Annual Report of Employee Stock Plans (11-k)

Date : 05/31/2019 @ 9:55PM
Source : Edgar (US Regulatory)
Stock : SpartanNash Company (SPTN)
Quote : 12.85  0.58 (4.73%) @ 3:00PM

Annual Report of Employee Stock Plans (11-k)

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 11-K

 

(Mark One):

 

[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the fiscal year ended December 31, 2018

 

OR

 

[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period from                 to           

 

Commission File No. 000-31127

 

A. Full title of the plan and the address of the plan, if different from that of the issuer named below: SPARTANNASH COMPANY SAVINGS PLUS PLAN

 

B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: SPARTANNASH COMPANY, 850 76 th STREET, S.W., GRAND RAPIDS, MICHIGAN 49518-8700

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

REQUIRED INFORMATION

 

The following financial statements and schedule are filed as part of this report:

 

Report of Independent Registered Public Accounting Firm

 

Statements of Net Assets Available for Benefits

  as of December 31, 2018 and 2017

 

Statements of Changes in Net Assets Available for Benefits for the years ended

  December 31, 2018 and December 31, 2017

 

Notes to Financial Statements

 

Supplemental Schedule as of December 31, 2018

 

EXHIBITS

 

The following exhibits are filed as part of this report:

 

 

 


 


 

SIGNATURES

 

The Plan .  Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on their behalf by the undersigned thereunto duly authorized.

 

 

 

 

 

SPARTANNASH COMPANY

 

 

 

 

SAVINGS PLUS PLAN

 

 

 

 

 

 

 

Dated:

 

May 31, 2019

 

By:

 

SPARTANNASH COMPANY

 

 

 

 

 

 

Plan Administrator

 

 

 

 

 

 

 

 

 

 

 

By:

 

/s/ Mark E. Shamber

 

 

 

 

 

 

Mark E. Shamber

 

 

 

 

 

 

Chief Financial Officer

 

 

 

 

 

 

(Principal Financial Officer)

 

 


 


 

SpartanNash Company

Savings Plus Plan

 

 

 

 

Financial Statements

and

Supplementary Information

 

 

 

 

For the Years Ended

December 31, 2018 and 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

SpartanNash Company Savings Plus Plan

 

TABLE OF CONTENTS

 

 

 

 

 

PAGE

 

 

 

 

Report of Independent Registered Public Accounting Firm

 

1-2

 

 

 

 

Financial Statements for the Years Ended December 31, 2018 and 2017

 

 

 

 

 

 

 

Statements of Net Assets Available for Benefits

 

3

 

 

 

 

 

Statements of Changes in Net Assets Available for Benefits

 

4

 

 

 

 

 

Notes to Financial Statements

 

5-14

 

 

 

 

Supplementary Information as of December 31, 2018

 

 

 

 

 

 

 

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

 

16

 

 

 

 


 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

 

Plan Administrator

SpartanNash Company Savings Plus Plan

850 76 th Street

Grand Rapids, Michigan 49518

 

Opinion on the Financial Statements

 

We have audited the accompanying statements of net assets available for benefits of the SpartanNash Company Savings Plus Plan (the “Plan”) as of December 31, 2018 and 2017, and the related statements of changes in net assets available for benefits for the years then ended, and the related notes and schedule (collectively referred to as the financial statements).

 

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2018 and 2017, and the changes in net assets available for benefits for the years then ended in conformity with accounting principles generally accepted in the United States of America.

 

Basis for Opinion

 

These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on the Plan’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to SpartanNash Company Savings Plus Plan in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinions.

 

 


 

Supplemental Information

 

The accompanying December 31, 2018 supplemental schedule of assets (held at end of year) has been subjected to audit procedures performed in conjunction with the audit of the SpartanNash Company Savings Plus Plan financial statements. The supplemental information is the responsibility of the Plan’s management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental schedule. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole.

