Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 13, 2018 | Jun. 18, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | DPZ | ||
Entity Registrant Name | DOMINOS PIZZA INC | ||
Entity Central Index Key | 1,286,681 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 43,018,242 | ||
Entity Public Float | $ 10,126,535,325 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 35,768 | $ 42,815 |
Restricted cash and cash equivalents | 191,762 | 126,496 |
Accounts receivable, net of reserves of $1,424 in 2017 and $2,342 in 2016 | 173,677 | 150,369 |
Inventories | 39,961 | 40,181 |
Prepaid expenses and other | 18,389 | 17,635 |
Advertising fund assets, restricted | 120,223 | 118,377 |
Total current assets | 579,780 | 495,873 |
PROPERTY, PLANT AND EQUIPMENT: | ||
Land and buildings | 29,171 | 29,129 |
Leasehold and other improvements | 128,613 | 120,726 |
Equipment | 216,599 | 201,827 |
Construction in progress | 32,482 | 7,816 |
Property, plant and equipment, Gross | 406,865 | 359,498 |
Accumulated depreciation and amortization | (237,279) | (220,964) |
Property, plant and equipment, net | 169,586 | 138,534 |
OTHER ASSETS: | ||
Investments in marketable securities, restricted | 8,119 | 7,260 |
Goodwill | 15,423 | 16,058 |
Capitalized software, net of accumulated amortization of $78,696 in 2017 and $68,727 in 2016 | 52,823 | 40,256 |
Other assets, net of accumulated amortization of $776 in 2017 and $776 in 2016 | 8,272 | 9,379 |
Deferred income taxes | 2,750 | 8,935 |
Total other assets | 87,387 | 81,888 |
Total assets | 836,753 | 716,295 |
CURRENT LIABILITIES: | ||
Current portion of long-term debt | 32,324 | 38,887 |
Accounts payable | 106,894 | 111,510 |
Accrued compensation | 37,417 | 42,089 |
Accrued interest | 22,095 | 18,826 |
Insurance reserves | 20,754 | 16,742 |
Advertising fund liabilities | 120,223 | 118,377 |
Other accrued liabilities | 58,578 | 57,267 |
Total current liabilities | 398,285 | 403,698 |
LONG-TERM LIABILITIES: | ||
Long-term debt, less current portion | 3,121,490 | 2,148,990 |
Insurance reserves | 30,611 | 27,141 |
Other accrued liabilities | 21,751 | 19,609 |
Total long-term liabilities | 3,173,852 | 2,195,740 |
Total liabilities | 3,572,137 | 2,599,438 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' DEFICIT: | ||
Common stock, par value $0.01 per share; 170,000,000 shares authorized; 42,898,329 in 2017 and 48,100,143 in 2016 issued and outstanding | 429 | 481 |
Preferred stock, par value $0.01 per share; 5,000,000 shares authorized, none issued | ||
Additional paid-in capital | 5,654 | 1,006 |
Retained deficit | (2,739,437) | (1,881,520) |
Accumulated other comprehensive loss | (2,030) | (3,110) |
Total stockholders' deficit | (2,735,384) | (1,883,143) |
Total liabilities and stockholders' deficit | $ 836,753 | $ 716,295 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, reserves | $ 1,424 | $ 2,342 |
Capitalized software, accumulated amortization | 78,696 | 68,727 |
Other assets, accumulated amortization | $ 776 | $ 776 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 170,000,000 | 170,000,000 |
Common stock, shares issued | 42,898,329 | 48,100,143 |
Common stock, shares outstanding | 42,898,329 | 48,100,143 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
REVENUES: | |||
Revenue | $ 2,787,979 | $ 2,472,628 | $ 2,216,528 |
COST OF SALES: | |||
Cost of sales | 1,921,988 | 1,704,937 | 1,533,397 |
OPERATING MARGIN | 865,991 | 767,691 | 683,131 |
GENERAL AND ADMINISTRATIVE | 344,759 | 313,649 | 277,692 |
INCOME FROM OPERATIONS | 521,232 | 454,042 | 405,439 |
INTEREST INCOME | 1,462 | 685 | 313 |
INTEREST EXPENSE | (122,541) | (110,069) | (99,537) |
INCOME BEFORE PROVISION FOR INCOME TAXES | 400,153 | 344,658 | 306,215 |
PROVISION FOR INCOME TAXES | 122,248 | 129,980 | 113,426 |
NET INCOME | $ 277,905 | $ 214,678 | $ 192,789 |
EARNINGS PER SHARE: | |||
Common Stock - basic | $ 6.05 | $ 4.41 | $ 3.58 |
Common Stock - diluted | 5.83 | 4.30 | 3.47 |
Dividends declared per share | $ 1.84 | $ 1.52 | $ 1.24 |
Domestic Stores [Member] | Domestic Company Owned Stores [Member] | |||
REVENUES: | |||
Revenue | $ 490,846 | $ 439,024 | $ 396,916 |
COST OF SALES: | |||
Cost of sales | 377,674 | 331,860 | 299,294 |
Domestic Stores [Member] | Domestic Franchise [Member] | |||
REVENUES: | |||
Revenue | 351,387 | 312,260 | 272,808 |
Supply Chain [Member] | |||
REVENUES: | |||
Revenue | 1,739,038 | 1,544,345 | 1,383,161 |
COST OF SALES: | |||
Cost of sales | 1,544,314 | 1,373,077 | 1,234,103 |
International Franchise [Member] | |||
REVENUES: | |||
Revenue | $ 206,708 | $ 176,999 | $ 163,643 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 277,905 | $ 214,678 | $ 192,789 |
OTHER COMPREHENSIVE INCOME (LOSS), BEFORE TAX: | |||
Currency translation adjustment | 1,080 | (94) | (2,076) |
TAX ATTRIBUTES OF ITEMS IN OTHER COMPREHENSIVE INCOME (LOSS): | |||
Currency translation adjustment | 532 | 1,189 | |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 1,080 | 438 | (887) |
COMPREHENSIVE INCOME | $ 278,985 | $ 215,116 | $ 191,902 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
BALANCE at Dec. 28, 2014 | $ 556 | $ 29,561 | $ (1,246,921) | $ (2,661) | |
BALANCE (in shares) at Dec. 28, 2014 | 55,553,149 | ||||
Net income | $ 192,789 | 192,789 | |||
Common stock dividends and equivalents | (66,524) | ||||
Issuance of common stock, net | $ 1 | ||||
Issuance of common stock, net, (in shares) | 78,891 | ||||
Tax payments for restricted stock upon vesting | $ (1) | (7,430) | |||
Tax payments for restricted stock upon vesting, (in shares) | (69,334) | ||||
Purchases of common stock | $ (62) | (55,008) | (683,487) | ||
Purchases of common stock, (in shares) | (6,152,918) | ||||
Exercises of stock options | $ 4 | 4,810 | |||
Exercises of stock options, (in shares) | 428,433 | 428,433 | |||
Tax impact from equity-based compensation | 17,775 | ||||
Non-cash compensation expense | 17,623 | ||||
Other | (389) | ||||
Currency translation adjustment, net of tax | (887) | ||||
BALANCE at Jan. 03, 2016 | $ 498 | 6,942 | (1,804,143) | (3,548) | |
BALANCE (in shares) at Jan. 03, 2016 | 49,838,221 | ||||
Net income | $ 214,678 | 214,678 | |||
Common stock dividends and equivalents | (73,958) | ||||
Issuance of common stock, net | $ 1 | ||||
Issuance of common stock, net, (in shares) | 80,267 | ||||
Tax payments for restricted stock upon vesting | (5,646) | ||||
Tax payments for restricted stock upon vesting, (in shares) | (47,277) | ||||
Purchases of common stock | $ (28) | (82,125) | (218,097) | ||
Purchases of common stock, (in shares) | (2,816,716) | ||||
Exercises of stock options | $ 10 | 15,224 | |||
Exercises of stock options, (in shares) | 1,045,648 | 1,045,648 | |||
Tax impact from equity-based compensation | 48,129 | ||||
Non-cash compensation expense | 18,564 | ||||
Other | (82) | ||||
Currency translation adjustment, net of tax | 438 | ||||
BALANCE at Jan. 01, 2017 | $ (1,883,143) | $ 481 | 1,006 | (1,881,520) | (3,110) |
BALANCE (in shares) at Jan. 01, 2017 | 48,100,143 | 48,100,143 | |||
Net income | $ 277,905 | 277,905 | |||
Common stock dividends and equivalents | (84,215) | ||||
Issuance of common stock, net | $ 1 | ||||
Issuance of common stock, net, (in shares) | 65,669 | ||||
Tax payments for restricted stock upon vesting | $ (1) | (9,448) | |||
Tax payments for restricted stock upon vesting, (in shares) | (49,159) | ||||
Purchases of common stock | $ (56) | (12,590) | (1,051,607) | ||
Purchases of common stock, (in shares) | (5,576,249) | ||||
Exercises of stock options | $ 4 | 6,095 | |||
Exercises of stock options, (in shares) | 357,925 | 357,925 | |||
Non-cash compensation expense | 20,713 | ||||
Other | (122) | ||||
Currency translation adjustment, net of tax | 1,080 | ||||
BALANCE at Dec. 31, 2017 | $ (2,735,384) | $ 429 | $ 5,654 | $ (2,739,437) | $ (2,030) |
BALANCE (in shares) at Dec. 31, 2017 | 42,898,329 | 42,898,329 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 277,905 | $ 214,678 | $ 192,789 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 44,369 | 38,140 | 32,434 |
(Gains) losses on sale/disposal of assets | (3,148) | 863 | 316 |
Benefit for losses on accounts and notes receivable | (277) | (224) | (1,084) |
Provision (benefit) for deferred income taxes | 6,160 | (3,059) | 1,713 |
Amortization of debt issuance costs | 10,976 | 6,418 | 12,393 |
Non-cash compensation expense | 20,713 | 18,564 | 17,623 |
Excess tax benefits from equity-based compensation | (27,227) | (48,129) | (17,775) |
Changes in operating assets and liabilities- | |||
Increase in accounts receivable | (22,649) | (18,724) | (13,678) |
Decrease (increase) in inventories, prepaid expenses and other | 1,527 | (2,947) | (2,262) |
Increase in accounts payable and accrued liabilities | 22,267 | 78,929 | 69,032 |
Increase in insurance reserves | 8,420 | 2,764 | 285 |
Net cash provided by operating activities | 339,036 | 287,273 | 291,786 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (90,011) | (58,555) | (63,282) |
Proceeds from sale of assets | 6,835 | 4,936 | 12,724 |
Change in restricted cash | (65,266) | 54,444 | (59,986) |
Other | (562) | (1,661) | 1,252 |
Net cash used in investing activities | (149,004) | (836) | (109,292) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of long-term debt | 1,900,000 | 63,000 | 1,305,000 |
Repayments of long-term debt and capital lease obligations | (928,193) | (122,334) | (564,403) |
Proceeds from exercises of stock options | 6,099 | 15,234 | 4,814 |
Excess tax benefits from equity-based compensation | 48,129 | 17,775 | |
Purchases of common stock | (1,064,253) | (300,250) | (738,557) |
Tax payments for restricted stock upon vesting | (9,449) | (5,646) | (7,431) |
Payments of common stock dividends and equivalents | (84,298) | (73,925) | (80,329) |
Cash paid for financing costs | (16,846) | (17,367) | |
Other | (205) | (438) | |
Net cash used in financing activities | (197,145) | (375,792) | (80,936) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 66 | (1,279) | 1,036 |
CHANGE IN CASH AND CASH EQUIVALENTS | (7,047) | (90,634) | 102,594 |
CASH AND CASH EQUIVALENTS, AT BEGINNING OF PERIOD | 42,815 | 133,449 | 30,855 |
CASH AND CASH EQUIVALENTS, AT END OF PERIOD | $ 35,768 | $ 42,815 | $ 133,449 |
DESCRIPTION OF BUSINESS AND SUM
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | (1) DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business Domino’s Pizza, Inc. (“DPI”), a Delaware corporation, conducts its operations and derives substantially all of its operating income and cash flows through its wholly-owned subsidiary, Domino’s, Inc. (“Domino’s”) and Domino’s wholly-owned subsidiary, Domino’s Pizza LLC (“DPLLC”). DPI and its wholly-owned subsidiaries (collectively, “the Company”) are primarily engaged in the following business activities: (i) retail sales of food through Company-owned Domino’s Pizza stores; (ii) sales of food, equipment and supplies to Company-owned and franchised Domino’s Pizza stores through Company-owned supply chain centers; and (iii) receipt of royalties and fees from domestic and international Domino’s Pizza franchisees. Principles of Consolidation The accompanying consolidated financial statements include the accounts of DPI and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. Fiscal Year The Company’s fiscal year ends on the Sunday closest to December 31. The 2017 fiscal year ended on December 31, 2017, the 2016 fiscal year ended on January 1, 2017 and the 2015 fiscal year ended on January 3, 2016. The 2017 and 2016 fiscal years consisted of fifty-two Cash and Cash Equivalents Cash equivalents consist of highly liquid investments with original maturities of three months or less at the date of purchase. These investments are carried at cost, which approximates fair value. Restricted Cash and Cash Equivalents Restricted cash and cash equivalents at December 31, 2017 includes $122.9 million of cash and cash equivalents held for future principal and interest payments, $32.1 million of cash equivalents held in a three-month interest reserve, $36.7 million of cash held as collateral for outstanding letters of credit and $0.1 million of other restricted cash. Restricted cash and cash equivalents at January 1, 2017 includes $99.8 million of cash and cash equivalents held for future principal and interest payments and $26.7 million of cash equivalents held in a three-month interest reserve. Inventories Inventories are valued at the lower of cost (on a first-in, first-out 2017 2016 Food $ 36,645 $ 36,644 Equipment and supplies 3,316 3,537 Inventories $ 39,961 $ 40,181 Other Assets Current and long-term other assets primarily include prepaid expenses such as insurance, rent and taxes, deposits, notes receivable, as well as covenants not-to-compete Property, Plant and Equipment Additions to property, plant and equipment are recorded at cost. Repair and maintenance costs are expensed as incurred.Depreciation and amortization expense is provided using the straight-line method over the estimated useful lives of the related assets. Estimated useful lives, other than the estimated useful life of the capital lease assets as described below, are generally as follows (in years): Buildings 20 Leasehold and other improvements 7 – 15 Equipment 3 – 15 Included in land and buildings as of December 31, 2017 and January 1, 2017 are capital lease assets of approximately $4.3 million and $4.7 million, which are net of $6.2 million and $5.8 million of accumulated amortization, respectively, related to the lease of a supply chain center building and the lease of a Company-owned store. The capital lease assets are being amortized using the straight-line method over the respective lease terms. Depreciation and amortization expense on property, plant and equipment was approximately $29.6 million, $27.3 million and $24.1 million in 2017, 2016 and 2015, respectively. Impairments of Long-Lived Assets The Company evaluates the potential impairment of long-lived assets at least annually based on various analyses including the projection of undiscounted cash flows and whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. For Company-owned stores, the Company performs this evaluation on an operating market basis, which the Company has determined to be the lowest level for which identifiable cash flows are largely independent of other cash flows. If the carrying amount of a long-lived asset exceeds the amount of the expected future undiscounted cash flows of that asset, the Company estimates the fair value of the assets. If the carrying amount of the asset exceeds the estimated fair value of the asset, an impairment loss is recognized and the asset is written down to its estimated fair value. The Company did not record any impairment losses on long-lived assets in 2017, 2016 or 2015. Investments in Marketable Securities Investments in marketable securities consist of investments in various mutual funds made by eligible individuals as part of the Company’s deferred compensation plan (Note 7). These investments are stated at aggregate fair value, are restricted and have been placed in a rabbi trust whereby the amounts are irrevocably set aside to fund the Company’s obligations under the deferred compensation plan. The Company classifies and accounts for these investments in marketable securities as trading securities. Debt Issuance Costs Debt issuance costs are recorded as a reduction to the Company’s debt balance and primarily include the expenses incurred by the Company as part of the 2015 and 2017 Recapitalizations (Note 4). Amortization is provided on a straight-line basis (which is materially consistent with the effective interest method) over the expected term of the respective debt instrument to which the costs relate and is included in interest expense. In connection with the 2012 Recapitalization, the Company recorded approximately $39.9 million of debt issuance costs. In connection with the 2015 Recapitalization, the Company expensed approximately $6.9 million of these costs in connection with the extinguishment of $551.3 million of the 2012 Fixed Rate Notes (Note 4). In connection with the 2017 Recapitalization, the Company expensed the approximately $5.5 million in remaining unamortized debt issuance costs associated with the extinguishment of the remaining $910.2 million of the 2012 Fixed Rate Notes. Additionally, in connection with the 2015 and 2017 Recapitalizations, the Company recorded $17.4 million and $16.8 million of debt issuance costs, respectively, which are being amortized into interest expense over the five and ten-year In connection with the aforementioned write-off Goodwill The Company’s goodwill amounts primarily relate to franchise store acquisitions and are not amortized. The Company performs its required impairment tests in the fourth quarter of each fiscal year and did not recognize any goodwill impairment charges in 2017, 2016 or 2015. Capitalized Software Capitalized software is recorded at cost and includes purchased, internally-developed and externally-developed software used in the Company’s operations. Amortization expense is provided using the straight-line method over the estimated useful lives of the software, which range from one to seven years. Capitalized software amortization expense was approximately $14.8 million, $10.8 million and $8.3 million in 2017, 2016 and 2015, respectively. As of December 31, 2017, scheduled amortization for the next five fiscal years was approximately $14.3 million, $9.4 million, $5.3 million, $3.3 million and $1.6 million for 2018, 2019, 2020, 2021 and 2022, respectively. Insurance Reserves The Company has retention programs for workers’ compensation, general liability and owned and non-owned non-owned non-owned Insurance reserves relating to our retention programs are based on undiscounted actuarial estimates. These estimates are based on historical information and on certain assumptions about future events. Changes in assumptions for such factors as medical costs and legal actions, as well as changes in actual experience, could cause these estimates to change in the near term. The Company receives estimates of outstanding insurance exposures from its independent actuary and differences between these estimated actuarial exposures and the Company’s recorded amounts are adjusted as appropriate. Other Accrued Liabilities Current and long-term other accrued liabilities primarily include accruals for income, sales, property and other taxes, legal reserves, store operating expenses, deferred rent expense, dividends payable and deferred compensation liabilities. Foreign Currency Translation The Company’s foreign entities use their local currency as the functional currency. For these entities, the Company translates net assets into U.S. dollars at year end exchange rates, while income and expense accounts are translated at average annual exchange rates. Currency translation adjustments are included in accumulated other comprehensive income (loss) and foreign currency transaction gains and losses are included in determining net income. Revenue Recognition Domestic Company-owned stores revenues are comprised of retail sales of food through Company-owned Domino’s Pizza stores located in the contiguous United States and are recognized when the items are delivered to or carried out by customers. Domestic franchise revenues are primarily comprised of royalties and fees from Domino’s Pizza franchisees with operations in the contiguous United States. Royalty revenues are recognized when the items are delivered to or carried out by franchise customers. Supply chain revenues are primarily comprised of sales of food, equipment and supplies to franchised Domino’s Pizza stores located in the United States and Canada. Revenues from the sales of food are recognized upon delivery of the food to franchisees, while revenues from the sales of equipment and supplies are generally recognized upon shipment of the related products to franchisees. International franchise revenues are primarily comprised of royalties and fees from Domino’s Pizza franchisees outside the contiguous United States. These revenues are