Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | May 18, 2018 | Sep. 23, 2017 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | MONRO, INC. | ||
Entity Central Index Key | 876,427 | ||
Document Type | 10-K | ||
Document Period End Date | Mar. 31, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Well Known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 1,650,500,000 | ||
Entity Common Stock Shares Outstanding | 32,861,151 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 25, 2017 |
Current assets: | ||
Cash and equivalents | $ 1,909 | $ 8,995 |
Trade receivables | 11,582 | 11,465 |
Federal and state income taxes receivable | 4,185 | 3,527 |
Inventories | 152,367 | 142,604 |
Other current assets | 37,213 | 32,639 |
Total current assets | 207,256 | 199,230 |
Property, plant and equipment | 767,864 | 712,999 |
Less - Accumulated depreciation and amortization | (351,195) | (318,365) |
Net property, plant and equipment | 416,669 | 394,634 |
Goodwill | 522,892 | 501,736 |
Intangible assets | 49,143 | 54,288 |
Other non-current assets | 10,997 | 11,331 |
Long-term deferred income tax assets | 11,475 | 24,045 |
Total assets | 1,218,432 | 1,185,264 |
Current liabilities: | ||
Current portion of long-term debt, capital leases and financing obligations | 18,989 | 15,298 |
Trade payables | 84,568 | 79,492 |
Accrued payroll, payroll taxes and other payroll benefits | 20,197 | 24,979 |
Accrued insurance | 36,739 | 35,325 |
Warranty reserves | 12,381 | 10,843 |
Other current liabilities | 21,131 | 19,956 |
Total current liabilities | 194,005 | 185,893 |
Long-term debt | 148,068 | 182,337 |
Long-term capital leases and financing obligations | 227,220 | 213,166 |
Accrued rent expense | 4,530 | 5,037 |
Other long-term liabilities | 14,141 | 15,137 |
Long-term income taxes payable | 1,992 | 2,440 |
Total liabilities | 589,956 | 604,010 |
Commitments and contingencies – Note 15 | ||
Shareholders' equity: | ||
Class C Convertible Preferred Stock, $1.50 par value, $.064 conversion value; 150,000 shares authorized; 21,802 shares issued and outstanding | 33 | 33 |
Common Stock, $.01 par value, 65,000,000 shares authorized; 39,166,392 and 39,012,189 shares issued at March 31, 2018 and March 25, 2017, respectively | 392 | 390 |
Treasury Stock, 6,330,008 and 6,322,417 shares at March 31, 2018 and March 25, 2017, respectively, at cost | (106,563) | (106,212) |
Additional paid-in capital | 199,576 | 191,553 |
Accumulated other comprehensive loss | (4,248) | (3,161) |
Retained earnings | 539,286 | 498,651 |
Total shareholders' equity | 628,476 | 581,254 |
Total liabilities and shareholders' equity | $ 1,218,432 | $ 1,185,264 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2018 | Mar. 25, 2017 |
Consolidated Balance Sheets [Abstract] | ||
Class C convertible preferred stock par value | $ 1.50 | $ 1.50 |
Class C convertible preferred stock, conversion value | $ 0.064 | $ 0.064 |
Class C convertible preferred stock shares authorized | 150,000 | 150,000 |
Class C convertible preferred stock shares issued | 21,802 | 21,802 |
Class C convertible preferred stock shares outstanding | 21,802 | 21,802 |
Common stock par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 65,000,000 | 65,000,000 |
Common stock shares issued | 39,166,392 | 39,012,189 |
Treasury stock shares | 6,330,008 | 6,322,417 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 25, 2017 | Mar. 26, 2016 | |
Consolidated Statements Of Comprehensive Income [Abstract] | |||
Sales | $ 1,127,815 | $ 1,021,511 | $ 943,651 |
Cost of sales, including distribution and occupancy costs | 692,241 | 624,622 | 557,948 |
Gross profit | 435,574 | 396,889 | 385,703 |
Operating, selling, general and administrative expenses | 308,278 | 280,505 | 265,114 |
Operating income | 127,296 | 116,384 | 120,589 |
Interest expense, net of interest income | 24,296 | 19,768 | 15,542 |
Other income, net | (454) | (628) | (374) |
Income before provision for income taxes | 103,454 | 97,244 | 105,421 |
Provision for income taxes | 39,519 | 35,718 | 38,616 |
Net income | 63,935 | 61,526 | 66,805 |
Other comprehensive (loss) income: | |||
Changes in pension, net of tax (benefit) provision of ($168), $788 and $65, respectively | (390) | 1,415 | 8 |
Other comprehensive (loss) income | (390) | 1,415 | 8 |
Comprehensive income | $ 63,545 | $ 62,941 | $ 66,813 |
Earnings per share: | |||
Basic | $ 1.94 | $ 1.88 | $ 2.07 |
Diluted | $ 1.92 | $ 1.85 | $ 2 |
Weighted average number of common shares outstanding used in | |||
Basic | 32,767 | 32,413 | 32,026 |
Diluted | 33,341 | 33,301 | 33,353 |
Consolidated Statements Of Com5
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 25, 2017 | Mar. 26, 2016 | |
Consolidated Statements Of Comprehensive Income [Abstract] | |||
Tax provision (benefit) related to changes in pension | $ (168) | $ 788 | $ 65 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes in Shareholders' Equity - USD ($) $ in Thousands | Class C Convertible Preferred Stock [Member] | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] | Total | |||
Balance beginning at Mar. 28, 2015 | $ 49 | $ 380 | $ (95,638) | $ 160,880 | $ (4,584) | $ 412,524 | $ 473,611 | |||
Beginning balance, preferred shares at Mar. 28, 2015 | 33,000 | |||||||||
Beginning balance, common shares at Mar. 28, 2015 | 38,008,000 | 6,180,000 | ||||||||
Net income | 66,805 | 66,805 | ||||||||
Other comprehensive income (loss): | ||||||||||
Pension liability adjustment | 8 | 8 | ||||||||
Dividends: | ||||||||||
Preferred dividends | [1] | (456) | (456) | |||||||
Common dividends | [1] | (19,231) | (19,231) | |||||||
Tax benefit from exercise of stock options | 6,677 | 6,677 | ||||||||
Exercise of stock options | [2] | $ 6 | $ (10,218) | 16,243 | $ 6,031 | |||||
Exercise of stock options, shares | 549,000 | [2] | 137,000 | [2] | 549,141 | |||||
Stock-based compensation | 2,750 | $ 2,750 | ||||||||
Balance ending at Mar. 26, 2016 | $ 49 | $ 386 | $ (105,856) | 186,550 | (4,576) | 459,642 | 536,195 | |||
Ending balance, preferred shares at Mar. 26, 2016 | 33,000 | |||||||||
Ending balance, common shares at Mar. 26, 2016 | 38,557,000 | 6,317,000 | ||||||||
Net income | 61,526 | 61,526 | ||||||||
Other comprehensive income (loss): | ||||||||||
Pension liability adjustment | 1,415 | 1,415 | ||||||||
Dividends: | ||||||||||
Preferred dividends | [1] | (447) | (447) | |||||||
Common dividends | [1] | (22,070) | (22,070) | |||||||
Conversion of Class C Preferred Stock | $ (16) | $ 2 | 14 | |||||||
Conversion of Class C Preferred Stock, shares | (11,000) | 250,000 | ||||||||
Tax benefit from exercise of stock options | 3,510 | 3,510 | ||||||||
Exercise of stock options | $ 2 | $ (356) | (1,004) | $ (1,358) | ||||||
Exercise of stock options, shares | 205,000 | 5,000 | 485,660 | |||||||
Stock-based compensation | 2,483 | $ 2,483 | ||||||||
Balance ending at Mar. 25, 2017 | $ 33 | $ 390 | $ (106,212) | 191,553 | (3,161) | 498,651 | $ 581,254 | |||
Ending balance, preferred shares at Mar. 25, 2017 | 22,000 | 21,802 | ||||||||
Ending balance, common shares at Mar. 25, 2017 | 39,012,000 | 6,322,000 | ||||||||
Net income | 63,935 | $ 63,935 | ||||||||
Other comprehensive income (loss): | ||||||||||
Pension liability adjustment | (390) | (390) | ||||||||
Dividends: | ||||||||||
Preferred dividends | [1] | (368) | (368) | |||||||
Common dividends | [1] | (23,601) | (23,601) | |||||||
Reclassification of tax effects to Retained Earnings | (697) | 697 | ||||||||
Dividends payable | (28) | (28) | ||||||||
Exercise of stock options | $ 2 | $ (351) | 5,165 | $ 4,816 | ||||||
Exercise of stock options, shares | 154,000 | 8,000 | 170,354 | |||||||
Stock-based compensation | 2,858 | $ 2,858 | ||||||||
Balance ending at Mar. 31, 2018 | $ 33 | $ 392 | $ (106,563) | $ 199,576 | $ (4,248) | $ 539,286 | $ 628,476 | |||
Ending balance, preferred shares at Mar. 31, 2018 | 22,000 | 21,802 | ||||||||
Ending balance, common shares at Mar. 31, 2018 | 39,166,000 | 6,330,000 | ||||||||
[1] | Dividends paid per common share or common share equivalent were $.72, $.68 and $.60, respectively, for the years ended March 31, 2018, March 25, 2017 and March 26, 2016. | |||||||||
[2] | Includes the receipt of treasury stock in connection with the exercise of stock options and to partially satisfy tax withholding obligations. |
Consolidated Statement Of Chang
Consolidated Statement Of Changes in Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 25, 2017 | Mar. 26, 2016 | |
Consolidated Statements of Changes in Shareholders' Equity [Abstract] | |||
Common stock cash dividends per share | $ 0.72 | $ 0.68 | $ 0.60 |
Pension liability adjustment - pre-tax | $ (558) | $ 2,203 | $ 73 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 25, 2017 | Mar. 26, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 63,935 | $ 61,526 | $ 66,805 |
Adjustments to reconcile net income to net cash provided by operating activities - | |||
Depreciation and amortization | 49,335 | 44,629 | 39,769 |
Stock-based compensation expense | 2,858 | 2,483 | 2,750 |
Excess tax benefits from share-based payment arrangements | (8) | ||
Net change in deferred income taxes | 15,485 | 11,256 | 6,589 |
Gain on bargain purchase | (13) | ||
(Gain) loss on disposal of assets | (1,198) | 85 | (41) |
Change in operating assets and liabilities (excluding acquisitions) | |||
Trade receivables | (88) | (74) | (1,477) |
Inventories | (8,399) | 5,044 | 1,555 |
Other current assets | (4,076) | (2,879) | (6,847) |
Other non-current assets | 1,863 | 5,680 | 2,886 |
Trade payables | 5,151 | 9,605 | 7,079 |
Accrued expenses | (1,582) | (3,224) | 2,414 |
Federal and state income taxes payable | (658) | 63 | 6,212 |
Other long-term liabilities | (930) | (3,580) | (1,399) |
Long-term income taxes payable | (448) | (679) | 217 |
Total adjustments | 57,300 | 68,409 | 59,699 |
Net cash provided by operating activities | 121,235 | 129,935 | 126,504 |
Cash flows from investing activities: | |||
Capital expenditures | (39,122) | (34,640) | (36,834) |
Acquisitions, net of cash acquired | (23,439) | (142,567) | (49,018) |
Proceeds from the disposal of assets | 4,071 | 1,583 | 2,625 |
Net cash used for investing activities | (58,490) | (175,624) | (83,227) |
Cash flows from financing activities: | |||
Proceeds from borrowings | 344,843 | 470,027 | 336,942 |
Principal payments on long-term debt, capital leases and financing obligations | (395,521) | (404,303) | (366,707) |
Exercise of stock options | 4,816 | 3,492 | 8,602 |
Excess tax benefits from share-based payment arrangements | 8 | ||
Dividends paid | (23,969) | (22,517) | (19,687) |
Deferred financing costs | (2,180) | ||
Net cash (used for) provided by financing activities | (69,831) | 46,699 | (43,022) |
(Decrease) increase in cash | (7,086) | 1,010 | 255 |
Cash at beginning of year | 8,995 | 7,985 | 7,730 |
Cash at end of year | $ 1,909 | $ 8,995 | $ 7,985 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2018 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES Background Monro, Inc. and its wholly owned subsidiaries, Monro Service Corporation and Car-X, LLC (together, “Monro”, the “Company”, “we”, “us”, or “our”), are engaged principally in providing automotive undercar repair and tire sales and services in the United States. Monro had 1,150 Company-operated stores, 102 franchised locations, five wholesale locations, two retread facilities and two dealer-operated automotive repair centers located in 27 states as of March 31, 2018. Monro’s operations are organized and managed in one operating segment . The internal management financial reporting that is the basis for evaluation in order to assess performance and allocate resources by our chief operating decision maker consists of consolidated data that includes the results of our retail, commercial and wholesale locations. As such, our one operating segment reflects how our operations are managed, how resources are allocated, how operating performance is evaluated by senior management and the structure of our internal financial reporting. Accounting estimates The accompanying Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles. The preparation of financial statements in conformity with such principles requires the use of estimates by management during the reporting period. Actual results could differ from those estimates. Fiscal year Monro reports its results on a 52/53 week fiscal year ending on the last Saturday of March of each year. The following are the dates represented by each fiscal period: “Year ended Fiscal March 2018”: March 26, 2017 – March 31, 2018 (53 weeks) “Year ended Fiscal March 2017”: March 27, 2016 – March 25, 2017 (52 weeks) “Year ended Fiscal March 2016”: March 29, 2015 – March 26, 2016 (52 weeks) Consolidation The Consolidated Financial Statements include Monro, Inc. and its wholly owned subsidiaries, Monro Service Corporation and Car-X, LLC, after the elimination of intercompany transactions and balances. Revenue recognition Sales are recorded upon completion of automotive undercar repair, tire delivery and tire services provided to customers. The following was Monro’s sales mix for fiscal 2018, 2017 and 2016: Year Ended Fiscal March 2018 2017 2016 Brakes 13 % 13 % 15 % Exhaust 2 2 3 Steering 8 9 10 Tires 50 49 45 Maintenance 27 27 27 Total 100 % 100 % 100 % Revenue from the sale of tire road hazard warranty agreements is recognized on a straight-line basis over the contract period or other method when costs are not incurred ratably. Under various arrangements, we receive from certain tire vendors a delivery commission and reimbursement for the cost of the tire that we may deliver to customers on behalf of the tire vendor. The commission we earn from these transactions is as an agent and the net amount retained is recorded as sales. Cash equivalents We consider all highly liquid instruments with original maturities of three months or less to be cash equivalents. Inventories Our inventories consist of automotive parts (including oil) and tires. Inventories are valued at the lower of cost and net realizable value using the first-in, first-out (FIFO) method. Barter credits We value barter credits at the fair market value of the inventory surrendered, as determined by reference to price lists for buying groups and jobber pricing. We use these credits primarily to pay vendors for purchases (mainly inventory vendors for the purchase of parts, oil and tires) or to purchase other goods or services from the barter company such as advertising. Property, plant and equipment Property, plant and equipment are stated at cost. Depreciation of property, plant and equipment is provided on a straight-line basis. Buildings and improvements related to owned locations are depreciated over lives varying from 10 to 39 years; machinery, fixtures and equipment over lives varying from 3 to 15 years; and vehicles over lives varying from 5 to 10 years. Computer hardware and software is depreciated over lives varying from 3 to 7 years. Buildings and improvements related to leased locations are depreciated over the shorter of the asset’s useful life or the reasonably assured lease term, as defined in the accounting guidance on leases. When property is sold or retired, the cost and accumulated depreciation are eliminated from the accounts and a gain or loss is recorded in the Consolidated Statements of Comprehensive Income. Expenditures for maintenance and repairs are expensed as incurred. Long-lived assets We evaluate the ability to recover long-lived assets whenever events or circumstances indicate that the carrying value of the asset may not be recoverable. In the event assets are impaired, losses are recognized to the extent the carrying value exceeds the fair value. In addition, we report assets to be disposed at the lower of the carrying amount and the fair market value less costs to sell. Store opening and closing costs New store opening costs are charged to expense in the fiscal year when incurred. When we close a store, the estimated unrecoverable costs, including the remaining lease obligation net of sublease income, if any, are charged to expense. Leases Financing Obligations – We are involved in the construction of leased stores. In some cases, we are responsible for construction cost overruns or non-standard tenant improvements. As a result of this involvement, we are deemed the “owner” for accounting purposes during the construction period, requiring us to capitalize the construction costs on our Consolidated Balance Sheet. Upon completion of the project, we perform a sale-leaseback analysis pursuant to guidance on accounting for leases to determine if we can remove the assets from our Consolidated Balance Sheet. For some of these leases, we are considered to have “continuing involvement”, which precludes us from derecognizing the assets from our Consolidated Balance Sheet when construction is complete. In conjunction with these leases, we capitalize the construction costs on our Consolidated Balance Sheet and also record financing obligations representing payments owed to the landlord. We do not report rent expense for the properties which are owned for accounting purposes. Rather, rental payments under the lease are recognized as a reduction of the financing obligation and as interest expense. Since we often assume leases in acquisition transactions, the prior accounting by the seller who was involved in the construction of leased stores passes to us. Additionally, we may incur other financing obligations in connection with the accounting for acquisitions. Capital Leases – Some of our property is held under capital leases. These assets are included in property, plant and equipment and depreciated over the term of the lease. We do not report rent expense for capital leases. Rather, rental payments under the lease are recognized as a reduction of the capital lease obligation and interest expense. Operating Leases – All other leases are considered operating leases. Rent expense, including rent escalations, is recognized on a straight-line basis over the reasonably assured lease term, as defined in the accounting guidance on leases. Generally, the lease term is the base lease term plus certain renewal option periods for which renewal is reasonably assured. Goodwill and intangible assets We have a history of growth through acquisitions. Assets and liabilities of acquired businesses are recorded at their estimated fair values as of the date of acquisition. Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. The carrying value of goodwill is subject to annual impairment reviews in accordance with accounting guidance on goodwill, which we perform in the third quarter of the fiscal year. Impairment reviews may also be triggered by any significant events or changes in circumstances affecting our business. We have one reporting unit which encompasses all operations including new acquisitions. We perform a qualitative assessment to determine if it is more likely than not that the fair value is less than the carrying value of goodwill. The qualitative assessment includes a review of business changes, economic outlook, financial trends and forecasts, growth rates, industry data, market capitalization and other relevant qualitative factors. If the qualitative factors are triggered, we perform a two-step process. The first step is to compare the fair value of our reporting unit to the book value of our reporting unit. If the fair value is less than its carrying value, the second step of the impairment test must be performed in order to determine the amount of impairment loss, if any. The second step compares the implied fair value of goodwill with the carrying amount of that goodwill. If the carrying amount of goodwill exceeds its implied fair value, an impairment charge is recognized in an amount equal to that excess. The loss recognized cannot exceed the carrying amount of goodwill. Intangible assets primarily represent allocations of purchase price to identifiable intangible assets of acquired businesses and are amortized over their estimated useful lives. All intangibles and other long-lived assets are reviewed when events or changes in circumstances indicate that the asset’s carrying value may not be recoverable. If such indicators are present, it is determined whether the sum of the estimated undiscounted future cash flows attributable to such assets is less than their carrying amounts. No such indicators were present in fiscal 2018, 2017 or 2016. A deterioration of macroeconomic conditions may not only negatively impact the estimated operating cash flows used in our cash flow models, but may also negatively impact other assumptions used in our analyses, including, but not limited to, the estimated cost of capital and/or discount rates. Additionally, as discussed above, in accordance with accounting guidance, we are required to ensure that assumptions used to determine fair value in our analyses are consistent with the assumptions a hypothetical market participant would use. As a result, the cost of capital and/or discount rates used in our analyses may increase or decrease based on market conditions and trends, regardless of whether our actual cost of capital has changed. Therefore, we may recognize an impairment of an intangible asset or assets even though realized actual cash flows are approximately equal to or greater than its previously forecasted amounts. As a result of our annual qualitative assessment performed in the third quarter of fiscal 2018, there were no impairments. There have been no triggering events during the fourth quarter of fiscal 2018. Self-insurance reserves We are largely self-insured with respect to workers’ compensation, general liability and employee medical claims. In order to reduce our risk and better manage our overall loss exposure, we purchase stop-loss insurance that covers individual claims in excess of the deductible amounts, and caps total losses in a fiscal year. We maintain an accrual for the estimated cost to settle open claims as well as an estimate of the cost of claims that have been incurred but not reported. These estimates take into consideration the historical average claim volume, the average cost for settled claims, current trends in claim costs, changes in our business and workforce, and general economic factors. These accruals are reviewed on a quarterly basis, or more frequently if factors dictate a more frequent review is warranted. For more complex reserve calculations, such as workers’ compensation, we use the services of an actuary on an annual basis to assist in determining the required reserve for open claims. Warranty We provide an accrual for estimated future warranty costs for parts that we install based upon the historical relationship of warranty costs to sales. Warranty expense related to all product warranties at and for the fiscal years ended March 2018, 2017 and 2016 was not material to our financial position or results of operations. See additional discussion of tire road hazard warranty agreements under the “Revenue recognition” section of this footnote. Comprehensive income As it relates to Monro, comprehensive income is defined as net earnings as adjusted for pension liability adjustments and is reported net of related taxes in the Consolidated