Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Sep. 24, 2016 | Nov. 08, 2016 | Mar. 24, 2016 | |
Document Information [Line Items] | |||
Entity Registrant Name | J&J SNACK FOODS CORP | ||
Entity Central Index Key | 785,956 | ||
Trading Symbol | jjsf | ||
Current Fiscal Year End Date | --09-24 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Common Stock, Shares Outstanding (in shares) | 18,682,723 | ||
Entity Public Float | $ 1,568,251,219 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 24, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 24, 2016 | Sep. 26, 2015 |
Current assets | ||
Cash and cash equivalents | $ 140,652 | $ 133,689 |
Marketable securities held to maturity | 13,539 | |
Accounts receivable, net | 98,325 | 102,649 |
Inventories | 88,684 | 82,657 |
Prepaid expenses and other | 13,904 | 6,557 |
Total current assets | 355,104 | 325,552 |
Property, plant and equipment, at cost | 605,045 | 571,675 |
Less accumulated depreciation and amortization | 420,832 | 399,621 |
Property, plant and equipment, net | 184,213 | 172,054 |
Other assets | ||
Goodwill | 86,442 | 86,442 |
Other intangible assets, net | 41,819 | 45,819 |
Marketable securities held to maturity | 90,732 | 66,660 |
Marketable securities available for sale | 29,465 | 39,638 |
Other | 2,712 | 3,504 |
Total other assets | 251,170 | 242,063 |
Total Assets | 790,487 | 739,669 |
Current Liabilities | ||
Current obligations under capital leases | 365 | 273 |
Accounts payable | 62,026 | 59,206 |
Accrued insurance liability | 10,119 | 10,231 |
Accrued liabilities | 6,161 | 5,365 |
Accrued compensation expense | 16,340 | 15,318 |
Dividends payable | 7,280 | 6,723 |
Total current liabilities | 102,291 | 97,116 |
Long-term obligations under capital leases | 1,235 | 1,196 |
Deferred income taxes | 48,186 | 40,523 |
Other long-term liabilities | 801 | 915 |
Stockholders' Equity | ||
Preferred stock, $1 par value; authorized 10,000,000 shares; none issued | ||
Common stock, no par value; authorized, 50,000,000 shares; issued and outstanding 18,668,000 and 18,676,000 respectively | 25,332 | 31,653 |
Accumulated other comprehensive loss | (13,415) | (10,897) |
Retained Earnings | 626,057 | 579,163 |
Total stockholders' equity | 637,974 | 599,919 |
Total Liabilities and Stockholders' Equity | $ 790,487 | $ 739,669 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 24, 2016 | Sep. 26, 2015 |
Preferred, par value (in dollars per share) | $ 1 | $ 1 |
Preferred, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 18,668,000 | 18,676,000 |
Common stock, shares outstanding (in shares) | 18,668,000 | 18,676,000 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Thousands | 12 Months Ended | |||
Sep. 24, 2016 | Sep. 26, 2015 | Sep. 27, 2014 | ||
Net Sales | $ 992,781,000 | $ 976,256,000 | $ 919,451,000 | |
Cost of goods sold (1) | [1] | 688,314,000 | 675,366,000 | 631,874,000 |
Gross Profit | 304,467,000 | 300,890,000 | 287,577,000 | |
Operating expenses | ||||
Marketing (2) | [2] | 85,963,000 | 85,160,000 | 78,632,000 |
Distribution (3) | [3] | 73,114,000 | 74,158,000 | 71,159,000 |
Administrative (4) | [4] | 32,299,000 | 30,891,000 | 29,784,000 |
Other general expense (income) | 281,000 | (207,000) | 1,154,000 | |
Total operating expenses | 191,657,000 | 190,002,000 | 180,729,000 | |
Operating Income | 112,810,000 | 110,888,000 | 106,848,000 | |
Other income (expenses) | ||||
Investment income | 4,132,000 | 1,157,000 | 4,473,000 | |
Interest expense & other | (123,000) | (126,000) | (115,000) | |
Earnings before income taxes | 116,819,000 | 111,919,000 | 111,206,000 | |
Income taxes | 40,844,000 | 41,736,000 | 39,392,000 | |
NET EARNINGS | $ 75,975,000 | $ 70,183,000 | $ 71,814,000 | |
Earnings per diluted share (in dollars per share) | $ 4.05 | $ 3.73 | $ 3.82 | |
Weighted average number of diluted shares (in shares) | 18,769 | 18,819 | 18,807 | |
Earnings per basic share (in dollars per share) | $ 4.07 | $ 3.76 | $ 3.85 | |
Weighted average number of basic shares (in shares) | 18,649 | 18,685 | 18,677 | |
[1] | Includes share-based compensation expense of $609 for the year ended September 24, 2016, $471 for the year ended September 26, 2015 and $466 for the year ended September 27, 2014. | |||
[2] | Includes share-based compensation expense of $924 for the year ended September 24, 2016, $709 for the year ended September 26, 2015 and $673 for the year ended September 27, 2014. | |||
[3] | Includes share-based compensation expense of $48 for the year ended September 24, 2016, $44 for the year ended September 26, 2015 and $42 for the year ended September 27, 2014. | |||
[4] | Includes share-based compensation expense of $794 for the year ended September 24, 2016, $942 for the year ended September 26, 2015 and $895 for the year ended September 27, 2014. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 24, 2016 | Sep. 26, 2015 | Sep. 27, 2014 | |
Net earnings | $ 75,975 | $ 70,183 | $ 71,814 |
Foreign currency translation adjustments | (3,065) | (5,389) | (929) |
Unrealized holding (loss) gain on marketable securities | (8) | (2,607) | 505 |
Amount reclassified from accumulated other comprehensive income | 555 | 3,087 | 366 |
Total Other Comprehensive Loss, net of tax | (2,518) | (4,909) | (58) |
Comprehensive Income | $ 73,457 | $ 65,274 | $ 71,756 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - USD ($) | Common Stock [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Sep. 28, 2013 | 18,677,000 | |||
Balance at Sep. 28, 2013 | $ 34,516,000 | $ (5,930,000) | $ 487,979,000 | $ 516,565,000 |
Issuance of common stock upon exercise of stock options (in shares) | 52,000 | |||
Issuance of common stock upon exercise of stock options | $ 2,227,000 | 2,227,000 | ||
Issuance of common stock for employee stock purchase plan (in shares) | 16,000 | |||
Issuance of common stock for employee stock purchase plan | $ 1,102,000 | 1,102,000 | ||
Foreign currency translation adjustment | (929,000) | (929,000) | ||
Unrealized holding gain on marketable securities | 871,000 | 871,000 | ||
Issuance of common stock under deferred stock plan | 34,000 | 34,000 | ||
Dividends declared | (23,908,000) | (23,908,000) | ||
Share-based compensation | $ 2,247,000 | $ 2,247,000 | ||
Repurchase of common stock (in shares) | (82,000) | (81,685) | ||
Repurchase of common stock | $ (7,505,000) | $ (7,504,729) | ||
Net earnings | 71,814,000 | 71,814,000 | ||
Balance (in shares) at Sep. 27, 2014 | 18,663,000 | |||
Balance at Sep. 27, 2014 | $ 32,621,000 | (5,988,000) | 535,885,000 | 562,518,000 |
Issuance of common stock upon exercise of stock options (in shares) | 72,000 | |||
Issuance of common stock upon exercise of stock options | $ 3,489,000 | 3,489,000 | ||
Issuance of common stock for employee stock purchase plan (in shares) | 14,000 | |||
Issuance of common stock for employee stock purchase plan | $ 1,174,000 | 1,174,000 | ||
Foreign currency translation adjustment | (5,389,000) | (5,389,000) | ||
Unrealized holding gain on marketable securities | 480,000 | 480,000 | ||
Issuance of common stock under deferred stock plan | 21,000 | 21,000 | ||
Dividends declared | (26,905,000) | (26,905,000) | ||
Share-based compensation | $ 2,359,000 | $ 2,359,000 | ||
Repurchase of common stock (in shares) | (73,000) | (72,698) | ||
Repurchase of common stock | $ (8,011,000) | $ (8,011,118) | ||
Net earnings | 70,183,000 | $ 70,183,000 | ||
Balance (in shares) at Sep. 26, 2015 | 18,676,000 | 18,676,000 | ||
Balance at Sep. 26, 2015 | $ 31,653,000 | (10,897,000) | 579,163,000 | $ 599,919,000 |
Issuance of common stock upon exercise of stock options (in shares) | 120,000 | |||
Issuance of common stock upon exercise of stock options | $ 5,249,000 | 5,249,000 | ||
Issuance of common stock for employee stock purchase plan (in shares) | 14,000 | |||
Issuance of common stock for employee stock purchase plan | $ 1,320,000 | 1,320,000 | ||
Foreign currency translation adjustment | (3,065,000) | (3,065,000) | ||
Unrealized holding gain on marketable securities | 547,000 | 547,000 | ||
Issuance of common stock under deferred stock plan | 7,000 | 7,000 | ||
Dividends declared | (29,081,000) | (29,081,000) | ||
Share-based compensation | $ 2,368,000 | $ 2,368,000 | ||
Repurchase of common stock (in shares) | (142,000) | (141,700) | ||
Repurchase of common stock | $ (15,265,000) | $ (15,265,019) | ||
Net earnings | 75,975,000 | $ 75,975,000 | ||
Balance (in shares) at Sep. 24, 2016 | 18,668,000 | 18,668,000 | ||
Balance at Sep. 24, 2016 | $ 25,332,000 | $ (13,415,000) | $ 626,057,000 | $ 637,974,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Sep. 24, 2016 | Sep. 26, 2015 | Sep. 27, 2014 | |
Operating activities: | |||
Net earnings | $ 75,975,000 | $ 70,183,000 | $ 71,814,000 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation of fixed assets | 34,536,000 | 32,356,000 | 31,660,000 |
Amortization of intangibles and deferred costs | 5,587,000 | 5,915,000 | 5,433,000 |
Gains from disposals of property & equipment | (398,000) | (334,000) | (119,000) |
Amortization of bond premiums | 1,011,000 | 103,000 | |
Share-based compensation | 2,375,000 | 2,166,000 | 2,076,000 |
Deferred income taxes | 7,700,000 | (121,000) | (8,000) |
Loss on sale of marketable securities | 661,000 | 4,319,000 | 361,000 |
Changes in assets and liabilities, net of effects from purchase of companies: | |||
Decrease (increase) in accounts receivable, net | 3,571,000 | (3,123,000) | (8,913,000) |
Increase in inventories | (6,295,000) | (4,959,000) | (1,857,000) |
Increase in prepaid expenses and other | (7,386,000) | (2,871,000) | (182,000) |
Increase in accounts payable and accrued liabilities | 3,888,000 | 287,000 | 6,831,000 |
Net cash provided by operating activities | 121,225,000 | 103,921,000 | 107,096,000 |
Investing activities: | |||
Payments for purchases of companies, net of cash acquired | (615,000) | (28,360,000) | |
Purchases of property, plant and equipment | (48,709,000) | (48,641,000) | (39,385,000) |
Purchases of marketable securities | (41,786,000) | (90,240,000) | (26,932,000) |
Proceeds from Sale and Maturity of Marketable Securities | 13,224,000 | 110,117,000 | 7,245,000 |
Proceeds from disposal of property, plant and equipment | 2,294,000 | 1,786,000 | 1,572,000 |
Other | 375,000 | (898,000) | (806,000) |
Net cash used in investing activities | (74,602,000) | (28,491,000) | (86,666,000) |
Financing activities: | |||
Payments to repurchase common stock | (15,265,000) | (8,011,000) | (7,505,000) |
Proceeds from issuance of common stock | 6,570,000 | 4,663,000 | 3,320,000 |
Payments on capitalized lease obligations | (355,000) | (243,000) | (326,000) |
Payment of cash dividend | (28,523,000) | (26,154,000) | (20,924,000) |
Net cash used in financing activities | (37,573,000) | (29,745,000) | (25,435,000) |
Effect of exchange rates on cash and cash equivalents | (2,087,000) | (3,756,000) | (580,000) |
Net increase (decrease) in cash and cash equivalents | 6,963,000 | 41,929,000 | (5,585,000) |
Cash and cash equivalents at beginning of year | 133,689,000 | 91,760,000 | 97,345,000 |
Cash and cash equivalents at end of year | $ 140,652,000 | $ 133,689,000 | $ 91,760,000 |
Note A - Summary of Significant
Note A - Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 24, 2016 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES J & J Snack Foods Corp. and Subsidiaries (the Company) manufactures, markets and distributes a variety of nutritional snack foods and beverages to the food service and retail supermarket industries. A summary of the significant accounting policies consistently applied in the preparation of the accompanying consolidated financial statements follows. 1. Principles of Consolidation The consolidated financial statements were prepared in accordance with U.S. GAAP. These financial statements include the accounts of J & J Snack Foods Corp. and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in the consolidated financial statements. 2. Revenue Recognition We recognize revenue from our products when the products are shipped to our customers. Repair and maintenance equipment service revenue is recorded when it is performed provided the customer terms are that the customer is to be charged on a time and material basis or on a straight-line basis over the term of the contract when the customer has signed a service contract. Revenue is recognized only where persuasive evidence of an arrangement exists, our price is fixed or estimable and collectability is reasonably assured. We record offsets to revenue for allowances, end-user pricing adjustments, trade spending, coupon redemption costs and returned product. Customers generally do not have the right to return product unless it is damaged or defective. Our recorded liability for allowances, end-user pricing adjustments and trade spending was approximately $14.3 million at September 24, 2016 and $11.7 million at September 26, 2015. All amounts billed to customers related to shipping and handling are classified as revenues. Our product costs include amounts for shipping and handling, therefore, we charge our customers shipping and handling fees at the time the products are shipped or when services are performed. The cost of shipping products to the customer is recognized at the time the products are shipped to the customer and our policy is to classify them as Distribution expenses. The cost of shipping products to the customer classified as Distribution expenses was $73,114,000, $74,158,000 and $71,159,000 for the fiscal years ended 2016, 2015 and 2014, respectively. During the years ended September 24, 2016, September 26, 2015 and September 27, 2014, we sold $24,664,000, $25,536,000 and $22,826,000, respectively, of repair and maintenance service contracts in our frozen beverage business. At September 24, 2016 and September 26, 2015, deferred income on repair and maintenance service contracts was $1,671,000 and $1,579,000, respectively, of which $145,000 and $70,000 is included in other long-term liabilities as of September 24, 2016 and September 26, 2015, respectively and the balance is reflected as short-term and included in accrued liabilities on the consolidated balance sheet. Repair and maintenance service contract income of $24,571,000, $25,534,000 and $22,748,000 was recognized for the fiscal years ended 2016, 2015 and 2014, respectively. 3. Foreign Currency Assets and liabilities in foreign currencies are translated into U.S. dollars at the rate of exchange prevailing at the balance sheet date. Revenues and expenses are translated at the average rate of exchange for the period. The cumulative translation adjustment is recorded as a separate component of stockholders’ equity and changes to such are included in comprehensive income. 4. Use of Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 5. Cash Equivalents Cash equivalents are short-term, highly liquid investments with original maturities of three months or less. 6. Concentrations and related risks We maintain cash balances at financial institutions located in various states. We have cash balances at two banks totalling approximately $100 million that is in excess of FDIC insurance of $250,000 per bank. Financial instruments that could potentially subject us to concentrations of credit risk are trade accounts receivable; however, such risks are limited due to the large number of customers comprising our customer base and their dispersion across geographic regions. We usually have approximately 15 customers with accounts receivable balances of between $1 million and $10 million. We have several large customers that account for a significant portion of our sales. Our top ten customers accounted for 42%, 43% and 43% of our sales during fiscal years 2016, 2015 and 2014, respectively, with our largest customer accounting for 8% of our sales in 2016, 8% of our sales in 2015 and 8% of our sales in 2014. Three of the ten customers are food distributors who sell our product to many end users. About 30% of our employees are covered by collective bargaining agreements. None of our vendors supplied more than 10% of our ingredients and packaging in 2016, 2015 or 2014. The majority of our accounts receivable are due from trade customers. Credit is extended based on evaluation of our customers’ financial condition and collateral is not required. Accounts receivable payment terms vary and are stated in the financial statements at amounts due from customers net of an allowance for doubtful accounts. At September 24, 2016 and September 26, 2015, our accounts receivables were $98,325,000 and $102,649,000 net of an allowance for doubtful accounts of $571,000 and $304,000. Accounts receivable outstanding longer than the payment terms are considered past due. We determine our allowance by considering a number of factors, including the length of time trade accounts receivable are past due, our previous loss history, customers’ current ability to pay their obligations to us, and the condition of the general economy and the industry as a whole. We write off accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for doubtful accounts. 