Document and Entity Information
Document and Entity Information - shares | 8 Months Ended | |
Sep. 06, 2015 | Oct. 01, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 6, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | DPZ | |
Entity Registrant Name | DOMINOS PIZZA INC | |
Entity Central Index Key | 1,286,681 | |
Current Fiscal Year End Date | --01-03 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 54,647,243 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 06, 2015 | Dec. 28, 2014 | ||
Current assets: | ||||
Cash and cash equivalents | $ 32,506 | $ 30,855 | [1] | |
Restricted cash and cash equivalents | 91,021 | 120,954 | [1] | |
Accounts receivable | 112,398 | 118,395 | [1] | |
Inventories | 39,826 | 37,944 | [1] | |
Prepaid expenses and other | 23,701 | 32,569 | [1] | |
Advertising fund assets, restricted | 96,030 | 72,055 | [1] | |
Deferred income taxes | 8,950 | 9,857 | [1] | |
Asset held for sale | [1] | 5,732 | ||
Total current assets | 404,432 | 428,361 | [1] | |
Property, plant and equipment: | ||||
Land and buildings | 29,345 | 25,859 | [1] | |
Leasehold and other improvements | 104,735 | 99,804 | [1] | |
Equipment | 187,305 | 178,378 | [1] | |
Construction in progress | 4,440 | 6,179 | [1] | |
Property, plant and equipment, Gross, Total | 325,825 | 310,220 | [1] | |
Accumulated depreciation and amortization | (206,373) | (196,174) | [1] | |
Property, plant and equipment, net | 119,452 | 114,046 | [1] | |
Other assets: | ||||
Deferred financing costs | 19,123 | 22,947 | [1] | |
Goodwill | 16,176 | 16,297 | [1] | |
Capitalized software | 24,136 | 20,562 | [1] | |
Other assets | 17,859 | 14,592 | [1] | |
Deferred income taxes | 2,018 | 2,475 | [1] | |
Total other assets | 79,312 | 76,873 | [1] | |
Total assets | 603,196 | 619,280 | [1] | |
Current liabilities: | ||||
Current portion of long-term debt | 256 | 565 | [1] | |
Accounts payable | 86,423 | 86,552 | [1] | |
Dividends payable | 17,316 | 14,351 | [1] | |
Insurance reserves | 16,555 | 14,465 | [1] | |
Advertising fund liabilities | 96,030 | 72,055 | [1] | |
Other accrued liabilities | 62,711 | 77,620 | [1] | |
Total current liabilities | 279,291 | 265,608 | [1] | |
Long-term liabilities: | ||||
Long-term debt, less current portion | 1,527,664 | 1,523,546 | [1] | |
Insurance reserves | 29,357 | 26,951 | [1] | |
Deferred income taxes | 4,523 | 5,588 | [1] | |
Other accrued liabilities | 18,310 | 17,052 | [1] | |
Total long-term liabilities | 1,579,854 | 1,573,137 | [1] | |
Stockholders' deficit: | ||||
Common stock | 546 | 556 | [1] | |
Additional paid-in capital | 1,273 | 29,561 | [1] | |
Retained deficit | (1,254,287) | (1,246,921) | [1] | |
Accumulated other comprehensive loss | (3,481) | (2,661) | [1] | |
Total stockholders' deficit | (1,255,949) | (1,219,465) | [1] | |
Total liabilities and stockholders' deficit | $ 603,196 | $ 619,280 | [1] | |
[1] | The balance sheet at December 28, 2014 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 06, 2015 | Sep. 07, 2014 | Sep. 06, 2015 | Sep. 07, 2014 | |
Revenues: | ||||
Revenue | $ 484,696 | $ 446,568 | $ 1,475,345 | $ 1,350,883 |
Cost of sales: | ||||
Cost of sales | 342,742 | 313,054 | 1,023,653 | 945,682 |
Operating margin | 141,954 | 133,514 | 451,692 | 405,201 |
General and administrative | 61,411 | 56,573 | 184,665 | 162,722 |
Income from operations | 80,543 | 76,941 | 267,027 | 242,479 |
Interest income | 64 | 22 | 203 | 80 |
Interest expense | (19,979) | (19,974) | (59,142) | (60,151) |
Income before provision for income taxes | 60,628 | 56,989 | 208,088 | 182,408 |
Provision for income taxes | 22,796 | 21,371 | 78,058 | 67,854 |
Net income | $ 37,832 | $ 35,618 | $ 130,030 | $ 114,554 |
Earnings per share: | ||||
Common stock - basic | $ 0.69 | $ 0.65 | $ 2.37 | $ 2.08 |
Common stock - diluted | 0.67 | 0.63 | 2.30 | 2.01 |
Dividends declared per share | $ 0.31 | $ 0.25 | $ 0.93 | $ 0.75 |
Domestic Stores [Member] | Domestic Company Owned Stores [Member] | ||||
Revenues: | ||||
Revenue | $ 86,456 | $ 77,644 | $ 267,625 | $ 238,915 |
Cost of sales: | ||||
Cost of sales | 70,032 | 59,754 | 204,266 | 183,262 |
Domestic Stores [Member] | Domestic Franchise [Member] | ||||
Revenues: | ||||
Revenue | 59,385 | 51,858 | 181,986 | 157,317 |
Supply Chain [Member] | ||||
Revenues: | ||||
Revenue | 303,591 | 282,506 | 918,150 | 851,768 |
Cost of sales: | ||||
Cost of sales | 272,710 | 253,300 | 819,387 | 762,420 |
International Franchise [Member] | ||||
Revenues: | ||||
Revenue | $ 35,264 | $ 34,560 | $ 107,584 | $ 102,883 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 06, 2015 | Sep. 07, 2014 | Sep. 06, 2015 | Sep. 07, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 37,832 | $ 35,618 | $ 130,030 | $ 114,554 |
