscounted cost of future remediation efforts | $ 3,900,000 | $ 3,600,000 | |
Amount of liability to be paid by Deere | 2,500,000 | ||
Maximum amount of Company's exposure to environmental liability | 2,400,000 | ||
Indemnification asset recorded against the liability | 1,500,000 | 1,200,000 | |
Letter of credit, amount outstanding | 10,900,000 | 8,700,000 | |
Borrowings on asset-based credit facility | 161,900,000 | 285,400,000 | $ 273,700,000 |
Letter of credit | |||
Line of Credit Facility [Line Items] | |||
Borrowings on asset-based credit facility | $ 0 | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies - Purchase Commitments (Details) | 12 Months Ended | ||
Jan. 02, 2022USD ($)locationT | Jan. 03, 2021USD ($) | Dec. 29, 2019USD ($) | |
Long-term Purchase Commitment [Line Items] | |||
Expected payments in 2022 | $ 82,400,000 | ||
Expected payments in 2023 | 39,000,000 | ||
Expected payments in 2024 | 39,100,000 | ||
Expected payments in 2025 | 300,000 | ||
Approximate purchases | $ 68,300,000 | $ 50,600,000 | $ 48,000,000 |
Purchase commitment minimum (in tons) | location | 18,000 | ||
Contract period | 10 years | ||
Total purchase commitment (in tons) | T | 180,000 | ||
Fee for shortfall | $ 195 | ||
Long-term purchase commitment, amount | 25,200,000 | ||
Various service commitments, future obligation | 18,900,000 | ||
Supplier, Single Contract | |||
Long-term Purchase Commitment [Line Items] | |||
Various service commitments, future obligation | 5,800,000 | ||
Nursery Products and Grass Seeds | |||
Long-term Purchase Commitment [Line Items] | |||
Total future purchase obligations | $ 160,800,000 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - shares | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares used in computation of basic earnings per share (in shares) | 44,578,649 | 42,858,691 | 41,218,843 |
Shares used in computation of diluted earnings per share (in shares) | 45,805,373 | 44,093,501 | 42,750,348 |
Share-based Payment Arrangement | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 4,690 | 5,730 | 258,829 |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Effect of dilutive securities (in shares) | 1,066,589 | 1,153,367 | 1,471,361 |
RSUs and PSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Effect of dilutive securities (in shares) | 156,074 | 73,321 | 48,416 |
DSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Effect of dilutive securities (in shares) | 4,061 | 8,122 | 11,728 |
Schedule I - SiteOne Landscap_2
Schedule I - SiteOne Landscape Supply, Inc.’s Condensed Financial Statements - Condensed Balance Sheets (Details) - USD ($) $ in Millions | Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 |
Assets | ||||
Deferred tax assets (Note 1 and Note 9) | $ 3.2 | $ 2.4 | ||
Total assets | 2,116.1 | 1,695.7 | ||
Liabilities and Stockholders’ Equity | ||||
Total liabilities | 1,058.4 | 900.7 | ||
Stockholders' Equity: | ||||
Common stock, par value $0.01; 1,000,000,000 shares authorized; 44,788,385 and 44,300,380 shares issued, and 44,767,474 and 44,279,469 shares outstanding at January 2, 2022 and January 3, 2021, respectively | 0.4 | 0.4 | ||
Additional paid-in capital | 562 | 541.8 | ||
Retained earnings | 497.5 | 259.1 | ||
Accumulated other comprehensive loss | (2.2) | (6.3) | ||
Total stockholders’ equity | 1,057.7 | 795 | $ 393.2 | $ 301.8 |
Total liabilities and stockholders’ equity | 2,116.1 | 1,695.7 | ||