 

 

/s/Rehmann Robson LLC

 

REHMANN ROBSON LLC

 

We have served as SpartanNash Company Savings Plus Plan’s independent auditor since 2005.

 

Grand Rapids, Michigan

May 31, 2019

 


 

 

 

SpartanNash Company Savings Plus Plan

STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS

 

 

 

December 31,

 

 

 

2018

 

 

2017

 

ASSETS

 

 

 

 

 

 

 

 

Investments at fair value

 

 

 

 

 

 

 

 

Plan interest in SpartanNash Company Savings Plus Master Trust

 

$

456,470,376

 

 

$

497,632,959

 

 

 

 

 

 

 

 

 

 

Receivables

 

 

 

 

 

 

 

 

Employer contributions

 

 

-

 

 

 

180,423

 

Participant contributions

 

 

-

 

 

 

502,843

 

Notes receivable from participants

 

 

6,844,376

 

 

 

6,873,667

 

 

 

 

 

 

 

 

 

 

Total receivables

 

 

6,844,376

 

 

 

7,556,933

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

463,314,752

 

 

 

505,189,892

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

Excess contributions payable (equal to total liabilities)

 

 

411,522

 

 

 

408,616

 

 

 

 

 

 

 

 

 

 

Net assets available for benefits

 

$

462,903,230

 

 

$

504,781,276

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements.


-3 -


 

SpartanNash Company Savings Plus Plan

STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS

 

 

 

Years Ended December 31,

 

 

 

2018

 

 

2017

 

Additions to net assets attributed to

 

 

 

 

 

 

 

 

Contributions

 

 

 

 

 

 

 

 

Participants

 

$

21,474,895

 

 

$

20,616,264

 

Employer

 

 

7,216,989

 

 

 

6,965,752

 

Rollover

 

 

930,565

 

 

 

3,854,714

 

 

 

 

 

 

 

 

 

 

Total contributions

 

 

29,622,449

 

 

 

31,436,730

 

 

 

 

 

 

 

 

 

 

Investment (loss) income

 

 

 

 

 

 

 

 

Net (depreciation) appreciation in aggregate fair value of

   investment in SpartanNash Company Savings Plus Master Trust

 

 

(37,474,227)

 

 

 

62,527,337

 

Dividends and interest

 

 

12,973,938

 

 

 

12,617,526

 

 

 

 

 

 

 

 

 

 

Total investment (loss) income

 

 

(24,500,289)

 

 

 

75,144,863

 

 

 

 

 

 

 

 

 

 

Interest income – notes receivable from participants

 

 

415,826

 

 

 

374,279

 

 

 

 

 

 

 

 

 

 

Total additions

 

 

5,537,986

 

 

 

106,955,872

 

 

 

 

 

 

 

 

 

 

Deductions from net assets attributed to

 

 

 

 

 

 

 

 

Benefits paid to participants

 

 

46,477,635

 

 

 

40,328,739

 

Administrative expenses

 

 

932,867

 

 

 

863,899

 

 

 

 

 

 

 

 

 

 

Total deductions

 

 

47,410,502

 

 

 

41,192,638

 

 

 

 

 

 

 

 

 

 

Net (decrease) increase before Plan transfers

 

 

(41,872,516)

 

 

 

65,763,234

 

 

 

 

 

 

 

 

 

 

Net transfers to union plan

 

 

(5,530)

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Net (decrease) increase

 

 

(41,878,046)

 

 

 

65,763,234

 

 

 

 

 

 

 

 

 

 

Net assets available for benefits

 

 

 

 

 

 

 

 

Beginning of year

 

 

504,781,276

 

 

 

439,018,042

 

 

 

 

 

 

 

 

 

 

End of year

 

$

462,903,230

 

 

$

504,781,276

 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

 

-4 -


SpartanNash Company Savings Plus Plan

 

Notes to Financial Statements

 

 

 

1.