Other comprehensive income (loss), before tax: | ||||
Currency translation adjustment | (961) | (5) | (1,694) | (790) |
Tax attributes of items in other comprehensive income (loss): | ||||
Currency translation adjustment | 409 | 29 | 874 | 440 |
Other comprehensive income (loss), net of tax | (552) | 24 | (820) | (350) |
Comprehensive income | $ 37,280 | $ 35,642 | $ 129,210 | $ 114,204 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 8 Months Ended | ||
Sep. 06, 2015 | Sep. 07, 2014 | ||
Cash flows from operating activities: | |||
Net income | $ 130,030 | $ 114,554 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 22,695 | 20,024 | |
Gains on sale/disposal of assets | (73) | (1,381) | |
Amortization of deferred financing costs | 3,825 | 4,046 | |
Provision for deferred income taxes | 959 | 1,008 | |
Non-cash compensation expense | 11,188 | 11,897 | |
Tax impact from equity-based compensation | (15,745) | (10,899) | |
Other | (1,216) | (888) | |
Changes in operating assets and liabilities | 15,645 | (19,476) | |
Net cash provided by operating activities | 167,308 | 118,885 | |
Cash flows from investing activities: | |||
Capital expenditures | (33,834) | (30,983) | |
Proceeds from sale of assets | 10,464 | 5,802 | |
Changes in restricted cash | 29,933 | 51,861 | |
Other | 1,304 | (1,365) | |
Net cash provided by investing activities | 7,867 | 25,315 | |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 5,000 | ||
Repayments of long-term debt and capital lease obligations | (5,198) | (12,152) | |
Proceeds from exercise of stock options | 4,459 | 3,094 | |
Tax impact from equity-based compensation | 15,745 | 10,899 | |
Purchases of common stock | (138,550) | (82,407) | |
Tax payments for restricted stock upon vesting | (7,442) | (7,889) | |
Payments of common stock dividends and equivalents | (48,141) | (39,208) | |
Net cash used in financing activities | (174,127) | (127,663) | |
Effect of exchange rate changes on cash and cash equivalents | 603 | 16 | |
Change in cash and cash equivalents | 1,651 | 16,553 | |
Cash and cash equivalents, at beginning of period | 30,855 | [1] | 14,383 |
Cash and cash equivalents, at end of period | $ 32,506 | $ 30,936 | |
[1] | The balance sheet at December 28, 2014 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Basis of Presentation
Basis of Presentation | 8 Months Ended |
Sep. 06, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. For further information, refer to the consolidated financial statements and footnotes for the fiscal year ended December 28, 2014 included in our annual report on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring items, considered necessary for a fair statement have been included. Operating results for the fiscal quarter ended September 6, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending January 3, 2016. |
Segment Information
Segment Information | 8 Months Ended |
Sep. 06, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | 2. Segment Information The following table summarizes revenues, income from operations and earnings before interest, taxes, depreciation, amortization and other, which is the measure by which the Company allocates resources to its segments and which we refer to as Segment Income, for each of our reportable segments. Fiscal Quarters Ended September 6, 2015 and September 7, 2014 Domestic Supply International Intersegment Other Total Revenues 2015 $ 145,841 $ 327,885 $ 35,264 $ (24,294 ) $ — $ 484,696 2014 129,502 306,131 34,560 (23,625 ) — 446,568 Income from operations 2015 $ 45,482 $ 23,729 $ 27,922 N/A $ (16,590 ) $ 80,543 2014 43,000 22,952 28,288 N/A (17,299 ) 76,941 Segment Income 2015 $ 47,566 $ 26,061 $ 27,954 N/A $ (9,760 ) $ 91,821 2014 44,761 25,033 28,327 N/A (10,110 ) 88,011 Three Fiscal Quarters Ended September 6, 2015 and September 7, 2014 Domestic Supply International Intersegment Other Total Revenues 2015 $ 449,611 $ 993,015 $ 107,584 $ (74,865 ) $ — $ 1,475,345 2014 396,232 923,900 102,883 (72,132 ) — 1,350,883 Income from operations 2015 $ 153,732 $ 76,937 $ 86,205 N/A $ (49,847 ) $ 267,027 2014 135,105 70,044 84,682 N/A (47,352 ) 242,479 Segment Income 2015 $ 159,118 $ 83,832 $ 86,211 N/A $ (28,324 ) $ 300,837 2014 138,413 76,184 84,500 N/A (26,078 ) 273,019 The following table reconciles Total Segment Income to consolidated income before provision for income taxes. Fiscal Quarter Ended Three Fiscal Quarters Ended September 6, September 7, September 6, September 7, Total Segment Income $ 91,821 $ 88,011 $ 300,837 $ 273,019 Depreciation and amortization (7,667 ) (6,947 ) (22,695 ) (20,024 ) Gains (losses) on sale/disposal of assets (199 ) (306 ) 73 1,381 Non-cash compensation expense (3,412 ) (3,817 ) (11,188 ) (11,897 ) Income from operations 80,543 76,941 267,027 242,479 Interest income 64 22 203 80 Interest expense (19,979 ) (19,974 ) (59,142 ) (60,151 ) Income before provision for income taxes $ 60,628 $ 56,989 $ 208,088 $ 182,408 |
