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2011-12-31 0000105418 2012-06-30 0000105418 2013-03-14 0000105418 2012-01-01 2012-12-29 wmk:store xbrli:pure iso4217:USD xbrli:shares iso4217:USD xbrli:shares false --12-29 FY 2012 2012-12-29 10-K 0000105418 26898443 Yes Accelerated Filer 537000000 WEIS MARKETS INC No No

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<div> <div class="MetaData"> <div> (u) Advertising Costs The Company expenses advertising costs as incurred. The Company recorded advertising expense, before vendor paid cooperative advertising credits, of $23.5 million in 2012, $24.7 million in 2011 and $25.1 million in 2010 in "Operating, general and administrative expenses."</div></div> </div>

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<div> <div class="MetaData"> <div> (f) Cash and Cash Equivalents   The Company maintains its cash balances in the form of core checking accounts and money market accounts. The Company maintains cash deposits with banks that at times exceed applicable insurance limits. The Company reduces its exposure to credit risk by maintaining such deposits with high quality financial institutions that management believes are creditworthy.</div>   The Company considers investments with an original maturity of three months or less to be cash equivalents. Investment amounts classified as cash equivalents as of December 29, 2012 and December 31, 2011 totaled $8.1 million and $17.8 million, respectively. </div> </div>

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<div> <div class="MetaData"> (c) Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.</div> </div>

<div> <div class="MetaData"> (r) Cost of Sales, Including Warehousing and Distribution Expenses "Cost of sales, including warehousing and distribution expenses" consists of direct product (net of discounts and allowances), warehouse and transportation costs, as well as manufacturing facility operations.</div> </div>

<div> <div class="MetaData"> (s) Vendor Allowances Vendor allowances that relate to the Company's buying and merchandising activities are recorded as a reduction of cost of sales as they are earned, in accordance with the underlying agreement. Off-invoice and bill-back allowances are used to reduce direct product costs upon the receipt of goods. Promotional rebates and credits are accounted for as a reduction in the cost of inventory and recognized when the related inventory is sold. Volume incentive discounts are realized as a reduction of cost of sales at the time it is deemed probable and reasonably estimable that the incentive target will be reached. Long-term contract incentives, which require an exclusive vendor relationship, are allocated over the life of the contract. Promotional allowance funds for specific vendor-sponsored programs are recognized as a reduction of cost of sales as the program occurs and the funds are earned per the agreement. Cash discounts for prompt payment of invoices are realized in cost of sales as invoices are paid. Warehouse and back-haul allowances provided by suppliers for distributing their product through our distribution system are recorded in cost of sales as the required performance is completed. Warehouse rack and slotting allowances are recorded in cost of sales when new items are initially set up in the Company's distribution system, which is when the related expenses are incurred and performance under the agreement is complete. Swell allowances for damaged goods are realized in cost of sales as provided by the supplier, helping to offset product shrink losses also recorded in cost of sales.   Vendor allowances recorded as credits in cost of sales totaled $75.1 million in 2012, $66.5 million in 2011 and $60.3 million in 2010. Vendor paid cooperative advertising credits totaled $16.4 million in 2012, $18.2 million in 2011 and $18.8 million in 2010. These credits were netted against advertising costs within "Operating, general and administrative expenses." The Company had accounts receivable due from vendors of $609,000 and $95,000 for earned advertising credits and $4.6 million and $4.5 million for earned promotional discounts as of December 29, 2012 and December 31, 2011, respectively. The Company had $861,000 and $1.1 million in unearned income included in accrued liabilities for unearned vendor programs under long-term contracts for display and shelf space allocation as of December 29, 2012 and December 31, 2011, respectively.</div> </div>

<div> <div class="MetaData"> <div> (m) Store Closing Costs The Company provides for closed store liabilities relating to the estimated post-closing lease liabilities and related other exit costs associated with the store closing commitments. The closed store liabilities are usually paid over the lease terms associated with the closed stores having remaining terms ranging from two to six years. Closed store lease liabilities totaled $635,000 and $756,000 as of December 29, 2012 and December 31, 2011, respectively. The Company estimates the lease liabilities, net of estimated sublease income, using the undiscounted rent payments of closed stores.</div></div> </div>

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<div> <div> Note 10 Fair Value Information The carrying amounts for cash, accounts receivable and accounts payable approximate fair value because of the short maturities of these instruments. The fair values of the Company's marketable securities, as disclosed in Note 2, are based on quoted market prices and institutional pricing guidelines for those securities not classified as Level 1 securities. </div> </div>

3835000

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2000

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2369000

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P15Y

<div> <div class="MetaData"> (b) Definition of Fiscal Year The Company's fiscal year ends on the last Saturday in December. Fiscal 2012 was comprised of 52 weeks, ending on December 29, 2012. Fiscal 2011 was comprised of 53 weeks, ending on December 31, 2011. Fiscal 2010 was comprised of 52 weeks, ending on December 25, 2010. References to years in this annual report relate to fiscal years.</div> </div>

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<div> <div class="MetaData"> (k) Goodwill and Intangible Assets Intangible assets with an indefinite useful life are not amortized until their useful life is determined to be no longer indefinite and are tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. Goodwill is not amortized but tested for impairment for each reporting unit, on an annual basis and between annual tests in certain circumstances.   To derive the fair value of the Company's sole reporting unit, the Company uses an income approach along with an analysis of its stock value. Under the income approach, fair value of a reporting unit is determined based on estimated future cash flows discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of the Company. Estimated future cash flows are based on the Company's internal projection model. The stock value evaluation consists of measuring the average market capitalization of the Company against its total asset value of its sole reporting unit. The Company completes its impairment test in the third quarter of each fiscal year.   The results of the impairment test are subject to management's estimates and assumptions of projected cash flows and operating results. The Company believes that, based on current conditions, materially different reported results are not likely to result from long-lived asset impairments. However, a change in assumptions or market conditions could result in a change in estimated future cash flows and the likelihood of materially different reported results.   <div class="MetaData"> The Company's intangible assets and related accumulated amortization at December 29, 2012 and December 31, 2011 consisted of the following:   <div> <div> <table border="0" cellspacing="0"> <tr><td width="30%"> </td> <td width="2%"> </td> <td width="8%" align="center"> </td> <td width="2%" align="center"> </td> <td width="7%" align="center"> </td> <td width="2%" align="center"> </td> <td width="7%" align="center"> </td> <td width="2%" align="center"> </td> <td width="7%" align="center"> </td> <td width="2%" align="center"> </td> <td width="6%" align="center"> </td> <td width="2%" align="center"> </td> <td width="6%" align="center"> </td></tr> <tr valign="bottom"><td width="30%" align="left"> </td> <td width="2%" align="left"> </td> <td width="8%" align="center"> </td> <td width="2%" align="center"> </td> <td width="7%" align="center">December 29, 2012</td> <td width="2%" align="center"> </td> <td width="7%" align="center"> </td> <td width="2%" align="center"> </td> <td width="7%" align="center"> </td> <td width="2%" align="center"> </td> <td width="6%" align="center">December 31, 2011</td> <td width="2%" align="center"> </td> <td width="6%" align="center"> </td></tr> <tr valign="bottom"><td width="30%" align="left"> </td> <td width="2%" align="left"> </td> <td width="8%" align="center"> </td> <td width="2%" align="center"> </td> <td width="7%" align="center">Accumulated</td> <td width="2%" align="center"> </td> <td width="7%" align="center"> </td> <td width="2%" align="center"> </td> <td width="7%" align="center"> </td> <td width="2%" align="center"> </td> <td width="6%" align="center">Accumulated</td> <td width="2%" align="center"> </td> <td width="6%" align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="30%" align="left">(dollars in thousands)</td> <td width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="8%" align="center">Gross</td> <td width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="center">Amortization</td> <td width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="center">Net</td> <td width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="center">Gross</td> <td width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="6%" align="center">Amortization</td> <td width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="6%" align="center">Net</td></tr> <tr valign="bottom"><td style="text-indent: 0.001pt;" width="30%" align="left">Non-Compete Agreements</td> <td width="2%" align="right">$</td> <td width="8%" align="right">1,200</td> <td width="2%" align="right">$</td> <td width="7%" align="right">1,120</td> <td width="2%" align="right">$</td> <td width="7%" align="right">80</td> <td width="2%" align="right">$</td> <td width="7%" align="right">1,200</td> <td width="2%" align="right">$</td> <td width="6%" align="right">1,040</td> <td style="text-indent: 15.967pt;" width="2%" align="left">$</td> <td width="6%" align="right">160</td></tr> <tr valign="bottom"><td width="30%" align="left">Lease Acquisitions</td> <td width="2%" align="right"> </td> <td width="8%" align="right">5,330</td> <td width="2%" align="right"> </td> <td width="7%" align="right">2,961</td> <td width="2%" align="right"> </td> <td width="7%" align="right">2,369</td> <td width="2%" align="right"> </td> <td width="7%" align="right">5,409</td> <td width="2%" align="right"> </td> <td width="6%" align="right">2,795</td> <td width="2%" align="left"> </td> <td width="6%" align="right">2,614</td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" width="30%" align="left">Liquor Licenses</td> <td width="2%" align="right"> </td> <td width="8%" align="right">942</td> <td width="2%" align="right"> </td> <td width="7%" align="right">22</td> <td width="2%" align="right"> </td> <td width="7%" align="right">920</td> <td width="2%" align="right"> </td> <td width="7%" align="center">---</td> <td width="2%" align="right"> </td> <td width="6%" align="center">---</td> <td width="2%" align="left"> </td> <td width="6%" align="right">--- </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 3px double; text-indent: 0.001pt;" width="30%" align="left">Customer Lists</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right"> </td> <td style="border-bottom: #000000 3px double;" width="8%" align="right">120</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right"> </td> <td style="border-bottom: #000000 3px double;" width="7%" align="right">2</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right"> </td> <td style="border-bottom: #000000 3px double;" width="7%" align="right">118</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right"> </td> <td style="border-bottom: #000000 3px double;" width="7%" align="center">---</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right"> </td> <td style="border-bottom: #000000 3px double;" width="6%" align="center">---</td> <td style="border-bottom: #000000 3px double; text-indent: 0pt;" width="2%" align="left"> </td> <td style="border-bottom: #000000 3px double;" width="6%" align="right"> ---</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 0.001pt;" width="30%" align="left">Total</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right">7,592</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">4,105</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">3,487</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">6,609</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="6%" align="right">3,835</td> <td style="border-bottom: #000000 1px solid; text-indent: 15.967pt;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="6%" align="right">2,774</td></tr></table></div></div></div>   Intangible assets with a definite useful life are generally amortized on a straight-line basis over periods ranging from 15 to 30 years. Estimated amortization expense for the next five fiscal years is approximately $350,000 in 2013, $269,000 in 2014, $269,000 in 2015, $269,000 in 2016 and $269,000 in 2017. As of December 29, 2012, the Company has no intangible assets, other than goodwill, with indefinite lives.</div> </div>

713625000

178504000

735855000

182657000

183146000

191548000

183125000

742553000

187599000

181276000

190553000

<div> <div class="MetaData"> (l) Impairment of Long-Lived Assets The Company periodically evaluates the period of depreciation or amortization for long-lived assets to determine whether current circumstances warrant revised estimates of useful lives. The Company reviews its property and equipment for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. Recoverability is measured by a comparison of the carrying amount to the net undiscounted cash flows expected to be generated by the asset. An impairment loss would be recorded for the excess of net book value over the fair value of the asset impaired. The fair value is estimated based on expected discounted future cash flows.   With respect to owned property and equipment associated with closed stores, the value of the property and equipment is adjusted to reflect recoverable values based on the Company's prior history of disposing of similar assets and current economic conditions.   The results of impairment tests are subject to management's estimates and assumptions of projected cash flows and operating results. The Company believes that, based on current conditions, materially different reported results are not likely to result from long-lived asset impairments. However, a change in assumptions or market conditions could result in a change in estimated future cash flows and the likelihood of materially different reported results.</div> </div>