Statements of Comprehensive Income and in the Consolidated Statements of Changes in Shareholders’ Equity. Income taxes Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using tax rates based on currently enacted rules and legislation and anticipated rates that will be in effect when the differences are expected to reverse. The accounting guidance for uncertainties in income tax prescribes a comprehensive model for the financial statement recognition, measurement, presentation, and disclosure of uncertain tax positions taken or expected to be taken in income tax returns. Monro recognizes a tax benefit from an uncertain tax position in the financial statements only when it is more likely than not that the position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits and a consideration of the relevant taxing authority's administrative practices and precedents. We recognized the income tax effects of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) in our fiscal 2018 Consolidated Financial Statements in accordance with Staff Accounting Bulletin No. 118, which provides SEC staff guidance for the application of ASC Topic 740, Income Taxes, and the accounting generally required to be completed in the reporting period in which the Tax Act was enacted. Note 7 of the Consolidated Financial Statements provides additional information. Treasury stock Treasury stock is accounted for using the par value method. During the year ended March 26, 2016, Monro’s then Chief Executive Officer surrendered 32,000 shares of Monro’s Common Stock at fair market value to pay the exercise price and the related taxes on the exercise of 89,000 stock options. Additionally, Monro’s then Executive Chairman surrendered 100,000 shares of Common Stock at fair market value to pay the exercise price and to satisfy tax withholding obligations on the exercise of 150,000 stock options. There was no activity for the former or current Chief Executive Officer or former Executive Chairman during the years ended March 31, 2018 and March 25, 2017. Stock-based compensation We provide stock-based compensation through non-qualified stock options, restricted stock awards and restricted stock units. We measure compensation cost arising from the grant of share-based payments to an employee at fair value, and recognize such cost in income over the period during which the employee is required to provide service in exchange for the award, usually the vesting period. The fair value of each option award is estimated on the date of grant primarily using the Black-Scholes option valuation model. The assumptions used to estimate fair value require significant judgment and are subject to change in the future due to factors such as employee exercise behavior, stock price trends, and changes to type or provisions of stock-based awards. Any material change in one or more of these assumptions could have an impact on the estimated fair value of a future award. The fair value of restricted stock awards and restricted stock units (collectively “restricted stock”) is determined based on the stock price at the date of grant. The Company is required to estimate forfeitures and only record compensation costs for those awards that are expected to vest. The assumptions for forfeitures were determined based on type of award and historical experience. Forfeiture assumptions are adjusted at the point in time a significant change is identified, with any adjustment recorded in the period of change, and the final adjustment at the end of the requisite service period to equal actual forfeitures. We recognize compensation expense related to stock options and restricted stock using the straight-line approach. Option awards and restricted stock generally vest equally over the service period established in the award, typically four years. Earnings per common share Basic earnings per common share are calculated by dividing income available to common shareholders, after deducting preferred stock dividends, by the weighted average number of shares of common stock outstanding. Diluted earnings per common share are calculated by dividing net income by the weighted average number of shares of common stock and equivalents outstanding. Common stock equivalents represent shares issuable upon the assumed exercise of stock options. Advertising We expense the production costs of advertising the first time the advertising takes place, except for direct response advertising which is capitalized and amortized over its expected period of future benefits. Direct response advertising consists primarily of coupons for Monro’s services. The capitalized costs of this advertising are amortized over the period of the coupon’s validity, which is typically two months. Prepaid advertising at March 31, 2018 and March 25, 2017, and advertising expense for the fiscal years ended March 2018, 2017 and 2016, were not material to these financial statements. Vendor rebates and cooperative advertising credits We account for vendor rebates and cooperative advertising credits as a reduction of the cost of products purchased, except where the rebate or credit is a reimbursement of costs incurred to sell the vendor’s product, in which case it is offset against the costs incurred. Guarantees At the time we issue a guarantee, we recognize an initial liability for the fair value, or market value, of the obligation we assume under that guarantee. Monro has guaranteed certain lease payments, primarily related to franchisees, amounting to $4.4 million. This amount represents the maximum potential amount of future payments under the guarantees as of March 31, 2018. The leases are guaranteed through April 2020. In the event of default by the franchise owner, Monro generally retains the right to assume the lease of the related store, enabling Monro to re-franchise the location or to operate that location as a Company-operated store. We have recorded a liability related to anticipated defaults under the foregoing leases of $.2 million and $.6 million as of March 31, 2018 and March 25, 2017, respectively. Recent accounting pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance for the reporting of revenue from contracts with customers. This guidance provides guidelines a company will apply to determine the measurement of revenue and timing of when it is recognized. Additional guidance has subsequently been issued to amend or clarify the reporting of revenue from contracts with customers. The guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017. Early adoption was permitted, but we did not early adopt this guidance. We will adopt this guidance in the first quarter of fiscal 2019 using the modified retrospective method. We expect adoption to impact the deferral of revenue generated by the sale of an extended warranty and to increase footnote disclosures. The guidance will not materially affect our consolidated net earnings, financial position or cash flows. In February 2016, the FASB issued new accounting guidance related to leases. This guidance establishes a right of use (“ROU”) model that requires a lessee to record a ROU asset and lease liability on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Currently the new lease standard to be adopted requires using a modified retrospective transition approach for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. However, the FASB has proposed an additional transition method, in addition to the existing requirements, to transition to the new lease standard by recognizing a cumulative-effect adjustment to retained earnings in the period of adoption. Prior periods would not be restated. We are awaiting finalization of the alternatives for transition to the new standard before deciding upon a method of adoption. Early adoption is permitted, but we have not early adopted this guidance. We expect that the new lease standard will have a material impact on our Consolidated Financial Statements. While we are continuing to assess the effects of adoption, we currently believe the most significant changes relate to the recognition of new ROU assets and lease liabilities on the Consolidated Balance Sheet for real property operating leases as approximately 50% of our store leases and all of our land leases are currently not recorded on our balance sheet. We expect that substantially all of our operating lease commitments disclosed in Note 11, "Operating Lease and Other Commitments", to the Consolidated Financial Statements will be subject to the new guidance and will be recognized as operating lease liabilities and ROU assets upon adoption. We do not anticipate any significant changes in the volume of our leasing activity up until the period of adoption. In March 2016, the FASB issued new accounting guidance intended to simplify various aspects related to accounting for share-based payments and their presentation in the financial statements. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2016. We adopted this guidance during the first quarter of fiscal 2018. Amendments to this guidance related to accounting for excess tax benefits and tax deficiencies have been adopted prospectively and had an immaterial impact on the Consolidated Statement of Comprehensive Income for fiscal year ended March 31, 2018. Excess tax benefits related to share-based payments are now included in operating cash flows rather than financing cash flows. This change has been applied prospectively in accordance with the guidance and prior periods have not been adjusted. We have previously classified cash paid for tax withholding purposes as a financing activity in the statement of cash flows. Therefore, there is no change related to this requirement. The amendments allow for a one-time accounting policy election to either account for forfeitures as they occur or continue to estimate forfeitures as required by current guidance. We have elected to continue estimating forfeitures through applying a forfeiture rate. In August 2016, the FASB issued new accounting guidance related to cash flow classification. This guidance clarifies and provides specific guidance on eight cash flow classification issues that are not addressed by current generally accepted accounting principles (“GAAP”) and thereby reduce the current diversity in practice. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017. Early adoption was permitted, but we did not early adopt this guidance. This guidance is not expected to have a material impact on our Consolidated Financial Statements. In January 2017, the FASB issued new accounting guidance which clarifies the definition of a business, particularly when evaluating whether transactions should be accounted for as acquisitions or dispositions of assets or businesses. This guidance provides a screen to determine when a set of assets and activities (collectively referred to as a “set”) is not a business. This screen requires that when substantially all of the fair value of the assets is concentrated in a single identifiable asset or group of similar identifiable assets, the set is not a business. If the screen is not met, the guidance provides a framework to evaluate whether both an input and a substantive process are present to be considered a business. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017. Early adoption was permitted for certain transactions, but we did not early adopt this guidance. This guidance is not expected to have a material impact on our Consolidated Financial Statements. In January 2017, the FASB issued new accounting guidance simplifying the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test, which required the determination of an implied fair value of goodwill. Under this guidance, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. This guidance is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and should be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We have not early adopted this guidance. This guidance is not expected to have a material impact on our Consolidated Financial Statements. In March 2017, the FASB issued accounting guidance related to the presentation of net periodic pension cost and net periodic postretirement benefit cost. This guidance requires employers to present the service cost component of the net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. The other components of net benefit cost are to be presented separately from the service cost component and outside of any subtotal of income from operations. Employers will have to disclose the line(s) used to present the other components of net periodic benefit cost, if the components are not presented separately in the income statement. This guidance is effective for fiscal years and interim periods beginning after December 15, 2017, and should be applied retrospectively. Early adoption was permitted, but we did not early adopt this guidance. This guidance is not expected to have a material impact on our Consolidated Financial Statements. In May 2017, the FASB issued new accounting guidance which clarifies when to account for a change to the terms or conditions of a share based payment award as a modification. Under this guidance, modification is required only if the fair value, the vesting conditions, or the classification of an award as equity or liability changes as a result of the change in terms or conditions. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017. Early adoption was permitted, but we did not early adopt this guidance. This guidance is not expected to have a material impact on our Consolidated Financial Statements. In February 2018, the FASB issued new accounting guidance related to the reclassification of certain tax effects from accumulated other comprehensive income (AOCI). This guidance allows for the reclassification of the disproportionate tax effects caused by the Tax Act to retained earnings. Under U.S. GAAP, the effects of tax law changes on deferred tax balances, including adjustments to deferred taxes originally recorded to AOCI, are recorded as a component of income tax expense. Adjusting deferred tax balances related to items originally recorded in AOCI through income tax expense resulted in a remaining AOCI balance that was disproportionate to the amounts that would have been recorded through net income in future periods. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2018. Early adoption is permitted. We have adopted this guidance in fiscal 2018 and the new guidance allowed us to reclassify $.7 million of disproportionate (or stranded) amounts related to the Tax Act to Retained Earnings. Other recent authoritative guidance issued by the FASB (including technical corrections to the Accounting Standards Codification) and the Securities and Exchange Commission did not, or are not expected to have a material effect on Monro’s Consolidated Financial Statements. |
Acquisitions
Acquisitions | 12 Months Ended |
Mar. 31, 2018 | |
Acquisitions [Abstract] | |
Acquisitions | NOTE 2 – ACQUISITIONS Monro’s acquisitions are strategic moves in our plan to fill in and expand our presence in our existing and contiguous markets, and leverage fixed operating costs such as distribution, advertising and administration. Acquisitions in this footnote include acquisitions of five or more locations as well as acquisitions of one to four locations that are part of the Company’s greenfield store growth strategy. Subsequent Events On May 13, 2018 , we acquired twelve retail tire and automotive repair stores and one retread facility located in Tennessee, as well as four wholesale locations in North Carolina, Tennessee and Virginia from Free Service Tire Company, Inc. These locations operate under the Free Service Tire name. The acquisition was financed through our existing credit facility. On April 1, 2018 , we acquired four retail tire and automotive repair stores located in Minnesota from Liberty Auto Group, Inc. These stores operate under the Car-X name. The acquisition was financed through our existing credit facility. Fiscal 2018 During fiscal 2018, we acquired the following businesses for an aggregate purchase price of $22.6 million. The acquisitions were financed through our existing credit facility. The results of operations for these acquisitions are included in our financial results from the respective acquisition dates. · On March 4, 2018 , we acquired seven retail tire and automotive repair stores located in Kentucky, Ohio, Virginia and West Virginia from Appalachian Tire Products, Inc. These stores operate under the Mr. Tire name. · On March 4, 2018 , we acquired two retail tire and automotive repair stores located in Illinois from Mattoon Muffler, Inc. and Charleston Muffler, Inc. These stores operate under the Car- X name. · On March 4, 2018 , we acquired one retail tire and automotive repair store located in Vermont from City Tire Co., Inc. This store operates under the TWC name. · On March 1, 2018 , we acquired one retail tire and automotive repair store located in Illinois from Devenir Enterprises, Inc. This store operates under the Car- X name. · On January 14, 2018 , we acquired three retail tire and automotive repair stores located in Pennsylvania from Valley Tire Co., Inc. These stores operate under the Mr. Tire name. · On December 17, 2017 , we acquired one retail tire and automotive repair store located in Indiana from MLR, Incorporated. This store operates under the Car-X name. · On December 10, 2017 , we acquired two retail tire and automotive repair stores located in Pennsylvania from TriGar Tire & Auto Service Center, LLC. One store operates under the Monro name and one store operates under the Mr. Tire name. · On August 13, 2017 , we acquired eight retail tire and automotive repair stores located in Indiana and Illinois from Auto MD, LLC. These stores operate under the Car-X name. · On July 30, 2017 , we acquired 13 retail tire and automotive repair stores in Michigan, 12 of which were operating as Speedy Auto Service and Tire dealer locations, from UVR, Inc. One of the acquired stores was not opened by Monro. These stores operate under the Monro name. · On July 9, 2017 , we acquired one retail tire and automotive repair store located in North Carolina from Norman Young Tires, Inc. This store operates under the Treadquarters name. · On June 25, 2017 , we acquired one retail tire and automotive repair store located in Illinois from D&S Pulaski, LLC. This store operates under the Car-X name. · On June 11, 2017 , we acquired two retail tire and automotive repair stores located in Minnesota and Wisconsin from J & R Diversified, Inc. These stores operate under the Car-X name. · On June 11, 2017 , we acquired one retail tire and automotive repair store located in Ohio from Michael N. McGroarty, Inc. This store operates under the Mr. Tire name. · On June 2, 2017 , we acquired one retail tire and automotive repair store located in Connecticut from Tires Plus LLC. This store operates under the Monro name. · On May 21, 2017 , we acquired one retail tire and automotive repair store located in Ohio from Bob Sumerel Tire Co., Inc. This store operates under the Mr. Tire name. · On April 23, 2017 , we acquired one retail tire and automotive repair store located in Florida from Collier Automotive Group, Inc. This store operates under The Tire Choice name. These acquisitions resulted in goodwill related to, among other things, growth opportunities, synergies and economies of scale expected from combining these businesses with ours, as well as unidentifiable intangible assets. All of the goodwill is expected to be deductible for tax purposes. We have recorded finite-lived intangible assets at their estimated fair value related to favorable leases and customer lists. We expensed all costs related to acquisitions during fiscal 2018. The total costs related to completed acquisitions were $.5 million for the year ended March 31, 2018. These costs are included in the Consolidated Statements of Comprehensive Income primarily under operating, selling, general and administrative expenses. Sales and net income for the fiscal 2018 acquired locations totaled $14.8 million and $.1 million, respectively, for the period from acquisition date through March 31, 2018. The net income of $.1 million includes an allocation of certain traditional corporate related items, including vendor rebates, interest expense and the provision for income taxes. Supplemental pro forma information for the current or prior reporting periods has not been presented due to the impracticability of obtaining detailed, accurate or reliable data for the periods the acquired entities were not owned by Monro. The preliminary fair values of identifiable assets acquired and liabilities assumed were based on preliminary valuation data and estimates. The excess of the net purchase price over the net tangible and intangible assets acquired was recorded as goodwill. The preliminary allocation of the aggregate purchase price as of March 31, 2018 was as follows: As of Acquisition Date (Dollars in thousands) Inventories $ 1,154 Other current assets 219 Property, plant and equipment 9,555 Intangible assets 4,359 Other non-current assets 7 Long-term deferred income tax assets 3,028 Total assets acquired 18,322 Other current liabilities 1,617 Long-term capital leases and financing obligations 13,707 Other long-term liabilities 209 Total liabilities assumed 15,533 Total net identifiable assets acquired $ 2,789 Total consideration transferred $ 22,614 Less: total net identifiable assets acquired 2,789 Goodwill $ 19,825 The following are the intangible assets acquired and their respective fair values and weighted average useful lives. As of Acquisition Date Weighted Dollars Average in thousands Useful Life Favorable leases $ 2,934 10 years Customer lists 1,425 7 years Total $ 4,359 9 years We continue to refine the valuation data and estimates related to inventory, intangible assets, real estate, real property leases and certain liabilities for the fiscal 2018 acquisitions and expect to complete the valuations no later than the first anniversary date of the respective acquisition. We anticipate that adjustments will continue to be made to the fair values of identifiable assets acquired and liabilities assumed and those adjustments may or may not be material. Fiscal 2017 During fiscal 2017, we acquired the following businesses for an aggregate purchase price of $141.8 million. The acquisitions were financed through our existing credit facility. The results of operations for these acquisitions are included in Monro’s financial results from the respective acquisition dates. · On February 26, 2017 , we acquired 16 retail tire and automotive repair stores located in Illinois and Iowa from Nona, Inc., a Car-X franchisee. These stores operate under the Car-X name. · On February 5, 2017 , we acquired two retail tire and automotive repair stores located in North Carolina and Virginia from Thrifty Tire of Roxboro, LLC. These stores operate under the Mr. Tire name. · On October 16, 2016 , we acquired one retail tire and automotive repair store located in Rhode Island from Hamel Tire Center, Inc. This store operates under the Monro name. · On October 2, 2016 , we acquired three retail tire and automotive repair stores located