7. Inventories Inventories are valued at the lower of cost (determined by the first-in, first-out method) or market. We recognize abnormal amounts of idle facilities, freight, handling costs, and spoilage as charges of the current period. Additionally, we allocate fixed production overhead to inventories based on the normal capacity of our production facilities. We calculate normal capacity as the production expected to be achieved over a number of periods or seasons under normal circumstances, taking into account the loss of capacity resulting from planned maintenance. This requires us to use judgment to determine when production is outside the range of expected variation in production (either abnormally low or abnormally high). In periods of abnormally low production (for example, periods in which there is significantly lower demand, labor and material shortages exist, or there is unplanned equipment downtime) the amount of fixed overhead allocated to each unit of production is not increased. However, in periods of abnormally high production the amount of fixed overhead allocated to each unit of production is decreased to assure inventories are not measured above cost. 8. Investment Securities We classify our investment securities in one of three categories: held to maturity, trading, or available for sale. Our investment portfolio at September 24, 2016, consists of investments classified as held to maturity and available for sale. The securities that we have the positive intent and ability to hold to maturity are classified as held to maturity and are stated at amortized cost. Investments classified as available for sale are reported at fair market value with unrealized gains and losses related to the changes in fair value of the securities recognized in accumulated other comprehensive income (loss). The mutual funds and preferred stock in our available for sale portfolio do not have contractual maturities; however, we classify them as long term assets as it is our intent to hold them for a period of over one year, although we may sell some or all of them depending on presently unanticipated needs for liquidity or market conditions. See Note C for further information on our holdings of investment securities. 9. Depreciation and Amortization Depreciation of equipment and buildings is provided for by the straight-line method over the assets’ estimated useful lives. We review our equipment and buildings to ensure that they provide economic benefit and are not impaired. Amortization of improvements is provided for by the straight-line method over the term of the lease or the assets’ estimated useful lives, whichever is shorter. Licenses and rights, customer relationships and non-compete agreements are being amortized by the straight-line method over periods ranging from 3 to 20 years and amortization expense is reflected throughout operating expenses. Long-lived assets, including fixed assets and amortizing intangibles, are reviewed for impairment as events or changes in circumstances occur indicating that the carrying amount of 10. Fair Value of Financial Instruments The carrying value of our short-term financial instruments, such as accounts receivables and accounts payable, approximate their fair values, based on the short-term maturities of these instruments. 11. Income Taxes We account for our income taxes under the liability method. Under the liability method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse. Deferred tax expense is the result of changes in deferred tax assets and liabilities. Additionally, we recognize a liability for income taxes and associated penalties and interest for tax positions taken or expected to be taken in a tax return which are more likely than not to be overturned by taxing authorities (“uncertain tax positions”). We have not recognized a tax benefit in our financial statements for these uncertain tax positions. As of September 24, 2016 and September 26, 2015, the total amount of gross unrecognized tax benefits is $354,000 and $334,000; respectively, all of which would impact our effective tax rate over time, if recognized. We recognize interest and penalties related to income tax matters as a part of the provision for income taxes. We had $219,000 of accrued interest and penalties as of September 24, 2016 and $199,000 as of September 26, 2015. We did not recognize any penalties and interest resulting from tax settlements in the years ended September 24, 2016 and September 26, 2015. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: (in thousands) Balance at September 26, 2015 $ 334 Additions based on tax positions related to the current year 20 Reductions for tax positions of prior years - Settlements - Balance at September 24, 2016 $ 354 In addition to our federal tax return and tax returns for Mexico and Canada, we file tax returns in all states that have a corporate income tax. Virtually all the returns noted above are open for examination for three to four years. 12. Earnings Per Common Share Basic earnings per common share (EPS) excludes dilution and is computed by dividing income available to common shareholders by the weighted average common shares outstanding during the period. Diluted EPS takes into consideration the potential dilution that could occur if securities (stock options) or other contracts to issue common stock were exercised and converted into common stock. Our calculation of EPS is as follows: Fiscal Year Ended September 24, 2016 Income Shares Per Share (Numerator) (Denominator) Amount (in thousands, except per share amounts) Earnings Per Basic Share Net Income available to common stockholders $ 75,975 18,649 $ 4.07 Effect of Dilutive Securities Options - 120 (0.02 ) Earnings Per Diluted Share Net Income available to common stockholders plus assumed conversions $ 75,975 18,769 $ 4.05 180,170 anti-dilutive shares have been excluded in the computation of 2016 diluted EPS. Fiscal Year Ended September 26, 2015 Income Shares Per Share (Numerator) (Denominator) Amount (in thousands, except per share amounts) Earnings Per Basic Share Net Income available to common stockholders $ 70,183 18,685 $ 3.76 Effect of Dilutive Securities Options - 134 (0.03 ) Earnings Per Diluted Share Net Income available to common stockholders plus assumed conversions $ 70,183 18,819 $ 3.73 1,500 anti-dilutive shares have been excluded in the computation of 2015 diluted EPS. Fiscal Year Ended September 27, 2014 Income Shares Per Share (Numerator) (Denominator) Amount (in thousands, except per share amounts) Earnings Per Basic Share Net Income available to common stockholders $ 71,814 18,677 $ 3.85 Effect of Dilutive Securities Options - 130 (0.03 ) Earnings Per Diluted Share Net Income available to common stockholders plus assumed conversions $ 71,814 18,807 $ 3.82 No anti-dilutive shares have been excluded in the computation of 2014 diluted EPS. 13. Accounting for Stock-Based Compensation At September 24, 2016, the Company has three stock-based employee compensation plans. Share-based compensation was recognized as follows: Fiscal year ended September 24, September 26, September 27, 2016 2015 2014 (in thousands, except per share amounts) Stock options $ 86 $ 1,098 $ 1,262 Stock purchase plan 305 328 329 Stock issued to employees 4 6 17 Total share-based compensation $ 395 $ 1,432 $ 1,608 The above compensation is net of tax benefits $ 1,980 $ 734 $ 468 Income tax benefit related to share-based compensation for the year ended September 26, 2016 includes $885,000 as a result of our early adoption as of our fiscal March 2016 quarter of Accounting Standards Update No 2016-09, Improvements to Employee Share-Based Payment Accounting. Under this new standard, income tax benefit is recognized rather than additional paid in capital upon the exercise of stock options. At September 24, 2016, the Company has unrecognized compensation expense of approximately $3.1 million to be recognized over the next three fiscal years. The fair value of each option grant is estimated on the date of grant using the Black-Scholes options-pricing model with the following weighted average assumptions used for grants in fiscal 2016, 2015 and 2014: expected volatility of 16.7% for fiscal year 2016, expected volatility of 18.4% for fiscal year 2015 and 21.2% for fiscal year 2014: weighted average risk-free interest rates of 1.3%, 1.7% and 1.6%; dividend rate of 1.4%, 1.4% and .9% and expected lives ranging between 5 and 10 years for all years. An expected forfeiture rate of 19% was used for 2016, 19% was used for 2015 and 20% was used for 2014. Expected volatility is based on the historical volatility of the price of our common shares over the past 49 to 55 months for 5 year options and 10 years for 10 year options. We use historical information to estimate expected life and forfeitures within the valuation model. The expected term of awards represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Compensation cost is recognized using a straight-line method over the vesting or service period and is net of estimated forfeitures. 14. Advertising Costs Advertising costs are expensed as incurred. Total advertising expense was $4,870,000, $4,290,000 and $3,487,000 for the fiscal years 2016, 2015 and 2014, respectively. 15. Commodity Price Risk Management Our most significant raw material requirements include flour, packaging, shortening, corn syrup, sugar, juice, cheese, chocolate, and a variety of nuts. We attempt to minimize the effect of future price fluctuations related to the purchase of raw materials primarily through forward purchasing to cover future manufacturing requirements, generally for periods from 1 to 12 months. As of September 24, 2016, we have approximately $75 million of such commitments. Futures contracts are not used in combination with forward purchasing of these raw materials. Our procurement practices are intended to reduce the risk of future price increases, but also may potentially limit the ability to benefit from possible price decreases. Our policy is to recognize estimated losses on purchase commitments when they occur. At each of the last three fiscal year ends, we did not have any material losses on our purchase commitments. 16. Research and Development Costs Research and development costs are expensed as incurred. Total research and development expense was $525,000, $506,000 and $499,000 for the fiscal years 2016, 2015 and 2014, respectively. 17. Recent Accounting Pronouncements In May 2014, the FASB issued guidance on revenue recognition which says that we should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration which we expect to be entitled in exchange for those goods or services. This guidance is effective for our fiscal year ending September 2019. Early application is permitted. We anticipate that the impact of this guidance on our consolidated financial statements will not be material. In July 2015, the FASB issued guidance which requires an entity to measure inventory at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This guidance will simplify the subsequent measurement of inventory, as current guidance requires an entity to measure inventory at the lower of cost or market. Under current guidance, market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. This guidance is effective for our fiscal year ended September 2018. Early adoption is permitted. The adoption of this guidance in the December quarter did not have a material impact on our consolidated financial statements. In September 2015, the FASB issued guidance on accounting for business combinations which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. This guidance eliminates the requirement to retrospectively account for these adjustments. This guidance is effective for our fiscal year ended September 2018. Early adoption is permitted. This guidance did not impact amounts and disclosures related to previous business combinations; therefore, the adoption of this guidance in the December quarter did not impact our consolidated financial statements. In November 2015, the FASB issued guidance on the balance sheet classification of deferred taxes which eliminates the current requirement to present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet and now requires entities to classify all deferred tax assets and liabilities as noncurrent. This guidance is effective for our fiscal year ended September 2018. Early adoption is permitted. The adoption of this guidance in this Form 10-K did not have a material impact on our financial statements. In January 2016, the FASB issued guidance which requires an entity to measure equity investments at fair value with changes in fair value recognized in net income , to use the price that would be received by a seller when measuring the fair value of financial instruments for disclosure purposes, and which eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. Under present guidance, changes in fair value of equity investments are recognized in Stockholders’ Equity. This guidance is effective for our fiscal year ended September 2019. Early adoption is not permitted. We anticipate that the adoption of this guidance on our consolidated financial statements will not be material. In February 2016, the FASB issued guidance on lease accounting which requires that an entity recognize most leases on its balance sheet. The guidance retains a dual lease accounting model for purposes of income statement recognition, continuing the distinction between what are currently known as “capital” and “operating” leases for lessees. This guidance is effective for our fiscal year ended September 2020. We anticipate that the impact of this guidance on our financial statements will be material . In March 2016, the FASB issued guidance on share based compensation which requires that an entity recognize all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement as discrete items in the reporting period in which they occur. Under current guidance, excess tax benefits are recognized in additional paid-in capital and tax deficiencies are recognized either as an offset to accumulated excess tax benefits, or in the income statement. This guidance is effective for our fiscal year ended September 2018. Early adoption is permitted. See Note A.13 to these financial statements for a discussion of the impact the adoption of this guidance in our March 2016 quarter had on our consolidated financial statements. 18. Reclassifications Certain prior year financial statement amounts have been reclassified to be consistent with the presentation for the current year. |
Note B - Acquisitions
Note B - Acquisitions | 12 Months Ended |
Sep. 24, 2016 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | NOTE B – ACQUISITIONS In October 2013, we acquired the assets of New York Pretzel, a manufacturer and distributor of soft pretzels selling primarily in the northeast to foodservice and retail locations. Of the purchase price of $11.8 million, $849,000 was allocated to intangible assets, $7,716,000 was allocated to goodwill and $3,049,000 was allocated to property, plant and equipment. In May 2014, we acquired the stock of Philly’s Famous Water Ice, Inc. (PHILLY SWIRL). PHILLY SWIRL, located in Tampa, FL, produces frozen novelty products sold primarily to retail supermarket locations throughout the United States and to Canada with annual sales approximating $25 million. The allocation of the purchase price of $17.4 million is $4.0 million to working capital, $1.2 million to property, plant and equipment, $11.1 million to intangible assets, $1.8 million to goodwill, $4.0 million to deferred tax assets and $95,000 to other assets and $4.8 million to deferred tax liabilities. Acquisition costs of $269,000 for the New York Pretzel and PHILLY SWIRL acquisitions are included in other general expense in the consolidated statements of earnings for the year ended September 26, 2015. The goodwill and intangible assets acquired in the business combinations are recorded at fair value. To measure fair value for such assets, we use techniques including discounted expected future cash flows (Level 3 input). |
Note C - Investment Securities
Note C - Investment Securities | 12 Months Ended |
