Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 30, 2023 | Feb. 26, 2024 | Jul. 14, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 30, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SPTN | ||
Entity Registrant Name | SPARTANNASH COMPANY | ||
Entity Central Index Key | 0000877422 | ||
Current Fiscal Year End Date | --12-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 34,618,147 | ||
Entity Public Float | $ 722,477,443 | ||
Entity Shell Company | false | ||
Entity Well Known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
ICFR Auditor Attestation Flag | true | ||
Entity File Number | 000-31127 | ||
Entity Tax Identification Number | 38-0593940 | ||
Entity Address, Address Line One | 850 76th Street, S.W. | ||
Entity Address, Address Line Two | P.O. Box 8700 | ||
Entity Address, City or Town | Grand Rapids | ||
Entity Address, State or Province | MI | ||
Entity Address, Postal Zip Code | 49518-8700 | ||
City Area Code | 616 | ||
Local Phone Number | 878-2000 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Incorporation, State or Country Code | MI | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Common Stock, no par value | ||
Security Exchange Name | NASDAQ | ||
Document Financial Statement Error Correction [Flag] | false | ||
Auditor Name | DELOITTE & TOUCHE LLP | ||
Auditor Firm ID | 34 | ||
Auditor Location | Grand Rapids, Michigan | ||
Documents Incorporated by Reference | Part III, Items 10, 11, 12, 13 and 14 Definitive Proxy Statement for the 2024 Annual Meeting |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 17,964 | $ 29,086 |
Accounts and notes receivable, net | 421,859 | 404,016 |
Inventories, net | 575,226 | 571,065 |
Prepaid expenses and other current assets | 62,440 | 62,244 |
Total current assets | 1,077,489 | 1,066,411 |
Property and equipment, net | 649,071 | 610,220 |
Goodwill | 182,160 | 182,160 |
Intangible assets, net | 101,535 | 106,341 |
Operating lease assets | 242,146 | 257,047 |
Other assets, net | 103,174 | 84,382 |
Total assets | 2,355,575 | 2,306,561 |
Current liabilities | ||
Accounts payable | 473,419 | 487,215 |
Accrued payroll and benefits | 78,076 | 103,048 |
Other accrued expenses | 57,609 | 62,465 |
Current portion of operating lease liabilities | 41,979 | 45,453 |
Current portion of long-term debt and finance lease liabilities | 8,813 | 6,789 |
Total current liabilities | 659,896 | 704,970 |
Long-term liabilities | ||
Deferred income taxes | 73,904 | 66,293 |
Operating lease liabilities | 226,118 | 239,062 |
Other long-term liabilities | 28,808 | 33,376 |
Long-term debt and finance lease liabilities | 588,667 | 496,792 |
Total long-term liabilities | 917,497 | 835,523 |
Commitments and contingencies (Note 9) | ||
Shareholders’ equity | ||
Common stock, voting, no par value; 100,000 shares authorized; 34,610 and 35,079 shares outstanding | 460,299 | 468,061 |
Preferred stock, no par value, 10,000 shares authorized; no shares outstanding | 0 | 0 |
Accumulated other comprehensive loss | 796 | 2,979 |
Retained earnings | 317,087 | 295,028 |
Total shareholders’ equity | 778,182 | 766,068 |
Total liabilities and shareholders’ equity | $ 2,355,575 | $ 2,306,561 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0 | $ 0 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares outstanding | 35,079,000 | 34,610,000 |
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income Statement [Abstract] | |||
Net sales | $ 9,729,219 | $ 9,643,100 | $ 8,931,039 |
Cost of sales | 8,243,663 | 8,145,625 | 7,527,160 |
Gross profit | 1,485,556 | 1,497,475 | 1,403,879 |
Operating expenses | |||
Selling, general and administrative | 1,366,238 | 1,427,783 | 1,309,456 |
Paid time off transition adjustment | 0 | 0 | (21,371) |
Acquisition and integration, net | 3,416 | 343 | 708 |
Restructuring and asset impairment, net | 9,190 | 805 | 2,886 |
Total operating expenses | 1,378,844 | 1,428,931 | 1,291,679 |
Operating earnings | 106,712 | 68,544 | 112,200 |
Other expenses and (income) | |||
Interest expense, net | 39,887 | 22,791 | 13,851 |
Other, net | (3,300) | (1,162) | (308) |
Total other expenses, net | 36,587 | 21,629 | 13,543 |
Earnings before income taxes | 70,125 | 46,915 | 98,657 |
Income tax expense | 17,888 | 12,397 | 24,906 |
Net earnings | $ 52,237 | $ 34,518 | $ 73,751 |
Net earnings per basic common share | $ 1.53 | $ 0.98 | $ 2.07 |
Net earnings per diluted common share | $ 1.5 | $ 0.95 | $ 2.05 |
Weighted Average Number of Shares Outstanding, Basic | 34,211 | 35,279 | 35,639 |
Weighted Average Number of Shares Outstanding, Diluted | 34,901 | 36,313 | 35,943 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income (Loss) | $ 52,237 | $ 34,518 | $ 73,751 |
Other comprehensive (loss) income, before tax | |||
Change in interest rate swap | (412) | 0 | 0 |
Postretirement liability adjustment | (2,475) | 5,875 | 1,087 |
Total other comprehensive (loss) income, before tax | (2,887) | 5,875 | 1,087 |
Income tax benefit (expense) related to items of other comprehensive (loss) income | 704 | (1,441) | (266) |
Other comprehensive (loss) income, net of tax | (2,183) | 4,434 | 821 |
Comprehensive income | $ 50,054 | $ 38,952 | $ 74,572 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] |
Balance at beginning of the year, net of tax at Jan. 02, 2021 | $ 735,049 | $ 491,819 | $ (2,276) | $ 245,506 |
Balance, shares at Jan. 02, 2021 | 35,851 | |||
Net earnings | 73,751 | 73,751 | ||
Other comprehensive income | 821 | 821 | ||
Dividends | (28,716) | (28,716) | ||
Share repurchase, value | (5,325) | $ (5,325) | ||
Share repurchase, shares | (265) | |||
Stock-based compensation | 6,868 | $ 6,868 | ||
Stock warrant | 1,958 | 1,958 | ||
Issuance of common stock for associate stock purchase plan | 715 | $ 715 | ||
Issuance of common stock for associate stock purchase plan, shares | 37 | |||
Issuances of restricted stock, shares | 563 | |||
Cancellations of stock-based awards, value | (2,252) | $ (2,252) | ||
Cancellations of stock-based awards, shares | (238) | |||
Balance at end of the year, net of tax at Jan. 01, 2022 | 782,869 | $ 493,783 | (1,455) | 290,541 |
Balance, shares at Jan. 01, 2022 | 35,948 | |||
Net earnings | 34,518 | 34,518 | ||
Other comprehensive income | 4,434 | 4,434 | ||
Dividends | (30,031) | (30,031) | ||
Share repurchase, value | (32,494) | $ 32,494 | ||
Share repurchase, shares | (1,047) | |||
Stock-based compensation | 8,353 | $ 8,353 | ||
Stock warrant | 2,158 | 2,158 | ||
Issuance of common stock for associate stock purchase plan | 587 | $ 587 | ||
Issuance of common stock for associate stock purchase plan, shares | 21 | |||
Issuances of restricted stock, shares | 391 | |||
Cancellations of stock-based awards, value | (4,326) | $ (4,326) | ||
Cancellations of stock-based awards, shares | (234) | |||
Balance at end of the year, net of tax at Dec. 31, 2022 | $ 766,068 | $ 468,061 | 2,979 | 295,028 |
Balance, shares at Dec. 31, 2022 | 34,610 | 35,079 | ||
Net earnings | $ 52,237 | 52,237 | ||
Other comprehensive income | (2,183) | (2,183) | ||
Dividends | (30,178) | (30,178) | ||
Share repurchase, value | (18,595) | $ (18,595) | ||
Share repurchase, shares | (765) | |||
Stock-based compensation | 12,221 | $ 12,221 | ||
Stock warrant | 1,559 | 1,559 | ||
Issuance of common stock for associate stock purchase plan | 1,034 | $ 1,034 | ||
Issuance of common stock for associate stock purchase plan, shares | 54 | |||
Issuances of restricted stock, shares | 448 | |||
Cancellations of stock-based awards, value | (3,981) | $ (3,981) | ||
Cancellations of stock-based awards, shares | (206) | |||
Balance at end of the year, net of tax at Dec. 30, 2023 | $ 778,182 | $ 460,299 | $ 796 | $ 317,087 |
Balance, shares at Dec. 30, 2023 | 35,079 | 34,610 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends per share | $ 0.86 | $ 0.84 | $ 0.8 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Cash flows from operating activities | |||
Net earnings | $ 52,237 | $ 34,518 | $ 73,751 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Non-cash restructuring, asset impairment and other charges | 9,089 | 553 | 2,973 |
Depreciation and amortization | 98,639 | 94,180 | 92,711 |
Non-cash rent | (3,397) | (4,339) | (4,854) |
LIFO expense | 16,104 | 56,823 | 18,652 |
Postretirement benefits (income) expense | (2,316) | (890) | 1,611 |
Deferred income taxes | 8,229 | 1,415 | 17,603 |
Stock-based compensation expense | 12,268 | 8,353 | 6,868 |
Stock warrant | 1,559 | 2,158 | 1,958 |
Loss (gain) on disposals of assets | 259 | 1,073 | (106) |
Other operating activities | 1,741 | 2,183 | 1,262 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (17,228) | (38,168) | (4,005) |
Inventories | (21,925) | (92,346) | 320 |
Prepaid expenses and other assets | (14,913) | 4,683 | (18,992) |
Accounts payable | (17,478) | 28,069 | (18,286) |
Accrued payroll and benefits | (27,348) | 16,855 | (37,331) |
Current income taxes | (424) | 4,658 | 17,475 |
Other accrued expenses and other liabilities | (5,769) | (9,428) | 9,545 |
Net cash provided by operating activities | 89,327 | 110,350 | 161,155 |
Cash flows from investing activities | |||
Purchases of property and equipment | (120,330) | (97,280) | (79,427) |
Net proceeds from the sale of assets | 4,333 | 36,825 | 29,375 |
Acquisitions, net of cash acquired | (780) | (41,429) | 0 |
Loans to customers | (750) | 0 | (180) |
Payments from customers on loans | 1,298 | 1,358 | 2,317 |
Other investing activities | (288) | (422) | (63) |
Net cash used in investing activities | (116,517) | (100,948) | (47,978) |
Cash flows from financing activities | |||
Proceeds from senior secured credit facility | 1,359,560 | 1,468,649 | 1,374,478 |
Payments on senior secured credit facility | (1,282,948) | (1,382,409) | (1,455,016) |
Proceeds from other long-term debt | 1,000 | 0 | 0 |
Repayment of other long-term debt and finance lease liabilities | (8,157) | (6,849) | (5,710) |
Share repurchase | (18,527) | (32,494) | (5,325) |
Net payments related to stock-based award activities | (3,981) | (4,326) | (2,252) |
Dividends paid | (29,660) | (29,708) | (28,327) |
Financing fees paid | (1,219) | (3,845) | (262) |
Net cash provided by (used in) financing activities | 16,068 | 9,018 | (122,414) |
Net (decrease) increase in cash and cash equivalents | (11,122) | 18,420 | (9,237) |
Cash and cash equivalents at beginning of year | 29,086 | 10,666 | 19,903 |
Cash and cash equivalents at end of year | $ 17,964 | $ 29,086 | $ 10,666 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 52,237 | $ 34,518 | $ 73,751 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Basis of Presentation | 12 Months Ended |
Dec. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Basis of Presentation | Note 1 – Summary of Significant Accounting Policies and Basis of Presentation Principles of Consolidation: The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of SpartanNash Company and its subsidiaries (“SpartanNash” or “the Company”). Intercompany accounts and transactions have been eliminated. Fiscal Year: The Company’s fiscal year end is the Saturday nearest to December 31. The following discussion is as of and for the fiscal years ended December 30, 2023 ("2023" or “current year”), December 31, 2022 (“2022” or “prior year”) and January 1, 2022 (“2021 ”), all of which include 52 weeks. All fiscal quarters are 12 weeks, except for the Company’s first quarter, which is 16 weeks. Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported therein. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods might differ from those estimates. Revenue Recognition: The Company recognizes revenue when it satisfies a performance obligation by transferring control of the promised goods and services to a customer, in an amount that reflects the consideration that it expects to receive in exchange for those goods or services. This is achieved through applying the following five-step model: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the Company satisfies a performance obligation The Company generates substantially all of its revenue from contracts with customers, whether formal or implied. Sales taxes collected from customers are remitted to the appropriate taxing jurisdictions and are excluded from sales revenue as the Company considers itself a pass-through conduit for collecting and remitting sales taxes, with the exception of taxes assessed during the procurement process of select inventories. Greater than 99 % of the Company’s revenues are recognized at a point in time. Revenues from product sales are recognized when control of the goods is transferred to the customer, which occurs at a point in time, typically upon delivery or shipment to the customer, depending on shipping terms, or upon customer check-out in a corporate-owned retail store. Freight revenues are also recognized upon delivery, at a point in time. Other revenues, including revenues from value-added services and leases, are recognized as earned, over a period of time. All of the Company’s revenues are domestic, as the Company has no performance obligations on international shipments subsequent to delivery to the domestic port. The Company evaluates whether it is a principal (i.e., reports revenues on a gross basis) or an agent (i.e., reports revenues on a net basis) with respect to each contract with customers. Based upon the nature of the products the Company sells, its customers have limited rights of return, which are immaterial. Discounts provided by the Company to customers at the time of sale are recognized as a reduction in sales as the products are sold. Certain contracts include rebates and other forms of variable consideration, including up-front rebates, rebates in arrears, rebatable incentives, non-cash incentives including stock warrants, and product incentives, which may have tiered structures based on purchase volumes and which are accounted for as variable consideration. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Cost of Sales: Cost of sales represents the cost of inventory sold during the period, which includes purchase costs, in-bound freight, physical inventory adjustments, markdowns and promotional allowances and excludes warehousing costs, depreciation and other administrative expenses. The Company’s cost of sales and gross profit may not be identical to similarly titled measures reported by other companies. Vendor allowances and credits that relate to the Company’s buying and merchandising activities consist primarily of promotional allowances, which are allowances on purchased quantities and, to a lesser extent, slotting allowances, which are billed to vendors for the Company’s merchandising costs such as setting up warehouse infrastructure. Vendor allowances are recognized as a reduction in cost of sales when the related product is sold. Lump sum payments received for multi-year contracts are amortized over the life of the contracts based on contractual terms. The Wholesale segment includes shipping and handling costs in the selling, general and administrative section of operating expenses within the consolidated statements of earnings. Cash and Cash Equivalents: Cash and cash equivalents consists of cash and highly liquid investments with an original maturity of three months or less at the date of purchase. Accounts and Notes Receivable: Accounts and notes receivable are presented net of allowances for credit losses of $ 5.8 million and $ 7.0 million as of December 30, 2023 and December 31, 2022, respectively. The Company estimates losses using an expected loss model, considering both historical data and future expectations, including collection experience, expectations for current credit risks, accounts receivable payment status, the customer’s financial health, as well as the Company’s collateral and creditor position. The Company pools similar assets based on their credit risk characteristics, whereby many of its trade receivables are pooled based on certain customer or aging characteristics. After assets are pooled, an appropriate loss factor is applied based on management’s expectations. The Company also records specific reserves for credit losses in certain circumstances using a similar estimated loss model. Operating results include net bad debt (income) expense of $( 0.4 ) million, $ 3.3 million and $( 0.3 ) million for 2023, 2022 and 2021, respectively. Accounts and notes receivable are composed of the following: December 30, December 31, (In thousands) 2023 2022 Current notes receivable $ 2,613 $ 1,622 Customer accounts receivable 379,208 375,550 Other receivables 44,649 32,942 Allowance for credit losses ( 4,611 ) ( 6,098 ) Net accounts and current notes receivable $ 421,859 $ 404,016 Long-term notes receivable $ 7,369 $ 8,573 Allowance for credit losses ( 1,212 ) ( 948 ) Net long-term notes receivable $ 6,157 $ 7,625 Inventory Valuation: Inventories are valued at the lower of cost or net realizable value. Approximately 90.4 % and 87.5 % of the Company’s inventories were valued on the last-in, first-out (LIFO) method at December 30, 2023 and December 31, 2022 , respectively. If replacement cost had been used, inventories would have been $ 154.7 million and $ 138.6 million higher at December 30, 2023 and December 31, 2022, respectively. The replacement cost method utilizes the most current unit purchase cost to calculate the value of inventories. During 2023, 2022 and 2021 , certain inventory quantities were reduced which resulted in the liquidation of LIFO inventory carried at lower costs prevailing in prior years, the effect of which decreased the LIFO provision by $ 4.0 million, $ 2.1 million and $ 2.1 million in 2023, 2022 and 2021 , respectively. The Company accounts for its Wholesale segment inventory using a perpetual system and utilizes the retail inventory method (“RIM”) to value inventory for center store products in the Retail segment. Under RIM, inventory is stated at cost, determined by applying a cost ratio to the retail value of inventories. Fresh, pharmacy and fuel products are accounted for at cost in the Retail segment. The Company estimates allowances for inventory shortages based on the results of recent physical counts. Goodwill and Other Intangible Assets: Goodwill represents the excess purchase price over the fair value of tangible net assets acquired in business combinations after amounts have been allocated to intangible assets. Goodwill is not amortized, but is reviewed for impairment during the last quarter of each year, or whenever events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount, using a discounted cash flow model and comparable market values of each reportable segment. Measuring the fair value of reporting units is a Level 3 measurement under the fair value hierarchy. See Note 7, for a discussion of fair value levels. Intangible assets primarily consist of trade names, customer relationships, pharmacy prescription lists, non-compete agreements, liquor licenses and franchise fees. The following assets are amortized on a straight-line basis over the period of time in which their expected benefits will be realized: customer relationships and prescription lists (period of expected benefit reflecting the pattern in which the economic benefits are consumed), non-compete agreements and franchise fees (length of agreements). Indefinite-lived trade names and liquor licenses are not amortized but are tested at least annually for impairment. Property and Equipment: Property and equipment are recorded at cost. Expenditures which improve or extend the life of the respective assets are capitalized, whereas expenditures for normal repairs and maintenance are charged to operations as incurred. Depreciation expense on land improvements, buildings and improvements, and equipment is computed using the straight-line method as follows: Land improvements 15 years Buildings and improvements 15 to 40 years Equipment 3 to 15 years Property under finance leases and leasehold improvements are amortized on a straight-line basis over the shorter of the remaining terms of the leases or the estimated useful lives of the assets. Internal use software is included in Property and equipment, net and totaled $ 45.9 million and $ 47.3 million as of December 30, 2023 and December 31, 2022 , respectively. Cloud Computing Arrangements: Implementation costs for software that is accessed in hosted cloud computing arrangements is accounted for in accordance with Accounting Standards Codification (“ASC”) 350, Intangibles-Goodwill and Other . Capitalized development costs of hosted cloud computing arrangements include configuration, installation, licenses, other upfront costs and internal labor costs of employees devoted to the cloud computing software implementation project. Once a project is complete, amortization is computed using the straight-line method over the term of the associated hosting arrangement, including any options to extend the hosting arrangement that the Company is reasonably certain to exercise, generally 3 to 8 years . These costs are classified in the consolidated balance sheets in “Prepaid expenses and other current assets” or “Other assets, net” based on the term of the arrangement, and the related cash flows are presented as cash outflows from operations. The net book value of these implementation costs was $ 24.3 million and $ 21.3 million, as of December 30, 2023 and December 31, 2022 , respectively. Leases: At the commencement or modification of a contract, the Company determines whether a lease exists based on 1) the identification of an underlying asset and 2) the right to control the use of the identified asset. When the Company is a lessee, leases are classified as either operating or finance. Operating and finance lease assets represent the Company’s right to use an underlying asset for the lease term, while lease obligations represent the Company’s obligation to make lease payments arising from the lease. Most of the Company’s lease agreements include variable payments related to executory costs for property taxes, utilities, insurance, maintenance and other occupancy costs related to the leased asset. Additionally, certain of the Company’s lease agreements include rental payments based on a percentage of retail sales over contractual levels or, in the case of transportation equipment, provisions requiring payment of variable rent based upon miles driven. These variable payments are not included in the measurement of the lease liability or asset and are expensed as incurred. Leases with an initial expected term of 12 months or less are not recorded in the consolidated balance sheets and the related lease expense is recognized on a straight-line basis over the lease term. Lease assets and obligations are recognized at the lease commencement date based on the present value of lease payments and initial direct costs incurred, less incentives, over the lease term. In the absence of stated or implicit interest rates within lease contracts, incremental borrowing rates are estimated based on the Company’s borrowing rate as of the lease commencement date to determine the present value of lease payments. Incremental borrowing rates are determined by using the yield curve based on the Company’s creditworthiness on a collateralized basis. The Company includes option periods in the assumed lease term when it is reasonably certain that the options will be exercised. Operating lease assets and liabilities are reported discretely in the consolidated balance sheets. Finance lease assets are included in Property and equipment, net and finance lease liabilities are included in Long-term debt and finance lease liabilities within the Company’s consolidated balance sheets. Impairment of Long-Lived Assets: The Company reviews and evaluates long-lived assets for impairment when events or circumstances indicate that the carrying amount of an asset may not be recoverable. When the undiscounted expected future cash flows are not sufficient to recover an asset’s carrying amount, the fair value is compared to the carrying value to determine the impairment loss to be recorded. Long-lived assets to be sold or disposed of are reported at the lower of carrying amount or fair value, less the cost to sell. Fair values are determined by independent appraisals or expected sales prices based upon market participant data developed by third party professionals or by internal licensed real estate professionals. Estimates of future cash flows and expected sales prices are judgments based upon the Company’s experience and knowledge of operations. These estimates project cash flows several years into the future and are affected by changes in the Company's performance, economy, real estate market conditions and inflation. The Company evaluates definite-lived intangible asset and operating and finance lease asset impairments in conjunction with testing of the related asset groups as described above. Impairment reserves are applied proportionally as a reduction to the assets in the asset group, including lease assets. Reserves for Closed Properties: The Company records reserves for closed properties that are subject to long-term lease commitments based upon the lease ancillary costs from the date of closure to the end of the remaining lease term. Future cash flows are based on historical expenses, contractual lease terms and knowledge of the geographic area in which the closed site is located. These estimates are subject to multiple factors, including inflation, ability to sublease the property and other economic conditions. The reserved expenses are paid over the remaining lease terms, which range from 1 to 5 years . Subsequent adjustments to closed property reserves are made when actual exit costs differ from the original estimates. These adjustments are made for changes in estimates in the period in which the changes become known. The current portion of the future closed property obligations is included in “Other accrued expenses,” and the long-term portion is included in “Other long-term liabilities” in the consolidated balance sheets. Debt Issuance Costs : Debt issuance costs are amortized over the term of the related financing agreement and are included as a direct deduction from the carrying amount of the related debt