Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 30, 2018 | Feb. 14, 2019 | Jun. 17, 2018 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 30, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
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 | --12-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Public Float | $ 11,546,079,722 | ||
Entity Common Stock, Shares Outstanding | 41,040,704 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 25,438 | $ 35,768 |
Restricted cash and cash equivalents | 166,993 | 191,762 |
Accounts receivable, net of reserves of $1,879 in 2018 and $1,424 in 2017 | 190,091 | 173,677 |
Inventories | 45,975 | 39,961 |
Prepaid expenses and other | 25,710 | 18,389 |
Advertising fund assets, restricted | 112,744 | 120,223 |
Total current assets | 566,951 | 579,780 |
Property, plant and equipment: | ||
Land and buildings | 41,147 | 29,171 |
Leasehold and other improvements | 170,498 | 128,613 |
Equipment | 243,654 | 216,599 |
Construction in progress | 31,822 | 32,482 |
Property, plant and equipment, Gross | 487,121 | 406,865 |
Accumulated depreciation and amortization | (252,182) | (237,279) |
Property, plant and equipment, net | 234,939 | 169,586 |
Other assets: | ||
Investments in marketable securities, restricted | 8,718 | 8,119 |
Goodwill | 14,919 | 15,423 |
Capitalized software, net of accumulated amortization of $89,161 in 2018 and $78,696 in 2017 | 63,809 | 52,823 |
Other assets, net of accumulated amortization of $776 in 2018 and $776 in 2017 | 12,523 | 8,272 |
Deferred income taxes | 5,526 | 2,750 |
Total other assets | 105,495 | 87,387 |
Total assets | 907,385 | 836,753 |
Current liabilities: | ||
Current portion of long-term debt | 35,893 | 32,324 |
Accounts payable | 92,546 | 106,894 |
Accrued compensation | 40,962 | 37,417 |
Accrued interest | 25,981 | 22,095 |
Insurance reserves | 22,210 | 20,754 |
Advertising fund liabilities | 107,150 | 120,223 |
Other accrued liabilities | 55,001 | 58,578 |
Total current liabilities | 379,743 | 398,285 |
Long-term liabilities: | ||
Long-term debt, less current portion | 3,495,691 | 3,121,490 |
Insurance reserves | 31,065 | 30,611 |
Other accrued liabilities | 40,807 | 21,751 |
Total long-term liabilities | 3,567,563 | 3,173,852 |
Total liabilities | 3,947,306 | 3,572,137 |
Commitments and contingencies | ||
Stockholders' deficit | ||
Common stock, par value $0.01 per share; 170,000,000 shares authorized; 40,977,561 in 2018 and 42,898,329 in 2017 issued and outstanding | 410 | 429 |
Preferred stock, par value $0.01 per share; 5,000,000 shares authorized, none issued | ||
Additional paid-in capital | 569 | 5,654 |
Retained deficit | (3,036,471) | (2,739,437) |
Accumulated other comprehensive loss | (4,429) | (2,030) |
Total stockholders' deficit | (3,039,921) | (2,735,384) |
Total liabilities and stockholders' deficit | $ 907,385 | $ 836,753 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, reserves | $ 1,879 | $ 1,424 |
Capitalized software, accumulated amortization | 89,161 | 78,696 |
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 | 40,977,561 | 42,898,329 |
Common stock, shares outstanding | 40,977,561 | 42,898,329 |
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. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Revenues: | |||
Revenue | $ 3,432,867 | $ 2,787,979 | $ 2,472,628 |
Cost of sales: | |||
Cost of sales | 2,130,188 | 1,921,988 | 1,704,937 |
Operating margin | 1,302,679 | 865,991 | 767,691 |
General and administrative | 372,464 | 344,759 | 313,649 |
U.S. franchise advertising | 358,526 | 0 | 0 |
Income from operations | 571,689 | 521,232 | 454,042 |
Interest income | 3,334 | 1,462 | 685 |
Interest expense | (146,345) | (122,541) | (110,069) |
Income before provision for income taxes | 428,678 | 400,153 | 344,658 |
Provision for income taxes | 66,706 | 122,248 | 129,980 |
Net income | $ 361,972 | $ 277,905 | $ 214,678 |
Earnings per share: | |||
Common Stock – basic | $ 8.65 | $ 6.05 | $ 4.41 |
Common Stock – diluted | 8.35 | 5.83 | 4.30 |
Dividends declared per share | $ 2.20 | $ 1.84 | $ 1.52 |
Domestic Stores [Member] | U.S. Company-owned stores [Member] | |||
Revenues: | |||
Revenue | $ 514,804 | $ 490,846 | $ 439,024 |
Cost of sales: | |||
Cost of sales | 398,158 | 377,674 | 331,860 |
Domestic Stores [Member] | U.S. franchise royalties and fees [Member] | |||
Revenues: | |||
Revenue | 391,493 | 351,387 | 312,260 |
Domestic Stores [Member] | U.S. franchise advertising [Member] | |||
Revenues: | |||
Revenue | 358,526 | 0 | 0 |
Supply Chain [Member] | |||
Revenues: | |||
Revenue | 1,943,297 | 1,739,038 | 1,544,345 |
Cost of sales: | |||
Cost of sales | 1,732,030 | 1,544,314 | 1,373,077 |
International Franchise [Member] | International franchise royalties and fees [Member] | |||
Revenues: | |||
Revenue | $ 224,747 | $ 206,708 | $ 176,999 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 361,972 | $ 277,905 | $ 214,678 |
Other comprehensive income (loss), before tax: | |||
Currency translation adjustment | (2,048) | 1,080 | (94) |
Tax attributes of items in other comprehensive income (loss): | |||
Currency translation adjustment | 0 | 0 | 532 |
Other comprehensive income (loss), net of tax | (2,048) | 1,080 | 438 |
Comprehensive income | $ 359,924 | $ 278,985 | $ 215,116 |
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 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 | $ 481 | 1,006 | (1,881,520) | (3,110) | |
Balance (in shares) at Jan. 01, 2017 | 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 | |||
Net income | $ 361,972 | 361,972 | |||
Common stock dividends and equivalents | (92,211) | ||||
Issuance of common stock, net | $ 1 | ||||
Issuance of common stock, net, (in shares) | 79,868 | ||||
Tax payments for restricted stock upon vesting | (6,962) | ||||
Tax payments for restricted stock upon vesting, (in shares) | (27,308) | ||||
Purchases of common stock | $ (24) | (30,743) | (560,445) | ||
Purchases of common stock, (in shares) | (2,387,430) | ||||
Exercises of stock options | $ 4 | 9,828 | |||
Exercises of stock options, (in shares) | 414,102 | 414,102 | |||
Non-cash compensation expense | 22,792 | ||||
New accounting pronouncement | Revenue Recognition Standard [Member] | (6,701) | ||||
New accounting pronouncement | Reclassification of Certain Tax Effects [Member] | 351 | (351) | |||
Currency translation adjustment, net of tax | (2,048) | ||||
Balance at Dec. 30, 2018 | $ (3,039,921) | $ 410 | $ 569 | $ (3,036,471) | $ (4,429) |
Balance (in shares) at Dec. 30, 2018 | 40,977,561 | 40,977,561 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 361,972 | $ 277,905 | $ 214,678 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 53,665 | 44,369 | 38,140 |
(Gain) loss on sale/disposal of assets | (4,737) | (3,148) | 863 |
Amortization of debt issuance costs | 8,033 | 10,976 | 6,418 |
(Benefit) provision for deferred income taxes | (872) | 6,160 | (3,059) |
Non-cash compensation expense | 22,792 | 20,713 | 18,564 |
Excess tax benefits from equity-based compensation | (23,786) | (27,227) | (48,129) |
Provision (benefit) for losses and accounts and notes receivable | 899 | (277) | (224) |
Changes in operating assets and liabilities: | |||
Increase in accounts receivable | (18,172) | (22,649) | (18,724) |
(Increase) decrease in inventories, prepaid expenses and other | (12,455) | 1,527 | (2,947) |
Increase in accounts payable and accrued liabilities | 10,010 | 22,267 | 78,929 |
Increase in insurance reserves | 2,174 | 8,420 | 2,764 |
Changes in advertising fund assets and liabilities, restricted | (5,352) | 2,225 | 5,187 |
Net cash provided by operating activities | 394,171 | 341,261 | 292,460 |
Cash flows from investing activities: | |||
Capital expenditures | (119,888) | (90,011) | (58,555) |
Proceeds from sale of assets | 8,367 | 6,835 | 4,936 |
Maturities of advertising fund investments, restricted | 94,007 | 0 | 0 |
Purchases of advertising fund investments, restricted | (70,152) | 0 | 0 |
Other | (591) | (562) | (1,661) |
Net cash used in investing activities | (88,257) | (83,738) | (55,280) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 970,000 | 1,900,000 | 63,000 |
Repayments of long-term debt and capital lease obligations | (604,088) | (928,193) | (122,334) |
Proceeds from exercise of stock options | 9,832 | 6,099 | 15,234 |
Excess tax benefits from equity-based compensation | 0 | 0 | 48,129 |
Purchases of common stock | (591,212) | (1,064,253) | (300,250) |
Tax payments for restricted stock upon vesting | (6,962) | (9,449) | (5,646) |
Payments of common stock dividends and equivalents | (92,166) | (84,298) | (73,925) |
Cash paid for financing costs | (8,207) | (16,846) | |
Other | 0 | (205) | 0 |
Net cash used in financing activities | (322,803) | (197,145) | (375,792) |
Effect of exchange rate changes on cash | (538) | 66 | (1,279) |
Change in cash and cash equivalents, restricted cash and cash equivalents | (17,427) | 60,444 | (139,891) |
Cash and cash equivalents, beginning of period | 35,768 | 42,815 | 133,449 |
Restricted cash and cash equivalents, beginning of period | 191,762 | 126,496 | 180,940 |
Cash and cash equivalents included in advertising fund assets, restricted, beginning of period | 27,316 | 25,091 | 19,904 |
Cash and cash equivalents, restricted cash and cash equivalents and cash and cash equivalents included in advertising fund assets, restricted, beginning of period | 254,846 | 194,402 | 334,293 |
Cash and cash equivalents, end of period | 25,438 | 35,768 | 42,815 |
Restricted cash and cash equivalents, end of period | 166,993 | 191,762 | 126,496 |
Cash and cash equivalents included in advertising fund assets, restricted, end of period | 44,988 | 27,316 | 25,091 |
Cash and cash equivalents, restricted cash and cash equivalents and cash and cash equivalents included in advertising fund assets, restricted, end of period | $ 237,419 | $ 254,846 | $ 194,402 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 30, 2018 | |
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; (iii) receipt of royalties, advertising contributions and fees from U.S. Domino’s Pizza franchisees; and (iv) receipt of royalties and fees from 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 2018 fiscal year ended on December 30, 2018, the 2017 fiscal year ended on December 31, 2017 and the 2016 fiscal year ended on January 1, 2017. The 2018, 2017 and 2016 fiscal years all 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 30, 2018 includes approximately $130.3 million of restricted cash held for future principal and interest payments, $36.5 million of restricted cash held in a three-month interest reserve as required by the related debt agreements and $0.2 million of other restricted cash. As of December 30, 2018, the Company also held $45.0 million of advertising fund restricted cash and cash equivalents, which can only be used for activities that promote the Domino’s Pizza brand. 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. As of December 31, 2017, the Company also held $27.3 million of advertising fund restricted cash and cash equivalents, which can only be used for activities that promote the Domino’s Pizza brand. Inventories Inventories are valued at the lower of cost (on a first-in, first-out 2018 2017 Food $ 42,921 $ 36,645 Equipment and supplies 3,054 3,316 Inventories $ 45,975 $ 39,961 Other Assets Current and long-term other assets primarily include prepaid expenses such as insurance, rent and taxes, deposits, notes receivable, software licenses, 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 are 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 30, 2018 are capital lease assets of approximately $22.2 million, which are related to the leases of five supply chain centers and the lease of one Company-owned store. Included in accumulated depreciation and amortization as of December 30, 2018 is $6.7 million of accumulated amortization related to these leases. Included in land and buildings as of December 31, 2017 are capital lease assets of approximately $10.5 million, which are related to the lease of one supply chain center building and the lease of one Company-owned store. Included in accumulated depreciation and amortization as of December 31, 2017 is $6.2 million of accumulated amortization related to these leases. 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 $35.0 million, $29.6 million and $27.3 million in 2018, 2017 and 2016, 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 2018, 2017 or 2016. 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. 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 2018, 2017 and 2016. 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 $18.7 million, $14.8 million and $10.8 million in 2018, 2017 and 2016, respectively. As of December 30, 2018, scheduled amortization for the next five fiscal years for capitalized software that has been placed in service was approximately $16.6 million, $11.5 million, $7.7 million, $4.2 million and $1.7 million for 2019, 2020, 2021, 2022 and 2023, respectively. 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 2018, 2017 and 2015 Recapitalizations. See Note 4 for a description of the 2018, 2017 and 2015 Recapitalizations. Amortization is recorded 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 2018, 2017 and 2015 Recapitalizations, the Company recorded $8.2 million, $16.8 million and $17.4 million of debt issuance costs, respectively. In connection with 2018 Recapitalization, the Company repaid the 2015 Five-Year Fixed Rate Notes and expensed approximately $3.2 million for the remaining unamortized debt issuance costs associated with these notes. The remaining debt issuance costs are being amortized into interest expense over the expected terms of the 2018, 2017 and 2015 Notes, as described in Note 4. The Company expensed debt issuance costs of approximately $3.4 million, $5.7 million and $0.6 million in 2018, 2017 and 2016, respectively in connection with the write-off write-off 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 twice per year and differences between these estimated actuarial exposures and the Company’s recorded amounts are adjusted as appropriate. Contract Liabilities Contract liabilities consist of deferred franchise fees and deferred development fees. Changes in deferred franchise fees and deferred development fees in 2018 were as follows: Fiscal Year Ended (In thousands) December 30, 2018 Deferred franchise fees and deferred development fees at beginning of period $ 19,404 Revenue recognized during the period (5,235 ) New deferrals due to cash received and other 5,731 Deferred franchise fees and deferred development fees at end of period $ 19,900 The Company expects to recognize revenue of $4.0 million in 2019, $3.1 million in 2020, $2.8 million in 2021, $2.5 million in 2022, $2.2 million in 2023 and $5.3 million thereafter associated with the total deferred franchise fee and deferred development fee amount above. The Company has applied the sales-based royalty exemption which permits exclusion of variable consideration in the form of sales-based royalties from the disclosure of remaining performance obligations. 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 U.S. Company-owned stores revenues are comprised of retail sales of food through Company-owned Domino’s Pizza stores located in the U.S. and are recognized when the items are delivered to or carried out by customers. Customer payments are generally due at the time of sale. Sales taxes related to these sales are collected from customers and remitted to the appropriate taxing authority and are not reflected in the Company’s consolidated statements of income as revenue. U.S. franchise royalties and fees are primarily comprised of royalties and fees from Domino’s Pizza franchisees with operations in the U.S. Each franchisee is generally required to pay a 5.5% royalty fee on sales. In certain instances, the Company will collect lower rates based on area development agreements, sales initiatives and new store incentives. Royalty revenues are based on a percentage of franchise retail sales and are recognized when the items are delivered to or carried out by franchisees’ customers. U.S. franchise fee revenue primarily relates to per-transaction technology Supply chain revenues are primarily comprised of sales of food, equipment and supplies to franchised Domino’s Pizza stores located in the U.S. and Canada. Revenues from the sale of food are recognized upon delivery of the food to franchisees and payments for food purchases are generally due within 30 days of the shipping date. Revenues from the sale of equipment and supplies are recognized upon delivery or shipment of the related products to franchisees, based on shipping terms, and payments for equipment and supplies are generally due within 90 days of the shipping date. The Company also offers profit sharing rebates and volume discounts to its franchisees. Obligations for profit sharing rebates are calculated based on actual results of its supply chain centers and are recognized as a reduction to revenue. Volume discounts are based on annual sales. The Company estimates the amount that will be earned and records a reduction to revenue. International franchise royalties and fees are primarily comprised of royalties and fees from Domino’s Pizza franchisees outside of the U.S. Royalty revenues are recognized when the items are delivered to or carried out by franchise customers. Store opening fees received from international franchisees are recognized as revenue on a straight-line basis over the term of each respective franchise store agreement, which is typically ten years. Development fees received from international master franchisees are also deferred when amounts are received and are recognized as revenue on a straight-line basis over the term of the respective master franchise agreement, which is typically ten years. International franchise royalties and fees are invoiced at least quarterly and payments are generally due within 60 days. U.S. franchise advertising revenues are primarily comprised of contributions from Domino’s Pizza franchisees with operations in the U.S. to the Domino’s National Advertising Fund Inc. (“DNAF”), the Company’s consolidated not-for-profit subsidiary Reclassification of Revenues In the first quarter of 2018, the Company began managing its franchised stores in Alaska and Hawaii as part of its U.S. Stores segment (Note 11). Prior to 2018, the revenues from these franchised stores were included in the Company’s International Franchise segment (Note 11). International franchise royalties and fees revenues in 2017 and 2016 included $2.6 million and $2.3 million, respectively, of franchise revenues related to these stores. These amounts have not been reclassified to conform to the current year presentation due to immateriality. Disaggregation of Revenue Current accounting standards require that companies disaggregate revenue from contracts with customers into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The Company has included its revenues disaggregated in its consolidated statements of income to satisfy this requirement. Supply Chain Profit-Sharing Arrangements The Company enters into profit-sharing arrangements with U.S. 