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Acquisition of Business | 12 Months Ended
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Dec. 29, 2018
Acquisition of Business [Abstract] |
Acquisition of Business | Note 11 Acquisition of Business Fiscal 2018 Acquisitions There were no acquisitions for fiscal 2018. ﻿ Fiscal 2017 Acquisitions There were no acquisitions for fiscal 2017. ﻿ Fiscal 2016 Acquisitions On August 1, 2016, the Company purchased five Mars Super Market stores located in Maryland. Weis Markets, Inc. acquired these locations and their operations in an effort to expand its presence in the Baltimore County region. The results of operations of the former Mars Super Market acquisition are included in the accompanying Consolidated Financial Statements from the date of acquisition. The five former Mars Super Market stores contributed $91.7 million, $91.5 million and $38.0 million to sales in 2018, 2017 and 2016, respectively. The cash purchase price paid was $24.6 million for the property, equipment, inventories, prepaid expenses and goodwill related to this purchase. The Company accounted for this transaction as a business combination in accordance with the acquisition method. The fair value of intangibles was determined based on the discounted cash flow model and property and equipment were determined based on external appraisals. Weis Markets, Inc. assumed two lease obligations in the acquisition of the former Mars Super Market stores and entered into two new lease agreements. Goodwill of $13.3 million has been recorded, based upon the expected benefits to be derived from new management business strategy and cost synergies. The $13.3 million of goodwill is deductible for tax purposes. The purchase price has been allocated to the acquired assets as follows. ﻿ The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition. The fair values of the acquired assets and assumed liabilities are reported below. ﻿
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﻿
﻿ | 5 Mars Super Market Stores
﻿(dollars in thousands) | August 1, 2016
﻿Inventories | $ | 1,267
﻿Accounts receivable and prepaid expenses |  | 248
﻿Property and equipment |  | 7,305
﻿Goodwill |  | 13,255
﻿Intangibles - favorable leasehold interest, net |  | 2,495
﻿Total fair value of assets acquired | $ | 24,570
﻿ Note 11 Acquisition of Business (continued) Fiscal 2016 Acquisitions (continued) In September 2016, the Company began its acquisition of 38 former Food Lion, LLC stores. Within eight weeks, ending in October 2016, Weis Markets acquired 21 Maryland, 13 Virginia and 4 Delaware former Food Lion, LLC stores. The results of operations of the 38 former Food Lion, LLC stores are included in the accompanying Consolidated Financial Statements from the date of acquisition. The Company accounted for this transaction as a business combination in accordance with the acquisition method. The fair value of intangibles was determined based on the discounted cash flow model and property and equipment were determined based on external appraisals. The acquired locations were part of a FTC forced diversiture in the approval process of the merger of Ahold and Delhaize Group, which resulted in a below fair value purchase price consideration. The cash purchase price paid was $29.4 million for the property, equipment, inventories, prepaid expenses and liabilities. Weis Markets, Inc. assumed thirty lease obligations and ownership of eight locations. The Company recognized a gain of $23.9 million on the purchase of the 38 former Food Lion, LLC stores. The 38 acquired Food Lion, LLC locations contributed $346.1 million, $369.2 million and $92.5 million to sales in 2018, 2017 and 2016, respectively. ﻿ The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition. The fair values of the acquired assets and assumed liabilities are reported below. ﻿
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﻿ |  |
﻿ | 38 Food Lion, LLC Stores
﻿(dollars in thousands) | Sept. 11 - Oct. 30, 2016
﻿Assets | $ |
﻿Current: |  |
﻿Accounts receivable, net |  | 146
﻿Inventories |  | 7,614
﻿Prepaid expenses and other current assets |  | 1,044
﻿Total current assets |  | 8,804
﻿Property and equipment, net |  | 60,735
﻿Intangibles - favorable leasehold interest |  | 4,583
﻿Total assets |  | 74,122
﻿ |  |
﻿Liabilities |  |
﻿Current: |  |
﻿ Accrued expenses |  | (428)
﻿Total current liabilities |  | (428)
﻿Other - unfavorable leasehold interest |  | (3,738)
﻿Deferred tax liability |  | (16,663)
﻿Total liabilities |  | (20,829)
﻿ |  |
﻿Total fair value of assets acquired and liabilities assumed | $ | 53,293
﻿ |  |
﻿Gain on bargain purchase | $ | 23,879
Note 11 Acquisition of Business (continued) Fiscal 2016 Acquisitions (continued) On October 30, 2016, Weis Markets acquired a former Nell’s Family Market store located in East Berlin, PA from C&S Wholesale Grocers. The results of operations of the former Nell’s Family Market acquisition are included in the accompanying Consolidated Financial Statements from the date of acquisition. The purchase price was $13.0 million , of which $3.4 million is payable over a 4 year term for the property, equipment, inventory, prepaid expenses and liabilities. The Company accounted for this transaction as a business combination in accordance with the acquisition method. The fair value of intangibles was determined based on the discounted cash flow model and property and equipment were determined based on external appraisals. The former Nell’s Family Market contributed $19.7 million, $17.6 million and $3.0 million to sales in 2018, 2017 and 2016, respectively. Goodwill of $3.9 million has been recorded, based upon the expected benefits to be derived from new management business strategy and cost synergies. The $3.9 million of goodwill is deductible for tax purposes. ﻿ The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition. The fair values of the acquired assets and assumed liabilities are reported below. ﻿
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﻿ |  |
﻿ | Nell's Family Market Store
﻿(dollars in thousands) | October 30, 2016
﻿Assets | $ |
﻿Current: |  |
﻿Inventories |  | 401
﻿Prepaid expenses and other current assets |  | 39
﻿Total current assets |  | 440
﻿Property and equipment, net |  | 8,625
﻿Goodwill |  | 3,913
﻿Intangible and other assets, net |  | 23
﻿Total assets |  | 13,001
﻿ |  |
﻿Liabilities |  |
﻿Current: |  |
﻿ Accrued expenses |  | (3)
﻿Total current liabilities |  | (3)
﻿ |  |
﻿Total fair value of assets acquired and liabilities assumed | $ | 12,998
﻿ The pro forma information includes historical results of operations of the 38 former Food Lion Supermarket and 5 former Mars Super Market stores but does not include efficiencies, cost reductions, synergies or investments in lower prices for the Company’s customers expected to result from the acquisitions. The unaudited pro forma financial information in the table below is not necessarily indicative of the results that actually would have occurred had the 38 former Food Lion Supermarket and the 5 former Mars Super Market stores been acquired at the beginning of 2016. The Company does not have reliable information to provide additional pro forma disclosures. ﻿
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﻿(dollars in thousands) |  |  |  |  |  |  |  |  |
﻿For the Fiscal Years Ended December 29, 2018, |  | 2018 |  | 2017 |  | 2016
﻿December 30, 2017 and December 31, 2016 |  | (52 weeks) |  | (52 weeks) |  | (53 weeks)
﻿Store sales |  | $ | 3,503,795 |  | $ | 3,460,484 |  | $ | 3,563,145
﻿

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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