Earnings Per Share
Earnings Per Share | 8 Months Ended |
Sep. 06, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 3. Earnings Per Share Fiscal Quarter Ended Three Fiscal Quarters Ended September 6, September 7, September 6, September 7, Net income available to common $ 37,832 $ 35,618 $ 130,030 $ 114,554 Basic weighted average number of shares 54,463,073 54,620,539 54,834,627 54,949,257 Earnings per share – basic $ 0.69 $ 0.65 $ 2.37 $ 2.08 Diluted weighted average number of shares 56,115,670 56,610,608 56,584,913 57,030,669 Earnings per share – diluted $ 0.67 $ 0.63 $ 2.30 $ 2.01 The denominators used in calculating diluted earnings per share for common stock for the third quarter and three fiscal quarters of 2015 do not include 188,080 options to purchase common stock, as the effect of including these options would have been anti-dilutive. The denominators used in calculating diluted earnings per share for common stock for the third quarter and three fiscal quarters of 2014 do not include 335,420 options to purchase common stock, as the effect of including these options would have been anti-dilutive. |
Stockholders' Deficit
Stockholders' Deficit | 8 Months Ended |
Sep. 06, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stockholders' Deficit | 4. Stockholders’ Deficit The following table summarizes changes in Stockholders’ Deficit for the three fiscal quarters of 2015. Common Stock Additional Retained Accumulated Shares Amount Balance at December 28, 2014 55,553,149 $ 556 $ 29,561 $ (1,246,921 ) $ (2,661 ) Net income — — — 130,030 — Common stock dividends — — — (51,095 ) — Issuance of common stock, net 79,375 1 — — — Tax payments for restricted stock upon vesting (69,334 ) (1 ) (7,441 ) — — Purchases of common stock (1,293,924 ) (13 ) (52,236 ) (86,301 ) — Exercise of stock options 377,677 3 4,456 — — Tax impact from equity-based compensation — — 15,745 — — Non-cash compensation expense — — 11,188 — — Currency translation adjustment, net of tax — — — — (820 ) Balance at September 6, 2015 54,646,943 $ 546 $ 1,273 $ (1,254,287 ) $ (3,481 ) |
Dividends
Dividends | 8 Months Ended |
Sep. 06, 2015 | |
Dividends [Abstract] | |
Dividends | 5. Dividends During the three fiscal quarters of 2015, the Company paid approximately $48.1 million of common stock dividends. Additionally, during the third quarter of 2015, the Company’s Board of Directors declared a $0.31 per share quarterly dividend on its outstanding common stock for shareholders of record as of September 15, 2015 which was paid on September 30, 2015. The Company had approximately $17.3 million accrued for common stock dividends at September 6, 2015. Subsequent to the third quarter, the Company’s Board of Directors declared a $0.31 per share quarterly dividend on its outstanding common stock for shareholders of record as of December 15, 2015 to be paid on December 30, 2015. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 8 Months Ended |
Sep. 06, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 6. Accumulated Other Comprehensive Loss The approximately $3.5 million of accumulated other comprehensive loss at September 6, 2015 and the approximately $2.7 million of accumulated other comprehensive loss at December 28, 2014 represent currency translation adjustments, net of tax. There were no reclassifications out of accumulated other comprehensive loss to net income in the three fiscal quarters of 2015 or the three fiscal quarters of 2014. |
Open Market Share Repurchase Pr
Open Market Share Repurchase Program | 8 Months Ended |
Sep. 06, 2015 | |
Equity [Abstract] | |
Open Market Share Repurchase Program | 7. Open Market Share Repurchase Program During the third quarter of 2015, the Company repurchased and retired 365,460 shares of common stock for approximately $40.9 million; during the three fiscal quarters of 2015, the Company repurchased and retired 1,293,924 shares of common stock for approximately $138.6 million. As of September 6, 2015, the Company had $159.4 million remaining for future share repurchases under its Board of Directors approved open market share repurchase program, which was reset at $200.0 million during the third quarter of 2015. During the third quarter of 2014, the Company repurchased and retired 242,700 shares of common stock for approximately $17.4 million; during the three fiscal quarters of 2014, the Company repurchased and retired 1,151,931 shares of common stock for approximately $82.4 million. These shares were repurchased under the Company’s open market share repurchase program. |
