Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 28, 2019 | Feb. 25, 2020 | Jul. 14, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 28, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SPTN | ||
Entity Registrant Name | SPARTANNASH COMPANY | ||
Entity Central Index Key | 0000877422 | ||
Current Fiscal Year End Date | --12-28 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 36,348,831 | ||
Entity Public Float | $ 410,841,351 | ||
Entity Shell Company | false | ||
Entity Well Known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
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 | ||
Documents Incorporated by Reference | Part III, Items 10, 11, 12, 13 and 14 Proxy Statement for Annual Meeting to be held May 20, 2020 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Current assets | ||
Cash and cash equivalents | $ 24,172 | $ 18,585 |
Accounts and notes receivable, net | 345,320 | 346,260 |
Inventories, net | 537,212 | 553,799 |
Prepaid expenses and other current assets | 58,775 | 73,798 |
Property and equipment held for sale | 31,203 | 8,654 |
Total current assets | 996,682 | 1,001,096 |
Property and equipment, net | 615,816 | 579,060 |
Goodwill | 181,035 | 178,648 |
Intangible assets, net | 130,434 | 128,926 |
Operating lease assets | 268,982 | |
Other assets, net | 82,660 | 84,182 |
Total assets | 2,275,609 | 1,971,912 |
Current liabilities | ||
Accounts payable | 405,370 | 357,802 |
Accrued payroll and benefits | 59,680 | 57,180 |
Other accrued expenses | 51,295 | 43,206 |
Current portion of operating lease liabilities | 42,440 | |
Current portion of long-term debt and finance lease liabilities | 6,349 | 18,263 |
Total current liabilities | 565,134 | 476,451 |
Long-term liabilities | ||
Deferred income taxes | 43,111 | 49,254 |
Operating lease liabilities | 267,350 | |
Other long-term liabilities | 30,272 | 50,463 |
Long-term debt and finance lease liabilities | 682,204 | 679,797 |
Total long-term liabilities | 1,022,937 | 779,514 |
Commitments and contingencies (Note 9) | ||
Shareholders’ equity | ||
Common stock, voting, no par value; 100,000 shares authorized; 36,351 and 35,952 shares outstanding | 490,233 | 484,064 |
Preferred stock, no par value, 10,000 shares authorized; no shares outstanding | ||
Accumulated other comprehensive loss | (1,600) | (15,759) |
Retained earnings | 198,905 | 247,642 |
Total shareholders’ equity | 687,538 | 715,947 |
Total liabilities and shareholders’ equity | $ 2,275,609 | $ 1,971,912 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 28, 2019 | Dec. 29, 2018 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares outstanding | 36,351,000 | 35,952,000 |
Preferred stock, par value | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 8,536,065 | $ 8,064,552 | $ 7,963,799 |
Cost of sales | 7,292,235 | 6,954,146 | 6,818,890 |
Gross profit | 1,243,830 | 1,110,406 | 1,144,909 |
Operating expenses | |||
Selling, general and administrative | 1,172,401 | 997,411 | 1,015,024 |
Merger/acquisition and integration | 1,437 | 4,937 | 8,101 |
Goodwill impairment | 189,027 | ||
Restructuring, asset impairment and other charges | 13,050 | 37,546 | 39,432 |
Total operating expenses | 1,186,888 | 1,039,894 | 1,251,584 |
Operating earnings (loss) | 56,942 | 70,512 | (106,675) |
Other (income) and expenses | |||
Interest expense | 34,548 | 30,483 | 25,343 |
Loss on debt extinguishment | 329 | 413 | |
Postretirement benefit expense (income) | 19,803 | 159 | (359) |
Other, net | (1,313) | (828) | (428) |
Total other expenses, net | 53,367 | 29,814 | 24,969 |
Earnings (loss) before income taxes and discontinued operations | 3,575 | 40,698 | (131,644) |
Income tax (benefit) expense | (2,342) | 6,907 | (79,027) |
Earnings (loss) from continuing operations | 5,917 | 33,791 | (52,617) |
Loss from discontinued operations, net of taxes | (175) | (219) | (228) |
Net earnings (loss) | $ 5,742 | $ 33,572 | $ (52,845) |
Basic earnings (loss) per share: | |||
Earnings (loss) from continuing operations | $ 0.16 | $ 0.94 | $ (1.41) |
Loss from discontinued operations | (0.01) | ||
Net earnings (loss) | 0.16 | 0.93 | (1.41) |
Diluted earnings (loss) per share: | |||
Earnings (loss) from continuing operations | 0.16 | 0.94 | (1.41) |
Loss from discontinued operations | (0.01) | ||
Net earnings (loss) | $ 0.16 | $ 0.93 | $ (1.41) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net earnings (loss) | $ 5,742 | $ 33,572 | $ (52,845) |
Other comprehensive income (loss), before tax | |||
Pension and postretirement liability adjustment | 18,699 | (822) | (1,649) |
Income tax (expense) benefit related to items of other comprehensive income | (4,540) | 199 | 632 |
Total other comprehensive income (loss), after tax | 14,159 | (623) | (1,017) |
Comprehensive income (loss) | $ 19,901 | $ 32,949 | $ (53,862) |
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, value at Dec. 31, 2016 | $ 825,407 | $ 521,984 | $ (11,437) | $ 314,860 |
Balance, shares at Dec. 31, 2016 | 37,539 | |||
Net (loss) earnings | (52,845) | (52,845) | ||
Other comprehensive income (loss) | (1,017) | (1,017) | ||
Reclassification of stranded tax effects in AOCI | (2,682) | 2,682 | ||
Dividends | (24,704) | (24,704) | ||
Share repurchase, value | (34,995) | $ (34,995) | ||
Share repurchase, shares | (1,367) | |||
Stock-based employee compensation | 9,611 | $ 9,611 | ||
Issuance of common stock on stock option exercises, stock bonus plan and associate stock purchase plan | 3,697 | $ 3,697 | ||
Issuance of common stock and related tax benefit on stock option exercises, stock bonus plan and associate stock purchase plan, shares | 172 | |||
Issuances of restricted stock, shares | 296 | |||
Cancellations of stock-based awards, value | (3,204) | $ (3,204) | ||
Cancellations of stock-based awards, shares | (174) | |||
Balance, value at Dec. 30, 2017 | 721,950 | $ 497,093 | (15,136) | 239,993 |
Balance, shares at Dec. 30, 2017 | 36,466 | |||
Net (loss) earnings | 33,572 | 33,572 | ||
Other comprehensive income (loss) | (623) | (623) | ||
Dividends | (25,923) | (25,923) | ||
Share repurchase, value | (20,000) | $ (20,000) | ||
Share repurchase, shares | (952) | |||
Stock-based employee compensation | 7,646 | $ 7,646 | ||
Issuance of common stock on stock option exercises, stock bonus plan and associate stock purchase plan | 956 | $ 956 | ||
Issuance of common stock and related tax benefit on stock option exercises, stock bonus plan and associate stock purchase plan, shares | 54 | |||
Issuances of restricted stock, shares | 483 | |||
Cancellations of stock-based awards, value | (1,631) | $ (1,631) | ||
Cancellations of stock-based awards, shares | (99) | |||
Balance, value at Dec. 29, 2018 | $ 715,947 | $ 484,064 | (15,759) | 247,642 |
Balance, shares at Dec. 29, 2018 | 35,952 | 35,952 | ||
Impact of adoption of ASU 2016-02 | (ASU 2016-02) [Member] | $ (26,863) | (26,863) | ||
Net (loss) earnings | 5,742 | 5,742 | ||
Other comprehensive income (loss) | 14,159 | 14,159 | ||
Dividends | (27,616) | (27,616) | ||
Stock-based employee compensation | 7,312 | $ 7,312 | ||
Issuance of common stock on stock option exercises, stock bonus plan and associate stock purchase plan | 639 | $ 639 | ||
Issuance of common stock and related tax benefit on stock option exercises, stock bonus plan and associate stock purchase plan, shares | 46 | |||
Issuances of restricted stock, shares | 488 | |||
Cancellations of stock-based awards, value | (1,782) | $ (1,782) | ||
Cancellations of stock-based awards, shares | (135) | |||
Balance, value at Dec. 28, 2019 | $ 687,538 | $ 490,233 | $ (1,600) | $ 198,905 |
Balance, shares at Dec. 28, 2019 | 36,351 | 36,351 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Statement Of Stockholders Equity [Abstract] | |||
Dividends per share | $ 0.76 | $ 0.72 | $ 0.66 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Cash flows from operating activities | |||
Net earnings (loss) | $ 5,742 | $ 33,572 | $ (52,845) |
Loss from discontinued operations, net of tax | 175 | 219 | 228 |
Earnings (loss) from continuing operations | 5,917 | 33,791 | (52,617) |
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | |||
Non-cash restructuring, goodwill/asset impairment and other charges | 18,653 | 37,793 | 227,847 |
Loss on debt extinguishment | 329 | 413 | |
Depreciation and amortization | 90,597 | 84,190 | 84,390 |
Non-cash rent | (7,276) | (962) | (1,040) |
LIFO expense | 5,892 | 4,601 | 2,898 |
Pension settlement expense | 18,244 | ||
Postretirement benefits expense | 2,972 | 63 | 1,347 |
Deferred taxes on income | (2,260) | 7,407 | (79,921) |
Stock-based compensation expense | 7,312 | 7,646 | 9,611 |
Postretirement benefit plan contributions | (623) | (1,889) | (501) |
Gain on disposals of assets | (6,458) | (106) | (160) |
Changes in operating assets and liabilities: | |||
Accounts receivable | 2,025 | (1,177) | (25,276) |
Inventories | 40,971 | 38,213 | (48,478) |
Prepaid expenses and other assets | (15,752) | (6,467) | (8,418) |
Accounts payable | 14,941 | (18,358) | (24,477) |
Accrued payroll and benefits | (3,305) | (8,295) | (17,253) |
Other accrued expenses and other liabilities | 8,013 | (4,792) | (15,522) |
Net cash provided by operating activities | 180,192 | 171,658 | 52,843 |
Cash flows from investing activities | |||
Purchases of property and equipment | (74,815) | (71,495) | (70,906) |
Net proceeds from the sale of assets | 18,760 | 6,901 | 4,024 |
Acquisitions, net of cash acquired | (86,659) | (226,939) | |
Loans to customers | (3,535) | (1,123) | (10,328) |
Payments from customers on loans | 4,074 | 2,111 | 3,948 |
Other | (997) | (550) | (15,192) |
Net cash used in investing activities | (143,172) | (64,156) | (315,393) |
Cash flows from financing activities | |||
Proceeds from senior secured credit facility | 1,217,498 | 1,016,918 | 1,461,902 |
Payments on senior secured credit facility | (1,177,942) | (1,123,557) | (1,140,491) |
Proceeds from other long-term debt | 5,800 | 60,000 | |
Repayment of other long-term debt and finance lease liabilities | (68,460) | (8,175) | (7,456) |
Financing fees paid | (805) | (2,217) | (256) |
Proceeds from resolution of acquisition contingencies | 15,000 | ||
Share repurchase | (20,000) | (34,995) | |
Net payments related to stock-based award activities | (1,782) | (1,630) | (3,204) |
Proceeds from exercise of stock options | 181 | 284 | 3,207 |
Dividends paid | (20,709) | (25,923) | (24,704) |
Net cash (used in) provided by financing activities | (31,219) | (104,300) | 254,003 |
Cash flows from discontinued operations | |||
Net cash used in operating activities | (214) | (284) | (137) |
Net cash used in discontinued operations | (214) | (284) | (137) |
Net increase (decrease) in cash and cash equivalents | 5,587 | 2,918 | (8,684) |
Cash and cash equivalents at beginning of year | 18,585 | 15,667 | 24,351 |
Cash and cash equivalents at end of year | $ 24,172 | $ 18,585 | $ 15,667 |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Basis of Presentation | 12 Months Ended |
Dec. 28, 2019 | |
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 ending or ended January 2, 2021 (“2020”), December 28, 2019 ("2019" or “current year”), December 29, 2018 (“2018” or “prior year”) and December 30, 2017 (“2017”), all of which include 52 weeks, with the exception of 2020, which includes 53 weeks. All fiscal quarters are 12 weeks, except for the Company’s first quarter, which is 16 weeks. The fourth quarter of 53-week years include 13 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, 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 the principal (i.e., report revenues on a gross basis) or agent (i.e., report 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, flex funds, 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 for all non-production operations includes purchase costs, in-bound freight, physical inventory adjustments, markdowns and promotional allowances and excludes warehousing costs, depreciation and other administrative expenses. For the Company’s food processing operations, cost of sales includes direct product and production costs, inbound freight, purchasing and receiving costs, utilities, depreciation, and other indirect production costs and excludes out-bound freight and other administrative expenses. As a result, 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 generally 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 distribution segments include shipping and handling costs in the selling, general and administrative section of operating expenses within the consolidated statements of operations. Cash and Cash Equivalents: Cash and cash equivalents consist 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 shown net of allowances for credit losses of $3.0 million and $4.3 million as of December 28, 2019 and December 29, 2018, respectively. The Company evaluates the adequacy of its allowances by analyzing the aging of receivables, customer financial condition, historical collection experience, the value of collateral and other economic and industry factors. Actual collections may differ from historical experience, and if economic, business or customer conditions deteriorate significantly, adjustments to these reserves may be required. When the Company becomes aware of factors that indicate a change in a specific customer’s ability to meet its financial obligations, the Company records a specific reserve for credit losses. Operating results include bad debt expense of $1.5 million, $3.4 million and $1.5 million for 2019, 2018 and 2017, respectively. Inventory Valuation: Inventories are valued at the lower of cost or market. Approximately 82.8% and 88.9% of the Company’s inventories were valued on the last-in, first-out (LIFO) method at December 28, 2019 and December 29, 2018, respectively. If replacement cost had been used, inventories would have been $60.9 million and $55.1 million higher at December 28, 2019 and December 29, 2018, respectively. The replacement cost method utilizes the most current unit purchase cost to calculate the value of inventories. During 2019, 2018 and 2017, certain inventory quantities were reduced. The reductions resulted in liquidation of LIFO inventory carried at lower costs prevailing in prior years, the effect of which decreased the LIFO provision by $1.5 million, $1.1 million and $0.2 million in 2019, 2018 and 2017, respectively. The Company accounts for its Food Distribution and Military 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 with cost of sales and gross margin calculated 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 evaluates inventory shortages throughout the year based on actual physical counts in its facilities. The Company records allowances for inventory shortages based on the results of recent physical counts to provide for estimated shortages from the last physical count to the financial statement date. 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 reporting segment. Measuring the fair value of reporting units is a Level 3 measurement under the fair value hierarchy. See Note 8, Fair Value Measurements, for a discussion of fair value levels. Intangible assets primarily consist of trade names, customer relationships, favorable lease agreements, 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: favorable leases (related lease terms), prescription lists and customer relationships (period of expected benefit reflecting the pattern in which the economic benefits are consumed), non-compete agreements and franchise fees (length of agreements), and trade names with definite lives (expected life of the assets). Indefinite-lived trade names are not amortized but are tested at least annually for impairment, and liquor licenses are also not amortized as they have indefinite lives. 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 amounted to $35.2 million and $33.5 million as of December 28, 2019 and December 29, 2018, 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 obligations 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 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 economy, real estate market conditions and inflation. The Company calculates operating and finance lease 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. Prior to the adoption of ASC 842, these reserves also included the future minimum lease payments associated with these properties. 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 one to 9 years. Adjustments to closed property reserves primarily relate to actual exit costs differing from original estimates. 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 obligations” in the consolidated balance sheets. Insurance Reserves: SpartanNash is self-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 basis, the Company’s exposure is up to $0.5 million for workers’ compensation and general liability, $1.0 million for automobile liability and $0.5 million for healthcare per covered life per year. A summary of changes in the Company’s self-insurance liability is as follows: (In thousands) 2019 2018 2017 Balance at beginning of year $ 14,291 $ 15,155 $ 14,730 Expenses 69,253 49,532 54,748 Acquisitions 1,894 — — Claim payments, net of employee contributions (68,658 ) (50,396 ) (54,323 ) Balance at end of year $ 16,780 $ 14,291 $ 15,155 The current portion of the self-insurance liability was $10.7 million and $8.6 million as of December 28, 2019 and December 29, 2018, respectively, and is included in “Other accrued expenses” in the consolidated balance sheets. The long-term portion was $6.1 million and $5.7 million as of December 28, 2019 and December 29, 2018, 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. Participating securities include non-vested shares of restricted stock in which the participants have non-forfeitable rights to dividends during the performance period. Diluted EPS includes the effects of stock options. The following table sets forth the computation of basic and diluted EPS for continuing operations: (In thousands, except per share amounts) 2019 2018 2017 Numerator: Earnings (loss) from continuing operations $ 5,917 $ 33,791 $ (52,617 ) Adjustment for (earnings) loss attributable to participating securities (149 ) (746 ) 908 Earnings (loss) from continuing operations used in calculating earnings per share $ 5,768 $ 33,045 $ (51,709 ) Denominator: Weighted average shares outstanding, including participating securities 36,271 36,012 37,419 Adjustment for participating securities (912 ) (795 ) (646 ) Shares used in calculating basic earnings per share 35,359 35,217 36,773 Effect of dilutive stock options — 10 — Shares used in calculating diluted earnings per share 35,359 35,227 36,773 Basic (loss) earnings per share from continuing operations $ 0.16 $ 0.94 $ (1.41 ) Diluted (loss) earnings per share from continuing operations $ 0.16 $ 0.94 $ (1.41 ) Weighted average shares issuable upon the exercise of stock options that were not included in the EPS calculations because they were anti-dilutive were 75,159 for 2017. There were no anti-dilutive stock options in 2019 or 2018. Stock-Based 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 restricted stock units. The value of the portion of awards expected to vest is recognized as expense over the requisite service period. 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 28, 2019 and December 29, 2018, 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 $39.3 million, $40.9 million and $43.4 million in 2019, 2018 and 2017, respectively. Accumulated Other Comprehensive Income (Loss)(“AOCI”): The Company reports comprehensive income (loss) that includes net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to expenses, gains and losses that are not included in net earnings, such as pension and other postretirement liability adjustments, but rather are recorded directly to shareholders’ equity. These amounts are also presented in the consolidated statements of comprehensive income. The Company’s pension plan was terminated and benefit obligations were satisfied in 2019, and as of December 28, 2019 AOCI relates to the Company’s other postretirement plans. Discontinued operations: Certain of the Company’s Food Distribution and Retail operations are classified as discontinued operations. Results of discontinued operations are excluded from the accompanying notes to the consolidated financial statements for all periods presented, unless otherwise noted. Results of discontinued operations reported on the consolidated statements of operations are reported net of tax. Adoption of New Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases.” The FASB subsequently issued ASUs 2018-01, 2018-10, 2018-11, and 2019-01, which include clarifications and provide various practical expedients and transition options related to ASU 2016-02. ASU 2016-02 provides guidance for lease accounting and stipulates that lessees need to recognize a right-of-use asset and a lease liability for substantially all leases (other than leases that meet the definition of a short-term lease). The liability is equal to the present value of future rent payments. Treatment in the consolidated statements of operations is similar to the previous treatment of operating and capital leases. In the first quarter of 2019, the Company adopted this standard using the alternative transition method provided in ASU 2018-11, Leases (Topic 842): Targeted Improvements The adoption of the new standard resulted in the recognition of operating lease assets and liabilities of $241.8 million and $292.3 million, respectively, as of the beginning of 2019. The adoption of the standard also resulted in a transition adjustment to beginning of the year retained earnings of $26.9 million (net of deferred tax impact of $8.5 million). The transition adjustment relates to impairment of right of use assets included in previously impaired asset groups and the impact of hindsight on the evaluation of lease term. Remaining differences between lease assets and liabilities relate to the derecognition of lease-related liabilities and assets recorded under ASC 840, which were included in beginning lease liabilities or assets under ASC 842. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers – Topic 606” (“ASC 606”). The new guidance affects any reporting organization that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. As of the beginning of 2018, the Company adopted ASC 606 and all subsequent ASUs that modified ASC 606. From a principal versus agent perspective, the Company determined that certain contracts in the Food Distribution segment that were historically reported on a gross basis are required to be reported on a net basis under the updated guidance, resulting in a corresponding decrease to both net sales and cost of sales from what would have been recognized under previous guidance. The implementation of the guidance had no impact on gross profit, net earnings, the balance sheet, cash flows, equity, or the timing of revenue recognition in current or prior periods. Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments”. ASU 2016-13 changes the impairment model for most financial assets and certain other instruments. Entities will be required to use a forward-looking “expected loss” model that will replace the current “incurred loss” model, which will generally result in the earlier recognition of credit losses. The Company is required to adopt this update in the first quarter of fiscal 2020. The Company has established revised processes and controls to estimate expected losses for trade and other receivables in accordance with the new standard. The standard is expected to result in an increase to the Company’s allowances for trade and other receivables, including the establishment of incremental reserves for pooled receivables as well as additional reserves for specific customers where credit losses are expected. Transition adjustments will be recorded to retained earnings upon adoption In August 2018, the FASB issued ASU 2018-14, “Compensation—Retirement Benefits—Defined Benefit Plans—General: Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans.” The amendments in this ASU remove disclosures that are no longer considered to be cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. The amendments in ASU 2018-14 are effective for fiscal years ending after December 15, 2020 and will be applied on a retrospective basis to all periods presented. The adoption of this guidance is not expected to have a significant effect on the Company’s financial statements. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 28, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Note 2 – Acquisitions On December 31, 2018, the Company acquired all of the outstanding shares of Martin’s Super Markets, Inc. (“Martin’s”) for $86.7 million, net of $7.8 million of cash acquired. Acquired assets consist primarily of property and equipment of $55.0 million, intangible assets of $23.9 million, and working capital. Intangible assets are primarily composed of an indefinite-lived trade name of $20.6 million and pharmacy customer prescription lists of $3.1 million, which are amortized over seven years. The acquired assets and assumed liabilities were recorded at their estimated fair values as of the acquisition date based on preliminary estimates, which were subsequently finalized during the fourth quarter of 2019. No goodwill was recorded related to the acquisition. As of December 28, 2019, the Company has incurred $2.5 million of merger/acquisition and integration costs related to the acquisition, of which $1.3 million was incurred in 2019. The acquisition was funded with proceeds from the Company’s Revolving Credit Facility. Martin’s currently operates 20 stores in Northern Indiana and Southwest Michigan with approximately 3,500 employees. Prior to the acquisition, Martin’s was an independent retailer and customer of the Company’s Food Distribution segment. Subsequent to the acquisition, sales from the Food Distribution segment to Martin’s stores are eliminated. The acquisition expanded the footprint of the Company’s Retail segment into adjacent geographies in northern Indiana and southwestern Michigan. Refer to Note 15 for further information related to current year acquisitions. On January 6, 2017, the Company acquired certain assets and assumed certain liabilities of Caito Foods Service (“Caito”) and Blue Ribbon Transport (“BRT”) for $214.6 million in cash, net of $2.5 million of cash acquired. Acquired assets consist primarily of property and equipment of $76.7 million, intangible assets of $72.9 million, and working capital. Intangible assets are primarily composed of customer relationships, which are amortized over fifteen years, and indefinite lived trade names. In connection with the purchase, the Company provided certain earn-out opportunities if the business achieved certain performance targets. As certain performance targets were not met in the first year after acquisition, the Company was reimbursed $15.0 million of the initial purchase price during 2019 from funds paid into escrow. The excess of the purchase price over the fair value of net assets acquired of $46.3 million was recorded as goodwill in the consolidated balance sheet and allocated to the Food Distribution segment and is deductible for tax purposes. Caito is a supplier of fresh fruits and vegetables to grocery retailers and food service distributors in the Southeast, Midwest and Eastern United States. BRT offers temperature-controlled distribution and logistics services throughout North America. The Company acquired Caito and BRT to strengthen its fresh product offerings to its existing customer base. |