Parent Company | ||||
Assets | ||||
Investment in wholly owned subsidiary | 1,057.1 | 794.3 | ||
Deferred tax assets (Note 1 and Note 9) | 0.6 | 0.7 | ||
Total assets | 1,057.7 | 795 | ||
Liabilities and Stockholders’ Equity | ||||
Total liabilities | 0 | 0 | ||
Stockholders' Equity: | ||||
Common stock, par value $0.01; 1,000,000,000 shares authorized; 44,788,385 and 44,300,380 shares issued, and 44,767,474 and 44,279,469 shares outstanding at January 2, 2022 and January 3, 2021, respectively | 0.4 | 0.4 | ||
Additional paid-in capital | 562 | 541.8 | ||
Retained earnings | 497.5 | 259.1 | ||
Accumulated other comprehensive loss | (2.2) | (6.3) | ||
Total stockholders’ equity | 1,057.7 | 795 | ||
Total liabilities and stockholders’ equity | $ 1,057.7 | $ 795 |
Schedule I - SiteOne Landscap_3
Schedule I - SiteOne Landscape Supply, Inc.’s Condensed Financial Statements - Condensed Balance Sheets (Parenthetical) (Details) - $ / shares | Jan. 02, 2022 | Jan. 03, 2021 | Aug. 03, 2020 |
Condensed Financial Statements, Captions [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 | |
Common stock, shares issued (in shares) | 44,788,385 | 44,300,380 | |
Common stock, shares outstanding (in shares) | 44,767,474 | 44,279,469 | |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 | |
Common stock, shares issued (in shares) | 44,788,385 | 44,300,380 | |
Common stock, shares outstanding (in shares) | 44,767,474 | 44,279,469 |
Schedule I - SiteOne Landscap_4
Schedule I - SiteOne Landscape Supply, Inc.’s Condensed Financial Statements - Condensed Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Condensed Income Statement and Comprehensive Income Statement [Line Items] | |||
Income before taxes | $ 294.5 | $ 148.8 | $ 91.5 |
Net income | 238.4 | 121.3 | 77.7 |
Total other comprehensive income (loss) | 4.1 | 0.2 | (5.7) |
Comprehensive income | 242.5 | 121.5 | 72 |
Parent Company | |||
Condensed Income Statement and Comprehensive Income Statement [Line Items] | |||
Equity in Net income of subsidiary | 238.4 | 121.3 | 77.7 |
Income before taxes | 238.4 | 121.3 | 77.7 |
Net income | 238.4 | 121.3 | 77.7 |
Total other comprehensive income (loss) | 4.1 | 0.2 | (5.7) |
Comprehensive income | $ 242.5 | $ 121.5 | $ 72 |
Schedule I - SiteOne Landscap_5
Schedule I - SiteOne Landscape Supply, Inc.’s Condensed Financial Statements - Condensed Statements of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Cash Flows from Operating Activities: | |||
Net income | $ 238.4 | $ 121.3 | $ 77.7 |
Adjustments to reconcile Net income to net cash provided by operating activities: | |||
Net Cash Provided By Operating Activities | 210.8 | 229.4 | 130.8 |
Cash Flows from Investing Activities: | |||
Net Cash Used In Investing Activities | (182) | (184.2) | (91.9) |
Cash Flows from Financing Activities: | |||
Other financing activities | (4.7) | (1.7) | (0.5) |
Net Cash Used In Financing Activities | (30.4) | (9.1) | (37.3) |
Net Change In Cash | (1.5) | 36.2 | 1.7 |
Cash and cash equivalents: | |||
Beginning | 55.2 | 19 | 17.3 |
Ending | 53.7 | 55.2 | 19 |
Parent Company | |||
Cash Flows from Operating Activities: | |||
Net income | 238.4 | 121.3 | 77.7 |
Adjustments to reconcile Net income to net cash provided by operating activities: | |||
Equity in Net income of subsidiary | (238.4) | (121.3) | (77.7) |
Net Cash Provided By Operating Activities | 0 | 0 | 0 |
Cash Flows from Investing Activities: | |||