recognized consistently with the policies applied for franchise revenues generated in the contiguous United States. Supply Chain Profit-Sharing Arrangements The Company enters into profit-sharing arrangements with domestic and Canadian stores that purchase all of their food from Supply Chain (Note 11). These profit-sharing arrangements generally offer Company-owned stores and participating franchisees with 50% (or a higher percentage in the case of Company-owned stores and certain franchisees who operate a larger number of stores) of their regional supply chain center’s pre-tax Advertising Advertising costs are expensed as incurred. Advertising expense, which relates primarily to Company-owned stores, was approximately $39.8 million, $34.5 million and $32.0 million during 2017, 2016 and 2015, respectively. Domestic Stores (Note 11) are required to contribute a certain percentage of sales to the Domino’s National Advertising Fund Inc. (“DNAF”), a not-for-profit DNAF assets, consisting primarily of cash received from franchisees and accounts receivable from franchisees, can only be used for activities that promote the Domino’s Pizza brand. Accordingly, all assets held by the DNAF are considered restricted. Rent The Company leases certain equipment, vehicles, retail store and supply chain center locations and its corporate headquarters under operating leases with expiration dates through 2033. Rent expenses totaled approximately $57.9 million, $49.9 million and $46.1 million during 2017, 2016 and 2015, respectively. Common Stock Dividends The Company declared and paid dividends of approximately $84.2 million (or $1.84 per share) in 2017, approximately $74.0 million (or $1.52 per share) in 2016 and approximately $66.5 million (or $1.24 per share) in 2015. The Company also paid dividends of $13.8 million in 2015 related to a dividend declaration in 2014. Stock Options and Other Equity-Based Compensation Arrangements The cost of all of the Company’s stock options, as well as other equity-based compensation arrangements, is reflected in the financial statements based on the estimated fair value of the awards. Earnings Per Share The Company discloses two calculations of earnings per share (“EPS”): basic EPS and diluted EPS. The numerator in calculating common stock basic and diluted EPS is consolidated net income. The denominator in calculating common stock basic EPS is the weighted average shares outstanding. The denominator in calculating common stock diluted EPS includes the additional dilutive effect of outstanding stock options, unvested restricted stock grants and unvested performance-based restricted stock grants. Supplemental Disclosures of Cash Flow Information The Company paid interest of approximately $107.4 million, $104.6 million and $80.8 million during 2017, 2016 and 2015, respectively. Cash paid for income taxes was approximately $122.6 million, $74.3 million and $80.1 million in 2017, 2016 and 2015, respectively. The Company had $4.0 million, $3.8 million and $0.8 million of non-cash non-cash New Accounting Pronouncements Recently Adopted Accounting Standards In March 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting 2016-09 As a result, excess tax benefits or deficiencies from equity-based compensation activity are reflected in the consolidated statements of income as a component of the provision for income taxes, whereas they previously were recognized in the consolidated statement of stockholders’ deficit. The Company also elected to account for forfeitures as they occur, rather than to use an estimate of expected forfeitures for financial statement reporting purposes. The adoption of ASU 2016-09 The Company adopted the cash flow presentation prospectively, and accordingly, excess tax benefits from equity-based compensation of $27.2 million in fiscal 2017 are presented as an operating activity, while $48.1 million and $17.8 million of excess tax benefits from equity-based compensation in fiscal 2016 and fiscal 2015, respectively, are presented as a financing activity. The presentation requirements for cash flows related to taxes paid for restricted stock upon vesting had no impact on our consolidated statements of cash flows for any of the periods presented because such cash flows have historically been presented as a financing activity. Accounting Standards Not Yet Adopted The Company has considered all new accounting pronouncements issued by the FASB and concluded the following accounting pronouncements may have a material impact on our consolidated financial statements, or represent accounting pronouncements for which the Company has not yet completed its assessment. In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) non-cash The Company has substantially completed its assessment of ASC 606, and the adoption of this guidance is not expected to have a material impact on its recognition of sales from Company-owned stores, ongoing royalty fees which are based on a percentage of franchise sales, revenues from its supply chain centers, development fees or technology fees. The Company has determined that the store opening fees received from international franchisees do not contain separate and distinct performance obligations from the franchise right and those upfront fees will therefore be recognized as revenue over the term of each respective franchise agreement. Currently, we recognize such fees as revenue when received. The Company does not expect this to have a material impact on its international franchise revenues. However, an adjustment to beginning retained earnings and a corresponding contract liability of approximately $15 million will be established on the date of adoption associated with the fees received through December 31, 2017 that would have been deferred and recognized over the term of each respective franchise agreement if the new guidance had been applied in the past. The Company has also determined that ASC 606 requires a gross presentation on the consolidated statement of income for franchisee contributions received by and related expenses of DNAF, our consolidated not-for-profit In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) 2016-02 2016-02 right-of-use In March 2016, the FASB issued ASU 2016-04, Liabilities – Extinguishment of Liabilities (Subtopic 405-20): 2016-04 Revenues from Contracts with Customers non-financial 2016-04 In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments 2016-13 2016-13 In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash 2016-18), 2016-18 In January 2017, the FASB issued ASU 2017-04 , Intangibles – Goodwill and Other (Topic 35): Simplifying the Test for Goodwill Impairment 2017-04. 2017-04 2017-04 Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | (2) EARNINGS PER SHARE The computation of basic and diluted earnings per common share is as follows (in thousands, except share and per share amounts): 2017 2016 2015 Net income available to common stockholders – basic and diluted $ 277,905 $ 214,678 $ 192,789 Weighted average number of common shares 45,954,659 48,647,167 53,828,609 Earnings per common share – basic $ 6.05 $ 4.41 $ 3.58 Diluted weighted average number of common shares 47,677,834 49,923,859 55,532,955 Earnings per common share – diluted $ 5.83 $ 4.30 $ 3.47 The denominators used in calculating diluted earnings per share for common stock do not include 145,860 options to purchase common stock in 2017, 121,075 options to purchase common stock in 2016 and 188,080 options to purchase common stock in 2015, as the effect of including these options would be anti-dilutive. The denominators used in calculating diluted earnings per share for common stock do not include 110,274 restricted performance shares in 2017, 134,113 restricted performance shares in 2016 and 189,532 restricted performance shares in 2015, as the performance targets for these awards had not yet been met. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | (3) 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 table summarizes the carrying amounts and fair values of certain assets at December 31, 2017: At December 31, 2017 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Cash equivalents $ 7,933 $ 7,933 $ — $ — Restricted cash equivalents 96,375 96,375 — — Investments in marketable securities 8,119 8,119 — — The following table summarizes the carrying amounts and fair values of certain assets at January 1, 2017: At January 1, 2017 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Cash equivalents $ 7,017 $ 7,017 $ — $ — Restricted cash equivalents 69,113 69,113 — — Investments in marketable securities 7,260 7,260 — — |
RECAPITALIZATIONS AND FINANCING
RECAPITALIZATIONS AND FINANCING ARRANGEMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
RECAPITALIZATIONS AND FINANCING ARRANGEMENTS | (4) RECAPITALIZATIONS AND FINANCING ARRANGEMENTS 2017 Recapitalization On July 24, 2017, the Company completed a recapitalization (the “2017 Recapitalization”) in which certain of the Company’s subsidiaries issued new notes pursuant to an asset-backed securitization. The new notes consist of $300.0 million Series 2017-1 Class A-2-I 2017-1 Class A-2-II 2017-1 Class A-2-III Ten-year 2017-1 Class A-1 A portion of the proceeds from the 2017 Recapitalization was used to repay the remaining $910.5 million in outstanding principal and interest under the Company’s 2012 Fixed Rate Notes, pre-fund 2015 and 2012 Recapitalizations The Company previously entered into refinancing transactions in October 2015 (the “2015 Recapitalization”) and in April 2012 (the “2012 Recapitalization”). In connection with the 2015 Recapitalization, the Company issued $1.3 billion aggregate principal amount of fixed rate notes consisting of $500.0 million Series 2015-1 Class A-2-I 2015-1 Class A-2-II Ten-Year 2015-1 Class A-1 A portion of the proceeds from the 2015 Recapitalization was used to make an optional prepayment of approximately $551.3 million in aggregate principal amount of the 2012 Fixed Rate Notes, at par, pay scheduled principal catch-up pre-fund In connection with the 2012 Recapitalization, the Company issued $1.575 billion of Series 2012-1 Class A-2 2012-1 Class A-1 2017 Notes The 2017 Notes have remaining scheduled principal payments of $19.0 million in each of 2018 through 2021, $871.8 million in 2022, $10.0 million in each of 2023 through 2026, and $907.5 million in 2027. During fiscal 2017, the Company made principal payments of approximately $4.8 million on the 2017 Notes. The legal final maturity date of the 2017 Notes is October 2047, but it is anticipated that, unless earlier prepaid to the extent permitted under the related debt agreements, the 2017 Floating Rate Notes and 2017 Five-year Fixed Rate Notes will be repaid on or prior to the anticipated repayment date occurring in July 2022, and the 2017 Ten-year The 2017 Variable Funding Notes allow for advances of up to $175.0 million and issuance of certain other credit instruments, including letters of credit. At the closing date of the 2017 Recapitalization, interest on the 2017 Variable Funding Notes was payable at a per year rate equal to LIBOR plus 180 basis points. On December 15, 2017, certain of the Company’s subsidiaries entered into an agreement to reduce the rate from LIBOR plus 180 basis points to LIBOR plus 150 basis points. The 2017 Variable Funding Notes were undrawn at closing. The unused portion of the 2017 Variable Funding Notes is subject to a commitment fee ranging from 50 to 100 basis points depending on utilization. It is anticipated that any amounts outstanding on the 2017 Variable Funding Notes will be repaid in full on or prior to July 2022, subject to two additional one-year 2015 Notes The 2015 Notes have remaining scheduled principal payments of $13.0 million in each of 2018 and 2019, $490.5 million in 2020, $8.0 million in each of 2021 through 2024, and $732.0 million in 2025. During fiscal 2017, the Company made principal payments of approximately $6.5 million on the 2015 Notes. The legal final maturity date of the 2015 Notes is in October 2045, but it is anticipated that, unless earlier prepaid to the extent permitted under the related debt agreements, the 2015 Five-Year Notes will be repaid on or prior to the anticipated repayment date occurring in October 2020 and the 2015 Ten-Year Debt Issuance Costs and Transaction-Related Expenses During 2017 and in connection with the 2017 Recapitalization, the Company incurred approximately $6.4 million of net pre-tax write-off ten-year During fiscal 2015 and in connection with the 2015 Recapitalization, the Company incurred approximately $8.1 million of net pre-tax write-off of ten-year Guarantees and Covenants of the Notes The Notes are guaranteed by certain subsidiaries of DPLLC and secured by a security interest in substantially all of the assets of the Company, including royalty and certain other income from all domestic and international stores, domestic supply chain income and intellectual property. The restrictions placed on the Company’s subsidiaries require that the Company’s principal and interest obligations have first priority and amounts are segregated weekly to ensure appropriate funds are reserved to pay the quarterly principal and interest amounts due. The amount of weekly cash flow that exceeds the required weekly interest reserve is generally remitted to the Company in the form of a dividend. However, once the required obligations are satisfied, there are no further restrictions, including payment of dividends, on the cash flows of the subsidiaries. The Notes are subject to certain financial and non-financial While the Notes are outstanding, scheduled payments of principal and interest are required to be made on a quarterly basis. The payment of principal of the 2017 Fixed and Floating Rate Notes and the 2015 Fixed Rate Notes shall be suspended if the leverage ratio for the Company is less than or equal to 5.0x total debt, as defined, to adjusted EBITDA, as defined. Scheduled principal payments will resume upon failure to satisfy the aforementioned leverage ratio on an ongoing basis and no catch-up Prior to the 2017 Recapitalization and the repayment of the remaining principal and interest under the 2012 Fixed Rate Notes, the payment of principal of the 2012 Fixed Rate Notes and 2015 Fixed Rate Notes (i) shall be suspended if the leverage ratios for the Company are less than or equal to 4.5x total debt to adjusted EBITDA, as defined, and there are no scheduled principal catch-up catch-up During the first quarter of 2017, the Company met the maximum leverage ratios under the Company’s then outstanding 2012 Fixed Rate Notes and 2015 Notes of less than 4.5x, and, in accordance with the Company’s debt agreements, ceased debt amortization payments beginning in the second quarter of 2017. The Company continued to meet the maximum leverage ratios of less than 4.5x in the third quarter prior to the 2017 Recapitalization and accordingly, did not make previously scheduled debt amortization payments in accordance with the debt agreements. Subsequent to the 2017 Recapitalization, the Company’s leverage ratios exceeded the new maximum leverage ratio of 5.0x and, accordingly, the Company began making the scheduled amortization payments on the Notes. In 2015 and up until the 2015 Recapitalization, the Company met the maximum leverage ratios of less than 4.5x and accordingly, did not make previously scheduled debt amortization payments in accordance with the debt agreements. Subsequent to the 2015 Recapitalization, the Company’s leverage ratios exceeded 4.5x and, accordingly, the Company began making the scheduled amortization payments as well as the required catch-up Consolidated Long-Term Debt At December 31, 2017 and January 1, 2017, consolidated long-term debt consisted of the following (in thousands): 2017 2016 5.216% Class A-2 $ — $ 916,650 3.484% Class A-2-I 492,500 495,000 4.474% Class A-2-II 788,000 792,000 3.082% Class A-2-II 598,500 — 4.118% Class A-2-III 997,500 — Floating Rate Class A-2-I 299,250 — 2017 Variable Funding Notes — — 2015 Variable Funding Notes — — Capital lease obligations 5,437 5,730 Debt issuance costs, net of accumulated amortization of $6.8 million in 2017 and $21.1 million in 2016 (27,373 ) (21,503 ) Total debt 3,153,814 2,187,877 Less – current portion 32,324 38,887 Consolidated long-term debt, net of debt issuance costs $ 3,121,490 $ 2,148,990 At December 31, 2017, maturities of long-term debt and capital lease obligations are as follows (in thousands): 2018 $ 32,324 2019 32,358 2020 509,896 2021 27,440 2022 880,238 Thereafter 1,698,931 $ 3,181,187 Fair Value Disclosures Management estimated the approximate fair values of the 2012 Fixed Rate Notes, 2015 Notes and 2017 Notes as follows (in thousands): December 31, 2017 January 1, 2017 Principal Fair Value Principal Fair Value 2012 Seven-Year Fixed Rate Notes $ — $ — $ 916,650 $ 932,233 2015 Five-Year Fixed Rate Notes 492,500 494,470 495,000 485,595 2015 Ten-Year 788,000 821,884 792,000 765,864 2017 Five-Year Fixed Rate Notes 598,500 592,515 — — 2017 Ten-Year 997,500 1,023,435 — — 2017 Five-Year Floating Rate Notes 299,250 300,746 — — The Notes are classified as a Level 2 measurement (Note 3), as the Company estimated the fair value amount by using available market information. The Company obtained broker quotes from two separate brokerage firms that are knowledgeable about the Company’s Notes and, at times, trade these notes. Further, the Company performs its own internal analysis based on the information it gathers from public markets, including information on notes that are similar to that of the Company. However, considerable judgment is required in interpreting market data to develop estimates of fair value. Accordingly, the fair value estimates presented herein 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 calculated above. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | (5) COMMITMENTS AND CONTINGENCIES Lease Commitments As of December 31, 2017, the future minimum rental commitments for all non-cancelable Operating Capital Leases Leases Total 2018 $ 45,064 $ 826 $ 45,890 2019 40,265 828 41,093 2020 35,124 831 35,955 2021 31,298 833 32,131 2022 26,668 836 27,504 Thereafter 58,982 4,343 63,325 Total future minimum rental commitments $ 237,401 8,497 $ 245,898 Less – amounts representing interest (3,060 ) Total principal payable on capital leases $ 5,437 Future minimum rental commitments for non-cancelable Legal Proceedings and Related Matters The Company is a party to lawsuits, revenue agent reviews by taxing authorities and legal proceedings, of which the majority involve workers’ compensation, employment practices liability, general liability and automobile and franchisee claims arising in the ordinary course of business. The Company records legal fees associated with loss contingencies when they are probable and reasonably estimable. Litigation is subject to many uncertainties, and the outcome of individual litigated matters is not predictable with assurance. These matters referenced above could be decided unfavorably to us and could require us to pay damages or make other expenditures in amounts or a range of amounts that cannot be estimated with accuracy. In management’s opinion, these matters, individually and in the aggregate, should not have a significant adverse effect on the financial condition of the Company, and the established accruals adequately provide for the estimated resolution of such claims. 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. The Company continues to deny liability in this matter. