Domino's Pizza (DPZ) 10-Q 18 Oct 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	8 Months Ended
	Sep. 11, 2016	Oct. 11, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 11, 2016
Document Fiscal Year Focus	2,016
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		48,078,847

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 11, 2016	Jan. 03, 2016	[1]
Current assets:
Cash and cash equivalents	$ 29,981	$ 133,449
Restricted cash and cash equivalents	123,569	180,940
Accounts receivable	138,107	131,582
Inventories	38,834	36,861
Prepaid expenses and other	26,865	20,646
Advertising fund assets, restricted	115,234	99,159
Total current assets	472,590	602,637
Property, plant and equipment:
Land and buildings	29,105	29,064
Leasehold and other improvements	116,893	111,071
Equipment	197,107	186,405
Construction in progress	6,409	9,633
Property, plant and equipment, Gross, Total	349,514	336,173
Accumulated depreciation and amortization	(216,913)	(204,283)
Property, plant and equipment, net	132,601	131,890
Other assets:
Goodwill	16,097	16,097
Capitalized software	36,028	28,505
Other assets	16,467	14,851
Deferred income taxes	2,824	5,865
Total other assets	71,416	65,318
Total assets	676,607	799,845
Current liabilities:
Current portion of long-term debt	73,877	59,333
Accounts payable	103,994	106,927
Dividends payable	18,547	557
Insurance reserves	18,371	17,597
Advertising fund liabilities	115,234	99,159
Other accrued liabilities	80,494	92,410
Total current liabilities	410,517	375,983
Long-term liabilities:
Long-term debt, less current portion	2,156,884	2,181,460
Insurance reserves	24,629	23,314
Other accrued liabilities	20,723	19,339
Total long-term liabilities	2,202,236	2,224,113
Stockholders' deficit:
Common stock	481	498
Additional paid-in capital	138	6,942
Retained deficit	(1,934,177)	(1,804,143)
Accumulated other comprehensive loss	(2,588)	(3,548)
Total stockholders' deficit	(1,936,146)	(1,800,251)
Total liabilities and stockholders' deficit	$ 676,607	$ 799,845
[1]	The balance sheet at January 3, 2016 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. 11, 2016	Sep. 06, 2015	Sep. 11, 2016	Sep. 06, 2015
Revenues:
Revenue	$ 566,677	$ 484,696	$ 1,653,193	$ 1,475,345
Cost of sales:
Cost of sales	392,774	342,742	1,140,236	1,023,653
Operating margin	173,903	141,954	512,957	451,692
General and administrative	72,992	61,411	209,632	184,665
Income from operations	100,911	80,543	303,325	267,027
Interest income	83	64	556	203
Interest expense	(25,180)	(19,979)	(76,533)	(59,142)
Income before provision for income taxes	75,814	60,628	227,348	208,088
Provision for income taxes	28,582	22,796	85,403	78,058
Net income	$ 47,232	$ 37,832	$ 141,945	$ 130,030
Earnings per share:
Common stock - basic	$ 0.98	$ 0.69	$ 2.90	$ 2.37
Common stock - diluted	0.96	0.67	2.82	2.30
Dividends declared per share	$ 0.38	$ 0.31	$ 1.14	$ 0.93
Domestic Stores [Member] | Domestic Company Owned Stores [Member]
Revenues:
Revenue	$ 100,966	$ 86,456	$ 295,243	$ 267,625
Cost of sales:
Cost of sales	77,221	70,032	223,771	204,266
Domestic Stores [Member] | Domestic Franchise [Member]
Revenues:
Revenue	70,637	59,385	208,463	181,986
Supply Chain [Member]
Revenues:
Revenue	355,036	303,591	1,029,990	918,150
Cost of sales:
Cost of sales	315,553	272,710	916,465	819,387
International Franchise [Member]
Revenues:
Revenue	$ 40,038	$ 35,264	$ 119,497	$ 107,584

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		8 Months Ended
	Sep. 11, 2016	Sep. 06, 2015	Sep. 11, 2016	Sep. 06, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 47,232	$ 37,832	$ 141,945	$ 130,030
Other comprehensive income (loss), before tax:
Currency translation adjustment	(186)	(961)	927	(1,694)
Tax attributes of items in other comprehensive income (loss):
Currency translation adjustment	173	409	33	874
Other comprehensive income (loss), net of tax	(13)	(552)	960	(820)
Comprehensive income	$ 47,219	$ 37,280	$ 142,905	$ 129,210