107385000

117606000

130914000

<div> <div> <div> Note 7 Income Taxes <div class="MetaData"> The provision (benefit) for income taxes consists of: <div> <table border="0" cellspacing="0"> <tr><td width="45%">  </td> <td width="2%">  </td> <td width="11%">  </td> <td width="3%">  </td> <td width="17%">  </td> <td width="3%">  </td> <td width="8%">  </td> <td width="3%">  </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 2px solid;" width="45%" align="left">(dollars in thousands) </td> <td style="border-bottom: #000000 2px solid;" width="2%" align="left">  </td> <td style="border-bottom: #000000 2px solid;" width="11%" align="center">2012 </td> <td style="border-bottom: #000000 2px solid;" width="3%" align="center">  </td> <td style="border-bottom: #000000 2px solid;" width="17%" align="center">2011 </td> <td style="border-bottom: #000000 2px solid;" width="3%" align="center">  </td> <td style="border-bottom: #000000 2px solid;" width="8%" align="center">2010 </td> <td style="border-bottom: #000000 2px solid;" width="3%" align="left">  </td></tr> <tr valign="bottom"><td width="45%" align="left">Current: </td> <td width="2%" align="left">  </td> <td width="11%" align="left">  </td> <td width="3%" align="right">  </td> <td width="17%" align="left">  </td> <td width="3%" align="left">  </td> <td width="8%" align="left">  </td> <td width="3%" align="left">  </td></tr> <tr valign="bottom"><td style="text-indent: 9.6pt;" width="45%" align="left">Federal </td> <td width="2%" align="left">$ </td> <td width="11%" align="right">30,258 </td> <td width="3%" align="right">$ </td> <td width="17%" align="right">24,518 </td> <td width="3%" align="left">$ </td> <td width="8%" align="right">1,578 </td> <td width="3%" align="left">  </td></tr> <tr valign="bottom"><td style="text-indent: 9.6pt;" width="45%" align="left">State </td> <td width="2%" align="left">  </td> <td width="11%" align="right">2,534 </td> <td width="3%" align="right">  </td> <td width="17%" align="right">781 </td> <td width="3%" align="left">  </td> <td width="8%" align="right">(679 </td> <td width="3%" align="left">) </td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" width="45%" align="left">Deferred: </td> <td width="2%" align="left">  </td> <td width="11%" align="left">  </td> <td width="3%" align="right">  </td> <td width="17%" align="left">  </td> <td width="3%" align="left">  </td> <td width="8%" align="left">  </td> <td width="3%" align="left">  </td></tr> <tr valign="bottom"><td style="text-indent: 9.6pt;" width="45%" align="left">Federal </td> <td width="2%" align="left">  </td> <td width="11%" align="right">12,107 </td> <td width="3%" align="right">  </td> <td width="17%" align="right">12,731 </td> <td width="3%" align="left">  </td> <td width="8%" align="right">33,612 </td> <td width="3%" align="left">  </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 9.599pt;" width="45%" align="left">State </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">  </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">3,504 </td> <td style="border-bottom: #000000 1px solid;" width="3%" align="right">  </td> <td style="border-bottom: #000000 1px solid;" width="17%" align="right">3,992 </td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left">  </td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right">4,583 </td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left">  </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="45%" align="left">  </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$ </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">48,403 </td> <td style="border-bottom: #000000 1px solid;" width="3%" align="right">$ </td> <td style="border-bottom: #000000 1px solid;" width="17%" align="right">42,022 </td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left">$ </td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right">39,094 </td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left">  </td></tr></table></div></div> <div class="MetaData"> The reconciliation of income taxes computed at the federal statutory rate (35% in 2012, 2011 and 2010) to the provision for income taxes is: <div> <table border="0" cellspacing="0"> <tr><td width="42%">  </td> <td width="2%">  </td> <td width="19%">  </td> <td width="2%">  </td> <td width="2%">  </td> <td width="12%">  </td> <td width="2%">  </td> <td width="2%">  </td> <td width="10%">  </td> <td width="2%">  </td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">(dollars in thousands) </td> <td align="right">  </td> <td align="center">2012 </td> <td align="center">  </td> <td align="center">  </td> <td align="center">2011 </td> <td align="center">  </td> <td align="center">  </td> <td align="center">2010 </td> <td align="left">  </td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">Income taxes at federal statutory rate </td> <td align="right">$ </td> <td align="right">45,820 </td> <td align="left">  </td> <td align="right">$ </td> <td align="right">41,151 </td> <td align="left">  </td> <td align="right">$ </td> <td align="right">37,585 </td> <td align="left">  </td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">State income taxes, net of federal income tax benefit </td> <td align="right">  </td> <td align="right">3,925 </td> <td align="left">  </td> <td align="right">  </td> <td align="right">2,558 </td> <td align="left">  </td> <td align="right">  </td> <td align="right">2,538 </td> <td align="left">  </td></tr> <tr valign="bottom"><td align="left">Other </td> <td align="right">  </td> <td align="right">(1,342 </td> <td align="left">) </td> <td align="right">  </td> <td align="right">(1,687 </td> <td align="left">) </td> <td align="right">  </td> <td align="right">(1,029 </td> <td align="left">) </td></tr> <tr valign="bottom"><td width="43%" align="left">Provision for income taxes (effective tax rate 37.0%, 35.7% and 36.4%, respectively) </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$ </td> <td style="border-bottom: #000000 1px solid; text-indent: 4.5pt;" width="20%" align="right">48,403 </td> <td width="2%" align="right">  </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">$ </td> <td style="border-bottom: #000000 1px solid; text-indent: 4.5pt;" width="13%" align="right">42,022 </td> <td width="2%" align="right">  </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$ </td> <td style="border-bottom: #000000 1px solid; text-indent: 4.5pt;" width="11%" align="right">39,094 </td> <td width="2%" align="left">  </td></tr></table></div></div>   <div> </div>   <div> </div>   Cash paid for income taxes was $27,500,000, $21,000,000 and $4,123,000 in 2012, 2011 and 2010, respectively. <div class="MetaData"> The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities at December 29, 2012 and December 31, 2011, are: <div> <table border="0" cellspacing="0"> <tr><td width="48%">  </td> <td width="2%">  </td> <td width="29%">  </td> <td width="2%">  </td> <td width="2%">  </td> <td width="10%">  </td> <td width="2%">  </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">(dollars in thousands) </td> <td style="border-bottom: #000000 1px solid;" align="right">  </td> <td style="border-bottom: #000000 1px solid;" align="center">2012 </td> <td style="border-bottom: #000000 1px solid;" align="center">  </td> <td style="border-bottom: #000000 1px solid;" align="center">  </td> <td style="border-bottom: #000000 1px solid;" align="center">2011 </td> <td style="border-bottom: #000000 1px solid;" align="left">  </td></tr> <tr valign="bottom"><td align="left">Deferred tax assets: </td> <td align="right">  </td> <td align="left">  </td> <td align="left">  </td> <td align="right">  </td> <td align="left">  </td> <td align="left">  </td></tr> <tr valign="bottom"><td style="text-indent: 9.6pt;" align="left">Accounts receivable </td> <td align="right">$ </td> <td align="right">426 </td> <td align="left">  </td> <td align="right">$ </td> <td align="right">403 </td> <td align="left">  </td></tr> <tr valign="bottom"><td style="text-indent: 9.599pt;" align="left">Compensated absences </td> <td align="right">  </td> <td align="right">510 </td> <td align="left">  </td> <td align="right">  </td> <td align="right">495 </td> <td align="left">  </td></tr> <tr valign="bottom"><td style="text-indent: 9.599pt;" align="left">Long term employment incentives </td> <td align="right">  </td> <td align="right">2,891 </td> <td align="left">  </td> <td align="right">  </td> <td align="right">1,554 </td> <td align="left">  </td></tr> <tr valign="bottom"><td style="text-indent: 8.999pt;" align="left">Employee benefit plans </td> <td align="right">  </td> <td align="right">3,784 </td> <td align="left">  </td> <td align="right">  </td> <td align="right">3,496 </td> <td align="left">  </td></tr> <tr valign="bottom"><td style="text-indent: 9.6pt;" align="left">General liability insurance </td> <td align="right">  </td> <td align="right">1,113 </td> <td align="left">  </td> <td align="right">  </td> <td align="right">1,074 </td> <td align="left">  </td></tr> <tr valign="bottom"><td style="text-indent: 9.6pt;" align="left">Postretirement benefit obligations </td> <td align="right">  </td> <td align="right">6,255 </td> <td align="left">  </td> <td align="right">  </td> <td align="right">5,931 </td> <td align="left">  </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 9.6pt;" align="left">Net operating loss carryforwards </td> <td style="border-bottom: #000000 1px solid;" align="right">  </td> <td style="border-bottom: #000000 1px solid;" align="right">6,535 </td> <td style="border-bottom: #000000 1px solid;" align="left">  </td> <td style="border-bottom: #000000 1px solid;" align="right">  </td> <td style="border-bottom: #000000 1px solid;" align="right">6,825 </td> <td style="border-bottom: #000000 1px solid;" align="left">  </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 18pt;" align="left">Total deferred tax assets </td> <td style="border-bottom: #000000 1px solid;" align="right">  </td> <td style="border-bottom: #000000 1px solid;" align="right">21,514 </td> <td style="border-bottom: #000000 1px solid;" align="left">  </td> <td style="border-bottom: #000000 1px solid;" align="right">  </td> <td style="border-bottom: #000000 1px solid;" align="right">19,778 </td> <td style="border-bottom: #000000 1px solid;" align="left">  </td></tr> <tr valign="bottom"><td align="left">Deferred tax liabilities: </td> <td align="right">  </td> <td align="left">  </td> <td align="left">  </td> <td align="right">  </td> <td align="left">  </td> <td align="left">  </td></tr> <tr valign="bottom"><td style="text-indent: 9.6pt;" align="left">Inventories </td> <td align="right">  </td> <td align="right">(6,241 </td> <td align="left">) </td> <td align="right">  </td> <td align="right">(5,511 </td> <td align="left">) </td></tr> <tr valign="bottom"><td style="text-indent: 9.6pt;" align="left">Unrealized gains on marketable securities </td> <td align="right">  </td> <td align="right">(3,506 </td> <td align="left">) </td> <td align="right">  </td> <td align="right">(3,799 </td> <td align="left">) </td></tr> <tr valign="bottom"><td style="text-indent: 9.6pt;" align="left">Nondeductible accruals and other </td> <td align="right">  </td> <td align="right">(1,995 </td> <td align="left">) </td> <td align="right">  </td> <td align="right">(1,021 </td> <td align="left">) </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 9.6pt;" align="left">Depreciation </td> <td style="border-bottom: #000000 1px solid;" align="right">  </td> <td style="border-bottom: #000000 1px solid;" align="right">(102,301 </td> <td style="border-bottom: #000000 1px solid;" align="left">) </td> <td style="border-bottom: #000000 1px solid;" align="right">  </td> <td style="border-bottom: #000000 1px solid;" align="right">(86,658 </td> <td style="border-bottom: #000000 1px solid;" align="left">) </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="center">Total deferred tax liabilities </td> <td style="border-bottom: #000000 1px solid;" align="right">  </td> <td style="border-bottom: #000000 1px solid;" align="right">(114,043 </td> <td style="border-bottom: #000000 1px solid;" align="left">) </td> <td style="border-bottom: #000000 1px solid;" align="right">  </td> <td style="border-bottom: #000000 1px solid;" align="right">(96,989 </td> <td style="border-bottom: #000000 1px solid;" align="left">) </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 9.6pt;" align="left">Net deferred tax liability </td> <td style="border-bottom: #000000 1px solid;" align="right">$ </td> <td style="border-bottom: #000000 1px solid;" align="right">(92,529 </td> <td style="border-bottom: #000000 1px solid;" align="left">) </td> <td style="border-bottom: #000000 1px solid;" align="right">$ </td> <td style="border-bottom: #000000 1px solid;" align="right">(77,211 </td> <td style="border-bottom: #000000 1px solid;" align="left">) </td></tr> <tr valign="bottom"><td align="left">Current deferred liability - net </td> <td align="right">$ </td> <td align="right">(3,420 </td> <td align="left">) </td> <td align="right">$ </td> <td align="right">(4,130 </td> <td align="left">) </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">Noncurrent deferred liability - net </td> <td style="border-bottom: #000000 1px solid;" align="right">  </td> <td style="border-bottom: #000000 1px solid;" align="right">(89,109 </td> <td style="border-bottom: #000000 1px solid;" align="left">) </td> <td style="border-bottom: #000000 1px solid;" align="right">  </td> <td style="border-bottom: #000000 1px solid;" align="right">(73,081 </td> <td style="border-bottom: #000000 1px solid;" align="left">) </td></tr> <tr valign="bottom"><td style="text-indent: 9.6pt;" align="left">Net deferred tax liability </td> <td align="right">$ </td> <td align="right">(92,529 </td> <td align="left">) </td> <td align="right">$ </td> <td align="right">(77,211 </td> <td align="left">) </td></tr></table></div></div> <div class="MetaData">   The following table summarizes the activity related to the Company's unrecognized tax benefits: <div> <table border="0" cellspacing="0"> <tr><td width="59%">  </td> <td width="13%">  </td> <td width="13%">  </td> <td width="10%">  </td> <td width="4%">  </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 2px solid;" width="59%" align="left">(dollars in thousands) </td> <td style="border-bottom: #000000 2px solid;" width="13%" align="left">  </td> <td style="border-bottom: #000000 2px solid;" width="13%" align="right">2012 </td> <td style="border-bottom: #000000 2px solid;" width="10%" align="right">2011 </td> <td width="4%" align="left">  </td></tr> <tr valign="bottom"><td width="59%" align="left">Unrecognized tax benefits at beginning of year </td> <td width="13%" align="left">$ </td> <td width="13%" align="right">161 </td> <td width="10%" align="right">925 </td> <td width="4%" align="left">  </td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" width="59%" align="left">Increases based on tax positions related to the current year </td> <td width="13%" align="left">  </td> <td width="13%" align="right">--- </td> <td width="10%" align="right">--- </td> <td width="4%" align="left">  </td></tr> <tr valign="bottom"><td width="59%" align="left">Additions for tax positions of prior year </td> <td width="13%" align="left">  </td> <td width="13%" align="right">64 </td> <td width="10%" align="right">--- </td> <td width="4%" align="left">  </td></tr> <tr valign="bottom"><td width="59%" align="left">Reductions for tax positions of prior years </td> <td width="13%" align="left">  </td> <td width="13%" align="right">--- </td> <td width="10%" align="right">--- </td> <td width="4%" align="left">  </td></tr> <tr valign="bottom"><td width="59%" align="left">Settlements </td> <td width="13%" align="left">  </td> <td width="13%" align="right">--- </td> <td width="10%" align="right">(764 </td> <td width="4%" align="left">) </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="59%" align="left">Expiration of the statute of limitations for assessment of taxes </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="left">  </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">--- </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">--- </td> <td width="4%" align="left">  </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="59%" align="left">Unrecognized tax benefits at end of year </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="left">$ </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">225 </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">161 </td> <td width="4%" align="left">  </td></tr></table></div></div>     During 2012 the Company completed a final settlement with a state taxing authority resulting in a $64,000 state tax benefit net of Federal income taxes. The end of year unrecognized tax benefit of $225,000 for 2012 would impact the effective tax rate over time and if recognized would reduce the effective tax rate. Management anticipates settlement for the majority of unrecognized tax benefits within the next twelve months. The Company's U.S. Federal income tax filings have been examined by the Internal Revenue Service through 2008. The Company or one of its subsidiaries files tax returns in various states. The tax years subject to examination in Pennsylvania, where the majority of the Company's revenues are generated, are 2009 to 2012. The Company has net operating loss carryforwards of $96 million available for state income tax purposes. The net operating losses will begin to expire starting in 2027. The Company expects to fully utilize these net operating loss carryforwards.</div></div> </div>

4123000

21000000

27500000

39094000

42022000

48403000

<div> <div class="MetaData"> (o) Income Taxes The Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  </div> </div>

1226000

37585000

41151000

45820000

-1029000

-1687000

-1342000

2538000

2558000

3925000

297000

2119000

-5045000

-484000

1359000

2712000

-1486000

-1226000

8006000

-4830000

17936000

1379000

4029000

-687000

3277000

3487000

<div> <div> <div> <div> Note 3 Inventories <div class="MetaData"> Merchandise inventories, as of December 29, 2012 and December 31, 2011, were valued as follows: <div> <table border="0" cellspacing="0"> <tr><td width="43%"> </td> <td width="31%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="11%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">(dollars in thousands)</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2012</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2011</td></tr> <tr valign="bottom"><td align="left">LIFO</td> <td align="left">$</td> <td align="right">187,847</td> <td align="right">$</td> <td align="right">173,879</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">Average cost</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">57,396</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">52,312</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left">$</td> <td style="border-bottom: #000000 1px solid;" align="right">245,243</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">226,191</td></tr></table></div></div>   Management believes the use of the LIFO method for valuing certain inventories represents the most appropriate matching of costs and revenues in the Company's circumstances. If all inventories were valued on the average cost method, which approximates current cost, total inventories would have been $78,330,000 and $77,129,000 higher than as reported on the above methods as of December 29, 2012 and December 31, 2011, respectively. During 2011, the Company realized a decrement of $5.6 million in its LIFO pools.</div></div></div> </div>