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | (6) INCOME TAXES Income before provision for income taxes in 2017, 2016 and 2015 consists of the following (in thousands): 2017 2016 2015 Domestic $ 386,989 $ 334,892 $ 298,055 Foreign 13,164 9,766 8,160 $ 400,153 $ 344,658 $ 306,215 The differences between the United States Federal statutory income tax provision (using the statutory rate of 35%) and the Company’s consolidated provision for income taxes for 2017, 2016 and 2015 are summarized as follows (in thousands): 2017 2016 2015 Federal income tax provision based on the statutory rate $ 140,054 $ 120,630 $ 107,175 State and local income taxes, net of related Federal income taxes 11,520 9,787 8,589 Non-resident 20,210 17,275 15,750 Foreign tax and other tax credits (23,324 ) (20,049 ) (18,345 ) Excess tax benefits from equity-based compensation (27,227 ) — — Non-deductible 1,794 1,579 1,180 Unrecognized tax provision (benefit), net of related Federal income taxes (173 ) (98 ) 110 Other (606 ) 856 (1,033 ) $ 122,248 $ 129,980 $ 113,426 The Company adopted ASU 2016-09 2016-09 2016-09. The components of the 2017, 2016 and 2015 consolidated provision for income taxes are as follows (in thousands): 2017 2016 2015 Provision for Federal income taxes Current provision $ 81,747 $ 100,673 $ 84,071 Deferred provision (benefit) 6,732 (3,096 ) 862 Total provision for Federal income taxes 88,479 97,577 84,933 Provision for state and local income taxes Current provision 14,131 15,091 11,892 Deferred provision (benefit) (572 ) 37 851 Total provision for state and local income taxes 13,559 15,128 12,743 Provision for non-resident 20,210 17,275 15,750 $ 122,248 $ 129,980 $ 113,426 As of December 31, 2017 and January 1, 2017, the significant components of net deferred income taxes are as follows (in thousands): 2017 2016 Deferred Federal income tax assets Insurance reserves $ 8,290 $ 11,202 Equity compensation 7,724 11,978 Other accruals and reserves 7,187 18,741 Bad debt reserves 309 1,005 Other 3,164 5,732 Total deferred Federal income tax assets 26,674 48,658 Deferred Federal income tax liabilities Depreciation, amortization and asset basis differences 4,823 6,352 Capitalized software 18,522 25,869 Gain on debt extinguishments 2,722 9,073 Total deferred Federal income tax liabilities 26,067 41,294 Net deferred Federal income tax asset 607 7,364 Net deferred state and local income tax asset 2,143 1,571 Net deferred income taxes $ 2,750 $ 8,935 Realization of the Company’s deferred tax assets is dependent upon many factors, including, but not limited to, the Company’s ability to generate sufficient taxable income. Although realization of the Company’s net deferred tax assets is not assured, management believes it is more likely than not that the net deferred tax assets will be realized. On an ongoing basis, management will assess whether it remains more likely than not that the net deferred tax assets will be realized. For financial reporting purposes, the Company’s investment in foreign subsidiaries does not exceed its tax basis. Therefore, no deferred income taxes have been provided. The Company recognizes the financial statement benefit of a tax position if it is more likely than not that the position is sustainable, based solely on its technical merits and consideration of the relevant taxing authority’s widely understood administrative practices and precedents. For tax positions meeting the “more likely than not” At December 31, 2017, the amount of unrecognized tax benefits was $1.8 million of which, if ultimately recognized, $1.5 million would be recognized as an income tax benefit and reduce the Company’s effective tax rate. At December 31, 2017, the Company had less than $0.1 million of accrued interest and no accrued penalties. At January 1, 2017, the amount of unrecognized tax benefits was $2.0 million of which, if ultimately recognized, $1.6 million would be recognized as an income tax benefit and reduce the Company’s effective tax rate. At January 1, 2017, the Company had less than $0.1 million of accrued interest and no accrued penalties. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Balance as of December 28, 2014 $ 2,939 Additions for tax positions of current year 233 Additions for tax positions of prior years 171 Reductions in tax positions from prior years for: Changes in prior year tax positions (100 ) Settlements during the period (27 ) Lapses of applicable statute of limitations (1,101 ) Balance as of January 3, 2016 2,115 Additions for tax positions of current year 209 Reductions in tax positions from prior years for: Changes in prior year tax positions (33 ) Lapses of applicable statute of limitations (337 ) Balance as of January 1, 2017 1,954 Additions for tax positions of current year 224 Additions for tax positions of prior years 42 Reductions in tax positions from prior years for: Changes in prior year tax positions (10 ) Lapses of applicable statute of limitations (373 ) Balance as of December 31, 2017 $ 1,837 The Company continues to be under examination by certain states. The Company’s Federal statute of limitation has expired for years prior to 2014 and the relevant state and foreign statutes vary. The Company expects the current ongoing examinations to be concluded in the next twelve months and does not expect the assessment of any significant additional amounts in excess of amounts reserved. Tax Cuts and Jobs Act On December 22, 2017, the Tax Cuts and Jobs Act (the “2017 Tax Act”) was enacted. The 2017 Tax Act includes many changes to existing U.S. tax laws that impact the Company, most notably a reduction of the U.S. corporate income tax rate from 35 percent to 21 percent for tax years beginning after December 31, 2017. The Company recognized the income tax effects of the 2017 Tax Act in its 2017 financial statements in accordance with Staff Accounting Bulletin No. 118, which provides SEC staff guidance for the application of ASC Topic 740, Income Taxes The remeasurement of the deferred tax assets and liabilities was not material to our 2017 financial statements. However, the remeasured amounts incorporate assumptions made based upon the Company’s current interpretation of the 2017 Tax Act, mainly related to the deductibility of certain officers’ compensation, and may change as the Company receives additional clarification and implementation guidance. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFITS | (7) EMPLOYEE BENEFITS The Company has a retirement savings plan which qualifies under Internal Revenue Code Section 401(k). All employees of the Company who have completed 1,000 hours of service and are at least 21 years of age are eligible to participate in the plan. Effective January 1, 2018, employees of the Company who have completed 1,000 hours of service and are at least 18 years of age are eligible to participate in the plan. The plan requires the Company to match 100% of the first 3% of each employee’s elective deferrals and 50% of the next 2% of each employee’s elective deferrals. During 2017, 2016 and 2015, the Company’s matching contributions were made in the form of cash and vested immediately. The expenses incurred for Company contributions to the plan were approximately $6.1 million, $5.2 million and $4.6 million in 2017, 2016 and 2015, respectively. The Company has established a non-qualified The Company has an employee stock purchase discount plan (the “ESPDP”). Under the ESPDP, eligible employees may deduct up to 15% of their eligible wages to purchase common stock at 85% of the market price of the stock at the purchase date. The ESPDP requires employees to hold their purchased common stock for at least one year. The Company purchases common stock on the open market for the ESPDP at the current market price. There were 21,744 shares, 23,317 shares and 23,994 shares of common stock in 2017, 2016 and 2015, respectively, purchased on the open market for participating employees at a weighted-average price of $188.57 in 2017, $131.74 in 2016 and $105.16 in 2015. The expenses incurred under the ESPDP were approximately $0.7 million, $0.5 million and $0.4 million in 2017, 2016 and 2015, respectively. |
FINANCIAL INSTRUMENTS WITH OFF-
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | 12 Months Ended |
Dec. 31, 2017 | |
Investments, All Other Investments [Abstract] | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | (8) FINANCIAL INSTRUMENTS WITH OFF-BALANCE The Company is a party to stand-by stand-by on-balance |
EQUITY INCENTIVE PLANS
EQUITY INCENTIVE PLANS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
EQUITY INCENTIVE PLANS | (9) EQUITY INCENTIVE PLANS The cost of all employee stock options, as well as other equity-based compensation arrangements, is reflected in the consolidated statements of income based on the estimated fair value of the awards and is amortized over the requisite service period of each award. The Company’s current equity incentive plan benefits certain of the Company’s employees and directors and is named the Domino’s Pizza, Inc. 2004 Equity Incentive Plan (the “2004 Equity Incentive Plan”). As of December 31, 2017, the maximum number of shares that may be granted under the 2004 Equity Incentive Plan is 15,600,000 shares of voting common stock of which 2,845,095 shares were authorized for grant but have not been granted. The Company recorded total non-cash non-cash non-cash The Company adopted ASU 2016-09 2016-09. Stock Options As of December 31, 2017, the number of stock options granted and outstanding under the 2004 Equity Incentive Plan was 2,238,114 options. Stock options granted under the 2004 Equity Incentive Plan and a predecessor plan prior to fiscal 2009 were generally granted with an exercise price equal to the market price at the date of the grant, expired ten years from the date of grant and vested over five years from the date of grant. Stock options granted in fiscal 2009 through fiscal 2012 were granted with an exercise price equal to the market price at the date of the grant, expire ten years from the date of grant and generally vest over three years from the date of grant. Stock options granted in fiscal 2013 through fiscal 2017 were granted with an exercise price equal to the market price at the date of the grant, expire ten years from the date of grant and generally vest over four years from the date of grant. Additionally, all stock options granted become fully exercisable upon vesting. These awards also contain provisions for accelerated vesting upon the retirement of holders that have achieved specific service and age requirements. Stock option activity related to the 2004 Equity Incentive Plan is summarized as follows: Common Stock Options Weighted Weighted Average Average Aggregate Exercise Remaining Intrinsic Outstanding Price Life Value (Years) (In thousands) Stock options at December 28, 2014 3,590,115 $ 22.47 Stock options granted 193,970 111.63 Stock options cancelled (32,176 ) 73.55 Stock options exercised (428,433 ) 11.70 Stock options at January 3, 2016 3,323,476 $ 28.57 Stock options granted 233,280 129.42 Stock options cancelled (12,798 ) 104.23 Stock options exercised (1,045,648 ) 14.38 Stock options at January 1, 2017 2,498,310 $ 43.54 Stock options granted 126,720 201.19 Stock options cancelled (28,991 ) 101.97 Stock options exercised (357,925 ) 17.05 Stock options at December 31, 2017 2,238,114 $ 55.94 4.7 $ 299,518 Exercisable at December 31, 2017 1,827,568 $ 36.61 3.9 $ 278,438 The total intrinsic value of stock options exercised was approximately $62.0 million, $128.0 million and $41.7 million in 2017, 2016 and 2015, respectively. Cash received from the exercise of stock options was approximately $6.1 million, $15.2 million and $4.8 million in 2017, 2016 and 2015, respectively. The tax benefit realized from stock options exercised was approximately $23.0 million, $46.1 million and $14.7 million in 2017, 2016 and 2015, respectively. The Company recorded total non-cash non-cash Management estimated the fair value of each option grant made during 2017, 2016 and 2015 as of the date of the grant using the Black-Scholes option pricing method. Weighted average assumptions are presented in the following table. The risk-free interest rate is based on the estimated effective life, and is estimated based on U.S. Treasury Bond rates as of the grant date. The expected life is based on several factors, including, among other things, the vesting term and contractual term as well as historical experience. The expected volatility is based principally on the historical volatility of the Company’s share price. 2017 2016 2015 Risk-free interest rate 2.0 % 1.3 % 1.7 % Expected life (years) 5.5 5.5 5.5 Expected volatility 25.8 % 26.0 % 28.4 % Expected dividend yield 0.9 % 1.2 % 1.1 % Weighted average fair value per stock option $ 49.57 $ 29.59 $ 28.45 Option valuation models require the input of highly subjective assumptions. In management’s opinion, existing models do not necessarily provide a reliable single measure of the fair value of the Company’s stock options, as changes in subjective input assumptions can significantly affect the fair value estimate. Other Equity-Based Compensation Arrangements The Company granted 4,410 shares, 6,920 shares and 8,350 shares of restricted stock in 2017, 2016 and 2015, respectively, to members of its Board of Directors. These grants generally vest one year from the date of the grant and have a fair value equal to the market price of the Company’s stock on the grant date. These awards also contain provisions for accelerated vesting upon the retirement of holders that have achieved specific service and age requirements. The Company recorded total non-cash non-cash The Company granted 67,840 shares, 90,730 shares and 88,250 shares of performance-based restricted stock in 2017, 2016 and 2015, respectively, to certain employees of the Company. These performance-based restricted stock awards are separated into four tranches and have time-based and performance-based vesting conditions with the last tranche vesting four years from the issuance date. These awards also contain provisions for accelerated vesting upon the retirement of holders that have achieved specific service and age requirements. These awards are considered granted for accounting purposes when the performance target is set, which is generally in the fourth quarter of each year. The Company recorded total non-cash non-cash Restricted stock and performance-based restricted stock activity related to the 2004 Equity Incentive Plan is summarized as follows: Weighted Average Grant Date Shares Fair Value Nonvested at January 1, 2017 276,220 $ 97.48 Shares granted (1) 72,250 205.21 Shares cancelled (16,109 ) 115.71 Shares vested (137,757 ) 80.55 Nonvested at December 31, 2017 194,604 $ 147.94 (1) The weighted average grant date fair value for performance-based restricted shares granted was calculated based on the market price on the grant dates. Certain tranches will ultimately be valued when the performance condition is established for each tranche, which generally occurs in the fourth quarter of each fiscal year. |
CAPITAL STRUCTURE
CAPITAL STRUCTURE | 12 Months Ended |
Dec. 31, 2017 | |
Text Block [Abstract] | |
CAPITAL STRUCTURE | (10) CAPITAL STRUCTURE The Company has a Board of Directors-approved open market share repurchase program of the Company’s common stock. The open market share repurchase program has historically been funded by excess cash flow. On July 27, 2017, the Company’s Board of Directors authorized a new share repurchase program to repurchase up to $1.25 billion of the Company’s common stock. This repurchase program replaced the remaining availability under the Company’s previous $250.0 million share repurchase program. On August 2, 2017, the Company entered into the $1.0 billion 2017 ASR Agreement with a counterparty. Pursuant to the terms of the 2017 ASR Agreement, on August 3, 2017, as part of its new $1.25 billion share repurchase program, the Company used a portion of the proceeds from the 2017 Recapitalization to pay the counterparty $1.0 billion in cash to repurchase shares of the Company’s common stock. Final settlement of the 2017 ASR Agreement occurred on October 11, 2017. In connection with the 2017 ASR Agreement, the Company received and retired a total of 5,218,670 shares of its common stock at an average price of $191.62. On October 23, 2015, the Company’s Board of Directors authorized a share repurchase program to repurchase up to $800.0 million of the Company’s common stock. On October 27, 2015, the Company entered into the $600.0 million 2015 ASR Agreement with a counterparty. Pursuant to the terms of the 2015 ASR Agreement, on October 30, 2015, as part of its $800.0 million share repurchase authorization, the Company used a portion of the proceeds from the 2015 Recapitalization to pay the counterparty $600.0 million in cash and received 4,858,994 shares of the Company’s common stock. 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 $600.0 million accelerated share repurchase program. In connection with the 2015 ASR Agreement, the Company received and retired a total of 5,315,930 shares of its common stock at an average price of $112.87. During 2017, 2016 and 2015, the Company repurchased 5,576,249 shares, 2,816,716 shares (including the 456,936 shares of its common stock received in the first quarter of 2016 in connection with the settlement of the 2015 ASR Agreement), and 6,152,918 shares of common stock for approximately $1.06 billion, $300.3 million and $738.6 million, respectively. At December 31, 2017, the Company had $198.5 million remaining under the $1.25 billion authorization. The Company’s policy is to recognize the difference between the purchase price and par value of the common stock in additional paid-in paid-in As of December 31, 2017, authorized common stock consists of 160,000,000 voting shares and 10,000,000 non-voting 2017 2016 Voting 42,881,905 48,083,721 Non-Voting 16,424 16,422 Total Common Stock 42,898,329 48,100,143 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | (11) SEGMENT INFORMATION The Company has three reportable segments: (i) Domestic Stores; (ii) Supply Chain; and (iii) International Franchise. The Company’s operations are organized by management on the combined basis of line of business and geography. The Domestic Stores segment includes operations with respect to all franchised and Company-owned stores throughout the contiguous United States. The Supply Chain segment primarily includes the distribution of food, equipment and supplies to stores from the Company’s supply chain center operations in the United States and Canada. The International Franchise segment primarily includes operations related to the Company’s franchising business in foreign and non-contiguous The accounting policies of the reportable segments are the same as those described in Note 1. The Company evaluates the performance of its segments and allocates resources to them based on earnings before interest, taxes, depreciation, amortization and other, referred to as Segment Income. The tables below summarize the financial information concerning the Company’s reportable segments for fiscal 2017, 2016 and 2015. Intersegment Revenues are comprised of sales of food, equipment and supplies from the Supply Chain segment to the Company-owned stores in the Domestic Stores segment. Intersegment sales prices are market based. The “Other” column as it relates to Segment Income and income from operations information below primarily includes corporate administrative costs. The “Other” column as it relates to capital expenditures primarily includes capitalized software, certain equipment and leasehold improvements. Tabular amounts presented below are in thousands. Domestic International Intersegment Stores Supply Chain Franchise Revenues__ Other Total Revenues- 2017 $ 842,233 $ 1,874,943 $ 206,708 $ (135,905 ) — $ 2,787,979 2016 751,284 1,669,000 176,999 (124,655 ) — 2,472,628 2015 669,724 1,495,308 163,643 (112,147 ) — 2,216,528 Segment Income- 2017 $ 306,406 $ 163,077 $ 161,263 N/A $ (46,958 ) $ 583,788 2016 271,794 144,130 138,487 N/A (42,802 ) 511,609 2015 240,942 127,155 130,650 N/A (42,075 ) 456,672 Income from Operations- 2017 $ 298,852 $ 151,622 $ 161,066 N/A $ (90,308 ) $ 521,232 2016 261,826 133,745 138,306 N/A (79,835 ) 454,042 2015 233,248 117,185 130,601 N/A (75,595 ) 405,439 Capital Expenditures- 2017 $ 20,579 $ 34,123 $ 28 N/A $ 35,527 $ 90,257 2016 18,225 11,527 642 N/A 31,143 61,537 2015 25,120 9,928 — N/A 27,317 62,365 The following table reconciles total Segment Income to income before provision for income taxes: 2017 2016 2015 Total Segment Income $ 583,788 $ 511,609 $ 456,672 Depreciation and amortization (44,369 ) (38,140 ) (32,434 ) Gains (losses) on sale/disposal of assets 3,148 (863 ) (316 ) Non-cash (20,713 ) (18,564 ) (17,623 ) Recapitalization-related expenses (622 ) — (860 ) Income from operations 521,232 454,042 405,439 Interest income 1,462 685 313 Interest expense (122,541 ) (110,069 ) (99,537 ) Income before provision for income taxes $ 400,153 $ 344,658 $ 306,215 The following table summarizes the Company’s identifiable asset information as of December 31, 2017 and January 1, 2017: 2017 2016 Domestic Stores $ 96,771 $ 89,220 Domestic supply chain 206,059 172,210 Total domestic assets 302,830 261,430 International Franchise 19,728 17,436 International supply chain 24,925 19,368 Total international assets 44,653 36,804 Unallocated 489,270 418,061 Total consolidated assets $ 836,753 $ 716,295 Unallocated assets primarily include cash and cash equivalents, restricted cash and cash equivalents, advertising fund assets, investments in marketable securities, certain long-lived assets and deferred income taxes. The following table summarizes the Company’s goodwill balance as of December 31, 2017 and January 1, 2017: 2017 2016 Domestic Stores $ 14,356 $ 14,991 Supply Chain 1,067 1,067 Consolidated goodwill $ 15,423 $ 16,058 |