Fair Value Measurements
Fair Value Measurements | 8 Months Ended |
Sep. 06, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 8. Fair Value Measurements Fair value measurements enable the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. The Company classifies and discloses assets and liabilities carried at fair value in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. The fair values of the Company’s cash equivalents and investments in marketable securities are based on quoted prices in active markets for identical assets. The following tables summarize the carrying amounts and fair values of certain assets at September 6, 2015 and December 28, 2014: At September 6, 2015 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Cash equivalents $ 17,370 $ 17,370 $ — $ — Restricted cash equivalents 57,855 57,855 — — Investments in marketable securities 5,656 5,656 — — At December 28, 2014 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Cash equivalents $ 16,290 $ 16,290 $ — $ — Restricted cash equivalents 93,121 93,121 — — Investments in marketable securities 4,586 4,586 — — At September 6, 2015, the Company estimated that the $1.522 billion in principal amount of outstanding fixed rate notes had a fair value of approximately $1.572 billion; and at December 28, 2014 the $1.522 billion in principal amount of outstanding fixed rate notes had a fair value of approximately $1.597 billion. The fixed rate notes are classified as a Level 2 measurement, as the Company estimated the fair value amount by using available market information. The Company obtained quotes from two separate brokerage firms that are knowledgeable about the Company’s fixed rate notes and, at times, trade these notes. The Company also performed its own internal analysis based on the information gathered from public markets, including information on notes that are similar to that of the Company. However, considerable judgment is required to interpret market data to estimate fair value. Accordingly, the fair value estimates presented are not necessarily indicative of the amount that the Company or the debtholders could realize in a current market exchange. The use of different assumptions and/or estimation methodologies may have a material effect on the estimated fair values stated above. |
Sale of Company-Owned Stores
Sale of Company-Owned Stores | 8 Months Ended |
Sep. 06, 2015 | |
Restructuring and Related Activities [Abstract] | |
Sale of Company-Owned Stores | 9. Sale of Company-Owned Stores During the first quarter of 2014, the Company sold 14 Company-owned stores to a franchisee. In connection with the sale of these 14 stores, the Company recorded a $1.7 million pre-tax gain on the related assets, which was net of a $0.5 million reduction in goodwill. The gain was recorded in general and administrative expense in the Company’s condensed consolidated statements of income. As a result of this capital gain, the Company also released $0.3 million of a deferred tax valuation allowance. |
Legal Matters
Legal Matters | 8 Months Ended |
Sep. 06, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters | 10. Legal Matters In 2013, the Company was named as a defendant in a lawsuit along with a large franchisee and the franchisee’s delivery driver. The jury delivered a $32.0 million judgment for the plaintiff where the Company was found to be 60% liable. The Company denied liability and filed an appeal of the verdict on a variety of grounds. In the first quarter of 2015, the appellate court reversed the trial court’s decision and dismissed the claims against the Company. The plaintiff has filed a writ of review with the Texas Supreme Court. The Company’s response is due on or before October 19, 2015. The Company continues to deny liability in this matter and assert that the claims were appropriately dismissed by the Texas Court of Appeals. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 8 Months Ended |