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	8 Months Ended
	Sep. 11, 2016		Sep. 06, 2015
Cash flows from operating activities:
Net income	$ 141,945		$ 130,030
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	25,460		22,695
Loss (gain) on sale/disposal of assets	473		(73)
Amortization of debt issuance costs	4,562		3,825
Provision for deferred income taxes	2,657		959
Non-cash compensation expense	12,344		11,188
Tax impact from equity-based compensation	(41,479)		(15,745)
Other	(406)		(1,216)
Changes in operating assets and liabilities	17,061		15,645
Net cash provided by operating activities	162,617		167,308
Cash flows from investing activities:
Capital expenditures	(38,254)		(33,834)
Proceeds from sale of assets	4,658		10,464
Changes in restricted cash	57,371		29,933
Other	(1,669)		1,304
Net cash provided by investing activities	22,106		7,867
Cash flows from financing activities:
Proceeds from issuance of long-term debt	63,000		5,000
Repayments of long-term debt and capital lease obligations	(77,592)		(5,198)
Proceeds from exercise of stock options	12,324		4,459
Tax impact from equity-based compensation	41,479		15,745
Purchases of common stock	(283,858)		(138,550)
Tax payments for restricted stock upon vesting	(5,605)		(7,442)
Payments of common stock dividends and equivalents	(37,548)		(48,141)
Net cash used in financing activities	(287,800)		(174,127)
Effect of exchange rate changes on cash and cash equivalents	(391)		603
Change in cash and cash equivalents	(103,468)		1,651
Cash and cash equivalents, at beginning of period	133,449	[1]	30,855
Cash and cash equivalents, at end of period	$ 29,981		$ 32,506
[1]	The balance sheet at January 3, 2016 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. 11, 2016
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 January 3, 2016 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 11, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending January 1, 2017.

Segment Information

Segment Information	8 Months Ended
	Sep. 11, 2016
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 11, 2016 and September 6, 2015 Domestic Supply International Intersegment Stores Chain Franchise Revenues Other Total Revenues 2016 $ 171,603 $ 383,719 $ 40,038 $ (28,683 ) $ — $ 566,677 2015 145,841 327,885 35,264 (24,294 ) — 484,696 Income from operations 2016 $ 59,251 $ 31,401 $ 31,036 N/A $ (20,777 ) $ 100,911 2015 45,482 23,729 27,922 N/A (16,590 ) 80,543 Segment Income 2016 $ 61,683 $ 33,756 $ 31,100 N/A $ (12,971 ) $ 113,568 2015 47,566 26,061 27,954 N/A (9,760 ) 91,821 Three Fiscal Quarters Ended September 11, 2016 and September 6, 2015 Domestic Supply International Intersegment Stores Chain Franchise Revenues Other Total Revenues 2016 $ 503,706 $ 1,114,096 $ 119,497 $ (84,106 ) $ — $ 1,653,193 2015 449,611 993,015 107,584 (74,865 ) — 1,475,345 Income from operations 2016 $ 176,401 $ 89,044 $ 92,981 N/A $ (55,101 ) $ 303,325 2015 153,732 76,937 86,205 N/A (49,847 ) 267,027 Segment Income 2016 $ 183,088 $ 96,110 $ 93,110 N/A $ (30,706 ) $ 341,602 2015 159,118 83,832 86,211 N/A (28,324 ) 300,837 The following table reconciles Total Segment Income to consolidated income before provision for income taxes. Fiscal Quarter Ended Three Fiscal Quarters Ended September 11, September 6, September 11, September 6, 2016 2015 2016 2015 Total Segment Income $ 113,568 $ 91,821 $ 341,602 $ 300,837 Depreciation and amortization (8,704 ) (7,667 ) (25,460 ) (22,695 ) (Loss) gain on sale/disposal of assets (226 ) (199 ) (473 ) 73 Non-cash compensation expense (3,727 ) (3,412 ) (12,344 ) (11,188 ) Income from operations 100,911 80,543 303,325 267,027 Interest income 83 64 556 203 Interest expense (25,180 ) (19,979 ) (76,533 ) (59,142 ) Income before provision for income taxes $ 75,814 $ 60,628 $ 227,348 $ 208,088