Revenue
Revenue | 12 Months Ended |
Dec. 28, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | Note 3 – Revenue Sources of Revenue 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 certain 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 price 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. 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 (“FDS”) 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 the auspices of 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: 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, the Company is required to bear the risk of inventory loss prior to transfer to the customer, has shared responsibilities in the fulfillment and acceptability of the goods, and to a lesser extent, 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 awards customer loyalty points or sells gift cards and gift certificates; rather, a sale is recognized when the customer loyalty points, gift card or gift certificate are redeemed 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: 52 Weeks Ended December 28, 2019 (In thousands) Food Distribution Military Retail Total Type of products: Center store (a) $ 1,209,436 $ 1,027,661 $ 928,641 $ 3,165,738 Fresh (b) 1,445,902 636,147 900,096 2,982,145 Non-food (c) 1,247,964 501,642 402,450 2,152,056 Fuel — — 148,779 148,779 Other 79,307 6,657 1,383 87,347 Total $ 3,982,609 $ 2,172,107 $ 2,381,349 $ 8,536,065 Type of customers: Individuals $ — $ — $ 2,380,524 $ 2,380,524 Manufacturers, brokers and distributors 179,872 2,065,919 — 2,245,791 Retailers 3,739,316 99,531 — 3,838,847 Other 63,421 6,657 825 70,903 Total $ 3,982,609 $ 2,172,107 $ 2,381,349 $ 8,536,065 52 Weeks Ended December 29, 2018 (In thousands) Food Distribution Military Retail Total Type of products: Center store (a) $ 1,249,374 $ 1,052,462 $ 747,708 $ 3,049,544 Fresh (b) 1,478,142 602,023 688,661 2,768,826 Non-food (c) 1,185,390 506,177 330,342 2,021,909 Fuel — — 138,617 138,617 Other 78,544 6,181 931 85,656 Total $ 3,991,450 $ 2,166,843 $ 1,906,259 $ 8,064,552 Type of customers: Individuals $ — $ — $ 1,905,328 $ 1,905,328 Manufacturers, brokers and distributors 197,128 2,089,765 — 2,286,893 Retailers 3,733,254 70,897 — 3,804,151 Other 61,068 6,181 931 68,180 Total $ 3,991,450 $ 2,166,843 $ 1,906,259 $ 8,064,552 52 Weeks Ended December 30, 2017 (In thousands) Food Distribution Military Retail Total Type of products: Center store (a) $ 1,206,832 $ 1,054,590 $ 792,925 $ 3,054,347 Fresh (b) 1,456,632 577,084 734,564 2,768,280 Non-food (c) 1,085,282 507,394 336,630 1,929,306 Fuel — — 126,673 126,673 Other 79,163 4,954 1,076 85,193 Total $ 3,827,909 $ 2,144,022 $ 1,991,868 $ 7,963,799 Type of customers: Individuals $ — $ — $ 1,990,792 $ 1,990,792 Manufacturers, brokers and distributors 210,004 2,119,601 — 2,329,605 Retailers 3,556,591 19,467 — 3,576,058 Other 61,314 4,954 1,076 67,344 Total $ 3,827,909 $ 2,144,022 $ 1,991,868 $ 7,963,799 (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. 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. In the ordinary course of business, the Company may advance funds to independent retailers which are earned by the retailers primarily through achieving specified purchase volume requirements, as outlined in their supply agreements with the Company, or in limited instances, for remaining a SpartanNash customer for a specified time period. These advances must be repaid if the purchase volume requirements are not met or if the retailer no longer remains a customer for the specified time period. 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 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. Accounts and notes receivable are comprised of the following: December 28, December 30, (In thousands) 2019 2018 Customer notes receivable $ 3,363 $ 3,130 Customer accounts receivable 320,958 314,791 Other receivables 23,738 32,516 Allowance for doubtful accounts (2,739 ) (4,177 ) Net current accounts and notes receivable $ 345,320 $ 346,260 Long-term notes receivable 13,335 16,021 Allowance for doubtful accounts (233 ) (120 ) Net long-term notes receivable $ 13,102 $ 15,901 The Company does not typically incur incremental costs of obtaining a contract that are contingent upon successful contract execution and would therefore be capitalized. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 28, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Note 4 – Property and Equipment Property and equipment consist of the following: December 28, December 29, (In thousands) 2019 2018 Land and improvements $ 90,200 $ 76,364 Buildings and improvements 555,049 534,620 Equipment 640,608 605,515 Total property and equipment 1,285,857 1,216,499 Less accumulated depreciation and amortization 670,041 637,439 Property and equipment, net $ 615,816 $ 579,060 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 5 – Goodwill and Other Intangible Assets All goodwill relates to the Food Distribution segment. (In thousands) Total Balance at December 30, 2017 and December 29, 2018: $ 178,648 Acquisitions (Note 15) 2,387 Balance at December 28, 2019: $ 181,035 The Company reviews goodwill and other intangible assets for impairment annually, during the fourth quarter of each year, and more frequently if circumstances indicate the possibility of impairment. 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 2019 annual impairment review, projected cash flows were discounted based on a weighted average cost of capital (“WACC”) of 9.9%. This WACC was developed from 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 Food Distribution reporting unit operates. In 2019, the Company also performed an interim impairment review during the second quarter due to a decline in the Company’s market capitalization. The Company concluded that the fair value of the Food Distribution reporting unit was substantially in excess of its carrying value in both the second and fourth quarter reviews. In 2017, the Company experienced significantly lower than expected Retail operating results and it was determined that the carrying value of the Retail segment exceeded its fair value. Consequently, the Company recorded a goodwill impairment charge of $189.0 million in the third quarter of 2017 to fully impair Retail segment goodwill. The following table reflects the components of amortized intangible assets, included in “Intangible assets, net” on the consolidated balance sheets: December 28, 2019 December 29, 2018 Gross Gross Carrying Accumulated Carrying Accumulated (In thousands) Amount Amortization Amount Amortization Non-compete agreements $ 4,438 $ 1,493 $ 3,358 $ 886 Favorable leases (a) — — 7,738 4,282 Pharmacy customer prescription lists 8,200 4,481 6,354 4,377 Customer relationships 57,937 11,497 57,937 7,835 Trade names 1,068 687 1,068 536 Franchise fees and other 1,114 422 1,064 422 Total $ 72,757 $ 18,580 $ 77,519 $ 18,338 (a) Upon the adoption of ASU 2016-02 at the beginning of 2019, favorable leases were reclassified as a component of Operating lease assets within the consolidated balance sheets The weighted average amortization periods for amortizable intangible assets as of December 28, 2019 are as follows: Non-compete agreements 6.1 years Pharmacy customer prescription lists 7.7 years Customer relationships 16.0 years Trade names 7.1 years Franchise fees and other 10.1 years Amortization expense for intangible assets was $5.8 million, $5.8 million and $5.5 million for 2019, 2018 and 2017, respectively. Estimated amortization expense for each of the five succeeding fiscal years is as follows: (In thousands) 2020 2021 2022 2023 2024 Amortization expense $ 5,662 $ 5,211 $ 4,985 $ 4,879 $ 4,627 Indefinite-lived intangible assets that are not amortized, consisting primarily of trade names and licenses for the sale of alcoholic beverages, totaled $76.3 million and $69.7 million as of December 28, 2019 and December 29, 2018, respectively. |
Restructuring, Asset Impairment
Restructuring, Asset Impairment and Other Charges | 12 Months Ended |
Dec. 28, 2019 | |
Restructuring And Related Activities [Abstract] | |
Restructuring, Asset Impairment and Other Charges | Note 6 – Restructuring, Asset Impairment and Other Charges The following table provides the activity of reserves for closed properties for 2019, 2018 and 2017. 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. (In thousands) 2019 2018 2017 Balance at beginning of year $ 16,386 $ 17,892 $ 21,932 Provision for closing charges 1,299 4,499 3,852 Provision for severance 447 153 624 Changes in estimates (635 ) (1,181 ) 1,028 Reclassification of lease liabilities (8,177 ) — — Lease termination adjustments (62 ) — (2,600 ) Other — 554 — Accretion expense 271 579 526 Payments (4,541 ) (6,110 ) (7,470 ) Balance at end of year $ 4,988 $ 16,386 $ 17,892 Included in the liability are lease-related ancillary costs from the date of site closure to the end of the remaining lease term. Prior to the adoption of ASU 2016-02 (Note 1), the liability also included lease obligations recorded at the present value of future minimum lease payments, calculated using a risk-free interest rate, net of estimated sublease income. Upon the adoption of ASU 2016-02, these liabilities were reclassified to operating lease liabilities within the consolidated balance sheets. Restructuring, asset impairment and other charges included in the consolidated statements of operations consisted of the following: (In thousands) 2019 2018 2017 Asset impairment charges (a) $ 17,925 $ 2,630 $ 33,679 Charge on customer advance (b) 2,351 32,000 — Provision for closing charges 1,299 4,499 3,852 (Gain) loss on sales of assets related to closed facilities (c) (8,532 ) (1,352 ) 998 Provision for severance for closed sites 447 153 624 Other costs associated with distribution center and store closings (d) 2,135 797 1,851 Changes in estimates (e) (635 ) (1,181 ) 1,028 Lease termination adjustments (f) (1,940 ) — (2,600 ) $ 13,050 $ 37,546 $ 39,432 (a) In 2019, asset impairment charges primarily related to Food Distribution segment, including the Caito trade name. In 2018 and 2017, asset impairment charges were incurred primarily in the Retail segment due to the economic and competitive environment of certain stores and in conjunction with the Company’s retail store rationalization plan. (b) The charge on customer advance relates to an advance to an independent retailer customer which was not fully recoverable. See Note 15 “Concentration of Credit Risk” for further discussion. (c) Gain (loss) on sales of assets were primarily related to the sale of a closed Food Distribution warehouse in 2019, a closed Military warehouse and closed Retail stores in 2018 and closed Retail stores in 2017. (d) Other costs associated with distribution center and store closings represent additional costs, including labor, inventory transfer and other administrative costs, incurred in connection with restructuring operations in the Food Distribution and Retail segments. (e) Changes in estimates primarily relate to revised estimates for turnover and other lease ancillary costs associated with previously closed locations, which were generally lower than the initial estimates at certain properties in 2019 and 2018 and reflected the deterioration of the condition of certain properties in 2017. (f) 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. In the second quarter of 2019 the Company announced a plan to reposition the Caito fresh production operations and to focus on traditional produce distribution and production of fresh cut produce and deli items. As a result of this plan, the Company evaluated the related indefinite-lived trade name and long-lived assets for potential impairment. The indefinite-lived trade name with a book value of $35.5 million was measured at a fair value of $21.5 million, resulting in an impairment charge of $14.0 million. During the fourth quarter of 2019, the operations of the fresh kitchen ceased and the related property and equipment assets were listed for sale. As of December 28, 2019, these assets were classified as Property and equipment held for sale within the consolidated balance sheet and written down to their fair value less costs to sell, resulting in a $2.4 million impairment within the Food Distribution segment. The Company entered into an agreement to sell the assets in January 2020 and expects the transaction to close during the first quarter of 2020. Indefinite lived intangible assets are tested for impairment at least annually, and as needed if an indicator of potential impairment exists. Indefinite lived intangible assets are measured at fair value using Level 3 inputs under the fair value hierarchy, as further described in Note 8 – Fair Value Measurements. 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. Long-lived assets are measured at fair value on a nonrecurring basis using Level 3 inputs under the fair value hierarchy, as further described in Note 8, Fair Value Measurements. Assets consisting of property and equipment with a book value of $32.8 million were measured at a fair value of $28.9 million, resulting in impairment charges of $3.9 million in 2019. 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, uses real estate brokers. Assets classified as held for sale in the consolidated balance sheet are valued at the expected net proceeds. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 7 – Long-Term Debt Long-term debt consists of the following: December 28, December 29, (In thousands) 2019 2018 Senior secured revolving credit facility, due December 2023 $ 640,409 $ 600,852 Senior secured term loan, due December 2023 — 60,000 Finance lease obligations (Note 10) 44,966 39,558 Other, 2.61% - 8.75%, due 2020 - 2026 8,633 4,447 Total debt - principal 694,008 704,857 Unamortized debt issuance costs (5,455 ) (6,797 ) Total debt 688,553 698,060 Less current portion 6,349 18,263 Total long-term debt $ 682,204 $ 679,797 On December 18, 2018, SpartanNash Company and certain of its subsidiaries entered into an amendment (the “Amendment”) to the Company’s Amended and Restated Loan and Security Agreement (the “Credit Agreement”). The principal changes of the amendment included an extension of the maturity date of the loans from December 20, 2021 to December 18, 2023, the ability to increase the size of the Tranche A revolving loan to $975 million from $900 million, an amendment to the interest rate grid such that rates for the Tranche A-1 revolving loans ($40 million capacity) are now LIBOR plus 2.25% to LIBOR plus 2.50%, a reload of the Tranche A-2 term loan ($60 million capacity) and a reset of certain advance rates for the borrowing base. In the third quarter of 2019, the Company executed an early payment of the Tranche A-2 term loan. T 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 requirements, 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 as either Eurodollar loans or Base Rate loans, . The interest rate terms for each of the aforementioned tranches are as follows: Credit Outstanding as of Facility December 28, 2019 Tranche (In thousands) Eurodollar Rate Base Rate Tranche A $ 609,599 LIBOR plus 1.25% to 1.50% Greater of: (i) the Federal Funds Rate plus 0.75% to 1.00% (ii) the Eurodollar Rate plus 2.25% to 2.50% (iii) the prime rate plus 0.25% to 0.50% Tranche A-1 $ 30,810 LIBOR plus 2.25% to 2.50% Greater of: (i) the Federal Funds Rate plus 1.75% to 2.00% (ii) the Eurodollar 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 28, 2019 and had Excess Availability after the 10% requirement of $236.8 million and $262.0 million at December 28, 2019 and December 29, 2018, respectively. The Credit Agreement provides for the issuance of letters of credit, of which $11.7 million were outstanding as of December 28, 2019 and December 29, 2018. The weighted average interest rate for all borrowings, including loan fee amortization, was 4.56% for 2019. At December 28, 2019, aggregate annual maturities and scheduled payments of long-term debt are as follows: (In thousands) 2020 2021 2022 2023 2024 Thereafter Total Total borrowings $ 6,349 $ 4,410 $ 3,830 $ 644,102 $ 3,971 $ 31,346 $ 694,008 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 8 – Fair Value Measurements ASC 820 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 5, Goodwill and Other Intangible Assets, and Note 6, Restructuring , Asset Impairment and Other Charges. At December 2 8 , 201 9 and December 29, 2018, the book value and estimated fair value of the Company’s debt instruments, excluding debt financing costs, were as follows: December 28, December 29, (In thousands) 2019 2018 Book value of debt instruments, excluding debt financing costs: Current maturities of long-term debt and finance lease liabilities $ 6,349 $ 18,263 Long-term debt and finance lease liabilities 687,659 686,594 Total book value of debt instruments 694,008 704,857 Fair value of debt instruments, excluding debt financing costs 700,631 705,875 Excess of fair value over book value $ 6,623 $ 1,018 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). Certain of the Company’s business combinations involved the potential for the receipt or payment of future contingent consideration upon the shortfall or achievement of various operating thresholds, respectively. The additional consideration was generally contingent on the acquired company reaching certain performance milestones, including attaining specified EBITDA levels. An asset or liability is recorded for the estimated fair value of the contingent consideration at the acquisition date and is re-measured each reporting period, using Level 3 inputs, with changes in fair value recognized as income or expense within operating expenses in the consolidated statements of operations. As of December 28, 2019, no contingent consideration provisions are outstanding. During 2019, the Company received $15.0 million related to the resolution of certain acquisition contingencies associated with the Caito and BRT acquisition. Upon receipt of the proceeds, the portion of the contingent consideration related to the acquisition date fair value was reported as a financing activity in the consolidated statements of cash flows. Amounts received in excess of the acquisition date fair value were reported as an operating activity in the consolidated statements of cash flows. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 28, 2019 | |
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 2019, 2018 and 2017, received rental income of $4.0 million, $3.6 million and $3.4 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, Leases. Contingencies related to credit risk and collectability are disclosed in Note 15, Concentration of Credit Risk. 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 Landover, Maryland IBT 639 February, 2021 Lima, Ohio IBT 908 January 2022 Bellefontaine, Ohio - GTL Truck Lines, Inc. IBT 908 February 2022 Bellefontaine, Ohio - General Merchandise Service Division IBT 908 February 2022 Norfolk, Virginia IBT 822 April 2022 Columbus, Georgia IBT 528 September 2022 Grand Rapids, Michigan IBT 406 October 2022 The Company contributes to the Central States Southeast and Southwest Pension Fund (“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, Lima, and Grand Rapids. This Plan provides retirement benefits to participants based on their service to contributing employers. The benefits are paid from assets held in trust for that purpose. Trustees are appointed by contributing employers and unions; however, SpartanNash is not a trustee of the Plan. The trustees typically 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 Company currently contributes to the Plan under the terms outlined in the “Primary Schedule” of Central States’ Rehabilitation Plan or those outlined in the “Default Schedule.” Both the Primary and Default schedules require varying increases in employer contributions over the previous year’s contribution. Increases are negotiated within each collective bargaining agreement and vary by location. The Plan continues to be in red zone status, and according to the Pension Protection Act (“PPA”), is considered to be in “critical and declining” zone status. Among other factors, plans in the “critical and declining” zone are generally less than 65% Based on the most recent information available to the Company, management believes that the present value of actuarial accrued liabilities in this multi-employer plan significantly exceeds the value of the assets held in trust to pay benefits. Because SpartanNash is one of a number of employers contributing to this plan, it is difficult to estimate the amount of the underfunding. Management is not aware of any significant change in funding levels since December 28, 2019. To reduce this underfunding, management expects multi-employer pension plan contributions to increase in future years. Any adjustment for withdrawal liability will be recorded when it is probable that a liability exists and can be reasonably determined. |
Leases
Leases | 12 Months Ended |
Dec. 28, 2019 | |