in Ohio from Parkway D/C Enterprises, Inc. These stores operate under the Mr. Tire name. · On September 19, 2016 , we acquired one retail tire and automotive repair store located in Florida from Florida Tire Service, LLC. This store operates under The Tire Choice name. · On September 18, 2016 , we acquired two retail tire and automotive repair stores located in Michigan from Davco Development Company and Ricketts, Inc. These stores operate under the Monro name. · On September 11, 2016 , we acquired 26 retail tire and automotive repair stores and one retread facility located in North Carolina, as well as four wholesale locations in North Carolina, South Carolina and Tennessee, from Clark Tire & Auto, Inc. These stores operate under the Mr. Tire name. The wholesale locations and retread facility operate under the Tires Now name. · On July 18, 2016 , we acquired one retail tire and automotive repair store located in Indiana from NTI, LLC. This store operates under the Car-X name. · On July 17, 2016 , we acquired one retail tire and automotive repair store located in Georgia from Kwik-Fit Tire & Service. This store operates under the Mr. Tire name. · On July 10, 2016 , we acquired four retail tire and automotive repair stores located in Minnesota from Task Holdings, Inc. and Autopar, Inc. These stores operate under the Car-X name. · On June 26, 2016 , we acquired one retail tire and automotive repair store located in Michigan from Harlow Tire Company. This store operates under the Monro name. · On June 19, 2016 , we acquired two retail tire and automotive repair stores located in New Hampshire from Express Tire Centers, LLC. These stores operate under the Tire Warehouse name. · On May 8, 2016 , we acquired one retail tire and automotive repair store located in Florida from Pioneer Tire Pros. This store operates under The Tire Choice name. · On May 1, 2016 , we acquired 29 retail tire and automotive repair stores and one retread facility located in Florida from McGee Tire Stores, Inc. These stores operate primarily under The Tire Choice name. The retread facility operates under the McGee Tire name. These acquisitions resulted in goodwill related to, among other things, growth opportunities, synergies and economies of scale expected from combining these businesses with ours, and unidentifiable intangible assets. All of the goodwill is expected to be deductible for tax purposes. We have recorded finite-lived intangible assets at their estimated fair value related to customer lists, favorable leases and trade names. We expensed all costs related to acquisitions during fiscal 2017. The total costs related to completed acquisitions were $1.0 million for the year ended March 25, 2017. These costs are included in the Consolidated Statements of Comprehensive Income primarily under operating, selling, general and administrative expenses. Sales and net loss for the fiscal 2017 acquired locations totaled $104.9 million and approximately ( $1.0 ) million, respectively, for the period from acquisition date through March 25, 2017. The net loss includes an allocation of certain traditional corporate related items, including vendor rebates, interest expense and the provision for income taxes. Supplemental pro forma information for the current or prior reporting periods has not been presented due to the impracticability of obtaining detailed, accurate or reliable data for the periods the acquired entities were not owned by Monro. We finalized the purchase accounting relative to the fiscal 2017 acquisitions during fiscal 2018. As a result of the final purchase price allocations, certain of the fair value amounts previously estimated were adjusted during the measurement period. These measurement period adjustments related to updated valuation reports and appraisals received from our external valuation specialists, as well as revisions to internal estimates. The changes in estimates recorded in fiscal 2018 include an increase in property, plant and equipment of $1.4 million; a decrease in intangible assets of $2.2 million; a decrease in long-term deferred income tax assets of $.3 million; a decrease in other current liabilities of $.1 million; an increase in long-term capital leases and financing obligations of $.2 million; and an increase in total other liabilities of $.1 million. The measurement period adjustments resulted in an increase to goodwill of $1.3 million. These adjustments were not material to the Consolidated Statements of Comprehensive Income for the fiscal years ended March 31, 2018 and March 25, 2017. We have recorded the identifiable assets acquired and liabilities assumed at their values as of their respective acquisition dates (including any measurement prior adjustments), with the remainder recorded as goodwill as follows: As of Acquisition Date (Dollars in thousands) Trade receivables $ 7,005 Inventories 18,350 Other current assets 431 Property, plant and equipment 33,392 Intangible assets 19,233 Other non-current assets 174 Long-term deferred income tax assets 9,054 Total assets acquired 87,639 Warranty reserves 561 Other current liabilities 3,772 Long-term capital leases and financing obligations 41,215 Other long-term liabilities 1,228 Total liabilities assumed 46,776 Total net identifiable assets acquired $ 40,863 Total consideration transferred $ 141,832 Plus: gain on bargain purchase 13 Less: total net identifiable assets acquired 40,863 Goodwill $ 100,982 The total consideration of $141.8 million is comprised of $141.7 million in cash, and a $.1 million payable to the sellers of certain acquired businesses. The payable is being liquidated via equal monthly payments through September 2019. The following are the intangible assets acquired and their respective fair values and weighted average useful lives. As of Acquisition Date Weighted Dollars Average in thousands Useful Life Customer lists $ 9,917 13 years Favorable leases 6,361 14 years Trade names 2,955 17 years Total $ 19,233 14 years |
Other Current Assets
Other Current Assets | 12 Months Ended |
Mar. 31, 2018 | |
Other Current Assets [Abstract] | |
Other Current Assets | NOTE 3 – OTHER CURRENT ASSETS The composition of other current assets is as follows: Year Ended Fiscal March 2018 2017 (Dollars in thousands) Vendor rebates and cooperative advertising credits receivable $ 16,107 $ 14,327 Other 21,106 18,312 $ 37,213 $ 32,639 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | NOTE 4 – PROPERTY, PLANT AND EQUIPMENT The major classifications of property, plant and equipment are as follows: March 31, 2018 March 25, 2017 Assets Under Assets Under Capital Lease/ Capital Lease/ Assets Financing Assets Financing Owned Obligations Total Owned Obligations Total (Dollars in thousands) Land $ 85,843 $ 85,843 $ 83,675 $ 83,675 Buildings and improvements 232,109 $ 171,288 403,397 223,566 $ 147,786 371,352 Equipment, signage and fixtures 242,510 242,510 225,977 225,977 Vehicles 32,380 32,380 28,831 28,831 Construction-in-progress 3,734 3,734 3,164 3,164 596,576 171,288 767,864 565,213 147,786 712,999 Less - Accumulated depreciation and amortization 304,762 46,433 351,195 282,196 36,169 318,365 $ 291,814 $ 124,855 $ 416,669 $ 283,017 $ 111,617 $ 394,634 Depreciation expense totaled $44.3 million, $39.5 million and $36.0 million for the fiscal years ended March 2018, 2017 and 2016, respectively. Amortization expense recorded under capital leases and financing obligations and included in depreciation expense above totaled $12.3 million, $9.5 million and $7.5 million for the fiscal years ended March 2018, 2017 and 2016, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets [Abstract] | |
Goodwill and Intangible Assets | NOTE 5 – GOODWILL AND INTANGIBLE ASSETS The changes in goodwill during fiscal 2018 and 2017 were as follows: Dollars in thousands Balance at March 26, 2016 $ 400,132 Fiscal 2017 acquisitions 99,651 Adjustments to fiscal 2016 purchase accounting 1,953 Balance at March 25, 2017 501,736 Fiscal 2018 acquisitions 19,825 Adjustments to fiscal 2017 purchase accounting 1,331 Balance at March 31, 2018 $ 522,892 The composition of other intangible assets is as follows: Year Ended Fiscal March 2018 2017 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization (Dollars in thousands) Customer lists $ 33,832 $ 19,637 $ 34,489 $ 16,372 Favorable leases 27,656 9,470 25,378 7,764 Trade names 20,852 9,644 20,852 8,358 Franchise agreements 7,220 1,713 7,220 1,167 Other intangible assets 590 543 540 530 Total intangible assets $ 90,150 $ 41,007 $ 88,479 $ 34,191 Monro’s intangible assets are being amortized over their estimated useful lives. The weighted average useful lives of Monro’s intangible assets are approximately 10 years for customer lists, 14 years for favorable leases, 14 years for trade names, 13 years for franchise agreements and five years for other intangible assets. Amortization of intangible assets, excluding amortization of favorable leases included in rent expense, during fiscal 2018, 2017 and 2016 totaled $5.0 million, $5.1 million and $3.8 million, respectively. Estimated future amortization of intangible assets is as follows: Customer lists/ Trade names/ Franchise agreements/ Favorable Year Ending Fiscal March Other Leases (Dollars in thousands) 2019 $ 4,858 $ 2,207 2020 3,899 2,178 2021 3,184 2,145 2022 2,886 1,995 2023 2,631 1,870 |
Long-Term Debt, Capital Leases
Long-Term Debt, Capital Leases And Financing Obligations | 12 Months Ended |
Mar. 31, 2018 | |
Long-Term Debt, Capital Leases And Financing Obligations [Abstract] | |
Long-Term Debt, Capital Leases And Financing Obligations | NOTE 6 – LONG-TERM DEBT, CAPITAL LEASES AND FINANCING OBLIGATIONS Long-term debt, capital leases and financing obligations consist of the following: March 31, March 25, 2018 2017 (Dollars in thousands) Revolving Credit Facility, LIBOR-based (a) $ 148,028 $ 182,297 Note payable, non-interest bearing, due in equal installments through September 2019 80 60 Less – Current portion of long-term debt (40) (20) Long-term debt $ 148,068 $ 182,337 Obligations under capital leases and financing obligations at various interest rates, due in installments through May 2045 $ 246,169 $ 228,444 Less – Current portion of capital leases and financing obligations (18,949) (15,278) Long-term capital leases and financing obligations $ 227,220 $ 213,166 _________________ (a) The London Interbank Offered Rate (LIBOR) at March 31, 2018 was 1.88% . In January 2016, we entered into a new five -year $600 million revolving credit facility agreement currently with eight banks (the “Credit Facility”). The Credit Facility replaced our previous revolving credit facility, as amended, which would have expired in December 2017. Interest only is payable monthly throughout the Credit Facility’s term. The borrowing capacity for the Credit Facility is up to $600 million, and includes an accordion feature permitting us to request an increase in availability of up to an additional $100 million. The Credit Facility bears interest at 75 to 175 basis points over LIBOR. The Credit Facility requires fees payable quarterly throughout the term between .15% and .35% of the amount of the average net availability under the Credit Facility during the preceding quarter. There was $148.0 million outstanding under the Credit Facility at March 31, 2018. We were in compliance with all debt covenants as of March 31, 2018. At March 31, 2018 and March 25, 2017, the interest rate spread paid by the Company was 125 and 100 basis points over LIBOR, respectively. Within the Credit Facility, we have a sub-facility of $80 million for the purpose of issuing standby letters of credit. The line requires fees aggregating 87.5 to 187.5 basis points over LIBOR annually of the face amount of each standby letter of credit, payable quarterly in arrears. There was $29.4 million in an outstanding letter of credit at March 31, 2018. The net availability under the Credit Facility at March 31, 2018 was $422.6 million. Specific terms of the Credit Facility permit the payment of cash dividends not to exceed 50% of the prior year’s net income, and permit mortgages and specific lease financing arrangements with other parties with certain limitations. Additionally, the Credit Facility is not secured by our real property, although we have agreed not to encumber our real property, with certain permissible exceptions. Long-term debt had a carrying amount and a fair value of $148.1 million as of March 31, 2018 , as compared to a carrying amount and a fair value of $182.4 million as of March 25, 2017 . The fair value of long-term debt was estimated based on discounted cash flow analyses using either quoted market prices for the same or similar issues, or the current interest rates offered to Monro for debt with similar maturities. In addition, we have financed certain store properties with capital leases/financing obligations, which amount to $246.2 million at March 31, 2018 and are due in installments through May 2045. We also have a $.1 million payable due in equal installments through September 2019 to the sellers of certain acquired businesses at March 31, 2018. Aggregate debt maturities over the next five years are as follows: Capital Leases/ Financing Obligations Aggregate Imputed All Other Year Ending Fiscal March Amount Interest Debt Total (Dollars in thousands) 2019 $ 37,696 $ (18,747) $ 40 $ 18,989 2020 37,890 (17,492) 40 20,438 2021 38,654 (16,005) 148,028 170,677 2022 38,305 (14,285) 24,020 2023 37,795 (12,273) 25,522 |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2018 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 7 – INCOME TAXES The components of the provision for income taxes are as follows: Year Ended Fiscal March 2018 2017 2016 (Dollars in thousands) Current - Federal $ 20,854 $ 22,040 $ 29,202 State 3,180 2,422 2,825 24,034 24,462 32,027 Deferred - Federal 15,153 10,120 6,216 State 332 1,136 373 15,485 (a) 11,256 6,589 Total $ 39,519 $ 35,718 $ 38,616 _________________ (a) For fiscal 2018, includes $4.7 million related to the Tax Act. On December 22, 2017, U.S. President Trump signed the Tax Act into legislation. The new U.S. tax legislation is subject to a number of provisions, including a reduction of the U.S. federal corporate income tax rate from 35% to 21% (effective January 1, 2018). Other enacted provisions which may impact Monro include limitations on the deductibility of executive compensation beginning January 1, 2018 and the immediate deduction of the cost of certain capital expenditures from taxable income instead of deducting the costs over time. Certain aspects of the new legislation would generally require the accounting to be completed in the period of enactment. However, in response to the complexities of the new legislation, the Securities and Exchange Commission (SEC) staff issued Staff Accounting Bulletin No. 118 (SAB 118) to address the application of U.S. GAAP in situations where a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. The ultimate impact may differ from provisional amounts recorded, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions we have made, and additional regulatory guidance that may be issued. For fiscal 2018, we recorded a net discrete adjustment to income tax expense of approximately $4.7 million primarily from revaluing our net deferred tax assets to reflect the new U.S. federal corporate income tax rate. We believe this calculation is complete except for deferred taxes related to certain equity compensation arrangements and changes in estimates that can result from finalizing the filing of our 2017 U.S. income tax return, which are not anticipated to be material. We will complete the accounting for the impacts of the Tax Act during the measurement period, which will not exceed beyond one year from the enactment date. Deferred tax (liabilities) assets consist of the following: March 31, March 25, 2018 2017 (Dollars in thousands) Goodwill $ (32,290) $ (39,715) Other (645) (968) Total deferred tax liabilities (32,935) (40,683) Property and equipment 25,056 36,980 Insurance reserves 6,769 11,075 Warranty and other reserves 2,978 4,810 Other 9,607 11,863 Total deferred tax assets 44,410 64,728 Net deferred tax assets $ 11,475 $ 24,045 We have $5.4 million of state net operating loss carryforwards available as of March 31, 2018. The carryforwards expire in varying amounts through 2038 . Based on all available evidence, we have determined that it is more likely than not that sufficient taxable income of the appropriate character within the carryforward period will exist for the realization of the tax benefits on existing state net operating loss carryforwards. We believe it is more likely than not that all other future tax benefits will be realized as a result of current and future income. A reconciliation between the U.S. federal statutory tax rate and the effective tax rate reflected in the accompanying financial statements is as follows: Year Ended Fiscal March 2018 2017 2016 Amount Percent Amount Percent Amount Percent (Dollars in thousands) Federal income tax based on statutory tax rate applied to income before taxes (a) $ 32,692 31.6 $ 34,035 35.0 $ 36,897 35.0 State income tax, net of federal income tax benefit 2,218 2.1 2,700 2.8 2,306 2.2 Tax Act (b) 4,707 4.5 — — — — Other (98) — (1,017) (1.1) (587) (0.6) $ 39,519 38.2 $ 35,718 36.7 $ 38,616 36.6 _________________ (a) For fiscal 2018, represents the blended rate of 35% for 9/12 of the year and 21% for 3/12 of the year. (b) Represents the net discrete adjustment to income tax expense from the remeasurement of our net deferred tax assets at the lower U.S. corporate income tax rate. The following is a rollforward of Monro’s liability for income taxes associated with unrecognized tax benefits: Dollars in thousands Balance at March 28, 2015 $ 7,495 Tax positions related to current year: Additions 1,116 Reductions — Tax positions related to prior years: Additions — Reductions (922) Settlements — Lapses in statutes of limitations (760) Balance at March 26, 2016 6,929 Tax positions related to current year: Additions 981 Reductions — Tax positions related to prior years: Additions 66 Reductions (352) Settlements — Lapses in statutes of limitations (732) Balance at March 25, 2017 6,892 Tax positions related to current year: Additions 447 Reductions — Tax positions related to prior years: Additions — Reductions (342) Settlements — Lapses in statutes of limitations (788) Balance at March 31, 2018 $ 6,209 The total amount of unrecognized tax benefits was $6.2 million and $6.9 million at March 31, 2018 and March 25, 2017, respectively, the majority of which, if recognized, would affect the effective tax rate. In the normal course of business, Monro provides for uncertain tax positions and the related interest and penalties, and adjusts its unrecognized tax benefits and accrued interest and penalties and, accordingly, we had approximately $.4 million of interest and penalties associated with uncertain tax benefits accrued as of March 31, 2018 and March 25, 2017. The Company is currently under audit by the Internal Revenue Service for the fiscal 2016 tax year. It is reasonably possible that the examination phase of the audit may conclude in the next 12 months, and that the related unrecognized tax benefits for tax positions taken regarding previously filed tax returns may change from those recorded as liabilities for uncertain tax positions in the Company’s Consolidated Financial Statements as of March 31, 2018. However, based on the status of the examination, it is not possible to estimate the effect of any such change to previously recorded uncertain tax positions. We file U.S. federal income tax returns and income tax returns in various state jurisdictions. Monro’s fiscal 2015 and fiscal 2017 U.S. federal tax years and various state tax years remain subject to income tax examinations by tax authorities. |
Stock Ownership
Stock Ownership | 12 Months Ended |
Mar. 31, 2018 | |
Stock Ownership [Abstract] | |
Stock Ownership | NOTE 8 – STOCK OWNERSHIP Holders of at least 60% of the Class C preferred stock must approve any action authorized by the holders of Common Stock. In addition, there are certain restrictions on the transferability of shares of Class C preferred stock. In the event of a liquidation, dissolution or winding-up of Monro, the holders of the Class C preferred stock would be entitled to receive $1.50 per share out of the assets of Monro before any amount would be paid to holders of Common Stock. The conversion value of the Class C convertible preferred stock was $.064 per share at March 31, 2018 and March 25, 2017. |
Share Based Compensation
Share Based Compensation | 12 Months Ended |
Mar. 31, 2018 | |
Share Based Compensation [Abstract] | |