SALE AND CLOSURE OF COMPANY-OWN
SALE AND CLOSURE OF COMPANY-OWNED STORES | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
SALE AND CLOSURE OF COMPANY-OWNED STORES | (12) SALE AND CLOSURE OF COMPANY-OWNED STORES During 2017, the Company sold 17 Company-owned stores to franchisees for proceeds of $6.8 million. In connection with the sale of the stores, the Company recorded a $4.0 million pre-tax The Company closed one Company-owned store in 2016. In connection with the closure, the Company recorded a reduction of goodwill of less than $0.1 million in general and administrative expense in the Company’s consolidated statements of income. During 2015, the Company sold four Company-owned stores to franchisees for proceeds of $1.2 million. In connection with the sale of the four stores, the Company recorded a $0.7 million pre-tax |
PERIODIC FINANCIAL DATA (UNAUDI
PERIODIC FINANCIAL DATA (UNAUDITED; IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
PERIODIC FINANCIAL DATA (UNAUDITED; IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | (13) PERIODIC FINANCIAL DATA (UNAUDITED; IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) The Company’s convention with respect to reporting periodic financial data is such that each of the first three fiscal quarters consists of 12 weeks while the last fiscal quarter consists of 16 weeks or 17 weeks. The fourth quarters of 2017 and 2016 are comprised of 16 weeks. For the Fiscal For the Fiscal Quarter Ended Year Ended March 26, June 18, September 10, December 31, December 31, 2017 2017 2017 2017 2017 Total revenues $ 624,217 $ 628,611 $ 643,642 $ 891,509 $ 2,787,979 Operating margin 193,816 192,845 198,478 280,852 865,991 Income before provision for income taxes 90,514 88,532 84,551 136,556 400,153 Net income 62,469 65,741 56,368 93,327 277,905 Earnings per common share – basic (1) $ 1.31 $ 1.37 $ 1.22 $ 2.17 $ 6.05 Earnings per common share – diluted (1) $ 1.26 $ 1.32 $ 1.18 $ 2.09 $ 5.83 Common stock dividends declared per share $ 0.46 $ 0.46 $ 0.46 $ 0.46 $ 1.84 For the Fiscal For the Fiscal Quarter Ended Year Ended March 27, June 19, September 11, January 1, January 1, 2016 2016 2016 2017 2017 Total revenues $ 539,175 $ 547,341 $ 566,677 $ 819,435 $ 2,472,628 Operating margin 167,216 171,838 173,903 254,734 767,691 Income before provision for income taxes 72,842 78,692 75,814 117,310 344,658 Net income 45,451 49,261 47,232 72,734 214,678 Earnings per common share – basic $ 0.91 $ 1.00 $ 0.98 $ 1.52 $ 4.41 Earnings per common share – diluted (1) $ 0.89 $ 0.98 $ 0.96 $ 1.48 $ 4.30 Common stock dividends declared per share $ 0.38 $ 0.38 $ 0.38 $ 0.38 $ 1.52 (1) Earnings per share figures may not sum to the total due to the rounding of each individual calculation. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | (14) SUBSEQUENT EVENTS On February 14, 2018, the Company’s Board of Directors declared a quarterly dividend of $0.55 per common share payable on March 30, 2018 to shareholders of record at the close of business on March 15, 2018. The Board of Directors also authorized a new share repurchase program to repurchase up to $750.0 million of the Company’s common stock. This repurchase program replaces the remaining availability of approximately $198.5 million under the Company’s previously approved $1.25 billion share repurchase program that was authorized by the Board on July 27, 2017. |
SCHEDULE I - CONDENSED FINANCIA
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT | SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT DOMINO’S PIZZA, INC. PARENT COMPANY CONDENSED BALANCE SHEETS (In thousands, except share and per share amounts) December 31, January 1, 2017 2017 ASSETS ASSETS: Cash $ 6 $ 6 Total assets $ 6 $ 6 LIABILITIES AND STOCKHOLDERS’ DEFICIT LIABILITIES: Equity in net deficit of subsidiaries $ 2,735,384 $ 1,883,143 Due to subsidiary 6 6 Total liabilities 2,735,390 1,883,149 STOCKHOLDERS’ DEFICIT: Common stock, par value $0.01 per share; 170,000,000 shares authorized; 42,898,329 in 2017 and 48,100,143 in 2016 issued and outstanding 429 481 Preferred stock, par value $0.01 per share; 5,000,000 shares authorized, none issued — — Additional paid-in 5,654 1,006 Retained deficit (2,739,437 ) (1,881,520 ) Accumulated other comprehensive loss (2,030) (3,110) Total stockholders’ deficit (2,735,384) (1,883,143) Total liabilities and stockholders’ deficit $ 6 $ 6 See accompanying notes to the Schedule I. DOMINO’S PIZZA, INC. PARENT COMPANY CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (In thousands, except per share amounts) For the Years Ended December 31, January 1, January 3, REVENUES $ — $ — $ — Total revenues — — — OPERATING EXPENSES — — — Total operating expenses — — — INCOME FROM OPERATIONS — — — Equity earnings in subsidiaries 277,905 214,678 192,789 INCOME BEFORE PROVISION FOR INCOME TAXES 277,905 214,678 192,789 PROVISION FOR INCOME TAXES — — — NET INCOME $ 277,905 $ 214,678 $ 192,789 COMPREHENSIVE INCOME $ 278,985 $ 215,116 $ 191,902 EARNINGS PER SHARE: Common Stock – basic $ 6.05 $ 4.41 $ 3.58 Common Stock – diluted $ 5.83 $ 4.30 $ 3.47 See accompanying notes to the Schedule I. DOMINO’S PIZZA, INC. PARENT COMPANY CONDENSED STATEMENTS OF CASH FLOWS (In thousands) For the Years Ended December 31, January 1, January 3, 2017 2017 2016 CASH FLOWS FROM OPERATING ACTIVITIES: Net cash provided by operating activities $ 299,576 $ 281,731 $ 226,912 CASH FLOWS FROM INVESTING ACTIVITIES: Dividends from subsidiaries 852,325 82,856 594,591 Net cash provided by investing activities 852,325 82,856 594,591 CASH FLOWS FROM FINANCING ACTIVITIES: Payments of common stock dividends (84,298 ) (73,925 ) (80,329 ) Purchase of common stock (1,064,253 ) (300,250 ) (738,557 ) Other (3,350 ) 9,588 (2,617 ) Net cash used in financing activities (1,151,901 ) (364,587 ) (821,503 ) CHANGE IN CASH AND CASH EQUIVALENTS — — — CASH AND CASH EQUIVALENTS, AT BEGINNING OF PERIOD 6 6 6 CASH AND CASH EQUIVALENTS, AT END OF PERIOD $ 6 $ 6 $ 6 See accompanying notes to the Schedule I. DOMINO’S PIZZA, INC. NOTES TO PARENT COMPANY FINANCIAL STATEMENTS (1) INTRODUCTION AND BASIS OF PRESENTATION Domino’s Pizza, Inc., on a stand-alone basis, (the “Parent Company”) has accounted for majority-owned subsidiaries using the equity method of accounting. The accompanying condensed financial statements of the Parent Company should be read in conjunction with the consolidated financial statements of Domino’s Pizza, Inc. and its subsidiaries (the “Company”) and the notes thereto included in Item 8 of this Form 10-K. 4-08(e) S-X. Use of Estimates The use of estimates is inherent in the preparation of financial statements in accordance with generally accepted accounting principles. Actual results could differ from those estimates. Recently Adopted Accounting Standards In March 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting 2016-09). 2016-09 As a result, excess tax benefits or deficiencies from equity-based compensation activity are reflected in the parent company condensed statements of income and comprehensive income as a component of equity earnings in subsidiaries. The Company also elected to account for forfeitures as they occur, rather than to use an estimate of expected forfeitures for financial statement reporting purposes. The adoption of ASU 2016-09 (2) SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION During 2017, 2016 and 2015, the Parent Company received dividends from its subsidiaries primarily consisting of amounts received to repurchase common stock in connection with the Company’s 2017 and 2015 recapitalization transactions. See Note 4 to the Company’s consolidated financial statements as filed in this Form 10-K |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS Domino’s Pizza, Inc. and Subsidiaries (in thousands) Balance of Year Provision Additions/ Deductions from Reserves * Translation Balance End of Year Allowance for doubtful accounts receivable: 2017 $ 2,342 $ (88 ) $ (830 ) $ — $ 1,424 2016 2,662 (51 ) (269 ) — 2,342 2015 3,361 (582 ) (109 ) (8 ) 2,662 * Consists primarily of write-offs, recoveries of bad debt and certain reclassifications. SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrants have duly caused this annual report to be signed on their behalf by the undersigned, thereunto duly authorized. DOMINO’S PIZZA, INC. /s/ Jeffrey D. Lawrence Jeffrey D. Lawrence Chief Financial Officer February 20, 2018 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrants and in the capacities and on the dates indicated. /s/ J. Patrick Doyle President, Chief Executive Officer and Director (Principal Executive Officer) J. Patrick Doyle February 20, 2018 /s/ Jeffrey D. Lawrence Chief Financial Officer Jeffrey D. Lawrence (Principal Financial and Accounting Officer) February 20, 2018 /s/ David A. Brandon Chairman of the Board of Directors David A. Brandon February 20, 2018 /s/ C. Andrew Ballard Director C. Andrew Ballard February 20, 2018 /s/ Andrew B. Balson Director Andrew B. Balson February 20, 2018 /s/ Diana F. Cantor Director Diana F. Cantor February 20, 2018 /s/ Richard L. Federico Director Richard L. Federico February 20, 2018 /s/ James A. Goldman Director James A. Goldman February 20, 2018 |
DESCRIPTION OF BUSINESS AND S24
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Domino’s Pizza, Inc. (“DPI”), a Delaware corporation, conducts its operations and derives substantially all of its operating income and cash flows through its wholly-owned subsidiary, Domino’s, Inc. (“Domino’s”) and Domino’s wholly-owned subsidiary, Domino’s Pizza LLC (“DPLLC”). DPI and its wholly-owned subsidiaries (collectively, “the Company”) are primarily engaged in the following business activities: (i) retail sales of food through Company-owned Domino’s Pizza stores; (ii) sales of food, equipment and supplies to Company-owned and franchised Domino’s Pizza stores through Company-owned supply chain centers; and (iii) receipt of royalties and fees from domestic and international Domino’s Pizza franchisees. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of DPI and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. |
Fiscal Year | Fiscal Year The Company’s fiscal year ends on the Sunday closest to December 31. The 2017 fiscal year ended on December 31, 2017, the 2016 fiscal year ended on January 1, 2017 and the 2015 fiscal year ended on January 3, 2016. The 2017 and 2016 fiscal years consisted of fifty-two |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents consist of highly liquid investments with original maturities of three months or less at the date of purchase. These investments are carried at cost, which approximates fair value. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents Restricted cash and cash equivalents at December 31, 2017 includes $122.9 million of cash and cash equivalents held for future principal and interest payments, $32.1 million of cash equivalents held in a three-month interest reserve, $36.7 million of cash held as collateral for outstanding letters of credit and $0.1 million of other restricted cash. Restricted cash and cash equivalents at January 1, 2017 includes $99.8 million of cash and cash equivalents held for future principal and interest payments and $26.7 million of cash equivalents held in a three-month interest reserve. |
Inventories | Inventories Inventories are valued at the lower of cost (on a first-in, first-out 2017 2016 Food $ 36,645 $ 36,644 Equipment and supplies 3,316 3,537 Inventories $ 39,961 $ 40,181 |
Other Assets | Other Assets Current and long-term other assets primarily include prepaid expenses such as insurance, rent and taxes, deposits, notes receivable, as well as covenants not-to-compete |
Property, Plant and Equipment | Property, Plant and Equipment Additions to property, plant and equipment are recorded at cost. Repair and maintenance costs are expensed as incurred.Depreciation and amortization expense is provided using the straight-line method over the estimated useful lives of the related assets. Estimated useful lives, other than the estimated useful life of the capital lease assets as described below, are generally as follows (in years): Buildings 20 Leasehold and other improvements 7 – 15 Equipment 3 – 15 Included in land and buildings as of December 31, 2017 and January 1, 2017 are capital lease assets of approximately $4.3 million and $4.7 million, which are net of $6.2 million and $5.8 million of accumulated amortization, respectively, related to the lease of a supply chain center building and the lease of a Company-owned store. The capital lease assets are being amortized using the straight-line method over the respective lease terms. Depreciation and amortization expense on property, plant and equipment was approximately $29.6 million, $27.3 million and $24.1 million in 2017, 2016 and 2015, respectively. |
Impairments of Long-Lived Assets | Impairments of Long-Lived Assets The Company evaluates the potential impairment of long-lived assets at least annually based on various analyses including the projection of undiscounted cash flows and whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. For Company-owned stores, the Company performs this evaluation on an operating market basis, which the Company has determined to be the lowest level for which identifiable cash flows are largely independent of other cash flows. If the carrying amount of a long-lived asset exceeds the amount of the expected future undiscounted cash flows of that asset, the Company estimates the fair value of the assets. If the carrying amount of the asset exceeds the estimated fair value of the asset, an impairment loss is recognized and the asset is written down to its estimated fair value. The Company did not record any impairment losses on long-lived assets in 2017, 2016 or 2015. |
Investments in Marketable Securities | Investments in Marketable Securities Investments in marketable securities consist of investments in various mutual funds made by eligible individuals as part of the Company’s deferred compensation plan (Note 7). These investments are stated at aggregate fair value, are restricted and have been placed in a rabbi trust whereby the amounts are irrevocably set aside to fund the Company’s obligations under the deferred compensation plan. The Company classifies and accounts for these investments in marketable securities as trading securities. |
Debt Issuance Costs | Debt Issuance Costs Debt issuance costs are recorded as a reduction to the Company’s debt balance and primarily include the expenses incurred by the Company as part of the 2015 and 2017 Recapitalizations (Note 4). Amortization is provided on a straight-line basis (which is materially consistent with the effective interest method) over the expected term of the respective debt instrument to which the costs relate and is included in interest expense. In connection with the 2012 Recapitalization, the Company recorded approximately $39.9 million of debt issuance costs. In connection with the 2015 Recapitalization, the Company expensed approximately $6.9 million of these costs in connection with the extinguishment of $551.3 million of the 2012 Fixed Rate Notes (Note 4). In connection with the 2017 Recapitalization, the Company expensed the approximately $5.5 million in remaining unamortized debt issuance costs associated with the extinguishment of the remaining $910.2 million of the 2012 Fixed Rate Notes. Additionally, in connection with the 2015 and 2017 Recapitalizations, the Company recorded $17.4 million and $16.8 million of debt issuance costs, respectively, which are being amortized into interest expense over the five and ten-year In connection with the aforementioned write-off |
Goodwill | Goodwill The Company’s goodwill amounts primarily relate to franchise store acquisitions and are not amortized. The Company performs its required impairment tests in the fourth quarter of each fiscal year and did not recognize any goodwill impairment charges in 2017, 2016 or 2015. |
Capitalized Software | Capitalized Software Capitalized software is recorded at cost and includes purchased, internally-developed and externally-developed software used in the Company’s operations. Amortization expense is provided using the straight-line method over the estimated useful lives of the software, which range from one to seven years. Capitalized software amortization expense was approximately $14.8 million, $10.8 million and $8.3 million in 2017, 2016 and 2015, respectively. As of December 31, 2017, scheduled amortization for the next five fiscal years was approximately $14.3 million, $9.4 million, $5.3 million, $3.3 million and $1.6 million for 2018, 2019, 2020, 2021 and 2022, respectively. |
Insurance Reserves | Insurance Reserves The Company has retention programs for workers’ compensation, general liability and owned and non-owned non-owned non-owned Insurance reserves relating to our retention programs are based on undiscounted actuarial estimates. These estimates are based on historical information and on certain assumptions about future events. Changes in assumptions for such factors as medical costs and legal actions, as well as changes in actual experience, could cause these estimates to change in the near term. The Company receives estimates of outstanding insurance exposures from its independent actuary and differences between these estimated actuarial exposures and the Company’s recorded amounts are adjusted as appropriate. |
Other Accrued Liabilities | Other Accrued Liabilities Current and long-term other accrued liabilities primarily include accruals for income, sales, property and other taxes, legal reserves, store operating expenses, deferred rent expense, dividends payable and deferred compensation liabilities. |
Foreign Currency Translation | Foreign Currency Translation The Company’s foreign entities use their local currency as the functional currency. For these entities, the Company translates net assets into U.S. dollars at year end exchange rates, while income and expense accounts are translated at average annual exchange rates. Currency translation adjustments are included in accumulated other comprehensive income (loss) and foreign currency transaction gains and losses are included in determining net income. |