Sep. 24, 2016 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE C – INVESTMENT SECURITIES We have classified our investment securities as marketable securities held to maturity and available for sale. The FASB defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the FASB has established three levels of inputs that may be used to measure fair value: Level 1 Observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2 Observable inputs, other than Level 1 inputs in active markets, that are observable either directly or indirectly; and Level 3 Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions. Our marketable securities held to maturity and available for sale consist of investments in mutual funds, preferred stock and corporate bonds. The fair values of mutual funds are based on quoted market prices in active markets and are classified within Level 1 of the fair value hierarchy. The fair values of preferred stock and corporate bonds are based on quoted prices for identical or similar instruments in markets that are not active. As a result, preferred stock and corporate bonds are classified within Level 2 of the fair value hierarchy. The amortized cost, unrealized gains and losses, and fair market values of our investment securities held to maturity at September 24, 2016 are summarized as follows: Gross Gross Fair Amortized Unrealized Unrealized Market Cost Gains Losses Value (in thousands) Corporate Bonds $ 103,311 $ 734 $ 138 $ 103,907 Certificates of Deposit 960 11 - 971 Total investment securities held to maturity $ 104,271 $ 745 $ 138 $ 104,878 The amortized cost, unrealized gains and losses, and fair market values of our investment securities available for sale at September 24, 2016 are summarized as follows: Gross Gross Fair Amortized Unrealized Unrealized Market Cost Gains Losses Value (in thousands) Mutual Funds $ 13,003 $ - $ 520 $ 12,483 Preferred Stock 16,791 273 82 16,982 Total investment securities available for sale $ 29,794 $ 273 $ 602 $ 29,465 The mutual funds seek current income with an emphasis on maintaining low volatility and overall moderate duration. We have reduced our investments in mutual funds over the past year to $13 million at September 2016 from $19 million at September 2015 and $128 million at September 2014. The remaining unrealized losses of $520,000 are spread over 4 funds with total fair market value of $12.5 million. The remaining mutual funds presently generate income of 4.9 % per year. We have invested $17 million in Fixed-to-Floating Perpetual Preferred Stock which generates fixed income to call dates in 2018, 2019 and 2025 and then income is based on a spread above LIBOR if the securities are not called. The annual yield from these investments is presently 5.5%, of which 70% is not subject to income tax. The mutual funds and the Fixed-to-Floating Perpetual Preferred Stock investment securities do not have contractual maturities; however, we classify them as long term assets as it is our intent to hold them for a period of over one year, although we may sell some or all of them depending on presently unanticipated needs for liquidity or market conditions. W e have invested $103 million in corporate bonds which generate fixed income to maturity dates in 2017 through 2021, with $67 million maturing prior to the end of our fiscal year 2018. The bonds presently generate income of about 2.2% per year. Our expectation is that we will hold the corporate bonds to their maturity dates and redeem them at our amortized cost. The amortized cost, unrealized gains and losses, and fair market values of our investment securities held to maturity at September 26, 2015 are summarized as follows: Gross Gross Fair Amortized Unrealized Unrealized Market Cost Gains Losses Value (in thousands) Corporate Bonds $ 66,660 $ 15 $ 663 $ 66,012 Total investment securities held to maturity $ 66,660 $ 15 $ 663 $ 66,012 The amortized cost, unrealized gains and losses, and fair market values of our investment securities available for sale at September 26, 2015 are summarized as follows: Gross Gross Fair Amortized Unrealized Unrealized Market Cost Gains Losses Value (in thousands) Mutual Funds $ 20,041 $ - $ 827 $ 19,214 Preferred Stock 20,473 114 163 20,424 Total investment securities available for sale $ 40,514 $ 114 $ 990 $ 39,638 The amortized cost and fair value of the Company’s held to maturity securities by contractual maturity at September 24, 2016 and September 26, 2015 are summarized as follows: September 24, 2016 September 26, 2015 Fair Fair Amortized Market Amortized Market Cost Value Cost Value (in thousands) Due in one year or less $ 13,539 $ 13,552 $ - $ - Due after one year through five years 90,732 91,326 63,522 63,010 Due after five years through ten years - - 3,138 3,002 Total held to maturity securities $ 104,271 $ 104,878 $ 66,660 $ 66,012 Less current portion 13,539 13,552 - - Long term held to maturity securities $ 90,732 $ 91,326 $ 66,660 $ 66,012 Proceeds from the sale and redemption of marketable securities were $13,224,000, $110,117,000 and $7,245,000 in the years ended September 24, 2016, September 26, 2015 and September 27, 2014, respectively; with losses of $661,000, $4,319,000 and $361,000 recorded in 2016, 2015 and 2014, respectively. We use the specific identification method to determine the cost of securities sold. |
Note D - Inventories
Note D - Inventories | 12 Months Ended |
Sep. 24, 2016 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE D – INVENTORIES Inventories consist of the following: September 24, September 26, 2016 2015 (in thousands) Finished goods $ 38,285 $ 34,258 Raw materials 18,223 17,000 Packaging materials 6,799 5,949 Equipment parts and other 25,377 25,450 Total Inventories $ 88,684 $ 82,657 |
Note E - Property, Plant and Eq
Note E - Property, Plant and Equipment | 12 Months Ended |
Sep. 24, 2016 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE E – PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consist of the following: September 24, September 26, Estimated 2016 2015 Useful Lives (in years) (in thousands) Land $ 2,512 $ 2,496 - Buildings 26,741 26,741 15 - 39.5 Plant machinery and equipment 227,614 210,728 5 - 20 Marketing equipment 278,299 266,047 5 - 7 Transportation equipment 7,637 6,866 5 Office equipment 22,136 20,586 3 - 5 Improvements 34,750 28,725 5 - 20 Construction in Progress 5,356 9,486 - Total property, plant and equipment $ 605,045 $ 571,675 Depreciation expense was $34,536,000, $32,356,000 and $31,660,000 for fiscal years 2016, 2015 and 2014, respectively . |
Note F - Goodwill and Intangibl
Note F - Goodwill and Intangible Assets | 12 Months Ended |
Sep. 24, 2016 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE F – GOODWILL AND INTANGIBLE ASSETS Our three reporting units, which are also reportable segments, are Food Service, Retail Supermarket and Frozen Beverages. The carrying amount of acquired intangible assets for the reportable segments are as follows: September 24, 2016 September 26, 2015 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization (in thousands) FOOD SERVICE Indefinite lived intangible assets Trade Names $ 14,150 $ - $ 13,072 $ - Amortized intangible assets Non compete agreements 592 563 592 538 Customer relationships 40,797 37,201 40,797 33,584 License and rights 3,606 2,890 3,606 2,802 TOTAL FOOD SERVICE $ 59,145 $ 40,654 $ 58,067 $ 36,924 RETAIL SUPERMARKETS Indefinite lived intangible assets Trade Names $ 7,206 $ - $ 7,206 $ - Amortized Intangible Assets Non compete agreements 160 160 160 114 Customer relationships 7,979 2,021 7,979 1,220 TOTAL RETAIL SUPERMARKETS $ 15,345 $ 2,181 $ 15,345 $ 1,334 FROZEN BEVERAGES Indefinite lived intangible assets Trade Names $ 9,315 $ - $ 9,315 $ - Amortized intangible assets Non compete agreements 198 198 198 198 Customer relationships 6,678 6,506 6,678 6,075 Licenses and rights 1,601 924 1,601 854 TOTAL FROZEN BEVERAGES $ 17,792 $ 7,628 $ 17,792 $ 7,127 CONSOLIDATED $ 92,282 $ 50,463 $ 91,204 $ 45,385 The gross carrying amount of intangible assets is determined by applying a discounted cash flow model to the future sales and earnings associated with each intangible asset or is set by contract cost. The amortization period used for definite lived intangible assets is set by contract period or by the period over which the bulk of the discounted cash flow is expected to be generated. We currently believe that we will receive the benefit from the use of the trade names classified as indefinite lived intangible assets indefinitely and they are therefore not amortized. Licenses and rights, customer relationships and non compete agreements are being amortized by the straight-line method over periods ranging from 3 to 20 years and amortization expense is reflected throughout operating expenses. Amortizing intangibles are reviewed for impairment as events or changes in circumstances occur indicating that the carrying amount of Intangible assets of $849,000 were acquired in the food service segment in the New York Pretzel acquisition in the three months ended December 28, 2013 and intangible assets of $11,060,000 were acquired in the retail supermarket segment in the PHILLY SWIRL acquisition in the three months ended June 28, 2014. Intangible assets of $200,000 were acquired in the frozen beverages segment in fiscal year 2015. Intangible assets of $1,078,000 were acquired in fiscal year 2016 in the food service segment due to the purchase of the HEARTBAR brand. Aggregate amortization expense of intangible assets for the fiscal years 2016, 2015 and 2014 was $5,078,000, $5,370,000 and $4,932,000, respectively. Estimated amortization expense for the next five fiscal years is approximately $2,600,000 in 2017, $1,800,000 in 2018, $1,700,000 in 2019, $1,400,000 in 2020 and $1,000,000 in 2021. The weighted average amortization period of the intangible assets is 10.6 years. Goodwill The carrying amounts of goodwill for the reportable segments are as follows: Food Retail Frozen Service Supermarkets Beverages Total (in thousands) Balance at September 24, 2016 $ 46,832 $ 3,670 $ 35,940 $ 86,442 Balance at September 26, 2015 $ 46,832 $ 3,670 $ 35,940 $ 86,442 The carrying value of goodwill is determined based on the excess of the purchase price of acquisitions over the estimated fair value of tangible and intangible net assets. Goodwill is not amortized but is evaluated annually at year end by management for impairment. Our impairment analysis for 2016, 2015 and 2014 was based on a combination of the income approach, which estimates the fair value of discounted cash flows, and the market approach, which estimates the fair value based on comparable market prices. Under the income approach the Company used a discounted cash flow which requires Level 3 inputs such as: annual growth rates, discount rates based upon the weighted average cost of capital and terminal values based upon current stock market multiples. There were no impairment charges in 2016, 2015 or 2014. Goodwill of $7,716,000 was acquired in the New York Pretzel acquisition in the three months ended December 28, 2013, all of which was allocated to the food service segment. Goodwill of $1,826,000 was acquired in the PHILLY SWIRL acquisition in the three months ended June 28,2014, all of which was allocated to the retail supermarket segment. No goodwill was acquired in fiscal years 2015 and 2016. |
Note G - Long-term Debt
Note G - Long-term Debt | 12 Months Ended |
Sep. 24, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | NOTE G – LONG-TERM DEBT In November 2016, we entered into an amended and restated loan agreement with our existing banks which provides for up to a $50,000,000 revolving credit facility repayable in November 2021, with the availability of repayments without penalty. Interest is calculated based on LIBOR plus an applicable margin. The agreement contains financial covenants and requires commitment fees in accordance with standard banking practice. As of September 24, 2016 and September 26, 2015, there were no outstanding balances under the facility. We were in compliance with the financial covenants at September 24, 2016. |
Note H - Obligations Under Capi
Note H - Obligations Under Capital Leases | 12 Months Ended |
Sep. 24, 2016 | |
Notes to Financial Statements | |
Capital Leases in Financial Statements of Lessee Disclosure [Text Block] | NOTE H – OBLIGATIONS UNDER CAPITAL LEASES The following is a schedule by years of future minimum lease payments under capital leases: (in thousands) 2017 $ 365 2018 338 2019 300 2020 262 2021 266 2022 and thereafter 69 Total minimum capital lease payments $ 1,600 |
Note I - Income Taxes
Note I - Income Taxes | 12 Months Ended |
Sep. 24, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE I – INCOME TAXES Income tax expense (benefit) is as follows: Fiscal year ended September 24, September 26, September 27, 2016 2015 2014 (in thousands) Current U.S. Federal $ 25,126 $ 33,348 $ 31,506 Foreign 2,433 2,260 2,008 State 5,622 6,294 6,693 Total current expense 33,181 41,902 40,207 Deferred U.S. Federal $ 6,444 $ (109 ) $ (217 ) Foreign (145 ) (34 ) (58 ) State 1,364 (23 ) (540 ) Total deferred expense (benefit) 7,663 (166 ) (815 ) Total expense $ 40,844 $ 41,736 $ 39,392 The change in deferred taxes for the year ended September 27, 2014 does not equal deferred tax expense in the amount of $823,000 as a result of purchase accounting related to the Philly Swirl acquisition . The provisions for income taxes differ from the amounts computed by applying the statutory federal income tax rate of approximately 35% to earnings before income taxes for the following reasons: Fiscal year ended September 24, September 26, September 27, 2016 2015 2014 (in thousands) Income taxes at federal statutory rates $ 40,887 $ 39,172 $ 38,922 Increase (decrease) in taxes resulting from: State income taxes, net of federal income tax benefit 4,541 4,196 4,281 Domestic production activities deduction (2,100 ) (2,100 ) (2,100 ) Increase (reduction) in gross unrecognized tax benefits 20 39 (161 ) Increase in federal valuation allowance 240 1,366 - Share based compensation (1,109 ) 308 437 Other, net (1,635 ) (1,245 ) (1,987 ) Income tax expense $ 40,844 $ 41,736 $ 39,392 Deferred tax assets and liabilities consist of the following: September 24, September 26, 2016 2015 (in thousands) Deferred tax assets Vacation accrual $ 1,646 $ 1,600 Capital loss carry forwards 1,674 1,434 Insurance accrual 3,317 3,385 Deferred income 112 63 Allowances 1,514 927 Inventory capitalization 954 738 Share-based compensation 1,253 1,480 Net Operating Loss 1,691 1,823 Total deferred tax assets 12,161 11,450 Valuation allowance (1,674 ) (1,434 ) Total deferred tax assets, net 10,487 10,016 Deferred tax liabilities Amortization of goodwill and other intangible assets 27,358 25,791 Depreciation of property and equipment 31,315 24,748 Total deferred tax liabilities 58,673 50,539 Total deferred tax liabilities, net $ 48,186 $ 40,523 As of September 24, 2016, we have federal and state capital loss carry forwards of approximately $4.6 million from the sale of marketable securities in fiscal years 2015 and 2016. These carry forwards will expire in 2020, 2021 and 2022. As we have no foreseeable capital gains that would allow us to use this asset, we have recorded a valuation allowance for the full amount of this deferred asset. As of September 24, 2016, we have a federal net operating loss carry forward of approximately $5 million from the PHILLY SWIRL acquisition. These carry forwards are subject to an annual limitation under Code Section 382 of approximately $378,000 and will expire in 2033. We have determined there are no limitations to the total use of this asset and accordingly, have not recorded a valuation allowance for this deferred tax asset. We have undistributed earnings of our Mexican and Canadian subsidiaries that are considered to be indefinitely reinvested and accordingly no provision for US federal and state income taxes has been provided thereon. |
Note J - Commitments
Note J - Commitments | 12 Months Ended |
Sep. 24, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE J - COMMITMENTS 1. Lease Commitments The following is a summary of approximate future minimum rental commitments for non-cancelable operating leases with terms of more than one year as of September 24, 2016: Plants and Offices Equipment Total (in thousands) 2017 $ 6,472 $ 6,879 $ 13,351 2018 5,911 5,626 11,537 2019 5,305 4,292 9,597 2020 4,537 2,365 6,902 2021 3,830 1,012 4,842 2022 and thereafter 18,984 262 19,246 Total minimal rental commitments $ 45,039 $ 20,436 $ 65,475 Total rent expense was $17,481,000, $16,448,000 and $15,163,000 for fiscal years 2016, 2015 and 2014, respectively. 2. Other Commitments We are a party to litigation which has arisen in the normal course of business which management currently believes will not have a material adverse effect on our financial condition or results of operations. We self-insure, up to loss limits, certain insurable risks such as worker’s compensation and automobile liability claims. Accruals for claims under our self-insurance program are recorded on a claims incurred basis. Our total recorded liability for all years’ claims incurred but not yet paid was $8,200,000 and $8,200,000 at September 24, 2016 and September 26, 2015, respectively. In connection with certain self-insurance agreements, we customarily enter into letters of credit arrangements with our insurers. At September 24, 2016 and September 26, 2015, we had outstanding letters of credit totaling $8,675,000 and $9,075,000, respectively. |
Note K - Capital Stock
Note K - Capital Stock | 12 Months Ended |
Sep. 24, 2016 | |
Notes to Financial Statements | |