liability in “Long-term debt and finance lease liabilities” in the consolidated balance sheets. Insurance Reserves: SpartanNash is insured through self-insurance retentions or high deductible programs for workers’ compensation, general liability, and automobile liability, and is also self-insured for healthcare costs. Self-insurance liabilities are recorded based on claims filed and an estimate of claims incurred but not yet reported. Workers’ compensation, general liability and automobile liabilities are actuarially estimated based on available historical information on an undiscounted basis. The Company has purchased stop-loss coverage to limit its exposure to any significant exposure on a per claim basis for its self-insurance retentions and high deductible programs. On a per claim b asis, the Company’s exposure is up to $ 0.5 million for workers’ compensation and general liability and $ 2.0 million for automobile liability. For healthcare, the Company’s exposure is up to $ 0.6 million in annual claims for each covered individual. A summary of changes in the Company’s self-insurance liability is as follows: (In thousands) 2023 2022 2021 Balance at beginning of year $ 18,157 $ 19,445 $ 16,737 Expenses 63,722 64,386 72,101 Claim payments, net of employee contributions ( 63,700 ) ( 65,674 ) ( 69,393 ) Balance at end of year $ 18,179 $ 18,157 $ 19,445 The current portion of the self-insurance liability was $ 10.9 million and $ 10.2 million as of December 30, 2023 and December 31, 2022, respectively, and is included in “Other accrued expenses” in the consolidated balance sheets. The long-term portion was $ 7.3 million and $ 7.9 million as of December 30, 2023 and December 31, 2022 , respectively, and is included in “Other long-term liabilities” in the consolidated balance sheets. Income Taxes: Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future. Such deferred income tax asset and liability computations are based on enacted tax laws and rates applicable to periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred and other tax assets and liabilities. Earnings per share: Earnings per share (“EPS”) is computed using the two-class method. The two-class method determines EPS for each class of common stock and participating securities according to dividends and their respective participation rights in undistributed earnings. Outstanding nonvested restricted stock incentive awards under the Company’s 2015 Plan contain nonforfeitable rights to dividends or dividend equivalents, which participate in undistributed earnings with common stock. These awards are classified as participating securities and are included in the calculation of basic earnings per share. Awards under the 2020 Plan do not contain nonforfeitable rights to dividends or dividend equivalents and are therefore not classified as participating securities. The dilutive impact of both the restricted stock awards and warrants are presented below, as applicable. Weighted average restricted stock awards that were not included in the diluted EPS calculations because they were anti-dilutive were 19,765 , 2,882 , and 13,614 for 2023, 2022, and 2021 respectively. Performance share unit awards are not included within the calculation of diluted EPS as the performance criteria has not been met as of the year ended December 30, 2023. The following table sets forth the computation of basic and diluted EPS: (In thousands, except per share amounts) 2023 2022 2021 Numerator: Net earnings $ 52,237 $ 34,518 $ 73,751 Adjustment for earnings attributable to participating securities ( 408 ) ( 404 ) ( 1,399 ) Net earnings used in calculating earnings per share $ 51,829 $ 34,114 $ 72,352 Denominator: Weighted average shares outstanding, including participating securities 34,211 35,279 35,639 Adjustment for participating securities ( 267 ) ( 413 ) ( 676 ) Shares used in calculating basic earnings per share 33,944 34,866 34,963 Effect of dilutive stock warrant 584 847 225 Effect of dilutive restricted stock awards 106 187 79 Shares used in calculating diluted earnings per share 34,634 35,900 35,267 Basic earnings per share $ 1.53 $ 0.98 $ 2.07 Diluted earnings per share $ 1.50 $ 0.95 $ 2.05 Stock-Based Employee Compensation: All share-based payments to Associates are generally recognized in the consolidated financial statements as compensation cost based on the fair value on the date of grant. The grant date closing price per share of SpartanNash stock is used to estimate the fair value of restricted stock awards and performance stock units. The value of the portion of awards expected to vest is recognized as expense over the requisite service period. Performance stock units require the Company to estimate expected achievement of performance targets over the performance period. This estimate involves judgment regarding future expectations of various financial performance measures. If there are changes in the Company's estimates of the level of financial performance measures expected to be achieved, the related stock-based compensation expense may be significantly increased or reduced in the period that the estimate changes. Stock Warrants: Stock warrants are accounted for as equity instruments and measured in accordance with ASC 718, Compensation – Stock Compensation. For awards granted to a customer which are not in exchange for distinct goods or services, the fair value of the awards earned based on service or performance conditions is recorded as a reduction of the transaction price, in accordance with ASC 606, Revenue from Contracts with Customers . To determine the fair value of the warrants in accordance with ASC 718, the Company uses pricing models based in part on assumptions for which management is required to use judgment. Based on the fair value of the awards, the Company determines the amount of warrant expense based on the customer’s achievement of vesting conditions, which is recorded as a reduction of net sales on the consolidated statement of earnings. The dilutive impact of stock warrants is determined using the treasury stock method. Shareholders’ Equity: The Company’s restated articles of incorporation provide that the Board of Directors may at any time, and from time to time, provide for the issuance of up to 10 million shares of preferred stock in one or more series, each with such designations as determined by the Board of Directors. At December 30, 2023 and December 31, 2022 , there were no shares of preferred stock outstanding. Advertising Costs: The Company’s advertising costs are expensed as incurred and are included in Selling, general and administrative expenses. Advertising expenses were $ 33.7 million, $ 37.6 million and $ 37.7 million in 2023, 2022 and 2021 , respectively. Interest Rate Swaps: The Company utilizes an interest rate swap contract to reduce its exposure to fluctuations in variable interest rates applicable to its credit facility. The Company values the interest rate swap using standard models and observable market inputs including SOFR interest rates and discount rates. The Company has designated its interest rate swap as a cash flow hedge. The change in the fair value of the interest rate swap is initially reported in "Other comprehensive (loss) income" in the consolidated statements of comprehensive income and subsequently reclassified to earnings in "Interest expense, net" in the consolidated statements of earnings when the hedged transactions affect earnings. Accumulated Other Comprehensive (Loss) Income (“AOCI”): The Company reports comprehensive income, which includes net earnings and other comprehensive (loss) income. Other comprehensive (loss) income refers to expenses, gains and losses that are not included in net earnings, such as postretirement liability adjustments and changes in the fair value of interest rate swaps, but rather are recorded directly to shareholders’ equity. These amounts are also presented in the consolidated statements of comprehensive income. Adoption of New Accounting Standards: As of December 30, 2023 and for the year then ended, there were no recently adopted accounting standards that had a material impact on the Company's consolidated financial statements. There were no recently issued accounting standards not yet adopted which would have a material effect on the Company's consolidated financial statements. |
Revenue
Revenue | 12 Months Ended |
Dec. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 2 – Revenue Sources of Revenue SpartanNash is a distributor, wholesaler and retailer with a global supply chain network. SpartanNash's customers span a diverse group of national accounts, independent and chain grocers, e-commerce retailers, U.S. military commissaries and exchanges, and the Company’s own brick-and-mortar grocery stores, pharmacies and fuel centers. SpartanNash distributes grocery and household goods, including fresh produce and its Our Family ® portfolio of products, to locations in all 50 states. The Company’s main sources of revenue include the following: Customer Supply Agreements (“CSAs") – The Company enters into CSAs (also known as Retail Sales and Service Agreements) with many of its retailer customers. These contracts obligate the Company to supply grocery and related products upon receipt of a purchase order from its customers. The contracts often specify minimum purchases a customer is required to make, in dollars or as a percentage of their total purchases, in order to earn certain rebates or incentives. In some cases, customers are required to repay advanced or loaned funds if they fail to meet purchase minimums or otherwise exit the supply agreement. Many of these contracts include various performance obligations other than providing grocery products, such as providing store resets, shelf tags, signage, or merchandising services. The Company has determined that these obligations are not material in the overall context of the contracts, and as such has not allocated transaction prices to these obligations. Revenue is recognized under these contracts when control of the product passes to the customer, which may happen before or after delivery depending upon specified shipping terms. The Company’s Wholesale customer base is diverse. Sales to one customer in the Wholesale segment represented 16 %, 16 %, and 17 % of the Company's net sales for 2023, 2022 and 2021 , respectively. No other single customer exceeded 10 % of the Company's net sales in any of the years presented. Contracts with Manufacturers and Brokers to supply the Defense Commissary Agency (“DeCA”) and Other Government Agencies – DeCA operates a chain of commissaries on U.S. military installations. DeCA contracts with manufacturers to obtain grocery products for the commissary system. Manufacturers either deliver the products to the commissaries themselves or, more commonly, contract with distributors such as SpartanNash to provide products to the commissaries. Manufacturers must authorize the distributors as their official representatives to DeCA, and the distributors must adhere to DeCA’s frequent delivery system procedures governing matters such as product identification, ordering and processing, information exchange and resolution of discrepancies. The Company obtains distribution contracts with manufacturers through competitive bidding processes and direct negotiations. As commissaries need to be restocked, DeCA identifies the manufacturer with which an order is to be placed, determines which distributor is the manufacturer’s official representative for a particular commissary or exchange location, and then places a product order with that distributor under DeCA’s master contract with the applicable manufacturer. The distributor selects that product from its existing inventory, delivers it to the commissary or port (in the case of overseas shipments) designated by DeCA, and bills the manufacturer for the product price plus a drayage fee that is typically based on a percentage of the purchase price, but may in some cases be based on a dollar amount per case or pound of product sold. The manufacturer then bills DeCA under the terms of its master contract. As control of the product passes to the customer upon delivery, revenue is recognized by SpartanNash at that time. Revenue is recognized for the full amount paid by the vendor (for product and drayage) as the Company is a principal in the transaction and therefore recognizes revenue on a gross basis for these contracts. The definition of a principal in the transaction is centered on controlling goods before they are transferred to the customer. Key considerations supporting that SpartanNash controls the goods for these contracts prior to transfer to the customer include the following: (i) the Company has the ability to obtain substantially all of the remaining benefits from the assets by selling the goods and/or by pledging the related assets as collateral for borrowings; (ii) the Company is required to bear the risk of inventory loss prior to transfer to the customer; (iii) the Company has shared responsibilities in the fulfillment and acceptability of the goods; and (iv) to a lesser extent, the Company has some discretion in establishing the price for the goods sold to DeCA. Retail Sales – The corporate-owned retail stores recognize revenue at the time the customer takes possession of the goods. While there are no formal contracts related to these sales, they are within the scope of ASC 606. Customer returns are not material. The Company does not recognize a sale when it sells gift cards and gift certificates or a reduction of sales when it awards fuel discounts; rather, the impact to revenue is recognized when the customer redeems the fuel discounts, gift card or gift certificate to purchase product. Disaggregation of Revenue The following table provides information about disaggregated revenue by type of products and customers for each of the Company’s reportable segments: 2023 (In thousands) Wholesale Retail Total Type of products: Center store (a) $ 2,678,297 $ 1,081,840 $ 3,760,137 Fresh (b) 2,153,564 1,048,759 3,202,323 Non-food (c) 1,985,816 512,679 2,498,495 Fuel — 165,684 165,684 Other 101,540 1,040 102,580 Total $ 6,919,217 $ 2,810,002 $ 9,729,219 Type of customers: Individuals $ — $ 2,808,962 $ 2,808,962 Independent retailers (d) 2,377,036 — 2,377,036 National accounts 2,218,003 — 2,218,003 Military (e) 2,277,966 — 2,277,966 Other 46,212 1,040 47,252 Total $ 6,919,217 $ 2,810,002 $ 9,729,219 2022 (In thousands) Wholesale Retail Total Type of products: Center store (a) $ 2,671,666 $ 1,073,765 $ 3,745,431 Fresh (b) 2,171,906 1,068,240 3,240,146 Non-food (c) 1,888,318 452,557 2,340,875 Fuel — 202,256 202,256 Other 113,346 1,046 114,392 Total $ 6,845,236 $ 2,797,864 $ 9,643,100 Type of customers: Individuals $ — $ 2,796,858 $ 2,796,858 Independent retailers (d) 2,363,597 — 2,363,597 National accounts 2,311,114 — 2,311,114 Military (e) 2,115,353 — 2,115,353 Other 55,172 1,006 56,178 Total $ 6,845,236 $ 2,797,864 $ 9,643,100 2021 (In thousands) Wholesale Retail Total Type of products: Center store (a) $ 2,419,163 $ 1,001,920 $ 3,421,083 Fresh (b) 2,027,020 992,897 3,019,917 Non-food (c) 1,783,229 427,872 2,211,101 Fuel — 157,236 157,236 Other 120,341 1,361 121,702 Total $ 6,349,753 $ 2,581,286 $ 8,931,039 Type of customers: Individuals $ — $ 2,580,277 $ 2,580,277 Independent retailers (d) 2,197,892 — 2,197,892 National accounts 2,211,458 — 2,211,458 Military (e) 1,882,602 — 1,882,602 Other 57,801 1,009 58,810 Total $ 6,349,753 $ 2,581,286 $ 8,931,039 (a) Center store includes dry grocery, frozen and beverages. (b) Fresh includes produce, meat, dairy, deli, bakery, prepared proteins, seafood and floral. (c) Non-food includes general merchandise, health and beauty care, tobacco products and pharmacy. (d) Independent retailers include sales to manufacturers, brokers and distributors. (e) Military represents the distribution of grocery products to U.S. military commissaries and exchanges, which primarily includes sales to manufacturers and brokers. Contract Assets and Liabilities Under its contracts with customers, the Company stands ready to deliver product upon receipt of a purchase order. Accordingly, the Company has no performance obligations under its contracts until its customers submit a purchase order. The Company does not receive pre-payment from its customers or enter into commitments to provide goods or services that have terms greater than one year . As the performance obligation is part of a contract that has an original expected duration of less than one year, the Company has applied the practical expedient under ASC 606 to omit disclosures regarding remaining performance obligations. Revenue recognized from performance obligations related to prior periods (for example, due to changes in estimated rebates and incentives impacting the transaction price) was not material in any period presented. For volume-based arrangements, the Company estimates the amount of the advanced funds earned by the retailers based on the expected volume of purchases by the retailer, and amortizes the advances as a reduction of the transaction price and revenue earned. These advances are not considered contract assets under ASC 606 as they are not generated through the transfer of goods or services to the retailers. These advances are included in Other assets, net within the consolidated balance sheets. When the Company transfers goods or services to a customer, payment is due subject to normal terms and is not conditional on anything other than the passage of time. Typical payment terms range from "due upon receipt" to due within 30 days, depending on the customer. At contract inception, the Company expects that the period of time between the transfer of goods to the customer and when the customer pays for those goods will be less than one year, which is consistent with the Company’s standard payment terms. Accordingly, the Company has elected the practical expedient to not adjust for the effects of a significant financing component. As a result, these amounts are recorded as receivables and not contract assets. The Company had no contract assets for any period presented. The Company does not typically incur incremental costs of obtaining a contract that are contingent upon successful contract execution and would therefore be capitalized. Concentration of Credit Risk In the ordinary course of business, the Company may advance funds to certain independent retailers (“customer advances”) which are earned by the retailers primarily through achieving specified purchase volume requirements, as outlined in their supply agreements with the Company. These customer advances must be repaid if the purchase volume requirements are not met. The collectability of customer advances is not assured. In the ordinary course of business, the Company also subleases and assigns certain leases to third parties. As of December 30, 2023 , the Company estimates the present value of its maximum potential obligations for subleases and assigned leases to be approximately $ 2.9 million and $ 7.6 million, respectively. The Company may also provide financial assistance in the form of loans to certain independent retailers for inventories, store fixtures and equipment and store improvements. Loans are generally secured by liens on real estate, inventory and/or equipment, personal guarantees and other types of collateral, and are generally repayable over a period of three to ten years . The Company establishes reserves based upon assessments of the credit risk of specific customers, collateral value, historical trends and other information. The Company believes that adequate provision has been recorded for any uncollectable amounts. In addition, the Company may guarantee debt of independent retailers. In the event these retailers are unable to meet their debt service payments or otherwise experience an event of default, the Company would be unconditionally liable for the outstanding balance of their debt, which would be due in accordance with the underlying agreements. Changes to the balance of the allowance for credit losses were as follows: Allowance for Credit Losses Current Accounts Long-term (In thousands) and Notes Notes Total Balance at January 2, 2021 $ 6,232 $ 371 $ 6,603 Changes in credit loss estimates ( 1,101 ) 360 ( 741 ) Write-offs charged against the allowance ( 717 ) — ( 717 ) Balance at January 1, 2022 4,414 731 5,145 Changes in credit loss estimates 2,539 217 2,756 Write-offs charged against the allowance ( 855 ) — ( 855 ) Balance at December 31, 2022 6,098 948 7,046 Changes in credit loss estimates ( 929 ) 264 ( 665 ) Write-offs charged against the allowance ( 558 ) — ( 558 ) Balance at December 30, 2023 $ 4,611 $ 1,212 $ 5,823 During 2023, 2022 and 2021 , the Company recognized bad debt expense of $ 0.3 million, $ 1.1 million and $ 0.4 million, respectively, related to direct write-offs of uncollectable amounts. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 3 – Property and Equipment Property and equipment consist of the following: December 30, December 31, (In thousands) 2023 2022 Land and improvements $ 91,031 $ 91,859 Buildings and improvements 646,707 612,471 Equipment 799,721 724,077 Construction in progress 59,295 53,443 Total property and equipment 1,596,754 1,481,850 Less accumulated depreciation and amortization 947,683 871,630 Property and equipment, net $ 649,071 $ 610,220 Depreciation expense was $ 68.0 million, $ 66.7 million and $ 65.9 million in 2023, 2022 and 2021 respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 4 – Goodwill and Other Intangible Assets The Company has two reporting units, Wholesale and Retail. Changes in the carrying amount of goodwill were as follows: (In thousands) Wholesale Retail Total Balance at January 1, 2022 $ 181,035 $ — $ 181,035 Acquisitions — 1,125 1,125 Balance at December 31, 2022 and December 30, 2023 $ 181,035 $ 1,125 $ 182,160 The Company reviews goodwill and other intangible assets for impairment annually, during the fourth quarter of each year, and more frequently if circumstances indicate impairment is more likely than not to have occurred. Testing goodwill and other intangible assets for impairment requires management to make significant estimates about the Company’s future performance, cash flows, and other assumptions that can be affected by potential changes in economic, industry or market conditions, business operations, competition, or the Company’s stock price and market capitalization. During the Company's 2023 annual impairment review within the Wholesale reporting unit, projected cash flows were discounted based on a weighted average cost of capital ("WACC") of 9.6 %. This WACC was developed from adjusted market-based and company specific factors, current interest rates, equity risk premiums, and other market-based expectations regarding expected investment returns. The development of the WACC requires estimates of an equity rate of return and a debt rate of return, which are specific to the industry in which the Wholesale reporting unit operates. The Company concluded that the fair value of the Wholesale reporting unit was substantially in excess of its carrying value in the annual review. The following table reflects the components of amortized intangible assets, included in “Intangible assets, net” on the consolidated balance sheets: December 30, 2023 December 31, 2022 Gross Gross Carrying Accumulated Carrying Accumulated (In thousands) Amount Amortization Amount Amortization Non-compete agreements $ 3,545 $ 3,190 $ 3,545 $ 2,621 Pharmacy customer prescription lists 3,869 2,853 4,168 2,598 Customer relationships 57,937 26,146 57,937 22,484 Franchise fees 1,209 661 1,165 598 Total $ 66,560 $ 32,850 $ 66,815 $ 28,301 The weighted average amortization periods for amortizable intangible assets as of December 30, 2023 are as follows: Non-compete agreements 6.4 years Pharmacy customer prescription lists 8.1 years Customer relationships 16.4 years Franchise fees 10.0 years Amortization expense for intangible assets was $ 4.9 million, $ 5.0 million and $ 5.2 million for 2023, 2022 and 2021, respectively. Estimated amortization expense for each of the five succeeding fiscal years is as follows: (In thousands) 2024 2025 2026 2027 2028 Amortization expense $ 4,587 $ 4,190 $ 3,675 $ 3,653 $ 3,645 The Company has indefinite-lived intangible assets that are not amortized, consisting primarily of indefinite-lived trade names and liquor licenses, totaling $ 67.8 million as of both December 30, 2023 and December 31, 2022. Indefinite lived intangible assets are tested for impairment at least annually, and as needed if an indicator of potential impairment exists. A qualitative assessment was performed to determine whether it is more likely than not that an indefinite lived intangible asset is impaired. If the qualitative assessment supports that it is more likely than not that the fair value of the indefinite lived intangible asset exceeds its carrying value, a quantitative impairment test is not required. If the qualitative assessment does not support the fair value of the indefinite lived intangible asset, then a quantitative assessment is performed. Indefinite lived intangible assets are measured at fair value using Level 3 inputs under the fair value hierarchy, as further described in Note 7. The fair value of indefinite lived intangible assets is determined by estimating the amount and timing of net future cash flows generated from the use of the asset, generally using estimated revenue growth rates and profitability rates and, in the case of the relief-from-royalty methodology, royalty rates. Future cash flows are discounted based on the WACC of the reporting unit in which the asset resides, determined using current interest rates, equity risk premiums, and other market-based expectations regarding expected investment returns, as well as estimates of industry-specific equity and debt rates of return. The Company concluded that it is more likely than not that the fair value of the indefinite lived intangible assets exceed their carrying value during the annual qualitative assessment. |
Restructuring, Asset Impairment
Restructuring, Asset Impairment and Other Charges | 12 Months Ended |