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 those locations in which it is economically feasible to continue to operate, management expects that lease options will be exercised as they come due. The terms of certain leases contain provisions requiring payment of percentage 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 provide 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) 2019 Operating lease cost $ 54,798 Short-term lease cost 7,131 Finance lease cost Amortization of assets 3,330 Interest on lease liabilities 3,084 Sublease income (4,014 ) Total net lease cost $ 64,329 Rental expense, net of sublease income, under operating leases was $58.0 million and $51.5 million in 2018 and 2017, respectively. Supplemental balance sheet information related to leases was as follows: December 28, December 29, (In thousands) 2019 2018 Finance leases: Property and equipment, at cost $ 67,206 $ 64,215 Accumulated amortization (27,131 ) (30,774 ) Property and equipment, net $ 40,075 $ 33,441 Current portion of finance lease liabilities $ 4,401 $ 6,840 Noncurrent finance lease liabilities 40,565 32,718 Total finance lease liabilities $ 44,966 $ 39,558 December 28, 2019 Operating leases: Operating lease assets $ 268,982 Current portion of operating lease liabilities $ 42,440 Noncurrent operating lease liabilities 267,350 Total operating lease liabilities $ 309,790 Weighted average remaining lease term: Operating leases 8.9 years Finance leases 9.9 years Weighted average discount rate: Operating leases 5.7 % Finance leases 7.0 % Supplemental cash flow and other information related to leases was as follows: (In thousands) 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 62,455 Operating cash flows used for finance leases 3,047 Financing cash flows used for finance leases 5,453 Lease assets obtained in exchange for lease liabilities: Total operating lease liabilities 34,346 Total finance lease liabilities 3,679 The Company’s total future lease commitments under operating and finance leases in effect at December 28, 2019 are as follows: Operating Finance (In thousands) Leases Leases Total 2020 $ 58,539 $ 7,590 66,129 2021 53,859 6,157 60,016 2022 47,616 5,573 53,189 2023 42,577 5,192 47,769 2024 35,580 5,212 40,792 Thereafter 162,649 38,588 201,237 Total 400,820 68,312 469,132 Less interest 91,030 23,346 114,376 Present value of lease liabilities 309,790 44,966 354,756 Less current portion 42,440 4,401 46,841 Long-term lease liabilities $ 267,350 $ 40,565 $ 307,915 The Company’s total future lease commitments under operating and capital leases previously accounted for under ASC 840, “Leases”, at December 29, 2018 were as follows: Operating Leases Used in Subleased Capital (In thousands) Operations to Others Total Leases 2019 $ 54,098 $ 1,039 $ 55,137 $ 9,091 2020 47,212 817 48,029 7,049 2021 39,887 694 40,581 5,377 2022 32,299 468 32,767 4,685 2023 25,419 357 25,776 3,912 Thereafter 75,626 147 75,773 25,152 Total $ 274,541 $ 3,522 $ 278,063 55,266 Interest (15,708 ) Present value of minimum lease obligations 39,558 Current maturities 6,840 Long-term capital lease obligations $ 32,718 Certain retail store facilities, either owned or obtained through leasing arrangements, are leased to others. A majority of the leases provide for minimum rent 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 28, December 29, (In thousands) 2019 2018 Land and improvements $ 7,077 $ 7,389 Buildings 29,287 28,932 Owned assets leased to others 36,364 36,321 Less accumulated amortization and depreciation 10,895 10,044 Net owned assets leased to others $ 25,469 $ 26,277 Future minimum rentals to be received under lease obligations in effect at December 28, 2019 are as follows: (In thousands) 2020 2021 2022 2023 2024 Thereafter Total Owned property $ 4,587 $ 4,344 $ 3,873 $ 2,940 $ 2,037 $ 18,113 $ 35,894 Leased property 3,127 2,636 2,288 1,984 1,400 4,011 15,446 Total $ 7,714 $ 6,980 $ 6,161 $ 4,924 $ 3,437 $ 22,124 $ 51,340 |
Associate Retirement Plans
Associate Retirement Plans | 12 Months Ended |
Dec. 28, 2019 | |
Compensation And Retirement Disclosure [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 the Company’s defined contribution plan; the remaining associates covered under CBAs participate in a multi-employer pension plan. The Company’s former non-contributory pension plan has been terminated. Defined Contribution Plans Expense for employer matching contributions made to defined contribution plans totaled $11.5 million, $7.0 million and $7.9 million in 2019, 2018 and 2017, 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. The Company holds variable universal life insurance policies on certain key associates intended to fund distributions under the deferred compensation plan referenced above. The net cash surrender value of approximately $4.3 million at both December 28, 2019 and December 29, 2018 is recorded in “Other assets, net” in the consolidated balance sheets. These policies have an aggregate amount of life insurance coverage of approximately $15.0 million. Defined Benefit Plans On February 28, 2018, the Company’s Board of Directors granted approval to proceed with terminating the SpartanNash Company Pension Plan (the “Pension Plan”), a frozen defined benefit pension plan and the Plan was terminated on July 31, 2018. The Company offered participants the option to receive an annuity or lump sum distribution which may be rolled over into another qualified plan. The distribution of assets to plan participants commenced in the second quarter and was completed in the third quarter of 2019. The remaining overfunded Plan assets will be utilized by the Company to fund obligations associated with other qualified retirement programs. Pension benefits were primarily based on years of service and compensation, with some differences resulting from the nature of how benefits were calculated under the Company’s legacy defined benefit plans, as described below. On December 31, 2014, the Retirement Plan for Employees of Super Food Services, Inc. (“Super Foods Plan”) was merged into the Spartan Stores, Inc. Cash Balance Pension Plan (“Cash Balance Pension Plan”) and renamed the SpartanNash Company Pension Plan. Annual payments to the pension trust fund were determined in compliance with the Employee Retirement Income Security Act of 1976 (“ERISA”). The Cash Balance Pension Plan, a non-contributory cash balance pension plan, was frozen effective January 1, 2011. As a result of the freeze, no additional associates were eligible to participate in the plan after January 1, 2011, and additional service credits were no longer added to each participant’s account; however, interest credits continued to accrue. Prior to the plan freeze, the plan benefit formula utilized a cash balance approach whereby credits were added annually to a participant’s account based on compensation and years of vested service, with interest credits also added to the participant’s account at the Company’s discretion. The Super Foods Plan, a qualified non-contributory pension plan offered by one of the Company’s subsidiaries, provided retirement income for certain eligible full-time associates who were not covered by a union retirement plan. Pension benefits under the plan were based on length of service and compensation, and contributions met the minimum funding requirements. This plan was frozen effective January 1, 1998. If lump sum distributions or annuity payouts are made in an amount exceeding annual interest cost, settlement accounting is triggered, and the resulting settlement expense is recorded as a component of total pension expense (income). In 2019 lump sum distributions and annuity payouts of $72.6 million were made resulting in pre-tax settlement charges of $18.2 million, including $18.0 million related to the Plan termination. The Company also recognized other termination expenses of $1.5 million in 2019. Lump sum distributions of $3.3 million and $2.6 million were made and resulting pension settlement charges of $0.8 million and $0.5 million were incurred in 2018 and 2017, respectively. 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”). Former Spartan Stores, Inc. associates hired prior to January 1, 2002 who were not covered by CBAs during their employment, who have at least 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 pension and postretirement benefit plans, excluding multi-employer plans. The prepaid, current accrued, and noncurrent accrued benefit costs associated with pension and postretirement benefits are reported in “Prepaid expenses and other current assets,” “Other assets, net,” “Accrued payroll and benefits,” and “Other long-term liabilities,” respectively, in the consolidated balance sheets. Pension Plan Retiree Medical Plan December 28, December 29, December 28, December 29, (In thousands, except percentages) 2019 2018 2019 2018 Funded Status Projected/Accumulated benefit obligation: Balance at beginning of year $ 73,275 $ 80,153 $ 9,443 $ 10,199 Service cost — — 171 195 Interest cost 1,134 2,283 375 339 Actuarial loss (gain) 618 (1,578 ) 1,181 (961 ) Benefits paid (75,027 ) (7,583 ) (387 ) (329 ) Balance at end of year $ — $ 73,275 $ 10,783 $ 9,443 Fair value of plan assets: Balance at beginning of year $ 74,241 $ 81,255 $ — $ — Actual return (loss) on plan assets 2,282 (931 ) — — Company contributions — 1,500 387 329 Benefits paid (75,027 ) (7,583 ) (387 ) (329 ) Balance at end of year $ 1,496 $ 74,241 $ — $ — Funded (unfunded) status $ 1,496 $ 966 $ (10,783 ) $ (9,443 ) Components of net amount recognized in consolidated balance sheets: Current assets $ 1,496 $ 966 $ — $ — Current liabilities — — (466 ) (437 ) Noncurrent liabilities — — (10,317 ) (9,006 ) Net asset (liability) $ 1,496 $ 966 $ (10,783 ) $ (9,443 ) Amounts recognized in AOCI: Net actuarial loss $ — $ 19,885 $ 1,809 $ 629 Prior service credit — — — (92 ) Accumulated other comprehensive loss $ — $ 19,885 $ 1,809 $ 537 Weighted average assumptions at measurement date: Discount rate N/A 3.48% 3.26% 4.41% Ultimate health care cost trend rate N/A N/A 4.50% 5.00% Pension Plan Retiree Medical Plan (In thousands, except percentages) 2019 2018 2017 2019 2018 2017 Components of net periodic benefit (income) cost: Service cost $ — $ — $ — $ 171 $ 195 $ 184 Interest cost 1,134 2,283 2,345 375 339 345 Amortization of prior service cost — — — (92 ) (158 ) (158 ) Expected return on plan assets (714 ) (3,631 ) (3,836 ) — — — Recognized actuarial net loss 691 417 221 — 88 59 Net periodic benefit expense (income) $ 1,111 $ (931 ) $ (1,270 ) $ 454 $ 464 $ 430 Settlement expense 18,244 785 548 — — — Total net periodic benefit cost (income) $ 19,355 $ (146 ) $ (722 ) $ 454 $ 464 $ 430 Weighted average assumptions used to determine net periodic benefit (income) cost: Discount rate 3.48% 3.45% 3.82% 4.41% 3.72% 4.26% Expected return on plan assets 2.80% 4.84% 4.83% N/A N/A N/A The net actuarial loss included in AOCI and expected to be recognized in net periodic benefit cost in 2020 for the Retiree Medical Plan is $1.8 million. Prior service costs (credits) are amortized on a straight-line basis over the average remaining service period of active participants. Actuarial gains and losses for the Pension Plan were amortized over the average remaining life of all participants when the accumulation of such gains and losses exceeded 10% of the greater of the projected benefit obligation and the market-related value of plan assets. 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: 2019 2018 2017 Post-65 7.50% 8.00% 8.40% The effect of a one-percentage point increase or decrease in assumed healthcare cost trend rates on the total service and interest components and the post-retirement benefit obligations would be less than $0.1 million. Expected Return on Assets and Investment Strategy The Company followed an investment policy for the Pension Plan with a long-term asset allocation mix designed to meet long-term retirement obligations by investing in equity, fixed income and other securities to cover cash flow requirements of the plan and minimize long-term costs. In 2018, in the context of the Pension Plan termination and the expected distribution of the related assets, the Company revised the asset mix to include only fixed income securities, which reduced the Pension Plan’s exposure to market volatility. Certain of the fixed income investments have a duration of 90 days or less, and as such are classified as cash equivalents. As of December 28, 2019, all of the remaining assets are cash equivalents. The investment policy emphasized the following key objectives: (1) provide benefit security to participants by maximizing the return on plan assets at an acceptable risk level, (2) maintain adequate liquidity for current benefit payments, (3) avoid unexpected increases in pension expense, and (4) within the scope of the above objectives, minimize long term funding to the plan. The fair values of the Pension Plan assets at December 28, 2019 and December 29, 2018, by asset category, are as follows: Fair Value of Assets as of December 28, 2019 (In thousands) Total Level 1 Level 2 Level 3 NAV (a) Mutual funds $ — $ — $ — $ — $ — Pooled funds — — — — — Money market fund 1,496 — 1,496 — — Guaranteed annuity contracts — — — — — Total fair value $ 1,496 $ — $ 1,496 $ — $ — Fair Value of Assets as of December 29, 2018 (In thousands) Total Level 1 Level 2 Level 3 NAV (a) Mutual funds $ 20,124 $ — $ — $ — $ 20,124 Pooled funds 29,576 — — — 29,576 Money market fund 11,992 — 11,992 — — Guaranteed annuity contracts 12,549 — — 12,549 — Total fair value $ 74,241 $ — $ 11,992 $ 12,549 $ 49,700 (a) Assets are measured at net asset value (“NAV”) (or its equivalent) on a non-active market, and therefore, have not been classified in the fair value hierarchy. Level 3 assets consist of guaranteed annuity contracts. A reconciliation of the beginning and ending balances for Level 3 assets is as follows: (In thousands) December 28, 2019 December 29, 2018 Balance at beginning of year $ 12,549 $ 13,891 Purchases, sales, issuances and settlements, net (13,112 ) (1,712 ) Interest income 349 588 Unrealized loss (gains) 214 (218 ) Balance at end of year $ — $ 12,549 See Note 8 for a discussion of the levels of the fair value hierarchy. The fair value measurement level used is based on the lowest level of any input that is significant to the fair value measurement. The following is a description of the valuation methods used for the Pension Plan’s assets measured at fair value in the above tables: Money market fund: The carrying value approximates fair value. Money market funds are valued on a daily basis at NAV using the amortized cost of the securities held in the fund. Since amortized cost does not meet the criteria for an active market, money market funds are classified within Level 2 of the fair value hierarchy of ASC 820. Mutual Funds: These investments were valued using NAV as a practical expedient to estimate fair value and are not classified in the fair value hierarchy. NAV is determined once a day after the closing of the exchange based upon the underlying assets in the fund, less the fund’s liabilities, expressed on a per-share basis. Mutual funds held by the Pension Plan were open end mutual funds that were registered with the Securities and Exchange Commission (“SEC”). These funds are required to publish their daily NAV and to transact at that price. The mutual funds held by the Pension Plan were therefore deemed to be actively traded. Pooled Funds: The plan held units of various Aon Hewitt Group Trust Funds offered through a private placement. The units are valued daily using NAV as a practical expedient to estimate fair value. NAVs are based on the fair value of each fund’s underlying investments and are not classified in the fair value hierarchy. The practical expedient is not used when it is determined to be probable that the investment will be sold for an amount different than the reported NAV. Guaranteed Annuity Contracts: The guaranteed annuity contracts are immediate participation contracts held with insurance companies that acted as custodian of the Pension Plan’s assets. The guaranteed annuity contracts are stated at contract values, which are determined by the custodians and approximate fair values. The Company evaluated the general financial condition of the custodians as a component of validating whether the calculated contract value is an accurate approximation of fair value. The review of the general financial condition of the custodians is considered obtainable/observable through the review of readily available financial information the custodians are required to file with the SEC. The group annuity contracts are classified within Level 3 of the valuation hierarchy of ASC 820. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuations methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement. The Company expects to make contributions in 2020 of $0.5 million to the Retiree Medical Plan. The following estimated benefit payments are expected to be paid in the following fiscal years: (In thousands) 2020 2021 2022 2023 2024 2025 to 2029 Post-retirement medical benefits $ 466 $ 503 $ 539 $ 571 $ 597 $ 3,281 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 plans under the terms contained in existing CBAs and in the amounts set forth within these agreements. The health and welfare plans provide medical, dental, pharmacy, vision, and other ancillary benefits to active associates and retirees, as determined by the trustees of the plan. The Company’s contributions largely benefit active associates, and as such, may not constitute contributions to a postretirement benefit plan. However, the Company is unable to separate contribution amounts for postretirement benefits from contribution amounts paid for active participants in the plan. These plans 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 funded. The Company contributed $13.8 million, $13.8 million and $14.1 million to these plans in 2019, 2018 and 2017, 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 and in the amounts set forth within these agreements. The Company is party to four CBAs that require contributions to the Plan with expiration dates ranging from January 2022 October 2022 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. The PPA zone status of the Plan, which is based on information the Company received from the Plan and is certified by the Plan’s actuary, is “critical and declining” for the Plan’s two most recent fiscal years ending December 31, 2019 and 2018. Among other factors, plans in the “critical and declining” zone are generally less than 65% funded and projected to become insolvent within the next 15 years (or 20 years depending on the ratio of active-to-inactive participants). A rehabilitation plan has been implemented by the trustees of the Plan, and the CBAs that cover warehouse personnel and drivers in the Bellefontaine and Lima, Ohio distribution centers have permanent surcharges imposed due to the failure to adopt the trustee recommended rehabilitation plan. Refer to Note 9, Commitments and Contingencies, for further information regarding the Company’s participation in the Central States Plan. As of the date the consolidated financial statements were issued, Form 5500 was not available for the plan year ended December 31, 2019. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income or Loss | 12 Months Ended |
Dec. 28, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income or Loss | Note 12 – Accumulated Other Comprehensive Income or Loss Accumulated Other Comprehensive Income or Loss (“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 pension and other postretirement benefit obligation adjustments. Changes in AOCI are as follows: (In thousands) 2019 2018 2017 Balance at beginning of the year, net of tax $ (15,759 ) $ (15,136 ) $ (11,437 ) Other comprehensive income (loss) before reclassifications 219 (2,026 ) (2,448 ) Income tax (expense) benefit (55 ) 458 934 Other comprehensive income (loss), net of tax, before reclassifications 164 (1,568 ) (1,514 ) Amortization of amounts included in net periodic benefit cost (a) 18,480 1,204 799 Income tax expense (b) (4,485 ) (259 ) (302 ) Amounts reclassified out of AOCI, net of tax 13,995 945 497 Other comprehensive income (loss), net of tax 14,159 (623 ) (1,017 ) Reclassification of stranded tax effects (c) — — (2,682 ) Balance at end of the year, net of tax $ (1,600 ) $ (15,759 ) $ (15,136 ) (a) Reclassified from AOCI into Other, net, or Selling, general and administrative expense. Amounts include amortization of net actuarial loss, amortization of prior service cost, and settlement expense totaling $18.4 million, $0.9 million and $0.6 million in 2019, 2018 and 2017, respectively. (b) Reclassified from AOCI into Income tax (benefit) expense. (c) Reclassification reflects the impact of ASU 2018-02, which allowed stranded tax effects from the Tax Cuts and Jobs Act to be reclassified from AOCI to retained earnings. |
Income Tax
Income Tax | 12 Months Ended |
Dec. 28, 2019 | |
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) 2019 2018 2017 Current income tax expense (benefit): Federal $ (899 ) $ (1,607 ) $ 366 State 817 1,107 528 Total current income tax expense (benefit) (82 ) (500 ) 894 Deferred income tax (benefit) expense: Federal 126 8,370 (72,842 ) State (2,386 ) (963 ) (7,079 ) Total deferred income tax (benefit) expense (2,260 ) 7,407 (79,921 ) Total income tax (benefit) expense $ (2,342 ) $ 6,907 $ (79,027 ) A reconciliation of the statutory federal rate to the effective rate is as follows: 2019 2018 2017 Federal statutory income tax rate 21.0 % 21.0 % 35.0 % Stock compensation 7.2 0.7 1.0 Non-deductible expenses 0.8 0.6 (0.3 ) Domestic production activities deduction — — 0.1 Federal rate change effect on deferred taxes (a) — (1.2 ) 19.7 Change in tax contingencies — (2.5 ) — Charitable product donations (5.6 ) (0.6 ) 0.4 Other, net (2.4 ) (0.9 ) 0.8 State taxes, net of federal income tax benefit (36.1 ) 1.7 3.1 Tax credits (50.4 ) (1.8 ) 0.2 Effective income tax rate (65.5 ) % 17.0 % 60.0 % (a) On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to reducing the U.S. federal corporate tax rate from 35 percent to 21 percent, In connection with initial analysis of the impact of the Tax Act, the Company recorded a provisional discrete income tax benefit of $26.0 million in the period ended December 30, 2017 associated with the re-measurement of deferred tax assets and liabilities as a result of the reduction in the U.S. federal corporate tax rate. In the third quarter of 2018, the Company completed its accounting for the income tax effects of certain elements of the Tax Act, resulting in an income tax benefit of $0.5 million. Deferred tax assets and liabilities resulting from temporary differences as of December 28, 2019 and December 29, 2018 are as follows: December 28, December 29, (In thousands) 2019 2018 Deferred tax assets: Employee benefits $ 17,087 $ 17,330 Accrued workers' compensation 1,632 1,402 Allowance for doubtful accounts 10,870 10,171 Intangible assets 1,319 — Restructuring 472 1,806 Deferred revenue 1,678 1,269 Accrued rent 399 3,196 Lease liabilities 85,005 7,843 Accrued insurance 1,007 1,150 Federal net operating loss carryforwards (a) 2,332 — Federal credits (b) 851 — State net operating loss carryforwards (a) 4,498 2,656 All other 4,073 3,917 Total deferred tax assets 131,223 50,740 Deferred tax liabilities: Property and equipment 45,136 43,844 Lease assets 73,191 5,314 Inventory 33,739 32,401 Goodwill 21,404 15,763 Intangible assets — 1,011 All other 864 1,661 Total deferred tax liabilities 174,334 99,994 Net deferred tax liability $ 43,111 $ 49,254 (a) As of December 28, 2019, the Company’s federal net operating loss carryforwards do not expire, and state net operating loss carryforwards in various taxing jurisdictions expire in tax years 2021 through 2039 if not utilized. (b) As of December 28, 2019, the Company’s federal credit carryforwards expire in tax year 2039. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: December 28, December 29, (In thousands) 2019 2018 Balance at beginning of year $ 1,477 $ 2,408 Gross increases - tax positions taken in prior years 71 163 Gross decreases - tax positions taken in prior years (125 ) (171 ) Gross increases - tax positions taken in current year 850 894 Lapsed statutes of limitations (848 ) (1,817 ) Balance at end of year $ 1,425 $ 1,477 Unrecognized tax benefits of $0.9 million are set to expire prior to January 2, 2021. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense. The amount recognized due to a lapse in the statute of limitations that reduced the Company’s effective income tax rate in 2019 and 2018 was $0.2 million and $1.0 million, respectively. 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 $0.3 million as of December 28, 2019. 