Sep. 06, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures of Cash Flow Information | 11. Supplemental Disclosures of Cash Flow Information At September 6, 2015, the Company had $1.0 million of non-cash investing activities related to accruals for capital expenditures. During the first quarter of 2015, the Company renewed the capital lease of a supply chain center building and extended the term of the lease through August 2028. As a result of the new lease, the Company recorded non-cash financing activities of $3.4 million for the increase in capital lease assets and liabilities during the first quarter of 2015. During the third quarter of 2015, the Company entered into a capital lease for a Company-owned store. As a result, the Company recorded non-cash financing activities of $0.6 million for the increase in capital lease assets and liabilities during the third quarter of 2015. |
Debt
Debt | 8 Months Ended |
Sep. 06, 2015 | |
Debt Disclosure [Abstract] | |
Debt | 12. Debt Subsequent to the third quarter of 2015, the Company announced its intention to complete a recapitalization transaction. Certain of the Company’s subsidiaries intend to issue approximately $1.5 billion of new fixed rate notes and use the proceeds to prepay and retire 35% of the Company’s existing Series 2012-1 5.216% Fixed Rate Senior Secured Notes (the 2012 Notes) at par, for approximately $551.3 million, to pay transaction fees and for general corporate purposes. The Company also expects to enter into a new $125 million variable funding note facility, which will replace its existing $100 million variable funding note facility. The Company anticipates that the refinancing transaction will close during the fourth quarter of 2015. On the closing date of the anticipated refinancing transaction, the Company expects that its defined leverage ratios will exceed 4.5x, and as a result, the Company will be required to make up $26.9 million in principal amortization payments it had previously not made in future quarters. |
Casualty Insurance
Casualty Insurance | 8 Months Ended |
Sep. 06, 2015 | |
Insurance [Abstract] | |
Casualty Insurance | 13. Casualty Insurance The Company has retention programs for workers’ compensation, general liability and owned and non-owned automobile liabilities for its corporate stores, offices and supply chain centers. Insurance reserves relating to these retention programs are based on independent actuarial estimates. During the third quarter of 2015, the Company recorded approximately $5.7 million of pre-tax incremental insurance expense related to updated independent actuarial estimates for its casualty insurance program. This charge increased domestic Company-owned stores cost of sales in the condensed consolidated statements of income by approximately $4.3 million and increased supply chain cost of sales in the condensed consolidated statements of income by approximately $1.4 million. |
Segment Information (Tables)
Segment Information (Tables) | 8 Months Ended |
Sep. 06, 2015 | |
Segment Reporting [Abstract] | |
Revenues, Income from Operations and Earnings Before Interest, Taxes, Depreciation, Amortization and Other, for each of Reportable Segments | The following table summarizes revenues, income from operations and earnings before interest, taxes, depreciation, amortization and other, which is the measure by which the Company allocates resources to its segments and which we refer to as Segment Income, for each of our reportable segments. Fiscal Quarters Ended September 6, 2015 and September 7, 2014 Domestic Supply International Intersegment Other Total Revenues 2015 $ 145,841 $ 327,885 $ 35,264 $ (24,294 ) $ — $ 484,696 2014 129,502 306,131 34,560 (23,625 ) — 446,568 Income from operations 2015 $ 45,482 $ 23,729 $ 27,922 N/A $ (16,590 ) $ 80,543 2014 43,000 22,952 28,288 N/A (17,299 ) 76,941 Segment Income 2015 $ 47,566 $ 26,061 $ 27,954 N/A $ (9,760 ) $ 91,821 2014 44,761 25,033 28,327 N/A (10,110 ) 88,011 Three Fiscal Quarters Ended September 6, 2015 and September 7, 2014 Domestic Supply International Intersegment Other Total Revenues 2015 $ 449,611 $ 993,015 $ 107,584 $ (74,865 ) $ — $ 1,475,345 2014 396,232 923,900 102,883 (72,132 ) — 1,350,883 Income from operations 2015 $ 153,732 $ 76,937 $ 86,205 N/A $ (49,847 ) $ 267,027 2014 135,105 70,044 84,682 N/A (47,352 ) 242,479 Segment Income 2015 $ 159,118 $ 83,832 $ 86,211 N/A $ (28,324 ) $ 300,837 2014 138,413 76,184 84,500 N/A (26,078 ) 273,019 |
Reconciliation of Total Segment Income to Consolidated Income Before Provision for Income Taxes | The following table reconciles Total Segment Income to consolidated income before provision for income taxes. Fiscal Quarter Ended Three Fiscal Quarters Ended September 6, September 7, September 6, September 7, Total Segment Income $ 91,821 $ 88,011 $ 300,837 $ 273,019 Depreciation and amortization (7,667 ) (6,947 ) (22,695 ) (20,024 ) Gains (losses) on sale/disposal of assets (199 ) (306 ) 73 1,381 Non-cash compensation expense (3,412 ) (3,817 ) (11,188 ) (11,897 ) Income from operations 80,543 76,941 267,027 242,479 Interest income 64 22 203 80 Interest expense (19,979 ) (19,974 ) (59,142 ) (60,151 ) Income before provision for income taxes $ 60,628 $ 56,989 $ 208,088 $ 182,408 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 8 Months Ended |