Dec. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Asset Impairment and Other Charges | Note 5 – Restructuring, Asset Impairment and Other Charges The following table provides the activity of reserves for closed properties for 2023, 2022 and 2021. Reserves for closed properties recorded in the consolidated balance sheets are included in “Other accrued expenses” in Current liabilities and “Other long-term liabilities” in Long-term liabilities based on when the obligations are expected to be paid. Lease and (In thousands) Ancillary Costs Severance Total Balance at January 2, 2021 $ 3,349 $ 114 $ 3,463 Provision for closing charges 1,509 — 1,509 Provision for severance — 362 362 Lease termination adjustments ( 220 ) — ( 220 ) Changes in estimates 2 — 2 Accretion expense 91 — 91 Payments ( 1,607 ) ( 476 ) ( 2,083 ) Balance at January 1, 2022 3,124 — 3,124 Provision for closing charges 1,837 — 1,837 Provision for severance — 9 9 Lease termination adjustments ( 86 ) — ( 86 ) Changes in estimates 28 — 28 Accretion expense 67 — 67 Payments ( 993 ) ( 9 ) ( 1,002 ) Balance at December 31, 2022 3,977 — 3,977 Provision for severance — 21 21 Changes in estimates ( 258 ) — ( 258 ) Accretion expense 102 — 102 Payments ( 844 ) ( 21 ) ( 865 ) Balance at December 30, 2023 $ 2,977 $ — $ 2,977 Included in the liability are lease-related ancillary costs from the date of site closure to the end of the remaining lease term. Restructuring, asset impairment and other charges included in the consolidated statements of earnings consisted of the following: (In thousands) 2023 2022 2021 Asset impairment charges (a) $ 11,749 $ 5,086 $ 3,783 Provision for closing charges — 1,837 1,509 Gain on sales of assets related to closed facilities (b) ( 2,614 ) ( 6,324 ) ( 2,607 ) Provision for severance (c) 21 9 362 Other costs associated with site closures (d) 584 271 636 Lease termination adjustments (e) — ( 102 ) ( 799 ) Changes in estimates (f) ( 550 ) 28 2 Total $ 9,190 $ 805 $ 2,886 (a) In the current year, asset impairment charges of $ 8.0 million were incurred in the Wholesale segment related to the Company's continued supply chain network optimization in response to customer demand changes. Additional charges in the current year were incurred related to two store closures in the Retail segment and impairment losses related to a distribution location that sustained storm damage in the Wholesale segment. Asset impairment charges in 2022 were incurred primarily in the Retail segment and relate to restructuring of the Retail segment's e-commerce delivery model and a store closure . In 2021, asset impairment charges were incurred primarily in the Retail segment and relate to store closures, as well as site closures in connection with the Company’s supply chain transformation initiatives within the Wholesale segment. (b) Gain on sales of assets in the current year primarily relate to the sale of a store within the Retail segment. In 2022, gain on sales of assets primarily relates to the sales of real property of previously closed locations within both the Wholesale and Retail segments. Gain on sales of assets in 2021 primarily relate to sales of pharmacy customer lists, equipment, and real estate associated with the store closings in the Retail segment, in addition to gains on sale of vacant land in the Wholesale segment. (c) Severance charges relate to closures in the Wholesale segment as well as Retail store closings. (d) Other costs net activity in the current year primarily relates to Retail store closings. In the prior year, activity primarily relates to restructuring activity within the Wholesale segment and Retail store closings. (e) Lease termination adjustments represent the benefits recognized in connection with early lease buyouts for previously closed sites. Payments made in connection with lease buyouts were applied to reserves for closed properties and lease liabilities, as applicable. (f) Changes in estimates primarily relate to revised estimates for turnover and other lease ancillary costs associated with previously closed locations. The current year also included a $ 0.3 million gain for additional insurance proceeds received related to a distribution location that sustained significant storm damage within the Wholesale segment. Long-lived assets which are not recoverable are measured at fair value on a nonrecurring basis using Level 3 inputs under the fair value hierarchy, as further described in Note 7. In the current year, long-lived assets with a book value of $ 20.6 million were measured at a fair value of $ 8.9 million, resulting in impairment charges of $ 11.7 million. In the prior year, long-lived assets with a book value of $ 5.2 million were measured at a fair value of $ 0.1 million, resulting in impairment charges of $ 5.1 million. In 2021, long-lived assets consisting of property and equipment with a book value of $ 27.5 million were measured at a fair value of $ 23.7 million, resulting in impairment charges of $ 3.8 million. The fair value of long-lived assets is determined by estimating the amount and timing of net future cash flows, discounted using a risk-adjusted rate of interest. The Company estimates future cash flows based on historical results of operations, external factors expected to impact future performance, experience and knowledge of the geographic area in which the assets are located, and when necessary, consultations with real estate brokers. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 6 – Long-Term Debt Long-term debt consists of the following: December 30, December 31, (In thousands) 2023 2022 Senior secured revolving credit facility, due November 2027 $ 522,492 $ 445,880 Finance lease liabilities (Note 10) 74,639 57,515 Other, 3.71 % - 4.36 %, due 2024 - 2033 4,743 4,813 Total debt - Principal 601,874 508,208 Unamortized debt issuance costs ( 4,394 ) ( 4,627 ) Total debt 597,480 503,581 Less current portion 8,813 6,789 Total long-term debt and finance lease liabilities $ 588,667 $ 496,792 In 2023, the Company entered into amendments (the "Amendments") to the Company's Amended and Restated Loan and Security Agreement (the "Credit Agreement"). The principal terms of the Amendments included increasing the size of the Tranche A portion of the Company's revolving credit facility by $ 130 million in 2023. The Credit Agreement provides for a Tranche A revolving loan of up to $ 1.17 billion and a Tranche A-1 revolving loan with $ 40 million of capacity. The Company has the ability to increase the amount borrowed under the Credit Agreement by an additional $ 195 million, subject to certain conditions. The Company’s obligations under the Credit Agreement are secured by substantially all of the Company’s personal and real property. The Company may repay all loans in whole or in part at any time without penalty. Availability under the Credit Agreement is based upon advance rates on certain asset categories owned by the Company, including, but not limited to the following: inventory, accounts receivable, real estate, prescription lists, cigarette tax stamps, and rolling stock. The Credit Agreement imposes certain restrictions on the Company, including limitations on dividends and investments, limitations on the Company’s ability to incur debt, make loans, acquire other companies, change the nature of the Company’s business, enter a merger or consolidation, or sell assets. These requirements can be more restrictive depending upon the Company’s Excess Availability, as defined under the Credit Agreement. Borrowings under the credit facility bear interest at the Company’s option as either SOFR loans or Base Rate loans, subject to a grid based upon Excess Availability. The interest rate terms for each of the aforementioned tranches are as follows: Credit Outstanding as of Facility December 30, 2023 Tranche (In thousands) SOFR Rate Base Rate Tranche A $ 485,379 SOFR plus 1.25% to 1.50% Greater of: (i) the Federal Funds Rate plus 0.75% to 1.00% (ii) the SOFR Rate plus 1.25% to 1.50% (iii) the prime rate plus 0.25% to 0.50% Tranche A-1 $ 37,113 SOFR plus 2.25% to 2.50% Greater of: (i) the Federal Funds Rate plus 1.75% to 2.00% (ii) the SOFR Rate plus 2.25% to 2.50% (iii) the prime rate plus 1.25% to 1.50% The Company also incurs an unused line of credit fee on the unused portion of the loan commitments at a rate of 0.25 %. The Credit Agreement requires that the Company maintain Excess Availability of 10 % of the borrowing base, as defined in the Credit Agreement. The Company is in compliance with all financial covenants as of December 30, 2023 and had Excess Availability after the 10 % requirement of $ 483.2 million and $ 447.8 million at December 30, 2023 and December 31, 2022 , respectively. The Credit Agreement provides for the issuance of letters of credit, of which $ 17.7 million were outstanding as of December 30, 2023 and December 31, 2022. The weighted average interest rate for all borrowings, including loan fee amortization, was 7.03 % for 2023. Refer to Note 8 for further information on the interest rate swap. At December 30, 2023, aggregate annual maturities and scheduled payments of long-term debt are as follows: (In thousands) 2024 2025 2026 2027 2028 Thereafter Total Total borrowings $ 8,813 $ 8,693 $ 10,024 $ 530,098 $ 7,530 $ 36,716 $ 601,874 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 7 – Fair Value Measurements ASC 820, Fair Value Measurement, prioritizes the inputs to valuation techniques used to measure fair value into the following hierarchy: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: Unobservable inputs for the asset or liability, reflecting the reporting entity’s own assumptions about the assumptions that market participants would use in pricing. Financial instruments include cash and cash equivalents, accounts and notes receivable, accounts payable and long-term debt. The carrying amounts of cash and cash equivalents, accounts and notes receivable, and accounts payable approximate fair value because of the short-term maturities of these financial instruments. For discussion of the fair value measurements related to goodwill, and long-lived asset impairment charges, refer to Note 4 and Note 5. At December 30, 2023 and December 31, 2022, the book value and estimated fair value of the Company’s debt instruments, excluding debt financing costs, were as follows: December 30, December 31, (In thousands) 2023 2022 Book value of debt instruments, excluding debt financing costs: Current maturities of long-term debt and finance lease liabilities $ 8,813 $ 6,789 Long-term debt and finance lease liabilities 593,061 501,419 Total book value of debt instruments 601,874 508,208 Fair value of debt instruments, excluding debt financing costs 603,117 507,668 Excess (deficit) of fair value over book value $ 1,243 $ ( 540 ) The estimated fair value of debt is based on market quotes for instruments with similar terms and remaining maturities (Level 2 inputs and valuation techniques). The Company's interest rate swap agreement is considered a Level 2 instrument. The Company values the interest rate swap using standard models and observable market inputs including SOFR interest rates and discount rates, which are considered Level 2 inputs. The location and the fair value of the interest rate swap agreement in the consolidated balance sheets is disclosed in Note 8. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Note 8 – Derivatives Hedging of Interest Rate Risk During the first quarter of 2023, the Company entered into an interest rate swap contract to mitigate its exposure to changes in variable interest rates. The Company's interest rate swap is designated as a cash flow hedge as of both the effective date, March 17, 2023, and as of December 30, 2023. The interest rate swap is reflected at its fair value in the consolidated balance sheets. Refer to Note 7 for further information on the fair value of the interest rate swap. Details of the pay-fixed, receive-floating interest rate swap contract as of December 30, 2023 are as follows: Effective Date Maturity Date Notional Value Pay Fixed Rate Receive Floating Rate Floating Rate Reset Terms March 17, 2023 November 17, 2027 $ 150 3.646 % One-Month CME Term SOFR Monthly The Company performed an initial quantitative assessment of hedge effectiveness using the change-in-variable-cash-flows method. Under this method, the Company assessed the effectiveness of the hedging relationship by comparing the present value of the cumulative change in the expected future cash flows on the variable leg of the interest rate swap with the present value of the cumulative change in the expected future interest cash flows on the variable-rate debt. The Company determined the interest rate swap to be highly effective. To assess for continued hedge effectiveness, the Company performs a retrospective and prospective qualitative assessment each quarter. The Company also monitors the credit risk of the counterparty on an ongoing basis. The change in the fair value of the interest rate swap is initially reported in "Other comprehensive income" in the consolidated statements of comprehensive income and subsequently reclassified to earnings in "Interest expense, net" in the consolidated statements of earnings when the hedged transactions affect earnings. The location and the fair value of the interest rate swap in the consolidated balance sheets as of December 30, 2023 is as follows: Derivative Fair Value (In thousands) Consolidated Balance Sheets Location December 30, 2023 Cash Flow Hedge: Interest rate swap Prepaid expenses and other current assets $ 1,721 Interest rate swap Other long-term liabilities 1,914 Interest rate swap Accumulated other comprehensive income ( 316 ) The location and amount of gains or losses recognized in the consolidated statements of earnings for the interest rate swap, presented on a pre-tax basis, are as follows: 2023 (In thousands) Interest expense, net Total amounts of expense line items presented in the consolidated statements of $ 39,887 Gain on cash flow hedging relationships: Gain reclassified from comprehensive income into earnings 1,832 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9 – Commitments and Contingencies The Company is engaged from time-to-time in routine legal proceedings incidental to its business. The Company does not believe that these routine legal proceedings, taken as a whole, will have a material impact on its business or financial condition. While the ultimate effect of such actions cannot be predicted with certainty, management believes that their outcome will not result in an adverse effect on the Company’s consolidated financial position, operating results or liquidity. The Company subleases property at certain locations and for 2023, 2022 and 2021, received rental income of $ 3.8 million, $ 3.9 million and $ 4.4 million, respectively. In the event of customer default, the Company would be responsible for fulfilling these lease obligations. Future payment obligations under these leases are disclosed in Note 10. Contingencies related to credit risk and collectability are disclosed in Note 2. Unions represent approximately 7 % of SpartanNash’s Associates. These Associates are covered by collective bargaining agreements (“CBAs”). The facilities covered by CBAs, the unions representing the covered Associates and the expiration dates for each existing CBA are provided in the following table: Distribution Center Locations Union Locals Expiration Dates Lima, Ohio Warehouse IBT 908 January 2025 Lima, Ohio Drivers IBT 908 January 2025 Bellefontaine, Ohio GTL Truck Lines, Inc. IBT 908 February 2025 Bellefontaine, Ohio General Merchandise Service Division IBT 908 February 2025 Norfolk, Virginia IBT 822 April 2025 Columbus, Georgia IBT 528 September 2025 Grand Rapids, Michigan IBT 406 April 2026 Landover, Maryland IBT 639 February 2027 The Company contributes to the Central States Southeast and Southwest Pension Fund (the “Central States Plan” or the “Plan”), a multi-employer pension plan, in accordance with provisions in place in collective bargaining agreements covering its supply chain operations in Bellefontaine and Lima, Ohio and Grand Rapids, Michigan. This Plan provides retirement benefits to participants based on their service to contributing employers. The benefits to participants under the Plan are paid from assets held in trust for that purpose. An equal number of Trustees are appointed by a combination of contributing employers the applicable union(s); however, no representative of SpartanNash is currently serving as a trustee of the Plan. The trustees are responsible for determining the level of benefits to be provided to participants, as well as for such matters as the investment of the assets held in trust and the overall administration of the plan. The Central States Plan implemented a rehabilitation plan on March 25, 2008. The Company's contributions to the Central States Plan are established by each applicable collective bargaining agreement and vary by location. However, required contributions may increase based on the funded status of the Plan and legal requirements. On January 12, 2023, the Central States Plan received approximately $ 35.8 billion in Special Financial Assistance ("SFA"), inclusive of interest, which is designed to alleviate the risk of insolvency of the Plan. On March 31, 2023, in accordance with the Pension Protection Act ("PPA"), the plan actuary certified that the Plan was considered to be in "critical" zone status for the plan year beginning January 1, 2023. Due to the receipt of the SFA, the Central States Plan has stated that it expects it "will be funded well into the future". Despite the expectations of the Plan, the Company views the Plan's solvency as an ongoing risk factor. The risk of participating in a multi-employer pension plan is different from the risk associated with single-employer plans in the following respects: a. Assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers. b. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. c. If a company chooses to stop participating in a multi-employer plan, makes market exits such as closing a distribution center without opening another one in the same locale, or otherwise has participation in the plan drop below certain levels, the company may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. Based on the most recent information available to the Company, management believes that the value of assets held in trust to pay benefits covers the present value of actuarial accrued liabilities in the Central States Plan. Management is not aware of any significant change in funding levels in the Plan since December 30, 2023. Due to uncertainty regarding future factors that could trigger a withdrawal liability, as well as the absence of specific information regarding matters such as the Plan’s current financial situations, we are unable to determine with certainty the current amount of the Plan’s funding and/or SpartanNash’s current potential withdrawal liability exposure in the event of a future withdrawal from the Plan. Any adjustment for withdrawal liability would be recorded when it is probable that a liability exists and can be reasonably determined. |
Leases
Leases | 12 Months Ended |
Dec. 30, 2023 | |
Leases [Abstract] | |
Leases | Note 10 – Leases A portion of the Company’s retail stores and warehouses operate in leased facilities. The Company also leases the majority of the tractors and trailers within its fleet and certain other assets. Most of the property leases contain multiple renewal options, which generally range from one to ten years in length. In those locations in which it is economically feasible to continue to operate, management expects that renewal options will be exercised as they come due. The terms of certain leases contain provisions requiring payment of variable rent based on sales and payment of executory costs such as property taxes, utilities, insurance, maintenance and other occupancy costs applicable to the leased premises or, in the case of transportation equipment, provisions requiring payment of variable rent based upon miles driven. Certain properties or portions thereof are subleased to others. As most of the Company’s leases do not reference an implicit discount rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The components of lease cost were as follows: (In thousands) 2023 2022 2021 Operating lease cost $ 55,807 $ 57,876 $ 58,410 Short-term lease cost 8,367 7,576 8,469 Finance lease cost Amortization of assets 8,244 6,134 4,645 Interest on lease liabilities 4,454 3,369 3,005 Variable rent 348 236 162 Sublease income ( 3,845 ) ( 3,907 ) ( 4,356 ) Total net lease cost $ 73,375 $ 71,284 $ 70,335 Supplemental balance sheet information related to leases was as follows: December 30, December 31, (In thousands) 2023 2022 Operating leases: Operating lease assets $ 242,146 $ 257,047 Current portion of operating lease liabilities $ 41,979 $ 45,453 Noncurrent operating lease liabilities 226,118 239,062 Total operating lease liabilities $ 268,097 $ 284,515 Finance leases: Property and equipment, at cost $ 92,598 $ 73,739 Accumulated amortization ( 25,472 ) ( 21,727 ) Property and equipment, net $ 67,126 $ 52,012 Current portion of finance lease liabilities $ 7,739 $ 5,791 Noncurrent finance lease liabilities 66,900 51,724 Total finance lease liabilities $ 74,639 $ 57,515 Weighted average remaining lease term (in years): Operating leases 7.6 7.5 Finance leases 9.0 9.6 Weighted average discount rate: Operating leases 5.9 % 5.4 % Finance leases 6.8 % 6.9 % Supplemental cash flow and other information related to leases was as follows: (In thousands) 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 58,251 $ 61,103 $ 62,590 Operating cash flows used for finance leases 4,450 3,372 3,005 Financing cash flows used for finance leases 6,897 6,045 4,738 Lease assets obtained in exchange for lease liabilities: Total operating lease liabilities 39,018 23,027 36,867 Total finance lease liabilities 17,833 21,032 4,238 The Company’s total future lease commitments under operating and finance leases in effect at December 30, 2023 are as follows: Operating Finance (In thousands) Leases Leases Total 2024 $ 56,296 $ 12,487 $ 68,783 2025 53,105 12,186 65,291 2026 46,824 11,467 58,291 2027 41,147 10,683 51,830 2028 31,593 10,086 41,679 Thereafter 108,062 42,671 150,733 Total 337,027 99,580 436,607 Less interest 68,930 24,941 93,871 Present value of lease liabilities 268,097 74,639 342,736 Less current portion 41,979 7,739 49,718 Long-term lease liabilities $ 226,118 $ 66,900 $ 293,018 Certain retail store facilities, either owned or obtained through leasing arrangements, are leased to others. A majority of the leases provide for minimum rent obligations and contain renewal options. Certain of the leases contain escalation clauses and contingent rentals based upon stipulated sales volumes. Owned assets, included in property and equipment, which are leased to others are as follows: December 30, December 31, (In thousands) 2023 2022 Land and improvements $ 7,147 $ 7,154 Buildings 27,227 26,623 Owned assets leased to others 34,374 33,777 Less accumulated amortization and depreciation 12,369 11,473 Net owned assets leased to others $ 22,005 $ 22,304 Future minimum rentals to be received under leases in effect at December 30, 2023 are as follows: (In thousands) 2024 2025 2026 2027 2028 Thereafter Total Owned property $ 4,250 $ 3,279 $ 3,033 $ 2,653 $ 2,417 $ 14,083 $ 29,715 Leased property 3,297 2,389 1,422 857 198 15 8,178 Total $ 7,547 $ 5,668 $ 4,455 $ 3,510 $ 2,615 $ 14,098 $ 37,893 |
Associate Retirement Plans
Associate Retirement Plans | 12 Months Ended |
Dec. 30, 2023 | |
Retirement Benefits [Abstract] | |