Earnings Per Share

Earnings Per Share	8 Months Ended
	Sep. 11, 2016
Earnings Per Share [Abstract]
Earnings Per Share	3. Earnings Per Share Fiscal Quarter Ended Three Fiscal Quarters Ended September 11, September 6, September 11, September 6, 2016 2015 2016 2015 Net income available to common stockholders - basic and diluted $ 47,232 $ 37,832 $ 141,945 $ 130,030 Basic weighted average number of shares 48,043,379 54,463,073 48,984,734 54,834,627 Earnings per share - basic $ 0.98 $ 0.69 $ 2.90 $ 2.37 Diluted weighted average number of shares 49,242,182 56,115,670 50,309,217 56,584,913 Earnings per share - diluted $ 0.96 $ 0.67 $ 2.82 $ 2.30 The denominators used in calculating diluted earnings per share for common stock for the third quarter of 2016 and three fiscal quarters of 2016 do not include 95,475 and 306,855 options to purchase common stock, respectively, as the effect of including these options would have been anti-dilutive. The denominators used in calculating diluted earnings per share for the third quarter of 2016 and three fiscal quarters of 2016 do not include 58,030 and 84,320 restricted performance shares, respectively, as the effect of including these shares would have been anti-dilutive. The denominators used in calculating diluted earnings per share for common stock for both 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 the third quarter of 2015 and three fiscal quarters of 2015 do not include 60,770 and 65,840 restricted performance shares, respectively, as the effect of including these shares would have been anti-dilutive.

Stockholders' Deficit

Stockholders' Deficit	8 Months Ended
	Sep. 11, 2016
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 2016. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at January 3, 2016 49,838,221 $ 498 $ 6,942 $ (1,804,143 ) $ (3,548 ) Net income — — — 141,945 — Common stock dividends and equivalents — — — (55,511 ) — Issuance of common stock, net 74,331 1 — — — Tax payments for restricted stock upon vesting (47,252 ) — (5,605 ) — — Purchases of common stock (2,714,322 ) (27 ) (67,363 ) (216,468 ) — Exercise of stock options 926,390 9 12,315 — — Tax impact from equity-based compensation — — 41,479 — — Non-cash compensation expense — — 12,344 — — Other — — 26 — — Currency translation adjustment, net of tax — — — — 960 Balance at September 11, 2016 48,077,368 $ 481 $ 138 $ (1,934,177 ) $ (2,588 ) On March 14, 2016, the Company received and retired 456,936 shares of its common stock in connection with the final settlement of its previously announced $600.0 million accelerated share repurchase (“ASR”) program. At the commencement of the program, in the fourth quarter of 2015, the Company paid $600.0 million to a counterparty and received and retired a portion of the shares from the ASR program, based on the terms of the related ASR agreement.

Dividends

Dividends	8 Months Ended
	Sep. 11, 2016
Statement of Stockholders' Equity [Abstract]
Dividends	5. Dividends During the third quarter of 2016, on July 20, 2016, the Company’s Board of Directors declared a $0.38 per share quarterly dividend on its outstanding common stock for shareholders of record as of September 15, 2016 which was paid on September 30, 2016. The Company had approximately $18.5 million accrued for common stock dividends at September 11, 2016. Subsequent to the third quarter, on October 14, 2016, the Company’s Board of Directors declared a $0.38 per share quarterly dividend on its outstanding common stock for shareholders of record as of December 15, 2016 to be paid on December 30, 2016.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	8 Months Ended
	Sep. 11, 2016
Equity [Abstract]
Accumulated Other Comprehensive Loss	6. Accumulated Other Comprehensive Loss The approximately $2.6 million of accumulated other comprehensive loss at September 11, 2016 and the approximately $3.5 million of accumulated other comprehensive loss at January 3, 2016 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 2016 or the three fiscal quarters of 2015.

Open Market Share Repurchase Pr

Open Market Share Repurchase Program	8 Months Ended
	Sep. 11, 2016
Equity [Abstract]
Open Market Share Repurchase Program	7. Open Market Share Repurchase Program During the first quarter of 2016, the Company received and retired 456,936 shares of its common stock in connection with the final settlement of its previously announced $600.0 million ASR program. During the third quarter of 2016, the Company repurchased and retired 412,260 shares of its common stock under its Board of Directors approved open market share repurchase program for a total of approximately $59.7 million. During the three fiscal quarters of 2016, the Company received and retired 456,936 shares of its common stock in connection with its ASR program and repurchased and retired 2,257,386 shares of its common stock for approximately $283.9 million. As of September 11, 2016, the end of the third quarter, the Company had a total remaining authorized amount for share repurchases of approximately $165.5 million. During the third quarter of 2015, the Company repurchased and retired 365,460 shares of its common stock for approximately $40.9 million; during the three fiscal quarters of 2015, the Company repurchased and retired 1,293,924 shares of its common stock for approximately $138.6 million.