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 U.S. Stores (Note 11) are generally required to contribute 6% of sales to DNAF. U.S. franchise advertising costs are accrued and expensed when the related U.S. franchise advertising revenues are recognized, as DNAF is obligated to expend such revenues on advertising. Advertising costs funded by Company-owned stores are generally expensed as incurred and are included in general and administrative expense. The contributions from Company-owned stores that have not yet been expended are included in advertising fund assets, restricted on the Company’s consolidated balance sheet. As of December 30, 2018, advertising fund assets, restricted of $112.7 million included approximately $5.5 million of cash contributed from Company-owned stores that had not yet been expended and approximately $107.2 million of other assets which consisted of $95.1 million of cash, cash equivalents and investments, $15.3 million of accounts receivable and $2.3 million of prepaid expenses. U.S. franchise advertising costs expended by DNAF are included in U.S. franchise advertising expenses in the Company’s consolidated statement of income. Certain costs incurred by the Company on behalf of DNAF were included in general and administrative expense in years prior to 2018. Refer to the New Accounting Pronouncements section within Note 1 for the full impact of the adoption of ASC 606 on the Company’s financial statements. 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 2034. Rent expenses totaled approximately $62.5 million, $57.9 million and $49.9 million during 2018, 2017 and 2016, respectively. Common Stock Dividends The Company declared and paid dividends of approximately $92.2 million (or $2.20 per share) in 2018, approximately $84.2 million (or $1.84 per share) in 2017 and approximately $74.0 million (or $1.52 per share) in 2016. 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 $132.8 million, $107.4 million and $104.6 million during 2018, 2017 and 2016, respectively. Cash paid for income taxes was approximately $71.7 million, $122.6 million and $74.3 million in 2018, 2017 and 2016, respectively. The Company had $3.8 million, $4.0 million and $3.8 million of non-cash non-cash recorded non-cash financing non-cash build-to-suit New Accounting Pronouncements Recently Adopted Accounting Standards Accounting Standards Update 2014-09, Revenue from In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) The Company recognized the cumulative effect of initially applying ASC 606 as an adjustment to the opening balance of retained deficit. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company has determined that the store opening fees received from international franchisees do not relate to 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 store agreement, which is typically 10 years. In the past, the Company recognized such fees as revenue when the related store opened. An adjustment to beginning retained deficit and a corresponding contract liability of approximately $15.0 million (of which $2.4 million was current and $12.6 million was long-term) was 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 store agreement if the new guidance had been applied in the past. A deferred tax asset of $3.5 million related to this contract liability was also established on the date of adoption. 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, the Company’s consolidated not-for-profit subsidiary. DNAF Under the requirements of ASC 606, the Company determined that there are not performance obligations associated with the franchise advertising contributions received by DNAF that are separate from the Company’s U.S. royalty payment stream and as a result, these franchise contributions and the related expenses are presented gross in the Company’s consolidated statement of income and consolidated statement of cash flows. While this change materially impacted the gross amount of reported franchise revenues and expenses, the impact is generally expected to be an offsetting increase to both revenues and expenses such that the impact on income from operations and net income is not expected to be material. An adjustment to beginning retained deficit and advertising fund liabilities of approximately $6.4 million related to the timing of advertising expense recognition was recorded on the date of adoption. A deferred tax liability (which is reflected net against deferred tax assets in the consolidated balance sheet) of approximately $1.6 million related to this adjustment was also established on the date of adoption. The cumulative effects of the changes made to the Company’s consolidated balance sheet as of January 1, 2018 for the adoption of ASC 606 were as follows (in thousands): Balance at Adjustments Due to ASC 606 Balance at Assets Other assets: Deferred income taxes $ 2,750 $ 1,878 $ 4,628 Liabilities and stockholders’ deficit Current liabilities: Advertising fund liabilities 120,223 (6,425 ) 113,798 Other accrued liabilities 58,578 2,365 60,943 Long-term liabilities: Other accrued liabilities 21,751 12,639 34,390 Stockholders’ deficit: Retained deficit (2,739,437 ) (6,701 ) (2,746,138 ) In accordance with the new revenue standard requirements, the impact of adoption on the Company’s consolidated statement of income for 2018 and consolidated balance sheet as of December 30, 2018 was as follows (in thousands): Fiscal Year Ended December 30, 2018 As Reported Balances without the ASC 606 Effect of Change Higher/ (Lower) Revenues: U.S. franchise royalties and fees $ 391,493 $ 409,379 $ (17,886 ) International franchise royalties and fees 224,747 225,708 (961 ) U.S. franchise advertising 358,526 — 358,526 General and administrative 372,464 389,520 (17,056 ) U.S. franchise advertising 358,526 — 358,526 Income from operations 571,689 573,481 (1,792 ) Income before provision for income taxes 428,678 430,470 (1,792 ) Provision for income taxes 66,706 67,111 (405 ) Net income 361,972 363,359 (1,387 ) As of December 30, 2018 As Reported Balances without the ASC 606 Effect of Change Higher/ (Lower) Assets Other assets: Deferred income taxes $ 5,526 $ 3,243 $ 2,283 Liabilities and stockholders’ deficit Current liabilities: Advertising fund liabilities 107,150 112,744 (5,594 ) Other accrued liabilities 55,001 52,396 2,605 Long-term liabilities: Other accrued liabilities 40,807 27,447 13,360 Stockholders’ deficit: Retained deficit (3,036,471 ) (3,028,383 ) (8,088 ) ASU 2016-04, Liabilities (Subtopic 405-20) In March 2016, the FASB issued ASU 2016-04, Liabilities – Extinguishment of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products (“ASU 2016-04”). ASU 2016-04 aligns recognition 606 for non-financial liabilities. In ASU 2016-18, Statement of In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”), which flows. ASU 2016-18 is effective ASU 2018-02, Income In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ASU 2017-04, Intangibles In January 2017, the FASB issued ASU 2017-04 , Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 simplifies the test. ASU 2017-04 is effective 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 its consolidated financial statements or represent accounting pronouncements for which the Company has not yet completed its assessment. ASU 2016-02, Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 requires a months. ASU 2016-02 is effective right-of-use ASU 2016-13, Financial In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires companies estimates. ASU 2016-13 is effective Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. 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. 30, 2018 | |
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): 2018 2017 2016 Net income available to common stockholders – basic and diluted $ 361,972 $ 277,905 $ 214,678 Weighted average number of common shares 41,856,017 45,954,659 48,647,167 Earnings per common share – basic $ 8.65 $ 6.05 $ 4.41 Diluted weighted average number of common shares 43,331,278 47,677,834 49,923,859 Earnings per common share – diluted $ 8.35 $ 5.83 $ 4.30 The denominators used in calculating diluted earnings per share for common stock do not include 76,686 options to purchase common stock in 2018, 145,860 options to purchase common stock in 2017 and 121,075 options to purchase common stock in 2016, as the effect of including these options would be anti-dilutive. The denominator used in calculating diluted earnings per share for common stock does not include 28,570 shares subject to restricted stock awards in 2018, as the effect of including these shares would have been anti-dilutive. The denominators used in calculating diluted earnings per share for common stock do not include 81,545 restricted performance shares in 2018, 110,274 restricted performance shares in 2017 and 134,113 restricted performance shares in 2016 as the performance targets for these awards had not yet been met. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 30, 2018 | |
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 30, 2018: At December 30, 2018 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Amount Inputs Inputs Inputs Cash equivalents $ 11,877 $ 11,877 $ — $ — Restricted cash equivalents 112,272 112,272 — — Investments in marketable securities 8,718 8,718 — — Advertising fund cash equivalents, restricted 31,547 31,547 — — Advertising fund investments, restricted 50,152 50,152 — — 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 Amount Inputs Inputs Inputs Cash equivalents $ 7,933 $ 7,933 $ — $ — Restricted cash equivalents 96,375 96,375 — — Investments in marketable securities 8,119 8,119 — — Advertising fund cash equivalents, restricted 19,945 19,945 — — Advertising fund investments, restricted 74,007 74,007 — — |
Recapitalizations and Financing
Recapitalizations and Financing Arrangements | 12 Months Ended |
Dec. 30, 2018 | |
Debt Disclosure [Abstract] | |
Recapitalizations and Financing Arrangements | (4) Recapitalizations and Financing Arrangements 2018 Recapitalization On April 24, 2018, the Company completed a recapitalization (the “2018 Recapitalization”) in which certain of the Company’s subsidiaries issued new notes pursuant to an asset-backed securitization. The new notes consist of $425.0 million Series 2018-1 4.116% Notes, Class A-2-I with “2018 7.5-Year Fixed Series 2018-1 4.328% Notes, Class A-2-II with “2018 9.25-Year Fixed 2018 A portion of the proceeds from the 2018 Recapitalization was used to repay the remaining $490.1 million in outstanding principal and interest under the Company’s 2015 Five-Year Fixed Rate Notes, pre-fund a 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-Y ear 2017-1 Class A-1 A portion of proceeds from the 2017 Recapitalization was used to repay the remaining $910.5 million in outstanding principal and interest under the outstanding Series 2012-1 Class A-2 pre-fund 2015 Recapitalization On October 21, 2015, the Company completed a recapitalization transaction (the “2015 Recapitalization”) in which certain of the Company’s subsidiaries issued new notes pursuant to an asset-backed securitization. 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 2018 Notes The 2018 Notes have remaining scheduled principal payments of $8.3 million in each of 2019 through 2024, $401.4 million in 2025, $4.0 million in 2026 and $366.0 million in 2027. During fiscal 2018, the Company made principal payments of approximately $4.1 million on the 2018 Notes. The legal final maturity date of the 2018 Notes is July 2048, but it is anticipated that, unless earlier prepaid to the extent permitted under the related debt agreements, the 2018 7.5-Year 9.25-Year 2017 Notes The 2017 Notes have remaining scheduled principal payments of $19.0 million in each of 2019 through 2021, $871.8 million in 2022, $10.0 million in each of 2023 through 2026, and $907.5 million in 2027. During fiscal 2018, the Company made principal payments of approximately $19.0 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-Y ear 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 Five-Year Fixed Rate Notes were repaid in connection with the 2018 Recapitalization. The 2015 Ten-Year Ten-Year The legal final maturity date of the 2015 Ten-Year Ten-Year Ten-Year Debt Issuance Costs and Transaction-Related Expenses During 2018 and in connection with the 2018 Recapitalization, the Company incurred approximately $3.8 million of net pre-tax write-off 9.25-year 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 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 U.S. and international stores, U.S. 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 2018 Notes, 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 was to be suspended if the leverage ratios for the Company were less than or equal to 4.5x total debt to adjusted EBITDA, as defined, and there were 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. Consolidated Long-Term Debt At December 30, 2018 and December 31, 2017, consolidated long-term debt consisted of the following (in thousands): 2018 2017 3.484% Class A-2-I $ — $ 492,500 4.474% Class A-2-II 780,000 788,000 3.082% Class A-2-II 592,500 598,500 4.118% Class A-2-III 987,500 997,500 Floating Rate Class A-2-I 296,250 299,250 4.116% Class A-2-I 422,875 — 4.328% Class A-2-II 398,000 — 2017 Variable Funding Notes 65,000 — Capital lease obligations 17,006 5,437 Debt issuance costs, net of accumulated amortization of $8.2 million in 2018 and $6.8 million in 2017 (27,547 ) (27,373 ) Total debt 3,531,584 3,153,814 Less – current portion 35,893 32,324 Consolidated long-term debt, net of debt issuance costs $ 3,495,691 $ 3,121,490 At December 30, 2018, maturities of long-term debt and capital lease obligations are as follows (in thousands): 2019 $ 35,893 2020 35,956 2021 36,026 2022 953,856 2023 27,195 Thereafter 2,470,205 $ 3,559,131 Fair Value Disclosures Management estimated the approximate fair values of the 2018 Notes, 2017 Fixed and Floating Rate Notes and 2015 Notes as follows (in thousands): December 30, 2018 December 31, 2017 Principal Amount Fair Value Principal Amount Fair Value 2015 Five-Year Fixed Rate Notes $ — $ — $ 492,500 $ 494,470 2015 Ten-Year 780,000 783,120 788,000 821,884 2017 Five-Year Fixed Rate Notes 592,500 575,910 598,500 592,515 2017 Ten-Year 987,500 956,888 997,500 1,023,435 2017 Five-Year Floating Rate Notes 296,250 295,065 299,250 300,746 2018 7.5-Year Fixed 422,875 416,955 — — 2018 9.25-Year 398,000 396,010 — — At December 30, 2018, the Company had $65.0 million outstanding under its 2017 Variable Funding Notes, which is a variable rate loan. The fair value of this loan approximates book value based on the borrowing rates currently available for variable rate loans obtained from third party lending institutions. This fair value represents a Level 2 measurement (Note 3). The Company did not have any borrowings outstanding under its 2017 Variable Funding Notes at December 31, 2017. The 2018 Notes, 2017 Fixed and Floating Rate Notes and 2015 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. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (5) Commitments and Contingencies Lease Commitments As of December 30, 2018, the future minimum rental commitments for all non-cancelable Operating Capital Leases Leases Total 2019 $ 40,752 $ 2,396 $ 43,148 2020 37,519 2,415 39,934 2021 34,538 2,433 36,971 2022 30,763 2,451 33,214 2023 27,388 2,474 29,862 Thereafter 100,310 23,781 124,091 Total future minimum rental commitments $ 271,270 35,950 $ 307,220 Less – amounts representing interest (18,944 ) Total principal payable on capital leases $ 17,006 Future minimum rental commitments for non-cancelable non-lease As of December 30, 2018, the Company has additional operating leases for supply chain center tractors and trailers and a build-to-suit 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. On May 11, 2018, the court of appeals reversed and remanded the case to the trial court for a new trial based on the plaintiff’s improper closing argument. The Company continues to deny liability in this matter. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (6) Income Taxes Income before provision for income taxes in 2018, 2017 and 2016 consists of the following (in thousands): 2018 2017 2016 U.S. $ 414,804 $ 386,989 $ 334,892 Foreign 13,874 13,164 9,766 $ 428,678 $ 400,153 $ 344,658 The differences between the U.S. Federal statutory income tax provision (using the statutory rate of 21% in 2018 and the statutory rate of 35% in 2017 and 2016) and the Company’s consolidated provision for income taxes for 2018, 2017 and 2016 are summarized as follows (in thousands): 2018 2017 2016 Federal income tax provision based on the statutory rate $ 90,022 $ 140,054 $ 120,630 State and local income taxes, net of related Federal income taxes 14,233 11,520 9,787 Non-resident 21,369 20,210 17,275 Foreign tax and other tax credits (25,301 ) (23,324 ) (20,049 ) Foreign derived intangible income (11,760 ) — — Excess tax benefits from equity-based compensation (23,786 ) (27,227 ) — Non-deductible 1,999 1,794 1,579 Unrecognized tax provision (benefit), net of related Federal income taxes 301 (173 ) (98 ) Other (371 ) (606 ) 856 $ 66,706 $ 122,248 $ 129,980 The Company adopted ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting 2016-09”) 2016-09 The components of the 2018, 2017 and 2016 consolidated provision for income taxes are as follows (in thousands): 2018 2017 2016 Provision for Federal income taxes Current provision $ 33,558 $ 81,747 $ 100,673 Deferred provision (benefit) (1,543 ) 6,732 (3,096 ) Total provision for Federal income taxes 32,015 88,479 97,577 Provision for state and local income taxes Current provision 12,651 14,131 15,091 Deferred provision (benefit) 671 (572 ) 37 Total provision for state and local income taxes 13,322 13,559 15,128 Provision for non-resident 21,369 20,210 17,275 $ 66,706 $ 122,248 $ 129,980 As of December 30, 2018 and December 31, 2017, the significant components of net deferred income taxes are as follows (in thousands): 2018 2017 Deferred income tax assets Insurance reserves $ 10,253 $ 9,957 Equity compensation 9,705 9,277 Other accruals and reserves 10,636 8,532 Foreign tax credit 4,600 — Other 6,029 4,801 Total deferred income tax assets 41,223 32,567 Deferred income tax liabilities Depreciation, amortization and asset basis differences 10,505 4,655 Capitalized software 25,192 22,248 Gain on debt extinguishments — 2,914 Total deferred income tax liabilities 35,697 29,817 Net deferred income taxes $ 5,526 $ 2,750 As of December 30, 2018, the Company had unused foreign tax credits of $4.6 million which can be carried back for one year to be fully utilized against its U.S. federal income tax liability. 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” threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company recognizes accrued interest related to unrecognized tax benefits in interest expense and penalties in income tax expense. At December 30, 2018, the amount of unrecognized tax benefits was $2.0 million of which, if ultimately recognized, $1.8 million would be recognized as an income tax benefit and reduce the Company’s effective tax rate. At December 30, 2018, the Company had less than $0.1 million of accrued interest and no accrued penalties. 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. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): 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 Additions for tax positions of current year 425 Additions for tax positions of prior years 115 Reductions in tax positions from prior years for: Changes in prior year tax positions (64 ) Lapses of applicable statute of limitations (349 ) Balance as of December 30, 2018 $ 1,964 The Company is currently under examination by the IRS for the 2015 tax year. The Company continues to be under examination by certain states. The Company’s Federal statute of limitation has expired for years prior to 2015 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 The Tax Cuts and Jobs Act (the “2017 Tax Act”), which was enacted on December 22, 2017, had a significant impact on the Company’s consolidated provision for income taxes for the year ended December 30, 2018. The most significant impacts include but are not limited to reducing the U.S. corporate income tax rate from 35 percent to 21 percent, establishing a deduction for foreign derived intangible income and imposing new limitations on certain executive compensation and foreign tax credits. The Company recognized the enactment-date 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 Company for tax effects of the 2017 Tax Act |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 30, 2018 | |
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 18 years of age are eligible to participate in the plan. During 2018, 2017 and 2016, the plan required 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. Effective January 1, 2019, the plan will require the Company to match 100% of the first 5% of each employee’s elective deferrals. During 2018, 2017 and 2016, 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 $7.3 million, $6.1 million and $5.2 million in 2018, 2017 and 2016, respectively. The Company has established a non-qualified The Company has an employee stock payroll deduction 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 19,494 shares, 21,744 shares and 23,317 shares of common stock in 2018, 2017 and 2016, respectively, purchased on the open market for participating employees at a weighted-average price of $249.57 in 2018, $188.57 in 2017 and $131.74 in 2016. The expenses incurred under the ESPDP were approximately $0.7 million, $0.7 million and $0.5 million in 2018, 2017 and 2016, respectively. |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 12 Months Ended |
Dec. 30, 2018 | |
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. 30, 2018 | |
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 30, 2018, 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 2,708,278 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 Stock Options As of December 30, 2018, the number of stock options granted and outstanding under the 2004 Equity Incentive Plan was 1,909,399 options. 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 2018 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 Outstanding Weighted Average Exercise Price Weighted Average Remaining Life Aggregate Intrinsic Value (Years) (In thousands) 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 Stock options granted 96,580 266.11 Stock options cancelled (11,193 ) 174.63 Stock options exercised (414,102 ) 23.74 Stock options at December 30, 2018 1,909,399 $ 72.86 4.5 $ 340,555 Exercisable at December 30, 2018 1,698,583 $ 56.40 4.0 $ 328,788 The total intrinsic value of stock options exercised was approximately $91.2 million, $62.0 million and $128.0 million in 2018, 2017 and 2016, respectively. Cash received from the exercise of stock options was approximately $9.8 million, $6.1 million and $15.2 million in 2018, 2017 and 2016, respectively. The tax benefit realized from stock options exercised was approximately $22.0 million, $23.0 million and $46.1 million in 2018, 2017 and 2016, respectively. The Company recorded total non-cash Management estimated the fair value of each option grant made during 2018, 2017 and 2016 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. 2018 2017 2016 Risk-free interest rate 2.7 % 2.0 % 1.3 % Expected life (years) 5.5 5.5 5.5 Expected volatility 24.2 % 25.8 % 26.0 % Expected dividend yield 0.8 % 0.9 % 1.2 % Weighted average fair value per stock option $ 67.65 $ 49.57 $ 29.59 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 3,790 shares, 4,410 shares and 6,920 shares of restricted stock in 2018, 2017 and 2016, 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 In 2018, the Company granted 28,570 shares of restricted stock to two executives of the Company. These grants will vest four years 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 The Company granted 59,070 shares, 67,840 shares and 90,730 shares of performance-based restricted stock in 2018, 2017 and 2016, 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 Restricted stock and performance-based restricted stock activity related to the 2004 Equity Incentive Plan is summarized as follows: Shares Weighted Average Grant Date Fair Value Nonvested at January 3, 2016 316,332 $ 75.74 Shares granted (1) 97,650 131.75 Shares cancelled (13,970 ) 88.34 Shares vested (123,792 ) 70.39 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 Shares granted (1) 91,430 271.33 Shares cancelled (12,692 ) 178.06 Shares vested (82,963 ) 128.57 Nonvested at December 30, 2018 190,379 $ 213.57 (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. 30, 2018 | |
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, which was reset during the first quarter of 2018 to $750.0 million. The open market share repurchase program has historically been funded by excess . 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 Board of Directors-approved 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. During 2018, 2017 and 2016, the Company repurchased 2,387,430 shares, 5,576,249 shares and 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 Company’s $600.0 million accelerated share repurchase agreement with a counterparty entered into on October 27, 2015) for approximately $591.2 million, $1.06 billion and $300.3 million, respectively. At December 30, 2018, the Company had $158.8 million remaining under its $750.0 million 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 30, 2018, authorized common stock consists of 160,000,000 voting shares and 10,000,000 non-voting 2018 2017 Voting 40,974,200 42,881,905 Non-Voting 3,361 16,424 Total Common Stock 40,977,561 42,898,329 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | (11) Segment Information The Company has three reportable segments: (i) U.S. 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 U.S. Stores segment includes operations with respect to all franchised and Company-owned stores throughout the U.S. 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 U.S. and Canada. The International Franchise segment primarily includes operations related to the Company’s franchising business in foreign markets. 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 2018, 2017 and 2016. Intersegment Revenues are comprised of sales of food, equipment and supplies from the Supply Chain segment to the Company-owned stores in the U.S. 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. U.S. Stores (1) Supply Chain International Franchise (2) Intersegment Revenues Other Total Revenues- 2018 $ 1,264,823 $ 2,087,408 $ 224,747 $ (144,111 ) — $ 3,432,867 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 Segment Income- 2018 $ 335,989 $ 176,714 $ 174,700 N/A $ (43,462 ) $ 643,941 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 Income from Operations- 2018 $ 329,044 $ 162,392 $ 174,503 N/A $ (94,250 ) $ 571,689 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 Capital Expenditures- 2018 $ 15,717 $ 61,652 $ 134 N/A $ 42,171 $ 119,674 2017 20,579 34,123 28 N/A 35,527 90,257 2016 18,225 11,527 642 N/A 31,143 61,537 (1) The adoption of ASC 606 in 2018 resulted in the recognition of $358.5 million in revenue in 2018 related to U.S. franchise contributions to DNAF. In prior years, under accounting standards in effect at that time, the Company had presented these contributions net with the related disbursements in its consolidated statement of income. Refer to Note 1 to the consolidated financial statements for additional information related to the adoption of this new accounting standard. (2) In 2018, the Company began managing its franchised stores in Alaska and Hawaii as part of its U.S. Stores segment. Prior to 2018, store counts, retail sales and royalty revenues from these franchised stores were included in the Company’s international operations in the table above. Consolidated results of the Company have not been impacted by this change and prior year amounts have not been reclassified to conform to the current year presentation due to immateriality. The following table reconciles total Segment Income to income before provision for income taxes: 2018 2017 2016 Total Segment Income $ 643,941 $ 583,788 $ 511,609 Depreciation and amortization (53,665 ) (44,369 ) (38,140 ) Gain (loss) on sale/disposal of assets 4,737 3,148 (863 ) Non-cash (22,792 ) (20,713 ) (18,564 ) Recapitalization-related expenses (532 ) (622 ) — Income from operations 571,689 521,232 454,042 Interest income 3,334 1,462 685 Interest expense (146,345 ) (122,541 ) (110,069 ) Income before provision for income taxes $ 428,678 $ 400,153 $ 344,658 The following table summarizes the Company’s identifiable asset information as of December 30, 2018 and December 31, 2017: 2018 2017 U.S. Stores (1) $ 211,554 $ 216,994 U.S. supply chain 283,351 206,059 Total U.S. assets 494,905 423,053 International Franchise 21,094 19,728 International supply chain 24,049 24,925 Total international assets 45,143 44,653 Unallocated 367,337 369,047 Total consolidated assets $ 907,385 $ 836,753 (1) Identifiable assets for U.S. Stores include $112.7 million and $120.2 million of advertising fund assets, restricted, as of December 30, 2018 and December 31, 2017, respectively. The 2017 amounts were previously classified as unallocated and have been recast due to the adoption of ASC 606. Unallocated assets primarily include cash and cash equivalents, restricted cash and cash equivalents, investments in marketable securities, certain long-lived assets and deferred income taxes. The following table summarizes the Company’s goodwill balance as of December 30, 2018 and December 31, 2017: 2018 2017 U.S. Stores $ 13,852 $ 14,356 Supply Chain 1,067 1,067 Consolidated goodwill $ 14,919 $ 15,423 |
Sale and Closure of Company-Own
Sale and Closure of Company-Owned Stores | 12 Months Ended |
Dec. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Sale and Closure of Company-Owned Stores | (12) Sale and Closure of Company-Owned Stores During 2018, the Company sold 12 Company-owned stores to a former executive of the Company for proceeds of $7.9 million. The former executive terminated his employment with the Company prior to the closing date of the sale and became a franchisee. In connection with the sale of the stores, the Company recorded a $5.9 million pre-tax gain pre-tax 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. |
Periodic Financial Data (Unaudi
Periodic Financial Data (Unaudited; in Thousands, except Per Share Amounts) | 12 Months Ended |
Dec. 30, 2018 | |
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 2018 and 2017 are comprised of 16 weeks. For the Fiscal Quarter Ended For the Fiscal Year Ended March 25, 2018 June 17, 2018 September 9, 2018 December 30, 2018 December 30, 2018 Total revenues $ 785,371 $ 779,396 $ 785,965 $ 1,082,135 $ 3,432,867 Operating margin 299,865 293,580 295,279 413,955 1,302,679 Income before provision for income taxes 103,670 91,197 99,248 134,563 428,678 Net income 88,827 77,408 84,095 111,642 361,972 Earnings per common share – basic (1) $ 2.07 $ 1.84 $ 2.02 $ 2.71 $ 8.65 Earnings per common share – diluted (1) $ 2.00 $ 1.78 $ 1.95 $ 2.62 $ 8.35 Common stock dividends declared per share $ 0.55 $ 0.55 $ 0.55 $ 0.55 $ 2.20 For the Fiscal Quarter Ended For the Fiscal Year Ended March 26, 2017 June 18, 2017 September 10, 2017 December 31, 2017 December 31, 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 (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. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | (14) Subsequent Events On February 20, 2019, the Company’s Board of Directors declared a quarterly dividend of $0.65 per common share payable on March 29, 2019 to shareholders of record at the close of business on March 15, 2019. From December 31, 2018 through February 14, 2019, the Company repaid $15.0 million of its borrowings under its 2017 Variable Funding Notes. As of February 14, 2019, the Company had $50.0 million outstanding under its 2017 Variable Funding Notes. |
SCHEDULE I - CONDENSED FINANCIA
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT | 12 Months Ended |
Dec. 30, 2018 | |
Condensed Financial Information 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 30, December 31, 2018 2017 ASSETS ASSETS: Cash $ 6 $ 6 Total assets $ 6 $ 6 LIABILITIES AND STOCKHOLDERS’ DEFICIT LIABILITIES: Equity in net deficit of subsidiaries $ 3,039,921 $ 2,735,384 Due to subsidiary 6 6 Total liabilities 3,039,927 2,735,390 STOCKHOLDERS’ DEFICIT: Common stock, par value $0.01 per share; 170,000,000 shares authorized; 40,977,561 in 2018 and 42,898,329 in 2017 issued and outstanding 410 429 Preferred stock, par value $0.01 per share; 5,000,000 shares authorized, none issued — — Additional paid-in 569 5,654 Retained deficit (3,036,471 ) (2,739,437 ) Accumulated other comprehensive loss (4,429 ) (2,030 ) Total stockholders’ deficit (3,039,921 ) (2,735,384 ) 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 share and per share amounts) For the Years Ended December 30, December 31, January 1, 2018 2017 2017 REVENUES $ — $ — $ — Total revenues — — — OPERATING EXPENSES — — — Total operating expenses — — — INCOME FROM OPERATIONS — — — Equity earnings in subsidiaries 361,972 277,905 214,678 INCOME BEFORE PROVISION FOR INCOME TAXES 361,972 277,905 214,678 PROVISION FOR INCOME TAXES — — — NET INCOME $ 361,972 $ 277,905 $ 214,678 COMPREHENSIVE INCOME $ 359,924 $ 278,985 $ 215,116 EARNINGS PER SHARE: Common Stock – basic $ 8.65 $ 6.05 $ 4.41 Common Stock – diluted $ 8.35 $ 5.83 $ 4.30 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 30, December 31, January 1, 2018 2017 2017 CASH FLOWS FROM OPERATING ACTIVITIES: Net cash provided by operating activities $ 382,716 $ 299,576 $ 281,731 CASH FLOWS FROM INVESTING ACTIVITIES: Dividends from subsidiaries 297,792 852,325 82,856 Net cash provided by investing activities 297,792 852,325 82,856 CASH FLOWS FROM FINANCING ACTIVITIES: Payments of common stock dividends (92,166 ) (84,298 ) (73,925 ) Purchase of common stock (591,212 ) (1,064,253 ) (300,250 ) Other 2,870 (3,350 ) 9,588 Net cash used in financing activities (680,508 ) (1,151,901 ) (364,587 ) 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. New Accounting Pronouncements During 2018, the Company adopted the below new accounting pronouncements that impacted the Parent Company financial statements. Accounting Standards Update 2014-09, Revenue from In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) The Parent Company recorded a $6.7 million adjustment to equity in net deficit of subsidiaries and recorded a $6.7 million adjustment to retained deficit related to this new accounting standard in 2018. See Note 1 to the Company’s consolidated financial statements as filed in this Form 10-K ASU 2018-02, Income In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (2) Supplemental Disclosures of Cash Flow Information During 2018, 2017 and 2016, the Parent Company received dividends from its subsidiaries primarily consisting of amounts received to repurchase common stock in connection with the Company’s 2018 and 2017 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. 30, 2018 | |