Associate Retirement Plans | Note 11 – Associate Retirement Plans The Company provides salary deferral defined contribution plans to substantially all of the Company’s Associates not covered by CBAs. Associates covered by CBAs at the Company’s Columbus, Georgia; Norfolk, Virginia; and Landover, Maryland facilities all participate in a defined contribution plan; the remaining Associates covered under CBAs participate in a multi-employer pension plan. Defined Contribution Plans Expense for employer matching contributions made to defined contribution plans totaled $ 12.0 million, $ 12.0 million and $ 11.8 million in 2023, 2022 and 2021, respectively. Executive Compensation Plans The Company has a deferred compensation plan for a select group of management personnel or highly compensated Associates. The plan is unfunded and permits participants to defer receipt of a portion of their base salary, annual bonus, or long-term incentive compensation which would otherwise be paid to them. The deferred amounts, plus earnings, are distributed following the Associate’s termination of employment. Earnings are based on the performance of hypothetical investments elected by the participant from a portfolio of investment options. Postretirement Medical Plans SpartanNash Company and certain subsidiaries provide healthcare benefits to retired Associates under the SpartanNash Company Retiree Medical Plan (the “Retiree Medical Plan” or "Plan"). Former Spartan Stores, Inc. Associates hired prior to January 1, 2002 who were not covered by CBAs during their employment, who have at least 10 years of service and have attained age 55 upon retirement qualify as “covered associates.” Effective June 30, 2022, the Company has amended the Retiree Medical Plan. In connection with the amendment, the Company will make lump sum cash payments to all active and retired participants in lieu of future monthly benefits and reimbursements previously offered under the Plan. As a result of the amendment effective June 30, 2022, the Plan obligation was remeasured, resulting in a reduction to the obligation of $ 6.6 million and a corresponding prior service credit in AOCI, which will be amortized to net periodic postretirement benefit income over the remaining period until the final payment on July 1, 2024. On July 1, 2023 and July 1, 2022, the Company made lump sum payments to retired participants totaling $ 1.3 million and $ 2.0 million, respectively. The payments constituted partial settlements of the Plan, which resulted in the recognition within net periodic postretirement expense of $ 0.3 million and $ 0.7 million on July 1, 2023 and July 1, 2022, respectively, related to the net actuarial loss within AOCI. The remaining payment, which relates to active participants, is expected to be made on or about July 1, 2024. The following tables set forth the actuarial present value of benefit obligations, funded status, changes in benefit obligations and plan assets, weighted average assumptions used in actuarial calculations and components of net periodic benefit costs for the Company’s significant postretirement benefit plans, excluding multi-employer plans. The current accrued, and noncurrent accrued benefit costs associated with postretirement benefits are reported in “Accrued payroll and benefits,” and “Other long-term liabilities,” respectively, in the consolidated balance sheets. Retiree Medical Plan December 30, December 31, (In thousands, except percentages) 2023 2022 Funded Status Projected/Accumulated benefit obligation: Balance at beginning of year $ 2,412 $ 11,031 Service cost — 76 Interest cost 85 185 Actuarial loss 23 30 Plan amendment — ( 6,614 ) Benefits paid ( 1,284 ) ( 2,296 ) Balance at end of year $ 1,236 $ 2,412 Fair value of plan assets: Balance at beginning of year $ — $ — Company contributions 1,284 2,296 Benefits paid ( 1,284 ) ( 2,296 ) Balance at end of year $ — $ — Unfunded status $ ( 1,236 ) $ ( 2,412 ) Components of net amount recognized in consolidated balance sheets: Current liabilities $ ( 1,236 ) $ ( 1,270 ) Noncurrent liabilities — ( 1,142 ) Net liability $ ( 1,236 ) $ ( 2,412 ) Amounts recognized in AOCI: Net actuarial loss $ 217 $ 743 Prior service credit ( 1,653 ) ( 4,960 ) Accumulated other comprehensive income $ ( 1,436 ) $ ( 4,217 ) Weighted average assumptions at measurement date: Discount rate 5.65 % 5.34 % Ultimate health care cost trend rate N/A N/A Retiree Medical Plan (In thousands, except percentages) 2023 2022 2021 Components of net periodic benefit (income) cost: Service cost $ — $ 76 $ 187 Interest cost 85 185 226 Amortization of prior service credit ( 3,307 ) ( 1,653 ) — Recognized actuarial net loss 249 200 230 Net periodic benefit (income) expense $ ( 2,973 ) $ ( 1,192 ) $ 643 Settlement expense 299 740 — Total net periodic benefit (income) cost $ ( 2,674 ) $ ( 452 ) $ 643 Weighted average assumptions used to determine net periodic benefit (income) cost: Discount rate 5.62 % 2.90 % 2.57 % Assumed healthcare cost trend rates have a significant effect on the amounts reported for the Retiree Medical Plan. Assumed current healthcare cost trend rates used to determine net periodic benefit cost were as follows: 2023 2022 2021 Post-65 N/A N/A 7.00 % The Company expects to make post-retirement medical benefit payments of $ 1.3 million in 2024. The Company is not currently expecting to make any future post-retirement medical benefit payments after 2024. Multi-Employer Health and Welfare Plans In addition to the plans described above, the Company participates in the Michigan Conference of Teamsters and Ohio Conference of Teamsters Health and Welfare plans. The Company contributes to these multi-employer health and welfare plans under the terms contained in existing CBAs, including the requisite contribution amounts set forth within such CBAs. The health and welfare plans provide medical, dental, pharmacy, vision, and other ancillary benefits to active Associates and retirees, as determined under the terms of the plan. Although the plans may provide certain benefits to retired employees, the Company’s only contribution obligation is to make contributions in amounts tied to the hours worked by its active employees. As a result, the plan does not constitute a postretirement benefit plan of the Company. Because the plans aggregate contributions from multiple employers, the Company is unable to determine how much of its contributions are allocated to benefits paid to its active employees and those, if any, that are allocated to benefits paid to other employer’s active employees and/or postretirement benefits. These types of plans often have a significant surplus of funds held in reserve in excess of claims incurred, and there is no potential withdrawal liability related to the Company’s participation in the plans. With respect to the Company’s participation in these plans, expense is recognized as contributions are made. The Company contributed $ 17.0 million, $ 13.4 million and $ 13.2 million to these plans in 2023, 2022 and 2021, respectively. Multi-Employer Pension Plan The Company also contributes to the Central States Plan, a multi-employer plan defined previously, under the terms of CBAs that cover its union-represented Associates, including the requisite contribution amounts set forth within such CBAs. The Company is party to four CBAs that require contributions to the Central States Plan with expiration dates ranging from January 2025 to April 2026. These CBAs cover warehouse personnel and drivers in Grand Rapids, Michigan and Bellefontaine and Lima, Ohio. With respect to the Company’s participation in the Central States Plan (EIN 36-60442343 / Pension Plan Number 001), expense is recognized as contributions are made to the Central States Plan. The Company contributed $ 13.1 million, $ 12.3 million and $ 13.5 million to the Central States Plan in 2023, 2022 and 2021 , respectively. The contributions made by the Company represent less than five percent of the Plan’s total contributions in 2023. Refer to Note 9, for further information regarding the Company’s participation in the Central States Plan. As of the date the consolidated financial statements were issued, an annual report for the Central States Plan on IRS Form 5500 was not publicly available for the plan year ended December 31, 2023. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income or Loss | 12 Months Ended |
Dec. 30, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income or Loss ("AOCI") | Note 12 – Accumulated Other Comprehensive Income or Loss ("AOCI") AOCI represents the cumulative balance of other comprehensive income (loss), net of tax, as of the end of the reporting period. For the Company, the activity relates to postretirement benefit plans and an interest rate swap, including those described in Notes 11 and 8, respectively. Changes in AOCI are as follows: (In thousands) 2023 2022 2021 Postretirement benefit plans: Balance at beginning of the year, net of tax $ 2,979 $ ( 1,455 ) $ ( 2,276 ) Other comprehensive income before reclassifications 203 6,576 837 Income tax expense ( 51 ) ( 1,614 ) ( 203 ) Other comprehensive income, net of tax, before reclassifications 152 4,962 634 Reclassification into net earnings (a) ( 2,677 ) ( 701 ) 250 Income tax benefit (expense) (b) 658 173 ( 63 ) Amounts reclassified out of AOCI, net of tax ( 2,019 ) ( 528 ) 187 Other comprehensive (loss) income, net of tax ( 1,867 ) 4,434 821 Balance at end of the year, net of tax $ 1,112 $ 2,979 $ ( 1,455 ) Interest rate swap: Balance at beginning of the year, net of tax $ — $ — $ — Other comprehensive income before reclassifications 1,419 — — Income tax expense ( 332 ) — — Other comprehensive income, net of tax, before reclassifications 1,087 — — Reclassification into net earnings (c) ( 1,832 ) — — Income tax benefit (b) 429 — — Amounts reclassified out of AOCI, net of tax ( 1,403 ) — — Other comprehensive loss, net of tax ( 316 ) — — Balance at end of the year, net of tax $ ( 316 ) $ — $ — Total accumulated other comprehensive income (loss) $ 796 $ 2,979 $ ( 1,455 ) (a) Reclassified from AOCI into Other, net, or Selling, general and administrative expense. Amounts include amortization of net actuarial loss, amortization of prior service credit, and settlement expense totaling $ 0.4 million and $ 0.7 million in 2023 and 2022, respectively. There was no settlement expense in 2021. (b) Reclassified from AOCI into Income tax expense (benefit). (c) Reclassified from AOCI into Interest expense. |
Income Tax
Income Tax | 12 Months Ended |
Dec. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Note 13 – Income Tax The income tax provision for continuing operations is made up of the following components: (In thousands) 2023 2022 2021 Current income tax expense: Federal $ 6,698 $ 8,585 $ 5,436 State 2,961 2,397 1,867 Total current income tax expense 9,659 10,982 7,303 Deferred income tax expense: Federal 6,546 46 14,877 State 1,683 1,369 2,726 Total deferred income tax expense 8,229 1,415 17,603 Total income tax expense $ 17,888 $ 12,397 $ 24,906 A reconciliation of the statutory federal rate to the effective rate is as follows: 2023 2022 2021 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % Stock compensation ( 0.9 ) ( 2.8 ) 0.0 Non-deductible expenses 3.4 5.5 1.7 Change in tax contingencies ( 1.3 ) ( 0.1 ) 0.0 Charitable product donations ( 0.2 ) ( 0.3 ) ( 0.1 ) Other, net ( 0.3 ) 0.1 ( 0.3 ) State taxes, net of federal income tax benefit 5.3 6.7 3.8 Tax credits ( 1.5 ) ( 3.7 ) ( 0.9 ) Effective income tax rate 25.5 % 26.4 % 25.2 % Deferred tax assets and liabilities resulting from temporary differences as of December 30, 2023 and December 31, 2022 are as follows: December 30, December 31, (In thousands) 2023 2022 Deferred tax assets: Employee benefits $ 21,074 $ 27,387 Accrued workers' compensation 2,082 2,126 Allowance for credit losses 1,500 1,823 Restructuring 601 655 Deferred revenue 987 1,266 Stock warrant 31 626 Lease liabilities 82,970 82,284 Accrued insurance 1,045 985 State net operating loss carryforwards (a) 5,507 5,608 All other 8,538 4,433 Total deferred tax assets 124,335 127,193 Valuation allowances ( 399 ) ( 357 ) Net deferred tax assets 123,936 126,836 Deferred tax liabilities: Property and equipment 49,038 48,251 Lease assets 74,472 73,986 Inventory 31,618 33,290 Goodwill 36,936 33,606 Intangible assets 2,200 1,195 All other 3,576 2,801 Total deferred tax liabilities 197,840 193,129 Net deferred tax liability $ 73,904 $ 66,293 (a) As of December 30, 2023, the Company’s state net operating loss carryforwards in various taxing jurisdictions expire in tax years 2024 through 2043 if not utilized . A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: (In thousands) 2023 2022 Balance at beginning of year $ 1,165 $ 1,220 Lapsed statutes of limitations ( 185 ) ( 55 ) Effectively settled ( 836 ) — Balance at end of year $ 144 $ 1,165 Unrecognized tax benefits of $ 0.1 million are set to expire prior to December 28, 2024. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense. The amount of unrecognized tax benefits, including interest and penalties, that would reduce the Company’s effective income tax rate if recognized in future periods was $ 0.1 million as of December 30, 2023. SpartanNash or its subsidiaries file income tax returns with federal, state and local tax authorities within the United States. With few exceptions, SpartanNash is no longer subject to examinations by U.S. federal tax authorities for fiscal years before the year ended January 2, 2021, and state or local tax authorities for fiscal years before the year ended December 28, 2019. |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Dec. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Payments | Note 14 – Share-Based Payments Stock-Based Employee Awards The Company sponsors a shareholder-approved stock incentive plan (the “2020 Plan”) that provides for the granting of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance share units, dividend equivalent rights, and other stock-based and stock-related awards to directors, employees, or contractors of the Company, as determined by the Compensation Committee of the Board of Directors. Holders of restricted stock and stock awards issued under the 2020 Plan are entitled to participate in dividends, payable upon the vesting of the underlying awards. As of December 30, 2023 , a total of 470,810 shares remained unissued under the 2020 Plan. In the event of a "Change in Control, as defined by the Plan, all outstanding unvested shares of restricted stock vest immediately, while outstanding unvested shares of performance share units vest immediately on a pro-rata basis. Restricted Stock Restricted stock awarded to Associates in 2023, 2022 and 2021 vest ratably over a three-year service period and over one year for grants to members of the Board of Directors. Restricted stock awarded to Associates prior to 20 21 vest ratably over a four-year service period. Awards are subject to forfeiture and certain transfer restrictions prior to vesting. Compensation expense, representing the fair value of the stock at the measurement date of the award, is recognized over the required service period. The following table summarizes restricted stock activity for 2023, 2022 and 2021: Restricted Weighted Average Stock Grant-Date Awards Fair Value Outstanding and nonvested at January 2, 2021 973,948 $ 17.72 Granted 562,653 18.96 Vested ( 388,403 ) 19.81 Forfeited ( 116,361 ) 18.19 Outstanding and nonvested at January 1, 2022 1,031,837 17.56 Granted 391,334 28.63 Vested ( 470,145 ) 17.92 Forfeited ( 89,963 ) 20.71 Outstanding and nonvested at December 31, 2022 863,063 22.05 Granted 447,910 26.95 Vested ( 432,549 ) 21.16 Forfeited ( 58,967 ) 25.96 Outstanding and nonvested at December 30, 2023 819,457 $ 24.92 The total intrinsic value of shares vested was $ 11.7 million, $ 14.3 million and $ 7.3 million in 2023, 2022 and 2021, respectively. As of December 30, 2023 , total unrecognized compensation cost related to nonvested restricted stock awards granted under the Company's stock incentive plans is $ 9.0 million and is expected to be recognized over a weighted average period of 1.7 years. Performance Share Units Performance share units were awarded to certain officers and key Associates in 2023. The vesting of these awards is contingent upon meeting certain performance metrics over a three year period, which include adjusted EPS and return on invested capital. The quantity of shares awarded ranges from 0 % to 200 % of “Target,” as defined in the award agreement, based on the achievement against the performance metrics. Stock-based compensation expense is recorded over the performance period and is reevaluated at each reporting date based on the probability of the achievement of the performance metrics. The fair value of performance shares is based on the Company’s stock price on the date of grant. Performance share unit awards have a three-year cliff vest, subject to achievement of the performance metrics. Awards are subject to forfeiture and certain transfer restrictions prior to vesting. The following table summarizes performance share unit activity for 2023: Performance Weighted Average Share Unit Grant-Date Awards Fair Value Outstanding and nonvested at December 31, 2022 — $ — Granted 299,840 27.01 Forfeited ( 9,530 ) 27.24 Outstanding and nonvested at December 30, 2023 290,310 $ 27.00 As of December 30, 2023 , total unrecognized compensation cost related to nonvested performance share unit awards granted under the Company's stock incentive plans is $ 5.8 million and is expected to be recognized over a weighted average period of 2.0 years. Stock-Based Compensation Expense Stock -based compensation expense recognized and included in “Selling, general and administrative expenses” in the consolidated statements of earnings, and related tax benefits were as follows: (In thousands) 2023 2022 2021 Restricted stock expense $ 10,220 $ 8,308 $ 6,868 Performance share unit expense 2,048 — — Income tax benefit ( 4,199 ) ( 4,094 ) ( 1,744 ) Stock-based compensation expense, net of tax $ 8,069 $ 4,214 $ 5,124 Stock-based compensation expense is recognized net of estimated forfeitures, determined based on historical experience. The Company recognized tax deductions of $ 12.2 million, $ 14.7 million and $ 7.7 million related to the vesting of restricted stock and performance share units in 2023, 2022 and 2021, respectively. The Company sponsored a stock bonus plan covering 300,000 shares of SpartanNash common stock. Under the provisions of this plan, certain officers and key Associates could elect to receive a portion of their annual bonus in common stock rather than cash, which was issued at 120 % of cash value. After the shares are issued, the holder is not able to sell or otherwise transfer the shares until the end of the holding period, which is 24 months. Compensation expense is recorded based upon the market price of the stock as of the measurement date. Under the plan, 15,778 shares were issued in 2021. The stock bonus plan expired on March 31, 2021. The Company also sponsors an associate stock purchase plan covering 300,000 shares of SpartanNash common stock and enables eligible Associates of the Company to purchase shares at 85 % of the fair market value. The Company has determined this represents compensation expense in accordance with ASC 718, Compensation – Stock Compensation . As of December 30, 2023, 62,540 shares have been issued under the Plan. Stock Warrant On October 7, 2020, in connection with its entry into a commercial agreement with Amazon.com, Inc. (“Amazon”), the Company issued to Amazon.com NV Investment Holdings LLC, a subsidiary of Amazon, a warrant to acquire up to an aggregate of 5,437,272 shares of the Company’s common stock (the “Warrant”), subject to certain vesting conditions. Warrant shares totaling 1,087,455 shares vested upon the signing of the commercial agreement and had a grant date fair value of $ 5.51 per share. Warrant shares totaling up to 4,349,817 shares may vest in connection with conditions defined by the terms of the Warrant, as Amazon makes payments to the Company in connection with the commercial supply agreement, in increments of $ 200 million, and had a grant date fair value of $ 5.33 per share. Upon vesting, shares may be acquired at an exercise price of $ 17.7257 . The Warrant contains customary anti-dilution, down-round and change-in-control provisions. The right to purchase shares in connection with the Warrant expires on October 7, 2027 . Non-cash share-based payment expense associated with the Warrant is recognized as vesting conditions are achieved, based on the grant date fair value of the Warrant. The following table summarizes the Warrant activity for 2023, 2022 and 2021: Warrant Outstanding and nonvested at January 2, 2021 4,349,817 Vested ( 434,984 ) Outstanding and nonvested at January 1, 2022 3,914,833 Vested ( 434,984 ) Outstanding and nonvested at December 31, 2022 3,479,849 Vested ( 217,492 ) Outstanding and nonvested at December 30, 2023 3,262,357 Warrant expense recognized as a reduction of “Net sales” in the consolidated statements of earnings, and related tax benefits were as follows: (In thousands) 2023 2022 2021 Warrant expense $ 1,559 $ 2,158 $ 1,958 Tax benefits ( 133 ) ( 203 ) ( 152 ) Warrant expense, net of tax $ 1,426 $ 1,955 $ 1,806 As of December 30, 2023 , total unrecognized cost related to non-vested warrants was $ 17.0 million, which may be expensed as vesting conditions are satisfied over the remaining term of the agreement, or 3.8 years. Warrants representing 2,174,915 shares are vested and exercisable. As of December 30, 2023 , non-vested warrant shares had an intrinsic value of $ 17.0 million, and vested warrant shares had an intrinsic value of $ 11.4 million. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 30, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Note 15 – Supplemental Cash Flow Information Supplemental cash flow information is as follows: (In thousands) 2023 2022 2021 Non-cash investing activities: Capital expenditures included in accounts payable $ 28,102 $ 25,701 $ 15,277 Other supplemental cash flow information: Cash paid for interest 37,939 18,431 12,245 Income tax payments (refunds) 11,172 6,513 ( 10,110 ) |
Reporting Segment Information
Reporting Segment Information | 12 Months Ended |
Dec. 30, 2023 | |
Segment Reporting [Abstract] | |
Reporting Segment Information | Note 16 – Reportable Segment Information SpartanNash sells and distributes products that are typically found in supermarkets and discount stores. The Company’s operating segments reflect the manner in which the business is managed and how the Company allocates resources and assesses performance internally. The C ompany’s Chief Operating Decision Maker is the Chief Executive Officer, who determines the allocation of resources and, through a regular review of financial information, assesses the performance of the operating segments. The business is classified by management into two reportable segments: Wholesale and Retail. These reportable segments are two distinct businesses, each with a different customer base, management structure, and basis for determining budgets, forecasts, and compensation. Where applicable, s egment financial information for the comparative prior year periods within this report has been recast to reflect the Company's current reportable segment structure. The Company reviews its reportable segments on an annual basis, or more frequently if events or circumstances indicate a change in reportable segments has occurred. Refer to Note 2 for information regarding the basis of organization and types of products, services and customers from which the Company derives revenue. The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1. Identifiable assets represent total assets directly associated with the reportable segments. Eliminations in assets identified to segments include intercompany receivables, payables and investments. Capital expenditures primarily relate to store remodels, IT upgrades and implementations, investments in supply chain infrastructure, office remodels, and equipment upgrades. The following tables set forth information about the Company by reportable segment: (In thousands) Wholesale Retail Total 2023 Net sales to external customers $ 6,919,217 $ 2,810,002 $ 9,729,219 Inter-segment sales 1,189,438 1,332 1,190,770 Acquisition and integration, net 216 3,200 3,416 Restructuring and asset impairment, net 8,548 642 9,190 Depreciation and amortization 51,535 47,104 98,639 Operating earnings 87,701 19,011 106,712 Capital expenditures 75,509 44,821 120,330 2022 Net sales to external customers $ 6,845,236 $ 2,797,864 $ 9,643,100 Inter-segment sales 1,204,497 928 1,205,425 Acquisition and integration, net 239 104 343 Restructuring and asset impairment, net ( 2,363 ) 3,168 805 Depreciation and amortization 47,601 46,579 94,180 Operating earnings 55,137 13,407 68,544 Capital expenditures 52,394 44,886 97,280 2021 Net sales to external customers $ 6,349,753 $ 2,581,286 $ 8,931,039 Inter-segment sales 1,095,647 827 1,096,474 Acquisition and integration, net — 708 708 Restructuring and asset impairment, net 427 2,459 2,886 Depreciation and amortization 46,487 46,224 92,711 Operating earnings 45,229 66,971 112,200 Capital expenditures 46,020 33,407 79,427 December 30, December 31, (In thousands) 2023 2022 Total assets Wholesale $ 1,576,182 $ 1,525,760 Retail 779,393 780,801 Total $ 2,355,575 $ 2,306,561 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 30, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation: The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of SpartanNash Company and its subsidiaries (“SpartanNash” or “the Company”). Intercompany accounts and transactions have been eliminated. |
Fiscal Year | Fiscal Year: The Company’s fiscal year end is the Saturday nearest to December 31. The following discussion is as of and for the fiscal years ended December 30, 2023 ("2023" or “current year”), December 31, 2022 (“2022” or “prior year”) and January 1, 2022 (“2021 ”), all of which include 52 weeks. All fiscal quarters are 12 weeks, except for the Company’s first quarter, which is 16 weeks. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported therein. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods might differ from those estimates. |
Revenue Recognition | Revenue Recognition: The Company recognizes revenue when it satisfies a performance obligation by transferring control of the promised goods and services to a customer, in an amount that reflects the consideration that it expects to receive in exchange for those goods or services. This is achieved through applying the following five-step model: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the Company satisfies a performance obligation The Company generates substantially all of its revenue from contracts with customers, whether formal or implied. Sales taxes collected from customers are remitted to the appropriate taxing jurisdictions and are excluded from sales revenue as the Company considers itself a pass-through conduit for collecting and remitting sales taxes, with the exception of taxes assessed during the procurement process of select inventories. Greater than 99 % of the Company’s revenues are recognized at a point in time. Revenues from product sales are recognized when control of the goods is transferred to the customer, which occurs at a point in time, typically upon delivery or shipment to the customer, depending on shipping terms, or upon customer check-out in a corporate-owned retail store. Freight revenues are also recognized upon delivery, at a point in time. Other revenues, including revenues from value-added services and leases, are recognized as earned, over a period of time. All of the Company’s revenues are domestic, as the Company has no performance obligations on international shipments subsequent to delivery to the domestic port. The Company evaluates whether it is a principal (i.e., reports revenues on a gross basis) or an agent (i.e., reports revenues on a net basis) with respect to each contract with customers. Based upon the nature of the products the Company sells, its customers have limited rights of return, which are immaterial. Discounts provided by the Company to customers at the time of sale are recognized as a reduction in sales as the products are sold. Certain contracts include rebates and other forms of variable consideration, including up-front rebates, rebates in arrears, rebatable incentives, non-cash incentives including stock warrants, and product incentives, which may have tiered structures based on purchase volumes and which are accounted for as variable consideration. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. |