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 U.S. federal, state or local examinations by tax authorities for fiscal years before the year ended January 2 , 2016 . |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 28, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 14 – Stock-Based Compensation The Company sponsors a shareholder-approved 10-year stock incentive plan covering 2,500,000 shares of SpartanNash’s common stock. The SpartanNash Company Stock Incentive Plan of 2015 (the “2015 Plan”) provides for the granting of stock options, stock appreciation rights, restricted stock, restricted stock units, stock awards, and other stock-based and stock-related awards to directors, officers and other key associates. Shares issued as a result of stock option exercises were funded with the issuance of new shares. Holders of restricted stock and stock awards are entitled to participate in cash dividends and dividend equivalents. As of December 28, 2019, a total of All outstanding unvested shares of restricted stock vest immediately upon a “Change in Control,” as defined by the Plan. The following table summarizes stock option activity for 2019, 2018 and 2017: Weighted Weighted Average Average Remaining Aggregate Shares Exercise Contractual Intrinsic Value Under Options Price Life Years (in thousands) Options outstanding and exercisable at December 31, 2016 200,517 $ 19.94 1.65 $ 3,929 Exercised (152,589 ) 21.02 1,543 Cancelled/Expired — — Options outstanding and exercisable at December 30, 2017 47,928 16.52 1.07 487 Exercised (20,476 ) 13.87 1,043 Cancelled/Expired (14,400 ) 22.69 Options outstanding and exercisable at December 29, 2018 13,052 13.87 0.37 39 Exercised (13,052 ) 13.87 51 Cancelled/Expired — — Options outstanding and exercisable at December 28, 2019 — $ — — $ — Cash received from option exercises was $0.2 million, $0.3 million and $3.2 million in 2019, 2018 and 2017, respectively. Restricted shares awarded to associates vest ratably over a four-year The following table summarizes restricted stock activity for 2019, 2018 and 2017: Weighted Average Grant-Date Shares Fair Value Outstanding and nonvested at December 31, 2016 660,143 $ 26.48 Granted 296,297 34.68 Vested (258,183 ) 25.90 Forfeited (84,513 ) 29.11 Outstanding and nonvested at December 30, 2017 613,744 30.32 Granted 482,572 17.00 Vested (260,644 ) 28.89 Forfeited (12,853 ) 23.52 Outstanding and nonvested at December 29, 2018 822,819 23.07 Granted 488,063 17.84 Vested (346,721 ) 23.47 Forfeited (35,428 ) 20.11 Outstanding and nonvested at December 28, 2019 928,733 $ 20.28 The total fair value of shares vested was $6.2 million, $4.8 million and $9.3 million in 2019, 2018 and 2017, respectively. Stock-based compensation expense recognized and included in “Selling, general and administrative expenses” in the consolidated statements of operations, and related tax benefits were as follows: (In thousands) 2019 2018 2017 Restricted stock $ 7,312 $ 7,646 $ 9,611 Tax benefits (1,303 ) (2,242 ) (3,440 ) Stock-based compensation expense, net of tax $ 6,009 $ 5,404 $ 6,171 As of December 28, 2019, total unrecognized compensation cost related to non-vested restricted stock awards granted under the stock incentive plan was $4.9 million. The remaining compensation costs not yet recognized are expected to be recognized over a weighted average period of 2.4 years The Company recognized tax deductions of $7.2 million, $5.6 million and $11.6 million related to the exercise of stock options and the vesting of restricted stock in 2019, 2018 and 2017, respectively. The Company sponsors a stock bonus plan covering 300,000 shares of SpartanNash common stock. Under the provisions of this plan, certain officers and key associates may elect to receive a portion of their annual bonus in common stock rather than cash, which will be 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 currently 24 months. Compensation expense is recorded based upon the market price of the stock as of the measurement date. During 2018, an additional 45,000 shares were authorized to be granted from the stock bonus plan. In 2019, 3,443 shares were issued leaving 41,557 shares remaining unissued under the stock bonus plan as of December 28, 2019. The Company also sponsors an associate stock purchase plan covering 200,000 shares of SpartanNash common stock. The plan enables associates of the Company to purchase shares at 95% of the fair market value. As of December 28, 2019, a total of 130,185 shares had been issued under the plan. |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 28, 2019 | |
Risks And Uncertainties [Abstract] | |
Concentration of Credit Risk | Note 15 – Concentration of Credit Risk The Company may 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 five 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 and lease obligations 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 and lease obligations, which would be due in accordance with the underlying agreements. 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, or in limited instances for remaining a SpartanNash customer for a specified time period. These customer advances must be repaid if the purchase volume requirements are not met or if the retailer no longer remains a customer for the specified time period. Collectability of customer advances is not assured. The Company had previously advanced funds to an In the ordinary course of business, the Company also subleases and assigns certain leases to third parties. As of December 28, 2019, the Company estimates the present value of its maximum potential obligations for subleases and assigned leases to be approximately $7.7 million and $12.0 million, respectively. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 28, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Note 16 – Supplemental Cash Flow Information Supplemental cash flow information is as follows: (In thousands) 2019 2018 2017 Non-cash financing activities: Issuance of note payable as consideration for acquisition $ — $ — $ 2,460 Recognition of investment in direct financing lease — — 2,295 Recognition of finance lease obligations 3,679 3,304 588 Non-cash investing activities: Capital expenditures included in accounts payable 16,111 4,564 5,418 Derecognition of fixed assets under direct financing lease — — 2,295 Finance lease asset additions 3,679 3,304 588 Non-cash acquisition (Note 15) 5,363 — — Acquisition financed through issuance of note payable — — 2,460 Other supplemental cash flow information: Cash paid for interest 33,236 28,138 22,818 Income tax (refunds) payments (9,680 ) 139 10,657 |
Reporting Segment Information
Reporting Segment Information | 12 Months Ended |
Dec. 28, 2019 | |
Segment Reporting [Abstract] | |
Reporting Segment Information | Note 17 – Reporting Segment Information SpartanNash sells and distributes products that are typically found in supermarkets and discount stores. The operating segments reflect the manner in which the business is managed and how the Company allocates resources and assesses performance internally. The Company’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 three reportable segments: Food Distribution, Military and Retail. These reportable segments are three distinct businesses, each with a different customer base, management structure, and basis for determining budgets, forecasts, and executive compensation. 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. The Company’s Food Distribution segment, which operates 11 distribution centers, supplies grocery products, including dry groceries, produce, dairy products, meat, delicatessen items, bakery goods, frozen food, seafood, floral products, general merchandise, beverages, tobacco products, health and beauty care products and pharmacy primarily to a diverse group of independent and chain retailers, food service distributors and the Company’s corporate owned retail stores. The Company’s Food Distribution customer base is diverse. Sales to Dollar General represent 17%, 16%, and 14% of consolidated net sales for 2019, 2018 and 2017, respectively. No other single customer exceeded 4% of consolidated net sales in any of the years presented. The Company also offers certain value-added services (e.g., accounting, payroll, marketing, etc.) to its independent retail customers. These services are not material to the Company’s financial statements. Sales to independent retailers and inter-segment sales are recorded based upon either a “cost plus” model or a “variable mark-up” model, depending on the commodity and servicing distribution center. To supply its wholesale customers, the Company operates a fleet of tractors, conventional trailers and refrigerated trailers and also provides managed freight solutions. The Military segment contracts with manufacturers and brokers to distribute a wide variety of grocery products, including dry groceries, beverages, meat, and frozen foods, primarily to U.S. military commissaries and exchanges from its 7 distribution centers, two of which are utilized by the Food Distribution segment. The contracts typically specify the commissaries and exchanges to supply on behalf of the manufacturer, the manufacturer’s products to be supplied, service and delivery requirements and pricing and payment terms. The Company is also the DeCA exclusive worldwide supplier of private brand grocery and related products to U.S. military commissaries. The Company procures the grocery and related products from various manufacturers, and upon receiving customer orders from DeCA, either delivers the products to the U.S. military commissaries itself or partners with a third party, Coastal Pacific Food Distributors, to deliver the products on its behalf. The Retail segment operated 156 corporate owned retail stores and 37 fuel centers, predominantly in the Midwest region, as of December 28, 2019. The Company’s retail stores typically offer dry groceries, produce, dairy products, meat, delicatessen items, bakery goods, frozen food, seafood, floral products, general merchandise, beverages, tobacco products and health and beauty care products. The Company also offered pharmacy services in 97 of its corporate owned retail stores as of December 28, 2019. Identifiable assets represent total assets directly associated with the reporting segments. Eliminations in assets identified to segments include intercompany receivables, payables and investments. The following tables set forth information about the Company by reporting segment: Food (In thousands) Distribution Military Retail Total 2019 Net sales to external customers $ 3,982,609 $ 2,172,107 $ 2,381,349 $ 8,536,065 Inter-segment sales 976,372 — — 976,372 Merger/acquisition and integration (122 ) — 1,559 1,437 Restructuring, asset impairment and other charges (gains) 14,844 — (1,794 ) 13,050 Depreciation and amortization 33,396 11,834 43,171 88,401 Operating earnings (loss) 47,416 (9,316 ) 18,842 56,942 Capital expenditures 28,385 6,295 40,135 74,815 2018 Net sales to external customers $ 3,991,450 $ 2,166,843 $ 1,906,259 $ 8,064,552 Inter-segment sales 842,934 — — 842,934 Merger/acquisition and integration 3,581 4 1,352 4,937 Restructuring, asset impairment and other charges (gains) 33,056 (801 ) 5,291 37,546 Depreciation and amortization 32,073 11,968 38,812 82,853 Operating earnings 48,752 5,647 16,113 70,512 Capital expenditures 33,271 3,530 34,694 71,495 2017 Net sales to external customers $ 3,827,909 $ 2,144,022 $ 1,991,868 $ 7,963,799 Inter-segment sales 885,872 — — 885,872 Merger/acquisition and integration 6,244 1,522 335 8,101 Goodwill impairment — — 189,027 189,027 Restructuring, asset impairment and other charges 1,317 500 37,615 39,432 Depreciation and amortization 30,255 11,626 41,359 83,240 Operating earnings (loss) 83,115 6,969 (196,759 ) (106,675 ) Capital expenditures 25,990 6,482 38,434 70,906 December 28, December 29, (In thousands) 2019 2018 Total Assets Food Distribution $ 1,087,307 $ 1,074,125 Military 390,799 405,587 Retail 794,413 489,049 Discontinued operations 3,090 3,151 Total $ 2,275,609 $ 1,971,912 |
Quarterly Financial Information
Quarterly Financial Information (unaudited) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (unaudited) | Note 18 – Quarterly Financial Information (Unaudited) Earnings per share amounts for each quarter are required to be computed independently and may not sum to the amount computed for the total year. 2019 Full Year 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter (In thousands, except per share amounts) 52 Weeks (12 Weeks) (12 Weeks) (12 Weeks) (16 Weeks) Net sales $ 8,536,065 $ 1,997,953 $ 1,999,808 $ 1,995,929 $ 2,542,375 Gross profit 1,243,830 286,733 290,361 289,007 377,729 Merger/acquisition and integration 1,437 73 — 582 782 Restructuring, asset impairment and other charges (gains) 13,050 2,835 1,296 14,581 (5,662 ) Postretirement benefit expense 19,803 126 10,221 8,821 635 Earnings (loss) before income taxes and discontinued operations 3,575 5,104 (1,966 ) (9,708 ) 10,145 Earnings (loss) from continuing operations 5,917 5,473 (310 ) (6,767 ) 7,521 Loss from discontinued operations, net of taxes (175 ) (49 ) (27 ) (47 ) (52 ) Net earnings (loss) $ 5,742 $ 5,424 $ (337 ) $ (6,814 ) $ 7,469 Earnings (loss) from continuing operations per share: Basic $ 0.16 $ 0.15 $ (0.01 ) $ (0.19 ) $ 0.21 Diluted 0.16 0.15 (0.01 ) (0.19 ) 0.21 Net earnings (loss) per share: Basic $ 0.16 $ 0.15 $ (0.01 ) $ (0.19 ) $ 0.21 Diluted 0.16 0.15 (0.01 ) (0.19 ) 0.21 Dividends $ 27,616 $ 6,907 $ 6,905 $ 6,902 $ 6,902 2018 Full Year 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter (In thousands, except per share amounts) (52 Weeks) (12 Weeks) (12 Weeks) (12 Weeks) (16 Weeks) Net sales $ 8,064,552 $ 1,896,796 $ 1,886,730 $ 1,895,953 $ 2,385,073 Gross profit 1,110,406 245,390 256,142 265,660 343,214 Merger/acquisition and integration 4,937 1,406 521 804 2,206 Restructuring, asset impairment and other charges (gains) 37,546 32,277 232 (1,164 ) 6,202 Postretirement benefit expense (income) 159 179 (6 ) (10 ) (4 ) Earnings (loss) before income taxes and discontinued operations 40,698 (19,501 ) 19,919 23,085 17,195 Earnings (loss) from continuing operations 33,791 (14,027 ) 17,545 17,838 12,435 (Loss) earnings from discontinued operations, net of taxes (219 ) 19 (80 ) (66 ) (92 ) Net earnings (loss) $ 33,572 $ (14,008 ) $ 17,465 $ 17,772 $ 12,343 Earnings (loss) from continuing operations per share: Basic $ 0.94 $ (0.39 ) $ 0.49 $ 0.50 $ 0.34 Diluted 0.94 (0.39 ) 0.49 0.50 0.34 Net earnings (loss) per share: Basic $ 0.93 $ (0.39 ) $ 0.49 $ 0.49 $ 0.34 Diluted 0.93 (0.39 ) 0.49 0.49 0.34 Dividends $ 25,923 $ 6,471 $ 6,469 $ 6,457 $ 6,526 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 28, 2019 | |
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 ending or ended January 2, 2021 (“2020”), December 28, 2019 ("2019" or “current year”), December 29, 2018 (“2018” or “prior year”) and December 30, 2017 (“2017”), all of which include 52 weeks, with the exception of 2020, which includes 53 weeks. All fiscal quarters are 12 weeks, except for the Company’s first quarter, which is 16 weeks. The fourth quarter of 53-week years include 13 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, 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 the principal (i.e., report revenues on a gross basis) or agent (i.e., report 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, flex funds, 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 for all non-production operations includes purchase costs, in-bound freight, physical inventory adjustments, markdowns and promotional allowances and excludes warehousing costs, depreciation and other administrative expenses. For the Company’s food processing operations, cost of sales includes direct product and production costs, inbound freight, purchasing and receiving costs, utilities, depreciation, and other indirect production costs and excludes out-bound freight and other administrative expenses. As a result, 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 generally 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 distribution segments include shipping and handling costs in the selling, general and administrative section of operating expenses within the consolidated statements of operations. |
Cash and Cash Equivalents | Cash and Cash Equivalents: Cash and cash equivalents consist 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 shown net of allowances for credit losses of $3.0 million and $4.3 million as of December 28, 2019 and December 29, 2018, respectively. The Company evaluates the adequacy of its allowances by analyzing the aging of receivables, customer financial condition, historical collection experience, the value of collateral and other economic and industry factors. Actual collections may differ from historical experience, and if economic, business or customer conditions deteriorate significantly, adjustments to these reserves may be required. When the Company becomes aware of factors that indicate a change in a specific customer’s ability to meet its financial obligations, the Company records a specific reserve for credit losses. Operating results include bad debt expense of $1.5 million, $3.4 million and $1.5 million for 2019, 2018 and 2017, respectively. |
Inventory Valuation | Inventory Valuation: Inventories are valued at the lower of cost or market. Approximately 82.8% and 88.9% of the Company’s inventories were valued on the last-in, first-out (LIFO) method at December 28, 2019 and December 29, 2018, respectively. If replacement cost had been used, inventories would have been $60.9 million and $55.1 million higher at December 28, 2019 and December 29, 2018, respectively. The replacement cost method utilizes the most current unit purchase cost to calculate the value of inventories. During 2019, 2018 and 2017, certain inventory quantities were reduced. The reductions resulted in liquidation of LIFO inventory carried at lower costs prevailing in prior years, the effect of which decreased the LIFO provision by $1.5 million, $1.1 million and $0.2 million in 2019, 2018 and 2017, respectively. The Company accounts for its Food Distribution and Military 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 with cost of sales and gross margin calculated 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 evaluates inventory shortages throughout the year based on actual physical counts in its facilities. The Company records allowances for inventory shortages based on the results of recent physical counts to provide for estimated shortages from the last physical count to the financial statement date. |
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 reporting segment. Measuring the fair value of reporting units is a Level 3 measurement under the fair value hierarchy. See Note 8, Fair Value Measurements, for a discussion of fair value levels. Intangible assets primarily consist of trade names, customer relationships, favorable lease agreements, 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: favorable leases (related lease terms), prescription lists and customer relationships (period of expected benefit reflecting the pattern in which the economic benefits are consumed), non-compete agreements and franchise fees (length of agreements), and trade names with definite lives (expected life of the assets). Indefinite-lived trade names are not amortized but are tested at least annually for impairment, and liquor licenses are also not amortized as they have indefinite lives. |
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 amounted to $35.2 million and $33.5 million as of December 28, 2019 and December 29, 2018, 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 obligations 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 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 economy, real estate market conditions and inflation. The Company calculates operating and finance lease 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. Prior to the adoption of ASC 842, these reserves also included the future minimum lease payments associated with these properties. 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 one to 9 years. Adjustments to closed property reserves primarily relate to actual exit costs differing from original estimates. 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 obligations” in the consolidated balance sheets. |
Insurance Reserves | Insurance Reserves: SpartanNash is self-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 basis, the Company’s exposure is up to $0.5 million for workers’ compensation and general liability, $1.0 million for automobile liability and $0.5 million for healthcare per covered life per year. A summary of changes in the Company’s self-insurance liability is as follows: (In thousands) 2019 2018 2017 Balance at beginning of year $ 14,291 $ 15,155 $ 14,730 Expenses 69,253 49,532 54,748 Acquisitions 1,894 — — Claim payments, net of employee contributions (68,658 ) (50,396 ) (54,323 ) Balance at end of year $ 16,780 $ 14,291 $ 15,155 The current portion of the self-insurance liability was $10.7 million and $8.6 million as of December 28, 2019 and December 29, 2018, respectively, and is included in “Other accrued expenses” in the consolidated balance sheets. The long-term portion was $6.1 million and $5.7 million as of December 28, 2019 and December 29, 2018, 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. Participating securities include non-vested shares of restricted stock in which the participants have non-forfeitable rights to dividends during the performance period. Diluted EPS includes the effects of stock options. The following table sets forth the computation of basic and diluted EPS for continuing operations: (In thousands, except per share amounts) 2019 2018 2017 Numerator: Earnings (loss) from continuing operations $ 5,917 $ 33,791 $ (52,617 ) Adjustment for (earnings) loss attributable to participating securities (149 ) (746 ) 908 Earnings (loss) from continuing operations used in calculating earnings per share $ 5,768 $ 33,045 $ (51,709 ) Denominator: Weighted average shares outstanding, including participating securities 36,271 36,012 37,419 Adjustment for participating securities (912 ) (795 ) (646 ) Shares used in calculating basic earnings per share 35,359 35,217 36,773 Effect of dilutive stock options — 10 — Shares used in calculating diluted earnings per share 35,359 35,227 36,773 Basic (loss) earnings per share from continuing operations $ 0.16 $ 0.94 $ (1.41 ) Diluted (loss) earnings per share from continuing operations $ 0.16 $ 0.94 $ (1.41 ) Weighted average shares issuable upon the exercise of stock options that were not included in the EPS calculations because they were anti-dilutive were 75,159 for 2017. There were no anti-dilutive stock options in 2019 or 2018. |
Stock-Based Compensation | Stock-Based 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 restricted stock units. The value of the portion of awards expected to vest is recognized as expense over the requisite service period. |
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 28, 2019 and December 29, 2018, 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 $39.3 million, $40.9 million and $43.4 million in 2019, 2018 and 2017, respectively. |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)(“AOCI”): The Company reports comprehensive income (loss) that includes net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to expenses, gains and losses that are not included in net earnings, such as pension and other postretirement liability adjustments, but rather are recorded directly to shareholders’ equity. These amounts are also presented in the consolidated statements of comprehensive income. The Company’s pension plan was terminated and benefit obligations were satisfied in 2019, and as of December 28, 2019 AOCI relates to the Company’s other postretirement plans. |
Discontinued operations | Discontinued operations: Certain of the Company’s Food Distribution and Retail operations are classified as discontinued operations. Results of discontinued operations are excluded from the accompanying notes to the consolidated financial statements for all periods presented, unless otherwise noted. Results of discontinued operations reported on the consolidated statements of operations are reported net of tax. |