-5600000

2069000

3326000

3468000

<div> <div class="MetaData"> Maturities of marketable securities classified as available-for-sale at December 29, 2012, were as follows: <div> <table border="0" cellspacing="0"> <tr><td width="51%"> </td> <td width="24%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="10%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="left"> </td> <td align="center">Amortized</td> <td align="center"> </td> <td align="center">Fair</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">(dollars in thousands)</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Cost</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Value</td></tr> <tr valign="bottom"><td align="left">Available-for-sale:</td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 9pt;" align="left">Due within one year</td> <td style="text-indent: 2.52pt;" align="left">$</td> <td align="right">4,078</td> <td align="right">$</td> <td align="right">3,933</td></tr> <tr valign="bottom"><td style="text-indent: 9pt;" align="left">Due after one year through five years</td> <td align="left"> </td> <td align="right">49,607</td> <td align="right"> </td> <td align="right">49,255</td></tr> <tr valign="bottom"><td style="text-indent: 9pt;" align="left">Due after five years through ten years</td> <td align="left"> </td> <td align="right">17,655</td> <td align="right"> </td> <td align="right">18,963</td></tr> <tr valign="bottom"><td style="text-indent: 9pt;" align="left">Due after ten years</td> <td align="left"> </td> <td align="right">1,500</td> <td align="right"> </td> <td align="right">1,500</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 8.999pt;" align="left">Equity securities</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1,136</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">8,850</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="text-indent: 2.52pt;" align="left">$</td> <td align="right">73,976</td> <td align="right">$</td> <td align="right">82,501</td></tr></table></div></div> </div>

<div> <div> <div> Note 2 Marketable Securities <div> The Company's marketable securities are all classified as available-for-sale. FASB has established three levels of inputs that may be used to measure fair value: Level 1 Observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2 Observable inputs, other than Level 1 inputs in active markets, that are observable either directly or indirectly; and Level 3 Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions. The Company's marketable securities valued using Level 1 inputs include highly liquid equity securities, for which quoted market prices are available. The Company's bond portfolio is valued using Level 2 inputs. The Company's bonds are valued using a combination of pricing for similar securities, recently executed transactions, cash flow models with yield curves and other pricing models utilizing observable inputs, which are considered Level 2 inputs.  </div></div> </div> <div> <div>For Level 2 investment valuation, the Company utilizes standard pricing procedures of its investment brokerage firm(s) which include various third party pricing services such as FT Interactive Data, Reuters, Bloomberg and JP Morgan Pricing Direct. These procedures also require specific price monitoring practices as well as pricing review reports, valuation oversight and pricing challenge procedures to maintain the most accurate representation of investment fair market value. In addition, the Company engaged an independent firm to value a sample of the Company's municipal bond holdings in order to validate the investment's assigned fair value in 2012.</div>   <div class="MetaData"> Marketable securities, as of December 29, 2012 and December 31, 2011, consisted of: <div> <table border="0" cellspacing="0"> <tr><td width="29%"> </td> <td width="16%"> </td> <td width="8%"> </td> <td width="6%"> </td> <td width="7%"> </td> <td width="2%"> </td> <td width="14%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="9%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="left"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center">Gross</td> <td align="center"> </td> <td align="center">Gross</td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td></tr> <tr valign="bottom"><td align="left">(dollars in thousands)</td> <td align="left"> </td> <td align="center">Amortized</td> <td align="center"> </td> <td align="center">Unrealized</td> <td align="center"> </td> <td align="center">Unrealized</td> <td align="center"> </td> <td align="center"> </td> <td align="center">Fair</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">December 29, 2012</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Cost</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Holding Gains</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Holding Losses</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Value</td></tr> <tr valign="bottom"><td align="left">Available-for-sale:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 9pt;" align="left">Level 1</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 18pt;" align="left">Equity securities</td> <td style="text-indent: 2.52pt;" align="left">$</td> <td align="right">1,136</td> <td style="text-indent: 14.4pt;" align="left">$</td> <td align="right">7,714</td> <td align="right">$</td> <td align="right">---</td> <td align="left"> </td> <td align="right">$</td> <td align="right">8,850</td></tr> <tr><td colspan="10"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 9pt;" align="left">Level 2</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 18pt;" align="left">Municipal bonds</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">72,840</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1,308</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(497</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">73,651</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 2.52pt;" align="left">$</td> <td style="border-bottom: #000000 1px solid;" align="right">73,976</td> <td style="border-bottom: #000000 1px solid; text-indent: 14.4pt;" align="left">$</td> <td style="border-bottom: #000000 1px solid;" align="right">9,022</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">(497</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">82,501</td></tr></table></div>   <div> <table border="0" cellspacing="0"> <tr><td width="29%"> </td> <td width="2%"> </td> <td width="24%"> </td> <td width="2%"> </td> <td width="14%"> </td> <td width="7%"> </td> <td width="7%"> </td> <td width="2%"> </td> <td width="9%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="right"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> Gross</td> <td align="center"> </td> <td align="center">Gross</td> <td align="center"> </td> <td align="center"> </td></tr> <tr valign="bottom"><td align="left">(dollars in thousands)</td> <td align="right"> </td> <td align="center">Amortized</td> <td align="center"> </td> <td align="center"> Unrealized</td> <td align="center"> </td> <td align="center">Unrealized</td> <td align="center"> </td> <td align="center">Fair</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">December 31, 2011</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Cost</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Holding Gains</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Holding Losses</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Value</td></tr> <tr valign="bottom"><td align="left">Available-for-sale:</td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 9pt;" align="left">Level 1</td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 18pt;" align="left">Equity securities</td> <td align="right">$</td> <td align="right">1,713</td> <td align="right">$</td> <td align="right">7,735</td> <td style="text-indent: 20.16pt;" align="left">$</td> <td align="right">---</td> <td align="right">$</td> <td align="right">9,448</td></tr> <tr><td colspan="9"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 9pt;" align="left">Level 2</td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 18pt;" align="left">Municipal bonds</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">78,388</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1,512</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">---</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">79,900</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">80,101</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">9,247</td> <td style="border-bottom: #000000 1px solid; text-indent: 20.16pt;" align="left">$</td> <td style="border-bottom: #000000 1px solid;" align="right">---</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">89,348</td></tr></table></div></div> <div class="MetaData"> Maturities of marketable securities classified as available-for-sale at December 29, 2012, were as follows: <div> <table border="0" cellspacing="0"> <tr><td width="51%"> </td> <td width="24%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="10%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="left"> </td> <td align="center">Amortized</td> <td align="center"> </td> <td align="center">Fair</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">(dollars in thousands)</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Cost</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Value</td></tr> <tr valign="bottom"><td align="left">Available-for-sale:</td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 9pt;" align="left">Due within one year</td> <td style="text-indent: 2.52pt;" align="left">$</td> <td align="right">4,078</td> <td align="right">$</td> <td align="right">3,933</td></tr> <tr valign="bottom"><td style="text-indent: 9pt;" align="left">Due after one year through five years</td> <td align="left"> </td> <td align="right">49,607</td> <td align="right"> </td> <td align="right">49,255</td></tr> <tr valign="bottom"><td style="text-indent: 9pt;" align="left">Due after five years through ten years</td> <td align="left"> </td> <td align="right">17,655</td> <td align="right"> </td> <td align="right">18,963</td></tr> <tr valign="bottom"><td style="text-indent: 9pt;" align="left">Due after ten years</td> <td align="left"> </td> <td align="right">1,500</td> <td align="right"> </td> <td align="right">1,500</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 8.999pt;" align="left">Equity securities</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1,136</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">8,850</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="text-indent: 2.52pt;" align="left">$</td> <td align="right">73,976</td> <td align="right">$</td> <td align="right">82,501</td></tr></table></div></div>    </div> </div>

283118000

294750000

1029004000

1090440000

191820000

183409000

173879000

187847000

<div> <div> Note 11 Contingencies The Company is involved in various legal actions arising out of the normal course of business. The Company also accrues for tax contingencies when it is probable that a liability to a taxing authority has been incurred and the amount of the contingency can be reasonably estimated, based on past experience. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company's consolidated financial position, results of operations or liquidity.  </div> </div>

<div> <div> (g) Marketable Securities Marketable securities consist of municipal bonds and equity securities. The Company invests primarily in high-grade marketable securities. The Company classifies all of its marketable securities as available-for-sale.   Available-for-sale securities are recorded at fair value as determined by quoted market price based on national markets. Unrealized holding gains and losses, net of the related tax effect, are excluded from earnings and are reported as a separate component of shareholders' equity until realized. A decline in the fair value below cost that is deemed other than temporary results in a charge to earnings and the establishment of a new cost basis for the security. Dividend and interest income is recognized when earned. Realized gains and losses are included in earnings and are derived using the specific identification method for determining the cost of securities.</div> </div>

<div> <div> <div> <div> Note 8 Acquisition of Business Fiscal 2012 Acquisitions On June 11, 2012, Weis Markets, Inc. acquired three former Genuardi's stores located in Conshohocken, Doylestown and Norristown, Pennsylvania from Safeway Inc. Weis Markets, Inc. acquired the store locations and operations of these three former Genuardi's stores in an effort to establish its retail presence in the Delaware Valley. The results of operations of the three former Genuardi's stores are included in the accompanying consolidated financial statements from the date of acquisition. The three former Genuardi's stores contributed $22.1 million to sales in 2012. The cash purchase price paid to Safeway Inc. was $6.1 million. The Company recognized a gain of $414,000 on the bargain purchase. The purchased assets include inventories, equipment and intangible assets. Weis Markets, Inc. assumed all three lease obligations of the former Genuardi's stores. <div class="MetaData"> The following table summarizes the fair values of the assets acquired at the date of acquisition. <div> <table border="0" cellspacing="0"> <tr><td width="51%"> </td> <td width="12%"> </td> <td width="36%"> </td></tr> <tr valign="bottom"><td align="left">(dollars in thousands)</td> <td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center">June 11, 2012</td></tr> <tr valign="bottom"><td align="left">Inventories</td> <td align="left">$</td> <td align="right">1,116</td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">Equipment</td> <td align="left"> </td> <td align="right">5,294</td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">Intangible assets</td> <td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">120</td></tr> <tr valign="bottom"><td align="left">Total assets acquired</td> <td align="left">$</td> <td style="border-bottom: #000000 1px solid;" align="right">6,530</td></tr></table></div></div>   Fiscal 2011 Acquisitions There were no acquisitions for fiscal 2011. Fiscal 2010 Acquisitions There were no acquisitions for fiscal 2010.</div></div></div> <div> <div>                                                        </div></div> </div>

-31203000

-58370000

-32278000

-73464000

-165787000

-107636000

146742000

152409000

123961000

68291000

18601000

75584000

20701000

16982000

19300000

20026000

82511000

23204000

17178000

22103000

11500000

0.25

6800000

<div> <div> <div> <div> <div> <div> <div> <div> <div> <div> (w) Current Relevant Accounting Standards In May 2011, the Financial Accounting Standards Board (FASB) issued new authoritative guidance to achieve a consistent definition of fair value and ensure that the fair value measurement and disclosure requirements are similar between U.S. GAAP and International Financial Reporting Standards. This new guidance amends current fair value measurement and disclosure guidance to include increased transparency around valuation inputs and investment categorization. This new guidance is effective for fiscal years and interim periods beginning after December 15, 2011. Adoption of the new guidance did not have an impact on the Company's consolidated financial statements.   In September 2011, FASB issued additional authoritative guidance on testing goodwill for impairment. The guidance permits an entity to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. This new guidance is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Adoption of the new guidance did not have an impact on the Company's consolidated financial statements.   In December 2011, the FASB and International Accounting Standards Board jointly issued additional authoritative guidance to enhance disclosure requirements, including both gross and net information, for instruments and transactions eligible for offset in the statement of financial position as well as instruments and transactions subject to an agreement similar to a master netting arrangement. The guidance is effective for annual reporting periods beginning on or after January 1, 2013 and is to be applied retrospectively. In January 2013, FASB amended the additional authoritative guidance to clarify the scope. The amendments clarify that the guidance only applies to derivatives including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset or subject to an enforceable master netting arrangement or similar agreement. The Company is no longer subject to the disclosure requirements.   In February 2013, FASB issued additional authoritative guidance on comprehensive income and the reporting of amounts reclassified out of accumulated other comprehensive income. This guidance requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. This new guidance is effective prospectively for reporting periods beginning after December 15, 2012. The adoption of this new guidance will require additional disclosures and presentation of items impacting other comprehensive income but will not have an impact on the Company's consolidated financial statements.</div></div></div></div></div></div></div></div></div> </div>