Cost of Sales | Cost of Sales: Cost of sales represents the cost of inventory sold during the period, which includes purchase costs, in-bound freight, physical inventory adjustments, markdowns and promotional allowances and excludes warehousing costs, depreciation and other administrative expenses. The Company’s cost of sales and gross profit may not be identical to similarly titled measures reported by other companies. Vendor allowances and credits that relate to the Company’s buying and merchandising activities consist primarily of promotional allowances, which are allowances on purchased quantities and, to a lesser extent, slotting allowances, which are billed to vendors for the Company’s merchandising costs such as setting up warehouse infrastructure. Vendor allowances are recognized as a reduction in cost of sales when the related product is sold. Lump sum payments received for multi-year contracts are amortized over the life of the contracts based on contractual terms. The Wholesale segment includes shipping and handling costs in the selling, general and administrative section of operating expenses within the consolidated statements of earnings. |
Cash and Cash Equivalents | Cash and Cash Equivalents: Cash and cash equivalents consists of cash and highly liquid investments with an original maturity of three months or less at the date of purchase. |
Accounts and Notes Receivable | Accounts and Notes Receivable: Accounts and notes receivable are presented net of allowances for credit losses of $ 5.8 million and $ 7.0 million as of December 30, 2023 and December 31, 2022, respectively. The Company estimates losses using an expected loss model, considering both historical data and future expectations, including collection experience, expectations for current credit risks, accounts receivable payment status, the customer’s financial health, as well as the Company’s collateral and creditor position. The Company pools similar assets based on their credit risk characteristics, whereby many of its trade receivables are pooled based on certain customer or aging characteristics. After assets are pooled, an appropriate loss factor is applied based on management’s expectations. The Company also records specific reserves for credit losses in certain circumstances using a similar estimated loss model. Operating results include net bad debt (income) expense of $( 0.4 ) million, $ 3.3 million and $( 0.3 ) million for 2023, 2022 and 2021, respectively. Accounts and notes receivable are composed of the following: December 30, December 31, (In thousands) 2023 2022 Current notes receivable $ 2,613 $ 1,622 Customer accounts receivable 379,208 375,550 Other receivables 44,649 32,942 Allowance for credit losses ( 4,611 ) ( 6,098 ) Net accounts and current notes receivable $ 421,859 $ 404,016 Long-term notes receivable $ 7,369 $ 8,573 Allowance for credit losses ( 1,212 ) ( 948 ) Net long-term notes receivable $ 6,157 $ 7,625 |
Inventory Valuation | Inventory Valuation: Inventories are valued at the lower of cost or net realizable value. Approximately 90.4 % and 87.5 % of the Company’s inventories were valued on the last-in, first-out (LIFO) method at December 30, 2023 and December 31, 2022 , respectively. If replacement cost had been used, inventories would have been $ 154.7 million and $ 138.6 million higher at December 30, 2023 and December 31, 2022, respectively. The replacement cost method utilizes the most current unit purchase cost to calculate the value of inventories. During 2023, 2022 and 2021 , certain inventory quantities were reduced which resulted in the liquidation of LIFO inventory carried at lower costs prevailing in prior years, the effect of which decreased the LIFO provision by $ 4.0 million, $ 2.1 million and $ 2.1 million in 2023, 2022 and 2021 , respectively. The Company accounts for its Wholesale segment inventory using a perpetual system and utilizes the retail inventory method (“RIM”) to value inventory for center store products in the Retail segment. Under RIM, inventory is stated at cost, determined by applying a cost ratio to the retail value of inventories. Fresh, pharmacy and fuel products are accounted for at cost in the Retail segment. The Company estimates allowances for inventory shortages based on the results of recent physical counts. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets: Goodwill represents the excess purchase price over the fair value of tangible net assets acquired in business combinations after amounts have been allocated to intangible assets. Goodwill is not amortized, but is reviewed for impairment during the last quarter of each year, or whenever events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount, using a discounted cash flow model and comparable market values of each reportable segment. Measuring the fair value of reporting units is a Level 3 measurement under the fair value hierarchy. See Note 7, for a discussion of fair value levels. Intangible assets primarily consist of trade names, customer relationships, pharmacy prescription lists, non-compete agreements, liquor licenses and franchise fees. The following assets are amortized on a straight-line basis over the period of time in which their expected benefits will be realized: customer relationships and prescription lists (period of expected benefit reflecting the pattern in which the economic benefits are consumed), non-compete agreements and franchise fees (length of agreements). Indefinite-lived trade names and liquor licenses are not amortized but are tested at least annually for impairment. |
Property and Equipment | Property and Equipment: Property and equipment are recorded at cost. Expenditures which improve or extend the life of the respective assets are capitalized, whereas expenditures for normal repairs and maintenance are charged to operations as incurred. Depreciation expense on land improvements, buildings and improvements, and equipment is computed using the straight-line method as follows: Land improvements 15 years Buildings and improvements 15 to 40 years Equipment 3 to 15 years Property under finance leases and leasehold improvements are amortized on a straight-line basis over the shorter of the remaining terms of the leases or the estimated useful lives of the assets. Internal use software is included in Property and equipment, net and totaled $ 45.9 million and $ 47.3 million as of December 30, 2023 and December 31, 2022 , respectively. |
Cloud Computing Arrangements | Cloud Computing Arrangements: Implementation costs for software that is accessed in hosted cloud computing arrangements is accounted for in accordance with Accounting Standards Codification (“ASC”) 350, Intangibles-Goodwill and Other . Capitalized development costs of hosted cloud computing arrangements include configuration, installation, licenses, other upfront costs and internal labor costs of employees devoted to the cloud computing software implementation project. Once a project is complete, amortization is computed using the straight-line method over the term of the associated hosting arrangement, including any options to extend the hosting arrangement that the Company is reasonably certain to exercise, generally 3 to 8 years . These costs are classified in the consolidated balance sheets in “Prepaid expenses and other current assets” or “Other assets, net” based on the term of the arrangement, and the related cash flows are presented as cash outflows from operations. The net book value of these implementation costs was $ 24.3 million and $ 21.3 million, as of December 30, 2023 and December 31, 2022 , respectively. |
Leases | Leases: At the commencement or modification of a contract, the Company determines whether a lease exists based on 1) the identification of an underlying asset and 2) the right to control the use of the identified asset. When the Company is a lessee, leases are classified as either operating or finance. Operating and finance lease assets represent the Company’s right to use an underlying asset for the lease term, while lease obligations represent the Company’s obligation to make lease payments arising from the lease. Most of the Company’s lease agreements include variable payments related to executory costs for property taxes, utilities, insurance, maintenance and other occupancy costs related to the leased asset. Additionally, certain of the Company’s lease agreements include rental payments based on a percentage of retail sales over contractual levels or, in the case of transportation equipment, provisions requiring payment of variable rent based upon miles driven. These variable payments are not included in the measurement of the lease liability or asset and are expensed as incurred. Leases with an initial expected term of 12 months or less are not recorded in the consolidated balance sheets and the related lease expense is recognized on a straight-line basis over the lease term. Lease assets and obligations are recognized at the lease commencement date based on the present value of lease payments and initial direct costs incurred, less incentives, over the lease term. In the absence of stated or implicit interest rates within lease contracts, incremental borrowing rates are estimated based on the Company’s borrowing rate as of the lease commencement date to determine the present value of lease payments. Incremental borrowing rates are determined by using the yield curve based on the Company’s creditworthiness on a collateralized basis. The Company includes option periods in the assumed lease term when it is reasonably certain that the options will be exercised. Operating lease assets and liabilities are reported discretely in the consolidated balance sheets. Finance lease assets are included in Property and equipment, net and finance lease liabilities are included in Long-term debt and finance lease liabilities within the Company’s consolidated balance sheets. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets: The Company reviews and evaluates long-lived assets for impairment when events or circumstances indicate that the carrying amount of an asset may not be recoverable. When the undiscounted expected future cash flows are not sufficient to recover an asset’s carrying amount, the fair value is compared to the carrying value to determine the impairment loss to be recorded. Long-lived assets to be sold or disposed of are reported at the lower of carrying amount or fair value, less the cost to sell. Fair values are determined by independent appraisals or expected sales prices based upon market participant data developed by third party professionals or by internal licensed real estate professionals. Estimates of future cash flows and expected sales prices are judgments based upon the Company’s experience and knowledge of operations. These estimates project cash flows several years into the future and are affected by changes in the Company's performance, economy, real estate market conditions and inflation. The Company evaluates definite-lived intangible asset and operating and finance lease asset impairments in conjunction with testing of the related asset groups as described above. Impairment reserves are applied proportionally as a reduction to the assets in the asset group, including lease assets. |
Reserves for Closed Properties | Reserves for Closed Properties: The Company records reserves for closed properties that are subject to long-term lease commitments based upon the lease ancillary costs from the date of closure to the end of the remaining lease term. Future cash flows are based on historical expenses, contractual lease terms and knowledge of the geographic area in which the closed site is located. These estimates are subject to multiple factors, including inflation, ability to sublease the property and other economic conditions. The reserved expenses are paid over the remaining lease terms, which range from 1 to 5 years . Subsequent adjustments to closed property reserves are made when actual exit costs differ from the original estimates. These adjustments are made for changes in estimates in the period in which the changes become known. The current portion of the future closed property obligations is included in “Other accrued expenses,” and the long-term portion is included in “Other long-term liabilities” in the consolidated balance sheets. |
Debt Issuance Costs | Debt Issuance Costs : Debt issuance costs are amortized over the term of the related financing agreement and are included as a direct deduction from the carrying amount of the related debt liability in “Long-term debt and finance lease liabilities” in the consolidated balance sheets. |
Insurance Reserves | Insurance Reserves: SpartanNash is insured through self-insurance retentions or high deductible programs for workers’ compensation, general liability, and automobile liability, and is also self-insured for healthcare costs. Self-insurance liabilities are recorded based on claims filed and an estimate of claims incurred but not yet reported. Workers’ compensation, general liability and automobile liabilities are actuarially estimated based on available historical information on an undiscounted basis. The Company has purchased stop-loss coverage to limit its exposure to any significant exposure on a per claim basis for its self-insurance retentions and high deductible programs. On a per claim b asis, the Company’s exposure is up to $ 0.5 million for workers’ compensation and general liability and $ 2.0 million for automobile liability. For healthcare, the Company’s exposure is up to $ 0.6 million in annual claims for each covered individual. A summary of changes in the Company’s self-insurance liability is as follows: (In thousands) 2023 2022 2021 Balance at beginning of year $ 18,157 $ 19,445 $ 16,737 Expenses 63,722 64,386 72,101 Claim payments, net of employee contributions ( 63,700 ) ( 65,674 ) ( 69,393 ) Balance at end of year $ 18,179 $ 18,157 $ 19,445 The current portion of the self-insurance liability was $ 10.9 million and $ 10.2 million as of December 30, 2023 and December 31, 2022, respectively, and is included in “Other accrued expenses” in the consolidated balance sheets. The long-term portion was $ 7.3 million and $ 7.9 million as of December 30, 2023 and December 31, 2022 , respectively, and is included in “Other long-term liabilities” in the consolidated balance sheets. |
Income Taxes | Income Taxes: Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future. Such deferred income tax asset and liability computations are based on enacted tax laws and rates applicable to periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred and other tax assets and liabilities. |
Earnings per share | Earnings per share: Earnings per share (“EPS”) is computed using the two-class method. The two-class method determines EPS for each class of common stock and participating securities according to dividends and their respective participation rights in undistributed earnings. Outstanding nonvested restricted stock incentive awards under the Company’s 2015 Plan contain nonforfeitable rights to dividends or dividend equivalents, which participate in undistributed earnings with common stock. These awards are classified as participating securities and are included in the calculation of basic earnings per share. Awards under the 2020 Plan do not contain nonforfeitable rights to dividends or dividend equivalents and are therefore not classified as participating securities. The dilutive impact of both the restricted stock awards and warrants are presented below, as applicable. Weighted average restricted stock awards that were not included in the diluted EPS calculations because they were anti-dilutive were 19,765 , 2,882 , and 13,614 for 2023, 2022, and 2021 respectively. Performance share unit awards are not included within the calculation of diluted EPS as the performance criteria has not been met as of the year ended December 30, 2023. The following table sets forth the computation of basic and diluted EPS: (In thousands, except per share amounts) 2023 2022 2021 Numerator: Net earnings $ 52,237 $ 34,518 $ 73,751 Adjustment for earnings attributable to participating securities ( 408 ) ( 404 ) ( 1,399 ) Net earnings used in calculating earnings per share $ 51,829 $ 34,114 $ 72,352 Denominator: Weighted average shares outstanding, including participating securities 34,211 35,279 35,639 Adjustment for participating securities ( 267 ) ( 413 ) ( 676 ) Shares used in calculating basic earnings per share 33,944 34,866 34,963 Effect of dilutive stock warrant 584 847 225 Effect of dilutive restricted stock awards 106 187 79 Shares used in calculating diluted earnings per share 34,634 35,900 35,267 Basic earnings per share $ 1.53 $ 0.98 $ 2.07 Diluted earnings per share $ 1.50 $ 0.95 $ 2.05 |
Stock-Based Employee Compensation | Stock-Based Employee Compensation: All share-based payments to Associates are generally recognized in the consolidated financial statements as compensation cost based on the fair value on the date of grant. The grant date closing price per share of SpartanNash stock is used to estimate the fair value of restricted stock awards and performance stock units. The value of the portion of awards expected to vest is recognized as expense over the requisite service period. Performance stock units require the Company to estimate expected achievement of performance targets over the performance period. This estimate involves judgment regarding future expectations of various financial performance measures. If there are changes in the Company's estimates of the level of financial performance measures expected to be achieved, the related stock-based compensation expense may be significantly increased or reduced in the period that the estimate changes. |
Stock Warrants | Stock Warrants: Stock warrants are accounted for as equity instruments and measured in accordance with ASC 718, Compensation – Stock Compensation. For awards granted to a customer which are not in exchange for distinct goods or services, the fair value of the awards earned based on service or performance conditions is recorded as a reduction of the transaction price, in accordance with ASC 606, Revenue from Contracts with Customers . To determine the fair value of the warrants in accordance with ASC 718, the Company uses pricing models based in part on assumptions for which management is required to use judgment. Based on the fair value of the awards, the Company determines the amount of warrant expense based on the customer’s achievement of vesting conditions, which is recorded as a reduction of net sales on the consolidated statement of earnings. The dilutive impact of stock warrants is determined using the treasury stock method. |
Shareholders' Equity | Shareholders’ Equity: The Company’s restated articles of incorporation provide that the Board of Directors may at any time, and from time to time, provide for the issuance of up to 10 million shares of preferred stock in one or more series, each with such designations as determined by the Board of Directors. At December 30, 2023 and December 31, 2022 , there were no shares of preferred stock outstanding. |
Advertising Costs | Advertising Costs: The Company’s advertising costs are expensed as incurred and are included in Selling, general and administrative expenses. Advertising expenses were $ 33.7 million, $ 37.6 million and $ 37.7 million in 2023, 2022 and 2021 , respectively. |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive (Loss) Income (“AOCI”): The Company reports comprehensive income, which includes net earnings and other comprehensive (loss) income. Other comprehensive (loss) income refers to expenses, gains and losses that are not included in net earnings, such as postretirement liability adjustments and changes in the fair value of interest rate swaps, but rather are recorded directly to shareholders’ equity. These amounts are also presented in the consolidated statements of comprehensive income. |
Interest Rate Swaps | Interest Rate Swaps: The Company utilizes an interest rate swap contract to reduce its exposure to fluctuations in variable interest rates applicable to its credit facility. The Company values the interest rate swap using standard models and observable market inputs including SOFR interest rates and discount rates. The Company has designated its interest rate swap as a cash flow hedge. The change in the fair value of the interest rate swap is initially reported in "Other comprehensive (loss) income" in the consolidated statements of comprehensive income and subsequently reclassified to earnings in "Interest expense, net" in the consolidated statements of earnings when the hedged transactions affect earnings. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards: As of December 30, 2023 and for the year then ended, there were no recently adopted accounting standards that had a material impact on the Company's consolidated financial statements. There were no recently issued accounting standards not yet adopted which would have a material effect on the Company's consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Accounting Policies [Abstract] | |
Property and Equipment Estimated Useful Lives | Depreciation expense on land improvements, buildings and improvements, and equipment is computed using the straight-line method as follows: Land improvements 15 years Buildings and improvements 15 to 40 years Equipment 3 to 15 years |
Summary of Changes in the Company's Self-Insurance Liability | A summary of changes in the Company’s self-insurance liability is as follows: (In thousands) 2023 2022 2021 Balance at beginning of year $ 18,157 $ 19,445 $ 16,737 Expenses 63,722 64,386 72,101 Claim payments, net of employee contributions ( 63,700 ) ( 65,674 ) ( 69,393 ) Balance at end of year $ 18,179 $ 18,157 $ 19,445 |
Schedule of Computation of Basic and Diluted EPS for Continuing Operations | The following table sets forth the computation of basic and diluted EPS: (In thousands, except per share amounts) 2023 2022 2021 Numerator: Net earnings $ 52,237 $ 34,518 $ 73,751 Adjustment for earnings attributable to participating securities ( 408 ) ( 404 ) ( 1,399 ) Net earnings used in calculating earnings per share $ 51,829 $ 34,114 $ 72,352 Denominator: Weighted average shares outstanding, including participating securities 34,211 35,279 35,639 Adjustment for participating securities ( 267 ) ( 413 ) ( 676 ) Shares used in calculating basic earnings per share 33,944 34,866 34,963 Effect of dilutive stock warrant 584 847 225 Effect of dilutive restricted stock awards 106 187 79 Shares used in calculating diluted earnings per share 34,634 35,900 35,267 Basic earnings per share $ 1.53 $ 0.98 $ 2.07 Diluted earnings per share $ 1.50 $ 0.95 $ 2.05 |
Summary of Accounts and Notes Receivable | Accounts and notes receivable are composed of the following: December 30, December 31, (In thousands) 2023 2022 Current notes receivable $ 2,613 $ 1,622 Customer accounts receivable 379,208 375,550 Other receivables 44,649 32,942 Allowance for credit losses ( 4,611 ) ( 6,098 ) Net accounts and current notes receivable $ 421,859 $ 404,016 Long-term notes receivable $ 7,369 $ 8,573 Allowance for credit losses ( 1,212 ) ( 948 ) Net long-term notes receivable $ 6,157 $ 7,625 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Information about Disaggregated Revenue of Reportable Segments | The following table provides information about disaggregated revenue by type of products and customers for each of the Company’s reportable segments: 2023 (In thousands) Wholesale Retail Total Type of products: Center store (a) $ 2,678,297 $ 1,081,840 $ 3,760,137 Fresh (b) 2,153,564 1,048,759 3,202,323 Non-food (c) 1,985,816 512,679 2,498,495 Fuel — 165,684 165,684 Other 101,540 1,040 102,580 Total $ 6,919,217 $ 2,810,002 $ 9,729,219 Type of customers: Individuals $ — $ 2,808,962 $ 2,808,962 Independent retailers (d) 2,377,036 — 2,377,036 National accounts 2,218,003 — 2,218,003 Military (e) 2,277,966 — 2,277,966 Other 46,212 1,040 47,252 Total $ 6,919,217 $ 2,810,002 $ 9,729,219 2022 (In thousands) Wholesale Retail Total Type of products: Center store (a) $ 2,671,666 $ 1,073,765 $ 3,745,431 Fresh (b) 2,171,906 1,068,240 3,240,146 Non-food (c) 1,888,318 452,557 2,340,875 Fuel — 202,256 202,256 Other 113,346 1,046 114,392 Total $ 6,845,236 $ 2,797,864 $ 9,643,100 Type of customers: Individuals $ — $ 2,796,858 $ 2,796,858 Independent retailers (d) 2,363,597 — 2,363,597 National accounts 2,311,114 — 2,311,114 Military (e) 2,115,353 — 2,115,353 Other 55,172 1,006 56,178 Total $ 6,845,236 $ 2,797,864 $ 9,643,100 2021 (In thousands) Wholesale Retail Total Type of products: Center store (a) $ 2,419,163 $ 1,001,920 $ 3,421,083 Fresh (b) 2,027,020 992,897 3,019,917 Non-food (c) 1,783,229 427,872 2,211,101 Fuel — 157,236 157,236 Other 120,341 1,361 121,702 Total $ 6,349,753 $ 2,581,286 $ 8,931,039 Type of customers: Individuals $ — $ 2,580,277 $ 2,580,277 Independent retailers (d) 2,197,892 — 2,197,892 National accounts 2,211,458 — 2,211,458 Military (e) 1,882,602 — 1,882,602 Other 57,801 1,009 58,810 Total $ 6,349,753 $ 2,581,286 $ 8,931,039 (a) Center store includes dry grocery, frozen and beverages. (b) Fresh includes produce, meat, dairy, deli, bakery, prepared proteins, seafood and floral. (c) Non-food includes general merchandise, health and beauty care, tobacco products and pharmacy. (d) Independent retailers include sales to manufacturers, brokers and distributors. (e) Military represents the distribution of grocery products to U.S. military commissaries and exchanges, which primarily includes sales to manufacturers and brokers. |
