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Reporting Segment Information
 12 Months Ended
Jan. 02, 2021
Segment Reporting [Abstract]  
Reporting Segment Information

Note 16 – 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 12 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 one customer in the Food Distribution segment represented over 15% of consolidated net sales for 2020, 2019 and 2018. No other single customer exceeded 10% 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 also 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 January 2, 2021. 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 January 2, 2021.

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

 

 

Retail

 

 

Military

 

 

Total

 

2020 (53 Weeks)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales to external customers

$

 

4,577,178

 

 

$

 

2,637,917

 

 

$

 

2,133,390

 

 

$

 

9,348,485

 

Inter-segment sales

 

 

1,125,112

 

 

 

 

359

 

 

 

 

—

 

 

 

 

1,125,471

 

Merger/acquisition and integration

 

 

—

 

 

 

 

421

 

 

 

 

—

 

 

 

 

421

 

Restructuring, asset impairment and other charges

 

 

21,085

 

 

 

 

3,313

 

 

 

 

—

 

 

 

 

24,398

 

Depreciation and amortization

 

 

32,289

 

 

 

 

45,199

 

 

 

 

12,388

 

 

 

 

89,876

 

Operating earnings (loss)

 

 

45,962

 

 

 

 

66,359

 

 

 

 

(9,915

)

 

 

 

102,406

 

Capital expenditures

 

 

25,055

 

 

 

 

33,894

 

 

 

 

8,349

 

 

 

 

67,298

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019 (52 Weeks)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales to external customers

$

 

3,982,609

 

 

$

 

2,381,349

 

 

$

 

2,172,107

 

 

$

 

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

 

 

 

 

43,171

 

 

 

 

11,834

 

 

 

 

88,401

 

Operating earnings (loss)

 

 

47,416

 

 

 

 

18,842

 

 

 

 

(9,316

)

 

 

 

56,942

 

Capital expenditures

 

 

28,385

 

 

 

 

40,135

 

 

 

 

6,295

 

 

 

 

74,815

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018 (52 Weeks)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales to external customers

$

 

3,991,450

 

 

$

 

1,906,259

 

 

$

 

2,166,843

 

 

$

 

8,064,552

 

Inter-segment sales

 

 

842,934

 

 

 

 

—

 

 

 

 

—

 

 

 

 

842,934

 

Merger/acquisition and integration

 

 

3,581

 

 

 

 

1,352

 

 

 

 

4

 

 

 

 

4,937

 

Restructuring, asset impairment and other charges (gains)

 

 

33,056

 

 

 

 

5,291

 

 

 

 

(801

)

 

 

 

37,546

 

Depreciation and amortization

 

 

32,073

 

 

 

 

38,812

 

 

 

 

11,968

 

 

 

 

82,853

 

Operating earnings

 

 

48,752

 

 

 

 

16,113

 

 

 

 

5,647

 

 

 

 

70,512

 

Capital expenditures

 

 

33,271

 

 

 

 

34,694

 

 

 

 

3,530

 

 

 

 

71,495

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

January 2,

 

 

December 28,

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

2021

 

 

2019

 

Total Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Food Distribution

 

 

 

 

 

 

 

 

 

 

$

 

1,112,961

 

 

$

 

1,087,307

 

Retail

 

 

 

 

 

 

 

 

 

 

 

 

763,876

 

 

 

 

794,413

 

Military

 

 

 

 

 

 

 

 

 

 

 

 

400,554

 

 

 

 

390,799

 

Discontinued operations

 

 

 

 

 

 

 

 

 

 

 

 

—

 

 

 

 

3,090

 

Total

 

 

 

 

 

 

 

 

 

 

$

 

2,277,391

 

 

$

 

2,275,609