Adoption of New Accounting Standards and Recently Issued Accounting Standards | Adoption of New Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases.” The FASB subsequently issued ASUs 2018-01, 2018-10, 2018-11, and 2019-01, which include clarifications and provide various practical expedients and transition options related to ASU 2016-02. ASU 2016-02 provides guidance for lease accounting and stipulates that lessees need to recognize a right-of-use asset and a lease liability for substantially all leases (other than leases that meet the definition of a short-term lease). The liability is equal to the present value of future rent payments. Treatment in the consolidated statements of operations is similar to the previous treatment of operating and capital leases. In the first quarter of 2019, the Company adopted this standard using the alternative transition method provided in ASU 2018-11, Leases (Topic 842): Targeted Improvements The adoption of the new standard resulted in the recognition of operating lease assets and liabilities of $241.8 million and $292.3 million, respectively, as of the beginning of 2019. The adoption of the standard also resulted in a transition adjustment to beginning of the year retained earnings of $26.9 million (net of deferred tax impact of $8.5 million). The transition adjustment relates to impairment of right of use assets included in previously impaired asset groups and the impact of hindsight on the evaluation of lease term. Remaining differences between lease assets and liabilities relate to the derecognition of lease-related liabilities and assets recorded under ASC 840, which were included in beginning lease liabilities or assets under ASC 842. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers – Topic 606” (“ASC 606”). The new guidance affects any reporting organization that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. As of the beginning of 2018, the Company adopted ASC 606 and all subsequent ASUs that modified ASC 606. From a principal versus agent perspective, the Company determined that certain contracts in the Food Distribution segment that were historically reported on a gross basis are required to be reported on a net basis under the updated guidance, resulting in a corresponding decrease to both net sales and cost of sales from what would have been recognized under previous guidance. The implementation of the guidance had no impact on gross profit, net earnings, the balance sheet, cash flows, equity, or the timing of revenue recognition in current or prior periods. Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments”. ASU 2016-13 changes the impairment model for most financial assets and certain other instruments. Entities will be required to use a forward-looking “expected loss” model that will replace the current “incurred loss” model, which will generally result in the earlier recognition of credit losses. The Company is required to adopt this update in the first quarter of fiscal 2020. The Company has established revised processes and controls to estimate expected losses for trade and other receivables in accordance with the new standard. The standard is expected to result in an increase to the Company’s allowances for trade and other receivables, including the establishment of incremental reserves for pooled receivables as well as additional reserves for specific customers where credit losses are expected. Transition adjustments will be recorded to retained earnings upon adoption In August 2018, the FASB issued ASU 2018-14, “Compensation—Retirement Benefits—Defined Benefit Plans—General: Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans.” The amendments in this ASU remove disclosures that are no longer considered to be cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. The amendments in ASU 2018-14 are effective for fiscal years ending after December 15, 2020 and will be applied on a retrospective basis to all periods presented. The adoption of this guidance is not expected to have a significant effect on the Company’s financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
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) 2019 2018 2017 Balance at beginning of year $ 14,291 $ 15,155 $ 14,730 Expenses 69,253 49,532 54,748 Acquisitions 1,894 — — Claim payments, net of employee contributions (68,658 ) (50,396 ) (54,323 ) Balance at end of year $ 16,780 $ 14,291 $ 15,155 |
Schedule of Computation of Basic and Diluted EPS for Continuing Operations | The following table sets forth the computation of basic and diluted EPS for continuing operations: (In thousands, except per share amounts) 2019 2018 2017 Numerator: Earnings (loss) from continuing operations $ 5,917 $ 33,791 $ (52,617 ) Adjustment for (earnings) loss attributable to participating securities (149 ) (746 ) 908 Earnings (loss) from continuing operations used in calculating earnings per share $ 5,768 $ 33,045 $ (51,709 ) Denominator: Weighted average shares outstanding, including participating securities 36,271 36,012 37,419 Adjustment for participating securities (912 ) (795 ) (646 ) Shares used in calculating basic earnings per share 35,359 35,217 36,773 Effect of dilutive stock options — 10 — Shares used in calculating diluted earnings per share 35,359 35,227 36,773 Basic (loss) earnings per share from continuing operations $ 0.16 $ 0.94 $ (1.41 ) Diluted (loss) earnings per share from continuing operations $ 0.16 $ 0.94 $ (1.41 ) |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
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: 52 Weeks Ended December 28, 2019 (In thousands) Food Distribution Military Retail Total Type of products: Center store (a) $ 1,209,436 $ 1,027,661 $ 928,641 $ 3,165,738 Fresh (b) 1,445,902 636,147 900,096 2,982,145 Non-food (c) 1,247,964 501,642 402,450 2,152,056 Fuel — — 148,779 148,779 Other 79,307 6,657 1,383 87,347 Total $ 3,982,609 $ 2,172,107 $ 2,381,349 $ 8,536,065 Type of customers: Individuals $ — $ — $ 2,380,524 $ 2,380,524 Manufacturers, brokers and distributors 179,872 2,065,919 — 2,245,791 Retailers 3,739,316 99,531 — 3,838,847 Other 63,421 6,657 825 70,903 Total $ 3,982,609 $ 2,172,107 $ 2,381,349 $ 8,536,065 52 Weeks Ended December 29, 2018 (In thousands) Food Distribution Military Retail Total Type of products: Center store (a) $ 1,249,374 $ 1,052,462 $ 747,708 $ 3,049,544 Fresh (b) 1,478,142 602,023 688,661 2,768,826 Non-food (c) 1,185,390 506,177 330,342 2,021,909 Fuel — — 138,617 138,617 Other 78,544 6,181 931 85,656 Total $ 3,991,450 $ 2,166,843 $ 1,906,259 $ 8,064,552 Type of customers: Individuals $ — $ — $ 1,905,328 $ 1,905,328 Manufacturers, brokers and distributors 197,128 2,089,765 — 2,286,893 Retailers 3,733,254 70,897 — 3,804,151 Other 61,068 6,181 931 68,180 Total $ 3,991,450 $ 2,166,843 $ 1,906,259 $ 8,064,552 52 Weeks Ended December 30, 2017 (In thousands) Food Distribution Military Retail Total Type of products: Center store (a) $ 1,206,832 $ 1,054,590 $ 792,925 $ 3,054,347 Fresh (b) 1,456,632 577,084 734,564 2,768,280 Non-food (c) 1,085,282 507,394 336,630 1,929,306 Fuel — — 126,673 126,673 Other 79,163 4,954 1,076 85,193 Total $ 3,827,909 $ 2,144,022 $ 1,991,868 $ 7,963,799 Type of customers: Individuals $ — $ — $ 1,990,792 $ 1,990,792 Manufacturers, brokers and distributors 210,004 2,119,601 — 2,329,605 Retailers 3,556,591 19,467 — 3,576,058 Other 61,314 4,954 1,076 67,344 Total $ 3,827,909 $ 2,144,022 $ 1,991,868 $ 7,963,799 (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. |
Summary of Accounts and Notes Receivable | Accounts and notes receivable are comprised of the following: December 28, December 30, (In thousands) 2019 2018 Customer notes receivable $ 3,363 $ 3,130 Customer accounts receivable 320,958 314,791 Other receivables 23,738 32,516 Allowance for doubtful accounts (2,739 ) (4,177 ) Net current accounts and notes receivable $ 345,320 $ 346,260 Long-term notes receivable 13,335 16,021 Allowance for doubtful accounts (233 ) (120 ) Net long-term notes receivable $ 13,102 $ 15,901 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consist of the following: December 28, December 29, (In thousands) 2019 2018 Land and improvements $ 90,200 $ 76,364 Buildings and improvements 555,049 534,620 Equipment 640,608 605,515 Total property and equipment 1,285,857 1,216,499 Less accumulated depreciation and amortization 670,041 637,439 Property and equipment, net $ 615,816 $ 579,060 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
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 28, 2019 December 29, 2018 Gross Gross Carrying Accumulated Carrying Accumulated (In thousands) Amount Amortization Amount Amortization Non-compete agreements $ 4,438 $ 1,493 $ 3,358 $ 886 Favorable leases (a) — — 7,738 4,282 Pharmacy customer prescription lists 8,200 4,481 6,354 4,377 Customer relationships 57,937 11,497 57,937 7,835 Trade names 1,068 687 1,068 536 Franchise fees and other 1,114 422 1,064 422 Total $ 72,757 $ 18,580 $ 77,519 $ 18,338 (a) Upon the adoption of ASU 2016-02 at the beginning of 2019, favorable leases were reclassified as a component of Operating lease assets within the consolidated balance sheets |
Summary of Weighted Average Amortization Periods for Amortizable Intangible Assets | The weighted average amortization periods for amortizable intangible assets as of December 28, 2019 are as follows: Non-compete agreements 6.1 years Pharmacy customer prescription lists 7.7 years Customer relationships 16.0 years Trade names 7.1 years Franchise fees and other 10.1 years |
Schedule of Estimated Amortization Expense for Future | Estimated amortization expense for each of the five succeeding fiscal years is as follows: (In thousands) 2020 2021 2022 2023 2024 Amortization expense $ 5,662 $ 5,211 $ 4,985 $ 4,879 $ 4,627 |
Food Distribution [Member] | |
Summary of Changes in Carrying Amount of Goodwill | All goodwill relates to the Food Distribution segment. (In thousands) Total Balance at December 30, 2017 and December 29, 2018: $ 178,648 Acquisitions (Note 15) 2,387 Balance at December 28, 2019: $ 181,035 |
Restructuring, Asset Impairme_2
Restructuring, Asset Impairment and Other Charges (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
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 2019, 2018 and 2017. 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. (In thousands) 2019 2018 2017 Balance at beginning of year $ 16,386 $ 17,892 $ 21,932 Provision for closing charges 1,299 4,499 3,852 Provision for severance 447 153 624 Changes in estimates (635 ) (1,181 ) 1,028 Reclassification of lease liabilities (8,177 ) — — Lease termination adjustments (62 ) — (2,600 ) Other — 554 — Accretion expense 271 579 526 Payments (4,541 ) (6,110 ) (7,470 ) Balance at end of year $ 4,988 $ 16,386 $ 17,892 |
Schedule of Restructuring Asset Impairment and Other Charges | Restructuring, asset impairment and other charges included in the consolidated statements of operations consisted of the following: (In thousands) 2019 2018 2017 Asset impairment charges (a) $ 17,925 $ 2,630 $ 33,679 Charge on customer advance (b) 2,351 32,000 — Provision for closing charges 1,299 4,499 3,852 (Gain) loss on sales of assets related to closed facilities (c) (8,532 ) (1,352 ) 998 Provision for severance for closed sites 447 153 624 Other costs associated with distribution center and store closings (d) 2,135 797 1,851 Changes in estimates (e) (635 ) (1,181 ) 1,028 Lease termination adjustments (f) (1,940 ) — (2,600 ) $ 13,050 $ 37,546 $ 39,432 (a) In 2019, asset impairment charges primarily related to Food Distribution segment, including the Caito trade name. In 2018 and 2017, asset impairment charges were incurred primarily in the Retail segment due to the economic and competitive environment of certain stores and in conjunction with the Company’s retail store rationalization plan. (b) The charge on customer advance relates to an advance to an independent retailer customer which was not fully recoverable. See Note 15 “Concentration of Credit Risk” for further discussion. (c) Gain (loss) on sales of assets were primarily related to the sale of a closed Food Distribution warehouse in 2019, a closed Military warehouse and closed Retail stores in 2018 and closed Retail stores in 2017. (d) Other costs associated with distribution center and store closings represent additional costs, including labor, inventory transfer and other administrative costs, incurred in connection with restructuring operations in the Food Distribution and Retail segments. (e) Changes in estimates primarily relate to revised estimates for turnover and other lease ancillary costs associated with previously closed locations, which were generally lower than the initial estimates at certain properties in 2019 and 2018 and reflected the deterioration of the condition of certain properties in 2017. (f) 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. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Debt Instruments | Long-term debt consists of the following: December 28, December 29, (In thousands) 2019 2018 Senior secured revolving credit facility, due December 2023 $ 640,409 $ 600,852 Senior secured term loan, due December 2023 — 60,000 Finance lease obligations (Note 10) 44,966 39,558 Other, 2.61% - 8.75%, due 2020 - 2026 8,633 4,447 Total debt - principal 694,008 704,857 Unamortized debt issuance costs (5,455 ) (6,797 ) Total debt 688,553 698,060 Less current portion 6,349 18,263 Total long-term debt $ 682,204 $ 679,797 |
Schedule of Interest Rate Terms for Each of Aforementioned Tranches | Borrowings under the as either Eurodollar loans or Base Rate loans, . The interest rate terms for each of the aforementioned tranches are as follows: Credit Outstanding as of Facility December 28, 2019 Tranche (In thousands) Eurodollar Rate Base Rate Tranche A $ 609,599 LIBOR plus 1.25% to 1.50% Greater of: (i) the Federal Funds Rate plus 0.75% to 1.00% (ii) the Eurodollar Rate plus 2.25% to 2.50% (iii) the prime rate plus 0.25% to 0.50% Tranche A-1 $ 30,810 LIBOR plus 2.25% to 2.50% Greater of: (i) the Federal Funds Rate plus 1.75% to 2.00% (ii) the Eurodollar 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 28, 2019, aggregate annual maturities and scheduled payments of long-term debt are as follows: (In thousands) 2020 2021 2022 2023 2024 Thereafter Total Total borrowings $ 6,349 $ 4,410 $ 3,830 $ 644,102 $ 3,971 $ 31,346 $ 694,008 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Book Value and Estimated Fair Value of Debt Instruments, Excluding Debt Financing Costs | At December 2 8 , 201 9 and December 29, 2018, the book value and estimated fair value of the Company’s debt instruments, excluding debt financing costs, were as follows: December 28, December 29, (In thousands) 2019 2018 Book value of debt instruments, excluding debt financing costs: Current maturities of long-term debt and finance lease liabilities $ 6,349 $ 18,263 Long-term debt and finance lease liabilities 687,659 686,594 Total book value of debt instruments 694,008 704,857 Fair value of debt instruments, excluding debt financing costs 700,631 705,875 Excess of fair value over book value $ 6,623 $ 1,018 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
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 Landover, Maryland IBT 639 February, 2021 Lima, Ohio IBT 908 January 2022 Bellefontaine, Ohio - GTL Truck Lines, Inc. IBT 908 February 2022 Bellefontaine, Ohio - General Merchandise Service Division IBT 908 February 2022 Norfolk, Virginia IBT 822 April 2022 Columbus, Georgia IBT 528 September 2022 Grand Rapids, Michigan IBT 406 October 2022 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Leases [Abstract] | |
Components of Lease Cost | The components of lease cost were as follows: (In thousands) 2019 Operating lease cost $ 54,798 Short-term lease cost 7,131 Finance lease cost Amortization of assets 3,330 Interest on lease liabilities 3,084 Sublease income (4,014 ) Total net lease cost $ 64,329 |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: December 28, December 29, (In thousands) 2019 2018 Finance leases: Property and equipment, at cost $ 67,206 $ 64,215 Accumulated amortization (27,131 ) (30,774 ) Property and equipment, net $ 40,075 $ 33,441 Current portion of finance lease liabilities $ 4,401 $ 6,840 Noncurrent finance lease liabilities 40,565 32,718 Total finance lease liabilities $ 44,966 $ 39,558 December 28, 2019 Operating leases: Operating lease assets $ 268,982 Current portion of operating lease liabilities $ 42,440 Noncurrent operating lease liabilities 267,350 Total operating lease liabilities $ 309,790 Weighted average remaining lease term: Operating leases 8.9 years Finance leases 9.9 years Weighted average discount rate: Operating leases 5.7 % Finance leases 7.0 % |
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) 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 62,455 Operating cash flows used for finance leases 3,047 Financing cash flows used for finance leases 5,453 Lease assets obtained in exchange for lease liabilities: Total operating lease liabilities 34,346 Total finance lease liabilities 3,679 |
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 28, 2019 are as follows: Operating Finance (In thousands) Leases Leases Total 2020 $ 58,539 $ 7,590 66,129 2021 53,859 6,157 60,016 2022 47,616 5,573 53,189 2023 42,577 5,192 47,769 2024 35,580 5,212 40,792 Thereafter 162,649 38,588 201,237 Total 400,820 68,312 469,132 Less interest 91,030 23,346 114,376 Present value of lease liabilities 309,790 44,966 354,756 Less current portion 42,440 4,401 46,841 Long-term lease liabilities $ 267,350 $ 40,565 $ 307,915 |
Future Lease Commitments Under Operating Leases and Capital Leases Previously Accounted for Under ASC 840 | The Company’s total future lease commitments under operating and capital leases previously accounted for under ASC 840, “Leases”, at December 29, 2018 were as follows: Operating Leases Used in Subleased Capital (In thousands) Operations to Others Total Leases 2019 $ 54,098 $ 1,039 $ 55,137 $ 9,091 2020 47,212 817 48,029 7,049 2021 39,887 694 40,581 5,377 2022 32,299 468 32,767 4,685 2023 25,419 357 25,776 3,912 Thereafter 75,626 147 75,773 25,152 Total $ 274,541 $ 3,522 $ 278,063 55,266 Interest (15,708 ) Present value of minimum lease obligations 39,558 Current maturities 6,840 Long-term capital lease obligations $ 32,718 |
Property and Equipment Owned Assets Leased to Others | Owned assets, included in property and equipment, which are leased to others are as follows: December 28, December 29, (In thousands) 2019 2018 Land and improvements $ 7,077 $ 7,389 Buildings 29,287 28,932 Owned assets leased to others 36,364 36,321 Less accumulated amortization and depreciation 10,895 10,044 Net owned assets leased to others $ 25,469 $ 26,277 |
Future Minimum Rentals to be Received Under Lease Obligations | Future minimum rentals to be received under lease obligations in effect at December 28, 2019 are as follows: (In thousands) 2020 2021 2022 2023 2024 Thereafter Total Owned property $ 4,587 $ 4,344 $ 3,873 $ 2,940 $ 2,037 $ 18,113 $ 35,894 Leased property 3,127 2,636 2,288 1,984 1,400 4,011 15,446 Total $ 7,714 $ 6,980 $ 6,161 $ 4,924 $ 3,437 $ 22,124 $ 51,340 |
Associate Retirement Plans (Tab
Associate Retirement Plans (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Compensation And Retirement Disclosure [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 pension and postretirement benefit plans, excluding multi-employer plans. The prepaid, current accrued, and noncurrent accrued benefit costs associated with pension and postretirement benefits are reported in “Prepaid expenses and other current assets,” “Other assets, net,” “Accrued payroll and benefits,” and “Other long-term liabilities,” respectively, in the consolidated balance sheets. Pension Plan Retiree Medical Plan December 28, December 29, December 28, December 29, (In thousands, except percentages) 2019 2018 2019 2018 Funded Status Projected/Accumulated benefit obligation: Balance at beginning of year $ 73,275 $ 80,153 $ 9,443 $ 10,199 Service cost — — 171 195 Interest cost 1,134 2,283 375 339 Actuarial loss (gain) 618 (1,578 ) 1,181 (961 ) Benefits paid (75,027 ) (7,583 ) (387 ) (329 ) Balance at end of year $ — $ 73,275 $ 10,783 $ 9,443 Fair value of plan assets: Balance at beginning of year $ 74,241 $ 81,255 $ — $ — Actual return (loss) on plan assets 2,282 (931 ) — — Company contributions — 1,500 387 329 Benefits paid (75,027 ) (7,583 ) (387 ) (329 ) Balance at end of year $ 1,496 $ 74,241 $ — $ — Funded (unfunded) status $ 1,496 $ 966 $ (10,783 ) $ (9,443 ) Components of net amount recognized in consolidated balance sheets: Current assets $ 1,496 $ 966 $ — $ — Current liabilities — — (466 ) (437 ) Noncurrent liabilities — — (10,317 ) (9,006 ) Net asset (liability) $ 1,496 $ 966 $ (10,783 ) $ (9,443 ) Amounts recognized in AOCI: Net actuarial loss $ — $ 19,885 $ 1,809 $ 629 Prior service credit — — — (92 ) Accumulated other comprehensive loss $ — $ 19,885 $ 1,809 $ 537 Weighted average assumptions at measurement date: Discount rate N/A 3.48% 3.26% 4.41% Ultimate health care cost trend rate N/A N/A 4.50% 5.00% |
Components of Net Periodic Pension and Postretirement Benefit Cost (Income) | Pension Plan Retiree Medical Plan (In thousands, except percentages) 2019 2018 2017 2019 2018 2017 Components of net periodic benefit (income) cost: Service cost $ — $ — $ — $ 171 $ 195 $ 184 Interest cost 1,134 2,283 2,345 375 339 345 Amortization of prior service cost — — — (92 ) (158 ) (158 ) Expected return on plan assets (714 ) (3,631 ) (3,836 ) — — — Recognized actuarial net loss 691 417 221 — 88 59 Net periodic benefit expense (income) $ 1,111 $ (931 ) $ (1,270 ) $ 454 $ 464 $ 430 Settlement expense 18,244 785 548 — — — Total net periodic benefit cost (income) $ 19,355 $ (146 ) $ (722 ) $ 454 $ 464 $ 430 Weighted average assumptions used to determine net periodic benefit (income) cost: Discount rate 3.48% 3.45% 3.82% 4.41% 3.72% 4.26% Expected return on plan assets 2.80% 4.84% 4.83% N/A N/A N/A |
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: 2019 2018 2017 Post-65 7.50% 8.00% 8.40% |
Summary of Fair Value Pension Plan Asset | The fair values of the Pension Plan assets at December 28, 2019 and December 29, 2018, by asset category, are as follows: Fair Value of Assets as of December 28, 2019 (In thousands) Total Level 1 Level 2 Level 3 NAV (a) Mutual funds $ — $ — $ — $ — $ — Pooled funds — — — — — Money market fund 1,496 — 1,496 — — Guaranteed annuity contracts — — — — — Total fair value $ 1,496 $ — $ 1,496 $ — $ — Fair Value of Assets as of December 29, 2018 (In thousands) Total Level 1 Level 2 Level 3 NAV (a) Mutual funds $ 20,124 $ — $ — $ — $ 20,124 Pooled funds 29,576 — — — 29,576 Money market fund 11,992 — 11,992 — — Guaranteed annuity contracts 12,549 — — 12,549 — Total fair value $ 74,241 $ — $ 11,992 $ 12,549 $ 49,700 (a) Assets are measured at net asset value (“NAV”) (or its equivalent) on a non-active market, and therefore, have not been classified in the fair value hierarchy. |
Summary of Reconciliation of Beginning and Ending Balances for Level 3 Assets | Level 3 assets consist of guaranteed annuity contracts. A reconciliation of the beginning and ending balances for Level 3 assets is as follows: (In thousands) December 28, 2019 December 29, 2018 Balance at beginning of year $ 12,549 $ 13,891 Purchases, sales, issuances and settlements, net (13,112 ) (1,712 ) Interest income 349 588 Unrealized loss (gains) 214 (218 ) Balance at end of year $ — $ 12,549 |
Estimated Benefit Payments Expected to be Paid | The following estimated benefit payments are expected to be paid in the following fiscal years: (In thousands) 2020 2021 2022 2023 2024 2025 to 2029 Post-retirement medical benefits $ 466 $ 503 $ 539 $ 571 $ 597 $ 3,281 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income or Loss (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Equity [Abstract] | |