Summary of Changes in Allowance for Credit Losses | Changes to the balance of the allowance for credit losses were as follows: Allowance for Credit Losses Current Accounts Long-term (In thousands) and Notes Notes Total Balance at January 2, 2021 $ 6,232 $ 371 $ 6,603 Changes in credit loss estimates ( 1,101 ) 360 ( 741 ) Write-offs charged against the allowance ( 717 ) — ( 717 ) Balance at January 1, 2022 4,414 731 5,145 Changes in credit loss estimates 2,539 217 2,756 Write-offs charged against the allowance ( 855 ) — ( 855 ) Balance at December 31, 2022 6,098 948 7,046 Changes in credit loss estimates ( 929 ) 264 ( 665 ) Write-offs charged against the allowance ( 558 ) — ( 558 ) Balance at December 30, 2023 $ 4,611 $ 1,212 $ 5,823 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consist of the following: December 30, December 31, (In thousands) 2023 2022 Land and improvements $ 91,031 $ 91,859 Buildings and improvements 646,707 612,471 Equipment 799,721 724,077 Construction in progress 59,295 53,443 Total property and equipment 1,596,754 1,481,850 Less accumulated depreciation and amortization 947,683 871,630 Property and equipment, net $ 649,071 $ 610,220 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Wholesale and Retail Changes in the carrying amount of goodwill | The Company has two reporting units, Wholesale and Retail. Changes in the carrying amount of goodwill were as follows: (In thousands) Wholesale Retail Total Balance at January 1, 2022 $ 181,035 $ — $ 181,035 Acquisitions — 1,125 1,125 Balance at December 31, 2022 and December 30, 2023 $ 181,035 $ 1,125 $ 182,160 |
Schedule of Components of Amortized Intangible Assets, Includes in Intangible Assets, Net | The following table reflects the components of amortized intangible assets, included in “Intangible assets, net” on the consolidated balance sheets: December 30, 2023 December 31, 2022 Gross Gross Carrying Accumulated Carrying Accumulated (In thousands) Amount Amortization Amount Amortization Non-compete agreements $ 3,545 $ 3,190 $ 3,545 $ 2,621 Pharmacy customer prescription lists 3,869 2,853 4,168 2,598 Customer relationships 57,937 26,146 57,937 22,484 Franchise fees 1,209 661 1,165 598 Total $ 66,560 $ 32,850 $ 66,815 $ 28,301 |
Summary of Weighted Average Amortization Periods for Amortizable Intangible Assets | The weighted average amortization periods for amortizable intangible assets as of December 30, 2023 are as follows: Non-compete agreements 6.4 years Pharmacy customer prescription lists 8.1 years Customer relationships 16.4 years Franchise fees 10.0 years |
Schedule of Estimated Amortization Expense for Future | Estimated amortization expense for each of the five succeeding fiscal years is as follows: (In thousands) 2024 2025 2026 2027 2028 Amortization expense $ 4,587 $ 4,190 $ 3,675 $ 3,653 $ 3,645 |
Restructuring, Asset Impairme_2
Restructuring, Asset Impairment and Other Charges (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Activity of Reserves for Closed Properties | The following table provides the activity of reserves for closed properties for 2023, 2022 and 2021. Reserves for closed properties recorded in the consolidated balance sheets are included in “Other accrued expenses” in Current liabilities and “Other long-term liabilities” in Long-term liabilities based on when the obligations are expected to be paid. Lease and (In thousands) Ancillary Costs Severance Total Balance at January 2, 2021 $ 3,349 $ 114 $ 3,463 Provision for closing charges 1,509 — 1,509 Provision for severance — 362 362 Lease termination adjustments ( 220 ) — ( 220 ) Changes in estimates 2 — 2 Accretion expense 91 — 91 Payments ( 1,607 ) ( 476 ) ( 2,083 ) Balance at January 1, 2022 3,124 — 3,124 Provision for closing charges 1,837 — 1,837 Provision for severance — 9 9 Lease termination adjustments ( 86 ) — ( 86 ) Changes in estimates 28 — 28 Accretion expense 67 — 67 Payments ( 993 ) ( 9 ) ( 1,002 ) Balance at December 31, 2022 3,977 — 3,977 Provision for severance — 21 21 Changes in estimates ( 258 ) — ( 258 ) Accretion expense 102 — 102 Payments ( 844 ) ( 21 ) ( 865 ) Balance at December 30, 2023 $ 2,977 $ — $ 2,977 |
Schedule of Restructuring Asset Impairment and Other Charges | Restructuring, asset impairment and other charges included in the consolidated statements of earnings consisted of the following: (In thousands) 2023 2022 2021 Asset impairment charges (a) $ 11,749 $ 5,086 $ 3,783 Provision for closing charges — 1,837 1,509 Gain on sales of assets related to closed facilities (b) ( 2,614 ) ( 6,324 ) ( 2,607 ) Provision for severance (c) 21 9 362 Other costs associated with site closures (d) 584 271 636 Lease termination adjustments (e) — ( 102 ) ( 799 ) Changes in estimates (f) ( 550 ) 28 2 Total $ 9,190 $ 805 $ 2,886 (a) In the current year, asset impairment charges of $ 8.0 million were incurred in the Wholesale segment related to the Company's continued supply chain network optimization in response to customer demand changes. Additional charges in the current year were incurred related to two store closures in the Retail segment and impairment losses related to a distribution location that sustained storm damage in the Wholesale segment. Asset impairment charges in 2022 were incurred primarily in the Retail segment and relate to restructuring of the Retail segment's e-commerce delivery model and a store closure . In 2021, asset impairment charges were incurred primarily in the Retail segment and relate to store closures, as well as site closures in connection with the Company’s supply chain transformation initiatives within the Wholesale segment. (b) Gain on sales of assets in the current year primarily relate to the sale of a store within the Retail segment. In 2022, gain on sales of assets primarily relates to the sales of real property of previously closed locations within both the Wholesale and Retail segments. Gain on sales of assets in 2021 primarily relate to sales of pharmacy customer lists, equipment, and real estate associated with the store closings in the Retail segment, in addition to gains on sale of vacant land in the Wholesale segment. (c) Severance charges relate to closures in the Wholesale segment as well as Retail store closings. (d) Other costs net activity in the current year primarily relates to Retail store closings. In the prior year, activity primarily relates to restructuring activity within the Wholesale segment and Retail store closings. (e) Lease termination adjustments represent the benefits recognized in connection with early lease buyouts for previously closed sites. Payments made in connection with lease buyouts were applied to reserves for closed properties and lease liabilities, as applicable. (f) Changes in estimates primarily relate to revised estimates for turnover and other lease ancillary costs associated with previously closed locations. The current year also included a $ 0.3 million gain for additional insurance proceeds received related to a distribution location that sustained significant storm damage within the Wholesale segment. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Debt Instruments | Long-term debt consists of the following: December 30, December 31, (In thousands) 2023 2022 Senior secured revolving credit facility, due November 2027 $ 522,492 $ 445,880 Finance lease liabilities (Note 10) 74,639 57,515 Other, 3.71 % - 4.36 %, due 2024 - 2033 4,743 4,813 Total debt - Principal 601,874 508,208 Unamortized debt issuance costs ( 4,394 ) ( 4,627 ) Total debt 597,480 503,581 Less current portion 8,813 6,789 Total long-term debt and finance lease liabilities $ 588,667 $ 496,792 |
Schedule of Interest Rate Terms for Each of Aforementioned Tranches | Borrowings under the credit facility bear interest at the Company’s option as either SOFR loans or Base Rate loans, subject to a grid based upon Excess Availability. The interest rate terms for each of the aforementioned tranches are as follows: Credit Outstanding as of Facility December 30, 2023 Tranche (In thousands) SOFR Rate Base Rate Tranche A $ 485,379 SOFR plus 1.25% to 1.50% Greater of: (i) the Federal Funds Rate plus 0.75% to 1.00% (ii) the SOFR Rate plus 1.25% to 1.50% (iii) the prime rate plus 0.25% to 0.50% Tranche A-1 $ 37,113 SOFR plus 2.25% to 2.50% Greater of: (i) the Federal Funds Rate plus 1.75% to 2.00% (ii) the SOFR Rate plus 2.25% to 2.50% (iii) the prime rate plus 1.25% to 1.50% |
Schedule of Aggregate Annual Maturities and Scheduled Payments of Long-term Debt | At December 30, 2023, aggregate annual maturities and scheduled payments of long-term debt are as follows: (In thousands) 2024 2025 2026 2027 2028 Thereafter Total Total borrowings $ 8,813 $ 8,693 $ 10,024 $ 530,098 $ 7,530 $ 36,716 $ 601,874 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Book Value and Estimated Fair Value of Debt Instruments, Excluding Debt Financing Costs | At December 30, 2023 and December 31, 2022, the book value and estimated fair value of the Company’s debt instruments, excluding debt financing costs, were as follows: December 30, December 31, (In thousands) 2023 2022 Book value of debt instruments, excluding debt financing costs: Current maturities of long-term debt and finance lease liabilities $ 8,813 $ 6,789 Long-term debt and finance lease liabilities 593,061 501,419 Total book value of debt instruments 601,874 508,208 Fair value of debt instruments, excluding debt financing costs 603,117 507,668 Excess (deficit) of fair value over book value $ 1,243 $ ( 540 ) |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of pay-fixed, receive-floating interest rate swap contract | Details of the pay-fixed, receive-floating interest rate swap contract as of December 30, 2023 are as follows: Effective Date Maturity Date Notional Value Pay Fixed Rate Receive Floating Rate Floating Rate Reset Terms March 17, 2023 November 17, 2027 $ 150 3.646 % One-Month CME Term SOFR Monthly |
Schedule of fair value of the interest rate swap | The location and the fair value of the interest rate swap in the consolidated balance sheets as of December 30, 2023 is as follows: Derivative Fair Value (In thousands) Consolidated Balance Sheets Location December 30, 2023 Cash Flow Hedge: Interest rate swap Prepaid expenses and other current assets $ 1,721 Interest rate swap Other long-term liabilities 1,914 Interest rate swap Accumulated other comprehensive income ( 316 ) |
Schedule of gains recognized in the condensed consolidated statements of earnings for the interest rate swap, presented on a pre-tax basis | The location and amount of gains or losses recognized in the consolidated statements of earnings for the interest rate swap, presented on a pre-tax basis, are as follows: 2023 (In thousands) Interest expense, net Total amounts of expense line items presented in the consolidated statements of $ 39,887 Gain on cash flow hedging relationships: Gain reclassified from comprehensive income into earnings 1,832 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Unions Representing Employees and the Expiration Date for Agreements | The facilities covered by CBAs, the unions representing the covered Associates and the expiration dates for each existing CBA are provided in the following table: Distribution Center Locations Union Locals Expiration Dates Lima, Ohio Warehouse IBT 908 January 2025 Lima, Ohio Drivers IBT 908 January 2025 Bellefontaine, Ohio GTL Truck Lines, Inc. IBT 908 February 2025 Bellefontaine, Ohio General Merchandise Service Division IBT 908 February 2025 Norfolk, Virginia IBT 822 April 2025 Columbus, Georgia IBT 528 September 2025 Grand Rapids, Michigan IBT 406 April 2026 Landover, Maryland IBT 639 February 2027 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Leases [Abstract] | |
Components of Lease Cost | The components of lease cost were as follows: (In thousands) 2023 2022 2021 Operating lease cost $ 55,807 $ 57,876 $ 58,410 Short-term lease cost 8,367 7,576 8,469 Finance lease cost Amortization of assets 8,244 6,134 4,645 Interest on lease liabilities 4,454 3,369 3,005 Variable rent 348 236 162 Sublease income ( 3,845 ) ( 3,907 ) ( 4,356 ) Total net lease cost $ 73,375 $ 71,284 $ 70,335 |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: December 30, December 31, (In thousands) 2023 2022 Operating leases: Operating lease assets $ 242,146 $ 257,047 Current portion of operating lease liabilities $ 41,979 $ 45,453 Noncurrent operating lease liabilities 226,118 239,062 Total operating lease liabilities $ 268,097 $ 284,515 Finance leases: Property and equipment, at cost $ 92,598 $ 73,739 Accumulated amortization ( 25,472 ) ( 21,727 ) Property and equipment, net $ 67,126 $ 52,012 Current portion of finance lease liabilities $ 7,739 $ 5,791 Noncurrent finance lease liabilities 66,900 51,724 Total finance lease liabilities $ 74,639 $ 57,515 Weighted average remaining lease term (in years): Operating leases 7.6 7.5 Finance leases 9.0 9.6 Weighted average discount rate: Operating leases 5.9 % 5.4 % Finance leases 6.8 % 6.9 % |
Schedule of Supplemental Cash Flow and Other Information Related to Leases | Supplemental cash flow and other information related to leases was as follows: (In thousands) 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 58,251 $ 61,103 $ 62,590 Operating cash flows used for finance leases 4,450 3,372 3,005 Financing cash flows used for finance leases 6,897 6,045 4,738 Lease assets obtained in exchange for lease liabilities: Total operating lease liabilities 39,018 23,027 36,867 Total finance lease liabilities 17,833 21,032 4,238 |
Schedule of Maturities of Lease Liabilities Under Operating and Finance Leases | The Company’s total future lease commitments under operating and finance leases in effect at December 30, 2023 are as follows: Operating Finance (In thousands) Leases Leases Total 2024 $ 56,296 $ 12,487 $ 68,783 2025 53,105 12,186 65,291 2026 46,824 11,467 58,291 2027 41,147 10,683 51,830 2028 31,593 10,086 41,679 Thereafter 108,062 42,671 150,733 Total 337,027 99,580 436,607 Less interest 68,930 24,941 93,871 Present value of lease liabilities 268,097 74,639 342,736 Less current portion 41,979 7,739 49,718 Long-term lease liabilities $ 226,118 $ 66,900 $ 293,018 |
Property and Equipment Owned Assets Leased to Others | Owned assets, included in property and equipment, which are leased to others are as follows: December 30, December 31, (In thousands) 2023 2022 Land and improvements $ 7,147 $ 7,154 Buildings 27,227 26,623 Owned assets leased to others 34,374 33,777 Less accumulated amortization and depreciation 12,369 11,473 Net owned assets leased to others $ 22,005 $ 22,304 |
Future Minimum Rentals to be Received Under Lease Obligations | Future minimum rentals to be received under leases in effect at December 30, 2023 are as follows: (In thousands) 2024 2025 2026 2027 2028 Thereafter Total Owned property $ 4,250 $ 3,279 $ 3,033 $ 2,653 $ 2,417 $ 14,083 $ 29,715 Leased property 3,297 2,389 1,422 857 198 15 8,178 Total $ 7,547 $ 5,668 $ 4,455 $ 3,510 $ 2,615 $ 14,098 $ 37,893 |
Associate Retirement Plans (Tab
Associate Retirement Plans (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Benefit Obligations, Pension & Other Long-Term Liabilities | The following tables set forth the actuarial present value of benefit obligations, funded status, changes in benefit obligations and plan assets, weighted average assumptions used in actuarial calculations and components of net periodic benefit costs for the Company’s significant postretirement benefit plans, excluding multi-employer plans. The current accrued, and noncurrent accrued benefit costs associated with postretirement benefits are reported in “Accrued payroll and benefits,” and “Other long-term liabilities,” respectively, in the consolidated balance sheets. Retiree Medical Plan December 30, December 31, (In thousands, except percentages) 2023 2022 Funded Status Projected/Accumulated benefit obligation: Balance at beginning of year $ 2,412 $ 11,031 Service cost — 76 Interest cost 85 185 Actuarial loss 23 30 Plan amendment — ( 6,614 ) Benefits paid ( 1,284 ) ( 2,296 ) Balance at end of year $ 1,236 $ 2,412 Fair value of plan assets: Balance at beginning of year $ — $ — Company contributions 1,284 2,296 Benefits paid ( 1,284 ) ( 2,296 ) Balance at end of year $ — $ — Unfunded status $ ( 1,236 ) $ ( 2,412 ) Components of net amount recognized in consolidated balance sheets: Current liabilities $ ( 1,236 ) $ ( 1,270 ) Noncurrent liabilities — ( 1,142 ) Net liability $ ( 1,236 ) $ ( 2,412 ) Amounts recognized in AOCI: Net actuarial loss $ 217 $ 743 Prior service credit ( 1,653 ) ( 4,960 ) Accumulated other comprehensive income $ ( 1,436 ) $ ( 4,217 ) Weighted average assumptions at measurement date: Discount rate 5.65 % 5.34 % Ultimate health care cost trend rate N/A N/A Retiree Medical Plan (In thousands, except percentages) 2023 2022 2021 Components of net periodic benefit (income) cost: Service cost $ — $ 76 $ 187 Interest cost 85 185 226 Amortization of prior service credit ( 3,307 ) ( 1,653 ) — Recognized actuarial net loss 249 200 230 Net periodic benefit (income) expense $ ( 2,973 ) $ ( 1,192 ) $ 643 Settlement expense 299 740 — Total net periodic benefit (income) cost $ ( 2,674 ) $ ( 452 ) $ 643 Weighted average assumptions used to determine net periodic benefit (income) cost: Discount rate 5.62 % 2.90 % 2.57 % |
Components of Net Periodic Pension and Postretirement Benefit Cost (Income) | Retiree Medical Plan (In thousands, except percentages) 2023 2022 2021 Components of net periodic benefit (income) cost: Service cost $ — $ 76 $ 187 Interest cost 85 185 226 Amortization of prior service credit ( 3,307 ) ( 1,653 ) — Recognized actuarial net loss 249 200 230 Net periodic benefit (income) expense $ ( 2,973 ) $ ( 1,192 ) $ 643 Settlement expense 299 740 — Total net periodic benefit (income) cost $ ( 2,674 ) $ ( 452 ) $ 643 Weighted average assumptions used to determine net periodic benefit (income) cost: Discount rate 5.62 % 2.90 % 2.57 % |
Assumed Current Healthcare Cost Trend Rates Used to Determine Net Periodic Benefit Cost (Income) | Assumed healthcare cost trend rates have a significant effect on the amounts reported for the Retiree Medical Plan. Assumed current healthcare cost trend rates used to determine net periodic benefit cost were as follows: 2023 2022 2021 Post-65 N/A N/A 7.00 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income or Loss (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Equity [Abstract] | |
Schedule Of Accumulated Other Comprehensive Income (Loss) | Changes in AOCI are as follows: (In thousands) 2023 2022 2021 Postretirement benefit plans: Balance at beginning of the year, net of tax $ 2,979 $ ( 1,455 ) $ ( 2,276 ) Other comprehensive income before reclassifications 203 6,576 837 Income tax expense ( 51 ) ( 1,614 ) ( 203 ) Other comprehensive income, net of tax, before reclassifications 152 4,962 634 Reclassification into net earnings (a) ( 2,677 ) ( 701 ) 250 Income tax benefit (expense) (b) 658 173 ( 63 ) Amounts reclassified out of AOCI, net of tax ( 2,019 ) ( 528 ) 187 Other comprehensive (loss) income, net of tax ( 1,867 ) 4,434 821 Balance at end of the year, net of tax $ 1,112 $ 2,979 $ ( 1,455 ) Interest rate swap: Balance at beginning of the year, net of tax $ — $ — $ — Other comprehensive income before reclassifications 1,419 — — Income tax expense ( 332 ) — — Other comprehensive income, net of tax, before reclassifications 1,087 — — Reclassification into net earnings (c) ( 1,832 ) — — Income tax benefit (b) 429 — — Amounts reclassified out of AOCI, net of tax ( 1,403 ) — — Other comprehensive loss, net of tax ( 316 ) — — Balance at end of the year, net of tax $ ( 316 ) $ — $ — Total accumulated other comprehensive income (loss) $ 796 $ 2,979 $ ( 1,455 ) (a) Reclassified from AOCI into Other, net, or Selling, general and administrative expense. Amounts include amortization of net actuarial loss, amortization of prior service credit, and settlement expense totaling $ 0.4 million and $ 0.7 million in 2023 and 2022, respectively. There was no settlement expense in 2021. (b) Reclassified from AOCI into Income tax expense (benefit). (c) Reclassified from AOCI into Interest expense. |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Provision for Continuing Operations | The income tax provision for continuing operations is made up of the following components: (In thousands) 2023 2022 2021 Current income tax expense: Federal $ 6,698 $ 8,585 $ 5,436 State 2,961 2,397 1,867 Total current income tax expense 9,659 10,982 7,303 Deferred income tax expense: Federal 6,546 46 14,877 State 1,683 1,369 2,726 Total deferred income tax expense 8,229 1,415 17,603 Total income tax expense $ 17,888 $ 12,397 $ 24,906 |
Reconciliation of Statutory Federal Rate to Effective Rate | A reconciliation of the statutory federal rate to the effective rate is as follows: 2023 2022 2021 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % Stock compensation ( 0.9 ) ( 2.8 ) 0.0 Non-deductible expenses 3.4 5.5 1.7 Change in tax contingencies ( 1.3 ) ( 0.1 ) 0.0 Charitable product donations ( 0.2 ) ( 0.3 ) ( 0.1 ) Other, net ( 0.3 ) 0.1 ( 0.3 ) State taxes, net of federal income tax benefit 5.3 6.7 3.8 Tax credits ( 1.5 ) ( 3.7 ) ( 0.9 ) Effective income tax rate 25.5 % 26.4 % 25.2 % |
Summary of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities resulting from temporary differences as of December 30, 2023 and December 31, 2022 are as follows: December 30, December 31, (In thousands) 2023 2022 Deferred tax assets: Employee benefits $ 21,074 $ 27,387 Accrued workers' compensation 2,082 2,126 Allowance for credit losses 1,500 1,823 Restructuring 601 655 Deferred revenue 987 1,266 Stock warrant 31 626 Lease liabilities 82,970 82,284 Accrued insurance 1,045 985 State net operating loss carryforwards (a) 5,507 5,608 All other 8,538 4,433 Total deferred tax assets 124,335 127,193 Valuation allowances ( 399 ) ( 357 ) Net deferred tax assets 123,936 126,836 Deferred tax liabilities: Property and equipment 49,038 48,251 Lease assets 74,472 73,986 Inventory 31,618 33,290 Goodwill 36,936 33,606 Intangible assets 2,200 1,195 All other 3,576 2,801 Total deferred tax liabilities 197,840 193,129 Net deferred tax liability $ 73,904 $ 66,293 (a) As of December 30, 2023, the Company’s state net operating loss carryforwards in various taxing jurisdictions expire in tax years 2024 through 2043 if not utilized . |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: (In thousands) 2023 2022 Balance at beginning of year $ 1,165 $ 1,220 Lapsed statutes of limitations ( 185 ) ( 55 ) Effectively settled ( 836 ) — Balance at end of year $ 144 $ 1,165 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Restricted Stock Activity | The following table summarizes restricted stock activity for 2023, 2022 and 2021: Restricted Weighted Average Stock Grant-Date Awards Fair Value Outstanding and nonvested at January 2, 2021 973,948 $ 17.72 Granted 562,653 18.96 Vested ( 388,403 ) 19.81 Forfeited ( 116,361 ) 18.19 Outstanding and nonvested at January 1, 2022 1,031,837 17.56 Granted 391,334 28.63 Vested ( 470,145 ) 17.92 Forfeited ( 89,963 ) 20.71 Outstanding and nonvested at December 31, 2022 863,063 22.05 Granted 447,910 26.95 Vested ( 432,549 ) 21.16 Forfeited ( 58,967 ) 25.96 Outstanding and nonvested at December 30, 2023 819,457 $ 24.92 |
Summary of Allocation of Stock-Based Compensation Expense in Consolidated Statements of Operations | -based compensation expense recognized and included in “Selling, general and administrative expenses” in the consolidated statements of earnings, and related tax benefits were as follows: (In thousands) 2023 2022 2021 Restricted stock expense $ 10,220 $ 8,308 $ 6,868 Performance share unit expense 2,048 — — Income tax benefit ( 4,199 ) ( 4,094 ) ( 1,744 ) Stock-based compensation expense, net of tax $ 8,069 $ 4,214 $ 5,124 Stock-based compensation expense is recognized net of estimated forfeitures, determined based on historical experience. |
Summary of Stock Warrant Activity | The following table summarizes the Warrant activity for 2023, 2022 and 2021: Warrant Outstanding and nonvested at January 2, 2021 4,349,817 Vested ( 434,984 ) Outstanding and nonvested at January 1, 2022 3,914,833 Vested ( 434,984 ) Outstanding and nonvested at December 31, 2022 3,479,849 Vested ( 217,492 ) Outstanding and nonvested at December 30, 2023 3,262,357 Warrant |
Summary of Stock-Based Payment Expense Recognized Included as a Reduction of Net Sales in Consolidated Statements of Operations | expense recognized as a reduction of “Net sales” in the consolidated statements of earnings, and related tax benefits were as follows: (In thousands) 2023 2022 2021 Warrant expense $ 1,559 $ 2,158 $ 1,958 Tax benefits ( 133 ) ( 203 ) ( 152 ) Warrant expense, net of tax $ 1,426 $ 1,955 $ 1,806 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | Supplemental cash flow information is as follows: (In thousands) 2023 2022 2021 Non-cash investing activities: Capital expenditures included in accounts payable $ 28,102 $ 25,701 $ 15,277 Other supplemental cash flow information: Cash paid for interest 37,939 18,431 12,245 Income tax payments (refunds) 11,172 6,513 ( 10,110 ) |
Reporting Segment Information (
Reporting Segment Information (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Operating Segment | The following tables set forth information about the Company by reportable segment: (In thousands) Wholesale Retail Total 2023 Net sales to external customers $ 6,919,217 $ 2,810,002 $ 9,729,219 Inter-segment sales 1,189,438 1,332 1,190,770 Acquisition and integration, net 216 3,200 3,416 Restructuring and asset impairment, net 8,548 642 9,190 Depreciation and amortization 51,535 47,104 98,639 Operating earnings 87,701 19,011 106,712 Capital expenditures 75,509 44,821 120,330 2022 Net sales to external customers $ 6,845,236 $ 2,797,864 $ 9,643,100 Inter-segment sales 1,204,497 928 1,205,425 Acquisition and integration, net 239 104 343 Restructuring and asset impairment, net ( 2,363 ) 3,168 805 Depreciation and amortization 47,601 46,579 94,180 Operating earnings 55,137 13,407 68,544 Capital expenditures 52,394 44,886 97,280 2021 Net sales to external customers $ 6,349,753 $ 2,581,286 $ 8,931,039 Inter-segment sales 1,095,647 827 1,096,474 Acquisition and integration, net — 708 708 Restructuring and asset impairment, net 427 2,459 2,886 Depreciation and amortization 46,487 46,224 92,711 Operating earnings 45,229 66,971 112,200 Capital expenditures 46,020 33,407 79,427 December 30, December 31, (In thousands) 2023 2022 Total assets Wholesale $ 1,576,182 $ 1,525,760 Retail 779,393 780,801 Total $ 2,355,575 $ 2,306,561 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Basis of Presentation - Additional Information (Detail) $ in Thousands | 12 Months Ended | |||