Sep. 06, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Fiscal Quarter Ended Three Fiscal Quarters Ended September 6, September 7, September 6, September 7, Net income available to common $ 37,832 $ 35,618 $ 130,030 $ 114,554 Basic weighted average number of shares 54,463,073 54,620,539 54,834,627 54,949,257 Earnings per share – basic $ 0.69 $ 0.65 $ 2.37 $ 2.08 Diluted weighted average number of shares 56,115,670 56,610,608 56,584,913 57,030,669 Earnings per share – diluted $ 0.67 $ 0.63 $ 2.30 $ 2.01 |
Stockholders' Deficit (Tables)
Stockholders' Deficit (Tables) | 8 Months Ended |
Sep. 06, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Changes in Stockholders' Deficit | The following table summarizes changes in Stockholders’ Deficit for the three fiscal quarters of 2015. Common Stock Additional Retained Accumulated Shares Amount Balance at December 28, 2014 55,553,149 $ 556 $ 29,561 $ (1,246,921 ) $ (2,661 ) Net income — — — 130,030 — Common stock dividends — — — (51,095 ) — Issuance of common stock, net 79,375 1 — — — Tax payments for restricted stock upon vesting (69,334 ) (1 ) (7,441 ) — — Purchases of common stock (1,293,924 ) (13 ) (52,236 ) (86,301 ) — Exercise of stock options 377,677 3 4,456 — — Tax impact from equity-based compensation — — 15,745 — — Non-cash compensation expense — — 11,188 — — Currency translation adjustment, net of tax — — — — (820 ) Balance at September 6, 2015 54,646,943 $ 546 $ 1,273 $ (1,254,287 ) $ (3,481 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 8 Months Ended |
Sep. 06, 2015 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts and Fair Values of Certain Assets | The following tables summarize the carrying amounts and fair values of certain assets at September 6, 2015 and December 28, 2014: At September 6, 2015 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Cash equivalents $ 17,370 $ 17,370 $ — $ — Restricted cash equivalents 57,855 57,855 — — Investments in marketable securities 5,656 5,656 — — At December 28, 2014 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Cash equivalents $ 16,290 $ 16,290 $ — $ — Restricted cash equivalents 93,121 93,121 — — Investments in marketable securities 4,586 4,586 — — |
Revenues, Income from Operation
Revenues, Income from Operations and Earnings Before Interest, Taxes, Depreciation, Amortization and Other, for each of Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 06, 2015 | Sep. 07, 2014 | Sep. 06, 2015 | Sep. 07, 2014 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 484,696 | $ 446,568 | $ 1,475,345 | $ 1,350,883 |
Income from operations | 80,543 | 76,941 | 267,027 | 242,479 |
Segment Income | 91,821 | 88,011 | 300,837 | 273,019 |
Supply Chain [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 303,591 | 282,506 | 918,150 | 851,768 |
International Franchise [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 35,264 | 34,560 | 107,584 | 102,883 |
Operating Segments [Member] | Domestic Stores [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 145,841 | 129,502 | 449,611 | 396,232 |
Income from operations | 45,482 | 43,000 | 153,732 | 135,105 |
Segment Income | 47,566 | 44,761 | 159,118 | 138,413 |
Operating Segments [Member] | Supply Chain [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 327,885 | 306,131 | 993,015 | 923,900 |
Income from operations | 23,729 | 22,952 | 76,937 | 70,044 |
Segment Income | 26,061 | 25,033 | 83,832 | 76,184 |
Operating Segments [Member] | International Franchise [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 35,264 | 34,560 | 107,584 | 102,883 |
Income from operations | 27,922 | 28,288 | 86,205 | 84,682 |
Segment Income | 27,954 | 28,327 | 86,211 | 84,500 |
Intersegment Revenues [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (24,294) | (23,625) | (74,865) | (72,132) |
Segment Reconciling [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations | (16,590) | (17,299) | (49,847) | (47,352) |
Segment Income | $ (9,760) | $ (10,110) | $ (28,324) | $ (26,078) |
Reconciliation of Total Segment
Reconciliation of Total Segment Income to Consolidated Income Before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 06, 2015 | Sep. 07, 2014 | Sep. 06, 2015 | Sep. 07, 2014 | |