105316000

114280000

127032000

224182000

32194000

21169000

25213000

28714000

32323000

84569000

14431000

3411000

1241000

2155000

2780000

3116000

1728000

598000

512000

134000

33285000

30970000

30141000

27369000

24778000

23923000

6514000

6704000

6352000

96000000

405000

1391000

-9000

275000

545000

-429000

-130000

-846000

-420000

93000

601000

293000

288000

923000

414000

3783000

7026000

2000

31201000

58370000

32278000

12245000

81885000

13790000

6116000

121000

439000

69869000

110517000

109774000

<div> <div> <div> Note 6 Retirement Plans The Company has a contributory retirement savings plan, the Weis Markets, Inc. Retirement Savings Plan, covering substantially all full-time associates. The Company had a noncontributory profit-sharing plan, the Weis Markets, Inc. Profit Sharing Plan, covering eligible associates which included certain salaried associates, store management and administrative support personnel. Effective December 1, 2009, the Weis Markets, Inc. Profit Sharing Plan was merged into the Weis Markets, Inc. Retirement Savings Plan. The Company also has three supplemental retirement plans covering highly compensated employees of the Company. The Company's policy is to fund all qualified retirement plan costs as accrued, but not supplemental retirement costs. Employer contributions to the qualified retirement plans are made at the sole discretion of the Company. As of December 31, 2006, the Weis Markets, Inc. Employee Stock Bonus Plan was terminated, and subsequently all plan assets were distributed to participants or beneficiaries by December 31, 2009. <div class="MetaData"> Retirement plan costs: <div> <table border="0" cellspacing="0"> <tr><td width="40%"> </td> <td width="2%"> </td> <td width="24%"> </td> <td width="2%"> </td> <td width="13%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 0pt;" align="left">(dollars in thousands)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2012</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">Retirement savings plan</td> <td align="right">$</td> <td align="right">1,560</td> <td align="right">$</td> <td align="right">1,242</td> <td align="left"> </td> <td align="right">$</td> <td align="right">1,134</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">Profit-sharing plan</td> <td align="right"> </td> <td align="right">1,650</td> <td align="right"> </td> <td align="right">1,650</td> <td align="left"> </td> <td align="right"> </td> <td align="right">1,414</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Employee stock bonus plan</td> <td align="right">-</td> <td align="right">--</td> <td align="right">-</td> <td align="right">--</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(3</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">Deferred compensation plan</td> <td align="right"> </td> <td align="right">291</td> <td align="right"> </td> <td align="right">(26</td> <td align="left">)</td> <td align="right"> </td> <td align="right">570</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">Supplemental retirement plan</td> <td align="right"> </td> <td align="right">1,105</td> <td align="right"> </td> <td align="right">111</td> <td align="left"> </td> <td align="right"> </td> <td align="right">798</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 0pt;" align="left">Pharmacist deferred compensation plan</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">198</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(17</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">81</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">4,804</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">2,960</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">3,994</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr></table></div></div>   The Company maintains a non-qualified deferred compensation plan for the payment of specific amounts of annual retirement benefits to certain officers or their beneficiaries over an actuarially computed normal life expectancy. The benefits are determined through actuarial calculations dependent on the age of the recipient, using an assumed discount rate. The plan is unfunded and accounted for on an accrual basis. The projected benefit obligations are equal to the liability for pension benefits included in "Accrued expenses" and "Postretirement benefit obligations" in the Consolidated Balance Sheets. <div class="MetaData"> Change in the benefit obligations: <div> <table border="0" cellspacing="0"> <tr><td width="48%"> </td> <td width="2%"> </td> <td width="31%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">(dollars in thousands)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2012</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Benefit obligations at beginning of year</td> <td align="right">$</td> <td align="right">7,487</td> <td align="left"> </td> <td align="right">$</td> <td align="right">7,744</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Interest cost</td> <td align="right"> </td> <td align="right">557</td> <td align="left"> </td> <td align="right"> </td> <td align="right">564</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">Benefit payments</td> <td align="right"> </td> <td align="right">(51</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(232</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">Actuarial loss</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(267</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(589</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">7,726</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">7,487</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr></table></div></div>   <div> </div> <div class="MetaData"> <table border="0" cellspacing="0"> <tr><td width="64%"> </td> <td width="20%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">Weighted-average assumptions used to determine benefit obligations:</td> <td style="border-bottom: #000000 1px solid;" align="center">2012</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Discount rate</td> <td align="right">7.50</td> <td align="left">%</td> <td align="right">7.50</td> <td align="left">%</td></tr></table></div> <div class="MetaData"> Components of net periodic benefit cost: <div> <table border="0" cellspacing="0"> <tr><td width="38%"> </td> <td width="2%"> </td> <td width="29%"> </td> <td width="2%"> </td> <td width="13%"> </td> <td width="2%"> </td> <td width="9%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">(dollars in thousands)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2012</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2010</td></tr> <tr valign="bottom"><td align="left">Interest cost</td> <td align="right">$</td> <td align="right">557</td> <td align="right">$</td> <td align="right">564</td> <td align="right">$</td> <td align="right">538</td></tr> <tr valign="bottom"><td align="left">Amount of recognized gain</td> <td align="right"> </td> <td align="right">318</td> <td align="right"> </td> <td align="right">821</td> <td align="right"> </td> <td align="right">200</td></tr></table></div></div> <div class="MetaData"> Estimated future benefit payments: <div> <table border="0" cellspacing="0"> <tr><td width="52%"> </td> <td width="2%"> </td> <td width="44%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 0pt;" align="left">(dollars in thousands)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Benefits</td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">2013</td> <td align="right">$</td> <td align="right">51</td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">2014</td> <td align="right"> </td> <td align="right">1,603</td></tr> <tr valign="bottom"><td align="left">2015</td> <td align="right"> </td> <td align="right">1,603</td></tr> <tr valign="bottom"><td align="left">2016</td> <td align="right"> </td> <td align="right">1,603</td></tr> <tr valign="bottom"><td align="left">2017</td> <td align="right"> </td> <td align="right">1,603</td></tr> <tr valign="bottom"><td align="left">2018 – 2022</td> <td align="right"> </td> <td align="right">8,014</td></tr></table></div></div>       The Company also maintains a non-qualified supplemental executive retirement plan and a non-qualified pharmacist deferred compensation plan for certain of its associates. These plans are designed to provide retirement benefits and salary deferral opportunities because of limitations imposed by the Internal Revenue Code and the Regulations implemented by the Internal Revenue Service. These plans are unfunded and accounted for on an accrual basis. Participants in these plans are excluded from participation in the profit sharing portion of the Weis Markets, Inc. Retirement Savings Plan once their yearly earnings exceed the IRS highly compensated threshold. The Board of Directors annually determines the amount of the allocation to the plans at its sole discretion. The allocation among the various plan participants is made in both flat dollar amounts and in relationship to their compensation. Plan participants are 100% vested in their accounts after six years of service with the Company. Benefits are distributed among participants upon reaching the applicable retirement age. Substantial risk of benefit forfeiture does exist for participants in these plans. The present value of accumulated benefits amounted to $7,531,000 and $6,999,000 at December 29, 2012 and December 31, 2011, respectively, and is included in "Postretirement benefit obligations" in the Consolidated Balance Sheets. The Company has no other postretirement benefit plans.</div></div>   </div>

3994000

570000

-3000

81000

1414000

1134000

798000

2960000

-26000

-17000

1650000

1242000

111000

4804000

291000

198000

1650000

1560000

1105000

8995000

10132000

<div> <div class="MetaData"> (e) Reclassifications The Company reclassified certain immaterial amounts in the Consolidated Balance Sheets.  </div> </div>

6296000

8620000

341000

16019000

19941000

2013000

2097000

2542000

<div> <div> <div> <div> <div> <div> <div> Note 4 Property and Equipment <div class="MetaData"> Property and equipment, as of December 29, 2012 and December 31, 2011, consisted of: <div> <table border="0" cellspacing="0"> <tr><td width="47%"> </td> <td width="23%"> </td> <td width="3%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="11%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="center">Useful Life</td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 0pt;" align="left">(dollars in thousands)</td> <td style="border-bottom: #000000 1px solid;" align="center">(in years)</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 9pt;" align="left">2012</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 18pt;" align="left">2011</td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">Land</td> <td align="left"> </td> <td align="left">$</td> <td align="right">97,810</td> <td align="right">$</td> <td align="right">93,676</td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">Buildings and improvements</td> <td align="center">10-60</td> <td align="left"> </td> <td align="right">508,253</td> <td align="right"> </td> <td align="right">492,024</td></tr> <tr valign="bottom"><td align="left">Equipment</td> <td align="center">3-12</td> <td align="left"> </td> <td align="right">817,822</td> <td align="right"> </td> <td align="right">759,158</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">Leasehold improvements</td> <td style="border-bottom: #000000 1px solid;" align="center">5-20</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">168,879</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">144,057</td></tr> <tr valign="bottom"><td style="text-indent: 18pt;" align="left">Total, at cost</td> <td align="left"> </td> <td align="left"> </td> <td align="right">1,592,764</td> <td align="right"> </td> <td align="right">1,488,915</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 0pt;" align="left">Less accumulated depreciation and amortization</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">954,130</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">913,912</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left">$</td> <td style="border-bottom: #000000 1px solid;" align="right">638,634</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">575,003</td></tr></table></div></div>  </div></div></div></div></div></div> </div>

1488915000

492024000

759158000

93676000

144057000

1592764000

508253000

817822000

97810000

168879000

575003000

638634000

<div> <div class="MetaData"> (j) Property and Equipment In the first quarter of 2012, the Company changed its accounting policy for property and equipment. Property and equipment continue to be recorded at cost. Prior to January 1, 2012, the Company provided for depreciation of buildings and improvements and equipment using accelerated methods. Effective January 1, 2012, the Company changed its method of depreciation for this group of assets from the accelerated methods to straight-line. Management deemed the change preferable because the straight-line method will more accurately reflect the pattern of usage and the expected benefits of such assets. Management also considered that the change will provide greater consistency with the depreciation methods used by other companies in the Company's industry. The change was accounted for as a change in accounting estimate effected by a change in accounting principle. The net book value of assets acquired prior to January 1, 2012 with useful lives remaining will be depreciated using the straight-line method prospectively. If the Company had continued using accelerated methods, depreciation expense would have been $11.5 million greater in 2012. Had accelerated methods continued to be used, after considering the impact of income taxes, the effect would decrease net income by $6.8 million or $.25 per share in 2012.   Leasehold improvements are unaffected by the change noted above. Leasehold improvements continue to be amortized using the straight line method over the terms of the leases or the useful lives of the assets, whichever is shorter.   <div> Maintenance and repairs are expensed and renewals and betterments are capitalized. When assets are retired or otherwise disposed of, the assets and accumulated depreciation are removed from the respective accounts and any profit or loss on the disposition is credited or charged to "Operating, general and administrative expenses."</div></div> </div>

<div> <div class="MetaData"> Property and equipment, as of December 29, 2012 and December 31, 2011, consisted of: <div> <table border="0" cellspacing="0"> <tr><td width="47%"> </td> <td width="23%"> </td> <td width="3%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="11%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="center">Useful Life</td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 0pt;" align="left">(dollars in thousands)</td> <td style="border-bottom: #000000 1px solid;" align="center">(in years)</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 9pt;" align="left">2012</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 18pt;" align="left">2011</td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">Land</td> <td align="left"> </td> <td align="left">$</td> <td align="right">97,810</td> <td align="right">$</td> <td align="right">93,676</td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">Buildings and improvements</td> <td align="center">10-60</td> <td align="left"> </td> <td align="right">508,253</td> <td align="right"> </td> <td align="right">492,024</td></tr> <tr valign="bottom"><td align="left">Equipment</td> <td align="center">3-12</td> <td align="left"> </td> <td align="right">817,822</td> <td align="right"> </td> <td align="right">759,158</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">Leasehold improvements</td> <td style="border-bottom: #000000 1px solid;" align="center">5-20</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">168,879</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">144,057</td></tr> <tr valign="bottom"><td style="text-indent: 18pt;" align="left">Total, at cost</td> <td align="left"> </td> <td align="left"> </td> <td align="right">1,592,764</td> <td align="right"> </td> <td align="right">1,488,915</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 0pt;" align="left">Less accumulated depreciation and amortization</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">954,130</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">913,912</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left">$</td> <td style="border-bottom: #000000 1px solid;" align="right">638,634</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">575,003</td></tr></table></div></div> </div>

P60Y

P10Y

P12Y

P3Y

P20Y

P5Y

<div> <div> Note 9 Summary of Quarterly Results (Unaudited) <div class="MetaData"> Quarterly financial data for 2012 and 2011 are as follows: <div> <table border="0" cellspacing="0"> <tr><td width="35%"> </td> <td width="2%"> </td> <td width="20%"> </td> <td width="3%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="12%"> </td></tr> <tr valign="bottom"><td width="35%" align="left">(dollars in thousands,</td> <td width="2%" align="right"> </td> <td width="20%" align="left"> </td> <td width="3%" align="left"> </td> <td width="12%" align="left"> </td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td> <td width="2%" align="right"> </td> <td width="12%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="35%" align="left">except per share amounts)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="20%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="17%" colspan="3" align="center">Thirteen Weeks Ended</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="35%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 6.119pt;" width="20%" align="center">March 31, 2012</td> <td width="3%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center">June 30, 2012</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="center">Sep. 29, 2012</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center">Dec. 29, 2012</td></tr> <tr valign="bottom"><td width="35%" align="left">Net sales</td> <td width="2%" align="right">$</td> <td width="20%" align="right">661,610</td> <td style="text-indent: 8.279pt;" width="3%" align="left">$</td> <td width="12%" align="right">677,097</td> <td width="2%" align="right">$</td> <td width="11%" align="right">668,391</td> <td width="2%" align="right">$</td> <td width="12%" align="right">694,307</td></tr> <tr valign="bottom"><td width="35%" align="left">Gross profit on sales</td> <td width="2%" align="right"> </td> <td width="20%" align="right">183,125</td> <td width="3%" align="left"> </td> <td width="12%" align="right">187,599</td> <td width="2%" align="left"> </td> <td width="11%" align="right">181,276</td> <td width="2%" align="right"> </td> <td width="12%" align="right">190,553</td></tr> <tr valign="bottom"><td width="35%" align="left">Net income</td> <td width="2%" align="right"> </td> <td width="20%" align="right">20,026</td> <td width="3%" align="left"> </td> <td width="12%" align="right">23,204</td> <td width="2%" align="left"> </td> <td width="11%" align="right">17,178</td> <td width="2%" align="right"> </td> <td width="12%" align="right">22,103</td></tr> <tr valign="bottom"><td width="35%" align="left">Basic and diluted earnings per share</td> <td width="2%" align="right"> </td> <td width="20%" align="right">.74</td> <td width="3%" align="left"> </td> <td width="12%" align="right">.86</td> <td width="2%" align="left"> </td> <td width="11%" align="right">.64</td> <td width="2%" align="right"> </td> <td width="12%" align="right">.83</td></tr></table></div>   <div> <table border="0" cellspacing="0"> <tr><td width="33%"> </td> <td width="2%"> </td> <td width="20%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="12%"> </td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">(dollars in thousands,</td> <td align="right"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center">Fourteen</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 0pt;" align="left">except per share amounts)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Thirteen Weeks Ended</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Weeks Ended</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 7.44pt;" align="center">March 26, 2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">June 25, 2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Sep. 24, 2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Dec. 31, 2011</td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">Net sales</td> <td align="right">$</td> <td align="right">659,455</td> <td style="text-indent: 5.16pt;" align="left">$</td> <td align="right">676,660</td> <td align="right">$</td> <td align="right">678,612</td> <td align="right">$</td> <td align="right">737,777</td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">Gross profit on sales</td> <td align="right"> </td> <td align="right">178,504</td> <td align="left"> </td> <td align="right">182,657</td> <td align="left"> </td> <td align="right">183,146</td> <td align="right"> </td> <td align="right">191,548</td></tr> <tr valign="bottom"><td align="left">Net income</td> <td align="right"> </td> <td align="right">18,601</td> <td align="left"> </td> <td align="right">20,701</td> <td align="left"> </td> <td align="right">16,982</td> <td align="right"> </td> <td align="right">19,300</td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">Basic and diluted earnings per share</td> <td align="right"> </td> <td align="right">.69</td> <td align="left"> </td> <td align="right">.77</td> <td align="left"> </td> <td align="right">.63</td> <td align="right"> </td> <td align="right">.72</td></tr></table></div></div>  </div> </div>