Fair Value Measurements

Fair Value Measurements	8 Months Ended
	Sep. 11, 2016
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 11, 2016 and January 3, 2016: At September 11, 2016 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Amount Inputs Inputs Inputs Cash equivalents $ 12,051 $ 12,051 $ — $ — Restricted cash equivalents 69,451 69,451 — — Investments in marketable securities 7,558 7,558 — — At January 3, 2016 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Amount Inputs Inputs Inputs Cash equivalents $ 108,766 $ 108,766 $ — $ — Restricted cash equivalents 128,554 128,554 — — Investments in marketable securities 6,054 6,054 — — At September 11, 2016, management estimates that the approximately $923.0 million in principal amount of outstanding fixed rate notes from its 2012 recapitalization had a fair value of approximately $945.2 million; and at January 3, 2016, management estimates that the approximately $962.7 million in principal amount of outstanding fixed rate notes from its 2012 recapitalization had a fair value of approximately $991.6 million. At September 11, 2016, management estimates that the $496.3 million in principal amount of outstanding five-year fixed rate notes from its 2015 recapitalization had a fair value of approximately $501.2 million; and at January 3, 2016, management estimates that the $500.0 million in principal amount of outstanding five-year fixed rate notes from its 2015 recapitalization had a fair value of approximately $489.5 million. At September 11, 2016, management estimates that the $794.0 million in principal amount of outstanding ten-year fixed rate notes from its 2015 recapitalization had a fair value of approximately $801.1 million; and at January 3, 2016, management estimates that the $800.0 million in principal amount of outstanding ten-year fixed rate notes from its 2015 recapitalization had a fair value of approximately $781.6 million. The fixed rate notes are classified as a Level 2 measurement, as the Company estimates 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 those 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.

Legal Matters

Legal Matters	8 Months Ended
	Sep. 11, 2016
Commitments and Contingencies Disclosure [Abstract]
Legal Matters	9. Legal Matters On February 14, 2011, Domino’s Pizza LLC was named as a defendant in a lawsuit along with Fischler Enterprises of C.F., Inc., a franchisee, and Jeffrey S. Kidd, the franchisee’s delivery driver, filed by Yvonne Wiederhold, the plaintiff, as Personal Representative of the Estate of Richard E. Wiederhold, deceased. The case involved a traffic accident in which the franchisee’s delivery driver is alleged to have caused an accident involving a vehicle driven by Richard Wiederhold. Mr. Wiederhold sustained spinal injuries resulting in quadriplegia and passed away several months after the accident. The jury returned a $10.1 million judgment for the plaintiff where the Company and Mr. Kidd were found to be 90% liable (after certain offsets and other deductions the final verdict was $8.9 million). In the second quarter of 2016, the trial court ruled on all post-judgment motions and entered the judgment. The Company denies liability and in the third quarter of 2016 filed an appeal of the verdict on a variety of grounds. On September 11, 2012, Domino’s Pizza LLC was named as a defendant in a lawsuit along with MAC Pizza Management, Inc., a large franchisee, and Joshua Balka, the franchisee’s delivery driver, filed by Raghurami Reddy, the plaintiff. The case involved a traffic accident in which the franchisee’s delivery driver collided with another vehicle, where the driver of the other vehicle sustained head injuries and the passenger of the other vehicle sustained fatal injuries. 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 filed a Petition for Review with the Supreme Court of the State of Texas. The Company filed opposition to the writ of review and asserted that the claims were appropriately dismissed by the Court of Appeals of the State of Texas. In the second quarter of 2016, the Texas Supreme Court rejected the plaintiffs’ writ of certiorari, leaving the appellate court’s favorable decision to stand. During the fourth quarter of 2016, the Plaintiff filed a petition for writ of certiorari with the U.S. Supreme Court. The Company continues to assert that the claims were appropriately dismissed by the Court of Appeals of the State of Texas.