Repurchase Agreements, Resale Agreements, Securities Borrowed, and Securities Loaned Disclosure [Text Block] | NOTE K - CAPITAL STOCK In our fiscal year ended September 26, 2015, we purchased and retired 72,698 shares of our common stock at a cost of $8,011,118. In our fiscal year ended September 27, 2014, we purchased and retired 81,685 shares of our common stock at a cost of $7,504,729. |
Note L - Stock Options
Note L - Stock Options | 12 Months Ended |
Sep. 24, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE L – STOCK OPTIONS We have a Stock Option Plan (the “Plan”). Pursuant to the Plan, stock options may be granted to officers and our key employees which qualify as incentive stock options as well as stock options which are nonqualified. The exercise price of incentive stock options is at least the fair market value of the common stock on the date of grant. The exercise price for nonqualified options is determined by a committee of the Board of Directors. The options are generally exercisable after three years and expire no later than ten years from date of grant. There were 800,000 shares reserved under the Plan; options for 174,875 shares remain unissued as of September 24, 2016. There are options that were issued under an option plan that has since expired that are still outstanding. We have an Employee Stock Purchase Plan (“ESPP”) whereby employees purchase stock by making contributions through payroll deductions for six month periods. The purchase price of the stock is 85% of the lower of the market price of the stock at the beginning of the six-month period or the end of the six-month period. In fiscal years 2016, 2015 and 2014 employees purchased 13,747, 13,648 and 15,650 shares at average purchase prices of $96.00, $86.01 and $70.40, respectively. ESPP expense of $305,000, $328,000 and $329,000 was recognized for fiscal years 2016, 2015 and 2014, respectively. A summary of the status of our stock option plans as of fiscal years 2016, 2015 and 2014 and the changes during the years ended on those dates is represented below: Incentive Stock Options Nonqualified Stock Options Weighted- Weighted- Stock Average Stock Average Options Exercise Options Exercise Outstanding Price Outstanding Price Balance, September 29, 2013 259,852 $ 51.17 231,247 $ 44.77 Granted 83,440 82.07 38,132 88.26 Exercised (39,097 ) 42.42 (20,000 ) 20.43 Canceled (8,550 ) 58.68 - - Balance, September 27, 2014 295,645 60.83 249,379 53.38 Granted 114,488 100.94 55,152 106.96 Exercised (70,792 ) 47.30 (6,590 ) 51.14 Canceled (6,989 ) 84.13 - - Balance, September 26, 2015 332,352 77.04 297,941 63.34 Granted 120,450 108.69 58,720 112.35 Exercised (86,223 ) 53.67 (44,777 ) 42.53 Canceled (10,792 ) 97.07 - - Balance, September 24, 2016 355,787 $ 92.81 311,884 $ 75.56 Exercisable Options September 24, 2016 54,640 $ 57.98 139,880 $ 43.52 The weighted-average fair value of incentive options granted during fiscal years ended September 24, 2016, September 26, 2015 and September 27, 2014 was $13.94, $15.27 and $15.24, respectively. The weighted-average fair value of non-qualified stock options granted during the fiscal years ended September 24, 2016, September 26, 2015 and September 27, 2014 was $19.95, $21.90 and $17.34, respectively. The total intrinsic value of stock options exercised was $8.4 million, $4.8 million and $3.4 million in fiscal years 2016, 2015 and 2014, respectively. The total cash received from these option exercises was $5.3 million, $3.1 million and $1.5 million in fiscal years 2016, 2015 and 2014, respectively; and the actual tax benefit realized from the tax deductions from these option exercises was $1.6 million, $874,000 and $1.0 million in fiscal years 2016, 2015 and 2014, respectively. The following table summarizes information about incentive stock options outstanding as of September 24, 2016: Options Outstanding Options Exercisable Number Weighted- Number Outstanding Average Weighted- Exercisable Weighted- at Remaining Average at Average Range of September 24, Contractual Exercise September 24, Exercise Exercise Prices 2016 Life Price 2016 Price $57.15-$81.67 129,733 1.6 $ 71.68 54,640 $ 57.98 $89.37-$117.65 226,054 3.9 104.94 - - Total options 355,787 3.1 92.81 54,640 57.98 The following table summarizes information about nonqualified stock options outstanding as of September 24, 2016: Options Outstanding Options Exercisable Number Weighted- Number Outstanding Average Weighted- Exercisable Weighted- at Remaining Average at Average Range of September 24, Contractual Exercise September 24, Exercise Exercise Prices 2016 Life Price 2016 Price $31.10-$41.75 80,000 1.8 $ 35.46 80,000 $ 35.46 $47.59-$57.99 59,880 4.0 54.30 59,880 54.30 $80.79-$119.44 172,004 5.9 101.61 - - Total options 311,884 4.4 75.56 139,880 43.52 |
Note M - 401(k) Profit-sharing
Note M - 401(k) Profit-sharing Plan | 12 Months Ended |
Sep. 24, 2016 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | NOTE M – 401(k) PROFIT-SHARING PLAN We maintain a 401(k) profit-sharing plan for our employees. Under this plan, we may make discretionary profit-sharing and matching 401(k) contributions. Contributions of $1,936,000, $1,836,000 and $1,686,000 were made in fiscal years 2016, 2015 and 2014, respectively. |
Note N - Cash Flow Information
Note N - Cash Flow Information | 12 Months Ended |
Sep. 24, 2016 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | NOTE N – CASH FLOW INFORMATION The following is supplemental cash flow information: Fiscal Year Ended September 24, September 26, September 27, 2016 2015 2014 (in thousands) Cash paid for: Interest $ 57 $ 53 $ 41 Income taxes 41,064 43,867 41,318 Non cash items: Capital leases $ 486 $ 1,191 $ 499 |
Note O - Segment Reporting
Note O - Segment Reporting | 12 Months Ended |
Sep. 24, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE O – SEGMENT REPORTING We principally sell our products to the food service and retail supermarket industries. Sales and results of our frozen beverages business are monitored separately from the balance of our food service business because of different distribution and capital requirements. We maintain separate and discrete financial information for the three operating segments mentioned above which is available to our Chief Operating Decision Makers. We have applied no aggregation criteria to any of these operating segments in order to determine reportable segments. Our three reportable segments are Food Service, Retail Supermarkets and Frozen Beverages. All inter-segment net sales and expenses have been eliminated in computing net sales and operating income. These segments are described below. Food Service The primary products sold by the food service segment are soft pretzels, frozen juice treats and desserts, churros, dough enrobed handheld products and baked goods. Our customers in the food service segment include snack bars and food stands in chain, department and discount stores; malls and shopping centers; casual dining restaurants; fast food outlets; stadiums and sports arenas; leisure and theme parks; convenience stores; movie theatres; warehouse club stores; schools, colleges and other institutions. Within the food service industry, our products are purchased by the consumer primarily for consumption at the point-of-sale. Retail Supermarkets The primary products sold to the retail supermarket channel are soft pretzel products – including SUPERPRETZEL, frozen juice treats and desserts including LUIGI’S Real Italian Ice, MINUTE MAID Juice Bars and Soft Frozen Lemonade, WHOLE FRUIT frozen fruit bars and sorbet, PHILLY SWIRL cups and sticks, ICEE Squeeze-Up Tubes and dough enrobed handheld products including PATIO burritos. Within the retail supermarket channel, our frozen and prepackaged products are purchased by the consumer for consumption at home. Frozen Beverages We sell frozen beverages to the food service industry primarily under the names ICEE, SLUSH PUPPIE and PARROT ICE in the United States, Mexico and Canada. We also provide repair and maintenance service to customers for customers’ owned equipment. The Chief Operating Decision Maker for Food Service and Retail Supermarkets and the Chief Operating Decision Maker for Frozen Beverages monthly review detailed operating income statements and sales reports in order to assess performance and allocate resources to each individual segment. Sales is considered to be the one and only key variable monitored by the Chief Operating Decision Makers and management when determining each segment’s and the company’s financial condition and operating performance. In addition, the Chief Operating Decision Makers review and evaluate depreciation, capital spending and assets of each segment on a quarterly basis to monitor cash flow and asset needs of each segment. Information regarding the operations in these three reportable segments is as follows: Fiscal year ended September 24, September 26, September 27, 2016 2015 2014 (52 weeks) (52 weeks) (52 weeks) (in thousands) Sales to External Customers: Food Service Soft pretzels $ 170,155 $ 168,970 $ 164,680 Frozen juices and ices 51,798 54,454 53,888 Churros 57,318 56,602 55,929 Handhelds 27,427 21,817 24,248 Bakery 294,518 301,135 281,556 Other 20,313 13,657 11,597 Total Food Service $ 621,529 $ 616,635 $ 591,898 Retail Supermarket Soft pretzels $ 33,279 $ 35,727 $ 34,830 Frozen juices and ices 68,924 72,174 59,404 Handhelds 15,347 18,957 21,354 Coupon redemption (4,430 ) (4,725 ) (3,807 ) Other 4,469 1,244 863 Total Retail Supermarket $ 117,589 $ 123,377 $ 112,644 Frozen Beverages Beverages $ 150,118 $ 142,705 $ 133,283 Repair and maintenance service 71,123 65,765 59,805 Machines sales 31,155 26,413 20,224 Other 1,267 1,361 1,597 Total Frozen Beverages $ 253,663 $ 236,244 $ 214,909 Consolidated Sales $ 992,781 $ 976,256 $ 919,451 Depreciation and Amortization: Food Service $ 22,912 $ 21,289 $ 20,882 Retail Supermarket 1,031 1,132 492 Frozen Beverages 16,180 15,850 15,719 Total Depreciation and Amortization $ 40,123 $ 38,271 $ 37,093 Operating Income: Food Service $ 76,539 $ 75,286 $ 73,731 Retail Supermarket 9,618 11,020 11,201 Frozen Beverages 26,653 24,582 21,916 Total Operating Income $ 112,810 $ 110,888 $ 106,848 Capital Expenditures: Food Service $ 24,759 $ 28,228 $ 21,594 Retail Supermarket 369 112 26 Frozen Beverages 23,581 20,301 17,765 Total Capital Expenditures $ 48,709 $ 48,641 $ 39,385 Assets: Food Service $ 589,854 $ 543,851 $ 516,916 Retail Supermarket 22,090 24,209 25,917 Frozen Beverages 178,543 171,609 161,940 Total Assets $ 790,487 $ 739,669 $ 704,773 |
Note P - Accumulated Other Comp
Note P - Accumulated Other Comprehensive Loss | 12 Months Ended |
Sep. 24, 2016 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | NOTE P - ACCUMULATED OTHER COMPREHENSIVE LOSS Changes to the components of accumulated other comprehensive loss are as follows: Fiscal Year Ended September 24, 2016 (in thousands) Unrealized Foreign Currency Holding Loss on Translation Marketable Adjustments Securities Total Beginning Balance $ (10,021 ) $ (876 ) $ (10,897 ) Other comprehensive loss before reclassifications (3,065 ) (8 ) (3,073 ) Amounts reclassified from accumulated other comprehensive income - 555 555 Ending Balance $ (13,086 ) $ (329 ) $ (13,415 ) Fiscal Year Ended September 26, 2015 (in thousands) Foreign Currency Unrealized Translation Marketable Adjustments Securities Total Beginning Balance $ (4,632 ) $ (1,356 ) $ (5,988 ) Other comprehensive loss before reclassifications (5,389 ) (2,607 ) (7,996 ) Amounts reclassified from accumulated other comprehensive income - 3,087 3,087 Ending Balance $ (10,021 ) $ (876 ) $ (10,897 ) |
Note Q - Quarterly Financial Da
Note Q - Quarterly Financial Data (Unaudited) | 12 Months Ended |
Sep. 24, 2016 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | J & J SNACK FOODS CORP. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) NOTE Q - QUARTERLY FINANCIAL DATA (UNAUDITED) Fiscal Year Ended September 24, 2016 Net Earnings Per Gross Net Diluted Net Sales Profit Earnings Share(1) (in thousands, except per share information) 1st Quarter $ 222,850 $ 63,835 $ 12,978 $ 0.69 2nd Quarter 229,710 68,749 15,588 0.83 3rd Quarter 277,981 92,086 26,791 1.43 4th Quarter 262,240 79,797 20,618 1.10 Total $ 992,781 $ 304,467 $ 75,975 $ 4.05 Fiscal Year Ended September 26, 2015 Net Earnings Per Gross Net Diluted Net Sales Profit Earnings Share(1) (in thousands, except per share information) 1st Quarter $ 212,752 $ 61,101 $ 11,256 $ 0.60 2nd Quarter 225,008 66,950 14,637 0.78 3rd Quarter 278,724 90,396 24,462 1.30 4th Quarter 259,772 82,443 19,828 1.05 Total $ 976,256 $ 300,890 $ 70,183 $ 3.73 (1) Total of quarterly amounts do not necessarily agree to the annual report amounts due to separate quarterly calculations of weighted average shares outstanding. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Sep. 24, 2016 | |
Notes to Financial Statements | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS Opening Charged to Closing Year Description Balance Expense Deductions Balance 2016 Allowance for doubtful accounts $ 304,000 $ 525,000 $ 258,000 (1) $ 571,000 2015 Allowance for doubtful accounts $ 450,000 $ 310,000 $ 456,000 (1) $ 304,000 2014 Allowance for doubtful accounts $ 854,000 $ 161,000 $ 565,000 (1) $ 450,000 (1) Write-offs of uncollectible accounts receivable. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 24, 2016 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | 1. Principles of Consolidation The consolidated financial statements were prepared in accordance with U.S. GAAP. These financial statements include the accounts of J & J Snack Foods Corp. and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in the consolidated financial statements. |
Revenue Recognition, Policy [Policy Text Block] | 2. Revenue Recognition We recognize revenue from our products when the products are shipped to our customers. Repair and maintenance equipment service revenue is recorded when it is performed provided the customer terms are that the customer is to be charged on a time and material basis or on a straight-line basis over the term of the contract when the customer has signed a service contract. Revenue is recognized only where persuasive evidence of an arrangement exists, our price is fixed or estimable and collectability is reasonably assured. We record offsets to revenue for allowances, end-user pricing adjustments, trade spending, coupon redemption costs and returned product. Customers generally do not have the right to return product unless it is damaged or defective. Our recorded liability for allowances, end-user pricing adjustments and trade spending was approximately $14.3 million at September 24, 2016 and $11.7 million at September 26, 2015. All amounts billed to customers related to shipping and handling are classified as revenues. Our product costs include amounts for shipping and handling, therefore, we charge our customers shipping and handling fees at the time the products are shipped or when services are performed. The cost of shipping products to the customer is recognized at the time the products are shipped to the customer and our policy is to classify them as Distribution expenses. The cost of shipping products to the customer classified as Distribution expenses was $73,114,000, $74,158,000 and $71,159,000 for the fiscal years ended 2016, 2015 and 2014, respectively. During the years ended September 24, 2016, September 26, 2015 and September 27, 2014, we sold $24,664,000, $25,536,000 and $22,826,000, respectively, of repair and maintenance service contracts in our frozen beverage business. At September 24, 2016 and September 26, 2015, deferred income on repair and maintenance service contracts was $1,671,000 and $1,579,000, respectively, of which $145,000 and $70,000 is included in other long-term liabilities as of September 24, 2016 and September 26, 2015, respectively and the balance is reflected as short-term and included in accrued liabilities on the consolidated balance sheet. Repair and maintenance service contract income of $24,571,000, $25,534,000 and $22,748,000 was recognized for the fiscal years ended 2016, 2015 and 2014, respectively. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | 3. Foreign Currency Assets and liabilities in foreign currencies are translated into U.S. dollars at the rate of exchange prevailing at the balance sheet date. Revenues and expenses are translated at the average rate of exchange for the period. The cumulative translation adjustment is recorded as a separate component of stockholders’ equity and changes to such are included in comprehensive income. |
