0001564590-21-031562.txt : 20210603 0001564590-21-031562.hdr.sgml : 20210603 20210603160329 ACCESSION NUMBER: 0001564590-21-031562 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 73 CONFORMED PERIOD OF REPORT: 20210424 FILED AS OF DATE: 20210603 DATE AS OF CHANGE: 20210603 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SpartanNash Co CENTRAL INDEX KEY: 0000877422 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-GROCERIES & GENERAL LINE [5141] IRS NUMBER: 380593940 STATE OF INCORPORATION: MI FISCAL YEAR END: 1228 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-31127 FILM NUMBER: 21992449 BUSINESS ADDRESS: STREET 1: 850 76TH ST SW STREET 2: P O BOX 8700 CITY: GRAND RAPIDS STATE: MI ZIP: 49518 BUSINESS PHONE: 6168782000 MAIL ADDRESS: STREET 1: 850 76TH ST SW STREET 2: PO BOX 8700 CITY: GRAND RAPIDS STATE: MI ZIP: 49518 FORMER COMPANY: FORMER CONFORMED NAME: SPARTAN STORES INC DATE OF NAME CHANGE: 19930328 10-Q 1 sptn-10q_20210424.htm 10-Q sptn-10q_20210424.htm
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 24, 2021.

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     .

Commission File Number: 000-31127

 

SPARTANNASH COMPANY

(Exact Name of Registrant as Specified in Its Charter)

 

 Michigan

 

38-0593940

(State or Other Jurisdiction of

Incorporation or Organization)

 

(I.R.S. Employer

Identification No.)

 

 

 

850 76th Street, S.W.

P.O. Box 8700

Grand Rapids, Michigan

 

49518

(Address of Principal Executive Offices)

 

(Zip Code)

(616878-2000

(Registrant’s Telephone Number, Including Area Code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, no par value

 

SPTN

 

NASDAQ Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

 

 

Accelerated filer

 

 

Non-accelerated filer

 

 

Smaller reporting company

 

Emerging growth company

 

 

 

 

 

 

 

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

As of June 1, 2021, the registrant had 36,240,142 outstanding shares of common stock, no par value.

 

 


 

FORWARD-LOOKING STATEMENTS

The matters discussed in this Quarterly Report on Form 10-Q, in the Company’s press releases and in the Company’s website-accessible conference calls with analysts and investor presentations include “forward-looking statements” about the plans, strategies, objectives, goals or expectations of SpartanNash Company and subsidiaries (“SpartanNash” or “the Company”). These forward-looking statements are identifiable by words or phrases indicating that SpartanNash or management “expects,” “anticipates,” “plans,” “believes,” or “estimates,” or that a particular occurrence or event “will,” “may,” “could,” “should” or “will likely” result, occur or be pursued or “continue” in the future, that the “outlook” or “trend” is toward a particular result or occurrence, that a development is an “opportunity,” “priority,” “strategy,” “focus,” that the Company is “positioned” for a particular result, or similarly stated expectations.

In addition to other risks and uncertainties described in connection with the forward-looking statements contained in this Quarterly Report on Form 10-Q, SpartanNash’s Annual Report on Form 10-K for the fiscal year ended January 2, 2021 and other periodic reports filed with the Securities and Exchange Commission (“SEC”), there are many important factors that could cause actual results to differ materially. These risks and uncertainties include disruptions associated with the COVID-19 pandemic, general business conditions, changes in overall economic conditions that impact consumer spending, the Company’s ability to integrate acquired assets, the impact of competition and other factors which are often beyond the control of the Company, and other risks listed in the “Risk Factors” discussions in Items 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended January 2, 2021, and risks and uncertainties not presently known to the Company or that the Company currently deems immaterial.

This section and the discussions contained in Item 1A “Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended January 2, 2021 and in Part I, Item 2 “Critical Accounting Policies” of this Quarterly Report on Form 10-Q, are intended to provide meaningful cautionary statements for purposes of the safe harbor provision of the Private Securities Litigation Reform Act of 1995. This should not be construed as a complete list of all the economic, competitive, governmental, technological and other factors that could adversely affect the Company’s expected consolidated financial position, results of operations or liquidity. Additional risks and uncertainties not currently known to SpartanNash or that SpartanNash currently believes are immaterial also may impair its business, operations, liquidity, financial condition and prospects. The Company undertakes no obligation to update or revise its forward-looking statements to reflect developments that occur, or information obtained after the date of this Quarterly Report.


2


TABLE OF CONTENTS

 

 

 

Page

PART I.

FINANCIAL INFORMATION

4

 

 

 

Item 1.