Revenue Recognition | Revenue Recognition Domestic Company-owned stores revenues are comprised of retail sales of food through Company-owned Domino’s Pizza stores located in the contiguous United States and are recognized when the items are delivered to or carried out by customers. Domestic franchise revenues are primarily comprised of royalties and fees from Domino’s Pizza franchisees with operations in the contiguous United States. Royalty revenues are recognized when the items are delivered to or carried out by franchise customers. Supply chain revenues are primarily comprised of sales of food, equipment and supplies to franchised Domino’s Pizza stores located in the United States and Canada. Revenues from the sales of food are recognized upon delivery of the food to franchisees, while revenues from the sales of equipment and supplies are generally recognized upon shipment of the related products to franchisees. International franchise revenues are primarily comprised of royalties and fees from Domino’s Pizza franchisees outside the contiguous United States. These revenues are recognized consistently with the policies applied for franchise revenues generated in the contiguous United States. |
Supply Chain Profit-Sharing Arrangements | Supply Chain Profit-Sharing Arrangements The Company enters into profit-sharing arrangements with domestic and Canadian stores that purchase all of their food from Supply Chain (Note 11). These profit-sharing arrangements generally offer Company-owned stores and participating franchisees with 50% (or a higher percentage in the case of Company-owned stores and certain franchisees who operate a larger number of stores) of their regional supply chain center’s pre-tax |
Advertising | Advertising Advertising costs are expensed as incurred. Advertising expense, which relates primarily to Company-owned stores, was approximately $39.8 million, $34.5 million and $32.0 million during 2017, 2016 and 2015, respectively. Domestic Stores (Note 11) are required to contribute a certain percentage of sales to the Domino’s National Advertising Fund Inc. (“DNAF”), a not-for-profit DNAF assets, consisting primarily of cash received from franchisees and accounts receivable from franchisees, can only be used for activities that promote the Domino’s Pizza brand. Accordingly, all assets held by the DNAF are considered restricted. |
Rent | Rent The Company leases certain equipment, vehicles, retail store and supply chain center locations and its corporate headquarters under operating leases with expiration dates through 2033. Rent expenses totaled approximately $57.9 million, $49.9 million and $46.1 million during 2017, 2016 and 2015, respectively. |
Common Stock Dividends | Common Stock Dividends The Company declared and paid dividends of approximately $84.2 million (or $1.84 per share) in 2017, approximately $74.0 million (or $1.52 per share) in 2016 and approximately $66.5 million (or $1.24 per share) in 2015. The Company also paid dividends of $13.8 million in 2015 related to a dividend declaration in 2014. |
Stock Options and Other Equity-Based Compensation Arrangements | Stock Options and Other Equity-Based Compensation Arrangements The cost of all of the Company’s stock options, as well as other equity-based compensation arrangements, is reflected in the financial statements based on the estimated fair value of the awards. |
Earnings Per Share | Earnings Per Share The Company discloses two calculations of earnings per share (“EPS”): basic EPS and diluted EPS. The numerator in calculating common stock basic and diluted EPS is consolidated net income. The denominator in calculating common stock basic EPS is the weighted average shares outstanding. The denominator in calculating common stock diluted EPS includes the additional dilutive effect of outstanding stock options, unvested restricted stock grants and unvested performance-based restricted stock grants. |
Supplemental Disclosures of Cash Flow Information | Supplemental Disclosures of Cash Flow Information The Company paid interest of approximately $107.4 million, $104.6 million and $80.8 million during 2017, 2016 and 2015, respectively. Cash paid for income taxes was approximately $122.6 million, $74.3 million and $80.1 million in 2017, 2016 and 2015, respectively. The Company had $4.0 million, $3.8 million and $0.8 million of non-cash non-cash |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Accounting Standards In March 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting 2016-09 As a result, excess tax benefits or deficiencies from equity-based compensation activity are reflected in the consolidated statements of income as a component of the provision for income taxes, whereas they previously were recognized in the consolidated statement of stockholders’ deficit. The Company also elected to account for forfeitures as they occur, rather than to use an estimate of expected forfeitures for financial statement reporting purposes. The adoption of ASU 2016-09 The Company adopted the cash flow presentation prospectively, and accordingly, excess tax benefits from equity-based compensation of $27.2 million in fiscal 2017 are presented as an operating activity, while $48.1 million and $17.8 million of excess tax benefits from equity-based compensation in fiscal 2016 and fiscal 2015, respectively, are presented as a financing activity. The presentation requirements for cash flows related to taxes paid for restricted stock upon vesting had no impact on our consolidated statements of cash flows for any of the periods presented because such cash flows have historically been presented as a financing activity. Accounting Standards Not Yet Adopted The Company has considered all new accounting pronouncements issued by the FASB and concluded the following accounting pronouncements may have a material impact on our consolidated financial statements, or represent accounting pronouncements for which the Company has not yet completed its assessment. In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) non-cash The Company has substantially completed its assessment of ASC 606, and the adoption of this guidance is not expected to have a material impact on its recognition of sales from Company-owned stores, ongoing royalty fees which are based on a percentage of franchise sales, revenues from its supply chain centers, development fees or technology fees. The Company has determined that the store opening fees received from international franchisees do not contain separate and distinct performance obligations from the franchise right and those upfront fees will therefore be recognized as revenue over the term of each respective franchise agreement. Currently, we recognize such fees as revenue when received. The Company does not expect this to have a material impact on its international franchise revenues. However, an adjustment to beginning retained earnings and a corresponding contract liability of approximately $15 million will be established on the date of adoption associated with the fees received through December 31, 2017 that would have been deferred and recognized over the term of each respective franchise agreement if the new guidance had been applied in the past. The Company has also determined that ASC 606 requires a gross presentation on the consolidated statement of income for franchisee contributions received by and related expenses of DNAF, our consolidated not-for-profit In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) 2016-02 2016-02 right-of-use In March 2016, the FASB issued ASU 2016-04, Liabilities – Extinguishment of Liabilities (Subtopic 405-20): 2016-04 Revenues from Contracts with Customers non-financial 2016-04 In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments 2016-13 2016-13 In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash 2016-18), 2016-18 In January 2017, the FASB issued ASU 2017-04 , Intangibles – Goodwill and Other (Topic 35): Simplifying the Test for Goodwill Impairment 2017-04. 2017-04 2017-04 |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
DESCRIPTION OF BUSINESS AND S25
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Inventories | Inventories at December 31, 2017 and January 1, 2017 are comprised of the following (in thousands): 2017 2016 Food $ 36,645 $ 36,644 Equipment and supplies 3,316 3,537 Inventories $ 39,961 $ 40,181 |
Estimated Useful Lives of Property, Plant And Equipment Excluding Capital Lease Asset | estimated useful life of the capital lease assets as described below, are generally as follows (in years): Buildings 20 Leasehold and other improvements 7 – 15 Equipment 3 – 15 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | The computation of basic and diluted earnings per common share is as follows (in thousands, except share and per share amounts): 2017 2016 2015 Net income available to common stockholders – basic and diluted $ 277,905 $ 214,678 $ 192,789 Weighted average number of common shares 45,954,659 48,647,167 53,828,609 Earnings per common share – basic $ 6.05 $ 4.41 $ 3.58 Diluted weighted average number of common shares 47,677,834 49,923,859 55,532,955 Earnings per common share – diluted $ 5.83 $ 4.30 $ 3.47 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts and Fair Values of Certain Assets | 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 table summarizes the carrying amounts and fair values of certain assets at December 31, 2017: At December 31, 2017 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Cash equivalents $ 7,933 $ 7,933 $ — $ — Restricted cash equivalents 96,375 96,375 — — Investments in marketable securities 8,119 8,119 — — The following table summarizes the carrying amounts and fair values of certain assets at January 1, 2017: At January 1, 2017 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Cash equivalents $ 7,017 $ 7,017 $ — $ — Restricted cash equivalents 69,113 69,113 — — Investments in marketable securities 7,260 7,260 — — |
RECAPITALIZATIONS AND FINANCI28
RECAPITALIZATIONS AND FINANCING ARRANGEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Consolidated Long-Term Debt | At December 31, 2017 and January 1, 2017, consolidated long-term debt consisted of the following (in thousands): 2017 2016 5.216% Class A-2 $ — $ 916,650 3.484% Class A-2-I 492,500 495,000 4.474% Class A-2-II 788,000 792,000 3.082% Class A-2-II 598,500 — 4.118% Class A-2-III 997,500 — Floating Rate Class A-2-I 299,250 — 2017 Variable Funding Notes — — 2015 Variable Funding Notes — — Capital lease obligations 5,437 5,730 Debt issuance costs, net of accumulated amortization of $6.8 million in 2017 and $21.1 million in 2016 (27,373 ) (21,503 ) Total debt 3,153,814 2,187,877 Less – current portion 32,324 38,887 Consolidated long-term debt, net of debt issuance costs $ 3,121,490 $ 2,148,990 |
Maturities of Long-Term Debt and Capital Lease Obligations | At December 31, 2017, maturities of long-term debt and capital lease obligations are as follows (in thousands): 2018 $ 32,324 2019 32,358 2020 509,896 2021 27,440 2022 880,238 Thereafter 1,698,931 $ 3,181,187 |
Schedule of Estimated Fair Value | Management estimated the approximate fair values of the 2012 Fixed Rate Notes, 2015 Notes and 2017 Notes as follows (in thousands): December 31, 2017 January 1, 2017 Principal Fair Value Principal Fair Value 2012 Seven-Year Fixed Rate Notes $ — $ — $ 916,650 $ 932,233 2015 Five-Year Fixed Rate Notes 492,500 494,470 495,000 485,595 2015 Ten-Year 788,000 821,884 792,000 765,864 2017 Five-Year Fixed Rate Notes 598,500 592,515 — — 2017 Ten-Year 997,500 1,023,435 — — 2017 Five-Year Floating Rate Notes 299,250 300,746 — — |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Rental Commitments for All Non-Cancelable Leases - Capital Leases | As of December 31, 2017, the future minimum rental commitments for all non-cancelable Operating Capital Leases Leases Total 2018 $ 45,064 $ 826 $ 45,890 2019 40,265 828 41,093 2020 35,124 831 35,955 2021 31,298 833 32,131 2022 26,668 836 27,504 Thereafter 58,982 4,343 63,325 Total future minimum rental commitments $ 237,401 8,497 $ 245,898 Less – amounts representing interest (3,060 ) Total principal payable on capital leases $ 5,437 |
Future Minimum Rental Commitments for All Non-Cancelable Leases - Operating Leases | As of December 31, 2017, the future minimum rental commitments for all non-cancelable Operating Capital Leases Leases Total 2018 $ 45,064 $ 826 $ 45,890 2019 40,265 828 41,093 2020 35,124 831 35,955 2021 31,298 833 32,131 2022 26,668 836 27,504 Thereafter 58,982 4,343 63,325 Total future minimum rental commitments $ 237,401 8,497 $ 245,898 Less – amounts representing interest (3,060 ) Total principal payable on capital leases $ 5,437 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Before Provision for Income Taxes | Income before provision for income taxes in 2017, 2016 and 2015 consists of the following (in thousands): 2017 2016 2015 Domestic $ 386,989 $ 334,892 $ 298,055 Foreign 13,164 9,766 8,160 $ 400,153 $ 344,658 $ 306,215 |
Differences Between Statutory Income Tax Provision and Consolidated Provision for Income Taxes | The differences between the United States Federal statutory income tax provision (using the statutory rate of 35%) and the Company’s consolidated provision for income taxes for 2017, 2016 and 2015 are summarized as follows (in thousands): 2017 2016 2015 Federal income tax provision based on the statutory rate $ 140,054 $ 120,630 $ 107,175 State and local income taxes, net of related Federal income taxes 11,520 9,787 8,589 Non-resident 20,210 17,275 15,750 Foreign tax and other tax credits (23,324 ) (20,049 ) (18,345 ) Excess tax benefits from equity-based compensation (27,227 ) — — Non-deductible 1,794 1,579 1,180 Unrecognized tax provision (benefit), net of related Federal income taxes (173 ) (98 ) 110 Other (606 ) 856 (1,033 ) $ 122,248 $ 129,980 $ 113,426 |
Components of Consolidated Provision for Income Taxes | The components of the 2017, 2016 and 2015 consolidated provision for income taxes are as follows (in thousands): 2017 2016 2015 Provision for Federal income taxes Current provision $ 81,747 $ 100,673 $ 84,071 Deferred provision (benefit) 6,732 (3,096 ) 862 Total provision for Federal income taxes 88,479 97,577 84,933 Provision for state and local income taxes Current provision 14,131 15,091 11,892 Deferred provision (benefit) (572 ) 37 851 Total provision for state and local income taxes 13,559 15,128 12,743 Provision for non-resident 20,210 17,275 15,750 $ 122,248 $ 129,980 $ 113,426 |
Significant Components of Net Deferred Income Taxes | As of December 31, 2017 and January 1, 2017, the significant components of net deferred income taxes are as follows (in thousands): 2017 2016 Deferred Federal income tax assets Insurance reserves $ 8,290 $ 11,202 Equity compensation 7,724 11,978 Other accruals and reserves 7,187 18,741 Bad debt reserves 309 1,005 Other 3,164 5,732 Total deferred Federal income tax assets 26,674 48,658 Deferred Federal income tax liabilities Depreciation, amortization and asset basis differences 4,823 6,352 Capitalized software 18,522 25,869 Gain on debt extinguishments 2,722 9,073 Total deferred Federal income tax liabilities 26,067 41,294 Net deferred Federal income tax asset 607 7,364 Net deferred state and local income tax asset 2,143 1,571 Net deferred income taxes $ 2,750 $ 8,935 |
Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Balance as of December 28, 2014 $ 2,939 Additions for tax positions of current year 233 Additions for tax positions of prior years 171 Reductions in tax positions from prior years for: Changes in prior year tax positions (100 ) Settlements during the period (27 ) Lapses of applicable statute of limitations (1,101 ) Balance as of January 3, 2016 2,115 Additions for tax positions of current year 209 Reductions in tax positions from prior years for: Changes in prior year tax positions (33 ) Lapses of applicable statute of limitations (337 ) Balance as of January 1, 2017 1,954 Additions for tax positions of current year 224 Additions for tax positions of prior years 42 Reductions in tax positions from prior years for: Changes in prior year tax positions (10 ) Lapses of applicable statute of limitations (373 ) Balance as of December 31, 2017 $ 1,837 |
EQUITY INCENTIVE PLANS (Tables)
EQUITY INCENTIVE PLANS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options Activity Related to Equity Incentive Plans | Stock option activity related to the 2004 Equity Incentive Plan is summarized as follows: Common Stock Options Weighted Weighted Average Average Aggregate Exercise Remaining Intrinsic Outstanding Price Life Value (Years) (In thousands) Stock options at December 28, 2014 3,590,115 $ 22.47 Stock options granted 193,970 111.63 Stock options cancelled (32,176 ) 73.55 Stock options exercised (428,433 ) 11.70 Stock options at January 3, 2016 3,323,476 $ 28.57 Stock options granted 233,280 129.42 Stock options cancelled (12,798 ) 104.23 Stock options exercised (1,045,648 ) 14.38 Stock options at January 1, 2017 2,498,310 $ 43.54 Stock options granted 126,720 201.19 Stock options cancelled (28,991 ) 101.97 Stock options exercised (357,925 ) 17.05 Stock options at December 31, 2017 2,238,114 $ 55.94 4.7 $ 299,518 Exercisable at December 31, 2017 1,827,568 $ 36.61 3.9 $ 278,438 |
Stock Options Valuation Assumptions | 2017 2016 2015 Risk-free interest rate 2.0 % 1.3 % 1.7 % Expected life (years) 5.5 5.5 5.5 Expected volatility 25.8 % 26.0 % 28.4 % Expected dividend yield 0.9 % 1.2 % 1.1 % Weighted average fair value per stock option $ 49.57 $ 29.59 $ 28.45 |
Restricted Stock and Performance Based Restricted Stock Activity Related to Equity Incentive Plans | Restricted stock and performance-based restricted stock activity related to the 2004 Equity Incentive Plan is summarized as follows: Weighted Average Grant Date Shares Fair Value Nonvested at January 1, 2017 276,220 $ 97.48 Shares granted (1) 72,250 205.21 Shares cancelled (16,109 ) 115.71 Shares vested (137,757 ) 80.55 Nonvested at December 31, 2017 194,604 $ 147.94 (1) The weighted average grant date fair value for performance-based restricted shares granted was calculated based on the market price on the grant dates. Certain tranches will ultimately be valued when the performance condition is established for each tranche, which generally occurs in the fourth quarter of each fiscal year. |
CAPITAL STRUCTURE (Tables)
CAPITAL STRUCTURE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text Block [Abstract] | |
Share Components of Outstanding Common Stock | The share components of outstanding common stock at December 31, 2017 and January 1, 2017 are as follows: 2017 2016 Voting 42,881,905 48,083,721 Non-Voting 16,424 16,422 Total Common Stock 42,898,329 48,100,143 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Financial Information by Operating Segment | The tables below summarize the financial information concerning the Company’s reportable segments for fiscal 2017, 2016 and 2015. Intersegment Revenues are comprised of sales of food, equipment and supplies from the Supply Chain segment to the Company-owned stores in the Domestic Stores segment. Intersegment sales prices are market based. The “Other” column as it relates to Segment Income and income from operations information below primarily includes corporate administrative costs. The “Other” column as it relates to capital expenditures primarily includes capitalized software, certain equipment and leasehold improvements. Tabular amounts presented below are in thousands. Domestic International Intersegment Stores Supply Chain Franchise Revenues__ Other Total Revenues- 2017 $ 842,233 $ 1,874,943 $ 206,708 $ (135,905 ) — $ 2,787,979 2016 751,284 1,669,000 176,999 (124,655 ) — 2,472,628 2015 669,724 1,495,308 163,643 (112,147 ) — 2,216,528 Segment Income- 2017 $ 306,406 $ 163,077 $ 161,263 N/A $ (46,958 ) $ 583,788 2016 271,794 144,130 138,487 N/A (42,802 ) 511,609 2015 240,942 127,155 130,650 N/A (42,075 ) 456,672 Income from Operations- 2017 $ 298,852 $ 151,622 $ 161,066 N/A $ (90,308 ) $ 521,232 2016 261,826 133,745 138,306 N/A (79,835 ) 454,042 2015 233,248 117,185 130,601 N/A (75,595 ) 405,439 Capital Expenditures- 2017 $ 20,579 $ 34,123 $ 28 N/A $ 35,527 $ 90,257 2016 18,225 11,527 642 N/A 31,143 61,537 2015 25,120 9,928 — N/A 27,317 62,365 |