Supplemental Disclosures of Cas

Supplemental Disclosures of Cash Flow Information	8 Months Ended
	Sep. 11, 2016
Supplemental Cash Flow Elements [Abstract]
Supplemental Disclosures of Cash Flow Information	10. Supplemental Disclosures of Cash Flow Information The Company had non-cash investing activities related to accruals for capital expenditures of $0.5 million at September 11, 2016 and $1.0 million at September 6, 2015. 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.

New Accounting Pronouncements

New Accounting Pronouncements	8 Months Ended
	Sep. 11, 2016
Accounting Changes and Error Corrections [Abstract]
New Accounting Pronouncements	11. New Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU 2016-04, Liabilities – Extinguishment of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products Revenues from Contracts with Customers In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting Revenue from Contracts with Customers (Topic 606) The amendments in ASU 2016-08 clarify how an entity should identify the specified good or service for the principal versus agent evaluation and how it should apply the control principle to certain types of arrangements. ASU 2016-10 clarifies the following two aspects of ASU 2014-09: identifying performance obligations and licensing implementation guidance. ASU 2016-11 rescinds several SEC Staff Announcements that are codified in Topic 605, including, among other items, guidance relating to accounting for consideration given by a vendor to a customer, as well as accounting for shipping and handling fees and freight services. ASU 2016-12 provides clarification to Topic 606 on how to assess collectability, present sales tax, treat noncash consideration, and account for completed and modified contracts at the time of transition. In addition, ASU 2016-12 clarifies that an entity retrospectively applying the guidance in Topic 606 is not required to disclose the effect of the accounting change in the period of adoption. The effective date and transition requirements for these amendments are the same as the effective date and transition requirements of ASU 2014-09, which is effective for fiscal years, and for interim periods within those years, beginning after December 15, 2017. The Company is currently assessing the impact of these ASUs on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments

Segment Information (Tables)

Segment Information (Tables)	8 Months Ended
	Sep. 11, 2016
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 11, 2016 and September 6, 2015 Domestic Supply International Intersegment Stores Chain Franchise Revenues Other Total Revenues 2016 $ 171,603 $ 383,719 $ 40,038 $ (28,683 ) $ — $ 566,677 2015 145,841 327,885 35,264 (24,294 ) — 484,696 Income from operations 2016 $ 59,251 $ 31,401 $ 31,036 N/A $ (20,777 ) $ 100,911 2015 45,482 23,729 27,922 N/A (16,590 ) 80,543 Segment Income 2016 $ 61,683 $ 33,756 $ 31,100 N/A $ (12,971 ) $ 113,568 2015 47,566 26,061 27,954 N/A (9,760 ) 91,821 Three Fiscal Quarters Ended September 11, 2016 and September 6, 2015 Domestic Supply International Intersegment Stores Chain Franchise Revenues Other Total Revenues 2016 $ 503,706 $ 1,114,096 $ 119,497 $ (84,106 ) $ — $ 1,653,193 2015 449,611 993,015 107,584 (74,865 ) — 1,475,345 Income from operations 2016 $ 176,401 $ 89,044 $ 92,981 N/A $ (55,101 ) $ 303,325 2015 153,732 76,937 86,205 N/A (49,847 ) 267,027 Segment Income 2016 $ 183,088 $ 96,110 $ 93,110 N/A $ (30,706 ) $ 341,602 2015 159,118 83,832 86,211 N/A (28,324 ) 300,837
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 11, September 6, September 11, September 6, 2016 2015 2016 2015 Total Segment Income $ 113,568 $ 91,821 $ 341,602 $ 300,837 Depreciation and amortization (8,704 ) (7,667 ) (25,460 ) (22,695 ) (Loss) gain on sale/disposal of assets (226 ) (199 ) (473 ) 73 Non-cash compensation expense (3,727 ) (3,412 ) (12,344 ) (11,188 ) Income from operations 100,911 80,543 303,325 267,027 Interest income 83 64 556 203 Interest expense (25,180 ) (19,979 ) (76,533 ) (59,142 ) Income before provision for income taxes $ 75,814 $ 60,628 $ 227,348 $ 208,088

Earnings Per Share (Tables)