Financial Statements

4

 

 

 

 

Condensed Consolidated Balance Sheets

4

 

 

 

 

Condensed Consolidated Statements of Earnings

5

 

 

 

 

Condensed Consolidated Statements of Comprehensive Income

6

 

 

 

 

Condensed Consolidated Statements of Shareholders’ Equity

7

 

 

 

 

Condensed Consolidated Statements of Cash Flows

8

 

 

 

 

Notes to Condensed Consolidated Financial Statements

9

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

17

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

27

 

 

 

Item 4.

Controls and Procedures

27

 

 

 

PART II.

OTHER INFORMATION

28

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

28

 

 

 

Item 6.

Exhibits

29

 

 

 

 

Signatures

30

 

3


 

PART I

FINANCIAL INFORMATION

ITEM 1. Financial Statements

SPARTANNASH COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, Unaudited)

 

April 24,

 

 

January 2,

 

 

2021

 

 

2021

 

Assets

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

 

23,292

 

 

$

 

19,903

 

Accounts and notes receivable, net

 

 

346,725

 

 

 

 

357,564

 

Inventories, net

 

 

602,565

 

 

 

 

541,785

 

Prepaid expenses and other current assets

 

 

64,474

 

 

 

 

72,229

 

Property and equipment held for sale

 

 

1,948

 

 

 

 

23,259

 

Total current assets

 

 

1,039,004

 

 

 

 

1,014,740

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

564,965

 

 

 

 

577,059

 

Goodwill

 

 

181,035

 

 

 

 

181,035

 

Intangible assets, net

 

 

114,538

 

 

 

 

116,142

 

Operating lease assets

 

 

276,811

 

 

 

 

289,173

 

Other assets, net

 

 

99,213

 

 

 

 

99,242

 

 

 

 

 

 

 

 

 

 

 

Total assets

$

 

2,275,566

 

 

$

 

2,277,391

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

Accounts payable

$

 

441,772

 

 

$

 

464,784

 

Accrued payroll and benefits

 

 

79,245

 

 

 

 

113,789

 

Other accrued expenses

 

 

58,097

 

 

 

 

60,060

 

Current portion of operating lease liabilities

 

 

44,898

 

 

 

 

45,786

 

Current portion of long-term debt and finance lease liabilities

 

 

4,996

 

 

 

 

5,135

 

Total current liabilities

 

 

629,008

 

 

 

 

689,554

 

 

 

 

 

 

 

 

 

 

 

Long-term liabilities

 

 

 

 

 

 

 

 

 

Deferred income taxes

 

 

56,696

 

 

 

 

45,728

 

Operating lease liabilities

 

 

266,842

 

 

 

 

278,859

 

Other long-term liabilities

 

 

50,432

 

 

 

 

46,892

 

Long-term debt and finance lease liabilities

 

 

522,068

 

 

 

 

481,309

 

Total long-term liabilities

 

 

896,038

 

 

 

 

852,788

 

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies (Note 7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

 

 

 

 

Common stock, voting, no par value; 100,000 shares

     authorized; 36,266 and 35,851 shares outstanding

 

 

494,955

 

 

 

 

491,819

 

Preferred stock, no par value, 10,000 shares authorized; no shares outstanding

 

 

 

 

 

 

 

Accumulated other comprehensive loss

 

 

(2,219

)

 

 

 

(2,276

)

Retained earnings

 

 

257,784

 

 

 

 

245,506

 

Total shareholders’ equity

 

 

750,520

 

 

 

 

735,049

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

$

 

2,275,566

 

 

$

 

2,277,391

 

See accompanying notes to condensed consolidated financial statements.

4


 

SPARTANNASH COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands, except per share amounts)

(Unaudited)

 

16 Weeks Ended

 

 

 

 

April 24, 2021

 

 

April 18, 2020

 

 

 

Net sales

$

 

2,657,799

 

 

$

 

2,856,456

 

 

 

Cost of sales

 

 

2,239,769

 

 

 

 

2,432,889

 

 

 

Gross profit

 

 

418,030

 

 

 

 

423,567

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

387,937

 

 

 

 

391,300

 

 

 

Acquisition and integration

 

 

59

 

 

 

 

 

 

 

Restructuring and asset impairment, net

 

 

(161

)

 

 

 

10,237

 

 

 

Total operating expenses

 

 

387,835

 

 

 

 

401,537

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings

 

 

30,195

 

 

 

 

22,030

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expenses and (income)

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

4,589

 

 

 

 

7,638

 

 

 

Other, net

 

 

(266

)

 

 

 

(1,041

)

 

 

Total other expenses, net

 

 

4,323

 

 

 

 

6,597

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before income taxes

 

 

25,872

 

 

 

 

15,433

 

 

 

Income tax expense

 

 

6,356

 

 

 

 

31

 

 

 

Net earnings

$

 

19,516

 

 

$

 

15,402

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net earnings per share:

$

 

0.55

 

 

$

 

0.43

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net earnings per share:

$

 

0.54

 

 

$

 

0.43

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to condensed consolidated financial statements.

