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Reporting Segment Information | 12 Months Ended
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Dec. 29, 2018
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, consisting of 14 distribution centers as well as facilities to process fresh produce, proteins, and meal kits, 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 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 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 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 shared with 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 Coastal Pacific Food Distributors to deliver the products on its behalf. The Retail segment operated 139 corporate owned retail stores and 29 fuel centers, predominantly in the Midwest region, as of December 29, 2018. 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 83 of its corporate owned retail stores as of December 29, 2018. 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 |
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 charges (gains), asset impairment and other charges |  |  | 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 charges and asset impairment |  |  | 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 |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales to external customers | $ |  | 3,281,025 |  |  | $ |  | 2,197,014 |  |  | $ |  | 2,083,045 |  |  | $ |  | 7,561,084 |
Inter-segment sales |  |  | 918,095 |  |  |  |  | — |  |  |  |  | — |  |  |  |  | 918,095 |
Merger/acquisition and integration |  |  | 3,703 |  |  |  |  | 1 |  |  |  |  | 3,255 |  |  |  |  | 6,959 |
Restructuring charges (gains) and asset impairment |  |  | 5,068 |  |  |  |  | (473 | ) |  |  |  | 27,521 |  |  |  |  | 32,116 |
Depreciation and amortization |  |  | 21,397 |  |  |  |  | 11,484 |  |  |  |  | 44,365 |  |  |  |  | 77,246 |
Operating earnings |  |  | 85,296 |  |  |  |  | 12,216 |  |  |  |  | 11,672 |  |  |  |  | 109,184 |
Capital expenditures |  |  | 19,075 |  |  |  |  | 6,447 |  |  |  |  | 47,907 |  |  |  |  | 73,429 |
|  |  |  |  |  |  |  |  |  |  | December 29, |  |  | December 30, |
(In thousands) |  |  |  |  |  |  |  |  |  |  | 2018 |  |  | 2017 |
Total Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Food Distribution |  |  |  |  |  |  |  |  |  |  | $ |  | 1,074,125 |  |  | $ |  | 1,085,621 |
Military |  |  |  |  |  |  |  |  |  |  |  |  | 405,587 |  |  |  |  | 432,818 |
Retail |  |  |  |  |  |  |  |  |  |  |  |  | 489,049 |  |  |  |  | 533,912 |
Discontinued operations |  |  |  |  |  |  |  |  |  |  |  |  | 3,151 |  |  |  |  | 3,446 |
Total |  |  |  |  |  |  |  |  |  |  | $ |  | 1,971,912 |  |  | $ |  | 2,055,797 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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