881346000

931579000

<div> <div> (v) Rental Income The Company leases or subleases space to tenants in owned, vacated and open store facilities. Rental income is recorded when earned as a component of "Operating, general and administrative expenses." All leases are operating leases, as disclosed in Note 5, and do not contain upfront considerations.</div> </div>

2620378000

659455000

2752504000

676660000

678612000

737777000

661610000

2701405000

677097000

668391000

694307000

<div> <div class="MetaData"> Change in the benefit obligations: <div> <table border="0" cellspacing="0"> <tr><td width="48%"> </td> <td width="2%"> </td> <td width="31%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">(dollars in thousands)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2012</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Benefit obligations at beginning of year</td> <td align="right">$</td> <td align="right">7,487</td> <td align="left"> </td> <td align="right">$</td> <td align="right">7,744</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Interest cost</td> <td align="right"> </td> <td align="right">557</td> <td align="left"> </td> <td align="right"> </td> <td align="right">564</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">Benefit payments</td> <td align="right"> </td> <td align="right">(51</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(232</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">Actuarial loss</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(267</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(589</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">7,726</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">7,487</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr></table></div></div> </div>

<div> <div class="MetaData"> <table border="0" cellspacing="0"> <tr><td width="64%"> </td> <td width="20%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">Weighted-average assumptions used to determine benefit obligations:</td> <td style="border-bottom: #000000 1px solid;" align="center">2012</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Discount rate</td> <td align="right">7.50</td> <td align="left">%</td> <td align="right">7.50</td> <td align="left">%</td></tr></table></div> </div>

<div> <div class="MetaData"> Marketable securities, as of December 29, 2012 and December 31, 2011, consisted of: <div> <table border="0" cellspacing="0"> <tr><td width="29%"> </td> <td width="16%"> </td> <td width="8%"> </td> <td width="6%"> </td> <td width="7%"> </td> <td width="2%"> </td> <td width="14%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="9%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="left"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center">Gross</td> <td align="center"> </td> <td align="center">Gross</td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td></tr> <tr valign="bottom"><td align="left">(dollars in thousands)</td> <td align="left"> </td> <td align="center">Amortized</td> <td align="center"> </td> <td align="center">Unrealized</td> <td align="center"> </td> <td align="center">Unrealized</td> <td align="center"> </td> <td align="center"> </td> <td align="center">Fair</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">December 29, 2012</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Cost</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Holding Gains</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Holding Losses</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Value</td></tr> <tr valign="bottom"><td align="left">Available-for-sale:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 9pt;" align="left">Level 1</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 18pt;" align="left">Equity securities</td> <td style="text-indent: 2.52pt;" align="left">$</td> <td align="right">1,136</td> <td style="text-indent: 14.4pt;" align="left">$</td> <td align="right">7,714</td> <td align="right">$</td> <td align="right">---</td> <td align="left"> </td> <td align="right">$</td> <td align="right">8,850</td></tr> <tr><td colspan="10"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 9pt;" align="left">Level 2</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 18pt;" align="left">Municipal bonds</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">72,840</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1,308</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(497</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">73,651</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 2.52pt;" align="left">$</td> <td style="border-bottom: #000000 1px solid;" align="right">73,976</td> <td style="border-bottom: #000000 1px solid; text-indent: 14.4pt;" align="left">$</td> <td style="border-bottom: #000000 1px solid;" align="right">9,022</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">(497</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">82,501</td></tr></table></div>   <div> <table border="0" cellspacing="0"> <tr><td width="29%"> </td> <td width="2%"> </td> <td width="24%"> </td> <td width="2%"> </td> <td width="14%"> </td> <td width="7%"> </td> <td width="7%"> </td> <td width="2%"> </td> <td width="9%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="right"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> Gross</td> <td align="center"> </td> <td align="center">Gross</td> <td align="center"> </td> <td align="center"> </td></tr> <tr valign="bottom"><td align="left">(dollars in thousands)</td> <td align="right"> </td> <td align="center">Amortized</td> <td align="center"> </td> <td align="center"> Unrealized</td> <td align="center"> </td> <td align="center">Unrealized</td> <td align="center"> </td> <td align="center">Fair</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">December 31, 2011</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Cost</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Holding Gains</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Holding Losses</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Value</td></tr> <tr valign="bottom"><td align="left">Available-for-sale:</td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 9pt;" align="left">Level 1</td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 18pt;" align="left">Equity securities</td> <td align="right">$</td> <td align="right">1,713</td> <td align="right">$</td> <td align="right">7,735</td> <td style="text-indent: 20.16pt;" align="left">$</td> <td align="right">---</td> <td align="right">$</td> <td align="right">9,448</td></tr> <tr><td colspan="9"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 9pt;" align="left">Level 2</td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 18pt;" align="left">Municipal bonds</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">78,388</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1,512</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">---</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">79,900</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">80,101</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">9,247</td> <td style="border-bottom: #000000 1px solid; text-indent: 20.16pt;" align="left">$</td> <td style="border-bottom: #000000 1px solid;" align="right">---</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">89,348</td></tr></table></div></div> </div>

<div> <div class="MetaData"> The provision (benefit) for income taxes consists of: <div> <table border="0" cellspacing="0"> <tr><td width="45%">  </td> <td width="2%">  </td> <td width="11%">  </td> <td width="3%">  </td> <td width="17%">  </td> <td width="3%">  </td> <td width="8%">  </td> <td width="3%">  </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 2px solid;" width="45%" align="left">(dollars in thousands) </td> <td style="border-bottom: #000000 2px solid;" width="2%" align="left">  </td> <td style="border-bottom: #000000 2px solid;" width="11%" align="center">2012 </td> <td style="border-bottom: #000000 2px solid;" width="3%" align="center">  </td> <td style="border-bottom: #000000 2px solid;" width="17%" align="center">2011 </td> <td style="border-bottom: #000000 2px solid;" width="3%" align="center">  </td> <td style="border-bottom: #000000 2px solid;" width="8%" align="center">2010 </td> <td style="border-bottom: #000000 2px solid;" width="3%" align="left">  </td></tr> <tr valign="bottom"><td width="45%" align="left">Current: </td> <td width="2%" align="left">  </td> <td width="11%" align="left">  </td> <td width="3%" align="right">  </td> <td width="17%" align="left">  </td> <td width="3%" align="left">  </td> <td width="8%" align="left">  </td> <td width="3%" align="left">  </td></tr> <tr valign="bottom"><td style="text-indent: 9.6pt;" width="45%" align="left">Federal </td> <td width="2%" align="left">$ </td> <td width="11%" align="right">30,258 </td> <td width="3%" align="right">$ </td> <td width="17%" align="right">24,518 </td> <td width="3%" align="left">$ </td> <td width="8%" align="right">1,578 </td> <td width="3%" align="left">  </td></tr> <tr valign="bottom"><td style="text-indent: 9.6pt;" width="45%" align="left">State </td> <td width="2%" align="left">  </td> <td width="11%" align="right">2,534 </td> <td width="3%" align="right">  </td> <td width="17%" align="right">781 </td> <td width="3%" align="left">  </td> <td width="8%" align="right">(679 </td> <td width="3%" align="left">) </td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" width="45%" align="left">Deferred: </td> <td width="2%" align="left">  </td> <td width="11%" align="left">  </td> <td width="3%" align="right">  </td> <td width="17%" align="left">  </td> <td width="3%" align="left">  </td> <td width="8%" align="left">  </td> <td width="3%" align="left">  </td></tr> <tr valign="bottom"><td style="text-indent: 9.6pt;" width="45%" align="left">Federal </td> <td width="2%" align="left">  </td> <td width="11%" align="right">12,107 </td> <td width="3%" align="right">  </td> <td width="17%" align="right">12,731 </td> <td width="3%" align="left">  </td> <td width="8%" align="right">33,612 </td> <td width="3%" align="left">  </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 9.599pt;" width="45%" align="left">State </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">  </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">3,504 </td> <td style="border-bottom: #000000 1px solid;" width="3%" align="right">  </td> <td style="border-bottom: #000000 1px solid;" width="17%" align="right">3,992 </td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left">  </td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right">4,583 </td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left">  </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="45%" align="left">  </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="left">$ </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="right">48,403 </td> <td style="border-bottom: #000000 1px solid;" width="3%" align="right">$ </td> <td style="border-bottom: #000000 1px solid;" width="17%" align="right">42,022 </td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left">$ </td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right">39,094 </td> <td style="border-bottom: #000000 1px solid;" width="3%" align="left">  </td></tr></table></div></div> </div>

<div> <div class="MetaData"> Retirement plan costs: <div> <table border="0" cellspacing="0"> <tr><td width="40%"> </td> <td width="2%"> </td> <td width="24%"> </td> <td width="2%"> </td> <td width="13%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 0pt;" align="left">(dollars in thousands)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2012</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">Retirement savings plan</td> <td align="right">$</td> <td align="right">1,560</td> <td align="right">$</td> <td align="right">1,242</td> <td align="left"> </td> <td align="right">$</td> <td align="right">1,134</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">Profit-sharing plan</td> <td align="right"> </td> <td align="right">1,650</td> <td align="right"> </td> <td align="right">1,650</td> <td align="left"> </td> <td align="right"> </td> <td align="right">1,414</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Employee stock bonus plan</td> <td align="right">-</td> <td align="right">--</td> <td align="right">-</td> <td align="right">--</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(3</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">Deferred compensation plan</td> <td align="right"> </td> <td align="right">291</td> <td align="right"> </td> <td align="right">(26</td> <td align="left">)</td> <td align="right"> </td> <td align="right">570</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">Supplemental retirement plan</td> <td align="right"> </td> <td align="right">1,105</td> <td align="right"> </td> <td align="right">111</td> <td align="left"> </td> <td align="right"> </td> <td align="right">798</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 0pt;" align="left">Pharmacist deferred compensation plan</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">198</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(17</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">81</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">4,804</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">2,960</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">3,994</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr></table></div></div> </div>

<div> <div class="MetaData"> The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities at December 29, 2012 and December 31, 2011, are: <div> <table border="0" cellspacing="0"> <tr><td width="48%">  </td> <td width="2%">  </td> <td width="29%">  </td> <td width="2%">  </td> <td width="2%">  </td> <td width="10%">  </td> <td width="2%">  </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">(dollars in thousands) </td> <td style="border-bottom: #000000 1px solid;" align="right">  </td> <td style="border-bottom: #000000 1px solid;" align="center">2012 </td> <td style="border-bottom: #000000 1px solid;" align="center">  </td> <td style="border-bottom: #000000 1px solid;" align="center">  </td> <td style="border-bottom: #000000 1px solid;" align="center">2011 </td> <td style="border-bottom: #000000 1px solid;" align="left">  </td></tr> <tr valign="bottom"><td align="left">Deferred tax assets: </td> <td align="right">  </td> <td align="left">  </td> <td align="left">  </td> <td align="right">  </td> <td align="left">  </td> <td align="left">  </td></tr> <tr valign="bottom"><td style="text-indent: 9.6pt;" align="left">Accounts receivable </td> <td align="right">$ </td> <td align="right">426 </td> <td align="left">  </td> <td align="right">$ </td> <td align="right">403 </td> <td align="left">  </td></tr> <tr valign="bottom"><td style="text-indent: 9.599pt;" align="left">Compensated absences </td> <td align="right">  </td> <td align="right">510 </td> <td align="left">  </td> <td align="right">  </td> <td align="right">495 </td> <td align="left">  </td></tr> <tr valign="bottom"><td style="text-indent: 9.599pt;" align="left">Long term employment incentives </td> <td align="right">  </td> <td align="right">2,891 </td> <td align="left">  </td> <td align="right">  </td> <td align="right">1,554 </td> <td align="left">  </td></tr> <tr valign="bottom"><td style="text-indent: 8.999pt;" align="left">Employee benefit plans </td> <td align="right">  </td> <td align="right">3,784 </td> <td align="left">  </td> <td align="right">  </td> <td align="right">3,496 </td> <td align="left">  </td></tr> <tr valign="bottom"><td style="text-indent: 9.6pt;" align="left">General liability insurance </td> <td align="right">  </td> <td align="right">1,113 </td> <td align="left">  </td> <td align="right">  </td> <td align="right">1,074 </td> <td align="left">  </td></tr> <tr valign="bottom"><td style="text-indent: 9.6pt;" align="left">Postretirement benefit obligations </td> <td align="right">  </td> <td align="right">6,255 </td> <td align="left">  </td> <td align="right">  </td> <td align="right">5,931 </td> <td align="left">  </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 9.6pt;" align="left">Net operating loss carryforwards </td> <td style="border-bottom: #000000 1px solid;" align="right">  </td> <td style="border-bottom: #000000 1px solid;" align="right">6,535 </td> <td style="border-bottom: #000000 1px solid;" align="left">  </td> <td style="border-bottom: #000000 1px solid;" align="right">  </td> <td style="border-bottom: #000000 1px solid;" align="right">6,825 </td> <td style="border-bottom: #000000 1px solid;" align="left">  </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 18pt;" align="left">Total deferred tax assets </td> <td style="border-bottom: #000000 1px solid;" align="right">  </td> <td style="border-bottom: #000000 1px solid;" align="right">21,514 </td> <td style="border-bottom: #000000 1px solid;" align="left">  </td> <td style="border-bottom: #000000 1px solid;" align="right">  </td> <td style="border-bottom: #000000 1px solid;" align="right">19,778 </td> <td style="border-bottom: #000000 1px solid;" align="left">  </td></tr> <tr valign="bottom"><td align="left">Deferred tax liabilities: </td> <td align="right">  </td> <td align="left">  </td> <td align="left">  </td> <td align="right">  </td> <td align="left">  </td> <td align="left">  </td></tr> <tr valign="bottom"><td style="text-indent: 9.6pt;" align="left">Inventories </td> <td align="right">  </td> <td align="right">(6,241 </td> <td align="left">) </td> <td align="right">  </td> <td align="right">(5,511 </td> <td align="left">) </td></tr> <tr valign="bottom"><td style="text-indent: 9.6pt;" align="left">Unrealized gains on marketable securities </td> <td align="right">  </td> <td align="right">(3,506 </td> <td align="left">) </td> <td align="right">  </td> <td align="right">(3,799 </td> <td align="left">) </td></tr> <tr valign="bottom"><td style="text-indent: 9.6pt;" align="left">Nondeductible accruals and other </td> <td align="right">  </td> <td align="right">(1,995 </td> <td align="left">) </td> <td align="right">  </td> <td align="right">(1,021 </td> <td align="left">) </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 9.6pt;" align="left">Depreciation </td> <td style="border-bottom: #000000 1px solid;" align="right">  </td> <td style="border-bottom: #000000 1px solid;" align="right">(102,301 </td> <td style="border-bottom: #000000 1px solid;" align="left">) </td> <td style="border-bottom: #000000 1px solid;" align="right">  </td> <td style="border-bottom: #000000 1px solid;" align="right">(86,658 </td> <td style="border-bottom: #000000 1px solid;" align="left">) </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="center">Total deferred tax liabilities </td> <td style="border-bottom: #000000 1px solid;" align="right">  </td> <td style="border-bottom: #000000 1px solid;" align="right">(114,043 </td> <td style="border-bottom: #000000 1px solid;" align="left">) </td> <td style="border-bottom: #000000 1px solid;" align="right">  </td> <td style="border-bottom: #000000 1px solid;" align="right">(96,989 </td> <td style="border-bottom: #000000 1px solid;" align="left">) </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 9.6pt;" align="left">Net deferred tax liability </td> <td style="border-bottom: #000000 1px solid;" align="right">$ </td> <td style="border-bottom: #000000 1px solid;" align="right">(92,529 </td> <td style="border-bottom: #000000 1px solid;" align="left">) </td> <td style="border-bottom: #000000 1px solid;" align="right">$ </td> <td style="border-bottom: #000000 1px solid;" align="right">(77,211 </td> <td style="border-bottom: #000000 1px solid;" align="left">) </td></tr> <tr valign="bottom"><td align="left">Current deferred liability - net </td> <td align="right">$ </td> <td align="right">(3,420 </td> <td align="left">) </td> <td align="right">$ </td> <td align="right">(4,130 </td> <td align="left">) </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">Noncurrent deferred liability - net </td> <td style="border-bottom: #000000 1px solid;" align="right">  </td> <td style="border-bottom: #000000 1px solid;" align="right">(89,109 </td> <td style="border-bottom: #000000 1px solid;" align="left">) </td> <td style="border-bottom: #000000 1px solid;" align="right">  </td> <td style="border-bottom: #000000 1px solid;" align="right">(73,081 </td> <td style="border-bottom: #000000 1px solid;" align="left">) </td></tr> <tr valign="bottom"><td style="text-indent: 9.6pt;" align="left">Net deferred tax liability </td> <td align="right">$ </td> <td align="right">(92,529 </td> <td align="left">) </td> <td align="right">$ </td> <td align="right">(77,211 </td> <td align="left">) </td></tr></table></div></div> </div>

