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Business Acquisitions
9 Months Ended 12 Months Ended
Oct. 01, 2016
Jan. 02, 2016
Business Combinations [Abstract]    
Business Acquisitions
3. BUSINESS ACQUISITIONS

Business acquisitions during the 39-weeks ended October 1, 2016, included the stock of Fresh Unlimited, Inc. d/b/a Freshway Foods, a produce processor, repacker, and distributor, acquired in June, and certain assets of Cara Donna Provisions Co., Inc. and Cara Donna Properties LLC, a broadline distributor, acquired in March. Total consideration consisted of cash of approximately $96 million, plus $6 million for the estimated fair value of contingent consideration. On December 31, 2015, the Company purchased Waukesha Wholesale Foods, Inc. d/b/a Dierks Waukesha, a broadline distributor for cash of $69 million. The acquisitions, made in order to expand the Company’s presence in the produce category and in certain geographic areas, are integrated into the Company’s foodservice distribution network and were funded with cash from operations.

In March 2016, approximately $1 million was received as a purchase price adjustment related to the 2015 business acquisition resulting in minimal decreases to Property and equipment- net and Goodwill.

The following table summarizes the purchase price allocations for the 2016 and 2015 business acquisitions (in thousands):

 

     October 1,      January 2,  
     2016      2016  

Accounts receivable

     17,180         6,724   

Inventories

     6,922         7,022   

Other current assets

     474         702   

Property and equipment

     21,403         7,200   

Goodwill

     24,472         40,242   

Other intangible assets

     48,600         21,200   

Accounts payable

     (12,484      (3,290

Accrued expenses and other current liabilities

     (8,397      (1,554

Long-term debt

     (2,514      —     

Deferred income taxes

     —           (8,765
  

 

 

    

 

 

 

Cash paid for acquisitions

   $ 95,656       $ 69,481   
  

 

 

    

 

 

 

The 2016 and 2015 acquisitions did not materially affect the Company’s results of operations or financial position and, therefore, pro forma financial information has not been provided.

4. BUSINESS ACQUISITIONS

On December 31, 2015, the Company purchased a broadline distributor for cash of $69 million. During 2013, the Company purchased a foodservice distributor for cash of $14 million, plus contingent consideration of $2 million that was paid in 2014. The Company also received a $2 million purchase price adjustment in 2013 related to 2012 business acquisitions. The acquisitions, made in order to expand the Company’s presence in certain geographic areas, are integrated into the Company’s foodservice distribution network. There were no business acquisitions in 2014.

 

The following table summarizes the purchase price allocations for the 2015 and 2013 business acquisitions as follows (in thousands):

 

     2015      2013  

Accounts receivable

   $ 6,724       $ 3,894   

Inventories

     7,022         3,638   

Other current assets

     702         —     

Property and equipment

     7,200         125   

Goodwill

     40,242         —     

Other intangible assets

     21,200         8,348   

Accounts payable

     (3,290      (2,120

Accrued expenses and other current liabilities

     (1,554      (130

Deferred income taxes

     (8,765      —     
  

 

 

    

 

 

 

Cash paid for acquisitions

   $ 69,481       $ 13,755   
  

 

 

    

 

 

 

The 2015 and 2013 acquisitions did not materially affect the Company’s results of operations or financial position. Actual net sales and operating earnings of the businesses acquired in both periods represent less than 2% of the Company’s consolidated results and, therefore, pro forma information has not been provided.