Use of Estimates, Policy [Policy Text Block] | 4. Use of Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents, Policy [Policy Text Block] | 5. Cash Equivalents Cash equivalents are short-term, highly liquid investments with original maturities of three months or less. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | 6. Concentrations and related risks We maintain cash balances at financial institutions located in various states. We have cash balances at two banks totalling approximately $100 million that is in excess of FDIC insurance of $250,000 per bank. Financial instruments that could potentially subject us to concentrations of credit risk are trade accounts receivable; however, such risks are limited due to the large number of customers comprising our customer base and their dispersion across geographic regions. We usually have approximately 15 customers with accounts receivable balances of between $1 million and $10 million. We have several large customers that account for a significant portion of our sales. Our top ten customers accounted for 42%, 43% and 43% of our sales during fiscal years 2016, 2015 and 2014, respectively, with our largest customer accounting for 8% of our sales in 2016, 8% of our sales in 2015 and 8% of our sales in 2014. Three of the ten customers are food distributors who sell our product to many end users. About 30% of our employees are covered by collective bargaining agreements. None of our vendors supplied more than 10% of our ingredients and packaging in 2016, 2015 or 2014. The majority of our accounts receivable are due from trade customers. Credit is extended based on evaluation of our customers’ financial condition and collateral is not required. Accounts receivable payment terms vary and are stated in the financial statements at amounts due from customers net of an allowance for doubtful accounts. At September 24, 2016 and September 26, 2015, our accounts receivables were $98,325,000 and $102,649,000 net of an allowance for doubtful accounts of $571,000 and $304,000. Accounts receivable outstanding longer than the payment terms are considered past due. We determine our allowance by considering a number of factors, including the length of time trade accounts receivable are past due, our previous loss history, customers’ current ability to pay their obligations to us, and the condition of the general economy and the industry as a whole. We write off accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for doubtful accounts. |
Inventory, Policy [Policy Text Block] | 7. Inventories Inventories are valued at the lower of cost (determined by the first-in, first-out method) or market. We recognize abnormal amounts of idle facilities, freight, handling costs, and spoilage as charges of the current period. Additionally, we allocate fixed production overhead to inventories based on the normal capacity of our production facilities. We calculate normal capacity as the production expected to be achieved over a number of periods or seasons under normal circumstances, taking into account the loss of capacity resulting from planned maintenance. This requires us to use judgment to determine when production is outside the range of expected variation in production (either abnormally low or abnormally high). In periods of abnormally low production (for example, periods in which there is significantly lower demand, labor and material shortages exist, or there is unplanned equipment downtime) the amount of fixed overhead allocated to each unit of production is not increased. However, in periods of abnormally high production the amount of fixed overhead allocated to each unit of production is decreased to assure inventories are not measured above cost. |
Marketable Securities, Policy [Policy Text Block] | 8. Investment Securities We classify our investment securities in one of three categories: held to maturity, trading, or available for sale. Our investment portfolio at September 24, 2016, consists of investments classified as held to maturity and available for sale. The securities that we have the positive intent and ability to hold to maturity are classified as held to maturity and are stated at amortized cost. Investments classified as available for sale are reported at fair market value with unrealized gains and losses related to the changes in fair value of the securities recognized in accumulated other comprehensive income (loss). The mutual funds and preferred stock in our available for sale portfolio do not have contractual maturities; however, we classify them as long term assets as it is our intent to hold them for a period of over one year, although we may sell some or all of them depending on presently unanticipated needs for liquidity or market conditions. See Note C for further information on our holdings of investment securities. |
Depreciation, Depletion, and Amortization [Policy Text Block] | 9. Depreciation and Amortization Depreciation of equipment and buildings is provided for by the straight-line method over the assets’ estimated useful lives. We review our equipment and buildings to ensure that they provide economic benefit and are not impaired. Amortization of improvements is provided for by the straight-line method over the term of the lease or the assets’ estimated useful lives, whichever is shorter. Licenses and rights, customer relationships and non-compete agreements are being amortized by the straight-line method over periods ranging from 3 to 20 years and amortization expense is reflected throughout operating expenses. Long-lived assets, including fixed assets and amortizing intangibles, are reviewed for impairment as events or changes in circumstances occur indicating that the carrying amount of |
Fair Value of Financial Instruments, Policy [Policy Text Block] | 10. Fair Value of Financial Instruments The carrying value of our short-term financial instruments, such as accounts receivables and accounts payable, approximate their fair values, based on the short-term maturities of these instruments. |
Income Tax, Policy [Policy Text Block] | 11. Income Taxes We account for our income taxes under the liability method. Under the liability method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse. Deferred tax expense is the result of changes in deferred tax assets and liabilities. Additionally, we recognize a liability for income taxes and associated penalties and interest for tax positions taken or expected to be taken in a tax return which are more likely than not to be overturned by taxing authorities (“uncertain tax positions”). We have not recognized a tax benefit in our financial statements for these uncertain tax positions. As of September 24, 2016 and September 26, 2015, the total amount of gross unrecognized tax benefits is $354,000 and $334,000; respectively, all of which would impact our effective tax rate over time, if recognized. We recognize interest and penalties related to income tax matters as a part of the provision for income taxes. We had $219,000 of accrued interest and penalties as of September 24, 2016 and $199,000 as of September 26, 2015. We did not recognize any penalties and interest resulting from tax settlements in the years ended September 24, 2016 and September 26, 2015. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: (in thousands) Balance at September 26, 2015 $ 334 Additions based on tax positions related to the current year 20 Reductions for tax positions of prior years - Settlements - Balance at September 24, 2016 $ 354 In addition to our federal tax return and tax returns for Mexico and Canada, we file tax returns in all states that have a corporate income tax. Virtually all the returns noted above are open for examination for three to four years. |
Earnings Per Share, Policy [Policy Text Block] | 12. Earnings Per Common Share Basic earnings per common share (EPS) excludes dilution and is computed by dividing income available to common shareholders by the weighted average common shares outstanding during the period. Diluted EPS takes into consideration the potential dilution that could occur if securities (stock options) or other contracts to issue common stock were exercised and converted into common stock. Our calculation of EPS is as follows: Fiscal Year Ended September 24, 2016 Income Shares Per Share (Numerator) (Denominator) Amount (in thousands, except per share amounts) Earnings Per Basic Share Net Income available to common stockholders $ 75,975 18,649 $ 4.07 Effect of Dilutive Securities Options - 120 (0.02 ) Earnings Per Diluted Share Net Income available to common stockholders plus assumed conversions $ 75,975 18,769 $ 4.05 180,170 anti-dilutive shares have been excluded in the computation of 2016 diluted EPS. Fiscal Year Ended September 26, 2015 Income Shares Per Share (Numerator) (Denominator) Amount (in thousands, except per share amounts) Earnings Per Basic Share Net Income available to common stockholders $ 70,183 18,685 $ 3.76 Effect of Dilutive Securities Options - 134 (0.03 ) Earnings Per Diluted Share Net Income available to common stockholders plus assumed conversions $ 70,183 18,819 $ 3.73 1,500 anti-dilutive shares have been excluded in the computation of 2015 diluted EPS. Fiscal Year Ended September 27, 2014 Income Shares Per Share (Numerator) (Denominator) Amount (in thousands, except per share amounts) Earnings Per Basic Share Net Income available to common stockholders $ 71,814 18,677 $ 3.85 Effect of Dilutive Securities Options - 130 (0.03 ) Earnings Per Diluted Share Net Income available to common stockholders plus assumed conversions $ 71,814 18,807 $ 3.82 No anti-dilutive shares have been excluded in the computation of 2014 diluted EPS. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | 13. Accounting for Stock-Based Compensation At September 24, 2016, the Company has three stock-based employee compensation plans. Share-based compensation was recognized as follows: Fiscal year ended September 24, September 26, September 27, 2016 2015 2014 (in thousands, except per share amounts) Stock options $ 86 $ 1,098 $ 1,262 Stock purchase plan 305 328 329 Stock issued to employees 4 6 17 Total share-based compensation $ 395 $ 1,432 $ 1,608 The above compensation is net of tax benefits $ 1,980 $ 734 $ 468 Income tax benefit related to share-based compensation for the year ended September 26, 2016 includes $885,000 as a result of our early adoption as of our fiscal March 2016 quarter of Accounting Standards Update No 2016-09, Improvements to Employee Share-Based Payment Accounting. Under this new standard, income tax benefit is recognized rather than additional paid in capital upon the exercise of stock options. At September 24, 2016, the Company has unrecognized compensation expense of approximately $3.1 million to be recognized over the next three fiscal years. The fair value of each option grant is estimated on the date of grant using the Black-Scholes options-pricing model with the following weighted average assumptions used for grants in fiscal 2016, 2015 and 2014: expected volatility of 16.7% for fiscal year 2016, expected volatility of 18.4% for fiscal year 2015 and 21.2% for fiscal year 2014: weighted average risk-free interest rates of 1.3%, 1.7% and 1.6%; dividend rate of 1.4%, 1.4% and .9% and expected lives ranging between 5 and 10 years for all years. An expected forfeiture rate of 19% was used for 2016, 19% was used for 2015 and 20% was used for 2014. Expected volatility is based on the historical volatility of the price of our common shares over the past 49 to 55 months for 5 year options and 10 years for 10 year options. We use historical information to estimate expected life and forfeitures within the valuation model. The expected term of awards represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Compensation cost is recognized using a straight-line method over the vesting or service period and is net of estimated forfeitures. |
Advertising Costs, Policy [Policy Text Block] | 14. Advertising Costs Advertising costs are expensed as incurred. Total advertising expense was $4,870,000, $4,290,000 and $3,487,000 for the fiscal years 2016, 2015 and 2014, respectively. |
Derivatives, Hedge Discontinuances [Policy Text Block] | 15. Commodity Price Risk Management Our most significant raw material requirements include flour, packaging, shortening, corn syrup, sugar, juice, cheese, chocolate, and a variety of nuts. We attempt to minimize the effect of future price fluctuations related to the purchase of raw materials primarily through forward purchasing to cover future manufacturing requirements, generally for periods from 1 to 12 months. As of September 24, 2016, we have approximately $75 million of such commitments. Futures contracts are not used in combination with forward purchasing of these raw materials. Our procurement practices are intended to reduce the risk of future price increases, but also may potentially limit the ability to benefit from possible price decreases. Our policy is to recognize estimated losses on purchase commitments when they occur. At each of the last three fiscal year ends, we did not have any material losses on our purchase commitments. |
Research, Development, and Computer Software, Policy [Policy Text Block] | 16. Research and Development Costs Research and development costs are expensed as incurred. Total research and development expense was $525,000, $506,000 and $499,000 for the fiscal years 2016, 2015 and 2014, respectively. |
New Accounting Pronouncements, Policy [Policy Text Block] | 17. Recent Accounting Pronouncements In May 2014, the FASB issued guidance on revenue recognition which says that we should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration which we expect to be entitled in exchange for those goods or services. This guidance is effective for our fiscal year ending September 2019. Early application is permitted. We anticipate that the impact of this guidance on our consolidated financial statements will not be material. In July 2015, the FASB issued guidance which requires an entity to measure inventory at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This guidance will simplify the subsequent measurement of inventory, as current guidance requires an entity to measure inventory at the lower of cost or market. Under current guidance, market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. This guidance is effective for our fiscal year ended September 2018. Early adoption is permitted. The adoption of this guidance in the December quarter did not have a material impact on our consolidated financial statements. In September 2015, the FASB issued guidance on accounting for business combinations which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. This guidance eliminates the requirement to retrospectively account for these adjustments. This guidance is effective for our fiscal year ended September 2018. Early adoption is permitted. This guidance did not impact amounts and disclosures related to previous business combinations; therefore, the adoption of this guidance in the December quarter did not impact our consolidated financial statements. In November 2015, the FASB issued guidance on the balance sheet classification of deferred taxes which eliminates the current requirement to present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet and now requires entities to classify all deferred tax assets and liabilities as noncurrent. This guidance is effective for our fiscal year ended September 2018. Early adoption is permitted. The adoption of this guidance in this Form 10-K did not have a material impact on our financial statements. In January 2016, the FASB issued guidance which requires an entity to measure equity investments at fair value with changes in fair value recognized in net income , to use the price that would be received by a seller when measuring the fair value of financial instruments for disclosure purposes, and which eliminates the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. Under present guidance, changes in fair value of equity investments are recognized in Stockholders’ Equity. This guidance is effective for our fiscal year ended September 2019. Early adoption is not permitted. We anticipate that the adoption of this guidance on our consolidated financial statements will not be material. In February 2016, the FASB issued guidance on lease accounting which requires that an entity recognize most leases on its balance sheet. The guidance retains a dual lease accounting model for purposes of income statement recognition, continuing the distinction between what are currently known as “capital” and “operating” leases for lessees. This guidance is effective for our fiscal year ended September 2020. We anticipate that the impact of this guidance on our financial statements will be material . In March 2016, the FASB issued guidance on share based compensation which requires that an entity recognize all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement as discrete items in the reporting period in which they occur. Under current guidance, excess tax benefits are recognized in additional paid-in capital and tax deficiencies are recognized either as an offset to accumulated excess tax benefits, or in the income statement. This guidance is effective for our fiscal year ended September 2018. Early adoption is permitted. See Note A.13 to these financial statements for a discussion of the impact the adoption of this guidance in our March 2016 quarter had on our consolidated financial statements. |
