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Reporting Segment Information
 12 Months Ended
Dec. 28, 2024
Segment Reporting [Abstract]  
Reporting Segment Information

Note 17 – Reportable Segment Information

SpartanNash sells and distributes products that are typically found in supermarkets and discount stores. The Company’s 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 segment adjusted EBITDA is regularly provided to the CODM to assess segment profitability as well as to identify opportunities and risks to profitability within the segments to determine resource allocations accordingly. The business is classified by management into two reportable segments: Wholesale and Retail. These reportable segments are two distinct businesses, each with a different customer base, management structure, and basis for determining budgets, forecasts, and 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. Refer to Note 3 for information regarding the basis of organization and types of products, services and customers from which the Company derives revenue. The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1. Identifiable assets represent total assets directly associated with the reportable segments. Eliminations in assets identified to segments include intercompany receivables, payables and investments. Capital expenditures primarily relate to store remodels, IT upgrades and implementations, investments in supply chain infrastructure, office remodels, and equipment upgrades.

The following tables set forth information about the Company by reportable segment:

 

2024

 

(In thousands)

Wholesale

 

 

Retail

 

 

Total

 

Net sales (including inter-segment sales)

$

 

7,906,020

 

 

$

 

2,841,800

 

 

$

 

10,747,820

 

Elimination of inter-segment sales

 

 

(1,196,715

)

 

 

 

(1,781

)

 

 

 

(1,198,496

)

Total consolidated net sales

 

 

6,709,305

 

 

 

 

2,840,019

 

 

 

 

9,549,324

 

 

 

 

 

 

 

 

 

 

 

 

 

Less (a):

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

5,921,242

 

 

 

 

2,110,417

 

 

 

 

8,031,659

 

Selling, general and administrative

 

 

600,857

 

 

 

 

658,322

 

 

 

 

1,259,179

 

Segment adjusted EBITDA

 

 

187,206

 

 

 

 

71,280

 

 

 

 

258,486

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

LIFO expense

 

 

 

 

 

 

 

 

 

 

(5,167

)

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

(103,412

)

Acquisition and integration, net

 

 

 

 

 

 

 

 

 

 

(3,113

)

Restructuring and goodwill / asset impairment, net

 

 

 

 

 

 

 

 

 

 

(74,107

)

Cloud computing amortization

 

 

 

 

 

 

 

 

 

 

(7,585

)

Organizational realignment, net

 

 

 

 

 

 

 

 

 

 

(2,757

)

Severance associated with cost reduction initiatives

 

 

 

 

 

 

 

 

 

 

(537

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

(10,743

)

Stock warrant

 

 

 

 

 

 

 

 

 

 

(868

)

Non-cash rent

 

 

 

 

 

 

 

 

 

 

2,679

 

Gain on disposal of assets

 

 

 

 

 

 

 

 

 

 

284

 

Legal settlement

 

 

 

 

 

 

 

 

 

 

900

 

Postretirement plan amendment and settlement

 

 

 

 

 

 

 

 

 

 

(99

)

Interest and non-operating expenses, net

 

 

 

 

 

 

 

 

 

 

(42,936

)

Earnings before income taxes

 

 

 

 

 

 

 

 

$

 

11,025

 

 

 

 

 

 

 

 

 

 

 

 

 

Other segment disclosures:

 

 

 

 

 

 

 

 

 

 

 

Acquisition and integration, net

$

 

2,048

 

 

$

 

1,065

 

 

$

 

3,113

 

Restructuring and goodwill / asset impairment, net

 

 

15,914

 

 

 

 

58,193

 

 

 

 

74,107

 

Depreciation and amortization

 

 

54,291

 

 

 

 

49,121

 

 

 

 

103,412

 

Capital expenditures

 

 

66,180

 

 

 

 

66,214

 

 

 

 

132,394

 

a) The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Amounts are presented on a non-GAAP, or adjusted basis.

 

2023

 

(In thousands)

Wholesale

 

 

Retail

 

 

Total

 

Net sales (including inter-segment sales)

$

 

8,108,655

 

 

$

 

2,811,334

 

 

$

 

10,919,989

 

Elimination of inter-segment sales

 

 

(1,189,438

)

 

 

 

(1,332

)

 

 

 

(1,190,770

)

Total consolidated net sales

 

 

6,919,217

 

 

 

 

2,810,002

 

 

 

 

9,729,219

 

 

 

 

 

 

 

 

 

 

 

 

 

Less (a):

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

6,136,812

 

 

 

 

2,090,747

 

 

 

 

8,227,559

 

Selling, general and administrative

 

 

604,514

 

 

 

 

639,745

 

 

 

 

1,244,259

 

Segment adjusted EBITDA

 

 

177,891

 

 

 

 

79,510

 

 

 

 

257,401

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

LIFO expense

 

 

 

 

 

 

 

 

 

 

(16,104

)

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

(98,639

)

Acquisition and integration, net

 

 

 

 

 

 

 

 

 

 