DESCRIPTION OF THE PLAN AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

The following description of the SpartanNash Company Savings Plus Plan , (the “Plan”) provides only general information.  Participants should refer to the Plan agreement for a more complete description of the Plan’s provisions.

 

Description of the Plan

 

General

 

The Plan is a defined contribution plan covering all non-union associates of SpartanNash Company (the “Plan Sponsor” or “Company”) as well as union associates of Military Distributors of Virginia (“MDV”), a division of SpartanNash, at the Landover, Maryland; Norfolk, Virginia; and Columbus, Georgia distribution facilities.  Associates are eligible to participate in the Plan and make a deferral on the first date of entry after the participant completes six months of service and attains age 21.  The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).

 

On January 6, 2017, the Plan Sponsor acquired certain assets and assumed certain liabilities of Caito Foods Service (“Caito”) and Blue Ribbon Transport (“BRT”), resulting in many associates formerly employed by Caito and BRT becoming associates of the Company.   These associates became eligible to participate in the Plan on February 1, 2017 if the participant had at least six months of continuous service with Caito or BRT since their  most recent hire date, and was at least age 21 as of February 1, 2017. Each other former Caito associate had to satisfy the participation requirements described in the previous paragraph to be eligible.

 

On December 31, 2018, the Plan Sponsor acquired all of the equity of Martin’s Super Markets (“Martin’s”), resulting in associates formerly employed by Martin’s becoming associates of the Company. The Plan Sponsor intends to amend the Plan to allow these associates to become eligible to participate in the Plan in 2020.

 

Contributions

 

Participants may contribute up to 75% of annual compensation as tax-deferred contributions, up to the maximum allowed by the Internal Revenue Code (“IRC”).  Participants who have attained the age of 50 before the end of the Plan year are eligible to make catch-up contributions.  The 2018 and 2017 Company contribution to each qualified participant’s account was 50% of the first 6% of eligible compensation deferred by the participant, except no matching contributions are made with regard to catch-up contributions.  Participants may also contribute amounts representing distributions (“rollovers”) from other qualified defined benefit or defined contribution plans.  The Plan was amended in 2018, effective January 1, 2019, such that the Company may make a safe harbor matching contribution to each qualified participant’s account to be equal to 100% of the first 3% of eligible compensation deferred by the participant and 50% of the next 2% eligible compensation deferred.

 

-5 -


SpartanNash Company Savings Plus Plan

 

Notes to Financial Statements

 

 

 

The Company may also elect to make a discretionary profit sharing contribution to the Plan for eligible participants.  Associates are eligible to receive discretionary profit sharing contributions on the fir st date of entry (January 1 or July 1) after the participant completes one year of service, with 1,000 hours, and attains age 21.  The profit sharing contribution is subject to the Company’s fiscal year end results and approval by management after Plan yea r end.  No profit sharing contribution s were made for 2018 or 2017.   Contributions are subject to certain Internal Revenue Service (“IRS”) limitations.

 

Contributions received from participants for 2018 and 2017 are net of payments of $411,522 and $408,616, respectively, made in 2019 and 2018, respectively, to certain active participants to return excess deferral contributions as required to satisfy the relevant nondiscrimination provisions of the Plan.  These amounts are recognized in the Plan’s statements of net assets available for benefits as “excess contributions payable” at December 31, 2018 and 2017.

 

Investment Options

 

Participants direct the investment of contributions into various investment options offered by the Plan through the SpartanNash Company Savings Plus Master Trust (the “Master Trust”) (Note 2).  The Plan offers mutual funds, common collective trusts, and a stable value common collective trust.  In addition, the Plan allows each participant to create a self-directed brokerage account in which the participant can choose from a variety of investments allowed by ERISA.  Effective December 31, 2014, the Plan no longer offers the common stock of the Plan Sponsor as an investment option for future contribution elections, however, participants may continue to hold existing shares in their accounts.  