Dec. 30, 2023 USD ($) Segment shares | Dec. 31, 2022 USD ($) shares | Jan. 01, 2022 USD ($) shares | Jan. 02, 2021 USD ($) | |
Significant Accounting Policies And Basis Of Presentation [Line Items] | ||||
Revenue recognition performance obligation on international shipments | $ 0 | |||
Allowance for credit loss | 5,823 | $ 7,046 | $ 5,145 | $ 6,603 |
Bad debt expenses | $ (400) | $ 3,300 | (300) | |
Inventories valued on LIFO method | 90.40% | 87.50% | ||
Under Value of carrying value of inventories than its replacement value | $ 154,700 | $ 138,600 | ||
Effect on income due to change in LIFO valuation on liquidation | 4,000 | 2,100 | 2,100 | |
Capitalized computer software | 45,900 | 47,300 | ||
Implementation costs of cloud computing arrangement | 24,300 | 21,300 | ||
Workers' compensation liability | 500 | |||
Health care insurance liability | 600 | |||
Automobile insurance liability | 2,000 | |||
Current portion of self insurance liability | 10,900 | 10,200 | ||
Long term portion of self insurance liability | $ 7,300 | $ 7,900 | ||
Issuance of preferred stock | shares | 10,000,000 | 10,000,000 | ||
Preferred stock, shares outstanding | shares | 0 | 0 | ||
Advertising expenses | $ 33,700 | $ 37,600 | 37,700 | |
Number of reportable segment | Segment | 2 | |||
Retained earnings | $ 317,087 | 295,028 | ||
Current Accounts and Notes Receivable [Member] | ||||
Significant Accounting Policies And Basis Of Presentation [Line Items] | ||||
Allowance for credit loss | 4,611 | 6,098 | 4,414 | 6,232 |
Long Term Notes Receivable [Member] | ||||
Significant Accounting Policies And Basis Of Presentation [Line Items] | ||||
Allowance for credit loss | $ 1,212 | $ 948 | $ 731 | $ 371 |
Restricted Stock Awards [Member] | ||||
Significant Accounting Policies And Basis Of Presentation [Line Items] | ||||
Weighted average stock awards not included in EPS calculations | shares | 19,765,000 | 2,882,000 | 13,614,000 | |
Minimum [Member] | ||||
Significant Accounting Policies And Basis Of Presentation [Line Items] | ||||
Percentage of revenues recognized at a point in time | 99% | |||
Cloud computing arrangement, options to extend term | 3 years | |||
Reserved expenses paid over remaining lease term | 1 year | |||
Maximum [Member] | ||||
Significant Accounting Policies And Basis Of Presentation [Line Items] | ||||
Cloud computing arrangement, options to extend term | 8 years | |||
Reserved expenses paid over remaining lease term | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies and Basis of Presentation - Summary of Accounts and Notes Receivable (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Customer notes receivable | $ 2,613 | $ 1,622 |
Customer accounts receivable | 379,208 | 375,550 |
Other receivables | 44,649 | 32,942 |
Allowance for credit losses | (4,611) | (6,098) |
Net accounts and current notes receivable | 421,859 | 404,016 |
Long-term notes receivable | 7,369 | 8,573 |
Allowance for credit losses | (1,212) | (948) |
Net long-term notes receivable | $ 6,157 | $ 7,625 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies and Basis of Presentation - Property And Equipment Estimated Useful Lives (Detail) | Dec. 30, 2023 |
Land Improvements [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Minimum [Member] | Buildings and Improvements [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Minimum [Member] | Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Maximum [Member] | Buildings and Improvements [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, useful life | 40 years |
Maximum [Member] | Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies and Basis of Presentation - Summary of Changes in SpartanNash's Self-Insurance Liability (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Payables and Accruals [Abstract] | |||
Balance at beginning of year | $ 18,157 | $ 19,445 | $ 16,737 |
Expenses | 63,722 | 64,386 | 72,101 |
Claim payments, net of employee contributions | (63,700) | (65,674) | (69,393) |
Balance at end of year | $ 18,179 | $ 18,157 | $ 19,445 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies and Basis of Presentation - Schedule of Computation of Basic and Diluted EPS For Continuing Operations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Numerator: | |||
Net earnings | $ 52,237 | $ 34,518 | $ 73,751 |
Adjustment for earnings attributable to participating securities | (408) | (404) | (1,399) |
Net earnings used in calculating earnings per share | $ 51,829 | $ 34,114 | $ 72,352 |
Denominator: | |||
Weighted average shares outstanding, including participating securities | 34,211 | 35,279 | 35,639 |
Adjustment for participating securities | (267) | (413) | (676) |
Shares used in calculating basic earnings per share | 33,944 | 34,866 | 34,963 |
Shares used in calculating diluted earnings per share | 34,634 | 35,900 | 35,267 |
Basic earnings per share | $ 1.53 | $ 0.98 | $ 2.07 |
Diluted earnings per share | $ 1.5 | $ 0.95 | $ 2.05 |
Stock Warrants [Member] | |||
Denominator: | |||
Effect of dilutive restricted stock awards | 584 | 847 | 225 |
Restricted Stock Awards [Member] | |||
Denominator: | |||
Effect of dilutive restricted stock awards | 106 | 187 | 79 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Disaggregation Of Revenue [Line Items] | |||
Revenue recognition performance obligation | $ 0 | ||
Revenue, remaining performance obligation, optional exemption, performance obligation | true | ||
Revenue recognition contract terms | 30 days | ||
Contract assets | $ 0 | $ 0 | |
Recognized bad debt expense | 0.3 | $ 1.1 | $ 0.4 |
Present value of potential obligation for sub-lease | 2.9 | ||
Present value of potiential assigned lease obligation | $ 7.6 | ||
Maximum [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue recognition contract terms | 1 year | ||
Loan repayable period | 10 years | ||
Minimum [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Loan repayable period | 3 years | ||
Customer Concentration Risk [Member] | Net Sales [Member] | Wholesale Segment [Member] | Customer One [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of consolidated net sales | 16% | 16% | 17% |
Customer Concentration Risk [Member] | Net Sales [Member] | Wholesale Segment [Member] | Other Customers [Member] | Maximum [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of consolidated net sales | 10% | 10% | 10% |
Revenue - Summary of Informatio
Revenue - Summary of Information about Disaggregated Revenue of Reportable Segments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 9,729,219 | $ 9,643,100 | $ 8,931,039 |
Center store [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 3,760,137 | 3,745,431 | 3,421,083 |
Fresh [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 3,202,323 | 3,240,146 | 3,019,917 |
Non-food [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 2,498,495 | 2,340,875 | 2,211,101 |
Other Product [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 102,580 | 114,392 | 121,702 |
Fuel [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 165,684 | 202,256 | 157,236 |
Individuals Customer [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 2,808,962 | 2,796,858 | 2,580,277 |
Independent Retailers [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 2,377,036 | 2,363,597 | 2,197,892 |
National Accounts [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 2,218,003 | 2,311,114 | 2,211,458 |
Military [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 2,277,966 | 2,115,353 | 1,882,602 |
Other Customers [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 47,252 | 56,178 | 58,810 |
Retail [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 2,810,002 | 2,797,864 | 2,581,286 |
Retail [Member] | Center store [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 1,081,840 | 1,073,765 | 1,001,920 |
Retail [Member] | Fresh [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 1,048,759 | 1,068,240 | 992,897 |
Retail [Member] | Non-food [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 512,679 | 452,557 | 427,872 |
Retail [Member] | Other Product [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 1,040 | 1,046 | 1,361 |
Retail [Member] | Fuel [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 165,684 | 202,256 | 157,236 |
Retail [Member] | Individuals Customer [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 2,808,962 | 2,796,858 | 2,580,277 |
Retail [Member] | Other Customers [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 1,040 | 1,006 | 1,009 |
Wholesale [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 6,919,217 | 6,845,236 | 6,349,753 |
Wholesale [Member] | Center store [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 2,678,297 | 2,671,666 | 2,419,163 |
Wholesale [Member] | Fresh [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 2,153,564 | 2,171,906 | 2,027,020 |
Wholesale [Member] | Non-food [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 1,985,816 | 1,888,318 | 1,783,229 |
Wholesale [Member] | Other Product [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 101,540 | 113,346 | 120,341 |
Wholesale [Member] | Independent Retailers [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 2,377,036 | 2,363,597 | 2,197,892 |
Wholesale [Member] | National Accounts [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 2,218,003 | 2,311,114 | 2,211,458 |
Wholesale [Member] | Military [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 2,277,966 | 2,115,353 | 1,882,602 |
Wholesale [Member] | Other Customers [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 46,212 | $ 55,172 | $ 57,801 |
Revenue - Summary of Changes in
Revenue - Summary of Changes in Allowance for Credit Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Beginning balance | $ 7,046 | $ 5,145 | $ 6,603 |
Changes in credit loss estimates | (665) | 2,756 | (741) |
Write-offs charged against the allowance | (558) | (855) | (717) |
Ending balance | 5,823 | 7,046 | 5,145 |
Current Accounts and Notes Receivable [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Beginning balance | 6,098 | 4,414 | 6,232 |
Changes in credit loss estimates | (929) | 2,539 | (1,101) |
Write-offs charged against the allowance | (558) | (855) | (717) |
Ending balance | 4,611 | 6,098 | 4,414 |
Long Term Notes Receivable [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Beginning balance | 948 | 731 | 371 |
Changes in credit loss estimates | 264 | 217 | 360 |
Ending balance | $ 1,212 | $ 948 | $ 731 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 1,596,754 | $ 1,481,850 |
Less accumulated depreciation and amortization | 947,683 | 871,630 |
Property and equipment, net | 649,071 | 610,220 |
Land and Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 91,031 | 91,859 |
Buildings and Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 646,707 | 612,471 |
Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 799,721 | 724,077 |
Construction in progress | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 59,295 | $ 53,443 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 68 | $ 66.7 | $ 65.9 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Changes in carrying amount of goodwill - (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Goodwill and Intangible Assets [Line Items] | |
Goodwill, Beginning Balance | $ 181,035 |
Acquisitions | 1,125 |
Goodwill, Ending Balance | 182,160 |
Wholesale [Member] | |
Goodwill and Intangible Assets [Line Items] | |
Goodwill, Beginning Balance | 181,035 |
Acquisitions | 0 |
Goodwill, Ending Balance | 181,035 |
Retail [Member] | |
Goodwill and Intangible Assets [Line Items] | |
Goodwill, Beginning Balance | 0 |
Acquisitions | 1,125 |
Goodwill, Ending Balance | $ 1,125 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 USD ($) Segment | Dec. 31, 2022 USD ($) | Jan. 01, 2022 USD ($) | |
Goodwill [Line Items] | |||
Number of reporting units | Segment | 2 | ||
Weighted average cost of capital | 9.60% | ||
Amortization expenses of intangible assets | $ 4.9 | $ 5 | $ 5.2 |
Trade Names & Liquor Licenses [Member] | |||
Goodwill [Line Items] | |||
Indefinite-lived intangible assets | $ 67.8 | $ 67.8 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Components of Amortized Intangible Assets , Includes in Intangible Assets, Net (Detail) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 66,560 | $ 66,815 |
Accumulated Amortization | 32,850 | 28,301 |
Non-compete agreements [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,545 | 3,545 |
Accumulated Amortization | 3,190 | 2,621 |
Pharmacy customer prescription lists [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,869 | 4,168 |
Accumulated Amortization | 2,853 | 2,598 |
Customer relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 57,937 | 57,937 |
Accumulated Amortization | 26,146 | 22,484 |
Franchise Fees [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,209 | 1,165 |
Accumulated Amortization | $ 661 | $ 598 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Summary of Weighted Average Amortization Periods for Amortizable Intangible Assets (Detail) | 12 Months Ended |
Dec. 30, 2023 | |
Non-compete agreements [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Life | 6 years 4 months 24 days |
Pharmacy customer prescription lists [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Life | 8 years 1 month 6 days |
Customer relationships [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Life | 16 years 4 months 24 days |
Franchise Fees [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Life | 10 years |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization Expense for Future (Detail) $ in Thousands | Dec. 30, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 4,587 |
2025 | 4,190 |
2026 | 3,675 |
2027 | 3,653 |
2028 | $ 3,645 |
Restructuring, Asset Impairme_3
Restructuring, Asset Impairment and Other Charges - Schedule of Activity of Reserves for Closed Properties (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | ||
Restructuring Cost And Reserve [Line Items] | ||||
Beginning balance | $ 3,977 | $ 3,124 | $ 3,463 | |
Provision for closing charges | 1,837 | 1,509 | ||
Provision for severance | 21 | 9 | 362 | |
Lease termination adjustments | (86) | (220) | ||
Changes in estimates | (258) | 28 | 2 | |
Accretion expense | 102 | 67 | 91 | |
Payments | (865) | (1,002) | (2,083) | |
Ending balance | 2,977 | 3,977 | 3,124 | |
Business Restructuring Reserves [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Provision for closing charges | 0 | 1,837 | 1,509 | |
Provision for severance | [1] | 21 | 9 | 362 |
Lease and Ancillary Costs [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Beginning balance | 3,977 | 3,124 | 3,349 | |
Provision for closing charges | 1,837 | 1,509 | ||
Lease termination adjustments | (86) | (220) | ||
Changes in estimates | (258) | 28 | 2 | |
Accretion expense | 102 | 67 | 91 | |
Payments | (844) | (993) | (1,607) | |
Ending balance | 2,977 | 3,977 | 3,124 | |
Severance [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Beginning balance | 114 | |||
Provision for severance | 21 | 9 | 362 | |
Payments | $ (21) | $ (9) | $ (476) | |
[1] Severance charges relate to closures in the Wholesale segment as well as Retail store closings. |
Restructuring, Asset Impairme_4
Restructuring, Asset Impairment and Other Charges - Schedule of Restructuring Asset Impairment and Other Charges (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | ||
Restructuring Cost And Reserve [Line Items] | ||||
Provision for closing charges | $ 1,837 | $ 1,509 | ||
Gain on sales of assets related to closed facilities | $ 259 | 1,073 | (106) | |
Provision for severance | 21 | 9 | 362 | |
Lease and Ancillary Costs [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Provision for closing charges | 1,837 | 1,509 | ||
Business Restructuring Reserves [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Asset impairment charges | [1] | 11,749 | 5,086 | 3,783 |
Provision for closing charges | 0 | 1,837 | 1,509 | |
Gain on sales of assets related to closed facilities | [2] | (2,614) | (6,324) | (2,607) |
Provision for severance | [3] | 21 | 9 | 362 |
Other costs associated with site closures | [4] | 584 | 271 | 636 |
Lease termination adjustments | [5] | 0 | (102) | (799) |
Changes in estimates | [6] | (550) | 28 | 2 |
Restructuring and asset impairment | $ 9,190 | $ 805 | $ 2,886 | |
[1] In the current year, asset impairment charges of $ 8.0 million were incurred in the Wholesale segment related to the Company's continued supply chain network optimization in response to customer demand changes. Additional charges in the current year were incurred related to two store closures in the Retail segment and impairment losses related to a distribution location that sustained storm damage in the Wholesale segment. Asset impairment charges in 2022 were incurred primarily in the Retail segment and relate to restructuring of the Retail segment's e-commerce delivery model and a store closure . In 2021, asset impairment charges were incurred primarily in the Retail segment and relate to store closures, as well as site closures in connection with the Company’s supply chain transformation initiatives within the Wholesale segment. Gain on sales of assets in the current year primarily relate to the sale of a store within the Retail segment. In 2022, gain on sales of assets primarily relates to the sales of real property of previously closed locations within both the Wholesale and Retail segments. Gain on sales of assets in 2021 primarily relate to sales of pharmacy customer lists, equipment, and real estate associated with the store closings in the Retail segment, in addition to gains on sale of vacant land in the Wholesale segment. Severance charges relate to closures in the Wholesale segment as well as Retail store closings. Other costs net activity in the current year primarily relates to Retail store closings. In the prior year, activity primarily relates to restructuring activity within the Wholesale segment and Retail store closings. Lease termination adjustments represent the benefits recognized in connection with early lease buyouts for previously closed sites. Payments made in connection with lease buyouts were applied to reserves for closed properties and lease liabilities, as applicable. Changes in estimates primarily relate to revised estimates for turnover and other lease ancillary costs associated with previously closed locations. The current year also included a $ 0.3 million gain for additional insurance proceeds received related to a distribution location that sustained significant storm damage within the Wholesale segment. |
Restructuring, Asset Impairme_5
Restructuring, Asset Impairment and Other Charges - Schedule of Restructuring Asset Impairment and Other Charges (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Restructuring Cost And Reserve [Line Items] | |||
Gain on Business Interruption Insurance Recovery | $ 300 | ||
Gain on Business Interruption Insurance Recovery, Statement of Income or Comprehensive Income [Extensible Enumeration] | Operating Income (Loss) | ||
Lease ancillary costs | $ 86 | $ 220 | |
Lease and Ancillary Costs [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Lease ancillary costs | $ 86 | $ 220 | |
Wholesale Segment [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Asset impairment charges | $ 8,000 |
Restructuring, Asset Impairme_6
Restructuring, Asset Impairment and Other Charges - Additional Information (Detail) - Significant unobservable inputs (Level 3) [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets carrying value | $ 20.6 | $ 5.2 | $ 27.5 |
Fair Value Measurements Nonrecurring [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets measured fair value on nonrecurring basis | 8.9 | 0.1 | 23.7 |
Impairment charges | $ 11.7 | $ 5.1 | $ 3.8 |
Long-Term Debt - Summary of Deb
Long-Term Debt - Summary of Debt Instruments (Detail) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Finance lease liabilities (Note 10) | $ 74,639 | $ 57,515 |
Other, 3.71% - 4.36%, due 2024 - 2033 | 4,743 | 4,813 |
Total debt - Principal | 601,874 | 508,208 |
Unamortized debt issuance costs | (4,394) | (4,627) |
Total debt | 597,480 | 503,581 |
Less current portion | 8,813 | 6,789 |
Total long-term debt and finance lease liabilities | 588,667 | 496,792 |
Senior Secured Revolving Credit Facility | Revolving credit agreement [Member] | ||
Debt Instrument [Line Items] | ||
Senior secured revolving credit facility, due November 2027 | $ 522,492 | $ 445,880 |
Long-Term Debt - Summary of D_2
Long-Term Debt - Summary of Debt Instruments (Parenthetical) (Detail) - Long-term Debt [Member] | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Other debt, due date, start | 2024 | 2024 |
Other debt, due date, end | 2033 | 2033 |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate Range | 3.71% | 3.71% |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate Range | 4.36% | 4.36% |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Nov. 17, 2022 | |
Debt Instrument [Line Items] | |||
Unused portion of loan commitments rate | 0.25% | ||
Maintenance of excess borrowing base | 10% | ||
Current borrowing available under credit facility | $ 483.2 | $ 447.8 | |
Weighted average interest rate of borrowings | 7.03% | ||
Letter of credit [Member] | |||
Debt Instrument [Line Items] | |||
Unused borrowing capacity | $ 17.7 | ||
Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Additional borrowings available under credit facility | $ 195 | ||
Maintenance of excess borrowing base | 10% | ||
Credit Agreement [Member] | Revolving credit agreement [Member] | Tranche A [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Increase (Decrease), Other, Net | $ 130 | ||
Line of credit facility maximum borrowing capacity | 1,170 | ||
Credit Agreement [Member] | Revolving credit agreement [Member] | Tranche A-1 [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility maximum borrowing capacity | $ 40 |
Long-Term Debt - Schedule of In
Long-Term Debt - Schedule of Interest Rate Terms for Each of Aforementioned Tranches (Detail) $ in Thousands | Dec. 30, 2023 USD ($) |
Tranche A [Member] | |
Debt Instrument [Line Items] | |
Outstanding | $ 485,379 |
Tranche A-1 [Member] | |
Debt Instrument [Line Items] | |
Outstanding | $ 37,113 |
Long-Term Debt - Schedule of Ag
Long-Term Debt - Schedule of Aggregate Annual Maturities and Scheduled Payments of Long-term Debt (Detail) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Long-Term Debt, Unclassified [Abstract] | ||
2024 | $ 8,813 | |
2025 | 8,693 | |
2026 | 10,024 | |
2027 | 530,098 | |
2028 | 7,530 | |
Thereafter | 36,716 | |
Total debt - Principal | $ 601,874 | $ 508,208 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Book Value and Estimated Fair Value of Debt Instruments, Excluding Debt Financing Costs (Detail) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Book value of debt instruments, excluding debt financing costs: | ||
Current maturities of long-term debt and finance lease liabilities | $ 8,813 | $ 6,789 |
Long-term debt and finance lease liabilities | 593,061 | 501,419 |
Total book value of debt instruments | 601,874 | 508,208 |
Fair value of debt instruments, excluding debt financing costs | 603,117 | 507,668 |
Excess (deficit) of fair value over book value | $ 1,243 | $ (540) |
Derivatives - Schedule of pay-f
Derivatives - Schedule of pay-fixed, receive-floating interest rate swap contract (Details) (Details) $ in Millions | 12 Months Ended |
Dec. 30, 2023 USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Effective Date | Mar. 17, 2023 |
Maturity Date | Nov. 17, 2027 |
Notional Value | $ 150 |
Pay Fixed Rate | 3.646% |
Receive Floating Rate | One-Month CME Term SOFR |
Debt Instrument, Interest Rate Terms | Monthly |
Derivatives - Schedule of fair
Derivatives - Schedule of fair value of the interest rate swap (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 |
Offsetting Assets [Line Items] | |||
Prepaid expenses and other current assets | $ 62,440 | $ 62,244 | |
Other assets, net | 103,174 | 84,382 | |
Accumulated other comprehensive loss | 796 | $ 2,979 | $ (1,455) |
Interest Rate Swap [Member] | |||
Offsetting Assets [Line Items] | |||
Prepaid expenses and other current assets | 1,721 | ||
Other long-term liabilities | 1,914 | ||
Accumulated other comprehensive loss | $ (316) |
Derivatives - Schedule of gains
Derivatives - Schedule of gains recognized in the condensed consolidated statements of earnings for the interest rate swap, presented on a pre-tax basis (Details) $ in Thousands | 12 Months Ended |
Dec. 30, 2023 USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Total amounts of expense line items presented in the condensed consolidated statements of earnings in which the effects of cash flow hedges are recorded | $ 39,887 |
Gain on cash flow hedging relationships: | |
Gain reclassified from comprehensive income into earnings | $ 1,832 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 30, 2023 | Jan. 12, 2023 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Loss Contingencies [Line Items] | |||||
Rents received from subleases | $ 3,845 | $ 3,907 | $ 4,356 | ||
Percentage of associates represent by union covered by CBAs | 7% | ||||
Critical and declining zone fund status | Less than 65 percent | ||||
Special Financial Assistance Member | |||||
Loss Contingencies [Line Items] | |||||
Multiemployer Pension Plan received in financial assistance | $ 35,800,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Unions Representing Employees and the Expiration Date for Agreements (Detail) | 12 Months Ended |
Dec. 30, 2023 | |
Landover, Maryland [Member] | |
Commitments And Contingencies [Line Items] | |
Union Locals | IBT 639 |
Expiration Dates | 2027-02 |
Lima, Ohio Warehouse [Member] | |
Commitments And Contingencies [Line Items] | |
Union Locals | IBT 908 |
Expiration Dates | 2025-01 |
Lima, Ohio Drivers [Member] | |
Commitments And Contingencies [Line Items] | |
Union Locals | IBT 908 |
Expiration Dates | 2025-01 |
Bellefontaine, Ohio GTL Truck Lines, Inc. [Member] | |
Commitments And Contingencies [Line Items] | |