Schedule Of Accumulated Other Comprehensive Income (Loss) | Changes in AOCI are as follows: (In thousands) 2019 2018 2017 Balance at beginning of the year, net of tax $ (15,759 ) $ (15,136 ) $ (11,437 ) Other comprehensive income (loss) before reclassifications 219 (2,026 ) (2,448 ) Income tax (expense) benefit (55 ) 458 934 Other comprehensive income (loss), net of tax, before reclassifications 164 (1,568 ) (1,514 ) Amortization of amounts included in net periodic benefit cost (a) 18,480 1,204 799 Income tax expense (b) (4,485 ) (259 ) (302 ) Amounts reclassified out of AOCI, net of tax 13,995 945 497 Other comprehensive income (loss), net of tax 14,159 (623 ) (1,017 ) Reclassification of stranded tax effects (c) — — (2,682 ) Balance at end of the year, net of tax $ (1,600 ) $ (15,759 ) $ (15,136 ) (a) Reclassified from AOCI into Other, net, or Selling, general and administrative expense. Amounts include amortization of net actuarial loss, amortization of prior service cost, and settlement expense totaling $18.4 million, $0.9 million and $0.6 million in 2019, 2018 and 2017, respectively. (b) Reclassified from AOCI into Income tax (benefit) expense. (c) Reclassification reflects the impact of ASU 2018-02, which allowed stranded tax effects from the Tax Cuts and Jobs Act to be reclassified from AOCI to retained earnings. |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
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) 2019 2018 2017 Current income tax expense (benefit): Federal $ (899 ) $ (1,607 ) $ 366 State 817 1,107 528 Total current income tax expense (benefit) (82 ) (500 ) 894 Deferred income tax (benefit) expense: Federal 126 8,370 (72,842 ) State (2,386 ) (963 ) (7,079 ) Total deferred income tax (benefit) expense (2,260 ) 7,407 (79,921 ) Total income tax (benefit) expense $ (2,342 ) $ 6,907 $ (79,027 ) |
Reconciliation of Statutory Federal Rate to Effective Rate | A reconciliation of the statutory federal rate to the effective rate is as follows: 2019 2018 2017 Federal statutory income tax rate 21.0 % 21.0 % 35.0 % Stock compensation 7.2 0.7 1.0 Non-deductible expenses 0.8 0.6 (0.3 ) Domestic production activities deduction — — 0.1 Federal rate change effect on deferred taxes (a) — (1.2 ) 19.7 Change in tax contingencies — (2.5 ) — Charitable product donations (5.6 ) (0.6 ) 0.4 Other, net (2.4 ) (0.9 ) 0.8 State taxes, net of federal income tax benefit (36.1 ) 1.7 3.1 Tax credits (50.4 ) (1.8 ) 0.2 Effective income tax rate (65.5 ) % 17.0 % 60.0 % (a) On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to reducing the U.S. federal corporate tax rate from 35 percent to 21 percent, |
Summary of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities resulting from temporary differences as of December 28, 2019 and December 29, 2018 are as follows: December 28, December 29, (In thousands) 2019 2018 Deferred tax assets: Employee benefits $ 17,087 $ 17,330 Accrued workers' compensation 1,632 1,402 Allowance for doubtful accounts 10,870 10,171 Intangible assets 1,319 — Restructuring 472 1,806 Deferred revenue 1,678 1,269 Accrued rent 399 3,196 Lease liabilities 85,005 7,843 Accrued insurance 1,007 1,150 Federal net operating loss carryforwards (a) 2,332 — Federal credits (b) 851 — State net operating loss carryforwards (a) 4,498 2,656 All other 4,073 3,917 Total deferred tax assets 131,223 50,740 Deferred tax liabilities: Property and equipment 45,136 43,844 Lease assets 73,191 5,314 Inventory 33,739 32,401 Goodwill 21,404 15,763 Intangible assets — 1,011 All other 864 1,661 Total deferred tax liabilities 174,334 99,994 Net deferred tax liability $ 43,111 $ 49,254 (a) As of December 28, 2019, the Company’s federal net operating loss carryforwards do not expire, and state net operating loss carryforwards in various taxing jurisdictions expire in tax years 2021 through 2039 if not utilized. (b) As of December 28, 2019, the Company’s federal credit carryforwards expire in tax year 2039. |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: December 28, December 29, (In thousands) 2019 2018 Balance at beginning of year $ 1,477 $ 2,408 Gross increases - tax positions taken in prior years 71 163 Gross decreases - tax positions taken in prior years (125 ) (171 ) Gross increases - tax positions taken in current year 850 894 Lapsed statutes of limitations (848 ) (1,817 ) Balance at end of year $ 1,425 $ 1,477 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity | The following table summarizes stock option activity for 2019, 2018 and 2017: Weighted Weighted Average Average Remaining Aggregate Shares Exercise Contractual Intrinsic Value Under Options Price Life Years (in thousands) Options outstanding and exercisable at December 31, 2016 200,517 $ 19.94 1.65 $ 3,929 Exercised (152,589 ) 21.02 1,543 Cancelled/Expired — — Options outstanding and exercisable at December 30, 2017 47,928 16.52 1.07 487 Exercised (20,476 ) 13.87 1,043 Cancelled/Expired (14,400 ) 22.69 Options outstanding and exercisable at December 29, 2018 13,052 13.87 0.37 39 Exercised (13,052 ) 13.87 51 Cancelled/Expired — — Options outstanding and exercisable at December 28, 2019 — $ — — $ — |
Summary of Restricted Stock Activity | The following table summarizes restricted stock activity for 2019, 2018 and 2017: Weighted Average Grant-Date Shares Fair Value Outstanding and nonvested at December 31, 2016 660,143 $ 26.48 Granted 296,297 34.68 Vested (258,183 ) 25.90 Forfeited (84,513 ) 29.11 Outstanding and nonvested at December 30, 2017 613,744 30.32 Granted 482,572 17.00 Vested (260,644 ) 28.89 Forfeited (12,853 ) 23.52 Outstanding and nonvested at December 29, 2018 822,819 23.07 Granted 488,063 17.84 Vested (346,721 ) 23.47 Forfeited (35,428 ) 20.11 Outstanding and nonvested at December 28, 2019 928,733 $ 20.28 |
Summary of Allocation of Stock-Based Compensation Expense in Consolidated Statements of Operations | Stock-based compensation expense recognized and included in “Selling, general and administrative expenses” in the consolidated statements of operations, and related tax benefits were as follows: (In thousands) 2019 2018 2017 Restricted stock $ 7,312 $ 7,646 $ 9,611 Tax benefits (1,303 ) (2,242 ) (3,440 ) Stock-based compensation expense, net of tax $ 6,009 $ 5,404 $ 6,171 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | Supplemental cash flow information is as follows: (In thousands) 2019 2018 2017 Non-cash financing activities: Issuance of note payable as consideration for acquisition $ — $ — $ 2,460 Recognition of investment in direct financing lease — — 2,295 Recognition of finance lease obligations 3,679 3,304 588 Non-cash investing activities: Capital expenditures included in accounts payable 16,111 4,564 5,418 Derecognition of fixed assets under direct financing lease — — 2,295 Finance lease asset additions 3,679 3,304 588 Non-cash acquisition (Note 15) 5,363 — — Acquisition financed through issuance of note payable — — 2,460 Other supplemental cash flow information: Cash paid for interest 33,236 28,138 22,818 Income tax (refunds) payments (9,680 ) 139 10,657 |
Reporting Segment Information (
Reporting Segment Information (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Operating Segment | The following tables set forth information about the Company by reporting segment: Food (In thousands) Distribution Military Retail Total 2019 Net sales to external customers $ 3,982,609 $ 2,172,107 $ 2,381,349 $ 8,536,065 Inter-segment sales 976,372 — — 976,372 Merger/acquisition and integration (122 ) — 1,559 1,437 Restructuring, asset impairment and other charges (gains) 14,844 — (1,794 ) 13,050 Depreciation and amortization 33,396 11,834 43,171 88,401 Operating earnings (loss) 47,416 (9,316 ) 18,842 56,942 Capital expenditures 28,385 6,295 40,135 74,815 2018 Net sales to external customers $ 3,991,450 $ 2,166,843 $ 1,906,259 $ 8,064,552 Inter-segment sales 842,934 — — 842,934 Merger/acquisition and integration 3,581 4 1,352 4,937 Restructuring, asset impairment and other charges (gains) 33,056 (801 ) 5,291 37,546 Depreciation and amortization 32,073 11,968 38,812 82,853 Operating earnings 48,752 5,647 16,113 70,512 Capital expenditures 33,271 3,530 34,694 71,495 2017 Net sales to external customers $ 3,827,909 $ 2,144,022 $ 1,991,868 $ 7,963,799 Inter-segment sales 885,872 — — 885,872 Merger/acquisition and integration 6,244 1,522 335 8,101 Goodwill impairment — — 189,027 189,027 Restructuring, asset impairment and other charges 1,317 500 37,615 39,432 Depreciation and amortization 30,255 11,626 41,359 83,240 Operating earnings (loss) 83,115 6,969 (196,759 ) (106,675 ) Capital expenditures 25,990 6,482 38,434 70,906 December 28, December 29, (In thousands) 2019 2018 Total Assets Food Distribution $ 1,087,307 $ 1,074,125 Military 390,799 405,587 Retail 794,413 489,049 Discontinued operations 3,090 3,151 Total $ 2,275,609 $ 1,971,912 |
Quarterly Financial Informati_2
Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Earnings per share amounts for each quarter are required to be computed independently and may not sum to the amount computed for the total year. 2019 Full Year 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter (In thousands, except per share amounts) 52 Weeks (12 Weeks) (12 Weeks) (12 Weeks) (16 Weeks) Net sales $ 8,536,065 $ 1,997,953 $ 1,999,808 $ 1,995,929 $ 2,542,375 Gross profit 1,243,830 286,733 290,361 289,007 377,729 Merger/acquisition and integration 1,437 73 — 582 782 Restructuring, asset impairment and other charges (gains) 13,050 2,835 1,296 14,581 (5,662 ) Postretirement benefit expense 19,803 126 10,221 8,821 635 Earnings (loss) before income taxes and discontinued operations 3,575 5,104 (1,966 ) (9,708 ) 10,145 Earnings (loss) from continuing operations 5,917 5,473 (310 ) (6,767 ) 7,521 Loss from discontinued operations, net of taxes (175 ) (49 ) (27 ) (47 ) (52 ) Net earnings (loss) $ 5,742 $ 5,424 $ (337 ) $ (6,814 ) $ 7,469 Earnings (loss) from continuing operations per share: Basic $ 0.16 $ 0.15 $ (0.01 ) $ (0.19 ) $ 0.21 Diluted 0.16 0.15 (0.01 ) (0.19 ) 0.21 Net earnings (loss) per share: Basic $ 0.16 $ 0.15 $ (0.01 ) $ (0.19 ) $ 0.21 Diluted 0.16 0.15 (0.01 ) (0.19 ) 0.21 Dividends $ 27,616 $ 6,907 $ 6,905 $ 6,902 $ 6,902 2018 Full Year 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter (In thousands, except per share amounts) (52 Weeks) (12 Weeks) (12 Weeks) (12 Weeks) (16 Weeks) Net sales $ 8,064,552 $ 1,896,796 $ 1,886,730 $ 1,895,953 $ 2,385,073 Gross profit 1,110,406 245,390 256,142 265,660 343,214 Merger/acquisition and integration 4,937 1,406 521 804 2,206 Restructuring, asset impairment and other charges (gains) 37,546 32,277 232 (1,164 ) 6,202 Postretirement benefit expense (income) 159 179 (6 ) (10 ) (4 ) Earnings (loss) before income taxes and discontinued operations 40,698 (19,501 ) 19,919 23,085 17,195 Earnings (loss) from continuing operations 33,791 (14,027 ) 17,545 17,838 12,435 (Loss) earnings from discontinued operations, net of taxes (219 ) 19 (80 ) (66 ) (92 ) Net earnings (loss) $ 33,572 $ (14,008 ) $ 17,465 $ 17,772 $ 12,343 Earnings (loss) from continuing operations per share: Basic $ 0.94 $ (0.39 ) $ 0.49 $ 0.50 $ 0.34 Diluted 0.94 (0.39 ) 0.49 0.50 0.34 Net earnings (loss) per share: Basic $ 0.93 $ (0.39 ) $ 0.49 $ 0.49 $ 0.34 Diluted 0.93 (0.39 ) 0.49 0.49 0.34 Dividends $ 25,923 $ 6,471 $ 6,469 $ 6,457 $ 6,526 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Basis of Presentation - Additional Information (Detail) - USD ($) | Dec. 30, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Significant Accounting Policies And Basis Of Presentation [Line Items] | ||||
Revenue recognition performance obligation on international shipments | $ 0 | |||
Allowance for doubtful accounts | 3,000,000 | $ 4,300,000 | ||
Bad debt expenses | $ 1,500,000 | $ 3,400,000 | $ 1,500,000 | |
Inventories valued on LIFO method | 82.80% | 88.90% | ||
Under Value of carrying value of inventories than its replacement value | $ 60,900,000 | $ 55,100,000 | ||
Effect on income due to change in LIFO valuation on liquidation | 1,500,000 | 1,100,000 | $ 200,000 | |
Capitalized computer software | 35,200,000 | 33,500,000 | ||
Workers' compensation liability | 500,000 | |||
Health care insurance liability | 500,000 | |||
Automobile insurance liability | 1,000,000 | |||
Current portion of self insurance liability | 10,700,000 | 8,600,000 | ||
Long term portion of self insurance liability | $ 6,100,000 | $ 5,700,000 | ||
Weighted average shares not included in EPS calculations | 0 | 0 | 75,159 | |
Issuance of preferred stock | 10,000,000 | 10,000,000 | ||
Preferred stock, shares outstanding | 0 | 0 | ||
Advertising expenses | $ 39,300,000 | $ 40,900,000 | $ 43,400,000 | |
Operating lease assets | 268,982,000 | |||
Operating lease liabilities | 309,790,000 | |||
Retained earnings | $ 198,905,000 | $ 247,642,000 | ||
(ASU 2016-02) [Member] | ||||
Significant Accounting Policies And Basis Of Presentation [Line Items] | ||||
Operating lease assets | $ 241,800,000 | |||
Operating lease liabilities | 292,300,000 | |||
Retained earnings | 26,900,000 | |||
Deferred income tax | $ 8,500,000 | |||
Minimum [Member] | ||||
Significant Accounting Policies And Basis Of Presentation [Line Items] | ||||
Percentage of revenues recognized at a point in time | 99.00% | |||
Reserved expenses paid over remaining lease term | 1 year | |||
Maximum [Member] | ||||
Significant Accounting Policies And Basis Of Presentation [Line Items] | ||||
Reserved expenses paid over remaining lease term | 9 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies and Basis of Presentation - Property And Equipment Estimated Useful Lives (Detail) | 12 Months Ended |
Dec. 28, 2019 | |
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_6
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. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Payables And Accruals [Abstract] | |||
Balance at beginning of year | $ 14,291 | $ 15,155 | $ 14,730 |
Expenses | 69,253 | 49,532 | 54,748 |
Acquisitions | 1,894 | ||
Claim payments, net of employee contributions | (68,658) | (50,396) | (54,323) |
Balance at end of year | $ 16,780 | $ 14,291 | $ 15,155 |
Summary of Significant Accoun_7
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 | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Dec. 28, 2019 | Oct. 05, 2019 | Jul. 13, 2019 | Dec. 29, 2018 | Oct. 06, 2018 | Jul. 14, 2018 | Apr. 20, 2019 | Apr. 21, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Numerator: | |||||||||||
Earnings (loss) from continuing operations | $ 5,473 | $ (310) | $ (6,767) | $ (14,027) | $ 17,545 | $ 17,838 | $ 7,521 | $ 12,435 | $ 5,917 | $ 33,791 | $ (52,617) |
Adjustment for (earnings) loss attributable to participating securities | (149) | (746) | 908 | ||||||||
Earnings (loss) from continuing operations used in calculating earnings per share | $ 5,768 | $ 33,045 | $ (51,709) | ||||||||
Denominator: | |||||||||||
Weighted average shares outstanding, including participating securities | 36,271 | 36,012 | 37,419 | ||||||||
Adjustment for participating securities | (912) | (795) | (646) | ||||||||
Shares used in calculating basic earnings per share | 35,359 | 35,217 | 36,773 | ||||||||
Effect of dilutive stock options | 10 | ||||||||||
Shares used in calculating diluted earnings per share | 35,359 | 35,227 | 36,773 | ||||||||
Basic (loss) earnings per share from continuing operations | $ 0.15 | $ (0.01) | $ (0.19) | $ (0.39) | $ 0.49 | $ 0.50 | $ 0.21 | $ 0.34 | $ 0.16 | $ 0.94 | $ (1.41) |
Diluted (loss) earnings per share from continuing operations | $ 0.15 | $ (0.01) | $ (0.19) | $ (0.39) | $ 0.49 | $ 0.50 | $ 0.21 | $ 0.34 | $ 0.16 | $ 0.94 | $ (1.41) |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) | Dec. 31, 2018USD ($) | Jan. 06, 2017USD ($) | Dec. 28, 2019USD ($)EmployeeStore | Dec. 28, 2019USD ($)EmployeeStore | Dec. 30, 2017USD ($) | Dec. 29, 2018USD ($) |
Business Acquisition [Line Items] | ||||||
Payments to acquire certain assets and assume liabilities in cash | $ 86,659,000 | $ 226,939,000 | ||||
Goodwill | $ 181,035,000 | 181,035,000 | $ 178,648,000 | |||
Food Distribution Segment [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 46,300,000 | 2,400,000 | 2,400,000 | |||
Martin's Super Markets [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Payments to acquire certain assets and assume liabilities in cash | $ 86,700,000 | |||||
Business combination, cash acquired | 7,800,000 | |||||
Business combination, property and equipment acquired | 55,000,000 | |||||
Business combination, Intangible assets acquired | $ 23,900,000 | |||||
Amortization of intangible assets, period | 7 years | |||||
Goodwill | $ 0 | |||||
Merger/acquisition and integration costs | $ 1,300,000 | $ 2,500,000 | ||||
Number of operating stores | Store | 20 | 20 | ||||
Number of employees | Employee | 3,500 | 3,500 | ||||
Martin's Super Markets [Member] | Pharmacy customer prescription lists [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Finite-lived intangible assets acquired | 3,100,000 | |||||
Martin's Super Markets [Member] | Trade Names [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Indefinite-lived intangible assets acquired | $ 20,600,000 | |||||
Caito Foods Service and Blue Ribbon Transport [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Payments to acquire certain assets and assume liabilities in cash | 214,600,000 | |||||
Business combination, cash acquired | 2,500,000 | |||||
Business combination, property and equipment acquired | 76,700,000 | |||||
Business combination, Intangible assets acquired | $ 72,900,000 | |||||
Amortization of intangible assets, period | 15 years | |||||
Business combination, contingent consideration liability maximum reimbursement initial purchase price | $ 15,000,000 |
Revenue - Summary of Informatio
Revenue - Summary of Information about Disaggregated Revenue of Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Dec. 28, 2019 | Oct. 05, 2019 | Jul. 13, 2019 | Dec. 29, 2018 | Oct. 06, 2018 | Jul. 14, 2018 | Apr. 20, 2019 | Apr. 21, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | $ 1,997,953 | $ 1,999,808 | $ 1,995,929 | $ 1,896,796 | $ 1,886,730 | $ 1,895,953 | $ 2,542,375 | $ 2,385,073 | $ 8,536,065 | $ 8,064,552 | $ 7,963,799 |
Center store [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 3,165,738 | 3,049,544 | 3,054,347 | ||||||||
Fresh [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 2,982,145 | 2,768,826 | 2,768,280 | ||||||||
Non-food [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 2,152,056 | 2,021,909 | 1,929,306 | ||||||||
Other Products [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 87,347 | 85,656 | 85,193 | ||||||||
Fuel [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 148,779 | 138,617 | 126,673 | ||||||||
Individuals Customer [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 2,380,524 | 1,905,328 | 1,990,792 | ||||||||
Manufacturers, brokers and distributors [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 2,245,791 | 2,286,893 | 2,329,605 | ||||||||
Retailers [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 3,838,847 | 3,804,151 | 3,576,058 | ||||||||
Other Customers [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 70,903 | 68,180 | 67,344 | ||||||||
Food Distribution [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 3,982,609 | 3,991,450 | 3,827,909 | ||||||||
Food Distribution [Member] | Center store [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 1,209,436 | 1,249,374 | 1,206,832 | ||||||||
Food Distribution [Member] | Fresh [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 1,445,902 | 1,478,142 | 1,456,632 | ||||||||
Food Distribution [Member] | Non-food [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 1,247,964 | 1,185,390 | 1,085,282 | ||||||||
Food Distribution [Member] | Other Products [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 79,307 | 78,544 | 79,163 | ||||||||
Food Distribution [Member] | Manufacturers, brokers and distributors [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 179,872 | 197,128 | 210,004 | ||||||||
Food Distribution [Member] | Retailers [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 3,739,316 | 3,733,254 | 3,556,591 | ||||||||
Food Distribution [Member] | Other Customers [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 63,421 | 61,068 | 61,314 | ||||||||
Military [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 2,172,107 | 2,166,843 | 2,144,022 | ||||||||
Military [Member] | Center store [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 1,027,661 | 1,052,462 | 1,054,590 | ||||||||
Military [Member] | Fresh [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 636,147 | 602,023 | 577,084 | ||||||||
Military [Member] | Non-food [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 501,642 | 506,177 | 507,394 | ||||||||
Military [Member] | Other Products [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 6,657 | 6,181 | 4,954 | ||||||||
Military [Member] | Manufacturers, brokers and distributors [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 2,065,919 | 2,089,765 | 2,119,601 | ||||||||
Military [Member] | Retailers [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 99,531 | 70,897 | 19,467 | ||||||||
Military [Member] | Other Customers [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 6,657 | 6,181 | 4,954 | ||||||||
Retail [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 2,381,349 | 1,906,259 | 1,991,868 | ||||||||
Retail [Member] | Center store [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 928,641 | 747,708 | 792,925 | ||||||||
Retail [Member] | Fresh [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 900,096 | 688,661 | 734,564 | ||||||||
Retail [Member] | Non-food [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 402,450 | 330,342 | 336,630 | ||||||||
Retail [Member] | Other Products [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 1,383 | 931 | 1,076 | ||||||||
Retail [Member] | Fuel [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 148,779 | 138,617 | 126,673 | ||||||||
Retail [Member] | Individuals Customer [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 2,380,524 | 1,905,328 | 1,990,792 | ||||||||
Retail [Member] | Other Customers [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | $ 825 | $ 931 | $ 1,076 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Disaggregation Of Revenue [Line Items] | |
Revenue recognition performance obligation | $ 0 |
Revenue, remaining performance obligation, optional exemption, performance obligation | true |
Revenue recognition payment terms | 30 days |
Contract assets | $ 0 |
Maximum [Member] | |
Disaggregation Of Revenue [Line Items] | |
Revenue recognition contract terms | 1 year |
Revenue - Summary of Accounts a
Revenue - Summary of Accounts and Notes Receivable (Detail) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 30, 2018 | Dec. 29, 2018 |
Receivables [Abstract] | |||
Customer notes receivable | $ 3,363 | $ 3,130 | |
Customer accounts receivable | 320,958 | 314,791 | |
Other receivables | 23,738 | 32,516 | |
Allowance for doubtful accounts | (2,739) | (4,177) | |
Net current accounts and notes receivable | 345,320 | 346,260 | $ 346,260 |
Long-term notes receivable | 13,335 | 16,021 | |
Allowance for doubtful accounts | (233) | (120) | |
Net long-term notes receivable | $ 13,102 | $ 15,901 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 1,285,857 | $ 1,216,499 |
Less accumulated depreciation and amortization | 670,041 | 637,439 |
Property and equipment, net | 615,816 | 579,060 |
Land and Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 90,200 | 76,364 |
Buildings and Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 555,049 | 534,620 |
Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 640,608 | $ 605,515 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Summary of Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | 24 Months Ended |
Dec. 28, 2019 | Dec. 28, 2019 | |
Goodwill [Line Items] | ||
Beginning Balance | $ 178,648 | |
Ending Balance | 181,035 | $ 181,035 |
Food Distribution [Member] | ||
Goodwill [Line Items] | ||
Beginning Balance | 178,648 | 178,648 |
Acquisitions (Note 15) | 2,387 | 2,387 |
Ending Balance | $ 181,035 | $ 181,035 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Oct. 07, 2017 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Goodwill And Other Intangible Assets [Line Items] | ||||
Weighted average cost of capital | 9.90% | |||
Goodwill impairment | $ 189,027 | |||
Amortization expenses of intangible assets | $ 5,800 | $ 5,800 | 5,500 | |
Indefinite lived intangible assets not amortized | $ 76,300 | $ 69,700 | ||
Retail [Member] | ||||
Goodwill And Other Intangible Assets [Line Items] | ||||
Goodwill impairment | $ 189,000 | $ 189,027 |
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. 28, 2019 | Dec. 29, 2018 | |
Finite Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 72,757 | $ 77,519 | |
Accumulated Amortization | 18,580 | 18,338 | |
Non-compete agreements [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 4,438 | 3,358 | |
Accumulated Amortization | 1,493 | 886 | |
Favorable leases [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | [1] | 7,738 | |