 

Participant Accounts

 

Each participant’s account is credited with the participant’s contributions, allocations of the Company’s matching and discretionary profit sharing contributions, when made, Plan earnings or losses and charged with an allocation of administrative expenses.  Allocations are based on participant earnings, account balances, or specific participant transactions, as defined.  Participants who initiate a loan or benefit payment are charged a fee for that transaction.  The benefit to which a participant is entitled is the amount that can be provided from the participant’s vested account balance.

 

Vesting

 

Participants are immediately vested in their voluntary contributions plus actual earnings thereon.  Effective January 1, 2019, Company safe harbor contributions will be immediately 100% vested and nonforfeitable.  If a participant has a termination of employment before normal retirement age for a reason other than total disability or death, the participant’s vested percentage in their matching and discretionary profit sharing contribution accounts is based upon years of vested service.  A participant is 100% vested after five years of credited service.

 

-6 -


SpartanNash Company Savings Plus Plan

 

Notes to Financial Statements

 

 

 

Notes Receivable from Participants

 

Participants may borrow from their accounts a minimum of $1,000, up to a maximum of 50% of the participant’s vested account.  Additionally, to be non-taxable, the loan cannot exceed $50,000; reduced by the participant’s highest outstanding loan balance during the 12-month period immediately preceding the loan issuance date.  The terms for new loans from participants generally range from one to five years, or up to ten years for the purchase of a primary residence.  The loans are collateralized by the balance in the participant’s account and bear interest at annual rates ranging from 4.25% to 9.25%, which are commensurate with local prevailing rates as determined by the Plan administrator at the time of the issuance of the loan.  Loans from participants that are transferred into the Plan continue under their original terms through final payoff.  Principal and interest are reimbursed ratably through payroll deductions.

 

Payment of Benefits

 

On termination of service due to death, disability, or retirement, a participant, or his or her beneficiary, receives a lump sum amount equal to the value of the participant’s account or installment payments as defined by the Plan agreement.  All participant accounts less than $5,000 in value as of the last date of employment require a lump-sum distribution; all participants with vested accounts equal to or greater than $5,000 have the option for distribution or maintaining their accounts in the Plan.  In-service withdrawal of vested balances may be elected by participants who have reached 59 ½ years of age.  The Plan also permits withdrawals of active participants’ elective contributions and rollovers only in amounts necessary to satisfy financial hardship as defined by the Plan agreement.

 

Forfeitures

 

Forfeited nonvested accounts may be used to pay reasonable administrative expenses of the Plan or to reduce future Company matching contributions.  During 2018 and 2017, forfeited nonvested accounts of $129,612 and $119,581, respectively, were used to pay administrative expenses.  During 2018 and 2017, forfeited nonvested accounts of $450,000 and $412,337, respectively, were used to offset Company contributions.  At December 31, 2018 and 2017, forfeited nonvested accounts totaled $197,049 and $63,587, respectively.  These accounts will be used to pay future administrative expenses and reduce future employer contributions.

 

Administrative Expenses

 

The Plan’s administrative expenses are paid either by the Plan or the Company, as provided by the Plan document.  Certain administrative expenses, including an allocation of salaries, accounting, and legal fees, are paid by the Company and qualify as party-in-interest transactions which are exempt from prohibited transaction rules.  Expenses that are paid directly by the Company are excluded from these financial statements.  Fees for trustee and custodial services are paid by the Plan.  An administrative fee is charged to those participants electing to receive a distribution.  There is also an administrative service fee charged to the individual participant’s account at the time a note receivable is issued.

 

-7 -


SpartanNash Company Savings Plus Plan

 

Notes to Financial Statements

 

 

 

Summary of Significant Accounting Policies

 

Basis of Accounting

 

The financial statements of the Plan are prepared using the accrual method of accounting in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

 

Use of Estimates

 

The preparation of financial statements in conformity with GAAP requires the Plan administrator to make estimates and assumptions that affect the reported amounts of assets and liabilities and changes therein, and disclosure of contingent assets and liabilities.  Actual results could differ from those estimates.