Segment Reporting [Abstract] | ||||
Total Segment Income | $ 91,821 | $ 88,011 | $ 300,837 | $ 273,019 |
Depreciation and amortization | (7,667) | (6,947) | (22,695) | (20,024) |
Gains (losses) on sale/disposal of assets | (199) | (306) | 73 | 1,381 |
Non-cash compensation expense | (3,412) | (3,817) | (11,188) | (11,897) |
Income from operations | 80,543 | 76,941 | 267,027 | 242,479 |
Interest income | 64 | 22 | 203 | 80 |
Interest expense | (19,979) | (19,974) | (59,142) | (60,151) |
Income before provision for income taxes | $ 60,628 | $ 56,989 | $ 208,088 | $ 182,408 |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 8 Months Ended | ||
Sep. 06, 2015 | Sep. 07, 2014 | Sep. 06, 2015 | Sep. 07, 2014 | |
Earnings Per Share [Abstract] | ||||
Net income available to common stockholders - basic and diluted | $ 37,832 | $ 35,618 | $ 130,030 | $ 114,554 |
Basic weighted average number of shares | 54,463,073 | 54,620,539 | 54,834,627 | 54,949,257 |
Earnings per share - basic | $ 0.69 | $ 0.65 | $ 2.37 | $ 2.08 |
Diluted weighted average number of shares | 56,115,670 | 56,610,608 | 56,584,913 | 57,030,669 |
Earnings per share - diluted | $ 0.67 | $ 0.63 | $ 2.30 | $ 2.01 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 8 Months Ended | ||
Sep. 06, 2015 | Sep. 07, 2014 | Sep. 06, 2015 | Sep. 07, 2014 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive stock options to purchase common stock not included in calculating earnings per share | 188,080 | 335,420 | 188,080 | 335,420 |
Changes in Stockholders' Defici
Changes in Stockholders' Deficit (Detail) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | |||
Sep. 06, 2015 | Sep. 07, 2014 | Sep. 06, 2015 | Sep. 07, 2014 | ||
Stockholders' Deficit [Line Items] | |||||
Beginning Balance | [1] | $ (1,219,465) | |||
Net income | $ 37,832 | $ 35,618 | 130,030 | $ 114,554 | |
Tax payments for restricted stock upon vesting | (7,442) | (7,889) | |||
Non-cash compensation expense | 3,412 | $ 3,817 | 11,188 | $ 11,897 | |
Ending Balance | $ (1,255,949) | $ (1,255,949) | |||
Common Stock [Member] | |||||
Stockholders' Deficit [Line Items] | |||||
Beginning Balance, (in shares) | 55,553,149 | ||||
Beginning Balance | $ 556 | ||||
Issuance of common stock, net, (in shares) | 79,375 | ||||
Issuance of common stock, net | $ 1 | ||||
Tax payments for restricted stock upon vesting, (in shares) | (69,334) | ||||
Tax payments for restricted stock upon vesting | $ (1) | ||||
Purchases of common stock, (in shares) | (1,293,924) | ||||
Purchases of common stock | $ (13) | ||||
Exercise of stock options, (in shares) | 377,677 | ||||
Exercise of stock options | $ 3 | ||||
Ending Balance, (in shares) | 54,646,943 | 54,646,943 | |||
Ending Balance | $ 546 | $ 546 | |||
Additional Paid-in Capital [Member] | |||||
Stockholders' Deficit [Line Items] | |||||
Beginning Balance | 29,561 | ||||
Tax payments for restricted stock upon vesting | (7,441) | ||||
Purchases of common stock | (52,236) | ||||
Exercise of stock options | 4,456 | ||||
Tax impact from equity-based compensation | 15,745 | ||||
Non-cash compensation expense | 11,188 | ||||
Ending Balance | 1,273 | 1,273 | |||
Retained Deficit [Member] | |||||
Stockholders' Deficit [Line Items] | |||||
Beginning Balance | (1,246,921) | ||||
Net income | 130,030 | ||||
Common stock dividends | (51,095) | ||||
Purchases of common stock | (86,301) | ||||
Ending Balance | (1,254,287) | (1,254,287) | |||
Accumulated Other Comprehensive Loss [Member] | |||||
Stockholders' Deficit [Line Items] | |||||
Beginning Balance | (2,661) | ||||
Currency translation adjustment, net of tax | (820) | ||||
Ending Balance | $ (3,481) | $ (3,481) | |||
[1] | The balance sheet at December 28, 2014 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Dividends - Additional Informat
Dividends - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Oct. 06, 2015 | Sep. 06, 2015 | Sep. 07, 2014 | Sep. 06, 2015 | Sep. 07, 2014 | Dec. 28, 2014 | [1] |
Dividends Payable [Line Items] | |||||||
Dividends declared per share | $ 0.31 | $ 0.25 | $ 0.93 | $ 0.75 | |||
Common stock dividends accrued | $ 17,316 | $ 17,316 | $ 14,351 | ||||
Common stock dividend paid | $ 48,141 | $ 39,208 | |||||
Record date of dividend | Sep. 15, 2015 | ||||||
Dividend payable date | Sep. 30, 2015 | ||||||
Subsequent Event [Member] | |||||||
Dividends Payable [Line Items] | |||||||
Dividends declared per share | $ 0.31 | ||||||
Record date of dividend | Dec. 15, 2015 | ||||||
Dividend payable date | Dec. 30, 2015 | ||||||
[1] | The balance sheet at December 28, 2014 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Accumulated Other Comprehensi29