Accumulated Amortization | [1] | 4,282 | |
Pharmacy customer prescription lists [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 8,200 | 6,354 | |
Accumulated Amortization | 4,481 | 4,377 | |
Customer relationships [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 57,937 | 57,937 | |
Accumulated Amortization | 11,497 | 7,835 | |
Trade Names [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1,068 | 1,068 | |
Accumulated Amortization | 687 | 536 | |
Franchise fees and other [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1,114 | 1,064 | |
Accumulated Amortization | $ 422 | $ 422 | |
[1] | (a) Upon the adoption of ASU 2016-02 at the beginning of 2019, favorable leases were reclassified as a component of Operating lease assets within the consolidated balance sheets |
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. 28, 2019 | |
Non-compete agreements [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Life | 6 years 1 month 6 days |
Pharmacy customer prescription lists [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Life | 7 years 8 months 12 days |
Customer relationships [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Life | 16 years |
Trade Names [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Life | 7 years 1 month 6 days |
Franchise fees and other [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Life | 10 years 1 month 6 days |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization Expense for Future (Detail) $ in Thousands | Dec. 28, 2019USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2020 | $ 5,662 |
2021 | 5,211 |
2022 | 4,985 |
2023 | 4,879 |
2024 | $ 4,627 |
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. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Restructuring Cost And Reserve [Line Items] | |||
Beginning balance | $ 16,386 | $ 17,892 | $ 21,932 |
Provision for severance | 447 | 153 | 624 |
Changes in estimates | (635) | (1,181) | 1,028 |
Reclassification of lease liabilities | (8,177) | ||
Lease termination adjustments | (62) | (2,600) | |
Other | 554 | ||
Accretion expense | 271 | 579 | 526 |
Payments | (4,541) | (6,110) | (7,470) |
Ending balance | 4,988 | 16,386 | 17,892 |
Business Restructuring Reserves [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Provision for closing charges | $ 1,299 | $ 4,499 | $ 3,852 |
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. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Restructuring Cost And Reserve [Line Items] | |||
Asset impairment charges | $ 17,925 | $ 2,630 | $ 33,679 |
Charge on customer advance | 2,351 | 32,000 | |
(Gain) loss on sales of assets related to closed facilities | (6,458) | (106) | (160) |
Provision for severance | 447 | 153 | 624 |
Other costs associated with distribution center and store closings | 2,135 | 797 | 1,851 |
Changes in estimates | (635) | (1,181) | 1,028 |
Lease termination adjustments | (1,940) | (2,600) | |
Restructuring and asset impairment | 13,050 | 37,546 | 39,432 |
Business Restructuring Reserves [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Provision for closing charges | 1,299 | 4,499 | 3,852 |
Facility Closing [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
(Gain) loss on sales of assets related to closed facilities | $ (8,532) | $ (1,352) | $ 998 |
Restructuring, Asset Impairme_5
Restructuring, Asset Impairment and Other Charges - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Restructuring Cost And Reserve [Line Items] | |||
Fair value of indefinite lived intangible assets | $ 76,300 | $ 69,700 | |
Impairment charges | 17,925 | $ 2,630 | $ 33,679 |
Fair Value Measurements Nonrecurring [Member] | Significant unobservable inputs (Level 3) [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Long-lived assets | 32,800 | ||
Long-lived assets measured fair value on nonrecurring basis | 28,900 | ||
Impairment charges | 3,900 | ||
Food Distribution Segment [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Impairment of long-lived assets to be disposed of | 2,400 | ||
Trade Names [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Book value of indefinite lived intangible assets | 35,500 | ||
Fair value of indefinite lived intangible assets | 21,500 | ||
Impairment of indefinite lived intangible assets | $ 14,000 |
Long-Term Debt - Summary of Deb
Long-Term Debt - Summary of Debt Instruments (Detail) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Debt Instrument [Line Items] | ||
Finance lease obligations | $ 44,966 | $ 39,558 |
Other, 2.61% - 8.75%, due 2020 - 2026 | 8,633 | 4,447 |
Total debt - principal | 694,008 | 704,857 |
Unamortized debt issuance costs | (5,455) | (6,797) |
Total debt | 688,553 | 698,060 |
Less current portion | 6,349 | 18,263 |
Total long-term debt | 682,204 | 679,797 |
Senior Secured Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Senior secured term loan, due December 2023 | 60,000 | |
Senior Secured Revolving Credit Facility | Revolving credit agreement [Member] | ||
Debt Instrument [Line Items] | ||
Senior secured revolving credit facility, due December 2023 | $ 640,409 | $ 600,852 |
Long-Term Debt - Summary of D_2
Long-Term Debt - Summary of Debt Instruments (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 28, 2019 | Dec. 31, 2018 | |
Senior Secured Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Notes maturity date | Dec. 18, 2023 | Dec. 18, 2023 |
Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Other debt, due date, start | 2020 | 2020 |
Other debt, due date, end | 2026 | 2026 |
Long-term Debt [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate Range | 2.61% | 2.61% |
Long-term Debt [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate Range | 8.75% | 8.75% |
Senior Secured Revolving Credit Facility | Revolving credit agreement [Member] | ||
Debt Instrument [Line Items] | ||
Notes maturity date | Dec. 18, 2023 | Dec. 18, 2023 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Dec. 18, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||||
Unused portion of loan commitments rate | 0.25% | |||
Maintenance of excess borrowing base | 10.00% | |||
Current borrowing available under credit facility | $ 236,800,000 | $ 262,000,000 | ||
Weighted average interest rate of convertible senior notes | 4.56% | |||
Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Additional borrowings available under credit facility | $ 325,000,000 | |||
Tranche A [Member] | Minimum [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
LIBOR plus interest rate | 1.25% | |||
Tranche A [Member] | Maximum [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
LIBOR plus interest rate | 1.50% | |||
Tranche A-1 [Member] | Minimum [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
LIBOR plus interest rate | 2.25% | |||
Tranche A-1 [Member] | Maximum [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
LIBOR plus interest rate | 2.50% | |||
Revolving credit agreement [Member] | Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes maturity date | Dec. 20, 2021 | |||
Revolving credit agreement [Member] | Credit Agreement [Member] | Extended Maturity [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes maturity date | Dec. 18, 2023 | |||
Revolving credit agreement [Member] | Tranche A [Member] | Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Available borrowings under credit facility | $ 975,000,000 | $ 900,000,000 | ||
Revolving credit agreement [Member] | Tranche A-1 [Member] | Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Available borrowings under credit facility | $ 40,000,000 | |||
Revolving credit agreement [Member] | Tranche A-1 [Member] | Credit Agreement [Member] | Minimum [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
LIBOR plus interest rate | 2.25% | |||
Revolving credit agreement [Member] | Tranche A-1 [Member] | Credit Agreement [Member] | Maximum [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
LIBOR plus interest rate | 2.50% | |||
Revolving credit agreement [Member] | Tranche A-2 [Member] | Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Available borrowings under credit facility | $ 60,000,000 | |||
Letter of credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Unused borrowing capacity | $ 11,700,000 | $ 11,700,000 |
Long-Term Debt - Schedule of In
Long-Term Debt - Schedule of Interest Rate Terms for Each of Aforementioned Tranches (Detail) $ in Thousands | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Tranche A [Member] | |
Debt Instrument [Line Items] | |
Outstanding | $ 609,599 |
Tranche A [Member] | Minimum [Member] | LIBOR [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate | 1.25% |
Tranche A [Member] | Minimum [Member] | Federal Funds Effective Swap Rate [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate | 0.75% |
Tranche A [Member] | Minimum [Member] | Eurodollar [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate | 2.25% |
Tranche A [Member] | Minimum [Member] | Prime Rate [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate | 0.25% |
Tranche A [Member] | Maximum [Member] | LIBOR [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate | 1.50% |
Tranche A [Member] | Maximum [Member] | Federal Funds Effective Swap Rate [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate | 1.00% |
Tranche A [Member] | Maximum [Member] | Eurodollar [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate | 2.50% |
Tranche A [Member] | Maximum [Member] | Prime Rate [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate | 0.50% |
Tranche A-1 [Member] | |
Debt Instrument [Line Items] | |
Outstanding | $ 30,810 |
Tranche A-1 [Member] | Minimum [Member] | LIBOR [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate | 2.25% |
Tranche A-1 [Member] | Minimum [Member] | Federal Funds Effective Swap Rate [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate | 1.75% |
Tranche A-1 [Member] | Minimum [Member] | Eurodollar [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate | 2.25% |
Tranche A-1 [Member] | Minimum [Member] | Prime Rate [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate | 1.25% |
Tranche A-1 [Member] | Maximum [Member] | LIBOR [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate | 2.50% |
Tranche A-1 [Member] | Maximum [Member] | Federal Funds Effective Swap Rate [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate | 2.00% |
Tranche A-1 [Member] | Maximum [Member] | Eurodollar [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate | 2.50% |
Tranche A-1 [Member] | Maximum [Member] | Prime Rate [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate | 1.50% |
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. 28, 2019 | Dec. 29, 2018 |
Long Term Debt [Abstract] | ||
2020 | $ 6,349 | |
2021 | 4,410 | |
2022 | 3,830 | |
2023 | 644,102 | |
2024 | 3,971 | |
Thereafter | 31,346 | |
Total debt - principal | $ 694,008 | $ 704,857 |
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. 28, 2019 | Dec. 29, 2018 |
Book value of debt instruments, excluding debt financing costs: | ||
Current maturities of long-term debt and finance lease liabilities | $ 6,349 | $ 18,263 |
Long-term debt and finance lease liabilities | 687,659 | 686,594 |
Total debt - principal | 694,008 | 704,857 |
Fair value of debt instruments, excluding debt financing costs | 700,631 | 705,875 |
Excess of fair value over book value | $ 6,623 | $ 1,018 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | Dec. 28, 2019USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Contingent consideration provisions outstanding | $ 0 |
Caito and BRT [Member] | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Fair value of acquisition contingencies, received | $ 15,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019USD ($)Employer | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | |
Loss Contingencies [Line Items] | |||
Rents received from subleases | $ | $ 4 | $ 3.6 | $ 3.4 |
Percentage of associates represent by union | 7.00% | ||
Critical and declining zone fund status | Less than 65 percent | ||
Number of employers contributing to plan | Employer | 1 | ||
Minimum [Member] | |||
Loss Contingencies [Line Items] | |||
Projected insolvent period based on active to inactive participants ratio | 15 years | ||
Maximum [Member] | |||
Loss Contingencies [Line Items] | |||
Status or critical and declining zone plans | 65.00% | ||
Projected insolvent period based on active to inactive participants ratio | 20 years |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Unions Representing Employees and the Expiration Date for Agreements (Detail) | 12 Months Ended |
Dec. 28, 2019 | |
Norfolk Virginia [Member] | |
Commitments And Contingencies [Line Items] | |
Union Locals | IBT 822 |
Expiration Dates | 2022-04 |
Bellefontaine, Ohio GTL Truck Lines, Inc. [Member] | |
Commitments And Contingencies [Line Items] | |
Union Locals | IBT 908 |
Expiration Dates | 2022-02 |
Bellefontaine Ohio General Merchandise Service Division [Member] | |
Commitments And Contingencies [Line Items] | |
Union Locals | IBT 908 |
Expiration Dates | 2022-02 |
Columbus Georgia [Member] | |
Commitments And Contingencies [Line Items] | |
Union Locals | IBT 528 |
Expiration Dates | 2022-09 |
Landover Maryland [Member] | |
Commitments And Contingencies [Line Items] | |
Union Locals | IBT 639 |
Expiration Dates | 2021-02 |
Grand Rapids Michigan [Member] | |
Commitments And Contingencies [Line Items] | |
Union Locals | IBT 406 |
Expiration Dates | 2022-10 |
Lima Ohio [Member] | |
Commitments And Contingencies [Line Items] | |
Union Locals | IBT 908 |
Expiration Dates | 2022-01 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Lessee Lease Description [Line Items] | |||
Rental expense, net of sublease income, under operating leases | $ 58 | $ 51.5 | |
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) $ in Thousands | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 54,798 |
Short-term lease cost | 7,131 |
Finance lease cost | |
Amortization of assets | 3,330 |
Interest on lease liabilities | 3,084 |
Sublease income | (4,014) |
Total net lease cost | $ 64,329 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Finance leases: | ||
Property and equipment, at cost | $ 67,206 | $ 64,215 |
Accumulated amortization | (27,131) | (30,774) |
Property and equipment, net | $ 40,075 | $ 33,441 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | us-gaap:PropertyPlantAndEquipmentNet |
Current portion of finance lease liabilities | $ 4,401 | $ 6,840 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | sptn:LongTermDebtAndFinanceLeaseLiabilityCurrent | sptn:LongTermDebtAndFinanceLeaseLiabilityCurrent |
Noncurrent finance lease liabilities | $ 40,565 | $ 32,718 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | sptn:LongTermDebtAndFinanceLeaseLiabilityNoncurrent | sptn:LongTermDebtAndFinanceLeaseLiabilityNoncurrent |
Total finance lease liabilities | $ 44,966 | $ 39,558 |
Operating leases: | ||
Operating lease assets | 268,982 | |
Current portion of operating lease liabilities | 42,440 | |
Noncurrent operating lease liabilities | 267,350 | |
Total operating lease liabilities | $ 309,790 | |
Weighted average remaining lease term: | ||
Operating leases | 8 years 10 months 24 days | |
Finance leases | 9 years 10 months 24 days | |
Weighted average discount rate: | ||
Operating leases | 5.70% | |
Finance leases | 7.00% |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Cash Flow and Other Information Related to Leases (Detail) $ in Thousands | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows used for operating leases | $ 62,455 |
Operating cash flows used for finance leases | 3,047 |
Financing cash flows used for finance leases | 5,453 |
Lease assets obtained in exchange for lease liabilities: | |
Total operating lease liabilities | 34,346 |
Total finance lease liabilities | $ 3,679 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities Under Operating and Finance Leases (Detail) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Leases [Abstract] | ||
Operating Leases, 2020 | $ 58,539 | |
Operating Leases, 2021 | 53,859 | |
Operating Leases, 2022 | 47,616 | |
Operating Leases, 2023 | 42,577 | |
Operating Leases, 2024 | 35,580 | |
Operating Leases, Thereafter | 162,649 | |
Operating Leases, Total | 400,820 | |
Operating Leases, Less interest | 91,030 | |
Total operating lease liabilities | 309,790 | |
Operating Leases, Less current portion | 42,440 | |
Operating Leases, Long-term lease liabilities | 267,350 | |
Finance Leases, 2020 | 7,590 | |
Finance Leases, 2021 | 6,157 | |
Finance Leases, 2022 | 5,573 | |
Finance Leases, 2023 | 5,192 | |
Finance Leases, 2024 | 5,212 | |
Finance Leases, Thereafter | 38,588 | |
Finance Leases, Total | 68,312 | |
Finance Leases, Less interest | 23,346 | |
Total finance lease liabilities | 44,966 | $ 39,558 |
Finance Leases, Less current portion | 4,401 | 6,840 |
Finance Leases, Long-term lease liabilities | 40,565 | $ 32,718 |
Operating and Finance Leases, 2020 | 66,129 | |
Operating and Finance Leases, 2021 | 60,016 | |
Operating and Finance Leases, 2022 | 53,189 | |
Operating and Finance Leases, 2023 | 47,769 | |
Operating and Finance Leases, 2024 | 40,792 | |
Operating and Finance Leases, Thereafter | 201,237 | |
Operating and Finance Leases, Total | 469,132 | |
Operating and Finance Leases, Less interest | 114,376 | |
Operating and Finance Leases, Present value of lease liabilities | 354,756 | |
Operating and Finance Leases, Less current portion | 46,841 | |
Operating and Finance Leases, Long-term lease liabilities | $ 307,915 |
Leases - Future Lease Commitmen
Leases - Future Lease Commitments Under Operating Leases and Capital Leases Previously Accounted for Under ASC 840 (Detail) $ in Thousands | Dec. 29, 2018USD ($) |
Operating Leased Assets [Line Items] | |
Capital Leases, 2019 | $ 9,091 |
Capital Leases, 2020 | 7,049 |
Capital Leases, 2021 | 5,377 |
Capital Leases, 2022 | 4,685 |
Capital Leases, 2023 | 3,912 |
Capital Leases, Thereafter | 25,152 |
Capital Leases, Total | 55,266 |
Capital Leases, Interest | (15,708) |
Capital Leases, Present value of minimum lease obligations | 39,558 |
Capital Leases, Current maturities | 6,840 |
Capital Leases, Long-term capital lease obligations | 32,718 |
Operating Leases, 2019 | 55,137 |
Operating Leases, 2020 | 48,029 |
Operating Leases, 2021 | 40,581 |
Operating Leases, 2022 | 32,767 |
Operating Leases, 2023 | 25,776 |
Operating Leases, Thereafter | 75,773 |
Operating Leases, Total | 278,063 |
Used in Operations [Member] | |
Operating Leased Assets [Line Items] | |
Operating Leases, 2019 | 54,098 |
Operating Leases, 2020 | 47,212 |
Operating Leases, 2021 | 39,887 |
Operating Leases, 2022 | 32,299 |
Operating Leases, 2023 | 25,419 |
Operating Leases, Thereafter | 75,626 |
Operating Leases, Total | 274,541 |
Subleased to Others [Member] | |
Operating Leased Assets [Line Items] | |
Operating Leases, 2019 | 1,039 |
Operating Leases, 2020 | 817 |
Operating Leases, 2021 | 694 |
Operating Leases, 2022 | 468 |
Operating Leases, 2023 | 357 |
Operating Leases, Thereafter | 147 |
Operating Leases, Total | $ 3,522 |
Leases - Property and Equipment
Leases - Property and Equipment Owned Assets Leased to Others (Detail) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Lessor Lease Description [Line Items] | ||
Property and equipment, owned assets leased to others | $ 36,364 | $ 36,321 |
Less accumulated amortization and depreciation | 10,895 | 10,044 |
Net owned assets leased to others | 25,469 | 26,277 |
Land and improvements [Member] | ||
Lessor Lease Description [Line Items] | ||
Property and equipment, owned assets leased to others | 7,077 | 7,389 |
Buildings [Member] | ||
Lessor Lease Description [Line Items] | ||
Property and equipment, owned assets leased to others | $ 29,287 | $ 28,932 |
Leases - Future Minimum Rentals
Leases - Future Minimum Rentals to be Received Under Lease Obligations (Detail) $ in Thousands | Dec. 28, 2019USD ($) |
Schedule of Leases Future Minimum Payments Receivable [Line Items] | |
Operating Lease, 2020 | $ 7,714 |
Operating Lease, 2021 | 6,980 |
Operating Lease, 2022 | 6,161 |
Operating Lease, 2023 | 4,924 |
Operating Lease, 2024 | 3,437 |
Operating Lease, Thereafter | 22,124 |
Operating Lease, Total | 51,340 |
Owned Property [Member] | |
Schedule of Leases Future Minimum Payments Receivable [Line Items] | |
Operating Lease, 2020 | 4,587 |
Operating Lease, 2021 | 4,344 |
Operating Lease, 2022 | 3,873 |
Operating Lease, 2023 | 2,940 |
Operating Lease, 2024 | 2,037 |
Operating Lease, Thereafter | 18,113 |
Operating Lease, Total | 35,894 |
Leased Property [Member] | |
Schedule of Leases Future Minimum Payments Receivable [Line Items] | |
Operating Lease, 2020 | 3,127 |
Operating Lease, 2021 | 2,636 |
Operating Lease, 2022 | 2,288 |
Operating Lease, 2023 | 1,984 |
Operating Lease, 2024 | 1,400 |
Operating Lease, Thereafter | 4,011 |
Operating Lease, Total | $ 15,446 |
Associate Retirement Plans - Ad
Associate Retirement Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plans expense | $ 11,500,000 | $ 7,000,000 | $ 7,900,000 |
Cash surrender value of plan assets included in other long term assets | $ 82,660,000 | 84,182,000 | |
Aggregate amount of life insurance coverage | 15,000,000 | ||
Distribution charges | 3,300,000 | 2,600,000 | |
Defined contribution plan employees minimum period of service | 10 years | ||
Defined contribution plan employees age to eligible under the plan | 55 years | ||
Maximum age of major medical insurance with deductible and coinsurance provisions | 65 years | ||
Multiplier effect of Monthly postretirement health care benefits to covered employees | $ 5 | ||
Actuarial gains and losses are amortized when accumulation of such gains and losses exceeds | 10.00% | ||
Multiemployer plans, certified zone status | Red | ||
Critical and declining zone fund status | Less than 65 percent | ||
Michigan Conference of Teamsters and Ohio Conference of Teamsters Health and Welfare Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension contributions during last plan year | $ 13,800,000 | 13,800,000 | 14,100,000 |
Central States, Southeast and Southwest Areas Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension contributions during last plan year | $ 14,000,000 | 13,300,000 | 13,400,000 |
Collective bargaining arrangement description | The Company is party to four CBAs that require contributions to the Plan with expiration dates ranging from January 2022 to October 2022. These CBAs cover warehouse personnel and drivers in Grand Rapids, Michigan and Bellefontaine and Lima, Ohio. | ||
Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
1% increase or decrease in assumed health care cost trend rate in accumulated postretirement benefit obligation | $ 100,000 | ||
Status or critical and declining zone plans | 65.00% | ||
Projected insolvent period based on active to inactive participants ratio. | 20 years | ||
Maximum [Member] | Central States, Southeast and Southwest Areas Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expiration dates of collective bargaining arrangements | Oct. 31, 2022 | ||
Percentage representing contribution funded to plan total contribution | 5.00% | ||
Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected insolvent period based on active to inactive participants ratio. | 15 years | ||
Minimum [Member] | Central States, Southeast and Southwest Areas Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expiration dates of collective bargaining arrangements | Jan. 31, 2022 | ||
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plans expense | $ 1,500,000 | ||
Frozen pension plan, termination date | Jul. 31, 2018 | ||
Pre-tax settlement charges | $ 18,200,000 | ||
Defined benefit termination plan | 18,000,000 | ||
Distribution charges | 72,600,000 | ||
Settlement accounting charges | 18,244,000 | 785,000 | 548,000 |
Standard pension funding carryover | 1,500,000 | ||
Retiree Medical Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Standard pension funding carryover | 1,800,000 | 329,000 | $ 387,000 |
Expected Company contribution in 2020 | 500,000 | ||
Cash Surrender Value [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash surrender value of plan assets included in other long term assets | $ 4,300,000 | $ 4,300,000 |
Associate Retirement Plans - Sc
Associate Retirement Plans - Schedule of Benefit Obligations, Pension & Other Long-Term Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Fair value of plan assets: | |||
Balance at beginning of year | $ 74,241 | ||