Reconciliation of Total Segment Income to Income Before Provision for Income Taxes | The following table reconciles total Segment Income to income before provision for income taxes: 2017 2016 2015 Total Segment Income $ 583,788 $ 511,609 $ 456,672 Depreciation and amortization (44,369 ) (38,140 ) (32,434 ) Gains (losses) on sale/disposal of assets 3,148 (863 ) (316 ) Non-cash (20,713 ) (18,564 ) (17,623 ) Recapitalization-related expenses (622 ) — (860 ) Income from operations 521,232 454,042 405,439 Interest income 1,462 685 313 Interest expense (122,541 ) (110,069 ) (99,537 ) Income before provision for income taxes $ 400,153 $ 344,658 $ 306,215 |
Identifiable Asset Information | The following table summarizes the Company’s identifiable asset information as of December 31, 2017 and January 1, 2017: 2017 2016 Domestic Stores $ 96,771 $ 89,220 Domestic supply chain 206,059 172,210 Total domestic assets 302,830 261,430 International Franchise 19,728 17,436 International supply chain 24,925 19,368 Total international assets 44,653 36,804 Unallocated 489,270 418,061 Total consolidated assets $ 836,753 $ 716,295 |
Goodwill | The following table summarizes the Company’s goodwill balance as of December 31, 2017 and January 1, 2017: 2017 2016 Domestic Stores $ 14,356 $ 14,991 Supply Chain 1,067 1,067 Consolidated goodwill $ 15,423 $ 16,058 |
PERIODIC FINANCIAL DATA (UNAU34
PERIODIC FINANCIAL DATA (UNAUDITED; IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Periodic Financial Data | For the Fiscal For the Fiscal Quarter Ended Year Ended March 26, June 18, September 10, December 31, December 31, 2017 2017 2017 2017 2017 Total revenues $ 624,217 $ 628,611 $ 643,642 $ 891,509 $ 2,787,979 Operating margin 193,816 192,845 198,478 280,852 865,991 Income before provision for income taxes 90,514 88,532 84,551 136,556 400,153 Net income 62,469 65,741 56,368 93,327 277,905 Earnings per common share – basic (1) $ 1.31 $ 1.37 $ 1.22 $ 2.17 $ 6.05 Earnings per common share – diluted (1) $ 1.26 $ 1.32 $ 1.18 $ 2.09 $ 5.83 Common stock dividends declared per share $ 0.46 $ 0.46 $ 0.46 $ 0.46 $ 1.84 For the Fiscal For the Fiscal Quarter Ended Year Ended March 27, June 19, September 11, January 1, January 1, 2016 2016 2016 2017 2017 Total revenues $ 539,175 $ 547,341 $ 566,677 $ 819,435 $ 2,472,628 Operating margin 167,216 171,838 173,903 254,734 767,691 Income before provision for income taxes 72,842 78,692 75,814 117,310 344,658 Net income 45,451 49,261 47,232 72,734 214,678 Earnings per common share – basic $ 0.91 $ 1.00 $ 0.98 $ 1.52 $ 4.41 Earnings per common share – diluted (1) $ 0.89 $ 0.98 $ 0.96 $ 1.48 $ 4.30 Common stock dividends declared per share $ 0.38 $ 0.38 $ 0.38 $ 0.38 $ 1.52 (1) Earnings per share figures may not sum to the total due to the rounding of each individual calculation. |
Description of Business and S35
Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 4 Months Ended | 12 Months Ended | |||||||||||
Oct. 31, 2015 | Sep. 10, 2017 | Jun. 18, 2017 | Mar. 26, 2017 | Sep. 11, 2016 | Jun. 19, 2016 | Mar. 27, 2016 | Sep. 06, 2015 | Mar. 22, 2015 | Dec. 31, 2017 | Jan. 01, 2017 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | Mar. 16, 2012 | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Restricted cash and cash equivalent | $ 96,375,000 | $ 69,113,000 | $ 96,375,000 | $ 69,113,000 | |||||||||||
Capital lease assets | 4,300,000 | 4,700,000 | 4,300,000 | 4,700,000 | |||||||||||
Accumulated amortization of capital lease assets | 6,200,000 | 5,800,000 | 6,200,000 | 5,800,000 | |||||||||||
Depreciation and amortization expense | 44,369,000 | 38,140,000 | $ 32,434,000 | ||||||||||||
Impairment loss on long-lived assets | 0 | 0 | 0 | ||||||||||||
Remaining unamortized debt issuance costs expensed by company | 27,373,000 | $ 21,503,000 | 27,373,000 | 21,503,000 | |||||||||||
Amortization of debt issuance costs | 10,976,000 | 6,418,000 | 12,393,000 | ||||||||||||
Goodwill impairment charges | 0 | 0 | 0 | ||||||||||||
Capitalized software amortization expense | 14,800,000 | 10,800,000 | 8,300,000 | ||||||||||||
Amortization Expenses in 2018 | 14,300,000 | 14,300,000 | |||||||||||||
Amortization Expenses in 2019 | 9,400,000 | 9,400,000 | |||||||||||||
Amortization Expenses in 2020 | 5,300,000 | 5,300,000 | |||||||||||||
Amortization Expenses in 2021 | 3,300,000 | 3,300,000 | |||||||||||||
Amortization Expenses in 2022 | 1,600,000 | 1,600,000 | |||||||||||||
Exposures for workers' compensation and general liability programs | 1,000,000 | 1,000,000 | |||||||||||||
Total insurance limits under the retention programs | $ 110,000,000 | $ 110,000,000 | |||||||||||||
Percentage of profit-sharing arrangements with participating stores | 50.00% | ||||||||||||||
Revenue reduction due to profit-sharing obligation | $ 119,700,000 | 99,800,000 | 85,800,000 | ||||||||||||
Advertising expense | 39,800,000 | 34,500,000 | 32,000,000 | ||||||||||||
Advertising contributions by company-owned stores | 30,400,000 | 27,200,000 | 24,900,000 | ||||||||||||
Advertising contributions by franchisees | 323,800,000 | 293,800,000 | 266,000,000 | ||||||||||||
Rent expenses | $ 57,900,000 | $ 49,900,000 | $ 46,100,000 | ||||||||||||
Common stock dividend declared, per share | $ 0.46 | $ 0.46 | $ 0.46 | $ 0.38 | $ 0.38 | $ 0.38 | $ 0.46 | $ 0.38 | $ 1.84 | $ 1.52 | $ 1.24 | ||||
Common stock dividend declared, paid | $ 84,298,000 | $ 73,925,000 | $ 80,329,000 | ||||||||||||
Interest paid | 107,400,000 | 104,600,000 | 80,800,000 | ||||||||||||
Cash paid for income taxes | 122,600,000 | 74,300,000 | 80,100,000 | ||||||||||||
Capital expenditure accrual | 4,000,000 | 3,800,000 | 800,000 | ||||||||||||
Capital lease | $ 600,000 | $ 3,400,000 | |||||||||||||
PROVISION FOR INCOME TAXES | 122,248,000 | 129,980,000 | 113,426,000 | ||||||||||||
Tax impact from equity-based compensation | 27,227,000 | 48,129,000 | 17,775,000 | ||||||||||||
Tax impact from equity-based compensation | 48,129,000 | 17,775,000 | |||||||||||||
Accounting Standards Update 2016-09 [Member] | |||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
PROVISION FOR INCOME TAXES | (27,200,000) | ||||||||||||||
Tax impact from equity-based compensation | 27,200,000 | ||||||||||||||
Tax impact from equity-based compensation | 48,100,000 | 17,800,000 | |||||||||||||
New Accounting Pronouncements Not Yet Adopted [Member] | |||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Corresponding contract liability | $ 15,000,000 | 15,000,000 | |||||||||||||
Franchise Advertising Contributions | 324,000,000 | ||||||||||||||
Minimum [Member] | |||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Owned and non-owned automobile liabilities | 500,000 | 500,000 | |||||||||||||
Maximum [Member] | |||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Owned and non-owned automobile liabilities | 3,000,000 | 3,000,000 | |||||||||||||
2012 Recapitalization [Member] | |||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Debt issuance costs written off | 5,700,000 | 600,000 | 6,900,000 | ||||||||||||
2015 Recapitalization [Member] | |||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Debt issuance costs | 17,400,000 | 17,400,000 | |||||||||||||
2017 Recapitalization [Member] | |||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Debt issuance costs | 16,800,000 | 16,800,000 | |||||||||||||
Debt issuance costs written off | $ 5,500,000 | ||||||||||||||
Software [Member] | Minimum [Member] | |||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Estimated useful lives of the software | 1 year | ||||||||||||||
Software [Member] | Maximum [Member] | |||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Estimated useful lives of the software | 7 years | ||||||||||||||
Property Plant and Equipment [Member] | |||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Depreciation and amortization expense | $ 29,600,000 | 27,300,000 | 24,100,000 | ||||||||||||
2012 Fixed Rate Notes [Member] | 2015 Recapitalization [Member] | |||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Debt extinguishment | $ 551,300,000 | ||||||||||||||
2017 Dividend [Member] | |||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Common stock dividend declared | $ 84,200,000 | ||||||||||||||
Common stock dividend declared, per share | $ 1.84 | ||||||||||||||
Common stock dividend declared, paid | $ 84,200,000 | ||||||||||||||
2016 Dividend [Member] | |||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Common stock dividend declared | $ 74,000,000 | ||||||||||||||
Common stock dividend declared, per share | $ 1.52 | ||||||||||||||
Common stock dividend declared, paid | $ 74,000,000 | ||||||||||||||
2015 Dividend [Member] | |||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Common stock dividend declared | $ 66,500,000 | ||||||||||||||
Common stock dividend declared, per share | $ 1.24 | ||||||||||||||
Common stock dividend declared, paid | $ 66,500,000 | ||||||||||||||
2014 Dividend [Member] | |||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Common stock dividend declared, paid | 13,800,000 | ||||||||||||||
Cash and Cash Equivalents Held for Future Interest Payment [Member] | |||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Restricted cash and cash equivalent | 122,900,000 | $ 99,800,000 | 122,900,000 | 99,800,000 | |||||||||||
Cash Equivalents Held in Interest Reserve [Member] | |||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Restricted cash and cash equivalent | 32,100,000 | $ 26,700,000 | 32,100,000 | $ 26,700,000 | |||||||||||
Cash Held as Collateral for Outstanding Letters of Credit [Member] | |||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Restricted cash and cash equivalent | 36,700,000 | 36,700,000 | |||||||||||||
Other Restricted Cash [Member] | |||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Restricted cash and cash equivalent | 100,000 | 100,000 | |||||||||||||
Class A-2 Notes [Member] | 2012 Recapitalization [Member] | |||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Debt issuance costs | $ 39,900,000 | ||||||||||||||
Class A-2 Notes [Member] | 2012 Fixed Rate Notes [Member] | 2015 Recapitalization [Member] | |||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Debt issuance costs written off | 6,900,000 | ||||||||||||||
Debt extinguishment | $ 551,300,000 | ||||||||||||||
Class A-2 Notes [Member] | 2012 Fixed Rate Notes [Member] | 2017 Recapitalization [Member] | |||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Debt extinguishment | 910,200,000 | ||||||||||||||
Remaining unamortized debt issuance costs expensed by company | $ 5,500,000 | $ 5,500,000 | |||||||||||||
Class A-2-I Notes [Member] | |||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Deferred financing costs, amortization period | 5 years | ||||||||||||||
Class A-2-I Notes [Member] | 2017 Recapitalization [Member] | |||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Deferred financing costs, amortization period | 5 years | ||||||||||||||
Class A-2-II Notes [Member] | |||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Deferred financing costs, amortization period | 10 years | ||||||||||||||
Class A-2-II Notes [Member] | 2017 Recapitalization [Member] | |||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Deferred financing costs, amortization period | 10 years |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Inventory Disclosure [Abstract] | ||
Food | $ 36,645 | $ 36,644 |
Equipment and supplies | 3,316 | 3,537 |
Inventories | $ 39,961 | $ 40,181 |
Estimated Useful Lives of Prope
Estimated Useful Lives of Property Plant and Equipment Excluding Capital Lease Asset (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 20 years |
Leasehold and Other Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Leasehold and Other Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 15 years |
Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 15 years |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Sep. 10, 2017 | Jun. 18, 2017 | Mar. 26, 2017 | Sep. 11, 2016 | Jun. 19, 2016 | Mar. 27, 2016 | Dec. 31, 2017 | Jan. 01, 2017 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net income available to common stockholders - basic and diluted | $ 56,368 | $ 65,741 | $ 62,469 | $ 47,232 | $ 49,261 | $ 45,451 | $ 93,327 | $ 72,734 | $ 277,905 | $ 214,678 | $ 192,789 |
Weighted average number of common shares | 45,954,659 | 48,647,167 | 53,828,609 | ||||||||
Earnings per common share - basic | $ 1.22 | $ 1.37 | $ 1.31 | $ 0.98 | $ 1 | $ 0.91 | $ 2.17 | $ 1.52 | $ 6.05 | $ 4.41 | $ 3.58 |
Diluted weighted average number of common shares | 47,677,834 | 49,923,859 | 55,532,955 | ||||||||
Earnings per common share - diluted | $ 1.18 | $ 1.32 | $ 1.26 | $ 0.96 | $ 0.98 | $ 0.89 | $ 2.09 | $ 1.48 | $ 5.83 | $ 4.30 | $ 3.47 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Stock Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive Securities Excluded from Computation of Earnings Per Share | 145,860 | 121,075 | 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 | 110,274 | 134,113 | 189,532 |
Carrying Amounts and Fair Value
Carrying Amounts and Fair Values of Certain Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents, carrying amount | $ 7,933 | $ 7,017 |
Restricted cash equivalents, carrying amount | 96,375 | 69,113 |
Investments in marketable securities, carrying amount | 8,119 | 7,260 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents, fair value | 7,933 | 7,017 |
Restricted cash equivalents, fair value | 96,375 | 69,113 |
Investments in marketable securities, carrying amount | $ 8,119 | $ 7,260 |
Recapitalizations and Financi41
Recapitalizations and Financing Arrangements - Additional Information (Detail) | Dec. 15, 2017 | Jul. 24, 2017USD ($) | Oct. 31, 2015USD ($) | Dec. 31, 2017USD ($) | Sep. 07, 2017 | Mar. 26, 2017 | Dec. 31, 2017USD ($)Renewals | Jan. 01, 2017USD ($) | Jan. 03, 2016USD ($) | Aug. 02, 2017USD ($) | Apr. 30, 2012USD ($) |
Debt Instrument [Line Items] | |||||||||||
Scheduled principal payments in year 2018 | $ 32,324,000 | $ 32,324,000 | |||||||||
Scheduled principal payments in year 2019 | 32,358,000 | 32,358,000 | |||||||||
Scheduled principal payments in year 2020 | 509,896,000 | 509,896,000 | |||||||||
Scheduled principal payments in year 2021 | 27,440,000 | 27,440,000 | |||||||||
Scheduled principal payments in year 2022 | 880,238,000 | 880,238,000 | |||||||||
Letters of credit | 46,700,000 | 46,700,000 | $ 44,300,000 | ||||||||
Interest expense | 122,541,000 | 110,069,000 | $ 99,537,000 | ||||||||
ASR Agreement on August 03 2017 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Accelerated share repurchase, agreement amount | 1,000,000,000 | 1,000,000,000 | $ 1,000,000,000 | ||||||||
ASR Agreement on October 27 2015 [Member] | Counterparty [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Accelerated share repurchase, agreement amount | 600,000,000 | 600,000,000 | |||||||||
2017 Variable Funding Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable Funding Notes | 0 | 0 | 0 | ||||||||
2015 Class Five-Year Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument face amount | 492,500,000 | 492,500,000 | 495,000,000 | ||||||||
2015 Ten-Year Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument face amount | 788,000,000 | $ 788,000,000 | 792,000,000 | ||||||||
2017 Floating and Fixed Rate and 2015 Fixed Rate Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Leverage ratio of total debt to earnings before interest, tax, depreciation amortization | 5 | ||||||||||
2015 Variable Funding Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable Funding Notes | $ 0 | $ 0 | 0 | ||||||||
2012 Fixed Rate Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument face amount | 916,650,000 | ||||||||||
Series 2012-1 5.216% Fixed Rate Senior Secured Notes [Member] | Minimum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Leverage ratio of total debt to earnings before interest, tax, depreciation amortization | 4.5 | ||||||||||
Series 2012-1 5.216% Fixed Rate Senior Secured Notes [Member] | Maximum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Leverage ratio of total debt to earnings before interest, tax, depreciation amortization | 4.5 | ||||||||||
Series 2012-1 5.216% Fixed Rate Senior Secured Notes [Member] | 5.261% Class A-2 Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument face amount | $ 1,575,000,000 | ||||||||||
Debt instrument, stated percentage | 5.216% | ||||||||||
Series 2012-1 5.216% Fixed Rate Senior Secured Notes [Member] | 2012 and 2015 Fixed Rate Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Leverage ratio of total debt to earnings before interest, tax, depreciation amortization | 4.5 | ||||||||||
Series 2012-1 5.216% Fixed Rate Senior Secured Notes [Member] | 2012 Fixed Rate Notes and 2015 Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Leverage ratio of total debt to earnings before interest, tax, depreciation amortization | 4.5 | 4.5 | |||||||||
Series 2012-1 5.216% Fixed Rate Senior Secured Notes [Member] | 2012 Fixed Rate Notes and 2015 Notes [Member] | Maximum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Leverage ratio of total debt to earnings before interest, tax, depreciation amortization | 5 | ||||||||||
2012 Recapitalization [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayment of principal and interest | $ 910,500,000 | ||||||||||
Company wrote-off In connection with the Recapitalization | 5,700,000 | $ 600,000 | $ 6,900,000 | ||||||||
2012 Recapitalization [Member] | 2012 Variable Funding Notes [Member] | Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable funding notes | $ 100,000,000 | ||||||||||
2017 Recapitalization [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Gross proceeds from the issuance of debt | $ 1,900,000,000 | ||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 6,400,000 | ||||||||||
Company wrote-off In connection with the Recapitalization | 5,500,000 | ||||||||||
Interest expense | 300,000 | ||||||||||
Other net 2015 Recapitalization-related general and administrative expenses | 600,000 | ||||||||||
Debt issuance costs | $ 16,800,000 | $ 16,800,000 | |||||||||
2017 Recapitalization [Member] | 2017 Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, stated percentage | 5.00% | 5.00% | |||||||||
Scheduled principal payments in year 2018 | $ 19,000,000 | $ 19,000,000 | |||||||||
Scheduled principal payments in year 2019 | 19,000,000 | 19,000,000 | |||||||||
Scheduled principal payments in year 2020 | 19,000,000 | 19,000,000 | |||||||||
Scheduled principal payments in year 2021 | 19,000,000 | 19,000,000 | |||||||||
Scheduled principal payments in year 2022 | 871,800,000 | 871,800,000 | |||||||||
Scheduled principal payments in year 2023 | 10,000,000 | 10,000,000 | |||||||||
Scheduled principal payments in year 2024 | 10,000,000 | 10,000,000 | |||||||||
Scheduled principal payments in year 2025 | 10,000,000 | 10,000,000 | |||||||||
Scheduled principal payments in year 2026 | 10,000,000 | 10,000,000 | |||||||||
Scheduled principal payments in year 2027 | 907,500,000 | 907,500,000 | |||||||||
Payments of note | $ 4,800,000 | ||||||||||
Legal final maturity | 2047-10 | ||||||||||
2017 Recapitalization [Member] | 2017 Variable Funding Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate description | At the closing date of the 2017 Recapitalization, interest on the 2017 Variable Funding Notes was payable at a per year rate equal to LIBOR plus 180 basis points. | ||||||||||
Interest rate spread | 1.50% | 5.00% | |||||||||
Variable funding notes | 175,000,000 | $ 175,000,000 | |||||||||
Expected repayment date | 2022-07 | ||||||||||
Number of renewals | Renewals | 2 | ||||||||||
Term of renewals | 1 year | ||||||||||
Letters of credit | 46,700,000 | $ 46,700,000 | |||||||||
Line of Credit, Current Borrowing Capacity | 128,300,000 | $ 128,300,000 | |||||||||
2017 Recapitalization [Member] | 2017 Variable Funding Notes [Member] | Libor Rate [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate spread | 1.80% | ||||||||||
2017 Recapitalization [Member] | 2017 Variable Funding Notes [Member] | Minimum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable fund notes, unused portion, commitment fee percentage | 0.50% | ||||||||||
2017 Recapitalization [Member] | 2017 Variable Funding Notes [Member] | Maximum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable fund notes, unused portion, commitment fee percentage | 1.00% | ||||||||||