Union Locals | IBT 908 |
Expiration Dates | 2025-02 |
Bellefontaine, Ohio General Merchandise Service Division [Member] | |
Commitments And Contingencies [Line Items] | |
Union Locals | IBT 908 |
Expiration Dates | 2025-02 |
Norfolk, Virginia [Member] | |
Commitments And Contingencies [Line Items] | |
Union Locals | IBT 822 |
Expiration Dates | 2025-04 |
Columbus, Georgia [Member] | |
Commitments And Contingencies [Line Items] | |
Union Locals | IBT 528 |
Expiration Dates | 2025-09 |
Grand Rapids Michigan, [Member] | |
Commitments And Contingencies [Line Items] | |
Union Locals | IBT 406 |
Expiration Dates | 2026-04 |
Leases - Additional Information
Leases - Additional Information (Detail) | 12 Months Ended |
Dec. 30, 2023 | |
Minimum [Member] | |
Lessee Lease Description [Line Items] | |
Leases, renewal term | 1 year |
Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Leases, renewal term | 10 years |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Leases [Abstract] | |||
Operating lease cost | $ 55,807 | $ 57,876 | $ 58,410 |
Short-term lease cost | 8,367 | 7,576 | 8,469 |
Finance lease cost | |||
Amortization of assets | 8,244 | 6,134 | 4,645 |
Interest on lease liabilities | 4,454 | 3,369 | 3,005 |
Variable rent | 348 | 236 | 162 |
Sublease income | (3,845) | (3,907) | (4,356) |
Total net lease cost | $ 73,375 | $ 71,284 | $ 70,335 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Operating leases: | ||
Operating lease assets | $ 242,146 | $ 257,047 |
Current portion of operating lease liabilities | 41,979 | 45,453 |
Operating Lease, Liability, Noncurrent | 226,118 | 239,062 |
Total operating lease liabilities | 268,097 | 284,515 |
Finance leases: | ||
Property and equipment, at cost | 92,598 | 73,739 |
Accumulated amortization | (25,472) | (21,727) |
Property and equipment, net | $ 67,126 | $ 52,012 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property and equipment, net | Property and equipment, net |
Current portion of finance lease liabilities | $ 7,739 | $ 5,791 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current portion of long-term debt and finance lease liabilities | Current portion of long-term debt and finance lease liabilities |
Noncurrent finance lease liabilities | $ 66,900 | $ 51,724 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt and finance lease liabilities | Long-term debt and finance lease liabilities |
Total finance lease liabilities | $ 74,639 | $ 57,515 |
Weighted average remaining lease term (in years): | ||
Operating leases | 7 years 7 months 6 days | 7 years 6 months |
Finance leases | 9 years | 9 years 7 months 6 days |
Weighted average discount rate: | ||
Operating leases | 5.90% | 5.40% |
Finance leases | 6.80% | 6.90% |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Cash Flow and Other Information Related to Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows used for operating leases | $ 58,251 | $ 61,103 | $ 62,590 |
Operating cash flows used for finance leases | 4,450 | 3,372 | 3,005 |
Financing cash flows used for finance leases | 6,897 | 6,045 | 4,738 |
Lease assets obtained in exchange for lease liabilities: | |||
Total operating lease liabilities | 39,018 | 23,027 | 36,867 |
Total finance lease liabilities | $ 17,833 | $ 21,032 | $ 4,238 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities Under Operating and Finance Leases (Detail) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating Leases, 2024 | $ 56,296 | |
Operating Leases, 2025 | 53,105 | |
Operating Leases, 2026 | 46,824 | |
Operating Leases, 2027 | 41,147 | |
Operating Leases, 2028 | 31,593 | |
Operating Leases, Thereafter | 108,062 | |
Operating Leases, Total | 337,027 | |
Operating Leases, Less interest | 68,930 | |
Total operating lease liabilities | 268,097 | $ 284,515 |
Operating Leases, Less current portion | 41,979 | 45,453 |
Operating Leases, Long-term lease liabilities | 226,118 | 239,062 |
Finance Leases, 2024 | 12,487 | |
Finance Leases, 2025 | 12,186 | |
Finance Leases, 2026 | 11,467 | |
Finance Leases, 2027 | 10,683 | |
Finance Leases, 2028 | 10,086 | |
Finance Leases, Thereafter | 42,671 | |
Finance Leases, Total | 99,580 | |
Finance Leases, Less interest | 24,941 | |
Total finance lease liabilities | 74,639 | 57,515 |
Finance Leases, Less current portion | 7,739 | 5,791 |
Finance Leases, Long-term lease liabilities | 66,900 | $ 51,724 |
Operating and Finance Leases, 2024 | 68,783 | |
Operating and Finance Leases, 2025 | 65,291 | |
Operating and Finance Leases, 2026 | 58,291 | |
Operating and Finance Leases, 2027 | 51,830 | |
Operating and Finance Leases, 2028 | 41,679 | |
Operating and Finance Leases, Thereafter | 150,733 | |
Operating and Finance Leases, Total | 436,607 | |
Operating and Finance Leases, Less interest | 93,871 | |
Operating and Finance Leases, Present value of lease liabilities | 342,736 | |
Operating and Finance Leases, Less current portion | 49,718 | |
Operating and Finance Leases, Long-term lease liabilities | $ 293,018 |
Leases - Property and Equipment
Leases - Property and Equipment Owned Assets Leased to Others (Detail) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Lessor Lease Description [Line Items] | ||
Property and equipment, owned assets leased to others | $ 34,374 | $ 33,777 |
Less accumulated amortization and depreciation | 12,369 | 11,473 |
Net owned assets leased to others | 22,005 | 22,304 |
Land and improvements [Member] | ||
Lessor Lease Description [Line Items] | ||
Property and equipment, owned assets leased to others | 7,147 | 7,154 |
Buildings [Member] | ||
Lessor Lease Description [Line Items] | ||
Property and equipment, owned assets leased to others | $ 27,227 | $ 26,623 |
Leases - Future Minimum Rentals
Leases - Future Minimum Rentals to be Received Under Lease Obligations (Detail) $ in Thousands | Dec. 30, 2023 USD ($) |
Schedule of Leases Future Minimum Payments Receivable [Line Items] | |
Operating Lease, 2024 | $ 7,547 |
Operating Lease, 2025 | 5,668 |
Operating Lease, 2026 | 4,455 |
Operating Lease, 2027 | 3,510 |
Operating Lease, 2028 | 2,615 |
Operating Lease, Thereafter | 14,098 |
Operating Lease, Total | 37,893 |
Owned Property [Member] | |
Schedule of Leases Future Minimum Payments Receivable [Line Items] | |
Operating Lease, 2024 | 4,250 |
Operating Lease, 2025 | 3,279 |
Operating Lease, 2026 | 3,033 |
Operating Lease, 2027 | 2,653 |
Operating Lease, 2028 | 2,417 |
Operating Lease, Thereafter | 14,083 |
Operating Lease, Total | 29,715 |
Leased Property [Member] | |
Schedule of Leases Future Minimum Payments Receivable [Line Items] | |
Operating Lease, 2024 | 3,297 |
Operating Lease, 2025 | 2,389 |
Operating Lease, 2026 | 1,422 |
Operating Lease, 2027 | 857 |
Operating Lease, 2028 | 198 |
Operating Lease, Thereafter | 15 |
Operating Lease, Total | $ 8,178 |
Associate Retirement Plans - Ad
Associate Retirement Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jul. 01, 2023 | Jul. 01, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined contribution plans expense | $ 12,000 | $ 12,000 | $ 11,800 | ||
Cash surrender value of plan assets included in other long term assets | 103,174 | 84,382 | |||
Michigan Conference of Teamsters and Ohio Conference of Teamsters Health and Welfare Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Contribution made in Health and Welfare Plan | 17,000 | 13,400 | 13,200 | ||
Central States, Southeast and Southwest Areas Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Contribution made in Health and Welfare Plan | $ 13,100 | 12,300 | 13,500 | ||
Collective bargaining arrangement description | The Company is party to four CBAs that require contributions to the Central States Plan with expiration dates ranging from January 2025 to April 2026. These CBAs cover warehouse personnel and drivers in Grand Rapids, Michigan and Bellefontaine and Lima, Ohio. | ||||
Central States, Southeast and Southwest Areas Pension Plan [Member] | Maximum [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage representing contribution funded to plan total contribution | 5% | ||||
Retiree Medical Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Increase (Decrease) in obligations | $ 6,600 | ||||
Net periodic benefit (income) expense | (2,674) | $ (452) | $ 643 | ||
2024 | $ 1,300 | ||||
Spartan Nash Medical Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Payment to retired participants | $ 1,300 | $ 2,000 | |||
Net periodic benefit (income) expense | $ 300 | $ 700 | |||
Postretirement Health [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan employees minimum period of service | 10 years |
Associate Retirement Plans - Sc
Associate Retirement Plans - Schedule of Benefit Obligations, Pension & Other Long-Term Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Projected/Accumulated benefit obligation: | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Expense | Interest Expense | Interest Expense |
Retiree Medical Plan [Member] | |||
Projected/Accumulated benefit obligation: | |||
Balance at beginning of year | $ 2,412 | $ 11,031 | |
Service cost | 76 | $ 187 | |
Interest cost | 85 | 185 | 226 |
Actuarial (gain) loss | 23 | 30 | |
Plan amendment | (6,614) | ||
Benefits paid | (1,284) | (2,296) | |
Balance at end of year | 1,236 | 2,412 | $ 11,031 |
Fair value of plan assets: | |||
Company contributions | 1,284 | 2,296 | |
Benefits paid | (1,284) | (2,296) | |
Funded (unfunded) status | (1,236) | (2,412) | |
Components of net amount recognized in financial position: | |||
Current liabilities | (1,236) | (1,270) | |
Noncurrent liabilities | (1,142) | ||
Net asset (liability) | (1,236) | (2,412) | |
Amounts recognized in AOCI: | |||
Net actuarial loss | 217 | 743 | |
Prior service credit | (1,653) | (4,960) | |
Accumulated other comprehensive income | $ (1,436) | $ (4,217) | |
Weighted average assumptions at measurement date: | |||
Discount rate | 5.65% | 5.34% |
Associate Retirement Plans - Co
Associate Retirement Plans - Components of Net Periodic Pension and Postretirement Benefit Cost (Income) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Expense | Interest Expense | Interest Expense |
Retiree Medical Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 76 | $ 187 | |
Interest cost | $ 85 | 185 | 226 |
Amortization of Prior Service Credit | (3,307) | (1,653) | |
Recognized actuarial net loss | 249 | 200 | 230 |
Net periodic benefit (income) expense | (2,973) | (1,192) | 643 |
Settlement Expenses | 299 | 740 | |
Total net periodic benefit (income) cost | $ (2,674) | $ (452) | $ 643 |
Weighted average assumptions at measurement date: | |||
Discount rate | 5.62% | 2.90% | 2.57% |
Associate Retirement Plans - As
Associate Retirement Plans - Assumed Current Healthcare Cost Trend Rates Used to Determine Net Periodic Benefit Cost (Income) (Detail) | 12 Months Ended |
Dec. 30, 2023 | |
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | |
Post-65 | 7% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income or Loss - Schedule Of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of the year, net of tax | $ 766,068 | $ 782,869 | $ 735,049 | |
Other comprehensive (loss) income, net of tax | (2,183) | 4,434 | 821 | |
Balance at end of the year, net of tax | 778,182 | 766,068 | 782,869 | |
Total accumulated other comprehensive income (loss) | 796 | 2,979 | (1,455) | |
Interest rate swap | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive income before reclassifications | 1,419 | 0 | 0 | |
Income tax expense | (332) | 0 | 0 | |
Other comprehensive income (loss), net of tax, before reclassifications | 1,087 | 0 | 0 | |
Reclassification into net earnings | [1] | (1,832) | 0 | 0 |
Income tax benefit (expense) | [2] | 429 | 0 | 0 |
Amounts reclassified out of AOCI, net of tax | (1,403) | 0 | 0 | |
Other comprehensive (loss) income, net of tax | (316) | 0 | 0 | |
Total accumulated other comprehensive income (loss) | (316) | |||
Postretirement benefit plans | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive income before reclassifications | 203 | 6,576 | 837 | |
Income tax expense | (51) | (1,614) | (203) | |
Other comprehensive income (loss), net of tax, before reclassifications | 152 | 4,962 | 634 | |
Reclassification into net earnings | [3] | (2,677) | (701) | 250 |
Income tax benefit (expense) | [2] | 658 | 173 | (63) |
Amounts reclassified out of AOCI, net of tax | (2,019) | (528) | 187 | |
Other comprehensive (loss) income, net of tax | (1,867) | 4,434 | 821 | |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of the year, net of tax | 2,979 | (1,455) | (2,276) | |
Other comprehensive (loss) income, net of tax | (2,183) | 4,434 | 821 | |
Balance at end of the year, net of tax | 796 | 2,979 | (1,455) | |
Accumulated Other Comprehensive Income (Loss) [Member] | Interest rate swap | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of the year, net of tax | 0 | 0 | 0 | |
Balance at end of the year, net of tax | (316) | 0 | 0 | |
Accumulated Other Comprehensive Income (Loss) [Member] | Postretirement benefit plans | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of the year, net of tax | 2,979 | (1,455) | (2,276) | |
Balance at end of the year, net of tax | $ 1,112 | $ 2,979 | $ (1,455) | |
[1] Reclassified from AOCI into Interest expense. Reclassified from AOCI into Income tax expense (benefit). Reclassified from AOCI into Other, net, or Selling, general and administrative expense. Amounts include amortization of net actuarial loss, amortization of prior service credit, and settlement expense totaling $ 0.4 million and $ 0.7 million in 2023 and 2022, respectively. There was no settlement expense in 2021. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income or Loss - Schedule Of Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Statement of Comprehensive Income [Abstract] | |||
Amortization of net actuarial loss, prior service cost and settlement expense | $ 0.4 | $ 0.7 | $ 0 |
Income Tax - Summary of Income
Income Tax - Summary of Income Tax Provision for Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Current income tax expense: | |||
Federal | $ 6,698 | $ 8,585 | $ 5,436 |
State | 2,961 | 2,397 | 1,867 |
Total current income tax expense | 9,659 | 10,982 | 7,303 |
Deferred income tax expense: | |||
Federal | 6,546 | 46 | 14,877 |
State | 1,683 | 1,369 | 2,726 |
Total deferred income tax expense | 8,229 | 1,415 | 17,603 |
Total income tax expense | $ 17,888 | $ 12,397 | $ 24,906 |
Income Tax - Reconciliation of
Income Tax - Reconciliation of Statutory Federal Rate to Effective Rate (Detail) | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Federal statutory income tax rate | 21% | 21% | 21% |
Stock compensation | (0.90%) | (2.80%) | 0% |
Non-deductible expenses | 3.40% | 5.50% | 1.70% |
Change in tax contingencies | (1.30%) | (0.10%) | 0% |
Charitable product donations | (0.20%) | (0.30%) | (0.10%) |
Other, net | (0.30%) | 0.10% | (0.30%) |
State taxes, net of federal income tax benefit | 5.30% | 6.70% | 3.80% |
Tax credits | (1.50%) | (3.70%) | (0.90%) |
Effective income tax rate | 25.50% | 26.40% | 25.20% |
Income Tax - Summary of Deferre
Income Tax - Summary of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 | |
Deferred tax assets: | |||
Employee benefits | $ 21,074 | $ 27,387 | |
Accrued workers' compensation | 2,082 | 2,126 | |
Allowance for credit losses | 1,500 | 1,823 | |
Restructuring | 601 | 655 | |
Deferred revenue | 987 | 1,266 | |
Stock warrant | 31 | 626 | |
Lease liabilities | 82,970 | 82,284 | |
Accrued insurance | 1,045 | 985 | |
State net operating loss carryforwards (a) | [1] | 5,507 | 5,608 |
All other | 8,538 | 4,433 | |
Total deferred tax assets | 124,335 | 127,193 | |
Valuation allowances | (399) | (357) | |
Net deferred tax assets | 123,936 | 126,836 | |
Deferred tax liabilities: | |||
Property and equipment | 49,038 | 48,251 | |
Lease assets | 74,472 | 73,986 | |
Inventory | 31,618 | 33,290 | |
Goodwill | 36,936 | 33,606 | |
Intangible assets | 2,200 | 1,195 | |
All other | 3,576 | 2,801 | |
Total deferred tax liabilities | 197,840 | 193,129 | |
Net deferred tax liability | $ 73,904 | $ 66,293 | |
[1] As of December 30, 2023, the Company’s state net operating loss carryforwards in various taxing jurisdictions expire in tax years 2024 through 2043 if not utilized . |
Income Tax - Summary of Defer_2
Income Tax - Summary of Deferred Tax Assets and Liabilities (Parenthetical) (Detail) | 12 Months Ended |
Dec. 30, 2023 | |
Income Tax Expense Benefit Continuing Operations [Line Items] | |
Federal credit carryforwards expire year | 2043 |
State and Local Jurisdiction | |
Income Tax Expense Benefit Continuing Operations [Line Items] | |
Net operating losses, expiration date, description | expire in tax years 2024 through 2043 if not utilized |
Income Tax - Reconciliation o_2
Income Tax - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of year | $ 1,165 | $ 1,220 |
Lapsed statutes of limitations | (185) | (55) |
Effectively settled | (836) | 0 |
Balance at end of year | $ 144 | $ 1,165 |
Income Tax - Additional Informa
Income Tax - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2024 | Dec. 30, 2023 | Dec. 31, 2022 | |
Income Tax Expense Benefit Continuing Operations [Line Items] | |||
Lapsed statutes of limitations | $ (185) | $ (55) | |
Uncertain tax positions included in unrecognized tax benefits | $ 100 | ||
Forecast [Member] | |||
Income Tax Expense Benefit Continuing Operations [Line Items] | |||
Impact of unrecognized tax benefits settlement on effective tax rate | $ 100 |
Share-Based Payments - Addition
Share-Based Payments - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | Oct. 07, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Intrinsic value of share vested | $ 11.7 | $ 14.3 | $ 7.3 | ||
Tax deductions related to the exercise of stock option and vesting of restricted stock | $ 12.2 | $ 14.7 | $ 7.7 | ||
Stock purchase plan | 300,000 | ||||
Annual bonus for common stock, cash value percentage | 120% | ||||
Share based payment share restriction period | 24 months | ||||
Shares issued | 15,778,000 | ||||
Stock warrant, outstanding and nonvested | 3,262,357 | 3,479,849 | 3,914,833 | 4,349,817 | |
Unrecognized cost related to non-vested warrants | $ 17 | ||||
Non-vested warrants expensed as vesting conditions are satisfied over the remaining term | 3 years 9 months 18 days | ||||
Warrant shares, vested and exercisable | 2,174,915,000 | ||||
Non-vested warrant shares, intrinsic value | $ 17 | ||||
Vested warrant shares, intrinsic value | $ 11.4 | ||||
NV Investment Holdings [Member] | Commercial Agreement [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Warrant to acquire number of securities, common stock shares | 5,437,272 | ||||
Exercise price | $ 17.7257 | ||||
Warrants commercial supply agreement | $ 200 | ||||
Right to purchase warrant, expiration date | Oct. 07, 2027 | ||||
NV Investment Holdings [Member] | Commercial Agreement [Member] | Warrants One [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Warrant to purchase number of securities, common stock shares vested | 1,087,455 | ||||
Warrants grant date fair value per share | $ 5.51 | ||||
NV Investment Holdings [Member] | Commercial Agreement [Member] | Warrants Two [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Warrants grant date fair value per share | $ 5.33 | ||||
Stock warrant, outstanding and nonvested | 4,349,817 | ||||
Restricted Stock Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock option award period | 3 years | 4 years | |||
Unrecognized compensation cost | $ 9 | ||||
Unrecognized compensation cost, weighted average period of recognition | 1 year 8 months 12 days | ||||
Restricted Stock Awards [Member] | Board of Director [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock option award period | 1 year | ||||
Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost | $ 5.8 | ||||
Unrecognized compensation cost, weighted average period of recognition | 2 years | ||||
Performance Shares [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of shares, outstanding and issuable shares | 200% | ||||
Performance Shares [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of shares, outstanding and issuable shares | 0% | ||||
2020 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares unissued | 470,810,000 | ||||
Associate Stock Purchase Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock purchase plan | 300,000 | ||||
Purchase price of common stock | 85% | ||||
Shares issued under associate stock purchase plan | 62,540,000 |
Share-Based Payments - Summary
Share-Based Payments - Summary of Restricted Stock Activity (Detail) - Restricted Stock Awards [Member] - $ / shares | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted Stock Awards, Outstanding and nonvested, Beginning balance | 863,063 | 1,031,837 | 973,948 |
Restricted Stock Awards, Granted | 447,910 | 391,334 | 562,653 |
Restricted Stock Awards, Vested | (432,549) | (470,145) | (388,403) |
Restricted Stock Awards, Forfeited | (58,967) | (89,963) | (116,361) |
Restricted Stock Awards, Outstanding and nonvested, Ending balance | 819,457 | 863,063 | 1,031,837 |
Weighted Average Grant-Date Fair Value, Outstanding and nonvested, Beginning balance | $ 22.05 | $ 17.56 | $ 17.72 |
Weighted Average Grant-Date Fair Value, Granted | 26.95 | 28.63 | 18.96 |
Weighted Average Grant-Date Fair Value, Vested | 21.16 | 17.92 | 19.81 |
Weighted Average Grant-Date Fair Value, Forfeited | 25.96 | 20.71 | 18.19 |
Weighted Average Grant-Date Fair Value, Outstanding and nonvested, ending balance | $ 24.92 | $ 22.05 | $ 17.56 |
Share-Based Payments - Summar_2
Share-Based Payments - Summary of Performance Share Units (Details) - Performance Shares [Member] shares in Thousands | 12 Months Ended |
Dec. 30, 2023 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Nonvested, Number of Shares, Beginning Balance | shares | 0 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Option, Nonvested, Weighted Average Exercise Price, Beginning Balance | $ / shares | $ 0 |
Performance Share Units, Granted | shares | 299,840 |
Performance Share Units, Forfeited | shares | 9,530 |
Weighted Average Grant-Date Fair Value, Granted | $ / shares | $ 27.01 |
Weighted Average Grant-Date Fair Value, Forfeited | $ / shares | 27.24 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Option, Nonvested, Weighted Average Exercise Price, Ending Balance | $ / shares | $ 27 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Nonvested, Number of Shares, Ending Balance | shares | 290,310 |
Share-Based Payments - Summar_3
Share-Based Payments - Summary of Allocation of Stock-Based Compensation Expense in Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Share-Based Payment Arrangement, Additional Disclosure [Abstract] | |||
Restricted stock | $ 10,220 | $ 8,308 | $ 6,868 |
Performance share unit expense | 2,048 | 0 | 0 |
Tax benefits | (4,199) | (4,094) | (1,744) |
Stock-based compensation stock expense, net of tax | $ 8,069 | $ 4,214 | $ 5,124 |
Share-Based Payments - Summar_4
Share-Based Payments - Summary of Stock Warrant Activity (Detail) - shares | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Share-Based Payment Arrangement [Abstract] | |||
Stock warrant, outstanding and nonvested | 3,479,849 | 3,914,833 | 4,349,817 |
Vested | (217,492) | (434,984) | (434,984) |
Stock warrant, outstanding and nonvested | 3,262,357 | 3,479,849 | 3,914,833 |
Share-Based Payments - Summar_5
Share-Based Payments - Summary of Stock-Based Payment Expense Recognized Included as a Reduction of Net Sales in Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Share-Based Payment Arrangement, Additional Disclosure [Abstract] | |||
Warrant expense | $ 1,559 | $ 2,158 | $ 1,958 |
Tax benefits | (133) | (203) | (152) |
Warrant expense, net of tax | $ 1,426 | $ 1,955 | $ 1,806 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Schedule of Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Non-cash investing activities: | |||
Capital expenditures included in accounts payable | $ 28,102 | $ 25,701 | $ 15,277 |
Other supplemental cash flow information: | |||
Cash paid for interest | 37,939 | 18,431 | 12,245 |
Income tax payments (refunds) | $ 11,172 | $ 6,513 | $ (10,110) |
Reporting Segment Information -
Reporting Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 30, 2023 Segment | |
Segment Reporting [Abstract] | |
Number of reportable segment | 2 |
Reporting Segment Information_2
Reporting Segment Information - Schedule of Segment Reporting Information, by Operating Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 9,729,219 | $ 9,643,100 | $ 8,931,039 |
Acquisition and integration | 3,416 | 343 | 708 |
Restructuring and asset impairment, net | 9,190 | 805 | 2,886 |
Depreciation and amortization | 98,639 | 94,180 | 92,711 |
Operating earnings (loss) | 106,712 | 68,544 | 112,200 |
Capital expenditures | 120,330 | 97,280 | 79,427 |
Total Assets | 2,355,575 | 2,306,561 | |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 9,729,219 | 9,643,100 | 8,931,039 |
Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,190,770 | 1,205,425 | 1,096,474 |
Wholesale [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 6,919,217 | 6,845,236 | 6,349,753 |
Acquisition and integration | 216 | 239 | 0 |
Restructuring and asset impairment, net | 8,548 | (2,363) | 427 |
Depreciation and amortization | 51,535 | 47,601 | 46,487 |
Operating earnings (loss) | 87,701 | 55,137 | 45,229 |
Capital expenditures | 75,509 | 52,394 | 46,020 |
Total Assets | 1,576,182 | 1,525,760 | |
Wholesale [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 6,919,217 | 6,845,236 | 6,349,753 |
Wholesale [Member] | Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,189,438 | 1,204,497 | 1,095,647 |
Retail [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,810,002 | 2,797,864 | 2,581,286 |
Acquisition and integration | 3,200 | 104 | 708 |
Restructuring and asset impairment, net | 642 | 3,168 | 2,459 |
Depreciation and amortization | 47,104 | 46,579 | 46,224 |
Operating earnings (loss) | 19,011 | 13,407 | 66,971 |
Capital expenditures | 44,821 | 44,886 | 33,407 |
Total Assets | 779,393 | 780,801 | |
Retail [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,810,002 | 2,797,864 | 2,581,286 |
Retail [Member] | Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 1,332 | $ 928 | $ 827 |