Distribution to subsidiary | 0 | (261.7) | 0 |
Net Cash Used In Investing Activities | 0 | (261.7) | 0 |
Cash Flows from Financing Activities: | |||
Special cash dividend | 0 | 261.7 | 0 |
Net Cash Used In Financing Activities | 0 | 261.7 | 0 |
Net Change In Cash | 0 | 0 | 0 |
Cash and cash equivalents: | |||
Beginning | 0 | 0 | 0 |
Ending | $ 0 | $ 0 | $ 0 |
Schedule I - SiteOne Landscap_6
Schedule I - SiteOne Landscape Supply, Inc.’s Condensed Financial Statements - Notes to Condensed Parent Company Only Financial Statements (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 03, 2020 | May 16, 2016 | May 02, 2016 | Dec. 29, 2013 | Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | Dec. 23, 2013 |
Temporary Equity [Line Items] | ||||||||
Shares sold in offering (in shares) | 2,150,000 | |||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Aggregate proceeds from stock offering | $ 262.3 | |||||||
Payments of stock issuance costs | $ 0.6 | |||||||
Deferred tax assets, transaction costs | $ 2.4 | $ 2 | ||||||
Deferred tax asset balance related to Tax Cuts and Jobs Act | 0.6 | |||||||
Parent Company | ||||||||
Temporary Equity [Line Items] | ||||||||
Equity interest issued, percentage of outstanding stock | 40.00% | |||||||
Special cash dividend | $ 0 | $ (261.7) | $ 0 | |||||
Shares sold in offering (in shares) | 2,150,000 | |||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Aggregate proceeds from stock offering | $ 262.3 | |||||||
Payments of stock issuance costs | $ 0.6 | |||||||
CD&R | Parent Company | ||||||||
Temporary Equity [Line Items] | ||||||||
Transaction expenses | $ 9.8 | |||||||
Transaction expenses not deductible for tax purposes | 3.7 | |||||||
Tax deductible transaction expenses | 6.1 | |||||||
Deferred tax assets, transaction costs | $ 2.2 | |||||||
Amortized transaction costs | $ 0.4 | $ 0.4 | ||||||
Amount of deferred tax assets amortized | $ 0.1 | $ 0.1 | ||||||
Over-Allotment Option | ||||||||
Temporary Equity [Line Items] | ||||||||
Shares sold in offering (in shares) | 322,500 | |||||||
Exercisable period | 30 days | |||||||
Over-Allotment Option | Parent Company | ||||||||
Temporary Equity [Line Items] | ||||||||
Shares sold in offering (in shares) | 322,500 | |||||||
Exercisable period | 30 days | |||||||
Common stock | CD&R | ||||||||
Temporary Equity [Line Items] | ||||||||
Equity interest issued, percentage of outstanding stock | 40.00% | |||||||
Common stock | IPO | Parent Company | ||||||||
Temporary Equity [Line Items] | ||||||||
Shares of common stock issued as a result of conversion of stock (shares) | 25,303,164 | |||||||
Redeemable Convertible Preferred Stock | Parent Company | ||||||||
Temporary Equity [Line Items] | ||||||||
Equity interest issued, percentage of outstanding stock | 60.00% | |||||||
Redeemable Convertible Preferred Stock | CD&R | ||||||||
Temporary Equity [Line Items] | ||||||||
Equity interest issued, percentage of outstanding stock | 60.00% | |||||||
Redeemable Convertible Preferred Stock | CD&R | Parent Company | ||||||||
Temporary Equity [Line Items] | ||||||||
Special cash dividend | $ 112.4 | |||||||
SiteOne Landscape Supply Holding, LLC | ||||||||
Temporary Equity [Line Items] | ||||||||
Percentage of ownership of subsidiaries | 100.00% | |||||||
SiteOne Landscape Supply Holding, LLC | Parent Company | ||||||||
Temporary Equity [Line Items] | ||||||||
Percentage of ownership of subsidiaries | 100.00% |