Balance at end of year | 1,496 | $ 74,241 | |
Pension Plan [Member] | |||
Projected/Accumulated benefit obligation: | |||
Balance at beginning of year | 73,275 | 80,153 | |
Interest cost | 1,134 | 2,283 | $ 2,345 |
Actuarial loss (gain) | 618 | (1,578) | |
Benefits paid | (75,027) | (7,583) | |
Balance at end of year | 73,275 | 80,153 | |
Fair value of plan assets: | |||
Balance at beginning of year | 74,241 | 81,255 | |
Actual return (loss) on plan assets | 2,282 | (931) | |
Company contributions | 1,500 | ||
Benefits paid | (75,027) | (7,583) | |
Balance at end of year | 1,496 | 74,241 | 81,255 |
Funded (unfunded) status | 1,496 | 966 | |
Components of net amount recognized in financial position: | |||
Current assets | 1,496 | 966 | |
Net asset (liability) | 1,496 | 966 | |
Amounts recognized in AOCI: | |||
Net actuarial loss | 19,885 | ||
Accumulated other comprehensive loss | $ 19,885 | ||
Weighted average assumptions at measurement date: | |||
Discount rate | 3.48% | ||
Retiree Medical Plan [Member] | |||
Projected/Accumulated benefit obligation: | |||
Balance at beginning of year | 9,443 | $ 10,199 | |
Service cost | 171 | 195 | 184 |
Interest cost | 375 | 339 | 345 |
Actuarial loss (gain) | 1,181 | (961) | |
Benefits paid | (387) | (329) | |
Balance at end of year | 10,783 | 9,443 | 10,199 |
Fair value of plan assets: | |||
Company contributions | 1,800 | 329 | 387 |
Benefits paid | (387) | (329) | |
Funded (unfunded) status | $ (10,783) | (9,443) | |
Components of net amount recognized in financial position: | |||
Current liabilities | (437) | (466) | |
Noncurrent liabilities | (9,006) | (10,317) | |
Net asset (liability) | (9,443) | (10,783) | |
Amounts recognized in AOCI: | |||
Net actuarial loss | 629 | 1,809 | |
Prior service credit | (92) | ||
Accumulated other comprehensive loss | $ 537 | $ 1,809 | |
Weighted average assumptions at measurement date: | |||
Discount rate | 4.41% | 3.26% | |
Ultimate health care cost trend rate | 5.00% | 4.50% |
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. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | $ 1,134 | $ 2,283 | $ 2,345 |
Expected return on plan assets | (714) | (3,631) | (3,836) |
Recognized actuarial net loss | 691 | 417 | 221 |
Net periodic benefit expense (income) | 1,111 | (931) | (1,270) |
Settlement expense | 18,244 | 785 | 548 |
Total net periodic benefit cost (income) | $ 19,355 | $ (146) | $ (722) |
Weighted average assumptions at measurement date: | |||
Discount rate | 3.48% | 3.45% | 3.82% |
Expected return on plan assets | 2.80% | 4.84% | 4.83% |
Retiree Medical Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 171 | $ 195 | $ 184 |
Interest cost | 375 | 339 | 345 |
Amortization of prior service cost | (92) | (158) | (158) |
Recognized actuarial net loss | 88 | 59 | |
Net periodic benefit expense (income) | 454 | 464 | 430 |
Total net periodic benefit cost (income) | $ 454 | $ 464 | $ 430 |
Weighted average assumptions at measurement date: | |||
Discount rate | 4.41% | 3.72% | 4.26% |
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. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Defined Benefit Plan Assumed Health Care Cost Trend Rates [Abstract] | |||
Post-65 | 7.50% | 8.00% | 8.40% |
Associate Retirement Plans - Su
Associate Retirement Plans - Summary of Fair Value Pension Plan Asset (Detail) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value | $ 1,496 | $ 74,241 | |
Mutual funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value | 20,124 | ||
Pooled funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value | 29,576 | ||
Money market fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value | 1,496 | 11,992 | |
Guaranteed annuity contracts [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value | 12,549 | $ 13,891 | |
Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value | 1,496 | 11,992 | |
Level 2 [Member] | Money market fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value | $ 1,496 | 11,992 | |
Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value | 12,549 | ||
Level 3 [Member] | Guaranteed annuity contracts [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value | 12,549 | ||
NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value | 49,700 | ||
NAV | Mutual funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value | 20,124 | ||
NAV | Pooled funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value | $ 29,576 |
Associate Retirement Plans - _2
Associate Retirement Plans - Summary of Reconciliation of Beginning and Ending Balances for Level 3 Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Balance at beginning of year | $ 74,241 | |
Balance at end of year | 1,496 | $ 74,241 |
Guaranteed annuity contracts [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Balance at beginning of year | 12,549 | 13,891 |
Purchases, sales, issuances and settlements, net | (13,112) | (1,712) |
Interest income | 349 | 588 |
Unrealized loss (gains) | $ 214 | (218) |
Balance at end of year | $ 12,549 | |
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible List] | us-gaap:FairValueInputsLevel3Member |
Associate Retirement Plans - Es
Associate Retirement Plans - Estimated Benefit Payments Expected to be Paid (Detail) - Post-retirement Medical Benefits [Member] $ in Thousands | Dec. 28, 2019USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 466 |
2021 | 503 |
2022 | 539 |
2023 | 571 |
2024 | 597 |
2025 to 2029 | $ 3,281 |
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. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance, value | $ 715,947 | $ 721,950 | $ 825,407 |
Other comprehensive income (loss) before reclassifications | 219 | (2,026) | (2,448) |
Income tax (expense) benefit | (55) | 458 | 934 |
Other comprehensive income (loss), net of tax, before reclassifications | 164 | (1,568) | (1,514) |
Amortization of amounts included in net periodic benefit cost | 18,480 | 1,204 | 799 |
Income tax expense | (4,485) | (259) | (302) |
Amounts reclassified out of AOCI, net of tax | 13,995 | 945 | 497 |
Other comprehensive income (loss), net of tax | 14,159 | (623) | (1,017) |
Balance, value | 687,538 | 715,947 | 721,950 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance, value | (15,759) | (15,136) | (11,437) |
Other comprehensive income (loss), net of tax | 14,159 | (623) | (1,017) |
Reclassification of stranded tax effects | (2,682) | ||
Balance, value | $ (1,600) | $ (15,759) | $ (15,136) |
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. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Amortization of net actuarial loss, prior service cost and settlement expense | $ 18.4 | $ 0.9 | $ 0.6 |
Income Tax - Summary of Income
Income Tax - Summary of Income Tax Provision for Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Current income tax expense (benefit): | |||
Federal | $ (899) | $ (1,607) | $ 366 |
State | 817 | 1,107 | 528 |
Total current income tax expense (benefit) | (82) | (500) | 894 |
Deferred income tax (benefit) expense: | |||
Federal | 126 | 8,370 | (72,842) |
State | (2,386) | (963) | (7,079) |
Total deferred income tax (benefit) expense | (2,260) | 7,407 | (79,921) |
Total income tax (benefit) expense | $ (2,342) | $ 6,907 | $ (79,027) |
Income Tax - Reconciliation of
Income Tax - Reconciliation of Statutory Federal Rate to Effective Rate (Detail) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract] | |||
Federal statutory income tax rate | 21.00% | 21.00% | 35.00% |
Stock compensation | 7.20% | 0.70% | 1.00% |
Non-deductible expenses | 0.80% | 0.60% | (0.30%) |
Domestic production activities deduction | 0.10% | ||
Federal rate change effect on deferred taxes | (1.20%) | 19.70% | |
Change in tax contingencies | (2.50%) | ||
Charitable product donations | (5.60%) | (0.60%) | 0.40% |
Other, net | (2.40%) | (0.90%) | 0.80% |
State taxes, net of federal income tax benefit | (36.10%) | 1.70% | 3.10% |
Tax credits | (50.40%) | (1.80%) | 0.20% |
Effective income tax rate | (65.50%) | 17.00% | 60.00% |
Income Tax - Reconciliation o_2
Income Tax - Reconciliation of Statutory Federal Rate to Effective Rate (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract] | |||
Federal statutory rate | 21.00% | 21.00% | 35.00% |
Income Tax - Additional Informa
Income Tax - Additional Information (Detail) - USD ($) $ in Millions | Jan. 02, 2021 | Oct. 06, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Income Tax Expense Benefit Continuing Operations [Line Items] | |||||
Provisional discrete income tax benefit, re-measurement of deferred income tax assets and liabilities | $ 26 | ||||
Income tax benefit resulting from Tax Act | $ 0.5 | ||||
Uncertain tax positions included in unrecognized tax benefits | $ 0.3 | ||||
Effective income tax rate reconciliation, reduction resulting from lapse of statute of limitations | $ 0.2 | $ 1 | |||
Forecast [Member] | |||||
Income Tax Expense Benefit Continuing Operations [Line Items] | |||||
Impact of unrecognized tax benefits settlement on effective tax rate | $ 0.9 |
Income Tax - Summary of Deferre
Income Tax - Summary of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Deferred tax assets: | ||
Employee benefits | $ 17,087 | $ 17,330 |
Accrued workers' compensation | 1,632 | 1,402 |
Allowance for doubtful accounts | 10,870 | 10,171 |
Intangible assets | 1,319 | |
Restructuring | 472 | 1,806 |
Deferred revenue | 1,678 | 1,269 |
Accrued rent | 399 | 3,196 |
Lease liabilities | 85,005 | 7,843 |
Accrued insurance | 1,007 | 1,150 |
Federal net operating loss carryforwards | 2,332 | |
Federal credits | 851 | |
State net operating loss carryforwards | 4,498 | 2,656 |
All other | 4,073 | 3,917 |
Total deferred tax assets | 131,223 | 50,740 |
Deferred tax liabilities: | ||
Property and equipment | 45,136 | 43,844 |
Lease assets | 73,191 | 5,314 |
Inventory | 33,739 | 32,401 |
Goodwill | 21,404 | 15,763 |
Intangible assets | 1,011 | |
All other | 864 | 1,661 |
Total deferred tax liabilities | 174,334 | 99,994 |
Net deferred tax liability | $ 43,111 | $ 49,254 |
Income Tax - Summary of Defer_2
Income Tax - Summary of Deferred Tax Assets and Liabilities (Parenthetical) (Detail) | 12 Months Ended |
Dec. 28, 2019 | |
Income Tax Expense Benefit Continuing Operations [Line Items] | |
Federal credit carryforwards expire year | 2039 |
State and Local Jurisdiction | |
Income Tax Expense Benefit Continuing Operations [Line Items] | |
Net operating losses, expiration date, description | expire in tax years 2021 through 2039 if not utilized |
Income Tax - Reconciliation o_3
Income Tax - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Reconciliation Of Unrecognized Tax Benefits Excluding Amounts Pertaining To Examined Tax Returns Roll Forward | ||
Balance at beginning of year | $ 1,477 | $ 2,408 |
Gross increases - tax positions taken in prior years | 71 | 163 |
Gross decreases - tax positions taken in prior years | (125) | (171) |
Gross increases - tax positions taken in current year | 850 | 894 |
Lapsed statutes of limitations | (848) | (1,817) |
Balance at end of year | $ 1,425 | $ 1,477 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum Contractual term | 0 years | 4 months 13 days | 1 year 25 days | 1 year 7 months 24 days |
Shares available for Grant under the Plan | 2,500,000 | |||
Shares unissued | 41,557 | |||
Proceeds from exercise of stock options | $ 181 | $ 284 | $ 3,207 | |
Fair value of share vested | 6,200 | 4,800 | 9,300 | |
Tax deductions related to the exercise of stock option and vesting of restricted stock | $ 7,200 | $ 5,600 | $ 11,600 | |
Stock purchase plan | 300,000 | |||
Annual bonus for common stock, cash value percentage | 120.00% | |||
Share based payment share restriction period | 24 months | |||
Share based payment authorized issuance of additional shares to be granted | 45,000 | |||
Shares issued | 3,443 | |||
Purchase price of common stock | 95.00% | |||
Restricted Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option award period | 4 years | |||
Unrecognized compensation cost | $ 4,900 | |||
Unrecognized compensation cost, weighted average period of recognition | 2 years 4 months 24 days | |||
Restricted Stock Awards [Member] | Board of Directors Chairman [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option award period | 1 year | |||
2015 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum Contractual term | 10 years | |||
Shares unissued | 1,019,555 | |||
Associate Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock purchase plan | 200,000 | |||
Shares issued under associate stock purchase plan | 130,185 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Shares Under Options, Outstanding, Beginning balance | 13,052 | 47,928 | 200,517 | |
Shares Under Options, Exercisable | 13,052 | 47,928 | 200,517 | |
Shares Under Options, Exercised | (13,052) | (20,476) | (152,589) | |
Shares Under Options, Cancelled/Expired | (14,400) | |||
Shares Under Options, Outstanding, Ending balance | 13,052 | 47,928 | 200,517 | |
Shares Under Options, Exercisable | 13,052 | 47,928 | 200,517 | |
Weighted Average Exercise Price, Options outstanding, Beginning balance | $ 13.87 | $ 16.52 | $ 19.94 | |
Weighted Average Exercise Price, Exercisable | 13.87 | 16.52 | 19.94 | |
Weighted Average Exercise Price, Exercised | $ 13.87 | 13.87 | 21.02 | |
Weighted Average Exercise Price, Cancelled/Expired | 22.69 | |||
Weighted Average Exercise Price, Options outstanding, Ending balance | 13.87 | 16.52 | $ 19.94 | |
Weighted Average Exercise Price, Exercisable | $ 13.87 | $ 16.52 | $ 19.94 | |
Weighted Average Remaining Contractual Life Years, Options outstanding | 0 years | 4 months 13 days | 1 year 25 days | 1 year 7 months 24 days |
Weighted Average Remaining Contractual Life Years, Exercisable | 0 years | 4 months 13 days | 1 year 25 days | 1 year 7 months 24 days |
Aggregate Intrinsic Value, Options outstanding, Beginning balance | $ 39 | $ 487 | $ 3,929 | |
Aggregate Intrinsic Value, Exercisable | 39 | 487 | 3,929 | |
Aggregate Intrinsic Value, Exercised | $ 51 | 1,043 | 1,543 | |
Aggregate Intrinsic Value, Options outstanding, Ending balance | 39 | 487 | $ 3,929 | |
Aggregate Intrinsic Value, Exercisable | $ 39 | $ 487 | $ 3,929 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Restricted Stock Activity (Detail) - Restricted Stock Awards [Member] - $ / shares | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Outstanding and nonvested, Beginning balance | 822,819 | 613,744 | 660,143 |
Shares, Granted | 488,063 | 482,572 | 296,297 |
Shares, Vested | (346,721) | (260,644) | (258,183) |
Shares, Forfeited | (35,428) | (12,853) | (84,513) |
Shares Outstanding and nonvested, Ending balance | 928,733 | 822,819 | 613,744 |
Weighted Average Grant-Date Fair Value, Outstanding and nonvested, Beginning balance | $ 23.07 | $ 30.32 | $ 26.48 |
Weighted Average Grant-Date Fair Value, Granted | 17.84 | 17 | 34.68 |
Weighted Average Grant-Date Fair Value, Vested | 23.47 | 28.89 | 25.90 |
Weighted Average Grant-Date Fair Value, Forfeited | 20.11 | 23.52 | 29.11 |
Weighted Average Grant-Date Fair Value, Outstanding and nonvested, ending balance | $ 20.28 | $ 23.07 | $ 30.32 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Allocation of Stock-Based Compensation Expense in Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Employee Service Share Based Compensation Aggregate Disclosures [Abstract] | |||
Restricted stock | $ 7,312 | $ 7,646 | $ 9,611 |
Tax benefits | (1,303) | (2,242) | (3,440) |
Stock-based compensation expense, net of tax | $ 6,009 | $ 5,404 | $ 6,171 |
Concentration of Credit Risk -
Concentration of Credit Risk - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jul. 13, 2019Store | Dec. 28, 2019USD ($)StoreRetailer | Dec. 29, 2018USD ($) | Jan. 06, 2017USD ($) | |
Concentration Of Credit Risk [Line Items] | ||||
Number of independent retailer for unearned advanced amount | Retailer | 1 | |||
Number of stores rights to acquire | Store | 5 | |||
Number of stores rights to acquire assigned to independent retailer | Store | 3 | |||
Number of stores acquired | Store | 2 | |||
Goodwill | $ 181,035 | $ 178,648 | ||
Amount of charge related to realizability of customer advance | 2,400 | $ 32,000 | ||
Present value of potential obligation for sub-lease | 7,700 | |||
Assigned sublease obligation | 12,000 | |||
Food Distribution Segment [Member] | ||||
Concentration Of Credit Risk [Line Items] | ||||
Goodwill | $ 2,400 | $ 46,300 | ||
Minimum [Member] | ||||
Concentration Of Credit Risk [Line Items] | ||||
Loan repayable period | 5 years | |||
Maximum [Member] | ||||
Concentration Of Credit Risk [Line Items] | ||||
Loan repayable period | 10 years |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Schedule of Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Non-cash financing activities: | |||
Issuance of note payable as consideration for acquisition | $ 2,460 | ||
Recognition of investment in direct financing lease | 2,295 | ||
Recognition of finance lease obligations | $ 3,679 | $ 3,304 | 588 |
Non-cash investing activities: | |||
Capital expenditures included in accounts payable | 16,111 | 4,564 | 5,418 |
Derecognition of fixed assets under direct financing lease | 2,295 | ||
Finance lease asset additions | 3,679 | 3,304 | 588 |
Non-cash acquisition (Note 15) | 5,363 | ||
Acquisition financed through issuance of note payable | 2,460 | ||
Other supplemental cash flow information: | |||
Cash paid for interest | 33,236 | 28,138 | 22,818 |
Income tax (refunds) payments | $ (9,680) | $ 139 | $ 10,657 |
Reporting Segment Information -
Reporting Segment Information - Additional Information (Detail) | 12 Months Ended | ||
Dec. 28, 2019SegmentDistribution_CentersSupermarketsPharmacyServicesFuel_Center | Dec. 29, 2018 | Dec. 30, 2017 | |
Segment Reporting Information [Line Items] | |||
Number of Reportable Segment | Segment | 3 | ||
Number of distribution centers | 11 | ||
Number of military distribution centers | 7 | ||
Number of corporate-owned retail stores | Supermarkets | 156 | ||
Number of retail stores offered pharmacy services | PharmacyServices | 97 | ||
Number of fuel centers operated | Fuel_Center | 37 | ||
Food Distribution [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of military distribution centers | 2 | ||
Concentration of Credit Risk [Member] | Net Sales [Member] | Food Distribution [Member] | Dollar General [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated net sales | 17.00% | 16.00% | 14.00% |
Concentration of Credit Risk [Member] | Net Sales [Member] | Food Distribution [Member] | Other Customers [Member] | Maximum [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of consolidated net sales | 4.00% | 4.00% | 4.00% |
Reporting Segment Information_2
Reporting Segment Information - Schedule of Segment Reporting Information, by Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Oct. 05, 2019 | Jul. 13, 2019 | Dec. 29, 2018 | Oct. 06, 2018 | Jul. 14, 2018 | Oct. 07, 2017 | Apr. 20, 2019 | Apr. 21, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | $ 1,997,953 | $ 1,999,808 | $ 1,995,929 | $ 1,896,796 | $ 1,886,730 | $ 1,895,953 | $ 2,542,375 | $ 2,385,073 | $ 8,536,065 | $ 8,064,552 | $ 7,963,799 | |
Merger/acquisition and integration | 73 | 582 | 1,406 | 521 | 804 | 782 | 2,206 | 1,437 | 4,937 | 8,101 | ||
Goodwill impairment | 189,027 | |||||||||||
Restructuring, asset impairment and other charges (gains) | 2,835 | $ 1,296 | $ 14,581 | 32,277 | $ 232 | $ (1,164) | $ (5,662) | $ 6,202 | 13,050 | 37,546 | 39,432 | |
Depreciation and amortization | 88,401 | 82,853 | 83,240 | |||||||||
Operating earnings (loss) | 56,942 | 70,512 | (106,675) | |||||||||
Capital expenditures | 74,815 | 71,495 | 70,906 | |||||||||
Total Assets | 2,275,609 | 1,971,912 | 2,275,609 | 1,971,912 | ||||||||
Discontinued Operations [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total Assets | 3,090 | 3,151 | 3,090 | 3,151 | ||||||||
Operating Segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 8,536,065 | 8,064,552 | 7,963,799 | |||||||||
Intersegment Eliminations [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | (976,372) | (842,934) | (885,872) | |||||||||
Food Distribution [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 3,982,609 | 3,991,450 | 3,827,909 | |||||||||
Merger/acquisition and integration | (122) | 3,581 | 6,244 | |||||||||
Restructuring, asset impairment and other charges (gains) | 14,844 | 33,056 | 1,317 | |||||||||
Depreciation and amortization | 33,396 | 32,073 | 30,255 | |||||||||
Operating earnings (loss) | 47,416 | 48,752 | 83,115 | |||||||||
Capital expenditures | 28,385 | 33,271 | 25,990 | |||||||||
Total Assets | 1,087,307 | 1,074,125 | 1,087,307 | 1,074,125 | ||||||||
Food Distribution [Member] | Operating Segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 3,982,609 | 3,991,450 | 3,827,909 | |||||||||
Food Distribution [Member] | Intersegment Eliminations [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | (976,372) | (842,934) | (885,872) | |||||||||
Military [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 2,172,107 | 2,166,843 | 2,144,022 | |||||||||
Merger/acquisition and integration | 4 | 1,522 | ||||||||||
Restructuring, asset impairment and other charges (gains) | (801) | 500 | ||||||||||
Depreciation and amortization | 11,834 | 11,968 | 11,626 | |||||||||
Operating earnings (loss) | (9,316) | 5,647 | 6,969 | |||||||||
Capital expenditures | 6,295 | 3,530 | 6,482 | |||||||||
Total Assets | 390,799 | 405,587 | 390,799 | 405,587 | ||||||||
Military [Member] | Operating Segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 2,172,107 | 2,166,843 | 2,144,022 | |||||||||
Retail [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 2,381,349 | 1,906,259 | 1,991,868 | |||||||||
Merger/acquisition and integration | 1,559 | 1,352 | 335 | |||||||||
Goodwill impairment | $ 189,000 | 189,027 | ||||||||||
Restructuring, asset impairment and other charges (gains) | (1,794) | 5,291 | 37,615 | |||||||||
Depreciation and amortization | 43,171 | 38,812 | 41,359 | |||||||||
Operating earnings (loss) | 18,842 | 16,113 | (196,759) | |||||||||
Capital expenditures | 40,135 | 34,694 | 38,434 | |||||||||
Total Assets | $ 794,413 | $ 489,049 | 794,413 | 489,049 | ||||||||
Retail [Member] | Operating Segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | $ 2,381,349 | $ 1,906,259 | $ 1,991,868 |
Quarterly Financial Informati_3
Quarterly Financial Information (unaudited) - Schedule of Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Dec. 28, 2019 | Oct. 05, 2019 | Jul. 13, 2019 | Dec. 29, 2018 | Oct. 06, 2018 | Jul. 14, 2018 | Apr. 20, 2019 | Apr. 21, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 1,997,953 | $ 1,999,808 | $ 1,995,929 | $ 1,896,796 | $ 1,886,730 | $ 1,895,953 | $ 2,542,375 | $ 2,385,073 | $ 8,536,065 | $ 8,064,552 | $ 7,963,799 |
Gross profit | 286,733 | 290,361 | 289,007 | 245,390 | 256,142 | 265,660 | 377,729 | 343,214 | 1,243,830 | 1,110,406 | 1,144,909 |
Merger/acquisition and integration | 73 | 582 | 1,406 | 521 | 804 | 782 | 2,206 | 1,437 | 4,937 | 8,101 | |
Restructuring, asset impairment and other charges (gains) | 2,835 | 1,296 | 14,581 | 32,277 | 232 | (1,164) | (5,662) | 6,202 | 13,050 | 37,546 | 39,432 |
Postretirement benefit expense (income) | 126 | 10,221 | 8,821 | 179 | (6) | (10) | 635 | (4) | 19,803 | 159 | (359) |
Earnings (loss) before income taxes and discontinued operations | 5,104 | (1,966) | (9,708) | (19,501) | 19,919 | 23,085 | 10,145 | 17,195 | 3,575 | 40,698 | (131,644) |
Earnings (loss) from continuing operations | 5,473 | (310) | (6,767) | (14,027) | 17,545 | 17,838 | 7,521 | 12,435 | 5,917 | 33,791 | (52,617) |
(Loss) earnings from discontinued operations, net of taxes | (49) | (27) | (47) | 19 | (80) | (66) | (52) | (92) | (175) | (219) | (228) |
Net earnings (loss) | $ 5,424 | $ (337) | $ (6,814) | $ (14,008) | $ 17,465 | $ 17,772 | $ 7,469 | $ 12,343 | $ 5,742 | $ 33,572 | $ (52,845) |
Earnings (loss) from continuing operations per share: | |||||||||||
Basic | $ 0.15 | $ (0.01) | $ (0.19) | $ (0.39) | $ 0.49 | $ 0.50 | $ 0.21 | $ 0.34 | $ 0.16 | $ 0.94 | $ (1.41) |
Diluted | 0.15 | (0.01) | (0.19) | (0.39) | 0.49 | 0.50 | 0.21 | 0.34 | 0.16 | 0.94 | (1.41) |
Net earnings (loss) per share: | |||||||||||
Basic | 0.15 | (0.01) | (0.19) | (0.39) | 0.49 | 0.49 | 0.21 | 0.34 | 0.16 | 0.93 | (1.41) |
Diluted | $ 0.15 | $ (0.01) | $ (0.19) | $ (0.39) | $ 0.49 | $ 0.49 | $ 0.21 | $ 0.34 | $ 0.16 | $ 0.93 | $ (1.41) |
Dividends | $ 6,907 | $ 6,905 | $ 6,902 | $ 6,471 | $ 6,469 | $ 6,457 | $ 6,902 | $ 6,526 | $ 27,616 | $ 25,923 | $ 24,704 |