Earnings Per Share (Tables)	8 Months Ended
	Sep. 11, 2016
Earnings Per Share [Abstract]
Earnings Per Share	Fiscal Quarter Ended Three Fiscal Quarters Ended September 11, September 6, September 11, September 6, 2016 2015 2016 2015 Net income available to common stockholders - basic and diluted $ 47,232 $ 37,832 $ 141,945 $ 130,030 Basic weighted average number of shares 48,043,379 54,463,073 48,984,734 54,834,627 Earnings per share - basic $ 0.98 $ 0.69 $ 2.90 $ 2.37 Diluted weighted average number of shares 49,242,182 56,115,670 50,309,217 56,584,913 Earnings per share - diluted $ 0.96 $ 0.67 $ 2.82 $ 2.30

Stockholders' Deficit (Tables)

Stockholders' Deficit (Tables)	8 Months Ended
	Sep. 11, 2016
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 2016. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at January 3, 2016 49,838,221 $ 498 $ 6,942 $ (1,804,143 ) $ (3,548 ) Net income — — — 141,945 — Common stock dividends and equivalents — — — (55,511 ) — Issuance of common stock, net 74,331 1 — — — Tax payments for restricted stock upon vesting (47,252 ) — (5,605 ) — — Purchases of common stock (2,714,322 ) (27 ) (67,363 ) (216,468 ) — Exercise of stock options 926,390 9 12,315 — — Tax impact from equity-based compensation — — 41,479 — — Non-cash compensation expense — — 12,344 — — Other — — 26 — — Currency translation adjustment, net of tax — — — — 960 Balance at September 11, 2016 48,077,368 $ 481 $ 138 $ (1,934,177 ) $ (2,588 ) On March 14, 2016, the Company received and retired 456,936 shares of its common stock in connection with the final settlement of its previously announced $600.0 million accelerated share repurchase (“ASR”) program. At the commencement of the program, in the fourth quarter of 2015, the Company paid $600.0 million to a counterparty and received and retired a portion of the shares from the ASR program, based on the terms of the related ASR agreement.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	8 Months Ended
	Sep. 11, 2016
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 11, 2016 and January 3, 2016: At September 11, 2016 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Amount Inputs Inputs Inputs Cash equivalents $ 12,051 $ 12,051 $ — $ — Restricted cash equivalents 69,451 69,451 — — Investments in marketable securities 7,558 7,558 — — At January 3, 2016 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Amount Inputs Inputs Inputs Cash equivalents $ 108,766 $ 108,766 $ — $ — Restricted cash equivalents 128,554 128,554 — — Investments in marketable securities 6,054 6,054 — —

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. 11, 2016	Sep. 06, 2015	Sep. 11, 2016	Sep. 06, 2015
Segment Reporting Information [Line Items]
Revenues	$ 566,677	$ 484,696	$ 1,653,193	$ 1,475,345
Income from operations	100,911	80,543	303,325	267,027
Segment Income	113,568	91,821	341,602	300,837
Supply Chain [Member]
Segment Reporting Information [Line Items]
Revenues	355,036	303,591	1,029,990	918,150
International Franchise [Member]
Segment Reporting Information [Line Items]
Revenues	40,038	35,264	119,497	107,584
Operating Segments [Member] | Domestic Stores [Member]
Segment Reporting Information [Line Items]
Revenues	171,603	145,841	503,706	449,611
Income from operations	59,251	45,482	176,401	153,732
Segment Income	61,683	47,566	183,088	159,118
Operating Segments [Member] | Supply Chain [Member]
Segment Reporting Information [Line Items]
Revenues	383,719	327,885	1,114,096	993,015
Income from operations	31,401	23,729	89,044	76,937
Segment Income	33,756	26,061	96,110	83,832
Operating Segments [Member] | International Franchise [Member]
Segment Reporting Information [Line Items]
Revenues	40,038	35,264	119,497	107,584
Income from operations	31,036	27,922	92,981	86,205
Segment Income	31,100	27,954	93,110	86,211
Intersegment Revenues [Member]
Segment Reporting Information [Line Items]
Revenues	(28,683)	(24,294)	(84,106)	(74,865)
Segment Reconciling [Member]
Segment Reporting Information [Line Items]
Income from operations	(20,777)	(16,590)	(55,101)	(49,847)
Segment Income	$ (12,971)	$ (9,760)	$ (30,706)	$ (28,324)