 

Investment Valuation and Income Recognition

 

Investments are reported at fair value.  Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  The Retirement Committee determines the Plan’s valuation policies utilizing information provided by the investment advisor.  See Note 3 for discussion of fair value measurements.

 

Purchases and sales are recorded on the trade date.  Interest income is recorded on the accrual basis.  Dividends are recorded on the ex-dividend date.  Net (depreciation) appreciation in aggregate fair value includes the Plan’s gains and losses on investments bought and sold as well as held during the year.

 

Management fees and operating expenses charged to the Plan for investments in mutual funds and common collective trusts are deducted from income earned on a daily basis and are not separately reflected.  Consequently, management fees and operating expenses are reflected as a reduction of net appreciation in the aggregate fair value of such investments.

 

Notes Receivable from Participants

 

Loans from participants are measured at their principal balance plus any accrued interest.  Delinquent loans from participants are reclassified as distributions based upon the terms of the Plan agreement.  No allowance for credit losses has been recorded as of December 31, 2018 or 2017.  Interest income from loans from participants is recorded on the accrual basis.  Related fees are recorded as administrative expenses and are expensed when they are incurred.

 

Contributions

 

Participant contributions are recorded when withheld from compensation.  Employer contributions are recorded in the period in which they become the obligations of the Company.

 

Benefits Paid to Participants

 

Benefit payments to participants are recorded when paid.

 

-8 -


SpartanNash Company Savings Plus Plan

 

Notes to Financial Statements

 

 

 

Recently Issued Accounting Standards

In February 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-06, “Employee Benefit Plan Master Trust Reporting.”  ASU 2017-06 is effective on a retrospective basis for fiscal years beginning after December 15, 2018.  Earlier application is permitted.  The amendments require that all plans disclose the dollar amount of their interest in each of the general types of investments held by a Master Trust.  The amendments also require all plans to disclose: (a) their master trust’s other (non-investment) asset and liability balances; and (b) the dollar amount of the plan’s interest in each of those balances.  The adoption of this standard will not impact the Plan’s financial statements, but will require enhanced disclosures. This standard will be effective for the Plan in 2019.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.  The standard is effective for fiscal years beginning after December 15, 2019. The amendments modify the disclosure requirements on fair value measurements in FASB Accounting Standards Codification 820. Management continues to evaluate the impact of the adoption of ASU 2018-13 and its potential effect on the Plan’s financial statement disclosures.

2.

INVESTMENTS

 

The Plan’s investments consist of an interest in the Master Trust, a trust established by the Plan Sponsor and administered by Fidelity Investments Institutional Services Company, Inc. (“Fidelity”).  The Master Trust permits commingling of the trust assets of the Plan and the SpartanNash Company Savings Plus Plan for Union Associates for investment and administrative purposes.  The Master Trust assets are allocated among the participating plans by assigning to each plan those transactions (primarily contributions, benefit payments, and plan-specific expenses) that can be specifically identified and by allocating among both plans, in proportion to the fair value of the assets assigned to each plan, income and expenses resulting from the collective investment of the assets of the Master Trust.  Fidelity maintains supporting records for the purpose of allocating investments at fair value and the net gain or loss of the investment accounts to the participating plans.  The following is a summary of information regarding the trust that was prepared from information supplied by the trustee and furnished to the Plan administrator for each plan in the Master Trust.