2017 Recapitalization [Member] | 2017 Variable Funding Notes [Member] | Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable funding notes | 175,000,000 | ||||||||||
2017 Recapitalization [Member] | 2017 Floating Rate Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument face amount | $ 300,000,000 | ||||||||||
Debt instrument, term | 5 years | ||||||||||
Debt instrument interest rate description | The interest rate on the 2017 Floating Rate Notes is payable at a rate equal to LIBOR plus 125 basis points. | ||||||||||
Expected repayment date | 2022-07 | ||||||||||
2017 Recapitalization [Member] | 2017 Floating Rate Notes [Member] | Libor Rate [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate spread | 1.25% | ||||||||||
2017 Recapitalization [Member] | 2017 Five-Year Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument face amount | $ 600,000,000 | ||||||||||
Debt instrument, term | 5 years | ||||||||||
Debt instrument, stated percentage | 3.082% | ||||||||||
Expected repayment date | 2022-07 | ||||||||||
2017 Recapitalization [Member] | 2017 Ten-Year Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument face amount | $ 1,000,000,000 | ||||||||||
Debt instrument, term | 10 years | ||||||||||
Debt instrument, stated percentage | 4.118% | ||||||||||
Expected repayment date | 2027-07 | ||||||||||
2017 Recapitalization [Member] | 2015 Variable Funding Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable Funding Notes | 0 | $ 0 | |||||||||
2015 Recapitalization [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument face amount | $ 1,300,000,000 | ||||||||||
Interest expense | 400,000 | ||||||||||
Other net 2015 Recapitalization-related general and administrative expenses | 900,000 | ||||||||||
Debt issuance costs | 17,400,000 | 17,400,000 | |||||||||
Recapitalization expenses | 8,100,000 | ||||||||||
Expenses related to write-offs of deferred financing fees, bond discount and interest rate swap related to extinguished debt | $ 6,900,000 | ||||||||||
2015 Recapitalization [Member] | 2012 Variable Funding Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable Funding Notes | $ 0 | $ 0 | |||||||||
2015 Recapitalization [Member] | Two Thousand Fifteen Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, stated percentage | 5.00% | 5.00% | |||||||||
Scheduled principal payments in year 2018 | $ 13,000,000 | $ 13,000,000 | |||||||||
Scheduled principal payments in year 2019 | 13,000,000 | 13,000,000 | |||||||||
Scheduled principal payments in year 2020 | 490,500,000 | 490,500,000 | |||||||||
Scheduled principal payments in year 2021 | 8,000,000 | 8,000,000 | |||||||||
Scheduled principal payments in year 2022 | 8,000,000 | 8,000,000 | |||||||||
Scheduled principal payments in year 2023 | 8,000,000 | 8,000,000 | |||||||||
Scheduled principal payments in year 2024 | 8,000,000 | 8,000,000 | |||||||||
Scheduled principal payments in year 2025 | $ 732,000,000 | 732,000,000 | |||||||||
Payments of note | $ 6,500,000 | ||||||||||
Legal final maturity | 2045-10 | ||||||||||
2015 Recapitalization [Member] | 2015 Class Five-Year Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument face amount | $ 500,000,000 | ||||||||||
Debt instrument, term | 5 years | ||||||||||
Debt instrument, stated percentage | 3.484% | ||||||||||
Expected repayment date | 2020-10 | ||||||||||
2015 Recapitalization [Member] | 2015 Ten-Year Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument face amount | $ 800,000,000 | ||||||||||
Debt instrument, term | 10 years | ||||||||||
Debt instrument, stated percentage | 4.474% | ||||||||||
Expected repayment date | 2025-10 | ||||||||||
2015 Recapitalization [Member] | 2015 Variable Funding Notes [Member] | Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable funding notes | $ 125,000,000 | ||||||||||
2015 Recapitalization [Member] | 2012 Fixed Rate Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Prepayment of fixed rate notes | $ 551,300,000 | ||||||||||
Class A-2-I Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Deferred financing costs, amortization period | 5 years | ||||||||||
Class A-2-I Notes [Member] | 2017 Recapitalization [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Deferred financing costs, amortization period | 5 years | ||||||||||
Class A-2-II Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Deferred financing costs, amortization period | 10 years | ||||||||||
Class A-2-II Notes [Member] | 2017 Recapitalization [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Deferred financing costs, amortization period | 10 years |
Consolidated Long-Term Debt (De
Consolidated Long-Term Debt (Detail) - USD ($) | Dec. 31, 2017 | Jan. 01, 2017 |
Long Term Debt And Other Financing Arrangement [Line Items] | ||
Capital lease obligations | $ 5,437,000 | $ 5,730,000 |
Debt issuance costs, net of accumulated amortization of $6.8 million in 2017 and $21.1 million in 2016 | (27,373,000) | (21,503,000) |
Total debt | 3,153,814,000 | 2,187,877,000 |
Less - current portion | 32,324,000 | 38,887,000 |
Consolidated long-term debt, net of debt issuance costs | 3,121,490,000 | 2,148,990,000 |
Total debt | 3,153,814,000 | 2,187,877,000 |
Series 2012-1 5.216% Fixed Rate Senior Secured Notes [Member] | 2017 Recapitalization [Member] | ||
Long Term Debt And Other Financing Arrangement [Line Items] | ||
Senior notes | 916,650,000 | |
3.484% Class A-2-I Notes; expected repayment date October 2020; legal final maturity October 2045 [Member] | ||
Long Term Debt And Other Financing Arrangement [Line Items] | ||
Senior notes | 492,500,000 | 495,000,000 |
4.474% Class A-2-II Notes; expected repayment date October 2025; legal final maturity October 2045 [Member] | ||
Long Term Debt And Other Financing Arrangement [Line Items] | ||
Senior notes | 788,000,000 | 792,000,000 |
3.082% Class A-2-II Notes; expected repayment date July 2022; legal final maturity July 2047 [Member] | ||
Long Term Debt And Other Financing Arrangement [Line Items] | ||
Senior notes | 598,500,000 | |
4.118% Class A-2-III Notes; expected repayment date July 2027; legal final maturity July 2047 [Member] | ||
Long Term Debt And Other Financing Arrangement [Line Items] | ||
Senior notes | 997,500,000 | |
Floating Rate Class A-2-I Notes; expected repayment date July 2022; legal final maturity July 2047 [Member] | ||
Long Term Debt And Other Financing Arrangement [Line Items] | ||
Senior notes | 299,250,000 | |
2017 Variable Funding Notes [Member] | ||
Long Term Debt And Other Financing Arrangement [Line Items] | ||
Variable Funding Notes | 0 | 0 |
2015 Variable Funding Notes [Member] | ||
Long Term Debt And Other Financing Arrangement [Line Items] | ||
Variable Funding Notes | 0 | $ 0 |
2015 Variable Funding Notes [Member] | 2017 Recapitalization [Member] | ||
Long Term Debt And Other Financing Arrangement [Line Items] | ||
Variable Funding Notes | $ 0 |
Consolidated Long-Term Debt (Pa
Consolidated Long-Term Debt (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Jan. 01, 2017 | |
Long Term Debt And Other Financing Arrangement [Line Items] | ||
Amortization of Financing Costs | $ 6.8 | $ 21.1 |
3.484% Class A-2-I Notes; expected repayment date October 2020; legal final maturity October 2045 [Member] | ||
Long Term Debt And Other Financing Arrangement [Line Items] | ||
Expected repayment date | 2020-10 | 2020-10 |
Legal final maturity | 2045-10 | 2045-10 |
4.474% Class A-2-II Notes; expected repayment date October 2025; legal final maturity October 2045 [Member] | ||
Long Term Debt And Other Financing Arrangement [Line Items] | ||
Expected repayment date | 2025-10 | 2025-10 |
Legal final maturity | 2045-10 | 2045-10 |
3.082% Class A-2-II Notes; expected repayment date July 2022; legal final maturity July 2047 [Member] | ||
Long Term Debt And Other Financing Arrangement [Line Items] | ||
Expected repayment date | 2022-07 | 2022-07 |
Legal final maturity | 2047-07 | 2047-07 |
4.118% Class A-2-III Notes; expected repayment date July 2027; legal final maturity July 2047 [Member] | ||
Long Term Debt And Other Financing Arrangement [Line Items] | ||
Expected repayment date | 2027-07 | 2027-07 |
Legal final maturity | 2047-07 | 2047-07 |
Floating Rate Class A-2-I Notes; expected repayment date July 2022; legal final maturity July 2047 [Member] | ||
Long Term Debt And Other Financing Arrangement [Line Items] | ||
Expected repayment date | 2022-07 | 2022-07 |
Legal final maturity | 2047-07 | 2047-07 |
Maturities of Long-Term Debt an
Maturities of Long-Term Debt and Capital Lease Obligations (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 32,324 |
2,019 | 32,358 |
2,020 | 509,896 |
2,021 | 27,440 |
2,022 | 880,238 |
Thereafter | 1,698,931 |
Maturities of long term debt and capital obligations, Total | $ 3,181,187 |
Schedule of Estimated Fair Valu
Schedule of Estimated Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
2012 Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | $ 916,650 | |
Fair Value | 932,233 | |
2015 Class Five-Year Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | $ 492,500 | 495,000 |
Fair Value | 494,470 | 485,595 |
2015 Ten-Year Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 788,000 | 792,000 |
Fair Value | 821,884 | $ 765,864 |
2017 Five-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 598,500 | |
Fair Value | 592,515 | |
2017 Ten-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 997,500 | |
Fair Value | 1,023,435 | |
2017 Five-Year Floating Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 299,250 | |
Fair Value | $ 300,746 |
Future Minimum Rental Commitmen
Future Minimum Rental Commitments for All Non-Cancelable Leases (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2018, Operating Leases | $ 45,064 |
2019, Operating Leases | 40,265 |
2020, Operating Leases | 35,124 |
2021, Operating Leases | 31,298 |
2022, Operating Leases | 26,668 |
Thereafter, Operating Leases | 58,982 |
Total future minimum rental commitments, Operating Leases | 237,401 |
2018, Capital Leases | 826 |
2019, Capital Leases | 828 |
2020, Capital Leases | 831 |
2021, Capital Leases | 833 |
2022, Capital Leases | 836 |
Thereafter, Capital Leases | 4,343 |
Total future minimum rental commitments, Capital Leases | 8,497 |
Less - amounts representing interest, Capital Leases | (3,060) |
Total principal payable on capital leases | 5,437 |
2018, Operating and Capital Leases | 45,890 |
2019, Operating and Capital Leases | 41,093 |
2020,Operating and Capital Leases | 35,955 |
2021, Operating and Capital Leases | 32,131 |
2022, Operating and Capital Leases | 27,504 |
Thereafter, Operating and Capital Leases | 63,325 |
Total future minimum rental commitments, Operating and Capital Leases | $ 245,898 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - Yvonne Wiederhold [Member] $ in Millions | Feb. 14, 2011USD ($) |
Commitment And Contingencies [Line Items] | |
Amount delivered for plaintiff | $ 10.1 |
Percentage liable by company for plaintiff | 90.00% |
Litigation settlement, amount | $ 8.9 |
Income Before Provision for Inc
Income Before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 386,989 | $ 334,892 | $ 298,055 |
Foreign | 13,164 | 9,766 | 8,160 |
Income before provision for income taxes | $ 400,153 | $ 344,658 | $ 306,215 |
Differences Between Statutory I
Differences Between Statutory Income Tax Provision and Consolidated Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax provision based on the statutory rate | $ 140,054 | $ 120,630 | $ 107,175 |
State and local income taxes, net of related Federal income taxes | 11,520 | 9,787 | 8,589 |
Non-resident withholding and foreign income taxes | 20,210 | 17,275 | 15,750 |
Foreign tax and other tax credits | (23,324) | (20,049) | (18,345) |
Excess tax benefits from equity-based compensation | (27,227) | ||
Non-deductible expenses, net | 1,794 | 1,579 | 1,180 |
Unrecognized tax provision (benefit), net of related Federal income taxes | (173) | (98) | 110 |
Other | (606) | 856 | (1,033) |
Provision for income taxes | $ 122,248 | $ 129,980 | $ 113,426 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Schedule Of Income Taxes [Line Items] | |||||
PROVISION FOR INCOME TAXES | $ 122,248 | $ 129,980 | $ 113,426 | ||
Unrecognized tax benefits | 1,837 | 1,954 | $ 2,115 | $ 2,939 | |
Unrecognized tax benefits that would impact effective tax rate | 1,500 | 1,600 | |||
Unrecognized tax benefits, interest on income taxes accrued | $ 100 | $ 100 | |||
Corporate income tax rate | 35.00% | ||||
Scenario, Forecast [Member] | |||||
Schedule Of Income Taxes [Line Items] | |||||
Corporate income tax rate | 21.00% | ||||
Accounting Standards Update 2016-09 [Member] | |||||
Schedule Of Income Taxes [Line Items] | |||||
PROVISION FOR INCOME TAXES | $ (27,200) |
Components of Consolidated Prov
Components of Consolidated Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Income Tax Disclosure [Abstract] | |||
Current provision | $ 81,747 | $ 100,673 | $ 84,071 |
Deferred provision (benefit) | 6,732 | (3,096) | 862 |
Total provision for Federal income taxes | 88,479 | 97,577 | 84,933 |
Current provision | 14,131 | 15,091 | 11,892 |
Deferred provision (benefit) | (572) | 37 | 851 |
Total provision for state and local income taxes | 13,559 | 15,128 | 12,743 |
Provision for non-resident withholding and foreign income taxes | 20,210 | 17,275 | 15,750 |
Provision for income taxes | $ 122,248 | $ 129,980 | $ 113,426 |
Significant Components of Net D
Significant Components of Net Deferred Income Taxes (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Components Of Deferred Income Tax Assets And Liabilities [Line Items] | ||
Insurance reserves | $ 8,290 | $ 11,202 |
Equity compensation | 7,724 | 11,978 |
Other accruals and reserves | 7,187 | 18,741 |
Bad debt reserves | 309 | 1,005 |
Other | 3,164 | 5,732 |
Depreciation, amortization and asset basis differences | 4,823 | 6,352 |
Capitalized software | 18,522 | 25,869 |
Gain on debt extinguishments | 2,722 | 9,073 |
Total deferred Federal income tax liabilities | 26,067 | 41,294 |
Net deferred income taxes | 2,750 | 8,935 |
Internal Revenue Service (IRS) [Member] | ||
Components Of Deferred Income Tax Assets And Liabilities [Line Items] | ||
Total deferred Federal income tax assets | 26,674 | 48,658 |
Net deferred income taxes | 607 | 7,364 |
State and Local Jurisdiction [Member] | ||
Components Of Deferred Income Tax Assets And Liabilities [Line Items] | ||
Net deferred income taxes | $ 2,143 | $ 1,571 |
Unrecognized Tax Benefits (Deta
Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Income Tax Disclosure [Abstract] | |||
Balance, beginning | $ 1,954 | $ 2,115 | $ 2,939 |
Additions for tax positions of current year | 224 | 209 | 233 |
Additions for tax positions of prior years | 42 | 171 | |
Changes in prior year tax positions | (10) | (33) | (100) |
Settlements during the period | (27) | ||
Lapses of applicable statute of limitations | (373) | (337) | (1,101) |
Balance, ending | $ 1,837 | $ 1,954 | $ 2,115 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Nonqualified Deferred Compensation Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of defer on compensation | 40.00% | ||
401(K) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plans, general information | The Company has a retirement savings plan which qualifies under Internal Revenue Code Section 401(k). All employees of the Company who have completed 1,000 hours of service and are at least 21 years of age are eligible to participate in the plan. Effective January 1, 2018, employees of the Company who have completed 1,000 hours of service and are at least 18 years of age are eligible to participate in the plan. | ||
Service period of employees to be eligible for participation under the retirement savings plan (in hours) | 1000 hours | ||
Plan requires to match elective deferrals, higher | 100.00% | ||
Employee's elective deferrals higher percentage | 3.00% | ||
Plan requires to match elective deferrals, lower | 50.00% | ||
Employee's elective deferrals lower percentage | 2.00% | ||
Contributions to the plan, value | $ 6.1 | $ 5.2 | $ 4.6 |
Employee Stock Purchase Discount Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions to the plan, value | $ 0.7 | $ 0.5 | $ 0.4 |
Percentage of wages deduction from eligible employees | 15.00% | ||
Percentage of face value on stock purchase | 85.00% | ||
Shares purchased on the open market | 21,744 | 23,317 | 23,994 |
Weighted-average price of shares purchased on the open market | $ 188.57 | $ 131.74 | $ 105.16 |
Financial Instruments With Of55
Financial Instruments With Off-Balance Sheet Risk - Additional Information (Detail) - USD ($) | Dec. 31, 2017 | Jan. 01, 2017 |
Debt Disclosure [Abstract] | ||
Letters of credit | $ 46,700,000 | $ 44,300,000 |
Potential future payments | $ 1,500,000 | $ 1,000,000 |
Equity Incentive Plans - Additi
Equity Incentive Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-cash compensation expense | $ 20,713,000 | $ 18,564,000 | $ 17,623,000 | ||
Deferred tax benefit related to non-cash compensation expense | $ 5,200,000 | ||||
Stock options outstanding | 2,238,114 | 2,498,310 | 3,323,476 | 3,590,115 | |
Total intrinsic value of stock options exercised | $ 62,000,000 | $ 128,000,000 | $ 41,700,000 | ||
Cash received from exercise of stock options | 6,099,000 | 15,234,000 | 4,814,000 | ||
Tax benefit realized from stock options exercised | $ 23,000,000 | 46,100,000 | 14,700,000 | ||
Restricted stock granted | [1] | 72,250 | |||
General and Administrative Expense [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-cash compensation expense | $ 6,800,000 | 4,900,000 | 3,900,000 | ||
Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost | $ 8,100,000 | ||||
Weighted average period over which the unrecognized compensation will be recognized | 2 years 6 months | ||||
Performance Based Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-cash compensation expense | $ 13,100,000 | $ 12,800,000 | $ 12,800,000 | ||
Unrecognized compensation cost | $ 24,100,000 | ||||
Vesting period of grant (in years) | 4 years | 4 years | 4 years | ||
Employees [Member] | Performance Based Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock granted | 67,840 | 90,730 | 88,250 | ||
Board of Directors [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock granted | 4,410 | 6,920 | 8,350 | ||
Vesting period of grant (in years) | 1 year | ||||
2004 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized | 15,600,000 | ||||
Number of shares available for grant | 2,845,095 | ||||
Stock options outstanding | 2,238,114 | ||||
Equity Incentive Plan 2009 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity incentive plans options expiration period (in years) | 10 years | ||||
Equity incentive plans vesting period of grant (within years) | 5 years | ||||
Equity Incentive Plan from 2009 to 2012 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity incentive plans options expiration period (in years) | 10 years | ||||
Equity incentive plans vesting period of grant (within years) | 3 years | ||||
Equity Incentive Plan Two Thousand Thirteen and Two Thousand Seventeen [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity incentive plans options expiration period (in years) | 10 years | ||||
Equity incentive plans vesting period of grant (within years) | 4 years | ||||
Restricted Stock Units (RSUs) [Member] | Board of Directors [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-cash compensation expense | $ 800,000 | $ 900,000 | $ 900,000 | ||
Restricted Stock Units (RSUs) [Member] | Board of Directors [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost | $ 100,000 | ||||
[1] | The weighted average grant date fair value for performance-based restricted shares granted was calculated based on the market price on the grant dates. Certain tranches will ultimately be valued when the performance condition is established for each tranche, which generally occurs in the fourth quarter of each fiscal year. |
Stock Options Activity Related
Stock Options Activity Related to Equity Incentive Plans (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Common Stock Options Outstanding | |||
