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Reporting Segment Information
 12 Months Ended
Jan. 02, 2016
Segment Reporting [Abstract]  
Reporting Segment Information

Note 16 – Reporting Segment Information

SpartanNash sells and distributes products that are typically found in supermarkets. 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. The business is classified by management into three reportable segments: Military, Food Distribution and Retail. These reportable segments are three distinct businesses, each with a different customer base and management structure. The Company reviews its reportable segments on an annual basis, or more frequently if events or circumstances indicate a change in reportable segments has occurred.

The Company’s Food Distribution segment, consisting of 12 distribution centers, supplies a diverse group of independent retail locations and corporate-owned retail stores with dry groceries, produce, dairy products, meat, deli, bakery, frozen food, seafood, floral products, general merchandise, pharmacy, and health and beauty care items. Sales to independent retail customers and inter-segment sales are recorded based upon both a “cost plus” model and a “variable mark-up” model, which vary by commodity and servicing distribution center. To supply its wholesale customers, the Company operates a fleet of tractors, conventional trailers and refrigerated trailers.

The Military segment contracts with manufacturers to distribute a wide variety of grocery products primarily to U.S. military commissaries and exchanges from its 7 distribution centers. 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 Retail segment operates 163 corporate-owned retail stores and 29 fuel centers in the Midwest and Great Lakes. The Company’s retail stores typically offer dry groceries, produce, dairy products, meat, frozen food, seafood, floral products, general merchandise, beverages, tobacco products, health and beauty care products, delicatessen items and bakery goods. Pharmacy services are also offered in 91 corporate-owned retail stores.

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)

Military

 

 

Distribution

 

 

Retail

 

 

Total

 

Year Ended January 2, 2016 (52 Weeks):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales to external customers

$

 

2,207,161

 

 

$

 

3,305,094

 

 

$

 

2,139,718

 

 

$

 

7,651,973

 

Inter-segment sales

 

 

—

 

 

 

 

973,512

 

 

 

 

—

 

 

 

 

973,512

 

Merger integration and acquisition expenses

 

 

—

 

 

 

 

2,037

 

 

 

 

6,396

 

 

 

 

8,433

 

Depreciation and amortization

 

 

12,081

 

 

 

 

26,127

 

 

 

 

45,126

 

 

 

 

83,334

 

Operating earnings

 

 

17,059

 

 

 

 

78,841

 

 

 

 

26,975

 

 

 

 

122,875

 

Capital expenditures

 

 

3,768

 

 

 

 

17,967

 

 

 

 

57,659

 

 

 

 

79,394

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended January 3, 2015 (53 weeks):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales to external customers

$

 

2,275,512

 

 

$

 

3,356,331

 

 

$

 

2,284,219

 

 

$

 

7,916,062

 

Inter-segment sales

 

 

—

 

 

 

 

1,005,844

 

 

 

 

—

 

 

 

 

1,005,844

 

Merger integration and acquisition expenses

 

 

27

 

 

 

 

12,644

 

 

 

 

4

 

 

 

 

12,675

 

Depreciation and amortization

 

 

11,350

 

 

 

 

29,816

 

 

 

 

45,828

 

 

 

 

86,994

 

Operating earnings

 

 

21,721

 

 

 

 

54,802

 

 

 

 

38,323

 

 

 

 

114,846

 

Capital expenditures

 

 

15,088

 

 

 

 

31,953

 

 

 

 

42,971

 

 

 

 

90,012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period Ended December 28, 2013 (39 Weeks):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales to external customers

$

 

248,643

 

 

$

 

1,095,759

 

 

$

 

1,252,828

 

 

$

 

2,597,230

 

Inter-segment sales

 

 

—

 

 

 

 

533,470

 

 

 

 

—

 

 

 

 

533,470

 

Merger integration and acquisition expenses

 

 

—

 

 

 

 

20,993

 

 

 

 

—

 

 

 

 

20,993

 

Depreciation and amortization

 

 

1,412

 

 

 

 

7,706

 

 

 

 

27,964

 

 

 

 

37,082

 

Operating earnings

 

 

1,901

 

 

 

 

(1,328

)

 

 

 

16,220

 

 

 

 

16,793

 

Capital expenditures

 

 

2,246

 

 

 

 

13,867

 

 

 

 

21,087

 

 

 

 

37,200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

 

 

 

 

January 2, 2016

 

 

January 3, 2015

 

 

December 28, 2013

 

Total Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Military

 

 

 

 

 

$

 

416,220

 

 

$

 

435,647

 

 

$

 

451,518

 

Food Distribution

 

 

 

 

 

 

 

754,329

 

 

 

 

763,914

 

 

 

 

805,468

 

Retail

 

 

 

 

 

 

 

750,412

 

 

 

 

727,979

 

 

 

 

721,898

 

Discontinued operations

 

 

 

 

 

 

 

4,487

 

 

 

 

4,742

 

 

 

 

4,767

 

Total

 

 

 

 

 

$

 

1,925,448

 

 

$

 

1,932,282

 

 

$

 

1,983,651

 

 

The Company offers a wide variety of grocery products, general merchandise and health and beauty care, pharmacy, fuel, and other items and services. The following table presents sales by type of similar product and services:

 

 

January 2, 2016

 

January 3, 2015

 

December 28, 2013

(In thousands, except percentages)

(52 Weeks)

 

(53 Weeks)

 

(39 Weeks)

Non-perishables (1)

$

 

4,845,763

 

 

 

63.3

 

%

 

$

 

4,998,895

 

 

 

63.1

 

%

 

$

 

1,393,157

 

 

 

53.6

 

%

Perishables (2)

 

 

2,373,829

 

 

 

31.0

 

 

 

 

 

2,449,562

 

 

 

31.0

 

 

 

 

 

894,783

 

 

 

34.5

 

 

Pharmacy

 

 

310,377

 

 

 

4.1

 

 

 

 

 

289,494

 

 

 

3.7

 

 

 

 

 

163,659

 

 

 

6.3

 

 

Fuel

 

 

122,004

 

 

 

1.6

 

 

 

 

 

178,111

 

 

 

2.2

 

 

 

 

 

145,631

 

 

 

5.6

 

 

Consolidated net sales

$

 

7,651,973

 

 

 

100.0

 

%

 

$

 

7,916,062

 

 

 

100.0

 

%

 

$

 

2,597,230

 

 

 

100.0

 

%

(1)

Consists primarily of general merchandise, grocery, beverages, snacks, tobacco products and frozen foods.

(2)

Consists primarily of produce, dairy, meat, bakery, deli, floral and seafood.