Share Based Compensation | NOTE 9 – SHARE BASED COMPENSATION We have a long-term incentive plan whereby eligible employees and non-employee directors may be granted non-qualified service condition stock options, non-qualified market condition stock options, restricted stock awards and restricted stock units. We grant stock-based awards to continue to attract and retain employees and to better align employees’ interests with those of our shareholders. Monro issues new shares of Common Stock upon the exercise of stock options. Total stock-based compensation expense included in cost of sales and selling, general and administrative expenses in Monro’s Consolidated Statements of Comprehensive Income for the fiscal years ended March 31, 2018, March 25, 2017 and March 26, 2016 was $2.9 million, $2.5 million and $2.8 million, respectively, and the related income tax benefit for each fiscal year was $1.0 million. As of March 31, 2018, the total unrecognized compensation expense related to all unvested stock-based awards was $7.5 million and is expected to be recognized over a weighted average period of approximately two years. Monro currently grants stock option awards and restricted stock under the 2007 Incentive Stock Option Plan (the “2007 Plan”). The 2007 Plan was authorized by the Board of Directors in June 2007, initially reserving 873,000 shares (as retroactively adjusted for stock splits) of Common Stock for issuance to eligible employees and all non-employee directors. The 2007 Plan was approved by shareholders in August 2007 and was later amended and restated in August 2017. At March 31, 2018, there were a total of 5,001,620 shares authorized for grant under the 2007 Plan (as retroactively adjusted for stock splits), including the shares transferred from previous plans. There were 1,005,670 shares available for grant at March 31, 2018. Non-Qualified Stock Options Generally, employee options vest over a four year period, and have a duration of six to ten years. Outstanding options are exercisable for various periods through March 2024. Assumptions used to estimate compensation expense are determined as follows: · Expected life of an award is based on historical experience and on the terms and conditions of the stock awards granted to employees; · Expected volatility is measured using historical changes in the market price of Monro’s Common Stock; · Risk- free interest rate is equivalent to the implied yield on zero-coupon U.S. Treasury bonds with a remaining maturity equal to the expected term of the awards; · Forfeitures are based substantially on the history of cancellations of similar awards granted by Monro in prior years; and · Dividend yield is based on historical experience and expected future changes. The fair values of the service condition options granted were estimated on the date of their grant using the Black-Scholes option-pricing model with the following weighted-average assumptions: Year Ended Fiscal March 2018 2017 2016 Risk-free interest rate 1.78 % 1.20 % 1.25 % Expected life, in years 4 4 4 Expected volatility 26.1 % 25.9 % 27.2 % Expected dividend yield 1.49 % 1.10 % 0.96 % In fiscal 2018, the Company granted 100,000 options with a market condition vesting and such market condition options granted were estimated on the date of their grant using the Monte Carlo option-pricing model with the following weighted-average assumptions: Year Ended Fiscal March 2018 Risk-free interest rate 1.65 % Expected life, in years 4 Expected volatility 29.4 % Expected dividend yield 1.53 % The weighted average fair value of options granted during fiscal 2018, 2017 and 2016 was $8.84 , $12.17 and $13.10 , respectively. A summary of changes in outstanding stock options is as follows: Weighted Average Exercise Options Price Outstanding At March 28, 2015 $ 34.21 1,518,330 Granted $ 62.28 243,410 Exercised $ 29.59 (549,141) Canceled $ 50.69 (23,808) At March 26, 2016 $ 41.75 1,188,791 Granted $ 62.01 232,560 Exercised $ 31.61 (485,660) Canceled $ 61.20 (39,347) At March 25, 2017 $ 51.67 896,344 Granted $ 48.12 546,080 Exercised $ 35.00 (170,354) Canceled $ 60.87 (64,092) At March 31, 2018 $ 51.95 1,207,978 The total shares exercisable at March 31, 2018, March 25, 2017 and March 26, 2016 were 495,573 , 563,109 and 789,422 , respectively. The weighted average exercise price of all shares exercisable at March 31, 2018 was $52.80 . The weighted average contractual term of all options outstanding at March 31, 2018 and March 25, 2017 was 3.8 years and 3.1 years, respectively. The aggregate intrinsic value of all options (the amount by which the market price of the stock on the date of exercise exceeded the exercise price of the option) outstanding at March 31, 2018 and March 25, 2017 was $5.2 million and $4.9 million, respectively. The weighted average contractual term of all options exercisable at March 31, 2018 and March 25, 2017 was 2.0 years and 2.4 years, respectively. The aggregate intrinsic value of all options exercisable at March 31, 2018 and March 25, 2017 was $2.2 million and $4.8 million, respectively. A summary of the status of and changes in nonvested stock options granted is as follows: Weighted Average Grant-Date Fair Value Options (per Option) Non-vested at March 28, 2015 419,729 $ 9.70 Granted 243,410 $ 13.10 Vested (242,841) $ 10.38 Canceled (20,929) $ 10.18 Non-vested at March 26, 2016 399,369 $ 11.26 Granted 232,560 $ 12.17 Vested (266,112) $ 10.48 Canceled (32,582) $ 12.79 Non-vested at March 25, 2017 333,235 $ 12.37 Granted 546,080 $ 8.84 Vested (119,445) $ 12.04 Canceled (47,465) $ 12.53 Non-vested at March 31, 2018 712,405 $ 9.72 The following table summarizes information about stock options outstanding at March 31, 2018: Options Outstanding Options Exercisable Weighted Weighted Weighted Average Average Shares Average Range of Shares Remaining Exercise Under Exercise Exercise Prices Under Option Life Price Option Price $11.76 - $46.99 118,465 1.03 $ 35.97 110,965 $ 35.36 $47.00 - $48.28 442,300 5.36 $ 47.26 500 $ 47.30 $48.29 - $57.25 305,718 3.17 $ 53.19 154,825 $ 52.67 $57.26 - $75.76 341,495 3.16 $ 62.48 229,283 $ 61.34 During the fiscal years ended March 31, 2018, March 25, 2017 and March 26, 2016, the fair value of awards vested under Monro’s stock plans was $1.4 million, $2.8 million and $2.5 million, respectively. The aggregate intrinsic value is based on Monro’s closing stock price of $53.60 , $52.15 and $69.68 as of the last trading day of the periods ended March 31, 2018, March 25, 2017 and March 26, 2016, respectively. The aggregate intrinsic value of options exercised during the fiscal years ended March 31, 2018, March 25, 2017 and March 26, 2016 was $2.8 million, $13.3 million and $22.3 million, respectively. Cash received from option exercises under all stock option plans was $4.8 million, $3.5 million and $8.6 million for the fiscal years ended March 31, 2018, March 25, 2017 and March 26, 2016, respectively. The actual tax benefit realized for the tax deductions from option exercises was $.5 million, $3.5 million and $6.7 million for the fiscal years ended March 31, 2018, March 25, 2017 and March 26, 2016, respectively. Restricted Stock Monro issues restricted stock to certain members of senior management as well as non-employee directors of the Company. Restricted stock units represent shares issued upon vesting in the future whereas restricted stock awards represent shares issued upon grant that are restricted. The fair value for restricted stock units and restricted stock awards is calculated based on the stock price on the date of grant. Restricted stock units do not have voting rights but earn dividends during the vesting period. The recipients of the restricted stock awards have voting rights and earn dividends during the vesting period. The dividends are paid to the recipient at the time the restricted stock becomes vested. If the recipient leaves Monro prior to the vesting date for any reason, the shares of restricted stock and the dividends accrued on those shares will be forfeited and returned to Monro. The restricted stock units and awards vest equally over three or four years. None of the restricted stock was vested as of March 31, 2018. The following table summarizes restricted stock activity for the year ended March 31, 2018: Shares Weighted-Average Grant-Date Fair Value per Share Weighted Average Remaining Vesting Period (in years) Nonvested as of March 25, 2017 — Granted 61,875 $ 47.59 Vested — Forfeited — Nonvested as of March 31, 2018 61,875 $ 47.59 2.48 The aggregate intrinsic value is based on Monro’s closing stock price of $53.60 as of the last trading day of the period ended March 31, 2018. The aggregate intrinsic value of restricted stock during the fiscal year ended March 31, 2018 was $3.3 million. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Mar. 31, 2018 | |
Earnings Per Common Share [Abstract] | |
Earnings Per Common Share | NOTE 10 – EARNINGS PER COMMON SHARE The following is a reconciliation of basic and diluted earnings per common share for the respective years: Year Ended Fiscal March 2018 2017 2016 (Amounts in thousands, except per share data) Numerator for earnings per common share calculation: Net Income $ 63,935 $ 61,526 $ 66,805 Less: Preferred stock dividends (368) (447) (456) Income available to common stockholders $ 63,567 $ 61,079 $ 66,349 Denominator for earnings per common share calculation: Weighted average common shares, basic 32,767 32,413 32,026 Effect of dilutive securities: Preferred stock 510 675 760 Stock options 56 213 567 Restricted stock 8 — — Weighted average common shares, diluted 33,341 33,301 33,353 Basic earnings per common share: $ 1.94 $ 1.88 $ 2.07 Diluted earnings per common share: $ 1.92 $ 1.85 $ 2.00 The computation of diluted earnings per common share for fiscal 2018, 2017 and 2016 excludes the effect of assumed exercise of approximately 1,091,000 , 304,000 and 171,000 of stock options, respectively, as the exercise price of these options was greater than the average market value of our common stock for those periods, resulting in an anti-dilutive effect on diluted earnings per common share. |
Operating Leases
Operating Leases | 12 Months Ended |
Mar. 31, 2018 | |
Operating Leases [Abstract] | |
Operating Leases | NOTE 11 – OPERATING LEASES We lease various facilities under non-cancellable lease agreements which expire at various dates through fiscal 2041. In addition to stated minimum payments, certain real estate leases have provisions for contingent rentals when retail sales exceed specified levels. Generally, the leases provide for renewal for various periods at stipulated rates. Most of the facilities’ leases require payment of property taxes, insurance and maintenance costs in addition to rental payments, and several provide an option to purchase the property at the end of the lease term. In recent years, we have entered into agreements for the sale-leaseback of certain stores. Realized gains are deferred and are credited to income as rent expense adjustments over the lease terms. We have lease renewal options under the real estate agreements at projected future fair market values. Future minimum payments required under non-cancellable leases (including closed stores) are as follows: Less - Sublease Year Ending Fiscal March Leases Income Net (Dollars in thousands) 2019 $ 34,363 $ (78) $ 34,285 2020 30,150 (86) 30,064 2021 25,258 (87) 25,171 2022 20,113 (77) 20,036 2023 14,562 (65) 14,497 Thereafter 35,046 (7) 35,039 Total $ 159,492 $ (400) $ 159,092 Rent expense under operating leases, net of sublease income, totaled $38.9 million, $38.6 million and $36.7 million in fiscal 2018, 2017 and 2016 , respectively, including contingent rentals. Sublease income totaled $.1 million in each of fiscal 2018, 2017 and 2016 . |
Employee Retirement and Profit
Employee Retirement and Profit Sharing Plans | 12 Months Ended |
Mar. 31, 2018 | |
Employee Retirement and Profit Sharing Plans [Abstract] | |
Employee Retirement and Profit Sharing Plans | NOTE 12 – EMPLOYEE RETIREMENT AND PROFIT SHARING PLANS We sponsor a noncontributory defined benefit pension plan for Monro employees and the former Kimmel Automotive, Inc. employees. In fiscal 2005, the previously separate Monro and Kimmel pension plans were merged. The merged plan provides benefits to certain full-time employees who were employed with Monro and with Kimmel prior to April 2, 1998 and May 15, 2001, respectively. Effective as of those dates, each company’s Board of Directors approved plan amendments whereby the benefits of each of the defined benefit plans would be frozen and the plans would be closed to new participants. Prior to these amendments, coverage under the plans began after employees completed one year of service and attained age 21 . Benefits under both plans, and now the merged plan, are based primarily on years of service and employees’ pay near retirement. The funding policy for Monro’s merged plan is consistent with the funding requirements of U.S. federal law and regulations. The measurement date used to determine the pension plan measurements disclosed herein is March 31 for both 2018 and 2017. The funded status of Monro’s defined benefit plan is recognized as an other non-current asset in the Consolidated Balance Sheets as of March 31, 2018 and March 25, 2017, respectively. The funded status of the plan is set forth below: Fiscal March 2018 2017 (Dollars in thousands) Change in Plan Assets: Fair value of plan assets at beginning of year $ 20,702 $ 19,465 Actual return on plan assets 631 2,309 Benefits paid (704) (1,072) Fair value of plan assets at end of year 20,629 20,702 Change in Projected Benefit Obligation: Benefit obligation at beginning of year 20,405 21,373 Interest cost 796 806 Actuarial loss/(gain) 109 (702) Benefits paid (704) (1,072) Benefit obligation at end of year 20,606 20,405 Funded status of plan $ 23 $ 297 The projected and accumulated benefit obligations were equivalent at March 31 for both 2018 and 2017. Amounts recognized in accumulated other comprehensive loss consist of: Year Ended Fiscal March 2018 2017 (Dollars in thousands) Unamortized transition obligation $ 0 $ 0 Unamortized prior service cost 0 0 Unamortized net loss 5,675 5,117 Total $ 5,675 $ 5,117 Changes in plan assets and benefit obligations recognized in other comprehensive (loss) income consist of: Year Ended Fiscal March 2018 2017 (Dollars in thousands) Net transition obligation $ 0 $ 0 Prior service cost 0 0 Net actuarial (loss)/income (558) 2,203 Total $ (558) $ 2,203 Pension (income) expense included the following components: Year Ended Fiscal March 2018 2017 2016 (Dollars in thousands) Interest cost on projected benefit obligation $ 796 $ 806 $ 803 Expected return on plan assets (1,416) (1,332) (1,389) Amortization of unrecognized actuarial loss 336 524 648 Net pension (income) expense $ (284) $ (2) $ 62 The weighted-average assumptions used to determine benefit obligations are as follows: Year Ended Fiscal March 2018 2017 Discount rate 3.89 % 3.98 % The weighted-average assumptions used to determine net periodic pension costs are as follows: Year Ended Fiscal March 2018 2017 2016 Discount rate 3.98 % 3.83 % 3.69 % Expected long-term return on assets 7.00 % 7.00 % 7.00 % The expected long-term rate of return on plan assets is established based upon assumptions related to historical returns and the future expectations for returns for each asset class, as well as the target asset allocation of the pension portfolio. The investment strategy of the plan is to conservatively manage the assets in order to meet the plan’s long-term obligations while maintaining sufficient liquidity to pay current benefits. This is achieved by holding equity investments while investing a portion of assets in long duration bonds to match the long-term nature of the liabilities. Monro’s general target allocation for the plan is 40% fixed income and 60% equity securities. Monro’s asset allocations, by asset category, are as follows at the end of each year: March 31, March 25, 2018 2017 Cash and cash equivalents 1.3 % 1.7 % Fixed income 39.3 % 39.7 % Equity securities 59.4 % 58.6 % Total 100.0 % 100.0 % A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The following table provides fair value measurement information for Monro’s major categories of defined benefit plan assets at March 31, 2018 and March 25, 2017, respectively: Fair Value Measurements at March 31, 2018 Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) (Dollars in thousands) Equity securities: U.S. companies $ 8,062 $ 7,785 $ 277 International companies 4,186 4,186 Fixed income: U.S. corporate bonds 7,505 7,505 International bonds 614 614 Cash equivalents 262 262 Total $ 20,629 $ 11,971 $ 8,658 Fair Value Measurements at March 25, 2017 Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) (Dollars in thousands) Equity securities: U.S. companies $ 8,296 $ 7,984 $ 312 International companies 3,839 3,839 Fixed income: U.S. corporate bonds 7,902 7,902 International bonds 317 317 Cash equivalents 348 348 Total $ 20,702 $ 11,823 $ 8,879 There are no required or expected contributions in fiscal 2019 to the plan. The following pension benefit payments are expected to be paid: Year Ended Fiscal March (Dollars in thousands) 2019 $ 972 2020 1,006 2021 1,059 2022 1,115 2023 1,149 2024 - 2028 6,068 We have a 401(k)/Profit Sharing Plan that covers full-time employees who meet the age and service requirements of the plan. The 401(k) salary deferral option was added to the plan during fiscal 2000. The first employee deferral occurred in March 2000. We make matching contributions consistent with the provisions of the plan. Charges to expense for our matching contributions for fiscal 2018, 2017 and 2016 amounted to approximately $1.0 million, $.8 million and $.7 million, respectively. We may also make annual profit sharing contributions to the plan at the discretion of Monro’s Compensation Committee. We have a deferred compensation plan (the “Deferred Compensation Plan”) to provide an opportunity for additional tax-deferred savings to a select group of management or highly compensated employees. The Deferred Compensation Plan permits participants to defer all or any portion of the compensation that would otherwise be payable to them for the calendar year. In addition, Monro will credit to the participants’ accounts such amounts as would have been contributed to Monro’s 401(k)/Profit Sharing Plan but for the limitations that are imposed under the Internal Revenue Code based upon the participants’ status as highly compensated employees. We may also make such additional discretionary allocations as are determined by the Compensation Committee. The Deferred Compensation Plan is an unfunded arrangement and the participants or their beneficiaries have an unsecured claim against the general assets of Monro to the extent of their Deferred Compensation Plan benefits. We maintain accounts to reflect the amounts owed to each participant. At least annually, the accounts are credited with earnings or losses calculated on the basis of an interest rate or other formula as determined by Monro’s Compensation Committee. The total liability recorded in our financial statements at March 31, 2018 and March 25, 2017 related to the Deferred Compensation Plan was approximately $2.1 million. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 13 – RELATED PARTY TRANSACTIONS We are currently a party to six leases for certain facilities where the lessor is a former officer of Monro or a family member of such former officer, or such former officer or family member has an interest in entities that are lessors. The payments under such operating and capital leases amounted to $.8 million, $.8 million and $.7 million for the fiscal years ended March 2018, 2017 and 2016, respectively. These payments are comparable to rents paid to unrelated parties. No amounts were payable at March 31, 2018 or March 25, 2017. No related party leases exist, other than these six leases, and no new leases are contemplated. For many years, we had a consulting agreement with an investment banking firm associated with a principal shareholder/director of Monro to provide financial advice. The agreement provided for an annual fee of $.3 million, plus reimbursement of out-of-pocket expenses and we incurred, under this agreement, fees of $.2 million during the year ended March 26, 2016. Approximately half of all payments made to the investment banking firm under the consulting agreement were paid to another principal shareholder/director of Monro. In addition, this investment banking firm, from time to time, has provided other investment banking services to us for additional fees. During fiscal 2016, with approval by the independent members of the Board of Directors (excluding the Director associated with this firm), we paid additional fees of $1.0 million to this firm in connection with financial and strategic advisory services that were provided related to three unsuccessful acquisitions. In connection with making this payment, the aforementioned consulting agreement was canceled. |
Supplemental Disclosure of Cash
Supplemental Disclosure of Cash Flow Information | 12 Months Ended |
Mar. 31, 2018 | |
Supplemental Disclosure of Cash Flow Information [Abstract] | |
Supplemental Disclosure of Cash Flow Information | NOTE 14 – SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Significant Non-cash Investing and Financing Activities In connection with the accounting for capital leases and financing obligations, we increased both property, plant and equipment and capital leases and financing obligations by approximately $19.2 million, $14.2 million and $13.3 million for the years ended March 31, 2018 , March 25, 2017 and March 26, 2016 , respectively. Interest and Taxes Paid The following table sets forth the cash paid for interest and income taxes for the years ended March 31, 2018, March 25, 2017 and March 26, 2016: Year Ended Fiscal March 2018 2017 2016 (Dollars in thousands) Cash paid during the year: Interest, net $ 25,795 $ 20,970 $ 15,687 Income taxes, net $ 25,214 $ 24,778 $ 25,322 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | NOTE 15 – COMMITMENTS AND CONTINGENCIES Commitments Payments due by period under long-term debt, other financing instruments and commitments are as follows: Within 1 to 3 to After Total 1 Year 3 Years 5 Years 5 Years (Dollars in thousands) Principal payments on long-term debt $ 148,108 $ 40 $ 148,068 Capital lease commitments/financing obligations 246,169 18,949 43,047 $ 49,542 $ 134,631 Operating lease commitments 159,092 34,285 55,235 34,533 35,039 Other liabilities 3,533 800 1,600 1,133 — Total $ 556,902 $ 54,074 $ 247,950 $ 85,208 $ 169,670 We believe that we can fulfill our contractual commitments utilizing our cash flow from operations and, if necessary, bank financing. Contingencies On December 13, 2017, the Company settled a litigation matter entitled Ellersick, et.al. v. Monro Muffler Brake, Inc. and Monro Service Corporation (U.S. District Court, Western District of New York), together with related matters, which were first instituted in September 2010, regarding current and former Company technicians and assistant managers who alleged violations of the Fair Labor Standards Act and various state laws relating to, among other things, overtime and unpaid wages. The settlement amount of $1,950,000 is included within operating, selling, general and administrative expenses in the Company’s Consolidated Financial Statements for fiscal 2018. Such settlement amount was estimated by the Company to be less than the legal fees and expenses that the Company believed it would have likely incurred in connection with defending such matter during the twelve month period following settlement. We are currently a party to various claims and legal proceedings incidental to the conduct of our business. If management believes that a loss arising from any of these matters is probable and can reasonably be estimated, we will record the amount of the loss, or the minimum estimated liability when the loss is estimated using a range, and no point within the range is more probable than another. As additional information becomes available, any potential liability related to these matters is assessed and the estimates are revised, if necessary. Litigation is subject to inherent uncertainties, and unfavorable rulings could occur and may include monetary damages. If an unfavorable ruling were to occur, there exists the possibility of a material adverse impact on the financial position and results of operations of the period in which any such ruling occurs, or in future periods. However, based on currently available information, management believes that the ultimate outcome of any of these matters, individually and in the aggregate, will not have a material adverse effect on our financial position, results of operations or cash flows. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 16 – SUBSEQUENT EVENTS In May 2018, Monro’s Board of Directors declared a regular quarterly cash dividend of $.20 per common share or common share equivalent to be paid to shareholders of record as of June 4, 2018 . The dividend will be paid on June 14, 2018 . See Note 2 for a discussion of acquisitions subsequent to March 31, 2018. |
Significant Accounting Polici25
Significant Accounting Policies (Policy) | 12 Months Ended |
Mar. 31, 2018 | |
Significant Accounting Policies [Abstract] | |