<div> <div class="MetaData"> The reconciliation of income taxes computed at the federal statutory rate (35% in 2012, 2011 and 2010) to the provision for income taxes is: <div> <table border="0" cellspacing="0"> <tr><td width="42%">  </td> <td width="2%">  </td> <td width="19%">  </td> <td width="2%">  </td> <td width="2%">  </td> <td width="12%">  </td> <td width="2%">  </td> <td width="2%">  </td> <td width="10%">  </td> <td width="2%">  </td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">(dollars in thousands) </td> <td align="right">  </td> <td align="center">2012 </td> <td align="center">  </td> <td align="center">  </td> <td align="center">2011 </td> <td align="center">  </td> <td align="center">  </td> <td align="center">2010 </td> <td align="left">  </td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">Income taxes at federal statutory rate </td> <td align="right">$ </td> <td align="right">45,820 </td> <td align="left">  </td> <td align="right">$ </td> <td align="right">41,151 </td> <td align="left">  </td> <td align="right">$ </td> <td align="right">37,585 </td> <td align="left">  </td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">State income taxes, net of federal income tax benefit </td> <td align="right">  </td> <td align="right">3,925 </td> <td align="left">  </td> <td align="right">  </td> <td align="right">2,558 </td> <td align="left">  </td> <td align="right">  </td> <td align="right">2,538 </td> <td align="left">  </td></tr> <tr valign="bottom"><td align="left">Other </td> <td align="right">  </td> <td align="right">(1,342 </td> <td align="left">) </td> <td align="right">  </td> <td align="right">(1,687 </td> <td align="left">) </td> <td align="right">  </td> <td align="right">(1,029 </td> <td align="left">) </td></tr> <tr valign="bottom"><td width="43%" align="left">Provision for income taxes (effective tax rate 37.0%, 35.7% and 36.4%, respectively) </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$ </td> <td style="border-bottom: #000000 1px solid; text-indent: 4.5pt;" width="20%" align="right">48,403 </td> <td width="2%" align="right">  </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">$ </td> <td style="border-bottom: #000000 1px solid; text-indent: 4.5pt;" width="13%" align="right">42,022 </td> <td width="2%" align="right">  </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$ </td> <td style="border-bottom: #000000 1px solid; text-indent: 4.5pt;" width="11%" align="right">39,094 </td> <td width="2%" align="left">  </td></tr></table></div></div> </div>

<div> <div class="MetaData"> Estimated future benefit payments: <div> <table border="0" cellspacing="0"> <tr><td width="52%"> </td> <td width="2%"> </td> <td width="44%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 0pt;" align="left">(dollars in thousands)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Benefits</td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">2013</td> <td align="right">$</td> <td align="right">51</td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">2014</td> <td align="right"> </td> <td align="right">1,603</td></tr> <tr valign="bottom"><td align="left">2015</td> <td align="right"> </td> <td align="right">1,603</td></tr> <tr valign="bottom"><td align="left">2016</td> <td align="right"> </td> <td align="right">1,603</td></tr> <tr valign="bottom"><td align="left">2017</td> <td align="right"> </td> <td align="right">1,603</td></tr> <tr valign="bottom"><td align="left">2018 – 2022</td> <td align="right"> </td> <td align="right">8,014</td></tr></table></div></div> </div>

<div> <div class="MetaData"> The Company's intangible assets and related accumulated amortization at December 29, 2012 and December 31, 2011 consisted of the following:   <div> <div> <table border="0" cellspacing="0"> <tr><td width="30%"> </td> <td width="2%"> </td> <td width="8%" align="center"> </td> <td width="2%" align="center"> </td> <td width="7%" align="center"> </td> <td width="2%" align="center"> </td> <td width="7%" align="center"> </td> <td width="2%" align="center"> </td> <td width="7%" align="center"> </td> <td width="2%" align="center"> </td> <td width="6%" align="center"> </td> <td width="2%" align="center"> </td> <td width="6%" align="center"> </td></tr> <tr valign="bottom"><td width="30%" align="left"> </td> <td width="2%" align="left"> </td> <td width="8%" align="center"> </td> <td width="2%" align="center"> </td> <td width="7%" align="center">December 29, 2012</td> <td width="2%" align="center"> </td> <td width="7%" align="center"> </td> <td width="2%" align="center"> </td> <td width="7%" align="center"> </td> <td width="2%" align="center"> </td> <td width="6%" align="center">December 31, 2011</td> <td width="2%" align="center"> </td> <td width="6%" align="center"> </td></tr> <tr valign="bottom"><td width="30%" align="left"> </td> <td width="2%" align="left"> </td> <td width="8%" align="center"> </td> <td width="2%" align="center"> </td> <td width="7%" align="center">Accumulated</td> <td width="2%" align="center"> </td> <td width="7%" align="center"> </td> <td width="2%" align="center"> </td> <td width="7%" align="center"> </td> <td width="2%" align="center"> </td> <td width="6%" align="center">Accumulated</td> <td width="2%" align="center"> </td> <td width="6%" align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="30%" align="left">(dollars in thousands)</td> <td width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="8%" align="center">Gross</td> <td width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="center">Amortization</td> <td width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="center">Net</td> <td width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="center">Gross</td> <td width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="6%" align="center">Amortization</td> <td width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="6%" align="center">Net</td></tr> <tr valign="bottom"><td style="text-indent: 0.001pt;" width="30%" align="left">Non-Compete Agreements</td> <td width="2%" align="right">$</td> <td width="8%" align="right">1,200</td> <td width="2%" align="right">$</td> <td width="7%" align="right">1,120</td> <td width="2%" align="right">$</td> <td width="7%" align="right">80</td> <td width="2%" align="right">$</td> <td width="7%" align="right">1,200</td> <td width="2%" align="right">$</td> <td width="6%" align="right">1,040</td> <td style="text-indent: 15.967pt;" width="2%" align="left">$</td> <td width="6%" align="right">160</td></tr> <tr valign="bottom"><td width="30%" align="left">Lease Acquisitions</td> <td width="2%" align="right"> </td> <td width="8%" align="right">5,330</td> <td width="2%" align="right"> </td> <td width="7%" align="right">2,961</td> <td width="2%" align="right"> </td> <td width="7%" align="right">2,369</td> <td width="2%" align="right"> </td> <td width="7%" align="right">5,409</td> <td width="2%" align="right"> </td> <td width="6%" align="right">2,795</td> <td width="2%" align="left"> </td> <td width="6%" align="right">2,614</td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" width="30%" align="left">Liquor Licenses</td> <td width="2%" align="right"> </td> <td width="8%" align="right">942</td> <td width="2%" align="right"> </td> <td width="7%" align="right">22</td> <td width="2%" align="right"> </td> <td width="7%" align="right">920</td> <td width="2%" align="right"> </td> <td width="7%" align="center">---</td> <td width="2%" align="right"> </td> <td width="6%" align="center">---</td> <td width="2%" align="left"> </td> <td width="6%" align="right">--- </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 3px double; text-indent: 0.001pt;" width="30%" align="left">Customer Lists</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right"> </td> <td style="border-bottom: #000000 3px double;" width="8%" align="right">120</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right"> </td> <td style="border-bottom: #000000 3px double;" width="7%" align="right">2</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right"> </td> <td style="border-bottom: #000000 3px double;" width="7%" align="right">118</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right"> </td> <td style="border-bottom: #000000 3px double;" width="7%" align="center">---</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right"> </td> <td style="border-bottom: #000000 3px double;" width="6%" align="center">---</td> <td style="border-bottom: #000000 3px double; text-indent: 0pt;" width="2%" align="left"> </td> <td style="border-bottom: #000000 3px double;" width="6%" align="right"> ---</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 0.001pt;" width="30%" align="left">Total</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right">7,592</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">4,105</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">3,487</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">6,609</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="6%" align="right">3,835</td> <td style="border-bottom: #000000 1px solid; text-indent: 15.967pt;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="6%" align="right">2,774</td></tr></table></div></div></div> </div>

<div> <div class="MetaData"> <table border="0" cellspacing="0"> <tr><td width="40%"> </td> <td width="2%"> </td> <td width="38%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">(dollars in thousands)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Leases</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Subleases</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">2013</td> <td align="right">$</td> <td align="right">32,194</td> <td align="right">$</td> <td align="right">(3,411</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">2014</td> <td align="right"> </td> <td align="right">32,323</td> <td align="right"> </td> <td align="right">(3,116</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">2015</td> <td align="left"> </td> <td align="right">28,714</td> <td align="right"> </td> <td align="right">(2,780</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">2016</td> <td align="left"> </td> <td align="right">25,213</td> <td align="right"> </td> <td align="right">(2,155</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">2017</td> <td align="left"> </td> <td align="right">21,169</td> <td align="right"> </td> <td align="right">(1,241</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 0pt;" align="left">Thereafter</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">84,569</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(1,728</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left">$</td> <td style="border-bottom: #000000 1px solid;" align="right">224,182</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">(14,431</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr></table></div> </div>

<div> <div class="MetaData"> Merchandise inventories, as of December 29, 2012 and December 31, 2011, were valued as follows: <div> <table border="0" cellspacing="0"> <tr><td width="43%"> </td> <td width="31%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="11%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">(dollars in thousands)</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2012</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2011</td></tr> <tr valign="bottom"><td align="left">LIFO</td> <td align="left">$</td> <td align="right">187,847</td> <td align="right">$</td> <td align="right">173,879</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">Average cost</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">57,396</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">52,312</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left">$</td> <td style="border-bottom: #000000 1px solid;" align="right">245,243</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">226,191</td></tr></table></div></div> </div>

<div> <div class="MetaData"> Components of net periodic benefit cost: <div> <table border="0" cellspacing="0"> <tr><td width="38%"> </td> <td width="2%"> </td> <td width="29%"> </td> <td width="2%"> </td> <td width="13%"> </td> <td width="2%"> </td> <td width="9%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">(dollars in thousands)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2012</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2010</td></tr> <tr valign="bottom"><td align="left">Interest cost</td> <td align="right">$</td> <td align="right">557</td> <td align="right">$</td> <td align="right">564</td> <td align="right">$</td> <td align="right">538</td></tr> <tr valign="bottom"><td align="left">Amount of recognized gain</td> <td align="right"> </td> <td align="right">318</td> <td align="right"> </td> <td align="right">821</td> <td align="right"> </td> <td align="right">200</td></tr></table></div></div> </div>

<div> <div class="MetaData"> The following table summarizes the fair values of the assets acquired at the date of acquisition. <div> <table border="0" cellspacing="0"> <tr><td width="51%"> </td> <td width="12%"> </td> <td width="36%"> </td></tr> <tr valign="bottom"><td align="left">(dollars in thousands)</td> <td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center">June 11, 2012</td></tr> <tr valign="bottom"><td align="left">Inventories</td> <td align="left">$</td> <td align="right">1,116</td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">Equipment</td> <td align="left"> </td> <td align="right">5,294</td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">Intangible assets</td> <td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">120</td></tr> <tr valign="bottom"><td align="left">Total assets acquired</td> <td align="left">$</td> <td style="border-bottom: #000000 1px solid;" align="right">6,530</td></tr></table></div></div> </div>