 

The investment (loss) income for the Master Trust (including investments bought, sold, as well as held during the year) is as follows for the years ended December 31:

 

 

 

2018

 

 

2017

 

 

 

 

 

 

 

 

 

 

Total net (depreciation) appreciation in fair value of investments

 

$

(40,209,526)

 

 

$

66,806,571

 

Total dividends and interest

 

 

14,149,914

 

 

 

13,885,101

 

Total investment (loss) income

 

$

(26,059,612)

 

 

$

80,691,672

 

 

 

-9 -


SpartanNash Company Savings Plus Plan

 

Notes to Financial Statements

 

 

 

The assets of the Master Trust are summarized as follows at December 31:

 

 

 

2018

 

 

2017

 

Investments at fair value:

 

 

 

 

 

 

 

 

Mutual funds

 

$

248,088,000

 

 

$

275,725,358

 

Common Collective Trusts

 

 

187,112,824

 

 

 

201,317,111

 

Stable Value Common Collective Trust

 

 

50,410,610

 

 

 

52,483,200

 

Self-directed brokerage accounts

 

 

802,250

 

 

 

716,136

 

Common stock

 

 

2,451,586

 

 

 

4,990,193

 

 

 

 

 

 

 

 

 

 

Total investments

 

$

488,865,270

 

 

$

535,231,998

 

Plan’s investment in the Master Trust

 

$

456,470,376

 

 

$

497,632,959

 

Plan’s percentage interest in total assets of the Master Trust

 

 

93.37%

 

 

 

92.98%

 

 

3.

FAIR VALUE MEASUREMENTS

 

The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.  The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).  The three levels of fair value hierarchy are described as follows:

 

 

Level 1 :

Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Plan has the ability to access.

 

 

Level 2 :

Inputs to the valuation methodology include:

 

quoted prices for similar assets or liabilities in active markets;

 

quoted prices for identical or similar assets or liabilities in inactive markets;

 

inputs other than quoted prices that are observable for the asset or liability; and

 

inputs that are derived principally from or corroborated by observable market data by correlation or other means.

 

 

If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.

 

 

Level 3 :

Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

 

The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.  Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

 

-10 -


SpartanNash Company Savings Plus Plan

 

Notes to Financial Statements

 

 

 

The following is a description of the valuation methodologies used for assets measured at fair value.   There have been no changes in the methodolo gies used at December 31, 201 8 and 201 7 :

 

Mutual funds :  Shares held in mutual funds are valued at active market prices that represent the Net Asset Value (“NAV”) of shares held by the Plan at year end and are classified as Level 1.  The NAV is based on the value of the underlying assets owned by the fund, minus its liabilities, then divided by the number of shares outstanding.  Mutual funds held by the Plan are open-end mutual funds that are registered with the U.S. Securities and Exchange Commission (“SEC”).  These funds are required to publish their daily NAV and to transact at that price.  The mutual funds held by the Plan are therefore deemed to be actively traded.

 

Common collective investment trusts:   Valued at the NAV of units of a bank collective trust. The NAV, as provided by the custodian, is used as a practical expedient to estimate fair value and, as a result, is not assigned a level in the fair value hierarchy. The NAV is based on the fair value of the underlying investments held by the fund less its liabilities. This practical expedient is not used when it is determined to be probable that the fund will sell the investment for an amount different than the reported NAV. Participant transactions (purchases and sales) may occur daily. Were the Plan to initiate a full redemption of the collective trust, the investment adviser reserves the right to temporarily delay withdrawal from the trust in order to ensure that securities liquidations will be carried out in an orderly business manner. The fund provides for daily redemptions by the Plan at reported NAV with no advance requirements or unfunded commitments.

Stable value common collective trust:   The fair value of investments held in the Vanguard Retirement Savings Trust II, a stable value common collective trust, as of December 31, 2018 and 2017 is based on the NAV as reported by the issuer of the collective trust fund as of or close to the financial statement date. The NAV is used as a practical expedient to estimate fair value and, as a result, is not assigned a level in the fair value hierarchy.  The fund invests primarily in synthetic investment contracts backed by high-credit-quality fixed-income investments issued by insurance companies and banks structured to provide current and stable income and are designed to allow the fund to maintain a constant net asset value.  The fund provides for daily redemptions by the Plan at reported net asset value, with no advance notice requirements or unfunded commitments.