5


 

SPARTANNASH COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands, Unaudited)

 

16 Weeks Ended

 

 

April 24, 2021

 

 

April 18, 2020

 

Net earnings

$

 

19,516

 

 

$

 

15,402

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income, before tax

 

 

 

 

 

 

 

 

 

Postretirement liability adjustment

 

 

76

 

 

 

 

106

 

 

 

 

 

 

 

 

 

 

 

Income tax expense related to items of other comprehensive income

 

 

(19

)

 

 

 

(26

)

 

 

 

 

 

 

 

 

 

 

Total other comprehensive income, after tax

 

 

57

 

 

 

 

80

 

Comprehensive income

$

 

19,573

 

 

$

 

15,482

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to condensed consolidated financial statements.

6


 

SPARTANNASH COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(In thousands, Unaudited)

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Common

 

 

Comprehensive

 

 

Retained

 

 

 

 

 

 

 

Outstanding

 

 

Stock

 

 

Loss

 

 

Earnings

 

 

Total

 

Balance at January 2, 2021

 

35,851

 

 

$

 

491,819

 

 

$

 

(2,276

)

 

$

 

245,506

 

 

$

 

735,049

 

Net earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

19,516

 

 

 

 

19,516

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

57

 

 

 

 

 

 

 

 

57

 

Dividends - $0.20 per share

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,238

)

 

 

 

(7,238

)

Stock-based employee compensation

 

 

 

 

 

4,185

 

 

 

 

 

 

 

 

 

 

 

 

4,185

 

Stock warrant

 

 

 

 

 

645

 

 

 

 

 

 

 

 

 

 

 

 

645

 

Issuances of common stock for stock bonus plan

  and associate stock purchase plan

 

21

 

 

 

 

385

 

 

 

 

 

 

 

 

 

 

 

 

385

 

Issuance of restricted stock

 

523

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cancellations of stock-based awards

 

(129

)

 

 

 

(2,079

)

 

 

 

 

 

 

 

 

 

 

 

(2,079

)

Balance at April 24, 2021

 

36,266

 

 

$

 

494,955

 

 

$

 

(2,219

)

 

$

 

257,784

 

 

$

 

750,520

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Common

 

 

Comprehensive

 

 

Retained

 

 

 

 

 

 

 

Outstanding

 

 

Stock

 

 

Loss

 

 

Earnings

 

 

Total

 

Balance at December 28, 2019

 

36,351

 

 

$

 

490,233

 

 

$

 

(1,600

)

 

$

 

198,905

 

 

$

 

687,538

 

Impact of adoption of ASU 2016-13 (Note 2)

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,612

)

 

 

 

(1,612

)

Net earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

15,402

 

 

 

 

15,402

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

80

 

 

 

 

 

 

 

 

80

 

Dividends - $0.1925 per share

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,997

)

 

 

 

(6,997

)

Share repurchase

 

(861

)

 

 

 

(10,000

)

 

 

 

 

 

 

 

 

 

 

 

(10,000

)

Stock-based employee compensation

 

 

 

 

 

2,342

 

 

 

 

 

 

 

 

 

 

 

 

2,342

 

Issuances of common stock for stock bonus plan

and associate stock purchase plan

 

21

 

 

 

 

291

 

 

 

 

 

 

 

 

 

 

 

 

291

 

Issuance of restricted stock

 

293

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cancellations of stock-based awards

 

(122

)

 

 

 

(1,352

)

 

 

 

 

 

 

 

 

 

 

 

(1,352

)

Balance at April 18, 2020

 

35,682

 

 

$

 

481,514

 

 

$

 

(1,520

)

 

$

 

205,698

 

 

$

 

685,692

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to condensed consolidated financial statements.

 

7


 

SPARTANNASH COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands, Unaudited)

 

16 Weeks Ended

 

 

April 24, 2021

 

 

April 18, 2020

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

Net earnings

$

 

19,516

 

 

$

 

15,402

 

Adjustments to reconcile net earnings to net cash (used in) provided by operating activities:

 

 

 

 

 

 

 

 

 

Non-cash restructuring, asset impairment, and other charges

 

 

(345

)

 

 

 

9,425

 

Depreciation and amortization

 

 

28,091

 

 

 

 

28,029

 

Non-cash rent

 

 

(944

)

 

 

 

(1,823

)

LIFO expense

 

 

1,655

 

 

 

 

1,583

 

Postretirement benefits expense (income)

 

 

960

 

 

 

 

(224

)

Deferred taxes on income

 

 

10,967

 

 

 

 