<div> <div class="MetaData"> Quarterly financial data for 2012 and 2011 are as follows: <div> <table border="0" cellspacing="0"> <tr><td width="35%"> </td> <td width="2%"> </td> <td width="20%"> </td> <td width="3%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="12%"> </td></tr> <tr valign="bottom"><td width="35%" align="left">(dollars in thousands,</td> <td width="2%" align="right"> </td> <td width="20%" align="left"> </td> <td width="3%" align="left"> </td> <td width="12%" align="left"> </td> <td width="2%" align="left"> </td> <td width="11%" align="left"> </td> <td width="2%" align="right"> </td> <td width="12%" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="35%" align="left">except per share amounts)</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="20%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="17%" colspan="3" align="center">Thirteen Weeks Ended</td> <td style="border-bottom: #000000 1px solid;" width="11%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="35%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 6.119pt;" width="20%" align="center">March 31, 2012</td> <td width="3%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center">June 30, 2012</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="11%" align="center">Sep. 29, 2012</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="12%" align="center">Dec. 29, 2012</td></tr> <tr valign="bottom"><td width="35%" align="left">Net sales</td> <td width="2%" align="right">$</td> <td width="20%" align="right">661,610</td> <td style="text-indent: 8.279pt;" width="3%" align="left">$</td> <td width="12%" align="right">677,097</td> <td width="2%" align="right">$</td> <td width="11%" align="right">668,391</td> <td width="2%" align="right">$</td> <td width="12%" align="right">694,307</td></tr> <tr valign="bottom"><td width="35%" align="left">Gross profit on sales</td> <td width="2%" align="right"> </td> <td width="20%" align="right">183,125</td> <td width="3%" align="left"> </td> <td width="12%" align="right">187,599</td> <td width="2%" align="left"> </td> <td width="11%" align="right">181,276</td> <td width="2%" align="right"> </td> <td width="12%" align="right">190,553</td></tr> <tr valign="bottom"><td width="35%" align="left">Net income</td> <td width="2%" align="right"> </td> <td width="20%" align="right">20,026</td> <td width="3%" align="left"> </td> <td width="12%" align="right">23,204</td> <td width="2%" align="left"> </td> <td width="11%" align="right">17,178</td> <td width="2%" align="right"> </td> <td width="12%" align="right">22,103</td></tr> <tr valign="bottom"><td width="35%" align="left">Basic and diluted earnings per share</td> <td width="2%" align="right"> </td> <td width="20%" align="right">.74</td> <td width="3%" align="left"> </td> <td width="12%" align="right">.86</td> <td width="2%" align="left"> </td> <td width="11%" align="right">.64</td> <td width="2%" align="right"> </td> <td width="12%" align="right">.83</td></tr></table></div>   <div> <table border="0" cellspacing="0"> <tr><td width="33%"> </td> <td width="2%"> </td> <td width="20%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="12%"> </td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">(dollars in thousands,</td> <td align="right"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center">Fourteen</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 0pt;" align="left">except per share amounts)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Thirteen Weeks Ended</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Weeks Ended</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 7.44pt;" align="center">March 26, 2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">June 25, 2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Sep. 24, 2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Dec. 31, 2011</td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">Net sales</td> <td align="right">$</td> <td align="right">659,455</td> <td style="text-indent: 5.16pt;" align="left">$</td> <td align="right">676,660</td> <td align="right">$</td> <td align="right">678,612</td> <td align="right">$</td> <td align="right">737,777</td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">Gross profit on sales</td> <td align="right"> </td> <td align="right">178,504</td> <td align="left"> </td> <td align="right">182,657</td> <td align="left"> </td> <td align="right">183,146</td> <td align="right"> </td> <td align="right">191,548</td></tr> <tr valign="bottom"><td align="left">Net income</td> <td align="right"> </td> <td align="right">18,601</td> <td align="left"> </td> <td align="right">20,701</td> <td align="left"> </td> <td align="right">16,982</td> <td align="right"> </td> <td align="right">19,300</td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">Basic and diluted earnings per share</td> <td align="right"> </td> <td align="right">.69</td> <td align="left"> </td> <td align="right">.77</td> <td align="left"> </td> <td align="right">.63</td> <td align="right"> </td> <td align="right">.72</td></tr></table></div></div> </div>

<div> <div class="MetaData"> Rent expense and income on all leases consisted of: <div> <table border="0" cellspacing="0"> <tr><td width="34%"> </td> <td width="20%"> </td> <td width="8%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">(dollars in thousands)</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2012</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Minimum annual rentals</td> <td align="left">$</td> <td align="right">30,141</td> <td align="left"> </td> <td align="right">$</td> <td align="right">30,970</td> <td align="left"> </td> <td align="right">$</td> <td align="right">33,285</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" align="left">Contingent rentals</td> <td align="left"> </td> <td align="right">134</td> <td align="left"> </td> <td align="right"> </td> <td align="right">512</td> <td align="left"> </td> <td align="right"> </td> <td align="right">598</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 0pt;" align="left">Lease or sublease income</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(6,352</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(6,704</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(6,514</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left">$</td> <td style="border-bottom: #000000 1px solid;" align="right">23,923</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">24,778</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">27,369</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr></table></div></div> </div>

<div> <div class="MetaData">   The following table summarizes the activity related to the Company's unrecognized tax benefits: <div> <table border="0" cellspacing="0"> <tr><td width="59%">  </td> <td width="13%">  </td> <td width="13%">  </td> <td width="10%">  </td> <td width="4%">  </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 2px solid;" width="59%" align="left">(dollars in thousands) </td> <td style="border-bottom: #000000 2px solid;" width="13%" align="left">  </td> <td style="border-bottom: #000000 2px solid;" width="13%" align="right">2012 </td> <td style="border-bottom: #000000 2px solid;" width="10%" align="right">2011 </td> <td width="4%" align="left">  </td></tr> <tr valign="bottom"><td width="59%" align="left">Unrecognized tax benefits at beginning of year </td> <td width="13%" align="left">$ </td> <td width="13%" align="right">161 </td> <td width="10%" align="right">925 </td> <td width="4%" align="left">  </td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" width="59%" align="left">Increases based on tax positions related to the current year </td> <td width="13%" align="left">  </td> <td width="13%" align="right">--- </td> <td width="10%" align="right">--- </td> <td width="4%" align="left">  </td></tr> <tr valign="bottom"><td width="59%" align="left">Additions for tax positions of prior year </td> <td width="13%" align="left">  </td> <td width="13%" align="right">64 </td> <td width="10%" align="right">--- </td> <td width="4%" align="left">  </td></tr> <tr valign="bottom"><td width="59%" align="left">Reductions for tax positions of prior years </td> <td width="13%" align="left">  </td> <td width="13%" align="right">--- </td> <td width="10%" align="right">--- </td> <td width="4%" align="left">  </td></tr> <tr valign="bottom"><td width="59%" align="left">Settlements </td> <td width="13%" align="left">  </td> <td width="13%" align="right">--- </td> <td width="10%" align="right">(764 </td> <td width="4%" align="left">) </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="59%" align="left">Expiration of the statute of limitations for assessment of taxes </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="left">  </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">--- </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">--- </td> <td width="4%" align="left">  </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="59%" align="left">Unrecognized tax benefits at end of year </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="left">$ </td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right">225 </td> <td style="border-bottom: #000000 1px solid;" width="10%" align="right">161 </td> <td width="4%" align="left">  </td></tr></table></div></div> </div>

<div> <div class="MetaData"> (t) Operating, General and Administrative Expenses Business operating costs including expenses generated from administration and purchasing functions, are recorded in "Operating, general and administrative expenses" in the Consolidated Statements of Income. Business operating costs include items such as wages, benefits, utilities, repairs and maintenance, advertising costs and credits, rent, insurance, equipment depreciation, leasehold amortization and costs for outside provided services.</div> </div>

