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Merger | 9 Months Ended
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Oct. 04, 2014
Business Combinations [Abstract] |
Merger | Note 3 Merger On November 19, 2013, Spartan Stores, Inc. completed a merger with Nash-Finch, a food distribution company serving military commissaries and exchanges and independent grocery retailers as well as an operator of retail grocery stores. The merger was accounted for under the provisions of FASB Accounting Standards Codification Topic 805, “Business Combinations.” The related assets acquired and liabilities assumed were recorded at estimated fair values on the acquisition date. The following table summarizes the fair values of the assets acquired and liabilities assumed on November 19, 2013. During the measurement period, which will end on November 18, 2014, net adjustments of $7.0 million have been made to the fair values of the assets acquired and liabilities assumed with a corresponding adjustment to goodwill. These adjustments are summarized in the table presented below. The accompanying condensed consolidated balance sheet as of December 28, 2013 has been retrospectively adjusted to reflect these adjustments made as of November 19, 2013 as required by the accounting guidance for business combinations. The valuation process is not complete and the final determination of the fair values may result in further adjustments to the values presented below:
(In thousands) |  | Initial Valuation |  |  | 2014 Adjustments to Fair Value |  |  | October 4, 2014 |
Current assets |  | $ | 790,296 |  |  | $ | (2,866 | ) |  | $ | 787,430 |
Property and equipment |  |  | 369,495 |  |  |  | (22,995 | ) |  |  | 346,500 |
Goodwill |  |  | 43,584 |  |  |  | (6,962 | ) |  |  | 36,622 |
Intangible assets |  |  | 10,750 |  |  |  | 17,800 |  |  |  | 28,550 |
Other |  |  | 38,160 |  |  |  | — |  |  |  | 38,160 |
Total assets acquired |  |  | 1,252,285 |  |  |  | (15,023 | ) |  |  | 1,237,262 |
Current liabilities |  |  | 353,484 |  |  |  | (11,263 | ) |  |  | 342,221 |
Other long-term liabilities |  |  | 81,047 |  |  |  | (4,516 | ) |  |  | 76,531 |
Long-term debt and capital lease obligations |  |  | 438,140 |  |  |  | 756 |  |  |  | 438,896 |
Total liabilities assumed |  |  | 872,671 |  |  |  | (15,023 | ) |  |  | 857,648 |
Net assets acquired |  | $ | 379,614 |  |  | $ | — |  |  | $ | 379,614 |
During the second quarter ended July 12, 2014, management of the Company made revisions to the cash flow projections to correct the allocation between certain reporting units related to the valuation analysis completed in 2013. Management has concluded that the purchase accounting effect of the revisions is not material to the consolidated financial statements for any period presented. As a result of the revisions, property and equipment was decreased by $23.0 million, while intangible assets were increased by $19.3 million and goodwill was increased by $3.7 million. The excess of the purchase price over the fair value of net assets acquired of $36.6 million was preliminarily recorded as goodwill in the condensed consolidated balance sheet and allocated to the Food Distribution segment. The goodwill recognized is attributable primarily to expected synergies and the assembled workforce of Nash-Finch. No goodwill is expected to be deductible for tax purposes. Intangible assets acquired are currently valued as follows:
(In thousands) |  | Intangible Assets |  |  | Useful Life |
Trade names |  | $ | 6,700 |  |  |  | Indefinite |
Customer lists |  |  | 5,100 |  |  |  | 7 years |
Customer relationships |  |  | 12,100 |  |  |  | 20 years |
Favorable leases |  |  | 4,650 |  |  |  | 7 to 22 years |
|  | $ | 28,550 |  |  |  |  |
The following supplemental pro forma financial information presents sales and net earnings as if the Nash-Finch Company was acquired on the first day of the 40-week period ended October 12, 2013. This pro forma information is not necessarily indicative of the results that would have been obtained if the acquisition had occurred at the beginning of the 40-week period presented or that may be obtained in the future.
|  | October 12, 2013 |
(In thousands) |  | 12 Weeks Ended |  |  | 40 Weeks Ended |
Net sales |  | $ | 1,796,656 |  |  | $ | 5,928,875 |
Net earnings from continuing operations |  |  | 13,799 |  |  |  | 41,980 |

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- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References No definition available. + Details
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