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. 11, 2016	Sep. 06, 2015	Sep. 11, 2016	Sep. 06, 2015
Segment Reconciliation [Abstract]
Total Segment Income	$ 113,568	$ 91,821	$ 341,602	$ 300,837
Depreciation and amortization	(8,704)	(7,667)	(25,460)	(22,695)
(Loss) gain on sale/disposal of assets	(226)	(199)	(473)	73
Non-cash compensation expense	(3,727)	(3,412)	(12,344)	(11,188)
Income from operations	100,911	80,543	303,325	267,027
Interest income	83	64	556	203
Interest expense	(25,180)	(19,979)	(76,533)	(59,142)
Income before provision for income taxes	$ 75,814	$ 60,628	$ 227,348	$ 208,088

Earnings Per Share (Detail)

Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		8 Months Ended
	Sep. 11, 2016	Sep. 06, 2015	Sep. 11, 2016	Sep. 06, 2015
Earnings Per Share [Abstract]
Net income available to common stockholders - basic and diluted	$ 47,232	$ 37,832	$ 141,945	$ 130,030
Basic weighted average number of shares	48,043,379	54,463,073	48,984,734	54,834,627
Earnings per share - basic	$ 0.98	$ 0.69	$ 2.90	$ 2.37
Diluted weighted average number of shares	49,242,182	56,115,670	50,309,217	56,584,913
Earnings per share - diluted	$ 0.96	$ 0.67	$ 2.82	$ 2.30

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares	3 Months Ended		8 Months Ended
	Sep. 11, 2016	Sep. 06, 2015	Sep. 11, 2016	Sep. 06, 2015
Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive Securities Excluded from Computation of Earnings Per Share	95,475	188,080	306,855	188,080
Restricted Performance Shares [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive Securities Excluded from Computation of Earnings Per Share	58,030	60,770	84,320	65,840

Changes in Stockholders' Defici

Changes in Stockholders' Deficit (Detail) - USD ($) $ in Thousands		3 Months Ended		8 Months Ended
		Sep. 11, 2016	Sep. 06, 2015	Sep. 11, 2016	Sep. 06, 2015
Stockholders' Deficit [Line Items]
Beginning Balance	[1]			$ (1,800,251)
Net income		$ 47,232	$ 37,832	141,945	$ 130,030
Tax payments for restricted stock upon vesting				(5,605)	(7,442)
Non-cash compensation expense		(3,727)	$ (3,412)	(12,344)	$ (11,188)
Ending Balance		$ (1,936,146)		$ (1,936,146)
Common Stock [Member]
Stockholders' Deficit [Line Items]
Beginning Balance, (in shares)				49,838,221
Beginning Balance				$ 498
Issuance of common stock, net, (in shares)				74,331
Issuance of common stock, net				$ 1
Tax payments for restricted stock upon vesting, (in shares)				(47,252)
Purchases of common stock, (in shares)				(2,714,322)
Purchases of common stock				$ (27)
Exercise of stock options, (in shares)				926,390
Exercise of stock options				$ 9
Ending Balance, (in shares)		48,077,368		48,077,368
Ending Balance		$ 481		$ 481
Additional Paid-in Capital [Member]
Stockholders' Deficit [Line Items]
Beginning Balance				6,942
Tax payments for restricted stock upon vesting				(5,605)
Purchases of common stock				(67,363)
Exercise of stock options				12,315
Tax impact from equity-based compensation				41,479
Non-cash compensation expense				12,344
Other				26
Ending Balance		138		138
Retained Deficit [Member]
Stockholders' Deficit [Line Items]
Beginning Balance				(1,804,143)
Net income				141,945
Common stock dividends and equivalents				(55,511)
Purchases of common stock				(216,468)
Ending Balance		(1,934,177)		(1,934,177)
Accumulated Other Comprehensive Loss [Member]
Stockholders' Deficit [Line Items]
Beginning Balance				(3,548)
Currency translation adjustment, net of tax				960
Ending Balance		$ (2,588)		$ (2,588)
[1]	The balance sheet at January 3, 2016 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.