Reclassification, Policy [Policy Text Block] | 18. Reclassifications Certain prior year financial statement amounts have been reclassified to be consistent with the presentation for the current year. |
Note A - Summary of Significa27
Note A - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 24, 2016 | |
Notes Tables | |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | (in thousands) Balance at September 26, 2015 $ 334 Additions based on tax positions related to the current year 20 Reductions for tax positions of prior years - Settlements - Balance at September 24, 2016 $ 354 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Fiscal Year Ended September 24, 2016 Income Shares Per Share (Numerator) (Denominator) Amount (in thousands, except per share amounts) Earnings Per Basic Share Net Income available to common stockholders $ 75,975 18,649 $ 4.07 Effect of Dilutive Securities Options - 120 (0.02 ) Earnings Per Diluted Share Net Income available to common stockholders plus assumed conversions $ 75,975 18,769 $ 4.05 Fiscal Year Ended September 26, 2015 Income Shares Per Share (Numerator) (Denominator) Amount (in thousands, except per share amounts) Earnings Per Basic Share Net Income available to common stockholders $ 70,183 18,685 $ 3.76 Effect of Dilutive Securities Options - 134 (0.03 ) Earnings Per Diluted Share Net Income available to common stockholders plus assumed conversions $ 70,183 18,819 $ 3.73 Fiscal Year Ended September 27, 2014 Income Shares Per Share (Numerator) (Denominator) Amount (in thousands, except per share amounts) Earnings Per Basic Share Net Income available to common stockholders $ 71,814 18,677 $ 3.85 Effect of Dilutive Securities Options - 130 (0.03 ) Earnings Per Diluted Share Net Income available to common stockholders plus assumed conversions $ 71,814 18,807 $ 3.82 |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Fiscal year ended September 24, September 26, September 27, 2016 2015 2014 (in thousands, except per share amounts) Stock options $ 86 $ 1,098 $ 1,262 Stock purchase plan 305 328 329 Stock issued to employees 4 6 17 Total share-based compensation $ 395 $ 1,432 $ 1,608 The above compensation is net of tax benefits $ 1,980 $ 734 $ 468 |
Note C - Investment Securities
Note C - Investment Securities (Tables) | 12 Months Ended |
Sep. 24, 2016 | |
Notes Tables | |
Unrealized Gain (Loss) on Investments [Table Text Block] | Gross Gross Fair Amortized Unrealized Unrealized Market Cost Gains Losses Value (in thousands) Corporate Bonds $ 103,311 $ 734 $ 138 $ 103,907 Certificates of Deposit 960 11 - 971 Total investment securities held to maturity $ 104,271 $ 745 $ 138 $ 104,878 Gross Gross Fair Amortized Unrealized Unrealized Market Cost Gains Losses Value (in thousands) Mutual Funds $ 13,003 $ - $ 520 $ 12,483 Preferred Stock 16,791 273 82 16,982 Total investment securities available for sale $ 29,794 $ 273 $ 602 $ 29,465 Gross Gross Fair Amortized Unrealized Unrealized Market Cost Gains Losses Value (in thousands) Corporate Bonds $ 66,660 $ 15 $ 663 $ 66,012 Total investment securities held to maturity $ 66,660 $ 15 $ 663 $ 66,012 Gross Gross Fair Amortized Unrealized Unrealized Market Cost Gains Losses Value (in thousands) Mutual Funds $ 20,041 $ - $ 827 $ 19,214 Preferred Stock 20,473 114 163 20,424 Total investment securities available for sale $ 40,514 $ 114 $ 990 $ 39,638 |
Investments Classified by Contractual Maturity Date [Table Text Block] | September 24, 2016 September 26, 2015 Fair Fair Amortized Market Amortized Market Cost Value Cost Value (in thousands) Due in one year or less $ 13,539 $ 13,552 $ - $ - Due after one year through five years 90,732 91,326 63,522 63,010 Due after five years through ten years - - 3,138 3,002 Total held to maturity securities $ 104,271 $ 104,878 $ 66,660 $ 66,012 Less current portion 13,539 13,552 - - Long term held to maturity securities $ 90,732 $ 91,326 $ 66,660 $ 66,012 |
Note D - Inventories (Tables)
Note D - Inventories (Tables) | 12 Months Ended |
Sep. 24, 2016 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | September 24, September 26, 2016 2015 (in thousands) Finished goods $ 38,285 $ 34,258 Raw materials 18,223 17,000 Packaging materials 6,799 5,949 Equipment parts and other 25,377 25,450 Total Inventories $ 88,684 $ 82,657 |
Note E - Property, Plant and 30
Note E - Property, Plant and Equipment (Tables) | 12 Months Ended |
Sep. 24, 2016 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | September 24, September 26, Estimated 2016 2015 Useful Lives (in years) (in thousands) Land $ 2,512 $ 2,496 - Buildings 26,741 26,741 15 - 39.5 Plant machinery and equipment 227,614 210,728 5 - 20 Marketing equipment 278,299 266,047 5 - 7 Transportation equipment 7,637 6,866 5 Office equipment 22,136 20,586 3 - 5 Improvements 34,750 28,725 5 - 20 Construction in Progress 5,356 9,486 - Total property, plant and equipment $ 605,045 $ 571,675 |
Note F - Goodwill and Intangi31
Note F - Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Sep. 24, 2016 | |
Notes Tables | |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | September 24, 2016 September 26, 2015 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization (in thousands) FOOD SERVICE Indefinite lived intangible assets Trade Names $ 14,150 $ - $ 13,072 $ - Amortized intangible assets Non compete agreements 592 563 592 538 Customer relationships 40,797 37,201 40,797 33,584 License and rights 3,606 2,890 3,606 2,802 TOTAL FOOD SERVICE $ 59,145 $ 40,654 $ 58,067 $ 36,924 RETAIL SUPERMARKETS Indefinite lived intangible assets Trade Names $ 7,206 $ - $ 7,206 $ - Amortized Intangible Assets Non compete agreements 160 160 160 114 Customer relationships 7,979 2,021 7,979 1,220 TOTAL RETAIL SUPERMARKETS $ 15,345 $ 2,181 $ 15,345 $ 1,334 FROZEN BEVERAGES Indefinite lived intangible assets Trade Names $ 9,315 $ - $ 9,315 $ - Amortized intangible assets Non compete agreements 198 198 198 198 Customer relationships 6,678 6,506 6,678 6,075 Licenses and rights 1,601 924 1,601 854 TOTAL FROZEN BEVERAGES $ 17,792 $ 7,628 $ 17,792 $ 7,127 CONSOLIDATED $ 92,282 $ 50,463 $ 91,204 $ 45,385 |
Schedule of Goodwill [Table Text Block] | Food Retail Frozen Service Supermarkets Beverages Total (in thousands) Balance at September 24, 2016 $ 46,832 $ 3,670 $ 35,940 $ 86,442 Balance at September 26, 2015 $ 46,832 $ 3,670 $ 35,940 $ 86,442 |
Note H - Obligations Under Ca32
Note H - Obligations Under Capital Leases (Tables) | 12 Months Ended |
Sep. 24, 2016 | |
Notes Tables | |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | The following is a schedule by years of future minimum lease payments under capital leases: (in thousands) 2017 $ 365 2018 338 2019 300 2020 262 2021 266 2022 and thereafter 69 Total minimum capital lease payments $ 1,600 |
Note I - Income Taxes (Tables)
Note I - Income Taxes (Tables) | 12 Months Ended |
Sep. 24, 2016 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Fiscal year ended September 24, September 26, September 27, 2016 2015 2014 (in thousands) Current U.S. Federal $ 25,126 $ 33,348 $ 31,506 Foreign 2,433 2,260 2,008 State 5,622 6,294 6,693 Total current expense 33,181 41,902 40,207 Deferred U.S. Federal $ 6,444 $ (109 ) $ (217 ) Foreign (145 ) (34 ) (58 ) State 1,364 (23 ) (540 ) Total deferred expense (benefit) 7,663 (166 ) (815 ) Total expense $ 40,844 $ 41,736 $ 39,392 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Fiscal year ended September 24, September 26, September 27, 2016 2015 2014 (in thousands) Income taxes at federal statutory rates $ 40,887 $ 39,172 $ 38,922 Increase (decrease) in taxes resulting from: State income taxes, net of federal income tax benefit 4,541 4,196 4,281 Domestic production activities deduction (2,100 ) (2,100 ) (2,100 ) Increase (reduction) in gross unrecognized tax benefits 20 39 (161 ) Increase in federal valuation allowance 240 1,366 - Share based compensation (1,109 ) 308 437 Other, net (1,635 ) (1,245 ) (1,987 ) Income tax expense $ 40,844 $ 41,736 $ 39,392 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | September 24, September 26, 2016 2015 (in thousands) Deferred tax assets Vacation accrual $ 1,646 $ 1,600 Capital loss carry forwards 1,674 1,434 Insurance accrual 3,317 3,385 Deferred income 112 63 Allowances 1,514 927 Inventory capitalization 954 738 Share-based compensation 1,253 1,480 Net Operating Loss 1,691 1,823 Total deferred tax assets 12,161 11,450 Valuation allowance (1,674 ) (1,434 ) Total deferred tax assets, net 10,487 10,016 Deferred tax liabilities Amortization of goodwill and other intangible assets 27,358 25,791 Depreciation of property and equipment 31,315 24,748 Total deferred tax liabilities 58,673 50,539 Total deferred tax liabilities, net $ 48,186 $ 40,523 |
Note J - Commitments (Tables)
Note J - Commitments (Tables) | 12 Months Ended |
Sep. 24, 2016 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Plants and Offices Equipment Total (in thousands) 2017 $ 6,472 $ 6,879 $ 13,351 2018 5,911 5,626 11,537 2019 5,305 4,292 9,597 2020 4,537 2,365 6,902 2021 3,830 1,012 4,842 2022 and thereafter 18,984 262 19,246 Total minimal rental commitments $ 45,039 $ 20,436 $ 65,475 |
Note L - Stock Options (Tables)
Note L - Stock Options (Tables) | 12 Months Ended |
Sep. 24, 2016 | |
Non-qualified Stock Options [Member] | |
Notes Tables | |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Options Outstanding Options Exercisable Number Weighted- Number Outstanding Average Weighted- Exercisable Weighted- at Remaining Average at Average Range of September 24, Contractual Exercise September 24, Exercise Exercise Prices 2016 Life Price 2016 Price $31.10-$41.75 80,000 1.8 $ 35.46 80,000 $ 35.46 $47.59-$57.99 59,880 4.0 54.30 59,880 54.30 $80.79-$119.44 172,004 5.9 101.61 - - Total options 311,884 4.4 75.56 139,880 43.52 |
Incentive Stock Options [Member] | |
Notes Tables | |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Options Outstanding Options Exercisable Number Weighted- Number Outstanding Average Weighted- Exercisable Weighted- at Remaining Average at Average Range of September 24, Contractual Exercise September 24, Exercise Exercise Prices 2016 Life Price 2016 Price $57.15-$81.67 129,733 1.6 $ 71.68 54,640 $ 57.98 $89.37-$117.65 226,054 3.9 104.94 - - Total options 355,787 3.1 92.81 54,640 57.98 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Incentive Stock Options Nonqualified Stock Options Weighted- Weighted- Stock Average Stock Average Options Exercise Options Exercise Outstanding Price Outstanding Price Balance, September 29, 2013 259,852 $ 51.17 231,247 $ 44.77 Granted 83,440 82.07 38,132 88.26 Exercised (39,097 ) 42.42 (20,000 ) 20.43 Canceled (8,550 ) 58.68 - - Balance, September 27, 2014 295,645 60.83 249,379 53.38 Granted 114,488 100.94 55,152 106.96 Exercised (70,792 ) 47.30 (6,590 ) 51.14 Canceled (6,989 ) 84.13 - - Balance, September 26, 2015 332,352 77.04 297,941 63.34 Granted 120,450 108.69 58,720 112.35 Exercised (86,223 ) 53.67 (44,777 ) 42.53 Canceled (10,792 ) 97.07 - - Balance, September 24, 2016 355,787 $ 92.81 311,884 $ 75.56 Exercisable Options September 24, 2016 54,640 $ 57.98 139,880 $ 43.52 |
Note N - Cash Flow Information
Note N - Cash Flow Information (Tables) | 12 Months Ended |
Sep. 24, 2016 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Fiscal Year Ended September 24, September 26, September 27, 2016 2015 2014 (in thousands) Cash paid for: Interest $ 57 $ 53 $ 41 Income taxes 41,064 43,867 41,318 Non cash items: Capital leases $ 486 $ 1,191 $ 499 |
Note O - Segment Reporting (Tab
Note O - Segment Reporting (Tables) | 12 Months Ended |
Sep. 24, 2016 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Fiscal year ended September 24, September 26, September 27, 2016 2015 2014 (52 weeks) (52 weeks) (52 weeks) (in thousands) Sales to External Customers: Food Service Soft pretzels $ 170,155 $ 168,970 $ 164,680 Frozen juices and ices 51,798 54,454 53,888 Churros 57,318 56,602 55,929 Handhelds 27,427 21,817 24,248 Bakery 294,518 301,135 281,556 Other 20,313 13,657 11,597 Total Food Service $ 621,529 $ 616,635 $ 591,898 Retail Supermarket Soft pretzels $ 33,279 $ 35,727 $ 34,830 Frozen juices and ices 68,924 72,174 59,404 Handhelds 15,347 18,957 21,354 Coupon redemption (4,430 ) (4,725 ) (3,807 ) Other 4,469 1,244 863 Total Retail Supermarket $ 117,589 $ 123,377 $ 112,644 Frozen Beverages Beverages $ 150,118 $ 142,705 $ 133,283 Repair and maintenance service 71,123 65,765 59,805 Machines sales 31,155 26,413 20,224 Other 1,267 1,361 1,597 Total Frozen Beverages $ 253,663 $ 236,244 $ 214,909 Consolidated Sales $ 992,781 $ 976,256 $ 919,451 Depreciation and Amortization: Food Service $ 22,912 $ 21,289 $ 20,882 Retail Supermarket 1,031 1,132 492 Frozen Beverages 16,180 15,850 15,719 Total Depreciation and Amortization $ 40,123 $ 38,271 $ 37,093 Operating Income: Food Service $ 76,539 $ 75,286 $ 73,731 Retail Supermarket 9,618 11,020 11,201 Frozen Beverages 26,653 24,582 21,916 Total Operating Income $ 112,810 $ 110,888 $ 106,848 Capital Expenditures: Food Service $ 24,759 $ 28,228 $ 21,594 Retail Supermarket 369 112 26 Frozen Beverages 23,581 20,301 17,765 Total Capital Expenditures $ 48,709 $ 48,641 $ 39,385 Assets: Food Service $ 589,854 $ 543,851 $ 516,916 Retail Supermarket 22,090 24,209 25,917 Frozen Beverages 178,543 171,609 161,940 Total Assets $ 790,487 $ 739,669 $ 704,773 |
Note P - Accumulated Other Co38
Note P - Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Sep. 24, 2016 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Fiscal Year Ended September 24, 2016 (in thousands) Unrealized Foreign Currency Holding Loss on Translation Marketable Adjustments Securities Total Beginning Balance $ (10,021 ) $ (876 ) $ (10,897 ) Other comprehensive loss before reclassifications (3,065 ) (8 ) (3,073 ) Amounts reclassified from accumulated other comprehensive income - 555 555 Ending Balance $ (13,086 ) $ (329 ) $ (13,415 ) Fiscal Year Ended September 26, 2015 (in thousands) Foreign Currency Unrealized Translation Marketable Adjustments Securities Total Beginning Balance $ (4,632 ) $ (1,356 ) $ (5,988 ) Other comprehensive loss before reclassifications (5,389 ) (2,607 ) (7,996 ) Amounts reclassified from accumulated other comprehensive income - 3,087 3,087 Ending Balance $ (10,021 ) $ (876 ) $ (10,897 ) |
Note Q - Quarterly Financial 39
Note Q - Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Sep. 24, 2016 | |
Notes Tables | |
Quarterly Financial Information [Table Text Block] | Fiscal Year Ended September 24, 2016 Net Earnings Per Gross Net Diluted Net Sales Profit Earnings Share(1) (in thousands, except per share information) 1st Quarter $ 222,850 $ 63,835 $ 12,978 $ 0.69 2nd Quarter 229,710 68,749 15,588 0.83 3rd Quarter 277,981 92,086 26,791 1.43 4th Quarter 262,240 79,797 20,618 1.10 Total $ 992,781 $ 304,467 $ 75,975 $ 4.05 Fiscal Year Ended September 26, 2015 Net Earnings Per Gross Net Diluted Net Sales Profit Earnings Share(1) (in thousands, except per share information) 1st Quarter $ 212,752 $ 61,101 $ 11,256 $ 0.60 2nd Quarter 225,008 66,950 14,637 0.78 3rd Quarter 278,724 90,396 24,462 1.30 4th Quarter 259,772 82,443 19,828 1.05 Total $ 976,256 $ 300,890 $ 70,183 $ 3.73 |
Schedule II - Valuation and Q40
Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Sep. 24, 2016 | |
Notes Tables | |
Summary of Valuation Allowance [Table Text Block] | Opening Charged to Closing Year Description Balance Expense Deductions Balance 2016 Allowance for doubtful accounts $ 304,000 $ 525,000 $ 258,000 (1) $ 571,000 2015 Allowance for doubtful accounts $ 450,000 $ 310,000 $ 456,000 (1) $ 304,000 2014 Allowance for doubtful accounts $ 854,000 $ 161,000 $ 565,000 (1) $ 450,000 |
Note A - Summary of Significa41
Note A - Summary of Significant Accounting Policies (Details Textual) | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 24, 2016USD ($) | Jun. 25, 2016USD ($) | Mar. 26, 2016USD ($) | Dec. 26, 2015USD ($) | Sep. 26, 2015USD ($) | Jun. 27, 2015USD ($) | Mar. 28, 2015USD ($) | Dec. 27, 2014USD ($) | Sep. 24, 2016USD ($)shares | Sep. 26, 2015USD ($)shares | Sep. 27, 2014USD ($) | ||
Frozen Beverages [Member] | Machine Sales [Member] | ||||||||||||
Revenue, Net | $ 24,664,000 | $ 25,536,000 | $ 22,826,000 | |||||||||
Repair and Maintenance Service [Member] | ||||||||||||
Revenue, Net | 24,571,000 | 25,534,000 | $ 22,748,000 | |||||||||
Deferred Revenue | $ 1,671,000 | $ 1,579,000 | 1,671,000 | 1,579,000 | ||||||||
Deferred Revenue, Noncurrent | 145,000 | 70,000 | 145,000 | $ 70,000 | ||||||||
Customer Group One [Member] | Minimum [Member] | ||||||||||||
Accounts Receivable, Net | 1,000,000 | 1,000,000 | ||||||||||
Customer Group One [Member] | Maximum [Member] | ||||||||||||
Accounts Receivable, Net | $ 10,000,000 | $ 10,000,000 | ||||||||||
Customer Group One [Member] | ||||||||||||
Approximate Number of Cusomters | 15 | 15 | ||||||||||
Largest Customer [Member] | Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | ||||||||||||
Concentration Risk, Percentage | 8.00% | 8.00% | 8.00% | |||||||||
Minimum [Member] | 5 year options [Member] | ||||||||||||
Expected Volatility Term | 4 years 30 days | |||||||||||