Self-directed brokerage accounts : These accounts primarily consist of mutual funds and common stocks that are valued on the basis of readily determinable market prices and are classified as Level 1.

Common stock :  SpartanNash Company common stock is valued at the closing price reported in the active market in which the individual securities are traded and is classified as Level 1.

 

The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values.  Furthermore, although Plan management believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

 

-11 -


SpartanNash Company Savings Plus Plan

 

Notes to Financial Statements

 

 

 

The following tables set forth by level, within the fair value hierarchy, the Master Trust’s investments at fair value as of December 31:

 

 

 

2018

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

NAV (1)

 

Mutual funds

 

$

248,088,001

 

 

$

248,088,001

 

 

$

-

 

 

$

-

 

 

$

-

 

Common Collective Trusts

 

 

187,112,824

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

187,112,824

 

Stable Value Common

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Collective Trust

 

 

50,410,610

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

50,410,610

 

Self-directed brokerage

accounts

 

 

802,250

 

 

 

802,250

 

 

 

-

 

 

 

-

 

 

 

-

 

Common stock

 

 

2,451,586

 

 

 

2,451,586

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total investments

 

$

488,865,271

 

 

$

251,341,837

 

 

$

-

 

 

$

-

 

 

$

237,523,434

 

 

 

 

2017

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

NAV (1)

 

Mutual funds

 

$

275,725,358

 

 

$

275,725,358

 

 

$

-

 

 

$

-

 

 

$

-

 

Common Collective Trusts

 

 

201,317,111

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

201,317,111

 

Stable Value Common

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Collective Trust

 

 

52,483,200

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

52,483,200

 

Self-directed brokerage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   accounts

 

 

716,136

 

 

 

716,136

 

 

 

-

 

 

 

-

 

 

 

-

 

Common stock

 

 

4,990,193

 

 

 

4,990,193

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total investments

 

$

535,231,998

 

 

$

281,431,687

 

 

$

-

 

 

$

-

 

 

$

253,800,311

 

 

 

(1)

Assets are measured at the NAV (or its equivalent) on a non-active market and therefore have not been classified in the fair value hierarchy.

The availability of observable market data is monitored to assess the appropriate classification of financial instruments within the fair value hierarchy.  Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another.  In such instances, the transfer is reported at the beginning of the reporting period.  Plan management evaluates the significance of transfers between levels based upon the nature of the financial instrument and size of the transfer relative to total net assets available for benefits.  There were no transfers of assets between levels for the years ended December 31, 2018 and 2017.

4.

RELATED PARTY AND PARTY-IN-INTEREST TRANSACTIONS

 

Parties-in-interest are defined under Department of Labor regulations as any fiduciary of the Plan, any party rendering service to the Plan, the employer, and certain others.  Substantially all professional fees for the administration and audit of the Plan are paid by the Company.  Other professional fees related to the trustee and custodial services for the Plan’s assets were paid by the Plan to Fidelity.  The fees paid by the Plan for these services, net of forfeitures, amounted to $803,254 and $744,318 for 2018 and 2017, respectively.

 

-12 -


SpartanNash Company Savings Plus Plan

 

Notes to Financial Statements

 

 

 

Certain investments held by the Plan are managed by Fidelity, the custodian and record-keeper of the Plan.  Such investments fall within the investment guidelines of the Plan and are considered related party transactions.   The participating plans in the Master Trust together held $ 94 , 884 , 264 and $ 110,347,417 in such investments as of December 31, 201 8 and 201 7 , respectively.

 

The Plan’s investment in SpartanNash Company common stock represents a party-in-interest transaction.  The participating plans in the Master Trust together held 142,700 and 187,039 shares of SpartanNash Company common stock as of December 31, 2018 and 2017, respectively, representing approximately 0.40% and 0.51%, respectively, of the Company’s outstanding shares as of each of those dates.