SEC Schedule, 12-09, 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 Beginning of Year Provision (Benefit) Additions/ Deductions from Reserves* Balance End of Year Allowance for doubtful accounts receivable: 2018 $ 1,424 $ 903 $ (448 ) 1,879 2017 2,342 (88 ) (830 ) 1,424 2016 2,662 (51 ) (269 ) 2,342 * Consists primarily of write-offs, recoveries of bad debt and certain reclassifications. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 30, 2018 | |
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; (iii) receipt of royalties, advertising contributions and fees from U.S. Domino’s Pizza franchisees; and (iv) receipt of royalties and fees from 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 2018 fiscal year ended on December 30, 2018, the 2017 fiscal year ended on December 31, 2017 and the 2016 fiscal year ended on January 1, 2017. The 2018, 2017 and 2016 fiscal years all 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 30, 2018 includes approximately $130.3 million of restricted cash held for future principal and interest payments, $36.5 million of restricted cash held in a three-month interest reserve as required by the related debt agreements and $0.2 million of other restricted cash. As of December 30, 2018, the Company also held $45.0 million of advertising fund restricted cash and cash equivalents, which can only be used for activities that promote the Domino’s Pizza brand. 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. As of December 31, 2017, the Company also held $27.3 million of advertising fund restricted cash and cash equivalents, which can only be used for activities that promote the Domino’s Pizza brand. |
Inventories | Inventories Inventories are valued at the lower of cost (on a first-in, first-out 2018 2017 Food $ 42,921 $ 36,645 Equipment and supplies 3,054 3,316 Inventories $ 45,975 $ 39,961 |
Other Assets | Other Assets Current and long-term other assets primarily include prepaid expenses such as insurance, rent and taxes, deposits, notes receivable, software licenses, 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 are 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 30, 2018 are capital lease assets of approximately $22.2 million, which are related to the leases of five supply chain centers and the lease of one Company-owned store. Included in accumulated depreciation and amortization as of December 30, 2018 is $6.7 million of accumulated amortization related to these leases. Included in land and buildings as of December 31, 2017 are capital lease assets of approximately $10.5 million, which are related to the lease of one supply chain center building and the lease of one Company-owned store. Included in accumulated depreciation and amortization as of December 31, 2017 is $6.2 million of accumulated amortization related to these leases. 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 $35.0 million, $29.6 million and $27.3 million in 2018, 2017 and 2016, 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 2018, 2017 or 2016. |
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. |
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 2018, 2017 and 2016. |
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 $18.7 million, $14.8 million and $10.8 million in 2018, 2017 and 2016, respectively. As of December 30, 2018, scheduled amortization for the next five fiscal years for capitalized software that has been placed in service was approximately $16.6 million, $11.5 million, $7.7 million, $4.2 million and $1.7 million for 2019, 2020, 2021, 2022 and 2023, respectively. |
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 2018, 2017 and 2015 Recapitalizations. See Note 4 for a description of the 2018, 2017 and 2015 Recapitalizations. Amortization is recorded 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 2018, 2017 and 2015 Recapitalizations, the Company recorded $8.2 million, $16.8 million and $17.4 million of debt issuance costs, respectively. In connection with 2018 Recapitalization, the Company repaid the 2015 Five-Year Fixed Rate Notes and expensed approximately $3.2 million for the remaining unamortized debt issuance costs associated with these notes. The remaining debt issuance costs are being amortized into interest expense over the expected terms of the 2018, 2017 and 2015 Notes, as described in Note 4. The Company expensed debt issuance costs of approximately $3.4 million, $5.7 million and $0.6 million in 2018, 2017 and 2016, respectively in connection with the write-off write-off |
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 twice per year and differences between these estimated actuarial exposures and the Company’s recorded amounts are adjusted as appropriate. |
Contract Liabilities | Contract Liabilities Contract liabilities consist of deferred franchise fees and deferred development fees. Changes in deferred franchise fees and deferred development fees in 2018 were as follows: Fiscal Year Ended (In thousands) December 30, 2018 Deferred franchise fees and deferred development fees at beginning of period $ 19,404 Revenue recognized during the period (5,235 ) New deferrals due to cash received and other 5,731 Deferred franchise fees and deferred development fees at end of period $ 19,900 The Company expects to recognize revenue of $4.0 million in 2019, $3.1 million in 2020, $2.8 million in 2021, $2.5 million in 2022, $2.2 million in 2023 and $5.3 million thereafter associated with the total deferred franchise fee and deferred development fee amount above. The Company has applied the sales-based royalty exemption which permits exclusion of variable consideration in the form of sales-based royalties from the disclosure of remaining performance obligations. |
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 U.S. Company-owned stores revenues are comprised of retail sales of food through Company-owned Domino’s Pizza stores located in the U.S. and are recognized when the items are delivered to or carried out by customers. Customer payments are generally due at the time of sale. Sales taxes related to these sales are collected from customers and remitted to the appropriate taxing authority and are not reflected in the Company’s consolidated statements of income as revenue. U.S. franchise royalties and fees are primarily comprised of royalties and fees from Domino’s Pizza franchisees with operations in the U.S. Each franchisee is generally required to pay a 5.5% royalty fee on sales. In certain instances, the Company will collect lower rates based on area development agreements, sales initiatives and new store incentives. Royalty revenues are based on a percentage of franchise retail sales and are recognized when the items are delivered to or carried out by franchisees’ customers. U.S. franchise fee revenue primarily relates to per-transaction technology Supply chain revenues are primarily comprised of sales of food, equipment and supplies to franchised Domino’s Pizza stores located in the U.S. and Canada. Revenues from the sale of food are recognized upon delivery of the food to franchisees and payments for food purchases are generally due within 30 days of the shipping date. Revenues from the sale of equipment and supplies are recognized upon delivery or shipment of the related products to franchisees, based on shipping terms, and payments for equipment and supplies are generally due within 90 days of the shipping date. The Company also offers profit sharing rebates and volume discounts to its franchisees. Obligations for profit sharing rebates are calculated based on actual results of its supply chain centers and are recognized as a reduction to revenue. Volume discounts are based on annual sales. The Company estimates the amount that will be earned and records a reduction to revenue. International franchise royalties and fees are primarily comprised of royalties and fees from Domino’s Pizza franchisees outside of the U.S. Royalty revenues are recognized when the items are delivered to or carried out by franchise customers. Store opening fees received from international franchisees are recognized as revenue on a straight-line basis over the term of each respective franchise store agreement, which is typically ten years. Development fees received from international master franchisees are also deferred when amounts are received and are recognized as revenue on a straight-line basis over the term of the respective master franchise agreement, which is typically ten years. International franchise royalties and fees are invoiced at least quarterly and payments are generally due within 60 days. U.S. franchise advertising revenues are primarily comprised of contributions from Domino’s Pizza franchisees with operations in the U.S. to the Domino’s National Advertising Fund Inc. (“DNAF”), the Company’s consolidated not-for-profit subsidiary Reclassification of Revenues In the first quarter of 2018, the Company began managing its franchised stores in Alaska and Hawaii as part of its U.S. Stores segment (Note 11). Prior to 2018, the revenues from these franchised stores were included in the Company’s International Franchise segment (Note 11). International franchise royalties and fees revenues in 2017 and 2016 included $2.6 million and $2.3 million, respectively, of franchise revenues related to these stores. These amounts have not been reclassified to conform to the current year presentation due to immateriality. Disaggregation of Revenue Current accounting standards require that companies disaggregate revenue from contracts with customers into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The Company has included its revenues disaggregated in its consolidated statements of income to satisfy this requirement. |
Supply Chain Profit-Sharing Arrangements | Supply Chain Profit-Sharing Arrangements The Company enters into profit-sharing arrangements with U.S. 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 U.S. Stores (Note 11) are generally required to contribute 6% of sales to DNAF. U.S. franchise advertising costs are accrued and expensed when the related U.S. franchise advertising revenues are recognized, as DNAF is obligated to expend such revenues on advertising. Advertising costs funded by Company-owned stores are generally expensed as incurred and are included in general and administrative expense. The contributions from Company-owned stores that have not yet been expended are included in advertising fund assets, restricted on the Company’s consolidated balance sheet. As of December 30, 2018, advertising fund assets, restricted of $112.7 million included approximately $5.5 million of cash contributed from Company-owned stores that had not yet been expended and approximately $107.2 million of other assets which consisted of $95.1 million of cash, cash equivalents and investments, $15.3 million of accounts receivable and $2.3 million of prepaid expenses. U.S. franchise advertising costs expended by DNAF are included in U.S. franchise advertising expenses in the Company’s consolidated statement of income. Certain costs incurred by the Company on behalf of DNAF were included in general and administrative expense in years prior to 2018. Refer to the New Accounting Pronouncements section within Note 1 for the full impact of the adoption of ASC 606 on the Company’s financial statements. |
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 2034. Rent expenses totaled approximately $62.5 million, $57.9 million and $49.9 million during 2018, 2017 and 2016, respectively. |
Common Stock Dividends | Common Stock Dividends The Company declared and paid dividends of approximately $92.2 million (or $2.20 per share) in 2018, approximately $84.2 million (or $1.84 per share) in 2017 and approximately $74.0 million (or $1.52 per share) in 2016. |
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 $132.8 million, $107.4 million and $104.6 million during 2018, 2017 and 2016, respectively. Cash paid for income taxes was approximately $71.7 million, $122.6 million and $74.3 million in 2018, 2017 and 2016, respectively. The Company had $3.8 million, $4.0 million and $3.8 million of non-cash non-cash recorded non-cash financing non-cash build-to-suit |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Accounting Standards Accounting Standards Update 2014-09, Revenue from In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) The Company recognized the cumulative effect of initially applying ASC 606 as an adjustment to the opening balance of retained deficit. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company has determined that the store opening fees received from international franchisees do not relate to 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 store agreement, which is typically 10 years. In the past, the Company recognized such fees as revenue when the related store opened. An adjustment to beginning retained deficit and a corresponding contract liability of approximately $15.0 million (of which $2.4 million was current and $12.6 million was long-term) was 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 store agreement if the new guidance had been applied in the past. A deferred tax asset of $3.5 million related to this contract liability was also established on the date of adoption. 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, the Company’s consolidated not-for-profit subsidiary. DNAF Under the requirements of ASC 606, the Company determined that there are not performance obligations associated with the franchise advertising contributions received by DNAF that are separate from the Company’s U.S. royalty payment stream and as a result, these franchise contributions and the related expenses are presented gross in the Company’s consolidated statement of income and consolidated statement of cash flows. While this change materially impacted the gross amount of reported franchise revenues and expenses, the impact is generally expected to be an offsetting increase to both revenues and expenses such that the impact on income from operations and net income is not expected to be material. An adjustment to beginning retained deficit and advertising fund liabilities of approximately $6.4 million related to the timing of advertising expense recognition was recorded on the date of adoption. A deferred tax liability (which is reflected net against deferred tax assets in the consolidated balance sheet) of approximately $1.6 million related to this adjustment was also established on the date of adoption. The cumulative effects of the changes made to the Company’s consolidated balance sheet as of January 1, 2018 for the adoption of ASC 606 were as follows (in thousands): Balance at Adjustments Due to ASC 606 Balance at Assets Other assets: Deferred income taxes $ 2,750 $ 1,878 $ 4,628 Liabilities and stockholders’ deficit Current liabilities: Advertising fund liabilities 120,223 (6,425 ) 113,798 Other accrued liabilities 58,578 2,365 60,943 Long-term liabilities: Other accrued liabilities 21,751 12,639 34,390 Stockholders’ deficit: Retained deficit (2,739,437 ) (6,701 ) (2,746,138 ) In accordance with the new revenue standard requirements, the impact of adoption on the Company’s consolidated statement of income for 2018 and consolidated balance sheet as of December 30, 2018 was as follows (in thousands): Fiscal Year Ended December 30, 2018 As Reported Balances without the ASC 606 Effect of Change Higher/ (Lower) Revenues: U.S. franchise royalties and fees $ 391,493 $ 409,379 $ (17,886 ) International franchise royalties and fees 224,747 225,708 (961 ) U.S. franchise advertising 358,526 — 358,526 General and administrative 372,464 389,520 (17,056 ) U.S. franchise advertising 358,526 — 358,526 Income from operations 571,689 573,481 (1,792 ) Income before provision for income taxes 428,678 430,470 (1,792 ) Provision for income taxes 66,706 67,111 (405 ) Net income 361,972 363,359 (1,387 ) As of December 30, 2018 As Reported Balances without the ASC 606 Effect of Change Higher/ (Lower) Assets Other assets: Deferred income taxes $ 5,526 $ 3,243 $ 2,283 Liabilities and stockholders’ deficit Current liabilities: Advertising fund liabilities 107,150 112,744 (5,594 ) Other accrued liabilities 55,001 52,396 2,605 Long-term liabilities: Other accrued liabilities 40,807 27,447 13,360 Stockholders’ deficit: Retained deficit (3,036,471 ) (3,028,383 ) (8,088 ) ASU 2016-04, Liabilities (Subtopic 405-20) In March 2016, the FASB issued ASU 2016-04, Liabilities – Extinguishment of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products (“ASU 2016-04”). ASU 2016-04 aligns recognition 606 for non-financial liabilities. In ASU 2016-18, Statement of In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”), which flows. ASU 2016-18 is effective ASU 2018-02, Income In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ASU 2017-04, Intangibles In January 2017, the FASB issued ASU 2017-04 , Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 simplifies the test. ASU 2017-04 is effective 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 its consolidated financial statements or represent accounting pronouncements for which the Company has not yet completed its assessment. ASU 2016-02, Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 requires a months. ASU 2016-02 is effective right-of-use ASU 2016-13, Financial In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires companies estimates. ASU 2016-13 is effective |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. 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 S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Accounting Policies [Abstract] | |
Inventories | Inventories are valued at the lower of cost (on a first-in, first-out 2018 2017 Food $ 42,921 $ 36,645 Equipment and supplies 3,054 3,316 Inventories $ 45,975 $ 39,961 |
Estimated Useful Lives of Property, Plant And Equipment Excluding Capital Lease Asset | Additions to property, plant and equipment are recorded at cost. Repair and maintenance costs are expensed as incurred. Depreciation and amortization expense are 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 |