Minimum [Member] | ||||||||||||
Finite-Lived Intangible Asset, Useful Life | 3 years | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 5 years | |||||||||||
Maximum [Member] | 5 year options [Member] | ||||||||||||
Expected Volatility Term | 4 years 210 days | |||||||||||
Maximum [Member] | ||||||||||||
Finite-Lived Intangible Asset, Useful Life | 20 years | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 10 years | |||||||||||
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | ||||||||||||
Concentration Risk, Percentage | 42.00% | 43.00% | 43.00% | |||||||||
Ingredients and Packaging [Member] | Supplier Concentration Risk [Member] | ||||||||||||
Concentration Risk, Percentage | 0.00% | 0.00% | 0.00% | |||||||||
Ten Year Options [Member] | ||||||||||||
Expected Volatility Term | 10 years | |||||||||||
Sales Discounts, Returns and Allowances, Goods | $ 14,300,000 | $ 11,700,000 | ||||||||||
Shipping, Handling and Transportation Costs | [1] | 73,114,000 | 74,158,000 | $ 71,159,000 | ||||||||
Revenue, Net | $ 262,240,000 | $ 277,981,000 | $ 229,710,000 | $ 222,850,000 | 259,772,000 | $ 278,724,000 | $ 225,008,000 | $ 212,752,000 | 992,781,000 | 976,256,000 | $ 919,451,000 | |
Cash, Uninsured Amount | 100,000,000 | 100,000,000 | ||||||||||
Cash, FDIC Insured Amount | 250,000 | 250,000 | ||||||||||
Accounts Receivable, Net | $ 98,325,000 | 102,649,000 | $ 98,325,000 | 102,649,000 | ||||||||
Employees Covered Under Collective Bargaining Agreement, Percentage | 30.00% | 30.00% | ||||||||||
Allowance for Doubtful Accounts Receivable | $ 571,000 | 304,000 | $ 571,000 | 304,000 | ||||||||
Unrecognized Tax Benefits | 354,000 | 334,000 | 354,000 | 334,000 | ||||||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 219,000 | $ 199,000 | $ 219,000 | $ 199,000 | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 180,170 | 1,500 | ||||||||||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 885,000 | |||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 3,100,000 | $ 3,100,000 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 16.70% | 18.40% | 21.20% | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.30% | 1.70% | 1.60% | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 1.40% | 1.40% | 0.90% | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award Fair Value Assumptions Expected Forfeiture Rate | 19.00% | 19.00% | 20.00% | |||||||||
Advertising Expense | $ 4,870,000 | $ 4,290,000 | $ 3,487,000 | |||||||||
Commodity Futures Contracts and Spot Commodities, Proprietary Capital Charges | $ 75,000,000 | 75,000,000 | ||||||||||
Research and Development Expense | $ 525,000 | $ 506,000 | $ 499,000 | |||||||||
[1] | Includes share-based compensation expense of $48 for the year ended September 24, 2016, $44 for the year ended September 26, 2015 and $42 for the year ended September 27, 2014. |
Note A - Summary of Significa42
Note A - Summary of Significant Accounting Policies - Unreconized Tax Benefits (Details) - USD ($) | 12 Months Ended | |
Sep. 24, 2016 | Sep. 26, 2015 | |
Unrecognized Tax Benefits | $ 354,000 | $ 334,000 |
Additions based on tax positions related to the current year | $ 20,000 |
Note A - Summary of Significa43
Note A - Summary of Significant Accounting Policies - Calculation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | [1] | Dec. 26, 2015 | [1] | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | [1] | Sep. 24, 2016 | Sep. 26, 2015 | Sep. 27, 2014 | |
Net Income available to common stockholders | $ 75,975 | $ 70,183 | $ 71,814 | |||||||||||
Net Income available to common stockholders (in shares) | 18,649 | 18,685 | 18,677 | |||||||||||
Net Income available to common stockholders (in dollars per share) | $ 4.07 | $ 3.76 | $ 3.85 | |||||||||||
Options (in shares) | 120 | 134 | 130 | |||||||||||
Options (in dollars per share) | $ (0.02) | $ (0.03) | $ (0.03) | |||||||||||
Net Income available to common stockholders plus assumed conversions | $ 75,975 | $ 70,183 | $ 71,814 | |||||||||||
Net Income available to common stockholders plus assumed conversions (in shares) | 18,769 | 18,819 | 18,807 | |||||||||||
Net Income available to common stockholders plus assumed conversions (in dollars per share) | $ 1.10 | $ 1.43 | $ 0.83 | $ 0.69 | $ 1.05 | $ 1.30 | $ 0.78 | $ 0.60 | $ 4.05 | $ 3.73 | $ 3.82 | |||
[1] | Total of quarterly amounts do not necessarily agree to the annual report amounts due to separate quarterly calculations of weighted average shares outstanding. |
Note A - Summary of Significa44
Note A - Summary of Significant Accounting Policies - Recognized Share-based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 24, 2016 | Sep. 26, 2015 | Sep. 27, 2014 | |
Employee Stock Option [Member] | |||
Recognized Period Cost | $ 86 | $ 1,098 | $ 1,262 |
Stock Compensation Plan [Member] | |||
Recognized Period Cost | 305 | 328 | 329 |
Restricted Stock [Member] | |||
Recognized Period Cost | 4 | 6 | 17 |
Recognized Period Cost | 395 | 1,432 | 1,608 |
The above compensation is net of tax benefits | $ 1,980 | $ 734 | $ 468 |
Note B - Acquisitions (Details
Note B - Acquisitions (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | ||
May 31, 2014 | Oct. 31, 2013 | Sep. 24, 2016 | Sep. 26, 2015 | |
New York Pretzel [Member] | ||||
Business Combination, Consideration Transferred | $ 11,800,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 849,000 | |||
Goodwill, Acquired During Period | 7,716,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | $ 3,049,000 | |||
PHILLY SWIRL [Member] | ||||
Business Combination, Consideration Transferred | $ 17,400,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 11,100,000 | |||
Goodwill, Acquired During Period | 1,800,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 1,200,000 | |||
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period | 25,000,000 | |||
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed Working Capital Acquired | 4,000,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets Noncurrent | 4,000,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 95,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | $ 4,800,000 | |||
Business Acquisition, Transaction Costs | $ 269,000 | |||
Goodwill, Acquired During Period | $ 0 | $ 0 |
Note C - Investment Securitie46
Note C - Investment Securities (Details Textual) - USD ($) | 12 Months Ended | ||
Sep. 24, 2016 | Sep. 26, 2015 | Sep. 27, 2014 | |
Mutual Fund [Member] | |||
Available-for-sale Securities | $ 12,483,000 | $ 19,214,000 | $ 128,000,000 |
Unrealized Gain (Loss) on Securities | $ 520,000 | ||
Number of Funds | 4 | ||
Marketable Securities | $ 12,500,000 | ||
Marketable Securities, Annual Income, Percentage | 4.90% | ||
Preferred Stock [Member] | |||
Available-for-sale Securities | $ 16,982,000 | 20,424,000 | |
Marketable Securities | $ 17,000,000 | ||
Marketable Securities, Annual Income, Percentage | 5.50% | ||
Marketable Securities, Annual Income, Percentage, not Subject to Tax | 70.00% | ||
Classification of Noncurrent Asset, Fixed-to-Floating Perpetual Preferred Stock | 1 year | ||
Corporate Bond Securities [Member] | |||
Marketable Securities | $ 103,000,000 | ||
Marketable Securities, Annual Income, Percentage | 2.20% | ||
Held-to-maturity Securities, Debt Maturities, without Single Maturity Date, Net Carrying Amount | $ 67,000,000 | ||
Available-for-sale Securities | 29,465,000 | 39,638,000 | |
Proceeds from Sale and Maturity of Marketable Securities | 13,224,000 | 110,117,000 | 7,245,000 |
Marketable Securities, Gain (Loss) | $ (661,000) | $ (4,319,000) | $ (361,000) |
Note C - Investment Securitie47
Note C - Investment Securities - Summary of Held to Maturity Securities (Details) - USD ($) | Sep. 24, 2016 | Sep. 26, 2015 | Sep. 27, 2014 |
Corporate Bond Securities [Member] | |||
Amortized Cost | $ 103,311,000 | $ 66,660,000 | |
Gross Unrealized Gains | 734,000 | 15,000 | |
Gross Unrealized Losses | 138,000 | 663,000 | |
Fair Market Value | 103,907,000 | 66,012,000 | |
Mutual Fund [Member] | |||
Amortized Cost | 13,003,000 | 20,041,000 | |
Gross Unrealized Gains | |||
Gross Unrealized Losses | 520,000 | 827,000 | |
Available-for-sale Securities | 12,483,000 | 19,214,000 | $ 128,000,000 |
Certificates of Deposit [Member] | |||
Amortized Cost | 960,000 | ||
Gross Unrealized Gains | 11,000 | ||
Gross Unrealized Losses | |||
Fair Market Value | 971,000 | ||
Preferred Stock [Member] | |||
Amortized Cost | 16,791,000 | 20,473,000 | |
Gross Unrealized Gains | 273,000 | 114,000 | |
Gross Unrealized Losses | 82,000 | 163,000 | |
Available-for-sale Securities | 16,982,000 | 20,424,000 | |
Amortized Cost | 104,271,000 | 66,660,000 | |
Gross Unrealized Gains | 745,000 | 15,000 | |
Gross Unrealized Losses | 138,000 | 663,000 | |
Fair Market Value | 104,878,000 | 66,012,000 | |
Amortized Cost | 29,794,000 | 40,514,000 | |
Gross Unrealized Gains | 273,000 | 114,000 | |
Gross Unrealized Losses | 602,000 | 990,000 | |
Available-for-sale Securities | $ 29,465,000 | $ 39,638,000 |
Note C - Investment Securitie48
Note C - Investment Securities - Held to Maturity Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 24, 2016 | Sep. 26, 2015 |
Due in one year or less | $ 13,539 | |
Due in one year or less | 13,552 | |
Due after one year through five years | 90,732 | 63,522 |
Due after one year through five years | 91,326 | 63,010 |
Due after five years through ten years | 3,138 | |
Due after five years through ten years | 3,002 | |
Amortized Cost | 104,271 | 66,660 |
Fair Market Value | 104,878 | 66,012 |
Marketable securities held to maturity | 13,539 | |
Less current portion | 13,552 | |
Marketable securities held to maturity | 90,732 | 66,660 |
Long term held to maturity securities | $ 91,326 | $ 66,012 |
Note D - Inventories - Inventor
Note D - Inventories - Inventories (Details) - USD ($) $ in Thousands | Sep. 24, 2016 | Sep. 26, 2015 |
Finished goods | $ 38,285 | $ 34,258 |
Raw materials | 18,223 | 17,000 |
Packaging materials | 6,799 | 5,949 |
Equipment parts and other | 25,377 | 25,450 |
Total Inventories | $ 88,684 | $ 82,657 |
Note E - Property, Plant and 50
Note E - Property, Plant and Equipment (Details Textual) - USD ($) | 12 Months Ended | ||
Sep. 24, 2016 | Sep. 29, 2015 | Sep. 27, 2014 | |
Depreciation | $ 34,536,000 | $ 32,356,000 | $ 31,660,000 |
Note E - Property, Plant and 51
Note E - Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 24, 2016 | Sep. 26, 2015 | |
Land [Member] | ||
Property, plant and equipment, at cost | $ 2,512 | $ 2,496 |
Building [Member] | Minimum [Member] | ||
Property, plant and equipment, estimated useful life | 15 years | |
Building [Member] | Maximum [Member] | ||
Property, plant and equipment, estimated useful life | 39 years 182 days | |
Building [Member] | ||
Property, plant and equipment, at cost | $ 26,741 | 26,741 |
Machinery and Equipment [Member] | Minimum [Member] | ||
Property, plant and equipment, estimated useful life | 5 years | |
Machinery and Equipment [Member] | Maximum [Member] | ||
Property, plant and equipment, estimated useful life | 20 years | |
Machinery and Equipment [Member] | ||
Property, plant and equipment, at cost | $ 227,614 | 210,728 |
Equipment [Member] | Minimum [Member] | ||
Property, plant and equipment, estimated useful life | 5 years | |
Equipment [Member] | Maximum [Member] | ||
Property, plant and equipment, estimated useful life | 7 years | |
Equipment [Member] | ||
Property, plant and equipment, at cost | $ 278,299 | 266,047 |
Transportation Equipment [Member] | ||
Property, plant and equipment, at cost | $ 7,637 | 6,866 |
Property, plant and equipment, estimated useful life | 5 years | |
Office Equipment [Member] | Minimum [Member] | ||
Property, plant and equipment, estimated useful life | 3 years | |
Office Equipment [Member] | Maximum [Member] | ||
Property, plant and equipment, estimated useful life | 5 years | |
Office Equipment [Member] | ||
Property, plant and equipment, at cost | $ 22,136 | 20,586 |
Improvements [Member] | Minimum [Member] | ||
Property, plant and equipment, estimated useful life | 5 years | |
Improvements [Member] | Maximum [Member] | ||
Property, plant and equipment, estimated useful life | 20 years | |
Improvements [Member] | ||
Property, plant and equipment, at cost | $ 34,750 | 28,725 |
Construction in Progress [Member] | ||
Property, plant and equipment, at cost | 5,356 | 9,486 |
Property, plant and equipment, at cost | $ 605,045 | $ 571,675 |
Note F - Goodwill and Intangi52
Note F - Goodwill and Intangible Assets (Details Textual) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
May 31, 2014USD ($) | Oct. 31, 2013USD ($) | Jun. 28, 2014USD ($) | Dec. 28, 2013USD ($) | Sep. 24, 2016USD ($) | Sep. 26, 2015USD ($) | Sep. 27, 2014USD ($) | |
Minimum [Member] | |||||||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||||||
Maximum [Member] | |||||||
Finite-Lived Intangible Asset, Useful Life | 20 years | ||||||
New York Pretzel [Member] | Food Service [Member] | |||||||
Indefinite-lived Intangible Assets Acquired | $ 849,000 | ||||||
Goodwill, Acquired During Period | $ 7,716,000 | ||||||
New York Pretzel [Member] | |||||||
Goodwill, Acquired During Period | $ 7,716,000 | ||||||
PHILLY SWIRL [Member] | Retail Supermarket [Member] | |||||||
Indefinite-lived Intangible Assets Acquired | $ 11,060,000 | ||||||
Goodwill, Acquired During Period | $ 1,826,000 | ||||||
PHILLY SWIRL [Member] | |||||||
Goodwill, Acquired During Period | $ 1,800,000 | ||||||
Frozen Beverages [Member] | |||||||
Indefinite-lived Intangible Assets Acquired | $ 200,000 | ||||||
HEARTBAR [Member] | |||||||
Indefinite-lived Intangible Assets Acquired | $ 1,078,000 | ||||||
Number of Reportable Segments | 3 | ||||||
Goodwill, Impairment Loss | $ 0 | 0 | $ 0 | ||||
Amortization of Intangible Assets | 5,078,000 | 5,370,000 | $ 4,932,000 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 2,600,000 | ||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 1,800,000 | ||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 1,700,000 | ||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 1,400,000 | ||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 1,000,000 | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years 219 days | ||||||
Goodwill, Acquired During Period | $ 0 | $ 0 |
Note F - Goodwill and Intangi53
Note F - Goodwill and Intangible Assets - Intangible Assets by Reporting Segment (Details) - USD ($) $ in Thousands | Sep. 24, 2016 | Sep. 26, 2015 |
Trade Names [Member] | Food Service [Member] | ||
Indefinite lived intangible assets | $ 14,150 | $ 13,072 |
Trade Names [Member] | Retail Supermarket [Member] | ||
Indefinite lived intangible assets | 7,206 | 7,206 |
Trade Names [Member] | Frozen Beverages [Member] | ||
Indefinite lived intangible assets | 9,315 | 9,315 |
Food Service [Member] | Noncompete Agreements [Member] | ||
Finite lived intangible assets, gross carrying amount | 592 | 592 |
Finite lived intangible assets, accumulated amortization | 563 | 538 |
Food Service [Member] | Customer Relationships [Member] | ||
Finite lived intangible assets, gross carrying amount | 40,797 | 40,797 |
Finite lived intangible assets, accumulated amortization | 37,201 | 33,584 |
Food Service [Member] | License and Rights [Member] | ||
Finite lived intangible assets, gross carrying amount | 3,606 | 3,606 |
Finite lived intangible assets, accumulated amortization | 2,890 | 2,802 |
Food Service [Member] | ||
Finite lived intangible assets, accumulated amortization | 40,654 | 36,924 |
Finite lived intangible assets, gross carrying amount | 59,145 | 58,067 |
Retail Supermarket [Member] | Noncompete Agreements [Member] | ||
Finite lived intangible assets, gross carrying amount | 160 | 160 |
Finite lived intangible assets, accumulated amortization | 160 | 114 |
Retail Supermarket [Member] | Customer Relationships [Member] | ||
Finite lived intangible assets, gross carrying amount | 7,979 | 7,979 |
Finite lived intangible assets, accumulated amortization | 2,021 | 1,220 |
Retail Supermarket [Member] | ||
Finite lived intangible assets, accumulated amortization | 2,181 | 1,334 |
Finite lived intangible assets, gross carrying amount | 15,345 | 15,345 |
Frozen Beverages [Member] | Noncompete Agreements [Member] | ||
Finite lived intangible assets, gross carrying amount | 198 | 198 |
Finite lived intangible assets, accumulated amortization | 198 | 198 |
Frozen Beverages [Member] | Customer Relationships [Member] | ||
Finite lived intangible assets, gross carrying amount | 6,678 | 6,678 |
Finite lived intangible assets, accumulated amortization | 6,506 | 6,075 |
Frozen Beverages [Member] | License and Rights [Member] | ||
Finite lived intangible assets, gross carrying amount | 1,601 | 1,601 |
Finite lived intangible assets, accumulated amortization | 924 | 854 |
Frozen Beverages [Member] | ||
Finite lived intangible assets, accumulated amortization | 7,628 | 7,127 |
Finite lived intangible assets, gross carrying amount | 17,792 | 17,792 |
Finite lived intangible assets, accumulated amortization | 50,463 | 45,385 |
Finite lived intangible assets, gross carrying amount | $ 92,282 | $ 91,204 |