3,068

 

Stock-based compensation expense

 

 

4,185

 

 

 

 

2,342

 

Stock warrant

 

 

645

 

 

 

 

 

(Gain) loss on disposals of assets

 

 

(182

)

 

 

 

3,911

 

Other operating activities

 

 

468

 

 

 

 

376

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

11,077

 

 

 

 

(73,854

)

Inventories

 

 

(62,435

)

 

 

 

18,957

 

Prepaid expenses and other assets

 

 

(3,972

)

 

 

 

(5,725

)

Accounts payable

 

 

(15,539

)

 

 

 

122,168

 

Accrued payroll and benefits

 

 

(34,130

)

 

 

 

11,569

 

Income taxes

 

 

7,251

 

 

 

 

(3,862

)

Other accrued expenses and other liabilities

 

 

954

 

 

 

 

(2,046

)

Net cash (used in) provided by operating activities

 

 

(31,778

)

 

 

 

129,296

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(22,124

)

 

 

 

(17,893

)

Net proceeds from the sale of assets

 

 

25,826

 

 

 

 

3,609

 

Loans to customers

 

 

(130

)

 

 

 

(612

)

Payments from customers on loans

 

 

693

 

 

 

 

946

 

Other investing activities

 

 

(8

)

 

 

 

(1

)

Net cash provided by (used in) investing activities

 

 

4,257

 

 

 

 

(13,951

)

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

Proceeds from senior secured credit facility

 

 

484,142

 

 

 

 

332,155

 

Payments on senior secured credit facility

 

 

(442,559

)

 

 

 

(423,142

)

Repayment of other long-term debt and finance lease liabilities

 

 

(1,514

)

 

 

 

(1,957

)

Share repurchase

 

 

 

 

 

 

(10,000

)

Net payments related to stock-based award activities

 

 

(2,079

)

 

 

 

(1,352

)

Dividends paid

 

 

(7,119

)

 

 

 

(13,904

)

Other financing activities

 

 

39

 

 

 

 

(62

)

Net cash provided by (used in) financing activities

 

 

30,910

 

 

 

 

(118,262

)

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

 

3,389

 

 

 

 

(2,917

)

Cash and cash equivalents at beginning of period

 

 

19,903

 

 

 

 

24,172

 

Cash and cash equivalents at end of period

$

 

23,292

 

 

$

 

21,255

 

See accompanying notes to condensed consolidated financial statements.

 

 


8


 

SPARTANNASH COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

Note 1 – Summary of Significant Accounting Policies and Basis of Presentation

The accompanying unaudited condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of SpartanNash Company and its subsidiaries (“SpartanNash” or “the Company”). Intercompany accounts and transactions have been eliminated. For further information, refer to the consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended January 2, 2021.

In the opinion of management, the accompanying condensed consolidated financial statements, taken as a whole, contain all adjustments, including normal recurring items, necessary to present fairly the financial position of SpartanNash as of April 24, 2021, and the results of its operations and cash flows for the interim periods presented. The preparation of the condensed consolidated financial statements and related notes to the financial statements requires management to make estimates. Estimates are based on historical experience, where applicable, and expectations of future outcomes which management believes are reasonable under the circumstances. Interim results are not necessarily indicative of results for a full year.  

The unaudited information in the condensed consolidated financial statements for the first quarters of 2021 and 2020 include the results of operations of the Company for the 16-week periods ended April 24, 2021 and April 18, 2020, respectively.

Note 2 – Adoption of New Accounting Standards and Recently Issued Accounting Standards  

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments – Credit Losses”. The ASU changed the impairment model for most financial assets and certain other instruments. The standard requires entities to use a forward-looking “expected loss” model that replaces the previous “incurred loss” model, which generally results in earlier recognition of credit losses.

In the first quarter of 2020, the Company adopted this standard through the modified retrospective approach, with a cumulative-effect adjustment at the beginning of the fiscal year. As a result of the adoption, the Company has established revised processes and controls to estimate expected losses for trade and other receivables in accordance with the new standard. The Company’s process for estimating losses for trade and other receivables includes an evaluation of both historical collection experience and expectations for current credit risks based on several customer and environmental factors.

9


The adoption of the standard resulted in a transition adjustment to 2020 beginning of the year retained earnings of $2.2 million (gross of the deferred tax impact of $0.6 million). The transition adjustment relates to incremental trade and notes receivable allowances due to the earlier recognition of expected losses under the new standard of $1.9 million and $0.3 million, respectively.

Note 3 Revenue

Disaggregation of Revenue

The following table provides information about disaggregated revenue by type of products and customers for each of the Company’s reportable segments:

 

 

16 Weeks Ended April 24, 2021

 

(In thousands)

 

Food Distribution

 

 

Retail