Common Stock Options, beginning balance | 2,498,310 | 3,323,476 | 3,590,115 |
Common Stock Options, granted | 126,720 | 233,280 | 193,970 |
Common Stock Options, cancelled | (28,991) | (12,798) | (32,176) |
Common Stock Options, exercised | (357,925) | (1,045,648) | (428,433) |
Common Stock Options, ending balance | 2,238,114 | 2,498,310 | 3,323,476 |
Common Stock Options, Exercisable at end of period | 1,827,568 | ||
Common Stock Options Weighted Average Exercise Price | |||
Weighted Average Exercise Price, beginning balance | $ 43.54 | $ 28.57 | $ 22.47 |
Weighted Average Exercise Price, Stock options granted | 201.19 | 129.42 | 111.63 |
Weighted Average Exercise Price, Stock options cancelled | 101.97 | 104.23 | 73.55 |
Weighted Average Exercise Price, Stock options exercised | 17.05 | 14.38 | 11.70 |
Weighted Average Exercise Price, ending balance | 55.94 | $ 43.54 | $ 28.57 |
Weighted Average Exercise Price, Exercisable at end of period | $ 36.61 | ||
Weighted Average Remaining Life (Years) | 4 years 8 months 12 days | ||
Weighted Average Remaining Life (Years), Exercisable at end of period | 3 years 10 months 25 days | ||
Stock options, Aggregate Intrinsic Value, ending balance | $ 299,518 | ||
Stock options, Aggregate Intrinsic Value, Exercisable at end of period | $ 278,438 |
Stock Options Valuation Assumpt
Stock Options Valuation Assumptions (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Risk-free interest rate | 2.00% | 1.30% | 1.70% |
Expected life (years) | 5 years 6 months | 5 years 6 months | 5 years 6 months |
Expected volatility | 25.80% | 26.00% | 28.40% |
Expected dividend yield | 0.90% | 1.20% | 1.10% |
Weighted average fair value per stock option | $ 49.57 | $ 29.59 | $ 28.45 |
Restricted Stock and Performanc
Restricted Stock and Performance-Based Restricted Stock Activity Related to Equity Incentive Plans (Detail) | 12 Months Ended | |
Dec. 31, 2017$ / sharesshares | ||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Restricted Stock, Nonvested Shares at beginning of period | shares | 276,220 | |
Restricted Stock, Nonvested Shares granted | shares | 72,250 | [1] |
Restricted Stock, Nonvested Shares cancelled | shares | (16,109) | |
Restricted Stock, Nonvested Shares vested | shares | (137,757) | |
Restricted Stock, Nonvested Shares at end of period | shares | 194,604 | |
Weighted Average Grant Date Fair Value at beginning of period | $ / shares | $ 97.48 | |
Weighted Average Grant Date Fair Value, granted | $ / shares | 205.21 | [1] |
Weighted Average Grant Date Fair Value, cancelled | $ / shares | 115.71 | |
Weighted Average Grant Date Fair Value, vested | $ / shares | 80.55 | |
Weighted Average Grant Date Fair Value at end of period | $ / shares | $ 147.94 | |
[1] | The weighted average grant date fair value for performance-based restricted shares granted was calculated based on the market price on the grant dates. Certain tranches will ultimately be valued when the performance condition is established for each tranche, which generally occurs in the fourth quarter of each fiscal year. |
Capital Structure - Additional
Capital Structure - Additional Information (Detail) - USD ($) | Oct. 30, 2015 | Oct. 27, 2015 | Mar. 27, 2016 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | Aug. 02, 2017 | Jul. 27, 2017 | Oct. 23, 2015 |
Components Of Common Stock [Line Items] | |||||||||
Share repurchase program, approved amount | $ 1,250,000,000 | ||||||||
Common stock repurchased and retired (in shares) | 5,576,249 | 2,816,716 | 6,152,918 | ||||||
Repurchased common stock, value | $ 1,064,253,000 | $ 300,250,000 | $ 738,557,000 | ||||||
Stock repurchase remaining authorized repurchase amount | $ 198,500,000 | ||||||||
Common stock, shares authorized | 170,000,000 | 170,000,000 | |||||||
ASR Agreement on August 03 2017 [Member] | |||||||||
Components Of Common Stock [Line Items] | |||||||||
Accelerated share repurchase agreement | $ 1,000,000,000 | $ 1,000,000,000 | |||||||
Common stock repurchased and retired (in shares) | 5,218,670 | ||||||||
Common stock repurchased and retired, average price | $ 191.62 | ||||||||
ASR Agreement on October 27 2015 [Member] | |||||||||
Components Of Common Stock [Line Items] | |||||||||
Common stock repurchased and retired (in shares) | 456,936 | 5,315,930 | |||||||
Common stock repurchased and retired, average price | $ 112.87 | ||||||||
Voting [Member] | |||||||||
Components Of Common Stock [Line Items] | |||||||||
Common stock, shares authorized | 160,000,000 | ||||||||
Non-Voting [Member] | |||||||||
Components Of Common Stock [Line Items] | |||||||||
Common stock, shares authorized | 10,000,000 | ||||||||
2017 Recapitalization [Member] | |||||||||
Components Of Common Stock [Line Items] | |||||||||
Share repurchase program, approved amount | $ 1,250,000,000 | ||||||||
2017 Recapitalization [Member] | ASR Agreement on August 03 2017 [Member] | |||||||||
Components Of Common Stock [Line Items] | |||||||||
Stock Repurchased During Period Value | $ 1,000,000,000 | ||||||||
2015 Recapitalization [Member] | |||||||||
Components Of Common Stock [Line Items] | |||||||||
Share repurchase program, approved amount | $ 800,000,000 | ||||||||
Stock Repurchased During Period Value | $ 600,000,000 | ||||||||
Accelerated share repurchase agreement | $ 600,000,000 | ||||||||
Stock Repurchased During Period Shares | 4,858,994 |
Share Components of Outstanding
Share Components of Outstanding Common Stock (Detail) - shares | Dec. 31, 2017 | Jan. 01, 2017 |
Components Of Common Stock [Line Items] | ||
Total Common Stock | 42,898,329 | 48,100,143 |
Voting [Member] | ||
Components Of Common Stock [Line Items] | ||
Total Common Stock | 42,881,905 | 48,083,721 |
Non-Voting [Member] | ||
Components Of Common Stock [Line Items] | ||
Total Common Stock | 16,424 | 16,422 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Financial Information by Operat
Financial Information by Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Sep. 10, 2017 | Jun. 18, 2017 | Mar. 26, 2017 | Sep. 11, 2016 | Jun. 19, 2016 | Mar. 27, 2016 | Dec. 31, 2017 | Jan. 01, 2017 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 643,642 | $ 628,611 | $ 624,217 | $ 566,677 | $ 547,341 | $ 539,175 | $ 891,509 | $ 819,435 | $ 2,787,979 | $ 2,472,628 | $ 2,216,528 |
Segment Income | 583,788 | 511,609 | 456,672 | ||||||||
INCOME FROM OPERATIONS | 521,232 | 454,042 | 405,439 | ||||||||
Capital Expenditures | 90,257 | 61,537 | 62,365 | ||||||||
Supply Chain [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,739,038 | 1,544,345 | 1,383,161 | ||||||||
International Franchise [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 206,708 | 176,999 | 163,643 | ||||||||
Operating Segments [Member] | Domestic Stores [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 842,233 | 751,284 | 669,724 | ||||||||
Segment Income | 306,406 | 271,794 | 240,942 | ||||||||
INCOME FROM OPERATIONS | 298,852 | 261,826 | 233,248 | ||||||||
Capital Expenditures | 20,579 | 18,225 | 25,120 | ||||||||
Operating Segments [Member] | Supply Chain [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,874,943 | 1,669,000 | 1,495,308 | ||||||||
Segment Income | 163,077 | 144,130 | 127,155 | ||||||||
INCOME FROM OPERATIONS | 151,622 | 133,745 | 117,185 | ||||||||
Capital Expenditures | 34,123 | 11,527 | 9,928 | ||||||||
Operating Segments [Member] | International Franchise [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 206,708 | 176,999 | 163,643 | ||||||||
Segment Income | 161,263 | 138,487 | 130,650 | ||||||||
INCOME FROM OPERATIONS | 161,066 | 138,306 | 130,601 | ||||||||
Capital Expenditures | 28 | 642 | |||||||||
Intersegment Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | (135,905) | (124,655) | (112,147) | ||||||||
Segment Reconciling [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment Income | (46,958) | (42,802) | (42,075) | ||||||||
INCOME FROM OPERATIONS | (90,308) | (79,835) | (75,595) | ||||||||
Capital Expenditures | $ 35,527 | $ 31,143 | $ 27,317 |
Reconciliation of Total Segment
Reconciliation of Total Segment Income to Consolidated Income Before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Segment Reconciliation [Abstract] | |||
Total Segment Income | $ 583,788 | $ 511,609 | $ 456,672 |
Depreciation and amortization | (44,369) | (38,140) | (32,434) |
Gains (losses) on sale/disposal of assets | 3,148 | (863) | (316) |
Non-cash compensation expense | (20,713) | (18,564) | (17,623) |
Recapitalization-related expenses | (622) | (860) | |
INCOME FROM OPERATIONS | 521,232 | 454,042 | 405,439 |
INTEREST INCOME | 1,462 | 685 | 313 |
INTEREST EXPENSE | (122,541) | (110,069) | (99,537) |
Income before provision for income taxes | $ 400,153 | $ 344,658 | $ 306,215 |
Identifiable Asset Information
Identifiable Asset Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Asset | $ 836,753 | $ 716,295 |
Domestic Stores [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Asset | 96,771 | 89,220 |
Domestic Supply Chain [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Asset | 206,059 | 172,210 |
Total Domestic Assets [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Asset | 302,830 | 261,430 |
International Franchise [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Asset | 19,728 | 17,436 |
International Supply Chain [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Asset | 24,925 | 19,368 |
Total International Assets [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Asset | 44,653 | 36,804 |
Segment Reconciling [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Asset | $ 489,270 | $ 418,061 |
Goodwill (Detail)
Goodwill (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 |
Segment Reporting Information [Line Items] | ||
Goodwill | $ 15,423 | $ 16,058 |
Domestic Stores [Member] | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 14,356 | 14,991 |
Supply Chain [Member] | ||
Segment Reporting Information [Line Items] | ||
Goodwill | $ 1,067 | $ 1,067 |
Sale and Closure of Company-O67
Sale and Closure of Company-Owned Stores - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)Store | Jan. 01, 2017USD ($)Store | Jan. 03, 2016USD ($)Store | |
Sales Concentration [Line Items] | |||
Number of company-owned stores sold | Store | 17 | 4 | |
Pre-tax gain on sale of assets, net of goodwill reduction, charged to general and administrative expenses | $ 4,000 | $ 700 | |
Reduction of goodwill related to sale of stores | 600 | 200 | |
Proceeds from sale of assets | 6,835 | $ 4,936 | 12,724 |
Number of stores closed | Store | 1 | ||
Reduction of goodwill related to restructuring | $ 100 | ||
Discontinued Operations Disposed of by Sale Two Thousand Seventeen [Member] | |||
Sales Concentration [Line Items] | |||
Proceeds from sale of assets | $ 6,800 | ||
Discontinued Operations Disposed of by Sale Two Thousand Fifteen [Member] | |||
Sales Concentration [Line Items] | |||
Proceeds from sale of assets | $ 1,200 |
Periodic Financial Data (Detail
Periodic Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Sep. 10, 2017 | Jun. 18, 2017 | Mar. 26, 2017 | Sep. 11, 2016 | Jun. 19, 2016 | Mar. 27, 2016 | Dec. 31, 2017 | Jan. 01, 2017 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Quarterly Financial Data [Abstract] | |||||||||||
Total revenues | $ 643,642 | $ 628,611 | $ 624,217 | $ 566,677 | $ 547,341 | $ 539,175 | $ 891,509 | $ 819,435 | $ 2,787,979 | $ 2,472,628 | $ 2,216,528 |
Operating margin | 198,478 | 192,845 | 193,816 | 173,903 | 171,838 | 167,216 | 280,852 | 254,734 | 865,991 | 767,691 | 683,131 |
Income before provision for income taxes | 84,551 | 88,532 | 90,514 | 75,814 | 78,692 | 72,842 | 136,556 | 117,310 | 400,153 | 344,658 | 306,215 |
Net income | $ 56,368 | $ 65,741 | $ 62,469 | $ 47,232 | $ 49,261 | $ 45,451 | $ 93,327 | $ 72,734 | $ 277,905 | $ 214,678 | $ 192,789 |
Earnings per common share - basic | $ 1.22 | $ 1.37 | $ 1.31 | $ 0.98 | $ 1 | $ 0.91 | $ 2.17 | $ 1.52 | $ 6.05 | $ 4.41 | $ 3.58 |
Earnings per common share - diluted | 1.18 | 1.32 | 1.26 | 0.96 | 0.98 | 0.89 | 2.09 | 1.48 | 5.83 | 4.30 | 3.47 |
Common stock dividends declared per share | $ 0.46 | $ 0.46 | $ 0.46 | $ 0.38 | $ 0.38 | $ 0.38 | $ 0.46 | $ 0.38 | $ 1.84 | $ 1.52 | $ 1.24 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | Feb. 14, 2018 | Sep. 10, 2017 | Jun. 18, 2017 | Mar. 26, 2017 | Sep. 11, 2016 | Jun. 19, 2016 | Mar. 27, 2016 | Dec. 31, 2017 | Jan. 01, 2017 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | Jul. 27, 2017 |
Subsequent Event [Line Items] | |||||||||||||
Dividends declared per share | $ 0.46 | $ 0.46 | $ 0.46 | $ 0.38 | $ 0.38 | $ 0.38 | $ 0.46 | $ 0.38 | $ 1.84 | $ 1.52 | $ 1.24 | ||
Share repurchase program, approved amount | $ 1,250,000,000 | ||||||||||||
Stock repurchase remaining authorized repurchase amount | $ 198,500,000 | $ 198,500,000 | |||||||||||
Subsequent Event [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Dividends declared per share | $ 0.55 | ||||||||||||
Dividend declaration date | Feb. 14, 2018 | ||||||||||||
Record date of dividend | Mar. 15, 2018 | ||||||||||||
Dividend payable date | Mar. 30, 2018 | ||||||||||||
Share repurchase program, approved amount | $ 750,000,000 |
Parent Company Condensed Balanc
Parent Company Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | Dec. 28, 2014 |
ASSETS: | ||||
Cash | $ 35,768 | $ 42,815 | $ 133,449 | $ 30,855 |
Total assets | 836,753 | 716,295 | ||
LIABILITIES: | ||||
Total liabilities | 3,572,137 | 2,599,438 | ||
STOCKHOLDERS' DEFICIT: | ||||
Common stock, par value $0.01 per share; 170,000,000 shares authorized; 42,898,329 in 2017 and 48,100,143 in 2016 issued and outstanding | 429 | 481 | ||
Preferred stock, par value $0.01 per share; 5,000,000 shares authorized, none issued | ||||
Additional paid-in capital | 5,654 | 1,006 | ||
Retained deficit | (2,739,437) | (1,881,520) | ||
Accumulated other comprehensive loss | (2,030) | (3,110) | ||
Total stockholders' deficit | (2,735,384) | (1,883,143) | ||
Total liabilities and stockholders' deficit | 836,753 | 716,295 | ||
Parent Company [Member] | ||||
ASSETS: | ||||
Cash | 6 | 6 | $ 6 | $ 6 |
Total assets | 6 | 6 | ||
LIABILITIES: | ||||
Equity in net deficit of subsidiaries | 2,735,384 | 1,883,143 | ||
Due to subsidiary | 6 | 6 | ||
Total liabilities | 2,735,390 | 1,883,149 | ||
STOCKHOLDERS' DEFICIT: | ||||
Common stock, par value $0.01 per share; 170,000,000 shares authorized; 42,898,329 in 2017 and 48,100,143 in 2016 issued and outstanding | 429 | 481 | ||
Preferred stock, par value $0.01 per share; 5,000,000 shares authorized, none issued | ||||
Additional paid-in capital | 5,654 | 1,006 | ||
Retained deficit | (2,739,437) | (1,881,520) | ||
Accumulated other comprehensive loss | (2,030) | (3,110) | ||
Total stockholders' deficit | (2,735,384) | (1,883,143) | ||
Total liabilities and stockholders' deficit | $ 6 | $ 6 |
Parent Company Condensed Bala71
Parent Company Condensed Balance Sheets (Parenthetical) (Detail) - $ / shares | Dec. 31, 2017 | Jan. 01, 2017 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 170,000,000 | 170,000,000 |
Common stock, shares issued | 42,898,329 | 48,100,143 |
Common stock, shares outstanding | 42,898,329 | 48,100,143 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Parent Company [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 170,000,000 | 170,000,000 |
Common stock, shares issued | 42,898,329 | 48,100,143 |
Common stock, shares outstanding | 42,898,329 | 48,100,143 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Parent Company Condensed Statem
Parent Company Condensed Statements of Income and Comprehensive Income (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Sep. 10, 2017 | Jun. 18, 2017 | Mar. 26, 2017 | Sep. 11, 2016 | Jun. 19, 2016 | Mar. 27, 2016 | Dec. 31, 2017 | Jan. 01, 2017 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Total revenues | $ 643,642 | $ 628,611 | $ 624,217 | $ 566,677 | $ 547,341 | $ 539,175 | $ 891,509 | $ 819,435 | $ 2,787,979 | $ 2,472,628 | $ 2,216,528 |
INCOME FROM OPERATIONS | 521,232 | 454,042 | 405,439 | ||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 84,551 | 88,532 | 90,514 | 75,814 | 78,692 | 72,842 | 136,556 | 117,310 | 400,153 | 344,658 | 306,215 |
PROVISION FOR INCOME TAXES | 122,248 | 129,980 | 113,426 | ||||||||
Net income | $ 56,368 | $ 65,741 | $ 62,469 | $ 47,232 | $ 49,261 | $ 45,451 | $ 93,327 | $ 72,734 | 277,905 | 214,678 | 192,789 |
COMPREHENSIVE INCOME | $ 278,985 | $ 215,116 | $ 191,902 | ||||||||
EARNINGS PER SHARE: | |||||||||||
Common Stock - basic | $ 1.22 | $ 1.37 | $ 1.31 | $ 0.98 | $ 1 | $ 0.91 | $ 2.17 | $ 1.52 | $ 6.05 | $ 4.41 | $ 3.58 |
Common Stock - diluted | $ 1.18 | $ 1.32 | $ 1.26 | $ 0.96 | $ 0.98 | $ 0.89 | $ 2.09 | $ 1.48 | $ 5.83 | $ 4.30 | $ 3.47 |
Parent Company [Member] | |||||||||||
REVENUES | $ 0 | $ 0 | $ 0 | ||||||||
Total revenues | 0 | 0 | 0 | ||||||||
OPERATING EXPENSES | 0 | 0 | 0 | ||||||||
Total operating expenses | 0 | 0 | 0 | ||||||||
INCOME FROM OPERATIONS | 0 | 0 | 0 | ||||||||
Equity earnings in subsidiaries | 277,905 | 214,678 | 192,789 | ||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 277,905 | 214,678 | 192,789 | ||||||||
PROVISION FOR INCOME TAXES | 0 | 0 | 0 | ||||||||
Net income | 277,905 | 214,678 | 192,789 | ||||||||
COMPREHENSIVE INCOME | $ 278,985 | $ 215,116 | $ 191,902 | ||||||||
EARNINGS PER SHARE: | |||||||||||
Common Stock - basic | $ 6.05 | $ 4.41 | $ 3.58 | ||||||||
Common Stock - diluted | $ 5.83 | $ 4.30 | $ 3.47 |
Parent Company Condensed Stat73
Parent Company Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net cash provided by operating activities | $ 339,036 | $ 287,273 | $ 291,786 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Net cash provided by investing activities | (149,004) | (836) | (109,292) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Payments of common stock dividends | (84,298) | (73,925) | (80,329) |
Purchase of common stock | (1,064,253) | (300,250) | (738,557) |
Other | (205) | (438) | |
Net cash used in financing activities | (197,145) | (375,792) | (80,936) |
CHANGE IN CASH AND CASH EQUIVALENTS | (7,047) | (90,634) | 102,594 |
CASH AND CASH EQUIVALENTS, AT BEGINNING OF PERIOD | 42,815 | 133,449 | 30,855 |
CASH AND CASH EQUIVALENTS, AT END OF PERIOD | 35,768 | 42,815 | 133,449 |
Parent Company [Member] | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net cash provided by operating activities | 299,576 | 281,731 | 226,912 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Dividends from subsidiaries | 852,325 | 82,856 | 594,591 |
Net cash provided by investing activities | 852,325 | 82,856 | 594,591 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Payments of common stock dividends | (84,298) | (73,925) | (80,329) |
Purchase of common stock | (1,064,253) | (300,250) | (738,557) |
Other | (3,350) | 9,588 | (2,617) |
Net cash used in financing activities | (1,151,901) | (364,587) | (821,503) |
CHANGE IN CASH AND CASH EQUIVALENTS | 0 | 0 | 0 |
CASH AND CASH EQUIVALENTS, AT BEGINNING OF PERIOD | 6 | 6 | 6 |
CASH AND CASH EQUIVALENTS, AT END OF PERIOD | $ 6 | $ 6 | $ 6 |
Condensed Financial Information
Condensed Financial Information of The Registrant - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||
PROVISION FOR INCOME TAXES | $ 122,248 | $ 129,980 | $ 113,426 |
Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
PROVISION FOR INCOME TAXES | 0 | $ 0 | $ 0 |
Accounting Standards Update 2016-09 [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
PROVISION FOR INCOME TAXES | (27,200) | ||
Accounting Standards Update 2016-09 [Member] | Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
PROVISION FOR INCOME TAXES | $ 27,200 |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts (Detail) - Allowance for Doubtful Accounts Receivable [Member] - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance Beginning of Year | $ 2,342 | $ 2,662 | $ 3,361 | |
Provision (Benefit) | (88) | (51) | (582) | |
Additions and Deductions from Reserves | [1] | (830) | (269) | (109) |
Translation Adjustments | (8) | |||
Balance End of Year | $ 1,424 | $ 2,342 | $ 2,662 | |
[1] | Consists primarily of write-offs, recoveries of bad debt and certain reclassifications. |