(3,416

)

Restructuring and asset impairment, net

 

 

 

 

 

 

 

 

 

 

(9,190

)

Cloud computing amortization

 

 

 

 

 

 

 

 

 

 

(5,034

)

Organizational realignment, net

 

 

 

 

 

 

 

 

 

 

(5,239

)

Severance associated with cost reduction initiatives

 

 

 

 

 

 

 

 

 

 

(318

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

(12,536

)

Stock warrant

 

 

 

 

 

 

 

 

 

 

(1,559

)

Non-cash rent

 

 

 

 

 

 

 

 

 

 

2,599

 

Loss on disposal of assets

 

 

 

 

 

 

 

 

 

 

(259

)

Legal settlement

 

 

 

 

 

 

 

 

 

 

(900

)

Postretirement plan amendment and settlement

 

 

 

 

 

 

 

 

 

 

(94

)

Interest and non-operating expenses, net

 

 

 

 

 

 

 

 

 

 

(36,587

)

Earnings before income taxes

 

 

 

 

 

 

 

 

$

 

70,125

 

 

 

 

 

 

 

 

 

 

 

 

 

Other segment disclosures:

 

 

 

 

 

 

 

 

 

 

 

Acquisition and integration, net

$

 

216

 

 

$

 

3,200

 

 

$

 

3,416

 

Restructuring and asset impairment, net

 

 

8,548

 

 

 

 

642

 

 

 

 

9,190

 

Depreciation and amortization

 

 

51,535

 

 

 

 

47,104

 

 

 

 

98,639

 

Capital expenditures

 

 

75,509

 

 

 

 

44,821

 

 

 

 

120,330

 

a) The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Amounts are presented on a non-GAAP, or adjusted basis.

 

2022

 

(In thousands)

Wholesale

 

 

Retail

 

 

Total

 

Net sales (including inter-segment sales)

$

 

8,049,733

 

 

$

 

2,798,792

 

 

$

 

10,848,525

 

Elimination of inter-segment sales

 

 

(1,204,497

)

 

 

 

(928

)

 

 

 

(1,205,425

)

Total consolidated net sales

 

 

6,845,236

 

 

 

 

2,797,864

 

 

 

 

9,643,100

 

 

 

 

 

 

 

 

 

 

 

 

 

Less (a):

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

6,016,894

 

 

 

 

2,071,908

 

 

 

 

8,088,802

 

Selling, general and administrative

 

 

662,466

 

 

 

 

648,953

 

 

 

 

1,311,419

 

Segment adjusted EBITDA

 

 

165,876

 

 

 

 

77,003

 

 

 

 

242,879

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

LIFO expense

 

 

 

 

 

 

 

 

 

 

(56,823

)

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

(94,180

)

Acquisition and integration, net

 

 

 

 

 

 

 

 

 

 

(343

)

Restructuring and asset impairment, net

 

 

 

 

 

 

 

 

 

 

(805

)

Cloud computing amortization

 

 

 

 

 

 

 

 

 

 

(3,650

)

Organizational realignment, net

 

 

 

 

 

 

 

 

 

 

(1,859

)

Severance associated with cost reduction initiatives

 

 

 

 

 

 

 

 

 

 

(831

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

(8,589

)

Stock warrant

 

 

 

 

 

 

 

 

 

 

(2,158

)

Non-cash rent

 

 

 

 

 

 

 

 

 

 

3,444

 

Loss on disposal of assets

 

 

 

 

 

 

 

 

 

 

(1,073

)

Postretirement plan amendment and settlement

 

 

 

 

 

 

 

 

 

 

(133

)

Costs related to shareholder activism

 

 

 

 

 

 

 

 

 

 

(7,335

)

Interest and non-operating expenses, net

 

 

 

 

 

 

 

 

 

 

(21,629

)

Earnings before income taxes

 

 

 

 

 

 

 

 

$

 

46,915

 

 

 

 

 

 

 

 

 

 

 

 

 

Other segment disclosures

 

 

 

 

 

 

 

 

 

 

 

Acquisition and integration, net

$

 

239

 

 

$

 

104

 

 

$

 

343

 

Restructuring and asset impairment, net

 

 

(2,363

)

 

 

 

3,168

 

 

 

 

805

 

Depreciation and amortization

 

 

47,601

 

 

 

 

46,579

 

 

 

 

94,180

 

Capital expenditures

 

 

52,394

 

 

 

 

44,886

 

 

 

 

97,280

 

a) The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Amounts are presented on a non-GAAP, or adjusted basis.

 

 

 

 

December 28,

 

 

December 30,

 

(In thousands)

 

 

 

2024

 

 

2023

 

Total assets

 

 

 

 

 

 

 

 

 

 

Wholesale

 

 

 

$

 

1,576,043

 

 

$

 

1,576,182

 

Retail

 

 

 

 

 

1,026,253

 

 

 

 

779,393

 

Total

 

 

 

$

 

2,602,296

 

 

$

 

2,355,575