Accumulated Other Comprehensive Loss - Additional Information (Detail) - USD ($) | 8 Months Ended | |||
Sep. 06, 2015 | Sep. 07, 2014 | Dec. 28, 2014 | [1] | |
Equity [Abstract] | ||||
Accumulated other comprehensive loss | $ (3,481,000) | $ (2,661,000) | ||
Reclassification losses from accumulated other comprehensive loss to net income | $ 0 | $ 0 | ||
[1] | The balance sheet at December 28, 2014 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Open Market Share Repurchase 30
Open Market Share Repurchase Program - Additional Information (Detail) - USD ($) | 3 Months Ended | 8 Months Ended | ||
Sep. 06, 2015 | Sep. 07, 2014 | Sep. 06, 2015 | Sep. 07, 2014 | |
Equity [Abstract] | ||||
Common stock repurchased and retired (in shares) | 365,460 | 242,700 | 1,293,924 | 1,151,931 |
Common stock repurchased and retired | $ 40,900,000 | $ 17,400,000 | $ 138,550,000 | $ 82,407,000 |
Stock repurchase program, amount remaining | 159,400,000 | 159,400,000 | ||
Share repurchase program, approved amount | $ 200,000,000 | $ 200,000,000 |
Carrying Amounts and Fair Value
Carrying Amounts and Fair Values of Certain Assets (Detail) - USD ($) $ in Thousands | Sep. 06, 2015 | Dec. 28, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents, carrying amount | $ 17,370 | $ 16,290 |
Restricted cash equivalents, carrying amount | 57,855 | 93,121 |
Investments in marketable securities, carrying amount | 5,656 | 4,586 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents, fair value | 17,370 | 16,290 |
Restricted cash equivalents, fair value | 57,855 | 93,121 |
Investments in marketable securities, carrying amount | $ 5,656 | $ 4,586 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - Fixed Rate Senior Notes [Member] - USD ($) $ in Millions | Sep. 06, 2015 | Dec. 28, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Principal amount of outstanding debt | $ 1,522 | $ 1,522 |
Fair value of debt outstanding | $ 1,572 | $ 1,597 |
Sale of Company-Owned Stores -
Sale of Company-Owned Stores - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 23, 2014USD ($)Store | |
Restructuring and Related Activities [Abstract] | |
Number of company-owned stores sold | Store | 14 |
Pre-tax gain on sale of assets, net of goodwill reduction, charged to general and administrative expenses | $ 1.7 |
Reduction of goodwill related to sale of stores | 0.5 |
Deferred tax valuation allowance | $ 0.3 |
Legal Matters - Additional Info
Legal Matters - Additional Information (Detail) $ in Millions | 8 Months Ended |
Sep. 06, 2015USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Amount delivered for plaintiff | $ 32 |
Percentage liable by company for plaintiff | 60.00% |
Supplemental Disclosures of C35
Supplemental Disclosures of Cash Flow Information - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 8 Months Ended | |
Sep. 06, 2015 | Mar. 22, 2015 | Sep. 06, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |||
Accruals for capital expenditures related to non-cash investing activities | $ 1 | ||
Extended lease agreement expiration date | 2028-08 | ||
Increase in capital lease assets and liabilities related to non-cash financing activities | $ 0.6 | $ 3.4 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Sep. 28, 2015 | Sep. 06, 2015 |
Subsequent Event [Member] | ||
Debt Instrument [Line Items] | ||
Principal amortization payments for remainder of fiscal year previously not made in future quarters | $ 26,900,000 | |
Debt instrument, stated percentage | 5.216% | |
Minimum [Member] | Subsequent Event [Member] | ||
Debt Instrument [Line Items] | ||
Leverage ratio of total debt to earnings before interest, tax, depreciation amortization | 4.5 | |
2012 Notes [Member] | ||
Debt Instrument [Line Items] | ||
Variable fund notes | $ 100,000,000 | |
2012 Notes [Member] | Subsequent Event [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 1,500,000,000 | |
Debt instrument prepay and retire percentage | 35.00% | |
Prepayment of fixed rate notes | $ 551,300,000 | |
Variable fund notes | $ 125,000,000 |
Casualty Insurance - Additional
Casualty Insurance - Additional Information (Detail) $ in Millions | 3 Months Ended |
Sep. 06, 2015USD ($) | |
Casualty Insurance Charge [Line Items] | |
Pre-tax incremental insurance expense | $ 5.7 |
Domestic Stores [Member] | Domestic Company Owned Stores [Member] | Cost of Sales [Member] | |
Casualty Insurance Charge [Line Items] | |
Pre-tax incremental insurance expense | 4.3 |
Supply Chain [Member] | Cost of Sales [Member] | |
Casualty Insurance Charge [Line Items] | |
Pre-tax incremental insurance expense | $ 1.4 |