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<div> <div> <div> <div> <div> <div> <div> <div> <div> <div> Note 1 Summary of Significant Accounting Policies The following is a summary of the significant accounting policies utilized in preparing the Company's consolidated financial statements:   <div class="MetaData"> (a) Description of Business Weis Markets, Inc. is a Pennsylvania business corporation formed in 1924. The Company is engaged principally in the retail sale of food in Pennsylvania and surrounding states. There was no material change in the nature of the Company's business during fiscal 2012.</div>   <div class="MetaData"> (b) Definition of Fiscal Year The Company's fiscal year ends on the last Saturday in December. Fiscal 2012 was comprised of 52 weeks, ending on December 29, 2012. Fiscal 2011 was comprised of 53 weeks, ending on December 31, 2011. Fiscal 2010 was comprised of 52 weeks, ending on December 25, 2010. References to years in this annual report relate to fiscal years.</div>   <div class="MetaData"> (c) Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.</div>   <div class="MetaData"> (d) Use of Estimates Management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements in conformity with accounting principles generally accepted in the United States of America. Actual results could differ from those estimates.</div>   <div class="MetaData"> (e) Reclassifications The Company reclassified certain immaterial amounts in the Consolidated Balance Sheets.  </div> <div class="MetaData"> <div> (f) Cash and Cash Equivalents   The Company maintains its cash balances in the form of core checking accounts and money market accounts. The Company maintains cash deposits with banks that at times exceed applicable insurance limits. The Company reduces its exposure to credit risk by maintaining such deposits with high quality financial institutions that management believes are creditworthy.</div>   The Company considers investments with an original maturity of three months or less to be cash equivalents. Investment amounts classified as cash equivalents as of December 29, 2012 and December 31, 2011 totaled $8.1 million and $17.8 million, respectively. </div> <div>  </div> <div> (g) Marketable Securities Marketable securities consist of municipal bonds and equity securities. The Company invests primarily in high-grade marketable securities. The Company classifies all of its marketable securities as available-for-sale.   Available-for-sale securities are recorded at fair value as determined by quoted market price based on national markets. Unrealized holding gains and losses, net of the related tax effect, are excluded from earnings and are reported as a separate component of shareholders' equity until realized. A decline in the fair value below cost that is deemed other than temporary results in a charge to earnings and the establishment of a new cost basis for the security. Dividend and interest income is recognized when earned. Realized gains and losses are included in earnings and are derived using the specific identification method for determining the cost of securities.</div> <div class="MetaData"> <div> (h) Accounts Receivable Accounts receivable are stated net of an allowance for uncollectible accounts of $1,526,000 and $1,415,000 as of December 29, 2012 and December 31, 2011, respectively. The reserve balance relates to amounts due from pharmacy third party providers, retail customer returned checks, manufacturing customers and vendors. The Company maintains an allowance for the amount of receivables deemed to be uncollectible and calculates this amount based upon historical collection activity adjusted for current conditions. Customer electronic payments accepted at the point of sale are classified as accounts receivable until collected.</div></div> <div> (i) Inventories Inventories are valued at the lower of cost or market, using both the last-in, first-out (LIFO) and average cost methods. The Company evaluates inventory shortages throughout the year based on actual physical counts in its facilities. Allowances for inventory shortages are recorded based on the results of these counts and to provide for estimated shortages from the last physical count to the financial statement date.</div>   <div class="MetaData"> <div class="MetaData"> (j) Property and Equipment In the first quarter of 2012, the Company changed its accounting policy for property and equipment. Property and equipment continue to be recorded at cost. Prior to January 1, 2012, the Company provided for depreciation of buildings and improvements and equipment using accelerated methods. Effective January 1, 2012, the Company changed its method of depreciation for this group of assets from the accelerated methods to straight-line. Management deemed the change preferable because the straight-line method will more accurately reflect the pattern of usage and the expected benefits of such assets. Management also considered that the change will provide greater consistency with the depreciation methods used by other companies in the Company's industry. The change was accounted for as a change in accounting estimate effected by a change in accounting principle. The net book value of assets acquired prior to January 1, 2012 with useful lives remaining will be depreciated using the straight-line method prospectively. If the Company had continued using accelerated methods, depreciation expense would have been $11.5 million greater in 2012. Had accelerated methods continued to be used, after considering the impact of income taxes, the effect would decrease net income by $6.8 million or $.25 per share in 2012.   Leasehold improvements are unaffected by the change noted above. Leasehold improvements continue to be amortized using the straight line method over the terms of the leases or the useful lives of the assets, whichever is shorter.   <div> Maintenance and repairs are expensed and renewals and betterments are capitalized. When assets are retired or otherwise disposed of, the assets and accumulated depreciation are removed from the respective accounts and any profit or loss on the disposition is credited or charged to "Operating, general and administrative expenses."</div></div></div> <div class="MetaData">  </div> <div class="MetaData"> (k) Goodwill and Intangible Assets Intangible assets with an indefinite useful life are not amortized until their useful life is determined to be no longer indefinite and are tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. Goodwill is not amortized but tested for impairment for each reporting unit, on an annual basis and between annual tests in certain circumstances.   To derive the fair value of the Company's sole reporting unit, the Company uses an income approach along with an analysis of its stock value. Under the income approach, fair value of a reporting unit is determined based on estimated future cash flows discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of the Company. Estimated future cash flows are based on the Company's internal projection model. The stock value evaluation consists of measuring the average market capitalization of the Company against its total asset value of its sole reporting unit. The Company completes its impairment test in the third quarter of each fiscal year.   The results of the impairment test are subject to management's estimates and assumptions of projected cash flows and operating results. The Company believes that, based on current conditions, materially different reported results are not likely to result from long-lived asset impairments. However, a change in assumptions or market conditions could result in a change in estimated future cash flows and the likelihood of materially different reported results.   <div class="MetaData"> The Company's intangible assets and related accumulated amortization at December 29, 2012 and December 31, 2011 consisted of the following:   <div> <div> <table border="0" cellspacing="0"> <tr><td width="30%"> </td> <td width="2%"> </td> <td width="8%" align="center"> </td> <td width="2%" align="center"> </td> <td width="7%" align="center"> </td> <td width="2%" align="center"> </td> <td width="7%" align="center"> </td> <td width="2%" align="center"> </td> <td width="7%" align="center"> </td> <td width="2%" align="center"> </td> <td width="6%" align="center"> </td> <td width="2%" align="center"> </td> <td width="6%" align="center"> </td></tr> <tr valign="bottom"><td width="30%" align="left"> </td> <td width="2%" align="left"> </td> <td width="8%" align="center"> </td> <td width="2%" align="center"> </td> <td width="7%" align="center">December 29, 2012</td> <td width="2%" align="center"> </td> <td width="7%" align="center"> </td> <td width="2%" align="center"> </td> <td width="7%" align="center"> </td> <td width="2%" align="center"> </td> <td width="6%" align="center">December 31, 2011</td> <td width="2%" align="center"> </td> <td width="6%" align="center"> </td></tr> <tr valign="bottom"><td width="30%" align="left"> </td> <td width="2%" align="left"> </td> <td width="8%" align="center"> </td> <td width="2%" align="center"> </td> <td width="7%" align="center">Accumulated</td> <td width="2%" align="center"> </td> <td width="7%" align="center"> </td> <td width="2%" align="center"> </td> <td width="7%" align="center"> </td> <td width="2%" align="center"> </td> <td width="6%" align="center">Accumulated</td> <td width="2%" align="center"> </td> <td width="6%" align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="30%" align="left">(dollars in thousands)</td> <td width="2%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="8%" align="center">Gross</td> <td width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="center">Amortization</td> <td width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="center">Net</td> <td width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="center">Gross</td> <td width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="6%" align="center">Amortization</td> <td width="2%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="6%" align="center">Net</td></tr> <tr valign="bottom"><td style="text-indent: 0.001pt;" width="30%" align="left">Non-Compete Agreements</td> <td width="2%" align="right">$</td> <td width="8%" align="right">1,200</td> <td width="2%" align="right">$</td> <td width="7%" align="right">1,120</td> <td width="2%" align="right">$</td> <td width="7%" align="right">80</td> <td width="2%" align="right">$</td> <td width="7%" align="right">1,200</td> <td width="2%" align="right">$</td> <td width="6%" align="right">1,040</td> <td style="text-indent: 15.967pt;" width="2%" align="left">$</td> <td width="6%" align="right">160</td></tr> <tr valign="bottom"><td width="30%" align="left">Lease Acquisitions</td> <td width="2%" align="right"> </td> <td width="8%" align="right">5,330</td> <td width="2%" align="right"> </td> <td width="7%" align="right">2,961</td> <td width="2%" align="right"> </td> <td width="7%" align="right">2,369</td> <td width="2%" align="right"> </td> <td width="7%" align="right">5,409</td> <td width="2%" align="right"> </td> <td width="6%" align="right">2,795</td> <td width="2%" align="left"> </td> <td width="6%" align="right">2,614</td></tr> <tr valign="bottom"><td style="text-indent: 0pt;" width="30%" align="left">Liquor Licenses</td> <td width="2%" align="right"> </td> <td width="8%" align="right">942</td> <td width="2%" align="right"> </td> <td width="7%" align="right">22</td> <td width="2%" align="right"> </td> <td width="7%" align="right">920</td> <td width="2%" align="right"> </td> <td width="7%" align="center">---</td> <td width="2%" align="right"> </td> <td width="6%" align="center">---</td> <td width="2%" align="left"> </td> <td width="6%" align="right">--- </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 3px double; text-indent: 0.001pt;" width="30%" align="left">Customer Lists</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right"> </td> <td style="border-bottom: #000000 3px double;" width="8%" align="right">120</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right"> </td> <td style="border-bottom: #000000 3px double;" width="7%" align="right">2</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right"> </td> <td style="border-bottom: #000000 3px double;" width="7%" align="right">118</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right"> </td> <td style="border-bottom: #000000 3px double;" width="7%" align="center">---</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right"> </td> <td style="border-bottom: #000000 3px double;" width="6%" align="center">---</td> <td style="border-bottom: #000000 3px double; text-indent: 0pt;" width="2%" align="left"> </td> <td style="border-bottom: #000000 3px double;" width="6%" align="right"> ---</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid; text-indent: 0.001pt;" width="30%" align="left">Total</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right">7,592</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">4,105</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">3,487</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">6,609</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="6%" align="right">3,835</td> <td style="border-bottom: #000000 1px solid; text-indent: 15.967pt;" width="2%" align="left">$</td> <td style="border-bottom: #000000 1px solid;" width="6%" align="right">2,774</td></tr></table></div></div></div>   Intangible assets with a definite useful life are generally amortized on a straight-line basis over periods ranging from 15 to 30 years. Estimated amortization expense for the next five fiscal years is approximately $350,000 in 2013, $269,000 in 2014, $269,000 in 2015, $269,000 in 2016 and $269,000 in 2017. As of December 29, 2012, the Company has no intangible assets, other than goodwill, with indefinite lives.</div>   <div class="MetaData"> (l) Impairment of Long-Lived Assets The Company periodically evaluates the period of depreciation or amortization for long-lived assets to determine whether current circumstances warrant revised estimates of useful lives. The Company reviews its property and equipment for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. Recoverability is measured by a comparison of the carrying amount to the net undiscounted cash flows expected to be generated by the asset. An impairment loss would be recorded for the excess of net book value over the fair value of the asset impaired. The fair value is estimated based on expected discounted future cash flows.   With respect to owned property and equipment associated with closed stores, the value of the property and equipment is adjusted to reflect recoverable values based on the Company's prior history of disposing of similar assets and current economic conditions.   The results of impairment tests are subject to management's estimates and assumptions of projected cash flows and operating results. The Company believes that, based on current conditions, materially different reported results are not likely to result from long-lived asset impairments. However, a change in assumptions or market conditions could result in a change in estimated future cash flows and the likelihood of materially different reported results.</div> <div class="MetaData"> <div> (m) Store Closing Costs The Company provides for closed store liabilities relating to the estimated post-closing lease liabilities and related other exit costs associated with the store closing commitments. The closed store liabilities are usually paid over the lease terms associated with the closed stores having remaining terms ranging from two to six years. Closed store lease liabilities totaled $635,000 and $756,000 as of December 29, 2012 and December 31, 2011, respectively. The Company estimates the lease liabilities, net of estimated sublease income, using the undiscounted rent payments of closed stores.</div></div> <div class="MetaData"> (n) Self-Insurance The Company is self-insured for a majority of its workers' compensation, general liability, vehicle accident and associate medical benefit claims. Self-insurance costs are accrued based upon the aggregate of the liability for reported claims and an estimated liability for claims incurred but not reported. The Company was liable for associate health claims up to an annual maximum of $750,000 per member prior to March 1, 2012, $1,250,000 per member prior to March 1, 2013 and is liable for associate health claims up to an annual maximum of $2,000,000 per member as of March 1, 2013. The Company is liable for workers' compensation claims up to $2,000,000 per claim. Property and casualty insurance coverage is maintained with outside carriers at deductible or retention levels ranging from $100,000 to $1,000,000.</div>   <div class="MetaData"> (o) Income Taxes The Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  </div> <div class="MetaData"> <div class="MetaData"> (p) Earnings Per Share Earnings per share are based on the weighted-average number of common shares outstanding. Diluted earnings per share are based on the weighted-average number of common shares outstanding, plus the incremental shares that would have been outstanding upon the assumed exercise of all dilutive stock options, subject to antidilution limitations. The last stock options granted under the Stock Option Plan in 2002 expired in 2010. Basic and diluted earnings per share are the same amounts for each period presented. </div></div> <div class="MetaData"> </div> <div class="MetaData">(q) Revenue Recognition</div> Revenue from the sale of products to the Company's customers is recognized at the point of sale. Discounts provided to customers at the point of sale through the Weis Club Preferred Shopper loyalty program are recognized as a reduction in sales as products are sold. Periodically, the Company will run a point based sales incentive program that rewards customers with future sales discounts. The Company makes reasonable and reliable estimates of the amount of future discounts based upon historical experience and its customer data tracking software. Sales are reduced by these estimates over the life of the program. Discounts to customers at the point of sale provided by vendors, usually in the form of paper coupons, are not recognized as a reduction in sales provided the discounts are redeemable at any retailer that accepts those discounts. The Company records "Deferred revenue" for the sale of gift cards and revenue is recognized in "Net sales" at the time of customer redemption for products. Gift card breakage income is recognized in "Operating, general and administrative expenses" based upon historical redemption patterns and represents the balance of gift cards for which the Company believes the likelihood of redemption by the customer is remote. Merchandise return activity is immaterial to revenues. <div class="MetaData"> (r) Cost of Sales, Including Warehousing and Distribution Expenses "Cost of sales, including warehousing and distribution expenses" consists of direct product (net of discounts and allowances), warehouse and transportation costs, as well as manufacturing facility operations.</div> <div class="MetaData"> (s) Vendor Allowances Vendor allowances that relate to the Company's buying and merchandising activities are recorded as a reduction of cost of sales as they are earned, in accordance with the underlying agreement. Off-invoice and bill-back allowances are used to reduce direct product costs upon the receipt of goods. Promotional rebates and credits are accounted for as a reduction in the cost of inventory and recognized when the related inventory is sold. Volume incentive discounts are realized as a reduction of cost of sales at the time it is deemed probable and reasonably estimable that the incentive target will be reached. Long-term contract incentives, which require an exclusive vendor relationship, are allocated over the life of the contract. Promotional allowance funds for specific vendor-sponsored programs are recognized as a reduction of cost of sales as the program occurs and the funds are earned per the agreement. Cash discounts for prompt payment of invoices are realized in cost of sales as invoices are paid. Warehouse and back-haul allowances provided by suppliers for distributing their product through our distribution system are recorded in cost of sales as the required performance is completed. Warehouse rack and slotting allowances are recorded in cost of sales when new items are initially set up in the Company's distribution system, which is when the related expenses are incurred and performance under the agreement is complete. Swell allowances for damaged goods are realized in cost of sales as provided by the supplier, helping to offset product shrink losses also recorded in cost of sales.   Vendor allowances recorded as credits in cost of sales totaled $75.1 million in 2012, $66.5 million in 2011 and $60.3 million in 2010. Vendor paid cooperative advertising credits totaled $16.4 million in 2012, $18.2 million in 2011 and $18.8 million in 2010. These credits were netted against advertising costs within "Operating, general and administrative expenses." The Company had accounts receivable due from vendors of $609,000 and $95,000 for earned advertising credits and $4.6 million and $4.5 million for earned promotional discounts as of December 29, 2012 and December 31, 2011, respectively. The Company had $861,000 and $1.1 million in unearned income included in accrued liabilities for unearned vendor programs under long-term contracts for display and shelf space allocation as of December 29, 2012 and December 31, 2011, respectively.</div>   <div class="MetaData"> (t) Operating, General and Administrative Expenses Business operating costs including expenses generated from administration and purchasing functions, are recorded in "Operating, general and administrative expenses" in the Consolidated Statements of Income. Business operating costs include items such as wages, benefits, utilities, repairs and maintenance, advertising costs and credits, rent, insurance, equipment depreciation, leasehold amortization and costs for outside provided services.</div> <div class="MetaData"> <div> (u) Advertising Costs The Company expenses advertising costs as incurred. The Company recorded advertising expense, before vendor paid cooperative advertising credits, of $23.5 million in 2012, $24.7 million in 2011 and $25.1 million in 2010 in "Operating, general and administrative expenses."</div></div> <div> (v) Rental Income The Company leases or subleases space to tenants in owned, vacated and open store facilities. Rental income is recorded when earned as a component of "Operating, general and administrative expenses." All leases are operating leases, as disclosed in Note 5, and do not contain upfront considerations.</div>  (w) Current Relevant Accounting Standards In May 2011, the Financial Accounting Standards Board (FASB) issued new authoritative guidance to achieve a consistent definition of fair value and ensure that the fair value measurement and disclosure requirements are similar between U.S. GAAP and International Financial Reporting Standards. This new guidance amends current fair value measurement and disclosure guidance to include increased transparency around valuation inputs and investment categorization. This new guidance is effective for fiscal years and interim periods beginning after December 15, 2011. Adoption of the new guidance did not have an impact on the Company's consolidated financial statements.   In September 2011, FASB issued additional authoritative guidance on testing goodwill for impairment. The guidance permits an entity to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. This new guidance is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Adoption of the new guidance did not have an impact on the Company's consolidated financial statements.   In December 2011, the FASB and International Accounting Standards Board jointly issued additional authoritative guidance to enhance disclosure requirements, including both gross and net information, for instruments and transactions eligible for offset in the statement of financial position as well as instruments and transactions subject to an agreement similar to a master netting arrangement. The guidance is effective for annual reporting periods beginning on or after January 1, 2013 and is to be applied retrospectively. In January 2013, FASB amended the additional authoritative guidance to clarify the scope. The amendments clarify that the guidance only applies to derivatives including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset or subject to an enforceable master netting arrangement or similar agreement. The Company is no longer subject to the disclosure requirements.   In February 2013, FASB issued additional authoritative guidance on comprehensive income and the reporting of amounts reclassified out of accumulated other comprehensive income. This guidance requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. This new guidance is effective prospectively for reporting periods beginning after December 15, 2012. The adoption of this new guidance will require additional disclosures and presentation of items impacting other comprehensive income but will not have an impact on the Company's consolidated financial statements.  </div>   <div>  </div></div></div></div></div></div></div></div></div> </div>

690764000

4628000

9949000

827042000

-150855000

728127000

4903000

9949000

864132000

-150857000

745886000

5448000

9949000

881346000

-150857000

795690000

5019000

9949000

931579000

-150857000

<div> <div class="MetaData"> <div> (h) Accounts Receivable Accounts receivable are stated net of an allowance for uncollectible accounts of $1,526,000 and $1,415,000 as of December 29, 2012 and December 31, 2011, respectively. The reserve balance relates to amounts due from pharmacy third party providers, retail customer returned checks, manufacturing customers and vendors. The Company maintains an allowance for the amount of receivables deemed to be uncollectible and calculates this amount based upon historical collection activity adjusted for current conditions. Customer electronic payments accepted at the point of sale are classified as accounts receivable until collected.</div></div> </div>

6149364

150857000

2000

925000

161000

225000

764000

64000

<div> <div class="MetaData"> (d) Use of Estimates Management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements in conformity with accounting principles generally accepted in the United States of America. Actual results could differ from those estimates.</div> </div>

52312000

57396000

26898443

95000 609000 4500000 4600000 18103000 18544000 756000 635000 60300000 66500000 75100000 1906753000 2016649000 1958852000 <div> <div class="MetaData"> (a) Description of Business Weis Markets, Inc. is a Pennsylvania business corporation formed in 1924. The Company is engaged principally in the retail sale of food in Pennsylvania and surrounding states. There was no material change in the nature of the Company's business during fiscal 2012.</div> </div> -1272000 -1664000 -2569000 226191000 77129000 245243000 78330000 3 14434000 15206000 1000000 100000 6999000 7531000 22100000 2000000 1250000 750000 2000000 <div class="MetaData"> (n) Self-Insurance The Company is self-insured for a majority of its workers' compensation, general liability, vehicle accident and associate medical benefit claims. Self-insurance costs are accrued based upon the aggregate of the liability for reported claims and an estimated liability for claims incurred but not reported. The Company was liable for associate health claims up to an annual maximum of $750,000 per member prior to March 1, 2012, $1,250,000 per member prior to March 1, 2013 and is liable for associate health claims up to an annual maximum of $2,000,000 per member as of March 1, 2013. The Company is liable for workers' compensation claims up to $2,000,000 per claim. Property and casualty insurance coverage is maintained with outside carriers at deductible or retention levels ranging from $100,000 to $1,000,000.</div> 896743000 946547000 1100000 861000 18800000 18200000 16400000