Background | Background Monro, Inc. and its wholly owned subsidiaries, Monro Service Corporation and Car-X, LLC (together, “Monro”, the “Company”, “we”, “us”, or “our”), are engaged principally in providing automotive undercar repair and tire sales and services in the United States. Monro had 1,150 Company-operated stores, 102 franchised locations, five wholesale locations, two retread facilities and two dealer-operated automotive repair centers located in 27 states as of March 31, 2018. Monro’s operations are organized and managed in one operating segment . The internal management financial reporting that is the basis for evaluation in order to assess performance and allocate resources by our chief operating decision maker consists of consolidated data that includes the results of our retail, commercial and wholesale locations. As such, our one operating segment reflects how our operations are managed, how resources are allocated, how operating performance is evaluated by senior management and the structure of our internal financial reporting. |
Accounting estimates | Accounting estimates The accompanying Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles. The preparation of financial statements in conformity with such principles requires the use of estimates by management during the reporting period. Actual results could differ from those estimates. |
Fiscal year | Fiscal year Monro reports its results on a 52/53 week fiscal year ending on the last Saturday of March of each year. The following are the dates represented by each fiscal period: “Year ended Fiscal March 2018”: March 26, 2017 – March 31, 2018 (53 weeks) “Year ended Fiscal March 2017”: March 27, 2016 – March 25, 2017 (52 weeks) “Year ended Fiscal March 2016”: March 29, 2015 – March 26, 2016 (52 weeks) |
Consolidation | Consolidation The Consolidated Financial Statements include Monro, Inc. and its wholly owned subsidiaries, Monro Service Corporation and Car-X, LLC, after the elimination of intercompany transactions and balances. |
Revenue recognition | Revenue recognition Sales are recorded upon completion of automotive undercar repair, tire delivery and tire services provided to customers. The following was Monro’s sales mix for fiscal 2018, 2017 and 2016: Year Ended Fiscal March 2018 2017 2016 Brakes 13 % 13 % 15 % Exhaust 2 2 3 Steering 8 9 10 Tires 50 49 45 Maintenance 27 27 27 Total 100 % 100 % 100 % Revenue from the sale of tire road hazard warranty agreements is recognized on a straight-line basis over the contract period or other method when costs are not incurred ratably. Under various arrangements, we receive from certain tire vendors a delivery commission and reimbursement for the cost of the tire that we may deliver to customers on behalf of the tire vendor. The commission we earn from these transactions is as an agent and the net amount retained is recorded as sales. |
Cash equivalents | Cash equivalents We consider all highly liquid instruments with original maturities of three months or less to be cash equivalents. |
Inventories | Inventories Our inventories consist of automotive parts (including oil) and tires. Inventories are valued at the lower of cost and net realizable value using the first-in, first-out (FIFO) method. |
Barter credits | Barter credits We value barter credits at the fair market value of the inventory surrendered, as determined by reference to price lists for buying groups and jobber pricing. We use these credits primarily to pay vendors for purchases (mainly inventory vendors for the purchase of parts, oil and tires) or to purchase other goods or services from the barter company such as advertising. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment are stated at cost. Depreciation of property, plant and equipment is provided on a straight-line basis. Buildings and improvements related to owned locations are depreciated over lives varying from 10 to 39 years; machinery, fixtures and equipment over lives varying from 3 to 15 years; and vehicles over lives varying from 5 to 10 years. Computer hardware and software is depreciated over lives varying from 3 to 7 years. Buildings and improvements related to leased locations are depreciated over the shorter of the asset’s useful life or the reasonably assured lease term, as defined in the accounting guidance on leases. When property is sold or retired, the cost and accumulated depreciation are eliminated from the accounts and a gain or loss is recorded in the Consolidated Statements of Comprehensive Income. Expenditures for maintenance and repairs are expensed as incurred. |
Long-lived assets | Long-lived assets We evaluate the ability to recover long-lived assets whenever events or circumstances indicate that the carrying value of the asset may not be recoverable. In the event assets are impaired, losses are recognized to the extent the carrying value exceeds the fair value. In addition, we report assets to be disposed at the lower of the carrying amount and the fair market value less costs to sell. |
Store opening and closing costs | Store opening and closing costs New store opening costs are charged to expense in the fiscal year when incurred. When we close a store, the estimated unrecoverable costs, including the remaining lease obligation net of sublease income, if any, are charged to expense. |
Leases | Leases Financing Obligations – We are involved in the construction of leased stores. In some cases, we are responsible for construction cost overruns or non-standard tenant improvements. As a result of this involvement, we are deemed the “owner” for accounting purposes during the construction period, requiring us to capitalize the construction costs on our Consolidated Balance Sheet. Upon completion of the project, we perform a sale-leaseback analysis pursuant to guidance on accounting for leases to determine if we can remove the assets from our Consolidated Balance Sheet. For some of these leases, we are considered to have “continuing involvement”, which precludes us from derecognizing the assets from our Consolidated Balance Sheet when construction is complete. In conjunction with these leases, we capitalize the construction costs on our Consolidated Balance Sheet and also record financing obligations representing payments owed to the landlord. We do not report rent expense for the properties which are owned for accounting purposes. Rather, rental payments under the lease are recognized as a reduction of the financing obligation and as interest expense. Since we often assume leases in acquisition transactions, the prior accounting by the seller who was involved in the construction of leased stores passes to us. Additionally, we may incur other financing obligations in connection with the accounting for acquisitions. Capital Leases – Some of our property is held under capital leases. These assets are included in property, plant and equipment and depreciated over the term of the lease. We do not report rent expense for capital leases. Rather, rental payments under the lease are recognized as a reduction of the capital lease obligation and interest expense. Operating Leases – All other leases are considered operating leases. Rent expense, including rent escalations, is recognized on a straight-line basis over the reasonably assured lease term, as defined in the accounting guidance on leases. Generally, the lease term is the base lease term plus certain renewal option periods for which renewal is reasonably assured. |
Goodwill and intangible assets | Goodwill and intangible assets We have a history of growth through acquisitions. Assets and liabilities of acquired businesses are recorded at their estimated fair values as of the date of acquisition. Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. The carrying value of goodwill is subject to annual impairment reviews in accordance with accounting guidance on goodwill, which we perform in the third quarter of the fiscal year. Impairment reviews may also be triggered by any significant events or changes in circumstances affecting our business. We have one reporting unit which encompasses all operations including new acquisitions. We perform a qualitative assessment to determine if it is more likely than not that the fair value is less than the carrying value of goodwill. The qualitative assessment includes a review of business changes, economic outlook, financial trends and forecasts, growth rates, industry data, market capitalization and other relevant qualitative factors. If the qualitative factors are triggered, we perform a two-step process. The first step is to compare the fair value of our reporting unit to the book value of our reporting unit. If the fair value is less than its carrying value, the second step of the impairment test must be performed in order to determine the amount of impairment loss, if any. The second step compares the implied fair value of goodwill with the carrying amount of that goodwill. If the carrying amount of goodwill exceeds its implied fair value, an impairment charge is recognized in an amount equal to that excess. The loss recognized cannot exceed the carrying amount of goodwill. Intangible assets primarily represent allocations of purchase price to identifiable intangible assets of acquired businesses and are amortized over their estimated useful lives. All intangibles and other long-lived assets are reviewed when events or changes in circumstances indicate that the asset’s carrying value may not be recoverable. If such indicators are present, it is determined whether the sum of the estimated undiscounted future cash flows attributable to such assets is less than their carrying amounts. No such indicators were present in fiscal 2018, 2017 or 2016. A deterioration of macroeconomic conditions may not only negatively impact the estimated operating cash flows used in our cash flow models, but may also negatively impact other assumptions used in our analyses, including, but not limited to, the estimated cost of capital and/or discount rates. Additionally, as discussed above, in accordance with accounting guidance, we are required to ensure that assumptions used to determine fair value in our analyses are consistent with the assumptions a hypothetical market participant would use. As a result, the cost of capital and/or discount rates used in our analyses may increase or decrease based on market conditions and trends, regardless of whether our actual cost of capital has changed. Therefore, we may recognize an impairment of an intangible asset or assets even though realized actual cash flows are approximately equal to or greater than its previously forecasted amounts. As a result of our annual qualitative assessment performed in the third quarter of fiscal 2018, there were no impairments. There have been no triggering events during the fourth quarter of fiscal 2018. |
Self-insurance reserves | Self-insurance reserves We are largely self-insured with respect to workers’ compensation, general liability and employee medical claims. In order to reduce our risk and better manage our overall loss exposure, we purchase stop-loss insurance that covers individual claims in excess of the deductible amounts, and caps total losses in a fiscal year. We maintain an accrual for the estimated cost to settle open claims as well as an estimate of the cost of claims that have been incurred but not reported. These estimates take into consideration the historical average claim volume, the average cost for settled claims, current trends in claim costs, changes in our business and workforce, and general economic factors. These accruals are reviewed on a quarterly basis, or more frequently if factors dictate a more frequent review is warranted. For more complex reserve calculations, such as workers’ compensation, we use the services of an actuary on an annual basis to assist in determining the required reserve for open claims. |
Warranty | Warranty We provide an accrual for estimated future warranty costs for parts that we install based upon the historical relationship of warranty costs to sales. Warranty expense related to all product warranties at and for the fiscal years ended March 2018, 2017 and 2016 was not material to our financial position or results of operations. See additional discussion of tire road hazard warranty agreements under the “Revenue recognition” section of this footnote. |
Comprehensive income | Comprehensive income As it relates to Monro, comprehensive income is defined as net earnings as adjusted for pension liability adjustments and is reported net of related taxes in the Consolidated Statements of Comprehensive Income and in the Consolidated Statements of Changes in Shareholders’ Equity. |
Income taxes | Income taxes Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using tax rates based on currently enacted rules and legislation and anticipated rates that will be in effect when the differences are expected to reverse. The accounting guidance for uncertainties in income tax prescribes a comprehensive model for the financial statement recognition, measurement, presentation, and disclosure of uncertain tax positions taken or expected to be taken in income tax returns. Monro recognizes a tax benefit from an uncertain tax position in the financial statements only when it is more likely than not that the position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits and a consideration of the relevant taxing authority's administrative practices and precedents. We recognized the income tax effects of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) in our fiscal 2018 Consolidated Financial Statements in accordance with Staff Accounting Bulletin No. 118, which provides SEC staff guidance for the application of ASC Topic 740, Income Taxes, and the accounting generally required to be completed in the reporting period in which the Tax Act was enacted. Note 7 of the Consolidated Financial Statements provides additional information. |
Treasury stock | Treasury stock Treasury stock is accounted for using the par value method. During the year ended March 26, 2016, Monro’s then Chief Executive Officer surrendered 32,000 shares of Monro’s Common Stock at fair market value to pay the exercise price and the related taxes on the exercise of 89,000 stock options. Additionally, Monro’s then Executive Chairman surrendered 100,000 shares of Common Stock at fair market value to pay the exercise price and to satisfy tax withholding obligations on the exercise of 150,000 stock options. There was no activity for the former or current Chief Executive Officer or former Executive Chairman during the years ended March 31, 2018 and March 25, 2017. |
Stock-based compensation | Stock-based compensation We provide stock-based compensation through non-qualified stock options, restricted stock awards and restricted stock units. We measure compensation cost arising from the grant of share-based payments to an employee at fair value, and recognize such cost in income over the period during which the employee is required to provide service in exchange for the award, usually the vesting period. The fair value of each option award is estimated on the date of grant primarily using the Black-Scholes option valuation model. The assumptions used to estimate fair value require significant judgment and are subject to change in the future due to factors such as employee exercise behavior, stock price trends, and changes to type or provisions of stock-based awards. Any material change in one or more of these assumptions could have an impact on the estimated fair value of a future award. The fair value of restricted stock awards and restricted stock units (collectively “restricted stock”) is determined based on the stock price at the date of grant. The Company is required to estimate forfeitures and only record compensation costs for those awards that are expected to vest. The assumptions for forfeitures were determined based on type of award and historical experience. Forfeiture assumptions are adjusted at the point in time a significant change is identified, with any adjustment recorded in the period of change, and the final adjustment at the end of the requisite service period to equal actual forfeitures. We recognize compensation expense related to stock options and restricted stock using the straight-line approach. Option awards and restricted stock generally vest equally over the service period established in the award, typically four years. |
Earnings per share | Earnings per common share Basic earnings per common share are calculated by dividing income available to common shareholders, after deducting preferred stock dividends, by the weighted average number of shares of common stock outstanding. Diluted earnings per common share are calculated by dividing net income by the weighted average number of shares of common stock and equivalents outstanding. Common stock equivalents represent shares issuable upon the assumed exercise of stock options. |
Advertising | Advertising We expense the production costs of advertising the first time the advertising takes place, except for direct response advertising which is capitalized and amortized over its expected period of future benefits. Direct response advertising consists primarily of coupons for Monro’s services. The capitalized costs of this advertising are amortized over the period of the coupon’s validity, which is typically two months. Prepaid advertising at March 31, 2018 and March 25, 2017, and advertising expense for the fiscal years ended March 2018, 2017 and 2016, were not material to these financial statements. |
Vendor rebates and cooperative advertising credits | Vendor rebates and cooperative advertising credits We account for vendor rebates and cooperative advertising credits as a reduction of the cost of products purchased, except where the rebate or credit is a reimbursement of costs incurred to sell the vendor’s product, in which case it is offset against the costs incurred. |
Guarantees | Guarantees At the time we issue a guarantee, we recognize an initial liability for the fair value, or market value, of the obligation we assume under that guarantee. Monro has guaranteed certain lease payments, primarily related to franchisees, amounting to $4.4 million. This amount represents the maximum potential amount of future payments under the guarantees as of March 31, 2018. The leases are guaranteed through April 2020. In the event of default by the franchise owner, Monro generally retains the right to assume the lease of the related store, enabling Monro to re-franchise the location or to operate that location as a Company-operated store. We have recorded a liability related to anticipated defaults under the foregoing leases of $.2 million and $.6 million as of March 31, 2018 and March 25, 2017, respectively. |
Recent Accounting Pronouncements | Recent accounting pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance for the reporting of revenue from contracts with customers. This guidance provides guidelines a company will apply to determine the measurement of revenue and timing of when it is recognized. Additional guidance has subsequently been issued to amend or clarify the reporting of revenue from contracts with customers. The guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017. Early adoption was permitted, but we did not early adopt this guidance. We will adopt this guidance in the first quarter of fiscal 2019 using the modified retrospective method. We expect adoption to impact the deferral of revenue generated by the sale of an extended warranty and to increase footnote disclosures. The guidance will not materially affect our consolidated net earnings, financial position or cash flows. In February 2016, the FASB issued new accounting guidance related to leases. This guidance establishes a right of use (“ROU”) model that requires a lessee to record a ROU asset and lease liability on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Currently the new lease standard to be adopted requires using a modified retrospective transition approach for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. However, the FASB has proposed an additional transition method, in addition to the existing requirements, to transition to the new lease standard by recognizing a cumulative-effect adjustment to retained earnings in the period of adoption. Prior periods would not be restated. We are awaiting finalization of the alternatives for transition to the new standard before deciding upon a method of adoption. Early adoption is permitted, but we have not early adopted this guidance. We expect that the new lease standard will have a material impact on our Consolidated Financial Statements. While we are continuing to assess the effects of adoption, we currently believe the most significant changes relate to the recognition of new ROU assets and lease liabilities on the Consolidated Balance Sheet for real property operating leases as approximately 50% of our store leases and all of our land leases are currently not recorded on our balance sheet. We expect that substantially all of our operating lease commitments disclosed in Note 11, "Operating Lease and Other Commitments", to the Consolidated Financial Statements will be subject to the new guidance and will be recognized as operating lease liabilities and ROU assets upon adoption. We do not anticipate any significant changes in the volume of our leasing activity up until the period of adoption. In March 2016, the FASB issued new accounting guidance intended to simplify various aspects related to accounting for share-based payments and their presentation in the financial statements. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2016. We adopted this guidance during the first quarter of fiscal 2018. Amendments to this guidance related to accounting for excess tax benefits and tax deficiencies have been adopted prospectively and had an immaterial impact on the Consolidated Statement of Comprehensive Income for fiscal year ended March 31, 2018. Excess tax benefits related to share-based payments are now included in operating cash flows rather than financing cash flows. This change has been applied prospectively in accordance with the guidance and prior periods have not been adjusted. We have previously classified cash paid for tax withholding purposes as a financing activity in the statement of cash flows. Therefore, there is no change related to this requirement. The amendments allow for a one-time accounting policy election to either account for forfeitures as they occur or continue to estimate forfeitures as required by current guidance. We have elected to continue estimating forfeitures through applying a forfeiture rate. In August 2016, the FASB issued new accounting guidance related to cash flow classification. This guidance clarifies and provides specific guidance on eight cash flow classification issues that are not addressed by current generally accepted accounting principles (“GAAP”) and thereby reduce the current diversity in practice. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017. Early adoption was permitted, but we did not early adopt this guidance. This guidance is not expected to have a material impact on our Consolidated Financial Statements. In January 2017, the FASB issued new accounting guidance which clarifies the definition of a business, particularly when evaluating whether transactions should be accounted for as acquisitions or dispositions of assets or businesses. This guidance provides a screen to determine when a set of assets and activities (collectively referred to as a “set”) is not a business. This screen requires that when substantially all of the fair value of the assets is concentrated in a single identifiable asset or group of similar identifiable assets, the set is not a business. If the screen is not met, the guidance provides a framework to evaluate whether both an input and a substantive process are present to be considered a business. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017. Early adoption was permitted for certain transactions, but we did not early adopt this guidance. This guidance is not expected to have a material impact on our Consolidated Financial Statements. In January 2017, the FASB issued new accounting guidance simplifying the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test, which required the determination of an implied fair value of goodwill. Under this guidance, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. This guidance is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and should be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We have not early adopted this guidance. This guidance is not expected to have a material impact on our Consolidated Financial Statements. In March 2017, the FASB issued accounting guidance related to the presentation of net periodic pension cost and net periodic postretirement benefit cost. This guidance requires employers to present the service cost component of the net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. The other components of net benefit cost are to be presented separately from the service cost component and outside of any subtotal of income from operations. Employers will have to disclose the line(s) used to present the other components of net periodic benefit cost, if the components are not presented separately in the income statement. This guidance is effective for fiscal years and interim periods beginning after December 15, 2017, and should be applied retrospectively. Early adoption was permitted, but we did not early adopt this guidance. This guidance is not expected to have a material impact on our Consolidated Financial Statements. In May 2017, the FASB issued new accounting guidance which clarifies when to account for a change to the terms or conditions of a share based payment award as a modification. Under this guidance, modification is required only if the fair value, the vesting conditions, or the classification of an award as equity or liability changes as a result of the change in terms or conditions. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017. Early adoption was permitted, but we did not early adopt this guidance. This guidance is not expected to have a material impact on our Consolidated Financial Statements. In February 2018, the FASB issued new accounting guidance related to the reclassification of certain tax effects from accumulated other comprehensive income (AOCI). This guidance allows for the reclassification of the disproportionate tax effects caused by the Tax Act to retained earnings. Under U.S. GAAP, the effects of tax law changes on deferred tax balances, including adjustments to deferred taxes originally recorded to AOCI, are recorded as a component of income tax expense. Adjusting deferred tax balances related to items originally recorded in AOCI through income tax expense resulted in a remaining AOCI balance that was disproportionate to the amounts that would have been recorded through net income in future periods. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2018. Early adoption is permitted. We have adopted this guidance in fiscal 2018 and the new guidance allowed us to reclassify $.7 million of disproportionate (or stranded) amounts related to the Tax Act to Retained Earnings. Other recent authoritative guidance issued by the FASB (including technical corrections to the Accounting Standards Codification) and the Securities and Exchange Commission did not, or are not expected to have a material effect on Monro’s Consolidated Financial Statements. |
Significant Accounting Polici26
Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Significant Accounting Policies [Abstract] | |
Company's sales mix | Year Ended Fiscal March 2018 2017 2016 Brakes 13 % 13 % 15 % Exhaust 2 2 3 Steering 8 9 10 Tires 50 49 45 Maintenance 27 27 27 Total 100 % 100 % 100 % |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Fiscal 2017 Acquisitions [Member] | |
Business Acquisition [Line Items] | |
Schedule Of Purchase Price Allocation | As of Acquisition Date (Dollars in thousands) Trade receivables $ 7,005 Inventories 18,350 Other current assets 431 Property, plant and equipment 33,392 Intangible assets 19,233 Other non-current assets 174 Long-term deferred income tax assets 9,054 Total assets acquired 87,639 Warranty reserves 561 Other current liabilities 3,772 Long-term capital leases and financing obligations 41,215 Other long-term liabilities 1,228 Total liabilities assumed 46,776 Total net identifiable assets acquired $ 40,863 Total consideration transferred $ 141,832 Plus: gain on bargain purchase 13 Less: total net identifiable assets acquired 40,863 Goodwill $ 100,982 |
Schedule Of Intangible Assets Acquired | As of Acquisition Date Weighted Dollars Average in thousands Useful Life Customer lists $ 9,917 13 years Favorable leases 6,361 14 years Trade names 2,955 17 years Total $ 19,233 14 years |
Fiscal 2018 Acquisitions [Member] | |
Business Acquisition [Line Items] | |
Schedule Of Purchase Price Allocation | As of Acquisition Date (Dollars in thousands) Inventories $ 1,154 Other current assets 219 Property, plant and equipment 9,555 Intangible assets 4,359 Other non-current assets 7 Long-term deferred income tax assets 3,028 Total assets acquired 18,322 Other current liabilities 1,617 Long-term capital leases and financing obligations 13,707 Other long-term liabilities 209 Total liabilities assumed 15,533 Total net identifiable assets acquired $ 2,789 Total consideration transferred $ 22,614 Less: total net identifiable assets acquired 2,789 Goodwill $ 19,825 |
Schedule Of Intangible Assets Acquired | As of Acquisition Date Weighted Dollars Average in thousands Useful Life Favorable leases $ 2,934 10 years Customer lists 1,425 7 years Total $ 4,359 9 years |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Other Current Assets [Abstract] | |
Composition of other current assets | Year Ended Fiscal March 2018 2017 (Dollars in thousands) Vendor rebates and cooperative advertising credits receivable $ 16,107 $ 14,327 Other 21,106 18,312 $ 37,213 $ 32,639 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Major Classifications Of Property, Plant And Equipment | March 31, 2018 March 25, 2017 Assets Under Assets Under Capital Lease/ Capital Lease/ Assets Financing Assets Financing Owned Obligations Total Owned Obligations Total (Dollars in thousands) Land $ 85,843 $ 85,843 $ 83,675 $ 83,675 Buildings and improvements 232,109 $ 171,288 403,397 223,566 $ 147,786 371,352 Equipment, signage and fixtures 242,510 242,510 225,977 225,977 Vehicles 32,380 32,380 28,831 28,831 Construction-in-progress 3,734 3,734 3,164 3,164 596,576 171,288 767,864 565,213 147,786 712,999 Less - Accumulated depreciation and amortization 304,762 46,433 351,195 282,196 36,169 318,365 $ 291,814 $ 124,855 $ 416,669 $ 283,017 $ 111,617 $ 394,634 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets [Abstract] | |
Changes in goodwill | Dollars in thousands Balance at March 26, 2016 $ 400,132 Fiscal 2017 acquisitions 99,651 Adjustments to fiscal 2016 purchase accounting 1,953 Balance at March 25, 2017 501,736 Fiscal 2018 acquisitions 19,825 Adjustments to fiscal 2017 purchase accounting 1,331 Balance at March 31, 2018 $ 522,892 |
Composition of other intangible assets | Year Ended Fiscal March 2018 2017 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization (Dollars in thousands) Customer lists $ 33,832 $ 19,637 $ 34,489 $ 16,372 Favorable leases 27,656 9,470 25,378 7,764 Trade names 20,852 9,644 20,852 8,358 Franchise agreements 7,220 1,713 7,220 1,167 Other intangible assets 590 543 540 530 Total intangible assets $ 90,150 $ 41,007 $ 88,479 $ 34,191 |
Estimated future amortization of intangible assets | Customer lists/ Trade names/ Franchise agreements/ Favorable Year Ending Fiscal March Other Leases (Dollars in thousands) 2019 $ 4,858 $ 2,207 2020 3,899 2,178 2021 3,184 2,145 2022 2,886 1,995 2023 2,631 1,870 |
Long-Term Debt, Capital Lease31
Long-Term Debt, Capital Leases And Financing Obligations (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Long-Term Debt, Capital Leases And Financing Obligations [Abstract] | |
Long-term debt | March 31, March 25, 2018 2017 (Dollars in thousands) Revolving Credit Facility, LIBOR-based (a) $ 148,028 $ 182,297 Note payable, non-interest bearing, due in equal installments through September 2019 80 60 Less – Current portion of long-term debt (40) (20) Long-term debt $ 148,068 $ 182,337 Obligations under capital leases and financing obligations at various interest rates, due in installments through May 2045 $ 246,169 $ 228,444 Less – Current portion of capital leases and financing obligations (18,949) (15,278) Long-term capital leases and financing obligations $ 227,220 $ 213,166 _________________ (a) The London Interbank Offered Rate (LIBOR) at March 31, 2018 was 1.88% . |
Aggregate debt maturities over the next five years | Capital Leases/ Financing Obligations Aggregate Imputed All Other Year Ending Fiscal March Amount Interest Debt Total (Dollars in thousands) 2019 $ 37,696 $ (18,747) $ 40 $ 18,989 2020 37,890 (17,492) 40 20,438 2021 38,654 (16,005) 148,028 170,677 2022 38,305 (14,285) 24,020 2023 37,795 (12,273) 25,522 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Income Taxes [Abstract] | |
Components of the provision for income taxes | Year Ended Fiscal March 2018 2017 2016 (Dollars in thousands) Current - Federal $ 20,854 $ 22,040 $ 29,202 State 3,180 2,422 2,825 24,034 24,462 32,027 Deferred - Federal 15,153 10,120 6,216 State 332 1,136 373 15,485 (a) 11,256 6,589 Total $ 39,519 $ 35,718 $ 38,616 _________________ (a) For fiscal 2018, includes $4.7 million related to the Tax Act. |
Deferred tax (liabilities) assets | March 31, March 25, 2018 2017 (Dollars in thousands) Goodwill $ (32,290) $ (39,715) Other (645) (968) Total deferred tax liabilities (32,935) (40,683) Property and equipment 25,056 36,980 Insurance reserves 6,769 11,075 Warranty and other reserves 2,978 4,810 Other 9,607 11,863 Total deferred tax assets 44,410 64,728 Net deferred tax assets $ 11,475 $ 24,045 |
Reconciliation between Federal statutory tax rate and effective tax rate reflected in accompanying financial statements | Year Ended Fiscal March 2018 2017 2016 Amount Percent Amount Percent Amount Percent (Dollars in thousands) Federal income tax based on statutory tax rate applied to income before taxes (a) $ 32,692 31.6 $ 34,035 35.0 $ 36,897 35.0 State income tax, net of federal income tax benefit 2,218 2.1 2,700 2.8 2,306 2.2 Tax Act (b) 4,707 4.5 — — — — Other (98) — (1,017) (1.1) (587) (0.6) $ 39,519 38.2 $ 35,718 36.7 $ 38,616 36.6 _________________ (a) For fiscal 2018, represents the blended rate of 35% for 9/12 of the year and 21% for 3/12 of the year. (b) Represents the net discrete adjustment to income tax expense from the remeasurement of our net deferred tax assets at the lower U.S. corporate income tax rate. |
Income taxes associated with unrecognized tax benefits | Dollars in thousands Balance at March 28, 2015 $ 7,495 Tax positions related to current year: Additions 1,116 Reductions — Tax positions related to prior years: Additions — Reductions (922) Settlements — Lapses in statutes of limitations (760) Balance at March 26, 2016 6,929 Tax positions related to current year: Additions 981 Reductions — Tax positions related to prior years: Additions 66 Reductions (352) Settlements — Lapses in statutes of limitations (732) Balance at March 25, 2017 6,892 Tax positions related to current year: Additions 447 Reductions — Tax positions related to prior years: Additions — Reductions (342) Settlements — Lapses in statutes of limitations (788) Balance at March 31, 2018 $ 6,209 |
Share Based Compensation (Table
Share Based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of changes in outstanding stock options | Weighted Average Exercise Options Price Outstanding At March 28, 2015 $ 34.21 1,518,330 Granted $ 62.28 243,410 Exercised $ 29.59 (549,141) Canceled $ 50.69 (23,808) At March 26, 2016 $ 41.75 1,188,791 Granted $ 62.01 232,560 Exercised $ 31.61 (485,660) Canceled $ 61.20 (39,347) At March 25, 2017 $ 51.67 896,344 Granted $ 48.12 546,080 Exercised $ 35.00 (170,354) Canceled $ 60.87 (64,092) At March 31, 2018 $ 51.95 1,207,978 |
A summary of the status of and changes in nonvested stock options granted | Weighted Average Grant-Date Fair Value Options (per Option) Non-vested at March 28, 2015 419,729 $ 9.70 Granted 243,410 $ 13.10 Vested (242,841) $ 10.38 Canceled (20,929) $ 10.18 Non-vested at March 26, 2016 399,369 $ 11.26 Granted 232,560 $ 12.17 Vested (266,112) $ 10.48 Canceled (32,582) $ 12.79 Non-vested at March 25, 2017 333,235 $ 12.37 Granted 546,080 $ 8.84 Vested (119,445) $ 12.04 Canceled (47,465) $ 12.53 Non-vested at March 31, 2018 712,405 $ 9.72 |
Summarizes information about fixed stock options outstanding | Options Outstanding Options Exercisable Weighted Weighted Weighted Average Average Shares Average Range of Shares Remaining Exercise Under Exercise Exercise Prices Under Option Life Price Option Price $11.76 - $46.99 118,465 1.03 $ 35.97 110,965 $ 35.36 $47.00 - $48.28 442,300 5.36 $ 47.26 500 $ 47.30 $48.29 - $57.25 305,718 3.17 $ 53.19 154,825 $ 52.67 $57.26 - $75.76 341,495 3.16 $ 62.48 229,283 $ 61.34 |
Summary Of Restricted Stock | Shares Weighted-Average Grant-Date Fair Value per Share Weighted Average Remaining Vesting Period (in years) Nonvested as of March 25, 2017 — Granted 61,875 $ 47.59 Vested — Forfeited — Nonvested as of March 31, 2018 61,875 $ 47.59 2.48 |
Service Condition Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average fair value of options assumptions | Year Ended Fiscal March 2018 2017 2016 Risk-free interest rate 1.78 % 1.20 % 1.25 % Expected life, in years 4 4 4 Expected volatility 26.1 % 25.9 % 27.2 % Expected dividend yield 1.49 % 1.10 % 0.96 % |
Market Condition Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average fair value of options assumptions | Year Ended Fiscal March 2018 Risk-free interest rate 1.65 % Expected life, in years 4 Expected volatility 29.4 % Expected dividend yield 1.53 % |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Earnings Per Common Share [Abstract] | |
Reconciliation Of Basic And Diluted Earnings Per Share | Year Ended Fiscal March 2018 2017 2016 (Amounts in thousands, except per share data) Numerator for earnings per common share calculation: Net Income $ 63,935 $ 61,526 $ 66,805 Less: Preferred stock dividends (368) (447) (456) Income available to common stockholders $ 63,567 $ 61,079 $ 66,349 Denominator for earnings per common share calculation: Weighted average common shares, basic 32,767 32,413 32,026 Effect of dilutive securities: Preferred stock 510 675 760 Stock options 56 213 567 Restricted stock 8 — — Weighted average common shares, diluted 33,341 33,301 33,353 Basic earnings per common share: $ 1.94 $ 1.88 $ 2.07 Diluted earnings per common share: $ 1.92 $ 1.85 $ 2.00 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Operating Leases [Abstract] | |
Future minimum payments required under non-cancellable leases | Less - Sublease Year Ending Fiscal March Leases Income Net (Dollars in thousands) 2019 $ 34,363 $ (78) $ 34,285 2020 30,150 (86) 30,064 2021 25,258 (87) 25,171 2022 20,113 (77) 20,036 2023 14,562 (65) 14,497 Thereafter 35,046 (7) 35,039 Total $ 159,492 $ (400) $ 159,092 |
Employee Retirement and Profi36
Employee Retirement and Profit Sharing Plans (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Employee Retirement and Profit Sharing Plans [Abstract] | |
Funded status of plan | Fiscal March 2018 2017 (Dollars in thousands) Change in Plan Assets: Fair value of plan assets at beginning of year $ 20,702 $ 19,465 Actual return on plan assets 631 2,309 Benefits paid (704) (1,072) Fair value of plan assets at end of year 20,629 20,702 Change in Projected Benefit Obligation: Benefit obligation at beginning of year 20,405 21,373 Interest cost 796 806 Actuarial loss/(gain) 109 (702) Benefits paid (704) (1,072) Benefit obligation at end of year 20,606 20,405 Funded status of plan $ 23 $ 297 |
Amounts recognized in accumulated other comprehensive loss | Year Ended Fiscal March 2018 2017 (Dollars in thousands) Unamortized transition obligation $ 0 $ 0 Unamortized prior service cost 0 0 Unamortized net loss 5,675 5,117 Total $ 5,675 $ 5,117 |
Changes in plan assets and benefit obligations recognized in other comprehensive income | Year Ended Fiscal March 2018 2017 (Dollars in thousands) Net transition obligation $ 0 $ 0 Prior service cost 0 0 Net actuarial (loss)/income (558) 2,203 Total $ (558) $ 2,203 |
Components of pension (income) expense | Year Ended Fiscal March 2018 2017 2016 (Dollars in thousands) Interest cost on projected benefit obligation $ 796 $ 806 $ 803 Expected return on plan assets (1,416) (1,332) (1,389) Amortization of unrecognized actuarial loss 336 524 648 Net pension (income) expense $ (284) $ (2) $ 62 |
Weighted average assumptions used to determine benefit obligations | Year Ended Fiscal March 2018 2017 Discount rate 3.89 % 3.98 % |
Weighted average assumptions used to determine net periodic pension costs | Year Ended Fiscal March 2018 2017 2016 Discount rate 3.98 % 3.83 % 3.69 % Expected long-term return on assets 7.00 % 7.00 % 7.00 % |
Company's asset allocations by asset category | March 31, March 25, 2018 2017 Cash and cash equivalents 1.3 % 1.7 % Fixed income 39.3 % 39.7 % Equity securities 59.4 % 58.6 % Total 100.0 % 100.0 % |
Fair value measurement information for the Company's major categories of defined benefit plan assets | Fair Value Measurements at March 31, 2018 Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) (Dollars in thousands) Equity securities: U.S. companies $ 8,062 $ 7,785 $ 277 International companies 4,186 4,186 Fixed income: U.S. corporate bonds 7,505 7,505 International bonds 614 614 Cash equivalents 262 262 Total $ 20,629 $ 11,971 $ 8,658 Fair Value Measurements at March 25, 2017 Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) (Dollars in thousands) Equity securities: U.S. companies $ 8,296 $ 7,984 $ 312 International companies 3,839 3,839 Fixed income: U.S. corporate bonds 7,902 7,902 International bonds 317 317 Cash equivalents 348 348 Total $ 20,702 $ 11,823 $ 8,879 |
Pension benefit payments | Year Ended Fiscal March (Dollars in thousands) 2019 $ 972 2020 1,006 2021 1,059 2022 1,115 2023 1,149 2024 - 2028 6,068 |
Supplemental Disclosure of Ca37
Supplemental Disclosure of Cash Flow Information (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Supplemental Disclosure of Cash Flow Information [Abstract] | |
Interest and income taxes paid | Year Ended Fiscal March 2018 2017 2016 (Dollars in thousands) Cash paid during the year: Interest, net $ 25,795 $ 20,970 $ 15,687 Income taxes, net $ 25,214 $ 24,778 $ 25,322 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies [Abstract] | |
Payments due by period under long-term debt, other financing instruments and commitments | Within 1 to 3 to After Total 1 Year 3 Years 5 Years 5 Years (Dollars in thousands) Principal payments on long-term debt $ 148,108 $ 40 $ 148,068 Capital lease commitments/financing obligations 246,169 18,949 43,047 $ 49,542 $ 134,631 Operating lease commitments 159,092 34,285 55,235 34,533 35,039 Other liabilities 3,533 800 1,600 1,133 — Total $ 556,902 $ 54,074 $ 247,950 $ 85,208 $ 169,670 |
Significant Accounting Polici39
Significant Accounting Policies (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018USD ($)statesegmentpropertystoreitem | Mar. 26, 2016shares | Mar. 25, 2017USD ($) | |
Significant Accounting Policies [Line Items] | |||
Company operated stores | store | 1,150 | ||
Franchised locations | store | 102 | ||
Number of wholesale locations | property | 5 | ||
Number of retread facilities | property | 2 | ||
Dealer-operated automotive repair centers | store | 2 | ||
Number of States in which Entity Operates | state | 27 | ||
Number of operating segments | segment | 1 | ||
Number of reporting units | item | 1 | ||
Advertising expenses amortization period | 2 months | ||
Store leases not recorded on balance sheet, percent | 50.00% | ||
Property Lease Guarantee [Member] | |||
Significant Accounting Policies [Line Items] | |||
Maximum potential guarantee payments | $ | $ 4.4 | ||
Liability for anticipated lease defaults | $ | $ 0.2 | $ 0.6 | |
Stock Options [Member] | |||
Significant Accounting Policies [Line Items] | |||
Options award vesting period | 4 years | ||
Chief Executive Officer [Member] | |||
Significant Accounting Policies [Line Items] | |||
Number of shares surrendered in settlement of stock options exercised | 32,000 | ||
Number of stock options exercised in settlement of surrendered shares | 89,000 | ||
Board of Directors Chairman [Member] | |||
Significant Accounting Policies [Line Items] | |||
Number of shares surrendered in settlement of stock options exercised | 100,000 | ||
Number of stock options exercised in settlement of surrendered shares | 150,000 | ||
Buildings and Improvements [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Useful lives | 39 years | ||
Buildings and Improvements [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Useful lives | 10 years | ||
Machinery, Fixtures And Equipment [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Useful lives | 15 years | ||
Machinery, Fixtures And Equipment [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Useful lives | 3 years | ||
Vehicles [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Useful lives | 10 years | ||
Vehicles [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Useful lives | 5 years | ||
Computer Hardware And Software [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Useful lives | 7 years | ||
Computer Hardware And Software [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Useful lives | 3 years |
Significant Accounting Polici40
Significant Accounting Policies (Leases, Goodwill And Intangible Assets Narrative) (Details) $ in Thousands | 3 Months Ended |
Dec. 23, 2017USD ($) | |
Significant Accounting Policies [Abstract] | |
Impairment of intangible assets | $ 0 |
Significant Accounting Polici41
Significant Accounting Policies (Company's sales mix) (Details) | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 25, 2017 | Mar. 26, 2016 | |
Company's sales mix | |||
Revenue recognition | 100.00% | 100.00% | 100.00% |
Brakes [Member] | |||
Company's sales mix | |||
Revenue recognition | 13.00% | 13.00% | 15.00% |
Exhaust [Member] | |||
Company's sales mix | |||
Revenue recognition | 2.00% | 2.00% | 3.00% |
Steering [Member] | |||
Company's sales mix | |||
Revenue recognition | 8.00% | 9.00% | 10.00% |
Tires [Member] | |||