 

Cash dividends of $108,486 and $123,208 were paid to the Master Trust by the Company during 2018 and 2017, respectively, based on shares held by the Master Trust on the dates of declaration.  This dividend income is included as dividend income in the statements of changes in net assets available for benefits.

5.

INCOME TAX STATUS

 

The IRS has determined and informed the Company by a letter dated March 31, 2017, that the Plan and the related Master Trust are designed in accordance with applicable sections of the IRC. Although the Plan has been amended since receiving the determination letter, the Plan administrator believes that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC and, therefore, believes that the Plan is qualified and the related trust is tax exempt.

 

GAAP requires Plan management to evaluate tax positions taken by the Plan and recognize a tax liability or asset if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the applicable taxing authorities.  The Plan administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2018, there are no uncertain positions taken or expected to be taken that would require recognition of a liability or asset or disclosure in the financial statements.  The Plan may be subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress.  The Plan administrator believes it is no longer subject to income tax examinations for years prior to 2015.

 

6.

PLAN TERMINATION

 

Although it has not expressed the intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA.  In the event of Plan termination, participants will become 100% vested in their account.  Any unallocated assets of the Plan would be allocated to participant accounts and distributed in such a manner as the Company may determine.

 

-13 -


SpartanNash Company Savings Plus Plan

 

Notes to Financial Statements

 

 

 

7.

RISKS AND UNCERTAINTIES

 

The Plan invests in common stock of the Plan Sponsor, a stable value common collective trust, common collective trusts, common stocks, and mutual funds with underlying assets consisting of any combination of stocks, bonds, fixed income securities and other investment securities.  Investment securities are exposed to various risks, such as interest rate, market and credit risks.  Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the fair values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the statements of net assets available for benefits and the statements of changes in net assets available for benefits.

 

8.

TRANSFERS OF ASSETS TO OR FROM THE PLAN

 

Assets totaling $5,530 were transferred from the Plan to the SpartanNash Company Savings Plus Plan for Union Associates in the normal course of Plan activities during 2018 in connection with a change in employment status of certain SpartanNash Company associates.  There were no assets transferred to or from the Plan during 2017.  

 

 

 

* * * * *

 

-14 -


 

 

 

 

 

 

 

 

SUPPLEMENTARY INFORMATION

 

 

 

 


 

SpartanNash Company Savings Plus Plan

SCHEDULE H, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR)

DECEMBER 31, 2018

PLAN #002

EMPLOYER IDENTIFICATION NO. 38-0593940

 

(a)

 

(b) Identity of

Issue, Borrower,

Lessor, or

Similar Party

 

(c) Description of

Investment Including

Maturity Date, Rate of

Interest, Collateral, Par or

Maturity Value

 

(e)

Current

Value

 

 

 

 

 

 

 

 

 

 

*

 

SpartanNash Company Savings Plus

   Master Trust

 

Plan share of Master Trust

 

$

456,470,376

 

 

 

 

 

 

 

 

 

 

*

 

Notes receivable from participants

 

Maturity 1-15 years, with

   interest rates ranging between

   4.25% and 9.25%;

   collateralized by participant

   account balances

 

 

6,844,376

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

$

463,314,752

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) An asterisk in this column identifies a person or party known to be a party-in-interest.

 

-16 -

SpartanNash (NASDAQ:SPTN)
Historical Stock Chart

1 Year : From Oct 2018 to Oct 2019

Click Here for more SpartanNash Charts.

SpartanNash (NASDAQ:SPTN)
Intraday Stock Chart

Today : Monday 21 October 2019

Click Here for more SpartanNash Charts.

Latest SPTN Messages

{{bbMessage.M_Alias}} {{bbMessage.MSG_Date}} {{bbMessage.HowLongAgo}} {{bbMessage.MSG_ID}} {{bbMessage.MSG_Subject}}

Loading Messages....


No posts yet, be the first! No {{symbol}} Message Board. Create One! See More Posts on {{symbol}} Message Board See More Message Board Posts


Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.


NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.