Stockholders' Deficit - Additio

Stockholders' Deficit - Additional Information (Detail) - USD ($) $ in Thousands	Mar. 14, 2016	Sep. 11, 2016	Jan. 03, 2016	Sep. 06, 2015	Sep. 11, 2016	Sep. 06, 2015
Stockholders' Deficit [Line Items]
Common stock repurchased and retired (in shares)	456,936	412,260		365,460		1,293,924
Accelerated share repurchase, agreement amount	$ 600,000
Payment to counterparty		$ 59,700		$ 40,900	$ 283,858	$ 138,550
Counterparty [Member]
Stockholders' Deficit [Line Items]
Payment to counterparty			$ 600,000

Dividends - Additional Informat

Dividends - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	Oct. 14, 2016	Sep. 11, 2016	Sep. 06, 2015	Sep. 11, 2016	Sep. 06, 2015	Jan. 03, 2016	[1]
Dividends Payable [Line Items]
Dividends declared per share		$ 0.38	$ 0.31	$ 1.14	$ 0.93
Common stock dividends accrued		$ 18,547		$ 18,547		$ 557
Dividend declared date		Jul. 20, 2016
Record date of dividend		Sep. 15, 2016
Dividend payable date		Sep. 30, 2016
Subsequent Event [Member]
Dividends Payable [Line Items]
Dividends declared per share	$ 0.38
Record date of dividend	Dec. 15, 2016
Dividend payable date	Dec. 30, 2016
[1]	The balance sheet at January 3, 2016 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 Comprehensi28

Accumulated Other Comprehensive Loss - Additional Information (Detail) - USD ($)	8 Months Ended
	Sep. 11, 2016	Sep. 06, 2015	Jan. 03, 2016	[1]
Equity [Abstract]
Accumulated other comprehensive loss	$ (2,588,000)		$ (3,548,000)
Reclassification losses from accumulated other comprehensive loss to net income	$ 0	$ 0
[1]	The balance sheet at January 3, 2016 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 29

Open Market Share Repurchase Program - Additional Information (Detail) - USD ($) $ in Thousands	Mar. 14, 2016	Sep. 11, 2016	Mar. 27, 2016	Sep. 06, 2015	Sep. 11, 2016	Sep. 06, 2015
Share Repurchases [Line Items]
Accelerated share repurchase agreement			$ 600,000
Common stock repurchased and retired (in shares)	456,936	412,260		365,460		1,293,924
Common stock repurchased and retired		$ 59,700		$ 40,900	$ 283,858	$ 138,550
Stock repurchase program, amount remaining		$ 165,500			$ 165,500
Accelerated Share Repurchase Program [Member]
Share Repurchases [Line Items]
Common stock repurchased and retired (in shares)			456,936		456,936

Carrying Amounts and Fair Value

Carrying Amounts and Fair Values of Certain Assets (Detail) - USD ($) $ in Thousands	Sep. 11, 2016	Jan. 03, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents, carrying amount	$ 12,051	$ 108,766
Restricted cash equivalents, carrying amount	69,451	128,554
Investments in marketable securities, carrying amount	7,558	6,054
Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents, fair value	12,051	108,766
Restricted cash equivalents, fair value	69,451	128,554
Investments in marketable securities, carrying amount	$ 7,558	$ 6,054

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions	8 Months Ended
	Sep. 11, 2016	Jan. 03, 2016
Fixed Rate Senior Notes [Member] | 2012 Recapitalization [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Principal amount of outstanding debt	$ 923	$ 962.7
Fair value of debt outstanding	945.2	991.6
Five Year Fixed Rate Notes [Member] | 2015 Recapitalization [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Principal amount of outstanding debt	496.3	500
Fair value of debt outstanding	$ 501.2	489.5
Debt instrument, term	5 years
Ten Year Fixed Rate Notes [Member] | 2015 Recapitalization [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Principal amount of outstanding debt	$ 794	800
Fair value of debt outstanding	$ 801.1	$ 781.6
Debt instrument, term	10 years

Legal Matters - Additional Info

Legal Matters - Additional Information (Detail) - USD ($) $ in Millions	Sep. 11, 2012	Feb. 14, 2011
Yvonne Wiederhold [Member]
Legal Settlement By Party [Line Items]
Amount delivered for plaintiff		$ 10.1
Percentage liable by company for plaintiff		90.00%
Litigation settlement, amount		$ 8.9
Raghurami Reddy [Member]
Legal Settlement By Party [Line Items]
Amount delivered for plaintiff	$ 32
Percentage liable by company for plaintiff	60.00%

Supplemental Disclosures of C33

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. 11, 2016	Sep. 06, 2015
Supplemental Cash Flow Elements [Abstract]
Accruals for capital expenditures related to non-cash investing activities			$ 0.5	$ 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