Company's sales mix | |||
Revenue recognition | 50.00% | 49.00% | 45.00% |
Maintenance [Member] | |||
Company's sales mix | |||
Revenue recognition | 27.00% | 27.00% | 27.00% |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) $ in Thousands | May 13, 2018storeproperty | Apr. 01, 2018store | Mar. 31, 2018USD ($)store | Mar. 25, 2017USD ($)storeproperty |
Business Acquisition [Line Items] | ||||
Costs related to completed acquisitions | $ | $ 500 | $ 1,000 | ||
Sales for acquired entities | $ | 14,800 | 104,900 | ||
Net income (loss) for acquired entities | $ | 100 | (1,000) | ||
Total consideration transferred, portion in cash | $ | 141,700 | |||
Payable to a seller | $ | 100 | |||
Change in estimates, property, plant and equipment | $ | 1,400 | |||
Change in estimates, intangible assets | $ | (2,200) | |||
Change in estimates, long-term deferred income tax assets | $ | (300) | |||
Change in current liabilities | $ | (100) | |||
Change in estimates, long-term capital leases and financing obligations | $ | 200 | |||
Change in estimates, other liabilities | $ | 100 | |||
Adjustments to goodwill related to purchase accounting | $ | $ 1,331 | $ 1,953 | ||
Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Store acquisitions related to greenfield store growth strategy | 4 | |||
Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Store acquisitions related to acquisition growth strategy | 5 | |||
Store acquisitions related to greenfield store growth strategy | 1 | |||
Free Service Tire Company, Inc. [Member] | Subsequent Event [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | May 13, 2018 | |||
Number of stores acquired | 12 | |||
Number of retread centers acquired | property | 1 | |||
Number of wholesale centers acquired | property | 4 | |||
Liberty Auto Group, Inc. [Member] | Subsequent Event [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Apr. 1, 2018 | |||
Number of stores acquired | 4 | |||
Appalachian Tire Products, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Mar. 4, 2018 | |||
Number of stores acquired | 7 | |||
Mattoon Muffler, Inc. and Charleston Muffler, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Mar. 4, 2018 | |||
Number of stores acquired | 2 | |||
City Tire Co., Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Mar. 4, 2018 | |||
Number of stores acquired | 1 | |||
Devenir Enterprises, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Mar. 1, 2018 | |||
Number of stores acquired | 1 | |||
Valley Tire Co., Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Jan. 14, 2018 | |||
Number of stores acquired | 3 | |||
MLR, Incorporated [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Dec. 17, 2017 | |||
Number of stores acquired | 1 | |||
TriGar Tire & Auto Service Center, LLC. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Dec. 10, 2017 | |||
Number of stores acquired | 2 | |||
TriGar Tire & Auto Service Center, LLC., Operated By Monro [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of stores acquired | 1 | |||
TriGar Tire & Auto Service Center, LLC., Operated By Mr. Tire [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of stores acquired | 1 | |||
Auto MD, LLC. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Aug. 13, 2017 | |||
Number of stores acquired | 8 | |||
UVR, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Jul. 30, 2017 | |||
Number of stores acquired, both operating and not opened | 13 | |||
Number of stores acquired | 12 | |||
Number of stores never opened | 1 | |||
Norman Young Tires, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Jul. 9, 2017 | |||
Number of stores acquired | 1 | |||
D&S Pulaski, LLC. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Jun. 25, 2017 | |||
Number of stores acquired | 1 | |||
J & R Diversified, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Jun. 11, 2017 | |||
Number of stores acquired | 2 | |||
Michael N. McGroarty, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Jun. 11, 2017 | |||
Number of stores acquired | 1 | |||
Tires Plus LLC. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Jun. 2, 2017 | |||
Number of stores acquired | 1 | |||
Bob Sumerel Tire Co., Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | May 21, 2017 | |||
Number of stores acquired | 1 | |||
Collier Automotive Group, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Apr. 23, 2017 | |||
Number of stores acquired | 1 | |||
Nona, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Feb. 26, 2017 | |||
Number of stores acquired | 16 | |||
Thrifty Tire of Roxboro, LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Feb. 5, 2017 | |||
Number of stores acquired | 2 | |||
Hamel Tire Center Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Oct. 16, 2016 | |||
Number of stores acquired | 1 | |||
Parkway D/C Enterprises, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Oct. 2, 2016 | |||
Number of stores acquired | 3 | |||
Florida Tire Service, LLC. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Sep. 19, 2016 | |||
Number of stores acquired | 1 | |||
Davco Development Company and Ricketts, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Sep. 18, 2016 | |||
Number of stores acquired | 2 | |||
Clark Tire & Auto, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Sep. 11, 2016 | |||
Number of stores acquired | 26 | |||
Number of retread centers acquired | property | 1 | |||
Number of wholesale centers acquired | property | 4 | |||
NTI, LLC. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Jul. 18, 2016 | |||
Number of stores acquired | 1 | |||
Kwik-Fit Tire & Service [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Jul. 17, 2016 | |||
Number of stores acquired | 1 | |||
Task Holdings, Inc. and Autopar, Inc. Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Jul. 10, 2016 | |||
Number of stores acquired | 4 | |||
Harlow Tire Company Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Jun. 26, 2016 | |||
Number of stores acquired | 1 | |||
Express Tire Centers, LLC. Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Jun. 19, 2016 | |||
Number of stores acquired | 2 | |||
Pioneer Tire Pros Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | May 8, 2016 | |||
Number of stores acquired | 1 | |||
McGee Tire Stores, Inc. Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | May 1, 2016 | |||
Number of stores acquired | 29 | |||
Number of retread centers acquired | property | 1 | |||
Fiscal 2017 Acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Total consideration transferred | $ | $ 141,832 | |||
Fiscal 2018 Acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Total consideration transferred | $ | $ 22,614 |
Acquisitions (Schedule Of Purch
Acquisitions (Schedule Of Purchase Price Allocation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 25, 2017 | Mar. 26, 2016 | |
Purchase price of acquisitions allocation | |||
Plus: gain on bargain purchase | $ 13 | ||
Goodwill | 522,892 | $ 501,736 | $ 400,132 |
Fiscal 2017 Acquisitions [Member] | |||
Purchase price of acquisitions allocation | |||
Trade receivables | 7,005 | ||
Inventories | 18,350 | ||
Other current assets | 431 | ||
Property, plant and equipment | 33,392 | ||
Intangible assets | 19,233 | ||
Other non-current assets | 174 | ||
Long-term deferred income tax assets | 9,054 | ||
Total assets acquired | 87,639 | ||
Warranty reserves | 561 | ||
Other current liabilities | 3,772 | ||
Long-term capital leases and financing obligations | 41,215 | ||
Other long-term liabilities | 1,228 | ||
Total liabilities assumed | 46,776 | ||
Total net identifiable assets acquired | 40,863 | ||
Total consideration transferred | 141,832 | ||
Plus: gain on bargain purchase | 13 | ||
Less: total net identifiable assets acquired | 40,863 | ||
Goodwill | $ 100,982 | ||
Fiscal 2018 Acquisitions [Member] | |||
Purchase price of acquisitions allocation | |||
Inventories | 1,154 | ||
Other current assets | 219 | ||
Property, plant and equipment | 9,555 | ||
Intangible assets | 4,359 | ||
Other non-current assets | 7 | ||
Long-term deferred income tax assets | 3,028 | ||
Total assets acquired | 18,322 | ||
Other current liabilities | 1,617 | ||
Long-term capital leases and financing obligations | 13,707 | ||
Other long-term liabilities | 209 | ||
Total liabilities assumed | 15,533 | ||
Total net identifiable assets acquired | 2,789 | ||
Total consideration transferred | 22,614 | ||
Less: total net identifiable assets acquired | 2,789 | ||
Goodwill | $ 19,825 |
Acquisitions (Schedule Of Intan
Acquisitions (Schedule Of Intangible Assets Acquired) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 25, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | $ 4,359 | $ 19,233 |
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life | 9 years | |
Customer Lists [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | $ 1,425 | 9,917 |
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life | 7 years | |
Favorable Leases [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | $ 2,934 | 6,361 |
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life | 10 years | |
Trade Names [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | $ 2,955 | |
Fiscal 2017 Acquisitions [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life | 14 years | |
Fiscal 2017 Acquisitions [Member] | Customer Lists [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life | 13 years | |
Fiscal 2017 Acquisitions [Member] | Favorable Leases [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life | 14 years | |
Fiscal 2017 Acquisitions [Member] | Trade Names [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life | 17 years |
Other Current Assets (Details)
Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 25, 2017 |
Composition of other current assets | ||
Vendor rebates and cooperative advertising credits receivable | $ 16,107 | $ 14,327 |
Other | 21,106 | 18,312 |
Prepaid expense and other assets, current, total | $ 37,213 | $ 32,639 |
Property, Plant and Equipment46
Property, Plant and Equipment (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 25, 2017 | Mar. 26, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 44.3 | $ 39.5 | $ 36 |
Amortization expense | $ 12.3 | $ 9.5 | $ 7.5 |
Property, Plant and Equipment47
Property, Plant and Equipment (Major Classifications Of Property, Plant And Equipment) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 25, 2017 |
Major classifications of property, plant and equipment | ||
Property, plant and equipment | $ 767,864 | $ 712,999 |
Less - Accumulated depreciation and amortization | 351,195 | 318,365 |
Net property, plant and equipment | 416,669 | 394,634 |
Land [Member] | ||
Major classifications of property, plant and equipment | ||
Property, plant and equipment | 85,843 | 83,675 |
Buildings and Improvements [Member] | ||
Major classifications of property, plant and equipment | ||
Property, plant and equipment | 403,397 | 371,352 |
Equipment, Signage and Fixtures [Member] | ||
Major classifications of property, plant and equipment | ||
Property, plant and equipment | 242,510 | 225,977 |
Vehicles [Member] | ||
Major classifications of property, plant and equipment | ||
Property, plant and equipment | 32,380 | 28,831 |
Construction-in-Progress [Member] | ||
Major classifications of property, plant and equipment | ||
Property, plant and equipment | 3,734 | 3,164 |
Assets Owned [Member] | ||
Major classifications of property, plant and equipment | ||
Property, plant and equipment | 596,576 | 565,213 |
Less - Accumulated depreciation and amortization | 304,762 | 282,196 |
Net property, plant and equipment | 291,814 | 283,017 |
Assets Owned [Member] | Land [Member] | ||
Major classifications of property, plant and equipment | ||
Property, plant and equipment | 85,843 | 83,675 |
Assets Owned [Member] | Buildings and Improvements [Member] | ||
Major classifications of property, plant and equipment | ||
Property, plant and equipment | 232,109 | 223,566 |
Assets Owned [Member] | Equipment, Signage and Fixtures [Member] | ||
Major classifications of property, plant and equipment | ||
Property, plant and equipment | 242,510 | 225,977 |
Assets Owned [Member] | Vehicles [Member] | ||
Major classifications of property, plant and equipment | ||
Property, plant and equipment | 32,380 | 28,831 |
Assets Owned [Member] | Construction-in-Progress [Member] | ||
Major classifications of property, plant and equipment | ||
Property, plant and equipment | 3,734 | 3,164 |
Assets Under Capital Lease/Finance Obligations [Member] | ||
Major classifications of property, plant and equipment | ||
Property, plant and equipment | 171,288 | 147,786 |
Less - Accumulated depreciation and amortization | 46,433 | 36,169 |
Net property, plant and equipment | 124,855 | 111,617 |
Assets Under Capital Lease/Finance Obligations [Member] | Buildings and Improvements [Member] | ||
Major classifications of property, plant and equipment | ||
Property, plant and equipment | $ 171,288 | $ 147,786 |
Goodwill and Intangible Asset48
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 25, 2017 | Mar. 26, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 5 | $ 5.1 | $ 3.8 |
Customer Lists [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful lives, in years | 10 years | ||
Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful lives, in years | 14 years | ||
Favorable Leases [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful lives, in years | 14 years | ||
Franchise Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful lives, in years | 13 years | ||
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful lives, in years | 5 years |
Goodwill and Intangible Asset49
Goodwill and Intangible Assets (Changes In Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 25, 2017 | |
Changes in goodwill | ||
Goodwill, Beginning Balance | $ 501,736 | $ 400,132 |
Additions to goodwill from current year acquisitions | 19,825 | 99,651 |
Adjustments to goodwill related to purchase accounting | 1,331 | 1,953 |
Goodwill, Ending Balance | $ 522,892 | $ 501,736 |
Goodwill and Intangible Asset50
Goodwill and Intangible Assets (Composition of other intangible assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 25, 2017 |
Composition of other intangible assets | ||
Gross carrying amount | $ 90,150 | $ 88,479 |
Accumulated amortization | 41,007 | 34,191 |
Customer Lists [Member] | ||
Composition of other intangible assets | ||
Gross carrying amount | 33,832 | 34,489 |
Accumulated amortization | 19,637 | 16,372 |
Favorable Leases [Member] | ||
Composition of other intangible assets | ||
Gross carrying amount | 27,656 | 25,378 |
Accumulated amortization | 9,470 | 7,764 |
Trade Names [Member] | ||
Composition of other intangible assets | ||
Gross carrying amount | 20,852 | 20,852 |
Accumulated amortization | 9,644 | 8,358 |
Franchise Agreements [Member] | ||
Composition of other intangible assets | ||
Gross carrying amount | 7,220 | 7,220 |
Accumulated amortization | 1,713 | 1,167 |
Other Intangible Assets [Member] | ||
Composition of other intangible assets | ||
Gross carrying amount | 590 | 540 |
Accumulated amortization | $ 543 | $ 530 |
Goodwill and Intangible Asset51
Goodwill and Intangible Assets (Estimated future amortization of intangible assets) (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Customer Lists, Trade Names, Franchise Agreements and Other [Member] | |
Estimated future amortization of intangible assets | |
2,019 | $ 4,858 |
2,020 | 3,899 |
2,021 | 3,184 |
2,022 | 2,886 |
2,023 | 2,631 |
Favorable Leases [Member] | |
Estimated future amortization of intangible assets | |
2,019 | 2,207 |
2,020 | 2,178 |
2,021 | 2,145 |
2,022 | 1,995 |
2,023 | $ 1,870 |
Long-Term Debt, Capital Lease52
Long-Term Debt, Capital Leases And Financing Obligations (Narrative) (Details) | 12 Months Ended | ||
Mar. 31, 2018USD ($)entity | Mar. 25, 2017USD ($) | ||
Debt Instrument [Line Items] | |||
Net availability under the credit facility | $ 422,600,000 | ||
Carrying amount of long-term debt (including current portion) | 148,108,000 | $ 182,400,000 | |
Fair value of long-term debt (including current portion) | 148,100,000 | 182,400,000 | |
The total amount financed for properties with capital leases and financing obligations | 246,200,000 | ||
Note payable, non-interest bearing, due in equal installments through September 2019 | 80,000 | $ 60,000 | |
Revolving Credit Facility, January 2016 [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit facility agreement | $ 600,000,000 | ||
Interest rate over LIBOR on the facility | 1.25% | 1.00% | |
Revolving credit facility agreement term | 5 years | ||
Revolving credit facility agreement, number of participating banks | entity | 8 | ||
Provision allowing to expand the amount of overall facility | $ 100,000,000 | ||
Amount outstanding under Credit Facility | [1] | 148,028,000 | $ 182,297,000 |
Standby Letters of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit sub-facility for issuing standby letters of credit | 80,000,000 | ||
Letters of credit outstanding | $ 29,400,000 | ||
Minimum [Member] | Revolving Credit Facility, January 2016 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate over LIBOR on the facility | 0.75% | ||
Percentage of face amount of standby letter of credit payable as fees | 0.15% | ||
Minimum [Member] | Standby Letters of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Percentage of face amount of standby letter of credit payable as fees | 0.875% | ||
Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Percentage of net income permit as cash dividend, maximum | 50.00% | ||
Maximum [Member] | Revolving Credit Facility, January 2016 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate over LIBOR on the facility | 1.75% | ||
Percentage of face amount of standby letter of credit payable as fees | 0.35% | ||
Maximum [Member] | Standby Letters of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Percentage of face amount of standby letter of credit payable as fees | 1.875% | ||
[1] | The London Interbank Offered Rate (LIBOR) at March 31, 2018 was 1.88%. |
Long-Term Debt, Capital Lease53
Long-Term Debt, Capital Leases And Financing Obligations (Long-Term Debt) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 25, 2017 | |
Long-term Debt, Unclassified [Abstract] | |||
Note payable, non-interest bearing, due in equal installments through September 2019 | $ 80 | $ 60 | |
Less – Current portion of long-term debt | (40) | (20) | |
Long-term debt | 148,068 | 182,337 | |
Obligations under capital leases and financing obligations at various interest rates, due in installments through May 2045 | 246,169 | 228,444 | |
Less – Current portion of capital leases and financing obligations | (18,949) | (15,278) | |
Long-term capital leases and financing obligations | 227,220 | 213,166 | |
Revolving Credit Facility, January 2016 [Member] | |||
Long-term Debt, Unclassified [Abstract] | |||
Revolving Credit Facility, LIBOR-based | [1] | $ 148,028 | $ 182,297 |
London Interbank Offered Rate (LIBOR) | 1.88% | ||
[1] | The London Interbank Offered Rate (LIBOR) at March 31, 2018 was 1.88%. |
Long-Term Debt, Capital Lease54
Long-Term Debt, Capital Leases And Financing Obligations (Aggregate debt maturities over the next five years) (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Long-term Debt, by Maturity [Abstract] | |
2,019 | $ 18,989 |
2,020 | 20,438 |
2,021 | 170,677 |
2,022 | 24,020 |
2,023 | 25,522 |
Capital Leases/Financing Obligations, Aggregate Amount [Member] | |
Long-term Debt, by Maturity [Abstract] | |
2,019 | 37,696 |
2,020 | 37,890 |
2,021 | 38,654 |
2,022 | 38,305 |
2,023 | 37,795 |
Capital Leases/Financing Obligations, Imputed Interest [Member] | |
Long-term Debt, by Maturity [Abstract] | |
2,019 | (18,747) |
2,020 | (17,492) |
2,021 | (16,005) |
2,022 | (14,285) |
2,023 | (12,273) |
All Other Debt [Member] | |
Long-term Debt, by Maturity [Abstract] | |
2,019 | 40 |
2,020 | 40 |
2,021 | $ 148,028 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||||||
Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 25, 2017 | Mar. 26, 2016 | Mar. 28, 2015 | |||||
Unrecognized tax benefits | $ 6,209 | $ 6,892 | $ 6,929 | $ 7,495 | ||||||
Interest and penalties accrued related to unrecognized tax benefits | 400 | $ 400 | ||||||||
State net operating loss carryforwards available | $ 5,400 | |||||||||
Carryforward expiration period | Mar. 31, 2038 | |||||||||
Federal tax rate | 31.60% | [1] | 35.00% | 35.00% | [1] | 35.00% | [1] | |||
Income tax benefit, change in tax rate, reduction of basis points | [2] | $ (4,707) | ||||||||
Scenario, Forecast [Member] | ||||||||||
Federal tax rate | 21.00% | |||||||||
Maximum [Member] | ||||||||||
Fiscal years under examination | 2,017 | |||||||||
Minimum [Member] | ||||||||||
Fiscal years under examination | 2,015 | |||||||||
[1] | For fiscal 2018, represents the blended rate of 35% for 9/12 of the year and 21% for 3/12 of the year. | |||||||||
[2] | Represents the net discrete adjustment to income tax expense from the remeasurement of our net deferred tax assets at the lower U.S. corporate income tax rate. |
Income Taxes (Components of the
Income Taxes (Components of the provision for income taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Mar. 31, 2018 | Mar. 25, 2017 | Mar. 26, 2016 | |||
Current - | |||||
Federal | $ 20,854 | $ 22,040 | $ 29,202 | ||
State | 3,180 | 2,422 | 2,825 | ||
Total | 24,034 | 24,462 | 32,027 | ||
Deferred - | |||||
Federal | 15,153 | 10,120 | 6,216 | ||
State | 332 | 1,136 | 373 | ||
Total | 15,485 | [1] | 11,256 | 6,589 | |
Income tax expense, total | 39,519 | $ 35,718 | $ 38,616 | ||
Effect of change in tax rate | [2] | $ 4,707 | |||
[1] | For fiscal 2018, includes $4.7 million related to the Tax Act. | ||||
[2] | Represents the net discrete adjustment to income tax expense from the remeasurement of our net deferred tax assets at the lower U.S. corporate income tax rate. |
Income Taxes (Deferred tax (lia
Income Taxes (Deferred tax (liabilities) assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 25, 2017 |
Deferred tax (liabilities) assets | ||
Goodwill | $ (32,290) | $ (39,715) |
Other | (645) | (968) |
Total deferred tax liabilities | (32,935) | (40,683) |
Property and equipment | 25,056 | 36,980 |
Insurance reserves | 6,769 | 11,075 |
Warranty and other reserves | 2,978 | 4,810 |
Other | 9,607 | 11,863 |
Total deferred tax assets | 44,410 | 64,728 |
Net deferred tax assets | $ 11,475 | $ 24,045 |
Income Taxes (Reconciliation be
Income Taxes (Reconciliation between Federal statutory tax rate and effective tax rate reflected in accompanying financial statements) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||||
Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 25, 2017 | Mar. 26, 2016 | |||||
Reconciliation between Federal statutory tax rate and effective tax rate reflected in accompanying financial statements | |||||||||
Federal income tax based on statutory tax rate applied to income before taxes | [1] | $ 32,692 | $ 34,035 | $ 36,897 | |||||
State income tax, net of federal income tax benefit | 2,218 | 2,700 | 2,306 | ||||||
Tax act | [2] | 4,707 | |||||||
Other | (98) | (1,017) | (587) | ||||||
Income tax expense, total | $ 39,519 | $ 35,718 | $ 38,616 | ||||||