Schedule of Contract Liabilities Consist Of Deferred Franchise Fees and Deferred Development Fees | Changes in deferred franchise fees and deferred development fees in 2018 were as follows: Fiscal Year Ended (In thousands) December 30, 2018 Deferred franchise fees and deferred development fees at beginning of period $ 19,404 Revenue recognized during the period (5,235 ) New deferrals due to cash received and other 5,731 Deferred franchise fees and deferred development fees at end of period $ 19,900 |
Schedule Of Cumulative Effects Of Changes Made To Consolidated Balance Sheet | The cumulative effects of the changes made to the Company’s consolidated balance sheet as of January 1, 2018 for the adoption of ASC 606 were as follows (in thousands): Balance at Adjustments Due to ASC 606 Balance at Assets Other assets: Deferred income taxes $ 2,750 $ 1,878 $ 4,628 Liabilities and stockholders’ deficit Current liabilities: Advertising fund liabilities 120,223 (6,425 ) 113,798 Other accrued liabilities 58,578 2,365 60,943 Long-term liabilities: Other accrued liabilities 21,751 12,639 34,390 Stockholders’ deficit: Retained deficit (2,739,437 ) (6,701 ) (2,746,138 ) |
Impact of Adoption on Company's Consolidated Statement of Income and Consolidated Balance Sheet | In accordance with the new revenue standard requirements, the impact of adoption on the Company’s consolidated statement of income for 2018 and consolidated balance sheet as of December 30, 2018 was as follows (in thousands): Fiscal Year Ended December 30, 2018 As Reported Balances without the ASC 606 Effect of Change Higher/ (Lower) Revenues: U.S. franchise royalties and fees $ 391,493 $ 409,379 $ (17,886 ) International franchise royalties and fees 224,747 225,708 (961 ) U.S. franchise advertising 358,526 — 358,526 General and administrative 372,464 389,520 (17,056 ) U.S. franchise advertising 358,526 — 358,526 Income from operations 571,689 573,481 (1,792 ) Income before provision for income taxes 428,678 430,470 (1,792 ) Provision for income taxes 66,706 67,111 (405 ) Net income 361,972 363,359 (1,387 ) As of December 30, 2018 As Reported Balances without the ASC 606 Effect of Change Higher/ (Lower) Assets Other assets: Deferred income taxes $ 5,526 $ 3,243 $ 2,283 Liabilities and stockholders’ deficit Current liabilities: Advertising fund liabilities 107,150 112,744 (5,594 ) Other accrued liabilities 55,001 52,396 2,605 Long-term liabilities: Other accrued liabilities 40,807 27,447 13,360 Stockholders’ deficit: Retained deficit (3,036,471 ) (3,028,383 ) (8,088 ) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
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): 2018 2017 2016 Net income available to common stockholders – basic and diluted $ 361,972 $ 277,905 $ 214,678 Weighted average number of common shares 41,856,017 45,954,659 48,647,167 Earnings per common share – basic $ 8.65 $ 6.05 $ 4.41 Diluted weighted average number of common shares 43,331,278 47,677,834 49,923,859 Earnings per common share – diluted $ 8.35 $ 5.83 $ 4.30 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
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 30, 2018: At December 30, 2018 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Amount Inputs Inputs Inputs Cash equivalents $ 11,877 $ 11,877 $ — $ — Restricted cash equivalents 112,272 112,272 — — Investments in marketable securities 8,718 8,718 — — Advertising fund cash equivalents, restricted 31,547 31,547 — — Advertising fund investments, restricted 50,152 50,152 — — 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 Amount Inputs Inputs Inputs Cash equivalents $ 7,933 $ 7,933 $ — $ — Restricted cash equivalents 96,375 96,375 — — Investments in marketable securities 8,119 8,119 — — Advertising fund cash equivalents, restricted 19,945 19,945 — — Advertising fund investments, restricted 74,007 74,007 — — |
Recapitalizations and Financi_2
Recapitalizations and Financing Arrangements (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Debt Disclosure [Abstract] | |
Consolidated Long-Term Debt | At December 30, 2018 and December 31, 2017, consolidated long-term debt consisted of the following (in thousands): 2018 2017 3.484% Class A-2-I $ — $ 492,500 4.474% Class A-2-II 780,000 788,000 3.082% Class A-2-II 592,500 598,500 4.118% Class A-2-III 987,500 997,500 Floating Rate Class A-2-I 296,250 299,250 4.116% Class A-2-I 422,875 — 4.328% Class A-2-II 398,000 — 2017 Variable Funding Notes 65,000 — Capital lease obligations 17,006 5,437 Debt issuance costs, net of accumulated amortization of $8.2 million in 2018 and $6.8 million in 2017 (27,547 ) (27,373 ) Total debt 3,531,584 3,153,814 Less – current portion 35,893 32,324 Consolidated long-term debt, net of debt issuance costs $ 3,495,691 $ 3,121,490 |
Maturities of Long-Term Debt and Capital Lease Obligations | At December 30, 2018, maturities of long-term debt and capital lease obligations are as follows (in thousands): 2019 $ 35,893 2020 35,956 2021 36,026 2022 953,856 2023 27,195 Thereafter 2,470,205 $ 3,559,131 |
Schedule of Estimated Fair Value | Management estimated the approximate fair values of the 2018 Notes, 2017 Fixed and Floating Rate Notes and 2015 Notes as follows (in thousands): December 30, 2018 December 31, 2017 Principal Amount Fair Value Principal Amount Fair Value 2015 Five-Year Fixed Rate Notes $ — $ — $ 492,500 $ 494,470 2015 Ten-Year 780,000 783,120 788,000 821,884 2017 Five-Year Fixed Rate Notes 592,500 575,910 598,500 592,515 2017 Ten-Year 987,500 956,888 997,500 1,023,435 2017 Five-Year Floating Rate Notes 296,250 295,065 299,250 300,746 2018 7.5-Year Fixed 422,875 416,955 — — 2018 9.25-Year 398,000 396,010 — — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Rental Commitments for All Non-Cancelable Leases - Capital Leases | As of December 30, 2018, the future minimum rental commitments for all non-cancelable Operating Capital Leases Leases Total 2019 $ 40,752 $ 2,396 $ 43,148 2020 37,519 2,415 39,934 2021 34,538 2,433 36,971 2022 30,763 2,451 33,214 2023 27,388 2,474 29,862 Thereafter 100,310 23,781 124,091 Total future minimum rental commitments $ 271,270 35,950 $ 307,220 Less – amounts representing interest (18,944 ) Total principal payable on capital leases $ 17,006 |
Future Minimum Rental Commitments for All Non-Cancelable Leases - Operating Leases | As of December 30, 2018, the future minimum rental commitments for all non-cancelable Operating Capital Leases Leases Total 2019 $ 40,752 $ 2,396 $ 43,148 2020 37,519 2,415 39,934 2021 34,538 2,433 36,971 2022 30,763 2,451 33,214 2023 27,388 2,474 29,862 Thereafter 100,310 23,781 124,091 Total future minimum rental commitments $ 271,270 35,950 $ 307,220 Less – amounts representing interest (18,944 ) Total principal payable on capital leases $ 17,006 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Before Provision for Income Taxes | Income before provision for income taxes in 2018, 2017 and 2016 consists of the following (in thousands): 2018 2017 2016 U.S. $ 414,804 $ 386,989 $ 334,892 Foreign 13,874 13,164 9,766 $ 428,678 $ 400,153 $ 344,658 |
Differences Between Statutory Income Tax Provision and Consolidated Provision for Income Taxes | The differences between the U.S. Federal statutory income tax provision (using the statutory rate of 21% in 2018 and the statutory rate of 35% in 2017 and 2016) and the Company’s consolidated provision for income taxes for 2018, 2017 and 2016 are summarized as follows (in thousands): 2018 2017 2016 Federal income tax provision based on the statutory rate $ 90,022 $ 140,054 $ 120,630 State and local income taxes, net of related Federal income taxes 14,233 11,520 9,787 Non-resident 21,369 20,210 17,275 Foreign tax and other tax credits (25,301 ) (23,324 ) (20,049 ) Foreign derived intangible income (11,760 ) — — Excess tax benefits from equity-based compensation (23,786 ) (27,227 ) — Non-deductible 1,999 1,794 1,579 Unrecognized tax provision (benefit), net of related Federal income taxes 301 (173 ) (98 ) Other (371 ) (606 ) 856 $ 66,706 $ 122,248 $ 129,980 |
Components of Consolidated Provision for Income Taxes | The components of the 2018, 2017 and 2016 consolidated provision for income taxes are as follows (in thousands): 2018 2017 2016 Provision for Federal income taxes Current provision $ 33,558 $ 81,747 $ 100,673 Deferred provision (benefit) (1,543 ) 6,732 (3,096 ) Total provision for Federal income taxes 32,015 88,479 97,577 Provision for state and local income taxes Current provision 12,651 14,131 15,091 Deferred provision (benefit) 671 (572 ) 37 Total provision for state and local income taxes 13,322 13,559 15,128 Provision for non-resident 21,369 20,210 17,275 $ 66,706 $ 122,248 $ 129,980 |
Significant Components of Net Deferred Income Taxes | As of December 30, 2018 and December 31, 2017, the significant components of net deferred income taxes are as follows (in thousands): 2018 2017 Deferred income tax assets Insurance reserves $ 10,253 $ 9,957 Equity compensation 9,705 9,277 Other accruals and reserves 10,636 8,532 Foreign tax credit 4,600 — Other 6,029 4,801 Total deferred income tax assets 41,223 32,567 Deferred income tax liabilities Depreciation, amortization and asset basis differences 10,505 4,655 Capitalized software 25,192 22,248 Gain on debt extinguishments — 2,914 Total deferred income tax liabilities 35,697 29,817 Net deferred income taxes $ 5,526 $ 2,750 |
Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): 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 Additions for tax positions of current year 425 Additions for tax positions of prior years 115 Reductions in tax positions from prior years for: Changes in prior year tax positions (64 ) Lapses of applicable statute of limitations (349 ) Balance as of December 30, 2018 $ 1,964 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
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 Outstanding Weighted Average Exercise Price Weighted Average Remaining Life Aggregate Intrinsic Value (Years) (In thousands) 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 Stock options granted 96,580 266.11 Stock options cancelled (11,193 ) 174.63 Stock options exercised (414,102 ) 23.74 Stock options at December 30, 2018 1,909,399 $ 72.86 4.5 $ 340,555 Exercisable at December 30, 2018 1,698,583 $ 56.40 4.0 $ 328,788 |
Stock Options Valuation Assumptions | 2018 2017 2016 Risk-free interest rate 2.7 % 2.0 % 1.3 % Expected life (years) 5.5 5.5 5.5 Expected volatility 24.2 % 25.8 % 26.0 % Expected dividend yield 0.8 % 0.9 % 1.2 % Weighted average fair value per stock option $ 67.65 $ 49.57 $ 29.59 |
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: Shares Weighted Average Grant Date Fair Value Nonvested at January 3, 2016 316,332 $ 75.74 Shares granted (1) 97,650 131.75 Shares cancelled (13,970 ) 88.34 Shares vested (123,792 ) 70.39 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 Shares granted (1) 91,430 271.33 Shares cancelled (12,692 ) 178.06 Shares vested (82,963 ) 128.57 Nonvested at December 30, 2018 190,379 $ 213.57 (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. 30, 2018 | |
Text Block [Abstract] | |
Share Components of Outstanding Common Stock | The share components of outstanding common stock at December 30, 2018 and December 31, 2017 are as follows: 2018 2017 Voting 40,974,200 42,881,905 Non-Voting 3,361 16,424 Total Common Stock 40,977,561 42,898,329 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Segment Reporting [Abstract] | |
Financial Information by Operating Segment | The tables below summarize the financial information concerning the Company’s reportable segments for fiscal 2018, 2017 and 2016. Intersegment Revenues are comprised of sales of food, equipment and supplies from the Supply Chain segment to the Company-owned stores in the U.S. 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. U.S. Stores (1) Supply Chain International Franchise (2) Intersegment Revenues Other Total Revenues- 2018 $ 1,264,823 $ 2,087,408 $ 224,747 $ (144,111 ) — $ 3,432,867 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 Segment Income- 2018 $ 335,989 $ 176,714 $ 174,700 N/A $ (43,462 ) $ 643,941 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 Income from Operations- 2018 $ 329,044 $ 162,392 $ 174,503 N/A $ (94,250 ) $ 571,689 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 Capital Expenditures- 2018 $ 15,717 $ 61,652 $ 134 N/A $ 42,171 $ 119,674 2017 20,579 34,123 28 N/A 35,527 90,257 2016 18,225 11,527 642 N/A 31,143 61,537 (1) The adoption of ASC 606 in 2018 resulted in the recognition of $358.5 million in revenue in 2018 related to U.S. franchise contributions to DNAF. In prior years, under accounting standards in effect at that time, the Company had presented these contributions net with the related disbursements in its consolidated statement of income. Refer to Note 1 to the consolidated financial statements for additional information related to the adoption of this new accounting standard. (2) In 2018, the Company began managing its franchised stores in Alaska and Hawaii as part of its U.S. Stores segment. Prior to 2018, store counts, retail sales and royalty revenues from these franchised stores were included in the Company’s international operations in the table above. Consolidated results of the Company have not been impacted by this change and prior year amounts have not been reclassified to conform to the current year presentation due to immateriality. |
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: 2018 2017 2016 Total Segment Income $ 643,941 $ 583,788 $ 511,609 Depreciation and amortization (53,665 ) (44,369 ) (38,140 ) Gain (loss) on sale/disposal of assets 4,737 3,148 (863 ) Non-cash (22,792 ) (20,713 ) (18,564 ) Recapitalization-related expenses (532 ) (622 ) — Income from operations 571,689 521,232 454,042 Interest income 3,334 1,462 685 Interest expense (146,345 ) (122,541 ) (110,069 ) Income before provision for income taxes $ 428,678 $ 400,153 $ 344,658 |
Identifiable Asset Information | The following table summarizes the Company’s identifiable asset information as of December 30, 2018 and December 31, 2017: 2018 2017 U.S. Stores (1) $ 211,554 $ 216,994 U.S. supply chain 283,351 206,059 Total U.S. assets 494,905 423,053 International Franchise 21,094 19,728 International supply chain 24,049 24,925 Total international assets 45,143 44,653 Unallocated 367,337 369,047 Total consolidated assets $ 907,385 $ 836,753 (1) Identifiable assets for U.S. Stores include $112.7 million and $120.2 million of advertising fund assets, restricted, as of December 30, 2018 and December 31, 2017, respectively. The 2017 amounts were previously classified as unallocated and have been recast due to the adoption of ASC 606. |
Goodwill | The following table summarizes the Company’s goodwill balance as of December 30, 2018 and December 31, 2017: 2018 2017 U.S. Stores $ 13,852 $ 14,356 Supply Chain 1,067 1,067 Consolidated goodwill $ 14,919 $ 15,423 |
Periodic Financial Data (Unau_2
Periodic Financial Data (Unaudited; in Thousands, except Per Share Amounts) (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Periodic Financial Data | For the Fiscal Quarter Ended For the Fiscal Year Ended March 25, 2018 June 17, 2018 September 9, 2018 December 30, 2018 December 30, 2018 Total revenues $ 785,371 $ 779,396 $ 785,965 $ 1,082,135 $ 3,432,867 Operating margin 299,865 293,580 295,279 413,955 1,302,679 Income before provision for income taxes 103,670 91,197 99,248 134,563 428,678 Net income 88,827 77,408 84,095 111,642 361,972 Earnings per common share – basic (1) $ 2.07 $ 1.84 $ 2.02 $ 2.71 $ 8.65 Earnings per common share – diluted (1) $ 2.00 $ 1.78 $ 1.95 $ 2.62 $ 8.35 Common stock dividends declared per share $ 0.55 $ 0.55 $ 0.55 $ 0.55 $ 2.20 For the Fiscal Quarter Ended For the Fiscal Year Ended March 26, 2017 June 18, 2017 September 10, 2017 December 31, 2017 December 31, 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 (1) Earnings per share figures may not sum to the total due to the rounding of each individual calculation. |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | 4 Months Ended | 12 Months Ended | |||||||||||
Sep. 09, 2018 | Jun. 17, 2018 | Mar. 25, 2018 | Sep. 10, 2017 | Jun. 18, 2017 | Mar. 26, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Dec. 31, 2018 | Jan. 01, 2018 | Jan. 03, 2016 | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Restricted cash and cash equivalent | $ 112,272,000 | $ 96,375,000 | $ 112,272,000 | $ 96,375,000 | ||||||||||
Capital lease assets | 22,200,000 | 10,500,000 | 22,200,000 | 10,500,000 | ||||||||||
Accumulated amortization of capital lease assets | 6,700,000 | $ 6,200,000 | 6,700,000 | 6,200,000 | ||||||||||
Depreciation and amortization expense | 53,665,000 | 44,369,000 | $ 38,140,000 | |||||||||||
Capitalized software amortization expense | 18,700,000 | 14,800,000 | 10,800,000 | |||||||||||
Amortization Expenses in 2019 | 16,600,000 | 16,600,000 | ||||||||||||
Amortization Expenses in 2020 | 11,500,000 | 11,500,000 | ||||||||||||
Amortization Expenses in 2021 | 7,700,000 | 7,700,000 | ||||||||||||
Amortization Expenses in 2022 | 4,200,000 | 4,200,000 | ||||||||||||
Amortization Expenses in 2023 | 1,700,000 | 1,700,000 | ||||||||||||
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 | $ 132,700,000 | 119,700,000 | 99,800,000 | |||||||||||
Rent expenses | $ 62,500,000 | $ 57,900,000 | $ 49,900,000 | |||||||||||
Common stock dividend declared, per share | $ 0.55 | $ 0.55 | $ 0.55 | $ 0.46 | $ 0.46 | $ 0.46 | $ 0.55 | $ 0.46 | $ 2.20 | $ 1.84 | $ 1.52 | |||
Common stock dividend declared, paid | $ 92,166,000 | $ 84,298,000 | $ 73,925,000 | |||||||||||
Interest paid | 132,800,000 | 107,400,000 | 104,600,000 | |||||||||||
Cash paid for income taxes | 71,700,000 | 122,600,000 | 74,300,000 | |||||||||||
Capital expenditure accrual | 3,800,000 | 4,000,000 | 3,800,000 | |||||||||||
Capital lease | 12,000,000 | |||||||||||||
Adjustment to beginning retained deficit | $ 15,000,000 | |||||||||||||
Contract liability, Current | $ 4,000,000 | $ 1,400,000 | 4,000,000 | 1,400,000 | 2,400,000 | |||||||||