Note F - Goodwill and Intangi54
Note F - Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | Sep. 24, 2016 | Sep. 26, 2015 |
Food Service [Member] | ||
Goodwill | $ 46,832 | $ 46,832 |
Retail Supermarket [Member] | ||
Goodwill | 3,670 | 3,670 |
Frozen Beverages [Member] | ||
Goodwill | 35,940 | 35,940 |
Goodwill | $ 86,442 | $ 86,442 |
Note G - Long-term Debt (Detail
Note G - Long-term Debt (Details Textual) - USD ($) | Nov. 30, 2016 | Sep. 24, 2016 | Sep. 26, 2015 |
Subsequent Event [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000,000 | ||
Long-term Line of Credit | $ 0 | $ 0 |
Note H - Obligations Under Ca56
Note H - Obligations Under Capital Leases - Future Minimum Lease Payments (Details) $ in Thousands | Sep. 24, 2016USD ($) |
2,017 | $ 365 |
2,018 | 338 |
2,019 | 300 |
2,020 | 262 |
2,021 | 266 |
2022 and thereafter | 69 |
Total minimum capital lease payments | $ 1,600 |
Note I - Income Taxes (Details
Note I - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | ||
Sep. 24, 2016 | Sep. 27, 2014 | Sep. 26, 2015 | |
PHILLY SWIRL [Member] | Domestic Tax Authority [Member] | Capital Loss Carryforward [Member] | |||
Tax Credit Carryforward, Amount | $ 5,000,000 | ||
PHILLY SWIRL [Member] | Domestic Tax Authority [Member] | Annual Limit [Member] | |||
Operating Loss Carryforwards | 378,000 | ||
PHILLY SWIRL [Member] | |||
Deferred Tax Assets, Valuation Allowance | $ 0 | ||
Increase (Decrease) in Deferred Income Taxes | $ 823,000 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | ||
Operating Loss Carryforwards | $ 4,600,000 | $ 4,600,000 | |
Deferred Tax Assets, Valuation Allowance | $ 1,674,000 | $ 1,434,000 |
Note I - Income Taxes - Income
Note I - Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 24, 2016 | Sep. 26, 2015 | Sep. 27, 2014 | |
Current | |||
U.S. Federal | $ 25,126 | $ 33,348 | $ 31,506 |
Foreign | 2,433 | 2,260 | 2,008 |
State | 5,622 | 6,294 | 6,693 |
Total current expense | 33,181 | 41,902 | 40,207 |
Deferred | |||
U.S. Federal | 6,444 | (109) | (217) |
Foreign | (145) | (34) | (58) |
State | 1,364 | (23) | (540) |
Total deferred expense (benefit) | 7,663 | (166) | (815) |
Total expense | $ 40,844 | $ 41,736 | $ 39,392 |
Note I - Income Taxes - Effecti
Note I - Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 24, 2016 | Sep. 26, 2015 | Sep. 27, 2014 | |
Income taxes at federal statutory rates | $ 40,887 | $ 39,172 | $ 38,922 |
State income taxes, net of federal income tax benefit | 4,541 | 4,196 | 4,281 |
Domestic production activities deduction | (2,100) | (2,100) | (2,100) |
Increase (reduction) in gross unrecognized tax benefits | 20 | 39 | (161) |
Increase in federal valuation allowance | 240 | 1,366 | |
Share based compensation | (1,109) | 308 | 437 |
Other, net | (1,635) | (1,245) | (1,987) |
Income tax expense | $ 40,844 | $ 41,736 | $ 39,392 |
Note I - Income Taxes - Deferre
Note I - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 24, 2016 | Sep. 26, 2015 |
Deferred tax assets | ||
Vacation accrual | $ 1,646 | $ 1,600 |
Capital loss carry forwards | 1,674 | 1,434 |
Insurance accrual | 3,317 | 3,385 |
Deferred income | 112 | 63 |
Allowances | 1,514 | 927 |
Inventory capitalization | 954 | 738 |
Share-based compensation | 1,253 | 1,480 |
Net Operating Loss | 1,691 | 1,823 |
Total deferred tax assets | 12,161 | 11,450 |
Valuation allowance | (1,674) | (1,434) |
Total deferred tax assets, net | 10,487 | 10,016 |
Deferred tax liabilities | ||
Amortization of goodwill and other intangible assets | 27,358 | 25,791 |
Depreciation of property and equipment | 31,315 | 24,748 |
Total deferred tax liabilities | 58,673 | 50,539 |
Total deferred tax liabilities, net | $ 48,186 | $ 40,523 |
Note J - Commitments (Details T
Note J - Commitments (Details Textual) | 12 Months Ended | |||
Sep. 24, 2016USD ($) | Sep. 26, 2015USD ($) | Sep. 27, 2014USD ($) | Sep. 27, 2015USD ($) | |
Operating Leases, Rent Expense | $ 17,481,000 | $ 16,448,000 | $ 15,163,000 | |
Accrued Insurance | 8,200,000 | $ 8,200,000 | ||
Letters of Credit Outstanding, Amount | $ 8,675,000 | $ 9,075,000 | ||
Entity Number of Employees | 1,500 | |||
Self Insurance Reserve | $ 1,719,000 | $ 1,659,000 |
Note J - Commitments - Future M
Note J - Commitments - Future Minimum Rental Payments for Operating Leases (Details) $ in Thousands | Sep. 24, 2016USD ($) |
Building [Member] | |
2,017 | $ 6,472 |
2,018 | 5,911 |
2,019 | 5,305 |
2,020 | 4,537 |
2,021 | 3,830 |
2022 and thereafter | 18,984 |
Total minimal rental commitments | 45,039 |
Equipment [Member] | |
2,017 | 6,879 |
2,018 | 5,626 |
2,019 | 4,292 |
2,020 | 2,365 |
2,021 | 1,012 |
2022 and thereafter | 262 |
Total minimal rental commitments | 20,436 |
2,017 | 13,351 |
2,018 | 11,537 |
2,019 | 9,597 |
2,020 | 6,902 |
2,021 | 4,842 |
2022 and thereafter | 19,246 |
Total minimal rental commitments | $ 65,475 |
Note K - Capital Stock (Details
Note K - Capital Stock (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 24, 2016 | Sep. 26, 2015 | Sep. 27, 2014 | |
Stock Repurchased and Retired During Period, Shares | 0 | 34,052 | 80,565 | 27,083 | 141,700 | 72,698 | 81,685 |
Stock Repurchased and Retired During Period, Value | $ 0 | $ 3,506,693 | $ 8,642,887 | $ 3,115,439 | $ 15,265,019 | $ 8,011,118 | $ 7,504,729 |
Note L - Stock Options (Details
Note L - Stock Options (Details Textual) - USD ($) | 12 Months Ended | ||
Sep. 24, 2016 | Sep. 26, 2015 | Sep. 27, 2014 | |
Employee Stock Purchase Plan [Member] | |||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 13,747 | 13,648 | 15,650 |
Share Price | $ 96 | $ 86.01 | $ 70.40 |
Allocated Share-based Compensation Expense | $ 305,000 | $ 328,000 | $ 329,000 |
Incentive Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 13.94 | $ 15.27 | $ 15.24 |
Non-qualified Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 19.95 | $ 21.90 | $ 17.34 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 800,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 174,875 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Offering Date | 85.00% | ||
Allocated Share-based Compensation Expense | $ 395,000 | $ 1,432,000 | $ 1,608,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 8,400,000 | 4,800,000 | 3,400,000 |
Proceeds from Stock Options Exercised | 5,300,000 | 3,100,000 | 1,500,000 |
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | $ 1,600,000 | $ 874,000 | $ 1,000,000 |
Note L - Stock Options - Stock
Note L - Stock Options - Stock Option Activity (Details) - $ / shares | 12 Months Ended | ||
Sep. 24, 2016 | Sep. 26, 2015 | Sep. 27, 2014 | |
Incentive Stock Options [Member] | |||
Balance (in shares) | 332,352 | 295,645 | 259,852 |
Balance (in dollars per share) | $ 77.04 | $ 60.83 | $ 51.17 |
Granted (in shares) | 120,450 | 114,488 | 83,440 |
Granted (in dollars per share) | $ 108.69 | $ 100.94 | $ 82.07 |
Exercised (in shares) | (86,223) | (70,792) | (39,097) |
Exercised (in dollars per share) | $ 53.67 | $ 47.30 | $ 42.42 |
Canceled (in shares) | (10,792) | (6,989) | (8,550) |
Canceled (in dollars per share) | $ 97.07 | $ 84.13 | $ 58.68 |
Balance (in shares) | 355,787 | 332,352 | 295,645 |
Balance (in dollars per share) | $ 92.81 | $ 77.04 | $ 60.83 |
September 24, 2016 (in shares) | 54,640 | ||
September 24, 2016 (in dollars per share) | $ 57.98 | ||
Non-qualified Stock Options [Member] | |||
Balance (in shares) | 297,941 | 249,379 | 231,247 |
Balance (in dollars per share) | $ 63.34 | $ 53.38 | $ 44.77 |
Granted (in shares) | 58,720 | 55,152 | 38,132 |
Granted (in dollars per share) | $ 112.35 | $ 106.96 | $ 88.26 |
Exercised (in shares) | (44,777) | (6,590) | (20,000) |
Exercised (in dollars per share) | $ 42.53 | $ 51.14 | $ 20.43 |
Canceled (in shares) | |||
Canceled (in dollars per share) | |||
Balance (in shares) | 311,884 | 297,941 | 249,379 |
Balance (in dollars per share) | $ 75.56 | $ 63.34 | $ 53.38 |
September 24, 2016 (in shares) | 139,880 | ||
September 24, 2016 (in dollars per share) | $ 43.52 |
Note L - Stock Options - Incent
Note L - Stock Options - Incentive Stock Options by Excercise Price Range (Details) - Incentive Stock Options [Member] - $ / shares | 12 Months Ended | |||
Sep. 24, 2016 | Sep. 26, 2015 | Sep. 27, 2014 | Sep. 28, 2013 | |
Exercise Price Range 1 [Member] | ||||
Options outstanding (in shares) | 129,733 | |||
Options outstanding, weighted-average remaining contractual life | 1 year 219 days | |||
Options outstanding, weighted-average exercise price (in dollars per share) | $ 71.68 | |||
Options exercisable (in shares) | 54,640 | |||
Options exercisable, weighted-average exercise price (in dollars per share) | $ 57.98 | |||
Exercise Price Range 2 [Member] | ||||
Options outstanding (in shares) | 226,054 | |||
Options outstanding, weighted-average remaining contractual life | 3 years 328 days | |||
Options outstanding, weighted-average exercise price (in dollars per share) | $ 104.94 | |||
Options exercisable (in shares) | ||||
Options exercisable, weighted-average exercise price (in dollars per share) | ||||
Options outstanding (in shares) | 355,787 | 332,352 | 295,645 | 259,852 |
Options outstanding, weighted-average remaining contractual life | 3 years 36 days | |||
Options outstanding, weighted-average exercise price (in dollars per share) | $ 92.81 | $ 77.04 | $ 60.83 | $ 51.17 |
Options exercisable (in shares) | 54,640 | |||
Options exercisable, weighted-average exercise price (in dollars per share) | $ 57.98 |
Note L - Stock Options - Nonqua
Note L - Stock Options - Nonqualified Stock Options by Excercise Price Range (Details) - Non-qualified Stock Options [Member] - $ / shares | 12 Months Ended | |||
Sep. 24, 2016 | Sep. 26, 2015 | Sep. 27, 2014 | Sep. 28, 2013 | |
Exercise Price Range 1 [Member] | ||||
Options outstanding (in shares) | 80,000 | |||
Options outstanding, weighted-average remaining contractual life | 1 year 292 days | |||
Options outstanding, weighted-average exercise price (in dollars per share) | $ 35.46 | |||
Options exercisable (in shares) | 80,000 | |||
Options exercisable, weighted-average exercise price (in dollars per share) | $ 35.46 | |||
Exercise Price Range 2 [Member] | ||||
Options outstanding (in shares) | 59,880 | |||
Options outstanding, weighted-average remaining contractual life | 4 years | |||
Options outstanding, weighted-average exercise price (in dollars per share) | $ 54.30 | |||
Options exercisable (in shares) | 59,880 | |||
Options exercisable, weighted-average exercise price (in dollars per share) | $ 54.30 | |||
Exercise Price Range 3 [Member] | ||||
Options outstanding (in shares) | 172,004 | |||
Options outstanding, weighted-average remaining contractual life | 5 years 328 days | |||
Options outstanding, weighted-average exercise price (in dollars per share) | $ 101.61 | |||
Options exercisable (in shares) | ||||
Options exercisable, weighted-average exercise price (in dollars per share) | ||||
Options outstanding (in shares) | 311,884 | 297,941 | 249,379 | 231,247 |
Options outstanding, weighted-average remaining contractual life | 4 years 146 days | |||
Options outstanding, weighted-average exercise price (in dollars per share) | $ 75.56 | $ 63.34 | $ 53.38 | $ 44.77 |
Options exercisable (in shares) | 139,880 | |||
Options exercisable, weighted-average exercise price (in dollars per share) | $ 43.52 |
Note M - 401(k) Profit-sharin68
Note M - 401(k) Profit-sharing Plan (Details Textual) - USD ($) | 12 Months Ended | ||
Sep. 24, 2016 | Sep. 26, 2015 | Sep. 27, 2014 | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 1,936,000 | $ 1,836,000 | $ 1,686,000 |
Note N - Cash Flow Informatio69
Note N - Cash Flow Information - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 24, 2016 | Sep. 26, 2015 | Sep. 27, 2014 | |
Cash paid for: | |||
Interest | $ 57 | $ 53 | $ 41 |
Income taxes | 41,064 | 43,867 | 41,318 |
Non cash items: | |||
Capital leases | $ 486 | $ 1,191 | $ 499 |
Note O - Segment Reporting (Det
Note O - Segment Reporting (Details Textual) | 12 Months Ended |
Sep. 24, 2016 | |
Number of Operating Segments | 3 |
Number of Reportable Segments | 3 |
Note O - Segment Reporting - Re
Note O - Segment Reporting - Reportable Segments Operations Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 24, 2016 | Sep. 26, 2015 | Sep. 27, 2014 | |
Soft Pretzels [Member] | Food Service [Member] | |||
Sales | $ 170,155 | $ 168,970 | $ 164,680 |
Soft Pretzels [Member] | Retail Supermarket [Member] | |||
Sales | 33,279 | 35,727 | 34,830 |
Frozen Juices and Ices [Member] | Food Service [Member] | |||
Sales | 51,798 | 54,454 | 53,888 |
Frozen Juices and Ices [Member] | Retail Supermarket [Member] | |||
Sales | 68,924 | 72,174 | 59,404 |
Churros [Member] | Food Service [Member] | |||
Sales | 57,318 | 56,602 | 55,929 |
Handhelds [Member] | Food Service [Member] | |||
Sales | 27,427 | 21,817 | 24,248 |
Handhelds [Member] | Retail Supermarket [Member] | |||
Sales | 15,347 | 18,957 | 21,354 |
Bakery [Member] | Food Service [Member] | |||
Sales | 294,518 | 301,135 | 281,556 |
Other Products [Member] | Food Service [Member] | |||
Sales | 20,313 | 13,657 | 11,597 |
Other Products [Member] | Retail Supermarket [Member] | |||
Sales | 4,469 | 1,244 | 863 |
Other Products [Member] | Frozen Beverages [Member] | |||
Sales | 1,267 | 1,361 | 1,597 |
Coupon Redemtion [Member] | Retail Supermarket [Member] | |||
Sales | (4,430) | (4,725) | (3,807) |
Beverage [Member] | Frozen Beverages [Member] | |||
Sales | 150,118 | 142,705 | 133,283 |
Repair and Maintenance Service [Member] | Frozen Beverages [Member] | |||
Sales | 71,123 | 65,765 | 59,805 |
Machine Sales [Member] | Frozen Beverages [Member] | |||
Sales | 31,155 | 26,413 | 20,224 |
Food Service [Member] | |||
Sales | 621,529 | 616,635 | 591,898 |
Depreciation and amortization | 22,912 | 21,289 | 20,882 |
Operating income | 76,539 | 75,286 | 73,731 |
Capital expenditure | 24,759 | 28,228 | 21,594 |
Assets | 589,854 | 543,851 | 516,916 |
Retail Supermarket [Member] | |||
Sales | 117,589 | 123,377 | 112,644 |
Depreciation and amortization | 1,031 | 1,132 | 492 |
Operating income | 9,618 | 11,020 | 11,201 |
Capital expenditure | 369 | 112 | 26 |
Assets | 22,090 | 24,209 | 25,917 |
Frozen Beverages [Member] | |||
Sales | 253,663 | 236,244 | 214,909 |
Depreciation and amortization | 16,180 | 15,850 | 15,719 |
Operating income | 26,653 | 24,582 | 21,916 |
Capital expenditure | 23,581 | 20,301 | 17,765 |
Assets | 178,543 | 171,609 | 161,940 |
Sales | 992,781 | 976,256 | 919,451 |
Depreciation and amortization | 40,123 | 38,271 | 37,093 |
Operating income | 112,810 | 110,888 | 106,848 |
Capital expenditure | 48,709 | 48,641 | 39,385 |
Assets | $ 790,487 | $ 739,669 | $ 704,773 |
Note P - Accumulated Other Co72
Note P - Accumulated Other Comprehensive Loss - Changes to the Components of Other Comprehensive Loss (Unaudited) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 24, 2016 | Sep. 26, 2015 | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||
Beginning balance | $ (10,021) | $ (4,632) |
Other comprehensive loss before reclassifications | (3,065) | (5,389) |
Amounts reclassified from accumulated other comprehensive income | ||
Ending balance | (13,086) | (10,021) |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||
Beginning balance | (876) | (1,356) |
Other comprehensive loss before reclassifications | (8) | (2,607) |
Amounts reclassified from accumulated other comprehensive income | 555 | 3,087 |
Ending balance | (329) | (876) |
Beginning balance | (10,897) | (5,988) |
Other comprehensive loss before reclassifications | (3,073) | (7,996) |
Amounts reclassified from accumulated other comprehensive income | 555 | 3,087 |
Ending balance | $ (13,415) | $ (10,897) |
Note Q - Quarterly Financial 73
Note Q - Quarterly Financial Data (Unaudited) - Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 24, 2016 | Sep. 26, 2015 | Sep. 27, 2014 | ||||
Revenue, Net | $ 262,240 | $ 277,981 | $ 229,710 | $ 222,850 | $ 259,772 | $ 278,724 | $ 225,008 | $ 212,752 | $ 992,781 | $ 976,256 | $ 919,451 | |||
Gross Profit | 79,797 | 92,086 | 68,749 | 63,835 | 82,443 | 90,396 | 66,950 | 61,101 | 304,467 | 300,890 | 287,577 | |||
Net Earnings | $ 20,618 | $ 26,791 | $ 15,588 | $ 12,978 | $ 19,828 | $ 24,462 | $ 14,637 | $ 11,256 | $ 75,975 | $ 70,183 | $ 71,814 | |||
Net Income available to common stockholders plus assumed conversions (in dollars per share) | $ 1.10 | $ 1.43 | $ 0.83 | [1] | $ 0.69 | [1] | $ 1.05 | $ 1.30 | $ 0.78 | $ 0.60 | [1] | $ 4.05 | $ 3.73 | $ 3.82 |
[1] | Total of quarterly amounts do not necessarily agree to the annual report amounts due to separate quarterly calculations of weighted average shares outstanding. |
Schedule II - Valuation and Q74
Schedule II - Valuation and Qualifying Accounts - Valuation and Qualifying Accounts (Details) - Allowance for Doubtful Accounts [Member] - USD ($) | 12 Months Ended | ||
Sep. 24, 2016 | Sep. 26, 2015 | Sep. 27, 2014 | |
Opening Balance | $ 304,000 | $ 450,000 | $ 854,000 |
Charged to Expense | 525,000 | 310,000 | 161,000 |
Deductions | 258,000 | 456,000 | 565,000 |
Closing Balance | $ 571,000 | $ 304,000 | $ 450,000 |