Federal income tax based on statutory tax rate applied to income before taxes, percentage | 31.60% | [1] | 35.00% | 35.00% | [1] | 35.00% | [1] | ||
State income tax, net of federal income tax benefit, percentage | 2.10% | 2.80% | 2.20% | ||||||
Tax act, percentage | [2] | 4.50% | |||||||
Other, percentage | (1.10%) | (0.60%) | |||||||
Income tax expense, percentage | 38.20% | 36.70% | 36.60% | ||||||
Scenario, Forecast [Member] | |||||||||
Reconciliation between Federal statutory tax rate and effective tax rate reflected in accompanying financial statements | |||||||||
Federal income tax based on statutory tax rate applied to income before taxes, percentage | 21.00% | ||||||||
[1] | For fiscal 2018, represents the blended rate of 35% for 9/12 of the year and 21% for 3/12 of the year. | ||||||||
[2] | Represents the net discrete adjustment to income tax expense from the remeasurement of our net deferred tax assets at the lower U.S. corporate income tax rate. |
Income Taxes (Income taxes asso
Income Taxes (Income taxes associated with unrecognized tax benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 25, 2017 | Mar. 26, 2016 | |
Income taxes associated with unrecognized tax benefits | |||
Unrecognized Tax Benefits, Beginning Balance | $ 6,892 | $ 6,929 | $ 7,495 |
Tax positions related to current year: | |||
Additions | 447 | 981 | 1,116 |
Reductions | |||
Tax positions related to prior years: | |||
Additions | 66 | ||
Reductions | (342) | (352) | (922) |
Settlements | |||
Lapses in statutes of limitations | (788) | (732) | (760) |
Unrecognized Tax Benefits, Ending Balance | $ 6,209 | $ 6,892 | $ 6,929 |
Stock Ownership (Narrative) (De
Stock Ownership (Narrative) (Details) - $ / shares | 12 Months Ended | |
Mar. 31, 2018 | Mar. 25, 2017 | |
Stock Ownership [Abstract] | ||
Class C convertible preferred stock, conversion value | $ 0.064 | $ 0.064 |
Distribution amount per share of preferred stock on liquidation of company | $ 1.50 | |
Minimum percentage of preferred stock holders approval for authorization of action | 60.00% |
Share Based Compensation (Narra
Share Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 25, 2017 | Mar. 26, 2016 | Mar. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 2,858 | $ 2,483 | $ 2,750 | |
Tax benefit from compensation expense | 1,000 | |||
Unrecognized compensation expense related to non-vested fixed stock options | $ 7,500 | |||
Compensation expenses recognition period related to nonvested fixed stock options | 2 years | |||
Weighted average fair value of options granted | $ 8.84 | $ 12.17 | $ 13.10 | |
Total shares exercisable | 495,573 | 563,109 | 789,422 | |
Weighted average exercise price, exercisable | $ 52.80 | |||
Options available for grant | 1,005,670 | |||
Options granted | 546,080 | 232,560 | 243,410 | |
Weighted average contractual term, options outstanding | 3 years 9 months 18 days | 3 years 1 month 6 days | ||
Weighted average contractual term of all options exercisable | 2 years | 2 years 4 months 24 days | ||
Aggregate intrinsic value, options outstanding | $ 5,200 | $ 4,900 | ||
Aggregate intrinsic value of all options exercisable | 2,200 | 4,800 | ||
Fair value of awards vested under the Company's stock plans | $ 1,400 | $ 2,800 | $ 2,500 | |
Aggregate intrinsic value, Company's closing stock price | $ 53.60 | $ 52.15 | $ 69.68 | |
Aggregate intrinsic value of options exercised | $ 2,800 | $ 13,300 | $ 22,300 | |
Cash received from stock option exercises | 4,816 | 3,492 | 8,602 | |
Tax benefit from option exercises | 500 | $ 3,500 | $ 6,700 | |
Closing stock price | $ 53.60 | |||
Aggregate intrinsic value | $ 3,300 | |||
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee options term | 6 years | |||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee options term | 10 years | |||
Market Condition Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted | 100,000 | |||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of employee options | 4 years | |||
Incentive Stock Option Plan 2007 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock shares initially reserved for future issuance | 873,000 | |||
Common shares authorized for issuance | 5,001,620 |
Share Based Compensation (Weigh
Share Based Compensation (Weighted average fair value of options assumptions) (Details) | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 25, 2017 | Mar. 26, 2016 | |
Service Condition Options [Member] | |||
Weighted average fair value of options granted | |||
Risk-free interest rate | 1.78% | 1.20% | 1.25% |
Expected life, in years | 4 years | 4 years | 4 years |
Expected volatility | 26.10% | 25.90% | 27.20% |
Expected dividend yield | 1.49% | 1.10% | 0.96% |
Market Condition Options [Member] | |||
Weighted average fair value of options granted | |||
Risk-free interest rate | 1.65% | ||
Expected life, in years | 4 years | ||
Expected volatility | 29.40% | ||
Expected dividend yield | 1.53% |
Share Based Compensation (Summa
Share Based Compensation (Summary of changes in outstanding stock options) (Details) - $ / shares | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 25, 2017 | Mar. 26, 2016 | |
Summary of changes in outstanding stock options | |||
Weighted average exercise price, beginning of period | $ 51.67 | $ 41.75 | $ 34.21 |
Weighted average exercise price, granted | 48.12 | 62.01 | 62.28 |
Weighted average exercise price, exercised | 35 | 31.61 | 29.59 |
Weighted average exercise price, canceled | 60.87 | 61.20 | 50.69 |
Weighted average exercise price, end of period | $ 51.95 | $ 51.67 | $ 41.75 |
Options outstanding, beginning balance | 896,344 | 1,188,791 | 1,518,330 |
Options outstanding, granted | 546,080 | 232,560 | 243,410 |
Options outstanding, exercised | (170,354) | (485,660) | (549,141) |
Options outstanding, canceled | (64,092) | (39,347) | (23,808) |
Options outstanding, ending balance | 1,207,978 | 896,344 | 1,188,791 |
Share Based Compensation (A sum
Share Based Compensation (A summary of the status of and changes in nonvested stock options granted) (Details) - $ / shares | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 25, 2017 | Mar. 26, 2016 | |
A summary of the status of and changes in nonvested stock options granted | |||
Non-vested, shares, beginning balance | 333,235 | 399,369 | 419,729 |
Granted, shares | 546,080 | 232,560 | 243,410 |
Vested, shares | (119,445) | (266,112) | (242,841) |
Canceled, shares | (47,465) | (32,582) | (20,929) |
Non-vested, shares, ending balance | 712,405 | 333,235 | 399,369 |
Weighted average grant date fair value, beginning of period | $ 12.37 | $ 11.26 | $ 9.70 |
Weighted average grant date fair value, granted | 8.84 | 12.17 | 13.10 |
Weighted average grant date fair value, vested | 12.04 | 10.48 | 10.38 |
Weighted average grant date fair value, canceled | 12.53 | 12.79 | 10.18 |
Weighted average grant date fair value, end of period | $ 9.72 | $ 12.37 | $ 11.26 |
Share Based Compensation (Sum65
Share Based Compensation (Summarizes information about fixed stock options outstanding) (Details) | 12 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Exercise Price Range One [Member] | |
Summarizes information about fixed stock options outstanding | |
Range of exercise price, lower limit | $ 11.76 |
Range of exercise price, upper limit | $ 46.99 |
Options outstanding, shares under option | shares | 118,465 |
Options outstanding, weighted average remaining life | 1 year 11 days |
Options outstanding, weighted average exercise price | $ 35.97 |
Options exercisable, shares under option | shares | 110,965 |
Options exercisable, weighted average exercise price | $ 35.36 |
Exercise Price Range Two [Member] | |
Summarizes information about fixed stock options outstanding | |
Range of exercise price, lower limit | 47 |
Range of exercise price, upper limit | $ 48.28 |
Options outstanding, shares under option | shares | 442,300 |
Options outstanding, weighted average remaining life | 5 years 4 months 10 days |
Options outstanding, weighted average exercise price | $ 47.26 |
Options exercisable, shares under option | shares | 500 |
Options exercisable, weighted average exercise price | $ 47.30 |
Exercise Price Range Three [Member] | |
Summarizes information about fixed stock options outstanding | |
Range of exercise price, lower limit | 48.29 |
Range of exercise price, upper limit | $ 57.25 |
Options outstanding, shares under option | shares | 305,718 |
Options outstanding, weighted average remaining life | 3 years 2 months 1 day |
Options outstanding, weighted average exercise price | $ 53.19 |
Options exercisable, shares under option | shares | 154,825 |
Options exercisable, weighted average exercise price | $ 52.67 |
Exercise Price Range Four [Member] | |
Summarizes information about fixed stock options outstanding | |
Range of exercise price, lower limit | 57.26 |
Range of exercise price, upper limit | $ 75.76 |
Options outstanding, shares under option | shares | 341,495 |
Options outstanding, weighted average remaining life | 3 years 1 month 28 days |
Options outstanding, weighted average exercise price | $ 62.48 |
Options exercisable, shares under option | shares | 229,283 |
Options exercisable, weighted average exercise price | $ 61.34 |
Share Based Compensation (Sum66
Share Based Compensation (Summary Of Restricted Stock) (Details) | 12 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Share Based Compensation [Abstract] | |
Shares, Granted | shares | 61,875 |
Shares, Nonvested as of March 31, 2018 | shares | 61,875 |
Weighted-average grant-date fair value per share, Granted | $ / shares | $ 47.59 |
Weighted-average grant-date fair value per share, Nonvested as of March 31, 2018 | $ / shares | $ 47.59 |
Weighted average remaining vesting period (in years) | 2 years 5 months 23 days |
Earnings Per Common Share (Narr
Earnings Per Common Share (Narrative) (Details) - shares shares in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 25, 2017 | Mar. 26, 2016 | |
Earnings Per Common Share [Abstract] | |||
Antidilutive securities excluded from computation of earnings per share | 1,091 | 304 | 171 |
Earnings Per Common Share (Reco
Earnings Per Common Share (Reconciliation Of Basic And Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 25, 2017 | Mar. 26, 2016 | ||
Numerator for earnings per common share calculation: | ||||
Net income | $ 63,935 | $ 61,526 | $ 66,805 | |
Less: Preferred stock dividends | [1] | (368) | (447) | (456) |
Income available to common stockholders | $ 63,567 | $ 61,079 | $ 66,349 | |
Denominator for earnings per common share calculation: | ||||
Weighted average common shares, basic | 32,767 | 32,413 | 32,026 | |
Effect of dilutive securities: | ||||
Preferred stock | 510 | 675 | 760 | |
Weighted average number of common shares, diluted | 33,341 | 33,301 | 33,353 | |
Basic earnings per common share: | $ 1.94 | $ 1.88 | $ 2.07 | |
Diluted earnings per common share: | $ 1.92 | $ 1.85 | $ 2 | |
Stock Options [Member] | ||||
Effect of dilutive securities: | ||||
Share based payment arrangements (in shares) | 56 | 213 | 567 | |
Restricted Stock [Member] | ||||
Effect of dilutive securities: | ||||
Share based payment arrangements (in shares) | 8 | |||
[1] | Dividends paid per common share or common share equivalent were $.72, $.68 and $.60, respectively, for the years ended March 31, 2018, March 25, 2017 and March 26, 2016. |
Operating Leases (Narrative) (D
Operating Leases (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 25, 2017 | Mar. 26, 2016 | |
Operating Leases [Abstract] | |||
Rent expense under operating leases, net of sublease income | $ 38.9 | $ 38.6 | $ 36.7 |
Sublease income | $ 0.1 | $ 0.1 | $ 0.1 |
Operating Leases (Future minimu
Operating Leases (Future minimum payments required under non-cancellable leases) (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Operating Leases [Abstract] | |
Leases, 2019 | $ 34,363 |
Leases, 2020 | 30,150 |
Leases, 2021 | 25,258 |
Leases, 2022 | 20,113 |
Leases, 2023 | 14,562 |
Leases, Thereafter | 35,046 |
Leases, Total | 159,492 |
Less - Sublease Income, 2019 | (78) |
Less - Sublease Income, 2020 | (86) |
Less - Sublease Income, 2021 | (87) |
Less - Sublease Income, 2022 | (77) |
Less - Sublease Income, 2023 | (65) |
Less - Sublease Income, Thereafter | (7) |
Less - Sublease Income, Total | (400) |
Net, 2019 | 34,285 |
Net, 2020 | 30,064 |
Net, 2021 | 25,171 |
Net, 2022 | 20,036 |
Net, 2023 | 14,497 |
Net, Thereafter | 35,039 |
Net, Total | $ 159,092 |
Employee Retirement and Profi71
Employee Retirement and Profit Sharing Plans (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018USD ($)item | Mar. 25, 2017USD ($) | Mar. 26, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum term criteria for availing defined benefit plans | 1 year | ||
Minimum age criteria for availing defined benefit plans | item | 21 | ||
Charges to expense for the Company's matching contributions | $ 1 | $ 0.8 | $ 0.7 |
Total liability, Deferred Compensation Plan | $ 2.1 | $ 2.1 | |
Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company's general target allocation for the plan | 40.00% | ||
Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company's general target allocation for the plan | 60.00% |
Employee Retirement and Profi72
Employee Retirement and Profit Sharing Plans (Funded status of plan) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 25, 2017 | Mar. 26, 2016 | |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | $ 20,702 | $ 19,465 | |
Actual return on plan assets | 631 | 2,309 | |
Benefits paid | (704) | (1,072) | |
Fair value of plan assets at end of year | 20,629 | 20,702 | $ 19,465 |
Change in Projected Benefit Obligation: | |||
Benefit obligation at beginning of year | 20,405 | 21,373 | |
Interest cost | 796 | 806 | 803 |
Actuarial loss/(gain) | 109 | (702) | |
Benefits paid | (704) | (1,072) | |
Benefit obligation at end of year | 20,606 | 20,405 | $ 21,373 |
Funded status of plan | $ 23 | $ 297 |
Employee Retirement and Profi73
Employee Retirement and Profit Sharing Plans (Amounts recognized in accumulated other comprehensive loss) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 25, 2017 |
Employee Retirement and Profit Sharing Plans [Abstract] | ||
Unamortized transition obligation | $ 0 | $ 0 |
Unamortized prior service cost | 0 | 0 |
Unamortized net loss | 5,675 | 5,117 |
Total | $ 5,675 | $ 5,117 |
Employee Retirement and Profi74
Employee Retirement and Profit Sharing Plans (Changes in plan assets and benefit obligations recognized in other comprehensive income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 25, 2017 | |
Employee Retirement and Profit Sharing Plans [Abstract] | ||
Net transition obligation | $ 0 | $ 0 |
Prior service cost | 0 | 0 |
Net actuarial (loss)/income | (558) | 2,203 |
Total | $ (558) | $ 2,203 |
Employee Retirement and Profi75
Employee Retirement and Profit Sharing Plans (Components of pension (income) expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 25, 2017 | Mar. 26, 2016 | |
Employee Retirement and Profit Sharing Plans [Abstract] | |||
Interest cost on projected benefit obligation | $ 796 | $ 806 | $ 803 |
Expected return on plan assets | (1,416) | (1,332) | (1,389) |
Amortization of unrecognized actuarial loss | 336 | 524 | 648 |
Net pension (income) expense | $ (284) | $ (2) | $ 62 |
Employee Retirement and Profi76
Employee Retirement and Profit Sharing Plans (Weighted average assumptions used to determine benefit obligations) (Details) | Mar. 31, 2018 | Mar. 25, 2017 |
Employee Retirement and Profit Sharing Plans [Abstract] | ||
Discount rate | 3.89% | 3.98% |
Employee Retirement and Profi77
Employee Retirement and Profit Sharing Plans (Weighted average assumptions used to determine net periodic pension costs) (Details) | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 25, 2017 | Mar. 26, 2016 | |
Employee Retirement and Profit Sharing Plans [Abstract] | |||
Discount rate | 3.98% | 3.83% | 3.69% |
Expected long-term return on assets | 7.00% | 7.00% | 7.00% |
Employee Retirement and Profi78
Employee Retirement and Profit Sharing Plans (Company's asset allocations by asset category) (Details) | Mar. 31, 2018 | Mar. 25, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% |
Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 1.30% | 1.70% |
Fixed Income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 39.30% | 39.70% |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 59.40% | 58.60% |
Employee Retirement and Profi79
Employee Retirement and Profit Sharing Plans (Fair value measurement information for the Company's major categories of defined benefit plan assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 25, 2017 | Mar. 26, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurement of defined benefit plan assets | $ 20,629 | $ 20,702 | $ 19,465 |
U.S. Companies Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurement of defined benefit plan assets | 8,062 | 8,296 | |
International Companies Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurement of defined benefit plan assets | 4,186 | 3,839 | |
U.S. Corporate Bonds Fixed Income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurement of defined benefit plan assets | 7,505 | 7,902 | |
International Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurement of defined benefit plan assets | 614 | 317 | |
Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurement of defined benefit plan assets | 262 | 348 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurement of defined benefit plan assets | 11,971 | 11,823 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Companies Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurement of defined benefit plan assets | 7,785 | 7,984 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | International Companies Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurement of defined benefit plan assets | 4,186 | 3,839 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurement of defined benefit plan assets | 8,658 | 8,879 | |
Significant Other Observable Inputs (Level 2) [Member] | U.S. Companies Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurement of defined benefit plan assets | 277 | 312 | |
Significant Other Observable Inputs (Level 2) [Member] | U.S. Corporate Bonds Fixed Income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurement of defined benefit plan assets | 7,505 | 7,902 | |
Significant Other Observable Inputs (Level 2) [Member] | International Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurement of defined benefit plan assets | 614 | 317 | |
Significant Other Observable Inputs (Level 2) [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurement of defined benefit plan assets | 262 | 348 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurement of defined benefit plan assets | |||
Significant Unobservable Inputs (Level 3) [Member] | U.S. Companies Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurement of defined benefit plan assets | |||
Significant Unobservable Inputs (Level 3) [Member] | International Companies Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurement of defined benefit plan assets | |||
Significant Unobservable Inputs (Level 3) [Member] | U.S. Corporate Bonds Fixed Income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurement of defined benefit plan assets | |||
Significant Unobservable Inputs (Level 3) [Member] | International Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurement of defined benefit plan assets | |||
Significant Unobservable Inputs (Level 3) [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurement of defined benefit plan assets |
Employee Retirement and Profi80
Employee Retirement and Profit Sharing Plans (Pension benefit payments) (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Employee Retirement and Profit Sharing Plans [Abstract] | |
2,019 | $ 972 |
2,020 | 1,006 |
2,021 | 1,059 |
2,022 | 1,115 |
2,023 | 1,149 |
2024-2028 | $ 6,068 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018USD ($)item | Mar. 26, 2016USD ($)item | Mar. 25, 2017USD ($) | |
Related Party Transaction [Line Items] | |||
Related party leases remaining | item | 6 | ||
New leases contemplated | item | 0 | ||
Operating and capital leases | $ 0.8 | $ 0.7 | $ 0.8 |
Financial and Strategic Advisory Services, Annual Fee | 0.3 | ||
Financial and Strategic Advisory Services Fee | $ 0.2 | ||
Number of unsuccessful acquisitions where advisory services fees were paid | item | 3 | ||
Acquisition Advisory Services [Member] | |||
Related Party Transaction [Line Items] | |||
Financial and Strategic Advisory Services Fee | $ 1 |
Supplemental Disclosure of Ca82
Supplemental Disclosure of Cash Flow Information (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 25, 2017 | Mar. 26, 2016 | |
Supplemental Disclosure of Cash Flow Information [Abstract] | |||
Increase in property, plant and equipment | $ 19.2 | $ 14.2 | $ 13.3 |
Increase in capital leases and financing obligations | $ 19.2 | $ 14.2 | $ 13.3 |
Supplemental Disclosure of Ca83
Supplemental Disclosure of Cash Flow Information (Interest and income taxes paid) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 25, 2017 | Mar. 26, 2016 | |
Supplemental Disclosure of Cash Flow Information [Abstract] | |||
Interest, net | $ 25,795 | $ 20,970 | $ 15,687 |
Income taxes, net | $ 25,214 | $ 24,778 | $ 25,322 |
Commitments and Contingencies84
Commitments and Contingencies (Narrative) (Details) $ in Thousands | 12 Months Ended |
Mar. 31, 2018USD ($) | |
Commitments and Contingencies [Abstract] | |
Litigation settlement | $ 1,950 |
Commitments and Contingencies85
Commitments and Contingencies (Payments due by period under long-term debt, other financing instruments and commitments) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 25, 2017 |
Commitments and Contingencies [Abstract] | ||
Principal payments on long-term debt, Within 1 year | $ 40 | |
Principal payments on long-term debt, 1 to 3 years | 148,068 | |
Principal payments on long-term debt, Total | 148,108 | $ 182,400 |
Capital lease commitments/financing obligations, Within 1 year | 18,949 | |
Capital lease commitments/financing obligations, 1 to 3 years | 43,047 | |
Capital lease commitments/financing obligations, 3 to 5 years | 49,542 | |
Capital lease commitments/financing obligations, After 5 years | 134,631 | |
Capital lease commitments/financing obligations, Total | 246,169 | |
Operating lease commitments, Within 1 year | 34,285 | |
Operating lease commitments, 1 to 3 years | 55,235 | |
Operating lease commitments, 3 to 5 years | 34,533 | |
Operating lease commitments, After 5 years | 35,039 | |
Net, Total | 159,092 | |
Other liabilities, Within 1 year | 800 | |
Other liabilities, 1 to 3 years | 1,600 | |
Other liabilities, 3 to 5 years | 1,133 | |
Other liabilities, Total | 3,533 | |
Contractual commitments, Within 1 year | 54,074 | |
Contractual commitments, 1 to 3 years | 247,950 | |
Contractual commitments, 3 to 5 years | 85,208 | |
Contractual commitments, After 5 years | 169,670 | |
Contractual commitments, Total | $ 556,902 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] | 1 Months Ended |
May 31, 2018$ / shares | |
Subsequent Event [Line Items] | |
Cash dividend per common share | $ 0.20 |
Dividends payable, date of record | Jun. 4, 2018 |
Cash dividend date to be paid | Jun. 14, 2018 |