Contract liability, Noncurrent | 15,900,000 | 3,000,000 | 15,900,000 | 3,000,000 | $ 12,600,000 | |||||||||
Deferred tax asset | 5,526,000 | 2,750,000 | 5,526,000 | 2,750,000 | ||||||||||
Deferred tax liability | 35,697,000 | 29,817,000 | 35,697,000 | 29,817,000 | ||||||||||
Advertising fund assets, restricted | 112,744,000 | 120,223,000 | 112,744,000 | 120,223,000 | ||||||||||
Revenues | $ 785,965,000 | $ 779,396,000 | $ 785,371,000 | $ 643,642,000 | $ 628,611,000 | $ 624,217,000 | $ 1,082,135,000 | 891,509,000 | 3,432,867,000 | 2,787,979,000 | 2,472,628,000 | |||
Amortization of Debt Issuance Costs | 8,000,000 | 11,000,000 | 6,400,000 | |||||||||||
Debt issuance costs written off | $ 3,400,000 | 5,700,000 | 600,000 | |||||||||||
Percentage of royalty fee payable | 5.50% | 5.50% | ||||||||||||
Operating lease right use asset | $ 230,000,000 | |||||||||||||
Liabilities assumed | $ 1,900,000 | |||||||||||||
January One 2019 [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Revenue, Remaining Performance Obligation, Amount | $ 4,000,000 | 4,000,000 | ||||||||||||
January One 2020 [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Revenue, Remaining Performance Obligation, Amount | 3,100,000 | 3,100,000 | ||||||||||||
January One 2021 [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Revenue, Remaining Performance Obligation, Amount | 2,800,000 | 2,800,000 | ||||||||||||
January One 2022 [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Revenue, Remaining Performance Obligation, Amount | 2,500,000 | 2,500,000 | ||||||||||||
January One 2023 [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Revenue, Remaining Performance Obligation, Amount | 2,200,000 | 2,200,000 | ||||||||||||
January One Thereafter [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Revenue, Remaining Performance Obligation, Amount | 5,300,000 | $ 5,300,000 | ||||||||||||
Domestic Stores [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Percentage of sales contribution | 6.00% | |||||||||||||
Domestic Stores [Member] | Domestic Company Owned Stores [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Cash contributed from company owned store | 5,500,000 | $ 5,500,000 | ||||||||||||
Domestic Stores [Member] | Domestic Franchise [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Advertising fund assets, restricted | 107,200,000 | 107,200,000 | ||||||||||||
Domestic Stores [Member] | Domestic Franchise [Member] | Cash And Investments [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Advertising fund assets, restricted | 95,100,000 | 95,100,000 | ||||||||||||
Domestic Stores [Member] | Domestic Franchise [Member] | Prepaid Expenses [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Advertising fund assets, restricted | 2,300,000 | 2,300,000 | ||||||||||||
Domestic Stores [Member] | Domestic Franchise [Member] | Accounts Receivable [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Advertising fund assets, restricted | 15,300,000 | 15,300,000 | ||||||||||||
International Franchise [Member] | Alaska And Hawaii [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Revenues | 2,600,000 | 2,300,000 | ||||||||||||
Accounting Standards Update 2014-09 [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Contract liability, Current | 2,400,000 | 2,400,000 | ||||||||||||
Contract liability, Noncurrent | 12,600,000 | 12,600,000 | ||||||||||||
Deferred tax asset | 3,500,000 | $ 3,500,000 | ||||||||||||
Term of franchise store agreement | 10 years | |||||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 6,400,000 | $ 6,400,000 | ||||||||||||
Deferred tax liability | 1,600,000 | 1,600,000 | ||||||||||||
Accounting Standards Update 2014-09 [Member] | International Store Opening Fees [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 15,000,000 | 15,000,000 | ||||||||||||
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 | ||||||||||||
2015 Recapitalization [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Debt issuance costs | $ 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 | |||||||||||||
Property Plant and Equipment [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Depreciation and amortization expense | $ 35,000,000 | $ 29,600,000 | $ 27,300,000 | |||||||||||
2018 Dividend [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Common stock dividend declared, per share | $ 2.20 | |||||||||||||
Common stock dividend declared, paid | $ 92,200,000 | |||||||||||||
2017 Dividend [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
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, per share | $ 1.52 | |||||||||||||
Common stock dividend declared, paid | $ 74,000,000 | |||||||||||||
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 | 130,300,000 | 122,900,000 | 130,300,000 | 122,900,000 | ||||||||||
Cash Equivalents Held in Interest Reserve [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Restricted cash and cash equivalent | 36,500,000 | 32,100,000 | 36,500,000 | 32,100,000 | ||||||||||
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 | 200,000 | 100,000 | 200,000 | 100,000 | ||||||||||
Advertising Fund Restricted Cash and Cash Equivalents [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Restricted cash and cash equivalent | 45,000,000 | $ 27,300,000 | 45,000,000 | $ 27,300,000 | ||||||||||
Class A-2 Notes [Member] | 2015 Recapitalization [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Debt issuance costs | $ 17,400,000 | |||||||||||||
Class A-2 Notes [Member] | 2017 Recapitalization [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Debt issuance costs | 16,800,000 | 16,800,000 | ||||||||||||
Class A-2 Notes [Member] | 2018 Recapitalization [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Debt issuance costs | $ 8,200,000 | 8,200,000 | ||||||||||||
Class A-2 Notes [Member] | 2012 Fixed Rate Notes [Member] | 2018 Recapitalization [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Debt issuance costs written off | $ 3,200,000 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Food | $ 42,921 | $ 36,645 |
Equipment and supplies | 3,054 | 3,316 |
Inventories | $ 45,975 | $ 39,961 |
Estimated Useful Lives of Prope
Estimated Useful Lives of Property Plant and Equipment Excluding Capital Lease Asset (Detail) | 12 Months Ended |
Dec. 30, 2018 | |
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 |
Schedule of Contract Liabilitie
Schedule of Contract Liabilities Consist of Deferred Franchise Fees and Deferred Development Fees (Detail) $ in Thousands | 12 Months Ended |
Dec. 30, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Deferred franchise fees and deferred development fees at beginning of period | $ 19,404 |
Revenue recognized during the period | (5,235) |
New deferrals due to cash received and other | 5,731 |
Deferred franchise fees and deferred development fees at end of period | $ 19,900 |
New Accounting Pronouncements -
New Accounting Pronouncements - Cumulative Effects of Changes Made to Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
Other assets: | ||
Deferred income taxes | $ 5,526 | $ 2,750 |
Current liabilities: | ||
Advertising fund liabilities | 107,150 | 120,223 |
Other accrued liabilities | 55,001 | 58,578 |
Long-term liabilities: | ||
Other Accrued Liabilities, Noncurrent | 40,807 | 21,751 |
Stockholders' deficit | ||
Retained deficit | (3,036,471) | (2,739,437) |
Accounting Standards Update 2014-09 [Member] | ||
Other assets: | ||
Deferred income taxes | 3,500 | |
Scenario, Previously Reported [Member] | ||
Other assets: | ||
Deferred income taxes | 3,243 | 2,750 |
Current liabilities: | ||
Advertising fund liabilities | 112,744 | 120,223 |
Other accrued liabilities | 52,396 | 58,578 |
Long-term liabilities: | ||
Other Accrued Liabilities, Noncurrent | 27,447 | 21,751 |
Stockholders' deficit | ||
Retained deficit | $ (3,028,383) | (2,739,437) |
Scenario As Restated [Member] | ||
Other assets: | ||
Deferred income taxes | 4,628 | |
Current liabilities: | ||
Advertising fund liabilities | 113,798 | |
Other accrued liabilities | 60,943 | |
Long-term liabilities: | ||
Other Accrued Liabilities, Noncurrent | 34,390 | |
Stockholders' deficit | ||
Retained deficit | (2,746,138) | |
Adjustments for New Accounting Pronouncement [Member] | Accounting Standards Update 2014-09 [Member] | ||
Other assets: | ||
Deferred income taxes | 1,878 | |
Current liabilities: | ||
Advertising fund liabilities | (6,425) | |
Other accrued liabilities | 2,365 | |
Long-term liabilities: | ||
Other Accrued Liabilities, Noncurrent | 12,639 | |
Stockholders' deficit | ||
Retained deficit | $ (6,701) |
New Accounting Pronouncements_2
New Accounting Pronouncements - Impact of Adoption on Company's Condensed Consolidated Statement of Income and Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Sep. 09, 2018 | Jun. 17, 2018 | Mar. 25, 2018 | Sep. 10, 2017 | Jun. 18, 2017 | Mar. 26, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Revenues: | |||||||||||
Revenues | $ 785,965 | $ 779,396 | $ 785,371 | $ 643,642 | $ 628,611 | $ 624,217 | $ 1,082,135 | $ 891,509 | $ 3,432,867 | $ 2,787,979 | $ 2,472,628 |
General and administrative | 372,464 | 344,759 | 313,649 | ||||||||
U.S. franchise advertising | 358,526 | 0 | 0 | ||||||||
Income from operations | 571,689 | 521,232 | 454,042 | ||||||||
Income before provision for income taxes | 99,248 | 91,197 | 103,670 | 84,551 | 88,532 | 90,514 | 134,563 | 136,556 | 428,678 | 400,153 | 344,658 |
Provision for income taxes | 66,706 | 122,248 | 129,980 | ||||||||
Net income | $ 84,095 | $ 77,408 | $ 88,827 | $ 56,368 | $ 65,741 | $ 62,469 | 111,642 | 93,327 | 361,972 | 277,905 | 214,678 |
Other assets: | |||||||||||
Deferred income taxes | 5,526 | 2,750 | 5,526 | 2,750 | |||||||
Current liabilities: | |||||||||||
Advertising fund liabilities | 107,150 | 120,223 | 107,150 | 120,223 | |||||||
Other accrued liabilities | 55,001 | 58,578 | 55,001 | 58,578 | |||||||
Long-term liabilities: | |||||||||||
Other accrued liabilities | 40,807 | 21,751 | 40,807 | 21,751 | |||||||
Stockholders' deficit | |||||||||||
Retained deficit | (3,036,471) | (2,739,437) | (3,036,471) | (2,739,437) | |||||||
Adjustments for New Accounting Pronouncement [Member] | |||||||||||
Revenues: | |||||||||||
General and administrative | (17,056) | ||||||||||
U.S. franchise advertising | 358,526 | ||||||||||
Income from operations | (1,792) | ||||||||||
Income before provision for income taxes | (1,792) | ||||||||||
Provision for income taxes | (405) | ||||||||||
Net income | (1,387) | ||||||||||
Other assets: | |||||||||||
Deferred income taxes | 2,283 | 2,283 | |||||||||
Current liabilities: | |||||||||||
Advertising fund liabilities | (5,594) | (5,594) | |||||||||
Other accrued liabilities | 2,605 | 2,605 | |||||||||
Long-term liabilities: | |||||||||||
Other accrued liabilities | 13,360 | 13,360 | |||||||||
Stockholders' deficit | |||||||||||
Retained deficit | (8,088) | (8,088) | |||||||||
U S Stores [Member] | U S Franchise Royalties and Fees [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 391,493 | ||||||||||
U S Stores [Member] | U S Franchise Royalties and Fees [Member] | Adjustments for New Accounting Pronouncement [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | (17,886) | ||||||||||
U S Stores [Member] | U S Franchise Advertising [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 358,526 | ||||||||||
U.S. franchise advertising | 358,526 | ||||||||||
U S Stores [Member] | U S Franchise Advertising [Member] | Adjustments for New Accounting Pronouncement [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 358,526 | ||||||||||
International Franchise [Member] | International Franchise Royalties and Fees [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 224,747 | 206,708 | $ 176,999 | ||||||||
International Franchise [Member] | International Franchise Royalties and Fees [Member] | Adjustments for New Accounting Pronouncement [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | (961) | ||||||||||
Scenario, Previously Reported [Member] | |||||||||||
Revenues: | |||||||||||
General and administrative | 389,520 | ||||||||||
Income from operations | 573,481 | ||||||||||
Income before provision for income taxes | 430,470 | ||||||||||
Provision for income taxes | 67,111 | ||||||||||
Net income | 363,359 | ||||||||||
Other assets: | |||||||||||
Deferred income taxes | 3,243 | 2,750 | 3,243 | 2,750 | |||||||
Current liabilities: | |||||||||||
Advertising fund liabilities | 112,744 | 120,223 | 112,744 | 120,223 | |||||||
Other accrued liabilities | 52,396 | 58,578 | 52,396 | 58,578 | |||||||
Long-term liabilities: | |||||||||||
Other accrued liabilities | 27,447 | 21,751 | 27,447 | 21,751 | |||||||
Stockholders' deficit | |||||||||||
Retained deficit | $ (3,028,383) | $ (2,739,437) | (3,028,383) | $ (2,739,437) | |||||||
Scenario, Previously Reported [Member] | U S Stores [Member] | U S Franchise Royalties and Fees [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 409,379 | ||||||||||
Scenario, Previously Reported [Member] | International Franchise [Member] | International Franchise Royalties and Fees [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | $ 225,708 |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Sep. 09, 2018 | Jun. 17, 2018 | Mar. 25, 2018 | Sep. 10, 2017 | Jun. 18, 2017 | Mar. 26, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net income available to common stockholders - basic and diluted | $ 84,095 | $ 77,408 | $ 88,827 | $ 56,368 | $ 65,741 | $ 62,469 | $ 111,642 | $ 93,327 | $ 361,972 | $ 277,905 | $ 214,678 |
Weighted average number of common shares | 41,856,017 | 45,954,659 | 48,647,167 | ||||||||
Earnings per common share - basic | $ 2.02 | $ 1.84 | $ 2.07 | $ 1.22 | $ 1.37 | $ 1.31 | $ 2.71 | $ 2.17 | $ 8.65 | $ 6.05 | $ 4.41 |
Diluted weighted average number of common shares | 43,331,278 | 47,677,834 | 49,923,859 | ||||||||
Earnings per common share - diluted | $ 1.95 | $ 1.78 | $ 2 | $ 1.18 | $ 1.32 | $ 1.26 | $ 2.62 | $ 2.09 | $ 8.35 | $ 5.83 | $ 4.30 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Stock Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive Securities Excluded from Computation of Earnings Per Share | 76,686 | 145,860 | 121,075 |
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 | 81,545 | 110,274 | 134,113 |
Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive Securities Excluded from Computation of Earnings Per Share | 28,570 |
Carrying Amounts and Fair Value
Carrying Amounts and Fair Values of Certain Assets (Detail) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents, carrying amount | $ 11,877 | $ 7,933 |
Restricted cash equivalents, carrying amount | 112,272 | 96,375 |
Investments in marketable securities, carrying amount | 8,718 | 8,119 |
Advertising fund cash equivalents, restricted, carrying amount | 31,547 | 19,945 |
Advertising fund investments, restricted, carrying amount | 50,152 | 74,007 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents, carrying amount | 11,877 | 7,933 |
Restricted cash equivalents, carrying amount | 112,272 | 96,375 |
Investments in marketable securities, carrying amount | 8,718 | 8,119 |
Advertising fund cash equivalents, restricted, fair value | 31,547 | 19,945 |
Advertising fund investments, restricted, fair value | $ 50,152 | $ 74,007 |
Recapitalizations and Financi_3
Recapitalizations and Financing Arrangements - Additional Information (Detail) $ in Thousands | Apr. 24, 2018USD ($) | Jul. 24, 2017USD ($) | Mar. 26, 2017 | Dec. 30, 2018USD ($) | Dec. 31, 2017USD ($)Renewals | Jan. 01, 2017USD ($) | Jan. 03, 2016USD ($) | Aug. 02, 2017USD ($) | Oct. 27, 2015USD ($) | Oct. 21, 2015USD ($) |
Debt Instrument [Line Items] | ||||||||||
Scheduled principal payments in year 2019 | $ 35,893 | |||||||||
Scheduled principal payments in year 2020 | 35,956 | |||||||||
Scheduled principal payments in year 2021 | 36,026 | |||||||||
Scheduled principal payments in year 2022 | 953,856 | |||||||||
Scheduled principal payments in year 2023 | 27,195 | |||||||||
Letters of credit | 48,100 | $ 46,700 | ||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 6,400 | |||||||||
Company wrote-off In connection with the Recapitalization | 3,400 | 5,700 | $ 600 | |||||||
Interest expense | 146,345 | 122,541 | $ 110,069 | |||||||
ASR Agreement on August 03 2017 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Accelerated share repurchase, agreement amount | 1,000,000 | $ 1,000,000 | ||||||||
Variable Funding note [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Line of Credit, Noncurrent | 65,000 | |||||||||
2015 Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal payments on the Notes | 492,500 | |||||||||
2015 Class Five-Year Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument face amount | 492,500 | |||||||||
2015 Ten-Year Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument face amount | 780,000 | $ 788,000 | ||||||||
2018 Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument face amount | $ 425,000 | |||||||||
Debt instrument, term | 7 years 6 months | |||||||||
Debt instrument, stated percentage | 4.116% | |||||||||
Gross proceeds from the issuance of debt | $ 825,000 | |||||||||
Repayment of principal and interest | 490,100 | |||||||||
Principal payments on the Notes | 4,100 | |||||||||
Debt issuance costs | 8,200 | |||||||||
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] | 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 | |||||||||
2012 Recapitalization [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayment of principal and interest | $ 910,500 | |||||||||
2017 Recapitalization [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Gross proceeds from the issuance of debt | $ 1,900,000 | |||||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 3,800 | |||||||||
Company wrote-off In connection with the Recapitalization | 5,500 | |||||||||
Interest expense | 100 | 300 | ||||||||
Other net 2015 Recapitalization-related general and administrative expenses | 500 | 600 | ||||||||
Debt issuance costs | $ 16,800 | |||||||||
2017 Recapitalization [Member] | 2017 Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, stated percentage | 5.00% | |||||||||
Scheduled principal payments in year 2019 | 19,000 | |||||||||
Scheduled principal payments in year 2020 | 19,000 | |||||||||
Scheduled principal payments in year 2021 | 19,000 | |||||||||
Scheduled principal payments in year 2022 | 871,800 | |||||||||
Scheduled principal payments in year 2023 | 10,000 | |||||||||
Scheduled principal payments in year 2024 | 10,000 | |||||||||
Scheduled principal payments in year 2025 | 10,000 | |||||||||
Scheduled principal payments in year 2026 | 10,000 | |||||||||
Scheduled principal payments in year 2027 | 907,500 | |||||||||
Principal payments on the Notes | 19,000 | |||||||||
2017 Recapitalization [Member] | 2017 Variable Funding Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate spread | 5.00% | |||||||||
Variable funding notes | $ 175,000 | |||||||||
Number of renewals | Renewals | 2 | |||||||||
Term of renewals | 1 year | |||||||||
Letters of credit | 65,000 | |||||||||
Line of Credit, Current Borrowing Capacity | 48,100 | |||||||||
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 | 50.00% | |||||||||
2017 Recapitalization [Member] | 2017 Variable Funding Notes [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable fund notes, unused portion, commitment fee percentage | 100.00% | |||||||||
2017 Recapitalization [Member] | 2017 Variable Funding Notes [Member] | Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable funding notes | 61,900 | |||||||||
2017 Recapitalization [Member] | 2017 Floating Rate Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument face amount | $ 300,000 | |||||||||
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. | |||||||||
2017 Recapitalization [Member] | 2017 Five-Year Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument face amount | $ 600,000 | |||||||||
Debt instrument, stated percentage | 3.082% | |||||||||
2017 Recapitalization [Member] | 2017 Ten-Year Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument face amount | $ 1,000,000 | |||||||||
Debt instrument, stated percentage | 4.118% | |||||||||
2018 Recapitalization [Member] | 2018 Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Scheduled principal payments in year 2019 | 8,300 | |||||||||
Scheduled principal payments in year 2020 | 8,300 | |||||||||
Scheduled principal payments in year 2021 | 8,300 | |||||||||
Scheduled principal payments in year 2022 | 8,300 | |||||||||
Scheduled principal payments in year 2023 | 8,300 | |||||||||
Scheduled principal payments in year 2024 | 8,300 | |||||||||
Scheduled principal payments in year 2025 | 401,400 | |||||||||
Scheduled principal payments in year 2026 | 4,000 | |||||||||
Scheduled principal payments in year 2027 | $ 366,000 | |||||||||
2015 Recapitalization [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument face amount | $ 1,300,000 | |||||||||
Accelerated share repurchase, agreement amount | $ 600,000 | |||||||||
Interest expense | $ 400 | |||||||||
Other net 2015 Recapitalization-related general and administrative expenses | 900 | |||||||||
Debt issuance costs | 17,400 | |||||||||
Recapitalization expenses | 8,100 | |||||||||
Expenses related to write-offs of deferred financing fees, bond discount and interest rate swap related to extinguished debt | $ 6,900 | |||||||||
2015 Recapitalization [Member] | 2015 Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, stated percentage | 5.00% | |||||||||
Scheduled principal payments in year 2019 | $ 8,000 | |||||||||
Scheduled principal payments in year 2020 | 8,000 | |||||||||
Scheduled principal payments in year 2021 | 8,000 | |||||||||
Scheduled principal payments in year 2022 | 8,000 | |||||||||
Scheduled principal payments in year 2023 | 8,000 | |||||||||
Scheduled principal payments in year 2024 | 8,000 | |||||||||
Scheduled principal payments in year 2025 | 732,000 | |||||||||
2015 Recapitalization [Member] | 2015 Class Five-Year Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument face amount | $ 500,000 | |||||||||
Debt instrument, stated percentage | 3.484% | |||||||||
2015 Recapitalization [Member] | 2015 Ten-Year Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument face amount | $ 800,000 | |||||||||
Debt instrument, stated percentage | 4.474% | |||||||||
2015 Recapitalization [Member] | 2015 Variable Funding Notes [Member] | Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable funding notes | $ 125,000 | |||||||||
2018 A-2-II Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument face amount | $ 400,000 | |||||||||
Debt instrument, term | 9 years 3 months | |||||||||
Debt instrument, stated percentage | 4.328% | |||||||||
2018 Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Company wrote-off In connection with the Recapitalization | 3,200 | |||||||||
Debt issuance costs | 8,200 | |||||||||
2015 Ten Year Fixed Rate Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal payments on the Notes | $ 8,000 | |||||||||
2018 9.25 Year Fixed Rate Notes [Member] | 2018 Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, stated percentage | 5.00% |
Consolidated Long-Term Debt (De
Consolidated Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
Long Term Debt And Other Financing Arrangement [Line Items] | ||
Capital lease obligations | $ 17,006 | $ 5,437 |
Debt issuance costs, net of accumulated amortization of $8.2 million in 2018 and $6.8 million in 2017 | (27,547) | (27,373) |
Total debt | 3,531,584 | 3,153,814 |
Less - current portion | 35,893 | 32,324 |
Consolidated long-term debt, net of debt issuance costs | 3,495,691 | 3,121,490 |
3.484% Class A-2-I Notes; repaid in connection with the 2018 Recapitalization | ||
Long Term Debt And Other Financing Arrangement [Line Items] | ||
Senior notes | 492,500 | |
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 | 780,000 | 788,000 |
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 | 592,500 | 598,500 |
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 | 987,500 | 997,500 |
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 | 296,250 | 299,250 |
4.116% Class A-2-I Notes; expected repayment date October 2025; legal final maturity July 2048 | ||
Long Term Debt And Other Financing Arrangement [Line Items] | ||
Senior notes | 422,875 | |
4.328% Class A-2-II Notes; expected repayment date July 2027; legal final maturity July 2048 | ||
Long Term Debt And Other Financing Arrangement [Line Items] | ||
Senior notes | 398,000 | |
2017 Variable Funding Notes [Member] | ||
Long Term Debt And Other Financing Arrangement [Line Items] | ||
Variable Funding Notes | $ 65,000 | $ 0 |
Maturities of Long-Term Debt an
Maturities of Long-Term Debt and Capital Lease Obligations (Detail) $ in Thousands | Dec. 30, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,019 | $ 35,893 |
2,020 | 35,956 |
2,021 | 36,026 |
2,022 | 953,856 |
2,023 | 27,195 |
Thereafter | 2,470,205 |
Maturities of long term debt and capital obligations, Total | $ 3,559,131 |
Schedule of Estimated Fair Valu
Schedule of Estimated Fair Value (Detail) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
2015 Class Five-Year Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | $ 492,500 | |
Fair Value | 494,470 | |
2015 Ten-Year Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | $ 780,000 | 788,000 |
Fair Value | 783,120 | 821,884 |
2017 Five-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 592,500 | 598,500 |
Fair Value | 575,910 | 592,515 |
2017 Ten-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 987,500 | 997,500 |
Fair Value | 956,888 | 1,023,435 |
2017 Five-Year Floating Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 296,250 | 299,250 |
Fair Value | 295,065 | $ 300,746 |
2018 7.5-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 422,875 | |
Fair Value | 416,955 | |
2018 9.25-Year Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 398,000 | |
Fair Value | $ 396,010 |
Future Minimum Rental Commitmen
Future Minimum Rental Commitments for All Non-Cancelable Leases (Detail) $ in Thousands | Dec. 30, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019, Operating Leases | $ 40,752 |
2020, Operating Leases | 37,519 |
2021, Operating Leases | 34,538 |
2022, Operating Leases | 30,763 |
2023, Operating Leases | 27,388 |
Thereafter, Operating Leases | 100,310 |
Total future minimum rental commitments, Operating Leases | 271,270 |
2019, Capital Leases | 2,396 |
2020, Capital Leases | 2,415 |
2021, Capital Leases | 2,433 |
2022, Capital Leases | 2,451 |
2023, Capital Leases | 2,474 |
Thereafter, Capital Leases | 23,781 |
Total future minimum rental commitments, Capital Leases | 35,950 |
Less - amounts representing interest, Capital Leases | (18,944) |
Total principal payable on capital leases | 17,006 |
2019, Operating and Capital Leases | 43,148 |
2020, Operating and Capital Leases | 39,934 |
2021,Operating and Capital Leases | 36,971 |
2022, Operating and Capital Leases | 33,214 |
2023, Operating and Capital Leases | 29,862 |
Thereafter, Operating and Capital Leases | 124,091 |
Total future minimum rental commitments, Operating and Capital Leases | $ 307,220 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | Feb. 14, 2011 | Dec. 30, 2018 |
Commitment And Contingencies [Line Items] | ||
Future minimum rental commitments | $ 271,270 | |
Operating Lease [Member] | ||
Commitment And Contingencies [Line Items] | ||
Future minimum rental commitments | $ 39,100 | |
Lease terms | 15 years | |
Finance Lease [Member] | ||
Commitment And Contingencies [Line Items] | ||
Future minimum rental commitments | $ 28,700 | |
Lease terms | 15 years | |
Yvonne Wiederhold [Member] | ||
Commitment And Contingencies [Line Items] | ||
Amount delivered for plaintiff | $ 10,100 | |
Percentage liable by company for plaintiff | 90.00% | |
Litigation settlement, amount | $ 8,900 |
Income Before Provision for Inc
Income Before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 414,804 | $ 386,989 | $ 334,892 |
Foreign | 13,874 | 13,164 | 9,766 |
Income before provision for income taxes | $ 428,678 | $ 400,153 | $ 344,658 |
Differences Between Statutory I
Differences Between Statutory Income Tax Provision and Consolidated Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Federal income tax provision based on the statutory rate | $ 90,022 | $ 140,054 | $ 120,630 |
State and local income taxes, net of related Federal income taxes | 14,233 | 11,520 | 9,787 |
Non-resident withholding and foreign income taxes | 21,369 | 20,210 | 17,275 |
Foreign tax and other tax credits | (25,301) | (23,324) | (20,049) |
Foreign derived intangible income | (11,760) | ||
Excess tax benefits from equity-based compensation | (23,786) | (27,227) | |
Non-deductible expenses, net | 1,999 | 1,794 | 1,579 |
Unrecognized tax provision (benefit), net of related Federal income taxes | 301 | (173) | (98) |
Other | (371) | (606) | 856 |
Provision for income taxes | $ 66,706 | $ 122,248 | $ 129,980 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | |
Schedule Of Income Taxes [Line Items] | ||||
Provision for income taxes | $ 66,706 | $ 122,248 | $ 129,980 | |
Unrecognized tax benefits | 1,964 | 1,837 | $ 1,954 | $ 2,115 |
Unrecognized tax benefits that would impact effective tax rate | 1,800 | 1,500 | ||
Unrecognized tax benefits, interest on income taxes accrued | $ 100 | $ 100 | ||
Corporate income tax rate | 21.00% | 35.00% | 35.00% | |
Foreign tax credit carry forward | $ 4,600 | $ 0 | ||
Accounting Standards Update 2016-09 [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Provision for income taxes | $ 23,800 | $ 27,200 |
Components of Consolidated Prov
Components of Consolidated Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Income Tax Disclosure [Abstract] | |||
Current provision | $ 33,558 | $ 81,747 | $ 100,673 |
Deferred provision (benefit) | (1,543) | 6,732 | (3,096) |
Total provision for Federal income taxes | 32,015 | 88,479 | 97,577 |
Current provision | 12,651 | 14,131 | 15,091 |
Deferred provision (benefit) | 671 | (572) | 37 |
Total provision for state and local income taxes | 13,322 | 13,559 | 15,128 |
Provision for non-resident withholding and foreign income taxes | 21,369 | 20,210 | 17,275 |
Provision for income taxes | $ 66,706 | $ 122,248 | $ 129,980 |
Significant Components of Net D
Significant Components of Net Deferred Income Taxes (Detail) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
Components Of Deferred Income Tax Assets And Liabilities [Line Items] | ||
Insurance reserves | $ 10,253 | $ 9,957 |
Equity compensation | 9,705 | 9,277 |
Other accruals and reserves | 10,636 | 8,532 |
Foreign tax credit | 4,600 | 0 |
Other | 6,029 | 4,801 |
Total deferred income tax assets | 41,223 | 32,567 |
Depreciation, amortization and asset basis differences | 10,505 | 4,655 |
Capitalized software | 25,192 | 22,248 |
Gain on debt extinguishments | 2,914 | |
Total deferred income tax liabilities | 35,697 | 29,817 |
Net deferred income taxes | $ 5,526 | $ 2,750 |
Unrecognized Tax Benefits (Deta
Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Income Tax Disclosure [Abstract] | |||
Balance, beginning | $ 1,837 | $ 1,954 | $ 2,115 |
Additions for tax positions of current year | 425 | 224 | 209 |
Additions for tax positions of prior years | 115 | 42 | |
Changes in prior year tax positions | (64) | (10) | (33) |
Lapses of applicable statute of limitations | (349) | (373) | (337) |
Balance, ending | $ 1,964 | $ 1,837 | $ 1,954 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Nonqualified Deferred Compensation Plan [Member] | Base Salary [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of defer on compensation | 40.00% | |||
Nonqualified Deferred Compensation Plan [Member] | Bonus Compensation [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of defer on compensation | 80.00% | |||
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 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 | $ 7.3 | $ 6.1 | $ 5.2 | |
401(K) [Member] | Scenario, Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan requires to match elective deferrals, higher | 100.00% | |||
Employee's elective deferrals higher percentage | 5.00% | |||
Employee Stock Purchase Discount Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions to the plan, value | $ 0.7 | $ 0.7 | $ 0.5 | |
Percentage of wages deduction from eligible employees | 15.00% | |||
Percentage of face value on stock purchase | 85.00% | |||
Shares purchased on the open market | 19,494 | 21,744 | 23,317 | |
Weighted-average price of shares purchased on the open market | $ 249.57 | $ 188.57 | $ 131.74 |
Financial Instruments With Of_2
Financial Instruments With Off-Balance Sheet Risk - Additional Information (Detail) - USD ($) | Dec. 30, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
Letters of credit | $ 48,100,000 | $ 46,700,000 |
Potential future payments | $ 2,400,000 | $ 1,500,000 |
Equity Incentive Plans - Additi
Equity Incentive Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-cash compensation expense | $ 22,792 | $ 20,713 | $ 18,564 | ||
Deferred tax benefit related to non-cash compensation expense | $ 4,000 | $ 5,200 | |||
Stock options outstanding | 1,909,399 | 2,238,114 | 2,498,310 | 3,323,476 | |
Total intrinsic value of stock options exercised | $ 91,200 | $ 62,000 | $ 128,000 | ||
Cash received from exercise of stock options | 9,832 | 6,099 | 15,234 | ||
Tax benefit realized from stock options exercised | $ 22,000 | $ 23,000 | $ 46,100 | ||
Restricted stock granted | [1] | 91,430 | 72,250 | 97,650 | |
General and Administrative Expense [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-cash compensation expense | $ 6,300 | $ 6,800 | $ 4,900 | ||
Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost | $ 7,800 | ||||
Weighted average period over which the unrecognized compensation will be recognized | 2 years 9 months 18 days | ||||
Performance Based Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-cash compensation expense | $ 14,600 | $ 13,100 | $ 12,800 | ||
Unrecognized compensation cost | $ 27,200 | ||||
Employees [Member] | Performance Based Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock granted | 59,070 | 67,840 | 90,730 | ||
Board of Directors [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock granted | 3,790 | 4,410 | 6,920 | ||
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 | 2,708,278 | ||||
Stock options outstanding | 1,909,399 | ||||
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 | $ 800 | $ 900 | ||
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 | ||||
Restricted Stock Units (RSUs) [Member] | Executive Officer [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-cash compensation expense | $ 1,100 | ||||
Restricted stock granted | 28,570 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 7,000 | ||||
[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. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Common Stock Options Outstanding | |||
Common Stock Options, beginning balance | 2,238,114 | 2,498,310 | 3,323,476 |
Common Stock Options, granted | 96,580 | 126,720 | 233,280 |
Common Stock Options, cancelled | (11,193) | (28,991) | (12,798) |
Common Stock Options, exercised | (414,102) | (357,925) | (1,045,648) |
Common Stock Options, ending balance | 1,909,399 | 2,238,114 | 2,498,310 |
Common Stock Options, Exercisable at end of period | 1,698,583 | ||
Common Stock Options Weighted Average Exercise Price | |||
Weighted Average Exercise Price, beginning balance | $ 55.94 | $ 43.54 | $ 28.57 |
Weighted Average Exercise Price, Stock options granted | 266.11 | 201.19 | 129.42 |
Weighted Average Exercise Price, Stock options cancelled | 174.63 | 101.97 | 104.23 |
Weighted Average Exercise Price, Stock options exercised | 23.74 | 17.05 | 14.38 |
Weighted Average Exercise Price, ending balance | 72.86 | $ 55.94 | $ 43.54 |
Weighted Average Exercise Price, Exercisable at end of period | $ 56.40 | ||
Weighted Average Remaining Life (Years) | 4 years 6 months | ||
Weighted Average Remaining Life (Years), Exercisable at end of period | 4 years | ||
Stock options, Aggregate Intrinsic Value, ending balance | $ 340,555 | ||
Stock options, Aggregate Intrinsic Value, Exercisable at end of period | $ 328,788 |
Stock Options Valuation Assumpt
Stock Options Valuation Assumptions (Detail) - $ / shares | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Risk-free interest rate | 2.70% | 2.00% | 1.30% |
Expected life (years) | 5 years 6 months | 5 years 6 months | 5 years 6 months |
Expected volatility | 24.20% | 25.80% | 26.00% |
Expected dividend yield | 0.80% | 0.90% | 1.20% |
Weighted average fair value per stock option | $ 67.65 | $ 49.57 | $ 29.59 |
Restricted Stock and Performanc
Restricted Stock and Performance-Based Restricted Stock Activity Related to Equity Incentive Plans (Detail) - $ / shares | 12 Months Ended | |||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | ||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Restricted Stock, Nonvested Shares at beginning of period | 194,604 | 276,220 | 316,332 | |
Restricted Stock, Nonvested Shares granted | [1] | 91,430 | 72,250 | 97,650 |
Restricted Stock, Nonvested Shares cancelled | (12,692) | (16,109) | (13,970) | |
Restricted Stock, Nonvested Shares vested | (82,963) | (137,757) | (123,792) | |
Restricted Stock, Nonvested Shares at end of period | 190,379 | 194,604 | 276,220 | |
Weighted Average Grant Date Fair Value at beginning of period | $ 147.94 | $ 97.48 | $ 75.74 | |
Weighted Average Grant Date Fair Value, granted | [1] | 271.33 | 205.21 | 131.75 |
Weighted Average Grant Date Fair Value, cancelled | 178.06 | 115.71 | 88.34 | |
Weighted Average Grant Date Fair Value, vested | 128.57 | 80.55 | 70.39 | |
Weighted Average Grant Date Fair Value at end of period | $ 213.57 | $ 147.94 | $ 97.48 | |
[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 ($) $ / shares in Units, $ in Thousands | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Feb. 14, 2019 | Mar. 27, 2016 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Mar. 25, 2018 | Aug. 02, 2017 | Oct. 27, 2015 | |
Components Of Common Stock [Line Items] | ||||||||
Share repurchase program, approved amount | $ 750,000 | |||||||
Common stock repurchased and retired (in shares) | 2,387,430 | 5,576,249 | 2,816,716 | |||||
Repurchased common stock, value | $ 591,212 | $ 1,064,253 | $ 300,250 | |||||
Stock repurchase remaining authorized repurchase amount | $ 158,800 | |||||||
Common stock, shares authorized | 170,000,000 | 170,000,000 | ||||||
Subsequent Event [Member] | ||||||||
Components Of Common Stock [Line Items] | ||||||||
Common stock repurchased and retired (in shares) | 33,549 | |||||||
Common Stock Repurchased and Retired (Per Share) | $ 242.74 | |||||||
Retired Stock Repurchased Value | $ 8,100 | |||||||
ASR Agreement on August 03 2017 [Member] | ||||||||
Components Of Common Stock [Line Items] | ||||||||
Accelerated share repurchase agreement | $ 1,000,000 | $ 1,000,000 | ||||||
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 | |||||||
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 | $ 750,000 | |||||||
2017 Recapitalization [Member] | ASR Agreement on August 03 2017 [Member] | ||||||||
Components Of Common Stock [Line Items] | ||||||||
Stock Repurchased During Period Value | $ 1,000,000 | |||||||
2015 Recapitalization [Member] | ||||||||
Components Of Common Stock [Line Items] | ||||||||
Accelerated share repurchase agreement | $ 600,000 |
Share Components of Outstanding
Share Components of Outstanding Common Stock (Detail) - shares | Dec. 30, 2018 | Dec. 31, 2017 |
Components Of Common Stock [Line Items] | ||
Total Common Stock | 40,977,561 | 42,898,329 |
Voting [Member] | ||
Components Of Common Stock [Line Items] | ||
Total Common Stock | 40,974,200 | 42,881,905 |
Non-Voting [Member] | ||
Components Of Common Stock [Line Items] | ||
Total Common Stock | 3,361 | 16,424 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
Dec. 30, 2018USD ($)Segment | Dec. 31, 2017USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segments | Segment | 3 | |
Recognition Of Revenue | $ 358,500 | |
Advertising Fund Assets, Restricted | $ 112,744 | $ 120,223 |
Financial Information by Operat
Financial Information by Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | |||||||||
Sep. 09, 2018 | Jun. 17, 2018 | Mar. 25, 2018 | Sep. 10, 2017 | Jun. 18, 2017 | Mar. 26, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | $ 785,965 | $ 779,396 | $ 785,371 | $ 643,642 | $ 628,611 | $ 624,217 | $ 1,082,135 | $ 891,509 | $ 3,432,867 | $ 2,787,979 | $ 2,472,628 | |
Segment Income | 643,941 | 583,788 | 511,609 | |||||||||
Income from Operations | 571,689 | 521,232 | 454,042 | |||||||||
Capital Expenditures | 119,674 | 90,257 | 61,537 | |||||||||
Supply Chain [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 1,943,297 | 1,739,038 | 1,544,345 | |||||||||
Operating Segments [Member] | U.S. Stores [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | [1] | 1,264,823 | 842,233 | 751,284 | ||||||||
Segment Income | [1] | 335,989 | 306,406 | 271,794 | ||||||||
Income from Operations | [1] | 329,044 | 298,852 | 261,826 | ||||||||
Capital Expenditures | [1] | 15,717 | 20,579 | 18,225 | ||||||||
Operating Segments [Member] | Supply Chain [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 2,087,408 | 1,874,943 | 1,669,000 | |||||||||
Segment Income | 176,714 | 163,077 | 144,130 | |||||||||
Income from Operations | 162,392 | 151,622 | 133,745 | |||||||||
Capital Expenditures | 61,652 | 34,123 | 11,527 | |||||||||
Operating Segments [Member] | International Franchise [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | [2] | 224,747 | 206,708 | 176,999 | ||||||||
Segment Income | [2] | 174,700 | 161,263 | 138,487 | ||||||||
Income from Operations | [2] | 174,503 | 161,066 | 138,306 | ||||||||
Capital Expenditures | [2] | 134 | 28 | 642 | ||||||||
Intersegment Revenues [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | (144,111) | (135,905) | (124,655) | |||||||||
Segment Reconciling [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Segment Income | (43,462) | (46,958) | (42,802) | |||||||||
Income from Operations | (94,250) | (90,308) | (79,835) | |||||||||
Capital Expenditures | $ 42,171 | $ 35,527 | $ 31,143 | |||||||||
[1] | The adoption of ASC 606 in 2018 resulted in the recognition of $358.5 million in revenue in 2018 related to U.S. franchise contributions to DNAF. In prior years, under accounting standards in effect at that time, the Company had presented these contributions net with the related disbursements in its consolidated statement of income. Refer to Note 1 to the consolidated financial statements for additional information related to the adoption of this new accounting standard. | |||||||||||
[2] | In 2018, the Company began managing its franchised stores in Alaska and Hawaii as part of its U.S. Stores segment. Prior to 2018, store counts, retail sales and royalty revenues from these franchised stores were included in the Company’s international operations in the table above. Consolidated results of the Company have not been impacted by this change and prior year amounts have not been reclassified to conform to the current year presentation due to immateriality. |
Reconciliation of Total Segment
Reconciliation of Total Segment Income to Consolidated Income Before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Segment Reconciliation [Abstract] | |||
Total Segment Income | $ 643,941 | $ 583,788 | $ 511,609 |
Depreciation and amortization | (53,665) | (44,369) | (38,140) |
Gain (loss) on sale/disposal of assets | 4,737 | 3,148 | (863) |
Non-cash compensation expense | (22,792) | (20,713) | (18,564) |
Recapitalization-related expenses | (532) | (622) | |
Income from operations | 571,689 | 521,232 | 454,042 |
INTEREST INCOME | 3,334 | 1,462 | 685 |
Interest expense | (146,345) | (122,541) | (110,069) |
Income before provision for income taxes | $ 428,678 | $ 400,153 | $ 344,658 |
Identifiable Asset Information
Identifiable Asset Information (Detail) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Asset | $ 907,385 | $ 836,753 |
U.S. Stores [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Asset | 211,554 | 216,994 |
U.S. Supply Chain [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Asset | 283,351 | 206,059 |
Total U.S. Assets [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Asset | 494,905 | 423,053 |
International Franchise [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Asset | 21,094 | 19,728 |
International Supply Chain [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Asset | 24,049 | 24,925 |
Total International Assets [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Asset | 45,143 | 44,653 |
Segment Reconciling [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Asset | $ 367,337 | $ 369,047 |
Goodwill (Detail)
Goodwill (Detail) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Goodwill | $ 14,919 | $ 15,423 |
U.S. Stores [Member] | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 13,852 | 14,356 |
Supply Chain [Member] | ||
Segment Reporting Information [Line Items] | ||
Goodwill | $ 1,067 | $ 1,067 |
Sale and Closure of Company-O_2
Sale and Closure of Company-Owned Stores - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018USD ($)Store | Dec. 31, 2017USD ($)Store | Jan. 01, 2017USD ($)Store | |
Sales Concentration [Line Items] | |||
Number of company-owned stores sold | Store | 12 | 17 | |
Pre-tax gain on sale of assets, net of goodwill reduction, charged to general and administrative expenses | $ 5,900 | $ 4,000 | |
Reduction of goodwill related to sale of stores | 400 | 600 | |
Proceeds from sale of assets | 8,367 | 6,835 | $ 4,936 |
Number of stores closed | Store | 1 | ||
Reduction of goodwill related to restructuring | $ 100 | ||
Franchisee [Member] | |||
Sales Concentration [Line Items] | |||
Pre-tax gain on sale of assets, net of goodwill reduction, charged to general and administrative expenses | 100 | ||
Reduction of goodwill related to sale of stores | 100 | ||
Proceeds from sale of assets | $ 300 | ||
Number of stores closed | Store | 2 | ||
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 Eighteen [Member] | |||
Sales Concentration [Line Items] | |||
Proceeds from sale of assets | $ 7,900 |
Periodic Financial Data (Detail
Periodic Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Sep. 09, 2018 | Jun. 17, 2018 | Mar. 25, 2018 | Sep. 10, 2017 | Jun. 18, 2017 | Mar. 26, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Quarterly Financial Data [Abstract] | |||||||||||
Total revenues | $ 785,965 | $ 779,396 | $ 785,371 | $ 643,642 | $ 628,611 | $ 624,217 | $ 1,082,135 | $ 891,509 | $ 3,432,867 | $ 2,787,979 | $ 2,472,628 |
Operating margin | 295,279 | 293,580 | 299,865 | 198,478 | 192,845 | 193,816 | 413,955 | 280,852 | 1,302,679 | 865,991 | 767,691 |
Income before provision for income taxes | 99,248 | 91,197 | 103,670 | 84,551 | 88,532 | 90,514 | 134,563 | 136,556 | 428,678 | 400,153 | 344,658 |
Net income | $ 84,095 | $ 77,408 | $ 88,827 | $ 56,368 | $ 65,741 | $ 62,469 | $ 111,642 | $ 93,327 | $ 361,972 | $ 277,905 | $ 214,678 |
Earnings per common share - basic | $ 2.02 | $ 1.84 | $ 2.07 | $ 1.22 | $ 1.37 | $ 1.31 | $ 2.71 | $ 2.17 | $ 8.65 | $ 6.05 | $ 4.41 |
Earnings per common share - diluted | 1.95 | 1.78 | 2 | 1.18 | 1.32 | 1.26 | 2.62 | 2.09 | 8.35 | 5.83 | 4.30 |
Common stock dividends declared per share | $ 0.55 | $ 0.55 | $ 0.55 | $ 0.46 | $ 0.46 | $ 0.46 | $ 0.55 | $ 0.46 | $ 2.20 | $ 1.84 | $ 1.52 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 2 Months Ended | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Feb. 14, 2019 | Sep. 09, 2018 | Jun. 17, 2018 | Mar. 25, 2018 | Sep. 10, 2017 | Jun. 18, 2017 | Mar. 26, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Subsequent Event [Line Items] | ||||||||||||
Dividends declared per share | $ 0.55 | $ 0.55 | $ 0.55 | $ 0.46 | $ 0.46 | $ 0.46 | $ 0.55 | $ 0.46 | $ 2.20 | $ 1.84 | $ 1.52 | |
Subsequent Event [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Dividends declared per share | $ 0.65 | |||||||||||
Dividend declaration date | Feb. 20, 2019 | |||||||||||
Record date of dividend | Mar. 15, 2019 | |||||||||||
Dividend payable date | Mar. 29, 2019 | |||||||||||
Borrowings Repaid | $ 15 | |||||||||||
Outstanding Borrowings Amount | $ 50 |
Parent Company Condensed Balanc
Parent Company Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 03, 2016 |
ASSETS: | ||||
Cash | $ 25,438 | $ 35,768 | $ 42,815 | $ 133,449 |
Total assets | 907,385 | 836,753 | ||
LIABILITIES: | ||||
Total liabilities | 3,947,306 | 3,572,137 | ||
STOCKHOLDERS' DEFICIT: | ||||
Common stock, par value $0.01 per share; 170,000,000 shares authorized; 40,977,561 in 2018 and 42,898,329 in 2017 issued and outstanding | 410 | 429 | ||
Preferred stock, par value $0.01 per share; 5,000,000 shares authorized, none issued | ||||
Additional paid-in capital | 569 | 5,654 | ||
Retained deficit | (3,036,471) | (2,739,437) | ||
Accumulated other comprehensive loss | (4,429) | (2,030) | ||
Total stockholders' deficit | (3,039,921) | (2,735,384) | ||
Total liabilities and stockholders' deficit | 907,385 | 836,753 | ||
Parent Company [Member] | ||||
ASSETS: | ||||
Cash | 6 | 6 | $ 6 | $ 6 |
Total assets | 6 | 6 | ||
LIABILITIES: | ||||
Equity in net deficit of subsidiaries | 3,039,921 | 2,735,384 | ||
Due to subsidiary | 6 | 6 | ||
Total liabilities | 3,039,927 | 2,735,390 | ||
STOCKHOLDERS' DEFICIT: | ||||
Common stock, par value $0.01 per share; 170,000,000 shares authorized; 40,977,561 in 2018 and 42,898,329 in 2017 issued and outstanding | 410 | 429 | ||
Preferred stock, par value $0.01 per share; 5,000,000 shares authorized, none issued | ||||
Additional paid-in capital | 569 | 5,654 | ||
Retained deficit | (3,036,471) | (2,739,437) | ||
Accumulated other comprehensive loss | (4,429) | (2,030) | ||
Total stockholders' deficit | (3,039,921) | (2,735,384) | ||
Total liabilities and stockholders' deficit | $ 6 | $ 6 |
Parent Company Condensed Bala_2
Parent Company Condensed Balance Sheets (Parenthetical) (Detail) - $ / shares | Dec. 30, 2018 | Dec. 31, 2017 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 170,000,000 | 170,000,000 |
Common stock, shares issued | 40,977,561 | 42,898,329 |
Common stock, shares outstanding | 40,977,561 | 42,898,329 |
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 | 40,977,561 | 42,898,329 |
Common stock, shares outstanding | 40,977,561 | 42,898,329 |
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. 09, 2018 | Jun. 17, 2018 | Mar. 25, 2018 | Sep. 10, 2017 | Jun. 18, 2017 | Mar. 26, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Total revenues | $ 785,965 | $ 779,396 | $ 785,371 | $ 643,642 | $ 628,611 | $ 624,217 | $ 1,082,135 | $ 891,509 | $ 3,432,867 | $ 2,787,979 | $ 2,472,628 |
INCOME FROM OPERATIONS | 571,689 | 521,232 | 454,042 | ||||||||
Income before provision for income taxes | 99,248 | 91,197 | 103,670 | 84,551 | 88,532 | 90,514 | 134,563 | 136,556 | 428,678 | 400,153 | 344,658 |
PROVISION FOR INCOME TAXES | 66,706 | 122,248 | 129,980 | ||||||||
NET INCOME | $ 84,095 | $ 77,408 | $ 88,827 | $ 56,368 | $ 65,741 | $ 62,469 | $ 111,642 | $ 93,327 | 361,972 | 277,905 | 214,678 |
COMPREHENSIVE INCOME | $ 359,924 | $ 278,985 | $ 215,116 | ||||||||
EARNINGS PER SHARE: | |||||||||||
Common Stock - basic | $ 2.02 | $ 1.84 | $ 2.07 | $ 1.22 | $ 1.37 | $ 1.31 | $ 2.71 | $ 2.17 | $ 8.65 | $ 6.05 | $ 4.41 |
Common Stock - diluted | $ 1.95 | $ 1.78 | $ 2 | $ 1.18 | $ 1.32 | $ 1.26 | $ 2.62 | $ 2.09 | $ 8.35 | $ 5.83 | $ 4.30 |
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 | 361,972 | 277,905 | 214,678 | ||||||||
Income before provision for income taxes | 361,972 | 277,905 | 214,678 | ||||||||
PROVISION FOR INCOME TAXES | 0 | 0 | 0 | ||||||||
NET INCOME | 361,972 | 277,905 | 214,678 | ||||||||
COMPREHENSIVE INCOME | $ 359,924 | $ 278,985 | $ 215,116 | ||||||||
EARNINGS PER SHARE: | |||||||||||
Common Stock - basic | $ 8.65 | $ 6.05 | $ 4.41 | ||||||||
Common Stock - diluted | $ 8.35 | $ 5.83 | $ 4.30 |
Parent Company Condensed Stat_2
Parent Company Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net cash provided by operating activities | $ 394,171 | $ 341,261 | $ 292,460 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Net cash provided by investing activities | (88,257) | (83,738) | (55,280) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Payments of common stock dividends | (92,166) | (84,298) | (73,925) |
Purchase of common stock | (591,212) | (1,064,253) | (300,250) |
Other | 0 | (205) | 0 |
Net cash used in financing activities | (322,803) | (197,145) | (375,792) |
Cash and cash equivalents, beginning of period | 35,768 | 42,815 | 133,449 |
Cash and cash equivalents, end of period | 25,438 | 35,768 | 42,815 |
Parent Company [Member] | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net cash provided by operating activities | 382,716 | 299,576 | 281,731 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Dividends from subsidiaries | 297,792 | 852,325 | 82,856 |
Net cash provided by investing activities | 297,792 | 852,325 | 82,856 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Payments of common stock dividends | (92,166) | (84,298) | (73,925) |
Purchase of common stock | (591,212) | (1,064,253) | (300,250) |
Other | 2,870 | (3,350) | 9,588 |
Net cash used in financing activities | (680,508) | (1,151,901) | (364,587) |
CHANGE IN CASH AND CASH EQUIVALENTS | 0 | 0 | 0 |
Cash and cash equivalents, beginning of period | 6 | 6 | 6 |
Cash and cash equivalents, end of period | $ 6 | $ 6 | $ 6 |
Condensed Financial Information
Condensed Financial Information of The Registrant - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 30, 2018USD ($) | |
Condensed Financial Statements, Captions [Line Items] | |
Reclassification From Accumulated Other Comprehensive Loss | $ (0.4) |
Parent Company [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Adjustment To Equity In Net Deficit Of Subsidiaries | 6.7 |
Adjustment To Retained Deficit | $ 6.7 |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts (Detail) - Allowance for Doubtful Accounts Receivable [Member] - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance Beginning of Year | $ 1,424 | $ 2,342 | $ 2,662 | |
Provision (Benefit) | 903 | (88) | (51) | |
Additions and Deductions from Reserves | [1] | (448) | (830) | (269) |
Balance End of Year | $ 1,879 | $ 1,424 | $ 2,342 | |
[1] | Consists primarily of write-offs, recoveries of bad debt and certain reclassifications. |